PALO ALTO CALIF TOM AND JOE BARTON WELLKNOWN SHORT SELLERS IN DALLAS HAVE RESIGNED AS PARTNERS OF FESHBACH BROTHERS WHICH USED TO BE THE NATION'S LARGEST SHORTSELLING FIRM SHORT SELLERS BET ON SELECTED STOCKS TO DECLINE THEY BORROW STOCK AND IMMEDIATELY SELL IT EVENTUALLY THEY MUST BUY SHARES TO REPLACE THE BORROWED ONES BUT IF THE STOCK FALLS IN THE MEANTIME THEY PROFIT FESHBACH BROTHERS HAD CLOSE TO 900 MILLION IN ASSETS AT ITS PEAK BUT HAS SEEN ITS ASSET BASE ERODE IN 1991 AND 1992 THROUGH A COMBINATION OF LOSSES AND INVESTOR DEFECTIONS WE STILL HAVE OVER 250 MILLION SAYS JOE FESHBACH ONE OF THE THREE FESHBACH BROTHERS WHO OWN THE FIRM THE BARTONS HAD PROVIDED RESEARCH TO THE FESHBACHS FOR SEVERAL YEARS BEFORE JOINING FESHBACH BROTHERS IN 1988 THEY WILL CONTINUE TO PROVIDE RESEARCH ACCORDING TO BOTH TOM BARTON AND JOE FESHBACH TOM'S REMAINING AN INVESTOR WITH US SAID MR FESHBACH HE WAS JUST READY TO GO OFF ON HIS OWN TOM BARTON CONFIRMS THAT ACCOUNT WE JUST WANT TO RUN OUR OWN DEAL MY BROTHER AND I HE SAYS WE HAVE BEEN DOING SOME VENTURE CAPITAL STUFF SOME LONGS AND SOME SHORTS HE PLANS TO CONTINUE WITH EACH OF THOSE AREAS AND HOPES TO RAISE 100 MILLION TO 150 MILLION FROM INVESTORS 9307080059 930708 EXTHRIFT OPERATOR KNAPP IS CONVICTED OF CHEATING ARIZONA S&L FOR A LOAN BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES CHARLES W KNAPP THE FORMER THRIFT OPERATOR AND WOULDBE CORPORATE RAIDER WAS CONVICTED ON FEDERAL CHARGES THAT HE DUPED AN ARIZONA SAVINGS AND LOAN INTO LENDING HIM 15 MILLION TWO FORMER ASSOCIATES OF MR KNAPP'S HIS FINANCIAL ADVISER ANTHONY C SARNO AND HIS OUTSIDE ACCOUNTANT JOSEPH V NASH WERE CONVICTED ON SIMILAR CHARGES THE JURY DELIBERATED FOR FOUR DAYS OVER CHARGES OF CONSPIRACY AND MAKING FALSE STATEMENTS TO A LENDING INSTITUTION BEFORE FINDING THE 58YEAROLD MR KNAPP GUILTY ON THREE OF FOUR COUNTS AGAINST HIM THE JURY FOUND HIM NOT GUILTY ON ONE COUNT OF MAKING FALSE STATEMENTS MR KNAPP WAS THE ARCHETYPE OF THE HIGHLIVING THRIFT OWNER BEFORE HIS AMERICAN SAVINGS & LOAN ASSOCIATION WAS SEIZED IN 1984 BUT IT WAS HIS SUBSEQUENT INVESTMENT ACTIVITY THAT GOT HIM INTO TROUBLE WITH FEDERAL PROSECUTORS BEGINNING ABOUT 1988 MR KNAPP TRIED TO BECOME A PLAYER IN THE TAKEOVER GAME FALSELY CLAIMING THAT HIS CLOSELY HELD TRAFALGAR HOLDINGS LTD AND RELATED ENTITIES HAD A 6 BILLION FUND TO HELP CORPORATE RAIDERS IN A PAGE ONE ARTICLE IN THE WALL STREET JOURNAL IN 1989 TRAFALGAR WAS PORTRAYED AS LARGELY SMOKE AND MIRRORS RUSTLING UP ADVANCE FEES FOR LOANS THAT WERE NEVER MADE BECAUSE MR KNAPP DIDN'T HAVE THE MONEY INCREASINGLY DESPERATE FOR CASH HE PUT TOGETHER QUESTIONABLE ASSETS IN SUPPORT OF A BALANCE SHEET THAT WON HIM A 15 MILLION LOAN FROM AILING WESTERN SAVINGS & LOAN ASSOCIATION OF PHOENIX THE ARTICLE SAID WESTERN SAVINGS WAS SEIZED BY THE GOVERNMENT WHEN IT LATER BECAME INSOLVENT MR KNAPP IS ALSO A DEFENDANT IN A CIVIL SUIT BROUGHT BY THE RESOLUTION TRUST CORP THE FEDERAL THRIFTCLEANUP AGENCY RELATED TO WESTERN'S TROUBLES THE RTC CLAIMS THAT MR KNAPP TOOK PART IN A SCHEME BY THE PEOPLE WHO CONTROLLED WESTERN SAVINGS TO DEFRAUD THE THRIFT WESTERN SAVINGS' 1988 LOAN TO TRAFALGAR CAPITAL CORP WAS THE BASIS OF THE FEDERAL GOVERNMENT'S INDICTMENT UNSEALED IN MARCH IT CITED INSTANCES OF BACKDATING DOCUMENTS BOOKING OF NONEXISTENT ASSETS AND FALSE CLAIMS ABOUT INCOMPLETE DEALS MR MORGAN ALSO TESTIFIED THAT MR KNAPP'S WIFE ACTRESS LOIS HAMILTON WAS THE EVENTUAL RECIPIENT OF MORE THAN HALF OF A RESTRUCTURED 15 MILLION COMMISSION FOR THE CIRCLE C DEAL MS HAMILTON ATTENDED THE TRIAL REGULARLY MR KNAPP'S LAWYER JOHN J BARTKO OF SAN FRANCISCO SAID HE PLANNED TO APPEAL THE VERDICT THE JURY HAS SPOKEN IT'S A COMPLICATED CASE WE'LL PURSUE ALL LEGAL REMEDIES MR BARTKO SAID MR SARNO'S LAWYER DONALD RE OF LOS ANGELES COULDN'T BE REACHED TO COMMENT MR SARNO WAS FOUND GUILTY ON THREE COUNTS A FOURTH COUNT RESULTED IN A MISTRIAL MR NASH WHO REPRESENTED HIMSELF WAS FOUND GUILTY ON BOTH THE COUNTS AGAINST HIM LAST YEAR MR NASH WAS CONVICTED ON 15 UNRELATED COUNTS OF MAKING FALSE STATEMENTS AND DEFRAUDING FOUR BANKS OF 900000 AND IS CURRENTLY SERVING AN 11YEAR PRISON SENTENCE HE WASN'T AVAILABLE TO COMMENT YESTERDAY MR KNAPP WAS NEVER CHARGED WITH A CRIME IN CONNECTION WITH HIS STEWARDSHIP OF AMERICAN SAVINGS ONCE THE COUNTRY'S BIGGEST THRIFT AND HE HAS DENIED ANY WRONGDOING AFTER IT FAILED THE S&L NEEDED A 2 BILLION FEDERAL BAILOUT THREE YEARS AFTER MR KNAPP WAS FORCED OUT AMERICAN SAVINGS' PARENT SETTLED A SECURITIES AND EXCHANGE COMMISSION LAWSUIT CHARGING IT WITH VARIOUS ACCOUNTING AND LENDING ABUSES THAT INFLATED EARNINGS MAINLY DURING MR KNAPP'S TENURE 9307080058 930708 BUSINESS BRIEF LA QUINTA MOTOR INNS LP FEUD WITH A MAJOR HOLDER ENDED LITIGATION DISMISSED LA QUINTA MOTOR INNS LP SAN ANTONIO SAID IT ENDED ITS LONGRUNNING FEUD WITH A MAJOR UNITHOLDER THAT WAS TRYING TO TAKE CONTROL OF THE PARTNERSHIP THE HOTEL AND RESTAURANT OWNER SAID FEDERAL AND STATE COURTS IN DELAWARE APPROVED THE SETTLEMENT AGREEMENT BETWEEN GENERAL PARTNER LA QUINTA REALTY CORP LA QUINTA INNS INC WHICH OWNS THE GENERAL PARTNER AND THE UNITHOLDER RONIN PARTNERS LP AS A RESULT ALL LITIGATION INVOLVING PARTICIPANTS TO THE SETTLEMENT WAS DISMISSED A SPOKESMAN FOR THE PARTNERSHIP WOULDN'T DISCLOSE THE TERMS OF THE SETTLEMENT WHICH STEMS FROM RONIN'S FAILED ATTEMPTS TO TAKE CONTROL OF THE PARTNERSHIP BY SOLICITING CONSENTS FROM UNITHOLDERS RONIN ACCUSED THE GENERAL PARTNER OF CHARGING EXCESSIVE MANAGEMENT FEES TO THE PARTNERSHIP WHILE THE GENERAL PARTNER ALLEGED THAT RONIN BROKE FEDERAL SECURITIES LAWS IN ITS PURSUIT OF UNITHOLDER CONSENTS 9307080057 930708 BUSINESS BRIEF PENTAGEN TECHNOLOGIES SUIT SAYS CACI INTERNATIONAL IGNORED SOFTWARE RIGHTS PENTAGEN TECHNOLOGIES INTERNATIONAL LTD SUED CACI INTERNATIONAL INC FOR IGNORING ITS RIGHTS TO SOFTWARE WHICH COST PENTAGEN A US ARMY CONTRACT IN THE SUIT FILED IN NEW YORK STATE SUPREME COURT PENTAGEN IS SEEKING 8 MILLION IN DAMAGES PENTAGEN CLAIMS IT FAILED TO RECEIVE THE CONTRACT BECAUSE ITS SOFTWARE WAS TIED UP IN A DISPUTE OVER OWNERSHIP PENTAGEN SAID CACI KEPT POSSESSION OF THE SOFTWARE DURING THE DISPUTE DEPRIVING PENTAGEN OF THE OPPORTUNITY TO GET THE CONTRACT THE SUIT SAID CACI HAD FALSELY REPRESENTED THAT IT WAS PART OF A GROUP WITH RIGHTS TO THE SOFTWARE AND THAT WHEN CACI RELINQUISHED POSSESSION THE ARMY HAD RELEASED FUNDS FOR OTHER PURPOSES A CACI OFFICIAL SAID THE COMPANY HADN'T RECEIVED A COPY OF THE LAWSUIT AND COULDN'T COMMENT CACI IS AN INFORMATION SYSTEMS AND HIGHTECHNOLOGY SERVICES CONCERN BASED IN ARLINGTON VA PENTAGEN WHICH IS INCORPORATED IN ENGLAND BUT HAS OFFICES IN NEW YORK OWNS SEVERAL PATENT APPLICATIONS FOR WHAT IT CALLS A UNIVERSAL PROGRAMMING LANGUAGE 9307080056 930708 BUSINESS IN JAPAN BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY MASAYOSHI KANABAYASHI JAPANESE CONSUMERS CONTINUE TO SCRIMP WHILE BUSINESSES CRINGE AS G7 LEADERS DISCUSS JAPAN'S TRADE IMBALANCE THE JAPANESE BUYING PUBLIC SEEMS IN NO MOOD TO STEP UP ITS SPENDING MERRILL LYNCH PREDICTS A 15 INCREASE IN JAPANESE CONSUMER SPENDING THIS YEAR WEAKER THAN THE 17 INCREASE OF 1992 AND OVERTIME HOURS A BIG INCOME FACTOR HERE FELL 13 IN MAY PERSONAL BANKRUPTCIES HIT A RECORD 43394 CASES IN '92 UP 85 FROM '91 THEY ROSE ANOTHER 11 THROUGH APRIL MEANWHILE DURABLE GOODS SUFFER SALES OF VEHICLES FOR INSTANCE FELL 8 IN THE FIRST HALF HOW SCARED ARE CONSUMERS THE SAVINGS RATE SHOULD BE COMING DOWN DURING THE SLUMP SINCE PEOPLE TEND TO SKIMP ON SAVINGS TO KEEP UP THEIR LIFESTYLE SAYS A GOVERNMENT ECONOMIST BUT SAVINGS CONTINUE TO RISE FURTHER DEPRESSING CONSUMER SPENDING JAPANESE SAVED 146 OF DISPOSABLE INCOME IN THE YEAR ENDED MARCH 31 1992 UP FROM 135 IN 1991 NISSAN'S TOSHIAKI YASUDA SEES A RAY OF HOPE PEOPLE ARE MORE WILLING TO LISTEN TO PITCHES FROM DOORTODOOR CAR SALESMEN STILL THE LISTENING ISN'T TRANSLATING TO BIG SALES GAINS MR YASUDA ADDS UPSTART DISCOUNTERS TURN JAPAN'S 3 BILLION MARKET FOR MEN'S SUITS INSIDEOUT ON WEEKENDS IN TOKYO SLICK FULLCOLOR NEWSPAPER INSERTS FOR MENSWEAR RETAILERS TOUT 90 OFF SALES IN HUGE PRINT AOYAMA TRADING A MENSWEAR CHAIN ESCALATED A PRICE WAR LATE LAST YEAR BY PUSHING 23 SUITS AS LOSS LEADERS AS A RESULT OTHER OUTLETS SCRAMBLED TO INCREASE IMPORTS OF CHEAP SUITS FROM CHINA AND NORTH KOREA AOYAMA MAKES MEN'S SUITS AS WORK UNIFORMS' NOT FASHIONABLE APPAREL SAYS YOSHINORI MOUDA OF NIKKO RESEARCH CENTER SOME COMPANIES RETALIATE AS THEIR SALES TUMBLE ONWARD KASHIYAMA THE COUNTRY'S TOP MAKER OF HIGHEND SUITS CUT OFF SUPPLIES TO AOYAMA APPARENTLY TO PROTECT ITS LARGER MORE PROFITABLE SALES AT DEPARTMENT STORES AOYAMA FIRED BACK BY SELLING ITS INVENTORY OF ONWARD SUITS AT BIG DISCOUNTS A SURE WAY TO DAMAGE BRAND IMAGE IN JAPAN IN 1992 JAPAN IMPORTED 15 MILLION CHINESE SUITS UP 115 FROM 1991 JAPANESE CEOS FIND LIFE IS GETTING TOUGHER AT THE TOP A RECORD 247 PRESIDENTS OF MAJOR FIRMS HAVE STEPPED DOWN SO FAR THIS YEAR WAKO RESEARCH INSTITUTE SAYS THE NUMBER COULD HIT 270 BY THE END OF 1993 COMPARED WITH 233 FOR ALL OF 1992 SOME CEOS TAKE THE RAP FOR SCANDALS THAT DATE FROM THE 1980S SUMITOMO BANK'S SOTOO TATSUMI QUIT AFTER THE BANK WROTE OFF 917 MILLION IN LOANS MANY OF THEM TO A SCANDALPLAGUED TRADING FIRM MANY EXECUTIVES WERE FORCED OUT FOR POOR PERFORMANCE AS CORPORATE JAPAN MUDDLES THROUGH WHAT IS EXPECTED TO BE ITS FOURTH STRAIGHT YEAR OF DECLINING PROFITS AMONG THE CASUALTIES KUNIYASU KOSUGE OF ISETAN A DEPARTMENTSTORE OPERATOR MEANWHILE 40 OF JAPAN'S TOP FIRMS HAVE CUT EXECUTIVE PAY SINCE 1990 SAYS THE INSTITUTE OF LABOR ADMINISTRATION THE TOP FIVE STEELMAKERS IN JAPAN MUST INVEST MORE THAN 1376 BILLION TO REPLACE MANY OF THEIR MILLS OVER EIGHT YEARS TO REMAIN COMPETITIVE SAYS THE JAPAN DEVELOPMENT BANK BUT NKK KOBE STEEL AND KAWASAKI STEEL RECENTLY POSTED LOSSES PROFITS ALSO PLUNGE AT NIPPON STEEL AND SUMITOMO METAL INDUSTRIES JAPAN'S WOOD IMPORTERS TURN TO SCANDINAVIA AS US LUMBERING RULES TIGHTEN AND TIMBER PRICES FIRM UP TRADING FIRM NISSHO IWAI SAYS FINNISH WOOD IS CHEAPERDESPITE HIGHER SHIPPING COSTSTHAN US PRODUCT THE US WAS JAPAN'S TOP WOOD SUPPLIER IN 1992 WITH EXPORTS OF 28 BILLION PATENT DISPUTES SCARE JAPANESE FIRMS SAYS NOMURA RESEARCH INSTITUTE IT NOTES 50 OF JAPANESE COMPANIES SAY THEY FEAR A PATENT SUIT BY A US FIRM NEARLY 9 SAY THEY HAD PATENT DISPUTES WITH FOREIGN FIRMS IN THE LAST FIVE YEARS KOREAN CARRIERS USE SEOUL AS A HUB TO SKIRT JAPANESE STOPOVER RESTRICTIO KOREAN AIRLINES MAY STOP IN JAPAN TO PICK UP PASSENGERS ON JUST ONE DIRECT INTERNATIONAL FLIGHT ITS SEOULNARITALOS ANGELES ROUTE BUT TO BOOST INTERNATIONAL RIDERSHIP KAL AVOIDS THE RULE BY CARRYING FLIERS ON ITS ROUTES BETWEEN 10 JAPANESE REGIONAL AIRPORTS AND SEOUL WHERE THEY CAN THEN TRANSFER TO KAL FLIGHTS TO EUROPE AND ELSEWHERE OF THE 126 MILLION KAL PASSENGERS WHO BOUGHT TICKETS IN JAPAN AND FLEW TO SEOUL LAST YEAR 22 WENT ON TO OTHER DESTINATIONS TRAVELERS IN JAPANESE CITIES WITHOUT DIRECT FLIGHTS TO THE TOKYO AREA'S NARITA AIRPORT JAPAN'S MAIN OVERSEAS GATEWAY LOVE THE LOOPHOLE FOR INSTANCE PASSENGERS FROM TOYAMA IN CENTRAL JAPAN MUST TAKE A 4 1/2HOUR TRAIN RIDE TO CATCH A FLIGHT TO EUROPE FROM NARITA BUT IF THEY HOP A KOREAN CARRIER FROM TOYAMA THEY CAN HUB AT SEOUL'S AIRPORT JUST 90 MINUTES AWAY JAPAN DOESN'T PROTEST THE LOOPHOLE BUT SOME ANALYSTS SAY FRICTION MAY FLARE IF KOREANS LOCK UP LUCRATIVE SPOKE ROUTES TO SEOUL BRIEFS JAPAN'S BIOTECHINDUSTRY SALES WILL TOP 275 BILLION BY YEAR 2000 UP FROM 55 BILLION IN 1992 SAYS THE JAPAN BIOINDUSTRY ASSOCIATION DAIWA BANK NAMES THE FIRST FOREIGNER AS A DIRECTOR OF A JAPANESE BANK BRITON DAVID H DREWERY 55 HEAD OF DAIWA'S US COMMERCIALBANKING DIVISION 9307080055 930708 BUSINESS BRIEFS FMC CORP ACQUIRED SOFEC INC A CLOSELY HELD ENGINEERING AND CONSTRUCTION CONCERN TERMS WEREN'T DISCLOSED GRANT TENSOR GEOPHYSICAL CORP SOLD MOST OF ITS SEISMIC DATA PROCESSING ASSETS TO PETROLEUM GEOSERVICES AS OF NORWAY FOR 55 MILLION IN CASH AND THE ASSUMPTION OF 106 MILLION IN LIABILITIES MCI COMMUNICATIONS CORP RECEIVED A FIVEYEAR 15 MILLION CONTRACT TO PROVIDE HOLIDAY INN WORLDWIDE WITH GLOBAL COMMUNICATIONS SERVICES IN LATIN AMERICA NEW VALLEY CORP'S WESTERN UNION FINANCIAL SERVICES INTERNATIONAL UNIT BEGAN OFFERING MONEYTRANSFER SERVICES IN THAILAND FRANKLIN ELECTRONIC PUBLISHERS INC INTRODUCED THE TRADELINE POCKET STOCK GUIDE FOR ITS ELECTRONIC BOOK SYSTEM PROVIDING STOCK PERFORMANCE HISTORIES FOR ALMOST 6000 STOCKS CIGNA CORP SOLD A 10 STAKE IN ITS JAPANESE UNIT INA LIFE INSURANCE CO TO YASUDA FIRE & MARINE INSURANCE CO TERMS WEREN'T DISCLOSED SCITEX CORP COMPLETED THE ACQUISITION OF DAYTON OPERATIONS FROM EASTMAN KODAK CO FOR 35 MILLION AS WELL AS FUTURE CONTINGENT PAYMENTS OF AS MUCH AS 35 MILLION 9307080054 930708 BUSINESS BRIEF GREAT ATLANTIC & PACIFIC TEA CO INCOME TOTALED 171 MILLION DURING FISCAL FIRST QUARTER GREAT ATLANTIC & PACIFIC TEA CO MONTVALE NJ REPORTED NET INCOME IN THE FISCAL FIRST QUARTER COMPARED WITH A YEAREARLIER LOSS BUT DECLINING SALES CONTINUED TO ERODE OPERATING INCOME FOR THE QUARTER ENDED JUNE 19 THE GROCERYSTORE CHAIN REPORTED NET INCOME OF 171 MILLION OR 45 CENTS A SHARE COMPARED WITH A NET LOSS OF 1574 MILLION OR 412 A SHARE IN THE YEAREARLIER PERIOD OPERATING INCOME DECLINED 20 TO 48 MILLION THE 1992 FISCAL FIRST QUARTER INCLUDED 1802 MILLION OR 472 A SHARE IN NONRECURRING CHARGES FOR ACCOUNTING CHANGES AND AN INVESTMENT LOSS SALES AT STORES OPEN MORE THAN ONE YEAR DECLINED 08 COMPARED WITH A 31 SAMESTORE SALES DECLINE IN LAST YEAR'S FISCAL FIRST QUARTER GROSS SALES FELL 11 TO 328 BILLION THE COMPANY SAID IT RECEIVED A SLIGHT BOOST FROM A NEW JERSEY GROCERY WORKERS' STRIKE THAT DIDN'T AFFECT A&P STORES IT WAS ONLY 80 STORES FOR THREE WEEKS THE SPOKESMAN ADDED BUT WE BELIEVE WE HUNG ONTO SOME OF THAT NEW BUSINESS 9307080053 930708 WHO'S NEWS RADIO SHACK TAPS EXCHIEF OF SHONEY'S BY HAL LANCASTER AND KYLE POPE STAFF REPORTERS OF THE WALL STREET JOURNAL FORT WORTH TEXAS TANDY CORP REACHED OUTSIDE AND HIRED A FORMER RESTAURANT EXECUTIVE AS PRESIDENT OF ITS HUGE BUT TROUBLESOME RADIO SHACK DIVISION LEONARD ROBERTS 44 YEARS OLD IS THE FORMER CHIEF EXECUTIVE OFFICER OF SHONEY'S INC AND ARBY'S INC BOTH RESTAURANT CHAINS HIS RECENT JOBS RAISE QUESTIONS ABOUT HOW ATTUNED HE IS TO RADIO SHACK'S CONSUMER ELECTRONICS BUSINESS TANDY IS IN THE MIDDLE OF A CORPORATEWIDE RESTRUCTURING IN WHICH IT IS SELLING OFF MOST OF ITS MANUFACTURING OPERATIONS TO FOCUS ON RETAILING BUT IN RECENT YEARS SALES AT ITS FLAGSHIP RADIO SHACK STORES HAVE LAGGED AS HAS TANDY'S STOCK PRICE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY TANDY FELL 125 CENTS TO 28875 JOHN V ROACH TANDY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID AT A LUNCHEON YESTERDAY THAT HE WAS ATTRACTED BY MR ROBERTS'S REPUTATION AS A STRONG MARKETER WHO HAS EXTENSIVE EXPERIENCE IN RUNNING MULTIUNIT OPERATIONS AND AS A PEOPLE PERSON WHO GETS ALONG WELL WITH FRANCHISEES AND EMPLOYEES BOTH SHONEY'S AND ARBY'S PROFITABILITY INCREASED MARKEDLY DURING HIS STEWARDSHIP MR ROBERTS ALSO HAS A TENDENCY TO GET INTO DUSTUPS WITH HIS BOSSES AT ARBY'S HE WAS FIRED IN 1989 AFTER A CLASH WITH INVESTOR VICTOR POSNER WHO CONTROLLED THE COMPANY MR ROBERTS APPARENTLY SUPPORTED A BUYOUT BID FOR ARBY'S THAT MR POSNER REJECTED AT THE TIME THE COMPANY SAID HE WAS FIRED FOR INSUBORDINATION MR ROBERTS QUICKLY LANDED AT SHONEY'S WITH A MANDATE TO CHANGE THE CORPORATE CULTURE THAT HAD LED TO THE FILING OF A RACIAL DISCRIMINATION SUIT LATE LAST YEAR HE LEFT AFTER A DISPUTE WITH BOARD MEMBERS OVER THE LAWSUIT'S 105 MILLION SETTLEMENT THAT HE NEGOTIATED THE SETTLEMENT ONE OF THE LARGEST EVER FOR A DISCRIMINATION CASE APPARENTLY RUFFLED FEATHERS ON THE BOARD INCLUDING THOSE OF COMPANY FOUNDER AND THE LARGEST SHAREHOLDER RAYMOND DANNER WHO WAS FORCED TO SELL SOME OF HIS HOLDINGS TO COVER PART OF THE PAYOUT TO EMPLOYEES MR ROACH SAID MR ROBERTS'S EMPLOYMENT HISTORY DIDN'T BOTHER HIM IN THE ARBY'S SITUATION HE SAID WHEN YOU CONSIDERED THE PEOPLE INVOLVED THE CONFLICT WAS UNDERSTANDABLE HE DESCRIBED MR ROBERTS AS A VICTIM IN THE SHONEY'S DISPUTE HE WAS THE GOOD GUY MR ROACH SAID MR ROBERTS ISN'T GETTING INTO ANYTHING NEARLY AS EXPLOSIVE AT TANDY BUT NEITHER IS HE HEADED FOR A WALK IN THE PARK SAMESTORE SALES AT ALL TANDY RETAIL OPERATIONS LAST YEAR DECLINED ABOUT 2 AND THE 6700STORE RADIO SHACK CHAIN GENERATED ABOUT 70 OF TANDY'S 1992 RETAIL SALES OF ABOUT 4 BILLION SO FAR THIS YEAR MR ROACH CHARACTERIZED CONSUMER ELECTRONICS SALES THE BULK OF RADIO SHACK'S OPERATION AS GOOD AND INDICATED THAT OVERALL JUNE SALES DUE OUT TODAY WILL SHOW SAMESTORE GAINS THE PROBLEM FOR MR ROBERTS IS THAT GROWTH ISN'T LIKELY TO COME FROM NEW OUTLETS AT THE MATURE CONSUMER ELECTRONICS CHAIN WE'RE LITERALLY EVERYWHERE MR ROACH SAID GROWTH HAS TO COME FROM INCREASING VOLUME BY STORE MR ROBERTS NOTED THAT THE KEY MEASURE HE WOULD JUDGE HIS PERFORMANCE BY WOULD BE COMPARABLE SALES AT STORES OPEN FOR AT LEAST A YEAR THAT'S WHAT WE ALL WANT TO WATCH HE SAID STILL BOTH MR ROACH AND MR ROBERTS SAID THEY DIDN'T EXPECT RADICAL CHANGES FOR THE CHAIN MR ROBERTS WOULDN'T DISCUSS RADIO SHACK'S WEAKNESSES BUT SAID HE SAW OPPORTUNITIES IN THE AREA OF CHANGING CONSUMERS' PERCEPTIONS OF THE VALUE PROVIDED TO THEM BY RADIO SHACK WHETHER FINETUNING WILL GET THE JOB DONE AT THE VENERABLE CHAIN IS ANOTHER QUESTION THE RADIO SHACK CONCEPT HAS JUST FOSSILIZED SAID AN ADVISER TO THE COMPANY WHO REQUESTED ANONYMITY RADIO SHACK IS GOING TO HAVE TO MAKE REALLY RADICAL CHANGES IN ORDER TO SALVAGE THINGS AMONG THE PROBLEMS THERE HE SAID WERE INBRED MANAGERS WHO WERE HARDLY KNOWN FOR THEIR CREATIVITY OR RISKTAKING DENNIS C VAN ZELFDEN A RETAIL ANALYST AT RAUSCHER PIERCE REFSNES IN DALLAS SAID THE CHAIN CONTINUES TO LANGUISH DESPITE A NEW ADVERTISING CAMPAIGN THAT HAS WON PRAISE AND A SPATE OF NEW EXCLUSIVE PRODUCTS INCLUDING TANDY'S SENSATION MULTIMEDIA COMPUTER THEY KEEP TINKERING WITH IT HE SAID SO FAR NOTHING HAS WORKED MR ROBERTS'S DEFT TOUCH WITH FRANCHISEES COULD COME IN HANDY WITH RADIO SHACK'S DISGRUNTLED DEALERS RANDY YARBROUGH A SPOKESMAN FOR THE RADIO SHACK DEALERS ASSOCIATION IN WALSENBURG COLO SAID THAT ABOUT 70 OF HIS GROUP'S MEMBERS ARE DISSATISFIED WITH THE COMPANY PRIMARILY BECAUSE OF SLIPPING GROSS MARGINS AND A RECENT HISTORY OF LACKLUSTER PRODUCTS THE PRODUCT LINE HAD GOTTEN TO BE A LITTLE BIT ANTIQUATED HE SAID HOPEFULLY THIS GUY CAN COME IN AND CHANGE SOME OF THAT IN SELECTING MR ROBERTS AFTER A SEARCH OF SEVERAL MONTHS MR ROACH BYPASSED THE TROIKA OF EXECUTIVE VICE PRESIDENTS WHO HAD BEEN APPOINTED TO THE OFFICE OF THE PRESIDENT LAST YEAR AFTER LONGTIME RADIO SHACK PRESIDENT BERNARD APPEL WAS NAMED CHAIRMAN OF RADIO SHACK IN WHAT APPEARED TO BE A DEMOTION DESPITE MR APPEL'S TITLE THE THREE EXECUTIVES REPORTED DIRECTLY TO MR ROACH EARLIER THIS YEAR MR APPEL RETIRED MR ROACH SAID THAT HE EVENTUALLY DECIDED THAT RUNNING RADIO SHACK BY COMMITTEE WASN'T PRACTICAL FOR THE LONG TERM HE SAID ALL THREE EXECUTIVES WERE CONSIDERED FOR THE RADIO SHACK PRESIDENCY I INTERVIEWED SEVERAL PEOPLE THAT ANY OF THE THREE WOULD HAVE BEEN BETTER THAN HE SAID THE THREE EXECUTIVES WILL REMAIN IN THEIR CURRENT POSITIONS AND REPORT TO MR ROBERTS MR ROACH SAID 9307080052 930708 LETTERS TO THE EDITOR NOT TO WORRY GRADS THE JOBS ARE OUT THERE COLLEGE CLASS OF '93 LEARNS HARD LESSON CAREER PROSPECTS ARE WORST IN DECADES MAY 20 PAINTS YET ANOTHER DOOM AND GLOOM PICTURE OF THE JOB SITUATION FOR COLLEGE GRADUATES AS COUNSELORS IN THE OFFICE OF CAREER SERVICES AT BARNARD COLLEGE WE ARE WELL AWARE OF THE STRUCTURAL CHANGES IN THE WORK WORLD RESULTING IN A REDUCTION IN TRADITIONAL ENTRYLEVEL OPPORTUNITIES FOR COLLEGE GRADUATES THE JOB MARKET IS CERTAINLY TIGHT BUT ENTRYLEVEL JOBS ARE OUT THERE YOU TAKE FAR TOO LIMITING A VIEW OF THE TYPES OF WORK SUITABLE FOR GRADUATES WITH EXPENSIVE COLLEGE EDUCATIONS A COLLEGE EDUCATION CANNOT AND SHOULD NOT BE JUDGED ON THE BASIS OF A GRADUATE'S FIRST JOB MEMBERS OF THE CLASS OF '93 WILL HAVE A LIFETIME OF JOBS AND MOST LIKELY THREE OR FOUR DIFFERENT CAREERS TO ANTICIPATE IN THE LONG RUN THAT FIRST REAL JOB IS SIMPLY A CHANCE FOR THE ENTRYLEVEL WORKER TO LEARN SKILLS WORK CULTURE AND WHETHER A PARTICULAR FIELD IS LIKELY TO BE SUITABLE FOR A LONGTERM CAREER THAT FIRST JOB MAY NOT BE GLAMOROUS OR INVOLVE THE PERFORMING OF HIGHLEVEL TASKS AND MIGHT EVEN BE PERFORMED BY SOMEONE WITH FAR LESS EDUCATION BUT WELLPERFORMED BY AN AMBITIOUS HARDWORKING COLLEGE GRADUATE THAT POSITION COULD BE JUST A STEPPING STONE TO A CHALLENGING FULFILLING CAREER THE DAYS OF THE WELLDEFINED PREDICTABLE CAREER LADDER ARE GONE TODAY'S COLLEGE GRADUATES MUST OFTEN TURN TO LESS TRADITIONAL MORE ADVENTUROUS ENTREES TO THE WORLD OF WORK THEY JOIN THE PEACE CORPS OR VISTA OR TEACH ENGLISH IN JAPAN THEY ACQUIRE WORKPLACE SKILLS IN VOLUNTEER POSITIONS WHILE EARNING INCOME IN ODD JOBS ON THE SIDE OR THOSE PREFERRING A MORE TRADITIONAL PATH TARGET SMALLER COMPANIES AS YOU SUGGEST RATHER THAN LARGE CORPORATE TRAINING PROGRAMS 9307080051 930708 WHO'S NEWS EASTCO INDUSTRIAL SAFETY CORP EASTCO INDUSTRIAL SAFETY CORP HUNTINGTON STATION NY SIMON JACOBS 35 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT A NEW POSITION AT THE MAKER OF PROTECTIVE CLOTHING MR JACOBS HAD BEEN CHIEF EXECUTIVE OFFICER OF THE BRITISH SCHOOL OF MOTORING A DRIVING SCHOOL CHAIN IN LONDON MEANWHILE JOEL POZNANSKY 35 WAS NAMED VICE PRESIDENT OF OPERATIONS AND PRODUCTION ALSO A NEW POSITION HE HAD BEEN CEO OF US COMPONENTS INC THE BOHEMIA NY UNIT OF UNITECH PLC AN INTERNATIONAL PUBLIC ELECTRONICS GROUP IN THE UK BOTH ALSO WERE NAMED DIRECTORS INCREASING THE BOARD'S SIZE TO SEVEN MEMBERS 9307080050 930708 MARTIN MARIETTA WINS NAVY PACT BETHESDA MD MARTIN MARIETTA CORP SAID IT RECEIVED A 150 MILLION CONTRACT FROM THE NAVY TO PRODUCE DIAGNOSTIC EQUIPMENT THAT TESTS A WIDE VARIETY OF ELECTRONIC AND AVIONIC SYSTEMS THE AEROSPACE CONCERN SAID IT WILL PRODUCE 69 OF THE DIAGNOSTIC UNITS WITH DELIVERIES TO BEGIN IN ABOUT A YEAR AND CONTINUING INTO 1995 THE SYSTEMS WILL BE ASSEMBLED AT A COMPANY FACILITY IN AMERICUS GA 9307080049 930708 DISASTER RELIEF FLOODED WITH ERRORS BY SHELDON RICHMAN AMERICANS WHO DO NOT LIVE IN FLOODPRONE PARTS OF THE COUNTRY MAY BE WONDERING TODAY WHY THEY WILL HAVE TO PAY HUNDREDS OF MILLIONS OF DOLLARS TO PEOPLE WHO DO THE ANGRY RESPONSE OF THE MISSISSIPPI RIVER TO THE SUMMER RAINS HAS MADE LIFE EXCEEDINGLY DIFFICULT FOR RESIDENTS IN EIGHT STATES ALONG THE RIVER BUT SHOULD THEY AS A MATTER OF RIGHT HAVE ACCESS TO THE PUBLIC TREASURY PRESIDENT CLINTON HAS PROMISED TO RELEASE 397 MILLION IN DISASTER FUNDS AND WILL ASK CONGRESS FOR MORE THE AGRICULTURE DEPARTMENT ALSO HAS PROGRAMS FOR FARMERS WHOSE CROPS ARE DAMAGED BY FLOODS BESIDES THAT SOME RESIDENTS HAVE FEDERAL FLOOD INSURANCE A LOWCOST POLICY PROVIDED TO QUALIFYING AREAS BY THE FEDERAL EMERGENCY MANAGEMENT AGENCY'S NATIONAL FLOOD INSURANCE PROGRAM IN ALL MOST OF THE DAMAGE FROM THE FLOODING WILL FALL ON TAXPAYERS TAXPAYERS MIGHT BE MAGNANIMOUS ENOUGH FOR ONETIME ASSISTANCE BUT WHAT IF THOSE WHO ARE WASHED OUT USE THEIR GOVERNMENT ASSISTANCE TO REBUILD IN THE SAME PLACE ISN'T THERE A BETTER WAY THE NATIONAL FLOOD INSURANCE PROGRAM AND THE INSURANCE INDUSTRY SAY THAT THE FEDERAL GOVERNMENT HAS TO BE INVOLVED IN FLOOD INSURANCE BECAUSE AS JERRY PARSONS OF STATE FARM MUTUAL INSURANCE CO PUTS IT FLOODS ARE NOT AN INSURABLE RISK IN OTHER WORDS HE EXPLAINED EVERYONE WHO WOULD WANT FLOOD INSURANCE LIVES IN FLOODPRONE AREAS WHILE PEOPLE WHO DON'T LIVE IN SUCH AREAS WOULD NOT WANT THE INSURANCE THIS IS SAID TO MAKE SPREADING THE RISK PROBLEMATIC THE FEDERAL GOVERNMENT SET UP THE PROGRAM IN 1968 UNTIL THAT TIME THE GOVERNMENT HAD PROVIDED AD HOC DISASTER ASSISTANCE TO HOMEOWNERS WHO SUFFERED FLOOD LOSSES AND FOUND THAT THE HOMEOWNERS SIMPLY REBUILT IN THE SAME FLOODPRONE AREAS THE PROGRAM WAS TO INVOLVE A QUID PRO QUO SUBSIDIZED INSURANCE TO RISKY COMMUNITIES IN RETURN FOR LANDUSE REGULATIONS THAT WOULD DIRECT DEVELOPMENT AWAY FROM THE RISKIEST AREAS BETH MILLEMANN EXECUTIVE DIRECTOR OF THE COAST ALLIANCE A CONSERVATIONIST GROUP SAYS THE FEDERAL GOVERNMENT HAS BEEN LAX IN ENFORCING THE LANDUSE SIDE OF THE AGREEMENT MOREOVER BANKS WHICH ARE SUPPOSED TO REQUIRE FLOOD INSURANCE IN RISKY AREAS ON ALL HOMES WITH FEDERALLY BACKED MORTGAGES HAVE APPARENTLY NOT BEEN VIGILANT IN MAKING SURE HOMEOWNERS CONTINUE THEIR POLICIES AS A CONSEQUENCE THE FEDERAL GOVERNMENT FINDS ITSELF PAYING OUT MORE AND MORE IN DISASTER CLAIMS LAST YEAR WHICH SAW HURRICANES ANDREW AND INIKI AS WELL AS OTHER NATURAL DISASTERS WAS PARTICULARLY ROUGH AS OF JUNE 1 THE NATIONAL FLOOD INSURANCE PROGRAM HAD 36 MILLION IN ITS FUND THE LOWEST AMOUNT IN MANY YEARS AS A COMPARISON MS MILLEMANN SAYS THAT IN 1989 BEFORE HURRICANE HUGO HIT CAUSING 7 BILLION IN DAMAGE THE FUND HAD 500 MILLION TODAY THE PROGRAM HAS MORE THAN 2 1/2 MILLION POLICIES AND MORE THAN 200 BILLION WORTH OF INSURANCE IN FORCE AND THE NATIONAL HURRICANE CENTER SAYS THE NATION IS HEADED INTO A NEW 25YEAR STORM CYCLE THAT WILL FEATURE SUPER HURRICANES AS INSURANCE PROGRAM RATEMAKER SAUL JAY SINGER SAID LAST YEAR THE WORST FLOOD DAMAGES ARE YET TO COME IN OTHER WORDS TAXPAYERS HAVE ONLY SEEN THE BEGINNING OF THE BILL FOR FLOOD DAMAGE TO REPEAT ISN'T THERE A BETTER WAY WE CAN DRAW A FEW CONCLUSIONS FROM THE EXISTENCE OF GOVERNMENTPROVIDED FLOOD INSURANCE FIRST WHATEVER POLICYHOLDERS PAY FOR IT THE PREMIUMS HAVE TO BE LESS THAN WHAT PRIVATE INSURERS WOULD CHARGE THERE WOULD BE NO POINT IN FEDERAL INSURANCE THAT COSTS THE SAME AS COMMERCIAL INSURANCE SECOND TO THE EXTENT THAT FEDERAL INSURANCE IS LESS EXPENSIVE THAN PRIVATE INSURANCE THE GOVERNMENT IS SUBSIDIZING AND ENCOURAGING PROPERTY OWNERS TO LIVE IN RISKY AREAS GOVERNMENT INSURANCE THAT IS AGGRAVATES THE INSURANCE PROBLEM KNOWN AS MORAL HAZARD WHICH IS THE PHENOMENON WHEREBY THE RISK THAT IS INSURED AGAINST IS MORE LIKELY PRECISELY BECAUSE OF THE INSURANCE BUT WHAT ABOUT THE ARGUMENT THAT FLOOD DAMAGE IS UNINSURABLE BECAUSE THE RISK CAN'T BE SPREAD WIDE ENOUGH SURELY NOT EVERY FLOODPRONE AREA FLOODS EVERY YEAR WHY CAN'T THE RISK BE SPREAD AMONG ALL THE RESIDENTS OF ALL THE FLOODPRONE AREAS AS A MATTER OF FACT THERE IS INCONTROVERTIBLE PROOF THAT FLOOD DAMAGE IS INSURABLE SOME PRIVATE INSURERS SUCH AS LLOYDS OF LONDON OFFER UNSUBSIDIZED FLOOD INSURANCE THE DRAWBACK TO PRIVATE INSURANCE IS THAT IT IS ABOUT 10 TIMES THE COST OF GOVERNMENT INSURANCE FEW PEOPLE WILL BUY PRIVATE INSURANCE IF THEY CAN GET TAXPAYERSUBSIDIZED FEDERAL INSURANCE ACTUALLY ONLY 13 OF ELIGIBLE HOMEOWNERS EVEN BUY CHEAP FEDERAL INSURANCE THOSE WHO DON'T BUY AREN'T STUPID AND NEITHER ARE MORTGAGEHOLDERS THEY KNOW THAT THE GOVERNMENT WILL STEP IN WITH DISASTER RELIEF INCLUDING LOWCOST LOANS FOR REBUILDING JUST AS MR CLINTON PROMISED LET'S SAY THE DEFENDERS OF GOVERNMENT INSURANCE ARE RIGHT AND THAT THERE WOULD BE NO PRIVATE INSURANCE THAT IS STILL NO REASON FOR FEDERAL ASSISTANCE PART OF THE FUNCTION OF INSURANCE IS TO DISCOURAGE RISKY ACTIVITY BY SETTING PREMIUMS ACCORDING TO RISK WITHOUT INSURANCE OR THE PROMISE OF DISASTER RELIEF FEWER PEOPLE WOULD BUILD HOMES ALONG THE COASTS OR ALONG THE MISSISSIPPI THOSE WHO BUILT ANYWAY WOULD UNDERSTAND THAT THEY BORE THE FULL RISK FOR DOING SO THEY COULD NOT ROPE THE TAXPAYERS INTO SAVING THEIR COSTLY INVESTMENT ALL OF THIS SUGGESTS WHY WE HAVE FEDERAL INSURANCE WEALTHY WELLCONNECTED PROPERTY OWNERS AND INFLUENTIAL LOCAL OFFICIALS DEFENDING THEIR TAX BASE LOBBIED FOR INSURANCE INITIALLY AND WOULD FIGHT ANY ATTEMPT TO END IT OR SCALE IT BACK BUT THAT SHOULDN'T BLIND THE REST OF US TO THE INJUSTICE AND JUST PLAIN BAD ECONOMICS ENTAILED IN FEDERAL INSURANCE FREEMARKET INSURANCE IS LIKE A FUSE BOX WITH RISING PREMIUMS DISCOURAGING RISKY BEHAVIOR SUCH AS BUILDING ALONG COASTS AND RIVERS GOVERNMENT INSURANCE AND DISASTER RELIEF ARE EQUIVALENT TO PUTTING A PENNY IN THE FUSE BOX WITH ALL THE DANGER THAT SUCH A MEASURE REPRESENTS MR RICHMAN IS AN EDITOR AT THE CATO INSTITUTE IN WASHINGTON 9307080048 930708 TECHNOLOGY & HEALTH WANG'S REORGANIZATION PLAN WOULD LET COMPANY LEAVE CHAPTER 11 BY SEPT 30 BY SUZANNE ALEXANDER STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON WANG LABORATORIES INC FILED A REORGANIZATION PLAN UNDER WHICH IT WOULD LEAVE BANKRUPTCY COURT BY SEPT 30 AND POST A 199 MILLION LOSS FOR THE FISCAL YEAR ENDED JUNE 30 UNDER THE PLAN WANG SAID IT WOULD EMERGE FROM CHAPTER 11 FREE OF A SUBSTANTIAL PORTION OF ITS DEBT JOSEPH M TUCCI WANG'S PRESIDENT AND CHIEF EXECUTIVE SAID WE'RE ON THE FINAL LEG OF THIS BUSINESS PLAN AND I GUARANTEE YOU IT IS DOABLE WANG WHICH FILED FOR BANKRUPTCY PROTECTION IN AUGUST 1992 SAID THAT UNDER THE PLAN IT WOULD NAME A NEW NINEMEMBER BOARD OF DIRECTORS TO TAKE OFFICE ONCE THE PLAN IS CONSUMMATED THE NEW BOARD WOULD INCLUDE RAYMOND KURZWEIL CHAIRMAN OF KURZWEIL APPLIED INTELLIGENCE INC AND MR TUCCI WHO WOULD SUCCEED WANG'S CURRENT CHAIRMAN MICHAEL MEE AS A DIRECTOR AND SOLE MANAGEMENT REPRESENTATIVE ON THE BOARD MR MEE WOULD CONTINUE TO SERVE AS CHIEF FINANCIAL OFFICER WANG SAID AND THE NEW BOARD WOULD ELECT ITS OWN CHAIRMAN THE COMPANY WHICH WILL STOP MAKING COMPUTERS AND FOCUS INSTEAD ON SOFTWARE AND SERVICES SAID IT EXPECTS TO REPORT OPERATING PROFIT OF 53 MILLION EARNINGS OF 26 MILLION AND REVENUE OF ABOUT 955 MILLION IN A 1994 FISCAL YEAR THAT WOULD END OCT 1 1994 ON A NEW CORPORATE CALENDAR WE'RE SEEING STRONG GROWTH IN OUR SOFTWARE BUSINESS MR TUCCI SAID FOR FISCAL 1993 ENDED JUNE 30 WANG SAID IT EXPECTS TO REPORT A LOSS OF 199 MILLION AFTER ABOUT 118 MILLION IN RESTRUCTURING AND REORGANIZATION CHARGES REVENUE IS EXPECTED TO BE ABOUT 124 BILLION IN MARCH WANG ESTIMATED THAT FISCAL 1993 REVENUE WOULD BE 125 BILLION TO 13 BILLION FOR FISCAL 1992 WANG HAD A LOSS OF 3566 MILLION OR 210 A SHARE AFTER RESTRUCTURING AND OTHER CHARGES REVENUE WAS 190 BILLION UNDER THE REORGANIZATION PLAN WANG SAID SECURED CREDITORS WOULD BE PAID IN FULL THE 50 MILLION THEY ARE OWED UNSECURED CREDITORS WHO ARE OWED BETWEEN 700 MILLION AND 900 MILLION WOULD BE ISSUED 30 MILLION NEW SHARES CURRENT CLASS B AND CLASS C COMMON STOCKHOLDERS WOULD RECEIVE 93MONTH WARRANTS FOR NEW SHARES THAT IF FULLY EXERCISED WOULD GIVE THEM A 20 STAKE ASSUMING UNSECURED CREDITORS HAVE RECOVERED 95 OF THEIR CLAIMS WANG SAID IT WOULD ALSO OFFER A 40 MILLION PRIVATE PLACEMENT IN 12 EXCHANGEABLE PREFERRED STOCK AND WARRANTS TO PURCHASE 8 OF THE NEW COMPANY EMPLOYEES WOULD BE OFFERED UP TO 125 OF THE REORGANIZED WANG STOCK IN A NEW EMPLOYEEINCENTIVE PROGRAM WANG SAID THE ESTIMATED VALUE OF THE REORGANIZED COMPANY WOULD BE 375 MILLION ADDING THAT IF THE PLAN IS APPROVED THE COMPANY WOULD HAVE 90 MILLION IN DEBT REMAINING C HALL SWAIM A SPOKESMAN FOR THE CREDITORS' COMMITTEE SAID THE COMMITTEE HAS ENDORSED WANG'S PLAN WHICH THE COMPANY HOPES WILL BE APPROVED THIS FALL HE ADDED ONCE THEY GET US THE CREDITORS OFF THEIR BACK THEY'RE BOUND TO DO EVEN BETTER WANG SAID ITS NEW NINEMEMBER BOARD WOULD INCLUDE A DESIGNEE OF THE WANG FAMILY WHO HASN'T BEEN NAMED DAVID BOUCHER CHAIRMAN OF INTERLEAF INC STEPHEN G JERRITTS FORMER CHIEF OPERATING OFFICER OF STORAGE TECHNOLOGY CORP KARL WASSMANN III CHIEF FINANCIAL OFFICER OF KENDALL SQUARE RESEARCH CORP AND JOHN P WHITE OF HARVARD UNIVERSITY WOULD ALSO BE NAMED DIRECTORS FORMER US SEN PAUL TSONGAS AND PETER BROOKE CHAIRMAN OF ADVENT INTERNATIONAL CORP WOULD REMAIN DIRECTORS 9307080047 930708 BUSINESS BRIEF BURLINGTON ROAD HAS PACT TO CONSOLIDATE DISPATCHING OFFICES BURLINGTON NORTHERN INC UNION MEMBERS RATIFIED AN AGREEMENT TO CONSOLIDATE THE RAILROAD'S 440 DISPATCHERS IN FORT WORTH TEXAS HELPING THE COMPANY TO CATCH UP WITH OTHER RAILROADS THAT HAVE CENTRALIZED KEY OPERATING FUNCTIONS BURLINGTON NORTHERN THE NATION'S LARGEST RAILROAD SAID THE CONSOLIDATION FROM SEVEN DISPATCHING OFFICES WOULD OCCUR IN PHASES STARTING NEXT MONTH AND BE COMPLETED BY THE END OF 1995 WHILE FORT WORTHBASED BURLINGTON NORTHERN SAID IT WAS TOO EARLY TO ESTIMATE THE COST SAVINGS FROM THE AGREEMENT SIMILAR CONSOLIDATIONS HAVE PRODUCED TENS OF MILLIONS OF DOLLARS IN ANNUAL PRODUCTIVITY IMPROVEMENTS FOR OTHER RAILROADS ANALYSTS SAID RATIFICATION OF THE AGREEMENT BY 80 OF AFFECTED MEMBERS OF THE AMERICAN TRAIN DISPATCHERS ASSOCIATION CLEARS A MAJOR HURDLE FOR BURLINGTON NORTHERN WHICH RECENTLY HAS MOVED AGGRESSIVELY TO LOWER ITS RAILOPERATING COSTS THE DISPATCHERS' UNION CONFIRMED RATIFICATION OF THE AGREEMENT BURLINGTON IS ADOPTING THE SAME OPERATIONAL STRATEGY AS SEVERAL OTHER RAILROADS NOTABLY UNION PACIFIC CORP AND CSX CORP SAYS GRAEME ANNE LIDGERWOOD AN ANALYST AT FIRST BOSTON CORP MICHAEL LLOYD AN ANALYST AT NATWEST SECURITIES CORP SAID CENTRALIZATION OF BURLINGTON NORTHERN'S DISPATCHING FUNCTIONS WILL IMPROVE COORDINATION INCREASE TRAIN RELIABILITY AND LOWER OPERATING COSTS BURLINGTON NORTHERN SAID THE AGREEMENT WITH THE DISPATCHERS INCLUDES PROVISIONS FOR RELOCATION BENEFITS PRODUCTIVITY IMPROVEMENTS AND ANNUAL PERFORMANCE AWARDS A COMPANY SPOKESMAN SAID THE CONSOLIDATION IS A MULTIYEAR PROJECT AND IT'S PREMATURE AT THIS POINT TO ESTIMATE SAVINGS HE SAID THE COMPANY DOESN'T PLAN TO ELIMINATE DISPATCHER JOBS AS A RESULT OF THE CONSOLIDATION BUT OTHER RAILROADS HAVE REPORTED BIG PRODUCTIVITY IMPROVEMENTS BY CENTRALIZING THEIR DISPATCHING FUNCTIONS A SPOKESMAN FOR UNION PACIFIC CITES ANNUAL SAVINGS OF 22 MILLION SINCE THE RAILROAD CONSOLIDATED 10 REGIONAL OFFICES INTO A SINGLE DISPATCH CENTER IN OMAHA NEB STARTING IN 1989 IN THE PROCESS UNION PACIFIC REDUCED THE NUMBER OF EMPLOYEES IN ITS DISPATCHING OFFICES TO 748 FROM 980 CSX REDUCED ITS NUMBER OF DISPATCHERS TO ABOUT 230 FROM 450 SINCE IT BEGAN TO CONSOLIDATE ITS DISPATCHING OPERATIONS INTO A SINGLE OFFICE IN JACKSONVILLE FLA IN 1989 YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE BURLINGTON NORTHERN COMMON CLOSED AT 5275 OFF 125 CENTS 9307080046 930708 JESUS IN NEW YORK A CHURCH YUPPIES CAN HAVE FAITH IN BY MELANIE KIRKPATRICK NEW YORK MANHATTAN IS A LONG WAY FROM THE BIBLE BELT MANY NO DOUBT WOULD PLACE IT CLOSER TO SODOM AND GOMORRAH BUT WHEREVER YOU LOCATE THIS CITY OF SIN ON A THEOLOGICAL MAP NO ONE IS LIKELY TO MISTAKE IT FOR THE NEW JERUSALEM NO ONE THAT IS EXCEPT PERHAPS THE FOLKS AT REDEEMER PRESBYTERIAN A WILDLY SUCCESSFUL EXPERIMENTAL CHURCH ON MANHATTAN'S UPPER EAST SIDE JUST A FEW BLOCKS FROM THAT YUPPIE TEMPLE BLOOMINGDALE'S IN LESS THAN FOUR YEARS REDEEMER PRESBYTERIAN HAS GROWN FROM A FEW DOZEN PEOPLE GATHERED IN A LOCAL LIVING ROOM TO A CONGREGATION OF 1200 WORSHIPING IN THE HUNTER COLLEGE AUDITORIUM ABOUT 80 ARE SINGLE AND A STRANGER COULD BE FORGIVEN FOR THINKING THAT SOME OF THE SMARTLY TURNED OUT MEN AND WOMEN APPEAR MORE INTERESTED IN FINDING MR OR MS RIGHT THAN IN FINDING GOD I TELL MY FRIENDS IT'S A GREAT PLACE TO MEET MEN CONFIDES ONE YOUNG WOMAN CHEERFULLY IF IT GETS THEM TO CHURCH WHY NOT CHURCHES HAVE BEEN GROWING ALL AROUND THE COUNTRY AS BABY BOOMERS REDISCOVER RELIGION THERE ARE MANY REASONS FOR REDEEMER'S SUCCESS THE RIGHT TIMING A DYNAMIC PASTOR USERFRIENDLY WORSHIP SERVICES COMMUNITY INVOLVEMENT THE SOCIAL SCENE BUT WHAT MAKES ITS SUCCESS MOST SURPRISING IS THAT IN A TOWN THAT PRIDES ITSELF ON BEING ON THE CUTTING EDGE OF INTELLECTUAL FASHION REDEEMER IS AN EVANGELICAL CHURCH AS SUCH IT IS SOMETHING OF A THROWBACK TO OLDTIME RELIGION AMONG ITS TEACHINGS ARE THAT ABORTION IS A SIN THAT HOMOSEXUALS CAN CURE THEMSELVES WITH PRAYER THAT PREMARITAL SEX IS WRONG THE SERMON TAPE ON THAT SUBJECT IS A BIG SELLER AND THAT WIVES WHILE DESERVING OF RESPECT SHOULD BE SUBMISSIVE TO THEIR HUSBANDS REDEEMER'S DENOMINATION THE PRESBYTERIAN CHURCH IN AMERICA DOES NOT ORDAIN WOMEN OR PERMIT THEM TO BE ELDERS THESE IDEAS AREN'T EXACTLY CONVENTIONAL WISDOM IN MANHATTAN BIRTHPLACE OF THE ALTERNATIVE LIFESTYLE REDEEMER'S SENIOR PASTOR THE REV TIMOTHY KELLER RECOGNIZES THAT SUCH TEACHINGS CAN BE STUMBLING BLOCKS FOR MANY PEOPLE AND HE SAYS REDEEMER RESPECTS SUCH DOUBTS THE CHURCH'S FORMAL MEMBERSHIP IS ONLY ABOUT 300 IN PART BECAUSE OF THIS WE'RE FRIENDLY TO DOUBTERS HE SAYS AND AIM TO PROVIDE AN ATMOSPHERE OF EMOTIONAL WARMTH MANY RECOVERING HOMOSEXUALS ATTEND REDEEMER HE SAYS BUT MR KELLER WARNS AGAINST PUTTING TOO MUCH EMPHASIS ON LIFESTYLE ISSUES TOO MANY CHURCHES ARE RIGID HE SAYS WITH HUNDREDS OF RULES THAT OBSCURE JESUS'S BASIC MESSAGE MY JOB IS TO HELP PEOPLE GET TO THE CENTRAL TRUTHS OF CHRISTIANITY IF PEOPLE UNDERSTAND THE BASICS OF CHRISTIANITY THERE WILL BE A CHAIN REACTION AND THEY'LL EVENTUALLY COME TO LIVE A CHRISTIAN LIFE MR KELLER'S LEADERSHIP HAS MUCH TO DO WITH REDEEMER'S SUCCESS A TALL IMPOSING MAN OF 42 WITH A DIGNIFIED DEMEANOR HE SETS THE INTELLECTUAL TONE YOU MIGHT SAY HE SPEAKS THE LANGUAGE OF HIS HIGHLY EDUCATED PROFESSIONAL AUDIENCE AN AUDIENCE THAT PROBABLY REACHES FOR THE REMOTE CONTROL WHEN A TELEVANGELIST COMES ON THE SCREEN HIS SERMONS ARE FULL OF ERUDITE REFERENCES TO ANCIENT GREEK AND HEBREW AND THE HISTORY OF THE EARLY CHRISTIANS REDEEMER'S SUNDAY SERVICES ARE MOSTLY TRADITIONAL BASED ON THE HISTORICAL LITURGY THIS IS SOMEWHAT UNUSUAL IN A CITY WHERE MANY CLERICS GO THROUGH RHETORICAL CONTORTIONS TO AVOID SOUNDING SEXIST OUR FATHER OR MILITANT ONWARD CHRISTIAN SOLDIERS THAT SAID REDEEMER DISCOURAGES THE RAISING OF HANDS AND SHOUTS OF PRAISE THE LORD THAT ARE FOUND IN MANY EVANGELICAL CHURCHES NEW YORKERS GET ZIPPED OUT BY SUCH EMOTIONAL DISPLAYS MR KELLER SAYS ANOTHER FEATURE THAT DISTINGUISHES REDEEMER FROM MOST CHURCHES AND SYNAGOGUES IN NEW YORK IS ITS STAUNCHLY NONPOLITICAL STANCE IN THE CONTROVERSIAL SCHOOL BOARD ELECTIONS THIS SPRING FOR EXAMPLE WHICH CENTERED ON SEX EDUCATION IN THE SCHOOLS MR KELLER WOULD NOT EXPRESS AN OPINION I WON'T PRESUME TO TELL PEOPLE HOW TO VOTE HE SAYS BECAUSE OF MY BELIEFS ON HOMOSEXUALITY AND ABORTION I LOOK LIKE A CULTURAL CONSERVATIVE BUT POLITICALLY I'M RADICALLY UNSURE THAT THIS NONPOLITICAL APPROACH WORKS IS BORNE OUT BY THE DIVERSITY OF POLITICAL VIEWS AT REDEEMER WHERE A FORMER REAGAN AIDE AND A MADONNA SONGWRITER HAVE SHARED A PEW LOTS OF CHURCHES HAVE SO ALLIED THEMSELVES WITH LIBERAL POLITICAL CAUSES OR CONSERVATIVE POLITICAL CAUSES THAT THEY EXCLUDE PEOPLE AT THE FRONT DOOR MR KELLER SAYS LIKE OTHER NEW YORK CHURCHES REDEEMER HAS AN EXTENSIVE OUTREACH PROGRAM AND MANY PEOPLE ARE DRAWN TO REDEEMER IN PART BECAUSE THEY ARE LOOKING FOR VOLUNTEER OPPORTUNITIES PART OF THE CHURCH'S STATED MISSION IS TO MAKE NEW YORK A BETTER PLACE TO THAT END IT WANTS TO PLANT NEW CHURCHES THE BEST THING FOR THE BRONX IS NOT 5000 NEW POLICEMEN BUT 5000 NEW CHURCHES SAYS MR KELLER WHATEVER THE REASONS FOR ITS SUCCESS REDEEMER CLEARLY SPEAKS TO THE HEARTS AND MINDS OF MANY YOUNG NEW YORKERS WHO ARE SEARCHING FOR A SPIRITUAL HOME FOR THOSE WHO BELIEVE THAT THE MAINLINE PROTESTANT CHURCHES HAVE BEEN CAPTURED BY LIBERALS AND THE FUNDAMENTALIST CHURCHES BY CONSERVATIVES REDEEMER'S SUCCESS IS PROOF THAT CHRISTIANITY'S BASIC MESSAGE STILL SELLS THAT IT PROVIDES A MORAL FRAMEWORK THAT WORKS AS WELL TODAY AS IT DID 2000 YEARS AGO ONE OF REDEEMER'S FOUNDING MEMBERS PUT IT SIMPLY ON A RECENT SUNDAY AFTERNOON A FEW MOMENTS AFTER THE FINAL STRAINS OF THE CLOSING HYMN AM I A SOLDIER OF THE CROSS WITH A BROAD SMILE ON HER FACE SHE POSES A QUESTION TO WHICH SHE ALREADY KNOWS THE ANSWER WHO'D HAVE THOUGHT YOU'D FIND JESUS IN NEW YORK MS KIRKPATRICK IS ASSISTANT EDITOR OF THE JOURNAL'S EDITORIAL PAGE 9307080045 930708 WHO'S NEWS EDISTO RESOURCES CORP NAMES NEW DIRECTORS DALLAS EDISTO RESOURCES CORP FOLLOWING LAST WEEK'S MOVE TO REPLACE ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER CONTINUED ITS MANAGEMENT RESTRUCTURING BY NAMING A NEW BOARD OF DIRECTORS THE OIL AND GAS COMPANY RECENTLY EMERGED FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS AND A SPOKESMAN SAID THE CHANGES IN MANAGEMENT ARE AN EFFORT TO MAKE THE COMPANY PROFITABLE IN ADDITION TO NEWLY NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER MICHAEL Y MCGOVERN THE NEW DIRECTORS ARE VERNON T JONES 64 YEARS OLD A FORMER WILLIAMS COS EXECUTIVE JOSEPH E REID 63 AN OIL AND GAS CONSULTANT JOHN G GRAHAM 54 SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF GENERAL PUBLIC UTILITIES CORP AND TIMOTHY ANDREWS 33 A VICE PRESIDENT AT TRUST CO OF THE WEST THE NEW BOARD HAS FIVE MEMBERS THE COMPANY DID NOT NAME A REPLACEMENT FOR A SIXTH DIRECTOR DAVID N BROUSSARD 44 WHO RESIGNED FROM THE BOARD AND AS PRESIDENT AND CHIEF OPERATING OFFICER ON FRIDAY MR MCGOVERN WILL ASSUME THE RESPONSIBILITIES OF BOTH MR BROUSSARD AND FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER JAMES R MCNAB JR G BRYAN DUTT AN ANALYST AT HOWARD WEIL LABOUISSE FRIEDRICHS INC SAID THE PEOPLE THEY'VE APPOINTED SO FAR ARE VERY CREDIBLE EDISTO WHICH HAS SUBSTANTIAL GAS HOLDINGS IN THE GULF OF MEXICO COULD EXPERIENCE A REBIRTH UNDER NEW MANAGEMENT MR DUTT SAID 9307080044 930708 BUSINESS BRIEF MUELLER INDUSTRIES INC MAKER OF COPPER TUBES PLANS SECONDARY PUBLIC OFFERING MUELLER INDUSTRIES INC FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED SECONDARY PUBLIC OFFERING OF 33 MILLION COMMON SHARES HELD BY HIGHSTAKES INVESTOR GEORGE SOROS'S QUANTUM FUND NV THE PROPOSED OFFERING BY MR SOROS QUELLED ACQUISITION RUMORS ON WALL STREET AND SENT THE COPPERTUBE MANUFACTURER'S STOCK INTO A TAILSPIN CLOSING AT 28625 A SHARE DOWN 5375 IN NEW YORK STOCK EXCHANGE TRADING ANALYSTS REASONED THAT MR SOROS WOULDN'T BE SELLING MUELLER STOCK IF AN ACQUISITION WAS IMMINENT IF THE OFFERING IS COMPLETED MR SOROS'S QUANTUM FUND WILL STILL HOLD ABOUT 15 MILLION SHARES OR A 15 STAKE IN THE WICHITA KAN CONCERN MUELLER WILL RECEIVE NONE OF THE PROCEEDS OF THE OFFERING TO BE MANAGED BY A GROUP LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE UNDERWRITERS HAVE AN OPTION TO PURCHASE AN ADDITIONAL 487500 SHARES FROM THE FUND TO COVER ANY OVERALLOTMENTS WHICH IF EXERCISED WOULD REDUCE QUANTUM'S STAKE TO 10 9307080043 930708 LEISURE & ARTS BESTSELLERS COMPILED BY PUBLISHERS WEEKLY DATA FROM LARGECITY BOOKSTORES BOOKSTORE CHAINS AND LOCAL BESTSELLER LISTS ACROSS THE US COPYRIGHT 1993 REED PUBLISHING USA 9307080040 930708 UNITED AIR SAYS TRAFFIC GROWTH SLOWED SUBSTANTIALLY IN JUNE SECTOR STOCKS SLIP BY JAMISON S PRICE STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO UNITED AIRLINES SAID ITS TRAFFIC GROWTH SLOWED SUBSTANTIALLY IN JUNE AND ALSO WARNED THAT A KEY MEASURE OF PROFITABILITY CONTINUED TO BE WEAKER THAN ANTICIPATED THE UAL CORP UNIT'S ANNOUNCEMENT THAT JUNE TRAFFIC ROSE 53 FROM A YEAR AGO COMPARED WITH STRONGER INCREASES IN PREVIOUS MONTHS THAT LED TO A 144 TOTAL INCREASE FOR THE FIRST HALF OF 1993 HELPED SEND AIRLINE STOCKS LOWER FOR THE SECOND DAY IN A ROW UAL'S TRAFFIC WAS UP 15 IN MAY AND 175 IN APRIL THE DOW JONES INDEX OF 20 TRANSPORTATION STOCKS SLID 188 YESTERDAY LED BY A DECLINE IN MOST AIRLINE STOCKS AMONG THEM ON THE NEW YORK STOCK EXCHANGE UAL DROPPED 1 TO 124375 AMR CORP PARENT OF AMERICAN AIRLINES FELL 150 TO 59625 AND USAIR GROUP SLIPPED 50 CENTS TO 15375 ON TUESDAY THE TRANSPORTATION INDEX FELL 156 REFLECTING IN PART A SELLOFF OF AIRLINE STOCKS AFTER AMERICAN AIRLINES SAID ITS JUNE TRAFFIC SLIPPED 3 AT LEAST ONE AIRLINE THOUGH APPEARS TO BE BUCKING THE TREND SOUTHWEST AIRLINES A LOWCOST CARRIER THAT HAS GIVEN ITS LARGER RIVALS FITS WITH LOW FARES SAID ITS TRAFFIC SURGED 26 IN JUNE FROM A YEAR AGO AND THAT ITS LOAD FACTOR CLIMBED TO 712 FROM 649 IN JUNE 1992 WHILE UNITED CONTENDED THAT ITS TRAFFIC SYSTEMWIDE REMAINS QUITE STRONG THE WEAK JUNE INCREASE OFFERED THE LATEST SIGN THAT AN INDUSTRY RESURGENCE REMAINS ELUSIVE FURTHERMORE UNITED SAID ITS PASSENGER YIELDS A VITAL MEASURE OF HOW MUCH REVENUE EACH PASSENGER PAYS PER MILECONTINUE TO BE WEAKER THAN ANTICIPATED IT DIDN'T ELABORATE THE CARRIER ALSO NOTED THAT A 91 BOOST IN THE NUMBER OF SEATS AVAILABLE LAST MONTH CONTRIBUTED TO A DECLINE TO 704 FROM 73 IN ITS LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED UNITED ATTRIBUTED THE JUNE DROP IN ITS LOAD FACTOR TO THE FACT THAT DOMESTIC TRAFFIC A YEAR AGO WAS UNUSUALLY HIGH AS A RESULT OF LAST SUMMER'S DEEP PROMOTIONAL FARE DISCOUNTS INDUSTRY ANALYSTS WERE SOMEWHAT HEARTENED THAT UNITED'S LATEST TRAFFIC FIGURES WEREN'T AS BAD AS AMERICAN'S RESULTS THE GOOD NEWS IS UNLIKE AMERICAN UNITED CAME IN CLOSER TO THE EXPECTATION ON THE STREET SAYS THOMAS LONGMAN AN ANALYST FOR BEAR STEARNS & CO US IN JUNE UNITED'S DOMESTIC TRAFFIC INCREASED 26 DESPITE A 105 INCREASE IN CAPACITY UNITED EXPERIENCED LARGER GAINS IN ITS EUROPEAN AND LATIN AMERICAN ROUTES EUROPEAN TRAFFIC INCREASED 201 ON AN 88 INCREASE IN CAPACITY WHILE ITS LATIN AMERICAN TRAFFIC JUMPED 393 ON A 34 INCREASE IN CAPACITY THE COMPANY'S EXTENSIVE PACIFIC ROUTES WHICH HAVE BEEN HURT BY THE FLACCID JAPANESE ECONOMY AND INCREASED COMPETITION WITHIN ASIA AND OVER THE PACIFIC SAW A 14 INCREASE IN TRAFFIC WHILE THE NUMBER OF AVAILABLE SEAT MILES WERE UNCHANGED FOR THE MONTH UNITED RECORDED TRAFFIC OF 909 BILLION REVENUE PASSENGER MILES UP FROM THE YEAREARLIER 863 BILLION A REVENUE PASSENGER MILE IS ONE PASSENGER FLOWN ONE MILE SO FAR THIS YEAR UNITED'S TRAFFIC IS UP 144 TO 4766 BILLION REVENUE PASSENGER MILES FROM 4167 BILLION THE YEARTODATE LOAD FACTOR ROSE 14 PERCENTAGE POINTS TO 656 LATE LAST MONTH UNITED SAID IT PLANNED TO CUT CAPACITY IN ITS DOMESTIC ROUTE NETWORK AND TO SLOW ITS OVERSEAS EXPANSION THE AIRLINE ALSO SAID IT WILL DISCONTINUE SERVICE SEPT 8 AT SIX US LOCATIONS AS PART OF ITS COSTCUTTING STRATEGY 9307080039 930708 CASTROL FILES LAWSUIT AGAINST TRADE GROUP OVER LABELING PLAN WAYNE NJ CASTROL INC SAID IT FILED A LAWSUIT TO PREVENT THE OIL INDUSTRY'S LARGEST TRADE ASSOCIATION FROM IMPLEMENTING A NEW MOTOR OIL LABELING SYSTEM THAT USES AN INACCURATE AND OUTMODED TEST FOR FUEL ECONOMY THE INDEPENDENT MARKETER OF MOTOR OIL A US SUBSIDIARY OF BURMAH CASTROL PLC LONDON FILED SUIT AGAINST THE AMERICAN PETROLEUM INSTITUTE OF WHICH IT IS A MEMBER IN NEW YORK FEDERAL COURT CASTROL CLAIMS THE API WANTS TO TEST MOTOR OILS FOR THEIR EFFECT ON AUTOMOBILE FUEL ECONOMY BY USING 1982MODEL ENGINES THAT ARE UNREPRESENTATIVE OF MODERN ENGINE DESIGN UNDER THE API'S PLANNED STARBURST LABELING SYSTEM SCHEDULED TO BEGIN AUG 1 PRODUCTS THAT PASS THE API'S TEST FOR FUEL ECONOMY WOULD PUT A SPECIAL SYMBOL ON THEIR LABELS CASTROL SAID IT'S A VERY IMPRESSIVELOOKING CERTIFICATE AND WE THINK IT MIGHT HAVE SIGNIFICANT MARKET IMPACT SAID CASTROL ATTORNEY LEWIS R CLAYTON OF THE MANHATTAN LAW FIRM PAUL WEISS RIFKIND WHARTON & GARRISON CASTROL BELIEVES ITS OIL WILL NOT PASS THE TEST BUT DOESN'T WANT TO REFORMULATE THE PRODUCT BECAUSE IT BELIEVES THE CURRENT FORMULA PROVIDES TOP PROTECTION AGAINST ENGINE WEAR MR CLAYTON SAID THE API IN A STATEMENT DENIED THAT THE LABELING PROGRAM WILL MISLEAD THE PUBLIC OR VIOLATE THE LAW CASTROL ITSELF USES API'S TESTS AND SYMBOLS FOR ENERGYSAVINGS CLAIMS AND THE CONTENTIONS IN CASTROL'S COMPLAINT HAVE BEEN PREVIOUSLY CONSIDERED AND REJECTED BY HIGHLY REPUTABLE AND KNOWLEDGEABLE TECHNICAL COMMITTEES THE API SAID 9307080038 930708 CREDIT RATINGS MOODY'S MAY LOWER RATINGS OF TOSHIBA MITSUBISHI ELECTRIC TOKYO MOODY'S INVESTORS SERVICE INC SAID IT MAY DOWNGRADE LONGTERM DEBT RATINGS OF TWO JAPANESE MAKERS OF CONSUMER ELECTRONICS BECAUSE OF CONCERN ABOUT THE COMPANIES' EARNINGS THE MOODY'S REVIEW AFFECTS TOSHIBA CORP AND ITS SUBSIDIARIES TOSHIBA AMERICA INC AND TOSHIBA INTERNATIONAL FINANCE BV AND MITSUBISHI ELECTRIC CORP AND ITS SUBSIDIARIES MITSUBISHI ELECTRIC FINANCE UK PLC AND MITSUBISHI ELECTRIC FINANCE AMERICA INC BOTH TOSHIBA AND MITSUBISHI HAVE RATINGS OF DOUBLEA3 FOR SENIOR UNSECURED DEBT COMMERCIAL PAPER RATINGS AREN'T AFFECTED MOODY'S SAID DOWNWARD PRESSURE ON TOSHIBA'S EARNINGS AND FREE CASH FLOW FROM ITS INFORMATION AND COMMUNICATIONS SYSTEMS ELECTRONICS DEVICES AND CONSUMER PRODUCTS MAY MORE THAN OFFSET EXPECTATIONS FOR IMPROVED STRENGTH IN THE COMPANY'S HEAVY ELECTRICAL APPARATUS SEGMENT ABOUT 21 BILLION OF LONGTERM DEBT IS AFFECTED MOODY'S ATTRIBUTED THE REVIEW OF MITSUBISHI'S DEBT TO CONCERN ABOUT LOSSES FROM ITS BUSINESSES IN INFORMATION AND COMMUNICATIONS AND ELECTRONIC DEVICES THE AGENCY SAID SLUGGISH CONSUMER SPENDING COULD WORSEN AND HURT OTHER CORE MITSUBISHI SECTORS ABOUT 11 BILLION OF LONGTERM DEBT IS AFFECTED MOODY'S SAID BOTH REVIEWS WILL FOCUS ON WHETHER THE COMPANIES CAN IMPROVE MARGINS AND CASH FLOW AND REDUCE DEBT TOSHIBA AND MITSUBISHI ARE AMONG THE LARGEST JAPANESE INTEGRATED ELECTRICAL AND ELECTRONICEQUIPMENT MANUFACTURERS 9307080037 930708 WHO'S NEWS GE CAPITAL'S BERGER RESIGNS POST RETURNS TO ODYSSEY PARTNERS NEW YORK STEPHEN BERGER AN EXECUTIVE VICE PRESIDENT OF GE CAPITAL CORP AND ONE OF THE COMPANY'S TOP SIX OFFICERS RESIGNED TO REJOIN ODYSSEY PARTNERS A PRIVATE INVESTMENT PARTNERSHIP WHERE HE ONCE WORKED MR BERGER 53 YEARS OLD A FORMER EXECUTIVE DIRECTOR OF THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY JOINED GE CAPITAL A UNIT OF GENERAL ELECTRIC CO IN THE SUMMER OF 1990 INITIALLY HE OVERSAW GE CAPITAL'S FINANCIAL GUARANTY INSURANCE CO A MUNICIPAL BOND INSURANCE UNIT BEFORE RESIGNING HE WAS RESPONSIBLE FOR A NUMBER OF GE CAPITAL'S BUSINESSES INCLUDING CORPORATE FINANCE GENERAL ELECTRIC RAILCAR SERVICE CORP TRANSPORT INTERNATIONAL POOL FGIC AND CORPORATE RESTRUCTURINGS AT NEW YORKBASED ODYSSEY WHERE HE WORKED IN THE EARLY 1980S MR BERGER IS ONE OF SIX GENERAL PARTNERS AND WILL OVERSEE AN EXPANSION OF THE FIRM'S CORPORATE ACQUISITIONS AREA ODYSSEY WHICH HAS 2 BILLION UNDER MANAGEMENT INVESTS IN PUBLIC MARKETABLE SECURITIES AND PRIVATE CORPORATE INVESTMENTS IT TOOK PRIVATE A NUMBER OF PUBLICLY OWNED CORPORATIONS IN THE 1980S MR BERGER SAID HIS DEPARTURE WAS IN SOME WAYS LIKE GOING BACK HOME AND SAID HE LEFT BECAUSE OF THE OPPORTUNITY AT ODYSSEY A GE CAPITAL SPOKESMAN SAID WE WISH HIM WELL IN THE MID1970S MR BERGER WAS EXECUTIVE DIRECTOR OF THE STATE AGENCY THAT DESIGNED A FINANCIAL PLAN ENABLING NEW YORK CITY TO REGAIN ITS CREDIT STANDING DURING FISCAL CRISIS 9307080036 930708 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG COMPUTER MAKERS ARE SLOWLY REDESIGNING THE BASIC PIECES OF THEIR SYSTEMS TO MAKE THEM MORE ERGONOMIC THE IDEA IS THAT BETTER FITTING THE NATURAL POSITIONS AND MOTIONS OF THE HUMAN FORM WILL HELP CURB THE RISING NUMBER OF HEALTH COMPLAINTS AMONG HEAVY COMPUTER USERS ESPECIALLY REPETITIVE STRESS INJURIES THAT AFFECT THE WRIST AND ARM I'M NO HEALTH EXPERT AND I DON'T KNOW OF ANY SPECIFIC DESIGNS FOR KEYBOARDS OR OTHER COMPONENTS THAT BEAR SOME UNIVERSAL DOCTORS' SEAL OF APPROVAL DIFFERENT THINGS ARE LIKELY TO WORK FOR DIFFERENT PEOPLE BUT ERGONOMIC COMPUTING IS SO IMPORTANT THAT AS SIGNIFICANT NEW DESIGNS APPEAR THEY DESERVE MENTION FROM TIME TO TIME LATELY THE REDESIGNERS HAVE TURNED THEIR ATTENTION TO THE HUMBLE MOUSE THE HANDHELD POINTING DEVICE THAT MOVES A CURSOR AROUND THE SCREEN AND IS A CRITICAL PART OF MODERN GRAPHICAL COMPUTING SYSTEMS SUCH AS MICROSOFT'S WINDOWS AND APPLE COMPUTER'S MACINTOSH APPLE'S MOUSE HAS LONG BEEN AN ANGULAR PIECE OF PLASTIC THAT DIDN'T CONFORM TO THE CURVED ASYMMETRICAL SHAPE OF THE HUMAN HAND MICROSOFT'S STANDARD VERSION WAS CURVIER BUT LIKE APPLE'S DESIGN DID LITTLE TO FIT THE CONCAVE SHAPE OF THE PALM THESE OLD DESIGNS FORCE THE FINGERS TO BE POISED IN AN ARCHED POSITION RATHER THAN LETTING THEM LIE FLAT ON THE SURFACE OF THE DEVICE THAT TENSES MUSCLES IN THE HAND WRIST AND FOREARM LEADING TO DISCOMFORT AMONG SOME HEAVY MICE USERS NOW BOTH BIG COMPANIES HAVE COME OUT WITH MORE ROUNDED DESIGNS MEANT TO SUPPORT THE PALM AND FINGERS SO A USER CAN WORK THE BUTTONS WHILE THE HAND IS IN A MORE NATURAL RESTING POSITION THE LEADING INDEPENDENT MOUSE MAKER LOGITECH OF FREMONT CALIF HAS ALSO INTRODUCED A DESIGN WITH THE SAME GOAL AND ITS PRODUCT HAS ANOTHER BIG ADVANTAGE IT'S CORDLESS SO THERE'S NO WIRE TO GET TANGLED OR RESTRICT MOVEMENTS THE NEW MICROSOFT AND APPLE MODELS SELL FOR AROUND 79 EACH THOUGH THE LATTER IS INCLUDED WITH EVERY NEW MACINTOSH THE NEW LOGITECH MOUSEMAN CORDLESS SELLS FOR AROUND 99 ALL CAN BE USED WITH OLDER COMPUTERS THAT ORIGINALLY CAME WITH EARLIER OR DIFFERENT MOUSE DESIGNS I'VE BEEN GIVING ALL THREE AN EXTENSIVE WORKOUT AND I FOUND THEM ALL PRETTY COMFORTABLE AND EFFICIENT MY FAVORITE OF THE BUNCH THOUGH IS THE LOGITECH MOUSEMAN CORDLESS WHICH REPLACES AN OLDER WIRELESS MODEL IT DOESN'T LOOK LIKE ANY OTHER MOUSE IT'S SHAPED ROUGHLY LIKE AN INVERTED TRIANGLE NARROW AT THE BASE WIDE AT THE TOP WITH ROUNDED EDGES AND A SLOPING SURFACE ALONG THE TOP ARE THREE BUTTONS EACH WITH A GROOVE OR DEPRESSION INTO WHICH A FINGER NESTS COMFORTABLY IT'S LARGER THAN MOST MICE AND THE SURFACE OF THE MAIN BODY RISES GENTLY TO FIT INTO THE PALM INSTEAD OF TRAILING A CORD WHICH CAN GET IN YOUR WAY THE LOGITECH RODENT IS LINKED TO THE COMPUTER BY LOWPOWER RADIO WAVES YOU JUST CONNECT A LITTLE TRANSMITTER ABOUT THE SIZE OF A CIGARETTE PACK TO YOUR PC'S NORMAL MOUSE PORT AND SET IT ANYWHERE WITHIN SIX FEET OF THE MOUSE IT DOESN'T HAVE TO BE IN SIGHT AFTER A LITTLE EXPERIMENTING WITH LOCATIONS AND SETTINGS I FOUND THE CORDLESS MOUSE WORKED BETTER THAN A STANDARD ONE MOUSE MOVEMENTS ARE SWIFT AND CRISP WITH NO TIME LAG AS WITH OTHER LOGITECH MODELS THIS ONE HAS THREE BUTTONS RATHER THAN TWO THE MIDDLE AND RIGHT ONES CAN BE PROGRAMMED TO PERFORM SPECIAL FUNCTIONS LIKE SIMULATING A DOUBLE CLICK TO OPEN OR LAUNCH A FILE MICROSOFT'S NEW MOUSE WAS A CLOSE SECOND IN MY VIEW IT'S A BIT BULKY AND HAS A DRAMATIC ASYMMETRY WITH A LEFTWARD CURVE AT THE BASE THAT GIVES THE WHOLE THING ROUGHLY THE SHAPE OF THE LETTER J BUT IT'S ALSO COMFORTABLE AND FITS SNUGLY INTO THE PALM THE MICROSOFT MODEL ISN'T CORDLESS AND LACKS AN EXTRA BUTTON BUT IT HAS CLEVER SOFTWARE IN ADDITION TO SUCH LONGSTANDARD FEATURES AS LETTING USERS REGULATE THE SPEED AND SENSITIVITY OF THE MOUSE THE NEW MICROSOFT SOFTWARE ALLOWS YOU TO CHANGE THE SHAPE AND COLOR OF THE CURSOR MAGNIFY TEXT AROUND THE CURSOR AND HAVE THE CURSOR MOVE AUTOMATICALLY ONTO AN ONSCREEN BUTTON YOU'RE LIKELY TO SELECT LOGITECH PLANS TO SHIP ITS OWN NEW SOFTWARE IN AUGUST THAT WILL OFFER SOME BUT NOT ALL OF THE NEW FUNCTIONS APPLE'S MOUSE THE ONLY ONE OF THE THREE THAT WORKS ON A MACINTOSH IS MUCH LESS AMBITIOUS THE WEAKEST OF THE THREE THOUGH IT IS NOW ROUNDED AND FEATURES A TOP BULGE TO FIT THE PALM IT IS STILL SYMMETRICAL THOUGH THE HAND ISN'T MOREOVER LIKE SOME OTHER ONCEREVOLUTIONARY ELEMENTS OF APPLE'S SYSTEM SOFTWARE THE PROGRAM FOR CONTROLLING THE MOUSE HASN'T CHANGED MUCH IN YEARS AND NOW LOOKS PRIMITIVE COMPARED WITH ITS COMPETITORS' OFFERINGS ALL YOU CAN DO WITH IT IS ADJUST SPEED AND SENSITIVITY ONE ADVANTAGE APPLE'S BORING SYMMETRICAL MOUSE DOES HAVE IS THAT IT WORKS AS WELL FOR LEFTHANDED AS FOR RIGHTHANDED USERS MICROSOFT'S AND LOGITECH'S MICE ARE CLEARLY BIASED TOWARD RIGHTIES LEFTHANDERS I CONSULTED FOUND THE LOGITECH MODEL HARD TO USE BECAUSE IT LED THEM TO OPERATE THE LEFT MOSTUSED BUTTON WITH THE RELATIVELY CLUMSY RING FINGER THE MICROSOFT MODEL WORKED A BIT BETTER FOR THEM SINCE ITS LEFT BUTTON COULD MORE EASILY BE OPERATED WITH THE MIDDLE FINGER I ALSO DISCOVERED THAT SOME PEOPLE WITH SMALL HANDS INCLUDING MANY WOMEN FIND THESE LONGER BULKIER MICE LESS COMFORTABLE THAN I DID STILL THE THREE COMPANIES HAVE BUILT BETTER MICE AND I EXPECT THAT MANY USERS AT LEAST THOSE WHO ARE RIGHTHANDED MALES WILL BEAT A PATH TO THEIR DOORS 9307080035 930708 ARBOR DRUGS SHARES DROP ON US INQUIRY OF COMPANY PRACTICE TROY MICH ARBOR DRUGS INC STOCK PLUNGED 23 YESTERDAY IN OVERTHECOUNTER TRADING ON NEWS THAT A US ATTORNEY IN MICHIGAN IS INVESTIGATING ITS THIRDPARTY REIMBURSEMENT PRACTICES FOR POSSIBLE CRIMINAL VIOLATIONS THE DRUGSTORE CHAIN OPERATOR'S STOCK CLOSED AT 15875 DOWN 4875 FROM 2075 ARBOR SAID IN A PREPARED STATEMENT THAT ITS REIMBURSEMENT PRACTICES HAVE BEEN UNDER REVIEW BY PRIVATELY HELD HEALTHCARE INSURER BLUE CROSS & BLUE SHIELD OF MICHIGAN ARBOR SAID BLUE CROSS LAST WEEK ASKED THE COMPANY TO REIMBURSE IT MORE THAN 17 MILLION TO SETTLE CLAIMS THAT THE COMPANY FOR SEVERAL YEARS RECEIVED REIMBURSEMENT IN EXCESS OF THOSE PROVIDED FOR IN AGREEMENTS WITH BLUE CROSS ARBOR SAID BLUE CROSS ALSO TOLD THE COMPANY THAT IT MUST CHANGE ITS FUTURE BILLING PRACTICES A BLUE CROSS SPOKESWOMAN SAID THE COMPANY WOULDN'T ELABORATE ON ITS PRELIMINARY FINDINGS THE IMPACT OF THE MATTER ON ARBOR'S EARNINGS CAN'T BE DETERMINED AT THIS TIME ARBOR SAID IN THE STATEMENT BUT A CHARGE OF 17 MILLION AGAINST EARNINGS COULD WIPE OUT A YEAR'S PROFIT ARBOR WHICH OPERATES 138 STORES ALL IN MICHIGAN POSTED NET INCOME OF 129 MILLION OR 80 CENTS A SHARE FOR THE FIRST NINE MONTHS OF THE CURRENT FISCAL YEAR THE RESULTS INCLUDE A 677000 CHARGE RELATED TO A LEASE DISPUTE THE COMPANY DISAGREES WITH THE POSITIONS TAKEN BY BLUE CROSS ARBOR SAID IN THE STATEMENT THE COMPANY DOESN'T BELIEVE THAT IT HAS ENGAGED IN ANY CONDUCT THAT SHOULD RESULT IN CRIMINAL CHARGES BEING BROUGHT 9307080034 930708 FOREIGN EXCHANGE YEN CLIMBS AGAINST DOLLAR AS OFFICIAL IN JAPAN SAYS ITS RISE CAN BE ENDURED BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR FELL AGAINST THE YEN WEDNESDAY AFTER AN UNNAMED JAPANESE OFFICIAL SAID JAPANESE EXPORTERS COULD WITHSTAND A FURTHER APPRECIATION OF THE YEN THE DOLLAR WAS FLAT TO FIRMER AGAINST OTHER MAJOR CURRENCIES IN LETHARGIC LARGELY NEWSLESS DEALINGS MARKET PARTICIPANTS SAID LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17065 MARKS UP SLIGHTLY FROM 17050 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY WAS CHANGING HANDS AT 10765 YEN DOWN FROM 10880 YEN STERLING WAS TRADING AT 14935 DOWN FROM 15030 IN TOKYO MIDDAY THURSDAY THE DOLLAR WAS TRADING AT 10715 YEN AND 17020 MARKS THE JAPANESE OFFICIAL WHO SPOKE ON CONDITION OF ANONYMITY SAID PREDICTIONS FROM PRIVATE RESEARCH GROUPS WHO FIND THE THRESHOLD LINE FOR JAPANESE EXPORTER PROFITABILITY AT 110 YEN TO THE DOLLAR PROBABLY ARE EXAGGERATED HE SAID HE BELIEVES SUCH A THRESHOLD LIES BETWEEN 95105 YEN TO THE DOLLAR THE DOLLAR HAD MOVED NARROWLY AGAINST ITS JAPANESE COUNTERPART UNTIL THE REMARKS WHICH CAME LATE IN ASIAN TRADING BUT IT TUMBLED MORE THAN ONE YEN IN THE FOLLOWING HALFHOUR THE COMMENTS SEEMED BY IMPLICATION TO CONCEDE TO A STRONGER YEN POLICY SAID CHRISTOPHER S BOURDAIN A CORPORATE TRADER AT CREDIT SUISSE INDICATIONS THE CLINTON ADMINISTRATION FAVORS A STRONG YEN AS TOOL FOR REDUCTION OF JAPAN'S BULGING TRADE SURPLUSES HAVE BEEN AT THE CORE OF THE YEN'S NEARLY 15 APPRECIATION AGAINST THE DOLLAR SINCE FEBRUARY TRADERS NOTED THE JAPANESE GOVERNMENT THROUGH STATEMENTS AND MARKET INTERVENTION HAS ATTEMPTED TO HALT THE CURRENCY'S ADVANCE THE LATEST COMMENTS WOULD APPEAR TO REPRESENT SOMETHING OF A SHIFT IN POLICY OR AT LEAST A BREAK IN THE RELATIVE UNITY OF JAPANESE COMMENTS ABOUT THE YEN'S STRENGTH TRADERS SAID BEYOND THE POSSIBLE BROADER IMPLICATIONS OF THE OFFICIAL'S STATEMENTS THERE WAS ALSO A MORE IMMEDIATE REASON FOR THEIR IMPACT SAID GABRIELE SCHMITT A TRADER AT BANK OF NEW YORK GIVEN THE ABSENCE OF NEWS THE MARKET FACED WEDNESDAY THE COMMENTS PROVIDED A GOOD TARGET FOR THE YEN SHE SAID BUT THE REMARKS DREW NO RESPONSE FROM OTHER JAPANESE OFFICIALS AND THUS THE STORY'S IMPACT FADED SAID RICHARD BARNETT CHIEF DEALER AT STANDARD CHARTERED BANK PLC ADDITIONALLY THE DOLLAR FOUND GOOD TECHNICAL SUPPORT AT ITS INTRADAY LOWS JUST BENEATH 107 YEN PLAYERS SAID THE DOLLAR THEN DRIFTED SLIGHTLY HIGHER VS THE YEN IN THE REMAINDER OF THE DAY IF YOU CAN'T TAKE IT IN ONE DIRECTION THEN YOU TRY TO BOUNCE IT BACK THE OTHER WAY MS SCHMITT SAID AGAINST THE MARK THE DOLLAR'S STRENGTH STEMMED MAINLY FROM A ROUND OF POSITION SQUARING NEAR THE CLOSE OF EUROPEAN TRADING MS SCHMITT SAID THE DOLLAR BUYING WASN'T OF NOTABLE PROPORTIONS BUT IT REFLECTS THE LACK OF APPETITE FOR OTHER CURRENCIES RIGHT NOW SHE SAID BECAUSE OF MARKET EXPECTATIONS FOR CONTINUING INTEREST RATE CUTS IN MUCH OF EUROPE AND POSSIBLY JAPAN THERE'S NOT MUCH OUT THERE TO BUY SHE ADDED COMMENTS FROM TWO TOP GERMAN OFFICIALS COUNTERBALANCED EACH OTHER AND THUS HAD LITTLE OVERALL IMPACT PARTICIPANTS SAID GERMAN CHANCELLOR HELMUT KOHL DESCRIBED THE STABILITY OF THE MARK AS HIS HIGHEST PRIORITY ACCORDING TO A JAPANESE FINANCE MINISTRY OFFICIAL MR KOHL WAS SAID TO HAVE MADE THE REMARK AT A MEETING WITH JAPANESE PRIME MINISTER KIICHI MIYAZAWA AT THE TOKYO SUMMIT OF THE GROUP OF SEVEN MAJOR INDUSTRIALIZED NATIONS THE COMMENT HELPED SUPPORT THE MARK MODESTLY AS IT SEEMED TO INDICATE GERMAN INTEREST RATES WON'T DROP QUICKLY PLAYERS SAID BUT REMARKS FROM GERMAN ECONOMICS MINISTER GUENTER REXRODT OFFSET THAT SUPPORT MR BOURDAIN OF CREDIT SUISSE SAID IN A NEWSPAPER INTERVIEW MR REXRODT SAID HE HAD NO PROBLEM WITH THE MARK'S RECENT WEAKNESS AGAINST THE DOLLAR AND ADDED THAT IT WOULD HELP BOOST GERMAN EXPORTS IN OTHER TRADING THURSDAY STERLING FELL AGAINST BOTH THE DOLLAR AND MARK THE FAILURE OF VARIOUS TECHNICAL SUPPORT LEVELS AND RENEWED SPECULATION ABOUT POSSIBLE UK INTEREST RATE CUTS CONTRIBUTED TO THE WEAKNESS MS SCHMITT SAID LATE WEDNESDAY IN NEW YORK THE POUND TRADED AT 25487 MARKS DOWN FROM 25618 MARKS TUESDAY MEANWHILE THE AUSTRALIAN DOLLAR FIRMED WEDNESDAY ON THE BACK OF RECENTLY SURGING PRECIOUS METAL AND COMMODITY PRICES SAID MICHAEL JORDAN CHIEF DEALER AT BANK OF NEW ZEALAND LATE IN NEW YORK THE AUSTRALIAN CURRENCY TRADED AT US06800 UP FROM US06775 TUESDAY BECAUSE COMMODITIES CONSTITUTE A LARGE PORTION OF AUSTRALIA'S EXPORTS THE CURRENCY IS EXTREMELY SENSITIVE TO CHANGES IN THEIR PRICES MR JORDAN SAID THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 COMMODITY PRICES ENDED DOWN 007 POINT WEDNESDAY BUT VAULTED 531 POINTS TO A 21MONTH HIGH TUESDAY AUSTRALIAN JUNE JOBS DATA DUE THURSDAY WILL PROBABLY PROVIDE THE NEXT DIRECTION FOR AUSTRALIANDOLLAR TRADING MR JORDAN SAID PLAYERS EXPECT THE UNEMPLOYMENT RATE TO HAVE RISEN TO 108 IN JUNE FROM 107 IN MAY A LOWERTHANEXPECTED RATE COULD GIVE THE AUSTRALIAN DOLLAR A STRONG BOOST MR JORDAN SAID NO ONE SEES MUCH OF A TURNAROUND THERE FOR NOW HE ADDED LOOKING FORWARD THE US DOLLAR IS LIKELY TO REMAIN RANGEBOUND AGAINST THE MARK AND YEN THE NEXT FEW DAYS TRADERS SAID NO MAJOR PIECES OF ECONOMIC DATA ARE SCHEDULED AND THE G7 SUMMIT ISN'T EXPECTED TO YIELD MUCH OF NOTE EITHER THEY SAID THE DOLLAR PROBABLY WILL TRADE BETWEEN 1680017200 MARKS AND 1055010950 YEN UNTIL THE END OF THE WEEK DEALERS SAID 9307080033 930708 TAKING THIS BULL BY THE HORNS COULD BE A 300000 PROPOSITION BY JYOTI THOTTAM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE CHARGING BULL OF BROADWAY MAY SOON CHARGE RIGHT OUT OF TOWN THE THREEANDAHALFTON BRONZE STATUE INSTALLED IN 1989 NEAR BOWLING GREEN IN NEW YORK'S FINANCIAL DISTRICT WILL BE SOLD UNLESS A BULLISH INVESTOR COMES FORWARD TO BUY THE STATUE AND DONATE IT PERMANENTLY TO THE CITY OF NEW YORK ARTURO DI MODICA THE SCULPTOR SAYS HE SPENT 320000 OF HIS OWN MONEY TO CREATE AND INSTALL THE BULL BECAUSE HE WANTED TO HELP RESTORE PEOPLE'S CONFIDENCE AFTER THE STOCKMARKET CRASH OF 1987 I DID IT FOR THE PEOPLE OF THIS COUNTRY ESPECIALLY FOR NEW YORKERS HE SAYS NOTING HOWEVER THAT HE NEVER INTENDED THE BULL TO BE A PERMANENT GIFT SO WHEN A LAS VEGAS HOTEL WHICH HE DECLINES TO NAME OFFERED HIM 300000 FOR THE STATUE MR DI MODICA WAS TORN HE SAYS HE WANTS TO KEEP THE BULL IN NEW YORK BUT CAN'T AFFORD TO DONATE HIS WORK I NEED A LITTLE SUPPORT HE SAYS THE HEADS OF CORPORATIONS LEFT AND RIGHT HAVE TAKEN PICTURES IN FRONT OF MY BULL I DON'T THINK THESE PEOPLE CAN STILL HAVE CLOSED EYES ART PICCOLO CHAIRMAN OF THE BOWLING GREEN ASSOCIATION HAS ORGANIZED THE CAMPAIGN TO SAVE THE CHARGING BULL WHICH IS SEEKING CORPORATE SPONSORSHIP TO PAY MR DI MODICA FOR HIS WORK HE SAYS THE STATUE SYMBOLIZES THE POWER OF THE AMERICAN ECONOMY NEW YORKERS HAVE MIXED FEELINGS ABOUT THE 16FOOTLONG 8FOOTHIGH SYMBOL JAMES SHIPP WHO WORKS ON BATTERY PLAZA SAYS THE BULL IS A POPULAR MEETING PLACE I WOULD DEFINITELY MISS IT HE SAYS ELISA DAVIS WHO WORKS FOR A LAW FIRM IN NEW YORK PLAZA SAYS SHE LIKES THE BULL BUT THERE ARE SO MANY OTHER CAUSES THAT NEED MONEY MORE THAN THE BULL THE CAMPAIGN HASN'T GOTTEN ANY OFFERS YET BUT MR PICCOLO HAS HIGH HOPES THAT THE BULL'S FUTURE IS HERE MEANWHILE MR DI MODICA IS WORKING ON THE NATURAL PARTNER FOR THE CHARGING BULL A CAUTIOUS BEAR 9307080032 930708 TECHNOLOGY SEVERAL COMPANIES ACCUSED OF PIRATING MICROSOFT SOFTWARE SAN FRANCISCO A US DISTRICT COURT GRAND JURY HANDED UP TWO SEPARATE INDICTMENTS OF SEVERAL COMPANIES AND THEIR PRINCIPALS FOR ALLEGEDLY COUNTERFEITING AND TRAFFICKING IN PIRATED MICROSOFT CORP SOFTWARE THE US ATTORNEY'S OFFICE SAID THE INDICTMENTS ARE THE FIRST EVER UNDER A 1992 FEDERAL FELONY COPYRIGHT LAW ACCORDING TO THE US ATTORNEY'S OFFICE SOFTWARE MAKERS SOUGHT THE LAW IN RESPONSE TO FEARS THAT THEIR PRODUCTS WERE VULNERABLE TO THEFT NAMED IN ONE NINECOUNT INDICTMENT ARE TWO AFFILIATED COMPANIES ABBA SYSTEMATIONS INC DOING BUSINESS AS PROSYS INC AND AVENUE SYSTEMS GROUP BOTH BASED IN FREMONT CALIF AND THREE OF THEIR PRINCIPALS YU JUNG WU HENRY SIU KWAN AND WILLIAM HAY THEY ARE CHARGED WITH PRODUCING 20000 ILLEGAL COPIES OF A MICROSOFT PERSONALCOMPUTER OPERATING SYSTEM AND ITS WINDOWS GRAPHICINTERFACE PROGRAM AND WITH LAUNDERING 500000 FROM THE SALE OF THE COUNTERFEIT PRODUCTS IN AN UNRELATED FOURCOUNT INDICTMENT THE GRAND JURY NAMED EVER SUPPLY INC MILPITAS CALIF AND TWO OF ITS PRINCIPALS ROLAND TSAI AND TONY SHEN THEY ARE CHARGED WITH SELLING SEVERAL THOUSAND COUNTERFEIT COPIES OF MICROSOFT SOFTWARE AND COMPONENT PARTS WITH AN ESTIMATED VALUE OF 300000 9307080031 930708 WHO'S NEWS COLLINS INDUSTRIES INC CHOOSES LARRY SAYRE TO BE FINANCIAL CHIEF HUTCHINSON KAN COLLINS INDUSTRIES INC SAID IT NAMED LARRY SAYRE CHIEF FINANCIAL OFFICER TO SUCCEED AN EXECUTIVE WHO RESIGNED THIS YEAR AFTER AN INTERNAL INVESTIGATION FOUND THAT FINANCIAL RESULTS HAD BEEN MISSTATED MR SAYRE 45 YEARS OLD WHO MOST RECENTLY WORKED FOR ACCOUNTING FIRM GRANT THORNTON IN KANSAS CITY MO SUCCEEDS JOSEPH S HEBB WHO RESIGNED AFTER AN INVESTIGATION BY THE COMPANY'S OUTSIDE DIRECTORS FOUND THAT NET INCOME FOR FISCAL 1992 WAS OVERSTATED BY AN ESTIMATED 72 AND THAT 12 MILLION OF FOURTHQUARTER VENDOR PAYABLES IN THE COMPANY'S WHEELED COACH UNIT WEREN'T PROPERLY RECORDED THE INVESTIGATION LATER DETERMINED THAT MR HEBB WAS THE ONLY EXECUTIVE WHO KNEW THE RESULTS WERE MISSTATED THE COMPANY ALSO NAMED TERRY CLARK PRESIDENT OF COLLINS'S MOBILETECH UNIT IN HUTCHINSON WHICH MAKES TRANSPORTATION AIDS FOR THE PHYSICALLY DISABLED HE IS THE FOUNDER OF QUEST COMMUNICATIONS CORP A MANUFACTURING AND TELECOMMUNICATIONS COMPANY MR CLARK 42 SUCCEEDS GARY G GOETSCH WHO BECAME PRESIDENT OF WHEELED COACH IN MARCH THE COMPANY ALSO REVEALED YESTERDAY THAT IT IS THE TARGET OF A SHAREHOLDER LAWSUIT ALONG WITH CURRENT AND FORMER OFFICERS AND DIRECTORS ALLEGING OMISSION OR MISREPRESENTATION OF MATERIAL FACTS ABOUT THE COMPANY'S BUSINESS AFFAIRS AND FINANCIAL CONDITION THE SUIT WAS ORIGINALLY FILED IN A PENNSYLVANIA FEDERAL COURT BUT WAS MOVED TO US DISTRICT COURT IN WICHITA KAN 9307080030 930708 CHEVRON TO SELL BUILDING HOUSING ITS HEADQUARTERS SAN FRANCISCO CHEVRON CORP SAID IT PLANS TO SELL THE 22STORY BUILDING IN THE FINANCIAL DISTRICT HERE THAT HAS SERVED AS ITS CORPORATE HEADQUARTERS SINCE 1923 WE SIMPLY HAVE MORE OFFICE SPACE THAN WE NEED AFTER THE CORPORATE RESTRUCTURING AND MANPOWER REDUCTIONS THAT WERE INITIATED LAST YEAR SAID CHAIRMAN KEN DERR ABOUT 550 COMPANY JOBS IN SAN FRANCISCO WERE CUT DURING THE PAST 18 MONTHS LEAVING ABOUT 2000 EMPLOYEES IN THE CITY A SPOKESWOMAN SAID CHEVRON HASN'T YET DECIDED WHICH OF TWO OTHER NEARBY BUILDINGS ON MARKET STREET WILL HOUSE THE TOP CORPORATE OFFICERS CHEVRON SAID IT WILL PUT THE TOWER AT 225 BUSH STREET ON THE MARKET BY THE END OF THE YEAR BUT DIDN'T DISCLOSE ITS ASKING PRICE OTHER BUILDINGS IN THE DISTRICT HAVE RECENTLY SOLD FOR ABOUT 100 A SQUARE FOOT GIVING THE 572000SQUAREFOOT CHEVRON BUILDING AN INDICATED VALUE OF ROUGHLY 57 MILLION SAID JIM MOORE MANAGING DIRECTOR OF THE SAN FRANCISCO OFFICE OF CUSHMAN & WAKEFIELD INC CHEVRON THE NATION'S LARGEST PETROLEUM REFINER AND MARKETER ANNOUNCED IN MAY THAT IT WOULD SELL NEARLY A THIRD OF ITS DOMESTIC REFINING CAPACITY AND DISPOSE OF GAS STATIONS IN NEARLY A DOZEN STATES OVER THE PAST YEAR THE COMPANY HAS ELIMINATED ABOUT 5000 JOBS REDUCING ITS WORLDWIDE WORK FORCE TO ABOUT 50000 9307080028 930708 YOUR MONEY MATTERS INVESTMENT DARTBOARD DART THROWERS COME UP WINNERS AGAINST PROS' PICKS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL ONCE AGAIN PROFESSIONAL STOCK PICKERS CAN FEEL THE HOT BREATH OF THE DART BRIGADE ON THE BACK OF THEIR NECKS IN THE LATEST INVESTMENT DARTBOARD STOCKPICKING CONTEST WHICH RAN JAN 13 THROUGH JUNE 30 FOUR PROFESSIONAL STOCK PICKERS HAD AN AVERAGE LOSS OF 66 FOUR DARTS FLUNG AT THE STOCK LISTINGS DID FAR BETTER AVERAGING A 47 GAIN MEANWHILE THE DOW JONES INDUSTRIAL AVERAGE OUTDID BOTH THE PROS AND THE DARTS RISING 77 IN THE CONTINUING BATTLE BETWEEN PROFESSIONALS AND DARTS THE FORCES OF CHANCE HAVE WON 45 OF THE TIME THE PROS HAVE CAPTURED 20 CONTESTS AND THE DARTS 17 IN A SERIES OF 37 OVERLAPPING SIXMONTH CONTESTS THAT'S NOT TOO HEARTENING FOR FOLKS WHO PAY FOR PROFESSIONAL STOCKPICKING ADVICE ON THE OTHER HAND THE PROS CAN TAKE PRIDE IN THEIR AVERAGE SIXMONTH GAIN OF 83 THE AVERAGE GAIN FOR THE DARTS HAS BEEN 54 AND 41 FOR THE INDUSTRIAL AVERAGE AS CUSTOMARY IN THE CONTEST THE TWO PEOPLE WHO DID BEST HAVE BEEN INVITED TO TRY AGAIN THEIR NEW PICKS COULDN'T BE MORE DIFFERENT ONE GENERAL ELECTRIC CO IS A STEADY BLUE CHIP THE OTHER ENERGY CONVERSION DEVICES INC IS A FLATOUT SPECULATION THE DEFENDING CHAMPION IS DAVID MORSE PRESIDENT OF FORD INVESTOR SERVICES INC AND FORD CAPITAL MANAGEMENT INC IN SAN DIEGO MR MORSE WON THE LATEST CONTEST WITH A 195 GAIN IN LORAL CORP LAST YEAR HE CAME IN SECOND WITH A 35 GAIN IN APPLE COMPUTER INC THIS TIME HE IS GOING THE CONSERVATIVE ROUTE WITH GE THE FAIRFIELD CONN MANUFACTURING COMPANY THAT MAKES ELECTRICAL EQUIPMENT POWER GENERATION SYSTEMS AND JET ENGINES AMONG MANY OTHER THINGS GE IS ALSO THE PARENT OF THE NBC TELEVISION NETWORK AND SECURITIES FIRM KIDDER PEABODY & CO MR MORSE LIKES GE'S STEADINESS WE HAVE A PROJECTED GROWTH RATE OF 10 A YEAR HE SAYS UNSPECTACULAR SURE BUT MR MORSE HAS HIGH CONFIDENCE THAT GE CAN DELIVER THAT GROWTH YEAR AFTER YEAR GE'S CHIEF EXECUTIVE OFFICER JOHN F WELCH HAS DONE AN AMAZINGLY GOOD JOB IN KEEPING HIS BIG ORGANIZATION FROM GETTING BUREAUCRATIC MR MORSE SAYS HE WANTS GE TO REACT QUICKLY LIKE A SMALL COMPANY ALTHOUGH GE'S REVENUE HAS BEEN FLAT OF LATE EARNINGS HAVE GROWN THROUGH COSTCUTTING AND THE OCCASIONAL PARING OF ENTIRE BUSINESSES THAT DON'T SATISFY MR WELCH'S OBJECTIVES GE'S RETURN ON STOCKHOLDER'S EQUITY IS 18 AND EARNINGS APPEAR TO BE ACCELERATING THIS YEAR MR MORSE SAYS ACCORDING TO HIS COMPUTER MODELS THE STOCK IS ABOUT 15 UNDERVALUED IT CLOSED YESTERDAY AT 94625 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING STEVE NEWBY PRESIDENT OF NEWBY & CO A BROKERAGE HOUSE IN ROCKVILLE MD WAS RUNNERUP IN THE LATEST CONTEST WITH A 23 GAIN IN EATON VANCE CORP NOW HE'S TAKING OFF THE GLOVES AND TRYING FOR A KNOCKOUT WITH A WILD ONE ENERGY CONVERSION DEVICES THIS IS A STOCK THAT MANY OF YOUR READERS WILL KNOW AND HATE SAYS MR NEWBY ENERGY CONVERSION DEVICES HAS BEEN AROUND FOR THREE DECADES AND DURING THAT TIME HAS LOST A CUMULATIVE 152 MILLION HE SAYS BACK IN 1968 THE STOCK LOOKED LIKE A MOONSHOT SOARING TO 180 A SHARE YESTERDAY IT WAS TRADING AT 10 A SHARE IN THE OVERTHECOUNTER MARKET RUN BY STANFORD R OVSHINSKY THE TROY MICH COMPANY HOLDS MORE THAN 1000 PATENTS INCLUDING 394 IN THE US MR NEWBY SAYS HE IS PINNING HIS HOPES ON TWO TYPES OF DEVICES BATTERIES FOR ELECTRIC CARS AND SOLAR PANELS MR NEWBY SAYS ENERGY CONVERSION DEVICES WAS THE FIRST COMPANY TO BE AWARDED A CONTRACT BY THE US ADVANCED BATTERY CONSORTIUM WHICH CONSISTS OF THE THREE MAIN US CAR MAKERS PLUS THE ELECTRIC POWER RESEARCH INSTITUTE AND THE US ENERGY DEPARTMENT IT WAS AN 185 MILLION CONTRACT THE COMPANY ALSO HAS A JOINT VENTURE WITH CANON INC OF JAPAN TO MAKE SOLAR PANELS IN A 30 MILLION PLANT IN NEWPORT NEWS VA BUT MR NEWBY MAKES NO PRETENSE THAT THIS IS A SAFE STOCK IT IS SUITABLE HE SAYS FOR THE RIVERBOAT GAMBLERS OF AMERICA TWO NEW PROS JOIN THE FUN ROBERT W BISSELL IS A PORTFOLIO MANAGER AT WELLS FARGO BANK IN LOS ANGELES FRED GORDON IS EDITOR OF PLAIN TALK INVESTOR A NEWSLETTER IN NORTHBROOK ILL MR BISSELL RECOMMENDS NOVELL INC THE COMPUTER NETWORKING POWERHOUSE BASED IN PROVO UTAH NOVELL STOCK HIT A HIGH OF 3525 A SHARE IN JANUARY THEN SANK NEARLY 35 TO A LOW OF 23 IN JUNE IT CLOSED YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING AT 25875 ONLY A FEW DOLLARS ABOVE THE JUNE LOW A PRODUCT TRANSITION IS TO BLAME SAYS MR BISSELL NOVELL IS SWITCHING FROM ITS NETWARE 311 TO NETWARE 40 THE LATTER IS A MORE ADVANCED NETWORKING SYSTEM BOTH SYSTEMS ALLOW THE LINKING OF MULTIPLE COMPUTER WORKSTATIONS WHEN A COMPANY HAS A VERY SUCCESSFUL PRODUCT AND NOVELL DOES PEOPLE FEAR THE WORST FROM A PRODUCT TRANSITION MR BISSELL SAYS THERE'S CONCERN ABOUT SALES MOMENTUM WILL CUSTOMERS HOLD OFF WILL THE NEW PRODUCT BE SUCCESSFUL MR BISSELL SAYS SUCH FEARS ARE EXAGGERATED AND JUDGES THE STOCK TO BE AT PRETTY ATTRACTIVE LEVELS HE PREDICTS CONTINUED EARNINGS GROWTH FOR NOVELL AT A 25 TO 30 ANNUAL CLIP HE LIKES THE FACTS THAT NOVELL PLANS TO BUY BACK 11 MILLION SHARES AND THAT MANAGEMENT OWNS 11 OF THE STOCK OUTSTANDING AN UNSUALLY LARGE AMOUNT MR GORDON LIKES AMERICAN BARRICK RESOURCES CORP THE TORONTO GOLD MINING COMPANY AMERICAN BARRICK IS INCREASING ITS GOLD PRODUCTION AND HAS TRIMMED ITS COST PER OUNCE OF GOLD PRODUCED HE SAYS IT IS CONSIDERED ONE OF THE PREMIERES IN ITS INDUSTRY I'M A BELIEVER IN THE NEW BULL MARKET IN GOLD MR GORDON SAYS BUT IT'S NOT BECAUSE HE THINKS INFLATION IS ABOUT TO SURGE THE REAL IMPETUS HE SAYS IS A SUPPLYDEMAND IMBALANCE CHINA IS A MAJOR POTENTIAL BUYER PLUS THE EMERGING NATIONS AS A KICKER MR GORDON SAYS GOLD COULD BE AN INSTANT BENEFICIARY IF THERE IS A MAJOR CORRECTION IN THE STOCK MARKET OR THE BOND MARKET BUT HE CAUTIONS THAT AMERICAN BARRICK IS VOLATILE IF YOU WEAR A PACEMAKER YOU SHOULD TREAT THIS AS A MICROWAVE STOCK DON'T GET NEAR IT HE SAYS YESTERDAY AMERICAN BARRICK CLOSED AT 26375 A SHARE IN BIG BOARD COMPOSITE TRADING UP CONSIDERABLY FROM ITS MARCH LOW OF 1475 FOR THE COMING SIX MONTHS THE PROS' SELECTIONS WILL VIE AGAINST A DARTBOARD PORTFOLIO CONSISTING OF BLAIR CORP COREL CORP SCANDINAVIAN BROADCASTING SYSTEMS SA AND VALASSIS COMMUNICATIONS INC 9307080027 930708 LETTERS TO THE EDITOR THE BEAR FACTS OF SHEEP RANCHING IN IF A GRIZZLY ATTACKS DROP YOUR GUN RULE OF LAW JUNE 23 IKE C SUGG HAS ANSWERED QUESTIONS THAT HAVE LONG TROUBLED ME SINCE MOVING TO WASHINGTON DC I'VE WONDERED ABOUT PEOPLE WHO INCESSANTLY PROTEST JET NOISE ASSOCIATED WITH NATIONAL AIRPORT WHY DID THEY ESTABLISH RESIDENCE UNDER NATIONAL'S FLIGHT PATHS DID THEY NOT KNOW THE LOCATION OF THE AIRPORT OR THAT JETS MAKE NOISE BEFORE BUYING OR RENTING DID THEY MIRACULOUSLY MANAGE TO VIEW THE PROPERTY ONLY WHEN THERE WAS NO TRAFFIC AT ONE OF THE COUNTRY'S BUSIEST AIRPORTS MR SUGG HAS PROVIDED ANSWERS THE FIRST HALF OF HIS SAD SAGA OF THE VALIANT BUT PERSECUTED RANCHER JOHN SHULER CAUSED ME TO WONDER WHEN MR SHULER BOUGHT HIS RANCH IN 1986 DID HE NOT KNOW OR HAVE ANY WAY OF FINDING OUT THAT HE WAS PROPOSING TO PLOP FLUFFY WHITE BEAR MORSELS SHEEP IN THE MIDST OF THE ONLY PRIME GRIZZLY TERRITORY REMAINING IN THE LOWER 48 DID HE HAVE NO KNOWLEDGE OF THE ENDANGERED SPECIES ACT OR OF THE 1982 CHRISTY CASE WHICH MR SUGG HIMSELF TERMS IDENTICAL TO MR SHULER'S PREDICAMENT NOW I KNOW BASED ON MR SUGG'S ARGUMENT THAT IF A PERSON PLACES HIMSELF IN HARM'S WAY WHETHER THE THREAT IS JET NOISE OR GRIZZLIES HE SHOULD EXPECT THE PUBLIC AS A WHOLE TO BEAR THE COST OF THE BURDENS HE SUFFERS AS A CONSEQUENCE HMMM I THINK I'LL BUY A HOUSE ON THE BANKS OF A RIVER JUST DOWNSTREAM FROM A CHEMICAL PLANT DRILL A WATER WELL AND SUE THE CHEMICAL COMPANY SILLY AS A MEMBER OF RURAL AMERICA I WOULD LIKE TO AGREE WITH MR SUGG'S ARTICLE HISTORICALLY RURAL AMERICA HAS HAD TO BEAR THE BURDEN OF PLEASING URBAN SOCIETY'S DEMANDS MAJORITY RULES AND IN MOST CASES OF THE ENDANGERED SPECIES ACT THIS CAUSES THE MINORITY OR RURAL AMERICA TO BEAR THE COST THE RESIDENTS OF RURAL AMERICA HAVE BECOME AN ENDANGERED SPECIES BUT WITHOUT THE PROTECTION OF ANY ACT WHILE COMPLAINING THAT THE INTERIOR DEPARTMENT SET AN UNWARRANTED AND CHILLING PRECEDENT IN FINING A WESTERN RANCHER FOR KILLING A GRIZZLY ENGAGED IN RAIDING HIS SHEEP FLOCK MR SUGGS ACTUALLY APPEARS MORE INTERESTED IN USING THE INCIDENT TO RAISE AND PROMOTE THE TAKINGS ISSUE A PHILOSOPHY EMBRACED BY THOSE INTENT ON UNDERMINING THE ENVIRONMENTAL PROTECTIONS IMPLEMENTED INTO LAW OVER THE LAST FEW DECADES WHILE THE FIFTH AMENDMENT DOES INDEED PROSCRIBE GOVERNMENT FROM TAKING PRIVATE PROPERTY FOR PUBLIC USE WITHOUT JUST COMPENSATION IT WAS CERTAINLY NOT MEANT TO GUARANTEE SOMEONE AGAINST LOSS CAUSED BY PROTECTED WILDLIFE NOR TO PLACE AN UNDUE BURDEN ON GOVERNMENT IN EXERCISING ITS FUNDAMENTAL RIGHT TO PRESERVE OUR NATIONAL ENVIRONMENTAL HERITAGE HAD THE INTERIOR DEPARTMENT NOT FINED THE SHEEP RANCHER UNDER PROVISIONS OF THE ENDANGERED SPECIES ACT IT WOULD HAVE OPENED THE DOOR TO WHOLESALE SLAUGHTER OF GRIZZLIES AND BY EXTENSION TO DESTRUCTION OF ANY OTHER FORM OF ENDANGERED WILDLIFE FOR PROTECTION OF PROPERTY A MAN SETS UP A RANCH IN A WILD AREA OF MONTANA AND LOSES 1200 OF SHEEP TO GRIZZLY BEARS THAT'S A SHOCKER MR SUGG SUGGESTS THAT WE EITHER ALLOW MR SHULER TO KILL THE GRIZZLY BEAR WHICH WOULD BE OPPOSED BY THE MAJORITY OF THE POPULATION AND WOULD CERTAINLY BE DETRIMENTAL LONG TERM TO THE GENERAL ECONOMY OF MONTANA WHICH RELIES HEAVILY ON TOURISM OR COMPENSATE HIM FOR HIS ECONOMIC LOSS AS THE JOURNAL WELL KNOWS INDIVIDUALS ARE ROUTINELY HARMED MONETARILY IN OUR ECONOMY TO CALL FOR GOVERNMENT SUBSIDY OF A SHEEP RANCHER IN A WILD SECTION OF MONTANA IS ABSOLUTELY SENSELESS WHAT SEEMS TO ME TO HAVE GONE TOO FAR IS THE PUBLIC SUPPORT OF A VERY FEW PEOPLE WHO ARE BENT ON EKING OUT AN 18TH OR 19THCENTURY LIVING IN WHAT'S LEFT OF THE US WILDERNESS THESE LANDS HAVE FAR GREATER VALUE AS WILDLIFE HABITAT AND FOR PUBLIC RECREATION THAN FOR THE RATHER MINUSCULE PRODUCTION OF DOMESTIC LIVESTOCK 9307080026 930708 TECHNOLOGY & HEALTH FEDERAL JUDGE IN A VICTORY FOR AT&T RULES MCI MUST DISCLOSE ALL OF ITS RATES BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SCORE ONE FOR AMERICAN TELEPHONE & TELEGRAPH CO ITS NEMESIS MCI COMMUNICATIONS CORP MUST DISCLOSE PUBLICLY ALL OF ITS LONGDISTANCE RATES A FEDERAL JUDGE RULED AT&T CHARGED IN A LAWSUIT LAST MONTH THAT MCI HAD IGNORED A MAY ORDER FROM THE FEDERAL COMMUNICATIONS COMMISSION REQUIRING ALL LONGDISTANCE CARRIERS TO FILE THEIR INTERSTATE LONGDISTANCE RATES YESTERDAY US DISTRICT JUDGE STANLEY S HARRIS IN THE WASHINGTON AGREED WITH AT&T AND ORDERED MCI TO FILE ITS RATES AN MCI SPOKESMAN SAID THE COMPANY WILL COMPLY WITH THE COURT'S ORDER MCI ISSUED A STATEMENT YESTERDAY SAYING ITS ABILITY TO FULFILL ALL OF ITS CURRENT OR FUTURE CONTRACTS IS NOT IMPEDED BY THE NEW ORDER BUT THE RULING MAY HAMSTRING OTHER CARRIERS SMALLER THAN MCI WHILE THE JUDGE AIMED HIS RULING AT MCI THE ORDER WOULD REINFORCE REGULATIONS GOVERNING ALL CARRIERS INCLUDING AS MCI NOTED IN ITS STATEMENT CELLULAR PHONE COMPANIES AND OTHERS OFFERING PHONE CUSTOMERS ALTERNATIVE LOCAL ACCESS TO LONGDISTANCE NETWORKS THE COURT'S ORDER CAPS A PROCESS BEGUN BY AT&T IN 1989 WITH THE FCC AND THE COURTS TO FORCE MCI TO COMPLY WITH TARIFFFILING RULES IN THE COMMUNICATIONS ACT OF 1934 IT'S A BIG VICTORY FOR OUR CUSTOMERS AND FOR THE INDUSTRY SAID JOSEPH NACCHIO PRESIDENT OF AT&T BUSINESS COMMUNICATION SERVICES SECRET DEALS DENY CUSTOMERS THE BENEFITS OF COMPETITION AS THE DOMINANT CARRIER AT&T HAS HAD TO DISCLOSE PUBLICLY ALL OF ITS RATES WITH THE FCC LAST NOVEMBER AT&T WON A FEDERAL APPEALS COURT RULING REQUIRING THE SAME FILINGS FROM OTHER CARRIERS MCI CONTENDED IT HAD COMPLIED WITH THE FCC ORDER WHICH WAS ISSUED MAY 4 IN RESPONSE TO THE APPEALS COURT RULING WE FEEL WE WERE IN FULL COMPLIANCE WITH THE FCC'S RULES SAID AN MCI SPOKESMAN BUT WE WILL COMPLY WITH THE NEW ONE ACTUALLY MCI FILED GENERAL TARIFFS SHOWING A RANGE OF CHARGES FOR INDIVIDUAL BUSINESS CUSTOMERS MCI HOWEVER DIDN'T PUBLICLY DISCLOSE THE ACTUAL RATES IT CHARGED EACH CUSTOMER AT&T SAID THAT PUT IT AT A DISADVANTAGE MCI SALES PEOPLE COULD LOOK AT AT&T'S PRICING FOR A SPECIFIC CUSTOMER AND THEN PRIVATELY OFFER A COMPETITIVE PRICE TO WHICH AT&T COULDN'T RESPOND IT IS UNDISPUTED WROTE JUDGE HARRIS THAT MCI CHARGES CERTAIN CUSTOMERS RATES THAT ARE NOT SPECIFIED IN OR ASCERTAINABLE FROM ITS PUBLISHED SCHEDULES 9307080025 930708 WHO'S NEWS BURLINGTON RESOURCES INC BURLINGTON RESOURCES INC SEATTLE DONALD M ROBERTS 57 YEARS OLD WAS NAMED A DIRECTOR OF THIS NATURAL RESOURCES CONCERN SUCCEEDING DONALD CLAYTON WHO RESIGNED MR ROBERTS IS A VICE CHAIRMAN OF US TRUST CORP 9307080024 930708 TECHNOLOGY AT&T SEEKS PARTNERS TO HELP IT ENTER EUROPEAN MARKET BERLIN DETERMINED TO SEE AMERICAN TELEPHONE & TELEGRAPH CO BREAK INTO THE SLOWLY LIBERALIZING EUROPEAN TELECOMMUNICATIONS MARKET ROBERT ALLEN THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER IS TOURING EUROPEAN CAPITALS IN SEARCH OF PARTNER COMPANIES RATHER THAN FORMING AN EXCLUSIVE ALLIANCE OR JOINT VENTURE HOWEVER AT&T PLANS TO EXTEND ITS INTERNATIONAL WORLD SOURCE PARTNERSHIP AT&T IS BASED IN NEW YORK TEAMING UP WITH EUROPEAN COMPANIES WOULD ALLOW AT&T NOT ONLY TO GET INVOLVED IN A MARKET SO FAR LARGELY OFFLIMITS TO OUTSIDERS BUT ALSO TO COUNTER THE POWERFUL ALLIANCE FORMED BY BRITISH TELECOMMUNICATIONS PLC AND MCI COMMUNICATIONS CORP ONE OF AT&T'S US RIVALS LAST MONTH WORLD SOURCE LAUNCHED JUST WEEKS BEFORE THE JOINT VENTURE BETWEEN BT AND MCI IS A COOPERATION AGREEMENT WITH TELECOMMUNICATIONS COMPANIES IN ASIA AND NORTH AMERICA WHOSE VOICE AND DATA NETWORKING SERVICES WILL BE LINKED TO AT&T'S THE IDEA IS TO OFFER AT&T'S SERVICE TO CUSTOMERS WHILE ALLOWING THEM TO WORK ONLY WITH THEIR NATIONAL PHONE COMPANY SPEAKING TO JOURNALISTS AT THE EUROPEAN CHAIRMEN'S SYMPOSIUM HERE MR ALLEN SAID HE PREFERRED AN OPEN MULTIPARTY ENTENTE TO AN EXCLUSIVE RELATIONSHIP BETWEEN COMPANIES A PARTNERSHIP LIKE WORLD SOURCE HAS BETTER OPPORTUNITIES THAN A SINGLE ALLIANCE HE ASSERTED ARGUING THAT IT IS MORE COSTLY AND LESS EFFICIENT TO ENTER A MARKET WITH ONLY ONE OTHER PARTNER THE SYMPOSIUM WAS ORGANIZED BY THE WALL STREET JOURNAL EUROPE AND THE GERMAN BUSINESS NEWSPAPER HANDELSBLATT MR ALLEN ALSO DENIED INDUSTRY RUMORS THAT AT&T WAS PLANNING TO TAKE OVER CABLE & WIRELESS PLC THE BRITISH COMMUNICATIONS CONCERN MR ALLEN SAID HE WAS CONFIDENT THAT TWO OR THREE EUROPEAN COMPANIES WILL TEAM UP WITH AT&T FRANCE TELECOM HAS PREVIOUSLY SAID IT IS TALKING TO AT&T ABOUT VARIOUS FORMS OF COOPERATION IN GERMANY AT&T RECENTLY FORMED A PARTNERSHIP TO PROVIDE A FIBEROPTICS TRANSMISSION SYSTEM TO DEUTSCHE BUNDESPOST TELEKOM'S OPERATIONS IN EASTERN GERMANY 9307080023 930708 BUSINESS BRIEF HORIZON HEALTHCARE CORP GROWTH IN SPECIALTY SERVICES HELPS BOOST 4THPERIOD NET HORIZON HEALTHCARE CORP SAID ITS NET INCOME FOR THE FOURTH QUARTER ENDED MAY 31 ROSE ABOUT 37 BECAUSE OF GROWTH IN HIGHERMARGIN SPECIALTY SERVICES THE OPERATOR OF LONGTERM HEALTHCARE CENTERS SAID FOURTHQUARTER NET GREW TO 24 MILLION OR 20 CENTS A SHARE FROM 17 MILLION OR 15 CENTS A SHARE A YEAR AGO THE YEAREARLIER EARNINGS INCLUDED A ONETIME TAX CREDIT OF ONE CENT A SHARE REVENUE JUMPED 65 TO 719 MILLION FROM 437 MILLION A YEAR AGO THE COMPANY WHICH IS BASED IN ALBUQUERQUE NM ATTRIBUTED THE IMPROVED RESULTS TO GROWTH IN THE REVENUE OF ITS HIGHERMARGIN SPECIALTY SERVICES AND PROGRAMS INCLUDING SPECIALTY HOSPITALS PHARMACY SERVICES ALZHEIMER'S LIVING CENTERS AND THERAPIES THE RESULTS EXCEEDED ANALYSTS' EXPECTATIONS THE CONSENSUS AMONG ANALYSTS ACCORDING TO THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM WAS 17 CENTS A SHARE HORIZON CLOSED AT 1425 A SHARE UP 375 CENTS ON THE NEW YORK STOCK EXCHANGE 9307080022 930708 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN TOKYO'S OFFICE RENTAL RATES WERE THE HIGHEST WORLDWIDE LAST YEAR BUT TRAILED LONDON'S IF COSTS SUCH AS TAXES WERE INCLUDED THE JAPANESE GOVERNMENT SAID THE ECONOMIC PLANNING AGENCY CONDUCTED THE REVIEW IN RESPONSE TO COMPLAINTS BY JAPAN'S TRADING PARTNERS THAT ITS HIGH RENTS MAKE IT DIFFICULT FOR THEIR COMPANIES TO DO BUSINESS IN THE COUNTRY TOKYO RENTS HAVE DROPPED SINCE JAPAN'S SPECULATIVE ECONOMY BURST IN THE LATE 1980S BUT REMAIN RELATIVELY EXPENSIVE BECAUSE OF HIGH DEMAND AND A 5 VACANCY RATE THE AVERAGE MONTHLY RENT FOR 37 SQUARE FEET OF OFFICE SPACE IN TOKYO WAS 379 FOLLOWED BY PARIS AT 306 LONDON 251 FRANKFURT 217 NEW YORK 182 CHICAGO 134 LOS ANGELES 126 AND BRUSSELS 100 BASED ON 1992 FOREIGNEXCHANGE RATES THE GAP BETWEEN JAPANESE AND OVERSEAS RENTS HAS WIDENED RECENTLY AS THE YEN STRENGTHENED AGAINST OTHER CURRENCIES INCLUDING TAXES MANAGEMENT FEES AND INTERIOR WORK ALTERED THE ORDER MAKING LONDON MOST EXPENSIVE FOLLOWED BY TOKYO PARIS FRANKFURT NEW YORK BRUSSELS CHICAGO AND LOS ANGELES JOHN MAJOR'S POPULARITY HAS DROPPED TO THE LOWEST LEVEL EVER RECORDED FOR A BRITISH PRIME MINISTER A GUARDIAN NEWSPAPER POLL PUT THE CONSERVATIVE LEADER'S APPROVAL RATING AT 14 BY COMPARISON FOLLOWING THE POUND'S DEVALUATION IN 1968 PUBLIC APPROVAL OF HAROLD WILSON THE LABOR PRIME MINISTER FELL TO 27 MARGARET THATCHER RANG IN AT 23 WHEN SHE RESIGNED IN 1990 A SPOKESWOMAN FOR MR MAJOR SAID HE HAS LITTLE FAITH IN THE VALUE OF OPINION POLLS AND ATTRIBUTED PUBLIC DISCONTENT TO THE GLOBAL RECESSION THAT HAS LIKEWISE LOWERED OTHER POLITICAL LEADERS' STANDING RUSSIA ORDERED A STATEOWNED NICKEL ENTERPRISE THAT OPERATES ABOVE THE ARCTIC CIRCLE TO SELL 49 OF ITS SHARES TO PRIVATE INVESTORS THE FIRM NORILSK NICKEL ALSO PROCESSES NONFERROUS AND PRECIOUS METALS THE MOVE TO CONVERT NORILSK INTO A JOINT STOCK COMPANY ADDS MOMENTUM TO RUSSIA'S PRIVATIZATION PROGRAM THE GOVERNMENT HAS BEEN SLOW TO SELL OFF THE NATURAL RESOURCES SECTOR WHICH HAS BILLIONS OF DOLLARS OF RAW MATERIALS SUCH AS NICKEL OIL DIAMONDS AND GOLD TO HELP NORILSK RAISE CAPITAL RUSSIA EXEMPTED IT FROM SOME EXPORT DUTIES AND THE RULE TO SELL HALF ITS HARDCURRENCY EARNINGS TO THE STATE AFTER AN UNPRECEDENTED SPATE OF BANK ROBBERIES GREECE ORDERED BANKS TO IMPROVE SECURITY AT THEIR BRANCHES WITHIN TWO MONTHS OR RISK BEING CLOSED A RECORD 27 BANKS WERE ROBBED SO FAR THIS YEAR COMPARED WITH 12 IN ALL OF 1992 BRANCHES MUST INSTALL ROBBERTRAPPING DOUBLE DOORS BULLETPROOF GLASS VIDEO CAMERAS AND TIME LOCKS ON SAFES FOR EXAMPLE FEW BRANCHES APPLY ALL THOSE SECURITY MEASURES NOW AND BANK EMPLOYEES STAGED A TWOHOUR WORK STOPPAGE YESTERDAY TO DEMAND THEM POLITICAL AND ECONOMIC UPHEAVALS HAVE TARNISHED JAPAN'S LONGSTANDING REPUTATION AS A MANUFACTURER OF QUALITY PRODUCTS A SURVEY OF 10 ASIAN COUNTRIES FOUND JAPAN RANKED SECOND BEHIND GERMANY WITH THE US RUNNING A CLOSE THIRD IN THE POLL OF 3000 SUBSCRIBERS BY FAR EASTERN ECONOMIC REVIEW MAGAZINE A DOW JONES & CO PUBLICATION IN A SIMILAR SURVEY TWO YEARS AGO JAPAN RANKED FIRST BY A WIDE MARGIN RESPONDENTS IN THE LATEST SURVEY ALSO SAID CHINA AND VIETNAM HAVE THE BEST MARKET POTENTIAL IN THE NEXT FIVE YEARS A TAX CUT IN BRAZIL LED TO A SHARP RISE IN MOTORVEHICLE SALES IN THE FIRST HALF SALES OF CARS TRUCKS VANS BUSES AND TRACTORS SOARED 46 TO 481754 VEHICLES FROM A YEAR EARLIER OF THE TOTAL AUTO SALES JUMPED 50 TO 373123 THE GOVERNMENT HAD SOUGHT TO STIMULATE SALES BY CUTTING THE INDUSTRIAL PRODUCTS TAX BY A THIRD FIRSTHALF VEHICLE OUTPUT ROSE 31 TO 631200 UNITS EXPORTS FELL 11 TO 137 BILLION CHINA SET A DEADLINE OF THREE TO FIVE YEARS FOR 13000 SMALL AND MEDIUMSIZED STATEOWNED ENTERPRISES TO BECOME COMPETITIVE NOTING ONLY A THIRD HAVE BEEN ABLE TO ADAPT TO THE MARKETORIENTED ECONOMY ABOUT 1000 COMPANIES HAVE INTRODUCED REFORMS SUCH AS CONTROLLING OPERATIONS AND INTRODUCING STOCK OWNERSHIP AND FOREIGN MANAGEMENT TECHNIQUES UNPROFITABLE FIRMS ABOUT A THIRD OF THE TOTAL WILL BE ALLOWED TO FAIL OR BE MERGED WITH HEALTHIER CONCERNS CHINA PROPS UP FIRMS TO MAINTAIN JOBS AND HEAD OFF SOCIAL UNREST MEANWHILE RISING RENTAL AND LABOR COSTS AND RED TAPE WERE BLAMED FOR THE DEPARTURE OF 100 ENTERPRISES SO FAR THIS YEAR FROM SHENZHEN THE ECONOMIC ZONE ADJACENT TO HONG KONG CREATED IN 1980 TO PIONEER THE COUNTRY'S MARKET REFORMS THE BOOMING ZONE BECAME A MAGNET FOR FOREIGN AND DOMESTIC INVESTMENT BUT IS CHANGING FROM A CHEAP BASE FOR LABORINTENSIVE INDUSTRIES TO A DIVERSIFIED URBAN ECONOMY WITH PER CAPITA INCOME ABOUT 10 TIMES THE NATIONAL AVERAGE URUGUAY'S LABOR FEDERATION STAGED A ONEDAY GENERAL STRIKE THE NINTH TO PROTEST FREEMARKET POLICIES SINCE PRESIDENT LUIS A LACALLE'S GOVERNMENT TOOK OFFICE IN MARCH 1990 AND THE 19TH WALKOUT SINCE 1985 WHEN ELECTIONS ENDED ALMOST 13 YEARS OF MILITARY RULE THE ACTION CLOSED FACTORIES BANKS AND PUBLIC OFFICES IN THE NATION OF THREE MILLION PEOPLE AND REDUCED TRANSIT SERVICES MEXICO'S CONSUMER PRICES LAST MONTH ROSE AT AN ANNUAL PACE OF 98 THE LOWEST INFLATION RATE SINCE 1973 9307080021 930708 HEALTH BATTLE OF HMOS FOR MILITARY JOB COULD BE MODEL BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL A TWOYEAR BATTLE FOR A GIANT MILITARY CONTRACT IS NEARING THE FINISH BUT THIS TIME NONE OF THE CONTESTANTS MAKE PLANES SHIPS OR TANKS INSTEAD THE BIDDERS OPERATE HEALTHMAINTENANCE ORGANIZATIONS AND THEY ARE COMPETING FOR THE RIGHT TO HANDLE MEDICAL CARE FOR 800000 MILITARY RETIREES AND DEPENDENTS IN CALIFORNIA AND HAWAII THE DEFENSE DEPARTMENT VALUES THE FIVEYEAR CONTRACT AT A TOTAL OF 35 BILLION OR MORE THAT MAKES IT ONE OF THE MOST LUCRATIVE PIECES OF BUSINESS TO COME ONTO THE HMO MARKET THIS YEAR ANALYSTS SAY THE MILITARY AWARD ALSO COULD BE A SIGN OF THINGS TO COME THE WHITE HOUSE HEALTHCARE PROPOSAL IS EXPECTED TO CALL FOR LARGE POPULATIONS TO BAND TOGETHER AND SHOP FOR HEALTH CARE EN MASSE SEEKING VOLUME DISCOUNTS FROM HMOS AND OTHER MEDICAL PROVIDERS AS A RESULT WE'RE LIKELY TO SEE OTHER BIG CONTRACTS AWARDED THIS WAY SAYS ELIE KEARNS AN HMO ANALYST IN BOSTON FOR ALEX BROWN & SONS THE TWO FRONTRUNNERS FOR THE CALIFORNIAHAWAII CONTRACT ARE BELIEVED TO BE FOUNDATION HEALTH CORP AND AETNA LIFE & CASUALTY CO THE OTHER TWO FINALISTS WELLPOINT HEALTH NETWORKS INC AND QUALMED INC ALSO ARE SPENDING MILLIONS OF DOLLARS IN AN ATTEMPT TO WIN THE BUSINESS THIS INTENSE COMPETITION IS JUST WHAT THE PENTAGON WANTS FOR THE PAST YEAR IT HAS PRESSED THE BIDDERS TO IMPROVE THEIR TERMS CULMINATING WITH THE SUBMISSION OF BEST AND FINAL OFFERS LAST MONTH THE PENTAGON HASN'T SET A DATE FOR ANNOUNCING A WINNER BUT RICHARD SINKIEWICZ A MILITARY CONTRACT MANAGER SAYS HE HOPES A DECISION CAN BE MADE BY JULY 30 OF ALL THE FINALISTS FOUNDATION HAS THE MOST AT STAKE IT IS THE INCUMBENT HAVING HANDLED THE CALIFORNIAHAWAII BUSINESS SINCE 1988 FOUNDATION RELIES ON THIS CONTRACT AWARDED BY THE CIVILIAN HEALTH AND MILITARY PROGRAM OF THE UNIFORMED SERVICES OR CHAMPUS FOR MORE THAN 40 OF ITS REVENUE THE CONTRACT ACCOUNTS FOR NEARLY AS LARGE A SHARE OF FOUNDATION'S OPERATING PROFIT SINCE JAN 1 FOUNDATION'S STOCK HAS SLUMPED 23 IN PART BECAUSE OF WORRIES THAT THE CONTRACT WON'T BE RENEWED AT ITS CLOSING PRICE OF 2875 IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY FOUNDATION STOOD AT JUST 11 TIMES ANALYSTS' ESTIMATES OF ITS PERSHARE EARNINGS THIS YEAR THAT LOW MULTIPLE REFLECTS INVESTORS' UNCERTAINTIES ABOUT THE CONTRACT SAYS ALEX BROWN'S MS KEARNS FOUNDATION OFFICIALS SOUND OPTIMISTIC WE FEEL WE'RE IN A STRONG POSITION TO WIN ALTHOUGH THIS IS A COMPETITIVE PROCESS SAYS STEVEN TOUGH PRESIDENT OF FOUNDATION'S GOVERNMENT DIVISION OUR EXPERIENCE IS OUR STRENGTH WE KNOW THE BUSINESS IN EVERY DETAIL AETNA HOWEVER IS JUST AS EAGER TO BE SEEN AS THE WORTHY INCUMBENT FOR THE PAST FIVE YEARS IT HAS BEEN A MAJOR SUBCONTRACTOR TO FOUNDATION HANDLING DOCTOR AND HOSPITAL NETWORKS FOR MUCH OF SOUTHERN CALIFORNIA INCLUDING SAN DIEGO WHERE MANY MILITARY RETIREES LIVE WE MANAGE THE LARGEST PORTION OF CHAMPUS BENEFICIARIES IN CALIFORNIA SAYS ROBERT KAPLAN AN AETNA VICE PRESIDENT WE OPERATE THE SERVICE CENTERS AND EXPLAIN THE SYSTEM TO PEOPLE THE CALIFORNIAHAWAII CONTRACT BEGAN FIVE YEARS AGO AS A TEST PROGRAM ORDINARILY CHAMPUS DIRECTS SOME BENEFICIARIES TO VETERANS ADMINISTRATION HOSPITALS BUT OTHERWISE LETS MEMBERS CHOOSE THEIR DOCTORS AND HOSPITALS HOPING TO RESTRAIN COSTS CHAMPUS IN 1988 LET FOUNDATION TAKE CHARGE OF ITS HEALTH PROGRAMS IN CALIFORNIA AND HAWAII IN THOSE TWO STATES BENEFICIARIES WERE ENCOURAGED TO JOIN EITHER AN HMO OR A PREFERREDPROVIDER ORGANIZATION BOTH OF THOSE MANAGEDCARE PROGRAMS OFFERED MEMBERS MORE EXTENSIVE COVERAGE IN RETURN FOR A COMMITMENT TO USE DOCTORS AND HOSPITALS WITHIN FOUNDATION'S NETWORK SO FAR CHAMPUS ESTIMATES IT HAS SAVED MORE THAN 350 MILLION THROUGH THIS APPROACH OF THE 800000 BENEFICIARIES IN CALIFORNIA AND HAWAII 232000 HAVE SIGNED UP FOR THE HMO OPTION AND 300000 FOR THE MORE FLEXIBLE PREFERREDPROVIDER PROGRAM MOST OF THE OTHER CHAMPUS BENEFICIARIES HAVE PRIVATE INSURANCE AND SELDOM USE CHAMPUS WITH THESE LARGE BLOCKS OF MEMBERS ENROLLED IN ITS PROGRAMS FOUNDATION CAN SAVE BY PURCHASING MEDICAL CARE AT A DISCOUNT FROM THE DOCTORS AND HOSPITALS IN ITS NETWORKS OTHER HMO OPERATORS HOWEVER CONTEND THAT THEY COULD DO AT LEAST AS WELL RUNNING THE PROGRAM AETNA IS PLAYING UP ITS SIZE AND FINANCIAL STRENGTH WELLPOINT IN WHICH BLUE CROSS OF CALIFORNIA HOLDS A STAKE OF MORE THAN 80 IS EMPHASIZING ITS BROAD NETWORK OF DOCTORS THROUGHOUT CALIFORNIA WE HAVE A HISTORY OF EXPERIENCE IN MANAGED CARE SAYS REBECCA KAPUSTAY A WELLPOINT OFFICIAL INVOLVED IN THE CHAMPUS PROJECT AND WE'VE GOT A FAIR AMOUNT OF GOVERNMENT EXPERIENCE CHAMPUS HAS TOLD THE BIDDERS THEY MUST PROVIDE A STANDARD BENEFIT PLAN SELECTION WILL BE BASED 60 ON AN ASSESSMENT OF WHICH BIDDER PROVIDES THE BEST SERVICE ADMINISTRATION AND OTHER TECHNICAL FEATURES AND 40 ON PRICE THOUGH A LOW PRICE ALONE WON'T BE ENOUGH TO WIN THE CONTRACT A CUTRATE BID COULD HAVE AN EDGE THAT'S THE STRATEGY AN APPARENT LONG SHOT QUALMED BASED IN PUEBLO COLO SEEMS TO BE RELYING ON WE THINK OUR MEDICAL CASEMANAGEMENT SYSTEM IS VERY COSTEFFECTIVE SAYS KEVIN MURPHY QUALMED'S VICE CHAIRMAN WE COULD GIVE THE DEPARTMENT OF DEFENSE TREMENDOUS COST SAVINGS MR MURPHY SAYS FOUNDATION WILL HAVE TO SCRAMBLE TO HOLD ONTO THEIR CONTRACT WITH ALL THAT COMPETITION SOME ANALYSTS WONDER IF THE ULTIMATE WINNER OF THE CHAMPUS CONTRACT WILL EARN MUCH OF A PROFIT FROM IT OR WILL BE HARD PRESSED TO COVER COSTS THAT'S A GOOD QUESTION SAYS AETNA'S MR KAPLAN 9307080020 930708 BUSINESS BRIEF GULF CANADA RESOURCES LTD ARCTIC DRILLING UNIT IS SOLD TO AMOCO CORP SUBSIDIARY GULF CANADA RESOURCES LTD SAID IT SOLD ITS ARCTIC DRILLING UNIT BEAUDRIL 1992 LTD TO A CANADIAN UNIT OF AMOCO CORP TERMS OF THE TRANSACTION BETWEEN THE TWO OIL AND GAS PRODUCERS WEREN'T DISCLOSED BUT SEVERAL ANALYSTS ESTIMATED THAT AMOCO PAID IN THE RANGE OF 50 MILLION CANADIAN DOLLARS 389 MILLION FOR THE BEAUDRIL ASSETS A SPOKESMAN FOR CALGARYBASED GULF CANADA SAID HE WAS COMFORTABLE WITH THE ANALYSTS' ESTIMATES GULF CANADA SAID IT SOLD ITS KULLUK DRILLING PLATFORM TWO SMALL ICEBREAKERS AND A CRANE BARGE BUT RETAINED TWO LARGER ICEBREAKERS AND A SECOND DRILLING PLATFORM THAT WERE ORIGINALLY PART OF ITS BEAUDRIL UNIT A GULF CANADA SPOKESMAN SAID THE COMPANY SOLD LESS THAN HALF OF ITS BEAUDRIL ASSETS WHICH AT THE END OF LAST YEAR HAD A BOOK VALUE OF 147 MILLION CANADIAN DOLLARS AFTER GULF WROTE DOWN ITS DRILLING ASSETS BY 60 MILLION CANADIAN DOLLARS GULF SAID IT IS WITHDRAWING FROM THE ARCTIC DRILLING BUSINESS AND THAT ITS REMAINING BEAUDRIL ASSETS ARE FOR SALE 9307080019 930708 BUSINESS BRIEF NOVELL INC SOFTWARE MAKER FLUENT INC IS BOUGHT FOR 175 MILLION THE CLOSELY HELD FLUENT IS BASED IN NATICK MASS NOVELL PROVO UTAH MAKES COMPUTERNETWORKING SOFTWARE NOVELL SAID THE ACQUISITION BRINGS IT CLOSER TO THE GOAL OF ENABLING NETWORK USERS TO CALL UP MULTIMEDIA SERVICES WITHOUT HAVING TO RELY ON SYSTEMS BASED ON COMPACT DISKS 9307080018 930708 TECHNOLOGY BRIEF PFIZER INC DOCTORS WILL GET FREE DOSES OF ANTIBIOTIC FOR TB PATIENTS PFIZER INC SAID IT HAS BEGUN DISTRIBUTING THE ANTIBIOTIC STREPTOMYCIN FREE OF CHARGE TO PHYSICIANS FOR PATIENTS WITH TUBERCULOSIS PARTICULARLY THOSE INFECTED WITH STRAINS RESISTANT TO OTHER DRUGS ABOUT 200000 DOSES WITH A RETAIL VALUE OF ABOUT 7 A DOSE ARE EXPECTED TO BE DISTRIBUTED IN THE NEXT YEAR ACCORDING TO A PFIZER SPOKESWOMAN STREPTOMYCIN DISCOVERED IN THE 1940S WAS ONE OF THE EARLY ANTIBIOTICS AND ONE OF THE FIRST DRUGS TO BE EFFECTIVE IN TREATING TUBERCULOSIS DEMAND FOR STREPTOMYCIN GRADUALLY DECLINED OVER THE DECADES HOWEVER AS THE INCIDENCE OF TUBERCULOSIS DROPPED AND NEWER ANTIBIOTICS WITH FEWER SIDE EFFECTS WERE DEVELOPED PFIZER FINALLY DISCONTINUED SELLING STREPTOMYCIN IN 1990 WHEN THE EUROPEAN PRODUCER OF THE KEY COMPONENT OF THE MEDICINE RAN INTO MANUFACTURING PROBLEMS THE PFIZER SPOKESWOMAN SAID 9307080016 930708 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 5/8 HIGH 3 LOW 3 5/8 NEAR CLOSING BID 3 3/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 59 DAYS 310 60 TO 89 DAYS 312 90 TO 149 DAYS 315 150 TO 229 DAYS 330 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 317 30 DAYS 318 60 DAYS 320 90 DAYS CERTIFICATES OF DEPOSIT 261 ONE MONTH 268 TWO MONTHS 269 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 320 THREE MONTHS 335 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 7 60 DAYS 707 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 697 60 DAYS 707 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 9307080015 930708 SHANGHAI PETROCHEMICAL FILES FOR ADR OFFERING WASHINGTON CHINA'S LARGEST PETROLEUM COMPANY SHANGHAI PETROCHEMICAL CO FILED FOR AN INITIAL OFFERING OF 114 MILLION AMERICAN DEPOSITARY SHARES THE LISTING WOULD MAKE SHANGHAI PETROCHEMICAL ONE OF JUST A FEW DIRECT CHINESESTOCK INVESTMENT OPPORTUNITIES AVAILABLE IN THE US A PERSON FAMILIAR WITH THE PLAN SAID THE OFFER IS EXPECTED TO BE THE LARGEST EQUITY FINANCING YET FOR A CHINESE COMPANY AND THAT IT IS THE FIRST CHINESE FIRM TO DIRECTLY LIST ITS SHARES ON THE NEW YORK STOCK EXCHANGE THE COMPANY SAID IN A SECURITIES AND EXCHANGE COMMISSION FILING THAT EACH DEPOSITARY SHARE REPRESENTS 74 CLASS H ORDINARY SHARES AND IS IMMEDIATELY EXCHANGEABLE FOR THE ORDINARY SHARES SHANGHAI PETROLEUM SAID IT EXPECTS AN INITIAL OFFERING PRICE BETWEEN 15 AND 17 A SHARE FOR THE DEPOSITARY SHARES THE FILING IS PART OF A GLOBAL OFFERING OF 168 BILLION CLASS H SHARES INCLUDING A SUBSCRIPTION RIGHTS OFFERING FOR 840 MILLION SHARES IN HONG KONG AND AN ADDITIONAL OFFERING OF 45 MILLION SHARES OUTSIDE THE US CANADA AND CHINA MERRILL LYNCH & CO IS GLOBAL COORDINATOR FOR THE OFFERING MERRILL DONALDSON LUFKIN & JENRETTE SECURITIES CORP GOLDMAN SACHS & CO AND PEREGRINE CAPITAL LTD ARE MANAGING UNDERWRITERS 9307080014 930708 MARKETING BRIEF ADVANCE PUBLICATIONS INC RANDOM HOUSE UNIT FORMS PARTNERSHIP WITH WORLDVIEW FODOR'S TRAVEL PUBLICATIONS INC A UNIT OF RANDOM HOUSE INC SAID IT FORMED A PARTNERSHIP WITH WORLDVIEW SYSTEMS CORP TO PROVIDE CUSTOMIZED TRAVEL INFORMATION TERMS OF THE DEAL WEREN'T DISCLOSED BUT KRISTINA PETERSON FODOR'S PUBLISHER SAID RANDOM HOUSE MADE A SUBSTANTIAL ENOUGH INVESTMENT IN WORLDVIEW THAT WE HAVE A SEAT ON THEIR BOARD WORLDVIEW A PRIVATE COMPANY BASED IN SAN FRANCISCO HAS PREVIOUSLY MARKETED ITS DATABASE OF DESTINATION INFORMATION TO ABOUT 800 TRAVEL AGENTS AND TRAVEL ARRANGERS THE JOINT VENTURE WILL WED WORLDVIEW'S TIMELY INFORMATION ON POPULAR RESTAURANTS SPECIAL FESTIVALS AND SO FORTH TO THE CONTENT OF FODOR'S TOUR BOOKS STARTING WITH THE 1994 EDITIONS AVAILABLE THIS FALL FODOR'S GUIDEBOOKS WILL INCLUDE ORDER FORMS FOR SUPPLEMENTARY CUSTOMIZED TRAVEL INFORMATION AT A COST OF 10 PER CITY SAID MS PETERSON RANDOM HOUSE IS A UNIT OF THE NEWHOUSE FAMILY'S ADVANCE PUBLICATIONS INC 9307080013 930708 LAW WDIA CORP SUES MCGRAWHILL WRITER FOR CREDITDATA STORY CINCINNATI WDIA CORP FACING A COMPLAINT FROM THE FEDERAL TRADE COMMISSION THAT IT FAILED TO PROTECT THE PRIVACY OF ITS CREDIT REPORTS SUED A FORMER BUSINESS WEEK WRITER WHO FIRST REPORTED SIMILAR ALLEGATIONS AND MCGRAWHILL INC THE MAGAZINE'S PUBLISHER THE 1989 COVER STORY CONTENDING THAT CREDIT INFORMATION IS EASY TO OBTAIN DIDN'T MENTION WDIA BUT THE COMPANY CONTENDS THAT THE STORY SPARKED THE INVESTIGATION THAT LED TO THE FTC COMPLAINT THE ARTICLE SAID THAT TWO FIRMS IT SELECTED TO TEST ITS CONTENTION MADE LITTLE OR NO EFFORT TO DETERMINE IF PRIVACY WAS BEING VIOLATED BEFORE PROVIDING WRITER JEFFREY ROTHFEDER WITH INFORMATION ABOUT SOME OF HIS COLLEAGUES AS WELL AS DATA ON FORMER VICE PRESIDENT DAN QUAYLE AND OTHER NOTABLES IN THE ARTICLE MR ROTHFEDER SAID HE FIBBED TO OBTAIN THE CREDIT DATA THE SUIT FILED IN A FEDERAL COURT IN OHIO CHARGES MR ROTHFEDER AND MCGRAWHILL WITH BREACH OF CONTRACT AND FRAUD IN HOW THEY OBTAINED THE CREDIT DATA AND ALSO CHARGES THEY VIOLATED OHIO'S CORRUPT PRACTICES ACT WDIA IS SEEKING APPROXIMATELY 500000 IN ACTUAL DAMAGES AND 45 MILLION IN PUNITIVE DAMAGES AMONG OTHER THINGS IT ALSO WANTS MR ROTHFEDER TO FORFEIT ANY PROFITS FROM A BOOK HE LATER WROTE ABOUT CREDIT REPORTS AND RELATED PRIVACY ISSUES DON RUBIN A SPOKESMAN FOR MCGRAWHILL SAID WE THINK THE SUIT IS WITHOUT MERIT AND WILL VIGOROUSLY DEFEND OURSELVES MR ROTHFEDER COULD NOT BE REACHED YESTERDAY LAST MONTH THE FTC FILED A COMPLAINT AGAINST WDIA CHARGING THAT THE COMPANY FAILS TO ADEQUATELY INSURE THAT PURCHASERS OF ITS SERVICES HAVE LEGALLY PERMISSIBLE PURPOSES FOR OBTAINING THE SENSITIVE DATA 9307080011 930708 CREDIT RATINGS EL PASO NATURAL GAS CO EL PASO TEXAS MOODY'S INVESTORS SERVICE INC SAID IT UPGRADED ITS RATINGS ON ABOUT 600 MILLION OF THIS PIPELINE COMPANY'S LONGTERM DEBT SENIOR UNSECURED DEBT WAS UPGRADED TO SINGLEA3 FROM BAA1 THE RATINGS AGENCY SAID THE UPGRADE REFLECTS THE COMPANY'S RELATIVELY LOW BUSINESS RISK AND STRONG GROWTH OPPORTUNITIES 9307080010 930708 POLITICS & POLICY CLINTON PLANS TO PICK VARMUS AS HEAD OF NIH BY MARILYN CHASE AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL PRESIDENT CLINTON PLANS TO NOMINATE HAROLD VARMUS A NOBEL PRIZEWINNING MICROBIOLOGIST TO BE DIRECTOR OF THE NATIONAL INSTITUTES OF HEALTH ADMINISTRATION OFFICIALS SAID IF CONFIRMED BY THE SENATE DR VARMUS 53 YEARS OLD WOULD OVERSEE A BUDGET OF 106 BILLION AND THE AWARDING OF GRANTS FOR RESEARCH PROBING VIRTUALLY ALL HUMAN DISEASES A PROFESSOR OF MICROBIOLOGY AND BIOCHEMISTRY AT THE UNIVERSITY OF CALIFORNIA AT SAN FRANCISCO DR VARMUS IS BETTER KNOWN FOR HIS BENCH RESEARCH THAN FOR HIS EXPERIENCE AS AN ADMINISTRATOR HE HAS ALSO FOUGHT TO KEEP BASIC RESEARCH FREE OF POLITICAL CONSTRAINTS IN APRIL HE HELPED TO CIRCULATE A LETTER WITH OTHER SCIENTISTS EXPRESSING CONCERN OVER PLANS TO CREATE AN OFFICE OF AIDS RESEARCH CONTENDING THAT SUCH AN OFFICE WOULD WIELD DISCRETIONARY POWER OVER THE FUNDING OF AIDS RESEARCH AND COULD MAKE NIH A POLITICAL BATTLEGROUND AMONG DISEASE INTEREST GROUPS AS NIH DIRECTOR HE WOULD HAVE TO OVERSEE THAT OFFICE RECENTLY CREATED BY CONGRESS UCSF OFFICIALS SAID DR VARMUS IS VACATIONING AND DOESN'T PLAN TO COMMENT UNTIL A FORMAL APPOINTMENT IS ANNOUNCED DR VARMUS SHARED THE 1989 NOBEL PRIZE FOR MEDICINE WITH LONGTIME UCSF COLLEAGUE J MICHAEL BISHOP THE AWARD ACKNOWLEDGED THEIR WORK ON VIRAL ONCOGENES THE GENETIC SEEDS OF CANCER THAT ARE FOUND IN VIRUSES AND IN THE GENETIC CODE OF ALL ANIMALS FROM FLIES TO FISH TO HUMANS IN MAKING ITS AWARD THE NOBEL COMMITTEE CITED THE RESEARCHERS' DISCOVERY OF THE CELLULAR ORIGINS OF RETROVIRAL ONCOGENES THESE ARE SPECIAL VIRUSES THAT PASS THEIR GENETIC INFORMATION IN A BACKWARD MANNER THE TWO SCIENTISTS OBSERVED THAT THE ROUS SARCOMA VIRUS A VIRUS THAT CAUSES CANCER IN CHICKENS IS ALSO FOUND IN NORMAL CELLS THEIR DISCOVERY THAT EVEN SINISTER ONCOGENES SOMETIMES PLAY A ROLE IN NORMAL CELL GROWTH AND DIFFERENTIATION HELPED SCIENTISTS TO UNDERSTAND THE INTERPLAY BETWEEN NORMAL GROWTH AND MALIGNANCY AND THE DISCOVERY HAS OFFERED DOCTORS NEW FOCAL POINTS FOR CANCER RESEARCH SINCE THE NOBEL PRIZEWINNING WORK DRS VARMUS AND BISHOP HAVE CONTINUED TO PROBE THE ROLE OF ONCOGENES BY CREATING TRANSGENIC MICE ENDOWED WITH EXTRA COPIES OF SUCH GENES DR VARMUS ALSO HAS WORKED ON A MOUSE MAMMARY TUMOR GENE CALLED INT1 HE PLAYED A BEHINDTHESCENES ROLE IN HELPING NAME THE AIDS VIRUS WHICH HAD BEEN THE SUBJECT OF A SEMANTIC TUGOFWAR BETWEEN FRENCH RESEARCHER LUC MONTAGNIER WHO CALLED IT LAV FOR LYMPHADENOPATHY ASSOCIATED VIRUS AND US RESEARCHER ROBERT GALLO WHO WANTED TO NAME IT HTLVIII FOR HUMAN TLYMPHOTROPIC VIRUS THE CONSENSUS NAME HE HELPED CHOOSE HUMAN IMMUNODEFICIENCY VIRUS OR HIV HAS STUCK MEANWHILE CONSERVATIVE GROUPS HELD A NEWS CONFERENCE TO DENOUNCE JOYCELYN ELDERS MR CLINTON'S CHOICE FOR SURGEON GENERAL DR ELDERS WHO WAS HEAD OF THE ARKANSAS DEPARTMENT OF HEALTH HAS BEEN A SUPPORTER OF ABORTION RIGHTS SHE HAS SET UP A PROGRAM OF SCHOOL HEALTH CLINICS IN ARKANSAS THAT DISPENSE CONDOMS IN DISTRICTS WHERE THE LOCAL SCHOOL BOARD ALLOWED IT DONNA SHALALA THE SECRETARY OF HEALTH AND HUMAN SERVICES ISSUED A STATEMENT STRONGLY DEFENDING DR ELDERS JOYCELYN ELDERS HAS AN OUTSTANDING REPUTATION AS A FORCEFUL AND REALISTIC LEADER FOR PUBLIC HEALTH THOSE WHO WOULD PORTRAY DR ELDERS AS BEING RADICAL OR OUT OF TOUCH WITH THE DESIRES OF THE AMERICAN PEOPLE ARE DISTORTING HER RECORD IN AN EFFORT TO PROVE THEIR CLAIMS SHE SAID 9307080009 930708 FINANCING BUSINESS MULTICARE COS MULTICARE COS WHICH OPERATES 34 LONGTERMCARE FACILITIES IN FIVE STATES SAID IT PLANS TO RAISE ABOUT 54 MILLION FROM AN INITIAL PUBLIC OFFERING THE HACKENSACK NJ HEALTHCARE COMPANY WILL USE PROCEEDS TO REPAY ABOUT 36 MILLION IN DEBT AND FOR OTHER PURPOSES AT MARCH 31 LONGTERM DEBT WAS 145 MILLION THE PROPOSED OFFERING OF 42 MILLION COMMON SHARES WILL BOOST SHARES OUTSTANDING TO 14 MILLION OF WHICH OFFICERS AND DIRECTORS WILL OWN ABOUT 61 MULTICARE HAD 1992 REVENUE OF 126 MILLION WITH NET INCOME OF 17 MILLION AND 99 MILLION OF INTEREST EXPENSE 9307080008 930708 THE END OF BANKING AS WE KNOW IT CHANGING CLIMATE TWO BIG RIVAL BANKS IN SOUTHEAST TAKE ON NEWAGE COMPETITORS NATIONSBANK AND FIRST UNION BATTLE THE MUTUAL FUNDS FINANCIALSERVICES GIANTS FINDING OUT WHO CAN SELL BY MARTHA BRANNIGAN AND ELEENA DE LISSER STAFF REPORTERS OF THE WALL STREET JOURNAL CHARLOTTE NC A TOUGH EXTENDED RACE BETWEEN THIS TOWN'S TWO BANKING GIANTS FIRST UNION CORP AND NATIONSBANK CORP IS CHANGING COURSE FOR YEARS THE CROSSTOWN RIVALS HAVE BEEN COMPETING AGAINST AND COPYING EACH OTHER WHEN NATIONSBANK ENTERED FLORIDA FIRST UNION FOLLOWED WHEN FIRST UNION WENT AFTER THE HIGHPROFILE SOUTHEAST BANK IN MIAMI NATIONSBANK BOUGHT THE FARBIGGER C&S/SOVRAN IN ATLANTA AND BEFORE EDWARD E CRUTCHFIELD JR FIRST UNION'S CHAIRMAN AND CHIEF EXECUTIVE COULD PUT THE FINISHING TOUCHES ON HIS NEW 42STORY HEADQUARTERS BUILDING HERE HUGH L MCCOLL HIS COUNTERPART AT NATIONSBANK BROKE GROUND FOUR BLOCKS AWAY FOR A 60STORY SKYSCRAPER THAT FIRST UNION PEOPLE DERIDE AS THE TAJ MCCOLL BUT DESPITE THEIR STRONG EARNINGS THE TWO BANKS HAVE RECENTLY FOUND NEW WORRIES MUTUAL FUNDS HAVE BEEN RAPIDLY STEALING AWAY BANKINGINDUSTRY DEPOSITS CREDIT CARDS ONCE A GOLD MINE FOR BANKS ARE BEING PEDDLED BY EVERYBODY FROM GENERAL MOTORS CORP TO AMERICAN TELEPHONE & TELEGRAPH CO LOAN GROWTH IS HELD DOWN BY BOTH THE LACKLUSTER ECONOMY AND BRISK COMPETITION INCLUDING THE GROWING INROADS FROM FINANCIALSERVICES BEHEMOTHS RANGING FROM MERRILL LYNCH & CO TO GENERAL ELECTRIC CAPITAL SERVICES MR CRUTCHFIELD CONCEDES THAT HE AND OTHER BANKERS MAY HAVE BEEN WATCHING THE WRONG THREAT WE BANKERS ARE THROWING SNOWBALLS AT EACH OTHER AND THERE'S SOMEONE OUT THERE WITH AN UZI HE SAYS SO CHARLOTTE'S TWO BIG BANKS HAVE QUIT RACING EACH OTHER INTO NEW AREAS OF THE COUNTRY AT LEAST FOR NOW AND HAVE ALL BUT GIVEN UP ON GETTING THE REGULATORY BREAKS THEY CONSIDER NECESSARY TO BECOME MORE COSTCOMPETITIVE INSTEAD THEY ARE PUSHING STOCK MUTUAL FUNDS FINANCIAL PLANNING AND OTHER PRODUCTS AND SERVICES NOT TRADITIONALLY OFFERED INDIVIDUAL CUSTOMERS THEY ARE PROVIDING CORPORATE CLIENTS WITH OPTIONS FUTURES AND VARIOUS HEDGING INSTRUMENTS THEY ARE INSISTING THAT THEIR BRANCH MANAGERS AND TELLERS ACT MORE LIKE SALESMEN AND THEY ARE CHARGING BROKERLIKE FEES FOR SERVICES THEY ONCE PRACTICALLY GAVE AWAY BY THE END OF THE DECADE NEITHER NATIONSBANK NOR FIRST UNION PLANS TO LOOK MUCH LIKE A BANK IF IT'S FINANCIAL SERVICES WE WANT TO OFFER IT MR CRUTCHFIELD SAYS AND NATIONSBANK INTENDS TO TURN ITSELF INTO TWO ENTITIES ONLY ONE OF WHICH WOULD BE BACKED BY FEDERAL DEPOSIT INSURANCE THEIR PLANS TELL A LOT ABOUT THE STRUCTURAL CHANGES THAT ARE AFOOT IN THE BANKING INDUSTRY DESPITE A CURRENT TREND OF STRONG EARNINGS BOTH COMPANIES HAD HUMBLE ORIGINS IN CHARLOTTE AS NORTH CAROLINA NATIONAL BANK AND FIRST UNION NATIONAL BANK FOR DECADES THEY YEARNED TO JOIN THE BIG LEAGUES WITH THEIR WINSTONSALEM NEIGHBOR WACHOVIA CORP WHICH SERVED SUCH TOBACCO CHIEFTAINS AS RJ REYNOLDS WE ALWAYS THOUGHT WE WERE COMPETING AGAINST WACHOVIA UNTIL WE GOT SO MUCH BIGGER AND LOOKED BACK MR MCCOLL SAYS AIDED BY LIBERAL STATEWIDE BRANCHING LAWS AND THE ADVENT OF REGIONAL INTERSTATE BANKING BOTH HAD GROWN MUCH LARGER THAN WACHOVIA FIRST UNION GOBBLED UP SO MANY ACQUISITIONS 35 SINCE 1985 THAT MR CRUTCHFIELD WAS NICKNAMED FAST EDDIE MR MCCOLL'S PURCHASES WERE FEWER BUT MORE ATTENTIONGRABBING IN 1988 HE SEIZED UPON A 1 BILLION TAX LOOPHOLE TO ACQUIRE FIRST REPUBLICBANK OF DALLAS AND A HUGE CHUNK OF THE TEXAS MARKET IN CHARLOTTE THE TWO RIVALS TRY TO PLAY DOWN THE COMPETITION BUT IT IS OBVIOUS TO EVERYBODY IN TOWN MOST PEOPLE KNOW THE COMPARATIVE RANKINGS OF NATIONSBANK FIFTH IN THE COUNTRY IN ASSETS AND FIRST UNION NINTH AS READILY AS THE HORNETS WINLOSS RECORD IN PRO BASKETBALL MOST KNOW THAT NATIONSBANK WAS BANKER TO THE HORNETS UNTIL MR MCCOLL ANGERED THE TEAM'S OWNER GEORGE SHINN BY DECIDING TO HELP FINANCE ANOTHER EFFORT TO BRING IN A NATIONAL FOOTBALL LEAGUE EXPANSION TEAM NOW THE HORNETS BANK AT FIRST UNION CIVIC LEADERS LOVE TO PLAY THE TWO OFF AGAINST EACH OTHER ROBERT ALBRIGHT THE PRESIDENT OF JOHNSON C SMITH UNIVERSITY SAT MR MCCOLL AND MR CRUTCHFIELD ACROSS THE SAME TABLE AT A 1992 FUNDRAISING LUNCHEON BEFORE THE MEAL WAS OVER HE HAD MILLIONDOLLAR PLEDGES FROM BOTH FOR FIRST UNION GROWING UP IN CHARLOTTE IN THE SHADOW OF ITS NEMESIS HAS BEEN LIKE BEING SCOTTIE PIPPEN FOR THE CHICAGO BULLS PERENNIALLY ECLIPSED BY MICHAEL JORDAN SAYS KEVIN KENNELLY A FORMER NATIONSBANK EXECUTIVE WHO NOW RUNS A SMALL COMMUNITY BANK HERE ANYWHERE ELSE THEY'D BE THE STAR THE COMPETITION HAS SPURRED THE BREAKNECK GEOGRAPHIC EXPANSION EXPLOITING A LOOPHOLE IN THE BAN ON INTERSTATE BANKING NATIONSBANK HAD BEEN THE FIRST INTO FLORIDA IN 1982 FIRST UNION FOLLOWED THREE YEARS LATER AS SOON AS IT LEGALLY COULD IT ALSO MOVED INTO SOUTH CAROLINA AND TENNESSEE AMONG OTHER PLACES AFTER NATIONSBANK STORMED INTO TEXAS IT ALSO ACQUIRED C&S/SOVRAN AND WITH IT HUGE MARKETS IN GEORGIA SOUTH CAROLINA AND ELSEWHERE AS THE DUST HAS SETTLED IN THE PAST 18 MONTHS HOWEVER IT BECAME CLEAR THAT THE BANKING INDUSTRY HAD CHANGED IRREVOCABLY NEW COMPETITORS HAD BEEN PROLIFERATING FOR SOME TIME BUT A CONVERGENCE OF ECONOMIC AND POLITICAL FACTORS HAS TIPPED THE SCALES IN THEIR FAVOR CORPORATE DELEVERAGING WITH ITS DEPRESSING EFFECTS ON BANKS' BUSINESS LOANS HAS TURNED INTO AN ENDURING TACTIC LOW INTEREST RATES ARE ACCELERATING THE OUTFLOW OF DEPOSITS TO COMPETITORS SUCH AS MUTUAL FUNDS THOUGH THEY HELP BANK PROFITS IN THE SHORT RUN BOTH NATIONSBANK AND FIRST UNION ARE VERY PROFITABLE NATIONSBANK'S 1992 NET SURGED 467 FROM THE DEPRESSED 1991 LEVEL TO 115 BILLION OR 460 A SHARE AND FIRST UNION'S ROSE 62 TO 5152 MILLION OR 372 A SHARE AT BOTH NET INTEREST MARGINS WERE HIGH AND PROBLEM LOANS FELL BOTH HAVE STRONG CAPITAL AND RESERVES AND THEIR STOCKS HAVE CLIMBED SHARPLY OVER THE PAST YEAR THOUGH THEY GAVE BACK PART OF THE GAINS RECENTLY AS BANK SHARES WEAKENED YET DESPITE THE GOOD TIMES KENNETH D LEWIS A TOP NATIONSBANK EXECUTIVE SAYS I WAKE UP THINKING OF THE COMPETITION TAKING FOOD OFF OUR TABLES AND NO HELP SEEMS ON THE WAY FROM WASHINGTON NATIONWIDE BANKING AND DEREGULATION HAVE ALL BUT DROPPED OFF THE AGENDA EVEN THOUGH FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN HAS BLAMED A REGULATORY STRAITJACKET FOR PUTTING BANKS AT A COMPETITIVE DISADVANTAGE INDEED MR MCCOLL SAYS HE COULD SAVE 50 MILLION A YEAR IF CURRENT LAW WERE CHANGED AND HE WERE ALLOWED TO MERGE HIS 10 BANK UNITS AND IF HE COULD REMOVE SOME OF NATIONSBANK'S OPERATIONS FROM THE SCRUTINY OF THE FEDERAL DEPOSIT INSURANCE CORP HE SAYS A GREAT DEAL OF THE PROBLEMS WOULD GO AWAY EVEN NOW NATIONSBANK IS PREPARING TO SPLIT INTO TWO ENTITIES UNDER ONE HOLDING COMPANY ONE ENTITY WOULD CONSIST OF THE TRADITIONAL BANKING OPERATIONS STILL FUNDED WITH INSURED DEPOSITS AND SUBJECT TO FULL REGULATORY SCRUTINY THE OTHER WOULD INCLUDE EVERYTHING ELSE WOULD BE FUNDED IN THE OPEN MARKET AND IF MR MCCOLL HAS HIS WAY WOULD THEREBY ESCAPE MUCH REGULATION YOU MAY PAY MORE FOR FUNDS BUT YOU GET RID OF THE HIDDEN COSTS OF 800000 REGULATIONS HE SAYS AT FIRST UNION MR CRUTCHFIELD IS THINKING NOT OF MORE BIG ACQUISITIONS BUT OF DRIVING DOWN COSTS HE HAS CAMPAIGNED AGAINST VOICE MAIL HE GIVES BONUSES TO EMPLOYEES WHO CUT RED TAPE HE WORRIES THAT SOLVING A CUSTOMER'S PROBLEM CAN TAKE A WEEK RATHER THAN 15 MINUTES SIZE YIELDS ECONOMIES OF SCALE BUT HE WONDERS WHETHER IN THE NEW BANKING ENVIRONMENT BIGGEST IS NECESSARILY BEST IT SCARES THE HELL OUT OF ME HE SAYS THAT FIRST UNION MAY WIND UP JUST A BIG OLD UNRESPONSIVE COMPANY IN THE BANKING INDUSTRY HE BELIEVES WE'LL LIVE OR DIE ON OUR CUSTOMER SERVICE TO THAT END NATIONSBANK AND FIRST UNION ARE ACTING LESS AND LESS LIKE BANKS BOTH ARE PEDDLING DECIDEDLY UNBANKLIKE PRODUCTS SUCH AS MUTUAL FUNDS AS PART OF A NEW JOINT VENTURE WITH DEAN WITTER DISCOVER & CO NATIONSBANK PLANS TO HAVE 600 DEAN WITTER AND NATIONSBANK BROKERS SELLING MUTUAL FUNDS AND OTHER SECURITIES OUT OF ITS BRANCHES BY YEAR END RIGHT NOW THE VENTURE IS SMALL POTATOES BUT BY THE FIFTH YEAR NATIONSBANK SAYS IT SHOULD EARN 50 MILLION TO 60 MILLION SIMILARLY FIRST UNION IS HIRING 225 BROKERS BY YEAR END AND INTENDS TO TRAIN AN ADDITIONAL 2600 BRANCH MANAGERS AND OTHER EMPLOYEES TO SELL MUTUAL FUNDS OUT OF ALL ITS 1400 BRANCHES BY THE 1994 THIRD QUARTER FOR CORPORATE CUSTOMERS BOTH BANKS NOW OFFER DERIVATIVES FINANCIAL CONTRACTS WHOSE VALUES ARE DERIVED FROM UNDERLYING SECURITIES OR COMMODITIES THAT CAN BE USED TO HEDGE AGAINST INTERESTRATE AND CURRENCY FLUCTUATIONS FIRST UNION AFTER USING DERIVATIVES TO MANAGE INTERESTRATE RISK IN ITS OWN PORTFOLIO FOR FIVE YEARS BEGAN OFFERING THEM TO CUSTOMERS IN APRIL FROM ITS OWN TRADING FLOOR DERIVATIVES MAY SEEM EXOTIC MR CRUTCHFIELD SAYS BUT THEY ARE BECOMING A FUNDAMENTAL PART OF FINANCE IF YOU'RE NOT OFFERING IT TO THE CUSTOMER YOU'RE NOT OFFERING WHAT'S GOING TO BE A BASIC PRODUCT NATIONSBANK NEVER USED DERIVATIVES MUCH FOR ITS OWN PORTFOLIO BUT THREE MONTHS AGO IT AGREED TO ACQUIRE CHICAGO RESEARCH & TRADING GROUP LTD WHICH DEALS IN OPTIONS SWAPS AND OTHER HEDGING INSTRUMENTS AND IN GOVERNMENT SECURITIES IT SAYS THE ACQUISITION WILL GIVE IT INSTANT CREDIBILITY IN A MAJOR GROWTH BUSINESS ALL THIS INVOLVES A LOT MORE SELLING THAN MOST BANKERS ARE USED TO NO LONGER WILL PERSONAL BANKERS AND TRUST OFFICERS AT EITHER BANK WAIT BEHIND WOODEN DESKS FOR CUSTOMERS TO BRING IN DEPOSITS NATIONSBANK IS DOING PERSONALITY TESTING TO DETERMINE WHETHER PROSPECTIVE BRANCH EMPLOYEES CAN SELL FIRST UNION DISPATCHES MYSTERY SHOPPERS TO BRANCHES TO RATE THE SERVICE AND LOOK FOR WARM SMILES AND FIRM HANDSHAKES BOTH BANKS ARE SHIFTING COMPENSATION AWAY FROM SALARIES TO INCENTIVEBASED PAY BOTH ALSO ARE TRYING HARD TO RAISE FEE INCOME FROM TRUST SERVICES CASHMANAGEMENT BUSINESS AND THE LIKE SO THEY CAN RELY LESS HEAVILY ON INTEREST EARNINGS NATIONSBANK HOPES TO LIFT FEE INCOME TO 50 FROM 30 OF ITS TOTAL AND BOTH ARE STRIVING TO CUT COSTS THEIR HUGE INFRASTRUCTURES WILL HELP THEM IN BATTLING THE MERRILL LYNCHES THEY BELIEVE BUT ONLY IF THEY CAN OFFSET THE ADDED REGULATORY COSTS JERRY SCHMITT A FIRST UNION EXECUTIVE VICE PRESIDENT SAYS HIS DEPARTMENT THINKS CAREFULLY ABOUT EVEN SMALL PURCHASES ONE SENIOR EXECUTIVE RECENTLY QUESTIONED THE COST OF HAVING HOT TAP WATER IN EACH OF THE 1400 BRANCHES NATIONSBANK IS SLASHING THE NUMBER OF CONSUMER LOAN AND DEPOSIT PRODUCTS TO ABOUT 20 FROM MORE THAN 100 TO BECOME LIKE MCDONALD'S WITH AN UNDERSTANDABLE MENU AND TO TRIM ADMINISTRATIVE COSTS HOW SUCCESSFUL THE BANKS' LATEST STRATEGIES ARE WILL REMAIN TO BE SEEN MUTUAL FUNDS MAY NOT PROVE AS PROFITABLE AS THEY HOPE MR LEWIS OF NATIONSBANK CONCEDES THAT IN THE PAST THE HERD INSTINCT AMONG BANKERS AND THE OVERCAPACITY IN THE INDUSTRY LED TO EXCESSES ONCE BANKS LATCHED ONTO NEW PRODUCTS IN ADDITION REGULATORS ARE ALREADY LOOKING MORE CLOSELY AT THE ACTIVITIES IN DERIVATIVES SOME BELIEVE BANKS MAY BE TAKING ON MORE CREDIT AND INTERESTRATE RISK THAN THEY ADMIT AND SOME CUSTOMERS DISLIKE THE HARD SELL BUT THE BANKERS MAY HAVE LITTLE CHOICE THERE ARE MILLIONS OF PEOPLE VOTING WITH THEIR DEPOSITS AND WITH THEIR FEET SAYING TRADITIONAL BANKS AREN'T GIVING US WHAT WE WANT MR CRUTCHFIELD SAYS 9307080007 930708 LEISURE & ARTS FILM SECRET SERVICE MAN SEEKS REDEMPTION BY JULIE SALAMON EIGHT YEARS AGO REVIEWING A CLINT EASTWOOD FILM THE CRITIC PAULINE KAEL RECALLED READING AN INTERVIEW WITH SERGIO LEONE IN WHICH THE DIRECTOR EXPLAINED THE DIFFERENCE BETWEEN CLINT EASTWOOD AND ROBERT DE NIRO BOBBY FIRST OF ALL IS AN ACTOR CLINT FIRST OF ALL IS A STAR SAID MR LEONE BOBBY SUFFERS CLINT YAWNS MS KAEL IN HER REVIEW OF THE ARTY WESTERN PALE RIDER WORRIED THAT THIS WORLDCLASS YAWNER HAD BECOME TOO SELFCONSCIOUS TO YAWN EAGER FOR THE WORLD'S GOOD OPINION SINCE THEN MR EASTWOOD HAS PRETTY MUCH SEWN UP THE WORLD'S GOOD OPINION HE WON OVER THE ANTIVIOLENCE ANTICLINTS WITH BIRD HIS SENSITIVE AND MUSICALLY INTELLIGENT PICTURE ABOUT JAZZMAN CHARLIE PARKER AND LAST YEAR'S UNFORGIVEN WON OSCARS AND AUDIENCE EVEN CRITICS ALL OF WHICH MAY OR MAY NOT EXPLAIN THE UNSELFCONSCIOUSNESS OF MR EASTWOOD'S PERFORMANCE IN IN THE LINE OF FIRE HE'S ACTUALLY CHARMING TELLING THE MUCH YOUNGER WOMAN HE'S COURTING WITHOUT BEING EITHER IRONIC OR INGRATIATING MAYBE I VOWED NEVER TO LET MY CAREER COME BETWEEN ME AND A WOMAN OF COURSE THIS ROMANTIC IDEA ESPECIALLY COMPELLING COMING FROM A HEMAN ICON LIKE MR EASTWOOD ISN'T CENTRAL TO IN THE LINE OF FIRE A THRILLER BUT IT IS ONE OF THE MANY TOUCHES THAT MAKES THIS MOVIE ONE OF THE MOST SATISFYING HOLLYWOOD PICTURES I'VE SEEN IN A VERY LONG TIME THE MOVIE'S IDEA AND STRUCTURE AREN'T ESPECIALLY INGENIOUS THIS IS THE STORY OF FRANK HORRIGAN MR EASTWOOD A FICTIONAL SECRET SERVICE AGENT WHO HAD THE MISFORTUNE TO BE GUARDING PRESIDENT KENNEDY WHEN HE WAS ASSASSINATED THIRTY YEARS LATER THE AGENT IS STILL HAUNTED BY HIS FAILURE TO ACT THOUGH HE NO LONGER GUARDS THE PRESIDENT HE ASKS FOR HIS OLD JOB BACK WHEN HE STUMBLES ACROSS A WOULDBE ASSASSIN WHO SEEMS TO HAVE THE POTENTIAL TO CARRY OUT HIS THREAT THE SCRIPT FALLS BACK ON THE OLD DEVICE OF HAVING THE KILLER MIRROR THE PROTECTOR HERE THE PRESIDENTIAL STALKER IS A FORMER AGENT FOR THE CENTRAL INTELLIGENCE AGENCY TRAINED TO KILL BY THE GOVERNMENT NOW TURNING HIS SKILL TO ATTACK THE HEAD OF THE GOVERNMENT HE FEELS HAS BETRAYED HIM YET WHAT MIGHT HAVE SEEMED SLICK AND SUPERFICIAL RESONATES WITH THE SENSE THAT SOMEONE HAS ACTUALLY THOUGHT ABOUT THESE IDEAS THAT THE PICTURE DIDN'T COME PREPACKAGED READY TO ASSEMBLE ON THE OTHER HAND THIS ISN'T AN OLIVER STONE FILM DESIGNED FOR MASS POLITICAL CONVERSION THIS IS A MOVIE IN WHICH PLOT AND POLITICS ARE PUT TO THE SERVICE OF PSYCHOLOGY AND CHARACTER DEVELOPMENT IN A MORE OR LESS CONVENTIONAL WAY BUT EXCELLENTLY CONVENTIONAL SOMETHING THAT HAS BECOME A RARE ACHIEVEMENT WOLFGANG PETERSEN WHO DIRECTED MADE HIS MARK IN THE US IN 1981 WITH DAS BOOT A HARROWING PICTURE ABOUT A GERMAN UBOAT DURING WORLD WAR II BUT HE LOST HIS WAY IN THIS COUNTRY MAKING SUCH FORGETTABLE FILMS AS ENEMY MINE AND SHATTERED WITH IN THE LINE OF FIRE HOWEVER MR PETERSEN SEEMS TO HAVE RECOVERED HIS TIMING THE MOVIE IS BEAUTIFULLY PACED ALLOWING FOR A REAL FEELING OF HUMANITY TO DEVELOP NOT MERELY STOPPING FOR OBLIGATORY HUMANIZING MILLISECONDS THE WAY SO MANY THRILLERS DO THE PICTURE IS FILLED WITH GRACE NOTES AND GRACEFUL PERFORMANCES FOR EXAMPLE RENE RUSSO THE WOMAN WHO MATCHED SCARS WITH MEL GIBSON IN LETHAL WEAPON III HAS THE PART OF THE SECRET SERVICE WOMAN THE ROMANTIC INTEREST SHE'S NOT ONSCREEN THAT MUCH BUT SHE LEAVES ENOUGH SPARK IN HER WAKE TO MAKE A BIG IMPRESSION JEFF MAGUIRE WHO WROTE THE SCRIPT HAS ONLY THE DRAFT OF A 1981 JOHN HUSTON FILM VICTORY AND AN OBSCURE CANADIAN FILM TO HIS CREDIT HE'S APPARENTLY WAITED A LONG TIME TO SEE HIS NAME ATTACHED TO A BIG MOVIE LIKE THIS AND MAYBE THAT PERSONAL FRUSTRATION IF IT EXISTS HELPED GIVE HIS SCRIPT ITS UNDERSTANDING OF LOST IDEALISM THE STORY'S CLEVEREST INVENTION AND ITS MOST IMPORTANT IS THE VILLAIN PLAYED BY JOHN MALKOVICH THE EXCIA MAN WHO WANTS TO BE AN ASSASSIN HE'S WRITTEN AS A BRILLIANT PSYCHOPATH AND MR MALKOVICH HAS A GREAT TIME MAKING HIM AS CREEPY AS POSSIBLE HIS CHARACTER'S DISILLUSIONMENT HAS TURNED TO A CLEVERLY ARTICULATED RAGE WHICH MR MALKOVICH'S GENTLE VOICE TRANSFORMS INTO SILKY MENACE MR EASTWOOD'S SECRET SERVICE MAN HORRIGAN DOESN'T HAVE MUCH FEELING FOR THE PRESIDENT WHOSE LIFE HE'S PROTECTING HE CLEARLY ONCE ADORED JFK BUT NOW HE'S PROTECTING AN OFFICE NOT A MAN THAT GIVES A HOLLOW FEELING TO WHAT HE DOES BUT DOESN'T AFFECT HIS PROFESSIONALISM THERE'S AN ACHE ABOUT HIM THAT GOES BEYOND HIS WEARY AWARENESS OF AGING MR EASTWOOD MAKES YOU SEE FRANK HORRIGAN AS A MAN WHO ONCE WAS A CLINT EASTWOOD CHARACTER A WORLDCLASS YAWNER WHO CAN NO LONGER GET BY ON A YAWN HE'LL NEVER SUFFER THE WAY DE NIRO SUFFERS BUT WHAT HE DOES HERE IS JUST TERRIFIC USUALLY WHEN ONE SEES A FILM ABOUT A FILMMAKER CHAPLIN FOR EXAMPLE IT'S ALMOST UNBEARABLE TO SEE SNIPPETS OF THE SUBJECT'S FILMS WITHIN THE BIOGRAPHY THEY ONLY REMIND YOU OF HOW INFERIOR THE FILM YOU ARE WATCHING IS IN THE CASE OF JACQUOT AGNES VARDA'S LOVING ACCOUNT OF THE CHILDHOOD OF JACQUES DEMY THE UMBRELLAS OF CHERBOURG THE TRANSITION IS EASY MS VARDA NOT ONLY UNDERSTANDS MR DEMY'S FILMS SHE UNDERSTANDS HIS LIFE AND MAKES FLITTING BACK AND FORTH BETWEEN HIS FILMS AND HERS A PLEASURE SO IT ISN'T NECESSARY TO KNOW THAT MS VARDA IS MARRIED TO MR DEMY IN ORDER TO ENJOY THIS BEAUTIFULLY CONSTRUCTED STORY OF A MOVIEMAD BOY AND HIS INDULGENT FAMILY AND HOW HE NURTURED HIS PASSION FOR FILM ON THE OTHER HAND THE KNOWLEDGE THAT SUBJECT AND DIRECTOR ARE MARRIED ADDS TO THE FILM'S ROMANTICISM AND POIGNANCY THOUGH MR DEMY GREW UP DURING WORLD WAR II HE WAS IN MANY WAYS AN INNOCENT IN THOSE DAYS BEFORE TELEVISION BEGAN TO EXPLAIN AND REDUCE THE DRAMA OF LIFE IT SEEMS FITTING THAT A SWEET ENCHANTER LIKE MR DEMY WOULD SPEND HIS ADULT LIFE WITH SOMEONE WHO OBVIOUSLY LOVES AND UNDERSTANDS FILMS SOMEONE LIKE MS VARDA VIDEO TIP MR DEMY WAS GREATLY INFLUENCED BY THE MUSICAL THEATER THE UMBRELLAS OF CHERBOURG STARRING CATHERINE DENEUVE IS AN OPERATIC SPECTACLE WITH EVERY LINE SUNG NOT SPOKEN OTHERS LIKE HIS FIRST FILM LOLA ONLY SEEM LIKE MUSICALS WITH THEIR THEATRICAL TIMING AND EPHEMERAL MAGIC 9307080006 930708 WEDNESDAY'S MARKETS INDUSTRIALS GAIN 2574 BONDS MIXED EASING INFLATION FEARS BOOST MOST INDEXES FUTURES PRICES SLIP BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL RECEDING FEARS ABOUT INFLATION BOOSTED MOST MAJOR STOCK MARKET AVERAGES BONDS ENDED LITTLE CHANGED AND THE DOLLAR WAS MIXED BUOYED BY A RALLY IN FINANCIAL STOCKS THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 2574 POINTS TO 347567 AND THE STANDARD & POOR'S 500STOCK INDEX GAINED 140 TO 44283 BUT A ROUT IN TECHNOLOGY ISSUES LED BY SOFTWARE SUPERSTAR MICROSOFT SENT THE NASDAQ COMPOSITE INDEX REELING 343 POINTS TO 69879 THE INDUSTRIAL AVERAGE AND THE S&P BOUNCED BACK FROM TUESDAY'S INFLATION SCARE SAID JOSEPH MCALINDEN STOCK STRATEGIST AT DILLON READ THOUGH GOLD PRICES INCHED HIGHER YESTERDAY THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 FUTURES CONTRACTS EASED SLIPPING 007 TO 21723 AND CRUDE OIL PRICES TUMBLED BOND AND STOCK TRADERS TEND TO FOCUS ON OIL GOLD AND THE CRB INDEX AS LEADING INDICATORS OF INFLATION MR MCALINDEN SAID STOCKS COULD RALLY FURTHER IF THE NATION'S RETAILERS REPORT STRONG CHAIN STORE SALES TODAY BUOYANT DATA WOULD HELP DISPEL INVESTOR FEARS THAT THE ECONOMY IS SINKING TOWARD ANOTHER RECESSION TIMOTHY WEST AN ANALYST AT SG WARBURG SAID THE MARKET MAY ALSO RECEIVE SOME SUPPORT FROM A NUMBER OF ENCOURAGING TECHNICAL FACTORS FOR INSTANCE MR WEST SAID THERE HAS BEEN AN INCREDIBLE AMOUNT OF PUT OPTION BUYING RECENTLY A PUT OPTION GIVES THE BUYER THE RIGHT TO SELL A SPECIFIED NUMBER OF SHARES AT A FIXED PRICE WITHIN A SPECIFIED TIME AND IS USED AS A HEDGE AGAINST FALLING PRICES HEAVY BUYING OF SUCH PROTECTION IS OFTEN A CONTRARY INDICATOR HE SAID WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 025 TO 10508 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2484 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1016 ISSUES ROSE AND 908 FELL BONDS WERE LITTLE CHANGED THE TREASURY'S BENCHMARK 30YEAR ISSUE INCHED UP LESS THAN AN EIGHTH OF A POINT OR LESS THAN 125 FOR EACH 1000 FACE AMOUNT TO YIELD 667 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17065 MARKS AND 10765 YEN COMPARED WITH 17050 MARKS AND 10880 YEN TUESDAY 9307080005 930708 WHAT'S NEWS BUSINESS AND FINANCE TRADE NEGOTIATORS FROM SEVEN MAJOR INDUSTRIAL NATIONS AGREED TO LOWER TARIFFS ON A RANGE OF MANUFACTURED PRODUCTS PUSHING LONGSTALLED WORLD TRADE TALKS A STEP FORWARD BUT THE US THE EUROPEAN COMMUNITY AND JAPAN FAILED TO RESOLVE THE MOST CONTENTIOUS ISSUES WHICH WOULD HAVE REQUIRED THE GOVERNMENTS TO FACE DOWN POWERFUL DOMESTIC LOBBIES CHARLES KNAPP WAS CONVICTED ON CHARGES THAT HE DUPED AN ARIZONA THRIFT INTO LENDING HIM 15 MILLION THE FORMER THRIFT OPERATOR'S FINANCIAL ADVISER AND OUTSIDE ACCOUNTANT WERE ALSO CONVICTED ON SIMILAR CHARGES TANDY HIRED FORMER RESTAURANT EXECUTIVE LEONARD ROBERTS AS PRESIDENT OF ITS HUGE RADIO SHACK DIVISION THE CONSUMER ELECTRONIC COMPANY'S HIRING OF THE FORMER CHIEF OF SHONEY'S AND ARBY'S RAISED QUESTIONS ABOUT HOW ATTUNED HE IS TO RADIO SHACK WHICH MAKES UP THE BULK OF TANDY'S SALES UNITED AIR SAID ITS TRAFFIC GROWTH SLOWED SUBSTANTIALLY IN JUNE AND WARNED THAT A KEY MEASURE OF PROFITABILITY WAS WEAKER THAN ANTICIPATED THE UAL UNIT'S ANNOUNCEMENT HELPED SEND AIRLINE STOCKS LOWER FOR THE SECOND DAY IN A ROW THE DOW JONES INDEX OF 20 TRANSPORTATION STOCKS SLID 19 STOCKS RALLIED ON RECEDING INFLATION FEARS THE DOW JONES INDUSTRIALS CLIMBED 2574 POINTS TO 347567 BOND PRICES ENDED LITTLE CHANGED UNION MILITANCY APPEARS TO BE SURGING AFTER MORE THAN A DECADE OF RETREAT THOUGH US UNION MEMBERSHIP HAS SHOWN SMALL GAINS IT SHRANK LAST YEAR AS A PROPORTION OF THE WORK FORCE TO 158 FROM 23 IN 1980 MAJOR BANKS EXPECT TO REPORT ANOTHER ROUND OF STRONG QUARTERLY EARNINGS AS THEY CONTINUE TO BE HELPED BY SHARPLY LOWER BADDEBT COSTS WANG LABORATORIES FILED A REORGANIZATION PLAN UNDER WHICH IT WOULD LEAVE BANKRUPTCY COURT BY SEPT 30 AND POST A 199 MILLION FISCALYEAR LOSS MCI MUST DISCLOSE ALL OF ITS LONGDISTANCE RATES A FEDERAL JUDGE RULED IN A CASE BROUGHT BY RIVAL AT&T THAT CHARGED MCI'S PRACTICE KEPT AT&T AT A COMPETITIVE DISADVANTAGE MONEY MANAGERS POSTED A 15 AVERAGE RETURN FOR THE SECOND QUARTER A RARE INSTANCE IN WHICH MONEY MANAGERS ACTUALLY BEAT THE STOCK MARKET BY MORE THAN A FULL PERCENTAGE POINT SOME MEXICAN AND US ENVIRONMENTALISTS PROPOSED A COMPROMISE UNDER THE FREE TRADE ACCORD CALLING FOR FINES AGAINST INDIVIDUAL POLLUTERS INSTEAD OF TOUGHER TRADE SANCTIONS THE EC BLOCKED ITALY'S PLAN TO CANCEL THE MASSIVE DEBT OWED BY STATEOWNED STEELMAKER ILVA AND CHALLENGED OTHER SUBSIDIES ITALY IS GIVING ILVA SOUTHWESTERN PUBLIC SERVICE FACES A CUT IN CREDIT RATINGS IF ITS 22 BILLION BID FOR EL PASO ELECTRIC SUCCEEDS TOKYO SHARE PRICES DECLINED WEDNESDAY THE NIKKEI INDEX DROPPED 10911 POINTS TO 1972067 LONDON STOCKS ENDED MIXED WHILE FRANKFURT SHARES ROSE SHARPLY TO A HIGH FOR THIS YEAR BONDS LEHMAN BROTHERS TREASURY INDEX 528531 UNCHANGED COMMODITIES OIL 1802 A BARREL OFF 27 CENTS DOW JONES FUTURES INDEX 12722 UP 040 SPOT INDEX 12549 OFF 034 DOLLAR 10765 YEN OFF 118 17065 MARKS UP 00015 9307080003 930708 WHO'S NEWS CLINTON IS EXPECTED TO APPOINT CHATER TO SOCIAL SECURITY POST WASHINGTON PRESIDENT CLINTON PLANS TO NAME SHIRLEY CHATER PRESIDENT OF TEXAS WOMAN'S UNIVERSITY AS COMMISSIONER OF THE SOCIAL SECURITY ADMINISTRATION ACCORDING TO ADMINISTRATION OFFICIALS MS CHATER 60 YEARS OLD IS SAID TO BE BACKED FOR THE JOB BY TEXAS GOV ANN RICHARDS LAST YEAR SHE HEADED A HEALTH POLICY TASK FORCE FOR GOV RICHARDS MS CHATER RECEIVED A PHD FROM THE UNIVERSITY OF CALIFORNIA BERKELEY AND A MASTER'S DEGREE IN NURSING FROM THE UNIVERSITY OF CALIFORNIA SAN FRANCISCO AS SOCIAL SECURITY COMMISSIONER SHE WOULD OVERSEE THE DISTRIBUTION OF MORE THAN 300 MILLION IN BENEFITS TO MORE THAN 44 MILLION ELDERLY DISABLED AND POOR PEOPLE IF NOMINATED MS CHATER MUST BE CONFIRMED BY THE SENATE 9307080002 930708 WHAT'S NEWS WORLDWIDE FEDERAL OFFICIALS SAID CROP LOSSES FROM MIDWEST FLOODS ARE NEARING 1 BILLION THE CROP DAMAGE FROM FLOODING ALONG THE MISSISSIPPI IS MOUNTING US OFFICIALS SAID EARLY INDICATIONS ARE THAT LOSSES FROM FIELDS TOO WET FOR PLANTING ARE APPROACHING 1 BILLION AND THERE IS A POTENTIAL FOR MUCH LARGER LOSSES IN VULNERABLE IMMATURE CORN AND SOYBEAN CROPS AN AGRICULTURE DEPARTMENT OFFICIAL SAID FEDERAL EMERGENCY MANAGEMENT AGENCY CHIEF WITT CALLED THE DEVASTATION A TRAGIC SITUATION AND SAID DISASTER ASSISTANCE GRANTS LOWINTEREST LOANS AND OTHER AID WOULD BE OFFERED FLOODING HAS SHUT DOWN SIX AIRPORTS THREE IN MINNESOTA AND THREE IN IOWA AND HAS CLOSED THE UPPER MISSISSIPPI TO BARGE TRAFFIC UNTIL JULY 25 AT THE EARLIEST OFFICIALS SAID NIGERIA'S TWO MAIN PARTIES AGREED TO THE FORMATION OF AN INTERIM NATIONAL GOVERNMENT THAT WILL TAKE OVER ON AUG 27 WHEN MILITARY DICTATOR BABANGIDA IS SCHEDULED TO STEP DOWN THE ACCORD WAS ANNOUNCED AFTER PARTY LEADERS MET WITH BABANGIDA WHO DEPLOYED TROOPS IN LAGOS THIS WEEK TO HALT ANTIGOVERNMENT RIOTING PEROT'S BACKERS ARE DISMISSING THE MAJOR PARTIES AND DEFYING HISTORY TO FORM A POWERFUL RADICAL MIDDLE IN US POLITICS ACCORDING TO A SURVEY THE STUDY WHICH SHOWED A DEEP ALIENATION FROM GOVERNMENT COUPLED WITH ALLEGIANCE TO PEROT WAS COMMISSIONED BY THE DEMOCRATIC LEADERSHIP COUNCIL TO HELP IT ATTRACT PEROT VOTERS BOSNIA'S GOVERNMENT INDICATED IT WAS LIKELY TO REJECT A SERBCROAT PLAN FOR A THREEWAY PARTITION OF THE FORMER YUGOSLAV REPUBLIC THE MUSLIMLED GOVERNMENT HAS BEEN UNDER PRESSURE TO CONSIDER THE PLAN IN TOKYO INDUSTRIALIZED NATIONS SAID A BOSNIAN SETTLEMENT SHOULDN'T BE IMPOSED AT THE EXPENSE OF MUSLIMS IRAQ REOPENED TALKS WITH THE UN ON BAGHDAD'S REQUEST TO RESUME LIMITED OIL SALES UNDER STRICT SUPERVISION IRAQ IS SEEKING AN AGREEMENT TO ALLOW UNMONITORED SALES OF 16 BILLION IN OIL OVER SIX MONTHS WITH THE PROCEEDS USED TO BUY FOOD AND HELP FINANCE UN OPERATIONS IN IRAQ DEATH RATES HAVE FALLEN AMONG ALL SOCIAL CLASSES IN THE US SINCE THE 1960S BUT POOR LESSEDUCATED PEOPLE ARE LOSING GROUND TO THOSE WHO ARE BETTER OFF ACCORDING TO A STUDY IN THE NEW ENGLAND JOURNAL OF MEDICINE THE DISPARITY WIDENED EVEN AS PROGRAMS WERE SET UP TO GIVE THE POOR BETTER ACCESS TO HEALTH CARE DR HAROLD VARMUS IS EXPECTED TO BE NOMINATED BY CLINTON TO BECOME DIRECTOR OF THE NATIONAL INSTITUTES OF HEALTH VARMUS A PROFESSOR OF MICROBIOLOGY AND BIOCHEMISTRY AT THE UNIVERSITY OF CALIFORNIA AT SAN FRANCISCO SHARED A NOBEL PRIZE IN MEDICINE IN 1989 FOR DISCOVERING A GENETIC BASIS FOR CANCER THE COAST GUARD BOARDED AND DETAINED THREE SHIPS CARRYING MORE THAN 650 UNDOCUMENTED CHINESE PASSENGERS OFF THE COAST OF MEXICO US AUTHORITIES SAID OFFICIALS SAID THEY HADN'T DECIDED WHETHER TO TOW THE SHIPS TO THE US OR MEXICO OR SIMPLY TURN THEM AWAY THE FREIGHTERS ARE BELIEVED TO HAVE BEEN SMUGGLING ILLEGAL IMMIGRANTS A COURT IN MOSCOW AGAIN POSTPONED THE TRIAL OF 12 FORMER SOVIET LEADERS ACCUSED OF TRYING TO OVERTHROW THENPRESIDENT GORBACHEV IN AN AUGUST 1991 COUP ADDING TO SKEPTICISM THAT THE PROCEEDINGS EVER WILL TAKE PLACE THE TRIAL WAS EXPECTED TO BEGIN APRIL 14 BUT HAS BEEN DELAYED THREE TIMES IT IS NOW SCHEDULED FOR EARLY SEPTEMBER MORE THAN 18000 PEOPLE WERE EVACUATED FROM THEIR HOMES AS HURRICANE CALVIN MOVED UP MEXICO'S PACIFIC COAST FLOODING MANY RESIDENTIAL AREAS AT LEAST 28 PEOPLE WERE REPORTED TO HAVE DIED SINCE MONDAY IN HURRICANERELATED ACCIDENTS GUNMEN KILLED AS MANY AS SIX SOMALI EMPLOYEES OF THE UN IN AN AMBUSH IN MOGADISHU AND THE UN'S ENVOY TO SOMALIA VOWED THAT PEACEKEEPERS WOULD FIND THE ASSAILANTS TWO OF THE VICTIMS WERE SHOT DEAD IN A BUSY STREET MARKET FOUR OTHERS WOUNDED IN THE ATTACK WERE ABDUCTED AND PRESUMED DEAD THE ENVOY SAID EGYPTIAN PROSECUTORS ARE PREPARING INDICTMENTS AGAINST 770 MEN ACCUSED OF PLOTTING ASSASSINATIONS AND CAR BOMBINGS A MILITARY SOURCE SAID IN CAIRO THE ACTION IS THE MOST EXTENSIVE EGYPTIAN CRACKDOWN SO FAR AGAINST SUSPECTED MUSLIM FUNDAMENTALISTS WHO ARE SEEKING TO TRANSFORM EGYPT INTO AN ISLAMIC STATE 9307080001 930708 SOUTHERN CO UNIT'S PURCHASE ATLANTA SOUTHERN CO SAID A CONSORTIUM LED BY ITS SOUTHERN ELECTRIC INTERNATIONAL INC UNIT WILL PAY ABOUT 2185 MILLION FOR A STAKE IN A HYDROELECTRIC GENERATING FACILITY IN ARGENTINA THE UTILITY SAID THE CONSORTIUM WILL PURCHASE 59 OF THE COMMON SHARES OF HIDROELECTRICA ALICURA SA THE ARGENTINE GOVERNMENT WILL RETAIN A 39 STAKE IN THE COMPANY AND PLANT EMPLOYEES WILL OWN THE REST 9307070149 930707 BUSINESS BRIEF PENN CENTRAL CORP CONCERN SAYS PRETAX INCOME FOR 2ND QUARTER WILL JUMP PENN CENTRAL CORP SAID IT EXPECTS TO EARN ABOUT 45 MILLION IN PRETAX INCOME FROM CONTINUING OPERATIONS FOR THE SECOND QUARTER ENDED JUNE 30 COMPARED WITH 184 MILLION A YEAR EARLIER THE ESTIMATE INCLUDES A PRETAX GAIN OF 185 MILLION FROM THE COMPANY'S SALE OF ITS INTEREST IN BUCKEYE PARTNERS LP THE CINCINNATIBASED SPECIALTY PROPERTY AND CASUALTY INSURANCE CONCERN SAID SECONDQUARTER REVENUE FROM CONTINUING OPERATIONS WILL BE 385 MILLION COMPARED WITH 3424 MILLION IN THE YEAREARLIER PERIOD 9307070148 930707 MARKETING BRIEF FREEDOM NEWSPAPERS INC CALIFORNIA MEDIA COMPANY BUYS WORLD TRADE MAGAZINE FREEDOM NEWSPAPERS INC THE IRVINE CALIF PUBLISHER OF THE ORANGE COUNTY REGISTER NEWSPAPER BOUGHT WORLD TRADE MAGAZINE MARKING THE FAMILY OWNED MEDIA COMPANY'S FIRST VENTURE INTO MAGAZINE PUBLISHING TERMS OF THE PURCHASE WEREN'T DISCLOSED ANDREW LAWLER FOUNDER OF TAIPAN PRESS INC THE NEWPORT BEACH CALIF COMPANY THAT PUBLISHES WORLD TRADE WILL REMAIN CHAIRMAN AND EDITORINCHIEF OF THE MAGAZINE WHICH HAD ADVERTISING AND CIRCULATION REVENUE OF 25 MILLION IN 1991 WORLD TRADE PUBLISHED 11 TIMES A YEAR HAS NATIONAL PAID CIRCULATION OF MORE THAN 52000 PLUS FREE DISTRIBUTION TO PASSENGERS ON FLIGHTS OF AMR CORP'S AMERICAN AIRLINES AND NWA INC'S NORTHWEST AIRLINES ALSO INCLUDED IN THE PURCHASE IS USA EXPORTS AN ALLADVERTISING MAGAZINE TARGETED AT OVERSEAS CUSTOMERS OF US MANUFACTURING COMPANIES 9307070147 930707 BUSINESS BRIEF TERMIFLEX CORP COMPANY EXPECTING DEFICIT TRIMS ITS QUARTERLY DIVIDEND TERMIFLEX CORP SAID IT CUT ITS QUARTERLY DIVIDEND TO FOUR CENTS A SHARE FROM SEVEN CENTS IN ANTICIPATION OF A LOSS IN THE FOURTH QUARTER AND THE FISCAL YEAR THE MERRIMACK NH MAKER OF COMPUTER TERMINALS EXPECTS TO REPORT A LOSS OF ABOUT 11 CENTS A SHARE FOR THE FOURTH QUARTER AND ABOUT 25 CENTS A SHARE FOR THE FISCAL YEAR ENDED LAST WEDNESDAY IN THE 1992 FOURTH QUARTER TERMIFLEX HAD NET INCOME OF 156443 OR 11 CENTS A SHARE ON REVENUE OF 22 MILLION FOR 1992 NET INCOME WAS 744183 OR 54 CENTS A SHARE ON REVENUE OF 84 MILLION WILLIAM FLETCHER PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID EARNINGS WERE AFFECTED BY WEAK INTERNATIONAL AND DOMESTIC SALES HE ADDED THAT EXCHANGERATE FLUCTUATIONS AND A SOFT WORLDWIDE ECONOMY CAUSED TERMIFLEX'S CUSTOMERS ORIGINALEQUIPMENT MANUFACTURERS TO CUT ORDERS THE DIVIDEND IS PAYABLE JULY 30 TO SHARES OF RECORD JULY 19 9307070146 930707 BUSINESS BRIEF MARTIN MARIETTA CORP FIRM GETS FAA CONTRACT WITH VALUE OF 56 MILLION MARTIN MARIETTA CORP SAID IT RECEIVED A THREEYEAR CONTRACT FOR SYSTEMS ENGINEERING AND TECHNICAL SUPPORT VALUED AT 56 MILLION FROM THE FEDERAL AVIATION ADMINISTRATION THE CONTRACT IS FOR THE FAA'S CONTINUING MODERNIZATION OF THE NATION'S AIR TRAFFIC CONTROL SYSTEM MARTIN MARIETTA BASED IN BETHESDA MD SAID THE CONTRACT INCLUDES TWO OPTIONS FOR AN ADDITIONAL FOUR YEARS WITH A POTENTIAL SEVENYEAR VALUE OF 145 MILLION 9307070145 930707 FINANCING BUSINESS ALBERTA ENERGY CO ALBERTA ENERGY CO SAID IT AGREED TO SELL 100 MILLION CANADIAN DOLLARS US776 MILLION OF 10YEAR UNSECURED DEBENTURES TO A SYNDICATE OF CANADIAN INVESTMENT DEALERS THE CALGARY ALBERTA NATURAL RESOURCES COMPANY SAID THE DEBENTURES WHICH MATURE JULY 31 2003 WILL BEAR INTEREST OF 815 A YEAR IT SAID IT EXPECTS THE SALE TO CLOSE JULY 28 AFTER THE COMPANY HAS FILED A PROSPECTUS IN ALL CANADIAN PROVINCES AND SATISFIED OTHER REGULATORY REQUIREMENTS ALBERTA ENERGY SAID IT WILL USE PROCEEDS OF THE SALE TO REPAY FLOATINGRATE DEBT 9307070144 930707 FINANCING BUSINESS QUADRA LOGIC TECHNOLOGIES INC QUADRA LOGIC TECHNOLOGIES INC SAID IT EXPECTS TO RAISE 212 MILLION CANADIAN DOLLARS US165 MILLION FROM THE SALE OF TWO MILLION SHARES AT C1060 A SHARE THE PHARMACEUTICAL CONCERN SAID A GROUP OF UNDERWRITERS LED BY NESBITT THOMSON INC OF TORONTO AGREED TO BUY THE SHARES FOR RESALE IN CANADA THE ISSUE IS SUBJECT TO REGULATORY APPROVAL QUADRA LOGIC VANCOUVER BRITISH COLUMBIA SAID THE PROCEEDS WILL BE USED TO HELP FINANCE THE COST OF DRUG DEVELOPMENT 9307070143 930707 AMERICAN AIR'S TRAFFIC DROPS FORT WORTH TEXAS AMERICAN AIRLINES SAID ITS JUNE TRAFFIC FELL BY 3 FROM A YEAR EARLIER THE AIRLINE A UNIT OF AMR CORP FLEW 86 BILLION REVENUE PASSENGER MILES IN JUNE DOWN FROM 89 BILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR THE PERCENTAGE OF AVAILABLE SEATS FILLED ALSO DROPPED TO 633 FROM 693 THE TRAFFIC COMPARISONS FOR JUNE AND MOST LIKELY THE REST OF THE SUMMER REFLECT THE DEEP FARE CUTS THAT AMERICAN OFFERED LAST SUMMER 9307070142 930707 WOLOHAN LUMBER STORE SALES SAGINAW MICH WOLOHAN LUMBER CO SAID SALES FOR STORES OPEN ONE YEAR OR MORE DECREASED 16 IN JUNE TO 354 MILLION FROM 359 MILLION A YEAR EARLIER SALES FOR ALL STORES ROSE 13 IN JUNE TO 364 MILLION FROM 359 MILLION A YEAR EARLIER SAMESTORE SALES IN THE SIXMONTH PERIOD DROPPED 12 TO 163 MILLION FROM 165 MILLION A YEAR EARLIER SIXMONTH SALES FOR ALL STORES ROSE 11 TO 167 MILLION FROM 165 MILLION A YEAR EARLIER 9307070141 930707 GLOBAL BUSINESS UPSWING SEEMS LIKELY STUDY SAYS NEW YORK AN UPSWING IN THE GLOBAL BUSINESS CYCLE APPEARS LIKELY BASED ON AN ANALYSIS OF ECONOMIC INDICATORS FROM 11 LEADING INDUSTRIAL NATIONS THE CONFERENCE BOARD SAID THE GROUP'S REPORT CITED MODEST INFLATION RATES AND POSITIVE GROWTH RATES FOR 10 OF THE 11 COUNTRIES ANALYZED AS SIGNS OF ECONOMIC RECOVERY ECONOMIC INDEXES FOR THE REPORT ARE COMPILED MONTHLY FOR THE CONFERENCE BOARD AN INTERNATIONAL NONPROFIT BUSINESS ORGANIZATION BY THE CENTER FOR INTERNATIONAL BUSINESS CYCLE RESEARCH AT THE COLUMBIA UNIVERSITY BUSINESS SCHOOL THE REPORT NOTED A STEADY COMPOSITE INFLATION RATE OF 28 FOR THE 11 COUNTRIES WHILE THIS IS ENCOURAGING SAID EDGAR R FIEDLER VICE PRESIDENT AND ECONOMIC COUNSELOR AT THE CONFERENCE BOARD WE CAN NO LONGER SAY AS WE COULD A FEW MONTHS AGO THAT INFLATION IS SUBSIDING IN MOST OF THE NATIONS COVERED GERMANY WAS THE EXCEPTION TO THE POSITIVE TREND WITH DECLINING LEADING INDEXES AND HIGH INFLATION JAPAN REGISTERED THE STRONGEST ALTHOUGH STILL TENTATIVE UPTURN IN INDEXES THE REPORT SAID 9307070140 930707 WHO'S NEWS BOONTON ELECTRONICS CORP BOONTON ELECTRONICS CORP RANDOLPH NJ OTTO H YORK A DIRECTOR SINCE 1969 WAS ELECTED CHAIRMAN OF THIS MAKER OF TEST INSTRUMENTS FOR THE ELECTRONICS INDUSTRY THE DUTIES OF CHAIRMAN HAD BEEN HANDLED BY JOSEPH G GILLESPIE 53 YEARS OLD WHO RETIRED LAST MONTH AS PRESIDENT AND CHIEF EXECUTIVE OFFICER THOSE POSTS HAVEN'T BEEN FILLED YET MR YORK 82 IS PRESIDENT OF YORK ENTERPRISES MADISON NJ 9307070139 930707 INTERNATIONAL SEARS PLC SETS FOCUSING' STEPS LONDON BRITISH RETAILER SEARS PLC SAID IT IS SELLING ITS STAKE IN LUXURYGOODS RETAILER ASPREY PLC FOR 92 MILLION 1387 MILLION AFTER EXPENSES AND IN A SEPARATE TRANSACTION HAS EMBARKED ON CLOSING DOWN ITS DUTCH MAILORDER BUSINESS MEULEN POST SEARS SAID ITS ORDINARY ASPREY SHARES ARE BEING SOLD TO STOCK BROKERAGE SMITH NEW COURT FOR PLACEMENT WHILE ITS PARTICIPATING PREFERENCE SHARES WILL BE PLACED WITH INSTITUTIONAL INVESTORS BY STOCK BROKERAGE COLLINS STEWART & CO LIAM STRONG SEARS CHIEF EXECUTIVE SAID THE TWO MOVES REPRESENT FURTHER STEPS IN THE FOCUSING OF THE GROUP'S ACTIVITIES THE COMPANY IS UNRELATED TO THE US RETAILER WITH THE SAME NAME 9307070138 930707 WHO'S NEWS MATSUSHITA ELECTRIC INDUSTRIAL CO MATSUSHITA ELECTRIC INDUSTRIAL CO OSAKA JAPAN THIS MAKER OF ELECTRONIC EQUIPMENT ENTERTAINMENT SYSTEMS AND HOME APPLIANCES NAMED KUNIO NAKAMURA 53 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ITS MAIN NORTH AMERICAN SUBSIDIARY MATSUSHITA ELECTRIC CORP OF AMERICA THE UNIT IS BASED IN SECAUCUS NJ MR NAKAMURA SUCCEEDS AKIYA IMURA 58 WHO WAS NAMED TO THE NEW POSITION OF DIRECTOR OVERSEAS EXTERNAL RELATIONS AT THE PARENT COMPANY 9307070137 930707 INTERNATIONAL THREE AMERICANS TRY TO WORK MIRACLE AT CZECH REPUBLIC'S TATRA TRUCK PLANT BY NEIL KING JR SPECIAL TO THE WALL STREET JOURNAL KOPRIVNICE CZECH REPUBLIC FRUIT VENDOR JAROSLAV ERBEN DOESN'T KNOW MUCH ABOUT THE CORPORATE COWBOYS WHO RODE IN FROM THE WEST TO SAVE THE TRUCK FACTORY HERE FOR HIM THEY ARE SIMPLY THE THREE AMERICANS BUT MR ERBEN KNOWS WHAT THE PEOPLE IN THIS EAST MORAVIAN COMPANY TOWN EXPECT FROM THEM IF ANYONE CAN RESCUE THE CZECH REPUBLIC'S TATRA TRUCK PLANT IT WILL BE THE MEN WITH THE TANNED FACES AND THE BRIGHT SILK TIES LOOK WHAT THEY DID FOR DETROIT HE SAYS THE TATRA PLANT HAS LONG PROVIDED THE PAYCHECKS FOR AN ENTIRE REGION AT ONE TIME EMPLOYING NEARLY 16000 PEOPLE TATRA'S BRAWNY TRUCKS BUILT A TOWERING REPUTATION IN THE FORMER EAST BLOC AND THE THIRD WORLD BUT LIKE MANY OTHER BUSINESSES IN EASTERN EUROPE TATRA IS NOW AWASH IN DEBT ITS BEST CUSTOMERS ARE BROKE ITS WORK FORCE HAS BEEN CUT BY A THIRD AND THE REMAINING WORKERS HAVEN'T BUILT A TRUCK IN MONTHS UNABLE TO PAY LENDERS AND SUPPLIERS NEARLY 136 MILLION IN DEBTS THE SPRAWLING TATRA PLANT HALTED TRUCK PRODUCTION IN APRIL SO FAR THIS YEAR THE FACTORY HAS BUILT ONLY 800 TRUCKS 4000 FEWER THAN IT WOULD HAVE IN THE PERIOD DURING ITS HEYDAY BY AUGUST PINK SLIPS WILL HAVE GONE OUT TO 1650 MORE EMPLOYEES MORE THAN 16 OF THE REMAINING 10000 WORKERS THE WOULDBE MIRACLEMAKERS FROM THE WEST ARE LED BY GERALD GREENWALD ONCE THE HEIR APPARENT TO LEE IACOCCA AT CHRYSLER CORP AND MORE RECENTLY THE PRESIDENT OF OLYMPIA & YORK DEVELOPMENTS LTD ON MAY 12 HE WAS NAMED CHAIRMAN OF TATRA HE IS BACKED UP BY DAVID SHELBY AND JACK RUTHERFORD BOTH FORMERLY OF INTERNATIONAL HARVESTER NOW KNOWN AS NAVISTAR INTERNATIONAL CORP AND FORD MOTOR CO THEY CALL THEMSELVES GSR INC OURS IS A NOBLE CAUSE SAYS MR GREENWALD 57 YEARS OLD AS HE PEERS ACROSS THE SMOKESTACKS OF THE PLANT AND THE PINEY SLOPES OF THE BESKYDY MOUNTAINS ADDS MR RUTHERFORD 59 A TRUCK AND TRACTOR SPECIALIST FOR 30 YEARS OUR DESIRE IS TO HELP PEOPLE HERE AT LEAST PARTTIME THESE MEN HAVE CONSENTED TO TAKE ON THE JOB AS LONG AS THEY CAN HANDLE IT MOSTLY FROM THEIR OFFICES IN CHICAGO AND ASPEN COLO THE IDEA IS TO RETURN THE TRUCK PLANT TO PROFITABILITY BY 1995 IF THEY SUCCEED THEY STAND TO GAIN A 15 STAKE IN TATRA AS MANY RESIDENTS FROM CABBIES TO BARTENDERS GUSH ABOUT WHAT MR GREENWALD AND HIS COLLEAGUES WILL DO FOR TATRA THE DEAL RAISES MORE THAN A FEW EYEBROWS CAN A RESTRUCTURING THIS HUGE SOME DOUBTERS WONDER REALLY BE HANDLED AS A PARTTIME JOB CARRIED OUT BY REMOTE CONTROL YOU'VE GOT TO GET YOUR HANDS DIRTY SAYS THE CZECHBASED WESTERN MANAGER OF A FORTUNE 500 COMPANY'S EFFORTS HERE WHO ASKED NOT TO BE IDENTIFIED YOU'VE GOT TO BE THERE DAY IN DAY OUT TO SAY DO THIS' AND THEN HOPE IT WILL BE DONE THAT JUST DOESN'T WORK ADDS ALEXANDER ANGELL DIRECTOR OF TRADING FOR PRAGUEBASED WOOD & CO SECURITIES THE BIG QUESTION IS WHETHER GREENWALD AND HIS TEAM ARE ACTUALLY GOING TO MOVE TO KOPRIVNICE AND RUN THINGS FROM THERE THEY AREN'T GOING TO SOLVE TATRA'S PROBLEMS AND GET THE NECESSARY CHANGES MADE BY TELEPHONE AND FAX MACHINE THE AMERICANS DISAGREE AT HARVESTER RECALLS MR RUTHERFORD I CONTROLLED AND OPERATED ABOUT 60 PLANTS AROUND THE WORLD A LOT OF THOSE PLANTS I NEVER SET FOOT IN DID THAT MAKE A DIFFERENCE I DON'T THINK SO BESIDES HE ADDS WE HAVE FAX MACHINES NOW WE HAVE SATELLITE PHONES IT'S NOT LIKE WE'RE GOING TO BE OUT OF TOUCH FURTHERMORE MR GREENWALD MAINTAINS THIS ISN'T AN OVERLY COMPLICATED SITUATION ALL THREE OF US HAVE BEEN THROUGH EXPERIENCES LIKE THIS BEFORE MR GREENWALD WAS ONE OF THE HEROES OF THE CHRYSLER RESCUE MORE THAN A DECADE AGO ACTING AS CHIEF NEGOTIATOR WITH THE BANKS CHRYSLER'S REBOUND FROM THE BRINK OF BANKRUPTCY MADE MR IACOCCA A FOLK HERO AND ENHANCED MR GREENWALD'S REPUTATION AS A MIRACLE WORKER AFTER LEAVING CHRYSLER IN 1990 HE LED AN UNSUCCESSFUL 43 BILLION EMPLOYEE BUYOUT BID FOR UAL CORP'S UNITED AIRLINES THEN BECAME PRESIDENT OF OLYMPIA & YORK HE QUIT THAT JOB IN APRIL MR GREENWALD JUST IN FROM ASPEN AND THE REST OF HIS TEAM SAY THEY WILL PURSUE OTHER PROSPECTS BACK HOME THEY BOUGHT A VILLA IN KOPRIVNICE DUBBED THE BACHELORS' PAD FOR OCCASIONAL VISITS EVEN THEIR MAN ON THE GROUND PIERRE LAGASSE A BELGIAN WHO IS A FORMER FORD EXECUTIVE WILL HAVE TO SPEND JUST THREE WEEKS A MONTH IN KOPRIVNICE WHICH LIES 150 MILES EAST OF PRAGUE IF THE WORKING ARRANGEMENTS SEEM UNORTHODOX SO DO THE FINANCIAL ONES FEW OTHER VENTURES IN EASTERN EUROPE HAVE CEDED SO MUCH MANAGEMENT CONTROL TO A PARTY THAT'S PUTTING SO LITTLE CAPITAL AT RISK FOR ALL THE WESTERN KNOWHOW AND CLOUT THEY'RE BRINGING THE GREENWALD GROUP IS LEAVING THE CASH AT HOME ANY REQUIRED INVESTMENTS MR RUTHERFORD SAYS WILL HAVE TO COME OUT OF TATRA'S OWN POCKET ONCE A DEAL HAS BEEN WORKED OUT WITH CREDITORS TATRA WAS ONE OF THE FIRST PRIVATIZATIONS IN CZECHOSLOVAKIA LAST YEAR BEFORE THE COUNTRY SPLIT INTO SEPARATE CZECH AND SLOVAK NATIONS NOW 70 OF ITS EQUITY IS HELD BY NINE INVESTMENT FUNDS THE GOVERNMENT RETAINED ABOUT 8 AND THE REST IS HELD BY OTHER INVESTORS EVENTUALLY IF THE WESTERN MANAGERS SUCCEED THE GOVERNMENT AND ONE OF THE LARGEST FUNDS WILL TURN OVER A 15 STAKE TO MR GREENWALD AND HIS PARTNERS WHILE CZECH PREMIER VACLAV KLAUS CALLS THE ARRANGEMENT THE FIRST OF ITS KIND IN THE CZECH REPUBLIC HE SAYS MORE ARE LIKELY TO FOLLOW MR GREENWALD ARGUES THAT THE LOGIC OF THE ARRANGEMENT IS THAT HE AND HIS PARTNERS WILL PROFIT IF TATRA DOES OUR STAKE IS RIGHT THERE WITH EVERYONE ELSE'S HE SAYS AT THE SAME TIME HOWEVER THE THREE AMERICANS WILL COLLECT SALARIES HOW MUCH THAT'S A SECRET OUR FEES FRANKLY ARE SUBSTANTIALLY LESS THAN WHAT WE WOULD HAVE RECEIVED FOR DOING SIMILAR WORK IN THE WEST MR GREENWALD SAYS HE CONTENDS THERE IS ONLY ONE BASIC DIFFERENCE BETWEEN CHRYSLER'S SITUATION AND TATRA'S WHEN I WALKED INTO CHRYSLER HE RECALLS IT HAD SEVERE CASH PROBLEMS ITS MANAGEMENT HAD LOST CONFIDENCE AND WORST OF ALL IT HAD A LOUSY LINE OF PRODUCTS TATRA AT LEAST HAS A SOUND PRODUCT 9307070136 930707 TECHNOLOGY ADVANCED MICRO'S EARNINGS ROSE 55 TO 644 MILLION IN THE SECOND QUARTER BY CARRIE DOLAN STAFF REPORTER OF THE WALL STREET JOURNAL SUNNYVALE CALIF BOOSTED BY SALES OF FLASH MEMORY PRODUCTS ADVANCED MICRO DEVICES INC SAW ITS NET INCOME RISE 55 IN THE SECOND QUARTER FOR THE PERIOD ENDED JUNE 27 THE COMPUTERCHIP MAKER'S NET ROSE TO 644 MILLION OR 65 CENTS A SHARE FROM 414 MILLION OR 43 CENTS A SHARE A YEAR EARLIER THE EARNINGS WERE IN LINE WITH ANALYSTS' EXPECTATIONS REVENUE ROSE 17 TO 4091 MILLION FROM 3502 MILLION AMD SAID INTERNATIONAL MARKETS WHICH ACCOUNTED FOR MORE THAN 55 OF REVENUE WERE STRONG IN THE QUARTER EXCEPT FOR JAPAN WHERE THE MARKET CONTINUES TO BE WEAK IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE AMD'S STOCK WAS QUOTED AT 2325 DOWN 625 CENTS AMD SAID SALES OF FLASH MEMORY CHIPS WHICH CAN RETAIN STORED DATA EVEN AFTER THEIR POWER SUPPLY IS CUT EXCEEDED PREVIOUSQUARTER SALES NEARLY 60 THE COMPANY SAID WORLDWIDE DEMAND FOR FLASH MEMORY CONTINUES TO OUTSTRIP PRODUCTION CAPACITY AND IT EXPECTS HEALTHY SALES GROWTH OF THE PRODUCTS DURING THE REST OF THE YEAR SALES OF ITS PROGRAMMABLELOGIC PRODUCTS REACHED THEIR HIGHEST SINCE 1990 DURING THE SECOND QUARTER AMD SAID HOWEVER SALES AND PRICES OF AMD'S CLONE OF INTEL CORP'S 386 MICROPROCESSORS FELL AS CUSTOMERS SHIFTED TO MORE POWERFUL PERSONAL COMPUTERS BASED ON THE 486 MICROPROCESSOR AMD MAKES THE MICROPROCESSORS WHICH ACT AS THE BRAINS FOR MILLIONS OF PERSONAL COMPUTERS UNDER AN AGREEMENT WITH ITS MUCHBIGGER RIVAL SANTA CLARA CALIFBASED INTEL THE TWO COMPANIES ARE EMBROILED IN A LONGRUNNING COPYRIGHT FEUD OVER MANUFACTURING THOSE CHIPS THE X86LINE OF MICROPROCESSORS ACCOUNTED FOR LESS THAN A THIRD OF AMD'S SALES IN THE QUARTER THE COMPANY SAID SALES OF PRODUCTS OUTSIDE THE X86LINE WERE NEARLY 14 HIGHER IN THE SECOND QUARTER THAN IN THE PRECEDING PERIOD HOWEVER AMD EXPECTS SHARPLY INCREASED SALES OF ITS CLONE OF THE 486 MICROPROCESSOR IN THE CURRENT QUARTER THE COMPANY BEGAN SHIPPING ITS VERSION OF THE 486 MICROPROCESSOR IN APRIL MOVING ABOUT 20000 UNITS IN THE SECOND QUARTER AMD ESTIMATED IT WILL SHIP ABOUT 100000 UNITS IN THE CURRENT QUARTER AND 400000 UNITS IN THE FOURTH QUARTER A SPOKESMAN SAID THERE IS A REASONABLE CHANCE OF THE COMPANY POSTING SLIGHTLY HIGHER TOTAL REVENUES AND EARNINGS THAN LAST YEAR IN THE TRADITIONALLY SLOW THIRD QUARTER IN THE 1992 THIRD QUARTER AMD POSTED NET OF 491 MILLION OR 51 CENTS A SHARE ON REVENUE OF 3567 MILLION IN THE FIRST SIX MONTHS NET FELL TO 1258 MILLION OR 128 A SHARE FROM 1263 MILLION OR 133 A SHARE POSTED A YEAR EARLIER REVENUES ROSE 8 TO 8165 MILLION FROM 7576 MILLION 9307070135 930707 WHO'S NEWS CINCINNATI BELL INC CINCINNATI BELL INC CINCINNATI WILLIAM D BASKETT III WAS NAMED GENERAL COUNSEL AND CHIEF LEGAL OFFICER A NEW POSITION AT THIS TELECOMMUNICATIONS COMPANY MR BASKETT 53 YEARS OLD WILL CONTINUE AS A PARTNER WITH THE CINCINNATI LAW FIRM OF FROST & JACOBS WHERE HE HAD BEEN SERVING AS CHIEF OUTSIDE COUNSEL TO THE COMPANY 9307070134 930707 CREDIT MARKETS PRICES OF TREASURY ISSUES END SLIGHTLY LOWER IN REACTION TO SHARP RISE IN COMMODITIES PRICES BY THOMAS T VOGEL JR AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK TREASURY PRICES DROPPED SLIGHTLY IN REACTION TO A SHARP RISE IN COMMODITIES PRICES THE BENCHMARK 30YEAR TREASURY BOND DROPPED NEARLY 1/4 POINT TO 105 22/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE ROSE TO 668 FROM 666 ON FRIDAY US BOND MARKETS WERE CLOSED MONDAY IN OBSERVANCE OF THE INDEPENDENCE DAY HOLIDAY COMMODITIES PRICES AND CAUTION DURING A MEETING OF THE POLICYMAKING ARM OF THE FEDERAL RESERVE HELPED TO PUSH PRICES DOWN DURING A DAY OF LIGHT VOLUME SAID PETER MCTEAGUE A MARKET ANALYST AT TECHNICAL DATA A UNIT OF THOMSON FINANCIAL SERVICES PROPELLED BY THE RAIN AND FLOODING IN THE MIDWEST PRICES OF GRAINS AND OTHER AGRICULTURAL COMMODITIES SKYROCKETED BY THE END OF TRADING THE WIDELY WATCHED COMMODITY RESEARCH BUREAU INDEX POSTED ITS BIGGEST GAIN IN ABOUT 13 YEARS BY RISING 529 POINTS TO 21730 SUCH A STEEP RISE WOULD OFTEN BE INTERPRETED AS A HARBINGER OF HIGHER INFLATION BY PLAYERS IN THE BOND MARKET AND SEND THE MARKET INTO A SHARP PLUNGE BUT NOT YESTERDAY ECONOMISTS SAID THE RISE IN COMMODITIES PRICES AND AN ACCOMPANYING GAIN IN PRECIOUS METALS AREN'T POINTING TO A RENEWED SURGE IN INFLATION I DON'T THINK PEOPLE SHOULD BE TOO CONCERNED ABOUT THE CRB SAID MARILYN SCHAJA A MONEY MARKET ECONOMIST AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP WHILE THERE COULD BE A BLIP HIGHER IN FOOD PRICES DOWN THE ROAD IT IS NOT GOING TO CAUSE A MAJOR INFLATION PROBLEM SHE SAID THE MARKET IS STILL IN GREAT SHAPE SAID MR MCTEAGUE OF TECHNICAL DATA THE ECONOMIC FUNDAMENTALS ARE EXCELLENT RIGHT NOW HE SAID WITH LOW INFLATION A SLOWING ECONOMY INVESTORS HOLDING LOTS OF CASH NOT YET INVESTED IN THE MARKET AND ONLY A SMALL AMOUNT OF TREASURY NOTES OR BONDS SCHEDULED TO BE AUCTIONED IN THE NEXT FEW WEEKS MANY TRADERS HAD EXPECTED TREASURYS TO SAIL HIGHER YESTERDAY IN THE WAKE OF THE EXTREMELY WEAK JUNE EMPLOYMENT REPORT DISCLOSED FRIDAY THAT REPORT SHOWED ONLY 13000 NONFARM JOBS WERE ADDED DURING THE MONTH DOWN SHARPLY FROM THE GAINS OF MORE THAN 200000 POSTED IN THREE OF THE PRIOR FOUR MONTHS ANTICIPATION OF FURTHER BUYING TOOK PRICES HIGHER IN OVERSEAS TRADING THE MARKET HIT ITS HIGHS BEFORE IT GOT TO THE NEW YORK OPENER NOTED WARD MCCARTHY A MANAGING DIRECTOR AT STONE & MCCARTHY RESEARCH ASSOCIATES IN PRINCETON NJ HOWEVER THE GAINS PROVED TO BE SHORTLIVED AS TRADERS WERE CONFRONTED WITH A LACK OF FOLLOWTHROUGH INVESTOR BUYING AND SHARPLY HIGHER COMMODITIES PRICES BEFORE THE MARKET EVER HAD A CHANCE TO GET ON TRACK GOLD PRICES WERE UP FIVE OR SIX DOLLARS AND THE CRB WAS OFF TO THE RACES MR MCCARTHY SAID GOLD FINISHED THE DAY UP 640 AN OUNCE AT 39310 THE RISE WAS MOSTLY BECAUSE OF FUND BUYING THAT WAS MORE THAN ENOUGH TO UNNERVE TRADERS WHO HAD BEEN BETTING ON HIGHER PRICES AND CONTINUED INVESTOR DEMAND FOR TREASURYS THERE WAS SOME EXPECTATION OF FOLLOWTHROUGH FROM FRIDAY AND WHEN IT DIDN'T MATERIALIZE THERE WERE A LOT OF FOLKS HOLDING BONDS THAT WERE EXPENSIVE TO CARRY SAID MR MCCARTHY SHORTTERM SECURITIES TOOK THE BRUNT OF THE SELLING PRESSURES WHILE LONGER MATURITIES POSTED RELATIVELY SMALLER DECLINES THE FIVEYEAR NOTE FOR EXAMPLE DROPPED MORE THAN 1/4 POINT TO 100 10/32 TO YIELD 504 UP FROM 497 FRIDAY THAT MARKED A REVERSAL OF THE TREND FROM RECENT SESSIONS AND RESULTED IN A NARROWING OF THE YIELD GAP BETWEEN LONGTERM AND SHORTTERM TREASURYS THE GAP BETWEEN THE TWOYEAR NOTE AND THE 30YEAR BOND NARROWED TO ABOUT 268 PERCENTAGE POINTS LATE YESTERDAY FROM 275 PERCENTAGE POINTS FRIDAY SOME OF THE PRESSURE ON SHORTTERM SECURITIES CAME FROM RUMORS WHICH LATER PROVED TO BE UNTRUE THAT A WASHINGTON ADVISORY SERVICE HAD SAID THE FEDERAL RESERVE WOULD VOTE TO RAISE INTEREST RATES AT THIS WEEK'S MEETING OF THE POLICYMAKING FEDERAL OPEN MARKET COMMITTEE MANY ANALYSTS BELIEVE THAT THE FED WILL OPT TO LEAVE MONETARY POLICY UNCHANGED AT THE FOMC MEETING AND WHILE RECENT ECONOMIC REPORTS HAVE COME IN WEAKER THAN EXPECTED THE FED IS NOT SEEN REVERSING ITS BIAS FOR TIGHTENING WHICH IT APPARENTLY ADOPTED AT A MIDMAY MEETING IT HAS BEEN WIDELY REPORTED THAT THE FED ADOPTED THE BIAS TOWARD RAISING RATES AT THE MAY MEETING IN RESPONSE TO RISING FEARS ABOUT INFLATION THE OFFICIAL WORD ON WHAT THE FED DID BACK ON MAY 18 WILL NOT BE AVAILABLE UNTIL FRIDAY WHEN THE MINUTES OF THAT MEETING ARE MADE PUBLIC MEANWHILE YESTERDAY THE TREASURY SOLD 2447 BILLION OF THREEMONTH AND SIXMONTH BILLS AT ITS REGULAR WEEKLY AUCTION THE THREEMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 301 FOR A COUPONEQUIVALENT YIELD OF 308 THE SIXMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 310 FOR A COUPONEQUIVALENT YIELD OF 319 HERE ARE THE RESULTS OF THE AUCTION AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR 1993 AND THE 26WEEK BILLS MATURE JAN 6 1994 INVESTMENTGRADE COMPANIES PRICED ABOUT 650 MILLION OF NEW BONDS INCLUDING TWO ISSUES WITH VERY LONG MATURITIES BUT NO NEW JUNK BONDS WERE ISSUED MEANWHILE THE CANADIAN PROVINCE OF ONTARIO SAID IT PLANNED TO LAUNCH A ONE BILLION CANADIANDOLLAR US7762 MILLION GLOBAL BOND ISSUE IN THE NEAR FUTURE SUBJECT TO MARKET CONDITIONS ONTARIO'S ISSUE WILL BE THE PROVINCE'S SECOND CANADIANDOLLAR GLOBAL BOND OFFERING IN JUNE IT SUCCEEDED IN DOUBLING AN ORIGINALLY PLANNED US1 BILLION GLOBAL ISSUE TO US2 BILLION BECAUSE OF STRONG DEMAND IN EUROPE AND ASIA THE NEW GLOBAL ISSUE WILL BE DONE IN CANADIAN RATHER THAN US DOLLARS IN AN EFFORT TO DIVERSIFY THE PROVINCE'S BORROWING MIX AND ATTRACT MORE US INVESTORS SAID DOUG BURTNICK AN ANALYST WITH TECHNICAL DATA ACTIVITY IN THE INVESTMENTGRADE SECONDARY MARKET WAS QUIET WITH PRICES TRAILING THOSE OF TREASURY SECURITIES TO END AS MUCH AS 1/8 POINT LOWER TRADING OF SEASONED HIGHYIELD ISSUES ALSO WAS QUIET WITH THE EXCEPTION OF THE BONDS OUTSTANDING OF NORTHWEST AIRLINES A UNIT OF CLOSELY HELD WINGS HOLDINGS INC THE COMPANY SAID IT REACHED AN AGREEMENT WITH ITS PILOTS UNION ON CONCESSIONS TO HELP THE CARRIER AVOID A BANKRUPTCYLAW FILING THIS NEWS PUSHED UP THE PRICE ON THE COMPANY'S ISSUE OUTSTANDING OF 8625 COUPON NOTES MATURING IN 1996 ABOUT 10 POINTS TO OVER 46 TRADERS SAID MCDONALD'S CORP PRICED 200 MILLION OF 40YEAR DEBENTURES AT 99578 TO YIELD 7408 OR 075 PERCENTAGE POINT ABOVE THE 30YEAR TREASURY NONCALLABLE FOR 10 YEARS THE ISSUE IS RATED DOUBLEA2 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEA BY STANDARD & POOR'S CORP SOUTHWESTERN BELL TELEPHONE CO A UNIT OF SOUTHWESTERN BELL CORP ALSO PRICED 150 MILLION OF 32YEAR DEBENTURES AT 98471 TO YIELD 7375 OR 072 PERCENTAGE POINT ABOVE THE 30YEAR TREASURY THE ISSUE IS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P PRICES OF MUNICIPAL BONDS ENDED 1/4 POINT LOWER TO 3/8 HIGHER AMONG ACTIVELY TRADED TAXEXEMPT BONDS THE MASSACHUSETTS BAY TRANSPORTATION AUTHORITY'S 550 REFUNDING BONDS OF 2022 FINISHED 1/4 POINT LOWER AT 98 TO YIELD 563 INVESTORS IN SEARCH OF SECURITIES WILL HAVE SOME NEW YORK AND MISSISSIPPI PAPER TO CHOOSE FROM TODAY A GOLDMAN SACHS & CO GROUP IS EXPECTED TO PRICE NEW YORK LOCAL GOVERNMENT ASSISTANCE CORP'S 450 MILLION OF SERIES 1993C REFUNDING BONDS AND A SMITH BARNEY HARRIS UPHAM & CO GROUP IS EXPECTED TO PRICE MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORP'S 175 MILLION OF STUDENT LOAN REVENUE BONDS PRICES OF MORTGAGE SECURITIES ENDED LOWER ON LINGERING CONCERNS THAT CURRENT LOW RATES MEAN MORE REFINANCINGS AND PREPAYMENTS PREPAYMENTS HURT PREMIUMPRICED HIGHCOUPON MORTGAGE SECURITIES BECAUSE INVESTORS TYPICALLY PAY MUCH MORE THAN THE PAR PRICE THAT IS RETURNED WHEN THE SECURITIES ARE PREPAID IN SECONDARY TRADING OF 65 MORTGAGE SECURITIES FOR JULY DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION SECURITIES DROPPED 14/32 TO 99 24/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD SECURITIES FELL 10/32 TO 99 18/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES LOST 10/32 TO 99 12/32 MANY PLAYERS WHO HAD BEEN PREDICTING A PEAK FOR PREPAYMENT SPEEDS DURING JUNE OR JULY ARE NOW RECONSIDERING THOSE FORECASTS IF MORTGAGE RATES HOLD OR SLIDE BELOW CURRENT LEVELS WHICH ARE THE LOWEST IN ABOUT 22 YEARS INVESTORS SHOULD START PREPARING FOR THE FOURTH PREPAYMENT SPREE IN TWO YEARS ANALYSTS SAY DATA REFLECTING JUNE PREPAYMENTS ON FANNIE MAE AND GINNIE MAE ARE DUE OUT TOMORROW IN THE MARKET FOR REALESTATE MORTGAGE INVESTMENT CONDUITS KIDDER PEABODY & CO BOOSTED THE SIZE OF FREDDIE MAC'S SERIES GOLD 1552 TO 261 BILLION FROM 215 BILLION MAKING IT THE LARGEST REMIC EVER THE OFFERING WHICH HAS BEEN INCREASED SEVERAL TIMES FROM ITS ORIGINAL 325 MILLION IS BACKED BY FREDDIE MAC GOLD 7 MORTGAGE SECURITIES 9307070133 930707 WHO'S NEWS PS NEW MEXICO SELECTS MONTOYA AS CHIEF EXECUTIVE BY ANN DE ROUFFIGNAC STAFF REPORTER OF THE WALL STREET JOURNAL PUBLIC SERVICE CO OF NEW MEXICO NAMED BENJAMIN F MONTOYA PRESIDENT AND CHIEF EXECUTIVE OFFICER THE GAS AND ELECTRIC UTILITY HAD CONDUCTED A NATIONAL SEARCH FOR A NEW CHIEF EXECUTIVE TO LEAD IT THROUGH A TRANSITION TOWARD A MORE COMPETITIVE ENVIRONMENT MR MONTOYA CURRENTLY SENIOR VICE PRESIDENT OF PACIFIC GAS & ELECTRIC CO MANAGED THAT COMPANY'S INTRASTATE PIPELINE TRANSMISSION SYSTEM AND TWO AFFILIATED GAS COMPANIES HE SUCCEEDS JOHN ACKERMAN AS PRESIDENT AND CHIEF EXECUTIVE OF THE ALBUQUERQUE NMBASED UTILITY MR ACKERMAN REMAINS CHAIRMAN THE NEW CHIEF IS A NET POSITIVE FOR THE COMPANY SAID ALFRED MAZZORANA BOND ANALYST WITH FURMAN SELZ INC MR MONTOYA 58 YEARS OLD BRINGS WITH HIM EXPERIENCE IN THE MORE COMPETITIVE ENVIRONMENT OF NATURAL GAS THE FEDERAL ELECTRIC REGULATORY COMMISSION'S RECENT ORDER 636 MANDATED THE UNBUNDLING OF NATURAL GAS SERVICES OF TRANSMISSION STORAGE AND DISTRIBUTION SO THE CUSTOMER COULD CHOOSE COMPANIES FOR DIFFERENT SERVICES AS ELECTRIC UTILITIES BEGIN TO GRANT TRANSMISSION ACCESS THE INDUSTRY IS PROBABLY GOING TO TAKE ITS CUE FROM THE GAS INDUSTRY SAID MR MAZZORANA HOWEVER PROBLEMS REMAIN TOUGH TO RESOLVE AT PUBLIC SERVICE WHOEVER IS IN CHARGE THE COMPANY IS BURDENED WITH EXCESS GENERATING ASSETS THAT MUST BE SOLD OR REVALUED AND DESPITE THE EXCESS CAPACITY THE COMPANY IS SADDLED WITH EXPENSIVE LEASES ON SOME OF ITS SHARE OF THE PALO VERDE NUCLEAR GENERATING STATION WHICH KEEPS ELECTRIC GENERATING COSTS HIGH BURDENED WITH HIGH RATES MOST CUSTOMERS OF PUBLIC SERVICE WOULD WELCOME COMPETITION FOR ELECTRICAL SERVICE THE UTILITY IN A LONGSTANDING DISAGREEMENT WITH THE CITY OF ALBUQUERQUE STILL HAS NO FRANCHISE AFTER IT EXPIRED IN JANUARY 1992 THERE WAS EVEN A BILL INTRODUCED TO THE STATE LEGISLATURE IN JANUARY TO REQUIRE PUBLIC SERVICE TO GRANT COMPETING UTILITIES TRANSMISSION ACCESS IF RATES COULD BE LOWERED BUT THE BILL WAS SENT TO COMMITTEE FOR STUDY ESSENTIALLY PUTTING MANDATORY ACCESS TO PUBLIC SERVICE'S RETAIL CUSTOMERS ON HOLD UNTIL THE 1995 NEW MEXICO STATE LEGISLATIVE SESSION THE MANAGEMENT CHANGE MEANS THE UTILITY WILL PUT OFF A FILING TO THE NEW MEXICO PUBLIC SERVICE COMMISSION PREVIOUSLY PROMISED FOR THIS SUMMER WHILE MR MONTOYA GETS COMPLETELY UP TO SPEED THE COMPANY IS SAYING IT WILL FILE BEFORE THE END OF THE YEAR THE FILING CONCERNS THE REVALUING AND SELLING OF CERTAIN GENERATING ASSETS AS WELL AS SOME ORGANIZATIONAL AND OPERATIONAL CHANGES BETWEEN THE GAS AND THE ELECTRIC DIVISIONS OF THE UTILITY A SPOKESWOMAN SAID HOWEVER MR MONTOYA COGNIZANT OF THE IMPORTANCE OF LOWERING RATES SAID HIS FIRST PRIORITY IS RESOLVING THE ISSUE OF EXCESSGENERATION ASSETS IN ORDER TO GET RATES DOWN SEPARATELY PACIFIC GAS & ELECTRIC SAID JACK F JENKINSSTARK 42YEAROLD VICE PRESIDENT AND TREASURER WAS PROMOTED TO SENIOR VICE PRESIDENT AND GENERAL MANAGER GAS SUPPLY BUSINESS UNIT SUCCEEDING MR MONTOYA 9307070132 930707 MEDIA TV STATIONS SEE LITERARY FUTURE SHOWS ON BOOKS BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TURNING OVER AN OLD LEAF TELEVISION STATIONS ARE PLANNING A SPATE OF NEW SHOWS ABOUT BOOKS NO MATTER THAT TELEVISION PROGRAMS ABOUT BOOKS HAVE FAILED REPEATEDLY IN THE PAST HALF A DOZEN NEW TV SHOWS ARE ABOUT TO AIR OR ARE IN THE WORKS FROM A BOOKSHOPPING SHOW ON QVC TO THE LEARNING CHANNEL'S HIGHBROW GREAT BOOKS A NEW PUBLIC BROADCASTING SERVICE PROGRAM FIRST EDITION IS LIKE ENTERTAINMENT TONIGHT WITHOUT ROCK STARS IN ONE SEGMENT OF THE PILOT SHOW BESTSELLING NOVELIST TERRY MCMILLAN SHOWS HOST SHARI BELAFONTE HER BIG NEW HOUSE AND REVEALS THAT PAPERBACK RIGHTS TO WAITING TO EXHALE WENT FOR 25 MILLION PUBLISHERS AND BOOKSELLERS ARE EAGERLY SUPPORTING THE NEW SHOWS ESPECIALLY THE PBS PROGRAM AND ONE OF THEIR PRINCIPAL MOTIVATIONS IS FEAR THEY TOO ARE LOOKING AHEAD TO AN ERA OF 500 CHANNELS AND THE ENTERTAINMENT SUPERHIGHWAY AND WHEN THAT ERA COMES THEY DON'T WANT BOOKS TO GET BYPASSED CHARLES CUMELLO CHAIRMAN OF KMART CORP'S WALDENBOOKS DONATED MONEY TO HELP FINANCE THE PBS PILOT OUT OF FRUSTRATION THAT BOOKS AREN'T PROMOTED WIDELY ENOUGH AS A CATEGORY I DON'T KNOW IF THIS WILL SUCCEED IN HELPING TO SELL MORE BOOKS BUT I DO KNOW WE'VE GOT TO TRY SOMETHING IN THIS INDUSTRY SAYS MR CUMELLO EVEN THE DAIRY BUSINESS PROMOTES ITSELF BETTER THAN WE DO INDEED THE PBS PROJECT IS RARE FOR THE WIDESPREAD SUPPORT IT HAS RECEIVED FROM EVERY CORNER OF THE BOOK BUSINESS BOTH WALDENBOOKS AND ITS ARCHRIVAL BARNES & NOBLE INC DONATED MONEY FOR THE PILOT SO DID MOST OF THE MAJOR PUBLISHERS AND THE AMERICAN BOOKSELLERS ASSOCIATION MOST OF WHOSE MEMBERS OWN SINGLE STORES EVEN WITH ALL THAT BACKING FIRST EDITION THE BRAINCHILD OF SAN FRANCISCO BANKER STUART HELLER ISN'T A DONE DEAL THE HALFHOUR PILOT HAS RUN JUST ONCE SO FAR IN SAN FRANCISCO AND AIRS IN NEW YORK TONIGHT WITH ADDITIONAL SHOWINGS ACROSS THE COUNTRY PLANNED FOR THIS SUMMER BEFORE PBS DECIDES WHETHER TO PICK UP THE PROGRAM NATIONALLY PERHAPS FOR EARLY 1994 THE PRODUCERS HAVE TO LINE UP ABOUT 5 MILLION FROM BUSINESSES AND FOUNDATIONS TO COVER THE FIRST 26 PROGRAMS CHARLIE ROSE AND SHARI BELAFONTE ARE COHOSTS FOR THE PILOT BUT WON'T NECESSARILY DO THE REGULAR SHOW THE PRODUCERS SAY ALL THE NEW SHOWS ARE DETERMINED TO AVOID WHAT HASN'T WORKED BEFORE THE TROUBLE WITH MOST BOOK SHOWS FOR TELEVISION IS THAT THEY'RE RADIO SHOWS A COUPLE OF TALKING HEADS SAYS JOHN BARCHILON COPRODUCER OF A PROPOSED SYNDICATED SHOW CALLED BEST SELLERS IN THE PAST MOST NATIONAL AND LOCAL BOOK SHOWS HAVE BEEN THE POLAR OPPOSITE OF HYPERKINETIC MTV NO ACTION OTHER THAN A TWEEDY HOST CHATTING WITH THE AUTHOR ONE TYPICAL ENTRY BOOKMARK HOSTED BY HARPER'S EDITOR LEWIS LAPHAM RAN SEVERAL YEARS ON PBS BUT DIED IN 1991 UNABLE TO FIND A SPONSOR THESE SHOWS KEEP FAILING BECAUSE THEY'RE BORING SAYS LAURENCE KIRSHBAUM PRESIDENT OF TIME WARNER INC'S WARNER BOOKS NAN TALESE AN EDITOR AT BERTELSMANN AG'S DOUBLEDAY SAYS SUCH SHOWS MISTAKENLY APED THE FRENCH BOOK SHOW APOSTROPHES WHICH WENT OFF THE AIR IN 1990 AFTER A 15 YEAR RUN WHAT THEY WERE FORGETTING COMPLETELY SAYS MS TALESE IS THAT AMERICANS AREN'T FRENCH AND WE DON'T GET EXCITED ABOUT IDEAS MR BARCHILON'S PROPOSED BEST SELLERS SHOW WOULD AVOID FEATURING AUTHORS AT ALL HIS COHOSTS WOULD DISCUSS FOUR WOULDBE BLOCKBUSTER BOOKS THAT HAD JUST HIT BOOKSTORES SORT OF LIKE SISKEL & EBERT REVIEWS MOVIES EXCEPT THE HOSTS WOULDN'T BE ABLE TO PAN THE BOOKS SINCE PUBLISHERS WOULD PAY TO HAVE TITLES INCLUDED FOR VISUALS THE PRODUCER SAYS HE WILL EITHER FILM VIDEO SUMMARIES OF THE BOOKS OR PATCH TOGETHER FOOTAGE FROM MOVIES SUGGESTIVE OF THE PLOT AND TONE HE PLANS TO FILM THE SHOW'S PILOT THIS MONTH ADVANCE OPINIONS OF BEST SELLERS VARY WIDELY WITH SOME PUBLISHERS VIEWING IT AS LITTLE MORE THAN AN INFOMERCIAL MR BARCHILON WHO HOPES TO SELL THE SHOW IN SYNDICATION SAYS IT WON'T BE AN INFOMERCIAL BECAUSE PRODUCERS WOULD PICK THE FEATURED BOOKS CAROLYN REIDY HEAD OF CONSUMER BOOKS AT PARAMOUNT COMMUNICTIONS INC'S SIMON & SCHUSTER SAYS SHE LIKES THE SHOW'S AIM TO DESCRIBE A BOOK AND WHO MIGHT LIKE IT AUTHORS OF BESTSELLERS WILL BE MORE THAN WELCOME ON QVC'S NEW BOOK SHOW WHICH WAS TESTED TWO WEEKS AGO IN A ONEHOUR SEGMENT HOSTED BY GOSSIP COLUMNIST LIZ SMITH THE SHOPPING CHANNEL WILL TRY AGAIN THIS MONTH AND THE FIRST ATTEMPT WHICH FOCUSED ON NONFICTION BOOKS FOR WOMEN WENT VERY WELL A SPOKESMAN SAYS MS SMITH INTERVIEWED SEVERAL AUTHORS INCLUDING HELEN GURLEYOWN AND ALSO OFFERED SUCH BOOKS FOR SALE AS WOMEN WHO RUN WITH THE WOLVES FOR ALL THE TALK OF POPULARIZING BOOK SHOWS THE HIGHESTBROW OF THE BUNCH IS THE ONLY ONE WITH A DEFINITE COMMITMENT TO AIR GREAT BOOKS WHICH WILL BOW SEPT 8 ON CABLE'S LEARNING CHANNEL IS NARRATED BY ACTOR DONALD SUTHERLAND IT MIXES FOOTAGE OF PROFESSORS DISUSSING CLASSIC WORKS WITH SOME LIGHTHEARTED TOUCHES FRANKENSTEIN THE MAKING OF THE MONSTER INCLUDES NOVELIST ANNE RICE DISCUSSING MONSTERS THE RECREATION OF AN 1826 PLAY BASED ON THE BOOK AND A COLLECTION OF FRANKENSTEIN MOVIE MEMORABILIA JOHN HENDRICKS CHAIRMAN OF DISCOVERY COMMUNICATIONS INC PARENT OF THE LEARNING CHANNEL SAYS THE CHANNEL CAN AFFORD TO PAY 400000 OR MORE PER EPISODE BECAUSE ADVERTISERS WANT WELLEDUCATED AFFLUENT VIEWERS AND THE SHOWS CAN BE RESOLD OVERSEAS AND IN VIDEOCASSETTE FORM AS EACH EPISODE RUNS PUBLISHER RANDOM HOUSE WILL REISSUE THAT CLASSIC IN PAPERBACK WITH A PREFACE BY WALTER CRONKITE WHOSE PRODUCTION COMPANY CRONKITE WARD & CO IS COPRODUCING THE SERIES AS MANY AS 50 EPISODES ARE PLANNED BY DECADE'S END MEANWHILE AT LEAST ONE CHANNEL CSPAN WON'T ABANDON THE TALKINGHEADS STYLE EVERY SUNDAY NIGHT SINCE 1989 BRIAN LAMB THE CABLE CHANNEL'S FOUNDER AND DIRECTOR HAS ACTED AS HOST OF BOOKNOTES DURING WHICH HE INTERVIEWS NONFICTION AUTHORS FOR AN HOUR OURS IS A PUBLICAFFAIRS NICHE AND WE THINK IT'S ONE OF OUR MOST POPULAR SHOWS SAYS A SPOKESWOMAN BUT THEN CSPAN DOESN'T NEED TO KEEP ADVERTISERS HAPPY IT RUNS NO ADS AND DOESN'T GET RATED 9307070130 930707 DIVIDEND NEWS AES CORP AES CORP ARLINGTON VA THIS INDEPENDENT POWER PRODUCER RAISED ITS DIVIDEND 25 TO 25 CENTS A SHARE PAYABLE ON A QUARTERLY BASIS IT HAD BEEN PAYING 40 CENTS TWICE A YEAR THE DIVIDEND WHICH CAN BE TAKEN IN CASH OR STOCK IS PAYABLE SEPT 8 TO STOCK OF RECORD JULY 27 9307070129 930707 COMMODITIES SOARING GRAIN PRICES DRIVE A RALLY IN FUTURES MARKETS BY JEFFREY TAYLOR AND SCOTT KILMAN STAFF REPORTERS OF THE WALL STREET JOURNAL CHICAGO SOARING GRAIN PRICES LED THE BIGGEST SINGLEDAY COMMODITY PRICE RALLY IN NEARLY FIVE YEARS THE SURGE IN GRAIN PRICES TIED TO THE DEVASTATING FLOODING THROUGHOUT THE MIDWEST ALSO PRESSURED PRECIOUS METALS AND OTHER COMMODITY MARKETS SOYBEAN AND SILVER PRICES POSTED THE DAY'S BIGGEST GAINS BUT THE PRICES OF 18 OF THE 21 COMMODITIES IN THE COMMODITY RESEARCH BUREAU'S WIDELY WATCHED INDEX ROSE AS WELL THE COMMODITY MARKETS ARE FEEDING ONE ANOTHER SAID FRED DEMLER METALS ECONOMIST FOR PAINEWEBBER INC GRAINS WHICH ARE AN IMPORTANT COMPONENT OF THE CRB INDEX ARE UP SHARPLY BECAUSE OF WEATHERRELATED PROBLEMS AND GAINS IN THE CRB ARE SEEN AS A REASON TO BUY SILVER AND GOLD AT THE CHICAGO BOARD OF TRADE SOYBEANS FOR NOVEMBER DELIVERY LEAPED THE DAILY LIMIT OF 30 CENTS TO 69775 A BUSHEL A ONEDAY GAIN OF 45 AT NEW YORK'S COMMODITY EXCHANGE SILVER FOR SEPTEMBER DELIVERY ROSE 235 CENTS TO 5125 AN OUNCE OR 49 SETTING THE TONE FOR A ROLLICKING DAY IN PRECIOUSMETALS MARKETS MEANWHILE THE CRB'S 21COMMODITY INDEX WAS UP 529 TO 21730 OR 25 THE ADVANCE WAS THE INDEX'S BIGGEST SINGLEDAY JUMP SINCE JULY 26 1988 SAID ROBERT HAFER RESEARCH DIRECTOR FOR THE CRB NOT SINCE THE DROUGHT OF 1988 HAVE GRAIN PRICES SO STRONGLY PRESSURED THE PRICES OF OTHER COMMODITIES ANALYSTS SAID WHILE TRADERS SAID INFLATIONARY FEARS PLAYED A ROLE IN THE BROADBASED RALLY OTHERS INSISTED SUCH CONCERNS ARE UNFOUNDED FOR INSTANCE THE JOURNAL OF COMMERCE INDEX OF 18 RAW INDUSTRIAL COMMODITIES WHICH MANY ANALYSTS SAY IS A BETTER INFLATION BAROMETER THAN THE CRB ACTUALLY POSTED A SLIGHT DECLINE THE JOURNAL OF COMMERCE INDEX HAS BEEN MOVING DOWN FOR MOST OF THE YEAR CERTAINLY NOT SUGGESTING ANY RISE IN INFLATIONARY ACTIVITY SAID ANIRVAN BANERJI RESEARCH ECONOMIST AT COLUMBIA UNIVERSITY'S CENTER FOR INTERNATIONAL BUSINESS CYCLE RESEARCH OUR READING WOULD BE THAT INFLATIONARY FEARS ARE PREMATURE RATHER STRONG SUPPLYANDDEMAND IMBALANCES IN PRECIOUS METALS GRAINS AND OTHER COMMODITIES COUPLED WITH HEAVY BUYING BY COMMODITY SPECULATORS BOTH BIG AND SMALL APPEAR TO BE DRIVING THE RALLY MIDDLE EASTERN INVESTOR SYNDICATES WERE BIG BUYERS OF SILVER IN EUROPEAN MARKETS OVERNIGHT MONDAY FOLLOWING THEIR LEAD US COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY THAT TRADE ON THE BASIS OF MATHEMATICAL MARKET PROJECTIONS BEGAN BUYING SILVER FUTURES CONTRACTS AS SOON AS NEW YORK'S COMEX OPENED FOR TRADING YESTERDAY THE SILVER MARKET HAS BEEN UNDER PRESSURE FOR SO LONG THAT PRICES HAD DROPPED TOO FAR SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH PEOPLE VIEW SILVER AS BEING UNDERVALUED SILVER'S STRENGTH INFECTED THE PLATINUM AND GOLD MARKETS AS COMMODITY FUNDS AND SMALL SPECULATORS FLOODED THE TRADING PITS WITH ORDERS TO BUY FUTURES CONTRACTS SIMULTANEOUS GAINS IN THE CRB INDEX WHICH PRECIOUS METALS TRADERS MONITOR THROUGHOUT THE DAY FED THE BULLISH SENTIMENT IN THE PITS PLATINUM FOR OCTOBER DELIVERY WAS UP 1560 ON THE DAY SETTLING AT 40910 AN OUNCE WHILE AUGUST GOLD ROSE 640 TO 39310 AN OUNCE ANALYSTS EXPECT METALS MARKETS TO CONTINUE TO RALLY ALTHOUGH PERHAPS NOT AS SHARPLY AS THEY DID YESTERDAY THE NATURAL FORCES ARGUE FOR A SLOW METHODICAL RISE IN THE PRICE OF GOLD SAID BYRON R WEIN ANALYST FOR MORGAN STANLEY THESE SPECULATIVE FORCES ARE MERELY EXAGGERATING THE TREND IT'S GOING TO RISE ABOVE 400 AN OUNCE BUT HOW FAR I DON'T KNOW IN GRAIN MARKETS CORN AND WHEAT FUTURES PRICES FOLLOWED THE LEAD OF SOYBEANS WHICH IS THE CROP MOST SEVERELY DAMAGED BY THE FLOODING OF FIELDS THROUGHOUT IOWA AND THE UPPER MIDWEST US SOYBEAN PRICES HAVE CLIMBED 18 SINCE JUNE 1 RAINFALL CONTINUED TO DROWN FARM FIELDS AND IDLE GRAIN BARGE TRAFFIC ON THE MISSISSIPPI RIVER WHICH IS AMERICA'S MOST IMPORTANT EXPORT ARTERY MEANWHILE THE WEATHERRELATED CROP DAMAGE PROMPTED GRAIN ANALYSTS TO LOWER THEIR HARVEST FORECASTS TO LEVELS THAT SIGNAL UNCOMFORTABLY TIGHT SUPPLIES A YEAR FROM NOW THERE'S NO RELIEF IN SIGHT SAID JOSEPH VICTOR MARKETING DIRECTOR AT ALLENDALE INC CRYSTAL LAKE ILL AT THE BOARD OF TRADE CORN FOR DECEMBER DELIVERY JUMPED 975 CENTS TO SETTLE AT 25850 A BUSHEL THE WHEAT CONTRACT FOR DECEMBER DELIVERY CLIMBED NINE CENTS TO SETTLE AT 32250 A BUSHEL AS A RESULT OF THE LIMITUP MOVE IN SOYBEANS THE PERMISSIBLE TRADING LIMIT FOR SOYBEAN FUTURES CONTRACTS EXPANDS TODAY TO 45 CENTS A BUSHEL IN RECENT YEARS THE WEEK FOLLOWING THE FOURTH OF JULY HAS BEEN THE HARBINGER OF PRICE TRENDS FOR THE REST OF THE SUMMER YESTERDAY'S RALLY WAS BEING TAKEN AS A SIGN THAT SOYBEAN PRICES ARE HEADED HIGHER STILL PERHAPS TO THE 8ABUSHEL RANGE EVERYBODY HAS BEEN TALKING ABOUT SOYBEANS ABOVE 7 A BUSHEL SAID DONALD RATAJCZAK DIRECTOR OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY IN ATLANTA IF THE RAIN DOESN'T STOP UNTIL THE MIDDLE OF AUGUST WE'LL BE IN DOUBLE DIGITS IF WEATHER CONDITIONS DO IMPROVE MR RATAJCZAK SAYS IT MAY NOT BE THE DISASTER THAT WE'RE STARTING TO PUT INTO PRICES IN THE PITS BUT IT'S STILL NOT GOING TO BE A GREAT YEAR GRAIN TRADERS ARE CONCERNED THAT THE RUNUP IN CROP PRICES AND FLOODING ALONG THE MISSISSIPPI RIVER MIGHT DISRUPT RUSSIA'S PLAN TO USE A 500 MILLION FOOD AID PACKAGE TO BUY US CORN SOYBEAN MEAL AND OTHER COMMODITIES THE SUPPLY OF GRAIN AT EXPORT TERMINALS AROUND NEW ORLEANS COULD BE EXHAUSTED IF MOSCOW COMES FOR THE GRAIN BEFORE THE RIVER RETURNS TO ITS BANKS ANALYSTS SAID THE GRAIN RALLY IS ALSO HAVING A RIPPLE EFFECT ON LIVESTOCK PRICES GRAINS ARE USED AS FEED FOR HOGS AND CATTLE AND RISING GRAIN PRICES MEANS DIMINISHED CAPACITY FOR PROFITS FROM RAISING LIVESTOCK PARTLY AS A RESULT PORK BELLIES FOR AUGUST DELIVERY WERE UP 070 CENT TO 3652 CENTS A POUND WHILE AUGUST HOGS ROSE 012 CENT TO 4792 CENTS A POUND 9307070128 930707 STEEL PRODUCTION ROSE BY 25 IN LATEST WEEK WASHINGTON RAWSTEEL PRODUCTION BY US MILLS INCREASED 25 LAST WEEK TO 1869000 TONS FROM 1823000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 72 FROM THE 1744000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 887 OF ITS CAPABILITY LAST WEEK COMPARED WITH 861 THE PREVIOUS WEEK AND 81 A YEAR AGO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9307070126 930707 DE BEERS SALES SURGE BUT SLOWDOWN IS SEEN FOR THE SECOND HALF SPECIAL TO THE WALL STREET JOURNAL LONDON DE BEERS CENTENARY AG'S FIRSTHALF DIAMOND SALES SURGED 56 TO 254 BILLION FROM 163 BILLION IN THE SECOND HALF OF 1992 BUT THE COMPANY CAUTIONED AGAINST EXPECTING SIMILAR GAINS IN THE SECOND HALF OF THIS YEAR IT WOULD BE UNWISE TO ASSUME THAT SALES COULD MAINTAIN THEIR FIRSTHALF PACE SAID JULIAN OGILVIE THOMPSON CHAIRMAN OF DE BEERS WHICH CONTROLS ABOUT 80 OF THE WORLD MARKET FOR ROUGH UNCUT DIAMONDS WITHOUT A RESURGENCE IN WORLDWIDE ECONOMIC ACTIVITY THERE WON'T BE A BIG IMPROVEMENT IN DIAMOND JEWELRY SALES HE SAID MR OGILVIE THOMPSON SAID HE ALSO FEARS AN INCREASE IN DIAMOND SUPPLIES FROM PRODUCERS IN RUSSIA ANGOLA AND ZAIRE THE PENTAGON WHICH SOLD 77 MILLION OF DIAMONDS FROM THE US STRATEGIC STOCKPILE IN JUNE WILL BE AUCTIONING MORE GEMS THIS YEAR HE SAID 9307070125 930707 TREASURY WILL RAISE 123 BILLION IN CASH WASHINGTON THE TREASURY PLANS TO RAISE 123 BILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 244 BILLION IN SHORTTERM BILLS TO REDEEM 2317 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK BILLS MATURING OCT 14 1993 AND 26WEEK BILLS MATURING JAN 14 1994 THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794G24 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794H49 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EASTERN TIME MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9307070124 930707 WHO'S NEWS LESCO INC LESCO INC CLEVELAND WILLIAM A FOLEY 45 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS MAKER OF TURF CARE PRODUCTS AND EQUIPMENT MR FOLEY WHO HAS BEEN PRESIDENT AND CEO OF A COLLINS & AIKMAN INC UNIT SUCCEEDS JAMES I FITZGIBBON 66 WHO IS RETIRING AS CEO AND PRESIDENT MR FITZGIBBON WILL CONTINUE AS CHAIRMAN 9307070123 930707 WHO'S NEWS SONY CORP SONY CORP TOKYO GLENN P SBLENDORIO WAS NAMED CHIEF FINANCIAL OFFICER OF SONY ELECTRONIC PUBLISHING CO A UNIT OF THE SONY CORP OF AMERICA SUBSIDIARY THE POST IS NEW MR SBLENDORIO 37 YEARS OLD HAD BEEN VICE PRESIDENT OF FINANCE AT ROCHE MOLECULAR SYSTEMS A UNIT OF HOFFMANNLAROCHE INC WHICH IS OWNED BY ROCHE HOLDING LTD OF SWITZERLAND SONY ELECTRONIC PUBLISHING BASED IN NEW YORK CREATES PRODUCES AND DISTRIBUTES INTERACTIVE AND MULTIMEDIA SOFTWARE PRODUCTS FOR BUSINESS ENTERTAINMENT AND EDUCATION 9307070122 930707 INTERNATIONAL STENA AB'S FERRY LINE HINTS OF COMPETITION FOR CHANNEL TUNNEL GOTHENBURG SWEDEN AS IF THE EUROTUNNEL CONNECTING ENGLAND AND FRANCE DIDN'T HAVE ENOUGH TROUBLE A COMPETITOR IS THREATENING TO TEST THE WATERS ABOVE STENA AB OF SWEDEN SAID IT MAY PUT A HIGHSPEED FERRY INTO OPERATION ACROSS THE STRAIT OF DOVER IN THE NEXT FEW YEARS AND THAT ITS NEW BOAT WOULD BE FASTER THAN A TRAIN GOING THROUGH EUROTUNNEL PLC'S RAIL TUNNEL KNOWN AS THE CHUNNEL CLOSELY HELD STENA PARENT COMPANY OF SHIPPING AND FERRY LINE STENA LINE AB CLAIMS A TECHNOLOGICAL BREAKTHROUGH WILL ENABLE THE FERRIES TO MAINTAIN A CRUISING SPEED OF 40 KNOTS STENA SAID IT PLACED AN ORDER WITH MANUFACTURER FINNYARDS LTD RAUMA FINLAND VALUED AT 130 MILLION 196 MILLION FOR TWO OF THE FERRIES DELIVERY OF THE FIRST CRAFT IS EXPECTED IN 1995 AND IT WILL BE PUT TO SERVICE IN THE IRISH SEA DELIVERY OF THE SECOND IS EXPECTED IN 1996 AND THOUGH ITS SERVICE ROUTE HASN'T BEEN DECIDED IT COULD BE PUT TO WORK IN THE ENGLISH CHANNEL STENA SAID A HIGHSPEED MARITIME COMPETITOR WOULD BE THE MOST RECENT IN A SERIES OF PROBLEMS FOR EUROTUNNEL ITS 128 BILLION TUNNEL TO BE COMPLETED NEXT YEAR HAS BEEN BESET BY MISSED DEADLINES AND COST OVERRUNS 9307070121 930707 WHO'S NEWS POLAROID CORP POLAROID CORP CAMBRIDGE MASS RALPH GOMORY WAS ELECTED A DIRECTOR INCREASING BOARD MEMBERSHIP TO 13 AT THIS PHOTOGRAPHIC EQUIPMENT CONCERN MR GOMORY IS PRESIDENT OF THE ALFRED P SLOAN FOUNDATION A NONPROFIT ORGANIZATION IN NEW YORK 9307070120 930707 BUSINESS BRIEF BHA GROUP INC COMPANY SEES LESS INCOME THAN EXPECTED IN 3RD PERIOD BHA GROUP INC KANSAS CITY MO SLASHED ITS ONEMONTHOLD FORECAST FOR FISCAL THIRDQUARTER EARNINGS TO 10 CENTS A SHARE THE MAKER OF REPLACEMENT PARTS FOR AIR POLLUTION CONTROL EQUIPMENT ORIGINALLY EXPECTED TO REPORT EARNINGS FOR THE THIRD QUARTER ENDED JUNE 30 OF 18 CENTS A SHARE BHA GROUP ATTRIBUTED THE WEAKER FORECAST TO CUSTOMERS' DEFERRING CAPITAL SPENDING PLANS THE COMPANY ALSO CUT ITS THIRDQUARTER SALES ESTIMATE TO 187 MILLION FROM ITS ORIGINAL FORECAST OF 22 MILLION TO 23 MILLION FOR THE 1992 THIRD QUARTER BHA GROUP EARNED 16 MILLION OR 24 CENTS A SHARE ON SALES OF 232 MILLION 9307070119 930707 BUSINESS BRIEF ONE PRICE CLOTHING STORES INC NET MAY REACH HIGH END OF 2NDQUARTER ESTIMATES ONE PRICE CLOTHING STORES INC EXPECTS THAT SECONDQUARTER NET INCOME WILL BE NEAR THE HIGH END OF THE RANGE OF ANALYSTS' ESTIMATES HENRY D JACOBS JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW CURRENTLY ANALYSTS ARE ESTIMATING THAT THE RETAILER OF WOMEN'S AND CHILDREN'S APPAREL IN DUNCAN SC WILL REPORT PERSHARE EARNINGS OF 65 CENTS TO 68 CENTS FOR THE SECOND QUARTER THAT COMPARES WITH NET INCOME OF 53 CENTS A SHARE A YEAR EARLIER FOR 1993 PERSHARE EARNINGS WILL BE NEAR 120 MR JACOBS SAID ANALYST ESTIMATES FOR THE YEAR RANGE FROM 108 TO 120 IN 1992 ONE PRICE CLOTHING REPORTED EARNINGS OF 1 A SHARE SALES IN 1993 MR JACOBS ESTIMATED WILL TOTAL BETWEEN 230 MILLION AND 240 MILLION SALES IN 1992 TOTALED 184 MILLION 9307070118 930707 INTERNATIONAL EC PANEL IS LIKELY TO QUERY SUBSIDIES TO ITALIAN STEELMAKER SPECIAL TO THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN COMMUNITY COMMISSION IS EXPECTED TO CHALLENGE ITALIAN STATE SUBSIDIES TO THE TROUBLED STEEL MAKER ILVA SPA IN AN ATTEMPT TO INCREASE PRESSURE ON THE COMPANY TO MAKE BIG CUTS IN CAPACITY AT ITS WEEKLY MEETING TODAY THE COMMISSION IS LIKELY TO OPEN A FORMAL INVESTIGATION OF ITALIAN GOVERNMENT SUBSIDIES TO THE STEELMAKER ESTIMATED BY TE COMMISSION TO TOTAL 4 BILLION EUROPEAN CURRENCY UNITS 462 BILLION PEOPLE FAMILIAR WITH THE COMMISSION SAID IN ADDITION THE ITALIAN GOVERNMENT IS LIKELY TO BE ORDERED TO SUSPEND ITS RESCUE PLAN FOR THE COMPANY PENDING THE COMMISSION'S INVESTIGATION THE SOURCES SAID THE MOVE IS AIMED AT PUTTING PRESSURE ON ROME TO COME UP WITH A RESTRUCTURING PLAN THAT WOULD INCLUDE SUBSTANTIAL CUTS IN CAPACITY KAREL VAN MIERT THE EC'S COMPETITION COMMISSIONER HAS REJECTED ARGUMENTS PUT FORWARD BY EXECUTIVES FROM ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE THE STATEOWNED HOLDING COMPANY THAT OWNS ILVA THAT ITS RESTRUCTURING PLAN FOR THE COMPANY DOESN'T AMOUNT TO STATE AID IF AFTER TODAY'S EXPECTED ACTION ILVA STILL REFUSES TO MAKE THE CAPACITY CUTS THE NEXT STEP WOULD BE A DEMAND THAT ILVA REPAY AID GRANTED SO FAR BY THE ITALIAN GOVERNMENT SUCH A COURSE HOWEVER COULD LEAD TO LENGTHY COURT ACTION WITHOUT PREVENTING THE COLLAPSE OF THE EC'S PLAN TO RESCUE THE STEEL INDUSTRY THAT PLAN CALLS FOR CAPACITY CUTS TOTALING 30 MILLION METRIC TONS THROUGHOUT THE EC SPAIN IS ALSO RESISTING THE CAPACITY CUTS DEMANDED BY THE EC 9307070117 930707 MANAGEMENT IBM'S GERSTNER HOLDS BACK FROM SALES FORCE SHAKEUP BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL ARMONK NY IN HIS FIRST MAJOR STRATEGIC DECISION TO SURFACE SINCE HE TOOK OVER AS CHAIRMAN OF INTERNATIONAL BUSINESS MACHINES CORP THREE MONTHS AGO LOUIS V GERSTNER JR CITED THE SALES FORCE AS A KEY TO THE COMPANY'S ILLS BUT DECIDED TO LET IT RIDE FOR NOW MR GERSTNER'S DECISION COMMUNICATED TO HIS 13 TOP MANAGERS IN AN INTERNAL MEMO LAST WEEK SHOWS HOW HARD IT WILL BE TO CHANGE THE COMPUTER GIANT WHILE HE TOLD MANAGERS IT IS CLEAR TO ME THAT OUR CURRENT MARKETING ORGANIZATION DOESN'T ALWAYS FUNCTION WELL IE DOESN'T ALWAYS PERMIT US TO SERVE OUR CUSTOMER IN THE MOST EFFICIENT AND EFFECTIVE WAY HE ALSO CALCULATED THAT RADICAL REFORM POSED UNACCEPTABLE RISKS TO CUSTOMER LOYALTY CONSEQUENTLY HE WROTE I DON'T WANT TO UNDERTAKE A MAJOR REORGANIZATION OF IBM AT THIS TIME INSTEAD MANAGEMENT WILL TRY TO MAKE THE CURRENT SYSTEM WORK BETTER THE CURRENT 40000PERSON IBM SALES FORCE REPRESENTS A JUMBLE OF SALES APPROACHES THAT GREW UP UNDER FORMER CHAIRMAN JOHN AKERS THE OLD ORDER WHICH LIVED BY THE CREDO OF ONE FACE TO THE CUSTOMER BEGAN TO BREAK DOWN AS IBM TRIED TO DEAL WITH HUNDREDS OF COMPETITORS FLAT REVENUE PLUNGING PROFIT AND A REVOLUTION IN CORPORATE BUYING HABITS ITS TRADITIONAL BLUESUITED RANKS WERE INFILTRATED BY SPECIALISTS NICKNAMED FIGHTER PILOTS WITH A MISSION TO RAISE REVENUE AND PUSH NEGLECTED PRODUCTS MEANWHILE SOME PRODUCT LINES BEGAN TO AMASS THEIR OWN SALES FORCES INCLUDING THE PERSONAL COMPUTER DIVISION AND PENNANT SYSTEMS IBM'S PRINTER BUSINESS AND IBM TRIED OUT SALESMEN WHO SPECIALIZE IN CERTAIN INDUSTRIES MR GERSTNER'S DECISION TO STICK WITH THE STATUS QUO IS BOUND TO BE CONTROVERSIAL IN PRIVATE MEMBERS OF HIS INNER CIRCLE HAVE RIDICULED IBM'S SALES ORGANIZATION DESCRIBING IT AS THE EPITOME OF THE STODGY OLD IBM THEY WANT TO SHAKE UP BUT THEY HAVE RUN SMACK INTO TRADITIONALISTS WHO ARGUE THAT LETTING GO OF IBM'S ONEFACE IMAGE COULD RUIN CRUCIAL LONGSTANDING CLIENT RELATIONSHIPS JIM CASSELL VICE PRESIDENT OF GARTNER GROUP A STAMFORD CONN COMPUTER CONSULTING COMPANY SAYS HE THINKS MR GERSTNER'S DECISION CAN ONLY BE TEMPORARY UNTIL THE DUST SETTLES FROM PERSONNEL CUTBACKS HE SAYS A PLAN TO DIVIDE SALES BY BUSINESS LINES IS BEING TESTED IN THE UNITED KINGDOM AND WILL SOON BE IMPLEMENTED IN THE US WHAT THEY HAVE NOW IS TOO EXPENSIVE THEY CAN'T AFFORD IT MR CASSELL SAYS THEY'RE KIND OF HALFWAY NOW BETWEEN WHERE THEY WERE AND WHAT THEY'RE DOING IN THE UK IN AN INTERVIEW EARLIER THIS YEAR MICROSOFT CORP'S CHAIRMAN WILLIAM GATES A CRITIC WHO KNOWS THE COMPANY WELL SAID THAT THE UNIFIED SALES FORCE STILL DEFINES THE COMPANY IT'S A VERY HARD DECISION TO MAKE HE ADDED BUT I THINK IT'S INEVITABLE THAT THEY'LL GET RID OF IT MR GERSTNER'S DECISION TO STICK WITH THE CURRENT SETUP DOES RECOGNIZE IMPORTANT MARKETING CHALLENGES FACING THE TECHNOLOGY INDUSTRY AS A WHOLE IT'S EVOLVING SO QUICKLY WITH SO MANY NICHE PLAYERS THAT IT'S HARD FOR BIG COMPANIES LIKE IBM TO FIELD THE PERFECT SALES FORCE THE MARKET WILL BE IN TRANSFORMATION AT A PRETTY RAPID RATE FOR THE NEXT 10 YEARS SAYS WILLIAM DAVIDOW A PARTNER OF MOHR DAVIDOW VENTURES A WEST COAST VENTURE CAPITAL FIRM THE QUESTION IS WHERE WILL IT BE SAYS AN IBM SPOKESMAN THIS IS UNDER VERY ACTIVE DISCUSSION AND REVIEW IT'S NOT A CASUAL INTELLECTUAL ARGUMENT IT REALLY AFFECTS THE WAY WE DO BUSINESS EXPECTATIONS HAD BEEN HIGH THAT MR GERSTNER WOULD RESTRUCTURE THE SALES FORCE AND REFOCUS THE COMPANY A FORMER MCKINSEY CO CONSULTANT WITH MUCH EXPERIENCE IN THIS AREA MR GERSTNER IDENTIFIED CUSTOMERS AS A TOP ISSUE EARLY ON HIS INNER CIRCLE HAS TALKED A LOT ABOUT THE GENERAL ELECTRIC CO MODEL AND ABOUT SPLITTING IBM INTO SEPARATE FULLY INTEGRATED COMPANIES BUT THE NEW MANAGEMENT TEAM IS CLEARLY STILL COPING WITH THE MORE COMPLEX ISSUE OF HOW TO COORDINATE A LARGE PRODUCT LINE THAT IS INTERLINKED ONE FACE TO THE CUSTOMER IS A THING OF THE PAST SAYS GERALD CZARNECKI ONE OF MR GERSTNER'S NEW OUTSIDE TOP EXECUTIVES WHO WAS RECRUITED TO REORGANIZE THE COMPANY LOU IS PICKING SOME KEY CUSTOMERS TO TRY TO FOCUS ON REEVALUATING HOW WE DEAL WITH THEM IT'S NOT A TRIVIAL CHALLENGE MR AKERS WAS HEADED IN THE DIRECTION OF BREAKING BIG BLUE INTO SMALLER FULLY INTEGRATED COMPANIES WHEN HE ALLOWED THE PERSONAL COMPUTER DIVISION MORE INDEPENDENCE AND GAVE PENNANT SYSTEMS ITS OWN SALES FORCE BUT SOME CONSULTANTS HAVE BEEN TRYING TO SELL MR GERSTNER ON A DIFFERENT PLAN THAT WOULD BREAK THE SALES FORCE UP ALONG INDUSTRY LINES THIS WOULD MEAN USING HIGHLY TRAINED REPRESENTATIVES IN AREAS SUCH AS BANKING AIRLINES OR FINANCIAL SERVICES WHO WOULD CRISSCROSS THE COUNTRY LOOKING AFTER CUSTOMERS IN SPECIFIC NICHES THE MAIN ARGUMENT AGAINST BREAKING UP THE SALES FORCE INVOLVES CUSTOMER TIES CUSTOMERS HAVE TOLD IBM THAT THEY DON'T WANT TO BE CONFUSED BY 20 DIFFERENT IBM SALESMEN CALLING ON THEM THAT WAS A THEME THAT IBM'S TOP 200 US AND CANADIAN CUSTOMERS PRESSED ON MR GERSTNER TIME AND AGAIN WHEN THEY GATHERED AT A MEETING IN CHANTILLY VA IN MAY CUSTOMERS ALSO SAY THEY WANT SOLUTIONS NOT PIECES OF TECHNOLOGY WHAT'S THE IDEAL SALES FORCE ASKS PETE VAN OPENS SYSTEMS COORDINATOR FOR NORTHWESTERN MUTUAL LIFE INSURANCE CO A CLAIRVOYANT SALES REPRESENTATIVE WHO KNOWS WHAT I NEED BUT EVEN AT NORTHWESTERN WHERE THE IBM REPRESENTATIVE VISITS DAILY AND EVEN MAINTAINS AN OFFICE PROBLEMS HAVE CROPPED UP IBM AT THE PEAK OF ITS POWER WASN'T REALLY LISTENING TO CUSTOMERS ANYMORE SAYS MR VAN OPENS HE SAYS HE TOLD IBM SEVERAL YEARS AGO THAT HE REALLY NEEDED A COMMON LANGUAGE PLATFORM THAT WOULD ALLOW DIFFERENT COMPUTERS TO COMMUNICATE WITH EACH OTHER IBM STILL HASN'T FOUND A SOLUTION COMPLAINS MR VAN OPENS HIS ANALYSIS IBM HAS TRADITIONALLY THOUGHT IN ITS LITTLE WORLD AND THOUGHT THESE ARE THE PROBLEMS THE CUSTOMER IS HAVING AND THEY AREN'T MY PROBLEMS BUT CRITICS PROBABLY WON'T BE SATISFIED WITH IBM'S LATEST EFFORT TO DEAL WITH ITS SALES PROBLEMS SINCE IBM HAS BEEN BACK AND FORTH ON THE ISSUE SO OFTEN THEY FEAR THAT WITHOUT A CLEAR DIRECTION THE MUDDLE WILL CONTINUE TO DRAG IBM DOWN WE HAVE AN AWFULLY BROAD SALES MANUAL AND THAT DOESN'T WORK ANYMORE SAYS A MANAGER YOU CAN'T BE A GENERALIST 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 9307070116 930707 NAILPOLISH MAKERS SETTLE SUITS INVOLVING TOLUENE IN PRODUCTS SAN FRANCISCO FOUR NAILPOLISH MANUFACTURERS HAVE SETTLED LAWSUITS BROUGHT BY AS YOU SOW AN ENVIRONMENTAL GROUP OVER USE OF THE CHEMICAL TOLUENE IN THEIR PRODUCTS THE FOUR COMPANIES ARE REVLON INC A NEW YORK UNIT OF MACANDREWS & FORBES HOLDINGS INC PAVION LTD NYACK NY JONEL A CHICAGO DIVISION OF BARRISTO LTD AND ARTMATIC USA COSMETICS NEW YORK THE COMPANIES HAVE AGREED TO STOP USING TOLUENE IN THEIR PRODUCTS AND TO END DISTRIBUTION OF TOLUENECONTAINING NAIL POLISH IN CALIFORNIA NINE OTHER COSMETIC COMPANIES PREVIOUSLY REACHED SIMILAR SETTLEMENTS AS YOU SOW FILED SUIT AGAINST A TOTAL OF 43 NAILPOLISH MAKERS CALIFORNIA PUT TOLUENE ON A LIST OF REGULATED CHEMICALS IN 1992 BECAUSE OF LINKS TO BIRTH DEFECTS TOLUENE ALLOWS NAIL POLISH TO REMAIN FLUID AND SPREAD EVENLY A REVLON SPOKESWOMAN SAID THE COMPANY BEGAN REMOVING TOLUENE FROM ITS NAIL POLISHES MORE THAN A YEAR AGO AS YOU SOW KNEW OF REVLON'S CHANGE WHEN IT FILED THE LAWSUIT SHE SAID ADDING THAT REVLON NO LONGER USES TOLUENE WHILE THE INDIVIDUAL COMPANIES REACHED THEIR SETTLEMENTS AN INDUSTRY ORGANIZATION SAID YESTERDAY IT IS CONTINUING TO FIGHT AS YOU SOW'S CLAIMS THAT SOME NAILPOLISH MAKERS HAVE EXCEEDED ALLOWABLE TOLUENE LEVELS AND FAILED TO WARN CONSUMERS THE COSMETIC TOILETRY AND FRAGRANCE ASSOCIATION SAID THAT ALL NAIL POLISHES ON THE MARKET ARE SAFE TO USE THOSE WITH TOLUENE CONTAIN LEVELS THAT HAVE ONLY ENOUGH TO MAKE NAIL POLISH FLOW SMOOTHLY AND THAT'S IT SAID JIM MATTESICH ATTORNEY FOR THE TRADE GROUP MR MATTESICH SAID THE TRADE GROUP AND MANY OTHER NAILPOLISH COMPANIES IN THEIR PREVIOUSLY FILED COUNTERSUIT WILL VIGOROUSLY CONTEST THE ENVIRONMENTAL GROUP'S CLAIMS 9307070115 930707 WHO'S NEWS FEDERATED DEPARTMENT STORES INC FEDERATED DEPARTMENT STORES INC CINCINNATI THIS RETAILER NAMED SUSAN KRONICK 41 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER OF ITS ATLANTABASED RICH'S/GOLDSMITH UNIT MS KRONICK PREVIOUSLY SENIOR EXECUTIVE VICE PRESIDENT IN THE COMPANY'S BLOOMINGDALE'S DIVISION SUCCEEDS RUSSELL STRAVITZ WHO LAST WEEK BECAME CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF RICH'S/GOLDSMITH 9307070114 930707 BUSINESS BRIEF ADVACARE INC DELAY IN PAYING CREDIT LINE OF 22 MILLION IS APPROVED ADVACARE INC SAID IT WILL DELAY PRINCIPAL AND INTEREST PAYMENTS ON A 22 MILLION CREDIT LINE AFTER REACHING AGREEMENTS WITH ITS MAIN BANK AND SUBORDINATED DEBTHOLDERS UNDER THE ACCORDS THE DALLAS COMPANY WILL DELAY THE PAYMENTS ORIGINALLY DUE LAST WEEK UNTIL THE END OF AUGUST WHILE THE COMPANY TRIES TO RESTRUCTURE THE DEBT A SPOKESMAN SAID THE COMPANY WHICH PROVIDES BUSINESS SERVICES TO HEALTHCARE COMPANIES IS HAVING DISCUSSIONS WITH THE SENIOR LENDER ABOUT THE RESTRUCTURING ADVACARE RECENTLY REPORTED A LOSS OF 333 MILLION OR 286 A SHARE FOR THE SECOND QUARTER ENDED MARCH 31 REVENUE FELL TO 162 MILLION FROM 185 MILLION A YEAR EARLIER 9307070113 930707 WHO'S NEWS AMERICAN HOME PRODUCTS CORP AMERICAN HOME PRODUCTS CORP NEW YORK BERNARD POUSSOT 41 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF THE COMPANY'S INTERNATIONAL PHARMACEUTICAL DIVISION WYETHAYERST INTERNATIONAL INC HE HAD BEEN WYETHAYERST'S GROUP VICE PRESIDENT FOR EUROPE MR POUSSOT SUCCEEDS JEAN HARDY WHO RETIRED IN ADDITION TO PHARMACEUTICALS AMERICAN HOME PRODUCTS SELLS MEDICAL SUPPLIES AND EQUIPMENT AND FOOD PRODUCTS 9307070112 930707 REAL ESTATE OWNED BY EXGM CAR DEALER TO BE PUT UP FOR SALE NEW YORK A PORTFOLIO OF REAL ESTATE SEIZED FROM JOHN MCNAMARA A FORMER GENERAL MOTORS CORP CAR DEALER ON LONG ISLAND WHO WAS CHARGED WITH CHEATING THE COMPANY OF HUNDREDS OF MILLIONS OF DOLLARS WILL BE PUT UP FOR SALE THE SEALEDBID SALES INCLUDE 61 RESIDENTIAL OFFICE RETAIL AND INDUSTRIAL PROPERTIES IN NEW YORK FLORIDA AND MARYLAND AND A GOLF COURSE COMMUNITY AND VACANT LAND RANGING IN VALUE FROM 25000 TO 20 MILLION MR MCNAMARA PLEADED GUILTY TO FEDERAL RACKETEERING CHARGES THAT HE DEFRAUDED GM IN A SEVENYEAR SCHEME AND THAT HE BRIBED SEVERAL STATE AND LOCAL OFFICIALS HE WAS ACCUSED OF OBTAINING HUNDREDS OF MILLIONS OF DOLLARS IN LOANS FROM GM FOR NONEXISTENT VAN CONVERSIONS THE SALES ON VARIOUS DAYS THIS MONTH WILL BE CONDUCTED BY LASALLE PARTNERS A CHICAGOBASED REAL ESTATE FIRM AND NATIONAL REAL ESTATE CLEARINGHOUSE INC UNDER THE DIRECTION OF A TRUSTEE APPOINTED BY A FEDERAL COURT IN BROOKLYN NY 9307070111 930707 INSIDE TRACK INSIDERS OFTEN DUMP SHARES LONG BEFORE CONCERNS ENTER BANKRUPTCY STUDY SAYS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INSIDERS TEND TO ABANDON SHIP LONG BEFORE THEY INFORM SHAREHOLDERS THAT THEIR COMPANY IS HEADED FOR THE SHOALS OF BANKRUPTCY A NEW STUDY SAYS THE SURVEY SHOWS THAT TOP EXECUTIVES AT TROUBLED PUBLICLY TRADED COMPANIES OFTEN BEGIN DUMPING LARGE AMOUNTS OF SHARES AS MUCH AS TWO YEARS BEFORE FILING FOR CORPORATE BANKRUPTCY THE STUDY PREPARED BY THE UNIVERSITY OF MICHIGAN'S SCHOOL OF BUSINESS ADMINISTRATION ALSO SAYS THAT DURING THE TWO YEARS LEADING UP TO A BANKRUPTCY FILING SHAREHOLDERS LOSE ON AVERAGE 75 OF THEIR INVESTMENTS PROFESSORS MICHAEL BRADLEY AN EXPERT ON BANKRUPTCY REFORM AND H NEJAT SEYHUN AN EXPERT ON INSIDER TRADING SAID MOST OF THE INSIDER SELLING OCCURS IN THE YEAR BEFORE MANAGEMENT FILES FOR CHAPTER 11 PROTECTION FROM CREDITORS BUT INSIDER SELLING INVARIABLY STOPS IN THE 30 DAYS PRIOR TO THE FILING THE STUDY NOTES AS INSIDERS SEEK TO AVOID REGULATORY SCRUTINY IN THAT SENSITIVE PERIOD OUR FINDINGS THAT CORPORATE INSIDERS SELL THEIR HOLDINGS PRIOR TO FILING FOR BANKRUPTCY ARE INCONSISTENT WITH THE NOTION THAT CORPORATE MANAGERS ARE UNEXPECTEDLY THRUST INTO CHAPTER 11 THE AUTHORS SAID OUR RESULTS INDICATE THAT FILING FOR BANKRUPTCY IS A STRATEGIC DISCRETIONARY MANAGEMENT DECISION THE RESULTS ALSO INDICATE THAT CORPORATE MANAGERS KNOW FULL WELL THE EFFECT THAT A FILING WILL HAVE ON THEIR FIRM'S STOCK PRICE AND THAT THEY SELL THEIR HOLDINGS IN ORDER TO AVOID SIGNIFICANT CAPITAL LOSSES THE STUDY EXAMINES ALL NEW YORK STOCK EXCHANGE OR AMERICAN STOCK EXCHANGE MEMBER FIRMS THAT FILED A VOLUNTARY BANKRUPTCY PETITION BETWEEN 1975 AND 1991 OR ROUGHLY 250 FIRMS THE CASES STUDIED INCLUDE CHAPTER 11 FILINGS BY WEDTECH CORP IN 1986 TEXACO INC IN 1987 ALLEGEHENY INTERNATIONAL INC IN 1988 AND INTEGRATED RESOURCES IN 1990 THE STUDY TRACKS INSIDER TRANSACTIONS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION MR BRADLEY IN AN INTERVIEW SAID THE STUDY'S CHIEF POLICY IMPLICATION IS THAT THERE IS A NEED FOR BETTER ENFORCEMENT OF INSIDERTRADING LAWS BY THE SEC THOSE LAWS HE NOTES REQUIRE THAT INSIDERS WITH MATERIAL INFORMATION EITHER DISCLOSE THAT INFORMATION OR ABSTAIN FROM TRADING MANAGERS BY SELLING SHARES DO NOT HAVE THEIR INTERESTS ALIGNED WITH SHAREHOLDERS GOING INTO BANKRUPTCY AND THROUGHOUT THE BANKRUPTCY PROCESS HE SAID CLEARLY OUR EVIDENCE SHOWS THAT THESE MANAGERS ARE TRADING ON INSIDE INFORMATION WHICH IS IN VIOLATION OF THE LAW AS FAR AS I KNOW I DON'T SEE ANY OF THESE GUYS GETTING PROSECUTED MR BRADLEY ADDED SEC OFFICIALS SAY THE AGENCY HAS BEEN AGGRESSIVE IN TRACKING DOWN AND PROSECUTING INSIDERTRADING CASES RELATED TO CORPORATE BANKRUPTCY BUT THEY ADD MORE MIGHT BE DONE IF THE AMOUNT OF SUCH INSIDER ACTIVITY IS GREATER THAN THEY REALIZE WE BRING A FAIR NUMBER OF WHAT WE CALL BAD NEWS' INSIDERTRADING CASES INCLUDING THOSE INVOLVING BANKRUPTCY SAYS THOMAS C NEWKIRK ASSOCIATE DIRECTOR OF THE SEC'S ENFORCEMENT DIVISION IN WASHINGTON DC THE MOST NOTORIOUS EXAMPLE OF THAT IS THE CRAZY EDDIE INC CASE THAT WE BROUGHT IN 1989 BUT I WANT TO LOOK AT THE MICHIGAN STUDY AND SEE IF THIS IS A PROBLEM WE SHOULD BE DOING MORE ABOUT ADDS WILLIAM R MCLUCAS DIRECTOR OF THE SEC'S ENFORCEMENT DIVISION I DON'T KNOW THE EXTENT TO WHICH TRADING BY INSIDERS AT DISTRESSED COMPANIES VIOLATES THE LAW YOU HAVE TO LOOK AT THE FACTS IN EACH CASE WHAT'S THE LEVEL OF DISCLOSURE ALREADY OUT THERE WHAT DO SHAREHOLDERS ALREADY KNOW HE SAID A KEY QUESTION IS WHETHER THE INSIDER ACTIVITY INVOLVES FRAUD THE SEC ENFORCEMENT DIRECTOR SAID HIS AGENCY BRINGS AN AVERAGE OF 30 TO 40 CIVIL CASES OF INSIDER TRADING A YEAR WHILE THE US JUSTICE DEPARTMENT BRINGS A HANDFUL OF CRIMINAL INSIDER CASES INDIVIDUAL SHAREHOLDERS SHOULD BE CONCERNED ABOUT THE STUDY'S FINDINGS DESPITE THEIR SOMEWHAT JADED VIEW ABOUT INSIDER TRADING SAID JOHN MARKESE PRESIDENT OF THE CHICAGOBASED AMERICAN ASSOCIATION OF INDIVIDUAL INVESTORS INDIVIDUAL INVESTORS HAVE A PRETTY JAUNDICED VIEW ABOUT INSIDERS THEY SEE THEM AS TRADING ON MATERIAL NONPUBLIC INFORMATION WHILE THE SEC OBVIOUSLY HAS ITS LAWS TO ENFORCE MOST INDIVIDUALS FEEL THAT THE ENFORCEMENT HAS BEEN LAX OR THAT INSIDER TRADING IS IMPOSSIBLE TO POLICE WITH ANY EFFICIENCY FOR CASES INVOLVING THE TYPICALLY LONG SLOW DESCENT INTO BANKRUPTCY MR MARKESE NOTED INDIVIDUAL SHAREHOLDERS ARE USUALLY UNAWARE OF THE SPECIFICS OF INSIDER SELLING BY TOP INSIDERS EVEN THOUGH THAT INFORMATION IS PUBLICLY AVAILABLE BANKRUPTCY OCCURS OVER A LONGER PERIOD OF TIME WITH NO ABRUPT ANNOUNCEMENT MAKING IT HARDER TO TRACK BY THE SEC AND BY INDIVIDUALS SAID MR MARKESE NOT SURPRISINGLY THE MICHIGAN BUSINESS SCHOOL STUDY POINTS OUT THAT INSIDERS AT TROUBLED FIRMS SELL ON AVERAGE 30000 MORE SHARES IN THE YEAR LEADING UP TO A BANKRUPTCY FILING THAN DO INSIDERS AT FINANCIALLY SOUND COMPANIES THEY ALSO SELL MORE THAN EXECUTIVES AT AILING FIRMS THAT AVOID BANKRUPTCY PROCEEDINGS THIS SUGGESTS THAT FILING IS A MORE ACUTELY ANTICIPATED EVENT THAN OTHER EVENTS THAT CAUSE A SIGNIFICANT FALL IN A FIRM'S STOCK PRICE THE AUTHOR SAID TOP OFFICERS OF WOMEN'S FOOTWEAR MAKER NINE WEST GROUP INC PLAN TO SELL ABOUT 200 MILLION OF THEIR STOCK IN THE COMPANY THEY TOOK PUBLIC FIVE MONTHS AGO MOST OF THAT AMOUNT APPARENTLY WILL BE PROFIT BEFORE TAXES FOR THE FOUR OFFICIALS THEY PAID AN AVERAGE 24 CENTS A SHARE FOR THEIR HOLDINGS ACCORDING TO THE PROSPECTUS FOR THE INITIAL PUBLIC OFFERING OF EIGHT MILLION SHARES IN FEBRUARY AT 1750 A SHARE THE STAMFORD CONN COMPANY REGISTERED 69 MILLION SHARES IN A SECONDARY OFFERING ON BEHALF OF JEROME FISHER CHAIRMAN VINCENT CAMUTO COCHAIRMAN AND PRESIDENT WAYNE WEAVER DIRECTOR AND MARC FISHER GROUP PRESIDENT OF JERVIN INC WHICH MERGED WITH NINE WEST GROUP AND PRESIDENT OF ITS SPECIALTY MARKETING DIVISION THE COMPANY WILL RECEIVE NONE OF THE PROCEEDS FROM THE OFFERING BEING MADE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO THE OFFICIALS WILL CONTINUE TO HOLD MORE THAN 125 MILLION SHARES OF NINE WEST OR ABOUT 56 OF THE SHARES OUTSTANDING SHARES IN NEW YORK STOCK EXCHANGE TRADING NINE WEST CLOSED AT 28125 DOWN 625 CENTS 9307070110 930707 INTERNATIONAL CHILEAN JOBLESS RATE INCREASES SANTIAGO CHILE UNEMPLOYMENT STOOD AT 46 IN CHILE DURING THE MARCHMAY PERIOD UP FROM 44 IN THE PREVIOUS THREEMONTH PERIOD THE GOVERNMENT SAID THE NATIONAL STATISTICS INSTITUTE SAID THE UNEMPLOYMENT LEVEL REMAINED UNCHANGED FROM THE YEAREARLIER PERIOD 9307070109 930707 WHO'S NEWS FOR BETTER LIVING INC FOR BETTER LIVING INC SAN JUAN CAPISTRANO CALIF RICHARD G FABIAN WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS MAKER OF CONCRETE AND PLASTIC PRODUCTS SUCCEEDING HIS FATHER FG FABIAN JR WHO RESIGNED BUT WILL REMAIN A DIRECTOR WITH THE TITLE OF CHAIRMAN EMERITUS THE YOUNGER MR FABIAN HAD BEEN PRESIDENT AND VICE CHAIRMAN THE COMPANY ALSO NAMED GEORGE S WEST PRESIDENT AND CHIEF EXECUTIVE OF ITS QUIKSET ORGANIZATION SUBSIDIARY THE COMPANY SAID IT INCREASED THE SIZE OF ITS BOARD TO FIVE MEMBERS FROM FOUR BY NAMING KARL M STOCKBRIDGE TO THE PANEL MR STOCKBRIDGE WHO SERVED AS A DIRECTOR FROM 1988 TO 1990 WAS ALSO NAMED A VICE PRESIDENT 9307070108 930707 YIELDS ON MOST CDS EASED DURING WEEK THAT ENDED YESTERDAY NEW YORK YIELDS ON MOST CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE DOWN IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS EASED TO 272 FROM 273 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS SLIPPED TO 478 FROM 480 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS INCHED UP TO 312 FROM 310 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD FELL TO 450 FROM 460 THE SURVEY SAID ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON SIXMONTH CERTIFICATES EASED TO 282 FROM 284 ON FIVEYEAR JUMBOS THE AVERAGE SLIPPED TO 478 FROM 484 ACCORDING TO BANXQUOTE 9307070107 930707 BUSINESS BRIEF CHEMICAL BANKING CORP TEXAS COMMERCE BANK IS SET TO BUY SOCIETY CORP UNIT CHEMICAL BANKING CORP NEW YORK SAID ITS TEXAS COMMERCE BANK UNIT AGREED TO ACQUIRE AMERITRUST TEXAS CORP A UNIT OF SOCIETY CORP CLEVELAND FOR ABOUT 130 MILLION UNDER TERMS OF THE TRANSACTION WHICH IS STILL SUBJECT TO REGULATORY APPROVAL TEXAS COMMERCE BANK WILL ALSO PAY AN AMOUNT EQUALING THE NET TANGIBLE EQUITY OF THE UNIT ON THE DAY OF THE TRANSACTION ESTIMATED AT 10 MILLION SOCIETY CORP SAID IT EXPECTS THE SALE TO BE COMPLETED IN THE FOURTH QUARTER AT WHICH TIME IT EXPECTS TO RECORD A GAIN OF 101 MILLION OR EIGHT CENTS A SHARE AFTER TAXES IN THE 1992 FOURTH QUARTER SOCIETY CORP HAD NET INCOME OF 865 MILLION OR 72 CENTS A SHARE SOCIETY CORP SAID IT DECIDED TO DIVEST ITSELF OF AMERITRUST TEXAS BECAUSE IT HAD NO OTHER COMMERCIAL BANKING BUSINESSES IN THE STATE AMERITRUST TEXAS BASED IN DALLAS HAS ABOUT 94 BILLION IN ASSETS 9307070106 930707 SUPERCUTS INC BUYS 30 STORES SAN FRANCISCO SUPERCUTS INC SAID IT PURCHASED 30 FRANCHISED STORES FOR COMMON STOCK THE CHAIN OF HAIRCUTTING SHOPS SAID IT BOUGHT BACK 25 STORES IN FLORIDA AND FIVE IN PUERTO RICO FOR ABOUT 504000 SHARES IN OVERTHECOUNTER TRADING SUPERCUTS CLOSED AT 1425 DOWN 50 CENTS OR 34 9307070105 930707 BUSINESS BRIEF PROTEON INC COMPANY EXPECTS TO REPORT LOSS FOR ITS SECOND QUARTER PROTEON INC CITING AN UNANTICIPATED DECLINE IN REVENUE DUE TO RECENT ORGANIZATIONAL CHANGES SAID IT EXPECTS TO REPORT A LOSS FOR ITS SECOND QUARTER ENDED JULY 3 THE WESTBOROUGH MASS COMPANY EXPECTS A LOSS OF SEVEN CENTS TO 10 CENTS A SHARE ON REVENUE SOMEWHAT BELOW 277 MILLION IN THE YEARAGO SECOND PERIOD THE MAKER OF COMPUTER NETWORKING PRODUCTS HAD NET INCOME OF 25 MILLION OR 17 CENTS A SHARE ON REVENUE OF 315 MILLION THE COMPANY RECENTLY CUT ITS WORK FORCE 15 AND TOOK A RELATED RESTRUCTURING CHARGE OF 23 MILLION IN ITS FIRST QUARTER IT NOTED WE CONTINUE TO BELIEVE THAT OUR NEW ORGANIZATIONAL FOCUS AND CONTINUED INVESTMENTS IN SALES AND MARKETING PROGRAMS ARE THE CORRECT COURSE FOR THE COMPANY 9307070104 930707 VINTAGE PETROLEUM'S PURCHASE TULSA OKLA VINTAGE PETROLEUM INC SAID IT COMPLETED ITS ACQUISITION OF OIL AND GAS PROPERTIES FROM DUPONT CO'S CONOCO INC UNIT FOR 38 MILLION THE INDEPENDENT ENERGY COMPANY SAID THE PROPERTIES IN VENTURA COUNTY CALIF HAVE PROVED RESERVES ESTIMATED AT 117 MILLION BARRELS OF OIL AND 58 BILLION CUBIC FEET OF GAS 9307070103 930707 SO FAR HE HASN'T CLAIMED CREDIT FOR BRINGING COMBUSTION TO WOOD BY JYOTI THOTTAM STAFF REPORTER OF THE WALL STREET JOURNAL YOU CAN ROAST A CHICKEN WITH WOOD BUT BE CAREFUL HOW YOU TALK ABOUT IT CALLING IT WOOD ROASTED MAY RUN YOU AFOUL OF SHELDON JACOBS A MINNEAPOLIS RESTAURATEUR FIGHTING TO KEEP HIS WOODROAST TRADEMARK FROM GOING THE WAY OF THE THERMOS AND ESCALATOR MR JACOBS BROTHER OF FINANCIER IRWIN JACOBS SAYS HE HAS SPENT OVER 3 MILLION DEVELOPING HIS 23FUNCTION COMPUTERIZED WOODBURNING OVEN IT'S LIKE A MERCEDESBENZ USED ONLY IN SHELLY'S WOODROAST RESTAURANT THE OVENS COOK FOOD SLOWLY OVER A COMBINATION OF WOODS I CAN MAKE YOUR TENNIS SHOE TASTE GOOD HE SAYS SINCE MR JACOBS GOT HIS TRADEMARK IN 1987 WOOD ROASTING HAS BECOME MORE POPULAR SO LOOKING FOR RESTAURANTS USING WOODROAST AND VARIATIONS HAS BECOME AN INCREDIBLY EXPENSIVE ORDEAL HE SAYS MOST RESTAURANTS DON'T MIND CHANGING THE PHRASE HE SAYS BUT A FEW HAVE RESISTED IN MARCH MR JACOBS'S COMPANY WOODROAST SYSTEMS INC SUED ROASTERS INC OPERATOR OF KENNY ROGERS ROASTERS WOOD ROASTED CHICKEN AND CLUCKERS WOOD ROASTED CHICKEN INC ROASTERS EVENTUALLY AGREED TO PHASE OUT WOOD ROASTED FROM ITS NAME AND CLUCKERS NOW MAKES OAK ROASTED CHICKEN THE TWO CHAINS ARE EMBROILED IN THEIR OWN SUIT CLUCKERS HAS CHARGED ROASTERS WITH COPYING ITS RECIPES AND DECOR MR JACOBS'S LATEST SUIT PITS WOODROAST SYSTEMS AGAINST THE PALOMINO EUROMETRO BISTRO MINNEAPOLIS WHOSE MENUS LIST WOOD ROASTED SEAFOOD AND VEGETABLES THE FEDERAL APPEALS COURT IN MINNEAPOLIS RECENTLY UPHELD A LOWERCOURT INJUNCTION BARRING RESTAURANTS UNLIMITED INC THE BISTRO'S OWNER FROM USING WOOD ROASTED ON ITS MENUS UNTIL THE CASE IS RESOLVED IN ITS COMPLAINT WOODROAST SAYS THAT BY CALLING MENU ITEMS WOOD ROASTED RESTAURANTS UNLIMITED FALSELY DESCRIBES SHELLY'S WOODROAST AS THE SOURCE OF THE BISTRO'S CHOW RAY LINDSTROM CHIEF EXECUTIVE OF RESTAURANTS UNLIMITED DISAGREES WE THINK THAT ADEQUATELY DESCRIBES THE PROCESS WE USE TO ROAST CHICKEN SOME RESTAURATEURS ARE PUZZLED BY MR JACOBS'S ZEAL DOES THE TERM WOODROASTING' REALLY MEAN THAT MUCH ASKS STEPHEN LOFFREDO OWNER OF ZOE A MANHATTAN RESTAURANT WITH A WOODBURNING OVEN MR JACOBS SAYS HE UNDERSTANDS THAT HIS VIGILANCE MAY APPEAR EXCESSIVE BUT HE SAYS I FEEL LIKE SOMEONE CAME INTO MY GARAGE TOOK MY CAR AND MOVED IT TO FLORIDA I HAVE TO GET IT BACK 9307070102 930707 BUSINESS BRIEF TANDY CORP SALE OF INTERESTS IN 2 VENTURES IS SLATED FOR 315 MILLION TANDY CORP FORT WORTH TEXAS SAID IT AGREED TO SELL ITS HALF INTEREST IN TWO MANUFACTURING JOINT VENTURES TO ITS PARTNER NOKIA CORP FOR 315 MILLION AS PART OF ITS CONTINUING EFFORT TO SHED NONRETAILING OPERATIONS THE ELECTRONICS RETAILER SAID IT WILL TRANSFER ALL ITS SHARES IN THE TWO CELLULARPHONE MANUFACTURING COMPANIES ONE IN SOUTH KOREA AND THE OTHER IN FORT WORTH TO NOKIA FOR BOOK VALUE PLUS 65 MILLION TANDY SAID ITS CELLULARPHONE RETAILING OPERATIONS WILL CONTINUE TO BE A MAJOR CUSTOMER OF NOKIA A CELLULARPHONE MAKER BASED IN HELSINKI FINLAND TANDY RECENTLY AGREED TO SELL ITS PERSONAL COMPUTER MANUFACTURING OPERATIONS TO AST RESEARCH INC AND ITS MICRONIC HANDHELD COMPUTER OPERATION TO NORAND CORP A DIVESTITURE OF THE JOINTVENTURE INTERESTS HADN'T BEEN PLANNED BUT NOKIA RECENTLY APPROACHED THE COMPANY ABOUT A POSSIBLE SALE SAID JOHN ROACH TANDY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9307070101 930707 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ELEKTEK INC AN INITIAL OFFERING OF 15 MILLION COMMON SHARES VIA CHICAGO CORP AND ROBERT W BAIRD & CO INTERDIGITAL COMMUNICATIONS CORP AN OFFERING OF UP TO 2070000 CONVERTIBLE EXCHANGEABLE PREFERRED SHARES VIA PRUDENTIAL SECURITIES INC AND OPPENHEIMER & CO SFX BROADCASTING INC AN INITIAL OFFERING OF 32 MILLION CLASS A COMMON SHARES VIA KIDDER PEABODY & CO AND FURMAN SELZ INC 9307070100 930707 BOMBAY CO SALES UP FORT WORTH TEXAS BOMBAY CO SAID SALES FOR THE SIXWEEK PERIOD ENDED SUNDAY INCREASED ABOUT 69 TO 239 MILLION FROM 142 MILLION FOR THE FIVEWEEK PERIOD ENDED JUNE 28 1992 THE SPECIALTY RETAILER SAID SALES FOR THE SIX WEEKS AT STORES OPEN MORE THAN A YEAR WERE UP 18 THE MONTH OF JUNE AND THE CURRENT YEAR ARE ONE WEEK LONGER THAN LAST YEAR AN EVENT THAT OCCURS ONCE EVERY SIX YEARS BASED ON THE COMPANY'S RETAIL CALENDAR 9307070099 930707 TOYOTA RAISING US PRICES TOKYO TOYOTA MOTOR CORP SAID IT WILL RAISE PRICES IN THE US ON ITS NEWMODEL CARS AND TRUCKS THIS FALL TO ACCOUNT FOR THE YEN'S RECENT APPRECIATION AGAINST THE DOLLAR THE COMPANY DIDN'T SPECIFY THE AMOUNT OF THE INCREASE BUT ONE JAPANESE NEWSPAPER REPORTED THAT IT IS EXPECTED TO BE AN AVERAGE OF 3 TOYOTA ALSO LOWERED THE NUMBER OF VEHICLES IT EXPECTS TO SELL IN JAPAN IN 1993 TO 22 MILLION FROM 232 MILLION CITING THE COUNTRY'S ECONOMIC SLUMP TOYOTA SAID THE REVISED PROJECTION REPRESENTS A 13 DECLINE OR ABOUT 29000 VEHICLES IN SALES FROM 1992 9307070098 930707 TECHNOLOGY ELECTRONIC GEAR SALES ROSE IN FIRST QUARTER BUT AT A SLOWER PACE SANTA CLARA CALIF SALES OF ELECTRONIC PRODUCTS AND SERVICES PRODUCED IN THE US EXPANDED IN THE FIRST QUARTER OF 1993 BUT THE RATE OF GROWTH SLOWED ACCORDING TO A TRADE GROUP THE AMERICAN ELECTRONICS ASSOCIATION SAID GLOBAL SALES IN THE FIRST QUARTER INCREASED 48 TO 814 BILLION UP FROM 777 BILLION A YEAR AGO HOWEVER IN THE YEAREARLIER QUARTER SALES GREW 64 FIRSTQUARTER ORDERS FOR ELECTRONIC PRODUCTS AND SERVICES ROSE 49 TO 804 BILLION FROM 768 BILLION A YEAR EARLIER THE SOCALLED BOOKTOBILL RATIO FOR THE QUARTER WAS 099 THE SAME AS REPORTED FOR THE FIRST QUARTER OF 1992 THE RATIO MEANS THAT FOR EVERY 100 OF PRODUCTS SHIPPED THE INDUSTRY RECEIVED 99 OF NEW ORDERS A RATIO OF MORE THAN 10 INDICATES GROWING DEMAND COMPUTERS AND OFFICE EQUIPMENT ACCOUNTED FOR THE LARGEST SHARE OF GLOBAL SALES FOLLOWED BY ELECTRONIC COMPONENTS AND COMMUNICATIONS PRODUCTS THE AMERICAN ELECTRONICS ASSOCIATION WHICH REPRESENTS MORE THAN 3000 COMPANIES SAID ITS ESTIMATES AREN'T SEASONALLY ADJUSTED AND ARE SUBJECT TO REVISION 9307070097 930707 WHO'S NEWS BELLSOUTH CORP TAPS MAULDIN REDDERSEN FOR NEW POSITIONS ATLANTA BELLSOUTH CORP SIGNALING MORE AGGRESSIVE EFFORTS TO EXPAND ITS BUSINESS NAMED EARLE MAULDIN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AND WILLIAM F REDDERSEN TO THE NEW POST OF SENIOR VICE PRESIDENTBROADBAND STRATEGIES MR MAULDIN 52 YEARS OLD WILL HAVE RESPONSIBILITIES FOR CHARTING THE COMPANY'S FINANCIAL DIRECTION AS TELECOMMUNICATIONS TECHNOLOGIES ADVANCE AND COMPETITION GROWS HE SAID BEING A LOWCOST COMPANY IS IMPORTANT FOR US BUT THE COMPANY WILL ALSO WORK ON EXPANDING ITS REVENUES AND CHANGING THE REGULATORY ENVIRONMENT MR REDDERSEN 45 HAS BEEN PRESIDENT OF BELLSOUTH BUSINESS SYSTEMS WITHIN THE COMPANY'S BELLSOUTH TELECOMMUNICATIONS UNIT EXPERIENCE THAT FITS WELL WITH BELLSOUTH'S VIEW OF BROADBAND OR HIGHCAPACITY SERVICES ALTHOUGH BROADBAND NETWORKS GENERALLY ARE SEEN AS A WAY TO DELIVER MOVIES OR CABLE TELEVISION PROGRAMMING TO RESIDENTIAL CUSTOMERS BELLSOUTH INITIALLY HAS TARGETED BUSINESS APPLICATIONS IN ADDITION MARK L FIEDLER 37 WAS ELECTED VICE PRESIDENT FOR CORPORATE DEVELOPMENT AND STAN HAMM 50 WHO HAS BEEN PRESIDENT OF THE BELLSOUTH CELLULAR UNIT WAS TAPPED TO SUCCEED MR MAULDIN AS PRESIDENT OF THE MOBILE SYSTEMS GROUP MR MAULDIN WHO REPORTS TO BELLSOUTH VICE CHAIRMAN WILLIAM O MCCOY SUCCEEDS HARVEY R HOLDING 58 WHO SAID LAST NOVEMBER THAT HE PLANNED TO RETIRE THIS SUMMER AS VICE CHAIRMAN OF THE BOARD FOR FINANCE AND ADMINISTRATION THE APPOINTMENTS ANNOUNCED YESTERDAY WENT INTO EFFECT JULY 1 9307070096 930707 HEILIGMEYERS SALES ROSE IN JUNE RICHMOND VA HEILIGMEYERS CO A HOME FURNISHINGS RETAILER REPORTED ITS SALES ROSE 33 IN JUNE TO 57 MILLION COMPARED WITH 429 MILLION A YEAR EARLIER SALES IN STORES OPEN A YEAR OR MORE ROSE 16 SALES FOR THE FOURMONTH PERIOD ENDED IN JUNE ROSE 26 TO 2131 MILLION FROM 169 MILLION A YEAR EARLIER SALES IN STORES OPEN IN THE YEAREARLIER PERIOD INCREASED 11 HEILIGMEYERS HAS 454 STORES IN 16 STATES 9307070095 930707 THE VAMPIRE SUMMIT BY KENICHI OHMAE TOKYO THE FOLKLORE OF MANY CULTURES IS RICH IN STORIES OF CREATURES WHO ALTHOUGH TECHNICALLY DEAD MAINTAIN AT LEAST SOME OF THE OUTWARD APPEARANCES OF LIFE BY STEALING THE LIFEBLOOD FROM OTHERS AS THE LEADERS OF THE G7 INDUSTRIAL NATIONS GATHER HERE THEY WILL CONTRIBUTE BARELY ENOUGH NOURISHMENT TO FORESTALL THE INEVITABLE ADMISSION THAT THEIR SUMMIT HAS BECOME JUST SUCH A CREATURE THIS IS MOST UNFORTUNATE NOT BECAUSE MAINTAINING APPEARANCES IS IN ITSELF DESTRUCTIVE BUT BECAUSE IT DEFLECTS VITAL ENERGIES FROM THE CONVERSATIONS THAT REALLY SHOULD BE TAKING PLACE IN ITS PRESENT FORM THE G7 SUMMIT IS AN EMPTY RELIC OF BOTH THE COLD WAR AND THE ENERGY CRISES OF THE 1970S THE LEADING INDUSTRIAL NATIONS THEN BADLY NEEDED A FORUM IN WHICH TO DISPLAY PERHAPS EVEN TO FORGE SOME UNITY OF ECONOMIC INTEREST AT ITS BEST THIS FORUM ALLOWED FOR SERIOUS DIALOGUE AND EVEN MORE SERIOUS BARGAINING AMONG DOMESTICALLY POWERFUL LEADERS ANIMATED BY A VISION OF THE KIND OF WORLD THEY WERE TRYING TO CREATE IN THE FACE OF EXTERNAL ADVERSITY THE SITUATION TODAY IS ALTOGETHER DIFFERENT NO EXTERNAL ENEMY IMMEDIATELY THREATENS AND NONE OF THE LEADERS IS IN A POLITICALLY COMMANDING POSITION AT HOME IN FACT SINCE THE DISSOLUTION OF THE JAPANESE DIET ON JUNE 18 JAPAN'S PRIME MINISTER KIICHI MIYAZAWA IS NOT EVEN A DIETMAN HE AND HIS CABINET CONSTITUTE LITERALLY A PHANTOM GOVERNMENT THE PRACTICAL CONSEQUENCE IS TO DRAIN THE SUMMIT OF ITS ORIGINAL REASON FOR EXISTENCE AND IN ITS PLACE TO CREATE AN EMPTY STAGE FOR MEDIA POSTURING DIRECTED ALMOST ENTIRELY AT DOMESTIC CONSTITUENCIES WEAKENED LEADERS PLAYING ONLY TO SUCH AUDIENCES CANNOT BEGIN TO TACKLE THE WORLD'S DIFFICULT SOCIAL AND ECONOMIC PROBLEMS THEY CANNOT IMPOSE BENEFICIAL ORDER ON THE MESSY SQUABBLES AMONG NATIONS THEY CANNOT WORK TO DEFINE LET ALONE TO CREATE THE SHAPE OF A NEW WORLD ORDER THEY CANNOT EVEN MAKE NEARTERM CONCESSIONS TO ACHIEVE LONGTERM GOALS ALL THEY CAN DO IS FOLLOW THE UNIMAGINATIVE SCRIPTS LAID OUT IN ADVANCE BY THEIR RISKAVERSE SHERPAS THOSE MIRACLES OF BUREAUCRATIC PETTIFOGGERY WHOSE ONLY TRUE GOAL IS TO MAKE SURE THE LEADERS AVOID SAYING OR DOING ANYTHING THAT MIGHT PROMPT UNFAVORABLE COMMENT BACK HOME TAKE CLINTON'S CALL FOR AN INTERNATIONAL JOB SUMMIT WHAT YOU SEE IS A PRACTICED SMILE FOR THE CAMERAS BUT WHAT YOU HEAR IS JUST WHISTLING PAST THE GRAVEYARD THE REAL TRAGEDY OF THE G7 SUMMIT HOWEVER IS NOT ITS POSTURING FOR THE MEDIA BUT ITS SYSTEMATIC AVOIDANCE OF SUBSTANTIVE DISCUSSION ON SUCH PRESSING ISSUES AS HOW THE US AND JAPAN CAN BEST COOPERATE TO HELP EUROPE WITH ITS SOARING UNEMPLOYMENT AND ITS CRUSHING BURDEN OF SOCIAL COSTS GET BACK TO ECONOMIC HEALTH THE PROBLEM IS TO DO SO WITHOUT UNLEASHING EITHER A DANGEROUS WAVE OF PROTECTIONISM WHICH WILL HURT EVERYONE'S POCKET OR AN EVEN MORE DANGEROUS WAVE OF SOCIAL UNREST WHICH MAY THREATEN POLITICAL STABILITY AS WELL CURRENT UNEMPLOYMENT RATES IN THE EC COUNTRIES FOR EXAMPLE WHICH HOVER AROUND 10 WOULD QUICKLY JUMP TO 30 OR MORE IF GOVERNMENTS DO NOT CUSHION THE NEED FOR RESTRUCTURING IF THE NECESSARY ADJUSTMENTS FOR OPERATING IN A TRUE SINGLE MARKET ARE MADE ALL AT ONCE OR IF BOTH THE EFFECTS OF THE IRON CURTAIN'S DISAPPEARANCE ARE NOT CAREFULLY MANAGED THE DANGERS ARE TANGIBLE AND THE PRECEDENTS TROUBLING NO MODERN POLITICAL SYSTEM AND NO MODERN SOCIAL ORDER HAVE EVER ABSORBED SUCH DISRUPTIONS PEACEFULLY JAPAN THEREFORE SHOULD NOT TAKE ADVANTAGE OF THE CURRENT WEAKNESS IN EUROPE BY LEVERAGING ITS STRENGTH IN MANUFACTURING NOR SHOULD THE US TAKE ADVANTAGE OF ITS STRENGTH IN SERVICES BOTH NEED EUROPE HEALTHY NOT DEFEATED HOW TO DEFINE THE POLITICAL SYSTEM BEST SUITED TO AN ENVIRONMENT IN WHICH THE REAL ENEMY OF BOTH CITIZENS AND CONSUMERS IS NOT AN EXPANSIONIST SOVIET EMPIRE BUT A COMBINATION OF OFFICIAL ILLEGALITY THAT BRINGS ALL POLITICAL AUTHORITY INTO DISREPUTE AND SUCCESS IN THE GLOBAL MARKETPLACE THAT DOES NOT ENSURE AN ENHANCED QUALITY OF LIFE POSTWAR ITALY HAS BUILT A STRONG INDUSTRIAL BASE BUT AT A PROHIBITIVE COST IN POLITICAL CORRUPTION POSTWAR AMERICA HAS CREATED A VIBRANT OPEN ECONOMY BUT IT HAS TACITLY ACCEPTED A LESS AND LESS EVEN DISTRIBUTION OF THAT ECONOMY'S BENEFITS AMONG ITS PEOPLE POSTWAR JAPAN HAS ACHIEVED A RELATIVELY FLAT DISTRIBUTION OF INCOME BUT ITS PEOPLE HAVE NOT BEEN ABLE TO TRANSLATE THAT EQUALITY OF MEANS INTO THE STANDARDS OF LIVING TO WHICH THEY ASPIRE TO MOST OF THE REST OF THE WORLD THE PROBLEMS THESE SOCIETIES FACE ARE OF COURSE THE SORTS OF PROBLEMS THEY WOULD LOVE TO HAVE BUT THAT DOES NOT MAKE THEM ANY LESS PRESSING THE SOCIAL TENSIONS AND THE POLITICAL GRIDLOCK THAT NOW AFFLICT THE INDUSTRIALIZED WORLD ARE SO DEEPSEATED AND ENDEMIC THAT FAIRMINDED OBSERVERS CANNOT BUT CONCLUDE THAT THE GUIDING PRINCIPLES ON WHICH THOSE SOCIETIES REST ARE THEMSELVES IN QUESTION CONSIDER HOW TO DEAL WITH THE REALITIES OF AN INTERLINKED GLOBAL ECONOMY IN WHICH THE CONSEQUENCES OF ECONOMIC ACTIONS AND DECISIONS KNOW NO BORDERS BUT IN WHICH THE ULTIMATE DECISIONMAKING AUTHORITY RESTS WITH VOTERS SOMETIMES QUITE SMALL GROUPS OF VOTERS IN SEPARATE NATIONSTATES WHO FOR EXAMPLE WOULD REALLY BE SURPRISED IF A VOCAL MINORITY OF FRENCH FARMERS WERE TO UNDERMINE THE WORLDWIDE BENEFITS OF A HEALTHY GATT SYSTEM WHEN THE APPARATUS OF POLITICAL CONTROL IS LOCAL AND THE RAMIFICATIONS OF ECONOMICPOLICY DECISIONS GLOBAL HOW CAN THE LEADERS ANSWERABLE TO SUCH FRAGMENTED CONSTITUENCIES WRESTLE WITH WHAT ARE IN EFFECT SYSTEMS PROBLEMS HOW TO SCALE BACK OR EVEN STOP THE INTERNATIONAL SALE OF ARMS WITHOUT CAUSING UNDUE ECONOMIC HARDSHIP TO HOMEBASED DEFENSE INDUSTRIES FROM A G7 PERSPECTIVE IT IS EASY TO UNDERESTIMATE HOW SERIOUS AND POTENTIALLY DESTABILIZING IT IS FOR DEVELOPING NATIONS WHEN THE PILLARS OF GLOBAL SECURITY THE PERMANENT MEMBERS OF THE UNITED NATION'S SECURITY COUNCIL ARE THEMSELVES THE WORLD'S LEADING MERCHANTS OF DEATH AS IN KABUKI DRAMA CONCESSIONS THAT NO ONE CAN MAKE ALONE CAN PERHAPS BE MADE IN A FACESAVING WAY TOGETHER HOW TO ESTABLISH GUIDELINES FOR ACCEPTABLE LEVELS AND FORMS OF PROTECTION FOR A COUNTRY'S TROUBLED INDUSTRIES IF SUCH PROTECTION IS NEEDED TO ENSURE POLITICAL STABILITY AND HOW TO CHART A WORKABLE ROUTE AND TIMETABLE FOR COUNTRIES TO FOLLOW IN HELPING THOSE INDUSTRIES MAKE THE TRANSITION TO A COMPETITIVE GLOBAL MARKETPLACE HOW BEST TO UNDERSTAND AND NURTURE THE SOCIAL INSTITUTIONAL INFRASTRUCTURAL AND DEMOGRAPHIC CONDITIONS THAT WILL ALLOW INDUSTRIAL SOCIETIES TO GENERATE WEALTH IN THE FUTURE IN AN ERA OF GROWING AFFLUENCE THE POLITICAL SYSTEMS OF THESE NATIONS WERE PROGRESSIVELY GEARED TO AND SHAPED BY THE TASKS OF EFFICIENT AND EQUITABLE DISTRIBUTION OF WEALTH THE CREATION OF WEALTH COULD BE LARGELY TAKEN FOR GRANTED IT CAN BE NO LONGER HOW TO HELP DEVELOPING NATIONS BECOME MORE FULLY INTEGRATED WITH THE GLOBAL ECONOMY WITHOUT CREATING SUCH BITTER INTERNAL ECONOMIC DIVISIONS THAT THESE SOCIETIES COME APART AT THE SEAMS POLITICALLY AS WELL AS DEMOGRAPHICALLY IF FOR EXAMPLE CHINA'S RUSH TOWARD A MARKET ECONOMY WIDENS THE GAP BETWEEN ITS RICH SOUTHERN PROVINCES AND THE REST OF THE COUNTRY THERE WILL BE AN UNSTOPPABLE MIGRATION INTO THOSE COASTAL REGIONS FROM THE POORER AREAS OF THE INTERIOR IF THAT HAPPENS THE URBAN CHAOS IT WILL PRODUCE AS IT ALREADY HAS IN COUNTRIES LIKE MEXICO AND BRAZIL WILL PROVE A SERIOUSLY DESTABILIZING FORCE FOR GENERATIONS TO COME HOW TO INCLUDE AT THE TABLE THE LEADERS OF THOSE NATIONS WHOSE SITUATION OR EXPERIENCE IS MOST RELEVANT TO THE SPECIFIC ISSUES UNDER CONSIDERATION IT USED TO BE THAT THE HEADS OF THE INDUSTRIAL SUPERPOWERS WERE THE ONLY RELEVANT DISCUSSION PARTNERS FOR EACH OTHER ON ALL ECONOMICSRELATED TOPICS BUT HOW TODAY CAN THERE BE MEANINGFUL TALK ABOUT THE IMPLICATIONS OF UNCHECKED POPULATION GROWTH WITHOUT THE ACTIVE PARTICIPATION OF INDIA CHINA INDONESIA AND BRAZIL OR ABOUT THE WORLD'S TROUBLED FINANCIAL SYSTEM WITHOUT HONG KONG AND SINGAPORE FOR EVERYONE'S SAKE THESE ARE THE KINDS OF QUESTIONS THAT THE G7 LEADERS SHOULD DISCUSS BUT THEY WON'T FEAR OF OPINION POLLS AND THE BACKSTAGE LABORS OF THE SHERPAS WILL SEE TO THAT IF HOWEVER INSTEAD OF THE USUAL BUREAUCRATIC STEWARDS OF DOMESTIC CONCERNS A SMALL INDEPENDENT GROUP OF INTERNATIONAL WISE MEN BEHOLDEN TO NO PARTICULAR GOVERNMENT AND ALIGNED WITH THE INTERESTS OF ECONOMIC GROWTH AROUND THE WORLD AND NOT JUST AMONG THE G7 NATIONS WERE TO FRAME THE TALKS THEY MIGHT GENUINELY BE WORTH HAVING THERE COULD BE CONVERSATIONS LEADING NOT TO MEDIADRIVEN COMMUNIQUES BUT TO HONEST OPENENDED EXCHANGES AMONG LEADERS ON THE UNDERLYING ISSUES THAT WILL DEFINE THE SHAPE OF THE WORLD THEY AND THEIR PEOPLE ALL PEOPLE WILL INHABIT AT A VAMPIRE SUMMIT THIS WILL NEVER HAPPEN IT IS TIME THEN TO DRIVE A STAKE THROUGH ITS HEART MR OHMAE IS A PARTNER IN THE JAPAN OFFICE OF MCKINSEY & CO 9307070094 930707 OTC FOCUS NASDAQ INDEX FALLS AS SMALLSTOCK GAINS ARE CHECKED BY SELLING IN BIG CONCERNS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SMALL STOCKS POSTED GAINS BUT SELLING OF SHARES OF LARGE COMPANIES DRAGGED DOWN THE OVERTHECOUNTER MARKET THE NASDAQ COMPOSITE INDEX DROPPED 227 OR 032 TO 70222 DECLINING ISSUES OUTNUMBERED ADVANCERS 1450 TO 1306 ON TOTAL VOLUME OF 1994 MILLION SHARES UP FROM FRIDAY'S 1825 MILLION SMALLER STOCKS FARED BETTER THAN THE BIG ISSUES AS SHOWN BY THE NASDAQ 100 INDEX A MEASUREMENT OF THE LARGEST NONFINANCIAL ISSUES WHICH TUMBLED 684 OR 094 OR 72159 THE MARKET LOOKS WEAKER THAN IT ACTUALLY IS SAID GEORGE R MOORIN VICE PRESIDENT OF OTC TRADING AT JJB HILLIARD WL LYONS IN LOUISVILLE KY THE HIGHER CAP STOCKS ARE MOSTLY DOWN WHICH MAKES THE MARKET COME DOWN BUT SMALL STOCKS AREN'T UNDER QUITE THE SAME PRESSURE THE BIG ONES ARE UNDER MR MOORIN SAID FALLING BOND PRICES TRIGGERED BY INFLATIONARY CONCERNS SPARKED THE SELLING BUT TRADERS SAID THE SLUMP WON'T LAST FOR LONG INVESTORS ARE GOING TO COME BACK SAID ROBERT O'TOOLE HEAD OF OTC TRADING AT SHEARSON LEHMAN BROTHERS INTEREST RATES ARE STILL SO LOW THAT STOCKS ARE THE ONLY GAME IN TOWN BANK STOCKS WERE THE ONLY BIG GAINERS THE NASDAQ BANK INDEX JUMPED 187 OR 031 TO 61272 ONE OF THE DAY'S MOST ACTIVE STOCKS CRAGIN FINANCIAL SURGED 9 7/8 OR 39 TO 35 ON 13 MILLION SHARES MORE THAN NINE TIMES ITS NORMAL VOLUME AMSTERDAM'S ABN AMRO HOLDING NV SAID THAT IT INTENDS TO ACQUIRE CRAGIN FINANCIAL BASED IN CHICAGO AGREEMENT HAS BEEN REACHED WITH THE BOARD OF CRAGIN AND A NUMBER OF IMPORTANT MINORITY SHAREHOLDERS ABN AMRO SAID ABN AMRO IS OFFERING 38 A SHARE VALUING THE TRANSACTION AT 540 MILLION ELMWOOD BANCORP LEAPED 5 TO 19 KEYSTONE FINANCIAL BASED IN HARRISBURG PA WHICH DROPPED 1 7/8 TO 29 1/4 SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE ALL THE STOCK OUTSTANDING OF ELMWOOD BASED IN MEDIA PA KEYSTONE SAID IT WILL ISSUE 074 OF ITS COMMON SHARES FOR EACH OF ELMWOOD'S 1460000 COMMON SHARES OUTSTANDING BASED ON THE CLOSING PRICE OF KEYSTONE COMMON SHARES ON THURSDAY 31 1/2 THE COMPANIES VALUED THE TRANSACTION AT ABOUT 34 MILLION THE ACQUISITION IS EXPECTED TO BE COMPLETED IN THE FIRST QUARTER OF 1994 ENCLEAN MORE THAN DOUBLED RISING 3 7/8 TO 6 3/8 RUST INTERNATIONAL AND ENCLEAN SAID THEY HAVE SIGNED A DEFINITIVE AGREEMENT UNDER WHICH A RUST SUBSIDIARY HAS AGREED TO BEGIN A TENDER OFFER FOR ALL COMMON SHARES OUTSTANDING OF ENCLEAN AT 675 A SHARE ENCLEAN IS A BELLAIRE TEXAS PROVIDER OF INDUSTRIAL AND ENVIRONMENTAL CLEANING SERVICES ADOBE SYSTEMS DROPPED 3 3/8 TO 55 3/4 SOUNDVIEW FINANCIAL GROUP DOWNGRADED ITS SHORTTERM INVESTMENT RATING ON ADOBE TO SELL FROM HOLD AND TRIMMED EARNINGS ESTIMATE FOR FISCAL 1993 ENDING IN NOVEMBER BY SEVEN CENTS A SHARE TO 248 SOUNDVIEW MAINTAINS A LONGTERM HOLD RATING ON THE STOCK SOUNDVIEW EXPECTS SLOW ACCEPTANCE FOR ADOBE'S NEW ACROBAT DOCUMENTEXCHANGE SOFTWARE AND PRICE COMPETITION ON ACROBAT TO ACCELERATE INTO 1994 FOR FISCAL 1992 ADOBE REPORTED EARNINGS OF 187 A SHARE STAPLES FELL 2 1/8 TO 30 ALEX BROWN & SONS ANALYST CHRISTOPHER E VROOM CUT HIS RATING TO A BUY FROM A STRONG BUY MR VROOM SAID THERE HAS BEEN A LITTLE SLIPPAGE IN STAPLES' SCHEDULE FOR NEW STORE OPENINGS HE LOWERED THE COMPANY'S FISCAL SECONDQUARTER EARNINGS ESTIMATE ENDING IN JULY TO THREE CENTS A SHARE FROM FOUR CENTS WHICH COMPARES WITH EARNINGS OF TWO CENTS A SHARE IN THE FISCAL 1993 SECOND QUARTER NEW IMAGE INDUSTRIES PLUNGED 5 TO 14 1/4 THE CANOGA PARK CALIF COMPANY SAID IT EXPECTS TO REPORT EARNINGS BETWEEN 125 AND 130 A SHARE FOR THE FISCAL YEAR ENDED JUNE 30 COMPARED WITH A LOSS OF 26 CENTS A SHARE IN FISCAL 1992 NEW IMAGE INDUSTRIES DESIGNS COMPUTER IMAGING PRODUCTS SCICLONE PHARMACEUTICALS ROSE 5/8 TO 17 THE SAN MATEO CALIF COMPANY SAID ITS JAPANESE LICENSEE SCHERINGPLOUGH KK HAS RECEIVED THE NECESSARY GOVERNMENT AND INSTITUTIONAL APPROVALS TO INITIATE HUMAN TESTING OF THYMOSIN ALPHA 1 APPROVAL FROM THE US FOOD AND DRUG ADMINISTRATION TO EXPORT THE DRUG FOR CLINICAL TRIAL USE IN JAPAN ALSO HAS BEEN GRANTED AND CLINICAL TESTING THERE WILL BEGIN INTENDED INDICATIONS FOR THE CLINICAL STUDY INCLUDE CHRONIC HEPATITIS B AND C ALLIED GROUP ROSE 1/4 TO 25 3/4 THE DES MOINES IOWA INSURANCE HOLDING COMPANY SAID IT EXPECTS TO REPORT SECONDQUARTER EARNINGS OF 57 CENTS TO 64 CENTS A DILUTED SHARE BEFORE GAINS THAT COMPARES WITH 42 CENTS A DILUTED SHARE BEFORE GAINS A YEAR EARLIER FOR THE SAME PERIOD AFTER GAINS ALLIED GROUP SAID IT EXPECTS TO REPORT EARNINGS OF 58 CENTS TO 65 CENTS A SHARE FOR ITS SECOND QUARTER COMPARED WITH 43 CENTS A SHARE A YEAR BEFORE 9307070093 930707 BUSINESS BRIEF SEQUENT COMPUTER SYSTEMS INC COMPANY EXPECTS TO SHOW BREAKEVEN SECOND QUARTER SEQUENT COMPUTER SYSTEMS INC SAID IT EXPECTS TO REPORT SECONDQUARTER RESULTS THAT ARE WELL BELOW ANALYSTS' EXPECTATIONS THE BEAVERTON ORE COMPUTER MAKER SAID IT EXPECTS TO REPORT THAT EARNINGS FOR THE SECOND QUARTER WERE ROUGHLY BREAKEVEN 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 SEQUENT HAS 294 MILLION SHARES OUTSTANDING IN THE 1992 SECOND QUARTER SEQUENT HAD A PROFIT OF 3 MILLION OR 12 CENTS A SHARE ON REVENUE OF 722 MILLION SEQUENT ATTRIBUTED THE RESULTS TO SEVERAL TRANSITIONS IN ITS PRODUCT MIX IN ADDITION THE COMPANY SAID SOME CUSTOMERS MAY HAVE DELAYED PURCHASES IN ANTICIPATION OF A PLANNED NEW LINE BASED ON INTEL CORP'S PENTIUM MICROPROCESSOR THAT LINE OF PRODUCTS WILL BEGIN SHIPPING IN VOLUME IN THE CURRENT QUARTER THE ANNOUNCEMENT WAS MADE AFTER TRADING ENDED SEQUENT SHARES CLOSED AT 1675 DOWN 375 CENTS IN NATIONAL OVERTHECOUNTER TRADING 9307070092 930707 ECONOMY CLINTON TO NAME AIDE TO PROMOTE FREETRADE PACT NAFTA CZAR' WILL SPEARHEAD WHITE HOUSE CAMPAIGN IN FACE OF OPPOSITION BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON PLANS TO APPOINT A WHITE HOUSE COORDINATOR TO NAVIGATE THE NORTH AMERICAN FREE TRADE AGREEMENT THROUGH THE MINEFIELDS AHEAD ADMINISTRATION AIDES SAID THE NAFTA CZAR WOULD TAKE CHARGE OF A WHITE HOUSE PUSH IN AUGUST TO BUILD SUPPORT FOR THE PACT WHICH FACES SUBSTANTIAL OPPOSITION IN CONGRESS AS WELL AS A LEGAL CHALLENGE FROM A COURT RULING LAST WEEK ROBERT RUBIN CHAIRMAN OF THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL IS LEADING THE EFFORT TO FIND THE RIGHT PERSON AIDES ACKNOWLEDGED THAT MR RUBIN WAS CONSIDERED FOR THE JOB AT ONE POINT BUT US TRADE REPRESENTATIVE MICKEY KANTOR ARGUED THAT THE POST MUST BE A FULLTIME JOB THAT WOULD RULE OUT MR RUBIN WHO HAS MANY OTHER RESPONSIBILITIES THE WHITE HOUSE SEES THE JOB ACCORDING TO AIDES AS SIMILAR TO ROBERT BECKEL'S FUNCTION DURING THE CARTER ADMINISTRATION MR BECKEL A CARTER AIDE COORDINATED THE PASSAGE OF THE PANAMA CANAL TREATIES THROUGH A RELUCTANT CONGRESS PRESIDENT CLINTON WAS DEALT A SETBACK WHEN US DISTRICT JUDGE CHARLES RICHEY RULED THAT THE CLINTON ADMINISTRATION MUST FILE A STATEMENT ON THE AGREEMENT'S ENVIRONMENTAL IMPACT THE ADMINISTRATION LAST WEEK APPEALED THE DECISION AND ISN'T EXPECTED TO HAVE A HEARING DATE FOR AT LEAST A MONTH A SENIOR ADMINISTRATION OFFICIAL SAID THAT NO DECISION HAD BEEN MADE ON WHO WOULD GET THE JOB BUT ACKNOWLEDGED THE NEED FOR A COORDINATION POST AND SAID A HOST OF PEOPLE WERE BEING CONSIDERED AMONG THOSE MENTIONED BY THE WHITE HOUSE ARE JOHN SASSO THE MASSACHUSETTS POLITICAL STRATEGIST JIM JONES A FORMER OKLAHOMA CONGRESSMAN WHO IS ALSO THE PRESIDENT'S NOMINEE TO BE AMBASSADOR TO MEXICO ELI SEGAL A BUSINESSMAN AND THE DIRECTOR OF THE NATIONAL SERVICE OFFICE AND LONGSHOT TOM DONILON THE ASSISTANT SECRETARY FOR PUBLIC AFFAIRS AT THE STATE DEPARTMENT ONE AIDE DESCRIBED MR DONILON AS THE IDEAL CANDIDATE BECAUSE OF HIS VAST WASHINGTON CONNECTIONS BUT HE CONCEDED THAT SECRETARY OF STATE WARREN CHRISTOPHER WOULD HAVE TO BE PERSUADED TO RELINQUISH MR DONILON AN UNLIKELY SCENARIO THE DECISION TO PUSH FOR THE TROUBLED TRADE TREATY IS SEEN AS A MAJOR VICTORY FOR DAVID GERGEN THE WHITE HOUSE COUNSELOR AS WELL AS ITS OTHER BIG SUPPORTERS INTERNALLY CHIEF OF STAFF THOMAS MCLARTY AND MR RUBIN MR GERGEN IS SAID TO THINK THAT THE TRADE PACT OFFERS AN OPPORTUNITY FOR PRESIDENT CLINTON TO BUILD A STRONG LINK TO THE BUSINESS COMMUNITY WHILE POLITICALLY MOVING TOWARD THE CENTER HOWEVER CAPITOL HILL DEMOCRATS WHO OPPOSE THE TREATY MAINTAIN THAT THE PRESIDENT SHOULD USE LAST WEEK'S COURT CHALLENGE AS A REASON TO SLOW DOWN THE PROCESS RATHER THAN MAPPING PLANS TO SPEED IT UP THE BUSINESS COMMUNITY HAS COMPLAINED THAT THE LOBBYING EFFORT FOR THE ACCORD HAS BEEN WEAK SO FAR THE WHITE HOUSE IS DEBATING WHETHER TO ALSO APPOINT A COMMUNICATIONS POINT PERSON WHO WOULD HELP SELL THE ACCORD TO THE PUBLIC AN ISSUE THAT MR GERGEN HAS STRESSED RAHM EMANUEL FORMER WHITE HOUSE POLITICAL DIRECTOR HAS BEEN MENTIONED AS A POSSIBLE CANDIDATE TO HANDLE THE SELLING OF THE PROJECT ASRA Q NOMANI CONTRIBUTED TO THIS ARTICLE 9307070091 930707 INSIDER TRADING SPOTLIGHT FRIDAY WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED EQUAL TO 90 OR MORE OF SHARES SOLD SHOLDS OTHER CLASS OF STOCK XREFLECTS SHARES HELD INDIRECTLY LATE FILING BASE PERIOD IS LESS THAN 3 YEARS OOFFICER ZOTHER BOUGHT OR SOLD DURING THE LAST 12 WEEKS EXPRESSED AS A PERCENTAGE CHANGE OF ONLY THEIR HOLDINGS AT THE START OF THE PERIOD REFLECTS COMPANIES FOR WHICH FILINGS MADE LAST WEEK SHOWED SOME INSIDER ACTIVITY DURING THE LATEST 12 WEEKS EXCLUDED COMPANIES WITH TOTAL TRADES VALUED UNDER 75000 OPTIONRELATED SALES COMPANIES WITH FEWER THAN THREE BUYERS OR SELLERS OR FEWER BUYERS OR SELLERS THAN THE HISTORICAL AVERAGE FOR THE PERIOD 9307070090 930707 MARKETING & MEDIA TRIBUNE TO ACQUIRE COMPTON'S GROUP FROM BRITANNICA BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO TRIBUNE CO ESTABLISHED A HIGHPROFILE BEACHHEAD IN THE FASTGROWING FIELD OF MULTIMEDIA SOFTWARE WITH AN AGREEMENT TO ACQUIRE THE COMPTON'S MULTIMEDIA PUBLISHING GROUP UNIT OF ENCYCLOPAEDIA BRITANNICA INC FOR 57 MILLION THE ACQUISITION UNDERSCORES HOW TRIBUNE WHICH IS BESTKNOWN FOR ITS NEWSPAPER AND BROADCAST HOLDINGS IS SEEKING TO POSITION ITSELF IN ELECTRONIC AND INTERACTIVE SERVICES COMPTON'S WITH 140 EMPLOYEES PUBLISHES INTERACTIVE MULTIMEDIA SOFTWARE IN THE FORMAT KNOWN AS CDROM FOR THE CONSUMER AND EDUCATION MARKETS ITS OFFERINGS INCLUDE A BIGSELLING CDROM VERSION OF COMPTON'S ENCYCLOPEDIA AS WELL AS A PRINT EDITION CDROM IS A COMPACTDISK FORMAT THAT CAN BRING TEXT GRAPHICS AUDIO AND VIDEO TO A COMPUTER OR TV SCREEN TRIBUNE PUBLISHER OF THE CHICAGO TRIBUNE AND FIVE OTHER DAILY NEWSPAPERS SAID IT EXPECTS THAT THE SKILLS WE DEVELOP FOR CDROM WILL HAVE APPLICATIONS TO OTHER MEDIA OVER TIME THE PURCHASE IS ONE OF A NUMBER OF INVESTMENTS BY TRIBUNE IN ELECTRONIC MEDIA INCLUDING A SIGNIFICANT STAKE IN COMPUTER NETWORK AMERICA ONLINE INC THROUGH THAT STAKE TRIBUNE IS TESTING AN ELECTRONIC VERSION OF THE CHICAGO TRIBUNE I THINK TRIBUNE DESERVES A LOT OF CREDIT FOR THINKING ABOUT HOW TECHNOLOGY IS GOING TO CHANGE THE INFORMATION BUSINESS SAID PETER APPERT A MEDIA ANALYST FOR CJ LAWRENCE INC CLOSELY HELD ENCYCLOPAEDIA BRITANNICA BASED IN CHICAGO BOUGHT COMPTON'S IN 1961 THE 26VOLUME COMPTON'S ENCYCLOPEDIA WAS FIRST ISSUED ON CDROM IN 1990 BRITANNICA PUT THE UNIT ON THE SALE BLOCK SOME TIME BACK OTHER COMPANIES THAT ARE THOUGHT TO HAVE LOOKED THE UNIT OVER INCLUDE COMMERCIALPRINTING GIANT RR DONNELLEY & SONS CO PARAMOUNT COMMUNICATIONS INC AND WALT DISNEY CO IN THE YEAR ENDED JUNE 30 COMPTON'S HAD REVENUE OF ABOUT 28 MILLION TRIBUNE SAID THE UNIT'S REVENUE HAS GROWN AT AN ANNUAL RATE OF MORE THAN 50 OVER THE PAST THREE YEARS SEPARATELY TRIBUNE SAID IT WILL PAY 40 MILLION IN CASH AND STOCK TO ACQUIRE CLOSELY HELD CONTEMPORARY BOOKS INC A CHICAGO PUBLISHER OF NONFICTION AND EDUCATIONAL BOOKS BOTH TRANSACTIONS ARE EXPECTED TO CLOSE IN THE THIRD QUARTER TRIBUNE SAID ITS TRIBUNE NEWSPAPER CO UNIT WILL BE RENAMED TRIBUNE PUBLISHING CO TO REFLECT THE UNIT'S GROWING SCOPE MEG COX IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9307070089 930707 APPLE PLANNING TO DISMISS 16 OF WORK FORCE AS COMPUTER PRICES FALL SO DO PROFIT MARGINS REENGINEERING' SET BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL APPLE COMPUTER INC BLOODIED BY A COMPUTER PRICE WAR AND FALLING PROFIT MARGINS SAID IT WILL REDUCE ITS WORK FORCE BY 16 IN A BROAD REENGINEERING OF THE COMPANY THE CUPERTINO CALIF COMPANY IN PLANNING TO DISMISS 2500 OF ITS 16000 EMPLOYEES WORLDWIDE IS SEEKING TO REVITALIZE ITS EARNINGS IN THE FACE OF A FIERCE PRICE WAR THAT HAS WREAKED HAVOC WITH INDUSTRY PROFITS AND FORCED APPLE TO STREAMLINE ITS OPERATIONS THE STAFF CUTS WERE WIDELY ANTICIPATED ON WALL STREET APPLE'S STOCK SLIPPED 75 CENTS A SHARE TO 3775 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY THIS MONTH APPLE RELEASED FEW DETAILS OF ITS PLAN FOR THE DISMISSALS BEYOND SAYING THE CUTS WILL BE WORLDWIDE AND ACROSS THE BOARD BUT THE COMPANY SAID IT WILL PROVIDE MORE INFORMATION IN THE NEXT SEVERAL WEEKS THE MAJORITY OF THE LAYOFFS WILL BE MADE SOMETIME THIS MONTH THE COMPANY SAID THE CUTS ARE EXPECTED TO REACH DEEP SLICING RIGHT INTO THE HEART OF APPLE'S PRIDE RESEARCH AND DEVELOPMENT MORALE HAS BEEN HURT WITH MANY EMPLOYEES SAYING THEY FEAR FOR THEIR JOBS EVEN THOSE WHO ARE WORKING ON PROJECTS THAT REPRESENT KEYS TO APPLE'S FUTURE SUCH AS ITS POWERPC DIVISION THAT DIVISION IS DESIGNING APPLE'S NEXT GENERATION MACINTOSH COMPUTER THE LAYOFFS AREN'T THE FIRST FOR APPLE THE COMPUTER MAKER DISMISSED 1500 EMPLOYEES IN 1991 400 EMPLOYEES IN 1990 AND 1200 EMPLOYEES IN 1985 MOST OF THE CURRENT CUTS PROBABLY WILL COME FROM APPLE'S SALES FORCE INDUSTRY ANALYSTS SAID DURING THE PAST YEAR APPLE HAS MOVED AWAY FROM SELLING ONLY THROUGH ITS OWN DEALERS AND RESELLERS OPENING UP MORE SALES CHANNELS WITH DIRECT SALES BY MAIL RETAIL OUTLETS AND MASSMERCHANDISING STORES ALL OF WHICH HAVE RESULTED IN REDUNDANT SALES EFFORTS THE COMPANY'S EUROPEAN SALES FORCE IS ALSO A LIKELY TARGET FOR CUTS THE CUTS ARE EXPECTED TO REACH APPLE'S VAUNTED RESEARCH AND DEVELOPMENT DIVISION ALTHOUGH THEY'LL BE LIGHT COMPARED WITH CUTS EXPECTED IN OTHER APPLE DIVISIONS COMPANY MORALE HAS SUNK IN RECENT WEEKS AS NEWS OF THE IMPENDING LAYOFFS SPREAD ACCORDING TO SOME EMPLOYEES APPLE EXECUTIVES WILL SEE THEIR SALARIES SHRINK AS A RESULT OF THE REORGANIZATION AN APPLE SPOKESWOMAN SAID EXECUTIVES FROM THE VICE PRESIDENT LEVEL ON UP WILL IMMEDIATELY SEE THEIR SALARIES CUT 5 SHE SAID THE MEASURES ARE THE FIRST SIGNS OF HOW MICHAEL SPINDLER THE NEW CHIEF EXECUTIVE OFFICER HOPES TO LEAD APPLE IN A WORLD OF SLIM PROFIT MARGINS AND COMPETITION FROM COMPUTERS MADE WITH INTEL CORP COMPUTER CHIPS AND MICROSOFT CORP SOFTWARE WHICH INCREASINGLY LOOK AND ACT LIKE APPLE'S EASYTOUSE MACHINES MR SPINDLER WHO WAS NAMED TO THE POST LAST MONTH SUCCEEDING JOHN SCULLEY IS TRYING TO DRIVE APPLE'S PROFITS BY SELLING HIGH VOLUMES THROUGH REDUCED PRICES BUT SO FAR THE DROP IN PRICES HAS PUMMELLED PROFIT MARGINS RESULTING IN FISCAL THIRDQUARTER EARNINGS THAT APPLE HAS SAID WILL BE BELOW ANALYSTS' EXPECTATIONS APPLE IS ALSO TRYING TO DIFFERENTIATE ITS MACHINES FROM COMPETITORS' BY DEVELOPING INNOVATIVE AND SEXY NEW FEATURES FOR THEM FOR EXAMPLE APPLE HAS DEVELOPED A PROTOTYPE OF ITS MACINTOSH COMPUTER ON WHICH TELEVISION BROADCASTS CAN BE VIEWED THE COMPUTER WITH ITS BLACK CASE LOOKS SOMEWHAT LIKE A TELEVISION SET BUT ALSO HAS A CDROM DRIVE WHICH ALLOWS IT TO PLAY SOUNDS AND COLOR GRAPHICS ANDREW NEFF AN ANALYST WITH BEAR STEARNS & CO SAID APPLE STILL MUST SAY HOW IT WILL MANAGE LOWER PRICES WHILE INCREASING PROFITS 9307070088 930707 BUSINESS BRIEF FERRUZZI FINANZIARIA SPA CERTIFICATION OF ACCOUNTS MAY BE REVOKED BY AUDITORS INTERNATIONAL AUDITORS PRICE WATERHOUSE INTEND TO REVOKE THEIR CERTIFICATION OF THE 1992 ACCOUNTS OF MILAN'S FERRUZZI FINANZIARIA SPA AND ITS SUBSIDIARY MONTEDISON SPA THE HEAD OF ITALY'S STOCK MARKET REGULATORY AGENCY SAID THE 1992 ACCOUNTS OF THE HEAVILY INDEBTED AGROINDUSTRIAL AND ENERGY CONGLOMERATE WERE APPROVED AT ITS SHAREHOLDERS MEETING JUNE 30 EVEN AFTER A SURPRISE RESTATEMENT OF LOSSES AND OTHER ITEMS SEVERAL DAYS EARLIER SPEAKING TO A CHAMBER OF DEPUTIES FINANCE COMMITTEE IN ROME ENZO BERLANDA THE HEAD OF CONSOB THE STOCK MARKET REGULATOR SAID THAT PRICE WATERHOUSE COULD CARRY OUT ANOTHER CERTIFICATION OF THE GROUP'S ACCOUNTS ONCE ADDITIONAL DOCUMENTS ARE MADE AVAILABLE FERRUZZI WHICH HAD MORE THAN 15 TRILLION LIRE 97 BILLION IN NET DEBTS AS OF 1992 IS UNDERGOING A RESTRUCTURING IN THE HANDS OF ITS CREDITOR BANKS WHO HAVE APPOINTED NEW MANAGERS AND TAKEN OPERATIONAL CONTROL FROM THE FERRUZZI FAMILY 9307070087 930707 TECHNOLOGY BORLAND LOTUS AGREE ON PACT SCOTTS VALLEY CALIF BORLAND INTERNATIONAL INC SAID IT AGREED TO WORK WITH LOTUS DEVELOPMENT CORP TO INTEGRATE BORLAND'S FUTURE QUATTRO PRO FOR WINDOWS SOFTWARE WITH LOTUS NOTES BORLAND IS THE THIRD MAJOR SOFTWARE MAKER AFTER MICROSOFT CORP AND WORDPERFECT CORP TO ENDORSE LOTUS NOTES WHICH IS A SOFTWARE PROGRAM DESIGNED FOR USE BY PEOPLE WORKING TOGETHER AS A TEAM BORLAND SAID QUATTRO PRO USERS WILL BE ABLE TO STORE BORLAND SPREADSHEETS IN LOTUS NOTES RELEASE 3 DATABASES AND USE NOTES SERVICES SUCH AS DATABASE REPLICATION 9307070086 930707 AMBER'S STORES SALES DALLAS AMBER'S STORES INC SAID JUNE SALES INCREASED 67 TO 34 MILLION FROM 2 MILLION A YEAR AGO SAMESTORE SALES AT STORES OPEN AT LEAST A YEAR DECREASED 16 FROM A YEAR EARLIER THE ARTS AND CRAFTS RETAILER SAID TOTAL SALES FOR THE FIVE MONTHS ENDED LAST WEDNESDAY INCREASED 56 TO 178 MILLION FROM 114 MILLION SAMESTORE SALES DROPPED 16 9307070085 930707 POLITICS & POLICY DICK MOE ESCAPEE FROM POLITICS SEEKS TO AWAKEN AMERICA'S INTEREST IN PRESERVING HISTORIC HERITAGE BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON POLITICS IS A LITTLE LIKE ALCATRAZ ONCE YOU ENTER YOU RARELY ESCAPE RICHARD MOE IS AN AMAZING EXCEPTION HE GOT AWAY NOW HE'S THE NATION'S CHIEF HISTORIC PRESERVATIONIST HOPING TO MAKE THE TINY AND SOMEWHAT DELICATE PRESERVATION MOVEMENT A NEW AND POPULAR COMPANION TO THE STURDY ENVIRONMENTAL JUGGERNAUT FOR THE 57YEAROLD MR MOE IT'S A FAIRLY SERIOUS MIDCOURSE CORRECTION FOR MORE THAN 20 YEARS HE WAS THAT LEGENDARY BREED THE WASHINGTON INSIDER AFTER CUTTING HIS POLITICAL TEETH IN 1960 DRIVING A CAR FOR HIS HERO THE LATE HUBERT HUMPHREY HE WENT ON TO RUN MINNESOTA'S DEMOCRATICFARMERLABOR PARTY HE CAME TO WASHINGTON IN 1972 AS THENSEN WALTER MONDALE'S ADMINISTRATIVE ASSISTANT BECAME MR MONDALE'S VICE PRESIDENTIAL CHIEF OF STAFF AND HELPED RUN HIS LOSING 1984 PRESIDENTIAL CAMPAIGN HE'S BEEN MOVING AND SHAKING AS A HIGHLY VISIBLE WASHINGTON LAWYER EVER SINCE HE GAVE IT ALL UP LAST SUMMER BLAME IT ON THE CIVIL WAR MR MOE IS JUST OLD ENOUGH TO REMEMBER SEEING ONE OF THE LAST SURVIVORS OF THE CIVIL WAR IN CHURCH IN DULUTH MORE THAN 45 YEARS AGO THAT IMPRESSED HIM HE WAS IMPRESSED EVEN MORE WHEN HE SAW ALL THE OLD BATTLE FLAGS OF MINNESOTA'S TOUGHEST CIVIL WAR REGIMENT THE FIRST MINNESOTA VOLUNTEERS AT THE STATE CAPITOL IN ST PAUL THE REGIMENT MADE A GALLANT CHARGE AT THE BATTLE OF GETTYSBURG PLUGGING A HOLE IN THE UNION LINE AND SAVING THE DAY MORE THAN 80 OF THE MINNESOTANS WERE KILLED OR WOUNDED THAT BLOODY DAY HE WAS SO IMPRESSED HE WROTE A BOOK ABOUT THE REGIMENT CALLED THE LAST FULL MEASURE THAT WAS PUBLISHED EARLIER THIS YEAR IN RESEARCHING THE BOOK HE VISITED SEVERAL CIVIL WAR BATTLEFIELDS AND HE WAS APPALLED AT THE INTRUSION OF FASTFOOD OUTLETS AND TOURIST VIEWING TOWERS ON WHAT HE CONSIDERS CONSECRATED GROUND THERE'S JUNK EVERYWHERE HE COMPLAINS HE BECAME A BATTLEFIELD PRESERVATIONIST WHILE VISITING ANTIETAM A BATTLEFIELD ENDANGERED BY OVERDEVELOPMENT HE WAS ASKED BY A FRIEND IF HE MIGHT BE INTERESTED IN TAKING ON A LARGER ROLE THE 225000AYEAR PRESIDENCY OF THE NATIONAL TRUST FOR HISTORIC PRESERVATION A NONPROFIT ORGANIZATION CHARTERED BY CONGRESS IN 1949 HE AGREED THE NATIONAL TRUST HAS NEVER QUITE TAKEN HOLD IN A NATION THAT WORRIES A LOT MORE ABOUT TODAY THAN YESTERDAY AMONG OTHER ACTIVITIES IT RUNS 18 HISTORIC PROPERTIES MOSTLY LARGE MANSIONS BUT IT WOULD BE STRETCHING A POINT TO CALL ANY ONE OF THEM A NATIONAL SHRINE THE COUNTRY'S MOST FAMOUS HOUSES GEORGE WASHINGTON'S MOUNT VERNON THOMAS JEFFERSON'S MONTICELLO AND FRANKLIN ROOSEVELT'S HYDE PARK TEND TO BE SEPARATELY SOMETIMES PRIVATELY RUN MR MOE SEES HIMSELF AS A GRASSROOTS KIND OF PRESERVATIONIST AND HE IS MORE THAN WILLING TO TAKE ON THE NATIONAL TRUST'S FAINTLY ELITIST AND MUSTY IMAGE I'D LIKE TO DIVERSIFY THE COLLECTION HE SAYS WE'RE LOOKING AT A BLACK MIDWIFE'S HOUSE IN JACKSON MISS AS A NATIONAL TRUST PROPERTY WE'RE LOOKING TOO AT A BEAUTIFUL OLD WAREHOUSE IN LOCKPORT ILL THAT WAS USED TO BUILD THE ILLINOISMICHIGAN CANAL HE WOULD ALSO LIKE TO ACQUIRE AN OLD RANCH IN THE WEST AN ADOBE CHURCH IN THE SOUTHWEST AND A FARM IN THE MIDWEST I WANT A COLLECTION THAT REPRESENTS THE WHOLE AMERICAN EXPERIENCE EVEN BEFORE MR MOE ASSUMED THE PRESIDENCY THE TRUST HAD BEGUN PROGRAMS TO HELP SMALL TOWNS AND CITIES PRESERVE THEIR THREATENED DOWNTOWNS AND TO HELP REVITALIZE HISTORIC NEIGHBORHOODS FOR LOW AND MIDDLE INCOME RESIDENTS IT HAD ALSO WORKED WITH OTHER ORGANIZATIONS TO SAVE BOTH NEW YORK'S GRAND CENTRAL TERMINAL AND THE HISTORIC FRESNEL LENS IN THE DEVILS ISLAND LIGHTHOUSE IN WISCONSIN ITS MAGAZINE HISTORIC PRESERVATION TURNED TO SLICK PAPER SEVERAL YEARS AGO BUT UNTIL NOW THE TRUST HAD NEVER HAD SOMEONE IN CHARGE WHO KNEW WHERE TO FIND THE LEVERS OF POWER AND WASN'T AFRAID TO PULL THEM THE TIMING MR MOE BELIEVES IS SERENDIPITOUS AMERICANS HAVE BEEN TOLD FOR YEARS THAT THEY HAVE NO HISTORY AND SO THERE'S NOTHING TO PRESERVE HE SAYS BUT THAT'S NOT TRUE AND MORE AND MORE AMERICANS KNOW IT'S NOT TRUE AMERICANS ARE SEARCHING NOW FOR A CONNECTION WITH THEIR PAST HE CONCEDES THE PRESERVATIONISTS NEED TO KEEP IN MIND THAT NOT EVERY OLD BUILDING CRIES OUT FOR REHABILITATION THE CRITICS HAVE A VALID POINT THERE HE CONCEDES BUT HE SAYS IF AN OLD BUILDING CAN BE PUT TO A NEW USE AND IF IT CAN BE DONE ECONOMICALLY IT OUGHT TO BE DONE MOST OF THE TIME IT DOES MAKE ECONOMIC SENSE AND IT IS A FACT THAT COMMUNITIES LOOK BETTER WITH OLDER BUILDINGS AND NEIGHBORHOODS WE DON'T ALWAYS DO THINGS AS WELL THESE DAYS AS WE DID YEARS AGO MR MOE WORRIES ABOUT MALLS DRAINING ECONOMIC VITALITY FROM DOWNTOWNS ALL OVER AMERICA AND IT WAS HIS IDEA TO PUT THE WHOLE STATE OF VERMONT AT THE TOP OF THE NATIONAL TRUST'S BEST PUBLICRELATIONS GIMMICK ITS ANNUAL LIST OF THE NATION'S MOST ENDANGERED HISTORIC PLACES HE SAYS VERMONT IS BEING ATTACKED BY WHAT HE CALLS SPRAWLMART UNPLANNED AND UNCONTROLLED DEVELOPMENT ON THE PERIPHERY OF TOWNS AND SMALL CITIES BUT HE INSISTS HE DOESN'T WANT TO CLOSE DOWN EVERY SUBURBAN MALL HE JUST WANTS TO REMIND PEOPLE THAT THEY HAVE CHOICES MR MOE BELIEVES THE NATIONAL TRUST SHOULD BE FOCUSING MORE ON PRESERVING ENTIRE COMMUNITIES AND WORRYING LESS ABOUT INDIVIDUAL STRUCTURES WE NEED TO BE DEALING WITH PEOPLE WHERE THEY LIVE HE SAYS THAT'S WHY HE IS PARTICULARLY INTERESTED IN DEFEATING A FREEWAY IN SOUTH PASADENA CALIF THAT HE SAYS WOULD DESTROY 1000 HOMES AND 7000 TREES IN HISTORIC NEIGHBORHOODS PRESERVATIONISTS GENERALLY WELCOME MR MOE TO HIS NEW JOB WE'RE DELIGHTED SAYS NELLIE LONGSWORTH A WASHINGTON DC PRESERVATIONIST HE'S GOING TO KNOCK DOWN THAT WALL THAT WE'RE JUST A BUNCH OF RICH PEOPLE SAVING OLD HOUSES ACTUALLY RICH PEOPLE HAVE PUMPED A LOT OF MONEY INTO THE PRESERVATION MOVEMENT ESPECIALLY FROM 1978 TO 1986 WHEN THEY GOT TAX BREAKS FOR IT THE RESULT WAS 15 BILLION SHOVELED INTO 23000 LABORINTENSIVE PROJECTS BUT THE 1986 TAXREFORM LAW IN MR MOE'S WORDS EVISCERATED THE TAX BREAK AND MOST OF THE MONEY DISAPPEARED PRESIDENT CLINTON PROMISED DURING HIS CAMPAIGN TO RESTORE THE BREAK BUT DIDN'T INCLUDE IT IN HIS BUDGET BECAUSE TREASURY OFFICIALS ARGUE IT WOULD COST TOO MUCH TRUST OFFICIALS SAY IT'S GOING TO BE TOUGH TO OVERCOME TREASURY OPPOSITION BUT HOPE THEY CAN MUSTER ENOUGH GRASSROOTS SUPPORT TO PUSH LEGISLATION LATER THIS SUMMER SO IF MR MOE THINKS HE HAS ENTIRELY ESCAPED FROM HIS POLITICAL ALCATRAZ HE CAN GUESS AGAIN HIS NEW FRIENDS ARE COUNTING ON THE OLD RICHARD MOE THE ONE WITH ALL THOSE HIGHLEVEL POLITICAL CONNECTIONS TO MAKE A CAPITOL HILL CHARGE JUST LIKE THE FIRST MINNESOTA VOLUNTEERS MADE ON CEMETERY RIDGE WE NEED THAT TAX BREAK BADLY SAYS LAWRENCE WALKER EXECUTIVE DIRECTOR OF THE HISTORIC CHARLESTON FOUNDATION WE THINK DICK MOE HAS AS MUCH CHANCE OF GETTING IT FOR US AS ANYONE 9307070084 930707 WHAT'S NEWS WORLDWIDE FLOODING WORSENED ON THE UPPER MISSISSIPPI ENDANGERING MILES OF LEVEES FLOODRAVAGED TOWNS GOT MORE BAD NEWS AS OFFICIALS SAID THE RIVER STILL HASN'T CRESTED AND WARNED THAT MILES OF EARTHEN LEVEES ARE IN DANGER OF COLLAPSE EVACUATIONS WERE TAKING PLACE IN SMALL COMMUNITIES IN MISSOURI ILLINOIS AND IOWA AS THE MUDDY RIVER SWOLLEN BY ADDITIONAL DRENCHING RAINS KEPT RISING HUNDREDS OF NATIONAL GUARDSMEN WERE ON DUTY TO HELP WITH SANDBAGGING AND EVACUATIONS ALL COMMERCIAL AND RECREATIONAL TRAFFIC REMAINED INDEFINITELY TIED UP ON A 436MILE STRETCH FROM EAST DUBUQUE ILL AT THE SOUTHERN EDGE OF WISCONSIN TO JUST NORTH OF ST LOUIS NIGERIAN RIOTERS FOUGHT POLICE AND SOLDIERS AS TENS OF THOUSANDS OF PEOPLE SET FIRES AND BLOCKED ROADS IN LAGOS TO DEMAND AN END TO MILITARY DICTATORSHIP AT LEAST 11 PEOPLE WERE REPORTED KILLED THE SELFPROCLAIMED WINNER OF THE ANNULLED PRESIDENTIAL ELECTIONS ABIOLA URGED CITIZENS TO RESIST THE REGIME OF LONGTIME RULER BABANGIDA IRAQ MIGHT STOP COOPERATING WITH THE UN ON WEAPONS DESTRUCTION IF A DISPUTE OVER THE MONITORING OF IRAQI MISSILE SITES ISN'T RESOLVED THE SPEAKER OF THE IRAQI PARLIAMENT SAID A TEAM OF UN INSPECTORS LEFT IRAQ ON MONDAY TO PROTEST BAGHDAD'S REFUSAL TO PERMIT INSTALLATION OF SURVEILLANCE CAMERAS AT THE TWO FACILITIES DOZENS OF PEOPLE WERE KILLED AS SUPPORTERS OF SOUTH AFRICA'S TWO MAIN BLACK POLITICAL GROUPS CLASHED IN TWO TOWNSHIPS SOUTHEAST OF JOHANNESBURG NATIONWIDE MORE THAN 125 BLACKS HAVE BEEN KILLED SINCE FRIDAY WHEN BLACK AND WHITE NEGOTIATORS SET APRIL 27 1994 AS THE DATE FOR THE COUNTRY'S FIRST ELECTIONS TO INCLUDE BLACKS NATO HAS COMPLETED PLANS FOR SOME 80 WARPLANES FROM THE US FRANCE THE NETHERLANDS AND BRITAIN TO PROTECT UN FORCES DEPLOYED IN MUSLIM SAFE AREAS IN BOSNIA ALLIANCE SOURCES SAID IN BRUSSELS THE SOURCES SAID THE PLAN WOULD BE SENT TO UN HEADQUARTERS AND THAT THE OPERATION COULD START WITHIN TWO WEEKS OF UN APPROVAL SERB AND CROAT MILITARY CHIEFS SNUBBED THE NEW UN PEACEKEEPING COMMANDER IN BOSNIA BY FAILING TO ATTEND TALKS ON DEMILITARIZING SARAJEVO AND PROTECTING THE CITY AND FIVE OTHER MUSLIM SAFE AREAS HAITI'S SENATE LEADER SAID AN ACCORD TO RESTORE PRESIDENT ARISTIDE TO POWER MUST BE RATIFIED BY PARLIAMENT BEFORE THE TRANSITION CAN START THE STATEMENTS BY SEN DUPITON A SUPPORTER OF THE 1991 COUP THAT OUSTED ARISTIDE SIGNALED THAT LAWMAKERS MAY TRY TO DERAIL THE ACCORD SIGNED LAST WEEKEND BY ARISTIDE AND ARMY CHIEF CEDRAS GERMANY'S TOP PROSECUTOR LOST HIS JOB BECAUSE OF CRITICISM OVER HIS HANDLING OF ALLEGATIONS THAT A POLICE UNIT EXECUTED A SUSPECTED TERRORIST FEDERAL PROSECUTOR VON STAHL WAS ORDERED INTO TEMPORARY RETIREMENT THE JUSTICE MINISTRY SAID CITING THE UPROAR OVER THE JUNE 27 SHOOTING WHICH FORCED THE INTERIOR MINISTER TO QUIT SUNDAY MORE THAN 500 US TROOPS SEARCHED BUILDINGS IN SOUTHERN MOGADISHU IN HOPES OF DISARMING SUPPORTERS OF SOMALI CLAN LEADER AIDID TWELVE RIFLES AND ONE MACHINE GUN WERE SEIZED DURING THE UNSUPERVISED SEARCH OPERATION RUSSIA'S YELTSIN VOICED CONCERN AFTER HIS HOME PROVINCE THE SVERDLOVSK REGION DECLARED ITSELF A REPUBLIC AND OTHER RUSSIAN REGIONS THREATENED TO FOLLOW SUIT IN A BID TO BOOST THEIR STATUS LATE LAST WEEK OFFICIALS IN THE SVERDLOVSK REGION THREATENED TO STOP PAYING THEIR SHARE OF THE FEDERAL BUDGET UNLESS THEY WON RECOGNITION AS A REPUBLIC A UN POPULATION REPORT SAID A RECORD NUMBER OF PEOPLE AROUND THE WORLD ARE MIGRATING IN SEARCH OF A BETTER LIFE IN AN EXODUS THAT COULD BECOME THE HUMAN CRISIS OF OUR AGE ACCORDING TO THE REPORT MORE THAN 100 MILLION PEOPLE OR 2 OF THE WORLD'S POPULATION HAVE LEFT THEIR HOME COUNTRIES DOUBLE THE TOTAL IN 1989 GEORGIA'S LEADER DECLARED MARTIAL LAW IN THE BREAKAWAY ABKHAZIA REGION OF THE EXSOVIET REPUBLIC AS SEPARATIST REBELS PRESSED THEIR OFFENSIVE TOWARD THE REGIONAL CAPITAL ELSEWHERE IN THE FORMER SOVIET UNION AZERBAIJAN'S FORCES DUG IN AROUND THE STRATEGIC TOWN OF AGDAM WHERE ARMENIAN TROOPS HAVE BEEN ADVANCING DIED HARRISON SALISBURY 84 NEW YORK TIMES REPORTER AND EDITOR WHOSE COLD WAR DISPATCHES FROM THE SOVIET UNION WON THE PULITZER PRIZE MONDAY IN PROVIDENCE RI 9307070083 930707 WHO'S NEWS CAMBRIDGE BIOTECH CORP CAMBRIDGE BIOTECH CORP CAMBRIDGE MASS ROBERT B KAMMER 52 YEARS OLD WAS NAMED VICE PRESIDENT OF MEDICAL AFFAIRS DR KAMMER WAS FORMERLY DIRECTOR OF ANTIINFECTIVE CLINICAL RESEARCH AT SCHERINGPLOUGH CORP IN KENILWORTH NJ CAMBRIDGE BIOTECH DEVELOPS VACCINES ADJUVANTS AND DIAGNOSTICS FOR HUMANS AND ANIMALS 9307070082 930707 NYNEX STAKE IN GREEK STARTUP WHITE PLAINS NY NYNEX CORP SAID IT ACQUIRED A 20 STAKE INCLUDING A SIGNIFICANT OPERATIONAL ROLE IN A STARTUP CELLULAR TELEPHONE COMPANY IN GREECE TERMS WEREN'T DISCLOSED THE AGREEMENT WAS REACHED BETWEEN NYNEX NETWORK SYSTEMS A NYNEX UNIT AND STET HELLAS TELECOMMUNICATIONS SA WHOSE MAJORITY HOLDER IS STET INTERNATIONAL A UNIT OF ITALY'S STETSOCIETA FINANZIARIA TELEFONICA PER ANZIONE AS PART OF THE VENTURENYNEX'S LARGEST INTERNATIONAL CELLULAR BUSINESS UNDERTAKING SO FAR NYNEX WILL BE INVOLVED IN SALES MANAGEMENT AND CUSTOMER SERVICE THE CELLULAR SERVICE BEGAN JULY 1 9307070081 930707 KOHL'S POSTS HIGHER SALES MILWAUKEE KOHL'S CORP SAID JUNE SALES CLIMBED 24 TO 969 MILLION FROM 779 MILLION IN JUNE 1992 SALES AT STORES OPEN MORE THAN ONE YEAR INCREASED 14 THE MIDWESTERN RETAIL CHAIN SAID SALES FOR THE 22 WEEKS ENDED SATURDAY INCREASED 18 TO 430 MILLION FROM 3639 MILLION A YEAR AGO YEARTODATE SALES AT COMPARABLE STORES CLIMBED 84 KOHL'S OPERATES 82 STORES COMPARED WITH 76 AT THE SAME TIME LAST YEAR 9307070080 930707 REVIEW & OUTLOOK EDITORIAL WHO IS WILLIAM KENNEDY III THE WHITE HOUSE REPORT ON ITS TRAVEL OFFICE SCANDAL GERGENED OUT INTO THE VOID OF THE JULY 4 WEEKEND WOULD HAVE YOU BELIEVE THAT WILLIAM KENNEDY III IS JUST ONE OF FOUR WHITE HOUSE AIDES WHO WILL HAVE LETTERS OF REPRIMAND PUT IN THEIR PERSONNEL FILES IN FACT THE ASSOCIATE WHITE HOUSE COUNSEL IS ALSO THE FORMER MANAGING PARTNER OF LITTLE ROCK'S ROSE LAW FIRM WHICH IS TO SAY HILLARY RODHAM CLINTON'S NUMBER ONE LEGAL PARTNER FRIDAY'S LIMITED MODIFIED HANGOUT DOES ESTABLISH A BASIC FACTUAL RECORD BUT OBVIOUSLY PUTS A DEFENSIVE GLOSS ON THE TRAVEL OFFICE SHENANIGANS EVEN AT ITS MOST INNOCENT LEVEL IT'S A CHORTLECHUCKED PORTRAIT OF COURT INTRIGUE BUT THE TITILLATION SHOULD NOT OBSCURE THE CHILLING REALITY ONE OF THE FIRST LADY'S CLOSEST ASSOCIATES INVOKED THE WHITE HOUSE IN CALLING THE FBI TO INSTIGATE A CRIMINAL INVESTIGATION OF FUNCTIONARIES WHO'D INCURRED THE DISPLEASURE OF THE CLINTON INNER CIRCLE THE ORIGINS OF THIS DISPLEASURE SEEM TO LIE WITH CATHERINE CORNELIUS THE DISTANT CLINTON COUSIN APPOINTED TO HEAD THE TRAVEL OFFICE WHEN SEVEN EMPLOYEES WERE FIRED AND HARRY THOMASON THE FIRST COUPLE'S FILMMAKER CRONY WHO ALSO HAS A PECUNIARY INTEREST IN TRM AN AIR CHARTER FIRM INQUIRING AFTER WHITE HOUSE BUSINESS IT SOON SPREAD TO DEPUTY COMMUNICATIONS DIRECTOR JEFF ELLER WITH WHOM MS CORNELIUS HAD A PERSONAL RELATIONSHIP THE REPORT REPORTS AND TO DAVID WATKINS MAJORDOMO FOR PERSONNEL AND HIGH CHAMBERLAIN THOMAS MACK MCLARTY AND SOON THE WORD WAS UP TO THE QUEEN HERSELF MRS CLINTON WAS INQUIRING ABOUT THE TRAVEL OFFICE WITH DEPUTY WHITE HOUSE COUNSEL VINCENT FOSTER AND CHIEF OF STAFF MCLARTY RECEIVED UPDATES FROM MR WATKINS AND WAS CARBONED ON CRUCIAL MEMOS MR KENNEDY HOWEVER DID THE HEAVY LIFTING HE CALLED THE FBI BECAUSE THE REPORT STATES HE COULDN'T FIGURE OUT WHERE ELSE TO GET SOME AUDITING EXPERTISE WHEN THE FBI WAS SLOW TO RESPOND HE SAID HE'D CALL THE IRS INSTEAD A WEEK LATER IRS AUDITORS DID SHOW UP AT ULTRAIR THE TRM COMPETITOR USUALLY USED BY THE TRAVEL OFFICE AN IRS STATEMENT DENIES THERE WAS ANY CONTACT WITH THE WHITE HOUSE ACCORDING TO PRESS REPORTS THE AGENTS TOLD ULTRAIR OFFICIALS THEY'D READ ABOUT THE CONTROVERSY IN THE PRESS IN ANY EVENT AUDITORS FROM PEAT MARWICK WERE SOON SWARMING OVER THE TRAVEL OFFICE ACCOUNTS QUITE PLAUSIBLY FINDING THE RECORDS A MESS AND IDENTIFYING 18000 IN DISBURSEMENTS NOT ACCOUNTED FOR THE SEVEN EMPLOYEES WERE FIRED AND THE WHITE HOUSE ANNOUNCED THAT THE FBI HAD STARTED AN INVESTIGATION AND THE FBI'S SPOKESMAN WAS SUMMONED TO THE WHITE HOUSE FOR INQUIRIES ABOUT HIS IMPENDING PRESS STATEMENT AS A RESULT OF THEIR ROLES MR KENNEDY MR WATKINS MR ELLERS AND MS CORNELIUS WERE REPRIMANDED BUT NO FURTHER ACTION WAS TAKEN NOW THE TRAVEL OFFICE SNAFU WAS SO COMPLETE IT'S TEMPTING TO RING IT UP TO INEXPERIENCE UNHAPPILY IT SEEMS PART OF A LAW ENFORCEMENT PATTERN CENTERING ON THE ROSE CLIQUE REMEMBER WEBSTER HUBBELL THE FORMER ROSE PARTNER WHO WAS WHITE HOUSE LIAISON TO THE JUSTICE DEPARTMENT AND NOW ASSOCIATE ATTORNEY GENERAL HE SET UP THE MEETINGS THAT LED TO THE JUSTICE DEPARTMENT REVERSING ITS POSITION IN A CORRUPTION TRIAL OF A MEMBER OF CONGRESS MR FOSTER IS ALSO A FORMER ROSE PARTNER HIS DEFENSE OF MRS RODHAM CLINTON'S HEALTH CARE TASK FORCE DID SUCCEED IN GETTING HER DECLARED A FEDERAL EMPLOYEE BUT CUT SOME LEGAL CORNERS ALONG THE WAY WE'VE BEEN PARTICULARLY INTERESTED IN THE ROSE FIRM'S FOURPARTNER IMPLANT IN THE ADMINISTRATION BECAUSE OF ITS REPRESENTATION OF THE ARKANSAS FINANCIAL EMPIRE HEADED BY JACKSON STEPHENS OUR INTEREST IN THE STEPHENS COMPANIES IN TURN WAS PIQUED BECAUSE THEY HANDLED THE DEAL WHEN PROXIES FOR BCCI BOUGHT WASHINGTON'S FIRST AMERICAN BANK MR STEPHENS SAYS THERE HAS BEEN NO FURTHER CONTACT WITH THE BCCI FIGURES STEPHENS EXECUTIVES WERE AN IMPORTANT SOURCE OF CONTRIBUTIONS FOR THE CLINTON CAMPAIGN AND ITS PRIMARYSEASON FINANCES WERE SALVAGED BY A TIMELY LOAN FROM WORTHEN BANKING CORP MORE THAN 36 OWNED BY STEPHENS INTERESTS MR MCLARTY BY THE WAY WAS CHIEF EXECUTIVE OF ARKLA INC THE ARKANSAS LOUISIANA GAS CO THAT WAS THE ORIGINAL CORNERSTONE OF THE STEPHENS FORTUNE UNHAPPILY FOR STEPHENS ITS NEW INFLUENCE BROUGHT INCREASED SCRUTINY OF AN ONGOING CONCERN ABOUT WHETHER IT COMPLIES WITH LAWS MANDATING THE SEPARATION OF INVESTMENT BANKING AND COMMERCIAL BANKING THE FED FOUND ONE HOLDING IN THE FIRST NATIONAL BANK OF STUTTGART IN VIOLATION OF THE GLASSSTEAGALL ACT PAPERS PUTTING THE HOLDING AT 43 INSTEAD OF 60 WERE FILED ACCORDING TO JEFF GERTH'S REPORT IN THE NEW YORK TIMES BY THE ROSE FIRM'S WILLIAM KENNEDY III NOW WE WOULDN'T WANT TO MAKE TOO MUCH OF ALL THIS LAWYERS ARE PAID TO TAKE POSITIONS IN DEFENSE OF THEIR CLIENTS THE STEPHENS COMPANIES HAVE DONE A LOT OF ECONOMIC GOOD AND WE'RE NOT SURE WE AGREE WITH GLASSSTEAGALL IN THE FIRST PLACE ANY ADMINISTRATION WILL REACH BACK TO HOMESTATE ROOTS IN APPOINTING KEY PERSONNEL AND WE THINK CONFLICTOFINTEREST CONCERNS HAVE BEEN CARRIED TO THE POINT WHERE PEOPLE OF STATURE SHUN GOVERNMENT STILL THE EARLY INDICATIONS OF THE ROSE VIEW OF THE LAW ARE CERTAINLY DISCONCERTING DISPLAYING A LOT OF CORNERCUTTING AND CASUAL ABUSE OF POWER IF THESE ARE THE PEOPLE IN POSITION TO START FBI INVESTIGATIONS AND SWAY THE ADMINISTRATION OF JUSTICE THEY ARE GOING TO BEAR A LOT OF WATCHING 9307070079 930707 MARKETING & MEDIA JOURNAL'S HUNT IS NAMED TO NEW JOB IN WASHINGTON NEW YORK DOW JONES & CO NAMED ALBERT HUNT WASHINGTON BUREAU CHIEF OF THE WALL STREET JOURNAL FOR THE PAST 10 YEARS TO A NEW POSITION OF EXECUTIVE WASHINGTON EDITOR OF THE JOURNAL AND DOW JONES THE APPOINTMENT IS EFFECTIVE SEPT 15 MR HUNT 50 YEARS OLD ALSO WILL BECOME A WEEKLY COLUMNIST FOR THE JOURNAL HE WILL CONTINUE TO BE ACTIVELY INVOLVED IN HELPING SET DIRECTION AND PRIORITIES FOR WASHINGTON NEWS COVERAGE AND WILL CONTINUE TO DIRECT THE JOURNAL'S POLITICAL POLLS ALAN MURRAY 38 WAS NAMED WASHINGTON BUREAU CHIEF SUCCEEDING MR HUNT RESPONSIBLE FOR DAYTODAY COVERAGE FROM THE BUREAU AND FOR ITS STAFFING MR MURRAY JOINED THE JOURNAL IN 1983 TO COVER ECONOMICS SUCCEEDING HIM AS DEPUTY BUREAU CHIEF IS JILL ABRAMSON 39 WHO JOINED THE JOURNAL IN 1988 MS ABRAMSON YESTERDAY WAS AWARDED THE NATIONAL PRESS CLUB'S WASHINGTON CORRESPONDENCE AWARD FOR HER COVERAGE OF THE 1992 PRESIDENTIAL CAMPAIGN 9307070078 930707 CASH AMERICA INTERNATIONAL FORT WORTH TEXAS CASH AMERICA INTERNATIONAL INC SAID IT REACHED AGREEMENT ON A THREEYEAR UNSECURED CREDIT LINE OF AS MUCH AS 125 MILLION FROM A GROUP OF FIVE LENDERS LED BY NATIONSBANK OF TEXAS THE PAWN SHOP OPERATOR SAID IT CAN PAY INTEREST ON THE CREDIT LINE AT EITHER THE LONDON INTERBANK OFFERED RATE PLUS ONE PERCENTAGE POINT OR THE CERTIFICATE OF DEPOSIT RATE PLUS ONE PERCENTAGE POINT WHICH IS ABOUT THE SAME RATE AS CASH AMERICA PAID ON ITS PREVIOUS LINE OF 65 MILLION 9307070077 930707 WHO'S NEWS TRAVELERS CORP TRAVELERS CORP HARTFORD CONN KEITH F ANDERSON WAS NAMED VICE PRESIDENT OF PUBLIC RELATIONS OF THIS INSURANCE MANAGED HEALTH CARE AND INVESTMENT COMPANY MR ANDERSON 46 YEARS OLD HAD BEEN EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF PUBLIC RELATIONS AGENCY CARL BYOIR & ASSOCIATES THE POSITION AT TRAVELERS HAD BEEN OPEN FOR SOME TIME 9307070076 930707 WHO'S NEWS BRITISH AEROSPACE PLC BRITISH AEROSPACE PLC LONDON JAMES A BURK 41 YEARS OLD WAS NAMED VICE PRESIDENT OF CORPORATE AIRCRAFT SALES WORLDWIDE FILLING A VACANCY AT JETSTREAM AIRCRAFT INC A WASHINGTON DC UNIT OF THIS AEROSPACE COMPANY MR BURK HAD BEEN DIRECTOR OF SALES FOR FIELD AVIATION CO IN TORONTO 9307070075 930707 INTERNATIONAL YOUNG & RUBICAM FOOTE CONE OFFICIALS ARE ARRESTED IN ITALY MILAN TOP EXECUTIVES AT THE ITALIAN SUBSIDIARY OF YOUNG & RUBICAM INC AND THE ITALIAN JOINT VENTURE OF FOOTE CONE & BELDING COMMUNICATIONS INC WERE ARRESTED ON CORRUPTION CHARGES DRAGGING MORE EXECUTIVES OF US COMPANIES INTO ITALY'S KICKBACK SCANDAL THE MANAGING DIRECTOR OF YOUNG & RUBICAM'S ITALIAN SUBSIDIARY UGO CASTELLANI WAS CHARGED WITH VIOLATING POLITICAL PARTY FINANCING LAWS THE COMPANY CONFIRMED MR CASTELLANI IS ACCUSED OF PAYING A 50 MILLION LIRE 32430 KICKBACK TO THE FORMER SECRETARY OF THE MINISTER OF HEALTH TO OBTAIN A CONTRACT FOR A GOVERNMENTFINANCED ANTIAIDS TELEVISION AD CAMPAIGN CLAUDIO MASI DE VARGAS MACCIUCCA MANAGING DIRECTOR OF PUBLICIS FCB/MAC ITALY THE MINORITYHELD ITALIAN SUBSIDIARY OF FOOTE CONE & BELDING WAS ARRESTED FOR ALLEGEDLY PAYING A BRIBE OF 360 MILLION LIRE TO THE SAME HEALTH MINISTRY OFFICIAL FOR THE SAME AIDS CAMPAIGN FORMER MANAGERS OF THE TWO COMPANIES' ROME OFFICES WERE JAILED ON SIMILAR CHARGES JUNE 24 BOTH ROME EXECUTIVES ARE NOW UNDER HOUSE ARREST IF THERE IS A VIOLATION OF ITALIAN LAWS THIS VIOLATION WAS MADE WITHOUT OUR AGREEMENT SAID MAURICE LEVY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PUBLICIS FCB COMMUNICATION THE EUROPEAN JOINT VENTURE OWNED 51 BY FRENCH AD AGENCY PUBLICIS AND 49 BY FCB A SPOKESMAN FOR YOUNG & RUBICAM IN NEW YORK HAD NO COMMENT WE'RE AWARE OF WHAT'S GOING ON HE SAID THE ARRESTS ARE PART OF A WIDENING INVESTIGATION BY MILAN AND NAPLES MAGISTRATES INTO ALLEGED CORRUPTION IN THE ITALIAN MINISTRY OF HEALTH MORE THAN 35 PEOPLE ARE UNDER ARREST AWAITING QUESTIONING BY MAGISTRATES FORMER HEALTH MINISTER FRANCESCO DE LORENZO HAS BEEN NOTIFIED BY MAGISTRATES THAT HE IS UNDER INVESTIGATION ON ACCUSATIONS RANGING FROM CORRUPTION TO VIOLATING POLITICAL PARTY FINANCING LAWS HE HAS DENIED THE CHARGES THE HEALTH MINISTRY SCANDAL IS A SUBSET OF ITALY'S FAR BROADER SCANDAL INVOLVING SYSTEMATIC POLITICAL KICKBACKS 9307070074 930707 BUSINESS BRIEF PARKER & PARSLEY MOSTLY COMPLETES TENDER OFFER FOR ENERGY PARTNERSHIPS MIDLAND TEXAS PARKER & PARSLEY PETROLEUM CO SAID IT COMPLETED A TENDER OFFER FOR ALL BUT TWO OF 35 TROUBLED ENERGY PARTNERSHIPS SPONSORED BY PRUDENTIAL SECURITIES INC THE EXPIRATION DATE FOR TENDERS IN THE REMAINING TWO PARTNERSHIPS WHICH REPRESENT 7 MILLION OF THE TOTAL 491 MILLION TENDER OFFER HAS BEEN EXTENDED TO MONDAY BASED ON A PRELIMINARY COUNT THE COMPANY HAD RECEIVED VALID TENDERS FOR ABOUT 95 OF THE MINIMUM UNITS NECESSARY TO COMPLETE THE OFFER FOR ONE PARTNERSHIP AND ABOUT 94 FOR THE OTHER WE EXPECT TO QUICKLY HAVE ON DEPOSIT THE FEW REMAINING UNITS NEEDED TO ACHIEVE A MAJORITY SAID SCOTT D SHEFFIELD CHIEF EXECUTIVE OFFICER UNDER THE SALE AGREEMENT THE 130000 INVESTORS IN PARTNERSHIPS SPONSORED BY THE UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA WILL GET ABOUT 79 CENTS FOR EACH DOLLAR OF THEIR ORIGINAL INVESTMENT PARKER & PARSLEY HAD ORIGINALLY OFFERED TO PAY INVESTORS ONLY 4483 MILLION FOR THE PARTNERSHIPS BUT INCREASED THE OFFER TO WIN A FOURWEEK BIDDING WAR WITH LOUIS DREYFUS NATURAL GAS CORP PARKER & PARSLEY EXPECTS TO PAY A TOTAL OF 508 MILLION FOR THE PARTNERSHIPS INCLUDING A 17 MILLION PAYMENT TO THE GENERAL PARTNERS TO CUT SHORT THE BIDDING WAR AND SETTLE RELATED LITIGATION PARKER & PARSLEY ALSO AGREED TO SELL LOUIS DREYFUS SOME OF THE PROPERTIES FOR 157 MILLION AFTER THE SALE TO LOUIS DREYFUS THE DEAL WILL INCREASE PARKER & PARSLEY'S PROVED OIL AND GAS RESERVES BY ABOUT 60 TO THE EQUIVALENT OF 202 MILLION BARRELS OF OIL THE COMPANY SAID GAS PRODUCTION WILL MORE THAN DOUBLE OVER THE NEXT YEAR WHILE OIL PRODUCTION WILL INCREASE ABOUT 50 AS A RESULT OF THE DEAL DESPITE THE NEWS ON THE TENDER OFFER PARKER & PARSLEY'S STOCK DROPPED 1125 OR 42 TO 25875 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY ANALYST THOMAS R DRISCOLL OF SALOMON BROTHERS INC ATTRIBUTED THE DROP TO A GENERALLY WEAK MARKET FOR OILBASED STOCKS 9307070073 930707 GENERAL CABLE VENTURE IN RUSSIA HIGHLAND HEIGHTS KY GENERAL CABLE CORP SAID IT WILL FORM A JOINT VENTURE IN RUSSIA TO PRODUCE AUTOMOTIVE WIRE PLASTICINSULATED BUILDING WIRE AND OTHER TYPES OF CABLE FOR THE RUSSIAN MARKET THE JOINT VENTURE WILL BE BETWEEN GENEX A PARTNERSHIP OF GENERAL CABLE AND NEW JERSEYBASED VIDEX EQUIPMENT CORP AND YUGOVOSTOCKELECTROMONTAZH A RUSSIAN WIRE AND CABLE MANUFACTURER THE PARTNERS EXPECT TO INVEST ABOUT 5 MILLION IN WHAT WILL BE CAROL CABLE OF RUSSIA 9307070072 930707 WHO'S NEWS MEDIA GENERAL INC MEDIA GENERAL INC RICHMOND VA ROBERT W PENDERGAST 53 YEARS OLD WAS NAMED VICE PRESIDENT CORPORATE COMMUNICATIONS A NEW POSITION AT THIS MEDIA CONCERN HE HAD BEEN DIRECTOR OF CORPORATE COMMUNICATIONS 9307070071 930707 SPOILED SPOILS EVEN SERBS DISCOVER NO ONE IS THE VICTOR IN YUGOSLAV CONFLICT ETHNIC HATREDS GROW RIPER IN A DEVASTATED BOSNIA FUELING FEARS IN EUROPE HARVESTING WHEAT FOR WHAT BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL BJELOVAC BOSNIAHERZEGOVINA FOUR TIMES THIS LITTLE VILLAGE ON THE SHADY BANKS OF THE DRINA RIVER WAS ETHNICALLY CLEANSED DECEMBER FEBRUARY MARCH APRIL THE CLEANSINGS CAME ALMOST AS FREQUENTLY AS A NEW MOON FIRST IT WAS THE MUSLIMS OVERRUNNING THE SERBMAJORITY POPULATION AND SHOOTING UP THE SCHOOL AND SERBIAN CEMETERY THEN THE SERBS ROARED BACK CHASING THE MUSLIMS INTO THE HILLS AND BLASTING THE LOCAL MOSQUE TO BITS THE MUSLIMS RETURNED DESTROYING SERBIAN HOUSES AND BARNS THE SERBS ANSWERED WITH AN ALLOUT OFFENSIVE ONCE IN CONTROL THEY TORCHED EVERY BUILDING STILL STANDING BE IT MUSLIM OR SERBOWNED TO MAKE SURE THE MUSLIMS WOULDN'T COME BACK FINALLY BJELOVAC WASN'T CLEANSED IT WAS OBLITERATED NOW AS THE WINTER WHEAT HAVING SLEPT THROUGH THE HAVOC FORLORNLY AWAITS ITS HARVEST THE SERBS STAND PROUDLY ASTRIDE THIS CARNAGE BOLDLY PROCLAIMING THEMSELVES THE WINNERS OF THE BOSNIAN WAR THIS AREA OF EASTERN BOSNIA WAS DESIGNATED FOR MUSLIM CONTROL UNDER THE UNITED NATIONS PEACE PLAN THE SERBS REFUSED TO BUDGE INSTEAD THE WORLD DID BACKING DOWN ON THREATS OF MILITARY INTERVENTION AND THEN EVEN ABANDONING THE PEACE PLAN ITSELF THE WHEAT NO MATTER WHO PLANTED IT WILL END UP IN SERBIAN SILOS 'WE WIN' WE'VE WON ABSOLUTELY ONE HUNDRED PERCENT SAYS VASO PETROVIC A SERBIAN RESIDENT OF BJELOVAC WHICH IS JUST OVER THE HILLS FROM SREBRENICA THE SUPPOSED UN MUSLIM SAFE HAVEN BESIEGED BY THE SERBS AS HE SCAVENGES THROUGH THE WRECKAGE OF A NEIGHBOR'S HOUSE TWO ITEMS OF HIS SALVATION A BULLET AND A SERBIAN ORTHODOX CROSS DANGLE FROM A CHAIN AROUND HIS NECK NO DOUBT ABOUT IT HE CONCLUDES WE WON ALL RIGHT BUT AT WHAT PRICE MR PETROVIC HAS NO HOUSE UNLESS YOU CALL THAT PILE OF RUBBLE IN THE HILLS AT THE FAR END OF TOWN A HOUSE HE HAS NO CLOTHES OTHER THAN THE RAGGED ARMY UNIFORM HANGING ON HIS BODY AND HE HAS NO JOB EXCEPT FOR AN OCCASIONAL STINT ON THE FRONT LINE BESIEGING SREBRENICA FOR WHICH HE RECEIVES A MONTHLY SALARY THAT DISAPPEARS AFTER FOUR PACKS OF CIGARETTES WHAT HE DOES HAVE THOUGH IS A 75YEAROLD MOTHER WHO PRODS HIM CONSTANTLY PICK UP THAT WHEELBARROW AND LET'S GO SHE ORDERS GRITTING THE LAST THREE TEETH IN HER HEAD THERE'S WORK TO DO SO MR PETROVIC WHO SAYS HE IS 29 BUT LOOKS MUCH OLDER PICKS UP THE WHEELBARROW FILLED WITH ODD PIECES OF WOOD AND TRUDGES OFF TO REBUILD THE PILE OF RUBBLE IN THE HILLS AT THE FAR END OF TOWN I THINK IT IS A WASTE OF TIME HE SAYS WIPING HIS BROW BUT TIME IS ALL I'VE GOT NO MATTER HOW BOSNIA IS FINALLY DIVIDED AMONG SERBS CROATS AND MUSLIMS EVERYBODY EVEN THOSE CLAIMING VICTORY IS A LOSER THE DEVASTATION IS SO PERVASIVE THAT THE LEGACY OF WARDESTROYED VILLAGES DISPLACED POPULATIONS SHATTERED ECONOMIES BURNING HATREDS WILL LIKELY BE MORE RUINOUS TO EUROPE AND TO CHRISTIANMUSLIM RELATIONS THAN THE WAR ITSELF THE BOSNIA THAT THE UNITED NATIONS RECOGNIZED IN APRIL 1992 IS LIKELY TO DISAPPEAR WITHOUT OUTSIDE INTERVENTION THE COMBATANTS PREDICT IT IS ONLY A MATTER OF TIME BEFORE THE SERB AND CROAT TERRITORIES ATTACH THEMSELVES TO A GREATER SERBIA AND A GREATER CROATIA LEAVING A COUPLE OF SCRAPS OF LAND IF EVEN THAT UNDER MUSLIM CONTROL IF THAT HAPPENS BOSNIAHERZEGOVINA COULD EMERGE AS LITTLE MORE THAN A WAR MEMORIAL TO THE FALLEN IDEALS OF THE UN AND THE EUROPEAN COMMUNITY WHICH FAILED TO PRESERVE HER BORDERS THE WOUNDED SUCCESSOR STATES WILL BE FERTILE BREEDING GROUND FOR MIDDLE EASTTYPE INSTABILITY IN EUROPE BOSNIA'S MUSLIMS ONCE AS SECULAR AS ANY IN THE WORLD FEEL BETRAYED BY THEIR FORMER CHRISTIAN ALLIES AND HAVE ALREADY BECOME A CAUSE CELEBRE OF THEIR FUNDAMENTALIST BROTHERS THE SERBS THEIR AGGRESSION REWARDED BELIEVE THEY HAVE A FREE HAND TO REPRESS THE RESTIVE ALBANIAN AND HUNGARIAN MINORITIES IN THEIR MIDST THE CROATIAN GOVERNMENT THOUGH CLAIMING WESTERN VALUES HAS SHOWN LITTLE INCLINATION TO CHERISH HUMAN RIGHTS BE THEY OF ITS SERBIAN MINORITY OR OF DISSENTING JOURNALISTS ALL THREE POPULATIONS WILL BE IMPOVERISHED ECONOMICALLY AND PSYCHOLOGICALLY THE PHYSICAL DESTRUCTION OF THE WAR IS STUNNING SOME AREAS LIKE A 40MILE RANGE NORTH AND SOUTH OF BJELOVAC HAVE BEEN BOMBED BACK TO A PREVIOUS CENTURY ON A SCORCHING EARLY SUMMER AFTERNOON THE BOSNIAN SIDE OF THE DRINA LOOKS LIKE THE BACKGROUND SCENERY IN GONE WITH THE WIND GEORGIA AFTER SHERMAN'S DEVASTATING MARCH CHARRED HOUSES AND BARNS CHOKE THE HORIZON AS FAR AS THE EYE CAN SEE SURVIVORS CLAD IN RAGS ARE BENT OVER IN THE FIELDS SWINGING PITCHFORKS AND SCYTHES WOMEN STOOP FROM THE BURDEN OF FIREWOOD STRAPPED TO THEIR BACKS MEN PUSH WHEELBARROWS AND RIDE ATOP HORSEDRAWN WAGONS REFUGEES SEARCHING FOR THEIR HOMES SHUFFLE UP AND DOWN THE MAIN ROAD IN A STATE OF BEWILDERMENT THREE OR FOUR YEARS AGO YOU COULDN'T PERCEIVE THAT YUGOSLAVIA WOULD BE IN THE THIRD WORLD AND IN NEED OF THAT KIND OF DEVELOPMENT AID DESPAIRS A HUMANITARIAN AID OFFICIAL AT THE EUROPEAN COMMUNITY HEADQUARTERS IN BRUSSELS BUT NOW IT IS A REALITY ALREADY CROATIA AND SERBIA THEIR WAR ECONOMIES FLAT BROKE ARE AUDACIOUSLY CLAMORING FOR A KIND OF POSTWORLD WAR II MARSHALL PLAN TO HELP THEM REBUILD WHAT THEY THEMSELVES DESTROYED NO AMOUNT OF WESTERN MONEY HOWEVER WILL REPAIR THE PSYCHOLOGICAL SCARS THE HATREDS THAT IGNITED AND FUELED THE WAR RAGE EVEN MORE FIERCELY NOT ONLY WERE VILLAGES TOTALLY DESTROYED THE RUINS ALSO HIDE THE SECRETS OF HORRIBLE MASSACRES WHILE SOME 150000 PEOPLE ARE DEAD OR MISSING FEW OF THE FOUR MILLION SURVIVORS HAVE ESCAPED THE TRAUMA TWO MILLION ARE REFUGEES A NUMBER THAT WILL INCREASE AFTER ANY FINAL SETTLEMENT AS POPULATIONS ADJUST TO THE NEW POLITICAL BOUNDARIES THE GRIEVANCES OF WAR CARRIED BY THE REFUGEES ARE FESTERING ALL OVER EUROPE BOSNIA'S MUSLIM LEADERS WARN THAT ANY WESTERNAPPROVED DEAL CARVING UP BOSNIA MAY LEAD TO TERRORIST ATTACKS IN WESTERN EUROPE AND THE US ALREADY MUSLIM REFUGEES IN VIENNA REPORT BEING VISITED BY MUSLIMS FROM THE MIDDLE EAST AND AFRICA EXHORTING THEM TO FORM JIHAD UNITS TO FIGHT FOR THEIR MUSLIM STATE THE LONGER THE REFUGEES REMAIN IN THEIR TEMPORARY HOMES THE MORE APPEALING SUCH A MESSAGE BECOMES FOR SOME ENOUGH TIME HAS ALREADY PASSED THE UN AND THE INTERNATIONAL COMMUNITY WANT PEACE FIRST AND FREEDOM FOR BOSNIA SECOND WE SAY FREEDOM FIRST THEN PEACE SAYS EDO KRAJINIC A MUSLIM REFUGEE SCROUNGING FOR WEAPONS AMONG THE ARMS DEALERS CROWDING INTO ZAGREB THE CROATIAN CAPITAL IF THEY THE INTERNATIONAL COMMUNITY WON'T ESTABLISH FREEDOM FOR US WE'LL DO IT OURSELVES IMAM SEVKO OMERBASIC ONE OF THE LEADING MUSLIM CLERICS IN THE FORMER YUGOSLAVIA PREDICTS THAT THE BOSNIAN REFUGEES WILL BECOME AS RESTLESS AS THE PALESTINIANS NOT A SINGLE MUSLIM WILL RESPECT A PLAN CARVING UP BOSNIA HE SAYS IN HIS ZAGREB OFFICE CLOGGED WITH REFUGEES NO POWER IN THE WORLD CAN PREVENT THE MUSLIMS FROM GOING BACK TO THE AREAS THAT HAVE BEEN ETHNICALLY CLEANSED EVEN WHILE THE WAR CONTINUES ITS UGLY LEGACY IS ON DISPLAY IN BJELOVAC AS SERB RESIDENTS SLOWLY RETURN TO CLAIM THE TRULY SPOILED SPOILS OF VICTORY AND VOW THAT THEIR MUSLIM NEIGHBORS NEVER WILL COME BACK THERE IS NO MAGNANIMITY OR HUMILITY ONLY HATRED AND VENGEANCE THEY MAY BE THE WINNERS BUT THEY LOOK AND SPEAK LIKE THE LOSERS FIFTYSIX CIVILIANS DIED THE FIRST DAY THE MUSLIMS ATTACKED AT SIX IN THE MORNING WE WERE TOTALLY DEFENSELESS RECALLS VASO PETROVIC REFERRING TO THE OPENING ACT OF THE ETHNIC CLEANSINGS ON DEC 14 HE IS JOINED BY HIS MOTHER AND FIVE NEIGHBORS SEEKING TO ESCAPE THE NOONDAY SUN IN THE SHADE OF A PLUM TREE THE MUSLIMS DESTROYED ABOUT 40 HOUSES THAT FIRST DAY INCLUDING MINE MINE TOO SAYS A YOUNG MAN LEANING AGAINST A RUSTING TRACTOR HE NODS TOWARD A BRICK HOUSE BEHIND THE TREE OR AT LEAST WHAT REMAINS OF A BRICK HOUSE THE MUSLIMS EVEN TOOK THE ROOF HE SCOFFS RUZA DJOKANOVIC A 67YEAROLD WOMAN WITH A BLACK SCARF WRAPPED AROUND HER HEAD POINTS TO THE FIRST HOUSE TO THE SOUTH NOW JUST FOUR POROUS WALLS AND A COLLAPSED ROOF BLACKENED BY SMOKE MUSLIMS LIVED THERE SHE SAYS SERBS BURNED IT DOWN WHEN WE CAME BACK IN FEBRUARY OUR NEIGHBORS IN THAT HOUSE THEY SHOT AT US THESE SERBS CLAIM THAT AT LEAST 100 PEOPLE WERE KILLED IN THE SERIES OF CLEANSINGS WHICH IS MORE THAN 10 OF THE VILLAGE'S PREWAR POPULATION THOSE ARE JUST THE SERBIAN CASUALTIES THEY DON'T CARE HOW MANY MUSLIMS DIED YOU CAN DRAW A THOUSAND MAPS BUT THERE IS NO CHANCE THE MUSLIMS CAN EVER COME BACK HERE SNEERS MRS DJOKANOVIC THIS LAND IS SOAKED WITH SERBIAN BLOOD SHE AND HER SISTERINLAW SAVKA LEAVE THE SHADE OF THE PLUM TREE AND GET BACK TO WORK PULLING WEEDS FROM THE BLOODSTAINED LAND THEY ARE WORKING IN A FIELD NEXT TO THE MUSLIM HOUSE TENDING A SMALL PATCH OF CORN THEY PLANTED BY HAND EVERYTHING WE HAD HAS BEEN BURNED AND DESTROYED THE HOUSE THE STABLES THE BARN SAYS MRS DJOKANOVIC ONCE WE HAD EVERYTHING NOW WE HAVE NOTHING JUST OUR LIVES BENDING DEEPLY TO TEND THE CORN THAT IS LITTLE HIGHER THAN HER ANKLES SHE SEEMS TO ENVY THOSE WHO HAVE DIED THE CORN SHOULD BE UP TO HERE BY NOW SHE SAYS POINTING TO HER WAIST ALL THIS WORK AND WHAT WILL WE GET RANKO NIKOLIC ASKS THE SAME QUESTION WHILE LABORIOUSLY WIELDING A PITCHFORK IN HIS HAYFIELD I DON'T KNOW WHAT WE'LL DO WITH THE HAY HE SAYS TOSSING A FORKFUL UP TO HIS GODMOTHER PERCHED ATOP A ROUNDED STACK MY COWS ARE ALL GONE MUSLIMS TOOK THEM RAIL THIN AND 37 YEARS OLD MR NIKOLIC NOW LIVES AS A REFUGEE IN THE NEARBY CITY OF BRATUNAC THAT WAS MY HOUSE OVER THERE THE BURNEDOUT ONE HE SAYS POINTING ACROSS THE FIELD THE IMPORTANT THING IS TO SAVE THE WALLS BUT LOOK AT IT IT'S TOO BADLY DAMAGED AMID THE DESTRUCTION HIS WINTER WHEAT PLANTED IN SEPTEMBER HAS GROWN TALL AND STRONG IF SOMEONE FROM ACROSS THE RIVER IN SERBIA DOESN'T COME WITH A HARVESTING COMBINE SOON HE WILL START THE HARVEST WITH HIS HANDS WE'RE USED TO WORKING ALL THE TIME ON THE LAND HE SAYS IT'S SO SAD TO LOOK AT MY FIELDS AND NOT DO ANYTHING SO I COME HERE TO WORK FOR WHAT I DON'T KNOW PETAR TANASIC COMES BACK TO PICK HIS CHERRIES THEY AND THE PLUMS AND PEARS ARE ALL THAT IS LEFT OF HIS FARM JUST BEYOND THE LITTLE BRIDGE AT THE END OF BJELOVAC HIS HOUSE IS A CRUMBLING SHELL OF BRICKS HIS LAWN IS LITTERED WITH SPENT MORTAR SHELLS HIS SON A BUSINESSMAN DIED IN THE FIRST MUSLIM ATTACK HE AND HIS WIFE SCRAMBLED THROUGH THE FIGHTING AND HID BY THE DRINA UNTIL NIGHTFALL WHEN SOMEONE CAME WITH A BOAT AND TOOK THEM ACROSS THE RIVER TO SERBIA THAT IS WHERE THEY LIVE TODAY AND MOST PROBABLY WHERE THEY WILL DIE WE HAVE NO FUTURE WE ARE TOO OLD SAYS THE 64YEAROLD FARMER MY SON HE WAS WELLEDUCATED HE HAD A GOOD JOB THE OLD MAN WEEPS AS HE WALKS DOWN TO THE DRINA AND THE ROWBOAT HE HAS TIED TO A TREE HE WILL COME BACK SOME OTHER DAY FOR MORE CHERRIES AND SOON THE PLUMS AND PEARS WILL BE RIPE THAT IS ALL THE SERBIAN VICTORY WILL YIELD FOR HIM HE SPITS OUT THE WORD VICTORY LIKE A CHERRY PIT EVERYTHING IS DESTROYED HE MUMBLES OVER AND OVER IT IS HIS MANTRA EVERYTHING IS DESTROYED 9307070070 930707 IDAN SOFTWARE PLANS TO SELL STAKE TEL AVIV ISRAEL IDAN SOFTWARE INDUSTRIES LTD SAID IT ENTERED AN AGREEMENT WITH A UNIT OF AMPALAMERICAN ISRAEL CORP FOR THE PURCHASE OF 23 MILLION IDAN SHARES OR ABOUT AN 84 INTEREST IN THE TELECOMMUNICATIONS SERVICES AND PRODUCTS COMPANY AMPALAMERICAN WHICH MAKES LOANS AND EQUITY INVESTMENTS IN ISRAELI COMPANIES WILL INVEST ABOUT 35 MILLION IN IDAN AND NAME A MEMBER TO IDAN'S BOARD AMPALAMERICAN IS A SUBSIDIARY OF BANK HAPOALIM 9307070069 930707 LEISURE & ARTS BOOKSHELF TALES OF OBSESSIVE PASSION AT A TIME WHEN MORE AND MORE PEOPLE HAVE LEARNED TO SCRUTINIZE ROMANTIC AND FAMILIAL RELATIONSHIPS WITH THE PRACTICED EYES OF ACCOUNTANTS STUDYING BALANCE SHEETS THE ONCEVENERABLE CONDITION KNOWN AS BEING IN LOVE IS STARTING TO LOOK MORE AND MORE LIKE A FORM OF LUNACY BUT WHILE MODERN LOVERS ARE THOUGHTFULLY PONDERING QUESTIONS LIKE AM I LEAVING MY SIGNIFICANT OTHER ENOUGH SPACE AND IS HE OR SHE TRULY SUPPORTIVE OF MY NEEDS THE APPETITE FOR TALES OF WILDLY IRRATIONAL OBSESSIVE PASSION CONTINUES UNABATED ALICE ADAMS'S STYLISH BRITTLE ENGROSSING EIGHTH NOVEL ALMOST PERFECT KNOPF 244 PAGES 23 OFFERS AN ALLTOOBELIEVABLE ACCOUNT OF A NORMALLY SENSIBLE WOMAN WHO FALLS FOR A DEEPLY ROTTEN MAN DARKHAIRED SMALL SHYLY ATTRACTIVE STELLA BLAKE IS A STRUGGLING SAN FRANCISCOBASED JOURNALIST JUST STARTING TO MAKE GOOD IN HER CAREER SHE'S ASSIGNED TO INTERVIEW RICHARD FALLON A LOCAL ADVERTISING/COMMERCIAL ART HOTSHOT WHO'S REGARDED AS SOMETHING OF A GENIUS RICHARD'S THE SORT OF GUY WHO SELDOM READS A BOOK AND WHO VIEWS THE INTELLIGENT BUT SCARCELY INTIMIDATING STELLA AS A SNOBBISH INTELLECTUAL BUT RICHARD IS ALSO TALL BLOND TALENTED VERY HANDSOME AND SLIGHTLY OUTOFKILTER A COMBINATION QUITE ENOUGH TO OVERRIDE STELLA'S MILD QUALMS AND MORE THAN ENOUGH TO IMPRESS THE SOPHISTICATED SAN FRANCISCO SET OF THEIR MUTUAL FRIENDS AND ACQUAINTANCES ON HAND TO WATCH AND COMMENT ON THE TRAJECTORY OF THEIR WHIRLWIND LOVE AFFAIR AT THE HEIGHT OF THE ROMANCE RICHARD CARRIES ON WITH ANOTHER WOMAN BENEATH HIS POLISHED VENEER HE IS OFTEN COARSE AND CRUDE IN HIS THINKING HE HARBORS SECRET SHAME AND ANGER ABOUT HIS LOWERCLASS JERSEY CITY ORIGINS AND RESENTS POOR UNASSUMING STELLA'S PARTLY UPPERCLASS BACKGROUND HE'S PRONE TO UNPREDICTABLE RAGES THAT BOIL UP OVER NOTHING THEN DISAPPEAR WITHOUT A TRACE FOR A LONG TIME THE SENSITIVE INSECURE STELLA HAS THE FEELING THAT ONE OF THEM MUST BE CRAZY GRADUALLY SHE BEGINS TO SUSPECT IT'S RICHARD BUT MAYBE SHE'S CRAZY TO STAY WITH HIM SHE FEELS AS THOUGH SOME VERY SANE PERSON WERE TELLING HER YOU ARE NOT SUPPOSED TO FEEL THIS WAY NEITHER YOUR HAPPINESS NOR YOUR SANITY SHOULD DEPEND ON RICHARD'S PRESENCE AND STELLA HAS TO ANSWER BUT SO MUCH DOES DEPEND ON RICHARD FOR ME I AM HOOKED I AM MADLY IN LOVE MADLY IN LOVE MADLY HOOKED MS ADAMS'S BITING CURIOUSLY HECTIC PRESENTTENSE NARRATIVE SKITTERS ALONG THE DECEPTIVELY BRIGHT SURFACE DIPPING IN AND OUT OF THE VIEWPOINTS OF STELLA RICHARD AND A COLORFUL SUPPORTING CAST IN ORDER TO REVEAL THE CONFLICTING MOTIVES AND MINDSETS BENEATH THE VENEER HER APPROACH IS MORE EFFECTIVE IN HIGHLIGHTING THE GRIM IRONIES OF THIS LUNACYCROSSED LOVE AFFAIR THAN IN FLESHING OUT THE DEEPER CAUSES OF RICHARD'S CRAZINESS OR STELLA'S NEARADDICTION BUT MS ADAMS FIRMLY KEEPS THE REST OF THE STORY'S ACTION WELL WITHIN THE RANGE OF CREDIBILITY EXPERTLY CREATING AN ATMOSPHERE OF INTRIGUING SUSPENSE WITHOUT RESORTING TO LURID VIOLENCE OR CHEAP MELODRAMA NEITHER OF THE PROTAGONISTS OF ANITA SHREVE'S NEW NOVEL WHERE OR WHEN HARCOURT BRACE 244 PAGES 2195 SEEMS THE LEAST BIT PSYCHOTIC BUT THEIR PRECIPITOUS LOVE AFFAIR HAS A SINGULAR INTENSITY THAT THREATENS THE COMMONSENSED REALITY OF THE LIVES THEY'VE BEEN LIVING CHARLES CALLAHAN IS A 45YEAROLD INSURANCE AND REALESTATE BROKER MARRIED WITH THREE CHILDREN STRUGGLING TO MAKE HIS MORTGAGE PAYMENTS IN THE WAKE OF THE RECESSION THAT'S HIT HIS SMALL RHODE ISLAND TOWN HIS MARRIAGE WHILE NEVER IDYLLIC IS WORKING REASONABLY WELL ONE DAY CHARLES SEES A NEWSPAPER PHOTOGRAPH OF A WOMAN WHO'S JUST PUBLISHED HER FIRST BOOK OF POEMS ALTHOUGH 31 YEARS HAVE PASSED SINCE THEY BRIEFLY MET AS INNOCENT 14YEAROLDS AT A CATHOLIC SUMMER CAMP CHARLES RECOGNIZES SHE IS NONE OTHER THAN HIS FIRST LOVE SIAN RICHARDS HE KNOWS HE MUST AT THE VERY LEAST GET IN TOUCH WITH HER SO HE WRITES HER A LETTER SIAN MEANWHILE HAS ALSO MARRIED HAD A SON WHO DIED IN AN ACCIDENT AND MORE RECENTLY A SECOND CHILD NOW A WINSOME LITTLE GIRL OF 3 SHE AND HER RATHER SULLEN HUSBAND LIVE ON AN ONION FARM IN PENNSYLVANIA WHERE THEY'VE JUST SUFFERED TWO CROP FAILURES AFTER SOME HESITATION ON BOTH SIDES CHARLES AND SIAN ARRANGE A REUNION FOR SOME REASON KEEPING IT SECRET FROM THEIR RESPECTIVE SPOUSES THE REASON OF COURSE IS THAT THEY ARE ABOUT TO REALIZE THE GREAT LOVE OF THEIR LIVES OR ARE THEY AS EACH SOMETIMES FEARS MERELY IN FLIGHT FROM THEIR REAL LIVES REGRESSIVELY TRYING TO RECAPTURE AN IMMATURE CHILDHOOD LOVE AND EVEN IF THEIR LOVE IS INDEED THE MIRACULOUS THING THEY BELIEVE IT IS CAN THEY AFFORD ITS INEVITABLE COSTS THE AUTHOR OF TWO PREVIOUS NOVELS AND TWO NONFICTION BOOKS MS SHREVE WRITES WITH A DELICATE RESTRAINT THAT LENDS FORCE AND IMMEDIACY TO THIS SOMBERLY ROMANTIC STORY ALTERNATING BETWEEN CHARLES'S FIRSTPERSON AND SIAN'S THIRDPERSON PERSPECTIVE SHE DRAWS US INTO THEIR PRIVATE WORLD OF EMOTION WHERE NORMAL RATIONALITY IS NOT SO MUCH ABANDONED AS GENUINELY PERPLEXED BY THE FATEFUL TRICKS TIME AND LOVE CAN PLAY 9307070068 930707 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY JUNE 23 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9307070067 930707 SOUTHWEST AIR FREQUENT FLIERS DALLAS SOUTHWEST AIRLINES WHICH RECENTLY ENTERED THE SAN JOSE CALIF MARKET IS SWEETENING ITS ALREADY LOW FARES BY DOUBLING THE FREQUENT FLIER CREDIT FOR ALL CUSTOMERS FLYING INTO OR OUT OF SAN JOSE INTERNATIONAL AIRPORT WITH THIS PROMOTION GOOD UNTIL DEC 31 SOUTHWEST JOINS THE FREQUENT FLIER BONUS WAR RAGING FOR THE PAST FEW MONTHS BETWEEN USAIR GROUP INC AND UAL CORP'S UNITED AIRLINES IN THAT MARKET SOUTHWEST WILL GIVE ITS CUSTOMERS DOUBLE CREDIT FOR FLIGHT SEGMENTS OR ONEWAY FLIGHTS TAKEN SOUTHWEST BEGAN SERVICE OUT OF SAN JOSE ON JUNE 1 WITH 11 DAILY FLIGHTS TO BURBANK AND LAS VEGAS MORE FLIGHTS TO OTHER DESTINATIONS ARE SCHEDULED TO BE INTRODUCED LATER THIS SUMMER SOUTHWEST SAID 9307070066 930707 TELEFONICA DE ESPANA RAISES STAKE MADRID SPAIN'S STATERUN TELECOMMUNICATIONS MONOPOLY TELEFONICA DE ESPANA SA SAID IT PAID A TOTAL 31 BILLION PESETAS 2393 MILLION TO RAISE ITS STAKE IN THE CONSORTIUM THAT CONTROLS TELEFONICA DE ARGENTINA SA TO 29 FROM 10 TELEFONICA DE ESPANA SAID IT PAID THE SPANISH BANK BANCO CENTRAL HISPANO 225 BILLION PESETAS FOR ITS 14 STAKE IN COINTEL THE HOLDING COMPANY CREATED TO HOLD THE 605 OF THE ARGENTINE TELEPHONE COMPANY PRIVATIZED IN 1990 THE ARGENTINE GOVERNMENT STILL HOLDS THE REST OF TELEFONICA DE ARGENTINA SPAIN'S TELEFONICA SAID IT PAID 85 BILLION PESETAS TO THE ARGENTINE COMPANY SOCIEDAD COMERCIAL DEL PLATA FOR ITS 52 HOLDING AND AGREED TO EXPLORE POSSIBLE FURTHER JOINT INVESTMENTS IN LATIN AMERICA 9307070065 930707 REVIEW & OUTLOOK EDITORIAL PROPS FOR VIETNAM BILL CLINTON IS TIPTOEING HIS WAY INTO THE VIETNAM ISSUE HE ANNOUNCED FRIDAY THAT THE US WOULD END OUR OPPOSITION TO THE EFFORTS OF OTHER NATIONS TO CLEAR VIETNAM'S ARREARS TO THE INTERNATIONAL MONETARY FUND THIS MEANS THAT ONCE VIETNAM'S 140 MILLION DEBT IS CLEARED IT WILL BE ABLE TO BORROW MORE FROM THE IMF AS WELL AS FROM THE WORLD BANK AND THE ASIAN DEVELOPMENT BANK BUT BECAUSE MR CLINTON DID NOT LIFT THE TRADE EMBARGO AT THE SAME TIME THAT HE OPENED THE MULTILATERAL FLOODGATES THE EFFECT IS THAT US TAXPAYERS WILL BE FUNDING PROJECTS FOR WHICH AMERICAN BUSINESSES CANNOT COMPETE REASONABLE PEOPLE CAN DIFFER ON WHETHER THE TRADE EMBARGO SHOULD BE ENDED TO ALLOW AMERICAN BUSINESS TO TAKE ITS CHANCES IN VIETNAM LIKE MR CLINTON WE ARE STILL TROUBLED BY VIETNAM'S STOPANDGO EFFORTS TO ACCOUNT FOR MISSING AMERICAN SERVICEMEN WE HAVE EXPRESSED THE VIEW HERE THAT THE WORST POSSIBLE OUTCOME FOR AN AMERICAN PRESIDENT ESPECIALLY THIS ONE WOULD BE TO NORMALIZE RELATIONS WITH VIETNAM ONLY TO BE HIT IN THE FACE WITH AN UGLY SURPRISE ABOUT WHAT THE VIETNAMESE DID WITH OR TO AMERICAN POWS IT ISN'T EASY TO UNTANGLE THE ECONOMICS OF DEALING WITH VIETNAM FROM DEEPLY HELD AMERICAN FEELINGS ABOUT ITS GOVERNMENT'S BEHAVIOR NOW OR 20 YEARS AGO WHAT HAS HAPPENED HERE THOUGH APPEARS TO BE A FAMILIARLY DIPLOMATIC DECISION WHICH ULTIMATELY GIVES THE WRONG INCENTIVES TO THE WRONG PEOPLE MR CLINTON ON THE ONE HAND SAYS THAT VIETNAM'S RECORD ON MISSING AMERICANS IS SIMPLY NOT SUFFICIENT TO WARRANT ANY CHANGE IN OUR TRADE EMBARGO FINE THEN ON THE OTHER HE SAYS THAT TENS OF MILLIONS OF DOLLARS IN US TAX MONEY SHOULD BE REWARDED TO THE VIETNAMESE GOVERNMENT FOR ITS EFFORTS SO FAR IF THE POINT WAS TO ENCOURAGE VIETNAM FURTHER ON DISCLOSURES SURELY THERE WERE OTHER WAYS FOR THE US TO DO SO SINCE BOTH SIDES AGREE THAT THE ISSUE OF MISSING AMERICANS IS A HUMANITARIAN ONE THE US COULD HAVE RESPONDED IN LIKE FORM PERHAPS BUILDING A HOSPITAL OR SETTING UP SCHOLARSHIPS FOR VIETNAMESE STUDENTS THESE AT LEAST ARE THINGS THAT WOULD HAVE DIRECTLY BENEFITED INDIVIDUAL VIETNAMESE ONE CANNOT SAY THE SAME OF WHAT LIKELY WILL BE AN EFFORT TO SHOVEL A LOT OF IMF ADB AND WORLD BANK MONEY INTO VIETNAM BY NOW IT IS WELL ESTABLISHED THAT MULTILATERAL AID REINFORCES CENTRALIZED CONTROL OF AN ECONOMY ILLUSED COUNTRIES CAN ACQUIRE ENORMOUS DEBT WITH NOTHING TO SHOW FOR IT FUNNELING MONEY THROUGH THE APPARATUS OF THE VIETNAMESE STATE FOR PUBLIC WORKS PROJECTS WILL NATURALLY REINFORCE ITS POWER WHILE MAKING IT MORE CORRUPT THAN IT ALREADY IS LEST WE FORGET AMID THE UPBEAT NEWS ABOUT DOI MOI OR ECONOMIC RENOVATION THIS IS STILL A VERY NASTY GOVERNMENT HOW THE US SHOULD DEAL WITH VIETNAM IS A COMPLEX AND ANGUISHING ISSUE FOR MANY AMERICANS WE DO NOT QUESTION MR CLINTON'S GOOD FAITH IN TAKING THIS STEP POLITICALLY CHARGED AS IT IS OF ALL THE OPTIONS AVAILABLE TO HIM HOWEVER HE TOOK A PATH THAT SEEMS LIKELY TO BENEFIT MOSTLY THE GOVERNMENT OF VIETNAM NOT ITS PEOPLE OR THE AMERICANS WHO WANT TO DO BUSINESS WITH THE VIETNAMESE PEOPLE DIFFICULT AS AN ISSUE LIKE THIS MAY BE IT'S A SUBJECT THAT DESERVES A THOROUGH RETHINKING WHEN THE TALK IS OF NORMALIZING RELATIONS WITH VIETNAM IT'S ASSUMED THAT VIETNAM MEANS THE GOVERNMENT AND ITS MINISTERS A MORE INNOVATIVE STRATEGY WOULD FIND A WAY TO BENEFIT THE CITIZENS OF A VIETNAM OR CHINA OR IRAQ WITHOUT DIGNIFYING THE POLITICAL LEGITIMACY OF THE UNELECTED PEOPLE WHO ABUSE THE IDEA OF PUBLIC AUTHORITY TO RUN THESE PLACES 9307070064 930707 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL BUSINESS LOSSES AND INTEREST DEDUCTIONS HELP THE WEALTHY ESCAPE TAXES CONGRESS'S UNSURPRISING INTEREST IN PERSONAL WEALTH IS ONE REASON FOR IRS STATISTICAL ANALYSES OF RETURNS IN ITS LATEST REPORTS THE IRS SAYS ABOUT 800000 INCOMETAX RETURNS FOR 1989 OR 07 OF THOSE FILED SHOWED INCOME OF 200000 OR MORE OF THOSE ELITE 779 SHOWED NO US TAX 691 SHOWED NO TAX WORLDWIDE CREDITS FOR FOREIGN TAXES CAN WIPE OUT A US LIABILITY BUT COMBINATIONS OF OTHER FACTORS HAVE GREATER EFFECT THE LEADING FACTORS ON NONTAXABLE RETURNS WERE LOSSES FROM PARTNERSHIPS OR S CORPORATIONS WHICH ARE REPORTED ON PERSONAL RETURNS AND DEDUCTIONS FOR INTEREST COSTS AND CASUALTY OR THEFT LOSSES FROM ESTATETAX RETURNS THE IRS ESTIMATES THAT 34 MILLION PEOPLE UNDER 2 OF THE ADULT POPULATION HAD GROSS ASSETS EXCEEDING 600000 IN 1989 REAL ESTATE MADE UP 31 OF THE ASSETS STOCKS 26 NEARLY 13 MILLION PEOPLE HAD NET WORTHS EXCEEDING 1 MILLION EACH TAXABLE INCOME EXCEEDING 1 MILLION WAS SHOWN ON 57476 RETURNS FOR 1989 THE AVERAGE TAX RATE ON THEM WAS ABOUT 28 THE IRS IS RESHAPING ITSELF TO FIT INTO THE AGE OF ADVANCED TECHNOLOGY BEFORE THE CLINTON ADMINISTRATION TOOK OVER THE IRS BEGAN TO PLAN A RESTRUCTURING TO BENEFIT BETTER FROM ITS 8 BILLION COMPUTERMODERNIZATION PROGRAM THE AGENCY NOW HAS OUTLINED MOVES MEANT TO TRIM MANAGEMENT LAYERS SHIFT MORE SENIOR PERSONNEL AND MORE DECISIONMAKING INTO FIELD OFFICES AND CREATE CENTERS OF SPECIALIZATION ITS GOAL TO IMPROVE VOLUNTARY COMPLIANCE AND SERVICE TO TAXPAYERS WHILE KEEPING ITS WORK FORCE AT THE PRESENT LEVEL OF 115000 TO 116000 THE IRS IS SHUFFLING ITS 13 FUNCTIONS INTO SIX GROUPS COMPLIANCE FINANCES ADMINISTRATION TAXPAYER SERVICES INFORMATION TECHNOLOGY AND PLANNING AND COMMUNICATIONS IN 18 MONTHS 1000 OF 8000 JOB SLOTS IN WASHINGTON AND 700 TO 800 IN REGIONAL OFFICES ARE TO BE ASSIGNED TO FRONTLINE OFFICES ONE AIM IS BETTER RESEARCH ON HOW TO IMPROVE COMPLIANCE LATER THE IRS PLANS TO REORGANIZE ITS SEVEN REGIONS INTO FIVE A PLAN TO AID INDIANS SHOWS HOW LATE ADDITIONS CAN SNARL TAX BILLS AFTER CURSORY DISCUSSION THE SENATE ADDED TO ITS BILL A PROPOSAL BY SENS MCCAIN R ARIZ AND INOUYE D HAWAII TO PROMOTE NONGAMBLING JOBS ON INDIAN RESERVATIONS THE MEASURE WOULD PROVIDE CREDITS FOR CREATING JOBS AND FOR INVESTING IN FACILITIES THE ESTIMATED COST IS MODEST 209 MILLION OVER FIVE YEARS BUT THE COMPANION PROPOSAL TO PROVIDE OFFSETTING REVENUE IS SNAGGED ON AN ALREADY CONTROVERSIAL MEASURE TO TRIM FAVORS FOR PUERTO RICO PRESIDENT CLINTON WANTS TO CUT BACK THE CREDIT FOR COMPANIES OPERATING IN US POSSESSIONS CRITICS SAY THAT COULD CRUSH PUERTO RICO'S ECONOMY THE SENATE BILL WOULD TRIM THE TOTAL CREDITS BY 375 BILLION THE INDIANRESERVATION MEASURE WAS MEANT TO CUT JUST 212 MILLION MORE BUT A DRAFTING SLIP HAS MADE IT UNCLEAR JUST WHAT THE EFFECT WOULD BE APART FROM THE FACT THAT MANY SENATORS WEREN'T AWARE OF THE CONNECTION BETWEEN THE INDIAN AND PUERTO RICO SECTIONS THE MATTER BECOMES ANOTHER SMALL GLITCH FOR THE TAXBILL CONFERENCE COMMITTEE TO SORT OUT EASIER THAN PULLING TEETH MANY NEW JERSEY DENTISTS WEREN'T PAYING SALES TAX ON OUTOFSTATE PURCHASES OF EQUIPMENT AND SUPPLIES SO THE STATE SENT OUT 7400 KITS EXPLAINING THE TAX AND REQUESTING SELF AUDITS THE OUTCOME SO FAR NEARLY 5300 RESPONSES COLLECTIONS OF 16 MILLION AND BILLINGS FOR 2 MILLION MORE INSIDE DIRECTORS OF CORPORATIONS WHO ARE EMPLOYEES AND NOT CONTROLLING OWNERS MAY RESUME PUTTING DIRECTOR FEES IN KEOGH RETIREMENT PLANS FOR THE SELFEMPLOYED SAYS SETH TIEVSKY OF ERNST & YOUNG CPAS THE IRS HAS WITHDRAWN PROPOSED RULES THAT INHIBITED SUCH PLAN CONTRIBUTIONS A VISIT TO THE US ON SIXMONTH VISAS WASN'T ENOUGH TO ESTABLISH RESIDENCY FOR THE PARENTS AND BROTHER OF MALGOZATA CAMILO OF NEW YORK THE TAX COURT SAYS SO SHE AND HER HUSBAND MAY NOT CLAIM THE THREE POLISH CITIZENS AS THEIR DEPENDENTS ON THEIR 1988 US RETURN A BUYOUT WITH THE COMPANY'S OWN CASH PRODUCES TAXFAVORED DIVIDENDS IN 1982 UNIROYAL INC WHICH LATER WAS LIQUIDATED SOLD ITS 50 OF A JOINT VENTURE TO ITS PARTNER IMPERIAL CHEMICAL BEFORE A BINDING PACT WAS REACHED THE VENTURE PAID A 165 MILLION DIVIDEND TO EACH PARENT TO UNIROYAL IN CASH TO IMPERIAL AS A NOTE DAYS LATER IMPERIAL BOUGHT UNIROYAL'S INTEREST FOR 145 MILLION UNIROYAL TREATED THE TWO TRANSACTIONS SEPARATELY THAT IS IT REPORTED THE DIVIDEND AS MOSTLY TAXEXEMPT UNDER THE RULES FOR CORPORATE SHAREHOLDERS BUT THE IRS CONTENDED THE DIVIDEND WAS PART OF THE STOCKSALE PACKAGE AND THUS WAS SUBJECT TO CAPITALGAINS TAX UNIROYAL APPEALED TO THE TAX COURT NOW JUDGE CHABOT HAS UPHELD UNIROYAL'S TREATMENT ALTHOUGH THE TWO PAYMENTS CAME CLOSELY TOGETHER THEY WERE SEPARATE IN FORM AND SUBSTANCE THE RULING IS IMPORTANT BECAUSE IT SHOWS A POSSIBLE PATH TO FAVORABLE TAX TREATMENT IN BUYOUTS SAYS ROBERT WELLEN A LAWYER AT FULBRIGHT & JAWORSKI IN WASHINGTON THE IRS HASN'T INDICATED WHETHER IT WILL APPEAL THE DECISION BRIEFS THE IRS'S COST OF COLLECTING 100 ROSE TO 58 CENTS IN FISCAL 1992 FROM 56 CENTS IN FISCAL 1991 TO EXPLAIN HOW IT FIGURES THE EFFECTS OF TAXLAW CHANGES ON VARIOUS INCOME GROUPS CONGRESS'S JOINT TAX COMMITTEE ISSUES A 118PAGE PAMPHLET WITH THREE PAGES OF BIBLIOGRAPHY NAME 9307070063 930707 JI KISLAK INC PLANS MERGER WITH FARRAGUT MORTGAGE IN EARLY FALL MIAMI LAKES FLA JI KISLAK INC A PRIVATELY HELD MORTGAGE BANKING COMPANY SAID IT AGREED TO MERGE WITH FARRAGUT MORTGAGE CO OF MANSFIELD MASS UNDER THE AGREEMENT OF WHICH THE COMPANIES DECLINED TO STATE A VALUE KISLAK'S SHAREHOLDERS WOULD OWN 889 OF THE MERGED ENTITY WHILE FARRAGUT MORTGAGE HOLDERS WOULD OWN 111 THE COMPANY WOULD ISSUE NEW PUBLICLY TRADED SHARES UNDER THE KISLAK NAME THE BOARD WOULD CONSIST OF KISLAK'S CURRENT EIGHT DIRECTORS AND ONE FARRAGUT DIRECTOR KISLAK SAID IN TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE FARRAGUT SHARES CLOSED AT 625 UP 125 CENTS KISLAK SAID THE COMBINED COMPANIES WOULD SERVICE 180000 MORTGAGES TOTALING MORE THAN 12 BILLION THE COMPANIES ALSO EXPECT TO ORIGINATE MORE THAN 5 BILLION ANNUALLY IN RESIDENTIAL LOANS KISLAK SAID THE MERGER IS SUBJECT TO CONDITIONS INCLUDING SECURITIES AND EXCHANGE COMMISSION REGULATIONS AND APPROVAL BY THE COMPANIES' STOCKHOLDERS THE MERGER EXPECTED TO CLOSE IN EARLY FALL IS INTENDED TO QUALIFY AS A TAXFREE REORGANIZATION AND POOLING OF INTERESTS KISLAK SAID THE DIRECTORS OFFICERS AND CERTAIN STOCKHOLDERS OF FARRAGUT MORTGAGE WHO OWN ABOUT 40 OF FARRAGUT STOCK OUTSTANDING AND JAY I KISLAK THE PRINCIPAL CONTROLLING STOCKHOLDER OF KISLAK HAVE AGREED TO VOTE FOR THE MERGER 9307070062 930707 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 1/4 HIGH 3 1/16 LOW 3 1/8 NEAR CLOSING BID 3 3/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 306 30 TO 59 DAYS 307 60 TO 89 DAYS 308 90 TO 119 DAYS 312 120 TO 179 DAYS 313 180 TO 229 DAYS 327 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 316 60 DAYS 318 90 DAYS CERTIFICATES OF DEPOSIT 261 ONE MONTH 266 TWO MONTHS 270 THREE MONTHS 288 SIX MONTHS 303 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 315 THREE MONTHS 325 SIX MONTHS BANKERS ACCEPTANCES 302 30 DAYS 303 60 DAYS 304 90 DAYS 308 120 DAYS 312 150 DAYS 319 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 ONE MONTH 3 1/4 THREE MONTHS 3 7/16 SIX MONTHS 3 5/8 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 695 60 DAYS 702 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 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 267 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9307070061 930707 LETTERS TO THE EDITOR BUMPED PASSENGERS CAN SUE THE BUMPERS YOUR JUNE 16 ASIDES EDITORIAL PAGE BUMPY FLIGHTS AHEAD COMPLAINS THAT A NINTH CIRCUIT CASE I HANDLED GIVES BUMPED PASSENGERS THE GOAHEAD TO SUE AIRLINES THUS SUGGESTING THAT A NEW RIGHT HAS BEEN CREATED NOT SO PASSENGERS HAVE HAD THAT RIGHT UNDER FEDERAL OVERBOOKING RULES FOR THE PAST 30 YEARS AS AN ALTERNATIVE TO ACCEPTING CASH ON THE SPOT OR MORE RECENTLY A FREE TICKET FOR A FUTURE TRIP THE NINTH CIRCUIT PRESERVED THAT STATUS QUO BY REJECTING AN AIRLINE ARGUMENT THAT THE LITIGATION OPTION WAS ELIMINATED WHEN CONGRESS PASSED THE AIRLINE DEREGULATION ACT 15 YEARS AGO THE COURT HELD THAT THIS LAW DID NOT BROADLY PREEMPT A PASSENGER'S RIGHTS UNDER STATE TORT AND CONTRACT LAWS WHICH PROVIDE REMEDIES TO PASSENGERS IN MANY SITUATIONS INCLUDING AIR CRASHES FOR BUMPED PASSENGERS CASH OR A FREE TICKET IS OFTEN A GOOD DEAL BUT NOT ALWAYS THAT IS WHY FEDERAL BUMPING RULES GIVE PASSENGERS A CHOICE AND THE NINTH CIRCUIT FOUND NO BASIS TO OVERTURN THAT DECISION 9307070060 930707 EXNECO CHAIRMAN IS CONVICTED OF FRAUD IN CREDIT UNION SCAM PROVIDENCE RI DAVID F LAROCHE FORMER CHAIRMAN OF NECO ENTERPRISES INC WAS CONVICTED OF OBTAINING 45 MILLION IN LOANS UNDER FALSE PRETENSES FROM NOWFAILED RHODE ISLAND CREDIT UNIONS THE STATE'S PROSECUTORS HAD PORTRAYED MR LAROCHE AS ONE OF THE INSIDE PLAYERS WHOSE DEALINGS HELPED CAUSE THE CLOSING OF 45 CREDIT UNIONS AND BANKS IN 1991 IN ONE OF THE BIGGEST MASS CLOSINGS SINCE THE DEPRESSION MOST OF THE DEPOSITORS WHO TEMPORARILY WERE UNABLE TO GET THEIR MONEY HAVE SINCE BEEN REPAID A STATE SUPERIOR COURT JURY FOUND MR LAROCHE GUILTY OF FIVE OF THE SEVEN FRAUD AND CONSPIRACY COUNTS AGAINST HIM HE FACES AS MANY AS 10 YEARS IN PRISON FOR EACH OF THE GUILTY VERDICTS MICHAEL BURNS CHIEF OF SPECIAL PROSECUTION SAID THAT IN 1988 MR LAROCHE USED BUSINESS ASSOCIATES AS FRONT MEN TO OBTAIN A 19 MILLION LOAN FROM RHODE ISLAND CENTRAL CREDIT UNION AND LOANS TOTALING 26 MILLION FROM DAVISVILLE CREDIT UNION THE LOANS ALLEGEDLY WERE USED TO BUY A CONDOMINIUM A TRAILER PARK COMPANY AND HELP SUPPORT MR LAROCHE'S VARIOUS BUSINESS INTERESTS NECO ENTERPRISES OF WHICH HE WAS CHAIRMAN WAS A UTILITY AND REAL ESTATE HOLDING COMPANY MR BURNS SAID MR LAROCHE WAS ACQUITTED ON TWO CHARGES RELATED TO A SMALLER 240000 LOAN MR LAROCHE AND HIS ATTORNEY COULDN'T BE REACHED FOR COMMENT 9307070059 930707 LETTERS TO THE EDITOR MAKING A GOOD PRODUCT IN THE GOOD OLE USA I WAS MUCH AMUSED BY THE SELFRIGHTEOUS BLEATINGS AND RATIONALIZATIONS IN YOUR MAY 28 ARTICLE ON STRIDE RITE'S MOVE TO OFFSHORE MANUFACTURING NIKE'S SPOKESMAN CONTENDS THAT IT IS IMPOSSIBLE TO MAKE ATHLETIC SHOES IN THE US AT A COMPETITIVE PRICE YET THE DANIEL GREEN CO OF DOLGEVILLE NY MAKES EXCELLENT SNEAKERS CALLED GREEN SPORTS RIGHT HERE IN AMERICA AND SELLS THEM FOR LESS THAN THE MAJOR CHEAPLABOR COMPANIES STRIDE RITE'S CHAIRMAN MAINTAINS THAT MAKING EVEN LEATHER SHOES HERE IS NOT ECONOMICALLY FEASIBLE DANIEL GREEN'S OUTDORABLES PROVE HIM WRONG AS DO ITS FAMOUS SLIPPERS THE ECONOMIC BOTTOM LINE IS THAT LABOR REPRESENTS ONLY 20 TO 30 OF THE COST OF A PAIR OF SHOES AT THE DANIEL GREEN CO OF WHICH I AM A DIRECTOR WE DO NOT BELIEVE THAT SAVINGS IN THIS AREA COMPENSATE FOR THE TREMENDOUS LOSS OF QUALITY TO WHICH THE USE OF FOREIGN CONTRACT LABOR INEVITABLY LEADS IN ADDITION MATERIALS ARE BETTER HERE LAND AND EQUIPMENT ARE LESS EXPENSIVE AND WE ARE CLOSER TO OUR CUSTOMERS WE FEEL WE CAN DO RIGHT BY OUR EMPLOYEES AND OUR STOCKHOLDERS BY MANUFACTURING IN THE GOOD OLD US 9307070058 930707 INTERNATIONAL REPORTERS' NOTEBOOK SUMO CHAMPION MAKES PITCH FOR HIS ADOPTIVE JAPAN BY JOHN BUSSEY AND MICHAEL WILLIAMS STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPAN HAS A SUGGESTION FOR HOW TO CRACK THIS NATION'S TOUGH MARKET SAY YES TO BETWEENMEAL SNACKS JAPAN'S FOREIGN MINISTRY HAS CUT AN INSPIRATIONAL TV COMMERCIAL ABOUT THE NATION AND BY INTIMATION ITS MARKETTIMED TO RUN ON MTV AND CNN DURING THIS WEEK'S TOKYO SUMMIT OF THE SEVEN LEADING INDUSTRIALIZED COUNTRIES IT STARS AKEBONO JAPAN'S CHAMPION SUMO WRESTLER WHO IN HIS HOME STATE OF HAWAII IS KNOWN AS CHAD ROWAN BY DEMONSTRATING THAT A FOREIGNER ACHIEVED WHAT EVERYBODY THOUGHT WAS IMPOSSIBLE TO DO IN THAT SEGMENT OF JAPANESE SOCIETY IT IS VERY ENCOURAGING FOR THOSE WANTING TO GO INTO THE JAPANESE MARKET SAYS MARI AMANO A MINISTRY SPOKESMAN DON'T EXPECT THE 24YEAROLD 473POUND AKEBONO TO ROCK THE BOAT IN HIS PITCH FOR THE NATION THE JAPANESE PEOPLE THEY HAVE A LOT OF DIGNITY AND PRIDE IN WHAT THEY DO HE SAYS IN THE AD TO ME I FEEL THE JAPANESE PEOPLE THEY ARE ONE OF THE ONLY CULTURES THAT KEEP THEIR CULTURE ALIVE LIKE SUMO AMERICAN BUSINESS MIGHT CONCLUDE SOMETHING ELSE FROM THE AD REASONS MR AMANO THERE SHOULD BE SELFEFFORT TO REALIZE WHAT HE REALIZED SOME SELFHELP RATHER THAN CLAIMING THAT OTHERS ARE AT FAULT HE SAYS TO ROUND OUT ITS PUBLIC RELATIONS CAMPAIGN THE MINISTRY IS ALSO HANDING OUT A POPULAR JAPANESE NOVEL TO REPORTERS COVERING THE SUMMIT KITCHEN BY BANANA YOSHIMOTO IT CHRONICLES THE LIFE OF A YOUNG JAPANESE WOMAN WITH A KITCHEN FETISH WHO'S AT HOME ON THE RANGE AND THE GARBAGE DISPOSAL AND THE MICROWAVE SHE SLEEPS ON HER KITCHEN FLOOR AND FINDS INNER PEACE WHEN SCRUBBING HER SINK NO TALE OF DOMESTIC BLISS THIS THE HEROINE'S FRIEND A TRANSVESTITE IS BRUTALLY MURDERED IN A BAR ROOM THERE SHOULD BE SOME ELEMENT IN HER BOOK THAT CAN BE SHARED NOT ONLY BY JAPANESE BUT BY THE YOUNGER GENERATION ALL OVER THE WORLD SAYS MR AMANO AFTER A PAUSE HE ADDS I DON'T KNOW WHAT MR AMANO IS QUICK TO POINT OUT THAT THE MINISTRY BOUGHT 800 COPIES OF THE ENGLISHLANGUAGE TRANSLATION OF KITCHEN AND SHIPPED THEM TO JAPAN FROM THE US THE MESSAGE THIS TIME JAPAN HE SAYS IS INDEED IMPORTORIENTED PRESIDENT CLINTON IS SCHEDULED TO GIVE A SPEECH AT WASEDA UNIVERSITY IN TOKYO TODAY HE HAS A HARD ACT TO FOLLOW ROBERT F KENNEDY MADE A SIMILAR VISIT IN 1962 WHEN HE WAS US ATTORNEY GENERAL USJAPAN RELATIONS WERE TENSE BACK THEN TOO CHIEFLY BECAUSE OF A CONTROVERSIAL SECURITY PACT THE TWO HAD SIGNED LEFTLEANING STUDENTS DISRUPTED RFK'S TALK AND ATTEMPTED TO SHOUT HIM DOWN BUT HE DEFUSED THE TENSION EARNING THE RESPECT OF MANY JAPANESE BY SINGLING OUT THE HECKLERS INVITING ONE UP ON STAGE AND SUGGESTING THE STUDENT ASK HIM QUESTIONS ABOUT US INTENTIONS IN THE REGION THAT DONE AND THE QUESTIONS ANSWERED MR KENNEDY RESUMED HIS TALK WHILE MR CLINTON IS GIVING SPEECHES AND TALKING TRADE HIS WIFE HILLARY HAS THE OPTION OF ATTENDING A SPOUSES FUNCTION TOMORROW THE BIG ATTRACTION A STATEOFTHEART INCINERATOR THE TOKYO CITY GOVERNMENT WANTS TO SHOW OFF JAPAN HOPES THE DEMONSTRATION WILL HIGHLIGHT ITS ATTENTION TO ENVIRONMENTAL ISSUES IS THE PRESIDENT HEDGING HIS BETS MR CLINTON TUESDAY NIGHT ATTENDED A RECEPTION AT THE US AMBASSADOR'S RESIDENCE IN TOKYO WHERE THE GUEST LIST INCLUDED THE USUAL ESTABLISHMENT BUSINESS AND GOVERNMENT LUMINARIES BUT THERE WERE ALSO LEADERS OF THE NEW OPPOSITION PARTIES IN JAPAN WHO HOPE TO UNSEAT THE LONGRULING LIBERAL DEMOCRATIC PARTY IN ELECTIONS JULY 18 MR CLINTON NOTED ONE TELEVISION COMMENTATOR IS LOOKING AHEAD AT ONE POINT ACCORDING TO THOSE IN ATTENDANCE MR CLINTON INTRODUCED OPPOSITION PARTY LEADER TSUTOMU HATA TO HIS WIFE AND SAID THIS BOY IS CAMPAIGNING AFTER MR HATA COMMISERATED WITH THE PRESIDENT ABOUT THEIR COMMON AFFLICTION LARYNGITIS HE RECOMMENDED A JAPANESE HOME REMEDY BOILED BEAN JUICE TALK ABOUT TIMING JUST HOURS BEFORE MR CLINTON ARRIVED TO WRESTLE WITH JAPAN OVER ITS VAST TRADE SURPLUS TOYOTA MOTOR CORP RELEASED THIS NEWS THE AUTO MAKER SAID IT IMPORTED 3015 BILLION YEN 279 BILLION WORTH OF CARS PARTS AND MATERIALS IN THE LATEST BUSINESS YEAR A SHADE MORE THAN ITS TARGET ABOUT 11 BILLION OF THAT CAME FROM THE US INCLUDING GOODS FROM TOYOTA'S US OPERATIONS THEN THERE WAS THIS ANNOUNCEMENT BY A JAPANESE AUTOIMPORTERS GROUP JAPANESE IMPORTS OF USMADE CARS ROSE 86 IN JUNE FROM A YEAR EARLIER TO 6386 CARS BUT CARS MADE IN THE US BY HONDA MOTOR CO AND TOYOTA ACCOUNTED FOR ALMOST THE ENTIRE GAIN 9307070057 930707 ECONOMY COSTS OF MIDWEST FLOOD REIMBURSEMENT TO FALL LARGELY ON US NOT INSURERS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL ALTHOUGH THE ECONOMIC TOLL OF THE MIDWEST FLOODING WILL BE EXTENSIVE THE COST OF REIMBURSING HOMEOWNERS AND BUSINESSES WILL FALL LARGELY ON THE FEDERAL GOVERNMENT INSTEAD OF INSURANCE COMPANIES THAT IS BECAUSE INSURERS GENERALLY DON'T COVER FLOOD DAMAGE BUT THEY WILL SHARE IN SOME OF THE COSTS BECAUSE OF RELATED COVERAGE SUCH AS CLAIMS ARISING FROM WIND HAIL AND TORNADOES INSURANCE EXPERTS SAY CERTAIN REGIONAL INSURANCE COMPANIES THAT WRITE A LOT OF BUSINESS IN THE FLOODED AREAS COULD SUSTAIN HEAVY LOSSES ON THE STORMS BUT MAJOR INSURERS ARE UNLIKELY TO FEEL MUCH IMPACT SO FAR THE TAB FOR INSURERS IS ABOUT 100 MILLION STEMMING THE RELATED EFFECTS OF THE FIRST WAVE OF STORMS IN MIDJUNE ACCORDING TO THE PROPERTYCLAIMS SERVICE OF THE AMERICAN INSURANCE SERVICES GROUP AN INSURANCEINDUSTRY GROUP THOSE STORMS HIT FIVE STATES AND OCCURRED JUNE 17 THROUGH JUNE 19 THE NEXT WAVE HIT EIGHT STATES AND OCCURRED JUNE 27 THROUGH SATURDAY ALTHOUGH THOSE STORMS LASTED LONGER AND COVERED MORE TERRITORY IT'S TOO EARLY TO SAY WHETHER THEY CAUSED MORE THAN 100 MILLION IN ADDITIONAL LOSSES SAID GARY KEARNEY WHO DIRECTS CATASTROPHE SERVICES FOR THE CLAIMS SERVICE WHATEVER THE LOSS IS IT IS LIKELY TO PALE BESIDE THE 17 BILLION OF INSURED LOSSES CAUSED BY HURRICANE ANDREW AND 163 BILLION CAUSED BY THE MARCH BLIZZARD ON THE EAST COAST HURRICANES AND OTHER MAJOR DISASTERS OFTEN PROMPT INSURANCE COMPANIES TO TRANSFER EXTRA INSURANCE ADJUSTERS TO AFFECTED AREAS BUT STATE FARM MUTUAL INSURANCE CO OF BLOOMINGTON ILL THE NATION'S LARGEST PROPERTY INSURER HASN'T BEEFED UP ITS FORCES FOR THE FLOODING THIS DOESN'T SEEM TO BE MAJOR IN TERMS OF NUMBERS A SPOKESMAN SAID BECAUSE INSURANCE COMPANIES FIND IT HARD TO SPREAD THE RISKS OF FLOOD INSURANCE THEY HAVE ABANDONED THE MARKET AND LEFT IT TO THE FEDERAL GOVERNMENT THE FEDERAL FLOOD INSURANCE PROGRAM PART OF THE FEDERAL EMERGENCY MANAGEMENT AGENCY HAS ABOUT 14900 POLICIES IN COUNTIES THREATENED BY THE FLOODS IT'S TOO EARLY TO SAY HOW MANY CLAIMS WILL BE GENERATED ON THOSE POLICIES THERE'S VERY LITTLE YOU CAN DO UNTIL THE WATER GOES DOWN A SPOKESMAN SAID HOMEOWNERS AND BUSINESSES THAT DIDN'T BUY FLOOD INSURANCE WILL HAVE TO RELY ON WHATEVER DISASTER RELIEF FEDERAL AND STATE GOVERNMENTS CHOOSE TO PROVIDE OVER THE WEEKEND PRESIDENT CLINTON SPEAKING IN IOWA ANNOUNCED HE WOULD MAKE AVAILABLE 397 MILLION IN DISASTER FUNDS AND THAT HE WOULD SEEK EVEN MORE MONEY FROM CONGRESS THE DEPARTMENT OF AGRICULTURE ALSO SELLS FLOOD INSURANCE TO FARMERS THE DEPARTMENT ALSO HAS A DISASTER RELIEF FUND FOR THOSE WITHOUT INSURANCE YESTERDAY AGRICULTURAL SECRETARY MIKE ESPY ANNOUNCED EASING ELIGIBILITY REQUIREMENTS FOR CERTAIN FEDERAL PROGRAMS THAT WOULD HELP FARMERS WHO SUFFERED FLOOD DAMAGE EXPERTS HAVE ESTIMATED THAT MILLIONS OF ACRES OF CORN AND SOYBEANS IN IOWA WISCONSIN MINNESOTA AND SOUTH DAKOTA HAVE BEEN LOST 9307070055 930707 LETTERS TO THE EDITOR STEERING A FIRM COURSE OVER TROUBLED WATERS YOUR MAY 17 ARTICLE ON GREAT WESTERN FINANCIAL CORP WAS BIZARRE THE ARTICLE SUMMARIZED THAT GREAT WESTERN WAS ADRIFT AND THAT ITS CHIEF EXECUTIVE JAMES MONTGOMERY WAS SOMEHOW RESPONSIBLE YOU MUST HAVE HAD SOME OTHER COMPANY AND SOME OTHER CHIEF EXECUTIVE IN MIND FOR EXAMPLE AMID THE DISASTER THAT ENGULFED THE SAVINGSANDLOAN INDUSTRY OVER THE PAST NUMBER OF YEARS I BELIEVE IT WAS MR MONTGOMERY WHO 1 STEERED A FIRM STEADY CONSERVATIVE COURSE THROUGH THE DEBRIS AND KEPT GREAT WESTERN SOLVENT HEALTHY AND PROFITABLE 2 HELPED CREATE AND MARKET THE INNOVATIVE MONTHLY ADJUSTABLE MORTGAGE A BUSINESS MIRACLE OF ITS TIME 3 BUILT A HIGHLY RESPECTED AND ABLE MANAGEMENT TEAM IN DEPTH 4 ACQUIRED A PROFITABLE WELLMANAGED NATIONWIDE CONSUMER FINANCE COMPANY TO DIVERSIFY ITS INCOME BASE 5 DEVELOPED A GROWING INCOME STREAM FROM ITS INNOVATIVE RETAIL BANKING SECTOR 6 CREATED A PROFITABLE SECURITIES BUSINESS 7 INCREASED AND MAINTAINED AN UNINTERRUPTED HEALTHY CASH DIVIDEND FOR STOCKHOLDERS NOW HAS GREAT WESTERN SHARED THE WOES OF THE DEEPEST REALESTATE RECESSION IN CALIFORNIA'S HISTORY OF COURSE GREAT WESTERN IS IN THE BUSINESS OF FINANCING RESIDENTIAL REAL ESTATE AND HAS HAD MORE THAN ITS SHARE OF PROBLEMS ALONG WITH EVERY OTHER FINANCIAL INSTITUTION IN AND OUT OF THE STATE BUT GREAT WESTERN ALSO HAS ACCUMULATED SOLID RESERVES TO DEAL WITH ITS DIFFICULTIES AND IS DISPOSING OF ITS PROBLEM ASSETS IN A CONSISTENT PRUDENT MANNER 9307070054 930707 CORPORATE FOCUS AT 227 YEARS OLD CHRISTIE'S IS UNDERGOING A FACE LIFT ARTAUCTION HOUSE BOOSTS ASSETS TARGETS ARCHRIVAL AND FOCUSES ON PROFIT BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL LONDON CHRISTOPHER DAVIDGE CHIEF EXECUTIVE OFFICER OF CHRISTIE'S INTERNATIONAL PLC STEPS OUT ON THE FOURTHFLOOR FIRE ESCAPE OF THE COMPANY'S LONDON HEADQUARTERS GRINS THROWS HIS ARMS OPEN WIDE AND WAVES AT THE BLOCKWIDE SWATH OF TOWN HOUSES SURROUNDING CHRISTIE'S WE OWN IT ALL NOW HE SAYS HIS BOAST IS AT THE HEART OF THE SWEEPING CORPORATE RETRENCHMENT AT THE WORLD'S SECONDLARGEST ARTAUCTION HOUSE RACKED BY RECESSION CHRISTIE'S HAS NONETHELESS TAKEN ADVANTAGE OF FIRESALE REALESTATE PRICES TO SNAP UP EVERY BUILDING ON THE BLOCK IT'S LANDLORD TO ABOUT 20 ART DEALERSHIPS AND IN APRIL BECAME OUTRIGHT OWNER OF SPINK & SON A WELLKNOWN COIN AND ASIAN ART DEALER THAT WILL SPEARHEAD CHRISTIE'S EXPANSION INTO THE GROWING SOUTHEAST ASIAN MARKET IN THE PAST YEAR CHRISTIE'S SINGLE LARGEST CORPORATE ASSET HAS BECOME 1401 MILLION IN REAL ESTATE AND LEASES THE UNCHARACTERISTIC RUSH INTO LAND ARTDEALING AND THE PACIFIC RIM IS PART OF A RADICAL OVERHAUL THAT WOULD BE ALMOST UNHEARD OF AT MOST COMPANIES OF CHRISTIE'S 227YEAR VINTAGE BUT SINCE THE ART MARKET CRASH OF 1990 AND ITS OWN SUBSEQUENT SLIDE IN PROFITABILITY CHRISTIE'S HAS BEEN SOULSEARCHING AND BELTTIGHTENING IT SLASHED STAFF BY 300 OR 20 IT PUT BANKERS AND BUSINESS PEOPLE NOT ART EXPERTS AS EXPECTED AT ITS TOP RUNGS AND LAST YEAR GAVE CLIENTS 50 MILLION IN ADVANCES AND LOANS AGAINST ART IT REORGANIZED INTO DIVISIONS ALONG PRODUCT RATHER THAN GEOGRAPHIC LINES TO QUASH TURF WARS FOR AUCTION PROPERTY IT SKEWED DOWNSCALE TO CAPTURE YOUNG BUYERS AUCTIONING 1950S LUNCH BOXES IN NEW YORK AND TOY SOLDIERS IN SOUTH KENSINGTON AND IT HAS TAKEN OFF THE WHITE GLOVES TO BATTLE ITS ARCHRIVAL OF CENTURIES SOTHEBY'S HOLDINGS INC IS IT WORKING CHRISTIE'S 1992 PRETAX PROFIT WAS 111 MILLION A FAINT SHADOW OF THE 1077 MILLION PRETAX PROFIT EARNED IN 1989 AT THE HEIGHT OF THE BOOM THIS YEAR'S AUCTION TOTALS ARE RUNNING AHEAD OF LAST YEAR'S PACE BUT ONE OF THE FIRM'S MOST LUCRATIVE SALES IS ON THE VERGE OF COLLAPSE ON MAY 19 A 19THCENTURY WINDUP CALCULATOR EXPECTED TO BRING ABOUT 30000 SOLD FOR A RECORDSMASHING 118 MILLION TO ZURICH COLLECTOR EDGAR MANNHEIMER CHRISTIE'S ADMITTED MONDAY THAT WE HAVE BECOME INCREASINGLY CONCERNED BECAUSE HE HASN'T PAID FOR IT ON THE OTHER HAND CHRISTIE'S SET ANOTHER RECORD MONDAY FOR AN OLD MASTER DRAWING THE J PAUL GETTY MUSEUM PAID 63 MILLION FOR A WORK BY MICHELANGELO CHRISTIE'S OWN INVESTMENT BANKER SG WARBURG SECURITIES INC HAS A HOLD RECOMMENDATION ON ITS SHARES NONETHELESS ACCORDING TO LORNA TILBIAN A WARBURG ANALYST THE PICTURE IS IMPROVING CHRISTIE'S HAS CUT COSTS DRAMATICALLY AND HAS BECOME A LEANER MORE FOCUSED ORGANIZATION CHRISTIE'S IS REINVENTING THE WHEELRATHER THE AUCTION BLOCKPRECISELY BECAUSE IT ALWAYS HAS BEEN NO 2 CHRISTIE'S AND NEW YORKBASED SOTHEBY'S CARVE UP ROUGHLY 98 OF THE WORLD AUCTION MARKET FOR ART AND ANTIQUES WITH THE LATTER GENERALLY GETTING A 51 SHARE TO CHRISTIE'S 47 THE GENTLEMANLY RIVALRY HAS TAKEN A NASTY TURN CHRISTIE'S HAS SENT LETTERS TO CLIENTS QUESTIONING THE STABILITY OF SOTHEBY'S IMPRESSIONIST PAINTINGS DEPARTMENT ITS BROCHURES HAVE OFFERED HEADTOHEAD COMPARISONS OF AUCTION RESULTS IN AN UNCUSTOMARY RAID CHRISTIE'S HIRED AWAY SOME OF SOTHEBY'S MORE PROMINENT ART EXPERTS INCLUDING HUGUES JOFFRE TO HEAD ITS WORLDWIDE 20TH CENTURY ART DEPARTMENT IT RELEASED REVENUE FIGURES THAT EXCEEDED SOTHEBY'S THE NEW YORK FIRM CRIED FOUL NOTING THE CHRISTIE'S TOTAL INCLUDED PRIVATE SALES OF ART NOT AT AUCTION THEY'VE CERTAINLY GOTTEN MORE AGGRESSIVE SAYS DIANA D BROOKS SOTHEBY'S WORLDWIDE HEAD OF AUCTION SALES BUT WHETHER OR NOT THAT SUCCEEDED IS CERTAINLY UP FOR QUESTION SHE SAYS CITING SOTHEBY'S STRONG SALES FOR ART IN THE FIRST SIX MONTHS OF 1993 INCLUDING A SALE BY ITS IMPRESSIONIST DEPARTMENT OF A PAUL CEZANNE PAINTING FOR 286 MILLION YOU'VE GOT TWO GREAT FIRMS AND OVER THE LONG HAUL THE BEST WAY TO COMPETE IS GRACEFULLY BUT CHRISTIE'S MAY BE GOING AFTER SOTHEBY'S INVESTORS ITS STOCK HAS BECOME AVAILABLE AS A SPONSORED AMERICAN DEPOSITARY RECEIPT AND IT'S SKITTISHLY COURTING US INVESTORS CHRISTIE'S STORY NO DEBT A STERLING BRAND NAME AND MORE WILLINGNESS TO SHAKE UP THE OLDGUARD BUSINESS THAN ITS RIVAL IS SHOWING AT AROUND 297 A SHARE CHRISTIE'S STOCK IS AT THE HIGHER END OF ITS 12MONTH RANGE OF 136 TO 307 IT HAD BEEN AS HIGH AS 614 IN JUNE 1990 SOTHEBY'S TRADES AT ABOUT 1250 A SHARE BUT HAS BEEN MAROONED AROUND THAT LEVEL FOR THREE YEARS SOTHEBY'S CLOSED YESTERDAY AT 1250 DOWN 125 CENTS IN NEW YORK STOCK EXCHANGE TRADING CHRISTIE'S SHARES WERE UP SIX PENCE TO 197 297 IN LATE OVERTHECOUNTER TRADING NONETHELESS CHRISTIE'S HAS TEMPORARILY SHELVED PLANS FOR A ROAD SHOW TO US INVESTORS DESPITE ENCOURAGING RESULTS AT RECENT IMPRESSIONIST PAINTINGS AUCTIONS CEO DAVIDGE SAYS HE CAN'T ANSWER THE KEY QUESTION OF WHETHER THE ART MARKET IS BACK SOME CHRISTIE'S EMPLOYEES FIND THE NEW BOTTOMLINEORIENTED CORPORATE CULTURE DISQUIETING AND ARGUE THAT TOO MANY CORNERS MAY BE CUT THIS SPRING THREE PRICEY ARTWORKS HURRIEDLY ACCEPTED INTO SALES WERE YANKED FROM AUCTION WHEN THEY WERE SHOWN TO BE FAKES MOREOVER THESE DAYS THE RESUMES OF SOME OF CHRISTIE'S TOP EXECUTIVES LIST NOT MUSEUMS OR ART DEALERS BUT FIRST BOSTON CORP AND US TRUST CO LAST MAY SIR ANTHONY TENNANT FORMER CHAIRMAN OF GUINNESS PLC BECAME CHAIRMAN AND TIM HIRSCH WHO HAD SERVED SUCCESSFULLY AS HEAD OF CHRISTIE'S STAMP DEPARTMENT WAS NAMED MANAGING DIRECTOR OF SPINK & SON DESPITE LITTLE BACKGROUND IN ASIAN ART MR DAVIDGE THE FIRST CHRISTIE'S HEAD IN DECADES TO BE NEITHER BLUEBLOODED NOR ETONEDUCATED IS GETTING PERSONALLY INVOLVED IN THE CUTTHROAT NEGOTIATIONS FOR ESTATES AND PRIZED COLLECTIONS A ROLE PREVIOUSLY LEFT TO THE CHIEF OF THE APPROPRIATE ART DIVISION AS CEO I CAN CUT THE NEGOTIATING TIME QUITE CONSIDERABLY HE SAYS I CAN GET THROUGH TO THE DECISION MAKERS A RECENT COUP CHRISTIE'S WILL SELL 6 MILLION IN ART AND FURNITURE FROM THE ESTATE OF BALLET LEGEND RUDOLF NUREYEV CHRISTIE'S ALSO HAS GOTTEN MORE DARING FINANCIALLY IT BET ON ITS OWN AUCTION RESULTS BY GUARANTEEING SELLERS OF A FEW TOP COLLECTIONS A MINIMUM PRICE A SWITCH IN POLICY THAT HASN'T ALWAYS BENEFITED ITS BOTTOM LINE IN OTHER CASES CHRISTIE'S MADE RISKY LOANS AGAINST ART IN WHICH IT HAD NO LEGAL RECOURSE TO OTHER ASSETS IF THE ART DIED ON THE AUCTION BLOCK WE'RE NOT KEEN ON SUCH LOANS AND GUARANTEES SAYS CHRISTIE'S CHIEF FINANCIAL OFFICER DAVID TYLER BUT AN INCREASING NUMBER OF CLIENTS WISH TO HAVE SOME OF THE PROCEEDS UP FRONT THE NEW YORK DEPARTMENT OF CONSUMER AFFAIRS ISN'T KEEN ON THEM EITHER IT'S LOOKING INTO NEW AUCTIONHOUSE LOAN POLICIES 9307070053 930707 WORLD MARKETS TOKYO STOCKS CLIMB IN THIN ACTIVITY AS INVESTORS AWAIT G7 SESSION LONDON FRANKFURT POST GAINS A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS POSTED HEALTHY GAINS ON ANEMIC VOLUME TUESDAY AS MOST INVESTORS REMAINED SIDELINED AHEAD OF THE GROUP OF SEVEN INDUSTRIAL NATIONS' SUMMIT IN JAPAN THAT STARTS WEDNESDAY LONDON SHARES FIRMED ON BARGAINHUNTING FRANKFURT EQUITIES ROSE ON SPECULATION ABOUT FURTHER GERMAN RATE CUTS WHICH ALSO BOOSTED SOME OTHER EUROPEAN BOURSES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10483 DOWN 025 REFLECTING DECREASES IN MARKETS IN THE AMERICAS AND EUROPE AND A RISE IN ASIA/PACIFIC MARKETS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 13395 UP 820 OR 65 WITH KUALA LUMPUR KEPONG OF MALAYSIA POSTING A 15 GAIN IN ITS LOCAL CURRENCY COMPUTERS TRAILED AT 8051 DOWN 216 OR 26 WITH TANDEM OF THE US SLIDING 14 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH EDGED UP 160 POINTS MONDAY CLIMBED 20672 OR 11 TO 1982978 NEAR THE INTRADAY HIGH OF 1983338 ON WEDNESDAY IN TOKYO THE NIKKEI FELL 5250 POINTS TO CLOSE THE MORNING SESSION AT 1977728 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT A THIN 180 MILLION SHARES UP FROM THE PREVIOUS DAY'S 1407 MILLION SHARES THE LOWEST LEVEL THIS YEAR ADVANCING ISSUES OUTNUMBERED RETREATING ISSUES 555397 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH SLIPPED 061 POINT MONDAY GAINED 748 TO 159290 MOST OF THE GAINS CAME IN THE FIRST HALFHOUR OF TRADING WITH RESILIENT INDEX FUTURES LEADING STOCK PRICES HIGHER SHARES SPENT THE REST OF THE DAY WAFFLING AT FIRMER LEVELS SENTIMENT JELLED ON SPECULATION THAT THE BANK OF JAPAN WILL CUT ITS OFFICIAL DISCOUNT RATE THIS MONTH NEWS REPORTS FUELED THE RUMORS SAYING JAPAN WILL COMMIT ITSELF AT THE G7 SUMMIT TO SPURRING JAPANESE DEMAND THROUGH FISCAL AND MONETARY POLICIES THE EARLY STRENGTH IN INDEX FUTURES OWED TO BUYING BY INVESTMENT TRUST FUNDS LARGELY ON THE RATECUT TALK WHICH BOOSTED FINANCIAL STOCKS INVESTORS EXPECTED THE SUMMIT TO PUSH JAPAN INTO A FURTHER FISCAL STIMULUS THROUGH TAX CUTS OR LOWER INTEREST RATES EITHER OF WHICH COULD BENEFIT STOCKS ON TUESDAY JAPANESE PRIME MINISTER KIICHI MIYAZAWA AND FOREIGN MINISTER KABUN MUTO TOLD EUROPEAN COMMUNITY OFFICIALS THAT JAPAN IS SEEKING TO CUT ITS TRADE SURPLUSES BY EXPANDING DOMESTIC DEMAND BUT A FOREIGN MINISTRY OFFICIAL SAID JAPAN WASN'T INDICATING PLANS TO TAKE FURTHER ACTIONS TO STIMULATE ITS ECONOMY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 96 POINTS TO 28481 THE FT 30STOCK INDEX GAINED 97 POINTS TO 22350 VOLUME WAS 5543 MILLION SHARES COMPARED WITH 384 MILLION SHARES A DAY EARLIER INVESTORS TENTATIVELY MOPPED UP SOME BARGAINS AFTER THE 503POINT DECLINE FOR THE 100STOCK INDEX IN THE PREVIOUS TWO SESSIONS INVESTORS DIDN'T DISCERN ANY COMPELLING REASON FOR THE DROP A FIRM WALL STREET IN EARLY TRADING ALSO HELPED BUCK UP THE LONDON MARKET IN FRANKFURT THE DAX 30STOCK INDEX ADVANCED 870 POINTS TO 170087 ALSO THE INTRADAY HIGH THOUGH THE INDEX ONLY MOVED WITHIN A 4 1/2POINT BAND DURING THE QUIET SESSION ACTIVITY WAS SUPPORTED MAINLY BY SPECULATION THAT THE GERMAN BUNDESBANK CUT INTEREST RATES AGAIN BEFORE THE CENTRAL BANK'S SUMMER RECESS BEGINS LATE THIS MONTH THE RUMOR APPARENTLY ORIGINATED IN TOKYO AND SPREAD IN FRANKFURT FOLLOWING A SPEECH LATE MONDAY BY BUNDESBANK PRESIDENT HELMUT SCHLESINGER WHO SAID WESTERN GERMAN INFLATION ROSE AT AN AVERAGE 27 PACE OVER THE PAST THREE MONTHS ON AN ANNUALIZED AND SEASONALLY ADJUSTED BASIS HE INDICATED THIS FIGURE BRINGS GERMANY A STEP CLOSER TO AN INFLATION RATE THE BUNDESBANK WOULD FIND ACCEPTABLE A RISE IN JUNE UNEMPLOYMENT IN GERMANY DIDN'T AFFECT SHARE PRICES PARIS STOCKS RECOVERED FROM FIVE CONSECUTIVE SESSIONS OF LOSSES EDGING UP IN QUIET TRADING ON RISING HOPES THAT GERMANY MIGHT EASE RATES FURTHER AMSTERDAM PRICES ROSE BUOYED BY A FIRM US DOLLAR LONDON STOCKS' GAINS AND EXPECTATIONS THAT EUROPEAN INTEREST RATES WILL CONTINUE TO GO DOWN MILAN SHARE PRICES WEAKENED BROADLY IN SLUGGISH TRADING TECHNICAL FACTORS AND RUMORS OF NEW ARRESTS IN ITALY'S CORRUPTION SCANDAL DAMPED THE EFFECT OF MONDAY'S LONGAWAITED CUT IN ITALY'S DISCOUNT RATE TO 9 FROM 10 AND A WEEKEND ACCORD ON ITALIAN LABOR'S WAGES TWO EVENTS WITH AN IMPLICIT MESSAGE OF ECONOMIC RECOVERY PARTICIPANTS WERE PREOCCUPIED BY FACTORS SUCH AS POSITION ADJUSTMENTS AHEAD OF THE END OF THE JULY TRADING CYCLE NEXT WEEK AND THE RUMORS WHICH WERE DENIED THAT ANOTHER EXECUTIVE OF A STATE COMPANY HAD BEEN ARRESTED IN ZURICH BANKING SHARES LED THE MARKET SOLIDLY HIGHER AS EASING INTEREST RATES IN SWITZERLAND AND ELSEWHERE IN EUROPE CONTINUED TO ENCOURAGE BUYING ACTIVITY IN SYDNEY SHARE PRICES CLOSED MOSTLY LOWER BUT GOLD SHARES AGAIN BUCKED THE TREND CLIMBING ON A MODERATE RISE IN THE PRICE OF GOLD TAIPEI PRICES SOARED 36 ON NEWS THAT FORMOSA PLASTICS GROUP THIS MONTH WILL START CONSTRUCTION OF ITS 240 BILLION NEW TAIWANDOLLAR US918 BILLION PETROCHEMICAL COMPLEX THE LARGEST PRIVATE INVESTMENT IN TAIWAN'S HISTORY PLASTIC SHARES LOGGED THE DAY'S BIGGEST GAINS SEOUL PRICES FELL ON NEWS OF A PLANNED UNION STRIKE IN THE AUTO INDUSTRY STARTING WEDNESDAY AMONG CORPORATE DEVELOPMENTS IN LONDON GENERAL ELECTRIC FELL 35 PENCE OR 11 TO 318 PENCE 480 AND BRITISH AEROSPACE JUMPED 6 OR 16 TO 392 GENERAL ELECTRIC WHICH ISN'T RELATED TO A SIMILARLY NAMED US COMPANY AND BRITISH AEROSPACE A DAY EARLIER SAID THEY HAD ENDED TALKS ON FORMING A JOINT DEFENSEINDUSTRY VENTURE IN AMSTERDAM ABN AMRO HOLDING ROSE 180 GUILDERS TO 5770 GUILDERS 3029 TO EXPAND ITS US OPERATIONS ABN THE LARGEST BANK IN THE NETHERLANDS AGREED TO ACQUIRE CRAGIN FINANCIAL CORP THE PARENT OF CRAGIN FEDERAL BANK FOR SAVINGS THE SECONDLARGEST INDEPENDENT SAVINGS BANK IN ILLINOIS FOR 38 A SHARE OR ABOUT 540 MILLION AHOLD TUMBLED 23 OR 24 TO 95 AN INVESTMENT HOLDING COMPANY CONTROLLED BY THE FOOD RETAILER'S FOUNDING HEIJN FAMILY HAS SOLD 38 MILLION OF ITS AHOLD SHARES OR A 68 STAKE AT 9450 GUILDERS EACH TO ABN AMRO HOLDING WHICH IN TURN WILL PLACE THE STOCK WITH INSTITUTIONAL INVESTORS THE SALE'S DISCOUNT TO MONDAY'S CLOSING PRICE DRAGGED AHOLD DOWN TUESDAY 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 9307070052 930707 CONGRESS CLEARS SPENDING TO ENFORCE 1992 CABLE ACT WASHINGTON JUST THREE WEEKS AFTER FEDERAL REGULATORS SAID THEY LACKED FUNDS TO ENFORCE NEW CABLETELEVISION RATE RULES UNDER THE 1992 CABLE ACT CONGRESS PROVIDED AN 115 MILLION BOOST BUT WHETHER THE FEDERAL COMMUNICATIONS COMMISSION WHICH POSTPONED ENFORCEMENT OF THE RATECUTTING RULES UNTIL OCT 1 FROM JUNE 21 WILL CHANGE THE DATE AGAIN IS UNCERTAIN FCC MEMBERS HAVE ARGUED THAT IT WILL TAKE MONTHS FOR THE AGENCY TO RENT OFFICE SPACE HIRE A STAFF AND TRAIN NEW EMPLOYEES TO ENFORCE THE REGULATIONS THE RULES ARE EXPECTED TO PRODUCE A FLOOD OF PAPERWORK AT THE COMMISSION FROM LOCAL CABLE FRANCHISING AUTHORITIES AND CONSUMERS CHALLENGING CABLE RATES AND FROM CABLE OPERATORS JUSTIFYING MONTHLY CHARGES BASED ON VOLUMINOUS COST DATA THE COMMISSION HAS BEEN UNDER PRESSURE FROM CONSUMER GROUPS AND CONGRESS TO SPEED UP ENFORCEMENT SO CABLE SUBSCRIBERS CAN BEGIN REAPING THE LAW'S BENEFITS THE AGENCY ESTIMATED THAT CONSUMERS WILL SEE 1 BILLION IN RATE ROLLBACKS NATIONWIDE CONGRESS CLEARED THE MEASURE AS PART OF A BROADER FUNDING BILL AND PRESIDENT CLINTON SIGNED IT BEFORE LEAVING TO ATTEND AN ECONOMIC SUMMIT IN TOKYO 9307070051 930707 WHAT'S NEWS BUSINESS AND FINANCE APPLE COMPUTER PLANS TO CUT ITS WORK FORCE BY 16 OR 2500 WORKERS AS IT SEEKS TO BOLSTER ITS EARNINGS IN THE FACE OF A FIERCE PRICE WAR THAT HAS WREAKED HAVOC WITH INDUSTRY PROFITS APPLE PLANS TO TAKE A CHARGE WHICH IT DIDN'T SPECIFY FOR ITS THIRD QUARTER TO PAY FOR THE LAYOFFS NORTHWEST AIRLINES AVERTED A THREATENED BANKRUPTCYLAW FILING AT LEAST FOR NOW AFTER ITS PILOTS AGREED TO A PACT TO SAVE NORTHWEST 365 MILLION OVER THREE YEARS THE LASTMINUTE ACCORD PUTS PRESSURE ON THE MACHINISTS UNION TO REACH AN AGREEMENT QUICKLY GRAIN PRICES SOARED AND COMMODITY PRICES OVERALL POSTED THEIR BIGGEST GAIN IN NEARLY FIVE YEARS THE SURGE IN GRAIN PRICES A RESULT OF THE DEVASTATING FLOODING THROUGHOUT THE MIDWEST BOOSTED PRICES OF PRECIOUS METALS AND OTHER COMMODITIES STOCK AND BOND PRICES FELL ON RENEWED INFLATION FEARS TRIGGERED BY THE RISING GRAIN PRICES THE DOW INDUSTRIALS TUMBLED 3404 TO 344993 THE TREASURY 30YEAR BENCHMARK FELL NEARLY 1/4 POINT ITS YIELD WAS 668 IBM'S GERSTNER SINGLED OUT THE SALES FORCE AS A KEY TO THE COMPUTER COMPANY'S ILLS BUT DECIDED NOT TO UNDERTAKE A MAJOR REORGANIZATION UNDER HIS FIRST BIG STRATEGIC DECISION TO SURFACE SINCE HE TOOK OVER THREE MONTHS AGO IBM WILL SEEK INSTEAD TO MAKE THE CURRENT SYSTEM WORK BETTER THE US AND JAPAN RECONVENED TRADE TALKS BUT REMAINED AT ODDS OVER CLINTON'S DEMAND THAT JAPAN AGREE TO SET BENCHMARKS FOR MEASURING PROGRESS ON SHRINKING ITS TRADE SURPLUS THE TALKS ARE EXPECTED TO CONTINUE THIS WEEK AS CLINTON AND MIYAZAWA MEET COUNTERPARTS FROM OTHER G7 NATIONS US SALES OF NORTH AMERICANMADE CARS AND TRUCKS ROSE 67 IN THE LATE JUNE PERIOD CONCLUDING THE INDUSTRY'S STRONGEST FIRST HALF SINCE 1990 BUT EUROPE'S JUNE CAR SALES PLUNGED 184 MAGAZINE ADVERTISING WAS FLAT IN THE LATEST QUARTER AFTER A STRONG START IN THE FIRST QUARTER BUT THE FIRSTHALF FIGURES ARE STILL THE STRONGEST GAINS IN AD PAGES AND REVENUE IN FOUR YEARS ABN AMRO AGREED TO ACQUIRE CRAGIN FINANCIAL OF CHICAGO FOR ABOUT 540 MILLION INCREASING THE DUTCH BANKING FIRM'S PRESENCE IN THE US CRAGIN'S STOCK JUMPED 9875 OR 39 TO 35 AN AIR FORCE GENERAL PROPOSED THAT DEFENSE CONTRACTORS DO MUCH OF 5 BILLION IN MAINTENANCE AND UPGRADING NOW PERFORMED BY THE GOVERNMENT CLINTON PLANS TO APPOINT A WHITE HOUSE COORDINATOR TO NAVIGATE THE NORTH AMERICAN FREE TRADE AGREEMENT THROUGH SUBSTANTIAL OPPOSITION IN CONGRESS AS WELL AS A LEGAL CHALLENGE FROM A COURT RULING LAST WEEK ADVANCED MICRO DEVICES' EARNINGS ROSE 55 IN THE LATEST QUARTER BOOSTED BY SALES OF ITS FLASH MEMORY CHIPS TOKYO STOCK PRICES POSTED HEALTHY GAINS ON ANEMIC VOLUME TUESDAY THE NIKKEI INDEX CLIMBED 20672 POINTS OR 11 TO 1982978 LONDON SHARES FIRMED ON BARGAINHUNTING FRANKFURT EQUITIES ROSE ON SPECULATION ABOUT FURTHER GERMAN RATE CUTS WHICH ALSO BOOSTED OTHER EUROPEAN BOURSES BONDS LEHMAN BROTHERS TREASURY INDEX 528531 OFF 635 COMMODITIES OIL 1829 A BARREL UP 34 CENTS DOW JONES FUTURES INDEX 12682 UP 303 SPOT INDEX 12583 UP 264 DOLLAR 10880 YEN UP 022 17050 MARKS UP 00085 9307070050 930707 HEARD ON THE STREET NEWS CORP RETURNS TO THE ACQUISITION TRAIL IN MODEST WAY THAT MAY KEEP REIN ON STOCK BY S KARENE WITCHER STAFF REPORTER OF THE WALL STREET JOURNAL SYDNEY AUSTRALIA RUPERT MURDOCH'S NEWS CORP IS ON A ROLL WHAT THE STOCK PRICE IS IN FOR THOUGH IS MORE LIKE A NUDGE NEWS CORP WATCHERS SAY NEARLY THREE YEARS AFTER A BRUSH WITH FINANCIAL RUIN SENT THE GOGO MEDIA COMPANY INTO THE BUNKER MR MURDOCH HAS PUT IT BACK ON THE ACQUISITION TRAIL BUT HE IS TAKING RELATIVELY SMALL STEPS COMPARED WITH THE BIG LEAPS OF THE PAST CONVINCING SOME BULLS THAT THE STOCK WILL BE EDGING HIGHER WITHOUT FALLING PREY TO AN OVERLY COSTLY ACQUISITION BINGE NEWS CORP IS REALLY IN AN EXPANSION PHASE NOW SAYS GEORGE BATSAKIS WHO TRACKS THE COMPANY FOR MELBOURNE STOCK BROKERAGE HOUSE JB WERE & SON YET IT ISN'T AGGRESSIVE SPENDING IT'S GOING FROM THREE YEARS OF DOING NOTHING TO DOING SOMETHING WE AREN'T LOOKING AT BILLIONDOLLAR DEALS ADDS ANOTHER NEWS CORP WATCHER WHO ARGUES THAT THE COMPANY'S BANK LENDERS STILL HAVE A SUFFICIENTLY TIGHT REIN TO PREVENT MEGAACQUISITIONS BEHIND THE COMPANY NOW IS A RESCUE PROGRAM THAT RESULTED IN NEWS CORP SHEDDING ASSETS TO REDUCE DEBT BOLSTERING THE BALANCE SHEET BY SWITCHING THE BULK OF BANK BORROWINGS TO LONGTERM DEBT AND CUTTING COSTS ACROSS THE CORPORATE EMPIRE A RECENTLY COMPLETED RESTRUCTURING OF NEWS CORP'S BANK DEBT WHICH PEAKED AT NEARLY 10 BILLION AUSTRALIAN DOLLARS US 671 BILLION IN DECEMBER 1990 HAS GENERALLY GOTTEN NERVOUS LENDERS OFF THE COMPANY'S BACK RECENT MONTHS HAVEN'T BEEN STELLAR FOR NEWS CORP SHARES WHICH HAVE LANGUISHED IN A STRONGER AUSTRALIAN MARKET AND AHEAD WE'VE HAD OUR METEORIC RISE SAYS A NEWS CORP INSIDER OF THE POSTDEBTCRISIS COMEBACK THAT BROUGHT NEARLY A TENFOLD SURGE WITHIN 2 1/2 YEARS NEVERTHELESS JB WERE'S MR BATSAKIS THINKS THAT IN THE NEXT YEAR THE SHARES ARE HEADED TOWARD A9 EACH FROM A RECENT LEVEL OF ABOUT A750 A SHARE HE'S TELLING CLIENTS TO BUY NEWS CORP STOCK THE COMPANY'S AMERICAN DEPOSITARY RECEIPTS EACH DENOTING EIGHT SHARES CLOSED AT 41 1/8 UP 3/4 YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING A BIG SPLASH ON THE ACQUISITION FRONT WAS LAST MONTH'S NEWS THAT NEWS CORP INTENDS TO GET INTO TELEVISION IN ASIA WITH A 2459 MILLION PURCHASE OF 22 OF TELEVISION BROADCASTS LTD HONG KONG A LEADING PRODUCER OF CHINESELANGUAGE PROGRAMMING LAST WEEK NEWS CORP SAID IT WOULD SPEND ABOUT A90 MILLION TO GET BACK INTO THE TV BUSINESS IN AUSTRALIA BY BUYING 15 OF A COMMERCIAL TV NETWORK THE COMPANY ALSO HAS SIGNALED THAT IT HOPES TO EXPAND PRINTMEDIA INTERESTS IN CHINA AND HAS BEEN STUDYING VIETNAM IN THE US NEWS CORP APPEARS CLOSE TO REGAINING CONTROL OF THE NEW YORK POST WHICH IT WAS FORCED TO SELL IN 1988 TO COMPLY WITH US CROSSMEDIA OWNERSHIP RULES THE POST IS IN BANKRUPTCYPROTECTION PROCEEDINGS THROUGH ITS FOX INC UNIT NEWS CORP IN MAY FORMED A NEW CABLE TV SERVICE WITH TELECOMMUNICATIONS INC AND MR MURDOCH IS ON THE LOOKOUT TO ADD TO A STRING OF EIGHT FOX STATIONS ANALYSTS EXPECT EARNINGS TO RISE STRONGLY VIKTOR SHVETS A BULL AT AUSTRALIA'S MCINTOSH & CO ESTIMATES PROFIT SURGED TO A945 MILLION OR 553 AUSTRALIAN CENTS A SHARE FOR THE FISCAL YEAR ENDED LAST WEEK AFTER TAX BUT UNADJUSTED FOR ONETIME ITEMS AGAINST A YEARAGO A5306 MILLION OR 35 CENTS A SHARE FOR FISCAL 1994 ENDING NEXT JUNE MCINTOSH ENVISIONS A12 BILLION OR 681 CENTS A SHARE NEWS CORP WON'T COMMENT BUT SEVERAL HURDLES LOOM FOR THE STOCK PEOPLE ARE USED TO ENORMOUS QUANTUM LEAPS IN NEWS CORP EARNINGS AND THEY ARE WONDERING WHERE IT'S GOING TO COME FROM HENCE THE IMPORTANCE OF THE STAKE IN TELEVISION BROADCASTS OF HONG KONG SAYS MR SHVETS ALSO THERE IS SOME UNEASE OVER WHAT ONE NEWS CORP WATCHER TERMS THE UNPREDICTABILITY OF MR MURDOCH THERE ARE SIGNS THAT HIS QUEST FOR A PIECE OF THE HONG KONG BROADCASTER COULD HIT SNAGS LAST WEEK NEWS CORP WITHDREW A REQUEST FOR HONG KONG AUTHORITIES TO EASE FOREIGNOWNERSHIP LIMITS ON TV COMPANIES AFTER RUMBLINGS THAT BEIJING MIGHT BE CONCERNED ABOUT SUCH A MOVE ANALYSTS SAY ANY MOVE TO SLICE NEWS CORP'S PROPOSED STAKE WOULD BE A BLOW NEWS CORP WON'T COMMENT ON THE TALKS THE REAL ISSUE CONTENDS TERRY POVEY AN ANALYST AT ANZ MCCAUGHAN SECURITIES LTD IS WHETHER THE POLITICAL HEAT FROM CHINA ON WHAT THE STREET REFERS TO AS THE TVB TRANSACTION REFLECTS ANY DEEPER CONCERN IF CHINA HAS FUNDAMENTALLY OBJECTED TO RUPERT AND NEWS CORP THIS ISN'T GOOD NEWS FOR ANYTHING THE MEDIA MOGUL MIGHT WANT TO DO IN CHINA HE SAYS EVEN BEFORE THE CHINA FLAP MR POVEY A FORMER NEWS CORP BULL DOWNGRADED THE STOCK TO A HOLD HE CITES AN APPARENT WANING OF US INVESTOR INTEREST AND A QUESTION MARK OVER NEWS CORP'S NEXT BIG PROFITGROWTH LEG SIXMONTHS ENDED DEC 31 1992 SECOND QUARTER DEC 31 1992 AVERAGE DAILY TRADING VOLUME SHARES OUTSTANDING NOTES EACH ADR IS EQUAL TO 8 ORDINARY SHARES ALSO FIGURES ARE IN US DOLLAR AMOUNTS CONVERTED BY COMPANY USING AVERAGE EXCHANGE RATES FOR EACH PERIOD 9307070049 930707 ABN AMRO AGREES TO BUY CHICAGO THRIFT CRAGIN'S STOCK JUMPS 39 ON DUTCH BANK'S OFFER OF ABOUT 540 MILLION BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO ABN AMRO HOLDING NV GAVE ITS ALREADY SUBSTANTIAL US PRESENCE ANOTHER BOOST WITH AN AGREEMENT TO ACQUIRE CRAGIN FINANCIAL CORP FOR 38 A SHARE OR ABOUT 540 MILLION THE EXPANSIONMINDED DUTCH BANKING AND FINANCIALSERVICES CONCERN IS PAYING A HEFTY PREMIUM TO ACQUIRE THE PROFITABLE US THRIFT HOLDING COMPANY IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY CRAGIN SHARES JUMPED 9875 OR 39 TO CLOSE AT 35 THE TRANSACTION WHICH IS SUBJECT TO APPROVAL FROM CRAGIN'S STOCKHOLDERS AND REGULATORY CLEARANCE ISN'T EXPECTED TO CLOSE UNTIL EARLY NEXT YEAR CRAGIN WITH ASSETS OF ABOUT 28 BILLION IS THE PARENT OF CRAGIN FEDERAL BANK FOR SAVINGS WHICH HAS 27 OFFICES IN THE CHICAGO AREA ANALYSTS CONSIDER THE RETAILORIENTED CONCERN TO BE CONSERVATIVE AND WELL RUN CRAGIN CONVERTED IN MID1991 FROM A MUTUAL OWNERSHIP TO A STOCK OWNERSHIP FORMAT THROUGH AN INITIAL OFFERING IN WHICH DEPOSITORS AND EMPLOYEES BOUGHT ALL THE STOCK OFFERED AT A SPLITADJUSTED 667 A SHARE THOSE INVESTORS WILL HAVE MORE THAN QUINTUPLED THEIR INVESTMENT IN A TWOYEAR SPAN FOR 1992 CRAGIN HAD NET INCOME OF 367 MILLION OR 239 A SHARE ITS RETURN ON AVERAGE ASSETS WAS A HEARTY 138 LAST YEAR AND THE COMPANY'S BOOK VALUE AT MARCH 31 STOOD AT ABOUT 24 A SHARE ABN AMRO WAS FORMED IN 1990 THROUGH THE MERGER OF WHAT HAD BEEN THE NETHERLANDS' TWO LARGEST BANKING GROUPS WHILE ITS 250 BILLION IN ASSETS MAKE IT ONE OF THE WORLD'S 20 LARGEST BANKS THE COMPANY'S MATURE AND RELATIVELY SMALL HOME MARKET MEANS THAT MOST OF ITS GROWTH MUST COME FROM ABROAD THE ABN AMRO NORTH AMERICA UNIT ALREADY HOLDS ABOUT 40 BILLION IN US ASSETS THE DUTCH COMPANY USED ITS LASALLE NATIONAL CORP PURCHASED IN 1979 AS A SPRINGBOARD FOR OTHER ACQUISITIONS IN THE CHICAGO REGION THE LATEST OF THOSE MOVES WAS THE 1991 ACQUISITION AND RECAPITALIZATION OF TALMAN HOME FEDERAL SAVINGS & LOAN ABN AMRO CURRENTLY HAS ABOUT 16 BILLION IN ASSETS AND ABOUT 60 BRANCHES IN THE CHICAGO AREAGIVING IT WHAT IT SAYS IS THE SECONDLARGEST RETAILBANKING OPERATION IN ILLINOIS BEHIND FIRST CHICAGO CORP THE PLANNED CRAGIN PURCHASE WON'T PUT AMRO'S RETAIL OPERATION IN FIRST PLACE SAID A SPOKESMAN IN CHICAGO BUT IT WILL BRING US PRETTY DARN CLOSE AMRO ALSO OWNS EUROPEAN AMERICAN BANK AN ABOUT 56 BILLIONASSET INSTITUTION IN UNIONDALE NY AND OPERATES 10 US BRANCH OFFICES UNDER ITS OWN NAME IN ANOTHER RECENT EXPANSION AMRO PURCHASED BRITISH STOCK BROKERAGE FIRM HOARE GOVETT FROM THE CALIFORNIA BANK THEN KNOWN AS SECURITY PACIFIC CORP WE ARE LOOKING FOR EXPANSION ALL OVER THE WORLD THOUGH WE ARE FOCUSING MORE ON EUROPE AND THE US PETER JAN KALFF MANAGEMENT BOARD MEMBER IN CHARGE OF ABN AMRO'S INTERNATIONAL OPERATIONS SAID IN AN INTERVIEW ONCE THE CRAGIN ACQUISITION CLOSES HE SAID ABN AMRO INTENDS TO SHIFT ITS EMPHASIS IN THE US TOWARD BROADENING EXISTING BUSINESS AUTONOMOUSLY IN CONTRAST WITH THE RECENT EMPHASIS ON ACQUISITIONS AH MOORADIAN IN AMSTERDAM CONTRIBUTED TO THIS STORY 9307070048 930707 ENTERPRISE WHEN RUNNING A COMPANY IS HARDER THAN STARTING ONE AN ENTREPRENEUR MENDS BRIDGES AND HIRES AN OLD BOSS TO SAVE HIS FIRM BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL IN 1990 CAM DATA SYSTEMS INC FOUNDER GEOFFREY KNAPP TURNED OVER THE POST OF CHIEF EXECUTIVE TO A MAN HE HAD LONG CONSIDERED A FOE HE RECENTLY TOOK IT BACK FROM THE SAME MAN WHOM HE NOW CONSIDERS A FRIEND WHILE THAT MAY SOUND STRANGE MR KNAPP IS PLAYING OUT A COMMON ENTREPRENEURIAL DILEMMA HOW DOES A FOUNDER WHOSE SKILLS ARE BUILDING A COMPANY RUN IT SUCCESSFULLY HIS UNUSUAL SOLUTION HE HIRED A FORMER BOSS FROM WHOM HE HAD PARTED ON LESSTHANFRIENDLY TERMS HE HAD A COMPELLING MOTIVE HE NEEDED HELP BADLY MAKING THE TRANSITION FROM AN ENTREPRENEURIAL COMPANY TO A PROFESSIONALLY MANAGED ONE IS PERHAPS THE MOST COMMON PROBLEM FACED BY SUCCESSFUL STARTUPS AND PROBABLY THE MAIN REASON MANY OF THEM EVENTUALLY FAIL SAYS JON GOODMAN DIRECTOR OF THE ENTREPRENEUR PROGRAM AT THE UNIVERSITY OF SOUTHERN CALIFORNIA IN LOS ANGELES SO ENTREPRENEURS OFTEN BRING IN OUTSIDERS BUT THIS CAN BE TRICKY SAYS JOHN DAVIS A SANTA BARBARA CALIF CONSULTANT EVENTUALLY MANY FOUNDERS FEEL THREATENED AND SEE THE PERSON THEY BROUGHT IN AS SOMEONE TRYING TO UNDERMINE THEIR AUTHORITY HE SAYS AND INDEED WHILE THE 34YEAROLD MR KNAPP AND HIS NO 2 CARL SMITH 51 ARE PUTTING UP A UNITED FRONT THERE ARE SIGNS OF FRICTION BETWEEN THEM THEIR RELATIONSHIP HAD AN INAUSPICIOUS BEGINNING JUST OUT OF COLLEGE IN 1980 MR KNAPP WENT TO WORK AS A SALESMAN FOR TRIAD SYSTEMS CORP LIVERMORE CALIF WHICH SELLS COMPUTERIZED ACCOUNTINGANDINFORMATION SYSTEMS TO RETAILERS MR SMITH HEADED THE DIVISION WHERE MR KNAPP WORKED IN HIS EARLY 20S MR KNAPP DECIDED TO START CAM DATA TO SELL AUTOMATION SERVICES AND EQUIPMENT TO RETAILERS I WAS PRETTY COCKY AND OBNOXIOUS RECALLS MR KNAPP TRIAD APPARENTLY AGREED IT FILED A MULTIMILLIONDOLLAR DAMAGE SUIT AGAINST MR KNAPP CHARGING UNFAIR COMPETITION BREACH OF EMPLOYMENT CONTRACT AND INTERFERING WITH TRIAD'S BUSINESS ARRANGEMENTS MR KNAPP DENIED THE CHARGES THE SUIT WAS EVENTUALLY SETTLED WITHOUT MONETARY DAMAGES BEING PAID BUT THE CIRCUMSTANCES OF MR KNAPP'S DEPARTURE SOURED RELATIONS BETWEEN THE TWO MEN MR SMITH SAYS HE CLEARLY VIEWED THE YOUNGER MAN AS AN UPSTART HERE WAS A 23YEAROLD KID TELLING THE WORLD HOW IT SHOULD BE RUN HE SAYS HE RECALLS PREDICTING THAT WITHIN TWO YEARS MR KNAPP WOULD BE ON THE STREETS SELLING PENCILS THERE MATTERS STOOD FOR SEVERAL YEARS AS MR KNAPP STRUGGLED TO BUILD HIS FOUNTAIN VALLEY CALIF COMPANY THOUGH CAM DATA GREW RAPIDLY COSTS ROSE FASTER THAN REVENUES AND BY THE LATE 1980S THE COMPANY WAS SHOWING CONSISTENT LOSSES MR KNAPP SAYS HE FOUND HIMSELF MIRED IN MANAGING I WAS TRYING TO DO EVERYTHING AND DOING NOTHING VERY WELL HE SAYS I FELT LIKE I SHOULD EITHER SHOOT MYSELF OR SELL THE COMPANY INSTEAD HE SOUGHT OUTSIDE HELP HIS FIRST HIRE A HOTSHOT YOUNG EXECUTIVE FROM A FORTUNE 500 COMPANY WITH THE PERFECT RESUME COULDN'T DEAL WITH A SMALL MONEYLOSING OPERATION AND WAS GONE IN 90 DAYS MR KNAPP SAYS THEN HE GOT A CALL FROM MR SMITH WHO HAD HEARD ABOUT THE OPENING THROUGH A MUTUAL FRIEND I THOUGHT LONG AND HARD BEFORE MAKING THAT CALL SAYS MR SMITH MR KNAPP SAYS HE ALSO HAD RESERVATIONS BUT RESPECTED MR SMITH'S ABILITIES SO THE TWO MET AGAIN AND HIT IT OFF THEY TALKED OUT THEIR PAST PROBLEMS IN 1990 MR KNAPP OFFERED MR SMITH THE PRESIDENT'S POST HE AGREED ON THE CONDITION THAT HE WOULD BE CLEARLY IN CHARGE OF DAYTODAY OPERATIONS MR KNAPP AGREED HE MADE MR SMITH NOT JUST CHIEF OPERATING OFFICER BUT CHIEF EXECUTIVE OFFICER HE ALSO GAVE UP HIS CORNER OFFICE AND LATER MOVED HIMSELF AND HIS FAMILY TO BOULDER CITY NEV HE SAYS THE MOVE FREED HIM TO CONCENTRATE ON HIS MAIN RESPONSIBILITIES OVERSEEING SALES AND MAKING ACQUISITIONS HE ONLY COMES INTO CAM DATA'S HEADQUARTERS ABOUT THREE DAYS EVERY THREE WEEKS UNDER MR SMITH CAM DATA CUT ITS WORK FORCE WHICH IS CURRENTLY 85 BY ABOUT 20 CLOSED UNPROFITABLE FIELD OFFICES AND MADE MONEY FOR THE QUARTER ENDED MARCH 31 THE COMPANY EARNED 177000 ON REVENUE OF 31 MILLION ITS SIXTH CONSECUTIVE PROFITABLE QUARTER AFTER A STRING OF LOSSES SMITH HAS BEEN A STABILIZING INFLUENCE AT THE COMPANY SAYS JOHN GIRTON AN ANALYST AT VAN KASPER & CO SAN FRANCISCO THEIR RELATIONSHIP IS STILL EVOLVING HOWEVER MR KNAPP CAM DATA'S LARGEST SHAREHOLDER WITH NEARLY 18 OF THE STOCK RECENTLY TOOK BACK THE CHIEF EXECUTIVE'S TITLE IT MAKES IT EASIER FOR ME TO WORK WITH THE INVESTMENT COMMUNITY AND CUSTOMERS SAYS MR KNAPP BOTH MEN INSIST THE TITLE CHANGE WON'T AFFECT THEIR DUTIES MR SMITH ADMITS HE WAS CONCERNED ENOUGH AT FIRST TO ASK MR KNAPP IF THERE WAS ANY HIDDEN AGENDA TO REDUCE HIS POWERS BUT SAYS HE RECEIVED ASSURANCES THAT THERE WASN'T THE LOSS OF HIS TITLE IS INCONSEQUENTIAL HE INSISTS ADDING THAT HE NOW FEELS WELL ESTABLISHED AS THE NO 1 GUY IN OPERATIONS HOWEVER OUTSIDERS ARGUE THAT STRIPPING A MANAGER OF HIS CEO STATUS IS HARDLY AN INCONSEQUENTIAL ACT IT'S A MATERIAL CHANGE BY ANY DEFINITION SAYS MS GOODMAN HEAD OF THE USC ENTREPRENEUR PROGRAM TO SAY IT DOESN'T MATTER IS TO SORT OF REINVENT CORPORATE HISTORY MEANTIME THE FOUNDER SEEMS TO BE RESERVING FINAL JUDGMENT ON THE MAN WHO GOT HIS OFFICE I THINK HIS REPORT CARD WILL BE FILLED OUT IN THE NEXT YEAR MR SMITH'S RESPONSE I THINK I HAVE PROVED MYSELF 9307070047 930707 AIR FORCE'S NO 2 OFFICER PROPOSES SHIFT OF MAINTENANCE WORK TO PRIVATE SECTOR BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A TOP AIR FORCE OFFICER IS ADVOCATING A RADICAL CHANGE IN THE SERVICE'S APPROACH TO THE DEFENSE INDUSTRY ON THE HEELS OF A SIMILAR BUT SMALLER MOVE BY THE NAVY GEN MICHAEL CARNS THE AIR FORCE'S VICE CHIEF OF STAFF SAID HE WANTS TO SHIFT MUCH OF HIS SERVICE'S MODIFICATION AND HEAVY MAINTENANCE WORK ON WHICH IT WILL SPEND 5 BILLION THIS YEAR TO DEFENSE COMPANIES FROM MILITARY FACILITIES WHAT IS BEING CONSIDERED HE SAID IN AN INTERVIEW IS ESSENTIALLY SHIFTING AN ENORMOUS AMOUNT OF WORK FROM THE PUBLIC SECTOR TO THE PRIVATE SECTOR THE DEFENSE INDUSTRY WOULD WELCOME THE MOVE IN THE POSTCOLD WAR ERA THE INDUSTRY HAS SOUGHT MORE OF THE MILITARY'S MAINTENANCE AND UPGRADE WORK ONLY TO SEE IT ABSORBED INHOUSE EACH SERVICE NOW HAS HUGE OVERCAPACITY IN ITS OWN SPRAWLING DEPOT SYSTEM THE LIKELY EFFECT OF GEN CARNS'S PLAN WOULD BE TO SLASH THE WORK FORCE AT THE AIR FORCE'S FIVE AIR LOGISTICS CENTERS WHICH EMPLOY ABOUT 55000 CIVILIANS ULTIMATELY HE PREDICTED THE AIR FORCE MAY PERFORM ONLY ABOUT 15 TO 20 OF ITS CURRENT WORKLOAD THE FIVE CENTERS ARE LOCATED IN SAN ANTONIO OKLAHOMA CITY SACRAMENTO CALIF OGDEN UTAH AND MACON GA ALTHOUGH THE GENERAL'S PROPOSAL HASN'T YET RECEIVED APPROVAL FROM THE PENTAGON'S SENIOR CIVILIAN POLICY MAKERS HE SAID IT HAS WON A REASONABLE RECEPTION FROM WILLIAM PERRY THE PENTAGON'S NO 2 OFFICIAL AND JOHN DEUTCH ITS ACQUISITION CHIEF BUT GEN CARNS'S POSITION SHARPLY CONTRASTS WITH THAT TAKEN LAST YEAR BY GEN RONALD YATES HEAD OF THE AIR FORCE MATERIEL COMMAND IN A SPEECH LAST FALL GEN YATES STUNNED DEFENSE CONTRACTORS BY ANNOUNCING I DON'T INTEND TO CLOSE ANY DEPOTS I INTEND TO TAKE WORK AWAY FROM YOU TO KEEP MY DEPOTS OPEN GEN CARNS'S ADVOCACY IS SIGNIFICANT FOR SEVERAL REASONS FIRST IT REPRESENTS A SIGNIFICANT SWITCH FOR THE AIR FORCE WHICH UNTIL RECENTLY HAS TALKED ABOUT DOING AS MUCH OF ITS OWN WORK AS POSSIBLE SECOND HE ARGUES THAT THE POLICY SHOULD BE ACROSS THE DEFENSE DEPARTMENT WHICH MEANS THAT IT ALSO WOULD ALTER HOW THE NAVY AND ARMY DO BUSINESS FINALLY IT RESEMBLES THE POSITION RECENTLY ADOPTED BY THE NAVY'S AVIATION ARM WHICH ALSO WANTS TO PUSH BILLIONS OF DOLLARS OF DEFENSE WORK INTO THE PRIVATE SECTOR WITH THE AIR FORCE NO LONGER APPEARING TO BE CHARTING A DIFFERENT COURSE THE IDEA OF TILTING TOWARD INDUSTRY APPEARS TO BE TAKING ON AN UNSTOPPABLE MOMENTUM AMONG PENTAGON POLICY MAKERS BUT THE GENERAL IS STAKING OUT AN EVEN MORE RADICAL POSITION THAN DID THE NAVY WHICH WANTS TO PRESERVE FOR ITSELF SOME CORE WORK TO MAINTAIN ITS INTERNAL SKILLS FOR THE F/A18 STRIKE FIGHTER FOR EXAMPLE THE NAVY DEFINES CORE WORK AS MAINTAINING OR UPGRADING ABOUT 20 A YEAR MY GUESS IS PRACTICALLY NOTHING IS CORE SAID GEN CARNS I DON'T KNOW OF ANYTHING THAT YOU CAN'T CONTRACT OUT FOR A PRICE HE DEFINED CORE WORK THAT THE INDUSTRY COULDN'T OR WOULDN'T DO FOR A COMPETITIVE PRICE TO AVOID THE NAVY'S PAINFUL EXPERIENCE OF CUTTING TENS OF THOUSANDS OF JOBS AT ONE TIME AS IT IS DOING NOW IN CHARLESTON SC AND THE SAN FRANCISCO BAY AREA GEN CARNS SAID HE HOPES TO TRIM THE AIR FORCE INFRASTRUCTURE SLOWLY I DON'T SEE THE DEPOTS CLOSING PER SE HE SAID I SEE THE WORK FORCE GOING OUT THE GATE TO THE PRIVATE SECTOR 9307070046 930707 S&P 500 TO REMOVE INTERLAKE NEW YORK STANDARD & POOR'S CORP SAID IT WILL REMOVE INTERLAKE CORP FROM THE S&P 500 AT THE CLOSE OF TRADING JULY 12 BECAUSE OF ITS RELATIVELY SMALL MARKET VALUE CURRENTLY LESS THAN 100 MILLION THE REMOVAL OF INTERLAKE FROM THE S&P 500 DOES NOT REFLECT UPON THE INVESTMENT MERITS OF THE COMPANY S&P SAID INTERLAKE A DIVERSIFIED INDUSTRIAL MANUFACTURING CONCERN IS BASED IN LISLE ILL DEAN WITTER DISCOVER & CO A SECURITIES FIRM WILL BE ADDED TO THE S&P 500 EFFECTIVE AT THE CLOSE OF TRADING JULY 12 IT WILL BE ADDED TO THE MISCELLANEOUS FINANCIAL INDUSTRY GROUP DEAN WITTER NEW YORK IS TO BE SPUN OFF BY SEARS ROEBUCK & CO WHICH HOLDS AN 80 INTEREST 9307070045 930707 CLINTON CALLS FOR SUMMIT OF EAST ASIA DEMOCRACIES TOKYO CALLING FOR JAPAN AND OTHER EAST ASIAN DEMOCRACIES TO JOIN THE US IN A NEW PACIFIC COMMUNITY PRESIDENT CLINTON INVITED THE LEADERS OF PACIFIC RIM NATIONS TO JOIN HIM FOR AN INFORMAL SUMMIT IN SEATTLE THIS FALL IN A SPEECH WEDNESDAY MORNING AT WASEDA UNIVERSITY HERE MR CLINTON SUGGESTED THAT WITH THE COLD WAR WON THE US WAS INCREASINGLY LOOKING TO ASIA AS A KEY TO THE FUTURE THE PACIFIC REGION CAN AND WILL BE A VAST SOURCE OF JOBS OF INCOME OF PARTNERSHIP OF GROWTH FOR OUR OWN PEOPLE IN THE US HE SAID REFERRING TO THE NORTH AMERICAN FREE TRADE AGREEMENT MR CLINTON SUGGESTED THE POSSIBILITY OF SIMILAR PACTS BETWEEN THE US AND EAST ASIAN NATIONS THE PRESIDENT ALSO SENT A NOTSOTHINLY VEILED MESSAGE TO CHINA AND OTHER AUTHORITARIAN REGIMES IN ASIA WARNING THAT THERE IS NO CULTURAL JUSTIFICATION FOR TORTURE OR TYRANNY ON TUESDAY BOTH MR CLINTON AND SECRETARY OF STATE WARREN CHRISTOPHER TRIED TO REASSURE JAPAN AND OTHER ASIAN COUNTRIES THAT THE US ISN'T BACKING AWAY FROM ITS SECURITY COMMITMENTS TO ALLIES IN THE REGION 9307070044 930707 GONZALEZ CHARGES FED LEAKS' ITS DECISIONS BEFORE TELLING PUBLIC WASHINGTON HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ CHARGED THAT THE FEDERAL RESERVE LEAKS ITS MONETARY POLICY DECISIONS TO A CHOSEN FEW BEFORE REPORTING ITS POLICIES TO THE PUBLIC IN A LETTER TO FED CHAIRMAN ALAN GREENSPAN MR GONZALEZ SAID THE FED SHOULD PROMPTLY RELEASE SUMMARIES OF DECISIONS BY THE FEDERAL OPEN MARKET COMMITTEE WHICH SETS MONETARY POLICY RATHER THAN WAITING SIX WEEKS TO PUBLISH A SUMMARY IT'S DURING THE INTERIM PERIOD THAT THE FED ON OCCASION DISSEMINATES INFORMATION FROM ITS FOMC MEETING THROUGH LEAKS AND RANDOM PUBLIC STATEMENTS BY FEDERAL RESERVE OFFICIALS MR GONZALEZ SAID IN THE LETTER JOSEPH COYNE THE FED'S SPOKESMAN COULDN'T BE REACHED FOR COMMENT ON THE GONZALEZ CHARGES AS EXAMPLES OF ALLEGED LEAKS MR GONZALEZ CITED NEWS REPORTS IN THE WALL STREET JOURNAL AND OTHER PUBLICATIONS BECAUSE OF NEWSPAPER PUBLICATION SCHEDULES THESE REPORTS SOMETIMES ALLOW TRADERS IN EUROPE AND ASIA TO ACT BEFORE TRADERS IN THE US MR GONZALEZ SAID THE TEXAS DEMOCRAT HAS PREVIOUSLY ASKED THE FED TO MAKE QUICK DISCLOSURE OF THE FOMC'S DECISIONS BUT MR GREENSPAN HAS SAID THAT SUCH DISCLOSURE COULD COMPLICATE THE EXECUTION OF MONETARY POLICY IN HIS LETTER MR GONZALEZ SAID HE HAS PROPOSED LEGISLATION TO REQUIRE THE FED TO ADOPT A PROMPT SYSTEMATIC METHOD OF INFORMATION DISPERSAL THAT WILL ALLOW ALL CITIZENS EQUAL ACCESS TO FOMC DISCUSSION OF MONETARY POLICY CONGRESS HASN'T SHOWN MUCH INTEREST IN THE PROPOSAL 9307070043 930707 MARKETING & MEDIA NEWS CORP MAY END POST PACT NEW YORK RUPERT MURDOCH'S NEWS CORP SAID IT PLANS TO TERMINATE ITS AGREEMENT TO MANAGE THE NEW YORK POST ON JULY 9 UNLESS AGREEMENTS ARE REACHED WITH UNIONS REPRESENTING THE POST'S EMPLOYEES EARLIER A FEDERAL BANKRUPTCY COURT JUDGE ACCEPTED A PLAN UNDER WHICH MR MURDOCH CHAIRMAN OF THE GIANT MEDIA COMPANY TOOK MANAGEMENT CONTROL OF THE TABLOID NEWSPAPER FROM COURTDESIGNATED OWNER ABRAHAM HIRSCHFELD 9307070042 930707 FOREIGN EXCHANGE DOLLAR ENDS MIXED ON REPORT GERMANY MAY HASTEN TIMETABLE FOR NEXT RATE CUT BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR FINISHED MIXED IN SUBDUED SUMMER TRADING TUESDAY AIDED SOMEWHAT BY A REPORT SUGGESTING THE NEXT GERMAN RATE CUT MAY COME SOONER THAN PREVIOUSLY THOUGHT BUT DEALERS SAID THE DOLLAR'S GAINS AGAINST THE MARK WERE CURBED BY A GROWING PERCEPTION THAT US RATES AREN'T LIKELY TO RISE SOON LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17050 MARKS UP FROM 16965 MARKS LATE MONDAY IN LONDON THE US CURRENCY ALSO WAS CHANGING HANDS AT 10880 YEN UP A BIT FROM 10858 YEN STERLING WAS TRADING AT 15030 DOWN FROM 15080 ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10880 YEN AND AT 17048 MARKS US CURRENCY MARKETS WERE CLOSED MONDAY IN OBSERVANCE OF THE INDEPENDENCE DAY HOLIDAY TRADERS SAID THE DOLLAR RECEIVED AN EARLY BOOST AGAINST THE MARK FROM AN ARTICLE IN THE GERMAN NEWS MAGAZINE DER SPIEGEL THAT STATED SOME OF THE BUNDESBANK'S MOST PROMINENT BOARD MEMBERS LAST WEEK HAD ARGUED FOR DEEPER CUTS IN INTEREST RATES THAN FINALLY WERE AGREED ON THURSDAY THE GERMAN CENTRAL BANK TRIMMED ITS OFFICIAL DISCOUNT RATE TO 675 FROM 725 AND ITS LOMBARD RATE TO 825 FROM 850 THE DISCOUNT RATE IS THE LOWEST RATE AT WHICH THE BUNDESBANK WILL LEND TO GERMAN BANKS THE LOMBARD RATE IS THE EFFECTIVE CEILING ON OVERNIGHT MONEY MARKET RATES WHILE GERMAN RATES ARE SEEN TRENDING LOWER THE ARTICLE RAISED THE POSSIBILITY THAT THE NEXT REDUCTIONS MIGHT COME BEFORE SEPTEMBER WHICH HAD BEEN THE MARKET'S GENERAL CONSENSUS ABOUT THEIR TIMING SAID ALFONSO ALEJO SENIOR PROPRIETARY TRADER AT SAKURA BANK LTD WHEN A NATION LOWERS ITS INTEREST RATES DEPOSITS DENOMINATED IN ITS CURRENCY TEND TO BECOME LESS ATTRACTIVE TO INVESTORS IN A STATEMENT THE BUNDESBANK DENIED THE MAGAZINE'S ACCOUNT OF EVENTS BUT THIS SEEMED TO HAVE LITTLE INFLUENCE ON TRADING DEALERS SAID THE GERMAN ARTICLE'S IMPACT HOWEVER WAS OFFSET SOMEWHAT BY EXPECTATIONS THAT US INTEREST RATES AREN'T LIKELY TO RISE IN THE IMMEDIATE FUTURE SAID LOUIS RAPPAPORT FOREIGNEXCHANGE MANAGER AT SOCIETE GENERALE THE FEDERAL RESERVE'S POLICYSETTING OPEN MARKET COMMITTEE MET TUESDAY AND IS TO MEET AGAIN WEDNESDAY AND IT IS WIDELY EXPECTED TO HOLD SHORTTERM RATES STEADY AT ITS MOST RECENT MEETING IN MIDMAY THE COMMITTEE IS BELIEVED TO HAVE LEANED TOWARD RAISING SHORTTERM RATES US ECONOMIC DATA JUST DON'T SUPPORT ANY TIGHTENING OF RATES NOW SAKURA BANK'S MR ALEJO SAID LATE IN THE SESSION THE DOLLAR WAS BOOSTED AGAINST THE MARK AND MOST MAJOR CURRENCIES BY A FLURRY OF BUYING SPARKED BY SURGING METAL AND OTHER COMMODITY PRICES SAID BARUCH DEUTSCH A DEALER AT LEHMAN BROTHERS INC TRADERS SAID THE RISE PROBABLY REFLECTED DEMAND FOR DOLLARS AMONG POTENTIAL PURCHASERS OF COMMODITIES AIMING TO TAKE ADVANTAGE OF THE SHARP PRICE GAINS THE CRB COMMODITY FUTURES INDEX WHICH TRACKS PRICES OF MAJOR COMMODITIES SETTLED AT 21730 TUESDAY UP 529 POINTS FROM FRIDAY AGAINST THE YEN THE DOLLAR DRIFTED IN A BROAD RANGE ESSENTIALLY ON TECHNICAL FACTORS MR ALEJO SAID THE US CURRENCY FOUND GOOD BUYING INTEREST AT ITS INTRADAY LOWS JUST UNDER 108 YEN BUT IT WAS SOLD BY JAPANESE EXPORTERS AND INSURERS NEAR ITS INTRADAY PEAK OF 109 YEN HE SAID 9307070041 930707 ABREAST OF THE MARKET INDUSTRIALS DROP 3404 TO 344993 AMID SHARP GAINS IN GOLD PRICES BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCK INVESTORS BOWED TO INFLATION JITTERS PUSHING PRICES LOWER THE DOW JONES INDUSTRIAL AVERAGE PLUMMETED 3404 POINTS TO 344993 IN MODERATELY HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX TUMBLED 441 POINTS TO 44143 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX LOST 205 TO 24507 VOLUME ON THE BIG BOARD ROSE TO 233310000 SHARES FROM 212670000 SHARES FRIDAY DECLINING ISSUES OUTNUMBERED ADVANCERS 1128 TO 856 STOCK PRICES STARTED THE DAY HIGHER BUT ERODED AS INTEREST RATES ROSE AMID SHARP GAINS IN GOLD PRICES AND A JUMP IN THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 FUTURES CONTRACTS THE CRB INDEX SOARED 529 POINTS TO 21730 REFLECTING THE RISE IN GOLD A SURGE IN GRAIN PRICES AND A REBOUND IN CRUDE OIL PRICES BOND AND STOCK TRADERS USE THE CRB INDEX AS A LEADING INDICATOR OF INFLATION THERE'S A REAL AND JUSTIFIABLE INFLATIONARY SCARE IN THE MARKET SAID MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER & CO IF YOU SEE THIS KIND OF UPSURGE IN COMMODITY PRICES IN A DULL ECONOMIC ENVIRONMENT WHAT'S IT GOING TO BE LIKE WHEN THE ECONOMY PICKS UP STEAM MR METZ SAID MANY INVESTORS ARE PULLING MONEY OUT OF STOCK AND BOND MARKETS AND PUTTING IT TO WORK IN THE DEPRESSED COMMODITY MARKETS SOME ARE ALSO BUYING CERTAIN STOCKS AS PROXIES FOR INVESTING IN THE SPECULATIVE COMMODITY MARKETS GOLD AND SILVER SHARES GLITTERED YESTERDAY NEWMONT MINING RALLIED 1 3/8 TO 58 1/2 HOMESTAKE MINING ADDED 5/8 TO 20 5/8 AND COEUR D'ALENE MINES CLIMBED 1 1/4 TO 23 3/8 AND THE BIG BOARD'S MOST ACTIVE STOCK SUNSHINE MINING GAINED 3/4 TO 3 1/2 BUT TRANSPORTATION STOCKS STUMBLED BADLY IN REACTION TO THE SURGE IN OIL PRICES THE DOW JONES TRANSPORTATION AVERAGE SKIDDED 2416 POINTS TO 152807 AS CONRAIL SLUMPED 3/4 TO 52 1/4 DELTA AIR LINES PLUNGED 1 3/4 TO 47 1/8 AND UAL SLIPPED 5/8 TO 125 3/8 MR METZ SAID HE THINKS THE RECENT BATCH OF POOR ECONOMIC NEWS SHOULD BE GIVING WALL STREET SECOND THOUGHTS ABOUT OPTIMISTIC EARNINGS EXPECTATIONS FOR THE REST OF THE YEAR AND 1994 THE ASSUMPTION OF 15PLUS EARNINGS GAINS IN 1994 IS UNREALISTIC HE SAID ADDING THAT STOCK PRICES AREN'T LIKELY TO CLIMB ANY FURTHER AS A RESULT OF LOWER INTEREST RATES OR IMPROVEMENTS IN PRODUCTIVITY TANDEM COMPUTERS SLUMPED 1 1/2 TO 10 1/8 THE COMPANY SAID LATE FRIDAY THAT IT EXPECTS TO REPORT AN OPERATING LOSS FOR THE THIRD QUARTER THE RESULT WILL FALL SHORT OF WALL STREET'S EXPECTATIONS TANDEM SAID STOCKS OF OTHER COMPUTER COMPANIES WERE ALSO WEAK YESTERDAY DIGITAL EQUIPMENT DROPPED 1 3/8 TO 39 1/2 COMPAQ COMPUTER LOST 3 TO 45 AND INTERNATIONAL BUSINESS MACHINES SLID 1 3/8 TO 46 7/8 REPORTS OF LAYOFFS AT IBM AND APPLE COMPUTER HAVE SPOOKED INVESTORS IN COMPUTER STOCKS RETAIL STOCKS SAGGED EVEN THOUGH JOHNSON REDBOOK REPORTED NATIONAL RETAIL SALES WERE UP 11 IN THE FIVE WEEKS ENDED JULY 3 FROM MAY DAYTON HUDSON DECLINED 1 1/8 TO 64 1/2 MAY DEPARTMENT STORES EASED 5/8 TO 37 AND LIMITED SHED 1 1/4 TO 19 7/8 MERRILL LYNCH REDUCED ITS INTERMEDIATETERM INVESTMENT RATING ON THESE AND OTHER RETAIL STOCKS TO NEUTRAL FROM ABOVE AVERAGE GENERAL MOTORS EDGED UP 1/2 TO 44 1/8 WALL STREET'S SKEPTICAL AUTO ANALYSTS ARE SUDDENLY TURNING BULLISH ON THE CAR MAKER'S STOCK IN PART BECAUSE GM IS PLANNING TO LAUNCH A SERIES OF SIMPLER BUT POTENTIALLY MORE PROFITABLE VEHICLES DAMON ENDED UNCHANGED AT 22 1/2 THE COMPANY ACCEPTED A 23ASHARE BUYOUT OFFER FROM CORNING LATE FRIDAY AND WITHDREW FROM A DEAL WITH NATIONAL HEALTH LABORATORIES AFTER NATIONAL SAID IT WOULDN'T RAISE ITS 16ASHARE BID AMR FELL 2 5/8 TO 61 1/8 AMERICAN AIRLINES A SUBSIDIARY OF AMR SAID ITS JUNE TRAFFIC FELL 3 TO 86 BILLION REVENUE PASSENGER MILES FROM 89 BILLION IN THE YEARAGO PERIOD THE SECONDMOST ACTIVE STOCK ON THE BIG BOARD WAS SAN JUAN BASIN ROYALTY TRUST BENEFICIAL INTEREST SHARES THE SHARES ENDED UNCHANGED AT 8 3/4 AFTER A BLOCK OF FOUR MILLION SHARES WAS SOLD AT THAT PRICE A SPOKESMAN FOR WASSERSTEIN PERELLA SECURITIES WHICH CROSSED THE TRADE DECLINED TO IDENTIFY THE SELLER BUT AS OF MARCH 31 ONLY FUND AMERICAN ENTERPRISES OWNED MORE THAN FOUR MILLION SHARES OF SAN JUAN BASIN FUND AMERICAN WASN'T IMMEDIATELY AVAILABLE FOR COMMENT 9307070040 930707 FROM THIS AMBER YOU COULD CLONE A REALLY CHEAP SUIT POLYESTER HAS A ROLE TO PLAY IN THE JURASSIC PARK' ERA PHONY TREE SAP FOR SUCKERS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE EYES OF THE ENTOMBED LIZARD GLARED DEFIANTLY AS I MARVELED AT THE CRITTER'S NEARPERFECT STATE OF PRESERVATION ITS FEATURES FROZEN IN TIME FOR 30 MILLION YEARS IN A SNEAKERSIZED CHUNK OF GLOSSY AMBER I LOVED THAT LIZARD IT WAS A PALEONTOLOGICAL BEAUTY THE KIND OF PIECE AMATEUR FOSSIL COLLECTORS LIKE ME DREAM OF OWNING HAVING SHELLED OUT 800 FOR THE STUNNING SPECIMEN TWO YEARS AGO BEFORE THE JURASSIC PARK ERA I THOUGHT I HAD GOTTEN IT FOR A STEAL FROM A LOCAL GEM AND MINERAL SHOP THEN THE SCIENTISTS AT THE AMERICAN MUSEUM OF NATURAL HISTORY TOOK A GOOD LOOK AT IT THERE ARE TWO STRANDS OF HAIR IN THE PIECE OBVIOUSLY HUMAN HAIR ONE OF THE MUSEUM'S ASSOCIATE CURATORS DAVID GRIMALDI WROTE TO ME HUMAN HAIR IN A SUBSTANCE SUPPOSEDLY SEVERAL MILLION YEARS OLD IS IMPOSSIBLE MY AMBER TURNED OUT TO BE UNSATURATED POLYESTER THE STUFF USED TO REPAIR FIBERGLASS SPEEDBOATS THE LIZARD A MODERNDAY ANOLE A CARIBBEAN TREE CLIMBER IT TURNS OUT I AM NOT ALONE JAMES HARTJE A GASTROENTEROLOGIST IN SIOUX CITY IOWA ALSO FELL FOR BOGUS LIZARD FOSSILS AROUND THE SAME TIME DR HARTJE DISCOVERED LAST WEEK THAT HIS LITTLE IGUANA WAS ENCASED IN PLASTIC DR HARTJE SAYS HE GOT HIS AMBER PIECE CHECKED OUT AFTER READING ABOUT PRICES GOING VERY VERY HIGH I FIGURED THAT A LIZARD THE SIZE OF MINE WOULD BE EXTREMELY VALUABLE ALL THE HOOPLA SURROUNDING THE BLOCKBUSTER MOVIE JURASSIC PARK AND ITS PREMISE OF CLONING DINOSAURS USING DNA FROM INSECTS PRESERVED IN AMBER IS DRIVING UP DEMAND FOR THE SEMIPRECIOUS MATERIAL MUCH OF WHICH COMES FROM RUSSIA THE DOMINICAN REPUBLIC AND MEXICO SCIENTISTS LIKE DR GRIMALDI FEAR IT IS ALSO FUELING A BURGEONING COUNTERFEIT INDUSTRY TO DEMONSTRATE DR GRIMALDI HOLDS UP A NASTYLOOKING FIVEINCHLONG CENTIPEDE EMBEDDED IN PRESENTDAY KAURI TREE RESIN FROM NEW ZEALAND WE'RE SEEING MORE OF THESE ALL THE TIME DR GEORGE POINAR PROFESSOR OF ENTOMOLOGICAL SCIENCES AT THE UNIVERSITY OF CALIFORNIA IN BERKELEY SAYS HE HAS SEEN A HALFDOZEN LARGESCALE FAKES IN THE PAST SIX MONTHS ONE LIZARD TWO SCORPIONS ONE BUTTERFLY AND TWO LARGE BEETLES ADDS FRANCIS HUEBER CURATOR OF PALEOBOTANY AT THE SMITHSONIAN INSTITUTION IN WASHINGTON DC A GOOD 80 OF THE STUFF BROUGHT TO ME IS FAKE SUSAN HENDRICKSON AN AMBER SPECIALIST WHO SELLS RARE SPECIMENS TO LEADING MUSEUMS AROUND THE COUNTRY SAYS THAT DURING A RECENT TRIP TO MEXICO SHE SAW MORE FAKE AMBER THAN EVER BEING MADE IN THE SOUTHERN STATE OF CHIAPAS MOST OF THE PHONY AMBER IS SOLD TO TOURISTS SHE SAYS BUT SOME IS ALMOST CERTAINLY FILTERING UP TO THE US MARKET THE FOSSILIZED SAP OF TREES THAT LIVED MILLIONS OF YEARS AGO AMBER HAS BEEN VALUED FOR CENTURIES BY GEM AND JEWELRY LOVERS AND BY FOSSIL COLLECTORS WHO TREASURE THE RARE SPECIMENS THAT CONTAIN INSECTS AND OTHER SMALL ANIMALS TO BE SURE FAKE AMBER IS NOTHING NEW THE RELATIVELY SMALL MARKET FOR AMBER AT THE BEGINNING OF THE CENTURY WAS FLOODED BY FAKES MANUFACTURED TYPICALLY FROM THE SAP OF THE KAURI TREE BUT TODAY SOME COUNTERFEITERS USE SOPHISTICATED POLYESTERS AND PLASTICS TO MANUFACTURE GORGEOUS CHUNKS OFTEN SPORTING AN EMBEDDED INSECT A LEAF OR EVEN A LIZARD FEAR THAT THE PHONYAMBER MARKET IS CRANKING UP HAS DRIVEN ONE CONCERNED SCIENTIST TO DISTRACTION HE HAS BEEN SLEUTHING AROUND MANHATTAN'S TONIER BOUTIQUES HIS QUARRY SHADY AMBER LEANING OVER A HIGHLY POLISHED SHOWCASE IN ONE OF MADISON AVENUE'S UPSCALE JEWELRY STORES DR ALEX SHEDRINSKY ADMIRES A 3000 NECKLACE CONSISTING OF 20 FIGSIZED BEADS BEAUTIFUL ISN'T IT HE SIGHS UNFORTUNATELY THERE'S NOT ONE PIECE OF AUTHENTIC AMBER IN IT DR SHEDRINSKY A RUSSIANBORN PROFESSOR OF ORGANIC CHEMISTRY SHOULD KNOW FOR THE PAST SEVERAL YEARS THE LONG ISLAND UNIVERSITY PROFESSOR HAS SPECIALIZED IN ANALYZING AMBER FROM AROUND THE WORLD USING PYROLYSIS A HEATING PROCESS THAT PROVIDES A KIND OF CHEMICAL FINGERPRINT FOR AMBER AND ITS LOOKALIKES JUDGING BY WHAT I'VE SEEN HALF THE AMBER FOR SALE IN NEW YORK IS FAKE HE PROCLAIMS HIS CURIOSITY WAS INITIALLY PIQUED BY A SUSPICIOUSLOOKING BROOCH WORN BY A FEMALE COLLEAGUE SINCE THEN DR SHEDRINSKY'S HUNT HAS TAKEN HIM TO PLACES AS FAR OFF AS ST PETERSBURG RUSSIA AND BERLIN BAMBOOZLED COLLECTORS CAN TAKE SOME COMFORT EVEN THE EXPERTS GET SNOWED DR SHEDRINSKY RECENTLY HAD TO INFORM A LEADING MUSEUM IN BERLIN THAT FIVE OF TEN AMBER ORNAMENTS IN ITS COLLECTION WERE FAKE FOUR WERE BAKELITE A PRECURSOR OF PLASTIC AND THE FIFTH WAS POLYESTER HE'S A MAN ON A CRUSADE SAYS RISHA MELEDANDRI OWNER OF ESPIRITU A MADISON AVENUE SHOP THAT SELLS COLLECTIBLES AND JEWELRY FROM AROUND THE WORLD LAST YEAR MS MELEDANDRI ALLOWED DR SHEDRINSKY TO EXAMINE HER SOCALLED MALI AMBER DISPLAYED IN THE SHOP'S WINDOW AFTER HE QUESTIONED THE ORIGIN OF A NECKLACE SURE ENOUGH IT WAS BAKELITE CIRCA THE EARLY 1900S THE NOWENLIGHTENED MS MELEDANDRI STILL SELLS THE BAUBLES AS AFRICAN AMBER BUT SHE SAYS SHE EXPLAINS TO CUSTOMERS THAT THE 550 NECKLACES ARE MADE OF VERY OLD TRADE BEADS AND ARE NOT THE PRODUCT OF MILLIONS OF YEARS OF FOSSILIZATION DESPITE THE PROLIFERATION OF FAKES THE EXPERTS SAY AMBER ADMIRERS SHOULDN'T BE DETERRED FROM BUYING AMBER ISN'T NECESSARILY EXPENSIVE ALTHOUGH PIECES WITH INSECT INCLUSIONS DO FETCH HIGHER PRICES DR GRIMALDI SAYS AUTHENTIC SPECIMENS CONTAINING INSECTS OR PARTS OF LEAVES CAN BE HAD FOR 20 TO 300 SUCH RARE VERTEBRATES AS LIZARDS AND FROGS SELL FOR MORE THAN 10000 AND WELLPRESERVED ONES CAN GO FOR AS MUCH AS 40000 REAL AMBER WILL HAVE A GLASSY TEXTURE AND WILL BE WARM TO THE TOUCH HE SAYS THE KEY HE EMPHASIZES IS TO SEEK OUT RELIABLE DEALERS AND TO AVOID ANYTHING THAT LOOKS TOO PERFECT DR POINAR WHO LIKE DR GRIMALDI IS AT THE FOREFRONT OF PATHBREAKING RESEARCH ANALYZING ANCIENT DNA IN AMBER ADDS THAT A GOOD WAY TO TELL THE GENUINE ARTICLE AT A SHOP IS TO RUB IT FIERCELY WITH THE THUMB AND TO SMELL IT IF IT SMELLS LIKE PLASTIC PASS IT UP THE BEST IMPROMPTU TESTALTHOUGH ONE THAT FEW SHOP OWNERS ARE LIKELY TO PERMITIS TO POKE THE PIECE WITH A HOT PIN AND SMELL THE FUMES REAL AMBER EMITS A SWEET TURPENTINELIKE AROMA CLEARLY DISTINCT FROM THE CHEMICAL ODOR OF PLASTIC ANOTHER TEST IS TO PLACE THE PIECE UNDER ULTRAVIOLET LIGHT REAL AMBER WILL GLOW SHOP OWNERS SHOULD BE SUSPICIOUS OF ANYONE HAWKING AMBER OFF THE STREET 9307070039 930707 ADVERTISING MAGAZINE ADVERTISING LOSES SOME GLOSS AFTER A STRONG START EARLY THIS YEAR BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL AFTER GETTING OFF TO A PROMISING START EARLY THIS YEAR MAGAZINE ADVERTISING IS SHOWING SIGNS OF A SLOWDOWN FIGURES RELEASED BY THE PUBLISHERS INFORMATION BUREAU SHOW THAT AFTER A STRONG FIRST QUARTER AD PAGES WERE FLAT IN THE SECOND QUARTER COMPARED WITH THE 1992 PERIOD AND DROPPED 01 IN JUNE FROM THE YEAREARLIER MONTH EIGHT OF THE 10 LARGEST AD CATEGORIES SHOWED AD PAGE GAINS BUT AUTOMOTIVE ADVERTISING THE LARGEST CATEGORY GAINED LESS THAN 1 FOR THE FIRST HALF AND AFTER THE TOP 10 12 OF THE NEXT 20 CATEGORIES HAD DECLINES IN THE FIRST HALF TO BE SURE THE FIGURES FOR THE FIRST HALF STILL AMOUNT TO THE STRONGEST GAIN IN MAGAZINE AD PAGES AND REVENUE IN FOUR YEARS BUT ASIDE FROM THE NUMBERS PUBLISHING EXECUTIVES SEE TOUGHER TIMES AHEAD AS ADVERTISERS CUT BACK AND IN SOME CASES PULL OUT OF STANDING COMMITMENTS SEVERAL TOP EXECUTIVES SAY SOME OF THEIR MAJOR TITLES ARE BOOKING DISAPPOINTING AD VOLUME FOR THE TRADITIONALLY STRONG MONTHS OF SEPTEMBER AND OCTOBER HOW ABOUT THE FOURTH QUARTER TRADITIONALLY A ROBUST PERIOD FOR SOME TITLES DON'T BET ON IT PUBLISHERS SAY MANY NATIONAL ADVERTISERS ARE CHARTING THEIR AD SPENDING ONLY WEEKS IN ADVANCE AND PREDICT SPENDING WILL TURN STINGIER ONE PARTICULARLY OMINOUS INDICATOR SEVERAL PUBLISHERS REPORT THAT KRAFT GENERAL FOODS THE LARGE US FOOD COMPANY HAS CUT ITS ADVERTISING COMMITMENTS TO MAGAZINES FOR THE REMAINDER OF 1993 IN GENERAL ADVERTISERS HAVE TOLD PUBLISHERS THEY ARE SKITTISH AS THEY WATCH A MUDDLED WHITE HOUSE AND LOWERTHANEXPECTED CONSUMER SPENDING KRAFT A UNIT OF PHILIP MORRIS DECLINED TO COMMENT UNCERTAINTY IS THE LAST THING MAGAZINE PUBLISHERS NEED THEY GENERALLY LED OTHER MEDIA COMPANIES INTO THE RECESSION IN 1990 AFTER SEVERAL PAINFUL YEARS OF PARING PAYROLLS CLOSING MAGAZINES AND ENDURING SMALLER PROFITS PUBLISHERS WERE ONLY RECENTLY ENJOYING A BIT OF A COMEBACK I WORRY ABOUT THE SECOND HALF SAYS REGINALD K BRACK JR CHAIRMAN OF TIME INC A UNIT OF TIME WARNER THAT PUBLISHES 30 MAGAZINES IF THERE IS A BIG RECOVERY AFOOT IN THE ECONOMY I DON'T THINK A LOT OF OUR ADVERTISERS ARE EXPERIENCING IT IN TERMS OF ADVANCE AD BOOKINGS IT'S STILL SOFT IN A LOT OF CATEGORIES THAT THE MAGAZINE BUSINESS COULD RETURN TO HARD TIMES AFTER SO SHORTLIVED A REBOUND RAISES THE QUESTION OF WHETHER BIG ADVERTISERS ARE COMING TO VIEW THEM AS DISTINCTLY SECONDARY TO OTHER ADVERTISING MEDIA AMID THEIR SLOWDOWN MAGAZINES FACE THE PROSPECT OF NEW COMPETITION FROM UPSTART CABLE CHANNELS AND EVEN EVENTUALLY NEW INTERACTIVE MULTIMEDIA PLATFORMS MR FARELLA SAYS THE FUNDAMENTAL ROLE OF MAGAZINES COULD BE CHANGING THE THINGS THAT MAGAZINES DO BEST NOW MIGHT IN FACT BE THE EXCLUSIVE REASON TO USE MAGAZINES IN THE FUTURE TO REACH AN UPSCALE SEGMENT OF THE POPULATION THAT ISN'T WATCHING TV SEVERAL MAJOR ADVERTISERS SAY THEY HAVEN'T LOST FAITH IN THE MAGAZINE FORMAT BUT EVEN SUPPORTERS WILL PROBABLY SPEND LESS THIS YEAR AND POSSIBLY IN FUTURE YEARS AS THEY FOCUS THEIR SPENDING MORE SHARPLY ON KEY DEMOGRAPHIC GROUPS GENERAL MOTORS ONE OF THE LARGEST ADVERTISERS IN MAGAZINES WILL BE SPREADING ITS AD MONEY AMONG FEWER PUBLICATIONS AND FEWER TV OUTLETS WE WANT FEWER BUT DEEPER RELATIONSHIPS SAYS PHILIP GUARASCIO MARKETING AND ADVERTISING GENERAL MANAGER FOR GM'S NORTH AMERICAN OPERATIONS AN EXAMPLE OF A DEEPER RELATIONSHIP IS GM'S DEAL WITH HACHETTE FILIPACCHI MAGAZINES TO RUN ADS IN ITS CAR MAGAZINES AND ALSO CREATE A MAGAZINE FOR WOMEN CALLED KNOW HOW TO APPEAR IN THE FALL COMPANIES THAT CAN PROVIDE SUCH EXTRAS WILL HAVE A GREATER OPPORTUNITY IN GM SPENDING MR GUARASCIO SAYS GM IS VAGUE ON SPENDING AMOUNTS FOR 1993 BUT IN 1992 ITS AD SPENDING FOR PASSENGER CARS IN CONSUMER MAGAZINES TOTALED 367 MILLION A SLIGHT DROP FROM 372 MILLION IN 1991 ACCORDING TO COMPETITIVE MEDIA SERVICE FORMERLY LNA/ARBITRON MULTIMEDIA SERVICE LACKLUSTER CONSUMER CONFIDENCE HAS EXTENDED BEYOND PACKAGED GOODS SOME OF HEARST'S MAGAZINES SEE A DISAPPOINTING FALL AHEAD D CLAEYS BAHRENBURG PRESIDENT OF HEARST MAGAZINES SAYS SEPTEMBER ISSUES FOR REDBOOK AND ESQUIRE WILL BE OFF IN AD PAGES FROM LAST YEAR WHILE TOWN & COUNTRY AND HOUSE BEAUTIFUL WILL BE FLAT IF YOU HAVE A HOT MAGAZINE YOU ARE FINE MR BAHRENBURG SAYS HEARST DOES HAVE SUCH A MAGAZINE IN HARPER'S BAZAAR WHICH IS UP NEARLY 80 FOR THE FIRST HALF BUT OTHERWISE HE ADDS WE ARE STILL CAUGHT IN THE CYCLE AND NOT QUITE OUT OF IT OTHER TITLES SEEM TO BE TAKING A BEATING TIME'S SPORTS ILLUSTRATED IS DOWN 14 FOR THE HALF ALTHOUGH IT HAS OFFSET SOME OF THE SHORTFALL BY SIGNING UP ADVERTISERS IN BROADER PROMOTIONAL DEALS IT USES NEW TECHNOLOGY TO CREATE TARGETED EDITIONS FOR ADVERTISERS AND READERS AND IS STARTING A TOURING INTERACTIVE SPORTS PROGRAM FOR COLLEGE CAMPUSES LETTING ADVERTISERS SPONSOR EVENTS ON A NATIONAL AD BASIS YES THE PICTURE IS DOWN SAYS MR BRACK OF TIME WARNER BUT ON A NET REVENUE BASIS FOR THE MAGAZINE IT'S STRONG IN THE MIDST OF THE SLUMP SOME NEW MAGAZINES WITH A WELLDEFINED TARGET SHOW PROMISE TIME WARNER'S URBAN CULTURE MAGAZINE VIBE EXPECTS TO CARRY MORE THAN 50 AD PAGES FROM THE LIKES OF NIKE SONY ABSOLUT AND CALVIN KLEIN IN ITS FIRST ISSUE IN SEPTEMBER I SENSE ADVERTISERS WANT MORE TARGETED MAGAZINES SAYS VIBE PUBLISHER JOHN ROLLINS WE SPEAK TO 18TO29YEAROLDS I SEE MUCH GREATER RESPECT BEING GIVEN THIS MARKET THAN EVER BEFORE A SELECTION OF MAGAZINES WITH AD PAGES GAINS AND DECLINES IN THE FIRST HALF OF 1993 COMPARED WITH THE SAME PERIOD IN 1992 A TELEVISION COMMERCIAL FOR MILLER BREWING CO'S MILLER LITE THAT POKED FUN OF LAWYERS WAS PULLED SATURDAY ONE DAY AFTER A SHOOTING SPREE IN A SAN FRANCISCO LAW FIRM THAT LEFT NINE PEOPLE DEAD INCLUDING THE ASSAILANT FROM A SELFINFLICTED WOUND AND SIX OTHERS WOUNDED A SPOKESMAN FOR MILLER SAYS THE SPOT IS PULLED INDEFINITELY OUT OF SENSITIVITY TO THE SAN FRANCISCO TRAGEDY THE SPOKESMAN SAYS NO DECISION HAS BEEN ABOUT WHEN THE ADVERTISEMENT WILL BE BROADCAST AGAIN THE SPOT SHOWS WHAT WOULD HAPPEN IF HOT SHOT LAWYERS SUDDENLY BECAME TARGETS FOR LASSOROPING COWBOYS AT A RODEO THE RESULT BIG LAWYER ROUNDUP WHERE COWBOYS CHASE AND TIE UP ATTORNEYS INCLUDING A HEAVYSET TAX LAWYER THE COMMERCIAL FROM AGENCY LEO BURNETT IS ONE OF FOUR NEW MILLER LITE ADS THAT BEGAN AIRING NATIONALLY JUNE 9 AND WHICH REVISED THE POPULAR TASTE GREAT LESS FILLING SLOGAN THE REMAINING THREE SPOTS WILL CONTINUE TO BE BROADCAST MILLER SAYS RAMADA INTERNATIONAL'S RENAISSANCE HOTELS CAN CONTINUE RUNNING ADS THAT FEATURE ENDORSEMENTS FROM THE HYATTS THE HILTONS AND THE MARRIOTTS UNDER A DECISION BY A US DISTRICT COURT JUDGE IN MANHATTAN RAMADA INTERNATIONAL HOTELS & RESORTS A UNIT OF NEW WORLD HOTELS HOLDINGS OF HONG KONG HAD BEEN RUNNING PRINT ADS THAT FEATURED REALLIFE COUPLES WHO HAPPENED TO SHARE THE NAMES OF THE RENAISSANCE CHAIN'S COMPETITORS NEXT TO A PICTURE OF FRANK AND CINDY MARRIOTT FOR INSTANCE WAS A BRIEF TESTIMONIAL AND THE HEADLINE WHY THE MARRIOTTS STAY AT RENAISSANCE RENAISSANCE AGENCY BACKUS TURNER & PARTNERS CREATED THE ADS HYATT MARRIOTT AND HILTON HOTELS SUED RAMADA INTERNATIONAL CHARGING THAT THE ADS INFRINGED ON THEIR TRADEMARKS AND CREATED THE FALSE IMPRESSION THAT THEY WERE ENDORSING THEIR RIVAL'S HOTELS JW MARRIOTT JR MARRIOTT'S CHAIRMAN AND W BARRON HILTON HILTON'S CHAIRMAN ALSO HAD SUED RAMADA CHARGING THAT THE ADS INVADED THEIR PRIVACY HILTON HOTELS AND MR HILTON RECENTLY DROPPED THEIR SUITS THOSE ADVERTISEMENTS EVEN ON A CURSORY READING ARE CLEARLY TONGUEINCHEEK JUDGE ROBERT OWEN SAID IN THE DECISION A MARRIOTT SPOKESMAN SAID THE COMPANY WAS CONSIDERING WHETHER TO APPEAL THE DECISION HYATT EXECUTIVES COULDN'T BE REACHED BEEFEATER ACCOUNT ALLIEDLYONS'S HIRAM WALKER & SONS LTD TAPPED FCB/LEBER KATZ PARTNERS THE NEW YORK OFFICE OF FOOTE CONE & BELDING COMMUNICATIONS TO CREATE ADS FOR BEEFEATER GIN WHICH LEADING NATIONAL ADVERTISERS SAYS WAS A 3 MILLION ACCOUNT LAST YEAR BESTED IN THE REVIEW WERE BLOOM FCA OF NEW YORK EURO RSCG'S MESSNER VETERE BERGER MCNAMEE SCHMETTERER AND THE INCUMBENT THE CHICAGO OFFICE OF EISAMAN JOHNS & LAWS HIRAM WALKER RECENTLY REASSIGNED THE CANADIAN CLUB ACCOUNT WHICH ALSO HAD BEEN AT THE CHICAGO OFFICE OF EISAMAN TO SAATCHI & SAATCHI'S CME KHBB OF MINNEAPOLIS 9307070038 930707 WHO'S NEWS IBM GIVES THE HEAD OF EUROPEAN PC UNIT A BROADER TERRITORY LONDON THE HEAD OF INTERNATIONAL BUSINESS MACHINES CORP'S SUCCESSFUL EUROPEAN PERSONALCOMPUTER UNIT HAS BEEN NAMED TO A NEW POST SUPERVISING IBM'S PC OPERATIONS IN EUROPE AND ASIA WILLIAM MCCRACKEN 51 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF PRESIDENT OF PC OPERATIONS FOR EUROPE THE MIDDLE EAST AFRICA ASIA AND THE PACIFIC AN IBM SPOKESMAN SAID MR MCCRACKEN'S EXPANDED RESPONSIBILITY WHICH TOOK EFFECT IN MIDMAY BUT HADN'T BEEN ANNOUNCED OUTSIDE THE COMPANY IS INTENDED TO HELP IBM IMPROVE THE PERFORMANCE OF ITS PC BUSINESS IN EAST ASIA HISTORICALLY THE WEAKEST PIECE OF IBM'S GLOBAL PC BUSINESS SINCE BECOMING GENERAL MANAGER OF IBM'S EUROPEAN PC BUSINESS IN 1991 MR MCCRACKEN HELPED TO PULL THE OPERATION OUT OF RED INK AND RECOVER MARKET SHARE TO DO THAT HE DEVISED SEVERAL NEW PC MARKETING STRATEGIES THAT WERE LATER ADOPTED ELSEWHERE IN THE CORPORATION MOST NOTABLY CREATING A SEPARATE SUBSIDIARY TO PEDDLE CUTPRICE NOFRILLS PCS THAT DIDN'T CARRY THE IBM BRAND NAME THE STRATEGY WAS INTENDED TO GIVE IBM A CRACK AT THE LOWEST END OF THE PC MARKET WITHOUT SULLYING THE UPMARKET IMAGE OF THE IBM BRAND NAME MR MCCRACKEN IS SUCCEEDED AS EUROPEAN PC GENERAL MANAGER BY GIUSEPPE GIULIANI MR GIULIANI 44 WAS HEAD OF THE BUDGETPRICE PC SUBSIDIARY CALLED INDIVIDUAL COMPUTER PRODUCTS INTERNATIONAL LTD 9307070037 930707 TECHNOLOGY STUDY LINKS INCREASES IN STUDENT TEST SCORES TO SCHOOL REFORM WASHINGTON STATES THAT IMPROVED THE QUALITY OF THEIR SCHOOLS DURING THE PAST DECADE ARE STARTING TO SEE INCREASES IN STUDENTS' MATH AND SCIENCE ACHIEVEMENT TEST SCORES A REPORT FOUND WHERE STATES REALLY DID GET THEIR ACT TOGETHER IN THE '80S AND PUSHED HARD ON SYSTEMIC REFORM WE SEEM TO GET A PAYOFF SAID GORDON AMBACH EXECUTIVE DIRECTOR OF THE COUNCIL OF CHIEF STATE SCHOOL OFFICERS WHICH PREPARED THE REPORT STUDENTS' MATH AND SCIENCE TEST SCORES INCREASED IN STATES THAT BOOSTED TEACHER QUALITY COURSE REQUIREMENTS AND COURSE CONTENT MR AMBACH SAID THESE FINDINGS COME AT A TIME WHEN CONGRESS IS CONTEMPLATING LEGISLATION THAT WOULD DEVELOP MODEL STANDARDS TO HELP STATES ACHIEVE EDUCATION GOALS ADOPTED BY THE WHITE HOUSE AND THE NATION'S GOVERNORS IN 1989 THE STUDY WHICH ANALYZED MATH AND SCIENCE ACHIEVEMENT TEST SCORES RELEASED EARLIER THIS YEAR FOUND THAT 18 STATES SIGNIFICANTLY INCREASED THEIR MATH SCORES FROM 1990 TO 1992 STATES IN THE BOTTOM FOURTH OF MATH PROFICIENCY HAD AN AVERAGE OF 52 OF STUDENTS IN CLASSES THAT TEACHERS SAID LACKED ADEQUATE MATERIALS THE STUDY SHOWED STATES IN THE TOP FIFTH MEANWHILE HAD ONLY 24 OF STUDENTS IN CLASSES WHERE TEACHERS COMPLAINED OF INADEQUATE RESOURCES MATH ACHIEVEMENT SCORES WERE SIGNIFICANTLY HIGHER FOR STUDENTS WHO HAD ACCESS TO CALCULATORS THE STUDY ALSO SHOWED 9307070036 930707 WHO'S NEWS SALOMON BROTHERS SAYS SCHOLES HAS LEFT FIRM FOR REGULATORY ROLE NEW YORK MYRON SCHOLES COHEAD OF SALOMON BROTHERS INC'S DERIVATIVES GROUP AND ITS CHIEF QUANTITATIVE GURU HAS LEFT THE INVESTMENT BANK TO TAKE AN INCREASED ROLE IN FEDERAL REGULATION OF THE DERIVATIVES MARKET SALOMON'S DERIVATIVES GROUPS WILL NOW BE HEADED BY MR SCHOLES'S COHEAD RICHARD A STUCKEY A MANAGING DIRECTOR AT THE FIRM SALOMON BROTHERS IS A UNIT OF SALOMON INC MR SCHOLES SAID FEDERAL REGULATORS HAVE ASKED FOR HIS INPUT INTO PROPOSED REGULATION OF THE DERIVATIVES MARKET AND HIS RESIGNATION COMING AT THE SAME TIME THAT HIS TWOYEAR SALOMON CONTRACT EXPIRES WOULD PREVENT ANY APPEARANCE OF A CONFLICT OF INTEREST THE REGULATORY FRONT IS GOING TO BE VERY INTERESTING HE ADDED DERIVATIVES WHICH ARE CUSTOMIZED SECURITIES DESIGNED TO ACT A CERTAIN WAY WHEN AN UNDERLYING STOCK BOND CURRENCY OR COMMODITY MOVES IN PRICE HAVE BECOME A SOURCE OF HEFTY PROFITS FOR WALL STREET FIRMS MR SCHOLES'S PROJECTS AT SALOMON HAVE INCLUDED DEVELOPING RISKANALYSIS COMPUTER PROGRAMS FOR THE DERIVATIVES MARKETS AND FORMULAS FOR TRADER COMPENSATION THAT INCREASE INCENTIVES FOR LONGTERM VERSUS SHORTTERM PERFORMANCE HE WILL REMAIN A CONSULTANT TO SALOMON MR SCHOLES COINVENTOR OF THE BLACKSCHOLES MATHEMATICAL FORMULA FOR PRICING SECURITIES OPTIONS JOINED SALOMON BROTHERS AS A MANAGING DIRECTOR IN JULY 1991 HE IS WIDELY CREDITED AS ONE OF THE FATHERS OF THE MODERN OPTIONS MARKETS MR SCHOLES 52 YEARS OLD IS ALSO A PROFESSOR OF FINANCE AT STANFORD UNIVERSITY'S BUSINESS SCHOOL MR STUCKEY DECLINED TO COMMENT 9307070035 930707 LAW LEGAL BEAT RISKOFILLNESS CASES ARE GETTING UNSYMPATHETIC EAR FROM COURTS BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL PEOPLE WHO ARE EXPOSED TO SUBSTANCES THAT INCREASE THEIR RISK OF DISEASE ARE GETTING AN UNSYMPATHETIC MESSAGE FROM COURTS WAIT UNTIL YOU'RE SICK TO SUE THE MESSAGE IS APPARENTLY DESIGNED TO STEM THE RECENT FLOW OF LAWSUITS BY INDIVIDUALS WHO HAVE BEEN EXPOSED TO BUT NOT YET MEDICALLY AFFECTED BY TOXIC MATERIALS OR CONTAGIOUS DISEASES LATELY COURTS HAVE TOSSED OUT RISKOFDISEASE CASES IN A MAJORITY OF STATES INCLUDING NEW YORK PENNSYLVANIA COLORADO ILLINOIS FLORIDA AND TENNESSEE THE RULINGS DON'T PREVENT PEOPLE FROM GETTING COMPENSATED FOR CURRENT COSTS INCURRED BECAUSE OF THE EXPOSURE INCLUDING ANY MEDICAL TESTS THAT PROVE NECESSARY BUT THEY DO BAR THE COLLECTION OF MONEY DAMAGES TODAY FOR ILLNESSES THAT MAY OR MAY NOT DEVELOP SOME TIME IN THE FUTURE KEEPING PLAINTIFFS AT BAY UNTIL THEY ARE SICK JUST MAKES A WHOLE LOT OF SENSE SAYS KATHY CONDO A LAWYER AT THE LAW FIRM REED SMITH SHAW & MCCLAY IN PITTSBURGH WHAT YOU HAVE WITHOUT IT IS THIS LOTTERY WHERE YOU'RE BOUND TO PEOPLE FOR SPECULATIVE INJURIES THAT THEY NEVER GET THE TREND IN SUCH DECISIONS IS NOT ENTIRELY PRODEFENDANT HOWEVER IN TANDEM WITH THEIR RULINGS AGAINST RISKOFDISEASE CASES COURTS ARE EXTENDING THE TIME LIMITS WITHIN WHICH PEOPLE CAN SUE AFTER BEING EXPOSED TO A CONTAMINANT THIS REMOVES AN OBSTACLE THAT HAD BARRED MANY PEOPLE FROM SUING ONCE A DISEASE DEVELOPED THE PROBLEM WITH RISKOFDISEASE CLAIMS COURTS HAVE SAID IS THAT THERE ISN'T ENOUGH EVIDENCE OF A PLAINTIFF'S CONDITION TO PUT A PRICE ON HIS CLAIM THE JURY IS REQUIRED TO DETERMINE A DOLLAR VALUE FOR MEDICAL EXPENSES AND LOST WAGES FROM AN UNKNOWN CONDITION THAT MAY OCCUR MANY YEARS IN THE FUTURE THAT FORCES DEFENDANTS TO PAY DAMAGE AWARDS THAT HAVE BEEN TALLIED LARGELY THROUGH GUESSWORK IN A CASE THAT'S TYPICAL OF MANY RECENT DECISIONS A PENNSYLVANIA APPEALS COURT RULED LAST YEAR THAT PLAINTIFFS IN ASBESTOS CASES CAN'T GET DAMAGES FOR THE RISK OF FUTURE DISEASE BUT MUST INSTEAD FILE SEPARATE CLAIMS FOR ILLNESSES AS THEY DEVELOP ASBESTOS ONCE USED WIDELY IN INSULATION HAS PROMPTED MANY RISKOFDISEASE CASES BECAUSE IT CAN CAUSE CANCER AND OTHER ILLNESSES YEARS AFTER EXPOSURE THE PENNSYLVANIA DECISION CAME IN THE CASE OF ANTHONY MARINARI WHO DISCOVERED THAT HE HAD A NONMALIGNANT ASBESTOS CONDITION IN 1983 BUT WASN'T DIAGNOSED WITH LUNG CANCER UNTIL 1987 TWO YEARS AFTER THE STATUTE OF LIMITATIONS HAD RUN BALANCING ITS REJECTION OF RISKOFDISEASE CLAIMS THE COURT ALSO RULED THAT THE STATUTE OF LIMITATIONS ON MR MARINARI'S CANCER CLAIM DIDN'T BEGIN TO RUN UNTIL THE DISEASE WAS DISCOVERED INSTEAD OF WHEN HE FIRST REALIZED HE WAS EXPOSED TO IT THE RULING ALLOWED HIS CASE TO GO FORWARD QUOTING A FLORIDA COURT THAT HAD RULED SIMILARLY IN A SEPARATE CASE THE COURT SAID THAT ALLOWING RECOVERY OF RISKOFCANCER DAMAGES NOT ONLY ENCOURAGES ANTICIPATORY LAWSUITS BUT RUNS COUNTER TO THE DESIRABLE GOAL THAT CASES BE DECIDED ON THE BEST QUALITY EVIDENCE AVAILABLE IN MOST STATES THOUGH PLAINTIFFS CAN STILL SUE PRIOR TO AN ILLNESS IF THEY CAN PROVE THAT THEY HAVE SUFFERED ACTUAL DAMAGES BECAUSE OF THE FEAR AND ANXIETY THAT THE EXPOSURE HAS CAUSED THEM IN MANY CASES THEY CAN ALSO REQUIRE THE DEFENDANT TO PAY THE EXPENSE OF MONITORING THEIR MEDICAL CONDITION TO DETECT THE ONSET OF ANY DISEASE COURTS TYPICALLY ALLOW FEAROFDISEASE AND MEDICALMONITORING CASES BECAUSE THEY INVOLVE PLAINTIFFS' CURRENT STATE OF MIND IN CONTRAST TO RISKOFDISEASE CASES WHICH INVOLVE FUTURE CONDITIONS INDEED WITH COURTS SUCH AS THE ONE IN PENNSYLVANIA EXTENDING THE TIME LIMITS FOR SUING PLAINTIFFS MAY BE ABLE TO RECOVER TWICE FOR THE SAME ILLNESS FIRST FOR THE MONITORING AND FEAR OF FUTURE DISEASEAND THEN ALSO FOR THE DISEASE ITSELF WHEN IT OCCURS YOU'VE GOT A LOT OF OPPORTUNITIES NOW AND IN THE FUTURE TO RECOVER FOR THE SAME EVENT SAYS ARVIN MASKIN A DEFENSE LAWYER AT THE NEW YORK LAW FIRM WEIL GOTSHAL & MANGES BUT COURTS SEEM TO BE AWARE OF THIS RISK AND MAY BE TOUGHENING THE STANDARDS FOR FEAROFILLNESS CASES IN A SEPARATE PENNSYLVANIA CASE FILED BY SEVERAL MEN ALLEGEDLY EXPOSED TO ASBESTOS AN APPEALS COURT SAID THE MEN'S FEAR OF CANCER WAS UNACCEPTABLY SPECULATIVE TO ALLOW THEIR CLAIMS THE COURT SAID WOULD REINTRODUCE INTO ASBESTOS LITIGATION THE VERY UNCERTAINTY THAT COURTS INTENDED TO REMOVE BY BARRING RISKOFDISEASE CASES THE PRESIDENT OF THE STATE BAR OF CALIFORNIA RESPONDING TO THE KILLINGS LAST WEEK AT THE SAN FRANCISCO LAW FIRM PETTIT & MARTIN PROPOSED HEIGHTENED PENALTIES FOR CRIMES AGAINST LAWYERS IN NEWS CONFERENCES MONDAY AND YESTERDAY HARVEY SAFERSTEIN SAID ATTACKS MOTIVATED BY ANGER AT THE LEGAL PROFESSION ARE HATE CRIMES JUSTIFYING STIFFER SENTENCES HE SAID HE WOULD ASK THE BAR'S GOVERNING BOARD TO PROPOSE STATE LEGISLATION REQUIRING A VICTIM'S STATUS AS A LAWYER TO BE CONSIDERED DURING SENTENCING MANY STATES INCLUDING CALIFORNIA ALREADY HAVE SUCH LAWS ON THE BOOKS FOR VICTIMS WHO ARE POLICE OFFICERS FIREFIGHTERS AND OTHER PUBLIC SERVANTS LAWYERS ARE OFFICERS OF THE COURT MR SAFERSTEIN SAID IF THEY ARE FEARFUL OF DOING THEIR JOB AND TAKING ON UNPOPULAR CAUSES I THINK WE'VE GOT A PROBLEM THE GUNMAN GIAN LUIGI FERRI OF LOS ANGELES MAY HAVE BEEN MOTIVATED BY ANGER AFTER A BUSINESS DEAL SOURED LAWYERS AT PETTIT & MARTIN HAD GIVEN HIM INVESTMENT ADVICE SEVERAL YEARS AGO MR FERRI WHO FATALLY SHOT HIMSELF AFTER KILLING SEVEN PEOPLE AND WOUNDING SIX OTHERS LAST THURSDAY REPORTEDLY CARRIED A LIST OF NAMES THAT INCLUDED LAWYERS AT THE FIRM MR SAFERSTEIN SAID HE WASN'T SURE IF MR FERRI'S MOTIVATION WAS A PARTICULAR PIECE OF LAWYERBASHING OR LAWYERBASHING GENERALLY BUT THE STATE BAR OFFICIAL CONDEMNED THE APPARENT UPTICK IN THE INCIDENCE OF LAWYER JOKES AND TELEVISION COMMERCIALS THAT MAKE FUN OF LAWYERS HOWEVER SOME MEMBERS OF THE PROFESSION QUESTIONED MR SAFERSTEIN'S APPROACH LAWYERS SHOULD FOCUS ON POSITIVELY IMPROVING THEIR PUBLIC IMAGE RATHER THAN DEFENSIVELY PROTECTING THEMSELVES FROM THE CONSEQUENCES OF THAT IMAGE SAID EVAN CAMINKER A PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES SCHOOL OF LAW IF ANYTHING THE SUGGESTION THAT LAWYERS DESERVE EXALTED STATUS AS BELEAGUERED VICTIMS IS MORE LIKELY TO PERPETUATE THE STEREOTYPE THAT LAWYERS ARE ALLTOOOFTEN SELFINTERESTED IN THEIR MANIPULATIONS OF LEGAL RULES A US APPEALS COURT THREW OUT FEDERAL RACKEETERING CONVICTIONS AGAINST TWO MEMBERS OF A WEST VIRGINIA HARE KRISHNA COMMUNITY STATING THAT SOME OF THE EVIDENCE ADMITTED AT TRIAL UNFAIRLY PREJUDICED THEIR CASES SOME OF THE CRIMES THE DEFENDANTS WERE CHARGED WITH INVOLVED THEIR COLLECTION OF DONATIONS FOR THE HARE KRISHNA INCLUDING THE DISTRIBUTION OF COUNTERFEIT COPYRIGHTED BUMPER STICKERS AND FALSELY IDENTIFYING THEMSELVES AS MEMBERS OF A PARTICULAR CHARITY THE COURT SENT THE CASES BACK TO THE LOWER COURTS FOR RETRIAL ON THE GROUNDS THAT PROSECUTORS' ACCUSATIONS THAT ONE OF THE DEFENDANTS AND OTHER COMMUNITY MEMBERS ENGAGED IN CHILD MOLESTATION ABUSE OF WOMEN AND HOMOSEXUALITY WERE UNDULY PREJUDICIAL AND MAY HAVE HURT THE DEFENDANTS' CHANCES FOR A FAIR TRIAL A THIRD HARE KRISHNA FOLLOWER'S CONVICTION FOR MAIL FRAUD WAS THROWN OUT BECAUSE OF INSUFFICIENT EVIDENCE SEA CHANGE MARITIME LAWYERS EMERY W HARPER GREGGORY B MENDENHALL FRANCIS X NOLAN III AND JOHN E BRADLEY JOINED SCHNADER HARRISON SEGAL & LEWIS AS PARTNERS IN THE PHILADELPHIA FIRM'S NEW YORK OFFICE IN WHAT THE FIRM CALLS AN EXPANSION OF ITS INTERNATIONALTRANSPORTATION PRACTICE INTO MARITIME ISSUES MR HARPER WAS A PARTNER IN LORD DAY & LORD BARRETT SMITH AND MR MENDENHALL WAS AN ATTORNEY AND CONSULTANT TO CLIENTS AT LORD DAY MESSRS NOLAN AND BRADLEY WERE PARTNERS IN NOURSE & BOWLES AMY STEVENS IN LOS ANGELES AND KATIA HETTER IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9307070034 930707 CREDIT RATINGS COMMONWEALTH EDISON CO CHICAGO STANDARD & POOR'S CORP AFFIRMED ITS CURRENT RATINGS ON 82 BILLION OF DEBT OF THIS UTILITY COMPANY AND REVISED ITS RATINGS OUTLOOK TO STABLE FROM NEGATIVE THE RATINGS COMPANY SAID ITS PRESENT RATINGS FOR THE COMMONWEALTH EDISON'S DEBT ADEQUATELY REFLECT THE ADVERSE IMPACT OF POTENTIALLY SIZABLE REFUNDS TO CUSTOMERS FOR WHICH COMMONWEALTH MAY BE LIABLE IN JANUARY ILLINOIS REGULATORS ORDERED THE UTILITY TO REFUND 600 MILLION TO CUSTOMERS THROUGH A RATE CUT ALTHOUGH COMMONWEALTH HAS APPEALED THE RULING S&P SAID IT IS LIKELY TO BE UPHELD IN ADDITION COMMONWEALTH EDISON REMAINS EXPOSED TO POTENTIALLY LARGE DISALLOWANCES ON COAL COSTS THAT MAY REQUIRE REFUNDS S&P DOWNGRADED COMMONWEALTH EDISON'S DEBT LAST AUGUST AND AGAIN IN JANUARY OF THIS YEAR WITH YESTERDAY'S RATINGS MOVE THE COMPANY'S SENIOR UNSECURED DEBT REMAINS RATED TRIPLEB ITS SENIOR SECURED DEBT PREFERRED AND PREFERENCE STOCK IS TRIPLEBMINUS AND ITS COMMERCIAL PAPER IS A2 S&P SAID THE UTILITY'S RATINGS OUTLOOK WAS UPGRADED TO STABLE S&P SAID BECAUSE ON A RELATIVE RISK BASIS COMMONWEALTH EDISON APPEARS TO BE WELL POSITIONED AT THE LOWER END OF THE MIDTRIPLEB RATING CATEGORY THE RATINGS SERVICE SAID THE UTILITY CONTINUES TO FACE SIGNIFICANT CHALLENGES INCLUDING THE CONTINUING ADVERSARIAL RELATIONSHIP WITH THE INTERSTATE COMMERCE COMMISSION A WEAK COMPETITIVE POSITION AND MIXED NUCLEAR PERFORMANCE MINOLTA CAMERA CO TOKYO MOODY'S INVESTORS SERVICE INC DOWNGRADED THIS COMPANY'S LONGTERM DEBT RATINGS TO SINGLEB1 FROM BA2 AND LOWERED THE RATING OF ITS FINANCING UNIT MINOLTA EUROPE FINANCE BV TO SINGLEB3 FROM BA3 THE RATING AFFECTS 2378 MILLION OF THE CAMERA MAKER'S LONGTERM DEBT MOODY'S SAID THE DOWNGRADE REFLECTS ITS BELIEF THAT MINOLTA'S CASH FLOW WILL CONTINUE TO DETERIORATE OVER THE INTERMEDIATE TERM BECAUSE OF DEPRESSED MARKETS FOR ITS CORE BUSINESSES AND STRONG COMPETITION THE LOWER RATING FOR MINOLTA EUROPE'S SENIOR DEBT STEMS FROM MOODY'S OPINION THAT THE KEEP WELL AGREEMENT BETWEEN MINOLTA EUROPE AND MINOLTA DOES NOT OFFER DEBT HOLDERS ADEQUATE POWER TO ENFORCE POSSIBLE CLAIMS AGAINST MINOLTA THE REPORT SAID MOODY'S NOTED THAT MINOLTA IS STILL VERY DEPENDENT ON SINGLE LENS REFLEX CAMERAS FOR THE BULK OF IT SALES AND SAID A TURNAROUND IN DEMAND FOR CAMERAS IS UNLIKELY OVER THE NEXT FEW YEARS KEEN PRICE COMPETITION IS ALSO LIKELY TO CONTINUE MOODY'S SAID 9307070033 930707 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB BILL CLINTON HAS THE SOUL OF A FREE TRADER THE QUESTION IS WHETHER HE ALSO HAS THE HEART AND THE GUTS TO BE ONE IN HIS CAMPAIGN FOR PRESIDENT MR CLINTON MANAGED TO SOW PLENTY OF CONFUSION ABOUT HIS VIEWS ON FREE TRADE HE SPOUTED ALL THE RIGHT LINES ABOUT THE JOYS OF LOWERING TRADE BARRIERS AND THE EVILS OF PROTECTIONISM BUT THEN SOWED DEEP DOUBTS WITH HIS VACILLATION AND HANDWRINGING BEFORE GIVING A QUALIFIED ENDORSEMENT TO THE NORTH AMERICAN FREE TRADE AGREEMENT WITH CANADA AND MEXICO IN OFFICE HE HAS ADDED TO THE CONFUSION BY PUSHING THE US INTO A FAR MORE HAWKISH TRADE STANCE TOWARD JAPAN BUT TO HEAR PRESIDENT CLINTON TALK AT LENGTH ABOUT INTERNATIONAL ECONOMICS IS TO SENSE THAT HIS INSTINCTS PULL HIM MORE TOWARD THE FREETRADER VIEWS OF GEORGE BUSH THAN TOWARD THE TRADEWARRIOR VIEWS OF HOUSE MAJORITY LEADER RICHARD GEPHARDT TO THE EXTENT HE HAS TACKED TOWARD PROTECTIONISM HE SEEMS TO BE MOVING AGAINST HIS OWN INNER COMPASS MANEUVERING FOR TEMPORARY NEGOTIATING ADVANTAGE THE DANGER FOR MR CLINTON IS THAT IF HE TACKS TOO FAR IN THIS DIRECTION HE WILL BE CAPSIZED BY THE LATENT PROTECTIONIST SENTIMENT RUNNING THROUGH HIS OWN DEMOCRATIC PARTY AND AMONG FRESHMAN REPUBLICAN LAWMAKERS AS WELL THE IMMEDIATE CASUALTY WOULD BE NAFTA THE LARGER CASUALTY WOULD BE THE WORLD ECONOMIC GROWTH ON WHICH MR CLINTON'S OWN POLITICAL FATE WILL TURN IN A LUNCH DISCUSSION WITH A GROUP OF JOURNALISTS JUST BEFORE LEAVING FOR THIS WEEK'S SUMMIT MEETING OF INDUSTRIALIZED NATIONS MR CLINTON POINTEDLY STEERED AWAY FROM OPENINGS TO BASH JAPAN FOR ITS TRADE BARRIERS OR TO RAIL AGAINST FRENCH INTRANSIGENCE OVER SEALING A WORLDWIDE TREATY TO LOWER TRADE BARRIERS INDEED HE SEEMED ALMOST SHEEPISH ABOUT HIS HARDNOSED EFFORTS SO FAR TO FORCE JAPAN TO PROMISE TO BUY SPECIFIC AMOUNTS OF US PRODUCTS I THINK NOW THE JAPANESE UNDERSTAND THAT I'M NOT TRYING TO TAKE A SLEDGEHAMMER TO THEM BUT I AM TRYING TO ARGUE THAT IT IS IN BOTH OUR INTERESTS TO CHANGE THIS TRADE RELATIONSHIP HE SAID AND FRANCE'S AGGRAVATING PROTECTIONIST AGRICULTURAL POLICY SEEMS TO PRODUCE MORE SADNESS THAN ANGER IN MR CLINTON I UNDERSTAND IT HE SAID THEY JUST HAD A HUGE ELECTION IN WHICH THERE WAS A MASSIVE SHIFT IN THE DISTRIBUTION OF POLITICAL POWER OCCASIONED BY THE ECONOMIC ANXIETY OF THE FRENCH PEOPLE MOST TELLING INSTEAD OF BLUSTERY THREATS OF RETALIATION OVER THESE PROBLEMS MR CLINTON OFFERED MINILECTURES ON THE DESTRUCTIVE POTENTIAL OF PROTECTIONISM IN MY VIEW ANYWAY HE SAID THE PROBLEM IS THAT IT'S A DEAD END THE COUNTRY WHOSE TRADING POLICIES MR CLINTON MOST LIKES TO TALK ABOUT IS PREUNIFICATION WEST GERMANY IT HAD BOTH THE MOST CONSISTENTLY OPEN TRADING POLICY IN EUROPE AND ALSO THE CONTINENT'S LOWEST UNEMPLOYMENT RATE THAT WASN'T JUST A COINCIDENCE HE ARGUES AND SHOWS THAT ECONOMIC NATIONALISM AND PROTECTIONISM NEED TO BE FOUGHT WE'VE GOT TO BE PATIENT AND DELIBERATE BUT WE'VE GOT TO FIGHT THAT IN THE UNITED STATES WE'VE GOT TO FIGHT IT IN FRANCE WE'VE GOT TO FIGHT IT EVERYWHERE THESE ARE HARDLY RADICAL SENTIMENTS IN FACT THEY REFLECT THE MAINSTREAM THINKING OF THE US FOREIGN POLICY ESTABLISHMENT BUT THAT REVEALS SOMETHING IMPORTANT ABOUT BILL CLINTON ON INTERNATIONAL POLICIES HE IS FAR MORE COMFORTABLE WITH THE MAINSTREAM COUNCILONFOREIGNRELATIONS MINDSET THAN MANY THOUGHT DURING HIS CAMPAIGN HE ISN'T A RADICAL WHICH IS WHY SO MANY OF HIS FOREIGN POLICY PRONOUNCEMENTS SEEM SO SIMILAR TO GEORGE BUSH'S AND THOUGH HE COMES FROM THE SMALL POOR STATE OF ARKANSAS IT IS A STATE THAT HAS MOVED MUCH MORE AGGRESSIVELY INTO INTERNATIONAL EXPORT MARKETS THAN ITS BACKWARD IMAGE SUGGESTS THAT HAS HELPED MAKE BILL CLINTON AN INTERNATIONALIST SO IT'S REASONABLE TO GUESS THAT THE HAWKISH CLINTON TRADE STANCE TOWARD JAPAN REFLECTS MORE A CALCULATION THAT JAPAN IS A SPECIAL CASE THAN AN OVERALL REFLECTION OF SOME DARKER PROTECTIONIST SENTIMENT LURKING INSIDE THE NEW PRESIDENT BUT THE ACID TEST OF THIS SUPPOSITION ISN'T GOING TO COME IN DIPLOMATIC CONVERSATIONS WITH FRANCE OR ARCANE TRADE NEGOTIATIONS WITH JAPAN IT'S GOING TO COME IN THE US CONGRESS WHERE IT APPEARS INCREASINGLY LIKELY THAT PASSIONATE WORK BY MR CLINTON IS NEEDED TO SAVE A NAFTA AGREEMENT THAT TEETERS ON THE BRINK OF EXTINCTION LAST WEEK'S RULING BY A WASHINGTON JUDGE THAT THE ADMINISTRATION HAS TO PREPARE A COMPLICATED ENVIRONMENTAL IMPACT STATEMENT WILL PROVIDE BOTH MORE TIME AND FRESH AMMUNITION FOR OPPONENTS TO FIGHT THE DEAL MR CLINTON HAS TO SWIM UPSTREAM WITHIN HIS OWN PARTY TO SELL NAFTA HIS INCLINATION TO NAME A CZAR TO PUSH NAFTA IS ENCOURAGING IF IN HIS SOUL HE IS A TRUE FREE TRADER IT'S TIME TO BARE HIS SOUL AND TO DO SO WITH A LITTLE PASSION 9307070031 930707 WHO'S NEWS DIED OLIVE ANN BEECH 89 COFOUNDER OF BEECH AIRCRAFT CO NOW A UNIT OF RAYTHEON CO IN WICHITA KAN 9307070030 930707 ATARI CORP VIDEO AGREEMENT SUNNYVALE CALIF ATARI CORP SAID IT REACHED AN AGREEMENT UNDER WHICH A LIBRARY OF VIDEO CLIPS OWNED BY TIME WARNER INC WILL BE AVAILABLE TO THOSE DEVELOPING PRODUCTS FOR A NEW INTERACTIVE SYSTEM THAT ATARI PLANS TO INTRODUCE THIS FALL TERMS WEREN'T DISCLOSED A SPOKESWOMAN FOR ATARI SAID CLIP TITLES WEREN'T DETERMINED ATARI'S MULTIMEDIA SYSTEM THE JAGUAR WILL RETAIL FOR ABOUT 200 9307070029 930707 NATIONAL POWER AGREEMENT NATIONAL POWER PLC OF BRITAIN SAID IT REACHED AGREEMENT WITH A UNIT OF HINDUJA GROUP OF INDIA OVER DEVELOPMENT OF A COALFIRED POWER STATION IN INDIA EXPECTED TO COST ABOUT 13 BILLION 196 BILLION NATIONAL POWER SAID THAT UNDER THE AGREEMENT WITH ASHOK LEYLAND IT WOULD OPERATE THE STATION AND HOLD AN EQUITY STAKE THE COMPANY SAID COMMITMENT IS SUBJECT TO COMPLETION OF FEASIBILITY STUDIES 9307070028 930707 NORTHWEST AIR AVERTS BANKRUPTCY FILING AS PILOTS ACCEPT CONCESSIONS PROPOSAL BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL NORTHWEST AIRLINES AVERTED AT LEAST FOR NOW A THREATENED FEDERAL BANKRUPTCYLAW FILING AFTER ITS PILOTS UNION AGREED TO A LASTMINUTE PACT TO SAVE THE CARRIER 365 MILLION OVER THREE YEARS THE AGREEMENT A CRUCIAL ELEMENT IN THE AIRLINE'S PLAN TO SLASH LABOR COSTS BY 886 MILLION OVER THREE YEARS PUTS PRESSURE ON THE INTERNATIONAL ASSOCIATION OF MACHINISTS TO REACH A PACT QUICKLY TO REPLACE ONE THAT ITS MEMBERS REJECTED LAST MONTH A SIGN OF THE PRESSURE TO KEEP THE NATION'S FOURTHLARGEST CARRIER OUT OF BANKRUPTCYCOURT PROTECTION CAME YESTERDAY AS SECRETARY OF TRANSPORTATION FEDERICO PENA DISCUSSED THE SITUATION BY PHONE WITH NORTHWEST AND OFFICIALS OF ITS THREE MAJOR UNIONS THE GROUPS ARE SCHEDULED TO MEET WITH MR PENA IN WASHINGTON TODAY NORTHWEST THE ST PAUL MINN UNIT OF CLOSELY HELD WINGS HOLDINGS INC PREVIOUSLY HAS THREATENED A BANKRUPTCYLAW FILING BUT THIS TIME IT BACKED UP ITS THREAT BY HALTING PAYMENTS TO SUPPLIERS AND LENDERS AND BY DISPATCHING LAWYERS TO WILMINGTON DEL WHERE THE COMPANY WAS POISED YESTERDAY TO FILE IN US BANKRUPTCY COURT AIRLINEINDUSTRY EXECUTIVES AND ANALYSTS FEAR A NORTHWEST BANKRUPTCYLAW FILING WOULD DESTABILIZE THE AIRLINE INDUSTRY BECAUSE NORTHWEST WOULD ALMOST CERTAINLY CUT FARES BEYOND THE SALE IT INITIATED LAST MONTH THAT WOULD BE BAD TIMING FOR THE CLINTON ADMINISTRATION AND THE NATIONAL AIRLINE COMMISSION BOTH OF WHICH HAVE VOWED TO ADDRESS THE INDUSTRY'S PROBLEMS IN ITS AGREEMENT WITH THE AIR LINE PILOTS ASSOCIATION NORTHWEST STUCK TO ITS DEMAND FOR 365 MILLION IN COST REDUCTIONS BUT AGREED THAT 61 MILLION COULD COME IN WORKRULE CHANGES RATHER THAN DIRECT CUTS IN WAGES AND BENEFITS IN ADDITION THE AGREEMENT CONTAINS A PROVISION UNDER WHICH EMPLOYEES CAN CHOOSE A LARGER CHUNK OF COMMON STOCK OVER A PROMISE TO BE PAID BACK FOR THEIR CONCESSIONS WITHIN 10 YEARS THAT COULD GIVE ALL OF THE AIRLINE'S EMPLOYEES AS MUCH AS 375 OF THE COMMON SHARES UP FROM 30 IN THE PREVIOUS AGREEMENT NEGOTIATED BY THE MACHINISTS AND TEAMSTERS UNIONS AT THE SAME TIME THE AIRLINE'S PREFERRED STOCKHOLDERS AGREED TO A REDUCTION IN THE INTEREST RATE THEY RECEIVE WHICH THE COMPANY SAID WILL RESULT IN ANNUAL SAVINGS OF 36 MILLION IN RETURN THE PREFERRED HOLDERS WOULD GET ADDITIONAL COMMON STOCK THE PILOTS' AGREEMENT WAS APPROVED BY A 24 TO 1 VOTE OF THE UNION'S EXECUTIVE COUNCIL AND NO FURTHER VOTE BY THE AIRLINE'S 5400 PILOTS IS NECESSARY ALTHOUGH THE AIRLINE HAILED THE PILOTS' AGREEMENT AS A MAJOR STEP IN ITS FINANCIAL RESTRUCTURING THE BANKRUPTCY THREAT HASN'T ENDED THAT IS BECAUSE EACH UNION'S CONCESSIONS ARE CONTINGENT ON THE OTHER UNIONS' SIGNING OFF ON THEIR CONCESSIONS PACKAGES NORTHWEST HAS BEEN BURDENED BY 31 BILLION IN DEBT TAKEN ON IN 1989 WITH THE 365 BILLION LEVERAGED BUYOUT LED BY INVESTORS ALFRED CHECCHI AND GARY WILSON WHO ARE NOW COCHAIRMEN OF THE AIRLINE AS PART OF ITS EFFORTS TO CUT COSTS THE AIRLINE SAID IT REACHED AGREEMENTS TO DEFER 27 BILLION IN AIRCRAFT DELIVERIES TWO BOEING 747400S FROM BOEING CO AND 16 A330S FROM AIRBUS INDUSTRIE THE EUROPEAN AIRCRAFT CONSORTIUM THE CARRIER ALSO SAID THAT UNITED TECHNOLOGIES CORP'S PRATT & WHITNEY UNIT AND AIRBUS HAVE AGREED TO DEFER PAYMENTS ON A 250 MILLION LOAN DUE IN JANUARY 1994 THOSE TWO HAD BEEN HOLDOUTS IN A SIXMEMBER GROUP OF LENDERS IN ADDITION THE AIRLINE SAID THOSE TWO SUPPLIERS AND GENERAL ELECTRIC CO AGREED TO RESCHEDULE OR EXTEND PAYMENTS ON MORE THAN 800 MILLION IN DEBT NORTHWEST ALREADY HAS RECEIVED APPROVAL BY A GROUP OF BANKS TO DEFER 900 MILLION OF A 129 BILLION LOAN TO 1997 THE LOAN RESTRUCTURINGS HOWEVER ARE CONTINGENT ON THE LABOR CONCESSIONS NORTHWEST OFFICIALS SAID THEY HOPE MACHINISTS' LEADERS WILL TAKE THEIR PREVIOUS PACT AND IMPROVEMENTS FROM THE PILOTS' DEAL TO THEIR 24000 MEMBERS FOR RATIFICATION BUT THE UNION WHICH REPRESENTS GROUND PERSONNEL MIGHT ASK FOR SOME OTHER CHANGES THE TEAMSTERS WHO REPRESENT NEARLY 9000 FLIGHT ATTENDANTS SAID THE PILOTS' AGREEMENT APPEARS TO BE IN LINE WITH BASIC FEATURES OF THE ACCORDS PREVIOUSLY NEGOTIATED BY THE TEAMSTERS AND MACHINISTS IF SO TEAMSTERS OFFICIALS HOPE TO PUSH FOR QUICK RATIFICATION BY MEMBERS DANIEL PEARL CONTRIBUTED TO THIS ARTICLE 9307070027 930707 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 SOUTHWESTERN ELECTRIC POWER CO 45 MILLION OF 725 FIRST MORTGAGE BONDS SERIES Z DUE JULY 1 2023 SOLD TO UNDERWRITERS AFTER THE ISSUANCE OF THE BONDS THE UNIT HAS 90 MILLION REMAINING ON ITS SHELF REGISTRATION STATEMENT THE COMPANY SAID BONDS ARE BEING OFFERED TO THE PUBLIC AT 98874 TO YIELD 734 TO MATURITY WITH PROCEEDS TO THE UNIT OF 97999 AND A COST OF 742 THE BONDS ARE NOT REDEEMABLE PRIOR TO JULY 1 2003 THE BONDS ARE EXPECTED TO BE RATED AA2 BY MOODY'S INVESTORS SERVICE INC DOUBLEAMINUS BY STANDARD & POOR'S CORP AND DOUBLEAPLUS BY DUFF & PHELPS GOLDMAN SACHS & CO IS LEAD MANAGER OF THE OFFERING WITH MORGAN STANLEY & CO AS COMANAGER NET PROCEEDS FROM THE BOND SALE WILL BE USED TO REFUND CERTAIN OF THE UNIT'S HIGHERCOST FIRST MORTGAGE BONDS SOUTHWESTERN ELECTRIC IS A UNIT OF CENTRAL & SOUTH WEST CORP LONG ISLAND LIGHTING CO 145 MILLION OF DEBENTURES DUE JULY 15 2001 PRICED AS 625S AT 98949 TO YIELD 642 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 087 PERCENTAGE POINT ABOVE THE 7875S TREASURY THAT EXPIRES IN AUGUST 2001 RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS MCDONALD'S CORP 200 MILLION OF DEBENTURES DUE JULY 15 2033 PRICED AS 7375S AT 99578 TO YIELD 7408 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR 10 YEARS THEY ARE PRICED AT A SPREAD OF 075 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED DOUBLEA2 BY MOODY'S AND DOUBLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC SOUTHWESTERN BELL TELEPHONE CO 150 MILLION OF DEBENTURES DUE JULY 15 2025 PRICED AS 725S AT 98471 TO YIELD 7375 ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR 10 YEARS WAS PRICED AT A SPREAD OF 072 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO SOUTHWESTERN BELL TELEPHONE IS A UNIT OF SOUTHWESTERN BELL CORP WISCONSIN PUBLIC SERVICE CORP 100 MILLION TWOPART ISSUE OF FIRST MORTGAGE BONDS PRICED THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST PART 50 MILLION OF FIRST MORTGAGE BONDS DUE JULY 1 1998 WAS PRICED AS 525S AT 99709 TO YIELD 5317 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 03 PERCENTAGE POINT ABOVE THE TREASURY FIVEYEAR NOTE THE SECOND PART 50 MILLION OF FIRST MORTGAGE BONDS DUE JULY 1 2023 WAS PRICED AS 7125S AT 98284 TO YIELD 7266 NONCALLABLE FOR 10 YEARS IT WAS PRICED AT A SPREAD OF 06 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND THE ISSUE IS RATED DOUBLEA2 BY MOODY'S AND DOUBLEAPLUS BY S&P FEDERAL HOME LOAN MORTGAGE CORP 201 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MORGAN STANLEY & CO THE OFFERING SERIES GS 151 IS BACKED BY THE AGENCY'S 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 798 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 295 YEARS BACARDIMARTINI FINANCE BV BERMUDA PARENT 200 MILLION OF 575 EUROBONDS DUE JULY 23 1998 AT ISSUE PRICE 10106 VIA JP MORGAN REOFFERED AT 9956 TO YIELD 585 ANNUAL A MARGIN OF 80 BASIS POINTS OVER COMPARABLE US TREASURY NOTE GUARANTOR BACARDI LTD FEES 1875 POINTS BANCO PACTUAL BRAZIL 60 MILLION OF 925 EUROBONDS DUE JAN 20 1996 AT ISSUE AND REOFFER PRICE 9963 VIA ING BANK NV BONDS YIELD 530 BASIS POINTS ABOVE 25YEAR INTERPOLATED US TREASURY YIELD CURVE FEES ONE POINT INTEREST PAYABLE SEMIANNUALLY DENMARK SOVEREIGN 250 MILLION OF 475 EUROBONDS DUE AUG 5 1997 AT ISSUE PRICE 101015 VIA NIKKO EUROPE LTD REOFFERED AT 9959 TO YIELD 487 ANNUAL A MARGIN OF 20 BASIS POINTS OVER INTERPOLATED THREEYEAR TO FIVEYEAR US TREASURY CURVE FEES 1625 POINTS KANSAI ELECTRIC POWER CO JAPAN 25 BILLION FRENCH FRANCS OF 7 EUROBONDS DUE AUG 4 2003 AT ISSUE PRICE 101465 VIA BANQUE PARIBAS REOFFERED AT 9979 TO YIELD 703 A MARGIN OF 28 BASIS POINTS ABOVE COMPARABLE FRENCH GOVERNMENT BOND FEES TWO POINTS NGK INSULATORS LTD JAPAN 300 MILLION OF 1375 EUROBONDS WITH EQUITYWARRANTS ATTACHED DUE JULY 22 1997 AT ISSUE PRICE PAR VIA NIKKO EUROPE LTD WARRANTS TO PURCHASE NGK SHARES AT TERMS TO BE FIXED ON JULY 13 INDICATED PREMIUM 25 WARRANTS EXERCISABLE FROM AUG 5 1993 TO JULY 15 1997 FEES 225 POINTS LESS SPECIAL FEE DEDUCTED FOR LEAD MANAGERS OF 02 POINT SSANGYONG OIL REFINING CO REPUBLIC OF KOREA 150 MILLION OF CONVERTIBLE EUROBONDS DUE DEC 31 2008 AT ISSUE PRICE PAR VIA PARIBAS CAPITAL MARKETS LTD INDICATED COUPON BETWEEN 375 AND 425 BONDS CONVERTIBLE INTO NONVOTING SHARES AT PRICE AROUND OR SLIGHTLY ABOVE VOTING SHARES CALLABLE BETWEEN YEARS SIX AND EIGHT SUBJECT TO 150 PROTECTION RULE PUT OPTION EXERCISABLE IN YEAR EIGHT TO YIELD 75 TO 150 BASIS POINTS OVER COMPARABLE US TREASURYS FEES 25 POINTS SUMITOMO CEMENT CO JAPAN 200 MILLION OF 1375 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE JULY 22 1997 AT ISSUE PRICE PAR VIA NOMURA INTERNATIONAL PLC TERMS FIXED JULY 13 WARRANTS EXERCISABLE BETWEEN AUG 5 1993 AND JULY 15 1997 FEES 225 POINTS SWEDEN SOVEREIGN 250 BILLION ITALIAN LIRE OF 975 EUROBONDS DUE AUG 6 2003 AT ISSUE PRICE 10105 VIA DEUTSCHE BANK AG LONDON REOFFERED AT 99375 TO YIELD 985 ANNUAL FEES TWO POINTS 9307070026 930707 FINANCING BUSINESS SFX BROADCASTING INC SFX BROADCASTING INC NEW YORK THE OWNER OF NINE RADIO STATIONS PROPOSED TO RAISE 1167 MILLION BY SELLING STOCK AND NOTES AMID INVESTOR INTEREST IN MEDIA PROPERTIES THE COMPANY FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF 32 MILLION SHARES OF CLASS A COMMON STOCK WHICH IS CONTINGENT ON THE COMPLETION OF AN OFFERING OF 75 MILLION IN NOTES THE FILING SAID SFX WOULD NET ABOUT ABOUT 417 MILLION FROM THE STOCK SALE AT AN ASSUMED PRICE OF 14 A SHARE UNDERWRITERS FOR THE OFFERING ARE KIDDER PEABODY & CO AND FURMAN SELZ INC 9307070025 930707 LIFECELL CORP'S CLINICAL TRIALS THE WOODLANDS TEXAS LIFECELL CORP SAID PRELIMINARY RESULTS FROM CLINICAL TRIALS FOR ITS SKIN REPLACEMENT TISSUE PRODUCT SHOW A HIGH PERCENTAGE OF SUCCESS THE COMPANY'S PROPRIETARY PRODUCT IS ALLODERM A PROCESSED HUMAN DONOR SKIN DESIGNED TO GRAFT TO PATIENTS WITH DEEP BURNS AND BEDSORE INJURIES OR TO PATIENTS WHO NEED PLASTIC SURGERY FOLLOWING REMOVAL OF SKIN GROWTHS LIFECELL SAID THE STATISTICAL RESULTS FROM THE COMPANY'S FINAL PHASE OF CLINICAL TRIALS WOULD BE DISCLOSED WITHIN A MONTH ALLODERM WILL BE INTRODUCED COMMERCIALLY THIS YEAR THE BIOLOGICAL TISSUE GRAFT COMPANY SAID 9307070024 930707 ECONOMY US AND JAPAN REMAIN AT ODDS OVER TRADE GAP CLINTON DEMAND FOR MEANS TO MEASURE PROGRESS IS ISSUE AS TALKS RESUME BY DAVID WESSEL AND JACOB M SCHLESINGER STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO THE US AND JAPAN RECONVENED THEIR TRADE TALKS BUT REMAINED AT ODDS OVER PRESIDENT CLINTON'S DEMAND THAT JAPAN AGREE TO SET BENCHMARKS FOR MEASURING PROGRESS ON SHRINKING ITS TRADE SURPLUS DIFFERENCES REMAIN MR CLINTON SAID AFTER AN HOURLONG MEETING TUESDAY WITH JAPANESE PRIME MINISTER KIICHI MIYAZAWA WHOSE ENTREATIES AND CONCESSIONS OVER THE WEEKEND HAD LED TO THE RESUMPTION OF TALKS BUT ENOUGH PROGRESS HAS BEEN MADE THAT WE BELIEVE THEY THE NEGOTIATORS SHOULD CONTINUE TO WORK DURING THIS CRITICAL PERIOD WE DON'T WANT TO RAISE FALSE HOPES BUT WE HAVE HOPES ALTHOUGH THE JAPANESE NOW SEEM PREPARED TO ACCEPT SOME SORT OF ILLUSTRATIVE CRITERIA FOR MEASURING PROGRESS IN SPECIFIC TRADE SECTORS THEY HAVE YET TO AGREE ON WHAT ROLE SUCH MEASURES SHOULD PLAY IN THE NEW FRAMEWORK FOR USJAPAN ECONOMIC RELATIONS THE US IS PRESSING FOR AN AGREEMENT TO SET SOME SORT OF MEASURABLE GOALS FOR OPENING SPECIFIC SECTORS AND REDUCING JAPAN'S OVERALL TRADE IMBALANCE WITH THE REST OF THE WORLD TALKS ON SPECIFIC GOALS AND TIMETABLES WOULD FOLLOW IN A SPEECH WEDNESDAY MORNING AT TOKYO'S WASEDA UNIVERSITY MR CLINTON TRIED TO ENLIST JAPANESE CONSUMERS AS ALLIES IN HIS DRIVE TO OPEN THE JAPANESE MARKET AND TO PERSUADE THE JAPANESE GOVERNMENT TO FAVOR DOMESTIC CONSUMPTION OVER EXPORTS YOU HAVE A COMMON CAUSE WITH THE PEOPLE OF AMERICA A COMMON CAUSE AGAINST OUTDATED PRACTICES THAT DIMINISH THE QUALITY OF YOUR LIVES HE SAID LARGELY BECAUSE OF JAPANESE TRADE BARRIERS HE SAID JAPANESE FAMILIES SPEND TWICE AS MUCH OF THEIR INCOME ON FOOD AS AMERICANS OUR ECONOMIC RELATIONSHIP IS NOT IN BALANCE HE SAID ADDING OUR GOVERNMENTS HAVE MADE PROGRESS IN THE LAST FEW DAYS OF CRAFTING THE NEW PRINCIPLES OF THIS NEW FRAMEWORK WE WILL PERSIST INVOKING THE WORDS OF ROBERT KENNEDY WHO MADE A CELEBRATED SPEECH FROM THE SAME STAGE 20 YEARS AGO MR CLINTON URGED THE JAPANESE TO WELCOME RATHER THAN FEAR CHANGE AFTER THE SPEECH MR CLINTON TOOK THAT MESSAGE TO A STREET NEAR THE AUDITORIUM GREETING SHOPKEEPERS AND THEIR CUSTOMERS IN A CAMPAIGNSTYLE APPEARANCE THE USJAPAN TALKS ARE EXPECTED TO CONTINUE THIS WEEK AS MR CLINTON AND MR MIYAZAWA MEET THEIR COUNTERPARTS FROM THE OTHER GROUP OF SEVEN INDUSTRIALIZED NATIONS G7 SUMMITS ARE USUALLY SCRIPTED WELL IN ADVANCE BUT THIS ONE IS MARKED BY SUSPENSE NOT ONLY OVER THE OUTCOME OF THE USJAPAN TALKS BUT ALSO OVER THE CONTINUING ATTEMPTS TO BREAK THE DEADLOCK IN WORLD TRADE TALKS TRADE MINISTERS FROM THE US JAPAN CANADA AND THE EUROPEAN COMMUNITY ARE STILL SEEKING AN ELUSIVE AGREEMENT TO LOWER TARIFFS ON INDUSTRIAL PRODUCTS AFTER SIX HOURS OF TALKS THAT WENT LATE INTO TUESDAY NIGHT THE MINISTERS AGREED TO RECONVENE WEDNESDAY MORNING AND EXPRESSED CONFIDENCE THAT THEY COULD REACH SOME AGREEMENT THIS WEEK IF I DIDN'T FEEL THAT PROGRESS HAD BEEN MADE I WOULD BE RELUCTANT TO COME BACK TODAY SAID SIR LEON BRITTAN THE EUROPEAN NEGOTIATOR THE US APPEARED TO BE SOFTENING ITS POSITION INDICATING ITS WILLINGNESS TO REDUCE ITS TARIFFS ON TEXTILES AND APPAREL AND TO RELAX ITS DEMANDS THAT EUROPE LOWER TARIFFS ON ELECTRONICS AND NONFERROUS METALS THE GENERAL SHAPE OF THE REPORT IS EMERGING A JAPANESE GOVERNMENT SPOKESMAN SAID JUST BEFORE THE TALKS RESUMED THEY ARE IN THE FINAL STAGE FAILURE TO ARRIVE AT A BROAD MARKETACCESS AGREEMENT WOULD DIMINISH THE PROSPECTS FOR COMPLETING THE URUGUAY ROUND OF WORLD TRADE TALKS BY THE DEC 15 GOAL THE TRADE TALKS BETWEEN THE US AND JAPAN BROKE OFF LAST WEEK AND US OFFICIALS SUGGESTED THAT THE JAPANESE COULDN'T BE EXPECTED TO MAKE FURTHER CONCESSIONS BEFORE THE JULY 18 PARLIAMENTARY ELECTIONS BUT MR MIYAZAWA HUMILIATED BY THE COLLAPSE OF HIS GOVERNMENT ON THE EVE OF THE SUMMIT RESUSCITATED THE TALKS IN A PERSONAL LETTER TO MR CLINTON OVER THE WEEKEND IT WAS APPARENTLY A BID TO DEMONSTRATE THAT HIS LIBERAL DEMOCRATIC PARTY CAN MANAGE THE IMPORTANT USJAPAN RELATIONSHIP FACING ITS MOST SERIOUS POLITICAL THREAT EVER THE LDP MUCH AS GEORGE BUSH DID IN HIS CAMPAIGN AGAINST MR CLINTON LAST YEAR IS TRYING TO RAISE DOUBTS ABOUT ITS RIVALS' ABILITY TO HANDLE FOREIGN AFFAIRS ONE LDP ELECTION SLOGAN OFFERS VOTERS A CHOICE BETWEEN STABILITY AND CHAOS BUT IT ISN'T CLEAR WHETHER MR MIYAZAWA HAS THE POLITICAL STRENGTH TO RALLY THE REST OF THE GOVERNMENT TO STRIKE A DEAL WITH THE US OR WHETHER HE IS SIMPLY TRYING TO REPAIR HIS DAMAGED IMAGE MR CLINTON RESPONDED TO MR MIYAZAWA'S OFFER WITH A LETTER OF HIS OWN THAT ARRIVED SEVERAL HOURS BEFORE HE DID BUT WHITE HOUSE ADVISER DAVID GERGEN WOULDN'T SAY WHETHER THE US MADE CONCESSIONS IN THAT LETTER MR CLINTON WENT OUT OF HIS WAY TO PRAISE MR MIYAZAWA ON TUESDAY TREATING HIM MUCH MORE KINDLY THAN HE HAD AT A NEWS CONFERENCE IN WASHINGTON IN APRIL MR CLINTON SAID HE WAS VERY IMPRESSED WITH THE TERRIFIC AMOUNT OF ENERGY AND ENGAGEMENT THAT PRIME MINISTER MIYAZAWA HAS PERSONALLY BROUGHT TO THESE NEGOTIATIONS BUT HE ALSO WELCOMED THE THIRST FOR POLITICAL REFORM AND THE PERIOD OF CHANGE AND FERMENT IN JAPAN AND INVITED MR MIYAZAWA'S POLITICAL FOES TO A RECEPTION AT THE US EMBASSY MR MIYAZAWA SOUNDED MORE OPTIMISTIC THAN MR CLINTON ABOUT THE CHANCES OF A BREAKTHROUGH BEFORE MR CLINTON LEAVES FOR SOUTH KOREA ON SATURDAY BUT AT A JOINT NEWS CONFERENCE THE PRIME MINISTER ILLUSTRATED JUST HOW FAR APART THE TWO SIDES ARE IT IS TRUE THAT THE JAPANESE CURRENTACCOUNT SURPLUS IS TOO LARGE AND WE WOULD LIKE TO SOMEHOW REDUCE THIS MR MIYAZAWA SAID BUT WHEN IT COMES TO SUGGESTIONS THAT THIS SURPLUS SHOULD BE DOWN TO A CERTAIN PERCENTAGE OF GDP WE CANNOT DO THAT IN A MARKET ECONOMY HE ARGUED THE GOVERNMENT CAN'T CONTROL IMPORTS EXPORTS OR THE OVERALL SIZE OF THE ECONOMY WE HAVE A SLIGHT DIFFERENCE OF VIEW ON THAT MR CLINTON RESPONDED DRILY US OFFICIALS HAVE TARGETED JAPANESE GOVERNMENT POLICIES THAT RESTRICT IMPORTS AS WELL AS ITS MACROECONOMIC POLICIES THE OFFICIALS HAVE SAID THAT JAPAN'S CURRENTACCOUNT SURPLUS THE BROADEST MEASURE OF ITS TRADE SURPLUS SHOULD BE REDUCED TO ABOUT 15 OF GROSS DOMESTIC PRODUCT IT IS NOW ABOUT 33 OF GDP ALL THE OTHER MAJOR ECONOMIES ARE RUNNING TRADE DEFICITS EUROPE'S TRADE NEGOTIATOR SIR LEON BRITTAN ENTERED THE FRAY TUESDAY ON JAPAN'S SIDE WE DON'T BELIEVE THE OPEN TRADING SYSTEM IS STRENGTHENED BY SECTORAL TARGETS BETWEEN ONE COUNTRY AND ANOTHER HE TOLD REPORTERS WE DO THINK THAT THE JAPAN SURPLUS IS A PROBLEM HE SAID BUT HE SHIED AWAY FROM SPECIFIC TARGETS OR TIMETABLES FOR REDUCING IT JEFFREY H BIRNBAUM CONTRIBUTED TO THIS ARTICLE 9307070022 930707 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN INDONESIAN PRESIDENT SUHARTO DEFENDED THE BUSINESS ACTIVITIES OF HIS CHILDREN SAYING THEY MANAGE THEIR VENTURES PROFESSIONALLY AND DON'T RECEIVE PRIVILEGES MR SUHARTO INDONESIA'S LEADER SINCE 1966 TOLD A JAPANESE NEWSPAPER HIS SIX CHILDREN HAVE THE RIGHT TO PARTICIPATE IN DEVELOPING THEIR COUNTRY IN RECENT YEARS FAMILY MEMBERS HAVE EXPANDED THEIR BUSINESSES BROADENING A PERCEPTION THAT THE GOVERNMENT HAS AWARDED THEM CONTRACTS AND REMOVED RED TAPE THIS YEAR THE FAMILY BUSINESS ROLE WAS ENHANCED WHEN A SATELLITE OPERATION WAS PRIVATIZED WITHOUT BIDS AND MAJORITY CONTROL ASSIGNED TO A COMPANY HEADED BY A SUHARTO SON BAMBANG TRIHATMODJO ANOTHER BUSINESS ASSIGNED TO A SON A CLOVE MONOPOLY BEGUN IN 1991 HAS ATTRACTED ATTENTION BECAUSE OF MOVES TO GET COMMERCIAL BANK LOANS TO REPLACE STATESUBSIDIZED CREDITS THAILAND FORGAVE A TOTAL OF 11 BILLION BAHT 436 MILLION IN DEBT OF 200000 FARMERS THE COUNTRY IS ASIA'S LARGEST NET EXPORTER OF FOOD AND MORE THAN 60 OF THAILAND'S POPULATION LIVES IN RURAL AREAS FALLING WORLD CROP PRICES HAVE CAUSED AN 18 DROP IN THE VALUE OF THAILAND'S FARM EXPORTS THIS YEAR HURTING FARMERS ALREADY STRUGGLING AFTER A TWOYEAR DROUGHT THAT REDUCED FARM YIELDS AND INCOME THE DEBTRELIEF PROGRAM ALSO EXTENDS LOANPAYMENT PERIODS AND OFFERS LOANS FOR SHIFTING FROM RICE FARMING EARLIER THIS YEAR THAILAND WHICH CONTROLS 34 OF THE WORLD'S RICE MARKET BOUGHT SURPLUS RICE AND LAUNCHED SEVERAL PRICE SUPPORT PROGRAMS CHANCELLOR HELMUT KOHL SAID GERMANY'S RECESSION MAY HAVE HIT BOTTOM AMID SIGNS OF RECOVERING INDUSTRIAL ORDERS AND PRODUCTION BUT UNEMPLOYMENT ROSE AGAIN TO 7 IN JUNE FROM 69 IN MAY IN THE WESTERN REGION WHILE THE EAST'S RATE WAS UNCHANGED AT 144 THE JOBLESS ROLLS NOW ABOUT 33 MILLION ARE EXPECTED TO SWELL THIS SUMMER MR KOHL SAID MOST FORECASTS SEE AN ECONOMIC RECOVERY STARTING BY YEAR END RETAIL SALES AND INDUSTRIAL OUTPUT STABILIZED LAST SPRING HE SAID AND BUSINESS CONFIDENCE FOR THE SECOND HALF HAS IMPROVED WHILE GERMANY CUT INTEREST RATES AGAIN LAST WEEK BUT MOST PRIVATE ECONOMISTS DON'T EXPECT A RECOVERY TO START UNTIL NEXT YEAR AND THEN WEAKLY IN THIS YEAR'S FIRST FIVE MONTHS RUSSIA SEIZED FORGED BANKNOTES AND PRIVATIZATION VOUCHERS VALUED AT 539000 EXCEEDING THE TOTAL FOR THE PREVIOUS FIVE YEARS PHOTOCOPIERS HAD BEEN USED TO MAKE 90 OF THE BOGUS PAPER RECOVERED THE INTERIOR MINISTRY SAID WE NEED MEASURES TO REGULATE THE USE OF PHOTOCOPYING MACHINES AND DETERMINE RULES FOR IMPORTING THESE MACHINES THE FORGED BILLS INCLUDED MOSTLY US DOLLARS AS WELL AS RUSSIAN RUBLES AND GERMAN MARKS A BRITISH PANEL RECOMMENDED MAJOR REVISIONS IN THE COUNTRY'S JUSTICE SYSTEM INCLUDING FORMATION OF AN INDEPENDENT TRIBUNAL TO CONSIDER CLAIMS OF WRONGFUL CONVICTIONS MOST OF THE 352 NONBINDING PROPOSALS BY THE ROYAL COMMISSION ON CRIMINAL JUSTICE WERE WELCOMED BUT ONE TO ABOLISH THE CENTURIESOLD RIGHT TO A JURY TRIAL TO RELIEVE CONGESTED COURT DOCKETS WAS WIDELY CONDEMNED THE COMMISSION SET UP IN 1991 AFTER A SERIES OF MISCARRIAGES OF JUSTICE ALSO URGED MAKING VIDEO RECORDINGS OF SUSPECTS IN POLICE CUSTODY AND USING SALIVA TO CREATE A DNA DATA BANK FOR A GENETIC IDENTIFICATION SYSTEM THE PROPOSALS COVER ENGLAND AND WALES SCOTLAND'S LEGAL SYSTEM IS SEPARATE CHINA'S NEW CENTRAL BANK GOVERNOR VICE PREMIER ZHU RONGJI INSTRUCTED THE COUNTRY'S BANK CHIEFS TO OBSERVE THE NEW TIGHTMONEY POLICY LAX DISCIPLINE AND INEFFICIENT MANAGEMENT IN FINANCE AND BANKING ARE THE ROOT CAUSE OF CHINA'S CASH SHORTAGE MR ZHU SAID NOTING BEIJING WASN'T REVERSING ITS ECONOMIC REFORM STANCE IN THE PAST YEAR GOVERNMENTRUN BANKS HAVE LENT EXTRAVAGANTLY AND CHINESE HAVE WITHDRAWN BANK DEPOSITS TO MAKE HIGHERYIELDING INVESTMENTS BANKS ALSO HAVE INVESTED IN RISKY REAL ESTATE VENTURES AND STOCKS THE EASYCREDIT POLICY HELPED FUEL INFLATION RUNNING AT 17 ANNUALLY IN CITIES AND LEFT MANY BANKS TOO SHORT OF CASH TO MEET OBLIGATIONS SUCH AS BUYING CROPS PROMPTING PROTESTS BY FARMERS THE GOVERNMENT TIGHTENED CONTROLS ON LOANS AND SLASHED SECONDHALF GOVERNMENT SPENDING 20 ON NEWS OF CHINA'S RESOLVE TO FIGHT INFLATION THE YUAN CURRENCY STRENGTHENED SHARPLY IN SHANGHAI FOREIGNEXCHANGE TRADING THE DOLLAR FELL TO 844 YUAN FROM 9557 FINNISH PUBLIC SUPPORT FOR JOINING THE EUROPEAN COMMUNITY ROSE TO 48 FROM 40 IN FEBRUARY A GALLUP POLL FOUND FINLAND APPLIED IN MARCH 1992 AND MAY HOLD A REFERENDUM IN 1995 FRENCH POLICE ARRESTED TWO PEOPLE IN THE WEEKEND ROBBERY OF THE US OIL AND MOVIE MAGNATE MARVIN DAVIS AND HIS WIFE BARBARA OF 10 MILLION IN JEWELS WHICH WERE INSURED AND 50000 IN CASH FOUR GUNMEN HELD UP THE DAVISES IN A LIMOUSINE ON THE RIVERIA BETWEEN NICE AND CAP D'ANTIBES 9307070021 930706 HOUCHENS DELAYS INITIAL OFFERING BOWLING GREEN KY HOUCHENS INDUSTRIES INC SAID IT WILL DELAY ITS PREVIOUSLY ANNOUNCED INITIAL PUBLIC OFFERING UNTIL IT CAN PROVIDE INVESTORS WITH AUDITED RESULTS FOR ITS FISCAL YEAR ENDED OCT 2 1993 HOUCHENS SAID IT EXPECTS TO COMPLETE THE AUDIT BEFORE THE END OF THE YEAR THE COMPANY OPERATES 80 FOOD STORES UNDER THE HOUCHENS FOOD MARKET AND SAVEALOT NAMES IN KENTUCKY TENNESSEE VIRGINIA WEST VIRGINIA AND INDIANA 9307070020 930707 LETTERS TO THE EDITOR GREENHOUSE GAS IN HIS JUNE 17 LETTER REGARDING THE OZONE DEBATE MICHAEL MCELROY CHAIRMAN OF THE DEPARTMENT OF EARTH AND PLANETARY SCIENCES AT HARVARD UNIVERSITY STATES THAT THERE IS NO DISPUTE THAT HUMAN ACTIVITY IS RESPONSIBLE FOR SIGNIFICANT CHANGES IN THE ABUNDANCE OF SEVERAL KEY GREENHOUSE GASES EITHER MR MCELROY IS MONUMENTALLY UNINFORMED OR MONUMENTALLY DISINGENUOUS THERE ARE PLENTY OF SCIENTISTS AND SCIENTIFICALLY TRAINED PEOPLE WHO CONDEMN THE OZONE HOLE THEORY GREENHOUSE EFFECT THEORY ACID RAIN AND ALL THE REST OF THE SCIENTIFIC CLAPTRAP THAT PASSES FOR ENVIRONMENTALISM ROBERT JASTROW WILLIAM NIERENBERG FREDERICK SEITZ GLOBAL WARMING UPDATE RECENT SCIENTIFIC FINDINGS AND S FRED SINGER ATMOSPHERIC AND ENVIRONMENTAL SCIENTIST AND DIRECTOR THE SCIENCE AND ENVIRONMENTAL POLICY PROJECT ALL CAST DOUBTS ON THE GREENHOUSE EFFECT AND OZONE HOLE THEORIES HAROUN TAZIEFF FRENCH SCIENTIST AND FORMER FRENCH SECRETARY OF STATE FOR PREVENTION OF NATURAL DISASTER IS QUOTED AS SAYING GLOBAL WARMING IS AN OUTRIGHT INVENTION NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION PHYSICIST WALTER KOMHYR HAS IDENTIFIED A POSSIBLE CORRELATION BETWEEN OCEAN TEMPERATURE AND UPPER ATMOSPHERIC OZONE LEVELS BASED ON A STUDY OF DATA COMPILED OVER 25 YEARS HIS THEORY MAKES A LOT MORE SENSE THAN THAT PUT FORWARD BY CHICKEN LITTLE SCIENTISTS LIKE MR MCELROY OR POLITICAL OPPORTUNISTS LIKE ALBERT GORE THERE IS NO RELIABLE SCIENTIFIC EVIDENCE TO SUPPORT THE GREENHOUSE THEORY WHICH IS BASED ON LIMITED AND SEVERELY FLAWED COMPUTER MODELS AND CONJECTURE FED HISTORICAL DATA THE COMPUTER MODELS CANNOT ACCURATELY PREDICT TOMORROW'S WEATHER NEXT WEEK'S WEATHER OR NEXT YEAR'S WEATHER LET ALONE WEATHER FOR THE NEXT 100 YEARS IN FACT THE BEST THAT CAN BE BOUGHT FORWARD BY THE CHICKEN LITTLES IS THAT IN THE PAST 100 YEARS THERE HAS BEEN A ONEDEGREE INCREASE IN NIGHTTIME TEMPERATURES WITH NO INCREASE AT ALL IN DAYTIME TEMPERATURES THAT ONEDEGREE INCREASE CAN BE EASILY ATTRIBUTED TO THE NATURAL AND WELLDOCUMENTED SWINGS IN CLIMATE MR MCELROY'S CLAIM THAT THE OZONE HOLE IT IS NOT A HOLE BY THE WAY FIRST APPEARED IN THE 1970S IS COMPLETELY FALSE THE PHENOMENON WAS FIRST REPORTED IN 1956 BY GORDON DOBSON OF OXFORD UNIVERSITY MR MCELROY'S STATEMENT THAT WILLIAM HAPPER'S CLAIM FOR A DECLINE IN THE ULTRAVIOLET LIGHT HITTING THE EARTH'S SURFACE' IS CONTROVERSIAL AND GIVEN LITTLE WEIGHT BY THE KNOWLEDGEABLE SCIENTIFIC COMMUNITY IS ALSO UTTERLY FALSE THE ONLY CONTROVERSY I HEAR COMES FROM GRANDSTANDING PROFESSIONAL DOOMSAYERS WHO ARE DISCREDITED BY THE FACTS THE FACTS ARE THAT A NETWORK OF UVB METERS HAVE BEEN TAKING MEASUREMENTS SINCE 1974 ALMOST 20 YEARS THE MEASUREMENTS SHOW CONCLUSIVELY THAT LEVELS OF ULTRAVIOLETB THE ULTRAVIOLET ASSOCIATED WITH SKIN CANCER REACHING THE EARTH'S SURFACE HAS CONSISTENTLY DECLINED THIS DECLINE OCCURRED DURING THE TIME THAT ULTRAVIOLET SHOULD HAVE INCREASED IF MR MCELROY'S PET DOOMANDGLOOM THEORIES WERE ACCURATE MR MCELROY'S ALLEGED REFUTATION OF HOLMAN JENKINS'S MAY 25 EDITORIAL PAGE ARTICLE ON THE ADMINISTRATION'S CENSORSHIP OF ENVIRONMENTAL SCIENCE IS PURELY AN EXERCISE IN DAMAGE CONTROL MR JENKINS'S ARTICLE WAS PROMPTED BY THE FIRING OF THE DEPARTMENT OF ENERGY'S TOP SCIENTIST WILLIAM HAPPER AS NOTED IN INSIDE ENERGY MR HAPPER WAS FIRED AFTER A DISPUTE WITH VICE PRESIDENT GORE'S OFFICE OVER THE NEED FOR BETTER MEASUREMENTS OF OZONE DEPLETION THE DEPLETION OF WHICH IS RELEVANT ONLY BECAUSE IT MAY THEORETICALLY RESULT IN AN INCREASE IN CANCERCAUSING UVB RADIATION REACHING THE EARTH'S SURFACE HOWEVER WHILE NASA IS GETTING BILLIONS OF DOLLARS TO MEASURE OZONE FROM SPACE FUNDS ARE NOT BEING ALLOCATED TO ULTIMATELY TEST THE THEORY BY MEASURING THE ENVIRONMENTALLY RELEVANT PARAMETER UVB HERE ON EARTH GORE & CO TREATED MR HAPPER'S REQUEST TO LOOK AT THE SKY IN UV LIGHT LIKE THE INQUISITION TREATED GALILEO FOR LOOKING AT THE SKY THROUGH A TELESCOPE IN ASKING FOR POCKET CHANGE TO MEASURE UVB MR HAPPER WAS FIRED AFTER HE ARGUED WITH AN AIDE TO GORE WHILE ATTEMPTING TO GET THE VICE PRESIDENT'S APPROVAL TO MEASURE ULTRAVIOLET RADIATION AT THE EARTH'S SURFACE INSIDE ENERGY MEANWHILE A FRIGHTENED PUBLIC PURCHASES RADIATIONPROTECTIVE CLOTHING AND LOTIONS TO PROTECT AGAINST A PERCEIVED BUT NOT MEASURED INCREASE IN UVB AND THE GLOBAL ECONOMY IS PREPARING TO SACRIFICE TRILLIONS OF DOLLARS ON THE ALTAR OF WHAT MAY PROVE TO BE A FALSE GOD MR MCELROY'S LETTER CLEVERLY DIVERTS ATTENTION FROM THE CORE TRUTH HERE THAT THE VERY ACT OF SUPPRESSION TACITLY ACKNOWLEDGES THE TRUTH OF THE SCIENCE BEING SUPPRESSED WHILE MR MCELROY MENTIONS MR HAPPER ONLY IN TERMS OF RIDICULE FOR NOT KEEPING THE FAITH THE FACT THAT VICE PRESIDENT GORE HIMSELF IS THE MOST IMPORTANT SKEPTIC IN THIS ADMINISTRATION OF UVB INCREASE IS LOST 9307070019 930707 YOUR MONEY MATTERS MANY NICE GUY' FUNDS FAIL TO MAKE NICE PROFITS BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL IS VIRTUE WORTH MORE THAN JUST ITS OWN REWARD IN THE STOCK MARKET WITH TOBACCO STOCKS STILL REELING FROM AN APRIL SELLOFF A NUMBER OF ADVOCATES OF SOCIALLY RESPONSIBLE INVESTING ARE ARGUING THAT INVESTORS CAN GAIN A COMPETITIVE EDGE BY AVOIDING COMPANIES THAT HAVE A NEGATIVE IMPACT ON SOCIETY EVENTUALLY THE PROPONENTS SAY THESE COMPANIES ARE GOING TO END UP IN TROUBLE AND INVESTORS WHO AVOID THEM NOW WON'T BE CAUGHT IN THE MARKET SLAUGHTER BUT WHILE THAT KIND OF ARGUMENT IS STRIKING A RESPONSIVE CHORD WITH MORE AND MORE INVESTORS THESE DAYS A DISPASSIONATE LOOK AT INVESTMENT RESULTS ISN'T LIKELY TO CHEER THE HEARTS OF THOSE WHO WANT TO DO WELL BY DOING GOOD THERE IS NO LONGTERM EVIDENCE THAT SOCIAL INVESTING BEATS UNRESTRICTED INVESTING OVER AN EXTENDED PERIOD SAYS WILSHIRE ASSOCIATES A SANTA MONICA CALIF PENSION CONSULTING FIRM INDEED ONE INDEPENDENT STUDY COVERING THE PERIOD FROM THE BEGINNING OF 1980 THROUGH OCTOBER 1991 FOUND SINFUL TOBACCO LIQUOR AND GAMBLING STOCKS ALL OUTPERFORMED STANDARD & POOR'S 500STOCK INDEX THE STUDY CONDUCTED BY BARRA INC A BERKELEY CALIF RESEARCH FIRM FOUND TOBACCO STOCKS BEAT THE MARKET BY EIGHT PERCENTAGE POINTS A YEAR DURING THAT PERIOD WHILE LIQUOR STOCKS TROUNCED THE S&P BY NEARLY SIX PERCENTAGE POINTS ANNUALLY GAMBLING STOCKS RECENTLY ON A TEAR EDGED THE MARKET BY TWO PERCENTAGE POINTS ANNUALLY SO FAR THIS YEAR MOST SOCIALLY RESPONSIBLE MUTUAL FUNDS ARE UNDERPERFORMING THEIR COMPETITION THE BEST THING YOU CAN SAY IS THAT NONE OF THE SOCIALLY RESPONSIBLE MUTUAL FUNDS ARE EITHER EXTREME LEADERS OR EXTREME LAGGARDS SAYS A MICHAEL LIPPER PRESIDENT OF LIPPER ANALYTICAL SERVICES INC WHICH TRACKS MUTUAL FUND PERFORMANCE SOMETIMES THEY OUTPERFORM FOR A SHORT PERIOD THEN THEY UNDERPERFORM ADDS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A CHICAGO FIRM THAT FOLLOWS MUTUAL FUNDS THESE FUNDS HAVE DONE ABOUT AVERAGE ON A RISKADJUSTED BASIS SO FAR THIS YEAR AN ANALYSIS OF THE LARGEST SOCIALLY RESPONSIBLE FUNDS BY MORNINGSTAR SHOWS THAT IN GENERAL THEY ARE LAGGING BEHIND THE AVERAGE MUTUAL FUND IN THEIR GROUPS DREYFUS THIRD CENTURY FUND THE OLDEST AND LARGEST SOCIALLY RESPONSIBLE FUND WITH ASSETS OF 536 MILLION IS OFF 01 THROUGH LAST WEDNESDAY WHILE THE AVERAGE GROWTH FUND IS UP 39 PAX WORLD FUND THE SOCIALLY RESPONSIBLE GROUP'S SECOND LARGEST FUND WITH JUST OVER 500 MILLION IS OFF 08 THROUGH LAST WEDNESDAY TRAILING THE AVERAGE BALANCED FUND'S TOTAL RETURN OF 58 PICKING INVESTMENTS ON THE BASIS OF SOCIAL RESPONSIBILITY OR AT LEAST AVOIDING COMPANIES THAT DO SIGNIFICANT BUSINESS IN SOUTH AFRICA POLLUTE THE ENVIRONMENT OR MAKE LARGE REVENUES FROM TOBACCO WEAPONS NUCLEAR POWER ALCOHOL OR GAMBLING HAS BECOME INCREASINGLY POPULAR SOCIAL INVESTMENT FORUM A MINNEAPOLIS ADVOCACY GROUP ESTIMATES THAT ALL TOLD SOME 625 BILLION IS INVESTED BY BANKS MONEY MANAGERS FOUNDATIONS PENSION PLANS AND MUTUAL FUNDS WITH SOME KIND OF SOCIAL SCREEN IT'S A SUBJECT THAT THE INDUSTRY DOESN'T SNICKER AT ANYMORE IT'S BECOME SERIOUS MONEY SAYS JONATHAN POND A WATERTOWN MASS FINANCIAL ADVISER AND AUTHOR MOST LARGE BROKERAGE FIRMS AND LARGE MONEY MANAGERS OFFER INDIVIDUAL INVESTORS THE OPTION OF HAVING THEIR ACCOUNTS SCREENED FOR SOCIAL PURPOSES SCUDDER STEVENS & CLARK WHICH MANAGES 4 BILLION IN SOCIALLY SCREENED ASSETS SAYS ITS SOCIAL INVESTMENT BUSINESS HAS TRIPLED DURING THE PAST FOUR YEARS A GROWING NUMBER OF 401K RETIREMENT SAVINGS PLANS ALSO OFFER SOCIAL INVESTING OPTIONS ALTHOUGH STILL ONLY A SMALL PART OF THE MUTUALFUND INDUSTRY FUNDS THAT AVOID COMPANIES THAT DON'T MEASURE UP ON THE BASIS OF SOCIAL RESPONSIBILITY ARE ATTRACTING A LARGER AND LARGER FOLLOWING PAX WORLD FOR EXAMPLE SAYS IT TOOK IN 200 MILLION IN NEW MONEY IN THE PAST YEAR ALMOST DOUBLING ITS SIZE SOME SOCIALRESPONSIBILITY INVESTORS HAVE ACHIEVED GOOD RESULTS PARNASSUS FUND OF SAN FRANCISCO WHICH EMPHASIZES SMALL TO MEDIUMSIZED VALUE STOCKS RACKED UP A 329 GAIN IN THE PAST 12 MONTHS THROUGH LAST WEDNESDAY JEROME DODSON PORTFOLIO MANAGER SAYS HE FOLLOWS A CONTRARIAN STYLE BUYING STOCKS THAT THE MAJORITY OF MANAGERS HATE THIS DOESN'T MEAN THAT ALL INVESTORS WHO WANT TO INVEST ON THE BASIS OF SOCIAL RESPONSIBILITY SHOULD NECESSARILY PILE INTO PARNASSUS FUND SAYS STEVE JANACHOWSKI A PARTNER IN BROUWER & JANACHOWSKI A SAN FRANCISCO INVESTMENTMANAGEMENT FIRM HE SAYS THE FUND IS TOO VOLATILE FOR CONSERVATIVE INVESTORS WHILE IT WAS ONE OF THE TOP FUNDS IN 1992 PARNASSUS FELL 21 IN 1990 SO WHAT SHOULD INVESTORS DO IF THEY WANT TO PUT THEIR MONEY WHERE THEIR SOCIAL CONSCIENCE IS SUZANNE HARVEY DIRECTOR OF SOCIAL INVESTMENT RESEARCH FOR PRUDENTIAL SECURITIES INC SAYS IT'S IMPORTANT TO LOOK BEYOND THE SOCIAL SCREEN TO SEE WHAT OTHER INVESTMENT STYLE THE PORTFOLIO MANAGER USES INVESTORS NEED TO MAKE SURE THEY'RE COMFORTABLE WITH THE FUND'S INVESTING STYLE AS WELL AS ITS SOCIAL STYLE SHE SAYS TAKE PAX WORLD FUND FOR EXAMPLE THE PORTSMOUTH NH BALANCED FUND HOLDS A MIXTURE OF 60 STOCKS AND 40 BONDS AND WON'T INVEST IN WEAPONS MAKERS TOBACCO GAMBLING AND LIQUOR STOCKS MANAGER ANTHONY BROWN WON'T EVEN INVEST IN US TREASURY BONDS BECAUSE THE PROCEEDS CAN BE USED FOR DEFENSE HE SAYS WHAT PAX DOES INVEST IN IS QUALITY GROWTH MEDICAL AND BRANDNAME FOOD STOCKS IF YOU THINK MEDICAL STOCKS LIKE MERCK THE FUND'S LARGEST HOLDING AND BRANDNAME FOOD STOCKS LIKE QUAKER OATS AND HJ HEINZ BATTERED THIS YEAR ARE GOING TO CONTINUE TO BE UNDER PRESSURE THIS ISN'T THE FUND FOR YOU PROS SAY SOCIAL INVESTORS SHOULD ALSO TRY NOT BE TOO RESTRICTIVE SAYS MS HARVEY THE WORSTCASE SCENARIO IS AN INVESTOR WHO MEASURES COMPANIES WITH EVERY CONCEIVABLE SOCIAL CRITERION SHE SAYS THERE IS NO PERFECT COMPANY THE RESULT IS THAT THE INVESTOR'S UNIVERSE IS SO LIMITED IT'S HARD TO FIND ENOUGH COMPANIES LEFT TO BE PROPERLY DIVERSIFIED SHE SAYS PEOPLE WHO FOLLOW SOCIAL INVESTING END UP BUYING FUNDS OR HIRING MONEY MANAGERS THAT EMPHASIZE SMALLER GROWTHORIENTED COMPANIES SAYS CHRISTOPHER LUCK EQUITYSERVICES GROUP MANAGER AT BARRA MORE OF THESE COMPANIES PASS SOCIAL SCREENS BECAUSE OF THEIR MORAL DECISION SOCIAL INVESTORS END UP TAKING ON MORE RISK HE SAYS STILL THIS DOESN'T MEAN YOU'RE GOING TO GO BROKE INVESTING IN SOCIALLY RESPONSIBLE FUNDS IF YOU'RE WILLING TO ACCEPT AVERAGE PERFORMANCE AND FEEL GOOD ABOUT INVESTING IN THESE FUNDS IT'S ONE WAY TO PUT YOUR MONEY WHERE YOUR MORAL CONVICTIONS ARE BUT DON'T PLAN ON BEATING THE MARKET WITH THIS APPROACH 9307070018 930707 MARKETING & MEDIA OF LOVE IN THE CITY AND COCKROACHES THOUSANDS OF THEM MTV WITH HELP FROM GEFFEN AND TIME WARNER TRIES FIRST FULLLENGTH FEATURE BY JACK REJTMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MTV THE CABLE CHANNEL THAT BROUGHT LEATHER AND LONGHAIRED ROCKERS INTO MIDDLE AMERICA'S LIVING ROOMS IS GOING HOLLYWOOD WITH ITS FIRST FEATURE FILM STARRING A CAST OF THOUSANDS MAKE THAT HUNDREDS OF THOUSANDS OF COCKROACHES THAT IS JOE'S APARTMENT MTV'S FIRST CRACK AT A FULLLENGTH FEATURE FLICK WILL BE BASED ON A 3 1/2MINUTE AWARDWINNING SHORT THAT HAS BEEN AIRING ON THE NETWORK FOR THE PAST YEAR IN SHORT THE STORY IS ABOUT A YOUNG MAN TRYING TO COPE IN A BIG DIRTY CITY FROM HIS SMALL DIRTY APARTMENT IN THE EAST VILLAGE IT IS FULL OF TALKING DANCING AND SINGING ROACHES BUT THE MOVIE WILL BE MUCH MUCH MORE SAYS WRITER AND DIRECTOR JOHN PAYSON ALTHOUGH HIS VISION SOUNDS MORE LIKE AN AD FOR ORKIN OR MAYBE RAID BOY MEETS GIRL BOY MEETS ROACHES ROACHES LOSE GIRL FOR BOY AND ROACHES FEEL SO BAD THAT EVERY ROACH IN NEW YORK CITY CONSPIRES TO GET THE TWO LOVERS TOGETHER THE 31YEAROLD HARVARD GRADUATE SAYS IT'S REALLY A SWEET LOVE STORY MISTY SENTIMENTAL AND POIGNANT MTV IS PROVIDING THE CREATIVE TALENT WHILE BILLIONAIRE DAVID GEFFEN'S INDEPENDENT FILM STUDIO AND TIME WARNER INC'S WARNER BROS WILL FUND THE DEVELOPMENT AND PRODUCTION OF THE FILM MR PAYSON'S PROMOTIONAL IDEAS WHICH COMPARE THE FILM TO JURASSIC PARK HAVE ALREADY TAKEN FLIGHT THINK OF THE MERCHANDISE SAYS MR PAYSON WHO DEVELOPED THE BUGGY IDEA FOR HIS FEATURE BY WATCHING THE OFTREVILED PESTS CRAWL ACROSS THE WALLS OF HIS OWN EAST VILLAGE APARTMENT YOU CAN HAVE COFFEE MUGS ROACH CLIPS ROACHES IN ICE CUBES THE POSSIBILITIES ARE ENDLESS DOUG HERZOG PRESIDENT OF VIACOM INC'S MTV PRODUCTIONS SAID HE BELIEVES JOE'S APARTMENT WILL BE THE FIRST FILM STARRING COCKROACHES FROM EVERY WALK OF LIFE PUTTING THEM RIGHT UP THERE WITH BEN THE RAT AND JAWS THE SHARK ALTHOUGH MTV OFFICIALS WON'T SAY HOW MUCH THE FILM WILL COST MR PAYSON SAYS AS ACTORS GO SOME 600 CORNFED GERMAN AND AMERICAN COCKROACHES CAME CHEAP ABOUT A DOLLAR APIECE FOR HIS SHORT FILM IN THAT BIT THE BUGS SPENT MOST OF THE TIME OUT OF SIGHT UNDER THE CARPET INSIDE A LAMPSHADE UNTIL THE VERY END WHEN DOZENS FALL ALL OVER JOE'S DATE LILLY IN THE FEATURE FILM COMPUTER GRAPHICS WILL BE USED TO MULTIPLY THE IMAGES OF THE 600 ORIGINALS INTO LEGIONS OF SUPPORTING ACTORS FOR VARIOUS SCENES PULLING OUT ALL THE STOPS FOR THE HEARTWRENCHING CLIMAX WHEN THE ROACHES DECIDE CITYWIDE THAT THEY'LL GET TOGETHER FOR THESE LOVERS THEY STREAM OUT OF EVERY SEWER EVERY GARBAGE CAN EVERY PURSE AND CONGEAL IN FRONT OF LILLY AND SPELL OUT WITH ABOUT 1000 ROACHES TO THE LETTER JOE LOVES YOU' MR PAYSON SAYS IT'S LIKE THE MOST ROMANTIC VALENTINE YOU CAN GET 9307070017 930707 YIELDS ON JUNK BONDS ARE IN SINGLE DIGITS BY CONSTANCE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HIGH YIELD ISN'T WHAT IT USED TO BE THE DOUBLEDIGIT YIELDS THAT INVESTORS HAVE COME TO EXPECT IN HIGHRISK HIGH YIELD AKA JUNK BONDS ARE RAPIDLY DISAPPEARING ONE REASON INVESTORS ARE BUYING THESE BELOWINVESTMENTGRADE BONDS IN SUCH A FRENZY THAT THEIR AVERAGE YIELDS ARE BEING PUSHED TO RECORD LOWS MANY JUNKBONDS ARE NOW YIELDING BELOW 10 A LEVEL THAT CONFOUNDS SOME ANALYSTS THEY ONCE BELIEVED THAT JUNK BOND INVESTORS WOULD NEVER ACCEPT SINGLE DIGIT YIELDS ON THE SECURITIES WHICH ARE RISKIER THAN TOPRATED INVESTMENTGRADE CORPORATE BONDS EVERYONE IS SURPRISED THAT WE HAVE GONE INTO THE SINGLEDIGITS SAID KINGMAN PENNIMAN EXECUTIVE VICE PRESIDENT AND HEAD OF HIGHYIELD RESEARCH AT DUFF & PHELPS CORP INVESTORS HAVE ALWAYS ASSUMED THAT MOST HIGHYIELD BONDS WOULD HAVE YIELDS OF 10 OR HIGHER BUT THE MARKET HAS MANAGED TO BLOW THROUGH THAT LEVEL WITH NO PROBLEM AT ALL LATE LAST WEEK MERRILL LYNCH & CO'S JUNKBOND INDEX DECLINED TO 987 THE FIRST READING BELOW 10 SINCE THE INDEX WAS DEVELOPED IN 1984 THE MERRILL LYNCH INDEX WAS THE LAST OF THE MAJOR INDEXES TO SLIP BELOW 10 INDEXES COMPILED BY FIRST BOSTON & CO AND SALOMON BROTHERS INC DESCENDED INTO THE SINGLEDIGIT RANGE SEVERAL WEEKS AGO MOREOVER THE SPREAD OR GAP BETWEEN YIELDS OF JUNK BONDS AND OF TREASURY BONDS WITH SIMILAR MATURITIES IS AT ITS NARROWEST LEVEL SINCE THE MID1980S ON JUNE 30 FOR EXAMPLE THE 987 YIELD ON THE MERRILL LYNCH INDEX WAS 41 PERCENTAGE POINTS HIGHER THAN THE 577 YIELD ON THE 10YEAR US TREASURY BONDS ALTHOUGH THAT 41PERCENTAGEPOINT SPREAD FALLS WITHIN HISTORICAL LEVELS IT'S MUCH NARROWER THAN IN RECENT YEARS DURING THE JUNKBOND MARKET DEBACLE IN LATE 1990 AND EARLY 1991 THE SPREAD BETWEEN TREASURYS AND JUNKBONDS WIDENED TO AS MUCH AS 11 PERCENTAGE POINTS THE SPREAD THEN FLUCTUATED BETWEEN 5 PERCENTAGE POINTS AND 7 PERCENTAGE POINTS UNTIL RECENTLY DEMAND FOR JUNKBONDS IS OUTSTRIPPING SUPPLY BECAUSE INVESTORS ARE ANXIOUS TO DO WHAT THEY CAN TO COUNTERACT THE EFFECT OF DECLINING INTEREST RATES ON THE YIELDS OF THEIR BOND PORTFOLIOS AS A RESULT BUYERS HAVE LITTLE ABILITY TO PICK AND CHOOSE AMONG THE COMPANIES THAT ISSUED THE JUNK BONDS IN FACT BUYERS PRETTY MUCH HAVE TO TAKE WHAT'S AVAILABLE REGARDLESS OF PRICE AND YIELD AND HOPE THAT THE ECONOMY CONTINUES TO IMPROVE EVERYTHING IS RELATIVE EVEN IF YOU'RE NOW ONLY GETTING 95 ON A TOPTIER JUNKBOND THAT'S STILL THREE OR FOUR PERCENTAGE POINTS MORE THAN WHAT YOU'RE GETTING IN TREASURYS SAID STEVE GREENBLATT MARKETING DIRECTOR AT PENN CAPITAL MANAGEMENT CO MR GREENBLATT SAYS PENN CAPITAL IS CAUTIOUSLY BULLISH ABOUT THE JUNKBOND MARKET FORECASTING CONTINUED GAINS AS LONG AS CREDIT QUALITY OF THE COMPANIES ISSUING NEW BONDS DOESN'T DETERIORATE THE TIME TO BATTEN DOWN THE HATCHES IS WHEN CREDIT QUALITY ERODES HE SAID THE LOW LEVELS OF JUNK YIELDS HAVE TOUCHED OFF A DEBATE AMONG JUNKBOND ANALYSTS WHO ARE DIVIDED ABOUT THE VALUE OF THESE BONDS RELATIVE TO OTHER SECURITIES AND ABOUT THE MARKET'S PROSPECTS MARTIN FRIDSON MERRILL'S DIRECTOR OF HIGHYIELD RESEARCH SAYS THE DECLINE OF YIELDS IN THE JUNKBOND MARKET SIMPLY MIRRORS THE DECLINE IN THE TREASURY MARKET AND ISN'T A SIGN THAT THE MARKET HAS BECOME EXCESSIVELY EXPENSIVE INVESTORS ARE STILL GETTING A REASONABLE RISK PREMIUM SAYS MR FRIDSON THE YIELDS ARE LOWER IN ABSOLUTE TERMS THAN THEY WERE A COUPLE OF YEARS AGO BUT THAT IS ALSO TRUE FOR US TREASURY BONDS OTHER ANALYSTS ARGUE THE MARKET IS TOO EXPENSIVE MEANING THAT YIELDS ARE TOO LOW THERE IS A SELLER'S PREMIUM IN THIS MARKET THAT NOBODY EVER EXPECTED SOMEWHERE BETWEEN 1/2 TO 3/4 OF A PERCENTAGE POINT SAYS MR PENNIMAN OF DUFF & PHELPS BUT ONCE SUPPLY AND DEMAND COME BACK INTO BALANCE MR PENNIMAN BELIEVES WE WILL SEE JUNKBOND YIELDS RISE THE LAST INVESTORS OUT OF THE MARKET HE PREDICTS WILL BE THE ONES TO FEEL THE PAIN DOUBLEDIGIT YIELDS AREN'T ENTIRELY EXTINCT HOWEVER THE JUNKBOND MARKET IS DIVIDED INTO TIERS WITH THE HIGHEST TIER COMPOSED OF BONDS WITH CREDIT RATINGS OF AT LEAST DOUBLEB BY STANDARD & POOR'S CORP AND BA BY MOODY'S INVESTORS SERVICE ACCORDING TO CS FIRST BOSTON GROUP THE AVERAGE YIELD OF UPPERTIER JUNKBONDS IN JUNE WAS 85 THE MIDDLE TIER COMPOSED OF COMPANIES WITH RATINGS OF AT LEAST SINGLEB BY S&P AND MOODY'S WAS 96 THE LOWER TIER COMPANIES WITH RATINGS OF TRIPLEC BY S&P AND CAA BY MOODY'S WERE YIELDING ABOUT 194 FIRST BOSTON'S OVERALL AVERAGE YIELD FOR ITS JUNKBOND INDEX WAS 99 IN JUNE 9307070016 930707 INTERNATIONAL KOREA'S BID TO TRIM LARGE FIRMS IS BESET BY CONFUSION AND CONFLICT BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA AN EXECUTIVE AT DAEWOO GROUP ONE OF SOUTH KOREA'S HUGE FAMILYRUN CONGLOMERATES WINKS WHEN HE TALKS ABOUT ITS STREAMLINING PROGRAM WE'RE NOT DOING THIS BY GOVERNMENT ORDER HE SAYS IT'S DAEWOO'S INTENTION TO DO IT IN LINE WITH GOVERNMENT POLICY DAEWOO'S ANNOUNCED INTENTION TO SPIN OFF NONCORE BUSINESSES IS PART OF A WAVE OF RESTRUCTURING PACKAGES ANNOUNCED BY THE BIG CHAEBOL AS THE KOREAN CONGLOMERATES ARE KNOWN AFTER TWO DECADES OF AGGRESSIVE AND SCATTERED EXPANSION THE ANNOUNCEMENTS OF RESTRUCTURINGS ARE OSTENSIBLY IN RESPONSE TO DEMANDS BY THE COUNTRY'S REFORMMINDED PRESIDENT PRESIDENT KIM YOUNG SAM SAYS HE IS INTENT ON BREAKING THE POWER OF THE CHAEBOL WHICH HE CONDEMNS AS PROFLIGATE NEPOTISTIC AND CORRUPT HE AND HIS FELLOW REFORMERS WANT THE CHAEBOL ONCE THE STARS OF KOREA'S RAPID INDUSTRIALIZATION TAKEN DOWN A PEG OR TWO THE RESTRUCTURING PACKAGES COULD FORETELL A SEISMIC CHANGE IN THE COZY RELATIONSHIP BETWEEN GOVERNMENT AND INDUSTRY IN KOREA BUT THEY COULD ALSO BE DECOYS FLOATED TO DECEIVE THE REFORMERS ADDING TO THE CONFUSION IS PRESIDENT KIM HIMSELF WHO SEEMS AS UNFOCUSED ON THE ISSUE AS THE SPRAWLING BUSINESS EMPIRES HE HAS VOWED TO OVERHAUL THE TOP POLICY MAKERS DON'T HAVE ANY CLEAR IDEA OF WHAT THEY NEED TO DO SAYS YOO SUNG MIN OF THE STATERUN KOREA DEVELOPMENT INSTITUTE THEY ARE AFRAID TO TAKE A POSITION BUT THEY SHOULD ANNOUNCE SOMETHING SOON SO KOREAN FIRMS CAN BE CERTAIN ABOUT THE FUTURE IF ANYONE CAN EFFECTIVELY STARE DOWN THE CHAEBOL IT IS MR KIM A FORMER DISSIDENT WITH LITTLE AFFECTION FOR KOREA'S INDUSTRIAL DYNASTIES HE HAS DEFTLY USED HIS MORAL AUTHORITY AS KOREA'S FIRST CIVILIAN PRESIDENT TO PURGE SOME OF THE COUNTRY'S MOST POWERFUL MILITARY AND POLITICAL OFFICIALS ALONG THE WAY HE HAS GENERATED AN APPROVAL RATING OF MORE THAN 80 YET MR KIM HAS MIXED HIS VOWS TO OVERHAUL THE CHAEBOL WITH VAGUE ASSURANCES AGAINST DRAMATIC REFORM A REFLECTION OF THE LIMITATIONS IMPOSED ON HIM BY KOREA'S SLUGGISH ECONOMY TO DELIVER A RECOVERY HE NEEDS HELP FROM THE SAME FAMILIES WHO HAVE THE MOST TO LOSE FROM REFORM GOVERNMENT PLANNERS ARE RELYING HEAVILY ON THE CHAEBOL FOR AGGRESSIVE CAPITAL INVESTMENT TO MATCH GROWTH PROJECTIONS FOR THE NEXT FIVE YEARS INDEED IT WAS THE GOVERNMENT THAT EMPOWERED THE CHAEBOL AND THE FAMILIES THAT RUN THEM WITH A RAFT OF SUBSIDIZED LOANS IN THE 1960S AND '70S HIGH CORPORATE TAX RATES AND THE GOVERNMENT'S IMPLICIT GUARANTEES AGAINST BANKRUPTCIES ENCOURAGED THE CHAEBOL TO AMASS HUGE DEBTS TO INVEST IN AN ARRAY OF INDUSTRIES PROTECTED AND WELLFUNDED THE CHAEBOL ARE AS POWERFUL AS THEY ARE INBRED AFFILIATES WITHIN THE GROUPS ARE BOUND BY AN OPAQUE NETWORK OF CROSS SHAREHOLDINGS ACCORDING TO GOVERNMENT FIGURES RELEASED LAST WEEK THE MAJORITY SHAREHOLDER IN THE TOP 30 CHAEBOL ON AVERAGE CONTROLS EITHER DIRECTLY OR INDIRECTLY 43 OF THE GROUP'S TOTAL EQUITY THE RATIO IS GENERALLY HIGHER AMONG THE LARGER CONGLOMERATES TO REDUCE COSTS CHAEBOL AFFILIATES WILL SELL OR TRADE MATERIALS OR LEND MONEY AND GUARANTEE LOANS AT DISCOUNTS TO MARKET VALUE REVENUE FROM PROFITABLE COMPANIES IS OFTEN CHANNELED TO LOSSMAKERS INVENTORIES ARE SHIFTED FROM ONE FACTORY TO ANOTHER TO ESCAPE AUDITS THE RESULT HAS BEEN STRUCTURAL INEFFICIENCIES THAT HAVE ERODED THE QUALITY AND PRICE COMPETITIVENESS OF KOREAN GOODS TAMING THE CONGLOMERATES HAS BEEN A POLITICAL RALLYING CRY IN KOREA FOR YEARS BUT ATTEMPTS TO PARE THEM DOWN HAVE HAD LITTLE SUCCESS THE GOVERNMENT IN 1991 AUTHORIZED INCENTIVES TO ENCOURAGE THE CHAEBOL TO FOCUS ON THEIR CHOICE OF THREE STRATEGIC AREAS WHILE SHEDDING NONCORE BUSINESSES INSTEAD THE SAMSUNG AND DAEWOO GROUPS ARE INVESTIGATING ENTERING THE PASSENGERVEHICLE AND OILEXPLORATION INDUSTRIES RESPECTIVELY IN WHICH NEITHER HAS MUCH DIRECT EXPERIENCE MR KIM HAS SAID THE GOVERNMENT'S ABILITY TO OVERHAUL THE CHAEBOL IS LIMITED BUT SINCE HE TOOK OFFICE IN FEBRUARY HE HAS RATTLED INDUSTRIALISTS WITH REGULATIVE TINKERING AND POLITICAL GESTURES IN MARCH THE GOVERNMENT SAID IT WOULD TIGHTEN RESTRICTIONS ON INTERNAL TRADING AND THE LEVEL OF DEBTPAYMENT GUARANTEES GROUP AFFILIATES CAN ISSUE ONE ANOTHER IT ALSO CLOSED LOOPHOLES THAT ENABLE INDUSTRIALISTS TO EVADE INHERITANCE TAXES WHEN BEQUEATHING TO FAMILY MEMBERS THEIR SLICE OF THE KOREAN ECONOMY 9307070015 930707 LEISURE & ARTS MUSIC SEXISM IN THE BRASS SECTION BY BARBARA JEPSON ST LOUIS THERE I WAS SEATED ON THE FRINGES OF A MODERATELY SIZED PRACTICE ROOM IN WHICH 18 TUBISTS AND THREE EUPHONIUM PLAYERS WERE SIGHTREADING MARCHES AND MOOD MUSIC AND I SAID TO MYSELF WHAT'S WRONG WITH THIS PICTURE THE PROBLEM WAS THAT 18 OF THE 21 MUSICIANS WERE WOMEN AND MY BRAIN LONG ACCUSTOMED TO THE SIGHT OF EXCLUSIVELY MALE BRASS SECTIONS IN MOST SYMPHONY ORCHESTRAS WAS UNDERGOING CULTURE SHOCK I FELT THAT WAY EVEN THOUGH I HAD KNOWN LONG IN ADVANCE I WOULD BE ATTENDING THE FIRST INTERNATIONAL WOMEN'S BRASS CONFERENCE IWBC HERE ON THE VERDANT CAMPUS OF WASHINGTON UNIVERSITY OPEN TO BRASS ENTHUSIASTS OF BOTH SEXES THE FIVEDAY EVENT ORGANIZED BY SUSAN SLAUGHTER PRINCIPAL TRUMPET OF THE ST LOUIS SYMPHONY ATTRACTED 248 FEMALE AND 48 MALE MUSICIANS TEACHERS AND STUDENTS OF ALL AGES SIZES AND HAIRDOS AMONG THE WOMEN LONG FLOWING TRESSES AND CREW CUTS WERE OBSERVED IN APPROXIMATELY EQUAL NUMBERS WITH THE MAJORITY OPTING FOR SOMETHING IN BETWEEN DESPITE ITS EXCLUSIONARY TITLE THE CONFERENCE PROVED TO BE A CONVIVIAL LARGELY CELEBRATORY AFFAIR THAT AVOIDED POLITICAL POLEMICS AND ALLOUT MALE BASHING THE FOCUS WAS ON USEFUL MUSICAL AND MEDICAL MATTERS RANGING FROM FREELANCE TROMBONIST ANGELA WELLMAN'S LIVELY WORKSHOP IN JAZZ IMPROVISATION WHICH HAD PARTICIPANTS PLAYING A 12BAR BLUES BY THE END OF THE SESSION TO A SEMINAR EXPLAINING HOW BIOFEEDBACK CAN HELP REDUCE PREPERFORMANCE ANXIETY IN THE PROCESS THE IWBC PROVIDED A FORUM FOR THE DISCUSSION OF ISSUES THAT HAVE SO FAR GONE UNHEEDED BY THE ESTABLISHED BRASSINSTRUMENT CONFERENCES PERHAPS THIS IS NOT SURPRISING GIVEN THAT ONE OF THEM IS CALLED THE TUBISTS UNIVERSAL BROTHERHOOD ASSOCIATION AND ANOTHER THE INTERNATIONAL TRUMPET GUILD FAILED TO PRESENT EVEN A TOKEN WOMAN AMONG THE 15 SOLOISTS AT ITS 1993 EVENT THE ST LOUIS MEETING JUMPED WAY BEYOND TOKENISM TO AN AGENDA THAT INCLUDED A WORKSHOP ON PREGNANCY AND PLAYING A BRASS INSTRUMENT IN WHICH THE LEADING TOPIC WAS WHETHER PLAYING SUSTAINED LOUD HIGH NOTES DURING THE LAST TWO MONTHS OF PREGNANCY CAN CAUSE DILATION OR PREMATURE BIRTH MAHLER'S THIRD SYMPHONY AND THE OFFSTAGE TRUMPET PARTS IN THE BERLIOZ REQUIEM ARE APPARENTLY PARTICULARLY HAZARDOUS THE IWBC ALSO OFFERED A PROGRESS REPORT ON WOMEN IN THE MUSICAL MARKETPLACE THE GOOD NEWS IS THAT THERE'S BEEN A STEADY INFLUX OF FEMALE BRASS MUSICIANS ESPECIALLY HORN PLAYERS INTO THE RANKS OF THE MAJOR SYMPHONY ORCHESTRAS AND TWO WOMEN NOW HOLD SECTION JOBS IN THE CHICAGO SYMPHONY AND LOS ANGELES PHILHARMONIC RESPECTIVELY THE BAD NEWS IS THAT PRINCIPAL POSITIONS IN THE BEST ORCHESTRAS ARE STILL HARD TO COME BY AND OFFENSIVE BEHAVIOR BY CONDUCTORS AND COLLEAGUES PERSISTS INSTEAD OF MINDING THEIR MOZART DURING REHEARSALS SOME MALE MUSICIANS SWAP OBSCENE JOKES OR ASSESS THE ATTRIBUTES OF FEMALE SOLOISTS IN THE PRESENCE OF FEMALE COLLEAGUES FLAGRANT DISCRIMINATION EXISTS AS WELL ABBIE CONANT ENDURED MORE THAN A DECADE OF SEXUAL POLITICS AT THE MUNICH PHILHARMONIC HER CAREER THERE BEGAN PLEASANTLY ENOUGH WHEN SHE WAS A 25YEAROLD TROMBONIST FROM OKLAHOMA AND SERGIU CELIBIDACHE THE GENERAL MUSIC DIRECTOR HIRED HER IN 1980 AS ONE OF TWO SOLO TROMBONISTS IT WAS ONLY HER SECOND FULLTIME ORCHESTRAL JOB AFTER EARNING A MASTER'S DEGREE FROM THE JUILLIARD SCHOOL IN NEW YORK AND MS CONANT WAS ELATED I FELT I HAD A BRIGHT FUTURE SAYS THIS AFFABLE DOWNTOEARTH WOMAN WITH FRIZZLED REDDISHBROWN HAIR THE TROUBLE STARTED IN MAY 1981 AFTER HER FORMAL PROBATIONARY PERIOD HAD PASSED WITHOUT INCIDENT SHE WAS INFORMED THAT MR CELIBIDACHE WANTED TO DEMOTE HER TO SECOND TROMBONE SHOCKED BECAUSE NO WRITTEN WARNINGS HAD BEEN PROVIDED AS REQUIRED BY THE GERMAN MUSICIANS UNION MS CONANT OFFERED TO REPEAT HER PROBATIONARY YEAR TO RESOLVE ANY PROBLEMS WITH HER PLAYING MONTHS LATER SHE REQUESTED A MEETING WITH THE ECCENTRIC ROMANIAN MAESTRO KNOWN FOR HIS EXTREME TEMPOS AND REVELATORY PERFORMANCES YOU KNOW THE PROBLEM MR CELIBIDACHE ALLEGEDLY TOLD HER WE NEED A MAN FOR SOLO TROMBONE MR CELIBIDACHE DECLINED TO BE INTERVIEWED FOR THIS ARTICLE MS CONANT FILED SUIT TO REGAIN HER SOLOTROMBONE STATUS THE UNION AGREED TO PAY HER LEGAL COSTS AND LITIGATION BEGAN IN THE SUMMER OF 1982 DURING THE ENSUING TRIALS AND APPEALS MS CONANT WAS REQUIRED TO SOLICIT TESTIMONIALS ABOUT HER PLAYING FROM CONDUCTORS AND COLLEAGUES AND TO UNDERGO A TEST OF HER BREATHING CAPACITY AT A NEARBY LUNG CLINIC SHE WAS ALSO FORCED TO PLAY SEVEN DEMANDING PASSAGES FROM THE REPERTOIRE FOR A COURTAPPOINTED TROMBONE SPECIALIST HIS REPORT INCLUDED THE FOLLOWING OBSERVATIONS SHE IS A WIND PLAYER WITH AN OUTSTANDINGLY WELLTRAINED EMBOUCHURE WHICH GIVES HER THE OPTIMAL USE OF HER BREATH VOLUME HER PLAYING EVEN IN THE MOST DIFFICULT PASSAGES IS SUPERIOR AND EASY SHE HAS ENORMOUSLY SOLID NERVES MR CELIBIDACHE REMAINED OBDURATE MS CONANT NOW BELIEVES THAT HE DIDN'T WANT TO HIRE HER IN THE FIRST PLACE THE AUDITION INVITATION SENT TO HER BY THE ORCHESTRA WAS ADDRESSED TO HERR ABBIE CONANT AND THE FIRST OF THREE ROUNDS WAS HELD BEHIND A SCREEN DESPITE ITS SURPRISE THAT TROMBONE 16 WAS A WOMAN THE ORCHESTRA COMMITTEE VOTED TO HIRE HER MR CELIBIDACHE NEWLY APPOINTED HIMSELF DID NOT VETO THE DECISION MS CONANT THEORIZES THAT HE DID NOT WANT TO RISK OFFENDING THE ORCHESTRA OR JEOPARDIZE HIS ONGOING NEGOTIATIONS WITH THE CITY OF MUNICH SINCE THEN SHE SAYS NO SCREENS HAVE BEEN USED IN THE PHILHARMONIC'S AUDITIONS IN 1988 THE JUDGE REJECTED THE ORCHESTRA'S APPEAL OF AN EARLIER COURT DECISION IN MS CONANT'S FAVOR AND RULED THAT SHE BE REINSTATED AS COPRINCIPAL TROMBONE THE ORCHESTRA COMPLIED BUT PLACED HER IN A LOWER PAY CATEGORY THAN ANY OF HER MALE COLLEAGUES HOLDING PRINCIPAL POSITIONS IN THE WIND SECTION THAT LED TO A SECOND SUIT THAT WAS FINALLY RESOLVED IN HER FAVOR IN MARCH SHE WAS AWARDED THE BACKPAY DIFFERENTIAL OWED HER FROM 1988 UNDER GERMAN LAW ECONOMIC SANCTIONS IN SUCH CASES ARE RARE BY THAT TIME HOWEVER MS CONANT HAD SECURED A HIGHERPAYING POSITION AS TROMBONE PROFESSOR WITH A MUSIC SCHOOL NEAR STUTTGART AND NEGOTIATED A SEVERANCE CONTRACT WITH THE ORCHESTRA ASKED TO COMMENT ON THE COURT DECISION NORBERT THOMAS MANAGER OF THE PHILHARMONIC WOULD ONLY SAY WE ARE HAPPY THAT MS CONANT IS NO LONGER WITH US AS FOR THE TROMBONIST AFTER SHE INITIALLY WON THE FINAL APPEAL SHE FELT EXTREME JOY AND A SENSE OF VINDICATION BUT SHE ADDS WHEN YOU'VE FOUGHT FOR SOMETHING FOR A LONG TIME YOU BUILD CERTAIN DEFENSES THAT YOU DON'T EVEN KNOW ARE THERE NOW THEY'RE STARTING TO RELAX SHE OBSERVES PAUSING TO GLANCE AT A 23PAGE FOOTNOTED DOCUMENT SHE PROVIDED FOR THIS ARTICLE I WAS PROOFREADING THIS A FEW DAYS AGO AND I THOUGHT ALL THIS ACTUALLY HAPPENED TO ME AND I WEPT MS CONANT'S STORY WAS VERY MUCH ON THE MINDS OF THOSE WHO GATHERED FOR THE PACKED IWBC SESSION WORKING WITH AND FOR THE OPPOSITE SEX HOWEVER THE TYPES OF DISCRIMINATION DESCRIBED BY THE PANELISTS WERE LESS BLATANT BETTY GLOVER A RETIRED TROMBONIST WITH THE CINCINNATI SYMPHONY SUGGESTED THAT WOMEN DEAL WITH INNUENDOES AS THEY HAPPEN SHE ADDED DON'T SHOW YOU'RE UPSET SOME MEN WILL PERSIST MORE OTHERS PREACHED FORBEARANCE IN THE FACE OF HUMAN IMPERFECTIONS OR HOPE FOR THE FUTURE MOST OF MY STUDENTS AT THE EASTMAN SCHOOL OF MUSIC ARE MEN NOTED TRUMPETER BARBARA BUTLER A MEMBER OF THE EASTMAN BRASS QUINTET AND I CAN'T THINK OF A BETTER WAY TO AFFECT THEIR ATTITUDES THAN BY BEING THEIR TEACHER PERHAPS THE BEST ADVICE CAME FROM NEW YORK FREELANCER LAURIE FRINK A 20YEAR VETERAN OF BROADWAY PIT ORCHESTRAS WHO PLAYED LEAD TRUMPET WITH BIG BANDS SUCH AS DIZZY GILLESPIE'S KEEP A SENSE OF HUMOR SHE SAID KEEP YOUR FOCUS ON MUSICAL GOALS CONTINUE TO ASPIRE TO BE THE BEST MUSICIAN YOU CAN BE INDEED THE MOST IMPRESSIVE PART OF THE CONFERENCE WAS THE MUSICMAKING HEATHER BUCHMAN THE YOUNG PRINCIPAL TROMBONIST OF THE SAN DIEGO SYMPHONY PERFORMED KATHRYN ALEXANDER'S DANCE THE ORANGE A WITTY TOUR DE FORCE FOR TROMBONE INSPIRED BY A RILKE POEM THE WORK GIVES THE INSTRUMENT THE CHANCE TO SPEAK IN DIFFERENT TONGUES VIA THE USE OF FIVE MUTES AND HUMOROUS AVANTGARDE TECHNIQUES SUCH AS EMITTING TINY SQUEALS INTO THE MOUTHPIECE IF THE SYMPHONIC MARKETPLACE IS AS BIASFREE AS IT CLAIMS SAN DIEGO WILL NOT BE ABLE TO KEEP MS BUCHMAN MUCH LONGER FOR HER PART MS CONANT GAVE THE MEETING ITS MOST POIGNANT MUSICAL MOMENT PART II OF MIRIAM A HARROWING MUSICTHEATER PIECE INSPIRED BY HER OWN EMOTIONAL TRAUMA WITH THE MUNICH PHILHARMONIC ON A DARKENED STAGE SHE PORTRAYED A FEMALE ASYLUM INMATE CONFINED IN A CHAIR OUTFITTED WITH WRIST CUFFS THAT PERIODICALLY SNAPPED SHUT OR OPEN SLIPPING IN AND OUT OF HALLUCINATORY STATES SHE SPOKE SANG AND PLAYED THE TROMBONE AGAINST THE BACKDROP OF A SCORE FOR COMPUTERCONTROLLED DIGITAL PIANO WRITTEN BY WILLIAM OSBORNE MS CONANT'S HUSBAND THERE WAS ALSO THE HIGHCALIBER PLAYING OF SUCH FEATURED ARTISTS AS MS SLAUGHTER THE TROMBONE QUARTET PRISMAAND HORNIST KRISTIN THELANDER JAZZ TROMBONISTS ANGELA WELLMAN AND AUDREY MORRISON STARRED IN AN OPENINGNIGHT TRIBUTE TO THE RETIRED JAZZ TRUMPETER MELBA LISTON FORMERLY A COMPOSER AND ARRANGER WITH DIZZY GILLESPIE'S BAND MS LISTON NOW CONFINED TO A WHEELCHAIR CAME ONSTAGE TO ACCEPT A GIFT THAT SURPRISED AND TOUCHED HER THE FIRST PUBLISHED SCORE OF ONE OF HER ARRANGEMENTS BUT THE MOST VALUABLE ASPECT OF THE IWBC WHICH IS TENTATIVELY SLATED TO RECUR IN 1996 WAS THAT IT COUNTERACTED THE SENSE OF DIFFERENTNESS OR ISOLATION FELT BY MANY LONE FEMALE PLAYERS IN BRASS SECTIONS SAID 21YEAROLD AMIE CAMPBELL A TROMBONE STUDENT AT THE CINCINNATI CONSERVATORY OF MUSIC EVEN THOUGH I'VE STUDIED WITH A WOMAN SHE'S RETIRED AND I SAW HER SUCCESS AS THE EXCEPTION TO THE RULE BUT AT THIS CONFERENCE I'VE SEEN SO MANY WOMEN WHO ARE MAKING IT AS BRASS PLAYERS RIGHT NOW IT'S CHANGED MY SENSE OF IMMINENT DOOM ABOUT MY CAREER TO ONE OF IMMINENT SUCCESS MS JEPSON IS A MUSIC WRITER IN NEW YORK 9307070014 930707 BUSINESS BRIEFS GENERAL ELECTRIC CO'S GE POWER GENERATION UNIT RECEIVED A 34 MILLION ORDER FROM ISRAEL ELECTRIC CORP TO SUPPLY THREE GASTURBINE GENERATORS DIEBOLD INC FORMED A JOINT VENTURE WITH CLOSELY HELD MEDSELECT SYSTEMS INC TERMS WEREN'T DISCLOSED THE COMPANIES SAID THEY WILL WORK TO IMPROVE EFFICIENCY IN MEDICINE DISPENSING AND BILLING IN HEALTHCARE FACILITIES THROUGH AUTOMATION COCACOLA BOTTLING CO CONSOLIDATED SAID IT COMPLETED A JOINT VENTURE AGREEMENT WITH COCACOLA CO TO EXPAND ITS SALES TERRITORIES IN NORTH AND SOUTH CAROLINA TERMS WEREN'T DISCLOSED MCDERMOTT INTERNATIONAL INC'S BABCOCK & WILCOX CO UNIT WAS AWARDED A 123 MILLION CONTRACT TO SUPPLY AN ANTIPOLLUTION SYSTEM TO TAIWAN POWER CO A GOVERNMENTOWNED UTILITY HEALTH IMAGES INC HAS HELD INFORMAL MERGER TALKS WITH COMPANIES INCLUDING IMAGEAMERICA INC AIR CANADA SOLD TWO BOEING 747433 AIRCRAFT TO GENERAL ELECTRIC CAPITAL CORP FOR 240 MILLION AND ENTERED INTO A LONGTERM LEASE TO CONTINUE USING THE PLANES 9307070013 930707 A JOURNEY THROUGH THE FILES OF TRAVELGATE EXCERPTS FROM THE WHITE HOUSE'S INTERNAL REPORT ON THE SCANDAL AT THE TRAVEL OFFICE ON MAY 11 ON THE PRESIDENTIAL TRIP TO CHICAGO CLINTON COUSIN CATHERINE CORNELIUS WAS PAGED BY THE TRAVEL OFFICE AND GIVEN A MESSAGE TO CALL A REPORTER AT TIME MAGAZINE THE REPORTER ASKED IF CORNELIUS IS THE PRESIDENT'S COUSIN SHE TOLD THE REPORTER SHE WOULD HAVE TO CALL BACK BUT WAS CONCERNED ABOUT THE CALL AND MENTIONED IT TO DEPUTY COMMUNICATIONS DIRECTOR JEFF ELLER WITH WHOM SHE HAD A PERSONAL RELATIONSHIP ON MAY 12 HAVING RETURNED FROM CHICAGO CORNELIUS MET WITH CLINTON FRIEND HARRY THOMASON THEY DISCUSSED THEIR RESPECTIVE CONCERNS ABOUT THE TRAVEL OFFICE AND CONCLUDED THAT PERSONS THERE MIGHT BE ENGAGED IN WRONGDOING IN THE EARLY AFTERNOON OF MAY 12 DAVID WATKINS ASSISTANT TO THE PRESIDENT FOR MANAGEMENT AND ADMINISTRATION SET UP A MEETING WITH DEPUTY WHITE HOUSE COUNSEL VINCENT FOSTER WATKINS WAS ACCOMPANIED BY CORNELIUS AND THOMASON THEY INFORMED FOSTER OF THEIR CONCERNS ABOUT THE TRAVEL OFFICE FOSTER HAD ANOTHER APPOINTMENT SO THE MEETING ADJOURNED FOR A SHORT TIME RECONVENING LATER THAT AFTERNOON ASSOCIATE WHITE HOUSE COUNSEL WILLIAM KENNEDY JOINED THIS SECOND MEETING FOSTER AND KENNEDY RECOMMENDED THAT THE TRAVEL OFFICE BE AUDITED BUT WATKINS STATED THAT THE WHITE HOUSE HAD NO AUDIT CAPABILITY IN LIGHT OF THIS THE PARTICIPANTS WERE UNSURE HOW TO PROCEED IN PURSUING THE ALLEGATIONS OF FINANCIAL MISMANAGEMENT KENNEDY THE WHITE HOUSE SECURITY OFFICER WAS DESIGNATED TO IDENTIFY A COURSE OF ACTION AFTER THE WHITE HOUSE COUNSEL'S DAILY MORNING STAFF MEETING ON THURSDAY MAY 13 FOSTER ASKED KENNEDY IF HE HAD COME UP WITH A PLAN TO LOOK INTO THE SITUATION IN THE TRAVEL OFFICE FOSTER WAS CONCERNED THAT THE EVIDENCE OF POSSIBLE WRONGDOING MIGHT BE TAMPERED WITH OR DESTROYED KENNEDY SAID HE HAD CALLED JIM BOURKE AT THE FBI FOR ADVICE AND WAS AWAITING FURTHER WORD FROM BOURKE AFTER KENNEDY RETURNED TO HIS OFFICE BOURKE CALLED SEEKING FURTHER DETAIL TO AID IN DETERMINING WHICH FBI UNIT MIGHT HAVE JURISDICTION KENNEDY INDICATED THAT HE NEEDED BOURKE TO PROMPTLY PROVIDE HIM WITH A CONTACT WHO COULD GIVE HIM GUIDANCE ON HOW THE MATTER SHOULD BE HANDLED ACCORDING TO BOURKE KENNEDY SAID THAT HE NEEDED TO HEAR FROM BOURKE WITHIN THE NEXT FIFTEEN MINUTES AND THAT IF THE FBI WERE UNABLE TO PROVIDE GUIDANCE KENNEDY MIGHT HAVE TO SEEK GUIDANCE FROM ANOTHER AGENCY SUCH AS THE IRS ON THURSDAY AFTERNOON MAY 13 WATKINS DECIDED THAT HE COULD USE A NONGOVERNMENT AUDITOR TO REVIEW THE TRAVEL OFFICE AND CALLED THE ACCOUNTING FIRM OF KPMG PEAT MARWICK PEAT MARWICK WAS RECOMMENDED BY AN OFFICE OF ADMINISTRATION ASSISTANT WHO HAD ATTENDED A SEMINAR GIVEN BY ONE OF THE FIRM'S PARTNERS UNDER THE AUSPICES OF VICE PRESIDENT GORE'S NATIONAL PERFORMANCE REVIEW WATKINS ASKED THEM TO BEGIN A FINANCIAL REVIEW OF THE TRAVEL OFFICE THE NEXT MORNING FOSTER AGREED TO THE PEAT MARWICK REVIEW BELIEVING IT TO BE A MORE CAUTIOUS AND LOWKEY APPROACH THAN HAVING THE FBI IMMEDIATELY COMMENCE ITS INVESTIGATION FOSTER ASKED THE FBI TO WAIT FOR THE RESULTS OF THE PEAT MARWICK FINANCIAL REVIEW BEFORE PROCEEDING WITH ITS INVESTIGATION AFTER INITIALLY EXPRESSING A PREFERENCE FOR AGENTS TO ACCOMPANY THE PEAT MARWICK TEAM FBI AGENT RICHARD WADE AGREED WITH FOSTER AND KENNEDY TO WAIT FOR THE COMPLETION OF PEAT MARWICK'S REVIEW FOSTER WATKINS AND WATKINS AIDE PATSY THOMASSON MET WITH CHIEF OF STAFF THOMAS F MACK MCLARTY LATE IN THE AFTERNOON AND MCLARTY APPROVED PROCEEDING WITH THE PEAT MARWICK REVIEW THAT AFTERNOON BEFORE FOSTER TALKED TO WATKINS ABOUT PEAT MARWICK FOSTER WENT TO SEE THE FIRST LADY ON A MATTER UNRELATED TO THE TRAVEL OFFICE THE FIRST LADY TOLD FOSTER THAT SHE HAD HEARD ABOUT PROBLEMS IN THE TRAVEL OFFICE FOSTER REPLIED THAT KENNEDY WAS LOOKING INTO IT LATE THAT AFTERNOON SHE SAW MCLARTY AND INQUIRED ABOUT THE SITUATION IN THE TRAVEL OFFICE FOSTER SUBSEQUENTLY INFORMED HER THAT PEAT MARWICK WAS GOING TO CONDUCT A REVIEW OF THE OFFICE ON MAY 13 AND 14 THOMASON CORNELIUS AND ELLER URGED THAT THE TRAVEL OFFICE MATTER BE DEALT WITH PROMPTLY MCLARTY DECIDED THAT NO ACTION WOULD BE TAKEN UNTIL THE COMPLETION OF THE PEAT MARWICK REVIEW DURING THE NEXT THREE DAYS PEAT MARWICK REVIEWED THE FINANCIAL RECORDS AND CONDUCT OF THE OFFICE PEAT MARWICK WAS UNABLE TO CONDUCT A FORMAL AUDIT BECAUSE THE FINANCIAL RECORDS WERE TOO DISORGANIZED AND IRREGULAR TO BE AUDITABLE PEAT MARWICK FOUND SIGNIFICANT WEAKNESSES IN THE EXISTING INTERNAL CONTROL SYSTEMS IN THE TRAVEL OFFICE INCLUDING A LACK OF FINANCIAL CONTROL CONSCIOUSNESS NO FORMAL FINANCIAL REPORTING PROCESS NO DOCUMENTED SYSTEM OF CHECKS AND BALANCES ON TRANSACTIONS AND ACCOUNTING DECISIONS AND NO APPARENT OVERSIGHT BEGINNING FRIDAY AND OVER THE WEEKEND WATKINS RECEIVED TELEPHONE UPDATES ON THE PROGRESS OF THE PEAT MARWICK REVIEW LATE FRIDAY AFTERNOON HE RECEIVED AN UPDATE FROM PATSY THOMASSON ON THE PROGRESS OF THE PEAT MARWICK REVIEW HE THEN TALKED TO FOSTER ABOUT THE REVIEW FOSTER IN LIGHT OF THE FIRST LADY'S INQUIRY THE PREVIOUS DAY SUGGESTED WATKINS UPDATE HER WATKINS THEN CALLED THE FIRST LADY AND UPDATED HER ABOUT THE SITUATION IN THE TRAVEL OFFICE ON MONDAY MAY 17 WITH PEAT MARWICK'S FIELD WORK AND A ROUGH DRAFT REPORT COMPLETED WATKINS DECIDED TO DISMISS THE SEVEN EMPLOYEES MCLARTY APPROVED WATKINS WROTE A MEMO TO MCLARTY IN WHICH HE STATED THAT A REVIEW OF THE TRAVEL OFFICE WHICH WOULD HAVE OCCURRED ANYWAY UNDER THE AUSPICES OF THE VICE PRESIDENT'S NATIONAL PERFORMANCE REVIEW WAS ACCELERATED IN RESPONSE TO THE URGINGS OF HARRY THOMASON AND CATHERINE CORNELIUS WATKINS CC'D MRS CLINTON 9307070012 930707 GAS TAX RISE PUTS BRAKE ON ECONOMY BY JD FOSTER WHEN THE SENATE FINANCE COMMITTEE KILLED OFF THE COMPLEX AND ECONOMICALLY PAINFUL BTU ENERGY TAX GREAT SIGHS OF RELIEF WERE HEARD FROM MEMBERS OF CONGRESS REPRESENTING OILLADEN STATES LIKE OKLAHOMA AND LOUISIANA BUT OVERLOOKED HAS BEEN THE BTU TAX'S REPLACEMENT AN INCREASE OF 43 CENTS IN THE FEDERAL TAX ON GASOLINE AND ALMOST ALL OTHER TRANSPORTATION FUELS WHILE THIS MAY SEEM LIKE A SMALL INCREASE ON ITS FACE IT'S PART OF A PATTERN OF BURDENSOME FUEL TAX INCREASES IN RECENT YEARS INCREASING THE GAS TAX HAS BECOME A COMMON TACTIC TO RAISE REVENUES EVEN AS THE FEDERAL GOVERNMENT AND NUMEROUS STATE GOVERNMENTS HAVE ENCOUNTERED INCREASED OPPOSITION TO ALL FORMS OF TAXATION BUT IF THE PROPOSED INCREASE IS APPROVED THE FEDERAL EXCISE ON FUEL WILL HAVE INCREASED BY 144 CENTS A GALLON SINCE 1982 A 360 INCREASE IN THE CURRENT CASE THE OSTENSIBLE PURPOSE FOR RAISING THE GAS TAX IS DEFICIT REDUCTION AN OFTCITED STATISTIC IS THAT EACH ONECENT INCREASE IN THE TAX WILL RAISE AN ADDITIONAL 1 BILLION IN TAX REVENUES BUT WHAT'S FORGOTTEN IS THAT WHEN THE GAS TAX GOES UP IT HAS A RIPPLE EFFECT ON NEARLY ALL FORMS OF COMMERCE MOST OF THE GOODS MADE OR SOLD IN AMERICA AS WELL AS THE PARTS WITH WHICH THEY ARE MADE MUST BE TRANSPORTED IN SOME WAY THAT INVOLVES FUEL RAW MATERIALS ARE MOVED TO REFINERIES PARTS ARE MOVED TO ASSEMBLERS AND FINAL GOODS ARE MOVED TO STORES HENCE INCREASED GAS TAXES RAISE THE PRICE OF EACH STAGE OF THE PRODUCTION PROCESS AND SUPPRESS ECONOMIC ACTIVITY ULTIMATELY LOWERING TAX REVENUE A STUDY BY THE WASHINGTONBASED INSTITUTE FOR RESEARCH ON THE ECONOMICS OF TAXATION FOUND THAT A 10CENT GAS TAX HIKE WOULD REDUCE GROSS NATIONAL PRODUCT BY 26 BILLION ANNUALLY WHILE RAISING ONLY 75 BILLION IN TAX REVENUES PERHAPS THE MOST FREQUENTLY CITED JUSTIFICATION FOR RAISING THE GAS TAX IS THAT COMPARED TO EUROPEAN COUNTRIES GAS TAXES IN AMERICA ARE REMARKABLY LOW THE ARGUMENT GOES SOMETHING LIKE THIS BECAUSE A DEVELOPED COUNTRY LIKE THE NETHERLANDS HAS A GAS TAX EIGHT TIMES HIGHER THAN AMERICA'S AMERICA SHOULD RAISE ITS TAX THE FAULTY LOGIC EMPLOYED HERE IS EASILY DECIPHERED BUT IT'S IMPORTANT TO HIGHLIGHT A MORE IMPORTANT REASON WHY THE EUROPEAN EXAMPLE DOES NOT APPLY TO THE US THERE ARE MANY FUNDAMENTAL DIFFERENCES BETWEEN EUROPEAN COUNTRIES AND AMERICA A BIG ONE IS GEOGRAPHY AMERICA IS MUCH BIGGER THAN EUROPEAN COUNTRIES WITH MANY MORE MILES OF FREEWAY PER CAPITA THIS TRANSLATES TO HIGHER COSTS INVOLVED WITH TRANSPORTING PEOPLE AND PRODUCTS OUR TAX CODE CURRENTLY REFLECTS THIS IT SHOULD CONTINUE TO DO SO BUT NOT ALL TAXES ARE CREATED EQUAL SUFFERING DISPROPORTIONATELY FROM AN INCREASE IN THE GAS TAX WOULD BE THE POOR AND RESIDENTS OF RURAL AREAS FOR EXAMPLE AS A PERCENTAGE OF INCOME THE GAS TAX BURDEN ON FAMILIES EARNING LESS THAN 10000 A YEAR IS MORE THAN SEVEN TIMES HIGHER THAN THAT ON FAMILIES EARNING OVER 100000 MOREOVER RESIDENTS OF RURAL STATES LIKE MONTANA AND WYOMING WILL SUFFER MUCH MORE FROM INCREASED GAS TAXES THAN WILL RESIDENTS OF STATES LIKE CONNECTICUT AND RHODE ISLAND THE DISPARITIES AND THE REGRESSIVENESS OF THE GAS TAX WAS WHAT LED BILL CLINTON TO DENOUNCE IT AS BACKBREAKING IN HIS CAMPAIGN MANIFESTO HIS OPPOSITION TO THE TAX DID NOT HOWEVER STOP HIM FROM ORIGINALLY PROPOSING THE FAR MORE BACKBREAKING BTU TAX WHICH WOULD HAVE RAISED THE TAX ON GASOLINE BY ROUGHLY 8 CENTS A GALLON ANOTHER FREQUENTLY CITED JUSTIFICATION FOR RAISING TAXES ON FUEL IS THAT HIGHER PRICES AT THE TANK WILL DISCOURAGE CONSUMPTION AND THEREFORE REDUCE POLLUTION INDEED HIGHER GAS PRICES WILL REDUCE ENERGY CONSUMPTION BECAUSE INDIVIDUALS AND PRODUCERS WILL BE INCLINED TO ADOPT LESS ENERGYINTENSE ACTIVITIES BUT THIS SHOULD NOT BE VIEWED AS UNAMBIGUOUSLY GOOD ASIDE FROM ADDING A STIFLING BURDEN TO ECONOMIC ACTIVITY AND THUS HARMING THE GENERAL WELFARE AN INCREASE IN THE FEDERAL GAS TAX WOULD HAVE AN ADVERSE EFFECT ON STATE TAX REVENUESSTEMMING FROM THE DECLINE IN CONSUMPTION STATE GAS TAXES WHICH RANGE FROM 75 CENTS A GALLON IN GEORGIA TO 28 CENTS IN CONNECTICUT ARE A VITAL SOURCE OF REVENUE FOR INCREASINGLY CASHSTRAPPED STATE GOVERNMENTS A 1990 STUDY BY THE NATIONAL CONFERENCE OF STATE LEGISLATURES REVEALED THAT A 6CENT INCREASE IN THE GAS TAX WOULD REDUCE STATE TAX REVENUES BY NEARLY 32 BILLION OVER A FIVEYEAR PERIOD WITH TEXAS ALONE SLATED TO LOSE 240 MILLION ON THE CONSERVATION FRONT GAS TAX ADVOCATES FORGET THAT DIFFERENT CARS PRODUCE DIFFERENT LEVELS OF POLLUTION TAXING TODAY'S LOW EMISSION CARS AT THE SAME RATE AS THE BIG POLLUTERS OF THE 1970S MAKES LITTLE SENSE A MORE EFFECTIVE SOLUTION WOULD BE TO PROMOTE TAX INCENTIVES THAT EXPEDITE THE REPLACEMENT OF HIGH POLLUTION CARS WITH LOW POLLUTION CARS THE FATE OF THE GAS TAX WILL BE DETERMINED IN THE WEEKS TO COME WHEN MEMBERS OF THE HOUSE AND SENATE MEET IN CONFERENCE COMMITTEE TO IRON OUT THE DIFFERENCES IN THEIR TWO BUDGET BILLS BUT A GAS TAX INCREASE LOOKS INCREASINGLY LIKELY PARTICULARLY AFTER WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI ANNOUNCED IN A JUNE 21 SPEECH THAT HE COULD ACCEPT RAISING THE TAX BY AS MUCH AS 25 CENTS BUT MR ROSTENKOWSKI AND MANY OTHERS OVERLOOK THAT TO RAISE THE GAS TAX EVEN ONE SMALL CENT WOULD BE ONE BIG MISTAKE MR FOSTER IS CHIEF ECONOMIST AT THE TAX FOUNDATION IN WASHINGTON DC 9307070011 930707 THE END OF BANKING AS WE KNOW IT WIDENING REACH MERRILL LYNCH PUSHING INTO MANY NEW LINES EXPANDS BANK SERVICES LIGHTER REGULATION HELPS IT IN LENDING TO BUSINESS DEPOSITS UP FOR GRABS' BUT INTERNAL CONFLICTS ERUPT BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN BANKS BALKED AT GRANTING A 1 MILLION CREDIT LINE TO THE WHITNEY GROUP TWO YEARS AGO THE EXECUTIVESEARCH FIRM TAPPED AN UNLIKELY LENDER MERRILL LYNCH & CO NOW THE GIANT SECURITIES FIRM ALSO ARRANGES WHITNEY'S TERM LOANS MANAGES ITS RETIREMENT BUSINESS AND HAS SET UP MONEYMARKET ACCOUNTS FOR ITS EXECUTIVES THEY REALLY GRAB YOU WITH EVERYTHING SAYS GARY GOLDSTEIN WHITNEY'S PRESIDENT MERRILL HAS BECOME A TRADITIONAL BANKER TO US EVEN WHILE AMERICAN EXPRESS CO AND SEARS ROEBUCK & CO HAVE FLOPPED IN TRYING TO BUILD FINANCIAL SUPERMARKETS MERRILL HAS PLUNGED INTO NEARLY EVERY SECTOR OF FINANCIAL SERVICES AND HAS ACQUIRED THE ABILITY TO FILL MANY BANKING FUNCTIONS FOR COMPANIES AND INDIVIDUALS ITS SHEER DIVERSITY IS PAYING OFF AND SHOWING AFTER YEARS OF STRUGGLE THAT A FINANCIAL FIRM CAN THRIVE WITH A BROAD ARRAY OF PRODUCTS HOW BIG IS THE MERRILL MACHINE ITS CLIENT ASSETS RECENTLY TOPPED 500 BILLION24 OF ALL US FINANCIAL ASSETS FRESH OFF ITS 10TH CONSECUTIVE QUARTER OF STRONG EARNINGS INCLUDING PRETAX INCOME OF 590 MILLION IN THE 1993 FIRST PERIOD MERRILL HAS POSTED NET INCOME IN MANY RECENT QUARTERS ABOUT EQUAL TO THE COMBINED NET OF THE NEXT SIX LARGEST PUBLICLY TRADED SECURITIES FIRMS MERRILL IS THE NATION'S BIGGEST BROKERAGE FIRM WITH 12000 BROKERS AND 62 MILLION CLIENT ACCOUNTS IT IS THE SECONDLARGEST MUTUALFUND COMPANY OVERSEEING 115 BILLION IN FUND ASSETS AND THE LARGEST VENDOR OF MONEYMARKET FUNDS IT MANAGES 71 BILLION IN INDIVIDUAL RETIREMENT ACCOUNTS MORE THAN THE 102 LARGEST BANKS COMBINED IT IS THE TOP TRADER OF EXCHANGELISTED STOCKS IN INVESTMENT BANKING IT IS THE BIGGEST UNDERWRITER IT HELPS BRING TO MARKET NEARLY ONEFIFTH OF ALL NEW US STOCK AND BOND ISSUES EARNING 878 MILLION IN UNDERWRITING FEES SO FAR THIS YEAR IT HAS 13 BILLION OF INSURANCE ASSETS MAKING IT THE NATION'S 24THLARGEST INSURER AND SERVICES 5 BILLION OF HOMEMORTGAGE LOANS MERRILL'S RISE SHOWS HOW FINANCIALSERVICES COMPANIES ARE INFILTRATING MUCH OF THE BANKING BUSINESS MEANWHILE BANKS ARE JUMPING INTO TRADITIONAL BROKERAGEFIRM BUSINESSES MUTUAL FUNDS AND LIFE INSURANCE AS THEY STRIVE TO BUILD FEEBASED INCOME THIS COMES AS BANKS' BUSINESS LENDING IS BEING STUNTED PARTLY BY NEW CAPITAL RULES THAT THEY MUST MEET AND AS DEPOSITS DWINDLE AMID THE LOWEST INTEREST RATES IN A GENERATION INDEED THE DECLINING INFLUENCE OF THE BANKING INDUSTRY WORRIES WASHINGTON POLICY MAKERS WHO SEE THEIR ABILITY TO CONTROL THE MONEY SUPPLY AND THUS THE ECONOMY WANING SO FAR MERRILL'S PENETRATION INTO BANKING AND OTHER NONBROKERAGE BUSINESSES ISN'T DEEP BUT IT DOESN'T CARE IT USES SUCH BUSINESSES MOSTLY AS A LINK TO ITS CORE BROKERAGE OPERATIONS FOR INDIVIDUALS MERRILL OFFERS SECURED LOANS SUCH AS HOME MORTGAGES HOMEEQUITY LOANS AND MORTGAGE REFINANCINGS BUT IT DOESN'T PROVIDE CAR OR BOAT LOANS INSTEAD IT ENCOURAGES CASHMANAGEMENT AND BROKERAGEACCOUNT INVESTORS TO BORROW FOR ANY PURPOSE AGAINST THEIR ASSETS AT THE FIRM MERRILL'S MAIN INSURANCE LINE IS ANNUITIES MANAGED BY INVESTING IN SECURITIES MERRILL'S BUSINESSLENDING UNIT IS A VEHICLE FOR THE FIRM TO EVENTUALLY WIN THE JOB OF MANAGING THE FINANCIAL ASSETS INSURANCE OR SIMILAR ACTIVITIES OF A CLIENT COMPANY AND ITS EXECUTIVES WE'RE NOT LOOKING JUST TO HAVE LOAN ACCOUNTS SAYS JEROME P KENNEY MERRILL'S CORPORATESTRATEGY CHIEF WE'RE INTERESTED IN IT AS A WAY TO CAPTURE MONEY OF WEALTHY PEOPLE AND HAVE ACCESS TO THEIR WORKING CAPITAL AND THE SECURITIESRELATED SERVICES THEY NEED FOR EXAMPLE AVIATION METHODS INC A SMALL SAN FRANCISCO AVIATIONSERVICES COMPANY HAD LONG DONE ALL ITS BANKING INCLUDING RETIREMENTFUND INVESTING AT BANK OF AMERICA BUT AVIATION METHODS CHAIRMAN ROGER MCMULLIN FRUSTRATED WITH THE FREQUENT TURNOVER OF BANK OFFICERS TURNED TO MERRILL A YEAR AGO TO SERVE AS TRUSTEE FOR ITS RETIREMENT BUSINESS PLEASED WITH MERRILL IT EVEN MADE A PRESENTATION IN SPANISH TO AVIATION METHODS' HISPANIC WORKERS THE COMPANY HAD MERRILL HEDGE ITS FOREIGNCURRENCY EXPOSURE AT TWO OVERSEAS SUBSIDIARIES THEN AVIATION TAPPED MERRILL FOR A 15 MILLION REVOLVING CREDIT LINE AT A FLOATING RATE THAT HALVED ITS INTEREST EXPENSE FROM AN EARLIER FIXED RATE LATER SEVERAL AVIATION EXECUTIVES TOOK OUT INSURANCE THROUGH MERRILL NOW MERRILL HANDLES ALMOST EVERYTHING THAT WE DO HERE EXCEPT FOR THE PAYROLL MR MCMULLIN SAYS THEY HAVE ALL THE RESOURCES OF A BANK BUT THEY'RE NOT ALL TIED UP IN BUREAUCRATIC REGULATORY MATTERS SO THEY CAN RESPOND VERY QUICKLY NOT EVERY FORAY BEYOND SECURITIES HAS WORKED OUT FOR MERRILL IT HAS SOLD ITS LACKLUSTER REALESTATE BROKERAGE AND TELECOMMUNICATIONS OPERATIONS AND IT IS SLOWLY UNWINDING A 1 BILLION PORTFOLIO OF SMALLBUSINESS LOANS THAT LED TO A 200 MILLION WRITEDOWN LAST YEAR BETWEEN 1982 AND 1991 THAT UNIT MERRILL LYNCH INTERFUNDING LENT ROUGHLY 2 BILLION TO ABOUT 80 SMALL COMPANIES BUT AFTER TAKING BIG PROFITS ON THE BEST DEALS THE UNIT MADE A TOTAL OF ABOUT 550 MILLION IN THE 1980S MERRILL NOW IS STUCK WITH A MIXED BAG OF LOANS TO 50 COMPANIES SOME IN FINANCIAL TROUBLE MOREOVER MERRILL STILL FACES STIFF COMPETITION A MAJOR CONCERN IS PRIMERICA CORP'S CREATION OF A NEW BROKERAGEFIRM COLOSSUS THAT WILL BE CALLED SMITH BARNEY SHEARSON INC AND MERRILL HAS HAD ITS REGULATORY SCUFFLES INCLUDING PENDING SECURITIES AND EXCHANGE COMMISSION INVESTIGATIONS OF ITS JUNKBOND DESK ITS TRADING WITH A FAILED FLORIDA INSURER AND ITS NEW JERSEY MUNICIPALBOND DEALINGS BUT IT HAS HAD FEWER REGULATORY RUNINS THAN MANY SECURITIES FIRMS HAVE HAD AND IT SAYS IT QUICKLY BRINGS QUESTIONABLE MATTERS TO FEDERAL AUTHORITIES AT MERRILL THERE ARE NO TWO BITES OF THE APPLE CHAIRMAN DANIEL P TULLY SAYS THE PENDING FEDERAL INVESTIGATIONS WILL NOT THROW US OFF THE TRACK ONE BIT YET MERRILL HAS SOMETIMES BEEN THROWN OFF THE TRACK BY INTERNAL CONFLICTS ARISING FROM ITS ATTEMPTS TO SATISFY A DIVERSE GROUP OF CLIENTS LAST NOVEMBER ITS OWN BOND TRADERS AND SALESMEN FORCED IT TO ABANDON MARRIOTT CORP A TOP INVESTMENTBANKING CLIENT MERRILL HAD ADVISED MARRIOTT ON A CONTROVERSIAL PLAN TO SPLIT UP THE BIG LODGING AND REALESTATE COMPANY AND SADDLE THE WEAKER HALF WITH MOST OF ITS DEBT THE PLAN SHARPLY DEPRESSED MARRIOTT BOND PRICES ANGERING INSTITUTIONAL INVESTORS AND TRIGGERING A FIGHT BETWEEN MERRILL'S BONDTRADING AND INVESTMENTBANKING DEPARTMENTS ULTIMATELY MERRILL CAVED IN TO ITS TRADERS AND SALESMEN THAT WAS A VERY UNUSUAL TRANSACTION SAYS HERBERT M ALLISON JR ITS INVESTMENTBANKING CHIEF OVERALL HE SAYS CLIENTS ARE VERY WELL SERVED BY MERRILL'S BROAD CAPABILITIES AND OCCASIONAL PROBLEMS CLEARLY HAVEN'T CUT INTO MERRILL'S MARKET CLOUT ITS RECENT QUICK SALE OF 900 MILLION OF NEW TIME WARNER CONVERTIBLE SHARES DEMONSTRATED THE POWER OF ITS INVESTMENTBANKING AND SALES FORCES MERRILL DECIDED TO SELL 750 MILLION OF THE SHARES DURING A HASTILY CALLED 1030 PM EDT CONFERENCE CALL ON JUNE 14 BY 7 AM THE NEXT DAY MERRILL EXECUTIVES STARTED EXPLAINING THE DEAL TO ITS SALESMEN WHO BEGAN MANNING THE PHONES IN MERRILL'S FOOTBALLFIELDSIZED TRADING FLOOR BECAUSE OF THE FIXEDPRICE NATURE OF THE DEAL CALLED A LIQUID YIELD OPTION NOTE OR LYON MERRILL STOOD TO LOSE MILLIONS OF DOLLARS IF THE STOCK MARKET TANKED THAT DAY WE WERE AT RISK TO THE MARKET AND HAD TO GET IT DONE AS QUICKLY AS POSSIBLE SAYS DAVID H KOMANSKY MERRILL'S STOCK AND BOND CHIEF I WAS KIND OF NERVOUS BUT THE MARKET HELD AND BY ITS 4 PM CLOSING MERRILL HAD FOUND SO MANY BUYERS THAT IT ENDED UP SELLING 900 MILLION OF THE SHARES AN UNPRECEDENTED ONEDAY FEAT THAT WORKS OUT TO MORE THAN 100 MILLION AN HOUR WHEN MERRILL WHICH HAD LONG SERVED SMALL INVESTORS BEGAN BUILDING ITS INVESTMENTBANKING BUSINESS IN THE 1970S SOME EXPERTS DOUBTED THAT IT COULD CLIMB INTO THE TOP TIER WILLIAM A SCHREYER WHO HAS JUST RELINQUISHED THE POST OF CHAIRMAN AT MERRILL RECALLS A 1977 CAB RIDE WITH JOHN WHITEHEAD FORMER HEAD OF GOLDMAN SACHS & CO THE ELITE INVESTMENT BANK MR WHITEHEAD SUGGESTED THAT MERRILL SHOULD BE SATISFIED WITH BEING THE WORLD'S LARGEST COMANAGER OF STOCK UNDERWRITING DEALS DISTRIBUTING STOCK TO CLIENTS BUT NOT SERVING AS LEAD MANAGER OF OFFERINGS SINCE THEN MERRILL HAS SURPASSED EVEN GOLDMAN IN THE STOCKUNDERWRITING RANKINGS WHEN MR SCHREYER MET UP WITH MR WHITEHEAD EARLIER THIS YEAR HE SAYS THE FORMER GOLDMAN CHIEF ASKED AREN'T YOU GLAD YOU DIDN'T LISTEN TO ME FOR ALL ITS INVESTMENTBANKING PROWESS MERRILL NEVER LETS ITS FOCUS VEER FAR FROM THE INDIVIDUAL INVESTOR ITS SIMPLE STRATEGY TO SNARE ALL OF AN INVESTOR'S FINANCIAL PORTFOLIO SO THE FIRM DOESN'T HAVE BROKERS THEY ARE FINANCIAL CONSULTANTS CHERYLL HUDAK AN ARTSUPPLY MERCHANT IN MCLEAN VA SAYS SHE USED TO DO ALL HER FINANCIAL BUSINESS THROUGH FIRST UNION CORP THE REGIONAL BANK BUT AFTER OPENING A BROKERAGE ACCOUNT AT MERRILL LAST YEAR WITH HER 65000 SAVINGS SHE RELIES ON THE FIRM FOR NEARLY EVERYTHING IN NOVEMBER SHE REFINANCED HER 125000 MORTGAGE THROUGH MERRILL IN JUST FOUR WEEKS THEY'RE A LOT MORE EFFICIENT THAN THE S&L WHERE SHE GOT HER ORIGINAL MORTGAGE SHE SAYS ALL SHE DOES AT HER BANK IS KEEP A CHECKING ACCOUNT MRS HUDAK HAS PLENTY OF COMPANY LAYNE COLMAN A FRANKLIN MICH REALESTATE BROKER WHO SAYS SHE HAS A MULTIMILLIONDOLLAR BROKERAGE ACCOUNT AT MERRILL PLANS TO USE THE FIRM FOR ESTATETAX PLANNING AND FOR REFINANCING A HOME MORTGAGE IN SCOTTSDALE ARIZ ANYTHING YOU WANT TO DO THERE YOU CAN SHE SAYS YET SOME SMALL INVESTORS GRUMBLE ABOUT THE NEW BROKERAGEACCOUNT CHARGES RANGING FROM AN ANNUAL 40 MAINTENANCE FEE TO CHARGES FOR OBTAINING STOCK CERTIFICATES LOOK AT THEIR QUARTERLY PROFITS DO THEY REALLY NEED MY 40 ASKS RICHARD BUCK A PLEASANT RIDGE MICH INVESTOR WHO RECENTLY MOVED HIS ACCOUNT TO DISCOUNT BROKER QUICK & REILLY GROUP INC AFTER 20 YEARS AT MERRILL MERRILL SEES THE FEES AS JUSTIFIED BECAUSE AMONG OTHER THINGS IT ACTS AS A GLOBAL FINANCIAL ADVISER SAYS JOHN L STEFFENS ITS BROKERAGE CHIEF IF I LOOK AT THE FEES THAT BANKS CHARGE OUR FEES ARE CHEAP THESE DAYS MERRILL COVERS HALF ITS FIXED COSTS THROUGH RECURRING FEES WHICH ARE FAR LESS DEPENDENT ON STOCKMARKET MOVES THIS IS PARTLY BECAUSE OF ITS CASH MANAGEMENT ACCOUNT INTRODUCED 16 YEARS AGO THE CMA COMBINES ACCESS TO MONEYMARKET FUNDS WITH CHECKWRITING CREDIT CARDS AND STOCK AND BOND TRADING HEAVILY PROMOTED AT A TIME WHEN MONEYFUND RATES TOPPED 10 AND BANKS COULD PAY ONLY 5 1/2 THE ACCOUNT BECAME MERRILL'S PRIME BAIT FOR LANDING NEW CUSTOMERS THOUGH CMA GROWTH RECENTLY HAS SLOWED CMA CUSTOMERS STILL ACCOUNT FOR MORE THAN HALF OF MERRILL'S 500 BILLION IN ASSETS THE CMA WAS A WATERSHED EVENT SAYS JOSEPH GRANO A FORMER MERRILL EXECUTIVE WHO NOW HEADS BROKERAGE OPERATIONS AT PAINEWEBBER GROUP INC IT CAPTURED CASH FLOW AND THAT PROVIDED THE CATALYST FOR ASSET GATHERING IT WAS ONE OF THE SMARTEST THINGS MERRILL EVER DID MERRILL ALSO HAS THRIVED BY DEVELOPING A CULTURE FAR DIFFERENT FROM THAT OF MOST WALL STREET FIRMS IT RARELY HIRES STARS FROM RIVALS PREFERRING TO TRAIN ITS OWN BROKERS AND INVESTMENT BANKERS EMPLOYEES MUST SUBLIMATE THEIR EGOS TO MOTHER MERRILL MERRILL EXECUTIVES OFTEN COMPARE THE FIRM TO THE PENN STATE FOOTBALL TEAM WHICH DOESN'T PUT NAMES ON ITS JERSEYS AND WHOSE COACH JOE PATERNO IS AN OLD FRIEND OF MR SCHREYER'S MERRILL'S CULTURE HELPED IT PROSPER WHERE THE RIVAL FINANCIAL SUPERMARKETS STUMBLED MOST OF THE SUPERMARKETS INCLUDING AMERICAN EXPRESS SEARS AND PRUDENTIAL INSURANCE CO OF AMERICA ARE RUN BY NONBROKERAGE EXECUTIVES MERRILL DIDN'T HAVE THE CORPORATE CULTURE A LA AMERICAN EXPRESS WHICH SAID LET'S JUST BUY US A LITTLE PIECE OF WALL STREET AND MAKE IT ALL HAPPEN' SAYS JUNIUS PEAKE A FORMER SECURITIES EXECUTIVE AND NOW A FINANCE PROFESSOR AT THE UNIVERSITY OF NORTHERN COLORADO WHEN MERRILL LAUNCHED BUSINESS FINANCIAL SERVICES ITS BUSINESSLENDING UNIT IN THE MID1980S IT TAPPED J ARTHUR URCIUOLI A VETERAN MERRILL EXECUTIVE WHO DIDN'T FEEL PRESSURE TO CRANK UP THE BUSINESS AS QUICKLY AS AN OUTSIDER MIGHT HAVE EVEN WITH SOLID GROWTH THE PAST COUPLE OF YEARS THE UNIT STILL HAS JUST 900 MILLION IN LOAN COMMITMENTS MUCH LESS THAN STAR BANC CORP A REGIONAL BANK IN CINCINNATI IF WE WERE OVERAGGRESSIVE IN LENDING MONEY IN THE EARLY YEARS FOLLOWED BY A DEBACLE WE WOULD HAVE BEEN OUT OF THIS BUSINESS MR URCIUOLI SAYS SO WE TOOK A VERY CONSERVATIVE METHODICAL APPROACH AND NOW THAT WE'RE BIGGER WE HAVE GOTTEN A LITTLE MORE AGGRESSIVE YET ONLY A FEW YEARS AGO MERRILL WAS A WALL STREET LAUGHINGSTOCK SADDLED WITH BLOATED COSTS AND POOR INVESTMENTS IT SANK DEEP INTO THE RED TAKING A 470 MILLION CHARGE IN 1989 PARTLY FOR FLOOR AFTER FLOOR OF UNUSED SPACE IN ITS HEADQUARTERS IN NEW YORK'S WORLD FINANCIAL CENTER ANALYSTS WERE CONVINCED THAT MERRILL WOULD FOREVER DISAPPOINT THEM LIKE A GIFTED BALLPLAYER WHO NEVER FULFILLS A SCOUT'S GLOWING REPORTS BUT THEN MERRILL WENT ON A COSTCUTTING CRUSADE IN A SYMBOLIC MOVE MR TULLY STALKED THE HALLS OF ITS HEADQUARTERS SLAPPING RED DOTS ON ALL EXCESS EQUIPMENT INCLUDING STOCKQUOTE MACHINES DESKS AND TELEPHONES EMPLOYEES HAD 24 HOURS TO PROVE THE EQUIPMENT WAS NEEDED OR IT WAS GONE PEOPLE HID FROM ME MR TULLY JOKES THEY WERE AFRAID I'D PUT A RED DOT ON THEIR FOREHEAD MERRILL MELDED 14 REGIONAL OPERATING CENTERS INTO TWO AND DISMISSED ABOUT 20 OF ITS EMPLOYEES IN LESS THAN FOUR YEARS ITS WORK FORCE NOW TOTALS 40200 THEN IT STARTED CUTTING COMPENSATION ITS NO 1 EXPENSE THE BIGGEST MOVE A PAY PLAN CONCOCTED BY HERBERT ALLISON THEN THE CHIEF FINANCIAL OFFICER THAT TIED EMPLOYEE BONUSES TO RETURNONEQUITY TARGETS AT FIRST EMPLOYEES GROUSED THEIR 1990 BONUS CHECKS WERE PALTRY BECAUSE MERRILL'S ROE WAS A MEAGER 58 AND EMPLOYEES DERIDED THE CHECKS AS HERBIES BUT WHEN MERRILL'S ROE HIT 21 IN 1991 AND BONUSES SOARED THE CHECKS WERE HAILED AS MR ALLISONS OR SIR HERBERTS THERE WERE OTHER COSTSAVING STEPS BROKERAGE ANALYSTS USED TO MEET MERRILL EXECUTIVES IN PLUSH DINING ROOMS OVER LUNCH OF AMONG OTHER DELICACIES LAKE MICHIGAN WHITEFISH NOW THEY SLAP TOGETHER THEIR OWN DELISTYLE SANDWICHES THE MEASURES ENDED UP SAVING ABOUT 400 MILLION A YEAR MERRILL SAYS AND IT WASN'T THROUGH IN THIS YEAR'S FIRST QUARTER IT TOOK A ONETIME PRETAX CHARGE OF 103 MILLION STEMMING FROM ITS DECISION TO SUBLET SPACE IN THE WORLD FINANCIAL CENTER THAT WILL SLASH MERRILL'S ANNUAL OCCUPANCY COST AS MUCH AS 20 MILLION A YEAR SEVERAL BROKERAGE ANALYSTS STILL HAVE BUY RATINGS ON MERRILL'S STOCK DESPITE A NEARLY FIVEFOLD RUNUP TO 79875 A SHARE YESTERDAY FROM ITS 1990 LOW WILLIAM HARTMAN A JP MORGAN SECURITIES INC ANALYST RECENTLY INCREASED HIS 1993 EARNINGS FORECAST FOR MERRILL TO 9 A SHARE IN 1992 MERRILL EARNED 894 MILLION OR 784 A SHARE BECAUSE OF THE FAVORABLE ENVIRONMENT FOR BROKERAGE FIRMS HE CALLS MERRILL AN AWESOME FRANCHISE MERRILL'S EXECUTIVES VOW NOT TO SQUANDER ITS LEAD IT IS BEEFING UP ITS INTERNATIONAL FOCUS UNDER WINTHROP H SMITH JR WHOSE FATHER RAN MERRILL IN THE 1950S AND '60S IT WANTS TO SMOOTH OUT EARNINGS BUMPS BY FURTHER REDUCING ITS DEPENDENCE ON TRADING COMMISSIONS THE HIGHLY CYCLICAL COMMISSIONS ONCE BROUGHT IN MORE THAN HALF ITS REVENUE THEY NOW ACCOUNT FOR ABOUT 27 BY THE END OF THE DECADE MERRILL AIMS TO COVER ALL ITS FIXED COSTS WITH FEEBASED REVENUE KEEPING IT PROFITABLE IN NEARLY ANY MARKET CYCLE ABOUT THE ONLY THING THAT CAN DERAIL MERRILL ITS EXECUTIVES SAY IS ARROGANCE MEANWHILE MR STEFFENS THE BROKERAGE CHIEF PREDICTS THAT MERRILL WILL HIT 1 TRILLION IN CLIENT ASSETS IN THIS DECADE MR ALLISON THE INVESTMENTBANKING EXECUTIVE SAYS MERRILL CAN BE THE MOST IMPORTANT FINANCIAL INTERMEDIARY IN THE WORLD BY 2000 AND CHAIRMAN TULLY SAYS HE OFTEN TELLS EMPLOYEES THANK GOD YOU DON'T HAVE TO COMPETE WITH MERRILL LYNCH 9307070009 930707 TUESDAY'S MARKETS STOCKS DROP 3404 ON FEAR OF INFLATION BONDS PRICES DECLINE DUE TO HIGHER RATES DOLLAR GAINS GROUND BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL RENEWED INFLATION FEARS SENT STOCK AND BOND PRICES LOWER THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE TUMBLED 3404 POINTS TO 344993 STANDARD & POOR'S 500STOCK INDEX FELL 441 TO 44143 AND THE NASDAQ COMPOSITE INDEX SANK 227 TO 70222 STOCK PRICES WERE HIT BY INFLATION WORRIES ON SEVERAL FRONTS CONTINUED FLOODING IN THE MIDWEST DROVE GRAIN PRICES HIGHER AND RAISED THE PROSPECT THAT THE HIGH PRICES WILL LINGER OIL PRICES CLIMBED SLAMMING AIRLINE AND OTHER TRANSPORTATION ISSUES WITH THE DOW JONES TRANSPORATION AVERAGE PLUNGING 2416 TO 152807 GOLD PRICES SOARED A SIGN OF CONCERN ABOUT INFLATION WITH GOLD FOR AUGUST DELIVERY GAINING 640 TO 39310 ON NEW YORK'S COMMODITY EXCHANGE THE INFLATION FEARS ALSO ROILED THE BOND MARKET DRIVING UP INTEREST RATES AND FURTHER PRESSURING STOCK PRICES TODAY STOCKS WERE HIT NOT ONLY BY HIGHER LONGTERM INTEREST RATES AND HIGHER COMMODITIES PRICES BUT ALSO SHORTTERM RATES MOVED HIGHER SAID WALTER C REVIS MARKET ANALYST AT HAMILTON INVESTMENTS IN CHICAGO HISTORICALLY SHORTTERM RATES ARE MORE SIGNIFICANT AS FAR AS STOCK PRICES ARE CONCERNED BOND PRICES STARTED THE DAY WITH STRONG GAINS BUT REVERSED COURSE AFTER TRADERS FOCUSED ON THE NEW INFLATION CONCERNS DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS INC SAID BOND TRADERS AT FIRST SHRUGGED OFF RISING GRAIN PRICES AS A TEMPORARY WEATHERRELATED PHENONMENON BUT NOW IT LOOKS LIKE GRAIN PRICES WILL BE PERMANENTLY HIGHER FOR THE REST OF YEAR HE SAID MR SHULMAN SAID THE JUMP IN GRAIN PRICES WILL OFFSET NEXT WEEK'S REPORTS ON JUNE CONSUMER AND WHOLESALE PRICES WHICH ARE EXPECTED TO BE UPBEAT THOSE NUMBERS AREN'T GOING TO MATTER NOW HE SAID THE RISE IN GRAIN PRICES WILL TAKE AWAY ANY UPLIFT THE BOND MARKET MIGHT HAVE GOTTEN FROM THE GOOD NUMBERS MR SHULMAN ADDED THAT BOND PRICES MAY HAVE SUFFERED FROM FEARS THAT LEADERS OF THE GROUP OF SEVEN INDUSTRIALIZED NATIONS MEETING IN TOKYO WILL SUPPORT HIGHER INFLATION AS AN AVENUE TO ECONOMIC GROWTH THE G7 MAY GO FOR GROWTH HE SAID THEY MAY BE TEMPTED TO INTRODUCE A LITTLE INFLATION TO GET A LITTLE GROWTH WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 025 TO 10483 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2333 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1128 ISSUES FELL AND 856 ROSE BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL NEARLY A QUARTER OF A POINT OR NEARLY 250 FOR EACH 1000 FACE AMOUNT TO YIELD 668 THE DOLLAR ROSE IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17050 MARKS AND 10880 YEN COMPARED WITH 16965 MARKS AND 10858 YEN FRIDAY 9307070008 930707 FORM + FUNCTION BY JOHN PIERSON PLANNERS SAY OFFICE WORKERS NEED SPACE TO GET TOGETHER AND SPACE TO BE ALONE HOW CAN PRIVACY BE PROVIDED DOUGLAS BALL LIKES TO WORK ALONE THE SENNEVILLE QUEBEC DESIGNER MAKES A COMPUTER WORKSTATION THAT'S LIKE A COCKPIT WHERE PEOPLE WILL SIT IN SUBDUED LIGHT AND GAZE AT THE MONITOR LIKE THE WARM GLOW OF A FIREPLACE MR BALL SAYS HIS WOOD AND FABRIC CAPSULE 7 FEET BY 4 FEET BY 4 1/2 FEET HIGH IS SO PRIVATE THAT AN ALARM CLOCK REMINDS HIM OF LUNCHTIME GILBERT INTERNATIONAL A MANUFACTURER IN FORT WORTH TEXAS HOPES TO BRING THE CAPSULE OUT NEXT YEAR BOBBY CADWALLADER A GREENWICH CONN FURNITURE CONSULTANT WORKING WITH GILBERT PREDICTS THE BIGGEST MARKET WILL BE EXECUTIVES AND HIGHPOWERED CREATIVE PEOPLE A LESS RADICAL APPROACH TO PRIVACY COMES FROM STEELCASE WHICH IS TESTING ITS PERSONAL HARBOR WITH FOUR LARGE COMPANIES MADE OF ACOUSTICAL PANELING ON A STEEL FRAME PERSONAL HARBOR MEASURES 6 FEET BY 8 FEET WITH GAPS AT THE FLOOR AND CEILING FOR AIR TO CIRCULATE THE SPACE CAN HOLD A DESK CHAIR AND OTHER FURNISHINGS ANOTHER BIG MANUFACTURER HERMAN MILLER INC HAS TRANSLUCENT PLASTIC SCREENS TO PLACE AROUND EXISTING WORKSTATIONS STILL ANOTHER HAWORTH MAKES A TRIANGULAR CORNER CANOPY OUT OF METAL WOOD AND ACOUSTICAL TILE HERMAN MILLER SPOKESMAN JOHN BERRY SAYS SCREENS ARE CHEAPER AND MORE FLEXIBLE THAN CAPSULES OR SMALL OFFICES WE DON'T SEE A HUGE DEMAND FOR COCOONS HE SAYS DO AMERICANS PREFER TO LIVE ALONE OR IN COMMUNITIES THE OLD QUESTION IS RAISED ANEW THIS TIME BY THE SUN SOLAR ENERGY IS SPREADING FROM SINGLE HOMES TO WHOLE COMMUNITIES PHOTOVOLTAIC COLLECTORS ARE SPROUTING ON A LOT OF INDIVIDUAL ROOFS BUT THE SOLAR INDUSTRY ALSO IS TIPTOEING TOWARD CENTRAL SOLAR SYSTEMS THE JOHN F LONG HOMES A PHOENIX SUBDIVISION OF 24 HOUSES BUILT IN 1986 WAS A PIONEER IN CENTRAL SOLAR SYSTEMS PUBLIC SERVICE OF COLORADO HAS OFFERED TO REPLACE ITS FIVEMILE TRANSMISSION LINE TO WHITE PINE WHICH REQUIRES HEAVY MAINTENANCE IN WINTER WITH A CENTRAL SOLAR SYSTEM FOR THE TOWN'S 34 HOMES AND IN PRESTON CONN TIM AND DONNA BOWLES ARE LEANING TOWARD USING ONE SOLAR GENERATOR TO SERVE A 21HOME COMMUNITY THEY'RE PLANNING THE ARGUMENTS FOR COMMUNITY SYSTEMS ARE COMPELLING ECONOMIES OF SCALE IN CONSTRUCTION MAINTENANCE AND SUPPLEMENTARY POWER PURCHASES IF THE SOLAR COMMUNITY IS ALSO ATTACHED TO THE UTILITY GRID SAYS STEVEN STRONG PRESIDENT OF SOLAR DESIGN ASSOCIATES HARVARD MASS A STANDALONE SOLAR SYSTEM GETS BACKUP POWER FOR PEAK DEMAND OR A RUN OF CLOUDY DAYS FROM BATTERIES A GENERATOR OR ADDITIONAL SOLAR COLLECTORS YET A CENTRAL COLLECTOR TAKES UP VALUABLE LAND SAYS HOWARD WENGER A PLANNER WITH PACIFIC GAS & ELECTRIC A CENTRAL SYSTEM ALSO NEEDS HIGHERVOLTAGE EQUIPMENT AND TRANSMISSION LINES SAYS JOHN PRESCOTT A PLANNER WITH IDAHO POWER AND A STANDALONE SETUP CAN CAUSE ARGUMENTS ABOUT WHO IS GOING TO PAY HOW MUCH FOR THE SYSTEM OR LATER FOR THE ADDED CAPACITY REQUIRED BY SAY ONE PERSON'S NEW ELECTRIC POTTING KILN RON KENEDI A VICE PRESIDENT WITH PHOTOCOMM SCOTTSDALE ARIZ A DISTRIBUTOR OF SOLAR PRODUCTS SAYS A CENTRAL SOLAR SYSTEM REQUIRES A TRIBAL SOCIAL STRUCTURE WHICH IS NOT THE AMERICAN WAY SLEIPNER THE HORSE FROM NORSE MYTHOLOGY WAS A FARRIER'S DREAM OR NIGHTMARE HE HAD EIGHT LEGS TO SHOE TODAY'S HORSY SET HAS SIMILARLY MIXED FEELINGS ABOUT THE LAYERED HORSESHOES MADE BY A COMPANY THAT HAS BORROWED SLEIPNER'S NAME THE VAST MAJORITY OF THE COUNTRY'S 10 MILLION HORSES ARE SHOD WITH ONEPIECE SHOES OF STEEL OR ALUMINUM BUT SLYPNER ATHLETIC HORSESHOES CLAREMONT NH MAKES A TWOPIECE SHOE A STAINLESSSTEEL BRACKET NAILED TO THE HOOF HOLDS A REPLACEABLE URETHANE SOLE SLYPNER SAYS THE URETHANE CUTS SHOCK AS MUCH AS 80 AND MEANS FEWER INJURIES FOR THE HORSE THE SLYPNER SHOE INVENTED IN DENMARK JOINS A FIELD OF EXOTIC HORSESHOES NONE OF WHICH HAVE SUCCEEDED IN BREAKING INTO GENERAL USE THERE ARE PLASTIC GLUEON SHOES THAT NEED NO NAILS SNEAKERS OF URETHANE AND LEATHER THAT BUCKLE ON THE HOOF SHOES WITH PLASTIC SPRINGS AND SUPERLIGHT TITANIUM SHOES FARRIERS ARE SKEPTICAL ABOUT THESE SHOES TOM WILSON A FARRIER IN THOMASTON CONN SAYS THERE'S NO WAY THE HALFINCH OF SLYPNER URETHANE CAN ABSORB 80 OF THE FORCE FROM THE HOOF OF A 1200POUND HORSE JIM FARRAND A BRIDGEWATER VT FARRIER SAYS THAT UNLIKE A ONEPIECE SHOE SLYPNER'S CAN'T BE BENT FOR A CUSTOM FIT AND MATTHEW MACKAYSMITH A VETERINARIAN IN WHITE POST VA SAYS THE SLYPNER SHOES TEND TO COME OFF IN HUNTING AND TRAIL RIDING SLYPNER'S GENERAL MANAGER ADAM BRISTOL STANDS BY THE 80 FIGURE FOR SHOCK REDUCTION HE SAYS THAT SLYPNER FITS A MAJORITY OF HORSES AND THAT A HORSE WON'T LOSE ITS SLYPNER SHOES IF THE FARRIER KNOWS WHAT HE'S DOING 9307070005 930707 INTERNATIONAL RUSSIA SEEKS MORE COOPERATION FROM WEST AS G7 SUMMIT BEGINS AID ALTHOUGH WELCOME IS DESCRIBED AS LIMITED BY PROTECTIONIST' RULES BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW AS THE TOKYO SUMMIT OF INDUSTRIAL NATIONS GETS UNDER WAY RUSSIAN VICE PREMIER ALEXANDER SHOKHIN FINDS HIMSELF IN AN UNCOMFORTABLE POSITION AS RUSSIA'S POINT MAN FOR INTERNATIONAL LOANS AND ASSISTANCE MR SHOKHIN IS GRATEFUL FOR THE 28 BILLION AID PACKAGE TO RUSSIA THAT THE GROUP OF SEVEN INDUSTRIALIZED COUNTRIES IS HELPING TO COORDINATE BUT HE FEELS THAT MUCH OF THE PLEDGED ASSISTANCE WON'T BE OF USE TO RUSSIA SOON THE ASSISTANCE HE NOTES WITH FRUSTRATION IS MOSTLY LIMITED TO AREAS THAT BENEFIT THE WEST AND JAPAN AS MUCH AS THEY DO RUSSIA HE TICKS OFF COMPONENTS OF THE PACKAGE TO MAKE HIS POINT THERE IS 10 BILLION IN BILATERAL EXPORT CREDITS AND GUARANTEES THAT HELP WESTERN COMPANIES SELL TO RUSSIA THERE IS 3 BILLION IN CREDITS FOR RUSSIA'S ENERGY SECTOR THAT WILL SUPPORT US MAKERS OF OILANDGAS EQUIPMENT AND THERE ARE GRAINEXPORT CREDITS THAT BENEFIT US FARMERS AND SHIPPING COMPANIES AS MUCH AS THEY DO THE RUSSIANS A DIFFERENT LANGUAGE SHOULD BE USED TO NEGOTIATE THESE ISSUES MR SHOKHIN SAID IN AN INTERVIEW I'D LIKE TO HEAR LESS TALK ABOUT AID AND MORE ABOUT COOPERATION MR SHOKHIN SAYS THAT WHILE THE WEST TALKS OF AIDING RUSSIA IT IS IMPOSING WHAT HE DESCRIBES AS PROTECTIONIST MEASURES THAT BLOCK RUSSIAN EXPORTS SUCH RESTRICTIONS PREVENT MOSCOW FROM EARNING MUCHNEEDED HARD CURRENCY AND KEEP IT DEPENDENT ON FURTHER FINANCIAL AID HE SAYS IN BRIEFING BORIS YELTSIN FOR HIS MEETINGS IN TOKYO WITH G7 LEADERS THE 42YEAROLD MR SHOKHIN SAYS HE URGED RUSSIA'S PRESIDENT TO DEMAND AN END TO SUCH RESTRICTIONS WE HAVE TO GET RID OF DISCRIMINATORY BARRIERS HE SAYS PART OF THE PROBLEM IS THAT DESPITE OUR REFORMS THE WEST STILL VIEWS RUSSIA AS A COMMUNIST POWER WITH A STATERUN ECONOMY SAYS MR SHOKHIN OUR MAIN TASK IN TOKYO WILL BE TO MAKE THE WEST RECOGNIZE US AS A DEMOCRATIC COUNTRY WITH A FREEMARKET ECONOMY RUSSIA HAS BEEN ACCUSED OF DUMPING A NUMBER OF EXPORTED GOODS EVERYTHING FROM ALUMINUM TO STEEL TO FISH TO ENRICHED URANIUM IN MANY CASES STIFF RETALIATORY DUTIES HAVE BEEN IMPOSED MR SHOKHIN BELIEVES THAT AT LEAST SOME OF THE MEASURES ARE MEANT TO WEAKEN RUSSIAN INDUSTRY WE CAN'T HELP BUT CONCLUDE THAT THE WEST IS AFRAID OF RUSSIA'S ECONOMIC POTENTIAL AND AFRAID OF RUSSIA AS A RIVAL HE SAYS MR SHOKHIN CONCEDES THAT SOME CHARGES OF DUMPING MAY HAVE BEEN ACCURATE LAST YEAR WHEN RUSSIA LOST CONTROL OF EXPORTS OF MANY KEY RAW MATERIALS UNAUTHORIZED PARTIES WERE EAGER TO SELL THE RAW MATERIALS ABROAD EVEN AT PRICES WELL BELOW MARKET LEVELS TO CITE ONE EXAMPLE RUSSIA SOMEHOW LOST TRACK OF EIGHT MILLION TONS OF OIL IT WAS TRYING TO SHIP TO UKRAINE IN RECENT MONTHS MR SHOKHIN SAYS RUSSIA HAS REGAINED CONTROL OVER ITS EXPORTS AND IS IMPOSING DUTIES ON EXPORTS FOR WHICH DOMESTIC PRICES ARE BELOW WORLD PRICES IN THIS CLIMATE MR SHOKHIN SAYS HE WAS SURPRISED WHEN THE NEW US AMBASSADOR TO RUSSIA THOMAS PICKERING ADVISED THE COUNTRY TO LOWER DUTIES ON SNICKERS BARS AND OTHER PRODUCTS IMPORTED BY MARS INC THE US CONFECTIONER WHY SHOULD WE WHEN WE HAVE SIMILAR PRODUCTS MR SHOKHIN ASKS AND IF WE AGREE TO DO SO WE'D LIKE TO SEE SIMILAR STEPS ON THE PART OF THE US IT ISN'T JUST RUSSIA THAT SEES PROTECTIONISM AT WORK RUSSIA'S POSITION HAS A LOT OF VALIDITY SAYS CHARLES BLITZER CHIEF ECONOMIST AT THE WORLD BANK'S MOSCOW OFFICE A NUMBER OF THE RESTRICTIONS AGAINST RUSSIA'S EXPORTS ARE CLEARLY AIMED AT PROTECTING INDUSTRIES IN G7 COUNTRIES BESIDES PROTECTIONIST MEASURES THE G7 HAS LEANED ON RUSSIA TO STOP EXPORTS OF CERTAIN SENSITIVE TECHNOLOGIES A WASHINGTONMOSCOW DISPUTE OVER RUSSIA'S AGREEMENT TO SELL INDIA 350 MILLION OF LIQUID FUEL ROCKET TECHNOLOGY FORCED PREMIER VIKTOR CHERNOMYRDIN TO SCRAP A PLANNED VISIT TO THE US LAST MONTH MR SHOKHIN SAYS RUSSIA PLANS TO PROCEED WITH THE SALE AND ADDS THAT RUSSIANINDIAN COOPERATION WILL BE LIMITED TO PEACEFUL PURPOSES MR SHOKHIN IS MORE WORRIED ABOUT THE WEST'S ATTEMPT TO BLOCK RUSSIA FROM EXPORTING CATEGORY ONE TECHNOLOGY UNDER THE MISSILE TECHNOLOGY CONTROL REGIME WE NEED THE WEST TO MAKE AN EXCLUSION FOR RUSSIA AND ITS PARTNERS IN THE EXSOVIET UNION HE SAYS OTHERWISE PART OF RUSSIA'S AEROSPACE INDUSTRY WILL BE DESTROYED IN ADDITION TO OPENING MARKETS THE BEST ASSISTANCE THE WEST CAN OFFER IS FURTHER DEBT RELIEF MR SHOKHIN SAYS THE SOCALLED PARIS CLUB OF GOVERNMENT LENDERS HAS ALREADY AGREED TO RESCHEDULE 15 BILLION OF FOREIGN DEBT BUILT UP BEFORE THE DEMISE OF THE SOVIET UNION THAT RESCHEDULED DEBT IS IN ADDITION TO THE 28 BILLION AID PACKAGE MR SHOKHIN SAYS RUSSIA WILL NEED TO RESCHEDULE ANOTHER 15 BILLION IN 1994 IT FACES 16 BILLION IN DEBTSERVICE PAYMENTS NEXT YEAR THAT IT CAN'T AFFORD HE SAYS THE COUNTRY'S BALANCEOFPAYMENTS GAP FOR THIS YEAR HE NOTES IS BETWEEN 40 BILLION AND 43 BILLION ABOUT EQUAL TO THE G7 ASSISTANCE PACKAGE WHICH IS MEANT TO COVER BOTH THIS YEAR AND NEXT PLUS THE DEBT RESCHEDULING PARTS OF THE 28 BILLION AID PACKAGE WON'T EVEN BE USEABLE MR SHOKHIN SAYS THE G7 IS PLEDGING 6 BILLION FOR A RUBLESTABILIZATION FUND THAT CAN'T BE PUT INTO EFFECT THIS YEAR HE SAYS NOR CAN RUSSIA AFFORD TO BORROW MUCH FROM THE 10 BILLION PLEDGED IN BILATERAL EXPORT CREDITS ON THE OTHER HAND RUSSIA IS EAGERLY ANTICIPATING G7 FUNDING FOR A PRIVATIZATION FUND THAT WOULD HELP TO RESTRUCTURE MANY OF RUSSIA'S NEWLY PRIVATIZED COMPANIES RUSSIA WANTS 4 BILLION IT WILL BE LUCKY IF IT GETS 2 BILLION 9307070004 930707 BUSINESS BRIEF WR GRACE BACKS BID BY FOODMAKER GROUP FOR RESTAURANT FIRM SAN DIEGO FOODMAKER INC AND TWO PARTNERS SAID THEIR 235 MILLION OFFER TO ACQUIRE RESTAURANT ENTERPRISES GROUP INC RECEIVED THE BACKING OF RESTAURANT ENTERPRISES' MAJORITY SHAREHOLDER THE SHAREHOLDER WR GRACE & CO LAST MONTH SUBMITTED ITS OWN PLAN FOR CLOSELY HELD RESTAURANT ENTERPRISES THE FOODMAKER AGREEMENT RECONCILES COMPETING BIDS WHICH HAD BEEN SUBMITTED SEPARATELY BY FOODMAKER AND GRACE SAID RESTAURANT ENTERPRISES BASED IN IRVINE CALIF FOODMAKER'S PARTNERS ARE INVESTOR LEON BLACK'S APOLLO ADVISORS LP AND A PARTNERSHIP HEADED BY INVESTOR LEONARD GREEN THE AGREEMENT APPROVED BY WR GRACE WAS ESSENTIALLY THE SAME OFFER THE GROUP MADE IN MAY A FOODMAKER SPOKESWOMAN SAID 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 THE PLAN REQUIRES RESTAURANT ENTERPRISES TO FILE A PREPACKAGED CHAPTER 11 PETITION THE COMPANY OPERATES MORE THAN 550 RESTAURANTS IN 24 STATES INCLUDING THE CARROWS COCO'S AND EL TORITO CHAINS FOODMAKER IS THE OWNER OR FRANCHISER OF 1165 JACK IN THE BOX RESTAURANTS 9307070003 930707 ECONOMY VEHICLE SALES ROSE 67 IN LATE JUNE FINISHING STRONGEST FIRST HALF SINCE '90 BY ROBERT L SIMISON STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT US SALES OF NORTH AMERICANMADE VEHICLES POSTED ANOTHER STRONG GAIN IN LATE JUNE CONCLUDING THE INDUSTRY'S STRONGEST FIRST HALF SINCE 1990 IN THE FINAL THIRD OF JUNE DOMESTIC CAR AND TRUCK SALES ROSE 67 TO 481157 VEHICLES THAT AMOUNTED TO A SEASONALLY ADJUSTED ANNUAL SELLING PACE OF 128 MILLION VEHICLES UP 10 FROM THE YEAREARLIER 116 MILLIONUNIT RATE THE SALES PACE FOR CARS ALONE EQUIVALENT TO 77 MILLION UNITS A YEAR WAS THE HIGHEST SINCE DECEMBER 1990 VEHICLE SALES FOR ALL OF JUNE INCLUDING IMPORTS ROSE TO 1356261 CARS AND TRUCKS UP 62 FROM A YEAR EARLIER IN THE FIRST HALF OF THE YEAR CAR AND TRUCK SALES TOTALED 6984533 UNITS UP 92 FROM 1992 BY CONTRAST CAR SALES IN EUROPE THE WORLD'S LEADING AUTO MARKET ARE GOING IN THE OPPOSITE DIRECTION THE EUROPEAN AUTOMOBILE MANUFACTURERS ASSOCIATION REPORTED THAT JUNE SALES PLUNGED 184 TO 972280 UNITS FIRSTHALF SALES FELL 175 REFLECTING SAGGING CONSUMER CONFIDENCE ACROSS A RECESSIONRACKED CONTINENT THAT'S BAD NEWS FOR FORD MOTOR CO WHICH HAS BEEN LOSING MONEY IN EUROPE IN RECENT YEARS AND GENERAL MOTORS CORP WHOSE EUROPEAN OPERATIONS HAVE BEEN ONE OF THE COMPANY'S FEW PROFIT CENTERS BOTH COMPANIES HAVE SIGNIFICANT EXPOSURE IN GERMANY EUROPE'S BIGGEST MARKET AND ONE OF THE HARDEST HIT GERMAN SALES DROPPED 24 IN JUNE IN THE US THE CAR INDUSTRY'S SURPRISINGLY STRONG FIRST HALF REFLECTS LOW INTEREST RATES PENTUP DEMAND AND PRICECUTTING STRATEGIES BY THE AUTO MAKERS ACCORDING TO DEALERS AND INDUSTRY ANALYSTS MOREOVER THERE ARE SIGNS THAT CONFIDENCE IN THE ECONOMY HOWEVER SHAKY IT IS MAY BE RISING AMONG SOME CAR BUYERS SOME OF THE NERVOUSNESS ABOUT THE ECONOMY IS GONE SAYS KEN WILLIAMS GENERAL MANAGER OF FIELDS NISSAN CADILLAC OLDSMOBILE BUICK AND PONTIAC IN LAKE WALES FLA WHERE SALES JUMPED 40 IN JUNE SOME OF THE DISAPPOINTMENT THAT THINGS WEREN'T IMMEDIATELY DIFFERENT UNDER PRESIDENT CLINTON'S ADMINISTRATION IS DISAPPEARING WHAT'S DRIVING SALES SAYS RONALD A GLANTZ AUTOINDUSTRY ANALYST FOR DEAN WITTER REYNOLDS INC IS THE AGE OF THE CAR FLEET THE AVERAGE CAR ON THE ROAD IN THE US TODAY IS NINE YEARS OLD THE HIGHEST AVERAGE SINCE THE 1950S ANALYSTS ARE GENERALLY BULLISH ON THE OUTLOOK FOR CAR SALES MR GLANTZ SEES SALES FOR ALL OF 1993 TOTALING 143 MILLION CARS AND TRUCKS UP ABOUT 9 FROM LAST YEAR'S 131 MILLION VEHICLES BUT THERE IS STILL CONSIDERABLE CONCERN THAT HIGH PRICES ARE AN OBSTACLE ALMOST ALL THE CAR MAKERS DOMESTIC AND FOREIGN ARE OFFERING PRICE INCENTIVES IN SOME FORM AND GM DEALERS SAY THE NO 1 US AUTO MAKER IS PLANNING TO BROADEN ITS VALUE PRICING STRATEGY IN CALIFORNIA UNDER VALUE PRICING COMPANIES OFFER SEVERAL OPTIONS AS STANDARD EQUIPMENT WHILE CUTTING A CAR'S PRICE THIS STRATEGY HAS BEEN PAYING OFF FOR GM ON SEVERAL MODELS DEALERS SAY DETAILS ABOUT THE PLAN TO EXPAND THIS PROGRAM IN CALIFORNIA ARE STILL SKETCHY AND GM DECLINES TO COMMENT ON ITS FUTURE PRICING STRATEGY BUT THE NEED IS CLEAR SOME DEALERS SAY THE IMPORTS REALLY DID A JOB ON US SAYS JIM WILSON THE OWNER OF CASA DE CADILLAC IN SHERMAN OAKS CALIF A VALUE STRATEGY WILL REALLY HELP OUR SALES WHICH WERE ABOUT FLAT IN JUNE HE SAYS FOR THE FIRST TIME IN MONTHS GM MANAGED TO GAIN A FEW DECIMAL POINTS OF MARKET SHARE IN JUNE ACCOUNTING FOR 371 OF THE TOTAL US CARSALES MARKET COMPARED WITH 367 A YEAR EARLIER FOR THE FIRST HALF THOUGH GM'S MARKET SHARE WAS DOWN A FULL PERCENTAGE POINT TO 353 FROM A YEAR EARLIER THE BIG WINNERS IN THE FIRST HALF WERE FORD WHICH PUSHED ITS SHARE OF THE US CAR MARKET TO 222 FROM 208 A YEAR EARLIER AND CHRYSLER CORP WHICH BOOSTED ITS MARKET SHARE TO 102 FROM THE YEAREARLIER 78 FORD HAS BEEN A STRONG CONTENDER ALL YEAR WITH FIVE OF THE 10 BESTSELLING CARS IN THE US AND CHRYSLER IS BENEFITING FROM STRONG SALES OF ITS ACCLAIMED NEW LINE OF LH SEDANS AND ITS POPULAR MINIVANS THE BIG LOSERS MEANWHILE CONTINUED TO BE THE JAPANESE AUTO MAKERS AS A GROUP THE JAPANESE CAR MAKERS LOST A FULL TWO PERCENTAGE POINTS OF THE MARKET ACCOUNTING FOR 28 OF FIRSTHALF CAR SALES THE WEAK DOLLAR HAS FORCED THEM TO BOOST PRICES IN THE FACE OF STIFF COMPETITION FROM DOMESTIC CAR MAKERS ONLY NISSAN MOTOR CORP PUSHED ITS MARKET SHARE UP TO 55 IN THE FIRST HALF FROM 48 A YEAR AGO ON THE STRENGTH OF ROBUST SALES OF ITS NEW MIDSIZED ALTIMA SEDAN IN JUNE GM'S SALES OF CARS AND TRUCKS ROSE 55 TO 484508 UNITS COMPARED WITH A YEAR EARLIER FORD'S JUNE SALES WERE UP 88 TO 339497 CARS AND TRUCKS AND CHRYSLER POSTED A 267 GAIN TO 204700 VEHICLES COMPARED WITH JUNE 1992 AMONG THE LEADING FOREIGN NAMEPLATES IN JUNE TOYOTA MOTOR CO SALES ROSE 93 TO 90115 CARS AND TRUCKS HONDA MOTOR CO'S SALES DECLINED 196 TO 62130 CARS AND NISSAN'S SALES ROSE 181 TO 69341 CARS AND TRUCKS NOTE THERE WERE 26 SELLING DAYS IN THE MOST RECENT MONTH AND 26 A YEAR EARLIER PERCENTAGE DIFFERENCES BASED ON DAILY SALES RATE RATHER THAN SALES VOLUME 9307070002 930707 BUSINESS BRIEF ENVIRONMENTAL POWER CORP LETTER OF INTENT IS SIGNED FOR TAKEOVER BY KFX INC ENVIRONMENTAL POWER CORP SAID IT SIGNED A LETTER OF INTENT TO BE PURCHASED BY KFX INC FOR ABOUT 36 MILLION IN KFX COMMON STOCK OR CASH BUT BOSTONBASED ENVIRONMENTAL POWER SAID THE TAKEOVER WAS CONTINGENT ON SEVERAL FACTORS INCLUDING COMPLETION OF A KFX STOCK OFFERING ENVIRONMENTAL POWER PRODUCES ELECTRICITY FROM WASTE MATERIALS KFX IS A DENVERBASED ENVIRONMENTAL TECHNOLOGY COMPANY KFX WOULD ACQUIRE ENVIRONMENTAL POWER'S 12 MILLION SHARES OF COMMON STOCK AND EQUIVALENTS IN EXCHANGE FOR THREE MILLION SHARES OF KFX COMMON OR A COMBINATION OF SHARES AND CASH RAISED IN THE OFFERING ENVIRONMENTAL POWER'S SHARES WERE QUOTED 1 APIECE YESTERDAY IN LATE OVERTHECOUNTER TRADING WELL BELOW THE 3 THAT THE TAKEOVER WOULD VALUE THEM AT KFX SAID ITS SHARES WHICH ALSO TRADE OVERTHECOUNTER WERE QUOTED LATE YESTERDAY AT 1250 BID 9307070001 930707 WHO'S NEWS ITT CORP ITT CORP NEW YORK WILBERTO MONTES DE OCA 49 YEARS OLD WAS NAMED A VICE PRESIDENT HE CONTINUES AS DIRECTOR OF FIELD OPERATIONS AT THE HEADQUARTERS OF THIS FINANCIAL SERVICES INSURANCE AUTOMOTIVE HOTELS AND DEFENSE PRODUCTS COMPANY 9307060184 930706 WHO'S NEWS AMERICAN MAIZEPRODUCTS CO AMERICAN MAIZEPRODUCTS CO STAMFORD CONN PATRIC J MCLAUGHLIN 48 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER AT THIS CORN PROCESSING TOBACCO AND RELATED BUSINESSES CONCERN HE RETAINS THE POST OF PRESIDENT AS CEO MR MCLAUGHLIN SUCCEEDS WILLIAM ZIEGLER III 65 WHO RETIRED FROM THAT POST WEDNESDAY MR ZIEGLER WILL CONTINUE AS CHAIRMAN MR MCLAUGHLIN HAS ALSO BEEN CHIEF OPERATING OFFICER BUT THE COMPANY SAID IT WILL NO LONGER HAVE THAT POST 9307060183 930706 LEISURE & ARTS ON SPORTS THE WORST OF THE BEST BY FREDERICK C KLEIN CHICAGO THIS CITY'S MAJOR LEAGUE BASEBALL TEAMS WIN TROPHIES ABOUT AS OFTEN AS HALLEY'S COMET SIZZLES PAST SO ONE MIGHT THINK THAT FANS OF THE CHICAGO WHITE SOX WOULD HAVE BEEN DELIGHTED THAT THEIR FAVORITES WERE IN FIRST PLACE IN THE AMERICAN LEAGUE WEST WHEN THE BALTIMORE ORIOLES CALLED FOR A 4TH OF JULY WEEKEND SERIES SO ONE MIGHT BE MISTAKEN THE WAY THEY'RE PLAYING THEY SHOULD BE LUCKY TO BE IN THIRD OR FOURTH PLACE SAID TIMOTHY BRANDT OF SUBURBAN HINSDALE BEFORE SATURDAY NIGHT'S GAME NOT ENOUGH PITCHING NOT ENOUGH SPARK SAID JUNE CAMPANA OF RIVERSIDE POINTING TO HER COMPANION BILLIE BURKE SHE ADDED IF THEY EVER DECIDE TO HIRE A WOMAN MANAGER TO LIGHT A FIRE UNDER THOSE GUYS I KNOW TWO PEOPLE WHO'D DO A BETTER JOB THAN THE PERSON THEY'VE GOT THE WHITE SOX'S SIN OF COURSE WAS NOT IN BEING IN FIRST PLACE BUT IN THE MANNER IN WHICH THAT POSITION WAS ATTAINED THEY BEGAN THE ORIOLES SERIES THURSDAY AT A LESSTHANSCINTILLATING 3936 IN THE WONLOST COLUMN 1 1/2 GAMES AHEAD OF THE SECONDPLACE KANSAS CITY ROYALS AFTER SUNDAY'S 31 WIN THEY ENDED IT AT 4138 AND TIED FOR FIRST WITH KC THUS THEY WENT FROM BEING BASEBALL'S WORST FIRSTPLACE TEAM TO ONE WITH COMPANY FOR THAT TITLE IN THE AL EAST THEY'D BE FIFTH TO BE SURE THE CURRENT SEASON IS JUST SHORT OF THE HALFWAY MARK MANY MORE AFTERNOONS AND EVENINGS AT THE BALL PARK LIE AHEAD AND IF THE TEAM'S CUP LOOKS HALF EMPTY TO SOME IT LOOKS HALF FULL TO OTHERS GIVEN THE FACT WE HAVEN'T BEEN PLAYING WELL WE'RE HAPPY TO BE WHERE WE ARE SAYS STEVE SAX A SOX VETERAN WE THINK THINGS CAN ONLY GET BETTER FOR US AND THE WAY THE REST OF OUR DIVISION IS GOING BETTER SHOULD BE GOOD ENOUGH THAT THAT WOEBEGONE DIVISION IS THE AL WEST ILLUSTRATES THE CYCLICAL NATURE OF ATHLETIC GLORY FROM 1985 THROUGH '91 THIS WAS BASEBALL'S STRONGEST AMALGAM PRODUCING SIX AMERICAN LEAGUE PENNANT WINNERS AND FOUR WORLD SERIES CHAMPS THE MINNESOTA TWINS CLAIMED SERIES TITLES IN 1987 AND '91 THE OAKLAND A'S WON IN '89 AND SURPRISED MOST BY NOT DOING THE SAME THE YEARS BEFORE AND AFTER BUT TIME FLIES AND THOSE TWO CLUBS NOW FIND THEMSELVES OCCUPYING THE DIVISION'S BOTTOM RUNGS THE LASTPLACE TWINS HAVE HAD TWO EIGHTGAME LOSING STREAKS AND A NINEGAMER THIS SEASON AND THEIR PITCHERS' EARNED RUN AVERAGE IS BASEBALL'S WORST EXCEPT FOR THE EXPANSION COLORADO ROCKIES OF THE NATIONAL LEAGUE TRADES FREE AGENCY AND ATTRITION HAVE STRIPPED THE A'S OF SUCH FORMER STALWARTS AS JOSE CANSECO DAVE STEWART CARNEY LANSFORD AND WALT WEISS AND THEY STAND SIXTH DESPITE FIVE STRAIGHT WINS UNTIL SUNDAY THE ROYALS ENJOYED A MAY VICTORY SPURT AFTER MANAGER HAL MCRAE SENT TAPE RECORDERS FLYING DURING A POSTGAME OFFICE TANTRUM BUT HAVE LOST MORE THAN THEY'VE WON AFTER THAT SEATTLE CALIFORNIA AND TEXAS ARE WELL SEATTLE CALIFORNIA AND TEXAS THE WHITE SOX'S CLAIM TO CONTENDERSHIP IN THAT CROWD IS BASED ON AN AVERAGE OF 89 WINS OVER THE LAST THREE SEASONS WHICH GOT THEM TWO SECOND PLACES AND A THIRD THEIR MAIN ASSETS ARE FRANK THOMAS AND ROBIN VENTURA TWO OF BASEBALL'S BEST YOUNG HITTERS AND JACK MCDOWELL ONE OF THE BEST PITCHERS BIG FIRSTBASEMAN THOMAS 25 JOINED ELITE COMPANY RUTH GEHRIG MUSIAL WILLIAMS IN HIS INITIAL TWO MAJOR LEAGUE SEASONS BY BECOMING JUST THE EIGHTH PLAYER TO BAT OVER 300 WITH 20 HOME RUNS 100 RUNS BATTED IN 100 RUNS AND 100 WALKS IN CONSECUTIVE CAMPAIGNS THIRDBASEMAN VENTURA ALSO 25 BATS WITH POWER AND IS FLUID AFIELD MCDOWELL 27 WAS RUNNERUP FOR THE AMERICAN LEAGUE'S CY YOUNG AWARD AFTER LAST YEAR'S 2010 RECORD AND 13 COMPLETE GAMES BUT THE SOX HAVE HOLES IN AREAS IN WHICH HISTORICALLY THEY HAVE BEEN SOLID NAMELY SPEED AND PITCHING LANCE JOHNSON A SWIFT CENTERFIELDER HAS STOLEN 24 BASES BUT THE REST OF THE TEAM HAS ONLY 25 AND FOUR OF ITS 15 POSITION PLAYERS SAX GEORGE BELL BO JACKSON AND DAN PASQUA ARE GOOD MAINLY FOR DESIGNATED HITTING THE FIVE STARTING PITCHERS MCDOWELL WILSON ALVAREZ ALEX FERNANDEZ JASON BERE AND ROD BOLTON HAVE BUT SEVEN PREVIOUS MAJOR LEAGUE SEASONS AMONG THEM OF WHICH FOUR ARE MCDOWELL'S FOR US TO CHALLENGE OUR FOURTH AND FIFTH STARTERS BERE AND BOLTON HAVE TO COME THROUGH OR WE'LL NEED HELP FROM ELSEWHERE SAYS MANAGER GENE LAMONT THAT AND MORE CONSISTENCY ALL AROUND IN FACT THOUGH THE WHITE SOX HAVE BEEN QUITE CONSISTENT IN THEIR INCONSISTENCY THIS SEASON WITH A COUPLE OF SIXGAME WINNING STREAKS AND LOSING STREAKS OF SIX AND FOUR GAMES ON THEIR CARD THAT PATTERN PERSISTED AGAINST THE ORIOLES A TEAM WHOSE ROSTER BRISTLES WITH GOOD YOUNG PLAYERS AND WHOSE 4338 RECORD AFTER SUNDAY WAS ONLY FOURTH BEST IN THE AL EAST BUT WOULD HAVE LED THE WEST IN GAME ONE ON THURSDAY NIGHT THE O'S JAMIE MOYER A JOURNEYMAN JUNKBALLER AGAINST WHOM OPPOSING HITTERS HAD BATTED 314 PREVIOUSLY HELD THE SOX TO FOUR HITS IN EIGHT INNINGS IN A 10 BALTIMORE WIN WASTING A THREEHITTER BY MCDOWELL THE NEXT NIGHT THE CHICAGOANS HAD RUNS TO BURN WHACKING FOUR HOME RUNS AND THE O'S 121 BEHIND FERNANDEZ SOX MANAGEMENT DEDICATED THE WEEKEND TO THE TEAM'S 1983 DIVISIONAL CHAMPIONS WHOSE MOTTO WAS WINNING UGLY AND ON SATURDAY NIGHT THE PRESENT GANG LIVED UP TO HALF THAT PHRASE WITH ROOKIE BERE STARTING THEY GAVE UP EIGHT WALKS A HIT BATSMAN A WILD PITCH AN ERROR AND TWO PASSED BALLS IN A 96 ORIOLE VICTORY BUT ON SUNDAY AFTERNOON THE YOYO WHITE SOX WERE WATERTIGHT GETTING THREEHIT ONERUN PITCHING FROM ROOKIE BOLTON FOR SEVEN INNINGS AND TURNING THEIR FOUR HITS INTO THREE RUNS SECONDGUESSING LAMONT HAS BECOME A FAVORITE WINDY CITY PASTIME BUT THERE WAS LITTLE GROUND FOR THAT AFTER SUNDAY'S FRAY NICE TO SEE SOME GOOD PITCHING FROM BOLTON AND GOOD OFFENSIVE EXECUTION THE MANAGER SAID GRATEFULLY SOMEBODY IN OUR DIVISION'S GOING TO GET HOT ONE OF THESE DAYS AND MAYBE IT'LL BE US HE'S RIGHT ABOUT AT LEAST THE FIRST PART OF THAT STATEMENT I THINK 9307060182 930706 WHO'S NEWS VALENCE TECHNOLOGY INC VALENCE TECHNOLOGY INC SAN JOSE CALIF BERT C ROBERTS JR RESIGNED FROM THE BOARD OF THIS DEVELOPMENTSTAGE BATTERY COMPANY MR ROBERTS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MCI COMMUNICATIONS CORP CITED TIME DEMANDS OF MCI'S RECENTLY ANNOUNCED ALLIANCE WITH BRITISH TELECOMMUNICATIONS PLC 9307060181 930706 POLITICS & POLICY CLINTON ANNOUNCES SEVERAL DECISIONS INCLUDING EXTENDING NUCLEAR TEST BAN BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON RELEASED AN ARRAY OF DECISIONS OVER THE FOURTH OF JULY WEEKEND INCLUDING EXTENDING FOR 15 MONTHS THE US BAN ON NUCLEAR TESTING AND REMOVING OBSTACLES TO INTERNATIONAL LENDING TO VIETNAM BY TIMING THE ANNOUNCEMENTS OVER A HOLIDAY WEEKEND THE ADMINISTRATION HOPED TO DRAW ATTENTION AWAY FROM THE POLICY STANDS WHICH INCLUDED ACCEPTING A RECOMMENDATION TO CLOSE 130 MILITARY BASES AND REDUCE OPERATIONS AT 45 MORE THE BASE CLOSURE AND REALIGNMENT COMMISSION HAS ESTIMATED 23 BILLION IN ANNUAL SAVINGS FROM THE PLAN INDEPENDENT OF THE COMMISSION'S RECOMMENDATIONS THE PRESIDENT SAID HE WOULD CLOSE 90 BASES OVERSEAS MR CLINTON PROPOSED SPENDING 5 BILLION IN AN EFFORT TO BLUNT THE BLOW TO THE COMMUNITIES THAT WOULD BE HIT THE HARDEST BY THE CLOSINGS MR CLINTON'S AIDES SOUGHT TO RESOLVE THESE ISSUES BEFORE TOMORROW'S START OF THE ECONOMIC SUMMIT IN TOKYO OF THE LEADERS OF THE GROUP OF SEVEN INDUSTRIAL NATIONS AND FOLLOWING THE INTERNATIONAL SUMMIT AIDES WANTED MR CLINTON TO BE FREE TO FOCUS ON THE DOMESTIC BUDGET BILL WHICH FACES AN UNCERTAIN FUTURE ON CAPITOL HILL ALL DISPUTES WEREN'T RESOLVED HOWEVER MR CLINTON MUST STILL FORGE A COMPROMISE THAT WOULD ALLOW HOMOSEXUALS IN THE MILITARY AN EXPLOSIVE ISSUE THAT HE THINKS HAS HURT HIM IN OPINION POLLS HE MUST ALSO EASE THE FRICTION WITH MANY AFRICANAMERICAN LEADERS A KEY PART OF HIS POLITICAL BASE WHO FEEL STUNG BY HIS FAILURE TO STAND BY HIS NOMINATION OF LANI GUINIER TO HEAD THE JUSTICE DEPARTMENT'S CIVIL RIGHTS DIVISION SOME BLACKS ARE UPSET THAT DESPITE THEIR STRONG URGING THE PRESIDENT HASN'T APPOINTED MARY BERRY A POPULAR MEMBER OF THE US COMMISSION ON CIVIL RIGHTS AS COMMISSION CHAIRMAN THEY THREATEN TO CONTINUE CAUSING POLITICAL TROUBLES AND ARE DEMANDING THAT A BLACK JOIN THE PRESIDENT'S INNER CIRCLE MANY BLACKS ARE ALSO ANGERED BY MR CLINTON'S ENDORSEMENT OF VIRGINIA SEN CHARLES ROBB AN EMBATTLED DEMOCRAT WHO IS UP FOR REELECTION NEXT YEAR SEN ROBB IS BEING CHALLENGED BY DOUGLAS WILDER THE NATION'S FIRST BLACK GOVERNOR POLITICAL EXPERTS WERE SHOCKED BY WHAT THEY CONSIDERED AN UNWISE DECISION TO DIVE INTO THE INTRAPARTY CONTEST THE RELEASE OF AN INTERNAL REVIEW OF THE FIRING OF WHITE HOUSE TRAVEL OFFICE WORKERS SHOWED A DISORGANIZED STAFF WHOSE ACTIONS HAVE CONTRIBUTED TO THE PROBLEMS OF MR CLINTON'S FIRST FIVE MONTHS IN OFFICE FOUR STAFF MEMBERS WERE REPRIMANDED JEFF ELLERS A COMMUNICATIONS AIDE DAVID WATKINS HEAD OF WHITE HOUSE ADMINISTRATION WILLIAM KENNEDY AN ASSOCIATE COUNSEL AND AIDE CATHERINE CORNELIUS THE TRAVEL OFFICE MAKES ARRANGEMENTS FOR THE MEDIA TRAVELING WITH PRESIDENT CLINTON AS WELL AS FOR WHITE HOUSE STAFF MEMBERS WHO ARE ON BUSINESS THE REPORTS SHOW THAT MS CORNELIUS WHO HELPED ARRANGE PRESS TRAVEL DURING THE PRESIDENTIAL CAMPAIGN WAS TOLD BY MR WATKINS TO GATHER INFORMATION ON THE OFFICE WHICH HAS BEEN ACCUSED OF KEEPING POOR FINANCIAL RECORDS CHIEF OF STAFF THOMAS MACK MCLARTY APOLOGIZED TO THE SEVEN FIRED WORKERS FOR THE INSENSITIVITY SHOWED BY THE WHITE HOUSE SUCH AS LINKING THEIR DISMISSAL TO A FEDERAL BUREAU OF INVESTIGATION PROBE OF THE TRAVEL OFFICE MR MCLARTY SAID THAT FIVE OF THE SEVEN FIRED WORKERS WHO HAD NO MANAGEMENT ROLES WILL BE REINSTATED TO GOVERNMENT JOBS AMONG THE FINDINGS THAT MAY EMBARRASS THE PRESIDENT ARE THE DISCLOSURE THAT HIS PAL TV PRODUCER HARRY THOMASON HAD PRESSED THE CASE THAT THE TRAVEL OFFICE BE ALTERED AND HILLARY RODHAM CLINTON WAS MONITORING ACTIVITIES IN THE OFFICE AND WAS TOLD BEFOREHAND THAT THE WORKERS WERE TO BE FIRED THE REPORT BOLSTERS THE PERCEPTION THAT MR THOMASON AND OTHERS WERE TRYING TO HELP FRIENDS DO BUSINESS WITH THE WHITE HOUSE AND THAT MS CORNELIUS A DISTANT COUSIN OF THE PRESIDENT'S WAS SEEKING TO REMOVE THE TRAVEL OFFICE EMPLOYEES SO SHE COULD RUN THE OFFICE THE REPORT CONCLUDES THAT IT IS NOT A GOOD PRACTICE TO ALLOW NONSTAFF MEMBERS WORKING ON SPECIAL ASSIGNMENTS TO BECOME INVOLVED IN OTHER BUSINESS MR MCLARTY SAID A REVIEW IS UNDER WAY TO DETERMINE IF SOME OUTSIDERS' WHITE HOUSE PASSES SHOULD BE REVOKED THE PRESIDENT ALSO PROBABLY WILL BE CRITICIZED FOR OPENING THE DOOR FOR THE INTERNATIONAL MONETARY FUND TO ADOPT A PLAN SUPPORTED BY FRANCE AND JAPAN TO ALLOW VIETNAM TO REFINANCE 140 MILLION OF DEBT TO THE IMF SOME VETERANS GROUPS AND FAMILIES OF AMERICANS MISSING IN ACTION ATTACKED THE PRESIDENT'S DECISION BUT THE US WAS INCREASINGLY ISOLATED FROM THE REST OF THE WORLD IN ITS POLICY TOWARD VIETNAM AND OTHER VETERANS GROUPS AND REPUBLICAN AND DEMOCRATIC POLITICIANS WHO WERE DECORATED VIETNAM WAR VETERANS SUPPORT THIS DECISION 9307060180 930706 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT AGNICOEAGLE MINES LTD 43 MILLION SHARES VIA MERRILL LYNCH & CO ALOHA AIRGROUP INC INITIAL 52 MILLION CLASS A COMMON SHARES VIA GOLDMAN SACHS & CO AND PRUDENTIAL INC BOYD GAMING CORP INITIAL EIGHT MILLION SHARES VIA SALOMON BROTHERS INC CONCURRENT COMPUTER CORP 143 MILLION SHARES VIA SALOMON BROTHERS CONNECTICUT LIGHT & POWER 300 MILLION TWOPART NONCALLABLE 7YEARS AND 30YEARS CYRK INTERNATIONAL INC INITIAL TWO MILLION SHARES VIA MONTGOMERY SECURITIES ECHO BAY MINES LTD SIX MILLION SHARES FOUR MILLION IN THE US VIA GOLDMAN SACHS GENZYME TRANSGENICS INITIAL TWO MILLION SHARES VIA PAINEWEBBER INC NEWMONT MINING SECONDARY OFFERING OF 97 MILLION COMMON SHARES VIA SALOMON BROTHERS PETROLEOS DE VENEZUELA SA 13 BILLION IN YANKEE BONDS STONE ENERGY INITIAL 35 MILLION SHARES 31 MILLION SHARES OFFERED BY THE COMPANY VIA FIRST BOSTON CORP SUNDANCE HOMES INC INITIAL 27 MILLION SHARES VIA MONTGOMERY TACO CABANA INC 25 MILLION SHARES ONE MILLION OFFERED BY THE COMPANY VIA MONTGOMERY UNITED DOMINION REALTY TRUST INC FIVE MILLION SHARES VIA MERRILL LYNCH MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORP 175 MILLION OF STUDENT LOAN REVENUE BONDS VIA A SMITH BARNEY HARRIS UPHAM & CO INC GROUP NEW YORK LOCAL GOVERNMENT ASSISTANCE CORP APPROXIMATELY 450 MILLION OF SERIES 1993C REFUNDING BONDS VIA A GOLDMAN SACHS GROUP 9307060179 930706 BUSINESS BRIEFS FIFTH THIRD BANCORP SIGNED A DEFINITIVE AGREEMENT TO BUY TRISTATE BANCORP IN A STOCK SWAP VALUED AT 678 MILLION GEOTEK INDUSTRIES INC ACQUIRED NATIONAL BAND THREE LIMITED FROM ITS TWO SHAREHOLDERS VODAFONE GROUP PLC AND GENERAL ELECTRIC CO OF BRITAIN FOR 24 MILLION GLENFED INC SAID ITS GLENDALE FEDERAL BANK UNIT INTENDS TO SELL 23 FLORIDA BRANCHES WITH 11 BILLION IN DEPOSITS AS PART OF A PLAN TO RAISE CAPITAL AIR EXPRESS INTERNATIONAL CORP ACQUIRED THE VOTAINER GROUP OF COMPANIES IN THE NETHERLANDS FROM ROYAL VAN OMMEREN NV OF ROTTERDAM FOR 12 MILLION AON CORP SAID ITS ROLLINS HUDIG HALL GROUP UNIT ACQUIRED BOOKE & CO A WINSTONSALEM NC EMPLOYEE BENEFIT AND COMPENSATION CONSULTING FIRM TERMS WEREN'T DISCLOSED NATIONSBANK CORP ACQUIRED CHICAGO RESEARCH AND TRADING GROUP FOR 225 MILLION AVNET INC AN ELECTRONIC PARTS DISTRIBUTOR ACQUIRED HALLMARK ELECTRONICS CORP FOR ABOUT 345 MILLION IN STOCK AND CASH 9307060178 930706 QUARTERLY MUTUAL FUNDS REVIEW BESTPERFORMING FUND MANAGERS THRIVED ON THE TURNAROUND TRAIL BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL IT'S BEEN A GOOD YEAR FOR REBOUNDING STOCK FUNDS LEXINGTON STRATEGIC INVESTMENTS TOOK OFF ALONG WITH GOLD PRICES THIS YEAR RANKING AS THE BESTPERFORMING MUTUAL FUND FOR THE 12 MONTHS THROUGH JUNE 30 AS WELL AS THE SECOND QUARTER LEXINGTON'S COMEBACK FOLLOWS A DREADFUL DECADE IN WHICH A DECLINE IN GOLD PRICES PUMMELED THE FUND'S SOUTH AFRICAN MINING STOCKS LEXINGTON ALSO WAS THE NO 1 PERFORMER IN THE FIRST QUARTER THIS YEAR MERRILL LYNCH PACIFIC RACKED UP THE BEST 10YEAR PERFORMANCE GETTING A BOOST FROM THE RECENT REBOUND IN JAPANESE STOCKS THE FUND'S RETURNS HAD PREVIOUSLY BEEN DRAGGED DOWN BY THE LONG BEAR MARKET IN JAPAN THE BESTPERFORMING FUND OVER THE PAST FIVE YEARS HAS BEEN VISTA GROWTH & INCOME A BANKRUN MUTUAL FUND WHEN IT COMES TO LEXINGTON STRATEGIC INVESTMENTS TIMING IS EVERYTHING HAD YOU BOUGHT THE FUND DEC 31 1992 YOU WOULD HAVE TRIPLED YOUR MONEY BY JUNE 30 IN SIX MONTHS THE FUND HAD A 199 TOTAL RETURN INCLUDING PRICE CHANGE AND REINVESTED DIVIDENDS BUT IF YOU BOUGHT IT TWO YEARS AGO JUNE 30 1991 YOU WOULD HAVE LOST ABOUT 11 THROUGH JUNE 30 THE SHARP TURNAROUND AT LEXINGTON STRATEGIC INVESTMENTS WHICH FOR 10 YEARS WAS ONE OF THE WORSTPERFORMING MUTUAL FUNDS AROUND COMES FROM THE BOUNCE IN THE PRICE OF GOLD THE FUND IS INVESTED IN SMALL SOUTH AFRICAN MINING COMPANIES WHICH HAVE SUFFERED AS GOLD PRICES LANGUISHED IN THE PAST 10 YEARS BUT BOUNCED BACK WITH GOLD'S RECOVERY THE PRICE OF GOLD REALLY ISN'T GOING UP THAT DRAMATICALLY SAYS CAESAR BRYAN MANAGER OF THE 40 MILLION FUND SINCE DECEMBER 1991 THE PRICE OF GOLD BULLION ROSE TO 37840 AN OUNCE IN THE 12 MONTHS THROUGH JUNE 30 UP FROM 34310 BUT IT'S CLEAR MR BRYAN SAYS THAT GOLD HAS BROKEN OUT OF A VERY LONGTERM BEAR MARKET SOME PEOPLE WORRY THAT GOLD'S RISE MEANS THE RETURN OF INFLATION BUT MR BRYAN DOESN'T THINK SO THE MOST IMPORTANT FACTOR IN GOLD'S RISE HE SAYS IS A VERY POWERFUL DEMAND PULL FOR GOLD ESPECIALLY FROM THE FAR EAST THE DEMAND IS IN PART FOR JEWELRY HE SAYS BUT ALSO FOR GOLD AS AN INVESTMENT WHY THE SUDDEN NEW DEMAND FOR GOLD ALL THIS WEALTH IS BEING CREATED IN THE FAR EAST MR BRYAN SAYS THERE ARE ANY AMOUNT OF STUDIES THAT SHOW WHERE WEALTH IS CREATED DEMAND FOR GOLD IS CREATED PREVIOUSLY THAT DEMAND HAD BEEN MET BY RUSSIAN AND CENTRALBANK SALES OF GOLD THOSE SUPPLIES ARE NOW TO A LARGE EXTENT DRIED UP LEADING TO THE TURNAROUND IN GOLD PRICES MEANWHILE IN THE WEST MR BRYAN SEES A SHIFT BY SOME PEOPLE INTO REAL ASSETS SUCH AS GOLD WHILE INFLATION MAY NOT YET BE A PROBLEM HE THINKS THAT SOME INVESTORS ARE CLOSING OUT THE DISINFLATIONARY BET DISINFLATION REFERS TO THE CONDITION WHERE PRICE INCREASES IN AN ECONOMY ARE SLOWING DOWN LEXINGTON MANAGEMENT CORP TOOK OVER THE MANAGEMENT OF LEXINGTON STRATEGIC INVESTING IN 1992 AFTER THE SECURITIES AND EXCHANGE COMMISSION DISQUALIFIED THE PRIOR INVESTMENT ADVISER STRATEGIC MANAGEMENT INC FROM RUNNING THE FUND CITING VIOLATIONS OF SECURITIES REGULATIONS AND BREACH OF FIDUCIARY DUTY THE COMPANIES IN WHICH THE FUND INVESTS SUCH SMALL SOUTH AFRICAN MINES AS HARMONY GOLD MINING CO KINROSS MINES LTD AND WINKELHAAK MINES LTD TRADITIONALLY PAY OUT AROUND 90 OF THEIR EARNINGS TO SHAREHOLDERS GIVEN THE FIXED COSTS OF RUNNING A MINE PRICE INCREASES CAN MEAN SUBSTANTIALLY HIGHER PROFITS AND PAYOUTS OF COURSE THE PROCESS ALSO WORKS IN REVERSE THE REASON MR BRYAN CALLS IT THE MAGIC AND THE AGONY OF OPERATIONAL LEVERAGE THE FUND CARRIES A SALES CHARGE OR LOAD OF AS MUCH AS 575 THE FUND'S OPERATING EXPENSES WERE A HIGH 408 OF THE FUND'S ASSETS AT THE END OF 1992 WHEN THE FUND HAD 86 MILLION IN ASSETS BUT EXPENSES AS A PERCENTAGE OF ASSETS SHOULD DECLINE WITH THE RAPID GROWTH OF THE FUND SINCE THEN MARK TINCHER HAS IN HIS MORE THAN TWO YEARS RUNNING VISTA GROWTH & INCOME RELIED ON COMPUTERS FOR AN UNBIASED VIEW OF THE WORLD VARIOUS SCREENS RUN ON HIS COMPUTERS SEARCH NOT ONLY FOR INEXPENSIVE STOCKS BUT ALSO FOR THOSE WITH SOME UPWARD MOVEMENT IN EARNINGS OR SHARE PRICE AS WELL AS THOSE THAT SHOULD DO WELL IN THE EXPECTED ECONOMIC ENVIRONMENT THE COMPUTER THEN ASSEMBLES A LIST OF SUGGESTED STOCKS TO BUY THAT MR TINCHER FINDS MORE USEFUL THAN LISTS COMPILED BY WALL STREET ANALYSTS WITH THE IPO INITIAL PUBLIC OFFERING CALENDAR THE WAY IT IS TODAY AND THE INVESTMENT BANKING BUSINESS BUSY MAYBE THE FUNDAMENTAL RESEARCH WORK IS NOT BEING DONE AS THOROUGHLY AS IT MIGHT BE HE SAYS WE WANT TO BE MORE INDEPENDENT ONE NAME THAT THE COMPUTER THREW OUT THIS YEAR THAT HAS WORKED FOR MR TINCHER IS TEXTRON INC A CLASSIC OLD CONGLOMERATE IN AEROSPACE INSURANCE AND SOME CAPITAL GOODS THERE'S NOT A LOT OF COVERAGE OF THE COMPANY ON WALL STREET MR TINCHER SAYS AND IT LOOKED OVERLOOKED AND UNDERVALUED THE STOCK HAS GAINED ABOUT 10 POINTS SINCE MR TINCHER BOUGHT IT BUT MR TINCHER DOESN'T BLINDLY BUY WHAT THE COMPUTER SUGGESTS RATHER HE USES ITS SUGGESTIONS AS THE STARTING POINT FOR RESEARCH SUCH RESEARCH EARLIER THIS YEAR KEPT HIM FROM ADDING TO HIS HOLDINGS OF APPLE COMPUTER INC DESPITE A HIGH RATING FROM HIS COMPUTER SCREENS AFTER DOING SOME TIREKICKING WE FELT UNCOMFORTABLE ABOUT PRICING AND MARKET SHARE AT APPLE WHOSE STOCK FELL FROM 5150 TO 3950 IN THE SECOND QUARTER MR TINCHER DIDN'T SELL HIS APPLE POSITION BUT STILL HAS A PROFIT ON THE SHARES HE BOUGHT FURTHER BACK IN TIME LATELY MR TINCHER HAS BEEN WATCHING HEALTHCARE STOCKS ALTHOUGH HE'S NOT BITING YET IN A DEFENSIVE MEASURE HE INCREASED HIS CASH HOLDINGS TO 15 OF THE FUND'S ASSETS UP FROM 10 IN MARCH WE'RE SOMEWHAT CAUTIOUS ABOUT THE MARKET HE SAYS A REVIVAL OF INFLATION WHICH WOULD DRAW MONEY FROM FINANCIAL ASSETS INTO THE REAL ECONOMY HE SAYS WOULD MAKE US NERVOUS VISTA GROWTH & INCOME WITH ASSETS OF 575 MILLION IS MANAGED BY A SUBSIDIARY OF CHASE MANHATTAN BANK IT CHARGES A LOAD OF 475 AND HAS ANNUAL EXPENSES OF 143 OF ASSETS WHEN THE HOT JAPANESE STOCK MARKET TOOK A HIT IN JUNE STEPHEN SILVERMAN PORTFOLIO MANAGER OF MERRILL LYNCH PACIFIC DIDN'T FLINCH I DON'T LIKE IT WHEN STOCKS ARE TOO EXPENSIVE HE SAYS HE WANTS OPPORTUNITIES TO BUY A HICCUP IN THE MARKET IS NO BIG DEAL TO MR SILVERMAN WHO FROM 1989 THROUGH 1992 RODE OUT THE JAPANESE BEAR MARKET ONE OF THE WORST IN THIS CENTURY WITH APLOMB MR SILVERMAN HAS RUN THIS LITTLEKNOWN FUND WITH ASSETS OF 613 MILLION FOR MORE THAN A DECADE INVESTING IN ALL SORTS OF PACIFIC MARKETS BUT PRIMARILY IN JAPAN WHILE JAPANESE STOCKS WERE ROARING IN THE 1980S MR SILVERMAN MADE GOOD MONEY THOUGH HE LAGGED BEHIND THE MORGAN STANLEY INDEX OF PACIFIC STOCKS BUT AS JAPANESE STOCKS FELL OFF A CLIFF AFTER 1989 LOSING ABOUT 60 IN THREE YEARS MR SILVERMAN'S FUND MANAGED TO HANG ONTO ITS GAINS AND EVEN MADE A LITTLE MONEY MR SILVERMAN CUT BACK ON HIS JAPAN EXPOSURE AND MADE MONEY IN HONG KONG AND SMALL SOUTHEAST ASIAN MARKETS TODAY HE HAS INVESTED MORE THAN 65 OF THE FUND IN JAPAN UP FROM AN EXPOSURE BELOW 50 IN 1990 THE COMEBACK THIS YEAR IN JAPANESE MARKETS HELPED TO GIVE THE FUND A 225 GAIN FROM DEC 31 THROUGH JUNE 30 IN JAPAN MERRILL PACIFIC OWNS SHARES IN INSURERS SUCH AS FUJI FIRE & MARINE INSURANCE CO AND KOA FIRE & MARINE INSURANCE CO WHICH SELL FOR LESS THAN THE MARKET VALUE OF THE COMPANIES' INVESTMENTS MERRILL PACIFIC OWNS TOYO SEIKAN KAISHA LTD A MAKER OF CANS AND BOTTLES CHUDENKO CORP AN ELECTRICAL CONSTRUCTION COMPANY AND ITOYOKADO CO A RETAILING CHAIN DESPITE THE TURMOIL IN THE PACIFIC MARKETS THE FUND RARELY TRADES STOCKS WITH A PORTFOLIO TURNOVER RATE OFTEN IN THE VICINITY OF 30 A YEAR ABOUT 75 OF THE FUND'S ASSETS ARE IN HONG KONG INCLUDING A BIG STAKE IN HONG KONG LIGHT & POWER MR SILVERMAN HAS SPRINKLED 4 OF THE FUND IN MALAYSIA 4 IN SINGAPORE AND ONLY 3 IN AUSTRALIA WHOSE MARKET HAS BEEN GAINING GROUND SINCE NOVEMBER I MIGHT MOVE FROM 3 TO 7 OR 8 IN AUSTRALIA HE SAYS THE BREAKUP OF THE TRADITIONAL RULING PARTY IN JAPAN HAS TAKEN BACK SOME OF JAPAN'S GAINS THIS YEAR BUT IF THE MARKET DECLINES FURTHER THIS SUMMER MR SILVERMAN PLANS TO GET OUT HIS CHECKBOOK AND BUY SOME JAPANESE STOCKS THAT SHOULDN'T BE TOO HARD BECAUSE THE FUND HAS 10 OF ITS ASSETS IN CASH THE FUND SELLS BOTH A SHARES AND B SHARES WHICH INVEST IN THE SAME PORTFOLIO BUT HAVE DIFFERENT SALES CHARGES THE A SHARES CHARGE A LOAD OF AS MUCH AS 65 AND HAVE ANNUAL EXPENSES OF 101 THE B SHARES CHARGE A 4 LOAD TO REDEEMING SHAREHOLDERS IN THE FIRST YEAR A SALES CHARGE THAT DECLINES TO ZERO AFTER FOUR YEARS IN THE FUND AND HAVE ANNUAL EXPENSES OF 204 A LOOK AT CONSUMERORIENTED MONEY FUNDS AND SOME OF THEIR HOLDINGS AT THE END OF THE SECOND QUARTER PERFORMANCE FIGURES ARE ESTIMATED ANNUALIZED YIELDS WHICH INCLUDE EARNINGS FROM THE FUNDS INVESTMENTS AND THE EFFECTS OF COMPOUNDING FUNDS OPEN ONLY TO INSTITUTIONS SPECIAL PURPOSE FUNDS AND TAXEXEMPT FUNDS ARE EXCLUDED FROM THESE TABLES 9307060177 930706 TECHNOLOGY LILLY'S NEW CHIEF TRIES TO CALM WATERS AFTER HELPING OUST POPULAR PREDECESSOR BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL ELI LILLY & CO'S NEW CHAIRMAN AND CHIEF EXECUTIVE OFFICER MOVED SWIFTLY LAST WEEK TO REASSURE THE GIANT DRUG COMPANY'S 32000 EMPLOYEES SHAKEN BY THE ABRUPT OUSTER OF THEIR POPULAR CHIEF EXECUTIVE VAUGHN D BRYSON RANDALL L TOBIAS A FORMER AMERICAN TELEPHONE & TELEGRAPH CO VICE CHAIRMAN AND A LILLY DIRECTOR TOOK SEVERAL STEPS AIMED AT SMOOTHING THE WATERS SINCE THE JUNE 25 FIRING OF MR BRYSON BY A DIVIDED BOARD AMONG OTHER THINGS MR TOBIAS SAID IN AN INTERVIEW THAT CONTRARY TO RUMORS HE DOESN'T PLAN ANY LAYOFFS AND HE INFORMED LILLY EXECUTIVES THAT THE COMPANY'S STRATEGIC DIRECTION WON'T CHANGE HE ALSO ENDORSED THE COMPANY'S EXISTING POLICY OF PAYING FOR INJURIES TO PATIENTS INVOLVED IN TESTS OF A HEPATITIS DRUG WHICH THE COMPANY SAID LAST WEEK HAD FAILED IN EARLY CLINICAL TRIALS THROUGHOUT LAST WEEK THE 51YEAROLD EXECUTIVE'S VISIT TO THE COMPANY CAFETERIA A TALK OVER THE PUBLICADDRESS SYSTEM AND HIS SHIRTSLEEVES VISITS WITH WORKERS IN LILLY PLANTS APPEARED REMINISCENT OF THE MAN HE HELPED TO FIRE IN HIS 20 MONTHS AS CEO MR BRYSON 55 HAD INTRODUCED A NEW OPENNESS AND MORE RELAXED MANAGEMENT STYLE AT THE STAID INDIANAPOLIS COMPANY WHILE MR BRYSON'S ALLIES ARE UNLIKELY TO FALL FOR THEIR NEW LEADER OVERNIGHT THEY GRUDGINGLY GAVE HIM HIGH MARKS IN HIS FIRST FEW DAYS IF THE BOOK TURNS OUT TO BE ANYTHING LIKE THE COVER PEOPLE ARE SAYING THIS GUY MAY NOT BE SO BAD SAID ONE EXECUTIVE MR BRYSON'S DISMISSAL IN AN 84 VOTE WITH TWO ABSTENTIONS WAS SAID TO HAVE BEEN SPURRED BY LILLY'S WEAKER FINANCIAL RESULTS IN RECENT QUARTERS AND BY DIFFERENCES IN MANAGEMENT STYLE BETWEEN THE FORMER CEO AND RICHARD D WOOD WHO PRECEDED HIM AS CHIEF EXECUTIVE AND WAS CHAIRMAN UNTIL RELINQUISHING THAT POST TO MR TOBIAS LATE LAST MONTH BOTH MR WOOD AND MR BRYSON AS WELL AS LILLY DIRECTORS WHO FAVORED THE EXECUTIVE CHANGES CONTINUED TO DECLINE TO COMMENT BUT ONE FORMER DIRECTOR EUGENE L STEP WHO RECENTLY RETIRED AS PRESIDENT OF LILLY'S PHARMACEUTICAL DIVISION SAID COMMUNICATIONS BETWEEN THE TWO MEN WEREN'T AS GOOD AS MIGHT HAVE BEEN DESIRABLE PEOPLE FAMILIAR WITH BOARDROOM DELIBERATIONS SAID MR BRYSON AND DIRECTORS GENERALLY HAD BEEN IN AGREEMENT OVER COMPANY STRATEGY FOR EXAMPLE MR BRYSON HAD RAISED THE POSSIBILITY OF SELLING THE HYBRITECH MEDICAL DEVICE SUBSIDIARY AN IDEA THE BOARD LIKED HYBRITECH MAKES A PROSTATESCREENING TEST WHOSE MARKET HAS BEEN SERIOUSLY ERODED BY A COMPETING ABBOTT LABORATORIES VERSION FOR HIS PART MR TOBIAS INSISTED ON MR WOOD STEPPING DOWN AS CHAIRMAN BEFORE HE WOULD AGREE TO REPLACE MR BRYSON INSIDERS SAY FOR NOW ALL THREE MEN REMAIN ON THE BOARD ALTHOUGH IT'S LIKELY MR BRYSON WILL RESIGN AFTER HIS SEVERANCE PACKAGE IS NEGOTIATED AS CEO MR TOBIAS'S FIRST OFFICIAL ACT IN TRYING TO WOO KEY MANAGERS ALLIED WITH MR BRYSON WAS GOING TO LUNCH IN THE COMPANY CAFETERIA WITH SIDNEY TAUREL MR TAUREL A SENIOR LILLY EXECUTIVE AND DIRECTOR IS ONE OF TWO BOARD MEMBERS WHO MADE IMPASSIONED DEFENSES OF MR BRYSON TO OTHER DIRECTORS MR TOBIAS ALSO WON PRAISE FOR THE APLOMB WITH WHICH HE HANDLED THE DISAPPOINTING NEWS THAT THE HEPATITIS DRUG FIALURIDINE PRODUCED SEVERE SIDE EFFECTS IN TRIALS IN PAYING FOR PATIENTS' INJURIES LILLY MAY END UP FOOTING THE BILL FOR AS MANY AS THREE LIVER TRANSPLANTS FOR EXTREMELY ILL PATIENTS HOWEVER THE NEW CHIEF EXECUTIVE CAN'T ESCAPE FROM LILLY'S BASIC WEAKNESSES INCLUDING A DEARTH OF PROMISING NEW DRUGS FOR THE IMMEDIATE FUTURE THURSDAY MOODY'S INVESTORS SERVICE INC PLACED THE COMPANY'S LONGTERM DEBT RATINGS OF TRIPLEA UNDER REVIEW FOR POSSIBLE DOWNGRADING MOODY'S CITED A NEWDRUG DEVELOPMENT PIPELINE THAT IS UNUSUALLY LEAN FOR THE INTERMEDIATE TERM LILLY SHARES CLOSED AT 47125 FRIDAY IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING DOWN 25 CENTS 9307060176 930706 INTERNATIONAL WESTLAND GROUP PLC WINS 5831 MILLION IN ARBITRATION RULING SPECIAL TO THE WALL STREET JOURNAL LONDON UNITED KINGDOM HELICOPTER CONCERN WESTLAND GROUP PLC SAID IT WON 385 MILLION 5831 MILLION IN DAMAGES IN A LEGAL DISPUTE WITH ARAB PARTNERS THAT DATES BACK TO 1980 THE AWARD WHICH IS STILL OPEN TO APPEAL WAS MADE BY A GENEVABASED ARBITRATION TRIBUNAL IT WOULD HAVE A MATERIAL EFFECT ON EARNINGS IF IT STANDS UP WESTLAND HAD TURNOVER OF 450 MILLION LAST YEAR THE ACTION WAS TAKEN AGAINST THE ARAB ORGANIZATION FOR INDUSTRIALIZATION ARAB BRITISH HELICOPTER CO AND SAUDI ARABIA QATAR AND THE UNITED ARAB EMIRATES WESTLAND SOUGHT DAMAGES AFTER THE THREE ARAB COUNTRIES BROKE A CONTRACT FOR WESTLAND TO PROVIDE 250 HELICOPTERS THE CONTRACT WAS BROKEN AFTER A FOURTH PARTNER EGYPT SIGNED THE CAMP DAVID MIDEAST ACCORDS IN 1980 A WESTLAND SPOKESMAN SAID 9307060175 930706 CORPORATE FOCUS SPAGHETTI WAREHOUSE TREKS TO SUBURBS FROM DOWNTOWN DINERS' FEAR OF URBAN CRIME PROMPTS CHAIN TO 'GO WHERE CUSTOMER IS' BY TARA PARKER POPE STAFF REPORTER OF THE WALL STREET JOURNAL AFTER TWO DECADES OF DOWNTOWN DINING SPAGHETTI WAREHOUSE INC IS HEADING TO THE 'BURBS THE GARLAND TEXAS ITALIANRESTAURANT CHAIN WHICH MADE ITS MARK BRAVING URBAN AMERICA TO TRANSFORM OLD WAREHOUSES INTO FAMILY RESTAURANTS HAS VIRTUALLY ENDED ITS TREK DOWNTOWN PRODDED BY SAGGING SALES AND WEAK EARNINGS THE COMPANY HAS DECIDED TO FORGO THE HISTORIC FOR THE HOMOGENEOUS PLANNING NINE NEW RESTAURANTS NEXT YEAR IN SUBURBAN STRIP CENTERS SHOPPING MALLS AND OTHER LOCATIONS SINCE JANUARY THE CHAIN HAS OPENED TWO SUBURBAN PROTOTYPES OUTSIDE DALLAS AND CHICAGO THE DECISION COMES AT A TIME WHEN URBAN PLANNERS AND CITY LEADERS STILL TRUMPET A RENAISSANCE OF THE NATION'S DOWNTOWNS URGING THE VERY KIND OF REVITALIZATION THAT SPAGHETTI WAREHOUSE'S PRESENCE HAS ALREADY TRIGGERED IN A HALFDOZEN AREAS BUT WHILE CIVIC BOOSTERS SAY ONE THING THE MARKET SAYS SOMETHING ELSE SPAGHETTI WAREHOUSE OFFICIALS AND ANALYSTS SAY THAT IN THE WAKE OF FEARS ABOUT URBAN CRIME MANY PEOPLE SIMPLY DON'T WANT TO BRING THEIR FAMILIES INTO THE CITY PLENTY OF OTHER RESTAURANT CHAINS AGREE DALLASBASED ON THE BORDER CAFES INC SAYS IT RECENTLY OPENED TWO NEW STORES IN THE DENVER AREA BUT OPTED NOT TO GO DOWNTOWN DESPITE A HEADY REVITALIZATION EFFORT THERE NONE OF BRINKER INTERNATIONAL INC'S 370 RESTAURANTS IN 43 STATES ARE IN DOWNTOWNS SAYS A SPOKESMAN GENERAL MILLS INC'S OLIVE GARDEN UNIT SAYS THAT OF MORE THAN 400 RESTAURANTS ONLY TWO ARE IN DOWNTOWN LOCATIONS ALTHOUGH AN URBAN EATERY IS PLANNED FOR NORTH CAROLINA BUT FOR SPAGHETTI WAREHOUSE THE MOVE TO THE SUBURBS MAY BE A PAINFUL TRANSITION IN ADDITION TO FACING TOUGHER COMPETITION FROM BIG NATIONAL CHAINS THE COMPANY RISKS CANNIBALIZING ITS OWN DOWNTOWN STORES MOREOVER BUILDTOSUIT WAREHOUSE CLONES DON'T TRIGGER THE TAX BREAKS FOR HISTORIC RENOVATION THAT HAVE BUOYED THE COMPANY'S BOTTOM LINE IN THE PAST THE CHAIN'S INCOMETAX RATE FOR THE FIRST THREE QUARTERS SPIKED TO 312 UP FROM 232 LAST YEAR AND COULD JUMP AS HIGH AS 38 NEXT YEAR AN OFFICIAL SAID NEVERTHELESS RESTAURANT ANALYSTS LAUD THE SUBURBAN PUSH AS THE ONLY WAY SPAGHETTI WAREHOUSE CAN GROW THE GENERAL PROBLEM IS PEOPLE HAVE LESS FAITH IN THEIR INNER CITIES SAID MICHAEL J MARTIN AN ANALYST WITH MORAN & ASSOCIATES IN GREENWICH CONN ALTHOUGH THE CURRENT STORE SALES ARE NOT EXCITING THEY'RE PROFITABLE THE PROFIT HOPEFULLY WILL PROVIDE A CASH FLOW TO BUILD THE PROTOTYPES AND CHANGE THE NATURE OF THE COMPANY SALES AT SPAGHETTI WAREHOUSE'S DOWNTOWN LOCATIONS DROPPED NEARLY 6 IN MAY AND A SERIES OF MISSTEPS INCLUDING A STORE IN SOUTH BEND IND THAT WAS SHUT DOWN AFTER A YEAR FOR LACK OF BUSINESS AND THE INDEFINITE DELAY OF A GRAND RAPIDS MICH SITE DUE TO LEADCONTAMINATION PROBLEMS CAUSED EARNINGS TO SAG IN THE FISCAL THIRD QUARTER ENDED APRIL 4 NET INCOME DROPPED BY MORE THAN 30 TO 102 MILLION OR 16 CENTS A SHARE FROM 148 MILLION OR 23 CENTS A SHARE A YEAR EARLIER ANALYSTS EXPECT MORE OF THE SAME WHEN THE COMPANY RELEASES FISCAL FOURTHQUARTER NUMBERS LATER THIS SUMMER MR MARTIN FOR INSTANCE PREDICTS EARNINGS OF 19 CENTS A SHARE DOWN FROM 24 CENTS A YEAR EARLIER SPAGHETTI WAREHOUSE'S STOCK PRICE MEANWHILE HAS PLUMMETED 47 SINCE THE BEGINNING OF ITS FISCAL YEAR IN JULY 1992 WHEN IT TRADED AT 23625 ON FRIDAY THE STOCK CLOSED AT 1250 UP 25 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE STILL MR NEEB THE CHAIN'S PRESIDENT IS QUICK TO SAY THE COMPANY ISN'T ABANDONING THE DOWNTOWN STORES AND THE FORAY INTO SUBURBIA IS DICTATED BY GEOGRAPHY AS WELL AS PROFIT THERE SIMPLY AREN'T AS MANY DOWNTOWN MARKETS LEFT WHERE SPAGHETTI WAREHOUSE OR ITS COMPETITOR OLD SPAGHETTI FACTORY WHICH IS OPERATED BY OSF INTERNATIONAL INC DON'T ALREADY HAVE STORES WE STILL VERY MUCH BELIEVE IN THE DOWNTOWN AREA MR NEEB SAYS OUR HERITAGE AND OUR ROOTS ARE IN THE DOWNTOWN STORES TYPICAL IS THE ORIGINAL SPAGHETTI WAREHOUSE BUILT IN 1972 FROM AN OLD WAREHOUSE ON DALLAS'S DEPRESSED WEST SIDE AND CREDITED WITH HELPING TO SPARK THE AREA'S COMEBACK THE NOW TRENDY WEST END DISTRICT ATTRACTS ABOUT SIX MILLION VISITORS A YEAR WITH ITS RESTAURANTS BARS ARCADE AND UPSCALE OFFICE SPACE BUT ANALYSTS AND COMPANY OFFICIALS SAY SALES AT THIS EATERY LIKE MANY OF THE COMPANY'S DOWNTOWN RESTAURANTS ARE FALLING THEY BLAME URBAN WOES SUCH AS THE LOS ANGELES RIOTS OR A MELEE THAT ERUPTED DURING THE SUPERBOWL VICTORY PARADE FOR THE DALLAS COWBOYS FOR TARNISHING DOWNTOWN'S IMAGE SOME OF THE OLD STORES ARE IN AREAS WHERE THEY NEED ARMED GUARDS OUTSIDE IN THE PARKING LOT SAYS MONTGOMERY SECURITIES ANALYST MICHAEL G MUELLER THAT'S THE RISK YOU TAKE IN THESE DOWNTOWN LOCATIONS THAT YOU DON'T TAKE IN THE SUBURBS GOING TO THE SUBURBS JUST TAKES A BIG ELEMENT OF UNCERTAINTY OUT OF IT FURTHERMORE DEVELOPING OLD WAREHOUSES CAN BE SLOW GOING THE COMPANY'S HARTFORD CONN STORE FINALLY OPENED IN MAY AFTER A 90DAY DELAY PROMPTED BY ENVIRONMENTAL POSTING REQUIREMENTS IN SPRINGFIELD MASS THE RESTAURANT SITE HAD SUCH A CONVOLUTED TITLE HISTORY THAT A TITLE CHECK ON ONE PARCEL OF LAND REQUIRED A COURT RULING THE COMPANY HAS LONG STRUGGLED TO ESTABLISH DOWNTOWN EATERIES IN BALTIMORE AND GRAND RAPIDS BUT STILL HASN'T FOUND PROPER SITES IN THE SUBURBS THE CHAIN WON'T HAVE TO PIONEER A MARKET AND PERSUADE DINERS TO COME THEY ARE ALREADY THERE AS ARE THE ZONING AND INFRASTRUCTURE AT THE COMPANY'S NEW ADDISON TEXAS RESTAURANT MUCH OF THE ORIGINAL AMBIENCE HAS BEEN DUPLICATED BRASS BED POSTS ADORN SEATING BOOTHS AND CIRCA 1930S ADVERTISEMENTS DECORATE THE WALLS SPAGHETTI WAREHOUSE FOUNDER ROBERT HAWK WHO SAYS HE STAUNCHLY SUPPORTS SUBURBAN EXPANSION ADMITS TO NOSTALGIA WHEN HE VISITS THE ADDISON STORE EVEN SO THE ADDISON STORE HAS BEEN SO SUCCESSFUL COMPANY OFFICIALS SAY THAT THEY OPENED ONE JUST LIKE IT IN ELK GROVE VILLAGE ILL JUST OUTSIDE CHICAGO IN THE NEXT 12 MONTHS THE COMPANY WHICH OPERATES 31 STORES IN 16 STATES IS PLANNING NINE MORE SUBURBAN EATERIES IN TOWNS INCLUDING AURORA ILL AND PLANO TEXAS AS WELL AS IN SUBURBS OF HOUSTON ATLANTA AND FORT WORTH AND THE CHAIN SAYS IT ALREADY HAS FINANCING FOR ANOTHER 12 SUBURBAN STORES IN THE 1995 FISCAL YEAR STILL MR NEEB INSISTS IT'S TOO SOON TO WRITE OFF DOWNTOWN ALTOGETHER I'M SURE THERE WILL BE A POINT IN TIME WHEN PEOPLE ARE SAYING I DON'T WANT TO FIGHT THE MALL TRAFFIC SO I'LL JUST GO DOWNTOWN' THESE THINGS GO IN CYCLES MAJOR BUSINESS OPERATOR OF 31 ITALIAN RESTAURANTS IN 16 STATES INCLUDING 29 RESTAURANTS IN URBAN LOCATIONS AVERAGE CHECK IS 775 A PERSON 9307060174 930706 DIVIDEND NEWS CLEVELANDCLIFFS INC CLEVELANDCLIFFS INC CLEVELAND SAID JULY 13 WILL BE THE PAY DATE FOR ITS PREVIOUSLY DECLARED PRORATA DIVIDEND TO SHAREHOLDERS OF 15 MILLION COMMON SHARES OF LTV CORP AND THE SPECIAL CASH DIVIDEND OF 1 EACH ON CLIFFS' COMMON SHARES THE IRON ORE CONCERN DECLARED THE DIVIDENDS ON JUNE 18 THE CASH PAYMENT WILL BE AT THE RATE OF 15875 A SHARE THE LAST SALES PRICE FOR LTV STOCK REPORTED BY THE NEW YORK STOCK EXCHANGE IN ITS WHEN ISSUED MARKET JUNE 29 THE FIRST TRADING DAY AFTER THE EFFECTIVE DATE OF THE LTV CORP REORGANIZATION PLAN 9307060173 930706 SOUTH KOREA BREAKS GROUND IN EXPORT DRIVE PRODUCTS SPURNED IN WEST SELL IN EXSOVIET BLOC DEVELOPING COUNTRIES BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL COMING SOON SOUTH KOREA REPRISES ITS ROLE AS AN EXPORTDRIVEN ECONOMIC MIRACLE THIS TIME HOWEVER THE SETTING HAS CHANGED SOUTH KOREAN EXPORT GROWTH IS RECOVERING FROM YEARS OF STEADY DECLINE EXPORTS OF GOODS AND SERVICES ROSE 12 IN THE FIRST QUARTER OF THIS YEAR FROM A YEAR EARLIER UP FROM 53 GROWTH THE PREVIOUS QUARTER THAT IMPROVEMENT ANALYSTS SAY SHOULD HELP REVERSE THE COUNTRY'S 18MONTHOLD ECONOMIC SLOWDOWN YET SOUTH KOREA IS NO CLOSER TO ITS LONGSTATED GOAL OF CHALLENGING JAPAN AS AN EXPORTER OF PREMIUM GOODS THAN IT WAS IN THE LATE 1980S WHEN ITS INDUSTRIAL JUGGERNAUT WAS BROADSIDED BY LABOR UNREST AND RISING INTEREST RATES INDEED THAT FAILURE IS REFLECTED IN SOUTH KOREAN INDUSTRY'S SHRINKING MARKET SHARE IN THE WEST AND JAPAN THE US JAPAN HONG KONG AND GERMANY SOUTH KOREA'S FOUR BIGGEST TRADING PARTNERS ACCOUNTED FOR 50 OF SOUTH KOREA'S TOTAL EXPORTS LAST YEAR DOWN FROM 59 IN 1990 UNABLE TO COMPETE IN MOREMATURE MARKETS SOUTH KOREAN MANUFACTURERS ARE FOCUSING ON DEVELOPING COUNTRIES AND THE FORMER SOVIET BLOC WHERE THEY RETAIN A RELATIVE PRICE ADVANTAGE AND FACE LESSDEMANDING CONSUMERS THEY ARE RESOURCEFUL AND THEY DO SEEK NEW MARKETS SAYS THE CHARGE D'AFFAIRES AD INTERIM AT THE SEOUL EMBASSY OF AN EAST EUROPEAN COUNTRY ONCE THEY'VE HAD MARKET X THEY GO AFTER MARKET Y THAT'S HOW THEY MAINTAIN THEIR TRADE VOLUME YET SOME ECONOMISTS FEAR THAT THE TREND IS LESS A SIGN OF PERSISTENCE THAN A PALLIATIVE FOR SOUTH KOREAN INDUSTRY'S ILLS WE'RE GETTING LEFT BEHIND IN PRICE AND QUALITY IN DEVELOPED MARKETS AND THAT'S WHY MOST EXPORTS ARE GOING INTO LESSDEVELOPED ONES SAYS LEE HAHNKOO A DIRECTOR AT THE DAEWOO RESEARCH INSTITUTE A THINK TANK CONTROLLED BY DAEWOO GROUP THAT TYPE OF SITUATION CANNOT BE SUSTAINED FOR NOW HOWEVER SOUTH KOREAN INDUSTRY IS NOURISHING THE WORLD'S NEWEST GENERATION OF CONSUMERS SALES OF HYUNDAI GROUP AUTOS FOR EXAMPLE WHILE STAGNANT IN THE US ARE ROBUST IN THE NEWLY FORMED CZECH REPUBLIC THEY HAVE A GOOD DISTRIBUTION AND MARKETING NETWORK SAYS LUDEK BOAKORNY THE COMMERCIAL ATTACHE OF THE CZECH EMBASSY IN SEOUL OVER THE NEXT FIVE TO SIX YEARS WE CAN BECOME A BIG MARKET FOR THEM SOUTH KOREAN EXPORTS TO LATIN AMERICA LAST YEAR ROSE 72 TO 5 BILLION EXPORTS TO CHINA STARTING FROM ZERO WHEN SEOUL AND BEIJING NORMALIZED RELATIONS 18 MONTHS AGO HAVE REACHED 200 MILLION AND TRADE WITH THE FORMER SOVIET UNION THOUGH SMALL IS GROWING AT A FURIOUS PACE SAMSUNG GROUP FOR EXAMPLE SAW THE VALUE OF ITS SALES OF HOME APPLIANCES TO THE COMMONWEALTH OF INDEPENDENT STATES MORE THAN TRIPLE IN THE FIRST FIVE MONTHS OF THIS YEAR FROM A YEAR EARLIER THANKS TO SOUTH KOREA'S IMPROVING EXPORTS PRIVATE AND GOVERNMENT ECONOMISTS HAVE REVISED UPWARD THEIR FORECASTS FOR ANNUAL GROSS DOMESTIC PRODUCT GROWTH THIS YEAR TO BETWEEN 6 AND 7 FROM BETWEEN 4 AND 5 IN THE QUARTER ENDED MARCH 31 THE ECONOMY GREW AT A 33 RATE UP FROM 28 THE PREVIOUS QUARTER AND THE FIRST UPTICK SINCE MID1991 PROMPTED BY RENEWED EXPORT SUCCESS SOUTH KOREAN MANUFACTURERS ARE BUILDING FACTORIES AT THE SOURCE OF FRESH DEMAND DIRECT INVESTMENT OVERSEAS ROSE 61 IN THE FIRST FIVE MONTHS OF THE YEAR COMPARED WITH THE SAME PERIOD LAST YEAR MOST OF IT EARMARKED FOR THE DEVELOPING WORLD NO CONGLOMERATE SYMBOLIZES THE TREND BETTER THAN DAEWOO WHICH HAS ENTERED INTO TRADE AND JOINTVENTURE AGREEMENTS WITH PARTNERS IN LOCATIONS AS DIVERSE AS RUSSIAN TATARSTAN AND SONORA MEXICO OVERALL THE GROUP HAS EARMARKED ABOUT 6 BILLION OF INVESTMENT OVER THE NEXT 10 YEARS MOST OF IT IN DEVELOPING COUNTRIES DAEWOO ELECTRONICS CO FOR EXAMPLE IS BUILDING TWO CONSUMER ELECTRONICS PLANTS IN UZBEKISTAN TO CATER TO THAT MARKET THE FACTORIES ARE PART OF A 30 MILLION JOINT VENTURE DAEWOO PUT UP ITS EQUITY IN CASH ITS GOVERNMENTCONTROLLED PARTNER PAID ITS HALF IN COTTON WHICH DAEWOO'S TRADING ARM SOLD ON THE WORLD MARKET DAEWOO ALSO AGREED TO BUILD A FISHNET PLANT IN BURMA AND DISTRIBUTE THE NETS TO FISHERMEN ALONG THE COUNTRY'S 1674MILELONG COAST THE FISHERMEN WILL PAY FOR THE NETS WITH THEIR SHRIMP CATCHES SOON BURMA'S SHRIMP HARVESTS WILL BE STORED IN A COLDSTORAGE OPERATION CONTROLLED BY DAEWOO AND ITS MINORITY PARTNER THE BURMESE GOVERNMENT WE CAN UTILIZE TECHNOLOGICAL RESOURCES CAPITAL RESOURCES AND LABOR RESOURCES SAYS DAEWOO PRESIDENT KOO KIBUM WHO NEGOTIATED THE AGREEMENT ON THE FISHNET FACTORY WITH BURMA'S MINISTER FOR LIVESTOCK THAT IS WHAT WE THINK ABOUT IN TERMS OF GLOBALIZATION BUT ANALYSTS AND ECONOMISTS WORRY THAT SUCH A STRATEGY IS AS SHORTSIGHTED AS IT IS FARFLUNG THEY SAY THE SOUTH KOREAN CONGLOMERATES' SUCCESS IN DEVELOPING COUNTRIES HAS OBSCURED THEIR SHORTCOMINGS IN THE MARKETS THAT COUNT JAPAN NORTH AMERICA AND EUROPE INDEED MANY SOUTH KOREAN MANUFACTURERS HAVE BEEN SLOW TO ADOPT MARKETING AND SERVICE TECHNIQUES THAT HAVE HELPED THEIR US AND JAPANESE RIVALS REMAIN COMPETITIVE RISING INFLATION AND LABOR COSTS MEANWHILE HAVE ERASED THEIR PRICE ADVANTAGE SOUTH KOREAN COMPANIES SAY THEY ARE FUNNELING REVENUE FROM RISING EXPORT SALES INTO RESEARCH AND DEVELOPMENT IN LINE WITH AN OFFICIAL CAMPAIGN TO PROMOTE DOMESTIC HIGHTECH INDUSTRIES PRIVATELY HOWEVER INDUSTRIALISTS SAY THE GOVERNMENT'S TIGHT CONTROL OF THE FINANCIAL SYSTEM WHICH HAS MAINTAINED PERSISTENTLY HIGH INTEREST RATES MAKES SUCH INVESTMENT A LUXURY THE GOVERNMENT HAS VOWED TO LOOSEN ITS GRIP ON THE BANKING SECTOR BUT ACKNOWLEDGES THAT THE PROCESS WILL BE A LONG ONE MEANWHILE ECONOMISTS SAY THE SPURT IN SOUTH KOREAN EXPORTS IS LIKELY TO BE BRIEF EVEN INDUSTRIALISTS AND ECONOMIC PLANNERS SAY THEY EXPECT FIERCE COMPETITION IN DEVELOPING MARKETS WITHIN THE NEXT FIVE YEARS POSSIBLY FROM THEIR OWN JOINTVENTURE PARTNERS WE HAVE TO BE CONCERNED ABOUT THAT ASPECT SAYS CHANG HYENSHIK A DIRECTOR AT THE MINISTRY OF TRADE INDUSTRY AND ENERGY COMPANIES WHEN THEY TRANSFER TECHNOLOGY OFTEN FACE NEGATIVE EFFECTS BUT IF WE DON'T TRANSFER THE TECHNOLOGY SOMEONE ELSE WILL 9307060172 930706 WHO'S NEWS WILLIAMS CONTROLS INC WILLIAMS CONTROLS INC PORTLAND ORE JOSEPH HOVORKA 62 YEARS OLD RESIGNED AS PRESIDENT OF THIS VEHICLE PARTS MAKER HIS DUTIES WILL BE ASSUMED BY THOMAS ITIN 58 CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9307060171 930706 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS JULY 619 A NEW PERMANENT EXHIBIT OF THE LARGEST MOUNTED DINOSAUR IN THE WORLD STANDING MORE THAN FOUR STORIES HIGH THE GIRAFFELIKE DINOSAUR WAS EXCAVATED IN WESTERN COLORADO IN 1900 BY MUSEUM PALEONTOLOGIST ELMER RIGGS IT LIVED DURING THE JURASSIC PERIOD AND WAS 75 FEET LONG AND WEIGHED ABOUT 85 TONS FIELD MUSEUM OF NATURAL HISTORY ROOSEVELT ROAD AT LAKE SHORE DRIVE 312 9229410 THIS SHOW EXAMINES THE INFLUENCE OF CLASSICAL GREECE AND ROME ON EARLY AMERICAN DECORATIVE ARTS AMONG THE MORE THAN 250 OBJECTS INSPIRED BY CLASSICAL CULTURE AND FORMS ARE PAINTINGS SILVER SCULPTURES GLASS CERAMICS AND TEXTILES THERE IS FURNITURE AS WELL SUCH AS THE ELABORATELY CARVED AND GILT GRECIAN COUCH MADE IN NEW YORK AROUND 1820 BALTIMORE MUSEUM OF ART ART MUSEUM DRIVE THROUGH SEPT 26 410 3967100 THE SHOW THEN TRAVELS TO THE MINT MUSEUM OF ART IN CHARLOTTE NC NOV 20 1993MARCH 13 1994 AND THE MUSEUM OF FINE ARTS HOUSTON MAY 1JULY 24 1994 MORE THAN 100 OBJECTS DATING FROM THE MID19TH CENTURY TO THE MID20TH CENTURY TRACING THE USE OF THE AMERICAN FLAG AS A DESIGN ELEMENT IN THE CLOTHING ARTIFACTS AND ART OF AMERICAN INDIANS THE SHOW ILLUSTRATES HOW THE FLAG WAS APPROPRIATED FROM THE EUROPEAN SETTLERS AND INCORPORATED INTO INDIAN CULTURE WHERE IT TOOK ON VARIOUS SYMBOLIC MEANINGS THE OBJECTS MADE FOR CEREMONIAL UTILITARIAN AND RECREATIONAL PURPOSES ARE ALL FROM THE EUGENE AND CLARE THAW COLLECTION AND THE JOEL AND KATE KOPP COLLECTION NEW YORK STATE HISTORICAL ASSOCIATION'S FENIMORE HOUSE ONE MILE NORTH OF COOPERSTOWN ON ROUTE 80 THROUGH DEC 31 607 5472533 THE SUMMER SEASON BEGINS WITH MARTHA CLARKE'S PRODUCTION OF MOZART'S COSI FAN TUTTE ON JULY 10 ALSO JULY 12 16 18 23 29 AUG 8 AND 14 ROBERT ISRAEL HAS DESIGNED THE SETS AND RANSOM WILSON CONDUCTS A CAST INCLUDING JING WEI PAUL GROVES MARY DELLI COLLI AND ERICH PARCE NOT QUITE AS SUBLIME BUT FUNNY FOR SURE IS THE NEXT NIGHT'S VENTURE ROSSINI'S LE COMTE ORY DIRECTED BY KEITH WARNER AND INCLUDING CHERYL PARRISH PAUL AUSTIN KELLY AND EMILY GOLDEN IN THE CAST JULY 11 15 19 25 31 AUG 5 13 AND 16 AFTER THAT THERE IS A PREMIERE THE MIDNIGHT ANGEL BY DAVID CARLSON WITH DIRECTION BY LINDA BROVSKY AND STEWART ROBERTSON ON THE PODIUM JULY 17 22 26 AUG 1 AND 6 THE LAST OFFERING IS MASSENET'S TEARY WERTHER DIRECTED BY MARK LAMOS AND FEATURING GRAN WILSON AND CHARLOTTE HELLEKANT AS WHO ELSE CHARLOTTE JULY 24 30 AUG 2 7 9 12 AND 15 ALICE BUSCH OPERA THEATER NORTH OF COOPERSTOWN ON ROUTE 80 THE ANNUAL FESTIVAL GETS UNDERWAY ON JULY 6 WITH A MOZART AND MENDELSSOHN EVENING CONDUCTED BY GERARD SCHWARZ AND FEATURING PIANIST ANDRE WATTS SOPRANO JUNE ANDERSON AND VIOLINIST JOSHUA BELL ALSO ON JULY 7 OTHER HIGHLIGHTS INCLUDE AN APPEARANCE BY VIOLINIST NADJA SALERNOSONNENBERG JULY 9 AND 10 AND MEGADIVA CECILIA BARTOLI SINGING PARTO PARTO FROM MOZART'S LA CLEMENZA DI TITO AUG 20 AND 21 AVERY FISHER HALL LINCOLN CENTER BROADWAY BETWEEN 62ND AND 65TH STREETS THROUGH AUG 21 212 8755030 THE 21ST SEASON BEGINS WITH A GALA EVENING ON JULY 16 WITH SOPRANO BENITA VALENTE GUITARIST SHARON ISBIN AND PIANIST URSULA OPPENS MS OPPENS ALSO JOINS LAURENCE LESSER FOR THE BARBER SONATA FOR CELLO AND PIANO JULY 18 AND 19 WHILE THE PROGRAM ON JULY 30 PRESENTS TWO WORKS BY BRIGHT SHENG THIS SUMMER'S COMPOSER IN RESIDENCE THE STREAM FLOWS TWO PIECES FOR SOLO VIOLIN AND TWO POEMS FROM THE SUNG DYNASTY SUNG BY SHERYL WOODS AND CONDUCTED BY HEIICHIRO OHYAMA 9307060170 930706 INTERNATIONAL MANY JAPANESE ARE DISMAYED TO SEE MIYAZAWA BASKING IN G7 LIMELIGHT BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AS PRIME MINISTER KIICHI MIYAZAWA PREPARES TO HOST THIS WEEK'S HIGHPROFILE INTERNATIONAL SUMMIT IN TOKYO MANY JAPANESE ARE WINCING WITH EMBARRASSMENT AT THE THOUGHT OF THEIR LAMEDUCK LEADER IN THAT ROLE LOOK WHAT HE'S BROUGHT JAPAN TO IT'S SO UNSIGHTLY I FEEL ASHAMED SAYS FUMIKO KOTODA A 30YEAROLD OWNER OF A BROILEDEEL RESTAURANT IN SOUTHERN TOKYO BUT WHAT CAN WE DO WE DON'T HAVE TIME TO CHOOSE SOMEBODY ELSE SINCE A NOCONFIDENCE VOTE BROUGHT DOWN MR MIYAZAWA'S GOVERNMENT LAST MONTH THE PRIME MINISTER HAS BECOME AN OBJECT OF POPULAR CRITICISM EVEN MOCKERY HOUSEWIVES CALL HIM IRRESPONSIBLE AND A POOR LEADER TABLOIDS BERATE HIM FOR KEEPING A GRIN ON HIS FACE EVEN AFTER HE FAILED TO PASS A POLITICAL REFORM BILL HE HAD PROMISED TO IMPLEMENT RIVAL POLITICIANS CALL HIM A LIAR FOR FAILING TO DELIVER THE MEASURE THE ASAHI SHIMBUN A MAJOR DAILY RAN A CARTOON SHOWING MR MIYAZAWA HAVING HIS TONGUE YANKED OUT WITH A PAIR OF TONGS A TORTURE SAYS JAPANESE FOLKLORE THAT THE KING OF HELL INFLICTS ON CHILDREN WHO TELL LIES MR MIYAZAWA'S POPULARITY IS NOSEDIVING AT A TIME WHEN JAPAN IS FACING INTENSE PRESSURE TO OPEN ITS MARKETS AND REDUCE ITS TRADE SURPLUS MANY CITIZENS SAY THEY BELIEVE MR MIYAZAWA CAN'T STRIKE ANY MAJOR DEALS WITH FOREIGN LEADERS THIS WEEK BECAUSE JAPANESE NATIONAL ELECTIONS ARE SCHEDULED FOR JULY 18 MAKING THE PRIME MINISTER A DEAD BODY AS THE JAPANESE CALL LAME DUCKS THE CHIEFS OF THE GROUP OF SEVEN INDUSTRIALIZED NATIONS BEGIN THEIR THREEDAY MEETING WEDNESDAY IN TOKYO PEOPLE AREN'T ANGRY AT HIM BUT THEY'VE LOST ALL HOPE SAYS HISAYUKI MIYAKE A POLITICAL COMMENTATOR IN TOKYO THE SUMMIT IS HIS LAST ACT AFTER THAT THEY WANT HIM TO QUICKLY STEP DOWN LESS THAN 3 OF JAPANESE FEEL MR MIYAZAWA SHOULD CONTINUE AS PRIME MINISTER AFTER THE ELECTIONS ACCORDING TO A RECENT POLL BUT MR MIYAZAWA ISN'T THE ONLY G7 LEADER FLAILING IN THE POLLS AND SOME JAPANESE POINT OUT MR MIYAZAWA IS FLUENT IN ENGLISH AND AN OLD HAND AT MULTINATIONAL TALKS THEY BELIEVE HE WILL DO A BETTER JOB AS SUMMIT POINT MAN THAN MOST JAPANESE POLITICIANS IF HE'S GOT TO BE THERE ANYWAY I HOPE AT LEAST HE'S GOING TO SPEAK A LOT OF ENGLISH TO BURNISH JAPAN'S IMAGE SAYS KATSUMI OSANAI A 19YEAROLD STUDENT THESE DAYS THOUGH KIND WORDS ARE FEW AND FAR BETWEEN FOR JAPAN'S LEADER A CAREER TECHNOCRAT WITH A HAUGHTY PROFESSORIAL MANNER EVEN AVID BACKERS OF THE RULING LIBERAL DEMOCRATIC PARTY ARE GIVING THE COLD SHOULDER TO MR MIYAZAWA WHO IS THE HEAD OF THE PARTY KEISAKU SHIOHARA 55 CLAPS AND CHEERS WITH OTHER RANKANDFILE LDP SUPPORTERS WHILE HIS FAVORITE LDP POLITICIAN GIVES A CAMPAIGN SPEECH IN SUBURBAN TOKYO BUT AS SOON AS HE SEES MR MIYAZAWA RUSH OUT TO MAKE A FOLLOWUP SPEECH FOR THE CANDIDATE MR SHIOHARA LETS OUT A GROAN OH WHY DID HE CHOOSE TO COME AND SPEAK HERE HE SAYS MR SHIOHARA FEARS THAT THE PRIME MINISTER'S PRESENCE WILL DO THE CANDIDATE MORE HARM THAN GOOD A SPOKESMAN FOR THE LDP SAYS THE PARTY STILL SUPPORTS MR MIYAZAWA THE PRIME MINISTER FOR HIS PART SAYS HE'S DETERMINED TO FIGHT BACK HE SAYS HE WILL CONCENTRATE HIS EFFORTS ON REGAINING POLITICAL SUPPORT EVEN IF I HAVE TO DIG MY NAILS INTO ROCKS MR MIYAZAWA'S TENACITY NOTWITHSTANDING FEW PEOPLE EXPECT HIM TO HOLD ON VERY LONG USUALLY A JAPANESE PRIME MINISTER SPENDS HIS DAYS BEFORE A NATIONAL ELECTION RUNNING AROUND THE NATION TO STUMP FOR OTHER LDP CANDIDATES BUT HE WAS ASKED TO STAY AWAY FROM THE KICKOFF LDP RALLY FOR LAST MONTH'S TOKYO MUNICIPAL ELECTIONS AND AN LDP SPOKESMAN SAYS THAT HIS CAMPAIGN SCHEDULE AFTER THE SUMMIT IS STILL UNDECIDED MR MIYAZAWA PROBABLY THINKS THAT NOW THAT HE HAS NOTHING MORE TO LOSE HE CAN START ALL OVER AGAIN SAYS TAKEFUMI TATEWAKI A 30YEAROLD EMPLOYEE OF A MOTORCYCLE MANUFACTURER I DON'T KNOW I'VE BEEN DISAPPOINTED BY HIM TIME AND TIME AGAIN 9307060169 930706 BANK OF CALIFORNIA SETTLES SEC ACTION ON PRICING ERROR BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION SAID INADEQUATE INTERNAL CONTROLS AT THE BANK OF CALIFORNIA LED TO SIGNIFICANT OVERPRICING OF A TAXEXEMPT BOND FUND FOR WHICH THE BANK ACTED AS ACCOUNTANT THE AGENCY IN AN ADMINISTRATIVE PROCEEDING SAID THE BANK'S PRICING ERRORS CAUSED THE BOND FUND OPERATED BY HIGHMARK GROUP TO VIOLATE THE PRICING BOOKS AND RECORDS PROVISIONS OF THE INVESTMENT COMPANY ACT REGULATING INVESTMENT COMPANY SECURITIES THE OVERPRICING OCCURRED FOR FIVE WEEKS IN THE SUMMER OF 1991 THE SAN FRANCISCOBASED BANK SETTLED THE SEC'S PROCEEDING WITHOUT ADMITTING OR DENYING THE AGENCY'S FINDINGS UNDER THE SETTLEMENT THE BANK AGREED TO CEASE AND DESIST FROM VIOLATING THE LAW AND TO AVOID FUTURE VIOLATIONS NO PENALTIES WERE IMPOSED AGAINST THE BANK THE FUND WASN'T ACCUSED OF ANY WRONGDOING THE BANK SAID IN A STATEMENT THAT THE MISPRICING STEMMED FROM AN UNLIKELY SET OF CIRCUMSTANCES WHICH INCLUDED A CLERICAL CODING ERROR AND A FAILURE BY AN EMPLOYEE TO FOLLOW WELLESTABLISHED PROCEDURES AND POLICIES THE BANK SAID THE FUND WAS MADE WHOLE AND NO INVESTOR INCURRED A LOSS THAT IMMEDIATE CORRECTIVE ACTION WAS TAKEN WHEN THE MISPRICING WAS DISCOVERED AND THAT ITS COMPLIANCE PROCEDURES WERE REVIEWED AND WHERE APPROPRIATE WERE STRENGTHENED SEC COMMISSIONER RICHARD ROBERTS SAID THE PROCEEDING SHOULD EMPHASIZE TO ALL MONEYMARKET FUNDS SPECIFICALLY TO TAXEXEMPT FUNDS AND TO THE FUNDS' ADVISERS AND PROVIDERS OF ADMINISTRATIVE SERVICES THE IMPORTANCE OF HAVING ADEQUATE INTERNAL CONTROLS THE COMMISSION EXPECTS ALL MONEYMARKET FUNDS AND THEIR ADVISERS WHETHER TAXABLE OR TAXEXEMPT TO COMPLY WITH THE APPLICABLE REQUIREMENTS OF THE INVESTMENT COMPANY ACT ROBERTS SAID THE BANK OF CALIFORNIA SERVED AS THE FUND ACCOUNTANT FOR THE INVESTMENT PORTFOLIOS OF HIGHMARK GROUP AND AS INVESTMENT ADVISER TO THE GROUP IT WAS RESPONSIBLE FOR CALCULATING THE NET ASSET VALUE PER SHARE OF A TAXFREE BOND FUND OPERATED BY THE GROUP ACCORDING TO THE SEC THE BOND FUND HELD TAXFREE HOUSING BONDS ISSUED BY THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF PHOENIX THESE BONDS WERE BACKED BY MUTUAL BENEFIT LIFE INSURANCE CO OF NEWARK NJ WHICH WAS SEIZED BY NEW JERSEY AUTHORITIES TWO YEARS AGO THE INSURER COULDN'T HONOR THE PHOENIX BOND GUARANTEE CAUSING A SIGNIFICANT DROP IN THE MARKET PRICE OF THE PHOENIX SECURITIES THE SEC SAID IN AUGUST 1991 COUNSEL FOR THE FUND INFORMED THE STAFF OF THE COMMISSION THAT FOR APPROXIMATELY A FIVEWEEK PERIOD THE BANK HAD ERRONEOUSLY PRICED THE PHOENIX BOND IN THE FUND'S PORTFOLIO AT 42 MORE THAN ITS MARKET VALUE THE SEC SAID IT SAID THE REPEATED MISPRICING WAS CAUSED BY THE BANK'S FAILURE TO HAVE AN ADEQUATE SYSTEM OF INTERNAL CONTROLS 9307060168 930706 WHO'S NEWS HARMAN INTERNATIONAL INDUSTRIES INC HARMAN INTERNATIONAL INDUSTRIES INC WASHINGTON THIS MAKER OF AUDIO PRODUCTS SAID CARY CHRISTIE CORPORATE VICE PRESIDENT OF MARKETING RESIGNED TO FORM HIS OWN DESIGN CONCERN THE COMPANY ALSO ANNOUNCED THAT WALTER GOODMAN PRESIDENT OF THE INTERNATIONAL DIVISION RETIRED 9307060167 930706 QUARTERLY MUTUAL FUNDS REVIEW MARKET GURUS FAVOR HEAVY INDUSTRY SHUN CONSUMER STOCKS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL NO FOOD OR BEVERAGES THANKS I'M ON A STRICT DIET THAT SEEMS TO BE THE PORTFOLIO MANAGERS' CREDO THESE DAYS FIVE BIG MUTUALFUND MANAGERS INTERVIEWED FOR THIS ARTICLE WERE UNANIMOUS IN GOING LIGHT ON CONSUMER STOCKS SUCH AS FOOD BEVERAGE AND TOBACCO ISSUES INSTEAD MOST OF THEM ARE PARTIAL TO INDUSTRIALS TELCOMMUNICATIONS AND OIL STOCKS THE CONSUMER IS BECOMING A LOT MORE PRICECONSCIOUS SAYS THOMAS S HENDERSON MANAGER OF AFFILIATED FUND WE THINK THAT'S GOING TO LAST QUITE A WHILE AT FIDELITY GROWTH & INCOME FUND MANAGER STEVEN KAYE DOESN'T OWN A SINGLE FOOD OR TOBACCO STOCK AT PHOENIX BALANCED FUND MANAGER PATRICIA BANNAN HAS VERY LITTLE IN THE GROUP THOUGH SHE DOES OWN SOME PEPSICO INC CONSUMERGOODS SELLERS USED TO HAVE LOTS OF PRICING FLEXIBILITY SHE SAYS BUT THE NEXT DECADE IS NOT GOING TO BE AS EASY AS LAST DECADE IF THIS THESIS SOUNDS FAMILIAR ONE REASON MAY BE THAT IT WAS EXPOUNDED IN THIS SPACE NINE MONTHS AGO BY JEFFREY VINIK MANAGER OF THE FIDELITY MAGELLAN FUND THE US'S LARGEST MUTUAL FUND IT SOUNDED RADICAL AT THE TIME BUT SINCE THEN MR VINIK'S IDEA HAS BECOME ALMOST AN ACCEPTED MAXIM AMONG MONEY MANAGERS ALL FIVE MUTUALFUND MANAGERS ARE GIVING DRUG STOCKS ONLY A LIGHT WEIGHT IN THEIR PORTFOLIOS THAT'S PARTLY BECAUSE OF UNCERTAINTY ABOUT THE PENDING CLINTON ADMINISTRATION HEALTH PLAN AND PARTLY BECAUSE OF DOUBTS THAT DRUG COMPANIES WILL BE ABLE TO RAISE PRICES IN THE FUTURE AS THEY DID IN THE 1980S YET WITH DRUGSTOCK PRICES DOWN ABOUT 30 SINCE EARLY 1992 SOME OF THE MANAGERS CAN'T RESIST A BIT OF NIBBLING FOR EXAMPLE CHARLES P MAYER OF FINANCIAL INDUSTRIAL INCOME FUND HAS ALREADY BOUGHT SOME SCHERINGPLOUGH CORP AND SMITHKLINE BEECHAM PLC MR HENDERSON OF AFFILIATED FUND OWNS AMERICAN HOME PRODUCTS CORP BRISTOLMYERS SQUIBB CO AND AMERICAN CYANAMID CO WHICH HE SAYS IS NOW MORE A DRUG COMPANY THAN A CHEMICAL COMPANY HERE'S A LOOK AT WHAT THE FIVE MANAGERS ARE DOING WITH THEIR PORTFOLIOS THE PERFORMANCE FIGURES SHOWN ARE FOR THE LATEST QUARTER MR KAYE TOOK OVER FIDELITY GROWTH & INCOME FUND THE BOSTON MUTUAL FUND GIANT'S THIRDLARGEST STOCK FUND ONLY IN JANUARY BUT HE SOUNDS LIKE AN OLD HAND AS HE TALKS ABOUT HIS PHILOSOPHY OF STAYING FULLY INVESTED THE MARKET'S GOING TO GO UP THE MARKET'S GOING TO GO DOWN SAYS MR KAYE BUT OVER THE LONG TERM THE MARKET'S GONE UP ABOUT 9 TO 10 A YEAR SURE STOCKS WILL SWOON 10 TO 20 AT TIMES BUT TYPICALLY THOSE ARE GREAT BUYING OPPORTUNITIES HE DOES SEE SOME WARNING FLAGS WITH STOCKS SELLING FOR VERY HIGH VALUATIONS BUT HE IS ONLY SLIGHTLY CAUTIOUS RATHER THAN BUILD UP A CASH CUSHION AGAINST A DECLINE HE HAS A SIZABLE POSITION IN UTILITY STOCKS KNOWN FOR THEIR STABILITY PLUS A SPRINKLING OF BONDS IF THE STOCK MARKET FALLS HE'D SELL THOSE HOLDINGS AND BUY STOCKS FINANCIAL STOCKS SUCH AS CITICORP MELLON BANK CORP AND PRIMERICA CORP ARE MAINSTAYS IN MR KAYE'S PORTFOLIO WHEN EASTMAN KODAK HIRED THE RENOWNED COSTCUTTER CHRISTOPHER STEFFEN AS CHIEF FINANCIAL OFFICER EVERYONE THOUGHT THAT HE WAS GOING TO SAVE THE DAY MR KAYE SAYS BUT WHEN CITICORP RECENTLY HIRED THE SAME MR STEFFEN WHO LEFT KODAK AFTER A POLICY DISAGREEMENT CITICORP SHARES BARELY MOVED MR KAYE OBSERVES HE THINKS INVESTORS ARE UNDERESTIMATING BOTH CITICORP AND MR STEFFEN MR KAYE IS ALSO FOND OF THE REGIONAL BELL TELEPHONE COMPANIES A LOT OF PEOPLE THINK THEY'RE GOING TO GET SLAUGHTERED BY THE TIME WARNERS OF THE WORLD IE CABLE COMPANIES HE SAYS I DON'T BELIEVE IT THE BELLS ARE GOING TO SURPRISE PEOPLE WHICH GIVES YOU BETTER SERVICE YOUR CABLE COMPANY OR YOUR PHONE COMPANY HE LIKES CHRYSLER WHICH IS GAINING MARKET SHARE AGAINST THE JAPANESE WITH ITS NEW MODELS SUCH AS THE LH CARS THE JEEP GRAND CHEROKEE AND THE NEON HE FAVORS DEFENSE STOCKS BECAUSE THEY ARE CHEAP RAYTHEON MARTIN MARIETTA GRUMMAN AND HE'S TAKING A PLUNGE INTO A COUPLE OF GAMBLING STOCKS AZTAR CAESAR'S WORLD THE BIG RISK FOR 1993 INVESTMENT EXPOSURE TO EUROPE AND JAPAN IS THE BIG OPPORTUNITY FOR 1994 SAYS MR HENDERSON SO HE'S TRYING A BALANCING ACT HE IS HOLDING ONTO THE SHARES OF BIG US COMPANIES WITH HEAVY FOREIGN OPERATIONS SUCH AS GENERAL ELECTRIC CO MINNESOTA MINING & MANUFACTURING CO MOTOROLA INC FORD MOTOR CO AND BRISTOLMYERS SQUIBB BUT WITH RECESSIONS OVERSEAS HE ISN'T BUYING ANY MORE OF THOSE STOCKS AT THE MOMENT MR HENDERSON HAS 52 OF HIS PORTFOLIO IN CYCLICAL STOCKS THOSE THAT RISE AND FALL WITH THE TIDES OF THE ECONOMY THE MARKET HAS NEVER GOTTEN VERY ENTHUSIASTIC ABOUT THIS ECONOMIC EXPANSION MR HENDERSON SAYS THAT KEEPS MOST OF THESE CYCLICAL STOCKS CHEAP HE LIKES AUTO STOCKS FORD MOTOR IN PARTICULAR THINGS ARE GOING VERY WELL FOR FORD DOMESTICALLY HE SAYS IN ADDITION TO THE ECONOMIC RECOVERY THE AUTO FLEET IN THE US IS AT AN ADVANCED AGE SPENDING ON AUTOS RELATIVE TO PERSONAL INCOME IS LOW HISTORICALLY FINANCING COSTS ARE DOWN AND USEDCAR PRICES ARE GOING UP ALSO WITH THE YEN STRONG US CAR MAKERS DON'T HAVE TO WORRY ABOUT BEING UNDERCUT ON PRICE BY JAPANESE COMPETITORS OVERALL MR HENDERSON THINKS STOCKS COULD NOTCH A 12 TO 15 ADVANCE BY SUMMER 1994 PROPELLED IN PART BY YET ANOTHER ROUND OF FALLING INTEREST RATES WHY US INFLATION IS LOW HE SAYS AND FOREIGN GOVERNMENTS WILL BE FORCED TO SLICE RATES TO COMBAT RECESSIONS PARTICULARLY IF MR CLINTON AND THE CONGRESS COME THROUGH WITH SOME DEFICIT REDUCTION HE THINKS FALLING RATES COULD BE THE MOST PLEASANT SURPRISE OF THE INVESTMENT YEAR ONE OF THE THINGS I HAVE BEEN DOING THE LAST FEW MONTHS IS GETTING THE FUND'S DIVIDEND YIELD JACKED UP SAYS MR MAYER COMANAGER OF THE FINANCIAL INDUSTRIAL INCOME FUND IN DENVER I THINK THE SECOND HALF'S GOING TO BE KIND OF TOUGH SAYS MR MAYER SO HE FIGURES STOCKS' DIVIDEND YIELDS WILL PROVIDE MUCH IF NOT ALL OF INVESTORS' TOTAL RETURN AS THE NEW FEDERAL BUDGET FALLS INTO PLACE MOST PEOPLE WILL SEE THEIR TAX BILLS GO UP MR MAYER SAYS THAT WON'T MAKE INVESTORS OR CONSUMERS HAPPY AND THE JOLT WILL COME AT A TIME WHEN STOCK MARKET VALUATIONS ARE SOMEWHAT EXTENDED TO BEGIN WITH I'M CERTAINLY NOT CALLING FOR A CRASH MR MAYER SAYS BUT THE TRADITIONAL 5 TO 10 CORRECTION WOULD NOT BE SURPRISING IT'S PROBABLY HEALTHY MR MAYER IS INVESTING HEAVILY IN OIL STOCKS WITH PRODUCTION IN THE US DECLINING AND PRODUCTION IN RUSSIA OBVIOUSLY IN TROUBLE AND MAYBE THE NORTH SEA FLATTENING OUT I THINK IT MAKES OPEC THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES A LITTLE STRONGER MR MAYER SAYS HE OWNS ROYAL DUTCH PETROLEUM CO EXXON CORP ATLANTIC RICHFIELD CO AND BRITISH PETROLEUM CO HE AND COMANAGER JOHN KAWESKE STILL LIKE FINANCIAL STOCKS THOUGH NOT AS MUCH AS THEY USED TO BANK OF NEW YORK CO FLEET FINANCIAL GROUP INC FEDERAL NATIONAL MORTGAGE ASSOCIATION AND COUNTRYWIDE CREDIT INDUSTRIES INC ALL HAVE PLACES IN THE PORTFOLIO MR MAYER ALSO FAVORS RAILROAD STOCKS SUCH AS KANSAS CITY SOUTHERN INDUSTRIES UNION PACIFIC CORP AND CONSOLIDATED RAIL CORP AND CAPITALGOODS STOCKS LIKE INTEL CORP TEXAS INSTRUMENTS INC AND TRINOVA CORP GORDON FINES MANAGER OF IDS NEW DIMENSIONS FUND DOESN'T BELIEVE IN TRYING TO TIME THE MARKET BUT HE'S TAKING A FEW DEFENSIVE STEPS HE CURRENTLY HOLDS ABOUT 80 STOCKS INSTEAD OF HIS NORMAL 60 THE BETTER TO PROTECT HIMSELF AGAINST THE ONEDAY MASSACRES THAT RIP APART INDIVIDUAL STOCKS IF THEY FALL EVEN A NICKEL OR A DIME SHORT OF WALL STREET'S EARNINGS EXPECTATIONS AND HE HAS 14 CASH INSTEAD OF HIS NORMAL 10 THE HIGHER CASH LEVEL HE SAYS IS PARTLY BECAUSE OF UNCERTAINTY SURROUNDING CLINTON'S ECONOMIC PROPOSALS AND HEALTHCARE PROPOSALS AND PARTLY JUST BECAUSE SO MUCH CASH KEEPS ROLLING IN HE THINKS THE MARKET IS IN A TRADING RANGE ENVIRONMENT MORE LIKELY TO RISE THAN FALL BUT MOST LIKELY TO JUST STAY FAIRLY FLAT HIS FAVORITE SECTOR IS TELECOMMUNICATIONS TO ILLUSTRATE HOW FAST INNOVATIONS IN THAT FIELD ARE DEVELOPING HE SUGGESTS THINKING BACK TO THE LAST TIME A DEMOCRAT WAS IN THE WHITE HOUSE 13 YEARS AGO WE DID NOT HAVE FAX MACHINES VOICE MESSAGING SYSTEMS CELLULAR TELEPHONES OR POWERFUL PCS HE SAYS EVERY ONE OF THOSE DEVICES IS A COMMONLY ACCEPTED PART OF OUR LIVES TODAY WHAT'S GOING TO HAPPEN OVER THE NEXT FIVE TO 10 YEARS I HAVE A HUNCH IT WILL CONTINUE TO BE DRAMATIC AMONG THE TELECOMMUNICATIONS STOCKS HE OWNS ARE MCCAW CELLULAR COMMUNICATIONS INC MCI COMMUNICATIONS CORP MOTOROLA AND LM ERICSSON CORP OF SWEDEN RELATED TECHNOLOGY AND ENTERTAINMENT ISSUES HE LIKES ARE CISCO SYSTEMS INC SYNOPTICS COMMUNICATIONS INC CHIPCOM CORP AND TIME WARNER INC NORMALLY MS BANNAN KEEPS HER FUND ABOUT 55 IN STOCKS 35 IN BONDS AND 10 IN CASH BUT RIGHT NOW SHE IS PLAYING IT CAUTIOUS HOLDING ONLY 45 STOCKS AND 28 BONDS WITH A BIG CASH CUSHION OF 27 POLITICAL UNCERTAINTY AND THE LIKELIHOOD OF RISING TAXES BOTHER HER ESPECIALLY AGAINST A BACKDROP OF HIGH VALUATIONS ON STOCKS EQUALLY WORRISOME SHE SAYS WE DON'T HAVE A TREMENDOUS AMOUNT OF CONFIDENCE IN FORECAST EARNINGS FOR CORPORATIONS SO SHE FINDS STOCKPICKING MORE DIFFICULT THAN USUAL A LOT HAS BEEN EXPLOITED SHE SAYS WE CAN'T FIND TREMENDOUS VALUES OUT THERE EVEN SO A COUPLE OF THEMES APPEAL TO HER ONE IS THE ELECTRONIC HIGHWAY THAT WILL BRING INTERACTIVE ENTERTAINMENT AND INFORMATION INTO AMERICA'S HOMES SHE'S RIDING THE ELECTRONIC HIGHWAY VIA SUCH STOCKS AS TIME WARNER WALT DISNEY CO TELECOMMUNICATIONS INC AND AMERICAN TELEPHONE & TELEGRAPH CO ANOTHER THEME IS AMERICAN INTERNATIONAL COMPETITIVENESS BECAUSE OF COSTCUTTING WAGE RESTRAINT AND LOW US INTEREST RATES SHE THINKS MANY AMERICAN COMPANIES THAT USED TO BE AT A DISADVANTAGE IN INTERNATIONAL TRADE NOW CAN COMPETE AMONG HER FAVORITES IN THIS REGARD IS SEMICONDUCTOR POWERHOUSE INTEL GENERAL ELECTRIC AND AMERICAN INTERNATIONAL GROUP ARE ALSO BIG HOLDINGS CONTRARY TO HER USUAL PRACTICE MS BANNAN HAS NO BIG PORTFOLIO BETS ON ANY PARTICULAR INDUSTRY AT THE MOMENT SHE INVOKES AN OLD WALL STREET SAYING WHEN IN DOUBT SPREAD IT OUT 9307060166 930706 CREDIT MARKETS LATIN DEBT TAKES ON ALLURE FOR BIG AND SMALL INVESTORS BY THOMAS T VOGEL JR AND CRAIG TORRES STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK INVESTORS BIG AND SMALL WILL SOON BE HEARING MORE SALES PITCHES FOR LATIN AMERICAN DEBT WHICH SANK BUT QUICKLY REBOUNDED AFTER LAST WEEK'S LEGAL SNAG IN THE NORTH AMERICAN FREE TRADE AGREEMENT AND THE ONCESHUNNED LATIN DEBT MAY BE MET WITH OPEN ARMS WITH THE YIELD ON LONGTERM US TREASURY BONDS HOVERING NEAR A 16YEAR LOWAT 666 ON FRIDAY US INVESTORS OF ALL SIZES SEEM INCREASINGLY WILLING TO SHOULDER EXTRA RISK IN EXCHANGE FOR HIGHER YIELDS LAST WEDNESDAY'S SELLOFF IN MEXICAN DEBT WAS SOON REVERSED BY A WAVE OF BUYING FROM US BARGAIN HUNTERS GT CAPITAL MANAGEMENT IN SAN FRANCISCO ADDED 6 MILLION TO ITS LATIN DEBT PORTFOLIOS EVEN MORE STRIKING WAS THE RESPONSE FROM SMALL INVESTORS WHO POURED ABOUT 5 MILLION LAST WEEK INTO GT CAPITAL MUTUAL FUNDS THAT INVEST IN EMERGINGCOUNTRY DEBT ONE SUCH FUND GT CAPITAL'S STRATEGIC INCOME FUND HAS HAD A TOTAL RETURN OF 1955 SO FAR THIS YEAR THE PRICE OF MEXICO'S SOCALLED BRADY PAR BONDS WEDNESDAY FELL ABOUT 15 POINTS OR 15 FOR A 1000 BOND AFTER A US JUDGE RULED THAT NAFTA WILL REQUIRE AN ENVIRONMENTAL IMPACT STUDY THE YIELD ROSE TO 905 FROM 886 BUT BY FRIDAY HAD SUBSIDED BELOW 9 AGAIN AS INVESTORS RUSHED IN PRICES OF BRADY BONDS FROM VENEZUELA AND ARGENTINA ALSO DIPPED AND RECOVERED BY WEEK'S END BRADY BONDS ARE ISSUED BY DEVELOPING NATIONS IN A DEBT RESTRUCTURING UNDER GUIDELINES FORMULATED BY FORMER TREASURY SECRETARY NICHOLAS BRADY BRADY BONDS OFTEN HAVE AS MUCH AS TWO YEARS OF INTEREST PAYMENTS AND THE PRINCIPAL COLLATERALIZED BY US TREASURY ZEROCOUPON BONDS DESPITE THE NAFTA TURMOIL THE VENEZUELAN STATE OIL COMPANY PETROLEOS DE VENEZUELA SA LAST WEEK ANNOUNCED PLANS TO SELL SOME 13 BILLION OF BONDS TO US INVESTORS THROUGH A UNIT IN THE US CALLED PDV AMERICA INC THE OFFERING LED BY SALOMON BROTHERS INC IS EXPECTED AS EARLY AS THIS WEEK MOREOVER LAST WEEK VAN KAMPEN MERRITT LAUNCHED A UNIT INVESTMENT TRUST THAT WILL HOLD ONLY EMERGINGCOUNTRY BRADY BONDS AND INVITED SMALL INVESTORS TO BUY IN FOR AS LITTLE AS 3250 EACH A UNIT TRUST BUYS A FIXED PORTFOLIO AND HOLDS IT TO MATURITY EARLIER THIS MONTH MORGAN STANLEY ASSET MANAGEMENT INC FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PLANNED 60 MILLION PUBLICLY TRADED CLOSEDEND FUND TO BE CALLED MORGAN STANLEY EMERGING MARKETS DEBT FUND INC A HANDFUL OF OTHER FUNDS ALREADY ARE INVESTING IN LATIN MARKETS MANY US INVESTORS REMAIN CONVINCED THAT NAFTA EVENTUALLY WILL BE APPROVED OTHERS SAY IT REALLY DOESN'T MATTER IN MEXICO THE REFORMS ARE IRREVERSIBLE NAFTA IS NOT THE STORY SAYS SIMON NOCERA PORTFOLIO MANAGER AT GT CAPITAL THE GOVERNMENT GOT OUT OF THE BUSINESS OF WHAT TO PRODUCE AND WHERE TO PRODUCE IT DOES THIS RULING MEAN THAT BEVERAGE COMPANY GRUPO EMBOTELLADOR DE MEXICO SELLS LESS COLA TODAY OR NEXT YEAR ASKS CURTISS BARROWS MANAGER OF THE PHOENIX HIGH YIELD FUND A JUNKBOND FUND THAT BUYS SOME BONDS FROM DEVELOPING NATIONS OF COURSE NOT HE ANSWERS MR BARROWS SAYS HE USED THE DECLINE IN MEXICAN BOND PRICES AS AN OPPORTUNITY FOR BARGAIN HUNTING SOME OF THE BIGGEST US PLAYERS IN THE LATIN AMERICAN DEBT MARKETS EXPECT THE NAFTA RULING TO BE OVERTURNED QUICKLY WE DON'T THINK IT WILL STAND THE TEST OF APPEALS SAYS ROBERT BECKWITT A PORTFOLIO MANAGER AT FIDELITY INVESTMENTS ONE OF THE NATION'S BIGGEST HOLDERS OF MEXICAN GOVERNMENT SECURITIES THE FIRST THING YOU HAVE TO ASK IS IF ANYTHING HAS CHANGED FUNDAMENTALLY IN MEXICO OR ARGENTINA OR VENEZUELA IN ANY OF THESE COUNTRIES WE LIKE IN TERMS OF GOVERNMENT POLICY SAYS MR BECKWITT NOTHING HAS CHANGED IN THEIR POLICIES WHAT'S MORE HE SAYS WITH BILL CLINTON WAFFLING ON SO MANY ISSUES HE HASN'T WAFFLED ON THIS ONE WHICH IS TRULY REMARKABLE ACCORDING TO MR BECKWITT INVESTORS IN LATIN AMERICAN BRADY BONDS STAND TO REAP BIG GAINS IN COMING YEARS AS THESE NATIONS MOVE CLOSER TO INVESTMENTGRADE CREDIT RATINGS IF NAFTA IS APPROVED HE PREDICTS MEXICO WILL BE GIVEN AN INVESTMENTGRADE RATING FOR ITS DOLLARDENOMINATED DEBT AND BRADY BOND YIELDS WILL PLUNGE CREATING HUGE RETURNS FOR INVESTORS WHO ARE BUYING NOW LATIN AMERICAN CORPORATE BONDS ISSUED RECENTLY WERE ALSO JOLTED BUT MOST HAD RECOVERED BY THE END OF THE WEEK ONE OF THESE BONDS A 1 BILLION BENCHMARK ISSUE OF FIVEYEAR NOTES FROM CEMENTOS MEXICOS OR CEMEX THE LARGEST CEMENT COMPANY IN THE AMERICAS IS A GOOD BAROMETER OF THE STRENGTH OF US INVESTOR DEMAND FOR LATIN SECURITIES THE BOND WAS SOLD IN LATE MAY AT A YIELD ABOUT 370 PERCENTAGE POINTS HIGHER THAN FIVEYEAR US TREASURYS DESPITE JITTERS ABOUT THE NAFTA AGREEMENT THE SPREAD HAD NARROWED TO 320 PERCENTAGE POINTS BY LAST FRIDAY A SIGN OF GROWING INVESTOR DEMAND OF 20 REGULAR OR OPENEND MUTUAL FUNDS WITH SIGNIFICANT HOLDINGS IN LATIN AMERICAN BONDS TRACKED BY MORNINGSTAR INC JUST ONE EXPERIENCED A DROP IN ITS NET ASSET VALUE LAST WEDNESDAY AFTER THE RULING WAS ANNOUNCED A NUMBER OF INVESTORS ARE LOOKING THROUGH THE NAFTA PROCESS BECOMING COMFORTABLE WITH THE FUNDAMENTALS IN MEXICO AND QUESTIONING HOW MUCH NAFTA REALLY MATTERS SAYS ROBERT SINCHE DIRECTOR OF GLOBAL FIXED INCOME AT ALLIANCE CAPITAL MANAGEMENT LP ALLIANCE MANAGES 10 FUNDS SPECIALIZING IN THE DEBT OF DEVELOPING NATIONS WITH ABOUT 1 BILLION IN LATIN DEBT ALLIANCE IS A UNIT OF EQUITABLE LIFE ASSURANCE SOCIETY OF THE US A SUBSIDIARY OF EQUITABLE COS MEXICO IS DOING EVERYTHING IT SHOULD TO ATTRACT INVESTORS SAYS FIDELITY'S MR BECKWITT THE COUNTRY HAS MOVED TO CUT TAXES REDUCE GOVERNMENT DEBT CUT ITS DEFICIT REDUCE REGULATION AND FOSTER AN ENTREPRENEURIAL SPIRIT HE SAYS AS LONG AS THOSE FIVE POLICIES CAN STILL WITHSTAND THE MARKET I'LL BE AN INVESTOR THERE EVEN THOUGH VENEZUELA WENT THROUGH THREE PRESIDENTS IN SIX WEEKS RECENTLY SANTIAGO FITTIPALDI AN ANALYST AT IFRLATAM BELIEVES INVESTORS ARE GOING TO LOOK AT THE PETROLEOS DE VENEZUELA DEAL ON THE MERITS OF PDV AND NOT ON THE MERITS OF VENEZUELA VENEZUELAN BOND PRICES PLUNGED IN THE SECOND HALF OF LAST YEAR IN RESPONSE TO POLITICAL TURMOIL BUT INVESTORS HAVE DEVELOPED STRONGER STOMACHS AND DIDN'T PANIC WHEN THE COUNTRY'S PRESIDENT WAS IMPEACHED IN MAY NOBODY IS SAYING THE LATIN DEBT MARKET IS A SOOTHING PLACE TO HAVE MONEY INVESTED IN 1991 FOR EXAMPLE THE SALOMON BROTHERS BRADY BOND INDEX HAD A TOTAL RETURN OF ABOUT 40 BUT IN 1992 THE RETURN DROPPED TO LESS THAN 5 THANKS TO THE POLITICAL TURMOIL IN VENEZUELA ONE OF THE LARGEST BRADYBOND ISSUERS SO FAR THIS YEAR THE SALOMON INDEX IS SHOWING A RETURN OF 1721 DUE IN PART TO AN IMPROVING SITUATION IN VENEZUELA PRICES OF TREASURY NOTES AND BONDS POSTED MODEST GAINS IN REACTION TO A VERY WEAK JUNE EMPLOYMENT REPORT THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 1/4 POINT OR MORE THAN 250 FOR A BOND WITH A 1000 FACE VALUE TO 105 29/32 TO YIELD 666 DOWN FROM 668 ON THURSDAY THE LABOR DEPARTMENT REPORTED THAT NONFARM PAYROLL EMPLOYMENT ROSE JUST 13000 DURING JUNE A 10TH OF THE EXPECTED INCREASE OF 130000 THE UNEMPLOYMENT RATE MEANWHILE EDGED UP TO 70 FROM 69 SIGNS OF ECONOMIC WEAKNESS ARE USUALLY SEEN AS POSITIVE FOR THE BOND MARKET BECAUSE THEY INDICATE THAT INFLATION WON'T BE A THREAT INFLATION HURTS THE RETURNS OF FIXEDINCOME INVESTMENTS THE BEST GAINS WERE POSTED BY SHORTER MATURITIES AS THE JOBS REPORT WAS SEEN AS ERASING ANY RISK OF A FEDERAL RESERVE TIGHTENING THIS SUMMER THE FIVEYEAR NOTE FOR EXAMPLE ROSE 1/4 POINT TO 100 20/32 TO YIELD 497 DOWN FROM 503 THE REPORT WAS UNABASHEDLY A PLUS FOR THE MARKET SAID CARY LEAHEY AN ECONOMIST AT LEHMAN GOVERNMENT SECURITIES THE PRICES OF LONGERTERM SECURITIES WHILE EVENTUALLY MOVING HIGHER WERE HAMPERED SOMEWHAT BY RISING COMMODITY PRICES AND CONCERNS THAT THE SLOWER ECONOMIC GROWTH COULD HINDER EFFORTS TO REDUCE THE BUDGET DEFICIT 9307060165 930706 LETTERS TO THE EDITOR A GENERATION OF DUMMIES HERBERT STEIN'S ADVOCACY OF LEAVING DECISIONS TO PEOPLE WHO HAVE THE BEST OPPORTUNITY AND MOTIVATION TO BE INFORMED ABOUT THEM IS AT BEST A HIGHRISK APPLICATION OF MARKETPLACE TACTICS TO PUBLIC POLICY DECISIONMAKING AND AT WORST A PRESCRIPTION FOR SLAVERY IN HIS ARTICLE THE AGE OF IGNORANCE EDITORIAL PAGE JUNE 11 MR STEIN SEEKS TO CONVINCE THE READER THAT SINCE THE TASK OF BEING INFORMED IS SO OVERWHELMING WE'RE BETTER OFF LEAVING BOTH IT AND THE DECISIONS THAT FLOW FROM IT TO THE GOVERNMENT SPECIALISTS HOW MR STEIN ARRIVES AT THE BELIEF THAT THOSE WITH GREATER KNOWLEDGE ARE GOING TO MAKE THE BEST DECISIONS THAT IS THOSE IN THE PUBLIC INTEREST IS UNCLEAR INDEED THE CASE FOR PRECISELY THE OPPOSITE BELIEF SEEMS MORE COMPELLING IN THE BUSINESS WORLD PLAYERS USE SUPERIOR KNOWLEDGE TO ENRICH THEMSELVES IS IT ANY DIFFERENT IN THE WORLD OF PUBLIC POLICY MR STEIN'S PERPLEXITY OVER THE MODERN PARADOX ARISING FROM THE JEFFERSONIAN CONFLICT BETWEEN IGNORANCE AND FREEDOM CAUSES HIM TO CONCLUDE THAT JEFFERSON WAS WRONG BUT THE PARADOX OF BEING BOTH IGNORANT AND FREE IS EXPLAINABLE JEFFERSON IN HIS WILDEST IMAGINATION WOULD NEVER HAVE GUESSED THAT THE AMERICAN PEOPLE WOULD BE STUPID ENOUGH TO SQUANDER THE ASSET OF THE COMMON CAUSE OUR FREEDOM IS BEING SUSTAINED BY FEEDING OFF OF AND CONSUMING THIS ASSET SIMULTANEOUSLY WE FAIL TO NOURISH THE COMMON CAUSE BY BELIEVING WE ARE FATED TO IGNORANCE IF BELIEF IN A COMMON CAUSE FAILS AND BELIEF IN A DESTINY OF IGNORANCE WINS THE FAILURE OF THIS DEMOCRACY WON'T BE FAR BEHIND IMMEDIATE SUBSTANTIATION OF MR STEIN'S THOUGHTPROVOKING ESSAY WAS PROVIDED WHEN I TURNED THE PAGE TO FIND GERALD SEIB'S REPORT ON A POLL CONCERNING FAMILY VALUES I STAND WITH MR STEIN IN MY AMAZEMENT AT HOW MANY PEOPLE KNOW THE ANSWERS TO THE QUESTIONS PUT FORTH BY POLLSTERS WHILE HE DID NOT REFER TO THIS POLL I SUSPECT MR STEIN MIGHT ALSO BE ASTONISHED THAT THE POLLSTERS KNEW THE CORRECT QUESTIONS TO ASK IN ORDER TO DETERMINE THE STATE OF FAMILY VALUES IN THIS COUNTRY I DON'T KNOW OF COURSE BUT I HAD ALWAYS ASSUMED THAT BEING HONEST LOYAL BRAVE JUST KIND COURTEOUS RESPONSIBLE REVERENT HARDWORKING AND UNSELFISH WERE VALUES TO WHICH CIVILIZED PEOPLE ASCRIBED TO DEMONSTRATE EVEN FURTHER HOW LITTLE I KNEW I EVEN WENT SO FAR AS TO THINK THAT THESE VALUES WERE TAUGHT AT THE KNEE AND SOMETIMES ACROSS THE KNEE OF PARENTS WHO LOVED THEIR CHILDREN AND FELT RESPONSIBLE FOR BUILDING THEIR CHARACTER BECAUSE THEY WERE TAUGHT MAINLY IN THE FAMILY I SOMEHOW DREW THE CONCLUSION THAT THESE WERE FAMILY VALUES IN MY IGNORANCE I DIDN'T KNOW THAT THE TRUE ROOTS OF FAMILY VALUES LIE IN DISTRIBUTING CONDOMS TEENAGE ABORTION RIGHTS ASSISTANCE PROGRAMS WELFARE REFORM POLITICAL IDEOLOGIES GAY RIGHTS PARENTAL LEAVE CHILD SUPPORT AND THE REGULATION OF TELEVISION MR STEIN ATTRIBUTES TO ARTEMUS WARD THE SAYING IT AIN'T WHAT PEOPLE DON'T KNOW THAT HURTS IT'S THE THINGS THEY KNOW THAT AIN'T SO HOWEVER MR STEIN STATES THAT HE CANNOT VERIFY THE SOURCE OF THIS SAYING I STATE AND HEREBY VERIFY THAT JOSH BILLINGS WROTE IT IS BETTER TO KNOW LESS THAN TO KNOW SO MUCH THAT AIN'T SO MR STEIN'S ESSAY IS REMINISCENT OF THOMAS GRAY'S OBSERVATION IN 1742 THAT WHERE IGNORANCE IS BLISS 'TIS FOLLY TO BE WISE LIKE MR STEIN I TOO AM HOOKED ON PUBLIC TELEVISION READ WIDELY AND INTERACT FREQUENTLY WITH WELLINFORMED PEOPLE YET I HAVEN'T THE FOGGIEST IDEA WHY BLOOD IS RED HOW PENICILLIN WORKS WHY MOTHS ARE ATTRACTED TO WOOL BUT INDIFFERENT TO COTTON WHY A RAINBOW IS ARCHED AND WHY THE MILKY WAY IS MILKY I DOTE ON THE BENEFITS OF A BANK MACHINE BUT DON'T ASK ME HOW IT WORKS THE SAME GOES FOR THE AIRPLANE THE INTERNAL COMBUSTION ENGINE AND FAX MACHINE BUT THERE IS A GOOD SIDE TO ALL THIS IGNORANCE THERE ARE SOME THINGS WE SHOULDN'T FEEL GUILTY ABOUT NOT KNOWING OR UNDERSTANDING FOR EXAMPLE THE TECHNICALLY CORRECT NAME FOR GREENLAND IS NOW KALAALLIT NUNAAT WHOSE CAPITAL IS NO LONGER GOTHAB NOW IT'S NUUK 9307060164 930706 WHO'S NEWS CONTINENTAL BANK CORP CONTINENTAL BANK CORP CHICAGO MICHAEL E O'NEILL 46 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER AT THIS BANK HOLDING COMPANY MR O'NEILL WHO HAD BEEN A MANAGING DIRECTOR AT THE BANK IN CHARGE OF ITS RISK MANAGEMENT AND PROPRIETARY TRADING BUSINESS SUCCEEDS HOLLIS W RADEMACHER 57 WHO WILL RETIRE IN OCTOBER 9307060163 930706 CANADIAN STEEL OUTPUT IS OFF OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 260629 METRIC TONS IN THE WEEK ENDED JUNE 26 AN 86 DECLINE FROM 285155 TONS IN THE PREVIOUS WEEK AND A 68 DECLINE FROM 279760 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS 22046 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 6972013 TONS A 33 INCREASE FROM 6750238 TONS A YEAR EARLIER 9307060162 930706 RAMTEK TO ISSUE WARRANT SUNNYVALE CALIF RAMTEK CORP SAID IT AGREED TO ISSUE A WARRANT FOR AS MANY AS ONE MILLION SHARES OF ITS COMMON STOCK TO IOMEGA CORP ROY UTAH IN EXCHANGE FOR A LOAN MADE TO A RAMTEK SUBSIDIARY THE EXERCISE PRICE OF THE WARRANT IS 84 CENTS A SHARE BOTH COMPANIES MANUFACTURE COMPUTER MASSSTORAGE SYSTEMS 9307060161 930706 SPANISH TRADE DEFICIT MADRID SPAIN'S MERCHANDISE TRADE DEFICIT ON A CUSTOMS BASIS SHRANK 30 TO 2319 BILLION PESETAS 179 BILLION IN MAY FROM MAY 1992 THE FINANCE MINISTRY SAID THE TRADE DEFICIT SHRANK 39 IN THE FIRST FIVE MONTHS OF THE YEAR TO 9807 BILLION PESETAS COMPARED WITH THE SAME PERIOD A YEAR EARLIER THE MINISTRY SAID THE MINISTRY DIDN'T PROVIDE YEAREARLIER FIGURES 9307060160 930706 HONG KONG RETAIL SALES RISE HONG KONG RETAIL SALES IN APRIL ROSE 12 TO 132 BILLION HONG KONG DOLLARS US17 BILLION FROM THE YEAR EARLIER AND WERE UP 9 IN TERMS OF VOLUME THE GOVERNMENT ATTRIBUTED THE GROWTH MAINLY TO SPENDING ON CONSUMER DURABLE GOODS CLOTHING AND JEWELRY COMPARED WITH MARCH THE GOVERNMENT SAID RETAIL SALES SLIPPED 3 IN VALUE AND 5 IN VOLUME 9307060159 930706 WARNERLAMBERT SETS PURCHASE MORRIS PLAINS NJ WARNERLAMBERT CO SAID IT AGREED TO ACQUIRE THE CONSUMER HEALTHPRODUCTS BUSINESS OF FISONS PLC IN AUSTRALIA AND NEW ZEALAND FOR 23 MILLION THE ACQUISITION PROVIDES WARNERLAMBERT WITH AN ENTRY INTO THE SKINCARE CATEGORY IN THE REGION WARNER WILL CONTINUE TO MARKET THE LINE OF THERAPUTIC SKINCARE PRODUCTS UNDER THE ROSKEN BRAND NAME 9307060158 930706 CBOT'S CROP TRADING STARTS AN HOUR EARLIER CHICAGO TRADING IN CROP FUTURES CONTRACTS STARTS AN HOUR EARLIER BEGINNING TODAY AT THE CHICAGO BOARD OF TRADE CROP TRADING SESSIONS ARE SCHEDULED TO OPEN AT 830 AM CDT THE CLOSING TIME REMAINS 115 PM FUTURES AND OPTIONS CONTRACTS AFFECTED BY THE NEW OPENING TIME INCLUDE THE CORN WHEAT OATS AND SOYBEAN COMPLEX MOST AGRICULTURAL CONTRACTS AT THE MIDAMERICA COMMODITY EXCHANGE ALSO WILL BEGIN TO TRADE AT 830 AM EFFECTIVE TODAY THE MOVE DOESN'T INCLUDE THE EXCHANGE'S RICE CONTRACT IN ADDITION THE CHICAGO MERCANTILE EXCHANGE PLANS AN EARLIER OPENING TIME FOR ITS LIVESTOCK FUTURES CONTRACTS EFFECTIVE AUG 2 TRADING IN THE CATTLE COMPLEX AND THE HOG COMPLEX WILL OPEN AT 825 AM THE CLOSE OF THE SESSIONS WILL CONTINUE TO BE 1 PM IN A RELATED MOVE THE CHICAGO BOARD OF TRADE IS LOBBYING THE AGRICULTURE DEPARTMENT TO CONSIDER RELEASING ITS MARKETMOVING REPORTS DURING TRADING SESSIONS CURRENTLY THE GOVERNMENT WAITS TO RELEASE ITS AGRICULTURAL SURVEYS AND FORECASTS UNTIL AFTER THE CLOSE OF TRADING HOWEVER THE TIMING OF THE RELEASES GIVES TRADERS AT OVERSEAS MARKETS THE OPPORTUNITY TO TRADE ON THE INFORMATION BEFORE THE CHICAGO EXCHANGES 9307060157 930706 AMERICAN WINS USLONDON ROUTE RELEASED BY USAIR WASHINGTON THE TRANSPORTATION DEPARTMENT AWARDED AMERICAN AIRLINES A PHILADELPHIATOLONDON ROUTE PREVIOUSLY HELD BY USAIR AMERICAN WAS THE ONLY APPLICANT FOR THE ROUTE ACCORDING TO RICHARD MINTZ A SPOKESMAN FOR THE DEPARTMENT USAIR STOPPED SERVING THE ROUTE MAY 1 AS PART OF AN AGREEMENT LINKED TO BRITISH AIRWAYS' PURCHASE OF A MINORITY EQUITY STAKE IN USAIR GROUP INC THE TRANSPORTATION DEPARTMENT IN MARCH APPROVED THE BRITISH AIRWAYS PURCHASE PLAN PROVIDED THAT USAIR DIVEST ITSELF OF THREE ROUTES PHILADELPHIATOLONDON CHARLOTTE NCTOLONDON AND BALTIMORETOLONDON HAD USAIR KEPT THE ROUTES BRITISH AIRWAYS AND USAIR WOULD HAVE SERVED THEM EXCLUSIVELY IN VIOLATION OF US ANTITRUST LAW ACCORDING TO MR MINTZ THE PHILADELPHIATOLONDON ROUTE IS THE FIRST OF THE THREE TO BE REALLOCATED GERARD ARPEY AMERICAN AIRLINES SENIOR VICE PRESIDENT FOR PLANNING ISSUED A STATEMENT THAT THE AIRLINE WILL BEGIN SERVICE AS PROMPTLY AS POSSIBLE HE SAID THE TRANSATLANTIC FLIGHTS WOULD ORIGINATE AND END AT AMERICAN'S HUB IN RALEIGHDURHAM NC WITH A STOP IN PHILADELPHIA THE ROUTE AWARD IS A COUP FOR AMERICAN WHICH HAS BEEN SEEKING MORE ACCESS TO LONDON'S HEATHROW AIRPORT IT ALSO ENABLES THE FORT WORTH TEXAS CARRIER TO BEAT OUT ITS CHIEF US RIVAL TO LONDON UNITED AIRLINES BY GETTING FOR FREE WHAT THE UAL CORP UNIT HAD OFFERED TO BUY FOR 145 MILLION ODDLY AMERICAN IN LATE 1990 PURCHASED THIS VERY ROUTE AS PART OF A PACKAGE OF SIX ROUTES TO LONDON THAT IT AGREED TO ACQUIRE FROM TRANS WORLD AIRLINES FOR 445 MILLION THE TRANSPORTATION DEPARTMENT LATER REJECTED THE SALE OF THREE OF THE ROUTES FOR COMPETITIVE REASONS HOWEVER UNDER PRESSURE FROM THENTWA CHAIRMAN CARL ICAHN AMERICAN WAS FORCED TO PAY THE SAME 445 MILLION FOR THE REMAINING THREE BIDS FOR THE PHILADELPHIATOLONDON ROUTE WERE LIMITED TO AMERICAN AIRLINES A SUBSIDIARY OF AMR CORP BECAUSE UNDER A CURRENT BILATERAL AVIATION AGREEMENT WITH THE UNITED KINGDOM THE ROUTE MUST PASS THROUGH PHILADELPHIA SEVERAL AIRLINES INTERESTED IN PURCHASING A NEW ROUTE TO LONDON INCLUDING UNITED AIRLINES AND WINGS HOLDINGS INC UNIT NORTHWEST SOUGHT TO PERSUADE THE TRANSPORTATION DEPARTMENT TO SEEK A WAIVER FROM THE UK THAT WOULD SHIFT THE US LEG TO ANOTHER CITY BOTH NORTHWEST AND UNITED FLY TO PHILADELPHIA BUT NEITHER FLIES INTERNATIONALLY FROM THAT CITY THE DEPARTMENT WAS UNWILLING TO DO SO BECAUSE IT DIDN'T WANT TO COMPLICATE NEGOTIATIONS TOWARD A NEW BILATERAL AGREEMENT WITH THE UK TALKS ARE SCHEDULED TO BEGIN LATER THIS MONTH THE US IS SEEKING GREATER ACCESS TO LONDON'S HEATHROW WHILE THE UK IS SEEKING GREATER FREEDOM TO INVEST IN US AIRLINES 9307060156 930706 MARKETING & MEDIA HOMESHOPPING STATIONS WIN RIGHT TO BE ON CABLE WASHINGTON IN A VICTORY FOR HOMESHOPPING STATIONS THE FEDERAL COMMUNICATIONS COMMISSION VOTED 21 TO REQUIRE CABLE TELEVISION OPERATORS TO CARRY THE SIGNALS OF LOCAL BROADCASTERS THAT RUN SHOPPING PROGRAMS 24 HOURS A DAY THE FCC SAID HOMESHOPPING BROADCASTS ARE IN THE PUBLIC INTEREST AND QUALIFY FOR THE RIGHT TO BE CARRIED OVER CABLE SYSTEMS THE DECISION WHICH HAD BEEN EXPECTED MEANS THAT SOME CABLE TV OPERATORS MIGHT BE FORCED TO BUMP CABLE PROGRAMMING FROM THEIR LINEUP ACTING CHAIRMAN JAMES QUELLO AND COMMISSIONER ANDREW BARRETT CAST THEIR VOTES IN FAVOR OF THE HOMESHOPPING STATIONS WHILE COMMISSIONER ERVIN DUGGAN DISSENTED SAYING HIS QUARREL IS WITH A REGULATORY PHILOSOPHY THAT SEEMS NO LONGER TO CARE ABOUT QUALITY FCC OFFICIALS SAID THE AGENCY IS LIKELY TO FORMALLY EXAMINE THE TREND TOWARD COMMERCIALISM OF THE AIRWAVES AND WHETHER STATIONS THAT PRIMARILY RUN HOMESHOPPING AND PROGRAMLENGTH ADVERTISEMENTS SHOULD REMAIN ON THE AIR IT COULD TAKE UP THE MATTER LATER THIS YEAR MOST OF THE NATION'S 70 OR SO FULLTIME HOMESHOPPING STATIONS ARE AFFILIATES OF BELEAGUERED HOME SHOPPING NETWORK INC SEVERAL CURRENT AND FORMER HOME SHOPPING EXECUTIVES ARE UNDER INVESTIGATION FOR FINANCIAL DEALINGS 9307060155 930706 SEC INQUIRY OF LOSSES FROM HURRICANE MAY FORCE INSURERS TO RESTATE '92 RESULTS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL SOME PROPERTY AND CASUALTY INSURANCE COMPANIES COULD BE FORCED TO RESTATE 1992 FINANCIAL RESULTS FOLLOWING A BROAD SECURITIES AND EXCHANGE COMMISSION INVESTIGATION INTO WHETHER THEY MASKED SOME OF THEIR LOSSES FROM HURRICANE ANDREW WHICH HIT FLORIDA AND LOUISIANA IN AUGUST 1992 THE INQUIRY FOCUSES ON WHETHER COMPANIES USED A TYPE OF REINSURANCE TO UNDERSTATE THEIR LOSSES FROM RECENT CATASTROPHES IT ISN'T CLEAR YET WHICH COMPANIES USED THE REINSURANCE ARRANGEMENTS BUT SOME STOCK ANALYSTS HAVE ESTIMATED THE TRANSACTIONS ALLOWED THE INSURANCE INDUSTRY AS A WHOLE TO UNDERSTATE ANDREWRELATED LOSSES BY AS MUCH AS 1 BILLION DAMAGES FROM ANDREW COST INSURERS NEARLY 17 BILLION ACCORDING TO INDUSTRY TRADE GROUPS MAKING IT BY FAR THE COSTLIEST INSURANCE LOSS IN HISTORY ALTHOUGH ANY LOWERING OF RESULTS WOULD BE OFFSET BY RESTATED GAINS IN OTHER PERIODS THE ISSUE IS NEVERTHELESS SIGNIFICANT BECAUSE IT RAISES QUESTIONS ABOUT AN INSURER'S UNDERWRITING ABILITY THE SEC'S INTEREST COMES AT A TIME WHEN ACCOUNTING RULE MAKERS ARE TRYING TO DEVISE A MORE PRECISE STANDARD FOR A FORM OF REINSURANCE KNOWN AS FUNDED COVERS IN WHICH AN INSURANCE COMPANY ESSENTIALLY DEPOSITS MONEY WITH A REINSURER TO HELP COVER FUTURE LOSSES TRADITIONALLY AN INSURANCE COMPANY WILL SIMPLY BUY A REINSURANCE POLICY TO HELP DEFRAY SOME OF ITS RISK THE REASON INSURERS USE FUNDED COVERS IS THAT THEY ARE GENERALLY CHEAPER THIS HAS ATTRACTED MORE INTEREST THAN ANYTHING WE'VE DEALT WITH LATELY SAID ALICE SCHROEDER A PROJECT MANAGER AT THE FINANCIAL ACCOUNTING STANDARDS BOARD THE BOARD WILL DISCUSS FUNDED COVERS LATER THIS MONTH IN THE MEANTIME THE SEC IS REVIEWING FINANCIAL STATEMENTS OF EVERY PROPERTY AND CASUALTY INSURER AND HAS ASKED EACH OF THE COMPANIES FOR INFORMATION ON WHETHER THEY USE FUNDED COVER ARRANGEMENTS WE ARE REVIEWING THE INSURANCE COMPANIES FAIRLY CLOSELY SAID JEFFREY SWORMSTEDT THE SEC STAFF ACCOUNTANT ON THE ISSUE WE'RE HAVING ONGOING DISCUSSIONS WITH SEVERAL COMPANIES AT THIS MOMENT HE EXPECTS TO COMPLETE THE REVIEW BY YEAR END FINANCIAL STATEMENTS OF COMPANIES THAT IMPROPERLY REPORTED THEIR RESULTS THROUGH THE USE OF FUNDED COVERS WOULD BE VIEWED BY THE SEC'S STAFF AS BEING FALSE AND MISLEADING WROTE THE COMMISSION'S CHIEF ACCOUNTANT WALTER SCHUETZE IN A LETTER TO THE FASB FUNDED COVERS SOME ACCOUNTANTS ARGUE ARE MORE LIKE BANK ACCOUNTS THAN REINSURANCE CONTRACTS AN INSURER WOULD DEPOSIT MONEY WITH A REINSURANCE COMPANY BUT ON ITS BOOKS ACCOUNT FOR THE DEPOSIT AS AN EXPENSE AS IF IT HAD BOUGHT REINSURANCE INSTEAD OF AS AN ASSET WHEN A CATASTROPHE HITS AND THE COMPANY WITHDRAWS MONEY FROM THE ACCOUNT IT RECORDS THE WITHDRAWAL AS INCOME THUS MASKING THE FULL EXTENT OF THEIR LOSSES ON A HURRICANE HAIL STORM OR OTHER DISASTER FUNDED COVERS CAN ALSO ACT LIKE LOANS IF AN INSURER DIDN'T HAVE ENOUGH MONEY IN THE ACCOUNT TO PAY ALL ITS CLAIMS ON A DISASTER IT WOULD BORROW FROM THE REINSURANCE COMPANY BUT INSTEAD OF BOOKING THE TRANSACTION AS A LIABILITY IT WOULD REPORT THE LOAN AS INCOME AND AS IT PAID OFF THE LOAN OVER TIME REPORT THE PAYMENTS AS EXPENSES PROPONENTS ARGUE THAT FUNDED COVERS ARE A LEGITIMATE MANAGEMENT TOOL BUT SOME STOCK ANALYSTS DISAGREE CALLING FUNDED COVERS AN ACCOUNTING GIMMICK G ALAN ZIMMERMANN OF PRUDENTIAL SECURITIES SAID IF A COMPANY IS A HEAVY USER OF THE REINSURANCE ARRANGEMENTS IT CASTS DOUBT ON THAT COMPANY'S UNDERWRITING SKILLS IF SOME COMPANIES ARE SHOWN TO HAVE BEEN BIG USERS OF FUNDED COVERS IT WILL HAVE NEGATIVE IMPLICATIONS FOR STOCKHOLDERS HE SAID HE SAID BETTER ACCOUNTING RULES ON FUNDED COVERS WILL MAKE IT EASIER TO DISTINGUISH WELLMANAGED COMPANIES FROM WEAKER ONES STOCK ANALYSTS HAVE TRIED WITHOUT SUCCESS TO IDENTIFY WHICH COMPANIES USED THE ARRANGEMENTS NO INSURANCE COMPANIES WILL ADMIT TO HAVING USED IT MR ZIMMERMANN SAID MR SWORMSTEDT DECLINED TO NAME COMPANIES HE SUSPECTS USED FUNDED COVERS BUT HE RULED OUT ALLSTATE CORP OF NORTHBROOK ILL WHOSE FINANCIAL STATEMENTS THE SEC REVIEWED BEFORE THE COMPANY'S 24 BILLION PUBLIC OFFERING LAST MONTH 9307060153 930706 BONNEVILLE POWER SEEKS 146 BOOST IN UTILITY RATES BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL PORTLAND ORE THE BONNEVILLE POWER ADMINISTRATION PROPOSED RATE BOOSTS AVERAGING 146 FOR ITS INDUSTRIAL AND UTILITY CUSTOMERS AN INCREASE THAT WAS PARED BACK FROM EARLIER ESTIMATES BONNEVILLE A FEDERAL AGENCY THAT TRANSMITS AND SELLS HYDROELECTRIC POWER IN SEVEN STATES PRIMARILY IN THE PACIFIC NORTHWEST BLAMED DROUGHT AND THE REGION'S POOR WEATHER OCCURRING EARLIER THIS YEAR FOR THE REQUESTED BOOST FISH AND WILDLIFE CONSERVATION COSTS ALSO CONTRIBUTED TO THE REQUESTED INCREASE THE AGENCY SAID IF BONNEVILLE'S PROPOSED RATES ARE APPROVED BY THE FEDERAL ENERGY REGULATORY COMMISSION LATER THIS YEAR THE AGENCY'S SOCALLED PREFERENCE CUSTOMERS PUBLIC UTILITY DISTRICTS MUNICIPALITIES AND COOPERATIVES WOULD SEE THEIR RATES RISE 157 THAT FIGURE IS SUBSTANTIALLY LESS THAN THE 24 HIKE BONNEVILLE PROJECTED LAST SPRING THE AGENCY SAID IT WAS ABLE TO REQUEST LOWERTHANANTICIPATED INCREASES BECAUSE OF AN UNPRECEDENTED COSTCUTTING PROGRAM THAT INCLUDED PLANS TO TERMINATE TWO MOTHBALLED NUCLEAR POWER PROJECTS IN WASHINGTON STATE COSTREDUCTIONS ALSO INCLUDED THE CLOSING OF DISTRICT OFFICES FOR ITS INDUSTRIAL ALUMINUM CUSTOMERS BONNEVILLE PROPOSED A RATE INCREASE OF 14 IF APPROVED THAT COULD ADD TO THE RED INK FLOWING FROM US ALUMINUM PRODUCERS MOST OF WHOM ARE ALREADY LOSING MONEY OR JUST BREAKING EVEN THIS COMES AT A TIME WHEN THE INDUSTRY CAN ILL AFFORD ANY COST INCREASE SAID THOMAS M VAN LEEUWEN FIRST BOSTON METALS ANALYST HOWEVER WITH ALUMINUM PRICES UP MODESTLY IN RECENT WEEKS HE ADDED THAT IT'S NOT ONEROUS ENOUGH THAT PRODUCERS WOULD COMPLETELY IDLE THEIR CAPACITY THE RATE INCREASE WOULD HAVE TO EXCEED 25 TO FORCE CUTBACKS HE SAID BONNEVILLE SUPPLIES POWER TO MAKE NEARLY 15 MILLION TONS OF ALUMINUM A YEAR OVER A THIRD OF THE US TOTAL SOME OF THAT CAPACITY WAS CURTAILED EARLIER THIS YEAR WHEN THE AGENCY CUT OFF 25 OF THE INDUSTRY'S POWER A FURTHER CUTBACK IN ALUMINUM PRODUCTION WOULD LIKELY BOOST PRICES FOR ALUMINUM BY DIMINISHING THE WORLDWIDE GLUT THE AGENCY ALSO PROPOSED A 134 INCREASE IN THE EXCHANGE RATE PAID MOSTLY BY THE PRIVATE UTILITIES THAT PASS ON BONNEVILLE'S POWER TO THEIR RESIDENTIAL AND FARM CUSTOMERS BONNEVILLE SAID THE AMOUNT OF THE INCREASE PASSED ON TO RESIDENTIAL CONSUMERS DEPENDS ON HOW MUCH POWER A UTILITY BUYS FROM THE AGENCY DANA MILBANK IN PITTSBURGH CONTRIBUTED TO THIS ARTICLE 9307060152 930706 WHO'S NEWS BOEHRINGER MANNHEIM INTERNATIONAL BOEHRINGER MANNHEIM INTERNATIONAL LONDON JOHN L BRUENS 36 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT BUSINESS DEVELOPMENT AT BOEHRINGER MANNHEIM PHARMACEUTICALS CORP THE ROCKVILLE MD PHARMACEUTICAL AND BIOTECHNOLOGY RESEARCH ARM OF THIS PRIVATELY HELD NETWORK OF HEALTHCARE COMPANIES MR BRUENS HAD BEEN A DIRECTOR AT ALPHA THERAPEUTIC CORP IN LOS ANGELES 9307060151 930706 ZAPATA TO GIVE BOARD SEATS TO FIRM'S LARGEST HOLDER HOUSTON ZAPATA CORP REACHED AN AGREEMENT WITH ITS LARGEST SHAREHOLDER MALCOLM GLAZER TO GIVE HIM AND HIS SON AVRAM SEATS ON THE COMPANY'S EIGHTMEMBER BOARD AND IN RETURN MR GLAZER AGREED TO DROP HIS PROXY FIGHT WITH THE COMPANY MR GLAZER HAD WAGED A FIGHT TO WIN THREE SPOTS ON THE BOARD INCLUDING THE SEAT BELONGING TO ZAPATA CHAIRMAN RONALD LASSITER MR LASSITER DELAYED A SHOWDOWN AT ZAPATA'S ANNUAL MEETING LAST WEDNESDAY BY POSTPONING THE MEETING UNTIL FRIDAY SO HE COULD NEGOTIATE A SETTLEMENT WITH MR GLAZER AT FRIDAY'S MEETING MR LASSITER ANNOUNCED THE AGREEMENT WHICH ALSO KEPT HIM ON THE BOARD THE BOARD ALSO ELECTED KRISTIAN SIEM ANOTHER LARGE ZAPATA SHAREHOLDER AS A DIRECTOR ZAPATA WHICH SOLD OFF ITS OILDRILLING RIGS SEVERAL YEARS AGO IS NOW ONE OF THE COUNTRY'S BIGGEST PRODUCERS OF FISH MEAL THE COMPANY HAS ALSO EXPANDED INTO THE NATURALGAS TRANSMISSION BUSINESS THROUGH A SERIES OF ACQUISITIONS 9307060149 930706 GERMANY FINDS DOCUMENTS THAT BOLSTER GM UNIT'S POSITION IN DISPUTE WITH VW BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL BONN GERMAN PROSECUTORS SAID THEY STUMBLED ONTO A CACHE OF DOCUMENTS THAT BOLSTER ACCUSATIONS BY ADAM OPEL AG THE GERMAN UNIT OF GENERAL MOTORS CORP THAT A GROUP OF FORMER OPEL AND GM EMPLOYEES TOOK CONFIDENTIAL MATERIALS WHEN THEY JUMPED TO VOLKSWAGEN AG IN MARCH THE DOCUMENTS WERE FOUND IN A HOUSE IN WIESBADEN GERMANY FORMERLY OCCUPIED BY TWO MEN WHO FOLLOWED J IGNACIO LOPEZ DE ARRIORTUA GM'S FORMER PURCHASING BOSS TO VW MR LOPEZ'S DEPARTURE SPARKED A LEGAL SHOVING MATCH BETWEEN THE TWO CAR COMPANIES GM CONTENDS THAT MR LOPEZ ALONG WITH SEVEN FORMER GM AND OPEL COWORKERS NOW AT VW REQUESTED PILES OF SENSITIVE MATERIAL IN THE MONTHS BEFORE THEY SWITCHED COMPANIES AFTER THEIR DEPARTURE THE DOCUMENTS COULDN'T BE FOUND GERMAN PROSECUTORS ARE INVESTIGATING WHETHER GM AND OPEL COMPANY SECRETS MADE THEIR WAY INTO THE HANDS OF VOLKSWAGEN WHAT WE'VE FOUND SHOWS THAT OPEL HAD REASON TO BE SUSPICIOUS SAID GEORG NAUTH A SPOKESMAN FOR THE STATE PROSECUTOR IN DARMSTADT WHICH IS INVESTIGATING THE CAR MAKER'S COMPLAINT MR NAUTH WOULDN'T DESCRIBE THE DOCUMENTS AND SAID IT WAS AS YET UNCLEAR WHETHER THEY WOULD BE DEEMED SECRET HE EMPHASIZED HOWEVER THAT THE MATERIALS CONFIRM AND STRENGTHEN THE POSITION OF OPEL IN THE DISPUTE THEY ARE DOCUMENTS THAT DON'T BELONG IN SOMEONE'S HOUSE HE ADDED PROSECUTORS STUMBLED ACROSS THE DOCUMENTS LAST WEEK SAID MR NAUTH WE FOUND THE MATERIAL IN THE CONTEXT OF OUR ONGOING INVESTIGATION HE SAID THE DISCOVERY IS CERTAIN TO RAISE THE TEMPERATURE IN THE FIGHT BETWEEN GM AND VW UNTIL NOW MR LOPEZ AND VOLKSWAGEN SIMPLY DENIED ANY CONFIDENTIAL MATERIALS WERE TAKEN WHILE GM AND OPEL SHOT BACK THAT THEY WERE UNSATISFIED WITH SUCH ASSURANCES INDUSTRY SOURCES NOTE THAT PROSECUTORS IN GERMANY AREN'T REQUIRED TO GO PUBLIC WITH WHAT THEY FIND IN THE COURSE OF AN INVESTIGATION WE HOPE THAT SOON THE FULL TRUTH WILL BE KNOWN SAID HORST BORGHS A SPOKESMAN FOR OPEL THE US CAR MAKER'S GERMAN SUBSIDIARY IS THE FOCUS OF THE LEGAL BATTLE WITH VW AS THE MISSING DOCUMENTS DEAL WITH THE COMPANY'S EUROPEAN OPERATIONS AMONG THE MISSING DOCUMENTS ARE SAID TO BE DETAILED PRICE LISTS FOR PARTS AND OPEL'S MODEL PLANS THROUGH 2003 FOR ITS PART VW DENIES IT HAS ANYTHING TO DO WITH WHAT WAS FOUND IN WIESBADEN WHAT PEOPLE STORE IN THEIR HOUSE BEFORE THEY JOIN THE COMPANY IS NO CONCERN FOR US SAID LUTZ SCHILLING A VW SPOKESMAN HE ADDED HOWEVER THAT HE EXPECTS VW'S OWN LAWYERS TO TALK TODAY WITH THE EMPLOYEES WHO ONCE LIVED IN THE HOUSE MOREOVER HANSPETER BLECHINGER ANOTHER VW SPOKESMAN SAID THE OPEL DOCUMENTS FOUND IN WIESBADEN CONTAIN NO SECRET DATA VW SHARES NEVERTHELESS SANK 450 MARKS YESTERDAY OR 12 TO 35580 MARKS 20996 FOLLOWING REPORTS ABOUT THE DISCOVERY OF THE DOCUMENTS SEPARATELY VW VICE CHAIRMAN DANIEL GOEUDEVERT SAID FRIDAY THAT HE IS LEAVING EUROPE'S LARGEST CAR MAKER AT THE END OF JULY HE HAD OFTEN CLASHED WITH VW CHAIRMAN FERDINAND PIECH WHO HAS ALTERED VW'S TOP MANAGEMENT SINCE TAKING OVER SEVEN MONTHS AGO THE ARRIVAL OF MR LOPEZ WAS WIDELY VIEWED AS A SIGN THAT MR GOEUDEVERT'S DAYS WERE NUMBERED 9307060148 930706 QUARTERLY MUTUAL FUNDS REVIEW FUNDS WITHOUT 800 LINES ARE A GOOD CALL BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK YOU MAY NOT BE ABLE TO JUDGE A BOOK BY ITS COVER BUT YOU CAN TELL A WHOLE LOT ABOUT A MUTUAL FUND JUST BY LOOKING AT ITS TELEPHONE NUMBER WHILE MOST MUTUAL FUNDS THESE DAYS HAVE TOLLFREE TELEPHONE LINES THERE ARE STILL A FEW SLOWPOKES WHO HAVE RESISTED THE INTRODUCTION OF 800 NUMBERS WHO ARE THESE LAGGARDS IT TURNS OUT THAT THEY'RE AMONG THE FUND INDUSTRY'S LEADERS WHEN IT COMES TO MUTUAL FUND PERFORMANCE THIS MAY SOUND LIKE A WEIRD COINCIDENCE BUT IT MAKES PERFECT SENSE TO DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER NOT HAVING AN 800 NUMBER IS AN INDICATION THAT MARKETING ISN'T THE MOST IMPORTANT THING TO THE FUND THAT MAYBE FUND MANAGEMENT HAS THE UPPER HAND HE SAYS TOLLFREE TELEPHONE LINES ARE ESPECIALLY CRUCIAL FOR NOLOAD AND LOWLOAD FUND COMPANIES WHICH LEVY LITTLE OR NOTHING IN THE WAY OF FUND SALES COMMISSIONS THESE COMPANIES SELL THEIR FUNDS DIRECTLY TO THE PUBLIC RATHER THAN THROUGH BROKERS SO THEY'RE ALWAYS EAGER TO HEAR FROM POTENTIAL INVESTORS YET SOME NOLOAD FUND GROUPS CONTINUE TO RESIST THE 800 NUMBER WHO ARE THESE FUND GROUPS IF YOU SKIP THOSE FUNDS THAT ARE EITHER UNAVAILABLE TO SMALL INVESTORS OR THAT ARE VERY SMALL YOU FIND YOURSELF FACED WITH A SELECT GROUP OF JUST FIVE FUNDS DODGE & COX BALANCED FUND DODGE & COX STOCK FUND LINDNER FUND NICHOLAS FUND AND NICHOLAS II THESE FUNDS SHARE FOUR ATTRIBUTES THEY INVEST IN US STOCKS HAVE ASSETS EXCEEDING 100 MILLION DON'T CHARGE A SALES COMMISSION AND HAVE NO 800 NUMBER AS IT HAPPENS THESE FIVE FUNDS ARE ALSO AMONG THE FUND INDUSTRY'S MOST CELEBRATED MUTUAL FUNDS FOUR OF THESE FUNDS HAVE BEEN AROUND FOR THE PAST DECADE RETURNING AN AVERAGE OF 2756 DURING THAT PERIOD THAT'S HANDILY AHEAD OF MOST DIVERSIFIED US STOCK FUNDS WHICH GAINED AN AVERAGE OF 2074 OVER THE PAST 10 YEARS THINK ABOUT THE PEOPLE RUNNING THOSE FUNDS SAYS KURT BROUWER PRESIDENT OF BROUWER & JANACHOWSKI A SAN FRANCISCO INVESTMENT ADVISER THEY'RE RECLUSIVE PERSNICKETY VALUEORIENTED PEOPLE WHO SEE NO REASON WHY THEY SHOULD PAY FOR SOMEBODY ELSE'S PHONE CALLS THEY'RE JUST THE SORT OF PEOPLE YOU WANT TO INVEST WITH BECAUSE THEY KNOW THE VALUE OF A BUCK THE MANAGERS OF THE FIVE FUNDS PROFESS TO BE MORE INTERESTED IN MANAGING MONEY THAN ATTRACTING NEW ASSETS AND THEY RECKON THE LACK OF AN 800 NUMBER KEEPS AWAY FLYBYNIGHT INVESTORS IT'S A TIME SAVER BECAUSE THE PEOPLE WHO REALLY WANT TO INVEST IN OUR FUNDS WILL SPEND THE SMALL AMOUNT OF MONEY TO CALL US SAYS HARRY HAGEY CHAIRMAN OF DODGE & COX BUT THERE COULD BE ANOTHER REASON FOR NOT HAVING A TOLLFREE TELEPHONE NUMBER MAYBE THE FUND MANAGERS INVOLVED ARE JUST PLAIN CHEAP WE DO LIKE TO KEEP OUR EXPENSES UNDER CONTROL SAYS ALBERT NICHOLAS PRESIDENT OF NICHOLAS AND NICHOLAS II THAT ALSO BENEFITS SHAREHOLDERS INDEED THE FIVE FUNDS HAVE AVERAGE ANNUAL EXPENSES OF JUST 070 COMPARED WITH 135 FOR THE AVERAGE DIVERSIFIED STOCK FUND THE DODGE & COX LINDNER AND NICHOLAS FUNDS MAY NOT HAVE A TOLLFREE NUMBER FOR PROSPECTIVE INVESTORS BUT THEY DO HAVE AN 800 LINE FOR CURRENT SHAREHOLDERS LINDNER FUND ONLY ADOPTED THIS ARRANGEMENT LATE LAST MONTH AND IT DIDN'T HAPPEN WITHOUT A STRUGGLE THE MOVE TO INTRODUCE AN 800 NUMBER FOR CURRENT SHAREHOLDERS HAD BEEN RESISTED FOR YEARS BY THE EVERFRUGAL KURT LINDNER WHO LAUNCHED THE LINDNER FUND IN 1973 BUT IN JANUARY MR LINDNER SOLD THE FUND'S INVESTMENT ADVISORY FIRM TO ERIC RYBACK WHO DECIDED TO MAKE THE BIG CHANGE KURT WOULD NEVER HAVE OPENED AN 800 LINE SAYS BRIAN BLOMQUIST A VICE PRESIDENT WITH RYBACK MANAGEMENT CORP BUT ERIC BEING A 20TH CENTURY TYPE OF GUY SAYS HE'LL DO THAT 9307060147 930706 BUSINESS BRIEF PH GLATFELTER CO VOTING TRUST CONTROLLING 31 OF COMPANY IS CREATED PH GLATFELTER CO SPRING GROVE PA SAID A VOTING TRUST REPRESENTING 136 MILLION SHARES HELD BY 75 TRUSTS AFFILIATED WITH THE GLATFELTER FAMILY HAS BEEN FORMED THE SPECIALTY PAPER PRODUCTS COMPANY SAID THE SHARES HELD BY THE TRUST REPRESENT ALMOST 31 OF THE COMMON SHARES OUTSTANDING GLATFELTER SAID IT UNDERSTOOD THE VOTING TRUST WAS FORMED TO HELP ENHANCE COMMUNICATION BETWEEN THE COMPANY AND THREE GENERATIONS OF GLATFELTER FAMILY MEMBERS THE COMPANY NOTED THAT THREE GLATFELTER FAMILY MEMBERS SIT ON THE COMPANY'S 11PERSON BOARD IN TRADING FRIDAY ON THE AMERICAN STOCK EXCHANGE GLATFELTER STOCK CLOSED AT 18375 DOWN 50 CENTS 9307060146 930706 WHO'S NEWS EDISTO RESOURCES CORP EDISTO RESOURCES CORP DALLAS MICHAEL Y MCGOVERN WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS OIL AND GAS EXPLORATION AND PRODUCTION COMPANY MR MCGOVERN 41 YEARS OLD SUCCEEDS JAMES R MCNAB 49 WHO RESIGNED TO ATTEND TO OTHER BUSINESS INTERESTS MOST RECENTLY MR MCGOVERN WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF AMERICAN NATIONAL PETROLEUM CO A HOUSTONBASED PETROLEUM EXPLORATION AND PRODUCTION COMPANY 9307060145 930706 BUSINESS BRIEF KEYSTONE FINANCIAL INC PENNSYLVANIA CONCERN SETS ELMWOOD BANCORP PURCHASE KEYSTONE FINANCIAL INC HARRISBURG PA SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE ELMWOOD BANCORP MEDIA PA FOR ABOUT 34 MILLION IN STOCK UNDER THE ACQUISITION KEYSTONE WILL ISSUE 074 SHARE OF ITS COMMON FOR EACH OF ELMWOOD'S 1460000 SHARES OUTSTANDING KEYSTONE WITH 157 MILLION SHARES OUTSTANDING AND MORE THAN 3 BILLION IN ASSETS FINISHED UNCHANGED AT 3150 IN OVERTHECOUNTER TRADING FRIDAY ELMWOOD WHICH HAS ABOUT 250 MILLION IN ASSETS FINISHED UNCHANGED AT 14 IN OTC TRADING THE AGREEMENT WAS ANNOUNCED AFTER THE MARKET CLOSED THE AGREEMENT IS SUBJECT TO APPROVAL BY REGULATORY AGENCIES AND SHAREHOLDERS OF ELMWOOD COMPLETION OF THE ACQUISITION IS EXPECTED IN THE FIRST QUARTER OF 1994 9307060142 930706 BUSINESS BRIEF HCAHOSPITAL CORP OF AMERICA COMPANY SELLS SIX HOSPITALS TO FORMER OFFICIAL INVESTORS HCAHOSPITAL CORP OF AMERICA SAID IT SOLD SIX PSYCHIATRIC HOSPITALS TO A FORMER COMPANY EXECUTIVE TERMS OF THE SALE WEREN'T DISCLOSED EDWARD A STACK FORMER WESTERN GROUP PRESIDENT OF HCA PSYCHIATRIC CO ALONG WITH A GROUP OF OTHER INVESTORS FORMED BEHAVIORAL HEALTHCARE CORP AND PURCHASED THE SIX FACILITIES THE HOSPITALS ARE PART OF THE 22 FACILITIES THE NASHVILLE TENN HOSPITAL CHAIN IS UNLOADING AS PART OF A DOWNSIZING OF ITS PSYCHIATRIC HOSPITALS HCA TOOK A CHARGE OF 330 MILLION IN THE THIRD QUARTER LAST YEAR BECAUSE OF THE EXPECTED SALE OF THE FACILITIES WITH THE TRANSACTION HCA HAS COMPLETED THE SALE OF 12 OF THE 22 HOSPITALS IT EXPECTS TO COMPLETE THE SALE OF NINE MORE THIS SUMMER A SPOKESMAN SAID 9307060141 930706 CENTURA BANKS SETS PURCHASE ROCKY MOUNT NC CENTURA BANKS INC SAID IT AGREED TO ACQUIRE CANTON SAVINGS BANK A CANTON NC BANK WITH 61 MILLION IN ASSETS AND 55 MILLION IN DEPOSITS TERMS WEREN'T DISCLOSED UNDER THE AGREEMENT CANTON WILL CONVERT TO STOCK OWNERSHIP AND SIMULTANEOUSLY MERGE WITH CENTURA A CENTURA SPOKESMAN SAID THE ACQUISITION IS SUBJECT TO APPROVAL OF CANTON'S DIRECTORS AND IS EXPECTED TO BE COMPLETED LATE THIS YEAR CENTURA SAID 9307060140 930706 ROBUST PROFITS SEEN FOR HMOS IN 2ND QUARTER COMPANIES ARE BENEFITING FROM MEMBERSHIP RISE SLOWER GROWTH IN COSTS BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL HEALTHMAINTENANCE ORGANIZATIONS ARE EXPECTED TO REPORT ROBUST EARNINGS GAINS FOR THE SECOND QUARTER AIDED BY CONTINUED GROWTH IN MEMBERSHIP AND A SLOWER RISE IN MEDICAL EXPENSES THESE COMPANIES ARE MAKING MONEY HAND OVER FIST SAYS MARGO VIGNOLA AN ANALYST AT SALOMON BROTHERS INC SHE ESTIMATES THAT PERSHARE EARNINGS ROSE 30 OR MORE FOR TWO OF THE LARGEST PUBLICLY TRADED HMOS THAT SHE FOLLOWS UNITED HEALTHCARE CORP AND US HEALTHCARE INC MS VIGNOLA SAYS THAT UNDERLYING PROFIT GROWTH AT SOME HMOS MAY BE EVEN GREATER BUT SHE SAYS SHE EXPECTS HMOS TO BUILD UP THEIR RESERVES AGAINST VARIOUS TYPES OF POTENTIAL FUTURE LOSSES RATHER THAN REPORT THE HIGHEST EARNINGS THEY COULD SHOW THE COMPANIES DON'T WANT TO APPEAR TO BE PROFITEERING SHE SAYS OTHER ANALYSTS SAY HMOS ARE BENEFITING FROM A WIDESPREAD CHANGE IN PATTERNS ON HEALTH INSURANCE HMOS WHICH REQUIRE MEMBERS TO USE A SPECIFIED GROUP OF DOCTORS AND HOSPITALS ARE GAINING GROUND AT THE EXPENSE OF TRADITIONAL INSURANCE PLANS THAT LET MEMBERS GET MEDICAL CARE WHEREVER THEY WANT THE MAIN REASON FOR HMOS' POPULARITY THEIR COSTS ARE LOWER AND THEIR HEALTHCARE COVERAGE SOMETIMES IS MORE EXTENSIVE LUCY OLWELL AN ANALYST AT MERRILL LYNCH & CO ESTIMATES THAT SECONDQUARTER MEMBERSHIP AT MAJOR HMOS GREW IN THE LOW TEENS TO MIDTEENS IN PERCENTAGE TERMS COMPARED WITH A YEAR EARLIER AND KENNETH ABRAMOWITZ AN ANALYST AT SANFORD C BERNSTEIN & CO PREDICTS HMOS AND OTHER MANAGEDCARE SYSTEMS WILL COVER 70 TO 80 OF PRIVATELY INSURED PEOPLE IN THE US BY 1997 THAT WOULD BE UP FROM ABOUT 50 TO 60 AT PRESENT MS OLWELL EXPECTS FOUNDATION HEALTH CORP TO REPORT A 26 INCREASE IN SECOND QUARTER EARNINGS TO 63 CENTS A SHARE FROM 50 CENTS A SHARE A YEAR EARLIER SHE IS LOOKING FOR EVEN MORE RAPID GROWTH FROM FHP INTERNATIONAL CORP ESTIMATING THAT ITS SECONDQUARTER EARNINGS ROSE 37 TO 48 CENTS A SHARE FROM 35 CENTS A SHARE AS MEMBERSHIP AT HMOS EXPANDS MS OLWELL SAYS COMPANIES SHOULD BE ABLE TO INCREASE NET INCOME EVEN MORE RAPIDLY THAT'S BECAUSE MARKETING AND OVERHEAD COSTS CAN BE SPREAD ACROSS A LARGER MEMBERSHIP BASE AS COMPANIES GET BIGGER THEY ACHIEVE ECONOMIES OF SCALE SHE OBSERVES SHE EXPECTS RAMSAYHMO INC TO REPORT A 24 RISE IN SECOND QUARTER EARNINGS TO 46 CENTS A SHARE FROM 37 CENTS A SHARE SHE EXPECTS NET INCOME FOR PACIFICARE HEALTH SYSTEMS TO BE ABOUT FLAT AT 59 CENTS A SHARE BUT SHE NOTES THAT THE PREVIOUS YEAR'S PERIOD WAS BOLSTERED BY SOME SUBSTANTIAL NONRECURRING GAINS ANALYSTS ARE QUOTING A VARIETY OF SECONDQUARTER ESTIMATES FOR US HEALTHCARE AND UNITED HEALTHCARE BUT ALL EXPECT THE COMPANIES TO REPORT SIZABLE GAINS FOR US HEALTHCARE FORECASTS CENTER AROUND PERSHARE EARNINGS OF 56 CENTS TO 57 CENTS UP FROM 43 CENTS FOR UNITED HEALTHCARE ANALYSTS EXPECT PERSHARE EARNINGS TO TOTAL 55 CENTS TO 56 CENTS UP FROM 40 CENTS BERNSTEIN'S MR ABRAMOWITZ EXPECTS UNITED HEALTHCARE TO SHOW 39 EARNINGS GROWTH FOR ALL OF 1993 ASIDE FROM MEMBERSHIP GROWTH HMOS ALSO ARE BENEFITING FROM LOWERTHANEXPECTED INCREASES THIS YEAR IN COSTS RELATED TO HOSPITALS PRESCRIPTION DRUGS AND DOCTORS' SERVICES SAYS SALOMON'S MS VIGNOLA HMOS SET THEIR RATES IN THE BEGINNING OF THE YEAR TO COVER EXPECTED PRICE INCREASES FROM PROVIDERS SHE SAYS BUT THOSE PRICE INCREASES AREN'T MATERIALIZING MS VIGNOLA SUGGESTS TWO REASONS WHY HEALTHCARE PROVIDERS ARE HOLDING DOWN PRICE INCREASES IN PART SHE SAYS THERE'S WIDESPREAD ANXIETY ABOUT THE CLINTON ADMINISTRATION'S PENDING HEALTHCARE REFORM PACKAGE WHICH IS CAUSING PROVIDERS TO WANT TO AVOID BEING SEEN AS JACKING UP PRICES IN ADDITION MS VIGNOLA SAYS HMOS' ABILITY TO NEGOTIATE WITH PROVIDERS IS AT A PEAK 9307060139 930706 BUSINESS BRIEF OWENSCORNING FIBERGLAS CORP CALCIUM SILICATE FACILITY IN BERLIN NJ TO BE CLOSED OWENSCORNING FIBERGLAS CORP SAID ITS CALCIUM SILICATE INSULATION FACILITY IN BERLIN NJ WILL DISCONTINUE PRODUCTION LATER THIS YEAR THE PLANT EMPLOYS 100 PEOPLE OWENSCORNING A TOLEDO OHIO SUPPLIER OF GLASS FIBER MATERIALS SAID THE CALCIUM SILICATE OPERATION HAS BEEN UNPROFITABLE FOR SEVERAL YEARS NOW AND SHOWS LITTLE PROMISE OF TURNING AROUND SOON CALCIUM SILICATE INSULATION IS USED PRIMARILY IN INDUSTRIAL CONSTRUCTION AND POWER PLANTS BUT IN RECENT YEARS MARKET DEMAND FOR THESE PRODUCTS HAS BEEN WEAK LARGELY HURT BY A SLOWDOWN IN INDUSTRIAL AND POWER PLANT CONSTRUCTION 9307060138 930706 INTERNATIONAL FIAT SETS CREDIT FOR FINANCE UNIT MILAN ITALIAN AUTO MAKER FIAT SPA SAID IT HAD ACCESSED A TWOTRILLIONLIRE 130 BILLION STANDBY CREDIT LINE FOR ITS FIATGEVA FINANCE SUBSIDIARY FIAT CHAIRMAN GIOVANNI AGNELLI TOLD SHAREHOLDERS LAST WEEK THE GROUP'S INDEBTEDNESS WAS SIX TO SEVEN TRILLION LIRE AT THE END OF JUNE AND COULD RISE TO 10 TRILLION LIRE BY THE END OF THE YEAR FIAT SAID THE CREDIT LINE WOULD BE IN TWO TRANCHES OF EQUAL AMOUNTS EXPIRING IN 18 MONTHS AND FIVE YEARS RESPECTIVELY ITALIAN COMMERCIAL BANK ISTITUTO BANCARIO SAN PAOLO DI TORINO HEADS A GROUP OF MAJOR ITALIAN BANKS ORGANIZING THE CREDIT FACILITY FIAT SAID 9307060137 930706 INTERNATIONAL CHINA SAYS ZHU OVERSEES EFFORT TO CUT INFLATION BY JULIA LEUNG STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG AFTER MONTHS OF DITHERING CHINA HAS DECLARED WAR ON INFLATION WITH VICE PREMIER ZHU RONGJI AS THE NEW COMMANDER OVER THE WEEKEND THE BEIJINGCONTROLLED WEN WEI PAO DAILY IN HONG KONG PUBLISHED A REPORT SAYING THAT CHINA HAS ISSUED A SLEW OF BELTTIGHTENING MEASURES RANGING FROM FREEZING PRICE REFORMS TO SLASHING GOVERNMENT SPENDING TO BANNING CAR IMPORTS BEIJING IS TRYING TO SLOW ECONOMIC GROWTH TO AN ANNUAL RATE OF 10 FROM 14 FOR THE FIRST FIVE MONTHS THE REPORT SAYS THE NEWS FOLLOWED CLOSELY THE DISMISSAL OF LI GUIXIAN THE GOVERNOR OF THE PEOPLE'S BANK OF CHINA BY MR ZHU WHO TOOK OVER THE JOB IN PUTTING SOMEBODY'S HEAD ON THE BLOCK THE VICE PREMIER ISN'T ONLY MAKING GOOD ON HIS CONSTANT THREATS TO FIRE PEOPLE WHOSE PERFORMANCES HE FEELS ARE LACKING HE ALSO IS ISSUING A CLEAR WARNING TO AUTONOMOUS PROVINCIAL OFFICIALS WHOSE COMPLIANCE IS NECESSARY TO DOUSE THE FLAMES OF INFLATION AND SOCIAL UNREST BEIJING IMPOSED AUSTERITY POLICIES IN LATE 1988 BUT THE PROVINCES DIDN'T TAKE NOTE UNTIL AFTER THE BLOODY JUNE 4 1989 TIANANMEN SQUARE CRACKDOWN WHICH SENT SHUDDERS DOWN THE SPINES OF REBELLIOUS OFFICIALS THE LATEST MEASURES RESEMBLE THE RETRENCHMENT POLICIES ADMINISTERED BY BEIJING IN 1988 THAT AUSTERITY PROGRAM BROUGHT DOWN INFLATION BUT THE ECONOMY WAS ALSO RUN TO THE GROUND SUCH ECONOMIC REPERCUSSIONS ARE POSSIBLE NOW BUT BEIJING LEADERS HAVE NO CHOICE BUT STEP HARD ON THE BRAKES SAYS THOMAS CHAN COORDINATOR OF HONG KONG POLYTECHNIC'S CHINA BUSINESS CENTER THIS GETTOUGH ATTITUDE COMES IN SHARP CONTRAST TO AN APPARENT LACK OF POLITICAL RESOLVE TO TACKLE THE ISSUE EARLIER IN THE YEAR WHEN CHINESE LEADERS HAD BEEN RELUCTANT EVEN TO ACKNOWLEDGE THE ECONOMIC OVERHEATING THAT'S BECAUSE CHINA'S SENIOR LEADER DENG XIAOPING HAD BERATED OFFICIALS WHO WARNED OF INFLATIONARY SIGNS EARLY THIS YEAR LAST WEEK'S DEVELOPMENTS HAVE REMOVED ANY LINGERING PUBLIC DOUBTS ON THE ISSUE OF WHO IS IN CHARGE IN FIRING GOVERNOR LI AN ALLY OF AILING PREMIER LI PENG AND WRESTING CONTROL OVER THE CENTRAL BANK MR ZHU HAS TIGHTENED HIS GRIP ON FINANCIAL MATTERS ON TOP OF THE CONTROL HE ALREADY EXERTS OVER INDUSTRIAL AND AGRICULTURAL POLICIES MEANWHILE PREMIER LI PARTIALLY RESUMED HIS STATE DUTIES TWO WEEKS AGO BUT THE OFFICIAL WORD HAS IT THAT HE HAS TO SPEND MORE TIME IN THE HOSPITAL TO RECOVER FROM HIS HEART AILMENT CITING AN AUTHORITATIVE SOURCE WEN WEI PAO SAID THE COMMUNIST PARTY'S CENTRAL COMMITTEE RECENTLY ISSUED 16 POLICY DIRECTIVES TO RESOLVE CONTRADICTIONS AND THORNY ECONOMIC ISSUES SEVERAL MEASURES INCLUDING THE IMMEDIATE RECOVERY OF MISSING FUNDS IN THE INTERBANK MARKET AND THE ABOLISHING OF INDUSTRIAL ZONES HAVE BEEN PREVIOUSLY DISCLOSED BUT OTHER DECREES DISCLOSED IN THE WEN WEI PAO REPORT SUGGEST THAT THE LATEST BELTTIGHTENING MEASURES ARE MORE WIDERANGING THAN MANY HAVE ANTICIPATED PLANNED PRICE REFORMS TO DEREGULATE PRICES SLATED TO BE IMPLEMENTED IN THE SECOND HALF WILL BE POSTPONED PRICES ON SUCH COMMODITIES AS FUELS AND RAW MATERIALS THAT WERE PREVIOUSLY DEREGULATED WILL CONTINUE TO BE DETERMINED BY SUPPLY AND DEMAND BEIJING IS CRACKING DOWN ON INSTITUTIONAL CONSUMPTION WHICH MEANS PURCHASES OF SUCH CONSUMER PRODUCTS AS SOFT DRINKS BY STATEOWNED ENTERPRISES AS A FORM OF EMPLOYEE BENEFIT IMPORTS OF CARS WILL BE BANNED IN THE SECOND HALF AND GOVERNMENT ADMINISTRATIVE COSTS WILL BE SLASHED BY 20 CAPITALGAINS TAXES ON PROPERTY TRANSACTIONS AND SOME PRICE RESTRICTIONS WOULD BE ENFORCED PRESUMABLY TO CURB RAMPANT SPECULATION OVERALL INFRASTRUCTURE INVESTMENT WHICH JUMPED 70 DURING THE FIRST QUARTER WILL BE SCALED BACK THE GOVERNMENT SAYS IT WILL NO LONGER TOLERATE THE SALE OF STOCKS THAT AREN'T PROPERLY REGISTERED SINCE THE BEGINNING OF THE YEAR AN ILLEGAL MARKET IN SUCH STOCKS HAS BOOMED DOMESTIC LISTING OF PROPERLY REGISTERED STOCKHOLDING COMPANIES HOWEVER WILL CONTINUE TO ENJOY GOVERNMENT SUPPORT BUT NEW ISSUES SHOULD BE SPACED OUT TO AVOID A GLUT OF NEW STOCKS LENDING AND DEPOSIT RATES AT BANKS WILL BE RAISED FOLLOWING A ROUND OF MODEST INCREASES IN MAY 9307060136 930706 QUARTERLY MUTUAL FUNDS REVIEW DAVIS SEES CHOPPY MARKET LIKE 1960S BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN SHELBY MC DAVIS SAYS TODAY'S STOCK MARKET REMINDS HIM OF THE 1960S HE KNOWS WHAT HE'S TALKING ABOUT MR DAVIS HAS RUN THE TOPPERFORMING NEW YORK VENTURE FUND FOR ALMOST A QUARTER OF A CENTURY HE SAYS THE RECENT CHOPPY MARKETS RESEMBLE THOSE HE SAW IN THE 1960S WHEN STOCK PRICES SEESAWED AFTER THE HUGE GAINS OF THE 1950S THE 1950S WERE A GIGANTIC GROWTH PERIOD FOR STOCKS SIMILAR IN MANY RESPECTS TO THE 1980S MR DAVIS SAYS IN THE 1960S AS TODAY STOCKS WERE RICHLY PRICED IN RELATION TO EARNINGS AND DIVIDEND YIELDS WERE LOW MUTUAL FUNDS WERE HOT SELLERS THEN TOO TODAY THE DOW JONES INDUSTRIAL AVERAGE COULD EASILY FLUCTUATE IN A RANGE OF 3000 TO 3500 ALTHOUGH I'M NOT SAYING 3000 WILL NECESSARILY HOLD IN A BEAR MARKET HE SAYS HOPEFULLY AN EXPERIENCED CAPTAIN CAN NAVIGATE THROUGH THE MARKETS AHEAD MR DAVIS SAYS HE ADDS RUEFULLY THAT'S THE ONLY ADVANTAGE TO BEING A VETERAN MR DAVIS MAY RUE HIS LONG YEARS AS A MONEY MANAGER BUT FEW OF HIS SHAREHOLDERS DO MR DAVIS HAS RACKED UP A TREMENDOUS RECORD IN 24 YEARS AT NEW YORK VENTURE BEATING THE RETURNS OF SUCH LEADING FUNDS AS VANGUARD/WINDSOR RUN BY THE RENOWNED JOHN NEFF AND FIDELITY CONTRAFUND MANAGED BY A STRING OF TOP FIDELITY MANAGERS NEW YORK VENTURE FUND HAS NOTCHED UP A 139 ANNUALIZED RETURN SINCE ITS FEBRUARY 1969 LAUNCH ACCORDING TO LIPPER ANALYTICAL SERVICES THAT FAR SURPASSES THE 109 YEARLY RETURN OF THE STANDARD & POOR'S 500STOCK INDEX INCLUDING BOTH SHARE PRICE AND REINVESTED DIVIDENDS FOR THE DECADE AHEAD MR DAVIS IS POISED TO OUTPERFORM THE MARKET AGAIN OR FALL FLAT ON HIS FACE HE IS MAKING A HUGE BET ON FINANCIAL SERVICES STOCKS WHICH MANY MONEY MANAGERS ARE LIGHTENING UP ON OR AVOIDING ALTOGETHER THEIR FEAR IS THAT INTEREST RATES WILL RISE HURTING BANKS INSURANCE COMPANIES BROKERAGE FIRMS AND THE LIKE MR DAVIS'S PERFORMANCE WILL DEPEND ON WHETHER HIS BET AGAINST THE CONSENSUS PANS OUT MR DAVIS GOT INTO THE INVESTING BUSINESS IN 1958 WHEN HE JOINED BANK OF NEW YORK'S INVESTMENT RESEARCH DEPARTMENT TWO OF HIS SONS NOW MANAGE MUTUAL FUNDS WITH HIM AND HE SOMETIMES KEEPS THEM IN THEIR PLACE WITH A SAYING THAT HE STORES IN HIS DESK AGE AND TREACHERY WILL DEFEAT YOUTH AND SKILL MR DAVIS HAS TOILED IN RELATIVE OBSCURITY DESPITE HIS STRONG PERFORMANCE NEW YORK VENTURE HAS 670 MILLION IN ASSETS FAR LESS THAN THE MULTIBILLIONDOLLAR FUNDS RUN BY SOME OF HIS PEERS HE HAS A DISTRACTED AIR ABOUT HIM AND DOESN'T PAY MUCH ATTENTION TO MARKETING DESPITE MR DAVIS'S OUTSTANDING RECORD SAYS KENT SIMONS COMANAGER OF NEUBERGER & BERMAN GUARDIAN FUND AND A FORMER PRINCETON EATING CLUB ACQUAINTANCE HE'S MODEST TO A FAULT SELECTED/VENTURE HAS BECOME A MISHMASH THAT COMBINES LOAD FUNDS WHICH ARE SOLD THROUGH BROKERS AND CHARGE A SALES COMMISSION AND NOLOAD FUNDS THAT ARE SOLD DIRECTLY TO INVESTORS WITHOUT COMMISSIONS FOR INSTANCE NEW YORK VENTURE CHARGES A LOAD OF AS MUCH AS 475 BUT SELECTED AMERICAN SHARES THE 450 MILLION FUND THAT MR DAVIS BEGAN MANAGING IN MAY CHARGES NO LOAD NOW THAT HE MANAGES A NOLOAD FUND WHY SHOULD INVESTORS WHO WANT MR DAVIS'S MANAGEMENT PAY A LOAD THE TWO FUNDS WILL HAVE A LOT OF THE SAME COMPANIES AND THEMES MR DAVIS SAYS BUT SELECTED WILL HAVE AN INCOME TILT WHEREAS NEW YORK VENTURE WILL FOCUS ON SHARE PRICE APPRECIATION ALONE FOR EXAMPLE SELECTED NOW OWNS MORE INCOMEBOOSTING REALESTATE INVESTMENT TRUSTS AND CONVERTIBLE BONDS THAN VENTURE MR DAVIS'S STOCKPICKING STYLE IN MANY WAYS RESEMBLES THAT OF DONALD YACKTMAN WHO MANAGED SELECTED AMERICAN SHARES FOR NEARLY A DECADE BEFORE LEAVING IN 1992 AFTER A DISAGREEMENT WITH KEMPER MR YACKTMAN WENT ON TO LAUNCH HIS OWN FUND THE TWO MANAGERS LIKE TO BUY WELLMANAGED FASTGROWING COMPANIES WHOSE SHARE PRICES HAVE BEEN KNOCKED DOWN BY BAD NEWS BOTH LOOK FOR STRONG CHIEF EXECUTIVES WHO HAVE A BIG CHUNK OF STOCK THEMSELVES AND BOTH LIKE COMPANIES THAT PUT EXCESS CASH TO GOOD USE I'M BEING PAID TO INVEST IN THE BANKS MR DAVIS SAYS HE NOTES THAT THEY SELL FOR ONLY NINE TIMES ESTIMATED 1994 EARNINGS COMPARED WITH ABOUT 16 TIMES FORECASTED EARNINGS FOR THE STOCKS IN THE S&P 500 ACCORDING TO ZACKS INVESTMENT RESEARCH THE BANKS' DIVIDEND GROWTH WILL EXCEED THEIR EARNINGS GROWTH HE BELIEVES BECAUSE THEY'VE REBUILT THEIR CAPITAL AFTER THE SPECULATIVE EXCESSES IN REAL ESTATE AND ELSEWHERE IN THE 1980S BUT BANKS AND OTHER FINANCIAL SERVICES STOCKS HAVE ALREADY HAD A STRONG RUN FOR THE PAST TWO YEARS AND MANY INVESTORS EXPECT INTEREST RATES TO RISE DRIVING FINANCIAL SERVICES STOCKS DOWN THE STOCKS TOOK A TUMBLE ON SUCH INTERESTRATE FEARS LATE IN THE SPRING BUT IT'S TOO SIMPLISTIC TO SAY FINANCIAL SERVICES SHOULD BE AVOIDED AT ALL COSTS IN A HIGH INTERESTRATE ENVIRONMENT MR DAVIS SAYS THE BANKS' PROBLEMS IN THE LATE 1980S CAME FROM LOUSY ASSETS HE SAYS NOT HIGH INTEREST RATES NOW THEY'VE CLEANSED THEIR SOULS MR DAVIS'S FOCUS ON FINANCIAL STOCKS IS NOT NEW BACK IN THE 1960S HE WAS BUYING AMERICAN INTERNATIONAL GROUP A COMMERCIAL INSURER THAT IS STILL ONE OF HIS FAVORITE STOCKS HIS FATHER SHELBY CULLOM DAVIS RAN A BROKERAGE FIRM SPECIALIZING IN INSURANCE STOCKS FINANCIAL SERVICES STOCKS WERE A BIG TOPIC AT THE DINNER TABLE RECALLS THE YOUNGER MR DAVIS FINANCIAL SERVICE COMPANIES HAVE A PRODUCT CALLED MONEY THAT CANNOT BECOME OBSOLETE HE SAYS EVEN IN A GENTLY RISING INTERESTRATE ENVIRONMENT THEY CAN SHOW ENOUGH EARNINGS GAINS TO SHOW GOOD TOTAL RETURNS FROM SHARE PRICE GAINS AND DIVIDEND INCREASES MR DAVIS EXPECTS ONLY A SLOW RISE IN INTEREST RATES OUTSIDE OF FINANCIAL SERVICES MR DAVIS OWNS SEMICONDUCTOR MAKER INTEL CORP WHICH HE THINKS IS PRETTY DARN CHEAP AT FRIDAY'S CLOSING PRICE OF 53875 ABOUT 10 TIMES ESTIMATED 1994 EARNINGS THE RISK ON INTEL IS THAT MARGINS ARE EXTREMELY HIGH AND MIGHT NOT BE SUSTAINABLE HE SAYS THAT'S A RISK I'M WILLING TO TAKE BECAUSE THE PRICEEARNINGS RATIO ISN'T HIGH HE OWNS GENERAL MOTORS CORP THE OPPOSITE EXTREME FROM INTEL NOT FOR EARNINGS BUT FOR THE VALUE IN ITS VARIOUS BUSINESSES AND HE HAS LONG BEEN A FAN OF ARCHERDANIELSMIDLAND CO THE FOODPROCESSING FIRM BECAUSE HE THINKS THAT THE ANDREAS FAMILY MEMBERS IN TOP MANAGEMENT POSITIONS ARE TOUGH HE ADDS I LIKE TO SEE COMPANIES WHERE THE MANAGEMENTS HAVE BEEN THROUGH A COUPLE OF ECONOMIC CYCLES MR DAVIS HAS LOOKED FOR COMPANIES WITH STRONG BALANCE SHEETS EVER SINCE HE INVESTED IN MEMOREX IN THE LATE 1960S HE TRIPLED OR QUADRUPLED HIS MONEY ON THE STOCK WHICH SOARED TO 160 BUT HE FAILED TO SELL AS THE SHARES PLUMMETED TO AS LOW AS 225 HIS CHILDREN LOST MONEY IN THE STOCK AND THE DIRECTORS OF VENTURE SOMETIMES SERENADE HIM WITH THANKS FOR THE MEMOREX TODAY SOME STOCK WATCHERS WORRY ABOUT A CATACLYSMIC DECLINE SUCH AS THE ONE THAT HIT MEMOREX AND THE ENTIRE MARKET BEGINNING IN 1973 BUT MR DAVIS THINKS THAT SCENARIO IS UNLIKELY FOR NOW THE MARKET WILL HAVE CORRECTIONS HE SAYS BUT IT WON'T BE THE BIG ENCHILADA' NOT UNTIL EVERYBODY'S INVESTED THERE ARE STILL HUNDREDS OF BILLIONS OF DOLLARS IN MONEY MARKET FUNDS AND GETTING ALL THAT MONEY INVESTED HE SAYS MIGHT TAKE SEVERAL YEARS 9307060135 930706 HILO AUTOMOTIVE'S SALES DROP HOUSTON HILO AUTOMOTIVE INC SAID SAMESTORE SALES DROPPED 58 IN JUNE WHILE TOTAL SALES INCREASED 23 TO 183 MILLION FROM 178 MILLION THE AUTOMOTIVEPARTS RETAILER SAID THAT FOR THE FIRST SIX MONTHS OF THE YEAR SAMESTORE SALES FELL 2 AND TOTAL SALES INCREASED 67 TO 971 MILLION FROM 91 MILLION HILO SAID CONTINUED POOR WEATHER AND A GENERAL SOFTNESS IN RETAIL SALES IN ITS MARKETS CONTRIBUTED TO THE LOWER SAMESTORE SALES 9307060134 930706 OTC FOCUS NASDAQ LEADERS RUNNING ON PROFITENRICHED FUEL BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SOME BRIGHT NEW STARS HAVE BEEN RISING IN THE UNIVERSE OF OVERTHECOUNTER STOCKS PROPELLED BY EXPECTATIONS OF STRONG SECONDQUARTER EARNINGS ANALYSTS DEBATE WHETHER THESE NEWLY MINTED HOT STOCKS CAN LEAD THE NASDAQ MARKET HIGHER SUPPLANTING SOME OF THE BIG ISSUES THAT HAVE DISAPPOINTED INVESTORS BUT IT'S CLEAR WHAT'S ON INVESTORS' MINDS FIRST AND FOREMOST FOR NASDAQ STOCKS IT'S EARNINGS EARNINGS EARNINGS SAYS SCOTT SCHOELZEL MANAGER OF FOUNDERS ASSET MANAGEMENT'S GROWTH FUND IN DENVER NASDAQ STOCKS ARE THE EMERGING GROWTH STOCKS OF THE 90S AND THEY HAVE TO MAKE THEIR EARNINGS EVERY QUARTER MAKING EARNINGS GROWTH THE SOLE CRITERION FOR DETERMINING LEADERSHIP IN THE NASDAQ MARKET LEADS SOME ANALYSTS TO DEBATE EXACTLY WHAT LEADERSHIP IS IN THE NASDAQ MARKET LEADERSHIP DOESNT COME AND STAY SAYS RAY HIRSCH OF IDS GROWTH SPECTRUM ADVISORS IN MINNEAPOLIS SOME TECHNOLOGY STOCKS WILL MOVE THE MARKET BECAUSE THEY ARE SO BIG BUT LEADERSHIP CAN SHIFT TWO OR THREE TIMES A YEAR A YEAR AGO IT WAS BIOTECHS ON TOP THIS YEAR WE'VE GONE THROUGH FINANCIALS CABLE RESTAURANTS DIFFERENT TECHNOLOGY STOCKS CASINO STOCKS AND NOW WE'RE COMING BACK TO FINANCIALS BUT THAT KIND OF LEADERSHIP DOESN'T IMPRESS SOME INVESTORS THERE REALLY ISN'T LEADERSHIP IN THE NASDAQ MARKET SCOFFS SCOTT BLACK PRESIDENT OF DELPHI MANAGEMENT IN BOSTON SURE INTEL AND MICROSOFT ARE IN A CLASS BY THEMSELVES BUT OTHERWISE THERE IS JUST A LOT OF ROTATION CLAUDIA MOTT A MARKET STRATEGIST WITH PRUDENTIAL SECURITIES TAKES THE MIDDLE GROUND THE NASDAQ BELLWETHERS THAT LEAD THE INDEX HAVE CERTAINLY CHANGED SHE SAYS BUT THEY ARE NOT NECESSARILY INDICATIVE OF THE REST OF THE MARKET AMID THE IMPRESSIVE GAINS OF SOME STOCKS AND THE BIG DISAPPOINTMENTS RENDERED BY OTHERS THE NASDAQ COMPOSITE INDEX HAS RISEN A MEAGER 41 IN THE FIRST HALF OF 1993 FRIDAY IT EDGED UP 090 TO 70449 MS MOTT SAYS INVESTORS SHOULD BE SHOPPING FOR COMPANIES WITH STRONG EARNINGS GROWTH IN THE AREAS OF HOME BUILDING AUTO PARTS CONSUMER DURABLES AND ENERGY SHE ALSO SUGGESTS THAT BANKS AND OTHER FINANCIAL STOCKS HAVE BEEN SHOWING GOOD EARNINGS GROWTH FOR THE PAST YEAR AND WILL CONTINUE TO DO SO IT'S HARD TO IDENTIFY MARKET LEADERS IN THE FINANCIALS WHEN WE'RE TALKING ABOUT SMALL REGIONAL BANKS OR OTHER SERVICES SHE SAYS BUT FINANCIALS HAVE GOOD EARNINGS MOMENTUM IN THE PAST AND THERE'S MORE TO COME THIS IS AN AREA THAT WILL BE A GREAT BENEFIT TO NASDAQ SOME OF THE MOST VISIBLE WINNERS SO FAR THIS YEAR ARE COMPUTER NETWORKING COMPANIES ORACLE IS UP 76 SO FAR THIS YEAR CISCO SYSTEMS HAS JUMPED 41 SYBASE HAS GAINED 46 AND SYNOPTICS COMMUNICATIONS HAS CLIMBED 39 ORACLE BLASTED THROUGH WALL STREET'S EARNINGS EXPECTATIONS LAST TUESDAY POSTING PROFIT OF 47 CENTS A SHARE FOR ITS FISCAL FOURTH QUARTER ENDED MAY 31 UP FROM 20 CENTS A YEAR EARLIER AND TIDILY ABOVE ANALYSTS' EXPECTATIONS OF 38 CENTS A SHARE IT CLOSED UNCHANGED ON FRIDAY AT 50 TELECOMMUNICATIONS STOCKS HAVE JUMPED INTO THE LIMELIGHT TOO DSC COMMUNICATIONS HAS MORE THAN DOUBLED THIS YEAR TO CLOSE ON FRIDAY AT 51 1/8 THE PLANO TEXAS COMPANY MANUFACTURES TELECOMMUNICATION AND LOCALAREA NETWORK SYSTEMS FOR DOMESTIC AND INTERNATIONAL INTEREXCHANGES MCCAW CELLULAR UP 37 THIS YEAR JUST GAINED A SPOT ON STANDARD & POOR'S 500 STOCK INDEX SHARES OF LM ERICSSON TELEPHONE A SWEDISH PRODUCER OF TELECOMMUNICATIONS EQUIPMENT AND ELECTRONIC DEFENSE SYSTEMS HAVE SURGED 63 THIS YEAR CLOSING AT 43 1/4 THE GAINS AREN'T CONFINED TO TECHNOLOGY COMPANIES BEVERAGEMAKER COTT CORP HAS GAINED 82 FOR THE YEAR AFTER MORE THAN DOUBLING ITS EARNINGS FOR ITS FIRST QUARTER ENDED MAY 1 AND THERE'S ALWAYS INTEL AND MICROSOFT THE KINGS OF THE EARNINGSGROWTH MOUNTAIN INTEL WHICH CLOSED AT 53 7/8 FRIDAY IS UP 24 FOR THE YEAR EVEN THOUGH IT IS DOWN FROM ITS YEARHIGH OF 60 5/8 MICROSOFT HAS POSTED A MEASLY 2 GAIN FOR THE YEAR CLOSING ON FRIDAY AT 87 1/4 BUT THE SOFTWARE GIANT IS EXPECTED TO HAVE AN EXPLOSIVE SECOND HALF ANALYSTS SAY ALL THESE STOCKS ARE ESPECIALLY ATTRACTIVE IN THE CURRENT LACKLUSTER ECONOMIC CLIMATE COMPANIES THAT ARE ABLE TO TAKE WHAT MOMENTUM THERE IS AND TURN IT INTO GOOD EARNINGS ARE PERCEIVED AS BETTER INVESTMENTS SAYS MS MOTT BUT WOE BE UNTO STOCKS THAT LOSE THEIR MOMENTUM INVESTORS HAVE BEEN MERCILESS WITH STOCKS THAT HAVE DISAPPOINTED THEM ALMOST IN EVERY CASE THE STOCKS THAT HAVE GOTTEN KILLED SUFFERED EARNINGS DISAPPOINTMENTS SAYS MR SCHOELZEL TAKE APPLE COMPUTER ONCE AN OTC MARKET LEADER IT HAS SUNK 36 THIS YEAR AND IS NOW TRADING AT 38 1/2 DELL COMPUTER SLIPPED ANOTHER 1/8 TO 18 3/4 ON FRIDAY DOWN 61 FOR THE YEAR AND CIRRUS LOGIC FINISHED UNCHANGED AT 17 1/4 DOWN 51 AMGEN AT 35 3/8 HAS FALLEN 50 THE CARNAGE REFLECTS INVESTORS' URGE TO RID THEIR PORTFOLIOS OF LOSERS QUICKLY AND REPLACE THEM WITH WINNERS THE HAIRTRIGGER SELLING OFTEN COMES AT THE SLIGHTEST HINT OF STIFFER COMPETITION PRODUCTION SNAGS OR SLOWER SALES PERFORMANCE ISN'T JUST A MATTER OF WHAT YOU OWN IT'S ALSO WHAT YOU DON'T OWN MR SCHOELZEL ASSERTS THESE STOCKS ARE SO BIG THAT IF THEIR EARNINGS DISAPPOINT BY A PENNY IT CAN HIT THE WHOLE MARKET SAYS ALAN RADLO MANAGER OF FIDELITY'S OTC PORTFOLIO STOCKS LIKE THESE MAKE THE MARKET VERY EXPENSIVE AND VERY RISKY OTC STOCKS EDGED UPWARD ON LIGHT TRADING BEFORE THE HOLIDAY WEEKEND THE NASDAQ COMPOSITE INDEX ROSE 090 OR 013 TO 70449 ADVANCING ISSUES OUTNUMBERED DECLINERS 1366 TO 1238 ON TOTAL VOLUME OF 1825 MILLION SHARES DOWN FROM THURSDAY'S 2558 MILLION TRISTATE BANCORP JUMPED 3 TO 19 1/4 FIFTH THIRD BANCORP WHICH EASED 1/8 TO 53 3/8 SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE TRISTATE AND ITS SUBSIDIARY FIRST FINANCIAL SAVINGS ASSOCIATION IN A STOCK SWAP VALUED AT 678 MILLION SATELLITE TECHNOLOGY DROPPED 2 3/8 TO 3 7/8 THE MAKER OF SATELLITE COMMUNICATIONS NETWORKS SAID IT EXPECTS SECONDQUARTER RESULTS TO BE SUBSTANTIALLY BELOW EXPECTATIONS THE COMPANY BLAMED CONTRACTS THAT WEREN'T COMPLETED BECAUSE OF AN ONGOING COMMERCE DEPARTMENT INVESTIGATION INTO THE PROPRIETY OF WHAT WOULD HAVE BEEN THE COMPANY'S FIRST COMMERCIAL TRANSACTION IN IRAN THE COMPANY EXPECTS TO REPORT A LOSS FOR THE SECOND QUARTER COMPARED WITH EARNINGS OF 19 CENTS A SHARE A YEAR EARLIER 9307060133 930706 INTERNATIONAL RUBLE IS EXPECTED TO BE STEADY MOSCOW THE GOVERNMENT EXPECTS THE RUBLE TO REMAIN WITHIN A 5 RANGE OF 1000 RUBLES FOR THE NEAR TERM THE RUSSIAN CURRENCY REMAINED STEADY AGAINST THE US DOLLAR IN TRADING LAST FRIDAY CLOSING AT 1059 ON THE MOSCOW INTERBANK CURRENCY EXCHANGE RUSSIA'S FINANCE MINISTER BORIS FYODOROV SAID THE RUBLE'S RECENT STABILIZATION IS A RESULT OF STRICT MONETARY MEASURES INSTITUTED BY THE GOVERNMENT AND CENTRAL BANK OVER THE LAST TWO MONTHS 9307060132 930706 REGULATORY CHOKEHOLD TURN AILING THRIFTS INTO COMMUNITY BANKS BY PRESTON MARTIN PRESIDENT CLINTON IS ABOUT TO ASK THE TAXPAYERS FOR 382 MILLION MORE TO SET UP A CENTRAL BANK FOR LENDERS IN DISTRESSED COMMUNITIES COMMUNITY BANKING IS THE VEHICLEINSTITUTIONS THAT SPECIALIZE IN LENDING TO MINORITY BUSINESSES OR HOUSES AND STORES IN OLDER NEIGHBORHOODS THE PRESIDENT'S GOAL COULDN'T COME AT A BETTER TIME THE MONEY SUPPLY IS SHRINKING AGAIN JOBS ARE BECOMING LAYOFFS SMALL BUSINESSES ARE WONDERING ABOUT THEIR FUTURE AFFORDABLE MINORITY HOME OWNERSHIP IS UNACCEPTABLY LOW THE COMMUNITY BANKING AND CREDIT FUND UNDER DISCUSSION IS PART OF A FUNDING BILL FOR THE RESOLUTION TRUST CORPORATION THE FUND WOULD PROVIDE MATCHING FUNDS TO NEW LENDERS AND EXISTING LENDERS IN DISTRESSED COMMUNITIES FINE BUT LET'S BE PRACTICAL YOU START MR CLINTON'S 100 NEW COMMUNITY BANKS TOMORROW AND THEY WON'T HAVE A MEASURABLE IMPACT FOR ANOTHER TWO OR THREE YEARS STARTUPS TAKE TIME AS I KNOW FROM PERSONAL EXPERIENCE LAST MONTH THE GOVERNMENT SEIZED WESTERN FEDERAL A 36 BILLION THRIFT INSTITUTION ONE OF THREE MY PARTNERS AND I OWNED IN LOS ANGELES NO WESTERN WASN'T ONE OF THOSE TAINTED BY SCANDAL OR SELFDEALING YES WESTERN HAD ALL NEW MANAGEMENT AND OUR OWN CAPITAL BUT IT HADN'T FINISHED ITS JOB OF SELLING NOT DUMPING THE BAD ASSETS IT INHERITED WHICH MEANT SELLING INTO ONE OF THE MOST DEPRESSED REALESTATE MARKETS IN THE COUNTRY IF CERTAIN COMMUNITIES IN THE US DESPERATELY NEED MORE CREDIT SEIZING BANKS LIKE WESTERN FEDERAL IS COUNTERPRODUCTIVE SEIZED BANKS DON'T MAKE LOANS MY EXPERIENCE IN AND OUT OF GOVERNMENT SHOWS ME THAT THERE ARE WAYS TO GENERATE VERY SUBSTANTIAL COMMUNITY BANKING VOLUMES WHILE AT THE SAME TIME SAVING TAXPAYERS HUNDREDS OF MILLIONS OF DOLLARS HOW BY SALVAGING ALL OR PARTS OF AILING BANKS AND THRIFTS THE MORE DEPRESSED THE BANKSERVICE AREA IS THE MORE IMPORTANT IT IS TO SAVE ALL OR PART OF THE LENDER AND ITS EMPLOYMENT BASE THERE ARE JUST TOO MANY REGIONS IN THE US RIGHT NOW THAT HAVE DEEP PERSISTENT RECESSIONS LIKE MASSACHUSETTS AND NEW JERSEY AND SOME SUFFERING FROM DEFENSE LAYOFFS AND REALESTATE DEPRESSIONS LIKE SOUTHERN CALIFORNIA MANY REGIONS SUFFER FROM A DRASTIC SHRINKAGE OF THE FINANCIAL SERVICES INDUSTRY THE WORST SINCE THE 1930S MERGERS ARE A WEEKLY OCCURRENCE AND WITH MERGERS COME CUTBACKS LAYOFFS AND CONTRACTIONS IN LENDING BUSINESS LOANS ARE DOWN FOR THREE YEARS RUNNING THRIFTS ARE SHRINKING BALANCE SHEETS MINORITY HOME MORTGAGES ARE TOO HARD TO COME BY THE SEVERE ECONOMIC DOWNTURN AND DISINFLATION HAVE REQUIRED OTHERWISE PROFITABLE BANKING INSTITUTIONS TO BOOK SIGNIFICANT LOSSES PARTICULARLY IN THEIR MORTGAGE PORTFOLIOS THESE WRITEDOWNS HAVE NO CONNECTION TO THE SCANDALS OF THE 1980S WHEN INSTITUTIONS COLLAPSED BECAUSE OF SELFDEALING AND OTHER IMPRUDENT PRACTICES UNFORTUNATELY FEDERAL BANKING POLICY DOES NOT DISTINGUISH BETWEEN THE TWO SITUATIONS INSTEAD OF HELPING THE AILING REGIONAL ECONOMIES AND THE BANKING INDUSTRY THROUGH THIS DIFFICULT CYCLE FEDERAL LAW AND REGULATION EXACERBATE THE PROBLEM UNDER CURRENT STATUTES BANKING INSTITUTIONS MUST BE SEIZED IF THEY ARE DEFICIENT IN ANY ONE OF SEVERAL CAPITAL CATEGORIES EVEN IF OPERATIONS ARE PROFITABLE AND THEY HAVE POSITIVE NET WORTH BECAUSE OF SCANDALS LIKE THE CHARLES KEATING AFFAIR REGULATORS ARE UNDER CONGRESSIONAL PRESSURE TO SEIZE BANKING INSTITUTIONS SOONER RATHER THAN LATER CURRENT STATUTES THUS HAVE THE EFFECT OF PUSHING DOZENS OF VIABLE BANKS AND THRIFTS IN WEAK MARKETS OVER A CLIFF THE FINANCIAL INDUSTRY KEEPS ON SHRINKING CONGRESS AND ITS REGULATORS SHOULD BEGIN TO EMPHASIZE TWO OTHER REQUIREMENTS OF THE BANKING STATUTES ONE THAT MANDATES THAT REGULATORS PURSUE THE LEAST COST STRATEGY IN DEALING WITH UNDERCAPITALIZED BANKS AND ANOTHER THAT REQUIRES STEPPEDUP LENDING IN OLDER NEIGHBORHOODS A LEASTCOST APPROACH WOULD BALANCE THE QUALITY OF A BANK'S EXISTING MANAGEMENT AND THE PROGNOSIS OF THE BUSINESS CYCLE AGAINST THE COSTS OF LIQUIDATION AT THE BOTTOM OF THE MARKET PARTICULARLY WHERE THE REGULATORS HAVE CONFIDENCE IN EXISTING MANAGEMENT THE LEASTCOST POLICY WOULD GENERALLY BE FOR THE REGULATORS TO MONITOR THE BANK NOT SEIZE IT IN SUCH A WAY REGULATORS COULD HELP BANKING INSTITUTIONS MEET THE LENDING REQUIREMENTS ESTABLISHED BY THE COMMUNITY REINVESTMENT ACT CRA THUS PRESERVING EXPERT UNDERWRITING AND LENDING TO MINORITIES A SEIZURE BY REGULATORS HALTS THIS LENDING AS IT HAPPENS WESTERN WAS THE NUMBERTWO COMMUNITYINVESTMENT THRIFT IN CALIFORNIA AND YET IT WAS SEIZED EXPERTS WE BROUGHT INTO WESTERN ESTIMATED THAT THE EXTRA COSTS TO THE TAXPAYER FROM A TAKEOVER AND ENSUING RTC FIRE SALE WILL BE 600 MILLION TO 1 BILLION IN SHORT FEDERAL TAKEOVER GUIDELINES SHOULD BE MODERATED OR REINTERPRETED PARTICULARLY FOR SITUATIONS WHERE A THRIFT'S PRINCIPAL FAILING IS THE CONDITION OF ITS MARKET LANGUAGE IN THE SENATE VERSION OF THE RTC FUNDING BILL INSTRUCTS THE RTC TO RECOGNIZE THE COMMUNITYBANKING POTENTIAL IN ITS PROCESS OF SELLING OFF THE ASSETS AND DEPOSITS OF INSTITUTIONS IT HAS SEIZED CONGRESS NEEDS TO AMEND THE BANKING ACTS TO SET PUBLIC POLICY THAT WOULD PRESERVE AND PROTECT INNERCITY AND RURAL LOWINCOME LENDING BEFORE AND AFTER SEIZURE UNDERSTANDABLY RTC PRACTICE UPON TAKEOVER IS TO HALT LENDING ACTIVITIES BUT MANY LENDERS HAVE DEMONSTRATED THAT LENDING FOR MORTGAGES AND EXTENDING CONSUMER CREDIT TO RESIDENTS OF OLDER NEIGHBORHOODS CAN BE DONE PROFITABLY INSTEAD OF THE CURRENT TAKE NO PRISONERS APPROACH REGULATORS SHOULD ANALYZE THE FRANCHISE OF AN AILING INSTITUTION WITH THE HELP OF THEIR CRA OFFICERS AND STAFF IDENTIFYING THE BRANCHES AND THE LENDING OFFICES THAT HAVE OUTSTANDING COMMUNITYINVESTMENT RECORDS THEN THEY SHOULD PULL FIVE TO NINE BRANCHES AND TWO OR THREE LENDING OFFICES INTO AN ONGOING COMMUNITY BANK GIVING PRESENT OWNERS TIME TO RAISE CAPITAL INCLUDING CAPITAL FROM MINORITY INVESTMENT SOURCES THE REMAINING ASSETS IN A BAD BANK COULD BE DISPOSED OF AS NEEDED IF MR CLINTON WANTS 100 NEW COMMUNITY BANKS HE MIGHT BEGIN BY RECOGNIZING THE 50 OR MORE TUCKED AWAY IN SEVERAL HUNDRED AILING THRIFTS AND BANKS BUT HE SHOULD ACT SOON THESE INSTITUTIONS WHICH CAN SERVE A VALUABLE FUNCTION AND SAVE THE TAXPAYER MONEY MAY BE SEIZED NOW THAT THE RTC IS GETTING ITS FUNDING FROM CONGRESS MR MARTIN A FORMER VICE CHAIRMAN OF THE FEDERAL RESERVE BOARD IS CHAIRMAN OF SOUTHERN CALIFORNIA FEDERAL SAVINGS & LOAN ASSOCIATION 9307060131 930706 GREAT AMERICAN COMMUNICATIONS CINCINNATI GREAT AMERICAN COMMUNICATIONS CO SAID IT COMPLETED THE FILING OF ITS PREVIOUSLY ANNOUNCED PREPACKAGED REORGANIZATION PLAN WHICH CALLS FOR THE COMPANY TO ISSUE COMMON STOCK AND 14 NOTES EFFECTIVE FRIDAY THE MEDIA COMPANY WAS DELISTED FROM THE NASDAQ'S NATIONAL MARKET SYSTEM BECAUSE OF ITS FAILURE TO MEET EXCHANGE LISTING REQUIREMENTS THE STOCK WILL CONTINUE TO TRADE OVER THE COUNTER HOWEVER UNDER THE SYMBOL GACC GREAT AMERICAN IS 40OWNED BY CINCINNATI FINANCIER CARL H LINDNER 9307060130 930706 CONSOLIDATED NATURAL GAS PITTSBURGH CONSOLIDATED NATURAL GAS CO SAID IT WILL REDEEM 148 MILLION OF SENIOR DEBENTURES ON AUG 16 THE NOTES INCLUDE 6 MILLION OF 775 NOTES DUE JULY 1 1994 AT 100 OF FACE VALUE PLUS ACCRUED INTEREST 8 MILLION PRINCIPAL AMOUNT OF 775 NOTES DUE OCT 1 1996 AT 10097 OF FACE VALUE PLUS ACCRUED INTEREST 16 MILLION PRINCIPAL AMOUNT OF 7625 NOTES DUE MAY 1 1992 AT 10106 OF FACE VALUE PLUS ACCRUED INTEREST 18 MILLION OF 775 NOTES DUE JUNE 1 1998 AT 10144 OF FACE VALUE PLUS ACCRUED INTEREST AND 100 MILLION PRINCIPAL AMOUNT OF 7625 NOTES DUE APRIL 1 1996 AT 1017 OF FACE VALUE PLUS ACCRUED INTEREST 9307060129 930706 INTERNATIONAL IRELAND'S GOVERNMENT DEFICIT DUBLIN THE EXCHEQUER BORROWING REQUIREMENT THE MOST WIDELY QUOTED MEASURE OF IRELAND'S GOVERNMENT DEFICIT FELL 92 MILLION PUNTS 1323 MILLION IN THE SECOND QUARTER THE CENTRAL BANK OF IRELAND SAID FRIDAY IN THE YEAREARLIER PERIOD THE MEASURE ROSE 164 MILLION PUNTS THE LATEST FIGURE FOLLOWS A 631 MILLION PUNT RISE IN THE FIRST QUARTER AND BRINGS THE YEARTODATE DEFICIT TO 523 MILLION PUNTS THE GOVERNMENT HAS FORECAST A BORROWING REQUIREMENT OF 760 MILLION PUNTS FOR 1993 FOR 1992 THE GOVERNMENT'S ACCOUNTS SHOWED A DEFICIT OF 713 MILLION PUNTS 9307060128 930706 HELPWANTED AD INDEX ROSE FIVE POINTS IN MAY NEW YORK HELPWANTED ADVERTISING ROSE FIVE POINTS IN MAY THE CONFERENCE BOARD REPORTED THE BOARD'S HELPWANTED ADVERTISING INDEX WHICH USES 1967 AS A BASE YEAR OF 100 WAS 101 IN MAY UP SIX POINTS FROM THE YEARBEFORE FIGURE THE INDEX LAST ROSE IN FEBRUARY TO 97 AND MAY'S READING OF 101 WAS THE HIGHEST SINCE 108 IN DECEMBER 1990 THE FIGURES ARE BASED ON A SURVEY OF HELPWANTED ADVERTISING IN 51 MAJOR US NEWSPAPERS THE CONFERENCE BOARD IS A NONPROFIT BUSINESSSUPPORTED RESEARCH ORGANIZATION RECENT INCREASES IN JOB ADVERTISING VOLUME CLEARLY REFLECT SOME IMPROVEMENT IN THE HIRING OUTLOOK SAID CONFERENCE BOARD ECONOMIST KEN GOLDSTEIN BUT MR GOLDSTEIN SAID THAT WHILE THERE IS SOME INDICATION THAT THE JOB OUTLOOK WILL TURN A LITTLE MORE POSITIVE THIS SUMMER CONCERN ABOUT THE JOBLESS RECOVERY' WILL NOT DISSIPATE QUICKLY AD VOLUME POSTED GAINS IN SEVEN OUT OF NINE REGIONS OVER THE PAST THREE MONTHS THE WEST NORTH CENTRAL AREA POSTED THE LARGEST GAIN IN MAY WITH AN INCREASE OF 108 TRAILED BY THE MOUNTAIN REGION 107 EAST SOUTH CENTRAL 99 AND EAST NORTH CENTRAL 82 THE SOUTH ATLANTIC AND NEW ENGLAND REGIONS FELL 35 AND 15 RESPECTIVELY 9307060127 930706 GILBERT ASSOCIATES SETS CHARGE READING PA GILBERT ASSOCIATES INC SAID IT WOULD TAKE A 22 MILLION PRETAX CHARGE IN THE SECOND QUARTER ENDED JULY 2 TO RESERVE FOR POSSIBLE SETTLEMENTS STEMMING FROM ITS 1988 CLOSURE OF A PLANT IN THE 1992 SECOND QUARTER THE COMPANY HAD NET INCOME OF 24 MILLION OR 30 CENTS A SHARE ON REVENUE OF 74 MILLION THE CONSULTING AND ENGINEERING COMPANY SAID IT HAS TAKEN PREVIOUS UNSPECIFIED RESERVES IN RELATION TO THE CLOSURE OF ITS ARCHITECTURAL OPERATION IN JACKSON MICH GILBERT HAD 1992 REVENUE OF 754 MILLION 9307060126 930706 REVIEW & OUTLOOK EDITORIAL YELLOW LIGHT RICHARD RIORDAN HAS NOW TAKEN OFFICE AS MAYOR OF LOS ANGELES AND WE CAN HOPE HE WILL STICK TO HIS PRIVATIZATION AGENDA FOR THE CITY AND FIND A WAY TO GET IT PAST AN OPPOSING BLOC ON THE CITY COUNCIL AND OTHER OBSTRUCTIONISTS SUCH AS DEMOCRATIC US SENATOR BARBARA BOXER SHE CAN CAUSE TROUBLE WITH FEDERAL FUNDING RESTRICTIONS FOR AIRPORTS WHILE THAT BATTLE BEGINS THE CONTRACTINGOUT OF SERVICES BY THE EQUALLY INSOLVENT STATE OF CALIFORNIA HAS HIT A SEVERE ROADBLOCK THE MAGNITUDE OF WHAT'S INVOLVED MAKES THIS WORTHY OF NOTICE ACROSS THE LAND TAXPAYERS AND LEGISLATORS ARE OBVIOUSLY ON A COLLISION COURSE IN MANY STATES OVER SPENDING PRIORITIES WITH THE PUBLIC DEMANDING GREATER EFFICIENCIES FROM THE BUREAUCRACIES BUT THE BUREAUCRATS HAVE BEEN AT THIS GAME A LONG TIME AND THE CALIFORNIA EXAMPLE SHOWS THEY AREN'T ABOUT TO GO QUIETLY ONLY THREE CATEGORIES OF THE PUBLIC SECTOR ARE INTENDED TO GROW IN CALIFORNIA THESE DAYS SCHOOLS PRISONS AND TRANSPORTATION THIS IS BECAUSE VOTERS DIRECTLY OR INDIRECTLY HAVE EARMARKED REVENUE FOR THOSE PURPOSES IN THE FIRST TWO LITTLE PRIVATIZATION PROGRESS CAN BE REPORTED BUT IN THE LATE 1980S THE STATE DEPARTMENT OF TRANSPORTATION SET ABOUT SHIFTING A GOOD SHARE OF ITS WORKLOAD TO TAXPAYING FIRMS AFTER THE VOTERS PASSED 40 BILLION FOR HIGHWAYS AND TRANSIT IN 1990 THE CALTRANS AGENCY HAD PLENTY TO PARCEL OUT BOTH IN BUILDING NEW ROADS AND SHORING UP BRIDGES FOR EARTHQUAKES IT SAW THE NEED FOR A ONETIME WORK FORCE INSTEAD OF ADDITIONS TO THE ONGOING STATE PAYROLL ARCHITECTS ENGINEERS SURVEYORS CONSTRUCTION INSPECTORS AND LANDSCAPE FIRMS WERE CALLED IN BUT THE EMPIRE IS FIGHTING BACK THE UNIONIZED CALTRANS DESIGNERS SOME 8000 STRONG SUED AND HAVE SUCCEEDED IN BLOCKING MUCH OF THE WORK MAINTAINING IT IS NOT REALLY TEMPORARY THE DEPARTMENT HAS SCALED BACK ITS CONTRACTS BY ABOUT 40 NOT ONLY IS THIS DELAYING PROJECTS THE VOTERS WERE PROMISED BUT ACCORDING TO THE LOS ANGELES TIMES IT COULD FORCE CONTRACTOR FIRMS MANY OF THEM OWNED BY WOMEN AND MINORITIES INTO BANKRUPTCY AND HAS ALREADY COST JOBS OF THE PEOPLE THEY'D HIRED THIS CAUTIONARY TALE SHOWS THAT FEW GOVERNMENT ENDEAVORS AND ESPECIALLY NOT THOSE THAT ARE PART OF A CRASH INFRASTRUCTURE PROGRAM ARE GOING TO BE REINVENTED WITHOUT A BITTER FIGHT FROM ENTRENCHED PUBLICSECTOR UNIONS THAT MEANS FIRST THAT WE BE MODEST IN OUR AMBITIONS FOR PUBLIC UNDERTAKINGS AND SECOND THAT ELECTED OFFICIALS WHO WANT TO TRY TO IMPORT MANAGEMENT EFFICIENCY HAD BETTER GIRD THEMSELVES WITH ALL THE COMMITTED HELP THEY CAN GET YOUR SERVE MR RIORDAN 9307060125 930706 BUSINESS BRIEF CHEMICAL BANKING CHASE MANHATTAN RECEIVE HIGHER RATINGS FROM MOODY'S NEW YORK MOODY'S INVESTORS SERVICE INC UPGRADED ITS RATINGS ON LONGTERM DEBT OF CHEMICAL BANKING CORP AND CHASE MANHATTAN CORP CITING POSITIVE EARNINGS PROSPECTS THE ACTIONS AFFECT 8 BILLION OF DEBT IN EACH CASE MOODY'S RAISED THE RATINGS FOR CHEMICAL'S SENIOR DEBT TO SINGLEA3 FROM BAA1 AND FOR SUBORDINATED DEBT TO BAA1 FROM BAA2 THE PREFERREDSTOCK RATING WAS RAISED TO SINGLEA3 FROM BAA2 THE RATINGS FOR THE LONGTERM DEPOSITS OF CHEMICAL'S SUBSIDIARY BANKS INCLUDING CHEMICAL BANK AND TEXAS COMMERCE BANK WERE UPGRADED TO SINGLEA1 FROM SINGLEA2 RATINGS FOR MANUFACTURERS HANOVER CORP ANOTHER UNIT WERE RAISED TO SINGLEA3 FROM BAA1 FOR SENIOR DEBT AND TO BAA1 FROM BAA2 FOR SUBORDINATED DEBT THE RATINGS FOR CHEMICAL LAST RAISED ABOUT A YEAR AGO AND ITS UNITS HAD BEEN PLACED UNDER REVIEW FOR POSSIBLE UPGRADE APRIL 22 MOODY'S UPGRADED CHASE MANHATTAN'S SENIOR DEBT TO BAA1 FROM BAA2 AND SUBORDINATED DEBT TO BAA2 FROM BAA3 THE RATING OF PREFERRED STOCK WAS ALSO RAISED TO BAA2 FROM BAA3 CHASE MANHATTAN BANK'S LONGTERM DEPOSITS WERE UPGRADED TO SINGLEA2 FROM SINGLE A3 WHILE RATINGS FOR SHORTTERM DEPOSITS WERE RAISED TO PRIME1 FROM PRIME2 CHASE MANHATTAN CORP AND ITS SUBSIDIARIES HAD BEEN PLACED UNDER REVIEW FOR POSSIBLE UPGRADE APRIL 20 AND WERE LAST UPGRADED ABOUT A YEAR AGO MOODY'S SAID CHEMICAL'S UPGRADES REFLECTED EARNINGS TRENDS AND PROGRESS IN REDUCING THE COMPANY'S PORTFOLIO OF IMPAIRED LOANS SUBSTANTIAL PROVISIONS HAVE BEEN TAKEN AGAINST NONPERFORMING ASSETS IN PAST QUARTERS AND THE INFLOWS OF NEW NONPERFORMERS ARE DECLINING MOODY'S SAID AN IMPROVEMENT IN CHASE'S CAPITAL MEASURES FROM ITS RECENT 750 MILLION EQUITY OFFERING AS WELL AS FROM FUTURE EARNINGS RETENTION PROMPTED ITS UPGRADE MOODY'S SAID BUT THE COMPANY'S CAPITAL RATIOS CONTINUED TO BE LOW RELATIVE TO OTHER US BANK HOLDING COMPANIES THE AGENCY SAID STANDARD & POOR'S CORP ALSO RECENTLY UPGRADED THE RATING ON ABOUT 67 BILLION OF CHASE MANHATTAN'S DEBT CITING THE COMPANY'S RECENT SALE OF STOCK AND PLANS TO SHED BAD ASSETS MOODY'S SAID IT EXPECTS IMPROVED CORE EARNINGS FOR CHEMICAL THE COMPANY'S NONINTEREST EXPENSES ARE BENEFITING FROM THE CONSOLIDATION OF THE MANUFACTURERS HANOVER OPERATIONS WHICH HAS GIVEN CHEMICAL LEADING FRANCHISES IN RETAIL AND MIDDLEMARKET BANKING IN THE NEW YORK REGION AS WELL AS CORPORATE BANKING NATIONWIDE HOWEVER CHEMICAL'S CAPITAL RATIOS ARE STILL SOMEWHAT LOW COMPARED WITH OTHER US BANK HOLDING COMPANIES MOODY'S SAID CHASE'S ASSET QUALITY IS STILL SOMEWHAT IMPAIRED WITH A MAJOR WEIGHTING OF COMMERCIAL REAL ESTATE FINANCING THE AGENCY SAID BUT SUBSTANTIAL PROVISIONS HAVE BUILT ADEQUATE RESERVE COVERAGE OF NONPERFORMING ASSETS MOODY'S SAID 9307060124 930706 BUSINESS BRIEF ASHLAND OIL INC REFINERY FIRE DISABLES CRUDE 103 CATALYTIC CRACKING UNITS ASHLAND OIL INC BASED IN ASHLAND KY SAID A FIRE AT ITS ST PAUL MINN REFINERY TEMPORARILY DISABLED ITS CATALYTIC CRACKING UNIT AND ONE OF TWO CRUDE UNITS ASHLAND HOPES TO HAVE THEM ON LINE BY TOMORROW NO ONE WAS INJURED IN THURSDAY'S BLAZE BLAMED ON A POWER OUTAGE CAUSED BY 100MILEANHOUR WINDS THE FIRE BURNED FOR ABOUT 20 MINUTES SIX WEEKS AGO A HEATER EXPLOSION FORCED ASHLAND TO TEMPORARILY CURTAIL CRUDEOIL PRCESSING AT ITS CATLETTSBURG KY REFINERY ASHLAND IS AN OIL CHEMICAL COAL AND CONSTRUCTION CONCERN 9307060123 930706 BUSINESS BRIEF INDEPENDENT INSURANCE GROUP INC CERTAIN LINES TO BE DROPPED DUE TO LOSSES FROM STORMS INDEPENDENT INSURANCE GROUP INC CITING LOSSES FROM HURRICANE ANDREW AND THE EAST COAST BLIZZARD THIS YEAR SAID IT WILL EXIT FROM ALL OF ITS NONHOME SERVICE PROPERTY CASUALTY LINES OF BUSINESS THE JACKSONVILLE FLA COMPANY SAID IT RECORDED AFTERTAX LOSSES OF 35 MILLION LAST YEAR PRIMARILY FROM HURRICANE ANDREW AND LOSSES OF 9 MILLION THIS YEAR LARGELY DUE TO THE BLIZZARD ALONG THE EAST COAST IN MARCH AND REVISED LOSS ESTIMATES BECAUSE OF ANDREW INDEPENDENT INSURANCE SAID THAT BY LEAVING THE NONHOME SERVICE AREA WHICH INCLUDES AUTOMOBILES AND VARIOUS OTHER PRODUCTS SOLD THROUGH DIFFERENT AGENTS IT WILL REDUCE ITS EXPOSURE TO CATASTROPHES AND VOLATILE EARNINGS THE COMPANY WILL CONTINUE TO OFFER HOMEOWNERS INSURANCE A SPOKESMAN SAID 9307060122 930706 TECHNOLOGY SMITHKLINE BEECHAM AGREEMENT PHILADELPHIA SMITHKLINE BEECHAM SAID IT ENTERED INTO AN EXCLUSIVE AGREEMENT WITH APPLIED MICROBIOLOGY INC TO JOINTLY DEVELOP TOOTHPASTES AND MOUTHWASHES USING APPLIED MICROBIOLOGY'S ANTIMICROBIAL AGENT AMBICINN SMITHKLINE BEECHAM WILL BE REQUIRED TO MEET CERTAIN DEVELOPMENT MILESTONES ON A TIMETABLE AND WOULD RECEIVE WORLDWIDE RIGHTS TO MARKET RESULTING PRODUCTS FOR SEVERAL YEARS FOLLOWING INTRODUCTION APPLIED MICROBIOLOGY IS A NEW YORK BIOPHARMACEUTICAL CONCERN SMITHKLINE BEECHAM DEVELOPS MANUFACTURES AND MARKETS PHARMACEUTICALS HEALTHCARE PRODUCTS AND LABORATORY TESTING SERVICES 9307060121 930706 BUSINESS BRIEF TANDEM COMPUTERS INC OPERATING LOSS TO BE POSTED FOR FISCAL THIRD QUARTER TANDEM COMPUTERS INC SAID IT WILL POST A FISCAL THIRDQUARTER OPERATING LOSS DASHING ANALYSTS' EXPECTATIONS BECAUSE OF SLUMPING PRODUCT SALES THE COMPANY IN CUPERTINO CALIF ALSO SAID IT INTENDS TO CUT COSTS TO REFLECT LOWER PRICES OF PRODUCTS IT IS ABOUT TO INTRODUCE THIS IS THE SECOND OPERATIONAL RESTRUCTURING ANNOUNCED BY THE COMPANY IN LESS THAN TWO YEARS THE ANALYST CONSENSUS WAS FOR THE COMPANY TO EARN 18 CENTS A SHARE IN THE PERIOD ENDED JUNE 30 ACCORDING TO ZACKS INVESTMENT RESEARCH TANDEM NETTED 174 MILLION OR 16 CENTS A SHARE ON SALES OF 5032 MILLION IN THE YEARAGO PERIOD THE MAKER OF COMPUTERS DESIGNED WITH SPECIAL BACKUP SYSTEMS TO PREVENT FAILURE SAID IT PLANS TO UNVEIL MORE POWERFUL LOWERPRICED SYSTEMS IN THE NEXT FEW WEEKS THE RESULTS WILL BE RELEASED JULY 28 ALONG WITH DETAILS OF THE RESTRUCTURING TANDEM SAID 9307060120 930706 CHRYSLER PLANS TO SELL ITS REMAINING 272 OF MITSUBISHI MOTORS HIGHLAND PARK MICH CHRYSLER CORP SAID IT PLANS TO FINISH CLOSING OUT ITS TWODECADE INVESTMENT IN MITSUBISHI MOTORS CORP BY SELLING ITS REMAINING 272 HOLDING SOMETIME THIS MONTH CHRYSLER'S INVESTMENT IN MITSUBISHI WHICH DATES BACK TO 1971 WAS PART OF DETROIT'S EARLY RESPONSE TO JAPANESE COMPETITION LINING UP JAPANESE PARTNERS AT ONE TIME CHRYSLER OWNED 24 OF THE JAPANESE AUTO MAKER FORD MOTOR CO HOLDS A 25 STAKE IN MAZDA MOTOR CORP AND GENERAL MOTORS CORP OWNS 375 OF ISUZU MOTORS LTD THE CHRYSLERMITSUBISHI RELATIONSHIP HAS BEEN ROCKY FOR YEARS MARKED BY DISPUTES OVER PRODUCT PLANNING AND MARKETING IN 1985 THE TWO COMPANIES JOINTLY ESTABLISHED AN ASSEMBLY OPERATION IN ILLINOIS DIAMOND STAR MOTORS BUT CHRYSLER SOLD ITS STAKE IN THAT VENTURE IN 1991 DESPITE THE PROBLEMS BOTH COMPANIES SAY THEY WILL CONTINUE THEIR JOINT MARKETING EFFORTS CHRYSLER SELLS MITSUBISHI PRODUCTS IN THE US AND MITSUBISHI IS CONSIDERING IMPORTING CHRYSLER SEDANS INTO JAPAN CHRYSLER EXPECTS TO NET ROUGHLY 150 MILLION FROM ITS PLANNED SALE IN JAPAN OF 2325 MILLION MITSUBISHI SHARES IN APRIL CHRYSLER SOLD 155 MILLION SHARES IN THE US FOR 100 MILLION ALTOGETHER THE INVESTMENT IN MITSUBISHI WAS PROFITABLE FOR CHRYSLER WHICH SOLD OFF SOME STOCK IN THE LATE 1980S WHEN THE TOKYO MARKETS WERE AT A PEAK BUT IT'S NOT CLEAR EXACTLY HOW MUCH PROFIT CHRYSLER WILL MAKE FROM ITS MITSUBISHI INVESTMENT 9307060119 930706 NEW BANK CHIEF IN THE PHILIPPINES TO FOCUS ON DEBT BY REGINALD CHUA STAFF REPORTER OF THE WALL STREET JOURNAL MANILA THE NEWLY NAMED HEAD OF THE PHILIPPINES' RESTRUCTURED CENTRAL BANK PLANS TO CONCENTRATE ON RESOLVING THE PROBLEM OF 308 BILLION PESOS 1151 BILLION IN FOREIGN AND DOMESTIC DEBT THE BANK WILL INHERIT AND CONCLUDING AN AGREEMENT WITH THE INTERNATIONAL MONETARY FUND ON A NEW ECONOMIC PROGRAM GABRIEL C SINGSON A FORMER SENIOR CENTRAL BANK OFFICIAL WHO WAS NAMED FRIDAY BY PRESIDENT FIDEL RAMOS TO BE THE FIRST GOVERNOR OF THE SOONTOBEFORMED BANGKO SENTRAL NG PILIPINAS SAID HE DOESN'T EXPECT MONETARY POLICY UNDER HIS TERM TO DIFFER MARKEDLY FROM THAT OF HIS PREDECESSOR AS OF NOW I DON'T SEE ANY SUBSTANTIVE DIFFERENCES MR SINGSON SAID IN A TELEPHONE INTERVIEW AFTER MEETING THE OUTGOING GOVERNOR JOSE CUISIA THE APPOINTMENT OF MR SINGSON A USTRAINED LAWYER WHO IS CURRENTLY PRESIDENT OF STATECONTROLLED PHILIPPINE NATIONAL BANK WILL TAKE EFFECT TUESDAY WHEN A LAW CREATING THE NEW CENTRAL MONETARY AUTHORITY TAKES EFFECT THE LAW WAS INTENDED TO OVERHAUL THE OLD DEBTRIDDEN CENTRAL BANK TO GIVE IT GREATER INDEPENDENCE AND IMPROVED FINANCIAL HEALTH HOWEVER THE LEGISLATION LEFT TO THE NEW GOVERNOR AND THE CENTRAL BANK'S POLICYMAKING MONETARY BOARD THE TASK OF WORKING OUT WHICH OF THE OLD BANK'S LIABILITIES IT SHOULD ASSUME AND THE DETAILS OF HOW TO RETIRE THE DEBT MR SINGSON WHO FOR 12 YEARS WAS THE NO 2 OFFICIAL IN THE CENTRAL BANK UNTIL HE RETIRED LAST YEAR SAID RESOLVING THE DEBT PROBLEM WILL BE HIS FIRST PRIORITY HE DECLINED HOWEVER TO DISCUSS SPECIFICS SAYING IT WAS PREMATURE THE BANK'S LIABILITIES ARE A POLITICALLY SENSITIVE ISSUE BECAUSE SOME OF THE DEBTS WERE ASSUMED IN THE LATE 1970S WHEN THENPRESIDENT FERDINAND MARCOS USED THE BANK TO AWARD FAVORS TO HIS CRONIES OTHERS STEM FROM THE HUGE FOREIGN DEBTS THE CENTRAL BANK TOOK OVER FROM PHILIPPINE COMPANIES AND BANKS WHEN THE COUNTRY'S FOREIGNDEBT CRISIS ERUPTED IN 1983 IF THE NEW CENTRAL BANK CAN'T SERVICE THE DEBTS IT WILL HAVE TO GO BACK TO CONGRESS ANNUALLY FOR BUDGET APPROVAL IN EFFECT UNDERCUTTING ITS INDEPENDENCE ALTHOUGH THE CENTRAL BANK HAS BEEN PROMISED A HEFTY 50 BILLIONPESO CAPITALIZATION ONLY 10 BILLION PESOS WILL BE PAID UP IMMEDIATELY NONETHELESS IT ISN'T CLEAR JUST WHERE THE MONEY WILL COME FROM THE PRESENT CENTRAL BANK ONLY HAS 10 MILLION PESOS IN SHARE CAPITAL ALTHOUGH IT IS LEGALLY REQUIRED TO HAVE 10 BILLION PESOS MR SINGSON SAID HIS SECOND PRIORITY IS TO PUSH FORWARD STALLED TALKS WITH THE IMF ON A NEW PROGRAM TO PUT THE PHILIPPINES BACK ON THE GROWTH TRACK DISCUSSIONS THAT BEGAN IN FEBRUARY HAVE SINCE STUMBLED OVER THE WIDE DIFFERENCES BETWEEN GOVERNMENT AND IMF PROJECTIONS FOR THE ECONOMY AND FOR REVENUE COLLECTION IN PARTICULAR STILL MANILA'S ECONOMIC MANAGERS HAVE APPEARED AMBIVALENT ABOUT THE NEED FOR SUCH A PROGRAM THE LAST STABILIZATION PROGRAM SUCCESSFULLY BROUGHT INFLATION AND GOVERNMENT DEFICITS DOWN BUT CUTS IN CAPITAL SPENDING ALSO STIFLED GROWTH FURTHERMORE THE GOVERNMENT HAS LONG COME UNDER ATTACK FROM MEMBERS OF CONGRESS FOR LETTING THE IMF DICTATE ECONOMIC POLICY MR SINGSON'S NOMINATION STILL MUST BE CONFIRMED BY THE CONGRESSIONAL COMMISSION ON APPOINTMENTS 9307060118 930706 TECHNOLOGY BRIEF ADVANCED MICRO DEVICES INC STATE APPEALS COURT REFUSES TO REVISIT 386CHIP RULING THE CALIFORNIA COURT OF APPEALS DENIED A REQUEST MADE BY ADVANCED MICRO DEVICES INC FOR A REHEARING IN A CASE AGAINST INTEL CORP OVER THE RIGHTS TO PRODUCE CLONES OF INTEL'S 386 COMPUTER CHIPS IN MAKING ITS RULING THE COURT REFUSED TO ALTER A DECISION IT MADE LAST MONTH WHICH GUTTED A 1992 ARBITRATION AWARD THAT GAVE AMD THE RIGHT TO MANUFACTURE CLONES OF THE CHIPS WHICH ARE WIDELY USED AS THE BRAINS OF PERSONAL COMPUTERS THE ACTION CLEARS THE WAY FOR THE CASE TO GO TO THE CALIFORNIA SUPREME COURT AMD PLANS WITHIN THE NEXT TWO WEEKS TO ASK THAT COURT TO HEAR THE CASE AN AMD SPOKESMAN SAID BOTH AMD AND INTEL SAID THEY EXPECTED THE RULING THE COURT OF APPEALS RULING IN JUNE FREED INTEL TO PRESS A LONGSTANDING FEDERAL COPYRIGHTINFRINGEMENT CASE AGAINST AMD INTEL HAS SUGGESTED THAT DAMAGES IN BOTH CASES COULD TOP 1 BILLION THE TWO SEMICONDUCTOR MAKERS FOR YEARS HAVE BEEN LOCKED IN LITIGATION OVER CHIPRELATED COPYRIGHTS AND PATENTS 9307060117 930706 CZECH BANKERS BASK IN GLOW OF BOND DEAL INTEREST OF WESTERN FIRMS IN ISSUE SUGGESTS START OF LOCAL CAPITAL MARKET BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON SO WHAT WAS HANSJEORG RUDLOFF THE CHAIRMAN OF FINANCIERE CREDIT SUISSEFIRST BOSTON DOING OUT ON THE TOWN WITH CZECH BANKERS AT LONDON'S POSH CLUB ANNABEL'S THE OTHER NIGHT ENTERTAINING MIDDLELEVEL MANAGERS OF CESKA SPORITELNA AS SAYS TIBOR NEMES SENIOR MANAGER IN THE CAPITALMARKETS DEPARTMENT OF THE CZECH SAVINGS BANK AND WHY BECAUSE CESKA IS THE LEAD UNDERWRITER ON THE BIGGEST AND PERHAPS MOST INTERESTING DOMESTIC CORPORATEBOND DEAL YET IN EASTERN EUROPE THE 21 BILLION KORUNA 719 MILLION ISSUE FOR CEZ AS THE CZECH POWER COMPANY SIGNIFIES THE BEGINNINGS OF A LOCAL CAPITAL MARKET THAT MAY OVER TIME MAKE IT EASIER FOR OTHER CZECH COMPANIES TO RAISE MONEY BY ISSUING DEBT OR EVEN ISSUING EQUITY BANKERS SAY AND INTEREST IN CEZ FROM WESTERN INVESTMENT BANKS THAT AREN'T EVEN IN THE UNDERWRITING SYNDICATE SUGGESTS THE BANKS MAY BEGIN TURNING THEIR EFFORTS TO PITCHING BOND DEALS FROM PRIVATIZATION PEOPLE HAVE STARTED TO THINK ABOUT CAPITAL NEEDS AND THAT'S WHAT'S GOT TO HAPPEN IF COMPANIES IN THE REGION ARE GOING TO BE STRUCTURED AND OPERATE LIKE WESTERN COMPANIES IN A MARKET ECONOMY SAYS ONE BANKER BASED IN LONDON MR RUDLOFF'S CREDIT SUISSEFIRST BOSTON CZECH UNIT UNDERWROTE SOME SMALLER LOCAL ISSUES DURING THE LAST EIGHT MONTHS OR SO AND THE CZECH NATIONAL BANK AND FINANCE MINISTRY HAVE DONE BIGGER ISSUES ON THE EUROBOND MARKET BUT UNTIL NOW CZECH COMPANIES HAVEN'T BEEN ABLE TO GET DOMESTIC FINANCING BEYOND EXPENSIVE SHORTTERM BANK LOANS CESKA'S MR NEMES SUGGESTS THAT IF CEZ CAN GET MONEY WITHOUT SELLING ITSELF TO FOREIGNERS WHY COULDN'T OTHER WELLKNOWN CZECH COMPANIES LIKE BEER MAKER BUDVAR WHICH ANHEUSERBUSCH COS DESPERATELY WANTS TO CONTROL INVESTMENT BANKS SELLING THE IDEA OF A STRATEGIC INVESTOR USUALLY SAY THESE COMPANIES NEED WESTERN KNOWHOW TO ENTER WESTERN MARKETS OR TO UPGRADE TO WESTERN STANDARDS BUT THAT KNOWHOW DOESN'T NECESSARILY HAVE TO COME AT THE PRICE OF SELLING A CHUNK OF EQUITY SAYS ALLYSON STEWART WHO RUNS HER OWN MARKETINGCONSULTING FIRM IN LONDON THERE'S NO REASON WHY THEY COULDN'T HAVE A STRATEGIC ALLIANCE WITH A BEER IMPORTER OR EVEN USE ANHEUSER JUST AS A MARKETING PARTNER SAYS MS STEWART WHO HAS ADVISED OTHER CZECH BEER COMPANIES GETTING A CHUNK OF BUDVAR IS ATTRACTIVE TO ANHEUSER SHE SAYS BECAUSE THEY GET CONTROL OF A BRAND NAME WHICH IS WORTH A LOT OF MONEY TELEPHONE COMPANIES ARE EVEN BETTER EXAMPLES OF THE ABILITY TO RAISE MONEY WITHOUT SELLING OUT SAYS ONE BANKER BASED IN PRAGUE INSTEAD OF SELLING A PIECE OF EQUITY TO A WESTERN PHONE COMPANY WHY NOT ISSUE BONDS OR EVEN STOCK THEN MODERNIZE THROUGH CONTRACTS WITH WESTERN EQUIPMENT SUPPLIERS HE ASKS PHONE NETWORKS USUALLY ARE LUCRATIVE CASH COWS BANKERS TRUST NEW YORK CORP CESKA'S ADVISER WHICH HELPED THE SAVINGS BANK WRITE THE CEZ PROSPECTUS UP TO WESTERN DOCUMENTATION STANDARDS SAYS IT DID SO TO FOSTER A LOCAL BOND MARKET THAT WOULD SPAWN OTHER LOCAL FINANCING OPPORTUNITIES I AND MY COLLEAGUES FELT THAT GETTING A LOCAL BOND MARKET DEVELOPED WAS IN THE INTEREST OF ALL PARTICULARLY CZECH COMPANIES THAT NEED ACCESS TO FINANCING THROUGH SECURITIES SAYS ALEX SEIPPEL WHO HEADS BANKERS TRUST'S PRAGUE OFFICE THE SAVINGS BANK PREVIOUSLY WAS THE LARGEST BUYER OF CZECH BONDS AND WE HAVE TAUGHT THEM HOW TO STRUCTURE AND SELL THEIR OWN DEALS THE CEZ ISSUE ITSELF IS A FIVEYEAR CALLABLE BOND THAT PAYS 17 INTEREST IT IS BEING ISSUED IN A CURRENCY THAT HAS BEEN STABLE FOR OVER A YEAR IN A REGION WHERE UNTIL RECENTLY INFLATION WAS IN THE SINGLE DIGITS NOMURA INTERNATIONAL AS WELL AS OTHER BANKS NOT IN THE SYNDICATE ARE SAID TO HAVE CONSIDERED WHETHER INTERNATIONAL CLIENTS COULD BUY THE BONDS BANKERS EXPECT CEZ TO ALSO TRY TO RAISE MONEY THROUGH SEPARATE ISSUES IN THE EUROBOND AND POSSIBLY JAPANESE MARKETS MR SEIPPEL OF BANKERS TRUST SAYS DEMAND FROM INVESTORS CAUSED THE BOND ISSUE TO BE RAISED FROM 15 BILLION KORUNAS THAT DEMAND IS SOMEWHAT IRONIC CONSIDERING THE BROUHAHA CEZ HAS CAUSED IN OTHER SPHERES COMPLETION OF ITS TEMELIN NUCLEAR POWER PLANT IN SOUTHERN BOHEMIA HAS BEEN THE SOURCE OF TENSION BETWEEN THE CZECH REPUBLIC AND AUSTRIA WHICH LOBBIED HARD AGAINST IT THE PLANT USES RUSSIANDESIGNED REACTORS THAT AREN'T OF THE CHERNOBYLTYPE SAYS WESTINGHOUSE ELECTRIC CORP WHICH HAS A 400 MILLION CONTRACT TO SUPPLY CONTROL SYSTEMS FUEL AND GENERALLY BRING THE PLANT UP TO WESTERN STANDARDS TEMELIN REACTORS FOR ALL INTENTS AND PURPOSES LOOK LIKE ONE OF WESTINGHOUSE'S PRESSURIZED REACTORS SAYS RAY SERO GENERAL MANAGER OF THE COMPANY'S INTERNATIONAL NUCLEAR ARM BUT A REPORT IN JUNE SUGGESTS THAT EVEN THE NEW RUSSIAN VVER1000 PRESSURIZED WATER REACTORS MAY HAVE SOME FLAWS CRACKS AND MALFUNCTIONS HAVE FORCED SHUTDOWNS AT 35 OF THE 64 STANDARDDESIGN STEAM GENERATORS IN THE 16 VVER1000 PLANTS IN THE FORMER SOVIET UNION SAYS A STUDY WRITTEN BY PROF YU KORYAKIN STILL THE GOVERNMENT IS SQUARELY BEHIND COMPLETING TEMELIN WHICH REPRESENTS A MUCH NEEDED AND CLEANER SOURCE OF POWER INDEED POLLUTION SPEWED BY LIGNITE COAL POWER STATIONS OF 1950S VINTAGE OFTEN MAKE BREATHING DIFFICULT IN PRAGUE DURING THE WINTER SOME SAY CEZ WHICH IS 71OWNED BY THE GOVERNMENT OVERALL REPRESENTS A RELATIVELY SAFE INVESTMENT BANKERS SAY BECAUSE OF THE GOVERNMENT'S ROLE THE UTILITY WILL LIKELY BE ABLE TO GET RATE RELIEF IN THE FUTURE AS THE COUNTRY CONTINUES ITS TRANSITION TO A MARKET ECONOMY 9307060116 930706 WHO'S NEWS WESTERN DIGITAL TAPS HAGGERTY FOR TOP POSTS IRVINE CALIF WESTERN DIGITAL CORP SAID CHARLES A HAGGERTY WAS ELECTED CHAIRMAN AND CHIEF EXECUTIVE OFFICER HE SUCCEEDS ROGER W JOHNSON WHO WAS APPOINTED BY PRESIDENT CLINTON TO HEAD THE GENERAL SERVICES ADMINISTRATION MR HAGGERTY 51 YEARS OLD JOINED THE COMPUTER DISK DRIVE MAKER A YEAR AGO AS PRESIDENT AND CHIEF OPERATING OFFICER HE PREVIOUSLY SPENT 28 YEARS AT INTERNATIONAL BUSINESS MACHINES CORP WHERE HE HELD A VARIETY OF MANAGEMENT AND EXECUTIVE POSTS MR JOHNSON 59 JOINED WESTERN DIGITAL IN 1982 AND BECAME CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN 1984 HE WAS THE FIRST REPUBLICAN NAMED TO HEAD AN AGENCY OF THE CLINTON ADMINISTRATION THE GSA AN INDEPENDENT AGENCY OF THE EXECUTIVE BRANCH SETS POLICY FOR OTHER EXECUTIVE BRANCH AGENCIES ON MATTERS SUCH AS PROCUREMENT PROPERTY MANAGEMENT AND TELECOMMUNICATIONS 9307060115 930706 WHO'S NEWS UAL CORP UAL CORP CHICAGO PATRICIA SWEENEY FISHER 38 YEARS OLD FORMERLY ASSISTANT TREASURER BANKING AND RISK MANAGEMENT FOR AMOCO CORP WAS NAMED VICE PRESIDENT AND TREASURER OF UNITED AIRLINES A UNIT OF THIS AIRLINE HOLDING COMPANY EFFECTIVE AUG 9 SHE SUCCEEDS TERRY L HALL WHO LEFT THE COMPANY 9307060114 930706 AIRGAS BUYS TWO DISTRIBUTORS WILMINGTON DEL AIRGAS INC SAID IT ACQUIRED TWO CALIFORNIABASED INDUSTRIAL GAS DISTRIBUTORS PDIWESTERN DISTRIBUTING GROUP INC IN ANAHEIM AND GENERAL WELDING SUPPLY CO OF GARDENA BOTH COMPANIES WILL OPERATE AS PART OF SOUTHERN CALIFORNIA AIRGAS INC ANNUAL SALES OF PDIWESTERN A SUBSIDIARY OF PHOENIX DISTRIBUTORS INC ARE ABOUT 18 MILLION GENERAL WELDING HAS ANNUAL SALES OF ABOUT 25 MILLION AIRGAS A DISTRIBUTOR OF INDUSTRIAL MEDICAL AND SPECIALTY GASES AND RELATED EQUIPMENT IN THE US HAS ANNUAL SALES OF ABOUT 500 MILLION 9307060113 930706 ABREAST OF THE MARKET CLINTON ECONOMIC POLICY WILL POUND STOCKS SOME SAY BY STEPHEN E FRANK STAFF REPORTER OF THE WALL STREET JOURNAL WARNING BILL CLINTON MAY BE DANGEROUS TO THE STOCK MARKET'S HEALTH IT'S EASY TO RELAX AMID EXPECTATIONS OF A SUMMER RALLY BUT SOME ANALYSTS ARE ARGUING THAT ANY ADVANCE WILL BE ONLY A PRELUDE TO A BAD STUMBLE THE RESULT OF THE CLINTON ADMINISTRATION'S ECONOMIC POLICIES SO FAR THE ADMINISTRATION HAS MANAGED TO LIFT OR PUMMEL SOME INDIVIDUAL STOCKS WHILE THE OVERALL MARKET REMAINED RELATIVELY UNAFFECTED BUT NOT FOR MUCH LONGER WHAT I'M REALLY WORRIED ABOUT NOW IS THE NEXT BIG IMPACT CLINTON WILL HAVE ON STOCKS WON'T BE ON SINGLE ISSUES IT'LL BE ON THE OVERALL MARKET SAYS HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY EVEN BEFORE MR CLINTON TOOK OFFICE IN JANUARY MANY INVESTORS WERE LOADING UP ON STOCKS THEY FIGURED WOULD BENEFIT FROM THE PRESIDENT'S ECONOMIC PLANS EXPECTED SPENDING INCREASES ON INFRASTRUCTURE TECHNOLOGY EDUCATION AND THE ENVIRONMENT MADE SUCH CLINTON PORTFOLIOS COMPOSED OF STOCKS IN THOSE INDUSTRIES VERY ATTRACTIVE AT THE SAME TIME AMBITIOUS PLANS FOR THE OVERHAUL OF HEALTH CARE AND A BUNCH OF SOCALLED SINTAX PROPOSALS KILLED THE ALLURE OF LONGPOPULAR TOBACCO AND DRUG STOCKS SO FAR THE CLINTON PORTFOLIOS HAVEN'T BEEN ESPECIALLY PROFITABLE THE PROBLEM IS THAT THE PRESIDENT FOR A NUMBER OF REASONS HASN'T BEEN ABLE TO MAKE GOOD ON ALL HIS CAMPAIGN PROMISES STILL CLINTON PORTFOLIOS MAY BE THE BEST PLACE FOR INVESTORS TO WEATHER WHAT SEVERAL ANALYSTS PREDICT WILL BE A STORM IN THE STOCK MARKET LATER THIS YEAR OR IN 1994 THE CLINTON STOCKS THAT DID WELL HAVE PULLED BACK AND THE CLINTON STOCKS THAT GOT DRUBBED THE ANTICLINTON STOCKS HAVE RECOVERED SOME MR JOHNSON SAYS THE EUPHORIA OF THE CLINTON ELECTION AND THE CLINTON STOCKS IS GONE AND WE'RE BACK TO BUSINESS AS USUAL THINKING ABOUT INTEREST RATES AND THE ECONOMY AND EARNINGS MANY ANALYSTS NOW AGREE THAT MR CLINTON'S ECONOMIC PROGRAM WILL EVENTUALLY MAKE ITS WAY THROUGH CONGRESS ALBEIT IN MODIFIED FORM FOR MR JOHNSON THAT'S A WORRISOME PROSPECT HE THINKS THE PRESIDENT'S PROGRAM OF DEFICIT REDUCTION IS TOO RADICAL AND COULD CAUSE A RECESSION BY THE FIRST HALF OF 1994 WE COULD BE FACED WITH SOME RATHER DISMAL PROSPECTS FOR THE ECONOMY HE SAYS THE OUTLOOK WILL START TO DARKEN MR JOHNSON THINKS THERE'S A STRONG CHANCE OF A BONECRACKING RECESSION STARTING ROUGHLY AROUND THE FOURTH QUARTER OF 1994 BUT INVESTORS WILL SEND THE STOCK MARKET SPIRALING DOWNWARD MUCH EARLIER IN ANTICIPATION OF HARDER TIMES HE SAYS THERE'S JUST NO DOUBT THAT WHEN YOU RAISE TAXES AND REDUCE SPENDING THAT CAN BE DEFLATIONARY MR JOHNSON SAYS EVEN THOUGH THAT MIGHT LEAD TO LOWER LONGTERM INTEREST RATES THAT'S NOT LIKELY TO LEAD TO AN INCREASE IN PRIVATE SECTOR BORROWING TO FINANCE SPENDING AND INVESTING BECAUSE THE PRIVATE SECTOR IS SO LOADED WITH DEBT NOW MR JOHNSON'S PROGNOSIS FOR THE STOCK MARKET IS FAIRLY BLEAK I DON'T THINK IT'S A PROFOUND FORECAST TO SAY THAT THERE WILL BE A BEAR MARKET IN THE NEXT TWO TO FOUR YEARS AND THAT THE MARKET WILL DECLINE MORE THAN 30 WHEN IT HAPPENS HE SAYS HOW CAN INVESTORS PROTECT THEMSELVES BY STAYING INVESTED IN WHAT AMOUNTS TO A CLINTON PORTFOLIO HE SAYS YOU SHOULD BE BUYING STOCKS LIKE UNITED HEALTHCARE INTEL AND CATERPILLAR BUT JUST DON'T GET TOO CARRIED AWAY WITH THEM HE SAYS WARNING THAT EVEN FAVORED INDUSTRIES COULD BE IN FOR SOME ROUGH TIMES AND STAY CLEAR OF THE DRUG INDUSTRY HE ADDS OTHER ANALYSTS DON'T EXPECT A RECESSION BUT THEY DO SEE STOCK PRICES TANKING AFTER THE SUMMER JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ PREDICTS THAT THE ADMINISTRATION'S ECONOMIC POLICIES EVENTUALLY WILL LEAD TO RISING INFLATION THAT WILL BE THE ULTIMATE RESULT HE SAYS OF THE FEDERAL RESERVE'S TRYING TO PROP UP AN ECONOMY BURDENED BY HIGHER TAXES WE KNOW THAT PRESIDENT CLINTON IS A DEMOCRAT AND NOT JUST A PLAIN DEMOCRAT BUT A SOUTHERN POPULIST DEMOCRAT HE SAYS POPULISTS ALMOST BY DEFINITION DON'T LIKE TIGHT MONEY MR MCALINDEN PREDICTS THAT AS INFLATION INCREASES LONGTERM INTEREST RATES WILL RISE AND THAT WILL BE TROUBLESOME FOR THE STOCK MARKET AS YOU GET THE INITIAL RISE IN INTEREST RATES THE STOCK MARKET IS GOING TO GET CLOBBERED HE WARNS HE SUGGESTS THAT WORRIED INVESTORS CONSTRUCT A PORTFOLIO THAT WILL PROTECT THEM FROM INFLATION IN THE LONG RUN I'D SHORT TREASURYS AND BUY GOLD STOCKS MR MCALINDEN SAYS FOR THE NEXT THREE YEARS WE'LL WANT TO TALK ABOUT INFLATIONHEDGED STOCKS IN ENERGY PRECIOUS METALS AND INDUSTRIAL CYCLICALTYPE MATERIALS TO BE SURE NOT ALL ANALYSTS ARE AS TROUBLED BY THE MARKET'S PROSPECTS AND SOME PAINT A FAR ROSIER PICTURE PETER CANELO MARKET STRATEGIST AT NATWEST SECURITIES IS UPBEAT ABOUT THE ECONOMY THOUGH HE TOO WORRIES ABOUT RENEWED INFLATION WE'RE PROBABLY IN THE MIDST OF A NORMAL CYCLICAL REBOUND IN THE INFLATION RATE MR CANELO SAYS THOUGH HE SAYS ANY RISE IN INFLATION HAS LESS TO DO WITH MR CLINTON AND MORE TO DO WITH LOOSE MONETARY POLICY MR CANELO ADVISES INVESTORS TO PICK STOCKS THAT TEND TO THRIVE IN INFLATIONARY EXPANDING ECONOMIES WE'RE ADVOCATING THAT THEY SHOULD BE GETTING INTO EARNINGSDRIVEN STOCKS WHICH ARE A FORM OF INFLATIONHEDGING HE SAYS COMPANIES THAT DO WELL WITH A GROWING ECONOMY AND THAT BENEFIT FROM RISING INDUSTRIAL PRICES ARE THE COMPANIES THAT WE HAVE BEEN RECOMMENDING STOCK PRICES TUMBLED AFTER A DISCOURAGING EMPLOYMENT REPORT FOR JUNE THE DOW JONES INDUSTRIAL AVERAGE SLID 2657 POINTS TO 348397 THE STANDARD & POOR'S 500STOCK INDEX FELL 318 TO 44584 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SANK 152 TO 24712 DECLINING ISSUES OUTPACED ADVANCERS 1083 TO 826 TRADING ON THE BIG BOARD TOTALED 2127 MILLION SHARES DOWN FROM 2812 MILLION THURSDAY WORLDWIDE STOCK PRICES FELL THE DOW JONES WORLD STOCK INDEX LOST 102 TO 10530 FOR THE WEEK THE DOW INDUSTRIALS LOST 02 THE S&P 500 FELL 04 AND THE BIG BOARD'S COMPOSITE INDEX SLIPPED 003 STOCK PRICES WERE DEPRESSED BY A LABOR DEPARTMENT REPORT THAT NONFARM PAYROLLS ROSE BY JUST 13000 IN JUNE FAR SHORT OF THE 130000 INCREASE THAT ANALYSTS HAD EXPECTED THE UNEMPLOYMENT RATE INCHED UP TO 7 OF THE WORK FORCE FROM 69 IN MAY THE JOBS DATA CAPPED A WEEK OF DISAPPOINTING ECONOMIC REPORTS STRENGTH IN THE BOND MARKET SOFTENED THE STOCK MARKET'S FALL AFTER THE EMPLOYMENT DATA ANALYSTS SAID LONGTERM GOVERNMENT SECURITIES JUMPED MORE THAN 1/4 POINT DRIVING THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR BOND DOWN TO 666 TJX SLUMPED 2 5/8 TO 30 1/4 FIRST MANHATTAN ANALYST THOMAS TASHJIAN LOWERED HIS INVESTMENT RATING ON THE FRAMINGHAM MASS APPAREL RETAILER'S STOCK TO HOLD FROM BUY INTERNATIONAL BUSINESS MACHINES LOST 1 TO 48 1/4 THE WALL STREET JOURNAL REPORTED THAT ACCORDING TO INDUSTRY OFFICIALS THE COMPUTER CONCERN IS PREPARING TO ANNOUNCE A NEW 2 BILLION CHARGE AGAINST ITS EARNINGS TO COVER THE COST OF ADDITIONAL WORK FORCE REDUCTIONS BAUSCH & LOMB DROPPED 1 3/8 TO 49 AFTER GOLDMAN SACHS ANALYST LARRY KEUSCH LOWERED HIS INVESTMENT RATING ON THE STOCK TO MARKET PERFORMER FROM MODERATE OUTPERFORMER AND CUT HIS 1993 AND 1994 EARNINGS ESTIMATE HE SAID THE ROCHESTER NY MEDICAL PRODUCTS COMPANY'S INTERNATIONAL SALES ARE SLUGGISH MOBIL FELL 1 3/4 TO 72 5/8 OPPENHEIMER ANALYST PAUL TING DOWNGRADED THE STOCK TO MARKET PERFORMER FROM ANALYST BUY HE CITED CONCERNS THAT OIL PRICES WILL SLIDE BECAUSE OF THE LIKELIHOOD IRAQ WILL RESUME SOME OIL EXPORTS HOME SHOPPING NETWORK JUMPED 1 1/4 TO 12 7/8 THE FEDERAL COMMUNICATIONS COMMISSION VOTED TO GIVE OVERTHEAIR HOME SHOPPING TELEVISION STATIONS THE SAME RIGHTS AS OTHER BROADCASTERS ON LOCAL CABLE TV SYSTEMS FIRST USA SLIPPED 2 3/4 TO 40 AFTER THE DALLAS CREDIT CARD ISSUER AND TRANSACTION PROCESSOR DISCLOSED PLANS FOR A PUBLIC OFFERING OF FIVE MILLION COMMON SHARES HOLDERS WILL SELL FOUR MILLION SHARES AND ONE MILLION WILL BE NEWLY ISSUED AMERICAN MEDICAL HOLDINGS EASED 1/2 TO 10 3/4 BEAR STEARNS ANALYST ROBERT HOEHN DOWNGRADED THE DALLAS HOSPITAL OPERATOR TO HOLD FROM BUY 9307060112 930706 WHO'S NEWS AMERICAN BRANDS INC AMERICAN BRANDS INC OLD GREENWICH CONN BARRY M BERISH 61 YEARS OLD WAS NAMED CHAIRMAN OF THE JIM BEAM BRANDS CO DISTILLED SPIRITS UNIT OF THIS COMPANY WHICH ALSO HAS INTERESTS IN TOBACCO PRODUCTS AND FINANCIAL SERVICES MR BERISH WILL CONTINUE AS CHIEF EXECUTIVE OFFICER OF THE UNIT AND ALSO CONTINUES AS VICE PRESIDENT OF THE DISTILLED SPIRITS DIVISION OF AMERICAN BRANDS RICHARD B REESE 52 WAS NAMED PRESIDENT OF THE JIM BEAM UNIT TO SUCCEED MR BERISH MR REESE WHO HAD BEEN EXECUTIVE VICE PRESIDENT WILL CONTINUE AS CHIEF OPERATING OFFICER CRAIG M SMITH 43 CHIEF ADMINISTRATIVE OFFICER AND TOM V WILEN 41 HEAD OF INTERNATIONAL STRATEGIC PLANNING WERE BOTH NAMED EXECUTIVE VICE PRESIDENTS OF JIM BEAM 9307060111 930706 WHO'S NEWS PRESIDENT OF KINARK JONES PLANS TO RETIRE AT END OF THE MONTH TULSA OKLA KINARK CORP SAID THAT ITS PRESIDENT HARRY T JONES WOULD RETIRE AT THE END OF THE MONTH THE CHEMICAL AND STEELGALVANIZING CONCERN SAID THE 55YEAROLD EXECUTIVE WOULD CONTINUE TO SERVE AS A DIRECTOR AND WOULD BE AVAILABLE TO SERVE AS A CONSULTANT TO THE COMPANY THE COMPANY SAID THAT MR JONES'S DUTIES AS PRESIDENT WOULD BE DIVIDED UP AMONG THREE NEWLY PROMOTED EXECUTIVES BRETT R GOFF 37 WAS NAMED PRESIDENT OF KINARK'S BOYLES GALVANIZING UNIT WHERE HE HAD BEEN A VICE PRESIDENT GLENN J GIBISCH 40 WAS NAMED PRESIDENT OF KINARK'S LAKE RIVER BULKLIQUID TERMINAL BUSINESS WHERE HE HAD BEEN A VICE PRESIDIENT AND MANAGER MARK F FRIEDLEIN 37 WAS NAMED PRESIDENT OF THE KINPAK SPECIALCHEMICALS PACKAGING UNIT WHERE HE HAD BEEN A VICE PRESIDENT AND MANAGER ALL THREE WILL REPORT TO PAUL R CHASTAIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER WHO SAID THE MANAGEMENT CHANGES WILL PLACE MORE RESPONSIBILITY IN THE HANDS OF THE YOUNGER YET SEASONED MANAGEMENT TEAM THAT KINARK IS FORTUNATE TO HAVE 9307060110 930706 LETTERS TO THE EDITOR NATIONAL SERVICE CLINTON PLAN CAN WORK NICOLA CLARK SUGGESTS HOW TO DRAFT A NATIONAL SERVICE PLAN EDITORIAL PAGE MAY 18 THAT CONGRESS MAY HAVE TO RESTORE THE DRAFT IF PRESIDENT CLINTON'S SOCIAL PROGRAMS ARE TO BE MADE AFFORDABLE AS AN EXAMPLE SHE CITES GERMANY'S PROGRAM FOR CONSCIENTIOUS OBJECTORS TO MILITARY SERVICE KNOWN AS ZIVILDIENST THERE ARE TWO BIG PROBLEMS WITH MS CLARK'S PROPOSAL NAMELY HISTORY AND TIMING THE HISTORICAL PROBLEM IS THAT WEST GERMANY DID NOT DESIGN ZIVILDIENST AS A LOWCOST SOCIAL WELFARE PROGRAM AS MS CLARK INFERRED ZIVILDIENST CAME INTO BEING BECAUSE THE POSTWORLD WAR II WEST GERMAN CONSTITUTION STATED THAT NO ONE SHALL BE FORCED TO DO WAR SERVICE WITH ARMS AGAINST HIS CONSCIENCE WHEN CONSCRIPTION WAS RESTORED IN 1956 THAT CLAUSE ASSURED THE RIGHT OF YOUNG MEN TO APPLY FOR CONSCIENTIOUSOBJECTOR STATUS THOSE WHO CONVINCED A TRIBUNAL THEY WERE GENUINE COS WERE REQUIRED TO PERFORM ALTERNATIVE CIVILIAN SERVICE ALMOST IDENTICAL TO THE AMERICAN POLICY WHEN THE DRAFT IS IN EFFECT AND SO ZIVILDIENST WAS BORN NOT AS A SOCIAL PROGRAM BUT AS AN ATTEMPT TO MAKE THE DRAFT EQUITABLE FOR YEARS ONLY A FEW THOUSAND YOUNG MEN WERE IN ZIVILDIENST AT ANY ONE TIME AND IT HAD NO MORE IMPACT THAN VISTA AN ORIGINAL WAR ON POVERTY PROGRAM THAT HAS NEVER ENROLLED MORE THAN 5500 PARTICIPANTS AT A TIME HAS HAD IN THE US IN THE 1970S AND MOST NOTABLY IN 1984 MEASURES WERE TAKEN THAT MADE IT EASIER FOR YOUNG MEN TO QUALIFY AS COS TODAY GERMANY HAS A DE FACTO NATIONAL SERVICE WHEREIN YOUNG MEN BASICALLY CAN CHOOSE BETWEEN SPENDING 12 MONTHS IN THE MILITARY AND 15 MONTHS IN ZIVILDIENST MS CLARK'S PROBLEM WITH TIMING IS THAT THE DRAFT IS NOT NOW ON THE AMERICAN AGENDA AN AGENDA ALREADY OVERLOADED WITH EVERYTHING FROM BOSNIA TO HEALTH CARE WHAT IS ON THE TABLE IS PRESIDENT CLINTON'S PLAN WHICH WOULD HAVE 150000 PEOPLE MOSTLY YOUNG ADULTS IN FULLTIME CIVILIAN NATIONAL SERVICE BY 1997 IT IS NOT A PERFECT PLAN IT WOULD BE BETTER IF IT PROJECTED AN IMAGE OF SERVICE TO OTHERS RATHER THAN A WAY TO PAY BACK COLLEGE LOANS BUT THESE ARE REFINEMENTS THAT CAN BE ADDED AS THE PLAN PROVES ITSELF IN THE NEXT COUPLE OF YEARS IT IS BASED ON YEARS OF RESEARCH AND EXPERIMENTATION WE KNOW THAT THE VALUE OF SERVICES RENDERED BY THE AVERAGE YOUNG PERSON IN FULLTIME SERVICE IS GREATER THAN THE SUM OF THE SERVER'S STIPEND HEALTH CARE AND OTHER COSTS TO THE GOVERNMENT WE KNOW THAT THE TYPICAL SERVER GAINS MORE IN WORK EXPERIENCE CAREER DEVELOPMENT AND AN AWARENESS OF THE NEEDS OF OTHERS THAN THE TYPICAL PERSON NOT IN SERVICE THUS THE CLINTON NATIONAL SERVICE PLAN IS BOTH DOABLE AND AFFORDABLE 9307060109 930706 BUSINESS BRIEF AMERITECH CORP STAKE IN NEW ZEALAND FIRM TO BE CUT TO 30 BY SALE AMERITECH CORP SAID IT AGREED TO SELL ABOUT 109 MILLION SHARES OR 46 OF TELECOM CORP OF NEW ZEALAND LTD TO THREE AFFILIATES OF CAPITAL GROUP INC LOS ANGELES AN INVESTMENT FIRM TERMS WEREN'T DISCLOSED THE REGIONAL BELL OPERATING COMPANY SAID IT EXPECTS TO RECOGNIZE A ONETIME AFTERTAX GAIN OF 62 MILLION OR 23 CENTS A SHARE IN THE THIRD QUARTER IN THE YEAREARLIER PERIOD AMERITECH REPORTED NET INCOME OF 3305 MILLION OR 123 A SHARE ON REVENUE OF 28 BILLION AMERITECH SAID THE SALE WOULD REDUCE ITS STAKE IN TELECOM TO ABOUT 30 THE COMPANY MUST FURTHER REDUCE ITS OWNERSHIP TO 2495 BY SEPT 12 1994 ACCORDING TO AGREEMENTS WITH TELECOM AND BELL ATLANTIC CORP TELECOM IS THE PRINCIPAL SUPPLIER OF TELECOMMUNICATIONS SERVICES IN NEW ZEALAND 9307060108 930706 HEARD ON THE STREET ANALYSTS SHIFT GEARS ON GM AS COMPANY TRIES TO GAIN GROUND BY STEERING A SIMPLER COURSE BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL THE CHEVROLET MONTE CARLO A STYLISH COUPE THAT GENERAL MOTORS IS REINTRODUCING NEXT YEAR BOASTS SLEEK LINES AND ATTRACTIVE FEATURES SUCH AS AIR BAGS FOR BOTH THE DRIVER AND FRONT PASSENGER BUT FOR INVESTORS THE MOST EXCITING ASPECT OF THE CARS IS SOMETHING CAR & DRIVER WON'T BE WRITING ABOUT SIMPLICITY THE INSTRUMENT PANELS WILL COME IN ONLY ONE COLOR GRAY AND THAT IS ONE REASON THAT SOME OF WALL STREET'S SKEPTICAL AUTO ANALYSTS ARE SUDDENLY TURNING BULLISH ON GM AFTER PILING UP STEEP LOSSES FOR THREE YEARS TRYING TO SELL THOUSANDS OF PRODUCTS IN A PROFUSION OF SHAPES AND COLORS GM AND ITS LARGEST DIVISION CHEVROLET ARE FINALLY ABOUT TO LAUNCH A SERIES OF SIMPLER POTENTIALLY MORE PROFITABLE VEHICLES TO MAKE SURE WALL STREET GETS THE MESSAGE CHEVY IS TAKING SAMPLES OF ITS FUTURE PRODUCTS ON THE ROAD A BREAK WITH ITS PAST PRACTICE OF KEEPING THEM UNDER WRAPS CHEVY IS SHOWING PROTOTYPES TO DEALERS AUTO ANALYSTS AND REPORTERS AND THE PRODUCTS ARE GENERALLY GETTING POSITIVE REVIEWS THIS TOGETHER WITH OTHER HINTS THAT GM MAY BE ON THE REBOUND HAS PUSHED THE STOCK UP 12 FROM MAY'S 39 TO A FRIDAY CLOSE OF 43 5/8 OFF 3/8 AND SOME ANALYSTS ARE SAYING THE STOCK COULD EASILY CONTINUE ITS CLIMB ANALYST PHILIP K FRICKE AT PRUDENTIAL SECURITIES LAST MONTH UPGRADED GM FROM BUY TO HIS SINGLE BEST IDEA HE SEES GM STOCK HITTING 60 WITHIN 12 MONTHS AND PERHAPS 75 IN THE NEXT TWO YEARS OTHERS NOTE THAT WHILE FORD MOTOR AND CHRYSLER SHARES HAVE SOARED SINCE LAST YEAR GM HAS GAINED ONLY ABOUT 20 IN A STRENGTHENING AUTO MARKET MICHAEL P WARD OF KIDDER PEABODY RECOMMENDS THE STOCK AS A WAY TO PLAY A SUCCESSFUL CORPORATE RESTRUCTURING AND A COMING TWOTOTHREEYEAR UPTURN IN THE AUTO CYCLE WE'VE HAD A LOT OF CONFIRMATION RECENTLY THAT THIS SHIP IS TURNING AROUND SAYS STEPHEN J GIRSKY AT PAINEWEBBER AMONG THE MOST RECENT GOOD PORTENTS GM HAD A PROFIT FOR THE FIRST QUARTER THIS YEAR AND IS EXPECTED TO POST A PROFITABLE SECOND QUARTER GM'S SATURN DIVISION ANNOUNCED LAST MONTH THAT IT IS OPERATING PROFITABLY FOR THE FIRST TIME IN ITS HISTORY GM HAS CUT BACK ON LOWPROFIT FLEET SALES AND INCREASED MOREPROFITABLE RETAIL SALES ROUGHLY 12 THIS YEAR IS LIKELY TO BE GM'S FIRST MONEYMAKING YEAR SINCE 1989 SOME EVEN SAY GM COULD OUTPERFORM FORD AT THE ROAD SHOWS CHEVROLET ENGINEERS ARE SAYING THAT THE NEXT GENERATION OF PRODUCTS WILL BE PARED DOWN ENOUGH TO LEAD TO ADDITIONAL PROFITS THE NEW S10 PICKUP FOR EXAMPLE WILL BE OFFERED THIS FALL IN ONEQUARTER THE NUMBER OF BUILD COMBINATIONS OFFERED IN THE CURRENT MODEL WE'VE STOPPED TRYING TO BE ALL THINGS TO ALL PEOPLE SAYS JAMES C PERKINS HEAD OF THE CHEVROLET DIVISION HE TOUTS THE PICKUP'S SMOOTH INTERIOR AS EVIDENCE THAT THE AUTO MAKER IS LISTENING TO CUSTOMERS OTHER STEPS INCLUDE A CUTBACK TO NINE DIFFERENT RADIOS FROM 49 GM IS GETTING MORE AGGRESSIVE ABOUT COSTCUTTING EXECUTIVES CAN'T GET APPROVAL FOR A NEW PRODUCT UNLESS THEY SHOW PRESIDENT JOHN F SMITH JR THAT IT WILL MATCH OR AT LEAST COME CLOSE TO THE COST STANDARDS OR BENCHMARKS SET BY MOREEFFICIENT RIVALS BENCHMARKING HELPED GM TO SLICE 10 FROM ITS CAPITAL SPENDING PLAN FOR THE NEXT DECADE AND SAVE 65 MILLION A YEAR ON ONE ENGINE PROGRAM BUT EVEN GM OPTIMISTS SAY IT WILL TAKE TWO TO THREE MORE YEARS FOR GM'S DOMESTIC VEHICLE OPERATIONS TO FULLY CLOSE THE COST GAP WITH FORD ANOTHER BIG QUESTION MARK IS THE LABOR CONTRACT TO BE RENEGOTIATED THIS FALL GM NEEDS WORKERS' COOPERATION IF IT IS TO IMPROVE EFFICIENCY AS PLANNED THEN THERE'S THE CONTINUING CONTROVERSY INVOLVING 19731987 PICKUP TRUCKS WITH SIDEMOUNTED GAS TANKS GM FACES A GOVERNMENT REQUEST FOR A RECALL AND MORE THAN 30 SEPARATE LAWSUITS FROM TRUCK OWNERS CALLING THE DESIGN DANGEROUS MOREOVER GM HAS A TRACK RECORD OF MISJUDGING THE MARKET ITS NEEDLENOSED LUMINA MINIVAN HAS POOR VISIBILITY THE CHEVROLET CAPRICE WAS DEEMED UGLY BY SOME CUSTOMERS BUT THE CURRENT ROUND OF SNEAK PREVIEWS SUGGESTS GM HAS AVOIDED SUCH MISSTEPS AT LEAST FOR THIS FALL THE CAPRICE HAS BEEN REWORKED AND RENAMED IMPALA SS WINNING RAVES FROM AUTO BUFFS AND WHEN PAUL LIENERT A CAR COLUMNIST FOR THE DETROIT FREE PRESS TESTDROVE THE NEW OLDSMOBILE AURORA HE WROTE THAT THE AURORA'S STYLING GRACE AND POWER ESTABLISH NEW BENCHMARKS FOR DOMESTIC LUXURYSPORT SEDANS HE DEEMED THE CAR AS GOOD AS TOYOTA MOTOR'S LEXUS LS400 AND 10000 LESS COSTLY OF COURSE SO FAR THE UPTURN IN AUTO SALES HAS BEEN COMING LARGELY WITHOUT GM THE AUTO MAKER'S LIGHTTRUCK SALES THIS YEAR ARE UP 17 BUT LARGELY BECAUSE OF GM'S AGING PRODUCTS MANY OF WHICH LACK CRUCIAL FEATURES SUCH AS AIRBAGS THE COMPANY'S OVERALL CAR SALES FOR THE YEAR ARE DOWN 27 YEAR ENDED DEC 31 1992 FIRST QUARTER MARCH 31 1993 9307060107 930706 BUSINESS BRIEF WALKER INTERACTIVE SYSTEMS INC ANALYSTS' EARNINGS ESTIMATES ARE CALLED TOO OPTIMISTIC WALKER INTERACTIVE SYSTEMS INC SAID IT WILL POST A SMALL OPERATING PROFIT FOR THE SECOND QUARTER AND WARNED THAT ANALYSTS' EXPECTATIONS ARE OVERLY OPTIMISTIC ANALYSTS ARE EXPECTING THE SAN FRANCISCO SOFTWARE FIRM TO EARN 17 CENTS A SHARE FOR THE PERIOD ACCORDING TO ZACKS INVESTMENT RESEARCH IN THE 1992 SECOND QUARTER WALKER EARNED 24 MILLION OR 19 CENTS A SHARE ON SALES OF 157 MILLION WALKER SAID IT WOULD BE MINIMALLY PROFITABLE BEFORE UNSPECIFICED RESTRUCTURING CHARGES BECAUSE OF TECHNOLOGICAL SHIFTS AND THE RECESSION'S EFFECTS IT SAID THE CHARGES ARE AIMED AT STREAMLINING ITS MARKETING AND SALES OPERATIONS THE COMPANY SAID IT ANTICIPATES PROFITABLE OPERATIONS AT MINIMAL LEVELS IN THE SECOND HALF OF THE YEAR IN OVERTHECOUNTER TRADING FRIDAY WALKER WAS QUOTED AT 7 UNCHANGED 9307060105 930706 BUSINESS WORLD LOCALES STILL SHOPPING FOR A CORPORATE CATCH BY TIM W FERGUSON WE'RE UP TO 350000 PER JOB IN THE BIDDING WAR AMONG STATES AND LOCALITIES FOR FACTORY WORK THAT LATEST LURE FROM THE STATE OF KENTUCKY TO A CANADIAN STEEL PARTNERSHIP IS SUCH A BIG CHUNK OF TAXPAYER CHANGE THAT IT STIRRED UP CATTY TALK ON THE FRONT PAGE OF CITY & STATE A TRADE PUBLICATION FOR GOVERNMENT MANAGERS THE 140 MILLION IN POTENTIAL TAX CREDITS TO DOFASCO INC AND COSTEEL INC FOR BRINGING 400 MINIMILL JOBS TO A NORTHERN RURAL COUNTY BROKE ALL RECORDS EVEN FOR THE BIGBOUNTY BLUEGRASS STATE A FEW MILLION MORE IN PLANTRELATED GOODIES WERE THROWN IN IT'S NOT AS BIG OVERALL AS THE 300 MILLION PACKAGE THAT IS TO BRING A UNITED AIRLINES MAINTENANCE FACILITY TO INDIANA KENTUCKY ACTUALLY DROPPED OUT OF THAT CONTEST BUT THEN THAT PROJECT IS SUPPOSEDLY FOR 6300 JOBS AT THE NOWSHRINKING CARRIER AIRLINES AS IT HAPPENS HAVE BEEN MASTERS AT THIS GAME NOT ONLY ARE THEY JOBINTENSIVE BUT THEY HAVE CARRIED IN THEIR POCKETS THE TASTIEST OF TREATS FOR A DEVELOPMENTHUNGRY REGION THE CHANCE TO BE A FLIGHT HUB NORTHWEST AIRLINES HAD BOTH HUB AND HEADQUARTERS GOING FOR IT WHEN IT INDUCED PUBLIC BODIES IN MINNESOTA IN 1991 TO PROMISE 800 MILLION IN RETURN FOR SITING STRUCTURES IN THE FROZEN NORTH THAT DEAL IS PARTLY ON HOLD WHAT WITH NORTHWEST HANGING ON FOR DEAR LIFE TODAY SOME GOVERNORS AND OTHERS HAVE SAID IT'S TIME TO PUT A DAMPER ON THIS CONTEST FOR CORPORATE BRICKANDMORTAR THE KENTUCKY STEEL DEAL SET SOME OF THOSE TONGUES WAGGING AGAIN THE NATIONAL ASSOCIATION OF STATE DEVELOPMENT AGENCIES SAYS ITS MEMBERS HAVE BEEN CHASTENED AND NOW CAST A WIDE NET INSTEAD OF BAITING EXPENSIVE TAX HOOKS FOR A SELECT CATCH THERE IS EVIDENCE OF GREATER INTEREST IN LOAN GRANT OR EQUITY CHUM FOR ENTERPRISES SUCH AS PROTEAN GOV BILL WELD'S BIOTECH BENEFITS IN MASSACHUSETTS NEW ISSUES OF INDUSTRIALDEVELOPMENT BONDS A POPULAR DEVICE NATIONALLY THAT SINCE THE MID1980S HAS BEEN AIMED AT HELPING SMALL CONCERNS TOTALED ABOUT 2 BILLION A YEAR UNTIL THEIR FEDERAL TAX EXEMPTION RAN OUT LAST YEAR IT MAY BE RESTORED SOON BUT DATA THAT MIGHT DEFINE A TREND AWAY FROM SNAGGING THE BIG ONE ARE SCARCE A BIG FISH IS STILL IRRESISTIBLE TO MANY LOCALITIES WHATEVER THE RISKS EIGHT EAGER BIDDERS REMAINED IN THE HUNT TO HOST MANUFACTURE OF MCDONNELL DOUGLAS'S NEXTGENERATION MD12 EVEN AS DEMAND FOR NEW PASSENGER PLANES CRASHED AND THE PROJECT SOME WOULD SAY THE COMPANY WAS LEFT AT THE GATE THE CORPORATE LINE TO CITIES AND STATES WAS EXPRESSED TO ME BY THE AGGRESSIVE PRESIDENT OF AMERICA WEST AIRLINES IN 1990 IF YOU BECOME BIG ENOUGH AND CRITICAL ENOUGH YOU WILL GET ASSISTANCE THAT YOU WOULD NEVER GET IF YOU WEREN'T THAT SIZE AT THE TIME HIS UPSTART CARRIER WANTED THE PHOENIX AREA TO BUILD IT A 50 MILLION FACILITY EVENTUALLY THE LOCAL OFFICIALS SAID NO BUT BEFORE AMERICA WEST COULD TAKE OFF FOR SOMEWHERE ELSE IT DOVE INTO BANKRUPTCY LIKE MOST BUSTED AIRLINES IT CONTINUES TO FLY AND MICHAEL CONWAY IS NOW CEO AS WELL AS PRESIDENT THE WHADDYA OFFERING MINDSET IS NOW PERVASIVE AMONG ESTIMABLE EMPLOYERS GENERALLY IN CORPORATE AMERICA EXPERTS SAY IT'S BECOME ALMOST A BIRTHRIGHT THE MACNEIL/LEHRER NEWS HOUR ON PBS REPORTED LAST WEEK BUILD A FACTORY GET A TAX BREAK A POLITICIAN WILL DO HANDSTANDS FOR A RIBBON CUTTING TURNING GOVERNMENT ON ITS HEAD ISN'T ALWAYS A BAD THING BUT AS ROBERT CRANDALL OF THE BROOKINGS INSTITUTION SUGGESTS IN HIS NEW LITTLE BOOK MANUFACTURING ON THE MOVE IT'S FAR BETTER TO HAVE GOOD POLICIES FOR THE ECONOMY AS A WHOLE REASONABLE TAXATION AND REGULATION FRUGAL GOVERNMENT AND A PEACEFUL ORDER THAT ENCOURAGES PRODUCTION AND STUDY THAT PLUS CREATIVE SEEDING WITH TRAINING AND RESEARCH CENTERS THAT CAN BE PUBLIC OR PRIVATE SHOULD PROVIDE THE BASIS FOR SOUND GROWTH NEARLY ANYWHERE BUT THAT DOESN'T CAUSE A BIG SPLASH SPECIAL PACKAGES DO AND THEY HAVE GONE TO CONCERNS RANGING FROM JAPANESEBASED AUTO GIANTS TO LOCAL SODA BOTTLERS DEFENSE CONVERSION IS THE CURRENT RAGE AND THE FEDS ARE AROUND TO HELP WITH THAT ONE SAME WITH TIMBER HARVESTING AND YOU CAN BET DISLOCATED FARMERS IF WE EVER WERE SERIOUS ENOUGH ABOUT DEFICIT REDUCTION TO DO SOMETHING ABOUT AGRICULTURAL PROGRAMS A VIRTUAL PARODY OF THIS CIVIC ARTIFICE OCCURS WITH PROFESSIONAL SPORTS METROPOLITAN AREAS FALL OVER THEMSELVES TO TOSS COINS IN THE FOUNTAINS OF THE NATIONAL LEAGUES SOMETIMES EVEN BUILDING PLAY PALACES ON SPEC WHILE ANGLING TO GET OR KEEP A BIGTIME FRANCHISE HARD AS IT IS TO IMAGINE GEORGE STEINBRENNER IS TODAY GIVEN DECENT ODDS OF EXTRACTING A FEW HUNDRED MILLION BUCKS FROM THE CITIZENS OF NEW YORK TO KEEP HIS YANKEES FROM UPROOTING TO NEW JERSEY CITIZENS DO HOLD A CHECK ON THESE EXCESSES TAKE COLORADO WHICH ACCORDING TO AVIATION WEEK HAS A CONSERVATIVE REPUTATION AMONG BUSINESS DEVELOPMENT LEADERS FOR ITS LARGESSE THAT'S DEBATABLE SEE THE ROCKIES BASEBALL DEAL BUT GONZO TAX REBEL DOUGLAS BRUCE WITH A STATEWIDE INITIATIVE APPROVED IN 1992 APPEARS TO BE GIVING THIS CONSERVATISM NEW FIRMAMENT MR BRUCE BOASTS THAT HIS MEASURE AN OVERALL LID ON THE GROWTH OF GOVERNMENT WITHOUT VOTER APPROVAL HAS STOPPED THE USE OF BOND AND TAX GIMMICKS FOR ENTICING CORPORATIONS TO DROP IN HE ARGUES IT IS WRONG TO COMMIT RESIDENT TAXPAYERS TO CARRY A LOAD FOR SUCH NEWCOMERS EVEN IF THOSE ARRIVALS OSTENSIBLY ENHANCE THE LONGTERM TAX BASE LEGISLATORS THIS SPRING AGREED REJECTING A FUND IN THE MANY MILLIONS FOR ZIFFDAVIS THE COMPUTER MAGAZINE PUBLISHER TO MOVE TO DENVER BUT COLORADO DOESN'T SEEM TO BE HURTING TWO RECENT SURVEYS HAVE FOUND THE STATE'S ECONOMIC INDICATORS LEAD THE NATION THESE INDUCEMENTS MAY NOT MATTER MUCH ANYWAY PROF MARGARET DEWAR OF THE UNIVERSITY OF MICHIGAN TOLD MACNEIL/LEHRER THAT THEY HAVE LITTLE OR NO EFFECT ON LOCATION AND EXPANSION DECISIONS TO BUSINESSES THE ONLY KINDS OF CASES WHERE THEY DO HAVE AN EFFECT IS WHEN THERE ARE TWO SIMILAR SITES CLOSE TOGETHER SO THAT ALL COSTS ARE PRETTY MUCH THE SAME EXCEPT THE TAXES OTHER CONSIDERATIONS ARE OVERWHELMING IN MAKING A LOCATION DECISION WEATHER ACCESS TO SUPPLIERS AND MARKETS THE NATURE OF THE WORK FORCE AND THE OVERALL COST OF LIVING MATTER MORE THAN THE SPECIAL FAVORS THAT POLITICIANS AND THEIR DEVELOPMENT BARKERS CAN DO THAT OUGHT TO BE A CAUTION TO A STATE LIKE CALIFORNIA WHICH IS LOOKING FOR WAYS TO GET BACK ON TRACK WITH BUSINESS SURE IT NEEDS TO ELIMINATE OUTRAGEOUS ADDONS TO PAYROLL COSTS BUT UNTIL THE PRICE OF HOUSING AND THE QUALITY OF WORKERS ARE IN LINE WITH WHAT OTHER OUTDOOR PLACES HAVE TO OFFER CALIFORNIA'S GOING TO BE A HARD SELL OF COURSE IF IT HAD 350000 TO SPEND ON EACH JOB AS KENTUCKY APPARENTLY DOES IT COULD BUY CONDOS FOR THE NEW EMPLOYEES AND HAVE MONEY LEFT OVER TO TEACH THEM TO READ AND COUNT BUT THEN SOME OTHER STATE WOULD JUST RAISE THE ANTE 9307060104 930706 BUSINESS BRIEF TORAY INDUSTRIES INC JAPANESE COMPANY TO SHIFT MORE OPERATIONS OVERSEAS TORAY INDUSTRIES INC A JAPANESE MAKER OF SYNTHETIC FIBERS PLANS TO SHIFT MORE OF ITS TEXTILE AND PLASTIC PRODUCTION TO SUBSIDIARIES ELSEWHERE IN ASIA TO OFFSET LOSS OF REVENUE BECAUSE OF THE STRONG YEN WE'D LIKE TO KEEP HIGHVALUE PRODUCTION HERE IN JAPAN AND MOVE SOME LOWERVALUE MANUFACTURING ABROAD SAID KATSUNOSUKE MAEDA PRESIDENT OF TORAY AT A MEETING WITH REPORTERS FRIDAY MR MAEDA SAID TORAY AIMS TO RAISE ITS OVERSEAS PRODUCTION TO ABOUT 30 OF TOTAL OUTPUT FROM THE CURRENT 13 OVER THE NEXT TWO TO THREE YEARS MOST OF THAT PRODUCTION WOULD BE IN PLASTIC RESIN AND FIBERS WHILE CHEMICAL AND DRUG MAKING WOULD REMAIN LARGELY IN JAPAN 9307060103 930706 ENTERPRISE GOVERNMENT WATCH RABBITFRIENDLY TECHNOLOGY GETS QUICK ACTION AT DOT BY BRENT BOWERS STAFF REPORTER OF THE WALL STREET JOURNAL A NEW TECHNOLOGY THAT DELIGHTS ANIMAL LOVERS SAILS THROUGH DOT A CALIFORNIA COMPANY HAS APPARENTLY FOUND ONE WAY TO CATCH BUREAUCRATS' ATTENTION RESCUE RABBITS FOR YEARS THE ONLY APPROVED WAY TO TEST THE CORROSIVITY OF A CHEMICAL FOR SHIPPING PURPOSES WAS TO SEE WHETHER IT BURNED THROUGH THE SKIN OF LIVE RABBITS THEN INVITRO INTERNATIONAL DEVELOPED A SYSTEM FOR MEASURING CORROSIVITY IN TEST TUBES THE LITTLE IRVINE CALIF FIRM SOUGHT APPROVAL FOR ITS TECHNOLOGY FROM THE US DEPARTMENT OF TRANSPORTATION LAST OCTOBER WHILE SMALLBUSINESS CHIEFS COMPLAIN OF FOOTDRAGGING AT MANY GOVERNMENT AGENCIES INVITRO PRESIDENT WILLIAM FISHER SAYS THE DOT STAFF HELPED US TREMENDOUSLY WITH THIS WHOLE PROCESS THEY BENT OVER BACKWARDS IT WAS A DREAM THE NEW SYSTEM GOT THE GREEN LIGHT IN APRIL THE FIRST TIME A FEDERAL AGENCY HAS APPROVED A NONANIMAL TEST FOR CLASSIFYING CORROSIVES TO MEET REGULATORY REQUIREMENTS SALES OF INVITRO'S CORROSITEX TESTING KIT TOTALED 200000 IN THE FIRST THREE WEEKS OF MAY AND HAVE GONE UP FROM THERE VERY STRONGLY MR FISHER SAYS THAT IS QUITE A TURNAROUND FOR A COMPANY THAT THE EXECUTIVE SAYS RAN OUT OF CASH ONE YEAR AGO ALAN ROBERTS THE OFFICIAL IN CHARGE OF DOT'S HAZARDOUSMATERIALS SAFETY PROGRAM ACKNOWLEDGES THAT HE PUT THE PROJECT ON THE FRONT BURNER BECAUSE OF ITS POTENTIAL IMPACT THE STAFF WAS VERY CONVINCED IT WAS A WORTHY UNDERTAKING HE ADDS BUT MR ROBERTS SAYS HIS STAFF HANDLED THE APPLICATION STRICTLY ON ITS MERITS HE EMPHASIZES THAT HIS DEPARTMENT SCRUTINIZED THE NEW TESTING METHOD TO MAKE CERTAIN IT WAS ON SOLID GROUND THE OFFICIAL SAYS HE WASN'T SWAYED BY THE ONSLAUGHT OF MAIL FROM ANIMALRIGHTS ACTIVISTS SUPPORTING THE NEW SYSTEM BUT THE AGENCY DID GET 23000 CARDS ANIMALRIGHTS GROUPS ARE ECSTATIC THIS HAS THE POTENTIAL TO SAVE MILLIONS OF ANIMALS FROM EXTREME AND UNNECESSARY SUFFERING SAYS HOLLY HAZARD EXECUTIVE DIRECTOR OF THE DORIS DAY ANIMAL LEAGUE IN WASHINGTON DC IN OTHER AGENCIES SHE SAYS WE COME UP AGAINST ROADBLOCK AFTER ROADBLOCK BUT DOT ACTED WITH ASTOUNDING SPEED CORPORATE CUSTOMERS SAY CORROSITEX IS CHEAPER FASTER MORE ACCURATE AND SIMPLER TO PERFORM THAN RABBIT TESTS TIM ROY A SENIOR RESEARCH ASSOCIATE AT MOBIL OIL CORP SAYS IT CAME ON THE MARKET JUST IN TIME FOR AN OCT 1 DEADLINE FOR SHIPPERS TO SPECIFY THE DEGREE OF A CHEMICAL'S CORROSIVITY ILLINOIS CLAMPS DOWN ON A CRUSADER FOR ELDERCARE REFORM AN ESTIMATED 35 LAWENFORCEMENT OFFICERS AND GOVERNMENT OFFICIALS RAIDED DAVID FOSTER'S BOARDANDCARE HOME EARLY LAST MONTH REMOVED ALL 18 RESIDENTS AND CLOSED THE FACILITY MR FOSTER WHO HAS BEEN LOBBYING SINCE 1990 TO OVERHAUL THE ILLINOIS NURSING HOME CARE ACT DENOUNCES THE MOVE AS A WITCHHUNT THE AUTHORITIES SAY THEY ACTED TO PROTECT HELPLESS OLD PEOPLE AGAINST CRIMINAL NEGLIGENCE MEANTIME MR FOSTER'S PUSH FOR AN EASING OF RESTRICTIONS ON THE ESTIMATED 4000 BOARDANDCARE FACILITIES IN THE STATE HAS BEEN DEALT A SERIOUS SETBACK TAZEWELL COUNTY STATE'S ATTORNEY ERIK BLANC SAYS THE BLITZ BY THE COUNTY SHERIFF'S DEPARTMENT STATE POLICE AND ILLINOIS DEPARTMENT OF PUBLIC HEALTH CAME ONE DAY AFTER A RESIDENT OF THE FOSTER FAMILY LIVING CENTER DIED FROM VARIOUS MALADIES COMPOUNDED BY CHRONIC MEDICAL NEGLECT MOST OTHER RESIDENTS REQUIRED HOSPITAL TREATMENT OR EVALUATION HE SAYS AND IN ANY CASE FIRECODE VIOLATIONS AT THE HOME POSED AN EXTREME FIRE HAZARD MR FOSTER WHOSE LOBBYING EFFORTS WERE DESCRIBED IN THIS COLUMN LAST MONTH WAS CHARGED WITH CRIMINAL MEDICAL NEGLECT OF AN ELDERLY DISABLED PERSON AND CRIMINAL HOUSING MANAGEMENT MR FOSTER DENIES THE CHARGES AND SAYS THEY ARE POLITICALLY MOTIVATED HE SAYS HE RAN A CLEAN EFFICIENT FACILITY AT ONETHIRD THE COST OF A NURSING HOME AND WONDERS WHY THE STATE DIDN'T ACT SOONER IF HE WERE VIOLATING THE LAW HE SAYS SEVERAL RESIDENTS PLEADED TO BE ABLE TO STAY AND HAD TO BE WRENCHED FROM A DOORWAY THEY WERE CLUTCHING THE WOMAN WHO DIED WAS TERMINALLY ILL AND UNDER A DOCTOR'S CARE AND HAD EXPRESSED HER WISH TO SPEND HER LAST DAYS IN THE HOME HE SAYS HE SAYS HER FOUR SONS AS WELL AS THE RELATIVES OF THE OTHER RESIDENTS ARE 100 LINED UP BEHIND ME ONE SON RUSSELL LOOK SAYS HIS MOTHER WAS ACTIVE UNTIL THE DAY BEFORE HER DEATH AND RECEIVED EXCELLENT CARE AT THE FACILITY DIANE FREEBURG THE DAUGHTER OF ANOTHER RESIDENT SAYS HER FATHER BECAME DISTRAUGHT AFTER BEING MOVED OUT HE'S NOW IN AN 'APPROVED' NURSING HOME AND IS TOTALLY CONFUSED HE HAS GIVEN UP HE WON'T EAT OR TAKE HIS MEDICATION SHE SAYS I'M DISGUSTED WITH WHAT HAPPENED MR FOSTER SAYS HE WILL FILE LAWSUITS IN FEDERAL COURT THIS MONTH SEEKING TO OVERTURN THE ILLINOIS LAW AS A VIOLATION OF THE CONSTITUTIONAL RIGHTS OF BOARDANDCAREHOME OWNERS AND RESIDENTS SALAD OIL TURNS OUT NOT TO BE HAZARDOUS AFTER ALL IN FEBRUARY DOT PROPOSED CLASSIFYING VEGETABLE OILS AND ANIMAL FATS AS HAZARDOUS MATERIALS FOR PURPOSES OF STORING AND SHIPPING IN BULK THE REASONING WAS THAT SPILLS COULD DAMAGE THE ENVIRONMENT BUT EDIBLEOILS MAKERS AND SHIPPERS GOT SIZZLING MAD AT THE MOVE TO LUMP THEIR PRODUCTS WITH PETROLEUM THIS WOULD HAVE HAD A TREMENDOUS IMPACT ON SMALL BUSINESS SAYS ROBERT VOLTMANN DIRECTOR OF POLICY DEVELOPMENT AT THE NATIONAL INDUSTRIAL TRANSPORTATION LEAGUE AS HAZARDOUS MATERIALS MUST BE SHIPPED SEPARATELY TRANSPORTATION COSTS WOULD HAVE RISEN FOR PRODUCERS AND RETAILERS OFTEN SMALL COMPANIES OF EVERYTHING FROM SALAD OIL TO BUTTERMILK ALBERT MOGERLEY PRESIDENT OF HUDSON TANK TERMINALS CORP SAYS THE RECLASSIFICATION WOULD HAVE COST HIS FAMILYOWNED NEWARK NJ COMMODITIESSTORAGE FIRM 6 MILLION FOR NEW ALARM SYSTEMS HIGHER INSURANCE PREMIUMS AND STAFF TRAINING RESPONDING TO BUSINESSES' OUTCRIES TRANSPORTATION SECRETARY FEDERICO PENA WITHDREW THE PROPOSAL LATE LAST MONTH IT'S COMMENDABLE THAT THEY DROPPED A BAD IDEA SAYS MR MOGERLEY POLITICIANS BREATHE LIFE INTO EXPIRING TAXES A TEMPORARY 17 TAX SURCHARGE ON BUSINESSES IN THE NEW YORK CITY METROPOLITAN AREA IS STILL GOING STRONG 10 YEARS AFTER IT WAS ENACTED THE STATE LEGISLATURE WHICH APPROVED THE SUPPOSEDLY STOPGAP MEASURE IN 1983 TO HELP FINANCE THE UPGRADING OF THE CITY'S MASSTRANSPORTATION SYSTEM HAS JUST EXTENDED IT FOR TWO MORE YEARS TEMPORARY' IN ALBANY THE STATE CAPITAL IS SPELLED WITH A CAPITAL P FOR PERMANENT SAYS BOB BELLAFIORE AN OFFICIAL AT THE BUSINESS COUNCIL OF NEW YORK STATE AN ADVOCACY GROUP MORE RECENT TEMPORARY TAX SURCHARGES IN BOTH NEW YORK AND ILLINOIS ALSO HAVE BEEN RENEWED BUT PERHAPS THE FEDERAL GOVERNMENT TAKES THE CAKE WITH A 3 EXCISE TAX ON LONGDISTANCE TELEPHONE SERVICES THAT WAS TEMPORARY FOR MORE THAN THREE DECADES FIRST ENACTED IN 1914 THE TAX WAS ALTERED NUMEROUS TIMES REPEALED TWICE AND CONTINUOUSLY SCHEDULED TO EXPIRE FROM 1959 UNTIL FINALLY BEING MADE PERMANENT IN 1990 ACCORDING TO AMERICAN TELEPHONE & TELEGRAPH CO LIKE SPRING IT ALWAYS SEEMED TO COME BACK SAYS AT&T SPOKESMAN MARK SIEGEL 9307060102 930706 US OFFICIALS FIRMS TO MEET IN TOKYO ON DEALING IN JAPAN DESPITE STRONG YEN BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO WHEN MEMBERS OF THE CLINTON ADMINISTRATION MEET WITH US CORPORATE EXECUTIVES IN TOKYO LATER THIS WEEK THEY'RE LIKELY TO HEAR A SIMPLE MESSAGE US COMPANIES SHOULD DO MORE BUSINESS IN JAPAN BUT THE YEN'S RECENT APPRECIATION IS MAKING THAT ALREADY DIFFICULT TASK HARDER FRIDAY MORNING EIGHT REPRESENTATIVES FROM US COMPANIES IN JAPAN WILL HAVE A CHANCE TO PRESS THEIR CASE IN A TWOHOUR PUBLIC FORUM WITH TREASURY SECRETARY LLOYD BENTSEN SECRETARY OF STATE WARREN CHRISTOPHER TRADE REPRESENTATIVE MICKEY KANTOR AND POSSIBLY PRESIDENT CLINTON ARRANGED BY THE AMERICAN CHAMBER OF COMMERCE IN JAPAN THE FORUM INTENDS TO SHOW THAT US COMPANIES CAN SUCCEED IN JAPAN AMERICAN COMPANIES NEED TO COME HERE BECAUSE JAPAN IS WHERE THE CUSTOMERS ARE SAID TIMOTHY LANGLEY GENERAL LEGAL COUNSEL FOR APPLE COMPUTER INC IN JAPAN IT'S A DIFFICULT MARKET BUT YOU CAN BE SUCCESSFUL IT TAKES PERSEVERANCE PATIENCE AND SOMETIMES A WILLINGNESS TO MODIFY YOUR PRODUCTS FOR THE LOCAL MARKET AND EVEN WHEN YOU DO THE RIGHT THINGS SOMETIMES YOU GET SLAMDUNKED ANYWAY THE FORUM ALSO GIVES US COMPANIES AN OPPORTUNITY TO RECOVER FROM THE MEMORY OF GEORGE BUSH'S ILLFATED VISIT TO JAPAN EARLY LAST YEAR AFTER WHICH MANY JAPANESE DERIDED THE US FOR PUSHING JAPAN TO BUY AMERICAN PRODUCTS THEY FELT WERE UNCOMPETITIVE SUCH AS AUTOMOBILES AND AUTO PARTS THE CHAMBER OF COMMERCE DIDN'T SAY WHICH COMPANIES WILL ATTEND THE FORUM INTERVIEWS OF OTHER AMERICAN BUSINESS OFFICIALS IN TOKYO SUGGEST THAT EXECUTIVES AT THE FORUM MAY TAKE A FEW POTSHOTS AT THE CLINTON ADMINISTRATION'S TRADE POLICY PARTICULARLY ITS STRATEGY OF TALKING UP THE YEN'S VALUE AGAINST THE DOLLAR THE YEN CLIMBED ROUGHLY 13 AGAINST THE DOLLAR SINCE MR BENTSEN AND MR CLINTON SAID THIS YEAR THAT A STRONGER YEN WOULD HELP CURB JAPAN'S RECORD TRADE SURPLUS A STRONGER YEN MAKES JAPANESE EXPORTS MORE EXPENSIVE IN DOLLAR TERMS AND IMPORTS TO JAPAN CHEAPER BUT THE STRONG YEN ALSO MAKES IT MORE EXPENSIVE FOR FOREIGN COMPANIES TO INVEST IN JAPAN NOTABLY THE ADMINISTRATION ALSO DENOUNCED THE LOW LEVEL OF FOREIGN INVESTMENT IN JAPAN I THINK THAT TO DO BUSINESS HERE YOU HAVE TO HAVE SOME PRESENCE HERE SAID NORMAN NEUREITER DIRECTOR OF TEXAS INSTRUMENTS INC IN JAPAN SINCE COMING TO JAPAN HE SAID HE'S WATCHED THE YEN RISE BY ALMOST A THIRD THAT'S A HUGE DIFFERENCE IN ONE'S COSTS PARTICULARLY IF YOU'RE ENTERING THE MARKET FOR THE FIRST TIME SOME EXECUTIVES ALSO ARGUE THAT US BUSINESSES NEED TO PURSUE MARKET OPPORTUNITIES IN JAPAN MORE AGGRESSIVELY IN MY VIEW THE AMERICAN BUSINESS COMMUNITY HERE IS WAY TOO SOFT AND TOO SERENE IN ITS ATTEMPTS TO GAIN MARKET SHARE IN JAPAN SAID JOEL SILVERSTEIN A VICE PRESIDENT OF KENTUCKY FRIED CHICKEN INTERNATIONAL IN TOKYO 9307060101 930706 GULF CANADA SALE TO CGGS CALGARY ALBERTA GULF CANADA RESOURCES LTD SAID IT COMPLETED THE SALE OF ITS REMAINING 38 STAKE IN AN ALBERTA GAS PLANT TO CGGS CANADIAN GAS GATHERING SYSTEMS INC FOR 375 MILLION CANADIAN DOLLARS US293 MILLION THE OIL AND GAS PRODUCER SAID THE SALE TO CLOSELY HELD CGGS AN INVESTMENT COMPANY MANAGED BY CALGARY OIL AND GAS PRODUCER MORRISON PETROLEUMS LTD RESULTED IN A C20 MILLION AFTERTAX GAIN MORRISON'S VICE PRESIDENT JAMES LOUGH SAID THE TRANSACTION PRICE INCLUDED THE COST OF BUYING GULF OUT OF A PROFITSHARING AGREEMENT WITH CGGS SIGNED LAST YEAR WHEN CGGS BOUGHT A 62 INTEREST IN THE GAS PLANT FROM GULF FOR C34 MILLION MORRISON TOOK OVER OPERATION OF THE PLANT IN FEBRUARY 9307060100 930706 INTERNATIONAL FRENCH CAR PRODUCTION DECLINED 48 IN MAY JUNE REGISTRATIONS FELL SPECIAL TO THE WALL STREET JOURNAL PARIS FRENCH PASSENGER CAR PRODUCTION DROPPED 48 TO 261268 VEHICLES IN MAY FROM THE SAME PERIOD A YEAR AGO THE FRENCH AUTOMAKERS' COMMITTEE SAID SINCE THE BEGINNING OF THE YEAR HOWEVER THE DROP WAS A STEEPER 12 TO 1321 MILLION CARS FROM THE SAME PERIOD IN 1992 EXPORTS DROPPED 48 AS WELL TO 172494 VEHICLES IN MAY COMPARED WITH A YEAR EARLIER FOREIGN PENETRATION OF THE FRENCH CAR MARKET WAS 397 IN MAY AND 39 FOR THE FIRST FIVE MONTHS OF THE YEAR SEPARATELY PRELIMINARY DATA BY THE FRENCH ASSOCIATION OF AUTOMOBILE MANUFACTURERS SHOW AUTO REGISTRATIONS IN FRANCE FELL 14 IN JUNE TO 121100 UNITS FROM 140561 IN JUNE 1992 AUTO REGISTRATIONS IN THE FIRST HALF NOW STAND AT 813400 DOWN 18 FROM 991108 IN THE FIRST HALF OF 1992 THE ASSOCIATION NOTED THAT JUNE REGISTRATIONS OF FRENCHMADE VEHICLES FELL ONLY 7 WHILE FOREIGNMADE REGISTRATIONS DROPPED 25 JUNE REGISTRATIONS OF CARS PRODUCED BY RENAULT SA WERE DOWN 92 FROM THE YEAREARLIER MONTH TO 37300 WHILE REGISTRATIONS FOR CARS MADE BY PSA PEUGEOT CITROEN SA SLIPPED 51 TO 42000 9307060099 930706 WHO'S NEWS WOLCOTT NAMED CEO PRESIDENT OF TRAMMELL CROW REAL ESTATE TRUST DALLAS TRAMMELL CROW REAL ESTATE INVESTORS WHICH IS PLANNING TO CHANGE ITS NAME TO AMERICAN INDUSTRIAL PROPERTIES REAL ESTATE INVESTMENT TRUST SAID CHARLES W WOLCOTT 40 YEARS OLD HAD BEEN NAMED TO THE NEWLY CREATED POSITION OF PRESIDENT AND CHIEF EXECUTIVE OFFICER IN APRIL THE REAL ESTATE INVESTMENT TRUST ANNOUNCED THAT IT PLANNED TO TERMINATE ITS TRUST ADVISORY AGREEMENT WITH TRAMMELL CROW VENTURES LTD AND INTERNALIZE MANAGEMENT ALTHOUGH HE WAS NOT GIVEN A TITLE AT THE TIME MR WOLCOTT WAS HIRED THEN TO ASSIST TRUST MANAGERS IN MAKING THE CHANGE HE'S A FORMER VICE PRESIDENT CHIEF FINANCIAL OFFICER AND CHIEF OPERATING OFFICER OF THE TRUST IN HIS NEW POST MR WOLCOTT WILL ASSUME THE DUTIES FORMERLY PERFORMED BY PHILIP W NORWOOD 40 YEARS OLD WHO RESIGNED AS ONE OF THE REAL ESTATE INVESTMENT TRUST'S THREE TRUST MANAGERS WHEN THE CONCERN ANNOUNCED ITS PROPOSED MANAGEMENT CHANGES IN APRIL THE TRUST'S SHAREHOLDERS ARE EXPECTED TO VOTE ON THE PROPOSED NAME CHANGE AT A HOLDERS MEETING SCHEDULED FOR AUG 10 9307060098 930706 INTERNATIONAL ARGENTINA'S TRADE GAP TOTALED 6215 MILLION DURING THE FIRST PERIOD SPECIAL TO THE WALL STREET JOURNAL BUENOS AIRES ARGENTINA RECORDED A TRADE DEFICIT OF 6215 MILLION DURING THE FIRST QUARTER OF 1993 THE ECONOMY MINISTRY SAID FRIDAY EXPORTS TOTALING 375 BILLION WERE TOPPED BY IMPORTS TOTALING 438 BILLION SAID THE MINISTRY'S NATIONAL STATISTICS AND CENSUS INSTITUTE IN ITS QUARTERLY REPORT THE FIRSTQUARTER DEFICIT WAS 211 WIDER THAN THE DEFICIT RECORDED DURING THE FIRST QUARTER OF 1992 THE INSTITUTE SAID THE INSTITUTE ALSO REPORTED A DEFICIT OF 146 MILLION IN TRADE WITH NEIGHBORING BRAZIL PARAGUAY AND URUGUAY THE FOUR COUNTRIES CURRENTLY ARE NEGOTIATING FORMATION OF THE SOUTHERN CONE COMMON MARKET OR MERCOSUR SCHEDULED TO TAKE EFFECT ON JAN 1 1995 THE DEFICIT WITH FELLOW MERCOSUR COUNTRIES WAS A SHARP IMPROVEMENT OVER A DEFICIT OF 4477 MILLION RECORDED DURING THE SAME PERIOD A YEAR AGO QUARTERLY FIGURES SHOWED INCREASES IN IMPORTS OF PASSENGER VEHICLES CAPITAL GOODS AND CONSUMER PRODUCTS EXPORT DATA SHOWED A RISE IN EXPORTS OF FUELS AND MANUFACTURED INDUSTRIAL GOODS 9307060097 930706 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT LEVITZ FURNITURE INC 100 MILLION OF SENIOR SUBORDINATED NOTES DUE JULY 15 2003 PRICED AT PAR TO YIELD 9525 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR FIVE YEARS RATED SINGLEB2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES 1566 IS BACKED BY THE AGENCY'S SEVENYEAR 6 BALLOON MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 66 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 68 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 1 BILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1993134 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 725 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 148 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 600 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1993136 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7625 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 298 YEARS ALTANA FINANCE BV NETHERLANDS GERMAN PARENT 100 MILLION MARKS OF 7125 EUROBONDS DUE AUG 3 2000 AT ISSUE PRICE 1015 VIA DRESDNER BANK AG BONDS YIELD 724 ANNUAL A SPREAD OF ABOUT 55 BASIS POINTS ABOVE COMPARABLE GERMAN BUND GUARANTOR ALTANA AG FEES 275 FOR LEAD MANAGERS 2125 FOR COMANAGERS BANK NEDERLANDSE GEMEENTEN DUTCH AGENCY 200 MILLION CANADIAN DOLLARS OF 7375 EUROBONDS DUE AUG 2 2000 AT ISSUE PRICE 100965 VIA GOLDMAN SACHS INTERNATIONAL LTD REOFFERED AT 9939 TO YIELD 749 ANNUAL A SPREAD OF 425 BASIS POINTS ABOVE INTERPOLATED CURVE BETWEEN FIVEAND 10YEAR CANADIAN GOVERNMENT BONDS FEES 1875 POINTS CREDIT LOCAL DE FRANCE FRENCH AGENCY 500 MILLION FRENCH FRANCS OF 7 EUROBONDS DUE MAY 12 2003 AT ISSUE AND REOFFER PRICE 100238 VIA CREDIT COMMERCIAL DE FRANCE BONDS WILL TRADE INTERCHANGEABLY WITH TWO BILLION FRANCS OF OUTSTANDING IDENTICAL BONDS BONDS YIELD 696 ANNUAL A SPREAD OF 20 BASIS POINTS ABOVE 675 FRENCH TREASURY NOTE DUE 2003 ALL OTHER TERMS UNCHANGED FEES 0325 POINT EUROPEAN BANK FOR RECONSTRUCTION & DEVELOPMENT SUPRANATIONAL 200 BILLION ITALIAN LIRE OF 975 EUROBONDS DUE JULY 28 2000 AT ISSUE PRICE 10145 VIA BANCA DI ROMA REOFFERED AT PAR TO YIELD 975 ANNUAL FEES 175 POINTS EUROPEAN INVESTMENT BANK SUPRANATIONAL 500 BILLION ITALIAN LIRE OF FLOATINGRATE EURONOTES DUE JULY 15 1997 AT ISSUE PRICE 100375 VIA BANCA COMMERCIALE ITALIANA CREDITO ITALIANO AND ISTITUTO BANCARIO SAN PAOLO DI TORINO INTEREST PAYABLE QUARTERLY AT THREEMONTH LONDON INTERBANK OFFERED RATE FOR LIRE LESS 025 POINT CALLABLE AT PAR FROM JULY 1996 PAYMENT DATE FEES 02 POINT LYNX LTD SPECIALPURPOSE VEHICLE 100 MILLION MARKS OF NONINTERESTPAYING EUROBONDS DUE AUG 11 2003 AT ISSUE PRICE PAR VIA TRINKAUS & BURKHARDT KGAA AT MATURITY BONDHOLDERS REPAID AT PAR FROM MONEY INVESTED IN 100 MILLION MARKS OF TRINKAUS & BURKHARDT ZEROCOUPON NOTES DUE AUG 11 2003 ABOUT 50 OF LYNX BONDS SECURED AGAINST TRINKAUS BONDS WHICH NOW TRADE AROUND 50 ADDITIONAL PAYMENT FROM OTHER HALF OF PROCEEDS FROM LYNX BONDS WHICH ARE SECURED AGAINST LYNX'S FOREIGNEXCHANGE TRANSACTIONS FEES UNDISCLOSED MARUBENI INTERNATIONAL FINANCE PLC JAPANESE PARENT 10 BILLION YEN OF 425 EUROBONDS DUE NOV 1 1996 AT ISSUE PRICE 101275 VIA SAKURA FINANCE INTERNATIONAL LTD REOFFERED AT 10015 TO YIELD 42 ANNUAL KEEPWELL AGREEMENT WITH MARUBENI CORP FEES 1375 POINTS OSTERREICHISCHE KONTROLLBANK AG AUSTRIAN AGENCY 250 BILLION ITALIAN LIRE OF 95 EUROBONDS DUE AUG 4 2003 AT ISSUE PRICE 101625 VIA PARIBAS CAPITAL MARKETS LTD BONDS YIELD 956 ANNUAL AT BREAKEVEN PRICE FOR COMANAGERS GUARANTOR REPUBLIC OF AUSTRIA FEES TWO POINTS SEINO TRANSPORTATION CO JAPAN 480 MILLION OF 1375 EUROBONDS WITH EQUITYWARRANTS ATTACHED DUE JULY 22 1997 AT ISSUE PRICE PAR VIA NOMURA INTERNATIONAL PLC FEES 225 FOR LEAD MANAGERS 21 FOR COMANAGERS EACH 10000 BOND PLUS TWO WARRANTS CAN BE USED TO PURCHASE SHARES IN COMPANY AT INDICATED PREMIUM OF 25 YESTERDAY'S CLOSING SHARE PRICE WAS 1800 YEN EXERCISE PERIOD OF WARRANTS WILL RUN FROM AUG 5 1993 TO JULY 15 1997 TERMS FIXED JULY 12 SWEDISH EXPORT CREDIT CORP SWEDISH AGENCY 15 BILLION SWEDISH KRONOR OF 75 EUROBONDS DUE AUG 20 1998 AT ISSUE PRICE 100195 VIA MORGAN STANLEY INTERNATIONAL REOFFERED AT 9857 TO YIELD 786 ANNUAL FEES 1875 POINTS 9307060096 930706 REVIEW & OUTLOOK EDITORIAL THE CLASSWARFARE ECONOMY TREASURY SIGNS UP THE CLINTON PLAN BARELY SQUEAKED THROUGH THE SENATE AND NO WONDER FOLKS THERE WERE BEGINNING TO FOCUS ON THE WAY THE NEW PERSONAL TAX RATES WILL CREAM SMALL BUSINESS SOME 80 OF COMPANIES AREN'T CORPORATIONS BUT REPORT THEIR EARNINGS ON SOMEBODY'S 1040 FORM NOT TO WORRY SAYS SAM SESSIONS DEPUTY ASSISTANT SECRETARY FOR TAX POLICY AT THE CLINTON TREASURY AND FORMERLY CHIEF TAX COUNSEL FOR LLOYD BENTSEN'S SENATE FINANCE COMMITTEE HE HAS DATA SHOWING THAT ONLY 4 OF SMALL BUSINESS A MERE 300000 TAXPAYERS WILL END UP PAYING HIGHER TAXES TO GET TO THESE NUMBERS MR SESSIONS RESORTS TO SOME HEAVY STATISTICAL TORTURE OF THE SORT FAMILIAR FROM LAST YEAR'S THE POOR GOT POORER DEBATE IT LOOKS AS IF TREASURY HAS ENLISTED IN THE WHITE HOUSE'S CLASS WAR ALEXANDER HAMILTON MUST BE ROLLING IN HIS GRAVE STEP ONE IS TO REDEFINE SMALL BUSINESS MR SESSIONS REFUSES TO COUNT ANYBODY WHO GETS MORE THAN HALF HIS INCOME AS WAGE OR SALARY WHICH EFFECTIVELY WHITTLES THE BUSINESSOWNING POPULATION DOWN FROM 21 MILLION TO 7 MILLION WHAT ABOUT THE 14 MILLION WHO END UP ON THE CUTTING ROOM FLOOR ACCORDING TO A TREASURY HANDOUT THESE ARE REALLY TAX SHELTER INVESTORS FOR EXAMPLE OUCH ONCE TREASURY HAS READ THESE RASCALS OUT OF THE ENTREPRENEURIAL RANKS IT SCRAPES UP JUST 300000 SURVIVORS WHO IT SAYS WOULD ACTUALLY PAY HIGHER TAXES AND MANY OF THESE ARE INVESTMENT BANKERS LAWYERS DOCTORS AND LOBBYISTS CLAIMS TREASURY THE POINT OF STRINGING UP LAWYERS AND TAX SHELTER INVESTORS IN EFFIGY AROUND THE TREASURY IS THAT IT'S SUPPOSED TO MAKE NEW TAXES ON SMALL BUSINESS AN EASIER SELL TO CONGRESS AND THE MEDIA BUT THESE ARE HEAVYHANDED STEREOTYPES AND FLOGGING THEM DOESN'T CONTRIBUTE ANYTHING TO MR CLINTON'S PROMISE OF GOOD JOBS AT GOOD WAGES FOR INSTANCE MANY BUSINESS OWNERS PAY THEMSELVES A SALARY OR HOLD DOWN DAY JOBS WHILE TENDING THEIR BUSINESS AT NIGHT AND ON WEEKENDS THESE PEOPLE WOULD BE INSULTED TO HEAR THEMSELVES CALLED TAX SHELTER INVESTORS FOR THAT MATTER WE DON'T SEE THE LOGIC IN EXCLUDING PASSIVE BUSINESS OWNERS ANYWAY THEIR WILLINGNESS TO INVEST AND CREATE JOBS IS NO LESS AFFECTED BY HIGHER TAXES SO LET'S ROLL THE 14 MILLION UNTOUCHABLES BACK INTO THE DATABASE IT TURNS OUT THAT ROUGHLY 900000 SMALL BUSINESSES WOULD FACE THE CLINTON TAXES RIGHT AWAY NOT THE 300000 CITED BY MR SESSIONS BUT NEITHER ESTIMATE IS ANYTHING TO SNEEZE AT THE COUNTRY HAS 21 MILLION SMALL BUSINESSES BUT ONLY 5 MILLION PROVIDE JOBS FOR ANYBODY BUT THEIR OWNERS NATURALLY THE MOST PROFITABLE DO THE MOST HIRING BUT NOW THEY'LL BE USING THEIR MONEY TO PAY TAXES INSTEAD MR CLINTON IS STILL CAPABLE OF SAYING THE RIGHT THINGS ABOUT ENTREPRENEURSHIP AND JOB CREATION AS HE DID LAST TUESDAY IN A SPEECH BEFORE THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS BUT HIS IDEA OF A SMALL BUSINESS SEEMS TO BE APPLE COMPUTER HE AND HIS FELLOW RHODIES HAVE A SERIOUS BLIND SPOT WHEN IT COMES TO UNDERSTANDING WHAT'S GOING ON IN THE ENTREPRENEURIAL UNDERBRUSH AT HIS NFIB SPEECH A QUESTION FROM THE FLOOR WAS WHAT COMPROMISES IN YOUR SOCIAL AGENDA ARE YOU WILLING TO MAKE TO REDUCE THE BURDEN OF GOVERNMENT MR CLINTON SIMPLY DENIED THE PREMISE HE ARGUED THAT JAPAN HAS THE LOWEST UNEMPLOYMENT RATE OF ALL THE WEALTHY COUNTRIES AND SOMEHOW THIS MUST BE CONNECTED TO THE FACT THAT MITI IS HIPDEEP IN BUSINESS MATTERS MR CLINTON IS RIGHT TO FIND THE JAPANESE CASE INTERESTING BUT HE MISSES THE KEY POINT MOST OF THE HIRING ISN'T DONE BY TOYOTA OR SONY BUT BY AN INCREDIBLY DYNAMIC SMALL BUSINESS SECTOR AN ASTOUNDING ONETHIRD OF THE JAPANESE LABOR FORCE IS SELFEMPLOYED OR WORKING UNPAID IN A FAMILY BUSINESS COMPARED WITH 10 IN THE US THESE LITTLE COMPANIES THRIVE PRECISELY BECAUSE THEY AREN'T WEIGHED DOWN WITH PAPERWORK FAMILY LEAVE OR OTHER FORMS OF PARTNERSHIP WITH TOKYO'S BUREAUCRATS THE CLINTONITES GOGGLE AT TOYOTA'S LIFETIME EMPLOYMENT POLICY AND PROBABLY FIGURE THIS EXPLAINS JAPAN'S LOW UNEMPLOYMENT RATE THEY FORGET THAT TOYOTA FARMS OUT 70 OF ITS WORK TO SMALL SUBCONTRACTORS WHO DON'T HESITATE TO SWING THE AX FORTUNATELY THERE'S ALWAYS ANOTHER SMALL BUSINESS AROUND THE CORNER WITH A JOB SIGN IN THE WINDOW MR CLINTON WOULD SADDLE THE NATION'S 21 MILLION SOLE PROPRIETORSHIPS PARTNERSHIPS AND S CORPORATIONS WITH AN EFFECTIVE TOP MARGINAL TAX RATE OF ALMOST 45 AND IF THEY SURVIVE THIS NEXT ALONG IS AN AVALANCHE OF MANDATES FOR EVERYTHING FROM HEALTH CARE TO FAMILY LEAVE TO DIVERSITY QUOTAS EVEN IN A GRUMPY MOOD AMERICANS DON'T REALLY CONSIDER MAKING A FINANCIAL SUCCESS OF YOURSELF EVIDENCE OF BAD CHARACTER NO AMOUNT OF CLASSWARFARE RHETORIC FROM THE TREASURY CAN TURN THIS WITCH'S BREW OF TAXES AND MANDATES INTO ANYTHING BUT POISON FOR THE ECONOMY 9307060095 930706 FOREIGN EXCHANGE DOLLARYEN VOLATILITY IS WELCOME NEWS TO SOME INTERNATIONAL FUND MANAGERS BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK WHILE CURRENCY DEALERS SCRAMBLE TO KEEP UP WITH THE DOLLAR'S GYRATIONS AGAINST THE YEN SOME INTERNATIONAL FUND MANAGERS WELCOME THE VOLATILITY AND WITH THIS WEEK'S MEETING OF THE GROUP OF SEVEN INDUSTRIAL NATIONS AND THE JAPANESE ELECTIONS LATER THIS MONTH THEY EXPECT THE WIDE SWINGS IN DOLLARYEN RATES TO CONTINUE THOSE WHO BELIEVE THAT THE YEN WILL STAY STRONG CONSIDER EACH DOWNTICK IN THAT CURRENCY A CHANCE TO BOOST THEIR JAPANESE HOLDINGS WHILE DOLLAR BULLS LOOK TO PROFIT FROM CURRENCY HEDGING CURRENCY TRADING WAS SLOWED YESTERDAY BY THE INDEPENDENCE DAY HOLIDAY IN THE US THE DOLLAR WAS QUOTED AT 109 YEN IN LATE LONDON TRADING UP FROM 10858 YEN IN NEW YORK LATE FRIDAY IT TRADED AT 16975 MARKS UP FROM 16965 MARKS IN NEW YORK ON FRIDAY IN TOKYO EARLY TUESDAY THE DOLLAR WAS TRADING AT 10918 YEN AND AT 16992 MARKS THROUGHOUT LAST WEEK TRADERS WATCHED THE DOLLAR CLIMB AND FALL RAPIDLY CATCHING MANY MARKET PLAYERS BETTING THE WRONG WAY SOME BROKERS WARNED THEIR CUSTOMERS AWAY FROM YEN TRADING AND CORPORATIONS WERE SAID TO HAVE MOVED TO THE SIDELINES PRICES OF YEN OPTIONS WHICH MARKET PLAYERS USE TO HEDGE THEIR CURRENCY RISK SOARED FOR SOME MANAGERS THOUGH IT WAS A PLEASANT SIGHT WE TEND TO LIKE THIS SORT OF VOLATILITY SAYS THOMAS BERGER DIRECTOR OF FIXEDINCOME INVESTMENT AT LOMBARD ODIER INVESTMENT MANAGEMENT SERVICES LTD IN LONDON WE USE OPPORTUNITIES LIKE THAT TO PUT ON EXTRA YEN EXPOSURE GIVEN OUR LONGTERM OUTLOOK MR BERGER EXPECTS THE DOLLAR TO SINK BELOW 100 YEN BY THE END OF THE YEAR A FUNCTION OF JAPAN'S MASSIVE TRADE AND CURRENT ACCOUNT SURPLUSES I DON'T SEE THE SURPLUSES CHANGING FOR A WHILE JUST BECAUSE THE JAPANESE ECONOMY IS TOO WEAK HE SAYS THE CURRENT ACCOUNT IS A BROAD MEASURE OF A COUNTRY'S TRADE IN GOODS AND SERVICES JAPANESE BONDS ACCOUNT FOR 10 TO 15 OF MR BERGER'S GLOBAL PORTFOLIOS THE YEN'S DIPS ARE ALSO A BONUS FOR FUNDS THAT FOCUS ON BUYING JAPANESE STOCKS WHEN PRICES SOFTEN MY STRATEGY IS TO BUILD UP EXPOSURE SLOWLY IN ANY PERIOD OF STOCK MARKET WEAKNESS SAYS GEOFF HO MANAGER OF THE FREEDOM PACIFIC BASIN FUND FOR JOHN HANCOCK ADVISERS INTERNATIONAL IN LONDON I WOULD HOPE TO DO THAT IN PERIODS WHEN THE YEN IS WEAKER RATHER THAN STRONGER MR HO WHO EXPECTS THE DOLLAR TO SPEND MOST OF THE REMAINDER OF 1993 BETWEEN 105 AND 110 YEN STAYS AWAY FROM CURRENCYSENSITIVE JAPANESE COMPANIES LIKE EXPORTERS THAT MEANS IT'S ONLY A HAPPY COINCIDENCE IF THE YEN FALLS WHEN HE'S READY TO INCREASE HIS HOLDINGS BUT FOR OTHER MANAGERS THE YEN'S RAPID MOVES REQUIRE SOME ASSET SHIFTING AROUND THE BEGINNING OF JUNE WE MADE SOME SHIFTS IN OUR PORTFOLIO BECAUSE WE FELT THAT BANKS AND FINANCIAL STOCKS HAD RUN A BIT TOO FAR AND THE YEN AT LEAST IN THE SHORT TERM HAD HIT A PEAK SAYS TIM GRIFFEN PACIFIC BASIN SPECIALIST FOR TNE INTERNATIONAL EQUITY FUND JAPANESE BANKS TEND TO BENEFIT FROM A STRONG YEN MR GRIFFEN NOTES BECAUSE IT REDUCES THE THREAT OF INFLATION AND HELPS PULL INTEREST RATES LOWER EXPECTING THE YEN TO GIVE UP SOME OF ITS GAINS MR GRIFFEN SHIFTED SOME OF HIS HOLDINGS TO EXPORT COMPANIES IT WOULD TAKE A MORE SUSTAINABLE MOVE TO 110 TO 115 YEN BEFORE YOU'D SEE A SIGNIFICANT RALLY IN SOME OF THESE STOCKS HE SAYS THEN WE WOULD LOOK AT IT AGAIN 9307060093 930706 BUSINESS BRIEF TRANSCO ENERGY CO CONCERN TO SELL SUBSIDIARY TO UNIT OF NATIONAL POWER TRANSCO ENERGY CO SAID IT SIGNED A DEFINITIVE AGREEMENT TO SELL ITS TRANSCO ENERGY VENTURES CO SUBSIDIARY TO NATIONAL POWER AMERICA INC A SUBSIDIARY OF LONDONBASED NATIONAL POWER PLC FOR 160 MILLION HOUSTONBASED TRANSCO SAID IT EXPECTS TO RECORD A GAIN ON THE SALE OF APPROXIMATELY 50 MILLION BEFORE TAXES 32 MILLION AFTER TAXES OR 81 CENTS A SHARE AT THE CLOSING LATER THIS YEAR THE CLOSING OF THE SALE IS SUBJECT TO CERTAIN CONDITIONS TRANSCO ENERGY VENTURES DEVELOPS AND OPERATES COGENERATION AND INDEPENDENT POWER PLANTS AND PROVIDES NATURALGAS VEHICLE FUELING SERVICES IT ALSO PROVIDES ENERGY CONSULTING SERVICES NATIONAL POWER HAS WANTED FOR SOME TIME TO EXPAND ITS ROLE IN POWER GENERATION INTERNATIONALLY 9307060092 930706 QUARTERLY MUTUAL FUNDS REVIEW HIGHER MONEY FUND YIELDS STAY FAR OFF BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL HIGHER MONEY FUND YIELDS ARE OUT THERE ON THE HORIZON SOMEWHERE BUT STILL PRETTY FAR OFF IT'S TAKEN LONGER THAN MOST PEOPLE EXPECTED FOR SHORTTERM INTEREST RATES TO START RISING SAYS JAY MUELLER MANAGER OF STRONG MONEY MARKET FUND IT ALWAYS SEEMS TO BE A QUARTER AWAY YIELDS ON TAXABLE MONEY MARKET MUTUAL FUNDS DROPPED TO THEIR LOWEST POINT EVER IN THE SECOND QUARTER AN AVERAGE 254 FOR FUNDS OPEN TO INDIVIDUAL INVESTORS DOWN FROM 266 IN THE FIRST QUARTER AND NEARLY A FULL PERCENTAGE POINT LOWER THAN 348 A YEAR AGO THE FIVE LOWESTYIELDING FUNDS IN THE LATEST QUARTER EARNED LESS THAN 2 ON AN ANNUALIZED BASIS ACCORDING TO CALCULATIONS BY MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER THE TOP PERFORMER POSTED A YIELD OF JUST 340 WELCOME TO THE GULAG OF THE INVESTMENT WORLD SAYS IAN MACKINNON SENIOR VICE PRESIDENT OF VANGUARD GROUP THE OUTLOOK IS STILL PRETTY GRIM EVEN AFTER FOUR YEARS OF STEADILY DECLINING YIELDS FRIDAY'S NEWS OF A 7 UNEMPLOYMENT RATE IN JUNE AND ONLY A TINY INCREASE IN NONFARM PAYROLLS MAKES IT UNLIKELY THAT THE FEDERAL RESERVE WILL PUSH UP SHORTTERM INTEREST RATES SOON THERE'S NOTHING TO COMPEL THE FED TO TIGHTEN UNTIL THE ECONOMY STARTS MOVING AT SOMETHING FASTER THAN A CRAWL SAYS MR MACKINNON PORTFOLIO MANAGERS GENERALLY DON'T EXPECT MORE THAN A QUARTER OF A PERCENTAGE POINT RISE IN SHORTTERM INTEREST RATES OVER THE NEXT THREE TO FOUR MONTHS WHICH MEANS THAT MONEY FUND YIELDS WILL REMAIN RELATIVELY UNCHANGED THERE'S A LONG FLAT PRAIRIE OUT THERE BEFORE WE GET TO THE MOUNTAIN SAYS WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT INDEED TAXABLE MONEY FUNDS ENDED THE QUARTER WITH AN AVERAGE MATURITY OF 60 DAYS THE SAME AS THREE MONTHS AGO THAT'S FAIRLY LONG FOR MONEY FUNDS WHICH ARE LIMITED BY SECURITIES AND EXCHANGE COMMISSION REGULATIONS TO A MAXIMUM AVERAGE MATURITY OF 90 DAYS THE AVERAGE WENT AS HIGH AS 64 DAYS DURING THE QUARTER CLOSE TO THE HIGH OF 66 DAYS DURING THE FIRST QUARTER LONGER MATURITIES USUALLY ARE CONSIDERED A SIGN THAT INTEREST RATES ARE STABLE OR DECLINING WHEN RATES ARE RISING PORTFOLIO MANAGERS SHORTEN MATURITIES TO TAKE ADVANTAGE OF HIGHER RATES SOONER THE YIELD ADVANTAGE OF TAXFREE MONEY FUNDS DISAPPEARED DURING THE SECOND QUARTER TAXEXEMPT FUNDS ENDED THE QUARTER WITH AN AVERAGE SEVENDAY COMPOUND YIELD OF 184 ACCORDING TO MONEY FUND REPORT EQUIVALENT TO A TAXABLE 267 FOR INVESTORS IN THE 31 TAX BRACKET THAT'S EXACTLY THE AVERAGE YIELD ON ALL TAXABLE MONEY FUNDS INCLUDING THOSE OPEN TO INSTITUTIONS FOR THE WEEK ENDED JUNE 29 COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS AT THE END OF THE FIRST QUARTER THE AVERAGE YIELD ON TAXFREE FUNDS WAS 202 OR THE EQUIVALENT OF A TAXABLE 293 FOR AN INVESTOR IN THE 31 TAX BRACKET COMPARED WITH 270 FOR ALL TAXABLE FUNDS AT THE END OF 1992 TAXFREE FUNDS WERE AVERAGING 274 EQUIVALENT TO 397 FOR SOMEONE IN THE 31 BRACKET FOR ALL TAXABLE FUNDS THE YIELD WAS 290 MONEY FUND INVESTORS LOOKING FOR HIGHERYIELDING ALTERNATIVES ARE MOVING INTO SHORTTERM AND INTERMEDIATETERM BOND FUNDS AND STOCKS PORTFOLIO MANAGERS SAY THE INVESTMENT COMPANY INSTITUTE THE MUTUAL FUND TRADE GROUP REPORTED LAST WEEK THAT INVESTORS ADDED 101 BILLION TO BOND FUNDS AND 91 BILLION TO STOCK FUNDS IN MAY ALONE ASSETS OF MONEY FUNDS OPEN TO INDIVIDUAL INVESTORS FELL ABOUT 85 BILLION DURING THE SECOND QUARTER TO 30514 BILLION ACCORDING TO MONEY FUND REPORT AT THE END OF LAST YEAR THE TOTAL WAS 3093 BILLION ASSETS OF THE 10LARGEST FUNDS WHICH WERE THE SAME IN BOTH QUARTERS DECLINED DESPITE THE OVERALL OUTFLOW HOWEVER THE FIVE TOPYIELDING FUNDS IN THE SECOND QUARTER REPORTED INCREASES IN ASSETS DREYFUS BASIC MONEY MARKET FUND FOR EXAMPLE THE HIGHESTYIELDING IN THE LATEST PERIOD AND NO 4 IN THE FIRST QUARTER GREW NEARLY 20 TO NEARLY 1 BILLION FUND MANAGERS SAY SOME OF THE HUGE PILE OF CASH STILL IN MONEY FUNDS IS COMING OUT OF BANK DEPOSITS WHICH FOR THE MOST PART ARE YIELDING EVEN LESS BANK MONEY MARKET ACCOUNTS FOR INSTANCE ARE YIELDING AN AVERAGE OF 235 ACCORDING TO BANXQUOTE MONEY MARKETS WHILE THE AVERAGE ON THREEMONTH CERTIFICATES OF DEPOSIT IS 247 MOST MONEY FUND INVESTORS WOULD DO SOMEWHAT BETTER WITH TREASURY BILLS WHICH WERE SOLD AT LAST WEEK'S AUCTION WITH YIELDS OF 312 FOR THREE MONTHS AND 323 FOR SIX MONTHS THEY'RE A PARTICULARLY GOOD DEAL FOR INVESTORS IN HIGHTAX STATES BECAUSE INCOME FROM TREASURY SECURITIES IS EXEMPT FROM STATE AND LOCAL TAX ALTHOUGH THEY DON'T OFFER THE COMPLETE LIQUIDITY AND CONVENIENCE OF MONEY FUNDS SHORTTERM BOND FUNDS WERE YIELDING ABOUT 45 AT THE END OF MAY ACCORDING TO LIPPER ANALYTICAL SERVICES HOWEVER EVEN SHORTTERM BONDS WOULD LOSE VALUE IF INTEREST RATES TURN UP THUS DIMINISHING THE RETURN TO INVESTORS IF PEOPLE CAN'T TOLERATE PRICE FLUCTUATION IT'S NOT SOMETHING THEY SHOULD DO SAYS HEIDI BAXTER A VICE PRESIDENT AT FIDELITY INVESTMENTS UNLIKE STOCK AND BOND FUNDS WHOSE NET ASSET VALUE FLUCTUATES WITH MARKET VARIATIONS MONEY FUNDS ARE STRUCTURED SO THEIR NET ASSET VALUE REMAINS AT 1 A SHARE AND ONLY THE YIELD CHANGES THEY ARE CONSIDERED AMONG THE SAFEST INVESTMENTS SOME ADVENTURESOME INVESTORS ARE MOVING INTO LONGTERM BONDS AND STOCKS FUND OFFICIALS SAY JAMES MCDONALD A VICE PRESIDENT AT T ROWE PRICE ASSOCIATES SAYS ABOUT TWOTHIRDS OF THE NEW MONEY COMING INTO THE FUND FAMILY THESE DAYS IS GOING INTO STOCKS AND ABOUT HALF OF THAT GOES INTO FOREIGN STOCKS CASH GOING INTO FIXEDINCOME INVESTMENTS IS GOING INTO HIGHYIELDING FUNDS HE ADDS STILL THERE WAS A TOTAL OF 56819 BILLION IN 921 MONEY MARKET MUTUAL FUNDS AT THE END OF THE SECOND QUARTER COMPARED WITH 57232 BILLION IN 889 FUNDS AT THE END OF THE FIRST QUARTER THE LATEST PERIOD'S TOTAL INCLUDES 1824 BILLION IN INSTITUTIONAL MONEY BUT THE REMAINDER BELONGS TO INDIVIDUAL INVESTORS WHO LIKE THE CONVENIENCE OF MONEY FUNDS HAVEN'T FIGURED OUT WHAT ELSE TO DO OR HAVEN'T GOTTEN AROUND TO DOING SOMETHING ELSE IT'S CONVENIENCE AND INERTIA SAYS MR FRANK OF MONEY FUND REPORT PEOPLE AREN'T TAKING THEIR MONEY OUT BECAUSE THEY DON'T KNOW WHAT ELSE TO DO WITH IT MOST MONEY FUND INVESTORS ALSO OWN OTHER MUTUAL FUND SHARES OFTEN IN THE SAME FUND FAMILY VANGUARD FOR INSTANCE SAYS THAT ABOUT TWOTHIRDS OF THE INVESTORS IN ITS 1238 BILLION MONEYMARKET RESERVE PRIME PORTFOLIO ALSO OWN OTHER VANGUARD FUNDS THEY USUALLY CAN MOVE FROM ONE FUND TO ANOTHER WITH A TELEPHONE CALL MONEY FUNDS ALSO TYPICALLY OFFER CHECK WRITING WHILE THERE'S USUALLY A PERCHECK MINIMUM OFTEN 500 FOR SOME PEOPLE THEY CAN SUBSTITUTE FOR A BANK CHECKING ACCOUNT THEY'RE GOOD PLACES TO KEEP THE THREETOSIX MONTHS OF EXPENSES THAT MOST FINANCIAL PLANNERS RECOMMEND AS AN EMERGENCY FUND OR THE CASH TO PAY FOR MAJOR PURCHASES IN THE NEXT MONTH OR TWO THE TOPYIELDING TAXABLE FUNDS ARE YIELDING MORE THAN 3 ALTHOUGH ALL OF THE TOP 10 FUNDS FOR THE QUARTER ARE WAIVING ALL OR PART OF THEIR MANAGEMENT FEES TO BOOST YIELDS WHEN THOSE WAIVERS END IF INTEREST RATES HAVEN'T RISEN THOSE YIELDS ARE LIKELY TO FALL THE TOP PERFORMERS FOR THE QUARTER INCLUDE TWO NEW FUNDS PACIFIC HORIZON PRIME VALUE FUND WHICH BEGAN OPERATIONS IN MARCH AND TINY JACKSON NATIONAL MONEY MARKET FUND WITH 32 MILLION IN ASSETS WHICH BEGAN OPERATIONS IN NOVEMBER AND STARTED REPORTING TO MONEY FUND REPORT IN MARCH A LOOK AT CONSUMERORIENTED MONEY FUNDS AND SOME OF THEIR HOLDINGS AT THE END OF THE SECOND QUARTER PERFORMANCE FIGURES ARE ESTIMATED ANNUALIZED YIELDS WHICH INCLUDE EARNINGS FROM THE FUNDS INVESTMENTS AND THE EFFECTS OF COMPOUNDING FUNDS OPEN ONLY TO INSTITUTIONS SPECIAL PURPOSE FUNDS AND TAXEXEMPT FUNDS ARE EXCLUDED FROM THESE TABLES 9307060090 930706 BRITISH HOUSE PRICES RISE LONDON BRITISH HOUSE PRICES ROSE 16 IN JUNE FROM MAY BUT WERE DOWN 35 FROM A YEAR EARLIER ACCORDING TO A SURVEY BY THE NATIONWIDE BUILDING SOCIETY THE MORTGAGE LENDER SAID ITS LATEST MONTHLY SURVEY PUT ITS UNADJUSTED HOUSE PRICE INDEX AT 19371 IN JUNE COMPARED WITH 19067 IN MAY AND 20078 A YEAR EARLIER NATIONWIDE'S OPERATIONS DIRECTOR BRIAN DAVIS SAID THE DATA SHOW A RECOVERY IN THE HOUSING MARKET DOES APPEAR TO BE UNDER WAY BUT HE ADDED THAT IT IS STILL FRAGILE WITH TURNOVER ONLY SLIGHTLY ABOVE LAST YEAR'S DEPRESSED LEVELS 9307060089 930706 URBAN AUSSIES HAVE THIS LITTLE PROBLEM LIVING WITH POSSUMS MELBOURNE'S MANY MARSUPIALS CUTE AND PROTECTED BY LAW CAN RAISE RUCKUS IN ATTICS BY JAMES P STERBA STAFF REPORTER OF THE WALL STREET JOURNAL MELBOURNE AUSTRALIA AFTER A NIGHT OF NOISY SEX HEAVY BREATHING SNARLING SPATS AND MUCH SCAMPERING TO AND FRO THE COUPLE UPSTAIRS SETTLES INTO A SUNRISE SLUMBER AS OUR BLEARYEYED HOMEOWNER IS ROUSED FROM A FITFUL SLEEP BY A SMELL THAT ISN'T FRESHBREWED COFFEE ENOUGH ALREADY IT'S TIME TO CALL PETER THE POSSUM MAN A POINT GUARD IN MELBOURNE'S ONGOING MARSUPIAL MAYHEM BUT PETER'S SIX TRUCKS ARE ALREADY OUT THIS MORNING RESPONDING TO OTHER COMPLAINTS COMPETITORS INCLUDING PAUL THE POSSUM CATCHER SHIELD PEST & WEED CONTROL'S POSSUM REMOVAL SPECIALISTS AND AN OUTFIT CALLED POSSOFF ARE ALSO AT WORK DEMOGRAPHERS SAY THAT AUSTRALIA IS THE LEAST DENSELY POPULATED AND MOST HIGHLY URBANIZED NATION ON EARTH CONTRARY TO MOVIES AND MYTH FEW OF ITS 17 MILLION PEOPLE ARE AT HOME IN THE OUTBACK THE CONTINENT'S VAST DRY EMPTY INTERIOR NEARLY NINE OF 10 OF THEM CLUSTER IN COASTAL CITIES WORLDS AWAY FROM THE DINGOES DUNNIES AND DIDGERIDOOS OF THE BUSH FORGET THOSE WILD DOGS OUTHOUSES AND ABORIGINAL WIND INSTRUMENTS FORGET CROCODILE DUNDEE PAUL HOGAN THE ACTOR WHO PLAYS HIM IN THE MOVIES GREW UP IN A SYDNEY SUBURB CONSIDER TELEVISION'S DAME EDNA HELLOOO POSSUMS EVERAGE BARRY HUMPHRIES THE ACTOR WHO PLAYS HER IN DRAG AS IN HIS WORDS A SILLY BIGOTED IGNORANT SELFSATISFIED MELBOURNE HOUSEWIFE GREW UP IN MELBOURNE'S SUBURBS LOATHING THE BURBS REAL POSSUMS ON THE OTHER HAND LOVE AUSSIE SUBURBIA THRIVING AT FOUR OR FIVE TIMES THE DENSITY THEY DO IN THE BUSH PROBABLY NOWHERE IN THE WORLD DO SO MANY PEOPLE AND POSSUMS DWELL IN SUCH PROPINQUITY AS THEY DO IN THE LEAFY HOUSEANDGARDEN SUBURBS OF MELBOURNE ON AUSTRALIA'S VERDANT SOUTH COAST WHAT RUNAWAY DEER POPULATIONS ARE TO AMERICA'S EASTERN SUBURBS STAYATHOME POSSUMS ARE TO MELBOURNE RESIDENTS WHO NUMBER 32 MILLION EITHER LOATHE THEM OR LOVE THEM TOURISTS ARE CRAZY ABOUT THEM POSSUMS THE MOST COMMON ARE BRUSHTAILS AND RINGTAILS PREFER DWELLING IN HOLLOWS IN BIG OLD TREES BUT SUCH HOLES ARE RARE IN TOWN EXCEPT IN PARKS SO ANY HOLE IN A ROOF THAT IS AS BIG AS A TENNIS BALL IS AN OPEN INVITATION FOR POSSUMS TO TAKE UP RESIDENCE AND ONCE ENSCONCED THEY REARRANGE THE INSULATION CHEW UP WIRING STAIN WALLS AND STINK UP THE PLACE WITH THEIR FOULSMELLING URINE BEING NOCTURNAL THEY EAT AND BOOGIE AT NIGHT WHAT'S MORE THE LAW IS ON THEIR SIDE AUSTRALIA HAS ABOUT TWO DOZEN SPECIES OF POSSUMS RANGING FROM CATSIZE TO COONSIZE THEY ARE FURRIER AND CUTER THAN THEIR HAIRY AMERICAN COUSINS NAMED OPOSSUMS BY INDIANS IN VIRGINIA AND DESCRIBED IN 1612 BY CAPT JOHN SMITH AS HAVING A HEAD LIKE A SWINE AND A TAIL LIKE A RAT AUSSIE POSSUMS ARE PROTECTED BY AUSTRALIA'S WILDLIFE ACT OF 1975 NO TRAPPING OR ERADICATING IS ALLOWED WITHOUT A LICENSE AND SUCH PERMITS ARE INCREASINGLY HARD TO COME BY BECAUSE HERE IN THE STATE OF VICTORIA THE DEPARTMENT OF CONSERVATION AND ENVIRONMENT HAS ADOPTED A PEOPLEPOSSUM COEXISTENCE POLICY AND HAS BEGUN A LIVING WITH POSSUMS CAMPAIGN POSSUMWISE I RECKON WE NOW GET AROUND 80 CALLS A WEEK SAYS BRIAN W ADAMS GENERAL MANAGER OF PETER THE POSSUM MAN WHICH ISN'T A REAL PERSON BUT RATHER A 25YEAROLD SUBSIDIARY OF ADAMS PEST CONTROL PTY LTD CALLERS INEVITABLY BEGIN HELLO PETER A LOT OF JOHNNYCOMELATELIES HAVE GOTTEN INTO THE BUSINESS HE SAYS MOST JUST CATCH POSSUMS AND TAKE THEM AWAY ANY FOOL CAN DO THAT THE TALENT HE SAYS IS IN FINDING THEIR HOLES AND POSSUMPROOFING THE ROOF HE GUARANTEES IT FOR A YEAR ENTER POSSUM SLEUTH BOB TURRA IN HIS NINTH YEAR OF SPOTTING POSSUM HOLES AND ESTIMATING REMEDY COSTS FOR PETER THE POSSUM MAN HE GUIDES A VISITOR ACROSS THE TIN ROOF OF A HOUSE IN FOOTSCRAY A WORKINGCLASS SUBURB ITS UNDERSIDE IS RIDDLED WITH ACCESS HOLES AND STAINS SEE THAT GREASY STUFF IT'S BODY OIL HE SAYS THAT'S WHERE THEY'RE GETTING IN SEE OVER HERE RATS AND LOOK AT THAT HAIR CATS TOO SHE'S GOT QUITE A MENAGERIE UP HERE NO WONDER IT'S NOISY HE ESTIMATES TRAPPING REPAIR AND FOLLOWUP AT 350 THE HOMEOWNER INSULTED ABOUT THE RATS DECIDES AGAINST IT UNTIL LAST FALL PROFESSIONAL POSSUMCATCHERS COULD TURN THEIR CATCHES OVER TO ANIMAL SHELTERS FOR RELOCATION THEY DID SO AT THE RATE OF MORE THAN 5000 ANNUALLY DOITYOURSELFERS COULD BORROW CAGES FROM TOWNSHIPS AND DO LIKEWISE THEN IAN TEMBY BECAME VICTORIA'S WILDLIFE DAMAGECONTROL OFFICER AND FOUND HE SAYS THAT OVER 90 OF THE RELOCATED POSSUMS DIED IN A MATTER OF HOURS OR A FEW DAYS FROM PREDATORS AND STRESS SOFT SUBURBAN POSSUMS SIMPLY COULDN'T HACK IT IN THE BUSH SO MR TEMBY IS TRYING TO PHASE OUT THE PRACTICE HE HAS WRITTEN LETTERS TO TOWNSHIPS URGING THEM TO STOP LENDING OUT CAGES HE WROTE A BOOK CALLED LIVING WITH WILDLIFE AND HE STARTED THE LIVING WITH POSSUMS CAMPAIGN THE IDEA HE SAYS IS FOR RESIDENTS TO BUILD POSSUM HOUSING IN THEIR TREES THAT LOOKS LIKE OVERSIZED BIRDHOUSES PETER THE POSSUM MAN SELLS POSSUM APARTMENTS FOR 65 BUT MR ADAMS NOTES THAT IT ISN'T EASY TO TALK A CLIENT INTO BUYING A HOUSE FOR AN ANIMAL THAT HAS TRASHED HIS OWN BUT WRITES MR TEMBY RELOCATION OF A POSSUM FROM ITS TERRITORY SIMPLY CREATES A VACANT TERRITORY THAT IS LIKELY SOON TO BE OCCUPIED BY ANOTHER POSSUM BESIDES GOES THE CURRENT ECOLOGICAL THINKING POSSUMS WERE HERE FIRST FOR ABOUT 65 MILLION YEARS BEFORE MAN ARRIVED AUSTRALIA WAS ONE VAST JURASSIC PARK FOR POSSUMS AND OTHER MARSUPIALS INCLUDING KANGAROOS WOMBATS KOALAS BANDICOOTS WALLABIES AND 100 OR SO OTHER SPECIES NOT TO MENTION TWO MONOTREMES THE PLATYPUS AND THE SPINY ANTEATER WHICH LAY EGGS MARSUPIALS ARE PRIMITIVE MAMMALS THAT RAISE THEIR PREMATURE YOUNG IN BELLY POUCHES IN CONTRAST TO PLACENTAL MAMMALS WHICH RAISE FETUSES IN WOMBS ISOLATED BY OCEANS FROM LANDMASSES WHERE HEARTIER PLACENTAL MAMMALS EVOLVED AND ELIMINATED MOST MARSUPIALS AUSTRALIAN MARSUPIALS THRIVED AND DIVERSIFIED ABOUT 30000 YEARS AGO ABORIGINAL HUMANS ARRIVED BRINGING A PLACENTAL CARNIVORE THE DINGO BEGINNING IN THE 18TH CENTURY EUROPEANS BROUGHT THEIR SHEEP CATTLE CATS RATS FOXES AND RABBITS MARSUPIALS WERE SLAUGHTERED TO MAKE WAY IN 1906 SOME FOUR MILLION AUSTRALIAN POSSUM SKINS WERE EXPORTED TO LONDON AND NEW YORK IN 1932 A MILLION POSSUM PELTS WERE MARKETED AS ADELAIDE CHINCHILLA EIGHT YEARS AGO POSSUM SKINS BROUGHT 1 MILLION TO LICENSED HUNTERS IN THE STATE OF TASMANIA IN 1990 THEY GOT ONLY 150000 THE 1975 WILDLIFE LAW WAS A GODSEND FOR MARSUPIALS AND OTHER NATIVE ANIMALS BUT SOME AUSSIES HAVE BEEN NURTURING THEM SINCE LONG BEFORE IT WAS ADOPTED FOR EXAMPLE GRAHAM COCHRAN A 77YEAROLD PENSIONER WHO LIVES ALONE HAS BEEN FEEDING THE POSSUMS IN YARRA PARK NEAR THE MELBOURNE CRICKET GROUND NIGHTLY FOR 35 YEARS HE FIGURES HE HAS MISSED ONLY ABOUT 20 FEEDINGS IN ALL THAT TIME EACH AFTERNOON AROUND 530 HE GETS 22 LOAVES OF LEFTOVER BREAD FROM AN ITALIAN BAKERY NEAR HIS APARTMENT AND STRIPS OFF THE HARD CRUST BECAUSE AS A BOY HE DIDN'T LIKE CRUST AND WETS THE BREAD INTO DOUGHY BALLS AT ABOUT 830 HE DRIVES HIS BATTERED OLD HOLDEN SEDAN TO THE PARK AND WHEELS A SHOPPING CARTLOAD OF BREAD FROM TREE TO TREE FEEDING DOZENS OF POSSUMS THEY KNOW TO EXPECT HIM I NAMED THIS ONE STUBBY MR COCHRAN SAYS FEEDING SOME BREAD TO AN EAGER POSSUM WITH SHORTENED BRUSHTAIL HE'S ME MATE 9307060088 930706 LETTERS TO THE EDITOR WORKING AT FDA IS SIMPLY DIVINE IN REGARD TO LEONARD G WILSON'S FDA RED TAPE DOOMS TRANSPLANT DRUG EDITORIAL PAGE JUNE 24 I CONGRATULATE DR WILSON FOR INSIGHTFUL WELLDOCUMENTED CRITICISMS OVER AN INSTANCE OF THE FDA'S RED TAPE AND INACTION MY OWN RESEARCH INDICATES THAT THESE CRITICISMS CAN BE EXTENDED TO OTHER EQUALLY TROUBLING CASES UNFORTUNATELY DR WILSON'S ESSAY RESTS ON THE POPULAR ASSUMPTION THAT THE FDA SHOULD CONCENTRATE ON THIS WORLDLY TASKS OF APPROVING DRUGS AND MEDICAL DEVICES THAT ARE SAFE EFFICACIOUS AND COSTEFFECTIVE DR WILSON AND JOURNAL READERS NEED TO REALIZE THAT THE FDA IS MINDFUL OF CALLINGS USUALLY RESERVED FOR THE DEITY AN AUTONOMOUS EXISTENCE TRANSCENDING HUMAN CRITICISM A CREED APPARENTLY ACCEPTED BY CONGRESS AND THE RIGHT TO PUNISH OFFENDERS UNTIL ACCORDING THE UNFATHOMABLE PURPOSES AND TIME FRAMES OF THE FDA THEY SUFFICIENTLY REPENT SUBMISSIVELY OBEY ITS COMMANDMENTS AND SHOW SIGNS OF GOOD WORKS WE FALLIBLE HUMAN BEINGS NEED TO RECOGNIZE THAT BY ITS OWN RECKONING SLIGHTS TO THE FDA ARE THEOLOGICALLY IMBUED THIS WILL FREE US FROM FRETTING OVER HOW MUCH THE FDA'S TIMELY REVIEWS AND APPROVALS CAN CONTRIBUTE TO BETTER AND LESS EXPENSIVE HEALTH CARE AND EVEN HELP STIMULATE THE ECONOMY 9307060087 930706 LEISURE & ARTS BOOKSHELF EXPLORING FATAL AFRICA' BY FRANK RUDDY IN THE LATE 18TH CENTURY WHEN MUNGO PARK ARRIVED IN WEST AFRICA THE CONTINENT WAS ALREADY KNOWN AS THE WHITE MAN'S GRAVE THE BRITISH CALLED THEIR NAVAL BASE IN GAMBIA HALFDIE EVEN SO IN THE 100 YEARS AFTER PARK'S LANDING OTHERS LIKE HIM CAME TO FATAL AFRICA AND BRAVED HEAT MIASMA SUFFOCATING CANE GRASS HOSTILE TRIBES WILD ANIMALS AND TERRIBLE DISEASES FRANK MCLYNN'S HEARTS OF DARKNESS CARROLL & GRAF 390 PAGES 2295 IS NOT JUST ANOTHER BOOK ABOUT THESE EXPLORERS ALTHOUGH THERE'S MUCH ABOUT THEIR EXPLOITS IT'S REALLY ABOUT WHAT IT TOOK TO EXPLORE AFRICA IN THE 19TH CENTURY VILLAINY RECORDS THE AUTHOR WAS A MUCHFLAUNTED TRAIT THESE MEN WOULDN'T MEET TODAY'S SENSITIVITY/NURTURING STANDARDS RICHARD BURTON AND JOHN HANNING SPEKE HATED ALL AFRICANS AS WELL AS EACH OTHER EVEN THE SAINTLY DAVID LIVINGSTONE CONSIDERED AFRICANS CHILDREN AND WAS NOT ABOVE THRASHING MISCREANTS AND THREATENING THEM WITH DEATH IN GENERAL THESE MEN AGREED WITH MACHIAVELLI THAT IT IS BETTER TO BE FEARED THAN LOVED SOME LIKE CARL PETERS TOOK IT TO AN INHUMAN EXTREME THE ONE THING HE SAID THAT WOULD MAKE AN IMPRESSION ON THESE SONS OF THE STEPPE THE MASAI WAS A BULLET FROM A REPEATER OR DOUBLEBARRELED RIFLE OTHERS LIKE THE GENERALLY DECENT PIERRE BRAZZA COULD ON OCCASION HANG A FEW AFRICANS AS AN EXAMPLE TO THE OTHERS ALL WERE A LAW UNTO THEMSELVES AND WHATEVER ELSE THEY MIGHT HAVE BEEN THEY WERE VERY BRAVE MUNGO PARK HAD BEEN A DOCTOR AND HIS NOTEBOOKS TOLD THOSE WHO WOULD COME AFTER HIM WHAT TO EXPECT IN THE WAY OF DISEASE YAWS YELLOW FEVER ELEPHANTIASIS GUINEA WORM LEPROSY AND OF COURSE MALARIA THERE WAS THE TSETSE FLY AND SLEEPING SICKNESS BILHARZIA FROM STILL WATER AND RIVER BLINDNESS FROM RUNNING WATER TWO KINDS OF DYSENTERY YELLOW FEVER SMALL POX TYPHUS CHOLERA BERIBERI AND PLAGUE IF YOU GOT VERY SICK IN AFRICA WHICH THE EXPLORERS KNEW WAS INEVITABLE THERE WERE NO HOSPITALS NO NICE NURSES DELIRIUM VOMITING DIARRHEA FOR DAYS ON END AND PROSTRATION WERE COMMON SPEKE AND LIVINGSTONE BECAME SO ILL THEY COULDN'T STAND BUT THEY CONTINUED EXPLORING CARRIED ON LITTERS HENRY MORTON STANLEY DROPPED 50 POUNDS IN A FEW MONTHS WHEN BURTON RETURNED TO ENGLAND IN 1859 AFTER 21 BOUTS OF FEVER HE WAS PARTIALLY PARALYZED PARTIALLY BLIND A MERE SKELETON WITH BROWNYELLOW SKIN HANGING IN BAGS HIS EYES PROTRUDING AND HIS LIPS DRAWN AWAY FROM HIS TEETH AFTER A FATTENINGUP PERIOD BURTON RETURNED TO AFRICA THERE WAS ALSO A GOOD CHANCE AN EXPLORER WOULD HAVE TO FIGHT FOR HIS LIFE SOME MEN SUCH AS LIVINGSTONE AND BRAZZA TRIED NOT TO MAKE WAVES THEY PAID THE TOLLS OR HONGO DEMANDED BY THE LOCAL TRIBES AND WENT ON THEIR WAY BUT EVEN THIS DOCILE APPROACH COULDN'T KEEP THEM ENTIRELY OUT OF TROUBLE AFRICAN TRIBES THAT GENERALLY STAYED TO THEMSELVES BECAME JUSTIFIABLY SUSPICIOUS OF STRANGERS WHO MIGHT VERY WELL BE SLAVERS OR CANNIBALS ATTACK FIRST AND ASK QUESTIONS LATER WAS NOT ALTOGETHER UNREASONABLE THERE WAS ALSO THE WHITENESS OF THE EXPLORERS WHICH MANY AFRICAN TRIBES ASSOCIATED WITH DEATH THE BANGALA WHO HAD NEVER SEEN A WHITE MAN ATTACKED STANLEY MINDING HIS OWN BUSINESS FOR ONCE THEY TOOK HIM FOR A GHOST THE GERMAN GEORG SCHWEINFURTH'S PARTY WAS AMBUSHED BY THE ABANGI TRIBE FOR NO OTHER REASON THAN THE MEN WERE EDIBLE MEAT MEAT WAS THE WARRIORS' BATTLE CRY EVEN THE WILY BURTON GOT A JAVELIN THROUGH THE MOUTH AND SPEKE 11 SPEAR WOUNDS IN A SURPRISE ATTACK BY THE EESA THE OTHER GREAT DANGER EXPLORERS FACED WAS WILD ANIMALS AS ONE EXPLORER FRED PULESTON WROTE IF A MAN IS KILLED BY A LEOPARD LION BOA HIPPO OR CROCODILE THE REPORT IS ALWAYS THE SAME FEVER' I WOULD ALWAYS SEND THE MOTHER FLOWERS WITH THE ASSURANCE THEY WERE PLUCKED FROM HER SON'S GRAVE WHEN THE ONLY GRAVE HER BOY HAD WAS A LEOPARD'S STOMACH LIONS WERE A SCOURGE BUT LEOPARDS WERE THE BOLD ONES EVEN WAITING FOR EXPLORERS INSIDE THEIR TENTS CROCODILES KILLED TOO MANY PEOPLE TO COUNT WHEN CROCODILE BELLIES WERE CUT OPEN IT WAS NOT UNCOMMON TO FIND THE RINGS AND EFFECTS OF 100 PEOPLE THERE WERE PUFF ADDERS AND MAMBAS CALLED THREE STEPS BECAUSE THAT'S HOW FAR YOU GOT BEFORE DYING OF A BITE ADULT MEN SLEPT WITH THEIR LEGS IN A V SHAPE TO AVOID BEING SWALLOWED WHOLE BY A PYTHON WHY DID THEY DO IT WHY DID THEY EVER DECIDE TO GO TO SUCH A HARD PLACE ENDURE SUCH SUFFERING PROBABLY TO DIE PREMATURELY THE AUTHOR'S LAST CHAPTER REVIEWS THE REASONS THE EXPLORERS GAVE FOR GOING WHICH WITH THE EXCEPTION OF LIVINGSTONE'S ARE VARIATIONS ON THE BECAUSE IT WAS THERE THEME NOT ONE REALLY KNEW WHY HE WENT THE CHAPTER AND THIS IS THE ONLY REAL SHORTCOMING OF THE BOOK THEN DEGENERATES INTO GLOBS OF PSYCHO MUSH WITH QUOTES SUCH AS IN PSYCHOANALYTIC WORK IT HAS BEEN FOUND THAT FANTASIES OF EXPLORING THE MOTHER'S BODY WHICH ARISE OUT OF THE CHILD'S AGGRESSIVE SEXUAL DESIRES GREED CURIOSITY AND LOVE CONTRIBUTE TO MAN'S INTEREST IN EXPLORING NEW COUNTRIES AND IN THE EXPLORER'S UNCONSCIOUS MIND A NEW TERRITORY STANDS FOR A NEW MOTHER UH HUH DR RUTH DOES AFRICA THE AUTHOR IS RIGHT ABOUT ONE THING THOUGH THEY ALL HAD TO BE A LITTLE BIT CRAZY TO VENTURE INTO THE HORRORS OF 19THCENTURY AFRICA IN THE FIRST PLACE MR RUDDY A FORMER US AMBASSADOR TO EQUATORIAL GUINEA IS A VISITING SCHOLAR AT JOHNS HOPKINS SCHOOL OF ADVANCED INTERNATIONAL STUDIES IN WASHINGTON 9307060086 930706 ECONOMY EMPLOYMENT WAS SET BACK DURING JUNE BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ECONOMY IS SHOWING MORE SIGNS OF WEAKNESS THE LATEST SETBACK IS IN THE LABOR MARKET THE ECONOMY GENERATED ONLY 13000 NEW JOBS IN JUNE ACCORDING TO THE LABOR DEPARTMENT THAT FOLLOWS AN IMPRESSIVE 215000 INCREASE IN MAY AND A 256000 GAIN IN APRIL WHICH MANY ANALYSTS THOUGHT MARKED RENEWED LIFE IN THE JOB SECTOR MANUFACTURERS LOST JOBS AGAIN IN JUNE WHILE THE SERVICEPRODUCING SECTOR GENERATED FEWER JOBS THAN IT HAS IN SEVERAL MONTHS AT THE SAME TIME THE DEPARTMENT SAID THE UNEMPLOYMENT RATE WHICH HAD DROPPED TO 69 OF THE WORK FORCE IN MAY RETURNED TO THE 70 LEVEL THAT HAS PREVAILED MOST OF THE YEAR OTHER RECENT STATISTICS ALSO SIGNAL A PAUSE IN THE ECONOMY CONSUMER CONFIDENCE SLID MORE DEEPLY INTO THE DUMPS LAST MONTH AND MANUFACTURING ACTIVITY CONTRACTED ACCORDING TO A CLOSELY FOLLOWED PURCHASING MANAGEMENT REPORT FACTORY ORDERS FELL IN MAY AND A DECLINE IN THE INDEX OF LEADING INDICATORS STATISTICS USED TO FORECAST ECONOMIC GROWTH SUGGEST THINGS AREN'T GOING TO GET MUCH BETTER SOON PEOPLE FEEL UNCERTAIN UNNERVED THEY ARE WORRIED ABOUT THEIR JOBS AND THE ECONOMY SEEMS TO BE LOSING MOMENTUM SAID MAUREEN ALLYN CHIEF ECONOMIST AT SCUDDER STEVENS & CLARK INC IN BOSTON LAURA TYSON HEAD OF THE WHITE HOUSE COUNCIL OF ECONOMIC ADVISERS SAID DISCONCERTING INDICATORS MAY CAUSE THE CLINTON ADMINISTRATION TO LOWER ITS GROWTH FORECAST FOR 1993 TO SLIGHTLY BELOW 25 THE ADMINISTRATION HAD FIRST SAID 31 MANUFACTURING IS WEAK WHERE THE ECONOMY SEEMS TO BE HURTING MOST IS IN THE MANUFACTURING SECTOR MANUFACTURERS CONTINUED TO PULL WORKERS OFF THE FACTORY FLOOR LAST MONTH CUTTING PAYROLLS BY 53000 MOST OF THE JOB LOSS CAME IN THE DURABLEGOODS SECTOR NOTABLY TRANSPORTATION AND ELECTRONIC EQUIPMENT SINCE FEBRUARY ROUGHLY 190000 JOBS HAVE BEEN LOST IN THE MANUFACTURING SECTOR AND THE NUMBER OF JOBS AT FACTORIES IS NOW 17 MILLION LOWER THAN IT WAS AT ITS PEAK IN JANUARY 1989 ALSO TROUBLESOME IS THAT FACTORY EMPLOYEES WORKED FEWER HOURS LAST MONTH SUGGESTING THAT ORDERS HAVE SLOWED SO MUCH MANUFACTURERS CAN MEET DEMAND IN FEWER HOURS SHORTER WORK SCHEDULES WHICH PLAGUED THE SERVICE SECTOR AS WELL COULD ALSO SPELL BAD NEWS FOR CONSUMER SPENDING SOME ANALYSTS BLAME THE WEAKNESS IN MANUFACTURING ON THE COUNTRY'S MAJOR TRADING PARTNERS MOST OF WHOM ARE MIRED IN SEVERE ECONOMIC PROBLEMS AS A RESULT MANY MANUFACTURERS HAVE LOST SIGNIFICANT ORDERS FOR CAPITAL EQUIPMENT AND MACHINERY AND OTHER DURABLE GOODS SAYS AUDREY FREEDMAN PRESIDENT OF THE MANPOWER PLUS EMPLOYMENT CONSULTING FIRM MANUFACTURERS ARE MUDDLING ALONG THE BOTTOM THEY WILL BE THROUGH THE SUMMER AND MAYBE THROUGH THE FALL SAID THOMAS RUNIEWICZ INDUSTRIAL ECONOMIST FOR WEFA GROUP IN SUBURBAN PHILADELPHIA THE SERVICE SECTOR CONTINUED TO PRODUCE JOBS IN JUNE BUT NOT AT NEARLY THE PACE OF THE PREVIOUS FOUR MONTHS THE 79000 INCREASE WAS CENTERED IN RETAIL HEALTH AND BUSINESS SERVICES JOBS WERE LOST IN TRANSPORTATION WHOLESALE TRADE AND FINANCE INSURANCE AND REAL ESTATE WILLIAM BARRON ACTING COMMISSIONER OF THE BUREAU OF LABOR STATISTICS NOTED THAT THE NUMBER OF AMERICANS WORKING PART TIME FOR ECONOMIC REASONS AND THE NUMBER OF PEOPLE WHO HAVE STOPPED LOOKING FOR WORK BECAUSE THEY ARE DISCOURAGED HAVE BOTH HELD FAIRLY STEADY FOR NEARLY TWO YEARS THE LACK OF IMPROVEMENT IN THESE TWO INDICATORS CONTRASTS SHARPLY WITH THE EXPERIENCE IN OTHER RECOVERIES MR BARRON SAID JOHN MUELLER CHIEF ECONOMIST FOR LEHRMAN BELL MUELLER CANNON INC IN ARLINGTON VA SAID HE SUSPECTS THE ECONOMY IS SO SLOW BECAUSE LOW INTEREST RATES HAVEN'T YET FILTERED THROUGH THE SYSTEM THE EMPLOYMENT REPORT WASN'T ALL BAD NEWS THOUGH INFLATION SEEMS TO BE IN CHECK AFTER A PRICING SCARE EARLIER THIS YEAR AVERAGE HOURLY EARNINGS DROPPED 01 IN JUNE AND ARE UP ONLY 23 FOR THE YEAR ALL THOSE PEOPLE WHO WORRIED LAST MONTH ABOUT WAGE INFLATION BOY WERE THEY WRONG SAID DONALD RATAJCZAK WHO HEADS THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY THE BIG THREAT IS WHETHER PEOPLE WILL HAVE JOBS ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE EXCERPTS FROM THE LABOR DEPARTMENT'S EMPLOYMENT REPORT THE FIGURES ARE SEASONALLY ADJUSTED 9307060085 930706 LAW ANOTHER CLINTON PICK FOR A JUSTICE POST IS HAMPERED BY CONCERN OVER WRITINGS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ANOTHER OF PRESIDENT CLINTON'S CHOICES FOR A SENIOR JOB AT THE JUSTICE DEPARTMENT IS ENCOUNTERING PROBLEMS OVER HIS ACADEMIC WRITINGS IN LATE APRIL MR CLINTON PICKED GERALD TORRES TO HEAD THE DEPARTMENT'S ENVIRONMENT DIVISION BUT THE SELECTION HAS BOGGED DOWN PARTLY BECAUSE OF CONCERN IN THE ADMINISTRATION OVER SOME OF MR TORRES'S WRITINGS ON RACERELATED SUBJECTS ADMINISTRATION OFFICIALS ARE WORRIED ABOUT THE POTENTIAL FOR AN EMBARRASSMENT REMINISCENT OF THE FAILED NOMINATION OF LANI GUINIER TO BE THE DEPARTMENT'S CIVIL RIGHTS CHIEF MS GUINIER'S NOMINATION WAS WITHDRAWN IN JUNE AFTER MR CLINTON SAID HE DIDN'T AGREE WITH SOME OF HER VIEWS ON VOTING RIGHTS AND RACIAL POLITICS AS THE JULY 4 WEEKEND BEGAN MR TORRES'S NAME HADN'T BEEN SENT TO THE SENATE JUDICIARY COMMITTEE WHICH HOLDS HEARINGS ON SENIOR JUSTICE DEPARTMENT NOMINATIONS BEFORE THEY GO BEFORE THE SENATE FOR CONFIRMATION UNRELATED TO THE ISSUE OF MR TORRES'S WRITINGS THERE HAS BEEN A DELAY IN THE INVESTIGATION OF HIS BACKGROUND BY THE FEDERAL BUREAU OF INVESTIGATION ACCORDING TO JUSTICE DEPARTMENT SPOKESMAN CARL STERN HE DECLINED TO ELABORATE MR TORRES A LAW PROFESSOR AT THE UNIVERSITY OF MINNESOTA COULDN'T BE REACHED FOR COMMENT QUESTIONS HAVE BEEN RAISED ABOUT MR TORRES'S ASSERTION THAT MINORITY POLITICIANS TYPICALLY MUST DILUTE THEIR CULTURAL HERITAGE AND VIEWS TO WIN WHITE VOTERS' SUPPORT ANOTHER POTENTIAL WORRY IS HIS SKEPTICISM ABOUT RACIAL INTEGRATION BECAUSE OF ITS TENDENCY TO CAUSE MINORITYGROUP MEMBERS TO LOSE THEIR CULTURAL IDENTITY IN ADDITION MR TORRES HAS EXPRESSED SYMPATHY FOR A LEFTIST ACADEMIC MOVEMENT KNOWN AS CRITICAL LEGAL STUDIES ACCORDING TO AN ADMINISTRATION OFFICIAL THE MOVEMENT ASSERTS THAT THE AMERICAN JUDICIAL SYSTEM RATHER THAN TREATING PEOPLE IN A NEUTRAL FASHION UNFAIRLY ALLOWS THOSE WITH POWER TO SUPPRESS THOSE WHO LACK IT CONCERN ABOUT MR TORRES'S WRITINGS WAS FIRST REPORTED IN THE JULY 5 EDITION OF DOJ ALERT A WASHINGTON NEWSLETTER MR TORRES'S MAIN AREAS OF RESEARCH AND TEACHING ARE AGRICULTURAL AND ENVIRONMENTAL LAW HE HAS WRITTEN ABOUT ENVIRONMENTAL RACISM SUCH AS THE TENDENCY TO PUT TOXIC DUMPS NEAR POOR MINORITY NEIGHBORHOODS AMONG OTHER SUBJECTS IN 1991 HE WAS NAMED NATIONAL HISPANIC LAW PROFESSOR OF THE YEAR ACCORDING TO A JUSTICE DEPARTMENT STATEMENT WHEN HIS SELECTION WAS ANNOUNCED IN APRIL IN A SEPARATE JUSTICE DEPARTMENT IMBROGLIO A FEDERAL JUDGE FROM NEW YORK EMERGED AS A LEADING CANDIDATE TO SUCCEED WILLIAM SESSIONS AS DIRECTOR OF THE FBI JUDGE LOUIS FREEH IS A FORMER FBI AGENT AND FEDERAL PROSECUTOR MR SESSIONS HAS BEEN PRESSED TO LEAVE SINCE JANUARY WHEN DEPARTMENT ETHICS OFFICIALS DETERMINED HE HAD ABUSED SUCH OFFICIAL BENEFITS AS USE OF GOVERNMENT AIRCRAFT MR SESSIONS HAS BEEN NEGOTIATING HIS DEPARTURE WITH ATTORNEY GENERAL JANET RENO THE WHITE HOUSE HAD HOPED HE WOULD LEAVE QUIETLY SO THE PRESIDENT WOULDN'T HAVE TO FIRE HIM MR SESSIONS HAS REFUSED THOUGH HE IS SAID PRIVATELY TO ACKNOWLEDGE THAT HIS EXIT IS INEVITABLE IT APPEARS UNLIKELY A NEW DIRECTOR WILL BE NAMED BEFORE MR CLINTON RETURNS FROM HIS TRIP TO ASIA ACCORDING TO MR STERN THE JUSTICE DEPARTMENT SPOKESMAN 9307060084 930706 INTERNATIONAL CHINA CHARGES NEW PORT FEES BEIJING CHINA IS CHARGING NEW PORT AND SHIPPING FEES TO HELP FINANCE PORT CONSTRUCTION AN OFFICIAL REPORT SAID THE COUNTRY'S 85 OPEN PORTS ON THURSDAY BEGAN CHARGING THE NEW FEES WHICH INCLUDE EXTRA HANDLING COSTS FOR FREIGHT AS WELL AS A CHARGE ON PASSENGERS AND FREIGHT TRAVELING IN COASTAL AREAS AND ON INLAND RIVERS THE CHINA DAILY SAID BEFORE ONLY 26 OF CHINA'S OPEN PORTS CHARGED PORT AND SHIPPING FEES AN OPEN PORT IS ONE THAT CAN BE USED BY FOREIGN SHIPS THE REVENUE GENERATED BY THE NEW CHARGES WILL BE USED FOR SHIPBUILDING AND FOR IMPROVING FACILITIES IN MAJOR COASTAL PORTS AND PORTS ON THE YANGTZE RIVER AND AMUR RIVER WHICH FORMS THE NORTHEASTERN BORDER BETWEEN CHINA AND RUSSIA 9307060083 930706 BUSINESS BRIEF US SHOE CORP CHARGE TOTALING 64 MILLION IS SLATED FOR THE 2ND QUARTER US SHOE CORP SAID IT WILL TAKE A SECONDQUARTER CHARGE OF 64 MILLION OR 14 CENTS A SHARE TO COVER THE SALE OF TWO TROUBLED APPAREL UNITS TO AIJJ ENTERPRISES CO A CLOSELY HELD APPAREL CONCERN BASED IN BROOKLYN NY THE SALE INCLUDES 124 CAREN CHARLES AND 61 UPS 'N DOWNS STORES PLUS RIGHTS TO THOSE TRADE NAMES THE REMAINING 30 STORES OF THE TWO CHAINS WILL BE CLOSED AS THEIR LEASES EXPIRE THIS YEAR COMPLETING US SHOE'S WITHDRAWAL FROM THE CHAIN TERMS WEREN'T DISCLOSED BUT THE CHARGE FOR THE SALE INDICATES THAT THE FOOTWEAR APPAREL AND OPTICALPRODUCTS CONCERN SOLD THE UNITS FOR ABOUT 274 MILLION ACCORDING TO AN ESTIMATE BY ABRAHAM & SONS ANALYST BRETT BRUBAKER ON FRIDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE US SHOE COMMON CLOSED AT 975 A SHARE UNCHANGED 9307060082 930706 IT'S THE CURRENTACCOUNT DEFICIT STUPID BY CHARLES WOLF JR AMERICAN LEADERS TRAVELING TO TOKYO FOR THIS WEEK'S G7 SUMMIT ARE HOPING FOR SOME KIND OF BREAKTHROUGH IN OPENING JAPAN'S MARKETS IT IS TRUE THAT JAPANESE CONSUMERS WOULD BENEFIT IF JAPAN OPENED ITS MARKETS MORE FULLY ELIMINATED ITS OFTEN SUBTLE NONTARIFF BARRIERS TO IMPORTS OF SERVICES AS WELL AS GOODS AND REMOVED EXISTING RESTRICTIONS ON THE PARTICIPATION OF FOREIGN FIRMS IN JAPANESE GOVERNMENT PROCUREMENT CONTRACTS AMERICAN EXPORTERS TOO WOULD BENEFIT FROM THE CHANGE ALTHOUGH LESS SO BECAUSE OTHER NATIONS WOULD GET SOME SHARE OF THE INCREASED TRADE WITH JAPAN WHILE SUCH STEPS MIGHT HAVE SOME EFFECT IN REDUCING THE US DEFICIT IN MERCHANDISE TRADE WITH JAPAN THEY DON'T GET AT THE DEEPER PROBLEM THEY WOULD HAVE NO EFFECT ON THE US'S CURRENTACCOUNT DEFICIT WHICH IS THE EXCESS OF US PAYMENTS FOR ALL IMPORTS OF GOODS AND SERVICES OVER ITS EARNINGS FROM EXPORTS OF GOODS AND SERVICES THAT DEFICIT CURRENTLY RUNNING AT AN ANNUAL RATE OF ABOUT 50 BILLION REPRESENTS THE DIFFERENCE BETWEEN THE US GLOBAL DEFICIT OF 110 BILLION IN MERCHANDISE TRADE OF WHICH HALF IS WITH JAPAN AND THE US GLOBAL SURPLUS OF 60 BILLION IN SERVICE TRADE OF WHICH ABOUT 10 BILLION IS WITH JAPAN THE 50 BILLION CURRENTACCOUNT DEFICIT WON'T BE AFFECTED BY LIBERALIZATION OF THE JAPANESE MARKET BECAUSE IT DEPENDS ON AND IS EXACTLY EQUAL TO THE AMOUNT BY WHICH GROSS SAVINGS IN THE US FALL SHORT OF GROSS INVESTMENT IN THE US A DIFFERENCE OF LESS THAN 1 OF THE US GROSS DOMESTIC PRODUCT IN ITS TURN THE SAVINGS VS INVESTMENT DEFICIT DEPENDS ON US MACROECONOMIC POLICIES SPECIFICALLY ON US FISCAL AND MONETARY POLICIES DIMINISHING THE CURRENTACCOUNT DEFICIT DEPENDS ON REAL CHANGE HERE THAT TURNS US CITIZENS AND THEIR GOVERNMENT INTO BETTER SAVERS IT DOES NOT DEPEND ON ATTACKING THE VESTIGES OF JAPANESE MERCANTILISM REFLECTED IN ITS PROTECTIVE TRADE POLICIES BEING TOUGH IN TRADE NEGOTIATIONS WITH JAPAN AS A REFLECTION OF WHAT IS SOMETIMES REFERRED TO AS STRATEGIC TRADE POLICY OR MANAGED TRADE MAY AFFECT JAPAN'S WILLINGNESS TO ADOPT THE LIBERALIZATION MEASURES JUST MENTIONED OR IT MAY NOT EITHER WAY THE US CURRENTACCOUNT DEFICIT WILL NOT BE AFFECTED A POINT THAT HAS BEEN VIRTUALLY IGNORED IN MOST OFFICIAL AS WELL AS PRESS DISCUSSIONS OF THE SUBJECT ABSENT A RISE IN US SAVINGS OR A FALL IN US INVESTMENT INCREASED US EXPORTS TO JAPAN WILL SIMPLY LEAD TO INCREASED US IMPORTS FROM JAPAN OR ELSEWHERE OR REDUCTIONS IN OTHER US EXPORTS WITHOUT CHANGING THE OVERALL US CURRENTACCOUNT DEFICIT EXPECTATIONS TO THE CONTRARY WILL INEVITABLY BE DISAPPOINTED RESULTING IN SCAPEGOATING AND RESENTMENT IN BOTH THE US AND JAPAN IN THE US JAPAN WILL BE BLAMED HOWEVER MUCH OR LITTLE IT CONCEDES BECAUSE SHRINKING THE US CURRENTACCOUNT DEFICIT DEPENDS ON MEASURES THAT ARE LARGELY UNRELATED TO WHATEVER JAPAN DOES OR REFRAINS FROM DOING ON TRADE LIBERALIZATION IN JAPAN THE US WILL BE BLAMED FOR UNREALISTICALLY EXPECTING FROM JAPAN SOMETHING THAT DEPENDS INSTEAD ON MACROECONOMIC CONDITIONS AND POLICIES IN THE US THE RECALCITRANT US CURRENTACCOUNT DEFICIT MIGHT BE REDUCED BY A RISE IN US GROSS SAVINGS OR A FALL IN US GROSS INVESTMENT EITHER OR BOTH OF THESE MIGHT COME ABOUT AS A RESULT OF A SERIOUS RECESSION CLEARLY SOMETHING THAT WOULD BE MUCH LESS WELCOME THAN THE MODEST CURRENTACCOUNT DEFICIT OR BY FURTHER DEPRECIATION OF THE ALREADY UNDERVALUED DOLLAR WHICH MIGHT INCREASE GROSS SAVINGS AS A RESULT OF WORSENING THE TERMS OF TRADE INCREASED GROSS SAVINGS AND/OR DECLINING GROSS INVESTMENT MIGHT PREFERABLY COME ABOUT EITHER THROUGH REDUCTIONS IN GOVERNMENT SPENDING OR CHANGES IN THE US TAX STRUCTURE FOR EXAMPLE ELIMINATING THE EXISTING DOUBLE TAXATION OF DIVIDENDS WOULD BOOST SAVINGS INDEXING CAPITAL GAINS WOULD BOOST INVESTMENT NONE OF THE TINKERING GOING ON IN THE CURRENT BUDGET RECONCILIATION PROCESS EVEN APPROACHES SUCH RADICAL CHANGE MUCH OF THE FOREGOING IS CONTROVERSIAL NONE OF IT SHOULD BE BECAUSE IT FOLLOWS INESCAPABLY FROM THE FACTS OF THE MATTER THAT THIS MISUNDERSTANDING IS WIDESPREAD REFLECTS THE DEPLORABLE GAP BETWEEN RHETORIC AND PERCEPTIONS ON THE ONE HAND AND REALITY ON THE OTHER THE GAP BETWEEN RHETORIC AND REALITY CONTRIBUTED TO THE ACERBIC TONE OF THE LAST MEETING BETWEEN PRESIDENT CLINTON AND PRIME MINISTER MIYAZAWA IN WASHINGTON IN APRIL IT MAY ALSO MAR THE SUMMIT WHAT MIKE MANSFIELD THE FORMER US AMBASSADOR TO JAPAN REFERRED TO AS THE MOST IMPORTANT BILATERAL RELATIONSHIP IN THE WORLD BAR NONE WOULD BE LESS TROUBLED IN THE FUTURE IF THIS GAP BETWEEN RHETORIC AND REALITY WERE NARROWED NOT ONLY BETWEEN THE US AND JAPAN BUT WITHIN THE US GOVERNMENT AS WELL MR WOLF IS DEAN OF THE RAND GRADUATE SCHOOL AND DIRECTOR OF ECONOMIC RESEARCH IN RAND'S NATIONAL DEFENSE RESEARCH INSTITUTE 9307060081 930706 REVIEW & OUTLOOK EDITORIAL ASIDES TRASHED JUST AS VICE PRESIDENT GORE'S DISCIPLES ARE GEARING UP TO COPY GERMANY'S AMBITIOUS TRASH RECYCLING PROGRAM THE GERMANS THEMSELVES ARE DEEMING THE PROGRAM THERE KAPUTT BONN LAST WEEK TOLD THE BRITISH PRESS IT INTENDS TO ALLOW INCINERATION OF PRODUCTS SUCH AS PLASTICS WHEN RECYCLING DOES NOT MAKE SENSE ECONOMICALLY THAT'S A MAJOR REVERSAL FOR THE WORLD'S MOST AMBITIOUS RECYCLER SINCE 1991 CHANCELLOR KOHL HAS FORCED CITIZENS INTO A RIGOROUS DAILY SORTING ROUTINE INVOLVING FIVE CATEGORIES PAPER METALS GLASS PLASTICS AND OTHER AND BUSINESSES PICK UP THE COSTS OF COLLECTING CONTAINERS BUT EVEN THE LAND OF ORDNUNG FOUND THE PROJECT TOO MUCH IT HAD TROUBLE SELLING THE SORTED GARBAGE AND ENDED UP DUMPING IT IN OTHER EUROPEAN MARKETS IT HAD EVEN MORE TROUBLE JUSTIFYING THE COST WHICH A RECENT REPORT PUTS AT CLOSE TO 2 BILLION ANNUALLY MAYBE THIS REALITY CHECK WILL MOVE AL GORE'S GREEN GROUPIES TO DO SOMETHING LOGICAL ABOUT THEIR ANTIINCINERATOR PHOBIAS GET OVER THEM 9307060080 930706 INTERNATIONAL HAITIAN MILITARY'S PACT TO CEDE POWER MAY REQUIRE GLOBAL EFFORT TO ENSURE BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON UNFLAGGING DIPLOMACY AND A BIG FINANCIAL STICK FINALLY PERSUADED HAITI'S MILITARY RULERS TO AGREE TO RELINQUISH POWER IT WILL TAKE THE SAME TOOLS AND POSSIBLY YEARS OF INTERNATIONAL ENGAGEMENT TO MAKE CERTAIN THEY LIVE UP TO THAT COMMITMENT ACCORDING TO A UNITED NATIONSBROKERED AGREEMENT SIGNED IN NEW YORK HAITI'S FIRST DEMOCRATICALLY ELECTED PRIDENT THE REV JEANBERTRAND ARISTIDE WILL BE RETURNED TO POWER ON OCT 30 LT GEN RAOUL CEDRAS WHO LED THE 1991 COUP THAT OUSTED PRESIDENT ARISTIDE AGREED TO STEP DOWN ONLY AFTER THE UN LATE LAST MONTH IMPOSED A PUNISHING OIL AND ARMS EMBARGO AND FROZE THE ASSETS OF HIS TOP SUPPORTERS PRESIDENT ARISTIDE WHO HAS REJECTED PREVIOUS COMPROMISES SIGNED ON AND AGREED TO POSTPONE HIS RETURN ONLY AFTER UN AND US NEGOTIATORS THREATENED TO ABANDON THE TALKS AND PROMISED TO COMMIT BOTH MONEY AND TROOPS TO HELP THE ACCORD SUCCEED AS PROOF OF THEIR CONTINUING MISTRUST AND BITTERNESS THE TWO LEADERS NEVER MET FACE TO FACE DURING THE LONG NEGOTIATIONS OR EVEN FOR THE SIGNING A SEQUENCE OF DIFFICULT POLITICAL STEPS MUST NOW BE TAKEN BY ALL SIDES WITH NO GUARANTEE OF SUCCESS REPRESENTATIVES FROM HAITI'S BITTERLY DIVIDED POLITICAL PARTIES MUST AGREE TO A PLAN FOR RECONSTITUTING A LEGITIMATE PARLIAMENT THE VOLATILE AND AT TIMES RADICAL PRESIDENT ARISTIDE MUST ALSO SELECT A NEW PRIME MINISTER WITH BROAD ENOUGH POLITICAL SUPPORT TO WIN RATIFICATION FROM THE NEW PARLIAMENT AND EFFECTIVELY GUIDE THE TRANSITION TO FULL DEMOCRATIC RULE MOREOVER PRESIDENT ARISTIDE'S PRIMARY BACKERS THE COUNTRY'S POOR AND DISPOSSESSED MUST FIND PEACEFUL WAYS TO SUPPORT THEIR LEADER'S RETURN WITHOUT THREATENING A NERVOUS MILITARY OR PROVOKING A BACKLASH HUNDREDS OF HAITIANS HAVE BEEN KILLED SINCE THE COUP WHEN THE ARMY OPENED FIRE ON PROTESTERS THE MILITARY MEANWHILE MUST BEGIN SHOWING RESTRAINT AS IT PREPARES ITSELF TO CEDE POWER REFORM ITS RANKS AND REDUCE ITS NUMBERS BEFORE HE RETURNS TO HAITI PRESIDENT ARISTIDE WILL CHOOSE A NEW ARMY COMMANDER AND HIGH COMMAND THE ARMY WILL ALSO HAVE TO REDIRECT ITS ENERGIES TO DEFENDING HAITI'S BORDERS AND BUILDING UP ITS SHATTERED ECONOMY LESSPRESTIGIOUS AND LUCRATIVE EMPLOYMENT THAN IT HAS BECOME ACCUSTOMED TO IN RECENT YEARS NONE OF THIS WILL WORK HOWEVER WITHOUT A CONSIDERABLE INVESTMENT OF RESOURCES AND ATTENTION FROM THE INTERNATIONAL COMMUNITY PARTICULARLY THE US WHICH TOOK A LEADING ROLE IN CRAFTING THE SETTLEMENT THE UN WILL SUSPEND THE EMBARGO ONCE THE NEW PRIME MINISTER TAKES OFFICE THE INTERNATIONAL COMMUNITY IS ALSO EXPECTED TO FINANCE AN AMBITIOUS AID AND RECONSTRUCTION PROGRAM TOTALING 1 BILLION OVER THE NEXT FIVE YEARS ACCORDING TO PRESIDENT CLINTON MR CLINTON LAST WEEKEND PLEDGED 375 MILLION AS THE US'S FIRST CONTRIBUTION TO THAT EFFORT AT THE SAME TIME THE UN HAS AGREED TO DISPATCH MILITARY TRAINERS AND MONITORS TO MEDIATE THE TRANSITION RETRAIN THE MILITARY AND POLICE AND MAKE CERTAIN THAT NO SIDE IN THE CONFLICT SEEKS REVENGE THE US WILL LIKELY SEND FEWER THAN 1000 TROOPS ACCORDING TO SECRETARY OF STATE WARREN CHRISTOPHER THE BULK OF THE FORCE IS EXPECTED TO COME FROM FRENCHSPEAKING COUNTRIES THE RESTORATION OF DEMOCRACY IN HAITI HAS BEEN A TOP PRIORITY FOR MR CLINTON EVER SINCE HE RENEGED ON A CAMPAIGN COMMITMENT TO EASE IMMIGRATION RESTRICTIONS FOR HAITIAN POLITICAL REFUGEES FEARING A MASS EXODUS TO THE US MR CLINTON IS HOPING THAT THERE WILL BE LESS OF A PUSH FOR HAITIANS TO LEAVE ONCE DEMOCRACY IS REESTABLISHED AND THERE ARE HOPES FOR ALLEVIATING THE COUNTRY'S CRUSHING POVERTY A GOOD PART OF THE CREDIT FOR THE ACCORD BELONGS TO THE CLINTON ADMINISTRATION THE US PERSUADED THE UN TO IMPOSE THE ECONOMIC EMBARGO AND ISSUED A SERIES OF WELLTIMED AND CAREFULLY VEILED THREATS WHICH TOGETHER HELPED TURN THE MILITARY AROUND THE US ALSO HELD OUT BOTH CARROTS AND STICKS TO WIN PRESIDENT ARISTIDE'S SIGNATURE PRESIDENT CLINTON HERALDED THE ACCORD AS A HISTORIC MOMENT FOR THE HAITIAN PEOPLE FOR THE HEMISPHERE AND FOR THE PRINCIPLE OF DEMOCRATIC RULE 9307060079 930706 EDUCATION TECHNOLOGIES KEEP PARENTS TIED TO SCHOOL BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL ELK GROVE CALIF REMEMBER BRINGING HOME YOUR REPORT CARD TO MOM AND DAD OR EXPLAINING A TEACHER'S PHONE CALL THAT NAILED YOU FOR PLAYING HOOKY THESE DAYS PARENTS CAN REVIEW THEIR CHILD'S EDUCATIONAL PROGRESS ALMOST INSTANTANEOUSLY THROUGH A HOST OF TECHNOLOGIES FROM VOICE MAIL TO ONLINE SERVICES TO INTERACTIVE VIDEOS PIPED OVER HOME TELEVISION SETS THE GAP BETWEEN HOME AND SCHOOL IS NARROWING FAST WHETHER KIDS LIKE IT OR NOT TAKE LUCY SHAW ONE OF MORE THAN 700 CALIFORNIA PARENTS TESTDRIVING A TINY VIDEO MONITOR CALLED A MINITEL WHICH IS WIDELY USED IN FRENCH HOUSEHOLDS SEVERAL TIMES A WEEK MRS SHAW SWITCHES ON THE MINITEL PLUGGED INTO HER TELEPHONE TO RECEIVE ANNOUNCEMENTS FROM JAMES MCKEE ELEMENTARY SCHOOL HERE SOON SHE WILL BE ABLE TO PEEK AT HER NINEYEAROLD SON WESLEY'S ASSIGNMENTS AND GRADES AS WELL MRS SHAW'S MONITOR IS LINKED BY MODEM TO A MAINFRAME COMPUTER AT SAN FRANCISCOBASED 101 ONLINE INC A UNIT OF META INTERNATIONAL OF FRANCE IN A THREEMONTHOLD PILOT PROJECT PARENTS TEACHERS AND STAFF AT JAMES MCKEE AND AT HAZELWOOD SCHOOL IN CAMPBELL CALIF HAVE BEEN USING FREE MINITELS TO CONFER BY ELECTRONIC MAIL TO CHECK ATTENDANCE EVEN TO LOOK UP LUNCH MENUS ACCESS TO TEACHERS' HOMEWORK ASSIGNMENTS AND GRADEBOOKS IS ONLY A FEW SOFTWARE ADJUSTMENTS AWAY THAT OPTION GIVES SOME STUDENTS PAUSE IF MY PARENTS WERE ABLE TO FIND OUT ABOUT MY HOMEWORK I FEEL IT WOULD BE AN INVASION OF MY PRIVACY SAYS KIRA RICKETTS A 12YEAROLD JAMES MCKEE STUDENT LIKEWISE SOME PARENTS ARE LEERY OF THE BARRAGE OF NONEDUCATIONAL INFORMATION AVAILABLE THROUGH THE MINITELS WHICH ALLOW USERS TO LOG ON TO A SMORGASBORD OF ONLINE SERVICES AND BULLETIN BOARDS FROM WEATHER REPORTS TO AN ENCYCLOPEDIA TO AN ELECTRONIC PARTY CHAT LINE BARBARA SANDE DIMMITT A JAMES MCKEE PARENT WAS ALARMED TO FIND HER SEVENYEAROLD DAUGHTER RACHEL COMMUNICATING ON A CHAT LINE WITH A 27YEAROLD MAN WHO WANTED TO KNOW HER THOUGHTS AND FEELINGS FOR IMPROVING COMMUNICATION AND SAVING TIME AND PAPER THOUGH MANY TEACHERS AND PARENTS LIKE THE MINITEL MARTA MAESTAS A SIXTHGRADE TEACHER AT JAMES MCKEE USES HERS TO START COLLABORATIVE SHORT STORIES TO WHICH EACH STUDENT ADDS A LINE PARENTS GET A FEEL FOR WHAT KIDS ARE THINKING IN CLASS SHE SAYS FOR NOW THE JAMES MCKEE PROJECT IS FUNDED BY 101 ONLINE AND CITIZENS UTILITIES CO OF STAMFORD CONN WHICH SERVES ELK GROVE AND OTHER RURAL AREAS EACH DONATED 60000 IN EQUIPMENT AND SERVICES BUT THE AIM IS TO INTEREST PARENTS IN EVENTUALLY BECOMING SUBSCRIBERS AT AROUND 1195 A MONTH A GOAL CONSIDERED OPTIMISTIC BY SOME GIVEN CALIFORNIA'S WEAK ECONOMY AND DWINDLING SCHOOL BUDGETS JAMES MCKEE SCHOOL ADMINISTRATORS SAY THEY HOPE TO DECIDE SOON ON WHETHER TO KEEP THE NETWORK HAZELWOOD HASN'T BEEN ABLE TO COME UP WITH A SOLUTION THAT WOULD ENABLE IT TO AFFORD THE SYSTEM SAYS CONNIE ELNESS HAZELWOOD'S PRINCIPAL MORE THAN TWO DOZEN SCHOOLS IN THE SAN FRANCISCO BAY AREA ALSO HAVE STARTED TO EXPERIMENT WITH THE MINITEL NETWORK SOME SENDING NOTES IN SPANISH AND VIETNAMESE AND TWO SCHOOLS IN MINNEAPOLIS RECENTLY SIGNED UP FOR A PILOT PROJECT ACCORDING TO 101 ONLINE CHEAPER ALTERNATIVES TO THE MINITEL APPROACH ARE VOICEMAIL AND VOICEMESSAGING SYSTEMS WHILE NATIONAL STATISTICS AREN'T AVAILABLE PARENTTEACHER VOICE MAIL APPEARS TO HAVE SPREAD IN THE PAST FEW YEARS IT'S A LOWKEY WAY TO ENTER THE INFORMATION AGE SAYS PAULA SZULC OF HEZEL ASSOCIATES SYRACUSE NY WHICH TRACKS HIGHTECH TRENDS IN EDUCATION SCHOOLS USE A RANGE OF AUTOMATED VOICE SYSTEMS TO COMMUNICATE WITH PARENTS FULLERTON HIGH SCHOOL IN CALIFORNIA USES A COMPUTERIZED PHONEMESSAGING PROGRAM THAT AUTOMATICALLY CALLS STUDENTS' HOMES TO REPORT ABSENCES FROM ONE OR MORE CLASSES AT 150 TO 200 CALLS A NIGHT THE SYSTEM CATCHES A LOT OF TRUANCY SAYS PATTY JOHNSON SENIOR RECORDS CLERK SHE SAYS SHE BELIEVES THE SYSTEM HAS HELPED IMPROVE AVERAGE DAILY ATTENDANCE WHICH IS LINKED TO SCHOOL FUNDING ONE HITCH THERE'S NO GUARANTEE A PARENT WILL PICK UP THE PHONE WHEN THE COMPUTER CALLS OTHER SCHOOLS USE MORE ELABORATE VOICEMAIL ARRANGEMENTS THAT LET PARENTS HEAR DAILY HOMEWORK ASSIGNMENTS REPORT ABSENCES AND LEAVE MESSAGES FOR TEACHERS GOLDEN HILL ELEMENTARY SCHOOL ALSO IN FULLERTON PAYS THE PACIFIC BELL UNIT OF PACIFIC TELESIS GROUP 600 A MONTH FOR 100 LINES INCLUDING FOUR MAILBOXES PER TEACHER FOR INDIVIDUAL STUDENTS WHO NEED EXTRA ATTENTION IF YOU HAVE AN INTERESTED PARENT THAT'S THE NO 1 FACTOR TO MAKE A CHILD SUCCESSFUL IN SCHOOL SAYS PAT PULEO GOLDEN HILL'S PRINCIPAL VOICE MAIL DOESN'T ALWAYS GO OVER WELL IN SCHOOLS ANYONE WHO HAS USED VOICE MAIL KNOWS HOW INFURIATING IT CAN BE IN 1988 A TWOWAY SYSTEM THAT PROVIDED VOICE MAILBOXES TO PARENTS AND TEACHERS FLOPPED BECAUSE IT WAS TOO CONFUSING SAYS TOM BUCKLEY MANAGER OF EDUCATION RELATIONS AT SOUTHERN NEW ENGLAND TELEPHONE IN NEW HAVEN CONN FOR ALL THEIR DRAWBACKS THOUGH SCHOOL VOICEMAIL SYSTEMS ARE A BOON FOR SEPARATED OR WORKING PARENTS LISA TICE A WORKING MOTHER OF TWO GOLDEN HILL STUDENTS SAYS SHE RELIES ON VOICE MAIL TO FIND OUT WHAT'S GOING ON IN CLASS THERE'S A TENDENCY WHEN KIDS GET OLDER NOT TO GIVE YOU ALL THE PAPERWORK WHEN THEY GET HOME SHE SAYS AS MESSAGING SYSTEMS BECOME MORE COMMONPLACE SOME SCHOOLS ARE ADAPTING THEM FOR SPECIAL PURPOSES CINDY WHIPPLE WHO TEACHES 25 HANDICAPPED PRESCHOOLERS AT PALMER MEMORIAL SCHOOL IN MONTVILLE CONN HAS BEEN USING VOICE MAIL FOR THE PAST YEAR TO RECORD DAILY MESSAGES FOR PARENTS THE CHILDRENS' PHYSICAL AND SPEECH THERAPISTS ALSO TACK ON MESSAGES GETTING INFORMATION HOME THAT THE CHILDREN CAN'T COMMUNICATE THEMSELVES CABLE TV IS CLEARLY THE MOST BALLYHOOED TECHNOLOGY TO MAKE INROADS IN SCHOOLS AMONG US SCHOOLS 56 NOW GET SOME FORM OF CABLE PROGRAMMING ACCORDING TO QUALITY EDUCATION DATA OF DENVER THE LATEST TWIST INTERACTIVE EDUCATIONAL PROGRAMMING THAT'S SENT DIRECTLY TO STUDENTS' HOME TVS COMPLETE WITH SUGGESTED QUESTIONS FOR PARENTS SINCE JANUARY 124 FOURTHGRADERS IN THE DETROIT SUBURB OF STERLING HEIGHTS HAVE BEEN TRYING OUT THINKLINK A JOINT CREATION OF AMERITECH'S MICHIGAN BELL UNIT AND THE LOCAL SCHOOL DISTRICT STUDENTS USE REMOTE CONTROLS AND BLACK BOXES ON TOP OF THEIR TVS TO CHOOSE FROM A MENU OF TOPICS THAT WERE DESIGNED BY THEIR TEACHERS TO COMPLEMENT CLASSWORK A SCHOOL ADMINISTRATOR SAYS SCIENCE TEST SCORES HAVE RISEN SINCE THE PROJECT STARTED EDUCATION SPECIALISTS ARE GENERALLY KEEN ON INVOLVING PARENTS THROUGH TECHNOLOGY BUT GADGETS ALONE WON'T DO THE TRICK WITHOUT SPECIAL INSTRUCTION FOR TECHNOLOGYSHY PARENTS WARNS DONNA RHODES EXECUTIVE DIRECTOR OF THE NATIONAL FOUNDATION FOR THE IMPROVEMENT OF EDUCATION IN WASHINGTON IN ALMOST EVERY CASE KIDS ARE AHEAD OF THE PARENTS SAYS MRS RHODES 9307060078 930706 SPORTS SINKING ATTENDANCE LEADS BASEBALL CLUBS TO COME UP WITH A NEW PLAY MARKETING BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL MAJOR LEAGUE BASEBALL WHICH HAS BEEN STRIKING OUT WITH MORE AND MORE FANS IS TURNING TO MARKETING FOR RELIEF AND NONE TOO SOON FOR A GAME THAT CELEBRATES STATISTICS SOME OF ITS OWN HAVE BEEN DISPIRITING ATTENDANCE WHICH SET RECORDS MOST OF THE PAST DECADE FELL 17 LAST YEAR TV RATINGS OF REGULARSEASON GAMES HAVE SLID EACH OF THE PAST FIVE YEARS EVEN THE SPORT'S POPULARITY ACCORDING TO A RECENT HARRIS POLL IS IN A SLUMP ONLY 18 OF THOSE SURVEYED NAMED BASEBALL AS THEIR FAVORITE SPORT DOWN FROM 23 IN 1985 THE PERCENTAGE OF PROBASKETBALL FANS MEANWHILE DOUBLED TO 12 TO COUNTER THESE TRENDS TEAMS ARE PLOTTING DIFFERENT STRATEGIES SOME CLUBS ARE PUSHING CUSTOMERSERVICE PROGRAMS OTHERS ARE EMPHASIZING PRICE PROMOTIONS THE LEAGUE ITSELF RECENTLY APPOINTED A SPECIAL MARKETING COMMITTEE TO SPRUCE UP THE GAME'S IMAGE AND ANNOUNCED PLANS TO EXPAND THE ENDOFSEASON PLAYOFFS HOPING TO RETAIN FANS' INTEREST LATE IN THE YEAR PERHAPS THE BIGGEST THRUST IS A GRASSROOTS ATTEMPT TO RECONNECT WITH YOUNGSTERS THE MISSING GENERATION AS SOME CLUBS REFER TO THEM OTHER SPORTS RECOGNIZED THE VALUE OF MARKETING LONG AGO THE NATIONAL FOOTBALL LEAGUE BUILT A FOLLOWING AND KEPT RATINGS STRONG BY PROMOTING MONDAY NIGHT FOOTBALL THE NATIONAL BASKETBALL ASSOCIATION SPED UP ITS GAME AND WITH THE HELP OF ATHLETICSHOE COMPANIES CREATED LARGERTHANLIFE HEROES LIKE LARRY BIRD AND MICHAEL JORDAN ALL THE WHILE BASEBALL REMAINED A LITTLE FLATFOOTED RELYING MOSTLY ON THE GAME'S NATIONAL PASTIME STATURE TO FILL THE STANDS FOR YEARS BASEBALL DIDN'T MARKET ITSELF SAYS STEVE SCHANWALD WHO ONCE PROMOTED THE CHICAGO WHITE SOX AND PITTSBURGH PIRATES AND NOW IS VICE PRESIDENT MARKETING AND BROADCASTING FOR THE NBA'S CHICAGO BULLS FOR THE FIRST TIME BASEBALL IS FACING REAL COMPETITION BASEBALL IS HARDLY COMING APART AT THE SEAMS THE ADDITION OF THE TWO EXPANSION TEAMS THE COLORADO ROCKIES AND FLORIDA MARLINS HAS REJUVENATED INTEREST ATTENDANCE HELPED IN PART BY A CHANGE IN THE WAY THE NATIONAL LEAGUE MEASURES PATRONAGE IS UP SO FAR THIS YEAR AND MAJOR LEAGUE BASEBALLLICENSED MERCHANDISE LIKE CLOTHES AND KEY CHAINS IS A THRIVING 24 BILLION BUSINESS AT RETAIL WE THINK THE GAME ISN'T BROKEN SAYS LEONARD COLEMAN MAJOR LEAGUE BASEBALL'S EXECUTIVE DIRECTOR OF MARKET DEVELOPMENT RECENT RESEARCH HE SAYS SHOWS THAT FANS WANT ONLY ONE CHANGE FASTER GAMES CURRENTLY GAMES LAST NEARLY THREE HOURS ON AVERAGE ADDITIONALLY THE FOCUS ON LABORMANAGEMENT RELATIONS HASN'T BEEN CONSTRUCTIVE SAYS MR COLEMAN REFERRING TO THE DIVISIVENESS BETWEEN PLAYERS AND OWNERS NOW HE SAYS BASEBALL IS SEARCHING FOR WAYS TO SHIFT ATTENTION BACK TO THE GAME ITSELF TO CREATE NATIONAL STARS AND TO SNAP UP YOUNG FANS THE TEAMS THEMSELVES ARE CHASING FANS WITH BASIC ECONOMICS THIS YEAR TICKET PRICES ACROSS THE MAJORS SHOWED THEIR SMALLEST INCREASE 17 IN YEARS ACCORDING TO TEAM MARKETING REPORT NEWSLETTER THE CHICAGO WHITE SOX STARTED OFFERING THE FAMILY SOXPACK WITH 12 COVERING A TICKET A HOT DOG A COKE POTATO CHIPS AND A SOUVENIR THE HOUSTON ASTROS REVAMPED ALL THEIR CONCESSIONS BEGAN GRILLING INSTEAD OF BOILING HOT DOGS AND CUT THE PRICE OF A HOT DOG BY A QUARTER TO 175 WE CAN'T CONTROL THE WINNING SAYS TED HARACZ A VICE PRESIDENT OF THE HOUSTON ASTROS WHICH TRAILED THE NATIONAL LEAGUE IN ATTENDANCE LAST YEAR BUT WE CAN BE SURE THE BEER IS COLD AND THE HOT DOGS HOT THERE IS MUCH AT STAKE HERE BASEBALL IS SUFFERING AN EROSION OF FAN LOYALTY ACCORDING TO A NEW STUDY BY WUNDERMAN CATO JOHNSON A DIVISION OF YOUNG & RUBICAM THE NEW YORK ADVERTISING AGENCY BASEBALL ESPECIALLY ON TV LACKS THE INTIMACY OF A SPORT LIKE BASKETBALL THE STUDY FINDS AND FREQUENT ROSTER CHANGES AND FREE AGENTS WHO GIVE THE APPEARANCE OF CARING MORE ABOUT THEMSELVES THAN THE HOME TEAM MAKE BONDS BETWEEN FANS AND TEAMS MORE AND MORE FRAGILE IT'S HARD TO HAVE AN EMOTIONAL RELATIONSHIP WITH SOMETHING THAT IS UNSTABLE SAYS MARK LEVINE A LOYALTY RESEARCHER FOR WUNDERMAN SO MORE CLUBS ARE BENDING OVER BACKWARD TO HUMANIZE THEIR TEAMS AT A TIME WHEN BASEBALL PLAYERS ARE UNDER FIRE FOR BEING DISTANT THE PHILADELPHIA PHILLIES FIRE BACK WITH AUTOGRAPH MONDAYS ALLOWING THE FIRST 1000 YOUNG FANS ACCESS TO PENTOTING PLAYERS THE CALIFORNIA ANGELS HAVE REDOUBLED EFFORTS TO ANSWER THEIR FAN MAIL TO PLAYERS MUCH OF IT WITH AUTOGRAPHED RESPONSES AFTER THE BOSTON RED SOX FINISHED LAST IN THEIR DIVISION TEAM OWNERS TOOK OUT NEWSPAPER ADS LAST FALL WITH A THANK YOU LETTER TO THE 24 MILLION FANS WHO STUCK BY THEM THERE ARE NEW ATTEMPTS TO REACH MINORITIES MAJOR LEAGUE BASEBALL LAST MONTH BEGAN A NEW HALFHOUR SHOW ON TELEMUNDO THE SPANISHLANGUAGE NETWORK SPOTLIGHTING HISPANIC BALL PLAYERS THE ST LOUIS CARDINALS AND KANSAS CITY ROYALS ARE AMONG TEAMS SPONSORING A GROWING REVIVE BASEBALL IN THE INNER CITY RBI PROGRAM THAT AIMS TO POPULARIZE THE GAME IN LITTLE LEAGUELESS URBAN CENTERS AND FEARFUL THAT THE SLOWPACED NATURE OF BASEBALL PUTS IT INCREASINGLY OUT OF STEP WITH THE NINTENDOCRAZED SET TEAMS ARE ACTIVELY RECRUITING CHILDREN AS FANS BUT RATHER THAN LURING KIDS THROUGH THE TURNSTILES WITH HELMET AND BAT NIGHTS ALONE MORE TEAMS ARE TRYING TO IMMERSE THEM IN BASEBALL LAST MONTH TWO GIRLS 12 AND 14 YEARS OLD WON A CHICAGO CUBS CONTEST TO DO A LIVE PLAYBYPLAY RADIO BROADCAST DURING A GAME WITH THE CARDINALS THEIR AUDITION TAPE BEAT OUT DOZENS OF OTHER ENTRIES THE PHILADELPHIA PHILLIES THIS SEASON SET UP SPECIAL BATTING STATIONS AT THE STADIUM FOR KIDS TO TAKE PRACTICE SWINGS WITH HITTING INSTRUCTORS ON HAND TO CRITIQUE THE PHILLIES ALSO HELD A SEMINAR IN MARCH SHOWING 75 GRADESCHOOL TEACHERS HOW TO USE BASEBALL IN TEACHING MATH AND GEOGRAPHY THE PROGRAM WAS RUN BY BARBARA VELTRI A CONNECTICUT EDUCATOR WHO FOUND IT EASIER FOR HER OWN STUDENTS TO GRASP FRACTIONS FOR EXAMPLE BY EXPLAINING WHAT IT MEANS FOR A PITCHER TO THROW FOR TWOTHIRDS OF AN INNING FOR A GEOGRAPHY PROJECT STUDENTS STUCK TEAM DECALS ONTO A BIG MAP OF THE US NOTING THAT CALIFORNIA HAD FIVE DECALS WHILE STATES LIKE IDAHO AND WYOMING HAD NONE THEY LEARNED ABOUT THE COUNTRY'S POPULATION DENSITY EVEN BASEBALL ADVERTISING IS BEING TAILORED TO KIDS THE HOUSTON ASTROS ILLUSTRATE THEIR SLOGAN LET'S GET CHARGED WITH A TV SPOT SHOWING A PLAYER SWINGING A BAT THAT IS ALL AGLOW LIKE THE LIGHT SWORDS FROM STAR WARS THE CALIFORNIA ANGELS PRODUCED COMMERCIALS IN WHICH KIDS DEBATE WHAT TO DOGO TO THE MALL ROLLERBLADEAND THEN DECIDE TO GO TO AN ANGELS GAME MOST TEAMS ADMIT MUCH OF WHAT THEY ARE UP TO IS TRIAL AND ERROR AND SAY IT IS TOO EARLY TO TEL WHETHER THEY ARE MAKING A DENT IT TOOK A LONG TIME FOR BASEBALL TO GET IN ITS CURRENT PREDICAMENT SAYS JOHN SEVANO THE ANGELS' DIRECTOR OF CREATIVE SERVICES HOPEFULLY WE CAN GET THINGS BACK ON TRACK BUT IT'S GOING TO TAKE TIME 9307060077 930706 CLERK KENT ENTERS A PHONE BOOTH EXITS AS SUPERMANAGER SAVES FIRM BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL WESTLAKE VILLAGE CALIF FASTER THAN A SPEEDING MICROCHIP MORE POWERFUL THAN A CORPORATE LAWYER ABLE TO LEAP MIDDLE MANAGERS IN A SINGLE BOUND LOOK UP IN THE SUITES IT'S PROTOTYPE MALIBU COMICS ENTERTAINMENT INC HAS CREATED THE CORPORATE CRUSADER AS PART OF ITS JUSTLAUNCHED ULTRAVERSE COMICBOOK LINE WE FIGURED IF WE WERE GOING TO DO IT REALLY 90SISH THEN WE'D HAVE TO HAVE A BOOK ABOUT A COMPANY THAT WANTS ITS OWN SUPERHERO SAYS MALIBU'S PRESIDENT AND CHIEF EXECUTIVE SCOTT ROSENBERG THE COMIC BOOK WHICH HITS NEWSSTANDS NEXT MONTH IS THE TALE OF A FICTITIOUS DEFENSE COMPANY ULTRATECH INC THAT DEVELOPS AN INGENIOUS PUBLICRELATIONS SCHEME TO CLEAN UP ITS IMAGE AFTER A SERIES OF ILL WINDSTYLE SCANDALS USING ITS ENGINEERING EXPERTISE THE COMPANY MANUFACTURES A HIGHTECH ARMOR SUIT PUTS A FORMER HOLLYWOOD STUNTMAN NAMED BOB CAMPBELL INSIDE AND SHAZAM IT HAS ITS VERY OWN SUPERHERO PROTOTYPE AS ULTRATECH'S FRONT MAN PROTOTYPE RESCUES HOSTAGES CAPTURES CRIMINALS AND BATTLES SUPERVILLAINS HE'S ALSO GOOD AT DEMONSTRATING PRODUCTS CUTTING RIBBONS AND WOWING SHAREHOLDERS WHAT IF THE PILLSBURY DOUGHBOY HAD THE POWER TO SAVE THE WORLD ASKS TOM MASON EXPLAINING THE CONCEPT FOR THE COMIC BOOK WHICH HE CREATED ALONG WITH LEN STRAZEWSKI WHAT WOULD A COMPANY USE HIM FOR BESIDES CONVENTION ENTERTAINMENT AS THE COMICBOOK SERIES BEGINS BOB CAMPBELL FACES HIS GREATEST CHALLENGE YET ULTRATECH WANTS TO REPLACE HIM WITH A NEWANDIMPROVED PROTOTYPE THE SLOWDOWN IN DEFENSE CONTRACTING HAS LED THE COMPANY TO SWITCH TO CIVILIAN HOMESECURITY WORK AND THE PROFITCENTERED CHAIRMAN MR LELAND THINKS ULTRATECH NEEDS A LEANER MEANER AND MORE POWERFUL CORPORATE SPOKESPERSON COINCIDENTALLY OR NOT THE NOWFORTYSOMETHING MR CAMPBELL LOSES HIS ARM IN A MYSTERIOUS ACCIDENT CLEARING THE WAY FOR ULTRATECH TO UNVEIL A SHINY NEW PROTOTYPE 2000 AT THE ANNUAL MEETING MEANTIME MR CAMPBELL FILES AN AGEDISCRIMINATION SUIT AGAINST THE COMPANY WHEN HE CONFRONTS MR LELAND ABOUT IT AT THE ANNUAL MEETING THE CEO GIVES THE PERFECT EXECUTIVE'S ANSWER EXCUSE ME ARE YOU A SHAREHOLDER IF YOU ARE YOU KNOW IT IS NOT THE POLICY OF ULTRATECH TO RESPOND TO PENDING LITIGATION 9307060076 930706 JAPANESE BANKS CLEARED TO SET UP SECURITIES UNITS TOKYO TWO OF JAPAN'S COMMERCIAL LONGTERM CREDIT BANKS AND NORINCHUKIN BANK THE CENTRAL FINANCIAL INSTITUTION FOR AGRICULTURAL COOPERATIVES RECEIVED FORMAL FINANCE MINISTRY APPROVAL TO SET UP SECURITIES SUBSIDIARIES THE BANKS SAID THE GOAHEAD IS ANOTHER STEP BY REGULATORS IN IMPLEMENTING LEGISLATION PASSED BY PARLIAMENT A YEAR AGO LIBERALIZING BARRIERS BETWEEN JAPAN'S SECURITIES AND BANKING BUSINESSES TRUST BANKS AND SECURITIES FIRMS ARE ALSO LIKELY IN THE NEAR FUTURE TO ENTER EACH OTHER'S FIELDS BUT COMMERCIAL RETAIL BANKS HAVE TO WAIT INDUSTRIAL BANK OF JAPAN WILL SET UP A SUBSIDIARY WITH 25 BILLION YEN 2302 MILLION OF CAPITAL AND 138 EMPLOYEES LONGTERM CREDIT BANK OF JAPAN PLANS A SUBSIDIARY WITH CAPITAL OF 15 BILLION YEN AND 85 EMPLOYEES NORINCHUKIN INTENDS TO ESTABLISH A UNIT WITH CAPITAL OF 15 BILLION YEN AND 42 EMPLOYEES JAPAN'S THIRD LONGTERM CREDIT BANK NIPPON CREDIT BANK IS CONSIDERING A SUBSIDIARY TO CONCENTRATE ON SECURITIZATION THROUGH TRUSTS FOR REAL ESTATE ASSETS REGULATIONS WILL ALLOW THE NEW UNITS TO DEAL FAIRLY WIDELY IN BONDS BUT THEY CAN'T BROKER OR OTHERWISE SELL STOCKS EXCEPT TO UNDERWRITE ISSUES WHICH MAY EXCLUDE THEM FROM THE EQUITY MARKET 9307060075 930706 CREATING AN AWESOME' BASEBALL CARD BY MICHAEL J MCCARTHY THE FUTURE OF BASEBALL MARKETING MAY BE IN THE CARDS LAST YEAR LEAF INC NOTICING ITS DONRUSSBRAND BASEBALL CARDS WERE LOSING THEIR APPEAL AMONG YOUNGER COLLECTORS SET OUT ON A REDESIGN MISSION IN FOCUSGROUP RESEARCH GRADE SCHOOLERS MOSTLY BOYS PLAYED A SORTING GAME THEY WERE ASKED TO SEPARATE INTO PILES THE CARDS THEY LIKED REALLY LIKED AND DIDN'T LIKE INVARIABLY THE CARDBYCARD REVIEWS WOULD GO SOMETHING LIKE AWESOME COMMON SUPER AWESOME COMMON CARDS THAT RATED AWESOME AND HIGHER TYPICALLY HAD ACTION SHOTS THE RESULT A NEW SERIES OF CARDS CALLED TRIPLE PLAY THAT IS NOW IN ITS SECOND YEAR AND SELLING STRONGLY FRONT AND BACK THE CARDS REVEAL A METICULOUS EFFORT TO PUNCH UP THE LEISURELY GAME THE TRIPLE PLAY NAME SEEKS TO CAPTURE THE ENERGY OF ONE OF BASEBALL'S MOST EXCITING PLAYS THE CARDS 59 CENTS FOR A PACK OF 12 SHUN THE TRADITIONAL BATONTHESHOULDER SHOTS FOR DIRTFLYING SLIDES AND DIVING CATCHES SURPRISE CARDS ARE SPRINKLED IN DISPLAYING TEAM MASCOTS CHILDHOOD PHOTOS OF PLAYERS EVEN LEFTY BILL CLINTON TOSSING AN OPENINGDAY BALL ON THE BACKS PLAYER STATISTICS ARE REDUCED AND REPLACED WITH BASEBALLTRIVIA QUIZZES ANSWERS ARE IN REVERSE TYPE TO BE READ IN MIRRORS JIM HANLON PRESIDENT OF LEAF THE BANNOCKBURN ILL CANDY AND CARD COMPANY SAYS MAJOR LEAGUE BASEBALL SHOULD ALSO BE THINKING OF WAYS TO ENLIVEN THE SPORT IF BASEBALL DOESN'T FOCUS ON BUILDING ITS AUDIENCE AND FUTURE FANS HE SAYS IT IS GOING TO BE HURTING 9307060074 930706 QUARTERLY MUTUAL FUNDS REVIEW HABER KEEPS BALANCE TO CLIMB TO NEW HEIGHTS BY GENE COLTER SPECIAL TO THE WALL STREET JOURNAL NEW YORK OWNING A MIXTURE OF STOCKS AND BONDS MAY SOUND LIKE A PRESCRIPTION FOR MEDIOCRITY BUT IT SURE HASN'T WORKED OUT THAT WAY FOR SHAREHOLDERS OF THE FIDELITY BALANCED FUND THE FUND HAS RETURNED 909 SINCE MID1988 WHEN ROBERT HABER TOOK OVER AS THE SOLE PORTFOLIO MANAGER OF THE 31 BILLION FUND THAT'S BETTER THAN THE 733 AVERAGE RETURN FOR ALL BALANCED FUNDS AND ONLY MARGINALLY BELOW THE 935 GAIN FOR THE STANDARD & POOR'S 500STOCK INDEX ACCORDING TO FUND RESEARCHERS LIPPER ANALYTICAL SERVICES BALANCED FUND MANAGERS GENERALLY KEEP ABOUT 60 OF ASSETS IN STOCKS AND 40 IN BONDS BUT MR HABER USUALLY REVERSES THE NUMBERS THESE DAYS HE HAS 58 OF HIS FUND'S ASSETS IN BONDS AND MONEY MARKET INSTRUMENTS AND JUST 42 IN STOCKS AND OF HIS STOCK ALLOCATION ONLY 60 IS INVESTED IN US CORPORATIONS I'M IN THE CAMP THAT SAYS THE STANDARD & POOR'S 500 IS EXTREMELY EXPENSIVE SAYS THE 35YEAROLD MR HABER I DID LIVE THROUGH 1987 WHEN THE MARKET CRASHED AND THERE ARE ELEMENTS TODAY THAT ARE THE SAME THAT COMPLACENCY ABOUT OVERVALUATION OVER THE PAST FEW YEARS BALANCED FUNDS HAVE BEEN INUNDATED WITH MONEY FROM CONSERVATIVE INVESTORS WHO WERE FORCED OUT OF CERTIFICATES OF DEPOSITS AND MONEY MARKET ACCOUNTS BY DWINDLING INTEREST RATES THE FIDELITY BALANCED FUND'S ASSETS HAVE BALLOONED MORE THAN 10FOLD SINCE THE END OF 1990 WHEN PEOPLE ASK ME THIS YEAR TO NAME JUST ONE FUND THAT MIGHT BE A GOOD FUND FOR A BROAD AUDIENCE I NAME THE FIDELITY BALANCED FUND SAYS DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO MUTUAL FUND NEWSLETTER MR HABER HAS BEEN JUST AS TIMID AND CAUTIOUS IN HIS STOCKPICKING AS ONE CAN BE INDEED MR HABER HAS RARELY HAD MORE THAN 50 OF HIS HOLDINGS IN EQUITIES AND THE STOCK ALLOCATION HAS DIPPED AS LOW AS 35 WE'RE WELL INTO PERHAPS LATE INTO A BULL MARKET FOR STOCKS MR HABER CONTENDS IT'S A SPECULATIVE ATMOSPHERE WITH PEOPLE THROWING MONEY AT STOCKS AND FUNDS MR HABER IS A PRODUCT OF FIDELITY'S APPRENTICESHIP PROGRAM FOR PORTFOLIO MANAGERS HE BEGAN HIS CLIMB IN 1985 RIGHT AFTER FINISHING HIS MASTER'S IN BUSINESS ADMINISTRATION AT HARVARD BUSINESS SCHOOL HIS FIRST JOB WAS AS AN ANALYST THEN HE RAN TWO SECTOR FUNDS THAT BOUGHT ENERGY AND ELECTRONICS STOCKS BEFORE WORKING HIS WAY UP TO PORTFOLIO ASSISTANT LATE IN 1986 HE WAS NAMED COMANAGER OF THE NEWLY LAUNCHED FIDELITY BALANCED FUND WORKING WITH WELLKNOWN PORTFOLIO CHIEF FRANCIS CABOUR MR HABER STILL DOES A LOT OF HIS OWN RESEARCH AND HIS FINDINGS KEEP PULLING HIM TO EUROPE WHERE HE SAYS I ONLY OWN THE MOST ESOTERIC OF NAMES INDEED OF HIS EUROPEAN EQUITIES NONE TRADE IN THE US AS AMERICAN DEPOSITARY RECEIPTS SVENSKA HANDELSBANKEN A SWEDISH BANK IS ONE OF HIS FAVORITE EUROPEAN HOLDINGS HANDELSBANKEN IS WEATHERING A NATIONAL BANKING CRISIS AND A FALLING SWEDISH KRONA SURPRISINGLY WELL SAYS MR HABER HE BELIEVES IT'S LIKELY TO BE THE ONLY BANK THAT WON'T HAVE TO BE BAILED OUT BY AN EMERGENCY TRUST FUND SET UP BY THE GOVERNMENT ORKLA OF NORWAY A LARGE PRODUCER OF NONDURABLE GOODS IS ANOTHER FAVORITE THE COMPANY HAS MAYBE 90 OF THE SOAPS MARKET IN NORWAY MR HABER SAYS AND ITS STOCK PRICE IS CHEAP RELATIVE TO ITS PERSHARE EARNINGS BY THE END OF 1992 MR HABER HAD SOLD MOST OF HIS US STOCKHOLDINGS BUT THERE IS STILL ONE US SECTOR THAT HE IS KEEN ON NATURAL GAS IN THE WHOLE WORLD THAT'S MY BEST PICK MR HABER SAYS I EVEN OWN FOREIGN STOCKS THAT ARE US NATURAL GAS PLAYS AMONG HIS TOP PICKS ARE THE COMMON STOCK OF ENSERCH CORP AND PENNZOIL CO AND THE CONVERTIBLE PREFERRED OF UNOCAL I WANT TO BE IN THAT GROUP WHERE THE STOCKS HAVEN'T GONE ANYWHERE FOR A WHILE MR HABER SAYS HE NOTES THAT IN 1972 ENERGY STOCKS REPRESENTED 13 OF THE S&P 500 THEN GAINED TO MAKE UP 28 OF THE INDEX BY 1980 ONLY TO FALL OFF AS PERCENTAGE OF THE OVERALL INDEX FROM THERE ENERGY STOCKS NOW REPRESENT ONLY 10 OF THE S&P 500 HE LIKENS THE EARNINGS POTENTIAL OF NATURAL GAS COMPANIES TO THAT ENJOYED BY BREAKFAST CEREAL MAKERS AND OTHER CONSUMER PRODUCT COMPANIES DURING THE 1980S HE BELIEVES THAT NATURAL GAS COMPANIES ARE STARTING TO DEVELOP PRICING POWER THE REASON THERE ARE NOW FEWER COMPANIES THAN A DECADE AGO AND THESE SURVIVORS HAVEN'T NEGLECTED THEIR UNDEVELOPED RESOURCES THESE COMPANIES HAVE HUGE DOMESTIC NATURAL GAS RESERVES AND CAN GET MORE MR HABER SAYS HIS EUROPEAN HOLDINGS INCLUDE A VARIETY OF FIXEDINCOME SECURITIES INCLUDING NOTES ISSUED BY FRANCE AND DENMARK HE RECKONS THAT US TREASURY BONDS A STAPLE OF MOST BALANCED FUNDS OFFER EVEN LESS VALUE THAN US STOCKS I BELIEVE THAT US SHORTTERM INTEREST RATES ARE GOING TO REMAIN AT NORMAL LEVELS MR HABER SAYS AND NORMAL HE HASTILY ADDS MEANS YOU WON'T MAKE ANY MONEY AFTER YOU FIGURE IN THE CORROSIVE EFFECT OF INFLATION THE 1980S BOND RALLY WAS AN ABBERATION MR HABER ARGUES 9307060073 930706 QUARTERLY MUTUAL FUNDS REVIEW DISCORDANT INVESTMENTS CAN SING WITH SHARP RETURNS BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL MUTUAL FUND INVESTORS ARE ALWAYS BEING TOLD TO DIVERSIFY NOT ALL OF THEM DO IT BUT THE STEP CAN BRING BIG REWARDS ABOUT 27 MORE MONEY IN THE POCKET AFTER 20 YEARS BY ONE RECKONING THE TALLY WAS MADE BY T ROWE PRICE ASSOCIATES A BALTIMORE MUTUAL FUND FIRM WHICH RESOLVED TO FIND OUT HOW WELL AN INVESTOR WOULD HAVE DONE WITH A THREEPRONGED PORTFOLIO US STOCKS LEAVENED BY SMALLER AMOUNTS OF FOREIGN AND SMALL STOCKS NOT BADLY AT ALL AS IT TURNED OUT THE THREEWAY MIX BOOSTED RETURNS TO 1251 A YEAR UP FROM 1134 FOR THE STANDARD & POOR'S 500STOCK INDEX OF BIG US COMPANIES ALONE A 20000 INVESTMENT IN THE PORTFOLIO WOULD HAVE GROWN TO 217584 OVER 20 YEARS CONSIDERABLY MORE THAN THE 171241 AN INVESTOR WOULD HAVE REAPED FROM THE S&P 500 BY ITSELF BETTER YET THE SPICEDUP PORTFOLIO ACHIEVED THOSE HIGHER RETURNS WITH ONLY A MINIMAL INCREASE IN RISK IN ONLY TWO OF THE 20 YEARS DID THE PORTFOLIO HAVE STEEPER DECLINES THAN THE S&P 500 MOREOVER THE PORTFOLIO HAD ONLY FOUR DOWN YEARS COMPARED WITH FIVE FOR THE S&P 500 ALONE HOW IS IT POSSIBLE TO GET SUCH A SMOOTH RIDE AFTER ADDING RISKY INVESTMENTS TO A PORTFOLIO THE PORTFOLIO WORKS BECAUSE THE THREE INVESTMENTS ARE TO SOME DEGREE OUT OF SYNC THEIR BOOMS AND BUSTS FREQUENTLY TAKE PLACE AT DIFFERENT TIMES MODERATING THE OVERALL PORTFOLIO'S SWINGS IN VALUE MANY PEOPLE GO ABOUT INVESTING BACKWARDS SAYS STEVEN NORWITZ A VICE PRESIDENT AT T ROWE PRICE IF PEOPLE ARE THINKING ABOUT INVESTING THEY SHOULD THINK ABOUT ASSET ALLOCATION FIRST AND THEN LOOK FOR THE BEST FUND THE PORTFOLIO IN THE PRICE STUDY INVESTED 65 OF ITS ASSETS IN THE S&P 500 20 IN FOREIGN STOCKS AND 15 IN SMALL STOCKS AT THE END OF EACH YEAR THE PORTFOLIO WAS REBALANCED REDISTRIBUTING THE ASSETS TO THE SAME 652015 ALLOTMENT OF BIG FOREIGN AND SMALL STOCKS THE DISTRIBUTION MR NORWITZ SAYS IS APPROPRIATE FOR A CONSERVATIVE STOCK INVESTOR SMALL STOCKS GO INTO THE PORTFOLIO BECAUSE THEY HAVE DELIVERED MUCH BETTER RETURNS THAN THE S&P 500 OVER THE PAST 20 YEARS GAINING 1554 A YEAR AS MEASURED BY THE IBBOTSON US SMALL STOCK INDEX ALL OF THESE RETURN FIGURES INCLUDE PRICE CHANGES AND REINVESTED DIVIDENDS BUT ON OCCASION SMALL STOCKS ENDURE MUCH STEEPER SETBACKS THAN THEIR BLUECHIP BRETHREN FOR INSTANCE IN 1990 THE IBBOTSON INDEX LOST 2156 IN VALUE FAR MORE THAN THE 317 LOSS BY THE S&P 500 AND IN 1987 WHEN THE S&P 500 GAINED 523 SMALL STOCKS ACTUALLY LOST 93 SMALL STOCKS HAVE WIDE SWINGS IN PRICE BECAUSE THEY ARE LESS LIQUID TRADING IN SMALLER VOLUMES WHEN INVESTORS CHANGE THEIR MINDS ABOUT SMALL STOCKS' PROSPECTS MONEY RUSHING INTO OR OUT OF SMALL STOCKS CAN PUSH THEM TO MORE EXTREME LEVELS EITHER UP OR DOWN FOREIGN STOCKS AS REPRESENTED BY THE MORGAN STANLEY CAPITAL INTERNATIONAL INDEX OF EUROPE AUSTRALIA AND THE FAR EAST ALSO SHOW MORE EXTREME SWINGS IN VALUE THAN THE S&P 500 IN ADDITION TO THE NORMAL RISK OF DECLINING STOCK MARKETS FOREIGN INVESTMENTS SUFFER FROM CURRENCY RISK IF THE DOLLAR RISES IN RELATION TO FOREIGN CURRENCIES THE VALUE OF FOREIGN ASSETS FALLS FOR A US INVESTOR ONCE THOSE ASSETS ARE TRANSLATED INTO DOLLARS BUT WHEN RISKY ASSETS GET COMBINED IN MODERATE AMOUNTS WITH A CONSERVATIVE PORTFOLIO OF US STOCKS MANY OF THE EXTREME SWINGS BALANCE EACH OTHER OUT FOR INSTANCE IN 1987 SMALL US STOCKS HAD A ROTTEN YEAR AND BIG US STOCKS HAD A MEDIOCRE ONE BUT FOREIGN STOCKS ROSE NEARLY 25 IN 1981 WHEN THE S&P 500 AND FOREIGN STOCKS DECLINED SMALL US STOCKS HAD A 1388 GAIN FOREIGN STOCKS ARE THE MOST DISSIMILAR IN THEIR BEHAVIOR OF THE THREE INVESTMENTS THEY DO THE MOST CRUCIAL WORK IN COUNTERBALANCING THE UPS AND DOWNS IN THE PORTFOLIO OF COURSE EVERY ONCE IN A WHILE ALL THREE OF THE INVESTMENTS DROP AT THE SAME TIME FOREIGN AND SMALL STOCKS FELL MUCH HARDER THAN BIG STOCKS IN 1990 BUT MOST OF THE TIME FOLDING FOREIGN AND SMALL STOCKS INTO A LARGER PORTFOLIO MAKES FOR A SURPRISINGLY SMOOTH RIDE MOREOVER YOU GOT A BETTER RETURN FROM FOREIGN OR SMALL STOCKS THAN FROM BIG US STOCKS DURING MOST OF THE PAST 20 YEARS ONLY IN 1989 AND 1990 DID THE S&P 500 BEAT BOTH THE FOREIGN AND SMALLSTOCK INDEXES IN SEVEN YEARS FOREIGN STOCKS DID BEST WHILE IN 11 YEARS SMALL STOCKS OUTPERFORMED IF YOU WERE ONLY IN THE S&P 500 INDEX YOU WOULD HAVE MISSED THE BESTPERFORMING SECTOR IN 18 OUT OF 20 YEARS MR NORWITZ SAYS ANOTHER REASON TO INCLUDE FOREIGN STOCKS PARADOXICALLY IS THAT FOR THE PAST FOUR YEARS THEY HAVE FARED FAR WORSE THAN US STOCKS IT'S THE FIRST TIME SINCE MORGAN STANLEY BEGAN COMPILING THE INDEX IN 1970 THAT FOREIGN STOCKS HAVE LAGGED BEHIND THE US MARKET FOR FOUR STRAIGHT YEARS THAT RECORD ARGUES TO SOME PEOPLE THAT FOREIGN STOCKS ARE DUE FOR A TURNAROUND ONE THAT SO FAR THIS YEAR SEEMS TO BE HAPPENING MANY INVESTORS ALSO THINK THAT SMALL STOCKS WILL CONTINUE THEIR TWOYEAR STREAK OF BEATING LARGE STOCKS FOLLOWING A LONG STRETCH WHEN BIG STOCKS OUTPERFORMED BUT FEW DOUBT THAT SMALL STOCKS WILL CONTINUE TO GYRATE MORE WIDELY IN PRICES THAN BIG STOCKS THE CASE FOR DIVERSIFYING AMONG INVESTMENT TYPES ALSO HOLDS TRUE FOR BOND FUNDS THE LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND INDEX OF INVESTMENT GRADE BONDS HAD A TOTAL RETURN OF 945 A YEAR IN THE 20 YEARS THROUGH THE END OF 1992 A PORTFOLIO HOLDING 60 HIGHGRADE BONDS 15 FOREIGN BONDS 15 JUNK BONDS AND 10 CASH WOULD HAVE RETURNED A HIGHER 993 DURING THE PERIOD AND WITH LESS RISK THE DIFFERENT BOND CATEGORIES ARE MORE OUT OF SYNC THAN THE DIFFERENT STOCK CATEGORIES THERE ARE SURPRISINGLY FEW MUTUAL FUNDS THAT PROVIDE ONESTOP SHOPPING FOR A DIVERSIFIED PORTFOLIO OF LARGE SMALL AND FOREIGN STOCKS SOME GLOBAL FUNDS MIX INTERNATIONAL AND DOMESTIC STOCKS BUT THEIR ALLOCATIONS TO DIFFERENT INVESTMENTS CAN VARY WIDELY AND EXPENSES OF SUCH FUNDS TEND TO BE HIGH MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER IDENTIFIED A HANDFUL OF DOMESTIC FUNDS THAT HAD HALF OF THEIR ASSETS IN S&P 500 STOCKS AND ROUGHLY 20 IN FOREIGN STOCKS INCLUDING AARP GROWTH & INCOME IDS STRATEGY EQUITY MERRILL LYNCH FUND FOR TOMORROW PILLAR EQUITY GROWTH AND SELIGMAN COMMON STOCK BUT OFTEN THESE FUNDS HAVE THEIR ASSET DISTRIBUTION AS A MATTER OF SERENDIPITY RATHER THAN INTENTION T ROWE PRICE SPECTRUM GROWTH FUND INVESTS IN OTHER PRICE FUNDS WITH A MANDATED EXPOSURE TO LARGE SMALL AND FOREIGN STOCKS UNLIKE SOME OTHER FUNDS OF FUNDS THE SPECTRUM FUNDS THERE IS ALSO ONE FOR BONDS DO NOT CHARGE AN EXPENSIVE EXTRA LAYER OF FEES PERHAPS THE BEST SOLUTION IS TO ASSEMBLE A DIVERSIFIED PORTFOLIO BY PICKING A LARGESTOCK FUND A SMALLSTOCK FUND AND A FOREIGNSTOCK FUND FOR BOND FUND INVESTORS SOME FUNDS WITH TITLES INCLUDING THE WORDS STRATEGIC INCOME INVEST IN A COMBINATION OF FOREIGN US GOVERNMENT AND JUNK BONDS HOWEVER CARL C ERICSON MANAGER OF COLONIAL STRATEGIC INCOME FUND POINTS OUT THAT NOT ALL FUNDS WITH THE WORD STRATEGIC PURSUE THIS STRATEGY AND SOME FUNDS CAN BECOME HIGHLY CONCENTRATED IN JUNK BONDS LOSING THE BENEFITS OF DIVERSIFICATION OTHER FUNDS THAT PURSUE A DIVERSIFICATION STRATEGY DON'T USE THE WORDS STRATEGIC INCOME IN THEIR NAME WHILE INVESTORS MAY HATE TO LOOK IN THE PROSPECTUS MR ERICSON SAYS THAT'S WHERE THE FUNDS' INVESTMENT STRATEGIES ARE SPELLED OUT 9307060072 930706 DAMON ACCEPTS CORNING'S BUYOUT OFFER VALUED AT 391 MILLION OR 23 A SHARE JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL THE BOARD OF DAMON CORP ACCEPTED A 23ASHARE BUYOUT OFFER FROM CORNING INC AND WITHDREW FROM A DEAL WITH NATIONAL HEALTH LABORATORIES INC AFTER NATIONAL SAID IT WOULDN'T RAISE ITS STANDING 16ASHARE BID CORNING WILL BEGIN A TENDER OFFER WITHIN THE NEXT FEW WEEKS FOR ALL DAMON SHARES OUTSTANDING THE COMPANIES SAID IN A JOINT STATEMENT DAMON CHAIRMAN ROBERT L ROSEN VALUED THE SALE AT 391 MILLION FOR 17 MILLION SHARES ON A FULLY DILUTED BASIS CORNING ALSO WILL ASSUME 160 MILLION OF LONGTERM DEBT AND 29 MILLION IN OTHER COSTS THE AGREEMENT SHARPLY EXPANDS CORNING'S BUSINESS IN CLINICAL LABORATORIES WHICH TYPICALLY TEST BLOOD BODY FLUIDS AND TISSUE FOR PHYSICIANS AND HOSPITALS ONCE A FRAGMENTED BUSINESS WITH SCORES OF SMALL FIRMS IT IS NOW HOTLY COMPETITIVE AND RAPIDLY CONSOLIDATING THIS WILL ENHANCE OUR POSITION IN EVERY REGIONAL MARKET SAID KATHY LITTLETON SPOKESWOMAN FOR THE CORNING NY CONCERN SOME ANALYSTS PREDICT THAT CORNING WILL QUICKLY CONSOLIDATE DAMON INTO ITS METPATH CLINICALLAB NETWORK AND CLOSE SEVERAL DAMON LABS DAMON BASED IN NEEDHAM HEIGHTS MASS RUNS 14 CLINICAL LABS AND CORNING HAS 17 DAVID SACHS AN ANALYST AT FURMAN SELZ INC ESTIMATED THAT THE ACQUISITION WOULD ADD ABOUT FIVE CENTS A SHARE TO CORNING'S EARNINGS NEXT YEAR AND 10 CENTS OR MORE IN 1995 IN THE SECOND QUARTER ENDED JUNE 20 CORNING'S NET WAS 898 MILLION OR 47 CENTS A SHARE ON SALES OF 9068 MILLION IN ADDITION TO OFFERING LAB SERVICES CORNING MAKES SPECIALTY MATERIALS AND COMMUNICATIONS AND CONSUMER PRODUCTS THIS IS A FAIR DEAL FOR DAMON HOLDERS AND VERY POSITIVE FOR CORNING MR SACHS SAID BEFORE FRIDAY'S AGREEMENT DAMON PLAYED HARDBALL WITH CORNING BEHIND THE SCENES SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW ON JUNE 22 DAMON DISCLOSED THAT AN EARLY BIDDER NOW KNOWN TO HAVE BEEN CORNING SOUGHT A POOLINGOFINTERESTS ALLSTOCK TRANSACTION AND WANTED TO COMPLETE THE AGREEMENT IN AUGUST INSTEAD DAMON'S CHAIRMAN STEPPED UP TALKS WITH NATIONAL HEALTH DESPITE AN 11THHOUR OFFER FROM CORNING TO SWITCH TO AN ALLCASH BID AT A SUBSTANTIAL PREMIUM BUT CORNING WOULDN'T PUT A FIRM PRICE ON THE TABLE AND WANTED EXCLUSIVE NEGOTIATIONS WHICH WOULD HAVE LIMITED DAMON'S ABILITY TO CONSIDER COMPETING BIDS DAMON SIGNED THE 16ASHARE DEAL WITH NATIONAL HEALTH FORCING CORNING TO ABANDON ITS CONDITIONS OR RISK LOSING OUT APPARENTLY THAT GOT THEM OFF THE DIME SAID AN INSIDER FAMILIAR WITH THE TALKS THE COMPANIES SAID THAT WHILE CORNING'S OFFER ISN'T CONDITIONED ON FINANCING IT IS DEPENDENT ON AMONG OTHER THINGS A MINIMUM OF 89 MILLION SHARES OR 51 OF DAMON'S STOCK OUTSTANDING BEING TENDERED AND THE EXPIRATION OF A FEDERAL ANTITRUST WAITING PERIOD DAMON SAID THAT TERMINATING ITS PRIOR MERGER AGREEMENT WITH NATIONAL HEALTH WOULD CARRY A 6 MILLION EXPENSE FEE AND ITS EARLIER SEC FILING DISCLOSES THAT MR ROSEN AND TWO OTHER OFFICERS MUST SHARE HALF THEIR PERSONAL STOCK PROFITS WITH NATIONAL IF THEY ACCEPTED A HIGHER BID IN MR ROSEN'S CASE MORE THAN 3 MILLION CORNING SAID IT ALSO WILL PAY TERMINATION AND EXPENSE FEES OF ABOUT 23 MILLION JAMES MAHER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NATIONAL HEALTH LA JOLLA CALIF SAID HE WOULD HAVE BEEN PLEASED TO ACQUIRE DAMON BUT NOT AT THE PREMIUM THAT THE CORNING OFFER REQUIRED 9307060071 930706 COMMODITIES RAINS HURT MIDWEST'S SOYBEANS AND PUSH UP FUTURES BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE DRENCHING RAINS THAT HAVE RAISED THE MISSISSIPPI RIVER OVER ITS BANKS ARE DAMAGING THE MIDWEST'S SOYBEAN CROP AND JACKING UP SOYBEAN FUTURES PRICES AT THE CHICAGO BOARD OF TRADE I'VE NEVER SEEN A SITUATION WHERE RAIN HAS BEEN THE DRIVING FORCE ON A NEGATIVE CROP OUTLOOK SAYS PETER LEAVITT EXECUTIVE VICE PRESIDENT OF WEATHER SERVICES CORP A PRIVATE FORECASTING COMPANY USUALLY IT'S DROUGHT THAT GETS EVERYBODY EXCITED BUT WE HAVEN'T SEEN PLANTING DELAYS AND FLOODING PROBLEMS LIKE THIS IN 30 YEARS SINCE JUNE 15 THE PRICE OF THE ACTIVELY TRADED NOVEMBER SOYBEAN FUTURES CONTRACT HAS RISEN 15 TO 667 A BUSHEL FROM ABOUT 577 A BUSHEL THE PRICE OF THE NOVEMBER CONTRACT GIVES FARMERS A GOOD ESTIMATE OF THE PRICE THEY WILL GET FOR SOYBEANS AFTER THEY HARVEST THEIR CROPS THIS FALL THE NOVEMBER CONTRACT PRICE ALREADY AT ITS HIGHEST LEVEL IN ALMOST THREE YEARS COULD TOP 7 A BUSHEL WITHIN TWO WEEKS ANALYSTS SAY BUT FARMERS IN IMPORTANT SOYBEANGROWING REGIONS PARTICULARLY IOWA AND THE UPPER MIDWEST MAY BE IN NO POSITION TO PROFIT FROM THE UNUSUALLY HIGH PRICE OF SOYBEANS THAT'S BECAUSE MILLIONS OF ACRES OF PRIME SOYBEANGROWING FARMLAND IN THESE AREAS ARE UNDERWATER OR ARE SATURATED DON WITTLER A FARMER IN TALMAGE NEB SAYS HE HAS MANAGED TO PLANT MOST OF HIS 700 ACRES OF SOYBEANS DESPITE HEAVY RAINS HIS NEIGHBORS HE SAYS HAVEN'T BEEN AS LUCKY WE LIVE ABOUT 15 MILES FROM THE MISSOURI RIVER MR WITTLER SAYS PEOPLE ALONG THE MISSOURI ARE JUST INUNDATED JUST FLOODED OUT THERE'S A LOT OF GROUND THERE THAT NEVER GOT PLANTED THE GROUND THAT DID GET PLANTED GOT FLOODED MY HEART GOES OUT TO THOSE PEOPLE THEY'VE FOUGHT ALL YEAR TO GET THAT CROP IN NOW THEY'VE GOT IT IN AND THEY'VE LOST IT IDEALLY ALL SOYBEANS SHOULD BE PLANTED BY LATE JUNE FOR ANY SOYBEAN ACRES PLANTED AFTER JULY 1 FARMERS EXPECT TO LOSE 35 TO 40 OF THEIR PERACRE YIELDS ANALYSTS ESTIMATE THAT MORE THAN THREE MILLION SOYBEAN ACRES ARE NOT YET PLANTED IN IOWA THE NATION'S SECOND LARGEST SOYBEANPRODUCING STATE ONLY ABOUT 88 OF THE CROP WAS PLANTED LAST WEEK COMPARED WITH 100 LAST YEAR AT THIS TIME AND 100 AS A FIVEYEAR AVERAGE FOR THE END OF JUNE TERRY VAN AHN GRAIN MERCHANDISER FOR WEST BEND ELEVATOR CO A GRAIN ELEVATOR THAT HANDLES SOYBEANS FOR ABOUT 2200 FARMERS IN NORTHEAST IOWA SAYS SOYBEAN PRODUCTION IN HIS REGION WILL BE FAR LOWER THAN NORMAL THIS YEAR ABOUT 20 OF THE ANTICIPATED SOYBEAN ACRES IN OUR TRADE TERRITORY ARE NOT GOING TO BE PLANTED WITH SOYBEANS NOW HE SAYS THERE'S A LOT OF RIVER GROUND THAT HAS BEEN FLOODED ALL SPRING AND OTHER AREAS THAT YOU JUST CAN'T GET TO YOU'VE GOT A LOT OF ACRES PLANTED WITH BEANS THAT AREN'T SPROUTING YET THE PLANTS THAT ARE UP AREN'T EVEN TOENAIL HIGH THIS YEAR'S PARTICULAR PROBLEM IS THAT PRECIPITATION BOTH SNOW AND RAIN HAS BEEN UNUSUALLY HEAVY FOR A SUSTAINED PERIOD OF ABOUT EIGHT MONTHS IOWA FOR INSTANCE HAS RECEIVED MORE THAN 27 INCHES OF PRECIPITATION SINCE NOVEMBER THAT MAKES THE EIGHTMONTH PERIOD THE WETTEST IN THE STATE'S HISTORY YOU CAN HANDLE A WET MONTH OR TWO BECAUSE IT CAN BE ABSORBED INTO THE SOIL AND THE WATER TABLE MR LEAVITT SAYS BUT WHEN YOU HAVE SUSTAINED RAIN FOR MONTHS AND MONTHS THE SUBSOIL BECOMES SATURATED YOU GET PONDING OF WATER IN THE FIELDS ABOUT THREE WEEKS AGO GRAIN TRADERS AT THE CBOT BEGAN TAKING STOCK OF THE SEVERE PLANTING PROBLEMS SINCE THEN THE CBOT'S SOYBEAN PIT HAS WITNESSED SEVERAL STRONG SINGLEDAY PRICE RALLIES NOW THE CLIMATE ON THE EXCHANGE'S GRAINTRADING FLOOR IS OVERWHELMINGLY BULLISH LAST WEEK TRADERS PRACTICALLY IGNORED A US AGRICULTURE DEPARTMENT REPORT THAT ESTIMATED FARMERS HAVE PLANTED OR INTEND TO PLANT 616 MILLION ACRES OF SOYBEANS FAR MORE THAN MANY IN THE GRAIN INDUSTRY WERE EXPECTING IN MARCH THE AGRICULTURE DEPARTMENT HAD ESTIMATED FARMERS WOULD PLANT ONLY 593 MILLION ACRES IT SAID THE INCREASE FROM MARCH TO JUNE WAS DUE TO FARMERS SHIFTING CORN ACRES TO SOYBEANS BUT MANY IN THE GRAIN INDUSTRY ARE SKEPTICAL OF THESE LATEST AGRICULTURE DEPARTMENT FIGURES THIS IS WHERE NUMBERS GET MISLEADING MR VAN AHN SAYS SOMETIMES FARMERS SAY THEY'RE 100 PLANTED MEANING THEY'RE THROUGH PLANTING WHEN THEY ACTUALLY HAVE PLANTED 20 LESS THAN THEY INTENDED TO OR MAYBE THEY TELL THE USDA HOW MANY ACRES THEY INTENDED TO PLANT AND THEN AREN'T ABLE TO PLANT ALL THOSE ACRES RICHARD LOEWY PRESIDENT OF AGRESOURCE CO CHICAGO ESTIMATES THAT FARMERS WILL END UP PLANTING TWO MILLION TO 25 MILLION ACRES LESS THAN THEY INTENDED TO PLANT SO WE'LL END UP PRETTY CLOSE TO THE USDA'S MARCH FIGURE WHICH WAS 593 MILLION ACRES MR LOEWY SAYS BUT ALL THOSE CROPS WON'T DO WELL YOUR YIELD LOSS DUE TO MOISTURE WILL BE AS MUCH AS 50 SO THAT MEANS DIMINISHED PRODUCTION ALSO TROUBLING ANALYSTS AND FORECASTERS SAY IS THE POSSIBILITY OF HOT AND DRY WEATHER LATER IN THE SUMMER A HEAT WAVE IN JULY OR AUGUST COULD BE ESPECIALLY DEVASTATING THIS YEAR AND COULD PUSH SOYBEAN FUTURES PRICES UP SHARPLY BECAUSE OF THE WEAK DEVELOP MENT OF RAINDRENCHED SOYBEAN PLANTS THE CROP HAS SHALLOW ROOTS IN SOIL WHERE THE NUTRIENTS HAVE BEEN LEACHED OUT MR LEAVITT SAYS WERE IT TO GET HOT AND DRY FOR ANY EXTENDED PERIOD THE CROP WOULD BE PRETTY VULNERABLE TO THE HEAT THE WET WEATHER HASN'T AFFECTED CORN PLANTINGS OR CORN FUTURES PRICES AS STRONGLY AS SOYBEANS FARMERS SEEM TO HAVE HAD MORE LUCK PLANTING CORN WHICH IS USUALLY SEEDED EARLIER NEVERTHELESS MOST ANALYSTS EXPECT SUBSTANTIALLY LESS CORN PRODUCTION THIS YEAR THAN LAST YEAR'S RECORD 95 BILLION BUSHEL CROP AT THE CBOT THE STRENGTH OF SOYBEAN FUTURES PRICES HAS SPILLED OVER INTO THE CORN FUTURES PIT AS WELL THE PRICE OF THE ACTIVELY TRADED DECEMBER CORN CONTRACT SETTLED AT 24875 A BUSHEL FRIDAY HIGHER THAN NORMAL FOR THIS TIME OF THE YEAR TRADERS AT THE EXCHANGE WILL WATCH WEATHER FORECASTS ESPECIALLY CLOSELY THIS WEEK THE WEEK FOLLOWING THE FOURTH OF JULY IS REGARDED AS THE BELLWETHER WEEK FOR US AGRICULTURAL MARKETS FOR THE PAST FEW SUMMERS IT HAS BEEN THE PERIOD THAT ESTABLISHED THE DIRECTION OF GRAIN PRICES FOR THE REMAINDER OF THE GROWING SEASON 9307060070 930706 QUARTERLY MUTUAL FUNDS REVIEW FIDELITY MAGELLAN TOPS BESTSELLER LIST NEW YORK FIDELITY MAGELLAN FUND THE US'S LARGEST STOCK FUND ALSO HAS BEEN THIS YEAR'S BESTSELLING MUTUAL FUND ACCORDING TO CHICAGO'S FINANCIAL RESEARCH CORP MAGELLAN PULLED IN MORE THAN 2 BILLION OF NEW CASH IN THE FIRST FIVE MONTHS OF 1993 MAGELLAN'S ASSETS NOW EXCEED 27 BILLION OTHER TOPSELLING FUNDS INCLUDE JANUS FUND FIDELITY ASSET MANAGER INVESTMENT COMPANY OF AMERICA AND INCOME FUND OF AMERICA AMONG FUND COMPANIES FIDELITY INVESTMENTS HAD THE LARGEST STOCK AND BOND FUND SALES IN THIS YEAR'S FIRST FIVE MONTHS FOLLOWED BY VANGUARD GROUP CAPITAL RESEARCH & MANAGEMENT PUTNAM INVESTMENTS AND FRANKLIN RESOURCES FINANCIAL RESEARCH CORP FIGURES THAT THESE FIVE FUND COMPANIES TOGETHER PULLED IN 43 BILLION OR 46 OF THE MONEY ATTRACTED BY ALL STOCK AND BOND MUTUAL FUNDS 9307060069 930706 WORLD MARKETS TOKYO SHARE PRICES WAFFLE ON POLITICAL CONCERNS MOST EUROPEAN STOCKS FALL AS INVESTORS VACATION A WALL STREET JOURNAL NEWS ROUNDUP TOKYO SHARES ENDED LITTLE CHANGED MONDAY IN THE LOWEST VOLUME IN MORE THAN SIX MONTHS AS INVESTORS SAW LITTLE CHANCE OF SHARP MARKET MOVES EITHER UP OR DOWN AHEAD OF JAPAN'S JULY 18 GENERAL ELECTION TRADING ALSO WAS QUIET IN EUROPE WHERE SUMMER VACATIONS LEFT MANY BOURSES WITH FEW INVESTORS LONDON EQUITIES DROPPED SHARPLY FRANKFURT STOCKS FELL BROADLY WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10508 DOWN 022 REFLECTING DROPS IN ASIA/PACIFIC AND EUROPEAN MARKETS AND NO CHANGE IN THE AMERICAS CASINO STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 15862 UP 309 OR 199 WITH CASINO MUNICIPAL DE CANNES OF FRANCE POSTING AN 1136 GAIN IN ITS LOCAL CURRENCY SHIPBUILDING STOCKS TRAILED AT 10272 DOWN 116 OR 112 WITH SASEBO HEAVY INDUSTRIES OF JAPAN SLIDING 267 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SLUMPED 30315 POINTS FRIDAY EDGED UP 160 TO 1962306 ON TUESDAY THE NIKKEI ROSE 15442 POINTS TO CLOSE THE MORNING SESSION AT 1977748 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 150 MILLION SHARES DOWN FROM 2268 MILLION SHARES FRIDAY AND THE LOWEST TURNOVER SINCE JAN 18 WHEN 147 MILLION SHARES CHANGED HANDS LOSERS OUTNUMBERED GAINERS 576402 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH LOST 12 POINTS FRIDAY SLIPPED 061 TO 158542 THOUGH NERVOUSNESS ABOUT THE COMING PARLIAMENTARY BALLOTING WAS THE MAIN FACTOR MAKING INVESTORS RELUCTANT TO STAKE OUT NEW POSITIONS THE LACK OF ACTIVITY ALSO WAS INFLUENCED BY RAINY WEATHER MONDAY IN TOKYO AND THE INDEPENDENCE DAY HOLIDAY IN THE US THE NIKKEI BARELY BUDGED TRADING WITHIN A 130POINT RANGE FOR THE DAY THE US DOLLAR'S REBOUND AGAINST THE YEN LEFT SOME EXPORTERS' SHARES HIGHER TOKYO PARTICIPANTS GENERALLY WERE CONFIDENT THAT THE ELECTION RESULTS WOULDN'T RESULT IN DRASTIC CHANGES IN JAPAN'S BUREAUCRACYDOMINATED GOVERNMENT BUT UNCERTAINTY ABOUT WHAT WILL FOLLOW THE COLLAPSE OF THE LIBERAL DEMOCRATIC PARTY'S DOMINANCE WAS EXPECTED TO KEEP INVESTORS ON TENTERHOOKS PARTICIPANTS ALSO DIDN'T ANTICIPATE ANY GYRATIONS IN STOCK PRICES TO SPRING FROM THE SUMMIT OF LEADERS OF THE GROUP OF SEVEN INDUSTRIAL NATIONS THAT STARTS WEDNESDAY IN TOKYO IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX LOST 192 POINTS TO 28385 THE FT 30STOCK INDEX GAVE UP 126 POINTS TO 22253 VOLUME WAS A PALTRY 384 MILLION SHARES COMPARED WITH 6387 MILLION SHARES FRIDAY TURNOVER SHRANK TO A FINANCIAL BREAKEVEN POINT FOR THE EXCHANGE THOUGH THE SCARCITY OF INVESTORS WASN'T SURPRISING GIVEN THAT YESTERDAY WAS THE NEW ACCOUNT PERIOD'S FIRST DAY AND WALL STREET'S HOLIDAY CLOSURE FOLLOWED A SLIDE IN PRICES THERE FRIDAY FUTURES TRADING ALSO DAMPED SENTIMENT ON THE LONDON BOURSE AS THE PRICE OF THE SEPTEMBER STOCKINDEX FUTURES CONTRACT ON FRIDAY LOST ITS PREMIUM TO THE STOCK MARKET MOREOVER SEVEN INDEPENDENT FORECASTERS APPOINTED BY BRITAIN'S CHANCELLOR OF THE EXCHEQUER OR TREASURY CHIEF SAID THEY STILL SEE A SLOW AND PATCHY ECONOMIC UPTURN THAT REMAINS AT RISK FROM A SLOWDOWN IN CONTINENTAL EUROPE IN FRANKFURT THE DAX 30STOCK INDEX WHICH LOST 882 POINTS FRIDAY FELL 564 POINTS TO 169217 WITH 23 OF THE DAX ISSUES FALLING AND FIVE RISING LITTLE ECONOMIC OR CORPORATE NEWS EMERGED TO MOVE THE MARKET VOLKSWAGEN SHARES SANK 450 MARKS OR 12 TO 35580 MARKS 20996 FOLLOWING NEWS REPORTS THAT GERMAN PROSECUTORS FOUND GENERAL MOTORS DOCUMENTS IN A WIESBADEN HOUSE FORMERLY OCCUPIED BY TWO EMPLOYEES WHO FOLLOWED J IGNACIO LOPEZ DE ARRIORTUA FORMER PURCHASING BOSS AT THE US AUTO MAKER TO VW PROSECUTORS SAID THE DOCUMENTS BOLSTERED ACCUSATIONS BY GM'S ADAM OPEL UNIT IN GERMANY THAT A GROUP OF FORMER OPEL AND GM EMPLOYEES TOOK CONFIDENTIAL MATERIALS WHEN THEY MOVED TO VW IN MARCH MR LOPEZ'S DEPARTURE HAS SPARKED A LEGAL BATTLE BETWEEN THE TWO AUTO MAKERS VW DENIED ANY INVOLVEMENT WITH THE DOCUMENTS IN PARIS STOCKS EXTENDED THEIR LOSSES IN EXTREMELY THIN TRADING AS THE MARKET CONTINUED TO CONSOLIDATE FOLLOWING GAINS OF RECENT WEEKS THE US MARKET HOLIDAY FOR THE FOURTH OF JULY DRAINED MUCH LIQUIDITY FROM THE PARIS EXCHANGE AND LEFT IT WITH LITTLE DIRECTION AMSTERDAM STOCKS DRIFTED LOWER FOLLOWING THE LONDON TREND AS BUYERS KEPT A LOW PROFILE AND VOLUME WAS LIGHT WHILE A STEADY DOLLAR DIDN'T OFFER ANY INCENTIVES TO BUY OR SELL MANY PARTICIPANTS ALSO WERE AWAITING THE G7 SUMMIT IN JAPAN BUT IN MILAN STOCKS FIRMED IN ACTIVE TRADING AS AN ITALIAN LABOR ACCORD REACHED OVER THE WEEKEND BOOSTED MARKET SENTIMENT PRICES AT ONE POINT JUMPED ABOUT 2 ON THE AGREEMENT BY EMPLOYERS UNIONS AND THE GOVERNMENT ON NEW RULES FOR COLLECTIVE BARGAINING ON WAGES PRICES SAGGED A BIT TOWARD MIDSESSION IN MILD PROFITTAKING ON DEFLATED HOPES THAT THE LABOR ACCORD WOULD LEAD TO AN IMMEDIATE ITALIAN INTERESTRATE CUT BY THE END OF THE SESSION MANY PRICES GAINED BACK MOST OF THE GROUND THEY LOST THE LANDMARK AGREEMENT AMONG EFFORTS TO CONTAIN LABOR COSTS AND INFLATION AND ALLOW INTERESTRATE CUTS TO AID ECONOMIC RECOVERY GIVES EMPLOYERS MORE FLEXIBILITY IN HIRING AND PREVENTS WAGES FROM RISING MORE THAN THE INFLATION RATE MADRID SHARES FELL PRESSURED BY POLITICAL UNCERTAINTIES AND TURNOVER WAS THIN BECAUSE OF THE WALL STREET HOLIDAY AND THE EXODUS OF SPANISH INVESTORS FOR SUMMER VACATIONS SPAIN'S ACTING SOCIALIST PRIME MINISTER FELIPE GONZALEZ HAS BEEN NEGOTIATING WITH REGIONAL PARTIES TO SECURE SUPPORT FOR HIS INVESTITURE VOTE FRIDAY YESTERDAY MR GONZALEZ HELD TALKS WITH UNION LEADERS AND WAS TO MEET WITH THE EMPLOYERS ASSOCIATION IN A BID TO OPEN TALKS ON A LABOR AGREEMENT IN STOCKHOLM SHARES DECLINED AS INVESTORS CONTINUED TO FOCUS ON THE BANKING SECTOR WHICH ADVANCED ON EXPECTATIONS FOR IMPROVED EARNINGS WHILE MOST OTHER BLUE CHIPS RETREATED IN TRADING THINNED BY SUMMER VACATIONS BRUSSELS STOCKS FINISHED MIXED TO LOWER ON CONTINUED PROFITTAKING FOLLOWING LAST WEEK'S STRONG GAINS IN SYDNEY DESPITE HEAVY BUYING OF GOLD ISSUES MOST NONMINING STOCKS WEAKENED FOLLOWING THE LEAD OF LOWER STOCK PRICES FRIDAY IN THE US SINGAPORE STOCKS MOSTLY ROSE ON LASTMINUTE GAINS HONG KONG SHARES FELL DESPITE INITIAL BULLISHNESS ON NEWS THAT A TOP BRITISH OFFICIAL WILL VISIT BEIJING LATER THIS WEEK PROMPTED BY POSITIVE SIGNS IN SINOBRITISH TALKS ABOUT THE COLONY'S ELECTORAL PROCESS TAIPEI PRICES EASED AS LATE SELLING PRESSURE ERODED AN EARLY REBOUND SEOUL SHARES LED BY BIG BLUECHIP MANUFACTURERS ROSE ON EXPECTATIONS THAT MONEY CONSTRAINTS ON INSTITUTIONAL INVESTORS WILL DIMINISH AS INTEREST RATES HAVE RECENTLY STABILIZED 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 9307060068 930706 FINANCING BUSINESS MASCOTECH INC MASCOTECH INC FORMERLY MASCO INDUSTRIES INC SAID IT SOLD 200 MILLION OF A CONVERTIBLE PREFERRED STOCK MASCOTECH SAID THE FOURYEAR SECURITIES CALLED DIVIDEND ENHANCED CONVERTIBLE STOCK WERE PRICED AT 20 A SHARE AND ARE ENTITLED TO A 6 DIVIDEND EACH SHARE IS CONVERTIBLE INTO 0806 SHARE OF MASCOTECH COMMON STOCK MASCOTECH OF TAYLOR MICH SAID NET PROCEEDS FROM THE OFFERING WILL BE USED TO PAY DOWN EXISTING DEBT THE COMPANY MAKES TRANSPORTATIONRELATED AND SPECIALTY PRODUCTS 9307060067 930706 BUSINESS BRIEF GENERAL CABLE CORP ARRANGEMENTS COMPLETED FOR 3YEAR CREDIT FACILITY GENERAL CABLE CORP HIGHLAND HEIGHTS KY SAID IT COMPLETED ARRANGEMENTS FOR A 65 MILLION THREEYEAR CREDIT FACILITY BACKED BY ITS RECEIVABLES PROCEEDS WILL BE USED TO REPAY A 391 MILLION DEBT TO THE PENN CENTRAL CORP AND PROVIDE WORKING CAPITAL FOR GENERAL CABLE'S WIRE AND CABLE BUSINESSES THE FACILITY SECURED BY GENERAL CABLE'S ACCOUNTS RECEIVABLES IS BEING PROVIDED BY PNC BANK OHIO NA AND BANKAMERICA BUSINESS CREDIT GENERAL CABLE A SPINOFF OF TROUBLED UNITS OF PENN CENTRAL CORP MAKES AND MARKETS WIRE AND CABLE FOR CONSTRUCTION CONSUMER AUTOMOTIVE ORIGINAL EQUIPMENT MANUFACTURE AND TELECOMMUNICATIONS MARKETS 9307060066 930706 QUARTERLY MUTUAL FUNDS REVIEW FUND COMPANIES OFFER INVESTORS FREE ADVICE BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHAT DO YOUR INLAWS YOUR NEIGHBORS AND MUTUAL FUND COMPANIES HAVE IN COMMON THEY ALL WANT TO GIVE YOU FREE ADVICE IN THE CASE OF THE MUTUAL FUND COMPANIES AT LEAST SOME OF THE ADVICE IS WORTH GETTING WITH NOVICE INVESTORS FLOCKING TO MUTUAL FUNDS MANY FUND COMPANIES HAVE MADE A MAJOR PUSH IN RECENT YEARS TO DEVELOP EDUCATIONAL MATERIALS SUITABLE FOR THESE NEOPHYTE INVESTORS THE FLOOD OF NEW BROCHURES HAS A LOT TO DO WITH MUTUAL FUND MANIA SAYS STEVEN AMES AN ANNAPOLIS MD FINANCIAL PLANNER MUTUAL FUNDS WANT TO COVER THEMSELVES BECAUSE THEY KNOW A LOT OF UNSOPHISTICATED INVESTORS ARE GETTING INTO THE MARKET FREE PAMPHLETS ON BASIC INVESTMENT PRINCIPLES ARE AVAILABLE FROM MAJOR FUND GROUPS INCLUDING AARP INVESTMENT PROGRAM AMERICAN CAPITAL MANAGEMENT & RESEARCH FIDELITY INVESTMENTS FRANKLIN RESOURCES OPPENHEIMER MANAGEMENT CORP T ROWE PRICE ASSOCIATES AND SCUDDER STEVENS & CLARK MOST FUND COMPANIES HAVE 800 TELEPHONE NUMBERS WHICH CAN BE LOCATED BY CALLING TOLLFREE DIRECTORY INFORMATION AT 18005551212 AMONG THE BETTER PAMPHLETS ARE DREYFUS CORP'S 1993 GUIDE TO PERSONAL FINANCIAL PLANNING PIONEER GROUP'S RETIREMENT WORKSHEET CHARLES SCHWAB'S GUIDE TO INVESTING IN MUTUAL FUNDS AND VANGUARD GROUP'S SOME PLAIN TALK ABOUT INDEXING WANT TO KNOW HOW MUCH IT WILL COST TO SEND YOUNG HENRY TO HARVARD TRY SCUDDER'S CARDBOARD CALCULATOR WHICH WORKS SORT OF LIKE A SLIDE RULE PLUG IN YOUR KID'S AGE PICK AN INFLATION RATE AND THE CARDBOARD CALCULATOR WILL TELL YOU HOW MUCH YOU'LL NEED WHEN HANK HITS 18 TURN OVER THE CALCULATOR AND YOU CAN FIGURE OUT MUCH YOU NEED TO SAVE EACH WEEK TO REACH THAT PRINCELY SUM SCUDDER HAS PUT ITS CALCULATOR ON COMPUTER DISK BUT THAT COSTS 5 BLANCHARD GROUP OF FUNDS FRANKLIN AND JOHN HANCOCK MUTUAL FUNDS ARE ALSO CRAZY ABOUT CARDBOARD BLANCHARD'S CALCULATOR TELLS YOU WHAT WILL HAPPEN TO YOUR BONDS GIVEN CERTAIN INTEREST RATE MOVES FRANKLIN'S CALCULATOR LETS YOU COMPARE TAXABLE AND TAXFREE YIELDS AND HANCOCK'S CALCULATOR TELLS YOU HOW MUCH YOU'LL ACCUMULATE PRESUMING CERTAIN MONTHLY INVESTMENTS JONES & BABSON ESCHEWS CARDBOARD IN FAVOR OF A FREE PIECE OF SOFTWARE THOUGH LARGELY PROMOTIONAL THE SOFTWARE DOES INCLUDE AN INVESTMENT PLANNER WHICH LETS YOU FIGURE OUT NOW MUCH YOU NEED TO SAVE TO REACH A PARTICULAR FINANCIAL GOAL AND HOW LARGE YOUR PORTFOLIO WILL GROW PRESUMING CERTAIN MONTHLY INVESTMENTS T ROWE PRICE PROVIDES POSSIBLY THE MOST THOROUGH RETIREMENT PLANNING KITSAND THE MOST TIME CONSUMING A SPOKESMAN SAYS CUSTOMER SURVEYS INDICATE THAT THE KITS TAKE FROM AN HOUR TO 90 MINUTES TO COMPLETE THE T ROWE PRICE RETIREMENT PLANNING PACKAGE IS INVOLVED CONCEDES KENNETH KLEGON A FINANCIAL PLANNER IN LANSING MICH BUT I'VE HAD CLIENTS WHO HAVE GOTTEN IT AND THEY THINK IT'S PRETTY GOOD FREE GUIDES TO CALCULATING YOUR TAXABLE GAINS AND LOSSES ARE AVAILABLE FROM FIDELITY SCUDDER STEINROE MUTUAL FUNDS AND STRONG FUNDS VANGUARD OFFERS A MORE DETAILED 112PAGE TAX GUIDE BUT FOR THAT YOU HAVE TO PONY UP 5 IF YOU CAN'T FIGURE OUT HOW TO DIVVY UP YOUR MONEY AMONG STOCKS BONDS AND MONEY MARKET FUNDS CONSIDER THE FREE ASSET ALLOCATION SERVICES OFFERED BY DREYFUS FIDELITY AND STEINROE TO GET DREYFUS'S FUND SUGGESTIONS YOU HAVE TO MAIL A QUESTIONNAIRE BACK TO THE NEW YORK FUND COMPANY WITH FIDELITY'S SERVICE YOU SCORE YOURSELF BASED ON YOUR ANSWERS TO 12 QUESTIONS ABOUT ISSUES SUCH AS YOUR CURRENT FINANCIAL SITUATION WHEN YOU'LL NEED YOUR INVESTMENT MONEY AND WHAT YOUR ATTITUDE IS TOWARD RISK ANYBODY CAN GET AN INITIAL SET OF FUND RECOMMENDATIONS FROM STEINROE BY FILLING OUT THE FIRM'S QUESTIONNAIRE BUT IF YOU WANT TO GET THE BENEFIT OF THE FIRM'S ONGOING ASSET ALLOCATION ADVICE YOU HAVE TO INVEST AT LEAST 50000 IN STEINROE MUTUAL FUNDS FREE AND LOWCOST INFORMATION ABOUT MUTUAL FUNDS IS ALSO AVAILABLE FROM THE INVESTMENT COMPANY INSTITUTE THE WASHINGTON TRADE GROUP FOR THE FUND INDUSTRY AND THE MUTUAL FUND EDUCATION ALLIANCE A KANSAS CITY MO GROUP SPONSORED BY FUNDS THAT CHARGE LITTLE OR NOTHING IN SALES COMMISSIONS MUTUAL FUND COMPANIES HAVE REALIZED THAT THEY'LL ENDEAR THEMSELVES TO CLIENTS IF THEY PROVIDE GOOD INFORMATION SAYS MR KLEGON BUT GIVING AWAY FREEBIES DOESN'T ALWAYS HAVE THE INTENDED EFFECT FOR PROOF CONSIDER THE CASE OF THE NODDINGS CONVERTIBLE STRATEGIES FUND WHICH WAS LIQUIDATED LAST YEAR THE FUND NEVER GOT VERY BIG DESPITE AN UNUSUAL APPROACH TO ATTRACTING INVESTORS ADOPTED BY FUND MANAGER THOMAS NODDINGS MR NODDINGS WON'T TALK ABOUT HIS PROMOTIONAL EFFORT I DON'T HAVE ANY COMMENT ON THAT HE SAYS WHAT WAS THE PROMOTIONAL EFFORT A PERSON IN THE INVESTMENT COMMUNITY RECALLS THE FOLLOWING DETAILS AT A SEMINAR MR NODDINGS CONDUCTED HE GAVE AWAY A SINGLE SHARE OF HIS FUND TO EACH OF THE SEMINAR'S PARTICIPANTS MR NODDINGS APPARENTLY HOPED THAT THE PARTICIPANTS WOULD ADD TO THEIR NEWLY ESTABLISHED ACCOUNTS AND EVENTUALLY BECOME SIGNIFICANT INVESTORS IN THE FUND BUT IT DIDN'T WORK OUT THAT WAY WITHIN DAYS OF THE SEMINAR THE FUND SUFFERED A FLURRY OF REDEMPTIONS AS MANY OF THE SEMINAR PARTICIPANTS CASHED IN THEIR FREE SHARES 9307060065 930706 SUN MICROSYSTEMS SUBSIDIARY MOUNTAIN VIEW CALIF SUN MICROSYSTEMS INC SAID IT FORMED A SUBSIDIARY CALLED SUNSERVICE INC TO PROVIDE CUSTOMER SUPPORT FOR ITS COMPUTER WORKSTATIONS AND OTHER PRODUCTS THE MOVE IS PART OF SUN'S STRATEGY TO SPLIT OFF DISTINCT BUSINESSES INTO AUTONOMOUS UNITS 9307060064 930706 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED EIGHT NEW LISTINGS INCLUDING SEVEN INITIAL PUBLIC OFFERINGS THE AMERICAN STOCK EXCHANGE ANNOUNCED FOUR INITIAL OFFERINGS AND THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ANNOUNCED 19 NEW LISTINGS INCLUDING 15 INITIAL PUBLIC OFFERINGS THE BIG BOARD SAID IT BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS CARRGOTTSTEIN FOODS CO ANCHORAGE ALASKA A FOOD AND DRUG RETAILER UNDER CGF EK CHOR CHINA MOTORCYCLE CO HONG KONG A HOLDING COMPANY WHICH OWNS INTEREST IN AND MANAGES FOUR SINOFOREIGN EQUITY JOINT VENTURES IN CHINA UNDER EKC ESPIRITO SANTO FINANCIAL HOLDINGS SA LUXEMBOURG A FINANCIAL SERVICES HOLDING COMPANY UNDER ESF LEVITZ FURNITURE INC BOCA RATON FLA A FURNITURE RETAILER UNDER LFI AND SUN HEALTHCARE GROUP INC ALBUQUERQUE NM A LONGTERM HEALTHCARE PROVIDER UNDER SHG THE BIG BOARD BEGAN TRADING THE FOLLOWING AMERICAN DEPOSITARY SHARES OF GRUPO RADIO CENTRO SA DE CV MEXICO CITY A RADIO BROADCASTING COMPANY UNDER RC AND YPF SOCIEDAD ANONIMA BUENOS AIRES ARGENTINA AN OIL AND GAS EXPLORATION COMPANY UNDER YPF THE BIG BOARD ALSO BEGAN TRADING CSS INDUSTRIES INC PHILADELPHIA A MAKER OF FUNCTIONAL AND DECORATIVE PAPER PRODUCTS UNDER CSS WHICH PREVIOUSLY TRADED ON THE AMERICAN STOCK EXCHANGE THE AMERICAN STOCK EXCHANGE BEGAN TRADING THE FOLLOWING SECURITIES CAPITAL REALTY INVESTORS TAX EXEMPT FUND LIMITED PARTNERSHIP SERIES I UNDER CRA CAPITAL REALTY INVESTORS TAX EXEMPT FUND LIMITED PARTNERSHIP SERIES II UNDER CRB AND CAPITAL REALTY INVESTORS TAX EXEMPT FUND III LIMITED PARTNERSHIP AND CRL THE SECURITIES ARE ISSUED BY TWO PARTNERSHIPS ORIGINALLY SPONSORED IN 1986 AND 1987 BY THE ROCKVILLE MDBASED REAL ESTATE INVESTMENT FIRM CRI INC THE AMEX BEGAN TRADING THE AMERICAN DEPOSITARY SHARES OF GRUPO SIMEC SA DE CV GUADALAJARA JALISCO MEXICO A MINIMILL STEEL PRODUCER UNDER SIM THE AMEX BEGAN TRADING US DOLLAR/DEUTSCHE MARK EXCHANGE RATE CURRENCY WARRANTS UNDER GDMWS THE AMEX WILL BEGIN TRADING OPTIONS ON NAVISTAR INTERNATIONAL CORP AND BALLY MANUFACTURING CORP ON JULY 9 NATIONAL ASSOCIATION OF SECURITIES DEALERS INC ADDED THE FOLLOWING INITIAL PUBLIC OFFERINGS TO ITS NASDAQ NATIONAL MARKET ELECTROGLAS INC SANTA CLARA CALIF A MAKER OF AUTOMATIC WAFER PROBING EQUIPMENT FOR USE IN THE FABRICATION OF SEMICONDUCTOR DEVICES UNDER EGLS LOTTERY ENTERPRISES INC SAN DIEGO A MAKER OF VENDING TERMINALS FOR THE RETAIL SALE OF INSTANTWINNING LOTTERY TICKETS UNDER LOTO FFY FINANCIAL CORP YOUNGSTOWN OHIO A COMPANY ORGANIZED TO ACQUIRE ALL THE STOCK OUTSTANDING OF FIRST FEDERAL SAVINGS BANK OF YOUNGSTOWN UPON ITS CONVERSION FROM MUTUAL TO STOCK FORM UNDER FFYF T R FINANCIAL CORP GARDEN CITY NY A COMPANY ORGANIZED TO ACQUIRE THE STOCK OUTSTANDING OF ROOSEVELT SAVINGS BANK UPON ITS CONVERSION FROM MUTUAL TO STOCK FORM UNDER ROSE SHILOH INDUSTRIES INC MANSFIELD OHIO A STEEL PROCESSING FIRM UNDER SHLO ABT BUILDING PRODUCTS CORP TROY MICH A SPECIALTY BUILDING PRODUCTS CONCERN UNDER ABTC DELTA AND PINE LAND CO SCOTT MISS A MAKER OF COTTON SEED UNDER COTN HUNTCO INC CHESTERFIELD MO A STEEL PROCESSING FIRM UNDER HUNT INDUSTRIAL SCI THE FOLLOWING ISSUES MOVED UP FROM THE NASDAQ SMALL CAP MARKET TO THE NATIONAL MARKET SYSTEM BLYTH HOLDINGS INC FOSTER CITY CALIF A DEVELOPER OF TOOLS FOR ENTERPRISEWIDE COMPUTING UNDER BLYH BAILEY CORP SEABROOK NH A MAKER OF PLASTIC PRODUCTS FOR SALE TO DOMESTIC AUTOMOBILE MANUFACTURERS UNDER BAIB AND GENERAL COMMUNICATION INC ANCHORAGE ALASKA A LONG DISTANCE TELECOMMUNICATIONS SERVICES CONCERN UNDER GNCMA THE FOLLOWING ISSUE FORMERLY TRADED ON THE PINK SHEETS WERE APPROVED FOR DESIGNATION ON THE NATIONAL MARKET SYSTEM GEORGE MASON BANKSHARES INC FAIRFAX VA A BANK HOLDING COMPANY UNDER GMBS THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING OPTIONS ON NATIONAL STEEL CORP CASINO MAGIC CORP BJ SERVICES CO NAVISTAR INTERNATIONAL CORP BALLY MANUFACTURING CORP AND BANKERS LIFE HOLDING CORP THE PACIFIC STOCK EXCHANGE WILL BEGIN TRADING OPTIONS ON AGNICOEAGLE MINES LTD JULY 9 9307060063 930706 QUARTERLY MUTUAL FUNDS REVIEW SHORTERTERM MATURITIES COULD SHORTCHANGE RETURNS BY MICHAEL A POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WORRIED THAT INTEREST RATES ARE HEADED HIGHER MUTUAL FUND INVESTORS ARE FLOCKING TO SHORTMATURITY BONDS WHOSE PRICES ARE MORE STABLE THAN THOSE OF LONG BONDS THAT COULD BE A BIG MISTAKE INVESTMENT EXPERTS WARN EVEN MARKET PROFESSIONALS DON'T KNOW FOR SURE WHICH WAY INTEREST RATES ARE HEADED BUT THE PROFESSIONALS POINT OUT THAT SHORTTERM BOND FUNDS WHICH TYPICALLY HOLD SECURITIES WITH FIVE YEARS OR LESS UNTIL THEY MATURE COULD GET HAMMERED IF REVIVED INFLATION SPURRED THE FEDERAL RESERVE TO NUDGE UP SHORTTERM INTEREST RATES MEANWHILE LONGERTERM BONDS MIGHT ACTUALLY RALLY HOW COME LONG BONDS ARE ESPECIALLY VULNERABLE TO INFLATION SO INVESTORS IN LONGTERM BONDS WOULD PROBABLY BE CHEERED BY THE FED'S ANTIINFLATION MOVE PEOPLE WHO TRY TO PREDICT INTEREST RATES LEAPING FROM FUND TO FUND CAN END UP BUNGEE JUMPING INTO SOMETHING EVEN RISKIER NOTES HELEN PETERS DIRECTOR OF THE TAXABLE FIXEDINCOME GROUP AT COLONIAL MUTUAL FUNDS IN BOSTON PICK A BOND FUND WHOSE MATURITY IS SIMILAR TO YOUR INVESTMENT HORIZON AND STAY THERE EXPERTS COUNSEL RIGHT NOW MUNICIPAL BONDS MAY BE A PARTICULARLY GOOD BET THEY SAY OR CONSIDER DIVERSIFIED FUNDS SUCH AS T ROWE PRICE SPECTRUM INCOME FUND OR OPPENHEIMER STRATEGIC INCOME FUND WHICH INVEST IN FOREIGN US CORPORATE AND US GOVERNMENT BONDS BUYING A SHORTMATURITY BOND FUND MIGHT NOT BE A GOOD MOVE RIGHT NOW CAUTIONS EILEEN SANDERS AN ANALYST WITH MORNINGSTAR INC A CHICAGO MUTUAL FUND RESEARCH FIRM SHORT RATES MAY RISE A LITTLE AND LONG INTEREST RATES COULD MOVE A LITTLE LOWER LOOKING AHEAD MOST BOND FUNDS ARE UNLIKELY TO PERFORM AS STRONGLY AS THEY DID DURING THE PAST YEAR THIRTYYEAR BOND YIELDS WHICH MOVE IN THE OPPOSITE DIRECTION AS PRICES FELL FROM 8 IN MAY 1992 TO BELOW 675 RECENTLY AND PROBABLY WILL REMAIN RELATIVELY STABLE FOR THE REST OF 1993 ECONOMISTS SAY LONGERTERM GOVERNMENT BOND FUNDS HAVE POSTED AVERAGE TOTAL RETURNS OF 1123 OVER THE PAST 12 MONTHS WHILE SHORTTERM GOVERNMENT FUNDS HAVE GAINED 703 ACCORDING TO FUND RESEARCHERS LIPPER ANALYTICAL SERVICES LONGTERM BOND FUNDS AREN'T A BAD BET FOR THE REST OF THIS YEAR AND MAYBE LONGER SAYS GARY COBURN HEAD OF FIXED INCOME AT PUTNAM INVESTMENTS IN BOSTON ABOUT 90 OF FIXEDINCOME RETURNS COME FROM INCOME AND THE REINVESTMENT OF THAT INCOME RATHER THAN FROM CAPITAL GAINS NOTES MR COBURN WITH 30YEAR BOND YIELDS ABOUT 2 1/2 PERCENTAGE POINTS ABOVE TWOYEAR YIELDS LONG MATURITIES STILL CAN BE A RICH SOURCE FOR INCOME EVEN IF INTEREST RATES RISE IT'S UNLIKELY THEY'LL RACE UPWARD AS RAPIDLY AS DURING THE MOST RECENT RECOVERY MR COBURN ADDS WE HAVE EXCESS CAPACITY WORLDWIDE LOW MONETARY GROWTH GENERALLY WELLBEHAVED WAGES AND STRONG GLOBAL COMPETITION HE EXPLAINS MERRILL LYNCH & CO FORECASTERS SEE US CONSUMER PRICES RISING 32 THIS YEAR JUST ABOVE LAST YEAR'S 3 ASKED TO PICK ONE BOND SECTOR MANY EXPERTS CITE MUNICIPAL BONDS FOR RESIDENTS OF HIGHTAX STATES SINGLESTATE MUNI FUNDS MAY BE ESPECIALLY ATTRACTIVE BECAUSE THESE FUNDS GENERATE INCOME THAT'S EXEMPT NOT ONLY FROM FEDERAL TAXES BUT FROM STATE TAXES AS WELL MUNIS HAVE BEEN RALLYING SINCE LATE LAST YEAR ON FEARS THAT CONGRESS WOULD RAISE TAXES FOR HIGH INCOME EARNERS BUT BUYERS OF LONGTERM MUNICIPAL BONDS CAN STILL GET OVER 80 OF THE YIELD THAT'S AVAILABLE ON COMPARABLE US TREASURYS THAT'S A BUY SIGNAL SAYS JAMES COLBY A SENIOR PORTFOLIO MANAGER FOR EVERGREEN'S NATIONAL INSURED TAXFREE FUND BASED IN PURCHASE NY MUNI ISSUANCE IS LIKELY TO DROP IN THE SECOND HALF OF THIS YEAR EVEN AS DEMAND REMAINS STRONG ANALYSTS SAY ISSUERS RUSHED TO MARKET DURING THE FIRST HALF TO EXPLOIT RATE DECLINES THE PACE OF MUNI ISSUANCE WILL PROBABLY SLOW DURING THE REST OF 1993 AND THROUGH COUPON PAYMENTS MATURATIONS AND CALLS MUNI INVESTORS WERE EXPECTED TO GET BACK AS MUCH AS 30 BILLION ON JULY 1 WHICH PROBABLY WILL FLOW BACK INTO THE MUNI MARKET INTERNATIONAL BOND FUNDS WERE PUMMELED THIS PAST FALL BY THE TURMOIL IN THE FOREIGNEXCHANGE MARKET BUT WITH INTEREST RATES FALLING IN EUROPE INVESTORS MIGHT CONSIDER A GLOBAL BOND FUND OR A DIVERSIFIED BOND FUND WITH SOME FOREIGN EXPOSURE SAYS MORNINGSTAR'S MS SANDERS AMONG DIVERSIFIED FUNDS SHE CITES OPPENHEIMER STRATEGIC INCOME FUND A BROKERSOLD FUND THAT BUYS HIGHYIELD JUNK BONDS FOREIGN SECURITIES AND US GOVERNMENT BONDS WHEN ONE OF THE THREE MARKETS RUNS INTO TROUBLE THE OTHER TWO TYPICALLY ARE OK SAYS OPPENHEIMER STRATEGIC INCOME'S MANAGER ARTHUR STEINMETZ THE FUND WITH A TOTAL RETURN OF 117 FOR THE YEAR THROUGH MAY IS OPPENHEIMER'S MOST POPULAR SINCE EARLY APRIL ITS ASSETS HAVE BALLOONED 50 TO 28 BILLION A MORE PURE FOREIGN PLAY WOULD BE AN INTERNATIONAL BOND FUND SUCH AS SCUDDER STEVENS & CLARK'S 990 MILLION INTERNATIONAL BOND FUND ITS TOTAL RETURN OF 166 FOR THE YEAR ENDED IN MAY WAS FOURTH BEST AMONG 51 FUNDS TRACKED BY LIPPER ANALYTICAL THE FUND'S MANAGERS RECENTLY SHIFTED ASSETS TO NATIONS WHOSE CURRENCIES AND BONDS SEEMED UNDERVALUED SUCH AS BRITAIN AND ITALY WE'VE MANAGED CURRENCY EXPOSURE THROUGH THE SPOT CURRENCY AND OPTIONS MARKETS WHICH GAVE US PROTECTION AGAINST A RISE IN THE DOLLAR SAYS LEAD PORTFOLIO MANAGER LAWRENCE TEITELBAUM 9307060062 930706 CONCERTS FAILED TO UPSTAGE EVEN 1991'S POOR 1ST HALF SPECIAL TO THE WALL STREET JOURNAL THE CONCERT BUSINESS IS SINGING THE BLUES WITH FIRSTHALF REVENUE TRAILING EVEN 1991'S RECORD LOWS THE TRADE MAGAZINE POLLSTAR REPORTS THAT THE TOP 20 TOURS IN THE FIRST HALF SOLD 172 MILLION OF TICKETS DOWN 28 FROM THE 239 MILLION IN THE YEAREARLIER PERIOD AND WORSE EVEN THAN 1991'S 209 MILLION FIRST HALF I THINK THERE ARE TWO FACTORS INCLUDING THE CONTINUING WEAK ECONOMY AROUND THE COUNTRY SAID GARY BONGIOVANNI THE MAGAZINE'S EDITOR SECONDLY THE LEVEL OF PERFORMERS ON THE ROAD IN THE FIRST HALF SIMPLY WASN'T EXCITING ENOUGH TO SELL A LOT OF TICKETS THE THREE TOP SELLERS WERE ALL SEASONED ACTS THE GRATEFUL DEAD PAUL MCCARTNEY AND NEIL DIAMOND HE SAID IT'S TOO EARLY TO TELL WHAT'S WAITING IN THE WINGS FOR THE SECOND HALF HOWEVER HE ADDED WE'VE GOT SOME STRONG ACTS COMING UP LATER IN THE SUMMER INCLUDING THE INDUSTRY'S ONLY JURASSIC PARK'LEVEL ATTRACTION GARTH BROOKS THE COUNTRY SINGER WHO STARTS TOURING LATER THIS MONTH HAS SOLD OUT EVERY DATE ANNOUNCED SO FAR 9307060061 930706 WHO'S NEWS DART CHAIRMAN TAKES FURTHER STEPS TO DISTANCE HIS SON FROM 2 BUSINESSES BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN THE ESCALATING SUCCESSION BATTLE BETWEEN DART GROUP CORP CHAIRMAN HERBERT HAFT AND HIS SON ROBERT THE ELDER HAFT TOOK FURTHER STEPS TO DISTANCE HIS SON FROM ALL DARTCONTROLLED BUSINESSES ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION THE 40YEAROLD SON WAS FIRED FROM HIS JOB AS PRESIDENT OF DART LAST WEEK AFTER LOSING HIS BOARD SEATS AT DARTCONTROLLED CROWN BOOKS CORP AND TRAK AUTO CORP LAST WEEK BOTH COMPANIES ELECTED A NEW SLATE OF DIRECTORS PROPOSED BY THE 72YEAROLD MR HAFT AS OWNER OF 57 OF THE VOTING SHARES OF DART HERBERT HAFT HAS NOW MOVED TO CUT ROBERT'S REMAINING TIES TO CROWN THE COMPANY THAT HE FOUNDED AND FORMERLY RAN AS CHAIRMAN ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION ROBERT HAFT WAS DROPPED FROM CROWN'S PAYROLL LAST WEEK AND HIS PERSONAL SECRETARY WAS FIRED THE YOUNGER MR HAFT DIDN'T RETURN PHONE CALLS SEEKING COMMENT ON WHAT EFFECT THE FIRING WILL HAVE UNDER HIS LONGTERM EMPLOYMENT CONTRACT WITH CROWN THE FIRINGS WERE FIRST REPORTED IN THE WASHINGTON POST ACCORDING TO THE CROWN'S LATEST PROXY STATEMENT ROBERT HAFT HAS A 10YEAR EMPLOYMENT CONTRACT THAT EXPIRES IN 1997 HE EARNED ABOUT 19 MILLION IN SALARY AND BONUS IN 1992 WHEN HE EXERCISED STOCK OPTIONS VALUED AT 11 MILLION THIS WEEK DART WHICH IS BASED IN LANDOVER MD IS EXPECTED TO FILE DOCUMENTS WITH THE SECURITIES AND EXCHANGE COMMISSION THAT WILL FORMALLY OUST ROBERT HAFT AS DART PRESIDENT NEITHER HERBERT HAFT NOR HIS SON ROBERT ATTENDED THE CROWN AND TRAK SHAREHOLDERS' MEETINGS LAST WEEK ACCORDING TO ONE PERSON FAMILAR WITH THE SITUATION HERBERT HAFT CALLED HIS WIFE HIS DAUGHTER AND ROBERT RIGHT BEFORE THE ANNUAL MEETINGS WARNING THEM NOT TO ATTEND AND NOT TO SAY ANYTHING IF THEY HAD ANY HOPES OF RECONCILING WITH HERBERT THE HAFT FEUD BEGAN IN EARLY JUNE WHEN THE ELDER MR HAFT CHANGED HIS MIND ABOUT TURNING DART OVER TO HIS SON IN RECENT WEEKS HAFT FAMILY MEMBERS BOARD MEMBERS AND ADVISERS HAVE TAKEN SIDES AND INTERVENED WHICH HAS PROMPTED HERBERT HAFT TO STRIKE AGAINST SOME OF THEM IN THE LATEST ROUND OF FIRINGS THE ELDER HAFT RECENTLY ENDED DART'S RELATIONSHIP WITH TWO COMPANIES FINANCO INC A NEW YORK INVESTMENT BANK AND WILKE FARR & GALLAGHER A NEW YORK LAW FIRM FINANCO'S CHAIRMAN GILBERT HARRISON SAID THAT HIS ATTEMPTS IN THE PAST FEW WEEKS TO WORK OUT A RESOLUTION BETWEEN THE HAFTS FAILED THE LOGIC BEHIND WHAT IS MOTIVATING HERBERT HAFT IS DIFFICULT TO UNDERSTAND MR HARRISON NOTED CROWN WHICH HAS ANNUAL SALES OF 241 MILLION IS CURRENTLY BEING RUN BY GLENN HEMMERLE ITS CHIEF EXECUTIVE OFFICER AND NEWLY ELECTED DIRECTOR WHO WAS HIRED BY ROBERT HAFT LAST FALL FROM ATHLETE'S FOOT A RETAIL FOOTWEAR CHAIN BOOK PUBLISHERS ARE AWAITING REASSURANCE THAT THE FAMILY FEUD WON'T DISRUPT BUSINESS AT CROWN THE NATION'S THIRDLARGEST BOOKSTORE CHAIN THE YOUNGER MR HAFT WAS A PIONEER IN BOOK DISCOUNTING AND HE IS HIGHLY RESPECTED BY PUBLISHERS WHO PRAISE THE CROWN CHAIN FOR ITS UNUSUAL EFFICIENCY I HAVE BEEN INVOLVED WITH THE HAFTS FATHER AND SON FOR YEARS BUT MOSTLY WITH ROBERT I HAVE ONLY POSITIVE THINGS TO SAY ABOUT HIM SAYS ALBERTO VITALE CHAIRMAN OF ADVANCE COMMUNICATION INC'S RANDOM HOUSE ONE OF THE COUNTRY'S LARGEST PUBLISHERS THE COMPANY HAS BEEN RUN VERY SMOOTHLY AND CONSISTENTLY WITHOUT TURMOIL AT THE TOP I HOPE IT IS SO WELLMANAGED AND WELLSTRUCTURED THAT THE COMPANY WILL CONTINUE TO THRIVE MEG COX CONTRIBUTED TO THIS ARTICLE 9307060060 930706 BUSINESS BRIEF KLM ROYAL DUTCH AIRLINES CARRIER SEES INCREASED SHARE OF EUROPEAN MARKET IN 1994 KLM ROYAL DUTCH AIRLINES EXPECTS TO REACH A 5 SHARE OF THE EUROPEAN AIRLINE MARKET NEXT YEAR UP FROM ABOUT 45 CURRENTLY KLM PRESIDENT PIETER BOUW SAID IN AN INTERVIEW PUBLISHED IN PARIS FRIDAY MR BOUW CITED IN THE FRENCH BUSINESS DAILY AGEFI NOTED THE MARKETSHARE OUTLOOK IS FOR KLM ONLY WHICH EXPECTS TO ENTER SOON AN ALLIANCE WITH SCANDINAVIAN AIRLINES SYSTEM A/S SWISSAIR AND AUSTRIAN AIRLINES OSTERR LUFTVERKEHRS AG THE EXECUTIVE SAID HE HOPES THE NEGOTIATIONS FOR THE ALLIANCE WILL CONCLUDE BY SEPTEMBER WE HAVE TO STICK BY THE CALENDAR MR BOUW SAID ADDING THAT THE DANGER IS THAT DISCUSSIONS BECOME ETERNAL HE ESTIMATED THAT THE ALLIANCE WOULD GENERATE ECONOMIES OF SCALE AMONG THE PARTNERS THAT WOULD REPRESENT AT LEAST 10 OF TOTAL OPERATING COSTS AFTER THREE TO FIVE YEARS 9307060059 930706 WHO'S NEWS SOUTHWESTERN BELL REORGANIZES NAMES ROBERT POPE TO LEAD PHONE OPERATIONS BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL SOUTHWESTERN BELL CORP ANNOUNCED THE START OF AN EXTENSIVE REORGANIZATION OF ITS TELEPHONE OPERATIONS NAMING ROBERT G POPE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SOUTHWESTERN BELL TELEPHONE CO MR POPE 57 YEARS OLD HAS BEEN VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER OF THE PARENT COMPANY HE WILL REMAIN VICE CHAIRMAN AND WILL HEAD THE EFFORT TO REVAMP THE PHONE COMPANY DONALD E KIERNAN 52 SENIOR VICE PRESIDENT FOR FINANCE AND TREASURER OF SOUTHWESTERN BELL CORP WILL TAKE ON THE ADDITIONAL DUTIES OF CHIEF FINANCIAL OFFICER BOTH MEN WILL REPORT TO SOUTHWESTERN BELL CHAIRMAN EDWARD E WHITACRE JR 51 THE COMPANY WHICH RECENTLY MOVED ITS HEADQUARTERS TO SAN ANTONIO FROM ST LOUIS SAID THE EXECUTIVE CHANGES GO INTO EFFECT IMMEDIATELY ALTHOUGH CHANGING THE ORGANIZATIONAL STRUCTURE WILL TAKE SEVERAL MONTHS AS PART OF THE OVERHAUL THE TELEPHONE UNIT'S THREE DIVISIONS THE SERVICE UNIT THE TEXAS DIVISION AND THE MIDWEST DIVISION COMPRISING OPERATIONS IN ARKANSAS KANSAS MISSOURI AND OKLAHOMA ARE BEING COMBINED INTO TWO OPERATING UNITS WITHIN THE CUSTOMER SERVICES UNIT SALES AND OPERATING GROUPS WILL BE ORGANIZED AROUND LINES OF BUSINESS OR GEOGRAPHICAL SERVICE AREAS THE SECOND DIVISION NETWORK SERVICES WILL FOCUS ON THE TELEPHONE NETWORK ORGANIZATION THE COMPANY TAPPED ROYCE S CALDWELL 54 PRESIDENT OF THE FORMER SERVICES DIVISION TO BE PRESIDENT OF THE CUSTOMER SERVICES UNIT J CLIFF EASON 45 WHO HAD BEEN PRESIDENT OF THE MIDWEST DIVISION WAS NAMED PRESIDENT OF NETWORK SERVICES SOUTHWESTERN BELL APPOINTED WILLIAM E DREYER 55 SENIOR EXECUTIVE VICE PRESIDENT FOR EXTERNAL AFFAIRS AT SOUTHWESTERN BELL CORP REPORTING TO MR WHITACRE MR DREYER WHO HAD BEEN PRESIDENT OF THE TEXAS DIVISION BECOMES RESPONSIBLE FOR ALL REGULATORY LEGISLATIVE AND PUBLIC RELATIONS MATTERS CASSANDRA C CARR 48 WAS NAMED PRESIDENT OF A REDEFINED TEXAS DIVISION REPORTING TO MR DREYER SHE HAD BEEN THE TEXAS DIVISION'S VICE PRESIDENT FOR EXTERNAL AFFAIRS EDWARD A MUELLER 46 SENIOR VICE PRESIDENT FOR STRATEGIC PLANNING AT THE PARENT COMPANY WAS NAMED SENIOR VICE PRESIDENT FOR THE TELEPHONE SUBSIDIARY REPORTING TO MR POPE IN THE NEWLY CREATED POST MR MUELLER WILL BE RESPONSIBLE FOR COORDINATING THE PHONE COMPANY'S REORGANIZATION HIS STRATEGIC PLANNING DUTIES WILL BE PICKED UP BY JAMES S KAHAN 45 SENIOR VICE PRESIDENT FOR CORPORATE DEVELOPMENT AT THE PARENT COMPANY JAMES R ADAMS 54 GROUP PRESIDENT OF SOUTHWESTERN BELL CORP WILL HEAD ALL CABLE TELEVISION OPERATIONS AN INCREASINGLY IMPORTANT PART OF SOUTHWESTERN BELL'S BUSINESS PARTICULARLY SINCE THE COMPANY EARLIER THIS YEAR AGREED TO BUY TWO CABLE SYSTEMS IN SUBURBAN WASHINGTON MR ADAMS WILL ALSO CONTINUE TO BE RESPONSIBLE FOR INTERNATIONAL OPERATIONS 9307060058 930706 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ARETHUSA OFFSHORE LTD AN INITIAL OFFERING OF 6646000 SHARES OF ITS COMMON STOCK EXCLUDING THE OVERALLOTMENT OPTION VIA SALOMON BROTHERS INC SMITH BARNEY HARRIS UPHAM & CO BT SECURITIES CORP AND JEFFERIES & CO AUTOMOTIVE INDUSTRIES HOLDING INC AN OFFERING OF TWO MILLION COMMON SHARES VIA KIDDER PEABODY & CO AND LEHMAN BROTHERS CIRCUS CIRCUS ENTERPRISES INC AN OFFERING OF 200 MILLION SENIOR SUBORDINATED NOTES DUE 2003 AND 200 MILLION SENIOR SUBORDINATED DEBENTURES DUE 2013 VIA SALOMON BROTHERS INC OPPENHEIMER & CO WERTHEIM SCHRODER & CO AND DEAN WITTER REYNOLDS INC CODA ENERGY INC AN OFFERING OF SIX MILLION SHARES OF COMMON STOCK VIA AG EDWARDS & SONS AND JOHNSON RICE & CO CYGNUS THERAPEUTIC SYSTEMS AN OFFERING OF THREE MILLION SHARES OF COMMON STOCK VIA PAINEWEBBER INC AND HAMBRECHT & QUIST INC FIRST USA INC AN OFFERING OF FIVE MILLION COMMON SHARES VIA MERRILL LYNCH & CO GREAT WALL ELECTRONIC INTERNATIONAL LTD AN OFFERING OF THREE MILLION AMERICAN DEPOSITARY SHARES REPRESENTING 150 MILLION ORDINARY SHARES VIA HAMBRECHT & QUIST INC KOHL'S CORP AN OFFERING OF FIVE MILLION COMMON SHARES VIA MORGAN STANLEY & CO WILLIAM BLAIR & CO MONTGOMERY SECURITIES SMITH BARNEY HARRIS UPHAM & CO AND ROBERT W BAIRD & CO NEWS CORP AN OFFERING OF UP TO EIGHT MILLION PREFERRED SHARES BY ITS NEWSCORP OVERSEAS LTD UNIT READING & BATES CORP AN OFFERING OF 26 MILLION SHARES OF A NEW CLASS OF CONVERTIBLE PREFERRED STOCK VIA SALOMON BROTHERS INC ROHR INC AN OFFERING OF 125 MILLION IN SENIOR SUBORDINATED DEBT SECURITIES DUE 2003 STARSIGHT TELECAST INC AN INITIAL OFFERING OF 27 MILLION COMMON SHARES VIA SMITH BARNEY HARRIS UPHAM & CO AND KIDDER PEABODY & CO TRACOR INC AN OFFERING OF 100 MILLION OF SENIOR SUBORDINATED NOTES VIA BT SECURITIES CORP VICAL INC AN OFFERING OF TWO MILLION SHARES OF ITS COMMON STOCK 9307060057 930706 BUSINESS BRIEF BURNS PHILP & CO AUSTRALIAN FIRM SEES BENEFITS IN SMITHKLINE BEECHAM PACT BURNS PHILP & CO A FOOD AND HARDWARE CONCERN BASED IN SYDNEY AUSTRALIA SAID IT HOPES TO REALIZE SUBSTANTIAL PROFITS FROM AN AGREEMENT WITH SMITHKLINE BEECHAM TO JOINTLY DEVELOP ORAL CARE AND ORAL HYGIENE PRODUCTS ANDREW TURNBULL BURNS PHILP'S MANAGING DIRECTOR SAID IN A STATEMENT THAT IF THE COMPANY CAN CAPTURE A SMALL PERCENTAGE OF THE WORLD MARKET FOR HEALTH CARE THROUGH THIS VENTURE IT WILL BE VERY PROFITABLE FOR THE GROUP BURNS PHILP'S 63OWNED US SUBSIDIARY APPLIED MICROBIOLOGY INC SIGNED THE PACT WITH SMITHKLINE TO DEVELOP PRODUCTS USING A NATURALLY PRODUCED ANTIMICROBIAL AGENT CALLED NISIN BURNS PHILP IS THE WORLD'S SOLE PRODUCER OF NISIN THE AUSTRALIAN COMPANY ESTIMATES THAT THE WORLD MARKET FOR ORAL CARE PRODUCTS IS 10 BILLION AUSTRALIAN DOLLARS US67 BILLION A BURNS PHILP SPOKESWOMAN IN A PHONE INTERVIEW SAID THE COMPANY BOUGHT INTO APPLIED MICROBIOLOGY IN AUGUST 1992 SPECIFICALLY TO BREAK INTO THE WORLD HEALTH CARE PRODUCTS MARKET USING NISIN SHE SAID IT WILL BE SOME TIME BEFORE BURNS PHILP WILL CAPTURE EVEN A SMALL PART OF THE MARKET BECAUSE MANY OF THE NEW PRODUCTS ARE STILL BEING TESTED 9307060056 930706 CREDIT RATINGS ST PAUL COS MOODY'S INVESTORS SERVICE INC PLACED ITS RATINGS OF THIS INSURANCE COMPANY'S ABOUT 273 MILLION IN SENIOR DEBT UNDER REVIEW FOR POSSIBLE DOWNGRADE THE REVIEW WHICH WILL ALSO INCLUDE A REVIEW OF THE FINANCIALSTRENGTH RATINGS OF ST PAUL'S PROPERTY/CASUALTY INSURANCE SUBSIDIARIES WAS SPARKED BY THE COMPANY'S 420 MILLION AGREEMENT LAST WEEK TO ACQUIRE KEMPER CORP'S ECONOMY FIRE & CASUALTY CO UNIT THE RATING COMPANY SAID IT WILL CONSIDER HOW WELL THE ACQUISITION WILL FIT INTO ST PAUL'S EXISTING PROPERTY/CASUALTY OPERATIONS AS WELL AS REVIEW THE BROAD TRENDS IN THE MARKET FOR MEDICAL MALPRACTICE INSURANCE WHICH IS ONE OF THE MAIN BUSINESS LINES OF THE ST PAUL MINN COMPANY ST PAUL'S SENIOR DEBT IS CURRENTLY RATED DOUBLEA2 AND ITS PROPERTY/CASUALTY SUBSIDIARIES' INSURANCE FINANCIALSTRENGTH RATING IS TRIPLEA THE PRIME1 RATING ON ST PAUL'S COMMERCIAL PAPER ISN'T UNDER REVIEW MOODY'S SAID THE INSURANCE COMPANY EXPRESSED SURPRISE AND DISAPPOINTMENT AT THE ANNOUNCEMENT BUT SAID IT THINKS THAT AFTER BEING GIVEN THE OPPORTUNITY TO PRESENT OUR POSITION AND PROSPECTS IT EXPECTS MOODY'S TO UPHOLD THE CURRENT RATINGS 9307060055 930706 MARKETING & MEDIA ADVERTISING CBS BETS ON LATENIGHT TV HIT AS LETTERMAN AD SPACE SELLS OUT BY KEVIN GOLDMAN THIS NEWS FROM THE HOME OFFICE IN INDIANAPOLIS CBS FINALLY OFFICIALLY HAS A LATENIGHT HIT AMONG ADVERTISERS AT LEAST IN LATE SHOW WITH DAVID LETTERMAN THE NEW NIGHTLY TALK SHOW FEATURING THE GAPTOOTHED ACERBIC COMEDIAN WHO WILL BE PAID 42 MILLION OVER THREE YEARS DOESN'T EVEN AIR UNTIL AUG 30 BUT CBS HAS ACHIEVED OVERNIGHT PARITY WITH RIVAL NBC'S TONIGHT SHOW WITH JAY LENO IN AD RATES CHARGING SPONSORS 30000 FOR A HALFMINUTE COMMERCIAL THAT IS DOUBLE THE RATE CBS NOW GETS FOR ITS LATENIGHT LINEUP OF CHEAPLY MADE SEXANDGUNS DRAMAS DUBBED CRIMETIME AFTER PRIMETIME AS MR LETTERMAN WOULD SAY MY OH MY CBS SAYS IT IS VIRTUALLY SOLD OUT FOR MR LETTERMAN'S FIRST MONTH ON THE AIR A FEW COMPANIES NETWORK INSIDERS SAY WANT IN SO BADLY DURING MR LETTERMAN'S FIRST WEEK WHEN VIEWER INTEREST IS EXPECTED TO BE AT ITS HIGHEST THAT THEY HAVE OFFERED AS MUCH AS 60000 FOR A 30SECOND SPOT THE QUESTION IS WHETHER DAVE WHO VACATES HIS OLD 1235 AM TIME SLOT ON NBC AND MOVES UP AN HOUR ON CBS CAN HOLD ON TO THE AUDIENCE ONCE THE CURIOSITY WEARS OFF A FEW WEEKS AFTER HIS CBS DEBUT TWO NEWCOMERS JOIN THE LATENIGHT SCENE IN A BID TO GRAB A PIECE OF THE TIME SLOT'S 400 MILLION ADVERTISING PIE CHEVY CHASE WILL HOST A SHOW ON NEWS CORP'S FOX NETWORK AND CONAN O'BRIEN REPLACES MR LETTERMAN ON GENERAL ELECTRIC'S NBC CBS AND MR LETTERMAN ARE DEVELOPING A 1235 AM SHOW AS WELL WHICH COULD ADD A THIRD NEW PLAYER LATENIGHT ADVERTISERS MAINLY BEER AUTOMOBILES AND MOVIES HAVE AMPLE OPPORTUNITY TO REACH THEIR TARGET DEMOGRAPHIC GROUP OF 18TO34YEAROLDS BUT WHICH SHOW WILL THEY CHOOSE THE INDUSTRY IS BETTING THAT CBS WILL WALK AWAY WITH THOSE DEMOGRAPHICS SAYS BILL CROASDALE PRESIDENT OF NATIONAL BROADCASTING FOR WESTERN INTERNATIONAL MEDIA LOS ANGELES WHICH BUYS AIR TIME THAT'S A NEAT NETWORK TRICK SINCE CBS ISN'T KNOWN FOR ATTRACTING YOUNGER VIEWERS INSTEAD APPEALING MAINLY TO AN OLDER RURAL AUDIENCE WE'RE DOING BUSINESS WITH PEOPLE WE NORMALLY DON'T HEAR FROM SAYS JOSEPH D ABRUZZESE A SENIOR VICE PRESIDENT AT CBS ABOUT 70 OF THE ADVERTISERS THAT HAVE SIGNED ON FOR MR LETTERMAN'S HOUR OF SARCASTIC HUMOR AND CELEBRITY INTERVIEWS HADN'T PREVIOUSLY ADVERTISED ON CBS IN LATENIGHT THE LIST INCLUDES LEVI STRAUSS & CO ANHEUSERBUSCH MILLER BREWING DAIMLERBENZ'S MERCEDESBENZ OF NORTH AMERICA FORD MOTOR MAZDA MOTOR'S MAZDA MOTOR OF AMERICA CARNIVAL CRUISE LINES MASTERCARD WHICH SIGNED A ONEYEAR DEAL PARAMOUNT COMMUNICATIONS NEWS CORP'S TWENTIETH CENTURY FOX FILM AND PHILIP MORRIS'S KRAFT GENERAL FOODS WHILE CBS IS IMPOSING A 100 INCREASE IN AD PRICES COMPARED WITH WHAT IT GETS FOR CRIMETIME AFTER PRIMETIME IT IS GUARANTEEING ADVERTISERS ONLY A 37 INCREASE IN THE AUDIENCE IT HAS PROMISED THAT MR LETTERMAN WILL ATTRACT 41 OF US HOMES WITH TV SETS A MODEST GOAL SINCE HE IS EXPECTED TO BEAT MR LENO AT LEAST INITIALLY BECAUSE OF THE CURIOSITY FACTOR NBC'S TONIGHT SHOW AVERAGED 47 IN THE SECOND QUARTER ACCORDING TO AC NIELSEN CO CBS NOW GETS A 3 RATING AT 1130 PM ANALYSTS SAY CBS WILL HAVE TO DRAW 3 TO 35 OF HOMES JUST TO BREAK EVEN ON THE SHOW'S 40 MILLION ANNUAL COST EACH RATINGS POINT ABOVE THAT WOULD MEAN 20 MILLION IN PRETAX PROFIT FOR CBS IN 1989 THE LAST TIME CBS TRIED A TALK SHOW WITH WHEEL OF FORTUNE HOST PAT SAJAK IT BOLDLY GUARANTEED 39 OF US HOMES WITH TELEVISIONS AND CHARGED SPONSORS 20000 TO 30000 THE SHOW WAS YANKED AFTER 18 MONTHS BUT THAT IS LIKE COMPARING AN APPLE WITH WELL A LEMON FOX IS JUST STARTING TO SELL THE CHEVY CHASE SHOW WHICH HAS ITS PREMIERE SEPT 7 IT WILL GET A HALFHOUR JUMP ON THE COMPETITION BY STARTING AT 11 PM WHEN OTHER NETWORK AFFILIATES AIR LOCAL NEWS FOX IS PRICING THE FIRST HALFHOUR AT 30000 PER 30SECOND SPOT AND IS PRICING THE SECOND HALFHOUR AT 20000 TO 25000 BECAUSE THE FIRST HALF WILL BE IN SUCH HIGH DEMAND SAYS JON NESVIG FOX'S SENIOR VICE PRESIDENT FOR SALES FOX IS GUARANTEEING THAT 5 OF US HOMES WITH TV SETS WILL WATCH THE COMEDIAN'S FIRST HALFHOUR AND THAT 3 WILL STAY TUNED THE SECOND HALF AFTER MR LETTERMAN AND JAY LENO BEGIN YUCKING IT UP ELSEWHERE ON THE DIAL THE NEW CONAN O'BRIEN SHOW ON NBC MEANWHILE IS SCHEDULED FOR AN AUGUST START MAZDA IS AMONG THE ADVERTISERS PURCHASING TIME ON THE LETTERMAN SUCCESSOR ALTHOUGH AN NBC SPOKESMAN DECLINES TO NAME OTHER SPONSORS THE POTENTIAL LOSER IN THE NEW LATENIGHT WARS COULD BE ARSENIO HALL MEDIA BUYERS SAY HE CURRENTLY FETCHES 25000 FOR A 30SECOND SPOT BUT THAT COULD SLIDE IF HIS RATINGS DROP ONCE MR LETTERMAN SIGNS ON AND IF MR CHASE SUCCEEDS AS WELL HIS AD RATE COULD GO TO BETWEEN 15000 AND 20000 BY THE FIRST OF THE YEAR SAYS RON VON URFF SENIOR DIRECTOR OF NETWORK NEGOTIATIONS AT SFM MEDIA A MEDIA BUYING SERVICE WITH ALL THE SHOWS OUT THERE THE PIE MIGHT BE SLICED TOO THIN BECAUSE THERE ARE A FINITE NUMBER OF ADVERTISERS TO THE LATENIGHT MARKET MR HALL MAY BE LEFT STANDING IN THE GAME OF LATENIGHT MUSICAL CHAIRS A SPOKESMAN FOR PARAMOUNT WHICH PRODUCES ARSENIO SAYS SUCH TALK IS SPECULATION ARSENIO' IS MORE THAN FOUR YEARS OLD AND SEEMS TO BE DEFLECTING ALL THE COMPETITION RIGHT NOW IT'S TOO SOON TO TELL ONE SHOW WON'T LIKELY BE HURT WHEN DAVID LETTERMAN MOVES TO THE 1130 SLOT NIGHTLINE THE NEWS PROGRAM FROM CAPITAL CITIES/ABC THE HALFHOUR SHOW ANCHORED BY TED KOPPEL COMMANDS THE HIGHEST AD RATE IN LATENIGHT A HEFTY 45000 FOR 30 SECONDS THANKS TO ITS LARGELY UPSCALE MALE AUDIENCE AND THAT SAYS MR CROASDALE OF WESTERN INTERNATIONAL MEDIA ISN'T LIKELY TO CHANGE TWO OF THE BIGGEST PROMOTERS OF MILK THE UNITED DAIRY INDUSTRY ASSOCIATION AND THE NATIONAL DAIRY BOARD HAVE DECIDED TO HIRE A SINGLE AGENCY TO HANDLE THEIR FLUID MILK ADVERTISING BILLINGS COULD BE AS MUCH AS 50 MILLION THE REVIEW IS EXPECTED TO START AT THE END OF THE MONTH WITH A DECISION EXPECTED IN THE FALL JONESLUNDIN THE CHICAGO CONSULTING FIRM IS COORDINATING THE SEARCH D'ARCY MASIUS BENTON & BOWLES'S CHICAGO OFFICE IS THE CURRENT AGENCY FOR THE AMERICAN DAIRY ASSOCIATION THE ADVERTISING ARM OF THE UNITED DAIRY INDUSTRY ASSOCIATION THE SAN FRANCISCO OFFICE OF INTERPUBLIC GROUP'S MCCANNERICKSON HANDLES THE NATIONAL DAIRY BOARD'S MILK ADS WHO'S NEWS INTERPUBLIC GROUP'S MCCANNERICKSON NAMED RON BENZA AN EXECUTIVE VICE PRESIDENT IN CHARGE OF THE AGENCY'S SAN FRANCISCO OPERATIONS MR BENZA AGE 40 HAD BEEN AN EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF BOZELL'S MINNEAPOLIS OFFICE HE SUCCEEDS JACK TORMEY AGE 63 WHO IS RETIRING AS GENERAL MANAGER TOM CARROLL PRESIDENT OF THE NEW YORK SHOP WEISS WHITTEN CARROLL STAGLIANO IS LEAVING THE AGENCY TO EXPLORE SOME OPTIONS THE AGENCY SAID IN A STATEMENT ADAM STAGLIANO THE AGENCY'S DIRECTOR OF ACCOUNT PLANNING SUCCEEDS MR CARROLL THE AGENCY SAID 9307060054 930706 CELINA FINANCIAL GOES PRIVATE CELINA OHIO CELINA FINANCIAL CORP SAID ITS SHAREHOLDERS APPROVED THE PREVIOUSLY ANNOUNCED PLAN TO BE TAKEN PRIVATE THROUGH A TENDER OFFER BY ONE OF ITS MEMBER MUTUAL INSURANCE COMPANIES AT A SPECIAL SHAREHOLDERS MEETING FRIDAY HOLDERS REPRESENTING 96 OF ITS COMMON STOCK APPROVED THE PLAN 9307060053 930706 US CAR FIRMS TO LIFT OUTPUT IN 3RD QUARTER BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE WOBBLY ECONOMY HASN'T SHAKEN DETROIT'S PRODUCTION PLANS AUTO MAKERS ARE PLANNING SIZABLE PRODUCTION INCREASES FOR THE THIRD QUARTER REFLECTING CONFIDENCE THAT THE INDUSTRY'S BUDDING RECOVERY CAN STILL GATHER STRENGTH FORD MOTOR CO FOR EXAMPLE IS ADDING 13000 MORE CARS AND 2000 MORE TRUCKS TO ITS ORIGINAL JULYTOSEPTEMBER PRODUCTION PLAN OVERALL PEOPLE IN THE INDUSTRY SAY GENERAL MOTORS CORP CHRYSLER CORP AND FORD PLAN TO BUILD 1091000 CARS IN THE THIRD QUARTER UP 208 FROM YEAREARLIER LEVELS THEY SAY THE AUTO MAKERS ALSO PLAN TO BOOST TRUCK PRODUCTION 232 TO 987000 VEHICLES IN THAT PERIOD THE PRODUCTION INCREASES REFLECT STRONGER SALES WHICH ANALYSTS SAY HAVE BEEN PROPELLED BY LOW INTEREST RATES PENTUP DEMAND AND THE AUTO MAKERS' VALUE PRICING STRATEGIES UNDER VALUE PRICING COMPANIES OFFER SEVERAL OPTIONS AS STANDARD EQUIPMENT WHILE CUTTING A CAR'S PRICE THROUGH THE END OF MAY THE BIG THREE US AUTO MAKERS HAVE SOLD 4221255 CARS AND TRUCKS THIS YEAR UP 117 FROM A YEAR AGO AS JAPANESE AUTO MAKERS HAMMERED BY THE SOARING YEN WATCHED SALES WILT THE BIG THREE SAW THEIR SHARE OF THE US CAR MARKET CLIMB TO 686 AT THE END OF MAY COMPARED WITH 652 A YEAR EARLIER WE'RE BEGINNING TO SEE A VERY SLOW TREND UPWARD IN TERMS OF DEMAND SAYS CHRISTOPHER CEDERGREN AN AUTO ANALYST AT AUTOPACIFIC GROUP INC AUTO MAKERS ARE EXPECTED TO STICK WITH AMBITIOUS SCHEDULES INTO THE FOURTH QUARTER EVEN THOUGH ANALYSTS PREDICT SALES WILL SOFTEN OVER THE NEXT SEVERAL MONTHS STILL DETROIT'S PRODUCTION PLANS WON'T NEED TO BE TRIMMED ANALYSTS SAY BECAUSE THE AUTO MAKERS ARE STOCKPILING INVENTORY IN ADVANCE OF SUMMER SHUTDOWNS FOR VACATIONS AND RETOOLING GM FOR EXAMPLE SAID 10 OF ITS CAR ASSEMBLY PLANTS WILL HALT PRODUCTION FOR TWO WEEKS DURING THE QUARTER TO PREPARE FOR MODEL CHANGEOVER BUT WHILE THE INDUSTRY'S NEARTERM SALES OUTLOOK IS THE BRIGHTEST IN NEARLY THREE YEARS IT IS STILL FAR FROM A BOOM AUTO EXECUTIVES CAUTIOUSLY PREDICT THAT US CAR AND TRUCK SALES THIS YEAR WILL RISE TO ABOUT 14 MILLION VEHICLES THAT IS WELL SHORT OF THE YEARS IN WHICH THE INDUSTRY ENJOYED SALES OF 15 MILLION AND 16 MILLION VEHICLES DURING THE 1980S WHEN THE POPULATION OF POTENTIAL BUYERS WAS SMALLER AND WITH THE ECONOMY WEAK AND INCOME GROWTH POTENTIALLY STALLING AUTO MAKERS FACE A PROBLEM THEY REFER TO AS AFFORDABILITY AND WHICH CONSUMERS CALL STICKER SHOCK ALREADY HIGH CAR PRICES HAVE KEPT MANY AMERICANS OUT OF THE NEW CAR MARKET FOR LONGER PERIODS THAN IN THE PAST THE AVERAGE PRICE OF A NEW CAR IS NOW 17600 COMPARED WITH 15260 FOUR YEARS AGO THAT IS A MAJOR REASON WHY THE AVERAGE CAR ON THE ROAD IS NOW NINE YEARS OLD THE HIGHEST AVERAGE SINCE THE 1950S A LOT OF PEOPLE NEED A NEW CAR BECAUSE THE CAR THEY'RE DRIVING IS SO OLD SAYS MR CEDERGREN THEY'VE BEEN NICKELANDDIMED TO DEATH AT THE REPAIR GARAGE BUT AUTO MAKERS ARE FINDING THEY HAVE TO GIVE A LOT TO GET CONSUMERS OUT OF THEIR WRECKS CHRYSLER FOR EXAMPLE LAST WEEK ANNOUNCED FINANCING RATES AS LOW AS 29 ON CONTRACTS UP TO 24 MONTHS IN THE LUXURY SEGMENT CUTRATE LEASES THAT LOWER MONTHLY PAYMENTS ARE ALMOST A STANDARD FEATURE OF ANY NEW MODEL SAFETY AND ENVIRONMENTAL STANDARDS THAT AUTO MAKERS MUST COMPLY WITH BY THE YEAR 2000 COULD TACK AN ADDITIONAL 2000 ONTO THE COST OF A NEW VEHICLE ANALYSTS SAY TO OFFSET THESE RISING COSTS AUTO MAKERS ARE SCRAMBLING TO SIGNIFICANTLY REDUCE THE MONEY SPENT DEVELOPING AND ASSEMBLING VEHICLES THE BIG THREE NEED LOOK NO FURTHER THAN THE NEAREST TOYOTA HONDA OR NISSAN DEALER TO SEE THE DANGERS OF RAISING PRICES TOO FAST JAPANESE AUTO MAKERS HAVE RAISED PRICES AGGRESSIVELY IN RESPONSE TO THE SURGING VALUE OF THE YEN AGAINST THE US DOLLAR ANALYSTS SAY JAPANESE CARS NOW COST AN AVERAGE OF 2500 MORE THAN COMPETING DETROIT MODELS AS A RESULT JAPANESE AUTO MAKERS HAVE SEEN THEIR SHARE OF THE US CAR MARKET SLIDE TO 28 FROM 29 A YEAR AGO THE JAPANESE ARE MAKING WONDERFUL CARS BUT THEIR PRICES ARE UP A LOT SAYS MEGADEALER MARTIN SWIG OWNER OF SAN FRANCISCO AUTOCENTER SO CONSUMERS ARE LOOKING AT AMERICAN CARS 9307060052 930706 INTERNATIONAL CROATIA'S PRIVATIZATION OPENS TO FOREIGN INVESTORS A WALL STREET JOURNAL NEWS ROUNDUP IF FORTUNE FAVORS THE BOLD CROATIA MIGHT BE A GOLD MINE FOR COURAGEOUS FOREIGN INVESTORS THE CROATIAN PRIVATIZATION FUND IS PUTTING 14 COMPANIES ON THE BLOCK FOR THE FIRST TIME FOREIGNERS CAN BUY STATEOWNED PROPERTY IN THE FORMER YUGOSLAV REPUBLIC ATTRACTING INVESTORS TO A BALKAN COUNTRY TORN BY WAR SHAKEN BY HYPERINFLATION OF MORE THAN 1000 A YEAR AND RULED BY A FORCEFUL PRESIDENTIAL GOVERNMENT SOUNDS LIKE A TOUGH TASK BUT PETER GOLDSCHEIDER AT EPIC THE AUSTRIAN MANAGEMENT CONSULTING FIRM IN CHARGE OF THE OFFERING SAYS SEVERAL INTERNATIONAL FOOD AND DRINK COMPANIES ALREADY HAVE EXPRESSED INTEREST IN SOME OF THE CROAT CONCERNS AMONG THE COMPANIES OPEN FOR INVESTMENT ARE KRAS LTD A CONFECTIONER WITH 2772 EMPLOYEES BADEL BAP LTD A BEVERAGE COMPANY THAT ALSO SELLS PEPSICOLA UNDER LICENSE AND SIRELA LTD A DAIRYPRODUCTS MAKER THERE ARE ALSO SEVERAL BREWERIES A PHOTOEQUIPMENT CONCERN AND AN ELECTRONICS COMPANY AS WELL AS A MAKER OF CEMENT PRODUCTS CROATIA'S BIGGEST PROBLEM IS THAT PEACE STILL ISN'T IN SIGHT ROUGHLY A QUARTER OF THE COUNTRY'S TERRITORY IS OCCUPIED BY SERB FORCES AND FIGHTING IN PARTS OF THE NORTHEAST MAY INTENSIFY IF THE BOSNIAN CONFLICT IS RESOLVED BUT THERE TOO CROATIA'S INVOLVEMENT IS GROWING RATHER THAN WEAKENING 9307060051 930706 POWER AND POLITICS MIX IN MALAYSIAN ELECTRICPLANT DEAL BY RAPHAEL PURA STAFF REPORTER OF THE WALL STREET JOURNAL KUALA LUMPUR MALAYSIA MALAYSIAN RESOURCES CORP BHD A COMPANY CONTROLLED BY ALLIES OF FINANCE MINISTER DATUK ANWAR IBRAHIM APPEARS SET TO TAKE COMMAND OF A PRIVATE POWER PROJECT VALUED AT 34 BILLION RINGGIT 132 BILLION THE COUNTRY'S BIGGEST SUCH VENTURE EXECUTIVES FAMILIAR WITH THE ARRANGEMENT SAY MALAYSIAN RESOURCES IS NEGOTIATING A TWOSTEP TRANSACTION THAT WOULD GIVE IT A DOMINANT STAKE IN A COMPANY THAT HOLDS ONE OF TWO GOVERNMENTISSUED LICENSES TO BUILD AND RUN PRIVATE POWER PLANTS THAT COMBINED WITH A PLANNED INVESTMENT IN ANOTHER PRIVATE POWER VENTURE COULD BESTOW UPON MALAYSIAN RESOURCES A ROLE SECOND ONLY TO THAT OF THE RECENTLY PRIVATIZED TENAGA NASIONAL BHD IN MALAYSIAN POWER GENERATION THE PLAN CALLS FOR MALAYSIAN RESOURCES TO BUY A MAJORITY STAKE IN SIKAP POWER SDN BHD A PRIVATELY HELD CONCERN LICENSED TO BUILD A 1300MEGAWATT POWER PLANT IN PERAK STATE MALAYSIAN RESOURCES WOULD THEN ACQUIRE ABOUT 57 OF PUBLICLY LISTED PLANTATION COMPANY MALAKOFF BHD FROM A SUBSIDIARY OF LEMBAGA TABUNG ANGKATAN TENTERA MALAYSIA'S ARMEDFORCES PENSION FUND BY INJECTING ITS SIKAP SHARES INTO MALAKOFF THE PLANNED REVERSE TAKEOVER WHICH KNOWLEDGEABLE EXECUTIVES VALUE AT MORE THAN 215 MILLION RINGGIT 834 MILLION WOULD PLACE SIKAP IN A PUBLIC COMPANY THAT MALAYSIAN RESOURCES COULD THEN USE TO HELP RAISE FUNDS FOR THE POWER PROJECT THE TRANSACTION WILL BE CLOSELY WATCHED IN MALAYSIA FOR SEVERAL REASONS FOR ONE THE COUNTRY'S HIGHSTAKES COMMITMENT TO A MULTIBILLIONDOLLAR PROGRAM OF SOCALLED INDEPENDENT POWER PRODUCERS OR IPPS HAS BEEN DRAGGING THE IPP PROGRAM IS CONSIDERED CRITICAL BECAUSE INDUSTRIAL GROWTH HAS BEGUN TO CRIMP ELECTRICITY SUPPLIES FROM STATECONTROLLED TENAGA NASIONAL WHICH CURRENTLY ENJOYS A MONOPOLY ON POWER GENERATION SIKAP AND YTL CORP BHD HOLD THE TWO GOVERNMENTISSUED LICENSES TO BUILD PRIVATE POWER PLANTS IN ADDITION MANY MALAYSIAN AND FOREIGN CORPORATE INVESTORS ARE LIKELY TO FOCUS ON THE TRANSACTION'S POLITICS IN THE PAST SIX MONTHS MALAYSIAN RESOURCES HAS EMERGED AS ONE OF THE COUNTRY'S FASTESTRISING AND MOST CONTROVERSIAL COMPANIES LARGELY BECAUSE OF ITS SHAREHOLDERS' LINKS TO DATUK ANWAR THE FINANCE MINISTER DATUK ANWAR IS SAID TO HAVE POLITICAL ASPIRATIONS TO THE COUNTRY'S PREMIERSHIP BECAUSE A PARTY ELECTION IS LOOMING IN NOVEMBER SPECULATION THAT HIS BACKERS ARE ASSEMBLING A CAMPAIGN WAR CHEST THROUGH BUSINESS VENTURES HAS PROMPTED PRICE SURGES IN SOCALLED POLITICAL STOCKS SUCH AS MALAYSIAN RESOURCES MALAYSIAN RESOURCES EXECUTIVES DIDN'T RESPOND LAST WEEK TO TELEPHONE INQUIRIES OFFICIALS AT THE ARMEDFORCES PENSION FUND MALAKOFF'S ULTIMATE HOLDING COMPANY DECLINED TO COMMENT 9307060050 930706 TECHNOLOGY USSTYLE PCS SEEN GAINING MORE OF JAPAN'S MARKET BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AN INFLUENTIAL RESEARCH FIRM RELEASED A FORECAST SHOWING THE MARKET SHARE OF USSTYLE PERSONAL COMPUTERS WILL GROW RAPIDLY IN JAPAN OVER THE NEXT FIVE YEARS BUT THE NEWS ISN'T ALL GOOD FOR US COMPUTER MAKERS THAT HAVE STORMED JAPAN WITH LOWPRICED PCS IN ITS FORECAST THE JAPANESE ARM OF USBASED DATAQUEST INC SAID MUCH OF THAT GROWTH MAY NOT COME FROM US COMPANIES AND THE GROWTH ISN'T LIKELY TO DISLODGE JAPAN'S NEC CORP WHICH CONTROLS OVER HALF OF THE NATION'S PC MARKET SINCE THE FALL US COMPANIES INCLUDING COMPAQ COMPUTER CORP INTERNATIONAL BUSINESS MACHINES CORP AND DELL COMPUTER CORP HAVE BEEN IMPORTING AGGRESSIVE MARKETING AND PRICECUTTING STRATEGIES TO THE ONCEPLACID JAPANESE PC MARKET THE RESULT HAS BEEN A JAPANESE VERSION OF THE PC PRICE WAR THAT'S BEEN RAGING IN THE US EVEN PROUD NEC WAS FORCED TO CUT ITS PRICES BY ABOUT HALF IN JANUARY THE KEY TO THE US ATTACK WAS NEW SOFTWARE THAT ALLOWED ORDINARY IBMCOMPATIBLE PCS TO HANDLE THE 10000PLUS CHARACTERS THAT MAKE UP THE BULK OF THE JAPANESE LANGUAGE DEVELOPED BY IBM AND KNOWN AS DOS/V THE SOFTWARE WAS SUPPOSED TO GIVE US MAKERS THE COMPETITIVE EDGE OVER NEC WHOSE PCS ARE DESIGNED SPECIFICALLY FOR JAPAN AT FIRST GLANCE THE NEW DATAQUEST FORECAST SEEMS TO BOLSTER THOSE HOPES IT SHOWS UNIT SALES OF DOS/V PCS RISING BY A COMPOUND ANNUAL RATE OF 19 THROUGH 1997 SUCH GROWTH WOULD GIVE DOS/V MACHINES A MARKET SHARE OF 32 IN 1997 UP FROM 83 IN 1992 DURING THAT SAME PERIOD DATAQUEST EXPECTS THE ENTIRE PC MARKET IN JAPAN TO GROW 10 ANNUALLY IN UNIT TERMS TO 36 MILLION UNITS IN 1997 FROM 22 MILLION UNITS IN 1992 ON CLOSER INSPECTION HOWEVER THE FORECAST SUGGESTS THAT COMPAQ IBM AND DELL MAY NOT BE THE PRIMARY BENEFICIARIES OF THE PRICE WAR THEY STARTED ACCORDING TO DATAQUEST ANALYST KATSUSHI SHIGA WHO PREPARED THE FORECAST THE MARKET SHARE OF JAPANESE STANDARD PCS A CATEGORY THAT INCLUDES NOT JUST NEC MACHINES BUT ALSO PCS MADE SPECIFICALLY FOR THE JAPANESE MARKET BY SUCH COMPANIES AS FUJITSU LTD WON'T CHANGE GREATLY OVER THE NEXT FIVE YEARS MR SHIGA DECLINED TO GIVE HIS 1997 MARKETSHARE FORECAST FOR THIS SEGMENT HE EXPECTS THE COMPANIES TO CHANGE THEIR STRATEGIES OVER THAT PERIOD IN 1992 FOR INSTANCE MR SHIGA INCLUDED SIX OR SEVEN COMPANIES IN HIS JAPANESE STANDARD CATEGORY BY 1997 HE SAID THAT CATEGORY WILL CONSIST OF JUST NEC AND SEIKO EPSON CORP AN NECCLONE MAKER THE OTHER COMPANIES HE SAID ARE LIKELY TO EMBRACE DOS/V AND WILL PROBABLY ACCOUNT FOR MUCH OF ITS MARKETSHARE GROWTH HE DECLINED TO SAY HOW MUCH MR SHIGA SAID HIS FORECAST SHOWS NEC WILL PROBABLY INCREASE ITS MARKET SHARE OVER THE NEXT FIVE YEARS 9307060049 930706 PAN ATLANTIC'S REVERSE SPLIT WHITE PLAINS NY PAN ATLANTIC INC SAID ITS PROPOSED 1FOR4 REVERSE STOCK SPLIT WAS APPROVED BY SHAREHOLDERS AND IS EFFECTIVE FOR STOCK OF RECORD JULY 15 PAN ATLANTIC CURRENTLY HAS ABOUT 22 MILLION SHARES OUTSTANDING THE INSURANCE UNDERWRITER AND REINSURER ALSO SAID IT CHANGED ITS NAME TO US CAPITAL GROUP INC 9307060048 930706 QUARTERLY MUTUAL FUNDS REVIEW ANALYSTS SAY BOND FUND RALLY WILL CONTINUE IN SOME CATEGORIES BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SUBSIDING INFLATION IGNITED A RALLY IN BOND PRICES THAT REWARDED BOND MUTUAL FUND INVESTORS IN THE SECOND QUARTER CAN THE RALLY CONTINUE IN SOME FUND CATEGORIES BUT NOT ALL ANALYSTS SAY TAXABLE BOND FUNDS REAPED QUARTERLY TOTAL RETURNS OF 261 ON AVERAGE INCLUDING PRICE GAINS AND REINVESTED DIVIDENDS BEATING THE AVERAGE RETURN ON US STOCK FUNDS BY 132 PERCENTAGE POINTS THE QUARTER'S GAIN BROUGHT THE 12MONTH RETURN ON BOND FUNDS TO 107 BENCHMARK US TREASURY BONDS SOARED MORE THAN THREE POINTS OR MORE THAN 30 FOR EACH 1000 FACE AMOUNT IN THE QUARTER PUSHING LONGTERM YIELDS DOWN TO 667 FROM 693 AT THE END OF MARCH GAINS IN LONGTERM BONDS SPARKED A POWERFUL RALLY IN ZEROCOUPON BONDS FUNDS HOLDING THESE VOLATILE INSTRUMENTS FARED BEST DURING THE QUARTER WITH A TOTAL RETN OF 626 IN THE PAST 12 MONTHS ZERO FUNDS WERE UP 2453 ZEROS WHICH ARE BONDS STRIPPED OF THEIR INTERESTPAYING COUPONS RISE AND FALL MORE SHARPLY WITH CHANGES IN INTEREST RATES THAN REGULAR BONDS GEORGE GIANARIS SALES MANAGER AT BOND DEALER DAIWA SECURITIES AMERICA THINKS LONGTERM US RATES WILL CONTINUE TO FALL IN THE THIRD QUARTER CAN YOU SEE 65 YIELDS ON LONGTERM BONDS YES INVESTORS THOUGHT 675 YIELDS WAS THE LIMIT HE SAYS BUT YIELD DECLINES IN THE CURRENT QUARTER WON'T BE AS DRASTIC AS IN THE SECOND QUARTER HE PREDICTS MR GIANARIS THINKS INVESTORS SHOULD CONSIDER MOVING OUT OF ZEROCOUPON FUNDS NOW AND SPLIT THEIR INVESTMENTS BETWEEN SHORTTERM AND LONGTERM TREASURYS WHY SLOWING ECONOMIC GROWTH IN THE US THE CLINTON ADMINISTRATION'S TAX AND HEALTHCARE REFORMS COULD WORK AS FISCAL DRAGS ON THE ECONOMY BRAKING GROWTH MR GIANARIS SAYS IF SLOW U S ECONOMIC GROWTH IS ON THE HORIZON INVESTORS MIGHT CONSIDER BACKING AWAY FROM ANOTHER REWARDING FUND GROUP JUNKBOND FUNDS THE HIGHYIELD HIGHRISK FUNDS WHICH INVEST IN BONDS BELOW INVESTMENT GRADE EARNED THE NO 2 SPOT IN THE QUARTER WITH A TOTAL RETURN OF 475 JUNK PRICES RALLIED IN THE QUARTER BUT NOT NECESSARILY BECAUSE OF IMPROVING CREDIT QUALITY SAYS ONE INVESTOR LOW US INTEREST RATES SENT THOUSANDS OF INVESTORS SCRAMBLING FOR HIGHERYIELDING JUNK BONDS THERE HAS BEEN TOO MUCH MONEY CHASING TOO FEW DEALS SAYS CURTISS BARROWS MANAGER OF THE PHOENIX HIGH YIELD FUND TOO MANY JUNK ISSUES HE SAYS HAVE MORE CREDIT RISK AND NOT ENOUGH YIELD HE PREDICTS THERE ARE GOING TO BE MORE DEFAULTS THIS FALL OR IN THE FIRST QUARTER OF NEXT YEAR TO CAPTURE HIGH YIELDS AND TAKE LESS CREDIT RISK MR BARROWS IS DIVERSIFYING INTO HIGHYIELDING BONDS OF FOREIGN NATIONS AND CORPORATIONS GLOBAL BOND FUNDS DIDN'T ACHIEVE THE MORE THAN 6 RETURNS OF ZEROCOUPON BOND FUNDS BUT THEIR PERFORMANCE IN THE QUARTER WAS RESPECTABLE AT 378 ON AVERAGE GLOBAL BOND PROS ARE BULLISH ABOUT THE PROSPECTS FOR THE NEXT SIX MONTHS WHAT'S GOING INVESTORS' WAY THE DISINFLATIONARY REALITY OF THE WORLD SAYS GARY KREPS CHIEF INVESTMENT OFFICER FOR GT CAPITAL MANAGEMENT'S GLOBAL BOND PORTFOLIOS MR KREPS SAYS GLOBAL BOND INVESTORS WILL CONTINUE TO REAP THE EFFECTS OF A GLOBAL TIGHTENING BY CENTRAL BANKS THAT STARTED IN THE 1980S LATELY CENTRAL BANKS IN EMERGING NATIONS SUCH AS MEXICO AND ARGENTINA GOT RELIGION MR KREPS SAYS AND STARTED RUNNING CONSERVATIVE MONETARY POLICIES TO BOLSTER THEIR CURRENCIES AND SLASH AWAY INFLATION IN ADDITION MANY LATIN AMERICAN NATIONS ARE ATTEMPTING TO INSTITUTE LABOR REFORMS TO CUT AWAY AT WHAT ARE KNOWN AS STRUCTURAL INFLATIONARY PRESSURES REMARKABLY INFLATION IN THESE COUNTRIES AND OTHERS HAS FALLEN DRASTICALLY MEXICO FOR EXAMPLE WHICH HAD 517 CONSUMER PRICE INFLATION IN 1988 MAY BOAST CONSUMER INFLATION BELOW 10 THIS YEAR IT'S AN ATTRACTIVE TIME FOR INVESTORS PRIMARILY BECAUSE INTEREST RATES IN NATIONS AROUND THE WORLD ARE STILL RELATIVELY HIGH COMPARED WITH INFLATION THAT'S BECAUSE BOND INVESTORS AREN'T FULLY CONVINCED THAT CENTRAL BANKS HAVE WON THE BATTLE AUSTRALIA MR KREPS SAYS HAS ABOUT 1 ANNUAL INFLATION BUT LONGTERM RATES STILL HANG HIGH AT ABOUT 75 INVESTORS IN GLOBAL BOND FUNDS SHOULD PROBABLY CONSIDER THOSE FUNDS THAT HAVE THE ABILITY TO HEDGE CURRENCY RISK AND INVEST IN BOTH SHORTTERM AND LONGTERM BONDS THE PROS SAY ROBERT KYPRIANOU A DIRECTOR AT SALOMON BROTHERS ASSET MANAGEMENT IN LONDON SAYS SEVERAL EUROPEAN BOND MARKETS WILL DELIVER STRONG CAPITAL GAINS TO INVESTORS IN THE MONTHS AHEAD EUROPE IN 1993 IS WITNESSING ITS WORST POSTWAR RECESSION HE SAYS GOVERNMENTS WILL BEGIN REDUCING SHORTTERM RATES TO GET ECONOMIES GROWING AGAIN HE PREDICTS ECONOMICALLY POLICY WILL SWITCH TOWARD EMPLOYMENT AND GROWTH INFLATION IS CONQUERED HE SAYS RATES WILL COME DOWN ALL ACROSS EUROPE SALOMON IS EMPHASIZING INVESTMENTS IN SHORTTERM MATURITIES IN EUROPE BECAUSE IT THINKS SHORTTERM RATES WILL FALL FASTER THAN BOND YIELDS MR KYPRIANOU SAYS THE FIRM IS PARTICULARLY BULLISH ON SPAIN AND SWEDEN RATES ON ONEYEAR MATURITIES IN SPAIN COULD FALL FROM AROUND 10 CURRENTLY TO 8 OR 9 BY YEAR END HE SAYS IN SWEDEN SHORTTERM INTEREST RATES COULD FALL AS MUCH AS 20 PERCENTAGE POINTS FROM SLIGHTLY MORE THAN 7 NOW HE SAYS 9307060047 930706 NEW YORK CITY TO UNVEIL PLANS TO REDUCE DEFICITS BY LYNN K ADLER SPECIAL TO THE WALL STREET JOURNAL NEW YORK NEW YORK CITY FACING SUBSTANTIAL PROJECTED BUDGET GAPS IN FISCAL 1995 AND IN SUBSEQUENT YEARS WILL UNVEIL NEW PLANS AIMED AT REINING IN THOSE SHORTFALLS IN THE NEXT WEEK OR SO STANDARD & POOR'S CORP SAID IT WOULD MAINTAIN ITS SINGLEAMINUS CREDIT RATING WITH A NEGATIVE OUTLOOK ON 204 BILLION OF NEW YORK CITY GENERAL OBLIGATION BONDS S&P'S RATINGS DECISION QUELLED WIDESPREAD MARKET TALK THAT AN S&P DOWNGRADE WAS IMMINENT S&P SAID THE CITY HAS IDENTIFIED ADDITIONAL GAPCLOSING MEASURES THAT HAVE RECURRING VALUE AND WILL REDUCE NEXT YEAR'S BUDGET GAP OF 19 BILLION BY APPROXIMATELY 400 MILLION THOSE MEASURES WILL BE REVEALED IN THE CITY'S NEXT MODIFIED FINANCIAL PLAN TO BE PRESENTED WITHIN THE NEXT FEW WEEKS S&P SAID THE PHRASE RECURRING VALUE IS PARTICULARLY IMPORTANT MUCH OF THE CRITICISM OVER THE CITY'S BUDGET PLANS VOICED BY ANALYSTS AND OFFICIALS INCLUDING NEW NEW YORK STATE COMPTROLLER H CARL MCCALLHAS TARGETED VARIOUS ONESHOT SAVINGS METHODS SUCH ONETIME MEASURES WILL DO LITTLE TO ADDRESS THE CITY'S LIKELY HUGE FUTURE BUDGET GAPS THEY MAINTAIN WE'RE CONSTANTLY REDOING AND DEVELOPING NEW PLANS SAYS MICHAEL GEFFRARD DIRECTOR OF PUBLIC FINANCE OFFICE OF THE DEPUTY MAYOR FOR FINANCE AND ECONOMIC DEVELOPMENT WE'VE BEEN WORKING ON THE PROJECTED OUTYEAR BUDGET GAPS FOR SOME TIME AND WILL CONTINUE TO DO THAT WE'LL SEE SOME ANNOUNCEMENTS IN THE NEXT WEEK OR SO HE DECLINED TO PROVIDE ADDITIONAL DETAILS OF THE PLANNED MEASURES PROJECTED DEFICITS ARE 17 BILLION FOR FISCAL 1995 22 BILLION FOR FISCAL 1996 AND 26 BILLION IN FISCAL 1997 ACCORDING TO THE CITY COMPTROLLER'S OFFICE NEW YORK CITY'S BUDGET FOR FISCAL 1994 WHICH BEGAN JULY 1 IS BALANCED BUT WE OBVIOUSLY HAVE A LOT OF WORK TO DO AHEAD OF US SAYS MR GEFFRARD THE CITY PUBLIC FINANCE DIRECTOR IN 1995 AND BEYOND PROJECTED BUDGET GAPS ARE LARGE AS EVERYONE KNOWS AND REPRESENT SOME SIGNIFICANT BUT CLEARLY MANAGEABLE CHALLENGES MR GEFFRARD MAINTAINS THAT THE CITY HAS IN THE PAST GRAPPLED AND CONQUERED CONSIDERABLE PROJECTED DEFICITS WITH THAT PRECEDENT WE'RE QUITE CONFIDENT WE WILL ADDRESS THEM PROJECTED FUTURE BUDGET GAPS AND ADDRESS THEM QUICKLY HE ADDS DESPITE THE CITY'S HISTORY OF SUCCESSFULLY BALANCING ITS YEARLY BUDGET S&P SAID THAT FURTHER PROGRESS IN REDUCING THE PROJECTED OUTYEAR BUDGET DEFICITS IS NECESSARY FOR THE CITY TO MAINTAIN ITS CURRENT RATING RATINGS DOWNGRADES CAN BE EXPENSIVE FOR STATES AND CITIES BECAUSE INVESTORS DEMAND HIGHER YIELDS ON DEBT ISSUED BY LOWERRATED CREDITS ALSO SOME INSTITUTIONAL ACCOUNTS ARE PROHIBITED FROM BUYING SECURITIES FROM ALL BUT THE HIGHER INVESTMENTGRADE CREDIT RATINGS MOODY'S INVESTORS SERVICE INC RATES NEW YORK CITY'S GENERAL OBLIGATION BONDS BDOUBLEA1 OFFICIALS AT THE RATING SERVICE RECENTLY SAID THERE ISN'T ANY PLAN TO ALTER THAT RATING IN THE NEAR TERM 9307060046 930706 MEDIA LOGIC INC'S SENIOR EXECUTIVES PLAN TO SELL SHARES BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL SIX MONTHS AGO MEDIA LOGIC INC ASSURED INVESTORS IN A STATEMENT THAT ITS SENIOR EXECUTIVES DIDN'T HAVE ANY INTENTION OF MAKING MAJOR SALES OF MEDIA LOGIC COMMON STOCK IN THE FORESEEABLE FUTURE TIMES CHANGE TODAY THE COMPANY PLANS TO PRICE AN OFFERING OF 1225000 SHARES INCLUDING 225000 SHARES OFFERED BY ITS TOP THREE OFFICERS AFTER THE OFFERING THERE WILL BE ABOUT 4882000 SHARES OUTSTANDING INVESTORS ARE NERVOUS SHORTSELLERS ARE CIRCLING AND THE STOCK SLIPPED 375 CENTS FRIDAY TO 13875 ON THE AMERICAN STOCK EXCHANGE AND HAS FALLEN FROM A HIGH OF 21 IN MARCH IT'S BEEN A WILD RIDE JUST THREE YEARS AGO THE STOCK WAS TRADING AT 69 CENTS ADJUSTED FOR STOCK SPLITS BUT THE STOCK COULD BE HEADED THAT DIRECTION AGAIN SOME ANALYSTS SAY MEDIA LOGIC A MAKER OF MACHINES THAT TEST FLOPPY DISKS RODE A WAVE OF EXPLOSIVE GROWTH OVER THE PAST THREE YEARS AS DISK MAKERS RETOOLED FOR 35INCH DISKS AND USED THE COMPANY'S EQUIPMENT TO TEST AND CERTIFY QUALITY ON THE PRODUCTION LINE SALES SOARED TO 213 MILLION IN THE YEAR ENDED MARCH 31 FROM 86 MILLION IN FISCAL 1992 WHILE NET ROSE FOURFOLD TO 43 MILLION OR 101 A SHARE NOW COMPETITORS ARE MOVING INTO THE MARKET JUST AS GROWTH IS BEGINNING TO SLOW SAYS FECHTOR DETWILER ANALYST BRIAN KRITZER MR KRITZER SAYS THE INDUSTRY IS AWASH IN FLOPPY DISKS WITH THE SHORTAGES OF RECENT YEARS REPLACED BY GROWING OVERCAPACITY DRIVING DOWN PRICES AND SLOWING THE MARKET FOR MEDIA LOGIC'S PRODUCTS AT THE SAME TIME SOFTWARE MAKERS LIKE MICROSOFT CORP THE LARGEST BUYERS OF FLOPPY DISKS ARE MOVING THEIR PROGRAMS ONTO COMPACT DISKS NOT FLOPPIES IF THAT WEREN'T ENOUGH MEDIA LOGIC FACES A SUIT IN FEDERAL DISTRICT COURT IN PORTLAND MAINE ALLEGING FRAUD AND FAILURE TO PAY ROYALTIES DUE LAUDHOLM INC WHICH CLAIMS IT IS OWED SIGNIFICANT PAYMENTS FOR MAKING A DISKLOADING MACHINE FOR MEDIA LOGIC THE DISPUTE WITH LAUDHOLM WASN'T DISCLOSED IN THE ORIGINAL OFFERING PROSPECTUS ALTHOUGH AN AMENDMENT WAS FILED LAST WEEK AFTER INVESTORS BEGAN ASKING ABOUT IT THE COMPANY HAS TOLD INVESTORS THAT THE SUIT IS FRIVOLOUS AND ISN'T MATERIAL BECAUSE ITS LIABILITY IS LESS THAN 100000 BUT THAT ISN'T WHAT THE SUIT SAYS LAUDHOLM'S ATTORNEY DANIEL LILLEY OF PORTLAND SAYS IF OUR ALLEGATIONS ARE PROVEN THERE IS A LIABILITY OF AT LEAST SEVERAL MILLIONS OF DOLLARS MEDIA LOGIC EXECUTIVES DIDN'T RETURN REPEATED TELEPHONE CALLS IN THE OFFERING DAVID R LENNOX CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL SELL 125000 SHARES DECREASING HIS STAKE IN THE COMPANY TO 164 FROM 238 KLAUS J PETER EXECUTIVE VICE PRESIDENT WILL SELL 75000 SHARES AND PAUL M O'BRIEN CHIEF FINANCIAL OFFICER WILL SELL 25000 SHARES 9307060045 930706 LEISURE & ARTS ET AT HOME MEGASTAR CONFRONTS DESTINY AT 61 BY RAYMOND SOKOLOV BELAIR CALIF SHMUCKO SHE SAID WITH AN AMUSED GLINT IN HER LEGENDARY VIOLET EYES YOU KNOW I'M NOT GOING TO ANSWER THAT ABSOLUTELY I KNEW I WASN'T GOING TO FIND OUT WHETHER SHE SLEPT IN THE NUDE OR GET HER TO COMPARE HER EIGHT MARRIAGES OR TO GIVE ME THE LOWDOWN ON HOW SHE MANAGES TO LOOK SO YOUNG AT THE ONSET OF HER SEVENTH DECADE AND HER FIFTIETHSOMETHING YEAR AS A MAJOR HOLLYWOOD STAR BUT SOMEHOW IT DIDN'T SEEM SPORTING TO SPEND TWO HOURS AT HOME WITH THE WOMAN NOBODY CALLS MRS LARRY FORTENSKY WITHOUT SHOWING A NORMAL HEALTHY INTEREST IN INVADING HER WELLKEPT PRIVACY BUT LET'S NOT EXAGGERATE ELIZABETH ROSEMOND TAYLOR HAS NOT SURROUNDED HERSELF WITH GOONS AND BARBED WIRE THE DISCREET SHEETMETAL GATE TO HER DRIVEWAY IS NO MORE FORBIDDING OR UNBREACHABLE THAN MANY OTHER CLOSED ENTRYWAYS IN THIS OPULENT COMMUNITY OF MANSIONS AND HIGH HEDGES WEST OF BEVERLY HILLS MS TAYLOR DOES HAVE FOUR DOGS BUT THREE OF THEM ARE LAP DOGS AND ONE OF THOSE A SNOWWHITE MALTESE NAMED SUGAR CAN INTIMIDATE THE GERMAN SHEPHERD MR FORTENSKY BROUGHT TO THEIR MARRIAGE TO BE SURE THE COUPLE WERE MARRIED IN ONE OF THE WORLD'S MOST CLOSELY GUARDED PRIVATE DOMICILES MICHAEL JACKSON'S RANCH NEAR SANTA BARBARA EVEN THERE THE MEDIA'S WHIRRING HELICOPTERS MADE IT HARD FOR BRIDE AND GROOM TO CONCENTRATE ON PERSONAL BUSINESS HERE IN LOS ANGELES HOWEVER THEY SOMETIMES VENTURE OUT LIKE OTHER NEWLYWEDS NO DRIVER JUST THEM AND HER ADORING PUBLIC RECENTLY THEY WENT OUT SHOPPING FOR TILES ON ROBERTSON YOU KNOW WHERE ALL THOSE STORES ARE CARS HONKED TIRES SQUEALED SOMEONE SHOUTED HI LIZ' IT WAS ALL VERY FRIENDLY HERE AT HOME THE MOOD IS CASUAL SECURE WITHOUT BENEFIT OF VISIBLE HARDWARE OUT THE WINDOW A WORK CREW IS FINISHING UP A GREENTILED POOL PATIO AND IN THIS COMFORTABLE BUT UNOSTENTATIOUS '50S HOUSE THAT ONCE BELONGED TO NANCY SINATRA SOME VERY PRETTY THINGS ARE QUITE CASUALLY ON VIEW UNDER THE RECTANGULAR BEAMED RECESSED CEILING AMETHYST GEODES COVER A BIG COFFEE TABLE SOME 15 SCRUMPTIOUS VIOLET CLUSTERS AND A DELICATE ANTIQUE AMETHYST LADY'S FLASK A GIFT FROM CHEN SAM LOYAL FRIEND AND PUBLICIST DOES MS TAYLOR COLLECT AMETHYSTS BECAUSE THEY MATCH HER EYES OH NO THEY'RE MY BIRTHSTONE OTHER TREASURES INCLUDE VARIOUS ARTDECO AND ARTNOUVEAU OBJETS LALIQUE GLASS AND SUCH TUCKED AWAY AT ONE END OF THE ROOM HAPHAZARDLY ON SHELVES BEHIND THE COUCH SKYED IN SEVERAL TIERS AND SCRUNCHED TOGETHER WITH A STUDIED LACK OF THEATRICALITY ARE SOME WONDERFUL PAINTINGS THE GROUND RULE IS ONE CAN'T SAY WHO PAINTED THEM MOST ARE BY FRENCH IMPRESSIONISTS SOME ONLY ROUTINE PICTURES BY GREAT ARTISTS THREE OR FOUR ARE STUNNERS INCLUDING A MALE SELFPORTRAIT AND A LANGUOROUS MANNERIST FACE OF A WOMAN BY A PAINTER ACTIVE IN PARIS BETWEEN 1906 AND 1920 PERHAPS THE MOST AFFECTING WORK OF ALL IS A BIG DRAWING OF THREE FIGURES BY ONE OF THE MAJOR ARTISTS OF THE CENTURY IT IS SENSITIVELY HUNG BETWEEN TWO WINDOWS WHERE THE CALIFORNIA LIGHT WON'T HIT IT IN FULL FORCE ONE OF THE FACES IS DONE IN A MUCH DARKER LINE AND JUMPS OUT OF THE PICTURE PLANE MS TAYLOR POINTS THIS OUT SHE COMES BY HER EYE NATURALLY HER FATHER WAS AN ART DEALER IN LONDON THAT WAS LONG AGO IN A SPINNING WORLD AS IT SAYS ON THE OPENING INTERTITLE OF MS TAYLOR'S FIRST MAJOR FILM NATIONAL VELVET IT WAS THAT GENTLY FEMINIST FABLE OF A PUBESCENT BRITISH GIRL'S PLUCKY NEARWIN RIDING HER HORSE WHILE DISGUISED AS A MAN AT ENGLAND'S GRAND NATIONAL STEEPLECHASE THAT VAULTED THE PETITE ACTRESS INTO PERENNIAL CELEBRITY IN 1944 NONE OF HER OTHER MOVIES NOT EVEN THE TWO SHE WON BESTACTRESS OSCARS FOR WHO'S AFRAID OF VIRGINIA WOOLF WITH HER THENHUSBAND RICHARD BURTON AND BUTTERFIELD 8 HAVE STUCK SO PERMANENTLY IN THE PUBLIC MIND MS TAYLOR DID ALL THE HORSEBACK RIDING IN THE FILM HERSELF EXCEPT FOR THE RACE IT TOOK TWO WEEKS OF REPETITIVE SHOOTING TO FILM THAT AND 38 MEN ENDED UP IN THE HOSPITAL SHE GOT TO KEEP THE HORSE WHICH BECAME HER MAIN CONSOLATION IN A CLOISTERED CHILDHOOD AS A CINEMOPPET SHE WENT TO SCHOOL AT THE STUDIO WITH OTHER STARLINGS NONE OF WHOM WERE HER AGE I HAD NO PALS NO ONE TO PLAY WITH AT RECESS WHEN DID SHE FIRST KNOW SHE WAS A STAR I SAW MY INTRINSIC VALUE AT 15 WHEN I TOLD LB MAYER TO GO TO HELL HE HAD SWORN AT MY MOTHER AND USED LANGUAGE I'D NEVER HEARD BEFORE I WAS NOT REPRIMANDED I REFUSED TO APOLOGIZE WHEN NOTHING HAPPENED I REALIZED IT HAD TO BE FOR SOME MONETARY REASON SINCE THEY WEREN'T A BUNCH OF SWEETHEARTS IT WAS THE BEGINNING OF A CYNICAL STREAK IN ME LATELY THOUGH MS TAYLOR HAS THROWN OFF THE CYNICISM SOBERED UP WITH A SECOND STINT AT THE BETTY FORD CENTER WHERE SHE MET HER HUSBAND A CONSTRUCTION WORKER AND STEPPED OUT INTO THE WORLD MILITATING FOR AIDS RESEARCH DEVELOPING A LINE OF PERFUMES WITH ELIZABETH ARDEN AND MOST RECENTLY DESIGNING COSTUME JEWELRY WITH AVON FOR A FAMOUS WEARER OF BIG DIAMONDS SHE IS DISCREETLY ACCESSORIZED WITH BRACELETS AND HOOP EARRINGS DURING MY VISIT ONLY ONE OF THE AVON DESIGNS WILL BE BASED ON HER JEWELRY COLLECTION BUT THAT PIECE IS AMAZING WOULD I LIKE TO SEE IT I WOULD SHE PICKS UP THE PHONE AND MOMENTS LATER A YOUNG MAN APPEARS WITH A GRAY CASE THE SIZE OF A CD JEWEL BOX THIS IS THE REAL THING IT CONTAINS A DIAMOND PENDANT CREATED FOR SHAH JEHAN WHO BUILT THE TAJ MAHAL THE DIAMOND IS FLAT AND PALE THE SIZE OF A QUARTER SET IN RARE GRAY JADE THAT IS INSCRIBED IN PERSIAN MS TAYLOR HOLDS IT UP AND TALKS ABOUT THE EXCITEMENT OF GEMS WITH A HISTORY ALL THE WHILE HOLDING HERSELF STIFFLY BECAUSE OF CONSTANT BACK AND NECK PAIN THIS IS NOTHING NEW FOR HER IT HAS KEPT HER OFF HORSES AND PUSHED HER INTO ADDICTIVE USE OF PAINKILLERS ONE OF THE REASONS SHE WENT TO THE BETTY FORD CENTER HERS HAS BEEN A LIFE OF CHRONIC ILLNESS MANY OPERATIONS TWO CLOSE BRUSHES WITH DEATH IN 1985 SHE DECIDED TO DO SOMETHING ABOUT MAJOR ILLNESS BY COFOUNDING THE AMERICAN FOUNDATION FOR AIDS RESEARCH AMFAR ALL THESE NEW ACTIVITIES GET HER OUT IN THE WORLD MUCH MORE THAN EVER BEFORE SHE PITCHES PERFUME SHE WILL SOON BE HUSTLING HER AVON PRODUCTS MILLIONS HEARD HER SPEAK ABOUT AIDS AT THE OSCARS THIS SPRING NOW SHE IS PLANNING TO TAKE HER MESSAGE TO SOUTH AFRICA AT THE INVITATION OF NELSON MANDELA IT WILL BE VERY HARD FOR ME AS A WHITE WOMAN TO TALK ABOUT IT IT'S A VERY DIFFERENT SITUATION THERE INTO THESE SERIOUS THOUGHTS JUMPS SUGAR AND FROM THE NEXT ROOM SQUAWKS THE VOICE OF MAX AN AFRICAN GRAY PARROT WITH MANY WORDS IN HIS VOCABULARY AND THE ABILITY TO MIMIC EVERYONE IN THE HOUSEHOLD HE SHARES THIS HOUSE NOT ONLY WITH DOGS AND OTHER PARROTS BUT WITH A SPECTACULAR SALTWATER FISH TANK MS TAYLOR WHO USED TO PROWL EARNESTLY THROUGH EDWARD G ROBINSON'S ART COLLECTION CAN NOW PROWL PLAYFULLY AMONG HER OWN FAMILIAR POSSESSIONS THIS FAMOUS CLOTHESHORSE MEETS THE PRESS IN A WAGGISH YELLOW JERSEY THAT READS KISSING A SMOKER IS LIKE LICKING AN ASHTRAY WHEN REMINDED THAT RONALD REAGAN IS A NEIGHBOR ON ONE OF BELAIR'S WINDING ROADS SHE QUIPS YES HE IS ROUND THE BEND SO TO SPEAK ASKED WHY THE VERY LARGE COPPER BIRD CAGE IN THE LIVING ROOM IS EMPTY SHE SAYS WITH A WILDEYED GRIN BECAUSE IT'S FOR ME WHEN I'M BAD THEY PUT ME IN IT AND I SAY FEED ME FEED ME BUT SHE IS NOT BAD NOW LIZ IS GOOD AND SHE IS FEEDING HERSELF VERY PRUDENTLY TO STAY IN FIGHTING TRIM FOR THE SERIOUS WORKING AND FUN AHEAD