NEW YORK INVESTORS BECAME A BIT MORE WARY OF THE OUTLOOK FOR DOMESTIC CLOSEDEND STOCK AND BOND FUNDS IN THE SECOND QUARTER DISCOUNTS ON US STOCK FUNDS WIDENED SLIGHTLY AND PREMIUMS ON BOND FUNDS SHRANK BUT OVERSEAS CLOSEDEND FUNDS WERE MORE FAVORED BY INVESTORS AS THEIR DISCOUNTS NEARLY EVAPORATED IN THE QUARTER ACCORDING TO LIPPER ANALYTICAL SERVICES CLOSEDEND FUNDS ARE INVESTMENT COMPANIES THAT TRADE ON STOCK EXCHANGES THEY RESEMBLE REGULAR OPENEND MUTUAL FUNDS IN THAT THEY ARE A MANAGED PORTFOLIO OF INVESTMENTS BUT UNLIKE MUTUAL FUNDS WHICH ARE BOUGHT AND SOLD AT NET ASSET VALUE THE PRICE OF CLOSEDEND FUNDS CAN VARY WIDELY FROM THE UNDERLYING PORTFOLIO'S VALUE AS INVESTORS BID THE SHARES UP AND DOWN FREQUENTLY THESE FUNDS SELL BELOW THE VALUE OF THEIR INVESTMENTS A CONDITION CALLED SELLING AT A DISCOUNT OCCASIONALLY THE FUNDS SELL FOR MORE THAN THE PERSHARE VALUE OF THEIR INVESTMENTS OR AT A PREMIUM IN THE SECOND QUARTER THROUGH JUNE 25 DOMESTIC STOCK FUNDS SOLD AT A DISCOUNT OF 35 ON AVERAGE WIDER THAN THE 17 DISCOUNT AT THE END OF THE FIRST QUARTER FOREIGN EQUITY FUNDS' DISCOUNT NARROWED FROM 12 AT THE END OF MARCH TO 01 TOWARD THE END OF JUNE 9307060043 930706 QUARTERLY MUTUAL FUNDS REVIEW INITIAL PUBLIC OFFERINGS OF CLOSEDEND FUNDS ROSE 157 IN PERIOD NEW YORK INVESTORS BOUGHT 42 BILLION OF INITIAL PUBLIC OFFERINGS OF CLOSEDEND FUNDS IN THE SECOND QUARTER THAT WAS UP 157 FROM THE AMOUNT OF CLOSEDEND NEW ISSUES IN THE 1992 SECOND QUARTER ACCORDING TO LIPPER ANALYTICAL SERVICES MOST OF THE NEW ISSUES WERE OF CLOSEDEND BOND FUNDS MUNICIPAL BOND FUND IPOS TOTALED 23 BILLION UP 8 FROM THE YEAREARLIER PERIOD BUT THE SIZE OF THE AVERAGE NEW ISSUE DECLINED SHARPLY AS THE SECOND QUARTER OF 1993 SAW 34 NEW MUNICIPAL FUND ISSUES COMPARED WITH 11 A YEAR EARLIER THE SHRINKING SIZE SUGGESTS TO SOME PEOPLE THAT THE MARKET FOR THESE FUNDS IS GETTING SATURATED TWENTYFIVE OF THE NEW ISSUES WERE SINGLESTATE FUNDS FIVE NEW ISSUES OF TAXABLE BOND FUNDSA MIX OF JUNKBOND FUNDS AND MORTGAGETERM TRUSTS CAME OUT IN THE SECOND QUARTER RAISING 17 BILLION JUNK BONDS ARE THE SPECULATIVE DEBT ISSUED BY COMPANIES WITH BELOWINVESTMENTGRADE RATINGS MORTGAGETERM TRUSTS INVEST IN MORTGAGE SECURITIES THAT MATURE AT A SPECIFIED DATE STOCK FUND ISSUANCE DROPPED SHARPLY FROM THE YEAREARLIER PERIOD ONLY ONE CLOSEDEND STOCK FUND WENT PUBLIC IN THIS YEAR'S SECOND QUARTER A 91 MILLION PREFERRED DIVIDEND FUND A YEAR AGO FIVE COUNTRY FUNDS RAISED 298 MILLION CLOSEDEND FUNDS LIKE ORDINARY OPENEND MUTUAL FUNDS ARE POOLS OF MANAGED SECURITIES BUT THEIR SHARES ARE TRADED PUBLICLY RATHER THAN BEING BOUGHT AND SOLD BY THE FUNDS' DISTRIBUTORS 9307060042 930706 QUARTERLY MUTUAL FUNDS REVIEW BROKERS FIND FUNDS ARE TOUGHER TO SELL IN SOME PLACES IN US NEW YORK IF YOU'RE A BROKER HERE'S A TIP IT'S TOUGH TO SELL MUTUAL FUNDS TO RESIDENTS OF MARYLAND AND MASSACHUSETTS IN 1992 THOSE WERE THE ONLY TWO STATES WHERE BROKERDISTRIBUTED STOCK AND BOND MUTUAL FUNDS WERE OUTSOLD BY NOLOAD AND LOWLOAD FUNDS WHICH ARE MARKETED DIRECTLY TO THE PUBLIC AND CHARGE LITTLE OR NOTHING IN THE WAY OF FUND SALES COMMISSIONS IN EVERY OTHER STATE BROKERSOLD FUNDS DOMINATED MUTUALFUND SALES ACCORDING TO FIGURES FROM THE INVESTMENT COMPANY INSTITUTE THE TRADE GROUP FOR THE MUTUALFUND INDUSTRY OVERALL BROKERSOLD FUNDS NOTCHED UP GROSS SALES OF 215 BILLION IN 1992 OR 63 OF THE TOTAL COMPARED WITH 128 BILLION FOR NOLOAD AND LOWLOAD FUNDS BROKERS DID ESPECIALLY WELL IN STATES LIKE NEBRASKA AND NORTH DAKOTA WHERE BROKERSOLD FUNDS ACCOUNTED FOR MORE THAN 80 OF SALES MAYBE IN THOSE STATES YOU STILL HAVE TO DO BUSINESS ON A HANDSHAKE SAYS JOHN CAMMACK A VICE PRESIDENT WITH BALTIMORE'S T ROWE PRICE ASSOCIATES A NOLOAD FUND GROUP MAYBE THAT'S WHY THOSE STATES RELY SO MUCH ON FINANCIAL PLANNERS AND BROKERS THE BEST STATE OF ALL FOR BROKERS WAS SOUTH DAKOTA WHERE BROKERSOLD FUNDS CLAIMED A WHOPPING 85 OF SALES BUT IF YOU'RE AN ENTERPRISING BROKER LOOKING FOR EASY PICKINGS SOUTH DAKOTA MAY NOT BE YOUR BEST BET IN 1992 IT ACCOUNTED FOR JUST 0002 OF THE US'S MUTUALFUND SALES 9307060041 930706 TRACKING THE ECONOMY BY ALAN YONAN JR THE AUTO INDUSTRY IS ONE OF THE FEW SECTORS OF THE ECONOMY SHOWING PROMISE IN THE MIDST OF A TENUOUS ECONOMIC EXPANSION SALES OF NORTH AMERICANMADE VEHICLES SO FAR THIS YEAR ARE RUNNING SUBSTANTIALLY AHEAD OF LAST YEAR'S PACE AND ANALYSTS FORESEE CONTINUED IMPROVEMENT THROUGH THE END OF 1993 WHILE VEHICLE SALES DURING THE FIRST 20 DAYS OF JUNE DECLINED SLIGHTLY FROM MAY THEY REMAINED WELL AHEAD OF YEAREARLIER LEVELS SALES FOR THE FINAL 10 DAYS OF JUNE PROBABLY RECOUPED MUCH OF WHAT WAS LOST EARLIER IN THE MONTH SAID BERNARD CAMPBELL AUTO ANALYST FOR DRI MCGRAW HILL BUYER TRAFFIC TENDS TO PICK UP AT THE END OF THE MONTH AS CUSTOMERS TAKE ADVANTAGE OF EXPIRING DEALER SPECIALS HE SAID THE ECONOMIC EXPANSION IS MORE UNAMBIGUOUSLY POSITIVE IN THE AUTO SECTOR THAN ELSEWHERE MR CAMPBELL SAID WE'RE EXPECTING PRETTY HEALTHY PRODUCTION LEVELS FOR THE SECOND HALF OF THE YEAR MUCH BETTER THAN LAST YEAR AND A LITTLE HIGHER THAN THE FIRST HALF OF 1993 HE SAID THE AUTO INDUSTRY HAS HUNG TOUGH DURING THE DIFFICULT ECONOMIC TIMES AS MODERATE INCOME GROWTH LOW INTEREST RATES AND PENTUP DEMAND HAVE KEPT SALES UP MUCH OF THE STRENGTH IN VEHICLE SALES HAS BEEN IN THE LIGHTTRUCK CATEGORY WHICH INCLUDES THE POPULAR MINIVANS LIGHT TRUCKS NOW ACCOUNT FOR MORE THAN 40 OF ALL VEHICLE SALES 9307060040 930706 INTERNATIONAL PROSPECTS FADE FOR JAPAN'S AID ON TRADE ISSUE BY CLAY CHANDLER AND JACOB M SCHLESINGER STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO WHEN LEADERS OF THE WORLD'S INDUSTRIALIZED NATIONS ARRIVE IN TOKYO FOR ECONOMIC SUMMIT TALKS THIS WEEK THEY MAY FIND THEIR HOSTS PREOCCUPIED WITH THEIR OWN PROBLEMS BOTH ECONOMIC AND POLITICAL BADGERING JAPAN INTO RESTRAINING ITS MAMMOTH TRADE SURPLUS WHICH ROSE TO 107 BILLION LAST YEAR RANKED NEAR THE TOP OF THE LIST OF ISSUES THE GROUP OF SEVEN COUNTRIES WERE TO DISCUSS BUT LATELY HOPES OF SECURING MEANINGFUL JAPANESE COOPERATION ON THE TRADE PROBLEM HAVE SEEMED TO FADE AFTER FLEETING SIGNS OF IMPROVEMENT JAPAN'S ECONOMY IS AGAIN LOSING ITS MOMENTUM AND IN TURN ITS APPETITE FOR IMPORTS PARTLY BECAUSE OF THE YEN'S CONTINUED STRENGTH MEANWHILE THE POLITICAL BRAWL THAT BROUGHT DOWN THE GOVERNMENT OF PRIME MINISTER KIICHI MIYAZAWA JUNE 18 MAY STALL SUBSTANTIVE POLICIES AIMED AT RESTORING GROWTH OVER THE WEEKEND THE JAPANESE GOVERNMENT DID REVIVE FALTERING TALKS WITH THE US TO CREATE A NEW FRAMEWORK FOR MANAGING BILATERAL TRADE A TEAM OF US GOVERNMENT NEGOTIATORS WILL MEET IN A HASTILY ARRANGED SESSION HERE TODAY WITH THEIR JAPANESE COUNTERPARTS TO DISCUSS A JAPANESE COMPROMISE PROPOSAL MADE OVER THE WEEKEND THE OFFER SOFTENED TOKYO'S PREVIOUS AVERSION TO SETTING NUMERICAL TARGETS FOR INCREASES IN US IMPORTS INTO JAPAN TODAY'S NIHON KEIZAI SHIMBUN QUOTED PRESIDENT CLINTON AS SAYING IN AN INTERVIEW WITH THE JAPANESE NEWSPAPER THAT JAPAN'S OFFER IS A POSITIVE STEP JAPANESE OFFICIALS SAID THEY HOPE TO REACH SOME SORT OF AGREEMENT BEFORE MR CLINTON LEAVES TOKYO SATURDAY THE PROPOSAL SAYS JAPAN WILL NOW ACCEPT ILLUSTRATIVE CRITERIA MEASURING PROGRESS IN SPECIFIC SECTORS A JAPANESE GOVERNMENT OFFICIAL EMPHASIZED HOWEVER THAT JAPAN IS STILL OPPOSED TO SETTING QUANTITATIVE GOALS AND WON'T ACCEPT ANY FRAMEWORK THAT PERMITS THE US TO INVOKE SANCTIONS IF MEASURABLE PROGRESS ISN'T MADE IT ISN'T CLEAR WHY JAPAN PROPOSED THE COMPROMISE GIVEN THAT US OFFICIALS HAD PUBLICLY GIVEN UP HOPES OF AN AGREEMENT SOON ONE GOVERNMENT OFFICIAL SAID MR MIYAZAWA HOPED TO USE HIS SMOOTH HANDLING OF USJAPAN RELATIONS AS A CAMPAIGN ISSUE IN ANY EVENT A COMPROMISE ON MEASUREMENTS WOULDN'T ADDRESS WHAT MANY OF THE OTHER G7 LEADERS CONTEND IS THE MOST EFFECTIVE MEANS OF REDUCING THE JAPANESE TRADE SURPLUS STIMULATING DEMAND IN JAPAN'S DOMESTIC ECONOMY JAPAN'S ECONOMIC PLANNING AGENCY PREDICTS THE ECONOMY IS HEADED FOR A RECOVERY THIS FALL AND FORECASTS GROWTH OF 33 FOR THE YEAR ENDING MARCH 31 1994 BUT FEW PRIVATE ECONOMISTS SHARE THE GOVERNMENT'S ROSY VIEW MOST ANALYSTS EXPECT JAPAN'S ECONOMY TO POST GROWTH OF 15 TO 25 IN THE CURRENT FISCAL YEAR MANY OF THE ECONOMIC INDICATORS RELEASED DURING THE PAST MONTH INCLUDING INDUSTRIAL PRODUCTION AUTOMOBILE SALES EMPLOYMENT TRENDS AND HOUSING STARTSWERE SHARPLY BELOW EXPECTATIONS PROMPTING MANY ECONOMISTS TO ANNOUNCE DOWNWARD REVISIONS IN THEIR FORECASTS WE'RE STUCK CRAWLING ALONG THE BOTTOM LAMENTS INDUSTRIAL BANK OF JAPAN LTD ECONOMIST KOZO KOIDE IBJ ANALYSTS EXPECT THE ECONOMY TO GROW A MEAGER 06 FOR THE FISCAL YEAR CONDITIONS IN JAPAN'S ECONOMY SAYS MR KOIDE ARE SEVERE IN THE EXTREME IN APRIL THE JAPANESE GOVERNMENT LAUNCHED A 132 TRILLION YEN 12293 BILLION STIMULUS PACKAGE TO JOLT THE ECONOMY BACK TO LIFE US OFFICIALS DESCRIBED THE PROGRAM AS A FIRST STEP BUT DEMANDED ADDITIONAL STIMULUS MEASURES PRIOR TO THE MIYAZAWA GOVERNMENT'S COLLAPSE MOST ANALYSTS WERE PREDICTING AN INCOMETAX CUT OF ABOUT THREE TRILLION YEN SOMETIME THIS FALL NOW MANY OBSERVERS SAY THEY DON'T KNOW WHETHER THE POLITICAL CONFUSION WILL DERAIL THIS INITIATIVE MANY ANALYSTS DO EXPECT A FURTHER CUT IN THE OFFICIAL DISCOUNT RATE TO BELOW THE CURRENT 25 SOMETIME THIS SUMMER DESPITE THE INTERNAL WRANGLING JAPAN MAY CONSENT TO PUTTING A CLAUSE IN THE G7'S ECONOMIC DECLARATION THIS WEEK CALLING FOR TOKYO TO BOOST GROWTH BUT A GOVERNMENT OFFICIAL FAMILIAR WITH THE TALKS PLAYED DOWN THE SIGNIFICANCE OF JAPAN'S AGREEMENT WE CAN'T POSSIBLY BOOST OUR ECONOMY BY RUNNING THE RISK OF INFLATION HE SAID WITHIN THOSE CONDITIONS I SUPPOSE WE WILL PURSUE THE POLICY OF DOMESTIC DEMANDLED GROWTH HE ADDED THAT THE WORLD'S ECONOMIES ARE GETTING MORE INTERDEPENDENT AND THAT JAPAN WON'T TAKE ANY ACTION WITHOUT SIMILAR PLEDGES FROM THE OTHER COUNTRIES EVEN BEFORE THE GOVERNMENT'S COLLAPSE A GROWING NUMBER OF JAPANESE WERE SAYING THERE'S LITTLE PROSPECT FOR DRAWING DOWN JAPAN'S TRADE SURPLUS ANYTIME SOON RYUTARO KOMIYA HEAD OF THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY RESEARCH INSTITUTE SCOFFS AT WASHINGTON'S ATTEMPTS TO REMOVE JAPANESE IMPORT BARRIERS IN SPECIFIC SECTORS HE CONTENDS THAT APPROACH IS LIKE TAKING COLD MEDICINE WHEN YOU HAVE A HIGH FEVER FROM TUBERCULOSIS MR KOMIYA BELIEVES JAPAN'S TRADE SURPLUS ISN'T A PROBLEM AND THAT ONLY BROAD MACROECONOMIC ADJUSTMENTS PRIMARILY THE REDUCTION OF THE US BUDGET DEFICITCAN BRING IT DOWN MANY JAPANESE ECONOMISTS SAY JAPAN'S SURPLUS WILL FALL ONLY WHEN THE POPULATION AGES STARTS SPENDING MORE AND BEGINS SAVING LESS SOMETIME EARLY IN THE NEXT CENTURY 9307060039 930706 WHAT'S NEWS BUSINESS AND FINANCE THE ECONOMY WILL STRENGTHEN IN 1993'S SECOND HALF BUT PROBABLY WON'T BE STURDY ENOUGH TO TRIGGER A SURGE IN EMPLOYMENT ACCORDING TO A WALL STREET JOURNAL SEMIANNUAL SURVEY OF 44 ECONOMISTS WORRIED ABOUT SLUMPING CONSUMER CONFIDENCE AND THE LIKELIHOOD OF HIGHER TAXES BUSINESS LEADERS ARE UNLIKELY TO GO ON A HIRING BINGE THE FORECASTERS SAID ONLY 13000 JOBS WERE CREATED IN JUNE THE LATEST SIGN OF ECONOMIC WEAKNESS THAT FOLLOWS A 215000 RISE IN MAY AND APRIL'S 256000 GAIN THE UNEMPLOYMENT RATE WHICH HAD DECLINED TO 69 IN MAY RETURNED TO 7 CLINTON VOWED TO CONVENE A WORLD JOBS SUMMIT THIS FALL CALLING CHRONIC UNEMPLOYMENT ONE OF THE MOST VEXING PROBLEMS IN THE INDUSTRIALIZED WORLD THE PRESIDENT SAID THAT HIS PURPOSE AT THIS WEEK'S G7 SUMMIT WAS TO CREATE MORE JOBS AT HOME THROUGH EXPANDED TRADE AND INTERNATIONAL COOPERATION INTERNATIONAL STOCK FUNDS GAINED AN AVERAGE 526 IN THE SECOND QUARTER AND 1456 FOR 1993'S FIRST SIX MONTHS US STOCK FUNDS WERE UP 129 FOR THE QUARTER BRINGING THEIR YEARTODATE GAIN TO 458 TAXABLE BOND FUNDS GAINED 261 IN THE LATEST QUARTER CAR MAKERS PLAN SIZABLE PRODUCTION RISES FOR THE THIRD QUARTER REFLECTING CONFIDENCE THAT THE INDUSTRY'S BUDDING RECOVERY CAN GATHER STRENGTH OVERALL GENERAL MOTORS CHRYSLER AND FORD PLAN TO BUILD 1091000 CARS IN THE THIRD QUARTER UP 208 FROM YEAREARLIER LEVELS PEOPLE IN THE INDUSTRY SAY SOME PROPERTY AND CASUALTY INSURERS COULD BE FORCED TO RESTATE 1992 RESULTS FOLLOWING AN SEC PROBE INTO WHETHER THEY MASKED SOME HURRICANE ANDREW LOSSES THOUGH NEW LOSSES WOULD BE OFFSET BY NEW GAINS IN OTHER PERIODS THE ISSUE RAISES QUESTIONS ABOUT INSURERS' UNDERWRITING ABILITY GERMAN PROSECUTORS SAID THEY STUMBLED ONTO DOCUMENTS THAT BOLSTER ACCUSATIONS BY GM'S GERMAN UNIT THAT SOME EXWORKERS TOOK CONFIDENTIAL DATA WHEN THEY LEFT FOR VOLKSWAGEN THRIFT REGULATORS AGREED TO A VENTURE THAT WILL SELL MOST OF A FAILED THRIFT'S REMAINING ASSETS WITH A BOOK VALUE OF 27 BILLION THE AGREEMENT WITH KEYSTONE INC THE FORMER ROBERT M BASS GROUP IS EXPECTED TO SAVE THE FDIC MORE THAN 100 MILLION DART GROUP'S HERBERT HAFT FIRED HIS SON ROBERT AS PRESIDENT SAID PEOPLE FAMILIAR WITH THE SITUATION IN A FURTHER STEP TO DISTANCE THE SON FROM ALL DARTCONTROLLED BUSINESSES DAMON ACCEPTED A 23ASHARE OR 391 MILLION BUYOUT OFFER FROM CORNING AND WITHDREW FROM A DEAL WITH NATIONAL HEALTH LABS AFTER NATIONAL SAID IT WOULDN'T RAISE ITS 16ASHARE BID CHINA POSTPONED PRICE DEREGULATION SLASHED GOVERNMENT SPENDING AND BANNED CAR IMPORTS A BEIJINGCONTROLLED NEWSPAPER REPORTED LILLY'S NEW CHAIRMAN AND CEO RANDALL TOBIAS SAID HE DOESN'T PLAN ANY LAYOFFS AS HE MOVED TO REASSURE EMPLOYEES SHAKEN BY THE OUSTER OF HIS PREDECESSOR AT THE DRUG MAKER TOBIAS ALSO TOLD LILLY EXECUTIVES THAT LILLY'S STRATEGIC DIRECTION WON'T CHANGE BONDS LEHMAN BROTHERS TREASURY INDEX 529166 UP 1267 COMMODITIES OIL 1795 A BARREL OFF 50 CENTS DOW JONES FUTURES INDEX 12379 UP 138 SPOT INDEX 12319 UP 156 DOLLAR 10858 YEN UP 113 16965 MARKS UP 00032 9307060038 930706 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN ITALY HAILED WHAT IT TERMED A HISTORIC WAGE ACCORD WITH UNIONS AND EMPLOYERS THE PACT WHICH APPLIES TO ALL ITALIAN EMPLOYEES AIMS TO CONTROL INFLATION AND UNEMPLOYMENT BY KEEPING EMPLOYERS' COSTS DOWN AND ALLOWING MORE FLEXIBILITY IN HIRING IT REPLACES A SYSTEM THAT LINKED PAY INCREASES TO INFLATION AND MADE FIRING WORKERS ALMOST IMPOSSIBLE UNDER THE NEW ACCORD NATIONALLY STANDARDIZED PAY BOOSTS WILL BE LINKED TO INFLATION TARGETS LETTING THE GOVERNMENT USE PAY TO HELP CONTROL PRICES AND TO PRODUCTIVITY AND PROFITABILITY WITH UNIONS AND EMPLOYERS JOINTLY SETTING PRODUCTIVITY GOALS THE AGREEMENT SETS GUIDELINES FOR ORGANIZING UNION REPRESENTATION AND INTRODUCES A SYSTEM FOR COLLECTIVE BARGAINING THE PACT ALSO LIFTS A LEGAL CLOUD FROM TEMPORARY WORKERS HUNDREDS OF THOUSANDS OF WHOM COULD FLOCK INTO THE INDUSTRIAL AND SERVICES SECTORS A THIRD OF CHINA'S PEARL RIVER DELTA AREA IS IN DANGER OF BEING SWALLOWED BY THE SEA IN THE NEXT 50 YEARS SUBMERGING THE COUNTRY'S MOST ECONOMICALLY ACTIVE REGION THE FINDINGS BY THE CHINESE ACADEMY OF SCIENCE IN CANTON CAUSED ALARM BECAUSE LOSING THE SHENZHEN AND ZHUHAI SPECIAL ECONOMIC ZONES WOULD HURT CHINA'S ECONOMY RESEARCHERS BELIEVE THE AREA IN GUANGDONG PROVINCE WILL SINK 6 TO 8 INCHES IN 20 YEARS AND 20 INCHES IN A HALFCENTURY PROVINCIAL AND ACADEMY OFFICIALS SET UP A PANEL TO COME UP WITH COUNTERMEASURES TURKISH PRIME MINISTER TANSU CILLER WON HER FIRST VOTE OF CONFIDENCE PARLIAMENT ENDORSED HER COALITION GOVERNMENT'S PROGRAM WHICH EMPHASIZES SELLING OFF HUGE STATE ENTERPRISES THE GOVERNMENT UNVEILED PLANS TO PRIVATIZE 20 FORESTRYRELATED FIRMS MRS CILLER WHO SUCCEEDED SULEYMAN DEMIREL HAS VOWED TO ACCELERATE PRIVATIZATION OF THE BLOATED PUBLIC SECTOR WIDELY BLAMED FOR TURKEY'S 66 INFLATION RATE AND 56 BILLION BUDGET DEFICIT MR DEMIREL LAST MONTH SWAPPED THE PRIME MINISTER'S OFFICE FOR THE PRESIDENCY AFTER PRESIDENT TURGUT OZAL DIED IN APRIL BRITISH BROADCASTING CORP MOVED TO PURGE ITS BROADCASTS OF CLICHES JARGON AMERICANISMS POOR TASTE AND BAD GRAMMAR TO IMPROVE ITS RESPECTED USE OF SPOKEN ENGLISH THE BBC REVISED ITS STYLE GUIDE IT ADVISES AVOIDING TIRED PHRASES SUCH AS SHOT IN THE ARM AND LASTDITCH BID IT PREFERS NOW IDEA FIRE NAPPY CHEMIST AND PAVEMENT TO AT THIS MOMENT IN TIME BRAINCHILD BLAZE DIAPER DRUGSTORE AND SIDEWALK THE GUIDE COUNSELS AVOIDING HOPES DASHED SIGH WITH RELIEF TRIGGER SPELL OUT AND ONLY TIME WILL TELL BUT IT ALLOWS THAT SOME AMERICAN WORDS KNOWHOW GIMMICK STUNT AND COMMUTER ADD VIGOR AND DYNAMIC EXPRESSION TO THE LANGUAGE IN THE WAKE OF JAPANESE CORRUPTION SCANDALS THAT HAVE ROCKED THE CONSTRUCTION SECTOR A FEDERATION OF 59 CONTRACTORS AGREED TO BAN CASH DONATIONS TO INDIVIDUAL POLITICIANS CONSTRUCTION FIRMS HAVE REPORTEDLY GIVEN HUGE SUMS TO POLITICIANS IN EXCHANGE FOR FAVORABLE TREATMENT IN GOVERNMENT BIDS AS THE US IS APPLYING PRESSURE TO OPEN JAPAN'S CONSTRUCTION INDUSTRY TO FOREIGN FIRMS JAPANESE AUTHORITIES ARE INVESTIGATING ALLEGED PAYOFFS BY CONTRACTORS TO THE FORMER MAYOR OF SENDAI A NORTHEASTERN CITY IN A PUBLICWORKS JOB LITHUANIA AGREED TO PAY 25 MILLION OF ITS 534 MILLION DEBT TO RUSSIA FOR NATURAL GAS SUPPLIES RUSSIA SUSPENDED GAS SHIPMENTS TO THE BALTIC STATE FOR SEVERAL DAYS LAST WEEK CITING ECONOMIC REASONS THE ACCORD WAS PART OF A LARGER EFFORT TO FORM A FREETRADE SYSTEM WITH RUSSIA TO COVER RUSSIAN PAYMENTS FOR ITS GOODS AND ELECTRICITY PASSING THROUGH LITHUANIA FORMER SOVIET REPUBLICS DEPENDENT ON RUSSIA FOR ENERGY HAVE BEEN HURT BY HIGHER CHARGES FOR ONCESUBSIDIZED SUPPLIES ACKNOWLEDGING THE NEED TO BE REALISTIC ABOUT ITS MUCHTOUTED SIXYEAR PLAN TO PUSH TOWARD DEVELOPEDNATION STATUS TAIWAN DECIDED TO SCALE BACK ITS HUGE PROGRAM FOR INFRASTRUCTURE SPENDING THE PLAN'S FUNDING WAS REDUCED 22 TO 64 TRILLION NEW TAIWAN DOLLARS US245 BILLION WITH SPECIFIC CUTS TO BE DETAILED IN COMING WEEKS THE AX COULD FALL HARDEST ON ROAD PROJECTS DELAYED BY HIGH LAND COSTS AND ON PLANS FOR NEW UNIVERSITIES AND URBAN MASSTRANSIT SYSTEMS TAIWAN INTENDS TO PROCEED WITH MAJOR PROJECTS BUT FUNDING RESTRAINTS WILL FORCE SOME COMPLETION DELAYS AND GREATER RELIANCE ON PRIVATESECTOR PARTICIPATION REVISION OF THE PLAN WHICH ALSO FOCUSES ON POWER PLANTS AND RAILWAYS AND ENVIRONMENTAL PROTECTION REFLECTS A SLOWING ECONOMY THIS YEAR'S GROWTH FORECAST WAS LOWERED TO 63 FROM 7 STILL TAIWAN PLANS TO ACCELERATE SPENDING ON REMAINING PARTS OF THE PLAN FROM 199496 WHEN OUTLAYS COULD TOTAL NT43 TRILLION COMPARED WITH NT21 TRILLION IN THE FIRST THREE YEARS SEA PIRACY IN THE TRIANGLE LINKING CHINA THE PHILIPPINES AND HONG KONG SUBSIDED IN MAY TO ONE REPORTED CASE FROM A JANUARYAPRIL AVERAGE OF ABOUT FOUR A MONTH MARITIME OFFICIALS SAID CHINA HAS STEPPED UP ENFORCEMENT MEXICO EARMARKED ABOUT 500 MILLION FOR CONSTRUCTION OF A 220MILE HIGHWAY BETWEEN THE SOUTHERN STATE OF OAXACA AND MEXICO CITY BY NOVEMBER 1994 PART OF AN EFFORT TO REPLACE OLD CRUMBLING ROADS WITH A NATIONAL HIGHWAY SYSTEM 9307060037 930706 BUSINESS BRIEF ABB ASEA BROWN BOVERI LTD FEDERAL JURY RULES AGAINST COMBUSTION ENGINEERING INC A FEDERAL JURY IN AUGUSTA GA RULED THAT A UNIT OF ABB ASEA BROWN BOVERI LTD ZURICH CAUSED ENVIRONMENTAL DAMAGE AND SHOULD PAY 45 MILLION IN DAMAGES TO HOMEOWNERS IN LINCOLN COUNTY GA ACCORDING TO THE PLAINTIFFS ABB'S COMBUSTION ENGINEERING INC STAMFORD CONN POLLUTED STREAMS IN AN AREA ABOUT 140 MILES EAST OF ATLANTA THROUGH ITS STRIPMINE OPERATIONS AT GRAVES MOUNTAIN THE DAMAGE AWARD INCLUDES 47000 IN COMPENSATORY DAMAGES AND 227000 IN LITIGATION COSTS THE AWARD OF PUNITIVE DAMAGES IS GROSSLY DISPROPORTIONATE WITH THE HARM THE JURY FOUND IN THE WAY OF ACTUAL DAMAGES A SPOKESWOMAN FOR COMBUSTION ENGINEERING SAID WE WILL APPEAL THE AWARD AND PURSUE WHATEVER OTHER LEGAL RIGHTS WE HAVE IN THE MATTER 9307060036 930706 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN FIRMS NEED PRODDING TO IMPROVE WORKPLACES LABOR SECRETARY REICH SAYS THE CLINTON ADMINISTRATION PLANS A WORKPLACE SUMMIT IN CHICAGO FOR 200 COMPANIES LATER THIS MONTH IN PART TO HIGHLIGHT FIRMS THAT INVOLVE WORKERS IN DAILY DECISIONMAKING THERE IS NO WAY TO CREATE A COMPETITIVE INTERNATIONAL ADVANTAGE OTHER THAN THROUGH PEOPLE MR REICH SAID FIRMS ARE DISCOVERING SLOWLY THAT HIGHLY MOTIVATED AND SKILLED EMPLOYEES ARE THE KEY TO LONGTERM PROFITABILITY BUT CHANGE SIMPLY ISN'T HAPPENING FAST ENOUGH THE SECRETARY TOLD THE SENATE LAST WEEK WORKERS' LACK OF TRAINING COUPLED WITH OUTDATED AND ANTAGONISTIC RELATIONS BETWEEN WORKERS AND MANAGEMENT HURT US COMPANIES HIS SOLUTIONS PUBLICIZE PROGRESSIVE COMPANIES PROD WALL STREET TO SEE LINKS BETWEEN WORKPLACE ADVANCES AND PROFITS AND FIND LEGAL FIXES TO PUSH RETICENT CORPORATIONS MR REICH BACKS A BILL THAT WOULD LET HIS AGENCY GIVE GRANTS AND TECHNICAL HELP TO COMPANIES OR UNIONS TO SPREAD THE WORD ABOUT HOW TO INVOLVE WORKERS IN TECHNOLOGICAL CHANGES FEDERAL HELP FOR WORKERS MAY HURT UNIONS A PROFESSOR ARGUES ORGANIZED LABOR CAN CLAIM CREDIT FOR MANY OF THE ADVANCES THAT HAVE IMPROVED THE WORKPLACE THE MINIMUM WAGE SAFER WORKING CONDITIONS AND REASONABLE WORK HOURS BUT SAR LEVITAN DIRECTOR OF THE CENTER OF SOCIAL POLICY STUDIES AT GEORGE WASHINGTON UNIVERSITY ARGUES THAT AS THE CLINTON ADMINISTRATION TAKES SUCH STEPS AS TOUGHER ENFORCEMENT OF EMPLOYMENT RIGHTS AND A HIGHER MINIMUM WAGE UNIONS BECOME LESS RELEVANT THERE ARE ALL SORTS OF ORGANIZATIONS THAT DO THE JOBS THAT UNIONS USED TO DO MR LEVITAN SAYS HE CITES THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION AND THE AMERICAN ASSOCIATION OF RETIRED PERSONS FOR ENHANCING WORKERS' RIGHTS GOVERNMENT REGULATIONS THAT UNIONS BROUGHT ABOUT IRONICALLY ARE NOW REPLACING UNIONS HE SEES THAT ACCELERATING AS MR CLINTON PUTS PEOPLE IN WHO TAKE REGULATIONS MORE SERIOUSLY LAWYERS REASSESS JOBBIAS LAWSUITS IN THE WAKE OF A SUPREME COURT RULING LAST MONTH'S 54 DECISION SAID THAT PROVING AN EMPLOYER LIED IN FIRING OR PASSING OVER AN EMPLOYEE DOESN'T NECESSARILY SHOW DISCRIMINATION LAWYERS SAY THE RULING WILL ENCOURAGE LOWERCOURT JUDGES TO THROW OUT MORE CASES WITHOUT EVIDENCE OF INTENT TO DISCRIMINATE A JUDGE IS MORE LIKELY TO REJECT CHARGES BEFORE A CASE GOES TO A JURY SAYS WASHINGTON LAWYER BARBARA BROWN NEW YORK LAWYER MARTY PAYSON ARGUES THAT PLAINTIFFS' ATTORNEYS NOW WILL LOOK FOR MORE PROOF BEFORE TAKING A BIAS CASE INDEED INTENT IS THE HARDEST THING TO PROVE SAYS RANDI WEINGARTEN COUNSEL AT THE UNITED FEDERATION OF TEACHERS' NEW YORK AFFILIATE STILL DON'T LOOK FOR FEWER SUITS SOME LAWYERS SAY TO CALL THIS A REVOLUTIONARY DECISION WOULD BE AN OVERSTATEMENT SAYS TROY MICH LAWYER GARY KLOTZ CONGRESS COULD BE THE NEXT BATTLEGROUND SAYS CHICAGO LAWYER THOMAS GEOGHEGAN WHO EXPECTS MOVES TO AMEND THE CIVILRIGHTS ACT WHEN IN DOUBT OVERRATE YOURSELF A STUDY ARGUES OVERRATERS OR THOSE WHOSE OPINION OF THEIR WORK IS HIGHER THAN THAT OF THEIR BOSS ARE HAPPIER WITH THEIR JOBS HAVE MORE SELFESTEEM AND HAVE FEWER PHYSICAL COMPLAINTS THAN UNDERRATERS ACCORDING TO BARBARA ILARDI A UNIVERSITY OF ROCHESTER PSYCHOLOGY PROFESSOR TOP FORMER OFFICIALS OF A BIG MARITIME UNION THE MARITIME ENGINEERS BENEFICIAL ASSOCIATION WERE INDICTED ON CHARGES OF THEFT OF 2 MILLION OF UNION FUNDS AND EXTORTION THE INDICTMENT ALSO SAID UNION LEADERS CARRIED OUT ELECTION FRAUD BY SOLICITING BALLOTS FROM UNION MEMBERS AND THEN VOTING THE BALLOTS FOR THEMSELVES NONE OF THE OFFICERS IS STILL IN THE UNION STATE PENSION FUNDS WIN ONE IN NEW YORK STATE APPEALS COURT IN 1990 THE LEGISLATURE ORDERED THE COMPTROLLER TO CHANGE THE METHOD OF CONTRIBUTING TO THE RETIREMENT FUND CUTTING THE AMOUNT BEING SET ASIDE AND GIVING THE STATE MORE MONEY UNIONS REPRESENTING 800000 CITY AND STATE WORKERS SUED CONTENDING THAT THE COMPTROLLER NOT THE LEGISLATURE SHOULD SAY HOW FUNDS ARE CONTRIBUTED TO THE PENSIONS THE APPEALS COURT SIDED WITH THE UNIONS BRAIN DRAIN PUBLIC COLLEGES IN THE SOUTH FIGHT TO KEEP PROFESSORS HIGHER PAY LURES TEACHERS TO PRIVATE COLLEGES AND BETTERFUNDED MIDWEST PUBLIC SCHOOLS AS MANY AS 30 PROFESSORS AT THE UNIVERSITY OF NORTH CAROLINA'S COLLEGE OF ARTS AND SCIENCES GOT HIGHER OFFERS IN THE PAST YEAR COMPARED WITH A DOZEN A YEAR IN THE MID1980S IN FLORIDA ABOUT 30 STATESYSTEM ASSISTANT PROFESSORS HAVE BEEN ENTICED BY HIGHER PAY SOME 60 UNIVERSITY OF SOUTH CAROLINA FACULTY MEMBERS ARE JOBHUNTING SAYS PRESIDENT JOHN PALMS THE COLLEGES FIGHT BACK FLORIDA LETS GRAD STUDENTS AND ADJUNCT PROFESSORS TEACH MORE TO LET PROFESSORS HUSTLE FOR RESEARCH GRANTS CHANCELLOR CHARLES REED SAYS SOUTH CAROLINA OFFERS TRAVEL GRANTS AND CHANCES TO TEACH IN THE HONORS COLLEGE MR PALMS SAYS POACHING THREATENS SUCH PROGRAMS AS INTERNATIONAL BUSINESS AND MARINE SCIENCE THE CHECKOFF THE GRADUATE BUSINESS SCHOOL AT PITTSBURGH GUARANTEES RESUMES OF FIVE TOP CANDIDATES ON A PROSPECTIVE EMPLOYERS' DESK WITHIN 48 HOURS ZOE WHO A ROPER ORGANIZATION POLL SHOWS THAT ONLY 38 OF HOUSEHOLD EMPLOYERS KNOW THAT SOCIAL SECURITY TAXES ARE DUE FOR ANYONE PAID MORE THAN 50 A QUARTER 9307060035 930706 KEYSTONE JOINS FDIC IN SELLING THRIFT'S ASSETS LIMITED PARTNERSHIP INTENDS TO IMPROVE RETURNS FROM FAILED NEW WEST BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE RESOLUTION TRUST CORP AND KEYSTONE INC AGREED TO A VENTURE THAT WILL SELL MOST OF A FAILED THRIFT'S REMAINING ASSETS WITH A 27 BILLION BOOK VALUE THE VENTURE TAKES THE FORM OF A LIMITED PARTNERSHIP BETWEEN THE GOVERNMENT AND KEYSTONE OF FORT WORTH TEXAS FORMERLY THE ROBERT M BASS GROUP INC THE ASSETS CONTRIBUTED BY THE GOVERNMENT TO THE PARTNERSHIP HAVE AN ESTIMATED MARKET VALUE OF 128 BILLION REPRESENTING MOST OF THE REAL ESTATERELATED LOANS HELD BY NEW WEST FEDERAL SAVINGS & LOAN ASSOCIATION STOCKTON CALIF NEW WEST IS OWNED BY KEYSTONE BUT THE FEDERAL DEPOSIT INSURANCE CORP CONTROLS ITS ASSETS THE AIM OF THE VENTURE BRAZOS PARTNERS LP IS TO MAXIMIZE THE RETURN FROM SELLING OFF THOSE ASSETS THE FDIC WILL BE THE MAJORITY LIMITED PARTNER WITH KEYSTONE UNITS AS THE GENERAL PARTNER AND TWO MINORITY LIMITED PARTNERS KEYSTONE AND THE FDIC WILL SHARE THE PROCEEDS OF THE SALES THE FDIC STANDS TO GAIN MOST OF THE MONEY RECOVERED BY DISPOSITION OF THE THRIFT ASSETS AND EXPECTS TO SAVE MORE THAN 100 MILLION UNDER THE NEW ARRANGEMENT COMPARED WITH CONTINUING TO PAY A MANAGEMENT COMPANY TO SELL OFF THE ASSETS GRADUALLY KEYSTONE WHICH WILL INVEST 130 MILLION IN THE VENTURE WILL ALSO MANAGE IT KEYSTONE BENEFITS ONLY TO THE EXTENT THAT THEY PRODUCE BENEFITS FOR THE TAXPAYER AND WILL LOSE IF THEY FAIL TO DO THAT SAID ROGER KORMENDI MANAGING DIRECTOR OF MIDAMERICA INSTITUTE A CHICAGOBASED NONPROFIT THINK TANK THAT ADVISED THE RTC ON THE TRANSACTION THIS STRUCTURE CAN BE USED JUST AS WELL IN THE PRIVATE SECTOR AND WE EXPECT IT TO HAPPEN SAID MR KORMENDI WHO IS PROFESSOR OF BUSINESS ECONOMICS AT THE UNIVERSITY OF MICHIGAN IN THAT INSTANCE REGULATORY AGENCIES TOOK AN UNUSUAL TACK SPLITTING THE FORMER AMERICAN SAVINGS & LOAN ASSOCIATION STOCKTON THE NATION'S SECONDLARGEST THRIFT AT THE TIME INTO TWO ENTITIES ONE IS AMERICAN SAVINGS BANK WHICH HOLDS STRONGER ASSETS SUCH AS SINGLEFAMILY MORTAGES AND CONTINUES TO OPERATE AS A VIABLE S&L THE OTHER IS NEW WEST WHICH HELD FORECLOSED AND OTHER POORLY PERFORMING REAL ESTATE LOANS UNTIL THEY COULD BE SOLD THE GOVERNMENT DIDN'T GUARANTEE NEW WEST A MINIMUM INCOME LEVEL AS IT DID FOR OTHER ACQUIRED S&LS BUT THE 1988 DEAL WAS CRITICIZED BY MANY CONGRESSMEN AS BEING TOO GENEROUS TO BASSOWNED AMERICAN SAVINGS WHICH STARTED SHOWING A GOOD PROFIT AND TOO COSTLY FOR THE GOVERNMENT DUE TO THE FEDERAL AID NECESSARY FOR NEW WEST THE GOVERNMENT INDIRECTLY GUARANTEED AMERICAN SAVINGS CERTAIN INCOME BY BACKING NEW WEST INTEREST PAYMENTS ON NOTES HELD BY AMERICAN SAVINGS THE NEW WEST VENTURE HAS BEEN MARKED BY INEFFICIENCY AND DELAYS IN SELLING OFF ITS ASSETS ACCORDING TO THE MIDAMERICA INSTITUTE NEW WEST'S ASSETS MANY OF THEM SINCE SOLD ORIGINALLY HAD A BOOK VALUE OF MORE THAN 22 BILLION A KEYSTONE SPOKESMAN SAID MIDAMERICA RECOMMENDED THE LIMITED PARTNERSHIP SCHEME WHICH BECAME A MODEL FOR ONE OF THE RTC'S NEWER PROGRAMS FOR DISPOSING OF HARDTOSELL S&L ASSETS AND IS SO FAR THE LARGEST OF THOSE PARTNERSHIP VENTURES UNDER THE BRAZOS PARTNERSHIP KEYSTONE WON'T RECEIVE ANY FEES INSTEAD THE FDIC WILL GET 935 OF THE PROCEEDS FOR UP TO HALF OF THE ESTIMATED VALUE OF THE ASSETS 80 OF THE AMOUNT RECEIVED BETWEEN 50 AND 135 OF THAT VALUE AND 90 OF ANY SUMS RECOVERED ABOVE 135 OF THE ESTIMATED ASSETS' VALUE KEYSTONE WILL KEEP THE REMAINING PERCENTAGES 65 20 AND 10 RESPECTIVELY THIS MEANS THAT KEYSTONE MUST RECOVER 94 OF THE 128 BILLION ESTIMATED VALUE OF THE NEW WEST ASSETS FOR THE PARTNERSHIP IN ORDER TO RECOUP KEYSTONE'S 130 MILLION INVESTMENT AND THAT IT WILL RECEIVE A NET 3 OF ALL RECOVERIES IF THE PROCEEDS FROM SALE OF THE ASSETS AND ANY INCOME MATCH THE ASSETS' ESTIMATED VALUE 9307060034 930706 QUARTERLY MUTUAL FUNDS REVIEW MUTUAL FUND ROLLER COASTER GIVES GLOBAL STOCKPICKERS A WINNING RIDE BY JONATHAN CLEMENTS FOREIGNSTOCK MUTUAL FUNDS ARE BOUNCING BACK AND NOTHING IT SEEMS IS GOING TO STAND IN THEIR WAY FORGET ABOUT JAPANESE POLITICAL TURMOIL CHAOTIC CURRENCY MARKETS AND WORLDWIDE RECESSION INTERNATIONAL FUNDS SHRUGGED OFF ALL THIS UPHEAVAL TO SCORE AVERAGE GAINS OF 526 IN THE SECOND QUARTER AND 1456 FOR 1993'S FIRST SIX MONTHS LEADING THE CHARGE WERE JAPANESE AND CANADIAN STOCK FUNDS WHICH OVER THE PAST THREE MONTHS BEAT OUT EVERY OTHER FUND CATEGORY EXCEPT GOLD MOST OTHER FOREIGNSTOCK FUNDS ALSO NOTCHED UP HEALTHY RETURNS WITH INTERNATIONAL FUNDS OUTPACING DIVERSIFIED US STOCK FUNDS FOR THE SECOND QUARTER IN A ROW HOLDERS OF US STOCK FUNDS STILL HAD SOME REASONS TO CHEER HOWEVER THE FUNDS WERE UP 129 FOR THE PAST THREE MONTHS BRINGING THEIR YEARTODATE GAIN TO 458 IN THE SECOND QUARTER US STOCK FUNDS LAGGED BEHIND TAXABLE BOND FUNDS' 261 QUARTERLY RETURN BUT THE STOCK FUNDS EDGED OUT MONEY MARKET FUNDS WHICH GAINED 063 US STOCK FUNDS ALSO KEPT AHEAD OF THAT GREAT BOGYMAN THE STANDARD & POOR'S 500STOCK INDEX WHICH ROSE JUST 048 IN THE PAST THREE MONTHS MOST STUFF WENT UP BUT IT DIDN'T GO UP A LOT SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER WE'RE PUTTERING ALONG IN A WAY THAT'S VERY INVESTOR FRIENDLY THERE'S BEEN NOTHING TO SCARE CD INVESTORS OUT OF THEIR MUTUAL FUNDS SINCE EARLY 1991 HORDES OF YIELDSTARVED INVESTORS HAVE ABANDONED THE SAFETY OF MONEY MARKET FUNDS AND CERTIFICATES OF DEPOSIT AND INSTEAD PLUNGED INTO STOCK AND BOND FUNDS HOPING TO GET HIGHER RETURNS THE BUYING HAS BECOME EVEN MORE FEVERISH THIS YEAR WITH STOCK AND BOND FUNDS ATTRACTING MORE THAN 50 BILLION EACH IN THE FIRST FIVE MONTHS OF 1993 THIS YEAR'S STRONG FOREIGNFUND PERFORMANCE MARKS THE END OF A PAINFUL SLUMP THAT SAW INTERNATIONAL FUNDS EKE OUT AN AVERAGE ANNUALIZED GAIN OF JUST 38 IN THE FOUR YEARS THROUGH DECEMBER 1992 ACCORDING TO LIPPER ANALYTICAL LIPPER'S PERFORMANCE NUMBERS REFLECT BOTH SHAREPRICE CHANGES AND REINVESTED DIVIDENDS FINANCIAL ADVISERS RECKON FURTHER GAINS LIE AHEAD FOR FOREIGNSTOCK FUNDS WE'VE PUT SOME MORE MONEY INTO HARBOR INTERNATIONAL AND WE'RE ABOUT TO BUY TWEEDY BROWNE GLOBAL VALUE FUND SAYS KURT BROUWER AN INVESTMENT ADVISER WITH SAN FRANCISCO'S BROUWER & JANACHOWSKI WE'RE MAKING A BIG BET ON EUROPE IF YOU LOOK AT THE VALUATIONS OVER THERE COMPARED WITH OVER HERE IT'S JUST THAT MUCH MORE ATTRACTIVE AMONG FUNDS THAT SPECIALIZE IN A SINGLE INDUSTRY SECTOR THE BIG WINNERS WERE GOLD HEALTH CARE NATURAL RESOURCES AND TECHNOLOGY WHILE THE MARKET GAVE A THUMBS DOWN TO ENVIRONMENTAL FINANCIAL SERVICES AND REALESTATE MUTUAL FUNDS WE ARE IN A PERIOD CHARACTERIZED BY VICIOUS GROUP ROTATION SAYS CHARLES CAIN PRESIDENT OF NEW YORK'S CAIN ASSET MANAGEMENT CORP IT'S THE STOCKDUJOUR FUNDOFTHEMONTH AND THEMEOFTHEQUARTER CLUB WE'VE HAD A STRANGE MIXTURE OF MARKET LEADERSHIP INCLUDING GOLD ENERGY AND FOREIGN FUNDS THAT'S BEEN THE DOMINANT RUN IN THE FIRST HALF OF THE YEAR GOLD FUNDS' HEADY RISE THEY SOARED 2995 IN THE QUARTER HAS DELIGHTED LONGSUFFERING GOLD BUGS NOT A BAD YEAR SO FAR CHUCKLES J DAVID EDWARDS CHIEF INVESTMENT OFFICER AT UNITED SERVICES ADVISORS WE NEEDED IT THAT'S SOME RELIEF AFTER A COUPLE OF YEARS OF HORROR HEALTHCARE SPECIALTY FUNDS ONCE THE DARLINGS OF MUTUAL FUND INVESTORS TUMBLED 2121 IN THE 15 MONTHS ENDED MARCH 31 BUT THE FUNDS SNAPPED BACK IN THE PAST QUARTER CLIMBING 654 SOME INVESTMENT ADVISERS ARE BETTING THAT THE DRUG STOCK REBOUND HAS FURTHER TO GO I'VE STARTED TO MOVE INTO NEUBERGER & BERMAN SELECTED SECTORS AND YACTKMAN FUND WHICH HAVE A BIG DRUG POSITION SAYS LEWIS J ALTFEST PRESIDENT OF LJ ALTFEST & CO A NEW YORK INVESTMENT ADVISER I DON'T THINK CLINTON IS GOING TO GET AS MASSIVE A RESTRUCTURING OF HEALTHCARE AS HE WOULD LIKE AND THESE DRUGS ARE BLUE CHIPS THEY'RE QUALITY GROWTH SITUATIONS MEANWHILE SOME THINK THE SELLOFF AMONG FINANCIAL STOCKS MAY BE OVERDONE DIANE VENTUR FINNERTY ONE OF THE BIGGEST TRADERS OF FIDELITY'S SECTOR FUNDS SNAPPED UP SHARES OF FIDELITY SELECTREGIONAL BANKS PORTFOLIO IN EARLY JUNE THEY JUST HAMMERED THAT FUND SAYS MS FINNERTY PRESIDENT OF VENTUR VENTURES INVESTMENT ADVISORY SERVICE A LOCUST VALLEY NY MONEY MANAGER AND NOW IT'S MAKING THIS NICE COMEBACK THE RETURNS GENERATED THIS YEAR BY DIVERSIFIED US STOCK FUNDS THOSE CLASSIFIED AS EQUITYINCOME GROWTHANDINCOME GROWTH CAPITAL APPRECIATION AND SMALLCOMPANY GROWTH MAY SEEM LACKLUSTER ESPECIALLY AFTER FULLYEAR GAINS OF 889 IN 1992 AND 3561 IN 1991 BUT SHELDON JACOBS THINKS MOST INVESTORS SHOULD BE PLEASED WE'RE UP 458 IN 1993 AS OPPOSED TO BEING DOWN AT THIS TIME LAST YEAR NOTES MR JACOBS EDITOR OF THE NOLOAD FUND INVESTOR AN IRVINGTON NY NEWSLETTER I FIND THAT ENCOURAGING DESPITE A 27 ADVANCE IN THE SECOND QUARTER THIS YEAR'S SMALLCOMPANY STOCK FUND PERFORMANCE HAS BEEN DISAPPOINTING TO MANY THE FUNDS GENERATED DAZZLING RETURNS IN 1991 AND 1992 PROMPTING MANY OBSERVERS TO PROCLAIM THAT A PROLONGED REBOUND BY SMALL STOCKS WAS UNDER WAY BUT THIS YEAR SMALLSTOCK FUNDS ARE UP JUST 467 COMPARED WITH 486 FOR THE S&P 500 YOU CAN'T EXPECT THE RALLY TO BE A SERIES OF UNBROKEN GAINS SAYS MORNINGSTAR'S MR REKENTHALER THE FUNDS HAVE KEPT PACE FOR THE PAST SIX MONTHS THEY'RE HAVING A RESPITE BUT THEY'RE NOT LOSING GROUND I DON'T SEE ANY REASON TO THINK THE LONGTERM PROSPECTS FOR SMALLCAPS AREN'T BRIGHT THE MUTUAL FUND PERFORMANCE RACE IS OFTEN CAST AS A CLASH BETWEEN GROWTH AND VALUE GROWTHSTOCK FUNDS BUY COMPANIES WITH RAPIDLY INCREASING PROFITS WHILE VALUE FUNDS FAVOR STOCKS THAT ARE CHEAP COMPARED WITH CURRENT EARNINGS OR CORPORATE ASSETS BUT OVER THE PAST THREE MONTHS THERE WAS NO CLEAR WINNER IN THE BATTLE BETWEEN GROWTH AND VALUE AMONG FUNDS THAT BUY LARGECOMPANY STOCKS THOSE SPECIALIZING IN VALUE STOCKS OUTPERFORMED THOSE THAT BUY GROWTH STOCKS BUT IN THE SMALLSTOCK ARENA IT WAS THE GROWTHSTOCK FUNDS THAT HAD THE UPPER HAND IN THE TABLE THAT ACCOMPANIES THIS ARTICLE THERE'S A CATEGORY LABELED GROWTH THESE FUNDS PURSUE GROWTH OF CAPITAL AS THEIR INVESTMENT OBJECTIVE THEY DON'T NECESSARILY USE THE GROWTHSTOCK INVESTMENT STYLE WHICH FUNDS WILL DO BEST IN THE MONTHS AHEAD MR JACOBS THE NEWSLETTER EDITOR SAYS IT'S A TOUGH MARKET TO CALL BECAUSE THE TRENDS ARE PROVING SO SHORTLIVED WE'RE TELLING PEOPLE TO STAY DIVERSIFIED HE SAYS WE'RE RECOMMENDING PORTFOLIOS THAT HAVE A NUMBER OF DIFFERENT FUNDS WE TRY TO DIVERSIFY AMONG GROWTH AND VALUE WE WANT TO HAVE SOME LARGE MEDIUM AND SMALLCAP FUNDS AND WE TRY TO HAVE AN INTERNATIONAL COMPONENT IN THERE 9307060033 930706 LEVITZ FURNITURE OFFERING BOCA RATON FLA LEVITZ FURNITURE INC SAID IT SOLD 13 MILLION COMMON SHARES AT 14 EACH IN AN INITIAL PUBLIC OFFERING LEVITZ SAID THE STOCK IS LISTED ON THE NEW YORK STOCK EXCHANGE UNDER THE SYMBOL LFI 9307060032 930706 AILEEN INC'S JUNE SALES NEW YORK AILEEN INC A MAKER AND RETAILER OF WOMEN'S APPAREL SAID SALES AT STORES OPEN MORE THAN ONE YEAR FELL 12 IN JUNE FOR THE MONTH THE COMPANY REPORTED SALES OF 5930000 AT 143 STORES COMPARED WITH SALES OF 5850000 AT 124 STORES IN 1992 FOR THE FIRST EIGHT WEEKS OF THE CURRENT FISCAL THIRD QUARTER AILEEN REPORTED SALES OF 121 MILLION UP FROM 114 MILLION LAST YEAR 9307060031 930706 BUSINESS BRIEF CONTINENTAL AG GERMAN TIRE CONCERN'S SALES ARE DOWN 10 FOR THE YEAR GERMAN TIRE MAKER CONTINENTAL AG SAID ITS SALES IN THE FIRST FIVE MONTHS OF THE YEAR TOTALED 37 BILLION MARKS 219 BILLION 10 BELOW THE YEAREARLIER LEVEL ADDRESSING THE COMPANY'S ANNUAL GENERAL MEETING CONTINENTAL CHAIRMAN HUBERTUS VON GRUENBERG SAID THE COMPANY NONETHELESS MADE A PROFIT DURING THE JANUARYTHROUGHMAY PERIOD BARRING A DRASTIC CHANGE IN THE MARKET CONTINENTAL STANDS A GOOD CHANCE OF PRODUCING ANOTHER SATISFACTORY RESULT IN 1993 MR VON GRUENBERG SAID AS PREVIOUSLY REPORTED CONTINENTAL SWUNG TO A GROUP NET PROFIT OF 133 MILLION MARKS IN 1992 AFTER A LOSS OF 128 MILLION MARKS THE YEAR BEFORE ALTHOUGH CONTINENTAL HAS BEEN HARD HIT BY THE SLUMP IN THE AUTO INDUSTRY THE GROUP IS VERY ACTIVE IN THE RECESSIONRESISTANT REPLACEMENTTIRE BUSINESS AND ITS GENERAL TIRE INC US SUBSIDIARY IS SEEING ITS EARNINGS IMPROVE HE ASSERTED 9307060030 930706 CORRECTIONS & AMPLIFICATIONS CLYDE PRESTOWITZ OF THE ECONOMIC STRATEGY INSTITUTE DIDN'T ENDORSE A CARNEGIE ENDOWMENT PANEL'S CRITICISM OF NUMERICAL TARGETS IN TRADE POLICY BASED ON INFORMATION PROVIDED BY THE CARNEGIE ENDOWMENT AN ARTICLE IN SOME OF LAST WEDNESDAY'S EDITIONS INCORRECTLY SAID THAT MR PRESTOWITZ SUPPORTED THAT FINDING THE SAME ARTICLE ALSO INCORRECTLY IDENTIFIED BARRY BOSWORTH OF THE BROOKINGS INSTITUTION AS THE PANEL'S CHAIRMAN HE IS A MEMBER OF THE PANEL BUT THE CHAIRMAN IS STEPHEN BOSWORTH OF THE USJAPAN FOUNDATION JC PENNEY CO PLANS TO OPEN FIVE STORES IN MEXICO WITHIN THE NEXT FOUR YEARS AN ARTICLE FRIDAY ABOUT THE NORTH AMERICAN FREE TRADE AGREEMENT INCORRECTLY SAID THAT THE RETAILER PLANNED TO OPEN THREE STORES MOODY'S INVESTORS SERVICE INC DOWNGRADED 15 MILLION OF DEBT OF WHEATON COLLEGE TO SINGLEA FROM DOUBLEA AN ARTICLE LAST TUESDAY INCORRECTLY SAID 188 MILLION OF DEBT WAS AFFECTED BASED ON INFORMATION SUPPLIED BY MOODY'S THE MOODY'S ANNOUNCEMENT ALSO FAILED TO NOTE THAT SEVERAL RATING CHANGES FOR MASSACHUSETTS COLLEGES REFLECTED A CHANGE IN ITS POLICY CONCERNING COLLATERALIZED BONDS DOW CORNING WRIGHT WHICH WAS ACQUIRED BY WRIGHT MEDICAL TECHNOLOGY INC LAST WEEK WILL CONTINUE TO MARKET SMALLJOINT ORTHOPEDIC IMPLANTS SUPPLIED BY ITS FORMER PARENT DOW CORNING CORP A 5050 VENTURE BETWEEN DOW CHEMICAL CO AND CORNING INC THE MARKETING WILL BE DONE BY WRIGHT WHICH HAS ENTERED INTO A SUPPLY AGREEMENT WITH DOW CORNING AN ARTICLE FRIDAY INCORRECTLY STATED THAT WRIGHT WILL SUPPLY THE DEVICES TO DOW CORNING 9307060029 930706 WHO'S NEWS MANATRON INC MANATRON INC KALAMAZOO MICH JANE MCAULIFF RIX DIRECTOR OF PURCHASING AND CORPORATE QUALITY MANAGEMENT WAS ELECTED TO THE BOARD OF THIS SUPPLIER OF SOFTWARE AND HARDWARE SYSTEMS FILLING A VACANCY 9307060028 930706 BUSINESS BRIEF WMX TECHNOLOGIES INC RUST INTERNATIONAL TO BUY ENCLEAN FOR 449 MILLION A COMPANY CONTROLLED BY WMX TECHNOLOGIES INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE ENCLEAN INC AN ENVIRONMENTAL CLEANING FIRM FOR AN INDICATED 449 MILLION THE COMPANY RUST INTERNATIONAL INC AN ENGINEERING CONSTRUCTION AND ENVIRONMENTAL CLEANUP FIRM IN BIRMINGHAM ALA IS OFFERING 675 FOR EACH SHARE OF ENCLEAN IN HOUSTON A SHARP PREMIUM OVER FRIDAY'S LATE CLOSING OVERTHECOUNTER PRICE OF 250 WMX IN OAK BROOK ILL WAS FORMERLY KNOWN AS WASTE MANAGEMENT INC THE PURCHASE PRICE INCLUDES 5918685 ENCLEAN SHARES PLUS 728000 OPTIONS ENCLEAN STOCK HAS BEEN DEPRESSED RECENTLY ON NEWS OF LOWERTHANEXPECTED REVENUE LOWER MARGINS AND INCREASED INSURANCE EXPENSES IN THE NINE MONTHS ENDED MARCH 31 ENCLEAN POSTED A LOSS OF 43 MILLION OR 72 CENTS A SHARE ON REVENUE OF 779 MILLION THE COMPANIES SAID THE TRANSACTION IS SUBJECT TO A MINIMUM 50 OF ENCLEAN'S SHARES BEING TENDERED AND ANTITRUST CLEARANCE AMONG OTHER THINGS 9307060027 930706 POLITICS & POLICY FOR HOUSESENATE HORSETRADERS FINE BALANCE IS CRUCIAL FOR RIDING AWAY WITH WINNING BILL BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOW MUCH DO 10 EMPOWERMENT ZONES COST PER GALLON OF GASOLINE THE ANSWER MATHEMATICALLY SPEAKING IS ABOUT ONE CENT IN ADDITIONAL TAXES THE POLITICAL CALCULUS HOWEVER ISN'T NEARLY SO NEAT WHEN HOUSESENATE NEGOTIATIONS ON THE CLINTON TAX BILL OPEN NEXT WEEK LAWMAKERS MUST BEGIN MAKING THE TOUGH TRADEOFFS NECESSARY TO FORGE A FINAL PACKAGE THE CRUX OF THE MATTER IS LIKELY TO COME TO THIS HOW MUCH MORE IN ENERGY TAXES MUST THE CONFEREES ADD TO THE SENATE BILL IN ORDER TO AFFORD THE VARIOUS INVESTMENT INCENTIVES AND SOCIAL PROGRAMS SOUGHT BY MANY IN THE HOUSE AND THE CLINTON ADMINISTRATION WITH TOO MUCH IN TAXES THE BILL CAN'T PASS THE SENATE WITH TOO LITTLE IN INVESTMENTS IT CAN'T PASS THE HOUSE YOU'RE REALLY FENCED IN SAYS DEMOCRATIC REP TIM PENNY OF MINNESOTA HORSETRADING OF COURSE IS WHAT ANY LEGISLATIVE CONFERENCE IS ALL ABOUT BUT THIS TIME AROUND THE PROCEEDINGS HAVE BEEN COMPLICATED BY THE VERY SLENDER MARGINS BY WHICH THE SEPARATE HOUSE AND SENATE MEASURES WERE APPROVED THE NARROWNESS OF THE VICTORIES HAS EMBOLDENED A VARIETY OF FACTIONS WITHIN EACH CHAMBER THE BLACK CAUCUS THE DEFICIT HAWKS THE ANTITAX SOUTHERNERS THE GUARDIANS OF MEDICARE THE OILSTATE REPRESENTATIVES ANY ONE OF THESE SPLINTER GROUPS MAY HAVE THE POWER TO BRING DOWN THE BILL AND WITH IT ANY MOMENTUM PRESIDENT CLINTON IS FINALLY BEGINNING TO BUILD IN A SPEECH LAST WEEK MR CLINTON MADE CLEAR SOME OF HIS TOP PRIORITIES HE TALKED ABOUT RESTORING THE PROVISION THAT THE SENATE DROPPED FOR EMPOWERMENT ZONES WHICH WOULD PROVIDE TAX INCENTIVES FOR BUSINESS INVESTMENT IN DEPRESSED NEIGHBORHOODS HE ALSO SINGLED OUT A NUMBER OF OTHER ITEMS THAT WERE PASSED BY THE HOUSE BUT SCALED BACK OR ELIMINATED BY THE SENATE AN INCREASE IN THE AMOUNT OF EQUIPMENT THAT SMALL FIRMS CAN WRITE OFF UPFRONT A CAPITALGAINS TAX BREAK FOR INVESTORS IN SMALL BUSINESSES A PERMANENT EXTENSION OF THE RESEARCH AND DEVELOPMENT TAX CREDIT A TAX BREAK FOR REALESTATE PROFESSIONALS AND RELIEF FOR COMPANIES SUBJECT TO THE ALTERNATIVE MINIMUM TAX THE GRAND TOTAL FOR PUTTING ALL OF THESE PROVISIONS BACK THE WAY THE HOUSE HAD THEM 215 BILLION OVER FIVE YEARS BUT COMING UP WITH THAT KIND OF MONEY WON'T BE EASY EVERY TIME YOU DO SOMETHING TO GAIN A SINGLE VOTE ON THE LEFT THEN YOU MAY LOSE TWO ON THE RIGHT SAYS RUDOLPH PENNER A FORMER DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE AND WHEN YOU DO SOMETHING TO PICK UP ONE ON THE RIGHT THEN YOU MAY LOSE TWO ON THE LEFT ALL CONFERENCES TO ONE DEGREE OR ANOTHER MUST CONTEND WITH SUCH IDEOLOGICAL DIFFERENCES BUT OBSERVERS SAY THEY CAN'T RECALL ANOTHER INSTANCE IN WHICH SO MANY LIBERAL AND CONSERVATIVE COALITIONS HAVE STAKED OUT POSITIONS SO PUBLICLY BEFORE THE PROCEEDINGS HAVE EVEN GOTTEN UNDER WAY THERE ARE MORE CONSTRAINTS THIS TIME THAN I'VE EVER SEEN SAYS PAMELA PECARICH DIRECTOR OF TAX POLICY FOR THE ACCOUNTING FIRM COOPERS & LYBRAND AND FORMERLY A TOP STAFF MEMBER OF THE HOUSE WAYS AND MEANS COMMITTEE MANY FLASHPOINTS ARE CLEAR BESIDES DUMPING THE EMPOWERMENT ZONES PROVISION THE SENATE ALSO CUT MEDICARE SPENDING MORE THAN THE HOUSE DID FOR LIBERALS GAINING GROUND ON THESE TWO ITEMS IS CRUCIAL AND IN MANY EYES THE MOST NATURAL PLACE TO GO FOR THE MONEY IS THE ENERGY TAX WHICH PASSED THE HOUSE IN THE FORM OF A BROADBASED LEVY BEFORE BEING REDUCED IN THE SENATE TO ESSENTIALLY A 43CENTAGALLON GASOLINE AND DIESELFUEL TAX THE TAX ON GASOLINE IS CURRENTLY 141 CENTS RAISING IT BY A PENNY A GALLON WOULD BRING IN ABOUT 1 BILLION RESTORING BOTH THE MEDICARE AND ZONES PROVISIONS TO THE WAY THEY EMERGED FROM THE HOUSE WOULD COST ABOUT 13 BILLION OVER FIVE YEARS THAT SUM COULD BE ATTAINED BY RAISING THE TAX INCREASE ON A GALLON OF GAS FROM 43 CENTS TO ABOUT SEVEN CENTS ROUGHLY WHERE IT WAS AS PART OF THE ORIGINAL BROADBASED CLINTON ENERGY TAX PLAN THAT THE HOUSE APPROVED BUT IT ISN'T CLEAR THAT HOUSE MEMBERS WOULD ACCEPT A SEVENCENT GAS TAX THIS TIME FOR ONE THING MANY HOUSE MEMBERS AGREED TO VOTE FOR THE PACKAGE ONLY WITH THE UNDERSTANDING THAT THE ENERGY TAX WOULD BE SCALED BACK IN THE SENATE FOR ANOTHER PASSING A GAS TAX IS BOUND TO BE TOUGHER THAN WHEN THE LEVY WAS HIDDEN AS PART OF A BROADERBASED MEASURE SUCH COMPLICATIONS HAVE SENT LAWMAKERS SCRAMBLING IN TWO OPPOSITE DIRECTIONS ONE CAMP LED BY DEMOCRACTIC SEN MAX BAUCUS OF MONTANA WANTS TO BROADEN THE ENERGY TAX AGAIN TO MAKE IT HIT MORE TYPES OF CONSUMERS THE OTHER GROUP WHICH INCLUDES AN ASSORTMENT OF HOUSE MEMBERS WANTS TO GET RID OF THE TAX ALTOGETHER WHAT LITTLE REMAINS OF THE ENERGY TAX SHOULD BE DROPPED BECAUSE IT'S AN IMPEDIMENT TO THE PASSAGE OF THE BILL ARGUES DEMOCRATIC REP DAVID OBEY OF WISCONSIN TO MAKE UP FOR IT REP OBEY PROPOSES RAISING INDIVIDUAL AND CORPORATE INCOME TAX RATES INSTEAD BUT THAT GOES AGAINST THE WILL OF WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI WHO CULTIVATED BUSINESS COMMUNITY SUPPORT FOR THE PACKAGE BY PLEDGING NOT TO PUSH THE TOP CORPORATE RATE ABOVE 35 IF THERE'S A MOVE TO RAISE THE RATES I'LL OPPOSE IT PLEDGES THE ILLINOIS DEMOCRAT HIS COUNTERPART ON THE SENATE FINANCE COMMITTEE DANIEL PATRICK MOYNIHAN DEMOCRAT OF NEW YORK IS LIKEWISE AGAINST HIGHER CORPORATE RATES BEYOND EMPOWERMENT ZONES AND HOLDING THE LINE ON MEDICARE THERE ARE OTHER PROVISIONS THAT BOTH THE BLACK CAUCUS AND OTHER URBAN LIBERALS WANT RESTORED PERHAPS FOREMOST AMONG THEM IS THE EARNED INCOME TAX CREDIT FOR THE WORKING POOR THE HOUSE EMBRACING THE CLINTON PLAN WOULD ENHANCE THE CREDIT BY 283 BILLION OVER FIVE YEARS BUT THE SENATE TRIMMED THAT BY 10 BILLION SOME MAINTAIN THAT WITH A LOWER ENERGY TAX THE POOR DON'T NEED AS MUCH RELIEF BUT LIBERALS SAY THE SENATE BILL IS FLAWED BECAUSE IT WOULDN'T ENSURE THAT ALL THOSE WHO WORK FULL TIME AND HAVE CHILDREN ARE LIFTED OUT OF POVERTYAS PRESIDENT CLINTON HAS VOWED TO DO THE FULL INCREASE FOR THE CREDIT SENDS THE RIGHT MESSAGE TO PEOPLE WHO ARE WORKING AND WHO CAN'T FEED THEIR FAMILIES SAYS DEMOCRATIC REP BOBBY RUSH OF ILLINOIS A MEMBER OF THE BLACK CAUCUS WHICH HAS CALLED THE CREDIT ONE OF SEVERAL POINTS OF NONNEGOTIATION FOR ITS PART THE WHITE HOUSE IS PREPARED TO FIGHT FOR ITS PRIORITIES BUT IT'S BEING CAREFUL NOT TO DRAW SUCH HARD LINES PRESIDENT CLINTON REALIZES THAT IF YOU WANT TO BREAK THE GRIDLOCK YOU CAN'T HAVE ALL KINDS OF LITMUS TESTS SAYS GENE SPERLING A TOP OFFICIAL WITH THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL INDEED ON ALL SIDES THERE SEEMS TO BE A RECOGNITION THAT THE MOST IMPORTANT THING IN THE WEEKS AHEAD IS TO FASHION SOME KIND OF COMPROMISE THE REPUBLICANS HAVE ALREADY CHECKED OUT OF THE DEBATE WITH NOT A SINGLE MEMBER OF THE GOP VOTING FOR THE BILL IN EITHER CHAMBER THAT MAKES IT ALL THE MORE INCUMBENT ON THE DEMOCRATS TO COME UP WITH SOMETHING ANYTHING SO THAT THEY CAN DECLARE VICTORY AND WALK AWAY IF NOT THERE COULD BE SERIOUS CONSEQUENCES FOR THE PARTY IN THE 1994 CONGRESSIONAL ELECTIONS AND EVEN THE PRESIDENTIAL ELECTION TWO YEARS LATER THE STAKES ARE SO HIGH CONCLUDES SEN BAUCUS THAT WE'VE GOT TO GET THIS THING PASSED 9307060026 930706 EVERGREEN MEDIA TO BUY STATION IRVING TEXAS EVERGREEN MEDIA CORP SAID IT HAD AGREED TO ACQUIRE CHICAGO RADIO STATION WWBZFM FROM CLOSELY HELD MAJOR BROADCASTING INC CHICAGO FOR 32 MILLION EVERGREEN SAID IT EXPECTED THE TRANSACTION TO BE CONCLUDED IN THE FALL EVERGREEN ALSO SAID IT SOLD A DALLAS RADIO STATION KSNNFM TO CLOSELY HELD ARMADILLO BROADCASTING WALNUT CREEK CALIF FOR 11 MILLION ALL THREE COMPANIES OWN AND OPERATE RADIO STATIONS 9307060025 930706 BUSINESS BRIEF GENERAL ELECTRIC CO ACCOUNTING CHANGE BRINGS ONETIME 1STPERIOD CHARGE GENERAL ELECTRIC CO FAIRFIELD CONN SAID IT WILL RESTATE FIRSTQUARTER EARNINGS TO REFLECT A ONETIME CHARGE OF 862 MILLION OR 101 A SHARE TO REFLECT NEW ACCOUNTING RULES FOR POSTEMPLOYMENT BENEFITS GE SAID THE CHARGE WILL NOT AFFECT ITS CASH FLOW AND ADDED THAT IT EXPECTS TO POST RECORD SECONDQUARTER EARNINGS EXCEEDING THE 153 A SHARE AVERAGE THAT ANALYSTS PREDICTED IN THE SECOND QUARTER OF 1992 GE RECORDED NET INCOME OF 12 BILLION OR 142 A SHARE NET IN THE FIRST QUARTER AFTER THE CHARGE WILL BE 298 MILLION OR 35 CENTS A SHARE FROM 116 BILLION OR 136 A SHARE GENERAL ELECTRIC IS A 622 BILLION ELECTRICAL AND INDUSTRIAL PRODUCTS FINANCIAL SERVICES AND BROADCASTING CONCERN 9307060024 930706 LYONDELL'S REFINERY TO RECEIVE UPGRADE UNDER NEW VENTURE HOUSTON LYONDELL PETROCHEMICAL CO AND CITGO PETROLEUM CORP FORMED A JOINT VENTURE COMPANY THAT WILL UPGRADE LYONDELL'S REFINERY FOR 800 MILLION CITGO A US SUBSIDIARY OF PETROLEOS DE VENEZUELA SA WILL HAVE GUARANTEED ACCESS TO REFINED PRODUCTS AND VENEZUELA WILL HAVE A GUARANTEED MARKET FOR ITS HEAVY CRUDE OIL WHICH REQUIRES A REFINERY SPECIFICALLY ADAPTED TO PROCESS IT INITIALLY TULSABASED CITGO WILL GET A 5 STAKE IN THE NEW COMPANY DURING THE REFINERY EXPANSION AND MODIFICATION AND A 35 INTEREST WITH THE OPTION TO INCREASE TO 50 WHEN THE PROJECT IS COMPLETED LYONDELL WILL RETAIN THE REMAINING INTEREST THE REFINERY UPGRADES INCLUDE NEW COKING HYDROTREATING AND SULFURRECOVERY UNITS A NEW CRUDE DISTILLATION UNIT AND MODIFICATIONS TO THE LARGEST DISTILLATION UNIT THE HOUSTON REFINERY THE NATION'S NINTH LARGEST HAS A CAPACITY OF 265000 BARRELS A DAY WITH THE IMPROVEMENTS THE PROCESSING CAPACITY FOR HEAVY CRUDE WILL INCREASE TO 200000 BARRELS A DAY FROM 130000 BARRELS IN ADDITION THE REFINERY'S OUTPUT WILL INCLUDE MORE LOWSULFUR DIESEL AND REFORMULATED GASOLINE WHICH IS A HIGHERVALUED PRODUCT MIX THE PROJECT WILL BEGIN IN 1994 AND BE COMPLETED IN ABOUT THREE YEARS THE FIRST PHASE LASTING ABOUT TWO YEARS WILL BE FUNDED BY CITGO PHASE TWO WILL BE FINANCED BY BORROWING AND PHASE THREE BY A COMBINATION OF DEBT AND FUNDS FROM CITGO AND LYONDELL A SPOKESWOMAN FOR LYONDELL DECLINED TO SAY HOW MUCH OF THE TOTAL BILL THE COMPANY WOULD BE SHOULDERING IN ADDITION TO FUNDING THE UPGRADES CITGO WILL INVEST AN ADDITIONAL 100 MILLION FOR CAPITAL NEEDS OF THE REFINERY WHILE THE PROJECT IS BEING COMPLETED WILLIAM E HAYNES MOST RECENTLY SENIOR VICE PRESIDENT OF MANUFACTURING AT LYONDELL WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE NEW COMPANY NAMED LYONDELLCITGO REFINING CO LYONDELL'S STOCK PRICE MOVED DOWNWARD IN REACTION TO THE ANNOUNCEMENT THAT THE COMPANY COMPLETED ITS TRANSACTION WITH THE VENEZUELANS IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE LYONDELL'S SHARES CLOSED AT 21375 DOWN 25 CENTS 9307060023 930706 WHAT'S NEWS WORLDWIDE HAITIANS GREETED THE SIGNING OF A UN PEACE PLAN WITH SKEPTICISM THE AGREEMENT SIGNED OVER THE WEEKEND CALLS FOR OUSTED PRESIDENT ARISTIDE TO RETURN TO POWER ON OCT 30 WITH ARMY CHIEF CEDRAS STEPPING DOWN AS HAITI'S LEADER BUT AS PROOF OF THEIR CONTINUING MISTRUST THE TWO MEN NEVER MET DIRECTLY DURING THE NEGOTIATIONS IN NEW YORK AND MANY HAITIANS RESERVED JUDGMENT ON THE ACCORD SAYING THEY FEAR THE MILITARY WON'T HONOR ITS COMMITMENT TO ALLOW ARISTIDE BACK THE 10STEP PEACE PACT PROVIDES FOR PARLIAMENT TO RATIFY ARISTIDE'S CHOICE OF A PRIME MINISTER BEFORE CRIPPLING UN ECONOMIC SANCTIONS ARE DROPPED A UN TEAM LEFT IRAQ AFTER FAILING FOR OVER A MONTH TO OVERCOME THE GOVERNMENT'S REFUSAL TO ALLOW SURVEILLANCE CAMERAS AT WEAPONS SITES THE TEAM'S DEPARTURE HEIGHTENED ANXIETY IN IRAQ ABOUT ANOTHER POSSIBLE ATTACK BY GULF WAR ALLIES THE FIRST US TROOPS ARRIVED IN MACEDONIA AS PART OF A WESTERN EFFORT TO KEEP BOSNIA'S WAR FROM SPREADING THE 20MEMBER ADVANCE TEAM WAS TO BE FOLLOWED BY 20 MORE SOLDIERS TODAY AND THEN THE MAIN GROUP TOTALING ABOUT 260 SOLDIERS POSSIBLY BY THE END OF THIS WEEK THEY WILL SERVE AS PART OF A UN CONTINGENT IN MACEDONIA BOSNIAN SERB AND CROAT FORCES CLOSED IN ON THE KEY GOVERNMENT TOWN OF MAGLAJ IN NORTHCENTRAL BOSNIA WHILE A FUEL SHORTAGE THREATENED TO HALT BREAD PRODUCTION IN SARAJEVO INTERNATIONAL MEDIATOR LORD OWEN SAID MUSLIM LEADERS WERE RUNNING OUT OF TIME TO NEGOTIATE WITH SERBS AND CROATS LAWYERS FOR A MUSLIM CLERIC CHALLENGED EGYPT'S REQUEST TO EXTRADITE HIM FROM THE US EGYPT ASKED FOR SHEIK OMAR ABDELRAHMAN'S EXTRADITION SUNDAY ON CHARGES OF ATTEMPTED MURDER THE CLERIC WHOSE FOLLOWERS HAVE BEEN LINKED TO THE WORLD TRADE CENTER BOMBING IS BEING DETAINED ON CHARGES OF IMMIGRATION LAW VIOLATIONS PRESIDENT CLINTON PLEDGED TO GIVE THE MIDWEST A 12 BILLION PACKAGE OF FLOODRELIEF ASSISTANCE DURING HIS VISIT TO IOWA ON SUNDAY MORE RAIN WAS FORECAST FOR THE MISSISSIPPI VALLEY OVER THE NEXT SEVERAL DAYS IN WINFIELD MO A BROKEN LEVEE CAUSED THE EVACUATION OF OVER 150 FAMILIES TENS OF THOUSANDS OF NIGERIANS ERECTED FLAMING BARRICADES LOOTED SHOPS AND HIJACKED CARS IN LAGOS TO PROTEST THE MILITARY DICTATORSHIP'S VOIDING OF JUNE 12 PRESIDENTIAL ELECTION RESULTS POLICE OFFICERS FIRED TEAR GAS IN AN ATTEMPT TO STEM THE UNREST CLINTON ISSUED A SERIES OF CONTROVERSIAL DECISIONS OVER THE LONG WEEKEND FROM EXTENDING FOR 15 MONTHS THE US BAN ON NUCLEAR TESTING TO REMOVING OBSTACLES TO INTERNATIONAL LENDING TO VIETNAM HE ALSO ACCEPTED A RECOMMENDATION TO CLOSE 130 MILITARY BASES THE UN FIRED THREE USBASED SOMALI TRANSLATORS ACCUSING THE WOMEN OF SECURITY LAPSES THAT PUT US SOLDIERS' LIVES AT RISK IN SOMALIA THE THREE WERE IDENTIFIED AS MEMBERS OF A CLAN LED BY AIDID WHOSE ARREST IS SOUGHT BY THE UN OVER THE JUNE 5 KILLINGS OF 24 PEACEKEEPERS ONE OF THE WOMEN IS ACCUSED OF ATTENDING A RALLY FOR AIDID SOUTH AFRICAN POLICE PUT UP CORDONS IN TWO BLACK TOWNSHIPS NEAR JOHANNESBURG AS CARS AND HOUSES WERE SET AFIRE IN POLITICAL VIOLENCE THAT KILLED MORE THAN 70 BLACKS NATIONWIDE IN THREE DAYS AN ARTILLERY SHELL LANDED NEAR GEORGIAN LEADER SHEVARDNADZE'S CONVOY AS HE VISITED AN EMBATTLED TOWN IN THE SEPARATIST ABKHAZIAN REGION SUNDAY SHEVARDNADZE THE FORMER SOVIET FOREIGN MINISTER WASN'T HURT MEXICO'S RULING PARTY CLAIMED VICTORY IN TWO ELECTIONS FOR STATE GOVERNORSHIPS THE INSTITUTIONAL REVOLUTIONARY PARTY SAID INITIAL RESULTS FROM SUNDAY'S POLLS SHOWED ITS CANDIDATES WOULD WIN IN THE CENTRAL STATE OF MEXICO AND THE EASTERN STATE OF NAYARIT PETE SAMPRAS WON THE WIMBLEDON MEN'S SINGLES TENNIS TITLE SUNDAY DEFEATING FELLOW AMERICAN JIM COURIER THREE SETS TO ONE ON SATURDAY STEFFI GRAF OF GERMANY WON HER FIFTH WIMBLEDON WOMEN'S TITLE BY DEFEATING JANA NOVOTNA A CZECH TWO SETS TO ONE DIED DON DRYSDALE 56 A HALL OF FAME PITCHER FOR THE BROOKLYN AND LOS ANGELES DODGERS IN THE 1950S AND 1960S SATURDAY IN MONTREAL OF A HEART ATTACK FRED GWYNNE 66 STAGE AND SCREEN ACTOR BEST KNOWN FOR HIS PORTRAYAL OF HERMAN MUNSTER IN THE TV SERIES THE MUNSTERS FRIDAY IN TANEYTOWN MD OF PANCREATIC CANCER 9307060022 930706 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED JULY 2 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER AUSTRALIA WILL REDEEM ON AUG 1 1993 ITS 25 YEAR 12 1/8 BONDS DUE AUG 1 2008 MORGAN GUARANTY TRUST CO NEW YORK IS FISCAL AGENT CALIFORNIA WILL REDEEM ON AUG 1 1993 ITS FRANCHISE TAX BOARD BUILDING PROJECT BONDS FIRST INTERSTATE BANK CALABASAS CALIF IS TRUSTEE CRAINVILLE ILL WILL REDEEM ON AUGUST 1 1993 THE FOLLOWING 7 WATER AND SEWER REVENUE BONDS 195000 OF SERIES 1969 AND 56000 OF SERIES 1971 AMALGAMATED BANK OF CHICAGO CHICAGO IS PAYING AGENT HACKETTSTOWN MUNICIPAL UTILITIES AUTHORITY WILL REDEEM ON AUG 2 1993 ITS 6 3/8 1972 SERIES B REVENUE BONDS DUE OCT 1 2011 FIRST FIDELITY BANK NEW JERSEY IS TRUSTEE HIGHLAND PARK ILL WILL REDEEM ON AUGUST 1 1993 270000 PRINCIPAL AMOUNT OF ITS RESIDENTIAL MORTGAGE REVENUE BONDS SERIES 1979 DUE FEB 1 19941999 AND 2009 CONTINENTAL BANK CHICAGO IS CUSTODIAN ILLINOIS ENVIRONMENTAL FACILITIES FINANCING AUTHORITY WILL REDEEM ON AUG 1 1993 ITS SMALL BUSINESS CONTROL REVENUE BONDS SERIES 1981 A2 AND A3 DUE AUG 1 2001 LASALLE NATIONAL TRUST CHICAGO IS TRUSTEE ILLINOIS INDUSTRIAL POLLUTION CONTROL FINANCING AUTHORITY WILL REDEEM ON AUG 1 1993 THE FOLLOWING POLLUTION CONTROL REVENUE BONDS SERIES C 6 5/8 DUE AUG 1 2004 AND 6 3/4 DUE AUG 1 2009 BANKERS TRUST CO NEW YORK IS TRUSTEE MASSACHUSETTS HEALTH & EDUCATIONAL FACILITIES AUTHORITY WILL REDEEM ON AUG 1 1993 480000 PRINCIPAL AMOUNT OF ITS SERIES A 925 REVENUE BONDS MAIDEN HOSPITAL ISSUE DUE AUG 1 2000 SHAWMUT BANK BOSTON IS TRUSTEE MONTREAL URBAN COMMUNITY WILL REDEEM ON AUG 15 1993 ITS 10 SINKING FUND DEBENTURES DUE FEB 15 2000 FIRST INTERSTATE TRUST CO NEW YORK IS SINKING FUND AGENT OHIO AIR QUALITY DEVELOPMENT AUTHORITY WILL REDEEM ON AUG 1 1993 30000 PRINCIPAL AMOUNT OF ITS 8 1/4 POLLUTION CONTROL REVENUE BONDS DUE AUG 1 2000 SOCIETY NATIONAL BANK CLEVELAND IS TRUSTEE OKLAHOMA CLINTON INDUSTRIAL AUTHORITY WILL REDEEM ON AUG 1 1993 ITS 63 1973 FIRST MORTGAGE REVENUE BONDS DUE AUG 1 1998 WACHOVIA BANK OF NORTH CAROLINA WINSTONSALEM NC IS TRUSTEE OMAHA PUBLIC POWER DISTRICT WILL REDEEM ON AUG 1 1993 ITS 6 1/8 ELECTRIC SYSTEM REVENUE BONDS 1977 SERIES B DUE FEB 1 2017 FIRST NATIONAL BANK OF CHICAGO IS TRUSTEE PRESTON COUNTY WVA WILL REDEEM ON AUG 1 1993 70000 PRINCIPAL AMOUNT OF ITS WEST VIRGINIA INDUSTRIAL DEVELOPMENT REVENUE BONDS WESBANCO BANK WHEELING WHEELING WVA IS TRUSTEE PUEBLO COLO WILL REDEEM ON AUG 1 1993 645000 PRINCIPAL AMOUNT OF THE FOLLOWING SINGLE FAMILY MORTGAGE REVENUE BONDS 1978 SERIES A 68 DUE 1998 66 DUE 1994 665 DUE 1995 67 DUE 1996 675 DUE 1997 AND 68 DUE 1999 ALL BONDS ARE DUE ON AUG 1 OF THEIR RESPECTIVE YEARS NORWEST BANK DENVER DENVER COL IS TRUSTEE SUMMIT OHIO WILL REDEEM ON AUG 1 1993 50000 PRINCIPAL AMOUNT OF ITS 8 1/4 INDUSTRIAL DEVELOPMENT REVENUE BONDS DUE AUG 1 2000 SOCIETY NATIONAL BANK CLEVELAND IS TRUSTEE DELMARVA POWER & LIGHT CO WILL REDEEM ON JULY 23 1993 ITS 7 FIRST MORTGAGE AND COLLATERAL TRUST BONDS DUE NOV 1 1998 CHEMICAL BANK NEW YORK IS TRUSTEE FEDERAL NATIONAL MORTGAGE ASSOCIATION WILL REDEEM THE FOLLOWING MEDIUM TERM NOTE ISSUES ON JULY 23 1993 150000000 OF ITS 595 DUE JULY 23 1997 AND ON JULY 26 1993 30000000 OF ITS 823 DUE JAN 24 1997 AND 165000 OF ITS 755 DUE JAN 24 2002 ALSO IT WILL REDEEM ON AUG 2 1993 ITS 85 DEBENTURES DUE AUG 2 1996 FLORIDA POWER & LIGHT CO A UNIT OF FPL GROUP INC WILL REDEEM ON AUG 2 1993 ITS 884 PREFERRED STOCK SERIES L PHILADELPHIA ELECTRIC CO WILL REDEEM ON AUG 1 1993 ALL OF ITS 952 AND 875 1978 SERIES PREFERRED STOCK AND 600000 SHARES OF ITS 950 PREFERRED STOCK 1986 SERIES POTOMAC EDISON CO A UNIT OF ALLEGHENY POWER SYSTEM INC WILL REDEEM ON AUG 1 1993 ITS 47 CUMULATIVE PREFERRED STOCKS SERIES B TOSCO INTERNATIONAL FINANCE NV A UNIT OF TOSCO CORP WILL REDEEM ON AUG 13 1993 ITS 8 CONVERTIBLE SUBORDINATED DEBENTURES DUE 1995 MORGAN GUARANTY TRUST CO OF NEW YORK IS TRUSTEE VIRGINIA ELECTRIC & POWER CO A UNIT OF DOMINION RESOURCES INC WILL REDEEM ON AUG 2 1993 ITS 772 DIVIDEND PREFERRED STOCK 1969 SERIES F MELLON SECURITIES TRANSFER SERVICES NEW YORK IS REDEMPTION AGENT WR GRACE & CO WILL REDEEM ON JULY 30 1993 ITS ZERO COUPON SUBORDINATED NOTES DUE 2006 CHEMICAL BANK NEW YORK IS TRUSTEE 9307060021 930706 CLINTON PLANS SUMMIT IN FALL ON JOBLESSNESS PRESIDENT FLIES TO TOKYO FOR G7 TRADE PARLEY JOBS CREATION IS AIM BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO CALLING CHRONIC UNEMPLOYMENT ONE OF THE MOST VEXING PROBLEMS IN THE INDUSTRIALIZED WORLD PRESIDENT CLINTON SAID HE WILL CONVENE AN INTERNATIONAL JOBS SUMMIT THIS FALL BEFORE FLYING TO TOKYO FOR HIS FIRST MEETING WITH THE LEADERS OF THE GROUP OF SEVEN INDUSTRIALIZED DEMOCRACIES MR CLINTON SAID THAT HIS PURPOSE AT THIS WEEK'S G7 SUMMIT WAS TO CREATE MORE JOBS AT HOME THROUGH EXPANDED TRADE AND INTERNATIONAL COOPERATION AS A STEP TOWARD THOSE GOALS THE PRESIDENT SAID IN A SPEECH HERE THAT HE HAD ASKED HIS TOP ECONOMIC AND LABOR ADVISERS TO INVITE THEIR G7 COUNTERPARTS TO A CONFERENCE IN THE US TO CONSIDER THE CAUSES AND ANSWERS FOR THIS STUBBORNLY HIGH UNEMPLOYMENT WHICH HE CALLED A GLOBAL CRISIS BESIDES THE US THE G7 GROUP OF NATIONS INCLUDES BRITAIN CANADA FRANCE ITALY GERMANY AND JAPAN ON THE TRADE FRONT JAPAN HAS REVIVED THE FALTERING TALKS WITH THE US TO CREATE A NEW FRAMEWORK FOR BILATERAL TRADE BUT HOPES OF SECURING MEANINGFUL JAPANESE COOPERATION ON THE TRADE PROBLEM HAVE SEEMED TO FADE IN THE DAYS LEADING UP TO THIS WEEK'S SUMMIT THE PRESIDENT HAS REITERATED HIS COMMITMENT TO REDUCING INTERNATIONAL TRADE BARRIERS AND COORDINATING ECONOMIC GROWTH STRATEGIES THE TWO TRADITIONAL SUBJECTS FOR AN ECONOMIC SUMMIT BUT IN CONVERSATIONS WITH OTHER HEADS OF STATE INCLUDING GERMAN CHANCELLOR HELMUT KOHL AND BRITISH PRIME MINISTER JOHN MAJOR MR CLINTON ADDED A THIRD ISSUE TO BE DISCUSSED THIS WEEK JOB GROWTH THE PRESIDENT TOLD THE OTHER LEADERS THAT HE WAS DETERMINED TO FIND WAYS TO TRANSLATE GLOBAL ECONOMIC GROWTH INTO MORE JOBS AT HOME AND ABROAD A CONCERN THAT IS THE GENESIS FOR THE JOBS SUMMIT CLINTON ADMINISTRATION OFFICIALS SAID THE JOBS SUMMIT WHICH MAY BE HELD AT CAMP DAVID OUTSIDE OF WASHINGTON IS MEANT TO DISCUSS THE MANY MICROECONOMIC POLICY CHANGES THAT COULD HELP JOB CREATION KEEP PACE WITH ECONOMIC GROWTH THE US IS THE ONLY ONE OF THE G7 COUNTRIES WHERE EMPLOYMENT CONDITIONS HAVE IMPROVED DURING THE PAST YEAR JAPAN'S UNEMPLOYMENT RATE REMAINS JUST OVER 2 BUT THE JOBLESS RATE IN EUROPE IS OVER 10 AND RISING THE SENTIMENT IN MR CLINTON'S SPEECH YESTERDAY WAS IN KEEPING WITH THE MAIN THEME AND CONSTANT PARADOX AS HE EMBARKS ON A TRIP TO ASIA EVEN THOUGH HE IS TRAVELING ABROAD HE WANTS TO RELATE ALMOST EVERYTHING HE DOES TO HELPING US WORKERS AND THE SLUGGISH ECONOMY IN HIS SPEECH TO THE NATIONAL EDUCATION ASSOCIATION FOR EXAMPLE HE CONNECTED HIS EFFORTS OVERSEAS TO IMPROVING THE LOT OF US STUDENTS A FOREIGN SUMMIT WITH ALL ITS PROTOCOL AND INTERPRETERS AND COMMUNIQUES MAY SEEM AWFULLY REMOTE FROM THE WORK YOU DO IN OUR SCHOOLS HE SAID BUT IN FACT THE TWO ARE CLOSELY RELATED HE EXPLAINED THE LINE BETWEEN OUR DOMESTIC AND FOREIGN POLICY HAS COMPLETELY EVAPORATED EVERYBODY'S JOB EITHER DIRECTLY INDIRECTLY IS AFFECTED BY GLOBAL COMPETITION MR CLINTON EVEN TRIED TO HIGHLIGHT THIS CONNECTION WHEN HE TOURED FLOODRAVAGED ELDRIDGE IOWA NEAR THE BANKS OF THE SWOLLEN MISSISSIPPI RIVER LAST NIGHT SITTING ON BALES OF HAY HE TOLD LOCAL FARMERS THAT HIS EFFORTS TO EXPAND US AGRICULTURAL EXPORTS TO JAPAN AND ELSEWHERE WAS MEANT TO IMPROVE THEIR DIFFICULT LOT HE ADDED THAT HE INTENDED TO RELEASE HUNDREDS OF MILLIONS OF DOLLARS IN EMERGENCY ASSISTANCE TO THE FLOODAFFECTED AREAS WE ARE TRYING UP THERE TO BE RESPONSIVE TO BE HELPFUL HE SAID I'M SORRY ABOUT ALL THE WATER HERE IN SAN FRANCISCO MR CLINTON PLAYED DOWN EXPECTATIONS FOR MAJOR BREAKTHROUGHS IN TOKYO BUT HE AND HIS AIDES STILL HOPE THAT TRADE NEGOTIATORS WILL MAKE SUBSTANTIAL PROGRESS IN TALKS AIMED AT LOWERING TARIFFS ON INDUSTRIAL PRODUCTS SO THAT THE HEADS OF STATE WILL HAVE SOMETHING TO CROW ABOUT LATER THIS WEEK US TRADE REPRESENTATIVE MICKEY KANTOR AND HIS COUNTERPARTS FROM CANADA JAPAN AND THE EUROPEAN COMMUNITY ARE TO HOLD WHAT COULD PROVE TO BE A PIVOTAL NEGOTIATING SESSION TODAY IN TOKYO IF THE G7 NATIONS CAN REACH A COMPROMISE ON THE THORNY MARKETACCESS ISSUES THEY WILL SUBSTANTIALLY IMPROVE THE CHANCES OF COMPLETING THE LONGSTALLED URUGUAY ROUND OF TRADE TALKS BY YEAR'S END MR CLINTON NOTED THAT THIS WEEK'S TRIP IS NOT ONLY HIS FIRST G7 SUMMIT BUT ALSO HIS FIRST VISIT TO ASIA AS PRESIDENT IN A SPEECH SCHEDULED AT A JAPANESE UNIVERSITY WEDNESDAY MR CLINTON WILL DISCUSS THE US VIEW TOWARD ASIA WHERE THERE ARE DOUBTS BOTH ABOUT US TRADE POLICIES AND THE US MILITARY COMMITMENT TO THE REGION 9307060020 930706 BUSINESS BRIEF PHELPS DODGE CORP CHINO MINES UNIT REACHES TENTATIVE LABOR AGREEMENTS PHELPS DODGE CORP PHOENIX SAID CHINO MINES CO REACHED TENTATIVE AGREEMENTS ON NEW LABOR CONTRACTS WITH UNIONS REPRESENTING ABOUT 750 EMPLOYEES AT CHINO'S COPPER MINE MILL AND SMELTER NEAR SILVER CITY NM THE MINING CONCERN OWNS TWOTHIRDS OF CHINO WITH THE REMAINING STAKE HELD BY A UNIT OF MITSUBISHI CORP A MANUFACTURING MINING AND IMPORTEXPORT CONCERN IN TOKYO PHELPS DODGE SAID THE AGREEMENTS CALL FOR AN INITIAL 35CENTANHOUR INCREASE IN BASE WAGES FOLLOWED BY AN AVERAGE 35CENTANHOUR INCREASE IN THE SECOND YEAR AND AN AVERAGE 25CENTANHOUR INCREASE IN THE THIRD YEAR IT ALSO CALLS FOR WAGE INCREMENTS BASED ON COPPER PRICES AND IMPROVEMENTS IN PENSION LIFE INSURANCE AND OTHER BENEFITS THE COMPANY SAID EMPLOYEES WILL VOTE ON RATIFICATION TOMORROW AND THE AGREEMENTS WOULD BE EFFECTIVE JULY 1 IF RATIFIED BY THURSDAY THE COMPANY SAID 9307060019 930706 INTERNATIONAL BRIEF CIE DES MACHINES BULL FRENCH COMPUTER CONCERN TO CUT 6500 JOBS BY 1995 FRENCH COMPUTER MAKER CIE DES MACHINES BULL SAID IT PLANS TO ELIMINATE 6500 POSITIONS FROM ITS WORLDWIDE OPERATIONS BY THE END OF 1994 THE FIGURE INCLUDES A 3000JOB REDUCTION PLAN ANNOUNCED IN MARCH FOR 1993 AND 1994 BULL THUS HAS DECIDED TO LOP OFF ANOTHER 3500 POSITIONS BY THE END OF NEXT YEAR THE STATEOWNED COMPANY SAID THE TOTAL REDUCTION REPRESENTING A CUT OF ABOUT 18 FROM THE YEAREND 1992 WORK FORCE OF 35175 WILL INCLUDE VOLUNTARY DEPARTURES AND REASSIGNMENTS AS WELL AS LAYOFFS BULL HAD CONFIRMED FRIDAY THAT IT WOULD ANNOUNCE STIFF CUTBACKS THIS WEEK THE AUSTERITY MEASURES FOLLOW A LOSS OF 472 BILLION FRANCS 8246 MILLION FOR BULL IN 1992 WHICH BROUGHT THE GROUP'S THREEYEAR LOSS TOTAL TO ROUGHLY 15 BILLION FRANCS 9307060018 930706 TECHNOLOGY BRIEF FUJITSU LTD PRICES OF SUPERCOMPUTERS TO BE REDUCED BY UP TO 30 FUJITSU LTD SAID IT IS SLASHING THE PRICES OF ITS SUPERCOMPUTERS BY 2030 TO INCREASE COMPETITIVENESS WITH OTHER DOMESTIC AND FOREIGN MAKERS THE MOVE LARGELY WAS PROMPTED BY THE CHEAPENING OF KEY PARTS SUCH AS SEMICONDUCTORS AND IS AIMED AT BOOSTING FUJITSU'S POSITION IN BIDDING FOR GOVERNMENT PROCUREMENT OF SUPERCOMPUTERS A SPOKESMAN FOR THE JAPANESE COMPUTER MAKER SAID JAPAN'S STIMULATIVE SUPPLEMENTARY BUDGET PASSED IN JUNE PROVIDES FOR THE PURCHASE OF 11 SUPERCOMPUTERS DURING THE FISCAL YEAR THROUGH NEXT MARCH 31 THE SPOKESMAN SAID AMONG THE UNITS INVOLVED ARE 12 MODELS OF THE STAPLE VPX SERIES AND 10 MODELS OF THE VPP500 SERIES OF PARALLEL PROCESSING MACHINES OTHER DOMESTIC SUPERCOMPUTER MAKERS ALREADY HAVE CUT PRICES 9307060017 930706 MARKETSCAN GERBER STUMBLES IN A SHRINKING MARKET BY CARL QUINTANILLA STAFF REPORTER OF THE WALL STREET JOURNAL OH THE TROUBLES BRINGING UP BABY THE GERBER BABY THAT IS IT HAS BEEN A TUMULTUOUS YEAR FOR GERBER PRODUCTS CO FIRST THERE WAS THE MYSTERIOUS RESIGNATION OF THE COMPANY'S NEW PRESIDENT THEN A LAWSUIT ACCUSING GERBER AND ITS TOP RIVALS OF FIXING PRICES SINCE THE MID1970S ALL THREE COMPANIES ARE CONTESTING THE CHARGES MORE RECENTLY THE BABYFOOD GIANT BASED IN FREMONT MICH HAS WATCHED ITS DOLLAR SALES SLIDE AS IT HAS LOST MARKET SHARE TO RIVALS DURING THE 12 WEEKS ENDED APRIL 25 GERBER'S SALES FELL NEARLY 3 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE THE DECLINE PARTLY REFLECTED THE EFFECTS OF A 55 PRICE INCREASE LAST SEPTEMBER THAT RIVALS DIDN'T IMMEDIATELY MATCH IN CONTRAST RALSTON PURINA CO'S BEECHNUT DIVISION GERBER'S CHIEF COMPETITOR POSTED A 5 SALES INCREASE IN THE 12 WEEKS HJ HEINZ CO'S BABYFOOD SALES WERE ABOUT FLAT BUT EARTH'S BEST'S SALES OF ORGANIC BABY FOOD JUMPED 92 GERBER STILL CONTROLS 712 OF THE MARKET WHILE THAT'S DOWN FROM A 724 SHARE A YEAR EARLIER IT'S STILL MUCH BIGGER THAN BEECHNUT'S 145 SHARE AND HEINZ'S 111 INDEED NEARLY HALF OF ALL US SUPERMARKETS CONTINUE TO CARRY GERBER EXCLUSIVELY BUT OVERALL SALES OF BABY FOOD MEASURED IN POUNDS SANK 6 IN THE LATEST 12WEEK PERIOD AND THE FUTURE DOESN'T LOOK PROMISING AS THE BABYBOOM GENERATION AGES AND GROWING NUMBERS OF WOMEN MOVE OUT OF THEIR CHILDBEARING YEARS THE PROSPECT HAS LED COMPANIES TO INTRODUCE BRAND EXTENSIONS AIMED AT MINORITY GROUPS WITH LARGER FAMILIES AND AT PARENTS WORRIED ABOUT CHEMICALS IN FOOD BABYFOOD MAKERS ARE ALSO SEEKING WAYS TO KEEP THEIR LOYAL CUSTOMERS EATING THEIR PRODUCTS LONGER GERBER'S GRADUATES LINE UNVEILED IN 1991 FEATURES SMALL MICROWAVE DISHES SUCH AS CHICKEN STEW WITH NOODLES FINGER FOODS LIKE MEAT STICKS AND SNACKS SUCH AS LOWSODIUM PRETZELS AND ANIMAL CRACKERS PARENTS WERE TELLING US WE USE YOUR BABY FOOD BUT WHAT DO WE DO NEXT' SAYS SPOKESMAN STEVE POOLE SALES OF THE 23ITEM GERBER GRADUATES LINE ROSE 51 IN THE 12WEEK PERIOD TO 96 MILLION BUT ANALYSTS SAY THE LINE IS STILL FALLING SHORT OF EXPECTATIONS DESPITE GERBER'S AGGRESSIVE MARKETING CAMPAIGN MANY PEOPLE SEE TODDLER FOODS AS AN UNNECESSARY AND EXPENSIVE CONVENIENCE ITEM A SIXOUNCE MICROWAVE ENTREE GENERALLY SELLS FOR 119 SINCE PARENTS CAN EASILY PUREE VEGETABLES OR SERVE MACARONI AND CHEESE FOOD AIMED SPECIFICALLY AT TODDLERS JUST DOESN'T MAKE SENSE SAYS DICK LANDWEHR A BUYER FOR SCHULTZ SAVO STORES IN MILWAUKEE MARIANNE MOBERLY IS ONE UNIMPRESSED MOTHER OH I WOULD NEVER BUY THOSE SAYS THE CHICAGO WOMAN AS SHE STANDS IN A BABYFOOD AISLE WITH HER TWOYEAROLD SON JONATHAN WHEN THEY'RE THAT AGE THEY'RE JUST EATING WHAT YOU'RE EATING ANYWAY ANALYSTS MAINTAIN THAT SAVVY TODDLERS ALSO THUMB THEIR NOSES AT THE GERBER NAME PAINEWEBBER'S ROGER SPENCER SAYS THAT WHEN YOU'RE A TODDLER YOU DON'T WANT TO BE CALLED A BABY MARGE AND BRAD HANCOCK AN EVANSTON ILL COUPLE SAY THEY TRIED TO INTRODUCE SON DYLAN TO GERBER'S TODDLER LINE BUT AFTER THE TWOYEAROLD SAMPLED MOM AND DAD'S CUISINE MS HANCOCK SAYS IT WAS LIKE FORGET IT GERBER'S MR POOLE RESPONDS THAT THE PRODUCT WAS SLOW ROLLING OUT BECAUSE IT'S SUCH A BROAD LINE BUT ALL INDICATIONS ARE THAT IT WILL MEET OR EXCEED OUR EXPECTATIONS BEECHNUT IS ALSO AIMING PRODUCTS AT TODDLERS ITS TABLE TIME MICROWAVE MEALS WHICH FEATURE DISHES LIKE SPAGHETTI RINGS WITH MEAT SAUCE HAD A SALES INCREASE OF 38 TO 13 MILLION IN THE 12 WEEKS ENDED APRIL 25 A BEECHNUT SPOKESMAN SAYS WE'RE VERY PLEASED WITH THE RESULTS TO TRY TO INCREASE OVERALL SALES GERBER AND BEECHNUT ARE ALSO TARGETING GROUPS WITH HIGHER BIRTH RATES THAN THE NATIONAL AVERAGE GERBER'S TROPICAL LINE MADE WITH FRUITS SUCH AS PAPAYAS AND MANGOES IS AIMED AT HISPANICS WHO ALSO TYPICALLY FEED MORE PREPARED BABY FOOD TO THEIR BABIES THAN MANY OTHER ETHNIC GROUPS THE LINE WAS RELEASED NATIONALLY LAST YEAR AFTER SUCCESSFUL TESTS IN NEW YORK AND MIAMI BUT IT SHOWED A 17 SALES DROP IN THE 12 WEEKS ENDED APRIL 25 EARLIER THIS YEAR BEECHNUT BEGAN TEST MARKETING ITS TROPICALE LINE THE PRODUCT IS STILL LIMITED TO STRONG HISPANIC MARKETS BEECHNUT SAYS AND THERE ISN'T ANY PLAN YET TO GO NATIONAL WITH IT FOR NOW GERBER SAYS THERE'S ONE GROWTH AREA IT ISN'T INTERESTED IN PURSUING ORGANIC BABY FOOD THAT MARKET HAS STEADILY PICKED UP SPEED THE PAST FEW YEARS SPURRED BY THE SUCCESS OF EARTH'S BEST WHICH WAS INTRODUCED IN 1987 AS AN ORGANIC BABY FOOD SALES OF THE MIDDLEBURY VT COMPANY CLIMBED 92 TO 32 MILLION IN THE 12 WEEKS ENDED APRIL 25 GERBER'S MR POOLE ARGUES THAT THERE SHOULD BE ONE STANDARD FOR BABY FOOD AND WE PROVIDE THAT HE SAYS GERBER'S PRODUCTS SHOW LITTLE OR NO TRACE OF PESTICIDE CHEMICALS AND ADDS THAT'S AS GOOD AS ORGANIC CAN CLAIM TO BE BUT THAT VIEW COULD CHANGE IF CONCERN OVER PESTICIDES IN FOOD INCREASES LAST WEEK THE NATIONAL ACADEMY OF SCIENCES RELEASED A REPORT SUGGESTING CURRENT STANDARDS FOR PESTICIDE CONTROL ARE INAPPROPRIATE FOR CHILDREN BECAUSE YOUNGSTERS HAVE A LOWER BODYWEIGHTTOFOOD RATIO AND ARE MORE SUSCEPTIBLE TO ILLNESS THAN ADULTS BABIES NEED MORE ORGANIC FOOD THAN THE REST OF US CONTENDS MARTHA SEARS A CALIFORNIA NURSE AND COAUTHOR OF THE BABY BOOK A GUIDE FOR NEW PARENTS INDEED BEECHNUT BEGAN MARKETING ITS OWN ORGANIC SPECIAL HARVEST LINE TWO YEARS AGO BUT DISCONTINUED THE PRODUCT IN APRIL DOLLAR SALES IN THE 12 WEEKS ENDED APRIL 25 PLUMMETED 44 A COMPANY SPOKESMAN ATTRIBUTES THE FAILURE TO DIFFICULTY OBTAINING ADEQUATE QUANTITIES OF ORGANIC INGREDIENTS BUT EARTH'S BEST COFOUNDER ARNIE KOSS SAYS THAT IS MORE OF AN EXCUSE BEECHNUT NEVER HAD A COMMITMENT TO ORGANIC FOODS THEY JUST DECIDED WE WERE TOO FORMIDABLE A COMPETITOR MR KOSS CONCEDES THAT ORGANIC BABY FOOD'S PREMIUM PRICE IS OFTEN AN ISSUE FOR SHOPPERS RECENTLY A 45OUNCE JAR OF EARTH'S BEST WAS SELLING FOR 59 CENTS COMPARED WITH 39 CENTS FOR A FOUROUNCE JAR OF GERBER'S BABY FOOD IT'S LIKE GOURMET PET FOOD SAYS WILLIAM LEACH AN ANALYST FOR DONALDSON LUFKIN & JENRETTE IT'S NOT ANYTHING NEW YOU'RE GETTING IT'S JUST PSYCHOLOGICAL 9307060016 930706 A STORY'S CENTENNIAL CALLS FOR CELEBRATION OR MAYBE A TEA PARTY POTTER'S PETER RABBIT' INSPIRES FREUDIANS FEMINISTS ALIKE KIDS DELIGHT IN THE MISCHIEF BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL TAKE A SAUCY RABBIT A FURTIVE FEAST IN THE LETTUCE PATCH AND AN IRATE FARMER WHO JUST MISSES SKEWERING THE LITTLE PEST WITH HIS PITCHFORK PRETTY TAME PLOT ELEMENTS BY TODAY'S STANDARDS LONG BEFORE BUGS BUNNY OR ROGER RABBIT BOUNDED ONTO CELLULOID A SHY ENGLISH WOMAN IN 1893 WROTE THAT STORY IN A LETTER SPRINKLED WITH INK SKETCHES TO CHEER UP AN INVALID BOY A HUNDRED YEARS LATER THE TALE OF PETER RABBIT BY BEATRIX POTTER STANDS AS THE MOST POPULAR CHILDREN'S BOOK OF ALL TIME SOME MAY WONDER HOW MODERN CHILDREN JADED BY BARBIE DOLLS AND FRENETIC VIDEO GAMES STILL FIND ADVENTURE IN MISS POTTER'S RURAL TALES BUT PETER RABBIT IS A SURVIVOR SELLING MORE THAN NINE MILLION COPIES IN THE US ALONE MISS POTTER'S WORKS 23 BOOKS IN ALL HAVE SOLD ABOUT 70 MILLION COPIES IN 30 LANGUAGES WORLDWIDE TO MARK PETER RABBIT'S 100TH BIRTHDAY CLASSROOMS ARE CELEBRATING HIM PUBLISHERS ARE PROMOTING HIM AND SCHOLARS ARE SOBERLY ASSESSING HIS IMPACT MUSEUMS ARE MOUNTING EXHIBITS OF MISS POTTER'S ARTWORK FROM LONDON TO MELBOURNE AUSTRALIA AND ALL OVER THE US RETAILERS SUCH AS HARRODS AND FAO SCHWARZ ARE PEDDLING MERCHANDISE BEARING HIS FURRY LIKENESS ON EVERYTHING FROM PLUSH TOYS TO WEDGEWOOD CHINA AND CHOPSTICKS AMERICANS LOVE HER WORK AND THE JAPANESE ARE NUTS ABOUT PETER RABBIT SAYS CHRISTINE JONES A NEW YORKBASED SENIOR MANAGER AT PETER'S PUBLISHER FREDERICK WARNE & CO THEY CALL HIM PETER RABBITO' WARNE BASED IN LONDON IS A DIVISION OF PEARSON PLC'S PENGUIN UK UNIT WORLDWIDE RETAIL SALES OF PETER PARAPHERNALIA IN 1992 BY 200 LICENSEE COMPANIES TOTALED ABOUT 255 MILLION I'M SURE THIS YEAR WITH THE CENTENARY IT WILL BE RATHER MORE SAYS WARNE'S LONDONBASED PUBLISHER SALLY FLOYER SINCE MISS POTTER HAS NO LIVING HEIRS PUBLISHING REVENUES AND ROYALTIES GO TO WARNE WHICH USES SOME OF THE MONEY TO MAINTAIN HER ARTWORK IN MELBOURNE AND AT THE VICTORIA AND ALBERT MUSEUM IN LONDON CURATORS WILL DISPLAY MISS POTTER'S ARTWORK AND MEMORABILIA JAPANESE FANS CAN ATTEND A LECTURE AT TOKYO UNIVERSITY IN SEPTEMBER BY POTTER BIOGRAPHER JUDY TAYLOR IN SEATTLE THE PACIFIC SCIENCE CENTER TALLIED ITS SECONDHIGHEST APRIL ATTENDANCE EVER WITH THROUGH THE GARDEN GATE THE WORLD OF BEATRIX POTTER A SHOW OF HER WATERCOLORS AND SKETCHES PLUS A WALKTHROUGH GARDEN OF FIVEFOOT CABBAGES AND A SEVENFOOT WATERING CAN SO YOU CAN PRETEND YOU'RE PETER HIDING FROM MR MCGREGOR THE FARMER PETERMANIA OR POTTERMANIA HAS HIT CRITICS AND CHILDREN ALIKE FEMINISTS FREUDIANS AND SECONDGRADERS ALL ARE STRUGGLING TO UNDERSTAND THE APPEAL OF PETER AND HIS LITERARY KIN TOM KITTEN SQUIRREL NUTKIN MRS TIGGYWINKLE AND THE TWO BAD MICE MISS POTTER WAS ONE OF THE FIRST ENGLISH WRITERS SPECIFICALLY TO ADDRESS THE CHILD WITHOUT CONDESCENSION OR OVERT MORALIZING SAYS ROBERT TRACY PROFESSOR EMERITUS OF VICTORIAN LITERATURE AT UNIVERSITY OF CALIFORNIA AT BERKELEY IT EXPRESSES CHILDREN'S CONFLICTING DESIRE TO ESCAPE FROM HOME AND HAVE ADVENTURES AND THE EQUALLY STRONG DESIRE TO STAY HOME WHERE IT'S SAFE WITH MOMMY SAYS SUZANNE RAHN ASSOCIATE PROFESSOR AT PACIFIC LUTHERAN UNIVERSITY IN TACOMA WASH PETER HAS IT BOTH WAYS HE RETURNS TO THE SAFETY OF THE WARREN WHICH IS LIKE A WOMB HIS MOTHER DOESN'T PUNISH HIM SHE GIVES HIM CHAMOMILE TEA MISS POTTER WHOSE LIFE SPANNED THE REIGN OF QUEEN VICTORIA TO THE BOMBING OF LONDON IN WORLD WAR II ENDURED A LONELY CHILDHOOD BORN WEALTHY AND REARED LARGELY BY NANNIES SHE KEPT UNTIL HER 30S A MENAGERIE OF MICE BATS HEDGEHOGS AND OF COURSE RABBITS WHICH SHE LED ABOUT ON A LEASH HER PARENTS FROWNED ON CAREER AND COURTSHIP BUT AFTER WRITING 23 BOOKS SHE MARRIED HER SOLICITOR WILLIAM HEELIS AT AGE 47 AND RETIRED TO THE LAKE DISTRICT TO RAISE SHEEP AND WORK FOR CONSERVATION AT HER DEATH A STRICKEN SHEPHERD MOURNED AYE IT'S A BAD DAY FOR FARMERS ONE UNABASHED FAN IS MAURICE SENDAK AWARDWINNING AUTHOR OF WHERE THE WILD THINGS ARE WHO WROTE OF PETER RABBIT THAT THIS WORK OF THE IMAGINATION DEFIES PIGEONHOLING AMAZINGLY PETER IS BOTH ENDEARING LITTLE BOY AND EXPERTLY DRAWN RABBIT WHEN A NONFAN ATTACKED MISS POTTER DURING A LECTURE MR SENDAK RECALLED MY ONLY IMPULSE WAS TO SMASH HIM IN THE NOSE I QUIETLY SULKED INSTEAD THE NOVELIST GRAHAM GREENE ONCE SPECULATED MISS POTTER HAD SUFFERED AN EMOTIONAL ORDEAL WHICH CHANGED THE CHARACTER OF HER GENIUS THIS HE SAID TRANSFORMED HER CHARACTERS FROM THE NAUGHTY BUT LOVABLE PETER TO THE EVIL FOX MR TOD A SEDUCTIVE CARNIVORE RESEMBLING THE URBANE VILLAINS OF HENRY JAMES MR GREENE LATER RECEIVED A SOMEWHAT ACID LETTER FROM MISS POTTER DENYING THERE HAD BEEN ANY ANY EMOTIONAL UPSETS MERELY A BAD BOUT OF FLU AND BASHING FREUDIAN CRITICS IN SAN FRANCISCO TWO SECONDGRADE CLASSES AT THE KATHERINE BURKE SCHOOL RECENTLY DONNED FLOPPY TEA HATS FOR A PARTY HONORING PETER'S 100TH BIRTHDAY AND OFFERED THEIR OPINIONS LIKE THEIR TEA STRAIGHT UP WHY DO YOU THINK PETER RABBIT HAS BEEN AROUND FOR 100 YEARS TEACHERS GALE MOSHEIM AND CANDACE MCMUNN ASKED THE CLASSES IT HAS BEEN PASSED ON FROM GENERATION TO GENERATION OFFERED NORMA ALTSHULER A FRECKLED SECONDGRADER IN A BLUE STRAW BOATER ADULT CRITICS TIE THEMSELVES IN KNOTS PRAISING MISS POTTER'S BREVITY ECONOMY OF PHRASE AND CRISP NARRATIVE ATTACK SECONDGRADER SALLY HANDMAKER SIMPLY SAYS PETER RABBIT IS NOT LIKE OTHER BORING STORIES THAT JUST GO ON AND ON IT HAS A BEGINNING A MIDDLE AND AN END IN THEIR REACTIONS KIDS TENDED TO SEPARATE INTO MORALISTS ANARCHISTS AND ANIMAL LOVERS SEVENYEAROLD KETZIA JACOBY SAID PETER RABBIT IS ESSENTIAL READING BECAUSE IT TEACHES KIDS NOT TO STEAL AND BECAUSE HE'S A VERY VERY CUTE BUNNY ON THE OTHER HAND EIGHTYEAROLD JULIA RUFFO SAID IT'S THE EXCITEMENT AND LAWLESS ELEMENTS THAT DRAW HER EVERYBODY GETS INTO MISCHIEF JUST LIKE ME ACTUALLY I LIKE THE TALE OF TOM KITTEN' BECAUSE I LIKE CATS SAID SEVENYEAROLD CLEMENTINE BROWN MANY CHILDREN APPROVED MISS POTTER'S SCENES OF DESTRUCTION ESPECIALLY THE TALE OF TWO BAD MICE IN WHICH A RODENT COUPLE SYSTEMATICALLY DESTROYS A DOLL HOUSE IBSENLIKE THE CRITICS INTONED REBELLION AGAINST HER REPRESSIVE VICTORIAN PARENTS OTHERS CONCLUDED DECEPTIVELY DEMURE IN A ROSESPRIGGED HAT ONE CHILD SAID SHE PREFERS THE TALE OF TOM KITTEN BECAUSE WHEN ROWDY TOM AND HIS SISTERS ARE BANISHED FROM THEIR MOTHER'S TEA PARTY THEY WRECKED CLOBBERED AND DESTROYED HER ROOM MS TAYLOR THE POTTER BIOGRAPHER WHO JUST EDITED A NEW VOLUME OF POTTER CRITICISM IS TOLERANT OF FREUDIAN FANCIES BUT ULTIMATELY SHE VOTES WITH THE KIDS I MYSELF JUST FEEL THE BOOKS ARE GLORIOUS MANY CHILDREN LOVE THE IDEA OF BEING ABLE TO RUN AMOK 9307060015 930706 LAW LEGAL BEAT HMO MEMBERS RECEIVE VICTORY ON BANKRUPTCY BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL MEMBERS OF HEALTH MAINTENANCE ORGANIZATIONS WERE HANDED AN IMPORTANT VICTORY BY A FEDERAL APPEALS COURT WHICH RULED THAT FAILED HMOS CAN'T FILE FOR US BANKRUPTCYCOURT PROTECTION THE DECISION MEANS THAT INSOLVENT HMOS WILL HAVE TO LIQUIDATE OR RESTRUCTURE UNDER THE OVERSIGHT OF STATE INSURANCE OFFICIALS AND STATE LAWS WHICH GIVE PATIENTS PRIORITY OVER OTHER CREDITORS SINCE 1980 DOZENS OF HMOS HAVE GONE OUT OF BUSINESS OR SOUGHT BANKRUPTCYCOURT PROTECTION INCLUDING MAXICARE HEALTH PLANS INC ONE OF THE NATION'S LARGEST THE SOARING COST OF MEDICAL TECHNOLOGY AND HOSPITAL EXPENSES CONTINUES TO SQUEEZE PROFITS AT HMOS THE DECISION BY THE SEVENTH US CIRCUIT COURT OF APPEALS CAME IN THE CASE OF MEDCARE HMO MAYWOOD ILL A 54000MEMBER HMO THAT FILED A PETITION IN JUNE 1992 FOR PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE THE CHICAGO APPEALS COURT REMOVED THE CASE FROM BANKRUPTCY COURT RULING THAT AT LEAST UNDER ILLINOIS LAW HMOS ARE ESSENTIALLY INSURANCE COMPANIES AND THUS EXCLUDED FROM FEDERAL BANKRUPTCYLAW PROTECTION FEDERAL BANKRUPTCY PROVISIONS GENERALLY DON'T APPLY TO SOME INDUSTRIES SUCH AS INSURANCE AND BANKING WHICH ARE REGULATED BY OTHER LAWS TO PROTECT CONSUMERS HERE YOU HAD HUNDREDS OF MEDCARE MEMBERS WHO THOUGHT THEY HAD INSURANCE AND THAT THEY HAD SOME PROTECTION AFFORDED TO THEM AND IN BANKRUPTCY IT ISN'T THERE SAID BARRY GROSS A LAWYER FOR THE STATE OF ILLINOIS WHICH INTERVENED IN THE CASE TO GET IT REMOVED FROM BANKRUPTCY COURT HMOS SHOULD BE IN THIS ALTERNATE LIQUIDATION SCHEME THAT'S DESIGNED TO PROTECT THE CONSUMER HE SAID DONALD E JOHNSON THE BANKRUPTCYCOURT TRUSTEE FOR MEDCARE'S BANKRUPT ESTATE SAID HE HASN'T DECIDED WHETHER TO APPEAL THE COURT'S DECISION HE SAID THE LAW AS IT NOW STANDS IS UNCLEAR AND THAT IT WOULD BE CHEAPER AND MORE EFFICIENT TO HAVE A UNIFORM STANDARD IN HMO BANKRUPTCIES MOST STATES GIVE CONSUMERS PRIORITIES AS CREDITORS WHEN THEIR INSURERS FAIL AND SEVERAL STATES HAVE POOLS TO COVER PATIENTS' HEALTH EXPENSES IN CASE THEIR HMOS BECOME INSOLVENT BUT THOSE POOLS ARE DESIGNED FOR STATECOURT LIQUIDATIONS AND HAVEN'T BEEN USED IN FEDERAL BANKRUPTCY CASES LOWER COURTS HAVE BEEN DIVIDED ABOUT WHETHER HMOS ARE INSURERS OR SIMPLY GROUPS OF DOCTORS AND HOSPITALS THAT PROVIDE HEALTHCARE SERVICES FOR PATIENTS HMOS OFTEN OWN THEIR OWN EQUIPMENT AND HAVE PHYSICIANS ON STAFF AND MEMBERS PAY A FLAT FEE FOR ALL THEIR HEALTHCARE NEEDS BY CONTRAST TRADITIONAL INSURANCE COVERAGE TYPICALLY ALLOWS PATIENTS TO CHOOSE THEIR OWN DOCTORS AND REIMBURSES THEM FOR THE COST OF TREATMENT LOS ANGELESBASED MAXICARE WHICH IN 1989 BECAME THE LARGEST HMO TO SEEK PROTECTION FROM CREDITORS WAS ALLOWED TO REORGANIZE IN FEDERAL BANKRUPTCY COURT ALTHOUGH INSURANCE COMMISSIONERS IN A NUMBER OF STATES WHERE THE HMO OPERATED ARGUED THAT IT CONSTITUTED AN INSURANCE OPERATION AND THUS WASN'T COVERED BY THE BANKRUPTCY LAWS THE SEVENTH CIRCUIT OPINION SPECIFICALLY COVERS ILLINOIS LAW BUT IT MAY INFLUENCE OTHER COURTS TO APPLY STATE INSURANCE LAWS IN HMO INSOLVENCIES INDEED THE COURT POINTED OUT THAT TRADITIONAL HEALTH INSURERS ARE ADOPTING MORE AND MORE COSTCUTTING STRATEGIES USED BY HMOS MAKING THE DIFFERENCES BETWEEN THEM EVEN MORE ELUSIVE THE BUSINESS OF RUNNING HMOS HAS BECOME INTENSELY COMPETITIVE AS EMPLOYERS' EFFORTS TO CONTROL HEALTH COSTS HAVE PUSHED MILLIONS OF NEW PATIENTS INTO HMOS BUT JOHN ERB A CONSULTANT AT A FOSTER HIGGINS A BENEFITS CONSULTING FIRM SAID MANY HMOS HAVE RECENTLY TAKEN STEPS TO PROTECT THEMSELVES FROM INSOLVENCY SUCH AS BUYING ADDITIONAL INSURANCE TO COVER UNEXPECTED LOSSES I HOPE WE'VE GONE THROUGH THE WORST OF IT HE SAID A BAR ON INSURANCE COVERAGE FOR POLLUTION CLAIMS DOESN'T NECESSARILY APPLY TO PERSONALINJURY CASES A FEDERAL COURT RULED GOULD INC SUED ITS INSURERS TO RECOVER THE COST OF SETTLING POLLUTIONRELATED PERSONALINJURY CASES STEMMING FROM A PLANT IN THROOP PA THE COMPANY A UNIT OF NIKKO KYODO CO MAINTAINED THAT THE INSURERS SHOULD BE REQUIRED TO PAY DESPITE THE SOCALLED POLLUTION EXCLUSION CLAUSE WHICH GENERALLY PROTECTS INSURERS FROM POLLUTION CLAIMS GOULD MAKES COMMERCIAL ELECTRONICS PARTS ONE OF THE INSURERS NATIONAL UNION FIRE INSURANCE CO ARGUED THAT THE POLLUTIONEXCLUSION CLAUSE IN GOULD'S BODILY INJURY AND PROPERTYDAMAGE POLICIES ALSO APPLIED TO ITS PERSONALINJURY POLICY US DISTRICT JUDGE RICHARD P CONABOY IN SCRANTON PA HOWEVER REJECTED NATIONAL UNION'S REQUEST TO DISMISS THE CASE AND RULED THAT GOULD'S CLAIM CAN GO TO TRIAL THE JUDGE FOUND THAT THE PERSONALINJURY POLICY THAT NATIONAL UNION SOLD GOULD AS AN AMENDMENT TO ITS OTHER POLICIES WAS AMBIGUOUS ABOUT WHETHER THE POLLUTIONEXCLUSION CLAUSE APPLIED GOULD SUED ITS INSURERS AFTER SETTLING SUITS FROM PROPERTY HOLDERS MAKING PERSONALINJURY CLAIMS FOR ALLEGED CONTAMINATION FROM THE BATTERYCRUSHING AND LEADRECOVERY PLANT IN THROOP JOHN E MCKEEVER AN ATTORNEY FOR GOULD AT PHILADELPHIA LAW FIRM SCHNADER HARRISON SEGAL & LEWIS SAID COURTS HAVE BEEN SPLIT IN SUCH CASES ON WHETHER TO APPLY THE EXCLUSION CLAUSE TO A PERSONALINJURY LIABILITY POLICY HE SAID INSURERS ARE LIKELY TO BEGIN CHANGING THEIR PERSONALINJURY LIABILITY POLICIES TO SPECIFICALLY EXCLUDE POLLUTIONRELATED CLAIMS RICHARD KUHL AN ATTORNEY FOR NATIONAL UNION DECLINED TO COMMENT ON DETAILS OF THE CASE AND SAID A NUMBER OF OTHER LEGAL ISSUES ARE OUTSTANDING MARK ABENE A 21YEAROLD HIGHSCHOOL DROPOUT WHO GAINED NOTORIETY AS A COMPUTER HACKER PLEADED GUILTY TO ONE COUNT OF CONSPIRACY AND ONE COUNT OF ILLEGALLY BREAKING INTO A COMPUTER SYSTEM KNOWN IN THE COMPUTER WORLD AS PHIBER OPTIK MR ABENE GAINED PROMINENCE SEVERAL YEARS AGO WHEN HE BEGAN PUBLICLY SPEAKING ABOUT THE ETHICS OF COMPUTER HACKING BUT LAST YEAR MR ABENE AND FOUR OTHER YOUNG PEOPLE FROM THE NEW YORK AREA WHO CALLED THEMSELVES THE MASTERS OF DECEPTION WERE ARRESTED FOR BREAKING INTO TELEPHONE COMPANY CREDITREPORTING SERVICE AND UNIVERSITY COMPUTER SYSTEMS THE FEDERAL GOVERNMENT CALLED THE ARRESTS SIGNIFICANT BECAUSE THEY MARKED THE FIRST TIME THAT WIRETAPS HAD BEEN USED TO MONITOR COMPUTER TRANSMISSIONS MR ABENE WHO HAD BEEN SCHEDULED TO GO ON TRIAL THIS WEEK IN FEDERAL COURT IN NEW YORK WILL BE SENTENCED IN NOVEMBER THE OTHER FOUR DEFENDANTS PREVIOUSLY PLEADED GUILTY WHO'S NEWS JAMES R COFFEE WAS NAMED DEPUTY GENERAL COUNSEL AT LOS ANGELES OIL COMPANY ATLANTIC RICHFIELD CO HE PREVIOUSLY WAS GENERAL ATTORNEY FOR THE COMPANY'S ARCO OIL & GAS CO UNIT IN DALLAS MR COFFEE 58 YEARS OLD SUCCEEDS HENRY H PAIGE 65 WHO IS RETIRING ELISE D SMITH BECAME OF COUNSEL TO KATTEN MUCHIN ZAVIS & DOMBROFF THE WASHINGTON OFFICE OF CHICAGO LAW FIRM KATTEN MUCHIN & ZAVIS MS SMITH FORMERLY DEPUTY ASSISTANT SECRETARY FOR HEALTH POLICY IN THE US DEPARTMENT OF HEALTH AND HUMAN SERVICES WILL PRACTICE IN THE FIRM'S HEALTHCARE GROUP SENATOR JOINS FIRM WYCHE FOWLER JR FORMER US SENATOR FROM GEORGIA JOINED POWELL GOLDSTEIN FRAZER & MURPHY HE WILL BE A PARTNER IN THE ATLANTA LAW FIRM DIVIDING HIS TIME BETWEEN THE ATLANTA AND WASHINGTON OFFICES MR FOWLER LOST HIS SENATE SEAT TO FORMER GEORGIA STATE SENATOR AND PEACE CORPS DIRECTOR PAUL COVERDELL IN A SPECIAL RUNOFF ELECTION IN NOVEMBER KATIA HETTER AND JONATHAN M MOSES CONTRIBUTED TO THIS ARTICLE 9307060014 930706 BUSINESS BRIEF KELLOGG CO CONCERN IS ALLOWED TO HOLD 100 STAKE IN UNIT IN INDIA KELLOGG CO SAID THE GOVERNMENT OF INDIA GRANTED IT THE RIGHT TO HOLD A 100 STAKE IN ITS INDIAN SUBSIDIARY WHICH IS BUILDING A CEREAL FACTORY NEAR BOMBAY THE PLANNED ENTRY INTO INDIA IS PART OF AN INTERNATIONAL EXPANSION THE BATTLE CREEK MICH CEREAL MAKER HAS BEEN PURSUING IN RECENT YEARS WHEN KELLOGG INITIALLY DISCLOSED PLANS FOR AN INDIAN OPERATION IN LATE 1991 THE CONCERN EXPECTED ONLY TO OWN A MAJORITY STAKE IN KELLOGG INDIA LTD WITH THE REMAINING PORTION TO BE SOLD PUBLICLY IN INDIA KELLOGG SAID THAT THE INDIAN GOVERNMENT'S PERMISSION TO RETAIN THE ENTIRE SUBSIDIARY WILL PROVIDE IT WITH GREATER FLEXIBILITY IN MAXIMIZING OUR BUSINESS PLANS FOR THIS EXCITING MARKET 9307060013 930706 NORTH CANADIAN OILS NORCEN ENERGY BOARDS CLEAR INTEGRATION PLAN CALGARY ALBERTA NORCEN ENERGY RESOURCES LTD AND NORTH CANADIAN OILS LTD SAID THEIR BOARDS APPROVED A PREVIOUSLY REPORTED PLAN TO INTEGRATE THE COMPANIES' OPERATIONS AND STAFFS DESPITE THE MOVE THE COMPANIES SAID THAT IN ORDER TO PROTECT THE INTERESTS OF EACH COMPANY'S SHAREHOLDERS NORTH CANADIAN WILL REMAIN A PUBLICLY TRADED ACTIVE OIL AND GAS COMPANY NORCEN ACQUIRED A 505 STAKE IN NORTH CANADIAN EARLIER THIS YEAR BUT MINORITY HOLDERS REBUFFED ITS FOLLOWUP OFFER TO ACQUIRE THE REST OF THE SHARES EFFECTIVE JULY 1 FOUR NORCEN OFFICERS WERE APPOINTED TO NORTH CANADIAN'S TOP EXECUTIVE POSITIONS REPLACING NORTH CANADIAN EXECUTIVES WHO ANNOUNCED THEIR RESIGNATIONS AFTER NORCEN BECAME NORTH CANADIAN'S MAJOR SHAREHOLDER NORCEN'S SENIOR VICE PRESIDENT PRODUCTION DK BRUCE FENWICK WHO BECOMES NORTH CANADIAN'S PRESIDENT SAID ALL FOUR EXECUTIVES ARE TAKING ON ROLES WITH NORTH CANADIAN IN ADDITION TO THEIR DUTIES WITH NORCEN THE 47YEAROLD MR FENWICK SUCCEEDS NORMAN GISH NORTH CANADIAN'S FORMER PRESIDENT AND CHIEF EXECUTIVE THE OTHER APPOINTMENTS INCLUDE NORCEN VICE PRESIDENT AND COMPTROLLER GORDON B SINGER 52 TO THE POSITION OF VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF NORTH CANADIAN HE SUCCEEDS NORTH CANADIAN'S FORMER CHIEF FINANCIAL OFFICER BARRY PADLEY IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING FRIDAY NORCEN WAS UNCHANGED AT 1650 WHILE NORTH CANADIAN ROSE 125 CENTS TO 1275 9307060012 930706 ITALY TO OFFER MEASURES TO CUT BUDGET DEFICIT FOR 1994 BY 24 BILLION SPECIAL TO THE WALL STREET JOURNAL MILAN ITALY PLANS TO TRIM 37 TRILLION LIRE 24 BILLION FROM ITS 1994 BUDGET DEFICIT THROUGH A PACKAGE OF MEASURES TO BE PRESENTED THIS MONTH THE TREASURY MINISTRY SAID THE 1994 BUDGET DEFICIT ALREADY IS FORECAST TO EXCEED A TARGET 150 TRILLION LIRE BY SOME 40 TRILLION LIRE AND THE PACKAGE OF MEASURES WILL AIM TO KEEP THE COUNTRY'S PUBLIC FINANCES ON TRACK THE GOVERNMENT SET TARGETS FOR PUBLIC FINANCES FOR A THREEYEAR PERIOD IN 1992 OUTLINES FOR THE ACTUAL 1994 BUDGET PACKAGE ALSO ARE EXPECTED TO BE READY THIS MONTH ALTHOUGH DETAILED PLANS AREN'T LIKELY TO BE READY UNTIL SEPTEMBER THE PACKAGE CUTS ARE TO BE PRESENTED TO THE UPPER HOUSE OF PARLIAMENT OR SENATE JULY 14 ACCORDING TO PUBLIC WORKS MINISTER FRANCESCO MERLONI A PACKAGE AIMED AT SHAVING 125 TRILLION LIRE FROM 1993'S BUDGET DEFICIT CURRENTLY IS UNDER DISCUSSION IN PARLIAMENT THE PACKAGE WOULD REDUCE THE BUDGET DEFICIT FROM AN ANTICIPATED 167 TRILLION LIRE TO NEARER GOVERNMENT FORECASTS OF 150 TRILLION LIRE TREASURY MINISTER PIERO BARUCCI TOLD A CABINET MEETING THERE WERE SOME SIGNS OF RECOVERY IN THE COUNTRY ACCORDING TO MR MERLONI MR BARUCCI ALSO SAID THAT TAX REVENUES WERE GOING WELL ENOUGH MR MERLONI ADDED THE FINANCE MINISTRY SAID THAT REVENUE FROM PERSONAL TAXES HAD REACHED 36 TRILLION LIRE THROUGH JUNE 23 1993 AN INCREASE OF 98 TRILLION LIRE OR 38 OVER THE 1992 PERIOD BUT THOSE FIGURES DON'T TAKE INTO ACCOUNT ALL THE CHANGES IN ITALY'S TAXATION SYSTEM INTRODUCED THIS YEAR THE GOVERNMENT OF PRIME MINISTER CARLO A CIAMPI WON'T GIVE DETAILS OF THE 1994 BUDGET PACKAGE UNTIL THOSE TAX REVENUE FIGURES ARE AVAILABLE 9307060011 930706 INTERNATIONAL PEROT'S STAND AGAINST TRADE PACT WITH MEXICO ISN'T SHARED BY BUSINESSES OWNED BY HIS FAMILY BY WALL STREET JOURNAL REPORTERS MATT MOFFETT IN MEXICO CITY AND JEFF D OPDYKE IN DALLAS ASIDE FROM A FEDERAL JUDGE'S QUALMS ABOUT THE ENVIRONMENTAL IMPACT OF THE NORTH AMERICAN FREE TRADE AGREEMENT ROSS PEROT MAY BE THE SINGLE BIGGEST OBSTACLE TO COMPLETION OF THE PROPOSED TRADING BLOC UNITING THE US MEXICO AND CANADA IN TESTIMONY BEFORE CONGRESS STUMP SPEECHES AND TELEVISION INFOMERCIALS THE TEXAS BILLIONAIRE AND WOULDBE PRESIDENT HAS PAINTED AN APOCALYPTIC VISION OF THOUSANDS OF US MANUFACTURERS PULLING UP STAKES TO EXPLOIT 58CENTANHOUR SLAVE LABOR IN MEXICO BUT EVEN AS MR PEROT DECRIES THE GIANT SUCKING SOUND US COMPANIES ARE MAKING AS THEY MOVE SOUTH OF THE BORDER PEROT FAMILY BUSINESSES HAVE BEEN MAKING PLENTY OF NOISE IN MEXICORELATED BUSINESSES THESE VENTURES UNDERMINE MR PEROT'S ARGUMENT THAT NAFTA WILL HARM US WORKERS THE PEROT FAMILY'S MAIN MEXICAN CONNECTION IS ITS 200 MILLION ALLIANCE AIRPORT PROJECT IN TEXAS WHICH IS MANAGED BY ROSS PEROT JR THE OUTSPOKEN BUSINESSMAN'S 34YEAROLD SON THIS 17000ACRE DEVELOPMENT NORTH OF FORT WORTH IS BEING MARKETED AS A MANUFACTURING CENTER WHERE COMPANIES CAN SHIP IN PARTS ASSEMBLE THEM AND SEND OUT FINISHED PRODUCTS TRADE WITH MEXICO COULD BE THE SALVATION OF THE SOFAR DISAPPOINTING VENTURE A 1991 ALLIANCE FILING WITH THE COMMERCE DEPARTMENT SEEKING US TARIFF BREAKS FOR PRODUCTS PASSING THROUGH THE AIRPORT TOUTS THE PROJECT AS A SPRINGBOARD OF GOODS FLOWING INTO AND OUT OF MEXICO THE APPLICATION LAUDS NAFTA SAYING IT WOULD BENEFIT THE US ECONOMY BY EXPANDING TRADE OPPORTUNITIES LOWERING PRICES INCREASING COMPETITION AND IMPROVING THE ABILITY OF US COMPANIES TO EXPLOIT ECONOMIES OF SCALE NEITHER MR PEROT NOR HIS SON WOULD BE INTERVIEWED FOR THIS ARTICLE BUT ROSS PEROT JR RECENTLY TOLD THE DALLAS MORNING NEWS THAT HE AND HIS FATHER HAVE A DIFFERENCE OF OPINION CONCERNING NAFTA THE IMPORTANT THING IS DON'T CONFUSE MY ACTIVITY WITH MY FATHER'S ACTIVITY YET BOTH PEROTS APPEAR SIDEBYSIDE IN A PHOTOGRAPH ON THE FIRST PAGE OF THE ALLIANCE PROMOTIONAL BROCHURE AND PEOPLE FAMILIAR WITH ALLIANCE SAY THE SENIOR MR PEROT PULLS THE STRINGS IF YOU WANT ANYTHING DONE YOU HAVE TO GO THROUGH SENIOR SAYS BERT MAHON ONE OF THE OWNERS OF AN AIRFIELD THAT WAS BOUGHT OUT BY THE GOVERNMENT TO EXPAND ALLIANCE A FEW YEARS AGO ALLIANCE ISN'T THE ONLY BUSINESS LINK THE PEROT FAMILY HAS HAD TO MEXICO THIS SPRING PEROT SYSTEMS CORP THE FAMILY'S 40OWNED COMPUTER SERVICES COMPANY BID FOR A 70 MILLION CONTRACT TO MANAGE THE COMPUTER OPERATIONS OF GRUPO FINANCIERO PROBURSA SAYS AN OFFICIAL FROM THE MEXICAN FINANCIAL GROUP PROBURSA WHICH SAYS PEROT SYSTEMS INITIATED THE DISCUSSIONS CHOSE ANOTHER BIDDER PEROT SYSTEMS HAD SALES OF 250 MILLION LAST YEAR THE ELDER MR PEROT RESIGNED AS PEROT SYSTEMS' CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN MAY 1992 DURING HIS BID FOR THE WHITE HOUSE HE REMAINS A DIRECTOR WHILE HE WON'T TALK ABOUT SPECIFIC DEALS MORTON H MEYERSON THE NEW CHIEF OF PEROT SYSTEMS SAYS THE COMPANY HAS LOOKED IS LOOKING AND WILL LOOK AT OPPORTUNITIES IN MEXICO MEXICO FOR THE NEXT 10 YEARS OR SO IS GOING TO BE A GREAT PLACE HE SAYS AND NAFTA I THINK IT WILL HELP MEXICO MATERIALLY IF IT WILL BE PASSED MR MEYERSON SAYS ACTUALLY I THINK IT WILL ALSO HELP THE UNITED STATES HOW DOES THAT FIT WITH THE VIEW OF HIS COMPANY'S NAMESAKE HE'S NOT RUNNING THE COMPANY SAYS MR MEYERSON MR PEROT'S VIEWS DON'T REPRESENT THOSE OF PEROT SYSTEMS THE PEROT ENTERPRISE THAT STANDS TO GAIN THE MOST FROM NAFTA IS ALLIANCE IN THE MID1980S THE ELDER MR PEROT BOUGHT UP ABOUT 200 MILLION OF FARM AND RANCH LAND NORTH OF FORT WORTH AFTER EXTENSIVE LOBBYING BY THE PEROTS THE FEDERAL AVIATION ADMINISTRATION CHOSE THE LAND AS THE SITE FOR A NEW CARGO AIRPORT THE PEROTS DONATED THE 520 ACRES ENCOMPASSING THE AIRPORT TO THE CITY OF FORT WORTH THE FAMILY HOPED TO PROFIT BY PERSUADING MANUFACTURERS AND MERCHANTS TO BUY THE 17000 ACRES IT OWNED AROUND THE RUNWAY BUT THE AIRPORT HAS DISAPPOINTED SINCE ITS 1989 OPENING WHAT WAS SUPPOSED TO BE THIS CARGO AND MANUFACTURING MECCA HAS TURNED OUT TO BE A GIANT BOONDOGGLE SAYS MICHAEL BOYD PRESIDENT OF AVIATION SYSTEMS RESEARCH OF GOLDEN COLO THE SLUMP IN THE TEXAS AEROSPACE AND DEFENSE INDUSTRIES HAS RESTRAINED ALLIANCE'S GROWTH LATELY THOUGH TEXAS HAS FOUND A NEW MEAL TICKET MEXICO MEXICAN TRADE IS THE BEST ECONOMIC DEVELOPMENT OPPORTUNITY WE'VE HAD IN OUR AREA OF THE COUNTRY SINCE WORLD WAR II SAYS DAVID DEAN A FORMER TEXAS SECRETARY OF STATE WHO IS CHAIRMAN OF NAFTA INITIATIVES FOR THE GREATER DALLAS CHAMBER OF COMMERCE ANNUAL TEXAS EXPORTS TO MEXICO HAVE TRIPLED TO 188 BILLION SINCE 1987 WHEN MEXICO BEGAN REMOVING TRADE BARRIERS NAFTA WOULD ONLY MEAN MORE COMMERCE FOR ALLIANCE THE SUDDEN PROMINENCE OF MEXICO IS REFLECTED IN THE 1991 APPLICATION TO THE US COMMERCE DEPARTMENT TO HAVE THE DEVELOPMENT DECLARED A FREETRADE ZONE THE APPLICATION WHICH PROMOTES ALLIANCE AS A FREETRADE HUB EVEN MAKES A SELLING POINT OF LOW MEXICAN WAGES THE ELDER MR PEROT'S BETE NOIRE ALLIANCE THE PROPOSAL SAYS COULD SHIP PARTS AND FINISHED GOODS FOR MANY COMPANIES THAT TAKE ADVANTAGE OF MEXICO'S INEXPENSIVE LABOR ALLIANCE EXECUTIVES PLAY DOWN THE MEXICAN CONNECTION ALLIANCE CERTAINLY ISN'T RELIANT UPON NAFTA AND WE'VE NEVER SAID NAFTA IS CRITICAL TO OUR SUCCESS SAYS MICHAEL BERRY EXECUTIVE VICE PRESIDENT OF HILLWOOD DEVELOPMENT THE PEROT COMPANY THAT OPERATES ALLIANCE HE SAYS ALLIANCE IS ALSO TRYING TO ATTRACT TRADE FROM EUROPE AND THE PACIFIC RIM MR BERRY DOES ACKNOWLEDGE THAT UNDER NAFTA ALLIANCE DOES BECOME A STRATEGIC POINT FOR BUSINESS AND TRADE MOVING THROUGH THE NORTH AMERICAN MARKET CONSIDER THE CASE OF THE ATCHISON TOPEKA AND SANTA FE RAILWAY A UNIT OF SANTA FE PACIFIC CORP WHICH IS CONSTRUCTING A 100 MILLION RAIL HUB AT ALLIANCE AMONG THE CLIENTS THE HUB WILL SERVICE ARE MEXICAN FOOD GROWERS WHOSE CROPS WOULD FLOW MORE FREELY INTO THE US UNDER NAFTA THE POSSIBILITY OF BUILDING AN AIRPORT IN MEXICO CITY TO LINK UP WITH ALLIANCE PROMPTED THE YOUNGER MR PEROT TO VISIT MEXICO LAST YEAR IN DECEMBER HE WAS A SPEAKER AT A DALLAS SEMINAR ON INVESTMENT OPPORTUNITIES IN MEXICAN INFRASTRUCTURE MEXICAN OFFICIALS SAY NOW AN OFFICIAL SAYS THE PROJECT HAS RETRENCHED BECAUSE OF THE ELDER MR PEROT'S ANTINAFTA OFFENSIVE MEANWHILE BACK IN FORT WORTH THOUSANDS OF UNSOLD ACRES OF ALLIANCE PROPERTY ARE ALSO IN A SORT OF LIMBO MY INTUITION IS THAT ALLIANCE IS IN TROUBLE WITHOUT MEXICAN TRADE BECAUSE IF TRADE SLOWS FOR WHATEVER REASON THERE'S NO NEED FOR ANOTHER AIRPORT IN DALLAS SAYS RAYMOND J BRIMBLE AN INTERNATIONAL BUSINESS EXPERT AT THE UNIVERSITY OF TEXAS 9307060010 930706 QUARTERLY MUTUAL FUNDS REVIEW GOLD ISN'T THE ONLY SHELTER FROM INFLATION BY MARY ROMANO SPECIAL TO THE WALL STREET JOURNAL THIS YEAR'S ROAD TO DAZZLING PERFORMANCE IS PAVED WITH GOLD GOLD FUNDS THAT IS GOLD FUNDS HAVE BEEN THE FUND INDUSTRY'S BEST PERFORMERS IN 1993 SOARING 5929 ON AVERAGE WHILE THE AVERAGE DIVERSIFIED US STOCK FUND HAS LIMPED ALONG WITH A 458 GAIN BUT BEFORE YOU RUSH OUT AND BUY A GOLD FUND CONSIDER THIS GOLD FUNDS HAVE BEEN LOSERS FOR MORE THAN A DECADE UNABLE EVEN TO KEEP UP WITH INFLATION INDEED OVER THE PAST 10 YEARS MOST GOLD FUND INVESTORS WOULD HAVE DONE FAR BETTER IF THEY HAD PLUNKED THEIR CASH IN A MONEY MARKET FUND FINANCIAL EXPERTS SAY INVESTORS BETTING ON INFLATION'S RETURN MAY BE BETTER OFF SAFEGUARDING THEIR PORTFOLIOS BY CHOOSING ALTERNATIVES SUCH AS REALESTATE FUNDS OR ENERGY FUNDS WHICH ARE CONSIDERED GOOD HEDGES AGAINST INFLATION BUT ALSO HAVE THE POTENTIAL TO GENERATE DECENT LONGRUN RETURNS REALESTATE AND ENERGY FUNDS ARE A KINDER GENTLER WAY TO HEDGE AGAINST INFLATION SAYS DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO MUTUAL FUND NEWSLETTER INVESTORS LOOKING TO PROTECT THEIR PORTFOLIO AGAINST CALAMITY TEND TO BE CAUTIOUS SO MR PHILLIPS THINKS IT'S IRONIC THAT THEY BUY GOLD FUNDS WHICH HAVE MUCH WILDER SHARE PRICE SWINGS THAN REALESTATE FUNDS OR ENERGY FUNDS IN 1990 WHEN THERE WAS THE PROSPECT OF A WAR IN THE MIDDLE EAST GOLD SHOULD HAVE BEEN GREAT BUT IT DIDN'T COME THROUGH MR PHILLIPS NOTES ENERGY AND REALESTATE FUNDS DON'T BOUNCE AROUND IN VALUE SO MUCH SO THEY KEEP INVESTORS ON BOARD WHICH IS KEY THE CONVENTIONAL WISDOM IS THAT WITH HIGHER INFLATION COMES HIGHER PRICES FOR SUCH COMMODITIES AS GOLD OIL AND REAL ESTATE AND RIGHT NOW THE STRONG PERFORMANCE OF FUNDS SPECIALIZING IN THESE THREE AREAS SUGGESTS THAT THERE IS A PERCEPTION THAT INFLATION WILL BE HIGHER IN THE FUTURE SAYS A MICHAEL LIPPER PRESIDENT OF MUTUAL FUND RESEARCHERS LIPPER ANALYTICAL SERVICES GOLD FUNDS ARE ON THE REBOUND BECAUSE GOLDMINING STOCKS WERE SO OVERSOLD ESPECIALLY SOUTH AFRICAN SHARES AN IMPROVING POLITICAL CLIMATE HAS HELPED HIGHYIELDING SOUTH AFRICAN GOLD STOCKS TO REBOUND ENERGY FUNDS HAVE BENEFITED FROM AN INCREASE IN LONGDEPRESSED NATURAL GAS PRICES MEANWHILE REALESTATE FUNDS HAVE BEEN AIDED BY REVIVED PROPERTY SALES AND REFINANCINGS WHICH ARE FUELED BY THE LOWEST INTEREST RATES IN DECADES MOST REALESTATE FUNDS HOLD REALESTATE INVESTMENT TRUSTS OR REITS WHICH OWN AND MANAGE COMMERCIAL INDUSTRIAL AND RESIDENTIAL PROPERTIES THE FUNDS ALSO CAN BUY COMMON STOCKS OF PROPERTYRELATED COMPANIES SUCH AS DEVELOPERS AND MORTGAGE LENDERS GOLD FUNDS MAY HAVE DONE WELL THIS YEAR BUT OVER THE PAST DECADE THEY HAVEN'T LIVED UP TO THEIR REPUTATION AS AN INFLATION HEDGE IN THE 10 YEARS THROUGH MAY 31 GOLD FUNDS HAVE MANAGED TO POST AN 189 GAIN WHILE INFLATION ROSE 454 ACCORDING TO LIPPER ANALYTICAL IT DEBUNKS THE MYTH OF GOLD AS AN INFLATION HEDGE SAYS JOHN CAMMACK A VICE PRESIDENT WITH T ROWE PRICE ASSOCIATES IN BALTIMORE INVESTORS IN REALESTATE AND ENERGY FUNDS HAVE FARED MUCH BETTER ENERGY FUNDS HAVE CLIMBED 141 IN THE PAST DECADE REALESTATE FUNDS WEREN'T AROUND 10 YEARS AGO BUT IN THE PAST FIVE YEARS THEY HAVE GAINED AN AVERAGE OF 642 DESPITE A GRIM THREEYEAR BEAR MARKET FOR REALESTATE SECURITIES IF YOU'RE INTERESTED IN AN ALTERNATIVE TO GOLD WHICH SHOULD YOU BUY ENERGY OR REAL ESTATE SCOTT LUMMER RECOMMENDS ENERGY NATURAL RESOURCES FUNDS WHICH HOLD ENERGY STOCKS ARE A BETTER HEDGE WITH PROMISING RETURNS SAYS MR LUMMER A MANAGING DIRECTOR AT IBBOTSON ASSOCIATES INC A CHICAGO INVESTMENT CONSULTING FIRM LEWIS J ALTFEST PRESIDENT OF NEW YORK INVESTMENT ADVISER LJ ALTFEST & CO FAVORS ENERGY FUNDS SUCH AS AMERICAN GAS INDEX FUND INVESCO FUNDS GROUP'S FINANCIAL STRATEGICENERGY PORTFOLIO AND VANGUARD SPECIALIZED ENERGY FUND ALL THREE HAVE LOW ANNUAL EXPENSES AND CAN BE BOUGHT WITHOUT PAYING A SALES COMMISSION OR LOAD ROBERT BINGHAM AN INVESTMENT ADVISER WITH SAN FRANCISCO'S BINGHAM OSBORN & SCARBOROUGH PREFERS REAL ESTATE HE BELIEVES REITS ARE QUITE EFFECTIVE INFLATION HEDGES HE RECOMMENDS THE TEMPLETON REAL ESTATE SECURITIES FUND A BROKERSOLD FUND THAT CHARGES A MAXIMUM 575 SALES COMMISSION AMONG NOLOAD REALESTATE FUNDS YOU MIGHT WANT TO CONSIDER FIDELITY REAL ESTATE INVESTMENT PORTFOLIO SAY BOTH MR BINGHAM AND MORNINGSTAR'S MR PHILLIPS WITH ASSETS OF 495 MILLION AND A DECENT LONGTERM TRACK RECORD IT IS THE BIGGEST AND MOST CONSISTENT PERFORMER OF THE GROUP MR PHILLIPS SAYS HE ALSO RECOMMENDS MORE DIVERSIFIED FUNDS SUCH AS THE NOLOAD T ROWE PRICE NEW ERA FUND WHICH WAS CREATED IN THE EARLY 1970S AS AN INFLATION HEDGE FUND THE PORTFOLIO CONTAINS GOLD MINING REALESTATE AND ENERGY SHARES HE ALSO LIKES THE BROKERSOLD SOGEN INTERNATIONAL FUND WHICH HAS ALWAYS HELD GOLD SHARES IN ITS PORTFOLIO BECAUSE THE FUND'S MANAGEMENT REALIZED INFLATION WAS NOT JUST AN EVENT OF THE 1970S MR PHILLIPS SAYS INDEED NOT EVERYBODY IS READY TO GIVE UP ON GOLD IF I HAD TO LOOK ONE PLACE IT WOULD BE THE GOLD SECTOR SAYS GERALD PERRITT EDITOR OF THE MUTUAL FUND LETTER A CHICAGO NEWSLETTER HE ARGUES THAT REAL ESTATE IS TOO INTERESTRATE SENSITIVE AND THAT ENERGY IS A SECTOR THAT IS TOO VULNERABLE TO EXTERNAL FORCES AS A RESULT MR PERRITT RECOMMENDS THE NOLOAD LEXINGTON GOLDFUND BECAUSE IT HOLDS BOTH GOLD BULLION AND A DIVERSE SELECTION OF GOLDMINING STOCKS FROM NORTH AMERICA SOUTH AFRICA AND AUSTRALIA INVESTORS WHO DON'T WANT TO BUY A FUND THAT CONTAINS SOUTH AFRICAN GOLD MINING SHARES SHOULD TAKE A LOOK AT THE NOLOAD BENHAM GOLD EQUITY INDEX MR PERRITT SAYS 9307060009 930706 QUARTERLY MUTUAL FUNDS REVIEW SCHWAB WILL DOUBLE THE NUMBER OF FUNDS AVAILABLE AT NO CHARGE NEW YORK CHARLES SCHWAB CORP IS ABOUT TO DOUBLE THE NUMBER OF MUTUAL FUNDS AVAILABLE AT NO CHARGE THROUGH ITS MUTUAL FUND MARKETPLACE FOR THE PAST NINE YEARS SCHWAB HAS SOLD OTHER COMPANIES' MUTUAL FUNDS CHARGING INVESTORS A SMALL FEE FOR THE SERVICE BUT IN JULY 1992 THE SAN FRANCISCO DISCOUNT BROKERAGE FIRM INTRODUCED ITS NOTRANSACTIONFEE PROGRAM UNDER WHICH INVESTORS COULD BUY SOME 100 FUNDS AT NO CHARGE A FEE EQUAL TO 025 OF ASSETS IS INSTEAD PICKED UP BY THE FUND INVOLVED STARTING JULY 12 SCHWAB IS EXPANDING THE NOFEE PROGRAM TO INCLUDE ANOTHER 100 FUNDS AMONG THE FUND COMPANIES JOINING THE PROGRAM ARE BENHAM GROUP EVERGREEN FUNDS IAI FUNDS MONTGOMERY FUNDS STRONG FUNDS AND TWENTIETH CENTURY INVESTORS THE NOFEE PROGRAM NOW ACCOUNTS FOR 4 BILLION OF THE 18 BILLION IN SCHWAB'S MUTUAL FUND MARKETPLACE ALTHOUGH MANY MAJOR NOLOAD AND LOWLOAD FUND GROUPS PARTICIPATE IN THE NOFEE PROGRAM TWO EXCEPTIONS ARE BIG ONES FIDELITY INVESTMENTS AND VANGUARD GROUP THE US'S TWO LARGEST FUND COMPANIES MUTUAL FUNDS ARE THE FASTESTGROWING PART OF OUR BUSINESS RIGHT NOW SAYS TOM SEIP A SCHWAB EXECUTIVE VICE PRESIDENT AND THE NOTRANSACTIONFEE PROGRAM IS THE FASTESTGROWING PART OF MUTUAL FUNDS INVESTORS WHO USE THE SCHWAB FUND MARKETPLACE GET CONSOLIDATED STATEMENTS SHOWING ALL THEIR DIFFERENT FUND HOLDINGS AND CAN OFTEN GET INTO FUNDS FOR LESS THAN THE PUBLISHED INVESTMENT MINIMUM INVESTORS ARE ALSO ABLE TO MAKE SWITCHES BY TELEPHONE BETWEEN FUNDS FROM DIFFERENT FUND COMPANIES 9307060008 930706 LAW CANADA BANS US MEDIA FROM MANSLAUGHTER TRIAL A CANADIAN COURT HAS BANNED US NEWSPAPERS AND TV STATIONS FROM COVERING A MANSLAUGHTER TRIAL IN THE BORDER COMMUNITY OF ST CATHARINE'S ONTARIO JUSTICE FRANCIS KOVACS WILL ALSO BAN THE PUBLIC FROM THE TRIAL OF KARLA TEALE ALLOWING ONLY CANADIAN CORRESPONDENTS AND MEMBERS OF THE VICTIMS' FAMILIES TO ATTEND EVERYTHING BUT THE VERDICT AND SENTENCE IF ANY LIKELY WOULD REMAIN SECRET FOR AS LONG AS TWO YEARS UNDER THE TERMS OF THE PROPOSED BAN THE BAN WAS ORDERED AT THE REQUEST OF THE ONTARIO GOVERNMENT WHICH FEARED THAT DETAILS OF ANY TESTIMONY WOULD PREJUDICE THE TRIAL OF MRS TEALE'S HUSBAND PAUL WHO IS CHARGED WITH FIRSTDEGREE MURDER IN CONNECTION WITH THE DEATHS OF TWO TEENAGE GIRLS THE JUDGE EXCLUDED THE US PRESS FROM THE COURTROOM SINCE IT WOULD BE DIFFICULT TO CHARGE US CITIZENS WITH CONTEMPT OF COURT IN CANADA IF THE PUBLICATION BAN WAS BROKEN THE EXCLUSION HIGHLIGHTS THE DIFFERENCE IN THE WAY CANADIAN AND US COURTS HANDLE THE ISSUE OF THE PUBLIC'S RIGHT TO KNOW DETAILS OF A TRIAL CANADIAN COURTS HAVE FOCUSED ON THE ACCUSED'S RIGHT TO A FAIR TRIAL AND PUBLICATION BANS DURING THE COURSE OF A TRIAL ARE NOT UNCOMMON IN THE US COURTS SHUN BANS WHEREVER POSSIBLE RELYING ON THE SEQUESTRATION OF JURORS AND GIVING DEFENSE ATTORNEYS GREAT LATITUDE IN CHALLENGING THE OBJECTIVITY OF POTENTIAL JURORS AT LEAST ONE CANADIAN NEWSPAPER IS SET TO APPEAL THE PUBLICATION BAN THE GLOBE AND MAIL A TORONTOBASED NATIONAL NEWSPAPER SAYS IT WILL SEEK TO OVERTURN THE DECISION BASED ON THE FACT THAT MR TEALE THE COACCUSED IN THE DEATHS OF THE TWO GIRLS HIMSELF OPPOSES THE BAN 9307060007 930706 BUSINESS BRIEF DUPONT SAYS PLAINTIFF IN CALIFORNIA DROPS CLAIMS IN BENLATE CASE WILMINGTON DEL DUPONT CO SAID A PLAINTIFF WHO HAD FILED SUIT IN CALIFORNIA ALLEGING DAMAGES FROM THE COMPANY'S BENLATE DF FUNGICIDE DROPPED HIS CLAIMS THE CHEMICAL CONCERN SAID THE SAN DIEGO SUPERIOR COURT AT THE REQUEST OF PLAINTIFF MARSDEN DARIEN DISMISSED THE SUIT WITH PREJUDICE MEANING THE CASE CAN'T BE REINSTATED MR DARIEN HAD BEEN SEEKING DAMAGES IN EXCESS OF 25 MILLION BECAUSE DUPONT'S BENLATE PRODUCT HAD ALLEGEDLY CAUSED DAMAGE TO HIS EXOTIC PALMS THE COMPANY CURRENTLY FACES HUNDREDS OF BENLATE LAWSUITS AROUND THE COUNTRY THE MOST PROMINENT CASE AND THE FIRST ONE TO GO TO TRIAL IS SET TO OPEN TODAY IN US DISTRICT COURT IN COLUMBUS GA FOUR GROWERS ARE SEEKING 158 MILLION IN DAMAGES PRETRIAL DISCLOSURES IN THAT CASE HAVE SPAWNED DAMAGING PUBLICITY FOR DUPONT AND THE TRIAL JUDGE HAS ALREADY FINED THE COMPANY 1 MILLION FOR FAILING TO PROVIDE THE PLAINTIFFS WITH CERTAIN DOCUMENTS DUPONT RECALLED THE WIDELY USED BENLATE DRY FLOWABLE PRODUCT IN 1991 AFTER FARMERS REPORTED IT WAS DAMAGING CROPS AND ORNAMENTAL PLANTS FOLLOWING THE RECALL THE COMPANY PAID 500 MILLION IN DAMAGES TO GROWERS MOSTLY IN FLORIDA BUT DUPONT HALTED ALL SUCH PAYMENTS IN NOVEMBER SAYING AN INDEPENDENT TEAM OF SCIENTISTS IT HAD ASSEMBLED HAD DETERMINED THAT BENLATE COULDN'T HAVE CAUSED THE DAMAGES THE CALIFORNIA CASE DROPPED LAST WEEK HASN'T DRAWN MUCH PUBLICITY DUPONT SAID IT WAS CONVINCED THE CASE LACKED MERIT FROM THE OUTSET AND EMPHASIZED THAT IT HADN'T SETTLED THE CALIFORNIA CASE BUT RATHER THE PLAINTIFF SIMPLY DROPPED THE SUIT NEITHER MR DARIEN NOR HIS ATTORNEY COULD BE REACHED FOR COMMENT 9307060006 930706 INTERNATIONAL BRITISH AEROSPACE AND GEC QUIT TALKS ON A JOINT VENTURE LONDON BRITISH AEROSPACE PLC AND BRITAIN'S GENERAL ELECTRIC CO ABRUPTLY ENDED DISCUSSIONS ON FORMING A JOINT DEFENSEINDUSTRY VENTURE PARTLY BECAUSE WORD OF THE DELICATE TALKS WAS MADE PUBLIC OVER THE WEEKEND AT GEC AND BRITISH AEROSPACE I THINK WE WERE BOTH UPSET BY THE LEAKS TO THE PRESS SAID ROY GARDNER MANAGING DIRECTOR OF GEC'S MARCONI DEFENSE DIVISION WHILE DECLINING TO ELABORATE HE SAID THE DECISION TO END THE JOINTVENTURE DISCUSSIONS CAME OVER THE WEEKEND ANOTHER SOURCE CLOSE TO THE NEGOTIATIONS SAID THE CHANGE OF HEART CAME AFTER LONDON'S SUNDAY TIMES NEWSPAPER REPORTED THE EXISTENCE OF THE TALKS EVEN WITHOUT THE DISCLOSURE THE POLITICAL OBSTACLES WOULD BE FORMIDABLE FOR ANY JOINT VENTURES OF BRITAIN'S TWO BIGGEST DEFENSE CONTRACTORS BESIDES FACING THE SCRUTINY OF ANTITRUST REGULATORS A MERGER WOULD RISK A VETO BY BOTH COMPANIES' MAIN CUSTOMER THE BRITISH MINISTRY OF DEFENSE A MERGER MIGHT HAVE RISKED UNDERMINING THAT MINISTRY'S PROCUREMENT POLICY A COMBINATION BY THE TWO COMPANIES WOULD HAVE BEEN ONE OF THE BOLDEST REORGANIZATIONS IN THE WESTERN DEFENSE INDUSTRY SINCE THE COLD WAR'S END BRITISH AEROSPACE IS THE WEST'S FIFTH LARGEST DEFENSE CONTRACTOR WHILE GEC WHICH IS UNRELATED TO GENERAL ELECTRIC CO OF STAMFORD CONN RANKS NINTH LIKE OTHER DEFENSE CONTRACTORS REELING FROM US AND EUROPEAN DEFENSEBUDGET CUTS THE TWO COMPANIES HAVE BEEN HUNTING FOR WAYS TO CUT COSTS AND ADJUST TO A MORECOMPETITIVE WEAPONS MARKET FORMING ONE OR MORE JOINT VENTURES WAS AMONG THE POSSIBILITIES UNDER DISCUSSION AT THE COMPANIES FOR SOME MONTHS 9307060005 930706 MARKETING THE BOOK TRADE BY MEG COX AUTHOR ROBERT JAMES WALLER IS OUTSELLING JOHN GRISHAM AND SCOTT TUROW BUT CAN HE TOP ROD STEWART AND JANET JACKSON ON THE MUSIC CHARTS THE BRIDGES OF MADISON COUNTY A BITTERSWEET SOME SAY SAPPY LOVE STORY HAS SOLD NEARLY 25 MILLION COPIES AND IS THE BESTSELLING HARDCOVER NOVEL IN THE COUNTRY IT WAS THE FIRST NOVEL BY MR WALLER A 53YEAROLD FORMER BUSINESSSCHOOL DEAN WHO ONCE DREAMED OF BEING A FAMOUS CROONER AS HE HAULED HIS GUITAR AROUND TO HOLIDAY INN LOUNGES WHILE PROMOTING HIS BOOK ON OPRAH ABOUT A MONTH AGO MR WALLER SANG A SONG HE WROTE CALLED THE MADISON COUNTY WALTZ ABOUT THE CHARACTERS IN THE BOOK NOW HE HAS A FIVEALBUM RECORDING DEAL BRIDGES WAS PUBLISHED BY TIME WARNER'S WARNER BOOKS A SISTER COMPANY AT THE MEDIA GIANT ATLANTIC RECORDING IS PRODUCING MR WALLER'S ALBUMS THE FIRST THE BALLADS OF MADISON COUNTY WILL BE RELEASED LATE THIS MONTH WITH 10 SONGS MOSTLY SENTIMENTAL COUNTRY TUNES HALF OF THEM WRITTEN BY THE AUTHOR THE MARKETING CAMPAIGN FOR THE ALBUM WHICH FEATURES THE BOOK JACKET'S PHOTOGRAPH OF A COVERED BRIDGE IS AIMED AT BOTH BOOK BUYERS AND RECORD BUYERS MR WALLER HAS FILMED A MUSIC VIDEO FOR HIS WALTZ NUMBER A ROMANTIC VIDEO BATHED IN GOLD LIGHT SHOT BY THE BRIDGES IN IOWA SAYS DOUG MORRIS ATLANTIC'S CHAIRMAN THE VIDEO IS HEADED FOR THE VH1 CABLE CHANNEL ATLANTIC AND WARNER ALSO PLAN A BIG AD CAMPAIGN FOR MAGAZINES RADIO AND TV FOLLOWED BY A CONCERT TOUR THAT MAY INCLUDE CARNEGIE HALL A SHORT COMMERCIAL FOR TIME WARNER CABLE SYSTEMS WILL FEATURE THE MELLOW WHITEHAIRED MR WALLER SINGING WITH AN 800 NUMBER FOR TELEPHONE ORDERS THE PROBLEM IS THIS IS AN ACT FOR ADULTS WHO DON'T GO TO RECORD STORES MUCH SAYS AN ATLANTIC SPOKESMAN IF PEOPLE HEAR HIM FOR JUST 20 SECONDS THEY'LL SEE HE'S A REAL SINGER MORE AUTHORS WRITE THEIR WORKS ON COMPUTERS AND USE COMPUTER NETWORKS FOR RESEARCH NOW PUBLISHERS ARE REALIZING THE NETWORKS CAN BE USED TO PROMOTE BOOKS TOO PUBLISHERS HAVE BEGUN TO LOBBY DIGBY DIEHL A CRITIC AND COMMENTATOR WHO HAS A DAILY BOOK COLUMN ON THE PRODIGY NETWORK SEVERAL MONTHS AGO MR DIEHL STARTED A BULLETIN BOARD ON THE NETWORK WHERE HE COLLECTS HUNDREDS OR EVEN THOUSANDS OF QUESTIONS THAT PRODIGY SUBSCRIBERS WANT TO ASK A GIVEN AUTHOR HE THEN DELIVERS A SELECTION TO THE AUTHOR USUALLY IN A PHONE INTERVIEW AND POSTS THE WRITER'S ANSWERS BACK ON THE BULLETIN BOARD AMONG MR DIEHL'S GUESTS SO FAR HAVE BEEN MYSTERY WRITERS SUE GRAFTON AND ROBERT PARKER NOVELIST SUSAN ISAACS AND STOCK PICKER PETER LYNCH FORMER MANAGER OF FIDELITY'S MAGELLAN FUND SUBSCRIBERS' QUESTIONS RANGE FROM THE PEDANTIC TO THE PERSONAL MR LYNCH WAS ASKED FOR A STOCKMARKET PREDICTION WHILE MS ISAACS WAS ASKED WHETHER HER OWN SEX LIFE IS AS DYNAMIC AS THAT OF HER CHARACTERS MS ISAACS'S PUBLISHER HARPERCOLLINS SAYS IT PUSHED TO GET HER ON LINE AND WE'RE THRILLED THIS IS A READING AUDIENCE PUBLISHERS SAY THEY CAN'T RECALL A TIME SINCE JAWS AND THE EXORCIST TWO DECADES AGO WHEN MOVIES GAVE SUCH A BOOST TO THE BOOKS THAT INSPIRED THEM IT'S NO ACCIDENT THAT THE TWO AUTHORS HOGGING THE PAPERBACK BESTSELLER LIST THIS SUMMER JOHN GRISHAM AND MICHAEL CRICHTON WROTE TITLES ADAPTED FOR CURRENT MOVIES THE SUMMER'S MEGAHIT FILM JURASSIC PARK IS ALSO THE SUMMER'S NO 1 PAPERBACK NOVEL MR CRICHTON'S NOVEL HAS SOLD NEARLY EIGHT MILLION COPIES IN PAPERBACK AND HAS BEEN NO 1 ON THE NEW YORK TIMES PAPERBACK FICTION LIST FOR EIGHT WEEKS MR CRICHTON'S PUBLISHER IS THE KNOPF DIVISION OF RANDOM HOUSE WHOSE PAPERBACK IMPRINT BALLANTINE ALSO HAS A WINNER IN THE MAKING OF JURASSIC PARK ABOUT THE MOVIE IT HAS SOLD NEARLY 300000 COPIES AND WILL HIT NO 1 ON THE TIMES'S PAPERBACK NONFICTION LIST NEXT SUNDAY BALLANTINE HAS BEEN SHREWD IN USING JURASSIC PARK TO PROMOTE MR CRICHTON'S PREVIOUS TITLES INCLUDING RISING SUN WHICH HAS BEEN ADAPTED FOR A MOVIE SCHEDULED TO OPEN JULY 30 THE PUBLISHER CREATED SPECIAL STORE DISPLAYS THAT HOLD A VARIETY OF CRICHTON TITLES AND NEW BOOK JACKETS ON THE OLDER BOOKS MENTION JURASSIC PARK AS A RESULT TWO OLDER CRICHTON TITLES ARE ALSO ON THE TIMES BESTSELLER LIST INCLUDING CONGO FIRST PUBLISHED IN 1980 OTHER PUBLISHERS ARE ALSO TRYING TO MAXIMIZE THEIR MOVIE TIEINS DOUBLEDAY MR GRISHAM'S PUBLISHER HAS BEGUN SELLING PAPERBACK COPIES OF THE FIRM WITH THE MOVIE POSTER ON THE COVER NEARLY TWO MILLION COPIES ARE IN STORES OR HAVE SOLD IN JUST TWO WEEKS ON TOP OF THE SEVEN MILLIONPLUS PAPERBACK COPIES SOLD IN THE ORIGINAL COVER DOUBLEDAY ALSO HAS BOUGHT ONSCREEN ADVERTISING IN 1000 MOVIE THEATERS A SERIES OF SLIDES SHOW THE AUTHOR AS WELL AS COPIES OF THE FIRM AND MR GRISHAM'S OTHER BOOKS DISPLAYS HOLDING THE FIRM IN BOOKSTORES HAVE ENTRY BLANKS FOR A SWEEPSTAKES THE TOP PRIZE IS A WEEK'S TRIP TO THE CAYMAN ISLANDS A PROMINENT LOCALE IN THE BOOK AND MOVIE FOR 99 YEARS IN A ROW ROBERT FULGHUM WANTS TO PROMOTE MORE THAN HIS NEXT BOOK MAYBE MAYBE NOT ON A 22CITY BOOK TOUR IN SEPTEMBER IN EACH CITY TICKETS WILL BE SOLD TO SEE HIM TELL STORIES AND PERFORM WITH THE PROCEEDS GOING TO LOCAL CHARITIES A WALDENBOOKS STORE IN FAYETTEVILLE ARK HAD PERHAPS THE BIGGESTEVER AUTHOR AUTOGRAPH SESSION 88 WRITERS OF WESTERN NOVELS IN TOWN FOR A CONVENTION HELPED THE STORE SELL 800 BOOKS IN 90 MINUTES 9307060004 930706 SEC SAYS ACCOUNTANT TWO FORMER OFFICIALS OVERSTATED ABQ'S NET WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION ACCUSED A NEW MEXICO ACCOUNTANT AND TWO FORMER OFFICERS OF AN ABQ CORP UNIT OF OVERSTATING THE COMPANY'S EARNINGS BY SEVERAL MILLION DOLLARS ABQ'S FORMER OUTSIDE AUDITOR JAMES BURTON OF ALBUQUERQUE WHO OVERSAW ABQ'S ANNUAL AUDIT AS A PARTNER AT KPMG PEAT MARWICK AGREED TO A CENSURE BY THE SEC WITHOUT ADMITTING OR DENYING WRONGDOING PEAT MARWICK WASN'T A TARGET OF THE SEC'S ADMINISTRATIVE PROCEEDING SIMILARLY CHARLES A HAEGELIN FORMER PRESIDENT OF ABQ DEVELOPMENT CORP A REAL ESTATE SUBSIDIARY OF ABQ BANK AND KEITH HEISE THE THRIFT'S FORMER CHIEF FINANCIAL OFFICER AGREED TO ABSTAIN FROM VIOLATING SEC RULES IN THE FUTURE NEITHER MAN ADMITTED NOR DENIED WRONGDOING THEIR LAWYERS IN ALBUQUERQUE COULDN'T BE REACHED FOR COMMENT MR BURTON'S LAWYER RICHARD KLEIN OF NEW YORK'S WILLKIE FARR & GALLAGHER SAID HIS CLIENT SETTLED THE MATTER TO AVOID PROTRACTED LITIGATION MR KLEIN NOTED THAT THE SEC ACTION PLACES NO RESTRICTION ON HIS ABILITY TO PRACTICE AS AN ACCOUNTANT THE SEC TOOK ADMINISTRATIVE ACTION AGAINST THE THREE MEN FOR THEIR ALLEGED ROLES IN OVERSTATING ABQ'S EARNINGS IN THE LATE 1980S AMONG OTHER THINGS THE MEN WERE ACCUSED OF CLAIMING PROFITS ON LOANS MADE BY ABQ'S THRIFT UNIT WHEN THE TRANSACTIONS SHOULD HAVE BEEN TREATED AS EXCHANGES THE COMPANY BASED IN ALBUQUERQUE SUBSEQUENTLY RESTATED SEVERAL QUARTERS OF EARNINGS DECLARING LOSSES WHERE IT HAD PREVIOUSLY REPORTED PROFITS IN A RELATED ACTION FEDERAL THRIFT REGULATORS DECLARED THE COMPANY'S THRIFT UNIT ABQ BANK INSOLVENT AND CLOSED IT IN MAY 1991 9307060003 930706 QUARTERLY MUTUAL FUNDS REVIEW MUTUAL FUND CEOS FIND INDUSTRY BOOM REFLECTED IN PAYCHECKS NEW YORK LAST YEAR'S BOOM IN THE MUTUAL FUND INDUSTRY WAS ALSO GOOD FOR MUTUAL FUND CHIEF EXECUTIVES' PAYCHECKS A SURVEY OF 13 PUBLIC FUND COMPANY CHIEF EXECUTIVES' TOTAL COMPENSATION COMPILED BY NEW YORK NEWSLETTER FUND ACTION FOUND THAT THE MEDIAN CHIEF'S PAY INCREASED 23 THE BIGGEST GAIN AND HIGHEST TOTAL COMPENSATION WENT TO JOHN NUVEEN CEO RICHARD FRANKE WHO TOOK HOME 196 MILLION THAT TOTAL INCLUDED A 16 MILLION RESTRICTED STOCK AWARD WHEN NUVEEN WENT PUBLIC LAST YEAR TWO CHIEF EXEXUTIVES SAW THEIR PAY DECLINE BASSETT WINMILL CHIEF EXECUTIVE OF BULL & BEAR GROUP SAW HIS COMPENSATION FALL 6 TO 156000 MR WINMILL WAS THE LOWESTPAID CHIEF EXECUTIVE IN THE SURVEY ONE FUND CHIEF EXECUTIVE WHO WASN'T ON THE LIST WAS JOHN BOGLE HEAD OF VANGUARD GROUP THE US'S SECONDLARGEST MUTUAL FUND GROUP AND A FIRM OWNED BY THE SHAREHOLDERS OF ITS MUTUAL FUNDS TWO NEWSLETTERS HAVE ESTIMATED MR BOGLE'S 1992 COMPENSATION IN MARCH MUTUAL FUND FORECASTER ESTIMATED HIS PAY AT 27 MILLION AND RECENTLY INDEPENDENT ADVISER FOR VANGUARD INVESTORS ESTIMATED IT AT 33 MILLION THE HIGHER FIGURE WOULD HAVE PUT MR BOGLE AS THE FOURTH HIGHESTPAID FUND CHIEF EXECUTIVE ON THE FUND ACTION LIST AFTER MR FRANKE DAVE WILLIAMS OF ALLIANCE CAPITAL MANAGEMENT 9 MILLION AND HOWARD STEIN OF DREYFUS CORP 37 MILLION THE LOWER FIGURE WOULD HAVE MADE HIM FIFTH HIGHEST AFTER LAWRENCE J LASSER OF PUTNAM INVESTMENTS A SUBSIDIARY OF MARSH & MCLENNAN 28 MILLION THE COMPENSATION OF MOST FUND GROUP CHIEF EXECUTIVES INCLUDING EDWARD C JOHNSON III HEAD OF BOSTON FUND GIANT FIDELITY INVESTMENTS ISN'T AVAILABLE BECAUSE THE FIRMS ARE CLOSELY HELD OR ARE SUBSIDIARIES OF OTHER FIRMS 9307060002 930706 ECONOMY ECONOMISTS LOOK FOR MODERATE GROWTH IN SECOND HALF BUT WARN CREATION OF NEW JOBS WILL REMAIN SLUGGISH BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JOB HUNTERS BEWARE EVEN THOUGH THE ANEMIC ECONOMY WILL GROW STRONGER IN THE SECOND HALF IT PROBABLY WON'T BE STURDY ENOUGH TO PROVIDE MUCH ENCOURAGEMENT TO MANY PEOPLE SEEKING JOBS ACCORDING TO ECONOMISTS PARTICIPATING IN THE WALL STREET JOURNAL'S SEMIANNUAL SURVEY MOST OF THE 44 ECONOMISTS PREDICT MODERATE ECONOMIC GROWTH IN THE NEXT SIX MONTHS AND IN 1994'S FIRST HALF WITH ONLY SLIGHTLY HIGHER INTEREST RATES BUT WITH COMPANIES INCREASINGLY WORRIED ABOUT LOW CONSUMER CONFIDENCE AND THE LIKELIHOOD OF HIGHER TAXES BUSINESS LEADERS ARE UNLIKELY TO GO ON A HIRING BINGE JOB CREATION GENERALLY WILL BE WAY BELOW PAR OVER THE NEXT YEAR PREDICTS IRWIN L KELLNER CHIEF ECONOMIST AT CHEMICAL BANKING CORP INSTEAD OF HIRING LARGE NUMBERS OF ADDITIONAL REGULAR FULLTIME EMPLOYEES MANY COMPANIES WILL RELY INCREASINGLY ON PARTTIME WORKERS TEMPORARY WORKERS AND A LONGER WORK WEEK FOR EXISTING STAFF MR KELLNER SAYS HE AND MOST OF THE OTHER ECONOMISTS EXPECT ONLY SLIGHT DECLINES LATER THIS YEAR IN THE UNEMPLOYMENT RATE WHICH ROSE TO 7 IN JUNE FROM 69 IN MAY THE LABOR DEPARTMENT SAID ON FRIDAY THAT THE ECONOMY PRODUCED ONLY 13000 NEW JOBS LAST MONTH FAR BELOW THE 130000JOB INCREASE THAT MANY ANALYSTS HAD EXPECTED THE FRIDAY EMPLOYMENT FIGURES COUPLED WITH OTHER RECENT REPORTS PERSUADED NUMEROUS FORECASTERS TO LOWER THEIR ECONOMIC AND INTERESTRATE FORECASTS FOR EXAMPLE NEAL M SOSS MANAGING DIRECTOR AT FIRST BOSTON CORP SLASHED HIS FORECAST FOR THE ECONOMIC GROWTH RATE IN THIS YEAR'S SECOND HALF TO 3 FROM HIS EARLIER ESTIMATE OF 45 HE ALSO PREDICTS THE 30YEAR TREASURY BOND YIELD NOW 666 WILL DROP TO 599 BY YEAR END ALLEN SINAI CHIEF ECONOMIST OF ECONOMIC ADVISORS INC AN AFFILIATE OF LEHMAN BROTHERS EXPECTS THE RATE ON 30YEAR HOME MORTGAGES NOW ABOUT 725 TO DROP TO 695 BY YEAR END RECENT GOVERNMENT REPORTS SUCH AS THOSE ON CONSUMER SPENDING HOUSING ACTIVITY AND CAPITAL SPENDING HAVE COME IN SO SOFT COMPARED TO EARLIER TRENDS SAYS MR SOSS ALSO YOU HAVE TREMENDOUS UNCERTAINTY ABOUT HEALTH CARE AN INDUSTRY THAT REPRESENTS ABOUT ONESEVENTH OF THE AMERICAN ECONOMY AND WHICH SEEMS TO BE AT THE THRESHOLD OF UNDERGOING THE SAME KIND OF RESTRUCTURING THAT HAS AFFECTED OTHER INDUSTRIES DESPITE THE LOWEST INTEREST RATES IN DECADES THE ECONOMY WILL BE RESTRAINED IN COMING MONTHS BY SUCH FACTORS AS HIGHER TAXES AND A DEEP SLUMP IN EUROPE THAT WILL HURT AMERICAN EXPORTERS MANY ECONOMISTS PREDICT THE US ECONOMY IS IN A DELICATE AND FRAGILE BALANCE SAYS JOSEPH WAHED SENIOR VICE PRESIDENT OF WELLS FARGO BANK THE LIKELY ENACTMENT OF CLINTON'S TAX PLAN IS THE MOST SERIOUS THREAT TO THE CURRENT ANEMIC RECOVERY BUT ON THE BRIGHT SIDE MOST ECONOMISTS EXPECT MODERATE INFLATION IT'S PRETTY CLEAR WE DO NOT HAVE AN INFLATION PROBLEM SAYS SAUL HYMANS OF THE UNIVERSITY OF MICHIGAN MOST FORECASTERS ALSO PREDICT THE DOLLAR WILL RISE AGAINST THE JAPANESE YEN AND GERMAN MARK AND MOST AGREE THE US ECONOMY WILL LOOK LIKE A POWERHOUSE COMPARED WITH MOST OF AMERICA'S MAJOR TRADING PARTNERS GERMANY ALREADY MIRED IN A DEEP RECESSION APPEARS HEADED FOR ESPECIALLY ROUGH SEAS ECONOMISTS WARN THIS GRIM FORECAST IS SHARED BY SOME GERMAN BUSINESS LEADERS THERE IS NO REASON TO BELIEVE THIS YEAR OR IN THE FIRST HALF OF 1994 WE WILL BE THROUGH WITH THE RECESSION SAYS HELMUT WERNER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF DAIMLERBENZ AG'S MERCEDESBENZ UNIT HERE ARE AVERAGE FORECASTS AS WELL AS OTHER PREDICTIONS AND OBSERVATIONS CULLED FROM THE JOURNAL'S SURVEY MODERATE ECONOMIC GROWTH THE ECONOMY WILL GROW AT A 31 ANNUAL RATE IN THIS YEAR'S SECOND HALF AND AT A 29 CLIP IN 1994'S FIRST HALF THESE ESTIMATES ARE BASED ON GROSS DOMESTIC PRODUCT ADJUSTED FOR INFLATION IN THE FIRST HALF OF 1993 THE ECONOMY EXPANDED AT AN ANEMIC 18 RATE ACCORDING TO THE AVERAGE ESTIMATE OF THE ANALYSTS IN THE SURVEY THE US ECONOMY STILL IS SOMEWHAT OF A SLUGGARD EXCEPT IN COMPARISON WITH MOST OF OUR INDUSTRIAL COUNTERPARTS AROUND THE GLOBE SAYS ROBERT DEDERICK EXECUTIVE VICE PRESIDENT OF NORTHERN TRUST CO IN CHICAGO MILD INFLATION CONSUMER PRICES WILL RISE AT A 3 CLIP DURING THE NEXT SIX MONTHS AND 34 IN THE FIRST HALF OF 1994 INFLATION IS VERY UNLIKELY TO ACCELERATE AND MAY DRIFT A BIT LOWER SAYS WILLIAM A BROWN OF JP MORGAN & CO OVER THE NEXT FIVE YEARS INFLATION WILL AVERAGE ABOUT 36 INDIVIDUAL ESTIMATES HOWEVER VARY WIDELY ALAN REYNOLDS OF THE HUDSON INSTITUTE IN INDIANAPOLIS FEARS INFLATION OVER THE NEXT FIVE YEARS WILL AVERAGE 6 IF WE'RE LUCKY BECAUSE THE POLICY MIX OF THIS ADMINISTRATION LIKE THAT OF JIMMY CARTER CONSISTS OF A WEAK DOLLAR EASY MONEY AND HIGH TAX RATES BUT A GARY SHILLING WHO HEADS AN ECONOMIC CONSULTING AND INVESTMENT ADVISORY COMPANY IN SPRINGFIELD NJ EXPECTS INFLATION WILL AVERAGE ONLY ABOUT 15 OVER THE NEXT FIVE YEARS SLIGHTLY HIGHER INTEREST RATES THE TREASURY'S BENCHMARK 30YEAR BOND WILL YIELD 684 AT YEAR END AND 698 BY MID1994 COMPARED WITH LAST FRIDAY'S 666 THE AVERAGE RATE ON CONVENTIONAL 30YEAR FIXEDRATE MORTGAGES NOW ABOUT 725 WILL CLIMB TO ABOUT 74 BY YEAR END AND 76 ONE YEAR FROM NOW THE YIELD ON THREEMONTH TREASURY BILLS WILL RISE TO 334 BY YEAR END AND 37 IN MID1994 FROM 299 AS OF FRIDAY SLIGHTLY LOWER UNEMPLOYMENT THE CIVILIAN UNEMPLOYMENT RATE WILL DECLINE TO 67 BY NOVEMBER AND 65 IN MAY 1994 A RISING DOLLAR BY YEAR END THE DOLLAR WILL BUY 112 JAPANESE YEN UP FROM 109 LAST FRIDAY BY MID1994 THE DOLLAR WILL BUY 116 YEN THE DOLLAR ALSO WILL RISE SLIGHTLY AGAINST THE GERMAN MARK THE DOLLAR WILL BE WORTH 172 MARKS BY YEAR END AND 178 MARKS BY MID1994 AS OF FRIDAY THE DOLLAR BOUGHT ABOUT 170 MARKS STEADY FEDERAL RESERVE POLICY MOST AGREE THE FEDERAL RESERVE WILL LEAVE ITS CREDIT POLICY UNCHANGED IN COMING WEEKS MOST ALSO AGREE THAT WHEN THE FED DOES MOVE IT WILL BE TO RAISE SHORTTERM INTEREST RATES BUT THE INCREASE WHEN IT COMES WILL BE SMALL WEST COAST WEAKNESS THE WEST COAST WILL BE THE WEAKEST REGION IN THE NATION MANY ANALYSTS AGREE CALIFORNIA IS STILL IN RECESSION BECAUSE OF CONTINUED CUTBACKS IN DEFENSE SAYS MR WAHED OF WELLS FARGO MARIA FIORINI RAMIREZ WHO HEADS HER OWN CONSULTING FIRM SAYS CALIFORNIA IS STILL SUFFERING FROM A DEPRESSED REAL ESTATE MARKET AND HEAVY EXPOSURE TO THE DEFENSE SECTOR BY CONTRAST THE SOUTH AND MIDWEST WILL BE AMONG THE STRONGEST REGIONS MANY ANALYSTS SAY THE MIDWEST WILL RIDE THE WAVE OF IMPROVING VEHICLE SALES AND ASSEMBLIES PREDICTS STUART G HOFFMAN OF PNC BANK CORP IN PITTSBURGH SAMUEL KAHAN OF FUJI SECURITIES SAYS NEW ENGLAND IS BEGINNING TO COME OUT OF ITS SHELL BUT THE PROCESS IS SLOW BUY TAXFREE BONDS PRESIDENT CLINTON IS TURNING INTO THE BEST FRIEND THE MUNICIPAL BOND BUSINESS EVER HAD I THINK THE MOST REWARDING INVESTMENT OVER THE NEXT SIX MONTHS WILL BE MUNICIPAL BONDS SAYS ELLIOTT PLATT OF DONALDSON LUFKIN & JENRETTE SECURITIES CORP TAXFREE BONDS PROVIDE OPPORTUNITIES THAT INVESTORS DO NOT YET FULLY APPRECIATE HE SAYS CONCERN ABOUT PRESIDENT CLINTON MANY ECONOMISTS WANT BIGGER SPENDING CUTS AND SMALLER TAX INCREASES SOME ARE ESPECIALLY UPSET AT THE PRESIDENT FOR BREAKING CAMPAIGN PROMISES BUT OTHERS SUCH AS LAWRENCE A KUDLOW OF BEAR STEARNS & CO VIEW IT DIFFERENTLY HIS PROBLEM IS HE DIDN'T BREAK ENOUGH PROMISES SAYS MR KUDLOW WHO WORKED AS AN ECONOMIST IN PRESIDENT REAGAN'S OFFICE OF MANAGEMENT AND BUDGET OTHER ECONOMIC CONCERNS IN THE FACE OF ECONOMIC GROWTH THAT IS SLOWER THAN IN ANY PREVIOUS POSTWAR EXPANSION CHEMICAL'S MR KELLNER SAYS BUSINESSES AND CONSUMERS ARE FACED WITH THE PROSPECT OF HIGHER TAXES AS WELL AS AN INCREASE IN HEALTHCARE PREMIUMS THIS IS ONLY WORSENING THE UNCERTAINTY THAT ALREADY EXISTS MR KELLNER ALSO WORRIES ABOUT THE EFFECTS OF DEFENSE SPENDING CUTBACKS HUGE DEBTS THAT CONSUMERS AND BUSINESSES HAVE TAKEN ON STATE AND LOCAL GOVERNMENT BUDGET WOES REAL ESTATE OVERBUILDING DURING THE 1980S EUROPEAN AND JAPANESE ECONOMIC SLOWDOWNS TIGHTER FISCAL POLICY AND THE POSSIBILITY OF LESS GENEROUS FEDERAL RESERVE MONETARY POLICY EVEN GLOOMIER ARE PHILIP BRAVERMAN OF DKB SECURITIES AND GARY SHILLING BOTH FEAR ANOTHER RECESSION MAY BE BREWING BOTH ALSO PREDICT CONTINUED DECLINES IN INTEREST RATES AND THUS THEY RECOMMEND BUYING LONGTERM TREASURY BONDS THE RISK OF A RECESSION BY NEXT YEAR HAS ALREADY MOUNTED TO 40 OR MORE SAYS MR BRAVERMAN THAT RISK WOULD RISE TO 50 OR MORE IF A HEALTHCARE PLAN IS ENACTED WITH EVEN HIGHER TAXES HE SAYS PEOPLE ARE WORRYING ABOUT LAYOFFS WHICH MAKE THEM WANT TO RESIST SPENDING SAYS MR SHILLING AND THEY WORRY BECAUSE THEIR GREATEST ASSET THEIR HOUSE IS NO LONGER APPRECIATING EUROSCLEROSIS EUROPEAN ECONOMIES WILL CONTINUE TO STRUGGLE IN COMING MONTHS BUT GERMANY'S WOES SHOULD LEAD TO LOWER EUROPEAN INTEREST RATES MAKING EUROPEAN GOVERNMENT BONDS AMONG THE ATTRACTIVE INVESTMENTS OVER THE NEXT YEAR BOND YIELD FORECASTERS DEMONSTRATED ONCE AGAIN HOW LUCRATIVE IT CAN BE TO LISTEN TO WHATEVER THEY SAY AND THEN BET EXACTLY THE OPPOSITE WAY JUST SIX MONTHS AGO THE CONSENSUS FORECAST CALLED FOR SLIGHTLY HIGHER BOND YIELDS THE AVERAGE FORECAST SHOWED THE YIELD ON 30YEAR TREASURY BONDS RISING TO 744 AS OF JUNE 30 FROM 739 AS OF LAST DEC 31 INSTEAD BOND YIELDS NOSEDIVED THE 30YEAR BOND YIELD TUMBLED TO 667 ON JUNE 30 BETTING AGAINST CONVENTIONAL WISDOM AMONG BOND FORECASTING GURUS WOULD HAVE BEEN A HIGHLY LUCRATIVE INVESTMENT STRATEGY FOR MOST OF THE PAST DECADE OR SO ACCORDING TO CALCULATIONS BY ROBERT A BECKWITT A LONGTIME READER OF THIS SURVEY AND PORTFOLIO MANAGER OF THE FIDELITY ASSET MANAGER FUNDS WHICH TOTAL ABOUT 8 BILLION IN THE PAST 23 SURVEYS ECONOMISTS GUESSED CORRECTLY ABOUT THE DIRECTION OF LONGTERM BOND YIELDS ONLY FIVE TIMES AND WERE WRONG THE OTHER 18 TIMES MR BECKWITT SAYS THUS INVESTORS TYPICALLY WOULD HAVE DONE REMARKABLY WELL IF THEY HAD RUSHED OUT AND BOUGHT LONGTERM BONDS WHENEVER ECONOMISTS PREDICTED HIGHER INTEREST RATES AND WHEN ECONOMISTS PREDICTED LOWER INTEREST RATES INVESTORS TYPICALLY WOULD HAVE PROSPERED BY ABANDONING LONGTERM BONDS IN FAVOR OF SHORTTERM TREASURY BILLS USING ECONOMISTS THIS WAY AS CONTRARY INDICATORS WOULD HAVE PRODUCED A SPARKLING TOTAL RETURN OF 142 A YEAR DATING BACK TO THE JANUARY 1982 SURVEY MR BECKWITT CALCULATES THAT STRATEGY WOULD EASILY HAVE BEATEN THE 86 TOTAL RETURN THAT AN INVESTOR WOULD HAVE RECEIVED BY FOLLOWING THE ECONOMISTS' ADVICE FOR EXAMPLE IF YOU BET AGAINST THE CONSENSUS IN JANUARY AND BOUGHT LONGTERM TREASURY BONDS WHEN ANALYSTS WERE FORECASTING HIGHER RATES YOUR TOTAL RETURN TO DATE WOULD HAVE BEEN AN IMPRESSIVE 121 MR BECKWITT SAYS BUT IF YOU ACCEPTED THE ECONOMISTS' ADVICE OF HIGHER RATES AND BOUGHT TBILLS YOUR TOTAL RETURN WOULD HAVE BEEN ONLY 16 AMONG 35 ANALYSTS WHO PARTICIPATED IN 10 OR MORE SURVEYS ONLY FOUR HAVE CORRECTLY PREDICTED THE DIRECTION OF BOND YIELDS OVER THE NEXT SIX MONTHS MORE THAN HALF THE TIME MR BECKWITT SAYS THOSE FOUR ARE MAURY HARRIS OF PAINEWEBBER INC LACY HUNT OF CARROLL MCENTEE & MCGINLEY INC DAVID JONES OF AUBREY G LANSTON & CO AND CAROL LEISENRING OF CORESTATES FINANCIAL IRONICALLY OF THE THREE OF THESE FOUR WHO PARTICIPATED IN THE JANUARY 1993 SURVEY ALL WERE WRONG ON THE DIRECTION OF BOND YIELDS I'M GLAD I'M A FUND MANAGER AND NOT AN ECONOMIST MR BECKWITT ADDS HE SAYS ECONOMIC FORECASTING CLEARLY IS A HUMBLING BUSINESS HERE IS A SUMMARY OF THE MOST AND LEAST ACCURATE SIXMONTH PREDICTIONS FROM THE JOURNAL'S PREVIOUS SURVEY PUBLISHED JAN 4 BEST BOND YIELD FORECAST EDWARD YARDENI OF CJ LAWRENCE HE PREDICTED 67 THE ACTUAL YIELD AS OF JUNE 30 WAS 667 OTHERS WHO CAME CLOSE MAUREEN ALLYN OF SCUDDER STEVENS & CLARK MR SHILLING MR BRAVERMAN OF DKB SECURITIES AND JAMES SMITH OF THE UNIVERSITY OF NORTH CAROLINA MR BROWN OF JP MORGAN EDWARD HYMAN OF ISI GROUP AND MIECZYSLAW KARCZMAR A NEW YORK ECONOMIC ADVISER AT DEUTSCHE BANK EACH PREDICTED 7 WORST BOND YIELD FORECAST GAIL FOSLER OF THE CONFERENCE BOARD SHE PREDICTED 840 WHICH WAS TOO HIGH BY 173 PERCENTAGE POINTS CURIOUSLY HER FORECAST WENT ASTRAY EVEN THOUGH SHE CORRECTLY PREDICTED HIGHER INFLATION IN THIS YEAR'S FIRST HALF ASKED HOW SHE COULD MISS SO BADLY ON BONDS SHE REPLIES THAT HER FORECAST WENT ASTRAY MORE BECAUSE OF PSYCHOLOGICAL FACTORS THAN ANYTHING ELSE SHE SAYS SHE ASSUMED INVESTORS WOULD REACT NEGATIVELY TO PRESIDENT CLINTON'S DEFICITREDUCTION PLAN BECAUSE IT WOULD BE LIGHT ON SPENDING CUTS INSTEAD INVESTORS BLEW AWAY FEARS ABOUT THE DEFICIT AND BOND YIELDS MELTED BEST SHORTTERM RATE FORECASTS A TIE BETWEEN MR YARDENI AND FOUR OTHERS MAUREEN ALLYN EDWARD HYMAN NORMAN ROBERTSON OF CARNEGIE MELLON UNIVERSITY AND FORMER CHIEF ECONOMIST AT MELLON BANK AND GARY SHILLING EACH PREDICTED 3 WHICH WAS OFF BY ONLY 007 PERCENTAGE POINT WILLIAM BROWN OF JP MORGAN ALSO CAME CLOSE WITH HIS FORECAST OF 315 WORST SHORTTERM RATE FORECAST RAYMOND WORSECK OF AG EDWARDS HE PREDICTED 445 BEST DOLLARYEN FORECAST IRWIN KELLNER OF CHEMICAL BANKING HE PREDICTED 115 YEN THE RIGHT ANSWER WAS 107 YEN WORST DOLLARYEN FORECAST JIM SMITH OF THE UNIVERSITY OF NORTH CAROLINA HE PREDICTED 157 YEN IT'S TOO SOON TO AWARD PRIZES FOR THE BEST AND WORST FORECASTS OF ECONOMIC GROWTH BECAUSE THE GOVERNMENT HASN'T RELEASED ITS ESTIMATE OF SECONDQUARTER ECONOMIC GROWTH YET BUT IT SEEMS SAFE TO SAY MOST EXPERTS WERE MUCH TOO OPTIMISTIC NANOT AVAILABLE ATREASURY BILL RATES ARE ON A BONDEQUIVALENT BASIS BGROSS DOMESTIC PRODUCT ADJUSTED FOR INFLATION SEASONALLY ADJUSTED ANNUAL RATE CCONSUMER PRICE INDEX ANNUAL RATE DAVERAGES FOR THE DECEMBER 1992 SURVEY PUBLISHED JANUARY 4 1993 ARE FOR THE 44 ANALYSTS POLLED AT THAT TIME EGOVERNMENT ESTIMATES OF GROSS DOMESTIC PRODUCT AND INFLATION FOR THE FIRST HALF OF 1993 ARE NOT YET AVAILABLE 9307060001 930706 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 7/16 SIX MONTHS 3 11/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN 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 2 1/2 LOW 2 1/4 NEAR CLOSING BID 2 1/2 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 309 30 TO 59 DAYS 310 60 TO 94 DAYS 314 95 TO 153 DAYS 315 154 TO 213 DAYS 330 214 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 316 30 DAYS 318 60 DAYS 320 90 DAYS CERTIFICATES OF DEPOSIT 261 ONE MONTH 265 TWO MONTHS 271 THREE MONTHS 288 SIX MONTHS 306 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 306 ONE MONTH 310 THREE MONTHS 329 SIX MONTHS BANKERS ACCEPTANCES 302 30 DAYS 303 60 DAYS 305 90 DAYS 309 120 DAYS 313 150 DAYS 320 180 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 1/4 3 1/8 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 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 MONDAY JUNE 28 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 305 13 WEEKS 314 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 696 60 DAYS 703 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 692 60 DAYS 702 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 9307020186 930702 BUSINESS BRIEF INTERLEAF INC SOFTWARE COMPANY TO POST FISCAL FIRSTPERIOD LOSS INTERLEAF INC WALTHAM MASS SAID IT WOULD REPORT A FISCAL FIRSTQUARTER LOSS FROM CONTINUING OPERATIONS OF ABOUT 1 MILLION OR SIX CENTS A SHARE ON REVENUE OF ABOUT 27 MILLION ITS STOCK FELL TO 7375 DOWN 125 OR 15 IN OVERTHECOUNTER TRADING YESTERDAY THE DOCUMENT SOFTWARE AND SERVICES COMPANY SAID RESULTS FOR THE QUARTER ENDED WEDNESDAY ALSO WOULD SHOW A GAIN OF 19 MILLION OR 11 CENTS A SHARE FROM ADOPTION OF NEW INCOMETAX ACCOUNTING AND A CHARGE OF 4 MILLION OR 24 CENTS A SHARE FROM ITS RECENT ACQUISITION OF AVALANCHE DEVELOPMENT CO A DOCUMENT ANALYSIS AND CONVERSION TECHNOLOGY COMPANY FOR 55 MILLION A YEAR EARLIER EARNINGS WERE 14 MILLION OR NINE CENTS A SHARE ON 265 MILLION OF REVENUE INTERLEAF SAID ITS OPERATING LOSS REFLECTS LOWER REVENUES ON CONTINUED WEAKNESS IN THE EUROPEAN MARKET AND ITS INABILITY TO CLOSE SEVERAL BIG SALES BY QUARTER'S END IT ALSO CITED REVENUE DECLINE IN THE BIG AEROSPACE AND DEFENSE SECTOR 9307020185 930702 WHO'S NEWS BEAUTICONTROL COSMETICS INC BEAUTICONTROL COSMETICS INC DALLAS ROBERT WARDBURNS 48 YEARS OLD FORMERLY PRESIDENT OF STANHOME DIRECT SELLING GROUP WAS NAMED TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS DIRECT SELLER OF COSMETICS 9307020184 930702 SPANISH TOURISM IS UP MADRID THE NUMBER OF TOURISTS VISITING SPAIN ROSE 29 IN THE FIRST FIVE MONTHS OF 1993 COMPARED WITH THE SAME PERIOD IN 1992 THE INDUSTRY TRADE AND TOURISM MINISTRY SAID BUT IN MAY THE NUMBER OF TOURISTS DROPPED 09 FROM MAY 1992 THE MINISTRY ADDED MORE THAN 16940000 PEOPLE ENTERED SPAIN IN THE FIRST FIVE MONTHS OF THE YEAR 483318 MORE THAN AT THE SAME TIME A YEAR EARLIER THE MINISTRY SAID 9307020183 930701 REPORT ON EUROPE EC EXPECTS ECONOMY TO CONTRACT 05 THIS YEAR LED BY 2 DECLINE IN GERMANY BY TERENCE ROTH FRANKFURT EUROPEAN COMMUNITY OFFICIALS EXPECT THEIR 12NATION ECONOMY TO DECLINE 05 THIS YEAR LED BY A NEARLY 2 CONTRACTION IN GERMANY EUROPE'S ECONOMIC LOCOMOTIVE THIS IS THE EC'S FIRST ECONOMIC CONTRACTION SINCE THE OIL CRISIS PEAKED IN 1975 THE EC COMMISSION A YEAR AGO PREDICTED BETTER THAN 2 EC ECONOMIC GROWTH FOR 1993 NOW IT IS PREDICTING A 125 EXPANSION IN 1994 BUT HENNING CHRISTOPHERSEN VICE PRESIDENT FOR ECONOMIC AFFAIRS AT THE COMMISSION SAYS 125 WON'T BE ENOUGH WE NEED AVERAGE GROWTH OF 3 TO 35 TO BREAK RISING UNEMPLOYMENT RATES HE SAID AT THE ANNUAL MEETING OF THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT IN PARIS IT IS CLEAR THAT WE ARE FAR AWAY FROM THAT SOME 22 MILLION WESTERN EUROPEANS NEARLY ONE IN NINE WORKERS ARE OUT OF WORK A MILLION MORE ARE EXPECTED TO JOIN THEM NEXT YEAR AS INDUSTRY SHEDS THOUSANDS OF JOBS INCREASINGLY IT APPEARS THAT WITHOUT STRUCTURAL REFORM EUROPE CAN'T GENERATE ENOUGH GROWTH TO CREATE JOBS SENIOR OECD OFFICIALS WORRY ABOUT A SOCIAL EXPLOSION RESULTING FROM THE RAPID RISE IN UNEMPLOYMENT PARTICULARLY THE GROWING INCIDENCE OF LONGTERM UNEMPLOYMENT AND YOUTHS WHO CAN'T FIND WORK WHEN DENMARK'S PROEUROPEAN UNITY POLITICIANS CELEBRATED THEIR VICTORY IN THAT COUNTRY'S SECOND REFERENDUM ON THE MAASTRICHT TREATY MAY 18 SOME ANALYSTS WERE MORE IMPRESSED BY THE VIOLENT ANTITREATY PROTESTS THAT OCCURRED ON COPENHAGEN'S STREETS RICHARD DAVIDSON INVESTMENT STRATEGIST FOR MORGAN STANLEY INTERNATIONAL IN LONDON WROTE AFTERWARD OF AN EERIE PREMONITION OF WHAT COULD HAPPEN IN DENMARK AND ELSEWHERE IN EUROPE IF UNEMPLOYMENT IS NOT CURBED RELIEF FOR LABOR MARKETS ISN'T EXPECTED UNTIL SERVICES AND HIGHVALUE MANUFACTURING CAN REPLACE SHRINKING TRADITIONAL INDUSTRIES A PROCESS EXPECTED TO BE MEASURED IN DECADES INSTEAD OF YEARS IN ITS RECENTLY PUBLISHED 1992 ANNUAL REPORT THE BANK FOR INTERNATIONAL SETTLEMENTS JUDGED THAT THE PROSPECTS FOR THE LONGTERM RISE IN UNEMPLOYMENT LOOK BLEAK EVEN WHEN OUTPUT RECOVERS AND IF INFLATION REMAINS LOW HELPING TO EXPLAIN WHY THAT IS SO IN EUROPE'S LARGEST ECONOMY DAIMLERBENZ AG CHAIRMAN EDZARD REUTER SAID LAST MONTH THAT EVEN A GERMAN RECOVERY WON'T RETURN GERMANY'S UNEMPLOYMENT RATES TO SINGLE DIGITS COMPANIES ARE BEING FORCED TO SCALE BACK COSTS AND WILL EMERGE FROM THE CURRENT RESTRUCTURING WITH LEANER OPERATIONS WITH THE RESULT THAT A FUTURE PICKUP IN DEMAND ISN'T LIKELY TO LEAD TO NEW HIRING EVEN THE GOOD NEWS TENDS TO CONFIRM THE GLOOM EUROPEAN INFLATION LONG A CHIEF POLICY CONCERN IS EASING AS ACTIVITY SLOWS EUROPEAN FINANCE MINISTERS WORRY THAT COUNTRIES WITH DEVALUED CURRENCIES COULD BEGIN LOSING GROUND AS THEIR WEAKENED CURRENCIES INVITE IMPORTED INFLATION NOW THE MARK IS SLIPPING IN THE EUROPEAN MONETARY SYSTEM ALLOWING OTHER EC CENTRAL BANKS TO CUT INTEREST RATES WITHOUT THEIR CURRENCIES COLLAPSING IN THE EMS GRID UNHAPPILY HOWEVER THE MARK'S WEAKNESS STEMS FROM THE GERMAN ECONOMY AND BONN'S FISCAL POLICIES ARE EDGING DEEPER INTO CRISIS WITH BROADER REPERCUSSIONS FOR THE REST OF EUROPE BY LATE SPRING ANNUAL INFLATION IN THE EC HAD SETTLED TO AN AVERAGE 34 ACCORDING TO THE EC'S EUROSTAT OFFICE THAT IS DOWN FROM 44 IN 1992 AND 52 IN 1991 PRICES IN APRIL ROSE THE LEAST IN DENMARK WHERE INFLATION WAS CLOCKED AT 11 AND THE MOST IN GREECE AT 162 GERMANY AND ITALY AT 43 SHARED SEVENTH PLACE IN THE 12COUNTRY COMMUNITY WHERE WILL THE RECOVERY COME FROM THE MOST POPULAR HOPE AMONG EUROPEAN CORPORATIONS IS THAT THE US RECOVERY WILL COME AND SAVE THEM SAYS IAN HARWOOD CHIEF ECONOMIST FOR SG WARBURG IN LONDON IN THE EARLY 1980S EUROPE WAS PULLED OUT OF RECESSION BY THE REAGAN BOOM WHEN THE SURGING DOLLAR ALSO HELPED TO MAKE EUROPEAN GOODS MORE COMPETITIVE NOW PEOPLE WANT HISTORY TO REPEAT ITSELF BUT IT WON'T MR HARWOOD SAYS MONETARY RESTRAINTS WITHIN THE EMS ARE TIGHTER THAN THEY WERE A DECADE AGO FISCAL DEFICITS AND DEBT LEVELS ARE HIGHER AND MORE OF AN OBSTACLE TO GOVERNMENT STIMULUS EFFORTS INDUSTRIES ARE COPING WITH MORE EXCESS CAPACITY AFTER THE INVESTMENT BOOM OF THE LATE 1980S MOREOVER EUROPEAN INDUSTRY IS BEGINNING A USSTYLE RESTRUCTURING THAT EMPHASIZES CAPITAL OVER LABOR THIS SUGGESTS FUNDS WILL FLOW TOWARD COMPUTERS INSTEAD OF NEW WORKERS AS INVESTMENT FOCUSES ON MODERNIZATION AND HIGHER VALUE PRODUCTS 9307020182 930701 REPORT ON EUROPE EUROPE'S SAFETY NETS BEGIN TO TEAR BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL HARD TIMES ARE EATING AWAY EUROPE'S SOCIALMARKET ECONOMIES GERMANY'S NONDENOMINATIONAL WELFARE ASSOCIATION WAS STUNNED WHEN IT LEARNED THAT ITS FUNDING FOR CARING FOR THE ELDERLY AND INFIRM COULD BE CUT BY 7 MILLION OR ROUGHLY HALF MANY OF THE THOUSANDS WHOM THE SOCIAL WORKERS BATHE COOK AND CLEAN FOR MAY NOW HAVE TO PAY MORE OR BE DROPPED OFF THE LISTS NOBODY IN BONN TOLD US WE READ IT IN THE NEWSPAPERS COMPLAINS ULRICH SCHNEIDER THE GROUP'S SOCIALPOLICY DIRECTOR IT WAS SO ABRUPT WE DON'T HAVE TIME TO FIND OTHER FUNDING BUT THIS IS THE NEW STYLE IN THESE DAYS OF THE ERODING SOCIAL STATE SAYS DR SCHNEIDER FOR 40 YEARS WE HAD A SOCIAL CONSENSUS IN THIS COUNTRY BUT NOW EVEN THE LAST NET IS FALLING AWAY THAT'S STILL FAR FROM TRUE HOWEVER AFTER DECADES OF SEEMINGLY SMOOTH RUNNING WESTERN EUROPE'S SOCIALMARKET ECONOMIES ARE BEGINNING TO INDICATE THAT REGAINING COMPETITIVENESS COULD MEAN A WRENCHING OVERHAUL REVERSING THE SOCIALMARKET TREND MEANS PARING DECADES OF SUPPORT PROGRAMS COVERING MOST FACETS OF EUROPEAN LIFE FROM CHILD ALLOWANCES AND GENEROUS PENSIONS TO JOB GUARANTEES INDUSTRIAL SUBSIDIES AND CHEAP HEALTH CARE IT WON'T BE EASY GERMAN ECONOMICS MINISTER GUENTHER REXRODT LOWERED THE BOOM WITH A PROPOSED HIT LIST OF SOCIAL PROGRAMS IN MAY DECLARING THAT GERMANY INCREASINGLY EXPORTS MORE JOBS THAN PRODUCTS EUROPE'S MOST ADVANCED WELFARE STATE SWEDEN HAS LED THE REVERSE TREND SINCE LAUNCHING IN 1991 THE BIGGEST ASSAULT EVER ON THE COUNTRY'S SOCIAL PROGRAMS AS PART OF A DEFICITREDUCTION PLAN BRITAIN IS WHITTLING DOWN STATE HEALTH SERVICES AND ITALY HAS SUSPENDED ITS RIGID WAGEINDEXATION SYSTEM AND IS EXPECTING BIGGER CHANGES DUTCH RIOT SQUADS CLASHED VIOLENTLY WITH 20000 STUDENTS IN THE CENTER OF THE HAGUE IN MAY THE STUDENTS WERE PROTESTING PLANNED CUTS IN THE AVAILABILITY OF FREE TRANSPORT AND AUTOMATIC UNEMPLOYMENT PAYMENTS BEGINNING ON GRADUATION DAY SPAIN SPARKED A GENERAL STRIKE LAST YEAR WHEN THE GOVERNMENT CUT UNEMPLOYMENT BENEFITS FRANCE IS TURNING FURTHER FROM ITS COSTLY TRADITION OF STATE OWNERSHIP WITH PLANNED SELLOFFS OF GOVERNMENTHELD COMPANIES BEGINNING LATER THIS YEAR TO BE SURE MUCH ISN'T CHANGING IMMEDIATELY BUT SOME ECONOMISTS PREDICT THAT REFORMS COULD GAIN MOMENTUM AS PRESSURE BUILDS TO TIGHTEN BLOATED GOVERNMENT DEFICITS AND GET INDUSTRIES MOVING AGAIN WHEN THESE MODELS SNAP YOU CANNOT PUT THEM BACK TOGETHER AGAIN SAYS DAVID ROCHE GLOBAL STRATEGIST FOR MORGAN STANLEY IN LONDON THE ITALIAN MODEL SNAPPED THE SWEDISH MODEL SNAPPED AND NOW THE GERMAN MODEL HAS SNAPPED AND THEY DON'T KNOW WHAT HAPPENED THERE ARE SEVERAL REASONS WHY THE CRUNCH IS HITTING NOW A DEEPENING RECESSION HAS EXACERBATED THE DRAG OF STRUCTURAL DEADWEIGHT PILING UP OVER DECADES MOST VISIBLY IN THE STEADY CLIMB IN LONGTERM UNEMPLOYMENT AT THE SAME TIME NEW COMPETITION FROM THE PACIFIC RIM A REVITALIZED US INDUSTRY AND CHEAPER PRODUCERS IN WORKHUNGRY EASTERN EUROPE ARE CUTTING INTO EUROPEAN PRODUCERS' PROFITS THE RESULT TRIMMING GOVERNMENT SPENDING CUTTING TAXES AND SCRAPING THE KEELS OF INDUSTRY BY DEREGULATING LABOR MARKETS AND CUTTING SOCIAL CONTRIBUTIONS THAT ARE ADDED TO EMPLOYEE PAYCHECKS POLICY MAKERS ARE CONCEDING NOW WHAT WAS UNUTTERABLE ONLY A FEW YEARS AGO EUROPEANS WILL EITHER HAVE TO LOSE BENEFITS OR LOSE JOBS I WISH EVERYONE IN THE COMMUNITY WOULD ACCEPT THAT THE FIRST GOAL IN 1993 AND FOR THE NEXT 10 YEARS HAS TO BE TO IMPROVE THE COMPETITIVENESS OF EUROPEAN INDUSTRY MARTIN BANGEMANN VICE PRESIDENT FOR INDUSTRIAL POLICY AT THE EUROPEAN COMMUNITY COMMISSION WARNED EARLIER THIS YEAR YOU CAN ONLY SUPPORT HIGHER LABOR COSTS IF YOU HAVE HIGHER PRODUCTIVITY AND THAT ISN'T THE CASE TODAY THE WAY IT WAS YEARS AGO EUROPEAN LABOR IS AS MUCH AS 50 MORE EXPENSIVE THAN ITS MAJOR COMPETITORS NOT BECAUSE HOURLY WAGES ARE THAT MUCH HIGHER BUT BECAUSE THE SOCIAL BENEFITS PAID BY EMPLOYERS HAVE EXPLODED THE AVERAGE GERMAN MANUFACTURING WORKER THE HIGHEST PAID IN EUROPE RECEIVED 2689 AN HOUR IN WAGES AND BENEFITS LAST YEAR OF WHICH 1247 CAME IN THE FORM OF SOCIAL BENEFITS SUCH AS HEALTH INSURANCE AND PENSION FUNDING ITALIAN WORKERS RECEIVE MORE BENEFITS THAN WAGES IN THEIR 2109 HOURLY COMPENSATION BY CONTRAST ONLY 444 OF A US WORKER'S AVERAGE HOURLY COMPENSATION OF 1589 AN HOUR COMES AS BENEFITS EUROPEANS ALSO TAKE LONGER VACATIONS AND WORK SHORTER WEEKS IN 1992 THE AVERAGE GERMAN WORKER CLOCKED 1519 HOURS AND TOOK 40 DAYS OF PAID VACATION THE AVERAGE FRENCH WORKER PUT IN 1646 HOURS MEANTIME THEIR US AND JAPANESE COMPETITORS WORKED AN AVERAGE 1857 AND 2007 HOURS LAST YEAR RESPECTIVELY EUROPEAN EMPLOYERS COMPLAIN THIS FACTOR GOES RIGHT INTO HIGHER OPERATING COSTS THAT EITHER SQUEEZE PROFITS OR PROPEL THEIR PRICES OUT OF THE MARKET UNIT LABOR COSTS HAVE BEEN RISING FASTER IN EUROPE THAN IN ANY OF THE CONTINENT'S ECONOMIC RIVALS SINCE THE EARLY 1970S IN 1992 ALONE AVERAGE EC UNIT LABOR COSTS GREW 41 RAPIDLY OUTPACING RISES OF 14 IN THE US AND 24 IN JAPAN ACCORDING TO THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT BUSINESS LEADERS SAY IT'S TIME TO BEGIN SACRIFICING EUROPE'S HOLY COWS WE HAVE ARRIVED AT A POINT WHERE WE HAVE TO TELL EMPLOYEES THAT THEY HAVE TO BEGIN INSURING THEMSELVES SAYS PETERRUEDIGER PUF CHIEF ECONOMIST OF DAIMLERBENZ AG SELFRESPONSIBILITY IS THE WATCHWORD CURT ENGELHORN SUPERVISORYBOARD CHAIRMAN OF BOEHRINGER MANNHEIM GMBH SAYS THE BIG GERMAN PHARMACEUTICALS CONCERN IS AN EXAMPLE OF A COMPANY STRUGGLING UNDER RISING COSTS AND BUREAUCRATIC RED TAPE HIS REMEDY FOR US IT IS SIMPLE RETURN TO A FREEMARKET ECONOMY ALREADY JEOPARDIZED BY OVERSEAS COMPETITORS GERMANY AND FRANCE NOW ARE THREATENED BY CHEAPER EXPORTS FROM COUNTRIES WHOSE CURRENCIES HAVE BEEN DEVALUED SINCE LAST SEPTEMBER BRITAIN ITALY SPAIN PORTUGAL AND IRELAND BEFORE THE REALIGNMENTS ALL OF EUROPE WAS UNCOMPETITIVE BUT TRADED 60 WITH THEMSELVES THAT WORKED BEFORE IT WENT BUST WITH COMPETITIVE DEVALUATIONS IN SEPTEMBEROCTOBER SAYS MR ROCHE OF MORGAN STANLEY THE CURRENCY REALIGNMENTS REDOUBLED PRESSURE ON COMPANIES TO BECOME LEAN AND MAKE OPERATIONS PROFIT ABLE IF EC GOVERNMENTS TAKE THE MAASTRICHT TREATY FOR EUROPEAN MONETARY UNION SERIOUSLY THEY HAVE NO CHOICE BUT TO CUT SOCIAL SPENDING OF THE 12 EC COUNTRIES ONLY LUXEMBOURG MEETS MAASTRICHT CONVERGENCE CRITERIA ON PUBLICSECTOR DEBT AND DEFICITS PUBLIC SPENDING AMOUNTED TO NEARLY 49 OF THE EC'S GROSS DOMESTIC PRODUCT LAST YEAR UP FROM 37 IN 1970 ACCORDING TO THE EC COMMISSION THAT COMPARES WITH 37 IN THE US AND 32 IN JAPAN LAST YEAR IN 1990 THE LATEST FIGURES AVAILABLE SOCIALSECURITY OUTLAYS ACCOUNTED FOR 25 OF GDP IN THE EC COMPARED WITH 15 IN THE US AND 11 IN JAPAN IN ITALY DEFICITS IN SOCIAL PROGRAMS ACCOUNTED FOR HALF OF ITS 1992 BUDGET DEFICIT AMOUNTING TO A WHOPPING 10 OF GDP OTHER COUNTRIES FACE GROWING DEFICITS IN COMING YEARS AS THEIR POPULATIONS AGE AND ESPECIALLY IF EUROPEAN ECONOMIES REMAIN SLUGGISH THE GENEROUS PUBLIC SECTOR HELPS EXPLAIN WHY THE CORPORATE TAX BURDEN IS 61 IN GERMANY AND 52 IN FRANCE BUT 45 IN THE US ACCORDING TO CALCULATIONS BY THE INSTITUTE OF GERMAN INDUSTRY IN BRITAIN WHICH BEGAN DISMANTLING ITS SOCIAL SYSTEMS IN THE 1980S PUBLIC SPENDING AS A PERCENTAGE OF GDP WAS 41 LAST YEAR AT THE BOTTOM OF THE EC LIST WHILE ITS CORPO RATE TAX RATE WAS ONLY 33 THESE COMPARISONS HAVE ALERTED POLICY MAKERS THAT THE STRUCTURAL BAGGAGE ALLOWED TO PILE UP OVER DECADES WILL FRUSTRATE CLASSIC EFFORTS TO STIMULATE GROWTH SUCH AS FREER PUBLIC SPENDING OR CHEAP CREDIT INSTEAD OF RESORTING TO FISCAL AND MONETARY PANACEAS THAT HAVE LONG BEEN OBSOLETE POLICY MAKERS SHOULD CONCENTRATE ON REMOVING ACTUAL IMPEDIMENTS TO GROWTH BUNDESBANK CHIEF ECONOMIST OTMAR ISSING SAID RECENTLY HE WAS TALKING ABOUT EUROPE'S ALBATROSSES ALSO CALLED STRUCTURAL RIGIDITIES THESE INCLUDE POLITICALLY INSPIRED SUBSIDIES TO NONPROFITABLE INDUSTRIES AND THEY INCLUDE REGULATORY HURDLES AND INFLEXIBLE LABOR MARKETS DEFINED AS A SYSTEM OF UNREALISTIC WAGE AND BENEFIT SCALES LACKING WORKER MOBILITY AND ELABORATE RULES THAT BAN OR DISCOURAGE PARTTIME OR WEEKEND WORK WE NOW HAVE TO PAY FOR OUR FAILURE TO TACKLE THE STRUCTURAL PROBLEMS IN GOOD' YEARS MR ISSING SAID AT THE ROOT OF THE PROBLEM IS THAT EUROPEANS HAVE BECOME RICHER BUT STILL DEMAND THE PROTECTION DESIGNED BEFORE WIDESPREAD PROSPERITY CONDITIONS HAVE CHANGED BUT STRUCTURES REMAIN THE SAME SAYS STEPHANIE WAHL A SENIOR FELLOW AT THE INSTITUTE FOR ECONOMIC AND SOCIAL RESEARCH IN BONN SHE ADDS THAT THE MORE COMFORTABLE AND PROSPEROUS PEOPLE BECOME THE MORE THEY SCREAM FOR MORE SOCIAL SECURITY BUT THE GOOD THING ABOUT A CRISIS SAYS MS WAHL IS THAT SYSTEMS GET REEXAMINED 9307020181 930702 BUSINESS BRIEF LONE STAR INDUSTRIES INC HOLDERS COMMITTEE OPPOSES NEW REORGANIZATION PLAN A COMMITTEE REPRESENTING PREFERRED AND COMMON STOCKHOLDERS IN LONE STAR INDUSTRIES INC SAID IT OPPOSES THE STAMFORD CONN CONSTRUCTION MATERIALS COMPANY'S LATEST REORGANIZATION PLAN THE COMMITTEE SAID IT WILL PURSUE OTHER OPTIONS INCLUDING DEVELOPING AN ALTERNATIVE PLAN AND INSISTED THE NEW PLAN IS BASED ON THE SAME FLAWED VALUATIONS OF LONE STAR'S ASSETS AS THE ORIGINAL THE AMENDED PLAN CALLS FOR UNSECURED CREDITORS TO RECEIVE ABOUT 85 OF THE REORGANIZED COMPANY'S EQUITY COMPARED WITH 76 PREVIOUSLY IT WOULD BOOST RECOVERY TO 82 TO 96 FROM 80 TO 93 PREVIOUSLY AND PREFERRED STOCKHOLDERS WOULD RECEIVE A SMALLER INTEREST IN THE REORGANIZED CONCERN 9307020180 930702 BAILEY CORP ACQUISITION SEABROOK NH BAILEY CORP SAID IT ACQUIRED CONTOUR TECHNOLOGIES A DIVISION OF BOLER CO FOR 76 MILLION CONTOUR MOLDS AND PAINTS PLASTIC COMPONENTS FOR THE AUTOMOTIVE AND HEAVYTRUCK INDUSTRIES AND HAS ANNUAL SALES OF ABOUT 14 MILLION 9307020179 930702 WHO'S NEWS GAYLORD ENTERTAINMENT CO GAYLORD ENTERTAINMENT CO NASHVILLE TENN DAVID HALL WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT OF CABLE NETWORKS FOR THIS BROADCASTING AND ENTERTAINMENT COMPANY MR HALL 43 YEARS OLD WAS MOST RECENTLY GENERAL MANAGER OF GAYLORD'S TNN THE NASHVILLE NETWORK 9307020178 930702 CHILE'S INDUSTRIAL PRODUCTION SANTIAGO CHILE CHILE'S INDUSTRIAL PRODUCTION GREW BY 14 IN MAY FROM A YEAR EARLIER A PRIVATE BUSINESS ORGANIZATION REPORTED HERNAN BRIONES PRESIDENT OF THE INDUSTRIAL DEVELOPMENT SOCIETY SAID INDUSTRIAL PRODUCTION DURING THE FIRST FIVE MONTHS OF THE YEAR GREW BY NEARLY 57 FROM THE YEAREARLIER PERIOD MR BRIONES SAID THE PERFORMANCE WAS LOWER THAN EXPECTED AND POINTED OUT THAT PRODUCTION IN MAY FELL BY 26 FROM APRIL HE CITED LOSSES IN NEWSPRINT TEXTILES AND TIMBER AS THE MAIN CAUSES FOR THE PRODUCTION DROP 9307020177 930702 HONG KONG TO PROPOSE LEVY CUT HONG KONG THE HONG KONG GOVERNMENT SAID IT WILL PROPOSE A REDUCTION IN IMPORT LEVIES TO 0035 OF PRODUCT VALUE FROM 005 OVER FIVE YEARS THE PROPOSED LEVY REDUCTION WOULD SAVE TRADERS AND MANUFACTURERS MORE THAN 1 BILLION HONG KONG DOLLARS 1292 MILLION THE GOVERNMENT PREDICTED IT SAID IMPORTERS WOULD SAVE ABOUT HK90 MILLION FOR THE FISCAL YEAR ENDING MARCH 31 1994 THE GOVERNMENT EXPECTS THE REDUCTION WILL BE IN PLACE BY OCT 1 9307020176 930702 CREDIT MARKETS BOND AND NOTE PRICES FINISH NARROWLY MIXED AS INVESTORS MOVE TO SIDELINES AHEAD OF JOBS DATA BY THOMAS D LAURICELLA AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK TREASURY NOTE AND BOND PRICES ENDED NARROWLY MIXED YESTERDAY WITH WEAK ECONOMIC DATA BOLSTERING SHORTTERM SECURITIES WHILE RISING COMMODITY PRICES UNDERMINED LONGTERM SECURITIES WHILE TREASURY PRICES DID BOUNCE AROUND YESTERDAY MOST PARTICIPANTS WERE CONTENT TO REMAIN OUT OF THE FRAY WAITING FOR TODAY'S CRITICAL EMPLOYMENT REPORT THE JUNE EMPLOYMENT REPORT IS ESPECIALLY CRITICAL FOR THE TREASURY MARKET AS MOST SECURITIES ARE AT THE TOP END OF RECENT PRICE RANGES THE 30YEAR BOND FOR EXAMPLE HAS BEEN HOLDING RIGHT NEAR ITS LOWEST YIELD SINCE THE GOVERNMENT BEGAN REGULARLY ISSUING THE BONDS IN LATE 1977 SOME IN THE MARKET AREN'T CONVINCED THAT TREASURYS ARE GOING TO BE ABLE TO MAINTAIN THEIR LOFTY LEVELS UNLESS THE JOBS DATA COME IN MUCH WEAKER THAN IS EXPECTED THERE IS SO MUCH GOOD NEWS BUILT INTO THE MARKET THAT I'M AFRAID EXPECTATIONS ARE GOING TO BE DISAPPOINTED SAID JOSEPH LIRO CHIEF ECONOMIST AT SG WARBURG & CO THAT IS ESPECIALLY THE CASE AMONG SHORTTERM MATURITIES MR LIRO ARGUED ADDING THE MARKET IS GOING TO NEED AN ALMOST CONTINUOUS SUPPLY OF POSITIVE INFORMATION TO KEEP THE SHORT END WHERE IT IS THE AVERAGE FORECAST AMONG ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS CALLS FOR NONFARM PAYROLLS TO RISE BY 130000 IN JUNE THAT WOULD FOLLOW A MAY INCREASE OF 209000 BUT TALK AMONG TRADERS HAS FOCUSED ON SMALLER GAINS AND MANY SAY AN INCREASE OF 100000 HAS ALREADY BEEN FACTORED INTO PRICES THE GOOD PERFORMANCE YESTERDAY PUT IN BY SHORTTERM MATURITIES CAME IN RESPONSE TO DATA SUGGESTING A STRUGGLING MANUFACTURING SECTOR THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT REPORTED YESTERDAY THAT ITS INDEX SLID TO 483 IN JUNE FROM 511 IN MAY A BELOW 50 READING SUGGESTS THAT INDUSTRIAL ACTIVITY IS CONTRACTING WHILE A READING ABOVE 50 SUGGESTS EXPANSION THE NAPM REPORT WAS BUT ONE OF A SERIES OF REPORTS SHOWING THAT THE NATION'S EXPANSION APPEARS TO BE SLOWING ONE HAS TO TEMPER ONE'S OPTIMISM SAID DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES THAT DOESN'T MEAN YOU TURN PESSIMISTIC YOU JUST CAN'T BE AS OPTIMISTIC THE SOFTER ECONOMIC DATA HAVE ALLOWED TREASURY PRICES TO RISE ACROSS THE YIELD CURVE OVER THE PAST FEW WEEKS MARKING A REVERSAL OF THE NEGATIVE SENTIMENT THAT PERVADED THE MARKET DURING THE SPRING PART OF THE APPRECIATION OF PRICES HAS BEEN OUT OF RELIEF SAID FRED LEVIN AN ECONOMIST AT EASTBRIDGE CAPITAL INC PEOPLE SEVERAL WEEKS AGO THOUGHT THE FEDERAL RESERVE WAS GOING TO HAVE TO TIGHTEN BUT WE'VE HAD A SERIES OF WEAK NUMBERS NOW AND THE MARKET FEELS LIKE THE FED'S FINGERS AREN'T ON THE TRIGGER ANY MORE WHILE SHORTER MATURITIES FOUND REASON TO IMPROVE HOLDERS OF LONGER SECURITIES WERE UNNERVED BY A RENEWED SURGE IN COMMODITY AND PRECIOUS METALS PRICES LED BY A RISE IN GRAINS AND OTHER AGRICULTURAL COMMODITIES THE COMMODITY RESEARCH BUREAU INDEX SURGED 261 POINTS TO CLOSE TO 20973 THURSDAY MEANWHILE GOLD PRICES SOARED CLIMBING 9 PER OUNCE TO END AT 38820 BUT ANALYSTS WERE INCLINED TO DOWNPLAY THE SPURT IN COMMODITIES PRICES IN GENERAL COMMODITY PRICES ARE STILL NOT A REAL THREAT SAID MR LIRO OF SG WARBURG LATE YESTERDAY THE FED REPORTED ITS WIDELY WATCHED M2 AGGREGATE DROPPED 1 BILLION IN THE WEEK ENDED JUNE 21 THAT PUTS THE M2 GROWTH RATE AT 1 FROM THE FOURTHQUARTER BASE OF LAST YEAR FAR BELOW THE FED'S TARGET OF 2 TO 6 M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEYMARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 THE PUBLIC SECURITIES ASSOCIATION A TRADE ASSOCIATION HAS RECOMMENDED THAT THE BOND MARKET CLOSE AT 2 PM TODAY IN ADVANCE OF THE JULY FOURTH HOLIDAY THE PSA HAS ALSO RECOMMENDED THAT THE BOND MARKET CLOSE ON MONDAY MOST OF THE MARKET IS EXPECTED TO FOLLOW THESE RECOMMENDATIONS AFTER PLUNGING WEDNESDAY IN REACTION TO A RULING THAT COULD DELAY APPROVAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT MEXICAN GOVERNMENT BONDS RECOVERED YESTERDAY ENVIRONMENTAL AND PUBLIC ADVOCACY GROUPS SUCCEEDED IN SECURING A US DISTRICT COURT RULING THAT THE TRADE PACT WITHOUT AN ENVIRONMENTAL IMPACT STUDY WOULD VIOLATE THE US NATIONAL ENVIRONMENTAL POLICY ACT THE PRICE OF SOCALLED MEXICAN BRADY PAR BONDS SOLD IN 1990 AND MATURING IN 2019 ROSE ABOUT 1/8 POINT OR ABOUT 125 FOR A BOND WITH A 1000 FACE VALUE TO 72 1/8 YESTERDAY AFTER PLUNGING 15 POINTS ON WEDNESDAY THE YIELD FELL TO 904 FROM 906 BRADY BONDS ARE BONDS ISSUED UNDER GUIDELINES FORMULATED BY FORMER TREASURY SECRETARY NICHOLAS BRADY TO HELP DEVELOPING NATIONS RESTRUCTURE THEIR DEBT AND REOPEN THEIR CAPITAL MARKETS TO NEW INVESTMENT THE PRINCIPAL OF THE MEXICAN PAR BONDS IS COLLATERALIZED BY US TREASURY 30YEAR ZEROCOUPON BONDS PURCHASED BY THE MEXICAN GOVERNMENT IF THE DEAL IS COMPLETED IT WILL BE ONE OF THE LARGEST BOND ISSUES EVER TO COME FROM A LATIN AMERICAN CORPORATION ACCORDING TO A SPOKESWOMAN AT THE UNDERWRITER SALOMON BROTHERS INC THE ISSUE COULD BE PRICED AS EARLY AS NEXT WEEK ACCORDING TO SALOMON THE OFFERING HAS BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE NAME OF A PDV UNIT IN THE US CALLED PDV AMERICA INC WHICH IS AN OPERATING AFFILIATE OF CITGO PETROLEUM CORP EARLIER THIS MONTH SALOMON SAID THAT THE OFFERING WOULD BE FOR A TOTAL OF 1 BILLION IN MATURITIES OF FIVE SEVEN AND 10 YEARS THE OFFERING WILL BE GUARANTEED BY PDV AND PROPERNYN BV A DUTCH HOLDING COMPANY FOR PDV'S INVESTMENT IN THE US AND EUROPE MUNICIPAL BONDS WERE HELPED BY SCATTERED BUYING YESTERDAY AND CLOSED UNCHANGED TO 1/4 POINT HIGHER YESTERDAY'S GAINERS INCLUDED PUERTO RICO'S 525 GENERAL OBLIGATION REFUNDING BONDS MATURING IN 2018 WHICH CLOSED 1/8 POINT HIGHER AT 94 1/4 TO YIELD 566 THE MARKET'S TONE HAS BEEN FIRM FOR WEEKS PARTLY DUE TO BUYING BEFORE A MASSIVE WAVE OF BOND CALLS THAT TOOK PLACE YESTERDAY ESTIMATED AT MORE THAN 10 BILLION BUT SOME MARKET PARTICIPANTS SAY THERE PROBABLY WON'T BE A STRONG REINVESTMENTDRIVEN RISE IN PRICES IN THE WEEKS AHEAD SIMILAR TO THE ONE SEEN IN THE WEEKS FOLLOWING MASSIVE BOND CALLS IN JULY OF LAST YEAR I THINK A LOT OF REINVESTMENT HAS BEEN DONE THE BULK OF IT IS OVER SAID A NEW YORK PORTFOLIO MANAGER NEVERTHELESS THE MOOD ABOUT TAXEXEMPT SECURITIES IS STILL VERY BULLISH PARTICULARLY GIVEN GROWING CONCERNS ABOUT THE HIGHER FEDERAL INCOME TAXES THAT ARE EXPECTED TO BE APPROVED SOON HE SAID CORPORATE DEBT ISSUANCE SLOWED SHARPLY AHEAD OF TODAY'S EMPLOYMENT REPORT AND THE LONG HOLIDAY WEEKEND EVEN WITH 592 MILLION OF PAPER FROM GOVERNMENTSPONSORED AGENCIES ADDED LESS THAN 1 BILLION OF NEW BONDS WERE PRICED UNITED TELEPHONE OF FLORIDA A UNIT OF SPRINT CORP PRICED A 135 MILLION TWOPART NONCALLABLE ISSUE OF FIRST MORTGAGE BONDS RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WAS WON IN COMPETITIVE BIDDING BY GROUPS OF DEALERS LED BY LEHMAN BROTHERS AND MERRILL LYNCH & CO THE PRIMARY HIGHYIELD SECTOR WAS A LITTLE BUSIER INTERNATIONAL SHIPHOLDING CORP PRICED 100 MILLION OF 10YEAR SENIOR NOTES AT PAR TO YIELD 9 THE ISSUE RATED SINGLEB1 BY MOODY'S AND DOUBLEBMINUS BY S&P WAS LEADMANAGED BY ALEX BROWN & SONS MEANWHILE ACTIVITY REMAINED MUTED IN THE INVESTMENTGRADE SECONDARY MARKET WITH A SLIGHT UPWARD PRICE BIAS AT THE LONG END SEASONED ISSUES IN THE JUNK SECTOR WERE MOSTLY UNCHANGED THE FIRST PART OF THE UNITED TELEPHONE ISSUE 60 MILLION OF 20YEAR BONDS WAS REOFFERED BY LEHMAN BROTHERS AT 98665 TO YIELD 7 OR A SPREAD OF 0325 PERCENTAGE POINT ABOVE THE 20YEAR TREASURY THE SECOND PART 75 MILLION OF 30YEAR BONDS WAS REOFFERED BY MERRILL AT 98949 TO YIELD 722 OR A SPREAD OF 055 PERCENTAGE POINT ABOVE THE 30YEAR TREASURY PRICES OF MORTGAGE SECURITIES ENDED MOSTLY FLAT AS INVESTORS DISPLAYED THE USUAL CAUTION AHEAD OF AN EMPLOYMENT REPORT EARLY IN THE SESSION FEDERAL HOME LOAN MORTGAGE CORP RELEASED PREPAYMENTS SPEEDS FOR THE MIDMAY TO MIDJUNE PERIOD THE REPORT INDICATING SPEEDS WERE GENERALLY FLAT TO ABOUT 5 FASTER FAILED TO IMPRESS THE MARKET IN SECONDARY TRADING CURRENT COUPON SECURITIES FOR JULY DELIVERY FROM ALL THREE AGENCIES WERE LITTLE CHANGED THIS CLEARLY IS THE PEAK IN FREDDIE MAC PREPAYMENTS AT LEAST IN THE NEAR TERM DALE WESTHOFF MORTGAGE ANALYST AT BEAR STEARNS & CO WROTE IN A COMMENTARY FOLLOWING THE RELEASE OF THE FREDDIE MAC NUMBERS UNDER THE CURRENT MORTGAGE RATE LEVEL THE SURGE IS NOT LIKELY TO MATCH THE FIRSTQUARTER SPIKE SINCE RATES HAVE BEEN VERY NEAR HISTORICAL LOWS FOR THREE MONTHS ALREADY MR WESTHOFF REASONS PERHAPS CORROBORATING MR WESTHOFF'S POINT THE MORTGAGE BANKERS ASSOCIATION OF AMERICA REPORTED THAT LOAN APPLICATIONS FELL 72 IN THE LATEST WEEK BASED ON ONE WEEK'S DATA RATHER THAN THE USUAL THREEWEEK MOVING AVERAGE THE MBA USES FOR ITS NUMBERS 9307020175 930702 CANON CAMERAS MADE OUTSIDE JAPAN TO HAVE HIGHER LOCAL CONTENT SPECIAL TO THE WALL STREET JOURNAL TOKYO CANON INC WILL INCREASE ITS LOCAL PROCUREMENT OF PARTS USED IN CAMERAS MADE OUTSIDE OF JAPAN PARTLY IN RESPONSE TO THE STRENGTHENING YEN AT A MALAYSIAN COMPACTCAMERA FACTORY THE COMPANY IS AIMING FOR LOCAL CONTENT OF 80 BY JUNE 1994 UP FROM THE CURRENT 50 BY WAY OF PURCHASES FROM SUPPLIERS THERE AS WELL AS BEEFING UP ITS OWN PRODUCTION OF PLASTIC PARTS A SPOKESMAN SAID CANON HAS INVESTED IN NEW PARTSMAKING EQUIPMENT HE SAID AND HAS ENTERED INTO AGREEMENTS WITH THREE JAPANESE COMPANIES OPERATING IN MALAYSIA AS WELL AS ONE LOCAL PARTS MAKER CANON'S MALAYSIA FACTORY HAS MONTHLY PRODUCTION CAPACITY OF 90000 COMPACT CAMERAS INCLUDING ZOOMTYPE UNITS THE SPOKESMAN SAID CANON ALSO WILL CONTINUE INCREASING THE PROPORTION OF PARTS PROCURED LOCALLY AT A CAMERA PRODUCTION FACTORY IN CHINA THE SPOKESMAN SAID HE SAID THAT CANON HAS ALL ALONG MADE EFFORTS TO USE HIGH LEVELS OF LOCALLY MADE PARTS AT ITS OVERSEAS FACTORIES WITH 90 OF THE PARTS IN SINGLELENS REFLEX CAMERAS MADE IN TAIWAN PROCURED ON THE SPOT JAPANESE PRECISION MACHINERY COMPANIES HAVE BEEN HASTENING THEIR SHIFTS TO OVERSEAS PRODUCTION AND PROCUREMENT AS THE YEN'S STRENGTH RENDERS THAT ROUTE CHEAPER AND REDUCES FOREIGN EXCHANGE RISKS 9307020174 930702 WHO'S NEWS MONSANTO CO MONSANTO CO ST LOUIS GWENDOLYN S KING SENIOR VICE PRESIDENT CORPORATE AND PUBLIC AFFAIRS FOR PHILADELPHIA ELECTRIC CO WAS NAMED A DIRECTOR OF THIS MAKER OF AGRICULTURAL AND CHEMICAL PRODUCTS PHARMACEUTICALS AND FOOD INGREDIENTS INCREASING BOARD MEMBERSHIP TO 16 9307020173 930702 WHO'S NEWS GE NAMES MURPHY CHIEF EXECUTIVE OF AIRCRAFT ENGINES BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL FAIRFIELD CONN GENERAL ELECTRIC CO SELECTED EUGENE F MURPHY WHO PREVIOUSLY HEADED TWO TECHNOLOGYDRIVEN GE BUSINESSES TO LEAD THE COMPANY'S 74 BILLION AIRCRAFTENGINES UNIT OUT OF ITS CURRENT PROBLEMS LIKE ITS COMPETITORS GE'S AIRCRAFTENGINE BUSINESS HAS BEEN HURT BY SHRINKING DEFENSE ORDERS AND AN ANEMIC AIRLINE INDUSTRY THE UNIT RECENTLY ANNOUNCED PLANS FOR A RESTRUCTURINGINCLUDING CLOSING A PLANT AND ELIMINATING 1500 JOBS THE TASK OF RESTRUCTURING THE AIRCRAFTENGINES OPERATIONS WILL BE DEMANDING MR MURPHY 57 YEARS OLD SAID THE INDUSTRY IS GOING THROUGH A SEA CHANGE BUT PEOPLE ARE HOPING THAT THE MARKET WILL START TO PICK UP IN THE SECOND HALF OF THE 1990S MR MURPHY WAS NAMED TO THE POSITION OF PRESIDENT AND CHIEF EXECUTIVE OF GE AIRCRAFT ENGINES SUCCEEDING BRIAN H ROWE A VETERAN OF THE UNIT MR ROWE 62 WAS NAMED TO THE NEW POST OF CHAIRMAN UNTIL HIS RETIREMENT AT THE END OF 1994 AS CHAIRMAN OF THE UNIT MR ROWE WILL HELP LAUNCH THE GE90 THE COMPANY'S NEW SUPERHIGHTHRUST ENGINE MR MURPHY SAID THAT HIS OWN EMPHASIS WILL CONCENTRATE ON OUR BUSINESS OPERATIONS GOING FORWARD THE GE90 WILL BEGIN FLIGHT TESTING IN 1994 AND BRITISH AIRWAYS WILL START USING THE ENGINES IN LATE 1995 ON THE BOEING 777 SO FAR SEVERAL AIRLINES HAVE ORDERED 60 FIRM AND OPTIONAL GE90POWERED 777S AT A VALUE OF OVER 1 BILLION GE SAID IN A STATEMENT GE CHAIRMAN AND CHIEF EXECUTIVE JOHN F WELCH JR LAUDED MR ROWE'S ROLE IN INTRODUCING TWO MAINSTAY GE ENGINE LINES WHICH PLAYED A KEY ROLE IN BUILDING GE AIRCRAFT ENGINES INTO A 7 BILLION BUSINESS IN RECENT MONTHS MR ROWE SPEARHEADED THE PLAN TO RESTRUCTURE THE UNIT BY REQUIRING JOB CUTS AND INTRODUCING PRODUCTIVITYIMPROVEMENT PROGRAMS EARLIER THE UNIT HAD SAID IT WOULD CUT ITS WORLDWIDE WORK FORCE TO ABOUT 27500 BY EARLY 1994 THE UNIT EMPLOYED 40000 IN THE LATE 1980S BUT EXECUTIVES AT GE AND SOME OF ITS COMPETITORS HAVE CONCEDED THAT SUCH MOVES AREN'T SUFFICIENT TO PULL THE INDUSTRY OUT OF ITS DIVE THEY'VE HINTED STRONGLY AT POSSIBLE PARTNERSHIPS WITH EACH OTHER MR MURPHY SAID THAT ALTHOUGH HE DOESN'T PLAN TO ALTER GE'S CURRENT RESTRUCTURING PLANS HE SEES THE POSSIBILITY OF ALLIANCES AS AN AREA OF REAL POTENTIAL MR MURPHY WHO DESCRIBES HIS MANAGEMENT STYLE AS OPEN DIRECT AND INFORMAL WAS MOST RECENTLY PRESIDENT AND CHIEF EXECUTIVE OF GE AEROSPACE A 53 BILLION BUSINESS WITH ABOUT 30000 EMPLOYEES DESPITE THE PRESSURE OF DEFENSE AND OTHER CUTBACKS THE UNIT'S OPERATING PROFIT HOVERED AT A CONSISTENT 655 MILLION LEVEL BETWEEN 1991 AND 1992 MR MURPHY LEFT HIS POSITION AT GE AEROSPACE AFTER ITS MERGER WITH MARTIN MARIETTA CORP ON APRIL 2 FROM 1986 TO 1992 HE HEADED GE COMMUNICATIONS & SERVICES 9307020172 930702 THE AMERICAS THE ARGENTINE REELECTION PUZZLE BY WENCESLAO BUNGE BUENOS AIRES ARGENTINE PRESIDENT CARLOS MENEM'S OFFICIAL VISIT TO THE US THIS WEEK WAS NO VACATION FROM THE LOCAL POLITICAL STORMS RAGING AT HOME IN FACT THE DEBATE FOLLOWED HIM TO THIS COUNTRY IT IS ONE THAT OTHER POLITICAL LEADERS IN LATIN AMERICA MIGHT WELL ENVY WHETHER TO AMEND THE CONSTITUTION TO PERMIT THE POPULAR MR MENEM TO SUCCEED HIMSELF THE PRESIDENT IS NOW MORE THAN HALF WAY THROUGH HIS SIXYEAR TERM THE ARGENTINE CONSTITUTION LIKE THE CONSTITUTIONS OF MEXICO AND BRAZIL BAN SUCCESSIVE PRESIDENTIAL TERMS BUT THE DAZZLING ACHIEVEMENTS OF THE MENEM ADMINISTRATION'S ECONOMIC REFORM PROGRAM THE RAPID INCREASE IN BUSINESS ACTIVITY EMPLOYMENT AND FOREIGN INVESTMENT AND THE ALMOST MIRACULOUSLY QUICK ELIMINATION OF HYPERINFLATION IN THE COUNTRY HAVE GENERATED DEMANDS NOT SURPRISINGLY LED BY HIS OWN PERONIST PARTY THAT THE WAY SHOULD BE OPEN FOR MORE OF THE SAME PRESIDENTIAL MEDICINE IN THE YEARS TO COME THE DEBATE HAS BECOME ALMOST EXCESSIVELY SHRILL AMONG THE POLITICAL ELITE IT HAS VIRTUALLY DROWNED OUT OTHER LEGITIMATE ISSUES HISTORICALLY EACH OF THE TWO MAJOR PARTIES HAS BEEN ON BOTH SIDES OF THE PRESIDENTIAL SUCCESSION QUESTION AT ONE TIME OR ANOTHER THUS THE MAJOR OPPOSITION PARTY IN THE CONGRESS TODAY THE RADICALS LED BY FORMER PRESIDENT RAUL ALFONSIN AND SENATOR FERNANDO DE LA RUA ARE ADAMANTLY AGAINST A REELECTION CLAUSE NOW THAT THE BENEFICIARY OF THE CHANGE WOULD BE THE PERONIST MENEM EVEN THOUGH THEY FERVENTLY ADVOCATED SUCH A CLAUSE DURING THE PERIOD OF MR ALFONSIN'S OWN POPULARITY A HALF DOZEN YEARS AGO BY THE SAME TOKEN THE PERONISTS OPPOSED THE REELECTION CLAUSE DURING MR ALFONSIN'S HEYDAY AND NOW TEND BY AND LARGE TO SUPPORT THE REFORM THE PROPONENTS OF CHANGE ARE PERSUADED THAT A SINGLE SIXYEAR TERM WITHOUT THE POSSIBILITY OF REELECTION IS TOO SHORT FOR THE FULL IMPLEMENTATION OF A SERIOUS PROGRAM OF ECONOMIC POLITICAL AND SOCIAL REFORM SUCH AS THAT INITIATED BY THE MENEM ADMINISTRATION BUT A SINGLE TERM OF LONGER THAN SIX YEARS APPEALS TO NO ONE AND MANY ARGENTINES ARE RELUCTANT TO EMBRACE THE NOTION OF SHORTENING THE FIRST TERM OF A REELECTABLE PRESIDENT TO FOUR YEARS THE NATIONAL EXPERIENCE OF THE US HAS DEMONSTRATED TO ARGENTINES THAT FIRSTTERM FOURYEAR PRESIDENTS ARE DISTRACTED BY THE NEXT CAMPAIGN ALMOST BEFORE THEY BEGIN THEIR FIRST TERM MANY IN ARGENTINA ARE ANXIOUS TO AVOID A SYSTEM THEY THINK IS FLAWED ON THE OTHER HAND THE NOTION THAT A PRESIDENT ELECTED FOR ONE SIXYEAR TERM MIGHT BE REELECTED FOR AN ADDITIONAL SIXYEARS STRIKES MANY AS EXCESSIVE SO WHILE POLLS SHOW THAT MOST ARGENTINES FAVOR THE POSSIBILITY FOR REELECTION THERE IS LITTLE ENTHUSIASM FOR EITHER THE 12YEAR OR THE 8YEAR SOLUTION THERE IS A MIDDLE GROUND HOWEVER IF THE SYSTEM SHOULD INCORPORATE AN OPPORTUNITY FOR REELECTION AS AN EXPRESSION OF THE DEMOCRATIC CHOICE OF THE PEOPLE THEN AN IDEAL SOLUTION WOULD BE A SECOND TERM LIMITED TO A SHORTER PERIOD OF FOUR YEARS A SECOND FOURYEAR TERM IN OFFICE WOULD PRESENT ELECTORS WITH AN OPPORTUNITY TO SEE THEIR LEADER TO COMPLETE A TASK THAT HE OR SHE HAS ALREADY BEGUN THUS THE FIRST SIX YEARS WOULD BE DEDICATED TO THE INITIATION OF A BROAD POLITICAL VISION AND THE ENSUING FOURYEAR PERIOD IF HE OR SHE IS REELECTED WOULD BE FOR THE COMPLETION OF A PROGRAM WHICH HAD RECEIVED POPULAR SUPPORT AND ENDORSEMENT IN THE INTERIM ELECTION WITH THIS SIXPLUSFOUR SCHEME AN INCUMBENT WOULD COMPETE WITH CANDIDATES THAT ASPIRE TO A LONGER TERM THE CHALLENGERS WOULD SEEK A SIXYEAR TERM TO ALLOW THEM TO INAUGURATE THE PROGRAM THEY PUT TO THE ELECTORS THE INCUMBENT WOULD INSTEAD ASK THE PEOPLE TO ELECT HIM FOR A MERE FOUR YEARS TO COMPLETE WHAT IS ALREADY UNDERWAY THE FORMULA HAS DISTINCT ADVANTAGES IT POSSESSES AN UNDENIABLE LOGIC IT WOULD ENDOW THE SENIOR STATESMAN WITH AN AURA OF MODESTY DERIVED FROM THE FACT THAT HIS ELECTORAL AMBITIONS ARE LESS EXTENSIVE THAN THOSE OF HIS COMPETITORS AND IT WOULD HOLD IN CHECK THE TEMPTATION OF SELFPERPETUATION THE SHORTER SECOND TERM WOULD BRING HOME THE FACT THAT THE REELECTED PRESIDENT IS AN OUTGOING STATESMEN AT THE PEAK OF HIS ACHIEVEMENTS BUT DRAWING TOWARD THE END OF HIS PUBLIC SERVICE THE MOST TELLING OBJECTION TO THE SIXPLUSFOUR SCHEME IS THAT IT HAS NEVER BEEN DONE BEFORE BUT SUCCESSFUL NATIONS HAVE ALWAYS CREATED THEIR OWN INSTITUTIONS ON THE BASIS OF THE PERCEIVED NECESSITIES OF THE TIME THE SIXPLUSFOUR SYSTEM WOULD OPEN THE WAY FOR THE PEOPLE OF ARGENTINA TO EXERCISE A FREE DEMOCRATIC CHOICE TO RETURN PRESIDENT MENEM AND HIS POLICIES TO A FURTHER BUT FORESHORTENED TERM OF OFFICE AND PROVIDE HIM WITH THE OPPORTUNITY WHICH THE NATION MAY PERCEIVE IT NEEDS FOR HIM TO COMPLETE THE WORK SO SUCCESSFULLY BEGUN IN THE FIRST SIXYEAR TERM MR BUNGE IS AN ARGENTINE LAWYER AND PRESIDENT OF THE USARGENTINE FORUM 9307020171 930702 BUSINESS BRIEF DOW CORNING CORP IMPLANT VENTURE CLOSES SALE OF ITS WRIGHT UNIT'S ASSETS DOW CORNING CORP MIDLAND MICH A 5050 JOINT VENTURE BETWEEN DOW CHEMICAL CO MIDLAND MICH AND CORNING INC CORNING NY COMPLETED ITS ANNOUNCED SALE OF THE ASSETS OF ITS DOW CORNING WRIGHT UNIT TO AN INVESTOR GROUP FOR 66 MILLION UNDER TERMS DOW CORNING RETAINS WRIGHT'S SILICONE MEDICALDEVICE BUSINESS WHICH INCLUDES HARDSILICONE FINGERJOINT AND TOEJOINT IMPLANTS ALSO WRIGHT WILL CONTINUE TO SUPPLY SMALLJOINT ORTHOPEDIC IMPLANTS TO DOW CORNING WRIGHT ALSO MAKES LARGEJOINT ORTHOPEDIC IMPLANTS SUCH AS METAL HIP REPLACEMENTS UNTIL EARLY 1992 WRIGHT MARKETED SILICONE BREAST IMPLANTS BY OTHER DOW CORNING OPERATIONS AND MADE A LIMITED NUMBER OF THE DEVICES ITSELF BY SELLING THE UNIT'S ASSETS INSTEAD OF THE UNIT ITSELF DOW CORNING RETAINS LIABILITY FOR LAWSUITS THAT BREASTIMPLANT PATIENTS FILED AGAINST WRIGHT WRIGHT'S BUYER IS A GROUP LED BY INVESTMENT PARTNERSHIP KIDD KAMM EQUITY PARTNERS OF GREENWICH CONN AND BY HERBERT W KORTHOFF A FORMER EXECUTIVE VICE PRESIDENT OF US SURGICAL CORP DOW CORNING WRIGHT WHICH WAS ACQUIRED BY WRIGHT MEDICAL TECHNOLOGY INC LAST WEEK WILL CONTINUE TO MARKET SMALLJOINT ORTHOPEDIC IMPLANTS SUPPLIED BY ITS FORMER PARENT DOW CORNING CORP A 5050 VENTURE BETWEEN DOW CHEMICAL CO AND CORNING INC THE MARKETING WILL BE DONE BY WRIGHT WHICH HAS ENTERED INTO A SUPPLY AGREEMENT WITH DOW CORNING AN ARTICLE FRIDAY INCORRECTLY STATED THAT WRIGHT WILL SUPPLY THE DEVICES TO DOW CORNING 9307020170 930702 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 OF 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 9307020169 930702 TECHNOLOGY IBM'S OS2/21 DEBUT IS MODEST SUCCESS BUT LAUNCH OF RIVAL WINDOWS NT LOOMS BY LAURIE HAYS AND MICHAEL WOFSEY STAFF REPORTERS OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP'S NEW VERSION OF ITS PERSONAL COMPUTER OPERATING SYSTEM IS OFF TO A MODERATELY SUCCESSFUL START BUT ITS PROSPECTS IN THIS BILLIONDOLLAR MARKET REMAIN CLOUDED BY THE HORDES OF POTENTIAL CUSTOMERS STILL WAITING FOR MICROSOFT CORP TO LAUNCH ITS COMPETING AND MUCHANTICIPATED WINDOWS NT TWO WEEKS AFTER ITS LAUNCH IBM'S OS2/21 HAS RECEIVED EARLY POSITIVE REVIEWS IBM SAYS IT HAS SOLD 200000 COPIES AND UNDERESTIMATED DEMAND LEAVING SOME DISTRIBUTORS SOLD OUT AS CUSTOMERS OF THE OLDER VERSION HAVE ORDERED UPGRADES AT A FASTER CLIP THAN THEY BOUGHT THE ORIGINAL BY CONTRAST MICROSOFT SOLD THREE MILLION COPIES OF WINDOWS 31 ITS CURRENT VERSION IN THE SIX WEEKS AFTER ITS INTRODUCTION APRIL 7 1992 PUTTING ITS SALES AT ABOUT FIVE TIMES THE RATE OF OS2/21 OVERALL 25 MILLION COPIES OF WINDOWS HAVE BEEN SOLD SINCE IT WAS FIRST RELEASED IN MAY 1990 A NUMBER OF MAJOR COMPUTER MAKERS INCLUDING COMPAQ COMPUTER CORP AND UNISYS CORP HAVE SIGNED AGREEMENTS WITH IBM TO PRELOAD OS2/21 AT THE REQUEST OF CLIENTS WHO ARE ALREADY ASKING FOR IT IT'S RUNNING EXTRAORDINARILY WELL THE FEEDBACK HAS BEEN EXCELLENT SAYS WALTER CASEY IBM'S DIRECTOR OF MARKETING FOR PERSONAL SOFTWARE PRODUCTS BUT THERE'S ENOUGH HESITATION IN THE MARKET THAT EVEN MR CASEY CONCEDES THAT HE AND OTHERS CAN'T TELL YET HOW OS2/21 IS GOING TO DO IN THE LONG RUN OPERATING SYSTEMS LIKE OS2 AND WINDOWS NT CONTROL THE BASIC OPERATIONS OF COMPUTERS AND COMPUTER NETWORKS AND BIG CORPORATE BUYERS TEND TO BE VERY CAUTIOUS WHEN CHOOSING A NEW SYSTEM WHICH REPRESENTS A MAJOR INVESTMENT EVENTUALLY USERS IN A GIVEN NICHE TEND TO RALLY AROUND A SINGLE OPERATING SYSTEM PC USERS NOW FAVOR WINDOWS AND ENGINEERS FAVOR UNIX FOR EXAMPLE AND THUS PROVIDE A LUCRATIVE MARKET TO THE MAKER OF THE OPERATING SYSTEM THAT WINS OUT IN ANY CASE IBM IS TRYING HARD TO GRAB A CHUNK OF THE MARKET AWAY FROM MICROSOFT BEFORE NT APPEARS ONE OF IBM'S MAIN SELLING POINTS IS THE FACT THAT NT ISN'T OUT YET AND HAS ALREADY MISSED SEVERAL SHIPPING DEADLINES WINDOWS NT IS NOW SCHEDULED FOR RELEASE IN LATE JULY BUT THERE HAS BEEN SPECULATION THAT IT MAY MISS THAT DATE TOO IBM DELIVERED OS2/21 JUNE 14 AS PROMISED SINCE THEN IT HAS BEEN MAKING THE MOST OF NT'S DELAYS LEE REISWIG PRESIDENT OF IBM'S PERSONAL SOFTWARE PRODUCTS DIVISION JOKED WITH REPORTERS I WISH THEY MICROSOFT WOULD SHIP IT SO WE WOULD KNOW WHAT WE'RE UP AGAINST INSTEAD WE'RE COMPETING AGAINST A PHANTOM IF IBM HAD A GOOD PRODUCT THEY WOULDN'T HAVE TO ENGAGE IN THIS KIND OF STUFF RESPONDS MICROSOFT VICE PRESIDENT JONATHAN LAZARUS GRANTED THEY HAVE A NEW VERSION BUT THERE ISN'T THIS GROUNDSWELL OF DEVELOPMENT THERE ISN'T A GROUNDSWELL OF CUSTOMERS THERE ISN'T THIS LARGE NUMBER OF PEOPLE BUYING IT NT'S NEWNESS AND LACK OF AVAILABILITY PRESENT AN OPPORTUNITY FOR IBM STEVEN MILUNOVICH A COMPUTER ANALYST FOR MORGAN STANLEY RECENTLY COMPLETED A CORPORATE BUYER'S SURVEY REVIEWING NT THAT FOUND 80 OF THOSE QUESTIONED DON'T EXPECT TO COMMIT TO NT IN THE NEXT YEAR LARGELY BECAUSE IT'S LIKELY TO HAVE BUGS BRISCOE STEPHENS A PHYSICIST AND PROJECT MANAGER FOR THE NASA MARSHALL SPACE FLIGHT CENTER IN HUNTSVILLE ALA SAYS HE LIKES HIS TEST VERSION OF NT BECAUSE NEARLY ALL OF HIS MACHINES FROM HIS LARGEST WORKSTATIONS DOWN TO HIS DESKTOP COMPUTERS CAN NOW RUN THE SAME OPERATING SYSTEM UNTIL NOW HE HAS BEEN FORCED TO USE A DIGITAL PATCHWORK OF OS2 UNIX AND OTHER PROPRIETARY SOFTWARE WE'LL ENCOURAGE THE MIGRATION OF OUR SCIENTISTS FROM OS2 TO WINDOWS NT HE SAYS NT IS A BIG IMPROVEMENT BECAUSE A SCIENTIST ONLY HAS TO LEARN ONE OPERATING SYSTEM THAT IS AN IMPROVEMENT IN THE QUALITY OF A MAN'S LIFE 9307020168 930702 WHO'S NEWS PULTE CORP PULTE CORP BLOOMFIELD HILLS MICH WILLIAM J CROMBIE 46 YEARS OLD SENIOR VICE PRESIDENT AND FORMERLY CHIEF FINANCIAL OFFICER OF THIS HOMEBUILDING COMPANY WAS NAMED TO THE NEWLY CREATED POSITION OF CHIEF FINANCIAL OFFICER OF ITS PULTE HOME CORP HOMEBUILDING UNIT MR CROMBIE IS SUCCEEDED BY MICHAEL D HOLLERBACH 40 FORMERLY A SENIOR VICE PRESIDENT IN CHARGE OF FINANCIAL SERVICES OPERATIONS 9307020167 930702 WHO'S NEWS GRANT TENSOR GEOPHYSICAL CORP GRANT TENSOR GEOPHYSICAL CORP HOUSTON HARVEY D ATTRA ORVILLE GAITHER AND DG RUSSELL WERE NAMED DIRECTORS OF THIS GEOPHYSICAL SERVICES COMPANY BRINGING THE BOARD'S SIZE TO SEVEN MEMBERS MR ATTRA 63 YEARS OLD IS CURRENTLY SPECIAL ADVISER TO THE US DEPARTMENT OF ENERGY MR GAITHER 66 IS PRESIDENT CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF GAITHER PETROLEUM CORP MR RUSSELL 62 IS CHAIRMAN AND CHIEF EXECUTIVE OF SONAT EXPLORATION CO A UNIT OF SONAT INC 9307020166 930702 WHO'S NEWS TRW INC TRW INC CLEVELAND PETER STAUDHAMMER 59 YEARS OLD WAS NAMED TO THE NEW POST OF VICE PRESIDENT FOR SCIENCE AND TECHNOLOGY AT THIS PROVIDER OF HIGHTECH PRODUCTS AND SERVICES FOR THE AUTOMOTIVE SPACE AND DEFENSE AND INFORMATION MARKETS MR STAUDHAMMER WAS FORMERLY VICE PRESIDENT AND DIRECTOR OF THE COMPANY'S CENTER FOR AUTOMOTIVE TECHNOLOGY THE COMPANY SAID IT HAS NOT YET NAMED A SUCCESSOR TO MR STAUDHAMMER 9307020165 930702 CONSOLIDATED STORES SALES JUMP COLUMBUS OHIO CONSOLIDATED STORES CORP SAID SALES FOR THE FOUR WEEKS ENDED JUNE 26 JUMPED 20 TO A RECORD HIGH OF 727 MILLION FROM 607 MILLION A YEAR AGO COMPARABLESTORE SALES CLIMBED 65 THE COMPANY SAID COMPARABLESTORE SALES ARE THOSE IN STORES OPEN TWO YEARS AT THE BEGINNING OF THE FISCAL YEAR 9307020164 930702 WHO'S NEWS ERNST & YOUNG NAMES FOUR VICE CHAIRMEN NEW YORK ERNST & YOUNG ONE OF THE BIG SIX ACCOUNTING FIRMS NAMED FOUR NEW VICE CHAIRMEN J DOUGLAS PHILLIPS 52 YEARS OLD WHO WILL HEAD THE WEST REGION HAD BEEN A MANAGING PARTNER IN THE ST LOUIS OFFICE HE SUCCEEDS WILLIAM L KIMSEY 50 WHO WAS NAMED COCHAIRMAN IN LATE MAY DENNIS R PURDUM 48 WHO WILL HEAD THE NORTHEAST REGION HAD BEEN A MANAGING PARTNER IN THE HOUSTON OFFICE HE FILLS A VACANCY LEFT BY THE MAY ELECTION OF PHILIP A LASKAWY 52 AS DEPUTY CHAIRMAN H RAY EANES 52 WHO WILL HEAD FINANCE AND ADMINISTRATION HAD BEEN MANAGING PARTNER OF THE SOUTHEAST REGION HE SUCCEEDS ROBERT STREIT 52 WHO WILL BECOME MANAGING PARTNER OF THE FIRM'S ST LOUIS OFFICE SUCCEEDING MR PHILLIPS WILLIAM J LIPTON 46 WHO WILL HEAD TAX SERVICES HAD BEEN A MANAGING PARTNER IN THE STAMFORD CONN OFFICE HE SUCCEEDS MICHAEL HENNING 53 WHO WAS NAMED COCHAIRMAN IN LATE MAY SUCCESSORS FOR MR EANES AND MR LIPTON HAVEN'T BEEN NAME YET MR PHILLIPS WILL BE BASED IN LOS ANGELES WHILE THE THREE OTHER EXECUTIVES WILL BE BASED IN NEW YORK THE CHANGES EFFECTIVE OCT 1 BOOST THE NUMBER OF VICE CHAIRMEN TO 15 9307020163 930702 RIVIERA HOTEL & CASINO REGROUPS LAS VEGAS NEVADA THE RIVIERA HOTEL & CASINO EMERGED FROM CHAPTER 11 BANKRUPTCYLAW REORGANIZATION 18 MONTHS AFTER INVESTOR MESHULAM RIKLIS AGREED TO TURN THE STRIP RESORT OVER TO CREDITORS AS PART OF A SOCALLED PREPACKAGED BANKRUPTCY PLAN UNDER THE PLAN SECURED DEBTHOLDERS RECEIVED ALL OF THE COMMON STOCK OF THE RESORT AND 100 MILLION PRINCIPAL AMOUNT OF SECURED 11 NOTES DUE 2002 IN EXCHANGE FOR 126 MILLION OF OUTSTANDING DEBT ANALYSTS SAID THE 2100ROOM PROPERTY HAD BEEN HINDERED BY RECESSION COMPETITION AND ITS OWN AMBITIOUS EXPANSION PLANS 9307020162 930702 INTERNATIONAL NORWEGIAN JOBLESS RATE OSLO NORWAY'S OFFICIAL UNEMPLOYMENT RATE WAS 58 OF THE WORK FORCE AT THE END OF JUNE UP FROM 51 A MONTH EARLIER THE LABOR DIRECTORATE SAID 123700 NORWEGIANS WERE REGISTERED WITH GOVERNMENT EMPLOYMENT OFFICES AS BEING COMPLETELY UNEMPLOYED IN LATE JUNE AN INCREASE OF 15300 FROM MAY 9307020161 930702 WHO'S NEWS SIMTEK CORP SIMTEK CORP COLORADO SPRINGS COLO KLAUS C WIEMER 55 YEARS OLD FORMERLY PRESIDENT OF CHARTERED SEMICONDUCTER MANUFACTURING OF SINGAPORE WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF THIS MAKER OF SEMICONDUCTOR MEMORIES MR WIEMER ALREADY A DIRECTOR SUCCEEDS RICHARD PETRITZ 70 WHO WILL REMAIN CHAIRMAN MR PETRITZ SAID HE WAS STEPPING ASIDE AS CHIEF EXECUTIVE BECAUSE THE COMPANY NEEDS AN EXECUTIVE WITH MORE PRODUCTION EXPERIENCE TO MANAGE ITS EXPANDING PRODUCTION NEEDS 9307020160 930702 WHO'S NEWS LESCO INC LESCO INC CLEVELAND WILLIAM E FOLEY 45 YEARS OLD FORMERLY PRESIDENT AND CHIEF EXECUTIVE OF IMPERIAL WALLCOVERINGS INC A UNIT OF PRIVATELY HELD COLLINS & AIKMAN INC WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF THIS MAKER AND MARKETER OF TURFCARE PRODUCTS AND EQUIPMENT HE SUCCEEDS JAMES I FITZGIBBON 67 A FOUNDER OF LESCO WHO CONTINUES AS CHAIRMAN OF THE COMPANY LESCO IS ALSO A SUPPLIER OF GOLF COURSE EQUIPMENT AND OPERATES A LAWNSERVICE BUSINESS 9307020159 930702 BUSINESS BRIEF LUKENS INC TWO PIPEPRODUCT CONCERNS TO BE SOLD TO CANADA FIRM LUKENS INC AS PART OF ITS PLAN TO SELL NONSTEEL OPERATIONS SAID IT AGREED TO SELL TWO PIPEPRODUCT BUSINESSES TO SHAW INDUSTRIES LTD REXDALE ONTARIO TERMS WEREN'T DISCLOSED THE TWO BUSINESSES ENERGY COATINGS CO AND CATODIC PROTECTION SERVICES CO HAVE COMBINED ANNUAL SALES OF 92 MILLION ENERGY COATINGS SUPPLIES PIPE COATINGS TO THE OIL AND GAS INDUSTRIES CATODIC PROVIDES PROTECTION MATERIALS AND ENGINEERING SERVICES FOR METALLIC STRUCTURES INCLUDING PIPELINES TANKS AND UTILITY PIPING SYSTEMS SHAW SUPPLIES PIPE COATINGS AND OTHER GOODS AND SERVICES TO THE ENERGY INDUSTRY LUKENS IS BASED IN COATESVILLE PA 9307020158 930702 FIBREBOARD PURCHASES SKI RESORT CONCORD CALIF FIBREBOARD CORP SAID IT COMPLETED THE PURCHASE OF SIERRA SKI RANCH A SKI RESORT NEAR LAKE TAHOE FOR 13 MILLION 9307020157 930701 REPORT ON EUROPE FINANCIAL MARKETS STOCK AND BOND MARKETS SEE RECOVERY BUT AWAIT NEW GERMAN RATE CUTS BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL FINANCIAL MARKETS ARE STARTING TO SEE WHAT REMAINS FOR ALMOST EVERYONE ELSE A RATHER HAZY NOTION ECONOMIC RECOVERY IN EUROPE ALREADY STOCK PRICES IN COUNTRIES THAT DEVALUED THEIR CURRENCIES LAST YEAR HAVE POSTED HEFTY GAINS WITH SOME UP NEARLY 30 SO FAR EQUITIES HAVE STEAMED AHEAD IN IRELAND FINLAND NORWAY ITALY AND SPAIN BASED ON THE NEW FREEDOMS THOSE COUNTRIES HAVE HAD TO REDUCE INTEREST RATES ALL OF THEM HAVE OVER THE PAST 12 MONTHS EITHER DEVALUED THEIR CURRENCIES IN THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM OR DECOUPLED FROM INFORMAL LINKS UP TO NOW INVESTORS HAVE VERY MUCH FAVORED THE DEVALUERS AND THE RENEGADES FROM THE ERM SAYS STEPHEN PEARSON A STRATEGIST AT GT MANAGEMENT PLC NOW THAT THE GERMAN ECONOMY IS INDISPUTABLY GRINDING TO A HALT THE NEXT HALF OF THE YEAR IS LIKELY TO BE MARKED BY A SERIES OF GERMAN INTEREST RATE CUTS AS A RESULT INVESTORS SEEM POISED TO TURN THEIR ATTENTION TO THE EUROPEAN COUNTRIES THAT HAVE KEPT INTEREST RATES HIGH IN ORDER TO PROTECT THE VALUE OF THEIR CURRENCIES DURING THE FIRST HALF OF THE YEAR MARKETS IN FRANCE BELGIUM THE NETHERLANDS AND GERMANY HAVE UNDERPERFORMED THE EUROPEAN AVERAGE THEY ARE LIKELY SOON TO BEGIN MAKING UP FOR LOST TIME THERE IS OF COURSE A RISK TO THIS RATHER ROSY SCENARIO IF THE BUNDESBANK DIRECTORS DECIDE THAT INFLATION IS AGAIN A SERIOUS THREAT AND THEY BECOME INCREASINGLY WORRIED ABOUT THE MARK WEAKENING VS OTHER EUROPEAN CURRENCIES THEY COULD ENACT FEWER SMALLER RATE CUTS MARKET PARTICIPANTS ON AVERAGE ARE EXPECTING GERMAN RATE CUTS OF AT LEAST 15 PERCENTAGE POINTS OVER THE NEXT SIX MONTHS ANYTHING LESS THAN THAT WOULD PROBABLY SPARK SUSTAINED SELLING HERE'S A COUNTRYBYCOUNTRY LOOK BRITAIN HAS BEEN THE ONLY NATION THAT FREED ITS CURRENCY FROM THE ERM WITHOUT SEEING ITS EQUITY MARKET RISE STOCK PRICES FOR THE YEAR TO DATE ARE UP A MEAGER 15 THE WORST RESULT OF MAJOR EUROPEAN BOURSES THE NEXT SIX MONTHS SEEM LIKELY TO BE DISAPPOINTING TOO MARKET OPTIMISM WAS GIVEN A SLIGHT BOOST IN MAY BY THE RESIGNATION OF NORMAN LAMONT AS CHANCELLOR OF THE EXCHEQUER AND THE NAMING OF KENNETH CLARKE AS HIS SUCCESSOR THE NEW APPARENTLY PRUDENT CHANCELLOR HAS BEEN REASONABLY GOOD FOR SENTIMENT IN THE GOVERNMENT BOND OR GILT MARKET THE GILT MARKET IS VULNERABLE TO THE SUPPLY OF NEW PAPER SAYS MALCOLM ROBERTS HEAD OF RESEARCH AT UBS LTD BUT THERE WILL BE A TEMPORARY PHENOMENON OF FOREIGN INVESTORS BUYING GILTS BECAUSE IT'S THE FIRST PLACE TO GO WHEN THE DEUTSCHE MARK IS DECLINING MARKET WATCHERS EXPECT AT LEAST A MODEST IMPROVEMENT IN GERMAN STOCK AND BOND MARKETS FOR THE REST OF THE YEAR WITH THE GLOOM OVER GERMANY'S SPUTTERING ECONOMY AND PLUNGING CORPORATE RESULTS PIERCED SOMEWHAT BY THE WIDELY EXPECTED SERIES OF BUNDESBANK RATE CUTS THE RECESSION IS BEGINNING TO SHOW SIGNS OF BOTTOMING OUT INDUSTRIAL ORDERS FROM ABROAD HAVE STARTED TO SHOW A MARKED UPTURN DESPITE THE PERSISTENT DECLINE IN DOMESTIC ORDERS AND INDUSTRIAL OUTPUT IS ON THE RISE WHILE THOSE GREEN SHOOTS OF RECOVERY WILL DO NOTHING TO HELP 1993 CORPORATE EARNINGS THEY PROVIDE THE GROUNDWORK FOR A GOOD BOOST FOR 1994 EARNINGS MARKET EXPERTS EXPECT INSTITUTIONAL INVESTORS TO BEGIN BUYING INTO THE STOCK MARKET LATE THIS YEAR BUT PRIVATE INVESTORS WILL LIKELY WAIT MUCH LONGER UNTIL SIGNS OF RECOVERY ARE VISIBLE DESPITE THE GLOOM OF FRENCH INDUSTRIALISTS IN THE FACE OF THE EUROPEAN RECESSION FINANCIAL STRATEGISTS ARE MOSTLY OPTIMISTIC ABOUT THE OUTLOOK OVER THE NEXT SIX MONTHS ON THE BULLISH SIDE THEY SAY SHORTTERM RATES WILL CONTINUE TO FALL PROVIDING FRANCE WITH A MORE NORMAL YIELD CURVE WITHIN A MATTER OF MONTHS THIS WILL GIVE BOND MARKETS A BOOST WHILE EQUITIES ARE LIKELY TO BENEFIT BOTH FROM LOWER RATES AND FROM A NUMBER OF TAX INCENTIVES AT THE SAME TIME THE FRANC IS EXPECTED TO HOLD ITS GROUND COMFORTABLY AGAINST THE EMBATTLED MARK THESE FACTORS ARE ALREADY DRAWING INSTITUTIONAL INVESTORS BACK INTO THE MARKET JACQUES LEREBOULLET CHIEF INVESTMENT STRATEGIST FOR THE CAISSE DES DEPOTS PORTFOLIO MANAGEMENT ARM CDC GESTION SAYS THAT WITHIN THE LAST MONTH FOREIGN INVESTORS HAVE STARTED TO BUY FRENCH STOCKS AGAIN A NEGATIVE FACTOR HANGING OVER THE MARKETS IS THE IMPACT OF THE RECESSION ON FRENCH BUSINESSES PIERRE JOLAIN CHIEF FUND MANAGER AT CREDIT COMMERCIAL DE FRANCE SAYS THAT ALTHOUGH FRENCH SHORTTERM RATES WILL DROP TO AROUND 5 OR EVEN LESS BY YEAR END THE US'S RECENT EXPERIENCE HAS SHOWN THAT CHEAPER CREDIT TAKES A GOOD SIX TO NINE MONTHS TO AFFECT ECONOMIC PERFORMANCE AS A RESULT MR JOLAIN RECKONS THAT THE FRENCH STOCK MARKET IS FAIRLY PRICED AT CURRENT LEVELS DESPITE THE SWISS ECONOMY'S MISERABLE ECONOMIC PERFORMANCE OVER THE PAST TWO YEARS AND CONTINUED NEGATIVE ANNUAL GDP GROWTH IN 1993 MARKET ECONOMISTS FORECAST A STRONG SWISS FRANC AND FURTHER ADVANCES IN SWISS SHARE PRICES THEY HAVE RISEN ABOUT 11 SO FAR THIS YEAR MARKET ANALYSTS EXPECT SHORTTERM INTEREST RATES TO DECLINE FROM A PRESENT LEVEL OF JUST UNDER 5 TO ABOUT 43 BY THE END OF 1993 AND 4 FOR 1994 LESS DOWNWARD POTENTIAL IS EXPECTED IN BOND YIELDS OVER THE COMING MONTHS YIELDS HAVE ALREADY DROPPED FROM 760 ABOUT A YEAR AGO TO AROUND 490 AT PRESENT A VERY STEEP FALL BY SWISS STANDARDS WITH A CHANCE OF LOWER INTEREST RATES AHEAD AND A POSSIBLE PICKUP OF CORPORATE EARNINGS LATER THIS YEAR ANALYSTS SAY FUNDS COULD FLOW FROM THE DUTCH BOND MARKET INTO STOCKS BUT DON'T EXPECT ANY DRAMATIC SHIFTS SOON THE DUTCH STOCK MARKET IS ALREADY NEAR ITS RECORD HIGH SECONDQUARTER AND FIRSTHALF CORPORATE EARNINGS MEANWHILE ARE EXPECTED TO BE DISAPPOINTING THE MILAN STOCK MARKET GAINED AN IMPRESSIVE 18 IN THE FIRST HALF OF 1993 BECAUSE OF THE SHARP DECLINES IN INTEREST RATES AND INVESTORS' BELIEF THAT ITALY'S ANTICORRUPTION CAMPAIGN WILL EVENTUALLY HELP THE COUNTRY AFTER THE BIG RALLY MANY NOW EXPECT THE ENTHUSIASM FOR STOCKS TO SUBSIDE IN THE SECOND HALF ANALYSTS SAY SHORTTERM INTEREST RATES WHICH HAVE FALLEN ABOUT THREE PERCENTAGE POINTS SINCE JANUARY TO 105 MAY ONLY FALL ANOTHER PERCENTAGE POINT OR SO ANOTHER VARIABLE IS THE LIRA ITALY NOW HAS A HIGH POLITICAL RISK PREMIUM BUILT INTO THE LIRA SAYS PETER GYLLENBAGA OF CREDIT SUISSE FIRST BOSTON IN MILAN HE THINKS THE LIRA IS UNDERVALUED BY 2025 SCANDINAVIAN STOCK MARKETS ARE A STUDY IN CONTRASTS FALLING INTEREST RATES AND AN EXPECTED EXPLOSION OF CORPORATE PROFITS FUELED BY HEFTY CURRENCY DEVALUATIONS HAVE MADE BOURSES IN OSLO STOCKHOLM AND HELSINKI FINLAND SOME OF EUROPE'S BEST PERFORMERS THE RALLY COMES DESPITE ONE OF THE DEEPEST FINNISH AND SWEDISH RECESSIONS SINCE THE 1930S GROSS NATIONAL PRODUCT IN BOTH COUNTRIES WILL DECLINE THIS YEAR FOR THE THIRD CONSECUTIVE YEAR AND ECONOMISTS HAVE SCANT HOPES FOR RECOVERY UNTIL 1995 IN NORWAY ECONOMIC RECOVERY IS FURTHER ALONG FOLLOWING A DEVASTATING ECONOMIC RECESSION DURING THE MID1980S BUT THE OSLO STOCK EXCHANGE'S 30 RISE THIS YEAR HAS BEEN PROPELLED BY FALLING INTEREST RATES MARKET ANALYSTS FRET THAT NORWAY'S ECONOMIC RECOVERY IS TOO FEEBLE TO SUSTAIN THE STOCK MARKET RALLY HELSINKI HAS BEEN ONE OF THE WORLD'S HOTTEST MAINSTREAM MARKETS SO FAR WITH THE HEX GENERAL INDEX SURGING ABOUT 33 BIG EXPORTING COMPANIES HAVE LED THE ADVANCE INTERNATIONAL DEMAND FOR FINNISH EQUITIES HAS BEEN WHETTED BY LEGISLATION ABOLISHING PREVIOUS CURBS ON FOREIGN OWNERSHIP THE STOCKHOLM STOCK EXCHANGE'S AFFARSVARLDEN GENERAL INDEX GAINED ABOUT 17 DURING THE FIRST HALF OF THE YEAR TWO DEVALUATIONS OF THE PESETA IN THE FALL FOLLOWED BY ANOTHER IN MAY PAVED THE WAY FOR A DOWNWARD DRIFT IN INTEREST RATES IN THE FIRST HALF OF 1993 AND DROVE MADRID SHARE PRICES TO AN 18 GAIN BY MIDYEAR IF ACTING PRIME MINISTER FELIPE GONZALEZ SUCCEEDS AT FORMING A STABLE GOVERNMENT IN JULY THE GENERAL INDEX MAY TOP 270 BY THE END OF THE YEAR BOOSTED BY A FURTHER DROP IN RATES ANALYSTS SAY A WEAKER DEUTSCHE MARK ALSO LEAVES GREATER SCOPE FOR INTEREST RATE CUTS SAYS PAUL FARROW HEAD OF INTERNATIONAL SALES AT AHORRO CORP FINANCIERA SA BULLISH ON STOCKS BEARISH ON BONDS SUMMARIZES THE LOCAL MARKET SENTIMENT MARKET ANALYSTS SAY THE RECESSION MAY BE BOTTOMING OUT A BULLISH INDICATOR FOR STOCKS IN THE MEANTIME THE YIELD PREMIUM HAS NARROWED BETWEEN BELGIAN GOVERNMENT BONDS AND THEIR GERMAN EQUIVALENTS FLASHING A WARNING SIGN TO BOND INVESTORS 9307020156 930702 BUSINESS BRIEF PEDIATRICIANS URGED TO DROP OPPOSITION TO BABYFORMULA ADS ELK GROVE VILLAGE ILL FLORIDA'S ATTORNEY GENERAL URGED AN INFLUENTIAL GROUP OF PEDIATRICIANS TO RESCIND ITS OPPOSITION TO BABYFORMULA ADVERTISING A MOVE THAT WOULD HAVE A BIG IMPACT ON THE 2 BILLIONAYEAR FORMULA INDUSTRY ATTORNEY GENERAL ROBERT A BUTTERWORTH IN A LETTER TO THE AMERICAN ACADEMY OF PEDIATRICS ATTACKED THE GROUP'S CURRENT NOADVERTISING POLICY AS DAMAGING TO FORMULAINDUSTRY COMPETITION IN ADDITION MR BUTTERWORTH MADE PUBLIC NEW DOCUMENTS PORTRAYING THE ACADEMY AS WORKING SEEMINGLY HANDINHAND WITH FORMULA COMPANIES ESPECIALLY ABBOTT LABORATORIES OF NORTH CHICAGO ILL IN LATE MAY MR BUTTERWORTH'S OFFICE AND A RANGE OF PRIVATE PLAINTIFFS SETTLED FOR MORE THAN 140 MILLION ANTITRUST LITIGATION AGAINST ABBOTT BRISTOLMYERS SQUIBB CO AND AMERICAN HOME PRODUCTS CORP COURT DOCUMENTS SHOWED THE ACADEMY RELIED ON MILLIONS OF DOLLARS IN CONTRIBUTIONS FROM THE INDUSTRY IN THE 1980S WHILE THE GROUP OPPOSED CONSUMER ADVERTISING THAT COULD HAVE AIDED THE ENTRY OF NEW COMPETITORS INTO THE FORMULA MARKET THE FRESH DOCUMENTS SUGGEST STRONG LINKS BETWEEN THE INDUSTRY DONATIONS AND THE ACADEMY'S ANTIAD STANCE IN ONE 1989 LETTER JAMES STRAIN THEN ACADEMY EXECUTIVE DIRECTOR THANKED RICHARD GAST PRESIDENT OF ABBOTT'S FORMULAMAKING ROSS LABORATORIES UNIT AT THE TIME FOR A 125000 CONTRIBUTION MR GAST PRESENTED THE CHECK DURING A MEETING AT THE ACADEMY'S HEADQUARTERS HERE AFTER THANKING DR GAST DR STRAIN WROTE WE'RE TOGETHER ON OUR OPPOSITION TO DIRECT ADVERTISING OF FORMULA TO THE PUBLIC AND WE'LL CONTINUE TO DO WHAT WE CAN WITHIN LEGAL AND ETHICAL LIMITS TO DEAL WITH THE PROBLEM ABBOTT SAID YESTERDAY IT OPPOSES ADS BECAUSE NEW MOTHERS SHOULD INSTEAD SEEK ADVICE FROM HEALTHCARE PROFESSIONALS DR STRAIN DEFENDED THE GROUP'S OPPOSITION TO ADVERTISING ON THE GROUNDS THAT ADS WOULD REDUCE BREASTFEEDING WHICH HAS WELLKNOWN HEALTH ADVANTAGES FOR BABIES 9307020155 930702 MARKETING BRIEF TIMES MIRROR CO ARGYLE TELEVISION HOLDING BUYS TWO BROADCAST STATIONS TIMES MIRROR CO LOS ANGELES SAID IT COMPLETED THE SALE OF ITS BROADCAST TELEVISION STATIONS IN ST LOUIS AND BIRMINGHAM ALA TO ARGYLE TELEVISION HOLDING INC THE STATIONS KTVI IN ST LOUIS AND WVTM IN BIRMINGHAM ABC AND NBC AFFILIATES RESPECTIVELY ARE TWO OF FOUR STATIONS TIMES MIRROR AGREED TO SELL TO ARGYLE LAST SPRING FOR ABOUT 335 MILLION IN CASH AND SECURITIES THE SALE OF THE REMAINING TWO IN DALLAS AND AUSTIN TEXAS IS SUBJECT TO A LICENSE RENEWAL PROCESS BY THE FEDERAL COMMUNICATIONS COMMISSION AND THE SALE ISN'T EXPECTED TO CLOSE BEFORE THE END OF 1993 THE COMPANY SAID TIMES MIRROR IS A MEDIA AND INFORMATION COMPANY ARGYLE IS AN AFFILIATE OF ARGYLE COMMUNICATIONS PARTNERS LP SAN ANTONIO TEXAS 9307020153 930702 HOLIDAY NOTICE THE WALL STREET JOURNAL WON'T BE PUBLISHED MONDAY IN OBSERVANCE OF THE INDEPENDENCE DAY HOLIDAY 9307020152 930702 BUSINESS BRIEF SALANT CORP REORGANIZATION PLAN WINS BACKING OF MAJOR CREDITORS SALANT CORP SAID CONTINENTAL BANK VOTED FOR ITS THIRD AMENDED BANKRUPTCY REORGANIZATION PLAN GIVING THE PLAN THE SUPPORT OF ALL OF SALANT'S MAJOR CREDITORS AND EQUITY HOLDERS CONTINENTAL BANK IS A UNIT OF CONTINENTAL BANK CORP OF CHICAGO OTHER SUPPORTERS OF THE PLAN INCLUDE SALANT'S PREPETITION BANK LENDERS ITS OFFICIAL COMMITTEE OF UNSECURED CREDITORS ITS OFFICIAL COMMITTEE OF EQUITY SECURITY HOLDERS AND APOLLO APPAREL PARTNERS LP ITS LARGEST UNSECURED CREDITOR THE HEARING FOR CONFIRMATION OF THE PLAN WILL BE HELD ON JULY 26 THE APPAREL COMPANY SAID IN NEW YORK SALANT HAS BEEN IN BANKRUPTCY COURT PROCEEDINGS FOR ABOUT THREE YEARS AND HAD A LOSS LAST YEAR OF 19 MILLION ON REVENUE OF 397 MILLION 9307020151 930702 BUSINESS BRIEF DUPONT CO FIRM COMPLETES ACQUISITION OF THE NYLON BUSINESS OF ICI DUPONT CO WILMINGTON DEL SAID IT HAS COMPLETED THE ACQUISITION OF THE NYLON BUSINESS OF BRITAIN'S IMPERIAL CHEMICAL INDUSTRIES PLC FOLLOWING CLEARANCE BY THE US FEDERAL TRADE COMMISSION IN RETURN FOR THE NYLON BUSINESS WHOSE 900 MILLION IN SALES ARE PRIMARILY CONCENTRATED IN EUROPE DUPONT IS MAKING PAYMENTS TO ICI AND IS ALSO GIVING ICI ITS WORLDWIDE ACRYLICS PRODUCTS BUSINESS WHICH HAD SALES LAST YEAR OF 350 MILLION THE PAYMENT PORTION OF THE DEAL WAS CHANGED FROM THE ORIGINAL 430 MILLION THE REVISION WAS DUE TO CHANGES IN THE TERMS REQUESTED BY THE EUROPEAN COMMUNITY COMMISSION AND THE FTC AND A DECLINE OF BUSINESS CONDITIONS IN EUROPE DUPONT SAID IT WILL MAKE AN IMMEDIATE PAYMENT OF 150 MILLION AND AN ADDITIONAL 165 MILLION IN DEFERRED PAYMENTS WILL BE MADE BETWEEN 1994 AND 2002 THEN A FINAL PAYMENT OF AS MUCH AS 375 MILLION COULD BE MADE IF THE ACQUIRED NYLON TEXTILE FILAMENT BUSINESS IN EUROPE MEETS CERTAIN REVENUE GUIDELINES DUPONT CO'S RECENTLY COMPLETED ACQUISITION OF THE NYLON BUSINESS OF BRITAIN'S IMPERIAL CHEMICAL INDUSTRIES PLC WAS CARRIED OUT UNDER A CONSENT ORDER FROM THE US FEDERAL TRADE COMMISSION UNDER THE ORDER ICI MUST TRANSFER TO A THIRD PARTY PART OF ITS DOWNSTREAM ACRYLICSPOLYMER PRODUCTION IN THE US AN ARTICLE LAST FRIDAY FAILED TO INCLUDE THAT REQUIREMENT 9307020150 930702 WHO'S NEWS TABATA TAPPED TO HEAD NISSAN NORTH AMERICA LOS ANGELES NISSAN MOTOR CORP SAID IT NAMED TETSUO TABATA PRESIDENT OF NISSAN NORTH AMERICA INC EFFECTIVE IMMEDIATELY MR TABATA WAS ALSO NAMED CHAIRMAN OF NISSAN MOTOR CORP USA AND CHAIRMAN OF NISSAN MOTOR MANUFACTURING CORP USA MR TABATA SUCCEEDS HARUO OHNO WHO WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CALSONIC CORP A NISSAN GROUP COMPANY THAT PRODUCES AUTOMOTIVE AIR CONDITIONERS RADIATORS AND RELATED EQUIPMENT MR TABATA 54 YEARS OLD MOST RECENTLY HEADED THE AUTO MAKER'S OVERSEAS OPERATIONS AND SERVED AS NISSAN'S DEPUTY GENERAL MANAGER FOR LATIN AMERICA AND THE CARIBBEAN HE REMAINS A MANAGING DIRECTOR OF NISSAN MOTOR CO THE JAPANESE PARENT MR TABATA JOINED NISSAN IN 1962 AFTER GRADUATING FROM TOKYO UNIVERSITY HIS APPOINTMENT COMES AS NISSAN NORTH AMERICA FEELS PRESSURE FROM ITS PARENT TO BOOST PROFITS 9307020149 930702 BUSINESS BRIEF DQE INC DUQUESNE LIGHT TO BUY BACK FIRSTMORTGAGE BOND SERIES DUQUESNE LIGHT CO PITTSBURGH SAID IT WILL REDEEM SIX SERIES OF FIRSTMORTGAGE BONDS ON AUG 2 THE DQE INC UNIT WILL REDEEM THE 75 SERIES DUE DEC 1 2001 AT 10194 OF PRINCIPAL AMOUNT PLUS ACCRUED INTEREST THE COMPANY HAS 26461 MILLION IN THE BONDS OUTSTANDING IT WILL REDEEM THE 75 SERIES DUE JUNE 1 2002 AT 10207 OF PRINCIPAL AMOUNT PLUS ACCRUED INTEREST IT HAS 2847 MILLION IN THE BONDS OUTSTANDING IT WILL REDEEM THE 725 SERIES DUE JAN 1 2003 AT 10199 OF PRINCIPAL AMOUNT PLUS ACCRUED INTEREST IT HAS 3267 MILLION IN THE BONDS OUTSTANDING IT WILL REDEEM THE 6375 SERIES DUE FEB 1 1998 AT 10102 OF PRINCIPAL AMOUNT PLUS ACCRUED INTEREST IT HAS 347 MILLION IN THE BONDS OUTSTANDING IT WILL REDEEM THE 525 SERIES DUE FEB 1 1997 AT 10066 OF PRINCIPAL AMOUNT PLUS ACCRUED INTEREST IT HAS 246 MILLION IN THE BONDS OUTSTANDING IT WILL REDEEM THE 5125 SERIES DUE FEB 1 1996 AT 10044 OF PRINCIPAL AMOUNT PLUS ACCRUED INTEREST IT HAS 228 MILLION IN THE BONDS OUTSTANDING 9307020148 930702 LIFE MEDICAL SCIENCES PRINCETON NJ LIFE MEDICAL SCIENCES INC SAID IT RECEIVED FOOD AND DRUG ADMINISTRATION APPROVAL TO BEGIN MARKETING A SKINSTRETCHING SYSTEM IN THE US DUBBED SURECLOSURE THE COMPANY WHICH DEVELOPS WOUNDCLOSURE PRODUCTS AND GELS FOR ACCELERATED HEALING OF DIFFICULT WOUNDS WILL BEGIN SHIPPING THE PRODUCT IN AUGUST 9307020147 930702 BUSINESS BRIEF IMC FERTILIZER GROUP INC CONCERN FREEPORT UNIT JOIN PHOSPHATE FERTILIZER ASSETS IMC FERTILIZER GROUP INC AND FREEPORTMCMORAN RESOURCE PARTNERS LP COMBINED THEIR PHOSPHATE FERTILIZER BUSINESSES INTO A JOINT VENTURE DESIGNED TO CUT PRODUCTION COSTS THE NATION'S TWO BIGGEST MAKERS OF PHOSPHATE FERTILIZER ANNOUNCED PLANS FOR THE VENTURE IN JANUARY RESULTS AT BOTH COMPANIES HAVE BEEN UNDER PRESSURE FROM DECLINING EXPORT SALES AND PRICES THAT HAVE REACHED THE LOWEST LEVEL IN MORE THAN TWO DECADES NORTHBROOK ILLBASED IMC HAS ADDITIONALLY BEEN HURT BY OTHER FACTORS INCLUDING COSTLY LITIGATION THE NEW COMPANY KNOWN AS IMCAGRICO CO EXPECTS THE COMBINATION TO YIELD AT LEAST A 95 MILLION REDUCTION IN OVERALL COSTS FREEPORTMCMORAN RESOURCE PARTNERS BASED IN NEW ORLEANS IS 513OWNED BY FREEPORT MCMORAN INC THE VENTURE DOESN'T INCLUDE IMC FERTILIZER'S POTASH RAINBOW MIXED FERTILIZERS DIVISION OR ITS SULPHUR OIL AND GAS OPERATIONS FREEPORT SIMILARLY RETAINS ITS SULPHUR OIL AND GAS OPERATIONS 9307020146 930702 MARKETING & MEDIA COCACOLA CO PLANS TO BROADEN ITS LINE OF MINUTE MAID SODAS ATLANTA COCACOLA CO EXPANDING FURTHER INTO NONCOLA BEVERAGES SAID IT IS BROADENING ITS LINE OF MINUTE MAIDBRAND SODAS WITH 10 NEW FLAVORS WITH THE NEW DRINKS THE COMPANY IS TRYING TO CAPTURE A GREATER SHARE OF THE FRUITFLAVORED SOFTDRINK MARKET WHICH CURRENTLY REPRESENTS ABOUT 10 OF THE ROUGHLY 48 BILLION IN TOTAL INDUSTRY SALES FRUITFLAVORED DRINKS TEND TO BE MOST POPULAR AMONG YOUNG CHILDREN AND BLACK AND HISPANIC CONSUMERS THE NEW MINUTE MAID SOFTDRINK FLAVORS INCLUDE STRAWBERRY PINEAPPLE LEMONADE AND PEACH COKE'S EXISTING MINUTE MAID ORANGE SODA AND DIET ORANGE HAVE BEEN REFORMULATED AND WILL BE SOLD NATIONALLY WHILE THE NEW FLAVORS WILL BE DISTRIBUTED ACCORDING TO LOCAL PREFERENCES LEMONADE IS POPULAR IN THE MIDWEST FOR EXAMPLE WHILE PINEAPPLE SELLS WELL IN FLORIDA BOTH COKE AND RIVAL PEPSICO INC WHICH HAS LAUNCHED ITS OWN FRUIT DRINKS IN RECENT MONTHS HAVE BEEN STEPPING UP SALES OF SUCH BEVERAGES PARTLY BECAUSE CONSUMERS HAVE BEEN SHOWING LESS INTEREST IN COLAS BOTH COMPANIES ARE ACTIVELY MARKETING ICED TEAS AND SPORTS DRINKS AS WELL ADVERTISING FOR THE MINUTE MAID BEVERAGES WILL USE THE LINE GET INTENSE GET MINUTE MAID COCACOLA FOODS A DIVISION OF COCACOLA OWNS THE MINUTE MAID BRAND NAME AND SELLS ORANGE JUICE AND OTHER JUICES 9307020145 930702 BUSINESS BRIEF MATHSOFT INC STATISTICAL SCIENCES ACQUIRED IN CASH STOCK TRANSACTION MATHSOFT INC SAID IT ACQUIRED STATISTICAL SCIENCES INC OF SEATTLE FOR ABOUT 35 MILLION CASH AND 348000 MATHSOFT COMMON SHARES MATHSOFT BASED IN CAMBRIDGE MASS SAID IT MAY PAY AS MUCH AS 1 MILLION MORE IN CASH OR STOCK DEPENDING ON STATISTICAL SCIENCES' PERFORMANCE OVER A TWOYEAR PERIOD AND WOULD TAKE A CHARGE AGAINST EARNINGS IN THE FOURTH QUARTER AS A RESULT OF THE EXPECTED ALLOCATION OF A SIGNIFICANT PART OF THE PURCHASE PRICE TO PURCHASED RESEARCH AND DEVELOPMENT A SPOKESMAN SAID THE AMOUNT OF THE CHARGE HASN'T BEEN DETERMINED IN THE YEARAGO FOURTH QUARTER MATHSOFT EARNED 480000 ON REVENUE OF 47 MILLION WHILE STATISTICAL SCIENCES' SALES WERE ABOUT 34 MILLION IN 1992 MATHSOFT SAID 9307020144 930702 GERMANY'S WHOLESALE SALES WIESBADEN GERMANY GERMANY'S WHOLESALE SALES IN MAY FELL A NOMINAL 5 TO 78 BILLION MARKS 457 BILLION FROM A YEAR EARLIER ACCORDING TO THE GERMAN FEDERAL STATISTICS OFFICE IN REAL OR INFLATIONADJUSTED TERMS WHOLESALE SALES WERE DOWN 2 IN MAY FROM THE YEAREARLIER MONTH THE STATISTICS OFFICE DIDN'T PROVIDE SPECIFIC YEAREARLIER SALES FIGURES FOR THE FIRST FIVE MONTHS OF 1993 GERMAN WHOLESALE SALES TOTALED 395 BILLION MARKS A NOMINAL DECLINE OF 7 FROM THE YEAREARLIER PERIOD AND A REAL DECLINE OF 4 IN WESTERN GERMANY THE DECLINE IN WHOLESALE SALES IN MAY WAS A NOMINAL 6 AND A REAL 3 WHILE IN EASTERN GERMANY SALES WERE DOWN A NOMINAL 6 AND A REAL 9 9307020143 930702 BUSINESS BRIEF WANG LABORATORIES COMPUTER CONCERN TO SELL SOME UNIT ASSETS TO NASHUA WANG LABORATORIES INC REACHED AGREEMENT WITH NASHUA CORP TO SELL CERTAIN ASSETS OF WANG'S CONSUMABLE OFFICE AND COMPUTER SUPPLIES BUSINESS WANG EXPRESS THE LOWELL MASS COMPUTER AND SOFTWARE MAKER OPERATING UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE DIDN'T DISCLOSE TERMS AND SAID THE ACCORD IS SUBJECT TO COURT APPROVAL WANG SAID ASSETS SOLD TO NASHUA BASED IN NASHUA NH INCLUDE A BUSINESSTOBUSINESS CATALOG THAT SERVES WANG CUSTOMER REQUIREMENTS FOR CONSUMABLE OFFICE AND COMPUTER SUPPLIES SUCH AS PAPER TONER AND COMPUTER DISKS THE OPERATION WILL REMAIN IN WANG'S FACILITIES AND WILL CONTINUE DOING BUSINESS AS WANG EXPRESS AT LEAST FOR THE SHORT TERM THE COMPANY SAID NASHUA PLANS TO EXPAND THE CATALOG TO INCLUDE SUPPLIES AND ACCESSORIES COMPATIBLE WITH THE EQUIPMENT OF OTHER MANUFACTURERS 9307020142 930702 IBM IS PLANNING 2 BILLION CHARGE TO SLASH JOBS SECONDQUARTER WRITEOFF TO COVER 50000 PEOPLE TWICE EARLIER FORECAST BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP STILL MIRED IN ITS WORST SLUMP EVER IS PREPARING TO ANNOUNCE THIS MONTH A MASSIVE NEW CHARGE IN THE RANGE OF 2 BILLION TO PAY FOR SLASHING ITS WORK FORCE BY ABOUT 50000 PEOPLE THIS YEAR TWICE AS MANY AS IT HAD PREDICTED IBM WILL NEED THE NEW CHARGE BECAUSE ITS CURRENT ROUND OF BUYOUTS AND LAYOFFS GREATLY EXCEEDS ITS PREVIOUS ESTIMATE OF 25000 EMPLOYEES THE COLOSSAL 116 BILLION IN CHARGES IBM TOOK LAST YEAR INCLUDED PROVISIONS FOR CUTTING 25000 EMPLOYEES IN 1993 BUT IBM LATER WARNED THAT THAT ESTIMATE WOULD BE LOW AN IBM SPOKESMAN WOULDN'T COMMENT ON THE CUTS BUT INDUSTRY OFFICIALS CONFIRMED THE DETAILS OF THE NEW CHARGE WHICH IBM IS EXPECTED TO ANNOUNCE WITH ITS SECONDQUARTER RESULTS ON JULY 27 OFFICIALS WARNED THAT THE EXACT DOLLAR AND EMPLOYEE NUMBERS COULD STILL FLUCTUATE AS IBM COMPILES THE RESULTS OF A BIG JOBCUTTING PROGRAM THAT ENDED JUNE 30 IN MANY OF ITS LOCATIONS THE LATEST CUTS WILL SHRINK IBM'S HEAD COUNT TO ABOUT 250000 DOWN FROM A 1985 PEAK OF 405000 DEPENDING ON THE TAX TREATMENT IT ALSO COULD SHRINK IBM'S BOOK VALUE TO ABOUT 44 A SHARE IBM'S BATTERED STOCK HAS BEEN STEADILY FOLLOWING ITS BOOK VALUE DOWNWARD IT CLOSED YESTERDAY AT 4925 DOWN 125 CENTS AND FAR BELOW A 1987 PEAK OF 175 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MOREOVER IBM'S NEW CHAIRMAN LOUIS V GERSTNER IS WIDELY EXPECTED TO SHED MORE PEOPLE AND ASSETS LATER THIS YEAR THE CURRENT PROGRAM OF CUTS WAS LAUNCHED BEFORE MR GERSTNER ARRIVED AT IBM IN APRIL IN A MAY PROSPECTUS IBM WARNED THAT MR GERSTNER HAD ASKED HIS TOP MANAGERS TO SUBMIT THEIR PREDICTIONS FOR ADDITIONAL PERSONNEL AND ASSET REDUCTIONS IT SAID IBM WOULDN'T FINISH ANALYZING THOSE NUMBERS UNTIL THE SECOND HALF OF THE YEAR AND ADDED THAT BOTH THE CHARGES AND THE RESULTING CASH REQUIREMENTS COULD CONTINUE TO BE SIGNIFICANT MR GERSTNER'S FIRST MOVES AS CHAIRMAN INCLUDED HIRING TWO TOP LIEUTENANTS WITH SPECIAL EXPERTISE IN HACKING AWAY BLOATED CORPORATE OVERHEAD JEROME YORK FORMER CHIEF FINANCIAL OFFICER OF CHRYSLER CORP AND GERALD CZARNECKI WHO PRESIDED OVER BIG CUTBACKS AT HONOLULU'S HONFED BANK BOTH ARE NOW REVIEWING THE SPRAWLING IBM EMPIRE IN CLOSE CONSULTATION WITH MR GERSTNER EVEN AMID PLUNGING PROFIT MARGINS FOR ITS CHIEF BUSINESS MAINFRAME COMPUTERS IBM CAN AFFORD THE BIG NEW CHARGE IN JUNE IT RAISED 3 BILLION FROM A PACKAGE OF DEBT AND PREFERRED STOCK WALL STREET ANALYSTS ALSO WIDELY EXPECT THE IBM BOARD TO CUT ITS DIVIDEND AGAIN POSSIBLY AS SOON AS ITS NEXT MEETING ON JULY 27 THE CONSENSUS PREDICTION A CUT TO 1 A SHARE FROM THE CURRENT 216 A SHARE WITH ABOUT 570 MILLION SHARES OUTSTANDING THAT CUT WOULD SAVE IBM ABOUT 660 MILLION A YEAR IBM CUT ITS DIVIDEND FROM 484 A SHARE LAST YEAR IN THE MAY PROSPECTUS IT POINTEDLY WARNED ANOTHER CUT MIGHT COME SAYING IT WILL CONTINUE TO REVIEW CASH REQUIREMENTS INCLUDING THE LEVEL OF FUTURE DIVIDENDS THE LATEST PERSONNEL CUTS ARE THE MOST PAINFUL IN IBM'S HISTORY INCLUDING ITS FIRST LAYOFFS IN HALF A CENTURY IBM LONG PRIDED ITSELF ON ITS TRADITION OF FULL EMPLOYMENT TAKING ELABORATE PAINS TO TRANSFER EMPLOYEES HIT BY REORGANIZATIONS AND FACTORY SHUTDOWNS IBM ALSO GAVE MANY EMPLOYEES A POWERFUL INCENTIVE TO QUIT VOLUNTARILY THIS YEAR WARNING THAT ITS US BENEFIT PACKAGE WOULD SHRINK DRASTICALLY FOR ANYONE WHO LEFT AFTER JUNE 30 MANY EMPLOYEES OVERSEAS HAVE UNTIL DEC 31 TO TAKE THE CURRENT BENEFITS IN GENERAL IT COSTS IBM AN AVERAGE OF ROUGHLY 100000 FOR EACH DEPARTING EMPLOYEE MORE FOR SOME EUROPEAN EMPLOYEES LESS FOR LOWERPAID FACTORY WORKERS THE COMING CHARGE IS CURRENTLY EXPECTED TO BE SLIGHTLY LESS THAN 2 BILLION PRETAX ONE REASON IT INCLUDES A SIGNIFICANT NUMBER OF WORKERS FROM IBM'S MASSIVE COMPLEX OF MAINFRAME FACTORIES IN NEW YORK'S HUDSON RIVER VALLEY WITHOUT THE CHARGE ANALYSTS HAD BEEN EXPECTING IBM TO POST A SECONDQUARTER LOSS OF ABOUT 200 MILLION OR 35 CENTS A SHARE AND A FULLYEAR LOSS OF ABOUT 285 MILLION OR 50 CENTS A SHARE IN THE 1992 SECOND QUARTER IBM HAD NET INCOME OF 734 MILLION OR 129 A SHARE FOR ALL OF 1992 IT HAD A LOSS OF 497 BILLION OR 870 A SHARE INCLUDING THE HUGE CHARGES 9307020141 930702 INTERNATIONAL PHILLIPS PARTNERS PLAN TO REBUILD NORWAY OIL SITE BY ANN DE ROUFFIGNAC STAFF REPORTER OF THE WALL STREET JOURNAL PHILLIPS PETROLEUM CO AND ITS PARTNERS SAID THEY PLAN TO SPEND 3 BILLION TO 4 BILLION TO REBUILD EKOFISK A MAMMOTH AGING SERIES OF OIL AND GAS PLATFORMS CRUCIAL TO PETROLEUM PRODUCTION IN THE NORWEGIAN NORTH SEA NORWAY LAST FALL THREATENED TO SHUT DOWN THE FACILITY BY 1995 CLAIMING IT WAS UNSAFE THE NORWEGIAN PETROLEUM DIRECTORATE WHICH OVERSEES THE COUNTRY'S OIL OPERATIONS GAVE PHILLIPS A JULY 1 DEADLINE TO COME UP WITH A PROPOSAL TO FIX IT THE AGENCY SAID THAT EKOFISK'S EQUIPMENT WAS PERILOUSLY OLD INADEQUATELY MAINTAINED AND THAT THE SEABED WAS SINKING UNDER THE PLATFORMS LOCATED 200 MILES SOUTHWEST OF STAVANGER EKOFISK NOT ONLY PRODUCES OIL AND GAS FOR PHILLIPS AND ITS PARTNERS BUT ALSO SERVES AS A COLLECTION AND PROCESSING HUB FOR OTHER OIL FIELDS IN THE NORTH SEA PHILLIPS INSTALLED EKOFISK IN 1973 AND IT REMAINS THE COMPANY'S BIGGEST AND MOST PRODUCTIVE OILFIELD PHILLIPS WHICH IS BASED IN BARTLESVILLE OKLA OPERATES THE COMPLEX AND OWNS 369 OF IT A COMPANY SPOKESMAN SAID PHILLIPS'S SHARE OF THE ADDED EXPENSES WILL BE PROPORTIONATE TO ITS OWNERSHIP IT'S NOT A REAL POSITIVE DEVELOPMENT TO SPEND THAT MUCH MONEY SAYS BERNARD PICCHI AN OIL ANALYST AT KIDDER PEABODY & CO IN NEW YORK THE EKOFISK COMPLEX IS THE SINGLE MOST IMPORTANT PROFIT CENTER FOR PHILLIPS HE SAID EKOFISK ACCOUNTED FOR 127 MILLION OF PHILLIPS'S OPERATING PROFIT LAST YEAR 47 OF THE COMPANY'S TOTAL PHILLIPS IN 1992 HAD NET INCOME OF 180 MILLION AFTER SPECIAL ITEMS ON REVENUE OF 121 BILLION IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE PHILLIPS SHARES CLOSED AT 28875 DOWN 875 CENTS THE OTHER PARTNERS INCLUDE SUBSIDIARIES OF PETROFINA SA OF BRUSSELS AT 30 ITALY'S STATEOWNED OIL COMPANY ENTE NAZIONALE IDROCARBURI 1304 SOCIETE NATIONALE ELF AQUITAINE OF FRANCE 76 AND NORSK HYDRO SA OF NORWAY 67 THE REST IS HELD BY SMALL EUROPEAN COMPANIES 9307020140 930702 LAW LEGAL BEAT US INVESTIGATING WHETHER FIRMS IN DALLAS FIXED STARTING SALARIES BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL THE DEPARTMENT OF JUSTICE IS INVESTIGATING WHETHER LARGE DALLAS LAW FIRMS HAVE COLLUDED TO FIX SALARIES FOR SUMMER AND FIRSTYEAR ASSOCIATES PARTNERS AT SEVEN LARGE DALLAS FIRMS CONFIRMED THAT THEY RECEIVED CIVIL INVESTIGATIVE DEMANDS FROM THE DEPARTMENT'S ANTITRUST DIVISION SEEKING SALARY SCHEDULES FOR FIRSTYEAR ASSOCIATES AND LAW STUDENTS WORKING FOR THE SUMMER FROM 1989 TO 1992 THE AGENCY ALSO ASKED ABOUT THE PROCESS THE FIRMS USED FOR DETERMINING THOSE SALARIES THE EXISTENCE OF THE INVESTIGATION WAS ORIGINALLY REPORTED BY THE DOJ ALERT A WASHINGTONBASED NEWSLETTER LAW FIRM SALARIES ESPECIALLY FOR INEXPERIENCED LAWYERS HAVE BEEN A CONSTANT SOURCE OF IRRITATION FOR COMPANY EXECUTIVES WHO FEEL THAT THEY ARE TOO HIGH AND HAVE DRIVEN UP LEGAL COSTS NATIONALLY CLIENTS AND SOME LAWYERS HAVE SPECULATED FOR YEARS ABOUT THE DEGREE TO WHICH LAW FIRMS CONSULT EACH OTHER WHEN THEY SET FIRSTYEAR AND SUMMER ASSOCIATES SALARIES PARTNERS AT THE DALLAS FIRMS SAID THEY DON'T KNOW WHY THE GOVERNMENT SOUGHT THEIR FIRMS' SALARY INFORMATION IF WHAT THEY'RE LOOKING FOR IS COLLUSION THAT'S PUZZLING TO US BECAUSE WE DON'T SHARE THAT INFORMATION WITH OTHER LAW FIRMS SAID TOBY GERBER MANAGING DIRECTOR OF JOHNSON & GIBBS CYNTHIA SAVAGE ASSISTANT DIRECTOR OF CAREER SERVICES AT THE SOUTHERN METHODIST UNIVERSITY SCHOOL OF LAW IN DALLAS ESTIMATED THAT SALARIES FOR FIRSTYEAR ASSOCIATES AT LARGE FIRMS IN DALLAS RANGED FROM 58000 TO 63000 SPOKESMEN FOR SEVERAL OF THE DALLAS FIRMS SAID THAT THEIR BEGINNING ASSOCIATES' PAY WAS WITHIN THAT RANGE IT SOUNDS LIKE A PRETTY WIDE RANGE TO ME 5000 SAID CURT FRISBIE A PARTNER AT GARDERE & WYNNE ANOTHER FIRM THAT HEARD FROM THE JUSTICE DEPARTMENT AS FOR SUMMER ASSOCIATES JOHNSON & GIBBS SAID IT PAYS THEM 1100 A WEEK STRASBURGER & PRICE PAYS 1000 A WEEK AND AKIN GUMP STRAUSS HAUER & FELD PAYS 1000 TO 1150 A WEEK DEPENDING ON HOW MUCH LAW SCHOOL THEY'VE COMPLETED ALL THREE FIRMS WERE CONTACTED BY THE GOVERNMENT THE OTHER SUBJECTS OF THE INVESTIGATION ARE HUGHES & LUCE LOCKE PURNELL RAIN HARRELL AND HAYNES & BOONE IT WASN'T IMMEDIATELY CLEAR WHY FIRMS IN DALLAS WERE TARGETED OR WHETHER OTHER FIRMS ARE ALSO BEING INVESTIGATED THE FIRMS RECEIVED THE REQUESTS FROM FEBRUARY TO APRIL BUT NONE HAVE BEEN CONTACTED SINCE COMPLYING WITH THE INITIAL REQUESTS THE DALLAS INQUIRY COMES AT A TIME WHEN OTHER QUESTIONS ARE BEING RAISED ABOUT LAW FIRMS' RECRUITMENT PRACTICES THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION IS INVESTIGATING POSSIBLE AGE DISCRIMINATION BY NEW YORK LAW FIRMS IN THEIR HIRING OF JUNIORLEVEL ASSOCIATES A JUSTICE DEPARTMENT SPOKESMAN IN WASHINGTON DECLINED TO ELABORATE ON THE NUMBER OR LOCATIONS OF THE FIRMS THAT ARE TARGETS WE DO HAVE AN ONGOING INVESTIGATION INTO SALARY PRACTICES AT DALLAS LAW FIRMS THE SPOKESMAN SAID LAW FIRM COMPENSATION EXPERTS SAY IT ISN'T UNUSUAL FOR SUMMER CLERKS' AND FIRSTYEAR ASSOCIATES' PAY TO FALL WITHIN A NARROW RANGE AT LARGE FIRMS IN MAJOR CITIES IT'S JUST LIKE ANY OTHER PROFESSION SAYS PAULA PATTON EXECUTIVE DIRECTOR OF THE NATIONAL ASSOCIATION FOR LAW PLACEMENT IN WASHINGTON A NONPROFIT ORGANIZATION WITH LAW SCHOOL AND LAW FIRM MEMBERS THERE'S JUST KIND OF A STANDARD SHE SAID ANTITRUST EXPERTS SAID SIMILAR PAY ALONE DOESN'T CONSTITUTE AN ANTITRUST VIOLATION UNDER THE SHERMAN ANTITRUST ACT YOU CAN EXPECT PARALLEL PRICING BECAUSE THEY'RE COMPETING WITH EACH OTHER SAID IRVING SCHER A PARTNER AT WEIL GOTSHAL & MANGES IN NEW YORK IF THE GOVERNMENT IS BUILDING A CASE AGAINST THE FIRMS THE EXPERTS SAID IT WILL NEED TO FIND EVIDENCE THAT THE FIRMS COLLUDED TO SET PRICES THROUGH MEETINGS TELEPHONE CALLS OR OTHER COMMUNICATION THE GOVERNMENT HAS TO PROVE SOME KIND OF EFFORT TO ESTABLISH THE SAME LEVEL OF PRICES SAID ROBERT TAYLOR A PARTNER AT PILLSBURY MADISON & SUTRO IN SAN FRANCISCO AND A FORMER CHAIRMAN OF THE AMERICAN BAR ASSOCIATION'S ANTITRUST SECTION THE JUSTICE DEPARTMENT SPOKESMAN SAID AGENCY OFFICIALS COULDN'T RECALL CONDUCTING ANY SIMILAR INVESTIGATIONS IN THE PAST THE FEDERAL TRADE COMMISSION HOWEVER INVESTIGATED AT LEAST THREE CLEVELANDBASED LAW FIRMS FOR SUSPCTED ANTITRUST VIOLATIONS IN RECRUITING AND HIRING IN 1990 THE INQUIRY WAS LATER DROPPED WHEN THE AGENCY DETERMINED THAT THE INFRACTIONS WEREN'T SERIOUS A SPOKESMAN FOR THE FTC IN WASHINGTON WOULDN'T PROVIDE ANY DETAILS CITING THE AGENCY'S POLICY OF NOT CONFIRMING OR DENYING REPORTS ABOUT ITS INVESTIGATIONS GOLDMAN SACHS & CO IS OFF THE HOOK IN A LAWSUIT STEMMING FROM INSIDER TRADING BY IVAN F BOESKY BASED ON INFORMATION ALLEGEDLY LEAKED BY A GOLDMAN SACHS EMPLOYEE US JUDGE MILTON POLLACK IN NEW YORK DISMISSED ALL CLAIMS BY FMC CORP AGAINST THE INVESTMENT BANK IN A SUIT ALLEGING THAT THE INSIDER TRADING INCREASED THE COST OF A 1986 STOCK RECAPITALIZATION BY 225 MILLION GOLDMAN SACHS WAS ADVISING FMC THE ISSUE OF WHETHER AN INVESTMENT BANK CAN BE FOUND LIABLE IF INSIDER TRADING PUSHES UP THE PRICE OF A TRANSACTION HAS BEEN HOTLY CONTESTED BUT UNLIKE OTHER SUCH SUITS WHICH INVOLVED TAKEOVER TRANSACTIONS THE FMC CASE INVOLVED ISSUING STOCK AND CASH TO THE COMPANY'S SHAREHOLDERS BEFORE THE CASE WAS TRANSFERRED TO JUDGE POLLACK A JUDGE IN CHICAGO FOUND THAT EVEN IF MR BOESKY'S TRADING BOOSTED THE STOCK PRICE THERE WERE NO LEGAL DAMAGES SINCE FMC ENDED UP PAYING MORE TO ITS OWN SHAREHOLDERS JUDGE POLLACK TOOK THAT RULING FURTHER FINDING THAT THE INSIDE INFORMATION ACCOUNTED FOR ONLY A LIMITED AMOUNT OF MR BOESKY'S TRADING AND THAT FMC STOCK INCREASED IN VALUE FOR OTHER REASONS JONATHAN M MOSES IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9307020138 930702 MARKETING & MEDIA HOME SHOPPING IS EXPECTED TO GET NOD TODAY FROM FCC TO USE LOCAL CABLE TV BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION IS EXPECTED TO VOTE 21 TODAY TO GIVE OVERTHEAIR HOMESHOPPING STATIONS THE RIGHT TO BE CARRIED ON LOCAL CABLETELEVISION SYSTEMS THE ACTION COMES 10 DAYS AFTER THE COMMISSION REACTING TO PRESSURE FROM LAWMAKERS AND PUBLICINTEREST ACTIVISTS POSTPONED A VOTE ON THE MATTER LAWMAKERS INCLUDING REP JOHN DINGELL D MICH CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE ARGUED THAT STATIONS THAT SHOW COMMERCIAL PROGRAMMING AND LITTLE ELSE SHOULD BE BARRED FROM BROADCASTING FCC CHAIRMAN JAMES QUELLO AND COMMISSIONER ANDREW BARRETT INDICATED YESTERDAY THEY WOULD VOTE TO GIVE THE SHOPPING STATIONS THE SAME RIGHTS UNDER LAST YEAR'S CABLETV LAW AS BROADCASTERS THAT CARRY MORETRADITIONAL PROGRAMMING UNDER THE LAW CABLE SYSTEMS GENERALLY MUST CARRY THE SIGNALS OF LOCAL OVERTHEAIR STATIONS UNLESS THE STATIONS OPT TO NEGOTIATE WITH THE CABLE OPERATOR TO OBTAIN A FEE COMMISSIONER ERVIN DUGGAN WHO SOUGHT THE POSTPONEMENT TO STUDY WHETHER THESE STATIONS SERVE THE PUBLIC INTEREST IS EXPECTED TO DISSENT YESTERDAY COMMISSION MEMBERS WERE CONSIDERING CONDUCTING A FULLBLOWN STUDY OF WHETHER COMMERCIAL PROGRAMMING SUCH AS HOME SHOPPING IS IN THE PUBLIC INTEREST ABOUT 70 TELEVISION STATIONS NATIONWIDE MOSTLY AFFILIATES OF HOME SHOPPING NETWORK INC RUN HOMESHOPPING FARE FULL TIME COMMISSION OFFICIALS SAID THE FULLTIME HOMESHOPPING STATIONS HAVE MET THE FCC'S PUBLICINTEREST STANDARDS FOR NEWS PUBLIC AFFAIRS AND CHILDREN'S PROGRAMMING AND DENYING THEM RIGHTS TO BE CARRIED ON CABLE SYSTEMS WOULD RAISE THORNY ISSUES IF WE DECLARE THEY ARE NOT IN THE PUBLIC INTEREST THERE IS A QUESTION OF WHETHER WE CAN RENEW THEIR LICENSES SAID COMMISSIONER BARRETT WE WOULD ALSO BE GETTING INTO PROGRAM CONTENT AND I AM VERY UNCOMFORTABLE WITH THAT A FINAL DECISION ON THE HOME SHOPPING MATTER IS LIKELY TO END UP ON THE DESK OF REED HUNDT THE WASHINGTON LAWYER PICKED THIS WEEK BY PRESIDENT CLINTON TO BECOME THE NEXT FCC CHAIRMAN THE MATTER IS CERTAIN TO BE CHALLENGED BY PUBLICINTEREST GROUPS AND CABLE OPERATORS AND MR HUNDT WHO MUST WIN SENATE CONFIRMATION IS LIKELY TO BE PRESIDING OVER THE AGENCY WHEN IT RECONSIDERS ITS ACTION 9307020137 930702 WHAT'S NEWS BUSINESS AND FINANCE IBM IS PREPARING TO ANNOUNCE THIS MONTH A MASSIVE NEW CHARGE OF ABOUT 2 BILLION TO PAY FOR SLASHING ITS WORK FORCE BY ABOUT 50000 PEOPLE TWICE AS MANY AS IT HAD PREDICTED THE COMPUTER COMPANY IS EXPECTED TO ANNOUNCE THE BIG CHARGE WITH ITS SECONDQUARTER RESULTS ON JULY 27 GERMANY'S CENTRAL BANK CUT INTEREST RATES FOR THE FOURTH TIME THIS YEAR IN AN EFFORT TO SPUR THE SAGGING ECONOMY URGED BY THE US AND OTHERS TO EASE MONETARY POLICY THE BUNDESBANK CUT THE DISCOUNT RATE TO 675 FROM 725 AND THE CLOSELY WATCHED LOMBARD RATE TO 825 FROM 85 EUROPE HONED ITS OBJECTIONS TO US TRADE POLICIES AND RUSSIAN AID PROPOSALS DAYS BEFORE THE G7 ECONOMIC SUMMIT IN TOKYO POSING NEW CONFLICTS FOR EFFORTS TO COORDINATE GLOBAL RECOVERY MANY US BUSINESSES DON'T EXPECT THEIR MEXICAN EXPANSION PLANS TO BE HURT BY A JUDGE'S RULING DELAYING THE NORTH AMERICAN FREE TRADE PACT BUT SOME WORRY ABOUT AN ECONOMIC DISRUPTION IN MEXICO IT WILL PROBABLY BE OVER A MONTH BEFORE THE US GETS AN APPEALS HEARING ON THE RULING TAMBRANDS DEMOTED CHARLES CHAPMAN PRESIDENT AND CHIEF OPERATING OFFICER AND TWO OTHER KEY EXECUTIVES WERE FORCED OUT AS TAMBRANDS TRIES TO SHORE UP ITS TROUBLED OPERATIONS IN THE WAKE OF LAST MONTH'S OUSTER OF MARTIN EMMETT AS CHIEF EXECUTIVE THE MANUFACTURING SECTOR SHRANK IN JUNE SUGGESTING THAT A SLOW ECONOMIC RECOVERY STILL LIES AHEAD SEPARATELY CONSTRUCTION SPENDING INCREASED 01 IN MAY TO 3864 BILLION GOLD PRICES SURGED TO THEIR HIGHEST LEVEL SINCE THE BEGINNING OF 1991 PROPELLED BY AGGRESSIVE BUYING THAT BEGAN IN EUROPE AUGUST GOLD FUTURES PRICES SOARED 9 TO 38820 AN OUNCE MCDONNELL DOUGLAS TOOK ITS HELICOPTER UNIT OFF THE MARKET SUGGESTING TO SOME ANALYSTS THE AEROSPACE FIRM MAY BE ABLE TO MEET ITS DEBTREDUCTION GOALS WITHOUT MAJOR ASSET SALES AT&T LAUNCHED 1800OPERATOR A RIVAL SERVICE TO MCI'S DISCOUNT COLLECTCALLING SERVICE 1800COLLECT AT&T WHICH HAD KNOCKED MCI'S SERVICE A MONTH AGO SAID ITS NEW SERVICE'S RATES WILL MATCH THOSE OF MCI'S SENATE DEMOCRATIC LEADERS SAY COMING TALKS WITH THE HOUSE MUST PRODUCE SOMETHING CLOSE TO THEIR VERSION OF A DEFICITCUTTING BILL VEXING THE CHIEF SPONSOR OF THE HOUSEPASSED PACKAGE REP DAN ROSTENKOWSKI MANY COMPANIES ARE OPTING TO USE EXCESS CASH TO BUY THEIR OWN SHARES RATHER THAN BUILD NEW PLANTS PHILLIPS PETROLEUM AND ITS PARTNERS PLAN TO SPEND 3 BILLION TO 4 BILLION TO REBUILD A HUGE AGING SERIES OF OIL AND GAS PLATFORMS CRUCIAL TO PETROLEUM PRODUCTION IN NORWAY'S NORTH SEA GM SHUFFLED KEY EXECUTIVES IN ITS NORTH AMERICAN ENGINEERING OPERATIONS AND NAMED FIVE NEW CORPORATE VICE PRESIDENTS AS THE AUTO MAKER'S PRESIDENT JOHN SMITH STEPPED UP EFFORTS TO PUT HIS STAMP ON THE FIRM IBM'S NEW PERSONAL COMPUTER OPERATING SYSTEM IS OFF TO A MODESTLY SUCCESSFUL START BUT ITS PROSPECTS REMAIN CLOUDED BY POTENTIAL CUSTOMERS WAITING FOR MICROSOFT'S WINDOWS NT IBM SAYS IT HAS SOLD 200000 COPIES OF OS2/21 AND UNDERESTIMATED DEMAND LEAVING SOME DISTRIBUTORS SOLD OUT BONDS LEHMAN BROTHERS TREASURY INDEX 527899 OFF 053 COMMODITIES OIL 1845 A BARREL OFF 40 CENTS DOW JONES FUTURES INDEX 12241 UP 146 SPOT INDEX 12163 UP 089 DOLLAR 10745 YEN UP 045 16933 MARKS UP 00102 9307020136 930702 PEPPERAND SALT OR EVEN SOFA SPUD CAUSE AND DEFECT WILL THEN PROCEED TO SPILL IT REFORMED ALCOHOLIC 9307020135 930702 SIX FLAGS PLANS REDEMPTION NEW YORK SIX FLAGS ENTERTAINMENT CORP SAID IT WILL REDEEM ITS 164 MILLION OF 11 3/4 SENIOR NOTES DUE 1999 AND ALL ITS SERIES C 9 PREFERRED STOCK WITH A LIQUIDATION VALUE OF ABOUT 53 MILLION IN ADDITION ITS SF HOLDINGS INC UNIT WILL REDEEM ITS SERIES A 9 PREFERRED WITH A LIQUIDATION VALUE OF ABOUT 11 MILLION SIX FLAGS SAID IT WILL FINANCE THE REDEMPTIONS THROUGH LOANS OF ABOUT 240 MILLION FROM TIME WARNER ENTERTAINMENT CO LP A MAJORITYOWNED UNIT OF TIME WARNER INC WHICH OWNS 50 OF SIX FLAGS' COMMON STOCK THE NOTES WILL BE REDEEMED ON JULY 31 AT 102 OF PRINCIPAL AMOUNT PLUS ACCRUED INTEREST THE SIX FLAGS PREFERRED WILL BE REDEEMED ON JULY 31 AND THE SF HOLDINGS PREFERRED ON JULY 16 BOTH AT 1000 A SHARE PLUS ACCRUED DIVIDENDS SIX FLAGS OPERATES THEME PARKS 9307020134 930702 INTERNATIONAL US TRADE POLICIES DRAW SHARPER FIRE FROM EC NATIONS BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL BONN EUROPE HAS HONED ITS OBJECTIONS TO US TRADE POLICIES AND RUSSIAN AID PROPOSALS AHEAD OF THE WORLD ECONOMIC SUMMIT IN TOKYO POSING NEW CONFLICTS FOR EFFORTS TO COORDINATE GLOBAL RECOVERY EVEN GERMANY LONG WASHINGTON'S INFLUENTIAL ALLY IN EUROPE SHOWS SIGNS OF SHARING EUROPE'S DISAFFECTION WITH US ECONOMIC LEADERSHIP A SENIOR GERMAN OFFICIAL ACCUSED WASHINGTON OF SENDING OUT MIXED SIGNALS ON TRADE POLICIES THOSE MIXED SIGNALS HE SAYS IN TURN BREED PROTECTIONIST SENTIMENTS IN EUROPE THE NEW WORLD ORDER STILL LACKS A PROFILE AND THERE EVEN ARE SIGNS THAT THE WEST IS SPLITTING APART WARNED HORST KOEHLER STATE SECRETARY AT THE GERMAN FINANCE MINISTRY AS CHANCELLOR HELMUT KOHL'S SENIOR ECONOMIC POLICY AIDE OR SHERPA MR KOEHLER IS BONN'S SENIOR NEGOTIATOR ON INTERNATIONAL ECONOMIC ISSUES HE SAID COLD WAR UNITY IN THE WEST RISKS BEING REPLACED BY A GIGANTIC GLOBAL DISTRIBUTION FIGHT NOT ONLY BETWEEN THE INDUSTRIAL AND DEVELOPING WORLDS BUT AMONG INDUSTRIAL COUNTRIES THEMSELVES DISCORD ALSO THREATENS TO BOG DOWN WESTERN EFFORTS TO AID FREEMARKET REFORMS IN THE FORMER SOVIET UNION MR KOEHLER SAID MOST OF THE GROUP OF SEVEN INDUSTRIALIZED NATIONS ARE AGAINST PRESIDENT CLINTON'S RUSSIAN PRIVATIZATION FUND FOR WHICH WASHINGTON FORESEES A 2 BILLION CONTRIBUTION FROM THE G7 INCLUDING 500 MILLION FROM THE US ALONE AND 2 BILLION FROM SUCH INTERNATIONAL FINANCIAL INSTITUTIONS AS THE WORLD BANK MR KOEHLER SAID THAT WHILE GERMANY AGREES WITH THE IDEA BEHIND THE PROJECT ITS SCOPE IS UNREALISTIC JAPAN AND EUROPEAN COUNTRIES TO PLACATE THE US ARE TALKING OF DIVERTING PREVIOUSLY PLEDGED FUNDS TO THE PRIVATIZATION FUND INSTEAD OF COMING UP WITH NEW MONEY AS THE US IS IN A JOINT INTERVIEW WITH THE WALL STREET JOURNAL EUROPE AND THE GERMAN NEWSPAPER HANDELSBLATT MR KOEHLER ALSO SAID BONN FAVORS A STRONG GERMAN MARK AND SUPPORTS THE GERMAN CENTRAL BANK'S ANTIINFLATION STANCE THE BUNDESBANK BOWED TO INTERNATIONAL PRESSURE YESTERDAY BY LOWERING GERMANY'S DISCOUNT AND LOMBARD RATES BUT LOWER GERMAN RATES AREN'T LIKELY TO EASE OTHER DISAGREEMENTS FACING THE G7 HEADS OF STATE AT THEIR SUMMIT IN TOKYO NEXT WEEK THE USEUROPEAN POLICY RIFTS ARE ADDED TO US TRADE DISPUTES WITH JAPAN OVER MARKET ACCESS AT A TIME WHEN POLITICAL TURMOIL IN JAPAN REDUCES PROSPECTS FOR A BREAKTHROUGH AT THE SUMMIT THE G7 MEMBERS ARE THE US JAPAN GERMANY FRANCE ITALY CANADA AND THE UNITED KINGDOM FRANCE THIS WEEK DECLARED THAT US DUTIES IMPOSED ON EUROPEAN STEEL WILL MAKE AGREEMENT IMPOSSIBLE AT PRESUMMIT NEGOTIATIONS ON MARKET ACCESS JULY 6 BETWEEN THE US CANADA JAPAN AND THE EUROPEAN COMMUNITY AGREEMENT ON TARIFF REDUCTIONS AMONG THE WORLD'S FOUR LEADING TRADING POWERS WOULD CLEAR THE WAY FOR A BROADER WORLDTRADE LIBERALIZATION PACT THE CURRENT ROUND OF TALKS THE SOCALLED URUGUAY ROUND IS CONSIDERED A KEY TO REVITALIZING THE WORLD ECONOMY MR KOEHLER SAID THE US WOULD SHARE AT LEAST PART OF THE BLAME IF THE URUGUAY ROUND TALKS FAIL I AM WORRIED BY THE EMERGENCE OF UNILATERAL AND SECTORAL SANCTIONS IN AMERICAN POLICY WHERE WE CONSTANTLY GET MIXED SIGNALS HE SAID THE MIXED SIGNALS HELP THOSE IN EUROPE WHO SAY WE HAVE TO DEFINE OUR OWN INTERESTSAND THAT MEANS A BLOC I AM VERY CONCERNED THAT EUROPE ESPECIALLY CERTAIN COUNTRIES IN EUROPE IS SEEKING A SOLUTION IN A DEFENSIVE STRATEGY OF TRADE BARRIERS TO PROTECT JOBS AND SOCIAL SYSTEMS 9307020133 930702 WHO'S NEWS FORTUNE STEPS DOWN AS PRESIDENT AND CHIEF OF OPERATIONS AT GANTOS GRAND RAPIDS MICH GANTOS INC SAID MICHELE FORTUNE ABRUPTLY RESIGNED AS PRESIDENT AND CHIEF OPERATING OFFICER OF THIS WOMEN'S CLOTHING RETAIL CHAIN A GANTOS SPOKESMAN SAID THE COMPANY HAS NO INTENTIONS OF REPLACING MS FORTUNE THE SPOKESMAN SAID HE COULDN'T COMMENT ON HER SUDDEN DEPARTURE SHE JUST ANNOUNCED HER RESIGNATION WEDNESDAY THE SPOKESMAN SAID I DON'T KNOW WHERE SHE IS L DOUGLAS GANTOS 62 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER ASSUMED MS FORTUNE'S DUTIES MS FORTUNE 44 JOINED GANTOS 15 MONTHS AGO LEAVING HIT OR MISS STORES A DIVISION OF TJX COS AS EXECUTIVE VICE PRESIDENT OF MERCHANDISING AND MARKETING PRIOR TO THAT MS FORTUNE WAS PRESIDENT AND CHIEF OPERATING OFFICER OF ANNTAYLOR STORES MS FORTUNE WAS BROUGHT IN TO HELP REVERSE GANTOS' SLIDING SALES BUT GANTOS BLAMING A WEAK ECONOMY RECENTLY REPORTED THAT FIRSTQUARTER EARNINGS DROPPED 21 TO 112000 FROM 141000 A YEAR AGO SALES FOR THE PERIOD WERE OFF 54 9307020132 930702 KROGER RECALLS CANS OF ITS GRAVY CITING POSSIBILITY OF SPOILAGE CINCINNATI KROGER CO SAID IT VOLUNTARILY TOOK CANS OF ITS PRIVATELABEL CHICKEN TURKEY BEEF AND MUSHROOM GRAVY OFF THE SHELF BECAUSE THE CONTENTS MAY BE SPOILED THE WITHDRAWAL INVOLVES ALL CODES OF 135 OUNCE CANS OF KROGER CHICKEN TURKEY BROWN AND MUSHROOMFLAVORED GRAVY THE PRODUCTS ARE SOLD IN KROGER STORES NATIONWIDE ABOUT 1140 OF KROGER'S 1277 SUPERMARKETS NATIONWIDE EACH CARRY A TOTAL OF ABOUT 72 CANS OF THOSE TYPES OF GRAVIES THE SUSPECT CANS HAVE BEEN ON THE SHELVES SINCE APRIL KROGER LEARNED OF THE PROBLEM TUESDAY AFTER SPOTTING SWOLLEN CANS OF GRAVY AS THEY ROLLED OFF THE LINE AT ITS CINCINNATI PLAN A SWOLLEN CAN MAY CRACK ALLOWING THE CONTENTS TO SPOIL IN THE PAST MONTH THREE CUSTOMERS HAVE CALLED TO COMPLAIN ABOUT THE FLAVOR OR SMELL OF CANS OF THE GRAVY A KROGER SPOKESMAN SAID HE ISN'T AWARE OF ANY COMPLAINTS OF ILLNESS ASSOCIATED WITH THE GRAVY KROGER SAID IT BELIEVES ONLY A SMALL NUMBER OF THE CANS ARE SPOILED IT'S NOT A MAJOR PROBLEM BUT ENOUGH OF A PROBLEM THAT WE OUGHT TO GET IT OFF THE SHELVES THE SPOKESMAN SAID KROGER IS REFUNDING MONEY TO CUSTOMERS WHO RETURN THE CANS 9307020131 930702 LAW JUDGE WHO CAST DOUBT ON NAFTA'S FATE ISN'T A STRANGER TO CONTROVERSIAL ISSUES BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON JUDGE CHARLES RICHEY WAS FRUSTRATING THE PLANS OF BUSINESS AND GOVERNMENT OFFICIALS LONG BEFORE HIS RULING THIS WEEK THROWING THE NORTH AMERICAN FREE TRADE AGREEMENT INTO DOUBT IN 1976 JUDGE RICHEY WHO SITS ON THE US DISTRICT COURT HERE ISSUED AN ORDER IN AN ENVIRONMENTAL CASE AGAINST THE US TUNA FISHING FLEET THE ORDER ESSENTIALLY SHUT DOWN THE INDUSTRY AND CREATED SUCH A FUROR THAT GERALD FORD CALLED FOR THE JUDGE'S IMPEACHMENT DURING THE PRESIDENTIAL CAMPAIGN THAT YEAR BUT THE JUDGE STOOD FIRM AND HIS RULING STOOD UP SAYS JEFFREY LISS A WASHINGTON LAWYER AND FORMER LAW CLERK WHO SAYS HIS OLD BOSS WAS MAINLY AMUSED BY THE IMPEACHMENT TALK CERTAINLY THE STERN WHITEHAIRED FEDERAL JUDGE WHO DECLINED TO BE INTERVIEWED IS KNOWN AROUND THE COURTHOUSE HERE AS A JURIST WHO REVELS IN CONTROVERSY THAT BECAME ALL TOO CLEAR WEDNESDAY TO SUPPORTERS OF NAFTA HE RULED THAT THE CLINTON ADMINISTRATION MUST FILE AN ENVIRONMENTAL IMPACT STATEMENT EVALUATING THE EFFECTS OF THE TRADE ACCORD IF UPHELD ON APPEAL THE REQUIREMENT COULD PROVE TO BE A DEATH SENTENCE FOR THE PACT THE RULING SHOCKED AND CHAGRINED SUPPORTERS OF THE AGREEMENT BUT NOT NECESSARILY CLOSE FOLLOWERS OF THE JUDGE KNOWN AS AN ENGAGING THOUGH UNPREDICTABLE JUDGE WHO IS HARDLY MEDIA SHY HE ENJOYS THE EXERCISE OF POWER AND HE DOESN'T MIND ATTRACTING A LOT OF ATTENTION ANOTHER JUDGE SAYS OF THE 69YEAROLD NIXON APPOINTEE HE LIKES TO THROW HIS WEIGHT AROUND A LITTLE HE IS NOT WHAT YOU WOULD CALL A PASSIVE JUDGE NO ONE KNOWS THAT BETTER THAN THE MAN WHO APPOINTED HIM IN 1975 JUDGE RICHEY RULED THAT PAPERS AND TAPES GENERATED BY RICHARD NIXON DURING HIS TERM BELONGED TO THE FEDERAL GOVERNMENT REBUFFING AN ATTEMPT BY THE FORMER PRESIDENT TO TAKE THE MATERIALS TO CALIFORNIA OR DESTROY THEM I THINK NIXON THOUGHT HE WAS GOING TO BE A KNEEJERK REPUBLICAN SAYS DENNIS DAVISON A WASHINGTON LAWYER AND ANOTHER FORMER CLERK BUT HE TURNED OUT TO BE A VERY MODERATE JUDGE WHO RULED VERY INDEPENDENTLY ON WHAT HE THOUGHT WAS RIGHT AND THE JUDGE HAS BASHED DEMOCRATIC ADMINISTRATIONS TOO THIS SPRING FOR INSTANCE HE HELD THE CLINTON WHITE HOUSE IN CONTEMPT OF COURT FOR FAILING TO HEED HIS ORDERS TO PRESERVE SOME BACKUP COMPUTER TAPES DATING TO THE REAGAN YEARS THE JUDGE ACCUSED THE ADMINISTRATION OF DILLYDALLYING THE DECISION WAS THE FIRST OF TWO VICTORIES THIS YEAR THE JUDGE HANDED PUBLIC CITIZEN THE RALPH NADERSUPPORTED PUBLIC INTEREST GROUP WHICH WAS ONE OF THE PLAINTIFFS IN THE NAFTA CASE SOMETIMES THE JUDGE'S STRONG WORDS GET HIM IN HOT WATER WITH APPELLATE COURTS EVEN WHEN HE IS RIGHT ON THE LAW IN 1983 HE HANDED AMERICAN TELEPHONE & TELEGRAPH CO A RARE VICTORY IN A PRIVATE ANTITRUST SUIT THE FEDERAL APPEALS COURT IN WASHINGTON FOUND THAT THE JUDGE'S HANDLING OF THE CASE RISKED GIVING AN APPEARANCE THAT HE BASED HIS DECISION ON PERSONAL OPINIONS RATHER THAN THE LAW ALTHOUGH IT DIDN'T REVERSE HIM OTHERS CONSIDER THE JUDGE AN INNOVATOR IN LABOR AND CIVIL RIGHTS CASES HE WAS ONE OF THE FIRST JUDGES TO HOLD THAT SEXUAL ADVANCES CONSTITUTE SEX DISCRIMINATION UNDER FEDERAL CIVIL RIGHTS LAWS AND IN 1990 HE OVERSAW THE SETTLEMENT OF A DECADELONG DISCRIMINATION LAWSUIT AGAINST THE DISTRICT OF COLUMBIA FIRE DEPARTMENT I THINK HE IS IN THE BEST SENSE UNPREDICTABLE SAYS STEPHEN SALTZBURG A GEORGE WASHINGTON UNIVERSITY LAW PROFESSOR WHO HELPED MEDIATE THE FIREDEPARTMENT CASE HE HAS A BURNING DESIRE TO SEE THAT JUSTICE IS DONE AND THAT HE CALLS THE SHOTS FAIRLY HE CALLS THEM AS HE SEES THEM I THINK HE IS A VERY COURAGEOUS JUDGE SENIOR CLINTON ADMINISTRATION OFFICIALS ARE WELL AWARE OF JUDGE RICHEY'S INDEPENDENT STREAK LATE WEDNESDAY AFTERNOON THEY HUDDLED TO FIGURE OUT WHAT TO DO ABOUT THE NAFTA RULING ONE OFFICIAL NOTING THAT THE DECISION REFERRED MOSTLY TO THE US TRADE REPRESENTATIVE'S ACTIONS NOT THE PRESIDENT'S SAYS MR CLINTON COULD SIMPLY DELIVER NAFTA TO CONGRESS WITHOUT DOING AN ENVIRONMENTAL IMPACT STATEMENT THAT STRATEGY WORRIED ONE ASSISTANT US ATTORNEY GENERAL WHO WOULD BE RESPONSIBLE FOR ARGUING THE GOVERNMENT'S CASE YOU DO THAT AND HE'LL THROW ME IN JAIL FOR CONTEMPT HE SAYS BOB DAVIS CONTRIBUTED TO THIS ARTICLE 9307020130 930702 INLAND STEEL UNIT REDEMPTION CHICAGO INLAND STEEL CO A UNIT OF INLAND STEEL INDUSTRIES INC SAID THE CITY OF EAST CHICAGO IND CALLED FOR THE REDEMPTION OF 40 MILLION PRINCIPAL AMOUNT OF BONDS RELATED TO INLAND STEEL CO'S POLLUTION CONTROL PROJECTS NOS 7 AND 8 THE COMPANY SAID THAT ON JULY 26 IT WILL REDEEM THE FOLLOWING BONDS 25 MILLION OF SERIES 1980 B 9 3/4 DUE OCT 1 2000 5 MILLION OF SERIES 1980 B 10 BONDS DUE OCT 1 2010 AND 10 MILLION SERIES 1982 A 10 BONDS DUE DEC 1 2012 THE REDEMPTIONS WILL BE FUNDED BY PROCEEDS FROM THE RECENTLY COMPLETED SALE OF 40 MILLION PRINCIPAL AMOUNT OF CITY OF EAST CHICAGO POLLUTION CONTROL PROJECT NO 10 SERIES 1993 680 BONDS DUE JUNE 1 2013 AND FROM COMPANY FUNDS 9307020129 930702 POLITICS & POLICY JOURNAL'S PANEL OF POLITICAL EXPERTS SEES CLINTON IN DEEP HOLE AND FACING AN UNFORGIVING PUBLIC BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN JUST SIX MONTHS PRESIDENT CLINTON HAS DUG HIMSELF INTO SUCH A DEEP HOLE IT WILL TAKE HIM A YEAR OR MORE TO CLIMB OUT AND THAT'S IF HE'S LUCKY SAY MEMBERS OF THE WALL STREET JOURNAL'S PANEL OF POLITICAL EXPERTS THIS IS SOMETHING NEW FOR ALL OF US NOTES GOP THEORETICIAN KEVIN PHILLIPS NO PRESIDENT HAS GOTTEN OFF TO SUCH A BAD START THE CENTRAL PROBLEM IS THAT PEOPLE ARE COMING TO THE CONCLUSION THAT THEY DON'T LIKE HIM SAYS REPUBLICAN STRATEGIST JOHN SEARS THE DEMOCRATS ON THE PANEL ARE JUST AS UNFORGIVING THE PEOPLE HAVE COME TO A PRELIMINARY JUDGMENT THAT BILL CLINTON LACKS NOT JUST THE COURAGE OF HIS CONVICTIONS BUT LACKS CONVICTION ALTOGETHER SAYS DEMOCRATIC STRATEGIST GREG SCHNEIDERS PEOPLE DON'T TRUST HIM SAYS THE PANEL'S OTHER DEMOCRAT STRATEGIST ALAN BARON HE COMES INTO OFFICE SAYING HE'S A POPULIST AND THE FIRST THING HE DOES IS SUPPORT GAY RIGHTS EVEN LAUNCHING CRUISE MISSILES AGAINST BAGHDAD IS SUSPECT THREE OF THE FOUR PANELISTS SAY IT WASN'T MUCH OF A RESPONSE TO EVIDENCE THAT SADDAM HUSSEIN TRIED TO ASSASSINATE FORMER PRESIDENT BUSH SAYS MR PHILLIPS IT BEGINS TO LOOK AS THOUGH MR CLINTON DID IT TO GET SOME POLITICAL BENEFIT OUT OF IT SAYS MR SEARS NOBODY WAS OUT THERE CALLING FOR IT ONLY MR SCHNEIDERS RAISES THE POINT THAT MR CLINTON MAY HAVE LAUNCHED THE CRUISE MISSILES BECAUSE HE THOUGHT IT WAS THE RIGHT THING TO DO I DON'T THINK IT IS LEGITIMATE TO ASSUME IT WAS ENTIRELY POLITICALLY MOTIVATED HE SAYS I THINK A LOT OF PEOPLE AGREE WITH HIM THAT SOMETHING HAS TO BE DONE WHEN A FOREIGN STATE ATTEMPTS TO ASSASSINATE A FORMER PRESIDENT WHAT HE DID STRIKES ME AS A MORE OR LESS APPROPRIATE RESPONSE THE AMERICAN PEOPLE THE PANELISTS SUGGEST ARE BEGINNING TO SENSE THAT THEY HAVE ON THEIR HANDS ANOTHER GEORGE BUSH THE VERY TYPE OF FELLOW THEY WENT TO THE POLLS TO DEFEAT IN 1992 WE'VE SEEN THIS BEFORE SAYS MR PHILLIPS IF WE WANTED A SECONDRATE YALIE WHO LIED ABOUT TAXES TO COVER UP MISMANAGEMENT OF THE ECONOMY WE HAD ONE ALREADY MR BUSH WAS AN UNDERGRADUATE AT YALE MR CLINTON EARNED HIS LAW DEGREE THERE WHAT MAKES IT EVEN WORSE MR PHILLIPS SAYS IS THAT CLINTON TOOK OFFICE WITH MORE OF THESE MORAL AND TRUTHFULNESS ISSUES HANGING OVER HIS HEAD THAN EARLIER PRESIDENTS THOSE ISSUES DIDN'T UNDERCUT HIM ENOUGH IN 1992 BECAUSE PEOPLE WANTED TO GET RID OF BUSH SO MUCH THERE'S MORE IN ADDITION TO THOSE ISSUES HE CAME IN LACKING WHAT I WOULD THINK OF AS A STRONG IDEOLOGICAL OR GEOPOLITICAL BASE THIS GUY DOESN'T HAVE ANYTHING AND HIS HOME REGION THE SOUTH IS HIS WEAKEST AREA SO WHAT CAN THIS POOR BENIGHTED BILL CLINTON DO THREE POSSIBILITIES SAYS MR SCHNEIDERS CONVINCE PEOPLE HE'S HANDLING THE JOB EFFECTIVELY EVEN IF THERE ARE NO IMMEDIATE TANGIBLE RESULTS SO FAR THAT HAS NOT OCCURRED SHOW TANGIBLE RESULTS IN THE LONG RUN BUT SO FAR THAT HASN'T HAPPENED TO A DEGREE THAT WOULD HELP HIM OR SHOW THAT HE IS FIGHTING FOR THE SAME VALUES AND PRINCIPLES AND BELIEFS AS THE AMERICAN PEOPLE HE'S GOT THREE OPPORTUNITIES SO FAR HE'S GOT THREE STRIKES MAYBE MR SCHNEIDERS BELIEVES MR CLINTON OUGHT TO TAKE SOME TIME OFF AND FIGURE OUT WHAT ARE THE TWO OR THREE MAIN THINGS HE WANTS TO DO AND THEN FOCUS ON THOSE BUT IT'S STILL A ONE OR TWOYEAR PROCESS TO DIG YOURSELF OUT OF THE HOLE MR SCHNEIDERS SENSES TWO QUICK SMALLSCALE FIXES FIRST THE WHITE HOUSE SHOULD STOP POINTING OUT THAT PEOPLE CRITICIZED RONALD REAGAN AND ABRAHAM LINCOLN AND HARRY TRUMAN TOO REMEMBER HE SAYS THEY ALSO CRITICIZED HERBERT HOOVER SECOND HE SAYS STOP THINKING THERE'S NO PROBLEM WITH THE STORY THAT THE PROBLEM IS YOU'RE NOT GETTING THE STORY OUT THE CLINTON PEOPLE NEED TO CHANGE WHAT THE CONTENT OF THE STORY IS BE PATIENT ADDS MR SEARS THE ONLY WAY YOU GET OUT OF THIS TROUBLE IS IN THE LONG HAUL YOU'VE GOT TO SIT THERE AND TAKE LOW POLL FIGURES FOR MONTHS MR BARON WORRIES THAT MOST AMERICANS AND SOME MEMBERS OF THE PANEL EXPECT TOO MUCH OF PRESIDENT CLINTON THE PROBLEMS FACING THE COUNTRY HE SAYS ARE SUCH THAT THEY DON'T LEND THEMSELVES TO PROGRAMMATIC SOLUTIONS AND THESE ARE TIMES HE SAYS WHEN IT IS DIFFICULT FOR ANY LEADER TO FORGE A RELATIONSHIP WITH THE VOTERS THEY DON'T HAVE THAT WITH CLINTON HE SAYS I'M NOT SURE THEY'D HAVE THAT WITH ANYONE ELSE IT IS MR SEARS AGREES A DIFFICULT TIME TO BE A NATIONAL LEADER PRESIDENTS REFLECT THE COUNTRY THEY GOVERN HE SAYS AND THERE'S NOT A LOT OF PRINCIPLE OUT THERE IN OUR SOCIETY HE SAYS HE DOUBTS ANY LEADER OF THE GROUP OF SEVEN INDUSTRIALIZED NATIONS WHO MEET IN TOKYO NEXT WEEK COULD GET REELECTED AS THINGS STAND TODAY IF MR CLINTON IS EMERGING AS A LOSER WHO ARE THE WINNERS FOR THE MOMENT THE PANELISTS AGREE ROSS PEROT IT'S UNBELIEVABLE SAYS MR SCHNEIDERS YOU WOULD THINK THAT AS CLINTON GOES DOWN THE REPUBLICANS WOULD GO UP BUT THAT'S NOT IT NOW THE REPUBLICANS HAVE THIS PROBLEM THAT YOU CAN DRIVE CLINTON ALL THE WAY INTO THE GROUND AND MAYBE NOT BENEFIT FROM IT AT ALL OF THE FOUR PANELISTS ONLY MR SCHNEIDERS SEEMS CONVINCED THAT MR PEROT WANTS TO BE PRESIDENT I THINK HE'D RUN WHATEVER WAY HE THOUGHT WOULD BE MOST ADVANTAGEOUS AND I DON'T THINK IT'S CLEAR YET WHICH WAY THAT IS I DON'T THINK HE'D RUN AS A REPUBLICAN SAYS MR BARON HE'D LOSE CREDIBILITY WITH A LOT OF HIS OWN SUPPORTERS WHAT HE WANTS THE PANELISTS AGREE IS POWER AND SOMETIMES MR SEARS SAYS YOU'RE A LOT MORE POWERFUL IF YOU CONTROL THE PRESIDENT THAN IF YOU ARE THE PRESIDENT BUT THERE'S A POSSIBILITY THAT MR PEROT AND THE REPUBLICANS COULD FORM SOME SORT OF AN ALLIANCE WHAT MR PHILLIPS CALLS A HYBRID COALITION THAT COULD BE USED TO DEFEAT DEMOCRATIC CANDIDATES AT ALL LEVELS IN 1994 THE PANELISTS AGREE DEMOCRATS FACE THE POTENTIAL OF SERIOUS LOSSES IN CONGRESS MR PEROT COULD PLAY A ROLE IN MOST PARTS OF THE COUNTRY BY SUPPORTING REPUBLICAN CHALLENGERS BUT REPUBLICANS NEED TO BE CAREFUL THAT THEY AREN'T SWALLOWED BY WHAT TURNS TO BE A NEW PEROTLED THIRD PARTY MR SEARS CAUTIONS THAT MR PEROT STANDS A GOOD CHANCE THAT HE'LL BURN HIMSELF OUT IN THE NEXT THREE YEARS HE THINKS POLITICIANS DEMOCRATS AND REPUBLICANS ARE BEHAVING TOO GINGERLY TOWARD MR PEROT THAT'S NOT THE WAY TO HANDLE HIM MR SEARS LOOKS TO THE REPUBLICAN PARTY FOR LEADERS TO MEET THE CHALLENGE BUT NEITHER HE NOR THE OTHER PANELISTS SEE MUCH HOPE NOW MR PHILLIPS EXPRESSES A LACK OF ENTHUSIASM FOR FORMER HOUSING AND URBAN DEVELOPMENT SECRETARY JACK KEMP BOB DOLE THE PANELISTS SAY IS DOING WHAT HE DOES BEST LEADING THE GOP OPPOSITION IN THE SENATE AND THEN SAYS MR PHILLIPS THERE ARE THESE OTHER EXBUSHIES DICK CHENEY LAMAR ALEXANDER LYNN MARTIN WHAT DO THESE PEOPLE BRING TO THE SPICE TABLE IT'S SORT OF LIKE WHAT DEMAND WAS THERE FOR HERBERT HOOVER'S CABINET 9307020128 930702 LEISURE & ARTS ON SPORTS A LIFE AT THE OLD BALL GAME BY FREDERICK C KLEIN CHICAGO HARRY CARAY HAS LED CHICAGO BASEBALL CROWDS IN THE SINGING OF TAKE ME OUT TO THE BALL GAME MAYBE 1700 TIMES IN THE PAST 22 YEARS BUT HE HAS YET TO GET THE WORDS RIGHT TAKE ME OUT TO THE BALL GAME HE BELLOWS TAKE ME OUT TO THE CROWD HARRY I TELL HIM IT'S SUPPOSED TO BE TAKE ME OUT WITH THE CROWD IS THAT RIGHT HE ASKS WELL I SING IT THE WAY I LEARNED IT YOU DON'T EXPECT ME TO CHANGE NOW DO YOU NOBODY EXPECTS HARRY TO CHANGE FEW WANT HIM TO WHEN HARRY'S CALLING A GAME NO ONE NEED ASK WHO'S AT THE MIKE AT A TIME WHEN BLAND IS THE DOMINANT TONE OF BASEBALL BROADCASTERS HIS FAMILIAR RASP IS ESPECIALLY WELCOME BASEBALL WITHOUT HARRY IS LIKE A HOT DOG WITHOUT MUSTARD THIS IS HIS 49TH SEASON DOING MAJOR LEAGUE GAMES MAKE THAT THE 49TH CONSECUTIVE SEASON HE CORRECTS I'VE NEVER BEEN OUT OF WORK HE SPENT 25 YEARS IN HIS NATIVE ST LOUIS DOING THE CARDINALS THEN A YEAR IN OAKLAND WORKING FOR CHARLIE FINLEY HE'S BEEN IN CHICAGO SINCE 1971 FIRST WITH THE WHITE SOX AND SINCE 1982 WITH THE CUBS ON WGN RADIO AND TELEVISION WHICH VIA CABLE REACHES MOST OF THE US FOR ALMOST ALL OF THOSE YEARS HE'S BEEN BETTER THAN THE TEAMS HE'S COVERED AND USUALLY BIGGER AS WELL AN ENTIRE GENERATION OF CHICAGOANS HAS GROWN UP THINKING HEY HARRY IS ONE WORD IT'S CHANTED SO OFTEN WHEN HE'S IN VIEW HE HAS ACHIEVED THAT PINNACLE OF CHICAGO SPORTS CELEBRITY A RESTAURANT THAT CARRIES HIS NAME TO GET A RESERVATION YOU DIAL 1312HOLYCOW AFTER HARRY'S SIGNATURE EXPRESSION MY PLACE HAS OUTLASTED DITKA'S NAMED FOR THE NOWEX COACH OF THE FOOTBALL CHICAGO BEARS HARRY POINTS OUT WITH EVIDENT SATISFACTION HARRY'S AGE IS A MATTER OF MYSTERY MOST OF IT SELFCREATED DAD DROPS FOUR YEARS EVERY TIME HE CHANGES JOBS SAYS HIS SON SKIP HIMSELF A BASEBALL BROADCASTER OF CONSIDERABLE REPUTE SKIP SAYS HARRY IS 51 YEARS OLD WHICH OUGHTA GIVE YOU SOME IDEA HOW OLD I AM BUT THAT'S AS FAR AS HE'LL GO THE YEARS HAVE NOT BEEN UNIFORMLY KIND TO HARRY HE SUFFERED MULTIPLE INJURIES WHEN HIT BY A CAR IN 1968 AND A STROKE IN 1987 THE LATTER TOOK A BIT OF THE EDGE OFF HIS DICTION BUT THEN HE NEVER WAS MISTAKEN FOR ALISTAIR COOKE HARRY SAYS HE'S NEVER SERIOUSLY CONSIDERED RETIREMENT DEATH YES BUT RETIREMENT NO THE STROKE SUFFERED WHILE HE WAS WINTERING IN PALM SPRINGS CALIF KNOCKED ME PRETTY FLAT HE SAYS I COULDN'T MOVE MY RIGHT ARM OR LEG AND I WAS SPEAKING INCOHERENTLY EVEN THOUGH I THOUGHT I WAS MAKING PERFECT SENSE I THOUGHT IT WAS THE END AND THAT WAS OK WITH ME BECAUSE I DIDN'T WANT TO LIVE LIKE THAT BUT BOX AFTER BOX OF LETTERS CAME IN WE STOPPED COUNTING AT 75000 SOMEBODY MUST HAVE BEEN PAYING ATTENTION BECAUSE I STARTED GETTING BETTER AS SOON AS I COULD WALK I WENT TO A SPEECH THERAPIST SECOND SESSION SHE TOLD ME TO GO HOME THAT I DIDN'T NEED HER ANY MORE I WAS BACK AT WORK IN MAY THOSE WERE THE ONLY GAMES I MISSED IN ALL THE TIME I'VE BEEN BROADCASTING AND I DON'T PLAN ON MISSING ANY MORE WHAT WOULD I DO IF I RETIRED WATCH A BALL GAME ON TV OR PLAY CARDS PLAYING CARDS ALL WINTER IS ENOUGH AND I LIKE BASEBALL BETTER AT THE BALL PARK HARRY BORN HARRY CARABINA TALKED HIS WAY INTO HIS FIRST RADIO JOB AFTER GETTING THE ATTENTION OF THE MANAGER OF STATION KMOX IN ST LOUIS BY SENDING A LETTER MARKED PERSONAL TO THE MAN'S HOME HIS PITCH THEN WAS THAT HE WANTED TO MAKE BASEBALL SOUND AS EXCITING TO OTHER PEOPLE AS IT SEEMED TO HIM THAT'S STILL WHAT HE WANTS TO DO MY APPROACH HAS ALWAYS BEEN THE SAME HE SAYS I'VE HEARD IT SAID THAT I'M A HOMER' WHICH IMPLIES I'M SOME KIND OF SHILL FOR THE CLUB I WORK FOR NOTHING COULD BE FURTHER FROM THE TRUTH I'M A FAN WHICH MEANS I'M ECSTATIC WHEN MY TEAM IS DOING WELL AND DISGUSTED WHEN IT'S DOING BAD I DON'T HIDE MY FEELINGS EITHER WAY IT'S NO ACT IT'S ME AND THE LISTENERS RESPOND TO IT WE'RE TALKING IN THE CUBS DUGOUT AT WRIGLEY FIELD PRIOR TO A RECENT CUBSCARDINALS GAME LEE SMITH THE CARDS' VETERAN RELIEF ACE WHO'S A FORMER CUB COMES BY TO CHAT WITH HARRY AND SEE ABOUT A DINNER RESERVATION FOR THAT EVENING WHEN HE LEAVES HARRY SHAKES HIS HEAD THE CUBS TRADED THAT GUY IN 1987 FOR TWO NOTHINGS BECAUSE THE PEOPLE RUNNING THE TEAM THEN DIDN'T LIKE HIS DISPOSITION HE SAYS IT'S NO WONDER THEY HAVEN'T WON A PENNANT SINCE 1945 HE WILL MAKE THAT SAME POINT LATER ON HIS PREGAME SHOW AND AGAIN DURING HIS GAME BROADCAST HE ALSO WILL SECONDGUESS CUB ONFIELD STRATEGY HOW COULD THEY WALK GILKEY TO GET TO OZZIE SMITH AND WHEN HARRY CALLS A CUB HITTER'S POPUP IN A CRUCIAL SITUATION HEEEEEE POPPED IT UP NO ONE CAN DOUBT HIS EXASPERATION YOU CAN'T TELL A FAN SOMETHING IS BETTER THAN IT IS SO WHY TRY AND LOSE YOUR CREDIBILITY HE SAYS BY WAY OF EXPLANATION THAT HARRY'S CREDIBILITY IS JUST FINE IS ATTESTED EVERY TIME HE ARISES IN HIS WRIGLEY FIELD BOOTH BEFORE THE HOME HALF OF THE SEVENTH INNING TO LEAD THE CROWD IN TAKE ME OUT TO THE BALL GAME NO MATTER WHAT THE SCORE HEADS TURN EYES LIGHT UP AND VOICES RING OUT HE'S SUCH A HIT THAT WHEN THE CUBS VISIT OTHER NATIONAL LEAGUE TEAMS HAVE ENLISTED HIM FOR THE SERVICE WANNA KNOW HOW THAT GOT STARTED CARAY SAYS THE FIRST YEAR I CAME TO CHICAGO TO WORK FOR THE WHITE SOX BILL VEECK WHO OWNED THE TEAM NOTICED I'D SING TO MYSELF WHILE THE ORGANIST PLAYED THE SONG ONE DAY WITHOUT MY KNOWING HE FIXED IT SO A MICROPHONE WAS LIVE IN THE BOOTH WHILE SHE PLAYED MY VOICE WENT BOOMING OUT AND JUST ABOUT ALL OF THE 8000 OR 10000 PEOPLE WHO WERE THERE JOINED IN EVERYBODY LIKED IT SO WE KEPT ON DOING IT VEECK SAID THE REASON PEOPLE LIKE TO SING WITH ME IS MY SINGING VOICE HE SAID IT WAS SO LOUSY NO ONE COULD POSSIBLY BE INTIMIDATED 9307020126 930702 US FIRMS UNDAUNTED BY NAFTA RULING MEXICO MAY ABIDE BY TERMS ACCORD OR NO BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY THE NORTH AMERICAN FREE TRADE AGREEMENT HAS BEEN TRANSFORMED FROM PRESIDENT CARLOS SALINAS DE GORTARI'S CROWNING ACHIEVEMENT INTO A MILLSTONE AROUND HIS NECK TO KEEP THE TRADE ACCORD'S TROUBLES FROM SINKING HIM AND HIS COUNTRY THE MEXICAN PRESIDENT MUST QUICKLY CONVINCE INVESTORS THAT HIS FREEMARKET ECONOMIC PROGRAM WILL CONTINUE EVEN IF NAFTA DOESN'T SURVIVE EVERYTHING IN MEXICO HAS TURNED TOPSYTURVY SINCE WEDNESDAY'S US FEDERAL COURT RULING THAT THE CLINTON ADMINISTRATION MUST PREPARE AN EXHAUSTIVE ENVIRONMENTALIMPACT STATEMENT BEFORE SUBMITTING THE TRADE ACCORD TO CONGRESS THE DECISION COULD DELAY IMPLEMENTATION OF THE TRADE PACT WITH THE US AND CANADA WELL BEYOND THE JAN 1 1994 TARGET DATE AND GIVE THE AGREEMENT'S MANY US OPPONENTS TIME TO CLOSE IN FOR THE KILL SINCE MR SALINAS BROACHED THE IDEA OF THE TRADE PACT IN 1990 THE MEXICAN GOVERNMENT HAS PROMOTED NAFTA AGGRESSIVELY AS THE LAST ACT THAT WOULD GUARANTEE CONTINUITY OF THE MARKETORIENTED POLICIES THE COUNTRY HAS BEEN PURSUING SINCE THE MID1980S NAFTA WAS SUCH AN EFFECTIVE MARKETING TOOL THAT MEXICO HAS ATTRACTED MORE FOREIGN INVESTMENT IN THE PAST THREE YEARS THAN IT HAD IN THE PREVIOUS 20 NOW THE TRICK FOR MR SALINAS WILL BE TO KEEP THOSE DOLLARS IN MEXICO EVEN IF NAFTA FIZZLES THE ONLY ANSWER IS TO PRETEND THAT NAFTA PASSED AND ACT ACCORDINGLY SAYS VICTOR ALMEIDA CHIEF EXECUTIVE OFFICER OF INTERCERAMICA SA MEXICO'S LARGEST CERAMICTILE MAKER THAT IS TO UNILATERALLY MAKE THE KIND OF LIBERALIZATIONS IN TRADE AND INVESTMENT LAWS THAT WERE PROVIDED FOR IN NAFTA WE HAVE TO BEGIN SELLING MEXICO NOT NAFTA MANY ANALYSTS THINK THAT'S PRECISELY WHAT MR SALINAS WILL DO A LOT IS RIDING ON THIS SALES JOB MR SALINAS'S SUCCESS IN BUCKING UP INVESTORS WILL DETERMINE WHETHER MEXICO CAN MAINTAIN A STABLE PESO THE ANCHOR OF MEXICO'S ECONOMIC RECOVERY PROGRAM AND A KEY TO HIS POLITICAL POPULARITY ALSO AT STAKE IS THE OUTCOME OF NEXT SUMMER'S PRESIDENTIAL ELECTION IN WHICH MR SALINAS'S RULING PARTY WILL COMPETE AGAINST A LEFTIST OPPOSITION THAT MIGHT APPEAR TO BE VINDICATED FOR HAVING OPPOSED NAFTA MAKING MR SALINAS'S SALES JOB EVEN MORE CHALLENGING ARE THE CUSTOMERS HE'LL BE DIRECTING IT TOWARD US INVESTORS WHO KNOW RELATIVELY LITTLE OF MEXICO THEY ARE PEOPLE SAYS ONE MEXICAN COLUMNIST WHO OWN STOCKS THEY CAN'T PRONOUNCE PROPERLY LET ALONE ANALYZE INTELLIGENTLY YET AT A TIME WHEN MEXICO IS STARVED FOR CAPITAL TO FUND A TOWERING TRADE DEFICIT THESE NOVICE INVESTORS HAVE TREMENDOUS SWAY FOREIGNERS NOW HOLD ABOUT HALF OF MEXICO'S SHORTTERM GOVERNMENT DEBT AND A FIFTH OF ITS EQUITIES THE MEXICAN STOCK MARKET'S ABRUPT 2 DROP WEDNESDAY FOLLOWING THE COURT DECISION ILLUSTRATED THESE INVESTORS' PENCHANT FOR PANIC BUT THE MARKET STABILIZED YESTERDAY ENDING SLIGHTLY HIGHER BOTH SALOMON BROTHERS INC AND GOLDMAN SACHS & CO PUT OUT REPORTS THAT SAID THE JUDGE'S RULING MIGHT NOT BE AS SERIOUS A THREAT TO THE TRADE ACCORD AS THE MARKET ORIGINALLY BELIEVED AND EARLY INDICATIONS ARE THAT MANY AMERICAN COMPANIES PLAN TO PROCEED WITH PLANS TO EXPAND IN MEXICO NEVERTHELESS MEXICO WILL NEED TO PUT FORWARD AN ECONOMIC PROGRAM THAT WOULD BE VIABLE EVEN WITHOUT NAFTA DOMESTIC POLITICS HAS A LOT TO DO WITH MR SALINAS'S RELUCTANCE SO FAR TO PLAY DOWN NAFTA'S IMPORTANCE THE GOVERNMENT HAS PORTRAYED THE TRADE AGREEMENT AS MEXICO'S TICKET TO THE FIRST WORLD AND PLENTY OF MEXICANS ARE EAGER TO MAKE THE TRIP IN THE MEXICO CITY METRO RED WHITE AND BLUE PLACARDS URGE TEENAGERS TO ENROLL IN STENOGRAPHY AND COMPUTER CLASSES TO WIN JOBS WITH US COMPANIES NEWSPAPERS ADVERTISE SEMINARS IN ENGLISH ON THE SEVEN HABITS OF HIGHLY SUCCESSFUL PEOPLE EVERYONE IN MEXICO IS WAITING FOR THE AMERICANS TO COME WITH THE COMPLETION OF NAFTA SAYS DIONISIO SANCHEZ CARBAJAL AN EXECUTIVE AT GRUPO SARE SA A DEVELOPER STARTING A 350 MILLION BUILDING PROGRAM IN RETROSPECT IT SEEMS IRONIC THAT WHEN PRESIDENT SALINAS STARTED NAFTA NEGOTIATIONS IN FEBRUARY 1990 IT WAS EXPECTED THAT THE STRONGEST OPPOSITION WOULD COME FROM SOUTH OF THE RIO GRANDE NOT NORTH OF IT MEXICO HAD LONG DISPLAYED A SIMMERING RESENTMENT TOWARD THE COLOSSUS TO THE NORTH WHICH TOOK HALF OF ITS TERRITORY DURING THE MEXICANAMERICAN WAR MR SALINAS HOWEVER HAD NO CHOICE BUT TO PROPOSE THE TRADE PACT AFTER OTHER MEASURES FAILED TO EXTRICATE MEXICO FROM A DECADE OF DEBTINDUCED STAGNATION IF THE ENTHUSIASM WITH WHICH MEXICANS HAVE EMBRACED NAFTA WAS SURPRISING THE INTENSITY WITH WHICH MANY AMERICANS HAVE REJECTED IT MIGHT HAVE BEEN EVEN MORE SO NAFTA HAS FACED STOUT OPPOSITION IN THE US FROM LABOR UNIONS ENVIRONMENTALISTS AND CONSUMER ADVOCATES THEIR WORK CULMINATED IN THIS WEEK'S VICTORY IN AN UNHERALDED LAWSUIT EVEN BEFORE THE RULING THE MEXICAN GOVERNMENT HAD BEEN CONCERNED ABOUT THE NATION'S CONTINUED CAPACITY TO ATTRACT THE CAPITAL NEEDED TO FUND ITS WIDENING TRADE DEFICIT WHICH SOARED EIGHTFOLD IN 1991 AND MORE THAN DOUBLED IN 1992 IN THE PAST YEAR MEXICAN AUTHORITIES HAVE PUSHED UP REAL INTEREST RATES ON GOVERNMENT DEBT INSTRUMENTS TO SOME OF THE HIGHEST LEVELS IN THE WORLD THAT POLICY WHILE STRANGLING THE ECONOMY HAS SLOWED IMPORT GROWTH AND ATTRACTED HARD CURRENCY IMPORTS GREW ONLY 8 IN THE FIRST FOUR MONTHS OF 1993 COMPARED WITH GROWTH OF MORE THAN 25 A YEAR EARLIER MEANWHILE MEXICO'S ESTIMATED INTERNATIONAL RESERVES HAVE INCREASED TO BETWEEN 22 BILLION AND 24 BILLION ENOUGH TO FUND ALMOST A YEAR'S CURRENTACCOUNT DEFICIT MEXICO HAS BUILT THIS WAR CHEST WITH ONE GOAL IN MIND AVOIDING AT ALL COSTS A DEVALUATION OF THE PESO THE PAST THREE MEXICAN PRESIDENTS HAVE ENDED THEIR TERMS WITH DEVALUATIONS THAT SEVERELY DAMAGED THE CREDIBILITY OF MEXICO'S RULING PARTY PRESIDENT SALINAS OFTEN TELLS AN ANECDOTE ABOUT HOW CORROSIVE DEVALUATIONS ARE TO THE COUNTRY'S PSYCHE BACK IN THE 1950S HE SAYS MEXICO DEVALUED THE PESO DURING HOLY WEEK TO THIS DAY CURRENCY EXCHANGE HOUSES HAVE LONG LINES OF DOLLAR BUYERS IN THE DAYS BEFORE EASTER THAT'S WHY ANALYSTS SAY MR SALINAS'S BEST NEARTERM OPTION IS TO AGGRESSIVELY PRESS FURTHER GROWTHORIENTED POLICIES IN RECENT WEEKS MEXICO HAS ALREADY TAKEN SOME SUCH STEPS INCLUDING PASSAGE OF A LAW MAKING THE CENTRAL BANK INDEPENDENT THE BIGGEST CHANGE WHAT ECONOMIST BENITO SOLIS CALLS THE SECRET WEAPONWOULD BE TO REPEAL MEXICO'S 1973 INVESTMENT LAW A VESTIGE OF THE COUNTRY'S NATIONALIST PAST THE RATIONALE FOR REPEAL IS EVIDENT IN ITS PROTECTIONIST TITLE THE LAW TO PROMOTE MEXICAN INVESTMENT AND REGULATE FOREIGN INVESTMENT EAGER TO ENCOURAGE MORE FOREIGN INVESTMENT BUT HOPING TO AVOID A MAJOR BATTLE IN THE MEXICAN CONGRESS MR SALINAS IN 1989 SUPERIMPOSED LIBERAL REGULATIONS OVER THIS RESTRICTIVE LAW INVESTORS SAID THIS JURYRIGGED LIBERALIZATION WAS BETTER THAN NOTHING BUT IT DIDN'T GIVE FOREIGNERS AS MUCH CONFIDENCE AS A NEW LAW WOULD THE RESTRICTIVE OLD LAW IS A BIG REASON THAT 80 OF ALL CAPITAL INFLOWS TO MEXICO IN THE PAST THREE YEARS HAVE BEEN SHORTTERM PORTFOLIO INVESTMENTS RATHER THAN PERMANENT EXPENDITURES ON PLANT AND EQUIPMENT SEE RELATED STORY MOST EXPECTED TO PUSH AHEAD SOUTH OF BORDER WSJ JULY 2 1993 9307020125 930702 TECHNOLOGY APPLE EXPECTED TO SELL COMPUTER ACTIVATED BY VOICE BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL CUPERTINO CALIF APPLE COMPUTER INC IS EXPECTED TO BEGIN SELLING WITHIN THE NEXT THREE MONTHS A COMPUTER THAT WILL OBEY ORAL COMMANDS AND TRANSLATE TEXT INTO SPEECH WHILE OTHER COMPUTER SYSTEMS CONTROLLED BY VOICE COMMANDS ARE CURRENTLY AVAILABLE THEY ARE TYPICALLY CUMBERSOME CLUNKY AND EXPENSIVE APPLE'S VOICE TECHNOLOGY IS EXPECTED TO BE MORE ELEGANT THAN THOSE OTHER SYSTEMS ALLOWING IT TO LISTEN TO A STRING OF WORDS THEN APPROPRIATELY PERFORMING VARIOUS TASKS ACCORDING TO PEOPLE FAMILIAR WITH APPLE'S PLANS THE NEW MACHINE IS EXPECTED TO BE ABLE TO PERFORM FROM VOICE COMMANDS SIMPLE TASKS SUCH AS OPENING FILES MOVING DATA AND ANNOTATING TEXT THE COMPUTER IS ALSO EXPECTED TO BE ABLE TO READ ALOUD TEXT ALREADY STORED IN IT MAKING IT USEFUL IN PROOFREADING FOR EXAMPLE THE MACHINE IS NOT DESIGNED TO TAKE DICTATION THE NEW COMPUTER ALSO WILL SERVE AS A STARTING POINT FOR SOFTWARE DEVELOPERS TO DEVELOP PROGRAMS THAT THE COMPANY HOPES WILL LEAD TO MORE AND VARIED USES OF ITS VOICE RECOGNITION TECHNOLOGY CALLED CASPER THE COMPUTER IS BASED ON A MOTOROLA INC 68040 MICROPROCESSOR WHICH IS USED AS THE BRAINS IN HIGHEND MACINTOSH COMPUTERS THE VOICE MACHINE IS AN INTEGRAL PART OF APPLE'S STRATEGY TO POSITION THE COMPANY AS A LEADER IN THE FIELD OF MULTIMEDIA THE COMBINING OF COMPUTERS WITH VIDEO AND AUDIO FEATURES APPLE IS CONSTANTLY TRYING TO OFFER SEXY NEW USES FOR ITS MACHINES THAT TAKE ADVANTAGE OF THE ABILITY TO PRODUCE RICH SOUNDS AND COLORFUL GRAPHICS SPEECH RECOGNITION BECOMES AN ADDED FEATURE IN THAT STRATEGY APPLE HAS ALSO DEVELOPED A PROTOTYPE OF A MACINTOSH MODEL THAT ACTS LIKE A TELEVISION IN THAT YOU CAN WATCH TELEVISION PROGRAMS ON THE COMPUTER SCREEN APPLE IS ALSO WORKING ON WAYS TO COMBINE EQUIPMENT TYPICALLY USED IN OFFICES SUCH AS FAX MACHINES AND TELEPHONES WITH ITS MACINTOSH COMPUTER FOR EXAMPLE THE COMPANY IS WORKING WITH VOICE TECHNOLOGY TO SOMEDAY MAKE A COMPUTER THAT WILL RECEIVE FAXES THEN READ THEM TO A PERSON WHO CALLS THE COMPUTER FOR MESSAGES APPLE DECLINED TO COMMENT SPECIFICALLY ON THE NEW COMPUTER BRODIE KEAST APPLE DIRECTOR OF PRODUCT MARKETING SAID VOICE RECOGNITION SHOULDN'T BE PERCEIVED AS A TECHNOLOGY THAT WILL IMMEDIATELY GAIN WIDESPREAD USE HE SAID YOU WON'T BE ABLE TO TELL THE COMPUTER HELLO MAC WILL YOU CALL THE 711 AND ORDER ME A FROSTY FREEZE SKEPTICISM ABOUNDS ABOUT VOICE RECOGITION TECHNOLOGY AND ITS FUTURE IN COMPUTERS CRITICS SAY THE TECHNOLOGY IS STILL TOO PRIMITIVE OR JUST ISN'T NEEDED BY MOST PEOPLE WHO USE COMPUTERS VOICE RECOGNITION IS A LONG WAY OFF NO MATTER WHAT THEY SAY SAID ANDY SEYBOLD EDITOR IN CHIEF OF OUTLOOK ON PROFESSIONAL COMPUTING AN INDUSTRY NEWSLETTER 9307020124 930702 DIVIDEND NEWS NATIONAL CITY CORP NATIONAL CITY CORP CLEVELAND ANNOUNCED A 2FOR1 STOCK SPLIT AND BOOSTED ITS QUARTERLY DIVIDEND FOR THE SECOND TIME THIS YEAR THE SPLIT IS PAYABLE BETWEEN JULY 12 AND AUG 1 TO STOCK OF RECORD JULY 12 THE NEW POSTSPLIT DIVIDEND 27 CENTS A SHARE IS PAYABLE AUG 1 TO STOCK OF RECORD JULY 12 ON A PRESPLIT BASIS THE BANK HOLDING COMPANY'S NEW DIVIDEND IS 54 CENTS A SHARE UP TWO CENTS FROM THE PREVIOUS 52 CENTS 9307020123 930702 INDUSTRY FOCUS MORTGAGE BANKERS SEEK FASB CHANGE TO BOOST PROFITS ACCOUNTING BOARD WEIGHS LIFTING RULE ON VALUE OF SERVICING HOME LOANS BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL MORTGAGE BANKERS MAY SOON BE ABLE TO BOOST THEIR REPORTED EARNINGS AND NET WORTH WHILE AT THE SAME TIME LIFE MAY BECOME EASIER FOR BORROWERS ALL BECAUSE OF AN EXPECTED CHANGE IN AN ACCOUNTING RULE ACTING IN PART AT THE REQUEST OF THE INDUSTRY THE FINANCIAL ACCOUNTING STANDARDS BOARD A PRIVATE ENTITY THAT SETS STANDARDS THAT CORPORATIONS MUST FOLLOW SAID RECENTLY IT'S CONSIDERING LIFTING THE RULE THAT PREVENTS BANKERS FROM LISTING AS AN ASSET RATHER THAN AS A LIABILITY MUCH OF THE VALUE OF SERVICING HOME MORTGAGES THE BOARD'S STAFF AGREES THE RULE NEEDS TO BE CHANGED AND THE SEVENMEMBER FASB IS EXPECTED TO DECIDE BY SEPTEMBER WHETHER TO TAKE THE ISSUE UP FOR REVIEW IN COMING MONTHS OUR PRIMARY INTEREST IS NOT IN TRYING TO INCREASE ANYBODY'S EARNINGS OR DECREASE ANYBODY'S EARNINGS BUT WE ARE JUST TRYING TO MAKE THE EARNINGS THEY DO REPORT HAVE SUBSTANCE SAYS TIMOTHY LUCAS DIRECTOR OF RESEARCH AND TECHNICAL ACTIVITIES FOR THE BOARD UNDER CURRENT RULES THE NATION'S BANKERS ARE ALLOWED TO BOOK AS AN ASSET THE AMOUNT THEY PAY TO ACQUIRE SERVICING RIGHTS FROM SOMEONE ELSE BUT UNDER THOSE SAME RULES THE VALUE OF SERVICING RIGHTS FOR MORTGAGES THAT A BANK ORIGINATED ITSELF IS NOT CONSIDERED AN ASSET AND INSTEAD IS CHARGED AGAINST EARNINGS THAT HAS THE EFFECT OF DEPRESSING EARNINGS FOR MORTGAGE BANKS AND SOME OTHER BANKS THAT HOLD ON TO THE SERVICING RIGHTS THEY ORIGINATED THE SERVICING RIGHTS BRING IN FEES FOR SUCH THINGS AS COLLECTING MORTGAGE PAYMENTS FROM THE BORROWER AND FOR DISBURSING PRINCIPAL AND INTEREST TO INVESTORS WHO PURCHASE THE VAST MAJORITY OF THE RESIDENTIAL MORTGAGES THEMSELVES ON THE SECONDARY MARKET IF THE RULES WERE CHANGED MANY MORTGAGE BANKERS' REPORTED EARNINGS WOULD JUMP SHARPLY NEXT YEAR AND SOME BANKS' AND THRIFTS' PROFITS WOULD RISE AS MUCH AS 10 AT THE SAME TIME A CHANGE WOULD REDUCE THE SWAPPING OF LOANS FROM LENDER TO LENDER HELPING TO MAINTAIN TIES BETWEEN CONSUMERS AND THEIR ORIGINAL LENDERS ANALYSTS SAY SOME OF THE MORTGAGE BANKERS' COMPETITORS IN THE BANKING INDUSTRY OPPOSE A CHANGE WHEN THE RULE WAS FIRST MADE IN 1982 THE SERVICINGS HELD BY BANKS THAT ORIGINATED THEM WERE LEFT OFF THE BOOKS BECAUSE THEY WERE CONSIDERED AN INTANGIBLE ASSET WITH NO SET VALUE AT THAT TIME THERE WAS NO ESTABLISHED MARKET FOR SELLING SERVICING RIGHTS BUT IN RECENT YEARS A 200 BILLION A YEAR MARKET HAS DEVELOPED WITH THE RIGHTS BEING SOLD IN GREAT NUMBERS MORTGAGE BANKERS SAY THAT INHOUSE SERVICINGS HAVE BECOME JUST AS TANGIBLE AS THOSE THAT ARE BOUGHT BUT FOR NOW ONLY PURCHASED ONES CAN BE ACCOUNTED FOR AS TANGIBLE BECAUSE A SET AMOUNT WAS PAID FOR THEM WITHOUT THE ABILITY TO BOOK THE VALUE OF INHOUSE SERVICING PORTFOLIOS ON A BALANCE SHEET THE BANKERS HAVE HAD TO TRY TO CONVINCE CREDITORS AND OTHER OUTSIDE BUSINESS CONTACTS THAT THEY REALLY HAVE MORE NET WORTH THAN IS REPORTED WE TRY TO EXPLAIN THAT WE HAVE A LOT OF OFFBALANCESHEET EARNINGS AND PEOPLE SAY YEAH SURE WE'VE HEARD THAT ONE BEFORE' SAYS TERRANCE G HODEL CHIEF OPERATING OFFICER OF NORTH AMERICAN MORTGAGE CO A BIG MORTGAGE BANKER BASED IN SANTA ROSA CALIF THE RULE ALSO APPLIES TO BANKS AND THRIFTS THAT HOLD RESIDENTIAL MORTGAGE PORTFOLIOS BUT UNLIKE BANKS AND THRIFTS WHICH DERIVE MUCH OF THEIR INCOME FROM INTEREST ON THE LOANS MORTGAGE BANKERS DEPEND HEAVILY ON FEES FROM SERVICING THE MORTGAGES AND SO ARE MOST AFFECTED MORTGAGE BANKERS WRITE LOANS THEN SELL THEM TO PRIVATE INVESTORS ON THE SECONDARY MARKET WHILE RETAINING RIGHTS TO SERVICE BUT AS A RESULT OF THE RULE MANY MORTGAGE BANKERS SAY THEY HAVE BEEN FORCED TO SELL SOME OF THEIR INHOUSE SERVICING PORTFOLIOS EVEN THOUGH THEY WOULD PREFER TO HANG ON TO THEM TO PREVENT THEMSELVES FROM BEING GROSSLY UNDERVALUED IT'S ABSURD IT'S UNFAIR AND CERTAINLY MISLEADING TO THE INVESTOR WORLD SAYS ANGELO R MOZILO PRESIDENT AND CHIEF EXECUTIVE OFFICER OF COUNTRYWIDE FUNDING CORP THE BIG MORTGAGE BANKING UNIT OF COUNTRYWIDE CREDIT INDUSTRIES INC PASADENA CALIF ADDS DAVID FRANK PRESIDENT OF MARGARETTEN FINANCIAL CORP A PERTH AMBOY NJ MORTGAGE BANKER EVERYONE WHO READS FINANCIAL INFORMATION WOULD GET A BETTER PICTURE OF WHAT'S TRULY OCCURRING IF THE RULE WERE CHANGED BESIDES DEVALUING A MORTGAGE BANKER INDUSTRY EXECUTIVES SAY CONSUMERS LOSE BECAUSE THE RULE FORCES BANKERS TO SELL THEIR SERVICING RIGHTS BREAKING THE REMAINING TIE BETWEEN THE LENDER AND CONSUMERS KEEPING SERVICING ON ONE'S OWN LOANS IS PREFERRED IN THE INDUSTRY BECAUSE IT MAINTAINS CONTACT WITH A BORROWER WHO MAY WANT TO DO BUSINESS AGAIN SUCH AS THROUGH A REFINANCING NORTH AMERICAN MORTGAGE FOR EXAMPLE SAYS IT SOLD NEARLY ONEHALF OF ITS INHOUSE SERVICING RIGHTS LAST YEAR SO IT COULD BOOK EARNINGS OTHERWISE NOT REFLECTED THAT CREATES A CHURNING OF LOANS THAT ARE SWAPPED FROM LENDER TO LENDER ADDING TRANSACTION COSTS THAT MORTGAGE BANKERS SAY ARE EVENTUALLY PASSED TO THE CONSUMER AND ADDING INCONVENIENCES IF MORTGAGE SERVICING IS CHURNED YOU THE HOMEOWNER MAY SEND YOUR NEXT MORTGAGE PAYMENT TO THE WRONG LENDER AND GET A DELINQUENCY NOTICE SAYS WARREN LASKO EXECUTIVE VICE PRESIDENT OF THE MORTGAGE BANKERS ASSOCIATION A WASHINGTON TRADE GROUP THAT LAST YEAR PETITIONED THE FASB FOR THE RULE CHANGE ADDS MR MOZILO EVERYBODY LOSES AND NOBODY WINS SENSIBLE AS IT MAY SEEM THE PROPOSED RULE CHANGE IS DRAWING CRITICISM FROM SOME BANKING COMPETITORS OF MORTGAGE BANKERS THEY FEAR THAT MORE WOULD HAVE TO BE PAID FOR THE SERVICING RIGHTS IF THE ONES PRODUCED INHOUSE ARE MADE A CAPITAL ASSET THEY'RE ALSO CONCERNED THAT THOSE ASSETS WHICH CURRENTLY AREN'T TAXED WOULD BE YET CERTAIN BANKS AND THRIFTS WITH BIG SERVICING PORTFOLIOS ALSO STAND TO BENEFIT FROM ENHANCED EARNINGS LOS ANGELESBASED THRIFT HF AHMANSON & CO FOR INSTANCE COULD HAVE PROFITS BOOSTED BY AS MUCH AS 10 AS WOULD GREAT WESTERN FINANCIAL CORP CHATSWORTH CALIF ESTIMATES JONATHAN E GRAY A SENIOR ANALYST AT SANFORD C BERNSTEIN & CO MORTGAGE BANKERS THOUGH WOULD REAP THE BIGGEST WINDFALL AT LEAST ON PAPER MR GRAY ESTIMATES THAT EARNINGS FOR MARGARETTEN FOR INSTANCE WOULD DOUBLE NEXT YEAR WITH THE ACCOUNTING CHANGE WHILE THEY WOULD INCREASE 66 FOR NORTH AMERICAN 20 FOR FLEET MORTGAGE GROUP COLUMBIA SC AND 11 FOR COUNTRYWIDE THE MORE HEAVILY DEPENDENT ON ORIGINATED SERVICINGS A BANKER IS THE MORE PROFITS WOULD INCREASE MR GRAY SAYS ALTHOUGH A FINANCIAL BOON THE ACCOUNTING CHANGE WOULD NOT NECESSARILY BOLSTER STOCK VALUES FOR THE DOZEN OR SO PUBLICLY TRADED MORTGAGE BANKERS THAT'S BECAUSE SOME ANALYSTS ARE WORRIED THAT A PRICE WAR OVER THE RESIDENTIAL LOANS THEMSELVES MAY BREAK OUT IN THE INDUSTRY CRIMPING PROFIT MARGINS AS THE WAVE OF REFINANCINGS THAT HAS FUELED GROWTH INEVITABLY EBBS THE ACCOUNTING BOARD HAS NOT DETERMINED EXACTLY HOW A CHANGE WOULD BE MADE THE BOARD COULD FOR EXAMPLE DECIDE THAT THE PRESENT VALUE OF AN INHOUSE SERVICING PORTFOLIO BE LISTED AS AN ASSET ANOTHER POSSIBILITY IS FOR IT TO ALLOW BANKERS TO AMORTIZE THE COSTS OF SERVICING OVER THE LIFE OF AN ORIGINATED LOAN IN THE SAME WAY THAT IT NOW DOES FOR THOSE SERVICING RIGHTS BOUGHT ELSEWHERE 9307020122 930702 EGGHEAD TAPS STROM AS PRESIDENT IN MOVE TO INCREASE PROFITS ISSAQUAH WASH EGGHEAD INC SAID IT HIRED MARKETING EXPERT TERENCE STROM AS PRESIDENT IN AN EFFORT TO REVIVE SAGGING PROFITS AT THE RETAILER OF PERSONAL COMPUTER SOFTWARE MR STROM FORMERLY SENIOR VICE PRESIDENT AT BEST BUY CO A COMPUTER RESELLER BRINGS A BUSINESS BACKGROUND TO EGGHEAD THAT THE COMPANY'S TWO MOST SENIOR MANAGERS LACK HE SUCCEEDS TIMOTHY TURNPAUGH WHO RETAINS THE TITLE OF CHIEF EXECUTIVE OFFICER AND WHO ALSO BECOMES CHAIRMAN RICHARD COOLEY FORMERLY CHAIRMAN WILL REMAIN ON THE BOARD MESSRS TURNPAUGH AND COOLEY WORKED TOGETHER AT SEAFIRST BANK IN SEATTLE A UNIT OF BANKAMERICA CORP MR TURNPAUGH ASSUMED HIS POSITION LESS THAN FIVE MONTHS AGO HASTILY RECRUITED BY MR COOLEY AFTER EGGHEAD PROFITS PLUNGED IN THE FISCAL SECOND QUARTER HE SUCCEEDED MATTHEW GRIFFIN WHO RESIGNED IN THE YEAR ENDED APRIL 3 NET INCOME FELL 56 TO 69 MILLION OR 41 CENTS A SHARE FROM 157 MILLION OR 92 CENTS A SHARE SALES ROSE 91 TO 7254 MILLION FROM 6648 MILLION THE COMPANY IS COMPETING WITH COMPUTER SUPERSTORES AMID A PERSONAL COMPUTER PRICE WAR 9307020121 930702 GARBAGE HAULERS STRIKE IN NEW JERSEY COUNTIES TRENTON NJ GARBAGE HAULERS IN 14 NEW JERSEY COUNTIES WENT ON STRIKE YESTERDAY AFTER FAILING TO REACH A NEW COLLECTIVE BARGAINING AGREEMENT WITH A GROUP OF SOLID WASTE HAULING CONCERNS WORKERS REPRESENTED BY TEAMSTERS LOCAL 945 REJECTED A THREEYEAR PACT BY A VOTE OF 404 TO 98 MEMBERS OF THE UNION WHOSE CONTRACT EXPIRED WEDNESDAY COULD NOT BE REACHED TO COMMENT THE 1900 WORKERS NOW ON STRIKE DRIVE GARBAGE TRUCKS AND HAUL SOLID WASTE PRIMARILY IN THE NORTHERN PART OF THE STATE WITH THE THREEDAY HOLIDAY WEEKEND AHEAD STATE OFFICIALS CONCEDE THAT A QUICK SETTLEMENT IS UNLIKELY MEANWHILE THE STATE DEPARTMENT OF ENVIRONMENTAL PROTECTION AND ENERGY SAID IT WOULD EASE CERTAIN SOLID WASTE RESTRICTION RULES AND ALLOW FOR TEMPORARY EMERGENCY SOLID WASTE STORAGE SITES IN ORDER TO ALLEVIATE POSSIBLE HEALTH PROBLEMS WE'RE ALSO TRYING TO MINIMIZE THE IMPACT OF THE STRIKE BY OFFERING SOME ADVICE TO PEOPLE ON HOW TO REDUCE THE AMOUNT OF TRASH THEY PRODUCE SAID A SPOKESMAN FOR THE STATE DEPARTMENT OF ENVIRONMENTAL PROTECTION AND ENERGY STATE ENVIRONMENTAL REGULATORS ALSO ENCOURAGE COMMUNITIES TO CONTINUE RECYCLING PROGRAMS IF AT ALL POSSIBLE THE COUNTIES AFFECTED INCLUDE BERGEN BURLINGTON ESSEX HUDSON HUNTERDON MERCER MIDDLESEX MONMOUTH MORRIS PASSAIC SOMERSET SUSSEX UNION AND WARREN 9307020120 930702 MUTUAL DISCOVERY SETS LIMIT ON NEW INVESTORS NEW YORK MUTUAL DISCOVERY FUND IS ABOUT TO BECOME THE LATEST SMALLCOMPANY STOCK MUTUAL FUND TO CLOSE ITS DOORS TO NEW INVESTORS THE 280 MILLION FUND LAUNCHED ONLY SIX MONTHS AGO WILL CLOSE ON JULY 15 MUTUAL DISCOVERY IS RUN BY MICHAEL PRICE A SHORT HILLS NJ STOCKPICKER BEST KNOWN AS MANAGER OF MUTUAL SHARES FUND MR PRICE'S DECISION TO CLOSE THE FUND FOLLOWS A STRING OF CLOSINGS THIS YEAR BY OTHER SMALLCOMPANY STOCK FUNDS INCLUDING FIDELITY LOWPRICED STOCK FUND PENNSYLVANIA MUTUAL FUND AND STRONG COMMON STOCK FUND FUNDS TYPICALLY ARE CLOSED TO NEW INVESTORS WHEN HEAVY INFLOWS OF NEW CASH MAKE THEM UNWIELDY TO MANAGE 9307020119 930702 MANY CONCERNS USE EXCESS CASH TO REPURCHASE THEIR SHARES BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL STOCK BUYBACKS ARE BACK FACED WITH THE PROSPECT OF ONLY MODEST ECONOMIC GROWTH MANY COMPANIES ARE USING EXCESS CASH TO BUY THEIR OWN SHARES RATHER THAN BUILD NEW PLANTS CONSIDER THE CASE OF MATTEL INC THE EL SEGUNDO CALIF TOYMAKER IT JUST ANNOUNCED PLANS TO BUY 10 MILLION SHARES DURING THE NEXT FOUR YEARS EVEN THOUGH ITS STOCK 24 3/8 IS SELLING AT A HEALTHY 166 TIMES ITS PAST 12MONTH EARNINGS THE REASON PLANT CAPACITY IS SUFFICIENT TO HANDLE CURRENT SALES GROWTH OF 10 TO 12 YEARLY AND EXCESS CASH IS BUILDING UP AT THE RATE OF 200 MILLION A YEAR WE DON'T NEED THE CASH TO GROW SO WE'VE DECIDED TO GIVE IT BACK SAYS JAMES ESKRIDGE MATTEL'S CHIEF FINANCIAL OFFICER ACTUALLY MATTEL PLANS TO USE ABOUT HALF OF THE 200 MILLION EACH YEAR FOR BUYBACKS AND DIVIDENDS AND THE REST FOR GROWTH THE BURST OF BUYBACK ACTIVITY BEGAN IN SPRING 1992 WHEN THE DOW JONES INDUSTRIAL AVERAGE WAS MORE THAN 200 POINTS LOWER THAN TODAY THE VOLUME OF ANNOUNCED BUYBACK PROGRAMS HAS AVERAGED 953 BILLION PER QUARTER SINCE THE SURGE BEGAN UP FROM 536 BILLION IN EARLIER QUARTERS ACCORDING TO SECURITIES DATA CO ALTHOUGH THE PACE OF BUYBACKS ISN'T HAVING ANY DISCERNABLE EFFECT ON THE OVERALL MARKET THE EFFECT ON INDIVIDUAL STOCKS CAN BE SIGNIFICANT SAYS ROBERT GIORDANO DIRECTOR OF ECONOMIC RESEARCH AT GOLDMAN SACHS & CO A CASE IN POINT IS GENERAL DYNAMICS CORP WHICH LAST SUMMER BEGAN SELLING SOME DIVISIONS AND USING THE PROCEEDS TO BUY ITS STOCK WHEN SHARES WERE TRADING AT ABOUT 65 EACH AFTER NEARLY 1 BILLION IN BUYBACKS THE STOCK HAS GAINED ABOUT 37 CLOSING YESTERDAY AT 89 1/2 THE MARKET REACTS POSITIVELY TO PURCHASES AND IT APPRECIATES A FIRM THAT DOES NOT SQUANDER EXCESS CASH SAYS COLUMBIA BUSINESS SCHOOL PROFESSOR GAILEN HITE SOME OF THE BUYBACKS HAVE COME FROM COMPANIES WHOSE STOCK PRICES HAVE BEEN HURT DRUG MAKERS FOR EXAMPLE HAVE SEEN THEIR STOCKS PUMMELED BY FEARS THAT HEALTHCARE REFORM WILL SAP PROFITS AS A RESULT PHARMACEUTICAL COMPANIES HAVE BEEN BIG PLAYERS IN THE BUYBACK GAME BUT ECONOMISTS AND ANALYSTS ARE MUCH MORE INTRIGUED BY COMPANIES THAT ARE AWASH IN CASH THANKS TO IMPROVING SALES AND SEVERAL YEARS OF COSTCUTTING AND DEBT REDUCTION AT THIS STAGE OF AN ECONOMIC RECOVERY MANY SUCH COMPANIES WOULD BE INVESTING HEAVILY IN PLANT AND EQUIPMENT NOT THIS TIME COMPANIES ARE THROWING OFF MORE CASH THAN THEY CAN EVER HOPE TO INVEST IN PLANT EQUIPMENT OR INVENTORIES SAYS CHARLES CLOUGH CHIEF INVESTMENT STRATEGIST FOR MERRILL LYNCH CAPITAL MARKETS COMPANIES ALREADY HAVE PARED DOWN DEBT AND NOW THEY'RE TURNING TO EQUITY HE SAYS HIS PREDICTION HE WHO SHRINKS HIS BALANCE SHEET THE FASTEST WINS IN THE '90S ADDS IRWIN KELLNER CHIEF ECONOMIST FOR CHEMICABANKING CORP CASH ON HAND AND STOCK BUYBACKS ARE THE FINANCE TECHNIQUES DU JOUR OF COURSE THAT CASH COULD GO INTO DIVIDEND INCREASES BUT CORPORATE FINANCE OFFICERS FIND SOME COMPELLING ARGUMENTS IN FAVOR OF STOCK REPURCHASES IT MIGHT BE EASY TO RAISE A DIVIDEND NOW BUT IF CASH DRIES UP COMPANIES HALT A REPURCHASE PROGRAM EASILY AND MORE QUIETLY THAN THEY CAN CUT A DIVIDEND WHICH OFTEN RESULTS IN MUCH PUBLICITY AND A BIG DROP IN STOCK PRICE WHAT'S MORE DIVIDENDS ARE TAXABLE A SUCCESSFUL BUYBACK PROGRAM CREATES CAPITAL GAINS TAXED AT A LOWER RATE DONALDSON CO A MAKER OF FILTRATION SYSTEMS IS A CASE IN POINT DONALDSON IS HOLDING CAPITAL EXPENDITURES RELATIVELY CONSTANT IN 1993 BECAUSE WE JUST HAVEN'T SEEN A BIG TURNAROUND SAYS JOHN SCHWEERS TREASURER DONALDSON'S BOARD APPROVED PURCHASES LAST MONTH TOTALING ONE MILLION SHARES AT THE STOCK'S CURRENT PRICE OF 37 1/4 THE MINNEAPOLIS COMPANY WOULD SPEND MORE THAN 37 MILLION MANY ECONOMISTS BELIEVE CAPITAL EXPENDITURES WILL PICK UP IN COMING MONTHS PUTTING A CRIMP IN BUYBACK ACTIVITY IT'S A QUESTION OF WHEN SAYS KENNETH GOLDSTEIN AN ECONOMIST WITH THE NEW YORKBASED CONFERENCE BOARD IT'S AS IF BUSINESSES ARE ALL LINED UP AT THE START OF A RACE WAITING FOR THE GUN TO GO OFF BUT MERRILL'S MR CLOUGH BELIEVES MANY COMPANIES WILL CONTINUE TO SLASH COSTS AND CAPACITY AND SHED UNDERPERFORMING ASSETS DECLARING THE US TO BE OVERBUILT WITH CONSUMER GOODS AND SERVICE INDUSTRY CAPACITY HE PREDICTS BOARDS OF DIRECTORS WILL APPROVE STOCK BUYBACKS UPON THE REALIZATION THAT THERE'S NO WHERE ELSE TO USE THE CASH CORPORATE EXECUTIVES AGREE THAT IT ISN'T NECESSARILY A CHOICE BETWEEN BUYBACKS AND SPENDING FOR NEW PLANTS AND EQUIPMENT RICHARD VAN HOESEN INVESTOR RELATIONS DIRECTOR FOR SUN MICROSYSTEMS INC SAYS HIS COMPANY DIDN'T FACE THAT QUESTION WHEN IT DECIDED TO BUY 10 MILLION SHARES FOR 280 MILLION OR SO SUN'S SHARES WERE UNCHANGED YESTERDAY AT 29 5/8 IT'S NOT AN EITHER OR SITUATION WHEN YOU HAVE 11 BILLION IN CASH ON HAND HE SAYS 9307020118 930702 RATE OF BOND DEFAULTS BY CORPORATIONS ROSE TO 44 IN FIRST HALF NEW YORK MOODY'S INVESTORS SERVICE INC SAID THE CORPORATE BOND DEFAULT RATE ROSE IN THE FIRST HALF OF 1993 TO 44 FROM 37 LAST YEAR SMALL BUSINESSES WERE THE MAIN CONTRIBUTORS TO 1993 DEFAULTS MOODY'S SAID IT EXPECTS UNCERTAINTY ABOUT THE CLINTON ADMINISTRATION'S PROPOSED FISCAL MEASURES TO CONTINUE TO EXERT FINANCIAL PRESSURES ON SMALLER FIRMS TWENTY CORPORATE ISSUERS HAVE DEFAULTED ON 214 BILLION OF LONGTERM PUBLIC DEBT SO FAR IN 1993 THE BOND RATING AGENCY SAID THIRTYTWO ISSUERS DEFAULTED ON 613 BILLION LAST YEAR MESA INC OF AMARILLO TEXAS WAS THE LARGEST DEFAULT THIS YEAR WITH 600 MILLION OF PUBLICLY HELD DEBT OLYMPIA & YORK WATER STREET FINANCE CORP A UNIT OF OLYMPIA & YORK DEVELOPMENTS LTD OF TORONTO AFFECTED 548 MILLION OF PUBLICLY HELD DEBT ISSUERS DEFAULTING WERE SMALLER THIS YEAR OVER LAST THE COMPANIES HAVE ON AVERAGE 102 MILLION IN OUTSTANDING DEBT COMPARED WITH 173 MILLION LAST YEAR THE RECEPTIVE MARKET FOR SPECULATIVEGRADE DEBT HELPED STAVE OFF DEFAULTS THIS YEAR MOODY'S SAID THIS MARKET DIGESTED 3053 BILLION OF NEW ISSUANCE SO FAR THIS YEAR THIS PACE IF MAINTAINED WILL SHATTER 1992'S RECORD LEVELS OF NEW ISSUANCE THE AGENCY SAID 9307020117 930702 GOODYEAR TO REDEEM DEBENTURES AKRON OHIO GOODYEAR TIRE & RUBBER CO SAID IT WILL REDEEM ON AUG 18 ITS ENTIRE 150 MILLION PRINCIPAL AMOUNT OF 6 7/8 CONVERTIBLE DEBENTURES DUE 2003 THE DEBENTURES WILL BE REDEEMED AT 101 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST GOODYEAR ALSO SAID THE DEBENTURES ARE CONVERTIBLE INTO COMMON STOCK AT 4012 AGGREGATE PRINCIPAL AMOUNT OF DEBENTURE PER COMMON SHARE THROUGH THE CLOSE OF THE BUSINESS DAY ON AUG 18 THE REDEMPTION DATE 9307020116 930702 LETTERS TO THE EDITOR LIVING DANGEROUSLY EVEN AS A LAYMAN WHO HAS LONG FOLLOWED THE ANTICS OF THE PRODUCT LIABILITY LAWYERS I WAS TAKEN ABACK BY THE LEGAL BEAT ARTICLE MAY 24 DETAILING THE SUITS AGAINST MAKERS OF WATER HEATERS SURELY THIS CAN'T BE HAPPENING I AM WELL AWARE THAT SUCH LEGAL SCHOLARS DO NOT CONSIDER THE CONSEQUENCES OF THEIR ACTIONS BEYOND THE CONTINGENCY AWARD BUT I CAN'T HELP BUT WONDER WHAT THEY WOULD PROPOSE THE MANUFACTURERS DO BESIDES QUIT THE BUSINESS ARE WE CONSUMERS TO BE OFFERED WATER HEATERS THAT PRODUCE ONLY LUKEWARM WATER PERHAPS WE CAN ALL GO TO COMMUNAL BATHS AND USE THROWAWAY EATING AND COOKING UTENSILS WHICH PRODUCTS WILL NEXT FALL INTO THE UNREASONABLY DANGEROUS CATEGORY KNIVES MATCHES SHOES THE LIGHT AIRCRAFT INDUSTRY HAS ALREADY BEEN DRIVEN OUT OF BUSINESS WHO WILL BE NEXT 9307020115 930702 ECONOMY GERMANY TRIMS RATES TO SPUR WEAK ECONOMY CENTRAL BANK'S MOVE COMES ON EVE OF G7 SUMMIT CUT IS FOURTH FOR YEAR BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT THE GERMAN CENTRAL BANK ACTING ON THE EVE OF THE TOKYO ECONOMIC SUMMIT AND AMID CALLS FROM ABROAD THAT IT EASE MONETARY POLICY CUT INTEREST RATES FOR THE FOURTH TIME THIS YEAR COMING AT THE SAME TIME THAT A DEADLOCK IN TRADE TALKS AND OTHER DISAGREEMENTS ARE CLOUDING PROSPECTS FOR NEXT WEEK'S SUMMIT OF THE GROUP OF SEVEN INDUSTRIALIZED NATIONS THE GERMAN RATE CUT WAS WELCOME NEWS FOR ALL THE G7 MEMBERS NOT ONLY DOES IT ALLOW GERMAN CHANCELLOR HELMUT KOHL TO ARGUE THAT HIS COUNTRY HAS TAKEN ACTION TO SPUR WORLD GROWTH IT GIVES PRESIDENT CLINTON AT LEAST ONE TANGIBLE SUCCESS TO POINT TO THE US CLEARLY ANTICIPATED THE BUNDESBANK RATE CUT BOTH MR CLINTON AND TREASURY SECRETARY LLOYD BENTSEN EXPLICITLY CALLED FOR SUCH A MOVE WEDNESDAY I'M VERY PLEASED MR BENTSEN SAID YESTERDAY FOR MONTHS THE US HAS BEEN PRESSING FOR STIMULATIVE STEPS BY GERMANY AS WELL AS JAPAN IF THOSE TWO COUNTRIES' SLUMPING ECONOMIES BEGIN TO RECOVER THE WORLD ECONOMY WOULD RECEIVE A SIZABLE BOOST SLOW GROWTH IN OTHER COUNTRIES MEANS WE HAVE SHRINKING MARKETS TO SELL TO AND THAT'S NOT GOOD FOR CREATING JOBS MR BENTSEN SAID SO TO PROMOTE OUR GROWTH WE WANT TO KEEP SEEING LOWER INTEREST RATES IN EUROPE LIKE THE CUT IN GERMANY AND WE WANT TO SEE JAPAN KEEP STIMULATING ITS ECONOMY IN ITS CALL FOR LOWER GERMAN INTEREST RATES WASHINGTON HAS BEEN JOINED BY OTHER EUROPEAN COUNTRIES WHICH BELIEVE THAT QUICKER RATE REDUCTIONS IN GERMANY WILL SPEED MONETARY STIMULUS THROUGHOUT EUROPE INDEED YESTERDAY'S BUNDESBANK ACTION WAS ACCOMPANIED BY RATE CUTS IN BELGIUM THE NETHERLANDS DENMARK SWITZERLAND AUSTRIA AND SWEDEN THE LOMBARD RATE IS THE RATE CHARGED BY THE BUNDESBANK ON SUPPLEMENTAL BORROWINGS THAT USE SECURITIES AS COLLATERAL IT SERVES AS A CEILING FOR SHORTTERM MONEYMARKET RATES THE DISCOUNT RATE IS CHARGED ON LOANS THAT THE BUNDESBANK MAKES TO BANKS IT INFLUENCES THE RATES THAT THE BANKS THEN CHARGE THEIR CUSTOMERS THE DISCOUNTRATE CUT OF 05 PERCENTAGE POINT WAS CONSIDERED GENEROUS BY GERMAN FINANCIAL MARKETS BUT IT ALSO WAS VIEWED AS THE ONLY INTERESTRATE REDUCTION THAT WILL BE MADE DURING THE SUMMER BEFORE YESTERDAY'S ACTION THE BUNDESBANK MOST RECENTLY LOWERED INTEREST RATES APRIL 23 THE RATE CUT CAME TWO DAYS AFTER THE GERMAN GOVERNMENT DESCRIBED AUSTERE BUDGET GUIDELINES FOR 1994 AIMED AT CURBING THE SOARING FISCAL DEFICIT IN DEFENDING THE SLOW RATE AT WHICH IT HAS BEEN REDUCING INTEREST RATES THE BUNDESBANK HAS COMPLAINED THAT THE WIDE DEFICIT HAS BEEN A DRIVING FORCE IN THE EXPANSION OF THE GERMAN MONEY SUPPLY RESURRECTING INFLATION THREATS AS GERMANY HAS STRUGGLED THROUGH RECESSION AND FISCAL IMBALANCES THE CONSERVATIVE CENTRAL BANK HAS WORRIED THAT REDUCING RATES TOO QUICKLY COULD UNDERMINE CONFIDENCE IN THE MARK AT A NEWS BRIEFING FOLLOWING YESTERDAY'S DECISION TO CUT RATES BUNDESBANK PRESIDENT HELMUT SCHLESINGER CITED SIGNS OF WEAKER MONEYSUPPPLY GROWTH AND SLOWING INFLATION LONGTERM INTEREST RATES IN GERMAN CAPITAL MARKETS HAVE BEEN EASING RECENTLY INDICATING THAT INFLATION FEARS IN THE FINANCIAL MARKETS MAY HAVE SUBSIDED WE FELT WE COULD TAKE THIS STEP TODAY WITHOUT ENDANGERING THE STABILITY OF THE MARK MR SCHLESINGER SAID THE BUNDESBANK HOPES TO AVOID A SHARP DEPRECIATION IN THE MARK A WEAKER GERMAN CURRENCY COULD PUT UPWARD PRESSURE ON INFLATION BY RAISING THE PRICES GERMANS PAY FOR IMPORTED GOODS IN HECTIC TRADING FOLLOWING THE RATE CUT THE MARK ADVANCED MODERATELY AGAINST MOST EUROPEAN CURRENCIES AND THE DOLLAR AMID PROFITTAKING LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16933 MARKS DOWN FROM 17035 MARKS LATE WEDNESDAY IN NEW YORK BOB DAVIS IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9307020114 930702 DIVIDEND NEWS STARBUCKS CORP STARBUCKS CORP SEATTLE SAID IT INTENDS TO ISSUE 70 MILLION IN CONVERTIBLE SUBORDINATED DEBENTURES AND TO SPLIT ITS COMMON STOCK 2 FOR 1 THE PROCEEDS OF THE OFFERING WILL BE USED TO FINANCE THE COFFEE RETAILER'S EXPANSION AND FOR OTHER PURPOSES THE COMPANY SAYS IT WILL OPEN 125 NEW STORES IN FISCAL 1994 AND 135 MORE THE FOLLOWING YEAR THE SPLIT IS PAYABLE SEPT 29 TO STOCK OF RECORD AUG 30 9307020113 930702 TECHNOLOGY IBM DEMONSTRATES BLUELASER TECHNOLOGY WITH HIGHER DENSITY ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP DEMONSTRATED A BLUELASER OPTICAL RECORDING SYSTEM THAT CAN READ AND WRITE DATA AT A DENSITY OF 25 BILLION BITS PER SQUARE INCH FIVE TIMES HIGHER THAN CURRENT PRODUCTS USING INFRARED LASERS AT THE NEW DENSITY A TYPICAL DOUBLESIDED 525INCH OPTICAL DISK WOULD HOLD 65 BILLION BYTES OF DATA WHICH IS EQUIVALENT TO ABOUT 6500 250PAGE NOVELS OR A STACK OF DOUBLESPACED TYPEWRITTEN PAPER 1080 FEET HIGH THE HIGHERFREQUENCY BLUE LIGHT CAN BE FOCUSED TO A SMALLER SPOT THAN CAN INFRARED LIGHT PERMITTING MORE DATA BITS TO BE WRITTEN WITHIN THE SAME AREA IBM SAID IBM RECENTLY LICENSED ITS BLUELASER TECHNOLOGY TO COHERENT INC A PALO ALTO CALIF LASER MANUFACTURER ITS FIRST BLUELASER PRODUCTS ARE LIKELY TO BE FOR INDUSTRIAL MEDICAL AND PRINTING APPLICATIONS HAVING LESS DEMANDING REQUIREMENTS THAN DATA STORAGE 9307020112 930702 ALPHAREL INC DISCUSSES MERGER CAMARILLO CALIF ALPHAREL INC SAID IT WAS DISCUSSING A MERGER WITH CLOSELY HELD OPTIGRAPHICS CORP CALLING FOR ALPHAREL TO PAY CASH COMMON STOCK AND NOTES POTENTIAL TERMS WEREN'T DISCLOSED ALPHAREL SAID OPTIGRAPHICS BASED IN SAN DIEGO POSTS REVENUE 25 GREATER THAN THOSE OF ALPHAREL WHICH HAD REVENUE OF 62 MILLION LAST YEAR ALPHAREL MAKES ELECTRONIC DOCUMENT IMAGING SYSTEMS OPTIGRAPHICS SUPPLIES IMAGING PRODUCTS AND SYSTEMS THAT CAPTURE STORE AND EDIT DRAWINGS AND TECHNICAL DOCUMENTS 9307020111 930702 TRACKING TRAVEL BY JONATHAN DAHL CITIES ACROSS THE COUNTRY ARE SPENDING HUNDREDS OF MILLIONS OF DOLLARS ON CONVENTION CENTERS THAT MAY FIND LITTLE USE AND TRAVELERS ARE PAYING MOST OF THE BILL IN THE FORM OF HIGHER HOTEL TAXES THIS YEAR DALLAS LOS ANGELES AND PHILADELPHIA ARE BUILDING OR GREATLY EXPANDING CENTERS THOUGH MOST BIG COMPANIES THE MAINSTAY OF CONVENTIONS CONTINUE TO REDUCE TRAVEL WORK BEGAN LAST MONTH ON A 987 MILLION EXPANSION OF CHICAGO'S MCCORMICK PLACE ALREADY THE NATION'S LARGEST CONVENTION CENTER MORE THAN A DOZEN OTHER CITIES HAVE ADDED OR EXPANDED CONVENTION CENTERS SINCE 1990 SURE THERE'S A LOT OF CONCERN SAYS GARY SHERWIN SPOKESMAN FOR THE CONVENTION AND VISITORS BUREAU IN LOS ANGELES WHICH THIS FALL WILL COMPLETE A 500 MILLION PROJECT DOUBLING ITS CENTER'S SIZE SO FAR HE SAYS THE CITY HAS BOOKED ONLY 19 CONVENTIONS NEXT YEAR FOR A FACILITY THAT WILL BE ABLE TO HOLD TWICE THAT NUMBER OBVIOUSLY WE HAVE A LOT OF CATCHING UP TO DO MR SHERWIN SAYS TO BE SURE SOME PROJECTS WILL INCREASE LOCAL TOURISM BUT OVERALL THERE'S ALREADY WAY TOO MUCH CONVENTION CAPACITY SAYS JAMES CAMMISA EDITOR OF TRAVEL INDUSTRY INDICATORS A NEWSLETTER IN MIAMI THIS WAS JUST THE WRONG TIME TO BE BUILDING COMPANIES HE SAYS SIMPLY AREN'T SENDING AS MANY EMPLOYEES TO CONVENTIONS AND ARE SELECTING TRADE SHOWS CLOSER TO HOME CRITICS SAY THAT TO FUND THESE PROJECTS CITIES HAVE TARGETED A GROUP THAT LACKS ANY LOCAL POLITICAL CLOUT TRAVELERS LOS ANGELES HAS RAISED ITS HOTEL TAX TO 14 EFFECTIVE THIS FALL FROM 10 IN THE LATE '80S PHILADELPHIA HAS ALMOST DOUBLED ITS HOTEL TAX SINCE 1987 TO HELP PAY FOR ITS 522 MILLION CONVENTION CENTER BUT THE TACTIC COULD BACKFIRE CONVENTION ORGANIZERS INCREASINGLY CONSIDER CITY HOTEL TAXES BEFORE SELECTING A SITE AS DO CORPORATE TRAVEL MANAGERS WHEN THEY'RE THINKING ABOUT SENDING A LARGE GROUP OF EMPLOYEES IT WAS NEVER AN ISSUE WHEN HOTEL TAXES WERE 2 OR 3 MR CAMMISA SAYS BUT IT IS WHEN YOU'RE TALKING ABOUT DOUBLEDIGIT TAXES FORGET ABOUT USING HOTELROOM TVS JUST TO WATCH MOVIES OR CHECK OUT EARLY TRAVELERS CAN NOW USE THEM AS A SORT OF HIGHTECH CONCIERGE THANKS TO A TECHNOLOGY KNOWN AS INTERACTIVE SERVICE A HANDFUL OF HOTELS NOW HAVE TVS THAT OFFER A NEW LEVEL OF SERVICES AT THE SHERATON NEW YORK HOTEL & TOWERS GUESTS CAN WATCH VIDEO CHANNELS DESCRIBING LOCAL ATTRACTIONS SHOPS AND RESTAURANTS YOU CAN SEE WHAT THE RESTAURANT LOOKS LIKE AND HEAR ABOUT ITS SPECIALTIES SAYS PAUL BURKE THE HOTEL'S GENERAL MANAGER PRESS ANOTHER BUTTON ON THE REMOTE CONTROL HE SAYS AND GUESTS LEARN NOT ONLY THE ADDRESS OF SAKS FIFTH AVENUE BUT ALSO WHAT THE CAB FARE SHOULD BE FOR THE RIDE OVER ANOTHER CHANNEL PROVIDES INFORMATION ON SPECIAL EXHIBITS AT LOCAL MUSEUMS INCLUDING WHETHER TICKETS ARE HARD TO GET GUESTS CAN ALSO ORDER BREAKFAST IN ADVANCE ON ONE CHANNEL IN SIX DIFFERENT LANGUAGES STOUFFER HOTELS & RESORTS IS TESTING A SIMILAR SERVICE IN SAN FRANCISCO AND SAYS IT EXPECTS TO TAKE IT NATIONWIDE WITHIN TWO YEARS BY THEN STOUFFER SAYS GUESTS SHOULD BE ABLE TO BUY TICKETS TO PLAYS AND OTHER EVENTS AND SHOP AT LOCAL MERCHANTS DIRECTLY THROUGH THE SETS OR AT LEAST BE ABLE TO PUSH A BUTTON AND PHONE THEATERS AND SHOPS AUTOMATICALLY IT WOULDN'T BE SURPRISING IF ANY HOTEL WITH 50 ROOMS OR MORE WILL BE ABLE TO AFFORD THIS TECHNOLOGY SAYS RICHARD BROOKS VICE PRESIDENT OF ROOM MANAGEMENT FOR STOUFFER BASED IN SOLON OHIO GUESTS DON'T PAY TO USE THE SERVICE RESTAURANTS AND SHOPS PAY TO BE INCLUDED AND USUALLY DECIDE WHAT INFORMATION TO PROVIDE THAT ANALYSTS SAY CREATES ONE DRAWBACK THE INFORMATION IS NEITHER COMPLETE NOR OBJECTIVE THE BEST RESTAURANT COULD BE ACROSS THE STREET AND YOU WON'T KNOW ABOUT IT IF IT WASN'T IN THE SERVICE SAYS LARRY CHERVENAK EDITOR OF THE CKC REPORT A NEWSLETTER SPECIALIZING IN HOTEL TECHNOLOGY BUT AT LEAST THIS GIVES YOU A GOOD PLACE TO START WITH GREAT HOOPLA BUT NOT FULL DISCLOSURE HILTON HOTELS RECENTLY ANNOUNCED IT WAS ELIMINATING SURCHARGES FOR CREDITCARD TELEPHONE CALLS FROM ITS ROOMS IN LARGE NEWSPAPER ADS THE COMPANY HAS BEEN TRUMPETING THIS FREEACCESS POLICY AND A PRESS RELEASE SAYS HILTON IS ON A MISSION TO PROVIDE THE BEST HOTEL VALUES IN AMERICA THE CHANGE DOES MAKE HILTON MORE ACCOMMODATING THAN MANY RIVALS WHICH STILL IMPOSE SURCHARGES OF 75 CENTS TO 1 PER CREDITCARD CALL FOR BUSINESS TRAVELERS THE FEES HAVE LONG BEEN A SORE POINT BUT HILTON HASN'T MENTIONED THAT IT CAN STILL PROFIT FROM MANY OF ITS GUESTS' CREDITCARD CALLS UNDER LONGSTANDING AGREEMENTS WITH EACH BIG LONGDISTANCE COMPANY HILTON AND OTHER HOTEL COMPANIES GET COMMISSIONS OF 40 TO 60 CENTS FOR CREDITCARD CALL BY GUESTS HILTON SAYS IT ISN'T CONSIDERING PASSING THAT ON TO ITS GUESTS ANYTIME SOON JOHN BRINKER THE CHAIN'S TELECOMMUNICATIONS DIRECTOR SAYS THE COMMISSIONS ARE NEEDED BECAUSE MOST PROPERTIES ONLY BREAK EVEN ON PHONE OPERATIONS GUESTS EXPECT MORE AND MORE TELEPHONE SERVICE FROM US HE SAYS THEY WANT TWO PHONE LINES NOW IN THEIR ROOMS INSTEAD OF ONE ALL THIS COSTS MONEY BIG CARRENTAL COMPANIES GENERALLY CHARGE SIMILAR RATES AND FEES BUT ADDITIONALDRIVER FEES ARE AN EXCEPTION HERTZ CHARGES 4 A DAY IN MOST STATES AVIS AND NATIONAL CAR RENTAL SYSTEM CHARGE PER RENTAL NOT PER DAY AVIS TYPICALLY CHARGES 25 NATIONAL 10 TWO STATES CALIFORNIA AND NEVADA PROHIBIT SUCH FEES A YEAR AFTER SLASHING BUSINESS FARES AS PART OF A FARE SIMPLIFICATION AIRLINES HAVE GRADUALLY RAISED THEM BACK TO THE OLD LEVELS AND THEN SOME AMERICAN EXPRESS SAYS BUSINESS FARES AVERAGED 342 ON JUNE 1 A 44 INCREASE FROM 237 A YEAR EARLIER AND A 13 RISE FROM 302 IN JUNE 1991 LONG BEFORE THE CUTS WERE MADE 9307020110 930702 US TRAVEL ALERT GOES LARGELY UNNOTICED IN THE MANNER OF A LOST BAG ITS EFFECT IS HARD TO FIND BY SUSAN CAREY STAFF REPORTER OF THE WALL STREET JOURNAL HAVE AMERICANS BECOME BLASE ABOUT TERRORISM OR ARE THEY MERELY IN THE DARK A WORLDWIDE TRAVEL ADVISORY ISSUED BY THE STATE DEPARTMENT SATURDAY WARNED US CITIZENS TO EXERCISE GREATER THAN USUAL CAUTION WHEN TRAVELING ABROAD BUT NEARLY A WEEK LATER FEW TRAVEL PROFESSIONALS EVEN KNOW ABOUT THE ALERT AND THOSE WHO DO SAY THERE'S BEEN SCANT REACTION FROM TRAVELERS WHAT TRAVEL ADVISORY RESPONDED OFFICIALS OF SCANDINAVIAN AIRLINES SYSTEM THE HONG KONG TOURIST ASSOCIATION SWISSAIR THE INTERNATIONAL AIR TRANSPORT ASSOCIATION AND SOCIETE DES HOTELS MERIDIEN AS WELL AS SCORES OF US AND OVERSEAS TRAVEL AGENTS ASKED ABOUT THE LACK OF AWARENESS A STATE DEPARTMENT OFFICIAL SAID HE'S SURPRISED THE ADVISORY WAS SENT TO THE PRESS HE NOTED IT WAS LOADED INTO TRAVEL AGENTS' COMPUTER RESERVATION SYSTEMS PUT ON THE DEPARTMENT'S TELEPHONE HOT LINE AND CABLED TO ALL US DIPLOMATIC POSTS ABROAD CABLES MAY HAVE BEEN SENT BUT THE US CONSULATE IN HONG KONG FOR ONE DIDN'T SEEM AWARE OF THE ALERT IT REFERRED A CALLER TO THE AMERICAN SERVICES CENTER WHICH IS SUPPOSED TO SUPPLY SUCH INFORMATION TO US CITIZENS THERE THE PERSON ANSWERING SAID LET ME CHECK OUR FILES OH YES HERE IT IS THE LAST TIME THE STATE DEPARTMENT ISSUED A WORLDWIDE TRAVEL ALERT IT WAS A MORE SERIOUS WARNING AND IT CAME AT THE START OF THE PERSIAN GULF WAR IN JANUARY 1991 AMERICANS PAID RAPT ATTENTION TO THAT ONE THEY STAYED HOME IN DROVES HELPING TO PRECIPITATE A GLOBAL TOURISM SLUMP THE LATEST WORLDWIDE ALERT CAME IN THE WAKE OF LAST WEEKEND'S US MILITARY RAID ON IRAQ THE RECENT ARRESTS IN NEW YORK OF EIGHT ALLEGED TERRORISTS AND THE FEBRUARY BOMBING OF THE WORLD TRADE CENTER IT ALSO CAME AT THE START OF PEAK SUMMER TRAVEL SEASON THIS IS NOT THE SORT OF THING WE WOULD HAVE DONE A FEW YEARS AGO THE STATE DEPARTMENT SPOKESMAN SAID BUT WE REALIZE PEOPLE WANT MORE INFORMATION THE STATE DEPARTMENT ROUTINELY ISSUES COUNTRYSPECIFIC OR REGIONAL TRAVEL ADVISORIES AND WARNINGS COVERING EVERYTHING FROM CHOLERA OUTBREAKS TO POLITICAL UNREST THE RECENT ADVISORY WHICH COVERS THE WHOLE WORLD SEEMS TO BE HAVING LITTLE EFFECT THOUGH I HAVE EIGHT PEOPLE GOING ON A EUROPEAN CRUISE SAID PATSY MARTIN A TRAVEL AGENT FOR SARGENT & STRONG IN DALLAS AND ONE OF THEM CALLED ME THIS MORNING TO ASK WHAT TO WEAR WITHOUT A SPECIFIC TERRORIST INCIDENT OR OTHER CATASTROPHE TO ATTRACT TRAVELERS' ATTENTION IT TAKES A LONG TIME FOR THESE THINGS TO SINK IN SAID A BRITISH AIRWAYS SPOKESMAN THE GULF WAR THE NUCLEAR ACCIDENT AT CHERNOBYL THE BOMBING OF PAN AM FLIGHT 103 OVER SCOTLAND AND VARIOUS HIJACKINGS AND AIRPORT ATTACKS IN EUROPE IN THE LATE 1980S WERE SPECIFIC AND FRIGHTENING AND THEY SANK IN QUICKLY I WOULD ASSUME THE IMPACT WILL BE VERY VERY SMALL UNLESS THERE ACTUALLY IS A TERRORIST ATTACK SOMEWHERE SAID THOM NULTY PRESIDENT OF ASSOCIATED TRAVEL MANAGEMENT OF SANTA ANA CALIF THEN THE PROBLEM ESCALATES IN MAGNITUDE HOWEVER IN LONDON WHERE WE'VE BEEN SUBJECTED TO MONTHS OF IRA BOMBINGS AMERICAN TOURISTS HAVE REACTED TO THE STRENGTH OF THE DOLLAR AND COME OVER ANYWAY SAID MARTIN AINSCOUGH A LEISUREINDUSTRIES ANALYST FOR NOMURA RESEARCH INSTITUTE MR AINSCOUGH SAID THE BRITISH TOURISM INDUSTRY IS EXPECTING THE NUMBER OF AMERICAN VISITORS THIS YEAR TO MATCH 1988'S RECORD THE NEW YORK OFFICE OF THE 24COUNTRY EUROPEAN TRAVEL COMMISSION HASN'T RECEIVED CALLS FROM TRAVEL AGENTS CONSUMERS THE PRESS OR ANYBODY SAID A SPOKESMAN I HAVEN'T EVEN BEEN ASKED ABOUT IT PERSONALLY BY FRIENDS THE COMMISSION IS EXPECTING 75 MILLION AMERICANS TO VISIT EUROPE THIS YEAR UP AT LEAST 7 FROM 1992 IF INTERNATIONAL EVENTS CONTINUE TO STAY QUIET THEN THE ADVISORY WON'T HAVE A LASTING EFFECT PREDICTED RICHARD ELLIS SENIOR VICE PRESIDENT FOR MARKETING AT LIBERTY TRAVEL INC IN RAMSEY NJ LIBERTY HASN'T SEEN A NOTICEABLE INCREASE IN CANCELLATIONS NEITHER HAS HILTON INTERNATIONAL HOTELS A BRITISH CONCERN WITH 128 PROPERTIES OUTSIDE THE US NO GUESTS HAVE LEFT AND NO ONE CANCELED A BOOKING BECAUSE OF THE ALERT SAID A SPOKESMAN IN LONDON DITTO FOR HYATT INTERNATIONAL HOTELS WHERE A SPOKESWOMAN IN CHICAGO SAID IT'S BUSINESS AS USUAL CONTINENTAL AIRLINES AND DELTA AIR LINES REPORT NO REACTION TO THE ALERT AND AMERICAN AIRLINES SAYS IT'S TOO EARLY TO TELL OUR SUMMER TRAVEL INTERNATIONALLY WAS SOFT TO BEGIN WITH SAID A SPOKESMAN MOST TRAVEL PROFESSIONALS SAY IT'S NOT THAT AMERICANS HAVE BECOME MORE PHILOSOPHICAL ABOUT TERRORIST THREATS IF THE SLIGHTEST INCIDENT OCCURS THERE WILL BE A REACTION PREDICTED ONE HOTELIER IN WASHINGTON DURING THE GULF WAR SHE ADDED GRADESCHOOL TEACHERS FROM DUBUQUE WERE CANCELING FIELD TRIPS TO THE SMITHSONIAN FOR FEAR OF ATTACKS IF AMERICANS SEEM BLASE IT'S BECAUSE THEY'VE BEEN INUNDATED WITH WARNINGS SINCE THE GULF WAR OBSERVED JERRY HOFFMAN PRESIDENT OF SECURITY CONSULTANTS ASI INTERNATIONAL WEST POINT VA THE LATEST ONE IS SO BROAD AND GENERIC HE SAID THAT IT'S LIKE CHICKEN LITTLE THE IRAQIS ARE COMING THE IRAQIS ARE COMING IT HAS NO DEFINITION MEANWHILE THE STATE DEPARTMENT REPORTS THAT IT HAS RECEIVED INQUIRIES ABOUT THE TRAVEL ALERT ITS SPOKESMAN SAID BUT MOST WERE BASED ON THE MISTAKEN NOTION THAT IT ALSO APPLIES TO TRAVEL WITHIN THE US 9307020109 930702 WORLD'S BREWERS SEE IN CHINA HEADY GROWTH BY BUYING INTO TSINGTAO ANHEUSERBUSCH JOINS A PARADE OF INVESTORS BY SALLY D GOLL STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG A DECISION BY ANHEUSERBUSCH COS THIS WEEK TO TAKE A 5 STAKE IN CHINA'S TSINGTAO BREWERY CO UNDERSCORES INTERNATIONAL BREWERS' GROWING INTEREST IN ONE OF THE WORLD'S LARGEST AND FASTESTGROWING BEER MARKETS IN RECENT WEEKS SEVERAL INTERNATIONAL BREWERS HAVE ANNOUNCED PLANS TO CATER TO CHINA'S THIRST FOR PREMIUM BEER AUSTRALIA'S FOSTER'S BREWING GROUP LTD IS FORMING A JOINT VENTURE WITH SHANGHAI'S STATEOWNED HUAGUANG BREWERY AND THE PHILIPPINES' SAN MIGUEL BREWERY LTD WHICH FOR THREE YEARS HAS BEEN BREWING ITS EPONYMOUS BRAND THROUGH A JOINT VENTURE IN THE SOUTHERN GUANGDONG PROVINCE RECENTLY SIGNED AN AGREEMENT WITH A SECOND BREWER THERE MEANWHILE S&P CO UNIT PABST BREWING CO WHICH ALSO BREWS ITS PABST BLUE RIBBON BEER IN SOUTHERN CHINA IS SAID TO BE LOOKING TO ESTABLISH ADDITIONAL JOINT VENTURES POSSIBLY IN THE NORTH ALSO BELIEVED TO BE CONSIDERING CHINA'S POSSIBILITIES ARE NEW ZEALAND'S LION NATHAN LTD AND AT LEAST TWO MAJOR BRITISH BREWERS OTHER INTERNATIONAL BRANDS ALREADY PRODUCED IN CHINA EITHER IN JOINT VENTURES OR UNDER LICENSE INCLUDE THOSE OF DENMARK'S CARLSBERG AS JAPAN'S SUNTORY LTD AND THE US'S MILLER BREWING CO A UNIT OF PHILIP MORRIS INC THROUGH SIMILAR ARRANGEMENTS THE GERMAN LABELS BECK'S HOLSTEN AND STEINBRAU ARE ALSO AVAILABLE CHINA'S RISING LIVING STANDARDS AND ECONOMIC REFORMS HAVE PROVED A POTENT RECIPE FOR GROWTH IN THE COUNTRY'S BEER MARKET OUTPUT HAS EXPANDED MORE THAN 10FOLD IN THE PAST DECADE ACCORDING TO GOVERNMENT STATISTICS WITH MORE THAN 10 MILLION TONS BREWED IN 1992 THE COUNTRY NOW RANKS AS THE WORLD'S THIRDLARGEST BEERPRODUCING NATION AND AS CONSUMPTION REMAINS STEADY OR FALLS IN THE US AND EUROPE INDUSTRY EXECUTIVES SAY CHINA COULD CHALLENGE THE US CURRENTLY THE WORLD'S LARGEST BEER MARKET IN THREE TO FIVE YEARS EQUALLY ALLURING IS CHINA'S RELATIVELY LOW PER CAPITA CONSUMPTION CHINESE BEER DRINKERS TYPICALLY MEN BETWEEN THE AGES OF 20 AND 40 QUAFF AN AVERAGE OF 73 KILOGRAMS 161 POUNDS OF BEER A YEAR ACCORDING TO INDUSTRY ESTIMATES THAT'S WAY BELOW BOTH GERMANY'S 141 KILOGRAM AVERAGE AND THE US'S 95 KILOGRAM AVERAGE ASIA'S THIRSTIEST BEER DRINKERS THE JAPANESE ANNUALLY CONSUME ON AVERAGE 60 KILOGRAMS PER CAPITA BUT TAPPING THE MARKET CAN'T BE ACCOMPLISHED FROM AFAR WHAT'S IMPORTANT TODAY IS WHO'S INSIDE THE MARKET SAYS AN INDUSTRY CONSULTANT PEOPLE REALIZE THE ONLY WAY TO GET INTO THE MARKET IS TO PRODUCE FROM WITHIN FOR STARTERS CHINESE IMPORT DUTIES ON BEER ARE A STIFF 120 THAT BARRIER COMBINED WITH RISING DEMAND HAS CREATED A SMALL BUT GROWING PARALLEL MARKET IN SOUTHERN CHINA FOR SMUGGLED BEER JUST AS IMPORTANT SHIPPING BEER LONG DISTANCES IS IMPRACTICAL AND COSTLY IN ADDITION CHINA'S POOR TRANSPORTATION AND ECONOMIC REGIONALISM COMBINED WITH A PATCHWORK OF DISTRIBUTORS AND MIDDLEMEN CONSPIRE TO MAKE NATIONAL DISTRIBUTION NEARLY IMPOSSIBLE INDEED THIS IS REFLECTED IN THE COUNTRY'S PLETHORA OF LOCAL BREWERIES 860 AT LAST COUNT UP FROM 200 IN 1979 THE ONLY STRONG NATIONAL BRAND IS TSINGTAO CHINA'S LARGEST BREWER A HANDFUL OF IMPORTED BRANDS ENJOY NATIONAL DISTRIBUTION BUT IT'S PRIMARILY LIMITED TO JOINTVENTURE HOTELS INSTEAD EACH PROVINCE IS TYPICALLY DOMINATED BY A HANDFUL OF LOCAL BEERS OF THE FOREIGN BEERS DISTRIBUTED IN SOUTHERN CHINA WHERE SUCH PRODUCTS HAVE ACHIEVED THEIR GREATEST PENETRATION SAN MIGUEL CARLSBERG AND HEINEKEN ARE AMONG THE LEADERS SAY INDUSTRY OBSERVERS PABST HOWEVER APPEARS ON THE ROAD TO ACHIEVING PARTICULARLY WIDE NATIONAL DISTRIBUTION OBSERVERS SAY THAT IN ADDITION TO SELLING WELL IN SOUTHERN CHINA THE BRAND IS MAKING INROADS EVEN IN THE FAR NORTHEAST THROUGH AN AGGRESSIVE PRICING AND DISTRIBUTION POLICY THERE'S ANOTHER FACTOR ENCOURAGING INTERNATIONAL BREWERS TO SET UP SHOP LOCALLY QUALITY CONTROL BREWING BEER EXPLAINS DORA LEE CORPORATE PLANNING OFFICER OF SAN MIGUEL IS LIKE MAKING WINE THIS IS A LIVE THING FIVE YEARS AGO CHINESE CONSUMERS MIGHT HAVE BEEN WILLING TO SWALLOW POORQUALITY BEER NOW THEIR TASTES LIKE THEIR LIVING STANDARDS HAVE IMPROVED CONSUMERS ARE DEMANDING BETTER AND BETTER QUALITY SAYS LOUIS TONG MANAGING DIRECTOR OF SURVEY RESEARCH CHINA LTD A HONG KONGBASED MARKETRESEARCH FIRM BUT PRODUCING PREMIUM BEER IN CHINA IS MADE TOUGH BY THE UNEVEN LOCAL QUALITY OF BEER'S MAIN INGREDIENTS HOPS BARLEY AND RICE CARLSBERG FOR EXAMPLE WHICH IS BREWED IN GUANGDONG THROUGH A LICENSING AGREEMENT WITH HUI ZHOU BREWERY CO IMPORTS ALL ITS HOPS FROM DENMARK ONE OF THE BIGGEST CHALLENGES IN CHINA SAYS MS LEE OF SAN MIGUEL IS PRODUCING BEER THAT IS CONSISTENTLY GOOD ST LOUISBASED ANHEUSERBUSCH WHICH PRODUCES BUDWEISER BEER AMONG OTHER BRANDS WILL SOON FACE THAT CHALLENGE AS WELL THIS IS THE TIME TO GET IN SAYS JOHNSON LEUNG PRESIDENT AND MANAGING DIRECTOR OF THE BREWER'S REGIONAL OPERATIONS HE DESCRIBES HIS COMPANY'S DECISION TO TAKE A STAKE IN TSINGTAO AS A STRATEGIC DECISION THAT WILL LEAD TO FURTHER DISCUSSIONS ON A WIDE RANGE OF COOPERATIVE VENTURES 9307020108 930702 LLOYD'S OF LONDON CHAIRMAN SEEING ENCOURAGING SIGNS SPECIAL TO THE WALL STREET JOURNAL LONDON LLOYD'S OF LONDON CHAIRMAN DAVID ROWLAND SAID HE WAS SEEING ENCOURAGING SIGNS FROM MEMBERS THAT THEIR CASH DRAIN IS NOT AS BAD AS ANTICIPATED BECAUSE OF MEASURES IT PASSED TO HELP UNDERWRITERS MEET THEIR OBLIGATIONS I THINK WE MAY FIND THAT THE CAPITAL BASE OF LLOYD'S NEXT YEAR IS LESS FRAGILE THAN WE ONCE THOUGHT MR ROWLAND SAID HE SAID THAT WAS A PERSONAL OPINION AND WASN'T BASED ON ANY EXACT FIGURES HE ACKNOWLEDGED THE RISK THAT UNDERWRITING CAPACITY COULD DIP IN 1994 BECAUSE OF THE STRAIN ON MEMBERS FROM LOSSES WHICH REACHED 292 BILLION POUNDS US436 BILLION IN 1990 THE MOST RECENT YEAR REPORTED MANY LLOYD'S INVESTORS KNOWN AS NAMES FACING FINANCIAL RUIN HAVE DROPPED OUT LLOYD'S ISN'T A COMPANY BUT RATHER A MARKET IN AND OF ITSELF LLOYD'S MEMBERS UNDERWRITE RISK IN RETURN FOR PREMIUM AND INVESTMENT INCOME AND PROFIT IN GOOD YEARS BUT IF RETURNS DECLINE MEMBERS FACE UNLIMITED PERSONAL LIABILITY TO PAY LOSSES OR AT LEAST THAT'S BEEN THE CASE IN THE PAST MR ROWLAND MADE HIS REMARKS TO REPORTERS WHILE PRESENTING A CONSULTATIVE DOCUMENT ON REQUIREMENTS FOR THE ADMISSION TO THE MARKET FOR THE FIRST TIME OF LIMITEDLIABILITY CORPORATE MEMBERS THE CHAIRMAN SAID HE DIDN'T WANT A BIG BANG IN LLOYD'S CAPACITY ANY MORE THAN HE WANTED IT TO SHRINK IN THE LLOYD'S BUSINESS PLAN PUBLISHED IN APRIL THE MARKET SAID IT WANTED UNDERWRITING CAPACITY TO EXPAND TO BETWEEN 10 BILLION AND 12 BILLION POUNDS BY 1997 FROM 88 BILLION POUNDS CURRENTLY CAPACITY WAS ABOUT 115 BILLION POUNDS AT ITS LATE 1980S PEAK COMMENTS ON THE DOCUMENT PUBLISHED YESTERDAY ARE DUE OVER THE NEXT THREE WEEKS MR ROWLAND SAID A FINAL SET OF RULES WILL BE PUBLISHED IN AUGUST GIVING CORPORATE INVESTORS PLENTY OF TIME TO JOIN FOR THE 1994 ACCOUNT CORPORATIONS FROM THE EUROPEAN COMMUNITY WILL BE ALLOWED AUTOMATICALLY TO PARTICIPATE AND NEGOTIATIONS ARE TAKING PLACE TO ALLOW US CORPORATE INVESTORS TO JOIN FOR 1994 AS WELL THE CHAIRMAN SAID THE CHAIRMAN SAID HE REASSURED CURRENT LLOYD'S MEMBERS THAT HUGE CORPORATIONS WON'T COME TO DOMINATE THE MARKET THE NEW CORPORATE INVESTORS ARE LIKELY TO BE DRAWN FROM THE SAME PEOPLE THAT HAVE INVESTED IN LLOYD'S BEFORE HE SAID THOUGH PACKAGED IN A DIFFERENT WAY TO ENSURE DIVERSITY THE DOCUMENT ON CORPORATE CAPITAL STATED THAT NO ONE UNDERWRITING SYNDICATE MAY ALLOCATE MORE THAN 50 OF ITS PREMIUM LIMIT TO CORPORATE MEMBERS WITHOUT THE CONSENT OF THE COUNCIL NOR MAY ONE CORPORATE MEMBER ACCOUNT FOR MORE THAN 25 OF A SYNDICATE'S LIMIT WITHOUT CONSENT NO MORE THAN 20 OF A CORPORATE MEMBER'S PREMIUM LIMIT MAY BE PUT INTO ANY ONE SYNDICATE CORPORATE MEMBERS WILL BE REQUIRED TO HAVE A MINIMUM OF 15 MILLION POUNDS US22 MILLION IN NET WORTH FOR CORPORATE MEMBERS WITH NET WORTH BETWEEN 15 MILLION AND 5 MILLION POUNDS FUNDS AT LLOYD'S MUST BE COMPRISED OF A MINIMUM OF 15 MILLION POUNDS IN HIGHLY LIQUID ASSETS 9307020107 930702 LETTERS TO THE EDITOR PUBLIC BAMBOOZLED BY CENTRAL BANKERS SOME READERS MAY HAVE MISSED A SHORT ITEM BRITISH BANK RESCUE DISCLOSED IN YOUR MAY 27 ISSUE THAT'S TOO BAD BECAUSE THE ITEM CONSTITUTES A MINILESSON ON THE POLITICAL ECONOMY OF CENTRAL BANKING ACCORDING TO THE PIECE THE BANK OF ENGLAND DISCLOSED IN ITS ANNUAL REPORT THAT IT SPENT ABOUT 180 MILLION LAST YEAR TO RESCUE A GROUP OF SMALL BANKS THE BANK CLAIMED ITS SUPPORT WAS NEEDED TO AVERT A LIQUIDITY CRISIS WHEN DEPOSITORS SOUGHT TO PLACE FUNDS WITH OTHER BANKS BUT A MERE TRANSFER OF DEPOSITS FROM ONE GROUP OF BANKS TO ANOTHER HAS NO EFFECT ON THE MONEY STOCK OR TOTAL LIQUIDITY OF AN ECONOMY AND IS THEREFORE A CRISIS ONLY FOR THE LOSING BANKS FROM THE POINT OF VIEW OF THE PUBLIC AS A WHOLE IT IS NO MORE A CRISIS THAN A LIKE CHANGE IN FIRM SHARES IN ANY NONBANK INDUSTRY UNFORTUNATELY THE PUBLIC HAS BEEN BAMBOOZLED BY CENTRAL BANKERS INTO BELIEVING THAT EVERY BANK FAILURE IS BOUND TO LEAD TO A SYSTEMWIDE CRISIS UNLESS THE AUTHORITIES INTERVENE THUS WHILE OTHER GOVERNMENT AGENCIES OCCASIONALLY PROP UP INEFFICIENT FIRMS WITH COSTLY SUBSIDIES ONLY CENTRAL BANKERS PROUDLY ADMIT DOING SO AND EXPECT TO BE RECEIVED AS HEROES IN THE BARGAIN 9307020104 930702 DIVIDEND NEWS STERLING CHEMICALS INC STERLING CHEMICALS INC HOUSTON SAID ITS BOARD SUSPENDED PAYMENT OF THE QUARTERLY DIVIDEND DUE TO FINANCIAL DIFFICULTIES IN ITS PETROCHEMICALS BUSINESS THE CHEMICALS CONCERN HAD BEEN PAYING A QUARTERLY DIVIDEND OF TWO CENTS A SHARE AT THE END OF FISCAL 1992 STERLING HAD 602 MILLION COMMON SHARES OUTSTANDING STERLING SAID IT IS SUSPENDING THE DIVIDEND TO CONSERVE CASH FLOW FOR DEBT SERVICE AND CAPITAL REQUIREMENTS THE PETROCHEMICALS BUSINESS CONTINUES TO PERFORM AT A LOWER LEVEL THAN EXPECTED AT THE BEGINNING OF THE FISCAL YEAR IT SAID FOR THE FISCAL SECOND QUARTER ENDED MARCH 31 STERLING REPORTED A LOSS OF 26 MILLION OR FIVE CENTS A SHARE ON REVENUE OF 113 MILLION 9307020103 930702 DUKE POWER CONSORTIUM CHARLOTTE NC DUKE POWER CO SAID ITS DUKE ENERGY CORP SUBSIDIARY ALONG WITH FOUR OTHER COMPANIES WON THE RIGHT TO OWN A MAJORITY INTEREST IN AND TO OPERATE ARGENTINA'S PRIMARY TRANSMITTER OF ELECTRICITY THE CONSORTIUM BID 2341 MILLION TO ACQUIRE A 65 STOCK INTEREST IN TRANSENER THE ARGENTINE COMPANY THE ARGENTINE GOVERNMENT WILL OWN 25 AND THE TRANSMISSION COMPANY'S 1100 EMPLOYEES WILL OWN 10 IN ADDITION TO DUKE ENERGY THE COMPANIES INVOLVED IN THE BID ARE NATIONAL GRID CO BASED IN COVENTRY ENGLAND ENTERGY POWER INC OF LITTLE ROCK ARK A SUBSIDIARY OF ENTERGY CORP AND SADE AND SOCIEDAD COMMERCIAL DEL PLATA SA BOTH OF BUENOS AIRES 9307020102 930702 INTERNATIONAL BIG CORPORATIONS IN JAPAN TO SHIFT STANCE ON POLITICS BY JACOB M SCHLESINGER AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO BIG BUSINESS IN JAPAN HEDGING ITS BET IN THE COMING NATIONAL ELECTIONS HAS SIGNALED IT EVENTUALLY MAY HELP FUND SOME OPPOSITION PARTIES KEIDANREN THE TRADE GROUP REPRESENTING JAPAN'S BLUECHIP CORPORATIONS ANNOUNCED IT WILL CONSIDER CONTRIBUTING CAMPAIGN FUNDS TO PARTIES OTHER THAN THE RULING LIBERAL DEMOCRATIC PARTY BUT ONLY AFTER THE JULY 18 NATIONAL ELECTION EXECUTIVES HAVE HARDLY COUNTED OUT THE LDP THEIR LONGTIME PARTNER BUT EVEN SUCH A WEAK STATEMENT MARKS A SIGNIFICANT SHIFT FOR THE GROUP WHICH FOR YEARS HAS FUNNELED ALMOST ALL OF ITS RESOURCES TO THE PROBUSINESS LDP SEPARATELY THE ASAHI SHIMBUN REPORTED THAT FINANCE MINISTER YOSHIRO HAYASHI A SENIOR MEMBER OF THE LDP ASKED SEVEN MAJOR JAPANESE COMMERCIAL BANKS TO GIVE HIM POLITICAL DONATIONS TOTALING AT LEAST 100 MILLION YEN 925000 MR HAYASHI COULDN'T BE REACHED HIS AIDES AT THE MINISTRY DECLINED TO COMMENT JAPANESE BANKERS SAY IT IS UNPRECEDENTED FOR AN ACTING MINISTER TO SOLICIT MONEY FROM THE FINANCIAL INSTITUTIONS OVER WHICH HE HAS AUTHORITY ACCORDING TO THE ASAHI MR HAYASHI CONFIRMED THAT HE HAS FREQUENTLY SOLICITED CONTRIBUTIONS FROM BANKS IN THE PAST AND SIMPLY CONTINUED THAT PRACTICE AFTER ASSUMING HIS POST AS FINANCE MINISTER PUBLICLY TOP JAPANESE EXECUTIVES SAY THEY WANT TO ENCOURAGE THE RECENT STIRRINGS OF A MORE DEMOCRATIC JAPAN BY SUPPORTING A VIABLE TWOPARTY SYSTEM IT'S TIME THEY SAY TO END THE DOMINANCE OF A PARTY THAT HAS BEEN IN POWER SINCE 1955 EVEN THOUGH THE LDP FOSTERED JAPAN'S ECONOMIC SUCCESS IF ONE PARTY STAYS TOO LONG IN POWER IT BECOMES CORRUPT HIROSHI SAITO CHAIRMAN OF NIPPON STEEL CORP SAID IN AN INTERVIEW BESIDES HE ADDED THERE'S GOT TO BE MORE COMPETITION IN POLICY DEBATE GAISHI HIRAIWA KEIDANREN'S CHAIRMAN SAYS HE HOPES JAPAN WILL DEVELOP A TWOPARTY SYSTEM THAT SAID MANY EXECUTIVES PRIVATELY CONFESS THEY DON'T REALLY EXPECT OR WANT MUCH CHANGE DESPITE THE EXCITEMENT OVER THE RECENT UNPRECEDENTED ANTILDP MOVEMENT SOME OF THE EXECUTIVES SAY THEY EXPECT THE LDP TO WIN ENOUGH SEATS TO LEAD ANY COALITION GOVERNMENT THE LDP HAS HAD NUMEROUS DEFECTIONS SINCE JUNE 18 WHEN PRIME MINISTER KIICHI MIYAZAWA LOST A NOCONFIDENCE MOTION AND HAD TO CALL ELECTIONS THE PARTY SEEMS LIKELY TO LOSE ITS PARLIAMENTARY MAJORITY BUT MANY ANALYSTS STRESS THAT THE LDP MACHINE STILL PACKS A PUNCH AND THAT A DIVIDED OPPOSITION COULD KEEP THE LDP IN POWER IF NOT TECHNICALLY IN CONTROL ONE NEW CONSERVATIVE OPPOSITION PARTY MADE UP OF LDP RENEGADES THE JAPAN RENEWAL PARTY LED BY FORMER FINANCE MINISTER TSUTOMU HATA HAS BEEN TRYING TO FORM A LOOSE ALLIANCE WITH TRADITIONAL OPPOSITION PARTIES SUCH AS THE SOCIALISTS BUT THAT PARTNERSHIP SEEMS TO BE HAVING DIFFICULTIES WITH SOCIALIST LEADERS SENDING MIXED SIGNALS ON WHETHER THEY WILL BE ABLE TO RENOUNCE THEIR LEFTWING DOGMA A PROSPECT THAT DOESN'T SIT WELL WITH THE MORE CONSERVATIVE RENEWAL PARTY AMID THE MANEUVERING LEADING ANALYSTS NOW SAY THERE IS LITTLE CHANCE THAT A NONLDP COALITION WILL RUN JAPAN'S GOVERNMENT AFTER THE ELECTION INDEED SOME THINK THE LDP DEFECTIONS NOTWITHSTANDING MAY EVEN WIN ENOUGH SEATS TO KEEP ITS MAJORITY 9307020101 930702 BUSINESS BRIEF SHOWSCAN CORP OMNI FILMS INTERNATIONAL MERGER PLANS ARE CANCELED SHOWSCAN CORP SAID ITS PENDING MERGER WITH OMNI FILMS INTERNATIONAL INC IS CANCELED APPARENTLY BY MUTUAL CONSENT OMNI BASED IN SARASOTA FLA NOTIFIED SHOWSCAN IT WISHED TO TERMINATE THE LETTER OF INTENT BETWEEN THE TWO COMPANIES BUT SHOWSCAN BASED IN CULVER CITY CALIF SAID ITS OWN DIRECTORS BELIEVED THE TRANSACTION WASN'T GOOD FOR SHOWSCAN EITHER THE TWO COMPANIES EACH WITH REVENUE OF ABOUT 11 MILLION HAD SEEMED LIKE A GOOD FIT BOTH ARE MAKERS OF FLIGHTSIMULATORTYPE RIDES USED IN AMUSEMENT PARKS AND OTHER VENUES WITH SHOWSCAN CONCENTRATING ON THE VISUAL AND FILM SIDE OMNI ON THE MOTIONSIMULATOR SIDE SHOWSCAN'S ANNOUNCEMENT DIDN'T SUPPLY REASONS FOR THE BREAKDOWN BUT AN INDIVIDUAL CLOSE TO THE COMPANY SAID TWO ISSUES WERE INVOLVED THEY COULDN'T EFFECTIVELY INTEGRATE THEIR LONGTERM GOALS AND STRATEGIES THE INDIVIDUAL SAID THE OTHER ISSUE SAID THE SOURCE WAS THAT OF GOVERNANCE BOTH ON THE BOARD OF DIRECTORS AND AMONG THE EXECUTIVE RANKS 9307020100 930702 POLAND UNVEILS PLAN TO PRIVATIZE PETROLEUM SECTOR BY DANIEL MICHAEL SPECIAL TO THE WALL STREET JOURNAL WARSAW POLAND UNVEILED A DRAFT PLAN TO PRIVATIZE ITS PETROLEUM REFINING AND DISTRIBUTION SYSTEM THAT WOULD ALLOW FOREIGNERS TO PURCHASE A SUBSTANTIAL INTEREST IN THE INDUSTRY THE PROPOSAL WHICH STILL MUST BE APPROVED BY THE CABINET CALLS FOR THE CREATION OF A NEW HOLDING COMPANY TO BE CALLED POLSKA KOMPANIA NAFTOWA OR PKN THE COMPANY WILL HOLD SHARES IN THE VARIOUS ENTERPRISES MAKING UP THE SECTOR AN EXACT TIMETABLE FOR THE SALE OF SHARES STILL MUST BE DETERMINED ANDRZEJ OLECHOWSKI SPECIAL ADVISER TO THE MINISTRY OF PRIVATIZATION WHO IS LEADING THE PLAN'S PREPARATION SAID HE COULDN'T PUT A TOTAL VALUE ON THE SECTOR AT THIS POINT BUT ANALYSTS ESTIMATE THAT POLAND'S PETROLEUM INDUSTRY WILL REQUIRE AN INVESTMENT OF MORE THAN 25 BILLION TO REACH COMPETITIVE STANDARDS THE PLAN IS IN PART AIMED AT GETTING FOREIGN COMPANIES TO MODERNIZE THE INDUSTRY OF PARTICULAR INTEREST TO FOREIGN INVESTORS ARE POLAND'S TWO MAIN PETROLEUM REFINERIES ON THE BALTIC COAST IN GDANSK AND IN THE CENTRAL CITY OF PLOCK UNDER THE PROPOSAL PKN WOULD RETAIN 50 OF THE SHARES IN POLAND'S 10 REFINERIES WITH A MINORITY PORTION OFFERED TO FOREIGN INVESTORS POLAND'S REFINERIES HAVE A CAPACITY OF 330000 BARRELS A DAY OF WHICH THE PLOCK REFINERY CONTRIBUTES ROUGHLY 200000 BARRELS HOWEVER ITS CENTRAL LOCATION MAKES IT IMPRACTICAL FOR PETROLEUM COMING FROM SOURCES OTHER THAN THE FORMER SOVIET UNION THE 60000 BARRELADAY SEAACCESSIBLE GDANSK REFINERY POLAND'S BEST PETROLEUM PROCESSING FACILITY IS ESTIMATED TO BE VALUED AT 500 MILLION ANALYSTS SAY IT WOULD BE NECESSARY TO INVEST 1 BILLION TO MODERNIZE AND EXPAND THAT REFINERY AND ITS PORT FACILITIES THE PLAN ANNOUNCED TUESDAY BY MR OLECHOWSKI ALSO CALLS FOR CREATION OF AN ENTERPRISE FOR PETROLEUM DISTRIBUTION AND STORAGE TO BE CALLED NAFTOHURT UNDER THE PROPOSAL PKN WOULD TAKE 30 OF NAFTOHURT'S SHARES WITH 30 GOING TO FOREIGN COMPANIES THAT INVEST IN THE REFINERIES SMALLER INVESTORS WOULD BE OFFERED 15 AND 25 WOULD BE HELD BY THE STATE TREASURY NO TOTAL VALUE HAS YET BEEN PLACED ON NAFTOHURT IN ADDITION THE PLAN CALLS FOR THE PRIVATIZATION OF POLAND'S RETAIL GASOLINE STATIONS CPN POLAND'S STATEOWNED PETROLEUM DISTRIBUTOR HAS MORE THAN A THOUSAND SUCH STATIONS AND LAST YEAR ACCOUNTED FOR 75 OF TOTAL GASOLINE AND DIESEL FUEL SALES THE NETWORK ALTHOUGH OUTDATED AND LARGELY RUN DOWN IS SAID TO BE VALUED AT SEVERAL HUNDRED MILLION DOLLARS ONE EUROPEAN OIL COMPANY OFFICIAL WHO REQUESTED ANONYMITY SAID NO DOUBT ABOUT IT THERE IS INTEREST IN GAS STATIONS THERE HOWEVER HE SAID OIL COMPANIES PREFERRED NEW SITES IN POLAND BECAUSE EXISTING STATIONS LIKELY HAD POLLUTION PROBLEMS WHICH THEY DON'T WANT TO TAKE ON THE LIABILITY OF CLEANING UP BUT HE SPECULATED THAT THE POLISH GOVERNMENT MAY REQUIRE FOREIGN OIL COMPANIES TO BUY SOME EXISTING FACILITIES IF THEY WANT TO DO BUSINESS THERE FOREIGN INVESTORS WINNING TENDERS FOR NATIONAL PETROLEUM PROCESSING AND DISTRIBUTION ASSETS WOULD BE ALLOCATED PORTIONS OF FUEL IMPORT QUOTAS UNDER THE PROPOSED PLAN PETROLEUM IMPORTS TO POLAND AND DOMESTIC FUEL PRICES ARE CURRENTLY HEAVILY REGULATED HOWEVER ACCORDING TO AGREEMENTS WITH THE EUROPEAN COMMUNITY POLAND'S PETROLEUM IMPORT QUOTAS WILL BE ABOLISHED IN 1997 AND FUEL PRICES DEREGULATED 9307020099 930702 OTC FOCUS BROADBAND TECHNOLOGIES CLIMBS 58 TO PACE MIXED DAY FOR NASDAQ STOCKS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER MARKET WAS MIXED BUT A HOT NEW STOCK BROADBAND TECHNOLOGIES SOARED 58 THE NASDAQ COMPOSITE INDEX EASED 036 OR 005 TO 70359 ADVANCING ISSUES OUTNUMBERED DECLINERS 1450 TO 1347 ON VOLUME OF 2558 MILLION SHARES DOWN FROM WEDNESDAY'S 2659 MILLION BROADBAND LEAPED TO 28 1/2 FROM ITS OFFERING PRICE OF 18 THE COMPANY OFFERED 35 MILLION SHARES THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO THE SIZE OF THE OFFERING WAS INCREASED FROM THE ORIGINALLY PLANNED 28 MILLION SHARES EXPECTED TO COME TO MARKET AT BETWEEN 15 AND 17 ALL THE EXCITEMENT IS ABOUT A COMPANY WITH NO EARNINGS A DEVELOPMENTSTAGE CONCERN BROADBAND DOES HAVE AN AGREEMENT WITH BELL ATLANTIC THAT COULD RESULT IN SALES TOTALING 100 MILLION OVER THREE YEARS ANALYSTS NOTE HOWEVER THAT BELL ATLANTIC IS LEGALLY REQUIRED TO MAKE PURCHASES TOTALING ONLY 17 MILLION BROADBAND DESIGNS ELECTRONIC TELECOMMUNICATION SYSTEMS THAT ENABLE TELEPHONE COMPANIES TO PROVIDE SERVICES OVER FIBER OPTIC CABLES IN THEIR LOCAL LOOP THE LOCAL LOOP IS THE PART OF THE TELEPHONE NETWORK THAT CONNECTS RESIDENTIAL AND SMALLBUSINESS SUBSCRIBERS TO LOCAL SWITCHING OFFICES BROADBAND'S TECHNOLOGY ENABLES TELEPHONE COMPANIES TO DELIVER TO SUBSCRIBERS VOICE DATA AND VIDEO INFORMATION SERVICES SUCH AS VIDEO ENTERTAINMENT INTERACTIVE EDUCATION AND GRAPHICS DATABASES I AM FLABBERGASTED BY THE PRICE OF THIS STOCK SAID CHARLES RONSON A STOCK PICKER AT NEW YORK INVESTMENT FIRM BALESTRA CAPITAL AND THE PUBLISHER OF THE IPO VALUE MONITOR NEWSLETTER IT'S LIKE ANOTHER 3DO THE MARKET IS GIVING THIS STOCK A EUPHORIC VALUATION THESE STOCKS HAVE ALL THE HOT BUZZ WORDS INTERACTIVE TECHNOLOGY TELECOMMUNICATIONS DIGITAL VIDEO SAID MR RONSON IT'S A MINDLESS COMPOSITION OF ADJECTIVES UNLESS THEY COME UP WITH EXPONENTIAL EARNINGS INCREASES IN THE NEAR HORIZON OVERALL THOUGH SUPPLY AND DEMAND FOR SMALL STOCKS WAS EVENLY BALANCED THE MARKET TRADED IN A VERY NARROW RANGE SAID PETER COOLIDGE A SENIOR EQUITY TRADER AT KIDDER PEABODY & CO WHEN THERE WAS ANY HINT OF SELLING BUYERS CAME IN AND PICKED UP SHARES ON ITS FIRST TRADING DAY PINNACLE MICRO CLIMBED TO 11 1/2 FROM ITS OFFERING PRICE OF 10 1/2 THE IRVINE CALIF MAKER OF COMPUTER STORAGE SYSTEMS OFFERED 18 MILLION SHARES THROUGH UNDERWRITERS LED BY PRUDENTIAL SECURITIES 9307020098 930702 INTERNATIONAL WORKERS IN BRITAIN REMAIN WARY DESPITE SIGNS OF ECONOMIC BOUNCE BY JUDITH VALENTE STAFF REPORTER OF THE WALL STREET JOURNAL NEWTON ABBOT ENGLAND EVERY 60 SECONDS AN ELECTRIC SAW SCREECHES ACROSS ANOTHER SHEET OF GLASS SLICING IT INTO PANES THAT WILL BECOME A GEORGIAN WINDOW BUSINESS IS GOOD AT EPWIN GROUP PLC AT ITS FACTORY HERE IN SOUTHWEST ENGLAND 30 MILES FROM WHERE THE PILGRIMS SAILED FOR AMERICA WORKERS ARE TURNING OUT RECORD NUMBERS OF WINDOWS AND GLASS DOORS DESPITE A SHARP RECESSION EPWIN'S REVENUE ROSE 65 IN 1992 TO 43 MILLION 64 MILLION CURRENT REVENUE IS RUNNING 10 AHEAD OF LAST YEAR'S LEVEL THAT SHOULD MAKE THE FOLKS AT EPWIN CONFIDENT BRITAIN FINALLY IS RECOVERING FROM ITS WORST RECESSION IN 50 YEARS BUT IT DOESN'T WE CANNOT RELY ON THE POSSIBILITY THE ECONOMY WILL STRENGTHEN THIS YEAR SAYS PETER FLEMING EPWIN'S CREWCUT MARKETING MANAGER DESPITE GROWING DEMAND EPWIN PLANS TO HIRE ONLY TEMPORARY WORKERS IF ANY AND IT IS HUNTING FOR BETTER DEALS ON RAW MATERIALS AND PRESSING LONGTIME SUPPLIERS TO LOWER PRICES THE WINDOW MAKER'S CAUTION IS TELLING SO MUCH ABOUT THE STRENGTH OF BRITAIN'S NASCENT RECOVERY DEPENDS ON BUSINESS'S CONFIDENCE TO EXPAND AND CONSUMERS' WILLINGNESS TO SPEND COMPANIES LIKE EPWIN WITH 874 EMPLOYEES PLAY AN IMPORTANT ROLE THEY CAN SENSE MARKET CHANGES MORE QUICKLY THAN BIG CORPORATIONS AND USUALLY PRECEDE THE BIG COMPANIES IN CREATING THE NEW JOBS THAT FUEL A RECOVERY THE BRITISH ECONOMY IS A JUMBLE OF MIXED SIGNALS THE INFLATION RATE AT 3 EXCLUDING MORTGAGE PAYMENTS IS LOW EMPLOYMENT IS EDGING UP EXPORTS ARE RISING BUT RETAIL SALES A KEY MEASURE OF PUBLIC CONFIDENCE ARE DECLINING CONSUMER DEMAND FOR CREDIT REMAINS WEAK AS DOES DOMESTIC APPETITE FOR MANUFACTURED GOODS BUSINESS BANKRUPTCY FILINGS ARE SLOWING BUT PERSONAL BANKRUPTCIES ARE UP SHARPLY THIS ISN'T A MINIBOOMETTE WARNS MICHAEL EVANS MANAGING DIRECTOR OF RETAIL GROUP LTD A LONDON CONSULTING FIRM IT'S JUST A GLIMMER OF IMPROVED PERFORMANCE BRITAIN THE FIRST WESTERN EUROPEAN NATION TO SINK INTO THE CURRENT RECESSION 2 1/2 YEARS AGO IS ARGUABLY BETTER OFF THAN ITS CONTINENTAL NEIGHBORS BUT EARLIER OPTIMISM ABOUT A STRONG REBOUND THIS YEAR HAS DIMMED EVEN KENNETH CLARKE BRITAIN'S NEW CHANCELLOR OF THE EXCHEQUER TALKS NOW OF A MODEST RECOVERY THAT WILL LIMP ALONG IN FITS AND STARTS CONSUMER CONFIDENCE IS WHAT WE RELY ON SAYS EPWIN'S MR FLEMING IF PEOPLE ARE GOING TO SPEND 2500 FOR NEW WINDOWS THEY NEED TO FEEL FAIRLY GOOD ABOUT THEIR JOB PROSPECTS THESE DAYS EVEN EPWIN'S EMPLOYEES WORRY ABOUT THEIR JOBS CHARLES BAKER SPENT FOUR YEARS AT A TECHNICAL COLLEGE STUDYING INTERIOR DESIGN AND DRAFTING NOW HE WEARS BLUE OVERALLS AND SAFETY GLASSES AS HE CUTS ALUMINUM WINDOW FRAMES BUT THE 33YEAROLD MR BAKER HAS NO INTENTION OF LEAVING EPWIN HE WAS LAID OFF SIX TIMES AT PREVIOUS JOBS AND EVEN 6 1/2 YEARS AT EPWIN HASN'T MADE HIM SECURE WORRIED THAT THE ECONOMY MIGHT SINK AGAIN MR BAKER TRADED HIS HARLEYDAVIDSON MOTORCYCLE FOR A CHEAPER MODEL HE NOW PUTS 20 EACH WEEK IN A SAVINGS ACCOUNT I'M NOT EVEN LOOKING AT MAKING ANY BIG PURCHASES SOON HE SAYS DOWN THE ROAD AT EPWIN'S PAIGNTON PLANT ROBERT CAMPBELL A SUPERVISOR RIDES HIS BICYCLE TO WORK INSTEAD OF GETTING A NEW CAR STEPHEN HEATHCOTE A PATIO DOOR ASSEMBLER IS SAVING HIS OVERTIME PAY TO REPLACE THE WINDOWS IN HIS OWN HOME MANAGERS SHARE THEIR WORKERS' FEARS RODNEY WILDE MR BAKER'S BOSS SAYS HE ALWAYS WILL REMEMBER LAST JAN 22 AT 430 PM WHEN HE LOST HIS LAST JOB AS A PRODUCTION MANAGER MR WILDE'S DAUGHTER WAS LET GO ELSEWHERE THE SAME DAY YOU NEVER FEEL SECURE AGAIN HE SAYS THE UNEMPLOYMENT RATE CAUSES THE MOST CONCERN THOUGH MORE PEOPLE ARE FINDING WORK THE INCREASE IS MODEST WITH THE JOBLESS RATE SEEMINGLY STUCK AT 10 TO MAKE MATTERS WORSE BRITAIN'S EMPLOYMENT FIGURES ARE IN QUESTION THERE IS EVIDENCE THE GOVERNMENT IS EXCLUDING PEOPLE IN TRAINING IN ITS UNEMPLOYMENT COUNT AND IS APPROVING MORE PEOPLE FOR DISABILITY BENEFITS TO GET THEM OFF THE ROLLS THE OUTLOOK IS BLEAKER AT LARGE CORPORATIONS IMPERIAL CHEMICAL INDUSTRIES PLC EXPECTS EARNINGS TO IMPROVE THIS YEAR CHIEF ECONOMIST RICHARD FREEMAN SAYS BUT HE SAYS THE RESULTS WILL COME MOSTLY FROM THE COMPANY'S EFFORTS TO CUT COSTS AND IMPROVE EFFICIENCY RATHER THAN A STRONG UPSWING IN THE ECONOMY IN FEBRUARY THE CHEMICALS MAKER BEGAN A PROCESS THAT EVENTUALLY WILL ELIMINATE 7000 JOBS THE ECONOMY IS STILL VERY FRAGILE MR FREEMAN SAYS THE BRITISH UNIT OF INTERNATIONAL BUSINESS MACHINES CORP SAYS DEMAND FOR ITS PERSONAL COMPUTERS IS UP BUT IT STILL PLANS TO CUT 600 WORKERS BY SUMMER'S END EVEN THOUGH 1400 EMPLOYEES TOOK VOLUNTARY SEVERANCE PLANS EARLIER THIS YEAR RICHARD MACKAY IBM'S UNITED KINGDOM TREASURER SAYS THE COMPANY IS CONCERNED THAT BRITAIN'S NATIONAL DEBT AND NEW TAXES COULD DEPRESS THE ECONOMY THAT IS ALSO WHY MR WILDE THE EPWIN MANAGER SAYS HE IS PUTTING ASIDE WHATEVER DISCRETIONARY MONEY HE HAS FOR HIS RETIREMENT 16 YEARS FROM NOW IN MY OPINION THIS ECONOMY IS GOING NOWHERE HE SAYS 9307020096 930702 CUBIC TO DESIGN ARMY FACILITY SAN DIEGO CUBIC CORP CONFIRMED THAT ITS DEFENSE SYSTEMS UNIT RECEIVED A 31MONTH 55 MILLION CONTRACT FROM THE US DEPARTMENT OF DEFENSE TO DESIGN BUILD AND INSTALL A TRAINING RANGE AT FORT POLK LA THE CONTRACT ANNOUNCED BY REP LYNN SCHENK D CALIF INCLUDES AN INITIAL ORDER OF 40 MILLION AND OPTIONS OF UP TO 15 MILLION THE TRAINING RANGE KNOWN AS THE JOINT READINESS TRAINING CENTER INSTRUMENTATION SYSTEM WILL BE BUILT FOR THE ARMY'S SIMULATION TRAINING AND INSTRUMENTATION COMMAND WHICH HAS HEADQUARTERS IN ORLANDO FLA IT WILL BE USED BY ARMY AIR FORCE AND NAVY PERSONNEL THE ELECTRONICS COMPANY SAID 9307020095 930702 LETTERS TO THE EDITOR DON'T BLAME THE MEDIA BILL DID IT TO HIMSELF YOUR JUNE 9 ARTICLE CLINTON IS FINDING FEW FRIENDS IN MEDIA CIRCLES RUNS COUNTER TO THE PERCEPTIONS OF EVERY REASONABLE PERSON THAT IS NONULTRALIBERAL WITH WHOM I'M ACQUAINTED YOU ASSERT THAT THE PRESS HAS TREATED CLINTON LESS KINDLY THAN ANY PRESIDENT SINCE RICHARD NIXON WHAT OF THE RIDICULE HEAPED UPON RONALD REAGAN WHAT OF THE HOSTILE SNIPING AT GEORGE BUSH ESPECIALLY DURING THE ELECTION HOW ABOUT THE STORIES ON THE ECONOMY PROMPTED BY NO PARTICULAR NEWS EVENT INDICATING THAT THE REPUBLICAN POLICIES OF THE '80S ARE ENTIRELY TO BLAME FOR ALL CURRENT ECONOMIC PROBLEMS THE REASON NEGATIVE STORIES ARE BEING WRITTEN ABOUT BILL CLINTON IS OBVIOUS HIS IMMEDIATE AND NEARLY COMPLETE REPUDIATION OF ALL THE PROMISES THAT GOT HIM ELECTED WHEN GEORGE BUSH BACKED DOWN FROM HIS NONEWTAXES PLEDGE SEVERAL YEARS INTO HIS PRESIDENCY THE UPROAR WAS INCESSANT BILL CLINTON TURNED A PROMISED TAX CUT INTO A HUGE TAX HIKE IMMEDIATELY AFTER TAKING OFFICE ON ISSUE AFTER ISSUE HE HAS WAVERED AND BENT TO EMBRACE THE LATEST POLL FIGURES EXCEPT FOR A FEW PET LIBERAL ISSUES IS IT ANY WONDER NO ONE HAS ANY RESPECT FOR HIM 9307020093 930702 FRANCHISE FINANCE SEEKS CONSOLIDATION OF 11 PARTNERSHIPS SCOTTSDALE ARIZ A LARGE SPONSOR OF REAL ESTATE LIMITED PARTNERSHIPS SAID IT WILL TRY TO CONSOLIDATE 11 OF THEM INTO A NEW PUBLIC COMPANY IN WHAT COULD BE ONE OF THE LARGEST NEW REAL ESTATE INVESTMENT TRUSTS CREATED IN YEARS SCOTTSDALEBASED FRANCHISE FINANCE CORP OF AMERICA WILL SEEK APPROVAL FOR THE ROLLUP FROM INVESTORS IN THE PARTNERSHIPS WHICH TOGETHER OWN MORE THAN 1100 FRANCHISED RESTAURANT PROPERTIES IN 44 STATES A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION VALUED THE DEAL AT AS MUCH AS 821 MILLION IT IS THE SECOND ROLLUP PROPOSED SINCE THESE TYPES OF REORGANIZATIONS GROUND TO A HALT IN 1991 AFTER COMING UNDER HEAVY CRITICISM FROM INVESTORS MANY EARLIER ROLLUPS HAD SADDLED INVESTORS WITH BIG LOSSES WHEN SHARE PRICES PLUNGED WHILE SPONSORS LOGGED CONSIDERABLE PROFITS REFORM MEASURES WERE DEBATED AT A STATE AND FEDERAL LEVEL AND CALIFORNIA ENACTED TOUGH NEW REGULATIONS LAST YEAR IN THE FFCA DEAL THE NEW COMPANY WILL INCLUDE ONLY THOSE PARTNERSHIPS IN WHICH A MAJORITY OF LIMITED PARTNERS VOTE TO CONSOLIDATE EACH INVESTOR WILL HAVE THE OPTION TO RECEIVE SHARES IN THE NEW COMPANY WITH A PROJECTED ANNUAL DIVIDEND YIELD OF 94 OR VARIABLERATE BONDS THIS OPTION IS AIMED AT INVESTORS WHO FEAR A PLUNGE IN SHARE PRICES AFTER THE OFFERING THE PROPOSAL CALLS FOR THE NEW COMPANY TO BE SELFADMINISTERED MEANING THAT IT WILL NOT HAVE TO PAY FEES TO AN OUTSIDE MANAGMENT COMPANY ANALYSTS AND INVESTORS IN REAL ESTATE INVESTMENT TRUSTS FAVOR SUCH ARRANGEMENTS BECAUSE THEY DON'T OFFER SPONSORS AN OPPORTUNITY TO SET UP SEPARATE MANAGEMENT FIRMS TO MILK THE COMPANY FOR FEES ALTHOUGH EXPERTS SAY THE NEW CALIFORNIA LEGISLATION FORBIDS SUCH ARRANGEMENTS FFCA MANAGEMENT HAS APPROACHED STATE OFFICIALS FOR ADMINISTRATIVE APPROVAL 9307020092 930702 DIVIDEND NEWS NATIONAL INCOME REALTY TRUST NATIONAL INCOME REALTY TRUST DALLAS SAID IT WOULD RESUME PAYING QUARTERLY DIVIDENDS WITH A DIVIDEND OF 10 CENTS A SHARE PAYABLE SEPT 1 TO HOLDERS OF RECORD AUG 16 THE REAL ESTATE INVESTMENT TRUST LAST PAID A DIVIDEND OF THREE CENTS A SHARE ON FEB 10 1992 THE TRUST SAID THE DIVIDEND RESUMPTION IS BASED ON THE CONTINUED IMPROVEMENT IN NET INCOME FROM ITS 26 APARTMENT COMMUNITIES AND THE INCREASINGLY POSITIVE CASH FLOW OF THE TRUST'S REAL ESTATE PORTFOLIO THE TRUST ALSO ANNOUNCED A 10 STOCK DIVIDEND FOR EACH 10 SHARES HELD ON AUG 16 THE TRUST WILL ISSUE ONE NEW SHARE ON SEPT 1 WITH FRACTIONAL SHARES BEING PAID IN CASH 9307020091 930702 OUT FOR BLOOD FOR COMPAQ AND DELL ACCENT IS ON PERSONAL IN THE COMPUTER WARS FIRMS' DIFFERING APPROACHES MIRROR INDUSTRY DEBATE TECHNOLOGY VS MARKETING NASTY ADS AND TALENT RAIDS BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL AUSTIN TEXAS AT SOME POINT IN THE BITTER GRUDGE MATCH BETWEEN TEXAS' PERSONAL COMPUTER GIANTS EVERYBODY HAS HATED SEAN BURKE THE FOLKS AT DELL COMPUTER CORP IN AUSTIN HATED HIM AFTER THE TEAM OF COMPUTER WHIZZES HE HEADED AT COMPAQ COMPUTER CORP IN HOUSTON HELPED DEVELOP A LINE OF LOWPRICED COMPUTERS THAT HIT DELL HARD NOW MR BURKE HANDPICKED BY COMPAQ'S CHAIRMAN TO LAUNCH THE NEW LINE OF MACHINES HAS SWITCHED SIDES TAKING WITH HIM INTIMATE KNOWLEDGE OF COMPAQ'S DESKTOP COMPUTER STRATEGY AS WELL AS TWOTHIRDS OF THE TEAM BEHIND THE ENTRYLEVEL PROLINEA LINE THE DEFECTION IS IN THE GUNSBLAZING SHOOTOUT BETWEEN TWO OF THE LARGEST COMPUTER COMPANIES IN AMERICA A BULL'SEYE HIT FOR DELL I WON'T UNDERESTIMATE HOW MUCH WE PLAN TO TARGET COMPAQ MR BURKE BOASTS YEAH IT'S BIG BIG MAYBE BUT NOT NEW FOR MORE THAN A YEAR NOW DELL'S TARGETING OF COMPAQ AND VICE VERSA HAS PRODUCED THE NASTIEST SQUABBLE IN THE PERSONAL COMPUTER BUSINESS THE TWO COMPANIES HEADQUARTERED LESS THAN 200 MILES APART HAVE TRADED VICIOUS ATTACKS IN ADS AND DUMPED DIRT ON EACH OTHER IN THE PRESS THEY HAVE STOLEN ONE ANOTHER'S EMPLOYEES AND HIRED FOCUS GROUPS TO FIND HOLES IN EACH OTHER'S STRATEGIES COMPAQ EVEN CHARGES THAT DELL FLEW A HELICOPTER OVER ITS MANUFACTURING PLANT TO PHOTOGRAPH ITS SIZE AND LAYOUT AN ACCUSATION DELL DISMISSES AS SILLY THERE IS OF COURSE MORE BEHIND THE SQUABBLING THAN SOME PERSONAL ANIMUS IN THE FRONT LINES OF THE RELENTLESS PC WARS THE OPPOSING SIDES ARE DEFINED BY THESE TWO COMPANIES WHICH HAVE TAKEN TURNS IN THE PAST YEAR AS EITHER THE HOTTEST THING AROUND OR THE LATEST FALLEN ANGEL AND IN JUST ABOUT EVERY MAJOR HOTBUTTON TOPIC OF COMPUTING TODAY FROM QUESTIONS OF MANUFACTURING AND DISTRIBUTION TO THE DEVELOPMENT OF NEW COMPUTER TECHNOLOGY DELL AND COMPAQ HAVE CHOSEN DIFFERENT PATHS FOUNDED BY ENGINEERS COMPAQ THE THIRDLARGEST COMPUTER MAKER WITH 1992 SALES OF 41 BILLION HAS BEEN AN EARLY ADAPTER OF CUTTINGEDGE PC TECHNOLOGY IT BELIEVES THAT DEVELOPING AND MAKING ITS OWN PRODUCTS WILL HELP THE COMPANY RISE IN AN INDUSTRY WHERE MORE AND MORE PCS ARE BEGINNING TO LOOK THE SAME MARKETINGDRIVEN DELL THE FOURTH LARGEST WITH 1992 SALES OF 2 BILLION FOCUSES MUCH MORE ON HOW IT DISTRIBUTES AND SELLS COMPUTERS THAN ON HOW THEY ARE BUILT WHAT HAS BECOME CLEAR FROM RECENT HISTORY IS THAT BOTH COMPANIES HAVE BEEN A LITTLE BIT RIGHT AND THAT WHEN THEIR STRATEGIES HAVE BEEN MOST RIGID BOTH HAVE RUN INTO TROUBLE EACH HAS BORROWED SOME PRINCIPLES FROM THE OTHER IN ATTEMPTING TO RECOVER FROM ITS STUMBLES THE QUESTION OF WHICH COMPANY'S APPROACH WILL COME TO DOMINATE THE PERSONAL COMPUTER INDUSTRY SEEMS PARTICULARLY RELEVANT TODAY AS THE INDUSTRY'S LONGPREDICTED SHAKEOUT CONTINUES PACKARD BELL ELECTRONICS INC WHICH HAS FOUND ITSELF VULNERABLE TO LOWERCOST COMPETITORS HAS SOLD A CHUNK OF ITS BUSINESS TO AN AMERICAN COMPANY BACKED BY THE FRENCH GOVERNMENT COMPUADD COMPUTER CORP AN AUSTINBASED PC MAKER ONCE VIEWED AS A THREAT TO DELL'S SURVIVAL HAS FILED FOR BANKRUPTCY PROTECTION AND TANDY CORP ONE OF THE GRANDDADDIES OF THE PC BUSINESS HAS AGREED TO SELL MOST OF ITS COMPUTER MANUFACTURING TO AST RESEARCH INC CHOOSING TO FOCUS ON RETAILING MEANWHILE SOME OF THE CENTRAL ISSUES OF DESKTOP COMPUTING ARE HASHED OUT DAY BY DAY AND OFTEN NOT VERY POLITELY WITHIN A MORNING'S DRIVE IN SOUTHCENTRAL TEXAS IN RECENT MONTHS DELL AND COMPAQ HAVE TRADED ATTACKS IN A SERIES OF ADS THAT ACCUSE EACH OTHER OF SELLING LOUSY PRODUCTS AT INFLATED PRICES NOW AFTER A SERIES OF FOCUSGROUP SESSIONS DESIGNED TO ANALYZE DELL'S BARRAGE COMPAQ HAS LAUNCHED A NEW CAMPAIGN ACCUSING DELL OF MUDSLINGING SEVERAL YEARS AGO THINGS GOT SO BAD THAT COMPAQ SUED DELL FOR A SERIES OF ADS RUNNING IN EUROPE THE CASE WAS LATER SETTLED AND DELL PULLED THE ADS I'M TOTALLY FED UP WITH THAT BS COMING OUT OF AUSTIN SNAPS GIAN CARLO BISONE THE AFFABLE ITALIAN WHO RUNS COMPAQ'S MARKETING ARM FROM THE COMPANY'S WOODED CAMPUS IN NORTHWEST HOUSTON SIMILARLY THE TWO COMPANIES HAVE HAMMERED IT OUT IN THE PRESS EACH FIRM'S PUBLICRELATIONS STAFF DISTRIBUTES COPIES OF NEGATIVE STORIES ABOUT THE OTHER TO REPORTERS AND EACH WORKS UP VOLUMES OF MEDIA WHITE PAPERS DISSECTING THE OTHER COMPANY'S PRODUCTS AND STRATEGY A THREERING NOTEBOOK PUT TOGETHER BY COMPAQ THIS MONTH RUNS MORE THAN 200 PAGES AND INCLUDES DETAILED RECORDS OF DELL CHAIRMAN MICHAEL S DELL'S RECENT STOCK TRADES SO OBSESSED ARE THEY THAT BOTH HAVE RESORTED TO SNOOPING PHONE OPERATORS ON THE MAILORDER SALES BANKS OF BOTH COMPANIES SAY THEY ARE ROUTINELY SWAMPED WITH CALLS FROM THE COMPETITION IMMEDIATELY FOLLOWING THE INTRODUCTION OF A NEW PRODUCT THE CALLERS IDENTIFIED BY A DISPLAY SHOWING THE INCOMING NUMBERS ARE HOPING TO SIZE UP THE AVAILABILITY OF NEW MACHINES AND OFTEN BUY A FEW TO TEAR THEM APART AND SEE HOW THEY TICK IT'S LIKE AN OUTTOKILL TYPE OF MENTALITY SAID DAVID BLACK THE FORMER CHIEF OF COMPAQ'S PRINTER OPERATIONS WHO LEFT IN A MANAGEMENT PURGE IN FEBRUARY IT'S BEYOND SPORTSMANLIKE COMPETITION INDEED DELL OFFICIALS BOAST THAT THE COMPANY'S HEADQUARTERS STAFF HAS BEEN KNOWN TO WEAR COMBAT FATIGUES ON FRIDAYS TO GEAR UP FOR THE WAR AGAINST COMPAQ A TRADITION STARTED BY MR DELL HIMSELF AT COMPAQ CHIEF EXECUTIVE ECKHARD PFEIFFER IS VIEWED BY INSIDERS AS THINSKINNED WHEN IT COMES TO DELL ONE FORMER EXECUTIVE REMEMBERS HIM EXPLODING IN ANGER DURING MANAGERS' MEETINGS FOLLOWING A PARTICULARLY NASTY DELL ATTACK YOU CAN'T MENTION THE OTHER COMPANY'S NAME WITHOUT SEEING PEOPLE'S NOSTRILS FLARE OPEN SAYS HOUSTON COMPUTER CONSULTANT CHERYL CURRID YOU CAN FEEL THEIR STOMACHS CLENCH THE FEUD IS ROOTED IN PROFOUND DIFFERENCES IN APPROACH AND PERSONALITY COMPAQ HAS ALWAYS BEEN AN ENGINEERS' SHOP FOUNDED 11 YEARS AGO BY A GROUP OF FORMER TEXAS INSTRUMENTS INC MANAGERS IT HAS PRIDED ITSELF ON ELEGANT THOUGH SOMETIMES OVERENGINEERED DESIGN AND MANUFACTURING FUNDAMENTAL TO THE COMPANY'S MISSION IS THE BELIEF THAT YOU OUGHT TO MAKE EVERYTHING YOU SELL THOUGH THE ADVANTAGES TO THAT ARE SOMETIMES SUBTLE COMPAQ EXECUTIVES INSIST THEY ARE IMPORTANT IT IS THEY SAY LIKE THE DIFFERENCE BETWEEN AN 8000 CAR AND A 40000 LUXURY SEDAN BOTH HAVE ENGINES AND TIRES BUT THE DOORS ON THE COSTLIER MODEL CLOSE A LITTLE TIGHTER AND THE DASHBOARD DOESN'T RATTLE SO COMPAQ HAS SPENT TENS OF MILLIONS OF DOLLARS ON MANUFACTURING LINES IN HOUSTON NOW CAPABLE OF PUMPING OUT ONE PROLINEA PC EVERY 45 SECONDS THE SAME OUTLOOK APPLIES TO TECHNOLOGY COMPAQ IS CONVINCED THAT BEING THE FIRST TO INCORPORATE NEW TECHNOLOGY WILL DETERMINE WHICH PC COMPANIES MAKE IT AND WHICH WON'T COMPAQ IS PARTICULARLY FOND OF THAT ARGUMENT TODAY AS IT BELIEVES THE INDUSTRY IS ENTERING A NEW ERA OF TECHNOLOGICAL ADVANCES WITH IMPROVEMENTS IN HANDHELD AND MOBILE COMPUTERS AND THE IMPENDING MARRIAGE OF THE PC AND THE TV SET IT'S BEEN RELATIVELY STAGNANT IN TECHNOLOGY FOR QUITE A WHILE SAYS MR PFEIFFER THIS WILL BE A MILESTONE YEAR I DON'T CARE WHAT MICHAEL DELL SAYS THE PEOPLE AT DELL THINK COMPAQ'S TALK ABOUT TECHNOLOGY IS A BUNCH OF HOOEY THE DESKTOP PC IS ABOUT TWO STEPS UP THE FOOD CHAIN FROM RICE SAYS JOEL J KOCHER DELL'S SENIOR VICE PRESIDENT AND SECONDINCOMMAND THIS ISN'T A TECHNOLOGY BUSINESS ANYMORE THOUGH SOME IN DELL'S OWN ENGINEERING STAFF GRUMBLE ABOUT MR KOCHER'S BLUNTNESS THEY SAY HE IS AN EXTREMIST HIS VIEWS NEVERTHELESS ARE WIDELY HELD INSIDE THE STEEL AND MIRROREDGLASS HIGHRISE OF DELL'S HEADQUARTERS THE BELIEF HERE IS THAT THE DAYS OF INNOVATION IN DESKTOP COMPUTING ARE OVER AT LEAST FOR THE COMPANIES THAT MAKE THE SHELL OF A PC MICROSOFT CORP'S SOFTWARE AND INTEL CORP'S MICROPROCESSOR PERFORM THE REAL MAGIC IN PCS THEY SAY WHAT IS LEFT ARE CABLES AND CONNECTORS THAT COULD JUST AS EASILY BE SLAPPED TOGETHER IN HOUSTON OR HOBOKEN OR HAITI SO WHY BOTHER DELL'S ANSWER IS THAT APPEARANCE TO THE CONTRARY IT REALLY ISN'T IN THE BUSINESS OF MAKING COMPUTERS RATHER PEOPLE HERE VIEW THE COMPANY AS A DISTRIBUTION ENTERPRISE OR EVEN A RETAILER DELL VIEWS ITS PCS AS CONSUMER PRODUCTS LIKE TV SETS VCRS OR REFRIGERATORS WHILE DELL DOES DESIGN AND ASSEMBLE ITS OWN MACHINES ITS REAL CONTRIBUTION IS IN THE MAILORDER SYSTEM OF DISTRIBUTION AND MORE IMPORTANT THE GIGANTIC DATABASE OF CUSTOMER NAMES TITLES AND BUYING PREFERENCES GATHERED FROM YEARS OF TALKING TO PEOPLE OVER THE PHONE MR KOCHER SAYS DELL DOESN'T EVEN HAVE TO SELL PCS THE DATABASE ENGINE AS HE CALLS IT IS REVVED UP TO MOVE ALMOST ANYTHING FROM PORK BELLIES TO CUBIC ZIRCONIUM RINGS DELL LAST YEAR BEGAN SELLING A CATALOG OF OTHER COMPANIES' SOFTWARE AND PERIPHERALS AND IS EXPANDING THE OFFERING TO INCLUDE FAX MACHINES AND MUSIC COMPACT DISKS THIS WEEK IT ANNOUNCED THAT ITS AUGUST CATALOG WILL FEATURE THE SMALL HANDHELD PCS KNOWN AS PERSONAL DIGITAL ASSISTANTS WE'RE MORE LIKE MARY KAY COSMETICS THAN WE ARE LIKE GENERAL MOTORS MR KOCHER SAYS COMPAQ'S LIKE GENERAL MOTORS THEY'RE A SMOKESTACK COMPANY DELL'S IMAGE OF ITSELF AS A MAILORDER RETAILER RUNS DEEP TODAY THOUGH IT HASN'T ALWAYS BEEN SO FOR YEARS MR DELL SOMETHING OF A HIGHTECH JUNKIE HIMSELF BRISTLED AT THE SUGGESTION HE WAS MORE A RETAILER THAN A PC MAKER AS EVIDENCE TO THE CONTRARY HE WOULD POINT TO THE HIRING OF G GLENN HENRY A WIDELY RESPECTED INTERNATIONAL BUSINESS MACHINES CORP TECHNOLOGIST NOW ALL THAT HAS CHANGED MR DELL OFTEN CITES WALMART FOUNDER SAM WALTON AS A BUSINESS IDOL AS OPPOSED TO SAY MICROSOFT'S WILLIAM GATES AND DELL INVESTORRELATIONS PEOPLE HAVE BEGUN WOOING ANALYSTS WHO COVER RETAILING MR HENRY WHO WAS IN CHARGE OF OVERALL PRODUCT DEVELOPMENT HAS BEEN REASSIGNED TO A LESSER POST TO DATE NEITHER COMPANY'S STRATEGY HAS PROVED TO BE A CONSISTENT WINNER IN FACT EACH HAS TAKEN CUES FROM THE OTHER IN ATTEMPTING TO RECOVER FROM RECENT SETBACKS SUGGESTING THAT THE BEST STRATEGY MAY BE A BLEND OF THE TWO FOR ALL ITS TALK ABOUT COMPUTERS AS COMMODITIES FOR INSTANCE DELL HAS SUFFERED FROM ITS FAILURE TO PRODUCE COMPETITIVE NOTEBOOK COMPUTERS THE MARKET'S HOTTEST NICHE EVEN MORE EMBARRASSINGLY QUALITYCONTROL PROBLEMS FORCED DELL TO SCRAP ITS LATEST NOTEBOOKS BEFORE THEY WERE INTRODUCED PROMPTING A 20 MILLION DROP IN FISCAL FIRSTQUARTER EARNINGS AND CAUSING ITS STOCK PRICE TO PLUMMET MANY ANALYSTS VIEW THIS STUMBLE AS A REPUDIATION OF DELL'S TECHNOLOGYDOESN'TMATTER PHILOSOPHY THE COMPANY SEEMS TO BE TAKING THE HINT HIRING A WHIZBANG NEW PRODUCT TEAM FROM APPLE COMPUTER INC AND PLEDGING TO BEEF UP ITS RESEARCH AND DEVELOPMENT SPENDING AND PAY CLOSER ATTENTION TO MANUFACTURING MEANWHILE COMPAQ HIT ROCKBOTTOM TWO YEARS AGO AFTER IT REFUSED TO EXPAND BEYOND ITS TRADITIONAL DEALER NETWORK INTO THE BURGEONING MASSMERCHANDISING AND RETAIL MARKETS AND IT IGNORED THE GROWING DEMAND FOR LOWCOST PCS A FACT THAT MARKETINGDRIVEN COMPANIES PICKED UP ON QUICKLY MR BURKE'S PROLINEA TEAM ASSEMBLED IN SECRET BY CHAIRMAN BENJAMIN ROSEN PROVED THAT THE COMPANY COULD QUICKLY PRODUCE A LOWEND MACHINE LEADING TO A COUP IN OCTOBER 1991 THAT OUSTED COFOUNDER AND FORMER CEO JOSEPH ROD CANION SINCE THEN COMPAQ HAS BECOME MORE OUTWARDLY FOCUSED SELLING DIRECTLY TO JOE CONSUMER THROUGH ANY AND ALL CHANNELS INCLUDING MAIL ORDER A COMPANY ONCE DERIDED FOR ITS INFLATED PRICE PREMIUMS NOW IS VIEWED AS A LOWPRICE TRENDSETTER THE REST OF THE COMPUTER INDUSTRY MAY BE FORCED TO MAKE SIMILAR ADJUSTMENTS MANY COMPANIES THAT EMULATED DELL'S MODEL SUCH AS NORTHGATE COMPUTER CORP NOW ARE HURTING SIMILARLY ENGINEERINGORIENTED COMPANIES IN THE COMPAQ MOLD APPLE AND IBM FOR EXAMPLE ARE STRIVING TO BECOME MORE NIMBLE MARKETERS MANY EXPERTS GUESS THAT THE PROCESS OF MELDING AND BENDING COULD ACCELERATE IN COMING MONTHS IF PC SALES SLOW DOWN AS SOME ANALYSTS ARE NOW PREDICTING THAT FOR EXAMPLE WOULD LEAVE COMPAQ WITHOUT THE UNIT VOLUME TO FEED ITS MUCHPRIZED MANUFACTURING MACHINE AND WOULD FORCE DELL TO REJIGGER ITS PRODUCT LINE AT A TIME OF SHRINKING DEMAND I THINK WE'RE LOOKING AT A TROUGH IN THE CYCLE SAYS JAMES POYNER A TECHNOLOGY ANALYST AT OPPENHEIMER & CO IN NEW YORK MR POYNER WORRIES ABOUT THE FATE OF BOTH COMPANIES IF THE INDUSTRY HITS A WALL I'VE SEEN THIS MOVIE TOO MANY TIMES BEFORE I THINK IT'S FRAGILE RIGHT NOW NO MATTER WHAT HAPPENS THOUGH IT ISN'T LIKELY TO TRIGGER A CEASEFIRE IN TEXAS WHERE THE TWO COMPANIES CONTINUE TO SNIPE AT EACH OTHER THEY'RE GOING TO BE SUFFERING WARNS MR PFEIFFER AT COMPAQ WE'RE THE COMPANY THAT UPSET THE APPLE CART SAYS THOMAS MARTIN DELL'S MARKETING CHIEF I THINK THEY'RE WIMPS 9307020090 930702 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION APLUS COMMUNICATIONS INC AN INITIAL OFFERING OF 33 MILLION COMMON SHARES VIA MORGAN KEEGAN & CO CLINICOM INC AN OFFERING OF 845500 COMMON SHARES VIA PACIFIC GROWTH EQUITIES MAGMA COPPER CO AN OFFERING OF 15 MILLION SHARES OF CONVERTIBLE PREFERRED STOCK PLUS AN OVERALLOTMENT OPTION FOR AN ADDITIONAL 225000 CONVERTIBLE PREFERRED SHARES VIA GOLDMAN SACHS & CO STARBUCKS CORP AN OFFERING OF 70 MILLION PRINCIPAL AMOUNT OF CONVERTIBLE SUBORDINATED DEBENTURES DUE 2003 VIA ALEX BROWN & SONS INC AND WERTHEIM SCHRODER & CO 9307020089 930702 TECHNOLOGY BRIEF MICROSOFT CORP COMPANY WINS 125 MILLION FROM COPYRIGHT LAWSUIT A LOS ANGELES FEDERAL COURT JUDGE AWARDED MICROSOFT CORP REDMOND WASH 125 MILLION IN A COPYRIGHT INFRINGEMENT LAWSUIT AGAINST A FORMER LICENSEE BEC COMPUTER CO AND TWO TAIWANBASED AFFILIATES MICROSOFT SAID BEC WAS LICENSED TO DISTRIBUTE MICROSOFT SOFTWARE TOGETHER WITH PERSONAL COMPUTERS SOLD UNDER THE BEC NAME THE COMPANIES ALLEGEDLY MADE AND SOLD THE SOFTWARE SEPARATELY FROM ITS MACHINES TRIGGERING THE APRIL 1992 LAWSUIT THE AWARD BY JUDGE DAVID KENYON FOR TREBLE DAMAGES IS BELIEVED BY MICROSOFT TO BE THE LARGEST EVER GRANTED IN A SOFTWARE PIRACY SUIT IN A US COURT A REPRESENTATIVE FOR BEC WASN'T AVAILABLE FOR COMMENT 9307020088 930702 ISSUE OF SPEECH BY GAYS IN MILITARY IS TACKLED WASHINGTON THE BATTLE OVER GAYS IN THE MILITARY IS COMING DOWN TO WHAT CAN BE SAID IN PRIVATE PRESSURED BY THE WHITE HOUSE TO PRODUCE AN ACCEPTABLE WAY OF LIFTING THE GAY BAN BEFORE PRESIDENT CLINTON LEAVES FOR TOKYO NEXT WEEK AIDES TO DEFENSE SECRETARY LES ASPIN AND THE JOINT CHIEFS OF STAFF WORKED FRANTICALLY TO FIND LANGUAGE ACCEPTABLE TO BOTH THE MILITARY AND GAY GROUPS IF AN AGREEMENT CAN BE REACHED ON PRIVATE SPEECH MR ASPIN COULD PRESENT A PROPOSAL TO THE PRESIDENT AS EARLY AS TODAY HOWEVER REP BARNEY FRANK D MASS WHO DISCUSSED THE ISSUE WITH AIDES TO BOTH MR CLINTON AND MR ASPIN SAID EVEN IF SOMETHING GOES OVER TO THE WHITE HOUSE FRIDAY IT'S NOT GOING TO BE THE FINAL PRODUCT HE SAID HE EXPECTS THE WHITE HOUSE TO ANNOUNCE A POLICY DURING THE WEEK OF JULY 12 LAST WEEK THE JOINT CHIEFS AGREED TO A BROAD DON'T ASK DON'T TELL FRAMEWORK BUT THEY ARE BALKING AT ALLOWING GAYS IN THE MILITARY TO DISCUSS PRIVATELY THEIR SEXUAL ORIENTATION BELIEVING IT WOULD LEAD TO A HAZY POLICY ALMOST IMPOSSIBLE TO IMPLEMENT AND SURE TO LEAD TO LITIGATION 9307020087 930702 BUSINESS BRIEF AMAX INC ALL SERIES B PREFERRED SHARES WILL BE REDEEMED ON SEPT 1 AMAX INC NEW YORK SAID ITS BOARD VOTED TO REDEEM ALL OUTSTANDING SHARES OF THE MINING AND ENERGY CONCERN'S SERIES B CONVERTIBLE PREFERRED STOCK ON SEPT 1 BASED ON THE CURRENT CALL PRICE OF 50 A SHARE AMAX SAID THE TOTAL REDEMPTION PRICE OF THE 234566 OUTSTANDING CONVERTIBLE PREFERRED SHARES WILL BE 117 MILLION EACH SHARE WILL CONTINUE TO BE CONVERTIBLE AT THE OPTION OF THE HOLDER INTO 131004 AMAX COMMON SHARES UNTIL THE CLOSE OF BUSINESS ON AUG 27 THE QUARTERLY DIVIDEND OF 75 CENTS A PREFERRED SHARE WILL BE PAID SEPT 1 TO SHAREHOLDERS OF RECORD AUG 10 AMAX ALSO SAID THAT BECAUSE OF THE CONTINUING IMPACT OF LOW ALUMINUM AND OTHER METAL PRICES ITS DIRECTORS HAD VOTED TO OMIT ITS THIRDQUARTER DIVIDEND ON COMMON STOCK NORMALLY PAYABLE SEPT 1 THE COMPANY ALSO OMITTED ITS SECONDQUARTER DIVIDEND AND CUT ITS FIRSTQUARTER DIVIDEND TO 10 CENTS FROM 20 CENTS IN 1992 9307020086 930702 WHO'S NEWS EMPIRE BLUE CROSS NAMES BRIGGS TO BE CHAIRMAN NEW YORK EMPIRE BLUE CROSS & BLUE SHIELD STILL FACING QUESTIONS ABOUT ITS FINANCIAL RECORDKEEPING NAMED A FORMER METROPOLITAN LIFE INSURANCE CO EXECUTIVE TO BE CHAIRMAN THE APPOINTMENT OF PHILIP BRIGGS WHO RETIRED AS CHIEF FINANCIAL OFFICER AND VICE CHAIRMAN OF METROPOLITAN LIFE IN MARCH REQUIRES REGULATORY APPROVAL THE 65YEAROLD MR BRIGGS WILL ALSO SERVE AS CHIEF EXECUTIVE OFFICER UNTIL A PERMANENT CEO IS SELECTED BY THE BOARD DONALD M MORCHOWER WILL CONTINUE AS EMPIRE'S CHIEF OPERATING OFFICER IN MIDJUNE EMPIRE BLUE CROSS AND BLUE SHIELD AGREED TO CHANGE TOP MANAGEMENT IN LIGHT OF THE RECORDKEEPING CHARGES ONE OF THE LARGEST NONPROFIT INSURERS IN THE US EMPIRE BLUE CROSS AND BLUE SHIELD HAS COME UNDER FIRE IN RECENT WEEKS FROM NEW YORK STATE REGULATORS AND A US SENATE SUBCOMMITTEE FOR ALLEGEDLY OVERSTATING LOSSES IN ITS FINANCIAL RECORDS IN 1989 1990 AND 1991 MR BRIGGS SUCCEEDS HAROLD VOGT WHO HAS SERVED AS INTERIM CHAIRMAN SINCE MAY ALBERT CARDONE RESIGNED AS CHAIRMAN IN MAY WHEN ALLEGATIONS ABOUT RECORDKEEPING PROBLEMS FIRST SURFACED 9307020085 930702 LETTERS TO THE EDITOR GOOD REASONS BEHIND FDA'S ARDUOUS RULES DR LEONARD G WILSON'S JUNE 24 EDITORIAL PAGE ARTICLE FDA RED TAPE DOOMS TRANSPLANT DRUG IS AN EXAMPLE OF TO PARAPHRASE ADMIRAL FARRAGUT DAMN THE REGULATIONS THIS DRUG WORKS THE FOOD DRUG AND COSMETIC ACT AND ITS SUPPORTING GOOD MANUFACTURING PRACTICES GMP REGULATIONS MANDATE HOW DRUGS BIOLOGICS AND MEDICAL DEVICES ARE TO BE MANUFACTURED THEY RIGHTFULLY DO NOT APPLY DIFFERENT MANUFACTURING STANDARDS TO ACADEMIC INSTITUTIONS THAN THOSE APPLIED TO COMMERCIAL ENTITIES THOUGH I HAVE NO FIRSTHAND KNOWLEDGE OF THE FDA INSPECTION AT THE UNIVERSITY OF MINNESOTA AND ITS SUBSEQUENT BIZARRE DEMANDS THAT THE DRUG BE PROPERLY MANUFACTURED I IMAGINE THE INSPECTORS FOUND VARIOUS GMP VIOLATIONS THAT CAN BE ADDRESSED ONLY BY THE UNIVERSITY ERECTING A WELLDESIGNED MANUFACTURING FACILITY AND INSTITUTING APPROPRIATE QUALITY CONTROL AS A REGULATORY PROFESSIONAL IN A SMALL STARTUP BIOTECHNOLOGY COMPANY HAVING SEEN PHARMACEUTICALS MADE IN AN ACADEMIC SETTING I FEEL AN INFORMED INDIVIDUAL WOULD DEEM THE FDA'S DEMANDS AS REASONABLE THE FDA'S REQUIREMENTS CAN BE ARDUOUS BUT THEY ARE WELL KNOWN DURING DEVELOPMENT OF A DRUG A MANUFACTURER IS EXPECTED TO PERIODICALLY MEET WITH THE FDA TO DETERMINE WHAT WILL BE REQUIRED TO OBTAIN PRODUCT APPROVAL ALSO THE FDA DOES NOT BECOME MORE TOLERANT AFTER PRODUCT APPROVAL THE REQUIREMENT TO REPORT SAFETY DATA IS MORE STRINGENT FOR A PERIOD OF THE TIME IMMEDIATELY AFTER DRUG APPROVAL SINCE INCREASED USE OF A DRUG WILL REVEAL ADDITIONAL INFORMATION REGARDING THE DRUG'S SAFETY PROFILE 9307020084 930702 PEPSICO IS TESTING HUNGARY'S THIRST FOR GREEN' GOODS BY ERNEST BECK SPECIAL TO THE WALL STREET JOURNAL BUDAPEST WITH PEPSICO INC'S INTRODUCTION THIS WEEK OF PLASTIC BOTTLES THAT ARE BOTH RETURNABLE AND RECYCLABLE THE BATTLE FOR HUNGARY'S BOOMING SOFTDRINK MARKET ENTERED A NEW GREEN ERA IF WELLRECEIVED THE MOVE COULD HERALD A MAJOR SHIFT IN MARKETING TACTICS THROUGHOUT THE REGION SINCE HUNGARY IS CONSIDERED A SOPHISTICATED TEST MARKET FOR FORMER EAST BLOC COUNTRIES THERE HAVE BEEN GROWING INDICATIONS THAT ENVIRONMENTAL AWARENESS IS CREEPING INTO CONSUMER BEHAVIOR AT LEAST IN HUNGARY PLASTIC RETURNABLE BOTTLES MAY BE CLEANED AND REFILLED UP TO 25 TIMES BEFORE BEING RECYCLED ON THE OTHER HAND TRADITIONAL POLYETHYLENE TERAPHTHALATE OR PET SOFTDRINK BOTTLES ARE USED ONCE AND THROWN AWAY IN HUNGARY DUE TO A LACK OF RECYCLING FACILITIES CURRENTLY ONLY GLASS BOTTLES CAN BE RETURNED THE RECYCLABLE BOTTLES ARE MADE FROM THE SAME RESIN AS PET BOTTLES BUT ARE MORE THAN TWICE AS HEAVY TO BE MORE DURABLE AND TO WITHSTAND HIGHTEMPERATURE CLEANING PEPSI IS LAUNCHING THE NEW BOTTLES FOR ITS TWOLITER FLAGSHIP SOFTDRINK BRANDS WITH A 1 MILLION AD BLITZ AND A MARKETING CAMPAIGN INCLUDING 600 OUTDOOR BILLBOARDS AND 30SECOND AND 45SECOND SPOTS ON HUNGARY'S TWO NATIONAL TV CHANNELS PACKAGING AND POINTOFSALE STANDS ALSO HAVE BEEN REDESIGNED INCORPORATING A BOOMERANG LOGO TO DRIVE HOME THE RETURNABILITY THEME INCENTIVES FOR CONSUMERS INCLUDE DISCOUNT PRICING AND REFUNDS WHEN BOTTLES ARE BROUGHT BACK WE'RE CERTAIN THIS DEVELOPMENT WILL MARK A DRAMATIC SHIFT IN CONSUMER PREFERENCES THAT WILL HAVE A SNOWBALL EFFECT ON THE WHOLE SOFTDRINK INDUSTRY SAID ROBERT JACKSON AREA VICE PRESIDENT FOR PEPSICOLA INTERNATIONAL HUNGARY THE BOTTLES ALREADY SELL IN 16 COUNTRIES IN FACT INITIALLY THEY WILL BE IMPORTED FROM HOLLAND UNTIL PRODUCTION IN HUNGARY GETS UP TO SPEED IF SUCCESSFUL IN HUNGARY MR JACKSON ADDED PEPSI WILL INTRODUCE THEM THROUGHOUT EASTERN EUROPE POLLY HOWES A SPOKESMAN FOR ARCHRIVAL COCACOLA CO SAID COKE DOESN'T HAVE A REFILLABLE PLASTIC BOTTLE IN USE IN HUNGARY THE COMPANY IS BELIEVED TO BE RETOOLING ITS HUNGARIAN FACILITIES TO PRODUCE PLASTIC RETURNABLE BOTTLES BUT MS HOWES SAID SHE COULDN'T COMMENT BECAUSE THE COMPANY'S PACKAGING STRATEGY IS PROPRIETARY HOWEVER JOHN CURNOW GENERAL MANAGER OF THE COCACOLA FRANCHISE IN HUNGARY SAID THE COMPANY IS NOT NOW PLANNING TO OFFER PLASTIC RETURNABLE BOTTLES THERE IS DEFINITELY A GROWNING ENVIRONMENTAL CONSCIOUSNESS AND AWARENESS IN HUNGARY HE SAID BUT WE ARE GOING IN A DIFFERENT DIRECTION BY PROMOTING AND ENCOURAGING THE USE OF RECYCLABLE GLASS BOTTLES THAT IS THE ENVIRONMENTALLY FRIENDLY ROUTE WE WANT TO TRACK RIGHT NOW MR CURNOW SAID COKE IS PROMOTING GLASS BY INTRODUCING A SMALLER EIGHTOUNCE GLASS BOTTLE AND BY CUTTING THE DEPOSIT ON GLASS BOTTLES TO 12 FORINTS 13 CENTS FROM 21 FORINTS EACH COMPANY IS INVESTING MORE THAN 100 MILLION TO MODERNIZE PRODUCTION DISTRIBUTION AND MARKETING IN HUNGARY AS PART OF AN ALLOUT BID TO DOMINATE THE COUNTRY'S SOFTDRINK MARKET 9307020083 930702 RENO PICKS HOGAN TO HEAD US PROBE OF BNL CASE WASHINGTON ATTORNEY GENERAL JANET RENO APPOINTED HER FORMER TOP PROSECUTOR IN MIAMI JOHN HOGAN TO HEAD THE GOVERNMENT'S INVESTIGATION OF THE 21 BILLION BANCA NAZIONALE DEL LAVORO FRAUD CASE MR HOGAN 43 YEARS OLD WAS MS RENO'S CHIEF ASSISTANT IN THE DADE COUNTY DISTRICT ATTORNEY'S OFFICE FOR NINE YEARS UNTIL JOINING THE JUSTICE DEPARTMENT LAST MONTH THE CASE INVOLVES CHARGES THAT CHRISTOPHER P DROGOUL THE FORMER MANAGER OF BNL'S ATLANTA OFFICE ISSUED UNAUTHORIZED LOANS THAT WERE USED TO BUILD IRAQ'S MILITARY MACHINE BEFORE THE GULF WAR HOWARD HEISS A CAREER JUSTICE DEPARTMENT ATTORNEY FROM MANHATTAN WILL TAKE OVER THE PROSECUTION OF MR DROGOUL WHOSE TRIAL IS SCHEDULED FOR THE FALL THE NEW TEAM APPEARS TO BE PART OF A CHANGE IN THE DEPARTMENT'S APPROACH TO THE SPRAWLING CASE UNDER THE BUSH ADMNINISTRATION THE DEPARTMENT REJECTED A CONTENTION BY JUDGE MARVIN H SHOOB A DISTRICT COURT JUDGE IN ATLANTA THAT BNL OFFICIALS MAY HAVE SECRETLY ENCOURAGED MR DROGOUL'S ACTIVITIES 9307020082 930702 RIVERBOAT GAMBLING LEGAL IN INDIANA STATE DECLARES INDIANAPOLIS THE STATE OF INDIANA LEGALIZED RIVERBOAT GAMBLING FOR UP TO 11 SITES INCLUDING FIVE SPOTS CLOSE TO CHICAGO THE LEGISLATION WHICH PASSED THE GENERAL ASSEMBLY AS PART OF A BUDGET BILL AUTHORIZES FIVE RIVERBOATS ON LAKE MICHIGAN FIVE ALONG THE OHIO RIVER AND ONE ON LAKE PATOKA IN SOUTHERN INDIANA THE FIRST RIVERBOATS COULD BE OPERATING AS SOON AS NEXT YEAR BACKERS SAY A GOVERNOR'S OFFICE SPOKESMAN SAID THE GAMBLING COULD PROVIDE ABOUT 40 MILLION DURING THE NEXT TWO YEARS THE LAW ESTABLISHES A SEVENMEMBER COMMISSION TO OVERSEE THE INDUSTRY AND GRANT LICENSES BEFORE THE BOATS GO INTO SERVICE IN CITIES AND COUNTIES LOCAL GOVERNMENTS MUST GAIN APPROVAL THROUGH REFERENDUMS GARY IND A FINANCIALLY STRAPPED CITY NEIGHBORING CHICAGO IS EXEMPT FROM THE LOCAL APPROVAL REQUIREMENT BECAUSE IT APPROVED GAMBLING IN A PUBLIC REFERENDUM BEFORE THE STATE LEGISLATION WAS PASSED THE INDIANA LAW COMES AS CHICAGO AUTHORITIES SEEK APPROVAL TO ALLOW GAMBLING ON FIVE RIVERBOATS THAT PLAN REMAINS TIED UP IN THE STATE LEGISLATURE 9307020081 930702 ASSETS OF MONEY FUNDS SKIDDED IN LATEST WEEK WASHINGTON ASSETS OF MONEY MARKET MUTUAL FUNDS TUMBLED 1406 BILLION TO 56379 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 640 RETAIL MONEY MARKET MUTUAL FUNDS FELL BY 601 BILLION TO 38290 BILLION THE TRADE GROUP SAID ASSETS OF 400 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY FELL BY 460 BILLION TO 30274 BILLION ASSETS OF 240 RETAIL TAXEXEMPT FUNDS FELL BY 141 BILLION TO 8017 BILLION ASSETS OF THE 268 INSTITUTIONAL MONEY MARKET FUNDS FELL BY 805 BILLION TO 18088 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 215 TAXABLE MONEY MARKET FUNDS FELL BY 740 BILLION TO 16090 BILLION ASSETS OF 53 TAXEXEMPT FUNDS FELL BY 6532 MILLION TO 1998 BILLION RESHUFFLING OF PORTFOLIOS CHARACTERISTIC FOR THE END OF THE QUARTER COMBINED WITH A SUDDEN HALFAPERCENTAGE POINT RUNUP IN THE FEDERAL FUNDS RATE DRAINED A SUBSTANTIAL AMOUNT OF MONIES OUT OF THE MONEY MARKET FUNDS SAID JACOB DREYER THE INSTITUTE'S CHIEF ECONOMIST 9307020080 930702 BUSINESS BRIEF MICROTEST INC SECONDPERIOD LOSS SEEN OPERATING CHIEF IS NAMED MICROTEST INC CITING SALES LITIGATION COSTS AND OTHER CHARGES SAID IT EXPECTS TO REPORT A LOSS FOR THE SECOND QUARTER ENDING TOMORROW THE PHOENIXBASED COMPANY WHICH SUPPLIES DIAGNOSTIC AND CERTIFICATION TOOLS FOR LOCAL AREA NETWORK CABLING SAID IT WOULD REDUCE ITS WORK FORCE 20 AND ENACT STRINGENT COST CONTROLS ACROSS ALL DEPARTMENTS THE COMPANY SAID IT WOULD TAKE A NUMBER OF CHARGES IN THE CURRENT QUARTER TO ACCOUNT FOR THE EMPLOYEE LAYOFFS WHICH NUMBER BETWEEN 30 AND 35 PEOPLE A COMPANY REPRESENTATIVE SAID MICROTEST ADDED THAT IT NAMED RICHARD G MEISE 57 YEARS OLD CHIEF OPERATING OFFICER AND THAT IT CONTINUES TO SEEK A SUCCESSOR TO JOHN SHOMER 49 WHO RESIGNED AS PRESIDENT IN MAY IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY MICROTEST SHARES CLOSED AT 5875 DOWN 875 CENTS NEWS OF THE ANTICIPATED LOSS WAS RELEASED AFTER THE MARKET CLOSED 9307020079 930702 EUROPEAN NATIONS SET STOCK SALES IN PHONE CONCERNS BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE SCHEDULE FOR PRIVATIZING SOME OF WESTERN EUROPE'S MAIN TELEPHONE COMPANIES IS FIRMING UP IN THE NETHERLANDS THE GOVERNMENT APPOINTED LONDON MERCHANT BANK NM ROTHSCHILD & SONS LTD AS ITS ADVISER ON THE SALE IN THE FIRST HALF OF NEXT YEAR OF SHARES IN STATEOWNED ROYAL PTT NETHERLANDS NV THE INITIAL SALE ACCORDING TO A DUTCH FINANCE MINISTRY SPOKESMAN IS INTENDED TO RAISE ROUGHLY 3 BILLION GUILDERS US158 BILLION FOR A MINORITY STAKE TWO TO THREE ADDITIONAL SALES IN COMING YEARS WOULD REDUCE THE STATE'S HOLDING TO ONETHIRD HE SAYS THE STOCK ISSUE WILL BE OPEN TO INVESTORS WORLDWIDE IN GERMANY THE GOVERNMENT TUESDAY GOT THE EXPECTED GOAHEAD FROM THE OPPOSITION SOCIAL DEMOCRATIC PARTY TO START SELLING SHARES IN DEUTSCHE BUNDESPOST TELEKOM IN MID1996 THE SALE TO RAISE 10 BILLION MARKS US593 BILLION TO 15 BILLION MARKS WILL BE THE FIRST OF TWO TO THREE STOCK ISSUES THAT BY 1998 OR 1999 WOULD END UP WITH THE GOVERNMENT HOLDING JUST OVER 50 OF THE SHARES THE CONSERVATIVE GOVERNMENT AND ITS OPPOSITION HAD BEEN WRANGLING FOR MONTHS OVER WHETHER TO GO AHEAD WITH THE SALE AND TUESDAY'S BROAD ACCORD STILL LEAVES THE DETAILS OF THE PRIVATIZATION TO BE NEGOTIATED THROUGH THIS AUTUMN IN ITALY WEDNESDAY THE GOVERNMENT SET UP A COMMITTEE TO SCHEDULE THE SALE OF ADDITIONAL SHARES IN STET SPA THE STATECONTROLLED TELECOMMUNICATIONS HOLDING COMPANY SIMILAR PHONECOMPANY STOCK SALES HAVE ALREADY BEEN PLANNED FOR LATER THIS YEAR IN GREECE AND FOR NEXT YEAR IN DENMARK AND IN LONDON THE BRITISH GOVERNMENT HAS SET JULY 16 AS THE DEADLINE FOR INTERNATIONAL APPLICATIONS TO BUY ITS REMAINING 22 STAKE IN BRITISH TELECOMMUNICATIONS PLC EXCEPT IN THE CASE OF BT ANALYSTS SAY THERE AREN'T YET ENOUGH DETAILS OF THE WEST EUROPEAN SALES AVAILABLE FOR INVESTORS TO DECIDE WHETHER TO BUY BUT GENERALLY INSTITUTIONAL INVESTORS AROUND THE WORLD ARE KEENLY WATCHING THE SALES SAYS LONDONBASED ANALYST PETER ROWE OF NIKKO EUROPE PLC TELECOMMUNICATIONS COMPANIES ARE OFTEN POPULAR BECAUSE THEY'RE VERY BIG VERY POWERFUL AND SOME INVESTORS DO TEND TO USE THEM AS PROXIES FOR INVESTING IN THE LOCAL ECONOMY 9307020078 930702 SOUTHWESTERN PS PUTS VALUE ON BID FOR EL PASO ELECTRIC BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL SOUTHWESTERN PUBLIC SERVICE FINALLY DISCLOSED WHAT IT IS WILLING TO PAY TO OWN EL PASO ELECTRIC CO IT MADE A FORMAL OFFER TO ACQUIRE THE AILING UTILITY NOW IN CHAPTER 11 BANKRUPTCY PROCEEDINGS FOR 22 BILLION IN CASH DEBT AND NEW STOCK SOUTHWESTERN'S PROPOSAL APPEARS TO OFFER GREATER VALUE TO SOME OF EL PASO'S CREDITOR GROUPS THAN A RIVAL 21 BILLION BID FROM CENTRAL & SOUTH WEST CORP BUT COMMON SHAREHOLDERS WILL BE WIPED OUT UNDER SOUTHWESTERN'S PLAN PREFERRED SHAREHOLDERS SOUTHWESTERN SAID IN A NEWS RELEASE WILL RECEIVE THE ONLY DISTRIBUTION TO EQUITY HOLDERS SOUTHWESTERN OF AMARILLO TEXAS HAS BEEN BIDDING AGAINST CENTRAL & SOUTH WEST OF DALLAS FOR MORE THAN A MONTH BUT HADN'T PUBLICLY DISCLOSED DETAILS OF ITS OFFER FOR EL PASO UNTIL NOW SO WHILE IT KEPT TELLING VARIOUS PARTIES THAT ITS OFFER FOR EL PASO WAS BETTER THAN CENTRAL & SOUTH WEST'S BID OF NEW STOCK AND SECURITIES IT NEVER DISCLOSED PRECISELY HOW EL PASO HAS BEEN OPERATING UNDER BANKRUPTCYCOURT PROTECTION FROM ITS CREDITORS IT ISN'T ANY COINCIDENCE THAT SOUTHWESTERN'S ANNOUNCEMENT CAME ONLY DAYS AFTER CENTRAL & SOUTH WEST RECEIVED PUBLIC ENDORSEMENTS OF ITS OWN PLAN FROM TWO OF EL PASO'S KEY CREDITOR GROUPS WE'VE DETERMINED THAT IT IS IMPORTANT TO GET THIS INFORMATION INTO THE PUBLIC VIEW SO A LARGE GROUP OF INTERESTED PARTIES CAN SEE WHAT IT IS THAT WE'RE OFFERING SAID DOYLE BUNCH SOUTHWESTERN'S EXECUTIVE VICE PRESIDENT REPRESENTATIVES OF CENTRAL & SOUTH WEST COULDN'T IMMEDIATELY BE REACHED SPECIFICALLY SOUTHWESTERN SAID ITS OFFER CONSISTS OF 706 MILLION IN CASH 464 MILLION IN NEW FIRSTMORTGAGE BONDS 218 MILLION IN NEW COMMON STOCK 2054 MILLION IN POLLUTIONCONTROL BONDS AND OTHER DEBT AND 593 MILLION AS THE CURRENT VALUE OF RENEGOTIATED LEASES FOR THE PALO VERDE NUCLEAR PLANT UNDER SOUTHWESTERN'S PLAN EL PASO'S UNSECURED CREDITORS WILL RECEIVE 274 MILLION IN CASH 104 MILLION IN NEW COMMON STOCK AND 40 MILLION IN POLLUTION CONTROL BONDS THAT WORKS OUT TO 98 CENTS ON THE DOLLAR SOUTHWESTERN SAID CENTRAL AND SOUTH WEST OFFERED THE GROUP 925 CENTS PREFERRED SHAREHOLDERS WILL GET 80 OF WHAT THEY'RE OWED MOSTLY IN NEW COMMON STOCK CENTRAL'S PLAN OFFERED THEM 75 IN NEW STOCK SECURED CREDITORS WILL RECEIVE ALL OF WHAT THEY CLAIM PLUS UNPAID INTEREST AND INTEREST ON INTEREST TOTALING 913 MILLION PRIORITY CLAIMS WILL RECEIVE 100 OF WHAT THEY'RE OWED IN CASH ANY OFFER FOR EL PASO MUST BE APPROVED BY THE BANKRUPTCY COURT 9307020077 930702 WORLD MARKETS EUROPEAN RATE CUTS FUEL STOCKPRICE GAINS TRIMMED BY PROFITTAKERS TOKYO SHARES CLIMB A WALL STREET JOURNAL NEWS ROUNDUP EUROPEAN INTERESTRATE CUTS THURSDAY PROVIDED THE FUEL FOR STOCKPRICE GAINS THOUGH SOME WERE FLEETING AS MANY INVESTORS QUICKLY SNATCHED PROFITS FRANKFURT SHARES GAINED BUT SLID BACK FROM HIGHS ON PROFITTAKING AFTER GERMANY'S CENTRAL BANK CUT TWO MAIN INTEREST RATES LONDON PRICES FELL SHARPLY BECAUSE THE GERMAN BUNDESBANK'S EASING OF MONETARY POLICY WAS CONSIDERED MODEST TOKYO STOCKS WERE PUSHED UP SHARPLY BY FUTURESLED BUYING WHILE TURNOVER LANGUISHED AT A FOURMONTH LOW AS INVESTORS AWAITED POLITICAL DEVELOPMENTS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10632 UP 038 REFLECTING HIGHER ASIA/PACIFIC AND EUROPEAN MARKETS AND LOWER MARKETS IN THE AMERICAS FORESTPRODUCTS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 13927 UP 374 OR 28 WITH POTLATCH OF THE US POSTING A 63 GAIN IN ITS LOCAL CURRENCY TOYS STOCKS TRAILED AT 10891 DOWN 193 OR 17 WITH MATTEL OF THE US SLIDING 53 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 112 POINTS TO 28888 THE FT 30STOCK INDEX DECLINED 89 POINTS TO 22620 VOLUME WAS 6517 MILLION SHARES UP FROM 5505 MILLION SHARES A DAY EARLIER THE LONDON MARKET OPENED BULLISHLY BUT RAN INTO TROUBLE AFTER THE GERMAN CENTRAL BANK CUT ITS DISCOUNT RATE TO 675 FROM 725 AND THE LOMBARD RATE TO 825 FROM 85 THE LOMBARD CUT IN PARTICULAR SIGNALED THAT THE SLOW PACE OF GERMAN MONETARY EASING HADN'T CHANGED TALK SWIRLED THAT THE NEXT BUNDESBANK RATE REDUCTION WOULDN'T OCCUR UNTIL AFTER THE CENTRAL BANK'S AUGUST HOLIDAY SINKING THE GERMAN BONDFUTURES CONTRACT THAT IN TURN SPARKED A SELLOFF IN LONDON OF THE SEPTEMBER STOCKINDEX FUTURES CONTRACT ULTIMATELY CAUSING THE STOCK MARKET TO POST LOSSES LATESESSION ACTIVITY ALSO REFLECTED PORTFOLIO ADJUSTMENTS AHEAD OF THE END OF THE ACCOUNT PERIOD TODAY IN FRANKFURT THE DAX 30STOCK INDEX ROSE 900 POINTS TO 170663 RETREATING FROM THE INTRADAY HIGH OF 171525 IN THE LAST HALFHOUR PRICES CLIMBED STEADILY THROUGHOUT THE MORNING ON EXPECTATIONS OF THE GERMAN INTERESTRATE CUT AND CONTINUED TO ADVANCE FOLLOWING THE GERMAN BUNDESBANK'S ANNOUNCEMENT THEN INVESTORS TOOK PROFITS AND THE DAX LOST ALMOST 9 POINTS THE RATE REDUCTIONS HAD BEEN ANTICIPATED AND FACTORED INTO SHARE PRICES PRICES LATE IN THE FRANKFURT SESSION WERE DRIVEN DOWN BY ARBITRAGE BETWEEN DAX FUTURES CONTRACTS AND THE UNDERLYING STOCKS IN PARIS STOCKS ENDED WEAKER AFTER A FLURRY OF LATE PROFITTAKING THAT DEFLATED A RALLY IN WHICH STOCKS HAD RISEN AS MUCH AS 11 STOCKS ROSE IN ANTICIPATION OF THE GERMAN RATE CUT AND GAINED MOMENTUM WHEN THE SWISS AND SWEDISH CENTRAL BANKS TRIMMED THEIR INTEREST RATES ONCE THE GERMAN RATE NEWS EMERGED PARIS STOCKS ROSE SOME MORE BUT INVESTORS BACKED OFF AS THE MAIN INDEX APPROACHED A RESISTANCE LEVEL SOME PARTICIPANTS WERE DISAPPOINTED THAT THE BANK OF FRANCE DIDN'T CUT ITS RATES ELSEWHERE IN EUROPE AMSTERDAM SHARES SEESAWED FIRST RISING BROADLY ON EXPECTATIONS OF RATE CUTS AND A HIGHER DOLLAR AND FALLING BACK TO END MIXED IN MILAN THE GERMAN EASING GAVE STOCKS A LATE BOOST FROM THE DAY'S LOWS THOUGH PRICES ENDED WEAKER AS THE MARKET AWAITED AN ITALIAN RATE REDUCTION MADRID PRICES CLOSED SLIGHTLY HIGHER AFTER OPENING HIGHER IN ANTICIPATION OF THE GERMAN EASING SKYROCKETING AFTER THE GERMAN RATES WERE CUT AND THEN GIVING WAY TO PROFITTAKING STOCKHOLM EQUITIES ROSE FOLLOWING THE RATE CUTS BY SWEDEN GERMANY AND OTHER EUROPEAN COUNTRIES IN ZURICH A WAVE OF LATE PROFITTAKING BLUNTED STRONG GAINS THAT BEGAN WITH ENTHUSIASM ABOUT AN UNEXPECTED SWISS RATE REDUCTION IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 4658 POINTS WEDNESDAY JUMPED 33461 OR 17 TO 1992461 ALSO THE INTRADAY HIGH ON FRIDAY THE NIKKEI FELL 30365 POINTS TO CLOSE THE MORNING SESSION AT 1962096THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 220 MILLION SHARES DOWN FROM 2334 MILLION SHARES A DAY EARLIER AND THE LIGHTEST TURNOVER SINCE MARCH 1 ADVANCING ISSUES OUTNUMBERED RETREATING ISSUES 693292 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH EASED 101 POINTS WEDNESDAY CLIMBED 1778 OR 11 TO 159803 INVESTORS KEPT TO THE SIDELINES AHEAD OF NEXT WEEK'S TOKYO SUMMIT OF THE GROUP OF SEVEN INDUSTRIAL NATIONS AND THE JULY 18 BALLOTING FOR JAPANESE PARLIAMENTARY SEATS THURSDAY'S BROAD GAINS FOR STOCKS WERE ATTRIBUTED MOSTLY TO INDEXLINKED BUYING BY ARBITRAGERS INDEX FUTURES WERE BOOSTED BY HEAVY INTEREST FROM A US BROKERAGE FIRM AND FOREIGN PENSION FUNDS SENTIMENT WAS BOLSTERED A BIT BY THE EASING OF THE JAPANESE YEN IN CURRENCY MARKETS AND RENEWED SPECULATION THAT THE BANK OF JAPAN WILL CUT ITS OFFICIAL DISCOUNT RATE AS EARLY AS TOMORROW JAPAN IS UNDER PRESSURE TO STIMULATE ITS SLUGGISH ECONOMY AHEAD OF THE G7 MEETING THAT STARTS WEDNESDAY IN SYDNEY STOCKS BEGAN AUSTRALIA'S NEW FISCAL YEAR BY RISING TO THE HIGHEST CLOSE SINCE MAY 28 PRICES WERE BOOSTED ACROSS THE BOARD BY AN INSTITUTIONAL INVESTOR'S PORTFOLIO PURCHASE OF 40 MILLION AUSTRALIAN DOLLARS US267 MILLION OF 29 STOCKS INCLUDING MINING AND INDUSTRIAL ISSUES IN HONG KONG A BURST OF LATE BUYING PUSHED SHARES HIGHER MANILA PRICES ROSE IN HEAVY VOLUME BUOYED BY A EUROBOND FLOTATION OF THE DEVELOPMENT BANK OF THE PHILIPPINES THAT WAS WELLRECEIVED BY FOREIGN INVESTORS SEOUL STOCKS ROSE FOR THE THIRD DAY IN A ROW IN A TECHNICAL REBOUND AMONG CORPORATE DEVELOPMENTS IN MILAN FERRUZZI FINANZIARIA PLUNGED 445 LIRE OR 10 TO 40175 LIRE 26 US CENTS CONTINUING THE RECENT SELLOFF CONCERNS MOUNTED ABOUT THE DEBT OF THE BIG AGRICULTURAL AND CHEMICAL COMPANY A DAY AFTER IT REVISED ITS 1992 CONSOLIDATED LOSS TO 167 TRILLION LIRE 108 BILLION INITIALLY REPORTED AS A 152 TRILLIONLIRA DEFICIT SOME ANALYSTS QUESTIONED WHETHER FERRUZZI COULD SURVIVE ERIDANIA BEGHINSAY PLUMMETED 240 OR 57 TO 4000 AND IN PARIS THE STOCK LOST 8 FRENCH FRANCS OR 1 TO 777 FRANCS ON SPECULATION THAT THE PARISBASED FOOD UNIT OF FERRUZZI COULD BE SOLD ERIDANIA A DAY EARLIER JUMPED 83 IN PARIS TRADING AS INVESTORS ANTICIPATED A BIDDING WAR FERRUZZI WHICH IS AMID A BANKLED REORGANIZATION HAS MENTIONED A POSSIBLE SALE OF ERIDANIA BUT ANALYSTS NOTED FERRUZZI NEEDS ERIDANIA FOR STEADY EARNINGS AND CASH FLOW FIAT COMMON SANK 330 OR 51 TO 6160 AFTER THE AUTO MAKER TOLD THE ANNUAL MEETING A DAY EARLIER THAT 1993 IS LIKELY TO BE ANOTHER DIFFICULT YEAR FOR FIAT 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 9307020076 930702 FINANCING BUSINESS ICO INC ICO INC SAID UNDERWRITERS ARE OFFERING 35 MILLION COMMON SHARES AT 675 EACH THE PIPELINE INSPECTION AND COATINGS COMPANY SAID IN HOUSTON THAT IT WILL USE THE PROCEEDS TO REDUCE DEBT FOR WORKING CAPITAL AND FOR CAPITAL EXPENDITURES ICO SAID IT HAD ABOUT 32 MILLION SHARES OUTSTANDING FOLLOWING A 1FOR5 REVERSE STOCK SPLIT THE UNDERWRITER IS JEFFERIES & CO 9307020075 930702 ECONOMY MANUFACTURING CONTRACTED IN JUNE NEW SURVEY FINDS BY COLLEEN AE SLEVIN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE MANUFACTURING SECTOR CONTRACTED IN JUNE ACCORDING TO A SURVEY OF PURCHASING MANAGERS SUGGESTING THAT A SLOW ECONOMIC RECOVERY STILL LIES AHEAD THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT SAID ITS INDEX FELL TO 483 IN JUNE FROM 511 IN MAY IT IS THE SECOND TIME IN THREE MONTHS THAT THE INDEX HAS SHOWN A SETBACK IN THE MANUFACTURING ECONOMY THE INDEX PROVIDES A SNEAK PREVIEW OF HOW MANUFACTURERS FARED LAST MONTH AND IS BASED UPON A SURVEY OF THE ASSOCIATION'S MEMBERS GENERALLY READINGS OF 50 OR BETTER INDICATE THAT MANUFACTURING IS EXPANDING WHILE THOSE BELOW 50 SIGNAL A DECLINE THE DECLINE IS CAUSE FOR CONCERN BUT IT DOESN'T MEAN WE'RE GOING INTO RECESSION SAID SURVEY CHIEF ROBERT J BRETZ WHO IS ALSO DIRECTOR OF CORPORATE PURCHASING FOR PITNEY BOWES INC THE ASSOCIATION'S EMPLOYMENT INDEX SLID BACKWARD AGAIN IN JUNE BY THE LARGEST AMOUNT IN ALMOST A YEAR AND A HALF WITH ONLY FIVE OF THE 20 INDUSTRIES SURVEYED REPORTING AN INCREASE IN JOBS NEW ORDERS WERE ALSO DOWN IN JUNE WHILE PRODUCTION CONTINUED TO EXPAND JUST SLIGHTLY THE SURVEY FOUND MR BRETZ SAID HE WAS SURPRISED BY A RISE IN JUNE'S PRICE INDEX BUT EXPECTS THAT THE ADVANCE WAS THE LAST DYING GASP OF AN INCREASE INFLATED STEEL PRICES RESULTING FROM REDUCED AMOUNTS OF UNDERPRICED FOREIGN STEEL AND FORWARD BUILDING SCHEDULES IN THE AUTOMOBILE INDUSTRY IN ANTICIPATION OF AUTUMN CONTRACT NEGOTIATIONS ARE MOSTLY TO BLAME FOR THE INDEX RISE HE SAID SEPARATELY THE COMMERCE DEPARTMENT SAID CONSTRUCTION SPENDING AFTER ADJUSTMENT FOR INFLATION INCREASED 01 IN MAY TO 3864 BILLION ALSO THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS FELL 11000 IN THE WEEK ENDED JUNE 26 TO 340000 FROM A REVISED 351000 THE PREVIOUS WEEK THE FOURWEEK MOVING AVERAGE OF CLAIMS WHICH IS A BETTER MEASURE OF LABORMARKET CONDITIONS FELL 1750 TO 344750 FIGURES IN ALL THE REPORTS ARE ADJUSTED FOR SEASONAL CHANGES HERE ARE THE COMMERCE DEPARTMENT'S FIGURES FOR CONSTRUCTION SPENDING IN BILLIONS OF DOLLARS AT SEASONALLY ADJUSTED ANNUAL RATES 9307020074 930702 WHO'S NEWS PENWEST LTD PENWEST LTD BELLEVUE WASH CURTIS P LINDLEY RESIGNED FROM THE BOARD OF THIS CHEMICAL CONCERN MR LINDLEY 68 YEARS OLD WAS FORMERLY PENWEST'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER NO SUCCESSOR WAS ELECTED 9307020073 930702 CHRYSLER EXTENDS INCENTIVE OFFER DETROIT CHRYSLER CORP EXTENDED THROUGH SEPT 30 ITS INCENTIVE PROGRAM THAT WAS ORIGINALLY SCHEDULED TO END WEDNESDAY THE AUTO MAKER IS OFFERING TWO INCENTIVE PLANS THE FIRST OFFERS FINANCING RATES AS LOW AS 29 ON CONTRACTS UP TO 24 MONTHS OR 69 ON A 60MONTH CONTRACT THE SECOND OFFERS 400 TO 2000 CASH BACK ON CERTAIN VEHICLES 9307020072 930702 MCDONNELL UNIT FOR HELICOPTERS TAKEN OFF BLOCK SOME SAY MOVE MAY MEAN DEBT CUTS CAN BE MADE WITHOUT BIG ASSET SALES BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL MCDONNELL DOUGLAS CORP TOOK ITS HELICOPTER UNIT OFF THE MARKET SUGGESTING TO SOME ANALYSTS THAT IT MAY BE ABLE TO MEET ITS DEBTREDUCTION PLAN WITHOUT FURTHER MAJOR ASSET SALES THE ST LOUIS AEROSPACE COMPANY SAID IT HAD INTENSIVE EVALUATIONS OF A NUMBER OF SERIOUS PROSPECTS BUT DECIDED SELLING THE BIG HELICOPTER BUSINESS OR PLACING IT IN A PARTNERSHIP ISN'T IN THE BEST INTERESTS OF MCDONNELL DOUGLAS OR ITS CUSTOMERS MCDONNELL DOUGLAS HAD SOUGHT ONLY US PARTNERS FOR THE MILITARY LINE WHICH INCLUDES THE AH64 APACHE ATTACK HELICOPTER AND A LONGBOW UPGRADE PROGRAM FOR IT THE COMPANY SOUGHT BUYERS OR PARTNERS INTERNATIONALLY FOR SUCH COMMERCIAL LINES AS ITS MD 500 SERIES WHILE A COMPANY SPOKESWOMAN SAID THE DECISION TO REMOVE THE BUSINESS FROM THE MARKET WAS NOT FOR LACK OF INTEREST MCDONNELL DOUGLAS' HELICOPTER UNIT HAD LITTLE APPEAL AMID A GENERAL SLUMP IN THE AEROSPACE INDUSTRY MCDONNELL DOUGLAS IS AN OUTSTANDING COMPANY BUT IT'S A VERY TOUGH TIME TO TRY TO SELL AN ASSET LIKE THAT SAID RHET FLATER EXECUTIVE DIRECTOR OF THE AMERICAN HELICOPTER SOCIETY AN ALEXANDRIA VA TRADE GROUP A MORE IMPORTANT FACTOR IN WITHDRAWING THE MESA ARIZ HELICOPTER BUSINESS MAY BE AN IMPROVEMENT IN COMPANY FINANCES RECENTLY THE COMPANY EARLIER HAD BEEN COUNTING ON DIVESTITURES TO RAISE ABOUT 500 MILLION IN ITS DRIVE TO CUT 1 BILLION FROM DEBT THIS YEAR THE SPOKESWOMAN SAID THAT WHILE THE 1 BILLION REDUCTION REMAINS A GOAL MCDONNELL DOUGLAS MAY RELY MORE HEAVILY ON ITS CONTINUING OPERATIONS TO REACH IT THE MIX MAY CHANGE SHE SAID ADDING THAT THE SALE OR PARTNERSHIP OF THE HELICOPTER UNIT WASN'T ESSENTIAL TO ACHIEVING OUR 1 BILLION CASH FLOW GOAL FOR 1993 ANALYSTS AGREED WHEN THEY FIRST PUT IT ON THE BLOCK THEY COULD HAVE USED THE MONEY SAID PETER ASERITIS OF NEW YORKBASED FIRST BOSTON CORP BUT IN THE YEAR SINCE MCDONNELL DOUGLAS BEGAN SHOPPING ITS HELICOPTER BUSINESS HE SAID THE COMPANY HAS MANAGED TO SELL OTHER ASSETS AND IMPROVE ITS CASH FLOW IN A WAY THAT WILL ALLOW IT TO MEET ITS DEBTREDUCTION TARGET ANYWAY MCDONNELL DOUGLAS HAS MET ABOUT ONETHIRD OF ITS 1 BILLION TARGET SO FAR THE SPOKESWOMAN SAID INDUSTRY OBSERVERS SAID THE LAST HELICOPTER COMPANY TO TALK WITH MCDONNELL DOUGLAS ABOUT ITS MESA OPERATIONS WAS THE SIKORSKY AIRCRAFT DIVISION OF UNITED TECHNOLOGIES CORP TALKS REPORTEDLY BROKE DOWN OVER THE PRICE AND SIKORSKY'S UNWILLINGNESS TO KEEP OPERATIONS IN ARIZONA A UNITED TECHNOLOGIES SPOKESMAN COULDN'T BE REACHED TO COMMENT SOME ANALYSTS BELIEVE THE PRESSURE TO RAISE MONEY THROUGH THE SALE OF MCDONNELL DOUGLAS'S MISSILE BUSINESS IS NOW LESS INTENSE ALTHOUGH IT'S STILL POSSIBLE SUCH A SALE WILL PLAY A PART IN FUTURE DEBT REDUCTION PEOPLE FAMILIAR WITH THE SITUATION HAVE SAID GENERAL MOTORS CORP'S HUGHES AIRCRAFT CO UNIT DISCUSSED BUYING MCDONNELL DOUGLAS'S TOMAHAWK SEALAUNCHED CRUISE MISSILE LINE PARTIES SAID TO BE INTERESTED IN OTHER MISSILE LINES INCLUDE LORAL CORP AND TEXAS INSTRUMENTS INC HUGHES TEXAS INSTRUMENTS AND LORAL DECLINED TO COMMENT MCDONNELL DOUGLAS HASN'T CONFIRMED THAT ITS MISSILE BUSINESS IS ON THE BLOCK MR ASERITIS SAID THAT MCDONNELL DOUGLAS STOCK REMAINS ON HIS BUY LIST AND THAT HE EXPECTS OPERATING EARNINGS BEFORE EXTRAORDINARY GAINS OF 220 A SHARE THE COMPANY SAID THAT SEPARATE FROM THE PLANS TO HOLD ON TO THE 3800WORKER HELICOPTER UNIT AND REABSORB IT INTO ITS MCDONNELL DOUGLAS AEROSPACE OPERATION IT WOULD TAKE UNUSUAL GAINS TOTALING ABOUT 57 MILLION OR 146 A SHARE IN THE JUSTENDED QUARTER IN THE 1992 SECOND QUARTER MCDONNELL DOUGLAS HAD NET INCOME OF 38 MILLION OR 1 A SHARE ON REVENUE OF 489 BILLION THE COMPANY SAID THE GAINS IN THIS YEAR'S QUARTER INCLUDE 43 MILLION OR 111 A SHARE FROM THE REVERSAL OF PART OF A 15 BILLION CHARGE TAKEN IN THE 1992 FIRST QUARTER FROM THE ADOPTION OF A RETIREMENTBENEFITS ACCOUNTING STANDARD THE REMAINING 14 MILLION OR 35 CENTS A SHARE WAS FROM SUCCESSFUL RESOLUTION OF A FEDERAL TAX ISSUE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MCDONNELL DOUGLAS SHARES FELL 2125 TO 72 BUT MR ASERITIS OF FIRST BOSTON SAID HE WAS SURPRISED THE MARKET REACTED TO THE NEWS AT ALL COMPANY EXECUTIVES HAD SUGGESTED THE HELICOPTER UNIT WOULD BE RETAINED HE SAID MOST RECENTLY AT LAST MONTH'S PARIS AIR SHOW THE COMPANY DOESN'T BREAK OUT HELICOPTER REVENUE SEPARATELY BUT CONFIRMS IT WAS ABOUT 750 MILLION IN 1992 TOTAL SALES WERE 1738 BILLION ANALYSTS WERE GENERALLY OPTIMISTIC THAT MCDONNELL DOUGLAS THE US'S LARGEST DEFENSE CONTRACTOR AND A MAKER OF JETLINERS WOULD BE ABLE TO MEET ITS DEBTREDUCTION GOALS BY RELYING MORE HEAVILY ON OPERATIONS I THINK THEY'LL DO IT PAINEWEBBER INC'S JACK MODZELEWSKI SAID THE BEST WAY TO MAKE YOUR MORTGAGE PAYMENT IS THROUGH YOUR PAYCHECK NOT BY SELLING THE LIVING ROOM FURNITURE ROY J HARRIS JR CONTRIBUTED TO THIS ARTICLE 9307020071 930702 BIG BOARD ACTS AGAINST FIRM AND 11 PEOPLE BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NEW YORK STOCK EXCHANGE SAID IT TOOK DISCIPLINARY ACTION AGAINST ONE FIRM AND 11 INDIVIDUALS FOR ALLEGED VIOLATIONS OF BIG BOARD RULES AND FEDERAL SECURITIES LAWS THE EXCHANGE SAID JOHN P COREA UNION NJ WAS PERMANENTLY BARRED FOR ACTIONS THAT CAUSED A CLEARING FIRM TO LOSE MORE THAN 656632 THE FIRM WASN'T IDENTIFIED MR COREA OPERATED AS A 2 BROKER ON THE EXCHANGE HANDLING SMALL ORDERS FOR OTHER FIRMS BUT NOT AUTHORIZED TO ENTER ORDERS FOR AN ACCOUNT IN WHICH HE HAD AN INTEREST IN MID1990 MR COREA ENTERED A SERIES OF TRADES FOR WHICH HE HAD NO CUSTOMER EVENTUALLY RUNNING THE PURCHASES UP TO 4 MILLION HE DIDN'T MAKE REQUIRED MARGIN PAYMENTS FOR THE PURCHASES WALKED OFF THE FLOOR AND CAUSED THE FIRM HE IDENTIFIED AS THE BUYER TO LOSE THE 656632 ALTHOUGH MR COREA WAS SUSPENDED FOR THAT CONDUCT IN MID1991 HE TOLD ROBERT MAHUSKE PRESIDENT OF MURPHEY MARSEILLES SMITH & NAMMACK INC A SMALL EXCHANGE MEMBER AND CLEARING FIRM THAT HE HAD SETTLED HIS DIFFERENCES WITH THE EXCHANGE AND PROPOSED TO HAVE CUSTOMERS OPEN ACCOUNTS AT THE FIRM WHILE HE WOULD HAVE DISCRETIONARY AUTHORITY TO MAKE TRADES THE REPORT SAID MR MAHUSKE AGREED TO THE PROPOSAL WITHOUT CHECKING WITH THE EXCHANGE MR COREA SUBSEQUENTLY PERSUADED A CUSTOMER TO DEPOSIT 50000 IN AN ACCOUNT AND IN TWO WEEKS MADE MORE THAN 5 MILLION IN DAYTRADING PURCHASES AND SALES GENERATING MORE THAN 3000 IN COMMISSIONS SEVERAL OF THE TRADES VIOLATED EXCHANGE MARGIN REQUIREMENTS MURPHEY MARSEILLES WAS FINED 37500 FOR ALLOWING HIM TO PLACE THE ORDERS AND FOR FAILING TO REQUIRE MARGIN PAYMENTS AMONG OTHER VIOLATIONS MR MAHUSKE ALLENDALE NJ WAS BARRED THREE MONTHS IN A SUPERVISORY POSITION THE TWO DIDN'T ADMIT OR DENY ALLEGATIONS UNLESS OTHERWISE NOTED NONE OF THE PARTIES COULD BE REACHED FOR COMMENT OR HAD ANY COMMENT THE EXCHANGE DISCIPLINED SIX FORMER BROKERS FOR SALES PRACTICE VIOLATIONS SCOTT WILSON HATHAWAY COLUMBIA SC WAS BARRED FOR FIVE YEARS FOR MAKING UNAUTHORIZED AND EXCESSIVE TRANSACTIONS EXERCISING DISCRETION WITHOUT WRITTEN AUTHORIZATION AND OTHER VIOLATIONS HE DIDN'T ADMIT OR DENY THE FINDINGS CHARLES FEENSTRA LAKE OSWEGO ORE WAS BARRED FOR FIVE YEARS FOR GIVING A CUSTOMER INACCURATE DOCUMENTS PROMISING TO REPAY CUSTOMER LOSSES AND CIRCUMVENTING SUPERVISORY PROCEDURES HE DIDN'T ADMIT OR DENY THE ALLEGATIONS MARTIN FAUST SARASOTA FLA WAS BARRED FOR FIVE YEARS FOR MAKING UNSUITABLE TRADES IN ACCOUNTS AND MAKING DISCRETIONARY TRANSACTIONS WITHOUT WRITTEN AUTHORIZATIONS HE DIDN'T ADMIT OR DENY THE ALLEGATIONS JOHN ERICSSON DARIEN CONN WAS BARRED FOR ONE YEAR FOR MAKING DISCRETIONARY TRADES WITHOUT WRITTEN AUTHORIZATION AS WELL AS EXCESSIVE TRADES HE DIDN'T ADMIT OR DENY THE ALLEGATIONS CYNTHIA BECK OMAHA NEB WAS BARRED FOR SIX MONTHS SHE DIDN'T ADMIT OR DENY SHE SIGNED CUSTOMERS' NAMES WITHOUT THEIR KNOWLEDGE AND MADE UNAUTHORIZED TRADES STEVEN HAMMER SANTA BARBARA CALIF WAS BARRED FOR FOUR WEEKS FOR ACCEPTING ORDERS FROM A PERSON OTHER THAN THE CUSTOMER AND MAKING DISCRETIONARY TRADES WITHOUT WRITTEN AUTHORIZATION HE DIDN'T ADMIT OR DENY CHARGES TERENCE A FARLEY NEW YORK A FORMER CLERK WAS BARRED FOR ONE YEAR AFTER A CONTESTED HEARING FOR ALTERING PRICES OF PROGRAM TRADES MADE BY HIS MEMBER FIRM ALAN DOREN NEW YORK A FORMER ASSISTANT MARGIN MANAGER WAS SUSPENDED FOUR MONTHS IN A SUPERVISORY CAPACITY HE DIDN'T ADMIT OR DENY THAT HE FAILED TO ENSURE THAT CUSTOMERS DEPOSITED MARGIN REQUIRED FOR NEW TRANSACTIONS AND OTHER ACCOUNT MANAGING ERRORS THE EXCHANGE'S BOARD ACCEPTED A STIPULATION AND CONSENT TO THE PENALTY REVERSING THE HEARING PANEL'S REJECTION OF THE STIPULATION GEORGE MARTIN WEST SPRINGFIELD MASS WAS PERMANENTLY BARRED FOR MISAPPROPRIATING 11035 OF CUSTOMER FUNDS HE DIDN'T ADMIT OR DENY THE FINDINGS MR MARTIN COULDN'T BE REACHED ANOTHER PERSON BY THAT NAME IN WEST SPRINGFIELD AN INSURANCE AND BANKING INDUSTRY CONSULTANT SAID HE WASN'T RELATED 9307020070 930702 INTERNATIONAL BRIEF RHONEPOULENC SA FRENCH CONCERN PLANS SPLIT OF ITS ORDINARY A SHARES THE STATECONTROLLED GROUP SAID THE SPLIT WOULD EFFECTIVELY REDUCE THE NOMINAL VALUE OF ITS ORDINARY SHARES TO 25 FRENCH FRANCS 434 A SHARE FROM 100 FRANCS SHAREHOLDERS WILL RECEIVE FOUR NEW SHARES FOR EACH OLD ORDINARY SHARE RHONEPOULENC SAID THE SPLIT WOULD APPLY TO PREFERRED INVESTMENT CERTIFICATES AS WELL THE COMPANY SAID THE SPLIT WILL ALLOW FOR GREATER STOCK LIQUIDITY AND BRING HARMONY WITH ITS AMERICAN DEPOSITARY RECEIPTS TRADED IN NEW YORK AFTER THE SPLIT RHONEPOULENC'S ADRS WILL REPRESENT EACH ORDINARY SHARE ON A ONEFORONE BASIS CURRENTLY EACH ADR REPRESENTS ONEFOURTH OF AN ORDINARY SHARE A SMALLER FACE VALUE IN ITS SHARES WOULD PRESUMABLY FACILITATE A STATE SELLOFF OF RHONEPOULENC WHICH IS WIDELY BELIEVED TO BE ONE OF THE GOVERNMENT'S LEADING CANDIDATES FOR DIVESTITURE THIS YEAR 9307020069 930702 BUSINESS BRIEF AMERITECH MICHIGAN BELL UNIT RAISES DIRECTORY ASSISTANCE CHARGE AMERITECH SAID ITS MICHIGAN BELL UNIT BOOSTED THE CHARGE FOR A DIRECTORY ASSISTANCE CALL TO 35 CENTS FROM 22 CENTS WHICH IT SAID WILL GENERATE 18 MILLION IN ADDITIONAL ANNUAL REVENUE THE ADDITIONAL REVENUE WILL OFFSET DECREASES IN CHARGES THAT LONGDISTANCE COMPANIES PAY MICHIGAN BELL FOR ACCESS TO THE LOCAL PHONE NETWORK IN THE FIRST PHASE OF A PLAN APPROVED BY THE MICHIGAN PUBLIC SERVICE COMMISSION THE MONTHLY ALLOWANCE OF FREE CALLS WILL BE REDUCED TO EIGHT FROM 20 MICHIGAN BELL SAID OVER 70 OF ITS 35 MILLION CUSTOMERS WON'T BE AFFECTED BY THE HIGHER CHARGE BECAUSE THEY MAKE FIVE OR FEWER DIRECTORY ASSISTANCE CALLS EACH MONTH IN A SECOND PHASE THE COMPANY EXPECTS TO IMPLEMENT IN 1994 THE CALLING ALLOWANCE WOULD BE REDUCED TO FIVE OR FEWER CALLS A MONTH AND THE PERCALL CHARGE WOULD RISE TO 45 CENTS MICHIGAN BELL SAID THE COMPANY LAST RAISED THE PRICE FOR DIRECTORY ASSISTANCE IN 1981 AMERITECH BASED IN CHICAGO IS ONE OF SEVEN REGIONAL BELL TELEPHONE COMPANIES 9307020068 930702 TAMBRANDS PRESIDENT GETS DEMOTION TWO KEY EXECUTIVES ARE FORCED OUT BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL TAMBRANDS INC DEMOTED CHARLES J CHAPMAN PRESIDENT AND CHIEF OPERATING OFFICER AND FORCED OUT TWO OTHER KEY EXECUTIVES IN AN EFFORT TO SHORE UP ITS OPERATIONS IN THE WAKE OF LAST MONTH'S OUSTER OF MARTIN FC EMMETT AS CHIEF EXECUTIVE OFFICER THE MAKER OF TAMPAX TAMPONS DESCRIBED THE DEPARTURES OF PAUL E KONNEY SENIOR VICE PRESIDENT AND GENERAL COUNSEL AND JAMES G MITCHELL GROUP VICE PRESIDENT WHO HAD PRESIDED OVER THE US SALES DIVISION AS RESIGNATIONS BUT A PERSON FAMILIAR WITH THE SITUATION SAID THE EXECUTIVES WERE ASKED TO RESIGN MR CHAPMAN A NABISCO BRANDS VETERAN WHO WAS HIRED BY MR EMMETT WAS GIVEN THE NEW TITLES OF CORPORATE EXECUTIVE VICE PRESIDENT AND PRESIDENT OF TAMBRANDS NORTH AMERICA TAKING OVER THE RESPONSIBILITIES OF MR MITCHELL THEY'RE LOOKING TO CHARLIE CHAPMAN TO FIX THE US SITUATION THAT'S HIS CHALLENGE SAID THE PERSON CLOSE TO THE COMPANY A COMPANY SPOKESMAN SAID THAT WHILE TAMBRANDS SEARCHES FOR A NEW CHIEF EXECUTIVE IT WON'T SIMULTANEOUSLY BE LOOKING TO FILL THE PRESIDENT'S POST HE DECLINED TO COMMENT FURTHER ABOUT THE ANNOUNCEMENT MR MITCHELL'S DEPARTURE WAS APPARENTLY PROMPTED BY THE DECISION THAT MR CHAPMAN WAS THE BETTER MAN FOR HIS JOB IT WAS BETWEEN HIM AND MITCHELL AND WE NEEDED ONE PERSON TO DO THAT JOB SAYS THE PERSON CLOSE TO THE SITUATION PEOPLE FAMILIAR WITH THE COMPANY SAY THE LATEST MOVES ARE PART OF A HOUSECLEANING BY HOWARD WENTZ JR THE LONGTIME TAMBRANDS OUTSIDE DIRECTOR WHO SUCCEEDED MR EMMETT AS CHAIRMAN AIMED AT TURNING AROUND THE COMPANY'S FLAGGING TAMPON BUSINESS AT THE TIME OF MR EMMETT'S DISMISSAL THE COMPANY DISCLOSED THAT ITS SECONDQUARTER EARNINGS WOULD BE SIGNIFICANTLY BELOW LAST YEAR'S 72 CENTS A SHARE AND THAT FULLYEAR EARNINGS WOULD BE BELOW LAST YEAR'S 306 A SHARE EARLIER IN THE YEAR MR EMMETT HAD BEEN FORECASTING 15 EARNINGS GROWTH THE MOVES COME AMID SHAREHOLDER LAWSUITS ALLEGING THAT MR EMMETT MISLED INVESTORS ABOUT THE COMPANY'S HEALTH COMPANY OFFICIALS HAVE BEEN ESPECIALLY CONCERNED ABOUT MR KONNEY AND HIS ROLE IN A MARCH 23 MEETING TAMBRANDS HELD WITH ANALYSTS THE ANALYSTS INTERPRETED MR EMMETT'S REMARKS AS RESERVATIONS ABOUT THE COMPANY'S ABILITY TO REACH ITS 15 EARNINGS GROWTH TARGET SENDING TAMBRANDS SHARES PLUNGING 11 OVER THE NEXT TWO DAYS IN A SUBSEQUENT INTERVIEW MR KONNEY INSISTED THAT MR EMMETT HAD REAFFIRMED THE 15 GROWTH TARGET AT THE MEETING AN ACCOUNT ANALYSTS DISPUTED THE DAY BEFORE THE MEETING MR KONNEY EXERCISED OPTIONS TO BUY 9128 SHARES AND IMMEDIATELY SOLD THE SHARES AT A HIGHER PRICE 6175 EACH REALIZING A 327942 PROFIT MR KONNEY WHO HAS BEEN ON EXTENDED LEAVE FROM THE COMPANY SINCE MR EMMETT'S DEPARTURE WAS ANNOUNCED JUNE 2 SAID HE LEFT TAMBRANDS VOLUNTARILY WHEN MARTIN EMMETT RESIGNED I DECIDED I WOULDN'T STAY WITH TOP MANAGEMENT AND GO THROUGH ANOTHER CHANGE IN THE DIRECTION OF TAMBRANDS HE SAID I DIDN'T RESIGN BECAUSE OF THE STOCK OPTION EXERCISE MY MARCH STOCK OPTION EXERCISE WAS ENTIRELY PROPER AND IN ACCORDANCE WITH COMPANY POLICIES MESSRS CHAPMAN AND MITCHELL COULDN'T BE REACHED MR CHAPMAN WILL REPORT TO MR WENTZ AND WILL HAVE DIRECT RESPONSIBILITY FOR NORTH AMERICAN OPERATIONS WHICH REPRESENT A SIGNIFICANT PORTION OF THE COMPANY'S BUSINESS BUT THE MOVE CLEARLY REDUCES MR CHAPMAN'S RESPONSIBILITIES UNDER MR EMMETT HE HAD SERVED AS THE OPERATIONAL POINT MAN OVERSEEING SALES AND MARKETING BOTH IN THE US AND ABROAD ACCORDING TO FORMER EXECUTIVES MR CHAPMAN SUPPORTED SHARP CUTS IN MARKETING EXPENDITURES AND HIGHER RETAIL PRICES ON THE THEORY THAT TAMPAX'S LOYAL CONSUMERS WOULDN'T DEFECT MR CHAPMAN WAS SO CONVINCED OF CONSUMERS' BRAND LOYALTY THAT THROUGH LATE 1990 AND 1991 HE BECAME AN ARDENT PROPONENT OF A PROGRAM TO PERSUADE RETAILERS TO RAISE PRICES IN ORDER TO IMPROVE THEIR PROFITS ON TAMPAX THE EFFORT WAS QUIETLY DROPPED AMID OPPOSITION FROM RETAILERS MANY OF WHOM HAD TRADITIONALLY SOLD TAMPAX FOR ONLY A SLIM PROFIT TO ATTRACT CUSTOMERS EVIDENCE WAS ALSO GROWING THAT HIGHER RETAIL PRICES WERE HURTING TAMPAX'S MARKET SHARE WHICH HAS DECLINED SHARPLY DURING THE PAST YEAR MEANTIME TAMBRANDS SAID IT IS CONSOLIDATING ITS INTERNATIONAL OPERATIONS INTO ONE UNIT UNDER ALAIN STRASSER FORMER GROUP VICE PRESIDENT EUROPE WHO WILL BECOME GROUP VICE PRESIDENT INTERNATIONAL THE COMPANY SAID CONSTANTIN B OHANIAN CURRENTLY GROUP VICE PRESIDENT INTERNATIONAL WILL ALSO RETAIN THAT TITLE THESE CHANGES REFLECT THE BOARD'S DETERMINATION TO ADDRESS OPERATIONAL ISSUES MR WENTZ SAID IN A STATEMENT WE ARE STREAMLINING THE ORGANIZATION REDUCING LAYERS OF MANAGEMENT AND INCREASING ACCOUNTABILITY TAMBRANDS SHARES CLOSED AT 46625 UP 125 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9307020067 930702 TECHNOLOGY BRIEF MEDIMMUNE INC CONCERN'S VACCINE KEPT MICE FROM GETTING LYME DISEASE A VACCINE DEVELOPED BY MEDIMMUNE INC PREVENTED LYME DISEASE IN MICE INDICATES A STUDY PUBLISHED IN YESTERDAY'S JOURNAL OF EXPERIMENTAL MEDICINE MEDIMMUNE INSERTED A GENE FROM THE LYME DISEASE MICROORGANISM INTO A BACTERIUM BACILLE CALMETTEGUERIN BCG USED IN THE TUBERCULOSIS VACCINE THE GENE CAUSES THE BCG TO PRODUCE THE SAME PROTEIN THAT COATS THE SURFACE OF THE LYME DISEASE MICROORGANISM WHEN INJECTED AS A VACCINE THE BCG ACTIVATES THE BODY'S IMMUNE SYSTEM TO ATTACK AND KILL IT WHEN THE BODY IS LATER EXPOSED TO A REAL LYME DISEASE MICROORGANISM THE IMMUNE SYSTEM RECOGNIZES THE PROTEIN AND REMEMBERS HOW TO KILL THE ORGANISM ACCORDING TO DAVID M MOTT MEDIMMUNE VICE PRESIDENT OF BUSINESS DEVELOPMENT AND PLANNING IN THE STUDY MICE WHO WERE GIVEN THE VACCINE AND THEN INJECTED WITH THE LYME DISEASE ORGANISM WERE PROTECTED AGAINST THE DISEASE MICE VACCINATED WITH REGULAR BCG BECAME INFECTED MEDIMMUNE PLANS TO SUBMIT AN APPLICATION LATER THIS YEAR TO THE FOOD AND DRUG ADMINISTRATION TO TEST THE VACCINE IN HUMANS 9307020066 930702 BUSINESS BRIEF MARRIOTT CORP SHAREHOLDER GROUP IS DENIED REQUEST TO ENJOIN MEETING MARRIOTT CORP SAID A DELAWARE CHANCERY COURT JUDGE DENIED A REQUEST BY A GROUP OF ITS PREFERRED SHAREHOLDERS TO ENJOIN THE COMPANY'S ANNUAL MEETING SCHEDULED FOR JULY 23 THE GROUP WAS SEEKING TO DELAY THE MEETING AND PUT OFF A SHAREHOLDER VOTE ON MARRIOTT'S PROPOSAL TO SPLIT THE COMPANY INTO TWO PIECES A REALESTATE ARM AND A HOTEL MANAGEMENT ARM THE GROUP WHICH HOLDS 217 MILLION OF FOUR MILLION PREFERRED SHARES OUTSTANDING ARGUED THAT THEIR INTERESTS WERE DAMAGED BY THE TERMS OF THE PROPOSAL BUT JUDGE WILLIAM ALLEN SAID THE GROUP FAILED TO SHOW A REASONABLE LIKELIHOOD OF SUCCESS UPON THE MERITS OF THEIR CLAIM THAT MARRIOTT INTENTIONALLY MISLED THEM BY MAKING FALSE STATEMENTS IN AN ANNOUNCEMENT OF THE PROPOSED SPLIT ATTORNEYS FOR THE GROUP WHICH INCLUDES HARVARD COLLEGE AND UNION BANK OF SWITZERLAND DIDN'T RETURN REQUESTS FOR COMMENT MARRIOTT SAID THAT FROM THE OUTSET WE HAVE MAINTAINED THAT THE CLAIMS MADE BY THESE PREFERRED SHAREHOLDERS WERE WITHOUT MERIT 9307020065 930702 FOREIGN EXCHANGE DOLLAR FALLS AGAINST MOST CURRENCIES IN EUROPE BUT RISES IN RELATION TO YEN BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR ENDED A DAY OF HECTIC TRADING DOWN AGAINST MOST EUROPEAN CURRENCIES ON PROFIT TAKING AFTER A LONGAWAITED CUT IN GERMAN INTEREST RATES BUT IT ROSE AGAINST THE YEN ON RUMORS THAT JAPAN MIGHT BE THE NEXT MAJOR NATION TO TRIM ITS RATES WHILE THE MARK ADVANCED MODERATELY VS MOST OF ITS CONTINENTAL COUNTERPARTS IT FAILED TO DO SO AGAINST THE POUND BECAUSE OF EXPECTATIONS THAT BRITISH INTEREST RATES AREN'T HEADED LOWER STERLING WAS THE PRINCIPAL BENEFICIARY OF THE GERMAN RATE CUT TRADERS SAID LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16933 MARKS DOWN FROM 17035 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10745 YEN UP FROM 107 YEN STERLING WAS TRADING AT 15160 UP FROM 14920 ABOUT MIDDAY ON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10765 YEN AND AT 16927 MARKS THE MARKET IS AWAITING FRIDAY'S REPORT ON US JUNE EMPLOYMENT DEALERS SAID THE REPORT WHICH TYPICALLY IS VIEWED AS THE MOST IMPORTANT US ECONOMIC INDICATOR IN A MONTH MAY GIVE THE DOLLAR NEW DIRECTION THEY ADDED THE CENTRAL EVENT DRIVING CURRENCY MARKETS THURSDAY WAS THE GERMAN CENTRAL BANK'S EASING OF KEY GERMAN INTEREST RATES PARTICIPANTS SAID THE BUNDESBANK CUT ITS DISCOUNT RATE TO 675 FROM 725 AND ITS LOMBARD RATE TO 825 FROM 850 THE DISCOUNT RATE IS THE LOWEST RATE AT WHICH THE CENTRAL BANK WILL LEND FUNDS THE LOMBARD RATE SERVES AS THE EFFECTIVE CEILING ON OVERNIGHT MONEYMARKET RATES CENTRAL BANKS IN SEVEN OTHER EUROPEAN NATIONS ALSO TRIMMED KEY RATES THURSDAY HELMUT SCHLESINGER THE BUNDESBANK'S PRESIDENT CITED SLOWING GROWTH IN GERMANY'S MONEY SUPPLY AND INFLATION AS WELL AS BONN'S RECENTLY PROPOSED PACKAGE OF BUDGET CUTS AS FACTORS PERMITTING THE EASING HE ALSO MENTIONED GERMANY'S WEAK ECONOMY AND THE STABILITY OF THE MARK AS CONSIDERATIONS ALTHOUGH A NATION'S CURRENCY ORDINARILY WOULD TEND TO WEAKEN AFTER ITS INTEREST RATES ARE CUT THE MARK'S GENERAL FIRMNESS THURSDAY WASN'T OVERLY SURPRISING TRADERS SAID EXPECTATIONS THAT THE BUNDESBANK WOULD HAVE TO REDUCE GERMAN RATES AGAIN HAD BEEN BUILDING FOR SEVERAL WEEKS AND AS A RESULT THE MARK HAD COME UNDER INCREASING PRESSURE THE BANK HAD MOST RECENTLY CUT RATES APRIL 22 LOWER INTEREST RATES TEND TO MAKE DEPOSITS DENOMINATED IN THE CURRENCY INVOLVED LESS ATTRACTIVE TO INVESTORS THERE WAS SO MUCH OVERANTICIPATION THAT WHEN THE CUTS FINALLY ARRIVED PLAYERS DECIDED TO TAKE PROFITS ON GAINS REGISTERED AS THE MARK HAD DROPPED SAID JAY TUCKER THE DIRECTOR OF FOREIGN EXCHANGE AT FIRST BOSTON CORP MOREOVER THE BUNDESBANK WAS WIDELY RUMORED TO HAVE SOLD DOLLARS HEAVILY AFTER THE RATE CUTS WERE ANNOUNCED PROBABLY ON ITS CONCERNS ABOUT MAINTAINING THE STABILITY OF THE CURRENCY PLAYERS SAID THEY CHASED IT DOWN ONE TRADER SAID WEAKERTHANEXPECTED US ECONOMIC DATA RELEASED THURSDAY ALSO CONTRIBUTED TO THE DOLLAR'S DECLINES MR TUCKER SAID THE US NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT'S INDEX OF BUSINESS ACTIVITY FELL TO 483 IN JUNE FROM 511 IN MAY THE MARKET HAD EXPECTED THE INDEX TO READ 500 9307020064 930702 BUSINESS BRIEF SENSORMATIC ELECTRONICS CORP NEW DEACTIVATOR IS UNVEILED FOR USE ON ANTITHEFT LABELS SENSORMATIC ELECTRONICS CORP DEERFIELD BEACH FLA INTRODUCED A DEVICE TO DEACTIVATE ANTITHEFT LABELS ON MUSIC PRODUCTS AMID CONCERNS THAT THE COMPANY'S ORIGINAL DEVICE COULD HURT THE QUALITY OF AUDIO CASSETTES THE COMPANY SAID THE DEVICE HAS BEEN SHIPPED TO MUSIC MANUFACTURERS FOR THEIR EVALUATION THE NATIONAL ASSOCIATION OF RECORDING MERCHANDISERS THIS YEAR RECOMMENDED SENSORMATIC'S TECHNOLOGY AS THE STANDARD FOR USE IN SOURCELABELING MUSIC PRODUCTS WITH ELECTRONIC ANTITHEFT LABELS LAST WEEK AFTER REPORTS THAT SENSORMATIC'S DEACTIVATION PROCESS COULD UNDER CERTAIN CONDITIONS AFFECT THE SOUND QUALITY OF TAPES THE COMPANY'S STOCK TUMBLED IN HEAVY TRADING THE COMPANY IN A STATEMENT LATE WEDNESDAY SAID IT BELIEVES THE NEW DEVICE WILL ALLAY MANUFACTURER'S CONCERNS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY SENSORMATIC CLOSED AT 39625 A SHARE UP 625 CENTS 9307020063 930702 APPEAL MILL IS LIKELY TO GRIND SLOWLY BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IT WILL PROBABLY BE MORE THAN A MONTH BEFORE THE GOVERNMENT GETS AN APPEALS COURT HEARING ON A CONTROVERSIAL DISTRICT COURT DECISION THAT HAS JEOPARDIZED THE NORTH AMERICAN FREE TRADE AGREEMENT A LONG APPEAL CALLS INTO QUESTION THE CLINTON ADMINISTRATION'S ABILITY TO GET THE AGREEMENT THROUGH CONGRESS BY ITS SLATED EFFECTIVE DATE OF JAN 1 NAFTA AS THE AGREEMENT IS CALLED WOULD DISMANTLE TRADE BARRIERS AMONG THE US MEXICO AND CANADA OVER A 15YEAR PERIOD BUT ON WEDNESDAY FEDERAL DISTRICT JUDGE CHARLES RICHEY RULED THAT THE CLINTON ADMINISTRATION MUST FILE A STATEMENT ON THE AGREEMENT'S ENVIRONMENTAL IMPACT THE JUSTICE DEPARTMENT YESTERDAY NOTIFIED THE DISTRICT COURT THAT IT WILL APPEAL THE RULING IN FEDERAL APPEALS COURT HERE AND A SPOKESMAN FOR THE DEPARTMENT OUTLINED A SCHEDULE OF FILINGS UNDER THAT SCHEDULE THE GOVERNMENT WOULD FILE ITS BRIEF JULY 19 THE THREE GROUPS THAT WON THE ENVIRONMENTALIMPACT DECISION WOULD FILE A RESPONSE AUG 2 THEN THE GOVERNMENT WOULD FILE AN ANSWER TO THE RESPONSE AUG 10 ONLY THEN WOULD THE COURT SCHEDULE A HEARING DATE THE JUSTICE DEPARTMENT SPOKESMAN SAID THE SCHEDULE WAS REACHED AFTER NEGOTIATIONS WITH THE GROUPS THAT FILED THE SUIT THE SIERRA CLUB PUBLIC CITIZEN AND FRIENDS OF THE EARTH IN THE COURT RULING THAT SPARKED THIS LEGAL BATTLE JUDGE RICHEY SAID THE ADMINISTRATION VIOLATED US LAW THAT REQUIRES ENVIRONMENTALIMPACT STATEMENTS FOR FEDERAL ACTIONS SIGNIFICANTLY AFFECTING THE QUALITY OF THE HUMAN ENVIRONMENT OPPONENTS OF NAFTA HAVE USED THE RULING AS A PLATFORM FROM WHICH TO ATTACK THE AGREEMENT AND WILL USE THE TIME DURING WHICH THE RULING IS BEING APPEALED TO TRY TO BOLSTER THEIR POSITION SOME CLINTON ADMINISTRATION OFFICIALS SAID THE ADMINISTRATION MUST USE THE TIME IN THE SAME WAY BUT SOME SAY IT WILL BE DIFFICULT FOR THE ADMINISTRATION TO WHIP UP THE TRADE FIGHT JUST NOW WHEN IT HAS A BRUISING BUDGET BATTLE ON IT HANDS THERE'S CLEAR CONCERN AMONG ADMINISTRATION OFFICIALS THAT THE DECISION HAS TO BE CHALLENGED BECAUSE OF ITS IMPLICATIONS FOR THE BROAD ROUND OF WORLD TRADE TALKS BEING HELD UNDER THE AUSPICES OF THE GENEVABASED GENERAL AGREEMENT ON TARIFFS AND TRADE THOSE PUSHING FOR AN ENVIRONMENTAL IMPACT STATEMENT ON NAFTA CLEARLY WANT TO SEE THE REQUIREMENT SPILL OVER TO OTHER TRADE AGREEMENTS SAID BRENT BLACKWELDER VICE PRESIDENT FOR POLICY AT FRIENDS OF THE EARTH WHAT WE SAID ABOUT NAFTA APPLIES TO GATT TRADE AND LEGAL EXPERTS SAID THAT WORRY ABOUT A DECISION LIKE JUDGE RICHEY'S COULD MAKE IT DIFFICULT FOR TRADE NEGOTIATORS TO REACH AGREEMENTS WHEN AGREEMENTS ARE NEGOTIATED THERE HAS TO BE SOME EXPECTATION THAT THEY WILL BE PUT IN FORCE SAID JULIUS KATZ WHO WAS CHIEF NAFTA NEGOTIATOR DURING THE BUSH ADMINISTRATION YOU CAN'T HAVE OTHERS MAKE HARD POLITICAL DECISIONS JUST TO HAVE IT HELD UP IN THE COURTS MR KATZ SAID THE BUSH ADMINISTRATION MADE A CONSCIOUS DECISION NOT TO COMPLETE AN ENVIRONMENTALIMPACT STATEMENT FOR NAFTA BECAUSE PAST TRADE NEGOTIATIONS DIDN'T REQUIRE THEM ADDED GARY HUFBAUER A TRADE ECONOMIST AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS FOR THE FRENCH AND THE JAPANESE JUDGE RICHEY HANDED THEM A WONDERFUL REASON TO DELAY ANY AGREEMENT AT THE TOKYO SUMMIT NEXT WEEK OF THE GROUP OF SEVEN INDUSTRIAL LEADERS SEE RELATED STORIES US FIRMS UNDAUNTED BY NAFTA RULING MEXICO MAY ABIDE BY TERMS ACCORD OR NO AND MOST EXPECTED TO PUSH AHEAD SOUTH OF BORDER WSJ JULY 2 1993 9307020062 930702 BUSINESS BRIEF CANANDAIGUA WINE CO COMPANY AGREES TO ACQUIRE VINTNERS INTERNATIONAL CO CANANDAIGUA WINE CO IN A MOVE THAT COULD MAKE IT THE NO 2 WINEMAKER BEHIND GALLO SAID IT AGREED TO BUY VINTNERS INTERNATIONAL CO BEST KNOWN FOR ITS PAUL MASSON BRAND TERMS WEREN'T DISCLOSED AND THE CANANDAIGUA NY COMPANY DECLINED TO SAY WHETHER OR NOT THE TRANSACTION WOULD BE COMPLETED THIS YEAR BUT CANANDAIGUA SAID THE ACQUISITION WOULD INCREASE ITS ANNUAL WINE PRODUCTION TO 552 MILLION GALLONS FROM 354 MILLION GALLONS VINTNERS BASED IN GONZALES CALIF IS THE NATION'S NO 5 WINEMAKER CANANDAIGUA SAID THE ACQUISITION WOULD GREATLY ENHANCE CANANDAIGUA'S PRESENCE IN THE LUCRATIVE TABLE WINE MARKET ABOUT 68 OF DOMESTIC WINES SOLD IN THE US IN 1991 WERE TABLE WINES ACCORDING TO CANANDAIGUA BESIDES PAUL MASSON VINTNERS MAKES TAYLOR CALIFORNIA CELLARS TAYLOR NEW YORK ST REGIS NONALCOHOLIC AND GREAT WESTERN WINES CANANDAIGUA'S MAIN BRANDS INCLUDE MANISCHEWITZ WINES BARTON GIN AND VODKA TSINGTAO AND ST PAULI GIRL BEER AND TEN HIGH BOURBON AND MONTEZUMA TEQUILA 9307020061 930702 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY CLINTON LABORS TO MAKE THE TOKYO SUMMIT LOOK SUCCESSFUL US OFFICIALS ARE RELIEVED THEY WILL AT LEAST BE ABLE TO UNVEIL A SCALEDBACK RUSSIAN PRIVATIZATION FUND IN TOKYO A TOP TREASURY OFFICIAL SAYS THAT ANY WORLDTRADE PACT DEAL WOULD BE A RELATIVELY MODEST ONE SOME ALSO SEE AN OUTSIDE CHANCE OF A LASTMINUTE TRADE DEAL WITH JAPAN AND PREPARE TO FLY TO TOKYO FOR WEEKEND TALKS AHEAD OF CLINTON IF THEY ARE CONVINCED THAT NEW JAPANESE OVERTURES ARE SINCERE MIYAZAWA HINTS HE WANTS TO LEAVE OFFICE WITH THE US RELATIONSHIP ON A POSITIVE NOTE TRYING TO SOOTHE ILL FEELING THE JAPANESE AMBASSADOR CALLED ON BENTSEN WEDNESDAY THE US HINTS CLINTON COULD BACK AWAY FROM A CAMPAIGN PLEDGE TO REVIVE THE LAW PROVIDING SANCTIONS AGAINST TRADERS THE US DESIGNATES AS UNFAIR SEEKING TO PUT A DOMESTIC ECONOMIC SPIN ON THE G7 TRIP CLINTON WILL TELL AN AMERICAN GROUP IN TOKYO THAT HIS EFFORTS WILL RESULT IN MORE US EXPORTS AND JOBS THE WHITE HOUSE SEEKS TO KEEP ABORTION FROM SIDETRACKING HEALTH REFORM STUNG BY THE HOUSE VOTE ON MEDICAID FUNDING ADVISERS SEEK A MIDDLE GROUND ON INCLUDING ABORTION IN THE HEALTHCARE BENEFITS PACKAGE SEN WOFFORD WARNS THE CLINTONS THAT EXPLICITLY INCLUDING ABORTION WOULD BE UNWISE HE ARGUES FOR LEAVING THE ISSUE UP TO INDIVIDUAL HEALTH PLANS OTHERS PUSH FOR A STATE OPTION BUT ABORTIONRIGHTS FORCES WARN THAT THE PRESIDENT WOULD BE SEEN AS A HYPOCRITE ONE POSSIBLE STRATEGY IS TO INCLUDE A VAGUELY WORDED REPRODUCTIVE SERVICES BENEFIT IN CLINTON'S INITIAL PACKAGE WHILE NOT FIGHTING STRONGLY TO KEEP IT BUT THAT WOULD WIND UP ANGERING BOTH SIDES PRESSURES EASE ON THE FED TO RAISE SHORTTERM INTEREST RATES NEXT WEEK WITH LONGTERM RATES AT 16YEAR LOWS FED OFFICIALS CONCLUDE THAT MARKET FEARS ABOUT AN INFLATIONARY SURGE HAVE DISSIPATED FOR NOW SO POLICY MAKERS ARE LIKELY TO LEAVE SHORTTERM RATES UNCHANGED AT THEIR TWODAY MEETING BUT THEY PROBABLY WILL GIVE CHAIRMAN GREENSPAN LEEWAY TO MOVE RATES UP A NOTCH JUST IN CASE DESPITE LAST MONTH'S FAVORABLE CONSUMER AND PRODUCERPRICE READINGS GREENSPAN WILL BE URGED TO MOVE SWIFTLY IF THE NEXT ROUND OF LABOR DEPARTMENT REPORTS SHOWS AN UPTICK IN INFLATION EVEN THE ADMINISTRATION SIGNALS IT WOULDN'T COMPLAIN ABOUT A SMALL INCREASE IN SHORTTERM RATES SHOULD INFLATION JITTERS RETURN THE ADMINISTRATION MAKES SURPRISINGLY LITTLE EFFORT TO INFLUENCE THE CHOICE OF A NEW NEW YORK FED PRESIDENT LEVITT'S ARRIVAL AT THE SECCONFIRMATION IS EXPECTED BEFORE THE SENATE'S AUGUST RECESS WILL BE GOOD NEWS FOR COMMISSIONERS CHAFING TO MOVE ON SOME MUCHTALKEDABOUT MATTERS THE FLAP OVER POLITICAL CONTRIBUTIONS FROM MUNICIPALSECURITIES UNDERWRITERS IS NEAR THE TOP OF THE LIST ALSO AT ISSUE GRATUITIES OFFERED BY EXCHANGES TO BROKERS STEERING BUSINESS THEIR WAY QUID PRO QUO ONE REASON CLINTON HAS PROMISED TO FIGHT TO PUT TAX BREAKS FOR SMALL BUSINESS BACK INTO THE ECONOMIC PACKAGE HAS LITTLE TO DO WITH THE MERITS TOP AIDES SAY THE PRESIDENT NEEDS TO GET SOME GOODIES FOR SMALL BUSINESSES NOW TO SOFTEN THEM UP TO SUPPORT THE HEALTHCARE REFORM PLAN TALKING TOUGH NEW JUSTICE DEPARTMENT ANTITRUST CHIEF ANNE BINGAMAN CONTEMPLATES ENFORCEMENT ACTIONS AGAINST FOREIGN CARTELS THAT CONSPIRE TO LOCK OUT US MANUFACTURERS SHE WOULD CONFRONT HUGE OBSTACLES SUCH AS GETTING DOCUMENTS FROM FOREIGN COMPANIES BUSH OFFICIALS TALKED OF SUCH ACTION BUT NEVER TOOK IT A YEN FOR TOKYO ATTORNEY JOHN REILLY SWITCHES FROM HEADING WINSTON & STRAWN'S OFFICE HERE TO BECOMING OFCOUNSEL FOR BAKER & MCKENZIE A BIG DIFFERENCE BETWEEN THE TWO FIRMS THE LATTER HAS A MAJOR TOKYO OFFICE REILLY IS A LONGTIME CONFIDANT OF FORMER VICE PRESIDENT MONDALE THE NEW AMBASSADOR TO JAPAN SCANDALTARRED SENATORS FACE STRONG CHALLENGES AND MONEY WORRIES VIRGINIA DEMOCRAT ROBB WHO NARROWLY ESCAPED INDICTMENT OVER TAPED PHONE CONVERSATIONS OF GOV WILDER STARTED THE ELECTION CYCLE WITH ALMOST NO MONEY AND FACES A CORROSIVE PRIMARY CHALLENGE BY WILDER IF ROBB SURVIVES HE MAY FACE OLIVER NORTH IN THE GENERAL ELECTION MINNESOTA'S DURENBERGER DENOUNCED BY THE SENATE FOR FINANCIAL VIOLATIONS ALSO STARTED WITH ALMOST NO MONEY EXSEN BOSCHWITZ A FELLOW REPUBLICAN MIGHT SEEK THE SEAT IF HE PULLS OUT ARIZONA DEMOCRAT DECONCINI A MEMBER OF THE KEATING FIVE EXPECTED TO FACE A CHALLENGE FROM POPULAR GOP REP KYL STARTED WITH 270000 IN THE BANK SOME DEMOCRATS SUGGEST DECONCINI TRY TO MAKE A MARK BY MOVING AWAY FROM HIS TRADITIONAL PRONRA POSITIONS FELLOW KEATING FIVER RIEGLE OF MICHIGAN FACING A LIKELY CHALLENGE FROM GOP OPERATIVE SPENCE ABRAHAM HAS A NEST EGG OF ONLY 544000 THE NATIONAL REPUBLICAN SENATORIAL COMMITTEE ALREADY BEGINS MAILINGS OF UNFLATTERING PRESS CLIPS ON RIEGLE AND ROBB MINOR MEMOS AT HIS STAFF'S URGING CLINTON IS EXPECTED TO TAKE AT LEAST A TWOWEEK VACATION NEXT MONTH WITH SOME OF THE TIME SPENT BACK IN ARKANSAS A SURVEY CONCLUDING THAT TELEGRAMS HAVE IMPACT ON CAPITOL HILL IS SPONSORED BY WHAT A SURPRISE WESTERN UNION A STUDY OF COURT RECORDS BY THE PRIVACY JOURNAL FOUND THE BUSH ADMINISTRATION SET A NEW RECORD FOR USING WIRETAPS AN AVERAGE OF 332 TIMES A YEAR TWICE THE RATE OF THE REAGAN YEARS 9307020060 930702 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 CONTINENTAL BROADCASTING LTD 120 MILLION OF SENIOR SUBORDINATED NOTES DUE JULY 1 2003 PRICED AT PAR TO YIELD 10625 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR FIVE YEARS RATED SINGLEB3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN BANK 257 MILLION OF NOTES DUE JULY 8 1998 PRICED AS 5215S AT PAR ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 19 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN BANK 245 MILLION OF NOTES DUE JULY 8 1996 PRICED AS 441S AT PAR ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 10 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO INTERNATIONAL SHIPHOLDING CORP 100 MILLION OF SENIOR NOTES DUE JULY 1 2003 PRICED AT PAR TO YIELD 9 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR FIVE YEARS RATED SINGLEB1 BY MOODY'S AND DOUBLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS UNITED TELEPHONE CO OF FLORIDA 135 MILLION TWOPART ISSUE OF FIRST MORTGAGE BONDS WON IN COMPETITIVE BIDDING BY GROUPS OF DEALERS LED BY LEHMAN BROTHERS AND MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST PART 60 MILLION DUE JULY 15 2013 WAS REOFFERED BY THE LEHMAN GROUP AS 6875S AT 98665 TO YIELD 7 IT WAS PRICED AT A SPREAD OF 325 BASIS POINTS OVER TREASURYS THE SECOND PART 75 MILLION DUE JULY 17 2023 WAS REOFFERED BY THE MERRILL GROUP AS 7125S AT 98949 TO YIELD 722 IT WAS PRICED AT A SPREAD OF 55 BASIS POINTS OVER TREASURYS BOTH PARTS ARE NONCALLABLE AND ARE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P UNITED TELEPHONE IS A UNIT OF SPRINT CORP BROADBAND TECHNOLOGIES INC INITIAL OFFERING OF 35 MILLION COMMON SHARES PRICED AT 18 APIECE THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO CARRGOTTSTIEN FOODS CO INITIAL OFFERING OF 88 MILLION COMMON SHARES PRICED AT 1450 APIECE THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP CARTER HAWLEY HALE STORES INC 10 MILLION SHARES OF COMMON STOCK PRICED AT 1375 APIECE THROUGH SALOMON BROTHERS INC AS LEAD MANAGER AND MERRILL LYNCH & CO GENESIS MERCHANT GROUP SECURITIES AND SMITH BARNEY HARRIS UPHAM & CO AS COMANAGERS LEVITZ FURNITURE INC INITIAL OFFERING OF 13 MILLION COMMON SHARES PRICED AT 14 APIECE THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL HOME LOAN MORTGAGE CORP 15 BILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1559 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 775 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 298 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 5001 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 1993135 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 715 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 148 YEARS PEOPLES BANK 200 MILLION OF CREDITCARD ASSETBACKED CERTIFICATES PRICED AS 48S AT 99 29/32 TO YIELD 488 A 57BASISPOINT SPREAD ABOVE THE TREASURY'S THREEYEAR NOTE ACCORDING TO MCM CORPORATEWATCH THE CERTIFICATES ISSUED THROUGH PEOPLES BANK CREDIT CARD MASTER TRUST 19931 WERE RATED TRIPLEA BY BOTH MOODY'S AND S&P BASED ON 9 GUARANTEE BY THE FINANCIAL GUARANTY INSURANCE CO AND A 35 CASH COLLATERAL ACCOUNT GOLDMAN SACHS & CO LED THE OFFERING THE CERTIFICATES WERE OFFERED IN A CONTROLLED AMORTIZATION STRUCTURE WITH A 30MONTH REVOLVING PERIOD PRINCIPAL PAYMENTS BEGIN JAN 15 1996 THE ISSUE HAS AN EXPECTED FINANCIAL MATURITY OF DEC 15 1996 AND AN AVERAGE LIFE OF THREE YEARS PEOPLES BANK IS A UNIT OF PEOPLES MUTUAL HOLDINGS CETELEM FRENCH PARENT 15 BILLION FRENCH FRANCS OF 7875 EUROBONDS DUE JULY 28 2008 VIA PARIBAS CAPITAL MARKETS LTD FIXED OFFER AT 99356 TO YIELD 795 A MARGIN OF 92 BASIS POINTS ABOVE FRENCH GOVERNMENT'S 85 BOND DUE 2008 FEES 05 POINT RANK XEROX FINANCE NEDERLAND BV UK PARENT 125 MILLION OF 875 EUROBONDS DUE JULY 28 2003 AT ISSUE PRICE 10086 VIA CREDIT SUISSE FIRST BOSTON LTD REOFFERED AT 99235 TO YIELD 887 A MARGIN OF 105 BASIS POINTS OVER 8 UK GILT DUE JUNE 2003 GUARANTOR RANK XEROX LTD FEES TWO POINTS 9307020059 930702 ECONOMY APPLE'S BARRAM IS TAPPED FOR NO 2 COMMERCE POST WASHINGTON COMMERCE SECRETARY RON BROWN HAS PEGGED DAVID BARRAM AN APPLE COMPUTER INC VICE PRESIDENT AND LOBBYIST TO BECOME THE NO 2 OFFICIAL AT THE DEPARTMENT WITH THE MOVE MR BROWN AGAIN PICKS A HIGHTECH EXECUTIVE TO BRING CORPORATE WEIGHT TO THE AGENCY MR BARRAM HAS SHOWN POLITICAL SKILLS HELPING TO ENGINEER A HIGHTECH COALITION OF INDUSTRY EXECUTIVES AROUND PRESIDENT CLINTON DURING THE ELECTION CAMPAIGN JOHN SCULLEY WHO RECENTLY RESIGNED AS APPLE CHIEF EXECUTIVE WAS CENTRAL TO THAT UNUSUAL BAND OF SUPPORT MR BARRAM ALSO HELPED DEVELOP MR CLINTON'S TECHNOLOGY POLICY MR BROWN HAS RECOMMENDED THAT PRESIDENT CLINTON NOMINATE MR BARRAM A DECISION IS EXPECTED SOON BUT HIGHTECH EXPERTS AND EXECUTIVES SAY MR BARRAM IS A STEP DOWN FROM FORMER CRAY RESEARCH INC CHIEF EXECUTIVE JOHN ROLLWAGEN MR ROLLWAGEN WITHDREW HIS NAME IN MAY FOR THE JOB AS DEPUTY COMMERCE SECRETARY AMID A SECURITIES AND EXCHANGE COMMISSION INSIDERTRADING INVESTIGATION AT CRAY COMPUTER CORP A CRAY RESEARCH SPINOFF MR BARRAM APPLE'S VICE PRESIDENT OF WORLDWIDE CORPORATE AFFAIRS AND PUBLIC POLICIES DOESN'T HAVE MR ROLLWAGEN'S CLOUT IN CORPORATE AMERICA AND ISN'T CONSIDERED A HIGHTECH GURU DESPITE HIS AFFILIATION WITH APPLE AND PAST EMPLOYMENT AT SILICON GRAPHICS INC AND HEWLETTPACKARD CO A PERSON INVOLVED IN RECRUITING MR BARRAM SAID IT WASN'T IMPORTANT TO WOO A CHIEF EXECUTIVE TO THE NO 2 SLOT AND THAT HE WAS SELECTED FOR HIS MANAGERIAL SKILLS AND LONGTERM TECHNOLOGY OUTLOOK 9307020058 930702 GLOBAL PIQUE WITH VOTERS FED UP WORLD LEADERS SEE THEIR POPULARITY SINK CORRUPTION BLEAK ECONOMIES AND THE COLD WAR'S END ARE BLAMED FOR MALAISE DISQUIET ON WESTERN FRONT BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL WHEN NORMAN LAMONT LOST HIS JOB AS BRITAIN'S CHANCELLOR OF THE EXCHEQUER IN A RECENT CABINET RESHUFFLE HE SCATHINGLY DESCRIBED THE GOVERNMENT HE HAD SERVED AS BEING IN OFFICE BUT NOT IN POWER MR LAMONT WAS TALKING ABOUT BRITAIN BUT HE COULD JUST AS WELL HAVE BEEN REFERRING TO ANY OF THE MANY WESTERN DEMOCRACIES IN WHICH POLITICAL LEADERS ARE NOW FACING RESTIVE ELECTORATES VOTERS EVERYWHERE ARE FED UP POLLS SHOW THEY ARE ANNOYED BY LEADERS WHO APPEAR SMALL AT A TIME WHEN THE PROBLEMS FACING THEM ARE SO BIG THEY ARE DISGUSTED WITH FINDING INDECISION AND CORRUPTION WHEN THEY LOOK FOR DIRECTION AND IT IS NOT JUST INDIVIDUAL POLITICIANS WHO ARE THE TARGETS OF PUBLIC FRUSTRATION IN PLACES LIKE JAPAN AND ITALY THE WHOLE POLITICAL SYSTEM IS BEING CALLED INTO QUESTION WE ARE WITNESSING A CRISIS OF REPRESENTATIVE DEMOCRACY SAYS FORMER FRENCH PRESIDENT VALERY GISCARD D'ESTAING LOOK NO FURTHER THAN THE BIG INDUSTRIAL NATIONS WHOSE LEADERS GATHER IN TOKYO NEXT WEEK FOR THE ANNUAL GROUP OF SEVEN SUMMIT MEETING THE MOST PRESTIGIOUS EVENT ON THE CALENDAR OF WORLD ECONOMICS ONE YEAR AGO ALL OF THESE NATIONS' LEADERS WERE PLAGUED BY POOR RATINGS AND THREE OF THEM ARE NO LONGER IN POWER INCLUDING PRESIDENT BUSH AS FOR THE REMAINING FOUR THEY WOULD BE HAPPY TO RECEIVE THE MEAGER APPROVAL THEY WERE COMPLAINING ABOUT A YEAR AGO THE MOST DRAMATIC UPHEAVAL HAS TAKEN PLACE IN ITALY WHERE THE ESTABLISHED POLITICAL ORDER HAS BEEN SWEPT AWAY OVER THE PAST 12 MONTHS NO FEWER THAN FOUR FORMER PRIME MINISTERS AND A DOZEN FORMER CABINET MINISTERS ARE UNDER INVESTIGATION FOR ALLEGED CORRUPTION A SIMILAR EARTHQUAKE IS ROCKING JAPAN THE LIBERAL DEMOCRATIC PARTY WHICH HAS RULED FOR NEARLY FOUR DECADES IS CRACKING SHAKEN BY LURID TALES OF CORRUPTION INCLUDING AT LEAST ONE SENIOR POLITICIAN STASHING AWAY GOLD BARS THE LDP MAY BE OUT OF OFFICE AFTER NATIONAL ELECTIONS JULY 18 IN FRANCE THE SOCIALIST PARTY OF PRESIDENT FRANCOIS MITTERRAND WAS SO SEVERELY DEFEATED IN ELECTIONS IN MARCH THAT IT IS HOLDING AN EMERGENCY CONGRESS THIS WEEKEND TO DECIDE WHETHER IT HAS A FUTURE AT ALL LEADERS IN GERMANY AND BRITAIN HAVE HIT ALLTIME LOWS IN POPULARITY POLLS CLOSE TO THE MISERABLE 11 SCORED BY BRIAN MULRONEY BEFORE HE RELINQUISHED HIS POST LAST MONTH AS CANADA'S PRIME MINISTER AND IN THE US IT HAS TAKEN A MILITARY STRIKE AGAINST BAGHDAD TO REVERSE THE SLUMP IN PRESIDENT CLINTON'S RATINGS AND TO CURB CRITICISM OF HIS FIRST MONTHS IN OFFICE THERE IS NOTHING NEW ABOUT GOVERNMENTS BEING UNPOPULAR IN TOUGH ECONOMIC TIMES BUT THIS SITUATION IS EXCEPTIONAL BECAUSE IT IS STRIKING IN SO MANY PLACES AT ONCE AND BECAUSE IT IS TOUCHING NOT JUST INCUMBENTS BUT ALSO OPPOSITION PARTIES THE FRENCH DESCRIBE THE PHENOMENON AS LA MOROSITE OR MOROSENESS SO WHY IS IT HAPPENING AND WHY NOW THE SIMPLE ANSWER SOME CONTEND IS THAT THE CURRENT CROP OF WORLD LEADERS JUST MAY NOT BE UP TO THE JOB THERE IS NOSTALGIA FOR THE MORE FORCEFUL WORLD LEADERS OF YESTERYEAR INCLUDING SUCH CONTROVERSIAL FIGURES AS BRITAIN'S MARGARET THATCHER MRS THATCHER IN FACT EASILY TOPPED A RECENT POLL IN BRITAIN THAT ASKED WHO WOULD MAKE THE BEST CONSERVATIVE PRIME MINISTER HER SUCCESSOR JOHN MAJOR LIMPED IN FOURTH OUT OF SEVEN TORY CONTENDERS THE ECONOMIC DOWNTURN WHICH IS BOTH TOUGHER AND LONGER THAN FORECAST HASN'T HELPED PEOPLE ARE LOOKING FOR SCAPEGOATS AND ONE GROUP THEY KNOW THEY BLAME IS THE POLITICAL CLASS SAYS MICHAEL ADAMS PRESIDENT OF ENVIRONICS RESEARCH GROUP A CANADIAN POLLING FIRM HE ARGUES THAT FUNDAMENTAL CHANGE IS IN THE AIR AS DEMOCRATIC SYSTEMS THAT THRIVED ON THE POLITICS OF PROSPERITY ARE RESHAPED TO COPE WITH THE POLITICS OF SCARCITY DEEPER FORCES SEEM TO BE AT WORK TOO ANDRE GLUCKSMANN A FRENCH PHILOSOPHER AND AUTHOR SAYS THE END OF THE COLD WAR WAS A PIVOTAL MOMENT THE NEED TO FIGHT COMMUNISM CREATED A SACRED UNION BETWEEN THE PEOPLE AND THE POLITICAL ELITE IN THE WEST THAT HAS NOW DISSOLVED HE SAYS WORLD LEADERS FACE NEW TASKS SUCH AS DEALING WITH NUCLEAR PROLIFERATION OR THE RECONSTRUCTION OF EASTERN EUROPE AND ARE BARELY COPING DOMESTICALLY AS WESTERN SOCIETIES TURN INWARD THEY ARE DISCOVERING MANY UNRESOLVED PROBLEMS THAT WERE LONG BURIED OR IGNORED HE ADDS WITH THE END OF THE COLD WAR MOREOVER CAME THE FIRST POSTCOMMUNIST HOT WAR THE DISMEMBERING OF WHAT USED TO BE YUGOSLAVIA THE FIGHTING HAS SHOWN THE INADEQUACY OF THE WEST PARTICULARLY EUROPE TO COPE WITH A BRUTAL REALITY THAT APPEARS NIGHTLY ON TELEVISION SCREENS WHATEVER THE ACTUAL CAUSES OF THE CURRENT MALAISE MULTILATERAL GATHERINGS SUCH AS THE G7 SUMMIT AMOUNT TO A DOUBLEEDGED SWORD IN THEORY SUCH MEETINGS PROVIDE AN OPPORTUNITY FOR LEADERS TO ASSERT THEMSELVES ON THE WORLD STAGE BUT EXPECTATIONS TEND TO RUN HIGH BEFORE SUCH GATHERINGS AND ANY DISAPPOINTMENTS ARE QUICKLY INTERPRETED BY THE MEDIA AS FURTHER PROOF OF INADEQUACY THIS YEAR'S PARTICIPANTS ARE ACUTELY AWARE OF THE PROBLEM IN FACT ONE OF THE ITEMS ON THE AGENDA OF THE TOKYO SUMMIT IS THE FUTURE OF THE G7 ITSELF A SENIOR FRENCH OFFICIAL WHO HAS BEEN HELPING TO PREPARE THE MEETING SAYS WE NEED TO REORGANIZE TO REFLECT ON OURSELVES AND SEE WHAT WE CAN DO TO BECOME MORE EFFECTIVE IT HASN'T HELPED THE G7'S CREDIBILITY THAT THE MEETINGS DON'T OFTEN PRODUCE TANGIBLE DECISIONS SINCE THE ONE IN HOUSTON IN 1990 EACH MEETING HAS CONCLUDED WITH A PLEDGE TO COMPLETE NEGOTIATIONS ON THE GENERAL AGREEMENT ON TARIFFS AND TRADE A GOAL THAT SEEMS AS ELUSIVE IN 1993 AS EVER PREPARATORY TALKS ARE STILL NOWHERE NEAR COMPLETION IN SUCH CIRCUMSTANCES POLITICAL DISARRAY CAN BECOME AN ADVANTAGE FOR EXAMPLE JAPANESE OFFICIALS NOW ARE ARGUING THAT THEIR GOVERNMENT'S PRECARIOUS POSITION AT HOME MEANS THEY WILL BE UNABLE TO DO MORE TO REDUCE THEIR BIG TRADE SURPLUS WITH THE US AND EUROPE DESPITE HEAVY INTERNATIONAL PRESSURE THE JAPANESE ARE BEING SAVED BY THEIR POLITICAL SITUATION SAYS THE SENIOR FRENCH OFFICIAL FOR MR GISCARD D'ESTAING THE FORMER FRENCH PRESIDENT WHO HELPED INITIATE THE G7 AND WAS THE HOST AT ITS FIRST SUMMIT IN 1975 ENOUGH IS ENOUGH IF THE G7 CONTINUES IN ITS PRESENT FORM IT'S WORTHLESS HE SAYS THE INSTITUTION HAS DEGENERATED IT HAS BECOME LARGELY A SPECTACLE AND DOESN'T FULFILL ITS AIM WHICH IS TO DISCOVER WHAT THE MAJOR LEADERS REALLY THINK ABOUT THE PROBLEMS THEY FACE HE AND OTHERS SAY THE MEDIA SHARE SOME OF THE BLAME FOR THE DISAFFECTION IN A SENSE THE POLITICIANS BECOME PREY TO THE HUGE APPETITE OF THE MEDIA TO BUILD SUPERHEROES CONTENDS MARCEL COTE A MONTREAL ECONOMIC CONSULTANT AND ONETIME ADVISER TO MR MULRONEY WHILE HE WAS STILL IN OFFICE MR MULRONEY ACTUALLY TRIED TO MAKE A VIRTUE OF HIS ROCKBOTTOM APPROVAL RATINGS THESE DAYS IF YOU ARE UNPOPULAR ALL IT MEANS IS THAT YOU HAVE DONE THE TOUGH THINGS MR MULRONEY TOLD A TELEVISION INTERVIEWER IN DECEMBER HOW DIFFERENT FROM THE POLITICAL TONE OF 1989 WHEN THE BERLIN WALL CAME CRASHING DOWN AND THE WEST BASKED IN TRIUMPH THIS WAS THE FINAL VICTORY OF THE WESTERN MODEL OF LIBERAL DEMOCRACY SOME GLOATED CALLING IT THE END OF HISTORY IN FACT IT WAS THE TRIUMPHALISM THAT QUICKLY ENDED AND BLOODY HISTORY THAT RETURNED IN PLACES LIKE YUGOSLAVIA EUROPEAN LEADERS REACTED TO THE COLLAPSE OF THE BERLIN WALL WITH THE MAASTRICHT TREATY A FRANCOGERMAN ATTEMPT TO STRENGTHEN THE POLITICAL STATUS QUO INSIDE THE 12NATION EUROPEAN COMMUNITY AND MOVE TOWARD A MONETARY UNION BY THE END OF THE DECADE IT IS A HIGHLY COMPLICATED DOCUMENT THE RESULT OF LABORIOUS COMPROMISE YET COBBLED TOGETHER SO FAST IT IS SOMETIMES CONTRADICTORY IT HAS ALSO DONE MUCH TO DAMAGE THE CREDIBILITY OF LEADERS WHO MADE ASSUMPTIONS ABOUT THE FUTURE OF EUROPE THAT AREN'T WHOLEHEARTEDLY SHARED BY THEIR VOTERS TAKE THE TWO NATIONS WHOSE LEADERS INITIATED THE TREATY IN FRANCE IT WAS ONLY NARROWLY APPROVED IN A REFERENDUM LAST FALL AND IN GERMANY WHERE PEOPLE ARE ALARMED AT THE PROSPECT OF GIVING UP THE MARK A SYMBOL OF POSTWAR PROSPERITY POLLS SHOW THE PUBLIC IS FURIOUS AT NOT BEING GIVEN THE OPPORTUNITY TO VOTE ON IT SOME EUROPEAN LEADERS NOW CONCEDE THEIR PLANS BACKFIRED EUROPE IS STILL CONFUSING TO PUBLIC OPINION PRESIDENT MITTERRAND TOLD HIS COLLEAGUES AT A RECENT EC SUMMIT IN COPENHAGEN ACCORDING TO FRENCH OFFICIALS PEOPLE CONTINUE TO ASK WHAT IT INVOLVES IN INTELLECTUAL POLITICAL AND INDUSTRIAL CIRCLES THAT'S CLEAR BUT OUR PEOPLE STILL DON'T KNOW WHAT IT IS FOR ALL THE GROUSING THE WEST HASN'T SEEN UPHEAVALS ANALOGOUS TO THE ONES IN EASTERN EUROPE WHERE CITIZENS FIRST THREW OFF THEIR FEAR AND THEN THREW OUT THEIR LEADERS ITALY COMES CLOSEST FOR 40 YEARS THE COLD WAR HAD A DIRECT IMPACT ON ITALIAN POLITICS IT ENSURED THAT THE CHRISTIAN DEMOCRATIC PARTY LATER JOINED BY THE SOCIALIST PARTY RULED UNCHALLENGED WHILE THE SIZABLE COMMUNIST PARTY WAS THE MAIN OPPOSITION BUT NEVER GOVERNED THIS ARRANGEMENT WAS THE RESULT OF A SOCIAL CONSENSUS ITALY SAW ITS PARAMOUNT INTEREST IN BEING PART OF THE WEST AND FELT THAT A COMMUNIST REGIME WOULD JEOPARDIZE ITS STANDING FOR 40 YEARS WE HAD AN IMPERFECT BIPARTISAN SYSTEM NO EXCHANGE OF GOVERNMENT WAS POSSIBLE SAYS RICCARDO LEVI A WRITER AND POLITICAL COMMENTATOR IN MILAN BUT THE RIGID SYSTEM WAS COSTLY INEFFICIENT AND INCREASINGLY CORRUPT PROSECUTORS NOW MAINTAIN THAT MUCH OF THE NATION OPERATED ON A COMPLEX SYSTEM OF FAVORS UNDER WHICH THOUSANDS OF POLITICIANS TOOK BRIBES FROM PRIVATE AND STATE BUSINESS AND SOMETIMES BOUGHT VOTES REGARDLESS OF WHETHER THIS PRICE WAS WORTH PAYING FOR ACCEPTANCE IN THE WESTERN CAMP THE RATIONALE FOR MAINTAINING THE SYSTEM DISAPPEARED WITH THE BERLIN WALL A POPULAR MOVEMENT OF DISSATISFACTION WITH THE POLITICAL ELITES QUICKLY CAUGHT ON IN NORTHERN ITALY IT WAS FOLLOWED BY A BROADER PUSH TO REFORM THE TANGLED POLITICAL SYSTEM AND WHEN MILAN JUDGES STARTED CRIMINAL INQUIRIES INTO LEADING POLITICIANS THE MOMENTUM GATHERED PACE PARLIAMENT IS NOW EXPECTED TO DISSOLVE ITSELF AND CALL ELECTIONS AS EARLY AS THIS FALL MANY ITALIANS HOPE IT WILL MEAN THE BIRTH OF A NEW UNTAINTED DEMOCRATIC SYSTEM WITH ALTERNATING PARTIES THE THRUST TO CHANGE IS NOW UNSTOPPABLE MR LEVI SAYS CORRUPTION ALSO HAS FUELED PUBLIC DISGRUNTLEMENT WITH POLITICIANS ELSEWHERE IN EUROPE BRITAIN FRANCE AND SPAIN HAVE BEEN SHAKEN BY ALLEGATIONS THAT THE RULING PARTIES RECEIVED FINANCING FROM DUBIOUS SOURCES GERMANY'S SQUEAKYCLEAN REPUTATION ALSO HAS BEEN TARNISHED BY DISCLOSURES OF DISHONESTY THAT HAVE LED TO THE OUSTER OF TWO CABINET MINISTERS THE LEADER OF THE OPPOSITION SOCIAL DEMOCRATS AND SOME SENIOR STATE OFFICIALS THE GERMAN SCANDALS HAVE BEEN RELATIVELY SMALLSCALE FOR EXAMPLE GUENTHER KRAUSE THE FORMER TRANSPORTATION MINISTER RESIGNED AFTER IT WAS DISCOVERED THAT HE HAD USED PUBLIC MONEY TO EMPLOY A MAID AMONG OTHER THINGS STILL IT HAS CONTRIBUTED TO A GROWING PUBLIC DISAFFECTION WITH POLITICIANS ACCORDING TO DIETER ROTH DIRECTOR OF THE FORSCHUNGSGRUPPE WAHLEN POLLING GROUP IN MANNHEIM THE PRESTIGE OF GERMAN POLITICIANS IS AT ITS LOWEST EVER ASKED WHETHER THEY THINK THE RIGHT PEOPLE ARE IN LEADING POSITIONS IN GERMANY TODAY TWOTHIRDS OF RESPONDENTS SAY NO THAT COMPARES WITH 63 WHO SAID YES IN THE MONTHLY POLL BACK IN OCTOBER 1990 ONLY ONCE BEFORE DURING A 1982 CRISIS THAT LED TO THE COLLAPSE OF HELMUT SCHMIDT'S GOVERNMENT HAS THE PUBLIC REACTION BEEN SO NEGATIVE MR ROTH SAYS HE BLAMES CORRUPTION AND A SENSE THAT CHANCELLOR HELMUT KOHL AND HIS GOVERNMENT HAVE BEEN OVERWHELMED BY THE PROBLEMS OF REUNIFICATION WHICH INCLUDE A SLUMPING ECONOMY AND A SURGE OF EXTREME RIGHTIST ATTACKS ON FOREIGNERS YET MISDEMEANORS BY GERMAN POLITICIANS PALE BY COMPARISON WITH JAPAN WHERE A KINGPIN OF THE RULING PARTY SHIN KANEMARU HAS CONFESSED TO ACCEPTING MILLIONS OF DOLLARS IN ILLEGAL CAMPAIGN CONTRIBUTIONS SOME IN A SHOPPING CART FILLED WITH CASH AND HAS ALSO BEEN CHARGED WITH CHEATING ON HIS TAXES POLITICAL CORRUPTION IS NOTHING NEW IN JAPAN BUT THE LATEST DISCLOSURES COMING ON TOP OF OTHER BIG BRIBERY SCANDALS HAVE BECOME POLITICAL DYNAMITE A LARGE AND INFLUENTIAL GROUP OF LDP POLITICIANS MANY BOLTING FROM THE PARTY JOINED FORCES WITH OPPOSITION GROUPS TO BRING DOWN THE GOVERNMENT IN A NOCONFIDENCE VOTE JAPAN'S LARGEST NEWSPAPER THE YOMIURI SHIMBUN HAS TALKED ABOUT AN ERUPTION OF POPULAR DISSATISFACTION BUT IT REMAINS UNCLEAR WHETHER THE FALL OF THE GOVERNMENT OF KIICHI MIYAZAWA REFLECTS A GRASSROOTS REVOLT OR WAS TRIGGERED BY AN INTERNAL POWERSTRUGGLE IN THE LDP THERE WON'T BE ANY BIG CHANGE SAYS A WEARY MIDDLEAGED COMMUTER IN TOKYO STATION THIS WEEK NO ONE WANTS A REVOLUTION DESPITE SOME ATTEMPTS TO RESTORE PUBLIC CONFIDENCE POLITICAL ELITES IN MANY PLACES STILL FACE AN UPHILL TASK TO RESTORE THEIR CREDIBILITY ALL OF OUR COUNTRIES ARE INWARD LOOKING SAYS MR GISCARD D'ESTAING THE FORMER FRENCH PRESIDENT HE SAYS AN ECONOMIC UPTURN IN ITSELF WON'T BE ENOUGH TO RESTORE A MOOD OF OPTIMISM OUR SOCIETIES HE ADDS NEED TO HAVE A VISION OF THE FUTURE MASAYOSHI KANABAYASHI AND CHRISTOPHER J CHIPELLO CONTRIBUTED TO THIS ARTICLE 9307020057 930702 FIRST FIDELITY JOINS BANKERS TRUST TO FORM CHECKPROCESSING FIRM A WALL STREET JOURNAL NEWS ROUNDUP FIRST FIDELITY BANCORP AND BANKERS TRUST NEW YORK CORP ARE FORMING A COMPANY THAT WILL PROVIDE CHECKPROCESSING FOR THEMSELVES AND OTHER BANKS BECAUSE PROCESSING CHECKS IS COSTLY AND IT IS DIFFICULT TO ADD VALUE FOR A CUSTOMER BANKS ARE BEGINNING TO POOL THEIR RESOURCES TO LOWER COSTS THE NEW JOINTVENTURE IS SIMILAR TO ONE SET UP BY OHIO'S HUNTINGTON BANCSHARES INC AND A BANK CONSULTANT LAST YEAR TO PROCESS CHECKS FOR OTHER DEPOSITORY INSTITUTIONS INITIALLY THE NEW COMPANY CALLED GLOBAL PROCESSING ALLIANCE WILL PROCESS THE TWO BANKS' CHECKS CHEAPER THAN THEY CAN DO IT SEPARATELY FIRST FIDELITY LAWRENCEVILLE NJ TOLD ANALYSTS THAT IT WOULD INITIALLY SAVE THE BANK 5 MILLION ANNUALLY BUT IT CLEARLY HOPES TO PITCH THEIR SERVICES TO OTHER FINANCIAL INSTITUTIONS CHECKPROCESSING HAS NO BRANDED VALUE TO A CUSTOMER WHETHER YOUR BANK DOES IT OR A CENTRAL UTILITY FUNCTION DOES IT YOU DON'T CARE SAYS DIANE GLOSSMAN BANKING ANALYST AT SALOMON BROTHERS IT INDICATES THAT THESE COMPANIES ARE INTERESTED IN KEEPING EXPENSES DOWN AS VOLUME IS ADDED UNIT COSTS GO DOWN IN EFFECT THE BANKS ARE FARMING OUT BUSINESS TO THEMSELVES FIRST FIDELITY HAS ALREADY HIRED A THIRD PARTY TO MANAGE ITS COMPUTER AND BACKOFFICE OPERATIONS BECAUSE FIRST FIDELITY IS PRIMARILY A RETAIL AND SMALL BUSINESS BANK AND BANKERS TRUST A WHOLESALE BANK THEIR CLIENTBASE DOES NOT OVERLAP 9307020056 930702 SENATE PANEL TO INVESTIGATE WATERING OF GRAIN CROPS A SENATE AGRICULTURE SUBCOMMITTEE PLANS HEARINGS THIS FALL ON THE SPREADING PRACTICE WITHIN THE GRAIN INDUSTRY OF ADDING WATER TO GRAIN THE WETTING OF GRAIN WAS THE SUBJECT OF A FRONTPAGE ARTICLE IN THE WALL STREET JOURNAL YESTERDAY SEN THOMAS A DASCHLE D SD THE PANEL'S CHAIRMAN SAID YESTERDAY THE HEARINGS WILL EXAMINE THE SCOPE OF THE PRACTICE AND THE POTENTIAL FOR ABUSE BY MAKING THE GRAIN WEIGH AND COST MORE THE LAWMAKER CONDUCTED HEARINGS IN 1990 ON US GRAIN QUALITY MEANWHILE AN AGRICULTURE DEPARTMENT PROPOSAL TO BAN THE SPRAYING OF WATER ON CROPS IS SPLITTING THE GRAIN INDUSTRY THE PROPOSED BAN STEMS IN PART FROM A YEARLONG FEDERAL INVESTIGATION OF OMAHABASED CONAGRA INC WHOSE PEAVEY CO GRAIN HANDLING UNIT HAS INSTALLED SOPHISTICATED WATERING SYSTEMS IN ABOUT A DOZEN ELEVATORS ACROSS THE NATION CONAGRA MAINTAINS THE SYSTEMS PREVENT GRAIN DUST EXPLOSIONS THE DEPARTMENT'S OFFICE OF INSPECTOR GENERAL IS COMPLETING A REPORT EXAMINING WHETHER CONAGRA'S PRACTICE GOES BEYOND DUST CONTROL 9307020055 930702 CONNECTICUT SCOUT COUNCIL IS SCOLDED FOR COOKIE FLIERS HARTFORD A CONNECTICUT GIRL SCOUT COUNCIL DIDN'T CHEAT SCOUTS OUT OF COOKIE PROFITS THE STATE'S ATTORNEY GENERAL HAS CONCLUDED WHILE HE FOUND NO EVIDENCE OF ILLEGALITY IN LAST YEAR'S COOKIE SALE ATTORNEY GENERAL RICHARD BLUMENTHAL HAD STERN WORDS FOR THE WAY THE CONNECTICUT TRAILS COUNCIL IN NORTH HAVEN DISSEMINATED INFORMATION ABOUT THE SALE TO VOLUNTEER LEADERS HE CALLED THE COUNCIL'S PRINTED FLIERS DEALING WITH THE TROOPS' SHARE OF COOKIE PROCEEDS CONFUSING AND POSSIBLY MISLEADING AND HE URGED THE COUNCIL WHICH RAISED 37 MILLION SELLING COOKIES LAST YEAR TO CONDUCT AN INTERNAL AUDIT TO DETERMINE WHETHER ITS EXPENSES CAN BE REDUCED THE STATE INVESTIGATION WAS PROMPTED BY COMPLAINTS FILED BY A FORMER TROOP LEADER BETH DENTON OF WEST HAVEN WHO CHARGED THAT THE COUNCIL WAS SHORTCHANGING TROOPSPAYING THEM 40 CENTS PER 3 BOX RATHER THAN 14 OR 42 CENTS A BOX AS PROMISED IN PRINTED MATTER DISTRIBUTED TO VOLUNTEER LEADERS THE DISPUTE WAS REPORTED IN A MAY 13 ARTICLE IN THIS NEWSPAPER THAT EXAMINED FINANCIAL ASPECTS OF THE GIRL SCOUT'S NATIONWIDE COOKIE SALE MR BLUMENTHAL NOTED THAT THE FLIER WAS INCONSISTENT IN PORTRAYING THE TROOPS' SHARE OF COOKIE PROCEEDS AS BOTH 14 AND 40 CENTS PER BOX 9307020054 930702 ZAPATA SHAREHOLDERS AT ODDS OVER PROXY ARE TO MEET TODAY SESSION FOLLOWS A POSTPONEMENT LAST WEDNESDAY TO AVOID A FIGHT OVER BOARD SEATS BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON TODAY THE ZAPATA CORP SAGA CONTINUES ZAPATA THE BIGGEST FISHMEAL PRODUCER IN THE COUNTRY ON WEDNESDAY POSTPONED ITS ANNUAL MEETING UNTIL TODAY TO STAVE OFF A PROXY FIGHT BY FLORIDA INVESTOR MALCOLM GLAZER MR GLAZER WHO CONTROLS 32 OF THE COMPANY'S STOCK SEEKS TO PUT HIMSELF AND HIS TWO SONS ON ZAPATA'S EIGHTMEMBER BOARD MR GLAZER AND ZAPATA CHAIRMAN RONALD LASSITER MET FOR SEVERAL HOURS WEDNESDAY MORNING THEY CAME CLOSE ENOUGH TO AN ACCORD THAT WHEN MR LASSITER STRODE TO THE LECTERN TO BEGIN THE STANDINGROOMONLY ANNUAL MEETING HE DELAYED IT UNTIL THIS MORNING TO ALLOW MORE TIME TO NEGOTIATE THIS IS EXCITING SAID BARNEY WHITE A ZAPATA VICE PRESIDENT WHO HAS LOBBIED SHAREHOLDERS WITH LARGE STAKES TO VOTE WITH MANAGEMENT IT'S HARD TO GET PEOPLE EXCITED OVER THE FISHMEAL BUSINESS FISH MEAL IS THE HEART OF ZAPATA WHICH SOLD ITS DRILLINGRIG FLEET SEVERAL YEARS AGO THE COMPANY OWNS 52 BOATS THAT CATCH MENHADEN COMMONLY KNOWN AS PORGIES ZAPATA GRINDS THE FISH UP AND SELLS MOST OF IT TO POULTRY PRODUCERS AS A HIGHPROTEIN ANIMALFOOD SUPPLEMENT THE COMPANY HAS DABBLED IN SELLING FISH MEAL TO PIG FARMERS TOO IN A PRODUCT INSIDERS CALL SQUEAL MEAL ZAPATA WITH 1992 NET INCOME OF 2 MILLION OR TWO CENTS A SHARE ON REVENUE OF 1064 MILLION LAST YEAR ALSO HAS EXPANDED AGGRESSIVELY INTO THE NATURALGAS TRANSMISSION BUSINESS THROUGH A SERIES OF ACQUISITIONS A RECENT REFINANCING TO PAY FOR THE PURCHASES IS ONE ISSUE THAT HAS IRKED MR GLAZER MR GLAZER FROM PALM BEACH FLA DIDN'T RETURN PHONE MESSAGES LEFT AT THE HOUSTON HOTEL WHERE HE WAS STAYING IN RECENT YEARS MR GLAZER ACQUIRED STAKES IN SMALLISH COMPANIES INCLUDING MOTORCYCLE MAKER HARLEYDAVIDSON INC TOY MAKER TONKA CORP WHICH IS A HASBRO INC UNIT AND LAMINATE MAKER FORMICA CORP WHICH IS AN FM HOLDINGS INC UNIT HE CONSIDERED TAKEOVER PROPOSALS FOR EACH OF THEM BUT HE DIDN'T TAKE OVER ANY OF THEM WITH A STOCK PRICE THAT HAS CLOSED BETWEEN 125 AND 6875 CENTS IN THE PAST 52 WEEKS ZAPATA HAS SOME UNHAPPY HOLDERS MUNCHING ON REFRESHMENTS BEFORE WEDNESDAY'S MEETING SHAREHOLDER DON NELSON SAYS I THOUGHT I'D COME GET A COOKIE IT'S THE MOST I'LL MAKE OUT OF THIS STOCK THIS YEAR IF THE PRICE CLIMBS ABOVE 150 HE SAYS HE'LL SELL HIS 2000 SHARES IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE STOCK WAS QUOTED AT 125 UP 125 CENTS OR 11 MR LASSITER TOLD SHAREHOLDERS THE MEETING WAS TO BE DELAYED BECAUSE THERE WASN'T A QUORUM PRESENT HE LATER EXPLAINED THAT MR GLAZER AND A SHAREHOLDER WITH A 20 STAKE WEREN'T IN THE ROOM SO FEWER THAN 50 OF THE VOTES WERE REPRE SENTED BY THEN THE AUDIENCE HAD SWELLED TO MORE THAN 140 PEOPLE A FOURFOLD INCREASE FROM LAST YEAR'S MEETING SAYING HE DOUBTED THEY'D ALL COME BACK TODAY MR LASSITER DECIDED HE'D TAKE THE OPPORTUNITY EVEN THOUGH THE ANNUAL MEETING REALLY WASN'T TAKING PLACE TO PRESENT THE PREPARED SLIDE SHOW AND SPEECH THAT REVIEWED THE COMPANY'S ACTIVITIES AND PLANS WHEN HE OPENED THE NONMEETING TO QUESTIONS A SKEPTICAL STOCKHOLDER SAID HE BECAME CONVINCED BY MR LASSITER'S PRE SENTATION AND DESPERATELY WANTED TO VOTE WITH MANAGEMENT I'LL COME GET YOUR CARD MR LASSITER SAID I'M NOT PROUD 9307020053 930702 US AUTO PRODUCTION TO RISE 57 FOR WEEK DETROIT THE 10 MAJOR AUTO MAKERS THAT BUILD VEHICLES IN THE US PLAN TO ASSEMBLE 197198 CARS AND LIGHT TRUCKS THIS WEEK UP 57 FROM 125816 A YEAR AGO IN THE YEARAGO WEEK ASSEMBLY PLANTS AT FORD MOTOR CO AND SUBARUISUZU AUTOMOTIVE INC WERE IDLE FOR SUMMER VACATIONS SUBARUISUZU IS JOINTLY OWNED BY JAPAN'S ISUZU MOTORS LTD AND SUBARU OF AMERICA A UNIT OF JAPAN'S FUJI HEAVY INDUSTRIES LTD THE PLANNED OUTPUT FOR THIS WEEK IS OFF 124 FROM THE 225130 VEHICLES BUILT LAST WEEK BECAUSE ASSEMBLY PLANTS AT HONDA MOTOR CO AND MITSUBISHI MOTORS CORP'S DIAMONDSTAR IN NORMAL ILL ARE IDLE FOR ONEWEEK SUMMER VACATIONS AND MOST AUTO ASSEMBLY PLANTS ARE IDLE TODAY AND MONDAY IN OBSERVANCE OF THE FOURTH OF JULY HOLIDAY GENERAL MOTORS CORP SAID ITS ORION TOWNSHIP MICH ASSEMBLY PLANT WILL BE IDLE BEGINNING NEXT WEEK THROUGH AUG 30 FOR MODEL CHANGEOVER GM ALSO SAID IT IS PLACING 2100 HOURLY WORKERS AT ITS YPSILANTI MICH ASSEMBLY PLANT ON TEMPORARY LAYOFF BEGINNING NEXT THURSDAY GM IS APPEALING A COUNTY COURT RULING BARRING IT FROM PERMANENTLY CLOSING ITS YPSILANTI ASSEMBLY PLANT ALSO CALLED WILLOW RUN BECAUSE IT ACCEPTED TAX BREAKS FROM THE MUNICIPALITY GM SAID THE WORKERS WILL BE PLACED ON PERMANENT LAYOFF IF THE STATE COURT RULES IN ITS FAVOR AND LIFTS THE INJUNCTION GM HAD PREVIOUSLY ANNOUNCED THAT IT WOULD CONSOLIDATE PRODUCTION OF ITS LARGE REARDRIVE CARS AT ITS FACTORY IN ARLINGTON TEXAS CHRYSLER CORP SAID ITS WINDSOR AND PILLETTE ONTARIO ASSEMBLY PLANTS WILL BE IDLE NEXT WEEK FOR MODEL CHANGEOVER THE WINDSOR FACTORY WHICH BUILDS MINIVANS WILL RESUME PRODUCTION JULY 19 THE PILLETTE ASSEMBLY PLANT WHICH BUILDS LARGE VANS WILL BE IDLE UNTIL AUG 2END 9307020052 930702 AARP AFLCIO OTHERS FORM HEALTHCARE GROUP WASHINGTON ABOUT 15 GROUPS INCLUDING THE AFLCIO AND THE AMERICAN ASSOCIATION OF RETIRED PERSONS ARE PUTTING TOGETHER A NOTFORPROFIT ORGANIZATION TO PROMOTE HEALTHCARE REFORM THE ORGANIZATION CALLED THE HEALTH PROJECT ISN'T BEING FORMED TO PUSH PRESIDENT CLINTON'S HEALTHCARE PLAN WHICH HAS YET TO BE FINALIZED AND RELEASED MEMBERS SAID NO ONE HAS SIGNED ON TO ANY PLAN YET WHAT WE'VE SIGNED ON TO IS THE CAUSE OF HEALTH REFORM SAID JOHN ROTHER LEGISLATIVE DIRECTOR FOR THE AARP AND PRESIDENT OF THE NEW ORGANIZATION WE'LL HAVE TO SEE HOW THE CLINTON PLAN MEASURES UP NEVERTHELESS ITS WORK COULD HELP THE WHITE HOUSE GET BROAD REFORM LEGISLATION THROUGH CONGRESS MR ROTHER SAID THE GROUP WILL PROBABLY DO PROMOTIONAL WORK LOBBYING AND GRASSROOTS ORGANIZING SO FAR EACH GROUP IS BEING ASKED TO PUT UP 5000 TOWARD OPERATIONAL COSTS BUT A MORE AMBITIOUS FUNDRAISING EFFORT WILL PROBABLY TAKE PLACE EVENTUALLY AMONG THE GROUPS BEING ASKED TO JOIN IS THE AMERICAN HOSPITAL ASSOCIATION A SPOKESMAN SAID THE AHA IS REVIEWING WHETHER IT WILL PARTICIPATE MR ROTHER ALSO SAID THE HEALTH PROJECT IS CONSIDERING RECRUITING BUSINESSES 9307020051 930702 FLORIDA INSURANCE OFFICIALS INVESTIGATE RUEDLINGER TALLAHASSEE FLA FLORIDA INSURANCE OFFICIALS HAVE LAUNCHED AN INVESTIGATION OF DOUG RUEDLINGER WHOSE COMPANIES OFFERED CATASTROPHIC AND LIABILITY POLICIES TO HIGH SCHOOLS IN THE STATE FLORIDA'S DEPARTMENT OF INSURANCE NOTIFIED MR RUEDLINGER THAT IT INTENDED TO ISSUE AN ORDER REMOVING YOU OR RESTRICTING OR PROHIBITING PARTICIPATION BY YOU IN THE AFFAIRS OF HIS LIABILITY AND CATASTROPHIC UNDERWRITER UNITED INTERNATIONAL INSURANCE CO AND HIS DOUG RUEDLINGER INC INSURANCE AGENCY THE STATE CHARGED MR RUEDLINGER ENGAGED IN ILLEGAL ACTIVITY OR MISMANAGEMENT OF BUSINESS ACTIVITIES FLORIDA OFFICIALS NOTED THAT 17 STUDENTS HAD CLAIMS ESTIMATED AT MORE THAN 2 MILLION WITH UNITED INTERNATIONAL AND HAD NOT RECEIVED PAYMENTS SINCE IT WAS TAKEN OVER BY RHODE ISLAND OFFICIALS LAST SPRING A SECRETARY FOR MR RUEDLINGER SAID HE WASN'T AVAILABLE FOR COMMENT MR RUEDLINGER HAS BLAMED HIS COMPANIES' PROBLEMS ON INEPT MANAGERS AND THE CANCELLATION OF AN AGREEMENT WHICH GENERATED THE BULK OF HIS REVENUE WITH ANOTHER UNDERWRITER HE HAS 21 DAYS TO RESPOND TO THE STATE'S NOTICE AND REQUEST A HEARING 9307020048 930702 BUSINESS BRIEF MERIS LABORATORIES INC TWO SHAREHOLDERS SUE FIRM SEVERAL DIRECTORS FOR FRAUD TWO SHAREHOLDERS OF MERIS LABORATORIES INC FILED A LAWSUIT AGAINST THE SAN JOSE CALIF COMPANY AND SEVEN OF ITS CURRENT AND FORMER DIRECTORS ALLEGING BREACH OF FIDUCIARY DUTY AND FRAUDULENT MISSTATEMENT OF FINANCIAL RESULTS THE DERIVATIVE SUIT FILED IN SANTA CLARA COUNTY SUPERIOR COURT SEEKS 35 MILLION IN RECOVERIES AND DAMAGES STEMMING FROM A 1992 INTERNAL POWER STRUGGLE THAT LED TO THE OUSTER OF FOUNDER AND FORMER CHIEF EXECUTIVE CHRIS RIEDEL AND THE PROMOTION OF STEPHEN KASS TO THAT POST THE SUIT SEEKS A REFUND TO MERIS OF AS MUCH AS 18 MILLION PAID TO MR RIEDEL LAST OCTOBER IN SETTLEMENT OF THE DISPUTE THE SUIT ALLEGES THE SETTLEMENT WAS PART OF AN ATTEMPT BY MR KASS AND OTHER DIRECTORS TO CONCEAL FALSE FINANCIAL FILINGS AND MAINTAIN CONTROL MR KASS SAID HE HAD NOT SEEN THE COMPLAINT AND DECLINED TO COMMENT ON IT I'M UNAWARE OF ANY FINANCIAL IMPROPRIETIES AS ARE OUR AUDITORS WE ALSO HAD AN INDEPENDENT INVESTIGATING COMMITTEE REVIEW THEM AND THEY FOUND NOTHING WRONG HE SAID 9307020047 930702 POLITICS & POLICY CLINTON'S FORESTMANAGEMENT PROPOSAL IS GIVEN A MOSTLY LUKEWARM RECEPTION BY ROSE GUTFELD AND CHARLES MCCOY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON DREW MOSTLY LUKEWARM OR SHARPLY NEGATIVE REVIEWS FOR HIS COMPREHENSIVE FORESTMANAGEMENT PLAN DESIGNED TO REVIVE NORTHWEST TIMBER COMMUNITIES WHILE PRESERVING THE SPOTTED OWL UNVEILING HIS PACKAGE AT A WHITE HOUSE BRIEFING MR CLINTON CALLED IT SCIENTIFICALLY SOUND ECOLOGICALLY CREDIBLE AND LEGALLY DEFENSIBLE HE WAS JOINED BY VICE PRESIDENT AL GORE AND SEVERAL CABINET MEMBERS THE PLAN WILL BE SUBMITTED TO MEET A JULY 16 COURT DEADLINE SET BY JUDGE WILLIAM DWYER IN SEATTLE IT CALLS FOR REDUCING TIMBER HARVESTS IN THE REGION TO AN AVERAGE 12 BILLION BOARD FEET ANNUALLY FOR 10 YEARS THOUGH OFFICIALS PREDICTED THAT MORE THAN TWO BILLION COULD BE MADE AVAILABLE OVER THE NEXT YEAR BY DRAWING FROM TIMBER ALREADY UNDER CONTRACT OR BEING PREPARED FOR SALE THE PACKAGE ALSO WOULD SET ASIDE CLOSE TO FIVE MILLION ACRES OF RESERVES THAT ARE LARGELY OFFLIMITS TO LOGGING AND WOULD ESTABLISH 10 SOCALLED ADAPTIVE MANAGEMENT AREAS TO TRY TO INCREASE THE INVOLVEMENT OF LOCAL GROUPS IN FOREST POLICY AND ENCOURAGE ECOLOGICAL AND ECONOMIC INNOVATION TO OFFSET THE ANTICIPATED LOSS OF 6000 TIMBERINDUSTRY JOBS ON TOP OF THE SEVERE EMPLOYMENT DECLINE THAT HAS ALREADY BESET THE REGION MR CLINTON IS PROPOSING A FIVEYEAR 12 BILLION ECONOMICASSISTANCE PACKAGE DESIGNED TO CREATE 8000 JOBS AND PROVIDE RETRAINING OPPORTUNITIES IN ADDITION PRESIDENT CLINTON SAID HE WOULD SIGN LEGISLATION TO RESTORE THE BAN ON THE EXPORT OF RAW LOGS FROM STATE LANDS THAT WAS RECENTLY STRUCK DOWN IN COURT AND HE EXPRESSED SUPPORT FOR PENDING LEGISLATION THAT WOULD ELIMINATE TAX INCENTIVES FOR THE EXPORT OF RAW LOGS FROM OTHER LANDS THE FEDERAL GOVERNMENT ALSO WILL HELP BRING TO MARKET BACKLOGGED TIMBER SALES FROM INDIAN RESERVATIONS EASE RESTRICTIONS ON TIMBER HARVEST FROM CERTAIN NONFEDERAL LANDS AND ACCELERATE EFFORTS TO HARVEST DEAD AND DYING TIMBER ON THE EAST SIDE OF THE CASCADE MOUNTAINS ENVIRONMENTAL GROUPS GENERALLY WERE CRITICAL OF ELEMENTS OF THE PLAN NOTABLY THE HARVEST LEVELS BUT SOME GAVE THE PRESIDENT CREDIT FOR MOVING TO RESOLVE THE CRISIS THE FLAWS CAN BE FIXED IF WE ALL WORK TOGETHER SAID JAY HAIR PRESIDENT OF THE NATIONAL WILDLIFE FEDERATION ANDY KERR HEAD OF THE OREGON NATURAL RESOURCES COUNCIL SAID FOREST POLICY WAS A CAR HEADING AT 100 MILES PER HOUR TOWARD A CLIFF WITH THIS PLAN THE CAR HAS SLOWED DOWN TO 30 BUT IT'S STILL HEADING TOWARD A CLIFF REACTION FROM INDUSTRY WAS GENERALLY MORE SEVERE WALTER MINNICK CHIEF EXECUTIVE OFFICER OF TJ INTERNATIONAL CO A LUMBERPRODUCTS MAKER PRAISED THE EFFORT TO FREE UP TIMBER QUICKLY BUT HE SAID THE TARGET OF 12 BILLION BOARD FEET WILL MEAN SUBSTANTIAL CHANGE PAIN AND HARDSHIP MARK REY VICE PRESIDENT FOREST RESOURCES AT THE AMERICAN FOREST AND PAPER ASSOCIATION SAID THERE WILL BE HIGHER LUMBER PRICES A SLOWDOWN IN HOME PURCHASES DUE TO GREATER COSTS AND A STALLED ECONOMIC RECOVERY REP GEORGE MILLER D CALIF SAID THE PRESIDENT'S PLAN FOR THE FIRST TIME IN A DECADE WOULD SEEK TO BRING THE MANAGEMENT OF OUR FEDERAL FORESTS INTO COMPLIANCE WITH THE LAW SEN PAT LEAHY D VT CALLED THE PLAN SENSIBLE COMPASSIONATE AND SCIENTIFICALLY SOUND BUT OTHER LAWMAKERS INCLUDING SOME MEMBERS OF THE NORTHWEST DELEGATION EXPRESSED DISSATISFACTION 9307020046 930702 TECHNOLOGY BRIEF BORLAND INTERNATIONAL INC FIRM'S DEFENSES IN LOTUS SUIT ARE REJECTED BY US COURT A US DISTRICT COURT JUDGE IN BOSTON REJECTED BORLAND INTERNATIONAL INC'S DEFENSES AGAINST LOTUS DEVELOPMENT CORP'S CHARGES THAT BORLAND COPIED FROM LOTUS'S 123 SPREADSHEET IT APPEARED TO MARK ANOTHER SETBACK FOR BORLAND IN THE LONGRUNNING CASE IN WHICH THE COURT HAS ALREADY RULED THAT BORLAND ILLEGALLY COPIED PARTS OF THE SOFTWARE PROGRAM A LOTUS SPOKESMAN SAID THE RULING CLEARS THE WAY FOR A TRIAL TO DETERMINE DAMAGES IN THE CASE BORLAND IS BASED IN SCOTTS VALLEY CALIF THE CASE IS BEING HELD IN BOSTON BECAUSE LOTUS IS BASED THERE IN THE TOWN OF CAMBRIDGE A BORLAND SPOKESMAN SAID THE COMPANY WAS DISAPPOINTED BUT NOT SURPRISED BY THE DECISION YESTERDAY BUT REPEATED THAT THE COMPANY EXPECTS THE COPYRIGHT CASE TO BE ULTIMATELY RESOLVED IN AN APPEAL A HEARING DATE OF AUG 19 WAS SET TO DISCUSS REMAINING ISSUES IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY BORLAND CLOSED AT 2175 DOWN 875 CENTS AND LOTUS CLOSED AT 3375 DOWN 875 CENTS 9307020044 930702 WHAT'S NEWS WORLDWIDE CLINTON PLEDGED TO SEEK FLOOD ASSISTANCE FOR MIDWESTERN FARMERS THE PRESIDENT WHO PLANS TO VISIT IOWA ON SUNDAY TO INSPECT THE DAMAGE SAID HE WOULD ASK CONGRESS FOR MONEY TO AID FARMERS AS SOON AS IT IS CLEAR HOW MUCH OF THIS YEAR'S CORN AND SOYBEAN CROP HAS BEEN LOST CLINTON WAS BRIEFED BY AGRICULTURE SECRETARY ESPY WHO TOURED PARTS OF WISCONSIN IOWA MINNESOTA AND SOUTH DAKOTA BY HELICOPTER WEDNESDAY AND SAW THOUSANDS OF ACRES OF STUNTED CROPS AND FLOODED LAND CLINTON CAN MAKE DISASTER DECLARATIONS ALLOWING FARMERS TO QUALIFY FOR LOANS BUT CONGRESS WOULD HAVE TO MAKE ANY EMERGENCY APPROPRIATION TO PROVIDE PAYMENTS OFFSETTING FARM LOSSES GERMANY CLAMPED TIGHT NEW LIMITS ON POLITICAL ASYLUM RIGHTS AND POLICE WERE DEPLOYED AT BORDERS TO TURN BACK ILLEGAL REFUGEES THE LAW THAT TOOK EFFECT YESTERDAY REVERSED AN OPENDOOR ASYLUM POLICY THE JUSTICE DEPARTMENT HAS DECIDED TO TAKE INTO CUSTODY THE ISLAMIC CLERIC WHOSE FOLLOWERS HAVE BEEN CHARGED IN A TERRORIST PLOT AND THE WORLD TRADE CENTER BOMBING IN NEW YORK FEDERAL SOURCES SAID AN INTERNAL REPORT CRITICIZES SEVERAL MEMBERS OF THE WHITE HOUSE STAFF FOR FIRING SEVEN TRAVEL OFFICE EMPLOYEES AND PERSUADING THE FBI TO INVESTIGATE THE WORKERS A WHITE HOUSE AIDE SAID THE OFFICIAL SAID THAT NO STAFF MEMBERS WOULD LOSE THEIR JOBS BUT HE DIDN'T RULE OUT DISCIPLINARY ACTION THE REPORT IS TO BE RELEASED TODAY CONGRESS SENT CLINTON A 35 BILLION SPENDING MEASURE THAT SALVAGES PORTIONS OF HIS ECONOMIC STIMULUS PLAN BUT GIVES FAR LESS FOR DOMESTIC PROGRAMS THAN HE HAD REQUESTED CLINTON WILL ACCEPT A FEDERAL COMMISSION'S PLAN TO CLOSE OR SCALE BACK DOZENS OF MILITARY BASES AIDES SAID SEPARATELY THE PENTAGON ANNOUNCED SHUTDOWNS OR REDUCTIONS AT 92 US INSTALLATIONS OVERSEAS BOSNIAN SERBS AND CROATS STARTED DEMANDING ROAD TOLLS FROM UN RELIEF CONVOYS AND POUNDED MUSLIMLED TROOPS SHOWING GROWING COOPERATION BETWEEN THE TWO FORMER FOES IN BELGRADE MEANWHILE JAILED SERB OPPOSITION LEADER DRASKOVIC BEGAN A HUNGER STRIKE AND SAID HE IS READY TO DIE IF HE ISN'T RELEASED FROM PRISON A GUNMAN OPENED FIRE IN A LAW FIRM ON THE 34TH FLOOR OF A SAN FRANCISCO HIGHRISE FATALLY SHOOTING EIGHT PEOPLE BEFORE KILLING HIMSELF AUTHORITIES SAID AT LEAST SIX PEOPLE WERE WOUNDED IN THE MIDAFTERNOON SHOOTING AT PETTIT & MARTIN POLICE OFFICIALS COULD PROVIDE NO IMMEDIATE INFORMATION ON A POSSIBLE MOTIVE IRAQ'S DEPUTY PRIME MINISTER CALLED THE US MISSILE ATTACK ON BAGHDAD UNJUSTIFIED BUT SAID HIS GOVERNMENT WOULDN'T RETALIATE FOR IT OR CONDONE ACTS OF REVENGE BY OTHERS MEANWHILE PENTAGON OFFICIALS SAID THAT IRAQ'S MILITARY FORCES APPARENTLY HAVE RELAXED A HIGH STATE OF ALERT THAT FOLLOWED LAST WEEKEND'S ATTACK US BLOOD CENTERS WOULD BE SUBJECT TO STRICTER STANDARDS TO MINIMIZE THE RISKS OF PEOPLE CONTRACTING HIV HEPATITIS OR ANY OTHER DISEASE FROM TRANSFUSIONS UNDER PROPOSED GOVERNMENT GUIDELINES THE UN SAID HAITI'S MILITARY LEADERS WERE NEAR A PACT TO RESTORE TO POWER OUSTED PRESIDENT ARISTIDE SOURCES SAID THE PACT WOULD GRANT THE LEADERS AMNESTY FOR ANY CRIMES CONNECTED WITH THE COUP SECRETARY OF STATE CHRISTOPHER SEEMED TO SIDE WITH ISRAEL'S POSITION ON JERUSALEM SAYING THE QUESTION IS A FINAL STATUS ISSUE TO BE RESOLVED IN THE LAST STAGES OF PALESTINIANISRAELI TALKS HE ALSO SAID HE WASN'T SURPRISED THAT THE TWO SIDES DIDN'T IMMEDIATELY ACCEPT A US DRAFT PROPOSAL TO BRIDGE EXCEEDINGLY DIFFICULT DIFFERENCES TWO ARABS SHOT AT AN ISRAELI BUS IN JERUSALEM FATALLY WOUNDING AN ISRAELI WOMAN AND THEN HIJACKED A CAR DRIVEN BY ANOTHER WOMAN BEFORE ALL THREE DIED IN A SHOOTOUT AT AN ARMY ROADBLOCK SPACE SHUTTLE ENDEAVOUR LANDED IN FLORIDA ENDING A SUCCESSFUL 10DAY MISSION TO CAPTURE AN ORBITING EUROPEAN SCIENCE SATELLITE THE SIX ASTRONAUTS ALSO CONDUCTED 22 EXPERIMENTS IN A SPACE LABORATORY EL SALVADOR'S PRESIDENT REPLACED ALL FOUR OF THE COUNTRY'S TOP MILITARY OFFICERS WITH A NEW MORE MODERATE GROUP OF LEADERS COMPLETING A PURGE OF OFFICERS WHO HAD BEEN ACCUSED OF HUMANRIGHTS VIOLATIONS 9307020043 930702 INTERNATIONAL RUSSIA NOW FIELDS A POTEMKIN MILITARY ARMED FORCES EXCEPT NUCLEAR UNITS GROW HOLLOW BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIA'S NUCLEAR FORCES ARE STILL CAPABLE OF DESTROYING THE PLANET BUT ITS CONVENTIONAL ARMY IS SO WEAK IT CAN'T EVEN ATTRACT ENOUGH SOLDIERS TO MAN GUARD POSTS AT ITS CAMPS IT'S AN ANOMALY THAT WORRIES RUSSIAN AND WESTERN DEFENSE ANALYSTS IF RUSSIA'S ENFEEBLED ARMY WERE TO FACE A SERIOUS THREAT FROM ACROSS ITS BORDER THE ANALYSTS REASON MOSCOW MIGHT BE TEMPTED TO MAKE A SMALLSCALE NUCLEAR STRIKE THE PROBLEM WITH THE RUSSIAN MILITARY IS THAT THE ONLY BATTLEREADY FORCE IS THE NUCLEAR WEAPONRY SAYS PAVEL FELGENHAUER A DEFENSE ANALYST FOR THE RUSSIAN DAILY SIGODNIYA THE FORMER SOVIET MILITARY HAS BEEN DETERIORATING SINCE THE BREAKUP OF THE USSR AND THE WITHDRAWAL OF TROOPS FROM MOSCOW'S FORMER EAST BLOC ALLIED NATIONS CONSCRIPTION LEVELS ARE AT AN ALLTIME LOW OFFICIALLY THE DEFENSE MINISTRY ESTIMATES THAT WELL OVER HALF OF DRAFTAGE MEN AVOID SERVICE OFTEN WITHOUT LEGAL DEFERMENTS IN MOSCOW THE NOSHOW FIGURE IS CLOSER TO 95 DEFENSE MINISTER PAVEL GRACHEV HAS PROPOSED CUTTING ACTIVE DUTY TO ONE YEAR FROM 18 MONTHS TO MAKE SERVICE MORE ATTRACTIVE IN PARTS OF SIBERIA THE RATIO OF SOLDIERS TO OFFICERS IS SAID TO BE ABOUT 1 TO 1 COMPARED WITH ABOUT 20 TO 1 IN US COMBAT UNITS SENIOR OFFICERS SOMETIMES HAVE TO PERFORM MENIAL TASKS SUCH AS MANNING THE GUARD POSTS THESE ARMIES ARE COMBATINEFFECTIVE SAYS A WESTERN MILITARY ATTACHE IN MOSCOW ABOUT ALL YOU CAN DO IS TRY TO MAINTAIN EQUIPMENT THE LEVEL OF TRAINING ALSO IS DOWN TO ABOUT HALF THAT OF A FEW YEARS AGO ANALYSTS ESTIMATE THE WESTERN ATTACHE DESCRIBES TRAINING THIS WAY SHIPS AREN'T GOING TO SEA TANKS AREN'T BEING DRIVEN AND PLANES AREN'T FLYING A SENIOR COMMANDER OF THE BLACK SEA FLEET CLAIMED BY BOTH RUSSIA AND UKRAINE RECENTLY JOKED ACIDLY THAT THE POORLY MAINTAINED FLEET WILL PROBABLY JUST SINK IN A FEW YEARS ANYWAY THERE IS LITTLE EVIDENCE THAT THE DETERIORATION EXTENDS TO RUSSIA'S NUCLEAR FORCES THOUGH THERE IS CONCERN THIS COULD HAPPEN THE US IS OFFERING HELP TO ENSURE THAT NUCLEAR WEAPONS ARE DISMANTLED OR AT LEAST PROPERLY MAINTAINED DESPITE ITS WOES THE MILITARY HASN'T BECOME A SOURCE OF INSTABILITY AT LEAST NOT YET THIS SPRING WHEN PRESIDENT BORIS YELTSIN LOCKED HORNS WITH OPPONENTS IN PARLIAMENT THE MILITARY MADE CLEAR IT WOULDN'T GET INVOLVED IN THE STRUGGLE THE ARMY HAD THE POTENTIAL TO INFLUENCE THE SITUATION AND IT DIDN'T IT STAYED OUT SAYS A SENIOR WESTERN DIPLOMAT IN MOSCOW MR YELTSIN HAS OFFERED WHAT HE CAN TO ENSURE THAT HIS OFFICER CORPS REMAINS PASSIVE WHILE HE HASN'T BEEN ABLE TO PROVIDE OFFICERS WITH MUCHNEEDED HOUSING HE HAS DOUBLED SALARIES TWICE IN RECENT MONTHS HE ALSO HAS DECREED SCORES OF PROMOTIONS HE RECENTLY LIFTED 80 OFFICERS TO THE RANK OF GENERAL AT A TIME WHEN THE ARMED FORCES ARE SUPPOSED TO BE SHRINKING AS THE SENIOR DIPLOMAT QUIPS THE MILITARY HAS BECOME A SOCIAL SECURITY SYSTEM AS WELL AS A NATIONAL SECURITY SYSTEM THE ARMY'S LOW POINT PROBABLY CAME LAST AUTUMN WHEN MILITARY OFFICIALS HAD TROUBLE ROUNDING UP A TOKEN PEACEKEEPING FORCE TO SEND TO INGUSHETIA THE SCENE OF ETHNIC FIGHTING IN SOUTHERN RUSSIA THE FEW COMBATREADY FORCES WERE ALREADY COMMITTED ELSEWHERE TRYING TO STOP THE FIGHTING IN MOLDOVA AND SOUTH OSSETIA MR FELGENHAUER THE MILITARY AFFAIRS CORRESPONDENT SAYS THE ARMY'S DEPUTY CHIEF OF STAFF MIKHAIL KOLESNIKOV WAS UP ALL NIGHT OCT 31 ROUNDING UP 2500 TROOPS HE WAS REDUCED TO TAKING 10 FROM ONE UNIT A FEW DOZEN FROM ANOTHER AND SO FORTH ENTIRE UNITS REFUSED TO GO TO THE TENSE REGION AND RUSSIAN LAW FORBIDS SENDING ANYONE WHO DOESN'T VOLUNTEER THAT WAS THE MOST INTENSE POINT OF THE MILITARY CRISIS SAYS MR FELGENHAUER THAT MADE PEOPLE REALIZE THAT SOMETHING HAD TO BE DONE SINCE THEN THE DEFENSE AND INTERIOR MINISTRIES HAVE REORGANIZED THEIR FORCES BETWEEN THE TWO MINISTRIES MR FELGENHAUER SAYS RUSSIA NOW MAINTAINS ABOUT FOUR EFFECTIVE RAPID DEFENSE FORCES INDEED RUSSIA'S PEACEKEEPING FORCES HAVE PERFORMED WELL SHOWING BOTH RESTRAINT AND ORGANIZATION BUT THEY ARE STRETCHED SO THIN THAT THE SAME TWO OR THREE AIRBORNE UNITS HAVE BEEN SENT FROM FLASH POINT TO FLASH POINT BUT THE BULK OF RUSSIA'S ARMED FORCES SEEMS BADLY PREPARED FOR THE MILITARY CHALLENGES THE COUNTRY FACES RUSSIA'S ARMY IS WRONG FOR THE WORLD IT NOW FINDS ITSELF IN SAYS THE WESTERN ATTACHE TO PRESIDE OVER A TERRITORY THAT COVERS 11 TIME ZONES THE MILITARY NEEDS LIGHT MOBILE FORCES NOT THE HEAVY TANK UNITS THAT MANNED THE BORDERS AND THAT HAVE RETURNED TO RUSSIA FROM THE EAST BLOC LAST MONTH MR YELTSIN SPOKE OF THE NEED FOR SIGNIFICANT RESTRUCTURING OF THE ARMED FORCES THOUGH IT ISN'T CLEAR WHERE THE MONEY WOULD COME FROM TO CARRY IT OUT WHAT WE NEED ARE MOBILE UNITS THAT COULD BE DEPLOYED IF THE NEED ARISES ANYWHERE IN THE COUNTRY MR YELTSIN SAID BY 1995 HE PROPOSES TO REDUCE THE MILITARY TO 15 MILLION MEN DOWN FROM ABOUT 25 MILLION NOW AND FROM THE PEAK OF ABOUT FIVE MILLION IN THE MID1980S 9307020042 930702 MARKETING & MEDIA ADVERTISING RECESSIONSCARRED INDUSTRY FINDS LESS GLAMOUR GLITZ AT CANNES BY KAROLINE DURR CANNES FRANCE AN ANIMATED ARMY OF CAVE MEN CHASE THEIR DINNER A GIANT MAMMOTHACROSS THE SCREEN A DEEP VOICE RESONATES HUNGRY CAPTION CUP NOODLES THE CANNES AUDITORIUM ERUPTS WITH BOOS AND HISSES AND THE CURTAIN CLOSES ANTICLIMATICALLY TO MUSIC AND BALLOONS FALLING FROM THE CEILING SUCH WAS THE AUDIENCE RECEPTION TO THIS YEAR'S GRAND PRIX WINNER AT THE INTERNATIONAL ADVERTISING FESTIVAL IN CANNES THE SPOT WAS PRODUCED BY AD AGENCY HAKUHODO TOKYO FOR NISSIN FOOD PRODUCTS CO OF JAPAN BUT EVEN THE JURY MEMBERS WHO PICKED IT CONCEDE THAT ITS GREATEST ATTRIBUTE WAS BEING FROM A COUNTRY WHOSE ADS ARE GENERALLY EVEN LESS CREATIVE THAN THIS PRIZE WINNER IT WAS ONE OF MANY NOTSOHIGH MOMENTS LAST WEEK AT A FESTIVAL THAT JUST WASN'T WHAT IT USED TO BE IN THE RECESSIONWRACKED WORLD OF ADVERTISING THE ANNUAL SHOW IN CANNES HAS LOST SOME OF ITS GLAMOUR AND EXTRAVAGANCE THIS YEAR WHAT REMAINED WAS THE USUAL SCHMOOZING BACKSLAPPING AND BACKSTABBING ABOUT 4000 DELEGATES 10 FEWER THAN USUAL SQUEEZED INTO THE FRENCH RESORT FROM AROUND THE WORLD TO CELEBRATE THE BEST ADVERTISING FILMS AND TO PICK UP AN AWARD OR TWO OR PERHAPS A CLIENT SCARS WERE EVIDENT FROM EARLIER IN THE 1990S WHEN MANY SMALLER AD AGENCIES DISAPPEARED VIA BANKRUPTCIES AND TAKEOVERS ORGANIZERS RELINQUISHED SOME OF THE FESTIVAL'S GLITZ TURNING THE EVENT MORE SERIOUS WITH INDUSTRY SEMINARS THE FESTIVAL IS ONLY A SHADOW OF ITS FORMER SELF COMPLAINED MIKE HALL LONDONBASED DIRECTOR OF TELEVISION PRODUCTION AT J WALTER THOMPSON EUROPE NORMALLY THERE WERE 20 PARTIES A NIGHT NOW YOU CAN ONLY GO TO A LOUSY FIVE HE LAMENTED LOOKING MORE LIKE A TOURIST THAN AN AD EXECUTIVE IN HIS HAWAIIAN SHIRT AND SHORTS BUT EVERYONE HERE AGREED THAT CANNES REMAINS THE MOST INTERNATIONAL OF AD FILM FESTIVALS AND THE MOST IMPORTANT INTERNATIONALLY ESPECIALLY AFTER THE CLIO AWARDS IN THE US RAN OUT OF MONEY LAST YEAR AND NOW FACE AN UNCERTAIN FUTURE MOST OF THE 46 LION AWARDS GIVEN AWAY HERE WENT TO AGENCIES AND PRODUCTION COMPANIES FROM BRITAIN AND SPAIN WITH US SHOPS IN THIRD PLACE BRITISH FORCES SCOOPED UP A TOTAL OF 20 GOLD SILVER AND BRONZE LIONS INCLUDING THE PRESTIGIOUS TROPHY FOR BEST AGENCY OF THE YEAR WHICH WENT TO BARTLE BOGLE HEGARTY LONDON SPAIN'S SHOPS WON 19 LIONS EVEN THOUGH THEY ENTERED 112 FEWER NOMINATIONS THAN THE UK CONTINGENT US AGENCIES TOOK AWAY 17 GOLD SILVER AND BRONZE LIONS BUT THEY SUBMITTED A MASSIVE 802 ENTRIES MORE THAN SPAIN AND BRITAIN COMBINED THE TREND IN COMMERCIALS OOPS AD PEOPLE PREFER TO CALL THEM FILMS WAS CLEARLY AWAY FROM SOCALLED LIFESTYLE ADS WITH FLASHY CARS AND BEAUTIFUL WOMEN AND TOWARD DOWNTOEARTH AND OFTEN NOSTALGIC FARE COCACOLA'S BEAUTIFUL PEOPLE WERE OUT PEPSI'S LOUD FUNLOVING YOUNGSTERS WERE IN THERE IS A RETURN TO REALISM FEELGOOD ADVERTISING IS DECLINING SAYS FRANK DEVITO CREATIVE DIRECTOR OF INTERPUBLIC GROUP'S LINTAS WORLDWIDE LONDON CANNES'S GOLD LION TROPHIES REMAIN BUSINESS MAGNETS LESLIE SWEET ART DIRECTOR AT LITTLEKNOWN STREETSMART ADVERTISING OF NEW YORK SAYS THE TROPHY SHE WON THIS YEAR WILL PUT HER AGENCY ON THE MAP HER SHOP'S WINNING SPOT WAS ONE OF THE MOST TOUCHING ADS IN THE FILM CATEGORY FOR CHARITABLE CAUSES PRODUCED FOR THE COALITION FOR THE HOMELESS IT SHOWS A SOBERING SERIES OF HOMELESS PEOPLE SINGING THE FRANK SINATRA CLASSIC NEW YORK NEW YORK MEANWHILE THE STAR IN CANNES WAS TARSEM A YOUNG IMAGECONSCIOUS INDIAN CLAD IN TRADITIONAL GARB WHO DIRECTS ADS FOR SPOTS FILMS SERVICES INTERNATIONAL IN LONDON HE GAINED INTERNATIONAL NOTICE FOR A LEVIS JEANS AD PRODUCED LAST YEAR CALLED THE SWIMMER A 1950SSTYLE SCENE OF A YOUNG MAN JUMPING FROM ONE SUBURBAN SWIMMING POOL TO ANOTHER TO THE SOUND OF DINAH WASHINGTON'S SONG MAD ABOUT THE BOY THIS YEAR TARSEM JUST TARSEM NO LAST NAME COLLECTED TWO GOLD LIONS FOR A CLASSY SMIRNOFF VODKA AD THE FILM CALLED MESSAGE IN A BOTTLE SHOWS A SHIP'S WAITER NEGOTIATING HIS WAY THROUGH A GROUP OF PARTYING PASSENGERS WHILE BALANCING A SMIRNOFF BOTTLE ON A TRAY VIEWED THROUGH THE BOTTLE THE SCENE IS TRANSFORMED INTO SURREALISTIC IMAGES A WOMAN'S HAIR TURNS INTO AN OCTOPUS'S TENTACLES AND A CHAIN AROUND ANOTHER WOMAN'S NECK GAINS LIFE AS A SNAKE THE SPOT WAS ALSO THE JOURNALISTS' PICK OF THE FESTIVAL JOE PYTKA THE AMERICAN PRINCIPAL OF PYTKA PRODUCTIONS WAS THE WINNER OF THIS YEAR'S MUCHCOVETED PALME D'OR FOR HAVING PRODUCED THE 10 BEST PRODUCTIONS OF THE YEAR HIS FILM ADS ARE COSTLY BUT THEY ARE OFTEN DEEMED SAPPY FOR HALLMARK CARDS HE DIRECTED A SPOT DEPICTING A FAMILY GATHERING AT HANUKKAH WITH GRANDPA TELLING THE STORY OF THE FRIEND HE MET ON THE SHIP TO AMERICA THEN HIS GRANDSON HANDS HIM A CARD FROM HIS LONGLOST SHIPMATE A HALLMARK NATURALLY BRITAIN REMAINED THE LEADER IN SUBTLE AND HUMOROUS ADVERTISING IN A BEER COMMERCIAL BY BARTLE BOGLE HEGARTY FOR WHITBREAD'S BODDINGTONS BRAND A BEAUTIFUL WOMAN USES THE BEER'S HEAD AS A FACE CREAM HER LOVER IS ENCHANTED BY HER SOFT AND SWEETSMELLING NEW SKIN SPAIN OPTED FOR MORE TRADITIONAL APPROACHES ONE WINNER FOR GALERIAS DEPARTMENT STORES ENTERED BY CASADEVALL PEDRENO & PRG BARCELONA WAS PANNED BY CRITICS AS SEXIST IT SHOWED A SERIES OF MEN TRYING TO LURE THEIR WIVES BACK HOME MAINLY BECAUSE THEY MISSED THE WIVES' COOKING ONE JURY MEMBER ADMITTED THAT HE WANTED TO STOP THE AD FROM WINNING BUT HIS FELLOWS PRAISED ITS ORIGINALITY THE MOST WELCOME SURPRISE AT THE FESTIVAL WAS NORWAY WHOSE ALTERNATELY FUNNY AND SILENT ADS POCKETED EIGHT AWARDS FOR SENIOR CITIZEN DISCOUNT FLIGHTS THE LEO BURNETT OFFICE IN OSLO CREATED NAKED LUNCH A HUSBAND REVVED UP FOR A ROMANTIC EVENING WITH HIS WIFE RETURNS HOME UNDRESSES PUTS A ROSE IN HIS TEETH AND BURSTS INTO THE LIVING ROOM THERE HE FINDS NOT ONLY HIS WIFE BUT ALSO HIS INLAWS THE CAPTION WARNING DURING THE SUMMER WE FLY YOUR INLAWS FOR HALFPRICE SANDOZ PHARMACEUTICALS CORP A UNIT OF SANDOZ LTD OF SWITZERLAND AGREED TO PAY 800000 AS PART OF A SETTLEMENT OF CHARGES FROM 34 STATE ATTORNEYS GENERAL THAT IT USED MISLEADING ADVERTISING FOR NEW AND IMPROVED TRIAMINIC COUGH SYRUP ADS FOR THE NEW TRIAMINIC CREATED BY BLOOM FCA OF NEW YORK BOASTED ABOUT THE PRODUCT'S EASY AND NEW CONVENIENT DOSING BUT THE NEW FORMULA WAS MERELY DILUTED WITH WATER TO MAKE IT HALF AS STRONG AS THE OLD ONE THE ATTORNEYS GENERAL CHARGED THE DOSAGE FOR THE NEW TRIAMINIC WAS TWO TEASPOONS THEY SAID WHEREAS THE DOSAGE FOR THE OLD ONE WAS ONE TEASPOON THE CHARGES ALSO CITED THE CLAIM 1 PEDIATRICIAN RECOMMENDED AS UNSUBSTANTIATED SANDOZ WHICH DIDN'T ADMIT TO WRONGDOING IN SETTLING THE CHARGES SAYS IT REDUCED THE CONCENTRATION OF THE COUGH SYRUP BECAUSE ITS RESEARCH SHOWED THAT IT IMPROVED THE FLAVOR AND MADE CHILDREN MORE LIKELY TO TAKE IT RIVAL SYRUPS HAVE LOWER CONCENTRATIONS OF ACTIVE INGREDIENTS THE COMPANY ASSERTED AND MANY COST MORE PER DOSE THAN TRIAMINIC WE FEEL STRONGLY THAT THE POSITION TAKEN BY THE ATTORNEYS GENERAL IS UNWARRANTED THE COMPANY SAID IN A STATEMENT UNDER THE SETTLEMENT TERMS SANDOZ MUST INCLUDE ON TRIAMINIC PACKAGES BOTTLES DISPLAYS AND ADS A NOTE MARKED IMPORTANT THAT ALERTS CONSUMERS TO THE NEW DOSAGE WHICH CAN'T BE CHARACTERIZED AS EASY OR MORE CONVENIENT TO ADMINISTER SANDOZ MUST ALSO SEND A REFUND OR COUPON FOR A FREE BOTTLE OF TRIAMINIC TO CUSTOMERS WHO COMPLAIN ABOUT THE PRODUCT ACCOUNT ZALE CORP DALLAS PARENT OF THE ZALES AND GORDON'S JEWELRY STORE CHAINS TAPPED BLOOM FCA AND LEVENSON & HILL TO HANDLE ITS ADVERTISING ACCOUNT WITH ESTIMATED BILLINGS OF 10 MILLION BLOOM WILL CREATE ADVERTISING LEVENSON & HILL IS HANDLING THE MEDIA AND PROMOTION PORTIONS OF THE ACCOUNT RICHARDS GROUP OF DALLAS WAS THE PREVIOUS AGENCY FOR THE ZALE DIVISION 9307020041 930702 CLINTON GETS SPENDING BILL WITH ECHO OF STIMULUS BUT PLENTY FOR PENTAGON BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONGRESS SENT THE WHITE HOUSE A 35 BILLION SPENDING BILL THAT SALVAGES REMNANTS OF PRESIDENT CLINTON'S ECONOMIC STIMULUS PLAN BUT PROVES TO BE FAR MORE GENEROUS TO THE PENTAGON THAN TO DOMESTIC PROGRAMS HOUSE APPROVAL CAME ON A 280138 ROLL CALL AND THE SENATE WITHOUT A FORMAL VOTE SENT IT ON TO THE PRESIDENT MORE THAN 70 OF THE NEW SPENDING IS OFFSET BY CUTS FROM PRIOR APPROPRIATIONS AND IN STARK CONTRAST WITH THE PRESIDENT'S PROGRAM THE FINAL PRODUCT ENDS UP TRIMMING DISCRETIONARY OUTLAYS FOR DOMESTIC PROGRAMS IN THE FISCAL YEAR ENDING OCT 1 NEW FUNDING FOR THE PRESIDENT'S ONCEAMBITIOUS SUMMER JOBS INITIATIVE OF ABOUT 1 BILLION IS HELD TO 220 MILLION WITH 50 MILLION OF IT GOING TO AN EXPANDED TRAINING PROGRAM TARGETED AT YOUNG MEN AND WOMEN OF UP TO 30 YEARS OF AGE ANOTHER 300 MILLION IS EQUALLY DIVIDED BETWEEN SMALLBUSINESS LOAN SUBSIDIES AND JUSTICE DEPARTMENT GRANTS INTENDED TO HELP URBAN AREAS HIRE EXTRA POLICE AMTRAK AND RURAL WATER PROGRAMS EACH WOULD RECEIVE LESSER APPROPRIATIONS AND BY THE ADMINISTRATION'S RECKONING THE BILL CONTAINS ABOUT 1 BILLION OF THE PRESIDENT'S STIMULUS PACKAGE WHICH WAS VALUED AT 16 BILLION TO 19 BILLION OR MORE EVEN THIS ESTIMATE DEPENDS ON COUNTING 341 MILLION FOR GRANTS TO LOWINCOME COLLEGE STUDENTS AMONG THE MORE PUBLIC WORKSSTYLE INVESTMENTS WITHOUT THIS MONEY THE TRUE STIMULUS TOTAL IS CLOSER TO 660 MILLION BY CONTRAST THE BILL'S SHORTTERM IMPACT IS A BURST OF DIRECT SPENDING IN PENTAGON ACCOUNTS ALBEIT TO PAY FOR COSTS ALREADY BUILT UP BY US MISSIONS TO SOMALIA AND THE MIDEAST OFFSETTING CUTS WILL COVER ABOUT THREEQUARTERS OF THE NEW APPROPRIATIONS OVER TIME BUT THESE SAVINGS OFTEN COME FROM SLOWERSPENDING PROCUREMENT ACCOUNTS US AIRCRAFT MANUFACTURERS WILL LOSE 2492 MILLION IN POTENTIAL ORDERS FOR MORE THAN THREE DOZEN PLANES FOR NATIONAL GUARD AND RESERVE UNITS AND AN ESTIMATED 272 MILLION WOULD COME FROM RESCINDING APPROPRIATIONS FOR CLASSIFIED AND INTELLIGENCE PROGRAMS IN THIS ATMOSPHERE OF SPENDING CUTS THE FEDERAL BUREAU OF INVESTIGATION WON 32 MILLION FOR IMPROVE ITS CAPABILITY TO RESPOND TO TERRORISM AND EXTREMIST ACTS IN THE US AND THE FINAL MEASURE PRESERVES 115 MILLION SOUGHT BY THE FEDERAL COMMUNICATIONS COMMISSION TO BEGIN IMPLEMENTING THE REQUIREMENTS OF THE CABLETV REGULATION BILL ENACTED LAST YEAR 9307020040 930702 ABREAST OF THE MARKET INDUSTRIALS END DOWN 554 POINTS ON STILL MORE POOR ECONOMIC DATA BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FRESH EVIDENCE THAT THE ECONOMY IS STRUGGLING SENT STOCK PRICES MOSTLY LOWER THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT ADDED TO THIS WEEK'S STRING OF DOWNBEAT ECONOMIC NEWS REPORTING THAT ITS INDEX OF BUSINESS ACTIVITY HAD FALLEN TO ITS LOWEST LEVEL IN 18 MONTHS THE NEWS DISCLOSED SHORTLY AFTER THE MARKET OPENED CUT OFF SOME EARLY STRENGTH AND LEFT STOCKS LIMPING THROUGH THE BALANCE OF THE DAY THE DOW JONES INDUSTRIAL AVERAGE FINISHED WITH A LOSS OF 554 TO 351054 BROADER INDEXES ALSO WERE LOWER BUT ADVANCING BIG BOARD ISSUES NEVER SURRENDERED THEIR LEAD OVER DECLINERS ENDING THE DAY WITH A 1185 TO 825 ADVANTAGE THE ECONOMIC UNCERTAINTIES WHICH STARTED WITH POOR READINGS ON HOME SALES CONSUMER CONFIDENCE AND THE GOVERNMENT'S INDEX OF LEADING INDICTORS AREN'T OVER YET AND THAT KEPT STOCK PRICES IN A TIGHT RANGE YESTERDAY ANALYSTS SAID EVEN AFTER THE PURCHASING MANAGERS DATA MANY INVESTORS WITHHELD JUDGMENT ON THE MARKET AND THE ECONOMY UNTIL THE LABOR DEPARTMENT'S SCHEDULED RELEASE OF JUNE EMPLOYMENT DATA THIS MORNING ANALYSTS PREDICT A 130000 JUMP IN NONFARM PAYROLLS AFTER AN INCREASE OF 209000 IN MAY BUT THEY EXPECT THE UNEMPLOYMENT RATE TO INCH UP TO 70 FROM 69 THE PRIOR MONTH THE 120000TO150000 RANGE IS PIVOTAL FOR THE PAYROLLS REPORT SAID WILLIAM DODGE MARKET STRATEGIST AT DEAN WITTER REYNOLDS MUCH ABOVE THAT COULD BE TROUBLE HE SAID MR DODGE SAID MANY BOND INVESTORS ARE EXPECTING A POOR EMPLOYMENT NUMBER AND IF THEY ARE DISAPPOINTED BOND PRICES COULD TUMBLE AND STOCKS WOULD LIKELY FOLLOW A MARSHALL ACUFF PORTFOLIO STRATEGIST AT SMITH BARNEY HARRIS UPHAM & CO SAID THE ECONOMIC UNCERTAINTIES AMONG INVESTORS ARE BEING MAGNIFIED BY THE APPROACH OF SECONDQUARTER EARNINGS REPORTING SEASON HE PREDICTED LITTLE SIGNIFICANT MARKET DIRECTION UNTIL PEOPLE GET A READ ON THE STRENGTH OF CORPORATE PROFITS MEANWHILE THERE WAS A SOLID READING YESTERDAY ON ONE OF THE OTHER MOST IMPORTANT FACTORS FOR STOCK INVESTORS S&P SAID US COMPANIES ARE ON TRACK TO MAKE THIS YEAR THE STRONGEST SINCE 1989 IN TERMS OF THE NUMBER OF DIVIDEND INCREASES YEARTODATE S&P SAID 784 COMPANIES RAISED THEIR PAYOUTS COMPARED WITH 679 IN THE YEARAGO PERIOD S&P PREDICTED THAT 1500 CORPORATIONS WILL INCREASE DIVIDENDS THIS YEAR WHICH WOULD BE THE MOST SINCE 1656 WERE RAISED IN 1989 THERE WERE 1333 DIVIDEND BOOSTS IN 1992 DRUG STOCKS WERE AMONG THE WEAKEST GROUPS FOR A SECOND STRAIGHT DAY PFIZER FELL 2 TO 65 MERCK & CO LOST 1/2 TO 35 WARNERLAMBERT SLID 1 1/8 TO 69 3/4 AND BRISTOLMYERS SQUIBB DROPPED 3/4 TO 57 GOLDMAN SACHS REMOVED PFIZER AND MERCK FROM ITS RECOMMENDED LIST PRECIOUSMETALS STOCKS SURGED ALONG WITH THE PRICE OF GOLD NEWMONT MINING JUMPED 2 TO 54 1/2 PEGASUS GOLD CLIMBED 1 3/8 TO 24 7/8 AND HOMESTAKE MINING ADVANCED 1 TO 20 1/8 ECHO BAY MINES ROSE 7/8 TO 13 1/8 ON THE AMERICAN STOCK EXCHANGE MAYBELLINE JUMPED 1 5/8 TO 19 5/8 AFTER MERRILL LYNCH RAISED ITS INTERMEDIATETERM RATING ON THE MEMPHIS TENN COSMETICS COMPANY'S STOCK TO BUY FROM ABOVE AVERAGE THE OTHER SEVEN STOCKS ON THE LEHMAN BROTHERS LIST ARE AMERADA HESS CITICORP CLARK EQUIPMENT GENERAL MOTORS QUANTUM HEALTH SOCIETY CORP AND TELEFONOS DE MEXICO THE LIST HAS DONE WELL OVER THE YEARS ACCORDING TO LEHMAN BROTHERS IT HAS BEATEN THE S&P 500 INDEX IN 30 OF THE PAST 44 YEARS THE FIRM CALCULATES THAT THE 10 STOCKS ON THE JUNE 1992 LIST HAVE RISEN AN AVERAGE OF 354 COMPARED WITH 104 FOR THE S&P 500 IMCO RECYCLING LOST 1 3/8 TO 12 3/8 AFTER RAYMOND JAMES & ASSOCIATES REDUCED ITS RATING ON SHARES OF THE IRVING TEXAS BEVERAGE CAN RECYCLING COMPANY TO HOLD FROM BUY SALANT ADDED 1 TO 10 3/4 THE COMPANY SAID CONTINENTAL BANK WITHDRAW ITS OPPOSITION TO THE NEW YORK APPAREL CONCERN'S BANKRUPTCYREORGANIZATION PLAN THE COMPANY SAID IT NOW HAS THE SUPPORT OF ALL OF ITS MAJOR CREDITORS NATIONAL CITY ROSE 1 5/8 TO 52 AFTER THE CLEVELAND BANK HOLDING COMPANY DECLARED A 2FOR1 STOCK SPLIT AND INCREASED ITS QUARTERLY DIVIDEND THE SPLIT WILL BE PAID TO STOCK OF RECORD JULY 12 A 27CENT DIVIDEND WILL BE PAID AFTER THE SPLIT UP FROM A SPLITADJUSTED PAYOUT OF 26 CENTS NOW THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 163 TO 43587 THERE WERE 298 ADVANCERS AND 272 DECLINERS 9307020039 930702 ST PAUL COS AGREES TO PAY 420 MILLION FOR UNIT OF KEMPER ST PAUL MINN ST PAUL COS AGREED TO PAY ABOUT 420 MILLION TO ACQUIRE KEMPER CORP'S ECONOMY FIRE & CASUALTY CO UNIT ECONOMY IS ONE OF TWO PROFITABLE REGIONAL PROPERTYCASUALTY COMPANIES KEMPER PUT ON THE BLOCK LATE LAST YEAR AS PART OF THE LONG GROVE ILL COMPANY'S STREAMLINING EFFORTS ST PAUL SAID IT WILL PAY ABOUT TWOTHIRDS OF THE PURCHASE PRICE IN CASH AND ONETHIRD IN ASSETS DISTRIBUTED FROM ECONOMY'S INVESTMENT PORTFOLIO ECONOMY HAS ASSETS OF 733 MILLION ITS NET PREMIUMS WRITTEN LAST YEAR TOTALED 401 MILLION SHAREHOLDER EQUITY AT MARCH 31 WAS 3055 MILLION AND NET INCOME FOR 1992 WAS 20 MILLION A KEMPER SPOKESWOMAN SAID ST PAUL SAID ECONOMY FITS WELL WITH ITS STRATEGIC DIRECTION DAVID R MATHIS KEMPER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE AGREEMENT ALLOWS KEMPER TO FOCUS ON CORE FINANCIAL SERVICES AND LIFE BUSINESSES THE SALE IS EXPECTED TO CLOSE BY THE END OF THE THIRD QUARTER ST PAUL SAID IT WILL FINANCE THE PURCHASE WITH INTERNAL FUNDS AND REPLACE ECONOMY'S DISTRIBUTED ASSETS WITH AN APPROPRIATE AMOUNT OF ASSETS KEMPER SAID ITS EXPECTED GAIN FROM THE SALE WOULD BE LESS THAN THE SIMPLE DIFFERENCE BETWEEN THE PURCHASE PRICE AND ECONOMY'S SHAREHOLDER EQUITY IN TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ST PAUL CLOSED AT 80625 UP 125 KEMPER CLOSED AT 35625 UP 125 CENTS 9307020038 930702 DOW JONES WORLD STOCK INDEX REPORT GLOBAL MONEY MANAGERS TAKE THE LONG VIEW BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE US LOOKS PRETTY GOOD JAPAN HOPEFUL EMERGING MARKETS IN SOUTHEAST ASIA AND SOME IN LATIN AMERICA VERY ALLURING AND EUROPE WORRISOME THAT'S ABOUT IT FOR A CONSENSUS AMONG GLOBAL MONEY MANAGERS ABOUT THE OUTLOOK FOR WORLD STOCK MARKETS DURING THE NEXT SIX MONTHS TO A YEAR BEYOND THAT THEY DISAGREE SHARPLY ANNE M TATLOCK EXECUTIVE VICE PRESIDENT IN CHARGE OF INSTITUTIONAL GLOBAL EQUITY INVESTMENT AT FIDUCIARY TRUST CO INTERNATIONAL IN NEW YORK AND JOHN HICKLING A PORTFOLIO MANAGER AT FIDELITY INVESTMENTS IN BOSTON BOTH LIKE JAPANESE AND EUROPEAN FINANCIAL STOCKS BUT MIKE YOUNG DIRECTOR OF EUROPEAN INVESTMENT STRATEGY AT MERRILL LYNCH INTERNATIONAL IN LONDON SAYS WE'RE SUGGESTING SELLING THE FINANCIALS MS TATLOCK BELIEVES JAPAN'S RECESSION HAS BOTTOMED OUT AND SHE IS HIGH ON SOME BIG JAPANESE ELECTRICAL COMPANIES LIKE ALPS ELECTRIC CO AND AMADA CO BUT MR HICKLING CONTENDS THAT THERE ISN'T GOING TO BE SECONDHALF RECOVERY IN JAPAN AS SOME ARGUE AND EARNINGS ARE GOING TO DISAPPOINT THUS HE IS LARGELY AVOIDING AUTOS SOME ELECTRICALS RETAILERS PAPERS CHEMICALS AND OTHER CYCLICALS DESPITE SOME QUALMS ABOUT THE FALLOUT IF CHINA TIGHTENS MONETARY POLICY TO BATTLE INFLATION MS TATLOCK IS PRETTY ENTHUSIASTIC ABOUT HONG KONG BUT ROBERT PENNELLS MANAGING DIRECTOR AND HEAD OF EQUITIES AT LEHMAN GLOBAL ASSET MANAGEMENT LTD IN LONDON BELIEVES THAT MARKET IS OVERPRICED ON A PRICETOCASHFLOW BASIS AND IS REDUCING HIS HONG KONG HOLDINGS SIEGFRIED HOECKER CHIEF INVESTMENT STRATEGIST AT DEUTSCHE ASSET MANAGEMENT GMBH IN FRANKFURT LIKES CANADA AND AUSTRALIA IN ADDITION TO PROSPECTS FOR BETTER GROWTH IN BOTH COUNTRIES AND A STRONGER US ECONOMY'S GIVING CANADIAN EXPORTS A BOOST HE POINTS TO AN EXPECTED FIRMING OF COMMODITY PRICES FOR SIMILAR REASONS MR YOUNG OF MERRILL IS MOVING CLIENTS INTO EUROPEAN OIL COMPANIES AND RTZ CORP A BRITISH METALS AND MINING COMPANY NOTING THE LARGE CUTBACKS IN EXTRICATIVE INDUSTRIES HE SAYS IT DOESN'T TAKE MUCH OF AN INCREASE IN DEMAND TO GIVE YOU A VERY NICE UPWARD MOVE IN PRICES BUT FIDELITY'S MR HICKLING DOESN'T BUY THAT LOGIC HE SEES A LOT OF PRESSURE ON RESOURCE PRICES PARTLY BECAUSE OF CONTINUING DECLINING OR LOWGROWTH ECONOMIES AROUND THE WORLD AND PARTLY BECAUSE OF INCREASES IN SUPPLY IN PLACES LIKE CHINA RUSSIA SOUTH AMERICA AND SOUTHEAST ASIA ONE THING MANY MANAGERS AGREE ON IS THAT THE DOLLAR WILL STRENGTHEN BY AS MUCH AS 10 AGAINST EUROPEAN CURRENCIES DURING THE NEXT EIGHT TO 12 MONTHS BECAUSE A STRONGER DOLLAR COULD SEVERELY CUT INTO OR EVEN WIPE OUT GAINS FROM FOREIGN STOCKS THEY ARE HEDGING CURRENCY RISK FOR THEIR US CLIENTS LOOKING AT THE WORLD FROM A TOPDOWN PERSPECTIVE WHICH ASSESSES THE GENERAL ENVIRONMENT FOR STOCK MARKETS RATHER THAN ANALYZING INDIVIDUAL COMPANIES MANAGERS TEND TO SEPARATE INTO THE PEPPY THE PESSIMISTS AND THE INDIFFERENT MORE OPTIMISTIC THAN MOST MR PENNELLS OF LEHMAN SAYS WE HAVE THE BASIC BUILDING BLOCKS FOR FURTHER PROGRESS IN EQUITY MARKETS FALLING INTEREST RATES IN EUROPE FISCAL STIMULUS IN JAPAN AND CONTINUING ECONOMIC GROWTH IN THE US TO THAT HE ADDS THE PROSPECT THAT JAPAN WILL FURTHER CUT ITS OFFICIAL DISCOUNT RATE HE SEES SOME STOCK MARKETS RISING AND THEN PAUSING AS JAPAN'S DID RECENTLY WHILE OTHERS CATCH UP AS FRANCE HAS BEEN DOING BUT THE KEY IS NOT TO GET CAUGHT UP BUYING INTO A MARKET AFTER IT HAS HAD A BIG MOVE SAYS MR PENNELLS LESS CHEERFUL MR HOECKER OF DEUTSCHE ASSET MANAGEMENT SEES EUROPE'S RECESSION LASTING AT LEAST UNTIL YEAR END AND HE QUESTIONS THE STRENGTH OF ANY RECOVERY IN 1994 WHAT STOCK MARKETS DON'T LIKE IS A RECESSIONARY SCENARIO AND BEING UNSURE WHEN YOU WILL REACH THE TURN HE SAYS IN THIS SITUATION A REDUCTION OF INTEREST RATES ISN'T NECESSARILY HELPFUL TO STOCK MARKETS THUS HE SAYS WE AREN'T MAKING BIG BETS ON INDIVIDUAL STOCK MARKETS BUT THE GROUP'S PORTFOLIOS ARE MOSTLY WEIGHTED TO REFLECT STANDARD BENCHMARKS BUT MR HOECKER SAYS WE ARE ABOUT TO CONSIDER AN INCREASE IN OUR US POSITIONS THAT'S BECAUSE HE IS EXPECTING A STRONGER DOLLAR FLAT US INTEREST RATES AND FURTHER EVIDENCE OF A US RECOVERY OVERALL FIDELITY'S MR HICKLING SEES THE NEXT SIX MONTHS AS A PRETTY BENIGN ENVIRONMENT FOR EQUITIES TWO OR THREE MONTHS AGO HE FEARED THE US STOCK MARKET MIGHT CRACK UNDER RENEWED INFLATION PRESSURES AND TAKE OTHERS DOWN WITH IT BUT NOW HE BELIEVES THAT ALL THE DEFLATIONARY FORCES AROUND THE WORLD WILL KEEP A LID ON INFLATION IN THE US AND NOBODY IS WORRIED ABOUT INFLATION PICKING UP IN JAPAN AND EUROPE UNABLE TO FALL WILDLY IN LOVE WITH ANY SINGLE MARKET MANY MONEY MANAGERS ARE PLAYING THEMES INSTEAD MR HICKLING LIKES FINANCIAL COMPANIES AND OTHERS THAT STAND TO BENEFIT FROM LOWER INTEREST RATES IN EUROPE AND JAPAN HE ALSO LIKES SELECTED CYCLICAL COMPANIES WHOSE DRASTIC COSTCUTTING AND DOWNSIZING WILL PAY OFF WHEN BUSINESS PICKS UP YESTERDAY IN A LONGAWAITED MOVE GERMANY AND SEVERAL OTHER EUROPEAN COUNTRIES CUT KEY INTEREST RATES HIS JAPANESE PORTFOLIO INCLUDES SANWA BANK LTD MITSUBISHI BANK LTD NOMURA SECURITIES CO KOKUSAI SECURITIES CO TOKIO MARINE & FIRE INSURANCE CO AND TWO UTILITIES TOKYO ELECTRIC POWER CO AND TOHOKU ELECTRIC POWER CO HE ALSO OWNS MITSUBISHI HEAVY INDUSTRIES LTD AND TOBU RAILWAY CO BOTH HAVE A LOT OF DEBT AND WILL BENEFIT FROM LOWER RATES AND ARE ALSO BIG CAPITALIZATION LIQUIDITY STOCKS MEANING THEY COULD APPEAL TO MANY INVESTORS SAYS MR HICKLING IN EUROPE HE LIKES BRITAIN'S BARCLAYS BANK PLC AND TWO SWISS FINANCIAL INSTITUTIONS CS HOLDING AND SWISS BANK CORP MS TATLOCK OF FIDUCIARY TRUST ALSO LIKES FINANCIAL STOCKS HER LOGIC IS STRAIGHTFORWARD FALLING INTEREST RATES IN THE INDUSTRIAL WORLD AND THE NEED FOR STRONG INSTITUTIONS TO HELP BUILD DEVELOPING COUNTRIES HER CHOICES IN THE FORMER INCLUDE GERMANY'S DEUTSCHE BANK AG JAPAN'S ASAHI BANK LTD AND CREDIT LOCAL DE FRANCE IN SMALLER MARKETS MS TATLOCK OWNS MEXICO'S BANCOMER SA MALAYSIA'S MALAYAN BANKING BHD AND TWO SINGAPORE BANKS OVERSEA CHINESE BANKING CORP AND DEVELOPMENT BANK OF SINGAPORE SHE ALSO LIKES HSBC HOLDINGS PLC WHICH TRADES IN LONDON BUT IS THE PARENT OF HONGKONG & SHANGHAI BANKING CORP AMONG THE COSTCUTTERS MR HICKLING OWNS BRITISH STEEL PLC AND VICKERS PLC WHICH MAKES ARMORED TANKS ROLLSROYCE CARS AND HIGHTECH MEDICAL EQUIPMENT JAPANESE ELECTRICALCOMPONENT MAKER MITSUMI ELECTRIC CO WHICH HAS MUCH OF ITS PRODUCTION AT CHEAPER OFFSHORE SITES IS HIGH ON MS TATLOCK'S RESTRUCTURED LIST TWO COMPANIES MR YOUNG OF MERRILL LYNCH SEES BENEFITING FROM THE RESTRUCTURING PROCESS IN EUROPE ARE BRITAIN'S SIEBE PLC IN THE AREA OF PROCESS CONTROLS AND VALEO A FRENCH CARPARTS MAKER STILL MS TATLOCK WARNS THAT WHILE INVESTORS MAY BE ATTRACTED TO COMPANIES THAT HAVE SEVERELY CUT COSTS RESTRUCTURING IS A TWOEDGED SWORD IN A VERY POSITIVE SENSE IT HELPS IMPROVE CORPORATE BOTTOM LINES SHE SAYS BUT IT ALSO CONSTRAINS JOB GROWTH INCREASES UNEMPLOYMENT AND THAT DAMAGES CONSUMER CONFIDENCE AND CONSUMER SPENDING STILL DRIVES TWOTHIRDS OF ALL THE DEVELOPED ECONOMIES REGARDLESS MR YOUNG DOESN'T AGREE WITH THE FALLING INTEREST RATE THESIS AT LEAST NOT IN EUROPE CALLING EUROPEAN INTEREST RATES A LOSELOSE SITUATION HE THINKS INVESTORS WILL BE DISAPPOINTED IF CENTRAL BANKS THERE DON'T CUT THEM BECAUSE THEY ARE ALREADY BETTING ON LOWER RATES WHAT'S MORE HE FORECASTS INCREASED GOVERNMENT SPENDING TO DEAL WITH GROWING EUROPEAN UNEMPLOYMENT POLITICIANS ARE GOING TO REALIZE THAT IF THEY DON'T DO SOMETHING TO CREATE JOBS THEY'LL BE OUT OF JOBS THEMSELVES HE SAYS HIS ADVICE GET OUT OF FINANCIALS AND INTO STOCKS THAT WILL BENEFIT FROM THE INCREASED GOVERNMENT SPENDING HE FAVORS THREE BIG CEMENT COMPANIES SWITZERLAND'S HOLDERBANK FINANCIERE GLARUS AG BELGIUM'S CIMENTERIES CBR CEMENTBEDRIJVEN AND FRANCE'S LAFARGECOPPEE SA MR YOUNG ALSO LIKES OIL COMPANIES WHICH TEND TO HAVE HIGHER YIELDS THAN OTHER EUROPEAN COMPANIES AND TO OUTPERFORM WHEN THE DOLLAR IS RISING THREE HE SUGGESTS BUYING ARE HOLLAND'S ROYAL DUTCH PETROLEUM CO AND FRANCE'S SOCIETE NATIONALE ELF AQUITAINE AND TOTAL MS TATLOCK OF FIDUCIARY TRUST STILL FINDS COMMUNICATIONS A VERY COMPELLING THEME IT WORKS IN THE EMERGING MARKETS IT WORKS IN THE DEVELOPED MARKETS SHE SAYS HER PICKS RANGE FROM AMERICAN TELEPHONE & TELEGRAPH CO AND MCI COMMUNICATIONS CORP IN THE US AND ITALY'S STETSOCIETA FINANZIARIA TELEFONICA SPA TO TELECOMMUNICATIONS COMPANIES IN DEVELOPING COUNTRIES SUCH AS TELEFONOS DE MEXICO SA BRAZIL'S TELEBRAS COMPANIA DE TELEFONOS DE CHILE SA AND TELEKOM MALAYSIA BHD IN FACT MS TATLOCK AND OTHERS SAY THE BEST PERFORMING MARKETS COULD BE THE EMERGING STOCK MARKETS OF SOUTHEAST ASIA AND LATIN AMERICA WHICH THEY SEE BEING SUPPORTED BY RECEDING INFLATION STRONG GROWTH AND IN MANY CASES GOOD VALUES MR HOECKER AGREES BUT HE ADDS THESE MARKETS AREN'T THAT BIG ALL TOGETHER SO WE CAN'T PUT BIG MONEY INTO THEM 9307020037 930702 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 1/2 HIGH 3 1/8 LOW 3 1/4 NEAR CLOSING BID 3 3/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 313 30 TO 59 DAYS 315 60 TO 96 DAYS 320 97 TO 123 DAYS 322 124 TO 209 DAYS 338 210 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 321 30 DAYS 322 60 DAYS 324 90 DAYS CERTIFICATES OF DEPOSIT 262 ONE MONTH 266 TWO MONTHS 273 THREE MONTHS 290 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 310 ONE MONTH 315 THREE MONTHS 333 SIX MONTHS BANKERS ACCEPTANCES 304 30 DAYS 306 60 DAYS 309 90 DAYS 313 120 DAYS 316 150 DAYS 324 180 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 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 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 MONDAY JUNE 28 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 305 13 WEEKS 314 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 698 60 DAYS 706 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 694 60 DAYS 704 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 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 9307020036 930702 TECHNOLOGY US VACCINE AUTHORITY IS URGED FOR OVERSEAS AID WASHINGTON AN INSTITUTE OF MEDICINE COMMITTEE CALLED FOR THE CREATION OF A NATIONAL VACCINE AUTHORITY TO AID THE DEVELOPMENT AND PROCUREMENT OF VACCINES FOR USE IN DEVELOPING COUNTRIES PRIVATE COMPANIES ARE RELUCTANT TO INVEST IN COSTLY AND DIFFICULT RESEARCHANDDEVELOPMENT VENTURES WHEN THE LIKELIHOOD OF RETURNS ON INVESTMENTS VARY FROM UNPREDICTABLE TO SLIM TO NONE SAID COMMITTEE CHAIRMAN JAY SANFORD THE INSTITUTE IS PART OF THE NATIONAL ACADEMY OF SCIENCES A NATIONAL VACCINE AUTHORITY COULD ENCOURAGE PRIVATESECTOR PRODUCTION OF VACCINES NEEDED ABROAD BY DISTRIBUTING GRANTS PROVIDING ACCESS TO A PILOT PRODUCTION FACILITY AND GUARANTEEING THE PURCHASE OF THE DEVELOPED VACCINES THE COMMITTEE REPORT SAID THE COMMITTEE ESTIMATED THE STARTUP COSTS OF THE AGENCY AT BETWEEN 30 MILLION AND 75 MILLION BECAUSE MANY SMALL BIOTECHNOLOGY COMPANIES CURRENTLY AREN'T ABLE TO COMPETE AGAINST A FEW LARGE COMPANIES NVA CONTRACTS COULD POTENTIALLY ASSIST THE DEVELOPMENT OF A SUNRISE INDUSTRY SAID COMMITTEE MEMBER DAVID MOWERY ASSOCIATE PROFESSOR OF BUSINESS AND PUBLIC POLICY AT THE UNIVERSITY OF CALIFORNIA BERKELEY 9307020035 930702 CLINTON HEALTH PLAN WOULD SPUR SAVINGS CUTTING INEFFICIENCY IS AIMED AT MOLLIFYING EMPLOYERS BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NO ONE DOUBTS THAT THE AMBITIOUS CLINTON HEALTHCARE PLAN WILL CARRY A HEFTY PRICE TAG ONE CONSOLATION IS THAT IN DITCHING THE CURRENT SYSTEM THERE WOULD BE SAVINGS AS MUCH AS 50 BILLION A YEAR FROM ADMINISTRATIVE SAVINGS ALONE ACCORDING TO WHITE HOUSE ESTIMATES THOSE SAVINGS CAN BE FOUND IN THE SWAMP OF WASTE THAT CURRENTLY VEXES PATIENTS AND DOCTORS ALIKE AND IF THE WASTE REALLY CAN BE SQUEEZED OUT IT WILL CUT THE MONEY THAT EMPLOYERS AND OTHERS WOULD HAVE TO ANTE UP TO PAY FOR THE NEW SYSTEM IRA MAGAZINER A SENIOR ARCHITECT OF THE HEALTHCARE OVERHAUL LIKES TO TELL A STORY ABOUT HOW THE RED TAPE MADE SOMEBODY TURN BLUE AN ELDERLY WOMAN MR MAGAZINER ONCE MET WAS A HOSPICE PATIENT WHOSE FAMILY WANTED HER TO BE AT HOME BUT THERE WAS ONE CATCH SHE REQUIRED OXYGEN FROM TIME TO TIME UNDER FEDERAL MEDICARE GUIDELINES SHE COULD HAVE OXYGEN WHENEVER SHE NEEDED IT AS LONG AS SHE WAS IN THE HOSPITAL THE ONLY WAY MEDICARE WOULD PAY FOR OXYGEN AT HOME WAS IF THE OXYGEN CONTENT IN HER BLOODSTREAM HAD FALLEN BELOW A CERTAIN LEVEL SO EACH WEEK THE PATIENT WAS BROUGHT INTO THE HOSPITAL FOR TESTING WHEN SHE DIDN'T QUALIFY SHE WOULD BE FORCED TO STAY THERE WHERE IT COST 900 A DAY TO TREAT HER COMPARED WITH JUST 250 AT HOME MEDICARE OFFICIALS WERE UNRESPONSIVE TO PLEAS FOR A MORE SENSIBLE APPROACH SO A NURSE CAME UP WITH AN IDEA SHE WOULD HAVE THE WOMAN TRUDGE UP AND DOWN THE HALL TO GET HER OUT OF BREATH MR MAGAZINER RECALLS THAT WAY SHE WOULD FLUNK THE TEST AND COULD GO BACK HOME WITH HER OXYGEN A PRIMARY GOAL OF THE CLINTON HEALTHCARE PROPOSAL WILL BE TO END THIS SORT OF CRAZINESS AS MR MAGAZINER CALLS IT PERSUADING PEOPLE THAT THESE SAVINGS CAN BE REALIZED WILL BE CRUCIAL TO ALLAYING EMPLOYERS' FEARS THAT THE CLINTON PROGRAM WHICH WOULD GUARANTEE BASIC HEALTH COVERAGE TO ALL AMERICANS FOR THE FIRST TIME WOULD BE A MASSIVE NEW COST BURDEN ON THEM BUT IT'S EASIER TO IDENTIFY WASTE THAN GET RID OF IT AND ALTHOUGH FEW EXPERTS DOUBT THAT THERE'S A TREMENDOUS AMOUNT OF INEFFICIENCY THROUGH THE CURRENT SYSTEM SOME QUESTION WHETHER THE CLINTON APPROACH IS THE RIGHT WAY TO GET AT IT NONETHELESS CLINTON OFFICIALS ARE CONFIDENT THAT SAVINGS SHOULD RESULT NATURALLY FROM GOING TO A SYSTEM THAT FEATURES A FEDERALLY GUARANTEED PACKAGE OF HEALTH BENEFITS OFFERED THROUGH GIANT REGIONAL INSURANCE PURCHASING POOLS BY HAVING A STANDARD BENEFITS PACKAGE DOCTORS' OFFICES AND HOSPITALS SHOULD NO LONGER FACE A DAILY PAPER CHASE TO DETERMINE WHAT INDIVIDUAL PATIENTS' POLICIES COVER AND BY JOINING THE POOLS SMALL BUSINESSES IN PARTICULAR SHOULD BE ABLE TO CUT THEIR OVERHEAD EXPENSES FOR ADMINISTERING HEALTH COVERAGE FOR THEIR WORKERS THEY'LL GET THE SAME ECONOMIES OF SCALE THAT LARGE EMPLOYERS HAVE SAYS ROBERT CIRKIEL SENIOR VICE PRESIDENT AT HAY/HUGGINS CO A BENEFITS CONSULTING FIRM OVERALL THERE WILL BE AS MANY AS 40 STEPS PROPOSED TO ACHIEVE ADMINISTRATIVE SIMPLIFICATION AMONG THEM SWITCH TO A SINGLE REIMBURSEMENT FORM FOR INSURANCE CLAIMS CLINTON AIDES SAY THIS WOULD SPARE BILLING DEPARTMENTS COUNTLESS HOURS GRAPPLING WITH THE 1500 TO 2000 DIFFERENT CLAIMS FORMS THAT NOW EXIST GIVE ALL PEOPLE A STANDARD HEALTHSYSTEM IDENTIFICATION NUMBER THAT CAN BE USED BY INSURERS HOSPITALS DOCTORS AND OTHER MEDICALSERVICE PROVIDERS SCALE BACK ON THE FEDERAL OVERSIGHT OF THE NATION'S CLINICAL LABORATORIES THE PLAN WOULD WAIVE CERTAIN FILING FEES AND PARE THE PAPERWORK FOR 75000 SMALL LABS ANOTHER 10000 LABS WOULD ENJOY SIMPLIFIED STANDARDS OFFICIALS SAY STREAMLINE MEDICARE AND MEDICAID RULES TO GIVE DOCTORS AND NURSES MORE CONTROL OVER DECISIONS THE EFFECT SHOULD BE TO ELIMINATE THE KIND OF MICROMANAGEMENT THAT MAKES PEOPLE PACE FOR THEIR OXYGEN IT SOURS THE WHOLE DOCTORPATIENT RELATIONSHIP WHEN NEITHER CAN UNDERSTAND OR DEAL WITH THE HASSLES INFLICTED BY THE SYSTEM SAYS JAMES TODD EXECUTIVE VICE PRESIDENT OF THE AMERICAN MEDICAL ASSOCIATION THE MAGNITUDE OF SAVINGS FROM HASSLE RELIEF HE ADDS HAS TO BE AWESOME BUT SOME PEOPLE SEE NEW TANGLES OF RED TAPE IN THE CLINTON PLAN A CORNERSTONE OF THE PRESIDENT'S PLAN WILL BE MANAGED COMPETITION A MIXTURE OF GOVERNMENT REGULATION AND FREEMARKET FORCES IT IS UNDER SUCH A SYSTEM THAT THE HUGE INSURANCE PURCHASING POOLS WOULD BE SET UP GIANT BODIES THAT SOME FEAR WILL LEAD TO WHOLE NEW LAYERS OF BUREAUCRACY THERE IS A STRONG GOVERNMENT PRESENCE IN THIS WHOLE THING SAYS PAUL COOPER OF PRUDENTIAL INSURANCE CO OF AMERICA THERE IS ALSO EVIDENCE THAT HEALTH MAINTENANCE ORGANIZATIONS THE PREPAID MANAGED CARE PLANS THAT EMBODY MANY OF THE PRINCIPLES THE CLINTON SYSTEM IS SURE TO PROMOTE HAVE LARGE OVERHEAD LEVELS SIMILAR TO THOSE OF TRADITIONAL INDEMNITY INSURERS THE CLINTON PLAN WOULD INCREASE RELIANCE ON MANAGED CARE BUT IT WOULD BE OUTRAGEOUS TO CLAIM ADMINISTRATIVE SAVINGS FROM THAT ASSERTS DAVID HIMMELSTEIN A CAMBRIDGE MASS PHYSICIAN AND LEADING ADVOCATE OF A CANADIANSTYLE SYSTEM OF GOVERNMENTFINANCED HEALTH INSURANCE AND SEPARATING THE NEEDLESS PAPERWORK FROM THE NEEDED ISN'T ALWAYS SO EASY WHAT'S ONE PERSON'S WASTE IS ANOTHER PERSON'S VITAL ORGAN SAYS BRANDEIS UNIVERSITY'S STUART ALTMAN WHO WAS A CLINTON HEALTH ADVISER DURING THE TRANSITION DESPITE SUCH CONCERNS THE PROMISE OF LESS RED TAPE SEEMS A WINNER POLITICALLY IN A RECENT SPEECH TO THE AMA HILLARY RODHAM CLINTON DENOUNCED THE MOUNTAINS OF FORMS MOUNTAINS OF RULES MOUNTAINS OF HOURS SPENT ON ADMINISTRATIVE MINUTIAE INSTEAD OF CARING FOR THE SICK THE FIRST LADY WAS SHOWERED WITH APPLAUSE 9307020033 930702 VCR MAKERS PLAN TO SET SPECIFICATIONS FOR ADVANCED UNITS SPECIAL TO THE WALL STREET JOURNAL TOKYO TEN JAPANESE AND EUROPEAN MANUFACTURERS OF VIDEOCASSETTE RECORDERS SAID THEY PLAN TO AGREE ON A COMMON SET OF SPECIFICATIONS FOR NEXTGENERATION HIGHDEFINITION DIGITAL VCRS THE MOVE FOLLOWS EARLIER AGREEMENTS BETWEEN THE COMPANIES LED BY MATSUSHITA ELECTRIC INDUSTRIAL CO AND SONY CORP OF JAPAN AS WELL AS THOMSON SA'S THOMSON CONSUMER ELECTRONICS AND PHILIPS ELECTRONICS NV OF EUROPE REGARDING BASIC DIGITAL VCR TECHNOLOGY OTHER PARTICIPANTS ARE HITACHI LTD MITSUBISHI ELECTRIC CORP SANYO ELECTRIC CO SHARP CORP TOSHIBA CORP AND VICTOR CO OF JAPAN THE 10 COMPANIES SAID THEY WILL FORM A TECHNICAL CONFERENCE IN SEPTEMBER TO DECIDE ON HIGHDEFINITION SPECIFICATIONS FOR THE UNITS THE CONFERENCE THEY SAID WILL BE OPEN TO INDUSTRY PARTICIPATION AND OFFER INFORMATION ON BASIC DIGITAL VCR STANDARDS THE VCR MAKERS SAID THEY WILL ADDRESS INTELLECTUAL PROPERTY ISSUES WHICH IN THE PAST HAVE BEEN STICKING POINTS OF TALKS THE WORLDWIDE MARKET FOR HIGHDEFINITION DIGITAL VCRS SHOULD REACH 700 BILLION YEN 653 BILLION IN THE YEAR 2000 ACCORDING TO A FORECAST BY THE ELECTRONICS INDUSTRY ASSOCIATION OF JAPAN THE 10 MAKERS SAID THE CONFERENCE WOULD SUBMIT ITS VCR SPECIFICATIONS TO THE INTERNATIONAL ELECTROTECHNICAL COMMISSION WITH THE AIM OF ESTABLISHING A WORLD STANDARD THEY SAID EACH COMPANY WILL MAKE ITS OWN DECISION ON WHETHER TO ADOPT THE FORMAT THE COMPANIES SAID THE HIGHDEFINITION DIGITAL VCRS WILL ALSO BE ABLE TO DIGITALLY RECORD CURRENT BROADCASTING FORMATS INCLUDING THE DOMINANT NTSC OF THE US AND JAPAN AND PAL OF EUROPE 9307020032 930702 WHO'S NEWS FOGLIANO IS APPOINTED BY MAYTAG TO HEAD AN APPLIANCE GROUP NEWTON IOWA MAYTAG CORP TAPPED JOSEPH F FOGLIANO THE FORMER HEAD OF THOMSON CONSUMER ELECTRONICS INC TO SERVE AS A CORPORATE EXECUTIVE VICE PRESIDENT AND PRESIDENT OF THE COMPANY'S NORTH AMERICAN APPLIANCE GROUP MR FOGLIANO 53 YEARS OLD JOINS THE APPLIANCE MANUFACTURER AFTER SPENDING ALMOST HIS ENTIRE CAREER IN THE CONSUMERELECTRONICS FIELD THIS YEAR HE RESIGNED AFTER MORE THAN FIVE YEARS AS PRESIDENT AND CHIEF EXECUTIVE OF INDIANAPOLISBASED THOMSON CONSUMER ELECTRONICS A 3 BILLIONAYEAR UNIT OF FRANCE'S THOMSON SA HE HELD A NUMBER OF EXECUTIVE POSTS WITH GENERAL ELECTRIC CO AND WAS AN OFFICIAL WITH THE RCA/GE OPERATIONS THE FRENCH CONCERN ACQUIRED FROM GE IN 1988 HE ASSUMED THE TOP JOBS AT THE UNIT FOLLOWING THAT PURCHASE AT MAYTAG MR FOGLIANO WILL BE RESPONSIBILE FOR ALL OF THE US MAJORAPPLIANCE OPERATIONS AND ALSO WILL OVERSEE THE CORPORATE PURCHASING FUNCTION THE APPLIANCE GROUP POST HE IS ASSUMING JULY 15 HAS BEEN VACANT SINCE 1990 HE WILL REPORT TO LEONARD A HADLEY MAYTAG'S CHAIRMAN AND CHIEF EXECUTIVE WHO WAS THE LAST HOLDER OF MR FOGLIANO'S NEW TITLES MAYTAG LIKE ITS COMPETITORS HAS SEEN SALES AND PRICING PRESSURED BY CONSUMER CAUTION ABOUT BUYING BIGTICKET ITEMS IN THE SOFT ECONOMIC CLIMATE INDUSTRY COMPETITION REMAINS HARSH AND THERE HAVE BEEN COSTS ASSOCIATED WITH SHRINKING SOME US OPERATIONS CONSOLIDATING CERTAIN SALES AND DISTRIBUTIONS SYSTEMS AND STARTING UP FACILITIES NEVERTHELESS MUCH OF INVESTORS' RECENT DISAPPOINTMENT WITH MAYTAG HAS BEEN FOCUSED ON THE LONGRUNNING DIFFICULTIES AT THE COMPANY'S HOOVER DIVISION PARTICULARLY ITS HOOVER EUROPE BRANCH MR FOGLIANO WON'T BE INVOLVED IN OVERSIGHT OF HOOVER 9307020031 930702 AFTER TOUTING THE TYRANNOSAURUS THEY'RE LOOKING AT THE THESAURUS BY JACK REJTMAN STAFF REPORTER OF THE WALL STREET JOURNAL IN A NEW TWIST ON SURVIVAL OF THE FITTEST A DINOSAUR ATTRACTION AT A SMALL PENNSYLVANIA ZOO FACES EXTINCTION IN A TRADEMARK DISPUTE WITH A BIGTIME MOVIE UNIVERSAL STUDIOS HAS ALL BUT THREATENED TO SUE FOR TRADEMARK INFRINGEMENT UNLESS THE ERIE ZOO CHANGES THE NAME OF ITS NEW DINOSAUR DISPLAY JURASSIC JUNGLE THE NAME IS SIMILAR ALL TOO SIMILAR IN THE STUDIO'S VIEW TO JURASSIC PARK UNIVERSAL'S BLOCKBUSTER SUMMER FILM JURASSIC PARK THE MOVIE HAS TAKEN IN 183 MILLION AT THEATERS AS OF YESTERDAY AND PROMISES SALES OF PREHISTORIC PROPORTIONS FOR DINOSAUREMBLAZONED LUNCH BUCKETS REPTILLIAN TSHIRTS AND DOZENS OF TYRANNOSAUR TRINKETS JURASSIC JUNGLE THE DISPLAY ISN'T EXACTLY A THREAT TO THE MOVIE AND ITS SPINOFFS THE ENTIRE ZOO OPERATES ON A 15 MILLION ANNUAL BUDGET THE JURASSITTRACTION HAS DRAWN ONLY 35000 VISITORS AND IT FEATURES MAYBE A DOZEN FAKE DINOSAURS SMALLER THAN LIFESIZE AT THAT THE ERIE ZOO HAS BEEN CHARGING 4 A HEAD FOR A TOUR PAST ITS PREHISTORIC PREDATORS REAPING EXTRA CASH BY SELLING JURASSIC JUNGLE TSHIRTS RIGHT NEXT TO THE TOY DINOSAURS BEARING THE AUTHENTIC JURASSIC PARK LOGO THAT IT APPEARS IS WHAT GOT THE ERIE ZOO INTO TROUBLE IT HAS BECOME ONE SMALL TARGET IN UNIVERSAL'S GLOBAL TURF BATTLE TO STOP COPYCATS FROM CAPITALIZING ON JURASSIC PARK WITHOUT PAYING FOR THE PRIVILEGE THE ERIE ZOO HAD HOPED TO CLEAR A 25000 PROFIT ON THE GIMMICK USING THE PROCEEDS TO HELP PAY FOR A NEW ROOF ON ITS 30YEAROLD ICE RINK THOSE PLANS ALAS ARE ON ICE YET IT ISN'T CLEAR WHETHER LEGALLY THE ZOO HAS TO RENAME JURASSIC JUNGLE INASMUCH AS THE WORD JURASSIC WAS IN USE LONG LONG BEFORE THE BOOK AND FILM WERE HATCHED BUT SUE PROGOFF A TRADEMARK LAWYER AT FISH & NEAVE IN NEW YORK WHO ISN'T INVOLVED IN THIS DINOSPAT SAYS LEGALITY MAY NOT ENTER INTO IT FREQUENTLY A SMALL COMPANY WILL BACK DOWN IF A LARGER COMPANY AGGRESSIVELY OBJECTS OR THREATENS WITH A LAWSUIT AND AT ERIE ZOO DIRECTOR JIM RHEA DOES SAY THE ZOO PLANS TO BOW TO UNIVERSAL'S COMPLAINT BY CHANGING THE ATTRACTION'S NAME MAYBE MESOZOIC MONSTERS PERHAPS PREHISTORIC PLAZA OR BRONTOSAURUS BAYOU MR RHEA WILL SETTLE FOR THE SIMPLER DINOSAUR JUNGLE AT UNIVERSAL A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC A SPOKESWOMAN DECLINES TO SAY WHETHER THAT WILL BE ACCEPTABLE 9307020030 930702 TELECOMMUNICATIONS AT&T MIRRORS MCI'S SERVICE FOR COLLECT CALLS BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN TELEPHONE & TELEGRAPH CO APPARENTLY BELIEVES RIVAL MCI COMMUNICATIONS CORP'S 1800COLLECT SERVICE IS A GOOD IDEA AFTER ALL WITH MCI'S NEW DISCOUNT COLLECTCALLING SERVICE ATTRACTING A SLEW OF NEW CUSTOMERS AT&T YESTERDAY BEGAN PUSHING A RIVAL SERVICE CALLED 1800OPERATOR AT&T WILL CUT ITS REGULAR COLLECTCALLING RATES IN THE 10 TO 15 RANGE DEPENDING ON WHEN THE CALL IS MADE AND THE CALL'S DURATION A SPOKESMAN SAYS THEY WILL EXACTLY MATCH 1800COLLECT HE VOWS THAT'S A BIG STRATEGIC SHIFT FROM A MONTH AGO WHEN AT&T KNOCKED THE NEW MCI SERVICE AT&T HAD SAID CONSUMERS WOULD RATHER SPEND MORE ON A CALL FOR THE CONVENIENCE OF SIMPLY DIALING ZERO PLUS THE NUMBER WE STILL THINK ZEROPLUS IS A SUPERIOR WAY OF MAKING A CALL AT&T'S SPOKESMAN SAYS AT&T'S ZEROPLUS DIALING SCHEME IS UBIQUITOUS THAT'S BECAUSE MOST OF THE PAYPHONES IN THE US ARE CONNECTED TO AT&T'S SERVICE WHEN A LONGDISTANCE CALL IS MADE MCI INTRODUCED ITS SERVICE AS A BREAKOUT STRATEGY TO GET CONSUMERS TO USE ITS SERVICE REGARDLESS OF THE PHONE THEY WERE USING AT STAKE IS A MARKET IN WHICH PEOPLE ARE MAKING 12 BILLION LONGDISTANCE COLLECT CALLS A YEAR GENERATING APPROXIMATELY 3 BILLION IN REVENUE MOSTRECENT FIGURES SHOW ABOUT 75 OF THIS BUSINESS IS AT&T'S MCI HOLDS ABOUT 5 TO 7 SPRINT CORP AND SMALLER CARRIERS HOLD THE REST THEN MCI LAUNCHED 1800COLLECT IN LATE MAY SINCE THAT TIME MILLIONS OF PEOPLE HAVE PHONED COLLECT CALLS ON IT SAYS ANGELA DUNLAP MCI'S SENIOR MARKETING VICE PRESIDENT AT&T'S SPOKESMAN SAYS THAT MAY BE THEIR FIGURE IT'S NOT OURS WHAT'S AT&T'S TALLY WE WON'T GIVE THAT OUT HE SAYS THERE ARE DIFFERENCES BETWEEN THE TWO CARRIERS' OFFERINGS WITH MCI'S SERVICE AN OPERATOR COMES ON THE LINE AND PUTS THE CALLER ON HOLD THE MCI OPERATOR THEN CHECKS TO SEE WHETHER THE CALLED PARTY WILL ACCEPT THE CHARGES BEFORE LETTING THE CALL PASS WITH AT&T'S SERVICE CALLERS FOR THE FIRST MONTH WILL DEAL WITH A HUMAN OPERATOR AFTER THAT CALLERS WILL TALK TO A COMPUTERIZED OPERATOR WHEN THEY DIAL THE NUMBER THE AT&T SYSTEM WILL PROMPT THE CALLER TO PUNCH IN THE NUMBER IT THEN WILL ASK THE CALLED PARTY FOR APPROVAL BEFORE LETTING THE CALL PASS THE FINAL R IN AT&T'S NUMBER IS SUPERFLUOUS THIS LEADS MCI'S MS DUNLAP TO WONDER WHETHER AT&T SHOULDN'T CALL ITS NEW SERVICE 1800ADEVICE HOW CAN THEY CALL IT 1800OPERATOR IF YOU DON'T GET AN OPERATOR SHE ASKS YOU CALL AND YOU GET A DEVICE COUNTERS AT&T'S SPOKESMAN WE SEE THAT AS A LEAPFROG YOU'LL HAVE A STREAMLINED SYSTEM WITH VOICE RECOGNITION AND YOU'RE NOT IN LIMBO WAITING ON HOLD WONDERING WHAT'S GOING ON BEFORE THE CALL IS CONNECTED CONSUMERS USING THE OLD ZEROPLUS METHOD AND LIVE OPERATORS WILL PAY AT&T'S REGULAR RATES AT&T'S SPOKESMAN ACKNOWLEDGES THAT AT&T'S NEW SERVICE MAY HURT ITS REVENUE FURTHER SINCE CONSUMERS WILL LIKELY WANT TO DIAL THE EXTRA DIGITS TO SAVE MONEY BUT HE SAYS WE'D RATHER HAVE PEOPLE USING 1800OPERATOR THAN 1800COLLECT WE WANT TO MAINTAIN OUR MARKET SHARE IN ADDITION TO ITS NEW COLLECTCALL SERVICE AT&T YESTERDAY ANNOUNCED A PROMOTION AT 10 US AIRPORTS THE COMPANY WILL TRIM 30 OFF CHARGES ON CALLS FROM PUBLIC PAYPHONES THAT ARE CONNECTED TO LONGDISTANCE CARRIERS OTHER THAN AT&T AT&T SAID IT ALSO WOULD GIVE CUSTOMERS IN ITS SIMPLE SAVINGS RESIDENTIAL DISCOUNT PROGRAM A 15 REDUCTION IN RATES ON SUCH THINGS AS COLLECT CALLS PERSONTOPERSON CALLS AND CALLINGCARD CALLS AND AS A 4TH OF JULY PROMOTION AT&T SAID IT WOULD OFFER COLLECT CALLS FOR 10 CENTS PER MINUTE FROM ANY PHONE USING EITHER TRADITIONAL ZEROPLUS CALLING OR THE NEW 1800OPERATOR SERVICE 9307020029 930702 ECONOMY CLINTON AIDES GRAPPLE WITH DEFINITION OF A US COMPANY IN GLOBAL ECONOMY BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN LABOR SECRETARY ROBERT REICH WAS AN ACADEMIC HE POSED A SIMPLESOUNDING BUT FUNDAMENTAL QUESTION TO US CAPITALISM WHO IS US IN AN AGE OF GLOBAL BUSINESS HE ASKED DO USOWNED COMPANIES STILL REPRESENT THE US NOW CLINTON ECONOMIC OFFICIALS ARE PREPARING PAPERS ON THE ISSUE AND BEGINNING TO DEBATE IT AT THE NATIONAL ECONOMIC COUNCIL THE OUTCOME OF THEIR DISCUSSIONS WILL DEEPLY INFLUENCE TRADE AND TECHNOLOGY POLICIES RANGING FROM WHO BUILDS NEXTGENERATION TELEVISION SETS TO US NEGOTIATIONS WITH JAPAN YOU NEED A SET OF GUIDELINES SAYS COMMERCE SECRETARY RON BROWN WHO CALLS HIMSELF AN AMBASSADOR FOR AMERICAN INDUSTRY WHAT'S AN AMERICAN COMPANY WHOSE INTERESTS DO I ADVOCATE HE ASKS AMERICAN WORKERS SHOULD COME FIRST SAYS MR REICH WHO ARGUES THAT AMERICA'S STANDARD OF LIVING DEPENDS PRIMARILY ON IMPROVING WORKER SKILLS AMERICAN COMPANIES ARE THOSE THAT PROVIDE HIGHSKILL JOBS FOR AMERICAN WORKERS IN AMERICAREGARDLESS OF WHETHER THOSE COMPANIES ARE OWNED BY AMERICAN GERMAN OR JAPANESE SHAREHOLDERS THE FLAG THAT FLIES OVER A FACTORY OR CORPORATE HEADQUARTERS IS LESS AND LESS RELEVANT HE SAYS NOT AT ALL RESPONDS CHIEF WHITE HOUSE ECONOMIST LAURA TYSON WHO SAYS THE NATIONALITY OF A COMPANY STILL LARGELY DETERMINES WHERE IT WILL LOCATE THE BULK OF ITS SALES PRODUCTION AND RESEARCH AND DEVELOPMENT IN AN ARTICLE CALLED THEY ARE NOT US WRITTEN BEFORE EITHER SHE OR MR REICH JOINED THE GOVERNMENT SHE ARGUED THAT THE ECONOMIC FATE OF NATIONS IS STILL TIED CLOSELY TO THE SUCCESS OF THEIR DOMESTICALLYBASED CORPORATIONS MR REICH'S VIEWPOINT FIRST PROPOUNDED IN A HARVARD BUSINESS REVIEW ARTICLE IN 1990 IS THE BESTKNOWN AND MOST CONTROVERSIAL JAPANESE NEGOTIATORS HAVE EVEN CITED HIS THEORIES IN TALKS WITH THE US OVER OPENING THE JAPANESE GOVERNMENTPROCUREMENT MARKET TO FOREIGN COMPUTERS THE JAPANESE ARGUE THAT THEY SHOULD COUNT AS AMERICAN ANY COMPUTER EXPORTED FROM THE US THEREBY OPENING THEIR MARKET FOR NEC CORP COMPUTERS SHIPPED FROM THE US BUT NOT IBM COMPUTERS MADE IN JAPAN A US NEGOTIATOR COMPLAINS THE JAPANESE WERE ABLE TO USE MR REICH'S VIEWS TO FURTHER THEIR OWN GOALS THE JAPANESE PROPOSAL IS CONSISTENT WITH MR REICH'S THINKING THE NEGOTIATOR SAYS BUT IS AT CROSSPURPOSES WITH THE US POSITION THAT THE JAPANESE GOVERNMENT SHOULD BUY MORE COMPUTERS FROM USOWNED VENDORS BATTLES OVER TRADE THEORY WOULD BE OUTSIDE THE PURVIEW OF MOST LABOR SECRETARIES BUT MR REICH A FORMER HARVARD POLITICAL ECONOMIST IS ONE OF THE ADMINISTRATION'S BOLDEST THINKERS AND A LONGTIME FRIEND OF THE PRESIDENT IN MARCH HE SENT A FOURPAGE MEMO DETAILING HIS IDEAS TO MR CLINTON A MONTH AGO HE LAID OUT HIS THOUGHTS AT A GATHERING OF CABINET OFFICIALS IN MR REICH'S VIEW US TRADE OFFICIALS SHOULD ASSIGN TOP PRIORITY TO USOWNED COMPANIES THAT EXPORT FROM THE US BUT IN A CONTROVERSIAL DEPARTURE FROM PAST PRACTICE HE WOULD RANK FOREIGNOWNED COMPANIES THAT EXPORT FROM THE US IN SECOND PLACE LEAVING USOWNED FOREIGN SUBSIDIARIES BRINGING UP THE REAR UNDER A REICH TRADE POLICY THE US GOVERNMENT WOULD PROBABLY FOCUS MORE ON SONY CORP'S PROBLEMS SELLING MOVIES AND RECORDS IN FRANCE PRODUCED BY SONY'S US SUBSIDIARIES THAN IT WOULD ON TEXAS INSTRUMENTS INC'S PROBLEMS SELLING SEMICONDUCTORS FROM ITS FACTORY IN JAPAN AS A TEST CASE THE LABOR SECRETARY POINTED TO HIGHDEFINITION TV THE NAME GIVEN TO THE NEXT GENERATION OF TV SETS WHICH PROMISE TO DELIVER MOVIEQUALITY IMAGES IN HIS MEMO TO THE PRESIDENT MR REICH SAID THAT A CONSORTIUM INCLUDING DUTCHOWNED PHILIPS ELECTRONICS NV AND FRENCHOWNED THOMSON SA PLEDGED TO PRODUCE THE NEW SETS IN THE US WHILE A CONSORTIUM OF USOWNED AMERICAN TELEPHONE & TELEGRAPH CORP AND ZENITH ELECTRONICS CORP DIDN'T ZENITH DOES MUCH OF ITS ASSEMBLY IN MEXICO AT THE TIME THE FEDERAL COMMUNICATIONS COMMISSION WAS DECIDING WHICH CONSORTIUM'S TECHNOLOGY SHOULD BECOME THE STANDARD FOR HIGHDEFINITION TV A DECISION THAT COULD MEAN TENS OF MILLIONS OF DOLLARS ANNUALLY IN ROYALTIES SHOULDN'T THE FCC CONSIDER WHICH STANDARD IS LIKELY TO GENERATE THE GREATEST AMOUNT OF HIGHWAGE PRODUCTION IN THE UNITED STATES MR REICH ASKED THE PRESIDENTEVEN THOUGH THAT CRITERION WOULD HAVE FAVORED FOREIGNOWNED CORPORATIONS IN THE END THE CONSORTIA AGREED TO POOL THEIR TECHNOLOGY AND ROYALTIES MR REICH ALSO CRITICIZES THE BUSH ADMINISTRATION'S EMPHASIS ON HELPING TOYS R US INC SET UP STORES IN JAPAN BECAUSE THE CHAIN STORE GENERALLY SELLS TOYS LARGELY MADE IN SOUTHEAST ASIA NOT IN THE US THE SECRETARY ARGUES THAT THE US SHOULD FOCUS ON INCREASING EXPORTS FROM THE US BUT CLINTON'S JAPAN TEAM SAYS THE REICH APPROACH ISN'T SUFFICIENT AND HAS PATTERNED MUCH OF ITS PROPOSAL ON THE TOYS R US MODEL OF INVESTMENT ABROAD BOWMAN CUTTER DEPUTY DIRECTOR OF THE NATIONAL ECONOMIC COUNCIL SAYS THAT US EXPORTS ARE REGULARLY BLOCKED FROM JAPAN BECAUSE US COMPANIES CAN'T FIND JAPANESE OUTLETS WILLING TO CARRY THEIR PRODUCTS IN OTHER WORDS WHEN DEALING WITH JAPAN A COMPANY'S NATIONALITY MATTERS A LOT MR REICH SAYS THERE ARE EXCEPTIONS TO HIS RANKINGS AND MS TYSON SAYS HER STAFF IS TRYING TO DEVISE MEASUREMENTS THAT WOULD TEST WHETHER US INVESTMENT ABROAD ADDS OR SUBTRACTS FROM EMPLOYMENT BACK HOME A CRUCIAL DETERMINANT OF WHETHER THE REICH RANKINGS MAKE SENSE BUT ONE FIGURE ALREADY STANDS OUT THE COMMERCE DEPARTMENT ESTIMATES THAT 63 OF US EXPORTS COME FROM US MULTINATIONAL COMPANIES THE SAME COMPANIES THAT MR REICH BELIEVES ARE LOSING THEIR NATIONAL IDENTITY 9307020028 930702 WHO'S NEWS COMPAQ PC DIVISION BECOMES TWO SECTIONS WITH SEPARATE CHIEFS HOUSTON COMPAQ COMPUTER CORP DIVIDED ITS PERSONAL COMPUTER DIVISION INTO TWO DIVISIONS AND NAMED EXECUTIVES TO HEAD EACH THE PERSONAL COMPUTER DIVISION HAD BEEN HEADED BY H DOUGLAS JOHNS WHO RESIGNED IN MARCH TO RUN HIS OWN BUSINESS JOHN T ROSE 47 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND GENERAL MANAGER OF THE NEWLY CREATED DESKTOP PERSONAL COMPUTER DIVISION A FORMER VICE PRESIDENT IN CHARGE OF PERSONAL COMPUTERS AT DIGITAL EQUIPMENT CORP MR ROSE WAS MOST RECENTLY AN INVESTOR MANAGER AND DIRECTOR AT SEVERAL SOFTWARE STARTUP CONCERNS JIM HARZOG 46 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND GENERAL MANAGER OF THE NEW PORTABLE PERSONAL COMPUTER DIVISION MR HARZOG HAD BEEN VICE PRESIDENT ENGINEERING OF COMPAQ'S PERSONAL COMPUTER DIVISION COMPAQ ALSO SAID THAT GREG PETSCH 42 YEARS OLD A SENIOR VICE PRESIDENT CORPORATE OPERATIONS WOULD MAINTAIN WORLDWIDE RESPONSIBILITY FOR MANUFACTURING AND PURCHASING BUT WOULD NOW REPORT TO ECKHARD PFEIFFER PRESIDENT AND CHIEF EXECUTIVE OFFICER COMPAQ NAMED ROBERT W STEARNS 43 YEARS OLD A FORMER CONSULTANT WITH MCKINSEY & CO TO THE NEWLY CREATED POST OF VICE PRESIDENT CORPORATE DEVELOPMENT AND TOM BUNCH 46 YEARS OLD WAS NAMED TO THE NEWLYCREATED POSITION OF VICE PRESIDENT COMMUNICATION PRODUCTS MR BUNCH HAD BEEN VICE PRESIDENT AND GENERAL MANAGER ENGINEERING DIVISION FOR TOSHIBA CORP'S COMPUTER SYSTEMS GROUP SEPARATELY DIGITAL EQUIPMENT CORP MAYNARD MASS NAMED BERNHARD AUER 52 YEARS OLD VICE PRESIDENT AND GENERAL MANAGER OF ITS PERSONAL COMPUTER UNIT IN EUROPE HE HAD BEEN MANAGING DIRECTOR OF COMPAQ EUROPE'S GENERAL BUSINESS GROUP 9307020027 930702 ENTERTAINMENT POW GOES POSH AS ARCADES ZAP OLD IMAGE BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO ALTHOUGH IT'S ALMOST MIDNIGHT ON A THURSDAY YOUNG MEN AND WOMEN ARE STILL STREAMING INTO GIGO A NEONLIGHTED FOURSTORY BUILDING IN THE HEART OF ROPPONGI ONE OF TOKYO'S HOTTEST NIGHTLIFE DISTRICTS INSIDE THE YOUNG PEOPLE GATHER IN COUPLES AND SMALL GROUPS BEFORE HUGE VIDEO SCREENS IN ROOMS DECORATED WITH AN ODD MIX OF FAKE ROCK FORMATIONS AND BUSTS OF EGYPTIAN PHARAOHS THE AIR PULSES WITH LOUD MUSIC AND ELECTRONIC NOISES I LIKE IT HERE BECAUSE IT'S SO EXCITING GUSHES WAKAKO ISHIHARA A HOTEL CONCIERGE BUT UNLIKE THE OTHER NIGHT SPOTS IN ROPPONGI GIGO IS NEITHER CLUB NOR DISCO NOR BAR IT'S A VIDEO ARCADE WELCOME TO THE NEW WORLD OF VIDEOGAME PLAYING ONE THAT'S DESTINED FOR ELSEWHERE IN ASIA THE US AND EUROPE NO LONGER CONTENT WITH CATERING PRIMARILY TO HIGHSCHOOL BOYS JAPAN'S VIDEOGAME MAKERS HAVE CLEANED UP WHAT WERE FORMERLY SEEDY YOUTH HANGOUTS AND ADDED NEW ATTRACTIONS TO TRANSFORM ARCADES INTO AMYUUZUMENTO SENTAA AMUSEMENT CENTERS CATERING TO FAMILIES YOUNG WOMEN AND DATING COUPLES AMUSEMENT CENTERS ON THE JAPANESE MODEL HAVEN'T YET CAUGHT ON IN THE WEST ALTHOUGH IN JUNE 1992 JAPAN'S BIGGEST AMUSEMENTCENTER OPERATOR SEGA ENTERPRISES LTD STARTED A SMALLSCALE PILOT PROJECT IN DALLAS CALLED GAME CITY THE COMPANY HOWEVER SAYS GAME CITY WHICH SEGA OPERATES IN THE CLUBHOUSE OF A LOCAL COUNTRY CLUB IS JUST A PRELUDE TO A MUCH BIGGER PROJECT LUXOR A LAS VEGAS ENTERTAINMENT COMPLEX SCHEDULED TO OPEN IN OCTOBER LUXOR IS BEING BUILT BY CIRCUS CIRCUS ENTERPRISES INC AS A HOTELCASINO AND SHOPPING COMPLEX IN WHICH SEGA WILL OPERATE A VIDEOGAME AMUSEMENT CENTER US AND EUROPE LUXOR IS ONE OF 10 AMUSEMENT CENTERS THAT SEGA HAS JUST ANNOUNCED IT WILL OPEN IN THE US AND EUROPE BY THE END OF THE YEAR THE COMPANY HOWEVER ISN'T SAYING HOW MANY CENTERS WILL OPEN ON EACH CONTINENT OR WHERE THE OTHER US CENTERS WILL BE THE INCENTIVE FOR OVERSEAS EXPANSION IS OBVIOUS SINCE THE CENTERS HAVE CAUGHT ON IN A BIG WAY IN JAPAN JAPAN'S LEISURE DEVELOPMENT CENTER ESTIMATES TOTAL 1992 AMUSEMENTCENTER REVENUE AT 487 BILLION YEN 455 BILLION UP 18 FROM 1991 IF OPERATORS HAVE THEIR WAY THE AMUSEMENTCENTER BOOM WON'T END WITH THAT IN FEBRUARY NAMCO LTD OPENED A VIDEOGAME THEME PARK CALLED THE NAMCO WONDER EGG AND PLANS SEVERAL MORE FOR COMING YEARS SEGA MEANWHILE HAS PLANS TO BUILD 25 VIRTUAL REALITY THEME PARKS IN WHICH PEOPLE CAN WANDER ABOUT AND PLAY A VARIETY OF GAMES EQUIPPED WITH HUGE VIDEO SCREENS WRAPAROUND SOUND AND HYDRAULIC SEATS THAT BUCK AND PITCH WITH GAME EXPLOSIONS AND SIMILAR EVENTS THE IDEA BEING TO TRANSPORT THEM INTO THE GAME WORLD THE FIRST SUCH PARK IS SCHEDULED TO OPEN EARLY NEXT YEAR IN OSAKA NOT ALL THAT LONG AGO VIDEO ARCADES LOOKED LIKE A DYING BUSINESS SEVEN YEARS AFTER A 1978 BOOM SPARKED BY TAITO CORP'S SPACE INVADERS PUBLIC INTEREST IN PLAYING ARCADEBASED GAMES HAD WANED CONSIDERABLY ARCADES HAD TAKEN ON A DISREPUTABLE AIR AND CONSUMERS BEGAN TO DESCRIBE THEM WITH THE THREE KS KURAI KITANAI AND KOWAI MEANING DARK DIRTY AND SCARY TOTAL GAMECENTER REVENUE FELL TO 240 BILLION YEN IN 1987 FROM 450 BILLION YEN IN 1978 ACCORDING TO A SEGA MARKET REPORT WHEN THE JAPANESE GOVERNMENT PASSED A 1985 PUBLICMORALS LAW INTENDED TO RESTRICT ARCADE OPERATIONS COMPANIES SUCH AS SEGA TAITO AND NAMCO SWUNG INTO GEAR THE ARCADE OWNERS IMPROVED LIGHTING BOLSTERED THEIR LINEUPS WITH MOCK GAMBLING AND CARNIVALLIKE GAMES OF SKILL AND RELOCATED FROM DINGY URBAN BASEMENTS TO MULTISTORY SUBURBAN BUILDINGS TO ATTRACT FAMILIES AND YOUNG WOMEN TO WHAT HAD TRADITIONALLY BEEN ALLMALE ENCLAVES SIMILARLY AMUSEMENTCENTER OPERATORS EXPANDED INTO OTHER FIELDS TO BROADEN THEIR APPEAL AT GIGO FOR INSTANCE TIRED GAME PLAYERS CAN RELAX WITH A BEER AT THE SPORTS BAR ON THE SECOND FLOOR SING KARAOKE IN ONE OF 15 PRIVATE ROOMS OR VENTURE INTO A MOCK CASINO ON THE FOURTH FLOOR STILL GAMES REMAIN THE CENTRAL ATTRACTION FOR MOST VISITORS YOU CAN HAVE FUN FOR JUST A LITTLE MONEY SAYS HIKARU SHIMIZU A 25YEAROLD BELLBOY ACCOMPANYING MS ISHIHARA MR SHIMIZU HOWEVER CONCEDES THAT HE HAS JUST BLOWN 10000 YEN ABOUT 93 PLAYING R360 A VIRTUALREALITY JETFIGHTER GAME THAT'S A CROSS BETWEEN A VIDEO GAME AND A CARNIVAL RIDE R360'S DOUGHNUTSHAPED COCKPIT SPINS PLAYERS SIDEWAYS AND HEADOVERHEELS AS THEIR FIGHTERS SWOOP AND SOAR EACH GAME COSTS 500 YEN OR ABOUT 470 GAME MAKERS HAVE PULLED OUT ALL THE STOPS TO EXTRACT AS MUCH MONEY AS POSSIBLE FROM THEIR CUSTOMERS ONE TACTIC IS TO HARNESS THE COMPETITIVE INSTINCTS OF THE PLAYERS SUCH GAMES AS VIRTUA RACING A RACING GAME IN WHICH EACH DRIVER'S SEAT BUCKS AND MOVES TO SIMULATE TURNS AND ACCELERATION ARE OFTEN HOOKED UP IN ROWS OF EIGHT SO FRIENDS CAN RACE AGAINST ONE ANOTHER LOSERS OF COURSE OFTEN CHALLENGE WINNERS TO ANOTHER RACE OTHER GAMES FOCUS ON COOPERATION MS ISHIHARA AND MR SHIMIZU FOR INSTANCE ARE SPENDING PART OF THE EVENING PLAYING LUCKY AND WILD A TWOPERSON CARCHASE GAME IN WHICH PLAYERS TAKE ON THE PERSONAE OF TWO US UNDERCOVER COPS ANOTHER TACTIC INVOLVES THE OLDFASHIONED HOOK TAKE FOR INSTANCE TERMINATOR 2 A TWOPERSON SHOOTING ADVENTURE BASED ON THE 1991 HIT MOVIE WHICH ALLOWS PLAYERS TO ADVANCE FURTHER ALONG THE GAME'S STORY LINE BY INSERTING MORE COINS WHEN THEIR CHARACTER DIES INSTEAD OF FORCING THEM TO START OVER SMALL WONDER THAT SEGA SAYS IT EXPECTS TO RECOUP ITS INVESTMENT IN EACH NEW GAME WITHIN A YEAR TO 18 MONTHS 9307020026 930702 TECHNOLOGY INTEL PLANS TO BUILD FACILITY IN CALIFORNIA DRAWN BY INCENTIVES SANTA CLARA CALIF IN A SIGN OF CALIFORNIA'S RESOLVE TO ATTRACT HIGHPAYING JOBS INTEL CORP SAID GOVERNMENT INCENTIVES PERSUADED IT TO BUILD A 35 MILLION RESEARCH FACILITY IN FOLSOM CALIF AND ADD 750 JOBS OVER SEVERAL YEARS THE EXPANSION CONTINUES MODERATE GROWTH IN EMPLOYMENT IN RECENT YEARS BY THE WORLD'S LARGEST MAKER OF SEMICONDUCTOR CHIPS INTEL EMPLOYS 26800 PEOPLE INCLUDING 2500 ENGINEERING MARKETING AND ADMINISTRATIVE PERSONNEL IN FOLSOM THE COMPANY MIGHT WELL HAVE ADDED THE NEW POSITIONS MOSTLY FOR ENGINEERS AT EXISTING OPERATIONS IN ARIZONA OREGON OR NEW MEXICO AN INTEL SPOKESWOMAN INDICATED BUT CALIFORNIA STATE AND LOCAL AUTHORITIES OFFERED 85 MILLION IN DIRECT CONCESSIONS SUCH AS ROAD IMPROVEMENTS AND REDUCED PERMIT FEES AN ADDITIONAL 294 MILLION IN LOCAL INFRASTRUCTURE ALSO WILL BE PROVIDED THE ASSISTANCE PACKAGE SUGGESTS THAT CALIFORNIA IS WORKING TO COMBAT THE IMAGE THAT REGULATION CONGESTION EXPENSIVE HOUSING AND OTHER DRAWBACKS MAKE THE STATE AN INHOSPITABLE PLACE TO DO BUSINESS WE INTEND TO MAKE CALIFORNIA THE MOST COMPETITIVE STATE IN THE NEW GLOBAL COMPETITION FOR JOBS SAID GOV PETE WILSON IN HAILING INTEL'S DECISION CALIFORNIA IS IN A HORSERACE WITH THE SAME THREE STATES AS POTENTIAL SITES FOR INTEL'S NEXT CHIP MANUFACTURING PLANT THE COMPANY WILL ANNOUNCE ITS SITE SELECTION LATER THIS YEAR THE NEW RESEARCH BUILDING WILL OPEN FOR OCCUPANCY IN EARLY 1995 THE COMPANY SAID IT DOESN'T KNOW WHAT PROJECTS THE NEW FOLSOM EMPLOYEES WOULD BE INVOLVED IN CURRENTLY EMPLOYEES THERE ENGINEER AND MARKET FLASH MEMORY CHIPS AND MICROPROCESSORS THAT BOOST THE POWER OF INTEL'S 486 AND PENTIUM CHIPS 9307020025 930702 WHO'S NEWS WR BERKLEY CORP WR BERKLEY CORP GREENWICH CONN JOHN D VOLLARO 48 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SIGNET STAR HOLDINGS INC A REINSURANCE HOLDING COMPANY RECENTLY FORMED BY WR BERKLEY AND GENERAL RE CORP MR VOLLARO HAD BEEN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF BERKLEY WHICH OWNS 60 OF SIGNET STAR ANTHONY J DEL TUFO 49 WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER HE HAD BEEN A PARTNER AT KPMG PEAT MARWICK 9307020024 930702 LETTERS TO THE EDITOR OUR LANDMARK FUNDS PROVE THEIR WORTH WE AGREE WHOLEHEARTEDLY WITH THE CONCLUSIONS THAT THERE IS NO REAL DIFFERENCE IN PERFORMANCE AMONG FUNDS SOLD BY BROKERAGE FIRMS AND THOSE SOLD BY BANKS AND THAT BANK FUNDS HAVE HAD A PERFORMANCE EDGE OVER THE BROKERAGE FUNDS OVER THE PAST FIVE YEARS BANKS VS BROKERS WHO'S GOT THE BEST FUNDS MAY 7 HOWEVER THE STATEMENT YOU MAKE ABOUT THE BANKRUN PERFORMANCE OF OUR LANDMARK FUNDS OVER THE PAST FIVE YEARS IS INCORRECT FOLLOWING A COMMON PRACTICE WHEN WE FIRST BEGAN OFFERING MUTUAL FUNDS SOME OF THEM WERE MANAGED BY OUTSIDE INVESTMENT FIRMS THAT WAS THE CASE WITH THE PREDECESSOR FUNDS TO OUR CURRENT EQUITY AND BALANCED FUNDS HOWEVER IN OCTOBER 1990 DISSATISFIED WITH THE INVESTMENT PERFORMANCE OF THESE EQUITY AND BALANCED FUNDS THE MANAGEMENT OF WHICH WAS BEING PROVIDED BY A LARGE PRESTIGIOUS INDEPENDENT NONBANK INVESTMENT ADVISORY FIRM WE CLOSED THESE ORIGINAL EQUITY AND BALANCED FUNDS THEIR ASSETS WERE TRANSFERRED TO TWO NEWLY CREATED FUNDS THE LANDMARK EQUITY AND LANDMARK BALANCED FUNDS WITH DIFFERENT INVESTMENT OBJECTIVES AND OUR INHOUSE INVESTMENT MANAGEMENT AND STYLE SINCE OCTOBER 1990 WHEN CITIBANK BEGAN MANAGING THESE FUNDS INHOUSE THE PERFORMANCE RESULTS HAVE BEEN EXTREMELY COMPETITIVE OVER A FULL TWOYEAR PERIOD OUR NEW LANDMARK EQUITY FUND RETURNED 1463 ANNUALLY RANKING IT NUMBER FIVE OUT OF 21 BANKMANAGED FUNDS AND OUR NEW LANDMARK BALANCED FUND RETURNED 1296 ANNUALLY RANKING IT NUMBER ONE AMONG THE THREE EXISTING BANKMANAGED BALANCED FUNDS THIS RECORD SUPPORTS THE ARTICLE'S MAIN POINTS BANKMANAGED FUNDS INCLUDING CITIBANK'S ARE EVERY BIT AS COMPETITIVE AS FUNDS MANAGED BY OTHER KINDS OF INSTITUTIONS 9307020023 930702 WHO'S NEWS GM SHUFFLES SEVERAL KEY EXECUTIVES IN NORTH AMERICAN ENGINEERING AREAS BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP SHUFFLED KEY EXECUTIVES IN ITS NORTH AMERICAN ENGINEERING OPERATIONS AND NAMED FIVE NEW CORPORATE VICE PRESIDENTS AS PRESIDENT JOHN F SMITH JR STEPPED UP EFFORTS TO PUT HIS STAMP ON THE COMPANY AMONG SEVERAL MOVES YESTERDAY GM SAID DONALD L RUNKLE 48 YEARS OLD WHO JUST LAST OCTOBER WAS NAMED VICE PRESIDENT IN CHARGE OF GM'S NORTH AMERICAN CENTRAL ENGINEERING AND NEWVEHICLE DEVELOPMENT OPERATIONS WAS MOVED OUT OF THAT KEY SLOT TO BECOME VICE PRESIDENT IN CHARGE OF THE SAGINAW DIVISION A COMPONENTS OPERATION THE SWITCH COMES AFTER SEVERAL MONTHS OF INTERNAL CONFLICT OVER THE ROLE THE CENTRAL ENGINEERING STAFF WILL PLAY AS GM TRIES TO CUT NEWVEHICLE DEVELOPMENT COSTS REPLACING MR RUNKLE AS CORPORATE VICE PRESIDENT IN CHARGE OF CENTRAL ENGINEERING OPERATIONS IS JOHN J WETZEL II 54 FORMERLY HEAD OF ENGINEERING FOR GM'S SATURN CORP SMALLCAR SUBSIDIARY MR WETZEL WILL REPORT TO ARVIN F MUELLER VICE PRESIDENT AND GENERAL MANAGER IN CHARGE OF THE NORTH AMERICAN OPERATIONS TECHNICAL CENTER MR WETZEL WILL NOW TAKE CHARGE OF THE RECENTLY FORMED VEHICLE LAUNCH CENTER A KEY ELEMENT OF MR SMITH'S STRATEGY TO CUT GM'S COSTS THE 600 TO 800 ENGINEERS IN THE LAUNCH CENTER WILL ACT AS GATEKEEPERS FOR ALL NEW GM CAR AND TRUCK PROGRAMS ENFORCING MR SMITH'S DIRECTIVE THAT NEW GM VEHICLES WILL SHARE MANY MORE COMMON PARTS AND FACTORY TOOLS COMPANY OFFICIALS SAY SOME ENGINEERING EXECUTIVES WERE RELUCTANT TO GIVE UP THEIR CONTROL OVER VEHICLE SPECIFICATIONS BUT E MICHAEL MUTCHLER HEAD OF GM'S PASSENGER CAR OPERATIONS SAID IN AN INTERVIEW SEVERAL WEEKS AGO THAT THOSE DISPUTES ARE RESOLVED SEPARATELY GM'S BOARD PROMOTED TO CORPORATE VICE PRESIDENT THE GENERAL MANAGERS OF FOUR LARGE PARTSMAKING DIVISIONS GERALD L ELSON 51 GENERAL MANAGER OF THE INLAND FISHER GUIDE DIVISION GEORGE G JOHNSTON 61 GENERAL MANAGER OF THE DELCO CHASSIS DIVISION RUDOLPH A SCHLAIS JR 52 GENERAL MANAGER OF THE PACKARD ELECTRIC DIVISION AND JAN E TANNEHILL 53 GENERAL MANAGER OF THE AC ROCHESTER DIVISION ALL FOUR EXECUTIVES WILL REPORT TO JT BATTENBERG III VICE PRESIDENT IN CHARGE OF GM'S AUTOMOTIVE COMPONENTS GROUP WORLDWIDE GENERAL MANAGERS OF PARTS DIVISIONS TRADITIONALLY WERE ACCORDED LOWER STATUS IN GM'S HIERARCHY THAN THE VICE PRESIDENTS IN CHARGE OF VEHICLE ASSEMBLY AND MARKETING DIVISIONS THAT'S CHANGING MR SMITH SAID IN A STATEMENT TO REFLECT THE INCREASING IMPORTANCE AND WORLDWIDE SCOPE OF GM'S COMPONENT OPERATIONS EACH OF THE FIVE COMPONENT DIVISIONS NOW HEADED BY A CORPORATE VICE PRESIDENT HAS MORE THAN 20000 EMPLOYEES AND ANNUAL SALES IN EXCESS OF 1 BILLION A GM SPOKESWOMAN SAID YESTERDAY IN OTHER MOVES GM SAID THOMAS G STEPHENS 44 FORMERLY DIRECTOR OF ENGINE ENGINEERING FOR THE GM POWERTRAIN GROUP WAS NAMED TO A NEW POSITION OF GENERAL MANAGER IN CHARGE OF ENGINEERING FOR ALL ENGINE TRANSMISSION AND CASTING OPERATIONS HOMI K PATEL 52 FORMERLY GENERAL MANAGER OF SAGINAW DIVISION WAS NAMED TO A NEW POSITION AS GENERAL MANAGER OF MANUFACTURING OPERATIONS FOR THE GM POWERTRAIN GROUP IN ADDITION TO THE FIVE EXECUTIVES PROMOTED TO CORPORATE VICE PRESIDENT RONALD A ROGERS WAS NAMED VICE PRESIDENT OF ENGINEERING FOR THE SATURN UNIT EFFECTIVE AUG 1 MR ROGERS WILL BE RESPONSIBLE FOR SATURN'S TECHNICAL DEVELOPMENT CENTER WHICH COORDINATES PRODUCT AND MANUFACTURING ENGINEERING OPERATIONS AND IS RESPONSIBLE FOR VEHICLE DESIGN IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE GM SHARES CLOSED AT 44 DOWN 50 CENTS 9307020022 930702 MARKETING & MEDIA CABLE INDUSTRY'S LOBBYIST QUITS TO CAP DIFFICULT YEAR NEW YORK THE TOP LOBBYIST FOR THE CABLE INDUSTRY RESIGNED YESTERDAY FOLLOWING A YEAR OF REGULATORY SETBACKS AND BATTERED PUBLIC RELATIONS JAMES P MOONEY PRESIDENT OF THE NATIONAL CABLE TELEVISION ASSOCIATION TOLD HIS STAFF THAT HE IS STEPPING ASIDE AFTER NINE YEARS IN THE POST IN SOME WAYS MR MOONEY IS A CASUALTY OF AN EXTREMELY STRESSFUL YEAR FOR THE CABLE INDUSTRY IN OCTOBER CONGRESS PASSED THE CABLE ACT OF 1992 OVER A PRESIDENTIAL VETO IMPOSING STRICT NEW REGULATIONS ON THE INDUSTRY THEN IN APRIL THE FEDERAL COMMUNICATIONS COMMISSION ADOPTED RULES ESSENTIALLY IMPOSING AN AVERAGE 10 CUT IN CABLE RATES MR MOONEY WHO WAS PAID ABOUT 500000 ANNUALLY HAD EXTENDED HIS CONTRACT FOR SEVERAL YEARS LAST NOVEMBER BUT MANY IN THE INDUSTRY HAD BEEN EXPECTING HIS DEPARTURE ALTHOUGH FEW BLAMED MR MOONEY PERSONALLY WE ARE IN THE MIDST OF A DAMN HURRICANE SAID RICHARD ROBERTS PRESIDENT OF TELECABLE CORP AND CHAIRMAN OF THE NCTA BOARD THESE RULES ARE SO HARSH THAT SOME COMPANIES IN THIS INDUSTRY WILL PROBABLY NOT SURVIVE IN THEIR CURRENT FORM NCTA EXECUTIVE VICE PRESIDENT DECKER ANSTROM WILL SERVE AS ACTING PRESIDENT UNTIL A SUCCESSOR IS FOUND 9307020021 930702 BUSINESS BRIEF NORTHWEST PILOTS UNION MAKE PROGRESS IN TALKS MACHINISTS ARE SET TO BARGAIN NORTHWEST AIRLINES IS MAKING PROGRESS IN NEGOTIATIONS WITH ITS PILOTS UNION AND PLANS TO MEET TODAY WITH REPRESENTATIVES OF THE MACHINISTS UNION TO TRY TO REWORK THE CONTRACT THAT UNION REJECTED LAST MONTH MEANWHILE THE ST PAUL MINN UNIT OF WINGS HOLDINGS INC ALREADY HAS TAKEN STEPS TO CONSERVE CASH IN CASE IT DECIDES TO FILE FOR PROTECTION UNDER BANKRUPTCY LAWS AN INDIVIDUAL FAMILIAR WITH THE COMPANY'S STRATEGY SAID NORTHWEST HALTED 20 MILLION IN PAYMENTS TO SUPPLIERS AND LENDERS THIS WEEK TAKING ADVANTAGE OF GRACE PERIODS INDIVIDUALS FAMILIAR WITH THE NEGOTIATIONS BETWEEN NORTHWEST AND THE AIR LINE PILOTS ASSOCIATION SAID THE TWO SIDES WERE MAKING HEADWAY IN TALKS ON CONCESSIONS AND THERE WAS SOME HOPE TALKS COULD BE CONCLUDED AS EARLY AS TODAY ONE OF THE BIGGEST ISSUES IS THAT THE AIRLINE IS SAID TO BE HOLDING FIRM IN ASKING PILOTS FOR SAVINGS OF 365 MILLION OVER THREE YEARS THAT IS A CRUCIAL PART OF A TOTAL 886 MILLION IN LABOR SAVINGS THE COMPANY IS PROMISING TO ITS LENDERS IN RETURN FOR PUSHING MUCH OF THE COMPANY'S DEBT INTO 1997 AND BEYOND THE PILOTS HAVE SAID THEY ARE WILLING TO CONTRIBUTE 300 MILLION THE DIFFERENCE COULD BE MADE UP BY CHANGES IN WORK RULES A SPOKESWOMAN FOR THE PILOTS CAUTIONED THAT THE ONLY FIRM AGREEMENT SO FAR WAS THAT BOTH SIDES WOULD TAKE THE WEEKEND OFF AND RESUME NEGOTIATIONS MONDAY IF NECESSARY THE FACT THAT WE'RE STILL TALKING IS A GOOD THING SHE SAID BUT SHE ADDED THE ISSUES ARE BIG ENOUGH THAT IT COULD BLOW UP IN OUR FACES WHILE ANY AGREEMENT WITH THE PILOTS' NEGOTIATORS WOULD HAVE TO BE APPROVED BY THE UNION'S 25 MEMBERMASTER EXECUTIVE COUNCIL OFFICIALS OF THE INTERNATIONAL ASSOCIATION OF MACHINISTS HAVE A BIGGER JOB TRYING TO REPAIR THEIR ABORTED DEAL THEIR MEMBERS HAVE ALREADY REJECTED A PREVIOUS CONCESSIONARY PACT BY A VOTE OF 10425 TO 5990 OFFICIALS FROM THE INTERNATIONAL UNION WERE TO MEET WITH NORTHWEST OFFICIALS TODAY TO TRY TO REVISE THE PREVIOUS AGREEMENT NORTHWEST HAS SAID HOWEVER THAT IT WON'T ACCEPT CHANGES THAT COST IT MONEY A NORTHWEST SPOKESMAN HAD NO COMMENT ON THE NEGOTIATIONS OR ON THE AIRLINE'S EFFORTS TO SAVE CASH IN CASE IT HAS TO FILE FOR BANKRUPTCYLAW PROTECTION 9307020020 930702 THURSDAY'S MARKETS STOCKS BONDS FINISH LOWER DOLLAR IS MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL MORE DISAPPOINTING ECONOMIC NEWS LEFT STOCKS MOSTLY LOWER LONGTERM BOND PRICES SLIPPED AND THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE FELL 554 POINTS TO 351054 STANDARD & POOR'S 500STOCK INDEX DROPPED 151 TO 44902 AND THE NASDAQ COMPOSITE INDEX EDGED DOWN 036 TO 70359 STOCK PRICES SLUMPED AFTER A WORSETHANEXPECTED REPORT ON THE MANUFACTURING SECTOR LONGTERM BOND PRICES ALSO FELL BECAUSE OF SURGING COMMODITIES QUOTES LED BY SHARP GAINS IN GRAIN PRICES BECAUSE OF BAD WEATHER IN THE MIDWEST GOLD LEAPED 9 TO 38820 PER OUNCE CARRYING GOLD STOCKS HIGHER OVERSEAS EUROPEAN STOCK MARKETS MOSTLY IGNORED LONGAWAITED INTEREST RATE CUTS BY GERMANY AND SEVERAL OTHER EUROPEAN COUNTRIES WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 038 TO 10632 IN MAJOR MARKET ACTION STOCK PRICES WERE MOSTLY LOWER VOLUME TOTALED 2812 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1185 ISSUES ROSE AND 825 FELL LONGTERM BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST LESS THAN 1/8 POINT OR LESS THAN 125 FOR EACH 1000 FACE AMOUNT TO YIELD 668 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16933 MARKS AND 10745 YEN COMPARED WITH 17035 MARKS AND 107 YEN WEDNESDAY 9307020018 930702 INTERNATIONAL WORLD ECONOMY CHINA MAY UNINTENTIONALLY PUT BRAKES ON HONG KONG GROWTH AFTER TAKEOVER BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG THE CONVENTIONAL VIEW IN HONG KONG IS THAT THIS PROSPEROUS AND PECULIAR PLACE IN ITS LAST YEARS AS A BRITISH COLONY FACES AN EVEN MORE GLORIOUS FUTURE AFTER IT BECOMES A SPECIAL ZONE OF CHINA FOUR YEARS FROM NOW CHINA IS BOOMING AND SO IS ASIA TRADE BETWEEN DEVELOPING ASIAN ECONOMIES NOW EXCEEDS THEIR COMMERCE WITH EUROPE AND NORTH AMERICA INVESTMENT FLOWS REFLECT THIS NEW PATTERN THUS THE WHOLE REGION NEEDS SOPHISTICATED COMMERCIAL SERVICES MORE THAN EVER MEETING THESE NEEDS MAY PROPEL HONG KONG INTO A WHOLE NEW DIMENSION OF GROWTH SUGGESTS HONGKONG & SHANGHAI BANKING CORP ITS LEADING COMMERCIAL AND DE FACTO CENTRAL BANK THE BANK IS A UNIT OF HSBC HOLDINGS PLC SIMON MURRAY CHIEF EXECUTIVE OF THE HUTCHISON GROUP A LEADING HONG KONG INVESTOR IS MORE ASSERTIVE ASIA WILL OUTSTRIP THE REST FOR 20 OR 30 YEARS AND RIGHT IN THE MIDDLE SITS HONG KONG YET THERE ARE DOUBTS THERE'S NO QUESTION THAT BEIJING WANTS HONG KONG TO THRIVE THIS ALLBUSINESS CITY BOOSTS THE ECONOMIC ADVANCE OF SOUTH CHINA HOME TO 300 MILLION PEOPLE AND AN 18 ECONOMIC GROWTH RATE LAST YEAR HONG KONG MONEY AND MANAGERS HAVE HELPED HARNESS RESOURCES IN SOUTHERN CHINA AND TURN IT FROM SUBSISTENCE FARMING TO LIGHT MANUFACTURING FOR WORLD MARKETS THIS SUCCESS HAS BEEN TOUTED AS A MODEL FOR ALL OF CHINA THE COUNTRY NEEDS 13 OR 14 HONG KONGS DENG XIAOPING ONCE SAID AND BEIJING LEADERS DON'T WANT TO DAMAGE A VALUABLE ASSET THAT SOON WILL BE THEIRS BUT THEY MIGHT EVEN IF BY ACCIDENT AND THE POSSIBILITY CAUSES AN OCCASIONAL QUIVER IN THIS GENERALLY CONFIDENT COLONY TO START WITH THERE'S THE SQUABBLE BETWEEN LONDON AND BEIJING ABOUT HOW DEMOCRATIC THE PLACE SHOULD BE WHEN IT'S TIME TO PASS THE TITLE IF UNRESOLVED IT COULD ERODE BUSINESS CONFIDENCE AND SQUELCH THE EXUBERANCE THAT GIVES HONG KONG ITS SPECIAL TONE THE BRITISH GOVERNOR APPARENTLY TO HELP HONG KONG RESIST POSSIBLE FUTURE DIKTATS FROM CHINA WANTS TO INTRODUCE MORE SELFRULE BEFORE HIS TIME RUNS OUT IF LOCAL PEOPLE RAN LOCAL AFFAIRS MORE OBVIOUSLY CHINA MIGHT FIND IT HARD TO RENEGE ON PROMISES TO LEAVE THE SOCIAL AND ECONOMIC SYSTEMS ALONE CHINA ACTS INSULTED OFFICIALS BRISTLE AT ANY SUGGESTION THEY WON'T KEEP THE STATUS QUO FOR AT LEAST 50 YEARS AFTER 1997 AS PLEDGED THEY ALSO SEE A BRITISH PLOT TO GIVE HONG KONG QUASISOVEREIGNTY PERHAPS IN CONSPIRACY WITH THE HATED TAIWAN INDEPENDENCE MOVEMENT AND DENY CHINA THE FULL PLEASURES OF REUNION AND THEY CONTEND THAT COSTLY BUILDING PLANS SUCH AS FOR A NEW AIRPORT ARE SCHEMES TO DRAIN HONG KONG'S WEALTH BEFORE CHINA GETS IT BACK WHEN IT COMES TO POLITICS SAYS A LEADING HONG KONG BUSINESSMAN I DON'T KNOW WHETHER TO GET DEPRESSED OR ASSUME THEY'LL SOMEHOW SORT IT OUT NEGOTIATORS PROBABLY WILL SORT IT OUT MORE ON CHINA'S TERMS THAN BRITAIN'S AND PREVENT THE WORST BUT EVEN SO THERE ARE OTHER CONCERNS ABOUT WHETHER HONG KONG WILL REMAIN A FREEWHEELING SOURCE OF CASH AND THE ENTREPRENEURIAL SPIRIT ONE IS AVARICE ESPECIALLY OF FRIENDS AND RELATIVES OF SENIOR CHINESE LEADERS WHO WANT TO GET RICH FAST THUS DOING BUSINESS WITH CHINA CAN INCLUDE PROVIDING LUCRATIVE JOBS FOR THE CHILDREN OF INFLUENCE OR GIVING OTHER REWARDS THE MENTALITY OF THESE PEOPLE THEIR DEGREE OF GREED IS ALARMING TO ME SAYS THE BOSS OF A LEADING FINANCIAL HOUSE WHO WONDERS MAYBE THEY KNOW SOMETHING WE DON'T MAYBE THEY'RE GETTING A PLACE BEFORE THEIR INFLUENCE DISSIPATES ANOTHER EXECUTIVE WORRIES THAT OFFICIALS FROM NEIGHBORING GUANGDONG PROVINCE IN PARTICULAR WILL MAXIMIZE THEIR OWN IMMEDIATE BENEFITS BY SQUEEZING HONG KONG AND CHANGING ITS BUSINESS RULES AND THESE RULES ESSENTIALLY BRITISH COMMERCIAL LAW AND ITS RELIABLE ENFORCEMENT UNDERLIE HONG KONG'S SUCCESS MANY EXECUTIVES WORRY THAT SELFISH MAINLANDERS NOT OFFICIAL BEIJING POLICY MAY WEAKEN THE VITAL SYSTEM THAT GIVES CREDIBILITY TO CONTRACTS AND OTHER BUSINESS PRACTICES HELMUT SOHMEN CHAIRMAN OF WORLDWIDE SHIPPING AGENCY LTD IS ONE WHO BELIEVES THE CURRENT GOVERNMENT SHOULD DO MORE TO ENSURE THIS LEGAL SYSTEM ENDURES IT'S VITAL HE SAYS THAT THE COMMON LAW TRADITION AND AN INDEPENDENT JUDICIARY SURVIVE WHEN INEVITABLY THE COURTS OPERATE IN CHINESE ASKS ANOTHER BUSINESS LEADER IF HONG KONG'S SPECIAL CHARACTERISTICS DON'T SURVIVE 1997 WHY COME HERE PERHAPS HE ADDS THEN WE'LL ALL BE IN SHANGHAI 9307020017 930702 US FIRMS UNDAUNTED BY NAFTA RULING MOST EXPECTED TO PUSH AHEAD SOUTH OF BORDER A WALL STREET JOURNAL NEWS ROUNDUP FULL SPEED AHEAD THAT SUMS UP THE PLANS OF MANY US BUSINESSES TO EXPAND IN MEXICO THE DELAY OF THE NORTH AMERICAN FREE TRADE AGREEMENT NOTWITHSTANDING WALL STREET JOURNAL REPORTERS INTERVIEWED EXECUTIVES IN SCORES OF COMPANIES LARGE AND SMALL IN A VARIETY OF INDUSTRIES MOST SEEMED UNDAUNTED BY THE FEDERAL JUDGE'S RULING THAT THE CLINTON ADMINISTRATION MUST FILE AN ENVIRONMENTALIMPACT STATEMENT EVALUATING THE EFFECTS OF THE TRADE ACCORD WHICH IS FAMILIARLY CALLED NAFTA TRUE US FARM EXPORTERS ARE DISMAYED AND SOME COMPANIES IN OTHER INDUSTRIES FEAR ADVERSE FINANCIAL EFFECTS FROM THE RULING BUT THEIR CONCERNS ARE LARGELY MINOR CHIEFLY WORRISOME TO US EXECUTIVES IS THE PROSPECT OF A DISRUPTED MEXICAN ECONOMY BUT FAR MORE COMMON IS THE TENDENCY TO REGARD THE RULING AS RELATIVELY INCONSEQUENTIAL PRIME EXAMPLES OF THOSE WITH THE PREVAILING ATTITUDE ARE COCACOLA CO AND PEPSICO INC BOTH SOFTDRINK GIANTS SAY THEY DON'T ANTICIPATE THAT THE JUDGE'S RULING WILL HAVE A HARMFUL EFFECT ON CURRENT OPERATIONS IN MEXICO PEPSICO RECENTLY ANNOUNCED PLANS TO INVEST 750 MILLION OVER THE NEXT FIVE YEARS IN MEXICO A COMPANY SPOKESMAN SAYS A DELAY IN NAFTA WILL HAVE NO BEARING ON THESE INVESTMENT PLANS SIMILARLY VISTA CHEMICAL CO OF HOUSTON SAYS THE JUDGE'S RULING ON NAFTA WON'T AFFECT ITS PLANS TO INVEST 250 MILLION IN A NEW MEXICAN PLANT THIS PROJECT THE COMPANY SAYS IS BEING DETERMINED ON ITS ECONOMIC VIABILITY IT ADDS WE HAVE NARROWED DOWN THE PLANT SITES IN MEXICO TO THREE IF ALL GOES AS EXPECTED STARTUP WILL BE IN 1996 ALSO IN HOUSTON OFFSHORE PIPELINES INC SAYS WITH OR WITHOUT NAFTA WE ARE GOING AHEAD WITH OUR MARINECONSTRUCTION BUSINESS IN THE BAY OF CAMPECHE ELSEWHERE IN TEXAS DUNCAN MUIR A SPOKESMAN FOR DALLASBASED JC PENNEY CO SAYS THE COMPANY'S PLANS TO OPEN THREE STORES IN MEXICO WITHIN THE NEXT FOUR YEARS WOULDN'T BE AFFECTED BY THE PASSAGE OR FAILURE OF NAFTA MR MUIR ADDS THAT PENNEY SUPPORTS NAFTA WE CERTAINLY BELIEVE IN FREE TRADE HE SAYS AT RIVAL SEARS ROEBUCK & CO ARTHUR C MARTINEZ CHAIRMAN OF SEARS'S MERCHANDISE DIVISION SAYS THE NAFTA DEVELOPMENTS HAVEN'T CHANGED THE COMPANY'S AGGRESSIVE GROWTH PLANS FOR ITS MEXICAN UNIT WHICH INCLUDES SOME 39 STORES SEARS PLANS TO OPEN THREE TO FOUR STORES A YEAR IN MEXICO OVER THE NEXT FEW YEARS MR MARTINEZ SAYS HE BELIEVES NAFTA EVENTUALLY WILL BE APPROVED THE BIGGER QUESTION IS WHETHER THE FAILURE TO IMPLEMENT THE AGREEMENT NOW SLOWS DOWN THE OVERALL ECONOMY IN MEXICO HE SAYS AND IF IT DID THAT WOULD BE A CONCERN TO US HIS WORDS ARE ECHOED BY KONRAD SCHLATTER CHIEF FINANCIAL OFFICER OF CPC INTERNATIONAL INC ENGLEWOOD CLIFFS NJ WHO SAYS WHAT WE SEE AS THE MOST DISTURBING ASPECT OF A POSSIBLE DELAY OF NAFTA IS THAT THE MEXICAN ECONOMY MIGHT DEVELOP AT A SLOWER PACE THAN IT WOULD WITH THE PACT THUS CONSTRAINING DEMAND FOR HIS COMPANY'S FOOD PRODUCTS MR SCHLATTER STRONGLY SUPPORTS NAFTA AND THINKS IT WOULD BENEFIT CPC WHICH HAS BEEN MAKING AND SELLING PRODUCTS IN MEXICO FOR 50 YEARS I DON'T BELIEVE THAT THERE WILL A DEMISE OR ANY PROLONGED DELAY OF NAFTA MR SCHLATTER SAYS PRESIDENT CLINTON WILL SHOW LEADERSHIP AND GET THIS ISSUE SETTLED IN DAYS OR WEEKS BUT IF THERE IS A DELAY HE SAYS IT IS NOT A PROBLEM FOR US WE ARE ALREADY THERE HEWLETTPACKARD CO SAYS THE JUDGE'S NAFTA RULING WILL HAVE NO IMPACT ON ITS GROWTH PLANS IN MEXICO SINCE 1990 THE TECHNOLOGY COMPANY'S EMPLOYMENT HAS NEARLY DOUBLED TO 870 PEOPLE IN SALES AND MANUFACTURING WE HAVE BEEN MOVING AHEAD AND OUR BUSINESS IS GROWING NICELY THERE WITH OR WITHOUT NAFTA SAYS A SPOKESMAN FOR HEWLETTPACKARD WHICH IS BASED IN PALO ALTO CALIF ZENITH ELECTRONICS CORP IS STILL OPTIMISTIC THAT NAFTA WILL PASS CONGRESS SOON SAYS JERRY K PEARLMAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE GLENVIEW ILLBASED ELECTRONICS CONCERN HE SAYS HE EXPECTS THE CLINTON ADMINISTRATION TO CONTINUE TO PUSH NAFTA HARD RESULTING IN A DELAY IN THE WORST CASE AND WHILE THE COMPANY SAYS IT HAS NO INTENTION OF CHANGING ITS INVESTMENT PLANS A FEW HUNDRED PROJECTED NEW JOBS AT ZENITH'S MELROSE PARK ILL PICTURETUBE PLANT MAY BE DEPENDENT ON WHETHER NAFTA GOES THROUGH MR PEARLMAN SAYS THE JUDGE'S MOVE REPRESENTS A BIGGER BLOW TO US FARM EXPORTERS FOR WHOM MEXICO IS THE HOTTEST EMERGING MARKET THE BIGGEST US FARMEROWNED COOPERATIVE FARMLAND INDUSTRIES INC OF KANSAS CITY MO SAYS A LENGTHY DELAY WILL FORCE IT TO RETHINK ITS PLAN TO LAUNCH SEVERAL JOINT VENTURES IN MEXICO THIS IS SOMETHING THAT WILL HAVE TO RECONSIDERED SAID HARRY CLEBERG FARMLAND'S PRESIDENT AND CHIEF EXECUTIVE OFFICER PROCTER & GAMBLE CO SAYS PASSAGE OF NAFTA WOULD DOUBLE ITS BUSINESS IN MEXICO TO 200 MILLION A YEAR FROM THE CURRENT 100 MILLION BY REDUCING TARIFFS AND TAXES ON PRODUCTS CROSSING THE BORDER ANY DELAY CAUSED BY THE COURT DECISION JEOPARDIZES THAT POSSIBLE SALES EXPANSION P&G SAYS IF NAFTA DOESN'T PASS WE'LL LOSE THE POSSIBILITY OF MOVING OUR PRODUCT FREELY ACROSS THE BORDERS A P&G SPOKESMAN SAYS IT'S AN EXPORTIMPORT ISSUE FOR US CINCINNATIBASED P&G CURRENTLY EXPORTS TOILET TISSUE JUICE DRINKS SHAMPOO POTATO CHIPS BODY LOTION AND DISPOSABLE DIAPERS TO MEXICO RICHARD HUBER VICECHAIRMAN OF CHICAGO'S CONTINENTAL BANK CORP IS CONCERNED THAT THE DELAY OF NAFTA WILL MEAN LESS TRADE BETWEEN CONTINENTAL'S CLIENTS AND MEXICAN COMPANIES THIS IS LUNATIC HE SAYS OF THE JUDGE'S RULING THE NEXT THING YOU KNOW WE'LL HAVE AN ENVIRONMENTIMPACT STATEMENT BEFORE WE ATTACK BAGHDAD ON TUESDAY CONTINENTAL STAGED A DINNER FOR OFFICIALS FROM THE MEXICAN INVESTMENT BOARD AND BIG CHICAGO COMPANIES BECAUSE OF THE RULING TRADE WILL FALL AND OUR ABILITY TO MAKE MONEY FROM FINANCING TRADE WILL BE IMPACTED SAYS MR HUBER STILL OTHER BANKERS NOTE THAT TRADE FLOWS WERE INCREASING EVEN BEFORE NAFTA AND WILL LIKELY CONTINUE THIS IS NOT THE DEATH KNELL SAYS KEVIN MULVANEY EXECUTIVE VICE PRESIDENT AT BANK OF BOSTON CORP WHICH IS ACTIVE IN LATIN AMERICA AND WOULD IMMEDIATELY APPLY FOR A MEXICAN BANKING LICENSE IF NAFTA IS APPROVED MANY EXECUTIVES ARE CONFIDENT THAT NAFTA WILL PASS IN TIME AT CORNING INC FOR EXAMPLE TIM REGAN A DIVISION VICE PRESIDENT AND DIRECTOR OF PUBLIC POLICY EXPECTS THAT THE FEDERAL COURT'S DECISION WILL BE APPEALED AND ON APPEAL IT COULD BE REVERSED I'M NOT PESSIMISTIC AT ALL THIS DEAL IS SO FAVORABLE TO THE US IT HAS TO BECOME LAW CORNING BASED IN CORNING NY SAYS THE NAFTA SNAG DOESN'T AFFECT ANY OF OUR PLANS SINCE THE GLASSWARE TELECOMMUNICATIONS SPECIALTY MATERIALS AND LABSERVICES CONCERN ALREADY HAS A FIRM FOOTHOLD IN MEXICO LAST YEAR CORNING MADE ITS FIRST EXPORTS TO MEXICO ABOUT 8 MILLION OF GLASSWARE DESPITE THE 20 TARIFFS CERTAINLY WE HAD BEEN PLANNING TO GET ZERO DUTY TREATMENT FOR EXPORTS AS OF JAN 1 1994 MR REGAN SAYS ADDING THAT HE STILL EXPECTS THAT TO HAPPEN ONE INDUSTRY THAT IS SOMEWHAT CHEERED BY THE FEDERAL JUDGE'S NAFTA DECISION IS THE ENVIRONMENTALSERVICES SECTOR AT LEVINEFRICKE DE MEXICO SA THE MEXICAN AFFILIATE OF A SAN FRANCISCOBASED ENVIRONMENTALSERVICES FIRM EXECUTIVE ENRIQUE MEDINA SAYS THE ENVIRONMENTAL BUSINESS WILL CONTINUE TO BE GOOD BECAUSE FOREIGN INVESTOR INTEREST HAS BEEN WETTED MUCH OF OUR BUSINESS COMES FROM THAT AND THOSE PEOPLE ARE CONCERNED ABOUT PUBLIC IMAGE AND ENVIRONMENTAL ISSUES SEE RELATED STORY MEXICO MAY ABIDE BY TERMS ACCORD OR NO WSJ JULY 2 1993 CORRECTIONS & AMPLIFICATIONS JC PENNEY CO PLANS TO OPEN FIVE STORES IN MEXICO WITHIN THE NEXT FOUR YEARS AN ARTICLE FRIDAY ABOUT THE NORTH AMERICAN FREE TRADE AGREEMENT INCORRECTLY SAID THAT THE RETAILER PLANNED TO OPEN THREE STORES WSJ JULY 6 1993 9307020016 930702 HEARD ON THE STREET GROWTH FUND OF SPAIN DESPITE SHORT SELLING AND NATION'S ILLS LOOKS GOOD TO ONE MANAGER BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SOMEBODY DISAGREES WITH LEON COOPERMAN OVER THE FUTURE OF THE SPANISH STOCK MARKET ON JUNE 2 THE ONETIME HEAD OF GOLDMAN SACHS ASSET MANAGEMENT WHO NOW RUNS OMEGA ADVISORS BOUGHT 900000 SHARES OF GROWTH FUND OF SPAIN FOR 850 EACH ABOUT A 13 DISCOUNT TO NET ASSET VALUE BUT GET THIS SOMETIME BETWEEN MAY 15 AND JUNE 15 SHORT INTEREST IN THE FUND CLIMBED 50602 SHARES MAKING IT THE LEADING BIG BOARD ISSUE FOR THE PERIOD IN TERMS OF A PERCENTAGE INCREASE OF SHARES SOLD SHORT MR COOPERMAN DOESN'T THINK THE SHORTINTEREST RISE IS A TECHNICAL ABERRATION RELATED TO HIS TRADE SOMEBODY IS LEANING ON THE FUND HOPING THE SPANISH STOCK MARKET CRUMBLES WHO CALLS TO THE USUAL SUSPECTS OF SHORT SELLING PRODUCED THE USUAL DENIALS HOWEVER RUMOR IS THAT SOME AGGRESSIVE HEDGE FUNDS ARE BETTING AGAINST EUROPEAN STOCK MARKETS THROUGH SHORT SALES OF CLOSEDEND FUNDS AND SOME STOCKS EMERGING GERMANY FUND ANOTHER BIG BOARD CLOSEDEND LISTING SHOWED A LARGE PERCENTAGE INCREASE IN SHARES SOLD SHORT DURING THE PERIOD AS DID THE AMERICAN DEPOSITARY RECEIPTS OF TIPHOOK PLC A LESSOR OF SHIPPING CONTAINERS WHOSE EARNINGS SWING WITH EUROPEAN ECONOMIES AND CURRENCIES THERE'S PLENTY OF REASONS TO BE NEGATIVE ON THE SPANISH ECONOMY MR COOPERMAN HAS REASONS TO BE BULLISH ON GROWTH FUND OF SPAIN HERE'S THE DEBATE UNEMPLOYMENT IN SPAIN IS AT RECORD HIGHS THE PESETA HAS BEEN THROUGH SEVERAL DEVALUATIONS IN THE PAST 12 MONTHS AFTER 11 YEARS OF RULE THE FREESPENDING SOCIALIST PARTY JUST WON A PARLIAMENTARY ELECTION AGAIN THE GOVERNMENT IS BEING ROUNDLY CRITICIZED FOR A LARGE BUDGET DEFICIT GROSS DOMESTIC PRODUCT IS EXPECTED TO DECLINE 1 THIS YEAR AND LAST YEAR IT GREW ONLY 05 ANOTHER PESETA DEVALUATION WHICH WOULD HURT INVESTORS WHO TRANSLATE PERFORMANCE INTO DOLLARS ISN'T OUT OF THE QUESTION SOUNDS BAD NOT TO CONTRARIANS MR COOPERMAN AND SOME OTHER WELLREGARDED INTERNATIONAL STOCKPICKERS THINK SPAIN IS A PRETTY PLACE TO BE PRECISELY BECAUSE THE ECONOMY IS UGLY THE BULLS HAVE HELPED PUSH THE MADRID GENERAL INDEX UP ABOUT 21 IN THE FIRST HALF OF THIS YEAR IN LOCAL CURRENCY TERMS THE MARKET VALUE OF GROWTH FUND OF SPAIN IS UP 197 IN THE FIRST HALF NET ASSET VALUE IS UP 79 IN OTHER WORDS THE FUND'S DISCOUNT TO NET ASSET VALUE DECREASED DESPITE RECENT GAINS THE BULLS THINK THE SPANISH MARKET IS STILL CHEAP RELATIVE TO THE US MARKET BASICALLY I THINK THE US STOCK MARKET IS ADEQUATELY PRICED I THINK EUROPEAN MARKETS BASED ON OUR EXPECTATIONS OF FURTHER DECLINES IN INTEREST RATES WILL BE A MORE ATTRACTIVE PLACE TO BE MR COOPERMAN EXPLAINS WHAT ABOUT SPAIN'S ECONOMIC MISERY THIS FUND HAS A HIGH COMPONENT OF FINANCIAL STOCKS YOU CAN BUY AT A DISCOUNT TO NAV THAT MOTIVATED OUR DECISION HE ADDS HERE'S THE KEY MR COOPERMAN AND OTHER BULLS ON SPAIN EXPECT THE CENTRAL BANK TO LOOSEN THE MONETARY VALVE AS INTEREST RATES FALL STOCKS COULD RUN AS THEY DID IN THE US WHEN THE FEDERAL RESERVE BOARD SLASHED RATES TO BUFFER THE ECONOMIC DOWNTURN THE PROS CALL IT A LIQUIDITY RALLY IF YOU LOOKED AT THE ECONOMIC DATA IT DOESN'T LOOK LIKE A MARKET YOU WOULD BENEFIT IN SAYS MICHAEL HOWELL GLOBAL STRATEGIST AT BARING SECURITIES BUT SPAIN'S MONETARY BASE IS EXPANDING WHAT ULTIMATELY DRIVES MARKETS IS THE MONEY THAT'S IN THEM HE SAYS BARING RATES SPAIN SECOND ONLY TO AUSTRIA AS THE MOST ATTRACTIVE STOCK MARKET IN THE WORLD TODAY WHAT ABOUT THE DEVALUATION RISK HISTORICALLY THE STOCK MARKET HAS JUMPED VERY SHARPLY EACH TIME THE CURRENCY HAS DEVALUED SAYS CHRISTIAN WIGNALL CHIEF INVESTMENT OFFICER OF THE GT GLOBAL MUTUAL FUNDS HOW'S THAT AGAIN THE CENTRAL BANK DOESN'T NEED TO KEEP RATES HIGH TO DEFEND A WEAK CURRENCY HE EXPLAINS I THINK SPAIN IS ONE OF THE BEST VALUES OF ALL MARKETS IN THE WORLD HE SAYS SO DOES FIDELITY INVESTMENTS A SPOKESWOMAN FOR THE MUTUAL FUND GIANT SAYS THE FIRM IS VERY BULLISH AND OVERWEIGHTED IN THE SPANISH MARKET CONTACTED IN MADRID GONZALO MILANS DEL BOSCH MANAGER OF THE GROWTH FUND OF SPAIN OUTLINED HIS STRATEGY HE EXPECTS SHORTTERM INTEREST RATES TO FALL ONE PERCENTAGE POINT TO AROUND 95 BY YEAR END TO POSITION FOR A RATE DECLINE HE HAS BOUGHT BANK AND UTILITY STOCKS AND SHARES OF INDEBTED COMPANIES THAT CAN REFINANCE AT LOWER INTEREST RATES AND PUT MORE EARNINGS ON THE BOTTOM LINE SPECIFICALLY THE FUND OWNS ELECTRIC UTILITIES EMPRESA NACIONAL DE ELECTRICIDAD ENDESA AND IBERDROLA AND BANKS SUCH AS BANCO BILBAOVIZCAYA AND BANCO POPULAR FOR A REFINANCING PLAY THE FUND MANAGER BOUGHT COMPANIA TELEFONICA NACIONAL DE ESPANA AND THE TOLLWAY COMPANY AUTOPISTAS CONCESIONARIOS OR ACESA FINALLY TO PLAY A CHEAPENING PESETA THE FUND OWNS EXPORT COMPANIES SUCH AS ACERINOX AND VISCOFAN ABOUT 65 OF THE FUND'S CURRENCY EXPOSURE IS HEDGED READY TO RUN WITH THE BULLS WATCH YOUR STEP SOCALLED LIQUIDITY RALLIES CAN GO ON FOR A YEAR OR MORE BUT EVENTUALLY EARNINGS GROWTH DRIVES STOCK PRICES IF THE ECONOMY DOESN'T RESUSCITATE OR IF THE RATE CUTS JUST PRODUCE INFLATION THE MARKET COULD GET HURT I WILL WORRY ABOUT THAT WHEN IT HAPPENS SAYS MR WIGNALL OF GT GLOBAL AT THIS STAGE FALLING RATES IS A MUCH MORE IMPORTANT THING HE ADDS LIQUIDITY IS THE STORY IN SPAIN NOT PROFITS 9307020015 930702 COMMODITIES GOLD SURGES IN HUGE RALLY LED BY EUROPE BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AGGRESSIVE BUYING THAT BEGAN IN EUROPE PROPELLED GOLD PRICES TO THEIR HIGHEST LEVEL SINCE THE BEGINNING OF 1991 GOLD FOR AUGUST DELIVERY SOARED 9 TO 38820 AN OUNCE IN TRADING ON NEW YORK'S COMMODITY EXCHANGE IT WAS A HUGE MOVE SAID SCOTT MEYERS SENIOR COMMODITY ANALYST WITH REDEL TRADING IN NEW YORK WE'RE SEEING THE NEXT LEG UP IN THE RALLY ECHOING A NUMBER OF OTHER ANALYSTS AND TRADERS HE PREDICTED THAT GOLD IS HEADED FOR 400 AN OUNCE OR HIGHER THIS MONTH THE SURGE IN GOLD CAME AFTER THE PRECIOUS METAL HAD LANGUISHED FOR WEEKS IN A NARROW TRADING RANGE BELOW 380 A SHARP RISE IN SOME COMMODITY PRICES AND A WAVE OF INTERESTRATE CUTS IN EUROPE PROVIDED THE SPARKS TO TOUCH OFF THE RALLY GOLD IS A TRADITIONAL HAVEN AGAINST INFLATION THE MARKET MOVED UP ON EXTREMELY AGGRESSIVE BUYING BY COMMODITY FUNDS OR MANAGED POOLS OF INVESTORS' MONEY MR MEYERS SAID SPECULATIVE BUYING BY SUCH FUNDS HAS BEEN THE POWER BEHIND THE 19 RALLY IN GOLD FUTURES PRICES FROM LEVELS AROUND 327 IN LATE MARCH I'D BEEN LOOKING FOR THIS MOVE FOR A WHILE SAID GERARD POLLINO A SENIOR GOLD TRADER WITH MILLENIUM FUTURES GROUP INC IN NEW YORK HE SAID THAT SUPPLY AND DEMAND FUNDAMENTALS FOR GOLD REMAIN GENERALLY BULLISH WITH ASIAN DEMAND FOR THE METAL ONCE AGAIN PICKING UP THE MARKET'S BEEN BUILDING UP STEAM FOR THE LAST WEEK SAID MR POLLINO NOTING THAT EACH TIME PRICES RETREATED NEW BUYERS CAME INTO THE MARKET TO A LARGE EXTENT THE STRENGTH IN GOLD'S MOVE CAME FROM THE UNDERLYING STRENGTH OF OTHER COMMODITIES THIS WEEK LIKE GRAINS SOYBEANS AND PALLADIUM HE EXPECTS GOLD TO RISE AS HIGH AS 420 AN OUNCE IF WE CONTINUE TO GET A TRANSFER OF FUNDS FROM EQUITY AND FIXEDINCOME INVESTMENTS INTO GOLD WE COULD DEFINITELY SEE IT GO HIGHER HE SAID MR MEYERS THE REDEL ANALYST AGREED FOR THE FIRST TIME SINCE THE EARLY 1980S PROFESSIONAL EQUITY ADVISERS ARE SUGGESTING THAT THEIR LARGER CLIENTS PUT A PORTION OF THEIR PORTFOLIO INTO METALS HE SAID THAT CHANGE IN PSYCHOLOGY TOWARD INVESTING IN TANGIBLE ASSETS SHOULD CONTINUE TRADERS NOTED THAT GOLD DREW SUPPORT FROM A 13 SURGE IN THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 FUTURES CONTRACTS TO 20973 THAT RISE IN THE WIDELY FOLLOWED BAROMETER OF FUTURE INFLATION CAME AMID A WEATHERRELATED SPURT IN GRAIN PRICES AND CONTINUED STRENGTH IN OTHER PRECIOUS METALS INCLUDING PALLADIUM PLATINUM AND SILVER SILVER FOR DECEMBER DELIVERY JUMPED 212 CENTS TO 4849 AN OUNCE ALSO SUPPORTED BY HEAVY FUND BUYING DEALERS SAID SILVER CLOSED AT ITS HIGHEST LEVEL SINCE SEPT 28 1990 SOME ANALYSTS SAID GOLD BEGAN TO RALLY IN EUROPEAN TRADING AFTER THE GERMAN BUNDESBANK SLASHED KEY LENDING RATES FOLLOWED BY SIMILAR CUTS BY OTHER EUROPEAN CENTRAL BANKS THOSE RATE CUTS REKINDLE THE POTENTIAL FOR A MORE INFLATIONARY ATMOSPHERE IN EUROPE WHICH WOULD BE BULLISH FOR GOLD SAID WILLIAM O'NEILL SENIOR FUTURES STRATEGIST FOR MERRILL LYNCH IN NEW YORK ADDS BERNARD SAVAIKO COMMODITY ANALYST WITH PAINEWEBBER THE MARKET PERCEPTION WAS THAT THE BUNDESBANK MAY BE LOSING ITS RESOLVE TO COMBAT INFLATION PUTTING MORE PRIORITY ON TURNING AROUND ITS AILING ECONOMY THIS MAY BE THE CATALYST THAT BRINGS EUROPEAN INVESTORS WHO HAD BEEN LUKEWARM TOWARD GOLD BY AND LARGE INTO THE MARKET MR O'NEILL CAUTIONED THAT EUROPEAN CENTRAL BANKS AS WELL AS GOLD PRODUCERS MAY BE TEMPTED TO SELL GOLD INVENTORY IF THE PRICE RISES SUBSTANTIALLY ABOVE 400 AN OUNCE BUT FOR NOW THERE DOES NOT APPEAR TO BE ANY CENTRAL BANK SELLING HE SAID IAN MACDONALD WHO MANAGES PRECIOUS METALS TRADING FOR CREDIT SUISSE IN NEW YORK IS EVEN LESS WORRIED ABOUT CENTRAL BANK SALES WHICH LAST YEAR DEPRESSED PRICES THE LIKELIHOOD OF CENTRAL BANKS SELLING INTO RALLIES HAS BECOME LESS AND LESS HE SAID THE CENTRAL BANKS HAVE REALLY BEEN ON THE SIDELINES EVER SINCE THE DUTCH AND BELGIAN CENTRAL BANKS SOLD AROUND 400 METRIC TONS OF BULLION NEAR THE BOTTOM OF A 13YEAR BEAR MARKET I THINK GOLD WILL MOVE INTO A 400 TO 450 RANGE HE SAID IT WAS COMFORTABLY SETTLED IN THAT RANGE IN THE MID80S MR MACDONALD SAID SOME OF THE COMMODITY FUNDS' BUYING MAY HAVE BEEN ENCOURAGED BY NEWS THAT ANGLOFRENCH FINANCIER SIR JAMES GOLDSMITH WOULD INVEST MUCH OF THE PROCEEDS FROM A PLANNED DISPOSAL OF 85 MILLION SHARES IN NEWMONT MINING CORP IN GOLD SIR JAMES HELPED TRIGGER THE RALLY IN GOLD IN LATE MARCH WHEN HE ANNOUNCED A SALE OF A LARGE STAKE IN NEWMONT TO GEORGE SOROS AND A SUBSEQUENT INVESTMENT OF A PORTION OF THE PROCEEDS FROM THAT SALE IN GOLD OPTIONS IN OTHER COMMODITY MARKETS YESTERDAY ENERGY IRAQ IS BACK AT THE TOP OF THE LIST OF FACTORS INFLUENCING PETROLEUM FUTURES PRICES NEWS THAT IRAQ IS MEETING JULY 7 WITH UNITED NATIONS OFFICIALS FOR TALKS REGARDING THE ONETIME SALE OF OIL AND THAT THE US HASN'T OBJECTED HAMMERED AUGUST CRUDE PRICES PUSHING THEM DOWN 40 CENTS A BARREL TO 1845 UN SANCTIONS AGAINST IRAQ HAVE KEPT THAT COUNTRY'S CRUDE OFF WORLD MARKETS SINCE IT INVADED KUWAIT NEARLY THREE YEARS AGO BUT THE UN HAS SAID THAT UNDER CERTAIN CONDITIONS IRAQ COULD SELL 16 BILLION IN OIL FOR HUMANITARIAN PURPOSES GASOLINE FUTURES ALSO TUMBLED IN NEW YORK MERCANTILE EXCHANGE TRADING DUE IN LARGE PART TO A REPORT FROM THE DEPARTMENT OF ENERGY SHOWING WEAKERTHANEXPECTED DEMAND FOR THE NATION'S AMPLE GASOLINE SUPPLIES AUGUST GASOLINE FELL 105 CENTS A GALLON TO 5383 CENTS HEATING OIL FOR AUGUST SLIPPED 082 CENT A GALLON TO FINISH AT 5166 CENTS AUGUST NATURALGAS PRICES SLID SIX CENTS PER MILLION BRITISH THERMAL UNITS TO 2121 ONE MILLION BTUS IS ROUGHLY EQUIVALENT TO A THOUSAND CUBIC FEET OF NATURAL GAS 9307020014 930702 BUSINESS BRIEFS GENTEX CORP RECEIVED A 3 MILLION PURCHASE ORDER TO SUPPLY ITS INTERIOR NIGHT VISION SAFETY MIRROR TO FORD MOTOR CO FOR SEVERAL FSERIES PICKUPS AND BRONCO SPORTUTILITY VEHICLES HUBCO INC COMPLETED THE ACQUISITION OF PILGRIM STATE BANK A SUBSIDIARY OF RAMAPO FINANCIAL CORP RESCARE INC BOUGHT THREE FACILITIES IN INDIANA FOR PATIENTS WITH MENTAL RETARDATION FROM BEVERLY ENTERPRISES INC TERMS WEREN'T DISCLOSED STERLING SOFTWARE INC COMPLETED ITS ACQUISITION OF SYSTEMS CENTER INC IN A TRANSACTION VALUED AT ABOUT 156 MILLION DATA GENERAL CORP WILL SUPPLY PERSONAL COMPUTERS AND NETWORK SERVERS VALUED AT ABOUT 35 MILLION UNDER A CONTRACT AWARDED TO CORDANT INC BY THE DEPARTMENT OF DEFENSE ORNDA HEALTHCORP COMPLETED ITS PURCHASE OF FLORIDA MEDICAL CENTER IN FORT LAUDERDALE FLA FOR 113 MILLION CASH 9307020013 930702 DIVIDEND NEWS JACKPOT ENTERPRISES INC JACKPOT ENTERPRISES INC LAS VEGAS DECLARED A QUARTERLY OF EIGHT CENTS A SHARE PLUS A 10 STOCK DIVIDEND PAYABLE JULY 30 TO STOCK OF RECORD JULY 16 SHARES DISTRIBUTED AS PART OF THE STOCK DIVIDEND WHICH IS COMPRISED OF A 5 ANNUAL DIVIDEND AND A 5 SPECIAL DIVIDEND WON'T RECEIVE THE CASH DIVIDEND THE COMPANY SAID THE CONVERSION PRICE OF ITS WARRANTS WOULD CHANGE TO 1568 A SHARE FROM 1725 A SHARE ON THE RECORD DATE AS A RESULT OF THE STOCK DIVIDEND 9307020012 930702 CREDIT RATINGS NEW YORK STANDARD & POOR'S CORP SAID IT RAISED ITS RATINGS ON 2506 MILLION OF SOUTHLAND CORP'S SENIOR UNSECURED DEBT TO DOUBLEBPLUS FROM SINGLEBPLUS AND 6978 MILLION OF ITS SUBORDINATED DEBT TO DOUBLEBPLUS FROM SINGLEB THE RATINGS WERE ALSO REMOVED FROM THE AGENCY'S CREDITWATCH LIST WHERE THEY WERE PLACED SEPT 14 1992 S&P AFFIRMED ITS A1PLUS RATING ON SOUTHLAND'S COMMERCIAL PAPER PROGRAM WHICH ISN'T ON CREDITWATCH BASED ON THE GUARANTEE OF UNRATED JAPANESE PARENT ITOYOKADO CO WHICH OWNS 6998 OF SOUTHLAND OPERATOR OF THE SEVENELEVEN CONVENIENCE STORE CHAIN THE IMPLIED SENIOR SECURED RATING IS TRIPLEBMINUS THE COMPANY HAS NO SENIOR SECURED DEBENTURES BUT HAS 2004 MILLION IN SECURED BANK LOANS S&P SAID THE UPGRADES REFLECT THE COMPANY'S IMPROVING FINANCIAL PROFILE AS WELL AS GREATER SUPPORT FROM ITOYOKADO 9307020011 930702 CONTRACTS DECLINE FOR CONSTRUCTION DODGE DATA SAY BY STEPHANIE FERRELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DESPITE LOW INTEREST RATES CONTRACTING FOR NEW CONSTRUCTION DECLINED 5 IN MAY ESPECIALLY IN NONRESIDENTIAL BUILDING SAID FW DODGE THE MCGRAWHILL INC FORECASTING UNIT THE DODGE INDEX OF CONSTRUCTION CONTRACTS WHICH USES 1987 AS A BASE YEAR OF 100 SLIPPED TO A SEASONALLY ADJUSTED 91 FROM THE REVISED APRIL AND MARCH LEVELS OF 96 THE INDEX HAS DECLINED SINCE REACHING A PEAK OF 106 LAST OCTOBER THE HIGHEST LEVEL IN THE PAST 3 1/2 YEARS THE CONSTRUCTION INDUSTRY SEEMS TO BE STUCK IN A HOLDING PATTERN FOR NOW SAID ROBERT A MURRAY DODGE'S VICE PRESIDENT OF ECONOMIC AFFAIRS WHEREAS A FEW MONTHS AGO THE LOSS OF MOMENTUM COULD BE ASCRIBED TO HARSH WINTER WEATHER THE LACKLUSTER TOTALS SO FAR THIS SPRING ARE BECOMING MORE REMINISCENT OF 1992'S MIDYEAR DOLDRUMS HE SAID UNCERTAINTY ON THE PART OF CONSUMERS AND BUSINESS IS KEEPING A LID ON THIS RECOVERY IT'S BECOME INCREASINGLY DOUBTFUL THAT TOTAL CONSTRUCTION IN 1993 EVEN WITH A SECONDHALF PICKUP WILL BE ABLE TO MATCH LAST YEAR'S 8 GAIN RESIDENTIAL CONSTRUCTION FELL 5 TO 1074 BILLION SEASONALLY ADJUSTED DECLINING IN BOTH SINGLE AND MULTIFAMILY CONTRACT TOTALS EACH OF THE MAJOR REGIONS SUSTAINED A REDUCTION IN ACTIVITY DURING MAY AND VOLUME WAS ABOUT 15 BELOW THE YEAREND LEVELS SINGLEFAMILY HOUSING IS STILL THE KEY TO GETTING THE CONSTRUCTION RECOVERY GOING AGAIN BUT ITS SLOW START IN 1993 IS CAUSING CONCERN ABOUT JUST HOW MUCH SUPPORT CAN NOW BE EXPECTED SAID MR MURRAY NONRESIDENTIAL BUILDING WAS AT AN ANNUAL RATE OF 7357 BILLION FALLING 9 FROM APRIL'S 8123 BILLION DESPITE RECENT STRENGTH INSTITUTIONAL BUILDING FELL BACK COMPARED WITH OTHER AREAS CONSTRUCTION OF SCHOOLS FELL TO A LEVEL MORE CONSISTENT WITH THAT REPORTED IN 1992 ACCORDING TO DODGE CONTRACTING FOR OFFICES AND HOTELS REMAINED DISMAL WHILE CONTRACTING FOR STORES AND SHOPPING MALLS SHOWED SURPRISING RESILIENCE SINCE 1991 OFFICES AND STORES HAVE MOVED IN DIVERGENT DIRECTIONS MR MURRAY COMMENTED OFFICE CONTRACT VALUE HAS FALLEN AN ADDITIONAL 10 WHILE THE TURNAROUND FOR STORE CONSTRUCTION ONE OF THIS YEAR'S FEW BRIGHT SPOTS HAS BROUGHT ITS CURRENT LEVEL OF ACTIVITY ABOUT 10 ABOVE THE 1991 AVERAGE NONBUILDING CONSTRUCTION WHICH CONSISTS OF PUBLIC WORKS AND UTILITIES ROSE 4 TO 5570 BILLION ADJUSTED ANNUAL RATE IN MAY HIGHWAY AND BRIDGE CONSTRUCTION SHOWED ITS BEST YEARTODATE LEVEL WHILE CONTRACTS FOR SEWER AND WATER PROJECTS DECLINED SHARPLY THE ELECTRIC POWER PLANT CATEGORY ALSO IMPROVED DURING MAY FOR THE JANUARYMAY PERIOD OF 1993 THE UNADJUSTED TOTAL VALUE OF CONSTRUCTION CONTRACTS WAS OFF 1 TO 9981 BILLION FROM YEAREARLIER LEVELS NONRESIDENTIAL BUILDING DECLINED 11 FOR THE PERIOD TO 3081 BILLION RESIDENTIAL BUILDING ROSE 4 TO 4608 BILLION AND NONBUILDING CONSTRUCTION ROSE 2 TO 2291 BILLION REGIONALLY THE WEST WAS HARDEST HIT WITH AN 8 UNADJUSTED DECLINE NORTHCENTRAL AND NORTHEAST REGIONS DECLINED 5 THE SOUTHCENTRAL REGION ROSE 8 AND THE SOUTH ATLANTIC GAINED 7 9307020010 930702 LEISURE & ARTS BOOKSHELF A GATSBYISH TALE OF NEW YORK IN THE '80S BY JOANNE KAUFMAN LIBBY ALEXANDER THE NARRATOR OF JULIE BAUMGOLD'S GNOMIC TALE OF THE FRESHLY MINTED MONEYED IN '80S NEW YORK IS A MUSTREAD NEWSPAPER GOSSIP COLUMNIST KNOWN AS THE PIMPERNEL DESPITE HER CROOKED EYES THE PIMPERNEL SEES EVERYTHING DESPITE THE FACT THAT SHE'S DEAF IN ONE EAR SHE CAN HEAR A CONVERSATION FOUR TABLES AWAY THAT WAS ME THE ONE OFF TO THE SIDE WITH THE NOTEPAD THE WATCHER THE SPY THE ONE CAUSING SILENCES INTERRUPTING THE MERRIMENT AS I PASS THE ONE LOOKING UP INTO SKIES FOR THE HURTING DOOMSDAY ROCK LISTENING WITH ONE GOOD EAR FOR THE WHOOSH OF DISASTER LIBBY OF COURSE KNOWS ALL THE PLAYERS THE BANKERS THE BOND TRADERS THE BUYOUT KINGS AND THE TROPHY WIVES WITH THEIR BALLERINA ARMS EACH WITH A TINY POPPING MUSCLE SHE KNOWS THEIR TASTES THEIR WEAKNESSES THEIR INDISCRETIONS THEIR ENEMIES THEIR SECRET SURGERIES THE STATE OF THEIR BANK ACCOUNTS AND MARRIAGES KNOWS THEIR DEEPEST DESIRES SOMETIMES I LIKE TO AID PEOPLE IN THEIR DESIRES BUT OFTEN I AM JUST AS HAPPY TO OBSTRUCT THEM I LIKE BEING A GOBETWEEN I ENJOY TROUBLE FROM A DISTANCE I AM COMPLETELY SUITED TO LISTENING TO OPPOSITE SIDES AND SEEING THE POINT IN EACH YOU COULD CALL ME A PANDER A TROUBLEMAKER A DIRECTOR A PIMP THEY'RE ALL ACCURATE HAVING THE PIMPERNEL WRITE ABOUT YOU MIGHT MAKE LIFE UNCOMFORTABLE BEING IGNORED WOULD MAKE IT UNBEARABLE THE PIMPERNEL IS THUS NOT UNLIKE HER CREATOR MS BAUMGOLD WHO STARTED THE GOSSIPY MR PEEPERS COLUMN FOR NEW YORK MAGAZINE THE WEEKLY EDITED BY HER HUSBAND EDWARD KOSNER CREATURES OF HABIT KNOPF 294 PAGES 22 COLLECTS AND EXPANDS MANY OF HER MOST AMUSING VIGNETTES RANGING FROM A HILARIOUS DESCRIPTION OF A GROTESQUE BALLET CLASS FOR VERY SOCIAL CHILDREN TO AN OLDGUARD FUNERAL WHERE THE GRIEF OF THE BEREAVED HAS BEEN COMPOSED TYPED AND EDITED BY A MASSIVE PUBLICRELATIONS MACHINE THE BEST STORY DESCRIBES THE BANKRUPTCY AUCTION OF GEORGE SOLOMON A DISCREDITED WALL STREET TRADER REMINISCENT OF JOHN GUTFREUND WHOSE FRIENDS CAVORT LIKE CANNIBALS AROUND A TASTY KILL IN FRONT OF 670 PARK DRIVERS WERE OPENING THE DOORS TO SO MANY STATION WAGONS JEEPS AND RANGE ROVERS IT LOOKED LIKE A NIGHTCLUB IN THE VELDT ALL OF GEORGE'S FRIENDS WERE HERE THEIR HEARTS STARTING TO REV TEN LOTS BEFORE THE NUMBER THEY WERE CHASING AUCTIONS WERE THE PERFECT COMPETITIVE SPORT FOR THEM TO BID AGAINST ANOTHER RICH MAN AND WIN WAS BETTER THAN STANDING AROUND IN HIP WADERS IN ALASKAN WATER ELSEWHERE MS BAUMGOLD WASTES NO MERCY DESCRIBING THAT AGING BAND OF ELBOW CRADLERS ALSO KNOWN AS WALKERS BECAUSE THEY WALK MOSTLY WIDOWS OR BORED OLDER WIVES OF MEN OTHERWISE OCCUPIED TO STULTIFYING SOCIETY EVENTS OR ON THE PHYSICALLY CORRECTED PEOPLE WHOSE FACES WERE DEVOID OF AGE BUT NOT YOUNG LIKE WET KID GLOVES SOMEONE HAS BLOWN INTO AT TIMES MS BAUMGOLD TRIES TOO HARD TO TURN HER CARTOON INTO AN APOCALYPTIC TALE OF THE DECLINE OF LATE20THCENTURY SOCIETY AS SYMBOLIZED BY THE ROTTING AND DEPREDATION OF NEW YORK CONSIDER THE MARCH OF SYMBOLS A WATER MAIN BREAKS A TAXI PLOWS THROUGH THE WINDOW OF THE ELITE LUNCH SPOT LAMPWICK READ MORTIMER'S APARTMENT BUILDINGS ARE SHEATHED IN GAUZE STORES ARE SHUTTERED LIBBY IS MUGGED BY A CHILD BEHIND THESE PORTENTS LOOMS THE GIANT PRECEDENT OF F SCOTT FITZGERALD MS BAUMGOLD'S GATSBY IS DANNY GATES A RECLUSIVE RALPH LAURENESQUE DESIGNER OF CLOTHES AND LIFESTYLES DAISY BUCHANAN IS VERONICA KAHN THE BEAUTIFUL ENIGMATIC WIFE OF A CANADIAN INDUSTRIALIST AND LIBBY DOES DUBIOUS DUTY AS NICK CARAWAY EVER READY WITH COMMENTS THAT RATHER TOO CLOSELY ECHO THOSE OF F SCOTT I KNEW SHE WAS CARELESS RUSHING AWAY ABANDONING MESSES FOR OTHERS TO CLEAN UP AFTER HER DEPARTURE AND UNFORTUNATELY ALONG THE WAY MS BAUMGOLD LETS LIBBY GET SOFTHEADED THE ACIDULOUS COLUMNIST WHOSE SERVANTS WOULD RATHER RETURN TO UNSTABLE THIRD WORLD COUNTRIES THAN REMAIN IN HER EMPLOY WHOSE NEGLECTED DAUGHTER LOATHES HER WHOSE TWO HUSBANDS TRIED TO CHOKE HER STARTS TO DEVELOP A SOCIAL CONSCIENCE AS TIRESOME AS THE PEOPLE SHE SKEWERS FOR THEIR SUDDEN INTEREST IN TIBET ENDANGERED SPECIES AND THE RAIN FORESTS THE UNBEARABLE FACT IS SHE SAYS THAT WE FAT WHITE FACES AND HANGING TWO CHINS ARE HERE TO GIVE A WHITE SOLUTION A WHITEWHITEY LIFE TO THESE SMART DARK CHILDREN WE HAVE REMOVED THEM FROM THEIR SCHOOLS TAUGHT THEM TO THINK WHITE AND WRITE WHITE AND MADE THEM ZOMBIES IN THEIR OWN NEIGHBORHOOD GREY BEINGS NEITHER HERE NOR THERE WELL MEANT BUT A SHOCKING RESPONSIBILITY WHAT BEGINS AS SHARP SOCIAL SATIRE ENDS UP BURNING ITS TARGETS IN A BONFIRE OF THE INANITIES MS KAUFMAN IS A WRITER IN NEW YORK 9307020008 930702 INTERNATIONAL JAPANESE GOVERNMENT SAYS IT'S STILL TRYING FOR TRADE FRAMEWORK TOKYO THE JAPANESE GOVERNMENT INSISTS IT IS STILL TRYING TO REACH A BROAD NEW FRAMEWORK FOR MANAGING JAPANUS TRADE BEFORE THE SUMMIT OF INDUSTRIALIZED NATIONS HERE NEXT WEEK A FOREIGN MINISTRY OFFICIAL SAID REACHING SUCH A PACT COULD BE MORE DIFFICULT IF THE US WAITS UNTIL AFTER COMING JAPANESE ELECTIONS WE ARE DISMAYED WITH SOME PUBLIC STATEMENTS COMING OUT FROM WASHINGTON THAT NEGOTIATIONS TO SET UP A FRAMEWORK FOR MANAGING BILATERAL TRADE SHOULD BE DELAYED UNTIL AFTER JULY 18 ELECTIONS THE OFFICIAL TOLD REPORTERS TODAY PRESIDENT CLINTON AND PRIME MINISTER KIICHI MIYAZAWA HAD ORIGINALLY AGREED TO ESTABLISH THE FRAMEWORK BY NEXT WEEK BUT MANY WHITE HOUSE OFFICIALS HAVE SAID IN RECENT DAYS THAT THEY WILL WAIT UNTIL AFTER JAPAN'S CURRENT POLITICAL TURMOIL DIES DOWN BUT THE FOREIGN MINISTRY OFFICIAL SAID MY PERSONAL THINKING IS THAT IF THE PRIME MINISTER WHO HAS AGREED TO SET UP THE FRAMEWORK CAN'T WORK OUT THOSE DETAILS THEN THE NEXT PRIME MINISTER WILL FIND IT MORE DIFFICULT TO DO SO THE OFFICIAL REITERATED JAPAN'S REFUSAL TO ACCEPT NUMERICAL BENCHMARKS MEASURING THE PROGRESS OF US IMPORTS INTO JAPAN AND THE REDUCTION OF JAPAN'S OVERALL TRADE SURPLUS A CENTERPIECE OF THE CLINTON TRADE STRATEGY FOR JAPAN MR CLINTON AND MR MIYAZAWA ARE SCHEDULED TO HOLD A BILATERAL SUMMIT IN TOKYO ON JULY 6 THE DAY BEFORE THE HEADS OF ALL THE GROUP OF SEVEN INDUSTRIALIZED NATIONS BEGIN THEIR THREEDAY ANNUAL SUMMIT THE FOREIGN MINISTRY OFFICIAL SAID THERE IS A POSSIBILITY MR CLINTON MAY ALSO MEET WITH MEMBERS OF NEW CONSERVATIVE OPPOSITION PARTIES THE OFFICIAL SAID THE LEADERS OF THOSE PARTIES HAVE SAID THEY WILL HONOR ANY PACT REACHED BY MR MIYAZAWA 9307020007 930702 AST SETS DEAL FOR TANDY ASSETS IRVINE CALIF AST RESEARCH INC SAID DEFINITIVE TERMS WERE SET FOR ITS PREVIOUSLY ANNOUNCED PURCHASE OF TANDY CORP'S PERSONALCOMPUTER BUSINESS THE TRANSACTION EXPECTED TO CLOSE IN SEVERAL WEEKS FOR ABOUT 175 MILLION WILL MAKE AST THE NATION'S FOURTHLARGEST PC MAKER AND REPRESENTS A RETREAT BY TANDY FROM A BUSINESS THAT IT HELPED PIONEER THE PURCHASED ASSETS INCLUDE THREE MANUFACTURING PLANTS IN TEXAS AND ONE IN SCOTLAND AS WELL AS VARIOUS TECHNOLOGIES GEARED TO PENBASED AND MULTIMEDIA COMPUTING 9307020006 930702 LEISURE & ARTS MUSIC HOLLAND FESTIVAL HIGHLIGHTS BY DONALD BLOCH AMSTERDAM THE HONOR OF OPENING THE 46TH HOLLAND FESTIVAL FELL TO PETER SELLARS WITH DEBUSSY'S PELLEAS AND MELISANDE FOR THE FIRST TIME MR SELLARS A NOISY ENFANT TERRIBLE FOR A GENERATION BY NOW WOULD BE MAKING MUSIC WITH AN ACTUAL RATTLE FIRST NAME SIMON THE CONDUCTOR FROM BIRMINGHAM ENGLAND IN A FORUM PRIOR TO FIRST NIGHT MESSRS SELLARS AND RATTLE TURNED THEMSELVES INSIDE OUT TO CONVEY THEIR ENTHUSIASM FOR DEBUSSY'S SCORE WHICH MOVES WITH THE SPEED OF HUMAN THOUGHT MR SELLARS PROMISED THE PRODUCTION WOULD PACK SURPRISES IT WILL NOT BE LIKE WATCHING A PARKING METER UNTIL TIME IS UP AND PELLEAS GETS KILLED LISTENING TO FRENCH MUSIC WILL NOT BE LIKE SUCKING ON SOME INTERMINABLE JAPANESE NOODLE THE PIECE IS FROM THE TRADITION OF MELODRAMA FOR WHICH BOTH MAETERLINCK AND DEBUSSY HAD A SWEET TOOTH WHERE MUSIC TELLS YOU THINGS ABOUT THE CHARACTERS THEY DON'T KNOW ABOUT THEMSELVES YET NOT EVEN THIS MUCH PALAVER PREPARED ME FOR THE SHOCK AS THE CURTAIN ROSE IN ABSOLUTE SILENCE OF GEORGE TSYPIN'S SET AND JAMES INGALLS'S LIGHTING A MONOLITHIC LEVITATING MALIBU BUNGALOW PART MENHIR PART CATAMARAN AN EERILY FROSTED AERIAL CATACOMB THE SELLARS/RATTLE PREAMBLE PREPARED ME FOR A BARE STAGE WHICH HAD IN FACT BEEN THEIR ORIGINAL IDEA INSTEAD GRADUALLY CUMULATIVELY THE FLICKER AND SHIMMER OF COLORED TUBES OF ILLUMINATED GASES LITTERING THE STAGE FLOOR TO DELINEATE LAND AND SEA THE DAPPLED VISUAL CHILL GENERATED BY THESE GLOWING PICKUP STICKS AND THE CELLULAR ARCHITECTURE OF ARKEL'S BROODING PALACE WITH ITS MONSTROUS SEWAGE PIPE IMPOSED A POLITICAL CONTEXT ON THE EVENING THIS WAS A LAND OF LIES PENETRATED BY NO NATURAL LIGHT WITH NO AIR AN UNLIVABLE CITY WITH HOMELESS DYING OF HUNGER QUEEN BEATRIX AND HER MINISTERS GAVE THIS AN OVATION DUTCH CRITICS GENEROUS IN PRAISE OF ORCHESTRA AND CAST WERE MORE GRUDGING ABOUT THE MISE EN SCENE AT THE RECEPTION FOLLOWING THE PREMIERE PERFORMANCE WHEN LIGHTING DESIGNER INGALLS EMERGED FROM A HUDDLE WITH THE QUEEN HIS COLLEAGUES WANTED TO KNOW WHAT THEY HAD TALKED ABOUT HER MAJESTY GAVE ME NOTES HE SAID MR SELLARS ALSO HAD A ROYAL AUDIENCE AND TOLD THE QUEEN THAT PELLEAS IS HIS LAST MEGAOPERA DON'T BELIEVE HIM SIMON SAYS SWEARING IN A WORLD REELING FROM RECESSION HIS ALLEGIANCE TO ART OF THE STREET BY THE STREET AND FOR THE STREET MEANWHILE STEVE REICH TO JUDGE FROM THE CAVE A NEW FORM OF DOCUMENTARY MUSIC VIDEO THEATER THAT TOOK HIM AND HIS WIFE VIDEO ARTIST BERYL KOROT FOUR YEARS TO COMPLETE WOULD SEEM TO BE HURTLING LIKE A GLITTERING EXPRESS TRAIN IN THE OPPOSITE DIRECTION IN THE PAST YOU COULD GIVE MR REICH A PAIR OF HANDS TO CLAP MAYBE A PIANO OR SIX AND HE COULD MOVE MOUNTAINS BUT FOR THE CAVE HE FILLS THREE ACTS WITH FOUR SINGERS FIVE GIANT VIDEO SCREENS AND 13 MUSICIANS DISTILLING INTO 165 MINUTES SOME 150 HOURS OF INTERVIEWS WITH ISRAELI JEWS PALESTINIAN ARABS AND AMERICANS ALL ASKED WHO FOR YOU IS ABRAHAM SARAH HAGAR ISHMAEL ISAAC THE CAVE WAS INSPIRED BY THE REAL CAVE CALLED MACHPELA IN THE ISRAELIARAB CITY OF HEBRON LEGENDARY SITE OF ABRAHAM'S GRAVE A HOLY SPOT FREQUENTED FOR WORSHIP TODAY BY BOTH JEWS AND MUSLIMS THE PRODUCTION IS BASED ON AN ORCHESTRATION OF DOCUMENTARY MATERIALS DIGITAL SAMPLINGS OF RECORDED SPEECH AND VIDEO EXTRACTS MANIPULATED MUSICALLY IN THIS CONTEXT VIOLINS CAN SOUND LIKE BOWED VOCAL CHORDS THE WORK'S VISUAL IMAGERY TALKING HEADS FLASHED SIMULTANEOUSLY WITH ENLARGED DETAILS FROM THE SPEAKERS' PORTRAITS IS THE VISUAL EQUIVALENT OF SOUND BITES GRABBED IMAGES IF MR SELLARS FREQUENTLY SEEMS BENT ON INFLICTING POLITICS ON A PRIVATE TEXT MR REICH AND MS KOROT HAVE ELECTED TO TAKE A POLITICALLY LOADED SUBJECT AND PERSONALIZE IT WE'RE NOT OUT TO SOLVE THE MIDDLE EAST PROBLEM THE CITATIONS FROM BIBLE AND KORAN ARE RIVETING THE CONSCIOUS CHOICE OF RIGIDLY SEGREGATING SPEAKERS BY CULTURE IN SEPARATE ACTS HOWEVER AND OF NEVER ALLOWING TWO DIFFERENT FACES TO APPEAR ON DIFFERENT SCREENS AT THE SAME TIME OR TWO VOICES IN THE MUSIC MAY HEIGHTEN FOCUS AS MR REICH INTENDS BUT IT WORKS COUNTERDRAMATICALLY DESPITE PROGRAM NOTES INDIVIDUAL INTERVIEWEES FLIT BY AND NEVER ACHIEVE IDENTITY AS CHARACTERS EITHER IT IS AT TIMES EXTREMELY DISCOMFORTING TO SEE THEM INTERRUPTED IN MIDSENTENCE WITHOUT THEIR BEING AWARE OF IT YOU CAN STILL ENJOY THE MUSIC AND VIDEOS FOR THEMSELVES THOUGH AND HOW UNCANNILY THEY MESH MR BLOCH IS A NOVELIST IN AMSTERDAM 9307020005 930702 ECONOMY ROSTENKOWSKI SEES BATTLE WITH SENATE ON DEFICITREDUCTION COMPROMISE BILL BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SENATE DEMOCRATIC LEADERS SAY COMING NEGOTIATIONS WITH THE HOUSE MUST PRODUCE SOMETHING CLOSE TO THEIR VERSION OF A DEFICITREDUCTION BILL VEXING THE CHIEF SPONSOR OF THE HOUSEPASSED PACKAGE I MIGHT JUST MAKE THE OBSERVATION THAT THIS IS GOING TO BE A LONG SUMMER SAID HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI THE CHICAGO DEMOCRAT MADE THE COMMENT AS HE EMERGED YESTERDAY FROM A PRIVATE CAPITOL MEETING OF HOUSE AND SENATE LEADERS WITH TOP CLINTON ADMINISTRATION OFFICIALS THE SESSION WAS CALLED TO DISCUSS THE WORKINGS OF A HOUSESENATE CONFERENCE COMMITTEE WHICH WILL BEGIN MEETING AFTER THE WEEKLONG JULY 4 RECESS TO REACH A COMPROMISE VERSION OF PRESIDENT CLINTON'S ECONOMIC PROGRAM THE SENATE PASSED ITS BILL LAST WEEK ONLY AFTER VICE PRESIDENT AL GORE BROKE A TIE VOTE AND DEMOCRATIC LEADERS THERE ARGUE THAT BECAUSE OF THE CLOSENESS OF THE VOTE AND THE SENATE'S PROCEDURAL HURDLES A COMPROMISE THAT DEPARTS MUCH FROM THEIR BILL WON'T PASS IN THAT CHAMBER MEANWHILE IN THE HOUSE WHICH ALSO PASSED ITS BILL BY A SLIM MARGIN PARTY LEADERS ARE EQUALLY ADAMANT THAT A COMPROMISE MUST HAVE PARTS OF THEIR MEASURE THAT THE SENATE DROPPED OR SCALED BACK REP ROSTENKOWSKI THE LEAD HOUSE NEGOTIATOR SAID THAT INCLUDES TAX INCENTIVES FOR INVESTMENTS IN DEPRESSED EMPOWERMENT ZONES THOSE ZONES ARE A KEY DEMAND OF THE CONGRESSIONAL BLACK CAUCUS WHICH GAVE ALL 38 OF ITS DEMOCRATIC VOTES TO THE HOUSE BILL BUT THE SENATE BILL HAS NO PROVISION FOR THEM THE CHAIRMAN ALSO CITED THE HOUSE'S PROPOSED TAX CREDIT FOR POOR WORKERS AND A NEW WRITEOFF FOR BUSINESSES' INTANGIBLE ASSETS ACQUIRED IN TAKEOVERS THE HOUSE'S PROVISIONS ARE MORE GENEROUS THAN THE SENATE'S THE SENATORS CAME TO THE SESSION WITH A DOCUMENT TO BUTTRESS THEIR ARGUMENT THAT THE SENATE'S PECULIAR RULES IN THE HANDS OF REPUBLICAN OPPONENTS ARE AN OBSTACLE TO CONSIDERING CERTAIN ISSUES IMPORTANT TO THE HOUSE THOSE INCLUDE HOUSE PROVISIONS ON EMPOWERMENT ZONES THE TAX CREDIT FOR THE WORKING POOR EXPANDING FOOD STAMPS AIDING FAMILIES TORN BY DRUG ABUSE CAPPING SPENDING ON SOCALLED ENTITLEMENT PROGRAMS AND THE SOCALLED ZOE BAIRD PROVISION RAISING THE THRESHOLD FOR INCOME THAT CAN BE PAID TO DOMESTIC WORKERS BEFORE SOCIAL SECURITY TAXES ARE DUE THE NEGOTIATORS' FLEXIBILITY TO APPROVE INVESTMENT INCENTIVES SUCH AS THE EMPOWERMENT ZONES AND OTHER BUSINESS TAX PROVISIONS DEPENDS ON THE AMOUNT OF REVENUES RAISED IN THE BILLS SO A KEY QUESTION FOR THE CONFEREES IS THE SIZE OF ANY ENERGY TAX THEY WORK OUT THE HOUSE BILL HAS MR CLINTON'S PROPOSED BROADBASED ENERGY TAX WHICH WOULD RAISE 715 BILLION OVER FIVE YEARS WHILE THE SENATE BILL HAS A FUELS TAX INCREASE THAT WOULD RAISE 50 BILLION LESS MANY HOUSE DEMOCRATS ARE URGING THAT THE FINAL BILL INCLUDE NO ENERGY TAXES OR AT LEAST NOT MR CLINTON'S PROPOSAL BUT YESTERDAY HOUSE SPEAKER THOMAS FOLEY D WASH SAID I WOULD EXPECT THERE WOULD BE SOME ENERGY TAX IN THE FINAL BILL WHILE SENATE MAJORITY LEADER GEORGE MITCHELL OF MAINE NODDED IN AGREEMENT THE TWO LEADERS PREDICTED A COMPROMISE WILL PASS CONGRESS BEFORE LAWMAKERS LEAVE FOR THEIR AUGUST RECESS SCHEDULED TO BEGIN AUG 6 THE HIGHLEVEL ADMINISTRATION DELEGATION AT YESTERDAY'S LEADERSHIP MEETING ILLUSTRATED THE IMPORTANCE OF THE COMING TALKS TO THE PRESIDENT'S PROGRAM THE GROUP INCLUDED TREASURY SECRETARY LLOYD BENTSEN WHITE HOUSE CHIEF OF STAFF THOMAS MCLARTY AND BUDGET DIRECTOR LEON PANETTA THEY LATER ATTENDED A SESSION TO DISCUSS THE DEFICITREDUCTION EFFORT WITH 10 MODERATETOCONSERVATIVE DEMOCRATIC SENATORS MR ROSTENKOWSKI MEANWHILE SENT A MESSAGE HE'S SOUNDED BEFORE SAYING WE'RE GOING TO HAVE TO GET MORE DIRECTION FROM THE WHITE HOUSE AT YESTERDAY'S MEETING AS IN PAST WEEKS ADMINISTRATION OFFICIALS SPOKE OF THE BROAD PRINCIPLES THAT THE PRESIDENT WANTS TO SEE IN THE FINAL BILL 500 BILLION IN DEFICIT REDUCTION OVER FIVE YEARS A ROUGHLY EQUAL SHARE OF TAX INCREASES AND SPENDING CUTS INVESTMENT INCENTIVES AND TAXATION THAT HITS HIGHERINCOME TAXPAYERS HARDER 9307020003 930702 ENTERPRISE LARGEGROUP SUITS INCREASE AMONG IRKED FRANCHISEES INDIVIDUALS BAND TOGETHER AGAINST HIGH COST OF ASSERTING RIGHTS BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL ROGER C GROOMS SAYS HE WILL NEVER FORGET MEETING ROY W TITUS THE PRESIDENT OF SPEEDY SIGNARAMA USA INC AND ITS PARENT MR GROOMS AND HIS TWIN BROTHER OPENED A SIGNARAMA FRANCHISE IN SPRINGFIELD VA FOUR YEARS AGO AFTER VISITING THE FARMINGDALE NY HEADQUARTERS OF MINUTEMAN PRESS INTERNATIONAL INC A PRINTSHOP FRANCHISER THAT OWNS SIGNARAMA HE QUOTES MR TITUS AS SAYING I WOULDN'T WANT TO SAY ANYTHING THAT WASN'T EXACTLY RIGHT OR YOU COULD SUE IF THESE WERE MR TITUS'S WORDS THEY MAY BE HAUNTING HIM NOW IN A CASE APPROACHING TRIAL IN FEDERAL COURT IN MIAMI THE OWNERS AND FORMER OWNERS OF 68 SIGNARAMA FRANCHISES ACCUSE MR TITUS AND HIS COMPANIES OF SAYING LOTS OF THINGS THAT WEREN'T EXACTLY RIGHT ALLEGING FRAUD RACKETEERING AND OTHER MISDEEDS THESE PEOPLE MAINTAIN THEY WERE GRIEVOUSLY MISLED BY SIGNARAMA'S STANDARD PITCH MOST SIGNARAMA UNITS LOSE MONEY CONSISTENTLY ACCORDING TO COURT CHARGES BY FRANCHISEES WHO SAY THEY WERE PROMISED HANDSOME INCOMES EACH SEEKS TO RECOVER ALLEGED DAMAGES INDIVIDUAL CLAIMS RUN INTO THE HUNDREDS OF THOUSANDS OF DOLLARS THE RAPID GROWTH OF FRANCHISING HAS LED TO A RISING TIDE OF LEGAL DISPUTES OFTEN OVER FRANCHISEES' ALLEGATIONS OF BROKEN PROMISES BY FRANCHISERS BUT RARELY HAS SUCH A LARGE SHARE OF A CHAIN'S FRANCHISEES BANDED TOGETHER FOR LEGAL ACTION SIGNARAMA'S FOES IN COURT SAY THEY REPRESENT MORE THAN ONETHIRD OF ALL THE FRANCHISEES THAT THE CHAIN BASED IN PALM BEACH GARDENS FLA HAS EVER HAD THOUGH STILL UNUSUAL SUCH SUITS COULD WELL BECOME COMMONPLACE AS FRANCHISEES GROPE FOR NEW WEAPONS TO ASSERT THEIR RIGHTS SAYS MARIO L HERMAN A WASHINGTON ATTORNEY FOR SIGNARAMA FRANCHISEES MR HERMAN SAYS A LAWSUIT USUALLY IS TOO EXPENSIVE FOR AN INDIVIDUAL FRANCHISEE AND COURTS ARE OFTEN RELUCTANT TO CERTIFY CLASSACTIONS COMMONLY FILED BY ONE PLAINTIFF OR A SMALL GROUP OF PLAINTIFFS ON BEHALF OF A WHOLE CLASS OF SIMILARLY SITUATED PARTIES THUS THE AGGRIEVED FRANCHISEES' BEST BET INCREASINGLY WILL BE THE LARGEGROUP SUIT MR HERMAN PREDICTS GROUP SUITS MAY POSE A BIGGER DANGER TO FRANCHISERS THAN INDIVIDUAL SUITS I'D RATHER GO ONEONONE ANY DAY CONFIDES ONE EAST COAST LAWYER FOR FRANCHISERS MOST INDIVIDUAL FRANCHISEES DON'T HAVE THE RESOURCES TO FIGHT VERY HARD AT THE HEART OF THE SIGNARAMA DISPUTE IS MONEY THAT ALLEGEDLY NEVER MATERIALIZED PROJECTIONS IN EARNINGS THAT SPEEDY SIGNARAMA TOLD US WE'D ACHIEVE WE NEVER EVEN GOT CLOSE TO SAYS THOMAS I MCDANNOLD WHO OPENED A FRANCHISE IN SANTA CRUZ CALIF LATE IN 1989 HE CLAIMS THAT SIGNARAMA TOLD HIM TO EXPECT SALES OF 25000 A MONTH ONETHIRD OF WHICH WOULD BE PRETAX PROFIT BUT MONTHLY SALES CONSISTENTLY FELL BELOW 12000 RESULTING IN OPERATING LOSSES HE SAYS MR MCDANNOLD AND OTHERS SAY FRANCHISEES PERFORM LITTLE INHOUSE WORK OTHER THAN MAKING VINYL SIGNS OFTEN THEY NEED TO STRIKE PROFITLESS DEALS WITH OUTSIDERS FOR OTHER WORK SUCH AS NEON SIGNS MANY PEOPLE SAY THEIR LIVES NOT JUST THEIR FINANCES WERE SHAKEN VIVIAN PAYNE THE FORMER OWNER OF A SIGNARAMA FRANCHISE IN CONCORD CALIF SAYS I FEEL LIKE I WAS RAPED SHE CLAIMS TO HAVE LOST A LOT OF MY STRENGTH FOR FACING LIFE'S CHALLENGES MR MCDANNOLD THE FORMER SANTA CRUZ FRANCHISEE SAYS I'M DEPRESSED I'M ANGRY HE SAYS THE FRANCHISER TOOK US ABOUT AS BAD AS PEOPLE CAN BE TAKEN MR MCDANNOLD WHO CALLS HIS SITUATION SICKENING PLANS TO SELL HIS HOUSE TO RAISE MORE MONEY FOR HIS BUSINESS NOW AN INDEPENDENT SIGN SHOP CHARLES P KOEGLE II A FORMER PARTNER IN AN ORANGE CALIF SIGNARAMA FRANCHISE EVEN SAYS STRESS RELATED TO THE FRANCHISE PARTLY CAUSED HIS FATHER'S DEATH HE SAYS HIS FATHER CARY HAD TAKEN A SECOND MORTGAGE ON HIS HOUSE TO HELP PAY FOR THE FRANCHISE WHEN IT FAILED HE WAS FORCED TO SELL THE HOME ONLY HOURS AFTER CLEANING OUT THE GARAGE TO PREPARE FOR THE SALE THE ELDER MR KOEGLE DIED OF A HEART ATTACK HIS SON SAYS TOP OFFICIALS OF SIGNARAMA AND MINUTEMAN DIDN'T RETURN TELEPHONE CALLS FOR THIS ARTICLE IN COURT PAPERS IN THE MIAMI CASE THE COMPANIES HAVE ASKED JUDGE STANLEY MARCUS TO DISMISS MOST OF THE FRANCHISEES' CHARGES WITHOUT A TRIAL THE COMPANIES SAY SIGNARAMA BUYERS SIGNED CONTRACTS THAT CONTAINED DISCLAIMERS ABOUT PROSPECTIVE SALES AND PROFIT THE BUYERS DIDN'T RELY ON THE ALLEGED MISREPRESENTATIONS WHEN THEY SIGNED THE CONTRACTS THE COMPANIES ARGUE THEY ADD THAT THE BUYERS CANNOT SHOW THAT THE ALLEGED MISREPRESENTATIONS ARE ANYTHING OTHER THAN NONACTIONABLE STATEMENTS OF OPINION OR PUFFING SIGNARAMA ALSO HAS SUED THE LAWYERS WHO ORGANIZED THE GROUP SUIT ALLEGING THAT THEY INCITED A FORMER EXECUTIVE TO BREACH A SECRECY AGREEMENT WITH THE COMPANY THE LAWYERS DENY WRONGDOING AND CLAIM THE SUIT NOW PART OF THE MIAMI LITIGATION IS AN INTIMIDATION TACTIC TECHNICALLY SIGNARAMA FIRED THE FIRST SHOT IN THE LEGAL BATTLE IN 1990 IT SUED MR GROOMS AND HIS BROTHERWHO HAD BEEN TALKING WITH OTHER DISGRUNTLED FRANCHISEES ABOUT POSSIBLE LEGAL ACTION AGAINST THE FRANCHISER SIGNARAMA ALLEGED BREACHOFCONTRACT AND OTHER MISDEEDS INCLUDING DEFAMATION THE GROOMSES COUNTERSUED FOR FRAUD THEIR COMPLAINT LATER WAS AMENDED TO INCLUDE MORE CHARGES BY MANY MORE FRANCHISEES A PRETRIAL CONFERENCE IS EXPECTED AUG 26 THE FRANCHISERS ARE EXPECTED TO ANSWER THE FTC CHARGES IN A COURT FILING BY TUESDAY BARRY HELLER THE FRANCHISERS' WASHINGTON ATTORNEY IN THE CASE DECLINED TO COMMENT SOME BUYERS SAY A MAJOR SELLING POINT FOR THE FRANCHISE WAS THE INVOLVEMENT OF BIG MINNESOTA MINING & MANUFACTURING CO WHICH PROVIDES SIGNMAKING EQUIPMENT FOR SIGNARAMA FRANCHISEES IN THE MIAMI LITIGATION SIGNARAMA IS ACCUSED OF MISREPRESENTING ITSELF AS A JOINT VENTURE BETWEEN MINUTEMAN AND 3M A SPOKESMAN FOR 3M WHICH ISN'T A PARTY IN THE LITIGATION DECLINED TO COMMENT 9307020002 930702 PROGRAM TRADING NEW YORK PROGRAM TRADING FOR THE WEEK ENDED JUNE 25 ACCOUNTED FOR 156 OR AN AVERAGE 387 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 304 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 383 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 502 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 66 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 289 WAS FOR THEIR CUSTOMERS AN ADDITIONAL 51 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES MORGAN STANLEY SALOMON BROTHERS AND WALSH GREENWOOD EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE THOMAS WILLIAMS DID ALL OF ITS PROGRAM TRADING FOR ITS CUSTOMERS 9307020001 930702 GM SAYS PLANT IN FINLAND TO MAKE 6000 AUTOMOBILES BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL BONN GENERAL MOTORS CORP PROMISED A GERMAN COURT IT WILL PRODUCE 6000 CARS IN FINLAND OVER THE NEXT 10 MONTHS ADDING A WRINKLE TO THE LEGAL TUSSLE BETWEEN THE US CAR MAKER AND ITS FORMER FINNISH PARTNER VALMET GM EUROPE INHERITED A PRODUCTION AGREEMENT WITH THE FINNISH INDUSTRIAL GROUP WHEN IT BOUGHT 50 OF SWEDEN'S SAAB AUTOMOBILE AB IN 1990 SAABSCANIA AB HAS A 50 STAKE IN SAAB AUTOMOBILE GM USED VALMET'S PLANT IN UUSIKAUPUNKI FINLAND TO ASSEMBLE OPEL CALIBRA MODELS IN 1991 AND 1992 BUT WITH THE EUROPEAN CAR MARKET IN FREE FALL GM TOLD ITS FINNISH PARTNER IN NOVEMBER IT WAS CONCENTRATING ALL CALIBRA PRODUCTION AT THE COMPANY'S PLANT IN RUESSELSHEIM GERMANY IN 1993 VALMET WHICH IS MAJORITY OWNED BY THE FINNISH STATE TOOK GM TO COURT IN GERMANY AND WON A TEMPORARY INJUNCTION FORCING GM TO RESTART PRODUCTION IN FINLAND IN MAY THE AGREEMENT FORGED THIS WEEK BETWEEN GM AND VALMET LIFTS THE INJUNCTION WHICH REQUIRED GM TO PRODUCE 30 OF ITS CALIBRAS IN FINLAND BUT REPLACES IT WITH AN AGREEMENT BY GM TO PRODUCE 6000 CARS AT THE FACTORY FROM JUNE 1 1993 TO MARCH 31 1994 GM ESTIMATES IT WILL SELL ABOUT 32000 CALIBRAS THIS YEAR COMPARED WITH 56500 IN 1992 FINNISH PRODUCTION SEEMED ATTRACTIVE TO GM WHEN IT LINKED UP WITH SAAB WHICH WAS THEN A 50 JOINTVENTURE PARTNER WITH VALMET AT THE TIME GM WAS STRUGGLING TO MEET DEMAND FOR ITS POPULAR VECTRA MODEL BY SHIFTING A CHUNK OF CALIBRA PRODUCTION TO THE FINNISH PLANT GM WANTED TO FREE UP CAPACITY IN RUESSELSHEIM FOR MORE VECTRA PRODUCTION BUT WITH GM NOW RUSHING TO TRIM PRODUCTION THE FINNISH PLANT BECAME AN OBVIOUS TARGET ACCORDING TO GM OFFICIALS IT COSTS THE COMPANY 5000 GERMAN MARKS 2944 MORE FOR EACH CAR TO PRODUCE A CALIBRA IN FINLAND THAN IN RUESSELSHEIM 9307010179 930701 ITT HARTFORD UNIT SUED SCHEME INVOLVED WORKERLEASING FIRM AUSTIN TEXAS REGULATORS IN TEXAS FILED SUIT AGAINST HARTFORD LIFE & ACCIDENT INSURANCE CO ACCUSING IT OF PARTICIPATING IN A FRAUDULENT SCHEME BY AN EMPLOYEELEASING FIRM THAT LEFT THOUSANDS OF WORKERS WITHOUT HEALTH INSURANCE ACCORDING TO THE TEXAS ATTORNEY GENERAL'S OFFICE WHICH JOINED WITH STATE INSURANCE REGULATORS TO FILE THE LAWSUIT WEDNESDAY IN A DALLAS FEDERAL COURT THIS IS THE FIRST FULLSCALE LEGAL ACTION AGAINST A SOCALLED THIRDPARTY ADMINISTRATOR FOR AN EMPLOYEELEASING COMPANY HARTFORD A UNIT OF THE ITT HARTFORD INSURANCE GROUP ADMINISTERED INSURANCE CLAIMS FOR AMERICAN WORKFORCE A FAILED EMPLOYEELEASING COMPANY IN DALLAS IF THE SUIT IS SUCCESSFUL ATTORNEYS SAY THIRDPARTY ADMINISTRATORS WOULD FIND THEMSELVES LIABLE FOR MILLIONS IN CLAIMS UNDER STATE INSURANCE LAWS EMPLOYEELEASING COMPANIES HIRE WORKERS OF SEVERAL SMALL BUSINESSES AND LEASE THEM BACK TO THE ORIGINAL EMPLOYER THEY CAN TAKE ADVANTAGE OF LARGEGROUP INSURANCE DISCOUNTS ACCORDING TO THE SUIT A HARTFORD GROUP SALES REPRESENTATIVE IN DALLAS ALLEGEDLY AUTHORIZED AMERICAN WORKFORCE WHICH FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION IN 1991 TO TELL PROSPECTIVE CLIENTS IT WAS FULLY INSURED WITH HARTFORD BUT THE SUIT ALLEGES AMERICAN WORKFORCE FAILED TO SET UP RESERVES TO COVER INSURANCE CLAIMS ABOUT 7 MILLION IN UNPAID CLAIMS ARE OUTSTANDING AND ABOUT 5000 WORKERS WERE AFFECTED THE SUIT CLAIMS IN A STATEMENT OFFICIALS AT ITT HARTFORD A UNIT OF ITT CORP SAID IT WAS NOT LIABLE FOR PAYMENT OF HEALTHCARE CLAIMS OF AMERICAN WORKFORCE EMPLOYEES BUT HAD OFFERED TO PROCESS UNPAID CLAIMS PROVIDED THE BANKRUPTCY ESTATE OF AMERICAN WORKFORCE ALSO CONTRIBUTED THE COMPANY SAID THE ATTORNEY GENERAL'S OFFICE REJECTED ITS OFFER 9307010177 930701 BUSINESS BRIEF SUNRISE MEDICAL AGREES TO PURCHASE DEVILBISS HEALTH IN 71 MILLION DEAL TORRANCE CALIF SUNRISE MEDICAL INC A MAKER OF WHEELCHAIRS AND OTHER MEDICAL AND REHABILITATION EQUIPMENT SAID IT SIGNED A 71 MILLION CONTRACT TO BUY DEVILBISS HEALTH CARE INC A SUPPLIER OF HOMEUSE RESPIRATORY PRODUCTS THE DEAL INCLUDES 37 MILLION IN CASH AND 34 MILLION IN SUNRISE STOCK THE COMPANY ALSO WILL ASSUME 59 MILLION IN DEBT TO BE PAID OFF AT THE EXPECTED JULY 30 CLOSING DATE DEVILBISS BASED IN SOMERSET PA HAD ESTIMATED REVENUE OF 95 MILLION FOR THE CURRENT FISCAL YEAR ENDING JULY 30 SAID RICHARD H CHANDLER SUNRISE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SUNRISE'S SALES FOR ITS FISCAL YEAR ENDED LAST JULY 3 WERE 2439 MILLION MR CHANDLER DECLINED TO PROJECT SALES FIGURES FOR SUNRISE'S CURRENT FISCAL YEAR ENDING JULY 2 THE COMBINED REVENUES WILL EXCEED 400 MILLION AND DEVILBISS WILL REPRESENT ABOUT 23 OF THE TOTAL COMPANY AFTER THE ACQUISITION MR CHANDLER SAID THE CLOSING IS SUBJECT TO ROUTINE GOVERNMENT APPROVALS AND THE NORMAL CONDITIONS OF CLOSING HE SAID MANAGEMENT AT DEVILBISS WHICH IS CLOSELY HELD WILL REMAIN IN PLACE WITH ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER NORMAN D ORR BECOMING PRESIDENT OF SUNRISE'S NEW DEVILBISS HEALTH CARE DIVISION MR CHANDLER SAID WE'RE NOT ANTICIPATING ANY LAYOFFS HE SAID MR CHANDLER SAID THE PURCHASE WAS PART OF SUNRISE'S STRATEGIC INTENT TO BECOME THE GLOBAL MARKET LEADER IN MEDICAL PRODUCTS USED IN THE HOME DEVILBISS MAKES OXYGEN CONCENTRATORS WHICH SUPPLY ENRICHED OXYGEN TO PEOPLE WITH LUNG PROBLEMS AS WELL AS NEBULIZERS WHICH DISPENSE MEDICINE IN THE FORM OF AIRBORNE PARTICLES AND SLEEP THERAPY PRODUCTS FOR PEOPLE AT RISK FOR DEVELOPING SLEEP APNEA THE WORLD MARKET FOR THE THREE PRODUCTS IS 500 MILLION OF WHICH DEVILBISS HAS ABOUT A 19 SHARE MR CHANDLER SAID IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE SUNRISE CLOSED AT 2425 UP 75 CENTS 9307010176 930701 WHO'S NEWS CHEVRON CORP CHEVRON CORP SAN FRANCISCO HARVEY D HINMAN 53 YEARS OLD WAS ELECTED A VICE PRESIDENT HE ALSO WILL BECOME GENERAL COUNSEL AT THE END OF OCTOBER WHEN CHARLES B RENFREW VICE PRESIDENT LAW REACHES THE COMPANY'S MANDATORY RETIREMENT AGE OF 65 MR HINMAN WAS PREVIOUSLY WITH THE LAW FIRM OF PILLSBURY MADISON & SUTRO WHERE HE HAD OVERALL RESPONSIBILITY FOR THE FIRM'S WORK FOR THE PETROLEUM COMPANY 9307010175 930701 CANADA AUCTIONS BONDS THE AVERAGE BID WAS 6355 FOR A PRICE EQUIVALENT OF 100392 PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9307010174 930701 COCACOLA ENTERPRISES PURCHASE ATLANTA COCACOLA ENTERPRISES INC SAID IT COMPLETED AN ACQUISITION OF TWO BOTTLING OPERATIONS IN EUROPE AND IN TENNESSEE FROM COCACOLA CO FOR ABOUT 366 MILLION 9307010173 930701 COMPUSA SALES UP 63 DALLAS COMPUSA INC SAID SALES INCREASED 63 FOR ITS FISCAL FOURTH QUARTER ENDED SATURDAY TO 3872 MILLION FROM 2371 MILLION IN THE YEAREARLIER PERIOD THE COMPANY WHICH OPERATES 48 COMPUTER SUPERSTORES SAID SALES AT STORES OPEN FOR AT LEAST A YEAR CLIMBED 25 FOR THE FISCAL YEAR SALES ROSE 64 TO 134 BILLION FROM 8208 MILLION SAMESTORE SALES WERE UP 21 9307010172 930701 CANADIAN OUTPUT UNCHANGED OTTAWA CANADA'S GROSS DOMESTIC PRODUCT WAS UNCHANGED IN APRIL FROM MARCH STATISTICS CANADA A GOVERNMENT AGENCY SAID GDP THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED BY THE NATION ROSE 06 IN MARCH AND 05 IN FEBRUARY 9307010170 930701 TECHNOLOGY BRISTOLMYERS SQUIBB INVESTMENT NEW YORK BRISTOLMYERS SQUIBB CO SAID IT WILL INVEST MORE THAN 10 MILLION IN A THREEYEAR RESEARCH AND DEVELOPMENT PROJECT WITH IXSYS INC A SAN DIEGO DEVELOPER OF PEPTIDES AND HUMAN MONOCLONAL ANTIBODIES FOR USE AS PHARMACEUTICAL PRODUCTS THE INVESTMENT OF WHICH 6 MILLION HAS BEEN PAID WILL GIVE HEALTHCARE COMPANY BRISTOLMYERS A SLIGHTLY MORE THAN 9 EQUITY INTEREST IN IXSYS THE RESEARCH WILL FOCUS ON USE OF MONOCLONAL ANTIBODIES FOR TREATING SOLID TUMORS 9307010169 930701 INTERNATIONAL VOLKSWAGEN'S AUDI HAS DEFICIT INGOLSTADT GERMANY VOLKSWAGEN AG'S AUDI SUBSIDIARY PLUNGED INTO THE RED IN THE FIRST HALF OF 1993 AS SALES AND PRODUCTION PLUMMETED AUDI POSTED A PRETAX LOSS OF 198 MILLION MARKS 1173 MILLION COMPARED WITH PROFIT OF 315 MILLION MARKS A YEAR EARLIER SALES FELL 29 TO 605 BILLION MARKS FROM 856 BILLION 9307010168 930701 INTERNATIONAL BRIEF FIAT SPA AGNELLI SAYS OPERATING LOSS MAY BE 6511 MILLION FOR '93 GIOVANNI AGNELLI CHAIRMAN OF FIAT SPA SAID THE ITALIAN AUTO MAKER COULD POST AN OPERATING LOSS OF 1 TRILLION LIRE 6511 MILLION THIS YEAR AS ANALYSTS HAVE ESTIMATED MR AGNELLI AT A NEWS CONFERENCE FOLLOWING THE COMPANY'S ANNUAL MEETING ESSENTIALLY SAID HE AGREED WITH THE ANALYSTS' ESTIMATES HOWEVER HE NOTED THAT THE FIGURE COULD BE ATTENUATED BY ASSET SALES FIAT IS PLANNING FOR SOME 2 TRILLION TO 3 TRILLION LIRE AT THE ANNUAL MEETING MR AGNELLI GAVE A GLOOMY OUTLOOK SAYING THAT RESULTS REPORTED BY THE GROUP'S ORDINARY BUSINESS ARE GOING TO GET WORSE BECAUSE OF THE SLUMP IN DEMAND BUT THE DOWNTURN HE NOTED IS IN LINE WITH WHAT IS HAPPENING TO ALL EUROPEAN MANUFACTURERS IN OUR SECTOR ALSO AT THE MEETING ELABORATING ON PREVIOUS DISCLOSURES OF BRIBES PAID TO POLITICAL PARTIES MR AGNELLI SAID FIAT PAID BRIBES AMOUNTING TO JUST 024 OF THE COMPANY'S SHAREHOLDER EQUITY CONSOLIDATED SHAREHOLDER EQUITY STOOD AT 1617 TRILLION LIRE AT THE END OF 1992 9307010167 930701 INTERNATIONAL JAPANESE VIDEOCASSETTE EXPORTS TOKYO JAPANESE EXPORTS OF VIDEOCASETTE RECORDERS IN MAY FELL 17 FROM A YEAR EARLIER TO 11 MILLION UNITS THE ELECTRONICS INDUSTRY ASSOCIATION OF JAPAN SAID IMPORTS OF VCRS MEANWHILE CLIMBED 40 FROM A YEAR EARLIER TO 55000 UNITS 9307010165 930701 POLITICS & POLICY HOUSE APPROVES RISE IN SOCIAL SPENDING EASES CURBS A BIT ON MEDICAID ABORTIONS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE APPROVED MAJOR SPENDING INCREASES FOR LABOR AND HUMANSERVICE PROGRAMS WHILE STILL SIGNALING STRONG SUPPORT FOR RESTRICTIONS ON FEDERAL FINANCING OF ABORTIONS FOR POOR WOMEN COVERED UNDER MEDICAID BY A 255178 MARGIN LAWMAKERS ENDORSED A MODEST CHANGE IN THE LAW TO PERMIT FEDERAL FUNDING IN CASES OF RAPE AND INCEST AS WELL AS WHEN THE MOTHER'S LIFE IS IN DANGER REPUBLICANS VOTED BY A MARGIN OF ALMOST 101 TO SUPPORT THE RESTRICTIONS THE OUTCOME SHOWS THE HURDLES FACED BY THE CLINTON ADMINISTRATION IN DEALING WITH THE ABORTION ISSUE IN THE BROADER CONTEXT OF HEALTHCARE OVERHAUL BEYOND THE NUMBERS THE EMOTIONAL TONE OF THE DEBATE ILLUSTRATED THE DIVISIVENESS OF THE ISSUE WHICH SPARKED BITTER EXCHANGES BETWEEN REPUBLICAN CONSERVATIVES AND DEMOCRATIC BLACK WOMEN WHO SEE THEMSELVES AS SPOKESWOMEN FOR MEDICAID CONSTITUENTS GIVEN THE INFLUX OF NEW BLACK LAWMAKERS IN CONGRESS THE DEBATE'S RACIAL OVERTONES WERE MORE STARK THAN IN THE PAST REP HENRY HYDE R ILL A LEADING OPPONENT OF ABORTION PROVOKED HISSES WHEN HE SUGGESTED THAT ABORTIONS WERE FOISTED ON POOR WOMEN AS A MEANS TO REFINE THE BREED I'M OFFENDED BY THAT KIND OF DEBATE DECLARED REP CARDISS COLLINS BUT AN UNREPENTANT MR HYDE CHALLENGED THE CHICAGO DEMOCRAT SAYING HE COULD DIRECT HER TO A FEW MINISTERS WHO WILL TELL HER JUST WHAT GOES ON IN HER COMMUNITY THE REMARKS TOUCHED OFF A STORM ON THE FLOOR AND THE DEMOCRATIC LEADERSHIP FOUND ITSELF ON THE DEFENSIVE AS IT SOUGHT TO RESTORE STRUCTURE TO THE PROCEEDINGS WHEN MR HYDE CROSSED THE FLOOR TO MAKE PEACE WITH MS COLLINS HE WAS MET BY OTHER ANGRY BLACK WOMEN LAWMAKERS AND THE HARSH FEELINGS IGNITED INTO DISPUTES AMONG LIBERAL DEMOCRATS BY CONTRAST WITH THIS SPECTACLE THE UNDERLYING BILL CARRYING THE MEDICAID RESTRICTIONS REPRESENTS THE CORE OF THE ADMINISTRATION'S PROMISED COMMITMENT TO SOCIAL PROGRAMS IMPORTANT TO MAJOR DEMOCRATIC CONSTITUENCIES AND ALTHOUGH FISCAL PRESSURES FORCED SIGNIFICANT CUTS FROM MR CLINTON'S REQUESTS THE MEASURE PROVIDES A MORE THAN 75 INCREASE IN DISCRETIONARY FUNDING FOR THE COMBINED BUDGETS OF THE DEPARTMENTS OF LABOR EDUCATION AND HEALTH AND HUMAN SERVICES ASSISTANCE FOR DISLOCATED WORKERS WOULD MORE THAN DOUBLE TO 118 BILLION AND HEAD START FUNDING WOULD GROW 500 MILLION TO NEARLY 33 BILLION IN THE FISCAL YEAR BEGINNING OCT 1 THE BILL PROVIDES ONLY A FRACTION OF THE 660 MILLION SOUGHT BY THE PRESIDENT FOR VARIOUS EDUCATION REFORMS BUT SIGNIFICANT NEW MONEY IS PROVIDED FOR IMMUNIZATION PROGRAMS AS WELL AS THE FEDERAL AID TO STATE AND LOCAL GOVERNMENTS STRUGGLING WITH THE COSTS OF TREATING AIDS PATIENTS ADOPTED 305124 THE BILL IS THE PRIDE OF HOUSE APPROPRIATIONS COMMITTEE CHAIRMAN WILLIAM NATCHER D KY WHO USED HIS STANDING TO ENGINEER THE VOTE ON THE ABORTION ISSUE THE ADMINISTRATION HAD SOUGHT TO AVOID A CONFRONTATION UNTIL A COMPROMISE ACCEPTABLE TO MR CLINTON COULD BE NEGOTIATED BUT MR NATCHER THOUGHT SOME RESTRICTIONS WERE NEEDED TO PROTECT HIS BILL FROM ATTACK IN PURSUING THIS STRATEGY HOWEVER HE ACCEPTED A PRECEDENT THAT COULD HAUNT HIM AS A CHAIRMAN WHO HAS SOUGHT TO BLOCK NONBUDGETRELATED AMENDMENTS ON SPENDING BILLS MR HYDE'S AMENDMENT WHICH MR NATCHER SUPPORTED WAS CRAFTED TO SATISFY A 1908 PROCEDURAL RULING GOVERNING RESTRICTIONS ON APPROPRIATIONS BILLS IF THE PRECEDENT BECOMES WIDELY USED IT COULD INVITE OTHERS TO CRAFT AMENDMENTS TO CIRCUMVENT RULES BANNING LEGISLATIVE RIDERS ON SPENDING BILLS THE FLOOR ACTION CAME AS HOUSE AND SENATE NEGOTIATORS REACHED AGREEMENT ON A SCALEDBACK SPENDING BILL THAT MIXES NEW MONEY AND OFFSETTING CUTS TO HELP FINANCE MILITARY AND DOMESTIC ACCOUNTS FOR THE REMAINING MONTHS OF THE YEAR ENDING SEPT 30 THE ADMINISTRATION PRESERVED ABOUT 660 MILLION OF ITS ONCE AMBITIOUS ECONOMICSTIMULUS BILL DESPITE LOBBYING BY VICE PRESIDENT AL GORE THE WHITE HOUSE FAILED TO INCREASE FUNDING TO PAY FOR WASHINGTON'S BACKLOG OF CONTRIBUTIONS DUE UNITED NATIONS PEACEKEEPING FORCES TO HELP OFFSET THE COST OF THE US MISSION TO SOMALIA SENATORS RESCINDED FUNDING FOR MORE THAN THREE DOZEN LARGELY CARGO PLANES BUILT BY HOMESTATE MANUFACTURERS AND AFTER YEARS OF GROWING ACCUSTOMED TO A COLD WAR STANDOFF WITH THE SOVIETS LAWMAKERS ON BOTH SIDES SEEM FLUMMOXED BY HOW TO REARRANGE THE BUDGET TO DEAL WITH INTERNATIONAL COSTS OF PEACE SOMETHING HAS TO BE DONE TO STOP THIS PEACEKEEPING ESCALATION COMPLAINED REP NEAL SMITH D IOWA IN AN EXCHANGE THIS WEEK AND WHILE SUPPORTIVE OF THE PRESIDENT SENATE APPROPRIATIONS CHAIRMAN ROBERT BYRD SAID HE SAW A DISTINCT LACK OF ENTHUSIASM FOR EXPANDED PEACEKEEPING FORCES AMONG DOMESTIC ACCOUNTS TEXAS LAWMAKERS BEAT BACK AN EFFORT TO RAID 118 MILLION IN ECONOMICDEVELOPMENT FUNDS FIRST APPROPRIATED IN THE MID1980S FOR A FORT WORTH RENEWAL PROJECT FAVORED BY FORMER SPEAKER JIM WRIGHT REP MARTIN FROST D TEXAS AN INFLUENTIAL MEMBER OF THE RULES COMMITTEE AND PAST ALLY OF MR WRIGHT'S WAS A PIVOTAL PLAYER BUT JOINING IN THE PORKBARREL LOBBYING WAS TEXAS'S NEW REPUBLICAN SENATOR KAY BAILEY HUTCHISON WHO WON ELECTION ONLY WEEKS AGO ON A PROMISE TO CUT THE DEFICIT 9307010163 930701 COMPUTERS IBM TO LAUNCH TWO PC UNITS IN NEW MARKETS BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP IS PREPARING TO LAUNCH TWO ENTIRELY NEW PERSONAL COMPUTER SUBSIDIARIES AN AMBITIOUS MOVE THAT WILL TAKE IT INTO NEW MARKETS BUT ALSO CREATE COMPETITION FOR ITS EXISTING PCS ONE UNIT WILL CREATE HIGHEND MACHINES WITH THE NEW POWERPC MICROCHIP DESIGNED BY IBM'S JOINT VENTURE WITH APPLE COMPUTER INC AND MOTOROLA INC THE OTHER DUBBED AMBRA WILL SELL ULTRACHEAP MACHINES THAT WON'T BEAR IBM'S NAME IBM WOULDN'T COMMENT ON EITHER PLANNED UNIT BUT INDUSTRY OFFICIALS FAMILIAR WITH IBM'S PLANS SAY THE POWERPC UNIT WILL BE UNVEILED TODAY AND AMBRA IS SLATED TO FOLLOW IN LATE AUGUST BOTH VENTURES PRESENT HIGHRISK STRATEGIC BALANCING ACTS FOR IBM IBM BADLY WANTS TO SUPPORT POWERPC AN AGGRESSIVE EFFORT TO WREST CONTROL OF THE LUCRATIVE MICROPROCESSOR MARKET AWAY FROM INTEL CORP BUT IBM'S CURRENT PCS ALL USE INTEL CHIPS SO IT DOESN'T WANT TO ALIENATE INTEL OR BADMOUTH ITS TECHNOLOGY THE NEW SUBSIDIARY MARKS IBM'S EFFORT TO PUT A WALL BETWEEN ITS POWERPC AND INTEL MACHINES IBM OFFICIALS SAY NOBUO MII A VETERAN IBM PC TECHNOLOGY GURU WILL RUN THE POWERPC BUSINESS AS FOR AMBRA IT WOULD LET IBM GO BOTTOMFISHING IN THE MARKET FOR CHEAP PC CLONES WITHOUT SULLYING THE IBM NAME IBM OFFICIALS ALSO ADMIT THAT MANY LOWEND PC BUYERSPARTICULARLY SEASONED TECHNICAL SAVANTSARE PUT OFF BY IBM'S BIG CORPORATE IMAGE IBM LAUNCHED THE AMBRA BRAND AS A CLONEBUSTING STRATEGY LAST YEAR IN EUROPE AND CANADA TO ROLL OUT AMBRA IN THE US IBM THIS YEAR HIRED A TEAM OF VETERAN CLONE MARKETERS LED BY FORMER NEC CORP MANAGER DAVID MIDDLETON IBM INSTALLED THE TEAM IN A FREESTANDING SUBSIDIARY SEPARATE FROM ITS MAIN PC UNIT AS IN EUROPE AND CANADA SOME AMBRA MACHINES ARE EXPECTED TO BE MADE FOR IBM BY WEARNES TECHNOLOGY CORP OF SINGAPORE AND POSSIBLY OTHER COMPANIES CONTRACTING OUT MANUFACTURING WOULD BE UNUSUAL BUT NOT UNPRECEDENTED FOR IBM IN AN INTERVIEW AT THE MOBBED PC EXPO TRADE SHOW IN NEW YORK IBM'S PC CHIEF ROBERT CORRIGAN SAID THE EUROPEAN AMBRA VENTURE OFFERED IBM INVALUABLE MARKET INTELLIGENCE ABOUT SUPPLIES AND PRICES WHAT AMBRA ALLOWS US TO DO IS LEARN WHAT IT TAKES TO OPERATE AT THE VERY VERY LOWEST COST IN THE MARKET AT THE BOTTOM HE SAID IT'S AIMED AT A PRICE BUYER PURE AND SIMPLE ON THE POWERPC FRONT IBM HAS BEEN WORKING ON THE NEW CHIP EVER SINCE IT ANNOUNCED ITS JOINT VENTURE WITH APPLE AND MOTOROLA IN 1991 MOTOROLA BEGAN SHIPPING SAMPLES OF THE CHIP EARLIER THIS YEAR AND IBM IS EXPECTED TO ADD IT TO ITS WORKSTATION LINE IN THE FOURTH QUARTER IN CONTRAST TO THE WORKSTATION PRODUCTS TYPICALLY AIMED AT SCIENTIFIC AND TECHNICAL USERS THE SUBSIDIARY TO BE ANNOUNCED TODAY WILL USE THE POWERPC IN MAINSTREAM PERSONAL COMPUTERS FOR USERS THE UPSHOT WILL BE THREE IBM UNITS WITH BLURRY BOUNDARIES WORKSTATIONS POWERPC PERSONAL COMPUTERS AND INTEL PERSONAL COMPUTERS A STILLUNANSWERED QUESTION IS WHETHER ALL THESE FINELY DEMARCATED UNITS WILL CONFUSE CUSTOMERS AND CREATE TURF BATTLES WITHIN IBM IN THE PAST MR CORRIGAN HAS SAID HE'S HAPPY TO RISK CANNIBALIZING ONE IBM LINE WITH ANOTHER AS LONG AS IBM GETS THE SALE ONE WAY OR ANOTHER IBM IS COVERING ITS BETS SAID SAM ALBERT A COMPUTER INDUSTRY CONSULTANT AND FORMER IBM MANAGER THE LOOMING BATTLE BETWEEN POWERPC AND INTEL'S NEW PENTIUM CHIP HAS BEEN GROWING INCREASINGLY SAVAGE AND AWKWARD FOR IBM LAST WEEK MOTOROLA TOOK OUT A 12PAGE INSERT IN THE WALL STREET JOURNAL TO TRUMPET THE NEW CHIP DECLARING IN GIANT TYPE IT HAS THE POWER TO BLOW AWAY PENTIUM WALL STREET ANALYSTS CITED THE PERCEIVED THREAT OF POWERPC LAST WEEK TO EXPLAIN A DIP IN INTEL'S STOCK AND A RISE IN MOTOROLA'S HOW CAN IBM MAKE A PRODUCT WITH THE POWERPC WITH THE SAME PEOPLE WHO DEAL WITH INTEL THEY CAN'T SAID MR ALBERT AT INTEL OFFICIALS SOUGHT TO DOWNPLAY THE SIGNIFICANCE OF IBM'S NEW PUSH INTO POWERPC MACHINES IBM CERTAINLY IS SOMEWHAT OF A CONFUSED COMPANY GOING A LOT OF DIFFERENT WAYS RIGHT NOW SAID CURT NICHOLS THE PENTIUM CHIP'S MARKETING DIRECTOR WE'LL JUST CONTINUE TO TRY TO DO THE BEST JOB WE CAN OF TRYING TO SERVICE IBM IBM IS PLANNING THE POWERPC AND AMBRA UNITS AS SALES AND MORALE ARE REBOUNDING AT ITS MAIN PC OPERATION AFTER YEARS OF FLOUNDERING WITH PCS PRICED AS MUCH AS 40 HIGHER THAN ITS RIVALS' IT SLASHED PRICES LAST YEAR AND HAS SEEN ITS MARKET SHARE SOAR YESTERDAY IBM SAID ITS SHIPMENTS HAVE RISEN MORE THAN 40 IN EACH OF THE LAST THREE QUARTERS COMPARED WITH THE YEARAGO QUARTERS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY IBM'S SHARES CLOSED AT 49375 UNCHANGED IBM HAS WASTED NO TIME TURNING ITS REBOUND INTO A HIGHENERGY MARKETING THEME MR CORRIGAN ADDRESSED THE PC EXPO YESTERDAY IN A SPEECH ENTITLED IBM ON THE COMEBACK TRAIL CLUTCHING HIS HOT THINKPAD PORTABLE PC WHILE ROCK MUSIC BLARED AND GIANT SCREENS FLASHED MTVSTYLE VIDEOS OF THE INDIANAPOLIS 500 A YEAR AGO OUR PORTABLES WERE A JOKE AT THIS EVENT A JOKE WHAT A DIFFERENCE A YEAR MAKES HE TOLD THE CROWD IBM IS ALSO STEPPING UP ITS EFFORTS TO MAKE PCS UNDER CONTRACT FOR OTHER VENDORS ONCE AN UNTHINKABLE MOVE FOR BIG BLUE JUST THIS WEEK ATARI CORP OF SUNNYVALE CALIF SAID IT TAPPED IBM TO MAKE A NEW MULTIMEDIA ENTERTAINMENT SYSTEM DUBBED JAGUAR DUE TO BE SOLD NEXT YEAR NEVERTHELESS ANALYSTS DON'T BELIEVE PCS ARE A BIG CONTRIBUTOR TO IBM'S BOTTOM LINE I DON'T KNOW IF THEY'RE PROFITABLE BUT THEY'RE DAMN CLOSE SAID CHARLES WOLF OF FIRST BOSTON HE ESTIMATES IBM PULLS IN 25 IN PC GROSS PROFITS BEFORE OVERHEAD COSTS MR WOLF SAID IBM'S BIGGER RIVALS SPEND 13 TO 15 OF SALES ON OVERHEAD I THINK IBM IS NOT DOWN TO THAT POINT BUT THEY'RE PROBABLY BELOW 25 HE SAID INDICATING A MODEST PROFIT IBM SAID ITS PC BUSINESS WAS PROFITABLE IN THE FIRST QUARTER OF 1993 BUT WOULDN'T COMMENT ON THE SECOND QUARTER 9307010162 930701 WHO'S NEWS BALDWIN TECHNOLOGY CO BALDWIN TECHNOLOGY CO ROWAYTON CONN WILLIAM J LAURICELLA 34 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER AT THIS MAKER OF MATERIALS HANDLING EQUIPMENT AND CONTROLS FOR THE PRINTING INDUSTRY MR LAURICELLA WHO HAD BEEN TREASURER SUCCEEDS KENNETH W REYNOLDS 54 WHO RESIGNED BALDWIN DIDN'T DISCLOSE A REASON FOR HIS RESIGNATION 9307010161 930701 WHO'S NEWS SERVICE MERCHANDISE CO SERVICE MERCHANDISE CO SAM CUSANO 39 YEARS OLD WAS NAMED CORPORATE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS CATALOG SHOWROOM RETAILER EFFECTIVE JULY 1 MR CUSANO'S PREVIOUS JOB WAS GROUP VICE PRESIDENT FOR FINANCE HE SUCCEEDS SP BRAUD III 62 WHO IS RETIRING AT THE END OF THE YEAR MICHAEL HOGREFE 33 THE COMPANY'S FORMER ASSISTANT TREASURER WILL TAKE ON MR BRAUD'S TITLE OF TREASURER 9307010160 930701 WHO'S NEWS SARA LEE CORP SARA LEE CORP CHICAGO DONALD J FRANCESCHINI 57YEAROLD CHIEF EXECUTIVE OFFICER OF SARA LEE INTIMATES AND A CORPORATE VICE PRESIDENT AND ROBERT L LAUER 59 VICE PRESIDENT CORPORATE AFFAIRS WERE NAMED SENIOR VICE PRESIDENTS OF THIS FOOD AND CONSUMERPRODUCTS CONCERN THE COMPANY ALSO NAMED THREE NEW VICE PRESIDENTS THEY ARE JAMES R CARLSON 51 PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PYA/MONARCH THE COMPANY'S FOODSERVICE BUSINESS PAUL J LUSTIG 43 PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SARA LEE BAKERY WORLDWIDE AND JACQUES AN VAN DIJK 55 PRESIDENT OF THE COMPANY'S COFFEE AND GROCERY BUSINESS BASED IN UTRECHT THE NETHERLANDS 9307010159 930701 WHO'S NEWS VIGORO CORP VIGORO CORP CHICAGO ROBERT E FOWLER JR 57 YEARS OLD FORMERLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BUTLER CAPITAL'S BCC INDUSTRIAL SERVICES UNIT WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS DISTRIBUTOR OF POTASH FERTILIZER AND RELATED PRODUCTS AS PRESIDENT MR FOWLER SUCCEEDS JAY D PROOPS 51 WHO WAS NAMED TO THE NEWLY CREATED POST OF VICE CHAIRMAN AS CHIEF OPERATING OFFICER HE SUCCEEDS JOSEPH P SULLIVAN 60 WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE 9307010158 930701 MICHAELS STORES SALES UP IRVING TEXAS MICHAELS STORES INC SAID SAMESTORE SALES INCREASED 12 IN JUNE REFLECTING A NEW ADVERTISING CIRCULAR THAT THE COMPANY INTRODUCED IN SOME MARKETS THIS YEAR THE ARTS AND CRAFTS RETAILER SAID TOTAL SALES FOR THE MONTH INCREASED 31 TO 348 MILLION 9307010157 930701 WHO'S NEWS SEARS ROEBUCK & CO SEARS ROEBUCK & CO CHICAGO ALICE M PETERSON 40 YEARS OLD MANAGING DIRECTOR OF CORPORATE FINANCE WAS NAMED VICE PRESIDENT AND TREASURER OF THIS RETAILING CONCERN SUCCEEDING EDWARD J CONDON JR WHO IS RETIRING 9307010156 930701 REVIEW & OUTLOOK EDITORIAL ASIDES SAFE HAVEN AMERICANS TICKED OFF AT BILL CLINTON FOR DUMPING A NEW TRUCKLOAD OF TAXES ONTO THEIR BACKS WITH A PROMISE TO DEDICATE IT ALL TO DEFICIT REDUCTION MAY FIND GRIM AMUSEMENT IN DEVELOPMENTS UP NORTH CANADA'S FINANCE MINISTER GILLES LOISELLE SAID RECENTLY THAT HIS ECONOMIC PLAN WILL INCLUDE SPENDING CUTS BUT NO TAX INCREASES CANADIANS ARE TAXED FAR TOO MUCH IN MY VIEW BUT THERE AGAIN YOU HAVE TO BALANCE IT HE SAID I DON'T THINK WE'LL BE LOOKING FOR TAXES WE'LL BE LOOKING FOR MORE CUTS AS THE REST OF THE WORLD TURNS AWAY FROM TAXDRIVEN ECONOMIC POLICY ONLY NEW DEMOCRATIC AMERICA HEADS BACK TOWARD THE 1970S 9307010155 930701 FINANCING BUSINESS RHI ENTERTAINMENT INC RHI ENTERTAINMENT INC A NEW YORK MOVIE PRODUCTION COMPANY SAID IT ENTERED INTO AN AGREEMENT TO SELL 375 MILLION OF 65 CONVERTIBLE SUBORDINATED DEBENTURES TO DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE DEBENTURES DUE 2003 AND CONVERTIBLE TO RHI COMMON STOCK AT 1750 A SHARE WILL BE PLACED WITH INSTITUTIONAL INVESTORS ABOUT 25 MILLION OF THE PROCEEDS WILL BE USED TO REDUCE DEBT 9307010154 930701 CANADIAN FARMERS CUT THEIR WHEAT ACREAGE OTTAWA CANADIAN FARMERS HAVE CUT THEIR WHEAT ACREAGE THIS YEAR BUT THEY HAVE BOOSTED THEIR SEEDING OF BARLEY OATS AND OILSEED CROPS REPORTED STATISTICS CANADA A GOVERNMENT AGENCY IT SAID A SURVEY OF FARMERS INDICATED A SPRING WHEAT ACREAGE OF 27881300 A 10 DECLINE FROM 30968500 IN 1992 SPRING WHEAT WHICH IS SEEDED IN THE SPRING AND HARVESTED IN THE FALL IS CANADA'S MAIN WHEAT CROP DURUM WHEAT ACREAGE WAS ESTIMATED AT 3665000 A 19 DECLINE FROM 3735000 IN 1992 AND THE SMALLEST SEEDING SINCE 1983 DURUM WHEAT IS USED TO PRODUCE PASTA PRODUCTS CANOLA OR RAPESEED ACREAGE WAS ESTIMATED AT A RECORD 10320000 A 305 INCREASE FROM 7895000 IN 1992 CANOLA IS CANADA'S MAIN OILSEED CROP STATISTICS CANADA SAID BARLEY ACREAGE WAS ESTIMATED AT 11276000 AN 117 INCREASE FROM 10098300 IN 1992 BARLEY IS CANADA'S MAIN FEED GRAIN OATS ACREAGE WAS ESTIMATED AT 4379300 A 65 INCREASE FROM 4110300 IN 1992 9307010153 930701 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 BLOUNT INC 100 MILLION OF SENIOR SUBORDINATED NOTES DUE JUNE 15 2013 PRICED AT PAR TO YIELD 9 ACCORDING TO MCM CORPORATEWATCH RATED SINGLEB2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES EXXON CAPITAL CORP 250 MILLION OF NOTES DUE JULY 1 2005 PRICED AS 6S AT 99775 TO YIELD 6026 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 025 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED TRIPLEA BY BOTH MOODY'S AND S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS EXXON CAPITAL IS A UNIT OF EXXON CORP FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF DEBENTURES DUE JULY 15 2003 PRICED AS 628S AT PAR ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 49 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC NEW YORK STATE ELECTRIC & GAS 100 MILLION OF FIRST MORTGAGE BONDS DUE JULY 15 2023 PRICED AS 745S AT 99548 TO YIELD 7488 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 08 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO PEPSICO INC 200 MILLION OF MEDIUMTERM NOTES DUE JUNE 30 1996 PRICED AS 46S AT 99916 TO YIELD 463 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 03 PERCENTAGE POINT ABOVE THE TREASURY THREEYEAR NOTE RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS TURNER BROADCASTING SYSTEM INC 300 MILLION OF SENIOR NOTES DUE JULY 1 2013 PRICED AS 8375S AT 991 TO YIELD 847 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 177 PERCENTAGE POINTS ABOVE THE TREASURY 20YEAR BOND RATED BA2 BY MOODY'S AND DOUBLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP USAIR GROUP INC 300 MILLION OF SENIOR NOTES DUE JULY 1 2003 PRICED AT PAR TO YIELD 10 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR FIVE YEARS RATED BA3 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO INDUSTRIAL SCIENTIFIC CORP INITIAL PUBLIC OFFERING OF 750000 COMMON SHARES AT 16 APIECE THROUGH LEAD MANAGER PARKER/HUNTER INC PULITZER PUBLISHING CO 14 MILLION COMMON SHARES PRICED AT 2925 APIECE THROUGH UNDERWRITERS LED BY AG EDWARDS & SONS WHEELINGPITTSBURGH CORP 27 MILLION SERIES A CONVERTIBLE PREFERRED SHARES OFFERED AT 50 APIECE THROUGH MANAGERS MERRILL LYNCH & CO PAINEWEBBER INC AND SALOMON BROTHERS INC THE SHARES ARE CONVERTIBLE INTO COMMON STOCK AT 1578 A SHARE OR 31686 COMMON SHARES FOR EACH PREFERRED SHARE BRADLEY REAL ESTATE TRUST 55 MILLION SHARES OF BENEFICIAL INTEREST PRICED AT 850 APIECE THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO NEW YORK CITY TRANSIT AUTHORITY 1499 MILLION SERIES 1993 TRANSITFACILITY REFUNDING REVENUE BONDS FOR THE LIVINGSTON PLAZA PROJECT PRICED BY A PRYOR MCCLENDON COUNTS & CO GROUP YIELDS RANGE FROM 425 IN 1998 TO 57 FOR ZEROCOUPON BONDS DUE IN 2012 AND 2013 THE OFFERING IS INSURED BY FINANCIAL SECURITY ASSURANCE AND CARRIES TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P PHILADELPHIA 350 MILLION SERIES AD OF 199394 TAX AND REVENUE ANTICIPATION NOTES PRICED BY A BEAR STEARNS & CO GROUP THE 100 MILLION SERIES A ARE 325S PRICED AT 100456 TO YIELD 275 ON JUNE 15 1994 THEY ARE BACKED BY AN IRREVOCABLE DIRECTPAY LETTER OF CREDIT FROM THE CANADIAN IMPERIAL BANK OF COMMERCE AND HAVE RATINGS OF MIG1 FROM MOODY'S SP1PLUS FROM S&P AND F1PLUS FROM FITCH INVESTORS SERVICE INC THE 50 MILLION SERIES B NOTES ARE 325S PRICED AT 100456 TO YIELD 275 ON JUNE 15 1994 THEY ARE BACKED BY AN IRREVOCABLE DIRECTPAY LETTER OF CREDIT FROM CORESTATES BANK THE NOTES HAVE A MIG1 RATING FROM MOODY'S AN SP1 RATING FROM S&P AND AN F1PLUS RATING FROM FITCH THE 100 MILLION SERIES C ARE 325S AT 100502 TO YIELD 27 ON JUNE 15 1994 THEY ARE BACKED BY AN IRREVOCABLE DIRECTPAY LETTER OF CREDIT FROM MORGAN GUARANTY TRUST CO OF NEW YORK AND THEY CARRY RATINGS OF MIG1 FROM MOODY'S SP1PLUS FROM S&P AND F1PLUS FROM FITCH THE 100 MILLION SERIES D ARE 325S PRICED AT 100456S TO YIELD 275 ON JUNE 15 1994 THEY ARE BACKED BY AN IRREVOCABLE DIRECTPAY LETTER OF CREDIT FROM PNC BANK THE NOTES HAVE A MIG1 RATING FROM MOODY'S AN SP1 RATING FROM S&P AND AN F1PLUS RATING FROM FITCH FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES 1993133 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 298 YEARS ABB INTERNATIONAL FINANCE NV SWISSSWEDISH PARENT 100 MILLION OF FLOATINGRATE EURONOTES DUE JULY 15 1994 AT ISSUE PRICE 100125 VIA LEHMAN BROTHERS INTERNATIONAL LTD INTEREST PAYABLE QUARTERLY AT THREEMONTH LONDON INTERBANK OFFERED RATE FOR DOLLARS LESS 0125 POINT KEEPWELL AGREEMENT WITH ABB ASEA BROWN BOVERI LTD FEES UNDISCLOSED ARBED SA LUXEMBOURG 125 MILLION MARKS OF CONVERTIBLE EUROBONDS DUE JULY 15 2003 VIA MERRILL LYNCH BANK AG BONDS CONVERTIBLE INTO ARBED SHARES AT PREMIUM FROM 13 TO 16 ABOVE CLOSING SHARE PRICE ON JULY 8 WHEN FINAL TERMS FIXED CLOSING SHARE PRICE ON JUNE 29 WAS 3030 BELGIAN FRANCS COUPON WILL BE SET AT BETWEEN 2125 AND 2375 AND PRICED TO YIELD BETWEEN 6125 AND 6375 FEES 25 POINTS LEAD UNDERWRITER DEDUCTS 025 POINT AS SPECIAL COMMISSION BANCO COMERCIAL PORTUGUES MADEIRA BRANCH PORTUGUESE PARENT 150 MILLION OF FLOATINGRATE EURONOTES DUE JULY 15 1996 AT ISSUE AND REOFFER PRICE PAR VIA JP MORGAN SECURITIES LTD INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH LIBOR FOR DOLLARS PLUS 025 POINT FEES 0125 POINT COUNCIL OF EUROPE RESETTLEMENT FUND SUPRANATIONAL 250 MILLION SWEDISH KRONOR OF SUBORDINATED REVERSECOUPON FLOATINGRATE EURONOTES DUE APRIL 14 2000 AT ISSUE PRICE 101075 VIA MORGAN STANLEY INTERNATIONAL REOFFERED AT 995 INTEREST PAYABLE AT 9 ANNUALLY FOR FIRST NINE MONTHS THEREAFTER AT 1475 LESS SIXMONTH STOCKHOLM INTERBANK BORROW OFFER RATE FEES 1875 POINTS CREDIT LOCAL DE FRANCE FRENCH AGENCY 500 BILLION ITALIAN LIRE OF ZEROCOUPON EUROBONDS DUE AUG 1 2003 AT ISSUE PRICE 3972 VIA IMI BANK LUXEMBOURG SA BONDS YIELD 10027 ANNUAL FEES 125 POINTS DEVELOPMENT BANK OF THE PHILIPPINES PHILIPPINES AGENCY 175 MILLION OF 8 EUROBONDS DUE JULY 22 1998 AT ISSUE AND REOFFER PRICE 99434 VIA CITIBANK INTERNATIONAL PLC BONDS YIELD 814 SEMIANNUAL A SPREAD OF 310 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE FEES 09375 POINT EUROPEAN INVESTMENT BANK SUPRANATIONAL TWO BILLION FRENCH FRANCS OF 625 EUROBONDS DUE JULY 28 1999 AT ISSUE AND REOFFER PRICE 9947 VIA CREDIT LYONNAIS BONDS YIELD 636 ANNUAL A SPREAD OF EIGHT BASIS POINTS ABOVE 8125 OBLIGATIONS ASSIMABLES DU TRESOR DUE 1999 FEES 0275 POINT GENERAL ELECTRIC CAPITAL CORP US PARENT 200 MILLION CANADIAN DOLLARS OF 65 EUROBONDS DUE DEC 30 1996 AT ISSUE PRICE 100987 VIA SALOMON BROTHERS INTERNATIONAL LTD REOFFERED AT 99687 TO YIELD 66 ANNUAL A MARGIN OF 20 BASIS POINTS OVER COMPARABLE CANADIAN GOVERNMENT NOTE FEES 15 POINTS JAPAN AIR LINES CO JAPAN 20 BILLION YEN OF 545 EUROBONDS DUE OCT 29 2002 AT ISSUE PRICE 101625 VIA DAIWA EUROPE LTD REOFFERED AT 100125 TO YIELD 543 FEES TWO POINTS JAPAN AIR LINES CO 15 BILLION YEN OF 45 EUROBONDS DUE JULY 22 2003 AT ISSUE PRICE 10185 VIA NOMURA INTERNATIONAL PLC REOFFERED AT 10035 TO YIELD 545 TWO SHORT FIRST COUPON PERIODS RUN FROM PAYMENT DATE UNTIL OCT 22 1993 AND FROM OCTOBER TO JULY 22 2003 INTEREST PAYABLE ANNUALLY THEREAFTER FEES TWO POINTS JAPAN AIR LINES CO 15 BILLION YEN OF 55 EUROBONDS DUE OCT 29 2003 AT ISSUE PRICE 10185 VIA NIKKO EUROPE LTD REOFFERED AT 100225 TO YIELD 547 FEES TWO POINTS MITSUBISHI KASEI CORP JAPAN 20 BILLION YEN OF 44 EUROBONDS DUE OCT 29 1997 AT ISSUE PRICE 101425 VIA YAMAICHI INTERNATIONAL EUROPE LTD REOFFERED AT 1001 TO YIELD 437 ANNUAL PUT OPTION EXERCISABLE ON OCT 29 1996 AT PAR FEES 1625 POINTS SWEDISH EXPORT CREDIT SWEDISH AGENCY 100 MILLION OF FLOATINGRATE EURONOTES DUE JULY 9 1994 AT ISSUE PRICE 1001 VIA LEHMAN BROTHERS INTERNATIONAL LTD INTEREST PAYABLE QUARTERLY AT THREEMONTH LIBOR FOR DOLLARS LESS 0125 POINT FEES UNDISCLOSED SWEDISH NATIONAL HOUSING FINANCE CORP SWEDEN 10 BILLION YEN OF 425 EUROBONDS DUE NOV 5 1996 AT ISSUE AND REOFFER PRICE PAR VIA NIKKO EUROPE LTD BONDS YIELD 425 ANNUAL FEES UNDISCLOSED WORLD BANK SUPRANATIONAL 225 BILLION YEN OF 45 GLOBAL BONDS DUE JUNE 20 2000 AT ISSUE AND REOFFER PRICE 99983 VIA DAIWA EUROPE LTD IBJ INTERNATIONAL LTD AND GOLDMAN SACHS INTERNATIONAL LTD BONDS YIELD MARGIN OF 12 BASIS POINTS ABOVE JAPANESE GOVERNMENT'S NO 129 BOND FEES 03 POINT PAYABLE SEMIANNUALLY 9307010152 930701 CINCINNATI BELL TO REDEEM STOCK CINCINNATI CINCINNATI BELL INC SAID IT WILL REDEEM ABOUT 16 MILLION SHARES OF 725 PREFERRED STOCK ON JULY 26 BECAUSE THE STOCK IS CONVERTIBLE INTO COMMON STOCK AT A PRICE LESS THAN ITS CURRENT PRICE IT IS EXPECTED THAT WESTERN & SOUTHERN LIFE INSURANCE CO THE SOLE HOLDER OF THE SHARES WILL CHOOSE TO RECEIVE ABOUT 32 MILLION CINCINNATI BELL COMMON SHARES IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE CINCINNATI BELL SHARES WERE QUOTED AT 22625 DOWN 375 CENTS 9307010151 930701 FINANCING BUSINESS KAISER ALUMINUM CORP KAISER ALUMINUM CORP HOUSTON SAID IT COMPLETED ITS OFFERING OF 171 MILLION DEPOSITARY SHARES AND THAT THE UNDERWRITERS FOR THE TRANSACTION HAVE EXERCISED THEIR OVERALLOTMENT OPTION TO PURCHASE AN ADDITIONAL 225 MILLION DEPOSITARY SHARES THE TRANSACTION YIELDED NET PROCEEDS OF ABOUT 120 MILLION KAISER SAID EACH DEPOSITARY SHARE REPRESENTS A ONETENTH INTEREST IN A SHARE OF ITS SERIES A PREFERRED STOCK MERRILL LYNCH & CO WAS THE MANAGING UNDERWRITER 9307010150 930701 TECHNOLOGY ECOGEN INC FORMS AN ALLIANCE LANGHORNE PA ECOGEN INC SAID IT FORMED AN ALLIANCE WITH NISSAN CHEMICAL INDUSTRIES LTD TO COMMERCIALIZE BIOINSECTICIDES AND BIOFUNGICIDES FOR THE 3 BILLION JAPANESE PESTICIDE MARKET UNDER TERMS NISSAN CHEMICAL WILL HAVE THE EXCLUSIVE RIGHT TO EVALUATE SOME OF ECOGEN'S BIOLOGICAL PEST CONTROL PRODUCTS AND ASSIST ECOGEN WITH THE DEVELOPMENT OF PRODUCTS FOR THE JAPANESE MARKET NISSAN CHEMICAL BASED IN TOKYO HAD SALES OF 341 MILLION LAST YEAR ECOGEN HAD 1992 REVENUE OF ABOUT 9 MILLION 9307010149 930701 INTERNATIONAL JAPANESE STEEL EXPORTS UP TOKYO JAPAN'S STEEL EXPORTS FOR MAY INCREASED 32 FROM THE YEAREARLIER MONTH TO 2140000 METRIC TONS MARKING THE 13TH CONSECUTIVE MONTH OF YEARONYEAR INCREASES THE JAPAN IRON AND STEEL FEDERATION SAID A METRIC TON IS 22046 POUNDS AS HAS BEEN THE CASE IN RECENT MONTHS A SHARP EXPANSION IN EXPORTS TO CHINA PUSHED UP OVERALL STEEL EXPORTS FOR MAY A FEDERATION SPOKESMAN SAID BY CONTRAST SHIPMENTS TO THE US FELL FROM THE YEAREARLIER LEVEL FOR THE SIXTH STRAIGHT MONTH 9307010148 930701 TECHNOLOGY & HEALTH HOSPITAL ADMINISTRATIVE COSTS SURGE AS REGULATORY REQUIREMENTS INCREASE BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL ADMINISTRATIVE COSTS ARE RISING FASTER THAN ANY OTHER SPENDING CATEGORY AT HOSPITALS LARGELY BECAUSE OF INCREASED REGULATORY OBLIGATIONS ACCORDING TO A STUDY THE REPORT PUBLISHED IN THE CURRENT ISSUE OF THE ANNALS OF INTERNAL MEDICINE EXAMINES THE OPERATING BUDGETS OF 70 HOSPITALS IN WESTERN PENNSYLVANIA FROM 1983 TO 1990 DURING THAT PERIOD ADMINISTRATIVE COSTS SOARED AN AVERAGE 90 AT THE HOSPITALS THAT WAS DOUBLE THE RISE IN THE HOSPITALS' OVERALL SPENDING THE PENNSYLVANIA STUDY IS LIKELY TO INTENSIFY CONCERN ABOUT THE PAPERWORK LOAD IN THE US HEALTHCARE SYSTEM DONNA SHALALA SECRETARY OF HEALTH AND HUMAN SERVICES HAS SAID THAT REDUCED PAPERWORK COULD GENERATE SUBSTANTIAL SAVINGS TO HELP PAY FOR THE WHITE HOUSE'S HEALTHCARE PACKAGE AND A LEADING CONGRESSIONAL ADVOCATE OF MANAGED COMPETITION IN HEALTH CARE REP JIM COOPER D TENN COMPLAINED IN A NEW YORK SPEECH THAT THE CURRENT SYSTEM IS RUN BY A PLEASETHEBUREAUCRAT PARADIGM ONE OF THE AUTHORS OF THE PENNSYLVANIA STUDY DAVID J SHULKIN SAID HE DOESN'T AUTOMATICALLY REGARD HIGH ADMINISTRATIVE SPENDING AS WASTEFUL MUCH OF THE MONEY GOES FOR COLLECTING DATA THAT YOU CAN GIVE BACK TO PEOPLE AND USE AS THE BASIS FOR MAKING MORE EFFICIENT MEDICAL CHOICES HE SAID STILL DR SHULKIN SAID THERE'S CONCERN THAT RISING ADMINISTRATIVE SPENDING EITHER JACKS UP PRICES OR DIVERTS MONEY FROM PATIENT CARE DR SHULKIN IS DIRECTOR OF CLINICAL OUTCOME ASSESSMENT AND QUALITY MANAGEMENT AT THE UNIVERSITY OF PENNSYLVANIA MEDICAL CENTER PHILADELPHIA WHILE THE PENNSYLVANIA STUDY COVERED ONLY HALF OF ONE STATE DR SHULKIN SAID ITS FINDINGS COULD APPLY ON A NATIONAL SCALE HE NOTED THAT THE 70HOSPITAL SAMPLE INCLUDES A MIX OF URBAN RURAL LARGE SMALL TEACHING AND COMMUNITY HOSPITALS WESTERN PENNSYLVANIA IS ATYPICAL IN ONE RESPECT HE SAID IN THAT HEALTH MAINTENANCE ORGANIZATIONS AND OTHER MANAGEDCARE COMPANIES HAVE A LOWERTHANAVERAGE PRESENCE BUT DR SHULKIN SAID THAT THE RISE IN ADMINISTRATIVE COSTS MAY BE EVEN SHARPER WHERE THERE'S MORE MANAGED CARE BECAUSE MANAGEDCARE COMPANIES GENERALLY MONITOR HOSPITAL SPENDING MORE CLOSELY THAN STANDARD INSURERS OVERALL THE PENNSYLVANIA STUDY FOUND THAT ADMINISTRATIVE SPENDING CLIMBED TO 139 OF HOSPITAL BUDGETS IN 1990 UP FROM 106 IN 1983 DURING THAT PERIOD ADMINISTRATIVE SPENDING GREW 90 COMPARED WITH RISES OF JUST 29 FOR SERVICE DEPARTMENTS SUCH AS LINEN AND FOOD SERVICE 30 FOR ANCILLARY SERVICES SUCH AS XRAYS AND AMBULANCES AND 52 FOR PROFESSIONAL CARE THE PENNSYLVANIA STUDY ALSO FOUND THAT SPENDING ROSE MOST RAPIDLY IN HIGHLY REGULATED AREAS SUCH AS QUALITY ASSURANCE UTILIZATION REVIEW LEGAL AFFAIRS AND GOVERNMENT AFFAIRS SUCH DEPARTMENTS POSTED AN 84 RISE IN SPENDING FROM 1983 TO 1990 COMPARED WITH JUST A 5 INCREASE FOR DEPARTMENTS WITH FEW REGULATORY REQUIREMENTS BECAUSE OF TIME LAGS IN COLLECTING DATA THE PENNSYLVANIA STUDY DOESN'T GO BEYOND 1990 THE STUDY IN FACT FOUND A SLOWDOWN IN ADMINISTRATIVE SPENDING GROWTH FROM 1989 TO 1990 BUT DR SHULKIN SAID THAT ON THE BASIS OF ANECDOTAL EVIDENCE HE BELIEVES THAT ADMINISTRATIVE SPENDING HAS CONTINUED TO INCREASE ITS SHARE OF TOTAL HOSPITAL BUDGETS SINCE 1990 9307010147 930701 CHASE SEEKS BRANCH IN CHINA NEW YORK CHASE MANHATTAN CORP SAID IT APPLIED TO OPEN ITS FIRST BRANCH BANK IN CHINA IN THE NORTHEASTERN PORT OF TIANJIN TIANJIN AND OTHER COASTAL CITIES WERE OPENED TO FOREIGN BANKS IN MAY PREVIOUSLY SUCH BANKS WERE RESTRICTED TO FIVE SPECIAL ECONOMIC ZONES AND SHANGHAI CHASE ALREADY HAS REPRESENTATIVE OFFICES WHICH DO ADVISORY WORK IN SHANGHAI AND BEIJING A BRANCH OFFICE WOULD CONDUCT A RANGE OF BANKING FUNCTIONS 9307010146 930701 INTERNATIONAL SPAIN'S OUTPUT DECLINES MADRID SPAIN'S GROSS DOMESTIC PRODUCT CONTRACTED 11 IN THE FIRST QUARTER COMPARED WITH THE FIRST QUARTER OF 1992 THE NATIONAL STATISTICS INSTITUTE SAID THE INSTITUTE ADDED THAT THE DATA SHOWED THAT SPAIN'S RECESSIONARY SYMPTOMS AND TENDENCIES HAVE CONTINUED AND EVEN DEEPENED IN THE FOURTH QUARTER OF 1992 THE GDP SHRANK 02 FROM A YEAR EARLIER 9307010145 930701 CASH AMERICA CLOSES PURCHASE FORT WORTH TEXAS CASH AMERICA INTERNATIONAL INC SAID IT COMPLETED ITS ACQUISITION OF CLOSELY HELD EXPRESS CASH INTERNATIONAL INC SAN ANTONIO TEXAS FOR 63 MILLION IN CASH AND 65 MILLION IN ASSUMED DEBTS BOTH COMPANIES OPERATE PAWN SHOPS CASH AMERICA ANNOUNCED IN FEBRUARY THAT IT INTENDED TO PURCHASE EXPRESS CASH FOR 75 MILLION IN STOCK BUT REVISED THE TERMS OF THE ACQUISITION LAST MONTH 9307010144 930701 FINANCING BUSINESS FEDERAL INDUSTRIES LTD FEDERAL INDUSTRIES LTD TORONTO SAID IT HAS AGREED TO ISSUE 100 MILLION OF 10 SENIOR NOTES DUE 2000 TO CITICORP SECURITIES MARKETS INC CITIBANK CANADA SECURITIES LTD AND CITIBANK INTERNATIONAL PLC UNITS OF CITICORP IN NEW YORK THE NOTES ARE INTENDED FOR RESALE TO INVESTORS IN THE US PROCEEDS OF THE ISSUE WHICH IS SET TO CLOSE JULY 8 WILL BE USED BY THE STEEL AND TRANSPORTATION CONCERN PRIMARILY TO REPAY BANK DEBT THE ISSUE FIRST ANNOUNCED IN MAY WAS REDUCED IN SIZE TO 100 MILLION FROM 125 MILLION FEDERAL INDUSTRIES ALSO SAID ITS LENDERS HAVE COMMITTED TO PROVIDE A REVOLVING CREDIT FACILITY OF 150 MILLION CANADIAN DOLLARS US117 MILLION TO BE IN PLACE BY SEPT 1 CONDITIONAL ON THE COMPLETION OF THE NOTE ISSUE 9307010143 930701 SUNCOR TO SELL 22 PROPERTIES TORONTO SUNCOR INC SAID IT AGREED TO SELL 22 NONCORE OIL AND GAS PROPERTIES TO SEVERAL BUYERS FOR 44 MILLION CANADIAN DOLLARS 343 MILLION ON WHICH SUNCOR WILL REPORT A PROFIT OF 11 MILLION CANADIAN DOLLARS AFTER TAX THE PETROLEUM COMPANY SAID IT WILL BOOK ROUGHLY TWOTHIRDS OF THE GAIN IN THE SECOND QUARTER OF 1993 AND THE REST IN THE FOLLOWING QUARTER SUNCOR IS 55OWNED BY SUN CO IN RADNOR PA 9307010142 930701 FINANCING BUSINESS FREEPORTMCMORAN COPPER & GOLD INC FREEPORTMCMORAN COPPER & GOLD INC NEW ORLEANS SAID IT IS OFFERING 14 MILLION DEPOSITARY SHARES PRICED AT 25 A SHARE THE SHARES ARE WORTH 005 SHARES OF STEPUP CONVERTIBLE PREFERRED STOCK THE MINING COMPANY WILL PAY CUMULATIVE QUARTERLY DIVIDENDS ON THE CONVERTIBLE PREFERRED STOCK BEGINNING NOV 1 AT AN ANNUAL RATE OF 125 A DEPOSITARY SHARE THROUGH AUG 1 1996 AFTER THAT DATE THE ANNUAL DIVIDEND INCREASES TO 175 A SHARE NET PROCEEDS TO THE COMPANY OF 341 MILLION WILL BE USED TO REDUCE BORROWING UNDER A CERTAIN CREDIT AGREEMENT FREEPORT SAID THE SALE WILL BE MANAGED BY KIDDER PEABODY & CO SEPARATELY STANDARD & POOR'S CORP REVISED ITS RATINGS OUTLOOK ON THE COMPANY'S DEBT TO NEGATIVE FROM STABLE 9307010141 930701 INTERNATIONAL JAPAN EXPECTS TO REPORT GOVERNMENT BUDGET DEFICIT TOKYO KYODO THE JAPANESE GOVERNMENT WILL POST A 155 TRILLION YEN 1458 BILLION BUDGET SHORTFALL FOR THE YEAR ENDED MARCH 31 FINANCE MINISTRY OFFICIALS SAID IT WILL BE THE FIRST TIME IN 11 YEARS THAT THE GOVERNMENT HAS INCURRED A BUDGET SHORTFALL THE BUDGET DEFICIT FIGURE WILL BE FORMALLY ANNOUNCED THURSDAY THE MINISTRY OFFICIALS SAID OFFERING AN OUTLINE THE OFFICIALS SAID TAX REVENUE FOR THE YEAR APPEARS TO BE 319 TRILLION YEN SHORT OF THE GOVERNMENT'S ORIGINAL PROJECTION THE FINANCE MINISTRY PLANS TO TRANSFER ADJUSTMENT FUNDS TO THE GENERAL ACCOUNT TO COVER THE DEFICIT THE OFFICIALS SAID THE FUNDS NEED TO BE REPAID DURING THE CURRENT FISCAL YEAR FINANCE MINISTER YOSHIRO HAYASHI WILL HOLD A NEWS CONFERENCE FRIDAY TO EXPLAIN THE TIGHT NATIONAL FINANCES HE IS EXPECTED TO DISCLOSE A POLICY OF LIMITING GOVERNMENT EXPENDITURES 9307010140 930701 JOLT TO NAFTA FEDERAL JUDGE'S RULING COULD BE DEATH BLOW TO FREETRADE ACCORD CALL FOR ENVIRONMENTAL STUDY MAY DELAY VOTE ON PACT CAUSE DEFEAT IN CONGRESS PROFOUND EFFECTS FOR MEXICO BY BOB DAVIS AND ASRA Q NOMANI STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON WITH THE NORTH AMERICAN FREE TRADE AGREEMENT IN SUCH PERILOUS POLITICAL SHAPE THAT ANY DELAY COULD BE FATAL A FEDERAL JUDGE HERE HANDED DOWN A RULING THAT COULD BECOME A DEATH SENTENCE FOR THE PACT FEDERAL DISTRICT COURT JUDGE CHARLES RICHEY RULED THAT THE CLINTON ADMINISTRATION MUST FILE AN ENVIRONMENTALIMPACT STATEMENT EVALUATING THE EFFECTS OF THE TRADE ACCORD A PROCESS THAT COULD TAKE MONTHS OR EVEN YEARS TO COMPLETE WITH THE TRADE PACT WITH MEXICO AND CANADA ALREADY FLOUNDERING IT WOULD BE THE DEATH OF NAFTA SAYS JULIUS KATZ THE FORMER US TRADE OFFICIAL WHO NEGOTIATED THE AGREEMENT INDEED THE REQUIREMENT IS SO ONEROUS MR KATZ SAYS IT WOULD TAKE THE US OUT OF THE BUSINESS OF NEGOTIATING TRADE AGREEMENTS TREASURY SECRETARY LLOYD BENTSEN VOWS THAT THE ADMINISTRATION WILL APPEAL THE RULING IT VIOLATES THE PRESIDENT'S AUTHORITY TO CARRY ON FOREIGN RELATIONS FOR OUR COUNTRY HE SAID IN AN INTERVIEW THOUGH THE ADMINISTRATION WILL PUSH FOR AN EXPEDITED APPEAL EVEN THAT COULD TAKE MONTHS AND DURING THAT TIME MR BENTSEN SAYS IT IS UNCLEAR WHETHER THE RULING PRECLUDES US FROM WORKING ON SIDE AGREEMENTS TO THE TRADE ACCORD ON ENVIRONMENTAL AND LABOR ISSUES THAT PRESIDENT CLINTON HAS PROMISED TO NEGOTIATE THE ADMINISTRATION HAD BEEN PUSHING TO GET CONGRESS TO RATIFY NAFTA BY THE END OF THIS YEAR SO THAT IT COULD BE PUT INTO EFFECT ON JAN 1 THE DELAYS CREATED BY YESTERDAY'S COURT RULING DISRUPT THAT TIMETABLE AND IF A VOTE IN CONGRESS IS PUSHED OFF INTO NEXT YEAR ROSS PEROT AND OTHER NAFTA FOES WILL HAVE MORE TIME TO ORGANIZE AND WEAKEN THE RESOLVE OF WAVERING LAWMAKERS HOURS BEFORE YESTERDAY'S COURT RULING HOUSE FOREIGN AFFAIRS COMMITTEE CHAIRMAN LEE HAMILTON AN INDIANA DEMOCRAT WARNED NAFTA WILL BE A LOST CAUSE IF THE CAMPAIGN FOR IT DOES NOT BEGIN SOON AND IN EARNEST THE NEWEST THREAT TO NAFTA WHICH COMES JUST BEFORE PRESIDENT CLINTON JETS OFF TO TOKYO FOR A SUMMIT OF THE LEADERS OF THE SEVEN MAJOR INDUSTRIAL POWERS FURTHER COMPLICATES HIS EFFORTS TO EXERCISE WORLD LEADERSHIP THE ADMINISTRATION HAD ONCE HOPED TO MAKE SIGNIFICANT PROGRESS ON WORLDTRADE TALKS AND JAPANESE TRADE ISSUES AT THE SUMMIT BUT THOSE HOPES HAVE FADED WITH THE FALL OF THE JAPANESE GOVERNMENT AND RENEWED RESISTANCE FROM FRANCE NOW WITH NAFTA IN DOUBT IT WEAKENS CLINTON'S HAND FURTHER SAYS MICHAEL AHO DIRECTOR OF ECONOMIC STUDIES AT THE COUNCIL ON FOREIGN RELATIONS IF WE CAN'T DO MEXICO WHO CAN WE DO IN MEXICO THE EFFECTS OF A NAFTA DEFEAT COULD BE PROFOUND MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI HAS MADE THE PROSPECT OF FREE TRADE WITH THE US A CORNERSTONE OF HIS ECONOMIC AND POLITICAL STRATEGY USING IT TO CUSHION THE BLOWS OF TOUGH ECONOMIC DECISIONS A DELAY OR REJECTION IN NAFTA WOULD BOTH HURT HIM AND COMPLICATE MEXICO'S PROCESS OF PRESIDENTIAL SUCCESSION OVER THE NEXT FEW MONTHS MR SALINAS IS EXPECTED TO NOMINATE HIS SUCCESSOR WHICH IS TANTAMOUNT TO ELECTION BECAUSE THE RULING PARTY HAS NEVER LOST A PRESIDENTIAL RACE THE SALINAS GOVERNMENT HAD HOPED TO HAVE THE TREATY IN HAND BEFORE NEXT SUMMER'S PRESIDENTIAL ELECTIONS AS A SIGN THAT ITS POLICY OF RAPPROCHEMENT WITH THE US HAD BORNE FRUIT A DELAY WOULD STRENGTHEN THE HAND OF MEXICAN LEFTISTS WHO HAVE OPPOSED THE PACT WITH MEXICO'S HISTORIC NEMESIS RETAINING INVESTOR CONFIDENCE THE IMMEDIATE CHALLENGE IS MAINTAINING THE CONFIDENCE OF FOREIGN INVESTORS WHO HOLD ABOUT ONEFIFTH OF MEXICO'S EQUITIES AND HALF OF ITS TREASURY BILLS THE GOVERNMENT HAS RELIED UPON THE FOREIGN INVESTMENT MOST OF IT VERY LIQUID TO FUND A HUGE DEFICIT IN THE CURRENT ACCOUNT IF CAPITAL INFLOWS STOP OR IF CAPITAL BEGINS MOVING OUT OF MEXICO THE STABILITY OF THE PESO WOULD BE PLACED IN JEOPARDY A PESO DEVALUATION WOULD WRECK THE PRESIDENT'S ECONOMICREFORM PROGRAM AND GREATLY DIMINISH HIS POPULARITY THE NEWS PROMPTED A SLIDE ON THE MEXICAN STOCK MARKET YESTERDAY WITH THE BOLSA DE VALORES'S KEY IPC INDEX FALLING NEARLY 2 COMMERCE SECRETARY JAIME SERRA PUCHA TRIED TO MINIMIZE THE EFFECTS OF THE COURT DECISION SAYING THE RULING WILL NOT AFFECT THE PARALLEL ACCORDS SIMILARLY THE CANADIAN GOVERNMENT DESCRIBING THE CASE AS AN INTERNAL US PROCEDURE SAYS OTTAWA HAS NO REASON TO BELIEVE THAT THE AGREEMENT WON'T BE IMPLEMENTED AS PLANNED FOR THE US A DEFEAT OF NAFTA COULD MEAN REDUCED GROWTH IN TRADE WITH MEXICO WHICH HAS BECOME THE US'S THIRDBIGGEST TRADING PARTNER IN ADDITION ANY HOPE OF EXPANDING NAFTA TO INCLUDE FASTGROWING NATIONS IN LATIN AMERICA WOULD EVAPORATE PRESIDENT CLINTON HAD TALKED ABOUT NEGOTIATING A FREETRADE PACT WITH CHILE AFTER NAFTA WAS APPROVED WHILE ARGENTINA HAS BEEN POSITIONING ITSELF TO BECOME A PARTNER THE CLINTON ADMINISTRATION VOWED TO FIGHT HARD TO HEAD OFF ANY CONSEQUENCES OF JUDGE RICHEY'S RULING AND SOUGHT TO SOUND OPTIMISTIC THE FACT IS THAT IT DOESN'T AFFECT OUR COMMITMENT TO NEGOTIATING BOTH LABOR AND ENVIRONMENTAL SUPPLEMENTAL AGREEMENTS IT WILL NOT DELAY THE LEGISLATIVE PROCESS SAID CLINTON TRADE REPRESENTATIVE MICKEY KANTOR AT A WHITE HOUSE BRIEFING IN HIS NAFTA RULING JUDGE RICHEY SAID THAT US LAW REQUIRES AN ENVIRONMENTALIMPACT STATEMENT FOR FEDERAL ACTIONS SIGNIFICANTLY AFFECTING THE QUALITY OF THE HUMAN ENVIRONMENT AND THEN CITED A BUSH ADMINISTRATION STUDY THAT SAID NAFTA COULD WORSEN ENVIRONMENTAL PROBLEMS ALREADY EXISTING ALONG THE USMEXICO BORDER AREA AS A RESULT HE SAID THE CLINTON ADMINISTRATION WAS REQUIRED TO PREPARE A STATEMENT BEFORE IT SUBMITTED THE ACCORD TO CONGRESS THE BREADTH OF SUCH AN ENVIRONMENTAL EVALUATION COULD BE VAST ALONG WITH THE BORDER PROBLEMS JUDGE RICHEY CITED CONCERNS THAT NAFTA'S REDUCTION OF TRADE BARRIERS COULD LOWER PRICES FOR FARMERS AND RANCHERS THUS CREATING PRESSURE TO INTENSIFY DOMESTIC PRODUCTION METHODS WHICH WILL HAVE A DETRIMENTAL EFFECT ON THE ENVIRONMENT TO ANSWER THOSE CONCERNS THE ADMINISTRATION WOULD HAVE TO REVIEW THE ENVIRONMENTAL IMPACT OF NAFTA ON FARMS AND RANCHES THROUGHOUT THE US IN ADDITION JUDGE RICHEY RAISED THE QUESTION OF WHETHER NAFTA WOULD CREATE POLLUTION HAVENS IN MEXICO AS US COMPANIES MOVED THEIR OPERATIONS TO MEXICO TO AVOID MORESTRINGENT POLLUTION REQUIREMENTS THE CLINTON ADMINISTRATION ALREADY HAD BEEN GRAPPLING WITH THE ISSUE OF WHETHER THE US MUST PREPARE ENVIRONMENTALIMPACT STATEMENTS FOR ACTIONS THAT AFFECT OTHER COUNTRIES IN MARCH PRESIDENT CLINTON DECIDED NOT TO APPEAL A FEDERAL COURT DECISION REQUIRING SUCH AN ASSESSMENT BEFORE THE US BUILT AN INCINERATOR IN ANTARCTICA IN APPEALING JUDGE RICHEY'S RULING THE ADMINISTRATION IS EXPECTED TO ARGUE THAT THE ALLIANCE OF ENVIRONMENTAL AND CONSUMER GROUPS THAT BROUGHT THE SUIT LACKS THE STANDING TO SUE THE ADMINISTRATION AND THAT THE RULING REPRESENTS AN UNCONSTITUTIONAL INTERFERENCE WITH THE PRESIDENT'S AUTHORITY THAT APPEAL WILL BE HEARD BY THE US COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA IN THEORY THE APPELLATE COURT COULD MOVE THE PROCESS QUICKLY ON RARE OCCASIONS NOTES ARNOLD REITZE A LAW PROFESSOR AT GEORGE WASHINGTON UNIVERSITY THE COURT HAS ACTED ON A CASE LITERALLY WITHIN A MATTER OF DAYS BUT FOR THAT TO HAPPEN THE ADMINISTRATION PROBABLY WOULD HAVE TO SHOW A PENDING NATIONAL EMERGENCY WHICH DOESN'T SEEM LIKELY IN THIS INSTANCE MR REITZE SAYS I DON'T KNOW THAT THIS FACT THAT SOME POLITICIANS IN OTHER COUNTRIES MIGHT GET UPSET IS ENOUGH EVEN THE CLINTON ADMINISTRATION ISN'T BETTING ON A QUICK REVIEW A SENIOR US OFFICIAL SAID THE ADMINISTRATION DOESN'T EXPECT ITS APPEAL TO BE HEARD UNTIL SEPTEMBER AT THE EARLIEST AND THEN THE OFFICIAL SAID IT COULD TAKE SOME WEEKS FOR A DECISION JUDGE RICHEY A 69YEAROLD NIXON APPOINTEE WHO ONCE SAID IN A SPEECH THAT DISTRICT COURTS MUST SAY WHAT THE LAW IS EVEN IF THE LAW IS UNPOPULAR PROVIDED SOME POLITICAL COVER FOR THE CLINTON ADMINISTRATION IN HIS DECISION THE COURT NOTES THAT THIS AGREEMENT WAS NEGOTIATED BY PRESIDENT BUSH AND THIS LAWSUIT SHOULD NOT BE CONSTRUED AS A FAILURE OF THE PRESENT ADMINISTRATION THE DECISION TOOK THE WHITE HOUSE BY SURPRISE BY LATE AFTERNOON TOP WHITE HOUSE OFFICIALS HADN'T YET BEEN ABLE TO MEET AND DISCUSS HOW TO DEAL WITH THE SETBACK SHORTLY BEFORE DINNERTIME THEY HELD A PRESS BRIEFING WITH MR KANTOR WHO TRIED TO ASSURE THE WORLD THAT THE TREATY WAS STILL ON TRACK TO RATIFICATION THE ADMINISTRATION'S BEST HOPE NOW OBVIOUSLY IS THAT THE COURTS AGREE TO MOVE QUICKLY THEN OVERTURN THE DECISION AND LET THE PROCESS RESUME BUT EVEN IN THAT CASE THE RULING COULD SET OFF POLITICAL FORCES THAT STILL POSE BIG PROBLEMS FOR MR CLINTON WHO HAS REGULARLY VOICED HIS SUPPORT FOR THE TRADE PACT EVEN AS HIS ADMINISTRATION NEGOTIATES SIDE AGREEMENTS WITH MEXICO AND CANADA TO BOLSTER THE ENVIRONMENTAL AND LABOR PROVISIONS FOR ONE THING THE RULING'S WARNINGS ON THE ENVIRONMENTAL IMPACT OF THE TRADE DEAL ARE LIKELY TO GIVE ADDED AMMUNITION TO FOES OF THE PACT EVEN BEFORE THE RULING THE TRADE AGREEMENT WAS IN TROUBLE ESPECIALLY IN THE HOUSE WHERE MANY OF THE 110 FRESHMAN LAWMAKERS CAMPAIGNED AGAINST IT COMMERCE SECRETARY RON BROWN CALCULATES THAT A THIRD OF THE HOUSE WAS ADAMANTLY VEHEMENTLY UNEQUIVOCALLY OPPOSED TO THE AGREEMENT ONETHIRD WAS UNEQUIVOCALLY FOR IT AND ONETHIRD WAS UNDECIDED BUT A STRING OF LAWMAKERS HAVE SAID THAT IF THE VOTE WERE HELD NOW THE AGREEMENT WOULD GO DOWN TO DEFEAT DEMOCRATIC REP ROBERT MATSUI OF CALIFORNIA LEADER OF PRONAFTA LAWMAKERS IN THE HOUSE CALLS THE RULING A SHOCKING DEVELOPMENT HE ADDS THAT WE CAN'T HAVE TRADE AGREEMENTS SUBJECT TO ENVIRONMENTAL LAWS LIKE THIS AND SEN MAX BAUCUS OF MONTANA CHAIRMAN OF THE ENVIRONMENTAL AND PUBLIC WORKS COMMITTEE SAYS THE RULING MEANS NAFTA IS DEAD ON ARRIVAL WITHOUT STRONG ENVIRONMENTAL SIDE AGREEMENTS BUT SOME LAWMAKERS FROM BOTH PARTIES ARGUE THAT NAFTA ACTUALLY COULD BENEFIT FROM A DELAY MAJORITY LEADER RICHARD GEPHARDT THE MOST INFLUENTIAL HOUSE MEMBER ON TRADE MATTERS AND A NAFTA SKEPTIC SAYS THE ADMINISTRATION MUST FOCUS ON GETTING TOUGH SIDE AGREEMENTS WHETHER THEY'RE EARLY OR LATE BUT FOR THE MOST PART NAFTA OPPONENTS WERE REJOICING I'M ENCOURAGED BY THIS DECISION AS IT IS CLEARLY ONE MORE IMPEDIMENT TO APPROVAL SAYS SEN HOWARD METZENBAUM AN OHIO DEMOCRAT THE RULING LEAVES IN TATTERS THE ADMINISTRATION'S STRATEGY OF DIVIDING THE ENVIRONMENTAL OPPOSITION BY TRYING TO WIN THE SIERRA CLUB'S SUPPORT FOR THE PACT AS ONE OF THREE GROUPS THAT BROUGHT THE SUIT THE OTHERS WERE THE PUBLIC CITIZEN ADVOCACY GROUP AFFILIATED WITH RALPH NADER AND THE FRIENDS OF THE EARTH ENVIRONMENTAL ORGANIZATION THE SIERRA CLUB SEEMS TO SHOW THAT ITS ALLEGIANCE TO THE ANTINAFTA FORCES IS GREATER THAN EVER THIS IS A DEFINING MOMENT FOR THE FUTURE OF TRADE AGREEMENTS CROWS MICHAEL MCCLOSKEY THE SIERRA CLUB'S CHAIRMAN INDEED ONE OF THE ENVIRONMENTAL GROUPS THAT HAD SAID IT WOULD SUPPORT NAFTA THE NATIONAL AUDUBON SOCIETY PRAISED THE RULING MR AHO THE TRADE ANALYST FOR THE COUNCIL ON FOREIGN RELATIONS SAYS THE ADMINISTRATION WOULD HAVE TO RELY ON OTHER ENVIRONMENTAL GROUPS TO LOBBY FOR THE ACCORD BUT MOST OF THEM ARE HOLDING BACK UNTIL THEY SEE WHETHER THE ADMINISTRATION CAN PERSUADE MEXICO AND CANADA TO ACCEPT PROVISIONS THAT WOULD ALLOW THE US TO IMPOSE SANCTIONS IF THOSE NATIONS DON'T ENFORCE ENVIRONMENTAL AND LABOR LAWS BOTH MEXICO AND CANADA HAVE REJECTED THOSE PROPOSALS AS INFRINGEMENTS ON THEIR SOVEREIGNTY AND ARE UNLIKELY TO MAKE CONCESSIONS SO LONG AS THE US CAN'T OFFER ASSURANCES THAT IT WILL APPROVE THE AGREEMENT ANYTIME SOON ROBERT HORMATS A VICE CHAIRMAN AT GOLDMAN SACHS & CO AND A FORMER US TRADE NEGOTIATOR WARNS THAT IF JUDGE RICHEY'S RULING STANDS IT COULD BE USED AS A PRECEDENT FOR PRESSING ENVIRONMENTAL CONCERNS IN OTHER NEGOTIATIONS YOU COULD USE AN ENVIRONMENTAL CHALLENGE FOR ARMSCONTROL AGREEMENTS OR WORLDTRADE TALKS MATT MOFFETT AND DIANNE SOLIS IN MEXICO CITY AND JOHN URQUHART IN OTTAWA CONTRIBUTED TO THIS ARTICLE 9307010139 930701 GOLDSMITH TO REDUCE NEWMONT HOLDINGS INVEST FURTHER IN GOLD NEW YORK SIR JAMES GOLDSMITH THE ANGLOFRENCH FINANCIER IS FURTHER PARING HIS HOLDINGS IN NEWMONT MINING CORP DENVER BY 85 MILLION SHARES TO 34 MILLION SHARES HE SAID HE INTENDS TO INVEST THE MAJORITY OF THE PROCEEDS OF THIS SALE IN PHYSICAL GOLD SIR JAMES SAID THAT HIS OFFSHORE INVESTMENT VEHICLE GENERAL ORIENTAL INVESTMENTS AND AN AFFILIATED COMPANY RIT CAPITAL PARTNERS HAD NOTIFIED THE SECURITIES AND EXCHANGE COMMISSION OF THEIR INTENTION TO SELL A COMBINED 97 MILLION SHARES IN NEWMONT MINING THROUGH A PUBLIC OFFERING RIT CAPITAL A UNIT OF ROTHSCHILDS INVESTMENT TRUST IN LONDON WILL OFFER 12 MILLION SHARES OF THE TOTAL SALOMON BROTHERS INC LAZARD FRERES & CO AND SMITH BARNEY HARRIS UPHAM AND CO A UNIT OF PRIMERICA CORP WILL MANAGE THE UNDERWRITING NEWMONT IS NORTH AMERICA'S BIGGEST GOLD MINING COMPANY A NEWMONT SPOKESMAN SAID THE SALE WOULD REDUCE SIR JAMES'S HOLDINGS TO 49 OF NEWMONT'S OUTSTANDING EQUITY ABOUT A 10TH OF HIS ORIGINAL STAKE THE BILLIONAIRE FINANCIER HELPED TRIGGER A RALLY IN THE GOLD MARKET LAST SPRING WHEN HE ANNOUNCED THAT GENERAL ORIENTAL AND RIT CAPITAL HAD SOLD 68 MILLION NEWMONT SHARES OR 10 OF THE COMPANY TO FUND MANAGER GEORGE SOROS FOR 3950 A SHARE AND THAT HE HAD INVESTED A LARGE PORTION OF THE PROCEEDS IN PHYSICAL GOLD LESS THAN THREE WEEKS AFTER THAT SALE GENERAL ORIENTAL AND RIT ANNOUNCED THEY HAD SOLD A FURTHER 65 MILLION SHARES OR 95 OF NEWMONT IN A PRIVATE PLACEMENT WITH OVERSEAS INSTITUTIONAL INVESTORS IN BOTH SALES SIR JAMES REITERATED HIS INTENTION OF GRADUALLY REDUCING HIS FORMER CONTROLLING INTEREST IN NEWMONT AND TO INCREASINGLY REMOVE HIMSELF FROM ACTIVE MANAGEMENT OF INDUSTRIAL CONCERNS NEWMONT SHARES LOST 1 YESTERDAY TO CLOSE AT 5250 A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THAT IS STILL UP 44 FROM THE STOCK'S 52WEEK LOW OF 3650 9307010138 930701 AMSOUTH SIGNS DEFINITIVE PACT BIRMINGHAM ALA AMSOUTH BANCORP SAID IT SIGNED A DEFINITIVE AGREEMENT TO BUY FLORIDABANK IN JACKSONVILLE FLA IN A STOCK SWAP VALUED AT 271 MILLION THE BANKING COMPANY WHICH HAS PENDING ACQUISITIONS IN OTHER NORTHERN FLORIDA CITIES SAID IT WOULD EXCHANGE 04902 COMMON SHARE FOR EACH FLORIDABANK SHARE THE ACQUISITION IS EXPECTED TO BE COMPLETED BY THE MIDDLE OF NEXT YEAR 9307010137 930701 BUSINESS BRIEF SERVAM CORP SERVICE AMERICA UNIT WINS APPROVAL OF REORGANIZATION SERVICE AMERICA CORP STAMFORD CONN SAID THE US BANKRUPTCY COURT IN BRIDGEPORT APPROVED ITS PLAN OF REORGANIZATION ENABLING IT TO EMERGE FROM BANKRUPTCY PROTECTION FROM CREDITORS IN 15 TO 30 DAYS SERVICE AMERICA A FOODSERVICE CONCERN OWNED BY SERVAM CORP FILED FOR PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE EIGHT MONTHS AGO AS PART OF THE REORGANIZATION PLAN SERVICE AMERICA AGREED TO GIVE A MAJORITY INTEREST IN THE COMPANY TO GENERAL ELECTRIC CAPITAL CORP A FINANCIALSERVICES UNIT OF GENERAL ELECTRIC CO FAIRFIELD SERVICE AMERICA PROVIDES VENDING DINING AND RECREATIONAL FOODSERVICE MANAGEMENT IN 42 STATES WASHINGTON AND CANADA AND HAS ANNUAL SALES OF ABOUT 900 MILLION UNDER TERMS OF THE PLAN GE CAPITAL WILL CONTINUE TO PROVIDE A 151 MILLION TERM LOAN AND 70 MILLION REVOLVINGCREDIT LINE 9307010136 930701 TECHNOLOGY & MEDICINE EPA CHIEF SAYS DOCTOR WILL GET PESTICIDE POST WASHINGTON ENVIRONMENTAL PROTECTION AGENCY ADMINISTRATOR CAROL BROWNER SAID PRESIDENT CLINTON PLANS TO NAME CALIFORNIA PEDIATRICIAN LYNN GOLDMAN TO HEAD THE EPA'S OFFICE OF PREVENTION PESTICIDES AND TOXIC SUBSTANCES THE ANNOUNCEMENT WHICH WAS MADE IN A SPEECH BEFORE THE NATIONAL PRESS CLUB HERE COMES THREE DAYS AFTER THE RELEASE OF A NATIONAL ACADEMY OF SCIENCES REPORT CALLING FOR STRICTER REGULATION OF HOW PESTICIDES AFFECT CHILDREN DR GOLDMAN IS HEAD OF THE DIVISION OF ENVIRONMENTAL AND OCCUPATIONAL DISEASE CONTROL FOR CALIFORNIA'S DEPARTMENT OF HEALTH SERVICES IN HER SPEECH MS BROWNER SAID THE EPA WOULD FOLLOW UP ON THE REPORT'S RECOMMENDATIONS BY INCREASING THE NUMBER OF TESTS FOR HEALTH RISKS LINKED TO PESTICIDES AND RESUMING THE COLLECTION OF DATA ON PESTICIDE POISONING FROM HOSPITAL EMERGENCY ROOMS A PRACTICE HALTED DURING THE REAGAN ADMINISTRATION SHE ALSO SAID THE ADMINISTRATION IS DEVELOPING INITIATIVES TO IMPROVE PESTICIDE REGULATION INCLUDING THROUGH LEGISLATION BUT THAT PROCESS ISN'T LIKELY TO PROGRESS AT A SIGNIFICANT PACE UNTIL AFTER THE EPA JOB IS FILLED THE SENATE MUST CONFIRM THE NOMINATION 9307010135 930701 ISRAEL WILL BE INCLUDED IN KPMG PEAT DIRECTORY NEW YORK KPMG PEAT MARWICK SAID IT WILL INCLUDE ISRAEL AS A PERMANENT ENTRY IN ITS 1994 INTERNATIONAL DIRECTORY OF FIRM OFFICES AND AFFILIATES THE MOVE REVERSES A PREVIOUS PRACTICE THAT WAS CRITICIZED IN A LETTER TO THE SIMON WIESENTHAL CENTER A HUMANRIGHTS GROUP IN LOS ANGELES JON MADONNA CHAIRMAN OF THE ACCOUNTING FIRM SAID PEAT IS COMMITTED TO PURSUING A FORMAL REPRESENTATION IN ISRAEL WITH A SENSE OF URGENCY THE CENTER HAD COMPLAINED THAT PEAT WASN'T LISTING ITS ISRAEL AFFILIATE TEL AVIVBASED KESSELMAN & KESSELMAN IN ITS DIRECTORY BECAUSE OF THE ARAB BOYCOTT OF COMPANIES DOING BUSINESS IN ISRAEL PEAT HAS DENIED THIS ACCUSATION BUT IF A CLIENT WANTED TO KNOW WHICH FIRM HANDLED PEAT'S WORK IN ISRAEL THE CLIENT GOT A FREESTANDING PAGE LABELED OPTIONAL INSERT FOR THE DIRECTORY IN THE LETTER MR MADONNA SAID PEAT WAS DISCUSSING AN EXCLUSIVE RELATIONSHIP WITH KESSELMAN & KESSELMAN IN ISRAEL THAT COULD TAKE SOME TIME TO CONCLUDE THE ISRAELI FIRM ALSO DOES WORK FOR OTHER MAJOR US ACCOUNTING FIRMS THERE AND WOULD HAVE TO SEVER ITS RELATIONSHIPS WITH THEM IN ORDER TO REPRESENT PEAT ALONE THE OTHER FIRMS DON'T LIST ISRAEL IN THEIR DIRECTORIES 9307010134 930701 INTERNATIONAL TARNISHED JAPANESE POLITICIANS BLAME WARPED ELECTION RULES FOR THEIR WOES BY JACOB M SCHLESINGER AND CLAY CHANDLER STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPANESE POLITICIANS HIPDEEP IN SCANDAL ARE CURRENTLY OBJECTS OF CONTEMPT YET THE FLAWS AREN'T IN THE POLITICIANS THEMSELVES THEY PLEAD BUT IN THE SCREWBALL ELECTION PROCESS JAPAN'S PERVERSE ELECTORAL SYSTEM THE ONLY ONE IN THE WORLD THAT SO CLEARLY PITS MEMBERS OF THE SAME PARTY AGAINST EACH OTHER TRANSFORMS EVEN SAINTS TO SCOUNDRELS CRITICS SAY IT ALSO WEAKENS LEADERSHIP AND BLOCKS MEANINGFUL POLICY DEBATE A BITTER SQUABBLE OVER HOW TO REJIGGER JAPAN'S QUIRKY VOTING RULES THE SOCALLED MULTISEAT MEDIUMSIZED DISTRICT ELECTORAL SYSTEM IS WHAT TRIGGERED THE DOWNFALL OF PRIME MINISTER KIICHI MIYAZAWA'S GOVERNMENT IN JUNE POLITICAL REFORM WILL LIKELY DOMINATE THE COMING CAMPAIGN AND JULY 18 NATIONAL ELECTIONS DIRTY MONEY IS THE INEVITABLE CONSEQUENCE OF THE MULTIMEMBER SYSTEM ARGUES AN OFFICIAL AT KEIDANREN JAPAN'S BIG BUSINESS LOBBYING GROUP UNTIL WE CHANGE THE SYSTEM THE OFFICIAL SAYS WE WON'T SUCCEED IN CHANGING THE BEHAVIOR OF THE POLITICIANS THEMSELVES WHILE POLITICAL CORRUPTION AND CRIES FOR REFORM HAVE INTENSIFIED OVER THE PAST FIVE YEARS BOTH ARE AS OLD AS THE CURRENT ELECTORAL SYSTEM ITSELF ACCORDING TO ONE SCHOLARLY ACCOUNT A FAMOUS WRITER REMARKED 60 YEARS AGO THE LEADER OF A PARTY IN OUR COUNTRY MUST HAVE FIVE QUALIFICATIONS ONE TO FOUR ARE MONEY AND THE FIFTH ONE IS POLITICAL ABILITY BRIBES FROM A FERTILIZER COMPANY BROUGHT DOWN THE GOVERNMENT IN 1948 KICKBACKS FROM SHIPBUILDERS SHADOWED THE LIBERAL DEMOCRATIC PARTY AT THE TIME OF ITS FORMATION IN 1955 BEFORE THE CURRENT CRISIS THE MOST SERIOUS ATTEMPT TO PURIFY THE SYSTEM FOLLOWED THE 1976 LOCKHEED BRIBERY SCANDAL WHEN THE GOVERNMENT ADOPTED STRICT LAWS LIMITING CAMPAIGN PRACTICES POLITICAL CONTRIBUTIONS AND SPENDING DURING CAMPAIGN SEASON THE GOVERNMENT EVEN POSTS SIGNS IN SUBWAYS REMINDING CITIZENS NOT TO TAKE MONEY FROM POLITICIANS BUT MANY EXPERTS SAY THOSE MEASURES HAVE BEEN INEFFECTIVE BECAUSE THE ELECTORAL SYSTEM STILL REQUIRES CANDIDATES TO RAISE AND SPEND LARGE AMOUNTS OF MONEY TO CAMPAIGN LARGELY ON FAVORS AND NOT ISSUES IN THE US CONGRESSIONAL DISTRICTS SEND A SINGLE REPRESENTATIVE TO WASHINGTON IN JAPAN SOME PARLIAMENTARY DISTRICTS SEND AS MANY AS FIVE REPRESENTATIVES TO THE NATIONAL DIET IN TOKYO OTHER COUNTRIES HAVE MULTISEAT DISTRICTS AS WELL BUT IN MOST VOTERS CAST BALLOTS FOR A PARTY WHICH IS THEN ALLOTTED SEATS IN PROPORTION TO ITS SHARE OF THE TOTAL VOTES JAPANESE VOTERS BY CONTRAST VOTE FOR A SINGLE CANDIDATE FROM THE TOTAL FIELD RUNNING IN THE DISTRICT THE TOP THREE OR FOUR OR FIVE VOTE GETTERS WIN THE ELECTION BECAUSE PARTIES OFTEN FIELD MORE THAN ONE CANDIDATE IN A DISTRICT THAT MEANS CONTENDERS FROM THE SAME PARTY END UP RUNNING AGAINST EACH OTHER JAPANESE POLITICIANS WIN WITH A PERSONAL VOTE NOT A PARTY VOTE SAYS CHUO UNIVERSITY'S STEVEN R REED A SPECIALIST IN JAPAN'S ELECTORAL SYSTEM VOTERS MIGHT FEEL THE LDP IS A HORRIBLE PARTY BUT MY GUY SENT ME A CARD EVERY NEW YEAR'S AND A NICE WEDDING PRESENT SO I VOTE FOR HIM THE LDP ISN'T REALLY A PARTY BUT A COALITION OF FORMALLY DESIGNATED FACTIONS INDEED JAPAN'S MOST INTENSE CAMPAIGN BATTLES ARE FOUGHT WHERE MEMBERS OF RIVAL LDP FACTIONS SLU IT OUT IN THE SAME DISTRICT THE PARTY'S CAPACITY FOR BOLD ACTION IS HAMSTRUNG BY THE FACTION SYSTEM AS TOP OFFICIALS NEVER HAVE THE LOYALTY OF THE TOTAL PARTY CABINET POSTS AND EVEN THE PRIME MINISTERSHIP HAVE TO BE ROTATED AMONG THE FACTIONS TO KEEP THE FRACTIOUS COALITION INTACT WHAT'S MORE THE SYSTEM HAS STUNTED OPPOSITION PARTIES' ABILITY TO CHALLENGE THE LDP THE SOCIALIST PARTY CAN USUALLY PICK UP ONE SEAT IN EACH DISTRICT BY RUNNING SINGLE CANDIDATES TO WIN A MAJORITY IN THE DIET THE SOCIALISTS WOULD HAVE TO RUN MULTIPLE CANDIDATES BUT THAT WOULD THREATEN SOME PARTY INCUMBENTS THERE'S NO MEANINGFUL DEBATE BETWEEN THE OPPOSITION AND THE GOVERNING PARTIES SAYS TAKESHI SASAKI A PROFESSOR OF POLITICAL SCIENCE AT TOKYO UNIVERSITY HOW DID JAPAN END UP WITH THIS CRAZY SYSTEM SOME HISTORIANS SAY THE SYSTEM'S FOUNDERS ACTUALLY WANTED IT THIS WAY IN 1925 WHEN JAPAN WAS ADOPTING UNIVERSAL MALE SUFFRAGE GOVERNMENT OFFICIALS FEARED MASS IDEOLOGICAL MOVEMENTS SUCH AS COMMUNISM AND TRIED TO CREATE AN ELECTORAL PROCESS THAT WOULD WEAKEN SUCH FORCES BY MAKING ADVOCATES RUN AGAINST EACH OTHER THE POWERFUL BUREAUCRATS WERE ALSO CONCERNED ABOUT POLITICIANS TAKING OVER AND CREATED A SYSTEM DESIGNED TO KEEP THEM DIVIDED AND WEAK THE PROBLEM WITH TRYING TO SORT OUT THIS MESS IS THAT INCUMBENTS DON'T WANT TO TOSS OUT THE SYSTEM THAT PUT THEM IN OFFICE SEVERAL ALTERNATIVES ARE NONETHELESS UNDER CONSIDERATION INCLUDING A USSTYLE SINGLESEAT DISTRICT SYSTEM EVEN THOUGH AMERICANS ALSO OFTEN COMPLAIN OF EXPENSIVE CAMPAIGNS AND POLITICAL GRIDLOCK IN JAPAN MANY ARE WILLING TO TAKE THE GAMBLE THIS STALEMATED SYSTEM SHOULD BE CHANGED SAYS MR SASAKI NO CHANGE IS THE REAL RISK 9307010133 930701 BUSINESS BRIEF RODMAN & RENSHAW CAPITAL GROUP CREDIT AGRICOLE TO ACQUIRE LONDON FUTURES OPERATIONS RODMAN & RENSHAW CAPITAL GROUP INC SAID IT WILL SELL ITS LONDONBASED FUTURES AND OPTIONS BUSINESS TO AN AFFILIATE OF CREDIT AGRICOLE THE BIG FRENCH BANKING FIRM TERMS WEREN'T DISCLOSED THE CHICAGO BROKERAGE FIRM SAID IT WAS SELLING THE BUSINESS WHICH IT STARTED IN 1990 IN ORDER TO USE THE CAPITAL IN OTHER AREAS IN ADDITION THE LONDON ORGANIZATION FIT WELL WITH CREDIT AGRICOLE'S BUSINESS STRATEGY SAID RODMAN RODMAN WILL RECORD A GAIN FROM THE SALE ACCORDING TO NORMAN MAINS PRESIDENT AND CHIEF OPERATING OFFICER CITING TERMS OF THE SALE AGREEMENT HOWEVER HE SAID HE COULDN'T PROVIDE SPECIFICS THE SALE IS AWAITING REGULATORY APPROVAL MR MAINS SAID AND SHOULD BE COMPLETED IN LATE JULY OR EARLY AUGUST 9307010132 930701 INTERNATIONAL ALLIEDLYONS DEAL RETURNS CHATEAU LATOUR TO FRENCH PARIS CHATEAU LATOUR THE PRESTIGIOUS WINE MAKER HAS RETURNED TO FRENCH OWNERSHIP AFTER MORE THAN 30 YEARS IN THE HANDS OF BRITISH FOOD AND BEVERAGE GROUP ALLIEDLYONS PLC ALLIEDLYONS SAID IT SOLD ITS 932 STAKE IN SOCIETE CIVILE DU VIGNOBLE DE CHATEAU LATOUR TO ARTEMIS SA A HOLDING COMPANY CONTROLLED BY FRENCH ENTREPRENEUR FRANCOIS PINAULT ALLIEDLYONS SAID THE TRANSACTION VALUED ALL OF CHATEAU LATOUR AT 735 MILLION FRENCH FRANCS 1293 MILLION AFTER PAYMENT OF A DIVIDEND OF 20 MILLION FRANCS SOURCES CLOSE TO THE FRENCH SIDE HOWEVER SAID ARTEMIS VALUES THE TRANSACTION AT ABOUT 690 MILLION FRANCS LATOUR WHICH PRODUCES UNDER THE MEDOC APPELLATION HAS ANNUAL OUTPUT OF 350000 BOTTLES IT IS CONSIDERED ONE OF THE PREMIER BORDEAUX WINES HOWEVER THE SALE COMES AT A TIME OF SKIDDING WINE CONSUMPTION AND FALLING PRICES ALLIEDLYONS SAID THE SALE IS PART OF ITS RATIONALIZATION OF WINE ACTIVITIES THE COMPANY ALSO HAS SOLD A GERMAN WINE BUSINESS AND USBASED IMPORTERS FREDERICK WILDMAN AN OFFICIAL SAID ALLIEDLYONS REMAINS COMMITTED TO OUR SUBSTANTIAL STAKE IN THE CALIFORNIA PREMIUM WINE INDUSTRY CHATEAU LATOUR IS THE FIRST WINE INTEREST ACQUIRED BY ARTEMIS WHICH IS THE PARENT COMPANY OF PINAULTPRINTEMPS SA FRANCOIS PINAULT'S DISTRIBUTION GROUP ARTEMIS IS MADE UP OF MR PINAULT'S HOLDINGS THAT DON'T INCLUDE DISTRIBUTION INCLUDING A LARGE JUNKBOND PORTFOLIO 9307010131 930701 MONEY MARKET YIELDS CLIMB IN LATEST WEEK NEW YORK YIELDS ON TAXABLE MONEY MARKET MUTUAL FUNDS ROSE IN THE LATEST WEEK BUT NOT ENOUGH TO KEEP INVESTORS FROM WITHDRAWING BILLIONS OF DOLLARS IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD INCREASED TO 267 FROM 265 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS ASSETS OF 598 TAXABLE FUNDS FELL 984 BILLION TO 46915 BILLION THE NEWSLETTER REPORTED INSTITUTIONAL INVESTORS ACCOUNTED FOR 653 BILLION OF THE OUTFLOW THE AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 60 DAYS THE AVERAGE TAXFREE SEVENDAY COMPOUND YIELD ROSE TO 184 FROM 172 THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 256 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 267 FOR SOMEONE PAYING 31 IN TAXES ASSETS OF 323 TAXEXEMPT FUNDS FELL 157 BILLION TO 9904 BILLION ACCORDING TO MONEY FUND REPORT AVERAGE MATURITY LENGTHENED BY THREE DAYS TO 55 DAYS 9307010130 930701 TECHNOLOGY & MEDICINE IBM'S UK UNIT REGROUPS SALES FORCE TO BOOST PROFIT LONDON INTERNATIONAL BUSINESS MACHINES CORP'S BRITISH UNIT MOVED TO PLACE ADDITIONAL PRESSURE ON ITS SALES FORCE HERE IN AN EFFORT TO RETURN THE UNIT TO PROFITABILITY IBM UNITED KINGDOM LTD SAID ITS SALES FORCE WILL HAVE GREATER AUTONOMY TO MEET CUSTOMERS' NEEDS UNDER A RECENT REORGANIZATION THAT SEPARATED SALES OPERATIONS INTO INDIVIDUAL DIVISIONS EACH CATERING TO A DIFFERENT SEGMENT OF THE MARKET SUCH AS RETAIL CUSTOMERS OR MANUFACTURERS HOWEVER THE COMPANY THREATENED TO CLOSE OR SHARPLY REVAMP THOSE SALES DIVISIONS THAT FAIL TO MEET PROFIT TARGETS THE MOVE WAS WIDELY EXPECTED AND EXPANDS MEASURES THE COMPUTER MAKER HAS TAKEN TO RETURN TO PROFITABILITY LAST YEAR IBM UK HAD A LOSS OF 616 MILLION 932 MILLION ON SALES OF 375 BILLION THE MOST RECENT FINANCIAL RESULTS AVAILABLE AS PREVIOUSLY REPORTED IBM UK ALSO IS SHARPLY REDUCING STAFF IT CUT 1400 EMPLOYEES EARLIER THIS YEAR AND HAS OFFERED VOLUNTARY SEVERANCE PACKAGES TO AN ADDITIONAL 600 WORKERS WHO HAVE UNTIL MONDAY TO RESPOND THAT WOULD LEAVE THE UNIT WITH ABOUT 11900 EMPLOYEES COMPARED WITH A PEAK OF 18600 EIGHT YEARS AGO 9307010129 930701 MARKETING & MEDIA GILLETTE CO'S LAUNCH OF SENSOREXCEL LINE IS PLANNED FOR EUROPE NEW YORK GILLETTE CO PLANS A EUROPEAN LAUNCH IN SEPTEMBER FOR ITS SECONDGENERATION SENSOR RAZOR THE COMPANY SAID THE NEW LINE SENSOREXCEL WILL INCLUDE BLADES WITH ELASTIC STRIPS OR MICROFINS INTENDED TO IMPROVE SHAVING GILLETTE SAID IT WILL INTRODUCE THE RAZOR FIRST IN EUROPE LATER IN CANADA AND IN THE US AND ELSEWHERE NEXT YEAR THE COMPANY SAID IT HAS ALLOCATED 100 MILLION FOR MARKETING SENSOREXCEL DURING ITS FIRST YEAR IN EUROPE AND CANADA ADDING THAT IT WOULD DISCUSS ITS US MARKETING PLAN ONCE A SPECIFIC DATE HAS BEEN ANNOUNCED FOR THE PRODUCT'S US LAUNCH JOHN DARMAN BUSINESS DIRECTOR OF NEW PRODUCTS SAID GILLETTE IS DEBUTING THE RAZOR IN EUROPE BECAUSE 70 OF THE BOSTONBASED COMPANY'S REVENUE COMES FROM OUTSIDE THE US SOME ANALYSTS HAVE QUESTIONED THE DECISION TO CREATE A NEW SENSOR PRODUCT WHEN THE ORIGINAL HAS SOLD STRONGLY WITH MORE THAN 12 BILLION IN SALES SINCE ITS 1989 INTRODUCTION MR DARMAN SAID THE COMPANY SEEKS TO STAY COMPETITIVE THROUGH PRODUCT IMPROVEMENTS AND BY INCREASING THE PACE OF TECHNOLOGICAL ADVANCES 9307010128 930701 VISTA RESOURCES 2ND QUARTER ATLANTA VISTA RESOURCES INC EXPECTS TO REPORT SECONDQUARTER REVENUE AND EARNINGS AT LEAST 20 HIGHER THAN THE YEAREARLIER QUARTER THE COMPANY SAID IN THE 1992 SECOND QUARTER THE COMPANY EARNED 15 MILLION OR 40 CENTS A SHARE ON REVENUE OF 323 MILLION VISTA RESOURCES IS A PRODUCER OF COWHIDE AND SHEEPSKIN LEATHERS AND IS ALSO AN INSURANCE UNDERWRITER LEATHER SALES GREW AN ESTIMATED 33 DURING THE QUARTER TO AROUND 30 MILLION SAID SAMUEL W NORWOOD III PRESIDENT AND CHIEF EXECUTIVE OFFICER 9307010127 930701 WHO'S NEWS MITCHELL ENERGY & DEVELOPMENT CORP MITCHELL ENERGY & DEVELOPMENT CORP THE WOODLANDS TEXAS J TODD MITCHELL WAS NAMED TO THE BOARD OF THIS ENERGY AND REAL ESTATE COMPANY INCREASING THE BOARD'S SIZE TO 13 MEMBERS MR MITCHELL 34 IS CURRENTLY PRESIDENT OF DISCOVERY BAY CO A PETROLEUM INDUSTRY SOFTWARE COMPANY OF HOUSTON WITH MR MITCHELL'S APPOINTMENT THE NUMBER OF BOARD MEMBERS BELONGING TO THE MITCHELL FAMILY IS THREE INCLUDING GEORGE P MITCHELL CHAIRMAN AND PRESIDENT AND M KENT MITCHELL PRESIDENT AND CHIEF EXECUTIVE OF BALD HEAD ISLAND MANAGEMENT INC BALD HEAD NC 9307010126 930701 BUSINESS BRIEF MARATHON OIL CO REFINERY IN INDIANAPOLIS TO BE TEMPORARILY IDLED MARATHON OIL CO SAID IT WILL TEMPORARILY IDLE ITS 50000 BARRELADAY INDIANAPOLIS REFINERY CITING UNFAVORABLE PLANT ECONOMICS AND INCREASING REQUIREMENTS FOR ENVIRONMENTAL SPENDING THE HOUSTONBASED COMPANY SAID IT WILL CONTINUE TO OPERATE THE INDIANAPOLIS REFINED PRODUCTS STORAGE AND TERMINAL FACILITIES TO MAINTAIN NECESSARY SUPPLIES OF GASOLINE IN THE AREA MARATHON WHICH WAS SPUN OFF FROM USX CORP EXPECTS THE IDLING TO BEGIN ABOUT OCT 1 AND BE COMPLETED BY YEAR END THE INDIANAPOLIS FACILITY EMPLOYS ABOUT 255 WORKERS THE COMPANY SAID THE IDLING WON'T HAVE AN IMPACT ON ITS SUPPLY OF TRANSPORTATION FUELS TO ITS INDIANA AND MIDWEST MARKETING AREAS MARATHON HAS REFINERIES IN MICHIGAN LOUISIANA ILLINOIS AND TEXAS WITH COMBINED CAPACITY OF 570000 BARRELS 9307010125 930701 CERIDIAN GETS CREDIT FACILITY MINNEAPOLIS CERIDIAN CORP SAID IT HAS SECURED A NEW 35 MILLION REVOLVING CREDIT FACILITY TO REPLACE ONE THAT HAD BEEN USED PRIMARILY TO SUPPORT LETTERS OF CREDIT FOR TWO BUSINESSES THAT HAVE BEEN SOLD AUTOMATIC WAGERING AND EMPROS SYSTEMS INTERNATIONAL THE INFORMATION SERVICES CONCERN SAID IT WILL USE THE NEW FACILITY WHICH RUNS THROUGH MAY 1994 TO MEET THE NEEDS OF ITS US OPERATIONS THE FACILITY IS BEING PROVIDED BY A GROUP OF FIVE LENDERS LED BY BANK OF AMERICA 9307010124 930701 BUSINESS BRIEF ALLOU HEALTH & BEAUTY CARE INC EARNINGS INCREASED BY 62 IN FISCAL FOURTH QUARTER ALLOU HEALTH & BEAUTY CARE INC REPORTED A 62 EARNINGS GAIN IN THE FISCAL FOURTH QUARTER ON IMPROVED OPERATING EFFICIENCIES PARTICULARLY IN ITS NONPERISHABLE FOODDISTRIBUTION BUSINESS AND LOWER INTEREST COSTS FOR THE QUARTER ENDED MARCH 31 ALLOU BRENTWOOD NY POSTED NET INCOME OF 853545 OR 15 CENTS A SHARE UP FROM 527035 OR 12 CENTS A SHARE A YEAR EARLIER REVENUE OF THE HEALTH AND BEAUTY PRODUCTS DISTRIBUTOR ROSE 39 TO 408 MILLION DAVID SHAMILZADEH SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID WAREHOUSE AND DISTRIBUTION COSTS DECREASED TO 77 OF REVENUE FOR THE YEAR FROM 86 IN 1992 FOR THE QUARTER REVENUE FROM HEALTH AND BEAUTY PRODUCTS ROSE 27 AND FRAGRANCES ROSE 36 IN PART BECAUSE OF A GROWING CUSTOMER BASE REVENUE FROM THE NONPERISHABLE FOOD BUSINESS WHICH INCLUDES POPCORN TEAS AND COFFEES MORE THAN DOUBLED TO 61 MILLION IN THE YEAR NET ROSE NEARLY 60 TO 3 MILLION OR 60 CENTS A SHARE FROM 19 MILLION OR 50 CENTS A SHARE ON A 30 REVENUE INCREASE TO 1619 MILLION 9307010123 930701 WHO'S NEWS SONY CORP SONY CORP NEW YORK THIS CONSUMER ELECTRONICS AND ENTERTAINMENT GIANT NAMED RICHARD ROWE TO THE NEW POST OF PRESIDENT SONY MUSIC PUBLISHING WORLDWIDE MR ROWE 42 YEARS OLD HAS BEEN IN CHARGE OF SONY MUSIC PUBLISHING'S INTERNATIONAL DIVISION 9307010122 930701 SYNDICATOR CRAIG HALL ENDS CHAPTER 11 STATUS DALLAS REAL ESTATE SYNDICATOR CRAIG HALL EMERGED FROM CHAPTER 11 TUESDAY NEARLY 15 MONTHS AFTER A RESOLUTION TRUST CORP LAWSUIT FORCED HIM TO SEEK FEDERAL BANKRUPTCYLAW PROTECTION MR HALL HAD AGREED IN APRIL TO MAKE A 1025 MILLION PAYMENT TO THE RTC HIS BIGGEST CREDITOR BY AUG 5 TO SETTLE MORE THAN 300 MILLION IN CLAIMS AGAINST HIMSELF HALL FINANCIAL GROUP WHICH HE CONTROLS AND SEVERAL RELATED REAL ESTATE PARTNERSHIPS MR HALL DISCLOSED HIS PLANS FOR MAKING THAT PAYMENT DURING A FEDERAL BANKRUPTCY COURT HEARING KIDDER PEABODY & CO WILL PUT TOGETHER AN INVESTMENT GROUP TO LEND MR HALL 80 MILLION OF THE 1025 MILLION OWED THE RTC IN RETURN THE FEDERAL AGENCY WILL TURN 23 PROPERTIES FORMERLY OWNED BY HALL INVESTMENT GROUPS OVER TO A NEW ENTITY CONTROLLED BY KIDDER PEABODY MR HALL SAID HE WILL BE A PASSIVE MINORITY PARTNER IN THE VENTURE WHICH WILL SEEK TO MARKET BONDS BACKED BY THE NEW MORTGAGES IT WILL SEEK ON THE PROPERTIES KIDDER PEABODY AND ITS INVESTORS WOULD BE REPAID THROUGH PROCEEDS FROM PROPERTY OPERATIONS OR SECURITY SALES MR HALL SAID THE REMAINING 225 MILLION WILL COME FROM THE SALE OF PROPERTIES AND CASH COLLATERAL OR NEWLY RAISED CAPITAL FROM EXISTING PARTNERSHIPS SAID MR HALL WHO FOR THE LAST SEVEN YEARS HAS PRESIDED OVER THE DEMISE OF A FARFLUNG REAL ESTATE EMPIRE ONCE VALUED AT MORE THAN 3 BILLION 9307010121 930701 WHO'S NEWS TYSON FOODS INC TYSON FOODS INC SPRINGDALE ARK STEVEN G HANKINS 34YEAROLD FORMER DIRECTOR OF THIS POULTRY CONCERN'S MANAGEMENT INFORMATION SYSTEMS UNIT WAS NAMED VICE PRESIDENT OF THE UNIT MR HANKINS SUCCEEDS DAN SNYDER WHO RESIGNED TO PURSUE OTHER INTERESTS 9307010120 930701 TECHNOLOGY & MEDICINE CHIPSOFT PURCHASE OF MECA THWARTED BY ANTITRUST ISSUE BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL THE MERGER OF THE NATION'S TWO MOST POPULAR PERSONAL FINANCE SOFTWARE MAKERS CHIPSOFT INC AND MECA SOFTWARE INC CRASHED AFTER THE JUSTICE DEPARTMENT THREATENED TO CHALLENGE IT AS ANTICOMPETITIVE CHIPSOFT WITHDREW ITS 58 MILLION OFFER FOR RIVAL MECA SOFTWARE MARKETER OF ANDREW TOBIAS'S MANAGING YOUR MONEY PROGRAM CITING ANTITRUST OBJECTIONS CHIPSOFT HAD AGREED IN APRIL TO ACQUIRE MECA FOR 11625 A SHARE PLUS ASSOCIATED COSTS CHIPSOFT'S WITHDRAWAL SENT MECA SHARES PLUMMETING 38 OR 375 TO 625 IN NATIONAL OVERTHECOUNTER TRADING CHIPSOFT SHARES ALSO TRADED OTC ROSE 150 CENTS TO 1050 THE PROPOSED COMBINATION OF CHIPSOFT AND MECA WOULD HAVE GIVEN CHIPSOFT CONTROL OVER THE TWO MOST POPULAR BRANDS OF CONSUMER TAXPREPARATION SOFTWARE CAUSING CONSUMERS TO PAY HIGHER PRICES SAID ANNE K BINGAMAN A JUSTICE DEPARTMENT ATTORNEY A SPOKESWOMAN FOR CHIPSOFT SAID THE COMPANY BROKE OFF THE AGREEMENT AFTER IT WASN'T ABLE TO COME UP WITH AN ALTERNATIVE PROPOSAL THAT WOULD PASS MUSTER WITH THE JUSTICE DEPARTMENT CHIPSOFT CALLED MECA TUESDAY TO SAY THAT THE DEAL WAS OFF SHE SAID A CLAUSE IN THE AGREEMENT ALLOWED CHIPSOFT TO WITHDRAW ITS OFFER IN THE FACE OF ANY THREATENED GOVERNMENT ACTION THE JUSTICE DEPARTMENT HAD THREATENED TO FILE A CIVIL SUIT CHALLENGING THE ACQUISITION CHIPSOFT DISAGREED WITH THE JUSTICE DEPARTMENT OVER DEFINITIONS OF THE TAXPREPARATION SOFTWARE MARKET THE CHIPSOFT SPOKESWOMAN SAID THAT THE COMPANY HAD INCLUDED CALCULATORS STOREFRONT TAXPREPARERS AND PUBLIC ACCOUNTANTS IN ITS MARKET ESTIMATE THE JUSTICE DEPARTMENT'S DEFINITION SEEMED TO BE NARROWER SHE SAID PAUL HARRISON MECA'S CHIEF FINANCIAL OFFICER SAID THE FAIRFIELD CONN COMPANY WAS QUITE SHOCKED AND DISAPPOINTED BY THE GOVERNMENT'S OBJECTIONS WE DIDN'T REALLY THINK THIS TRANSACTION WAS A THREAT TO THE CONSUMER HE SAID ANALYSTS WEREN'T ENTIRELY SURPRISED BY THE DEAL'S COLLAPSE CHIPSOFT HAD DELAYED ITS TENDER OFFER IN RECENT WEEKS BECAUSE OF REQUESTS FOR ADDITIONAL INFORMATION FROM THE JUSTICE DEPARTMENT THE COMPANIES HAD ORIGINALLY HOPED TO COMPLETE THE TRANSACTION BY MIDMAY THE FACT IS CHIPSOFT WOULD HAVE CONTROLLED THE PRICING MARKET FOR TAXPREPARATION SOFTWARE SAID MICHAEL STANEK OF PIPER JAFFRAY CHIPSOFT'S 60 SHARE OF THE CONSUMER TAX SOFTWARE MARKET WOULD HAVE INCREASED TO AT LEAST 75 WITH THE ACQUISITION OF MECA ANALYSTS SAID 9307010119 930701 BUSINESS BRIEF FIRST COMMERCE CORP BANK TO BUY FIRST ACADIANA FOR 327 MILLION IN STOCK FIRST COMMERCE CORP SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE FIRST ACADIANA NATIONAL BANCSHARES A CLOSELY HELD BANK HOLDING COMPANY BASED IN OPELOUSAS LA UNDER THE TERMS OF THE PROPOSAL FIRST ACADIANA SHAREHOLDERS WILL RECEIVE FIRST COMMERCE COMMON SHARES VALUED AT 327 MILLION THE NUMBER OF FIRST COMMERCE SHARES THAT EACH WILL RECEIVE WILL DEPEND UPON THE MARKET PRICE OF THE STOCK AT THE TIME OF CLOSING FIRST COMMERCE A NEW ORLEANSBASED BANK HOLDING COMPANY SAID IT EXPECTED THE TRANSACTION TO BE COMPLETED DURING THE FOURTH QUARTER IF A DEFINITIVE AGREEMENT IS REACHED AND IF THE TRANSACTION IS APPROVED BY SHAREHOLDERS AND REGULATORY AGENCIES AND MEETS CERTAIN OTHER CONDITIONS 9307010118 930701 BUSINESS BRIEF BETHLEHEM STEEL CORP MODERNIZATION PLAN IS SET AT COST OF OVER 100 MILLION BETHLEHEM STEEL CORP BETHLEHEM PA SAID IT WILL SPEND MORE THAN 100 MILLION TO MODERNIZE FACILITIES AT ITS NEWLY ESTABLISHED BETHLEHEM STRUCTURAL PRODUCTS CORP SUBSIDIARY THE PROJECT WHICH HAD BEEN EXPECTED INVOLVES INSTALLING A CONTINUOUS CASTER AND LADLE REFINING FURNACE AND MODIFYING THE ROLLING MILL THE MODIFICATIONS ARE EXPECTED TO INCREASE PRODUCTIVITY REDUCE OPERATING COSTS AND IMPROVE QUALITY THE ANNOUNCEMENT FOLLOWS THE SIGNING OF A LABOR PACT WITH THE UNITED STEELWORKERS OF AMERICA COVERING ABOUT 3000 WORKERS AND OFFICE PERSONNEL AT STRUCTURAL PRODUCTS BETHFORGE INC AND CENTEC BETHFORGE IS A SEPARATE UNIT THAT MAKES FORGED ROLLS PRECISION CUSTOM FORGING AND PARTS FOR GENERATORS AND THE NUCLEAR POWER GENERATION INDUSTRY CENTEC IS A JOINT VENTURE WITH FRANCE'S CHAVANNAKETIN WHICH MAKES CAST ROLLS FOR THE METALWORKING INDUSTRY 9307010117 930701 NET DEBTOR POSITION OF US IN 1992 WAS AT A RECORD BY ALAN YONAN SPECIAL TO THE WALL STREET JOURNAL WASHINGTON TOTAL FOREIGN INVESTMENT IN THE US EXCEEDED US INVESTMENT ABROAD BY A RECORD 52133 BILLION AT THE END OF LAST YEAR GROWING FROM 36487 BILLION AT THE END OF 1991 THE COMMERCE DEPARTMENT SAID THE DEPARTMENT'S REPORT ALSO SHOWED THAT JAPAN SURPASSED THE UNITED KINGDOM AS THE LARGEST DIRECT INVESTOR IN US BUSINESSES IN 1992 BRITISH DIRECT INVESTMENT IN US ENTITIES IN 1992 FELL TO 9472 BILLION FROM 10037 BILLION A YEAR EARLIER WHILE JAPANESE DIRECT INVESTMENT ROSE TO 9674 BILLION FROM 929 BILLION THE LATEST FIGURES CONTINUE A TREND OF US INDEBTEDNESS TO THE REST OF THE WORLD THE US TURNED FROM A NET CREDITOR TO A NET DEBTOR IN 1987 OR 1989 DEPENDING ON HOW INVESTMENTS ARE MEASURED IN ITS REPORT THE DEPARTMENT SAID FOREIGN INVESTORS HELD 2525 TRILLION IN US ASSETS AT THE END OF LAST YEAR COMPARED WITH 2363 TRILLION AT THE END OF 1991 WHEN INVESTMENTS ARE VALUED AT THE CURRENT COST OF REPLACING PLANT EQUIPMENT AND OTHER TANGIBLE ASSETS US ASSETS ABROAD GREW TO 2003 TRILLION AT THE END OF 1992 FROM 1998 TRILLION AT THE END OF 1991 THE DEPARTMENT SAID THE INCREASE IN THE US NET DEBTOR POSITION LAST YEAR PRIMARILY REFLECTED LARGE NET CAPITAL INFLOWS INTO AMERICAN CORPORATE AND GOVERNMENT BONDS INCREASED PRICES IN THE US STOCK MARKET AND PRICE DECREASES IN SEVERAL LEADING FOREIGN MARKETS IN COMBINATION WITH THE DEPRECIATION OF SEVERAL MAJOR FOREIGN CURRENCIES AGAINST THE DOLLAR WHEN INVESTMENTS ARE VALUED AT THE CURRENT STOCKMARKET VALUE OF AN OWNER'S EQUITY THE US POSITION AS A NET DEBTOR NATION WIDENED TO 61148 BILLION AT THE END OF LAST YEAR FROM A REVISED 3964 BILLION AT THE END OF 1991 THE NETHERLANDS HAD THE THIRDLARGEST DIRECT INVESTMENT IN THE US RISING TO 6134 BILLION FROM 5936 BILLION CANADIAN DIRECT INVESTMENT IN THE US ROSE TO 39 BILLION FROM 373 BILLION WHILE GERMAN DIRECT INVESTMENT ROSE TO 2921 BILLION FROM 2861 BILLION US DIRECT INVESTMENT IN EUROPEAN COUNTRIES CLIMBED TO 23939 BILLION FROM 23325 BILLION DIRECT INVESTMENT IN BRITAIN FELL TO 7784 BILLION FROM 7807 BILLION DIRECT INVESTMENT IN JAPAN ROSE TO 2621 BILLION FROM 2494 BILLION DIRECT INVESTMENT IN LATIN AMERICA JUMPED TO 8886 BILLION FROM 7621 BILLION THE FIGURES FOR SPECIFIC REGIONS ARE BASED ON THE HISTORICAL COSTS OF INVESTMENTS 9307010116 930701 POLITICS & POLICY WHEN WISCONSIN GOVERNOR WIELDS PARTIAL VETO THE LEGISLATURE MIGHT AS WELL GO PLAY SCRABBLE BY DENNIS FARNEY STAFF REPORTER OF THE WALL STREET JOURNAL MADISON WIS WITH A GOVERNOR LIKE TOMMY THOMPSON WHO NEEDS A LEGISLATURE THAT ISN'T A RHETORICAL QUESTION HERE IN WISCONSIN ESPECIALLY TO LEGISLATORS NOW RUSHING TO PASS A STATE BUDGET THE AIR IS FILLED WITH THE HAMMERING AND SAWING OF COMPROMISES YET THE LAWMAKERS THEMSELVES HAVE THE LOOK OF CARPENTERS ONLY TOO AWARE THAT THEIR WORK THEIR INTRICATE ARABESQUES THEIR LEGISLATIVE FILIGREES CAN BE OBLITERATED WITH THE STROKE OF A PEN THEY'RE UP AGAINST DR NO THE GOVERNOR WHOSE POWER TO VETO SPENDING MEASURES IS ARGUABLY THE STRONGEST IN THE NATION AT A TIME WHEN A BELEAGUERED PRESIDENT CLINTON IS BEING URGED BY ADVISERS TO PUT THE FEAR OF GOD INTO HIS CONGRESSIONAL OPPONENTS TO REACH OUT AND HURT SOMEBODY GOV THOMPSON ILLUSTRATES JUST HOW FEARSOME AN EXPANDED VETO POWER CAN BE PRESIDENT CLINTON CAN ONLY ACCEPT OR REJECT SPENDING BILLS IN THEIR ENTIRETY GOV THOMPSON IN CONTRAST CAN SHATTER BILLS INTO FRAGMENTS THEN REASSEMBLE THE FRAGMENTS INTO WHOLLY NEW LEGISLATION NEVER DEBATED BY THE LEGISLATURE TO CRITICS HE IS AN ILLUSTRATION OF THE ARROGANCE OF POWER HE CAN VETO THOU SHALT NOT STEAL' INTO THOU SHALT STEAL' FUMES DAVE TRAVIS THE DEMOCRATIC MAJORITY LEADER OF THE WISCONSIN ASSEMBLY WHEN YOU TELL PEOPLE ON THE STREET THEY CAN'T BELIEVE IT BELIEVE IT THE WISCONSIN CONSTITUTION ALLOWS GOVERNORS TO VETO APPROPRIATIONS BILLS IN WHOLE OR IN PART AND COURTS HAVE HELD THAT IN PART MEANS JUST THAT IF SAY THE LEGISLATURE APPROPRIATES 5000000 GOV THOMPSON CAN VETO THE ZEROS TO MAKE THE APPROPRIATION 5 HE CAN VETO COMMAS SEMICOLONS PERIODS QUESTION MARKS AND DOLLAR SIGNS AND HE CAN VETO WORDS SHALT OR NOT OR WHOLE BATTALIONS OF WORDS AS THE SPIRIT MOVES HIM AND THAT ISN'T THE HALF OF IT AFTER HE FINISHES VETOING WORDS GOV THOMPSON CAN THEN COBBLE TOGETHER THE SURVIVING WORDS INTO WHOLE NEW SENTENCES AND NEW LAW NEVER DREAMED OF BY THE LEGISLATURE IN ONE PARTICULARLY STRIKING EXAMPLE THE LEGISLATURE PASSED SEVERAL UNRELATED APPROPRIATIONS MEASURES ONE WAS INTENDED TO TRANSFER MORE THAN 183 MILLION FROM THE GENERAL FUND TO THE LOTTERY FUND ANOTHER APPROPRIATED 10000 TO KEEP AN ICE RINK GOING STILL ANOTHER TRANSFERRED MONEY FROM A RACING FUND TO THE GENERAL FUND GOV THOMPSON STRIPPED THE ITEMS OF MOST OF THEIR WORDS AND SOME OF THEIR FIGURES THEN LIKE A SHOPPER AT A SUPERMARKET HE PICKED UP A FEW SURVIVING WORDS AND NUMBERS WHEN STRUNG TOGETHER THEY FORMED A BRANDNEW SENTENCE THAT REVERSED THE LEGISLATURE'S INTENT INSTEAD OF TRANSFERRING MONEY INTO THE LOTTERY FUND IT TRANSFERRED MONEY OUT OF THE LOTTERY FUND WE MIGHT AS WELL JUST GIVE HIM THE TELEPHONE BOOK AND LET HIM GO TO WORK SIGHS ASSEMBLY SPEAKER WALTE KUNICKI THE LEGISLATURE OF COURSE HAS THE RIGHT TO OVERRIDE THESE SOCALLED PARTIAL VETOES BUT GOV THOMPSON HAS ROLLED UP SOME 1300 BUDGETARY VETOES SINCE TAKING OFFICE IN 1987 AND GIVEN HIS SOLID REPUBLICAN SUPPORT THE LEGISLATURE HAS YET TO OVERRIDE HIM ONCE THE LEGISLATURE HAS BEEN TRYING TO GET A CONSTITUTIONAL AMENDMENT ON THE BALLOT THAT WOULD SCALE BACK MR THOMPSON'S VETO POWER TO THE LINEITEM VETO THAT MOST GOVERNORS HAVE BUT SINCE THE WISCONSIN SENATE SWITCHED TO REPUBLICAN CONTROL IN LAST FALL'S ELECTIONS THE CHANCES FOR GETTING THE PROVISION ON THE BALLOT ARE SLIM TO THE GOVERNOR'S PLEASURE WHY SHOULD ANY GOVERNOR GIVE UP POWER HE ASKS INCREDULOUSLY I MEAN GOOD LORD A RISING STAR IN THE NATIONAL GOP MR THOMPSON HAS EARNED A REPUTATION AS A CONSERVATIVE PROBLEMSOLVER ALTHOUGH HE SAYS HE HASN'T EVEN DECIDED WHETHER TO SEEK A THIRD TERM NEXT YEAR SOME DEMOCRATS HERE SPECULATE THAT HE'LL NOT ONLY DO THAT BUT TAKE HIS SHOW ON THE ROAD INTO THE 1996 GOP PRESIDENTIAL RACE REELECTION IS THE ONLY THING THAT STANDS BETWEEN HIM AND NEW HAMPSHIRE ASSERTS MR KUNICKI IN THAT TAXHATING STATE MR THOMPSON'S VETO RECORD WOULD LIKELY STAND HIM IN GOOD STEAD INDEED THE LANGUAGE HE USES IN DEFENDING IT NOW COULD BE TRANSFERRED TO A NATIONAL CAMPAIGN WITHOUT CHANGING A WORD AS THE GOVERNOR NOTES HIS RECENT DEMOCRATIC PREDECESSORS STARTED THE PARTIAL VETO PRACTICE ALBEIT ON A MUCH SMALLER SCALE AND WITH MORE LEGISLATIVE OPPOSITION ONE DEMOCRATIC PARTIAL VETO WAS OVERRIDDEN UNANIMOUSLY STILL IS THIS ANY WAY TO WRITE LEGISLATION A VETO OPPONENTS ARGUE IS INTENDED TO TAKE SOMETHING OUT OF A BILL NOT TO CREATE A NEW ONE THEORETICALLY MR THOMPSON COULD MAKE HIS VETOES STICK WITH THE SUPPORT OF AS FEW AS 12 OF WISCONSIN'S 132 LEGISLATORS A VETOSUSTAINING ONETHIRDPLUSONE MINORITY IN THE 33MEMBER STATE SENATE IN PRACTICE EVEN LEGISLATIVE OPPONENTS CONCEDE MR THOMPSON IS FAR TOO CANNY TO PUSH HIS POWERS THAT FAR HERE IN MADISON A CITY NAMED FOR THE FOUNDING FATHER WHO DEVISED THE US SYSTEM OF CHECKS AND BALANCES THE MAIN CHECK ON MR THOMPSON'S POWER MAY BE MR THOMPSON HIMSELF WHAT DEFINES THE LIMITS FOR HIM IS HIS OWN POLITICAL SENSE OF HOW FAR HE CAN GO OBSERVES POLITICAL SCIENTIST CHARLES O JONES OF THE UNIVERSITY OF WISCONSIN MR THOMPSON WHO PARTLY WORKED HIS WAY THROUGH THE UNIVERSITY OF WISCONSIN AS A BARROOM BOUNCER HAS BEEN WILLING TO GO FAIRLY FAR INDEED ONE PARTIAL BILL ELIMINATED THE WORDS CLEAN ENERGY REBATE IN A CLEAN ENERGY REBATE PROGRAM THE LEGISLATURE PASSED WHAT REMAINED STANDING WHEN THE GOVERNOR WAS THROUGH WAS AN UNSPECIFIED PROGRAM AND 50000 TO HIRE SOMEBODY FOR IT ALTHOUGH DEMOCRATIC LEGISLATORS HOWL IN PAIN DICTATOR FOR A DAY THEY CRIED ON THE DAY HE USED THE PARTIAL VETO 457 TIMES THEY SEEM STUMPED ON HOW TO MAKE MR THOMPSON'S VETOES A WINNING ISSUE THEY CONCEDE THAT MOST OF HIS VETOES ARE TOO LIMITED IN SCOPE TO AROUSE VOTERS AT LARGE THIS IS TOO ESOTERIC TOO INSIDE BASEBALL SAYS MAJORITY LEADER TRAVIS WHO SPENT HIS OWN MONEY TO TAKE THE ISSUE ALL THE WAY TO THE US SUPREME COURT THE COURT DECLINED TO HEAR IT BUT A FEW YEARS AGO EVEN THE POLITICALLY ADROIT MR THOMPSON WENT TOO FAR WITH THE BACKING OF THE WISCONSIN SUPREME COURT HE VETOED INDIVIDUAL LETTERS OF THE ALPHABET IN LEGISLATION THEN USED THE SURVIVING LETTERS TO SPELL OUT NEW WORDS FOR NEW SENTENCES TO CREATE BRANDNEW LEGISLATION AT THIS THE LEGISLATURE AND THE VOTERS DREW THE LINE AND IN 1990 VOTERS PASSED A CONSTITUTIONAL AMENDMENT PROHIBITING THE GOVERNOR FROM VETOING INDIVIDUAL LETTERS HERE IN WISCONSIN IT'S KNOWN AS THE VANNA WHITE AMENDMENT 9307010115 930701 WHAT'S NEWS BUSINESS AND FINANCE WESTINGHOUSE ELECTRIC NAMED MICHAEL H JORDAN EXHEAD OF PEPSICO'S INTERNATIONAL OPERATIONS CHAIRMAN AND CEO PORTENDING BIG CHANGES AT THE ELECTRONICS AND MANUFACTURING FIRM HE IS LIKELY TO SHRINK MANAGEMENT LAYERS AND SPEED DECISIONMAKING ABOUT WHICH BUSINESSES TO SELL THE ADMINISTRATION REEMPHASIZED ITS CALL FOR AN ENERGY TAX EVEN AS A COALITION OF CONGRESSIONAL DEMOCRATS URGED THAT THE ENERGY LEVY BE DROPPED FROM A DEFICITREDUCTION PLAN AND REPLACED WITH HIGHER INCOME TAXES FLAGSTAR AGREED TO DOUBLE THE NUMBER OF DENNY'S FRANCHISES OWNED BY MINORITIES ADD HUNDREDS OF BLACK MANAGERS AND SHARPLY INCREASE PURCHASING FROM MINORITY ENTERPRISES FLAGSTAR'S PLAN FOR WHICH IT SAID IT WILL EARMARK 1 BILLION COMES AMID CHARGES OF DISCRIMINATION AT DENNY'S IBM PLANS TO LAUNCH TWO ENTIRELY NEW PERSONAL COMPUTER SUBSIDIARIES AN AMBITIOUS MOVE THAT WILL TAKE IT INTO NEW MARKETS BUT ALSO CREATE NEW COMPETITION FOR ITS EXISTING PCS GRAIN COMPANIES ARE INCREASINGLY ADDING WATER TO GRAIN A PRACTICE THAT ADDS WEIGHT AND THUS RAISES THE COST COMPANIES SAY THEY ARE PRACTICING DUST CONTROL BUT REGULATORS ARE MOVING TO BAN MOST GRAIN WATERING A STEP SAID TO STEM PARTLY FROM A PROBE OF A CONAGRA GRAIN HANDLING UNIT CLINTON PLANS TO CALL FOR ABOUT 15 BILLION IN AID FOR DISPLACED WORKERS AND ECONOMIC DEVELOPMENT IN THE NORTHWEST AS PART OF A PLAN TO PRESERVE TIMBER LANDS FOR THE SPOTTED OWL THE US WILL EMPHASIZE THE URGENCY OF REVIVING THE GLOBAL ECONOMY AT NEXT WEEK'S SUMMIT IN TOKYO TREASURY SECRETARY LLOYD BENTSEN SAID HE PREDICTED THAT GERMANY WILL CUT INTEREST RATES AGAIN TO REACH THAT END QUANTUM CHEMICAL'S STOCK SURGED 650 OR 52 TO 19 AFTER HANSON AGREED TO BUY THE BIG US POLYETHYLENE MAKER FOR 720 MILLION BUSINESSES SOLD RECORD AMOUNTS OF NEW STOCKS AND BONDS IN THE FIRST HALF WITH SALES SOARING 19 FROM A YEAR BEFORE SECURITIES BROKERS TOOK HOME 43 BILLION IN UNDERWRITING FEES FOR HELPING TO BRING TO MARKET 3398 STOCK AND BOND DEALS VALUED AT 5296 BILLION RYDER SYSTEM SAID IT WILL SPIN OFF ITS AVIATION BUSINESS INTO A PUBLIC COMPANY A MOVE THAT CAPS A RESTRUCTURING EFFORT THAT STARTED FOUR YEARS AGO FOREIGN INVESTMENT IN THE US EXCEEDED US INVESTMENT ABROAD BY A RECORD 52133 BILLION AT THE END OF 1992 COMPARED WITH 36487 BILLION IN 1991 JAPAN ASKED ITS FLATGLASS MAKERS TO REVIEW THE WAY THEY DO BUSINESS AFTER MONTHS OF PRESSURE FROM THE US TO OPEN THE JAPANESE GLASS MARKET THE MOVE COMES A WEEK BEFORE THE G7 MEETING IN TOKYO WHERE JAPAN'S HUGE TRADE SURPLUS WILL BE A CENTRAL TOPIC ADMINISTRATIVE COSTS SOARED AN AVERAGE 90 AT 70 HOSPITALS IN PENNSYLVANIA FROM 1983 TO 1990 A NEW STUDY SAYS HIGHLIGHTING THE TOLL PAPERWORK IS TAKING ON THE HEALTHCARE SYSTEM THE WHITE HOUSE HAS SAID REDUCED PAPERWORK COULD GENERATE SAVINGS TO HELP PAY FOR ITS HEALTHCARE PACKAGE TOKYO PRICES ENDED MIXED WEDNESDAY AND VOLUME REMAINED EXTREMELY THIN AS THE LATEST JAPANESE SCANDAL CAST A PALL OVER THE MARKET THE NIKKEI INDEX ROSE 4658 POINTS TO 1959000 SHARE PRICES IN LONDON CLIMBED BONDS LEHMAN BROTHERS TREASURY INDEX 527952 OFF 074 COMMODITIES OIL 1885 A BARREL OFF 16 CENTS DOW JONES FUTURES INDEX 12095 UP 109 SPOT INDEX 12074 UP 061 DOLLAR 10700 YEN UP 050 17035 MARKS UP 00150 9307010114 930701 BUSINESS BRIEF ZITEL CORP DATA STORAGE CONCERN SEES LOSS IN FISCAL 3RD QUARTER ZITEL CORP SAID IT EXPECTS TO REPORT A SIGNIFICANT LOSS FOR ITS FISCAL THIRD QUARTER ENDED YESTERDAY BECAUSE OF LOWERTHANEXPECTED SALES THE FREMONT CALIF COMPANY WOULDN'T BE MORE SPECIFIC ZITEL CLOSED YESTERDAY AT 4375 DOWN 125 OR 22 IN OVERTHECOUNTER TRADING IN THE YEARAGO PERIOD THE COMPANY EARNED 426000 OR SEVEN CENTS A SHARE ON SALES OF 11 MILLION THE MAKER OF DATA STORAGE AND COMMUNICATIONS PRODUCTS SAID CERTAIN CUSTOMERS HAVE BEEN REDUCING BUDGETS AND DELAYING PURCHASES BECAUSE OF SLUGGISH MARKETS SO FAR THIS FISCAL YEAR THE COMPANY HAS LAID OFF ABOUT 40 WORKERS BRINGING ITS WORK FORCE TO 150 ZITEL SAID IT PLANS TO FURTHER DOWNSIZE AND BRING EXPENSES IN LINE WITH EXPECTED REVENUES BUT WASN'T MORE SPECIFIC FOR THE SIX MONTHS ENDED MARCH 31 ZITEL POSTED A NET LOSS OF 3 MILLION OR 49 CENTS A SHARE ON REVENUE OF 144 MILLION 9307010113 930701 REVIEW & OUTLOOK EDITORIAL ASIDES PEASANTS RESCUED OUR RECENT ATTENTION HERE TO SPEECH CODES AND POLITICAL CORRECTNESS PRODUCED THE FOLLOWING TALE FROM ONE OF THE US'S STATE UNIVERSITIES A STUDENT WHO HAD USED THE WORD PEASANT IN A PAPER WAS REPRIMANDED BY A TEACHER WHO ADMONISHED THE STUDENT THAT THE PROPER USAGE IN THIS CONTEXT SHOULD BE IMPOVERISHED AGRICULTURAL WORKER WE ASSUME FOR THE SAKE OF SANITY THAT ALL SUCCEEDING REFERENCES TO THESE FOLKS MAY CALL THEM IAWS 9307010111 930701 WHO'S NEWS FOXMEYER'S LETHAM QUITS AS FINANCE CHIEF DALLAS FOXMEYER CORP SAID DENNIS LETHAM 42 YEARS OLD RESIGNED AS CHIEF FINANCIAL OFFICER TO TAKE A SENIOR MANAGEMENT POSITION WITH A CHICAGO CONCERN WHOSE NAME WAS NOT DISCLOSED MR LETHAM ALSO RESIGNED AS CHIEF FINANCIAL OFFICER OF NATIONAL INTERGROUP INC FOXMEYER'S HOLDING COMPANY PARENT A FOXMEYER SPOKESMAN CALLED THE RESIGNATION UNEXPECTED MR LETHAM COULD NOT BE REACHED FOR COMMENT BUT SAID IN A NEWS RELEASE THAT THE NEW POSITION JUST HAPPENED TO BE THE RIGHT OPPORTUNITY AND SHOULD NOT BE LOOKED UPON IN ANY SHAPE OR FORM AS REFLECTING ON FOXMEYER OR ANY OF THE PEOPLE THERE A SUCCESSOR WAS NOT IMMEDIATELY NAMED BUT THE COMPANY SAID MR LETHAM WOULD ASSIST IT IN HANDLING THE TRANSITION MR LETHAM'S RESIGNATION COMES ONE MONTH AFTER THE RESIGNATION OF ROBERT L KING 43 THE COMPANY'S FORMER CHIEF EXECUTIVE OFFICER AND PRESIDENT THE DRUG WHOLESALER HAS BEEN TRYING TO FIND NEW CUSTOMERS TO REDUCE ITS DEPENDENCE UPON RETAILER PHARMOR INC YOUNGSTOWN OHIO WHICH FILED FOR BANKRUPTCYLAW PROTECTION LAST AUGUST FOR ITS FOURTH QUARTER ENDED MARCH 31 FOXMEYER REPORTED NET INCOME OF 55 MILLION OR 20 CENTS A SHARE DOWN 63 FROM 15 MILLION OR 48 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 49 TO 13 BILLION FROM 8406 MILLION 9307010110 930701 WHO'S NEWS BELL ATLANTIC ASSIGNS OFFICIALS PHILADELPHIA BELL ATLANTIC CORP CONTINUING TO DEFINE LINES OF BUSINESS WITHIN ITS TELEPHONE NETWORK SERVICES INC UNIT NAMED FOUR PRESIDENTS OF NEWLY DESIGNATED BUSINESS LINES BRUCE S GORDON 47 YEARS OLD WAS NAMED PRESIDENT FOR CONSUMER SERVICES JOHN T LOSIER 40 WAS APPOINTED PRESIDENT FOR LARGEBUSINESS SERVICES MARK L KUTNER 49 BECOMES PRESIDENT FOR SMALLBUSINESS SERVICES AND EDWARD H SPROAT 55 WAS NAMED PRESIDENT FOR NETWORK OPERATIONS ALSO STUART C JOHNSON 50 WAS NAMED GROUP PRESIDENT FOR LARGE BUSINESS AND INFORMATION SERVICES AND BRIAN J KELLY 59 WAS NAMED GROUP PRESIDENT FOR NETWORK OPERATIONS JOHN F GAMBA 54 CURRENTLY PRESIDENT OF NETWORK SERVICES INC WAS NAMED GROUP PRESIDENT OF NETWORK TECHNOLOGIES & SYSTEMS AND ETHAN A STENGER 57 WAS NAMED VICE PRESIDENT FOR ADMINISTRATION REPORTING TO MR GAMBA A GROUP PRESIDENT FOR CONSUMER AND SMALL BUSINESS SERVICES HAS YET TO BE NAMED THE COMPANY SAID 9307010109 930701 WHO'S NEWS NIKKO SECURITIES CO NIKKO SECURITIES CO TOKYO MASUMI YAMAGUCHI 58 YEARS OLD WAS NAMED DEPUTY CHIEF OPERATIONS OFFICER OF THE AMERICAS GROUP A NEWLY CREATED POSITION AT THIS SECURITIES FIRM MR YAMAGUCHI ALSO WAS NAMED VICE CHAIRMAN OF THE NIKKO SECURITIES CO INTERNATIONAL INC UNIT IN NEW YORK INCREASING THE NUMBER OF VICE CHAIRMEN TO TWO HE WILL CONTINUE AS GENERAL MANAGER OF THE UNIT'S CORPORATE FINANCE DEPARTMENT TADAO OSADA 46 WAS NAMED PRESIDENT OF THE NEW YORK UNIT SUCCEEDING MR YAMAGUCHI 9307010108 930701 WHO'S NEWS BRUSH CREEK MINING & DEVELOPMENT CO BRUSH CREEK MINING & DEVELOPMENT CO GRASS VALLEY CALIF EDWARD LAWSON 62 YEARS OLD A CANADIAN SENATOR WAS NAMED CHAIRMAN OF THIS MINING CONCERN SUCCEEDING JIM ANDERSON WHO REMAINS ON THE COMPANY'S ADVISORY BOARD 9307010107 930701 MARKETING BRIEF NEWS CORP COMPANY PLANS TO BUY 15 STAKE IN SEVEN NETWORK RUPERT MURDOCH'S NEWS CORP IS POISED TO REENTER THE REALM OF COMMERCIAL TELEVISION IN AUSTRALIA WITH A PLAN TO PURCHASE A 15 STAKE IN SEVEN NETWORK LTD ONE OF THREE COMMERCIAL TELEVISION NETWORKS OPERATING IN THE COUNTRY THE GLOBAL MEDIA COMPANY IN AUSTRALIA PLANS TO ACQUIRE THE STAKE AS PART OF AN INITIAL PUBLIC OFFERING OF SHARES IN SEVEN NETWORK THE PLANNED ACQUISITION EXPECTED TO COST ABOUT 90 MILLION AUSTRALIAN DOLLARS US60 MILLION IS PART OF A RECENT PUSH BY NEWS CORP TO EXPAND ITS BUSINESSES INTERNATIONALLY THE 15 THAT NEWS CORP WOULD OWN IS THE MAXIMUM ALLOWED UNDER AUSTRALIA'S MEDIA CROSSOWNERSHIP RULES NEWS CORP IS AUSTRALIA'S BIGGEST NEWSPAPER PUBLISHER NEWS CORP PREVIOUSLY OWNED TELEVISION STATIONS IN SYDNEY AND MELBOURNE BUT WAS FORCED TO SELL ITS INTERESTS IN THE LATE 1980S TO SATISFY CERTAIN MEDIA CROSSOWNERSHIP RULES 9307010106 930701 BUSINESS BRIEF ASPEN IMAGING INTERNATIONAL INC BUCKEYE BUSINESS PRODUCTS AGREES TO ACQUIRE 41 STAKE ASPEN IMAGING INTERNATIONAL INC SAID CLOSELY HELD BUCKEYE BUSINESS PRODUCTS INC CLEVELAND AGREED TO ACQUIRE ABOUT 17 MILLION OR 41 OF ITS COMMON SHARES FOR ABOUT 29 MILLION BOTH COMPANIES MAKE AND MARKET PRINTER SUPPLIES THE SHARES TO BE PURCHASED FOR 165 EACH INCLUDE ONE MILLION COMMON SHARES NEWLY ISSUED BY THE LAFAYETTE COLO COMPANY AND 732000 COMMON SHARES TO BE SOLD BY PETER C WILLIAMS ASPEN'S PRESIDENT AND CHIEF EXECUTIVE OFFICER THE TRANSACTION EXPECTED TO CLOSE ON OR ABOUT JULY 12 WOULD INCREASE ASPEN IMAGING'S TOTAL OUTSTANDING SHARES TO ABOUT 42 MILLION FOR ITS THIRD QUARTER ENDED MARCH 31 ASPEN RECORDED A NET LOSS OF 136409 OR FOUR CENTS A SHARE COMPARED WITH A LOSS OF 265141 OR EIGHT CENTS A SHARE A YEAR EARLIER REVENUE FELL 23 TO 35 MILLION FROM 46 MILLION IN LATE OVERTHECOUNTER TRADING YESTERDAY ASPEN IMAGING SHARES WERE QUOTED AT 1375 UP 47 OR 4375 CENTS 9307010105 930701 BUSINESS BRIEF CROSS TIMBERS OIL CO ATLANTIC RICHFIELD CO SELLS OIL GAS PROPERTIES TO FIRM CROSS TIMBERS OIL CO SAID IT COMPLETED ITS PREVIOUSLY ANNOUNCED ACQUISITION OF INTERESTS IN CERTAIN OIL AND GAS PROPERTIES FROM ATLANTIC RICHFIELD CO FOR APPROXIMATELY 332 MILLION THE PURCHASE PRICE WAS LOWER THAN THE PREVIOUSLY ANNOUNCED TOTAL OF 371 MILLION BECAUSE OF PREFERENTIAL PURCHASE RIGHTS EXERCISED BY THIRD PARTIES AND ESTIMATED CASH FLOW FROM THE APRIL 1 EFFECTIVE DATE TO CLOSING THE PURCHASE WAS PAID FOR THROUGH BORROWINGS UNDER THE COMPANY'S EXISTING CORPORATE CREDIT FACILITY WITH COMMERCIAL BANKS CROSS TIMBERS IS BASED IN FORTH WORTH TEXAS THE ACQUIRED INTERESTS CONSIST OF WORKING AND ROYALTY INTERESTS IN THE RUSSELL FIELD OF GAINES COUNTY THE PRENTICE FIELD OF TERRY AND YOAKUM COUNTIES ALL IN TEXAS AND SEVERAL FIELDS IN LEA COUNTY NEW MEXICO CROSS TIMBERS ESTIMATES PROVED RESERVES AT JULY 1 TO BE 55 MILLION BARRELS OF CRUDE OIL AND CONDENSATE AND 95 BILLION CUBIC FEET OF NATURAL GAS 9307010104 930701 MARKETING & MEDIA DAYTON HUDSON TESTS INFOMERCIAL' FOR OUTLYING MARKET MAJOR RETAILER HOPES TO PUT CABLETV AUDIENCE TO SLEEP WITH ITS PILLOWS BEDDING BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL DAYTON HUDSON CORP IN WHAT IT CALLS A FIRST FOR A MAJOR RETAILER IS TESTING THE INFOMERCIAL ADVERTISING FORMAT ITS FIRST HALFHOUR INFOMERCIAL MAY ENJOY ANOTHER DISTINCTION IT ACTUALLY TRIES TO PUT VIEWERS TO SLEEP THE MINNEAPOLISBASED RETAILER HAS BEGUN TESTING THE FORMAT TO SELL PILLOWS AND COMFORTERS THE HALFHOUR PROGRAM CALLED MARSHALL FIELD'S PRESENTS AFTER ITS CHICAGO DEPARTMENTSTORE CHAIN PREMIERED LAST SATURDAY ON CABLETV NETWORK CNBC AND WILL AIR ON 30 STATIONS BEFORE NEXT WEDNESDAY RECENTLY RETAILERS RH MACY & CO NEW YORK AND NORDSTROM INC SEATTLE ANNOUNCED INITIATIVES TO USE TELEVISION FOR SALES MACY IS STARTING ITS OWN TELEVISIONSHOPPING NETWORK SIMILAR TO THAT OPERATED BY CABLETV NETWORK QVC WHILE NORDSTROM IS DEVELOPING AN INTERACTIVEVIDEO SALES FORMAT THAT WOULD PAIR SHOPPERS THROUGH THEIR TV SETS WITH SALES CLERKS WE HAVE BEEN FASCINATED BY THE RAPID EVOLUTION OF DIRECTTV SELLING AND WE ARE COMMITTED TO KEEPING OUR TOE IN ALL OF THE WATERS THAT ARE MOVING SAID JAMES STIRRATT SENIOR VICE PRESIDENT OF DAYTON HUDSON DEPARTMENT STORE DIVISION SOME 175 INFOMERCIALS WILL AIR THIS YEAR ACCORDING TO THE NATIONAL INFOMERCIAL MARKETING ASSOCIATION DAYTON HUDSON SAID IT DECIDED TO TRY INFOMERCIALS TO EXPOSE CUSTOMERS WHO DON'T LIVE IN ITS STORES' AREAS TO ITS DEPARTMENT STORES AND PRODUCTS THE RETAILER SERVES SIX OF THE 30 MARKETS WHERE ITS INFOMERCIALS WILL AIR THE PROGRAM TARGETING WORKING WOMEN BEGINS WITH AN ACTRESS TELLING OF RESEARCH THAT SUGGESTS WORKING WOMEN HAVE PROBLEMS GETTING A GOOD SLEEP THE SHOW AIRS MOSTLY IN THE MORNINGS WHEN MOST WORKING WOMEN ARE AT OR ON THEIR WAY TO WORK DAYTON HUDSON OFFICIALS SAID THE RETAILER DECIDED TO SELL PILLOWS RATHER THAN OTHER PRODUCTS TO DISTINGUISH IT FROM THE GROWING NUMBER OF TVSHOPPING PROGRAMS FURTHER IN TESTING ITS CONCEPT WITH CONSUMERS DAYTON HUDSON SAID IT FOUND THAT CONSUMERS TAKE THEIR PILLOWS VERY SERIOUSLY MANY PEOPLE HAVE AN EXTRAORDINARY PERSONAL RELATIONSHIP WITH THEIR PILLOW MR STIRRATT SAID 9307010103 930701 COMMODITIES PALLADIUM PRICES RISE TO THEIR HIGHEST LEVELS IN 3 YEARS AS PRECIOUS METALS FUTURES END MIXED BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRECIOUS METALS FUTURES ENDED MIXED WITH PALLADIUM CONTINUING TO POWER AHEAD TO ITS HIGHEST LEVELS IN MORE THAN THREE YEARS ON THE NEW YORK MERCANTILE EXCHANGE PALLADIUM FOR SEPTEMBER DELIVERY JUMPED 265 TO SETTLE AT 13740 AN OUNCE TRADERS SAID STRONG US AND JAPANESE DEMAND FOR THE METAL USED PRIMARILY IN THE MANUFACTURE OF CONSUMER ELECTRONICS AND CATALYTIC CONVERTERS PUSHED THE ACTIVE SEPTEMBER CONTRACT TO ITS RECENT HIGHS SPECULATIVE BUYING BY COMMODITY FUNDS OR MANAGED POOLS OF INVESTORS' MONEY ALSO IS FUELING THE RALLY TRADERS AND ANALYSTS SAID THERE SEEMS TO BE A LOT OF SPECULATIVE INTEREST IN PALLADIUM BY THE FUNDS HERE IN NEW YORK AND THAT IS SPILLING OVER INTO PLATINUM AS WELL SAID GEORGE MILLINGSTANLEY AN ANALYST WITH SHEARSON LEHMAN BROTHERS PLATINUM FOR OCTOBER DELIVERY CLOSED 1 HIGHER AT 38850 AN OUNCE ON THE NEW YORK MERC MR MILLINGSTANLEY SAID SUPPLY CONDITIONS PARTICULARLY IN RUSSIA THE WORLD'S LARGEST PRODUCER ARE EXPECTED TO TIGHTEN BOTH PALLADIUM AND PLATINUM ARE BYPRODUCTS OF NICKEL ONE OF RUSSIA'S KEY NATURAL RESOURCES THE RUSSIANS ARE FALLING BEHIND ON THEIR DELIVERIES HE SAID WHILE I DON'T THINK THERE'S ANY MAJOR TIGHTNESS IN SUPPLY RIGHT NOW THINGS ARE NOT GOING TO GET BETTER AS FAR AS PALLADIUM SUPPLY FROM RUSSIA IS CONCERNED HE CITED APPARENTLY INTRACTABLE POLITICAL AND ECONOMIC CHALLENGES IN THE STRUGGLING DEMOCRACY AS GROUNDS FOR CONCERN NINA LIPTON RESEARCH MANAGER FOR PLATINUM GUILD INTERNATIONAL AN INDUSTRY TRADE GROUP ADDED I BELIEVE THE RUSSIANS DON'T HAVE A LOT OF PALLADIUM TO SELL RIGHT NOW IF THEY HAD THE METAL THEY WOULD BE SELLING IT THEIR NICKEL PRODUCTION IS DOWN IT'S JUST NOT ENOUGH TO KEEP PACE WITH DEMAND GOLD FUTURES PRICES CONTINUED TO TRADE IN A NARROW RANGE ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR AUGUST DELIVERY EDGED 30 CENTS LOWER TO 37920 AN OUNCE IN MODERATE TRADING THE ACTIVE AUGUST CONTRCT HAD TRADED ABOVE 380 EARLY IN THE DAY BUT FAILED TO REACH WHAT TECHNICAL ANALYSTS REGARD AS AN IMPORTANT NEARTERM TARGET OF 38220 AN OUNCE FAILURE TO BREACH THE TARGET SENT THE METAL LOWER FOR THE DAY THEY SAID SILVER FOR DECEMBER DELIVERY SHED 08 CENT TO 4637 AN OUNCE IN OTHER COMMODITY MARKETS GRAINS AND SOYBEANS SOYBEAN FUTURES PRICES CONTINUED TO SOAR AS TRADERS TOOK STOCK OF YIELD REDUCTIONS THAT ARE LIKELY TO RESULT FROM THIS SPRING'S UNUSUALLY LATE PLANTING OF SOYBEANS PERSISTENT RAINS THROUGHOUT THE SPRING HAVE DELAYED PLANTINGS IN SUCH BIG SOYBEANPRODUCING STATES AS IOWA AND ILLINOIS YESTERDAY WEATHER FORECASTS PREDICTED YET MORE RAIN OVER MANY SOYBEANGROWING REGIONS MANY FARMERS ANALYSTS SAY MAY NOW OPT TO GIVE UP ON PLANTING UNSEEDED PORTIONS OF THEIR SOYBEAN CROPS THE LATE AND ABORTED PLANTINGS ANALYSTS SAY FORESHADOW POTENTIALLY WEAK SOYBEAN PRODUCTION DURING THIS YEAR'S GROWING SEASON AT THE CHICAGO BOARD OF TRADE THE PRICE OF THE SOYBEAN FUTURES CONTRACT FOR JULY DELIVERY WAS UP 19 1/4 CENTS TO 6525 A BUSHEL MEANWHILE THE STRENGTH IN SOYBEAN PRICES SPILLED OVER INTO OTHER FUTURES TRADING PITS CORN FOR JULY DELIVERY WAS UP FIVE CENTS TO 22275 A BUSHEL AND WHEAT FOR JULY DELIVERY ROSE 5 3/4 CENTS TO 285 A BUSHEL COPPER FUTURES PRICES CONTINUED TO CLIMB AMID SIGNS OF GROWING ASIAN DEMAND FOR THE WIDELY USED INDUSTRIAL METAL ON NEW YORK'S COMMODITY EXCHANGE COPPER FOR SEPTEMBER DELIVERY ROSE 060 CENT TO 865 CENTS A POUND ANALYSTS SAID THAT DESPITE INDICATORS OF A SLOWDOWN IN US ECONOMIC ACTIVITY DEMAND FROM ASIA FOR COPPER SHOULD PUSH THE METAL TO LEVELS OF AROUND 88 CENTS A POUND OR HIGHER OVER COMING WEEKS THE UPTREND FROM THE LOW OF 78 CENTS ON MAY 7 IS PRONOUNCED ON THE CHARTS SAID RICK HIRSCH AN ANALYST WITH SHARPS PIXLEY INC IN NEW YORK HE SAID NEARTERM FUTURES CONTRACTS COULD FACE SIGNIFICANT UPWARD PRESSURE THE BUYING ON WEDNESDAY WAS CONCENTRATED IN ALL THE 1993 CONTRACTS BUT FAILED TO SPILL OVER INTO THOSE FOR 1994 HE SAID ENERGY CRUDE OIL AND PETROLEUM PRODUCT PRICES FELL IN A LATE DOWNTURN CAUSED BY TECHNICALRELATED SELLING LIGHT SWEET CRUDE FOR AUGUST DELIVERY GENERALLY STAYED BELOW 19 A BARREL AND SETTLED AT 1885 DOWN 16 CENTS SOME MARKET PLAYERS WERE SURPRISED BY THE DECLINE IN LIGHT OF WHAT THEY SAID WERE NEUTRAL TO BULLISH INVENTORY REPORTS RELEASED TUESDAY FOR INSTANCE GASOLINE STOCKS WERE NEARLY ONE MILLION BARRELS BELOW WHERE THEY WERE THIS TIME LAST YEAR JULY GASOLINE ENDED AT 5454 CENTS A GALLON DOWN 026 CENT HEATING OIL PRICES ALSO FELL NEWS THAT MARATHON OIL CO A SUBSIDIARY OF USX CORP WOULD TEMPORARILY IDLE A 50000BARRELADAY REFINERY IN INDIANAPOLIS DIDN'T HAVE MUCH IMPACT ON PRODUCT PRICES TRADERS SAID 9307010102 930701 LAW LEGAL BEAT RULINGS SUPPORT THE FINE PRINT OF HEALTH PLANS BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL PATIENTS ARE GETTING STUCK WITH BIG MEDICAL BILLS AS COURTS INCREASINGLY ENFORCE THE FINE PRINT IN THEIR HEALTHCOVERAGE PLANS TYPICALLY PATIENTS IN THESE CASES HAVE FAILED TO GET PREAPPROVAL FOR THEIR MEDICAL CARE A REQUIREMENT OF MANY HEALTHMAINTENANCE ORGANIZATIONS AND INSURERS SOMETIMES THEY HAVE MISSED A DEADLINE BY ONLY A FEW DAYS OTHER TIMES A PATIENT IS TRAVELING WHEN A MEDICAL EMERGENCY DEVELOPS AND FAILS TO SEEK CONSENT FOR OUTOFTOWN TREATMENT FOR PATIENTS FACING DIRE HEALTH PROBLEMS THESE RULES OFTEN SEEM LIKE TECHNICALITIES BUT MANY COURTS DON'T SEE THEM THAT WAY JUDGES ARE RULING THAT THE REQUIREMENTS ARE AN IMPORTANT PART OF EFFORTS BY INSURERS TO CONTROL HEALTH COSTS AND THEY ARE LETTING HMOS AND OTHER MANAGEDCARE PLANS OFF THE HOOK FOR MEDICAL TABS THAT RUN TO HUNDREDS OF THOUANDS OF DOLLARS THE DECISIONS HAVE CAUGHT SOME LAWYERS BY SURPRISE IN ORDINARY CONTRACT CASES JUDGES RARELY RULE AGAINST PARTIES SIMPLY BECAUSE THEY HAVE NEGLECTED TO ABIDE BY EVERY DETAIL IN AN AGREEMENT THE CASES HAVE IMPORTANT IMPLICATIONS EVEN FOR PATIENTS WHO AREN'T NOW MEMBERS OF HMOS BECAUSE PRESIDENT CLINTON'S HEALTH PROPOSALS ARE LIKELY TO ENCOURAGE MORE AMERICANS TO JOIN SUCH ORGANIZATIONS WITH COST CONTAINMENT MORE OF AN ISSUE PEOPLE MAY FIND THEMSELVES PLUMB OUT OF LUCK IF THEY HAVEN'T OBSERVED SOME OF THOSE CONTROLS SAYS JOEL MICHAELS A HEALTHLAW SPECIALIST IN WASHINGTON THE CASES ARE BASICALLY ACKNOWLEDGING THAT TO PROPERLY MANAGE HEALTHCARE SERVICES THESE PROCEDURAL PROVISIONS ON THE FRONT END ARE APPROPRIATE MOST OF THESE CASES INVOLVE HMOS WHICH KEEP EXPENSES AND PREMIUMS DOWN BY REFERRING SUBSCRIBERS ONLY TO AFFILIATED PHYSICIANS WHO IN TURN ARE PAID A FLAT FEE BY THE HMO IN A CASE LAST YEAR A FEDERAL APPEALS COURT REBUFFED CHARLES MCGEE IN HIS EFFORT TO FORCE HIS HMO TO PAY 358000 FOR THE TREATMENT OF HIS DAUGHTER WHO WAS SEVERELY INJURED IN A CAR ACCIDENT THE DAUGHTER RECOVERING FROM A COMA WAS TREATED AT A HOSPITAL FOR NEUROLOGICAL INJURIES IN GARDNER KAN A LOWER COURT WHICH HAD ORDERED THE HMO TO PAY HIM 76000 FOR TWO MONTHS OF CARE AND ATTORNEYS' FEES LEFT HIM WITH THE TAB FOR ANOTHER 23 MONTHS MR MCGEE APPEALED THE DECISION TO THE 10TH US CIRCUIT COURT OF APPEALS WHICH UPHELD THE PAYMENT FOR THE FIRST TWO MONTHS BUT THE COURT RULED THAT MR MCGEE HAD FAILED TO SEEK AUTHORIZATION EVERY TWO MONTHS FOR CONTINUED CARE AS REQUIRED UNDER HIS CONTRACT WITH EQUICOR HEALTH PLAN A UNIT OF EQUICOREQUITABLE HCA CORP NEW YORK WHILE IT IS READILY APPARENT THAT MR MCGEE SOUGHT THE BEST POSSIBLE CARE FOR HIS DAUGHTER HE WAS STILL OBLIGATED TO WORK WITHIN THE DEFINED CONTRACTUAL BORDERS OF THE HMO THE COURT RULED IT DOESN'T SEEM FAIR MR MCGEE SAID IN AN INTERVIEW IT WAS A TECHNICALITY LAWYERS FOR HMOS CONCEDE THAT THE RESULTS OF THE MCGEE CASE AND OTHERS LIKE IT ARE HARSH BUT THEY SAY STRICT PROCEDURAL RULES ARE NECESSARY IF HMOS ARE TO MONITOR COSTS ADEQUATELY HMOS HELP CUT MEDICAL COSTS BY DETERMINING WHETHER PROPOSED TREATMENTS ARE NECESSARY BUT THE QUESTION IS MOOT IF A PROCEDURE IS ALREADY DONE AND PAID FOR IN ADDITION HMOS CAN'T EASILY EVALUATE WHETHER CARE IS BEING DELIVERED AS CHEAPLY AS POSSIBLE IF SUBSCRIBERS CAN FREELY CHOOSE DOCTORS WHO AREN'T PART OF THE APPROVED NETWORK EVEN IN EMERGENCIES COURTS HAVE SHOWN LITTLE SYMPATHY WHEN HMOS DENY COVERAGE BECAUSE OF A FEW DAYS' DELAY IN GETTING APPROVAL IN A 1991 CASE FOR EXAMPLE THE SOUTH CAROLINA SUPREME COURT THREW OUT ALL BUT ONE OF WALTER LIGHTLE'S CLAIMS AGAINST HIS HMO MAXICARE/HEALTHAMERICA GREENVILLE SC MAXICARE HAD REFUSED TO COVER FULLY THE CARE FOR MR LIGHTLE'S WIFE AFTER HE ALLEGEDLY WAITED FIVE DAYS TOO LONG TO GET APPROVAL FOR HER EMERGENCY TREATMENT MRS LIGHTLE WAS VISITING HER DAUGHTER IN VIRGINIA WHEN SHE WAS HOSPITALIZED WITH RESPIRATORY PROBLEMS MAXICARE REQUIRED THAT SUBSCRIBERS NOTIFY IT WITHIN 48 HOURS OF ANY HOSPITALIZATION FOR OUTOFTOWN EMERGENCY CARE MR LIGHTLE'S REMAINING CLAIM AGAINST MAXICARE WAS SETTLED AFTER MAXICARE FILED FOR BANKRUPTCYCOURT PROTECTION ACCORDING TO HIS LAWYER DUKE MCCALL SUCH CASES AS MR LIGHTLE'S ARE COMMON LAWYERS SAY BECAUSE HMO SUBSCRIBERS OFTEN FIND THEMSELVES NEEDING OUTOFTOWN EMERGENCY CARE AND IN THE CONFUSION SOMETIMES FAIL TO FOLLOW ALL THE RULES IN THEIR CONTRACTS AND MANY PATIENTS WHO HAVE RECENTLY JOINED HMOS ARE ACCUSTOMED TO THINKING IN TERMS OF TRADITIONAL INSURANCE WHICH ORDINARILY COVERS CARE ANYWHERE IN THE COUNTRY PATIENTS FORGET THAT HMOS AREN'T REQUIRED TO PAY FOR TREATMENT AWAY FROM HOME SIMPLY BECAUSE YOU FOUND A DOCTOR YOU LIKE SOMEPLACE ELSE OR BECAUSE YOU WERE VISITING YOUR PARENTS AND MOM COULD TAKE CARE OF YOU SAYS MADELEINE ESTABROOK A HEALTHLAW SPECIALIST AT LANE & ALTMAN IN BOSTON AN HMO HAS THE RIGHT TO TELL A PATIENT WHO IS AWAY FROM HOME THAT ONCE HIS CONDITION HAS STABILIZED HE'D BETTER GET BACK OR WE'RE NOT PAYING FOR ANYTHING ELSE MS ESTABROOK SAYS HOSPITALS NERVOUS ABOUT GETTING REIMBURSED TYPICALLY ENCOURAGE PATIENTS TO FOLLOW HMO PREAPPROVAL REQUIREMENTS BUT LAWYERS SAY THAT PATIENTS BEAR ULTIMATE RESPONSIBILITY FOR MAKING SURE THEY COMPLY WITH ALL THE RULES STILL STICKING WITH TRADITIONAL INSURANCE MAY NOT RELIEVE PATIENTS OF THE BURDEN OF SUCH PROCEDURAL NICETIES INSURERS TYPICALLY PLAY A MUCH SMALLER ROLE THAN HMOS IN MANAGING THEIR POLICYHOLDERS' CARE BUT RECENTLY THEY HAVE STARTED INCREASING THEIR PREAPPROVAL REQUIREMENTS LAST MONTH A FEDERAL APPEALS COURT IN CHICAGO RULED THAT AN INSURER DIDN'T HAVE TO PAY ANY OF THE 500000 IN EXPENSES ASSOCIATED WITH A PATIENT'S HEART TRANSPLANT AFTER DOCTORS FAILED TO GET THE INSURANCE COMPANY'S ADVANCE APPROVAL THE COURT NOTED THAT DOCTORS HAD NO OPTION OTHER THAN TO DO TRANSPLANT SURGERY BECAUSE THE PATIENT WOULD OTHERWISE HAVE DIED ON THE OPERATING TABLE NONETHELESS THE COURT SAID AS THE PLAN UNAMBIGUOUSLY STATES NO BENEFITS ARE PAYABLE WITHOUT PRIOR APPROVAL A BROKER VIOLATED SECURITIES LAW BY TRADING ON INFORMATION FROM THE PSYCHIATRIST OF FINANCIER SANFORD I WEILL'S WIFE A JUDGE RULED THE BROKER MARTIN SLOATE OF SLOATE WEISMAN & MURRAY CO NEW YORK TRADED ON INFORMATION PASSED ON TO HIM BY THE PSYCHIATRIST ROBERT WILLIS WHO LEARNED OF THE DEALS WHILE TREATING JOAN WEILL US DISTRICT JUDGE MILTON POLLACK RULED THAT MR SLOATE VIOLATED INSIDERTRADING LAWS A US JUDGE FOUND THAT THE JUSTICE DEPARTMENT WITHHELD EVIDENCE AND HINDERED THE DEFENSE IN THE IVAN THE TERRIBLE NAZI WARCRIMES CASE THE ASSOCIATED PRESS REPORTED BUT THE JUDGE RECOMMENDED THAT NO ACTION BE TAKEN AGAINST THE GOVERNMENT ATTORNEYS WHO CLAIM THAT RETIRED CLEVELAND AUTO WORKER JOHN DEMJANJUK WAS THE NOTORIOUS NAZI PRISON GUARD MR DEMJANJUK EXTRADITED TO ISRAEL IN 1986 WAS SENTENCED TO DEATH AFTER HIS CONVICTION IN ISRAEL HIS APPEAL IS PENDING BEFORE THE ISRAELI SUPREME COURT US DISTRICT JUDGE THOMAS A WISEMAN JR WAS APPOINTED BY A FEDERAL APPEALS COURT TO REVIEW THE JUSTICE DEPARTMENT'S HANDLING OF THE CASE THE JUDGE SAID THE GOVERNMENT ATTORNEYS PROCEEDED LARGELY ON THE PREMISE THAT MR DEMJANJUK WAS IVAN THE TERRIBLE AND DIDN'T PURSUE INFORMATION THAT COULD HAVE PROVED OTHERWISE BUT THE JUDGE ALSO SAID THE ATTORNEYS ACTED IN GOOD FAITH WHO'S NEWS ROBERT J NEWMAN ASSOCIATE GENERAL COUNSEL AT MCDONNELL DOUGLAS CORP JOINED MCKENNA & CUNEO HE WILL BE A PARTNER IN THE WASHINGTON LAW FIRM'S LOS ANGELES OFFICE JONATHAN M MOSES CONTRIBUTED TO THIS ARTICLE 9307010101 930701 AMERICAN PRESIDENT MARINE UNIT AMERICAN PRESIDENT COS OAKLAND CALIF SAID THE LOS ANGELES BOARD OF HARBOR COMMISSIONERS APPROVED A 30YEAR PERMIT FOR A DEDICATED CONTAINER TERMINAL FOR ITS UNIT EAGLE MARINE SERVICES LTD THE PERMIT NOW GOES TO THE LOS ANGELES CITY COUNCIL FOR APPROVAL THE NEW FACILITY WOULD COVER ABOUT 226 ACRES AT THE PORT OF LOS ANGELES CONSTRUCTION COSTS ARE ESTIMATED AT ABOUT 270 MILLION MOST OF THAT COMING FROM PUBLIC FUNDS IF THE TERMINAL IS BUILT AMERICAN PRESIDENT SAID IT PROJECTS IT WILL SPEND A MINIMUM OF 21 MILLION TO 25 MILLION A YEAR TO USE THE FACILITY 9307010100 930701 LEISURE & ARTS BOOKSHELF STUDY OF A PHOTOGRAPHER BY RICHARD LOCKE ENGROSSING FRUSTRATING ORIGINAL CLEAR OBSCURE AT ONCE ART CRITICISM SOCIAL HISTORY BIOGRAPHY AND CULTURAL THEORY ATGET'S SEVEN ALBUMS YALE UNIVERSITY PRESS 428 PAGES 55 BY MOLLY NESBIT IS A RICH AND PROVOCATIVE STUDY OF THE FRENCH PHOTOGRAPHER EUGENE ATGET 18571927 WHOSE MELANCHOLY VIEWS OF EMPTY PARIS STREETS AND CLUTTERED SHOP WINDOWS ARE THEMSELVES ENDLESSLY PROVOCATIVE ENIGMATIC SUBVERSIVE SOMBER CELEBRATIONS ATGET'S 10000 PHOTOGRAPHS EVEN RESIST OUR BEST EFFORTS TO REDUCE THEM TO AVANTGARDE CLASSICS AT THE END OF HIS LIFE ATGET WAS DISCOVERED BY THE MODERNISTS MAN RAY BERENICE ABBOTT TRISTAN TZARA AND ROBERT DESNOS VISITED HIS MONTPARNASSE STUDIO PICASSO BRAQUE AND UTRILLO BOUGHT HIS PHOTOGRAPHS BUT ATGET REFUSED TO CALL HIMSELF AN ARTIST HE WAS SIMPLY A SUCCESSFUL COMMERCIAL PHOTOGRAPHER WHO SPECIALIZED IN SCENES OF OLD PARIS ON HIS DOOR WAS THE SIGN DOCUMENTS FOR ARTISTS HIS CALLING CARD POINTEDLY DESCRIBED HIM AS AUTHOR PUBLISHER YOU CAN USE ONE OF MY PHOTOGRAPHS HE TOLD MAN RAY BUT DON'T PUT MY NAME ON IT THESE ARE SIMPLY DOCUMENTS I MAKE MS NESBIT BUILDS HER BOOK ON THIS COVERTLY PROFOUND REMARK WITH WHICH ATGET SHRUGGED OFF THE KIND OF HIGHBROW CULTURAL DISSENT PRACTICED BY THE SURREALISTS WITH GREAT CARE SHE SHOWS US HOW HE ALSO ACCOMMODATED RESISTED AND EXPLOITED THE NEEDS OF HIS MORE THAN 460 REGULAR CLIENTS IN HIS 37YEAR CAREER HERE MS NESBIT BECOMES AN ACCOMPLISHED BUSINESS AND SOCIAL HISTORIAN ATGET'S CUSTOMERS WERE PAINTERS ILLUSTRATORS THEATRICAL DESIGNERS ARCHITECTS DECORATORS CRAFTSMEN IN WOOD METAL AND STONE AND ANTIQUARIANS AND PRIVATE COLLECTORS WHO DREAMED OVER PICTURES OF DARK MEDIEVAL LANES AND RADIANT ARISTOCRATIC MANSIONS RELICS OF THE GOOD OLD DAYS BEFORE HAUSSMANN REBUILT THE CITY SOME OF ATGET'S MOST IMPORTANT CUSTOMERS WERE STATE INSTITUTIONS ARCHIVES LIBRARIES SCHOOLS MUSEUMS THE BIBLIOTHEQUE NATIONALE THE ECOLE DES BEAUXARTS THE MUSEE CARNAVALET IN ALL HE SOLD 16748 DOCUMENTS TO THE FRENCH STATE FOR WHOM HE ALSO MADE OFFICIAL PHOTOGRAPHIC SURVEYS OF THE STREETS OF CENTRAL PARIS AND OF THE TUILERIES GARDENS AND STATUES AFTER HIS DEATH PART OF HIS COLLECTION WENT TO A STATE ARCHIVE AND THE REST WAS BOUGHT BY BERENICE ABBOTT WHO BROUGHT IT BACK TO AMERICA IT NOW RESIDES IN THE MUSEUM OF MODERN ART THIS DIVISION SUGGESTS THAT FRANCE GOT HISTORY AND WE GOT ART BUT MS NESBIT ARGUES WITH GREAT INSIGHT THAT ATGET'S PHOTOGRAPHS ELUDE BOTH CATEGORIES OR RATHER COMBINE THEM IN WAYS THAT MAKE IT IMPOSSIBLE FOR US TO SEVER THE PHOTOS' EXTRAORDINARILY ELEGANT FORM FROM THEIR IMMENSELY PARTICULAR CONTENT THE TWO ARE INEXTRICABLE AND INTRANSIGENT LIKE ATGET HIMSELF WHO WAS KNOWN FOR HIS VIOLENT POLITICAL PERSONAL AND AESTHETIC CONVICTIONS HE WAS A LEFTIST BUT NEVER JOINED A POLITICAL PARTY HE WAS ALSO A BUSINESSMAN WHO COULD DECLARE WITH JUSTICE I CAN SAY THAT I POSSESS ALL OF OLD PARIS BUT HE NEVER SANK INTO PICTURESQUE NOSTALGIA QUITE THE CONTRARY HIS PHOTOS PROVOKE AND TROUBLE US LIKE THOSE OF THE SCENE OF A CRIME AS WALTER BENJAMIN SAID HIS OLD STREETS LOOK GRAVE AND OMINOUS HIS MODERN SHOP WINDOWS AND MARKETS BRISTLE WITH BLACKHUMOROUS JUXTAPOSITIONS HIS EERIE REFLECTION HAUNTS THE GLASSPANELED DOORS OF BARS AND CABARETS FOR MS NESBIT THE KEY TO HIS WORK IS THE SEVEN BOUND ALBUMS OF 60 PHOTOS EACH THAT HE SELECTED FROM HIS HOARD AS SHE DELVES INTO THEM SHE LEAVES ACADEMIC CONVOLUTIONS AND JARGON BEHIND AND GATHERS INTELLECTUAL AND EMOTIONAL MOMENTUM ATGET'S FIRST ALBUM ART IN OLD PARIS UNDERMINES NOSTALGIA ELEGANT FACADES ORNATE DOOR KNOCKERS STAIRCASES FLORAL MOLDINGS ARE ALL THERE BUT THE PERSPECTIVES AND LIGHTING CONTRASTS ARE TOO SHARP THE DOORS ARE LEFT OPEN MODERN ADVERTISING SIGNS KEEP INTRUDING THERE'S HORSE MANURE IN THE STREETS YOU CAN'T ESCAPE INTO THIS PAST HIS SECOND ALBUM PRIES INTO MODERN HOUSEHOLD INTERIORS FROM HIS OWN CRAMPED ROOMS TO A GLITZY CELEBRITY'S BOUDOIR AND THE CLASS CONTRASTS ARE BRUTALLY MATERIAL HIS THIRD ALBUM DISPLAYS WHEELED VEHICLES FROM DELIVERY TRUCKS TO CONSPICUOUSLY EMPTY CARRIAGES PARKED IN THE BOIS DE BOULOGNE A WELLKNOWN SITE FOR ILLICIT LOVE AMONG THE UPPER CLASSES THE FOURTH ALBUM EXAMINES LOWERCLASS SHOP DISPLAYS OF SECONDHAND CLOTHES JUNK UNWANTED FISH THE FIFTH PEERS INTO LOW CABARETS AND BARS THE SIXTH SURVEYS GARBAGE DUMPS AND RAGPICKERS ON THE OUTSKIRTS OF THE CITY AND THE SEVENTH SHOWS THE OLD MILITARY FORTIFICATIONS OF PARIS OVERRUN BY AGGRESSIVE NATURAL GROWTH TREES BUSHES VINES THAT PROCLAIM IN 1915 WHEN FRANCE WAS AT WAR MILITANT TRIUMPHANT PACIFICISM ALTHOUGH ATGET'S PHOTOGRAPHS ARE FAMOUS FOR USUALLY SHOWING THINGS NOT PEOPLE THEY ARE SUFFUSED WITH HUMAN FEELING AND THEY ARE NOT ABSTRACT FORMAL STUDIES THEY ARE EMPTY IN ORDER TO RESIST SENTIMENTAL STEREOTYPES HISTORICAL POLITICAL AESTHETIC PSYCHOLOGICAL THEY FORCE THE VIEWER TO SEE MATERIAL REALITY AS A DETERMINATIVE BUT NOT OMNIPOTENT FORCE IN HUMAN LIFE THIS INTRACTABLE GENIUS PURSUED A GRITTY HUMANISM THAT LIES FAR BEYOND CONVENTIONAL IDEOLOGIES MS NESBIT'S ILLUSTRATIONS ARE EXCELLENT AND FOR THOSE WHO WANT MORE THERE'S NOW AN UNPRECEDENTED 840PHOTO COLLECTION THAT TAKES US THROUGH THE STREETS OF ALL 20 ARRONDISSEMENTS ATGET PARIS EDITED BY LAURE BEAUMONTMAILLET DISTRIBUTED BY GINGKO PRESS 24 10TH ST SANTA ROSA CALIF 95401 787 PAGES 55 9307010099 930701 MARKETING & MEDIA INTERNATIONAL ALLIANCE IS CREATED TO PROMOTE MULTIMEDIA STANDARDS NEW YORK SEVEN INTERNATIONAL HIGHTECH COMPANIES FORMED A PARTNERSHIP TO STANDARDIZE AND PROMOTE COLLABORATIVE MULTIMEDIA PRODUCTS CALLING THEIR ALLIANCE THE MULTIMEDIA COMMUNICATIONS COMMUNITY OF INTEREST THE MEMBERS ARE INTERNATIONAL BUSINESS MACHINES CORP INTEL CORP NORTHERN TELECOM LTD BRITISH TELECOMMUNICATIONS PLC FRANCE TELECOM DEUTSCHE BUNDESPOST TELEKOM AND TELSTRA CORP A NORTHERN TELECOM SPOKESMAN SAID THE COMPANIES INTEND TO PURSUE COMMON STANDARDS FOR MULTIMEDIA EQUIPMENT AND TECHNOLOGY THAT ALLOW PEOPLE IN DIFFERENT LOCATIONS TO VIEW AND DISCUSS DOCUMENTS IMAGES GRAPHICS AND FULLMOTION VIDEO ON A PERSONAL COMPUTER SCREEN THE USERS COULD ALSO ALTER THOSE IMAGES OR DOCUMENTS WE'LL WORK ON TECHNICAL STANDARDS AND DO FIELD TRIALS TO TEST THE CONSISTENCY OF THOSE DESIGNS THE SPOKESMAN SAID THE FIELD TRIALS ARE EXPECTED TO START IN THE FIRST QUARTER OF 1994 9307010098 930701 WORLD MARKETS PRICES IN SCANDALCLOUDED TOKYO END MIXED MEXICAN STOCKS SINK AFTER US RULING ON NAFTA A WALL STREET JOURNAL NEWS ROUNDUP TOKYO PRICES ENDED MIXED WEDNESDAY AND VOLUME REMAINED EXTREMELY THIN AS THE LATEST JAPANESE SCANDAL CAST A PALL OVER THE MARKET LONDON STOCKS ROSE BUOYED BY COMPUTERPROGRAM TRADING AND ENDOFQUARTER PORTFOLIO ADJUSTMENTS IN MEXICO CITY STOCKS HAD HEADED UP ON A CUT IN MEXICAN MONEYMARKET RATES TO 12MONTH LOWS BUT THEY REVERSED COURSE AND FINISHED SHARPLY LOWER AFTER A US FEDERAL JUDGE DEALT A BLOW TO THE PROPOSED NORTH AMERICAN FREE TRADE AGREEMENT THE JUDGE RULED THAT THE ACCORD NEGOTIATED LAST YEAR BY THE US MEXICO AND CANADA VIOLATES US LAW THAT FIRST REQUIRES AN ASSESSMENT OF ENVIRONMENTAL EFFECTS THE MEXICAN MARKET'S IPC INDEX FELL 3298 POINTS OR 19 TO 166815 WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10594 DOWN 040 REFLECTING DECREASES IN MARKETS IN THE AMERICAS EUROPE AND THE ASIA/PACIFIC REGION FOREST PRODUCTS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 13553 UP 299 OR 23 WITH LOUISIANAPACIFIC OF THE US POSTING A 5 GAIN IN ITS LOCAL CURRENCY WATER UTILITIES STOCKS TRAILED AT 10268 DOWN 173 OR 17 WITH EAUX OF FRANCE SLIDING 18 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SLUMPED 34342 POINTS TUESDAY ROSE 4658 TO 19590 ON THURSDAY IN TOKYO THE NIKKEI ROSE 17147 POINTS TO CLOSE THE MORNING SESSION AT 1976147 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 230 MILLION SHARES LITTLE CHANGED FROM 2295 MILLION SHARES ON TUESDAY LOSERS OUTNUMBERED GAINERS 594395 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH LOST 1921 POINTS TUESDAY SLIPPED 101 TO 158025 IN THE WAKE OF TUESDAY'S ARRESTS IN A BRIBERY SCANDAL INVOLVING CONSTRUCTION COMPANIES AND THE MAYOR OF A JAPANESE CITY LOCAL GOVERNMENTS AND THE JAPAN'S CONSTRUCTION AGENCY BARRED THE FIRMS FROM BIDDING FOR NEW PUBLICWORKS JOBS AT A TIME WHEN THE INDUSTRY IS HIGHLY DEPENDENT ON SUCH CONTRACTS MOST INVESTORS KEPT TO THE SIDELINES WITH THE BRIBERY SCANDAL RAISING THE SPECTER OF MORE ARRESTS POSSIBLY OF NATIONAL POLITICIANS SO SELLING IN INDEX FUTURES LED WEAKNESS IN EQUITIES THROUGHOUT THE DAY DESPITE A MANIPULATIVE UPTICK IN THE CLOSING MINUTES THE NIKKEI OPENED LOWER AND SPENT MOST OF THE DAY WAFFLING DIRECTIONLESSLY UNCERTAINTY ABOUT JAPAN'S POLITICAL SCENE HAS HELD TURNOVER TO ITS LIGHTEST LEVELS IN MONTHS AS THE SPLINTERING IN MIDJUNE OF THE RULING LIBERAL DEMOCRATIC PARTY AND THE FALL OF THE GOVERNMENT OVER REFORMS FOLLOWING CORRUPTION SCANDALS MADE ROLES OF POWER UNCLEAR IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ADVANCED 140 POINTS TO 29000 THE FT 30STOCK INDEX ROSE 79 POINTS TO 22709 VOLUME WAS 5504 MILLION SHARES COMPARED WITH 562 MILLION SHARES A DAY EARLIER THE INDEXES POSTED GAINS DESPITE A DISAPPOINTING BRITISH GILT OR GOVERNMENTBOND AUCTION LOW DEMAND SUGGESTED THE GOVERNMENT WOULD HAVE TO RAISE YIELDS TO FUND THE BUDGET DEFICIT DRAWING OFF MONEY THAT COULD OTHERWISE GO TO BUYING STOCKS MEANWHILE PERFORMANCES OF UNIT TRUSTS OR MUTUAL FUNDS ARE JUDGED QUARTERLY AND PORTFOLIO MANAGERS AT THE END OF EACH PERIOD SPRUCE UP THEIR HOLDINGS WITH STOCKS THAT HAVE DONE WELL A PRACTICE KNOWN AS WINDOW DRESSING WHILE SOME OF THESE ADJUSTMENTS WERE MADE EARLIER THIS WEEK BIG INVESTORS WITH CASH POSITIONS REENTERED THE MARKET YESTERDAY PROGRAM TRADING ON THE BUYING SIDE EASILY HELPED LIFT THE MARKET BECAUSE OF THE RELATIVELY LIGHT VOLUME IN FRANKFURT ENDING A STRING OF THREE DAYS OF GAINS STOCK PRICES FELL IN QUIET DEALINGS AMID UNCERTAINTY ABOUT WHETHER GERMANY WILL REDUCE INTEREST RATES THE DAX 30STOCK INDEX FELL 1070 POINTS TO 169763 NEAR THE DAY'S LOW OF 169509 THOUGH THE INTRADAY TRADING RANGE WAS JUST 996 POINTS MANY INVESTORS EXPECTED A RATE CUT BY THE GERMANY BUNDESBANK EITHER TODAY OR AT LEAST BEFORE THE CENTRAL BANK COUNCIL'S SUMMER RECESS BEGINS JULY 29 AUTO SHARES WHICH HAD CHALKED UP GOOD GAINS FOR THE PAST TWO WEEKS WERE YANKED DOWN IN A CORRECTION AS THE DOLLAR WEAKENED PARIS STOCKS FELL MODESTLY IN A CONTINUING RETREAT FOLLOWING LAST MONTH'S STRONG SHOWING MADRID SHARE PRICES SURGED ON HOPES OF AN IMMINENT LOWERING OF GERMAN INTEREST RATES AND A SUBSEQUENT REDUCTION IN SPANISH RATES INDICATED AS POSSIBLE BECAUSE OF DISMAL ECONOMIC FIGURES SPAIN'S GROSS DOMESTIC PRODUCT IN THE FIRST QUARTER CONTRACTED 11 FROM A YEAR EARLIER AND FOURTHQUARTER GDP INITIALLY REPORTED AS A 02 CONTRACTION WAS REVISED TO A 04 SHRINKAGE STOCKHOLM SHARES ADVANCED IN THIN TRADING WITH GAINS LARGELY ATTRIBUTABLE TO TECHNICAL FACTORS CONNECTED TO THE CLOSING OF FIRSTHALF BOOKS BRUSSELS SHARES ROSE FOR THE SEVENTH CONSECUTIVE SESSION AS INVESTORS ANTICIPATED A GERMANLED ROUND OF EUROPEAN INTERESTRATE CUTS ZURICH PRICES ENDED HIGHER ON LASTMINUTE WINDOW DRESSING IN SYDNEY SHARE PRICES STRENGTHENED BUOYED MAINLY BY A RISE IN THE PRICE OF GOLD SINGAPORE EQUITIES WEAKENED AS PROFITTAKING BUMPED INTO FRESH BUYING HONG KONG STOCKS FELL AFTER EARLY GAINS WERE ERASED IN SEESAW TRADING AS SINOBRITISH TALKS ON THE COLONY'S NEW AIRPORT DIDN'T PRODUCE RESULTS MANILA SHARES STAGED A TECHNICAL REBOUND AND FINISHED HIGHER TAIPEI PRICES SANK 18 LOSING 7232 POINTS TO 399551 AND FALLING THROUGH A PERCEIVED SUPPORT LEVEL OF 4000 ON THE MARKET'S WEIGHTED INDEX FOR THE LOWEST CLOSING MARK SINCE FEB 19 SELLING PRESSURE INTENSIFIED AFTER INVESTORS FOUND THAT WINDOW DRESSING FAILED TO EMERGE AS USUAL AT THE END OF THE FIRST HALF FINANCIAL ISSUES WERE THE DAY'S BIGGEST LOSERS AMONG CORPORATE DEVELOPMENTS IN TOKYO MAZDA MOTOR JUMPED 23 YEN OR 47 TO 510 YEN 480 THE AUTO MAKER FACING AN ANNUAL LOSS PLANS TO SLASH COSTS TO PRODUCE ANNUAL PRETAX PROFIT WITHIN FOUR YEARS EVEN THOUGH SALES ARE LIKELY TO BE SLUGGISH AND THE JAPANESE YEN COULD BE EVEN STRONGER AGAINST THE US DOLLAR THE PLAN FOCUSES ON IMPROVING PROFITABILITY FOR EACH PRODUCT IN LONDON RATNERS GROUP CLIMBED 3 PENCE OR 92 TO 355 PENCE 54 US CENTS THE JEWELER'S LOSS OF 401 MILLION 607 MILLION FOR THE YEAR ENDED JAN 30 NARROWED FROM A YEAREARLIER DEFICIT OF 1223 MILLION RATNERS ALSO SIGNED NEW TWOYEAR AGREEMENTS WITH ITS BANK LENDERS AND SAID IT WOULD CHANGE ITS NAME TO SIGNET GROUP TO DISTINGUISH THE HOLDING COMPANY FROM ITS MAIN BRITISH CHAIN OF STORES GENERAL ELECTRIC ADDED 1 TO 3395 THE COMPANY WHICH SPECIALIZES IN POWER ENGINEERING AND TELECOMMUNICATIONS AND ISN'T RELATED TO A SIMILARLY NAMED US CONCNERN REPORTED PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 ROSE 41 TO 863 MILLION SLIGHTLY EXCEEDING MARKET EXPECTATIONS THE DIVIDEND WAS RAISED 73 TO 103 PENCE A SHARE MEETING PREVIOUS FORECASTS 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 9307010097 930701 INTERNATIONAL JAPANESE MAKE TRADE GESTURE PRIOR TO SUMMIT BY MASAYOSHI KANABAYASHI STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AFTER MONTHS OF US PRESSURE TO OPEN ITS GLASS MARKET JAPAN TOOK THE UNUSUAL STEP OF ASKING ITS FLATGLASS MAKERS TO REVIEW THE WAY THEY DO BUSINESS YESTERDAY'S MOVE CAME A WEEK BEFORE THE GROUP OF SEVEN INDUSTRIALIZED NATIONS GATHER IN TOKYO FOR A SUMMIT MEETING AT WHICH JAPAN'S HUGE TRADE SURPLUS WILL BE A CENTRAL TOPIC JAPAN OFTEN MAKES SYMBOLIC CONCESSIONS ON TRADE ISSUES WHEN THE US IS ABOUT TO TURN UP THE HEAT WASHINGTON HAS HELD UP THE GLASS MARKET AS A PRIME EXAMPLE OF HOW JAPAN SHUTS OUT IMPORTS YESTERDAY'S STEP BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY CAME ONE DAY AFTER JAPAN'S FAIR TRADE COMMISSION SAID IN A REPORT THAT IT IS DIFFICULT FOR COMPETITORS TO ENTER JAPAN'S GLASS MARKET BUT THE FTC REPORT SAID THE JAPANESE GLASS MAKERS AREN'T GUILTY OF RESTRAINING FREE COMPETITION FLAT GLASS IS USED MAINLY IN BUILDINGS AND AUTOMOBILES MITI ASKED JAPAN'S THREE FLATGLASS MAKERS TO REVIEW THEIR SYSTEM OF GIVING REBATES TO WHOLESALERS A KEY TO THEIR GRIP ON THE HOME MARKET IT ALSO CALLED ON THE THREE COMPANIES TO ABIDE EVEN MORE THOROUGHLY BY JAPAN'S ANTIMONOPOLY LAW AND ENSURE THEY DON'T BLOCK DISTRIBUTORS FROM SELLING OTHER MAKERS' GLASS WE ASSESS IT HIGHLY THAT MITI QUICKLY RESPONDED TO THE FTC'S REPORT SAID AN OFFICIAL AT GUARDIAN JAPAN LTD THE COMPANY IS A UNIT OF GUARDIAN INDUSTRIES CORP A MICHIGAN GLASS MAKER THAT HAS PUSHED HARD TO ENTER JAPAN'S MARKET BUT WE DON'T THINK THE STEP TAKEN YESTERDAY IS A PANACEA THE OFFICIAL ADDED HE SAID JAPAN NEEDS TO PROMOTE GOVERNMENT PURCHASES OF FOREIGN CONSTRUCTION MATERIALS AND TO ENFORCE ITS ANTITRUST LAWS MORE STRICTLY JAPANESE GLASS MAKERS SAID THEY WOULD STUDY THE MITI REQUEST POSITIVELY WE WILL REVIEW THE AREAS THAT MITI SAYS MAY HAVE AN EXCLUSIONARY NATURE SAID A SPOKESMAN FOR ASAHI GLASS CO JAPAN'S BIGGEST MAKER OF FLAT GLASS TAKEN TOGETHER THE MITI REQUEST AND THE FTC REPORT APPEAR TO MARK AN ADMISSION BY JAPAN THAT THE AMERICANS ARE RIGHT A CARTEL SHUTS FOREIGNERS OUT OF JAPAN'S HUGE MARKET FOR FLAT GLASS IN JANUARY 1992 TOKYO AGREED TO TAKE STEPS TO OPEN THE MARKET SUCH AS ENCOURAGING JAPANESE FIRMS TO BUY FOREIGN GLASS IT ISN'T CLEAR WHAT EFFECT MITI'S STATEMENT WILL HAVE BUT IN JAPAN COMPANIES OFTEN COMPLY WITH BUREAUCRATIC SUGGESTIONS THE THREE JAPANESE FLATGLASS MAKERS ASAHI NIPPON SHEET GLASS CO AND CENTRAL GLASS CO ACCOUNTED FOR ALMOST ALL OF JAPAN'S 285 BILLION YEN 268 BILLION IN SHIPMENTS OF FLAT GLASS LAST YEAR FOR YEARS ASAHI NIPPON AND CENTRAL HAVE HELD MARKET SHARES OF ABOUT 50 30 AND 20 RESPECTIVELY CRUCIAL TO THEIR DOMINANCE IS THEIR SYSTEM OF REBATES THE GLASS MAKERS SET A SALES TARGET FOR THEIR PRIMARY WHOLESALERS AND LATER DETERMINE REBATES BASED ON HOW MUCH GLASS THE MIDDLEMEN SELL US CRITICS SAY THE PRACTICE ENCOURAGES DEALERS TO CONCENTRATE ON MOVING HIGH VOLUMES OF GLASS FROM A SINGLE SUPPLIER THE FTC SAID THAT OF JAPAN'S 399 PRIMARY WHOLESALERS OF FLAT GLASS JUST 12 DO BUSINESS WITH MORE THAN ONE GLASS MAKER SEPARATELY IN WASHINGTON US TRADE REPRESENTATIVE MICKEY KANTOR EXTENDED TO NOV 1 A DEADLINE FOR ACTION BY THE JAPANESE GOVERNMENT TO LIBERALIZE ITS CONSTRUCTION PROCUREMENT POLICIES MR KANTOR WHO HAD SET A JUNE 30 DEADLINE SAID THE ACTION WAS JUSTIFIED BECAUSE JAPAN HAS AGREED TO NEGOTIATE WITH US ON THE BASIS OF A JUNE 7 PROPOSAL BUT HE WARNED THAT SANCTIONS WOULD BE FORTHCOMING IF A SATISFACTORY AGREEMENT WASN'T REACHED MR KANTOR NOTED THE US DOESN'T EXPECT TO TAKE UP NEGOTIATIONS OVER CONSTRUCTION PROCUREMENT UNTIL AFTER A NEW JAPANESE GOVERNMENT IS FORMED NATIONAL ELECTIONS IN JAPAN ARE SCHEDULED FOR JULY 18 9307010096 930701 AMERICAN HEALTH PROPERTIES INC DENVER AMERICAN HEALTH PROPERTIES INC SAID IT COMPLETED A 173 MILLION INVESTMENT IN A 190BED ACUTE CARE HOSPITAL IN HALSTEAD KAN THE REAL ESTATE TRUST SAID IT HAS LEASED THE FACILITY TO A UNIT OF CLOSELY HELD PARACELSUS HEALTHCARE CORP AN OWNER AND OPERATOR OF HOSPITALS BASED IN PASADENA CALIF AMERICAN HEALTH SAID IT PURCHASED 143 MILLION OF 10YEAR INDUSTRIAL REVENUE BONDS ISSUED BY THE CITY OF HALSTEAD WHICH OWNS THE HOSPITAL THOSE BONDS ARE SECURED BY THE HOSPITAL AND AMERICAN HEALTH HAS THE OPTION AT ANY TIME TO EXCHANGE THE BONDS FOR OWNERSHIP OF THE HOSPITAL THE COMPANY WHICH IS ALSO PROVIDING 3 MILLION IN CAPITAL EQUIPMENT LEASE FINANCING TO PARACELSUS SAID INTEREST PAYMENTS ON THE BONDS WILL BE SUPPORTED BY THE RENTAL OBLIGATION OF PARACELSUS 9307010095 930701 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG LIKE A FIERCE DINOSAUR MICROSOFT'S WINDOWS SOFTWARE DOMINATES ITS REALM IT HAS SOLD 25 MILLION COPIES IN THE PAST THREE YEARS AND SALES OF PROGRAMS THAT RUN IN CONJUNCTION WITH WINDOWS RELYING ON GRAPHICAL ICONS PULLDOWN MENUS AND A MOUSE TO MAKE IBMCOMPATIBLE PCS MUCH EASIER TO USE HAVE SURPASSED THOSE OF PROGRAMS ABLE TO RUN ONLY WITH THE CREAKY MSDOS OPERATING SYSTEM BUT NOW A CONFUSING VARIETY OF WINDOWS OFFSPRING ARE IN THE WORKS OR ALREADY EMERGING FROM MICROSOFT'S LABS LIKE THE GENETICALLY ENGINEERED DINOSAURS IN THE MOVIE JURASSIC PARK IT'S HARD TO KEEP TRACK OF THEM ONCE THEY'RE LOOSE SO HERE'S A BRIEF FIELD GUIDE TO THE VARIOUS SPECIES OF WINDOWS WINDOWS 31 IS THE CURRENT MAINSTREAM VERSION DESIGNED TO RUN ON STANDARD DESKTOP AND PORTABLE PCS IT ACCOUNTS FOR THE VAST MAJORITY OF WINDOWS SALES AND COMES INSTALLED ON MOST NEW PCS IT'S AN ORGANIZING ENVIRONMENT FROM WHICH YOU CAN RUN OTHER SOFTWARE LIKE WORD PROCESSORS BUT IT ISN'T A TRUE OPERATING SYSTEM THE UNDERLYING SOFTWARE ON EVERY COMPUTER THAT DIRECTLY CONTROLS THE BASIC FUNCTIONS OF PC HARDWARE IT CAN'T WORK WITHOUT DOS WINDOWS NT HAS BEEN MUCH TALKED ABOUT LATELY BUT IT ISN'T MEANT TO BE USED BY MOST COMPUTER OWNERS THIS PROGRAM WHICH WON'T BECOME AVAILABLE UNTIL LATER THIS YEAR IS AIMED INSTEAD AT SERVERS THE MASTER COMPUTERS THAT CONTROL CLIENTSERVER NETWORKS A SECOND CATEGORY OF USERS IS EXPECTED TO BE ENGINEERS AND OTHERS WHO NEED COLOSSAL AMOUNTS OF COMPUTING POWER AT THEIR DESKS ANYONE PLANNING TO RUN WINDOWS NT AT PEAK FORM SHOULD FIGURE ON GETTING A MONSTER PC WITH THE LATEST PROCESSOR A STAGGERING 16 MEGABYTES OF MEMORY AND 200 MEGABYTES OR MORE OF HARD DISK SPACE ON THE SCREEN IT LOOKS IDENTICAL TO WINDOWS 31 BUT IT IS A TRUE OPERATING SYSTEM INTERACTING DIRECTLY WITH THE PC HARDWARE AND ELIMINATING THE NEED FOR DOS WINDOWS FOR WORKGROUPS IS A MODIFIED VERSION OF WINDOWS 31 WITH FUNCTIONS BUILT IN FOR LIMITED NETWORKING OF COMPUTERS AMONG A SMALL GROUP OF COWORKERS IT ENABLES A COUPLE OF DOZEN COMPUTERS TO SHARE FILES EXCHANGE ELECTRONIC MAIL KEEP A JOINT ONLINE CALENDAR OF MEETINGS AND MORE IT NEEDS DOS TO RUN WINDOWS FOR PEN COMPUTING IS SHIPPED INSTALLED ON A FEW PORTABLE COMPUTERS THAT WORK WITH A SPECIAL ELECTRONIC PEN WRITING DIRECTLY ON THE SCREEN THIS VERSION OF WINDOWS PERMITS USERS TO ENTER TEXT WITH A PEN LIKE ALL OTHER PEN PROGRAMS I'VE SEEN THIS ONE FEATURES DECIDEDLY IMPERFECT HANDWRITING RECOGNITION CHICAGO IS THE CODE NAME FOR THE NEXT MAINSTREAM VERSION OF WINDOWS DUE AROUND MID1994 LIKELY TO BE CALLED WINDOWS 40 IT IS EXPECTED TO INCORPORATE THE NETWORKING FEATURES OF WINDOWS FOR WORKGROUPS AND LIKE WINDOWS NT TO BE A TRUE OPERATING SYSTEM THAT WON'T REQUIRE THE SEPARATE MSDOS PROGRAM SOME MICROSOFT INSIDERS SEE CHICAGO AS THE ULTIMATE MACINTOSH KILLER WITH FEATURES THAT WILL MATCH OR EXCEED THE REMAINING ADVANTAGES APPLE'S SOFTWARE HAS OVER CURRENT VERSIONS OF WINDOWS THESE ARE RUMORED TO INCLUDE A COMBINED FILEMANAGEMENT AND PROGRAMLAUNCHING SYSTEM AND THE ABILITY TO LABEL FILES WITH LONG REAL ENGLISH NAMES CAIRO IS PLANNED AS THE HEAVYDUTY SUCCESSOR TO WINDOWS NT EXPECTED TO BE READY IN 1994 OR 1995 IT IS RUMORED TO INCORPORATE A RADICALLY NEW FILE SYSTEM THAT WILL LET USERS CONDUCT SOPHISTICATED SEARCHES FOR PRECISE INFORMATION AMONG MANY THOUSANDS OF FILES MODULAR WINDOWS IS THE GENERAL NAME FOR A FAMILY OF STRIPPEDDOWN VERSIONS OF WINDOWS THAT ARE INTENDED TO BE BUILT INTO A WIDE VARIETY OF DEVICES OTHER THAN STANDARD PCS INCLUDING ENTERTAINMENT SYSTEMS AND OFFICE MACHINES THE MODULAR WINDOWS INTERFACE IS GRAPHICAL AND IT SHARES UNDERLYING COMPUTER CODE WITH MAINSTREAM WINDOWS BUT IN MANY CASES WHAT PEOPLE SEE ON THE SCREENS OF THESE DEVICES WON'T LOOK MUCH LIKE THE WINDOWS SCREENS ON A PC INSTEAD OF USING MENUS AND ICONS PEOPLE WILL CONTROL MANY OF THESE MACHINES BY TOUCHING GRAPHICAL BUTTONS ON A SMALL SCREEN ONE SPECIES OF MODULAR WINDOWS IS AIMED AT HOMEENTERTAINMENT DEVICES AND OTHER NEW MACHINES THAT WILL WORK THROUGH OR CONTROL TELEVISION SETS SO FAR IT'S ONLY AVAILABLE IN TANDY'S VIS MACHINE A DISAPPOINTING PRODUCT THAT PLAYS SOFTWARE ON COMPACT DISKS THROUGH A TV ANOTHER MODULAR WINDOWS VARIANT IS BEING INCORPORATED INTO MICROSOFT AT WORK A PRODUCT LINE INTENDED TO PROVIDE A STANDARD USER INTERFACE AND STANDARD COMMUNICATIONS LINKS FOR A NEW GENERATION OF FAX MACHINES COPIERS AND PHONES THAT SOME BIG COMPANIES ARE EXPECTED TO INTRODUCE LATER THIS YEAR A THIRD MODULAR WINDOWS VERSION IS A PART OF WINPAD MICROSOFT SOFTWARE DESIGNED TO OPERATE HANDHELD PERSONAL DIGITAL ASSISTANTS THESE ARE POCKETSIZED COMPUTERS THAT CAN BE USED TO STORE APPOINTMENTS AND PHONE NUMBERS AND COMPOSE SHORT MEMOS FOR SENDING BY FAX OR ELECTRONIC MAIL THE FIRST PDAS USING WINPAD ARE LIKELY TO BECOME AVAILABLE EARLY NEXT YEAR UNLIKE APPLE'S NEWTON THEY AREN'T PLANNED AS REVOLUTIONARY GIZMOS BUT ARE DESIGNED TO BE CLOSE COMPANIONS BOTH TO DESKTOP COMPUTERS RUNNING WINDOWS AND TO OFFICE MACHINES DESIGNED TO MEET THE MICROSOFT AT WORK SPECIFICATIONS MICROSOFT HASN'T YET ANNOUNCED ANY VERSIONS OF WINDOWS FOR CONTROLLING DISHWASHERS OR LAWN MOWERS BUT AT THE RATE THEY'RE GOING I WOULDN'T RULE IT OUT FOR MICROSOFT SEES WINDOWS AS THE TYRANNOSAURUS REX OF BOTH OFFICE AND HOME 9307010094 930701 REVIEW & OUTLOOK EDITORIAL MILOSEVIC'S MARTYR THE REVOLUTION IS LIKE SATURN IT EATS ITS OWN CHILDREN THE SERBIANS HAVE DONE A GOOD JOB OF MAKING THEIR VERY NAME SYNONYMOUS IN HISTORY NOW WITH SOMETHING QUITE AWFUL SO IT IS WORTH NOTING A DEVELOPMENT THAT SUGGESTS THE SERBS ARE NOT A MONOLITH THAT THERE IS AT LEAST A CRACK IN THE FACE OF THIS EVIL WITH THE RECENT ARREST OF SERBIAN RENEWAL MOVEMENT LEADER VUK DRASKOVIC SERBIAN PRESIDENT SLOBODAN MILOSEVIC SEEMS TO HAVE EMBARKED ON A PATH SO MANY DICTATORS TAKE WHEN THEY FEEL THEIR POWER WEAKENING THOUGH IN THE PAST MILOSEVIC HAS SAILED CONFIDENTLY THROUGH ELECTIONS HIS RECENT CRACKDOWN ON FELLOW SERBIAN NATIONALISTS BETRAYS AN INCREASING SKITTISHNESS ABOUT HIS POSITION THIS WEEK THE EUROPEAN COMMUNITY CONDEMNED THE TREATMENT OF MR DRASKOVIC AND HIS WIFE WHO IT SAID WERE SEVERELY BEATEN IN POLICE CUSTODY THEY HAVE BEEN HELD ON CHARGES OF ATTEMPTING TO OVERTHROW THE CONSTITUTIONAL ORDER SINCE THE TWODAY RIOT FOLLOWING YUGOSLAV PRESIDENT DOBRICA COSIC'S OUSTER JUNE 1 THE EC'S CONDEMNATION IN ITSELF WILL NOT SHIFT THE POLITICAL BALANCE IN BELGRADE DRAMATICALLY DAVID OWEN FRANCOIS MITTERRAND AND OTHERS ALREADY HAVE PROTESTED HUMAN RIGHTS VIOLATIONS IN CONNECTION WITH THE DRASKOVIC CASE BUT HAVE HIT A BRICK WALL OTHER SERBIAN OPPOSITION GROUPS HAVE LARGELY REMAINED SILENT ABOUT THE ARREST BUT OBSERVERS IN BELGRADE SAY THE EC CONDEMNATION AT LEAST HAS GIVEN A MORALE BOOST TO DRASKOVIC SUPPORTERS WHO HAVE BEEN CIRCULATING PETITIONS AND STAGING PEACEFUL DEMONSTRATIONS DEMANDING HIS RELEASE MR DRASKOVIC A CHARISMATIC FIGURE WHOSE PARTY BOASTS THE MOST MEMBERS OF ANY OPPOSITION GROUP GAINED PROMINENCE BEFORE THE BREAKUP OF YUGOSLAVIA WITH HIS DRAMATIC CROWDPLEASING APPEALS TO SERBIAN NATIONALISM PERHAPS WITHOUT INTENDING TO DO SO HE PROBABLY CONTRIBUTED TO SERBIA'S SUBSEQUENT AGGRESSIVENESS BUT SINCE THE FIGHTING BEGAN HE HAS RAILED AGAINST ETHNIC CLEANSING LEADING MANY TO BELIEVE THAT HIS BRAND OF NATIONALISM COMES MUCH CLOSER TO DEMOCRATIC LIBERALISM THAN WAS EVIDENT TWO YEARS AGO MR DRASKOVIC IS JUST ONE OF SEVERAL POTENTIAL THREATS MILOSEVIC HAS TRIED TO WEED FROM HIS GARDEN IN RECENT WEEKS FEDERAL ARMY CHIEF OF STAFF GENERAL ZIVOTA PANIC WAS THE FIRST TO GO FOLLOWED BY MR COSIC THE FACT THAT MR COSIC WAS ONE OF THE ORIGINATORS OF THE IDEOLOGY OF SERBIAN ETHNIC PURITY DID NOT HELP HIM ONCE MILOSEVIC HAD NO FURTHER NEED FOR THE RELATIVELY MODERATE NATIONALIST THE OUSTED PRESIDENT RESPONDED ANGRILY CALLING MILOSEVIC AN IDEOLOGICAL PUPIL OF STALIN'S MR DRASKOVIC IS NOT YET DEVOURED AS INTERNATIONAL DISAPPROVAL AND DOMESTIC HARDSHIPS MOUNT MILOSEVIC WILL LIKELY BECOME MORE NERVOUS AND OPPOSITION GROUPS BOLDER MILOSEVIC MAY EVEN FIND IT WISE TO RELEASE MR DRASKOVIC BEFORE PUBLIC SYMPATHY SWELLS INTO HERO WORSHIP ONCE RELEASED A MUCH WISER MR DRASKOVIC MIGHT BE THE COUNTRY'S BEST BET HOWEVER SLIM IN THE QUEST FOR A LESS LETHAL BRAND OF SERBIAN NATIONALISM 9307010093 930701 IF BILL REFUSES TO SPILL THE BEANS MAYBE PEROT HAS SOME ANSWERS BY RACHEL KESSLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PROTESTERS PLAN TO MARCH ON THE WHITE HOUSE MONDAY TO GET BILL CLINTON TO TELL THE TRUTH ABOUT UFOS MEMBERS OF OPERATION RIGHT TO KNOW WANT THE PRESIDENT TO ACKNOWLEDGE THAT UNIDENTIFIED FLYING OBJECTS EXIST AND TO RELEASE GOVERNMENT DATA DOCUMENTING SIGHTINGS IT USED TO BE THAT THE UFO COMMUNITY WAS AFRAID OF RIDICULE AND WE WERE STAYING HOME NOW WE'RE NOT STAYING HOME SAYS ELAINE DOUGLASS A SPOKESWOMAN FOR THE GROUP WHICH HAS OFFICES HERE AND IN GEORGIA AND CALIFORNIA OUR MAIN GOAL IS TO END UFO SECRECY SAYS DONALD RATSCH AN ORGANIZER AT OPERATION RIGHT TO KNOW WHICH COUNTS ABOUT 150 SUBSCRIBERS TO ITS NEWSLETTER THIS IS A DEMONSTRATION TO END DISINFORMATION REGARDING GOVERNMENT CONTACT WITH OTHER WORLDS THE GROUP CLAIMS THAT THE US GOVERNMENT HAS HAD INFORMATION DOCUMENTING THE EXISTENCE OF VISITORS FROM OUTER SPACE SINCE 1947 IN A PRESS RELEASE THE GROUP CONTENDS THAT PEOPLE CLAIMING TO HAVE SEEN UFOS ARE EVERYWHERE THE RELEASE SAYS FOR EXAMPLE THAT IN UNION GROVE WIS A MAN WAS DRIVING ON HIGHWAY 11 AND SAW A VERY LARGE UFO ABOUT THE SIZE OF THREE FOOTBALL FIELDS ABOUT A HALFDOZEN MEMBERS OF THE GROUP WARMED UP FOR THE WHITE HOUSE MARCH WITH A PROTEST YESTERDAY OUTSIDE OFFICES OF THE WASHINGTON POST CHARGING THAT THE PAPER'S TOP EDITORS AND INTELLIGENCE REPORTERS WOULDN'T READ THEIR MATERIALS SOME CARRIED SIGNS SAYING THE POST HAS A FLAT EARTH MINDSET ON UFOS BUT WASHINGTON POST MANAGING EDITOR ROBERT KAISER SAYS HE DID INDEED READ SOME OF THE MATERIAL ADDING THAT SOME OF IT WAS PROVOCATIVE AND THAT THE POST IS CHECKING IT OUT VARIOUS FEDERAL AGENCIES HAVE LOOKED INTO UFOS OVER THE YEARS BUT SAYS DAVID D WIPPEL EXECUTIVE DIRECTOR OF THE ASSOCIATION OF FORMER INTELLIGENCE OFFICERS I SEE NO REASON WHY THE GOVERNMENT WOULD WITHHOLD INFORMATION IF THERE WERE ANY INFORMATION MEMBERS OF OPERATION RIGHT TO KNOW SENT A LETTER TO PRESIDENT CLINTON ASKING HIM TO MEET WITH THE GROUP AND TO DISCLOSE WHAT HE KNOWS ABOUT UFOS MS DOUGLASS SAYS THE PRESIDENT DID RESPOND WITH A FORM LETTER SAYING HE WILL TAKE THE GROUP'S IDEAS INTO CONSIDERATION AND KEEP THEM CLOSE TO HIS HEART BUT MR CLINTON DECLINED TO ATTEND A MEETING 9307010092 930701 MARSH & MCLENNAN CREATES COMPANY WITH JP MORGAN MARSH & MCLENNAN COS AND JP MORGAN & CO HAVE ORGANIZED A NEW COMPANY THAT LETS CERTAIN LLOYD'S OF LONDON SYNDICATES WRITE BUSINESS BACKED BY OUTSIDE SOURCES INSTEAD OF JUST LLOYD'S MEMBERS NEXT YEAR CORPORATE INVESTORS WILL BE ALLOWED TO INVEST DIRECTLY IN LLOYD'S SYNDICATES MAKING IT POSSIBLE FOR LLOYD'S SYNDICATES TO WRITE MORE BUSINESS UNDERWRITERS CAPITAL MERRETT LTD IS SAID TO BE THE FIRST COMPANY OF ITS KIND ORGANIZED UNDER THE NEW RULE UNDERWRITERS CAPITAL WILL REINSURE NINE SYNDICATES MANAGED BY MERRETT GROUP A MAJOR LLOYD'S UNDERWRITER UNDERWRITERS CAPITAL WILL BEGIN WITH 70 MILLION IN CAPITAL MARSH & MCLENNAN A NEW YORKBASED INSURANCE BROKER AND JP MORGAN & CO A NEW YORK BANKING COMPANY EACH PUT UP ABOUT 7 MILLION THE REMAINDER CAME FROM INSTITUTIONAL AND CORPORATE INVESTORS JOHN BANEY FORMER PRESIDENT OF CIGNA CORP'S INTERNATIONAL AND BROKERAGE DIVISION IS PRESIDENT OF CHIEF EXECUTIVE OFFICER OF UNDERWRITERS CAPITAL WHICH IS BASED IN BERMUDA 9307010091 930701 LEISURE & ARTS THE MOBILE GUIDE ROACHES AND REDHEADS TOURING A SMALL THAI TOWN BY KAREN SWENSON SONGKHLA THAILAND THE TAXI DRIVER WHO HAD BROUGHT ME HERE FROM HAT YAI THE SIN CITY OF SOUTHERN THAILAND CARRIED MY BAGS TO MY ROOM UPSTAIRS IN THE TINY HOTEL HE THEN TRIED TO INSINUATE HIS WAY INTO THE ROOM THIS SHOULD HAVE TOLD ME SOMETHING SINCE NEITHER OF THESE ARE TYPICAL THAI TAXI DRIVER ACTIONS HOWEVER EITHER DUE TO THE COLD THAT WAS CAUSING ME TO SUPPURATE IN MY OWN JUICES OR JUST THE DAZE ONE GETS INTO COMING TO A NEW TOWN IT WASN'T UNTIL THE NEXT DAY THAT I REALIZED I HAD BOOKED MYSELF INTO A BROTHEL IT WAS A LITTLE LIKE LIVING IN A GIRLS' DORMITORY PARTICULARLY ON FRIDAY NIGHT WHEN A NUMBER OF THEM CAME HOME DRUNK AND THREW UP IN THE BATHROOM ACROSS THE HALL THERE ARE ESSENTIALLY TWO ATTRACTIONS TO SONGKHLA A SMALL FISHING TOWN ON THE EAST COAST OF THAILAND 1 THERE ARE PRACTICALLY NO TOURISTS AND 2 THERE IS A MUSEUM CREATED FROM A RENOVATED GOVERNOR'S MANSION WITH A WAD OF TISSUES IN MY POCKET I LEFT MY SHOES AT THE FRONT DOOR OF THIS LARGE HOUSE AND GLIDED ABOUT ROOMS WITH FLOORS OF HANDHEWN TEAK THAT HAVE BEEN POLISHED BY A HUNDRED YEARS OF BARE SOLES THE ROOMS ARE LARGE AND COOL BECAUSE OF DEEP EAVES OVER THE WINDOWS STANDING IN A SHADOWY ROOM WHERE THE GLEAMING FLOORS REPEAT THE FORMS OF MUSEUM CASES HOLDING BUDDHAS ONE LOOKS OUT WITH A SENSE OF INDOLENT ELEGANCE THROUGH TALL WINDOWS CLOSED ACROSS THE BOTTOM BY A CHINESE RED FENCE TO BRILLIANT SUNSHINE AND STARTLING ACIDGREEN TREES THE MUSEUM COLLECTION IS ECLECTIC KHMER STATUES THAI BUDDHAS GANESH THE HINDU ELEPHANT GOD WITH A SWEEPING ARCH OF TRUNK MING POTTERY THE SILVER GSTRINGS THAT LITTLE THAI GIRLS WORE THREE GENERATIONS AGO BETEL BOXES AND BRONZE JEWELRY FROM AN ARCHAEOLOGICAL DIG OUTSIDE IN THE COURTYARD THERE IS A SHADOWPUPPET THEATER EQUIPPED WITH ITS REGIMENT OF LACY DRAMATIS PERSONAE THE STAIR THAT LEADS DOWN IS BEING LITERALLY EATEN BY A TREE THAT HAS ALREADY CONSUMED THE BALUSTRADE INTO ITS TRUNK WALKING AROUND THE TOWN BUYING ORANGES IN THE MARKET THE ONLY OTHER NONASIAN I SAW WAS A BIGBELLIED REDHAIRED MAN WHO POINTEDLY IGNORED ME AFTER A NAP IN MY OVENLIKE ROOM WHICH HAD TWO WINDOWS LOOKING DIRECTLY INTO THE ROOMS OF OTHER PEOPLE'S HOUSES AND WALLS DECORATED WITH PALE GECKOS I WENT DOWNSTAIRS TO FIND THE REDHAIRED MAN SITTING IN ONE OF THE LOBBY CHAIRS SLINGING OLD TESTAMENT QUOTES AT THE LITTLE WHORES AS THEY SCURRIED UP AND DOWN THE STAIRS HIS NAME WAS KEVIN A BORNAGAIN CHRISTIAN HE HAD COME TO THAILAND FROM ALASKA HE WAS WORKING FOR A MAN HE KNEW ONLY AS JACK A 'NAM VET WHO HAD A BOAT IN THE HARBOR THAT WAS USED TO RESCUE VIETNAMESE BOAT PEOPLE OR SO KEVIN BELIEVED HE TOLD ME ABOUT A DOCTOR DOWN THE STREET WHO SPOKE ENGLISH I FOUND THE OFFICE EASILY SINCE IT WAS THE ONLY HOUSE WITH A MERCEDES IN FRONT OF IT NEVER HAVE I BEEN SO TOTALLY CHASTELY EXAMINED I REMOVED NOTHING AND HE LISTENED TO EVERYTHING THROUGH WALLS OF CLOTHING GIGGLING ALL THE WHILE INSTEAD OF GETTING FORMAL WHEN EMBARRASSED THAIS GIGGLE THIS CAUSES THEM TROUBLE WITH WESTERNERS WHO ARE ALWAYS SURE THEY ARE BEING MADE FUN OF HE PRESCRIBED GIGGLING SOME MORE A SUFFICIENT NUMBER OF PILLS TO MAKE MY LUGGAGE OVERWEIGHT IF I DIDN'T TAKE THEM ALL BEFORE RETURNING HOME HE ALSO DIRECTED ME TO A PHARMACY 9307010090 930701 SENATE CLEARS FRAMPTON FOR POSITION AT INTERIOR WASHINGTON THE SENATE CONFIRMED GEORGE FRAMPTON THE FORMER PRESIDENT OF THE WILDERNESS SOCIETY TO BE ASSISTANT INTERIOR SECRETARY FOR FISH AND WILDLIFE AND PARKS MR FRAMPTON WAS CONFIRMED BY VOICE VOTE SOME GROUPS REPRESENTING CONSERVATIVE LANDOWNERS AND WESTERN ECONOMIC INTERESTS HAD UNSUCCESSFULLY SOUGHT TO BLOCK HIS APPOINTMENT BY PAINTING HIM AS AN ENVIRONMENTAL EXTREMIST BESIDES SERVING AT THE WILDERNESS SOCIETY MR FRAMPTON HAS PRACTICED LAW IN WASHINGTON AND SERVED AS AN ASSISTANT SPECIAL PROSECUTOR ON THE WATERGATE SPECIAL PROSECUTION FORCE SEPARATELY THE INTERIOR DEPARTMENT ANNOUNCED THE FINAL SELECTION OF DELAWARE NORTH COS A FAMILYOWNED BUSINESS BASED IN BUFFALO NY TO BE THE CONCESSIONER FOR YOSEMITE NATIONAL PARK IN CALIFORNIA THE COMPANY HAD BEEN TENTATIVELY TAPPED BY THE BUSH ADMINISTRATION LAST DECEMBER THE YOSEMITE CONTRACT NOW GOES TO CONGRESS FOR A 60DAY WAITING PERIOD DELAWARE NORTH IS SCHEDULED TO TAKE OVER OCT 1 THE AGENCY SAID THE COMPANY WILL INVEST 100 MILLION IN VISITOR FACILITIES OVER THE 15YEAR CONTRACT LODGING UNITS IN YOSEMITE WILL BE CUT 15 WHILE SOME SUPPORT FACILITIES WILL BE MOVED OUTSIDE THE PARK 9307010089 930701 WEDNESDAY'S MARKETS STOCKS FINISH MIXED AS TRADERS AWAIT REPORTS BY DOUGLAS R SEASE STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES WERE MIXED AND BOND PRICES WERE UNCHANGED AHEAD OF IMPORTANT ECONOMIC REPORTS AND A LONG HOLIDAY WEEKEND THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 277 TO 351608 STANDARD & POOR'S 500STOCK INDEX EDGED DOWN 016 TO 45053 WHILE THE NASDAQ COMPOSITE INDEX ROSE 288 TO 70395 A SURGE OF BUYING IN AIRLINE ISSUES DROVE THE DOW JONES TRANSPORTATION AVERAGE UP 1933 TO 154992 ANALYSTS SAID THAT FOR THE MOST PART TRADERS WERE MOVING CAUTIOUSLY AHEAD OF TODAY'S RELEASE OF THE NATIONAL ASSOCIATION OF PURCHASING MANAGERS SURVEY AND TOMORROW'S REPORT ON JUNE EMPLOYMENT THE REPORTS WILL GIVE THE FIRST GLIMPSE OF HOW THE ECONOMY FARED IN JUNE ALTHOUGH SOME ECONOMISTS ARE LOOKING FOR BOTH REPORTS TO SHOW MODEST ECONOMIC GROWTH THERE ARE MANY SKEPTICS WHO SUGGEST THE DATA WILL SHOW THE ECONOMY SLOWING SOMEWHAT THE GOVERNMENT REPORTED YESTERDAY THAT FACTORY ORDERS IN MAY FELL FOR THE THIRD CONSECUTIVE MONTH AND FACTORY SHIPMENTS REMAIN WEAK SHORTTERM TRADERS ALSO FACE THE PROBLEM OF WHETHER TO TAKE POSITIONS TODAY OR TO WAIT FOR THE EMPLOYMENT REPORT TOMORROW WHEN MANY OF THEIR COLLEAGUES WILL BE AWAY FROM THEIR DESKS GETTING AN EARLY START ON THE HOLIDAY WEEKEND THE EXPECTED THIN TRADING TOMORROW COULD EXACERBATE PRICE MOVES IN EITHER DIRECTION DESPITE A FLURRY OF EVIDENCE THAT THE ECONOMY REMAINS WEAK SOME BOND TRADERS GOT A RELAPSE OF INFLATION JITTERS THEY ARE CLOSELY WATCHING RISING GRAIN PRICES WHICH ARE BEING ATTRIBUTED TO HEAVY RAINS AND FLOODING IN THE MIDWEST THEY ALSO WORRY THAT ALTHOUGH LONGTERM TREASURY BOND YIELDS ARE HOVERING AT LOWS THE COMMODITY RESEARCH BUREAU'S INDEX OF FUTURES PRICES A WIDELY WATCHED INFLATION BAROMETER ISN'T BEHAVING SIMILARLY NEVERTHELESS MANY ANALYSTS ARE CONVINCED THAT INFLATION IS UNDER CONTROL AND THAT BOND YIELDS ARE HEADED LOWER AT LEAST THROUGH THIS SUMMER WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX DROPPED 040 TO 10594 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME ON THE NEW YORK STOCK EXCHANGE TOTALED 2809 MILLION SHARES RISING ISSUES OUTNUMBERED DECLINERS ON THE BIG BOARD 1125 TO 830 BOND PRICES WERE LITTLE CHANGED THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR ISSUE STOOD AT 667 THE DOLLAR ROSE IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17035 MARKS AND 10700 YEN COMPARED WITH 16885 MARKS AND 10650 YEN TUESDAY 9307010088 930701 FIDELITY INVESTMENTS PREPARES TO LAUNCH TOP50 MUTUAL FUND A WALL STREET JOURNAL NEWS ROUNDUP FIDELITY INVESTMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO CREATE A STOCK MUTUAL FUND CALLED THE FIDELITY FIFTY FUND THE FUND WILL REVIEW EXISTING FIDELITY FUNDS AND SEE WHAT THE HOT STOCK IDEAS WERE AND INCORPORATE THEM INTO ONE FUND SAID ELIZABETH JOHNS EDITOR OF MUTUAL FUND ADVANCE A NEWSLETTER ON FUNDREGISTRATION FILINGS THE FUND WHICH WOULD HOLD 40 TO 60 US AND FOREIGN STOCKS WOULD BE LESS DIVERSE AND PERHAPS HAVE WIDER PRICE SWINGS THAN LARGER FIDELITY FUNDS WHICH CAN OWN SEVERALHUNDRED STOCKS THE FUND'S NAME IS REMINISCENT OF THE NIFTY FIFTY A GROUP OF FASTGROWING HIGHPRICED STOCKS IN THE EARLY 1970S THOSE STOCKS COLLAPSED WITH THE MARKET IN 1973 AND 1974 JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A CHICAGOBASED FUND NEWSLETTER SAID THE NEW FUND PROBABLY WOULD AVOID SUCH EXPENSIVE STOCKS AND GIVE INVESTORS ACCESS TO FIDELITY'S OVERALL RESEARCH STRENGTH THE CONCEPT OF A FUND MADE UP OF THE BEST IDEAS FROM FIDELITY'S MANAGERS COULD RAISE QUESTIONS IN INVESTORS' MINDS SOME COMPETITORS SAID THIS KIND OF STARTLES ME THAT SOMEBODY WOULD ADMIT THAT THEY HAVE BAD IDEAS IN THE OTHER FUNDS SAID JOHN BUTLER PRESIDENT OF INVESCO FUNDS GROUP JUST REMEMBER THAT A CAMEL IS A HORSE DESIGNED BY A COMMITTEE BUT MS JOHNS SAID IT SEEMS LIKE A PRETTY GOOD MARKETING CONCEPT IT WOULD BE CERTAINLY EASY TO SELL TO INDIVIDUAL INVESTORS IF YOU SAID THIS IS THE BEST OF THE BEST AT FIDELITY THE EARLIEST LAUNCH OF THE FUND WOULD BE AUG 31 9307010087 930701 PANEL VOTES TO MAKE CFTC REAPPLY RULES TO BRENT CONTRACTS WASHINGTON A HOUSE AGRICULTURE SUBCOMMITTEE APPROVED A BILL THAT WOULD REAPPLY THE COMMODITY FUTURES TRADING COMMISSION'S ANTIFRAUD AND MANIPULATION RULES TO CERTAIN OIL CONTRACTS AND OTHER ENERGY TRANSACTIONS REP GLENN ENGLISH D OKLA CHAIRMAN OF THE PANEL SPONSORED THE BILL TO TRY TO REVERSE AN EARLIER CFTC RULING THAT EXEMPTED 15DAY BRENT OIL CONTRACTS AND SIMILAR TRANSACTIONS KNOWN AS FORWARD CONTRACTS FROM ALL COMMODITIES LAWS INCLUDING THE CFTC'S ANTIFRAUD RULES BRENT IS A WIDELY TRADED NORTH SEA CRUDE THAT HELPS SET THE PRICE OF OTHER CRUDES A FORWARD CONTRACT IS ONE IN WHICH TWO PARTIES AGREE TO THE PURCHASE AND SALE OF A COMMODITY AT SOME FUTURE TIME UNDER SUCH CONDITIONS AS THE PARTIES AGREE DURING A HEARING YESTERDAY REP ENGLISH SAID THE CFTC DECISION TO EXEMPT THE BRENT OIL CONTRACTS FROM COMMODITIES LAWS SET A DANGEROUS PRECEDENT WE DON'T WANT TO SEND A SIGNAL THAT A REGULATORY BODY IS WITHDRAWING FROM ITS RESPONSIBILITY TO PREVENT FRAUD HE SAID SUPPORTERS OF THE CFTC RULING INCLUDING THE CFTC'S ACTING CHAIRMAN WILLIAM ALBRECHT HAVE MAINTAINED THAT BRENT OIL CONTRACTS AND SIMILAR TRANSACTIONS AREN'T FUTURES CONTRACTS WHICH ARE REGULATED BY THE CFTC THE CFTC RULING SIMPLY PROVIDED LEGAL CERTAINTY TO COMPANIES THAT USE FORWARD TRANSACTIONS SAID KEN RAISLER AN ATTORNEY REPRESENTING SEVERAL BIG ENERGY COMPANIES THE EXEMPTION IS NARROWLY DRAWN FOR A MARKETPLACE THAT HAS NEVER BEEN REGULATED BY ANY FEDERAL AGENCY INCLUDING THE CFTC MR RAISLER TOLD THE PANEL REP ENGLISH WAS UNFAZED BY THE OBJECTIONS OF MESSRS ALBRECHT AND RAISLER SAYING THE EXEMPTION WAS CRAFTED BY IVORY TOWER ECONOMISTS AT THE CFTC THE CFTC IS WHITTLING AWAY AT THE LAW HE SAID THE QUESTION WE'VE GOT TO COME TO IS WHETHER THIS CONGRESS IS GOING TO ADDRESS THAT OR NOT 9307010086 930701 OFF PORTLAND MAINE ISLANDERS CELEBRATE INDEPENDENCE DAY BUT SECEDING FROM A CITY HAS ITS PITFALLS LIKE WHERE TO GET NEW LAWN MOWER BY STEVE STECKLOW STAFF REPORTER OF THE WALL STREET JOURNAL LONG ISLAND MAINE THE ROADS ARE POCKED AND THE CARS ARE RUSTY THE PRINCIPAL BUSINESS IS LOBSTERING AND AS LOBSTERMEN ARE FOREVER SAYING BUSINESS ISN'T GOOD BUT THE CITIZENS OF THIS ISLE OFF PORTLAND IN CASCO BAY ARE SPENDING MONEY FOR A BIG CELEBRATION TODAY MAINE'S GOV JOHN MCKERNAN IS COMING HE MAY GO TO THE BEACH BARBECUE IT'S INDEPENDENCE DAY A LITTLE LIKE THE FOURTH OF JULY ONLY EARLIER YOU SEE LONG ISLANDERS ARE SECEDING TODAY FROM PORTLAND MAINE THE REASON RISING PROPERTY TAXES THE VOTE LAST NOVEMBER WASN'T EVEN CLOSE DECLARATION THEN WAR BUT AS THE RESIDENTS OF MAINE'S FIRST NEW TOWN IN 68 YEARS ARE LEARNING FAST INDEPENDENCE IS NO PICNIC IT CAN LEAD TO WAR SPURNED PORTLAND DEMANDED AND WON IN ARBITRATION BIG PAYMENTS FROM LONG ISLAND TO COVER CITY DEBT THAT CRUSHED EARLY SECESSIONIST HOPES FOR A GIGANTIC TAX CUT PORTLAND SEIZED A SCHOOL LAWN MOWER AND THE ISLAND'S BULLDOZER IT EVEN TRIED BEFORE BACKING OFF TO LAY CLAIM TO A DUMP TRUCK STILL SCRAPPY ISLANDERS VOW THEY WILL SURVIVE IF ANYBODY CAN MAKE THIS THING WORK IT'LL BE THE PEOPLE DOWN HERE DECLARES COLEMAN CLARK UNLOADING PRODUCE FROM A FERRY INTO HIS PICKUP TRUCK FOR DELIVERY TO THE ISLAND'S CENTURYOLD GENERAL STORE PORTLAND OFFICIALS THINK LONG ISLAND'S EUPHORIA MAY SOON SUBSIDE RUNNING A GOVERNMENT IS NOT AN EASY THING REGARDLESS OF SIZE SAYS PORTLAND'S NEW MAYOR ANNE PRINGLE WHO IS ATTEMPTING TO DISSUADE FOUR OF PORTLAND'S FIVE OTHER POPULATED ISLES FROM ALSO BOARDING THE FREEDOM TRAIN IT'LL BE DIFFICULT FOR SELECTMEN TO ASSESS PROPERTY VALUES FOR THEIR FRIENDS AND NEIGHBORS UNLIKE TONY NANTUCKET DUE SOUTH LONG ISLAND IS NOT A RICH RESORT IT HAS SOME NICE BEACHES AND SCENIC ROCKY SHORELINE BUT VISITORS STEP OFF THE FERRY ONTO A SPINDLY DOCK AND ARE GREETED BY A WELCOME SIGN SO FADED THAT IT IS BARELY LEGIBLE BEYOND AT THE TOP OF A HILL STANDS A GUTTED BUILDING THAT AT ONE TIME OR OTHER HAS BEEN A NAVY GUARD SHACK A PIZZA JOINT AND A COINOPERATED LAUNDRY ALSO THERE IS A RAMSHACKLE MILITARY BARRACKS THAT HASN'T HAD A PAINT JOB SINCE WORLD WAR II WHEN THE ISLAND WAS A REFUELING DEPOT FOR BATTLESHIPS LONG ISLAND HAS BUT ONE RESTAURANT THE SPAR JUST REOPENED FOR THE SEASON IT HAS 160 YEARROUND RESIDENTS AND SEVERAL HUNDRED SUMMER PEOPLE WHO HAVE NO CHOICE BUT TO RENT HOUSES SINCE THERE ARE NO QUAINT NEW ENGLAND INNS OR HOTELS NOT EVEN A SEEDY MOTEL THE NEW TOWN HALL IS AT THE END OF A ROW OF ABANDONED BUILDINGS ACROSS FROM A PILE OF RUSTING PIPES WITH A WATERFRONT VIEW OF A SMOKEBELCHING POWER PLANT CAREER POSSIBILITIES ARE SO LIMITED THAT MANY RESIDENTS MUST WORK AT A VARIETY OF JOBS TO PUT TOGETHER A LIVING MR CLARK WHEN HE ISN'T HAULING GOODS TO THE GENERAL STORE DELIVERS GASOLINE DOES CARPENTRY AND IS CHIEF OF THE VOLUNTEER FIRE DEPARTMENT IT PUTS OUT A HOUSE FIRE ABOUT ONCE EVERY 10 YEARS MICHAEL FLOYD WHO LIVES HERE TOO IS THE DEPUTY FIRE CHIEF AND EMERGENCY MANAGEMENT DIRECTOR WHEN HE ISN'T TENDING HIS 1200 LOBSTER TRAPS OR SELLING HIS CATCH FROM A GARAGE OUTSPOKEN LONG ISLANDER DORIS WOOD ONE OF THE FEW WHO OPPOSED SECESSION TENDS THE CASH REGISTER AT THE GENERAL STORE AND DRIVES THE SCHOOL BUS UNTIL THIS WEEK SHE WAS ALSO THE TOWN CONSTABLE WITH DUTIES RANGING FROM FINDING LOST DOGS TO FILLING OUT REPORTS ON THE OCCASIONAL CAR CRASH WITH LIBERATION SHE LOSES THAT 60AWEEK POSITION I REALLY DIDN'T EVER WANT TO DO IT ANYWAY SHE SAYS WITH A SHRUG NOW I GET TO COMPLAIN TO SOMEBODY ELSE JOBS OR NO JOBS YANKEE STOICISM SURVIVES IT MAKES NO DIFFERENCE TO ME SAYS AMASA WALLACE A RETIREE WHO WAS PAID BY PORTLAND TO WATCH OVER THE LONG ISLAND DUMP EACH SUMMER AND MAKE SURE THAT TRASH WAS SORTED INTO THE PROPER PILES HE IS STILL WAITING TO HEAR WHETHER THE ISLAND GOVERNMENT WILL WANT HIM TO STAY ON IN THE JOB I'VE BEEN GOING ON THE IDEA THAT IF THEY WANT ME THEY'LL HIRE ME IF THEY DON'T THEY WON'T IF ONLY PORTLAND WERE THAT EASYGOING LONG ISLANDERS SAY PORTLAND REFUSED TO CREDIT THEM FOR ANY OF THE TAXES COLLECTED IN THE SPRING THUS FORCING THE NEW TOWN TO BORROW MONEY AND DEPEND ON DONATIONS AND SALES OF 15 TOWN OF LONG ISLAND ESTABLISHED 1993 TSHIRTS TO GET BY FROM JULY 1 TO SEPT 1 WHEN THE ISLAND'S PROPERTY TAXES REDUCED BY ABOUT 9 ARE DUE WHEN THE ISLAND ALMOST TWO SQUARE MILES IN SIZE TRIED TO CONTRACT WITH A PRIVATE HELICOPTER SERVICE TO FLY EMERGENCY CASES TO PORTLAND'S CITY HOSPITAL PORTLAND INVOKING SAFETY REFUSED TO GRANT THE CHOPPER PERMISSION TO LAND NEARBY FOR NOW ISLANDERS WILL HAVE TO RELY ON PORTLAND'S FIREBOAT LAST WEEK THE CITY NIXED LONG ISLAND'S APPLICATION TO PAY LOWER MUNICIPAL RATES FOR BURNING TRASH IN PORTLAND SO IT WILL HAVE TO PAY THE HIGHER RATE PRIVATE BUSINESSES ARE CHARGED PORTLAND ALSO DECLINED TO TURN OVER 23000 IN FEDERAL COMMUNITYDEVELOPMENT FUNDS THAT IT HAD EARMARKED FOR A NEVERBUILT ISLAND PARKING LOT THE ISLAND WANTED THE MONEY TO PAY FOR ROAD WORK THEN THERE WAS THE LAWN MOWER SEIZURE THE CITY SENT A DELEGATION OF FIVE OFFICIALS TO LONG ISLAND'S TWOROOM SCHOOLHOUSE AND MADE OFF WITH AN OLD GAS MOWER IT WAS LAST SEEN BEING PUSHED DOWN THE DOCK TO THE FERRY SLIP A TORO NO NOT THAT EXPENSIVE SAYS MS WOOD THE FORMER MOWER OPERATOR IN ADDITION TO HER OTHER JOBS SO LONG ISLAND IS UP AGAINST IT AND STRUGGLING TO AMASS SOME CASH IT IS TRYING TO GET RESIDENTS TO PAY THEIR TAXES EARLY IT PLANS TO DARKEN 38 OF ITS 128 STREET LIGHTS REDUCE ITS TWOMAN ROAD CREW TO ONE PARTTIME WORKER AND CHARGE RESIDENTS WHO NEED THE FIREBOAT FOR EMERGENCIES 351 FOR TRIPS TO THE MAINLAND SO WHAT'S TO CELEBRATE SECESSIONIST LEADERS INSIST THAT SERVICES OVERALL WILL IMPROVE THE POLICE ARE A CASE IN POINT DURING SUMMERS THEY SAY PORTLAND ROTATED THE ISLAND'S SOLE FULLTIME POLICE OFFICER EVERY TWO WEEKS WITH REPLACEMENT OFFICERS TYPICALLY ARRIVING ON THE FERRY IN BERMUDA SHORTS AND WITH THEIR FAMILIES IN TOW THEY LOOKED LIKE PEOPLE ON VACATION SAYS NANCY JORDAN A BAREFOOT ISLAND ACTIVIST WHO IS TO HEAD THE ISLAND'S NEW SCHOOL BOARD NOW THERE WILL BE A FULLTIME OFFICER WHO WILL SPEND THE WHOLE SUMMER HERE AND WEAR A UNIFORM TOO LONG ISLANDERS FOR THE MOST PART SEEM TO BE READY FOR THE STRINGENCIES OF INDEPENDENCE THEY CERTAINLY ARE READY TO PARTY A DAY AND NIGHT OF FESTIVITIES TO MARK THE ISLAND'S EMANCIPATION INCLUDING THE UNVEILING OF A WHARFSIDE TOWN SIGN COMMEMORATIVE POSTMARKS BURYING A TIME CAPSULE AND THE INDEPENDENCE DAY BARBECUE VOLUNTEERS HAVE SPIFFED UP A DUSTY OLD NAVY BUILDING AS THE NEW TOWN HALL IT WILL BE OPEN EIGHT WHOLE HOURS A WEEK IT ALREADY IS ENTERTAINING APPLICATIONS FOR MAINE'S FALL MOOSE HUNT 9307010085 930701 INTERNATIONAL MAZDA PLANS TO SLASH COSTS TO BOOST PROFIT IN A FOURYEAR PLAN SPECIAL TO THE WALL STREET JOURNAL TOKYO MAZDA MOTOR CORP SAID IT PLANS TO SLASH COSTS TO GAIN 60 BILLION YEN 5644 MILLION OF ANNUAL PRETAX PROFIT WITHIN FOUR YEARS HOWEVER SALES ARE LIKELY TO BE SLUGGISH IN ADDITION THE YEN HAS STRENGTHENED AGAINST THE DOLLAR WHICH IS TRADING AT ABOUT 106 YEN MAKING JAPANESE PRODUCTS MORE EXPENSIVE OVERSEAS BECAUSE MANY ANALYSTS THINK THE YEN COULD STRENGTHEN FURTHER PERHAPS TO 100 YEN TO THE DOLLAR MAZDA SAID IT WILL CONCENTRATE MORE ON DOMESTIC SALES WHICH DON'T GYRATE WITH CURRENCY EXCHANGE RATES MEANWHILE THE JAPANESE CAR MAKER SAID IT WILL REDUCE COSTS IN ADMINISTRATION SALES AND PRODUCT DEVELOPMENT AND PRODUCTION FOR INSTANCE MAZDA SAID IT WOULD USE THE SAME TYPES OF PARTS FOR DIFFERENT MODELS TO SAVE MONEY IT ALSO HOPES TO IMPROVE PROFITABILITY PER PRODUCT MAZDA HOPES TO REDUCE THE NUMBER OF EMPLOYEES BY 1500 PEOPLE THROUGH ATTRITION OVER THE NEXT THREE YEARS FOR THE YEAR ENDING MARCH 31 1994 MAZDA FORECASTS SALES OF 207 TRILLION YEN AND EXPECTS TO SHOW A PRETAX LOSS OF 12 BILLION YEN UNDER THE NEW PLAN IT HAS SET ITS SALES TARGET AT 23 TRILLION YEN FOR THE YEAR ENDING MARCH 31 1998 UP 5 FROM 2191 TRILLION YEN IN THE PAST FISCAL YEAR WITH PRETAX PROFIT OF 60 BILLION YEN NEARLY 10 TIMES LAST YEAR'S 624 BILLION YEN MAZDA PROJECTS ITS DOMESTIC SALES IN THE YEAR ENDING IN 1998 AT 550000 UNITS UP 19 FROM 462000 UNITS IN THE PAST FISCAL YEAR EXPORTS HOWEVER WOULD BE FLAT AT 800000 UNITS 9307010084 930701 ECONOMY US WILL STRESS GLOBAL GROWTH AT G7 SUMMIT BENTSEN EXPECTS GERMANY TO CUT RATES FURTHER RUSSIA AID TO FALL SHORT BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TREASURY SECRETARY LLOYD BENTSEN SAID THE US WILL EMPHASIZE THE URGENCY OF REVIVING THE GLOBAL ECONOMY AT NEXT WEEK'S SUMMIT IN TOKYO AND PREDICTED THAT GERMANY WILL CUT INTEREST RATES AGAIN TO THAT END YOU'VE SEEN THE CONSENSUS ACROSS EUROPE THAT RATES SHOULD BE LOWERED FRANKLY I THINK THEY'LL BE LOWERED SOME MORE MR BENTSEN SAID IN AN INTERVIEW THE GERMAN BUNDESBANK'S POLICY MAKERS MEET TODAY BUT MR BENTSEN WOULDN'T SAY IF HE EXPECTS AN INTERESTRATE CUT THAT SOON ASKED IF THE US WILL PRESS THE JAPANESE AT THE SUMMIT TO DO MORE TO STIMULATE ITS ECONOMY THE SECRETARY REPLIED I'VE NEVER STOPPED ASKING RUSSIAN PRESIDENT BORIS YELTSIN WHO WILL MEET WITH THE G7 LEADERS NEXT WEEK WILL COME AWAY WITH FAR MORE THAN HIS PREDECESSOR MIKHAIL GORBACHEV GOT AT THE LONDON SUMMIT TWO YEARS AGO MR BENTSEN SAID FOR INSTANCE US OFFICIALS SAY THE G7 HAS AGREED TO OPEN AN OFFICE IN MOSCOWO COORDINATE AID AND YESTERDAY THE DIRECTORS OF THE INTERNATIONAL MONETARY FUND AS EXPECTED APPROVED A 15 BILLION LOAN FOR RUSSIA THE FIRST UNDER A NEW FUND CREATED AT THE URGING OF THE G7 TO ASSIST RUSSIA AND OTHER FORMERLY COMMUNIST COUNTRIES UNABLE TO MAKE AS MUCH PROGRESS AS THEY HAD HOPED IN PRESUMMIT TALKS AIMED AT OPENING THE JAPANESE MARKET TO IMPORTS BREAKING THE DEADLOCK IN THE WORLD TRADE TALKS AND GETTING OTHER G7 COUNTRIES TO COME UP WITH MONEY FOR RUSSIA US OFFICIALS ARE NOW TALKING ABOUT THE PRIMACY OF ECONOMICGROWTH ISSUES I THINK IT'S GOING TO BE PRODUCTIVE BECAUSE I THINK THE PRESIDENT WILL PUT HIS IMPRINT ON INTERNATIONAL ECONOMICS MR BENTSEN SAID IN THE INTERVIEW WITH THE WALL STREET JOURNAL THE JAPANESE DAILY NIHON KEIZAI SHIMBUN AND THE GERMAN NEWSPAPER HANDELSBLATT IN COMMENTS TO REPORTERS PRESIDENT CLINTON SAID GLOBAL GROWTH WILL BE HIGH ON HIS AGENDA AT THE TOKYO SUMMIT IT'S VERY HARD FOR THE UNITED STATES ALONE TO GROW JOBS WITHOUT HELP FROM OTHER NATIONS HE SAID I THINK THE JAPANESE OUGHT TO STIMULATE THEIR ECONOMY AND OPEN THEIR MARKETS I THINK THE GERMAN CENTRAL BANK SHOULD CONTINUE TO LOWER INTEREST RATES THERE SO THAT ALL OF US TOGETHER CAN EXPAND THIS ECONOMY A SENIOR ADMINISTRATION OFFICIAL SAID YESTERDAY THAT MR CLINTON WILL PRESS A GLOBALGROWTH STRATEGY FOCUSED ON WHAT EACH COUNTRY CAN DO TO IMPROVE ITS ECONOMIC PERFORMANCE AND TRADE BALANCE BUT A US PROPOSAL TO AGREE ON SPECIFIC GROWTH TARGETS HAS BEEN REJECTED BY THE OTHER COUNTRIES OUTLOOK ON TRADE ON OTHER TOPICS MR BENTSEN SAID HE IS OPTIMISTIC THAT THE US AND ITS TRADING PARTNERS WILL MAKE SOME HEADWAY THAT WILL BE HELPFUL IN LOWERING BARRIERS TO ONE ANOTHER'S MARKETS AND BRINGING THE URUGUAY ROUND OF WORLD TRADE TALKS TO A SUCCESSFUL CONCLUSION HE STOPPED SHORT OF PREDICTING THAT A MARKETACCESS COMPROMISE WILL BE REACHED IN TIME FOR THE SUMMIT THE US WAS UNSUCCESSFUL IN ITS ATTEMPTS TO NEGOTIATE A NEW FRAMEWORK FOR USJAPANESE TRADE BECAUSE OF THE COLLAPSE OF THE MIYAZAWA GOVERNMENT I UNDERSTAND THEY ARE GOING TO HAVE AN ELECTION HE JOKED I WOULD ASSUME THAT HAD SUBSTANTIAL INFLUENCE ON THE SITUATION THAT'S CERTAINLY NO FAULT OF THE PRESIDENT'S BUT ANOTHER TOP ADMINISTRATION OFFICIAL SAID YESTERDAY THAT THERE'S STILL A CHANCE OF A LASTMINUTE BREAKTHROUGH THAT COULD PRODUCE AN AGREEMENT BEFORE NEXT WEEK HE ABSOLUTELY STANDS BY RECENT STATEMENTS THAT THE US ISN'T SEEKING A FURTHER APPRECIATION OF THE YEN AGAINST THE DOLLAR THE RESIGNATION OF JACQUES ATTALI THE CONTROVERSIAL PRESIDENT OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT WILL HELP THE CLINTON ADMINISTRATION PERSUADE CONGRESS TO APPROVE FURTHER CONTRIBUTIONS TO THE BANK I MAY GET A LITTLE MONEY OUT OF THE CONGRESS NOW THAT WE'VE HAD A CHANGE IN LEADERSHIP HE SAID MR BENTSEN WOULDN'T SAY WHETHER HE FAVORS RENEWAL OF THE SOCALLED SUPER 301 LAW NOW LAPSED THAT REQUIRES THE US TRADE REPRESENTATIVE TO PREPARE A LIST OF COUNTRIES WITH TRADE BARRIERS THAT THE US SEEKS TO REDUCE HE DESCRIBED THE SUPER 301 REMEDY AS A RESIDUAL ACTION IN A BROADER US ATTEMPT TO OPEN WORLD MARKETS 9307010083 930701 BUSINESS BRIEF FINNAIR WON'T REPLACE MCDONNELL DOUGLAS JETS WITH BOEING 767S ST LOUIS MCDONNELL DOUGLAS CORP SAID FINNAIR HAS DECIDED TO KEEP ITS FLEET OF MCDONNELL DOUGLAS WIDEBODY JETS AND WILL STOP DISCUSSIONS ABOUT REPLACING THEM WITH BOEING 767S TALKS ABOUT A POSSIBLE FLEET REPLACEMENT BY THE FINNISH NATIONAL AIRLINE WERE ANNOUNCED IN APRIL AFTER SEATTLEBASED BOEING CO AND INTERNATIONAL LEASE FINANCE CORP A BEVERLY HILLS CALIF AIRCRAFT LEASING COMPANY JOINED FORCES IN AN ATTEMPT TO BUMP MCDONNELL DOUGLAS'S PLANES FROM THE FINNAIR FLEET INTERNATIONAL LEASE FINANCING IS A UNIT OF AMERICAN INTERNATIONAL GROUP INC THE NEW YORKBASED INSURANCE CONCERN MCDONNELL SAID FINNAIR'S FINANCIAL STUDIES SHOWED IT WOULD BE MORE ADVANTAGEOUS TO CONTINUE WITH THE PRESENT FLEET OF MCDONNELL DOUGLAS MD11 THREEENGINE TRANSPORTS THAN TO SWITCH TO BOEING'S TWINENGINE B767S FINNAIR'S BOARD ACTED TO ENDORSE A DECISION BY THE AIRLINE'S MANAGEMENT A FINNAIR SPOKESMAN COULDN'T BE REACHED FOR COMMENT A SPOKESMAN FOR BOEING'S COMMERCIAL AIRPLANE GROUP SAID THE COMPANY IS STILL GOING TO BE TALKING WITH FINNAIR TO FIND A WAY FOR THEM TO SEE THAT THE 767 IS THE BEST SOLUTION TO THEIR NEEDS OVER THE LONG TERM HE SAID THE DECISION BY FINNAIR'S BOARD WAS MOTIVATED BY INDUSTRY ECONOMIC CONDITIONS RATHER THAN ANYTHING WRONG WITH THE AIRPLANE OR QUESTIONS ABOUT WHETHER IT'S RIGHT FOR THEM IN THE LONG TERM 9307010081 930701 BUSINESS BRIEF HJ HEINZ CO PACT IS REACHED TO PURCHASE FOOD LINES FROM CLOROX HJ HEINZ CO IN A MOVE THAT COULD MAKE IT THE NATION'S LARGEST PROVIDER OF FROZEN APPETIZERS AGREED TO ACQUIRE TWO FOOD LINES FROM CLOROX CO OAKLAND CALIF HEINZ BASED IN PITTSBURGH EXPECTS THE DEAL TO CLOSE TOMORROW TERMS WEREN'T DISCLOSED BUT GOLDMAN SACHS ANALYST NOMI GHEZ ESTIMATES THE PURCHASE PRICE IS BETWEEN 70 MILLION AND 80 MILLION A HEINZ SPOKESWOMAN SAYS THE TWO LINES MOORE'S AND DOMANI HAVE COMBINED ANNUAL SALES OF ABOUT 100 MILLION HEINZ ESTIMATES THAT WITH THE ACQUISITION ITS OREIDA FOODS DIVISION WILL HAVE MORE THAN 20 OF THE FRAGMENTED 856 MILLION FROZENAPPETIZERS CATEGORY ACCORDING TO HEINZ AND CLOROX RESEARCH THE CATEGORY GREW 42 BETWEEN 1986 AND 1991 THE LATEST YEARS FOR WHICH NUMBERS ARE AVAILABLE MOORE'S MAIN PRODUCT IS FROZEN BREADED ONION RINGS SOLD MOSTLY TO RESTAURANTS THE BRAND ALSO SELLS BREADED CHEESES AND VEGETABLES DOMANI IS THE NO 2 FROZEN PASTA MAKER ACCORDING TO HEINZ MOORE'S HAS TWO PLANTS IN FORT ATKINSON WIS AND RICE LAKE WIS DOMANI HAS ONE PLANT IN BLOOMSBURG PA THE THREE PLANTS EMPLOY A TOTAL OF MORE THAN 600 WORKERS HEINZ SAYS IT HAS NO IMMEDIATE PLANS TO CONSOLIDATE THE PLANTS OR LAY OFF WORKERS 9307010080 930701 TECHNOLOGY INTEL CORP SAYS PLANS FOR ITS FLASH' CHIPS UNAFFECTED BY REVIEW SANTA CLARA CALIF INTEL CORP SAID ITS DEVELOPMENT OF COMPUTER CHIPS CALLED FLASH MEMORIES WON'T BE AFFECTED BY A FEDERAL COURT DECISION TO HAVE THE US PATENT OFFICE REVIEW A PATENT THAT HAD BEEN AWARDED TO INTEL LAST YEAR THE PATENT OFFICE GRANTED INTEL A PATENT THAT COVERS CERTAIN ASPECTS OF FLASH MEMORY TECHNOLOGY GIVING INTEL BROAD RIGHTS OVER THE TECHNOLOGY'S USE FLASH CHIPS WHICH CAN RETAIN STORED DATA EVEN AFTER THEIR POWER SUPPLY IS CUT ARE BEGINNING TO REPLACE OTHER MEMORY CHIPS AND DATASTORAGE DEVICES SUCH AS DISK DRIVES IN SOME COMPUTERS ROHM CO A JAPANESE CHIP MAKER APPEALED THE PATENT'S AWARD TO A FEDERAL CIRCUIT COURT IN WASHINGTON DC THIS WEEK THE COURT SENT THE CASE BACK TO THE PATENT OFFICE FOR REVIEW ROHM'S STOCK WAS SUSPENDED IN TOKYO STOCK EXCHANGE TRADING WEDNESDAY MORNING FOLLOWING A JAPANESE MEDIA REPORT THAT ROHM HAD SECURED A PATENT FOR ITS FLASH MEMORY TECHNOLOGY IN THE US ROHM OFFICIALS IN TOKYO REFERRED QUESTIONS TO EXEL MICROELECTRONICS A SAN JOSE CALIFBASED DIVISION OF ROHM'S US UNIT EXEL OFFICIALS DIDN'T RETURN PHONE CALLS AN INTEL SPOKESWOMAN SAID THE PATENT OFFICE REVIEW COULD TAKE ONE TO TWO YEARS BUT WE BELIEVE THEY WILL REACH THE SAME DECISION WE EXPECT THEM TO REINSTATE THE DISPUTED PATENT TO INTEL 9307010079 930701 BUSINESS BRIEF TRW INC ELECTRONICS PRODUCTS UNIT IS SOLD TO ETA TECHNOLOGIES TRW INC CLEVELAND SAID IT SOLD ELECTRONIC PRODUCTS INC COLORADO SPRINGS COLO TO CLOSELY HELD ETA TECHNOLOGIES CORP OF LOS ANGELES TERMS OF THE SALE WEREN'T DISCLOSED BUT ETA SAID THE ACQUIRED BUSINESS HAD SALES OF 25 MILLION LAST YEAR THE SALE IS ONE OF THE LAST ASSETS SOLD UNDER A RESTRUCTURING PLAN THAT TRW ANNOUNCED IN DECEMBER EPI MAKES CONTROLS AND SYSTEMS FOR SPACE AVIONICS AND COMMUNICATIONS PRODUCTS TRW PROVIDES PRODUCTS AND SERVICES TO THE AUTOMOTIVE AEROSPACE AND DEFENSE MARKETS ETA IS A TECHNOLOGY AND SYSTEMS DEVELOPMENT COMPANY WITH 17 OFFICES IN THE US AND EUROPE 9307010078 930701 PARENT OF DENNY'S RESTAURANTS NAACP AGREE ON PLAN TO BOOST MINORITIES' ROLE BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL FLAGSTAR COS REELING FROM CHARGES OF RACIAL DISCRIMINATION AT ITS DENNY'S RESTAURANTS HAS AGREED TO DOUBLE THE NUMBER OF DENNY'S FRANCHISES OWNED BY MINORITIES ADD HUNDREDS OF AFRICANAMERICAN MANAGERS AND SHARPLY INCREASE PURCHASING FROM MINORITY ENTERPRISES IN A PACT SCHEDULED TO BE ANNOUNCED TODAY BY FLAGSTAR AND THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE THE COMPANY VALUED AT JUST OVER 1 BILLION THE TOTAL SPENDING THAT DENNY'S AND ITS THREE OTHER RESTAURANT CHAINS WOULD EARMARK FOR MINORITY VENDORS AND HIRING OVER THE NEXT EIGHT YEARS OF THE 1487 DENNY'S OUTLETS OPERATED BY FLAGSTAR BASED IN SPARTANBURG SC ONLY 54 FRANCHISED RESTAURANTS ARE OWNED BY MEMBERS OF MINORITY GROUPS WITH ONLY ONE OWNER BEING AFRICANAMERICAN THE AGREEMENT THAT FLAGSTAR NEGOTIATED WITH THE NAACP CALLS FOR 107 DENNY'S OUTLETS TO BE MINORITYOWNED BY 1997 WHILE THE INTENT OF THE AGREEMENT IS TO INCREASE AFRICANAMERICAN OWNERSHIP THAT NUMERICAL GOAL IS NOT BROKEN DOWN BY RACE A MANAGEMENT EMPLOYMENT PROVISION OF THE PLAN CALLS FOR 325 AFRICANAMERICANS TO BE HIRED AS MANAGERS WHO ARE PAID 42000 A YEAR OVER THE NEXT EIGHT YEARS AMONG ALL FLAGSTAR OPERATIONS HOWEVER THE REMAINING THREE PROVISIONS OF THE AGREEMENT COVERING PURCHASING MARKETING AND ADVERTISING AND PROFESSIONAL SERVICES APPLY TO ALL RACIAL MINORITIES FLAGSTAR HAS PLEDGED FOR EXAMPLE TO SPEND 12 OF ITS 800 MILLION PURCHASING BUDGET WITH MINORITIES EACH YEAR THROUGH 1997 IT WILL ALSO SPEND 10 OF ITS 68 MILLION ANNUAL MARKETING AND ADVERTISING BUDGET AND 15 OF ITS 125 MILLION LEGAL ACCOUNTING AND CONSULTING BUDGET WITH MINORITIES THE 96 MILLION FLAGSTAR PLANS TO PROVIDE FOR MINORITY PURCHASING AGENTS EACH YEAR COMPARES WITH ABOUT 13 MILLION CURRENTLY THE COMPANY SAID ITS ONE AFRICANAMERICANCONTROLLED SUPPLIER NOW RECEIVES ONLY ABOUT 100000 A YEAR IT ADDED THE COMPANY SAYS IT HOPES THE FIRST FRANCHISE ASSIGNED UNDER THE PACT WILL BE FOR A FLAGSTAROWNED DENNY'S IN ANNAPOLIS MD WHERE THE ALLEGED DENIAL OF SERVICE TO SIX MEMBERS OF A UNIFORMED DIVISION OF THE SECRET SERVICE TRIGGERED ONE OF FIVE RACEDISCRIMINATION LAWSUITS AGAINST THE CHAIN THIS YEAR A FLAGSTAR SPOKESMAN SAID NEGOTIATIONS ARE UNDER WAY WITH A POTENTIAL AFRICANAMERICAN BUYER WHO WOULD RECEIVE SUCH FINANCIAL ASSISTANCE AS FORGIVENESS ON LEASE PAYMENTS OR DIRECT PURCHASE FINANCING FROM THE COMPANY THE AVERAGE DENNY'S RESTAURANT COSTS ABOUT 1 MILLION TO OPEN LEADING ANALYSTS GENERALLY TO VALUE AN OUTLET AT ABOUT THAT AMOUNT THE FLAGSTARNAACP PACT IS ONE OF TWO SOCALLED FAIR SHARE AGREEMENTS TO BE DISCUSSED AT SEPARATE NEWS CONFERENCES TODAY BY FLAGSTAR CHAIRMAN JERRY RICHARDSON AND BEN CHAVIS NAACP EXECUTIVE DIRECTOR AFTER DISCUSSING THE ACCORD IN BALTIMORE MESSRS RICHARDSON AND CHAVIS WILL FLY TO CHARLOTTE NC TO TALK ABOUT MR RICHARDSON'S PROPOSED NATIONAL FOOTBALL LEAGUE FRANCHISE THE CAROLINA PANTHERS RICHARDSON SPORTS HEADED BY MR RICHARDSON'S SON AGREED IN THE PACT TO ENDEAVOR TO ACHIEVE A LEVEL OF 15 TO 25 REPRESENTATION OF AFRICANAMERICANS IN ITS MANAGEMENT RANKS AND 20 IN NONMANAGEMENT JOB CATEGORIES IF IT IS AWARDED AN NFL FRANCHISE THE GROUP IS ONE OF FIVE IN THE RUNNING FOR TWO FRANCHISES TO BE AWARDED THIS FALL MR RICHARDSON WHO HAS WORKED AGGRESSIVELY TOWARD LANDING A FRANCHISE SINCE 1987 PEOPLE FAMILIAR WITH THE EFFORT SAY THE DENNY'S DISCRIMINATION CHARGES HAVE GREATLY DAMAGED MR RICHARDSON'S CHANCES AND THAT HE HAS COURTED CIVIL RIGHTS GROUPS IN AN ATTEMPT TO RESCUE THE NFL BID MR RICHARDSON DENIED ANY CONNECTION OBVIOUSLY THE FLAGSTAR AGREEMENT HAS ABSOLUTELY NOTHING TO DO WITH THE NFL EFFORT AT ALL HE SAID THE REV JESSE JACKSON AND THE NATIONAL RAINBOW COALITION HEADED BY MR JACKSON'S SON HAVE BEEN OUTSPOKEN CRITICS OF DENNY'S AND MR RICHARDSON IN A MAY 27 PRESS RELEASE LINKING THE DENNY'S RACEDISCRIMINATION PROBLEMS TO DISCRIMINATION IN TOP PROFESSIONAL SPORTS JOBS THE YOUNGER MR JACKSON ASKED ARE WE SEEING THE BEGINNING OF A RACIST SPORTS CONNECTION AND PATTERN HERE MR RICHARDSON CANCELED A MEETING WITH JESSE JACKSON SHORTLY AFTERWARD AND FLAGSTAR AND THE NAACP ENTERED THE FINAL STAGES OF THEIR TALKS REV JACKSON HAS MADE IT KNOWN TO US THROUGH THE PRESS THAT HE HAS SOME CONCERNS ABOUT ME PERSONALLY MR RICHARDSON SAID BUT I THINK THE KEY ISSUE IS THAT WE ARE CONFIDENT THAT THE AGREEMENT WE WILL ANNOUNCE TODAY WILL ADDRESS ALL OF HIS ISSUES AND I'M CONFIDENT HE'LL BE SATISFIED THE DENNY'S LAWSUITS FILED IN JURISDICTIONS ACROSS THE COUNTRY HAVE BEEN EXTREMELY EMBARRASSING TO FLAGSTAR WHOSE OTHER RESTAURANT CHAINS ARE QUINCY'S EL POLLO LOCO AND HARDEE'S IN A BRIEF FILED IN A SAN JOSE CALIF CASE BROUGHT BY 32 BLACK DENNY'S CUSTOMERS BLACKS IN NORTH CAROLINA VIRGINIA MARYLAND AND FLORIDA CLAIMED DISCRIMINATION IN SWORN AFFIDAVITS AND A JUSTICE DEPARTMENT INVESTIGATION SUBSTANTIATED CALIFORNIA CHARGES OF DISCRIMINATION AGAINST THE CHAIN JOHN P RELMAN THE LAWYER FOR THE SECRET SERVICE AGENTS INVOLVED IN THE ANNAPOLIS INCIDENT WAS SKEPTICAL ABOUT THE NEW AGREEMENT THEY CAN MAKE WHATEVER DEAL THEY WANT WITH THE NAACP BUT THE BOTTOM LINE IS THIS IS A FOXHOLE CONVERSION AND THEY'RE GOING TO HAVE TO REDRESS THE INJURY THAT THEY'VE DONE IN COURT HE SAID I THINK IT'S A GOOD START SAID DON BOHANA THE ONLY BLACK DENNY'S FRANCHISEE WHOSE RESTAURANT IS IN SOUTH CENTRAL LOS ANGELES BUT I'D ALSO LIKE TO SEE AFRICANAMERICANS ON THE BOARD OF DIRECTORS 9307010077 930701 LETTERS TO THE EDITOR HE WAS A LOT OF THINGS BUT HE WASN'T CRAZY PARIAH IN THE SOUTH WILLIAM T SHERMAN IS GETTING A MAKEOVER PAGE ONE JUNE 9 WAS A REFRESHING HISTORICAL REVISION FOR THE UNFAIRLY MALIGNED GEN SHERMAN BUT YOU IMPLICITLY DREW ATTENTION TO ANOTHER DISTORTION OF THE PAST AND PRESENT THE STIGMA OF MENTAL ILLNESS YOU CORRECTLY STATED THAT GEN SHERMAN WAS DESCRIBED BY SOME AS INSANE WHY HE IS KNOWN TO HAVE SUFFERED FROM SEVERE DEPRESSION THAT AT TIMES LED HIM TO CONSIDER SUICIDE WHILE DEPRESSED DURING 1862 HE COMMANDED UNION TROOPS FACING CONFEDERATE FORCES IN KENTUCKY LIKE ALL DEPRESSED PEOPLE HE GROSSLY UNDERESTIMATED HIS STRENGTH AND CAPABILITIES WHILE EXAGGERATING THE PROBLEMS POSED BY THE SMALL CONFEDERATE FORCES HE FACED HIS REPEATED PLEADINGS TO WASHINGTON FOR MORE TROOPS AND HIS FAILURE TO CHALLENGE AND DEFEAT HIS SMALLER CONFEDERATE OPPONENTS CAUSED HIM TO BE LABELED INSANE THIS STIGMA NEARLY ENDED HIS CAREER ONE MAN SAW THROUGH THE DISTORTING FILTER OF SHERMAN'S DEPRESSION TO SEE THE GIFTED GENERAL BEHIND IT THAT MAN WAS ULYSSES S GRANT THEY WERE LIFELONG FRIENDS GRANT'S LETTERS OF ENCOURAGEMENT AT THIS TIME SUSTAINED SHERMAN WHO WOULD LATER GAIN ACCLAIM FOR HIS DARING LEADERSHIP THAT REVERSED THE NEAR DEFEAT OF A DISCOURAGED GRANT AT SHILOH SHERMAN IN 1862 WAS DEPRESSED BUT CALLED INSANE LIKE CHURCHILL AND LINCOLN HE RECOVERED FROM TEMPORARILY DEBILITATING DEPRESSION TO LEAD SHERMAN DOES NOT DESERVE TO BE A STIGMATIZED MAN THE MENTALLY ILL DO NOT DESERVE THIS STIGMA EITHER 9307010076 930701 ECONOMY WHITE HOUSE STILL SUPPORTS LEVY ON ENERGY SOME DEMOCRATS WANT HIGHER INCOME TAXES INSTEAD TO CUT DEFICIT BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE REEMPHASIZED ITS CALL FOR AN ENERGY TAX EVEN AS A COALITION OF CONGRESSIONAL DEMOCRATS URGED THAT THE LEVY BE DUMPED FROM A DEFICITREDUCTION PLAN AND REPLACED WITH HIGHER INCOME TAXES PRESIDENT CLINTON BELIEVES THAT THE PACKAGE SHOULD CONTAIN AN ENERGY TAX WHITE HOUSE PRESS SECRETARY DEE DEE MYERS SAID YESTERDAY THE PRESIDENT HAS MADE HIS PRINCIPLES EXCEEDINGLY CLEAR HE BELIEVES THE FINAL PASSAGE THROUGH THE CONFERENCE SHOULD CONTAIN 500 BILLION IN DEFICIT REDUCTION A GOOD RATIO OF TAXES TO SPENDING CUTS AND AN ENERGY TAX SUCH PRONOUNCEMENTS ASSUME GREATER SIGNIFICANCE FOLLOWING THE SENATE'S CLOSE PASSAGE OF A DEFICITREDUCTION BILL BECAUSE CONGRESSIONAL DEMOCRATS ARE LOOKING TO MR CLINTON FOR SIGNALS ABOUT HOW TO RESOLVE CRITICAL DIFFERENCES BETWEEN THE HOUSE AND SENATE VERSIONS OF THE BILL CHIEF AMONG THOSE DIFFERENCES IS THE ENERGY TAX THE HOUSE RELUCTANTLY BACKED MR CLINTON'S PROPOSED BROADBASED ENERGY TAX WHILE THE SENATE REPLACED IT WITH A 43 CENTSAGALLON FUELS TAX INCREASE IN AN INTERVIEW YESTERDAY TREASURY SECRETARY LLOYD BENTSEN SAID HE EXPECTS CONGRESS ULTIMATELY WILL AGREE ON AN ENERGY TAX THAT IS SMALLER THAN THE HOUSE'S VERSION WHICH WOULD RAISE ABOUT 70 BILLION OVER FIVE YEARS AND LARGER THAN THE SENATE VERSION WHICH WOULD RAISE ABOUT 20 BILLION BUT HE WOULDN'T DISCUSS WHAT FORM HE EXPECTS THE TAX TO TAKE BOTH OPTIONS ARE HIGHLY CONTROVERSIAL AND A COALITION OF HOUSE LIBERALS AND CONSERVATIVES HAS EMERGED TO OPPOSE ANY ENERGY TAX THEY WOULD RAISE REVENUES INSTEAD BY INCREASING THE CORPORATE AND INDIVIDUAL TAX RATES A PERCENTAGE POINT HIGHER THAN MR CLINTON AND THE HOUSE AND SENATE BILLS PROVIDE TO 36 FOR CORPORATIONS AND TO AS HIGH AS 407 FOR HIGHINCOME INDIVIDUALS THE THRUST OF THIS IS NO TAX ON THE MIDDLE CLASS PERIOD SAID REP GLENN ENGLISH A CONSERVATIVE OKLAHOMAN WHO WAS ONE OF 38 HOUSE DEMOCRATS TO OPPOSE MR CLINTON'S DEFICITREDUCTION PLAN THIS UNITES THE PARTY IT TAKES DEMOCRATS OFF THE DEFENSIVE AND PUTS US ON THE OFFENSIVE MR ENGLISH SAID SUCH A CHANGE OPENS THE DOOR TO WINNING OVER A MAJORITY OF THE 38 DISSIDENTS A NUMBER OF WHOM WERE OILSTATE FOES OF THE CLINTON ENERGY TAX AT A CAUCUS OF HOUSE DEMOCRATS YESTERDAY CHAIRMAN DAN ROSTENKOWSKI D ILL RESTATED HIS COMMITMENT TO THE 35 CORPORATE RATE MR CLINTON ORIGINALLY PROPOSED 36 BUT THE PRESIDENT AND MR ROSTENKOWSKI AGREED TO THE 35 RATE IN A BID FOR CORPORATE SUPPORT FOR THEIR PACKAGE NOW MANY HOUSE DEMOCRATS SAY THAT CORPORATE SUPPORT WAS LITTLE IN EVIDENCE HOUSE MAJORITY LEADER RICHARD GEPHARDT D MO SOUNDED A CAUTIONARY NOTE AMID SOME OF THE DEMOCRATS' SUGGESTIONS THAT JUNKING THE ENERGY TAX FOR HIGHER INCOME TAXES WAS THE SOLUTION TO GETTING A COMPROMISE PLAN THAT CAN PASS BOTH CHAMBERS THERE ARE A LOT OF OTHER PROBLEMS HE SAID WE'VE GOT A LONG WAY TO GO MS MYERS MENTIONED SOME OF THOSE PROBLEM AREAS YESTERDAY SHE SAID THE ADMINISTRATION WOULD BE ACTIVE IN THE HOUSESENATE NEGOTIATIONS TO BEGIN LATER THIS MONTH PARTICULARLY TO KEEP TAX INCENTIVES FOR INVESTMENTS IN DEPRESSED AREAS CREDITS FOR POOR WORKERS AND SOME BREAKS FOR BUSINESS MANY OF THE PRESIDENT'S INVESTMENT PROVISIONS WERE DROPPED OR SCALED BACK IN THE SENATE VERSION THE PRESIDENT WANTS TO FIGHT TO SEE SOME OF IT PUT BACK IN THE FINAL VERSION MS MYERS SAID 9307010075 930701 ABREAST OF THE MARKET INDUSTRIALS EDGE DOWN 277 POINTS AS ECONOMIC WORRIES CONTINUE BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MORE WORRIES ABOUT THE ECONOMY GRIPPED INVESTORS AND LEFT STOCK PRICES LITTLE CHANGED THE DISAPPOINTING ECONOMIC NEWS THAT TUESDAY SENT STOCK PRICES LOWER PARALYZED INVESTORS YESTERDAY PRICES WERE LOCKED IN A NARROW RANGE ALL SESSION THE DOW JONES INDUSTRIAL AVERAGE EASED 277 TO 351608 BUT BROADER AVERAGES WERE MIXED AND ADVANCING BIG BOARD ISSUES OUTNUMBERED DECLINERS 1125 TO 830 THE ONLY SIGNIFICANT MOVEMENT IN PRICES CAME LATE IN THE DAY AND WAS LINKED BY OBSERVERS TO TRADING STRATEGIES TIED TO THE END OF THE SECOND QUARTER AND TO STOCK INDEX OPTIONS EXPIRATIONS BUT EVEN THAT ACTION WAS RELATIVELY SUBDUED THE CONVICTION LEVELS ARE STILL A LITTLE SHAKY AFTER THE RECENT MIXED NUMBERS ON THE ECONOMY SAID ERIC T MILLER MARKET STRATEGIST AT DONALDSON LUFKIN & JENRETTE STOCKS HAD RALLIED MONDAY AS THE BOND MARKET GAINED AND INVESTORS MUSTERED SOME RENEWED OPTIMISM ABOUT THE ECONOMY BUT WEAKNESS IN BONDS AND POOR READINGS ON HOME SALES CONSUMER CONFIDENCE AND THE GOVERNMENT'S LEADING INDICATORS SAPPED THAT ENTHUSIASM TUESDAY AFTER TUESDAY'S DISAPPOINTMENTS MANY PEOPLE HAVE PUT THEIR INVESTMENT DECISIONS ON HOLD UNTIL THEY SEE MORE DATA ON THE STRENGTH OF THE ECONOMIC RECOVERY SAID HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY OF PARTICULAR IMPORTANCE HE SAID ARE A REPORT ON BUSINESS ACTIVITY TODAY FROM THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT AND A READING ON EMPLOYMENT LEVELS TOMORROW FROM THE LABOR DEPARTMENT BOTH REPORTS COVER CONDITIONS IN JUNE A REGIONAL REPORT ON BUSINESS FROM THE PURCHASING MANAGEMENT ASSOCIATION OF CHICAGO YESTERDAY SHOWED SOME GAINS ITS INDEX ROSE TO 539 IN JUNE FROM 531 IN MAY BUT THE COMMERCE DEPARTMENT SAID NEW FACTORY ORDERS FELL 14 IN MAY MEANWHILE MR JOHNSON SAID INVESTORS ARE BECOMING CONCERNED THAT WEAKNESS IN BONDS OVER THE PAST TWO SESSIONS DESPITE THE DOWNBEAT ECONOMIC NUMBERS MEANS BONDS MAY BE NEAR THEIR HIGHS FOR NOW CONTINUING GAINS IN THE BOND MARKET HAVE BEEN AN IMPORTANT PROP FOR STOCKS THE STANDARD & POOR'S 500STOCK INDEX LOST 016 TO 45053 AND THE DOW JONES EQUITY MARKET INDEX EASED 005 TO 42784 BUT THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 004 TO 24910 VOLUME WAS 280880260 SHARES UP FROM TUESDAY'S TRADING OF 272987540 SHARES THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 072 TO 43424 THERE WERE 321 GAINERS AND 249 DECLINERS IN THE SECOND QUARTER THE DOW JONES INDUSTRIAL AVERAGE JUMPED NEARLY 81 POINTS OR 24 YEARTODATE THE AVERAGE IS UP ALMOST 215 OR 65 THE S&P 500 THOUGH LOST 114 OR 03 IN THE QUARTER IT IS UP 1482 OR 34 SO FAR THIS YEAR THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ROSE 26 DURING THE SECOND QUARTER AND IS UP 88 THIS YEAR IN YESTERDAY'S TRADING QUANTUM CHEMICAL SURGED 6 1/2 TO 19 AFTER IT AGREED TO BE ACQUIRED BY HANSON PLC IN A 720 MILLION TRANSACTION EACH SHARE OF THE NEW YORKBASED PETROCHEMICAL PRODUCER WILL BE SWAPPED FOR 1176 AMERICAN DEPOSITARY SHARES OF HANSON WHICH IS BASED IN LONDON HANSON WAS UNCHANGED AT 17 TELEFONOS DE MEXICO'S ADRS SLID 1 5/8 TO 46 3/4 ON NEWS THAT A FEDERAL JUDGE HAD ORDERED A DELAY IN CONGRESSIONAL ACTION ON THE NORTH AMERICAN FREE TRADE AGREEMENT THE CLINTON ADMINISTRATION WAS TOLD TO PREPARE A REPORT ON THE ENVIRONMENTAL IMPACT OF THE TREATY A PROCESS THAT COULD TAKE MONTHS AFTER THE MARKET CLOSED THE ADMINISTRATION SAID IT PLANS TO APPEAL SHARES OF CLOSEDEND MUTUAL FUNDS THAT INVEST IN MEXICAN SECURITIES ALSO EASED MEXICO FUND LOST 5/8 TO 22 MEXICO EQUITY & INCOME FUND DROPPED 5/8 TO 15 3/4 COMPUSA TUMBLED 4 1/4 TO 29 1/2 AFTER THE DALLAS COMPUTER RETAILER SAID FOURTHQUARTER EARNINGS WILL BE AT THE LOW END OF ANALYSTS' ESTIMATES ACCORDING TO ZACKS INVESTMENT RESEARCH THE COMPANY HAD BEEN EXPECTED TO POST A PROFIT OF 23 CENTS TO 28 CENTS A SHARE STUDENT LOAN MARKETING ASSOCIATION CLIMBED 2 1/2 TO 43 1/4 THE HOUSE OF REPRESENTATIVES BACKED A LIMITED VERSION OF A PLAN TO MOVE THE BUSINESS OF PROVIDING STUDENT LOANS DIRECTLY TO A GOVERNMENT ADMINISTRATION AND AWAY FROM BANKS AND ENTITIES SUCH AS SALLIE MAE LOCTITE CORP SHED 2 7/8 TO 39 1/4 THE HARTFORD CONN MAKER OF ADHESIVES AND SEALANTS SAID SECONDQUARTER EARNINGS WILL BE ABOUT 10 BELOW THE YEARAGO LEVEL IN PART LOCTITE BLAMED SOFTNESS IN EUROPEAN ECONOMIES THOMAS & BETTS CONTINUED TO SLIDE LOSING 3 TO 63 3/4 AFTER DECLINING 3 1/8 TUESDAY FOLLOWING A DISAPPOINTING EARNINGS PROJECTION YESTERDAY MORGAN STANLEY & CO LOWERED ITS INVESTMENT RATING ON SHARES OF THE BRIDGEWATER NJ ELECTRICAL PRODUCTS MAKER TO SELL FROM HOLD DRUG STOCKS WERE WEAK MERCK & CO FELL 1 1/4 TO 35 1/2 PFIZER DROPPED 2 1/4 TO 67 BRISTOLMYERS SQUIBB EASED 1/2 TO 57 3/4 AND JOHNSON & JOHNSON SLIPPED 1/2 TO 41 1/2 9307010074 930701 TRAVEL TAKEOFF IS BUMPY FOR STARTUP AIRLINES AS THEY TRY TO GRAB A PIECE OF THE SKY BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL A FLOCK OF SMALL UPSTART AIRLINES RECENTLY TOOK OFF INTO WHAT LOOKED LIKE A NEW ERA OF AIR SERVICE THEY FIGURED THEY COULD KEEP COSTS DOWN AND FARES LOW BY HIRING CASTOFF WORKERS FROM OTHER AIRLINES LEASING REPOSSESSED AIRCRAFT AND BUYING MOTHBALLED EQUIPMENT ON THE CHEAP BUT ALREADY ONE OF THE NEW NICHE CARRIERS HAS BEEN GROUNDED AND SOME OF THE OTHERS ARE STRUGGLING TO STAY ALOFT SKYBUS BEGAN LAST YEAR AS A DISCOUNT CARRIER SERVING SEVERAL FLORIDA CITIES AND NEWARK NJ AS A REGULARLY SCHEDULED CHARTER IT RENTED PLANES AND CREW AND CHARGED PASSENGERS EXTRA FOR MEAL SERVICE BEVERAGES AND CHECKIN BAGGAGE 5 A BAG BUT ITS ERRATIC SERVICE PLANES SOMETIMES DEPARTED BEFORE THE PRINTED SCHEDULE SAID THEY WOULD ALIENATED MANY TRAVELERS AND THE RISE OF OTHER NOFRILL CARRIERS IN THE SAME MARKETS SIPHONED OFF PASSENGERS SKYBUS INITIALLY LEASED FOUR MD80S FROM PRIVATE JET EXPEDITIONS INC IN ATLANTA BUT PRIVATE JET WITHDREW ITS AIRCRAFT SEVERAL MONTHS AGO ALLEGING SKYBUS OWED IT MORE THAN 600000 SKYBUS BASED IN DANIA FLA HAS DENIED THE ALLEGATION SKYBUS THEN RENTED FOUR PLANES FROM EXPRESS ONE INTERNATIONAL INC IN DALLAS BUT EXPRESS ONE TERMINATED ITS CONTRACT TUESDAY SAYING SKYBUS OWED IT 500000 IN A NEWS RELEASE YESTERDAY SKYBUS SAID IT COULDN'T PAY ITS BILLS BECAUSE ITS TRAVEL AGENCY HAS WITHHELD BETWEEN 1 MILLION AND 2 MILLION IN PAST SALES AND ITS INDEPENDENT CREDIT CARD PROCESSOR HAS WITHHELD RECEIVABLES SKYBUS SAID IT WOULD RECTIFY THESE PROBLEMS AND PLEDGED TO BE IN THE AIR AGAIN IN A VERY SHORT PERIOD OF TIME IN THE PAST YEAR AT LEAST A DOZEN NEW US PASSENGER AIRLINES HAVE BEGUN OPERATIONS AND 14 NEWCARRIER APPLICATIONS ARE BEFORE THE US DEPARTMENT OF TRANSPORTATION AT STAKE ARE THE PASSENGERS AND PROFITS THAT COULD MEAN THE DIFFERENCE BETWEEN SURVIVAL AND FAILURE FOR THE BIGGER MORE ESTABLISHED COMPETITORS IN THE 60 BILLION US AIRLINE INDUSTRY THE NEW AIRLINES FLY LESS THAN 2 OF THE DOMESTIC MARKET BUT SOME ANALYSTS FORECAST THAT THEIR SHARE COULD QUADRUPLE TO 8 BY THE END OF NEXT YEAR ACHIEVING SUCH HEIGHTS WON'T BE EASY THOUGH ALL SMALL CARRIERS SHARE SIMILAR PROBLEMS FOR ONE THING THE STARTUPS CAN BE PAINFULLY INCONSPICUOUS THEIR TINY TICKET COUNTERS INSIDE AIRPORTS ARE DIFFICULT TO FIND AND THEIR ADVERTISING MUSCLE IS PAPER THIN COMPARED WITH THE LIKES OF UNITED AMERICAN AND DELTA IN ADDITION TRAVEL AGENTS FAVOR THE BIGGEST AIRLINES WHICH PAY THE HIGHEST COMMISSIONS AND FREQUENTFLIER PROGRAMS AT THE LARGEST CARRIERS CREATE TREMENDOUS BRAND LOYALTY THE NEW AIRLINES MAY ALSO MAKE JUST AS MANY MISTAKES AS THEIR MONEYLOSING RIVALS WHAT WILL KILL THE LITTLE GUYS IS NOT THE BIG GUYS SQUASHING THEM BUT THE LITTLE GUYS KILLING THEMSELVES BY GOING INTO MARKETS THEY SHOULDN'T GO INTO OR OVEREXPANDING SAYS MICHAEL BOYD PRESIDENT OF AVIATION SYSTEMS RESEACH CORP A CONSULTING CONCERN IN GOLDEN COLO THE ASCENT OF SMALL CARRIERS ISN'T A NEW PHENOMENON IN THE EARLY 1980S NICHE AIRLINES SEEMED TO BE TAKING OFF IN THE WAKE OF FEDERAL DEREGULATION WHICH LOWERED GOVERNMENT BARRIERS TO THE MARKET MORE THAN 150 AIRLINES ULTIMATELY WERE CREATED INCLUDING PEOPLE EXPRESS WHICH OFFERED THE SAME KIND OF LOWFARE BAREBONE SERVICE NOW IN VOGUE BUT PEOPLE EXPRESS GREW TOO FAST AND WAS SWALLOWED BY ANOTHER CARRIER UNEXPECTED INNOVATIONS BY THE LARGEST AIRLINES SUCH AS FREQUENT FLIER PROGRAMS AND COMPUTER RESERVATION SYSTEMS HELPED TO DRIVE OUT MOST OF THE OTHERS THIS TIME AROUND THE NEW PLAYERS DO HAVE SOME ADVANTAGES FOR STARTERS THE MAJOR CARRIERS ARE MUCH WEAKER FINANCIALLY SO THEY CAN'T AFFORD WIDEPREAD FARE WARS TO UNDERMINE THE NEWCOMERS THE CLINTON ADMINISTRATION MAY ALSO BE MORE HELPFUL THAN PREVIOUS ADMINISTRATIONS IN PROTECTING SMALL CARRIERS IN MARCH THE DEPARTMENT OF TRANSPORTATION FORCED NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC TO WITHDRAW PLANS TO ENTER THREE OF TINY RENO AIR'S MARKETS AND UNDERCUT IT WITH DISCOUNT FARES KIWI INTERNATIONAL AIRWAYS A DISCOUNT CARRIER THAT BEGAN SERVICE LAST SEPTEMBER AND SERVES NEWARK NJ ORLANDO AND SEVERAL OTHER MARKETS REPORTED ITS FIRST MONTHLY PROFIT IN APRIL RENO AIR WHICH SERVES THE BOOMING NEVADA MARKET OF GAMBLERS THE AIRLINE GIVES AWAY CHOCOLATES THAT LOOK LIKE GAMBLING CHIPS IS ALSO MAKING MONEY BUT SOME NEW AIRLINES HAVE HAD THEIR WINGS CLIPPED EVEN BEFORE TAKEOFF THE DEPARTMENT OF TRANSPORTATION FOUND FAMILY AIRLINES A LAS VEGAS STARTUP THAT PROMISED CHEAP CROSSCOUNTRY FARES UNFIT TO FLY UNLESS ITS FOUNDER M BARRY MICHAELS RESIGNED THE DEPARTMENT SAID IT WAS CONCERNED ABOUT MR MICHAELS' FAILURE TO DISCLOSE A NUMBER OF LAWSUITS AND JUDGMENTS AGAINST HIM IN FAMILY'S APPLICATION FOR AUTHORITY TO FLY FRANK LORENZO'S PLANS TO START A NEW AIRLINE HAVE RUN INTO OPPOSITION OF A DIFFERENT SORT LABOR LEADERS ACCUSE THE FORMER HEAD OF TEXAS AIR CORP OF DESTROYING JOBS AND MENACING THE INDUSTRY AND A FEDERAL ADMINISTRATIVE JUDGE IN WASHINGTON IS CURRENTLY CHARGED WITH DETERMINING MR LORENZO'S FITNESS TO RUN A NEW AIRLINE ONCE ALOFT MOST OF THE NEW AIRLINES STILL LEAD A PRECARIOUS LIFE ULTRAIR A NEW LUXURY CARRIER IN HOUSTON CANCELED ITS FLIGHTS TO LOS ANGELES SOON AFTER IT BEGAN THE ROUTE IT SAID CONTINENTAL AIRLINES WHICH IS ALSO BASED IN HOUSTON LOWERED ITS HOUSTONLOS ANGELES FARES ON FLIGHTS THAT COMPETED WITH ULTRAIR ULTRAIR WHICH FLIES BETWEEN HOUSTON AND NEW YORK ALSO HAS ACCUSED EMPLOYEES AT CONTINENTAL OF COVERING ULTRAIR'S SIGNS IN TERMINAL WALKWAYS THE SABOTAGE STOPPED AFTER ULTRAIR'S ACCUSATIONS CONTINENTAL WON'T COMMENT ON ANY OF ULTRAIR'S CHARGES AIRLINE PASSENGERS HAVE MIXED FEELINGS ABOUT THE NEW CARRIERS SIPPING CHARDONNAY ON A FIRSTCLASS CONTINENTAL FLIGHT FRED PERLSTEIN SAYS HE WAS DISGUSTED WHEN HE RECENTLY FLEW KIWI FROM ORLANDO TO NEWARK THE PEOPLE ON THE PLANECUTOFFS SANDALS BACKPACKERS THAT TO ME IS A CATTLE TRAIN THE 71YEAROLD RESIDENT OF BOCA RATON FLA COMPLAINS BUT ASKED WHICH CARRIER HE WILL FLY ON HIS NEXT TRIP TO NEWARK MR PERLSTEIN SAYS HE'LL REJOIN THE HERD FOR THE 99 HE PAID RECENTLY FOR A ONEWAY FARE HE SAYS I'LL PUT UP WITH A LOT OF GARBAGE 9307010073 930701 ADVERTISING NETWORKS' PLAN FOR TV PROGRAM WARNINGS MAY BACKFIRE BY KEVIN GOLDMAN IN TRYING TO MOLLIFY WASHINGTON AND COUNTER CRITICISM OF TELEVISION'S PREOCCUPATION WITH GUNPLAY AND OTHER VIOLENCE THE NETWORKS MAY HAVE ONLY SHOT THEMSELVES IN THE FOOT THE FOUR MAJOR BROADCAST NETWORKS' NEW PACT TO STEP UP PROGRAM WARNINGS ON VIOLENT CONTENT MAY TEMPORARILY STAVE OFF GOVERNMENT INTERVENTION BUT IT ALSO THREATENS TO ENCOURAGE ADVERTISERS TO PULL OUT OF RISKY PROGRAMMING AND IT HASN'T SILENCED THE CRITICS WHO PRODDED THEM INTO THE NEW APPROACH CBS ABC NBC AND NEWS CORP'S FOX JOINED CONGRESSIONAL CRITICS YESTERDAY IN ANNOUNCING THE NEW WARNINGS WHICH WILL SIGNAL A PARTICULARLY VIOLENT MINISERIES OR MADEFORTELEVISION MOVIE RIDDLED WITH GUNFIRE AND BODIES BY ISSUING A SIMPLE ALERT DUE TO SOME VIOLENT CONTENT PARENTAL DISCRETION ADVISED BY DOING THAT THE NETWORKS HAVE HANDED SKITTISH ADVERTISERS A READYMADE EXCUSE TO FORGO BUYING NETWORK TIME SOME INDUSTRY EXECUTIVES MAINTAIN IT WOULD MAKE IT TOUGHER FOR SOME SPONSORS TO STICK WITH A SHOW THAT HAS BEEN LABELED BY ITS OWN NETWORK AS VIOLENT EVEN IF THE ADVERTISER WERE OTHERWISE WILLING AND RATHER THAN HELP PARENTS KEEP THEIR KIDS AWAY FROM VIOLENT CONTENT SUCH WARNINGS MIGHT UNINTENTIONALLY ENCOURAGE KIDS TO BE SURE TO TUNE IN MAKE NO MISTAKE ABOUT IT THIS IS GOING TO COST US MONEY SAYS WARREN LITTLEFIELD PRESIDENT OF NBC ENTERTAINMENT A UNIT OF GENERAL ELECTRIC THERE IS A SOFT ADVERTISING MARKET AND ANYONE LOOKING FOR AN EXCUSE TO GET OUT OF A MOVIE OR SPECIAL HAS JUST BEEN HANDED THAT EXCUSE BY THE NETWORKS THERE IS GOING TO BE AN ADVERSE FINANCIAL IMPACT FROM ADVERTISERS TERRY RAKOLTA FOUNDER OF AMERICANS FOR RESPONSIBLE TELEVISION VOWS TO MAKE SURE THAT MR LITTLEFIELD IS PROPHETIC WE WILL GO AFTER ANY ADVERTISER APPEARING IN A SHOW THAT HAS A VIOLENCE DISCLAIMER SHE DECLARES AND TARGET THAT ADVERTISER WITH A CONSUMER BOYCOTT SUCH BOYCOTTS HAVE FAILED IN THE PAST AND MS RAKOLTA REFUSES TO DIFFERENTIATE BETWEEN GRATUITOUS VIOLENCE AND WELLMADE PROGRAMS WHOSE VIOLENT SCENES MAY BE IMPORTANT TO PLOT OR MESSAGE IN FACT SHE SAYS THE NEW DISCLAIMER WILL MAKE IT EASIER TO TARGET SPONSORS ADVERTISERS WILL NO LONGER BE ABLE TO CLAIM IGNORANCE ON WHAT KIND OF SHOWS THEY ARE BUYING MS RAKOLTA ADDS THAT EVEN THE DISCLAIMER PACT AMOUNTS TO TOO LITTLE TOO LATE IT GIVES CHILDREN A ROAD MAP TO THE VIOLENT MATERIAL SHE COMPLAINS THE NETWORKS ARE PLACING ALL RESPONSIBILITY BACK IN THE PARENTS' HANDS AND WHAT'S WRONG WITH THAT PARENTS CAN'T BE AROUND ALL THE TIME TO MONITOR WHAT THE KIDS ARE WATCHING SHE SAYS BUT IT APPEARS THAT THE CALL TO HALT VIOLENCE ON PRIMETIME TELEVISION COMES MOSTLY FROM POLITICIANS AND PRESSURE GROUPS SUCH AS MS RAKOLTA'S RATHER THAN FROM A MASSIVE GRASSROOTS OUTCRY I HAVEN'T PICKED UP A MASS PUBLIC MOVEMENT SAYS BILL BARRETT EXECUTIVE VICE PRESIDENT OF SFM MEDIA CORP A MEDIA BUYING SERVICE INSTEAD MANY VIEWERS SIMPLY VOICE THEIR DISPLEASURE BY TURNING THE DIAL OR SHUTTING THE TELEVISION SET OFF ENTIRELY FOR EXAMPLE ABC'S VIOLENT MINISERIES MURDER IN THE HEARTLAND WHICH RAN IN SPRING BASED ON A KILLING SPREE IN THE 1950S BY A YOUNG COUPLE DREW POOR RATINGS AND ACCORDING TO A NETWORK OFFICIAL COST CAPITAL CITIES/ABC ABOUT 2 MILLION IN LOST AD REVENUE BECAUSE OF SKITTISH SPONSORS PRIME TIME HAS BEEN A SOMEWHAT GENTLER PLACE THIS PAST TV SEASON AND PROMISES TO BE EVEN MUSHIER COME SEPTEMBER WITH A GAGGLE OF FAMILYORIENTED SITUATION COMEDIES BUT IT WASN'T WITHOUT ITS SHARE OF SHOCKING VIOLENCE IN ABC'S RECENT MINISERIES WILD PALMS ANGIE DICKINSON GOUGED OUT A MAN'S EYES MURDER IN THE HEARTLAND NOT ONLY SHOWED SHOOTINGS BUT VIEWERS SAW THE KILLER STRAPPED INTO THE ELECTRIC CHAIR AND EXECUTED NBC'S MINISERIES IN THE LINE OF DUTY AMBUSH IN WACO HAD SUSTAINED VIOLENCE WHEN IT SHOWED THE RAID BY FEDERAL AGENTS ON A RELIGIOUS CULT'S HEADQUARTERS IN THE TEXAS TOWN NETWORK TELEVISION IS IN A TOUGH BIND AS IT CONTINUES TO SUFFER AUDIENCE EROSION TO CABLE AND OTHER RIVALS PAY CABLE OF COURSE HAS NUDITY AND VIOLENCE ON SOME CABLE SYSTEMS RIGHT NEXT TO MORE RESTRAINED BROADCAST COMPETITION THAT IS ONE REASON VETERAN PRODUCER STEVEN BOCHCO HAS SAID HE WANTS TO PRODUCE AN RRATED SERIES FOR NETWORK TELEVISION ALTHOUGH HE DIDN'T GET TOTAL FREEDOM FROM ABC MR BOCHCO'S NEW SERIES NYPD BLUE PROMISES TO PUSH THE LIMITS ON SEX AND VIOLENCE ON BROADCAST TELEVISION MS RAKOLTA SAYS THAT SPONSORS OF THAT SHOW ARE DESTINED FOR A CONSUMER BOYCOTT ALTHOUGH SHE ADMITS SHE HASN'T EVEN SEEN IT YET NOT ALL VIOLENCE ON TELEVISION OF COURSE IS GRATUITOUS MR BOCHCO FOR INSTANCE PUSHED THE ENVELOPE ON VIOLENCE IN A 1980S SERIES HILL STREET BLUES THAT WAS GERMANE TO ITS RIVETING PLOTS ULTIMATELY THE NETWORKS MAY DO WORSE IF THEY SIMPLY CRANK OUT MEALYMOUTHED PROGRAMMING FARE INDEED IN A JOINT STATEMENT YESTERDAY THE FOUR NETWORKS SAID IT IS RELEVANT AND IMPORTANT TO UNDERSTAND THAT WE CANNOT ALLOW BROADCAST TELEVISION TO BECOME BARREN OF DRAMATIC EXCITEMENT WE CANNOT PARTICIPATE IN A PROCESS THAT WHILE WELLINTENDED CONDEMNS ADVERTISERSUPPORTED TELEVISION TO SUCH BLAND FARE THAT IT WOULD FORSAKE A HIGHER MORE SOPHISTICATED LEVEL OF DRAMATIC CONFLICT AND REALISTIC PORTRAYAL OF THE FULL RANGE OF THE HUMAN CONDITION TRANSLATION INSTEAD OF CUTTING OUT VIOLENCE ALTOGETHER THE NETWORKS WILL SIMPLY WARN VIEWERS ABOUT IT THAT PRACTICE WILL FORCE ADVERTISERS TO PROCEED MORE CAUTIOUSLY IN WHERE THEY PLACE ADS SAYS STEVE STERNBERG SENIOR VICE PRESIDENT AT AD AGENCY BOZELL'S MEDIA BUYING DIVISION A LOT OF ADVERTISERS ARE CONCERNED ABOUT VIOLENCE AND POTENTIAL BACKLASH FURTHER THE DISCLAIMER WON'T HAVE WHAT MR BARRETT OF SFM MEDIA DESCRIBES AS REVERSE MAGNETISM FOR SPONSORS WHO MAY WANT TO CASH IN ON WHAT COULD BE A HIGHLY RATED IF VIOLENT SHOW THIS WON'T ATTRACT THRILL SEEKERS OF CONTROVERSY HE SAYS TELEVISION ADVERTISING IS NOW A BUYER'S MARKET AND SPONSORS AREN'T CLAMORING TO BE ON CONTROVERSIAL SHOWS JUST FOR THE CHANCE TO BE SEEN BY MILLIONS OF VIEWERS HE SAYS THE NETWORKS INDEED MAY BE KILLING OFF VIOLENCE CBS RECENTLY ASKED PRODUCERS OF THE CHUCK NORRIS SERIES WALKER TEXAS RANGERS TO DEEMPHASIZE THE VIOLENCE SOMETHING THE PRODUCERS AGREED WITH BUT VIOLENCE ON TELEVISION SEEMS TO BE SURE TO STAY PUT AS DOES VIOLENCE IN REAL LIFE SCHEDULED FOR THIS FALL THE CBS MINISERIES THE MENENDEZ MURDERS THE PLOT OF THE REALLIFE MOVIE TWO AMBITIOUS BROTHERS ALLEGEDLY SHOTGUN THEIR PARENTS TO DEATH YOUNG & RUBICAM NEW YORK RAIDED THE CLOSED CREATIVE RANKS OF LEO BURNETT CO CHICAGO TAKING ONE OF BURNETT'S TOP CREATIVE GUNS AND PUTTING HIM IN CHARGE OF ALL OF ITS WORLDWIDE CREATIVE OUTPUT TED BELL WHO HAD BEEN CREATIVE DIRECTOR AND PRESIDENT AT LEO BURNETT'S US DIVISION WAS NAMED VICE CHAIRMAN AND WORLDWIDE CREATIVE DIRECTOR AT Y&R IN THE NEW POSITION MR BELL AGE 46 ASSUMES MANY CREATIVE DUTIES PREVIOUSLY HANDLED BY JOSEPH DE DEO THE AGENCY SAID MR DE DEO AGE 55 RETAINS THE TITLE OF VICE CHAIRMAN BUT DROPS THE TITLE OF CHIEF CREATIVE OFFICER THE RAID IS A COUP FOR Y&R MR BELL IS CONSIDERED ONE OF THE INDUSTRY'S BIG CREATIVE AND MANAGERIAL TALENTS DURING AN 11YEAR CAREER AT BURNETT HE OVERSAW CREATIVE WORK FOR SUCH BIG CLIENTS AS PHILIP MORRIS'S MILLER BREWING PHILIP MORRIS'S TOBACCO BRANDS AND FRUIT OF THE LOOM APPAREL JAMES G OATES CHAIRMAN AND REGIONAL MANAGING DIRECTOR OF BURNETT'S US DIVISION SAID THE AGENCY HADN'T DECIDED WHETHER OR WHEN TO REPLACE HIM Y&R OFFICIALS SAID THEY HAVE BEEN COURTING MR BELL FOR SEVERAL YEARS HE WILL REPORT TO ALEX KROLL Y&R CHAIRMAN AND CHIEF EXECUTIVE AGE 55 AND PETER GEORGESCU AGE 54 AND PRESIDENT THE WORLDWIDE CREATIVE DIRECTOR JOB WAS LAST HELD BY MR KROLL IN THE 1970S AND EARLY 1980S AND HAS BEEN VACANT SINCE 1982 AT Y&R MR BELL WILL SPEND ROUGHLY A YEAR IN THE AGENCY'S LONDON OFFICE BEFORE MOVING TO NEW YORK HELAYNE SPIVAK REMAINS EXECUTIVE VICE PRESIDENT AND CREATIVE DIRECTOR OF THE AGENCY'S NEW YORK OPERATIONS THE APPOINTMENT TAKES EFFECT AUG 15 ONE WEEK AFTER OMNICOM GROUP'S DDB NEEDHAM RESIGNED FROM THE ESTIMATED 17 MILLION BRISTOLMYERS SQUIBB BUSINESS THE BIG NEW YORK COMPANY ASSIGNED OUT THE OLD NEEDHAM BRANDS TO SEVERAL OF THE OTHER SHOPS ON ITS ROSTER WPP GROUP'S J WALTER THOMPSON WON THE BIG EXCEDRIN PM ACCOUNT WITH ESTIMATED 1992 BILLINGS OF 13 MILLION ACCORDING TO LEADING NATIONAL ADVERTISERS BOZELL PICKED UP THE MAIN EXCEDRIN BRAND WHICH BILLED ABOUT 4 MILLION LAST YEAR BUT IS EXPECTED TO RECEIVE MORE SPENDING SUPPORT WITH A NEW CAMPAIGN AND INTERPUBLIC GROUP'S LAURENCE CHARLES FREE & LAWSON WON THE SEA BREEZE ACCOUNT THERAPEUTIC MINERAL ICE WASN'T ASSIGNED FOX INC WILL LAUNCH A 24HOUR CABLE NETWORK THROUGHOUT LATIN AMERICA ON AUG 14 THE GENERALENTERTAINMENT CHANNEL WILL OFFER A VARIETY OF PROGRAMMING IN SPANISH PORTUGUESE AND ENGLISH REVENUE INITIALLY WILL COME FROM SUBSCRIBER FEES AND ADVERTISING THE NEWS CORP UNIT ALREADY REACHED AGREEMENTS WITH AFFILIATES IN MEXICO BRAZIL ARGENTINA EL SALVADOR AND ELSEWHERE WHICH WILL ARRANGE FOR OTHER CABLE SYSTEMS IN THEIR COUNTRIES TO CARRY THE FOX CHANNEL 9307010072 930701 FOREIGN EXCHANGE DOLLAR GETS A LIFT FROM CLINTON'S CALL FOR GERMANY TO REDUCE INTEREST RATES BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR LEAPT HIGHER WEDNESDAY PARTICULARLY AGAINST EUROPEAN CURRENCIES PROPELLED BY PRESIDENT CLINTON'S CALL FOR THE DEUTSCHE BUNDESBANK TO LOWER GERMAN INTEREST RATES THE REMARKS HAD EXTRA IMPACT BECAUSE THE FOREIGN EXCHANGE MARKET IS BULLISH ON THE US CURRENCY AND WAS EXPERIENCING ENDOFTHEMONTH THINNESS TRADERS SAID LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17035 MARKS UP FROM 16885 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 107 YEN UP FROM 10650 YEN STERLING WAS TRADING AT 14920 DOWN FROM 15125 ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10785 YEN AND AT 17072 MARKS TRADERS SAID THE MARKET IS DIVIDED ABOUT THE LIKELIHOOD OF A CUT IN GERMAN INTEREST RATES WHEN THE BUNDESBANK'S POLICYSETTING CENTRAL BANK COUNCIL MEETS TODAY THE PROXIMITY OF CLINTON'S COMMENTS TO THAT GATHERING WAS ALSO A FACTOR IN INFLUENCING THE MARKET THEY SAID AT A WHITE HOUSE PHOTO SESSION WEDNESDAY MR CLINTON SAID THE GERMAN CENTRAL BANK SHOULD CONTINUE TO LOWER INTEREST RATES IN ORDER TO HELP STIMULATE ECONOMIC GROWTH BOTH IN GERMANY AND ELSEWHERE THE PRESIDENT'S REMARKS WERE BENIGN SAID JOHN BEERLING CHIEF DEALER AT NORWEST CORP IN MINNEAPOLIS BUT THEY FOCUSED THE MARKET IN THE DIRECTION IT WANTS TO BE FOCUSED ON GERMANY'S ECONOMIC PROBLEMS LOWER INTEREST RATES WHICH IN THEORY WOULD HELP REVIVE THE DEPRESSED GERMAN ECONOMY ALSO WOULD TEND TO DIMINISH THE APPEAL OF DEPOSITS DENOMINATED IN MARKS THE DOLLAR RALLIED TWO PFENNIGS IN THE TWO HOURS AFTER MR CLINTON'S COMMENTS THIS MARKET WAS JUST LOOKING FOR AN EXCUSE TO BUY DOLLARS MR BEERLING SAID TECHNICAL FACTORS ALSO CONTRIBUTED TO THE RALLY SAID LIZBETH GOLDBERG ASSISTANT VICE PRESIDENT AT BAYERISCHE HYPOTHEKEN UND WECHSEL BANK AG THE DOLLAR HAD MET GOOD TECHNICAL SUPPORT AROUND 16850 MARKS JUST BEFORE MR CLINTON'S COMMENTS AND THAT LED SHORTPOSITION HOLDERS TO BUY BACK DOLLARS SHE SAID ALTHOUGH THE DOLLAR FINISHED ONLY MODESTLY HIGHER AGAINST THE YEN ON THE DAY IT RALLIED MORE THAN 15 YEN IN THE AFTERMATH OF MR CLINTON'S COMMENTS EARLIER IN THE DAY SPECULATIVE PLAYERS HAD PUSHED THE DOLLAR LOWER AGAINST THE JAPANESE CURRENCY HOPING TO EXPLOIT THE MARKET'S LATEMONTH THINNESS SAID NORI KATO VICE PRESIDENT AT INDUSTRIAL BANK OF JAPAN LTD BUT WHEN THE DOLLAR BEGAN TO SURGE UP ON THE MARK THE YEN GOT CAUGHT UP IN THE RALLY HE SAID LOOKING AHEAD PLAYERS SAID THE MARKET IS DIVIDED BOTH ABOUT WHAT ACTIONS IF ANY THE BUNDESBANK WILL TAKE AT ITS MEETING AND WHAT IMPACT ITS DECISIONS WILL HAVE ON THE MARKET MR KATO SAID AN EASING OF GERMAN RATE POLICY WOULD PROMPT A DOLLAR RISE TO TEST RESISTANCE AROUND 17200 MARKS IF WE BREAK THROUGH THERE WE'RE HEADED FOR A LONG UPTREND HE SAID SOME DEALERS SAID THE DOLLAR MAY FALL BACK ON PROFITTAKING IF THE BUNDESBANK DOES CUT RATES TODAY LOWER GERMAN RATES ALREADY HAVE BEEN FACTORED INTO THE MARKET MR BEERLING SAID 9307010071 930701 MUNICIPAL BOND ISSUANCE LEAPS DESPITE INVESTIGATIONS BY CONSTANCE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE PAST YEAR'S FRENETIC PACE OF CORPORATE BORROWING SLOWED A BIT IN THE SECOND QUARTER BUT CITIES AND STATES ACCELERATED THEIR SALES OF NEW TAXEXEMPT MUNICIPAL BONDS VARIOUS INVESTIGATIONS OF HOW MUNICIPAL BONDS ARE SOLD HAVEN'T PUT A DAMPER ON WALL STREET'S ABILITY TO SELL NEW TAXEXEMPTS THE BULK OF WHICH HAVE BEEN ISSUED BY MUNICIPALITIES TO REPLACE OLDER HIGHERYIELDING DEBT FOR THE FIRST SIX MONTHS OF 1993 MUNICIPAL BOND ISSUANCE TOTALED 1437 BILLION A STAGGERING 28 JUMP FROM THE SAME PERIOD A YEAR AGO ACCORDING TO A REPORT COMPILED JOINTLY BY SECURITIES DATA WHICH TRACKS STOCK AND BOND UNDERWRITINGS AND THE BOND BUYER A TRADE PUBLICATION THAT WAS THE HEAVIEST VOLUME OF NEW ISSUANCE SINCE THE SECOND HALF OF 1985 WHEN MUNICIPAL ISSUERS CRAMMED THROUGH HUGE AMOUNTS OF NEW BONDS TO BEAT THE 1986 TAX REFORM ACT THE SECONDQUARTER MUNI UNDERWRITING VOLUME TOTALED 77 BILLION UP FROM 667 BILLION IN THE FIRST QUARTER IN THE PAST FEW MONTHS FEDERAL AND STATE OFFICIALS HAVE LAUNCHED A NUMBER OF HIGHLY PUBLICIZED INVESTIGATIONS INTO THE METHODS USED BY POLITICIANS TO SELECT MUNICIPAL BOND UNDERWRITERS SEVERAL CITIES AND STATES ARE CONSIDERING REFORMS NEVERTHELESS BUSINESS HAS CONTINUED TO BE VERY STRONG FOR US SAID EDWARD SHERIDAN HEAD OF MERRILL LYNCH'S MUNICIPAL MARKETS GROUP IT'S BUSINESS AS USUAL INDEED MERRILL AGAIN RANKED AS TOP UNDERWRITER IN THE MUNICIPAL BOND MARKET ACTING AS SENIOR MANAGER FOR 185 BILLION OF THE FIRSTHALF TOTAL MERRILL RETAINED ITS FIRSTPLACE POSITION DESPITE NEWS IN LATE APRIL OF A FEDERAL INVESTIGATION OF A 29 BILLION BOND ISSUE SOLD BY THE NEW JERSEY TURNPIKE AUTHORITY IN 1991 AND 1992 OFFICIALS ARE INVESTIGATING AMONG OTHER THINGS WHETHER MERRILL AND OTHER SECURITIES FIRMS MAY HAVE PERFORMED FINANCIAL FAVORS FOR STATE POLITICIANS TO WIN TURNPIKE UNDERWRITING BUSINESS ALTHOUGH SEVERAL TOP MERRILL LYNCH UNDERWRITING EXECUTIVES WERE PUT ON LEAVE AFTER NEWS OF THE INQUIRY BROKE THE FIRM LEADMANAGED MORE THAN 10 BILLION OF LONGTERM MUNICIPALS BETWEEN APRIL AND JUNE IN MOST OTHER SECTORS OF THE BOND MARKET HOWEVER ISSUANCE SLIPPED IN THE SECOND QUARTER EVEN THOUGH TOTALS FOR THE FIRST HALF OF 1993 ARE FAR AHEAD OF LAST YEAR'S FIRST HALF WE JUST COULDN'T SUSTAIN THE ISSUANCE PACE OF THE FIRST QUARTER SAYS THOMAS PURA A PARTNER AT GOLDMAN SACHS & CO THE SECOND LARGEST UNDERWRITER OF DEBT AFTER MERRILL LYNCH MR PURA EXPLAINS THAT THE PACE OF NEW BOND OFFERINGS IN THE FIRST QUARTER ESPECIALLY CORPORATE BONDS WAS UNUSUALLY HEAVY BECAUSE OF PERCEPTIONS AMONG CORPORATE TREASURERS THAT THE STEEP DECLINE IN INTEREST RATES DURING THAT PERIOD PROVIDED A ONETIME OPPORTUNITY TO SELL BONDS CHEAPLY MANY COMPANIES RUSHED TO SELL BONDS FOR FEAR THAT INTEREST RATES WOULD RISE AS THE ECONOMY PICKED UP MOMENTUM LONGTERM INTEREST RATES DID SPIKE UP TEMPORARILY BUT HAVE DRIFTED LOWER AGAIN IN RECENT WEEKS NOW THAT INTEREST RATES APPEAR TO BE HOVERING AT THE LOWER LEVELS AND ECONOMIC GROWTH REMAINS ANEMIC CORPORATE ISSUERS ARE TAKING A SLIGHTLY MORE RELAXED APPROACH TO TAPPING THE MARKET WE STILL WILL HAVE GREAT CORPORATE BOND ISSUANCE BUT WE MAY NOT SEE THE VOLUME OF ISSUANCE THAT WE HAD IN THE FIRST QUARTER SAID MR PURA BUT EVEN IF DEBT ISSUANCE REMAINS CONSTANT FOR THE REMAINDER OF THE YEAR 1993 LEVELS SHOULD BE A RECORD BECAUSE OF THE STRONG FIRST QUARTER THE VOLUME OF ALL US TAXABLE DEBT ISSUED IN THE SECOND QUARTER TOTALED 2251 BILLION ACCORDING TO SECURITIES DATA A 73 DECLINE FROM 2429 BILLION IN THE FIRST QUARTER HOWEVER THE TOTALS FOR THE FULL SIX MONTHS SHOWED A 21 INCREASE TO 468 BILLION COMPARED WITH 3868 BILLION DURING THE FIRST SIX MONTHS OF 1992 THE QUARTERLY DECLINE WAS ACROSS ALL SECTORS OF THE TAXABLE US MARKETS INCLUDING CORPORATE BONDS MORTGAGEBACKED SECURITIES AND JUNK BONDS WHILE UNDERWRITERS ON WALL STREET EXPECT TO PRICE SEVERAL BILLION DOLLARS' WORTH OF NEW BOND OFFERINGS EACH WEEK INVESTORS PROBABLY WON'T SEE AS MANY FAMILIAR CORPORATE NAMES SELLING BONDS AS THEY HAVE IN THE PAST THAT'S BECAUSE MUCH OF THE MONEY COMPANIES RAISED IN THE PAST 18 MONTHS BY SELLING BONDS WAS USED TO REFINANCE OLDER COSTLIER DEBT MUCH OF THIS BALANCESHEET RESTRUCTURING HAS BEEN COMPLETED AT LARGE TELEPHONE AND POWER COMPANIES AS WELL AS THE BIGGEST FINANCIAL COMPANIES THE NEXT BIG WAVE OF CORPORATE BOND OFFERINGS INVESTMENT BANKERS SAY WILL COME FROM LOWERRATED CORPORATIONS US AND FOREIGN AND FROM SMALLER FIRSTTIME BOND ISSUERS ONE OF THE HOTTEST MARKETS FOR GROWTH IS EXPECTED TO BE THE SOCALLED YANKEE MARKET WHERE FOREIGN COMPANIES AND GOVERNMENTS SELL DEBT IN THE US CORPORATE MARKET YANKEE ISSUANCE ACTUALLY PLUNGED DURING THE SECOND QUARTER TO 127 BILLION FROM 208 BILLION IN THE FIRST QUARTER IN THE SIX MONTHS YANKEE ISSUANCE TOTALED 335 BILLION UP FROM 201 BILLION IN THE YEARAGO SIX MONTHS ROBERT DIAMOND JR A VICE CHAIRMAN AT CS FIRST BOSTON GROUP SAYS HE EXPECTS THE YANKEE MARKET TO BE ONE OF THE STRONGEST SECTORS IN THE SECOND HALF MR DIAMOND SAYS THAT FOREIGN COMPANIES WILL FLOCK TO THE US MARKET FOR A NUMBER OF REASONS INCLUDING THE LEVEL OF INTEREST RATES CURRENTLY AMONG THE LOWEST IN THE WORLD THE LARGE POOL OF FUNDS WILLING TO INVEST IN FOREIGN COMPANIES AND THE ABILITY TO SELL VERY LONGTERM DEBT OUTSIDE THE US BOND MARKET IT IS RARE TO FIND SECURITIES WITH MATURITES LONGER THAN 10 YEARS NEW MARKETS ARE OPENING UP IN SOUTH AMERICA ASIA AND CHINA SAID BRADLEY JACK MANAGER OF THE US DEBT SYNDICATE DESK AT LEHMAN BROTHERS A UNIT OF AMERICAN EXPRESS CO THERE HAS BEEN LESS SUPPLY IN EUROPE SO FAR THIS YEAR BUT THAT COULD PICK UP IN THE SECOND HALF ANOTHER SECTOR THAT IS EXPECTED TO CONTINUE TO GROW IS THE JUNK BOND MARKET WHERE A GROWING NUMBER OF FIRSTTIME ISSUERS ARE TAPPING THE MARKET WITH SURPRISING SUCCESS SO FAR THIS YEAR UNDERWRITERS HAVE SOLD MORE THAN 258 BILLION OF JUNK BONDS UP FROM 193 BILLION IN THE FIRST SIX MONTHS OF 1992 CANDACE CUMBERBATCH CONTRIBUTED TO THIS ARTICLE 9307010070 930701 INTERNATIONAL ALGERIANS WONDER WHO'S REALLY BEHIND RECENT SERIES OF HIGHPROFILE MURDERS BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL OULKHOU ALGERIA THOUSANDS OF MOURNERS SCALE THE STEEP SLOPES TO THIS HILLTOP VILLAGE TO SAY GOODBYE TO ONE OF ALGERIA'S BRIGHTEST YOUNG WRITERS TAHAR DJAOUT POET NOVELIST AND COFOUNDER OF ALGERIA'S LEADING POLITICAL JOURNAL WAS 38 YEARS OLD WHEN HE WAS GUNNED DOWN NEAR HIS HOME RECENTLY THE LATEST VICTIM IN A CHAIN OF MYSTERIOUS MURDERS THAT HAS TAKEN THE LIVES OF FIVE PROMINENT ALGERIAN INTELLECTUALS SINCE FEBRUARY AS HIS FLAGDRAPED COFFIN IS BORNE TOWARD ITS BURIAL PLOT OVERLOOKING THE SEA DUELING CHANTS RISE UP ONE ACCUSES THE GOVERNMENT OF MURDERING MR DJAOUT THE OTHER BLAMES THE CRIME ON MUSLIM REBELS THIS IS OUR ULTIMATE PROBLEM SAYS AREZKI METREF A LIFELONG FRIEND OF MR DJAOUT'S AND COFOUNDER WITH HIM OF THE WEEKLY JOURNAL RUPTURES WE DON'T KNOW WHAT TO BELIEVE ANY MORE TRUST LIKE PEACE HAS VANISHED FROM ALGERIA SINCE JANUARY 1992 WHEN A MILITARYLED JUNTA DEPOSED ALGERIA'S PRESIDENT AND CANCELED PARLIAMENTARY ELECTIONS THAT ISLAMIC POLITICIANS WERE POISED TO WIN THE COUNTRY HAS BEEN GRIPPED BY WHAT MANY ALGERIANS VIEW AS A CONTEST OF EVIL BETWEEN YOUNG MUSLIM INSURGENTS WHO WILL DO ANYTHING TO SEIZE POWER AND AGING MILITARY PLUTOCRATS WHO WILL DO ANYTHING TO KEEP IT IN THE MIDDLE LIE THE BULK OF ALGERIA'S 26 MILLION PEOPLE WHO ARE SUSPICIOUS AND AFRAID OF BOTH SIDES THE REGIME AND THE EXTREMISTS NEED EACH OTHER SAYS MUSTAFA SOUAG A PROFESSOR OF LITERATURE AT THE UNIVERSITY OF ALGIERS THE GOVERNMENT WITHOUT THE VIOLENCE HAS NO LEGITIMATE REASON TO STAY IN POWER THE ISLAMICISTS WITHOUT THE GOVERNMENT HAVE NO LEGITIMATE REASON TO USE VIOLENCE THE ALGERIAN CRISIS HAS TWO LEVELS THE FIRST INCLUDES THE ROUTINE CLASHES BETWEEN MUSLIM EXTREMISTS AND SECURITY FORCES THAT HAVE COST 600 TO 1000 LIVES IN THE PAST 18 MONTHS THE SECOND INVOLVES THE SHOWCASE MURDERS OF PROFESSIONALS AND INTELLECTUALS THE FIVE SUCH MEN ASSASSINATED THIS YEAR A DOCTOR A SOCIALWELFARE LEADER A PSYCHIATRIST A HISTORIAN AND MR DJAOUT EACH HAD PUBLICLY OPPOSED ISLAMIC EXTREMISM BUT ALSO SCORNED THE MILITARY RULERS THESE WERE MEN WHO MADE TROUBLE FOR THE SYSTEM SAYS TAWFIQ HENNI ONE OF ALGERIA'S TOP CANCER DOCTORS AND A FRIEND OF THREE OF THE MURDERED INTELLECTUALS ONE MUST LOOK CLOSELY AT WHO PROFITS FROM THESE CRIMES THE BELIEF THAT MORE THAN AN ISLAMIC INSURGENCY IS ROILING ALGERIA BEGAN TO SPREAD AFTER THE PECULIAR ASSASSINATION OF PRESIDENT MOHAMMED BOUDIAF A YEAR AGO MR BOUDIAF UNTAINTED BY THE PALL OF CORRUPTION THAT LAY OVER THE REST OF THE REGIME HAD LAUNCHED AN UNPRECEDENTED CAMPAIGN TO CLEAN UP GOVERNMENT AND INSPIRE ALGERIA'S LEGIONS OF UNEMPLOYED YOUNG MEN TO LIFT UP THEIR LOT HIS EFFORTS WERE HALTED WHEN ONE OF HIS SECURITY GUARDS MURDERED HIM ON NATIONAL TELEVISION AS OTHER GUARDS LOOKED ON IMPASSIVELY THE ASSASSIN CLAIMED TO HAVE ACTED ALONE OUT OF RELIGIOUS CONVICTIONS BUT FEW ALGERIANS BELIEVED HIM A COMMISSION OF INQUIRY FOUND MOUNTAINS OF EVIDENCE INDICATING A HIGHLEVEL CONSPIRACY FOR EXAMPLE THE ONLY OTHER PERSON SHOT NEAR THE CRIME SCENE THE COMMISSION FOUND WAS A POLICEMAN HIT BY SECURITY FORCES AS HE CHASED THE FLEEING KILLER THE COMMISSION COULDN'T OR WOULDN'T PINPOINT THE CULPRITS IN THE CONSPIRACY THOUGH IT DID NAME THE MAIN BENEFICIARIES OF THE CRIME ONE WAS THE ISLAMIC INSURGENTS WHO HAD CALLED FOR THE PRESIDENT'S DEATH AND THE OTHERS WERE THE CLANS OF A SYSTEM OF POWER THAT HAS PROGRESSIVELY INSTALLED ITSELF AT THE HEAD OF THE COUNTRY LIKE AN IRON COLLAR THE FEUDAL POLITICOFINANCIALS WHO HAVE AMASSED FORTUNES IN REDUCING ALGERIA TO A STATE OF INTERNATIONAL BEGGARY THE COMMISSION ADDED COULDN'T RESIGN THEMSELVES TO GIVING UP POWER MUCH LESS ANSWERING FOR THEIR ADMINISTRATION TO PROSECUTORS UNLEASHED BY MR BOUDIAF SOLVE THE BOUDIAF KILLING SAYS DR HENNI AND YOU'LL REALLY UNDERSTAND WHAT'S GOING ON IN THIS COUNTRY MR DJAOUT WAS SHOT WHILE WARMING UP HIS CAR TO GO TO WORK TWO DAYS LATER A MAN IN POLICE CUSTODY CONFESSED ON NATIONAL TELEVISION THAT HE DROVE THE GETAWAY CAR FOR ISLAMIC EXTREMISTS WHO DID THE SHOOTING BUT FEW OF MR DJAOUT'S FRIENDS BELIEVE THIS VERSION OF EVENTS WE HAVE NO WAY OF KNOWING WHETHER THE SUPPOSED DRIVER PARTICIPATED IN THE MURDER OR NOT SAYS MR METREF THE COFOUNDER OF RUPTURES THE KILLERS MAY HAVE BEEN FUNDAMENTALISTS BUT THERE ARE SO MANY UNDERGROUND CONFLICTS WITHIN THE POWER STRUCTURE THAT IT'S POSSIBLE ONE OR ANOTHER GROUP IS USING THE FUNDAMENTALISTS FOR THEIR OWN AIMS TRYING TO DIVINE JUST WHO IS BEHIND THE TERROR HAS BECOME ALGERIANS' FAVORITE PASTIME BUT DESPITE THE SCATHING IMPLICATIONS OF THE BOUDIAF COMMISSION REPORT ALGERIANS KNOW AS LITTLE AS EVER ABOUT THE INNER WORKINGS OF THEIR GOVERNMENT A LOT OF PEOPLE WANT TO USE THE RECENT MURDERS TO ATTACK THE ARMY SAYS ALI BAHMANE EDITOR IN CHIEF OF EL WATAN ALGERIA'S BIGGEST INDEPENDENT DAILY BUT TO ATTACK THE MILITARY HOWEVER INDIRECTLY IS TO ENDANGER THE COUNTRY AND JUSTIFY EXTREMISM SO RUMORS AND CONFUSION RULE THE DAY IN THE HEART OF THE CASBAH THE FAMOUS WARREN OF ALLEYS AND INTRIGUE IN DOWNTOWN ALGIERS AN ELECTION POSTER FOR THE NOWOUTLAWED ISLAMIC SALVATION FRONT STILL HANGS ABOVE THE ENTRANCE TO THE OFFICES OF LAADI FLICI DR FLICI WHO LIVED AND WORKED AS A FAMILY DOCTOR IN THE IMPOVERISHED CASBAH ALL HIS LIFE WAS GUNNED DOWN IN MARCH HE WAS FOUND IN MIDAFTERNOON BY HIS MEDICAL ASSISTANT LYING FACE DOWN IN A POOL OF BLOOD ON HIS DESK A PENCIL STILL IN HIS HAND POLICE BLAMED ISLAMIC ASSASSINS DR FLICI'S NEIGHBORS AREN'T SO SURE ABDUL RAHMAN WHO OWNS THE LITTLE RESTAURANT ACROSS THE STREET THAT SERVED DR FLICI HIS BREAKFAST FOR 20 YEARS SAYS HE NOTICED A PAIR OF MYSTERIOUSLOOKING MEN IN FRONT OF THE MEDICAL OFFICES THE NIGHT BEFORE THE MURDER THE STRANGEST THING HE SAYS WAS THAT THE MEN WERE OUT AFTER THE 1030 PM CURFEW WHO GOES OUT AFTER CURFEW HE ASKS IN A QUESTION NO ALGERIAN WOULD BOTHER ANSWERING OUT LOUD ONLY GOVERNMENT AGENTS OF COURSE 9307010069 930701 CREDIT MARKETS LONG YIELDS HOVER NEAR 16YEAR LOWS CREATING DEMAND FOR RISKIER ISSUES WITH BETTER RETURNS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH YIELDS FOR LONGTERM TREASURYS HOVERING AT THEIR LOWEST LEVELS IN 16 YEARS INVESTOR DEMAND FOR RISKIER BUT HIGHERYIELDING SECURITIES SEEMS TO GROW STRONGER EACH DAY AND YESTERDAY WAS NO EXCEPTION DEMAND WAS SO STRONG YESTERDAY FOR TWO ESPECIALLY RISKY CREDITS FROM THE DEVELOPMENT BANK OF THE PHILIPPINES AND USAIR GROUP INC THAT THE ISSUERS WERE ABLE TO INCREASE THE SIZE OF THEIR OFFERINGS MEANWHILE US TREASURY YIELDS WERE LITTLE CHANGED WITH THE BENCHMARK 30YEAR TREASURY BOND DROPPING LESS THAN 1/8 POINT OR LESS THAN 125 FOR A BOND WITH A 1000 FACE VALUE TO 105 23/32 ITS YIELD WAS UNCHANGED AT 667 NEAR ITS LOWEST LEVELS SINCE THE TREASURY BEGAN REGULAR SALES OF THE LONG BOND IN 1977 US CORPORATIONS SOLD MORE THAN 1 BILLION OF NEW NOTES AND BONDS YESTERDAY INCLUDING A PAIR OF JUNK BOND ISSUES FROM USAIR GROUP AND TURNER BROADCASTING SYSTEM INC THAT MET VERY STRONG INVESTOR DEMAND DESPITE ITS JUNK RATING AND CUTTHROAT COMPETITION IN THE AIRLINE BUSINESS THE ISSUE FROM USAIR GROUP PARENT OF THE AIRLINE USAIR WAS GREETED WITH ENOUGH DEMAND TO MERIT AN INCREASE IN ITS SIZE TO 300 MILLION FROM A PLANNED 150 MILLION THE 10YEAR NOTES WERE PRICED TO YIELD 10 MORE THAN FOUR PERCENTAGE POINTS ABOVE THE TREASURY'S 10YEAR NOTE THE ISSUE WAS RATED BA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBPLUS BY STANDARD & POOR'S CORP THE LEAD UNDERWRITER IS MORGAN STANLEY & CO A 300 MILLION ISSUE OF NONCALLABLE 20YEAR SENIOR NOTES FROM TURNER BROADCASTING WAS PRICED LIKE AN INVESTMENTGRADE AND HAD MORE THAN 1 BILLION IN DEMAND SAID AN OFFICIALWITH LEAD UNDERWRITER FIRST BOSTON CORP TURNER BROADCASTING OWNS THE CABLE NEWS NETWORK AMONG OTHER NEWS AND ENTERTAINMENT CONCERNS THE JUNK BOND ISSUE RATED BA2 BY MOODY'S AND DOUBLEBPLUS BY S&P WAS PRICED AT 9910 WITH A COUPON OF 8375 TO YIELD 847 177 PERCENTAGE POINTS ABOVE THE TREASURY 20YEAR BOND ONE OF YESTERDAY'S MOST INTERESTING NEW ISSUES CAME IN THE INTERNATIONAL MARKET FOR EUROBONDS FROM THE DEVELOPMENT BANK OF THE PHILIPPINES THE FIVEYEAR ISSUE OF 175 MILLION WAS INCREASED FROM A PLANNED SIZE OF 75 MILLION EUROBONDS ARE SECURITIES SOLD TO INVESTORS OUTSIDE THE COUNTRY OF THE ISSUER OFTEN IN A CURRENCY DIFFERENT FROM THAT OF THE COUNTRY OF THE ISSUER THE NOTES WERE PRICED AT 99434 WITH A COUPON OF 8 TO YIELD 814 310 PERCENTAGE POINTS OVER THE TREASURY'S FIVEYEAR NOTE UNLIKE MANY OTHER ISSUES FROM GOVERNMENTOWNED PHILIPPINE CORPORATIONS THIS ONE DID NOT COME WITH A GUARANTEE FROM THE GOVERNMENT IN THE CASE OF DEFAULT DESPITE THE LACK OF SUCH A GUARANTEE THE ISSUE CAME AT A TIGHTER YIELD SPREAD OVER COMPARABLE US TREASURYS THAN A RECENT PHILIPPINE GOVERNMENT ISSUE WITH JUST A THREEYEAR MATURITY THT ISSUE FROM THE REPUBLIC OF THE PHILIPPINES IN FEBRUARY HAD A SPREAD OF 320 PERCENTAGE POINTS OVER THREEYEAR US TREASURY NOTES ACCORDING TO CITIBANK INTERNATIONAL PLC WHICH UNDERWROTE YESTERDAY'S OFFERING ACCORDING TO CITIBANK OFFICIALS DEMAND FOR THE ISSUE WAS EVENLY SPREAD AMONG INVESTORS IN ASIA EUROPE AND THE US THE ISSUE HASN'T YET BEEN RATED BY S&P OR MOODY'S THOUGH CITIBANK OFFICIALS SAID THAT RATINGS MAY BE FORTHCOMING NEITHER RATING AGENCY HAS YET GIVEN A SOCALLED COUNTRY RATING TO THE PHILIPPINES ONE BUYER OF THE PHILIPPINES ISSUE WAS BANCO SANTANDER ASSET MANAGEMENT IN NEW YORK A MONEYMANAGEMENT UNIT OF BANCO SANTANDER WHICH IS BASED IN SPAIN ACCORDING TO MANUEL BALBONTIN WHO WORKS IN THE BANK'S ASSETMANAGEMENT OPERATIONS THE UNIT PURCHASED LESS THAN 10 OF THE ISSUE SOME OF WHICH WILL BE PLACED IN SEVERAL OFFSHORE EMERGINGMARKETS FUNDS THAT THE BANK PLANS TO LAUNCH IN THE NEAR FUTURE THE LEADERS OF THE PHILIPPINES ARE DOING THE RIGHT THINGS ON THE ECONOMIC FRONT AND ON THE POLITICAL FRONT HE SAID MR BALBONTIN SAID THAT THE COUNTRY APPEARED TO HAVE ACHIEVED A LEVEL OF POLITICAL AND ECONOMIC STABILITY THAT MAY MAKE IT AN ATTRACTIVE AREA FOR OTHER ASIAN NATIONS TO USE FOR NEW MANUFACTURING OPERATIONS AT THE END OF LAST YEAR THE PHILIPPINES OFFICIALLY ENTERED THE BRADY PROGRAM FOR RESTRUCTURING ITS DEBT LOAD THANKS IN PART TO THAT MOVE SAID MR BALBONTIN INVESTORS HAVE BEGUN TO TAKE THE PHILIPPINES MUCH MORE SERIOUSLY THE BRADY PROGRAM WAS A SERIES OF GUIDELINES FORMULATED BY FORMER TREASURY SECRETARY NICHOLAS BRADY TO HELP DEVELOPING NATIONS RESTRUCTURE THEIR DEBT AND REOPEN THEIR CAPITAL MARKETS TO NEW INVESTMENT BUT YESTERDAY ALSO OFFERED A LESSON IN JUST HOW RISKY A TRIP ABROAD CAN BE FOR AN INVESTOR WITH THE JAN 1 TARGET FOR IMPLEMENTING THE NORTH AMERICAN FREE TRADE AGREEMENT JEOPARDIZED BY A US DISTRICT COURT RULING YESTERDAY PRICES OF MANY MEXICAN BONDS PLUNGED ENVIRONMENTAL AND PUBLIC ADVOCACY GROUPS SUCCEEDED IN SECURING A RULING THAT A NAFTA WITHOUT AN ENVIRONMENTAL IMPACT STUDY WOULD VIOLATE THE US NATIONAL ENVIRONMENTAL POLICY ACT SOME INVOLVED IN THE LAWSUIT ESTIMATE THAT THE STUDY COULD TAKE SIX TO NINE MONTHS TO COMPLETE SOCALLED MEXICAN BRADY PAR BONDS SOLD IN 1990 AND MATURING IN 2019 SAW THEIR PRICES PLUNGE MORE THAN 15 POINTS OR MORE THAN 15 FOR A BOND WITH A 1000 FACE VALUE TO 72 THEIR YIELDS ROSE TO 905 FROM 886 ON TUESDAY US TREASURY NOTES AND BONDS POSTED AN IMPRESSIVE COMEBACK FROM MORNING DECLINES TO END LITTLE CHANGED YESTERDAY AS PLAYERS CONTINUED TO LOOK AHEAD TO TOMORROW WHEN THE JUNE EMPLOYMENT REPORT IS SLATED TO BE RELEASED LIKE THE 30YEAR BOND THE 10YEAR NOTE DROPPED LESS THAN 1/8 POINT ITS PRICE WAS QUOTED LATE YESTERDAY AT 103 13/32 FOR A YIELD OF 577 UP FROM 576 ON TUESDAY THROUGH MUCH OF THE SESSION TREASURY PRICES WERE HEADING LOWER DEPRESSED BY ACCOUNTS TRIMMING BACK ON POSITIONS BEFORE THE END OF THE QUARTER AND AHEAD OF THE EMPLOYMENT REPORT AT ONE STAGE THE 30YEAR BOND HAD DROPPED ALMOST A HALF POINT BUT BY MIDAFTERNOON THE SELLING PRESSURE ABATED AND THE MARKET CAME BACK DEALERS SAID THE BUYING APPEARED TO COME FROM SPECULATIVE PLAYERS REVERSING SHORTS POSITIONS WHERE SECURITIES HAD BEEN SOLD IN ANTICIPATION OF BEING BOUGHT BACK AT LOWER LEVELS FOR A PROFIT TRADERS LARGELY IGNORED A STEEP RISE IN COMMODITY PRICES EVEN THOUGH IT MAY PORTEND GROWING INFLATIONARY PRESSURES BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN PRICES OF MORTGAGE SECURITIES ROSE AS THE FIRST HALF DREW TO A CLOSE WITH VOLUMES EXPECTED TO BE BELOW LEVELS SEEN IN LAST YEAR'S FIRST HALF ACCORDING TO EARLY ESTIMATES FROM SECURITIES DATA CO THE VOLUME OF AGENCY AND NONAGENCY SECURITIES IS EXPECTED TO BE DOWN ABOUT 10 TO 1842 BILLION FROM 204 BILLION DEALERS CREDITED SOME OF THE DIP TO THE RETICENCE OF INVESTMENT FIRMS TO CHURN OUT DEALS GIVEN THE BLOW THE MARKET RECEIVED AS PREPAYMENT RATES SKYROCKETED LAST FALL AND INVESTORS FLED WARINESS OVER THE DIRECTION OF INTEREST RATES AND THEIR EFFECT ON EARLY REFINANCINGS CONTINUES TO PLAGUE THE MARKET THE CONCERN WAS EVIDENT AGAIN YESTERDAY IN INTERESTONLY SECURITIES WHICH SLIPPED AFTER EARLY GAINS AS PRICES IN THE TREASURY MARKET REGAINED GROUND BUT PRICES OF 65 SECURITIES THE CURRENT COUPON PASSTHROUGHS AS WELL AS THE MORE ABUNDANT 7 SECURITIES GAINED 1/16 TO 1/8 IN THE PRIMARY MARKET FANNIE MAE ANNOUNCED TWO NEW REAL ESTATE MORTAGE INVESTMENT CONDUITS TOTALING 400 MILLION AND A 200 MILLION INCREASE TO A PREVIOUSLY ANNOUNCED DEAL FREDDIE MAC ANNOUNCED INCREASES TO THREE DEALS TOTALING 11 BILLION JOHN HUGHES CONTRIBUTED TO THIS ARTICLE 9307010068 930701 INTERNATIONAL BRIEF IRI TELECOMMUNICATIONS SECTOR IN ITALY PREPARES TO PRIVATIZE THE BOARD OF ITALIAN STATE HOLDING COMPANY ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE APPROVED A PLAN TO CONSOLIDATE ITALY'S TELECOMMUNICATIONS CARRIERS INTO ONE COMPANY AS PART OF A REFORM OF THE SECTOR IN PREPARATION FOR PRIVATIZATION IRI SAID THE PLAN WHICH MUST BE APPROVED BY THE TREASURY MINISTER WOULD REORGANIZE THE FIVE CARRIERS IT CONTROLS INTO A SINGLE ORGANIZATION CREATE A SEPARATE BODY FOR MANUFACTURERS OF TELECOMMUNICATIONS EQUIPMENT AND ANOTHER FOR MOBILE TELEPHONES AND THEN GRADUALLY PRIVATIZE ALL OF THE BUSINESSES LATE WEDNESDAY MEANWHILE PRIME MINISTER CARLO CIAMPI LISTED STET IRI'S HOLDING COMPANY FOR THE TELECOMMUNICATIONS SECTOR AS ONE OF SEVEN COMPANIES TO BE PRIVATIZED QUICKLY IRI CURRENTLY OWNS 51 OF THE ORDINARY SHARES OF STET FORMALLY KNOWN AS SOCIETA FINANZIARIA TELEFONICA THE REMAINING 49 IS LISTED ON THE MILAN STOCK EXCHANGE IRI PREVIOUSLY HAS SAID IT PLANS TO SELL ALL OF ITS STET SHARES BUT HAS NEVER GIVEN A TIME FRAME 9307010067 930701 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN LEASED AUTOS HELP KEEP THE USEDCAR MARKET CRUISING FOR NOW AS PERSONAL AUTO LEASING CATCHES ON RETURNED LEASED CARS BOOST DEALERS' GROWING USEDCAR STOCK NEWSPAPER ADVERTISING AND CONSUMER CHOICES BUT PRIVATE SELLERS MAY FIND IT TOUGH TO COMPETE FOR BUYERS AGAINST FORMERLY LEASED CARS THAT ARE STILL UNDER WARRANTY STARTING IN THE NEXT YEAR OR SO WE'LL SEE IF THERE IS ANY HUGE IMPACT ON THE USEDCAR MARKET SAYS DOUG AIKEN OF AUTOMOTIVE LEASE GUIDE IN SANTA BARBARA CALIF DEALERS LIKE SCHAUMBURG TOYOTA IN ILLINOIS AND MASSACHUSETTS' NATICK AUTO SALES SAY HALF THEIR USED CARS ARE FORMERLY LEASED AUTOS PEOPLE PREFER FORMERLY LEASED CARS THAT MAY BE MORE GENTLY DRIVEN THAN PRIVATELY OWNED ONES SAYS JOE CARLEY OF JOE AND JIM CARLEY'S WYCKOFF FORD IN NEW JERSEY MEANWHILE DEMAND HOLDS UP IN THE PRIVATE USEDCAR MARKET THE CHICAGO SUNTIMES SEES A 10 TO 15 RISE IN LEASE ADS SINCE '92 WITH NO PRIVATEPARTY AD FALLOFF THE ATLANTA CONSTITUTION'S CLASSIFIED AD REVENUE IS UP ABOUT 7 THIS YEAR LATELY BACKTOSCHOOL CARS HELPED LINAGE HIKERS PHONE HOME CELLULAR PAY PHONES RING AT REMOTE AND CROWDED SPOTS PAY PHONES POWERED BY SOLAR PANELS OR BATTERIES POP UP IN PLACES UNREACHABLE BY PHONE LINES AS CELLULAR SYSTEMS SPREAD U S WEST PROVIDES WIRELESS PAY PHONE SERVICE ON SEATTLE'S FERRIES AND RECENTLY PUT A UNIT ON A MOUNTAIN IN WASHINGTON'S MOUNT BAKER STATE PARK HIKERS NEED A CREDIT CARD TO CALL BUT 911 CALLS ARE FREE METRONORTH COMMUTER RAIL LINE BEGAN TESTING 32 PAY PHONES ON ITS TRAINS IN JANUARY AND NOW PLANS TO ADD 240 STARTING NEXT YEAR TAXIS RIVERBOAT CASINOS AND SKI SLOPES ALSO ARE CANDIDATES FOR THE SERVICE WHICH COSTS LESS THAN SATELLITE HOOKUPS USED FOR AIRPLANE PHONES THE NICHE HAS A LOT OF POTENTIAL SAYS JANE O'DONOGHUE OF CELLULAR ONE IN NEW JERSEY BUT HERSCHEL SHOSTECK A CONSULTANT IN MARYLAND SAYS THE PHONES HAVE MORE VALUE TO CELLULAR FIRMS AS A PROMOTION DEVICE RATHER THAN AS A PROFIT STREAM TELULAR CORP IN TENNESSEE SAYS IT GETS MORE ORDERS FROM COUNTRIES WITH LIMITED PHONELINE SERVICE CALM PUBLIC HEARINGS ARE THE GOAL OF AN OPEN HOUSE FORMAT THAT GAINS FAVOR SEVERAL STATE AGENCIES ELIMINATE STIFF FORMAL HEARINGS ON VOLATILE ISSUES SUCH AS HIGHWAY GROWTH IN FAVOR OF OPEN HOUSES THAT LET TOWNSFOLK AND OFFICIALS INFORMALLY AIR VIEWS THE IDEA IS TO MAKE THE PROCESS MORE USER FRIENDLY SAYS THE HEAD OF OHIO'S TRANSPORTATION DEPARTMENT WHICH TRIES THE SESSIONS IN A PILOT PROGRAM RESIDENTS WALK AROUND PROJECT DISPLAYS SPEAK PRIVATELY TO OFFICIALS AND THEN MAKE A PUBLIC STATEMENT VIA A STENOGRAPHER TAPE RECORDER OR VIDEO MOUNTAIN HOME IDAHO USED THE OPENHOUSE FORMAT TWICE INCLUDING A HEARING ON A NEW CITY PLAN WE EXPECTED WAR WE GOT A LOT OF COMPLIMENTS SAYS PAUL RAYMOND CITY ENGINEER HE AND OTHERS NOTE THAT THE FORUM DRAWS MORE DETAILED QUERIES AND ENCOURAGES THE SHY TO TAKE PART STEVE LEROY OF GROUP 2000 A CONSULTANT IN BOISE IDAHO CHARGES 5000 TO 10000 TO ORGANIZE SUCH OPEN HOUSES CALIFORNIA'S AND OHIO'S TRANSPORTATION DEPARTMENTS SAY THE ONETIME COST AND EXTRA TIME ARE WORTH THE EFFORT THE CALIFORNIA AGENCY PREFERS OFFERING VIDEO PRESENTATIONS WHICH THEY FIND AVOID AN ADVERSARIAL SITUATION SUPER MARIO BUZZWORD MARIO GABELLI OF GAMCO INVESTORS COINS THE PHRASE GABELLI INTERACTIVE COUCH POTATO TO DESCRIBE THE FIRM'S TAILORED PORTFOLIOS FEATURING STOCKS IN CABLE PHONE BROADCAST AND OTHER FIRMS LIKELY TO TRAVEL THE DATA SUPERHIGHWAY INTO THE HOME SEVERAL PORTFOLIOS A 250000 MINIMUM IS REQUIRED MAY START THIS WEEK SAYS A FIRM EXECUTIVE PACK MORE PAY LESS THE EUROPEAN COMMUNITY IS EXPECTED TO RAISE ALLOWANCES FOR DUTYFREE GOODS LIKE SCARVES AND TIES TO ABOUT 78 FOR TRAVELERS WITHIN THE EC AND ABOUT 148 FOR THOSE ENTERING THE EC THE CURRENT LIMITS ARE ABOUT 39 ACTIVIST FAMILIES TAKE NOTE THE WHOLE FOODS MARKET A NATURAL FOODS GROCERY CHAIN BASED IN AUSTIN TEXAS MOUNTS AN ANTIPESTICIDE CAMPAIGN THE STORES GIVE KIDS POSTCARDS WITH PICTURES OF FACES MADE FROM FRUIT TO COLOR AND MAIL WHILE ADULTS GET FORM LETTERS TO FAX TO WASHINGTON RESEALABLE PACKAGES PULL WEIGHT WITH THRIFTY CONSUMERS AND RECYCLERS MORE THAN TWOTHIRDS OF SHOPPERS POLLED BY THE CONSUMER NETWORK A PHILADELPHIA RESEARCH GROUP SAY THAT THE MOST EFFECTIVE RECYCLING IS THE KIND THEY DO AT HOME BY REUSING PACKAGES CONSUMERS DON'T BELIEVE ALL THE CLAIMS OF RECYCLING ADDS MONA DOYLE GROUP PRESIDENT BUT CONSUMERS WHO BUY GLASS JARS WITH RESEALABLE LIDS AND THEN REUSE THE CONTAINERS FEEL THEY'RE DOING THEIR PART TO RECYCLE SHE SAYS SO STRONG IS THE URGE TO REUSE STURDY CONTAINERS THAT CONSUMERS HAVE BECOME ANGERED BY ONETIMEONLY MICROWAVABLE PLATES THAT COME WITH MANY PREPARED FROZEN MEALS SAYS MS DOYLE MEANWHILE PACKAGING MAGAZINE SAYS THAT NEW EASIERTOOPEN ZIPPERPOUCHES ARE HEATING UP COMPETITION IN THE COMPETITIVE CHEESEPRODUCTS MARKET MS DOYLE NOTES THAT BOTH PACKAGE TRENDS HAVE A COMMON GOAL OF REDUCING WASTE ONE IRONY AMONG POLITICALLY CORRECT CONSUMERS WATER DRINKERS WHO BUY SINGLEUSE PLASTIC BOTTLES SAYS MS DOYLE BRIEFS OF MICE AND MAN'S BEST FRIEND MOTORMOUSE PRODUCTS INC VANCOUVER BC OFFERS COMPUTER MICE SHAPED LIKE A CORVETTE OR A LAMBORGHINI MEANWHILE IN BURBANK CALIF TINY PET SHADE SELLS SUNSCREEN FOR DOGS CATS AND HORSES 9307010066 930701 DOW JONES EQUITY MARKET INDEX NEW YORK TWO CHANGES ARE BEING MADE IN THE DOW JONES EQUITY MARKET INDEX EFFECTIVE TODAY HOSPITAL CORP OF AMERICA INC IS BEING ADDED TO THE HEALTHCARE INDUSTRY GROUP AND DIAL CORP IS BEING MOVED FROM THE CONGLOMERATES INDUSTRY GROUP TO THE HOUSEHOLD PRODUCTS NONDURABLE INDUSTRY GROUP 9307010065 930701 WHAT'S NEWS WORLDWIDE THE HOUSE RETAINED A GOVERNMENT ABORTIONFUNDING BAN IN A KEY TEST VOTE IN A LOPSIDED VICTORY FOR ABORTION FOES LAWMAKERS KEPT THE 16YEAROLD BAN ON FUNDING FOR POOR WOMEN'S ABORTIONS AN EMOTIONAL DEBATE PRIOR TO THE 255178 VOTE PROVOKED BITTER EXCHANGES AS LEGISLATORS TRYING TO REPEAL THE BAN SAID THAT IT DISCRIMINATED AGAINST THE POOR AND THAT IT WAS TIME TO OVERTURN REGRESSIVE GOP POLICIES ABORTION FOES CAST THAT POSITION AS ON THE RADICAL FRINGES WITH 114 HOUSE NEWCOMERS BOTH SIDES SAW THE VOTE AS A BAROMETER FOR FUTURE BATTLES ON THE ISSUE THE LAWMAKERS THOUGH DID ENDORSE A CHANGE IN THE LAW TO PERMIT FUNDING IN CASES OF RAPE AND INCEST AS WELL AS WHEN THE MOTHER'S LIFE IS IN DANGER BOSNIA'S MUSLIMLED ARMY CLAIMED IT CAPTURED A CROAT CAMP IN AN OFFENSIVE THAT ALSO GAVE THE ARMY CONTROL OF A HYDROELECTRIC DAM BUT THE GOVERNMENT'S SUCCESS WAS OFFSET BY A JOINT SERBCROAT ATTACK NORTHWEST OF SARAJEVO MEANWHILE UN AID OFFICIALS PREPARED TO REDUCE FOOD RATIONS IN BOSNIA CITING INSUFFICIENT SUPPLIES AGRICULTURE SECRETARY ESPY FLEW OVER IOWA FARMLAND FLOODED BY THE MISSISSIPPI RIVER WHICH WAS STILL RISING AFTER MORE THAN A WEEK OF RAIN HE SAID THE GOVERNMENT WAS WEIGHING DISASTER AID FOR SOYBEAN AND CORN FARMERS MOST OF NORTHERN ILLINOIS MEANWHILE WAS UNDER A FLASH FLOOD WATCH THE JUSTICE DEPARTMENT WITHHELD EVIDENCE AND HINDERED THE DEFENSE OF JOHN DEMJANJUK WHO IS FACING A DEATH SENTENCE IN ISRAEL FOR NAZI WAR CRIMES A US JUDGE RULED BUT THE JUDGE UPHELD THE DEPORTATION OF THE RETIRED CLEVELAND AUTO WORKER AND RECOMMENDED THAT NO ACTION BE TAKEN AGAINST THE GOVERNMENT ATTORNEYS US ATTACK HELICOPTERS BLASTED A SUSPECTED MILITIA BASE IN SOMALIA'S CAPITAL WITH MISSILES AND CANNON FIRE AND GROUND TROOPS SWEPT THROUGH REFUGEE CAMPS IN A CRACKDOWN ON GUNMEN LINKED TO CLAN LEADER AIDID THE TROOPS SEIZED WEAPONS AND DESTROYED A MOGADISHU COMPOUND THAT ALLEGEDLY WAS USED TO STAGE ATTACKS ON UN FORCES CLINTON PROBABLY WILL ACCEPT HIS ADVISERS' RECOMMENDATION TO DROP US OPPOSITION TO A FRENCHLED EFFORT TO HELP VIETNAM PAY OFF 140 MILLION IN ARREARS TO THE IMF A SENIOR US OFFICIAL SAID AFTER THAT DEBT IS PAID OFF VIETNAM WOULD BE ELIGIBLE TO BORROW LARGE SUMS FROM INTERNATIONAL INSTITUTIONS AN IRAQI GOVERNMENT NEWSPAPER SAID BAGHDAD'S LEADERSHIP BLUNDERED IN BOWING TO UN DEMANDS TO SCRAP THE COUNTRY'S LONGRANGE MISSILES THE PAPER IN A FRONTPAGE ARTICLE THREE DAYS AFTER A US MISSILE ATTACK CONTENDED THAT IRAQ MADE A STRATEGIC MISTAKE IN ACCEPTING GULF WAR TRUCE TERMS CALLING FOR DESTRUCTION OF THE ARSENAL CLINTON IS EXPECTED TO EXTEND A MORATORIUM ON US UNDERGROUND NUCLEAR TESTING OFFICIALS SAID LAWMAKERS AND PRESIDENTIAL ADVISERS HAVE RECOMMENDED EXTENSION OF THE BAN IMPOSED BY CONGRESS IN OCTOBER AND SET TO EXPIRE TODAY THE US MILITARY IS PULLING OUT OF SEVERAL ARMY BASES IN SOUTHERN GERMANY AND ALSO THE BITBURG AIR BASE GERMAN AUTHORITIES ANNOUNCED A PENTAGON SPOKESMAN COULDN'T CONFIRM THE BASE CLOSINGS BUT US DEFENSE OFFICIALS HAD SAID THEY WERE REVIEWING EUROPEAN BASES FOR CLOSURES A SENIOR ISRAELI OFFICIAL DISAVOWED ANY PERMANENT CLAIM BY ISRAEL TO THE GOLAN HEIGHTS WHICH HE DESCRIBED AS OCCUPIED TERRITORY THE OFFICIAL'S REMARKS AT MIDEAST TALKS IN WASHINGTON WERE SEEN AS A POTENTIALLY IMPORTANT CONCILIATORY GESTURE TOWARD THE SYRIAN GOVERNMENT KHMER ROUGE COMMANDERS AGREED TO MERGE THEIR FORCES WITH THE ARMY OF CAMBODIA'S NEWLY ELECTED GOVERNMENT RAISING HOPES FOR RECONCILIATION ALSO THE REBELS SAID THEY WOULD OPEN TWO PROVINCES UNDER THEIR CONTROL TO UN PEACEKEEPERS SOUTH AFRICA BANNED FIREARMS IN THE VICINITY OF BLACKWHITE DEMOCRACY TALKS AND SAID POLICE WOULD BAR PROTEST MARCHES AT THE SITE THE GOVERNMENT HAD BEEN UNDER PRESSURE TO TAKE PREVENTIVE STEPS AFTER RIGHTWINGERS STORMED THE TALKS ON FRIDAY AZERBAIJAN'S PARLIAMENT ELECTED REBEL LEADER HUSEYNOV PRIME MINISTER DEPUTIES VOTED OVERWHELMINGLY IN FAVOR OF THE 35YEAROLD ARMY COLONEL WHO LED A REBEL ADVANCE THAT FORCED PRESIDENT ELCIBEY TO FLEE THE CAPITAL TWO WEEKS AGO 9307010064 930701 ECONOMY FUTURE OF BIG VEGETABLE GROWING AREA IN CALIFORNIA THREATENED BY SALT WATER BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL AMERICA'S SALAD BOWL IS IN DANGER OF BECOMING ENCRUSTED WITH SALT SEAWATER IS CREEPING INEXORABLY INTO THE AQUIFERS THAT WATER CALIFORNIA'S SALINAS VALLEY A LOAMY COASTAL PLAIN THAT ENCOMPASSES ABOUT 16000 ACRES OF SOME OF THE WORLD'S RICHEST FARMLAND THE VALLEY ABOUT 100 MILES SOUTH OF SAN FRANCISCO PRODUCES AS MUCH AS 75 OF THE NATION'S SUPPLY OF LETTUCE CELERY BROCCOLI AS WELL AS OTHER VEGETABLES AND FRUITS THE CROPS ARE VALUED AT ABOUT 17 BILLION ANNUALLY THE SEAWATER'S INLAND MOVE IS MAINLY DUE TO OVERPUMPING OF GROUND WATER FOR AGRICULTURE THE SEEPAGE HAS ACCELERATED IN RECENT YEARS PARTLY BECAUSE OF DROUGHT AND INCREASING POPULATION RENDERING LARGE PARTS OF SEVERAL VITAL AQUIFERS TOO SALTY FOR USE EVEN AS IRRIGATION WATER HYDROLOGISTS SAY THE SEEPAGE COULD BE SLOWED SO THAT IT POSES LITTLE LONGTERM ECONOMIC OR ENVIRONMENTAL THREAT BUT THE STEPS MANY WATER MANAGERS BELIEVE ARE NEEDED INCLUDING LIMITS ON PUMPING AND MANDATORY CONSERVATION MEASURES ARE RESISTED BY MANY FARMERS AND SOME CITY DWELLERS JUST THIS WEEK THE MONTEREY COUNTY WATER RESOURCES BOARD WHICH INCLUDES SEVERAL OF THE AREA'S LARGEST GROWERS REJECTED A PROPOSAL THAT WOULD HAVE REQUIRED A 15 PUMPING REDUCTION AMONG OTHER CONSERVATION STEPS THE RESULT GROWING NUMBERS OF AGRICULTURE AND WATER EXPERTS FEAR THAT THE SALINAS VALLEY THE SALAD BOWL OF AMERICA COULD SOMEDAY MORE RESEMBLE A DUST BOWL THE PROCESS COULD TAKE YEARS BUT IN TIME VEGETABLE PRICES COULD RISE ALTHOUGH GROWERS AND COMMUNITIES CAN STILL TAP DEEPER AQUIFERS THE COST IS IN THE MILLIONS TOO HIGH FOR MANY GROWERS AND SMALL TOWNS THE ACCUMULATION OF SALT UNDERGROUND AND IN FORMERLY FRESHWATER PONDS AND STREAMS ALSO POSES POTENTIALLY SERIOUS PROBLEMS FOR FISH AND WATERFOWL IN THE MEANTIME RAPIDLY GROWING TOWNS LIKE SALINAS POPULATION 110000 COULD SEE THEIR DRINKING WATER SUPPLIES DESTROYED BY SALT WITHIN AS FEW AS THREE OR FOUR YEARS THE SITUATION IS REAL AND IT'S GRAVE SAYS WILLIAM HURST GENERAL MANAGER OF THE MONETEREY COUNTY WATER RESOURCES AGENCY IF NOTHING HAPPENS TO SLOW THIS DOWN YOU WON'T BE ABLE TO GROW MUCH OF ANYTHING IN THIS VALLEY AND PEOPLE ARE GOING TO HAVE TO GET DRINKING WATER FROM SOMEWHERE ELSE HE SAYS BUT JUST WHERE ISN'T CLEAR SOME PARTS OF CALIFORNIA ALREADY SUFFER FROM NEARCHRONIC WATER SHORTAGES AND PIPING WATER IN FROM ELSEWHERE OR BUILDING NEW DAMS IS ENORMOUSLY EXPENSIVE SEAWATER TENDS NATURALLY TO FLOW INLAND FILLING UNDERGROUND CAVITIES AS FRESH WATER IS PUMPED OUT SALT WATER WHICH IS HEAVIER THAN FRESH WATER INFILTRATES AQUIFERS AS THE PRESSURE DROPS THE MAIN CULPRIT IN THE SALINAS VALLEY HYDROLOGISTS SAY IS AGRICULTURE'S HEAVY PUMPING OF WATER FOR IRRIGATION EVEN DURING THE SIX YEARS OF DROUGHT BETWEEN 1987 AND 1992 FARMERS USE 85 OF ALL WATER PULLED FROM THE AQUIFERS IN ESSENCE THE AREA'S WATER ACCOUNTS ARE PERPETUALLY OVERDRAWN EVEN THE HEAVY RAINS THAT BROKE CALIFORNIA'S DROUGHT THIS YEAR HAVE HELPED LITTLE BECAUSE RAIN RUNOFF SEEPS INTO THE CLAYENCASED AQUIFERS SLOWLY SALT WATER HAS NOW WRECKED ABOUT 100 WELLS IN THE VALLEY 12 WERE CLOSED LAST YEAR MOSTLY BECAUSE OF SALT SAYS U WIN A COUNTY HYDROLOGIST SEAWATER HAS MOVED MORE THAN SEVEN MILES INLAND AT SOME POINTS AS RECENTLY AS 1980 IT WAS ONLY ABOUT FOUR MILES FROM THE COAST AS IN MANY AREAS OF THE ARID WEST WHERE WATER IS AT ISSUE FIXING THE PROBLEM HAS BEEN STALLED BY DISTRUST BETWEEN FARMERS AND CITY DWELLERS BUT IN THIS CASE THE ISSUE HAS SPLIT FARMERS AS WELL THE PROBLEM IS WORSE IN THE NORTHERN END OF THE VALLEY AND MANY GROWERS IN THE SOUTHERN END DON'T WANT TO PAY TO ADDRESS A PROBLEM THAT HASN'T AFFECTED THEM MUCH YET FEW FARMERS WANT ANY LIMITS PLACED ON WATER IN MOST AREAS OF THE SALINAS VALLEY WATER ISN'T EVEN METERED AND FARMERS CAN USE AS MUCH AS THEY CAN PUMP ULTIMATELY THE STATE OR FEDERAL GOVERNMENT MAY HAVE TO IMPOSE A SOLUTION A PROSPECT UNIVERSALLY CONDEMNED BY FARMERS EVERYBODY WANTS BUSINESS AS USUAL SAYS PETER GARIN WHOSE FAMILY HAS OWNED LAND IN THE VALLEY FOR FOUR GENERATIONS THEY'RE FOOLING THEMSELVES THE TRUTH IS THE SALINAS VALLEY IS GOING TO BE CHANGED FOREVER BY THIS AND SO IS AMERICA'S PRODUCE BILL 9307010063 930701 TAIWAN PROSECUTORS CLEAR HALLIBURTON UNIT ON BRIBERY ALLEGATIONS HOUSTON TAIWANESE LAW ENFORCEMENT AUTHORITIES HAVE EXONERATED EMPLOYEES OF A HALLIBURTON CO UNIT OF INVOLVEMENT IN AN ALLEGED BRIBERY SCANDAL THE COMPANY SAID TAIWANESE GOVERNMENT PROSECUTORS OPTED NOT TO BRING BRIBERY CHARGES AGAINST THE COMPANY OR ANY OF ITS EMPLOYEES IN CONNECTION WITH THE CONSTRUCTION OF A WASTEWATER TREATMENT FACILITY THE UNIT BROWN & ROOT INTERNATIONAL INC WAS THE PRIME CONTRACTOR FOR THE FACILITY OTHER BUSINESS EXECUTIVES NOT ASSOCIATED WITH BROWN & ROOT OR HALLIBURTON WERE INDICTED THE PROSECUTORS' DECISION SUPPORTS THE RESULTS OF OUR OWN INTERNAL INVESTIGATION WHICH SHOWED THAT THE ALLEGATIONS MADE ABOUT BROWN & ROOT WERE TOTALLY GROUNDLESS THE COMPANY SAID LAST MONTH TAIWANESE OFFICIALS QUESTIONED A BROWN & ROOT EXECUTIVE AND STATERUN CHINESE PETROLEUM CORP SAID IT MIGHT CANCEL THE COMPANY'S CONTRACT FOR THE TREATMENT FACILITY A 452 BILLION TAIWAN DOLLAR US1728 MILLION PROJECT AT CHINESE PETROLEUM'S KAOHSIUNG REFINERY PROSECUTORS WERE LOOKING INTO HOW LOCAL SUBCONTRACTORS FOR THE PROJECT WERE CHOSEN IN A STATEMENT BROWN & ROOT SAID IT COMPLIED WITH CHINESE PETROLEUM'S REQUIREMENTS TO USE A TAIWANESE ENVIRONMENTAL CONTRACTOR AND TO MAXIMIZE LOCAL PARTICIPATION IN THE PROJECT WHILE BROWN & ROOT SAID SOME PRESS REPORTS HAVE SUGGESTED IT RECEIVED WINDFALL PROFITS FROM THE CONTRACT THE COMPANY SAID IN A STATEMENT THAT THE EXTENT TO WHICH THE KAOHSIUNG PROJECT WILL BE PROFITABLE AT ALL FOR BROWN & ROOT REMAINS TO BE SEEN 9307010062 930701 ECONOMY CLINTON TO UNVEIL 15 BILLION PROPOSAL TO ASSIST TIMBER REGION IN NORTHWEST BY ROSE GUTFELD AND KEVIN G SALWEN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION PLANS TO CALL FOR ROUGHLY 15 BILLION IN ASSISTANCE FOR DISPLACED WORKERS AND ECONOMIC DEVELOPMENT IN THE NORTHWEST AS PART OF ITS PLAN TO PRESERVE TIMBER LANDS FOR THE SPOTTED OWL THE SPENDING IS AN EFFORT TO REDUCE THE ECONOMIC HARDSHIP THAT WOULD RESULT FROM A SHARP DROP IN THE ANNUAL TIMBER HARVEST THE ADMINISTRATION IS EXPECTED TO SUPPORT AN ANNUAL HARVEST OF ABOUT 12 BILLION BOARDFEET OVER 10 YEARS A LOWER LEVEL THAN IN THE 1980S THE OVERALL PLAN WHICH WILL BE SUBMITTED IN ADVANCE OF A COURT DEADLINE SET BY JUDGE WILLIAM DWYER IN SEATTLE IS DESIGNED TO FULFILL PRESIDENT CLINTON'S PROMISE AT THE APRIL FOREST CONFERENCE TO PRESENT A COMPREHENSIVE PLAN THAT WILL BREAK THE LOGJAM OVER TIMBER POLICY SINCE THE FEDERAL GOVERNMENT DECLARED THE SPOTTED OWL THREATENED IN 1990 COURTS HAVE PUT MILLIONS OF ACRES OF NORTHWEST FOREST OFFLIMITS TO LOGGING THE PACKAGE ISN'T LIKELY TO PLEASE LABOR AND INDUSTRY GROUPS WHICH ARE DEMANDING HIGHER HARVEST LEVELS AND GREATER ECONOMIC ASSISTANCE NOR WILL IT PLEASE ENVIRONMENTAL ORGANIZATIONS WHICH CONTEND THAT EVEN THE REDUCED LOGGING LEVELS WILL BE TOO HIGH TO PROTECT THE THREATENED ECOSYSTEM ACCORDING TO OFFICIALS FAMILIAR WITH THE PLAN THE ADMINISTRATION INTENDS TO ASK CONGRESS FOR 333 MILLIN FOR THE FISCAL YEAR THAT STARTS OCT 1 FOR A NEW NORTHWEST ECONOMIC ADJUSTMENT FUND THE WHITE HOUSE IS EXPECTED TO SEEK ABOUT 15 BILLION OVER FIVE YEARS FOR THE FUND WHICH AIMS TO CREATE 30000 JOBS BY HELPING TO FINANCE BUSINESS DEVELOPMENT AND PLANNING WORKER RETRAINING AND ECOLOGICAL RESTORATION WORK THE PROGRAM ALSO CALLS FOR SHIFTING FUNDS INTO THE REGION UNDER THE JOB TRAINING PARTNERSHIP ACT FOR JOB SEARCH ASSISTANCE AND RETRAINING THESE FUNDS WHICH WOULDN'T REQUIRE CONGRESSIONAL APPROVAL WOULD BE INCREASED IN FISCAL 1994 TO 495 MILLION FOR THE NORTHWEST FROM 214 MILLION IN THE CURRENT YEAR THE PACKAGE IS SCHEDULED TO BE ANNOUNCED TODAY BY PRESIDENT CLINTON AND VICE PRESIDENT AL GORE AT A WHITE HOUSE BRIEFING AMONG OTHER PROVISIONS IT WILL CALL FOR TEMPORARILY SETTING ASIDE ACREAGE IN ANCIENT FOREST RESERVES SOMETHING CONSERVATION GROUPS HAVE LONG ADVOCATED TO THE DISAPPOINTMENT OF THESE GROUPS HOWEVER THE WHITE HOUSE PLANS TO ALLOW SOME SALVAGE LOGGING IN WHICH DAMAGED OR DISEASED TREES ARE CUT AND THE THINNING OF FORESTS IN THESE RESERVES THE ADMINISTRATION ISN'T EXPECTED TO ANNOUNCE PLANS TO ASK CONGRESS TO ESTABLISH RESERVES THAT WOULD BE PERMANENTLY OFFLIMITS TO LOGGING NOR ARE OFFICIALS EXPECTED TO SEEK LEGISLATION DESIGNED TO PREVENT LITIGATION BY CONSERVATION GROUPS OR OTHERS SEEKING TO THWART THE PLAN SUCH PROVISIONS ARE VIGOROUSLY SUPPORTED BY INDUSTRY GROUPS OFFICIALS SUGGESTED HOWEVER THAT THE ADMINISTRATION MIGHT SUPPORT LANGUAGE ADDRESSING THESE PROVISIONS IF THEY ARE PROPOSED IN CONGRESS THE PLAN ALSO IS EXPECTED TO CALL FOR SETTING UP A SERIES OF ZONES IN WHICH LOCAL OFFICIALS WORKERS AND OTHER INTERESTED PARTIES COULD PARTICIPATE IN DETERMINING HARVEST PLANS ENVIRONMENTAL GROUPS ARE WARY FEARING THEY WOULD HAVE LIMITED INFLUENCE IN THESE ZONES SOME EXPERIMENTAL FORESTRY OR OTHER INNOVATIONS MIGHT BE TRIED IN THESE AREAS TOO OFFICIALS CONTEND THE PACKAGE REPRESENTS A FRESH APPROACH TO FOREST MANAGEMENT IN THAT IT FOCUSES ON WATERSHED PROTECTION AND SOCALLED NEW FORESTRY TECHNIQUES WATERSHED MANAGEMENT REFERS TO RESTRICTING LOGGING ALONG STREAMS RIVERS AND DRAINAGES TO LIMIT THE SEDIMENT THAT WASHES INTO THEM LOGGINGRELATED EROSION HAS BEEN A MAJOR REASON THAT HUNDREDS OF MILES OF SALMON SPAWNING GROUNDS HAVE BEEN DESTROYED IN THE PACIFIC NORTHWEST CAUSING SALMON POPULATIONS TO PLUNGE IN RECENT YEARS NEW FORESTRY IS A CATCHALL TERM USED TO DESCRIBE A LIGHTER APPROACH TO LOGGING THAT IS SUPPOSED TO DO LESS DAMAGE TO THE FOREST AND ITS INHABITANTS IN GENERAL IT RELIES LESS ON CLEAR CUTS AND OTHER AGGRESSIVE LOGGING METHODS FAVORED BY THE TIMBER INDUSTRY AND USES MORE SELECTIVE CUTS OF A FEW TREES PER ACRE SOME PROPONENTS OF NEW FORESTRY ALSO BELIEVE THE OLDGROWTH FOREST CONDITIONS NECESSARY FOR SPECIES LIKE THE SPOTTED OWL AND MARBLED MURRELET CAN IN ESSENCE BE RECREATED BY CAREFUL CUTTING AND SHAPING OF YOUNGER TIMBERLANDS ADMINISTRATION OFFICIALS ARGUE THAT THE PLAN REPRESENTS THE BEST ALTERNATIVE POSSIBLE FOR WORKERS AND ECOSYSTEMS GIVEN THE CONSTRAINTS OF SCIENCE AND THE LAW IN THE WEEKS LEADING UP TO TODAY'S ANNOUNCEMENT THOUGH IT HAS MET WITH LITTLE BUT CRITICISM FROM INDUSTRY ENVIRONMENTALISTS AND MEMBERS OF THE NORTHWEST CONGRESSIONAL DELEGATION MICHAEL DRAPER EXECUTIVE SECRETARY OF THE WESTERN COUNCIL OF INDUSTRIAL WORKERS SAID HE WAS DISAPPOINTED THAT THE PACKAGE DOESN'T CALL FOR A FARREACHING LEGISLATIVE SOLUTION THAT WOULD ALLOW FOR ADDITIONAL LOGGING AND RESTORE MORE JOBS HE ARGUED TOO THAT THE BULK OF THE ECONOMIC ASSISTANCE PACKAGE REPRESENTS FUNDS THAT WOULD HAVE GONE TO THE REGION ANYWAY REGARDLESS OF THE OWL SITUATION I'M SOMEWHAT DESPONDENT OVER THIS PROCESS HE SAID AND I HAVE BEEN AS INVOLVED AS ANYONE JOHN B FERY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BOISE CASCADE CORP ATTACKED THE PLAN HE SAID ITS IMPACT ON THE REGIONAL ECONOMY WOULD BE DEVASTATING AND PREDICTED IT WOULD RESULT IN THE LOSS OF 47000 JOBS IN THE TIMBER INDUSTRY ALONE CHARLES MCCOY CONTRIBUTED TO THIS ARTICLE 9307010061 930701 BUSINESS BRIEF BLOCKBUSTER ENTERTAINMENT CORP VIDEO RETAILER BOOSTS STAKE IN SPELLING ENTERTAINMENT BLOCKBUSTER ENTERTAINMENT CORP FORT LAUDERDALE FLA BOOSTED ITS STAKE IN SPELLING ENTERTAINMENT INC TO ABOUT 64 FROM 54 OF SHARES OUTSTANDING RAISING THE POTENTIAL THAT THE VIDEO RETAILER MIGHT TAKE COMPLETE OWNERSHIP OF SPELLING BLOCKBUSTER ACQUIRED 49 MILLION SPELLING SHARES IN EXCHANGE FOR 167 MILLION OF ITS OWN COMMON SHARES THE COMPANY BOUGHT THE STOCK BECAUSE IT CAME AT A GOOD VALUE A SPOKESMAN SAID HE DECLINED TO COMMENT ON WHETHER THE COMPANY INTENDS TO BUY THE REST OF SPELLING THOUGH BLOCKBUSTER'S PURCHASE BRINGS IT CLOSER TO ACQUIRING THE ENTIRE COMPANY ANALYSTS SAY THERE ARE NO INDICATIONS THAT BLOCKBUSTER INTENDS TO IMMEDIATELY BUY OUT SPELLING 9307010060 930701 BUSINESS BRIEF MEDICAL INNOVATIONS INC CONCERN COMPLETES PURCHASE OF PHYSICIAN'S VISITING NURSE MEDICAL INNOVATIONS INC SAID IT COMPLETED ITS ACQUISITION OF PRIVATELY OWNED PHYSICIAN'S VISITING NURSE SERVICE INC OF BEAUMONT TEXAS THE PURCHASE IS PART OF THE COMPANY'S PUSH TO BECOME LARGER IN THE HOME HEALTHCARE MARKET THE PURCHASE PRICE INCLUDES 53 MILLION IN CASH A 1 MILLION NOTE AND ONE MILLION RESTRICTED SHARES OF THE COMPANY'S COMMON STOCK ISSUED INTO ESCROW THE CASH PORTION OF THE PURCHASE PRICE WAS PAID FOR WITH THE PROCEEDS OF A 55 MILLION LOAN OBTAINED FROM THREE INDIVIDUALS TWO OF THEM COMPANY DIRECTORS PHYSICIAN'S VISITING NURSE EXPECTS REVENUE OF ABOUT 21 MILLION AND OPERATING PROFIT OF ABOUT 1 MILLION FOR THE FISCAL YEAR ENDED YESTERDAY MEDICAL INNOVATIONS HOUSTON REPORTED REVENUE OF 32 MILLION AND NET INCOME OF 85000 FOR THE FIRST QUARTER INCLUDING THE SHARES IN ESCROW THERE ARE 10841348 COMMON SHARES OF MEDICAL INNOVATIONS OUTSTANDING IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY MEDICAL INNOVATIONS SHARES ROSE 3125 CENTS TO 166 9307010059 930701 BUSINESS BRIEF NORD RESOURCES CORP COMPANY TO SELL 50 STAKE IN UNIT TO AUSTRALIA CONCERN NORD RESOURCES CORP SAID IT AGREED TO SELL A 50 STAKE IN ITS SIERRA RUTILE LTD UNIT TO CONSOLIDATED RUTILE LTD OF BRISBANE AUSTRALIA FOR 565 MILLION THE TRANSACTION MUST BE APPROVED BY LENDERS AND WOULD ALLOW NORD TO BE SUBSTANTIALLY DEBT FREE AND TO PURSUE NEW OPPORTUNITIES NORD SAID IN A NEWS RELEASE UNDER TERMS DAYTON OHIOBASED NORD WILL RECEIVE 34 MILLION IN CASH AND 25 MILLION IN DIVIDEND PAYMENTS FROM CONSOLIDATED ALSO NORD WILL SWAP SIERRA RUTILE SHARES IN RETURN FOR 20 MILLION OF CONVERTIBLE DEBENTURES ISSUED BY NORD AND CURRENTLY HELD BY CONSOLIDATED CONSOLIDATED AND NORD WILL HAVE EQUAL REPRESENTATION ON SIERRA RUTILE'S BOARD AND CONSOLIDATED HAS THE RIGHT TO NAME A COMANAGING DIRECTOR OF THE CONCERN SIERRA RUTILE MINES RUTILE A PREMIUM TITANIUM DIOXIDE MINERAL FROM ITS BASE IN SIERRA LEONE IN WEST AFRICA NORD PRODUCES NATURAL RUTILE AND KAOLIN 9307010058 930701 BUSINESS BRIEF CLOROX CO FOURTH QUARTER MAY EXCEED RESULTS ANALYSTS ESTIMATE CLOROX CO OAKLAND CALIF SAID IT EXPECTS ITS FOURTHQUARTER RESULTS TO BE SLIGHTLY ABOVE ANALYSTS' ESTIMATES ANALYSTS HAD ESTIMATED THE CONSUMER PRODUCTS COMPANY WOULD EARN 85 CENTS A SHARE FOR THE FOURTH QUARTER ENDED JUNE 30 CLOROX SAID PERSHARE EARNINGS FOR ITS FOURTH QUARTER WILL BE ABOUT 25 HIGHER THAN THE 70 CENTS A SHARE EARNED ON AN OPERATING BASIS IN THE YEARAGO PERIOD A CHARGE PRIMARILY FROM AN ASSET WRITEDOWN BROUGHT THE YEARAGO NET INCOME TO 48 CENTS A SHARE IN THE YEARAGO PERIOD CLOROX POSTED NET INCOME OF 118 MILLION ON SALES OF 493 MILLION THE COMPANY SAID IT EXPECTS TO REPORT FOURTHQUARTER SALES WERE UP ABOUT 9 THIS YEAR IN ADDITION CLOROX SAID IT WILL RESUME ITS SHAREREPURCHASE PROGRAM THE COMPANY INTENDS TO BUY BACK ABOUT 100 MILLION OR 3 TO 4 OF ITS SHARES ON THE OPEN MARKET AS OF MARCH 31 CLOROX HAD 547 MILLION SHARES OUTSTANDING CLOROX SAID ITS PERSHARE EARNINGS FOR THE FULL YEAR WILL BE ABOUT 15 HIGHER THAN THE 265 A SHARE EARNED LAST YEAR BEFORE ONETIME CHARGES 9307010057 930701 INTERNATIONAL BRIEF FERRUZZI FINANZIARIA SPA ITALIAN COMPANY DISCLOSES FURTHER GLOOMY STATISTICS FACING A JUDICIAL INVESTIGATION AND ANGRY SHAREHOLDERS ITALY'S FERRUZZI FINANZIARIA SPA OFFERED MORE BLEAK STATISTICS AT ITS ANNUAL MEETING THE CONGLOMERATE SAID LOSSES FOR THE FIRST FIVE MONTHS OF THE YEAR AMOUNTED TO 4915 BILLION LIRE 320 MILLION IT ALSO SAID NET ASSETS WERE REDUCED TO 9933 BILLION LIRE FROM 1484 TRILLION LIRE AND THAT SHORTTERM DEBT SOARED TO SOME 46 TRILLION LIRE BY THE END OF MAY FROM 124 TRILLION LIRE AT THE END OF LAST YEAR THERE WAS NO EXPLANATION OF THE SUDDEN SHARP RISE FERRUZZI ALSO CONFIRMED THE REVISION OF ITS 1992 RESULTS TO REFLECT UNEXPECTED LOSSES AT A FOREIGN SUBSIDIARY THE COMPANY SAID ITS CONSOLIDATED LOSSES WERE REVISED TO 1667 TRILLION LIRE FROM 1519 TRILLION LIRE THE REVISION ANNOUNCED PRELIMINARILY ON MONDAY REFLECTED NEWLY DISCOVERED LOSSES AT A FOREIGN HOLDING COMPANY CONTROLLED BY ITS PRINCIPAL OPERATING SUBSIDIARY MONTEDISON SPA FERRUZZI DIDN'T ADDRESS TELEVISION REPORTS THAT MILAN PROSECUTORS HAD DISCOVERED AN ADDITIONAL HOLE OF 303 BILLION LIRE IN THE GROUP'S ACCOUNTS 9307010056 930701 BUSINESS BRIEF AMERICAN INTERNATIONAL GROUP INC EQUITY POSITIONS ARE TAKEN IN TWO BERMUDA COMPANIES AMERICAN INTERNATIONAL GROUP INC SAID IT TOOK EQUITY POSITIONS IN TWO NEW BERMUDABASED COMPANIES ONE OFFERING CATASTROPHE REINSURANCE AND ONE OFFERING EXCESS LIABILITY INSURANCE THE INTERNATIONAL INSURANCE HOLDING COMPANY SAID IT INVESTED 24 OF THE CAPITAL FOR INTERNATIONAL PROPERTY CATASTROPHE HOLDINGS LTD WHICH HAS 300 MILLION OF FULLY PAID CAPITAL A SMALL NUMBER OF DOMESTIC AND FOREIGN INVESTORS HOLD THE REMAINING EQUITY AIG ALSO SAID IT HOLDS ALMOST 24 OF THE EQUITY OF STARR EXCESS LIABILITY INSURANCE CO WHICH HAS TOTAL COMMITTED CAPITAL OF 500 MILLION INCLUDING 100 MILLION PAID STARR WILL OFFER GENERAL LIABILITY COVERAGE IN EXCESS OF 50 MILLION WITH A 100 MILLION POLICY LIMIT NEITHER COMPANY WILL OPERATE IN THE US 9307010055 930701 BUSINESS BRIEF CONNER PERIPHERALS INC LOSS IN 2ND PERIOD TO EXCEED ANALYST ESTIMATES FIRM SAYS STRUGGLING WITH PRICE CUTS AND A PHASEOUT OF OLDER PRODUCTS CONNER PERIPHERALS INC SAID IT WILL REPORT A SECONDQUARTER LOSS WIDER THAN ANALYSTS EXPECTED AND REPORT A LOSS FOR ITS THIRD QUARTER FOR THE QUARTER ENDING JUNE 30 THE ANALYSTS' CONSENSUS ESTIMATE HAD BEEN FOR THE SAN JOSE CALIF DISK DRIVE MAKER TO POST A PERSHARE LOSS OF 26 CENTS A CONNER SPOKESMAN SAID THE LOSS WILL EXCEED THAT FIGURE BUT WOULDN'T BE MORE SPECIFIC IN THE YEAREARLIER SECOND QUARTER CONNER POSTED NET INCOME OF 46 MILLION OR 77 CENTS A SHARE ON REVENUE OF 5514 MILLION THE YEARAGO NET INCLUDES A GAIN OF 43 MILLION FROM THE PARTIAL SALE OF AN EQUITY INTEREST IN A SUBSIDIARY THE DISKDRIVE MAKER BLAMES ITS WOES ON SOFT DEMAND AND FALLING PRICES AND ITS SHIFT TO NEWER PRODUCTS CONNER SAID IT IS ACCELERATING THE TRANSITION TO NEWER PRODUCTS BUT WOULDN'T BE SPECIFIC ABOUT THE TIME FRAME IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY CONNER SHARES ROSE 50 CENTS TO 975 9307010054 930701 MARKETING & MEDIA NOTED CABLETV VIACOM INC PLANS TO LAUNCH ITS VH1 AND NICK AT NITE NETWORKS IN THE UNITED KINGDOM NEXT YEAR THE EXPORT OF VIACOM'S MUSIC NETWORK AND OLDTIME TELEVISION NETWORK TO THE UK IS PART OF THE CABLE INDUSTRY'S AGGRESSIVE EXPANSION OVERSEAS NICK AT NITE WILL BE OPERATED IN A VENTURE WITH BRITISH SKY BROADCASTING LTD TERMS WEREN'T GIVEN 9307010053 930701 BUSINESS BRIEF DELHAIZE FRERES & CO LE LION SA FOOD LION PLANS OPENINGS OF 28 STORES IN THIRD PERIOD FOOD LION INC A UNIT OF DELHAIZE FRERES & CO LE LION SA SAID IT PLANS TO OPEN 28 STORES IN THE THIRD QUARTER THE SALISBURY NC SUPERMARKET CHAIN ALSO PLANS TO CLOSE EIGHT POORLY PERFORMING STORES IN THE SAME PERIOD MOST OF THE NEW STORES WILL BE OPENED IN THE SOUTHEAST THE COMPANY'S STRONGHOLD RATHER THAN THE SOUTHWEST WHERE IT CONCENTRATED MUCH OF ITS EXPANSION EFFORT IN THE PAST TWO YEARS BUT MET WITH LOWERTHANEXPECTED SALES FOOD LION THIS YEAR PLANS TO OPEN A TOTAL OF 100 STORES A SPOKESMAN SAID AFTER OPENING 131 STORES LAST YEAR THE COMPANY SCALED BACK ITS PLANS TO OPEN A SIMILAR NUMBER THIS YEAR AFTER SALES FELL FOLLOWING AN INVESTIGATIVE REPORT ON THE ABC NEWS PROGRAM PRIME TIME LIVE THAT ALLEGED THE CHAIN'S STORES SOMETIMES SOLD OUTOFDATE MEAT AND LEFT FOODHANDLING AREAS UNCLEANED 9307010052 930701 WORLD STOCK INDEX GROWS NEW YORK THREE COUNTRIES ARE BEING ADDED TO THE DOW JONES WORLD STOCK MARKET INDEX EFFECTIVE TODAY WITH THE ADDITION OF 32 COMPANIES IN BELGIUM 19 IN NEW ZEALAND AND 30 IN SPAIN THE WORLD INDEX TRACKS MARKET MOVES OF ABOUT 2500 COMPANIES IN 16 MARKETS WORLDWIDE 9307010051 930701 BUSINESS BRIEF MARCADE GROUP INC CHAPTER11 PROTECTION ENDS COMPANY TAKES NEW NAME MARCADE GROUP INC NEW YORK AN APPAREL COMPANY SAID IT EMERGED FROM CHAPTER 11 BANKRUPTCYLAW PROTECTION AND ASSUMED THE NEW NAME OF ARIS INDUSTRIES INC UNDER THE PLAN APPROVED JUNE 17 AFFILIATES OF APOLLO ADVISORS LP ACQUIRED 488 OF ARIS'S COMMON STOCK IN ADDITION ONE SHARE OF NEW ARIS COMMON STOCK IS BEING ISSUED FOR EVERY TEN SHARES OF PREVIOUSLY OUTSTANDING MARCADE STOCK SHARES WILL BE ROUNDED TO THE NEAREST WHOLE NUMBER TO AVOID ISSUANCE OF FRACTIONAL SHARES 9307010050 930701 BUSINESS BRIEF HUNTWAY PARTNERS LP ARIZONA CRUDE OIL REFINERY TO BE SHUT TEMPORARILY' HUNTWAY PARTNERS LP SAID IT PLANS TO TEMPORARILY SHUT DOWN OPERATIONS AT ITS TROUBLED CRUDE OIL REFINERY IN COOLIDGE ARIZ HUNTWAY BASED IN VALENCIA CALIF SAID IT WILL RECORD A SECONDQUARTER CHARGE OF ABOUT 66 MILLION FOR WRITEDOWNS AND OTHER COSTS ASSOCIATED WITH CLOSURE OF THE FACILITY WHICH PRODUCES LIQUID ASPHALT FOR USE IN ROAD CONSTRUCTION HUNTWAY SAID THE REFINERY'S PERFORMANCE HAS SUFFERED BECAUSE OF EXCEPTIONALLY LOW ASPHALT PRICES IN ARIZONA AND BY PROTRACTED LEGAL AND TECHNICAL COSTS RELATED TO STATE ALLEGATIONS THAT THE COMPANY VIOLATED VARIOUS ENVIRONMENTAL REQUIREMENTS HUNTWAY SAID IT HAS BEEN UNABLE TO REACH A REASONABLE SETTLEMENT THE REFINERY HAS A CAPACITY OF 8500 BARRELS A DAY HUNTWAY OPERATES TWO OTHER REFINERIES IN CALIFORNIA WITH A COMBINED CAPACITY OF ABOUT 15000 BARRELS A DAY ACCORDING TO DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE HUNTWAY SHARES CLOSED AT 1 DOWN 375 CENTS OR 273 9307010049 930701 BUSINESS BRIEF AMETECH INC COMPANY SUSPENDS TALKS TO ACQUIRE ETICAM ASSETS AMETECH INC SAID IT DECIDED TO SUSPEND EFFORTS TO ACQUIRE CERTAIN ASSETS OF ETICAMAMERICA INC A CLOSELY HELD OPERATOR OF RECYCLING FACILITIES IN RETURN FOR 18 MILLION COMMON SHARES THE OKLAHOMA CITY HAZARDOUS WASTE MANAGEMENT CONCERN SAID APRIL 13 THAT IT WOULD ACQUIRE WARWICK RIBASED ETICAM'S RECYCLING OPERATIONS IN FERNLEY NEV PERMITS AND RIGHTS RELATED TO PROJECTS IN ILLINOIS AND TEXAS AND A CONTRACT TO MANAGE AND AN OPTION TO BUY ETICAM'S RESOURCE RECOVERY OPERATION IN WARWICK WE'VE REEVALUATED SAID KERRY WILLINGHAM AMETECH'S CHIEF FINANCIAL OFFICER WHO INDICATED THAT AMETECH NOW BELIEVES THE TRANSACTION IS WORTH LESS THAN 18 MILLION OF ITS COMMON SHARES WHICH BASED ON RECENT TRADING PRICES WOULD HAVE AN INDICATED VALUE OF ABOUT 19 MILLION HE DECLINED HOWEVER TO DISCUSS DETAILS OF THE COMPANY'S REASSESSMENT AMETECH SAID TALKS WOULD BE SUSPENDED WHILE THE PARTIES CONSIDERED RESTRUCTURING THE PROPOSED TRANSACTION BUT THAT IT COULDN'T GUARANTEE WHETHER THE COMPANIES WOULD AGREE ON TERMS 9307010048 930701 INTERNATIONAL POLICE PLAN TO CORDON OFF LONDON FINANCIAL DISTRICT LONDON POLICE PLAN TO PLACE AN EXPERIMENTAL SECURITY CORDON AROUND LONDON'S CENTRAL DISTRICT IN AN ATTEMPT TO PREVENT ATTACKS BY TERRORISTS THE PLAN WHICH OFFICIALS SAID COULD GO INTO EFFECT AS EARLY AS THIS WEEKEND CALLS FOR POLICE CHECKPOINTS AT SIX MAIN ROUTES INTO THE CITY LONDON'S FINANCIAL DISTRICT MINOR ENTRY ROUTES WILL BE CLOSED AUTHORITIES WOULD HAVE THE RIGHT TO SEARCH VEHICLES AT THE CHECKPOINTS THE MOVE IS IN RESPONSE TO THE APRIL 24 BOMBING OF THE BISHOPSGATE AREA IN THE BANKING DISTRICT THE IRISH REPUBLICAN ARMY IS BELIEVED RESPONSIBLE FOR THE BOMB CONCEALED IN A STOLEN TRUCK THAT KILLED A NEWS PHOTOGRAPHER AND INJURED DOZENS THE IRA CLAIMED RESPONSIBILITY FOR AN EARLIER BOMB ATTACK ON THE BALTIC EXCHANGE BUILDING THAT KILLED THREE PEOPLE AND INJURED 91 IN THE WAKE OF THE ATTACKS SEVERAL FINANCIAL INSTITUTIONS HAVE SOUGHT MORE STRINGENT SECURITY POLICE SAID THAT IF THE TEMPORARY PROGRAM GOES SMOOTHLY THEY MIGHT SEEK PERMANENT STOPANDSEARCH POWERS BLOCKING ALL BUT A FEW MAIN ROUTES INTO THE CITY OTHER NEW PRECAUTIONS ARE ALREADY IN EFFECT EXTRA POLICE PATROL THE DISTRICT AND WORKERS ARE REMOVING LITTER BINS A HIDING PLACE FOR PREVIOUS IRA BOMBS LIMITED STOPANDSEARCH PATROLS ARE ALSO IN FORCE 9307010047 930701 BUSINESS BRIEF RAMSAY HEALTH CARE INC PREVIOUSLY ANNOUNCED PLAN TO RECAPITALIZE IS FINISHED RAMSAY HEALTH CARE INC NEW ORLEANS SAID IT COMPLETED ITS PREVIOUSLY ANNOUNCED RECAPITALIZATION OF INTERESTS CONTROLLED BY CHAIRMAN PAUL RAMSAY THE MOVE ELIMINATES PREFERENTIAL VOTING RIGHTS HELD BY THE RAMSAY INTERESTS AND PROVIDES THE COMPANY WITH 500000 IN NEW EQUITY THE VOTING POWER OF MR RAMSAY'S INTERESTS WILL SLIP TO 30 FROM 41 WHILE THEIR EQUITY STAKE WILL INCREASE TO ABOUT 30 SPECIFICALLY THE COMPANY ISSUED 142486 SHARES OF A NEW SERIES OF CONVERTIBLE PREFERRED STOCK IN EXCHANGE FOR A 2 MILLION 161 SUBORDINATED PROMISSORY NOTE AND 500000 IN CASH AND ALL SHARES OUTSTANDING OF THE COMPANY'S CLASS B PREFERRED STOCK THE NEW PREFERRED STOCK HAS 10 VOTES PER SHARE AND IS CONVERTIBLE AT THE OPTION OF THE HOLDER INTO 10 SHARES OF THE COMPANY'S COMMON THE NEW SERIES PAYS A 5 DIVIDEND HAS A LIQUIDATION PREFERENCE OF 5084 AND IS REDEEMABLE AT THE OPTION OF THIS OPERATOR OF PSYCHIATRIC CARE HOSPITALS 9307010046 930701 WHO'S NEWS SON OF DART GROUP'S HAFT OUSTED FROM CROWN BOARD LANDOVER MD DART GROUP CORP CHAIRMAN HERBERT HAFT FORMALLY OUSTED HIS SON ROBERT FROM THE BOARD OF DARTCONTROLLED CROWN BOOKS CORP BUT DIDN'T MAKE AN APPEARANCE AT CROWN'S ANNUAL MEETING IN A MEETING RUSHED THROUGH BY CROWN CHIEF EXECUTIVE GLENN HEMMERLE CROWN ELECTED A NEW SLATE OF DIRECTORS BACKED BY HERBERT HAFT THE COMPANY OF WHICH THE YOUNGER MR HAFT HAD BEEN CHAIRMAN TECHNICALLY DIDN'T PROPOSE ITS OWN SLATE MR HEMMERLE WAS THE ONLY CROWN DIRECTOR TO APPEAR MINUTES LATER AT DARTCONTROLLED TRAK AUTO CORP'S ANNUAL MEETING A SIMILAR OUTCOME OCCURRED WHEN A SLATE ALSO SPONSORED BY HERBERT HAFT WAS ELECTED THE ELDER MR HAFT IS TRAK AUTO'S CHAIRMAN THE OFFICIAL OUSTER OF ROBERT HAFT IS THE LATEST DRAMA IN THE FATHERSON SUCCESSION BATTLE WHICH ERUPTED AFTER THE ELDER MR HAFT WHO OWNS 57 OF DART'S VOTING SHARES CHANGED HIS MIND ABOUT TURNING DART OVER TO HIS 40YEAROLD SON WHO IS ALSO DART'S PRESIDENT AS THE DISPUTE ESCALATED IN RECENT WEEKS AND DIRECTORS BEGAN SIDING WITH ROBERT THE 72YEAROLD MR HAFT OUSTED HIS WIFE GLORIA AND ROBERT FROM DART'S BOARD AND PROPOSED NEW DIRECTORS FOR BOTH CROWN AND TRAK AUTO 9307010045 930701 PROBE IS STEPPED UP OF POSSIBLE DEFECTS IN GM FUEL LINES BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL GOVERNMENT STEPPED UP ITS INVESTIGATION OF A POSSIBLE FUELLINE DEFECT THAT MAY CAUSE FUEL LEAKS IN CERTAIN RECENTMODEL GENERAL MOTORS CORP CARS EARLIER THIS YEAR THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION CONDUCTED A PRELIMINARY EVALUATION AIDED BY GM OF THE 1991 BUICK PARK AVENUE CADILLAC DEVILLE AND FLEETWOOD AND OLDSMOBILE 98 AS WELL AS THE 1992 BUICK LESABRE OLDSMOBILE 88 AND PONTIAC BONNEVILLE THE NHTSA'S INITIAL PROBE STARTED AFTER SOME CONSUMERS PHONED THE CAR SAFETY AGENCY'S HOTLINE THE NHTSA AND GM KNOW OF 13 COMPLAINTS INCLUDING TWO FIRES AND ONE INJURY OF FUEL LINES DRAGGING ON THE ROAD AND TRIGGERING FUEL LEAKS AS A RESULT THE NHTSA HAS CONCLUDED IT WILL NEED TO STUDY THE VEHICLES IN GREATER DEPTH THE NEW INVESTIGATION KNOWN AS AN ENGINEERING ANALYSIS WILL PROCEED UNTIL THE AGENCY ASSESSES WHETHER A DEFECT EXISTS THE ANALYSIS COULD LEAD TO A RECALL OF THE CARS THE INQUIRY IS UNRELATED TO THE GOVERNMENT'S ATTEMPT TO FORCE A RECALL OF GM PICKUP TRUCKS WITH SIDEMOUNTED GASOLINE TANKS A GM SPOKESWOMAN SAID THAT WE'RE COOPERATING WITH NHTSA AND ITS INVESTIGATION SHE ADDED THAT GM HAS LAUNCHED ITS OWN SURVEY OF A POSSIBLE FUELLINE PROBLEM IN THE CARS THERE ARE 307760 SUCH VEHICLES ON THE ROAD THE SAFETY AGENCY ALSO UPGRADED ITS STUDY OF POSSIBLE GASOLINETANK LEAKS IN 19891990 WINNEBAGO RECREATIONAL VEHICLES THE NHTSA IS AWARE OF 52 COMPLAINTS OF GAS TANK LEAKS NONE OF WHICH RESULTED IN A FIRE OR INJURY THE AGENCY SAID 12367 SUCH VEHICLES WERE MADE BY WINNEBAGO INDUSTRIES INC BASED IN FOREST CITY IOWA THE COMPANY COULDN'T BE REACHED TO COMMENT THE NHTSA ALSO DECIDED TO EXAMINE FURTHER REPORTS OF STICKING THROTTLES IN SOME CHEVROLET CAPRICES A MODEL OF GM BASED IN DETROIT THE AGENCY HAS RECEIVED 14 COMPLAINTS INCLUDING THREE ACCIDENTS INVOLVING NINE INJURIES AND ONE DEATH ABOUT 198990 CAPRICES WITH 43LITER ENGINES ABOUT 9400 SUCH CARS ARE STILL ON THE ROAD A STICKING THROTTLE CAN CAUSE A CAR TO INCREASE OR MAINTAIN ITS SPEED EVEN WHEN THE DRIVER LETS OFF THE ACCELERATOR 9307010044 930701 GRAND UNION BANK COVENANT WAYNE NJ GRAND UNION CO SAID IT REACHED AN AGREEMENT WITH ITS BANKS TO EXCLUDE THE COSTS OF A RECENT STRIKE FROM CERTAIN FINANCIAL COVENANTS INVOLVING ITS 139 MILLION CREDIT FACILITY PREVIOUSLY THE CLOSELY HELD SUPERMARKET CHAIN HAD SAID THE LABOR DISPUTE IN MAY COST THE COMPANY BETWEEN 6 MILLION AND 8 MILLION IN LOST REVENUE AND EXPENSES FOLLOWING THE EXCEPTIONS MADE FOR COSTS ASSOCIATED WITH THE STRIKE THE COMPANY SAID IT IS IN COMPLIANCE WITH ALL TERMS OF ITS DEBT AGREEMENTS 9307010043 930701 EMPIRE BLUE CROSS EXHEAD DENIES CHARGES OVER BOOKS WASHINGTON THE FORMER HEAD OF EMPIRE BLUE CROSS AND BLUE SHIELD DENIED ALLEGATIONS THE COMPANY KEPT TWO SETS OF BOOKS TO MISLEAD STATE GOVERNMENT OFFICIALS AND BLAMED EMPIRE'S LOSSES ON THE INSURANCE INDUSTRY'S LACK OF A LEVEL PLAYING FIELD INTERNAL FINANCIAL STATEMENTS WERE PREPARED MONTHLY AND MAY BE REVISED LATER AS THE NUMBER OF CLAIMS CHANGE FORMER EMPIRE CHAIRMAN ALBERT CARDONE TOLD THE SENATE PERMANENT SUBCOMMITTEE ON INVESTIGATIONS NEW YORK CITYBASED EMPIRE IS THE US'S LARGEST NONPROFIT HEALTH INSURER THERE IS NO MYSTERY OR SLEIGHT OF HAND HERE THE INTERNAL FINANCIAL STATEMENTS OR BLACK BOOKS' ARE ONE PART OF A CONTINUUM A SINGLE PROCESS OF DEVELOPING DATA OVER A PERIOD OF TIME MR CARDONE SAID THIS PAST FRIDAY TWO FORMER EMPIRE EMPLOYEES TOLD THE SUBCOMMITTEE OF THEIR DISCOVERY OF A BLACK BOOK THAT CONTAINED ACCOUNT FIGURES DIFFERENT FROM THOSE PREPARED BY THE COMPANY'S ACTUARIAL DEPARTMENT CHIEF FINANCIAL OFFICER JERRY WEISSMAN TESTIFIED THAT THE NUMBERS HE HAS PROVIDED TO THE NEW YORK STATE DEPARTMENT OF INSURANCE WERE EITHER ACCURATE AND CORRECT OR A REASONABLE ESTIMATION OF CLAIMS THAT HAD BEEN INCURRED BUT NOT YET REPORTED TO THE INSURANCE COMPANY 9307010042 930701 MISSISSIPPI RIVER HAS YET MORE MAYHEM TO UNCORK IN IOWA ILLINOIS AT WEEKEND BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL THE MISSISSIPPI RIVER ALREADY STRANDING MARINE TRAFFIC AND WREAKING ECONOMIC HAVOC FOR HUNDREDS OF MILES HAS STILL MORE MAYHEM TO DELIVER THIS WEEKEND THE NATION'S MIGHTIEST WATERWAY IS EXPECTED TO SPILL OVER AT RECORD LEVELS WHERE IT SEPARATES IOWA AND ILLINOIS THE US ARMY CORPS OF ENGINEERS SAID WATER IS EXPECTED TO CREST AT 7 1/2 FEET ABOVE FLOOD STAGE AT DAVENPORT IOWA SATURDAY AND MAKE SUNDAY A SOGGY FOURTH OF JULY FOR MUSCATINE AND BURLINGTON IOWA AND KEITHSBURG ILL WE'VE GOT WATER BACKED UP ALL THE WAY TO DUBUQUE AND MORE RAIN IS IN THE FORECAST SAID CORPS SPOKESWOMAN DENISE YALE FROM AN OFFICE ON AN ISLAND IN THE MISSISSIPPI THUS AFTER THE RIVER CRESTS IT COULD TAKE PERHAPS TWO WEEKS FOR WATER TO DROP TO LEVELS WHERE LOCKS CAN REOPEN AND BARGE TRAFFIC GET UNDER WAY YET WHILE THE FLOOD THE THIRD THIS YEAR HAS COST RIVERSIDE BUSINESSES MANY MILLIONS OF DOLLARS EXPERTS SAY IT COULD HAVE BEEN WORSE THIS IS A SLACK TIME FOR GRAIN SHIPMENTS ON THE RIVER HAD FLOODS ARRIVED DURING HARVEST FARMERS AND THE GRAIN TRADE COULD HAVE FACED A MONUMENTAL DISASTER MOREOVER WHILE THE MISSISSIPPI IS CLOSED FROM ST PAUL TO ST LOUIS GRAIN IS MOVING DOWN THE OHIO AND ILLINOIS RIVERS TO FULFILL EXPORT DEMANDS AND KEEP DOWNSTREAM BARGES BUSY BUT SOME EXPORTERS SAID THEY ARE SCRAMBLING TO FIND ALTERNATE SOURCES OF GRAIN TO MEET CONTRACTUAL OBLIGATIONS THE FLOODING IS PLAYING FAVORITES AMONG FARMERS BECAUSE THE MISSISSIPPI IS THEIR PRIMARY WATERWAY FOR EXPORTS IOWA CORN GROWERS HAVE BEEN HIT HARDEST BUT THOSE IN ILLINOIS INDIANA AND OHIO ARE BENEFITTING BECAUSE OTHER RIVERS ARE OPEN TO BARGE TRAFFIC THIS DOES SHIFT FORTUNES A BIT SAID PHILLIP BAUMEL AN IOWA STATE UNIVERSITY AGRICULTURE PROFESSOR AND GRAINTRANSPORTATION SPECIALIST NOTING THAT FARMERS EAST OF THE MISSISSIPPI ARE FLOOD BENEFICIARIES SO FAR BECAUSE IOWA PROCESSORS FIND THEMSELVES WITH A GLUT OF CORN THEIR PRICES ARE DROPPING DELIVERING A DOUBLE WHAMMY TO GROWERS HE SAID AT THE PEAVEY CO GRAIN ELEVATOR IN SOUTH ST PAUL MINN BUSINESS HAS BEEN SLACK BECAUSE CORN PRICES HAVEN'T BEEN HIGH ENOUGH TO ENTICE THE FARMER TO SELL SAID BRUCE COLTVET MANAGER OF THE FACILITY OWNED BY CONAGRA INC IT LOADED ITS FIRST BARGE IN SEVERAL DAYS YESTERDAY AFTER REINSTALLING ELECTRICAL MOTORS AT THE TERMINAL PRICE PREMIUMS ALSO ARE AS YET TOO LOW TO DIVERT MUCH GRAIN TO SHIPMENT BY RAIL CP RAIL SYSTEM WHICH OPERATES TRAINS ALONG THE RIVER SAID THAT OVERALL GRAIN VOLUMES HAVE CHANGED LITTLE A LOT OF WORK IS GOING ON TO DETOUR GRAIN AROUND AREAS WHERE THERE IS WATER BUT NET CARLOADINGS AREN'T UP A MINNEAPOLISBASED SPOKESMAN SAID WHILE THE RIVER CONTINUES TO RISE BARGE OPERATORS ARE FRUSTRATED ALL YOU DO IS FIND SAFE PLACES TO PUT YOUR EQUIPMENT AND WAIT IT OUT SAID CLINT ODELL PRESIDENT OF CARGO CARRIERS THE BARGE OPERATION OF GRAIN GIANT CARGILL INC BASED IN MINNETONKA MINN ABOUT 40 OF ITS 682BARGE FLEET IS IDLED AND MANY OF THOSE VESSELS ARE LOADED WITH SOUTHBOUND GRAIN BUT THE BARGES HAVE GLASSFIBER COVERS WHICH PROTECT THE GRAIN MR ODELL WOULDN'T PUT A DOLLAR ESTIMATE ON POTENTIAL LOSSES OTHER THAN TO ACKNOWLEDGE IT HURTS EVEN IF RATES REBOUND WHEN THE RIVER REOPENS I DON'T SEE HOW YOU RECOVER TOTALLY FROM THIS HE SAID TYPICALLY BARGE OPERATORS AREN'T INSURED FOR SUCH LOSSES IF THE MISSISSIPPI REMAINS CLOSED BEYOND WHAT'S NOW EXPECTED SOME BARGE OPERATORS SEE AN OMINOUS SCENARIO OVER TIME THERE WON'T BE ANYTHING FOR LOWER RIVER BOATS TO HAUL SOUTH TO NEW ORLEANS SAID TERRY BECKER PRESIDENT OF RIVERWAY CO A MINNEAPOLISBASED BARGE OPERATOR AS MORE AND MORE BOATS GET TIED OFF SOONER OR LATER THE ENTIRE MACHINE SHUTS DOWN IT'S TOO EARLY TO QUANTIFY TOTAL FLOODRELATED COSTS BESIDES REVENUES LOST TO FARMERS BARGE OPERATORS ELEVATORS AND THE HUNDREDS OF BUSINESSES ALONG THE RIVER THERE WILL BE THE COST OF REPAIRING ELECTRICAL EQUIPMENT REMOVED FROM GRAIN TERMINALS AND WIDESPREAD CLEANUP OF DEBRIS THE IMPACT ISN'T SIGNIFICANT YET SAID ROBERT KIELBAS A VICE PRESIDENT AT INTERCARGO CORP A CHICAGOBASED SHIPPING UNDERWRITER I DON'T THINK IT'S GOING TO BE DEVASTATING THAT'S LITTLE CONSOLATION TO BUDDY COMPTON A PORT CAPTAIN IDLED AT ST LOUIS WE JUST DON'T KNOW HOW LONG WE'RE GOING TO BE SHUT DOWN HE SAID IT KEEPS RAINING THE RIVER KEEPS RISING 9307010041 930701 WHO'S NEWS SUZUKI TAPS NAKANO AS CHAIRMAN OF LINES IN NORTH AMERICA BREA CALIF SUZUKI MOTOR CORP NAMED SOKICHI NAKANO CHAIRMAN OF AMERICAN SUZUKI MOTOR CORP THE COMPANY'S NORTH AMERICAN OPERATIONS HE SUCCEEDS KENJII SHIMIZU WHO HAS RETURNED TO JAPAN FOR AN ASSIGNMENT THAT HASN'T YET BEEN DETERMINED THE AUTO MAKER SAID MR NAKANO IS A BOARD MEMBER OF SUZUKI MOTOR IN JAPAN HE JOINED THE COMPANY IN 1963 AND SERVED AS A MEMBER OF THE MANAGEMENT TEAM THAT ESTABLISHED THE CANADIAN AUTOMOTIVE MANUFACTURING INC FACTORY IN INGERSOLL ONTARIO YOSHINORI FUJII CURRENTLY EXECUTIVE VICE PRESIDENT OF AMERICAN SUZUKI WAS NAMED PRESIDENT EFFECTIVE TODAY MR FUJII 54 YEARS OLD JOINED THE AUTO MAKER IN JAPAN IN 1962 MR FUJII SUCCEEDS MR SHIMIZU WHO WAS ALSO PRESIDENT OF SUZUKI'S US OPERATIONS MASAO NAGURA CURRENTLY ASSISTANT TO THE PRESIDENT WILL ASSUME THE RESPONSIBILITIES OF EXECUTIVE VICE PRESIDENT MEANWHILE GARY ANDERSON NOW MARKETING DIRECTOR WAS NAMED VICE PRESIDENT SALES AND MARKETING AUTOMOTIVE DIVISION 9307010040 930701 BUSINESS BRIEF INTERTAN INC RETAILER INDICATES SURVIVAL DEPENDS ON TANDY BANKS INTERTAN INC SAID IT MAY HAVE TO GO OUT OF BUSINESS IF IT CAN'T RESOLVE PROBLEMS WITH ITS BANKS AND TANDY CORP THE BARRIE ONTARIO CONSUMER ELECTRONICS RETAILER IS IN DEFAULT ON AN AGREEMENT WITH ITS BANKING SYNDICATE AND ALSO ON ITS LICENSING PACT WITH TANDY FOR WHICH IT IS THE INTERNATIONAL RETAILER THE COMPANY SAID THAT CONTINUATION OR REFINANCING OF INTERTAN'S EXISTING BANK FINANCING AND MAINTAINING EXISTING CREDIT TERMS WITH TANDY ARE ESSENTIAL TO ENSURING THE ONGOING OPERATION OF INTERTAN'S BUSINESS INTERTAN SAID A STANDSTILL AGREEMENT WITH THE BANKS EXPIRED YESTERDAY WHICH WOULD FREE THEM TO SUE THE COMPANY BUT THAT IT HAD SCHEDULED A MEETING WITH THE BANKS ON JULY 7 IT SAID TALKS ALSO ARE CONTINUING WITH TANDY AND WITH POSSIBLE LENDERS INTERTAN WAS SPUN OFF BY TANDY WHICH IS BASED IN FORT WORTH TEXAS IN 1986 ITS SHARES TRADED ABOVE 20 UNTIL IT ANNOUNCED LAST YEAR THAT IT WAS IN TECHNICAL DEFAULT ON ITS BORROWINGS THEY CLOSED YESTERDAY AT 8625 UP 125 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9307010039 930701 BUSINESS BRIEFS PROCTER & GAMBLE CO WILL BUY THE ASSETS OF LIC HYGIEN A SCANDINAVIAN PROVIDER OF ADULT INCONTINENCE AND OTHER DISPOSABLE HEALTHCARE PRODUCTS TERMS WEREN'T DISCLOSED EQUITABLE RESOURCES INC ACQUIRED LOUISIANA INTRASTATE GAS CO FROM ARKLA INC FOR 191 MILLION MA HANNA CO A SPECIALTY CHEMICALS COMPANY ACQUIRED TEXAPOL CORP BETHLEHEM PA AND CERTAIN ASSETS OF MONMOUTH PLASTICS ASBURY PARK NJ TERMS WEREN'T DISCLOSED SHELL OIL CO A UNIT OF THE ROYAL DUTCH/SHELL GROUP PURCHASED 24 BRITISH PETROLEUM SERVICE STATIONS IN SOUTHEAST FLORIDA TERMS WEREN'T DISCLOSED HUGHES SUPPLY INC AGREED TO ACQUIRE ELECTRICAL DISTRIBUTORS INC ATLANTA GA FOR 375000 SHARES OF HUGHES STOCK VALUED AT 59 MILLION BDM INTERNATIONAL INC SAID A SUBSIDIARY SIGNED AN 184 MILLION CONTRACT INCLUDING OPTIONS TO DEVELOP A COMPUTER SYSTEM FOR KUWAIT'S PUBLIC AUTHORITY FOR MINORS AFFAIRS 9307010038 930701 MARKETSCAN CEREAL FIRMS MAKE A PITCH TO SNACKERS BY KATHLEEN DEVENY PUT AWAY THE POPCORN FORGET THE POTATO CHIPS IT'S TIME FOR A HANDFUL OF CEREAL SO DECLARE SOME OF THE NATION'S MOST POWERFUL MARKETERS WHO ARE HOPING THEY CAN COAX AMERICANS TO CURL UP IN FRONT OF THE TELEVISION SET WITH A NEW TYPE OF SNACK CORN FLAKES SAY OR GRANOLA TO HELP KEEP SALES GROWING AT A TIME WHEN HEFTY PRICE INCREASES SEEM UNLIKELY CEREAL MARKETERS ARE SCRAMBLING TO CONVINCE CONSUMERS THAT THEIR PRODUCT ISN'T JUST A BREAKFAST FOOD A PRINT AD FOR RALSTON PURINA CO'S COOKIECRISP FOR EXAMPLE FEATURES A BOY POPPING THE SUGARY NUGGETS INTO HIS MOUTH WHILE HE PORES OVER HIS HOMEWORK BOXES OF KELLOGG CO'S CRACKLIN' OAT BRAN BOAST THE CEREAL TASTES LIKE OATMEAL COOKIES AND MAKES A GREAT SNACK ANYTIME AND COMMERCIALS FOR QUAKER OATS CO'S 100 NATURAL CEREAL HAVE ADVISED GRABBING A HANDFUL STRAIGHT FROM THE BOX ALL OF THE MAJOR MARKETERS ARE WORKING ON STRATEGIES TO ENCOURAGE SNACKING ON CEREAL SAYS GARY STIBEL A PRINCIPAL WITH NEW ENGLAND CONSULTING GROUP IN WESTPORT CONN BUT TO REALLY WIN IN THIS MARKET CEREAL MARKETERS WILL HAVE TO CREATE MORE SNACKABLE PRODUCTS GENERAL MILLS INC THE NATION'S NO 2 CEREAL MAKER AFTER KELLOGG HAS SET OUT TO DO JUST THAT THE MINNEAPOLISBASED COMPANY IS ROLLING OUT NATIONALLY A CEREAL EXPRESSLY MADE TO BE CONSUMED SANS MILK AND SPOON CALLED FINGOS THE SWEETENED OVERSIZE FLAKES LOOK SOMETHING LIKE CORN CHIPS AND ARE ADVERTISED AS THE CEREAL MEANT TO EAT WITH YOUR FINGERS TO GET THAT MESSAGE TO CONSUMERS THE COMPANY IS BACKING FINGOS WITH A 34 MILLION MARKETING PROGRAM THERE IS NO LARGER OPPORTUNITY FOR GROWTH IN THE CEREAL CATEGORY THAN TO GET PEOPLE TO EAT IT AT OTHER TIMES OF THE DAY SAYS BARRY DAVIS MARKETING MANAGER FOR FINGOS AT GENERAL MILLS WE'VE MADE CEREAL MORE CONVENIENT BUT CONVINCING CONSUMERS TO TUCK A BAG OF OATS IN THEIR BRIEFCASES OR GIVE A HANDFUL OF WHEAT SQUARES TO THEIR KIDS AS AN AFTERSCHOOL SNACK MAY NOT BE AN EASY SELL MARKETING CONSULTANTS SAY CHANGES IN CONSUMERS' EATING PATTERNS TYPICALLY OCCUR VERY SLOWLY AND THE SNACKFOOD STRATEGY PITS CEREAL MAKERS SQUARELY AGAINST SOME OF THE NATION'S TOP MARKETERS INCLUDING PEPSICO INC'S FRITOLAY DIVISION AND ANHEUSERBUSCH COS' EAGLE SNACKS WHAT'S MORE RALSTON HAS BEEN ENCOURAGING CONSUMERS TO WHIP UP A BATCH OF CHEX PARTY MIX THAT VENERABLE CONCOCTION OF SEASONED CEREAL SQUARES PEANUTS AND PRETZELS SINCE THE 1950S AND GENERAL MILLS HAS BEEN PITCHING CHEERIOS AS JUNIOR'S FIRST FINGER FOOD TO PARENTS FOR NEARLY TWO DECADES YET MARKETERS CONCEDE THAT MORE THAN 90 OF ALL CEREAL IS STILL CONSUMED AT BREAKFAST AND LESS THAN 3 IS CONSUMED DIRECTLY FROM THE BOX INDEED THE RECENT RESULTS OF BRANDS PROMOTED AS SNACKS ARE DECIDEDLY MIXED SALES OF KELLOGG'S CRACKLIN' OAT BRAN FOR EXAMPLE DECLINED 102 TO 755 MILLION DURING THE 52 WEEKS ENDED MAY 23 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE SALES OF GENERAL MILLS' CHEERIOS MEANWHILE CLIMBED 34 TO 7269 MILLION BUT KELLOGG'S RICE KRISPIES TREATS CEREAL LAUNCHED IN JANUARY RANG UP SALES OF 275 MILLION SALES OF FINGOS WHICH HAS BEEN TEST MARKETED IN SUPERMARKETS IN THE EASTERN US WERE 17 MILLION CERTAINLY SNACKING ACCOUNTS FOR A SMALL SEGMENT OF MANY BRANDS' SALES BECAUSE THE PRIZE FOR CAPTURING A BIGGER PORTION OF THE CEREAL BUSINESS IS SO LARGE MARKETERS HAVE PLENTY OF INCENTIVE TO PERFECT THE PITCH INFORMATION RESOURCES WHICH IS BASED IN CHICAGO REPORTS SUPERMARKET SALES OF CEREALS GREW 54 DURING THE 52WEEK PERIOD TO 77 BILLION BUT FUTURE SALES GROWTH MAY BE DIFFICULT AS PENNYPINCHING CONSUMERS MAKE PRICE INCREASES DIFFICULT AND PRIVATELABEL RIVALS CONTINUE TO PUSH INTO THE CATEGORY DURING THE MOST RECENT 12WEEK PERIOD SALES GROWTH SLOWED TO 47 AND POUND VOLUME INCHED UP ONLY 2 COMPARED WITH THE YEAREARLIER PERIOD ONE OF THE REASONS YOU'RE SEEING SO MUCH PRODUCT INNOVATION IN THE CATEGORY IS THAT PRIVATE LABEL REMAINS AN ISSUE SAYS JOHN MCMILLIN A FOOD ANALYST WITH PRUDENTIAL SECURITIES INC THE JURY IS STILL OUT ON WHETHER FINGOS WILL WORK BUT IT'S A VERY INNOVATIVE IDEA GENERAL MILLS HAS SOME REASON TO BE OPTIMISTIC ABOUT THE FINGERFOOD CONCEPT ALTHOUGH CEREAL ACCOUNTS FOR ONLY A TINY SEGMENT OF SNACKS ITS CONSUMPTION AS SUCH HAS GROWN OVER THE PAST 10 YEARS ACCORDING TO DAVE JENKINS A VICE PRESIDENT AT NPD GROUP A CHICAGO COMPANY THAT TRACKS EATING HABITS AND THE SNACK MARKET IS SUBSTANTIAL AMERICANS ON AVERAGE CONSUME 200 SNACKS ANNUALLY COMPARED WITH 300 OR SO BREAKFASTS MR JENKINS SAYS FINGOS' MARKETING MANAGER MR DAVIS SAYS THE COMPANY ORIGINALLY CONCEIVED THE NEW PRODUCT AS A PORTABLE MEAL FOR BREAKFAST SKIPPERS BUT FOUND THAT PEOPLE WERE FREQUENTLY CONSUMING IT AT OTHER TIMES OF THE DAY NEARLY 80 OF THE PRODUCT WHICH IS SOLD IN BULK AS WELL AS SINGLESERVING PACKAGES IS CONSUMED IN THE AFTERNOON OR EVENING MR DAVIS SAYS GENERAL MILLS IS COUNTING ON CEREAL'S RELATIVELY HEALTHFUL IMAGE TO GIVE FINGOS AN EDGE OVER MORE TRADITIONAL SALTYSNACK PRODUCTS TO EMPHASIZE THE DISTINCTION THE COMPANY STUDIOUSLY AVOIDS REFERRING TO FINGOS AS A SNACK FOOD AND STOCKS IT ALONG WITH OTHER CEREALS ON SUPERMARKET SHELVES YET THE PRODUCT HAS ALSO HELPED GENERAL MILLS EXPAND INTO RETAIL CHANNELS THAT DON'T TYPICALLY SELL CEREALS SUCH AS WALMART OUTLETS AND WOOLWORTH STORES COMING NEXT VERSIONS DESIGNED FOR SALE IN VENDING MACHINES AND IN CONVENIENCE STORES WE DON'T USE THE WORD SNACK' WITH FINGOS BECAUSE WE FOUND THERE WAS SOME CONFUSION AMONG CONSUMERS SAYS MR DAVIS BUT THEN WE HIT ON THE CONCEPT OF A CEREAL YOU EAT WITH YOUR FINGERS AND THEY SEEM TO UNDERSTAND THAT TO COAX CONSUMERS TO EAT MORE CEREAL MARKETERS ARE PUSHING NEW BRANDS SUCH AS FINGOS THAT ARE DESIGNED TO BE SNACKS OLDER BRANDS INCLUDING COOKIECRISP AND CRACKLIN' OAT BRAN ARE BEING PROMOTED AS FINGER FOODS 9307010037 930701 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 6 HIGH 3 3/8 LOW 4 NEAR CLOSING BID 5 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 315 7 TO 50 DAYS 317 51 TO 97 DAYS 322 98 TO 119 DAYS 324 120 TO 209 DAYS 340 210 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 320 30 DAYS 325 60 DAYS 327 90 DAYS CERTIFICATES OF DEPOSIT 262 ONE MONTH 267 TWO MONTHS 273 THREE MONTHS 293 SIX MONTHS 310 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 333 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 307 60 DAYS 311 90 DAYS 316 120 DAYS 319 150 DAYS 326 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 5/16 3 3/16 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 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 MONDAY JUNE 28 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 305 13 WEEKS 314 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 700 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 696 60 DAYS 706 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 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 9307010036 930701 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN EVEN THOUGH ITS ECONOMY GREW 61 LAST YEAR AND COULD EXPAND 63 THIS YEAR TAIWAN'S RULING PARTY APPROVED A THREEYEAR ECONOMIC STIMULUS PACKAGE THE PLAN EFFECTIVE UPON CABINET APPROVAL EXPECTED TODAY IS INTENDED TO POSITION TAIWAN AS AN ASIANPACIFIC OPERATIONS CENTER FOR MULTINATIONAL COMPANIES THE PACKAGE AIMS FOR ANNUAL INCREASES OF 6 TO 7 IN GROSS DOMESTIC PRODUCT AND 10 TO 15 IN PRIVATE INVESTMENT IN THE PAST FIVE YEARS TAIWAN'S FIXED INVESTMENT SLID TO AN AVERAGE OF 22 OF GDP FROM 30 LEVELS WHICH REGIONAL NEIGHBORS MAINTAINED AND PRIVATE INVESTMENT GREW AT AN 85 AVERAGE ANNUAL PACE UNDER THE PLAN THE GOVERNMENT WILL LEASE STATE LAND GIVE FIVEYEAR TAX EXEMPTIONS AND OFFER CASH INCENTIVES FOR HIGHTECH INVESTMENTS HELP RECRUIT AND TRAIN FOREIGNERS TO EASE A LABOR SHORTAGE OFFER LOANS TO SMALL AND MEDIUMSIZED BUSINESSES GET TECHNICAL EXPERTISE FROM CHINA ACCELERATE PRIVATIZATIONS AND OPEN MONOPOLIES TO PRIVATE ENTERPRISE AFTER 22 YEARS BRITAIN COMPLETED CONVERSION OF THE POUND TO THE DECIMAL SYSTEM DISCONTINUING AS LEGAL TENDER THE LARGE 10PENCE AND THE 2SHILLING COINS THE COPPERANDNICKEL 10PENCE COIN ABOUT THE SIZE OF A US 50CENT PIECE WAS REPLACED BY A SMALLER COIN OF THE SAME DENOMINATION THAT BEGAN CIRCULATING IN SEPTEMBER THE 2SHILLING FLORIN COIN ALSO WAS VALUED AT 10 PENCE 15 US CENTS THE POUND NOW 100 PENCE USED TO EQUAL 240 PENCE EUROPEAN COMMUNITY OFFICIALS SAID SOUTH AFRICA'S EFFORTS TO LURE EC INVESTORS WILL DEPEND LARGELY ON POLICIES OF ITS NEW GOVERNMENT FOLLOWING ITS FIRST NONRACIAL ELECTIONS NEXT YEAR AT A BRUSSELS CONFERENCE THE EC SAID IT WAS POLITICALLY INCLINED TO IMPROVE TIES WITH SOUTH AFRICA BUT URGED DISMANTLING PROTECTIONIST BARRIERS AND OPENING THE ECONOMY WIDER TO FOREIGN TRADE THE EC IS SOUTH AFRICA'S LARGEST TRADING PARTNER YET SOUTH AFRICAN OFFICIALS WANT TO EXPAND THAT COMMERCE THROUGH PREFERENTIAL ARRANGEMENTS WITH THE EC CHINA IMPLEMENTED NEW ACCOUNTING REGULATIONS IN LINE WITH INTERNATIONALLY RECOGNIZED STANDARDS IN AN EFFORT TO REPLACE OUTDATED METHODS OF STATE PLANNING THE NEW RULES ARE AIMED AT MAKING CHINESE INFORMATION MORE OBJECTIVE AND MORE TRUTHFUL A TOP OFFICIAL SAID THE REGULATIONS WHICH TOOK EFFECT ON THE CHINESE COMMUNIST PARTY'S 72ND ANNIVERSARY SIGNALED AN END TO MARXIST ECONOMICS DESPITE ITS RAPID GROWTH SINCE EVOLVING FROM A COMMAND ECONOMY CHINA LACKS MODERN ACCOUNTING METHODS AND A TRANSPARENT SYSTEM OF MEASURE FINANCIAL PERFORMANCE NEEDED TO GAIN MEMBERSHIP IN THE WORLD'S MAJOR TRADE BODY INDONESIA WON A RECORD 511 BILLION IN PLEDGES FROM ITS AID CONSORTIUM OF 13 DONOR AGENCIES AND 18 GOVERNMENTS THE COMMITMENTS FOR THIS YEAR SLIGHTLY EXCEEDED THE WORLD BANK'S RECOMMENDATION OF 49 BILLION LAST YEAR DONORS PLEDGED 495 BILLION BELGIUM WHICH LAST YEAR PLEDGED 164 MILLION INSISTED ON LINKING AID TO HUMAN RIGHTS AND DIDN'T MAKE ANY COMMITMENT THIS YEAR BUT CANADA WHICH WITHHELD NEW AID A YEAR AGO REJOINED THE GROUP OF DONORS IN THE YEAR ENDED MARCH 31 INDONESIA'S ECONOMY GREW 58 AND NONOIL EXPORTS JUMPED 30 BRAZIL WILL PRINT NEW BANKNOTES OF 1 MILLION AND 5 MILLION CRUZEIRO DENOMINATIONS AS INFLATION TOPPING 30 A MONTH ERODED THE CURRENCY'S VALUE THE LARGEST BILL NOW CIRCULATING IS 500000 CRUZEIROS 970 PRICES LAST YEAR ROSE 1150 MEANWHILE BRAZIL TODAY MAY CUT AVERAGE IMPORT TARIFFS TO 14 FROM 17 RETAINING THE MAXIMUM AT 35 PREVIOUS CUTS RESULTED IN IMPORT JUMPS OF 80 IN APRIL AND 50 IN MARCH FROM THE YEAREARLIER MONTHS NINE EUROPEAN COUNTRIES AGREED TO ALLOW MANY TRAVELERS TO MOVE FREELY ACROSS THEIR BORDERS STARTING DEC 1 OVERCOMING FRENCH CONCERNS ABOUT INCREASES IN ILLEGAL IMMIGRATION AND DRUG SMUGGLING THE GROUP CONSISTS OF BELGIUM FRANCE GERMANY GREECE ITALY LUXEMBOURG THE NETHERLANDS PORTUGAL AND SPAIN THE OTHER THREE EUROPEAN COMMUNITY MEMBERS BRITAIN DENMARK AND IRELAND ARE SCHEDULED TO OPEN THEIR BORDERS BY 1997 THE DEADLINE FOR EC UNIFICATION OF MONETARY ECONOMIC AND DEFENSE POLICIES THE NINEMEMBER GROUP UNDER A JUNE 1990 AGREEMENT DEVELOPED A COMMON VISA ALLOWING MOVEMENT WITHOUT IMMIGRATION FORMALITIES FOR TOURISTS FROM 120 COUNTRIES THAT PLAN WHICH WAS TO HAVE TAKEN EFFECT LAST JAN 1 WAS DELAYED BY THE FRENCH OBJECTIONS AND TECHNICAL ISSUES UNDER THE DEC 1 COMPROMISE ADOPTED WORK WOULD CONTINUE ON IMPROVING BORDER CONTROLS AND EFFORTS TO COMBAT ILLICIT DRUGS THE FULL EC HAS ALREADY LIBERALIZED TRADE UNDER ITS SINGLEMARKET REFORMS THE INTERNATIONAL AIR TRANSPORT ASSOCIATION IN MONTREAL SAID PASSENGER TRAFFIC IN MAY GREW 6 FROM A YEAR EARLIER BUT THE NUMBER OF PLANE SEATS EXPANDED 7 AT 64 WORLDWIDE SEAT OCCUPANCY WAS THE LOWEST FOR ANY MAY SINCE 1988 IN A WELCOMING SPEECH FOR A NEW COCACOLA CO BOTTLING PLANT GEORGIAN LEADER EDUARD SHEVARDNADZE DESPITE HIS DIPLOMATIC SKILLS AS A FORMER SOVIET FOREIGN MINISTER SIPPED A COKE AND SAID IT'S JUST LIKE PEPSICOLA PEPSICO INC HAD CONTROLLED THE COLA MARKET IN THE FORMER USSR 9307010035 930701 ITT SWEETENS OFFER FOR BALLY CASINO SAYS IT IS PREPARED TO SELL 115 STAKE BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL ITT CORP SWEETENED A PREVIOUSLY UNDISCLOSED OFFER TO BUY BALLY MANUFACTURING CORP'S STAKE IN BALLY'S GRAND CASINO ITT ALSO SAID THAT ALTERNATIVELY IT WOULD BE WILLING TO SELL ITS 115 STAKE IN THE CASINO AT THE SAME PRICE ITT'S LATEST MOVE RAISED ITS BID TO 15 A SHARE FOR ASYETUNISSUED STOCK IN THE LAS VEGAS CASINO THAT STOCK IS TO BE ISSUED LATER THIS WEEK WHEN THE CASINO A UNIT OF CHICAGOBASED BALLY MANUFACTURING IS SCHEDULED TO EMERGE FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS THE 15ASHARE OFFER WHICH VALUES ALL OF BALLY'S GRAND AT 420 MILLION RAISES THE QUESTION OF WHETHER THE FIDELITY MUTUALFUND GROUP IS SELLING ITS SUBSTANTIAL BALLY'S GRAND STAKE TOO CHEAPLY IN A DEAL WITH BALLY MANUFACTURING ITT'S LATEST OFFER TOPS AN OFFER IT MADE IN MARCH TO BUY BALLY'S GRAND FOR 11 A SHARE NEW YORKBASED ITT WHICH HAS JUST AGREED TO BUY THE DESERT INN CASINO IN LAS VEGAS FOR 160 MILLION MADE THE SWEETENED OFFER FOR BALLY'S GRAND IN A LETTER SENT LAST WEEK TO ARTHUR M GOLDBERG BALLY MANUFACTURING'S CHAIRMAN COPIES OF THE CORRESPONDENCE WERE OBTAINED BY THE WALL STREET JOURNAL IN AN INTERVIEW MR GOLDBERG SAID BALLY MANUFACTURING'S STAKE IN THE LAS VEGAS CASINO IS NOT FOR SALE AND CALLED ITT'S PURCHASE OFFER A NEGOTIATING PLOY TO SELL ITS 115 HOLDINGS HE ALSO SAID ITT HASN'T MADE ANY FORMAL OFFER FOR BALLY'S GRAND SHARES ITT AND FIDELITY ACQUIRED THEIR STAKES IN BALLY'S GRAND BY BUYING THE CASINO'S DEBT WHILE IT WAS IN CHAPTER 11 UNDER A JUNE 22 AGREEMENT BOSTONBASED FIDELITY AGREED TO SWAP MUCH OF ITS STAKE IN WHENISSUED BALLY'S GRAND STOCK FOR BALLY MANUFACTURING'S 26 STAKE IN BALLY GAMING INTERNATIONAL INC A GAMBLINGMACHINE MAKER SPUN OFF BY BALLY MANUFACTURING IN 1991 THE SWAP WOULD BOOST BALLY MANUFACTURING'S STAKE IN THE CASINO TO MORE THAN 40 BALLY MANUFACTURING A CASINO AND HEALTHCLUB COMPANY HOLDS A 10YEAR MANAGEMENT AGREEMENT ON THE CASINO VALUED AT ABOUT 30 MILLION BASED ON BALLY GAMING'S CURRENT STOCK PRICE OF 13375 A SHARE FIDELITY IS GETTING ABOUT 12 FOR EACH OF ITS BALLY GRAND SHARES WELL BELOW ITT'S CURRENT OFFER A SPOKESMAN FOR FIDELITY DECLINED TO DISCUSS THE ISSUE BUT PEOPLE CLOSE TO THE MUTUALFUND GROUP SAID IT DIDN'T RECEIVE A FORMAL OFFER FROM ITT FOR ITS BALLY'S GRAND STAKE MOREOVER FIDELITY IS SAID TO CONSIDER THE BALLY GAMING STOCK AS POTENTIALLY WORTH FAR MORE THAN THE CURRENT MARKET PRICE AFTER THE SWAP FIDELITY WILL RETAIN A 20 STAKE IN BALLY'S GRAND AND WOULD CONSIDER SELLING AT AN APPROPRIATE PRICE THE PEOPLE CLOSE TO FIDELITY SAID WHEN ITT MADE ITS OFFER FOR BALLY'S GRAND STOCK IN MARCH IT ALSO OFFERED TO BUY BALLY'S PARK PLACE CASINO IN ATLANTIC CITY NJ FOR 500 MILLION BALLY MANUFACTURING REBUFFED THAT BID AS WELL AN ITT SPOKESMAN SAID THE COMPANY IS WILLING TO BUY BALLY'S GRAND EVEN THOUGH IT JUST AGREED TO BUY ANOTHER LAS VEGAS CASINO OUR AIM IS TO BE A MARKET LEADER A SPOKESMAN SAID OF ITT'S VENTURE INTO THE CASINO BUSINESS 9307010034 930701 BROKERS WIN ON FIRSTHALF OFFERING BOOM BY ALEXANDRA PEERS AND MICHAEL SICONOLFI STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK CORPORATE AMERICA'S SALES OF NEW STOCKS AND BONDS SOARED 19 IN THE FIRST HALF BREAKING A RECORD AND BRINGING A WINDFALL TO WALL STREET SECURITIES BROKERS TOOK HOME 43 BILLION IN UNDERWRITING FEES IN THE HALF THE INDUSTRY'S FATTEST PAYCHECK EVER FOR THE PERIOD AND MORE THAN THE FULLYEAR FEE TOTAL IN 1991 ACCORDING TO SECURITIES DATA CO AN INFORMATION PROVIDER ALL TOLD WALL STREET FIRMS HELPED BRING TO MARKET 3398 STOCK AND BOND DEALS VALUED AT 5296 BILLION FOR THE FIRST SIX MONTHS OF 1993 UP FROM 4448 BILLION FOR THE SAME PERIOD LAST YEAR ONE OF THE REAL DRIVING FACTORS OF THIS BOOM IS A COMPLETE RECASTING OF CORPORATE BALANCE SHEETS SAYS TONY BROOKS A MANAGING DIRECTOR OF SHEARSON LEHMAN BROTHERS A UNIT OF AMERICAN EXPRESS CO AS COMPANIES ABANDON THEIR 1980S PENCHANT FOR BORROWING THEY'RE REFINANCING DEBT TO LOWER THEIR INTERESTRATE COSTS AND ISSUING EQUITY MORE OFTEN DESPITE THE BLOCKBUSTER HALF SOME STEAM MAY BE GOING OUT OF THE 2 1/2YEAR UNDERWRITING BOOM ALTHOUGH SIXMONTH VOLUME BROKE RECORDS IN JUST ABOUT EVERY CATEGORY THE SECONDQUARTER NUMBERS INDICATE A SLOWDOWN IN THE RUSH BY US CORPORATIONS TO REFINANCE DEBT AND INCREASING CHOOSINESS ON THE PART OF INVESTORS IN INITIAL PUBLIC OFFERINGS ON THE DEBT SIDE FEWER CORPORATE BONDS JUNK BONDS AND MORTGAGEBACKED SECURITIES WERE ISSUED IN THE SECOND QUARTER THAN IN THE FIRST OVERALL DEBT ISSUANCE EASED 7 FROM QUARTER TO QUARTER TO 2251 BILLION WHILE THE SIZZLING PACE OF INITIAL PUBLIC OFFERING ISSUANCE CONTINUED WITH A RECORD 275 DEALS COMING IN THE FIRST SIX MONTHS THE EXPLOSIVE VOLUME HAS MASKED SOME WEAKNESS IN THE MARKET INVESTMENT BANKERS SAY INVESTORS ARE BEING MUCH MORE SELECTIVE SAYS DAVID KOMANSKY HEAD OF THE STOCK AND BOND GROUPS AT MERRILL LYNCH & CO THEY'RE BUYING ONLY WHAT THEY THINK IS A GOOD VALUE OR A GOOD STORY THE EXPLOSION OF DEALS AND THE RESULTING UNDERWRITING FEES INDICATE THE SECOND QUARTER WILL ONCE MORE RESULT IN HEARTY EARNINGS REPORTS FROM BROKERAGE FIRMS TO THESE VICTORS WENT THE GREATEST SHARE OF THE SPOILS MERRILL LYNCH THE NATION'S LARGEST BROKERAGE CONCERN RETAINED ITS NO 1 RANKING IN BOTH STOCK AND BOND ISSUANCE FOR THE FIRST HALF THE COMPANY RACKED UP UNDERWRITING FEES OF 8782 MILLION AND CONTINUED ITS FIVEYEAR WINNING STREAK IN THE BUSINESS GOLDMAN SACHS & CO CAME IN SECOND FOR THE HALF BUT CAPTURED THE LEAD IN THE EQUITIES BUSINESS IN THE SECOND QUARTER BOOSTED BY ITS LEADMANAGER STATUS FOR THE BIGGEST STOCK DEAL EVER SOLD LAST MONTH'S 24 BILLION OFFERING FOR INSURER ALLSTATE CORP SALOMON BROTHERS INC'S STOCK UNDERWRITING OPERATIONS APPEAR TO BE REBOUNDING FROM A LONG DRY SPELL FOLLOWING THE COMPANY'S 1991 TREASURYAUCTION BIDDING SCANDAL AND SUBSEQUENT INVESTIGATION BY THE FEDERAL GOVERNMENT THE SALOMON INC UNIT'S SHARE OF THE EQUITY MARKET ADVANCED TO 46 FROM 22 IN LAST YEAR'S FIRST HALF AND THE COMPANY SERVED AS LEAD MANAGER ON 26 ISSUES UP FROM SEVEN IN THE 1992 FIRST HALF BUT IT LOST A LITTLE GROUND IN THE DEBT MARKETS OVERALL SALOMON'S MARKET SHARE OF COMBINED STOCK AND BOND UNDERWRITING EASED TO 8 FROM 88 A YEAR BEFORE RANKING THE CONCERN SIXTH IN BOTH EQUITY AND DEBT UNDERWRITING OVERALL HOWEVER IN THE BITTERLY CONTESTED SECURITIES FIRMS RANKINGS THERE WAS A MINIMUM OF MUSICAL CHAIRS MOST TOPTIER CONCERNS CONSOLIDATED AND ADVANCED ON EARLIER LEADS AND 86 OF THE BUSINESS WAS DIVVIED UP AMONG JUST 10 COMPANIES LEADING THE STAMPEDE OF SECURITIES ISSUERS COMING TO MARKET WERE CASINOS AND INSURANCE COMPANIES THERE HAS BEEN A FLURRY OF CASINO FINANCING BECAUSE STATES ARE DRAMATICALLY LIBERALIZING THEIR GAMBLING LAWS SAYS RICHARD BARRETT MANAGING DIRECTOR AND COHEAD OF GLOBAL INVESTMENT BANKING AT SALOMON BROTHERS NEW CAPITAL GUIDELINES FOR THE INSURANCE INDUSTRY BOOSTED OFFERINGS BY INSURERS HE NOTED THE BIGGEST FLOP OF THE QUARTER WAS THE CANCELED 17 BILLION OFFERING FOR RJR NABISCO HOLDINGS CORP'S PROPOSED NABISCO FOODSTOCK OFFERING ANALYSTS SAY IN CANCELING THE DEAL LATE LAST MONTH RJR BLAMED THE SLUMP IN MARKET VALUE FOR FOOD COMPANIES IN RECENT MONTHS YANKING THE DEAL WAS A BLOW TO MORGAN STANLEY GROUP INC THE LEAD UNDERWRITER AMONG THE TRANSACTIONS POSTPONED IN THE SECOND QUARTER WERE STOCK OFFERINGS FOR ADELPHIA COMMUNICATIONS CORP 196 MILLION LEAD MANAGER SALOMON BROTHERS PRESIDENT RIVERBOAT CASINOS INC 184 MILLION MONTGOMERY SECURITIES AND OWENSCORNING FIBERGLAS CORP 158 MILLION GOLDMAN SACHS RIGHT NOW THERE ARE 727 NEWSTOCK ISSUES SET TO COME TO MARKET IN THE NEXT FEW MONTHS WITH EXPECTED PROCEEDS OF 42 BILLION ACCORDING TO SECURITIES DATA BUT AN UNUSUAL PERCENTAGE OF THAT CALENDAR IS MADE UP OF SMALL TO MEDIUMSIZED IPOS SAYS MERRILL'S MR KOMANSKY WHICH HE SAYS IS INDICATIVE OF A LATESTAGE CYCLE MORE FOREIGN COMPANIES ARE SELLING STOCK IN THE US A TREND THAT IS LIKELY TO CONTINUE PICKING UP STEAM INVESTMENT BANKERS SAY IN THE FIRST HALF THE VOLUME OF THESE YANKEE STOCK TRANSACTIONS JUMPED 14 FROM A YEAR EARLIER TO 37 BILLION SECURITIES DATA SAYS THE FUEL THAT FIRED THE US EQUITY MARKET DECLINING INTEREST RATES IS A PHENOMENON THAT IS STARTING TO OCCUR GLOBALLY SIGNALING CONTINUED ROBUST UNDERWRITING ACTIVITY WORLDWIDE SAYS MICHAEL D MADDEN FORMER COHEAD OF INVESTMENT BANKING AT SHEARSON LEHMAN 9307010033 930701 INTERNATIONAL RUSSIANS STRESS NEED FOR HELP OF G7 NATIONS SUCCESS OF THE COUNTRY'S PRIVATIZATION PROGRAM IS TIED TO SIZABLE AID BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW TO HEAR RUSSIA'S REFORMERS TELL IT IF THE GROUP OF SEVEN INDUSTRIAL NATIONS FAILS TO DELIVER A BIG AID PACKAGE AT NEXT WEEK'S TOKYO SUMMIT RUSSIA'S PRIVATIZATION PROGRAM COULD BE IN BIG TROUBLE FOREIGN ASSISTANCE IS CRITICAL AT THIS STAGE SAYS MAXIM BOIKO HEAD OF THE NEW RUSSIAN PRIVATIZATION CENTER WHICH COORDINATES OUTSIDE ASSISTANCE WITHOUT LARGESCALE FOREIGN SUPPORT HE WARNS NEWLY PRIVATIZED ENTERPRISES COULD FIND SURVIVAL SO DIFFICULT THAT MANY MIGHT ASK THE STATE TO RETAKE CONTROL PRIVATIZATION THE TRANSFER OF STATE ASSETS TO PRIVATE HANDS IS GENERALLY VIEWED AS ONE OF THE FEW SUCCESS STORIES OF PRESIDENT BORIS YELTSIN'S GOVERNMENT SINCE DECEMBER SOME 2100 ENTERPRISES HAVE AUCTIONED OFF THEIR SHARES IN EXCHANGE FOR PRIVATIZATION VOUCHERS THAT THE GOVERNMENT DISTRIBUTED FREE TO EACH CITIZEN AND 3000 MORE ENTERPRISES ARE PREPARING THEIR OWN SHARE SALES SO FAR 20 MILLION RUSSIANS HAVE BECOME OWNERS OF SHARES IN COMPANIES OR RELATED INVESTMENT FUNDS BUT ALTHOUGH THE SHARE AUCTIONS CLARIFY OWNERSHIP AND GIVE CITIZENS A STAKE IN THE ECONOMY THEY HAVEN'T BROUGHT NEW INJECTIONS OF CAPITAL NOR HAS THERE BEEN ANY SIGNIFICANT RESTRUCTURING OF OFTENBLOATED AND INEFFICIENT ENTERPRISES THE NEXT AND MORE CRITICAL STAGE OF THE PROCESS IS TO RESTRUCTURE THE ENTERPRISES BUT THAT WILL REQUIRE HUGE SUMS OF CAPITAL THAT RUSSIA CAN'T PROVIDE BY ITSELF RUSSIA IS ASKING THE G7 TO APPROVE A 4 BILLION PROGRAM TO RESTRUCTURE ENTERPRISES RECENTLY SOLD OFF BY THE STATE BUT IT ISN'T LIKELY TO GET ANYWHERE NEAR THAT AMOUNT LAST WEEK JAPAN'S FOREIGN MINISTER KABUN MUTO DISMISSED THE 4 BILLION PROPOSAL AS PREPOSTEROUS AND SUGGESTED FUNDING OF JUST 500 MILLION THE JAPANESE STATEMENT SENT SHOCK WAVES THROUGH MOSCOW WITHIN A DAY MR MUTO HAD APOLOGIZED FOR SPEAKING OUT OF TURN AND JAPAN'S AMBASSADOR TO RUSSIA WAS AT THE OFFICES OF RUSSIA'S STATE PROPERTY COMMITTEE MAKING CLARIFICATIONS WE ARE NOT TALKING ABOUT A LITTLE EXPERIMENT SAYS MR BOIKO WHO AT 33 YEARS OLD IS ONE OF THE WHIZ KIDS DIRECTING RUSSIA'S PRIVATIZATION DRIVE WE ARE ALREADY PRIVATIZING AT A SPEED AND SCALE UNPRECEDENTED IN HISTORY THE PROPOSED RESTRUCTURING FUND'S MAIN GOAL IS TO SET UP 30 REGIONAL ENTERPRISE FUNDS TO INVEST IN NEWLY PRIVATIZED COMPANIES TO PROVIDE SEED CAPITAL FOR THE FUNDS RUSSIA HOPES TO RAISE 19 BILLION IN GRANTS FROM G7 NATIONS 1 BILLION IN LONGTERM CREDITS FROM INTERNATIONAL LENDERS AND G7 GOVERNMENTS AND 11 BILLION FROM THE WORLD BANK AND EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT THE REGIONAL FUNDS WOULD BE MANAGED BY RUSSIAN AND FOREIGN VENTURE CAPITALISTS OR FUND MANAGERS MOSCOW WOULD PLAY A MINIMAL ROLE THE FUNDS WOULD INVEST ON A COMMERCIAL BASIS IN EQUITY IN ENTERPRISES THEY WOULD PROVIDE TECHNICAL ASSISTANCE TO ENTERPRISES INCLUDING OVERSEAS TRAINING FOR MANAGERS AND THEY WOULD HELP LARGE ENTERPRISES SHED THE SCHOOLS CLINICS AND OTHER SOCIAL SERVICES THAT THEY TYPICALLY PROVIDE TO THEIR WORKERS SUCH SERVICES WOULD BE TRANSFERRED TO LOCAL GOVERNMENTS AS AN EXAMPLE OF THE KIND OF RESTRUCTURING RUSSIA ENVISAGES MR BOIKO CITES A RECENTLY PRIVATIZED ENTERPRISE IN ST PETERSBURG THE COMPANY IS IRRATIONALLY DIVERSE IT OPERATES A SEAPORT PRODUCES FURNITURE AND RUNS A BAKERY NO ONE IS GOING TO INVEST IN A COMPANY LIKE THAT SAYS MR BOIKO IT NEEDS TO BE RESTRUCTURED BY PROFESSIONALS MR BOIKO'S BEST ARGUMENT MAY BE THAT PRIVATIZATION IS NEEDED TO STABILIZE THE ECONOMY RUSSIA'S ECONOMY IN RECENT MONTHS HAS TEETERED CLOSE TO RUNAWAY INFLATION WHILE THE RUBLE HAS PLUMMETED AGAINST THE DOLLAR IF ENTERPRISES CAN BE RESTRUCTURED THEY WILL NO LONGER NEED TO RELY ON THE CHEAP CREDITS THAT ARE NOW FUELING INFLATION MR BOIKO SAYS INDEED HE ADDS IF THE WEST FAILS TO COME THROUGH WITH SUBSTANTIAL FUNDING THE ALTERNATIVES COULD BE COSTLIER G7 NATIONS HAVE CONTRIBUTED BILLIONS OF DOLLARS ALREADY TOWARD STABILIZATION WITH LITTLE RESULT BUT INITIAL SIGNS OF STABILIZATION MAY BE APPEARING RUSSIAN FINANCE MINISTER BORIS FYODOROV PREDICTED AT A NEWS CONFERENCE THAT THE RUBLE WILL STABILIZE AT ITS CURRENT RATE OF ABOUT 1100 TO THE DOLLAR AT LEAST FOR SEVERAL WEEKS AND HE SAID RUSSIA'S INFLATION RATE IS LIKELY TO HOLD STEADY AT ABOUT 15 A MONTH WELL BELOW THE HYPERINFLATION THRESHOLD OF 50 A MONTH MR FYODOROV ALSO SAID RUSSIA WOULDN'T REVIVE ITS ECONOMIC SHOCK THERAPY INSTEAD HE SAID THE GOVERNMENT WILL PURSUE A SOFTER ANTIINFLATION POLICY