SMALL BUSINESSES REMAIN SKITTISH ABOUT CREDIT DESPITE HOPEFUL SIGNS ACCESS TO CAPITAL STILL WORRIES ENTREPRENEURS CONCLUDES A SURVEY CONDUCTED IN MARCH BY ERNST & YOUNG OF 297 FASTGROWING SMALL BUSINESSES AMONG THE LARGER GROWING CONCERNS IN THE SAMPLE COMMONLY THE ONES REQUIRING THE MOST CAPITAL HALF SAID THEY EXPECTED A MORE DIFFICULT CREDIT ENVIRONMENT IN THE NEXT 18 MONTHS ONLY 31 OF THOSE SURVEYED LAST YEAR EXPECTED SIMILAR CREDIT CONDITIONS THE DREARY OUTLOOK COMES AFTER A DIFFICULT 12 MONTHS OTHER SURVEYS INDICATE ABOUT 38 OF THE 687 SMALL AND MEDIUMSIZE BUSINESSES POLLED IN APRIL BY NATIONAL SMALL BUSINESS UNITED AND ARTHUR ANDERSEN & CO SAID THEY HAVE BEEN UNABLE TO FULFILL THEIR CAPITAL NEEDS DURING THE PAST YEAR THE SITUATION WAS THE MOST DIFFICULT FOR COMPANIES IN BUSINESS FOR FEWER THAN THREE YEARS 58 OF THAT GROUP SAID THEY HAD BEEN UNABLE TO MEET ALL OF THEIR CREDIT NEEDS FEARFUL OF CREDIT PROBLEMS AND THE UNCERTAIN ECONOMY MORE SMALL BUSINESSES ARE CUTTING BACK ON THEIR BORROWING ACCORDING TO A COOPERS & LYBRAND SURVEY OF 400 CONCERNS FEWER FASTGROWING COMPANIES BORROWED MONEY DURING THIS YEAR'S FIRST QUARTER COMPARED WITH A YEAR EARLIER ONLY 31 OF THE COMPANIES TOOK LOANS IN THE FIRST QUARTER DOWN FROM 36 A YEAR EARLIER THE DECLINE OCCURRED DESPITE LOWER INTEREST RATES NOTES THE SURVEY CONDUCTED IN MARCH STILL THERE ARE SOME POSITIVE SIGNS MANY BANKS ARE LOWERING BORROWING COSTS MASSACHUSETTS IS PLANNING A 15 MILLION LOAN FUND FOR STARTUP COMPANIES WITH HIGH GROWTH POTENTIAL STARTING IN SEPTEMBER LOCAL STARTUPS CAN TAP THE NEW EMERGING TECHNOLOGIES FUND TO FINANCE ACTIVITIES SUCH AS CONSTRUCTION OR EXPANSION OF RESEARCH AND MANUFACTURING FACILITIES THE STATE ALSO PLANS TO PROVIDE 30 MILLION IN LOAN GUARANTEES WE'RE TRYING TO REMEDY THE CREDIT SHORTAGE A SPOKESMAN FOR THE MASSACHUSETTS OFFICE OF ECONOMIC AFFAIRS SAYS THE FUND AND LOAN GUARANTEES MAY GENERATE AS MUCH AS 200 MILLION IN TOTAL FINANCING FROM PRIVATE BANKS THE OFFICE ESTIMATES AND LAST WEEK CITIBANK ANNOUNCED PLANS TO LEND UP TO 1 BILLION THIS YEAR TO SMALL BUSINESSES AND PROFESSIONAL SERVICE PROVIDERS WITH ANNUAL REVENUE OF LESS THAN 20 MILLION APIECE THAT WOULD BE 400 MILLION MORE THAN THE TOTAL LOANS IT PROVIDED LAST YEAR TO SUCH FIRMS IN THE NEW YORK METROPOLITAN AREA DURING THIS YEAR'S FIRST HALF CITIBANK HAS LENT AN ESTIMATED 200 MILLION TO SMALL BUSINESSES THE CITICORP UNIT SAYS IT IS WORKING WITH LOCAL COMMUNITY GROUPS TO IDENTIFY POTENTIAL BORROWERS ASSIGNING MORE EXECUTIVES TO HANDLE SMALLBUSINESS LOANS AND STREAMLINING LOAN PROCEDURES WE WANT TO MAKE BORROWERS AWARE THAT WE ARE A MAJOR SOURCE OF CREDIT SAYS KAPO KASANDA DIRECTOR OF THE BANK'S COMMUNITYBUSINESS BANKING GROUP SOME CORPORATIONS ARE LEAVING THE GROWING VENTURECAPITAL BUSINESS THE NUMBER OF CORPORATIONS WITH INTERNAL VENTURECAPITAL FUNDS HAS FALLEN TO 79 FROM 100 IN 1990 ACCORDING TO VENTURE ECONOMICS A NEWARK NJ RESEARCH AND CONSULTING CONCERN THE ECONOMIC CLIMATE OF THE PAST FEW YEARS HAS BEEN HARD ON CORPORATE VENTURE PROGRAMS SAYS ROBERT MAST VICE PRESIDENT OF VENTURE ECONOMICS THE PROGRAMS OFTEN OUTGROWTHS OF STRATEGIC OR DIVERSIFICATION NEEDS HAVE FALLEN PREY TO MANAGEMENT CHANGES AND STRATEGY SHIFTS AS BIG COMPANIES DEVELOP FINANCIAL DIFFICULTIES OR EXPERIENCE CHANGES AT THE TOP OR SHIFT FOCUS THEIR VENTURE PROGRAMS ARE AMONG THE FIRST TO BE AXED BELLSOUTH CORP ROCKWELL INTERNATIONAL CORP AND U S WEST INC ARE AMONG THE CORPORATIONS THAT RECENTLY DROPPED THEIR VENTURE CAPITAL PROGRAMS SAYS VENTURE ECONOMICS TECHNOLOGY COMPANIES WITH WELLPUBLICIZED PROBLEMS SUCH AS DIGITAL EQUIPMENT CORP WANG LABORATORIES INC AND APPLE COMPUTER INC ALSO ARE AMONG THE DROPOUTS ACCORDING TO THE FIRM YET SOME CORPORATIONS IN HEALTH CARE ELECTRONICS AND INDUSTRIAL PRODUCTS AND MACHINERY CONTINUE TO INVEST IN THEIR VENTURE CAPITAL PROGRAMS THE PROGRAMS CAN BE EXTREMELY USEFUL IN TRACKING NEW AND EXCITING TECHNOLOGIES BEING DEVELOPED BY SMALL FIRMS EXPLAINS DOUG REED A PARTNER WITH SR ONE LTD THE VENTURECAPITAL ARM OF SMITHKLINE BEECHAM PLC THROUGH ITS 100MILLION VENTURE CAPITAL FUND SMITHKLINE HAS KEPT CLOSE WATCH ON MAJOR ENTREPRENEURIAL INITIATIVES IN AREAS SUCH AS BIOTECHNOLOGY AND HEALTH CARE SAYS MR REED PORTFOLIO COMPANIES ALSO HAVE BENEFITED HE ADDS IN SEVERAL INSTANCES THE FUND'S INVESTMENTS HAVE LED TO DEVELOPMENT AND MARKETING RELATIONSHIPS BETWEEN A PORTFOLIO COMPANY AND SMITHKLINE IN OTHER INSTANCES SMITHKLINE'S EXPERTISE HAS HELPED PORTFOLIO COMPANIES TO DEVELOP NEW PRODUCT LINES SIMILARLY XEROX CORP HAS CREATED TWO VENTURE CAPITAL PROGRAMS XEROX VENTURE CAPITAL INVESTS IN COMPANIES THAT OPERATE IN XEROX'S FIELDS OF EXPERTISE AND ALSO OFFER ATTRACTIVE FINANCIAL RETURNS ITS NEWER TECHNOLOGY VENTURES ESTABLISHED IN 1989 IS LOOKING AT INTERNAL IDEAS AND PROJECTS THAT CAN BE SPUN OFF INTO STANDALONE COMPANIES CORPORATE VENTURE CAPITAL PROGRAMS NOW MANAGE MORE THAN 2 BILLION OR ABOUT 20 LESS THAN FIVE YEARS AGO VENTURE ECONOMICS ESTIMATES THE CURRENT TOTAL IS SMALL COMPARED WITH THE ENTIRE VENTURE CAPITAL INDUSTRY WHOSE INVESTMENTS IN SMALL COMPANIES SOARED LAST YEAR BUT CORPORATE PROGRAMS HAVE A LARGE IMPACT BECAUSE THE PARENT COMPANIES OFTEN BRING THEIR EXPERTISE AND RESOURCES TO THE TABLE SMALL FIRMS SAY THE PROGRAMS PROVIDE INSTANT CREDIBILITY AND ENHANCE VALUATIONS A MAJOR INSURANCE COMPANY COMMITS FUNDS FOR MINORITY CONTRACTORS AMWEST SURETY INSURANCE CO A WOODLAND HILLS CALIF INSURER THAT SPECIALIZES IN UNDERWRITING BONDS SAYS IT WILL PROVIDE UP TO 50 MILLION IN BONDS TO MINORITY CONTRACTORS IN 10 MIDWESTERN STATES THE EFFORT IS ONE OF THE REGION'S FIRST PROBLEMS OBTAINING BONDING HAVE BEEN A MAJOR OBSTACLE FOR MANY MINORITY CONTRACTORS AMWEST A UNIT OF AMWEST INSURANCE GROUP INC SAYS IT WILL WORK WITH TWO CHICAGO COMMUNITY GROUPS TO EXPAND THE NUMBER OF MINORITY CONTRACTORS THAT CAN BID FOR MAJOR CONSTRUCTION CONTRACTS THE INSURER ALSO PLANS TO STREAMLINE ITS BONDING APPLICATION PROCESS IN ADDITION IT WILL USE FEDERAL AND STATE BOND GUARANTEE PROGRAMS TO REDUCE THE NEED FOR COLLATERAL AMWEST ALREADY HAS MADE A SIMILAR COMMITMENT TO MINORITY CONTRACTORS DOING BUSINESS IN THE NEW YORK AND NEW JERSEY AREA 9307010030 930701 INTERNATIONAL BRIEF BRIERLEY INVESTMENTS LTD COMPANY TO MOVE OFFSHOOTS INTO A LISTED UMBRELLA' UNIT THE UMBRELLA COMPANY FOR THE OFFSHOOTS WILL BE SKELLERUP INDUSTRIES LTD A DIVERSIFIED MANUFACTURING COMPANY THAT IS ONE OF BRIERLEY'S LARGEST NEW ZEALAND UNITS BRIERLEY SAID SKELLERUP WOULD HAVE ANNUAL REVENUE OF MORE THAN 500 MILLION NEW ZEALAND DOLLARS US269 MILLION SHAREHOLDERS' FUNDS OF NZ150 MILLION AND PROJECTED EARNINGS BEFORE INTEREST AND TAX OF NZ40 MILLION IN ITS FIRST YEAR OF OPERATION PAUL COLLINS CHIEF EXECUTIVE OFFICER OF BRIERLEY SAID THE EXPANDED SKELLERUP WILL INCORPORATE COMPANIES WITH INTERESTS IN THE MANUFACTURING DISTRIBUTION RETAIL AND RESOURCE AND MINING SECTORS 9307010029 930701 AMERICAN PRESIDENT GETS PERMIT OAKLAND CALIF AMERICAN PRESIDENT COS SAID THE LOS ANGELES BOARD OF HARBOR COMMISSIONERS APPROVED A 30YEAR PERMIT FOR A 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 9307010028 930701 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION GLOBAL MARINE INC AN OFFERING OF 15 MILLION COMMON SHARES VIA GOLDMAN SACHS & CO PMC COMMERCIAL TRUST AN OFFERING OF UP TO 3450000 COMMON SHARES OF BENEFICIAL INTEREST INCLUDING 450000 COMMON SHARES OF BENEFICIAL INTEREST TO COVER OVERALLOTMENTS IF ANY VIA OPPENHEIMER & CO AND FAHNESTOCK & CO WOLVERINE HOLDING CO AN INITIAL OFFERING OF 57 MILLION COMMON SHARES VIA FIRST BOSTON CORP LEHMAN BROS AND MERRILL LYNCH & CO IN THE US AND CREDIT SUISSE FIRST BOSTON AND MERRILL LYNCH INTERNATIONAL LTD INTERNATIONALLY 9307010027 930701 TECHNOLOGY & MEDICINE CHINESE TEA YIELDS SECRET OF ITS SUCCESS AGAINST MALARIA BUG CONCOCTION OF ARTEMISIA REACTS WITH IRON THAT THE PARASITE CAN'T DIGEST IN HEMOGLOBIN BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL SCIENTISTS THINK THEY HAVE FIGURED OUT WHY AN HERBAL TEA USED BY THE CHINESE FOR MORE THAN 1500 YEARS TO TREAT FEVER MAY PROVE TO BE THE MOST EFFECTIVE DRUG YET FOUND AGAINST MALARIA THE TEA QINGHAOSU IS MADE FROM THE LEAVES OF A COMMON WEED CALLED ARTEMISIA ANNUA IN MALARIA PATIENTS THE PLANT'S ACTIVE INGREDIENT ARTEMISININ STARTS A CHEMICAL REACTION THAT POISONS THE MALARIA PARASITE ACCORDING TO STEVEN R MESHNICK A PARASITOLOGIST AT THE UNIVERSITY OF MICHIGAN SCHOOL OF PUBLIC HEALTH CURRENTLY MALARIA KILLS ABOUT TWO MILLION PEOPLE A YEAR WORLDWIDE STRAINS OF MALARIA THAT ARE RESISTANT TO THE NEARLY ALL THE TRADITIONAL ANTIMALARIAL DRUGS SUCH AS QUININE AND CHLOROQUINE ARE SPREADING RAPIDLY BUT THE MALARIA PARASITE APPARENTLY HASN'T DEVELOPED RESISTANCE TO ARTEMISININ EVEN AFTER CENTURIES OF USE DR MESHNICK SAID THE MALARIA PARASITE LIVES IN THE HUMAN RED BLOOD CELL AND DESTROYS HEMOGLOBIN THE MOLECULE THAT CARRIES OXYGEN TO CELLS THROUGHOUT THE BODY THE PARASITE HOWEVER CAN'T DIGEST THE PART OF THE HEMOGLOBIN THAT CONTAINS IRON DR MESHNICK DETERMINED THAT A DRUG MADE FROM ARTEMISININ BINDS TO THE UNDIGESTED IRON THE RESULTING REACTION PRODUCES A CHEMICAL THAT RELEASES DEADLY MOLECULES CALLED FREE RADICALS IN THE MILLIONTHS OF A SECOND THAT THEY EXIST THE FREE RADICALS DESTROY VITAL PARTS OF THE PARASITE HE SAID DR MESHNICK'S STUDY OF THE DRUG'S EFFECT ON THE PARASITE WAS PUBLISHED IN MAY ISSUE OF THE JOURNAL ANTIMICROBIAL AGENTS AND CHEMOTHERAPY MEANWHILE IN A CLINICAL TRIAL OF 638 MALARIAL PATIENTS IN VIETNAM DR MESHNICK FOUND THE DRUG ELIMINATED THE MALARIA PARASITES WITHIN 24 HOURS WITHOUT SIGNIFICANT SIDE EFFECTS CONFIRMING OTHER STUDIES BETWEEN 10 AND 23 OF THE PATIENTS HOWEVER SUFFERED RELAPSES PERHAPS AS A RESULT OF REINFECTION HE SAID TAKING THE ANTIBIOTIC TETRACYCLINE AFTER COMPLETING ARTEMISININ TREATMENT REDUCED THE RELAPSE RATE TO 95 THE STUDY WAS PUBLISHED IN THE MARCH ISSUE OF THE AMERICAN JOURNAL OF TROPICAL MEDICINE AND HYGIENE RHONEPOULENC RORER INC WHICH IS MAJORITYOWNED BY RHONEPOULENC SA OF FRANCE IS SEEKING APPROVAL TO SELL A FORM OF ARTEMISININ UNDER THE NAME PALUTHER IN DEVELOPING COUNTRIES 9307010026 930701 TECHNOLOGY & MEDICINE FIVE HOSPITALS PLAN TO DISCUSS JOINING SERVICES BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON IN A SIGN OF THE GROWING PRESSURE ON HOSPITALS TO CUT COSTS FIVE BIG TEACHING HOSPITALS HERE PLAN TO HOLD TALKS ON COLLABORATING TO ELIMINATE REDUNDANCIES SAID HOSPITAL OFFICIALS THE HOSPITALS ARE AFFILIATED WITH HARVARD MEDICAL SCHOOL WHOSE DEAN DANIEL TOSTESON REPORTEDLY CONVENED THE TALKS A NUMBER OF LARGE URBAN HOSPITALS HAVE CONSOLIDATED SERVICES OR MERGED IN RECENT YEARS THE COLLABORATION TAKING SHAPE HERE AMONG FIVE PRESTIGIOUS COMPETING HOSPITALS MAY BECOME ONE OF THE NATION'S MOST AMBITIOUS ATTEMPTS TO PARE DUPLICATED MEDICAL SERVICES BOSTON HAS BEEN CALLED THE BEIRUT OF MEDICAL ECONOMICS SAID RICHARD WADE SENIOR VICE PRESIDENT COMMUNICATIONS OF THE AMERICAN HOSPITAL ASSOCIATION THIS COULD MEAN PEACE IS COMING THE BOSTON HOSPITALS HAVE AGREED TO A SIXMONTH PLANNING PROCESS ON CLOSER AFFILIATION BUT DETAILS HAVEN'T BEEN HAMMERED OUT SAID A SPOKESWOMAN FOR BRIGHAM AND WOMEN'S HOSPITAL WHICH WILL HOLD THE TALKS WITH MASSACHUSETTS GENERAL CHILDREN'S BETH ISRAEL AND NEW ENGLAND DEACONESS HOSPITALS HARVARD'S DR TOSTESON AND HOSPITAL EXECUTIVES DECLINED TO COMMENT ON THE TALKS WHICH WERE FIRST REPORTED YESTERDAY IN THE BOSTON GLOBE THE HOSPITALS MAY MERGE SOME OPERATIONS TO ELIMINATE DUPLICATED SPECIALTIES BUT SOURCES FAMILIAR WITH THE HOSPITALS' PLANNING PROCESS SAID IT ISN'T CLEAR HOW FAR THEY WILL GO IN CONSOLIDATING SERVICES THE CONSOLIDATION COULD HELP LOWER COSTS BOTH BY ELIMINATING EXCESS BEDS AND CUTTING REDUNDANT HIGHTECHNOLOGY PROGRAMS HOSPITAL CONSOLIDATION IN BOSTON ALSO COULD LEAD TO THOUSANDS OF LAYOFFS DEALING A MAJOR BLOW TO THE STRONGEST SEGMENT OF THE AREA'S ECONOMY AND DELAYING ITS RECOVERY FROM RECESSION SAID FREDERICK BREIMYER PRESIDENT OF THE NEW ENGLAND ECONOMIC PROJECT A FORECASTING ORGANIZATION AND CHIEF ECONOMIST AT BOSTON'S STATE STREET BANK THE HOSPITALS ALREADY ARE TIGHTENING BUDGETS AND SCALING BACK EXPANSION PLANS MASSACHUSETTS GENERAL HOSPITAL BOSTON'S LARGEST PRIVATE EMPLOYER PLANS TO CUT ITS OPERATING BUDGET BY ABOUT 9 FOR FISCAL 1994 ENDING SEPT 30 A GOAL THAT WILL ENTAIL JOB CUTS VIA ATTRITION AND LAYOFFS A SPOKESMAN SAID BRIGHAM AND WOMEN'S HOSPITAL RECENTLY SET A GOAL TO CUT ABOUT 200 FULLTIME POSITIONS BY ATTRITION AND LAYOFFS SAID A SPOKESWOMAN FOR THE HOSPITAL SOME DOWNSIZING OF HOSPITALS IS INEVITABLE SAID THE AMERICAN HOSPITAL ASSOCIATION'S MR WADE THE QUESTION IS WHETHER IT WILL BE DONE HELTERSKELTER AT THE HANDS OF MARKET FORCES OR IN A MORE COORDINATED AND RATIONAL WAY 9307010025 930701 PEPPERAND SALT WILL SHOW UP ON THE MINISERIES OF THE ONES WHO THOUGHT THEM UP WHEN MAN MAKES THIS DISCOVERY THAN SUFFER THE RECOVERY ON AN OFT REPEATED THING WILL MAKE A TELEPHONE RING 9307010023 930701 CYPRESS SEMICONDUCTOR SAN JOSE CALIF CYPRESS SEMICONDUCTOR CORP SAID IT RECEIVED ALL FEDERAL REGULATORY APPROVALS NECCESSARY TO COMPLETE THE PROPOSED SALE OF ITS UNIT ROSS TECHNOLOGY INC TO JAPAN'S FUJITSU LTD IN MAY CYPRESS ANNOUNCED IT PLANNED TO SELL ITS AUSTIN TEXASBASED ROSS SUBSIDIARY TO FUJITSU FOR 23 MILLION THE TRANSACTION IS SUBJECT TO FINAL APPROVAL OF DEFINITIVE AGREEMENTS BY THE BOARDS OF CYPRESS AND FUJITSU 9307010022 930701 SHONEY'S SAYS PLAN TO BUY BACK STAKE OF FOUNDER COLLAPSES NASHVILLE TENN SHONEY'S INC SAID A PLAN TO BUY BACK ALL OF THE HOLDINGS OF ITS FOUNDER RAYMOND L DANNER COLLAPSED TAYLOR H HENRY CHAIRMAN AND CHIEF EXECUTIVE OF THE RESTAURANT COMPANY SAID CERTAIN CONTINGENCIES INCLUDING THE PRICE THAT WOULD BE PAID TO PURCHASE APPROXIMATELY 46 MILLION SHARES OWNED OR CONTROLLED BY MR DANNER AND HIS FAMILY HADN'T BEEN SATISFIED IN MARCH MR DANNER AND SHONEY'S HAD AGREED THAT THE COMPANY WOULD PAY 22875 FOR EACH OF MR DANNER'S SHARES AT THE TIME THE TRANSACTION WAS REGARDED AS A PLUS FOR SHONEY'S WHICH HAD BEEN INVOLVED ALONG WITH MR DANNER IN A LENGTHY DISPUTE OVER RACIAL DISCRIMINATION WITHIN THE COMPANY BY BUYING MR DANNER'S HOLDINGS ANALYSTS SAID SHONEY'S COULD SHOW INVESTORS THAT MR DANNER NO LONGER HAD A HAND IN RUNNING THE FIRM IN RECENT MONTHS HOWEVER SHONEY'S STOCK PRICE HAS SLIPPED TO ABOUT 18 A SHARE AS THE JUNE 30 DEADLINE FOR COMPLETING THE TRANSACTION DREW NEAR NEITHER PARTY COULD REACH AN AGREEMENT MR HENRY SAID MR DANNER WAS OFFERED A NUMBER OF DIFFERENT ALTERNATIVES WHICH HE DID NOT ACCEPT MR HENRY DIDN'T ELABORATE MR DANNER 68 YEARS OLD SHONEY'S LARGEST SHAREHOLDER WITH A 12 STAKE IN THE COMPANY EXPRESSED SURPRISE THAT THE DEAL HAD FALLEN THROUGH AND ACCUSED THE COMPANY OF USING DODGE HEDGE AND DELAY TACTICS BOTH PARTIES SAID NO NEW NEGOTIATIONS HAVE BEEN PLANNED MR DANNER SHONEY'S CHAIRMAN AND CHIEF EXECUTIVE FROM 1976 TO 1989 RESIGNED FROM THE COMPANY'S BOARD YESTERDAY HE PREVIOUSLY SAID HE WOULDN'T STAND FOR REELECTION TO THE BOARD IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SHONEY'S ROSE 25 CENTS A SHARE TO 1850 9307010021 930701 LETTERS TO THE EDITOR YOUR DINNER LED A HORRIBLE LIFE IN SHARING SOME THOUGHTS ON PIGS ANIMAL FARMS REVIEW & OUTLOOK JUNE 14 YOUR READERS CAN HARDLY BE EXPECTED TO UNDERSTAND THE OUTRIGHT HORROR INFLICTED ON ANIMALS IN FACTORY FARMS WHEN YOU PRESENT THE ISSUE IN TERMS THAT NEVER GET MORE VIVID THAN SIZE AND SCALE INTEGRATION OF PROCESSES BOOSTING CHOICES TO CONSUMERS PERHAPS YOUR WRITER HAS NEVER HAD AN OPPORTUNITY TO SEE THIS PERVERSION OF NATURE FIRSTHAND IN MORE REALISTIC TERMS SIZE AND SCALE MEANS RELEGATING ANIMALS TO THE STATUS OF MACHINE PARTS THIS TRANSLATES INTO HUNDREDS UPON HUNDREDS OF SOWS PARKED LIKE SO MANY CARS IN NARROW STEEL CRATES IN DARK BUILDINGS THE SIZE OF AIRCRAFT HANGARS VEAL CALVES LIVING OUT THEIR LIVES IN DARK WOODEN CRATES SO SMALL THEY ARE UNABLE TO EVEN TURN AROUND EGGLAYING HENS CONFINED TO AN AREA SMALLER THAN HALF THIS PAGE ANIMALS SO STRESSED THAT ONLY A CONSTANT DIET OF DRUGS KEEPS THEM ALIVE UNTIL THEY ARE SHIPPED OR DRAGGED TO THEIR SLAUGHTER YOU SUGGEST THAT THIS INSTITUTIONALIZED CRUELTY MAY BE JUSTIFIABLE BECAUSE IT IS COSTEFFECTIVE BUT SO IS PRISON LABOR AND CHILD LABOR CLEARLY THERE'S MORE TO COMMERCE THAN COSTEFFECTIVENESS AT ANY PRICE FURTHERMORE THERE WOULD BE NO NEED FOR THE TEARJERKING ADS YOUR WRITER DERIDES IF THE MEDIA WERE PROVIDING READERS WITH THE FACTS ABOUT CURRENT PRACTICES IN ANIMAL AGRICULTURE BUT MOST OF THE CONSUMING PUBLIC HASN'T A CLUE AS TO WHAT KIND OF HELL THEIR DINNER WENT THROUGH ON THE WAY TO THE TABLE SHOULDN'T OUR SOCIETY BE BASED ON INFORMED CONSENT BEYOND SATISFYING OUR ADDICTION MEAT HAS NO DEMONSTRABLE BENEFITS THE CONSUMPTION OF MEAT IS LINKED TO CANCER HEART DISEASE AND DIABETES AND IT INFLICTS HORRENDOUS PAIN ON THE MORE THAN SIX BILLION ANIMALS EATEN IN THIS COUNTRY EACH YEAR AT THE VERY LEAST WE SHOULD BE ABLE TO AGREE THAT WE NEED TO ENCOURAGE INDUSTRY AND GOVERNMENT TO DEVELOP PROMOTE AND IMPLEMENT SYSTEMS THAT REDUCE FARM ANIMAL SUFFERING AS LONG AS PEOPLE CONTINUE TO EAT THEM YOUR EDITORIAL ACCUSED ANIMAL RIGHTS PEOPLE WHO POINT OUT THE POTENTIAL DISEASE PROBLEMS RELATED TO ANIMAL FACTORIES AS FEARMONGERING IN 1964 RACHEL CARSON WROTE IN THE FOREWORD TO RUTH HARRISON'S BOOK ANIMAL MACHINES AS A BIOLOGIST WHOSE SPECIAL INTERESTS LIE IN THE FIELD OF ECOLOGY OR THE RELATION BETWEEN LIVING THINGS AND THEIR ENVIRONMENT I FIND IT INCONCEIVABLE THAT HEALTHY ANIMALS CAN BE PRODUCED UNDER THE ARTIFICIAL AND DAMAGING CONDITIONS THAT PREVAIL IN THESE MODERN FACTORY LIKE INSTALLATIONS WHERE ANIMALS ARE GROWN AND TURNED OUT LIKE SO MANY INANIMATE OBJECTS THE CROWDING OF BROILER CHICKENS THE REVOLTING INSANITARY CONDITIONS IN THE PIGGERIES THE LIFELONG CONFINEMENT OF LAYING HENS IN TINY CAGES DISEASES SWEEP THROUGH THESE ESTABLISHMENTS WHICH INDEED ARE KEPT GOING ONLY BY THE CONTINUOUS ADMINISTRATION OF ANTIBIOTICS DISEASE ORGANISMS THEN BECOME RESISTANT TO THE ANTIBIOTICS YOU APPLAUD THE FACT THAT THE PRICE OF POULTRY AND PORK HAVE FALLEN BUT THE PRICE OF HEALTH CARE KEEPS RISING THE COST OF CHICKEN BEEF AND PORK FILLED WITH ANTIBIOTICS PESTICIDES AND HORMONES IS TRANSFERRED TO OUR HEALTH BILL YOU NOTED THAT THE HUMANE FARMING ASSOCIATION OPPOSED REARING HOGS IN A CONTROLLED ENVIRONMENT THEIR ETHOLOGIST DR ALEX STOLBA OBSERVED THAT DOMESTIC PIGS LIVING IN A NATURAL ENVIRONMENT SPEND 21 OF THE DAY ROOTING I WONDER IF DR STOLBA HAS ANY IDEA WHAT A PIG ROOTING 21 OF HIS TIME DOES TO THE NATURAL ENVIRONMENT 9307010020 930701 LEISURE & ARTS FILM A TROUBLED GAMBLER EVIL LAWYERS BY JULIE SALAMON A CARD PLAYER LOSES THE 10000 STAKE HE'S BORROWED PLUS 10000 MORE HE DOESN'T HAVE IN A POKER GAME HE AND THE MAN WHO PUT UP THE MONEY AGREE TO PAY THE WINNERS OWNERS OF A LARGE COUNTRY ESTATE BY BUILDING A LARGE STONE WALL ACROSS A FIELD THE WALL HAS NO REAL PURPOSE EXCEPT TO GIVE THE PEOPLE BUILDING IT SOMETHING TO DO IN ORDER TO PAY OFF THEIR DEBT IT MAY BE DIFFICULT TO IMAGINE A MOVIE LARGELY TAKEN UP WITH THE CARRYING OUT OF THIS POINTLESS DIFFICULT TASK AND ITS PHILOSOPHIC IMPLICATIONS BUT THE MUSIC OF CHANCE IS THAT RARE THING A MOVIE CARRIED ALONG BY AN UNANSWERABLE INTELLECTUAL RIDDLE THAT MANAGES TO BE ENTERTAINING AS WELL AS PROVOCATIVE PHILIP HAAS WHO PREVIOUSLY HAS DIRECTED DOCUMENTARIES ABOUT ARTISTS AND THEIR WORK HAS MADE AN IMPRESSIVE FEATURE DEBUT WITH THIS STRIKING ADAPTATION OF PAUL AUSTER'S NOVEL WITH HIS WIFE BELINDA HAAS WHO COAUTHORED THE SCRIPT AND EDITED THE FILM HE HAS TRANSLATED MR AUSTER'S COOLLY MACABRE WIT FOR THE SCREEN WITH ORIGINALITY AND A MISCHIEVOUS INTELLIGENCE IT'S A HIGHLY THEATRICAL FILM DELIBERATELY SYMBOLIC WITHOUT BEING HEAVYHANDED THANKS IN GREAT PART TO PHILLIP JOHNSTON'S CLEVER MUSICAL SCORE AND THE INTRIGUING PRODUCTION DESIGN BY HUGO LUCZYCWYHOWSKI IN THE WORLD OF MUSIC OF CHANCE EVERYTHING HAS A PURPOSE OR NONE DEPENDING ON WHETHER YOU BELIEVE IN DESTINY OR CHANCE THOUGH THE STORY OFTEN TAKES ON THE TRAPPINGS OF A SUSPENSE PICTURE MR AUSTER CONSTANTLY CONFOUNDS EXPECTATIONS SMOKING GUNS MAY APPEAR OR NOT AND EVEN WHEN THEY DO THEY PROBABLY WON'T MEAN WHAT THEY WOULD IN A MORE CONVENTIONAL DRAMA MANDY PATINKIN PLAYS THE EXISTENTIAL HERO JIM NASHE A CALM LACONIC MAN WHO HAS TAKEN SOLACE FROM HIS TROUBLES IN A RED BMW WITH A GOOD STEREO SYSTEM ONE DAY HE PICKS UP A SCRAWNY YOUNG MAN WANDERING BY THE SIDE OF A COUNTRY ROAD HE'S WEARING AN OVERSIZED SUIT THAT'S BRIGHT BLUE AND SPLATTERED WITH BLOOD HE EXPLAINS THAT HE'S A GAMBLER UNFAIRLY ACCUSED OF BEING A CON MAN AND UNJUSTLY SMACKED AROUND FOR IT HE MENTIONS THAT HE HAS A DATE TO PLAY CARDS WITH TWO RICH MEN HE'S BEATEN BEFORE BUT HE NEEDS 10000 LOOKING SCRAWNY WITH HIS HAIR DYED DARK BROWN AND GREASED BACK JAMES SPADER AT FIRST SEEMS TO BE PLAYING THE CARD PLAYER AS IF HE WERE A SMOOTHTALKING CON MAN IT'S THE KIND OF EXAGGERATED PERFORMANCE YOU'D EXPECT TO SEE IN ACTING CLASS BUT HE BECOMES SOMETHING MORE A MAN USING THE ONLY SYSTEM HE KNOWS TO GET BY A SYSTEM WITH ITS OWN SUPERSTITIONS AND RULES OF BEHAVIOR NASHE BELIEVES TOO MUCH IN FATE TO BE SUPERSTITIOUS OR SO HIS BEHAVIOR INDICATES HE SPEAKS LITTLE HE TRUSTS HIS LAST 10000 TO THE GAMBLER AND THEY GO TOGETHER TO THE CARD GAME WHERE THEY LOSE THE MONEY AND ARE FORCED TO BUILD THE WALL FLOWER AND STONE ARE THE TWO RICH MEN WHO ENTRAP THE GAMBLER THEY INVITE HIM TO A REMATCH WITHOUT LETTING HIM KNOW THEY'VE TAKEN POKER LESSONS FROM A MASTER FLOWER IS FAT STONE IS SKINNY THE ACTORS PLAYING THEM ARE OLD PROS CHARLES DURNING AND JOEL GREY THEY KNOW HOW TO MAKE THEIR CHARACTERS' FORCED JOVIALITY AND WHITE SUITS AND INSISTENCE THAT THEY WON THE LOTTERY THROUGH CALCULATION NOT CHANCE SEEM VERY MENACING AND VERY FUNNY AT THE SAME TIME THIS MAY SOUND LIKE A TWILIGHT ZONE EPISODE THE CARD GAME THAT STARTS AS A HUSTLE AND ENDS AS A NIGHTMARE THAT TWILIGHT ZONE FEELING DEEPENS WHEN FLOWER AND STONE GIVE THEIR GUESTS A TOUR OF THE HOUSE THAT LEADS TO THE CITY OF THE WORLD A VASTLY DETAILED TOY LANDSCAPE OF STONE'S LIFE THERE HE IS IN PLASTIC MINIATURE PLAYING BASEBALL AS A BOY THERE HE IS WITH A TINY PLASTIC VERSION OF HIS COMPANION FLOWER AFTER THEY'VE WON THE LOTTERY BUT THERE'S NO ZIPPY TWIST HERE TO TIE EVERYTHING UP NEATLY IN THE WITTILY UNNERVING MUSIC OF CHANCE NOT EVEN PORTENTS OF DOOM ARE WHAT THEY SEEM THE FIRM ON THE OTHER HAND IS EXACTLY WHAT YOU MIGHT EXPECT AND THAT IS JUST FINE ACTUALLY SYDNEY POLLACK'S ADAPTATION OF JOHN GRISHAM'S BESTSELLER IS MORE THAN YOU MIGHT EXPECT IT'S REALLY TWO MOVIES FOR THE PRICE OF ONE THE FIRM I ESPECIALLY LIKED IS A TEXTURED SUSPENSE PICTURE A SMALL PART OF THE 154MINUTE WHOLE THAT'S PEOPLED BY COLORFUL COMPLICATED CHARACTERS PLAYED BY MARVELOUS ACTORS NOTABLY HOLLY HUNTER GARY BUSEY DAVID STRATHAIRN AND GENE HACKMAN THE OTHER MUCH BIGGER PICTURE IS A PLODDING BUT ENGAGING MORALITY TALE ABOUT EVIL FANCY LAWYERS IN CAHOOTS WITH THE MOB AND WITH THE BRIGHT YOUNG MAN WHO BRINGS THEM THE LAWYERS DOWN TOM CRUISE DOES WHAT WE'VE SEEN HIM DO BEFORE MAKE THE TRANSITION FROM COCKY TO CHASTENED WITH ADMIRABLE FRESHNESS PUT THE TWO TOGETHER AND YOU HAVE THE PERFECT SUMMER PICTURE FOR GROWNUPS IT'S SMART GLOSSY AND ENTERTAINING IS THE DISNEY VERSION OF SNOW WHITE AND THE SEVEN DWARFS THE PERFECT SUMMER MOVIE FOR KIDDIES THERE HAS BEEN MUCH DEBATE ABOUT WHETHER DOCILE SNOW IS A POSITIVE ROLE MODEL FOR LITTLE GIRLS AND WHETHER IT IS GOOD FOR LITTLE BOYS TO IDENTIFY WITH THE DWARFS MESSY CREATURES INCAPABLE OF WASHING THEMSELVES UNLESS A FEMALE TELLS THEM TO AND ISN'T IT HARMFUL FOR CHILDREN TO SEE YET ANOTHER STEPMOTHER CAST AS AN EVIL WITCH BE BRAVE LET THE KIDS CONFRONT SNOW WHITE IN ALL ITS BEAUTY AND TERROR AND POLITICAL INCORRECTNESS IT'S QUITE AMAZING VIDEO TIP IN 1941 FOUR YEARS AFTER DISNEY'S CARTOON CLASSIC WAS RELEASED THE GREAT COMEDY WRITERS BILLY WILDER AND CHARLES BRACKETT WROTE THEIR OWN VERSION OF THE SNOW WHITE STORY BALL OF FIRE BARBARA STANWYCK PLAYS A BURLESQUE QUEEN ENLISTED BY SEVEN PROFESSORS TO HELP THEM REWRITE THE ENCYCLOPEDIA SHE TRANSLATES THE SLANG AND FALLS IN LOVE WITH GARY COOPER IT'S A KICK 9307010019 930701 RALLY IN CYCLICAL ISSUES IS EXPECTED TO CONTINUE INTO THE THIRD QUARTER BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE ECONOMY MAY BE PLODDING BUT STOCKS THAT BENEFIT FROM THE SLOW RECOVERY CONTINUE TO REWARD INVESTORS FOR THREE CONSECUTIVE QUARTERS ECONOMICALLY SENSITIVE STOCKS HAVE TURNED IN THE STRONGEST PERFORMANCES A TREND THAT ANALYSTS SAY WILL CONTINUE IN THE THIRD QUARTER THERE IS GOOD NEWS FOR THE STOCKS THAT LAGGED BADLY TOO SOME ANALYSTS EXPECT SUCH TURKEYS AS TOBACCO AND RETAILING TO PERK UP A LITTLE IN COMING QUARTERS BUT WATCH OUT FOR PRECIOUS METALS STOCKS THAT HAVE BEEN RISING FOR TWO QUARTERS WITH INFLATION FEARS SUBSIDING ANALYSTS WARN THEY MAY BE HEADED FOR A SETBACK WHILE CYCLICAL STOCKS WILL CONTINUE TO LEAD THE PRICE PARADE THIS QUARTER ANALYSTS CAUTION THAT LAST QUARTER'S STELLAR PERFORMERS SUCH AS HEAVY MACHINERY AND OIL DRILLING WILL LIKELY BE SUPPLANTED THIS QUARTER BY OTHER CYCLICAL STOCKS THAT HAVEN'T YET RISEN SHARPLY SUCH AS PAPER PRODUCTS AND CHEMICALS A LOT OF WINNERS IN THE PAST QUARTER PRECIOUS METALS OIL TOYS ENTERTAINMENT ALUMINUM WERE STOCKS THAT NORMALLY DO WELL WHEN EARNINGS BECOME MORE IMPORTANT TO MOVES IN PRICES SAYS JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH THE GENERAL THRUST WILL CONTINUE BUT THE INDUSTRY GROUPS THAT LED THE WAY WILL CHANGE A BIT ONE GROUP THAT MR SOLLOWAY EXPECTS TO LAG A LITTLE IN THE THIRD QUARTER IS HEAVY MACHINERY WHICH SOARED 245 LAST QUARTER THE JUMP WAS LARGELY A RESULT OF A 27 GAIN IN CATERPILLAR A CHIEF COMPONENT OF THE GROUP I DON'T EXPECT TO SEE CATERPILLAR REPEAT ITS SECONDQUARTER PERFORMANCE MR SOLLOWAY SAYS OTHER GROUPS THAT HAVE YET TO GET MOVING IN A VERY CERTAIN FASHION WILL MAKE BETTER INVESTMENTS AT THIS TIME HE LIKES THE OUTLOOK FOR STEEL STOCKS IN LIGHT OF THE COMMERCE DEPARTMENT'S RECENT DECISION TO LEVY PENALTIES ON A NUMBER OF COUNTRIES FOR DUMPING STEEL ON THE US MARKET AND FOR SUBSIDIZING THEIR STEEL EXPORTS THE CLINTON ADMINISTRATION'S MOVE TOWARD PROTECTIONISM WILL HURT OVER THE LONG HAUL BUT IN THE SHORT RUN IT WILL HELP THE STOCKS MR SOLLOWAY SAYS BESIDES HEAVY INDUSTRIAL STOCKS TECHNOLOGY ISSUES LOOK PROMISING IN THE THIRD QUARTER SAYS JOSEPH BATTIPAGLIA CHIEF INVESTMENT STRATEGIST AT GRUNTAL & CO HE NOTES THAT THE STOCK MARKET LAST QUARTER REFLECTED THE TREND TOWARD LINKUPS BETWEEN TELECOMMUNICATIONS CABLE AND ENTERTAINMENT COMPANIES INDEED COMMUNICATIONS COMPANIES LED BY AMERICAN TELEPHONE & TELEGRAPH AND MOTOROLA WERE TOP PERFORMERS DURING THE QUARTER AT THE SAME TIME ENTERTAINMENT SURGED PARTLY ON STRENGTH FROM TIME WARNER WHICH ANNOUNCED AN ALLIANCE WITH U S WEST THOSE COMPANIES EXPLOITING NEW TECHNOLOGICAL APPLICATIONS WILL CONTINUE TO BE THE BEST PERFORMERS SAYS MR BATTIPAGLIA HE PREDICTS THAT SEMICONDUCTORS WILL BOUNCE BACK THIS QUARTER THE GROUP WAS FLAT LAST QUARTER AFTER SOARING NEARLY 30 IN THE FIRST QUARTER HE DISAGREES WITH A PREVAILING VIEW THAT CHIP MAKERS FACE A SUMMER SLOWDOWN ARGUING THAT PRODUCTION WILL REMAIN HIGH TO SUPPORT DEMAND FROM PERSONAL COMPUTER MAKERS AND FROM GROWTH IN INTERACTIVE TECHNOLOGY SECONDQUARTER EARNINGS WILL BE GOOD AND WILL GET THE BALL MOVING AGAIN MR BATTIPAGLIA SAYS SO SEMICONDUCTORS WILL OUTPERFORM IN THE THIRD QUARTER HE POINTS TO RECENT EARNINGS RESULTS FROM MICRON TECHNOLOGY AND NATIONAL SEMICONDUCTOR AS PREVIEWS OF THE PROFIT OUTLOOK FOR THE GROUP MICRON RECENTLY REPORTED THAT IT EARNED 73 CENTS A SHARE IN ITS FISCAL THIRD QUARTER ENDED JUNE 3 FAR ABOVE FOUR CENTS A SHARE A YEAR EARLIER AND ABOVE ANALYSTS' ESTIMATES OF 41 CENTS NATIONAL SEMICONDUCTOR SAID ITS EARNINGS JUMPED TO 35 CENTS A SHARE IN ITS FISCAL FOURTH QUARTER ENDED MAY 30 FROM 22 CENTS A YEAR EARLIER ANALYSTS HAD FORECAST EARNINGS OF 27 CENTS A SHARE MR BATTIPAGLIA THINKS PRECIOUS METALS ARE DUE FOR A TUMBLE IN THE NEW QUARTER FEARS OF INFLATION HAVE PUSHED PRICES OF GOLD STOCKS SHARPLY HIGHER FOR TWO QUARTERS NOW A PULLBACK IS LIKELY MR BATTIPAGLIA SAYS BECAUSE SOME COUNTRIES SUCH AS CHINA AND RUSSIA WILL BE ENTICED BY HIGHER GOLD PRICES TO SELL SOME OF THEIR STOCKPILES FOR A PROFIT A GREAT SUPPLY COULD BE BROUGHT ONTO THE MARKET TO PUSH PRICES BACK HE SAYS DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS PREDICTS INDUSTRY STOCK GROUPS WILL CONTINUE TO EXPERIENCE PRICE SWINGS THAT ARE GREATER THAN MOVEMENTS IN THE MAJOR INDEXES WOULD SUGGEST AN OVERRIDING THEME IS A LOT OF INTRAGROUP VOLATILITY BUT LITTLE VOLATILITY IN THE OVERALL MARKET HE SAYS INDEED WHILE THE PERFORMANCE OF THE STOCK GROUPS SPAN THE SPECTRUM OF LARGE LOSSES AND GAINS THE DOW JONES EQUITY MARKET INDEX WAS VIRTUALLY UNCHANGED DURING THE QUARTER A PRIMARY EXAMPLE OF ONE VOLATILE GROUP IS HEALTH CARE WHICH BOUNCED BACK AFTER BEING HURT BY UNCERTAINTY ABOUT THE CLINTON ADMINISTRATION'S PLANS FOR REFORM OF THE INDUSTRY MR SHULMAN PREDICTS HEALTH CARE'S ROLLERCOASTER RIDE ISN'T OVER PEOPLE WILL BE GOING BACK AND FORTH ON THE GROUP HE SAYS THESE STOCKS WILL GO UP AND DOWN ON DEVELOPMENTS IN WASHINGTON ONE GROUP THAT DELIGHTED INVESTORS LAST QUARTER WAS THE CASINOS STOCKS WHICH GAINED PARTLY ON EXPECTATIONS OF A BOOM IN RIVERBOAT GAMBLING BUT MR SHULMAN BELIEVES CASINO STOCKS WON'T HIT THE JACKPOT AGAIN THIS QUARTER SOON THERE WILL BE A GAMBLING BOAT ON EVERY BODY OF WATER SO IT BECOMES A ZERO SUM GAME HE SAYS THE POOREST PERFORMERS LAST QUARTER WERE LARGE CONSUMER STOCKS THAT WERE THE DARLINGS OF THE 1980S SUCH AS TOBACCO FOOTWEAR AND RETAILERS MR SHULMAN NOTES THAT A SHIFT AWAY FROM THOSE STOCKS CONTINUES AS INVESTORS FOCUS ON THE DOG STOCKS OF THE 1980S SUCH AS HEAVY MACHINERY AND OIL DRILLING THE TONE FOR THE TOBACCO GROUP WAS SET ON THE SECOND DAY OF THE SECOND QUARTER WHEN PHILIP MORRIS ANNOUNCED IT WAS CUTTING THE PRICE OF ITS CIGARETTES AND EXPECTED A STEEP DECLINE IN EARNINGS FOR THE YEAR THE PRESSURE ON TOBACCO STOCKS WAS SO SEVERE DURING THE QUARTER THAT MR SHULMAN EXPECTS SOME IMPROVEMENT IN THEIR PRICES THIS QUARTER THEY WON'T BE STELLAR PERFORMERS BUT THEY'LL MOVE OFF THE BOTTOM TO THE MIDDLE RANGE OF PERFORMERS HE SAYS UNDERLYING THE DROP IN BROADLINE RETAILERS FOR THE QUARTER WAS THE SAGGING STOCK PRICE OF WALMART STORES ANOTHER POPULAR STOCK IN THE 1980S WALMART SANK ABOUT 17 DURING THE QUARTER AS THE COMPANY FACED STIFFER COMPETITION AND SLUGGISH CONSUMER DEMAND LIKE PHILIP MORRIS AND THE TOBACCO STOCKS WALMART AND THE RETAILERS MAY SEE SOME IMPROVEMENT THIS QUARTER MR SHULMAN PREDICTS IF THE ECONOMY DOES A LITTLE BETTER THE RETAIL GROUP WILL BEGIN TO DO A LITTLE BETTER TOO HE SAYS 9307010018 930701 RYDER SYSTEM PLANS TO SPIN OFF AVIATION LINES MOVE CAPS A RESTRUCTURING BEGUN IN 1989 CHARGE OF 1694 MILLION SET BY NIKHIL DEOGUN STAFF REPORTER OF THE WALL STREET JOURNAL RYDER SYSTEM INC SAID IT WILL SPIN OFF ITS AVIATION BUSINESS INTO A NEW PUBLIC COMPANY A MOVE THAT CAPS A RESTRUCTURING EFFORT THAT STARTED FOUR YEARS AGO RYDER'S AVIATION SEGMENT PIECED TOGETHER BY THE TRANSPORTATION CONCERN AS PART OF A SERIES OF ACQUISITIONS IN THE 1980S MAINTAINS AIRCRAFT ENGINES AND DISTRIBUTES AVIATION PARTS AND SUPPLIES THE BUSINESS HAD 117 BILLION IN ANNUAL REVENUE AND 12 BILLION IN ASSETS LAST YEAR THE NEW COMPANY WHICH WILL BE BASED IN DALLAS WILL INCLUDE THREE DIVISIONS RYDER AIRLINE SERVICES RYDER AVIALL AND INVENTORY LOCATOR SERVICE RYDER BASED IN MIAMI SAID THE NEW COMPANY WILL BE FORMED THROUGH A PRORATA STOCK DISTRIBUTION TO ALL SHAREHOLDERS RYDER ALSO PLANS TO TAKE AN AFTERTAX RESTRUCTURING CHARGE OF 1694 MILLION FOR THE SECOND QUARTER TREATING THE AVIATION SEGMENT AS A DISCONTINUED OPERATION FOR THE YEAREARLIER QUARTER RYDER HAD NET INCOME OF 376 MILLION OR 47 CENTS A SHARE THE MOVE WAS APPLAUDED ON WALL STREET WHERE ANALYSTS HAD LONG QUESTIONED THE WISDOM OF WHAT IS ESSENTIALLY A TRUCKING AND VEHICLELEASING COMPANY COMPETING IN THE AVIATION INDUSTRY RYDER'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER M ANTHONY BURNS ACKNOWLEDGED IN AN INTERVIEW THAT THE WORLD OF AVIATION HAS CHANGED SINCE THE 1980S THAT CHANGE CAME WITHIN THE AIRLINE INDUSTRY WHICH HAS BEEN BATTERED BY FARE WARS OVERCAPACITY AND STEEP LOSSES THE TURMOIL WAS REFLECTED IN RYDER'S AVIATION BUSINESS WHOSE OPERATING PROFITS WOULD RISE ONE YEAR AND FALL THE NEXT IN 1992 THE SEGMENT'S EARNINGS PLUNGED 46 TO 251 MILLION FROM 465 MILLION A YEAR EARLIER WHILE THE AVIATION BUSINESS ACCOUNTED FOR 23 OF RYDER'S 52 BILLION IN REVENUE LAST YEAR IT HAS BEEN A DRAG ON EARNINGS AND THE OUTLOOK OF THE STOCK SAID REMY FISHER VICE PRESIDENT AT KEMPER FINANCIAL SERVICES SHE DID QUESTION HOWEVER THE TIMING OF THE MOVE NOTING THAT RYDER MIGHT HAVE BENEFITED BY WAITING FOR AN UPSWING IN THE AVIATION INDUSTRY ESPECIALLY IN THE AIRCRAFTOVERHAUL BUSINESS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY RYDER SHARES CLOSED AT 3125 UP 25 CENTS RYDER OF LATE HAS BEEN IN THE BUSINESS OF SHEDDING OPERATIONS SINCE 1989 IN ADDITION TO THE AVIATION SEGMENT THE COMPANY HAS JETTISONED 11 BUSINESSES INCLUDING AN INSURANCESERVICES OUTFIT AN AIRCRAFTLEASING BUSINESS AND A FREIGHT OPERATION INCLUDING THE AVIATION BUSINESS SOME 19 BILLION IN ASSETS WILL HAVE BEEN SHED AND RYDER WILL HAVE CUT SOME 9000 PEOPLE FROM ITS WORK FORCE WHICH PEAKED AT 45000 IN 1988 MR BURNS DEFENDED RYDER'S STRATEGY IN THE 1980S OF GROWING THROUGH ACQUISITIONS CONGLOMERATES WERE IN HE SAID SIMPLY BUT HE ACKNOWLEDGED THAT THERE'S BEEN A SHIFT IN ATTITUDE TO SHARPLY FOCUS A COMPANY'S BUSINESS ANTHONY M HATCH AN ANALYST AT PAINEWEBBER INC NOTED THE RYDER OF A FEW YEARS AGO WOULD HAVE THOUGHT THEY COULD HAVE GROWN OUT OF THE DECLINE IN AVIATION EARNINGS NOW HE SAID THE COMPANY HAS TACKLED THE PROBLEM HEAD ON RYDER SAID IT HOPES TO COMPLETE THE SPINOFF BY THE END OF THE YEAR MR BURNS SAID HE EXPECTS THE TOTAL OF DIVIDENDS TO BE PAID BY RYDER AND THE NEW COMPANY TO EQUAL OR EXCEED RYDER'S CURRENT ANNUAL DIVIDEND OF 60 CENTS A SHARE THE NEW COMPANY AS YET UNNAMED WILL BE SMALLER THAN THE CURRENT OPERATION BECAUSE OF PLANS TO SELL OFF SELECTED OPERATIONS RYDER SAID IT INTENDS TO SELL RYDER AVIALL'S BUSINESS AVIATION AND HELICOPTERENGINE REPAIR BUSINESS RYDER AVIALL'S AIRCRAFT AND TERMINALSERVICES OPERATION AT LOVE FIELD IN DALLAS AND RYDER AIRLINE SERVICES' AVIATION SALES UNIT IN MIAMI 9307010017 930701 UMW REACHES LABOR PACT WITH BARGAINING ALLIANCE WASHINGTON THE UNITED MINE WORKERS REACHED AN AGREEMENT WITH THE INDEPENDENT BITUMINOUS COAL BARGAINING ALLIANCE GRANTING JOB SECURITY TO 7500 UNION MEMBERS IN THREE COMPANIES THE PACT ALSO STRENGTHENS THE UNION'S POSITION AGAINST NONIBCBA COMPANIES IT IS TARGETING THROUGH A SELECTIVE STRIKE IBCBA'S DRUMMOND CO JIM WALTER RESOURCES INC AND USX CORP'S US STEEL MINING CO MADE A PACT WITH THE UNION WHICH WILL AFFECT WORKERS IN ALABAMA PENNSYLVANIA AND WEST VIRGINIA THE IBCBA WAS ESTABLISHED LAST YEAR WITH FOUR MIDSIZE COMPANIES MARKING A SIGNIFICANT CHANGE IN THE 40YEAR HISTORY OF NATIONWIDE COLLECTIVE BARGAINING IN THE COAL INDUSTRY THERE HAS BEEN NO CHANGE IN NEGOTIATIONS WITH THE BITUMINOUS COAL BARGAINING ALLIANCE SOME OF WHOSE MEMBERS THE UNION IS TARGETING THROUGH A SELECTIVE STRIKE BEGUN MAY 10 WHICH INVOLVES 14000 WORKERS AN ANNOUNCEMENT REGARDING THE FOURTH IBCBA MEMBER WESTMORELAND COAL CO IS EXPECTED TOMORROW ALONG WITH MORE DETAILS ABOUT YESTERDAY'S AGREEMENT 9307010016 930701 NEW YORK LEGISLATORS PUSH COMPETITIVEBIDDING BILL NEW YORK IN AN ATTEMPT TO CUT DOWN THE POSSIBLE USE OF INFLUENCE IN DETERMINING WHO UNDERWRITES THIS CITY'S DEBT OFFERINGS LEGISLATORS INTRODUCED A BILL REQUIRING COMPETITIVE BIDDING FOR SUCH CONTRACTS THE CURRENT NEW YORK CITY PRACTICE OF ALMOST EXCLUSIVELY UTILIZING PRIVATE NEGOTIATED TRANSACTIONS HAS CREATED A ROTTEN SYSTEM WHERE UNDERWRITERS FEEL PRESSURED TO MAKE LARGE POLITICAL CONTRIBUTIONS SAID ALAN HAVESI AN ASSEMBLYMAN FROM THE BOROUGH OF QUEENS WHO INTRODUCED THE BILL WITH NEW YORK WAYS AND MEANS CHAIRMAN SHELDON SILVER ALTHOUGH EVERY MUNICIPALITY IN NEW YORK STATE MUST USE COMPETITIVE BIDDING THE REQUIREMENT HAS BEEN WAIVED EACH YEAR FOR NEW YORK CITY SINCE THE FISCAL CRISIS OF THE 1970S THE CITY'S DEBT OFFERINGS RANGE FROM 4 BILLION TO 5 BILLION ANNUALLY THE NEW LEGISLATION COMES IN THE WAKE OF A RECENT FEDERAL PROBE INTO WHETHER MERRILL LYNCH & CO AND OTHER SECURITIES FIRMS MAY HAVE DONE FINANCIAL FAVORS FOR STATE POLITICIANS TO WIN UNDERWRITING BUSINESS RELATED TO A 29 BILLION SALE OF BONDS BY THE NEW JERSEY TURNPIKE AUTHORITY GOV JIM FLORIO OF NEW JERSEY ALSO RECENTLY ISSUED AN EXECUTIVE ORDER TO BAN NEGOTIATTED UNDERWRITING IN HIS STATE 9307010014 930701 OTC FOCUS NASDAQ STOCKS RISE AS 2ND QUARTER ENDS MANAGERS ENGAGE IN WINDOW DRESSING' BY MARY ROMANO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK OVERTHECOUNTER STOCKS ENDED ON A HIGHER NOTE ON THE LAST DAY OF THE SECOND QUARTER THE NASDAQ COMPOSITE INDEX ROSE 288 OR 041 TO 70395 ADVANCERS HANDILY BEAT DECLINERS 1601 TO 1133 NATIONAL MARKET SYSTEM VOLUME WAS 219534400 SHARES UP FROM 215815500 TUESDAY MARKET PLAYERS SAID THERE WAS A FLURRY OF BUYING AS MONEY MANAGERS ENGAGED IN ENDOFTHEQUARTER WINDOW DRESSING THAT'S WHEN A PORTFOLIO MANAGER DUMPS A LAGGING STOCK SO IT DOESN'T APPEAR ON QUARTERLY SHAREHOLDER STATEMENTS AND REPLACES IT WITH A BETTERPERFORMING ONE IT APPEARS THAT'S WHAT'S GOING ON SAID ROBERT ANTOLINI HEAD OF OTC TRADING AT DONALDSON LUFKIN & JENRETTE THEY'RE GETTING INTO THEIR PORTFOLIO WHAT THEY WANT AND LIGHTENING UP ON WHAT THEY DON'T WANT SAID JOE LOFTUS SENIOR VICE PRESIDENT OF NASDAQ TRADING AT LEHMAN BROTHERS IT'S LEANING TO THE BUY SIDE AS IT ALWAYS DOES AT THE END OF THE QUARTER ALTHOUGH THE COMPOSITE INDEX MOVED HIGHER A NUMBER OF SECTORS ENDED MIXED THE TECHNOLOGY GROUP WAS ONE WITH SEVERAL SOFTWARE ISSUES UP AND SOME HARDWARE STOCKS DOWN ORACLE CORP CLIMBED 3 TO 49 1/4 THE REDWOOD CITY CALIF COMPUTER SOFTWARE CONCERN POSTED RECORD FISCAL FOURTHQUARTER EARNINGS ORACLE'S GOOD NEWS WAS A BOON TO SYBASE WHICH GAINED 1 1/4 TO 74 1/4 AND INFORMIX WHICH JUMPED 1 1/2 TO 27 SYNOPTICS COMMUNICATIONS CLIMBED 1/4 TO 36 BUT MICROSOFT ENDED DOWN 1 TO 88 INTEL DROPPED 1 1/2 TO 55 AND NOVELL SLIPPED 3/4 TO 26 FINANCIAL STOCKS ALSO ENDED MIXED STATE STREET BOSTON CLIMBED 1/8 TO 33 1/8 BUT CINCINNATI FINANCIAL SLIPPED 1/8 TO 59 MARKET PLAYERS SAID COMMERCE DEPARTMENT FIGURES SHOWING THAT NEW FACTORY ORDERS FELL IN MAY FOR THE THIRD STRAIGHT MONTH WEREN'T DISCONCERTING TO INVESTORS FOR THE FIRST SIX MONTHS OF 1993 THE NASDAQ COMPOSITE INDEX WAS UP 399 FROM ITS CLOSE OF 67695 ON DEC 31 1992 THE INDEX ROSE 2 IN THE SECOND QUARTER DON HAYES DIRECTOR OF INVESTOR STRATEGY AT WHEAT FIRST BUTCHER & SINGER SAID HE EXPECTS THE NASDAQ MARKET TO REMAIN STRONG THROUGH THE SUMMER HE SAID THAT THE NATION'S ECONOMIC RECOVERY WILL BE FASTER THAN IS COMMONLY THOUGHT AND THAT SMALLCAPITALIZATION STOCKS WILL BENEFIT MR HAYES BELIEVES SUCH COMPANIES AS NATURE'S BOUNTY MCCAW CELLULAR AND RAINBOW TECHNOLOGIES WILL BE MAJOR MOVERS IN THE COMING MONTHS THEY'RE UP AND COMING AND THEY HAVE GOOD EARNINGS MOMENTUM HE SAID NATURE'S BOUNTY ADDED 1 1/2 TO CLOSE AT 24 MCCAW WAS UP 1 3/4 TO 46 AND RAINBOW TECHNOLOGIES GAINED 1 3/8 TO 28 5/8 AMONG OTHER ACTIVE NASDAQ ISSUES DELL COMPUTER LOST 1/4 TO 18 3/4 AND MCI COMMUNICATIONS GAINED 3/4 TO 57 1/2 THE INITIAL OFFERING OF SODAK GAMING ENDED THE DAY AT 21 3/4 THE OFFERING OF 33 MILLION COMMON SHARES WAS PRICED AT 16 THE COMPANY MARKETS AND DISTRIBUTES SLOT MACHINES TO INDIANOPERATED CASINOS ANCHOR BANCORP ROSE 1/8 TO 13 AN OFFERING OF FIVE MILLION COMMON SHARES WAS PRICED AT 12 1/2 HOLLYWOOD CASINO CLIMBED 2 1/4 TO 21 3/4 SALOMON BROTHERS BEGAN INVESTMENT COVERAGE OF THE GAMING COMPANY WITH A BUY RATING HOLLYWOOD CASINO BASED IN DALLAS OWNS AND OPERATES THE SANDS HOTEL AND CASINO IN ATLANTIC CITY NJ ZITEL A FREMONT CALIF MAKER OF HIGHSPEED COMMUNICATIONS PRODUCTS FELL 1 1/4 TO 4 3/8 ZITEL SAID IT EXPECTS A SIGNIFICANT LOSS FOR THE FISCAL THIRD QUARTER ENDED YESTERDAY WALL STREET HAD BEEN LOOKING FOR EARNINGS OF 15 CENTS A SHARE 9307010013 930701 UK'S HANSON TO BUY MAKER OF POLYETHYLENE QUANTUM CHEMICAL SHARES SURGE 52 ON NEWS DEAL IS VALUED AT 720 MILLION BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL HANSON PLC BETTING ON A CYCLICAL REBOUND IN PLASTICS PRICES SAID IT AGREED TO BUY TROUBLED QUANTUM CHEMICAL CORP THE US'S LARGEST POLYETHYLENE MAKER IN A STOCK SWAP VALUING QUANTUM AT 20 A SHARE OR 720 MILLION THE LONDONBASED CONGLOMERATE WHOSE DISPARATE HOLDINGS LOCATED MAINLY IN THE UK AND US RANGE FROM TOBACCO COAL AND CHEMICALS TO POTS PANS AND JACUZZIS SAID IT ALSO WOULD ASSUME LOSSPLAGUED QUANTUM'S 25 BILLION IN DEBT THE BUYOUT REPRESENTS A 60 PREMIUM ABOVE QUANTUM'S 1250 CLOSING SHARE PRICE TUESDAY ON THE NEW YORK STOCK EXCHANGE QUANTUM SHARES SOARED 52 IN HEAVY TRADING YESTERDAY FOLLOWING THE ANNOUNCEMENT CLOSING AT 19 UP 650 PRICES FOR THE NEW YORKBASED COMPANY'S HIGHYIELD DEBT ISSUES ALSO JUMPED HANSON SHARES TRADED IN LONDON AT 226 1/2 PENCE 343 UP FOUR PENCE DESPITE THE JUBILANT INVESTOR REACTION SOME ANALYSTS CAUTIONED THAT QUANTUM'S WILLINGNESS TO SELL OUT TO HANSON INDICATES THAT QUANTUM EXECUTIVES MAY HAVE CONCLUDED THAT THE REBOUND IN PLASTICS PRICES MAY BE A FEW YEARS FURTHER INTO THE FUTURE THAN THEY HAD EXPECTED LAST YEAR JOHN H STOOKEY QUANTUM CHAIRMAN DENIED THAT THE COMPANY HAS SOURED ON POLYETHYLENE'S PROSPECTS HE SAID THIS GIVES OUR SHAREHOLDERS THE OPPORTUNITY TO GET IN HAND NOW A SIGNIFICANT PERCENTAGE OF WHAT THEY MIGHT HAVE HOPED TO GET OUT OF THE STOCK IN A FEW YEARS' TIME MR STOOKEY SAID IT REMAINS TO BE SEEN WHETHER HE RETAINS HIS CURRENT POST THE PROPOSED TAXFREE SWAP OF 1176 OF NEWLY ISSUED HANSON AMERICAN DEPOSITARY SHARES FOR EACH QUANTUM SHARE REQUIRES THE APPROVAL OF TWOTHIRDS OF QUANTUM'S SHAREHOLDERS DAVID CLARKE DEPUTY CHAIRMAN AND CHIEF EXECUTIVE OF HANSON'S US ARM SAID THE COMPANY BELIEVED THE DOWNTURN IN THE POLYETHYLENE BUSINESS WAS NEARING AN END HE ADDED THAT WHILE IT IS IMPOSSIBLE TO PRECISELY TIME A REBOUND IN SUCH A PRODUCT THIS IS A TRAIN YOU HAVE TO CATCH BEFORE IT LEAVES THE STATION THE RISK THAT HANSON IS A YEAR OR TWO EARLY IN BUYING QUANTUM IS MORE THAN OUTWEIGHED BY THE POTENTIAL PAYOFF ONCE RESURGENT PLASTICS DEMAND AND TIGHTENING SUPPLIES SEND PLASTICS PRICES CLIMBING MR CLARKE SAID AT THE PEAK OF THE LAST PLASTICS CYCLE IN 1988 QUANTUM'S OPERATING PROFIT TOTALED ABOUT 760 MILLION OR 12 1/2 TIMES 1992'S OPERATING PROFIT OF 61 MILLION PAUL RAMAN A SECURITIES ANALYST WITH SG WARBURG & CO IN NEW YORK PREDICTED THAT QUANTUM'S SHARE PRICE AT THE NEXT CYCLICAL PEAK WOULD BE ABOUT 30 BUT HE ADVISED INVESTORS NOT TO HOLD THEIR BREATH WHILE WAITING FOR A RECOVERY THE 20 A SHARE HANSON OFFER IS A GOOD DEAL FOR SHAREHOLDERS SINCE THE VISIBILITY FOR IMMINENT RECOVERY IN THE POLYETHYLENE MARKET APPEARS TO BE FADING HE SAID HANSON WITH ABOUT 12 BILLION IN CASH ON ITS BALANCE SHEET SAID IT INTENDED TO PAY DOWN OR REFINANCE QUANTUM'S DEBT LOAD WITH AN AVERAGE YIELD OF MORE THAN 10 AT RATES CLOSER TO HANSON'S 5 BORROWING COSTS PARING THE CURRENT 262 MILLION IN INTEREST COSTS AT QUANTUM AND CUTTING OTHER COSTS COULD RETURN QUANTUM TO PROFITABILITY BY 1994 MR CLARKE SAID QUANTUM SADDLED ITSELF WITH THE 25 BILLION DEBT LOAD IN A 1989 RESTRUCTURING WHILE PLASTICS PRICES WERE NEAR THEIR PEAK MASSIVE DEBT SERVICE REQUIREMENTS COUPLED WITH THE CYCLICAL SLUMP IN POLYETHYLENE PRICES LEFT IT WITH A 1992 LOSS BEFORE ACCOUNTING CHARGES OF 1184 MILLION OR 398 A SHARE COMPARED WITH A 1991 LOSS OF 1233 MILLION OR 426 A SHARE THE LAST TIME QUANTUM EKED OUT A PROFIT WAS 1990 WHEN IT REPORTED NET INCOME OF 212 MILLION OR 79 CENTS A SHARE HANSON HAS A REPUTATION FOR OPPORTUNISTIC ACQUISITIONS AND ITS US OPERATIONS INCLUDE THE RECENTLY PURCHASED BEAZER GRAVEL OR AGGREGATES BUSINESS AND CAVENHAM FOREST INDUSTRIES A FOREST PRODUCTS COMPANY BOUGHT IN DECEMBER 1990 HANSON ALSO OWNS PEABODY COAL AND SCM CHEMICALS 9307010012 930701 CORRECTIONS & AMPLIFICATIONS THE DOW JONES WORLD STOCK MARKET INDEX WAS RECALCULATED ON TUESDAY JUNE 29 DUE TO DATA ERRORS INVOLVING THREE GERMAN AND SWISS COMPANIES AS A RESULT SOME NET CHANGE FIGURES PUBLISHED IN YESTERDAY'S INDEX TABLE DIDN'T RECONCILE WITH THE CORRESPONDING CLOSING FIGURES PUBLISHED MONDAY THE FIGURES PUBLISHED IN YESTERDAY'S EDITION REFLECT THE RECALCULATION THE WORLD INDEX CLOSED AT 10634 DOWN 054 FROM MONDAY AND THE WORLD EXCEPT US INDEX CLOSED AT 10508 DOWN 073 FROM MONDAY SHOICHIRO IRIMAJIRI IS SEGA ENTERPRISES LTD'S EXECUTIVE VICE PRESIDENT IN CHARGE OF MANUFACTURING AND DEVELOPMENT IN AN ARTICLE YESTERDAY HE WAS INCORRECTLY REFERRED TO AS A MARKETING EXECUTIVE FOR THE VIDEOGAME MAKER ENCYCLOPAEDIA BRITANNICA INC'S PRESIDENT AND CHIEF OPERATING OFFICER PETER NORTON WILL ASSUME ON SEPT 1 THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER BUT NOT THE CHAIRMAN'S ROLE NO SUCCESSOR TO THAT POST WHICH WILL BE VACATED BY THE RETIREMENT OF ROBERT P GWINN HAS BEEN NAMED AN ITEM IN YESTERDAY'S WHO'S NEWS COLUMN SAID THAT MR NORTON WOULD ASSUME BOTH DUTIES 9307010011 930701 LETTERS TO THE EDITOR OUTDATED IDEALISM OF A RABBLEROUSER UNIONS HAVE PLAYED AN IMPORTANT ROLE IN BUILDING AMERICA WITH PROPER LEADERSHIP THEY CAN RETURN TO AN EVEN MORE SIGNIFICANT ROLE HELPING AMERICA TO COMPETE IN A DIFFICULT GLOBAL ECONOMY BUT IF THE UNIONS OF THE FUTURE ARE TO BE RUN BY THE LIKES OF MS BRICKMAN AN ANGRY CONFRONTATIONLOVING CHILD WITH A CHIP ON HER SHOULDER I AM CONFIDENT THAT EITHER AMERICA'S UNIONS WILL LOSE ALL VESTIGE OF CREDIBILITY OR AMERICA WILL LOSE WHAT LITTLE COMPETITIVE EDGE IT HAS LEFT THE DAYS OF UNION RABBLEROUSING ENDED AT THE SAME TIME AMERICA'S ECONOMIC DOMINATION BEGAN DECLINING TODAY'S UNIONS WOULD SERVE THEMSELVES AND THEIR HARDWORKING MEMBERS BETTER IF THEY WORKED WITH BUSINESS TO CREATE SYNERGY TRUST AND A COMPETITIVE ECONOMIC CLIMATE THAT BENEFITS ALL PARTIES YOUR ARTICLE WHY MS BRICKMAN OF SARAH LAWRENCE NOW RALLIES WORKERS INACCURATELY DESCRIBES LABOR LAW AS DICTATING THAT UNIONS MUST WIN TWO VOTES TO REPRESENT WORKERS ONE TO HOLD THE ELECTION AND ANOTHER TO VOTE THE UNION IN UNDER THE NATIONAL LABOR RELATIONS ACT A UNION DESIRING TO REPRESENT EMPLOYEES IN THE COLLECTIVE BARGAINING PROCESS MUST FILE A PETITION FOR ELECTION WITH THE NATIONAL LABOR RELATIONS BOARD SUPPORTED BY AN ADEQUATE SHOWING OF INTEREST BEFORE AN ELECTION WILL BE CONDUCTED THE BOARD HAS DEFINED AN ADEQUATE SHOWING OF INTEREST AS EVIDENCE THAT AT LEAST 30 OF THE EMPLOYEES THE UNION WISHES TO REPRESENT DESIRE AN ELECTION SUCH EVIDENCE USUALLY TAKES THE FORM OF UNION AUTHORIZATION CARDS SIGNED BY THE EMPLOYEES NO VOTE IS REQUIRED IN THAT PROCESS IF THE UNION MEETS THE BOARD'S SHOWING OF INTEREST REQUIREMENT AND THE BOARD OTHERWISE DETERMINES THAT AN ELECTION IS APPROPRIATE ALL EMPLOYEES INCLUDING THOSE WHO DID NOT SIGN AUTHORIZATION CARDS MAY VOTE IN A SECRET BALLOT ELECTION FOR OR AGAINST THE UNION THIS IS THE ONLY VOTE CONDUCTED IN THE UNION REPRESENTATION PROCESS NOTABLY HOWEVER SOME OF THE LABOR LAW REFORMS PROPOSED BY CERTAIN MEMBERS OF THE CLINTON ADMINISTRATION WOULD MAKE IT POSSIBLE FOR UNIONS TO BECOME THE COLLECTIVE BARGAINING REPRESENTATIVE OF EMPLOYEES BASED SOLELY ON THE PRESENTATION OF AUTHORIZATION CARDS WITHOUT AN ELECTION SUCH A PROPOSAL WOULD DENY EMPLOYEES THE RIGHT TO VOTE ON AN ISSUE OF FUNDAMENTAL IMPORTANCE AND WOULD BE AN UNFORTUNATE DEVELOPMENT IN LABOR LAW 9307010010 930701 TECHNOLOGY & MEDICINE LILLY SUSPENDS TRIALS OF HEPATITIS B DRUG ADVERSE' EVENTS CITED ELI LILLY & CO CITING SERIOUS ADVERSE EVENTS SUSPENDED HUMAN TRIALS OF A COMPOUND THOUGHT TO HOLD PROMISE IN THE FIGHT AGAINST CHRONIC HEPATITIS B LESS THAN A YEAR AGO LILLY BASED IN INDIANAPOLIS LICENSED THE DRUG FIALURIDINE FROM OCLASSEN PHARMACEUTICALS INC AS PART OF ITS EFFORT TO INCREASE DRUGS IN ITS DEVELOPMENTAL PIPELINE THE DRUG WAS VIEWED AS A POTENTIAL BIG SELLER FOR LILLY THE FINANCIAL IMPACT OF YESTERDAY'S DISCLOSURE MAY BE OVERSHADOWED BY THE SETBACK TO TREATING A DISEASE THAT INFECTS UP TO 350 MILLION PEOPLE PRIMARILY IN THE THIRD WORLD HEPATITIS B TRANSMITTED BY SEXUAL CONTACT OR THE SHARING OF NEEDLES CAN IN ITS CHRONIC FORM LEAD TO CANCER OF THE LIVER WHILE A VACCINE EXISTS TO PREVENT THE VIRAL INFECTION CURRENT TREATMENT FOR THOSE WHO SUFFER THE CHRONIC FORM INVOLVES A SERIES OF INJECTIONS THAT HAVE SIDE EFFECTS AND THUS AREN'T CONSIDERED VERY EFFECTIVE CLOSELY HELD OCLASSEN IS BASED IN SAN RAFAEL CALIF LAST YEAR LILLY PAID 75 MILLION FOR OVERSEAS MARKETING RIGHTS TO OCLASSEN'S COMPOUND ASSUMING COSTS OF ONGOING DEVELOPMENT FOOD AND DRUG ADMINISTRATION APPROVAL WASN'T EXPECTED BEFORE 1995 IN MARCH LILLY CONDUCTED A PHASE II TRIAL OF THE ORAL DRUG BY ADMINISTERING IT TO 20 PATIENTS IN THE US IT SUSPENDED THE TRIALS IN MIDCOURSE THIS WEEK AFTER SOME PATIENTS SUFFERED WHAT A SPOKESMAN DESCRIBED AS EFFECTS RANGING FROM NAUSEA AND VOMITING TO LIVER AND KIDNEY FAILURE THERE HAVE BEEN NO DEATHS IN THE LATEST TRIALS THE COMPANY SAID IT MUST FURTHER EVALUATE RESULTS BEFORE DECIDING WHETHER TESTS WILL RESUME IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY LILLY'S SHARES CLOSED AT 4925 DOWN 25 CENTS 9307010009 930701 NATIONAL HEALTH GETS TIME TO RAISE OFFER FOR DAMON NEEDHAM HEIGHTS MASS DAMON CORP SAID ITS BOARD CONCLUDED THAT CORNING INC'S 23ASHARE OFFER FOR THE COMPANY IS SUPERIOR TO NATIONAL HEALTH LABORATORIES INC'S EARLIER BID AND HAS GIVEN NATIONAL TWO BUSINESS DAYS TO RESPOND NATIONAL HEALTH SAN DIEGO OFFERED 16 A SHARE FOR THE CLINICAL LAB COMPANY CORNING'S OFFER IS VALUED AT 368 MILLION PLUS THE ASSUMPTION OF ABOUT 200 MILLION IN DEBT AND OTHER OBLIGATIONS A NATIONAL HEALTH SPOKESMAN REITERATED THAT THE COMPANY IS STILL EVALUATING ITS OPTIONS I WOULDN'T BE SURPRISED IF THIS ISN'T OVER YET DAVID SACHS AN ANALYST AT FURMAN SELZ INC SAID BEFORE DAMON'S ANNOUNCEMENT WHY WOULDN'T NATIONAL COME BACK WITH A NEW BID IN THE CLINICAL LAB BUSINESS THERE AREN'T MANY COMPANIES LIKE DAMON LEFT 9307010008 930701 ECONOMY FACTORY ORDERS FELL BY 14 DURING MAY UNCERTAINTY IS CITED WASHINGTON FACTORY ORDERS DECLINED FURTHER IN MAY THE COMMERCE DEPARTMENT SAID ANOTHER INDICATION THAT ECONOMIC GROWTH IS SLOWING ORDERS FELL 14 IN MAY THE DEPARTMENT SAID FOLLOWING A 03 DECLINE IN APRIL IT WAS THE FOURTH DROP IN FIVE MONTHS SOME ANALYSTS ATTRIBUTED THE SLOWDOWN TO UNCERTAINTY AMONG BUSINESSES AND CONSUMERS ABOUT HOW PRESIDENT CLINTON'S ECONOMIC PROGRAM IS GOING TO WORK OUT PEOPLE ARE UNCERTAIN ABOUT EVERYTHING SAID ROGER BRINNER OF DATA RESOURCES INC THEY DON'T LIKE WHAT THEY KNOW AND THEY ARE AFRAID OF WHAT THEY DON'T KNOW BUSINESS LEADERS KNOW THAT TAXES ARE GOING TO INCREASE AND THE PROPOSED INCREASE IN BUSINESS INCENTIVES IS PROVIDING LITTLE COMFORT SAID REID GEARHART OF DUN & BRADSTREET CORP COMPANIES ARE AFRAID THAT IF A HEALTHCARE PLAN CALLING FOR TAXES ON BUSINESSES GOES INTO EFFECT THEY WILL BE HURT AND IT SEEMS THAT MANY ECONOMISTS BELIEVE THINGS WILL REMAIN SLOW FOR AT LEAST THE NEXT YEAR THE AMERICAN BANKERS ASSOCIATION'S ECONOMIC ADVISORY COMMITTEE SAID YESTERDAY THAT IT FORECASTS ECONOMIC GROWTH OF 24 IN 1993 AND 29 IN 1994 AFTER A RISE OF 21 IN 1992 THE COMMITTEE SAID INFLATION WOULD BE SLIGHTLY HIGHER BUT A LARGE ACCELERATION IS UNLIKELY STUART HOFFMAN WHO HEADS THE COMMITTEE AND IS CHIEF ECONOMIST FOR PNC FINANCIAL CORP SAID THAT AMPLE GLOBAL CAPACITY RESTRAINED WAGES AND INCREASED PRODUCTIVITY WOULD ALL WORK TO HELP KEEP PRICES IN CHECK ORDERS FOR DURABLE GOODS THOSE INTENDED TO LAST THREE YEARS OR MORE FELL 17 IN MAY AFTER DECLINING 02 IN APRIL ORDERS FOR NONDURABLE GOODS FELL 10 AFTER DROPPING 05 IN APRIL ANOTHER BAD SIGN IN THE LATEST REPORT WAS A 09 DROP IN UNFILLED ORDERS IF UNFILLED ORDERS FALL SO DOES THE NEED FOR PRODUCTION AND HIRING UNFILLED ORDERS HAVE BEEN FALLING FOR THREE MONTHS AND HAVE REACHED THEIR LOWEST LEVEL SINCE NOVEMBER 1988 UNFILLED ORDERS DECLINED 05 IN APRIL HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES FOR MANUFACTURERS IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9307010007 930701 HEARD ON THE STREET TECHNICIANS ARE BULLISH ON STOCKS' SUMMER PROSPECTS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL AND NOW A WORD FROM THE CHARTANDMAGNIFYINGGLASS CROWD MOST STOCKMARKET TECHNICAL ANALYSTS ARE PREDICTING A 2TO8 GAIN IN THE DOW JONES INDUSTRIAL AVERAGE THIS SUMMER MOST OF THESE STOCKMARKET WEATHER FORECASTERS SEE THE INDUSTRIAL AVERAGE STRUGGLING ITS WAY TO THE 3600TO3800 RANGE FROM YESTERDAY'S 351608 AFTER THAT MANY EXPECT AT LEAST A MILD DECLINE A MINISURVEY OF SEVEN WELLKNOWN TECHNICAL ANALYSTS ALSO KNOWN AS TECHNICIANS OR CHARTISTS FINDS FIVE OF THEM BULLISH ON STOCKS' PROSPECTS FOR THE NEXT FEW MONTHS AND THEIR PREDICTIONS SHOW AN UNUSUAL DEGREE OF UNANIMITY UNLIKE FUNDAMENTAL ANALYSTS WHO TRY TO PREDICT COMPANIES' SALES EARNINGS AND OTHER BUSINESS CHARACTERISTICS TECHNICAL ANALYSTS TAKE THEIR CUES STRICTLY FROM A STOCK'S PAST TRADING PATTERNS THEY TRACE A STOCK'S PRICE PATH AND DETERMINE HOW MUCH TRADING VOLUME IT TOOK TO PROPEL A STOCK ALONG THAT PATH FROM THOSE CLUES THEY TRY TO DEDUCE WHAT A STOCK OR THE OVERALL MARKET WILL DO NEXT DENNIS JARRETT CHIEF MARKET ANALYST AT KIDDER PEABODY IS PART OF THE BULLISH MAJORITY YOU COULD BE UP 5 TO 10 WITHIN A FEW MONTHS HE SAYS THE INGREDIENTS ARE THERE I'D SETTLE FOR 3800 MR JARRETT RATTLES OFF SOME TECHNICAL FACTORS THAT MAKE HIM OPTIMISTIC THE ADVANCEDECLINE LINE A CUMULATIVE TOTAL OF ADVANCING STOCKS MINUS DECLINERS HIT A RECORD A FEW WEEKS AGO AND IS HOLDING NOT FAR BELOW ITS HIGH THERE ARE NO MAJOR DIVERGENCES MEANING THAT THE VARIOUS MARKET AVERAGES HAVE BEEN MOVING UP MORE OR LESS IN TANDEM AND POLLS OF INVESTOR PSYCHOLOGY SHOW THAT PEOPLE STILL ARE CAUTIOUS ABOUT THE MARKET PRESUMABLY MEANING THEY HAVEN'T USED UP ALL THEIR FIREPOWER YET ON THE FUNDAMENTAL SIDE MR JARRETT LIKES THE POWERFUL INFLOW OF CASH TO MUTUAL FUNDS BEST OF ALL HE SAYS LOW INTEREST RATES ARE PLAYING A NICE TUNE SWEET MUSIC TO OUR EARS INTEREST RATES ARE NOT GOING AGAINST US A PARTICULAR FAVORITE OF MR JARRETT'S AT THE MOMENT IS USF&G THE INSURANCE COMPANY HEAVY ACCUMULATION HAS BEEN TAKING PLACE HE SAYS THERE IS NO OVERHEAD RESISTANCE UNTIL 28 THE STOCK HAS BEEN RESTING THE PAST MONTH OR SO BETWEEN 17 AND 19 IT'S CONSOLIDATING PRIOR GAINS SAYS MR JARRETT TO ME IT'S THE RESTING SPOT ON THE HIGHWAY TO HEAVEN ONE STOCK MR JARRETT WOULD AVOID IS DELL COMPUTER WHICH TRADED OVER THE COUNTER YESTERDAY AT 18 3/4 DOWN 1/4 THE STOCK HAS BEEN POUNDED SINCE IT WAS AROUND 50 HE POINTS OUT IT'S TRYING TO FIND SUPPORT IN THE UPPER TEENS BUT I DON'T THINK IT WILL HOLD I SUSPECT IT WILL BE DOWN TO AROUND 1315 IN THE NEXT FEW MONTHS A LEVEL THAT PROVIDED SUPPORT BACK IN 1991 AND 1992 ALSO BULLISH BUT NERVOUS IS JACK SOLOMON OF BEAR STEARNS HE SAYS HIS TECHNICAL INDICATORS AFTER WORKING SMOOTH AS SILK SINCE THE PERSIAN GULF WAR STARTED TO MISFIRE RECENTLY FALSELY PREDICTING A DECLINE HE HAS CONCLUDED THAT THE CASCADE OF MONEY INTO MUTUAL FUNDS IS OVERRIDING OTHER FACTORS ONE OPTIMISTIC SIGN IS THAT TRADING VOLUME HAS BEEN LIGHT DURING DECLINES MR SOLOMON SAYS THERE WAS NO SELLING PRESSURE WHEN THE MARKET WENT DOWN SO HE LOOKS FOR THE INDUSTRIAL AVERAGE TO RUN TO ABOVE 3600 THIS SUMMER ONE STOCK MR SOLOMON HAS RECOMMENDED REPEATEDLY AND STILL LIKES IS MOTOROLA I THINK IT'S GOING TO BE ONE OF THESE STEADY ANIMALS THE WAY MICROSOFT WAS FOR A COUPLE OF YEARS HE SAYS THE ENTIRE SEMICONDUCTOR GROUP HAS BEEN STRONG BUT MOTOROLA HAS PERFORMED WELL EVEN RELATIVE TO ITS GROUP IT WILL GO DOWN 3 TO 5 POINTS THEN COME BACK 10 OR 15 SAYS MR SOLOMON I THINK IT WILL BE THAT WAY FOR THE NEXT YEAR OR SO BUT HE WOULDN'T TOUCH MEDTRONIC IN THE STOCK'S DOWNTREND IT HAS VIOLATED ITS 200DAY MOVING AVERAGE A BAD SIGN SAYS MR SOLOMON AND IT FACES UNCERTAINTY FROM THE YETTOBEANNOUNCED CLINTON ADMINISTRATION HEALTH PROGRAM HE THINKS MEDTRONIC 67 1/2 YESTERDAY WILL FALL BACK TO 52 OR BELOW NOT ALL TECHNICIANS ARE BULLS RICHARD ARMS OF ARMS COS SAYS IT'S OMINOUS THAT STOCK PRICES HAVE ADVANCED ONLY MODESTLY THIS YEAR DESPITE HUGE TRADING VOLUME EVERY MONTH THE MARKET HE SAYS IS RUNNING INTO A WALL AMONG THE STOCKS MR ARMS STILL LIKES ARE DRUG MAKER SYNTEX AND COMPUTER GIANT INTERNATIONAL BUSINESS MACHINES I LOOK FOR A STOCK THAT HAS HAD A LONG DECLINE AND THEN A GOOD BASE OR LEVELINGOFF PERIOD HE EXPLAINS MOST IMPORTANT HE LIKES STOCKS THAT SHOW MORE VOLUME ON RISES THAN ON DECLINES LATELY HE SAYS BOTH SYNTEX AND IBM HAVE MET THAT DESCRIPTION BUT MR ARMS WOULD SELL FORD MOTOR WHICH HE SAYS IS LATELY SHOWING MORE VOLUME ON DECLINES THAN ON ADVANCES IN THE BEARISH CAMP IS JOSEPH A FESHBACH FORMER TECHNICAL ANALYST FOR SHEARSON LEHMAN BROTHERS AND NOW MANAGER OF A HEDGE FUND HEATHER HILL CAPITAL THE FLOOD OF MONEY INTO MUTUAL FUNDS THAT HAS BUOYED STOCKS IS A DANGER SIGN HE SAYS BECAUSE IN THE PAST THE LITTLE GUYS OFTEN HAVE PILED IN CLOSE TO MARKET TOPS BUT RICHARD MCCABE OF MERRILL LYNCH ALFRED GOLDMAN OF AG EDWARDS AND NEWSLETTER WRITER ANDREW ADDISON ARE ALL BULLS THE BULL MARKET IS GROWING WHISKERS BUT IT'S NOT READY FOR A RESUSCITATOR SAYS MR GOLDMAN MY TARGET RANGE IS THE 3650 TO 3700 AREA HIS FAVORITES INCLUDE PET WMX TECHNOLOGIES BLACK & DECKER AND MAYTAG MR MCCABE SAYS THE CURRENT ADVANCE IS 2 1/2 YEARS OLD THE AGE AT WHICH THE TYPICAL BULL MARKET DIES SIGNS THAT THE ADVANCE IS IN ITS LATE STAGES HE SAYS INCLUDE THE HEAVY CALENDAR OF STOCK OFFERINGS AND THE FACT THAT OVERTHECOUNTER VOLUME HAS LATELY EXCEEDED BIG BOARD VOLUME BUT HE THINKS THERE'S STILL ROOM FOR A SELECTIVE AND RAGGED ADVANCE TO 3600 OR 3700 INVESTORS PLAYING THIS LATESTAGE BULL MARKET SHOULD BE IN STEELS MACHINERY ELECTRICAL EQUIPMENT OIL AND OIL SERVICES NATURAL GAS AND TELECOMMUNICATIONS STOCKS HE SAYS MR ADDISON EDITOR OF ADDISON REPORT IS VERY ENCOURAGED BY THE SHAPE OF THE ADVANCEDECLINE LINE AND BY RECENT STRENGTH IN THE DOW JONES UTILITY AVERAGE HE LIKES BROKERAGE STOCKS PARTICULARLY LEGG MASON AND A POTPOURRI OF OTHER ISSUES SUCH AS GAS DISTRIBUTOR PACIFIC ENTERPRISES TRANSCANADA PIPELINES AUTO PARTS MAKER ECHLIN GAYLORD ENTERTAINMENT AND CATALOG RETAILER HORN & HARDART 9307010006 930701 WHO'S NEWS AMERICAN RE CORP AMERICAN RE CORP PRINCETON NJ JAMES A LAWRENCE 40 YEARS OLD WAS ELECTED A DIRECTOR AT THIS REINSURANCE AND RELATED SERVICES CONCERN INCREASING THE SIZE OF THE BOARD TO SEVEN MR LAWRENCE IS EXECUTIVE VICE PRESIDENT OF PEPSICOLA INTERNATIONAL A UNIT OF PEPSICO INC 9307010005 930701 CALPERS BECOMES A DIRECT PARTNER WITH ENRON UNIT BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CALIFORNIA'S 75 BILLION PENSION FUND KNOWN FOR ITS SHAREHOLDER ACTIVISM TOOK THE UNUSUAL STEP OF BECOMING A DIRECT PARTNER WITH A CORPORATION IN A NATURALGAS VENTURE THE NATION'S LARGEST PUBLIC PENSION FUND KNOWN AS CALPERS FORMED A PARTNERSHIP WITH ENRON CORP'S ENRON CAPITAL TO INVEST IN GAS PIPELINES STORAGE PROJECTS AND OTHER INVESTMENT OPPORTUNITIES CALPERS AND THE ENRON UNIT WILL EACH CONTRIBUTE TO THE PARTNERSHIP AS MUCH AS 250 MILLION OVER A THREEYEAR PERIOD ONEHALF THE CAPITAL CONTRIBUTION WILL BE USED TO BUY ENRON STOCK THE PENSION FUND FORMALLY KNOWN AS CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM PROVIDES RETIREMENT AND HEALTH BENEFITS FOR MORE THAN 900000 CURRENT AND FORMER CALIFORNIA STATE EMPLOYEES FOR CALPERS THE DIRECT INVESTMENT IN ENRON IS A WAY TO FULFILL THE PENSION FUNDS' VOW TO TAKE LARGER STAKES IN INDIVIDUAL CORPORATIONS RATHER THAN PUT SO MUCH OF ITS MONEY INTO INDEX FUNDS ABOUT 80 OF THE 25 BILLION CALPERS INVESTS IN US STOCKS IS INVESTED IN INDEX FUNDS WHICH ARE BASKETS OF STOCKS THAT MIMIC OVERALL MARKET AVERAGES AS OPPOSED TO INDIVIDUAL STOCKS CALPERS IS EXPECTED TO MAKE SIMILAR DIRECT INVESTMENTS WITH OTHER CORPORATIONS AT A NEW YORK INVESTORS' CONFERENCE IN MAY DALE HANSON CHIEF EXECUTIVE OFFICER OF CALPERS SAID HE HOPED THE FUND WOULD BECOME MORE INVOLVED IN RELATIONSHIP INVESTING HE SAID INSTITUTIONAL INVESTORS SHOULD BECOME CONCERNED OWNERS OF THE BUSINESSES IN WHICH THEY INVEST UNTIL NOW CALPERS WAS KNOWN MORE FOR TWISTING THE ARMS OF BIG CORPORATIONS RATHER THAN FOR WORKING HANDINHAND WITH THEM UNDER MR HANSON THE HUGE CALIFORNIA FUND HAS FOR SEVERAL YEARS USED ITS HOLDINGS TO PUT PRESSURE ON UNDERPERFORMING CHIEF EXECUTIVE OFFICERS FOR EXAMPLE CALPERS HAS HAD A ROLE IN MANAGEMENT UPHEAVALS AT SUCH LARGE COMPANIES AS INTERNATIONAL BUSINESS MACHINES CORP AND GENERAL MOTORS CORP HOWEVER CALPERS ITSELF HASN'T PERFORMED WELL IN RECENT YEARS DESPITE MR HANSON'S HIGH PROFILE MR HANSON APPARENTLY HOPES THE ENRON INVESTMENT WILL HELP CHANGE THAT RECORD IN A STATEMENT MR HANSON SAID THAT WITH ENRON'S EXPERTISE AND THE CAPITAL INFUSION MADE BY CALPERS THE PARTNERSHIP SHOULD GENERATE A VERY FAVORABLE RATE OF RETURN TO THE PARTNERS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ENRON SHARES WHICH RALLIED TO A 52WEEK HIGH TUESDAY PULLED BACK BY FALLING 2375 TO 65875 A SHARE 9307010004 930701 REVIEW & OUTLOOK EDITORIAL PEROT AND THE GOVERNORS THOUGH PRESIDENT CLINTON AND SOME OF HIS CABINET MEMBERS RECENTLY HAVE FOUND THEIR VOICE ON THE BENEFITS OF THE NORTH AMERICAN FREE TRADE AGREEMENT IT CAN BE A LONELY VIGIL WAITING FOR MUCH SUPPORT FROM THE PARTY'S POLITICIANS IN WASHINGTON DC THEY'RE TOO SPOOKED ON NAFTA BY ROSS PEROT THE UNIONS AND GREENS IN A CLASSIC INSIDETHEBELTWAY PLOY ANTINAFTA FORCES YESTERDAY GOT A CONGENIAL FEDERAL JUDGE TO HAND DOWN AN UTTERLY LOOPY DECISION THAT NAFTA MAY NOT PROCEED BECAUSE THE US HASN'T FILED AN ENVIRONMENTAL IMPACT STATEMENT HOW LUDICROUS YET SOMEHOW THE FLINTSTONE AGE PLAINTIFFS THE SIERRA CLUB PUBLIC CITIZEN AND FRIENDS OF THE EARTH REPORTEDLY HAVE THE CLINTON CROWD OFF STRIDE WITH THIS DECISION THE PRESCRIBED COURSE WOULD BE TO REQUEST AN EXPEDITED HEARING FROM THE APPEALS COURT WHICH HAS BEEN DOWN THIS SAME ROAD BEFORE WITH JEREMY RIFKIN BEFORE THE U S BECOMES A WORLD LAUGHINGSTOCK OUT WHERE THE BUFFALO ACTUALLY ROAMED HOWEVER IT'S A DIFFERENT STORY THE WESTERN GOVERNORS' ASSOCIATION MET LAST WEEK TO SPEAK UP FOR THE OPPORTUNITIES THAT GREATER HEMISPHERIC COMMERCE PROMISES BEING OFF THE EASTERN CORRIDOR MEDIA AXIS IT'S HARD FOR THE STATES CLOSEST TO MEXICO TO GET MUCH ELEVATION IN THE NAFTA DEBATE BUT THEY CERTAINLY DESERVE A HEARING AS THINGS STAND NAFTA HAS BECOME A PRISONER OF A FEW THOUSAND ASSEMBLY JOBS THAT WOULD REMAIN IN THE US IF ONLY THE ECONOMY WERE STATIC IT'S NOT THE GOVERNORS SEEM TO REALIZE THAT A RECENT HERITAGE FOUNDATION SURVEY FOUND 40 OF THEM SUPPORTING NAFTA AND AT THE WESTERN MEETING VOCAL BACKERS INCLUDED DEMOCRATS BEN NELSON OF NEBRASKA AND JOAN FINNEY OF KANSAS AS WELL AS ANN RICHARDS OF TEXAS ED SCHAFER REPUBLICAN OF NORTH DAKOTA QUESTIONED WHY HIS STATE'S DELEGATION TO CONGRESS WAS OPPOSED A PHENOMENON THAT HERITAGE HAS EXPLORED HINT CAMPAIGN DEBTS TO SPECIAL INTERESTS THESE GOVERNORS ARE READY TO TAKE ON MR PEROT'S FALLACIES AS DEMOCRAT ROY ROMER OF COLORADO PUT IT WE NEED TO SHIFT THE ARGUMENT AND SAY THAT THIS TRANSFER OF JOBS OUTSIDE THE COUNTRY HAS BEEN PRIMARILY NOT TO MEXICO BUT TO THE FAR EAST AND THAT THE CHANCE WE HAVE WITH NAFTA IS TO FIND A COMMON MARKET WHERE OUR ECONOMIC PROSPERITY CAN FEED OFF OF EACH OTHER NOBODY NEEDS A BOOST MORE THAN CALIFORNIA GOVERNOR PETE WILSON'S ECONOMISTS HAVE ISSUED A STUDY OF NAFTA THAT WHILE RESERVED IN ITS PROJECTIONS AND LANGUAGE HOLDS OUT THE HOPE OF 30000 TO 40000 JOBS BEING ADDED IN THE STATE BY THE TREATY ALREADY CALIFORNIA'S SHIPMENTS TO MEXICO HAVE INCREASED 190 IN THE PAST FIVE YEARS AS THE REPORT POINTS OUT EXPORTORIENTED EMPLOYMENT TENDS TO ENJOY ABOVEAVERAGE PAY SO THESE CAN BE EXPECTED TO BE WHAT UNIONISTS AND THEIR FRIENDS CALL GOOD JOBS A PARTICULARLY INTERESTING CHART IN THE CALIFORNIA STUDY FINDS THAT IF DIRECT FOREIGN INVESTMENT IN MEXICO GREW TO 15 BILLION FROM 3 BILLION INSTEAD OF GOING TO ASIA PERHAPS THE 100000 US JOBS SUPPORTED BY THAT EQUITY WOULD MORE THAN DOUBLE THIS ADDRESSES A CRITICALLY MISUNDERSTOOD CONCEPT IN THE NAFTA DEBATE MR PEROT AND HIS STRANGE BEDFELLOWS ARE HUNG UP ON THE IDEA THAT DOLLARS OR YEN OR FRANCS THAT GO INTO MEXICO ARE SUCKING JOBS FROM THEIR HOME COUNTRIES AWAY WITH THEM IN FACT ON BALANCE AND AS LONG AS THE PROPER ECONOMIC INCENTIVES ARE MAINTAINED AT HOME THE TRUTH SHOULD BE THE OPPOSITE A BUSTLING MEXICO WHICH HELPS THE US IN ALL KINDS OF WAYS IS FOR ONE THING A BUYER OF INDUSTRIAL AND CONSUMER PRODUCTS AND TECHNOLOGY FROM THE NORTH CONSIDER THE VIEW OF SAFI QURESHEY CHIEF EXECUTIVE OF ONE OF CALIFORNIA'S GREAT SUCCESS STORIES OF RECENT YEARS AST RESEARCH MR QURESHEY LIKES THE IDEA OF NAFTA ENHANCING MEXICO AS A MARKET FOR HIS PERSONAL COMPUTER LINE AND THE TREATY MIGHT ASSIST IN SOURCING SOME MEXICAN COMPONENTS BUT PRODUCTION OF THE ACTUAL PCS COMES DOWN TO BEING ABLE TO GET THE RIGHT PARTS TOGETHER WHEN YOU NEED THEM IN OTHER WORDS RIGHT NOW AND THAT CALLS FOR A LOCATION AT THE HUB OF RELIABLE SUPPLY ROUTES THAT'S WHY HE EXPECTS TO KEEP STOCKING THE NORTH AMERICAN MARKET FROM THE UNITED STATES SOPHISTICATED PEOPLE KNOW THE SCORE ON INTERNATIONAL TRADE PRESUMABLY MR PEROT IS ONE OF THEM IF SO THAT MEANS HE HAS MORE THAN HIS NUMBERS MIXED UP IT IS TIME THAT MORE US LEADERS JOIN THE WESTERN GOVERNORS IN SETTING HIM AND HIS FOLLOWING STRAIGHT 9307010003 930701 CORPORATE FOCUS DONNELLEY FOLLOWS ITS CUSTOMERS AROUND THE WORLD ONCEHOMEBOUND PRINTER IS EXPLORING NEW LOCATIONS AND TECHNOLOGIES BY SUSAN CAREY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO AN RR DONNELLEY & SONS CO EXECUTIVE STRIDES THROUGH THE RECEPTION AREA OF THE COMMERCIAL PRINTING GIANT'S HEADQUARTERS HERE AND CALLS TO THE SECRETARY DO YOU KNOW HOW TO SAY 'GOOD AFTERNOON' IN ITALIAN HE MIGHT WELL HAVE ASKED HOW TO SAY BUON POMERIGGIO IN FRENCH SPANISH THAI OR MANDARIN DONNELLEY UNTIL RECENTLY AN ALLAMERICAN LEVIATHAN WITH THE BULK OF ITS BUSINESS IN SLOWGROWTH OR RECESSIONPRONE SEGMENTS SUCH AS CATALOGS PHONE BOOKS AND MAGAZINES IS LOOKING OVERSEAS AND TO EMERGING TECHNOLOGIES TO PRIME ITS EXPANSION INTO THE NEXT CENTURY IN THE PAST THREE YEARS DONNELLEY HAS PUT UP PLANTS IN SINGAPORE AND MEXICO BEGUN JOINT VENTURES IN THAILAND HONG KONG FRANCE AND SPAIN OPENED A SALES OFFICE IN SOUTH KOREA AND PURCHASED PRINTING COMPUTER DOCUMENTATION AND TRANSLATION COMPANIES IN BRITAIN IRELAND AND THE NETHERLANDS DONNELLEY'S FIRST FOREIGN ACQUISITION A BRITISH PRINTER IN 1978 WAS A BIG PLUNGE FOR THE ROCKRIBBED CHICAGO COMPANY KNOWN FOR CHURNING OUT THE GOOD BOOK AND THE BIG BOOK THE BIBLE AND SEARS CATALOG NOT LONG BEFORE THAT PURCHASE ONE COMPANY EXECUTIVE RECALLS THE DONNELLEY BOARD WAS GRAPPLING WITH WHETHER TO BUY A PRINTING PRESS FROM AN OVERSEAS SUPPLIER THE QUESTION STUMPED THE GROUP THE EXECUTIVE SAYS BECAUSE DONNELLEY HADN'T EVER DEALT WITH ISSUES SUCH AS FOREIGN CURRENCY SWINGS MOVING LOGISTICS AND CUSTOMS TODAY DONNELLEY BRAGS THAT MORE THAN 30 OF ITS 140 OFFICES AND SITES ARE OUTSIDE THE US THE COMPANY PRINTS COMIC BOOKS IN BANGKOK TELEPHONE BOOKS FOR PRAGUE AND GIBRALTAR INITIAL PUBLIC OFFERING DOCUMENTS FOR CHINESE COMPANIES AND CHILDREN'S BOOKS IN MEXICO WHILE ONLY 8 OF LAST YEAR'S 419 BILLION IN REVENUE CAME FROM ABROAD DONNELLEY EXPECTS REVENUE FROM INTERNATIONAL OPERATIONS TO GROW BY AT LEAST 40 TO 50 A YEAR IN THE NEXT DECADE WE DON'T HAVE SOME WILD DESIRE TO BE OUTSIDE THE BORDERS OF THE UNITED STATES SAYS JOHN R WALTER CHAIRMAN AND CHIEF EXECUTIVE WE GO WITH OUR CUSTOMERS CERTAIN CLIENT GROUPS INCLUDING COMPUTER HARDWARE AND SOFTWARE CONCERNS TELECOMMUNICATIONS COMPANIES AND FINANCIAL HOUSES ARE GOING OVERSEAS AND WANT DONNELLEY TO GO WITH THEM HE SAYS THE COMPUTER DOCUMENTATION BUSINESS IS AN EXAMPLE HARDWARE AND SOFTWARE PRODUCERS INCREASINGLY ARE TURNING TO OUTSIDE FIRMS TO TRANSLATE PRINT PACKAGE AND DISTRIBUTE THEIR PRODUCT MANUALS IN 1983 ITS FIRST YEAR IN THE COMPUTER DOCUMENTATION FIELD DONNELLEY HAD ONE PLANT IN INDIANA AND DID LESS THAN 50 MILLION IN REVENUE THIS YEAR SAYS RORY COWAN DONNELLEY'S EXECUTIVE VICE PRESIDENT FOR INFORMATION TECHNOLOGY COMPUTER DOCUMENTATION WILL PRODUCE MORE THAN 500 MILLION IN REVENUE FROM 15 PLANTS AND OFFICES AROUND THE WORLD OVERSEAS REVENUE IN THE SEGMENT TRIPLED LAST YEAR AND IS EXPECTED TO DOUBLE IN 1993 SUPPLYING THE COMPUTER INDUSTRY REALLY WAS THE CATALYST FOR TRANSFORMING DONNELLEY MAINTAINS MR COWAN WE LEARNED ABOUT THE NEW TECHNOLOGIES THAT ARE COMING ALONG FINANCIAL PRINTING ANOTHER RELATIVELY NEW BUSINESS FOR DONNELLEY ALSO REQUIRED APPLICATION OF NEW TECHNOLOGY IN OVERSEAS OFFICES TODAY LAWYERS OR BANKERS IN LONDON HONG KONG TOKYO AND NEW YORK CAN GO TO SECURE DONNELLEY OFFICES IN THEIR CITIES RETRIEVE IDENTICAL DOCUMENTS ON COMPUTERS AND WORK ON THEM INTERACTIVELY IN REAL TIME DONNELLEY WHICH SPENT 312 MILLION ON CAPITAL INVESTMENTS ACQUISITIONS AND JOINT VENTURES LAST YEAR AND EXPECTS TO SPEND 300 MILLION IN 1993 IS AGGRESSIVELY TACKLING ALTERNATIVE TECHNOLOGIES SUCH AS CDROM ONLINE INFORMATION MAPPING DIGITALPROCESS PUBLISHING AND MORE SOME OF THESE EMERGING TECHNOLOGIES COULD BE HARNESSED BY GENERAL AND SPECIALTY RETAILERS AND PUBLISHERS OF BOOKS AND MAGAZINES CLIENTS ARE ASKING US ABOUT ALTERNATIVE MEDIA NOTES JONATHAN WARD PRESIDENT OF DONNELLEY'S MERCHANDISE MEDIA GROUP THE GROUP WHICH PRINTS CATALOGS AND INSERTS IS USING ITS CONSUMER DATABASE AND ITS KNOWLEDGE OF DIRECT MAIL TO FIND WAYS TO HELP CUSTOMERS MAIL FEWER CATALOGS SAYS MR WARD IT'S ALSO MAKING ACQUISITIONS THAT ILLUSTRATE ITS FOCUS ON GLOBALIZATION AND NEW WAYS OF DELIVERING INFORMATION IN EARLY JUNE DONNELLEY BOUGHT AN IRISH CONCERN THAT PROVIDES TRANSLATION SOFTWARE DEVELOPMENT AND TECHNICAL WRITING SERVICES THROUGHOUT EUROPE IT ALSO ANNOUNCED A JOINT VENTURE WITH CINCINNATI BELL INC TO STUDY AN ELECTRONIC YELLOW PAGES BUT 129YEAROLD DONNELLEY HASN'T TURNED ITS BACK ON ITS PRIMARY CATALOG BOOK AND MAGAZINE PRINTING BUSINESSES WHICH STILL ACCOUNT FOR ABOUT 90 OF REVENUE THE COMPANY REMAINS THE WORLD'S LARGEST PRINTER OF THE BIBLE IT PRINTS JC PENNEY CATALOGS TIME MAGAZINE AND NEWSPAPER INSERTS FOR WALMART INDEED IT HAS BEEN A RARE WEEK OR MONTH OF LATE WHEN DONNELLEY DIDN'T ANNOUNCE AT LEAST ONE ACQUISITION OR JOINT VENTURE TO ROUND OUT THE PORTFOLIOS OF ITS MAINSTAY BUSINESS UNITS OR TO GAIN MARKET SHARE EARLY IN JUNE DONNELLEY BOUGHT A RINGIER AMERICA INC UNIT THAT PRODUCES CITY AND REGIONAL MAGAZINES MEDICAL PUBLICATIONS AND TRADE ASSOCIATION JOURNALS ALSO IN JUNE IT PURCHASED A SPECIALTY AND DIRECTMAIL PRINTER IN WHEELING ILL BUT ITS 80YEAR TRADITION OF PUMPING OUT THE SEARS ROEBUCK & CO CATALOGS CAME TO AN ABRUPT HALT IN JANUARY WHEN SEARS DROPPED ITS GENERALMERCHANDISE CATALOG BUSINESS THE LOSS OF THAT CATALOG BUSINESS IS NOT TERRIBLY MATERIAL TO OUR REVENUE MIX SAYS THE 46YEAROLD MR WALTER WHO JOINED DONNELLEY IN 1969 AS A TRAINEE AND TOOK THE TOP JOB 20 YEARS LATER DONNELLEY IS NOW TALKING TO SEARS ABOUT OTHER SERVICES SUCH AS DIRECT MARKETING DATABASE MANAGEMENT AND LOGISTICS HE SAYS DESPITE SOFTNESS IN MAGAZINE AND YELLOWPAGES ADVERTISING AND THE PROLONGED SLUMP IN US RETAILING DONNELLEY IS FINANCIALLY STRONG AND HAS LITTLE DEBT THE COMPANY EARNED 2347 MILLION LAST YEAR UP FROM 2049 MILLION IN 1991 BRUCE THORP A MEDIA ANALYST FOR PNC BANK IN PHILADELPHIA THINKS DONNELLEY IS ON THE RIGHT TRACK ALTHOUGH HE IS NEUTRAL ABOUT THE STOCK THE COMPANY IS AWARE THAT IT'S IN A PRETTY MATURE MARKET OR EVEN A DECLINING MARKET SAID MR THORP THEY'VE BEEN TRYING TO EXPAND GEOGRAPHICALLY WORLDWIDE ANALYSTS EXPECT DONNELLEY TO HAVE EARNED 34 CENTS TO 35 CENTS IN THE QUARTER ENDED JUNE 30 FLAT FROM THE RESTATED 34 CENTS A SHARE DONNELLEY EARNED A YEAR EARLIER WALL STREET'S ESTIMATES FOR THE FULL YEAR RANGE FROM 160 TO 170 A SHARE UP FROM 151 FOR 1992 MR WALTER SAYS HE'S COMFORTABLE WITH THE STREET'S FORECASTS FOR THE SECOND QUARTER HE IS LESS PLEASED WITH ANALYSTS' PREDOMINANTLY NEUTRAL RECOMMENDATION ON DONNELLEY STOCK HE BELIEVES DONNELLEY CAN GAIN MARKET SHARE IN EXISTING BUSINESSES MOVE INTO UNFILLED NICHE MARKETS EXPAND FURTHER OVERSEAS AND INCREASINGLY OFFER CLIENTS NEW WAYS OF DELIVERING THEIR PRODUCTS 9307010002 930701 WHO'S NEWS CANADA'S NORTHERN TELECOM SHAKES UP TOP MANAGEMENT AT PRIMARY US UNIT BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL ROCKED BY TECHNICAL AND MARKETING PROBLEMS IN ITS CORE PRODUCT LINE CANADA'S BIG TELEPHONE EQUIPMENT MAKER NORTHERN TELECOM LTD SHOOK UP THE TOP MANAGEMENT OF ITS PRIMARY US GROUP THE US GROUP WHICH COMPETES WITH AMERICAN TELEPHONE & TELEGRAPH CO TO SELL NETWORK SWITCHING AND TRANSMISSION GEAR TO PHONE COMPANIES HAS BEEN THE CHIEF SOURCE OF TECHNICAL AND MARKETING PROBLEMS AT NORTHERN IN THE PAST YEAR THE TORONTOBASED COMPANY PROMOTED THE PRESIDENT OF ITS CANADIAN UNIT GEDAS A SAKUS TO HEAD THE US SWITCHING NETWORKS GROUP ALAN LUTZ WHO NOW HEADS THE US UNIT WILL LEAVE NORTHERN TO SET UP A CONSULTANCY NORTHERN SAID A PERSON CLOSE TO NORTHERN SAID MR LUTZ WOULD HAVE REPORTED TO MR SAKUS AFTER THE CHANGE AND CHOSE INSTEAD TO QUIT MR LUTZ COULDN'T BE REACHED FOR COMMENT EARLIER THIS YEAR NORTHERN REDUCED THE POWERS OF ITS CHAIRMAN AND EXECUTIVE VICE PRESIDENT LEADING THEM TO LEAVE THE COMPANY YESTERDAY'S WORD OF THE PERSONNEL CHANGES CAME LESS THAN A WEEK AFTER NORTHERN SAID IT WOULD REPORT A LOSS FOR THE SECOND QUARTER AT THE SAME TIME LAST WEEK NORTHERN NAMED A BOARD MEMBER WHO WAS PROCTER & GAMBLE'S FORMER CHAIRMAN TO BE ITS NEW CHAIRMAN NORTHERN HAS BEEN SUFFERING FROM SOFTWARE PROBLEMS IN ITS COMPUTERIZED SWITCHING EQUIPMENT HURTING ITS SALES TO PHONE COMPANIES THE COMPANY CONFIRMED AND INSIDERS SAID SHIPMENTS OF A NEW LINE OF FIBEROPTIC TRANSMISSION PRODUCTS FOR LOCAL PHONE NETWORKS ARE BEHIND SCHEDULE BY ABOUT A YEAR ARE THERE PROBLEMS YES SAID A SPOKESMAN ARE THEY FIXABLE YES WE'VE GOT A DIFFICULT YEAR AHEAD OF US NORTHERN TELECOM'S SHARE OF THE 55 BILLION US BIG SWITCH MARKET SLIPPED FOUR PERCENTAGE POINTS IN 1992 TO 35 WITH MOST OF THOSE POINTS GOING TO AT&T ACCORDING TO ANALYST GREG MESNIAEFF OF NORTHERN BUSINESS INFORMATION INC A NEW YORK RESEARCH FIRM A SIMILAR SLIDE OCCURRED IN ITS TRANSMISSION BUSINESS TO REVERSE THIS DECLINE NORTHERN YESTERDAY PROMOTED TWO TOP EXECUTIVES AT NORTHERN TELECOM INC THE UMBRELLA SUBSIDIARY FOR ALL US GROUPS THE CHAIRMAN ROY MERRILLS WAS NAMED EXECUTIVE VICE PRESIDENT IN CHARGE OF MARKETING AND GOVERNMENT RELATIONS HE'LL NOW SUPERVISE OPERATIONS IN THE US CANADA THE CARRIBBEAN AND LATIN AMERICA IN ADDITION JAMES R LONG WHO HEADED NORTHERN'S MARKETING IN THE ASIA PACIFIC REGION IS NOW EXECUTIVE VICE PRESIDENT OF MARKETING FOR EUROPE AS WELL THESE DUTIES WERE HELD BY NORTHERN'S FORMER EXECUTIVE VICE PRESIDENT EDWARD LUCENTE WHO RESIGNED EARLIER THIS YEAR NORTHERN ALSO RETUNED MANAGEMENT OF ITS RESEARCH AND DEVELOPMENT WB BRIAN HEWAT WAS HIRED AS CHAIRMAN AND CHIEF EXECUTIVE OF BELL NORTHERN RESEARCH HE IS THE FORMER CHIEF EXECUTIVE OF STENTOR THE ALLIANCE OF CANADA'S NINE MAJOR TELEPHONE COMPANIES WE WANT TO SHARPEN THE R&D FOCUS THE SPOKESMAN SAID THE COMPANY'S ANNOUNCEMENT LAST FRIDAY THAT IT WOULD POST A LOSS FOR THE SECOND QUARTER CAME AFTER A 27 DROP IN FIRSTQUARTER NET INCOME THE COMPANY'S STOCK PLUNGED MORE THAN 22 THIS WEEK ON THE LATEST EARNINGS NEWS SPARKING LAWSUITS BY DISGRUNTLED SHAREHOLDERS SINCE THE FIRST QUARTER JEAN C MONTY NORTHERN'S PRESIDENT HAS BEEN SHAKING UP THE COMPANY HE WAS BROUGHT IN EARLIER THIS YEAR TO SUCCEED PAUL G STERN AS CHIEF EXECUTIVE LAST WEEK O BRADFORD BUTLER FORMER CHAIRMAN OF PROCTER & GAMBLE AND A NORTHERN BOARD MEMBER WAS NAMED TO SUCCEED MR STERN AS CHAIRMAN NORTHERN TELECOM SHARES FELL 625 CENTS A SHARE TO 26625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING