THE ROBERT WOOD JOHNSON FOUNDATION IN PRINCETON NJ HAS MADE A LOT OF FRIENDS BY GIVING AWAY NEARLY 150 MILLION FOR HEALTHCARE RESEARCH EACH YEAR BUT RECENTLY IT HAS MADE SOME ENEMIES IN MEMBERS OF A PHYSICIANS' GROUP WHO SAY THE FUND HAS A LIBERAL AGENDA FAVORING MANAGED CARE FOUNDATION OFFICIALS DISPUTE THAT PORTRAYAL THEY SAY THEIR 4 BILLION FUND AVOIDS OPENLY POLITICAL PROJECTS AND CAREFULLY SPREADS AROUND GRANTS TO AVOID IDEOLOGICAL BIAS STILL THE FOUNDATION'S PRESIDENT STEVEN SCHROEDER ACKNOWLEDGES THAT AS THE DEBATE OVER HEALTH REFORM INTENSIFIES HIS GROUP'S GRANTS ARE INCREASINGLY LIKELY TO BE CONTROVERSIAL TO AVOID CONTROVERSY MEANS DOING THINGS THAT ARE SO BLAND THAT THEY AREN'T IMPORTANT DR SCHROEDER SAYS WE'RE GOING TO GET OUR SHARE OF POTSHOTS IT'S A RISK THAT WE HAVE TO TAKE FOUNDATIONS IN GENERAL ENJOY WIDE LATITUDE TO BANKROLL CAUSES ACCORDING TO THE WISHES OF THEIR FOUNDERS OR ADMINISTRATORS THERE ARE LIMITS TO THAT FREEDOM THOUGH FOUNDATIONS MUST AVOID POLITICAL ACTIVITY SUCH AS CAMPAIGN CONTRIBUTIONS IN ORDER TO MAINTAIN THEIR TAXEXEMPT STATUS THE JOHNSON FOUNDATION SET UP BY A MEMBER OF THE FAMILY THAT FOUNDED JOHNSON & JOHNSON INC HAS LONG BEEN A FAVORITE SUGAR DADDY FOR HEALTHCARE ACADEMICS AND POLICY MAKERS EACH YEAR THE FOUNDATION AWARDS MORE THAN 500 GRANTS ALMOST ALL FOR HEALTHRELATED PROJECTS RECENT RECIPIENTS RANGE FROM THE RAND CORP THINK TANK IN SANTA MONICA CALIF TO THE EAST CENTRAL FLORIDA CHAPTER OF THE MARCH OF DIMES JOHNSON SPONSORED FOUR PUBLIC FORUMS LAST YEAR IN WHICH HILLARY RODHAM CLINTON DISCUSSED HEALTHCARE ISSUES IN ADDITION DOZENS OF FOUNDATIONGRANT RECIPIENTS HAVE BECOME PROMINENT IN THE HEALTHCARE DEBATE AMONG THEM ARE BROOKINGS INSTITUTION ECONOMIST HENRY AARON HARVARD POLLSTER ROBERT BLENDON AND FORMER CABINET SECRETARY JOSEPH CALIFANO THE JOHNSON FOUNDATION ALSO IS HELPING POLICY MAKERS IN 12 STATES INCLUDING FLORIDA WASHINGTON AND NEW YORK DRAFT THEIR OWN REFORM PROPOSALS WITH GRANTS OF ABOUT 800000 PER STATE MANY OF THESE STATES ARE MAKING HEAVY USE OF MANAGED CARE A FORM OF COSTCONTAINMENT IN WHICH LARGE BLOCKS OF PATIENTS ARE ROUTED TO THE MOST COSTEFFECTIVE GROUPS OF DOCTORS AND HOSPITALS THESE GRANTS HAVE SPARKED PROTESTS FROM A CONSERVATIVE DOCTORS' GROUP THE 4000MEMBER ASSOCIATION OF AMERICAN PHYSICIANS AND SURGEONS THE PHOENIXBASED AAPS IS MUCH SMALLER THAN THE MAIN DOCTORS' ORGANIZATION THE AMERICAN MEDICAL ASSOCIATION AND IS KNOWN AS A BIT OF A GADFLY YOU'LL NEVER FIND THE JOHNSON FOUNDATION SUPPORTING A FREEMARKET SYSTEM SAYS JANE ORIENT EXECUTIVE DIRECTOR OF THE AAPS ALL THEIR STUDIES IN STATES SEEM TO HAVE THE OBJECTIVE OF INCREASING THE USE OF MANAGED CARE AT A RECENT NEWS CONFERENCE DR ORIENT CONTENDED THAT THE JOHNSON FOUNDATION WANTS TO REMAKE AMERICAN MEDICINE ALONG ITS OWN MODEL FOUNDATION EXECUTIVES AND GRANT RECIPIENTS SAY THAT DR ORIENT'S CHARGES ARE GROSSLY EXAGGERATED STILL THE SUDDEN BROADSIDE FROM THE AAPS APPEARS TO HAVE TOUCHED OFF SOME SOULSEARCHING WITHIN BOTH THE FOUNDATION AND ITS MAJOR GRANT RECIPIENTS ABOUT WHETHER THE BIG FUND IS TOO CLOSE TO SOME LIBERAL PLAYERS IN THE HEALTHCARE DEBATE TO THE EXTENT THAT WE'RE SEEN AS PARTISAN IT BLURS OUR EFFECTIVENESS SAYS THE FOUNDATION'S DR SCHROEDER THE FOUNDATION HAS TO BE SOMEWHAT CAREFUL ABOUT THE TERMS THAT IT USES IN PUBLIC SAYS SHELDON GREENFIELD HEAD OF HEALTHSCIENCES RESEARCH AT TUFTS UNIVERSITY AND A GRANT RECIPIENT IF THEY TALK ABOUT LOWCOST HIGHQUALITY MEDICINE WITH EASY ACCESS FOR PATIENTS THEY CAN CALL FOR WHAT THE COUNTRY NEEDS WITHOUT EVER CALLING IT MANAGED CARE NANCY BARRAND A SENIOR PROGRAM OFFICER AT THE JOHNSON FOUNDATION DEFENDS THE STATE AWARDS THE STATES THAT WE PICKED SPANNED THE ENTIRE POLITICAL SPECTRUM OF HEALTHCARE REFORM SHE SAYS OKLAHOMA FOR EXAMPLE IS USING FOUNDATION MONEY TO TRY TO DEVELOP TAXFREE MEDICALSAVINGS ACCOUNTS A CONCEPT FAVORED BY MANY CONSERVATIVES NEW MEXICO IS TINKERING WITH A COOPERATIVE APPROACH TO COVERING THE UNINSURED THAT DOESN'T FIT ANY IDEOLOGICAL LABEL AND NEW YORK STATE HAS USED PART OF ITS GRANT TO LOOK AT A GOVERNMENTRUN SINGLEPAYER INSURANCE SYSTEM AN IDEA WITH LIBERAL BACKING MOST STATES GETTING GRANTS HAVEN'T YET PASSED MAJOR HEALTHCARE LEGISLATION BUT WASHINGTON STATE LAST YEAR ENACTED A PLAN THAT RELIES HEAVILY ON MANAGED CARE STATE OFFICIALS SAY THE JOHNSON MONEY PLAYED A BIG ROLE PEOPLE WE BROUGHT ON BOARD BECAUSE OF ROBERT WOOD JOHNSON DID THE COSTING OUT AND THE STATISTICAL ANALYSIS SAYS SUSAN CRYSTAL A HEALTHCARE SPECIALIST IN THE GOVERNOR'S OFFICE WE HAD THE TOOLS TO BE RESPONSIVE TO THE STATE LEGISLATURE WE WOULD HAVE BEEN REALLY LOST WITHOUT THEM SOME WASHINGTON DOCTORS HOWEVER ARE MORE CRITICAL OF THE FOUNDATION'S ROLE MICHAEL SCHLITT A SEATTLE NEUROSURGEON SAYS HE IS UNHAPPY THAT THE JOHNSON FOUNDATION IS USING THIS ENORMOUS TAXFREE AMOUNT OF MONEY TO ADVANCE MANAGED CARE UNDER THE STATE'S NEW SYSTEM HEALTH PLANS MAY PRESSURE DR SCHLITT TO LOWER HIS RATES THEY ALSO MAY REQUIRE REFERRALS BEFORE HE CAN SEE PATIENTS ON TOP OF HEALTHCARE REFORM THE JOHNSON FOUNDATION ALSO FUNDS MANY PROJECTS THAT AREN'T EXPLICITLY CONTROVERSIAL INCLUDING SUBSTANCEABUSE PROGRAMS CARE FOR THE CHRONICALLY ILL AND EFFORTS TO WIDEN PUBLIC ACCESS TO HEALTH CARE IN BOSTON FOR EXAMPLE TUFTS MEDICAL SCHOOL HAS BEGUN SETTING ASIDE 10 OF THE PLACES IN ITS ENTERING CLASS FOR STUDENTS WHO ARE REGARDED AS ESPECIALLY LIKELY TO GO INTO PRIMARY CARE A GRANT FROM THE JOHNSON FOUNDATION HELPED TUFTS IDENTIFY TRAITS SUCH AS A NONSCIENCE BACKGROUND OR A LOT OF COMMUNITY VOLUNTEER WORK THAT MAY HELP SPOT FUTURE PRIMARYCARE DOCTORS WHEN THEY APPLY TO MEDICAL SCHOOL THE FOUNDATION ALSO PAYS FOR DOZENS OF DOCTORS A YEAR TO BECOME ROBERT WOOD JOHNSON FELLOWS OR CLINICAL SCHOLARS THESE PHYSICIANS WIDEN THEIR HORIZONS BY JOINING CONGRESSIONAL STAFFS IN WASHINGTON CARRYING OUT HEALTHSCIENCES RESEARCH OR GETTING INVOLVED IN OTHER PUBLICPOLICY PROJECTS WHILE SOME OF THESE DOCTORS RETURN TO PRIVATE PRACTICE MANY GO ON TO HIGHLEVEL POSITIONS IN STATE GOVERNMENT OR HEALTH ORGANIZATIONS EVEN THESE PROGRAMS HAVE ATTRACTED THE AAPS'S IRE THE DOCTORS' GROUP IS PROTESTING THE WHITE HOUSE DECISION LAST YEAR TO LET SIX JOHNSON FELLOWS BE PART OF ITS 500MEMBER HEALTHCARE TASK FORCE IN A SUIT IN WASHINGTON DC FEDERAL COURT AGAINST THE TASK FORCE THE DOCTORS' GROUP ACCUSES THE JOHNSON FOUNDATION OF USING BUREAUCRATIC YET SECRETIVE MEANS TO INFLUENCE GOVERNMENT DECISIONMAKING THAT CHARGE BRINGS A LAUGH AND A QUICK DENIAL FROM THE FOUNDATION'S DR SCHROEDER FOR SOME LONGTIME JOHNSON GRANT RECIPIENTS IT'S SURPRISING TO SEE THE FOUNDATION ON THE DEFENSIVE BUT THEN THESE OBSERVERS ARE HARDLY IMPARTIAL THE ROBERT WOOD JOHNSON FOUNDATION ACCOUNTS FOR 70 OF MY REVENUE SAYS DAVID HELMS PRESIDENT OF THE ALPHA CENTER A WASHINGTON DCBASED RESEARCH GROUP HEY I THINK THEY'RE GREAT TO WORK WITH SEE RELATED LETTER LETTERS TO THE EDITOR FOUNDATION BRATS DESPOIL LEGACIES WSJ JUNE 8 1994 9404260141 YY94 MM06 9406070059 940413 THE RADIATION SCARE'S REAL FALLOUT BY MAX BOOT IN NOVEMBER THE ALBUQUERQUE TRIBUNE PUBLISHED THE PLUTONIUM EXPERIMENT A SERIES OF STORIES BY REPORTER EILEEN WELSOME ABOUT RADIATION TESTS CONDUCTED BY THE US GOVERNMENT ON HUMAN SUBJECTS IN 194546 MS WELSOME'S REVELATIONS HAVE BEEN SPLASHED ACROSS FRONT PAGES FROM COAST TO COAST AND YESTERDAY WERE REWARDED WITH A PULITZER PRIZE UNFORTUNATELY THE HYPE OVER THE RADIATION EXPERIMENTS FAR EXCEEDS THEIR NEWS VALUE THERE IS NOTHING PARTICULARLY NEW HERE SOME OF THE EXPERIMENTS HAVE BEEN PUBLIC KNOWLEDGE AT LEAST SINCE 1971 WHEN THE WASHINGTON POST REVEALED THAT PATIENTS HAD BEEN IRRADIATED AT THE UNIVERSITY OF CINCINNATI THE EXPERIMENT THAT MS WELSOME FOCUSED ON WAS FIRST REPORTED IN 1976 IN A NEWSLETTER CALLED SCIENCE TRENDS ANTINUCLEAR ACTIVISTS SOME ASSOCIATED WITH UNIONS REPRESENTING NUCLEARPLANT WORKERS PICKED UP THE TRAIL AND TRIED TO GET THE PRESS AND POLITICIANS INTERESTED IN OTHER EXPERIMENTS THIRTYONE TESTS WERE DOCUMENTED IN A 1986 REPORT ISSUED BY REP ED MARKEY D MASS AMERICAN NUCLEAR GUINEA PIGS THREE DECADES OF RADIATION EXPERIMENTS ON US CITIZENS DESPITE THE OVERWROUGHT TITLE THE PRESS PAID LITTLE ATTENTION THE STORY WAS BURIED DEEP IN THE NEW YORK TIMES THE MOST TROUBLING EXPERIMENT REPORTED BY REP MARKEY'S STAFF AND SUBSEQUENTLY BY MS WELSOME INVOLVED AN ATTEMPT IN 194546 BY THE MILITARY TO FIGURE OUT HOW MUCH PLUTONIUM PEOPLE COULD SAFELY BE EXPOSED TO THIS WAS NOT SOME SADISTIC DESIRE BY THE MILITARYINDUSTRIAL COMPLEX IT WAS OF VITAL IMPORTANCE BECAUSE THOUSANDS OF WORKERS WERE TOILING ON THE CRASH US ATOMIC PROGRAM ACCORDING TO PATRICIA DURBIN A BIOPHYSICIST WHO WORKED WITH THE SCIENTISTS WHO CONDUCTED THE TESTS THE ALTERNATIVE WAS TO UTILIZE THE ENTIRE WORK FORCE HANDLING PLUTONIUM HUNDREDS OF YOUNG AND VIGOROUS PEOPLE IN A GIANT EXPERIMENT TO SEE WHETHER THE ANIMAL DATA WERE PROVIDING THE RIGHT INFORMATION ABOUT HOW MUCH PLUTONIUM THE BODY COULD TAKE TRACE ELEMENTS OF PLUTONIUM239 A RADIOACTIVE ISOTOPE WERE ADMINISTERED TO 18 PEOPLE ALL OF WHOM HAD BEEN CERTIFIED BY THEIR PHYSICIANS AS NOT EXPECTED TO LIVE MORE THAN 10 YEARS TWELVE OF THE VOLUNTEERS DIED AS EXPECTED SHORTLY AFTER THE EXPERIMENTS THE REST LIVED FOR YEARS AFTERWARD WITH THE FINAL ONE NOT DYING UNTIL 1991 JOHN RUNDO A BIOPHYSICIST AT THE ARGONNE NATIONAL LABORATORY DID A FOLLOWUP STUDY IN 1973 ON ALL THE VOLUNTEERS BOTH LIVING AND DEAD THE EVIDENCE HE TOLD CONGRESS IN FEBRUARY IS THAT ALL THE PERSONS INJECTED WITH PLUTONIUM DIED OF CAUSES UNRELATED TO THEIR INJECTED RADIOACTIVITY THE MOST TROUBLING ELEMENT OF THE PLUTONIUM TESTS WAS THE LACK OF INFORMED CONSENT GREGG HERKEN A HISTORIAN FROM THE NATIONAL AIR AND SPACE MUSEUM TOLD CONGRESS THAT MOST OF THE VOLUNTEERS WERE INFORMED ONLY THAT THEY WERE TO RECEIVE A RADIOACTIVE SUBSTANCE HAVING CERTAIN PROPERTIES AT THE TIME EVERYTHING RELATED TO THE ATOMICBOMB PROJECT EVEN THE WORD PLUTONIUM WAS STRICTLY CLASSIFIED BUT IT'S DOUBTFUL THAT ANY VOLUNTEERS IN 1945 OR 1946 EVEN IF THEY HAD KNOWN ABOUT THE PLUTONIUM COULD HAVE GIVEN INFORMED CONSENT FOR SUCH EXPERIMENTS AT THE TIME AFTER ALL VERY LITTLE WAS KNOWN ABOUT THE DANGERS OF PLUTONIUM OR ABOUT MANY OTHER TOXIC SUBSTANCES EVEN YEARS LATER SHOE STORES ROUTINELY OFFERED TO XRAY CUSTOMERS' FEET OBLIVIOUS TO RADIATION HAZARDS THE SHOE STORES ASKED FOR CONSENT BUT IT WASN'T INFORMED CONSENT SAYS THOMAS JUKES A RETIRED BIOPHYSICIST AT THE UNIVERSITY OF CALIFORNIA BERKELEY IT WAS THE SAME THING WITH MEDICAL EXPERIMENTS THIS HAS NOW BECOME AN ISSUE BECAUSE OF MS WELSOME'S PULITZERWINNING ARTICLES HER STORIES DIDN'T CONTRIBUTE MUCH NEW INFORMATION ABOUT THE SCOPE OR NATURE OF THE TESTING BUT THEY ADDED A HUMAN INTEREST SPIN SHE MANAGED TO IDENTIFY A NUMBER OF THE PEOPLE INVOLVED IN THE EXPERIMENTS AND INTERVIEWED THEIR RELATIVES AT LENGTH EVEN HER COMPELLING WORK MIGHT HAVE GONE THE WAY OF THE MARKEY REPORT WERE IT NOT FOR ENERGY SECRETARY HAZEL O'LEARY WHO HELD A NEWS CONFERENCE ON DEC 7 TO PUBLICLY ACKNOWLEDGE THE EXISTENCE OF THE PLUTONIUM EXPERIMENTS AND MANY OTHERS HOW DID MRS O'LEARY FIND OUT ABOUT THE TRIBUNE ARTICLES ACCORDING TO AN INTERVIEW SHE GAVE TO THE NEW YORK TIMES THE ARTICLES WERE BROUGHT TO HER ATTENTION BY A TOP AIDE DAN REICHER MR REICHER IS A FORMER LAWYER FOR THE ANTINUCLEAR NATURAL RESOURCES DEFENSE COUNCIL WHILE AT THE NRDC MR REICHER FILED SUIT IN THE 1980S TO STOP THE CONSTRUCTION OF A PLUTONIUM PLANT IN IDAHO THUS THE WELSOME ARTICLES WERE USED TO ADVANCE AN ENVIRONMENTALIST AGENDA THAT TRIES TO SCARE THE PUBLIC ABOUT THE DANGERS OF RADIATION IN ORDER TO SHUT DOWN THE NUCLEAR POWER INDUSTRY THE BATON IN THE RACE TO HYPE THE RADIATION TESTS HAS NOW PASSED FROM ANTINUCLEAR ACTIVISTS AND REPORTERS TO TORT LAWYERS A GROUP OF SAN FRANCISCO LAWYERS INCLUDING THE FABLED KING OF TORTS MELVIN BELLI HAS FILED CLASSACTION SUITS ON BEHALF OF PEOPLE WHO WERE INVOLVED IN EXPERIMENTS AT VANDERBILT UNIVERSITY IN THE 1940S AND THE UNIVERSITY OF CINCINNATI IN THE 1960S OUR CASES CAME TO LIGHT AS A RESULT OF THE DISCLOSURES BY HAZEL O'LEARY AND BY EILEEN WELSOME'S WORK IN ALBUQUERQUE SAYS ROBERT NELSON ONE OF THE LAWYERS WORKING WITH MR BELLI THE CINCINNATI EXPERIMENTS WERE THE SUBJECT OF A CONGRESSIONAL HEARING ON MONDAY WHICH NOT INCIDENTALLY GAVE PLENTY OF FAVORABLE PUBLICITY TO MR BELLI'S CLIENTS THE LAWYERS CHARGE THAT EUGENE SAENGER A RADIOLOGIST AT THE UNIVERSITY OF CINCINNATI KNOWINGLY EXPOSED PATIENTS TO LETHAL DOSES OF RADIATION IN ORDER TO TEST THEIR REACTIONS FOR THE PENTAGON WHAT ACTUALLY HAPPENED IS THAT DR SAENGER WAS TESTING THE USE OF RADIATION THERAPY INSTEAD OF CHEMOTHERAPY FOR PATIENTS WITH ADVANCED CANCERS DR SAENGER ALSO RECEIVED DEFENSE DEPARTMENT FUNDING TO REPORT ON THE EFFECTS OF RADIATION BUT HE STRESSED TO CONGRESS TREATMENT WAS GIVEN ONLY IF BENEFIT TO THE PATIENT WAS ANTICIPATED BETWEEN 1960 AND 1971 HE IRRADIATED 88 TERMINALLY ILL VOLUNTEERS IN AN EXPERIMENT REVIEWED AND APPROVED BY OTHER SCIENTISTS ALL OF THE VOLUNTEERS HAD THE RISKS EXPLAINED TO THEM AND IN THE LATER YEARS SIGNED CONSENT FORMS SAYING THEY UNDERSTOOD THAT WHOLE OR PARTIAL BODY IRRADIATION WOULD BE PERFORMED ON THEM NOW MR BELLI'S CLIENTS SAY THEY DON'T REMEMBER IF THEY OR THEIR RELATIVES SIGNED SUCH FORMS TWENTY OF THE PATIENTS LIVED LONGER THAN A YEAR ONE LIVED NINE YEARS AND ONE PATIENT DONNA WHITE CHRISTY WHO HAS A TYPE OF BONE MARROW CANCER KNOWN AS EWINGS SARCOMA REMAINS ALIVE TODAY WHAT'S EVEN MORE AMAZING THAN HER LONGEVITY IS THAT MS CHRISTY IS NOW MR BELLI'S PLAINTIFF IN THE SUIT AGAINST THE UNIVERSITY AS R JOSEPH PARKER DR SAENGER'S ATTORNEY NOTES BUT FOR THAT TREATMENT THAT WOMAN WOULD BE DEAD TODAY THE CHANCES OF SURVIVAL WITH EWING'S SARCOMA ARE 10 JUST BECAUSE THE BELLI LAWSUITS ARE BASELESS DOESN'T MEAN THEY'LL GET THROWN OUT OF COURT NOR DOES IT MEAN THAT OTHERS WON'T BE FILED PLENTY OF LAWYERS ARE SNIFFING AROUND THE RADIATION EXPERIMENTS IN SEARCH OF LIKELY PLAINTIFFS IT DOES PRESENT ANOTHER PRACTICE OPPORTUNITY FOR THE EVERGROWING NUMBER OF LAWYERS IN WASHINGTON TIMOTHY MAY THE MANAGING PARTNER OF THE POWERHOUSE FIRM PATTON BOGGS & BLOW RECENTLY TOLD LEGAL TIMES THE HISTORY OF OTHER RADIATION LAWSUITS PROVIDES A PRETTY GOOD CLUE ABOUT WHAT'LL HAPPEN IN THE 1980S THOUSANDS OF ALLEGED RADIATION VICTIMS INCLUDING VETERANS NUCLEAR PLANT WORKERS AND THOSE WHO LIVED NEAR ATOMIC FACILITIES OR TESTING GROUNDS FILED SUITS AGAINST THE GOVERNMENT AND VARIOUS CONTRACTORS A 1950 SUPREME COURT RULING THAT HELD THE GOVERNMENT IS IMMUNE FROM SUITS BROUGHT BY SOLDIERS EXPOSED TO ATOMIC RADIATION SHOULD HAVE QUASHED MANY OF THE ACTIONS BUT INVENTIVE LAWYERS FOUND A WAY AROUND THAT THEY SUED THE CONTRACTORS TRYING TO STEM THE FLOW OF LITIGATION CONGRESS IN 1984 LIMITED DEFENSE CONTRACTORS' LIABILITY THEN IN 1988 LAWMAKERS PASSED A RADIATION VICTIMS COMPENSATION ACT OFFERING MONEY TO SURVIVORS IN RETURN FOR A PLEDGE NOT TO SUE BUT LIKE THE ENERGIZER BUNNY MANY OF THE SUITS KEEP GOING AND GOING AND GOING THEY HAVE EVEN SPAWNED A LITTER OF LAWYERS LIKE FORMER INTERIOR SECRETARY STEWART UDALL WHO DO ALMOST NOTHING ELSE SO LOOK FOR LONG YEARS OF COSTLY LAWSUITS OVER RADIATION EXPERIMENTS WHILE THAT'S GOING ON ANOTHER SET OF LAWYERS WILL BE LOBBYING BACK AND FORTH IN WASHINGTON OVER WHAT RESPONSE IF ANY THE FEDERAL GOVERNMENT SHOULD MAKE AS USUAL IN CASES OF THIS KIND IT'LL BE THE ATTORNEYS NOT THE ALLEGED VICTIMS WHO'LL RECEIVE THE MOST COMPENSATION THAT'S THE FALLOUT FROM THE RADIATION EXPERIMENTS STORY UNCOVERED BY EILEEN WELSOME MR BOOT IS AN ASSISTANT FEATURES EDITOR ON THE JOURNAL EDITORIAL PAGE SEE RELATED LETTER LETTERS TO THE EDITOR HUMAN GUINEA PIGS DESERVE JUSTICE WSJ APRIL 20 1994 SEE RELATED LETTERS LETTERS TO THE EDITOR THE HYSTERICAL FALLOUT OVER NUCLEAR MEDICINE WSJ MAY 11 1994 SEE RELATED LETTER LETTERS TO THE EDITOR WE REPORTED A STORY NOW IS THAT HYSTERIA WSJ JUNE 7 1994 9404130072 9404200091 9405110115 YY94 MM04 YY94 MM05 YY94 MM06 9406030078 940420 ECONOMY REPUBLICANS FIND PROGRESSIVE RELIGION IN PUSH TO TAX WORKER HEALTH BENEFITS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONSERVATIVE REPUBLICANS ARE SOUNDING AN OLDFASHIONED DEMOCRATIC THEME REDISTRIBUTION OF WEALTH BY MAKING THE FEDERAL TAX CODE MORE PROGRESSIVE AS THEY CHALLENGE THE CLINTON HEALTHREFORM PLAN WITH STRIKING UNITY REPUBLICAN ALTERNATIVES TO THE CLINTON PLAN TAKE AIM AT CURRENT TAX RULES SHELTERING EMPLOYERPAID HEALTH BENEFITS NO LESS THAN THE CONSERVATIVE HERITAGE FOUNDATION IS LEADING AN EFFORT TO WIPE OUT THE ENTIRE 74 BILLIONAYEAR TAX BREAK FOR INDIVIDUALS AND REALLOCATE THE MONEY AS A TAX CREDIT TO HELP LOW AND MIDDLEINCOME FAMILIES BUY HEALTH INSURANCE THE GOAL ISN'T TO SOAK THE RICH SO MUCH AS TO AVOID GOVERNMENT PRICE CONTROLS AND USE THE TAX CODE TO MAKE CONSUMERS MORE COSTCONSCIOUS BUT LIBERAL RHETORIC PROVIDES A USEFUL RATIONALE ORGANIZED LABOR REMAINS THE BIGGEST BARRIER TO TAXING BENEFITS BUT IT MAY HAVE TO RETHINK ITS POSITION THE SUCCESS OF THE CLINTON INITIATIVE IN CONGRESS RESTS ON FINDING NEW REVENUE TO FINANCE EXPANDED COVERAGE AND SUBSIDIES FOR SMALL BUSINESSES THE MONEY THAT COULD BE RAISED BY LIMITING THE TAX BREAK IS INVITING TO DEMOCRATS WHO MAY URGE LABOR TO SHIFT ITS STANCE TO HELP PLACATE SMALL BUSINESS STILL TAXING HEALTH BENEFITS FOR THE WEALTHY AT LEAST WAS AMONG THE OPTIONS DISCUSSED BY HOUSE WAYS AND MEANS COMMITTEE DEMOCRATS LAST WEEK AND PROLABOR LAWMAKERS SHOWED SUPPORT FOR THE IDEA IN THE PANEL'S HEALTH SUBCOMMITTEE LAST MONTH THE WHITE HOUSE HAS KEPT A LOW PROFILE ON THE TAX ISSUE MANY OF ITS HEALTHCARE FINANCING OPTIONS SUCH AS CIGARETTE AND PAYROLL TAXES WOULD FALL HEAVILY ON LARGELY DEMOCRATIC WORKINGCLASS FAMILIES ECONOMISTS SAY ITS PROPOSAL TO REQUIRE BUSINESS TO HELP PAY FOR WORKERS' INSURANCE WOULD EAT INTO WAGES AS WELL THE ADMINISTRATION HAS RELIED SO FAR ON DIRECT SUBSIDIES TO OFFSET HIGHER COSTS AND GIVE A MORE PROGRESSIVE CAST TO ITS PACKAGE BUT THIS APPROACH WOULD BE EXPENSIVE THE IDEA OF TRIMMING TAX BENEFITS INSTEAD AND RECYCLING THE SAVINGS TO HELP LOWERINCOME FAMILIES PAY HEALTH BILLS STRIKES MANY AS MORE EFFICIENT DESPITE LABOR'S BLUECOLLAR RHETORIC IN FAVOR OF THE TAX SHELTER FOR HEALTH BENEFITS MOST STUDIES SHOW THAT THE CURRENT ARRANGEMENT REALLY DOES FAVOR THE WEALTHY THE CONGRESSIONAL BUDGET OFFICE LAST MONTH ESTIMATED THAT THE TAX BREAK FOR A FAMILY EARNING 20000 TO 30000 AVERAGES 500 A YEAR COMPARED WITH 1590 FOR THOSE EARNING 75000 TO 100000 BUT THE TAX BREAK IS DIFFICULT TO ATTACK BECAUSE SO MANY HOUSEHOLDS SHARE IN THE BENEFIT WHILE THE RICH GET MORE IN DOLLARS THE SHELTER ALSO IS IMPORTANT TO THE FAR MORE NUMEROUS MIDDLEINCOME FAMILIES THE CBO REPORT SHOWS THE AVERAGE BENEFIT IS A STRIKINGLY CONSISTENT 23 OF AFTERTAX INCOME FOR FAMILIES WITH INCOME OF 20000 TO 100000 ULTIMATELY THE DEBATE MAY TURN ON WHERE TO CUT OFF THE TAX BREAK AND HOW TO RECYCLE THE RESULTING REVENUE WHILE THE HERITAGE PLAN WOULD DO AWAY WITH THE SHELTER ENTIRELY FOR INDIVIDUALS SEVERAL VARIATIONS WOULD SET A CAP ON THE EMPLOYER OR EMPLOYEE SIDE OF THE LEDGER OR BOTH A PLAN PROPOSED BY REP JIM MCCRERY R LA FOR INSTANCE WOULD LIMIT THE TAX EXCLUSION FOR INDIVIDUALS AND THE TAX DEDUCTION FOR EMPLOYERS TO 2500 FOR AN ADULT OR 5000 FOR A FAMILY A 5000 CAP WOULDN'T AFFECT A WORKER MAKING 40000 A YEAR WITH 5000 IN FAMILY HEALTH BENEFITS A 4000 CAP BY CONTRAST WOULD COST SUCH A WORKER 150 MORE IN TAXES ASSUMING A 15 TAX RATE ONE OPTION FOR DEMOCRATS WOULD BE TO PHASE OUT THE TAX PREFERENCES AT HIGHERINCOME LEVELS INDIVIDUALS EARNING 40000 OR LESS COULD BE LEFT UNTOUCHED FOR INSTANCE AND THE EXCLUSION COULD BE PROGRESSIVELY REDUCED AT HIGHER INCOME LEVELS UNTIL IT IS FULLY PHASED OUT FOR THOSE EARNING 70000 OR MORE THE BIGGER POLITICAL QUESTION IS WHETHER DEMOCRATS AND REPUBLICANS COULD UNITE BEHIND A SPECIFIC PLAN GOP MODERATES IN THE SENATE ARE IN THE STRONGEST POSITION TO BARGAIN BUT HOUSE DEMOCRATS FEAR THAT IF THEY RISE TO THE CONSERVATIVE CHALLENGE AND BACK A PLAN THAT ULTIMATELY FAILS THEY WILL HAVE ACCOMPLISHED NOTHING BUT ANGER THEIR LABOR FRIENDS AMONG REPUBLICANS MEANWHILE THERE IS A CERTAIN NERVOUSNESS THAT THE ISSUE COULD BE SEEN AS MERELY A MIDDLECLASS TAX RISE AND REBOUND TO THE PARTY'S DETRIMENT WILLIAM KRISTOL WHO HAS SOUGHT TO DAMP REPUBLICAN HOPES OF COMPETING WITH THE CLINTON HEALTH INITIATIVE DESCRIBES THE HERITAGE PLAN AS A STRATEGIC ERROR AND SEN DON NICKLES R OKLA A CHIEF SPONSOR AND MEMBER OF THE GOP LEADERSHIP IS LEERY OF SEEMING TOO EAGER TO REALLOCATE WEALTH I WOULDN'T SAY PROGRESSIVE SAYS THE OKLAHOMA CONSERVATIVE WHO PALES AT THE NOTION OF ANYTHING LIBERAL I'D SAY FAIR LOUISIANA REP MCCRERY ROOTED IN HUEY LONG'S BACKYARD ISN'T AS SHY ABOUT CHALLENGING DEMOCRATS WITH THEIR OWN VALUES I'M AS REPUBLICAN AS ONE CAN GET SAYS THE SOFTSPOKEN FORMER GEORGIAPACIFIC CORP ATTORNEY AND MEMBER OF THE WAYS AND MEANS HEALTH SUBCOMMITTEE BUT IT CERTAINLY FITS WITH THE DEMOCRATS' LONGHELD BELIEF THAT THE TAX SYSTEM SHOULD BE MADE MORE PROGRESSIVE SEE RELATED LETTER LETTERS TO THE EDITOR WITH OUR HEALTH PLAN EVERYONE GETS TAX CUT WSJ JUNE 3 1994 9404200144 YY94 MM06 9406020155 940421 KIDDER PEABODY FIRED BOND AIDE ON TIES TO RIVAL OUSTED EXECUTIVE WORKED WITH FRENCH COMPANY IN CONSULTANT'S POST BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN ANOTHER SIGN OF PROBLEMS IN ITS BOND OPERATIONS KIDDER PEABODY GROUP INC FIRED A BONDDERIVATIVES EXECUTIVE EARLIER THIS YEAR AFTER CONCLUDING HE WAS ALSO WORKING FOR A RIVAL FIRM WHILE WORKING AT KIDDER ACCORDING TO KIDDER EXECUTIVES THE DISMISSED EXECUTIVE CLIFFORD KAPLAN STRUCTURED BONDDERIVATIVES DEALS FOR KIDDER MR KAPLAN A 28YEAROLD KIDDER VICE PRESIDENT COULDN'T BE REACHED FOR COMMENT YESTERDAY THE OUSTER OF MR KAPLAN APPEARS TO BE UNRELATED TO THE RECENT FIRING OF JOSEPH JETT KIDDER'S FORMER GOVERNMENTBOND CHIEF THE GENERAL ELECTRIC CO UNIT FIRED MR JETT OVER THE WEEKEND ACCUSING HIM OF CREATING PHANTOM TRADES AND PROFITS IN THE GOVERNMENTSTRIPS MARKET INFLATING KIDDER'S INCOME BY 350 MILLION OVER MORE THAN A YEAR IN AN ALLEGED BID TO PROP HIS PERFORMANCEBASED BONUS BUT WITH ITS BONDTRADING WOES DEEPENING KIDDER HAS ALSO FIRED TWO OTHER GOVERNMENTBOND TRADERS IN RECENT WEEKS FOR TRADING LOSSES AND MAINTAINING UNHEDGED TRADING POSITIONS THE KIDDER EXECUTIVES SAID KIDDER REFUSED TO NAME THE TRADERS BUT SAID THOSE DISMISSALS ALSO ARE UNRELATED TO THE JETT CASE KIDDER EXECUTIVES SAY THEY CONCLUDED IN JANUARY THAT MR KAPLAN THE DERIVATIVES EXECUTIVE HAD A SALARIED CONSULTING POSITION WITH A US UNIT OF LA COMPAGNIE FINANCIERE EDMOND DE ROTHSCHILD BANQUE A PARIS INVESTMENT FIRM WHILE HE WAS WORKING AT KIDDER KIDDER THEN FIRED MR KAPLAN AND REFERRED THE MATTER TO ITS LEGAL DEPARTMENT THE PEOPLE AT KIDDER SAID ROTHSCHILD AND KNOX PARTNERS ITS US UNIT COULDN'T BE REACHED FOR COMMENT YESTERDAY SHORTLY BEFORE KIDDER DISMISSED MR KAPLAN THE FIRM SUFFERED A 17 MILLION LOSS ON A DERIVATIVES DEAL THAT HE HAD COORDINATED KIDDER EXECUTIVES SAID THE RECENT DISMISSALS RAISE QUESTIONS ABOUT THE EFFORTS OF KIDDER TO SUPERVISE ITS BOND AND DERIVATIVES GROUPS ANALYSTS SAY KIDDER FOR ITS PART SAYS THERE WAS NO WAY THE FIRM COULD HAVE KNOWN ABOUT MR KAPLAN'S SIDE WORKING ARRANGEMENT THE FIRM SAYS IT HASN'T REPORTED THE MATTER TO REGULATORY AUTHORITIES IT'S UNCLEAR WHETHER THE DUAL WORKING RELATIONSHIPS WOULD BE ILLEGAL BECAUSE ROTHSCHILD IS A FOREIGN ENTITY SECURITIES EXECUTIVES SAY YESTERDAY GE TOOK A PREVIOUSLY ANNOUNCED 210 MILLION AFTERTAX CHARGE FOR IRREGULAR TRADING ACTIVITIES AT KIDDER OF WHICH 139 MILLION WAS RELATED TO EARLIER PERIODS KIDDER EARNED 62 MILLION IN THE FIRST QUARTER BEFORE THE CHARGE GE SAID KIDDER HAS ALSO ANNOUNCED THAT IT SUSPENDED SIX OTHERS IN BOND TRADING SUPPORT AND TRADEPROCESSING AREAS FROM THEIR POSTS PENDING AN INTERNAL INVESTIGATION OF THE JETT CASE KIDDER EXECUTIVES SAY THEY DISCOVERED MR KAPLAN'S CONSULTING ARRANGEMENT WHEN ROTHSCHILD DEMANDED THAT KIDDER PAY EXPENSES INCLUDING TRAVEL COSTS INCURRED BY MR KAPLAN WHICH ROTHSCHILD BELIEVED TO BE RELATED TO KIDDER BUSINESS THE PEOPLE SAY AMONG THE EXPENSES THE PEOPLE SAY WERE UNPAID CREDITCARD CHARGES INCLUDING PAYMENT FOR A FUR COAT KIDDER ENDED UP QUIETLY SETTLING THE MATTER WITH ROTHSCHILD WITHOUT PAYING THE EXPENSES THE PEOPLE SAY BUT THE ARRANGEMENT RAISED SOME VERY SERIOUS BUSINESS CONFLICTS A KIDDER EXECUTIVE SAYS EVEN BEFORE KIDDER DISCOVERED THE CONSULTING DEAL MR KAPLAN APPEARED TO BE ON SHAKY GROUND STEMMING FROM A DERIVATIVES DEAL HE COORDINATED LATE LAST YEAR THE TRANSACTION INVOLVED DERIVATIVEENHANCED ASSETLINKED SECURITIES OR DELS WHICH WERE CUSTOMIZED NOTES PACKAGED BY KIDDER INVOLVING ITALIAN GOVERNMENT BONDS THAT WERE SWAPPED INTO COUPONS IN ANOTHER CURRENCY KIDDER PLANNED TO SET UP THE DEAL THROUGH A SPECIALPURPOSE VEHICLE INCORPORATED IN LUXEMBOURG BUT UNANTICIPATED TAX PROBLEMS SURFACED WITH THE LUXEMBOURG LOCATION FORCING KIDDER EVENTUALLY TO INCORPORATE THE DEAL IN THE NETHERLANDS THAT SWITCH DELAYED THE SETTLEMENT AND CLOSING OF THE TRANSACTION COSTING KIDDER AGGREGATE LOSSES INCLUDING LEGAL FEES OF 17 MILLION THE PEOPLE SAY WE NEEDED ADDITIONAL TIME TO CLOSE THE DEAL AND HAD SOME LEGALCOST OVERRUNS A KIDDER EXECUTIVE SAID SEE RELATED LETTER LETTERS TO THE EDITOR I NEVER TRIED TO HIDE ROTHSCHILD CONNECTION WSJ JUNE 2 1994 9404210024 YY94 MM06 9406020069 940429 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER CLINTON'S CABINET GROWS INCREASINGLY IRRELEVANT TO POLICY MAKING HHS SECRETARY SHALALA IS WHACKED TWICE BY THE WHITE HOUSE LOSING OUT ON HER BID FOR A BIGGER WELFAREOVERHAUL PLAN AND ON THE PROPOSED MOVE OF SOCIAL SECURITY FROM HER AGENCY EPA CHIEF BROWNER IS DERIDED BY ENVIRONMENTALISTS AS BEING ROUTINELY STEAMROLLED BY WHITE HOUSE OFFICIALS INFLUENTIAL CONGRESSIONAL DEMOCRATS SNICKER AT SECRETARY OF STATE CHRISTOPHER'S LOW INFLUENCE CABINET MEMBERS HAVE THEIR OWN GRIPES AT A SPECIAL GATHERING LAST WEEKEND THEY SAID THEY WANT MORE INFORMAL MEETINGS WITH CLINTON THEY COMPLAINED THAT THE YOUNG WHITE HOUSE STAFF ASKS THEM TO JOIN MEETINGS AT THE LAST MINUTE THEY EVEN JOKED ABOUT THE RILEY RULE AFTER THE EDUCATION SECRETARY WHEN THE WHITE HOUSE CALLS TO DEMAND SOMETHING ASK HOW OLD IS THE PERSON WHO CALLED COMMERCE CHIEF BROWN AND LABOR SECRETARY REICH DISPLAY CLOUT THOUGH REICH SOMETIMES TALKS OUT OF TURN ON ECONOMIC INDICATORS RED INK RECEDES MORE THAN EXPECTED AS THE BUDGET BATTLE PERSISTS IN CONGRESS THE DEFICIT OUTLOOK BRIGHTENS EVEN BEYOND THE CLINTON FORECAST STRONGER ECONOMIC ACTIVITY PLUS HIGHER TAX RATES ON THE WEALTHY PROMPT A 93 JUMP IN APRIL TAX RECEIPTS OVER 1993 THE HIGHER RECEIPTS COULD HELP PUSH THIS FISCAL YEAR'S REDINK TOTAL BELOW 200 BILLION FROM 1993'S 255 BILLION THAT WOULD BE LESS THAN 3 OF GDP COMPARED WITH 4 OF GDP LAST YEAR EFFORTS STILL GROW TO REDUCE SPENDING IN CLINTON'S BUDGET FOR NEXT FISCAL YEAR WITH HELP FROM PEROT FORCES DEMOCRATIC SEN EXON AND GOP SEN GRASSLEY FEND OFF PRESSURE FROM THE WHITE HOUSE TO KILL AN EXTRA 26 BILLION IN CUTS OVER FIVE YEARS EVEN SOME LIBERALS LIKE PENNSYLVANIA SEN WOFFORD WHO FACES A REELECTION FIGHT GROW NERVOUS ABOUT TOTALLY KILLING THE CUTS A HOUSESENATE CONFERENCE WILL TRY TO SPLIT THE DIFFERENCE SCROUNGING FOR DOLLARS CAMPAIGN MONEY IS TIGHT AS CANDIDATES ABOUND MORE THAN 1600 PEOPLE ALREADY HAVE FILED FOR HOUSE RACES HOUSE DEMOCRATS CONSIDER 150 CONTESTS SO CLOSE THEY COULD GO EITHER WAY PAC DONATIONS ARE STRETCHED THIN I DON'T THINK ANYBODY ANTICIPATED THIS MANY COMPETITIVE RACES SAYS STEVE STOCKMEYER OF THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES EVEN SOME GOOD FUNDRAISERS AREN'T PULLING IN MUCH PAC MONEY GOP REP BLUTE OF MASSACHUSETTS SEES ONLY 3700 IN PAC DOLLARS IN THE FIRST THREE MONTHS OF THE YEAR A FRACTION OF HIS 52750 IN DONATIONS FIVE SENATE CANDIDATES IN OHIO TOGETHER GET 168975 IN PAC MONEY ONLY 8 OF THE TOTAL THEY HAVE RAISED SOME SUSPECT PAC MANAGERS OF HOLDING BACK TO SHOW LAWMAKERS WHAT WILL HAPPEN IF THEY PASS LEGISLATION CURBING PAC DONATIONS RILED BY ROSTY THE WHITE HOUSE WAS IRKED BY ROSTENKOWSKI'S SPEECH LAST WEEK SAYING A BROADBASED TAX MAY BE NEEDED TO FINANCE HEALTHCARE REFORM THE HOUSE WAYS AND MEANS CHAIRMAN GAVE NO ADVANCE WARNING AIDES COMPLAIN PEEVED BY PANETTA HOUSE COMMERCE CHAIRMAN DINGELL IN A LETTER ACCUSES BUDGET CHIEF PANETTA OF VIOLATING HIS PANEL'S TURF WITH PROPOSALS LIKE FUNDING THE FCC WITH FEES HE ASKS TO BE TOLD OF SUCH IDEAS SO HE WON'T HAVE TO RELY UPON THE PRESS LOBBYISTS OR OTHER COMMITTEES TO LEARN OF THE ADMINISTRATION'S INTENTIONS GETTING AN EARFUL FEDERAL HIGHWAY CHIEF RODNEY SLATER TELLS A HOUSE PANEL THAT HE BACKS KILLING A GASTAX EXEMPTION FOR ETHANOL A CORNBASED FUEL THAT COULD COST THE HIGHWAY TRUST FUND ANOTHER 475 MILLION A YEAR HE QUICKLY RECANTS AFTER 15 FRIENDS OF ETHANOLMAKER ARCHERDANIELSMIDLAND CO COMPLAIN TO THE WHITE HOUSE QUAYLE WATCH THE FORMER VICE PRESIDENT LAYING THE GROUNDWORK FOR HIS PUBLIC REEMERGENCE VISITS WASHINGTON FOR LUNCH WITH POLITICAL OPERATIVES FRIENDS SAY SOME OF THE SHARPEST BARBS ABOUT POLITICAL FIGURES IN HIS COMING BOOK WERE ADDED AFTER QUAYLE AND HIS WIFE MARILYN GOT THE MANUSCRIPT BACK FROM THE PUBLISHER WHITEWATER HEARINGS RUN INTO DELAY AS LAWMAKERS SQUABBLE OVER DETAILS SENATE LEADERS ARE NEARLY A MONTH BEHIND IN NEGOTIATING THE TIME AND FORMAT OF HEARINGS THEY AGREED TO BEFORE EASTER A LIKELY COMPROMISE TO DOLE'S CALL FOR A SPECIAL PANEL IS TO HAVE THE BANKING COMMITTEE CONDUCT THE INQUIRY WITH EXPANDED JURISDICTION BUT THE PANEL'S MAJORITY STAFF HASN'T STARTED PREPARING HOUSE DISCUSSIONS ON HEARINGS HAVEN'T EVEN BEGUN YET NOBODY HAS BEEN CHOMPING AT THE BIT TO GET GOING SAYS A GOP AIDE ESPECIALLY SINCE LEAD GOP CRITIC REP LEACH COUNSELS WAITING UNTIL SPECIAL COUNSEL FISKE HAS MOVED FURTHER WHITE HOUSE AIDES SAY WHITEWATER ISN'T OFF THE RADAR SCREEN BUT HAS SUBSIDED ENOUGH TO LET THEM FOCUS ON THEIR LEGISLATIVE AGENDA THE SENATE BANKING COMMITTEE'S GOP MEMBERS WANT TO SUBPOENA HILLARY RODHAM CLINTON'S COMMODITIES TRADING RECORDS MINOR MEMOS NIXON MADE SOME DECISIONS AT MOSCOW SUMMITS IN THE BACK SEAT OF HIS LIMOUSINE BECAUSE YOU CAN'T EVEN WALK BY A PLANT WITHOUT THINKING IT IS BUGGED HE TOLD DAVID FROST IN UNUSED FOOTAGE FROM A 1977 TV INTERVIEW ECONOMIST EDWARD YARDENI ACCUSES THE FED OF THE TONYA HARDING APPROACH TO MONETARY POLICY CLUBBING THE ECONOMY IN THE KNEES JUST BECAUSE IT IS PERFORMING WELL SEE RELATED LETTER LETTERS TO THE EDITOR A MATTER OF BILLIONS WSJ JUNE 2 1994 9404290087 YY94 MM06 9405310123 940428 CLINTON POWWOW SERIOUS RESERVATIONS BY DAVID FRUM INDIAN AFFAIRS ARE ALMOST PERFECTLY FORMULATED FOR ELICITING HELPLESS GOODWILL FROM THE MAJORITY POPULATION THE CONDITION OF THE TWO MILLION AMERICAN INDIANS IS SO PITEOUS THE HISTORIC WRONGS ARE SO UNDENIABLE AND THE LEGAL RIGHTS OF INDIANS SO GNARLED AND COMPLICATED THAT IT IS SIMPLER REALLY JUST TO GIVE THE INDIANS WHATEVER THEY ASK THAT'S WHAT PRESIDENT CLINTON IS PROBABLY GOING TO DO RISKING OMINOUS CONSEQUENCES FOR AMERICA'S NATIONAL INTEGRITY TOMORROW THE PRESIDENT WILL MEET FOR TWO HOURS ON THE SOUTH LAWN OF THE WHITE HOUSE WITH 545 INDIAN LEADERS ONE FROM EACH RECOGNIZED AMERICAN INDIAN AND ALASKAN NATIVE TRIBE NO AMERICAN PRESIDENT HAS EVER DONE SUCH A THING BEFORE AND THE EVENT HAS GENERATED ENORMOUS EXPECTATION AMONG THE TRIBES MR CLINTON HAS ALREADY RESTORED 125 MILLION TO THE BUDGET OF THE INDIAN HEALTH SERVICE THE INDIAN LEADERS ARE AFTER MORE THAN MONEY HOWEVER THEY ARE DEMANDING GREATER RIGHTS OF SELFGOVERNMENT MR CLINTON PLEDGED DURING THE 1992 CAMPAIGN TO CONFER SUCH RIGHTS AND THIS ONE TIME AT LEAST HE SEEMS LIKELY TO KEEP HIS WORD TECHNICALLY OF COURSE INDIAN TRIBES HAVE BEEN CONSIDERED SOVEREIGN SINCE COLONIAL TIMES WHILE AMERICAN INDIANS HOLD US CITIZENSHIP AND PAY MOST FEDERAL TAXES SO LONG AS THEY LIVE ON RESERVATIONS THEY ARE IN IMPORTANT WAYS NOT SUBJECT TO US AUTHORITY OR CONSTITUTIONAL PROTECTION ASKED WHAT AN INDIAN TRIBAL GOVERNMENT COULD THEORETICALLY DO TO A RESERVATION RESIDENT WHO PUBLISHED A NEWSPAPER ARTICLE IT DIDN'T LIKE ROB GOLTON OF THE UNIVERSITY OF COLORADO LAW SCHOOL REPLIES ONLY SEMIFACETIOUSLY IT COULD LOCK HIM UP AND EXECUTE HIM THERE IS NO ENFORCEABLE REQUIREMENT THAT INDIAN GOVERNMENTS OBSERVE DEMOCRATIC NORMS THERE ISN'T ANY ENFORCEABLE REQUIREMENT THAT THEY BE DEMOCRATIC IN THE FIRST PLACE CONGRESS DID PASS AN INDIAN CIVIL RIGHTS ACT IN 1968 APPLYING MOST OF THE BILL OF RIGHTS TO RESERVATIONS BUT THE SUPREME COURT RULED IN 1978 THAT THE FEDERAL COURTS HAD NO JURISDICTION AN INDIAN WHO BELIEVES THAT HIS TRIBAL GOVERNMENT HAS VIOLATED HIS RIGHTS MUST SEEK REDRESS IN THE TRIBE'S OWN COURTS STILL IF INDIAN GOVERNMENTS DO NOT HAVE TO RESPECT THE CONSTITUTION THEY MUST OBEY CONGRESS CONGRESS HAS TOTAL PLENARY POWER OVER INDIAN TRIBES AND RESERVATIONS INCLUDING THE POWER TO ABOLISH TRIBES OR EVEN TO REPEAL THE WHOLE STRUCTURE OF INDIAN LAW FOR 20 YEARS THOUGH CONGRESS HAS BEEN EXPANDING THE INDIAN GOVERNMENTS' SCOPE FOR INDEPENDENT ACTION IT IS AN EVOLUTION WHOSE NATURAL CONCLUSION WOULD BE THE DE FACTO SECESSION OF LARGE TRACTS OF US TERRITORY FROM THE REPUBLIC IT IS EASY TO SEE WHY MANY INDIANS MIGHT THINK THEY WOULD PROFIT FROM INDEPENDENCE INDIANS WHO LIVE ON RESERVATIONS ARE TREATED AS WARDS OF THE STATE THE OPPRESSIVE OLD BUREAU OF INDIAN AFFAIRS SEEMS TO EXIST ONLY TO CRUSH INDIAN ENTERPRISE ON THOSE RARE RESERVATIONS WHERE THE BUREAU PERMITS PRIVATE LAND OWNERSHIP AT ALL INDIAN OWNERS MUST SEEK THE BUREAU'S PERMISSION BEFORE TAKING OUT A MORTGAGE ON THEIR PROPERTY OR LEASING IT PERMISSION THAT OFTEN TAKES TWO OR THREE YEARS TO OBTAIN THE BUREAU FLATLY FORBIDS INDIANS TO SELL THEIR LAND THE BUREAU'S COLLECTIVISM HAS TAKEN ITS TOLL THE BUREAU REPORTS 35 UNEMPLOYMENT AMONG THE INDIANS LIVING ON RESERVATIONS ABOUT HALF THE TOTAL US INDIAN POPULATION OF INDIANS WHO WORK ONLY 28 MAKE MORE THAN 7000 A YEAR RESERVATION INDIANS FACE AN AVERAGE LIFE SPAN FOUR YEARS LESS THAN THAT OF WHITES AND THEIR INFANT MORTALITY RATE IS 30 HIGHER UNFORTUNATELY THE BUREAU'S FAILURE IS NOT PROMPTING INDIAN LEADERS TO CALL FOR PRIVATE PROPERTY RIGHTS OR GREATER FREEDOM FOR INDIAN INDIVIDUALS INSTEAD THEY WANT TO SEE THE BUREAU'S POWERS TRANSFERRED TO INDIAN GOVERNMENTS WHOSE TENDENCIES ARE IN SOME WAYS EVEN MORE COLLECTIVIST THAN THE BUREAU'S EVER WERE ON THE LARGEST AND MOST AUTONOMOUS RESERVATIONS THOSE OF THE NAVAJO IN THE SOUTHWEST 98 OF ALL LAND IS COLLECTIVELY OWNED THE WORST DANGER IN ACCEPTING INDIAN SOVEREIGNTY AS THE SOLUTION TO INDIAN ECONOMIC AND SOCIAL PROBLEMS IS NOT HOWEVER THAT INDIAN RESERVATIONS WILL CONTINUE TO FESTER IN POVERTY TO SEE WHAT IS MOST FUNDAMENTALLY AT STAKE LOOK AT THE CHAOS AND CRIMINALITY THAT HAVE GRIPPED CANADA'S NEWLY SELFGOVERNING RESERVES UNTIL THE EARLY 1980S CANADA GOVERNED ITS INDIANS FAR MORE HARSHLY THAN THE US THEY WERE NOT EVEN CONSIDERED CITIZENS UNTIL 1965 THEN IN 1982 CANADA DASHED TO THE OTHER EXTREME AMENDING ITS CONSTITUTION TO RECOGNIZE AN INHERENT INDIAN RIGHT OF SELFGOVERNMENT SINCE THEN THE RESERVES HAVE WITNESSED EVER MORE BLATANT ACTS OF DEFIANCE OF THE AUTHORITY AND LEGITIMACY OF THE NATIONAL GOVERNMENT PERHAPS THE SINGLE MOST STARTLING INCIDENT OCCURRED JAN 21 A CANADIAN ARMED FORCES AIRCRAFT PICKED UP A SIGNAL ON THE SECRET DISTRESS FREQUENCY AS IF FROM A PLANE CRASH A HELICOPTER WAS SENT TO THE SITE THE KANESATAKE MOHAWK RESERVE NEAR MONTREAL WHEN THE HELICOPTER LANDED IT WAS MET BY A DELEGATION OF MOHAWKS WHO ANNOUNCED THAT IT HAD LANDED ON TRIBAL LAND THAT IT HAD BEEN FIRED ON AND THAT IT HAD BETTER LEAVE IMMEDIATELY THE SOLDIERS COMPLIED TO THIS DAY NO CHARGES HAVE BEEN LAID AGAINST ANYONE FOR SHOOTING AT THE HELICOPTER KANESATAKE HAS WITNESSED CONFRONTATIONS BETWEEN THE MILITARY AND THE MOHAWKS BEFORE ONE OF THE MAJOR ACCESS ROUTES TO MONTREAL RUNS THROUGH THE RESERVE AND IN 1990 A GROUP OF MOHAWK MILITANTS SEIZED IT QUEBEC PROVINCIAL POLICE MOVED TO FREE THE ROAD AND ONE WAS KILLED THE MILITARY WAS CALLED IN AND BESIEGED THE PLACE FOR A MONTH DISCOVERING IN THE COURSE OF DOING SO THAT THE RESERVE WAS CRAMMED WITH SOPHISTICATED WEAPONS AND EXPLOSIVES THE MOHAWKS EVENTUALLY GAVE WAY NOBODY WAS EVER CHARGED IN THE KILLING OF THE POLICE OFFICER THE MOHAWKS COULD AFFORD THEIR WEAPONS BECAUSE THEIR RESERVES WERE THE CENTERS OF CANADA'S TRADE IN SMUGGLED CIGARETTES UNTIL FEBRUARY HIGH TAXES PUSHED THE PRICE OF A PACK OF CIGARETTES TO NEARLY 7 CANADIAN TAXES CREATED AN OPPORTUNITY AND SOVEREIGNTY ENABLED THE INDIANS TO SEIZE IT WITH THE FEDERAL GOVERNMENT OBSERVING A NO GO POLICY ON THE RESERVES THE MOHAWKS OF THE AKWASASNE RESERVE WHICH STRADDLES THE BORDERS OF THE US AND CANADA WERE ABLE TO TAKE A DOMINANT POSITION IN THE CIGARETTE TRAFFIC AND EVEN NOW THAT THE PRICE OF A PACK OF CIGARETTES HAS DROPPED TO SOME 3 CANADIAN THE CRIMINAL GANGS SPAWNED BY THE SMUGGLING AND PROTECTED BY THE NOGO POLICY STILL INTIMIDATE NONINDIANS WHO LIVE ACROSS THE HIGHWAY FROM THE MONTREAL RESERVE WHO COMPLAIN THAT AUTOMATIC RIFLE BULLETS WHISTLE PAST THEIR WINDOWS AT NIGHT AS WELL AS THE FEDERAL AND PROVINCIAL POLICE THE TORONTO GLOBE & MAIL HAS COUNTED 75 SUSPICIOUS DEATHS OVER THE PAST SEVEN YEARS THAT HAVE GONE UNPUNISHED BECAUSE OF THE RELUCTANCE OF THE AUTHORITIES TO TRESPASS ON THE RESERVES RONALD IRWIN CANADA'S MINISTER FOR INDIAN AFFAIRS HAS REPEATEDLY DENIED THAT ANY EXPLICIT ORDERS FORBID POLICE FROM ENTERING INDIAN TERRITORY BUT THE MINISTER HIMSELF HAS COMPLAINED THAT CRITICS DO NOT REALIZE HOW EXPLOSIVE THE SITUATION IS OVIDE MERCREDI CANADA'S MOST PROMINENT NATIVE LEADER AND ONE GENERALLY CONSIDERED A MODERATE WARNED DURING THE SMUGGLING CRISIS THAT THE RESTORATION OF FEDERAL AUTHORITY ON THE RESERVES WOULD BE RESISTED CANADA OF COURSE IS NOT THE US CANADA'S MOHAWKS ARE FAR MORE MILITANT THAN ANY US INDIAN TRIBE HAS YET BECOME THE CANADIAN MILITARY IS OBVIOUSLY FAR LESS AWESOME THAN THE AMERICAN AND CANADIAN POLITICIANS ARE MORE EASILY PUSHED AROUND BY AGGRESSIVE PRESSURE GROUPS BUT A PARALLEL DOES EXIST SELFGOVERNMENT IF OFFERED BY MR CLINTON WILL BE GRABBED BY AT LEAST SOME TRIBES CONFLICTS BETWEEN SUPPOSEDLY AUTONOMOUS INDIAN STATELETS AND WASHINGTON WILL INEVITABLY ARISE AND FUTURE ADMINISTRATIONS WILL BE FORCED TO CHOOSE BETWEEN ACQUIESCING TO FURTHER FRAGMENTATION OF THE AMERICAN NATION AND TAKING A HARSH STAND AGAINST THE COUNTRY'S SADDEST VICTIM GROUP THE DILEMMA IS AVOIDABLE ALL MR CLINTON NEED DO IS TELL THE CONFEREES ON THE WHITE HOUSE LAWN THAT IT IS THE LIBERTY OF INDIAN INDIVIDUALS AND NOT THE POWERS OF INDIAN GOVERNMENTS THAT HE IS DETERMINED TO UPHOLD AND EXPAND MR FRUM'S DEAD RIGHT AN ANALYSIS OF CONSERVATIVE POLITICS IS TO BE PUBLISHED IN AUGUST BY NEW REPUBLIC BOOKS SEE RELATED LETTER LETTERS TO THE EDITOR INDIANS STILL FIGHTING JUST FOR BASIC PARITY WSJ MAY 31 1994 9404280075 YY94 MM05 9405310004 940419 ASTONISHING VIEWS AND MANY OPINIONS MUST BE THE PRESIDIO PLAN FOR SAN FRANCISCO PARK BRINGS NUDISTS GOLFERS AND SKUNKS INTO THE OPEN BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO EARLY ON IN THE STRUGGLE TO CONVERT THE OLD PRESIDIO ARMY BASE HERE INTO A NATIONAL PARK A LOCAL CARNIVAL FAMILY KNOWN AS THE PICKLES SUGGESTED TURNING PART OF THE SITE INTO A THREERING CIRCUS THE PICKLES LATER SOURED ON THE IDEA SOME SUGGEST THEIR GOAL HAS BEEN ACHIEVED NONETHELESS FOR NEARLY THREE YEARS THE US ARMY THE NATIONAL PARK SERVICE AND HUNDREDS OF BAY AREA ACTIVISTS HAVE BEEN JUMPING THROUGH HOOPS AND OTHERS BREATHING FIRE OVER THE FATE OF THE PRESIDIO THE 18THCENTURY FORTRESS SITS ON 1500 FORESTED ACRES OVERLOOKING THE GOLDEN GATE BRIDGE IT MAY BE THE CHOICEST UNDEVELOPED URBAN REAL ESTATE UP FOR GRABS IN THE COUNTRY THE ARMY ORIGINALLY PLANNED TO TURN IT OVER TO THE PARK SERVICE WHICH ENVISIONED A KIND OF MULTICULTURAL ECOPARK FOR LOCALS TOURISTS AND SCIENTISTS PRIVATE INTERESTS WOULD PICK UP MOST OF THE ESTIMATED 600 MILLION IN BUILDINGREPAIR AND CLEANUP COSTS THE PLAN WAS HAILED AS A MODEL FOR PROGRESSIVE MILITARYBASE CONVERSION NOW JUST A FEW MONTHS BEFORE THE ARMY IS SUPPOSED TO RETREAT FROM THE PRESIDIO THE PLAN IS PINNED DOWN IN A STRANGE CROSSFIRE THE MILITARY ITSELF IS HAVING SECOND THOUGHTS ABOUT GIVING UP CERTAIN STRATEGIC ASSETS NAMELY A GOLF COURSE HORDES OF SPECIAL INTERESTS ARE PILLORYING THE PLAN AND EACH OTHER TURNING THE PROCESS INTO SOMETHING OF A NEW AGE YUGOSLAVIA THE MUWEKMA OHLONE INDIANS OF WHOM THERE REMAIN ROUGHLY 158 HAVE THREATENED TO PRESS ANCESTRAL CLAIMS TO THE BASE INVESTIGATORS OF EXTRATERRESTRIALS WANT SPACE FOR RESEARCH INTO EARTH'S EMERGING INTERACTIVE RELATIONSHIP WITH THE REST OF THE UNIVERSE NUDISTS HAVE DEMANDED MORE ACCESS TO BEACHES A BRAVE STANCE SINCE THOSE BEACHES ARE SWEPT YEARROUND BY BONENUMBING CURRENTS AND TEETHRATTLING FOGS THE PARK SERVICE EXPECTED ITS PRESIDIO PLAN WOULD GENERATE RESPONSES AND IT DID 2353 IN ALL MOSTLY FROM MAINSTREAM ENVIRONMENTAL AND RESEARCH GROUPS STILL PLANNERS WEREN'T PREPARED FOR THE FLAK THEY HAVE TAKEN FROM CERTAIN ADVERSARIES THE BUNGEEJUMP ADVOCATES FOR EXAMPLE ARE PRESSING TO HAVE THE PARK SERVICE APPROVE COMMERCIAL JUMPING OFF THE GOLDEN GATE BRIDGE MAN IT WOULD BE THE PREMIER BUNGEE JUMP IN THE WORLD SAYS PETER KOCKELMAN OWNER OF BUNGEE ADVENTURES HE ALSO THINKS THE PRESIDIO WOULD PROVIDE SPLENDID VIEWS FOR CUSTOMERS TRYING HIS NEW INVENTION THE EJECTOR SEAT A GIANT SLINGSHOT THAT HURLS THE EJECTEE TETHERED TO A BUNGEE CHORD SOME 140 FEET INTO THE AIR MEANWHILE BAY AREA ANIMALRIGHTS GROUPS ARE GOING WILD BECAUSE THE PARK SERVICE WANTS TO LEASE THE PRESIDIO'S RESEARCH HOSPITAL AND LABORATORIES TO UNIVERSITY RESEARCHERS WHO SEEM LIKELY TO CONTINUE THE MILITARY'S LONG TRADITION OF ANIMAL EXPERIMENTS THE PARK SERVICE VIEWS THESE LEASES AS CASH COWS BUT IT'S UNIMAGINABLE THAT TORTURING ANIMALS COULD TAKE PLACE IN A NATIONAL PARK SAYS DR ELLIOT KATZ OF IN DEFENSE OF ANIMALS THEN THERE ARE THE WINDSURFERS THEY ARE STIRRED UP BECAUSE THE PARK SERVICE AMONG OTHER THINGS WANTS WINDSURFERS' CARS CONFINED TO PRESIDIO PARKING SPACES DELINEATED WITH THE USUAL WHITE MARKINGS BOUNDARIES ARE JUST NOT PART OF THE WINDSURFING EXPERIENCE EXPLAINS KELLY WEE A WINDSURFING ACTIVIST THE WINDSURFERS SAY THEY WILL SUE IF CROWDED AND IT ISN'T MERE BLUSTER A LOT OF WINDSURFERS ARE LAWYERS SAYS WILLIAM ROBBERSON HEAD OF THE 2000STRONG SF BOARDSAILING ASSOCIATION ATOP ALL THIS POLITICAL ACTIVISTS ARE PLANNING TO PARADE INTO THE PRESIDIO TO PROTEST THE PARK SERVICE'S REJECTION OF A PLAN TO TURN OLD BARRACKS INTO A HOME FOR THE HOMELESS THE PLAN IS CALLED OIDISERP ODYSSEY OIDISERP BEING PRESIDIO SPELLED BACKWARD WITH ALL THIS CONFLICT THE PRESIDIO COULD USE A PEACEMAKER AND IN FACT IT HAS ONE ON PREMISES THE MIKHAIL GORBACHEV FOUNDATION WHICH MOVED INTO AN OLD COAST GUARD BEACH HOUSE LAST YEAR PLEDGING THE GLOBAL PURSUIT OF DIALOGUE AND PEACE INDEED MEDIATING THE PRESIDIO FRAY MIGHT PROVE A USEFUL PRIMER FOR RESOLVING BIGLEAGUE CONFLICTS OBSERVES SPOKESMAN JOHN BALBACH IT IS QUESTIONABLE HOWEVER WHETHER EVEN FOUNDATION DIPLOMACY CAN RESOLVE THE ARMY'S ABOUTFACE GOLF IS INVOLVED THE PRESIDIO FEATURES A DAZZLING CHAMPIONSHIP COURSE THAT HAS FOR A CENTURY BEEN THE PRESERVE OF ARMY GOLFERS AND AN EXCLUSIVE GROUP OF PRIVATE CLUB MEMBERS THE MOST FAMOUS OF WHOM IS BASEBALL LEGEND JOE DIMAGGIO THE PARK SERVICE PLANS TO OPEN THE COURSE TO EVERYBODY INDEED GREEN FEES FROM THE MASSES WOULD PROVIDE A CRUCIAL SOURCE OF OPERATING FUNDS FOR THE PARK THE MILITARY WENT ALONG UNTIL IT DECIDED TO KEEP ABOUT 460 OF THE SIXTH US ARMY'S HEADQUARTERS STAFF ON THE BASE NOW GLYNN C MALLORY A THREESTAR GENERAL AND 23HANDICAPPER SAYS THE COURSE IS VITAL TO PERFORMING OUR MISSION AND MAINTAINING THE TROOPS' QUALITY OF LIFE THE PRIVATE PRESIDIO GOLFERS HAVE COME OUT SWINGING TOO DAVID HANSELL PRESIDENT OF THE 305MEMBER PRESIDIO GOLF CLUB SAYS HIS GROUP HAS PUT TOGETHER A LITIGATION WAR CHEST AND HAS HIRED A FORMER PARK SERVICE OFFICIAL AS A LOBBYIST OUR MAN WILL TAKE THIS TO THE HIGHEST LEVELS MR HANSELL SAYS INCLUDING HE HINTS THE NATION'S DUFFERINCHIEF BILL CLINTON THE PARK SERVICE MR HANSELL CHARGES JUST DOESN'T UNDERSTAND THE GOLFER MENTALITY BRIAN O'NEILL A TOP PARK SERVICE PLANNER IS UNMOVED THE GOLF COURSE IS AN INTEGRAL PART OF THE FABRIC OF PRESIDIO HISTORY AND IT BELONGS IN THE PARK WITH ACCESS TO ALL HE SAYS THE GOLF FACTIONS HAVE BEEN MEETING AT THE PENTAGON IN RECENT DAYS TO TRY TO RESOLVE DIFFERENCES MEANWHILE THERE IS A NEW WHIFF OF TROUBLE IN THE PRESIDIO SKUNKS IT SEEMS HAVE LONG INHABITED THE BASE'S GROVES OF EUCALYPTUS AND PINE THE ARMY HAS KEPT THEM IN CHECK WITH SOMETIMESLETHAL RAIDS BUT RECENTLY THE GOVERNMENT HAS TAKEN TO LEVELING SKUNK HABITAT THE PANICKED SKUNKS HAVE FLED THE PRESIDIO FOR POSH BORDER NEIGHBORHOODS WHERE US SEN DIANNE FEINSTEIN MR DIMAGGIO AND OTHER PROMINENT SAN FRANCISCANS LIVE ONE SUCH IS WILLIAM KOBLENTZ A HIGHPOWERED LOCAL ATTORNEY HE AND HIS TERRIER FREDDY WERE OUT FOR A STROLL RECENTLY WHEN THEY WERE SET UPON BY A PRESIDIO SKUNK IT WAS A MONTH BEFORE FREDDY STOPPED STINKING MR KOBLENTZ SAYS ANOTHER SKUNK WAS RECENTLY SPOTTED WITH A YOGURT CUP STUCK ON ITS HEAD IN FRONT OF A TRENDY PRESIDIOAREA NIGHTSPOT A LOT OF PRESIDIO NEIGHBORS THINK THE CITY SHOULD JUST WIPE OUT THE SKUNKS IMPOSSIBLE SAYS MICHAEL KNAPP THE CITY'S TOP ANIMALCONTROL MAN EVEN IF WE HUMANELY EUTHANIZED SKUNKS THE ANIMALRIGHTS PEOPLE WOULD BE ALL OVER US HE SAYS BESIDES WE'RE BASICALLY PROSKUNK THEY WERE HERE FIRST MANY SAN FRANCISCANS THINK THE REAL SKUNKS ARE BACK IN CONGRESS JOHN J DUNCAN A TENNESSEE REPUBLICAN HAS LABELED THE PRESIDIO PLAN AN ABSURD BOONDOGGLE AND IS GETTING SOME SUPPORT FOR LEGISLATION HE SAYS WOULD RAISE TENS OF MILLIONS OF DOLLARS FOR THE GOVERNMENT BY SELLING PRIME PRESIDIO ASSETS TO PRIVATE DEVELOPERS VOTES ON HIS PROPOSAL AND ON A PROPARKPLAN BILL SPONSORED BY HOMETOWN REP NANCY PELOSI ARE LIKELY TO DETERMINE THE PRESIDIO'S FATE BOTH ARE EXPECTED THIS SUMMER SOME THINK REP DUNCAN IS ENGAGING IN SKUNKLIKE TACTICS HE'S MAKING US OUT TO BE A BUNCH OF FAROUT BIZARROS SAYS TRACY FORTMANN A PARK SERVICE EMPLOYEE AND BAY AREA RESIDENT IT'S A CHEAP SHOT SEE RELATED LETTER LETTERS TO THE EDITOR THE PRESIDIO ARMY POST IS A NATIONAL TREASURE WSJ MAY 31 1994 9404190078 YY94 MM05 9405270033 940413 RULE OF LAW HOW COME NO ONE'S TALKING ABOUT THIS HEALTH REFORM BY DAN QUAYLE A YEAR AGO ON THESE PAGES I OUTLINED AN AGENDA FOR MEDICAL MALPRACTICE REFORM AFTER THE CLINTON ADMINISTRATION HAD MADE NOISES ABOUT BEING SERIOUS ON THIS ISSUE ONE ADMINISTRATION OFFICIAL HAD EVEN DESCRIBED THE CURRENT SYSTEM AS A LOTTERY SINCE THEN HOWEVER THE PRESIDENT AND HIS ADVISERS HAVE PLAYED DOWN MEDICAL MALPRACTICE REFORM ARGUING THAT LITIGATION DOESN'T ADD MUCH TO HEALTH CARE COSTS AND THEREFORE SHOULDN'T BE ON THE AGENDA THEY ARE MISTAKEN THE COMPETITIVENESS CENTER OF THE HUDSON INSTITUTE WHICH I HEAD HAS JUST CONCLUDED AN INDEPTH STUDY OF MEDICAL MALPRACTICE COSTS AT A MAJOR INDIANA HOSPITAL BASED ON THIS STUDY WE ESTIMATE NATIONWIDE COSTS DUE TO MEDICAL MALPRACTICE LIABILITY OF AT LEAST 15 BILLION A YEAR THIS IS A VERY CONSERVATIVE ESTIMATE FOR THE COMPETITIVENESS CENTER STUDY TWO OF MY COLLEAGUES DAVID M MCINTOSH AND DAVID C MURRAY WERE GIVEN UNPRECEDENTED ACCESS TO THE HOSPITAL'S FINANCIAL AND MEDICAL RECORDS OUR STUDY MEDICAL MALPRACTICE LIABILITY AN AGENDA FOR REFORM FOUND THAT MEDICAL LIABILITY ADDED 450 IN DIRECT AND INDIRECT COSTS FOR EVERY ADMISSION THIS AMOUNTED TO MORE THAN 5 OF THE HOSPITAL'S OPERATING EXPENDITURES OVER THE PAST TWO DECADES THE COST OF MEDICAL MALPRACTICE LITIGATION HAS SKYROCKETED AT AN AVERAGE ANNUAL RATE OF 15 FAR OUTSTRIPPING THE RATE OF ECONOMIC GROWTH AND INFLATION EVEN HEALTH CARE SPENDING GREW AT AN AVERAGE RATE OF ONLY 11 OVER THAT PERIOD OUR STUDY ESTIMATES THAT FOR EACH PERSON ADMITTED THE SUBJECT HOSPITAL SPENT 123 DIRECTLY ON MEDICAL MALPRACTICE INSURANCE LEGAL OVERHEAD AND CLAIMS LITIGATION IS ONLY THE TIP OF THE ICEBERG HOWEVER WHEN IT COMES TO THE TOTAL COST OF MEDICAL MALPRACTICE THE THREAT OF LIABILITY FORCES PHYSICIANS TO ORDER UNNECESSARY TESTS AND REFERRALS TO BUILD DEFENSES AGAINST EVERY POSSIBLE LAWSUIT THESE TESTS DON'T ADD ANY MEDICAL VALUE TO THE COURSE OF TREATMENT AND THEY DON'T COME CHEAP OUR STUDY ESTIMATES THAT AN AVERAGE OF 327 OF SUCH TESTS WERE DONE FOR EACH PERSON ADMITTED TO THE HOSPITAL THE COMPETITIVENESS CENTER STUDY SURVEYED PHYSICIANS AT THE HOSPITAL ASKING THEM TO RATE THE INFLUENCE OF A NUMBER OF FACTORS INCLUDING THE THREAT OF MALPRACTICE LIABILITY ON THEIR ORDERING OF TESTS AND PROCEDURES MALPRACTICE FEARS WERE CITED AS A MAJOR INFLUENCE BY 293 OF THE RESPONDENTS 345 SAID MALPRACTICE LIABILITY HAD SOME INFLUENCE ON THE NUMBER OF TESTS THEY ORDERED 289 REPORTED IT AS A MINOR INFLUENCE AND ONLY 73 SAID IT HAD NO INFLUENCE THE STUDY THEN MATCHED RESPONSES FROM THE SURVEY WITH HOSPITAL RECORDS CONTAINING THE COST OF THE TESTS EACH PHYSICIAN HAD ACTUALLY ORDERED THE PHYSICIANS WHO INDICATED THAT LIABILITY HAD A MAJOR INFLUENCE ON THEIR BEHAVIOR ORDERED ON AVERAGE 532 MORE TESTS PER PATIENT THAN THE PHYSICIANS WHO SAID THAT LIABILITY DID NOT INFLUENCE THEM AT ALL THE 634 WHO SAID THAT LIABILITY HAD ONLY SOME OR A MINOR INFLUENCE ON THEIR BEHAVIOR STILL ORDERED 330 AND 346 MORE TESTS PER PATIENT RESPECTIVELY THAN THEIR COUNTERPARTS WHO SAID LIABILITY HAD NO INFLUENCE IT BEARS NOTING THAT THESE ARE FIGURES FOR A HOSPITAL IN INDIANA A STATE THAT HAS IMPLEMENTED SOME OF THE MOST PROGRESSIVE TORT REFORMS IN THE NATION INDIANA WAS A PIONEER IN MEDICAL MALPRACTICE REFORM LEGISLATION PASSED IN 1974 CAPPED TOTAL DAMAGE AWARDS AT 500000 SINCE RAISED TO 750000 SHARPLY LIMITED CONTINGENCY FEES AND PREVENTED PLAINTIFFS FROM BEING COMPENSATED BY BOTH THEIR OWN INSURANCE AND THE DEFENDANT'S SOCALLED DOUBLE RECOVERY FROM COLLATERAL SOURCES BASED ON OUR FINDINGS WE ARE ADVOCATING A SET OF REFORMS THAT PROMISE FAR GREATER SAVINGS IN THIS AREA THAN WOULD BE OBTAINED BY ANY OF THE WEAK REFORMS ON THE TABLE IN WASHINGTON DAMAGE AWARDS SHOULD BE CAPPED USING A SLIDING SCALE BASED ON THE TYPE OF INJURY SUFFERED BY THE PATIENT THIS IS BETTER THAN PLACING A SINGLE CAP ON DAMAGES AS INDIANA AND OTHER STATES HAVE DONE BECAUSE THE SINGLE CAP ONLY PREVENTS OVERCOMPENSATION FOR THE RELATIVELY FEW CASES AT THE UPPER END OF DAMAGE AWARDS INDIANA'S CAP OF 750000 FOR EXAMPLE WOULD NOT PREVENT A DISPROPORTIONATELY HIGH AWARD SAY 500000 TO SOMEONE WHO SUFFERED ONLY MINOR HARM ALTHOUGH CAPPING TOTAL DAMAGES WOULD GENERATE THE GREATEST COST SAVINGS PLACING A SLIDING CAP ON NONECONOMIC DAMAGES PAIN AND SUFFERING WOULD ALSO REDUCE COSTS AND WOULD BE LESS CONTROVERSIAL THE RULES OF EVIDENCE NEED TO BE REFORMED SO THAT THE FACT THAT THE PATIENT'S INSURANCE COMPANY OR SOME OTHER THIRD PARTY HAS ALREADY REIMBURSED HIM FOR SOME COSTS CAN BE ADMITTED IN COURT THE DAMAGE AWARD COULD THEN BE REDUCED BY THIS AMOUNT OR THE THIRD PARTY COULD RECOVER FROM THE DAMAGE AWARD THE AMOUNT IT ALREADY REIMBURSED THE PLAINTIFF MALPRACTICE CLAIMS SHOULD GO THROUGH A PRETRIAL MEDICAL REVIEW PANEL COMPOSED OF MEDICAL EXPERTS THE FINDING OF THE PANEL SHOULD BE ADMISSIBLE AT TRIAL AND CARRY THE WEIGHT OF EXPERT TESTIMONY IF THE PANEL FINDS THERE IS NO MALPRACTICE AS MOST DO THE PLAINTIFF SHOULD BE ABLE TO CONTINUE THE SUIT BUT AT THE RISK OF PAYING THE DEFENSE'S REASONABLE LEGAL FEES SHOULD THE DEFENDANT PREVAIL DEFENDANTS SHOULD BE ALLOWED TO PAY AWARDS IN INSTALLMENTS ESPECIALLY WHEN THE PLAINTIFF IS BEING COMPENSATED FOR DAMAGES THAT HAVE NOT YET OCCURRED SUCH AS FUTURE LOST WAGES WE MUST REMEMBER THAT THE PURPOSE OF GENERAL AND SPECIAL DAMAGES IS TO COMPENSATE THE PLAINTIFF NOT PUNISH THE DEFENDANT FINALLY ONLY DEFENDANTS WHO ARE ACTUALLY AT FAULT SHOULD BE LIABLE NOT SUNDRY BYSTANDERS WHO HAPPEN TO HAVE DEEP POCKETS ABOLISHING JOINT AND SEVERAL LIABILITY IS CLEARLY LONG OVERDUE MEDICAL MALPRACTICE LAW WAS RIPE FOR REFORM BEFORE THE CURRENT HEALTH CARE DEBATE CAME ALONG THE SOLUTION OUTLINED ABOVE SHOULD NOT BE HELD HOSTAGE ANY LONGER TO WASHINGTON POLITICS THESE ARE REFORMS THAT WILL MAKE A DIFFERENCE UNDER ANY REFORM PLAN OR EVEN IN THE ABSENCE OF MAJOR CHANGES IN OTHER AREAS OF OUR HEALTH CARE SYSTEM LEGISLATORS IN CONGRESS AND STATE CAPITOLS SHOULD BEAR THEM IN MIND IF THEY ARE SERIOUS ABOUT SOLVING AMERICA'S HEALTH CARE PROBLEMS FORMER VICE PRESIDENT QUAYLE IS CHAIRMAN OF THE COMPETITIVENESS CENTER OF THE HUDSON INSTITUTE IN INDIANAPOLIS SEE RELATED LETTER LETTERS TO THE EDITOR THE FALSE ISSUE OF MALPRACTICE COSTS WSJ MAY 10 1994 SEE RELATED LETTERS LETTERS TO THE EDITOR LIABILITY IS A DOCTOR'S CONSTANT FEAR WSJ MAY 27 1994 9404130160 9405100115 YY94 MM05 9405270032 940428 REVIEW & OUTLOOK EDITORIAL MORE THAN BOSNIA WE HOPE SOMEONE IS TAKING NOTES ON BOSNIA WHEREVER THIS MESS MAY BE HEADED THE ONE POINT ON WHICH THERE SHOULD BE UNIVERSAL AGREEMENT IS THAT WE DON'T WANT TO REPEAT THE EXPERIENCE BUT IF THE NEXT BOSNIAS ARE TO BE HANDLED BETTER WE SHOULD START THINKING CLEARLY ABOUT WHERE THIS ONE WENT WRONG ONE SCHOOL OF THINKING IN THE US HOLDS THAT WHERE WE WENT WRONG WAS IN ALLOWING OURSELVES TO BECOME SO DEEPLY INVOLVED IN A HAPLESS PLACE WE HAVE CONCLUDED THAT THIS VIEW IS WRONG GIVEN THE REALITIES OF THE INTEGRATING WORLD WE LIVE IN NOW AND THE LATEST CURRENTS IN PUBLIC OPINION SUGGEST THE BROAD PUBLIC IS REASSESSING IT AS WELL THE TECTONIC FORCES OF INTEGRATION WHICH ARE PRIMARILY FINANCIAL HAVE SHIFTED IRREVOCABLY WE CAN'T GO BACK TO 1890 BOSNIA IS ABOUT MORE THAN BOSNIA SLOBODAN MILOSEVIC IS MERELY THE IRRIDENTIST OF THE MOMENT ALL OVER THE WORLD ARE PIRATES MASQUERADING AS NATIONAL LEADERS EAGER TO INVADE AND KILL THE PEOPLE NEXT TO THEM UNDER THE GUISE OF HISTORIC GRIEVANCES SADDAM WAS THE FIRST POST COLD WAR IRRIDENTIST CHINA HAS BEEN CEDED HONG KONG IT WANTS THE SPRATLEYS WE KNOW ABOUT KIM ILSUNG ASSAD SADDAM STILL THE BITTER LOSERS OF THE RUSSIAN EMPIRE AIDID THE BROAD ISSUE THAT HAS TO BE AT LEAST CONFRONTED BY THE REALITY OF THESE OUTLAW REGIMES IS JUST WHAT KIND OF WORLD THE AMERICAN PEOPLE WANT TO LIVE IN IN THE POSTWORLD WAR II PERIOD WE HAVE LIVED IN A WORLD GOVERNED BY THE RULE OF LAW AND ROOTED PRAGMATICALLY IN WESTERN PRINCIPLES THE DDAY ANNIVERSARY APPROACHES BUT THERE IS HARDLY ANY REASON WHY THIS CONDITION SHOULD ENDURE IF UNPROTECTED A MILOSEVIC VICTORY IS PUTTING THE RULE OF PIRACY IN PLAY IT PLAYS ROUGH HISTORY SUGGESTS THAT WHEN THIS VIRUS IN LOOSED ON THE WORLD SCENE IT'S LIKELY TO BE CONTAGIOUS IF NOTHING ELSE THE DEMOCRATIC WORLD SHOULD TAKE WARNING IN A SENSE OF COURSE THESE POINTS ARE SOMEWHAT ACADEMIC GIVEN THE CHARACTER OF OUR PRESENT GOVERNMENT WE WORRY A LOT THAT THE BOSNIANS HAVE GOTTEN INTO TROUBLE DURING THE WRONG PRESIDENCY WE WORRY THAT BILL CLINTON IS NOT UP TO SUSTAINING A LARGE MILITARY OPERATION OR A COHERENT FOREIGN POLICY YES MR CLINTON WILL AT A GIVEN HOUR ON A GIVEN DAY SPEAK WHAT WILL SOUND LIKE AN ARTICULATE SENSIBLE RATIONALE FOR USING MILITARY FORCE AGAINST THE SERBS BUT IF THE CLINTON CHARACTER HAS A DEFINING QUALITY IT IS EQUIVOCAL COMPROMISE AS EVIDENCED IN DOMESTIC POLICY OR EVEN THE WHITEWATER DEFENSE ANY CURRENT POSITION MAY BE DISCARDED IN THE FACE OF CRITICISM OR RESISTANCE SUCH SUPPLENESS MAY WORK FOR WHITEWATER BUT IT WON'T WORK IN WAR WE WORRY THAT EVEN A WELLCONCEIVED PLAN OF MILITARY ACTION AGAINST STRATEGIC INSTALLATIONS INSIDE SERBIA COULD BE SHUT DOWN IN MIDCOURSE BY RUSSIAN INSISTENCE ON A NEGOTIATED SETTLEMENT MILOSEVIC AND KARADZIC WOULD BE LET OFF THE HOOK PUT IT THIS WAY THE MUCH BETTER MILITARY TEAM OF BUSHPOWELLCHENEY FOUND A WAY TO RATIONALIZE LETTING SADDAM HUSSEIN OFF THE HOOK THE LESSER TEAM OF CLINTONCHRISTOPHERWHOEVER WILL CHARACTERISTICALLY PREFER CEASEFIRES SO AS TO PURSUE THE NEGOTIATION OF MORE SERBIAN PROMISES BEYOND THIS MR CLINTON'S INTERESTS MAY WANDER US LEADERSHIP WILL PAY A PRICE FOR LAUNCHING A SIGNIFICANT MILITARY OPERATION TO PRODUCE AN INDETERMINATE RESULT OUR STRONG SENSE IS THAT THE AMERICAN PUBLIC IS ALREADY CONFUSED AND UNSETTLED BY THE HALFBAKED IRAQI OUTCOME ONE MORE WORRY LIBERALS AGAIN ARE IN A LATHER TO HAVE A DEMOCRATIC PRESIDENT DISPLAY SOME MILITARY METTLE WE WATCHED THEM BAIL OUT WHEN LYNDON JOHNSON REPLACED AN EARLIER GOLDEN BOY HAVING STATED OUR CONCERNS ABOUT ALLOWING THE CLINTON CHARACTER INTO WAR WE'LL OFFER A SHORT REPLY THIS IS THE ONLY PRESIDENT WE'VE GOT HISTORY WON'T PUT ITSELF ON HOLD UNTIL THE UNITED STATES MAKES IT TO 1996 OR EVEN TO THIS FALL'S DEFINING CONGRESSIONAL ELECTIONS BOSNIA IS NOW AND WE HAD BETTER RECOGNIZE THE POWERFUL FORCES RUNNING FAR TO THE NORTH AND SOUTH OF GORAZDE FOR IF WE ARE TO SPECULATE HOW THE VIOLENCE MIGHT TURN DANGEROUS ON A WORLD SCALE THERE IS ANOTHER FORCE THAT NEEDS TO BE RECKONED WITH ISLAM THE PRIMARY SERBIAN VICTIMS IN BOSNIA ARE MUSLIMS NOT MANY PEOPLE IN EUROPE OR THE US ARE LOSING SLEEP OVER THIS FACT BUT THE MUSLIM WORLD EXTENDING ACROSS ASIA AND INTO THE MIDDLE EAST AND AFRICA IS WATCHING INTENTLY MORE SPECIFICALLY THE FATE OF THE BOSNIAN MUSLIMS IS OF PARTICULAR INTEREST TO THE SECULAR WESTERNLEANING GOVERNMENTS OF TURKEY EGYPT AND PAKISTAN ISLAMIC FUNDAMENTALISM WHATEVER ITS COMPLEXITY IS ABOUT WITHDRAWING BILLIONS OF THE WORLD'S POPULATION FROM THE INTELLECTUAL DYNAMICS OF MODERNIZATION AT ITS MOST EXTREME THE GOVERNMENT IN IRAN OR TERRORISTS IN EGYPT IT IS ABOUT EXPORTING HOSTILITY TO WESTERN INTERESTS IN TURKEY THE FUNDAMENTALISTS HAVE JUST WON THE MAYORALTIES OF ANKARA AND ISTANBUL TURKEY'S PRIME MINISTER TANSU CILLER RECENTLY VISITED WASHINGTON AND THE CAPITALS OF EUROPE EXHORTING HER LISTENERS NOT TO SEND A MESSAGE TO THE PUBLICS IN THESE SECULAR ISLAMIC COUNTRIES THAT THE WEST IS ESSENTIALLY A CLOSED CHRISTIAN CLUB THAT IS THE MESSAGE EUROPE REPEATEDLY SENDS BY DENYING TURKEY MEMBERSHIP IN THE COMMON MARKET AND IT IS THE MESSAGE THE WEST SENT BY IMPOSING AN ARMS EMBARGO THAT AFFECTED ONLY BOSNIAN MUSLIMS WHO AFTER THEY TRIED TO DEFEND THEIR TOWNS WERE CRITICIZED BY EUROPE AND WASHINGTON FOR MAKING THE PEACE NEGOTIATIONS DIFFICULT WHAT TO DO FOR STARTERS THE WEST'S LEADERS ITS DIPLOMATS AND THE FECKLESS UNITED NATIONS REPRESENTATIVES SHOULD RECOGNIZE THAT STOP THE FIGHTING ISN'T A STRATEGIC VISION FOR THE WORLD WE'VE INHERITED HAD SOME LARGER WORLDVIEW EXISTED FOUR YEARS AGO GEORGE BUSH AND JIM BAKER WOULD NOT HAVE AGREED TO THE ARMS EMBARGO THAT MILOSEVIC REQUESTED TO BEAT UP ON HIS DEFENSELESS OPPONENTS IN BOSNIAHERZEGOVINA BILL CLINTON INHERITED THAT EMBARGO IMPOSED BY THE WEST ON PEOPLE WILLING TO DEFEND THEIR CITIES AND FAMILIES HE DOES NOT HAVE TO CONTINUE IT MR CLINTON COULD ALSO SHOW AN AWARENESS OF THE WORLD'S CURRENT REALITIES BY RAISING THE ISSUE OF WHAT PRICE RUSSIA WILL EXTRACT FOR USING ITS INFLUENCE OVER THE SERBS TO PULL THE WEST'S FAT OUT OF THE FIRE IN A SENSE RUSSIA HAS MANAGED TO REASSERT AN INFLUENCE OVER THE FORMER YUGOSLAVIA IT LOST BACK IN 1948 IF RUSSIA IS PEEVED OVER BEING LEFT OUT OF NATO PLANS THE SERB OFFENSIVE CONTINUES IT STOPS WHEN RUSSIA DECIDES IT SHOULD WILL THIS COOPERATION NOW MEAN THAT THE RUSSIANS GET A FREE PASS WHEN THEY STIR ETHNIC CONFLICT TO REEXTEND THEIR EFFECTIVE AUTHORITY OVER LATVIA POLAND OR SOME OTHER RECENTLY FREE PIECE OF THE NEAR ABROAD BOMBING SERBIA'S MILITARY INFRASTRUCTURE MAKES SENSE NOT BECAUSE IT WILL STOP THE FIGHTING BUT AS AN ACT OF DETERRENCE IN THIS RESPECT WE SHOULD START THINKING ABOUT A DANGEROUS WORLD IN WHICH THE MODEL OF DETERRENCE IS NO LONGER ALWAYS A CLAUSEWITZIAN WAR A LA VIETNAM BUT INSTEAD A TOUGH BUT DISCRIMINATE SHOT ACROSS THE BOW OF THE SORT USED AGAINST THE BARBARY PIRATES AND THE BEY OF ALGIERS THE WEST'S INVESTMENT IN ITS MILITARY BASE IS NOT OBSOLETE BUT IT DOES NEED FRESH THOUGHT HOWEVER SMALL ITSELF BOSNIA PERSISTS AS A CONUNDRUM AND CHALLENGE BECAUSE IT IS TRYING TO TEACH US SOMETHING ABOUT HOW TO CONDUCT OUR WORLD AS IT STRUGGLES AND FIGHTS ITS WAY TOWARD THE NEXT CENTURY THE OPENING AND EXPANSION OF THE WORLD TRADING SYSTEM AND INTEGRATION OF ECONOMIES IS CLEARLY DOING MORE TO LIFT THE WELLBEING OF THE WORLD'S PEOPLES THAN ANY PREVIOUSLY TRIED SYSTEM BUT WITH THIS PROCESS WILL COME MORE BOSNIAS MORE MARAUDERS LIKE MILOSEVIC MORE ATTEMPTS TO EXTERMINATE ENEMIES ISOLATIONISM IS JUST NOT AN OPTION ANYMORE WHETHER BOSNIA NOW OR BOSNIA THE NEXT TIME THESE CHALLENGES TO THE WORLD'S CIVIL ORDER ARE GOING TO REQUIRE FROM OUR POLITICAL AND INTELLECTUAL LEADERSHIP A LARGER CLEARER AND GUTSIER VIEW THAN THEY ARE DISPLAYING RIGHT NOW SEE RELATED LETTER LETTERS TO THE EDITOR ISLAM HELD A LIGHT DURING THE DARK AGES WSJ MAY 12 1994 SEE RELATED LETTER LETTERS TO THE EDITOR HISTORICAL AMNESIA WSJ MAY 27 1994 9404280150 9405120150 YY94 MM05 9405250169 940418 LETTERS TO THE EDITOR SCIENTIFIC TESTIMONY SUPPORTED DDT USE WILLIAM D RUCKELSHAUS'S SELFSERVING MARCH 21 LETTER TO THE EDITOR DEFENDING HIS JUNE 1972 BAN ON DDT OMITS THE ONE FACT THAT INVALIDATES HIS ARGUMENT DURING 1972 THE ENVIRONMENTAL PROTECTION AGENCY HELD OFFICIAL HEARINGS ON THE SCIENTIFIC EVIDENCE CONCERNING DDT AFTER SEVEN MONTHS AND 9000 PAGES OF TESTIMONY EPA HEARING EXAMINER EDMON SWEENEY DECIDED ON THE BASIS OF THE EVIDENCE THAT DDT SHOULD NOT BE BANNED IN HIS FINAL DECISION APRIL 26 1972 MR SWEENEY STATED DDT IS NOT A CARCINOGENIC MUTAGENIC OR TERATOGENIC HAZARD TO MAN THE USES OF DDT UNDER THE REGULATIONS INVOLVED HERE DO NOT HAVE A DELETERIOUS EFFECT ON FRESHWATER FISH ESTUARINE ORGANISMS WILD BIRDS OR OTHER WILDLIFE THE EVIDENCE IN THIS PROCEEDING SUPPORTS THE CONCLUSION THAT THERE IS A PRESENT NEED FOR THE ESSENTIAL USES OF DDT MR SWEENEY'S RULING WAS IN AGREEMENT WITH THE ASSESSMENT OF THE WORLD'S MAJOR SCIENTIFIC ORGANIZATIONS WHICH HAD TESTIFIED ON BEHALF OF DDT DURING THE HEARINGS EPA ADMINISTRATOR RUCKELSHAUS DID NOT ATTEND ANY OF THESE HEARINGS AND IT SEEMS DID NOT EVEN READ THE SCIENTIFIC TESTIMONY INSTEAD SIX WEEKS LATER HE OVERRULED MR SWEENEY'S DECISION AND BANNED DDT BASED ON THE POLITICAL PROPAGANDA OF ENVIRONMENTAL GROUPS THAT HAD USED THE DDT SCARE STORIES TO GAIN MEMBERS AND FUNDS MR RUCKELSHAUS NOW CALLS FOR A RATIONAL APPROACH TO ENVIRONMENTAL REGULATION BUT HOW IS THIS POSSIBLE WHEN HE AND OTHER ENVIRONMENTAL DECISIONMAKERS CHOOSE TO IGNORE SCIENTIFIC EVIDENCE AND REWRITE HISTORY SEE RELATED LETTER LETTERS TO THE EDITOR US BULLIED OTHERS INTO BANNING DDT WSJ MAY 25 1994 9404180006 YY94 MM05 9405250162 940415 REVIEW & OUTLOOK EDITORIAL COMPREHENDING RWANDA WHY ARE THEY KILLING IN RWANDA A NATION'S LEADER GETS ASSASSINATED AND WITHIN A WEEK TENS OF THOUSANDS OF YOUNG MEN PICK UP THEIR GUNS AND START SLAUGHTERING SOME 20000 PEOPLE REPORTEDLY LIE DEAD IN THE STREETS NOMINALLY TWO ARMIES ARE FIGHTING OVER CONTROL OF A GOVERNMENT BUT THE RELATIONSHIP BETWEEN MOST OF THIS KILLING AND THE CIVIL WAR OF A QUASINATION CALLED RWANDA IS AT BEST TENUOUS WOMEN ARE BEING DRAGGED FROM THEIR HOMES AND HACKED TO DEATH YOUNG MEN ARE GOING INTO HOSPITALS AND SHOOTING PATIENTS IN THEIR COTS THESE ARE APPARENTLY NOT SUBSIDIARY ATROCITIES BUT THE MAIN ACTION SOMETIMES THE WORD TRIBALISM OR THE PHRASE ETHNIC FEUDING IS USED TO EXPLAIN THIS SORT OF CONFLICT THAT'S ONLY PART OF THE EXPLANATION BELGIUM HAS ETHNIC RIVALRY BUT WALLOONS AND FLEMINGS DON'T GO KILLING EACH OTHER IN BELGIUM THERE IS AN EFFECTIVE STATE AND A HISTORY OF ADHERING TO PRINCIPLES OF CIVIL AND SOCIAL BEHAVIOR THAT ENABLE PEOPLE TO GET ALONG AS A RESULT MOST BELGIANS DON'T WAKE UP IN THE MORNING AND WORRY ABOUT WHETHER THEY WILL FALL VICTIM TO AN ETHNIC POGROM IN PLACES LIKE RWANDA WHERE EVERY DAY IS A SCRAMBLE FOR EXISTENCE IN THE BEST OF TIMES THERE ISN'T THAT ASSURANCE IF WHAT LITTLE ORDER THE STATE CAN PROVIDE SUDDENLY BREAKS DOWN THE PARANOIA OF USAGAINSTTHEM FILLS THE VOID NO DOUBT THE YOUNG MEN DOING THE KILLING TODAY BELIEVE THE OTHER GUY WOULD JUST AS READILY DO THE SAME TO THEM WHETHER THAT SUSPICION IS TRUE AT THE BEGINNING IT'S CERTAINLY TRUE BY THE END BLOODLUST OR A CARNAL PLEASURE IN MAYHEM IS NOT A SIDE OF HUMAN NATURE THAT PEOPLE LIKE TO DISCUSS IN A REUTERS DISPATCH FROM RWANDA A FEW DAYS AGO WE READ ABOUT YOUNG MEN WITH MACHETES STANDING AMONG PILES OF BODIES AND GRINNING THE BEHAVIOR OF THE VARIOUS ETHNIC MILITIA IN SERBIA HAS HARDLY BEEN BETTER REMINDING US THAT THIS KIND OF BARBARISM DOESN'T HAPPEN ONLY IN AFRICA IN A WIDELY DISCUSSED ESSAY IN THE ATLANTIC MONTHLY ROBERT D KAPLAN RECENTLY WROTE ABOUT WHAT HE CALLED THE COMING ANARCHY HE DESCRIBED A PLANET IN WHICH CIVIC ORDER DECAYS AND COLLAPSES WITH THE EXCEPTION OF THE INDUSTRIALIZED NATIONS WHICH MR KAPLAN LIKENS TO A LIMOUSINE DRIVING THOUGH A WAR ZONE THOUGH EXAGGERATED THESE FEARS DO CAPTURE THE CHALLENGE FACING CERTAIN PARTS OF THE WORLD THE NATION STATE HASN'T TAKEN ROOT IN THESE PLACES AND ANY ATTEMPT BY OUTSIDERS TO PROVIDE ORDER WOULD BE DEEMED IMPERIALISM OR A MISAPPREHENSION OF THE LOCAL CULTURE WHERE THERE IS NO STATE TO EXERCISE A RESPONSIBLE MONOPOLY ON VIOLENCE AND THEREBY CURB PRIVATE VIOLENCE SOMETHING LIKE A WAR OF ALL AGAINST ALL IS THE DEFAULT MODE FOR YOUNG MEN LIVING LIVES OF IDLENESS AND INSECURITY WITH NO OPPORTUNITIES BEING PART OF AN ARMED BAND OFFERS AN ESCAPE FROM TEDIUM THE PLEASURES OF COMRADESHIP AND OPPORTUNITIES FOR ENRICHMENT MOST OF ALL IT OFFERS ALLIES AND A MODICUM OF SECURITY IN A WORLD WITHOUT LAW NOW THAT A REBEL ARMY REPRESENTING THE TUTSI ETHNIC GROUP IS POISED TO OCCUPY THE CAPITAL KIGALI RWANDA MAY SUBSIDE INTO AN UNEASY TRUCE BETWEEN THE TUTSIS AND HUTUS SUCH AS HAS EXISTED IN THE INTERVALS BETWEEN PREVIOUS OUTBREAKS OF SLAUGHTER SINCE THE END OF BELGIAN COLONIALISM ANOTHER POSSIBILITY IS THAT THE TUTSI OCCUPIERS MAY UNLEASH A NEW WAVE OF BLOODSHED IN REPRISAL FOR WHAT HAS BEEN HAPPENING TO THEIR ETHNIC KIN INSIDE THE CITY THESE PAST COUPLE OF WEEKS THE PICTURE OF BELGIAN AND FRENCH PARATROOPERS SENT TO ESCORT THEIR NATIONALS TO SAFETY STANDING BACK WHILE THE SLAUGHTER HAS UNFOLDED ISN'T VERY INSPIRING BUT WE DON'T LIVE IN A WORLD THAT RECOGNIZES A RESPONSIBILITY TO PROVIDE ORDER FOR THOSE PEOPLE STUCK IN PLACES WHERE HISTORY OR THE INTIMIDATIONS OF CULTURAL POLITICS HAVE MADE IT HARD FOR THEM TO GOVERN THEMSELVES WE MIGHT NOTE THAT THE WEST AS IT IS KNOWN WAS BUILT OUT OF CENTURIES OF STRIFE HOWEVER ITS BEST POLITICAL AND INTELLECTUAL LEADERS NEVER CEASED WORKING TO ESTABLISH PRINCIPLES OF LAW GOVERNANCE COMMERCE AND PERSONAL BEHAVIOR THAT WOULD MINIMIZE THE INCENTIVES TO VIOLENCE THEY SUCCEEDED EVENTUALLY AND WESTERN CIVILIZATION FLOURISHED AMID CHAOS AND KILLING IN MANY PLACES NOW THOSE PRINCIPLES DESERVE REDISCOVERY SEE RELATED LETTERS LETTERS TO THE EDITOR RWANDA WAS SUPPLIED WITH MACHINES OF DEATH WSJ MAY 3 1994 SEE RELATED LETTER LETTERS TO THE EDITOR DON'T GLORIFY THE OPPRESSOR WSJ MAY 25 1994 9404150074 9405030044 YY94 MM05 9405250156 940321 LETTERS TO THE EDITOR DDT BAN WAS BASED ON SOLID SCIENCE LIKE DDT ITSELF MISCONCEPTIONS ABOUT THE 1972 DECISION TO CANCEL CERTAIN USES OF THE CHEMICAL ARE REMARKABLY PERSISTENT DR FREDRIC M STEINBERG'S MARCH 7 LETTER TO THE EDITOR ABOUT THE RAVAGES OF MALARIA IN GHANA EMBODIES MOST OF THEM LET ME ADDRESS THEM ONE MORE TIME THE BAN ON DDT APPLIED ONLY TO ITS USE IN THE US NOT TO ANY OTHER COUNTRY THE ADMINISTRATOR OF EPA HAS NO AUTHORITY TO RESTRICT THE USE OF PESTICIDES OUTSIDE OF THE US IN FACT DDT WAS USED FOR YEARS AFTER THE 1972 DECISION IN SRI LANKA THEN CEYLON TO EFFECTIVELY DEAL WITH THE EXACT SAME PROBLEM THAT EXISTS IN GHANA THE DDT DECISION MADE PROVISION FOR ITS EMERGENCY USE IN THE US IT WAS USED SUBSEQUENTLY IN OREGON ON A TUSSOCK MOTH INFESTATION THE SCIENTIFIC BASIS FOR THE BAN WAS SOLID THEN AND STILL STANDS DDT IS A HIGHLY PERSISTENT CHEMICAL THAT MOVES UP THE FOOD CHAIN AND IT ACCUMULATES IN THE FATTY TISSUE OF HUMANS THE DIRECT ECOLOGICAL EFFECT AND THE BASIS FOR THE DECISION WAS ITS PROVEN IMPACT ON THE THICKNESS OF EGG SHELLS OF RAPTORS BIRDS SUCH AS THE BROWN PELICAN AND THE PEREGRINE FALCON THE DECISION WAS NOT BASED ON ANY CLAIM OF HUMAN CARCINOGENICITY DR STEINBERG IS SIMPLY WRONG ON THIS POINT I PLEAD GUILTY TO MAKING A POLITICAL DECISION SMALL P POLITICAL THE EPA ADMINISTRATOR IS CHARGED BY STATUTE WITH WEIGHING THE BENEFITS AGAINST THE RISKS OF THE USE OF PESTICIDES THAT IS A POLITICAL DECISION IN THE CLASSIC SENSE THE ONLY CONTEXT IN WHICH POLITICS PLAYED A ROLE IN THIS COUNTRY IN 1972 THE RISKS TO OUR ENVIRONMENT IN MY OPINION OUTWEIGHED THE BENEFITS OF CONTINUED USE OF DDT PRIMARILY ON COTTON WERE THIS STATUTE THE LAW OF THE LAND IN GHANA MY DECISION AS APPLIED THERE WOULD HAVE BEEN DIFFERENT DR STEINBERG SHOULD KNOW THAT AND MAKING WILD ACCUSATIONS ADDS NOTHING TO THE NECESSARY DEBATE ABOUT A MORE RATIONAL APPROACH TO ENVIRONMENTAL REGULATION SEE RELATED LETTER LETTERS TO THE EDITOR SCIENTIFIC TESTIMONY SUPPORTED DDT USE WSJ APRIL 18 1994 SEE RELATED LETTER LETTERS TO THE EDITOR US BULLIED OTHERS INTO BANNING DDT WSJ MAY 25 1994 9403210140 9404180001 YY94 MM04 YY94 MM05 9405240155 940420 HIGHTECH HEALTH HOSPITALS RUSH TO BUY A 3 MILLION DEVICE FEW PATIENTS CAN USE SURGEONS WANT GAMMA KNIFE FOR CERTAIN BRAIN CASES AND OFTEN GET THEIR WAY TWO MACHINES 10 MILES APART BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL CORAL GABLES FLA THE GAMMA KNIFE IS A MEDICAL DEVICE THAT COSTS 3 MILLION IT EMITS GAMMA RADIATION TO TREAT BRAIN TUMORS AND LESIONS BUT IT IS USED ON ONLY A FEW TYPES OF TUMORS AND MOST OF THE 16 GAMMA KNIVES IN THE US ARE IDLE FOR ALL BUT TWO DAYS A WEEK BY SOME ESTIMATES JUST SIX OF THEM COULD HAVE TREATED ALL AMERICAN PATIENTS LAST YEAR IS THIS A CASE OF MEDICAL EXCESS NOT TO SOME DOCTORS GAMMA KNIVES ARE THE NEWEST MEDICAL STATUS SYMBOL AND HOSPITALS AND PHYSICIANS ARE CLAMORING FOR THEM MEDICAL CENTERS IN PHILADELPHIA LOS ANGELES SAN DIEGO AND KANSAS CITY MO ARE ABOUT TO INSTALL THEM DOCTORS IN A HALFDOZEN OTHER CITIES INCLUDING NEW YORK PHOENIX AND BIRMINGHAM ALA ARE AGITATING FOR THEM AND DEMAND IS BUILDING EVEN BEFORE THEIR CLINICAL VALUE IS FULLY KNOWN THIS OUTBREAK OF GAMMAMANIA REFLECTS A PARADOX IN AMERICAN MEDICINE A NATIONAL EAGERNESS TO EMBRACE THE FANCIEST NEW TECHNOLOGIES DESPITE RISING CONCERN ABOUT THE COST OF HEALTH CARE DOCTORS COVET THE PRESTIGE OF HAVING THE BEST EQUIPMENT DESPERATELY SICK PATIENTS HOPE FOR A BREAKTHROUGH THAT MIGHT SAVE THEM AND HOSPITALS ARE IN A MEDICAL ARMS RACE IF THEY DON'T HAVE THE LATEST GADGET STAR DOCTORS AND THEIR PATIENTS MAY BOLT FOR PEOPLE WORRIED BY RUNAWAY COSTS THE GAMMA KNIFE IS A TROUBLING CASE IT ALL COMES DOWN TO A RACE TO SEE WHO CAN HAVE THE BETTER TOYS CHARGES JAMES PROFFITT HEALTHBENEFITS MANAGER AT MCDONNELL DOUGLAS CORP OF ST LOUIS IF WE'RE EVER GOING TO GET COSTS UNDER CONTROL WE'VE GOT TO LEARN TO SHARE THE RESOURCES THAT WE ALREADY HAVE FRUGALITY SUCH AS THAT SHAPES MEDICALTECHNOLOGY USE IN OTHER COUNTRIES NOTABLY BRITAIN AND CANADA THERE GOVERNMENT BOARDS DECIDE WHICH MEDICAL CENTERS IF ANY WILL GET COSTLY NEW DEVICES TO DATE CANADIAN AUTHORITIES HAVEN'T APPROVED A SINGLE GAMMA KNIFE PURCHASE CANADIANS WANTING THE TREATMENT HAVE TO GO ABROAD BUT US DOCTORS AND HOSPITALS AREN'T HOBBLED THAT WAY AND BY AGGRESSIVELY RECRUITING PATIENTS PHYSICIANS OFTEN CAN CREATE DEMAND FOR COSTLY NEW SERVICES THAT THEY WANT THEIR HOSPITAL TO OFFER THAT IS ESPECIALLY TRUE WITH THE GAMMA KNIFE ARGUMENTS ABOUT EXCESS COSTS AND OVERCAPACITY KEEP GETTING TRAMPLED IN THE STAMPEDE LAST FALL MR PROFFITT OF MCDONNELL DOUGLAS LEARNED THE DIFFICULTY OF REINING IN THE HIGHTECH NEUROSURGERY HE TRIED TO BLOCK A GAMMA KNIFE PURCHASE IN KANSAS CITY ARGUING THAT THE FEW PATIENTS WHO NEEDED IT COULD GO TO MEDICAL CENTERS IN CHICAGO OR DENVER BUT WHEN A TOP NEUROSURGEON HINTED THAT HE MIGHT LEAVE KANSAS CITY IF HE DIDN'T GET A GAMMA KNIFE OPPOSITION TO THE PURCHASE COLLAPSED PEOPLE WANT BRAGGING RIGHTS LARRY ATKINS SAYS THEY WANT THE CHANCE TO SAY WE HAVE IT AND YOU DON'T' THAT'S FINE WITH MR ATKINS HE IS PRESIDENT OF AMERICAN HEALTH SERVICES CORP OF NEWPORT BEACH CALIF WHICH HAS A SUBSIDIARY THAT INSTALLS GAMMA KNIVES IN HOSPITALS DESPITE ITS NAME THE GAMMA KNIFE AVOIDS THE NEED TO OPEN PATIENTS' SKULLS AND CUT AWAY BRAIN TUMORS RATHER IT AIMS GAMMA RAYS FROM 201 TINY SOURCES OF RADIOACTIVE COBALT SO THAT THEY CONVERGE PRECISELY ON A TARGET WITHIN THE BRAIN PATIENTS WHILE AWAKE ARE SLIPPED INSIDE A FIVEFOOT DOME FOR 10 MINUTES TO THREE HOURS OF NEARLY PAINLESS TREATMENT THEY GENERALLY GO HOME IN A DAY OR SO OF ALL THE WAYS TO DELIVER RADIATION TO THE BRAIN THE GAMMA KNIFE IS THE MOST PRECISE AND MOST EXPENSIVE PERPATIENT CHARGES TYPICALLY RUN 10000 TO 25000 THE MACHINERELATED COST IS ABOUT HALF THE TOTAL THE REST GOING TO A SURGEON A RADIOLOGIST AND A PHYSICIST CONSULTANTS HIRED BY THE DEVICE'S MAKER ELEKTA INSTRUMENT AB OF SWEDEN SAY THOSE COSTS ARE LESS THAN HALF THE BILL FOR BRAIN SURGERY WHICH OFTEN INVOLVES A 10DAY HOSPITAL STAY THEY ALSO CONTEND COSTS ARE VERY CLOSE FOR THE GAMMA KNIFE AND ITS MAIN ALTERNATIVE THE LINEAR ACCELERATOR WHICH USES A SIMILAR BUT MORE CUMBERSOME METHOD OF AIMING RADIATION INTO THE BRAIN HOWEVER MISSOURI'S HEALTH FACILITIES REVIEW COMMITTEE SAYS LINEARACCELERATOR THERAPY IS FAR CHEAPER RUNNING ABOUT 6000 PER PATIENT LAST YEAR 2000 PATIENTS IN THE US GOT GAMMA KNIFE TREATMENT INSTEAD OF SURGERY ABOUT 40 HAD MALFORMED BLOOD VESSELS IN THEIR BRAINS THAT NEEDED TO BE DESTROYED MOST OF THE REST HAD DEEPSEATED ACOUSTIC NEUROMAS OR MENINGIOMAS TWO RARE KINDS OF BENIGN BRAIN TUMORS THAT CAN'T EASILY BE REMOVED WITH A SCALPEL WHETHER THE GAMMA KNIFE IS SUITABLE FOR A WIDER RANGE OF CASES IS CONTROVERSIAL ELEKTA IS PROMOTING IT AS A POTENTIAL BREAKTHROUGH FOR MANY KINDS OF BRAIN CANCER AND PERHAPS FOR EPILEPSY AND PARKINSON'S DISEASE AS WELL SOME NEUROSURGEONS AREN'T CONVINCED IT'S A TECHNOLOGY IN SEARCH OF A DISEASE ASSERTS ONE NEAL KASSELL OF THE UNIVERSITY OF VIRGINIA ONE OF THE MORE CONSERVATIVE USERS THE MAYO CLINIC IN ROCHESTER MINN BOUGHT A GAMMA KNIFE TWO YEARS AGO BUT USES IT ONLY ON ESPECIALLY TRICKY CASES INVOLVING IRREGULARLY SHAPED BRAIN LESIONS MAYO'S HEAD OF NEUROSURGERY ROBERT PIEPGRAS SAYS MOST BRAIN LESIONS CAN BE TREATED ELSEWHERE WITH A LINEAR ACCELERATOR BUT OTHER NEUROSURGEONS ARE EAGER TO EXPAND USE OF THE GAMMA KNIFE L DADE LUNSFORD IN PITTSBURGH IS TRYING IT ON PATIENTS WITH LUNG OR BREAST CANCER THAT HAS SPREAD TO THE BRAIN WHETHER THIS WILL IMPROVE THEIR SURVIVAL RATES ISN'T CLEAR WHICH IS WHY HE IS DOING CLINICAL TRIALS DR LUNSFORD THINKS THE DEVICE MAY HELP PATIENTS WITH AS MANY AS THREE BRAIN TUMORS THOUGH FRESH MALIGNANCIES OFTEN FORM SOON AFTER TREATMENT IF ALL GOES WELL HE SAYS THE DEVICE MIGHT BE USABLE ON AT LEAST 30000 US PATIENTS A YEAR SUCH ENTHUSIASM IS AT ITS PEAK IN SOUTHERN FLORIDA WHERE TWO NEARBY HOSPITALS ARE BATTLING TO SEE WHICH CAN MAKE THE MOST OF THE GAMMA KNIFE A MIDSIZE COMMUNITY HOSPITAL DOCTORS HOSPITAL IN CORAL GABLES ACTED FIRST INSTALLING ONE LAST OCTOBER ON MARCH 28 MIAMI'S BIGGEST TEACHING HOSPITAL JACKSON MEMORIAL MEDICAL CENTER ACTIVATED ITS GAMMA KNIFE OFFICIALS AT BOTH FACILITIES CONCEDE IT IS RIDICULOUS TO HAVE TWO SUCH SPECIALIZED MACHINES ONLY 10 MILES APART YET NEITHER WOULD DREAM OF YIELDING TO THE OTHER IN THE WORDS OF WILLIAM COMTE A SENIOR VICE PRESIDENT AT HEALTHSOUTH REHABILITATION CORP OF BIRMINGHAM ALA WHICH OWNS DOCTORS HOSPITAL DOES THIS GO AGAINST EVERYTHING YOU'RE SEEING IN HEALTH CARE TODAY YES IT'S CRAZY BUT WE THINK OUR PROGRAM HAS A GREAT DEAL OF CREDIBILITY THE 226BED HOSPITAL IN CORAL GABLES IS PINNING ITS HOPES ON AIZIK WOLF A 37YEAROLD SURGEON WHO HAILS THE GAMMA KNIFE AS THE GOLD STANDARD FOR NEUROSURGERY DR WOLF LEFT THE UNIVERSITY OF MARYLAND AND CAME HERE PARTLY FOR THE CHANCE TO RUN HIS OWN GAMMA KNIFE CENTER DR WOLF SAYS HE NOW CAN TACKLE THE MOST DIFFICULT CASES AND TREAT THEM HIS WAY THE SELFSTYLED MAVERICK SOMETIMES OPERATES THE MACHINE WHILE WEARING A GRAY SUIT INSTEAD OF GREEN SURGICAL GARB AND WHILE OTHERS KEEP GAMMA KNIFE PATIENTS IN THE HOSPITAL OVERNIGHT HE DISCHARGES THEM WITHIN HOURS OF TREATMENT EVEN LETS SOME DRIVE HOME SOME PHYSICIANS QUESTION WHETHER DR WOLF IS USING THE GAMMA KNIFE IN BORDERLINE CASES IN JANUARY HE USED IT ON A PATIENT WITH NINE MALIGNANT BRAIN TUMORS I DON'T THINK THAT'S AN ESPECIALLY GOOD CASE FOR TREATMENT SAYS DAVID LARSON A RADIATION ONCOLOGIST AT THE UNIVERSITY OF CALIFORNIA AT SAN FRANCISCO DR WOLF REPLIES WHY NOT GIVE A PATIENT LIKE THAT A CHANCE WHILE IT IS TOO EARLY TO KNOW FOR SURE HE THINKS THE PATIENT'S BRAIN CANCER HAS STABILIZED DR WOLF SAYS HIS CRITICS MAY HAVE THEIR OWN BIASES BECAUSE GREATER USE OF THE GAMMA KNIFE COULD MEAN LESS WORK FOR TRADITIONAL BRAIN SURGEONS THE NEUROSURGERY COMMUNITY WILL HAVE TO COME TO TERMS WITH HOW SUCCESSFUL THE GAMMA KNIFE WILL BE HE SAYS OPTIMISM SUCH AS HIS PLAYS WELL WITH PATIENTS FACING A DISEASE LIKE BRAIN CANCER MANY TRY ANYTHING THAT MIGHT WORK PATIENTS AND THEIR FAMILIES SOMETIMES TRACK DOWN GAMMA KNIFE CENTERS GUIDED BY MAGAZINE CLIPPINGS OR NEWSPAPER ADS DR WOLF'S HOSPITAL RUNS ADS IN FLORIDA NEWSPAPERS ADS THAT HELPED BRING IN 70 PATIENTS IN FIVE MONTHS ONE SHOWS A WORRIED MAN BEING HUGGED BY HIS WIFE A SENTENCE OR TWO ABOUT THE GAMMA KNIFE THE PHONE NUMBER FOR DOCTORS HOSPITAL AND THE LINE SINCE MY PHYSICIAN TOLD ME I HAVE A BRAIN TUMOR EVERY MOMENT COUNTS LAST AUTUMN LAURA ATTIAS SAW ONE OF THOSE ADS IN THE FLORIDA TIMESUNION OF JACKSONVILLE SHE GOT AN APPOINTMENT FOR HER 71YEAROLD HUSBAND MARVIN ALTHOUGH THE GAMMA KNIFE DIDN'T ENTIRELY STOP THE GROWTH OF HIS MALIGNANT BRAIN TUMOR HE AND HIS WIFE BOTH SAY DR WOLF IS TERRIFIC MEANWHILE IN MIAMI JACKSON MEMORIAL'S SURGEONS FELT THE LURE OF THE GAMMA KNIFE TOO EVEN AS DR WOLF'S PLANS WERE TAKING SHAPE IN 1992 SJ PEERLESS A NEUROSURGEON AT THE MIAMI HOSPITAL WROTE TO ITS CHIEF EXECUTIVE AND URGED HIM TO GET THE DEVICE DR PEERLESS PREDICTED THAT AFTER A TWOYEAR STARTUP IT COULD BRING IN AT LEAST 2 MILLION A YEAR IN PROFIT THAT WOULD BE AN IMPORTANT OPPORTUNITY FOR THE DEPARTMENTS OF NEUROSURGERY RADIATION THERAPY RADIOLOGY AND PARTICULARLY FOR THE PATIENTS OF SOUTH FLORIDA AND ABROAD HE WROTE JACKSON MEMORIAL PUSHED AHEAD WE WANTED TO BE THE HOSPITAL THAT WOULD OFFER ALL THE SERVICES SOMEONE NEEDED EXPLAINS GERARD KAISER A SENIOR VICE PRESIDENT THE DUPLICATION CAUSES QUALMS AT BOTH HOSPITALS IT'S TERRIBLE THAT THERE ARE TWO GAMMA KNIVES IN DADE COUNTY SAYS ALAN ROSENTHAL A JACKSON TRUSTEE THAT'S TWICE AS MANY AS WE NEED BUT IF YOU LOOK AT OUR FACILITIES I DON'T THINK ANY RESPONSIBLE PERSON WOULD SUGGEST THAT DOCTORS HOSPITAL SHOULD GET IT AND WE SHOULDN'T JACKSON OFFICIALS CITE THE WIDE RANGE OF HIGHTECH SERVICES THEY ALREADY PROVIDE INCLUDING HEART AND LIVER TRANSPLANTS DOCTORS HOSPITAL SAYS MARK COHEN A SPOKESMAN FOR JACKSON IS A COMMUNITY HOSPITAL THAT PROVIDES A LOT OF EXERCISE CLASSES FOR FAT LADIES IN THE MORNING DOCTORS OFFICIALS JAB BACK SAYING THEIR PROSPEROUS SUBURBAN ADDRESS WILL PULL IN A LOT OF PATIENTS UNEASY ABOUT JACKSON'S INNERCITY LOCATION SUCH RIVALRIES ARE GREAT FOR THE MAKER OF GAMMA KNIVES SINCE ELEKTA WENT PUBLIC IN EARLY MARCH IN SWEDEN ITS STOCK HAS SURGED NEARLY 30 ELEKTA ESTIMATES THAT REVENUE FOR THE YEAR ENDING APRIL 30 WILL BE UP 49 TO THE EQUIVALENT OF 64 MILLION WITH NET INCOME RISING EVEN MORE FOUR US COMPANIES NOW OFFER TO BUY GAMMA KNIVES AND INSTALL THEM IN HOSPITALS FREE IN RETURN FOR ABOUT 80 OF FUTURE PATIENT REVENUE JACKSON USED SUCH A DEAL MR ATKINS OF AMERICAN HEALTH SERVICES WHICH FINANCED DOZENS OF MAGNETICRESONANCEIMAGING MACHINES IN THE 1980S EXPECTS UP TO 50 GAMMA KNIVES TO BE INSTALLED EVENTUALLY IN THE US MOST GAMMA KNIVES CAN PAY THEIR WAY WITH JUST 100 PATIENTS A YEAR SAYS JERRY BROWN PRESIDENT OF ANOTHER FINANCING COMPANY US NEUROSURGICAL INC A UNIT OF GHS INC OF ROCKVILLE MD THAT MEANS USING EACH MACHINE AT LESS THAN 30 OF CAPACITY HE SAYS BUT WITH REIMBURSEMENT RATES USUALLY AT 15000 OR MORE PER PATIENT IT DOESN'T TAKE MANY THE PICTURE COULD DIM IF INSURERS BALKED AT COVERING GAMMA KNIFE SERVICES BUT SO FAR MOST HAVE BEEN WILLING TO PAY ESPECIALLY SINCE CASES TO DATE USUALLY HAVE INVOLVED BENIGN TUMORS OR BLOODVESSEL MALFORMATIONS WHERE GAMMA KNIFE TREATMENT IS AN ALTERNATIVE TO EVENCOSTLIER OPENSKULL SURGERY IT IS UNCLEAR WHAT WILL HAPPEN IF THE GAMMA KNIFE INSTEAD OF CHEAPER FORMS OF BRAIN RADIATION IS USED MORE OFTEN ON MALIGNANT TUMORS HOWARD LUNDY A JACKSON MEMORIAL BRAIN SURGEON SAYS HE HAS THOUGHT A LOT ABOUT THE ACCUSATION THAT THE GAMMA KNIFE REPRESENTS MEDICAL EXCESS BUT HE DOESN'T LET IT TROUBLE HIM PEOPLE WANT TO CRITICIZE US FOR HAVING TOO MUCH HIGHTECH MEDICINE DR LUNDY REMARKS BUT I DON'T HEAR PEOPLE COMPLAINING THAT THERE ARE TOO MANY BRANDS OF LIGHT BEER OR TOO MANY PRO ATHLETES MAYBE SOME OF THE CRITICISM ABOUT MEDICINE BEING OVERBUILT NEEDS TO BE TAKEN IN PERSPECTIVE OF ALL THE OTHER PARTS OF THE ECONOMY THAT ARE OVERBUILT TOO SEE RELATED LETTERS LETTERS TO THE EDITOR SURGERY'S POWERFUL NEW TOOL WSJ MAY 24 1994 9404200020 YY94 MM05 9405230096 940427 REVIEW & OUTLOOK EDITORIAL PRESIDENTS AND MONEY MEN AS THE COUNTRY TODAY OFFICIALLY MOURNS THE PASSING OF PRESIDENT RICHARD M NIXON OUR OWN THOUGHTS TURN TO A MORE TROUBLESOME ASPECT IN THE RECENT HISTORY OF AMERICAN PRESIDENTS THEIR RELATIONSHIPS WITH MEN OF MONEY THIS OF COURSE HAS BEEN A SUBTEXT FOR OUR EDITORIAL INTEREST IN THE FINANCIAL HISTORY OF PRESIDENT AND HILLARY CLINTON AND INDEED WE NOW READ THAT PRESIDENT CLINTON AND PRESIDENT NIXON HAD DEVELOPED A SPECIAL BOND OVER THE PAST YEAR IN HIS JUSTPUBLISHED BIOGRAPHY NIXON A LIFE JONATHAN AITKEN DESCRIBES THE FORMER PRESIDENT MEETING AT SAN CLEMENTE SOMETIME IN THE PERIOD AFTER HIS RESIGNATION WITH A HANDFUL OF INTERNATIONAL ENTREPRENEURS THEY MET TO DISCUSS THE EXTREME FINANCIAL STRAITS INTO WHICH MR NIXON HAD BEEN PUT BY COSTS ASSOCIATED WITH WATERGATE THE BILLS ALONE FOR HIS LAWYERS WERE 750000 CONGRESS HAD REDUCED HIS ANNUAL OFFICE EXPENSES AND THE NEW YORK BAR ASSOCIATION HAD DISBARRED HIM BY EARLY 1976 HE HAD A BANK ACCOUNT OF 500 THE SAN CLEMENTE GROUP INCLUDED SIR JAMES GOLDSMITH SAUDI ARABIAN ADNAN KHASHOGGI ARDESHIR ZAHEDI OF IRAN AND OMAR ZAWAWI OF OMAN THE CONCEPT WAS THAT MR NIXON WOULD GENERATE PERSONAL INCOME BY ACTING AS A RAINMAKER FOR INTERNATIONAL BUSINESS DEALS THE AITKEN BOOK SAYS THIS ASSOCIATION BEGAN TO BEAR FRUIT IN EARLY 1978 WITH THE RESULT THAT SIZABLE COMMISSIONS WERE PAID INTO THE SILENT PARTNER'S' BANK ACCOUNT AT THE BANK OF KEY BISCAYNE IT SHOULD BE NOTED THAT MR NIXON ALSO BECAME A FINANCIALLY SUCCESSFUL AUTHOR AND THAT OTHER FORMER PRESIDENTS HAVE BEEN CRITICIZED ON FINANCIAL ISSUES RONALD REAGAN WAS STOUTLY CRITICIZED FOR ACCEPTING 2 MILLION IN 1989 FROM FUJISANKEI CORP FOR APPEARANCES IN JAPAN THEN THERE IS THE MYSTERIOUS ASSOCIATION BETWEEN JIMMY CARTER AND THE BANK OF CREDIT & COMMERCE INTERNATIONAL OR BCCI BERT LANCE WHO WAS BUDGET DIRECTOR IN THE CARTER ADMINISTRATION INTRODUCED THE FORMER PRESIDENT TO BCCI'S FOUNDER AND PERPETRATOR AGHA HASAN ABEDI EVENTUALLY BCCI WHICH IS TO SAY ABEDI BECAME A CONTRIBUTOR TO MR CARTER'S CHARITABLE FOUNDATION ABEDI'S TRAIL OF COURSE RAN THROUGH MINISTRIES AND CENTRAL BANKS ALL OVER THE GLOBE THE US POLITICAL CULTURE HAS NEVER BEEN ABLE TO QUITE COME TO GRIPS WITH THE SCOPE OR IMPLICATIONS OF THIS BEHAVIOR WHICH MIGHT BE CALLED A GLOBAL GRAY MARKET IN POLITICAL INFLUENCE ELECTED AND APPOINTED PUBLIC OFFICIALS GO TO WORK WITH NO GREATER OR LESSER MORAL STRENGTHS THAN MERE CITIZENS BUT UNLIKE PRIVATE CITIZENS THEY HOLD THE AUTHORITY TO AWARD HUGELY BENEFICIAL CONTRACTS AND LICENSES TO SOMEONE IT WAS EVER THUS TODAY HOWEVER WINNING IN THESE NOTVERYCOMPETITIVE DECISIONS IS WORTH VAST AMOUNTS AS SUCH THE COMMISSION RISES FOR BEING ABLE TO PROVIDE ACCESS TO HEADS OF STATE BANKING AUTHORITIES OR EVEN A GOVERNOR TURNED PRESIDENT WE DON'T THINK THIS IS HOW MOST AMERICANS WANT FORMER PRESIDENTS TO PROVIDE FOR THEMSELVES AND THEY CERTAINLY DON'T WANT THEIR ACTIONS IN OFFICE TO BE SWAYED BY THOUGHTS OF PROTECTING THEMSELVES FROM ENDING UP WITH 500 IN THE BANK WITH DUE RESPECT FOR THE PUBLIC'S UNWILLINGNESS TO SEE HIGH PAY FOR POLITICIANS WE OUGHT TO BE THINKING OF A BETTER WAY SEE RELATED LETTER LETTERS TO THE EDITOR KHASHOGGI DENIAL WSJ MAY 23 1994 9404270059 YY94 MM05 9405190136 940408 REVIEW & OUTLOOK EDITORIAL WRIGHT WRONGED WHILE THE MUSEUM OF MODERN ART IN NEW YORK CITY IS CELEBRATING THE 125TH ANNIVERSARY OF FRANK LLOYD WRIGHT'S BIRTH WITH AN IMPRESSIVE EXHIBITION ANOTHER MUSEUM IS BUSILY CHISELING AWAY AT THE ONE IMPORTANT BUILDING HE CREATED IN NEW YORK THE SOLOMON R GUGGENHEIM MUSEUM FINISHED IN 1959 THE GRANDLY ECCENTRIC STRUCTURE WITH ITS SWIRLING ROTUNDA HAS BEEN ONE OF THE CITY'S WORLDRENOWN MONUMENTS BUT UNDER THE DIRECTORSHIP OF THOMAS KRENS THE MUSEUM BOARD HAS BECOME ASTONISHINGLY BLITHE ABOUT ITS STEWARDSHIP OF THIS REMARKABLE LANDMARK AND INCREASINGLY OBSESSED WITH ERECTING MINIGUGGENHEIMS THE WORLD OVER INCLUDING SALZBURG WHICH HAS SO FAR REJECTED ITS ADVANCES ONLY TWO YEARS AGO A 10STORY TOWER OF GREAT BANALITY BY THE GWATHMEYSIEGEL FIRM AROSE BEHIND WRIGHT'S INVERTED ZIGGURAT TO HOUSE THE COLLECTION AND NEW OFFICES SINCE THE MUSEUM STEADFASTLY REFUSED TO ENTERTAIN SUBTLER SOLUTIONS IT WOULDN'T DIG UNDERGROUND OR BUY A NEARBY BUILDING NOR DID IT STOP REFUSING THE PILES OF MEDIOCRE ART IT RECEIVES AS TAX DEDUCTIONS BY CAGEY COLLECTORS BUT SUBTLETY IS NOT A FAVORED WORD HERE NOW THE MUSEUM IS TRYING TO PLASTER THE NAMES OF PATRONS ALL OVER THE OUTSIDE OF ITS RECENTLY CLEANED BUILDING ONLY THE PROSPECT OF A ZONING BATTLE DERAILED PLANS TO PUBLICLY THANK ONE LARGE DONOR WITH HIS NAME IN BIG LETTERS ON THE UGLY ADDITION WRIGHT'S FAMED ROTUNDA ON FIFTH AVENUE WHICH REQUIRES ONLY PERMISSION FROM THE LANDMARKS COMMISSION FOR EMBELLISHMENT OR EMBLIGHTMENT IS STILL IN PLAY IT IS HERE THAT REAL ESTATE DEVELOPER SAMUEL LEFRAK WISHES TO SEE HIS NAME IN RETURN FOR GIVING THE GUGGENHEIM 10 MILLION SOON THE COMMISSION WILL VOTE ON WHETHER WRIGHT'S ROTUNDA CAN BE EMBLAZONED WITH A SIGN DECLARING IT THE LEFRAK ROTUNDA REDUCED IN VERBOSITY FROM THE ORIGINALLY REQUESTED THE SAMUEL J AND ETHEL LEFRAK ROTUNDA ALREADY IT'S COMMON PRACTICE THROUGH THE MUSEUM WORLD TO EMBLAZON INTERIOR GALLERIES WITH THE NAMES OF BENEFACTORS THERE'S NOTHING REALLY WRONG WITH THAT THOUGH IT'S INTERESTING TO NOTE HOW BIG THOSE LETTERS ARE QUITE DIFFERENT FROM THE DISCRETE FRAME TAGS FAVORED DECADES AGO BY ART PATRON MRS HAVEMEYER BUT WHAT'S NEXT WILL EVERY COLUMN OUTSIDE THE METROPOLITAN FOR INSTANCE SOON BE FESTOONED WITH THE NAMES OF PATRONS WITH THE LARGEST EGOS AND CHECKS IT WAS SOLOMON GUGGENHEIM WHO HAD THE GUTS AND VISION TO HIRE A GREAT ARCHITECT FOR HIS MUSEUM THE MONUMENT TO HIS ACHIEVEMENT SHOULDN'T BE CLUTTERED FOREVER BY ADVERTISEMENTS FOR THE CHECKWRITERS SEE RELATED LETTER LETTERS TO THE EDITOR GUGGENHEIM DEFENDS RECENT DEVELOPMENTS WSJ MAY 19 1994 9404080149 YY94 MM05 9405180140 940427 REVIEW & OUTLOOK EDITORIAL FOOD & HYSTERIA REMEMBER THE DISCREDITED CAMPAIGN TO TERRIFY THE PUBLIC ABOUT ALAR AND APPLES THE SAME KIND OF SCAREMONGERING IS NOW BEING WHIPPED UP AROUND THE ISSUE OF FOOD IRRADIATION WHICH SOUNDS SCARY BUT ISN'T FOOD IS TYPICALLY IRRADIATED BY EXPOSING IT TO LOWLEVEL GAMMA RAYS IN A SPECIALLY BUILT CHAMBER FOR UP TO AN HOUR ZAPPING A CHICKEN OR A TOMATO DOESN'T MAKE IT RADIOACTIVE ANY MORE THAN BEING XRAYED MAKES YOUR TEETH GLOW IT DOES KILL LOTS OF BACTERIA AND INSECT PESTS EXTENDS A PRODUCT'S SHELF LIFE AND SPARES THE PUBLIC FROM ALL SORTS OF FOODBORNE DISEASES THE NEED FOR SOMETHING OF THIS SORT IS OBVIOUS GIVEN THE RECENT E COLI OUTBREAK AT FASTFOOD RESTAURANTS IN WASHINGTON STATE THAT KILLED AT LEAST ONE CHILD AND INJURED 100 TRADITIONAL FOOD INSPECTION METHODS A FEW BUREAUCRATS WANDERING AROUND A GIANT SLAUGHTERHOUSE DON'T DO THE JOB THIRTYSEVEN COUNTRIES ALREADY HAVE APPROVED FOOD IRRADIATION IN SOME OF THEM FOOD HAS BEEN ZAPPED SINCE THE 1950S WITH NOTHING BUT POSITIVE EFFECTS THE WORLD HEALTH ORGANIZATION THE AMERICAN MEDICAL ASSOCIATION AND EVERY REPUTABLE SCIENTIST WHO'S STUDIED IRRADIATION HAS GIVEN IT A CLEAN BILL OF HEALTH IN THE US THE FOOD AND DRUG ADMINISTRATION HAS APPROVED IRRADIATION FOR MANY SPICES VEGETABLES FRUITS AND POULTRY AND WITH STRONG SUPPORT FROM AGRICULTURE SECRETARY MIKE ESPY THE FDA NOW APPEARS SET TO APPROVE BEEF IRRADIATION TWO STATES NEW YORK AND MAINE BAN IRRADIATION BUT NEW JERSEY WHICH USED TO BAN IT HAS SWITCHED COURSE AND AN ATTEMPT TO KEEP IRRADIATION OUT OF MASSACHUSETTS WAS QUASHED BY THE STATE LEGISLATURE IN EARLY APRIL SO WHY AREN'T AMERICAN CONSUMERS ROUTINELY BUYING STRAWBERRIES THAT STAY FRESH FOR A MONTH OR CHICKEN THAT DOESN'T SPOIL EASILY THE ANSWER ISN'T CONSUMER RESISTANCE AT A CHICAGOAREA SUPERMARKET THAT STOCKS IRRADIATED PRODUCTS SALES HAVE BEEN BRISK STILL NO MAJOR SUPERMARKET CHAIN IS WILLING TO STOCK IRRADIATED FOOD AND NO MAJOR POULTRY PRODUCER IS WILLING TO TREAT ITS BIRDS THE INDUSTRY SEEMS TO BE COWED BY THE HARDBALL TACTICS OF AN OUTFIT CALLING ITSELF FOOD & WATER THE TINY GROUP MEMBERSHIP 3500 PRODUCES A STEADY STREAM OF TSHIRTS AND LEAFLETS CLAIMING THAT FOOD IRRADIATION IS PART OF A CONSPIRACY BY THE CIA AND THE PENTAGON TO FOIST OFF NUCLEAR WASTES ON AN UNSUSPECTING PUBLIC EVEN THOUGH MOST IRRADIATION PLANTS USE COBALT60 WHICH HAS NO CONNECTION TO NUCLEAR WASTE FOOD & WATER HAS ALSO PAID FOR RADIO AND NEWSPAPER ADS THAT WARN DARKLY OF CARCINOGENIC RISKS AND OUTRAGEOUSLY COMPARE IRRADIATION WITH PLUTONIUMINJECTION EXPERIMENTS IN THE 1940S THE GROUP HAS MAILED THREATENING LETTERS TO 15000 FOOD INDUSTRY EXECUTIVES CLAIMING THAT IRRADIATION WILL BE ECONOMICALLY DISASTROUS FOR THEM THE FOUNDER OF FOOD & WATER IS WALTER BURNSTEIN A NEW JERSEY DOCTOR HIS SONINLAW MICHAEL COLBY LEADS THE GROUP NOW MR COLBY IS A UNIVERSITY OF IOWA DROPOUT WHO MAJORED IN JOURNALISM AND HE'S A LITTLE TOUCHY ABOUT HIS LACK OF SCIENTIFIC CREDENTIALS AFTER TALKING WITH US HE CALLED BACK THE FOLLOWING DAY TO PROCLAIM THAT IT'S CLEARLY IRRELEVANT AND THAT RALPH NADER ISN'T A SCIENTIST EITHER OUR POINT PRECISELY MR COLBY THEN FAXED US A LIST OF SIX SCIENTISTS WE COULDN'T REACH TWO OF THEM BUT WE DID TALK TO THE OTHER FOUR TURNS OUT ALL ARE LONGTIME ANTINUCLEAR ACTIVISTS NONE HAS EVER CONDUCTED ANY RESEARCH ON FOOD IRRADIATION ONE DR DONALD LURIA OF THE NEW JERSEY SCHOOL OF MEDICINE ACTUALLY CONTRADICTED SOME OF FOOD & WATER'S CLAIMS DR LURIA TOLD US THAT IRRADIATION HAS SOME OBVIOUS POTENTIAL BENEFITS AND THAT THERE ARE NO STUDIES TO BACK UP THE GROUP'S CLAIMS THAT IT CAN CAUSE CANCER HE DID ADD HOWEVER THAT HE'D LIKE TO SEE MORE TESTS CONDUCTED WHICH OTHER SCIENTISTS SAY WOULD BE SUPERFLUOUS IN LIGHT OF FOUR DECADES OF RESEARCH HOW DOES A GROUP SO LACKING IN SCIENTIFIC LEGITIMACY STAY IN BUSINESS MR COLBY SAYS HIS ANNUAL BUDGET IS 500000 BUT HE REFUSES TO RELEASE HIS FINANCIAL RECORDS EVEN THOUGH FOOD & WATER IS EFFECTIVELY SUBSIDIZED BY THE TAXPAYERS BECAUSE OF ITS 501C3 TAXEXEMPT STATUS BUT FOLLOWING UP ON SOME SLEUTHING BY THE LAKELAND FLA LEDGER WE DISCOVERED THAT FOOD & WATER LIKE MANY ACTIVIST GROUPS IS BANKROLLED BY SOME VERY RESPECTABLE FOUNDATIONS IRONICALLY ITS BIGGEST CONTRIBUTOR IS THE MARY REYNOLDS BABCOCK FOUNDATION SET UP WITH MONEY FROM TOBACCO WHICH IS A FAR WORSE HEALTH HAZARD THAN IRRADIATION WE WONDER IF THE TRUSTEES OF THE FOUNDATIONS LISTED BELOW ARE AWARE OF WHAT THEIR MONEY IS PAYING FOR OUR EXPERIENCE HAS BEEN THAT AS PUBLIC KNOWLEDGE SPREADS THANKS IN PART TO REPORTS LIKE JOHN STOSSEL'S ARE WE SCARING OURSELVES TO DEATH ON ABC LAST WEEK THE UNSUBSTANTIATED CLAIMS OF A FOOD & WATER GET DISCOUNTED IN THE MARKETPLACE OF IDEAS UNTIL THAT HAPPENS THEY CAN CAUSE AN AWFUL LOT OF DAMAGE THE FOLLOWING FOUNDATIONS HAVE PROVIDED SIGNIFICANT FINANCIAL SUPPORT FOR FOOD & WATER EDUCATIONAL FOUNDATION OF AMERICA WESTPORT CONN MAX AND ANNA LEVINSON FOUNDATION SANTA FE NM SEE RELATED LETTERS LETTERS TO THE EDITOR IS FOOD IRRADIATION A ROTTEN IDEA WSJ APRIL 27 1994 9404270054 YY94 MM05 9405180117 940427 TEXAS JOURNAL LETTER TO THE EDITOR WORKERS' COMP COMPETENCE NEEDED REGARDING YOUR JAN 19 ARTICLE ON WORKERS' COMPENSATION REFORMS WORKERS' COMP DID THE REFORMS HELP THE ARTICLE WAS GOOD BUT IT FAILED TO ADDRESS A COUPLE OF CRUCIAL AREAS WHAT MAKES CUSTOMERS' PREMIUMS SO HIGH UNSKILLED UNTRAINED AND UNQUALIFIED PEOPLE IN THE WORKERS' COMPENSATION COMMISSION UNSKILLED ADJUSTERS AND EXAGGERATION AND FRAUD BY EMPLOYEES AND DOCTORS CONTRIBUTE TO THE HIGH PREMIUMS EMPLOYERS THAT I WORK WITH AS AN INSURANCE ADJUSTER COMPLAIN MORE ABOUT THE ATTITUDE AND DECISIONS OF THE WORKERS' COMPENSATION COMMISSION AND ADJUSTERS THAN ABOUT THE PREMIUMS ADJUSTERS HOWEVER ARE REQUIRED TO BE LICENSED TO MAINTAIN THEIR LICENSES AND TO HAVE A MINIMUM OF 15 HOURS OF CONTINUING EDUCATION EACH YEAR WE ARE ACCOUNTABLE TO THE DEPARTMENT OF INSURANCE FOR OUR ACTIONS OR INACTIONS COMMISSION EMPLOYEES ARE NOT ACCOUNTABLE TO ANYONE FOR THEIR MISTAKES AND MISJUDGMENTS APPARENTLY NO PREVIOUS EXPERIENCE IN LAW INSURANCE INVESTIGATION ETC IS REQUIRED BUT THE STATE FEELS THESE INDIVIDUALS ARE QUALIFIED TO INTERPRET LAW INSURANCE CONTRACTS AND COVERAGE EVALUATE FACTS AND RENDER FAIR DECISIONS BUT THESE DECISIONS ARE RENDERED 150 FOR THE BENEFIT OF THE EMPLOYEE REGARDLESS OF EVIDENCE ANOTHER COMPLAINT IS ABOUT THE WORKERS' COMP SYSTEM'S FRAUD UNIT WE HAVE HANDLED SEVERAL THOUSAND WORKERS' COMP CASES IN OUR OFFICE OVER THE PAST THREE YEARS AND AS FAR AS I KNOW THERE HAS NOT BEEN ONE SINGLE FRAUD INDICTMENT BUT ANYONE WHO THINKS THERE IS NO FRAUD IN WORKERS' COMP REALLY DOES HAVE HIS HEAD IN THE SAND THE INSURANCE CARRIER HAS NO LEVERAGE WE HAVE NO SAY IN WHICH DOCTOR IS USED OR HOW MANY TIMES A PERSON CAN CHANGE DOCTORS WE CAN'T STOP THE WEEKLY BENEFITS WITHOUT PERMISSION FROM THE WORKERS' COMPENSATION COMMISSION WE ARE ENTITLED TO A BENEFIT REVIEW HEARING AND INDEPENDENT MEDICAL EXAMINATIONS HOWEVER THESE ARE BEING DENIED IN SOME SITUATIONS THIS VIOLATES OUR RIGHTS UNDER THE STATUTE WE HAVE NO RECOURSE OTHER THAN TO KEEP TRYING AND INCUR LEGAL EXPENSES DON'T GET ME WRONG I THINK THIS WOULD BE A GOOD SYSTEM IF IT WERE ADMINISTERED BY QUALIFIED TRAINED ACCOUNTABLE IMPARTIAL AND LICENSED PEOPLE YOU AREN'T SUPPOSED TO PRACTICE LAW WITHOUT BEING LICENSED AND HAVING PASSED THE BAR EXAM THESE PEOPLE DO SEE RELATED LETTER TEXAS JOURNAL LETTERS TO THE EDITOR WORKERS' COMP BEWARE OF SOLUTIONS WSJ MAY 18 1994 9404270020 YY94 MM05 9405180078 940419 REVIEW & OUTLOOK EDITORIAL ASIDES PROJECTS' HOPE PRESIDENT CLINTON THIS WEEKEND ANNOUNCED A PLAN TO ALLOW WARRANTLESS SEARCHES IN DRUG AND VIOLENCESATURATED PUBLIC HOUSING PROJECTS AS TO RIGHTS THE PRESIDENT SPOKE ELOQUENTLY TO THAT THEY INCLUDE THE RIGHT TO GO OUT TO THE PLAYGROUND THE RIGHT TO GO TO SCHOOL SAFELY IN THE MORNING AND THE RIGHT TO CELEBRATE YOUR 10TH BIRTHDAY WITHOUT COMING HOME TO BLOODSHED AND TERROR IT MAY BE HOPED THAT THE PRESIDENT'S JUDICIAL NOMINEES WILL SHARE THAT UNDERSTANDING OF RIGHTS IN A CIVIL SOCIETY SEE RELATED LETTER LETTERS TO THE EDITOR A BAD TRADE WSJ MAY 18 1994 9404190030 YY94 MM05 9405180068 940422 FANCY FOOTWORK BANKERS TRUST THRIVES PITCHING DERIVATIVES BUT CLIMATE IS SHIFTING LOSSES BY CLIENTS LIKE P&G MAY CRIMP PLAN TO MOVE TO RELATIONSHIP BANKING SOME INTENSE PRESSURE TO SELL BY WALL STREET JOURNAL STAFF REPORTERS STEVEN LIPIN BARBARA DONNELLY GRANITO AND LESLIE SCISM THE FOLKS AT BANKERS TRUST NEW YORK CORP HAVEN'T BEEN BANKERS IN THE CLASSIC SENSE FOR YEARS AND NOW SOME CORPORATE EXECUTIVES ARE BEGINNING TO WONDER HOW MUCH THEY CAN TRUST THEM IN JUST TWO WEEKS THREE COMPANIES THAT BOUGHT SOPHISTICATED FINANCIALDERIVATIVE PRODUCTS FROM BANKERS TRUST HAVE HAD TO REPORT BIG WRITEOFFS AS THOSE INVESTMENTS WERE TORPEDOED BY RISING INTEREST RATES TWO PROCTER & GAMBLE CO AND GIBSON GREETINGS INC HAVE TAKEN THE RARE STEP OF PUBLICLY CRITICIZING THEIR BANKER THE THIRD MEAD CORP IS TAKING ITS LUMPS QUIETLY FOR NOW IT ISN'T YET CLEAR WHETHER THE CORPORATE EXECUTIVES INVOLVED WERE WILLINGLY TAKING BIG RISKS TO EARN BIG REWARDS WERE INDUCED BY BANKERS TRUST SALESPEOPLE TO BUY PRODUCTS THEY DIDN'T FULLY UNDERSTANDOR A LITTLE OF EACH WHAT IS CLEAR FROM INTERVIEWS WITH FORMER BANKERS TRUST EXECUTIVES AND WITH CORPORATE TREASURERS AND OTHER FINANCIAL OFFICIALS IS THAT BANKERS TRUST HAS BEEN UNUSUALLY AGGRESSIVE IN SELLING THE PRODUCTS AS WELL AS IN USING THEM TO ITS OWN ADVANTAGE EVEN IF THIS TURNED OUT TO BE AT THE EXPENSE OF ITS CLIENTS PEOPLE CLOSE TO THE BANK SAY THAT ITS TAKENOPRISONERS APPROACH HAS DRIVEN AWAY AT LEAST A DOZEN AMBITIOUS EMPLOYEES WHO GREW UNCOMFORTABLE WITH THAT STYLE IT'S A TOUGH CULTURE IF THEY FIND A WEAKNESS THEY'LL EXPLOIT IT SAYS A FORMER BANKERS TRUST OFFICIAL WHO LEFT TO RUN A DERIVATIVES OPERATIONS FOR A RIVAL BANK IF YOU LOOK AROUND AT THE STREET YOU FIND A LOT OF EXBANKERS TRUST PEOPLE SAYS J THOMAS ALLEN PRESIDENT OF ADVANCED INVESTMENT MANAGEMENT A PITTSBURGHBASED FIRM THAT MANAGES 35 BILLION THROUGH DERIVATIVES OF COURSE BANKERS TRUST ISN'T THE ONLY BIG INVESTMENT FIRM PEDDLING SOPHISTICATED DERIVATIVE PRODUCTS TO CORPORATE AMERICA IN A RECENT REGULATORY FILING DELL COMPUTER CORP SAID IT SUFFERED A 500000 PAPER LOSS ON A DERIVATIVE TRANSACTION THE COMPANY SAYS BANKERS TRUST WASN'T INVOLVED DELL ALSO WARNS THAT IT COULD TAKE FURTHER PAPER LOSSES ON DERIVATIVES DURING ITS CURRENT FIRST FISCAL QUARTER ENDING MAY 1 LOSSES THAT SOME ANALYSTS PROJECT AT BETWEEN 5 MILLION AND 15 MILLION IN ADDITION SENIOR CONSULTANTS AT BIG ACCOUNTING FIRMS WARN THAT SOME OF THEIR OTHER CORPORATE CLIENTS SOON WILL BE REPORTING DERIVATIVESRELATED LOSSES TOO THE RESULT OF PRODUCTS SOLD BY SOME OF BANKERS TRUST'S BIGGEST RIVALS BUT BANKERS TRUST IS FAR MORE DEPENDENT UPON THE SALE AND TRADING OF DERIVATIVE PRODUCTS THAN ANY OTHER US FINANCIAL INSTITUTION OVER THE PAST DECADE IT HAS BECOME A DERIVATIVES JUGGERNAUT CONSTANTLY STRIVING TO CREATE SOPHISTICATED NEW PRODUCTS ON WHICH IT CAN EARN BIG FEES OR TRADING PROFITS LAST YEAR 31 OF ITS BOTTOM LINE WAS THE RESULT OF SELLING RISKMANAGEMENT PRODUCTS WHILE A HEFTY 56 CAME FROM TRADING FOR ITS OWN ACCOUNT AND IN THE FIRST QUARTER OF 1994 PROFIT FROM THE SALE OF DERIVATIVES TO CLIENTS CLIMBED TO 114 MILLION ACCOUNTING FOR 70 OF EARNINGS THE BANK'S ABILITY TO STAY ON THE CUTTING EDGE OF FINANCIAL INNOVATION EARNS IT THE HIGHEST ACCOLADES FROM SOME FINANCIAL EXECUTIVES THEY'RE EXTREMELY INNOVATIVE AND EXTREMELY AGGRESSIVE SAYS MICHAEL FLAGG FORMER TREASURER OF AM INTERNATIONAL YOU COULD SIT DOWN WITH THEM AND SAY I WANT TO HEDGE A RISK OF HAVING TOO MANY BLUE GIRAFFES' AND THEY WOULD BE ABLE TO HELP YOU DO THAT BANKERS TRUST OFFICIALS SAY THAT THE BLOWUPS AT THREE COMPANIES THAT BOUGHT PRODUCTS FROM BANKERS TRUST ARE ISOLATED INCIDENTS THAT DON'T REFLECT THE VAST MAJORITY OF CLIENTS THAT USE DERIVATIVES DOUG KIDD A MANAGING DIRECTOR AT BANKERS TRUST SAYS WE BELIEVE WE'VE ACTED COMPLETELY ETHICALLY HONESTLY AND WITH THE HIGHEST STANDARDS OF PROFESSIONALISM STILL THE CLIENTS' WELLPUBLICIZED LOSSES AND THE LIKELIHOOD THAT MORE WILL BE FORTHCOMING THREATEN AT THE VERY LEAST TO UNDERMINE BANKERS TRUST'S EFFORTS TO REBUILD THE CORPORATE RELATIONSHIPS IT ABANDONED YEARS AGO WE BELIEVE THERE WILL BE A SLOWDOWN AS CLIENT POLICIES TIGHTEN TIMOTHY YATES THE BANK'S CHIEF FINANCIAL OFFICER SAID EARLIER THIS WEEK BUT IN THE LONG TERM WE SEE THAT AS GOOD BEYOND THE IMMEDIATE EFFECTS ON BANKERS TRUST'S PROFITS AND REVENUE THE PROBLEMS THAT ARE CROPPING UP THREATEN TO SLOW THE GROWTH OF THE ENTIRE DERIVATIVES BUSINESS INCLUDING THE STANDARD RISKMANAGEMENT PRODUCTS ON WHICH MANY CORPORATIONS PENSION FUNDS AND EVEN CREDIT UNIONS ROUTINELY RELY WHAT'S MORE THE PROBLEMS OPEN NEW DOORS FOR NERVOUS REGULATORS AND AMBITIOUS LEGISLATORS WHO ALREADY ARE MOVING TO CRACK DOWN ON MORE EXOTIC DERIVATIVES AND THE PROPRIETARY TRADING OF FINANCIAL INSTRUMENTS BY US BANKS IT IS BAD FOR EVERYBODY SAYS AN EXECUTIVE AT ONE OF THE LEADING DEALERS BANKERS TRUST EXECUTIVES CONCLUDED AS EARLY AS 1979 THAT TRADITIONAL COMMERCIAL BANKING WAS A DYING BUSINESS FRAUGHT WITH TOO MANY COMPETITORS FIGHTING OVER A SHRINKING COMMERCIAL LOAN PIE LED BY ITS CHAIRMAN CHARLES SANFORD A FORMER BOND TRADER FROM GEORGIA BANKERS TRUST HAD THE VISION TO INVEST HEAVILY IN CAPITAL MARKETS WHEN SOME OTHER BANKS WERE TRYING TO BE ALL THINGS TO ALL PEOPLE IN EFFECT FINANCIAL SUPERMARKETS TODAY THAT EARLY THRUST INTO THE WORLD OF DERIVATIVES SEEMS ESPECIALLY PRESCIENT AS COMPETITORS HAVE HAD TO SCRAMBLE TO CATCH UP BANKERS TRUST'S STRENGTH AS A FINANCIAL INNOVATOR LIES IN ITS ABILITY TO ATTRACT THE BEST AND BRIGHTEST AMONG THE MATHEMATICS WIZARDS COMING OUT OF TOP SCHOOLS LIKE MASSACHUSETTS INSTITUTE OF TECHNOLOGY AND THE WHARTON SCHOOL AT UNIVERSITY OF PENNSYLVANIA THOSE ROCKET SCIENTISTS ARE PUT TO WORK DEVISING FORMULAS FOR CREATING CUSTOMIZED SWAPS AND COMPLEX OPTION PRODUCTS IN THEIR SIMPLEST AND SAFEST USE SWAPS AND OPTIONS GIVE BUYERS FINANCIAL PROTECTION AGAINST ADVERSE MOVES IN SUCH THINGS AS INTEREST RATES OR FOREIGN CURRENCIES FOR EXAMPLE BERTELSMANN INC THE US SUBSIDIARY OF THE GERMAN MEDIA GIANT LAST YEAR PURCHASED AN INTERESTRATE OPTION CALLED A CAP THAT IN EFFECT SET A CEILING ON THE COST OF FINANCING THE 119 MILLION PURCHASE OF A BUILDING IN NEW YORK IF INTEREST RATES RISE ABOVE A CERTAIN LEVEL THE COMPANY'S FINANCING NEEDS BECOME FIXED AT A SET RATE WE WANTED PEACE OF MIND SAYS BASIL MAVROVITIS BERTELSMANN'S TREASURER BUT THOSE KINDS OF DEALS CARRY SCANT PROFITS FOR THE BANKS AND SECURITIES FIRMS THAT SELL THEM ALTHOUGH BANKERS TRUST DOES PLENTY OF THIS WORK ITS REAL EXPERTISE LIES IN THE AREA OF EXOTIC PRODUCTS SUCH AS LEVERAGED SWAPS THESE PRODUCTS DIFFER FROM PLAINVANILLA DERIVATIVES IN THAT THEY ALLOW THE BUYER TO MAKE VERY SPECIFIC BETS ON THINGS LIKE THE DIFFERENCE BETWEEN SHORTTERM AND LONGTERM INTEREST RATES THE TROUBLE IS THEY ARE A PARTICULARLY VOLATILE FORM OF DERIVATIVE AND THE RETURNS OR LOSSES IF THE BET IS WRONG ARE GREATLY MAGNIFIED THE APPEAL OF SUCH EXOTIC INSTRUMENTS TO BANKERS TRUST IS THAT IT TAKES A CERTAIN AMOUNT OF EXPERTISE TO CRAFT THEM SO NOT EVERY FINANCIAL FIRM CAN COMPETE FURTHER THEY TEND TO BE MUCH MORE PROFITABLE FOR EXAMPLE THE PROFIT FOR THE SELLER ON A TYPICAL LEVERAGED SWAP RUNS ABOUT EIGHT TIMES THE LEVEL OF A TRADITIONAL INTERESTRATE SWAP THE MORE COMPLEX AND CUSTOMIZED THE PRODUCT BECOMES THE HIGHER THE FEES THE BANK CAN COMMAND EVERY BANK OF ANY SIZE WANTS TO SELL EXOTIC DERIVATIVES TO A CORPORATION SAYS CHRISTOPHER SAILER TREASURER OF BROWNFORMAN CORP A LOUISVILLE KY DISTILLER THEY BASICALLY WILL PROMOTE IT WITH WHATEVER REASONING A TREASURER WILL ACCEPT THEY'RE THERE TO GENERATE TRANSACTION FEES AND THE WAY TO DO IT IS THROUGH SALES HE SAYS THAT BROWNFORMAN HASN'T DONE DERIVATIVES BUSINESS WITH BANKERS TRUST AND DOESN'T USE LEVERAGED SWAPS BANKERS TRUST'S TIGHT FOCUS ON DERIVATIVES DURING THE LAST DECADE MADE IT THE LEADER IN THE FIELD BUT THAT CAME AT THE EXPENSE OF THE KIND OF BROADBASED INVESTMENTBANKING BUSINESS THAT FIRMS LIKE JP MORGAN & CO AND GOLDMAN SACHS & CO ARE KNOWN FOR NOT ONLY DOES THE BROADER BUSINESS PROVIDE A DIVERSIFIED STREAM OF EARNINGS IT ALSO ENCOURAGES DEEP RELATIONS BETWEEN THE FIRMS AND THEIR CLIENTS THE LACK OF THOSE RELATIONSHIPS IS SOMETHING THAT BANKERS TRUST SET OUT TO REMEDY IN THE PAST COUPLE OF YEARS BUT THE LATEST IMBROGLIO SUGGESTS THAT IT MAY HAVE A HARD TIME ACHIEVING THIS GOAL IF WE START TO SEE THINGS OF THIS MAGNITUDE WITH MORE REGULARITY IT WOULD BE WORRISOME BECAUSE ONE MAJOR STRATEGIC INITIATIVE WAS TO REBUILD THEIR CORPORATECUSTOMER BASE SAYS JUDAH KRAUSHAAR BANKING ANALYST AT MERRILL LYNCH & CO A MAJOR LEG OF THEIR STRATEGY COULD BE IN JEOPARDY HE AND OTHERS ARGUE THAT THE BANK'S STRATEGY IS TO USE ITS DERIVATIVES BUSINESS AS A LEVER INTO THE REST OF THE CLIENTCOMPANY'S FINANCIAL NEEDS DERIVATIVES AND RISK MANAGEMENT ARE THEIR COMPETITIVE ADVANTAGES SAYS MR KRAUSHAAR THEY STILL HAVE A LONG WAY TO GO TO CATCH UP WITH OTHER LARGE COMMERCIAL BANKS IN TERMS OF DEPTHS OF RELATIONSHIPS BUT I WOULD STOP WAY SHORT OF CONCLUDING THAT IT SUFFERED AN IRREVERSIBLE SETBACK BUT OTHER MAJOR BANKS AREN'T LOSING ANY TIME IN TAKING ADVANTAGE OF BANKERS TRUST'S WOES SOME NEW YORK BANKS AND SECURITIES FIRMS ARE SENDING OUT LETTERS TO THEIR CORPORATE CLIENTS SAYING THEY DON'T SELL LEVERAGED SWAPS TO CORPORATIONS I THINK BANKERS WILL PROBABLY SEE SOME EROSION SAYS RAPHAEL SOIFER BANKING ANALYST AT BROWN BROTHERS HARRIMAN & CO BANKERS TRUST MIGHT BE MORE VULNERABLE THAN SOME OF THE OTHER BANKS BECAUSE THEY DON'T HAVE AS MANY DEEP BANKING RELATIONSHIPS AS SAY JP MORGAN DOES HE ADDS HOWEVER THAT HE BELIEVES CORPORATE TREASURERS WILL BE REVIEWING THEIR FINANCIAL RELATIONSHIPS WITH ALL DEALERS IN LIGHT OF THE EVENTS OF THE PAST FEW WEEKS FORMER BANKERS TRUST EXECUTIVES SUGGEST THAT THE BIG BANK'S INTERNAL CULTURE HAS CONTRIBUTED TO ITS LACK OF STRONG CLIENT RELATIONSHIPS THE HARDNOSED TRADING CULTURE THAT DEVELOPED OVER THE PAST DECADE AT BANKERS TRUST WAS GEARED TO EXPLOITING SHORTTERM MARKET OPPORTUNITIES AS THEY AROSE THAT MARKET SAVVY AND APPETITE FOR RISK WORK HEAVILY IN BANKERS TRUST'S FAVOR WHEN IT COMES TO MAKING DECISIONS ABOUT ITS OWN PROFITS OR THOSE OF CLIENTS KNOWLEDGE IS POWER SAYS MR ALLEN OF ADVANCED INVESTMENT MANAGEMENT THESE GUYS SEE THE WHOLE MARKET MINUTE BY MINUTE BECAUSE THEY HAVE ALL THAT INFORMATION AND ACT AS PRINCIPALS ON BOTH SIDES OF TRADES INVOLVING THEIR PRODUCTS BANKERS TRUST ALONG WITH CERTAIN OTHER INVESTMENT BANKERS IS SOMETIMES ABLE TO OVERCHARGE HE CONTENDS THE COMBINATION OF EXPERTISE AND SALES PRESSURE MAY HAVE LED BANKERS TRUST TO PUSH TOO AGGRESSIVELY TO SELL PRODUCTS THAT WEREN'T SUITABLE FOR ITS CLIENTS CERTAINLY THAT IS WHAT GIBSON GREETINGS AND P&G ARE CLAIMING AFTER THE RECENT SPIKE UPWARD IN INTEREST RATES WRECKED THEIR BETS THAT RATES WERE HEADING LOWER IT IS CLEAR THAT THE COMPANY SHOULD NEVER HAVE BEEN PUT IN A POSITION LIKE THIS AS WE RELIED ON BANKERS TRUST TO ADVISE US ON THESE TRANSACTIONS ASSERTED GIBSON CHAIRMAN BENJAMIN SOTTILE IN A PREPARED STATEMENT EARLIER THIS WEEK BUT BANKERS TRUST INSIDERS NOTE THAT CLIENTS WHO IN THE PAST EARNED FAT RETURNS FROM SUCCESSFUL BETS DIDN'T COMPLAIN ABOUT THE SIZE OF THEIR PROFITS THEY AND OTHER DEALERS CRITICIZE CORPORATIONS FOR SOMETIMES USING DERIVATIVES TO SPECULATE ON INTERESTRATE MOVES RATHER THAN SIMPLY LOCKING IN LOWCOST LONGTERM FINANCING THUS SOME KNOWLEDGEABLE CLIENTS SAY IT ISN'T BANKERS TRUST'S FAULT IF COMPANIES USING ITS PRODUCTS GOT INTO TROUBLE I DO THINK BANKERS TRUST HAS BEEN MORE INNOVATIVE THAN OTHER FIRMS SAYS STUART REESE SENIOR VICE PRESIDENT OF MASSACHUSETTS MUTUAL LIFE INSURANCE CO IN SPRINGFIELD BUT INNOVATION ISN'T BAD UNLESS YOU DON'T UNDERSTAND IT THEIR INNOVATION GIVES US MORE FLEXIBILITY TO DO WHAT WE WANT TO DO BESIDES ADDS WAYNE WICKER DIRECTOR OF EMPLOYEEBENEFIT INVESTMENTS AT DAYTON HUDSON CORP NOBODY IS MAKING CORPORATE FINANCE EXECUTIVES BUY ANYTHING WE REJECT NINE OUT OF EVERY 10 IDEAS THAT ARE BROUGHT TO US HE SAYS IF I HAVE A DIFFICULT TIME UNDERSTANDING THE TRADE WE PROBABLY WILL TEND TO BACK OFF BUT HE SAYS HE HAS BEEN SATISFIED WITH THE TWO BIG TRADES HIS COMPANY HAS DONE WITH BANKERS TRUST HOWEVER THE PRESSURE ON BANKERS TRUST SALESPEOPLE TO SELL THE PRODUCTS HAS BEEN INTENSE THE BUSINESS OF SELLING DERIVATIVES TO CORPORATIONS IS HEADED BY JOHN LAVIN A TOUGH CONTROLORIENTED EXECUTIVE AND A VETERAN OF THE BUSINESS SEVERAL FORMER EMPLOYEES SAY THEY QUIT BANKERS TRUST OVER THE PAST 12 MONTHS IN PART BECAUSE OF RISING DISCOMFORT WITH THE PRODUCTS THEY WERE ENCOURAGED TO PRESS ON CORPORATE CUSTOMERS THE FORMER SALESPEOPLE SAY THAT WHILE THERE WAS FULL DISCLOSURE ABOUT THE TERMS OF THE TRANSACTIONS THEY WERE SELLING THEY WERE ENCOURAGED TO SOFTPEDAL THE LIKELIHOOD THAT THE PRODUCTS COULD BACKFIRE CLIENTS WERE LULLED INTO A FALSE SENSE OF SECURITY ASSERTS ONE PERSON WHO WORKED FOR MR LAVIN MR KIDD OF BANKERS TRUST RESPONDS THAT THOSE ACCUSATIONS ARE TOTALLY FALSE AND THE INDIVIDUALS WHO MADE THEM HAVE ACTED WITH A RECKLESS DISREGARD FOR THE TRUTH I CAN ONLY SPECULATE THAT THEY DID SO TO FURTHER SOME PERSONAL OR COMPETITIVE VENDETTA AGAINST JACK LAVIN OR BANKERS TRUST SEE RELATED LETTER LETTERS TO THE EDITOR BANKERS TRUST'S DERIVATIVES RECORD WSJ MAY 18 1994 9404220088 YY94 MM05 9405180016 940420 TEXAS JOURNAL ECONOMIC FOCUS THE HOUSTONIANS' SUBURB OF CHOICE IT'S FORT BEND BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL CHECK JUST ABOUT ANY TOP 10 LIST AND YOU WILL FIND FORT BEND COUNTY THE BEST SPOT FOR MANUFACTURING IN THE US A GROUP OF REALESTATE EXECUTIVES RANKED FORT BEND AT NO 2 THE FASTESTGROWING WHITECOLLAR ADDRESS NO 3 IN THE NATION ACCORDING TO AMERICAN DEMOGRAPHICS MAGAZINE HOW ABOUT FAMILY VALUES FORT BEND HAS THE EIGHTHHIGHEST PERCENTAGE OF TRADITIONAL FAMILIES IN THE COUNTRY SAYS THE US CENSUS BUREAU YOU CAN KEEP THIS UP FOR QUITE A WHILE FORT BEND HAS THE NATION'S NINTH MOST DIVERSE POPULATION IT HAS THE LOWEST DROPOUT RATE IN THE SIXCOUNTY HOUSTON METROPOLITAN AREA AND A COLLEGEEDUCATION RATE THAT IS 49 HIGHER THAN THE US AND TEXAS AVERAGES CONVINCED YET AMID THE SEDENTARY ECONOMY OF HOUSTON AND THE SMOKESTACKS AND REFINERIES OF MUCH OF THE GULF COAST FORT BEND COUNTY HAS EMERGED AS A UTOPIA OF SORTS AN UNHERALDED CENTER OF EXPLOSIVE GROWTH A MAGNET FOR EDUCATED NONUNION ETHNICALLY DIVERSE WORKERS WHO OWN THEIR HOMES EARN HIGHERTHANAVERAGE INCOMES AND LIVE IN NUCLEAR FAMILIES IT IS A PROSPERITY THAT THIS COUNTY OF 245000 OWES IN LARGE PART TO ITS CRIMERIDDEN TRAFFICLADEN NEIGHBOR TO THE NORTHTHE CITY OF HOUSTON THE CITY'S BEST AND BRIGHTEST LIKE THEIR COUNTERPARTS THROUGHOUT THE NATION ARE FLOCKING TO THE SUBURBS AND FOR MANY FORT BEND COUNTY IS THE SUBURB OF CHOICE INDEED FROM 1980 TO 1992 FORT BEND COUNTY'S POPULATION GREW AT AN AVERAGE ANNUAL RATE OF 54 THAT COMPARES WITH A RATE OF 18 FOR ALL OF TEXAS AND JUST 04 FOR HOUSTON THIS IS A THREAT TO THE VIABILITY OF HARRIS COUNTY AND OF HOUSTON ITSELF SAYS JARED HAZLETON DIRECTOR OF THE CENTER FOR BUSINESS AND ECONOMIC ANALYSIS AT TEXAS A&M UNIVERSITY THE PROPERTYTAX BASE SHRINKS AND THEN THE SERVICES SHRINK AND THAT CAUSES MORE PEOPLE TO MOVE OUT HOUSTON OFFICIALS ARE QUICK TO COUNTER THAT FORT BEND HAS THE PERCENTAGES ON ITS SIDE BECAUSE IT'S STARTING FROM SUCH A SMALL BASE EVEN SO SINCE 1980 FORT BEND GREW BY 117780 RESIDENTS 40 MORE THAN THE 84297 INCREASE POSTED BY HOUSTON THE INVASION HAS TURNED FORT BEND'S FARMLAND INTO MASTERPLANNED COMMUNITIES BIG NAMES LIKE GERALD HINES AND AMERICAN GENERAL CORP ARE BUILDING PRISTINE RESIDENTIAL RETAIL AND OFFICE CENTERS BRINGING A SENSE OF ORDER THAT CONTRASTS SHARPLY WITH NEARBY HOUSTON'S UNZONED HODGEPODGE DEVELOPMENT IF YOU HAVE A VERY NICE COMMUNITY PEOPLE WILL COME TO IT SAYS HERBERT W APPEL JR PRESIDENT OF THE GREATER FORT BEND ECONOMIC DEVELOPMENT COUNCIL AND LEST THEY BE ACCUSED OF REPRESENTING JUST ANOTHER WHITEFLIGHT SUBURB FORT BEND OFFICIALS ARE ARMED WITH CENSUS BUREAU DATA NAMING THE COUNTY ONE OF THE MOST ETHNICALLY DIVERSE IN THE COUNTRY 54 WHITE 21 BLACK 19 HISPANIC AND 6 ASIAN CREDIT MUCH OF FORT BEND'S DIVERSITY TO THE OIL RECESSION OF THE 1980S WHEN THE BOTTOM FELL OUT OF THE HOUSTONAREA ECONOMY THE SNAZZY PLANNED DEVELOPMENTS SOUTHWEST OF THE CITY SUDDENLY BECAME AFFORDABLE TO MORE PEOPLE IF YOU WANT YOUR CITY TO BE INTEGRATED JUST HAVE A HUGE RECESSION SAYS AL BALLINGER ECONOMICS DATA MANAGER FOR THE UNIVERSITY OF HOUSTON CENTER FOR PUBLIC POLICY AND A RESIDENT OF FORT BEND COUNTY TO A LARGE EXTENT IT'S A REALESTATE PRICING PHENOMENON HOUSING BECAME VERY AFFORDABLE FOR MINORITIES WHO ARE TRADITIONALLY KEPT OUT OF CERTAIN AREAS BUT BEFORE ANYONE STARTS TRUMPETING FORT BEND AS THE FEELGOOD COUNTY OF THE FUTURE IT SHOULD BE NOTED THAT THE VARIOUS ETHNIC GROUPS HAVE CONGREGATED IN SEPARATE POCKETS THROUGHOUT THE COUNTY AND MANY PARTS REMAIN SEGREGATED THE NUMBERS MAKE IT SOUND LIKE EVERY THIRD HOUSE IS OWNED BY A BLACK BUT THAT'S NOT THE WAY IT IS MR BALLINGER SAYS ONE OTHER POINT WORTH MENTIONING FORT BEND COUNTY ISN'T JUST ANOTHER BEDROOM COMMUNITY ITS RESIDENTS TRUDGING OFF TO WORK IN THE BIG CITY EVERY DAY ALTHOUGH 46 OF COUNTY RESIDENTS STILL WORK OUTSIDE THE AREA INCREASING NUMBERS OF PEOPLE ARE FINDING JOBS NEAR HOME THIS MONTH PRUDENTIAL INSURANCE CO OF AMERICA NEWARK NJ BEGAN CLOSING REGIONAL OFFICES IN HOUSTON AND MOVING AS MANY AS 1300 JOBS TO SUGARLAND IN FORT BEND JUST THIS WEEK MAKITA USA INC A CERRITOS CALIF HANDTOOL AND POWERTOOL MAKER IS EXPECTED TO ANNOUNCE A NEW DISTRIBUTION CENTER IN FORT BEND COUNTY BRINGING WITH IT ABOUT 40 JOBS AND LOS ANGELESBASED UNOCAL CORP THE OIL AND GAS COMPANY ALSO HAS MOVED 700 JOBS TO FORT BEND COUNTY INCLUDING 200 FROM HOUSTON NEVERTHELESS HOUSTON REMAINS THE REGION'S ECONOMIC ENGINE AND FORT BEND COUNTY OFFICIALS SAY THEY ARE WELL AWARE OF THEIR ECONOMIC DEPENDENCE ON THE BAYOU CITY ALL OF OUR EGGS ARE IN THE SAME BASKET SAYS CLIFF TERRELL EXECUTIVE VICE PRESIDENT OF THE RICHMOND/ROSENBERG AREA CHAMBER OF COMMERCE IT'S TO OUR BEST BENEFIT TO BE COOPERATIVE WITH THE ENTIRE HOUSTON REGION SEE RELATED LETTER TEXAS JOURNAL LETTERS TO THE EDITOR NICE TO BE NOTICED WSJ MAY 18 1994 9404200173 YY94 MM05 9405170096 940412 SAFETY FIRST HOW A DEVICE TO AID IN BREAST SELFEXAMS IS KEPT OFF THE MARKET OTHER NATIONS APPROVED IT BUT US DEMANDS PROOF SIMPLE PAD ISN'T RISKY NINEYEAR BATTLE WITH FDA BY BRENT BOWERS STAFF REPORTER OF THE WALL STREET JOURNAL IT IS ABOUT AS SIMPLE AS A MEDICAL DEVICE CAN GET TWO SEALED PLASTIC SHEETS WITH LUBRICANT IN BETWEEN IT IS LAID OVER A WOMAN'S BREAST LIKE A CLOTH DURING AN EXAMINATION TO REDUCE FRICTION GLENDA RICHARDSON THINKS IT PROBABLY SPARED HER DEATH FROM BREAST CANCER JOHN WITHERS A SURGEON AT THE MAUI CLINIC IN HAWAII SAYS IT IS ONE OF THE MOST EFFECTIVE WEAPONS AGAINST BREAST CANCER IN YEARS AND PATRICIA REDMOND A NEW YORK RADIOLOGIST SAYS IT CAN ABSOLUTELY SAVE LIVES BUT DON'T TRY BUYING IT IN THE US THOUGH MANY DOCTORS AND CANCER SPECIALISTS HAIL THE SENSOR PAD AS A USEFUL TOOL IN DETECTING THE DISEASE THAT MANY WOMEN FEAR MOST AND THOUGH IT YEARS AGO SAILED THROUGH APPROVAL PROCESSES IN COUNTRIES IN EUROPE AND ASIA THE FOOD AND DRUG ADMINISTRATION WON'T LET INVENTIVE PRODUCTS INC SELL IT IN THIS COUNTRY GRANT WRIGHT THE PRESIDENT OF INVENTIVE PRODUCTS AND HIS FATHER EARL THE PAD'S COINVENTOR HAVE BEEN FIGHTING FOR NINE YEARS TO GET CLEARANCE FOR THE PRODUCT WHAT BEGAN AS AN FDA REQUEST FOR MORE INFORMATION HAS DEGENERATED INTO A LONG DEBILITATING STRUGGLE AND ALLEGATIONS THAT THE WRIGHTS VIOLATED FEDERAL LAW SO FRUSTRATED DID THE WRIGHTS BECOME ABOUT THE BUREAUCRATIC MAZE THAT SIX YEARS AGO THEY STARTED SELLING THE PAD TO US HOSPITALS WITHOUT FDA CLEARANCE THAT TRIGGERED A COURT BATTLE THAT THEY LOST IN 1992 NOW THEY ARE BACK TO TRYING TO WIN FDA BLESSING FOR THE PAD BUT IF THE DISPUTE ISN'T RESOLVED SOON GRANT WRIGHT SAYS HE WILL CLOSE HIS DECATUR ILL COMPANY WHICH COSTS ABOUT 4000 A MONTH TO OPERATE AND HAS ALREADY BURNED THROUGH 356000 IN LEGAL FEES I'M 33 WITH A WIFE AND THREE KIDS HE SAYS I'VE GOT TO DO SOMETHING WITH MY LIFE MR WRIGHT'S STRUGGLE IN THE EYES OF SOME IS MORE THAN JUST THE TALE OF A SMALLTOWN ENTREPRENEUR'S TANGLE WITH FARAWAY BUREAUCRATS IT IS MORE TOO THAN A STUDY OF HOW THE MEDICALDEVICES INDUSTRY IN THE US COPES WITH THE WORLD'S MOST STRINGENT REGULATORY SYSTEM TO SOME ADVOCATES OF HIS SIMPLE DEVICE IT IS A MANIFESTATION OF THE WAY THE NATION'S LITIGATIONDRIVEN AVERSION TO RISK CAN STIFLE INNOVATION IN THE MEDICAL MARKETPLACE WE AS A SOCIETY REFUSE TO TAKE RISKS AND WANT 100 GUARANTEES THAT OUR LIVES ARE GOING TO BE PERFECT SAYS MARY PALMORE A CHICAGO GYNECOLOGIST DR PALMORE ACKNOWLEDGES THAT THE FDA HAS A LEGAL DUTY TO ENSURE THAT THE PAD ISN'T FALSELY PROMOTED AS A DIAGNOSTIC TOOL BUT SUGGESTS THAT THE AGENCY ITSELF MAY BE CAUGHT UP IN WHAT SHE SEES AS A NATIONAL OBSESSION WITH SAFETY THE FDA IS CONCERNED THAT IN OUR LITIGIOUS SOCIETY A WOMAN WILL SAY I USED IT AND I GOT CANCER ANYWAY' DR PALMORE SAYS THE AGENCY SAYS THAT SAFETY NOT LITIGATION IS ITS MAIN CONCERN AND IT STRONGLY DEFENDS ITS REFUSAL TO AUTHORIZE THE SENSOR PAD THEIR INTENTION IS VERY WORTHY SUSAN ALPERT DIRECTOR OF THE FDA'S OFFICE OF DEVICE EVALUATION SAYS OF THE WRIGHTS BUT THE ISSUE FOR THE AGENCY IS OF ENSURING THAT WE DON'T ALLOW TO MARKET ANY DEVICE THAT POSES SIGNIFICANT RISK WITHOUT AN ATTENDANT BENEFIT INDEED MANY CONSUMER ADVOCATES AND HEALTHCARE SPECIALISTS APPLAUD THE FDA'S RIGOR IN SCREENING DEVICES AND SOME COMPLAIN THAT IT DOESN'T ACT FORCEFULLY ENOUGH THE FDA MEANWHILE FACES A HUGE BACKLOG OF APPLICATIONS FOR NEW MEDICAL DEVICES WHICH HAS STRETCHED THE AVERAGE REVIEW TIME TO 196 DAYS THE AGENCY SAYS IT IS WORKING HARD TO WHITTLE THE BACKLOG OF MORE THAN 5000 APPLICATIONS BREAST CANCER TOOK AN ESTIMATED 46000 LIVES IN THE US LAST YEAR AND WAS THE SECONDBIGGEST CANCER KILLER OF WOMEN EARLY DETECTION IS ESSENTIAL IN DEFEATING IT AND FREQUENT SELFEXAMINATION IS ESSENTIAL TO THAT EFFORT BUT MANY WOMEN DON'T FIND THIS EASY AND THAT IS WHERE THE PAD COMES IN ITS LOWER SHEET CLINGS TO THE SKIN WHILE THE TOP SHEET FLOATS ON A THIN LAYER OF LIQUID SILICON ELIMINATING FRICTION SO A FINGER CAN EXPLORE THE CONTOURS OF AN OBJECT AS SMALL AS A GRAIN OF SALT THE THING THAT AMAZES ME SAYS THE YOUNGER MR WRIGHT IS THAT THE RESEARCH SPENDING ON BREAST CANCER KEEPS GOING UP AND I CAN'T GET THIS SIMPLE 7 PRODUCT INTO THE HANDS OF WOMEN WHO WANT IT HIS FATHER EARL ONCE THOUGHT THE SENSOR PAD WOULD BE A BIG SUCCESS MR WRIGHT 63 IS AN ESTABLISHED INVENTOR WHOSE PRODUCTS RANGE FROM A BLOODSERUM FILTER USED IN LABORATORIES TO NONAEROSOL FOAMING PUMPS USED BY HOSPITAL SURGEONS MR WRIGHT IN 1986 SET UP INVENTIVE PRODUCTS AS A SUBSIDIARY OF HIS EARL WRIGHT CO SOLELY TO MAKE AND MARKET THE SENSOR PAD HE PUT HIS SON IN CHARGE GAINING APPROVAL TO SELL IT IN OTHER COUNTRIES WASN'T A PROBLEM INVENTIVE PRODUCTS APPLIED FOR MARKETING AUTHORIZATION IN CANADA IN 1985 AND GOT IT WITHIN 30 DAYS GRANT WRIGHT SAYS HE ALSO SAYS THE PAD HAS BEEN APPROVED IN JAPAN SINGAPORE KOREA THAILAND AND MOST WEST EUROPEAN COUNTRIES ALTHOUGH INVENTIVE PRODUCTS HASN'T ACTIVELY PROMOTED IT ABROAD WE'VE HAD NO PROBLEMS ANYWHERE IN THE WORLD HE SAYS EXCEPT AT HOME WHEN THE WRIGHTS SOUGHT FDA CLEARANCE FOR THE DEVICE IN 1985 THE AGENCY'S INITIAL RESPONSE WAS POSITIVE STILL THE GOVERNMENT WANTED MORE INFORMATION EVERY TIME WE SUBMITTED INFORMATION THEY ASKED FOR MORE THE SON RECALLS AFTER SEVERAL MONTHS THE AGENCY DENIED APPROVAL FOR THE PAD BUT INDICATED ITS CONCERNS MIGHT BE MET BY EXTENSIVE LABELING CHANGES THE FDA WANTED THE LABELING TO STATE THAT THE SENSOR PAD COULD BE SOLD BY PRESCRIPTION ONLY AND IT WANTED ALL REFERENCES TO BREAST CANCER DELETED THE LABEL WAS TO INCLUDE THE CHEMICAL COMPOSITION OF THE DEVICE IT ALSO WAS TO DESCRIBE THE 10INCHDIAMETER PAD'S SUSCEPTIBILITY TO HEAT SUNLIGHT SOAP FORMALIN ALCOHOL AND OTHER MECHANICAL AGENTS MR WRIGHT SAYS HE IMMEDIATELY SET ABOUT COMPLYING WITH THE REQUESTS BUT ABOUT THREE MONTHS LATER HE SAYS THE FDA INEXPLICABLY NOTIFIED HIM THAT IT WOULDN'T RECONSIDER APPROVING THE PRODUCT INSTEAD HE WAS TOLD INVENTIVE PRODUCTS WOULD HAVE TO GO THROUGH A LABORIOUS PREMARKET APPROVAL PROCESS FOR NEW MEDICAL DEVICES THIS PROCESS IS MEANT TO KEEP NEW MOSTLY HIGHTECHNOLOGY INSTRUMENTS OFF THE MARKET UNTIL THEY CAN BE ADEQUATELY TESTED FOR SAFETY FEW PEOPLE WOULD DISAGREE THAT THE FDA SHOULD GET CONVINCING EVIDENCE THAT INVASIVE DEVICES ARE SAFE MORE THAN 200 PEOPLE DIED IN THE 1980S WHEN THEIR BJORKSHILEY HEART VALVES FRACTURED FOR INSTANCE BUT MR WRIGHT ARGUES THAT THE SENSOR PAD POSES NO DIRECT RISK TO USERS THE FDA RESPONDS THAT THE INDIRECT RISK THAT A CANCEROUS LUMP WOULD GO UNDETECTED IS POTENTIALLY LETHAL THE AGENCY'S DR ALPERT SAYS THE FACT THAT A DEVICE IS SIMPLE DOESN'T NECESSARILY MEAN IT IS BENIGN EVERYTHING DEPENDS ON ITS INTENDED USE SHE DISMISSES ENDORSEMENTS FROM DOCTORS AND PATIENTS WHICH SHE SAYS MANY DEVICE MAKERS TROT OUT AS ANECDOTAL EVIDENCE THAT IS INSUFFICIENT TO MAKE A SCIENTIFIC CASE REPORTING DOESN'T DO IT DATA DOES SHE SAYS IN 1992 ONLY 12 MEDICAL DEVICES WERE GIVEN FDA PREMARKET APPROVAL INCLUDING HEART PACEMAKERS LENSES THAT ARE IMPLANTED INTO THE EYE AFTER CATARACT SURGERY AND DEVICES FOR SMASHING KIDNEY STONES OF THE SIMPLE NONINVASIVE PAD I'VE NEVER SEEN A PRODUCT LIKE THIS HELD OFF THE MARKET SAYS JOHN ISAACS A GYNECOLOGIST IN EVANSTON ILL WHO IS THE AUTHOR OF A TEXTBOOK ON BREAST DISEASE BUT THE FDA SAYS THE SENSOR PAD NEEDS TO BE SCRUTINIZED BECAUSE IT ISN'T SUBSTANTIALLY EQUIVALENT TO A PRODUCT ALREADY ON THE MARKET A LEGAL REQUIREMENT FOR QUICK APPROVAL OF SIMPLE DEVICES THE WRIGHTS ARGUE THAT THE PAD IS SUBSTANTIALLY EQUIVALENT TO SOAP AND WATER A MIXTURE THE MEDICAL COMMUNITY HAS LONG RECOMMENDED TO REDUCE FRICTION IN BREAST SELFEXAMINATION TO OBTAIN PREMARKET APPROVAL THE FDA SAID INVENTIVE PRODUCTS WOULD HAVE TO CONDUCT EXHAUSTIVE CLINICAL TESTS ON WOMEN COMPARING THE NUMBER OF BREASTCANCER CASES DETECTED THROUGH SELFEXAMINATION WITH AND WITHOUT THE SENSOR PAD SUCH TESTS MR WRIGHT SAYS WOULD REQUIRE A HUGE SAMPLE A MINIMUM OF 82000 WOMEN TO PRODUCE STATISTICALLY MEANINGFUL RESULTS AN FDA SPOKESWOMAN DISPUTES THAT FIGURE WE WANT TO BE AS REASONABLE AS WE CAN SHE SAYS THE NUMBER WILL BE MUCH LESS THAN THAT MR WRIGHT SAYS HE HAS ALREADY DONE TWO TRIALS WITH SIMULATED BREAST MODELS WHICH HE CLAIMS YIELD MORE ACCURATE RESULTS IN THE FIRST WOMEN EXAMINED THE ARTIFICIAL BREASTS FOR LUMPS USING BOTH THE PAD AND THEIR BARE HANDS IN THE SECOND THEY USED BOTH THOSE METHODS AND ALSO A THIRD METHOD SOAP AND WATER ON THEIR HANDS THE TESTS SHOWED THAT THE PAD ENHANCED SENSITIVITY AND RESULTED IN INCREASED LUMP DETECTION MR WRIGHT SAYS THE FDA REJECTED HIS TRIALS AS INSUFFICIENT THE PROSPECT OF STARTING OVER WITH THE LENGTHY EXPENSIVE TESTS THE FDA DEMANDED PUSHED THE WRIGHTS TO CHANGE THEIR COURSE BECAUSE THEY NEVER CONSIDERED THE PAD TO BE A MEDICAL DEVICE AS DEFINED BY FEDERAL LAW THEY DECIDED IN 1988 TO MARKET THE PRODUCT DIRECTLY TO HOSPITALS THE WRIGHTS SAY THEYAND THEIR ATTORNEYFIGURED THE FDA EITHER WOULD RECOGNIZE ITS LACK OF JURISDICTION OR TAKE INVENTIVE PRODUCTS TO COURT AND FORCE THE ISSUE OVER 15 MONTHS THE WRIGHTS SOLD 250000 PADS TO SOME 200 HOSPITALS BUT IN APRIL 1989 FEDERAL AGENTS RAIDED THE COMPANY'S DECATUR PLANT AND A NUMBER OF HOSPITALS AND CONFISCATED THE PADS THE ACTION CAME ONE DAY AFTER EARL WRIGHT WAS NAMED A FINALIST IN THE INTELLECTUAL PROPERTY OWNERS FOUNDATION'S INVENTOROFTHEYEAR CONTEST FOR HIS TOUCHENHANCING DEVICE GRANT WRIGHT CHALLENGED THE FDA'S CLAIM TO JURISDICTION OVER THE PAD BUT IN 1990 A US DISTRICT COURT IN DANVILLE ILL RULED FOR THE FDA MR WRIGHT APPEALED AND TWO YEARS LATER AN APPELLATE COURT IN CHICAGO UPHELD THE RULING AT THAT POINT INVENTIVE PRODUCTS TOLD THE FDA IT HAD CEASED MARKETING THE PAD BUT MR WRIGHT DIDN'T GIVE UP IN MARCH 1992 HE FILED AN ETHICS COMPLAINT WITH THE FDA'S INTEGRITY OFFICE AGAINST SOME AGENCY OFFICIALS AFTER LEARNING THAT THEY HAD MET WITH A MINORITY SHAREHOLDER OF THE COMPANY WITHOUT HIS KNOWLEDGE AFTER HE FILED THE COMPLAINT HE SAYS THE FDA TURNED HOSTILE AT A MEETING IN WASHINGTON IN AUGUST 1992 TO DISCUSS REQUIREMENTS FOR PREMARKET APPROVAL HE SAYS AN FDA LAWYER FLANKED BY 10 OTHER AGENCY OFFICIALS AND A JUSTICE DEPARTMENT LAWYER TOLD US WE'D NEVER GET OUR PRODUCT TO MARKET AN AGENCY SPOKESWOMAN SAYS IT IS DOUBTFUL SUCH A REMARK WAS MADE WE HAVE GONE OUT OF OUR WAY TO SHOW THE WRIGHTS HOW TO GET THEIR PRODUCT MARKETED SUCH A COMMENT DOESN'T MAKE SENSE SHE SAYS MR WRIGHT PROMPTLY FIRED OFF LETTERS OF COMPLAINT ABOUT THE MEETING TO THE FDA AND TO REP JOHN DINGELL OF MICHIGAN WHO IS KNOWN FOR FLAILING THE FDA FOR ITS MISSTEPS MORE LETTERS FLEW BACK AND FORTH AN FDA INTEGRITY OFFICER WROTE THAT THE FDA WAS ACTING IN GOOD FAITH MR WRIGHT RESPONDED BY DEMANDING AN INVESTIGATION OF THE FDA LAWYER WHO ATTENDED THE AUGUST MEETING A COUPLE OF DAYS LATER HIS WASHINGTON LAWYER SENT A SEVENPAGE LETTER TO A DINGELL STAFFER ACCUSING THE FDA OF HOUNDING INVENTIVE PRODUCTS FOUR MONTHS LATER THE WRIGHTS RECEIVED NOTICE FROM AN FDA COMPLIANCE OFFICER THAT THE AGENCY WAS INVESTIGATING THEM FOR POSSIBLE VIOLATIONS OF FEDERAL LAW FOR SELLING THE PAD IN 199091 MR GRANT SAYS HE HAS RECEIVED NO WORD ABOUT THE INVESTIGATION SINCE AN FDA ADMINISTRATIVE HEARING IN CHICAGO LAST JUNE BUT HE SAYS HE HAS GOTTEN THE MESSAGE IF YOU SQUAWK THEY WILL SLAP YOU AROUND THE FDA DENIES TAKING ANY RETALIATORY ACTIONS MEANWHILE MEMBERS OF THE MEDICAL COMMUNITY CONTINUE TO SUPPORT THE SENSOR PAD DR WITHERS THE SURGEON AT MAUI CLINIC SAYS THE PAD HAS TWICE ENABLED HIM TO FEEL OTHERWISE UNDETECTABLE LUMPS HE SCOFFS AT THE IDEA THAT USING IT MIGHT GIVE WOMEN A FALSE SENSE OF SECURITY ONE OF THE FDA'S MAIN CONCERNS THERE IS NO QUESTION THAT THE SENSOR PAD INCREASES MY TACTILE ABILITY HE SAYS IT MAKES IT 100 EASIER GALE KATTERHAGEN MEDICAL DIRECTOR OF THE CANCER CENTER AT ST JOSEPH MEDICAL CENTER IN BURBANK CALIF SAYS TESTS HE CONDUCTED FOR INVENTIVE PRODUCTS SEVERAL YEARS AGO INDICATED THAT WOMEN WHO USED THE PAD WERE 22 MORE LIKELY TO PERFORM MONTHLY BREAST EXAMS THIS DEVICE IS HARMLESS DR KATTERHAGEN SAYS WOMEN WHO USE THE PAD SWEAR BY IT MS RICHARDSON A 43YEAROLD DECATUR RESIDENT DOUBTS THAT SHE WOULD HAVE FOUND TWO SMALL LUMPS WITHOUT THE PAD SHE HAD A DOUBLE MASTECTOMY IT PROBABLY SAVED MY LIFE SHE SAYS ADDING THAT SHE GAVE ONE TO HER 19YEAROLD DAUGHTER MARY GORMAN A 55YEAROLD WRITER IN WASHINGTON IS CERTAIN THE PAD SAVED HER BREAST I FOUND MY CANCER BEFORE IT WAS DETECTABLE ON A MAMMOGRAM SHE SAYS HER SURGEON KATHERINE ALLEY SAYS THE DEVICE MAY HAVE SAVED MS GORMAN'S LIFE CONSIDERING THE LETHALITY OF BREAST CANCER DR ALLEY SAYS IT IS JUST RIDICULOUS TO KEEP THE PAD OFF THE MARKET POTENTIAL DEMAND APPEARS TO BE HUGE WHEN A PITTSBURGH HOSPITAL OFFERED ON LOCAL TV IN 1990 TO SEND OUT FREE SAMPLES IT WAS FLOODED WITH 36000 CALLS AND LETTERS FOR ALL THAT THE FDA'S DR ALPERT BELIEVES THAT INVENTIVE PRODUCTS IS LARGELY RESPONSIBLE FOR THE DELAYS IT HAS ENCOUNTERED THERE ARE LOTS OF DIFFERENT KINDS OF TRIALS THEY COULD DO TO SHOW THIS IS EFFECTIVE SHE SAYS IT DOESN'T HAVE TO BE YEARS AND YEARS THE ELDER MR WRIGHT HAS MANAGED TO COMMERCIALIZE THE SENSOR PAD'S ANTIFRICTION TECHNOLOGY FOR A MUCH SMALLER MARKET HE HAS BUILT THE SLIPP A NYLON AND PLASTIC SHEET USED IN HOSPITALS TO TRANSFER PATIENTS FROM A GURNEY TO A BED ABOUT 500 HAVE BEEN SOLD BUT HIS SON SPENDS MUCH OF HIS TIME IN HIS NEARLY EMPTY HEADQUARTERS EXPLAINING TO DOCTORS WHY HE CAN'T SEND THEM SAMPLES OF THE SENSOR PAD LAST YEAR HE LAID OFF HIS OWN BROTHER REDUCING HIS WORK FORCE TO HIMSELF AND HIS SECRETARY FROM A PEAK OF 28 SIX YEARS AGO WE'RE AT THE POINT OF SURRENDER HE SAYS SEE RELATED LETTER LETTERS TO THE EDITOR FDA HANGUPS STIFLE MEDICAL INNOVATIONS WSJ MAY 17 1994 9404120131 YY94 MM05 9405170075 940401 SEARCH FOR CURES GETS SHORT SHRIFT IN HEALTHCARE PLANS BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IT'S THE FORGOTTEN ISSUE OF HEALTHCARE REFORM MEDICAL RESEARCH IN ALL THE SPARRING OVER HOW TO PAY FOR UNIVERSAL HEALTH COVERAGE AND CONTAIN MEDICAL COSTS RESEARCH AN ISSUE THAT'S CRITICAL TO THE US HEALTH SYSTEM'S FUTURE HAS LARGELY BEEN IGNORED MOST OF THE HEALTHCARE PROPOSALS IN CONGRESS INCLUDING THE 1342PAGE BILL SUBMITTED BY THE WHITE HOUSE GIVE ONLY LIP SERVICE TO MEDICAL RESEARCH THE PRESIDENT'S PROPOSAL OFFERS NEW GRANTS FOR RESEARCH INTO THE DELIVERY OF HEALTH SERVICES AND THE STUDY OF OUTCOMES OF CERTAIN MEDICAL PRACTICES BUT IT DOESN'T PLEDGE NEW FUNDS FOR THE NATIONAL INSTITUTES OF HEALTH THE GOVERNMENT'S PRINCIPAL MEDICALRESEARCH OPERATION AND GRANT WRITER WHAT'S NOT THERE IS A STABLE STEADY GUARANTEED STREAM OF ADDITIONAL SUPPORT FOR NIH THAT'S WHAT WE'D REALLY HOPED TO SEE SAYS LYNN MORRISON DIRECTOR FOR PUBLIC POLICY AT THE AMERICAN FEDERATION FOR CLINICAL RESEARCH AND RESEARCH ISN'T BEING OVERLOOKED ONLY BY THE PEOPLE PUTTING FORWARD HEALTHCARE PROPOSALS SAYS JONATHAN WEISSLER PRESIDENT OF THE AMERICAN FEDERATION FOR CLINICAL RESEARCH AND A PROFESSOR OF BIOMEDICAL RESEARCH AT THE UNIVERSITY OF TEXAS SOUTHWEST MEDICAL CENTER IN DALLAS IT'S ALSO BEEN IGNORED BY THE LEADERS IN MEDICINE TO SOME EXTENT PEOPLE WHO RUN HOSPITALS WHERE RESEARCH IS CONDUCTED ARE SO CONCERNED ABOUT HOW THEY'RE GOING TO PAY THEIR BILLS ONE YEAR FROM NOW OR TWO YEARS FROM NOW THAT THEY'VE REALLY LOST TRACK OF HOW IMPORTANT RESEARCH IS MANY PEOPLE ARGUE THAT ADVANCING MEDICAL RESEARCH IS THE ULTIMATE HEALTHCARE COST CONTROL BECAUSE IT CAN LEAD TO MORE COSTEFFECTIVE TREATMENTS EARLIER DETECTION AND EVEN ANNIHILATION OF DISEASES THE IRON LUNG OR THE POLIO VACCINE WHICH WOULD YOU RATHER PAY FOR ASKS ROBERT WALLER PRESIDENT AND CHIEF EXECUTIVE OF THE MAYO FOUNDATION IN ROCHESTER MINN WHICH RUNS THE MAYO CLINIC TWO SENATORS TOM HARKIN A DEMOCRAT FROM IOWA AND MARK HATFIELD A REPUBLICAN FROM OREGON ARE TRYING TO GUARANTEE CONTINUED FUNDING FOR MEDICAL RESEARCH THEY RECENTLY INTRODUCED LEGISLATION THAT WOULD PLACE 1 OF ALL HEALTHINSURANCE PREMIUMS IN A TRUST FUND THAT WOULD GO TO THE NIH THE SENATORS TRIED TO INTEREST THE ADMINISTRATION IN THE BILL MR HARKIN EVEN DISCUSSED IT WITH HILLARY RODHAM CLINTON LAST YEAR BUT THE WHITE HOUSE DIDN'T INCORPORATE THE IDEA INTO ITS PROPOSAL SECRETARY OF HEALTH AND HUMAN SERVICES DONNA SHALALA A FORMER PRESIDENT OF THE UNIVERSITY OF WISCONSIN A MAJOR RESEARCH UNIVERSITY NOW SAYS THE ADMINISTRATION IS LIKELY TO SUPPORT THE HARKINHATFIELD LEGISLATION ASIDE FROM CONCERN ABOUT FINANCING A NEW HEALTH SYSTEM AND THE GOAL OF SAVING MONEY OVER THE LONG HAUL MS SHALALA SAYS WE THINK IT'S FUNDAMENTAL 30 YEARS FROM NOW TO BE JUDGED ON WHETHER AMERICANS ARE HEALTHIER THAT IS INEXTRICABLY LINKED TO BASIC SCIENTIFIC RESEARCH THE INSURANCE INDUSTRY THOUGH ISN'T ENTHUSIASTIC I THINK THE BILL HAS A LAUDABLE GOAL BUT WE QUESTION THE OPENENDED NATURE OF THE 1 TAP ON PREMIUMS SAYS CHIP KAHN EXECUTIVE VICE PRESIDENT OF THE HEALTH INSURANCE ASSOCIATION OF AMERICA IT'S AN OPENENDED TAP WITHOUT ANY CLEAR SENSE OF PRIORITIES OF HOW THE MONEY WOULD BE USED AND AT A TIME WHEN WE'RE TRYING TO CONTAIN PREMIUM COSTS IS THIS APPROPRIATE TO BURDEN PREMIUM PAYERS WITH THE COST OF MEDICAL RESEARCH WHILE MOST RESEARCHERS BELIEVE THE US HEALTH SYSTEM NEEDS TO BE OVERHAULED SOME FEAR THE PROPOSALS UNDER CONSIDERATION WON'T ENHANCE MEDICAL RESEARCH AND MAY ACTUALLY HINDER IT FOR EXAMPLE MOST OF THE MAJOR HEALTHCARE BILLS INCLUDING THOSE INTRODUCED BY REPUBLICANS CONTAIN INCENTIVES TO ENCOURAGE THE USE OF HEALTHMAINTENANCE ORGANIZATIONS AND OTHER SOCALLED MANAGED CARE NETWORKS THAT PROVIDE MEDICAL SERVICES FOR A PRESET ANNUAL PREMIUM A NUMBER OF RESEARCHERS BELIEVE THAT HMOS WILL HAVE LITTLE INTEREST IN ENROLLING PATIENTS IN CLINICAL TRIALS OF NEW DRUGS OR THERAPIES WHICH WOULD COST MORE I THINK THEY WOULD HAVE ABSOLUTELY NO INTEREST IN SUPPORTING MOST TYPES OF MEDICAL RESEARCH SAYS DR WEISSLER THEY'RE GOING TO BE CONCERNED PRIMARILY WITH DELIVERING HEALTH CARE AS CHEAPLY AS POSSIBLE ALREADY IN MINNESOTA A STATE THAT HAS A LARGE MANAGEDCARE MARKET THE UNIVERSITY OF MINNESOTA MEDICAL CENTER IS FEELING SQUEEZED ITS HOSPITAL CENSUS HAS DECLINED ABOUT 20 IN THE PAST YEAR OR TWO SAYS GREGORY VERCELLOTTI A HEMATOLOGIST AND AN ASSOCIATE PROFESSOR OF MEDICINE THERE WE HAVE TO SUPPORT OUR RESEARCH BY PERFORMING CLINICAL SERVICES IN ORDER FOR US TO TRAIN RESEARCH FELLOWS AND RESIDENTS WE HAVE TO DEPEND ON HAVING PATIENTS IN THE HOSPITAL HE SAYS WHAT HAS HAPPENED IS WE ARE A RELATIVELY EXPENSIVE HOSPITAL AND HAVE NOT COMPETED WELL FOR CONTRACTS WITH HMOS SOME AT THE HOSPITAL INCLUDING DR VERCELLOTTI ARE CONSIDERING MOVING TO INSTITUTIONS OUT OF STATE WHERE MANAGEDCARE MARKET PRESSURES AREN'T AS STRONG BUT WHAT MAKES ME RETICENT IS THIS MAY HAPPEN TO THEM TOO HE SAYS RESEARCHERS TRADITIONALLY FAR LESS VOCAL AND POLITICALLY ACTIVE THAN THEIR COLLEAGUES IN OTHER MEDICAL FIELDS ARE SPEAKING OUT THEY HAVE BEGUN A LETTERWRITING CAMPAIGN TO MEMBERS OF CONGRESS URGING SUPPORT FOR THE HARKINHATFIELD BILL AND OTHER MEASURES TO PRESERVE AND ENHANCE MEDICAL RESEARCH IN THE OVERHAULED US HEALTH SYSTEM HEALTHCARE REFORM IS COMING AT A TIME WHEN THE OPPORTUNITIES FOR INVESTIGATION ARE EXPLODING THE HUMAN GENOME PROGRAM MOLECULAR MEDICINE THE ABILITY TO APPLY GENETIC THERAPY TO A VARIETY OF DISEASES SAYS THE MAYO FOUNDATION'S DR WALLER MY WORRY IS IF WE DON'T CONTINUE TO PUSH FORWARD ON THE VARIETY OF FRONTS AND RESEARCH AND DON'T INVEST IN RESEARCH AND EDUCATION TO TRAIN PEOPLE IT WILL BE SHORTSIGHTED AND IN THE LONG TERM WE WILL BECOME MEDIOCRE SEE RELATED LETTER LETTERS TO THE EDITOR CLINTON PLAN PLEDGES NEW FUNDS TO NIH WSJ MAY 17 1994 9404010135 YY94 MM05 9405170056 940428 A LESSON FOR ALLISON BY WILLIAM R MATTOX JR I AM NOT THE KIND OF GUY WHO NORMALLY TAKES PART IN FEMINIST CONSCIOUSNESSRAISING EFFORTS BUT I AM PARTICIPATING IN TAKE YOUR DAUGHTER TO WORK DAY TODAY BECAUSE I HAVE AN EIGHTYEAROLD DAUGHTER WHOSE SELFESTEEM MATTERS A GREAT DEAL TO ME FOR THE UNINITIATED TAKE YOUR DAUGHTER TO WORK DAY IS AN ANNUAL EVENT DREAMED UP BY THE MS FOUNDATION IN RESPONSE TO RESEARCH SHOWING THAT GIRLS' SELFESTEEM OFTEN PLUMMETS DURING THE FRAGILE PRETEEN AND EARLY ADOLESCENT YEARS BY EXPOSING YOUNG GIRLS TO SUCCESSFUL WOMEN IN THE WORKPLACE ORGANIZERS HOPE THAT GIRLS WILL LEARN TO THINK MORE HIGHLY OF FEMALES IN GENERAL AND OF THEMSELVES IN PARTICULAR I HAVE A GREAT DAY PLANNED FOR MY DAUGHTER ALLISON THIS MORNING I PLAN TO TAKE HER BY THE OFFICES OF TWO WOMEN WHOSE JOB IT IS TO MEET REGULARLY WITH MEMBERS OF CONGRESS AND OTHER PUBLIC OFFICIALS THEN I PLAN TO HAVE HER TALK WITH A YOUNG WOMAN WHO JUST FINISHED GRADUATE SCHOOL AT JOHNS HOPKINS UNIVERSITY AND IS NOW SERVING AS A HEALTH POLICY ANALYST AT LUNCH SHE'LL CHAT WITH A WOMAN WHO DOES SOME PUBLIC SPEAKING AND ANOTHER WHO CRUNCHES NUMBERS IN OUR ACCOUNTING DEPARTMENT FINALLY IN THE LATE AFTERNOON ALLISON IS SCHEDULED TO MEET WITH A WOMAN WHO USED TO PRACTICE LAW AND NOW MANAGES A BEVY OF STAFF WRITERS I AM SURE ALL OF THIS WILL BE INTERESTING TO ALLISON BUT THE TIME I AM MOST LOOKING FORWARD TO IS THE RIDE HOME FOR IT IS THEN THAT I PLAN TO POINT OUT TO MY DAUGHTER THAT SOME OF THE EXCITING TASKS CARRIED OUT BY MY FEMALE COLLEAGUES IN THE WORKPLACE ARE TASKS MY WIFE PERFORMED IN JOBS SHE HELD PRIOR TO MOTHERHOOD SHE USED TO MEET REGULARLY WITH CONGRESSMEN AND SENATORS SHE USED TO DO SOME WRITING AND PUBLIC SPEAKING AND SHE HAS A PHI BETA KAPPA KEY FROM HER COLLEGE DAYS AFTER I REMIND MY DAUGHTER OF THESE THINGS I PLAN TO TURN TO HER AND LOOK HER IN THE EYE AND SAY ALLISON YOU MUST BE A VERY SPECIAL YOUNG GIRL YOUR MOTHER COULD BE USING HER TALENTS AND SKILLS IN ALL SORTS OF JOBS IN THE WORKPLACE BUT SHE HAS CHOSEN INSTEAD TO USE THEM AT HOME TEACHING YOU SHE MUST LOVE YOU VERY VERY MUCH AND THINK YOU ARE VERY VERY IMPORTANT SOMEHOW I THINK THAT AT THAT MOMENT MY DAUGHTER'S SELFESTEEM WILL RISE TO A LEVEL HERETOFORE UNIMAGINED BY THE ORGANIZERS OF TAKE YOUR DAUGHTER TO WORK DAY AND FOR THAT I OWE A DEBT OF GRATITUDE TO MY WIFE WHOSE ESTEEMBUILDING JOB AS A MOTHER AT HOME RARELY RECEIVES THE PUBLIC ESTEEM IT DESERVES MR MATTOX IS VICE PRESIDENT FOR POLICY OF THE FAMILY RESEARCH COUNCIL IN WASHINGTON DC SEE RELATED LETTERS LETTERS TO THE EDITOR LEAD YOUR DAUGHTER TO SELFESTEEM WSJ MAY 17 1994 9404280077 YY94 MM05 9405170022 940418 REVIEW & OUTLOOK EDITORIAL HOW TEACHERS ERASE BOARDS THOUGH MOST PEOPLE THINK OF THE LOCAL SCHOOLS AS A VITAL PART OF THEIR COMMUNITY IT IS AN ODD FACT THAT VERY FEW PEOPLE EVER SHOW UP TO VOTE FOR THEIR LOCAL SCHOOL BOARDS WHICH SET SCHOOL POLICIES AFTER FEDERAL AND STATE MANDATES ARE MET HOWEVER AT LEAST ONE INTERESTED PARTY TO THE SCHOOLS DEBATE HAS FOUND A WAY TO EXPLOIT THESE LOW CITIZEN TURNOUTS TEACHER UNIONS GROWN IN POWER OFTEN FIND THAT THESE LOWTURNOUT ELECTIONS ARE A BETTER WAY TO ACHIEVE THEIR GOALS THAN STRIKING THEY'VE MANAGED TO GET SYMPATHIZERS ONTO THE GOVERNING BODIES OF LOCAL DISTRICTS AIMING TO CONTROL BOTH THE MANAGEMENT AND LABOR SIDES OF THE BARGAINING TABLE BUT SOMETIMES EVEN THE NEXT ELECTION CYCLE IS TOO LONG TO WAIT TO SATISFY TEACHER EXPECTATIONS THEY'VE NOW DISCOVERED THAT WAGING RECALL CAMPAIGNS AGAINST SCHOOL BOARDS IS A QUICKER WAY TO CRACK THE WHIP ON MEMBERS WHO DON'T ACCEDE TO THE UNION'S DEMANDS LAST WEEK THREE TRUSTEES OF THE UNION ELEMENTARY SCHOOL DISTRICT IN THE SAN JOSE CALIF AREA WERE REMOVED TWO OF THEM ONLY SIX MONTHS BEFORE THEIR TERMS WERE UP A FOURTH BOARD MEMBER SURVIVED BY 200 VOTES WITH EXTRAORDINARY EFFORT THE RECALL CAMPAIGN WAS GREATLY FUNDED AND MANNED BY THE LOCAL TEACHER UNION WITH A CONSULTANT AND MONEY FROM THE CALIFORNIA TEACHERS ASSOCIATION OPPONENTS OF THE RECALL HAVE FILED A COMPLAINT WITH ELECTION AUTHORITIES ALLEGING THAT THE TEACHERS SOUGHT TO HIDE THE EXTENT OF THEIR INVOLVEMENT THE DISTRICT BOARD ANGERED THE UNION IN TWO BASIC WAYS BY NOT AGREEING TO USE 114 MILLION IN PROCEEDS FROM SALE OF A SURPLUS SCHOOL SITE TO GIVE RAISES AND BY RETAINING A SUPERINTENDENT WHO SOUGHT TO SHAKE UP ESTABLISHED ROUTINES AMONG PERSONNEL IT HAPPENS THAT AFTER A SICKOUT AND WORK TO RULE TACTICS BY THE TEACHERS BROUGHT ON NEW TENSIONS A MAJORITY OF THE TRUSTEES SUBSEQUENTLY AGREED TO THE ONGOING RAISE FROM ONETIME REVENUES AND A BUYOUT OF THE SUPERINTENDENT'S CONTRACT BUT TO SHOW WHO'S BOSS THE RECALL EFFORT PROCEEDED ANYWAY AGAINST THE MAJORITY AND MINORITY ALIKE SIMILAR ISSUES WERE BEHIND A 1992 RECALL OF THREE BOARD MEMBERS IN THE NEARBY SANTA CLARA UNIFIED SCHOOL DISTRICT THEY WERE TURNED OUT ALONG WITH THE REMAINING TRUSTEES WHO WERE UP FOR ELECTION AT THAT TIME INTERESTINGLY IN BOTH OF THESE DISTRICTS THE SALARY SQUABBLE FOCUSED HEAVILY ON THE PAY OF OLDER TEACHERS WHO TEND TO BE THE MOST INFLUENTIAL IN UNION AFFAIRS THE TWO DISTRICTS HAVE MATURE STAFFS AND WERE ACCUSED OF SHORTCHANGING THESE INSTRUCTORS WHICH IS ANOTHER WAY OF SAYING THAT THE DISTRICTS WANTED INSTEAD TO EMPHASIZE THE INCENTIVES FOR ATTRACTING NEW TALENT TO THE RANKS THE UNION DISTRICT WHICH COMPRISES A SUBURBAN IDYLL AROUND THE FORMER ALMADEN VINEYARDS ALSO UPSET ITS ORGANIZED TEACHERS WITH AN INTRADISTRICT SCHOOL CHOICE POLICY WHICH OCCASIONALLY REQUIRES STAFF TO BE SHIFTED AROUND AS PARENTS OPT FOR SOME SCHOOLS OVER OTHERS PUBLICSECTOR UNIONS ARE NOT KNOWN FOR THEIR CUSTOMER ORIENTATION AS YET THE UNIONS' RECALL WEAPON HAS BEEN EMPLOYED SPARINGLY IN SUCH BATTLES NATIONWIDE BUT NEWS OF SUCCESS WILL TRAVEL POLITICIZED TEACHERS KNOW THEY CAN RELY ON SUPPORT FROM A FRACTION OF THE POPULACE WHILE MOST CITIZENS DON'T BOTHER TO VOTE IN THESE ELECTIONS WHICH TYPICALLY ARE POORLY COVERED BY SUBURBAN NEWSPAPERS THE BALANCE OF THE ELECTORATE WHOSE TAXES PAY THE COST OF THIS HEAVY FREIGHT MIGHT WANT TO PAY CLOSER ATTENTION TO THE LESSON SEE RELATED LETTER LETTERS TO THE EDITOR SCHOOL BOARD RECALL WAS LASTRESORT ACTION WSJ MAY 17 1994 9404180030 YY94 MM05 9405160091 940425 REVIEW & OUTLOOK EDITORIAL RICHARD M NIXON RICHARD MILHOUS NIXON WAS ONE OF THE MOST INTRIGUING PUBLIC FIGURES OF OUR ERA OFTEN IN LIFE DEPICTED AS A CARDBOARD VILLAIN IN DEATH HE IS BEING CELEBRATED EVEN BY MANY OF HIS SOMETIME DETRACTORS WHATEVER YOUR VIEW OF HIS HISTORICAL CALAMITY IT TAKES A HARD HEART AND A DEEP GRUDGE NOT TO ADMIRE THE WAY HE CONDUCTED HIMSELF IN ITS WAKE CONSIDERING THE DEPTHS HE REACHED WITH HIS RESIGNATION AS PRESIDENT TWO DECADES AGO THIS AUGUST HE SUCCEEDED REMARKABLY WELL WITH THE REHABILITATION OF HIS PERSON AND HIS REPUTATION THIS WAS UNDERSTANDABLY HIS PREOCCUPATION AND HE PURSUED IT WITH THE INTELLIGENCE AND CALCULATION THAT HAVE ALWAYS BEEN HIS HALLMARKS BUT IT REQUIRED EVEN MORE ADMIRABLE HUMAN QUALITIES PERSEVERANCE PATIENCE AND IN THE END PERSPECTIVE ABOUT BOTH HISTORY AND PERSONALITY IN A SENSE THE JUDGMENT OF RICHARD NIXON TURNS ON THE AGEOLD DEBATE OVER THE EXTENT TO WHICH EVENTS ARE SHAPED BY INDIVIDUAL DECISIONS OF GREAT MEN AS AGAINST IMPERSONAL HISTORICAL FORCES ALMOST BY DEFINITION OF COURSE PRESIDENT NIXON BLUNDERED WITH WATERGATE BUT WITH THE PASSING YEARS PASSIONS HAVE COOLED INDEED MEMORY OF WHAT THE SCANDAL WAS ALL ABOUT TURNS HAZY IN THE END THE PRESIDENT HAD TO RESIGN BECAUSE HE HAD LOST THE TRUST OF THE AMERICAN PEOPLE BUT HIS PRECISE SINS BLUR IN THE SWEEP OF OUR TIMES WATERGATE SEEMS OF A PIECE WITH EVENTS BEFORE AND SINCE FROM THE PERSPECTIVE OF THE COMING CENTURY MR NIXON'S RESIGNATION WILL SEEM SCARCELY DISTINGUISHABLE FROM LYNDON B JOHNSON'S DECISION NOT TO SEEK A SECOND TERM PROBABLY THE START OF THIS TORTURED ERA WILL BE MARKED AT THE ASSASSINATION OF JOHN F KENNEDY ONLY THREE WEEKS AFTER HIS FATEFUL DECISION TO SUPPORT THE COUP THAT LED TO THE KILLING OF NGO DINH DIEM AND BLOCKED ANY EASY EXIT FROM VIETNAM THE PASSIONS OF WATERGATE HAVE ENDURED IN THE LEGACY OF VASTLY INFLATED PREROGATIVES OF THE CONGRESS PRESIDENTS STILL HAVE THE BULLY PULPIT OF COURSE BUT WITH IRANCONTRA SPECIAL PROSECUTORS AND THE LIKE THE CONGRESS WAS ULTIMATELY ABLE TO FRUSTRATE EVEN SO POWERFUL A COMMUNICATOR AS RONALD REAGAN THE CURRENT BALANCE OF POWERS BETWEEN THE BRANCHES IS THAT CONGRESS DEPOSES AND PRESIDENTS TAKE THE BLAME THE ONLY CHECK ON THIS POWER NOW SEEMS TO BE MINIWATERGATES IN THE CONGRESS ITSELF SUCH AS THE DEPOSITION OF JIM WRIGHT OR THE MOST CULPABLE OF THE KEATING FIVE IT DOES NOT MAKE FOR STABILITY IN GOVERNMENT NOWHERE IS THIS LEGACY MORE FELT THAN IN THE FEDERAL DEFICIT JUST AS CONGRESS ABDICATED ITS OWN CONTROL BY INDEXING SOCIAL SECURITY AND OTHERWISE CREATING UNBUDGETED ENTITLEMENTS THE BUDGET CONTROL AND IMPOUNDMENT ACT OF 1974 EVISCERATED EXECUTIVE CONTROL OVER THE BUDGET PRESIDENT NIXON SIGNED THIS ACT HAVING NO CHOICE LESS THAN A MONTH BEFORE HE RESIGNED THIS WAS THE YEAR SPENDING SPUN OUT OF CONTROL THE NIXON ERA LEAVES TWO OTHER LEGACIES THAT LOOKING BACK STRIKE US AS SEMINAL ON AUGUST 15 1971 PRESIDENT NIXON DESTROYED THE BRETTON WOODS MONETARY ORDER A BEDROCK OF THE CENTURY'S GREATEST ERA OF INTERNATIONAL ECONOMIC GROWTH THIS SET THE STAGE FOR THE INFLATION OF THE 1970S INDEED WITHIN FIVE WEEKS THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES DECLARED A VERSION OF ECONOMIC WARFARE THAT DID SO MUCH TO SHAPE THE BALANCE OF THE DECADE AND IN MOSCOW ON MAY 26 1972 PRESIDENT NIXON SIGNED A STRATEGIC ARMS LIMITATION AGREEMENT INTENDED TO CEMENT DETENTE WITH THE SOVIETS IT INCLUDED PROHIBITIONS ON DEFENSE AGAINST BALLISTIC MISSILE ATTACK THAT REMAIN IN PLACE TODAY HARDENED INTO ORTHODOXY BY THE PRESENT ADMINISTRATION AND CONGRESS THESE LIMITATIONS ARE LIKELY TO PRECLUDE A TIMELY DEFENSE AGAINST MISSILES DEVELOPED BY THE ROGUE STATES OF THE 21ST CENTURY AT ONE LEVEL THESE DECISIONS WERE INTENDED TO PRODUCE PEACE AND PROSPERITY AS A BASIS FOR THE 1972 PRESIDENTIAL LANDSLIDE BUT AT ANOTHER LEVEL THEY MAY HAVE BEEN HISTORICALLY UNAVOIDABLE THE BRETTON WOODS SYSTEM WAS ALREADY CREAKING BADLY AND ITS 35 GOLD PRICE MAY HAVE ALREADY BEEN INDEFENSIBLE THE CONGRESS WAS NOT ABOUT TO BUILD A SERIOUS MISSILE DEFENSE AND WITH 1972 TECHNOLOGY PERHAPS SHOULD NOT HAVE YET THEY PROVIDE UNFINISHED BUSINESS AS RICHARD NIXON'S FUNERAL SERVICE IMPENDS ON THE CREDIT SIDE OF THE LEDGER WE JOIN WITH OTHERS IN COUNTING THE OPENING TO CHINA WHILE NO DOUBT THAT WAS INEVITABLE SOONER OR LATER IT IS GOOD THAT IT WAS DONE BY A PRESIDENT WITH MR NIXON'S ANTICOMMUNIST CREDENTIALS IN OUR VIEW MORE IMPORTANT PRESIDENT NIXON MANAGED TO EXTRICATE THE US FROM VIETNAM WITH MINIMUM DAMAGE TO ITS INTERNATIONAL STANDING THE LOCAL OUTCOME IN SOUTHEAST ASIA WAS A DISASTER WITH CONGRESS SLASHING FUNDS FOR THE SUPPORT OF SOUTH VIETNAM JUST AS THE NORTH LAUNCHED TANK ATTACKS THAT HAD NOTHING TO DO WITH OPPRESSED PEASANTS BUT ON A LARGER SCALE MR NIXON'S ACCOMPLISHMENT PRESERVED THE HISTORIC CONTAINMENT POLICY THAT ULTIMATELY SUCCEEDED WITH THE COLLAPSE OF THE BERLIN WALL IN 1989 AND THIS SUCCESS WON AGAINST MASSIVE DOMESTIC OPPOSITION AND MANY HISTORICAL PRESSURES STANDS AS AN INDIVIDUAL ACCOMPLISHMENT MUCH HAS BEEN MADE OF MR NIXON'S PERSONALITY WITH ITS MIXTURE OF ASSERTIVENESS AND SHYNESS OF COURSE HE RESENTED THE KENNEDYS HE HAD MUCH REASON FOR IT SEE EARL MAZO'S ACCOUNT NEARBY SEE RELATED ARTICLE NIXON ON THE AGONY OF A CONSITUTIONAL CRISIS' WSJ APRIL 25 1994 YET LOOKING OVER HIS ERA THE FORCE OF PERSONALITY AND INDIVIDUAL DECISIONS SEEM LESS POWERFUL THAN HISTORICAL FORCES AND ACCIDENTS THIS IS NOT SO MUCH A STATEMENT ABOUT HIM AS ABOUT HISTORY IN GENERAL AND OUR TIMES IN PARTICULAR FOR HE WAS A LARGE FIGURE A SINGULAR PRESENCE IN AMERICAN POLITICS THROUGHOUT HIS ADULT LIFE INDEED WE ARE NOT LIKELY SOON AGAIN TO SEE A FIGURE AS ARRESTING AS RICHARD NIXON SEE RELATED LETTERS LETTERS TO THE EDITOR NIXON THE ENDLESS DEBATE WSJ MAY 16 1994 9404250005 YY94 MM05 9405160043 940427 OUR GREATEST RETREAT BY ROBERT W MERRY ON OCT 2 1969 NEWSWEEK'S PROMINENT COLUMNIST STEWART ALSOP STOPPED BY THE WHITE HOUSE AND INTERVIEWED RICHARD NIXON ON VIETNAM HE FOUND THE PRESIDENT IN A MOOD OF RESOLVE I CAN TELL YOU WE'RE NOT GOING TO BE DEFEATED IN VIETNAM AS LONG AS I'M HERE SAID THE PRESIDENT HE HAD BEGUN A MILITARY PULLOUT THIS COULD DO TO ME WHAT HAPPENED TO JOHNSON I KNOW THAT BUT I'D RATHER HAVE THAT THAN ACCEPT A CONCEALED DEFEAT A NATIONAL HUMILIATION BECAUSE I'M SURE THAT WOULD DESTROY THIS COUNTRY'S CONFIDENCE IN ITSELF FINDING THE PRESIDENT PERSUASIVE MR ALSOP SCUTTLED HIS PLANS FOR A COLUMN ENTITLED OUR COMING DEFEAT IN VIETNAM AND INSTEAD WROTE ONE DEFENDING MR NIXON'S POLICY ASIDE FROM WHAT THIS EPISODE REVEALS ABOUT RICHARD NIXON'S ABILITY TO MANIPULATE JOURNALISTS IT ALSO ILLUSTRATES HIS BRILLIANCE AT MANIPULATING EVENTS AS MR ALSOP LATER NOTED MR NIXON'S POLICY WAS ESSENTIALLY A RETREAT A SLOW DELIBERATE MILITARY WITHDRAWAL IN THE FACE OF ENEMY FIRE IT WAS THE GREATEST RETREAT IN US HISTORY ONE OF THE GREATEST IN WORLD HISTORY WHAT IS MORE ALL THE FUNDAMENTAL ELEMENTS OF THE ENIGMATIC RICHARD NIXON ARE WRAPPED UP IN THE STORY START WITH HIS RESOLVE TO PREVENT A NATIONAL HUMILIATION HE KNEW AMERICA COULD NOT WIN THE WAR BUT HE FELT IT WAS CRUCIAL TO PREVENT THE COUNTRY FROM LOSING IT THUS HE REFUSED TO SELL OUT THE REGIME OF SOUTH VIETNAM'S NGUYEN VAN THIEU IN ORDER TO STRIKE A DEAL AT THE ONGOING PARIS PEACE TALKS GREAT NATIONS HE BELIEVED DO NOT SELL OUT THEIR ALLIES THAT LEFT HIM WITH HIS RETREAT STRATEGY AND THE INHERENT DANGERS OF RETREAT WERE ACCENTUATED BY THE NATURE OF THE US MILITARY IN VIETNAM AND POLITICAL PRESSURES AT HOME THE RATIO OF SUPPORT TROOPS TO COMBAT TROOPS WAS 2 TO 1 MR NIXON CONCLUDED HE MUST BRING HOME THE COMBAT TROOPS FIRST TO REDUCE CASUALTIES AND BLUNT ANTIWAR FERVOR BUT IN DOING SO HE WAS LEAVING THE SUPPORT TROOPS VULNERABLE TO A COMMUNIST ATTACK LIKE THE 1968 TET OFFENSIVE WHICH HAD DESTROYED LYNDON JOHNSON'S VIETNAM POLICY SUCH AN ATTACK WROTE MR ALSOP WOULD BE AN ALMOST IRRETRIEVABLE DISASTER FOR THE UNITED STATES AND A WHOLLY IRRETRIEVABLE DISASTER FOR RICHARD NIXON HENCE MR NIXON HAD PLACED HIMSELF IN A PREDICAMENT OF EPIC PROPORTIONS HIS MILITARY CHALLENGE WAS TO CALIBRATE A RISKY MANEUVER IN VIETNAM WHICH COULD LEAD TO DISASTER IN ITSELF AND JUST AS EASILY LEAD TO POLITICAL CRISIS AT HOME AND HIS POLITICAL CHALLENGE WAS TO CALIBRATE AN UNSTABLE DOMESTIC SCENE WHICH COULD ENGULF HIM AT HOME AND UPSET HIS MILITARY CALIBRATIONS IN VIETNAM SUCH WAS THE SITUATION IN LATE 1969 POLLS INDICATED SUPPORT FOR MR NIXON'S POLICY BUT HE CLEARLY WAS VULNERABLE A MASSIVE MARCH ON WASHINGTON IN OCTOBER LEFT MANY THINKING THE ANTIWAR FORCES MIGHT HAVE HIM ON THE ROPES BUT A NOVEMBER PROTEST DEMONSTRATION FIZZLED AFTER MR NIXON DELIVERED A BRILLIANT NOV 3 SPEECH APPEALING TO THE POLITICAL STABILITY AND WISDOM OF MIDDLE AMERICA IT DEFANGED THE OPPOSITION AND GALVANIZED A NATIONAL MAJORITY BEHIND HIS POLICY AND HE SENT OUT VICE PRESIDENT SPIRO AGNEW TO SAVAGE THE ANTIWAR ELEMENTS AND THEIR SUPPORTERS IN THE NEWS MEDIA PUTTING THEM ON THE DEFENSIVE STILL BY SPRING THE COMMUNIST FORCES IN VIETNAM THREATENED TO UPSET THE PRESIDENT'S CALIBRATIONS THE NORTH VIETNAMESE LAUNCHED AN OFFENSIVE IN LAOS AND OTHER UNITS BEGAN TO BREAK OUT OF THEIR SANCTUARIES IN CAMBODIA THE US PULLOUT HAD REACHED 115000 TROOPS AND THE NEXT INCREMENT WOULD CUT DEEPLY INTO US COMBAT STRENGTH ON APRIL 30 MR NIXON ANNOUNCED A MILITARY ASSAULT INTO CAMBODIA TO DESTROY COMMUNIST SANCTUARIES AND THWART AN ENEMY OFFENSIVE TWENTYTHOUSAND US TROOPS MOVED IN CAPTURED VAST STORES OF MATERIEL AND HELD UP 12000 NORTH VIETNAMESE TROOPS IN THE INFILTRATION PIPELINE THIS SERIOUS SETBACK FOR THE COMMUNISTS BOUGHT TIME FOR MR NIXON'S RETREAT BUT IT CAME AT A GRIEVOUS PRICE CAMPUSES ACROSS THE NATION EXPLODED THE COUNTRY'S INTELLECTUAL LEADERS TURNED ON MR NIXON WITH A VENGEANCE HIS ABILITY TO KEEP THE ANTIWAR MOVEMENT OFFGUARD NOW DISINTEGRATED AND YET HE PRESSED AHEAD WITH HIS SLOW RETREAT HE SOUGHT TO BUILD UP THE SOUTH VIETNAMESE ARMY SO IT COULD PROTECT THE REMAINING US TROOPS AND STAVE OFF A COMMUNIST VICTORY RESULTS WERE MIXED A SOUTH VIETNAMESE OPERATION IN LAOS IN EARLY 1971 PROVED MUCH LESS EFFECTIVE THAN THE CAMBODIAN INCURSION A YEAR EARLIER IN SPRING 1972 WHEN THE COMMUNISTS THREATENED TO OVERRUN THE SOUTH MR NIXON MINED HAIPHONG HARBOR AND EXPANDED BOMBING RAIDS OVER NORTH VIETNAM SLOWLY THE NIXON PLAN BEGAN TO WORK THE SOUTH VIETNAMESE ARMY IMPROVED THE COUNTRY GREW MORE STABLE AND NEGOTIATIONS WITH THE NORTH APPEARED INCREASINGLY HOPEFUL AND YET THE HOMEFRONT WAR NEVER LET UP ANTIWAR PROTESTS CONTINUED AND THE SENATE UNDERCUT THE PRESIDENT'S DELICATE NEGOTIATIONS BY VOTING TO CUT OFF ALL FOREIGN AID TO SOUTH VIETNAM ESSENTIALLY OFFERING TERMS TO HANOI THAT MR NIXON HAD REFUSED TO DISCUSS ULTIMATELY MR NIXON NEGOTIATED A SETTLEMENT WITH HANOI THAT ENDED THE HOSTILITIES RETURNED AMERICAN PRISONERS OF WAR AND GAVE SOUTH VIETNAM A CHANCE TO SURVIVE ON ITS OWN IT HAD TAKEN FOUR YEARS OF PRESIDENTIAL EFFORT POLITICAL DEFTNESS AND MILITARY RESOLVE ALL IN THE FACE OF RELENTLESS OPPOSITION FROM ANTIWAR ELEMENTS AT HOME IN THE END IT ALL CAME TO NAUGHT WHEN NORTH VIETNAM OVERRAN THE SOUTH LESS THAN A YEAR AFTER MR NIXON LEFT OFFICE IN DISGRACE PERHAPS THAT DEFEAT COULD HAVE BEEN PREVENTED HAD WATERGATE NOT DESTROYED MR NIXON'S STANDING WE WILL NEVER KNOW BUT WE DO KNOW THAT THE DANGERS AND TENSIONS OF MR NIXON'S GREAT RETREAT BROUGHT TO THE FORE HIS WORST IMPULSES AS WELL AS HIS BEST MINGLED WITH THE COURAGE AND BRILLIANCE WERE HIS TENDENCIES TO QUESTION HIS OPPONENTS' MOTIVES TO PITY HIS BELEAGUERED SELF TO WANT TO DESTROY THOSE HE CONSIDERED HIS ENEMIES THAT IS THE TRAGEDY OF RICHARD NIXON THAT HIS GREATEST ACHIEVEMENT CONTAINED THE SEEDS OF HIS OWN DESTRUCTION IT WAS NEVERTHELESS AN ACHIEVEMENT OF HEROIC DIMENSION MR MERRY EXECUTIVE EDITOR OF CONGRESSIONAL QUARTERLY HAS JUST COMPLETED A BIOGRAPHY OF JOSEPH AND STEWART ALSOP UNDER CONTRACT TO VIKING PENGUIN USA SEE RELATED LETTERS LETTERS TO THE EDITOR NIXON THE ENDLESS DEBATE WSJ MAY 16 1994 9404270011 YY94 MM05 9405160040 940427 BOARD OF CONTRIBUTORS ON NIXON'S ECONOMICS BY HERBERT STEIN IT IS EARLY TO MAKE A DEFINITIVE EVALUATION OF THE PRESIDENCY OF RICHARD NIXON AND I AM CERTAINLY NOT THE PERSON TO DO IT HE WAS MY PATRON AND MY FRIEND BUT I WOULD LIKE TO RECALL SOME ECONOMIC ASPECTS OF HIS PRESIDENCY LESS DRAMATIC THAN CLINKING GLASSES WITH CHOU ENLAI OR WAVING FAREWELL FROM THE STEPS OF A HELICOPTER THAT ARE CERTAINLY PART OF THE STORY MR NIXON'S ECONOMIC POLICY CANNOT BE ENCAPSULATED IN A BUMPER STICKER IT DOES NOT FIT INTO THE NEAT IDEOLOGICAL BOXES LIBERAL OR CONSERVATIVE AND IS DISDAINED BY LIBERALS AND CONSERVATIVES ALIKE THAT IS NOT BECAUSE MR NIXON LACKED GUIDING PRINCIPLES OR BECAUSE IN THE PUNDITS' CLICHE HE WAS COMPLEX HIS POLICY WAS COMPLEX AND SEEMINGLY INCONSISTENT BECAUSE THE REAL WORLD IS LIKE THAT I START A RECITAL OF MR NIXON'S ECONOMICS WITH WHAT MAY SEEM AN ESOTERIC MATTER ON AUG 15 1971 PRESIDENT NIXON CLOSED THE GOLD WINDOW AS WE USED TO SAY HE ENDED THE COMMITMENT OF THE US TO PAY GOLD TO FOREIGN TREASURIES AND CENTRAL BANKS IN EXCHANGE FOR DOLLARS AT A FIXED RATE IN SO DOING HE USHERED IN THE ERA OF FLOATING RATES IN WHICH THE EXCHANGE RATES AMONG CURRENCIES WERE DETERMINED IN MARKETS AND NOT BY THE COMMITMENTS OF GOVERNMENTS THAT RELIEVED GOVERNMENTS OF THE OBLIGATION EITHER TO MANIPULATE THEIR DOMESTIC POLICIES OR TO CONTROL INTERNATIONAL MOVEMENTS OF TRADE AND CAPITAL IN AN EFFORT TO MAINTAIN THE FIXED RATES CONTRARY TO SOME EXPECTATIONS AT THE TIME THE ERA OF FLOATING HAS BEEN AN ERA OF GREATLY EXPANDED INTERNATIONAL TRADE AND INVESTMENT CONTRIBUTING TO THE PROSPERITY OF MILLIONS OF PEOPLE IN AMERICA AND ELSEWHERE WHO NEVER HEARD OF THE GOLD WINDOW PRESIDENT NIXON FURTHER CONTRIBUTED TO THE WORLD'S PROSPERITY BY INITIATING THE TOKYO ROUND OF TRADE NEGOTIATIONS THAT LIKE THE KENNEDY ROUND EARLIER AND THE URUGUAY ROUND MORE RECENTLY HELPED TO REDUCE BARRIERS TO TRADE ENDING THE DRAFT AND INSTITUTING THE ALLVOLUNTEER ARMY IS NOT USUALLY THOUGHT OF AS AN ECONOMIC MEASURE BUT THE MARKET FOR PERSONAL SERVICES IS AN IMPORTANT PART OF THE MARKET FOR MILLIONS OF YOUNG MEN THE DRAFT'S END WAS THE MOST IMPORTANT POSSIBLE STEP TOWARD THE FREE MARKET FLOATING THE DOLLAR LIBERALIZING INTERNATIONAL TRADE AND ENDING THE DRAFT WERE SIGNS OF A MAN WHO VALUED FREEDOM AND HAD LITTLE CONFIDENCE IN THE COMPETENCE OF GOVERNMENT THIRTY YEARS IN GOVERNMENT STARTING AS A JUNIOR LAWYER IN THE OFFICE OF PRICE ADMINISTRATION IN WORLD WAR II HAD LEFT HIM WITH FEW ILLUSIONS ON THAT SCORE STEPS TAKEN DURING HIS ADMINISTRATION TO END CEILINGS ON THE INTEREST PAID ON BANK DEPOSITS TO REMOVE FEDERAL LIMITS ON AGRICULTURAL PRODUCTION AND TO MOVE TOWARD DEREGULATION OF TRUCKING AND AIRLINES WERE FURTHER REFLECTIONS OF THAT ATTITUDE AT THE SAME TIME HE REALIZED THAT GOVERNMENT HAS POSITIVE FUNCTIONS AND THAT THESE FUNCTIONS SHOULD RESPOND TO CHANGES IN SOCIAL AND TECHNOLOGICAL CONDITIONS THUS HE OBTAINED THE ESTABLISHMENT OF THE ENVIRONMENTAL PROTECTION AGENCY AND THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION UNDOUBTEDLY AS MIGHT HAVE BEEN EXPECTED SOME OF THE REGULATIONS LATER ISSUED BY THESE AGENCIES WERE EXTREME EVEN RIDICULOUS BUT EVEN THE MOST ARDENT DEREGULATORS DURING THE SUCCEEDING 20 YEARS HAVE NOT PROPOSED TO RETURN TO THE SITUATION THAT EXISTED BEFORE THESE AGENCIES WERE CREATED JUST AS HE DISLIKED GOVERNMENT REGULATIONS BUT RECOGNIZED THAT THERE WERE SOME NECESSARY ONES HE DISLIKED GOVERNMENT SPENDING BUT FELT THE NEED TO INCREASE IT FOR SOME PURPOSES HE WAS EXCEPTIONALLY RIGOROUS IN VETOING APPROPRIATIONS AND IMPOUNDING FUNDS FOR PROGRAMS HE THOUGHT WERE OF LOW PRIORITY BUT HE FOUGHT FOR THE DEFENSE BUDGET THAT UNDERGIRDED HIS FOREIGN POLICY AND WAS WILLING TO PROPOSE NEW DOMESTIC EXPENDITURES TO MEET WHAT HE THOUGHT WERE NATIONAL NEEDS FOR EXAMPLE HE INTRODUCED GENERAL REVENUE SHARING AS A WAY OF HELPING THE STATES TO PERFORM THEIR LEGITIMATE FUNCTIONS WITHOUT DICTATION BY THE FEDERAL GOVERNMENT HE WAS NOT A FUNDAMENTALIST ABOUT BALANCING THE BUDGET AND WAS HAPPY AT ONE POINT TO SAY NOW I AM A KEYNESIAN IN ECONOMICS BUT THE DEFICITS OF HIS TIME IN OFFICE AMOUNTED TO ONLY ABOUT 1 OF GROSS DOMESTIC PRODUCT COMPARED WITH SAY 4 IN THE REAGAN YEARS AT THE END OF MR NIXON'S PRESIDENCY THE FEDERAL DEBT AS A FRACTION OF GDP WAS AT THE LOWEST POINT IT HAS EVER REACHED IN THE YEARS SINCE THE BEGINNING OF WORLD WAR II PRESIDENT NIXON TRIED TO ESTABLISH AS A PRINCIPLE OF FISCAL POLICY THAT EXPENDITURES SHOULD NOT EXCEED THE REVENUES THAT WOULD BE YIELDED WHEN THE ECONOMY WAS AT HIGH EMPLOYMENT HE THOUGHT THAT WOULD SERVE AS A LIMIT TO SPENDING AND TO THE ACCUMULATION OF DEBT WHILE STILL LEAVING ROOM FOR DEFICITS IN RECESSIONS WHEN THEY WOULD BE STABILIZING BUT THIS IDEA WAS DERIDED BY CONSERVATIVES AND REJECTED BY LIBERALS AND WE HAVE SLOSHED AROUND FOR 20 YEARS WITHOUT ANY VISIBLE STANDARD OF FISCAL POLICY THIS PROBLEM OF BEING TOO LIBERAL FOR THE CONSERVATIVES AND TOO CONSERVATIVE FOR THE LIBERALS WAS TO DOOM OTHER PROPOSALS OF MR NIXON'S HE WORKED HARD TO DEVELOP A PROGRAM OF WELFARE REFORM THAT WOULD BALANCE THE GOAL OF SETTING A FLOOR UNDER INCOMES WITH THE GOAL OF PRESERVING INCENTIVES TO WORK AND TO FAMILY COHESION HE PROPOSED A PLAN OF HEALTH CARE REFORM THAT WOULD CONCENTRATE FEDERAL PARTICIPATION ON THE URGENT NEEDS PROTECTION AGAINST THE COSTS OF CATASTROPHIC ILLNESS AND ASSISTANCE TO THE INDIGENT WITHOUT INVOLVING THE GOVERNMENT IN MANAGING THE WHOLE HEALTH CARE SYSTEM LOOKING BACK FROM TODAY WE CAN SEE HOW SENSIBLE THESE PROPOSALS WERE BUT THEY WERE BEYOND THE COMMON PERCEPTIONS OF HIS TIME FOR MANY PEOPLE CERTAINLY FOR MOST ECONOMISTS NIXON ECONOMIC POLICY WILL BE IDENTIFIED WITH THE IMPOSITION OF WAGE AND PRICE CONTROLS THE CONTROLS WERE A MISTAKE RECOGNIZING THEIR ECONOMIC IRRATIONALITY MR NIXON THOUGHT THEY WERE A POLITICAL NECESSITY A LARGE PART OF THE COUNTRY INCLUDING THE REPUBLICANS IN CONGRESS WANTED SOME KIND OF CONTROLS AND THE IMPOSITION OF THE CONTROLS WAS AT THE TIME THE MOST POPULAR THING PRESIDENT NIXON EVER DID I AM NOT SURE THAT MR NIXON WAS RIGHT EVEN ABOUT THE POLITICAL NECESSITY BUT HE WAS THE EXPERT ON THAT HE COMFORTED HIMSELF WITH THE THOUGHT THAT WE AT LEAST UNLIKE THE DEMOCRATIC OPPOSITION WOULD MANAGE THE CONTROLS TO MINIMIZE THEIR HARM AND TO GET OUT OF THEM AS FAST AS POSSIBLE THERE WAS SOMETHING TO THAT BUT STILL THEY WERE A MISTAKE THE BEST THAT CAN BE SAID FOR THEM IS THAT THEY MAY HAVE DROWNED FOR SOME TIME THE IDEA THAT CONTROLS COULD BE AN EFFECTIVE WAY OF ACHIEVING SIMULTANEOUSLY HIGH EMPLOYMENT AND LOW INFLATION MR NIXON DID NOT WIN ANY NOBEL PRIZE FOR ECONOMICS I DOUBT THAT ANY PRESIDENT EVER WILL MAKING NATIONAL ECONOMIC POLICY IS A MUCH MESSIER BUSINESS THAN WRITING JOURNAL ARTICLES OR NEWSPAPER COLUMNS IT IS PLAYING ON A CLOTH UNTRUE WITH A TWISTED CUE AND ELLIPTICAL BILLIARD BALLS I DO NOT FEEL THE NEED TO GIVE MR NIXON A GRADE FOR HIS PERFORMANCE BUT THOSE WHO DO SHOULD TRY TO LOOK AT THE RECORD WHICH THEY WILL FIND IS LIKE THE WORLD MORE MIXED AND COMPLICATED THAN THEY MAY THINK A CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS IN THE NIXON ADMINISTRATION MR STEIN IS AN AMERICAN ENTERPRISE INSTITUTE FELLOW SEE RELATED LETTERS LETTERS TO THE EDITOR NIXON THE ENDLESS DEBATE WSJ MAY 16 1994 9404270057 YY94 MM05 9405160036 940425 THE MAN WHO NEVER QUIT BY STEPHEN E AMBROSE RICHARD MILHOUS NIXON 19131994 WANTED TO BE JUDGED BY WHAT HE ACCOMPLISHED BUT 200 YEARS FROM NOW WHEN HE WILL GET ONLY A PARAGRAPH OR TWO IN A HIGHSCHOOL HISTORY TEXTBOOK THE FIRST SENTENCE WILL READ RICHARD NIXON 37TH PRESIDENT RESIGNED FROM OFFICE BECAUSE OF THE WATERGATE SCANDAL IT WILL GO ON TO NOTE HIS OPENING TO CHINA HIS PIONEERING EFFORTS AT ESTABLISHING DETENTE AND HIS ROLE IN ENDING THE AMERICAN INVOLVEMENT IN VIETNAM THE BIG THREE OF HIS LONG LIST OF FOREIGN POLICY ACHIEVEMENTS BUT THE WATERGATE COVERUP THE RESIGNATION AND THE ACCEPTANCE OF A PARDON FOR HIS DEEDS WILL ALWAYS COME FIRST STILL WATERGATE WILL LOOK DIFFERENT AS TIME PASSES INDEED IT ALREADY DOES AS THE VARIOUS SCANDALS OF THE PAST 20 YEARS HAVE PUT WATERGATE IN A SOMEWHAT DIFFERENT PERSPECTIVE THERE CAN BE NO DIFFERENT PERSPECTIVE ON THE FACT OF RESIGNATION HOWEVER THIS ACT MADE MR NIXON UNIQUE AMONG OUR PRESIDENTS STILL THERE IS A GREAT DEAL MORE TO MR NIXON THAN WATERGATE HE IS THE PREMIER AMERICAN POLITICIAN OF THE SECOND HALF OF THE 20TH CENTURY HE WAS AT OR NEAR THE CENTER OF EVENTS FROM 1948 UNTIL HIS DEATH NO ONE ELSE HAD HIS LONGEVITY NOT EISENHOWER NOT DE GAULLE NOT CHURCHILL HIS POLICIES WERE MIDDLEOFTHEROAD HE SPOKE TO AND FOR THE MIDDLE CLASS WHENCE HE CAME YET MORE THAN ANY OTHER PRESIDENT MR NIXON PROVOKED AN EXTREME EMOTIONAL RESPONSE AN ALARMING NUMBER OF AMERICANS ACTIVELY HATED HIM ABOUT HALF THE PEOPLE ADMIRED AND IDENTIFIED WITH HIM PASSIONATELY BUT NOT EVEN HIS ADMIRERS LOVED HIM AS A COLLEGE CLASSMATE PUT IT HE WASN'T THE KIND OF GUY YOU WANTED TO GO BACKPACKING WITH HE WAS THE KIND OF GUY YOU VOTED FOR FROM JUNIOR HIGH SCHOOL THROUGH LAW SCHOOL MR NIXON RAN FOR EVERY PRESIDENCY AVAILABLE AND WON EVERY TIME MR NIXON WAS THE MOST PARTISAN OF OUR POLITICIANS IT WAS ALWAYS HIS AIM TO DIVIDE AND HE WAS SKILLFUL AT DOING SO FROM HIS FIRST CAMPAIGN FOR CONGRESS IN 1946 WHEN HE ACCUSED HIS OPPONENT OF HAVING COMMUNIST SUPPORT THROUGH HIS 1950 CAMPAIGN FOR THE SENATE WHEN HE CALLED HIS OPPONENT HELEN DOUGLAS THE PINK LADY RIGHT DOWN TO HER UNDERWEAR TO HIS VICEPRESIDENTIAL CAMPAIGN IN 1952 WHEN HE CALLED DEMOCRATIC CANDIDATE ADLAI STEVENSON A GRADUATE OF DEAN ACHESON'S COWARDLY COLLEGE OF COMMUNIST CONTAINMENT MR NIXON HAD ALWAYS BEEN A DEEPLY SUSPICIOUS AND CYNICAL MAN HIS CLOSE LOSS TO JOHN KENNEDY IN 1960 IN A BITTERLY CONTESTED ELECTION SWELLED HIS RESENTMENT AND ANGER IN 1962 HE LOST A CAMPAIGN FOR GOVERNOR OF CALIFORNIA THE MORNING AFTER HE TOLD THE PRESS JUST THINK WHAT YOU'LL BE MISSING GENTLEMEN YOU WON'T HAVE NIXON TO KICK AROUND ANYMORE THE REPORTERS RESPONDED BY DECLARING MR NIXON POLITICALLY DEAD WHAT MR NIXON KNEW AND THE REPORTERS DIDN'T WAS THAT MOST PEOPLE AGREED WITH HIM ABOUT THE IRRESPONSIBLE KNEEJERK LIBERAL PRESS WITHIN MINUTES OF THE LAST PRESS CONFERENCE HE BEGAN PLANNING HIS NEXT CAMPAIGN IT CAME IN 1968 WHEN HE DEFEATED HUBERT HUMPHREY AND GEORGE WALLACE THE DOMINANT ISSUE OF HIS FIRST ADMINISTRATION WAS VIETNAM MR NIXON SET OUT TO EXTRACT THE AMERICAN TROOPS WITHOUT SETTING OFF A CIVIL WAR WITHIN THE US AND WITHOUT HANDING OVER SOUTH VIETNAM TO THE COMMUNISTS HE ACHIEVED THE FIRST OBJECTIVE AND MIGHT HAVE ACHIEVED THE SECOND HAD IT NOT BEEN FOR WATERGATE IT WAS CHARGED THAT THE DEAL HE ACCEPTED IN 1973 COULD HAVE BEEN HAD IN 1969 WE CAN'T KNOW WE DO KNOW THAT IT IS ALMOST IMPOSSIBLE FOR A 20TH CENTURY LEADER FROM KAISER WILHEM II TO GORBACHEV TO LOSE A WAR AND STAY IN POWER MR NIXON'S SUPREME MOMENT CAME IN THE 1972 ELECTION WHEN HE WON WITH A LANDSLIDE BUT WITHIN THREE MONTHS THE WATERGATE SCANDAL WAS BREAKING AND OVER THE NEXT YEARANDAHALF HE WENT THROUGH AGONY MUCH OF IT SELFINFLICTED EVENTUALLY HE WAS DRIVEN FROM OFFICE IN DISGRACE BUT LIKE A CORK NO MATTER HOW MANY TIMES HE GOT PUSHED DOWN HE POPPED UP AGAIN THAT WAS ONE OF THE REASONS SO MANY PEOPLE ADMIRED HIM SO MUCH SOME SAID HE WAS SO PERSISTENT BECAUSE HE HAD NO SHAME OTHERS RECOGNIZED IT WAS BECAUSE HE WAS SO TOUGH HE WORKED SO HARD HE KNEW SO MUCH AND HE WAS SUCH A GREAT RISKTAKER HE ONCE TOLD BOB GREENE YOU'VE GOT TO TAKE GREAT RISKS AND LOSE IF NECESSARY AND MAYBE LOSE TWICE OR THREE TIMES AND KEEP COMING BACK THAT'S THE SECRET ON HIS LAST DAY IN OFFICE MR NIXON TOLD PRESS SECRETARY RON ZIEGLER A STORY ABOUT THE TIME HE WAS RUNNING A ONEMILE RACE IN SCHOOL AND THERE WERE 50 YARDS LEFT AND ONLY TWO COMPETITORS REMAINING WITH NOTHING AT STAKE BUT NEXT TO LAST PLACE STILL HE SPRINTED THOSE LAST 50 YARDS I HAVE NEVER QUIT BEFORE IN MY LIFE HE CRIED OUT YOU DON'T QUIT INSTEAD OF QUITTING HE SET OUT TO REHABILITATE HIMSELF TO A LARGE EXTENT HE SUCCEEDED WHAT NEARLY EVERYONE THOUGHT IMPOSSIBLE IN 1974 MR NIXON HAD ACHIEVED BY 1994 HE WAS A RESPECTED ELDER STATESMAN LIKE ALL HIS PREVIOUS CAMPAIGNS HIS LAST CAMPAIGN WAS CAREFULLY THOUGHT OUT HE BEGAN WITH HIS MEMOIRS BIG ENGROSSING FULL OF SURPRISES ADMITTING NO WRONGDOING A HUGE SUCCESS THEN HE WENT ON TELEVISION TO ANSWER QUESTIONS FROM DAVID FROST THE ONLY TIME HE ANSWERED QUESTIONS ON WATERGATE HE MADE HIS FIRST PUBLIC APPEARANCE IN A SMALL KENTUCKY TOWN HIS NEXT IN BILOXI MISS AND WAS REWARDED WITH LARGE ENTHUSIASTIC CROWDS FROM THERE HE MOUNTED A SERIES OF WELLRECEIVED FOREIGN TRIPS HE EVEN WENT BEFORE HIS FORMER TORMENTORS THE PRESS FOR SPEECHES AND QUESTIONS AND ANSWERS BUT HE NEVER CRAWLED ALL HIS POLITICAL LIFE HE BRAGGED THAT HE SCORNED THE EASY WAY WHICH UPON EXAMINATION ALWAYS PROVED TO BE THE WAY OF THE WEAK OF THE LIBERAL OR OF THE UNINFORMED OR SO HE SAID BUT AFTER AUG 9 1974 HE REALLY DID REJECT THE EASY WAY HE COULD HAVE RESURRECTED HIMSELF MUCH SOONER HAD HE ADMITTED WRONGDOING AND APOLOGIZED FOR IT THE AMERICAN PEOPLE YEARNED TO FORGIVE HIM BUT HE WOULD NOT LET THEM HIS PRIDE KEPT HIM FROM SAYING HE WAS SORRY BECAUSE HE WASN'T SORRY HE HAD DONE NOTHING HE WAS ASHAMED OF HE DID NOT WANT FORGIVENESS OR SYMPATHY OR UNDERSTANDING HE WANTED RESPECT HE EARNED IT THE HARD WAY MR NIXON'S WAY HOW WILL HISTORY RATE HIM HE WANTED TO BE KNOWN AS A GREAT PRESIDENT AND HE CAME CLOSE BUT HE DIDN'T MAKE IT STILL HIS REPUTATION IS SURE TO GO UP OVER TIME JUST AS HARRY TRUMAN'S HAS RISEN WHAT WILL STAND OUT ABOUT MR NIXON IS HIS FOREIGN POLICY OF COURSE WHERE HE WAS INNOVATIVE AND INSIGHTFUL ON THE DOMESTIC FRONT THE STORY IS WHAT MIGHT HAVE BEEN IN HIS SECOND TERM MR NIXON PROPOSED PROGRAMS THAT HE DARED TO CALL NOTHING LESS THAN A NEW AMERICAN REVOLUTION HIS PROGRAM INCLUDED GOVERNMENT REORGANIZATION HEALTH INSURANCE FOR ALL MORE REVENUE SHARING JUST AT THE TIME THE CITIES WERE LOSING THEIR TAX BASE AN EXPANDED STUDENT LOAN PROGRAM ENERGY INDEPENDENCE FOR THE US A BALANCED BUDGET ENVIRONMENTAL REPAIR WELFARE REFORM AND A MYRIAD OF OTHER PROGRAMS THAT ARE STILL BEING DEBATED TWO DECADES LATER MR NIXON WANTED TO BECOME RICHARD THE GREAT HE WANTED NOTHING SHORT OF WORLD PEACE AND A PROSPEROUS HAPPY AMERICA HE WAS BROUGHT DOWN BY HIS OWN HUBRIS BY HIS OWN ACTIONS BY HIS OWN CHARACTER THIS IS TRAGEDY WHENEVER MR NIXON LAPSED INTO SELFDESCRIPTION HE TALKED ABOUT STRUGGLE IT WAS STRUGGLE THAT GAVE LIFE MEANING NOT VICTORY GIVEN THAT HE NEVER ABANDONED THE STRUGGLE IT CAN BE ASSUMED THAT HE DIED A HAPPY MAN A MAN AT PEACE WITH HIMSELF MR AMBROSE IS THE AUTHOR OF A THREEVOLUME BIOGRAPHY OF RICHARD NIXON SEE RELATED LETTERS LETTERS TO THE EDITOR NIXON THE ENDLESS DEBATE WSJ MAY 16 1994 9404250044 YY94 MM05 9405130177 940425 HOPE FOR TOMORROW P&G AIMS TO SALVAGE SOAP OPERAS BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL ONCE UPON A TIME THE BEST WAY TO SELL SOAP WAS BETWEEN THE SOBS AND SIGHS OF AN AFTERNOON SOAP OPERA NOW PROCTER & GAMBLE CO THE ONLY CONSUMERPRODUCTS COMPANY PRODUCING SOAP OPERAS IS THE ONE CRYING FORMER FANS ARE INCREASINGLY PLUGGED INTO TITILLATING TALK SHOWS AND VARIED CABLE FARE THE COMPANY'S THREE SOAPS ANOTHER WORLD AS THE WORLD TURNS AND GUIDING LIGHT AREN'T SPICY ENOUGH FOR MANY CURRENT VIEWERS P&G ONCE ADVERTISED ONLY ON ITS OWN SOAPS BUT NOW PITCHES BRANDS ON RIVAL SHOWS P&G PIONEERED SOAPS TO PEDDLE ITS BRANDS ON THE RADIO 62 YEARS AGO WITH THE PUDDLE FAMILY AND MA PERKINS IT TOOK THE CONCEPT TO TELEVISION IN 1950 WITH THE FIRST HUNDRED YEARS WHICH LASTED ONLY NINE MONTHS AND AGAIN IN 1951 WITH THE MORE DURABLE SEARCH FOR TOMORROW IVORY TIDE AND OXYDOL AND NEARLY EVERY OTHER HOUSEHOLD PRODUCT MADE BY P&G INVADED AMERICA'S FAMILY ROOMS THROUGHOUT THE AFTERNOON AS VIEWERS STAYED TUNED TO AN EVIL SISTER SEDUCING A BROTHERINLAW AT ONE TIME THE COMPANY PRODUCED SEVEN DAYTIME TV SERIALS TODAY P&G IS TRYING TO SALVAGE SOAPS AS A VIABLE MARKETING TOOL BY SHUFFLING PRODUCTION MANAGEMENT AND ADDING YOUNGER ACTORS AND STEAMY SEX SCENES TO APPEAL TO TEENAGERS AND COLLEGE STUDENTS IF THAT DOESN'T WORK MAYBE SOAPOPERA FASHION WILL THE COMPANY HIRED DMB&B WORLDWIDE COMMUNICATIONS INC TO LICENSE THE NAMES AND LOGOS OF ITS SOAPS TO JEWELRY CLOTHING AND FRAGRANCE MAKERS MAYBE A LINE OF AS THE WORLD TURNS HANDBAGS WILL ATTRACT NEW WATCHERS P&G HOPES AND MAYBE NOT AFTER ALL MOST VIEWERS ARE CLOSET FANS RELUCTANT TO FLAUNT THEIR FONDNESS FOR SOAPS ON HATS AND JACKETS IT'S NOT A POINT OF PRIDE THAT YOU WATCH A SOAP OPERA SAYS MARKETRESEARCH CONSULTANT JUDITH LANGER I SENSE A FEELING OF DESPERATION ON THE PART OF TELEVISION SHOWS IN GENERAL TO PROMOTE THEIR NAMES TO GET PEOPLE TO WATCH BUT THESE ARE DESPERATE TIMES FOR THE SOAPOPERA INDUSTRY MORE SOAPS HAVE GONE OFF THE AIR IN RECENT YEARS THAN HAVE BEEN REPLACED BY NEW ONES SAYS SOCIOLOGIST LEE HARRINGTON OF MIAMI UNIVERSITY OF OHIO P&G'S CASUALTIES INCLUDE SEARCH FOR TOMORROW AND THE EDGE OF NIGHT MURIEL GOLDSMAN CANTOR A SOCIOLOGIST AND SOAPOPERA EXPERT BELIEVES SOAPS MIGHT SOMEDAY DIE OUT ALTOGETHER AS VIEWERS SWITCH TO THE REALLIFE DRAMAS OFFERED BY THE TALK SHOWS AS AWFUL AS THEY ARE MS CANTOR SAYS THE TALK SHOWS ARE ADDICTIVE TOO THEY'RE SO SENSATIONAL THEY MOVE SO MUCH QUICKER THAN SOAPS AND YOU FEEL YOU'RE GETTING AN INSIGHT INTO OTHER PEOPLE'S LIVES SOAPS ONCE HAD A CAPTIVE AUDIENCE HOMEBOUND WOMEN WITH ONE EYE ON THE KIDS AND ONE ON THE TV IT WAS EASY TO GET HOOKED ON TALES OF INTERTWINED FAMILIES GLAMOROUS COUPLES ENGAGING IN PROLONGED MATING RITUALS AND CHARACTERS BELIEVED DEAD MAKING DRAMATIC REAPPEARANCES MANY WOMEN WERE BORED SAYS MS CANTOR AND THEY EMBRACED THE VICARIOUS EXCITEMENT OF THE SOAPS MARKETERS BOMBARDED THESE WOMEN WITH PLUGS FOR DIAPERS DISH SOAP AND DETERGENT BUT MANY WOMEN ARE WORKING FAR FROM THEIR TV SETS DURING THE DAY COSTING SOAPS MANY VIEWERS THE VCR HAS DONE EVEN MORE DEVASTATION TO THE INDUSTRY WHILE MANY WOMEN STILL WATCH SOAPS THEY USE VCRS TO TAPE THEM AND USE THE SAME TECHNOLOGY TO FASTFORWARD ADS IN PURSUIT OF YOUNG VIEWERS TO REPLACE THE DEPARTED THE SOAPS HAVE BEEN CREATING MORE YOUTHORIENTED PLOTS SOME SHOWS HAVE SPECIAL SUMMERTIME STORY LINES GEARED TO KIDS ON VACATION WHO WANT TO WATCH ACTORS THEIR AGE DEAL WITH DATING DILEMMAS THE IDEA IS TO SNARE TEENAGERS AND KEEP THEM AS THEY BECOME ADULTS AND IT SEEMS TO BE WORKING AT MANY UNIVERSITIES STUDENTS OFTEN SCHEDULE CLASSES AROUND THEIR FAVORITE SOAPS AT BOWLING GREEN STATE UNIVERSITY THE MEN'S HOCKEY TEAM WATCHES DAYS OF OUR LIVES' SAYS RACHEL ELDRIDGE A GRADUATE STUDENT THERE WHO TEACHES A POPULARCULTURE COURSE THAT INCLUDES A SECTION ON SOAPS INDEED THERE IS A BURGEONING MALE AUDIENCE MEN NOW CONSTITUTE 20 OF ALL SOAP VIEWERS SAYS MS HARRINGTON BECAUSE MORE ARE AT HOME DURING THE DAY AS A RESULT OF EARLY RETIREMENTS LAYOFFS AND GROWING NUMBERS OF STAYATHOME DADS AND IN SOME OFFICE LUNCHROOMS MEN GATHER DAILY TO WATCH POPULAR SHOWS LIKE THE YOUNG AND THE RESTLESS OR ALL MY CHILDREN THESE CHANGES HAVE FORCED MARKETERS TO ALTER THE MIX OF PRODUCTS ADVERTISED ON SOAPS ONCE ONLY KITCHEN OR BATHROOM PRODUCTS WERE ADVERTISED BECAUSE IT WAS ASSUMED ONLY HOMEMAKERS WATCHED SOAPS MS HARRINGTON SAYS NOW MARKETERS LIKE P&G AIM AT TEENS WITH ADS FOR ALWAYS FEMININEPROTECTION PRODUCTS AND COVER GIRL COSMETICS AND PLY OLDER VIEWERS WITH ADS FOR METAMUCIL MOREOVER AUTO MAKERS RECOGNIZING THE GROWING FINANCIAL MIGHT OF WOMEN AND THE PRESENCE OF MALE VIEWERS ARE ADVERTISING MORE ON SOAPS AND OTHER DAYTIME PROGRAMS TO APPEAL TO A BROAD SPECTRUM OF VIEWERS P&G INSISTS IT AVOIDS SENSATIONAL PLOT LINES STICKING TO MIDDLE AMERICA KINDS OF SHOWS AND SCRUTINIZING SCRIPTS TO AVOID TAKING STANDS ON TOUCHY TOPICS LIKE ABORTION IN FACT P&G'S SOAPS AREN'T AS GLITZY AS THOSE OF SOME COMPETITORS THEY'RE MORE DOWNTOEARTH THE OUTFITS ARE NOT AS CUTTINGEDGE AND THE ACTORS ARE MORE NORMALLOOKING THOUGH THEY'RE ALL BETTER THAN AVERAGE SAYS LYNN LEAHEY EDITOR OF SOAP OPERA DIGEST THE RELAXED STUDIO IN BROOKLYN WHERE P&G TAPES 30YEAROLD ANOTHER WORLD IS A WORLD AWAY FROM THE COMPANY'S BUTTONDOWN CINCINNATI HEADQUARTERS ACTORS AND PRODUCTION STAFFERS WEAR RED AIDS RIBBONS ON THEIR LAPELS AND MEN WEAR EARRINGS AND PONYTAILS ONE OF THE BETTERKNOWN PONYTAILS BELONGS TO ACTOR CHARLES KEATING ALIAS CARL HUTCHINS WHO HAS METAMORPHOSED FROM EVIL TO NEARLY SAINTLY AS HAPPENS ALL THE TIME ON SOAPS DURING A BREAK MR KEATING SAYS HE BELIEVES THE RATINGS NUMBERS ARE MOVING UP BIT BY BIT THERE ARE SOME POSITIVE SIGNS FOR SOME OF P&G'S SHOWS GUIDING LIGHT RECENTLY GARNERED MORE DAYTIME EMMY NOMINATIONS THAN ANY OTHER SOAP QUALITY DOESN'T ALWAYS EQUAL RATINGS IN SOAPS SAYS MS LEAHEY EDITOR OF SOAP OPERA DIGEST WHEN THE AUDIENCE DROPS OFF IT TAKES A LONG LONG TIME TO GET THOSE PEOPLE BACK SEE RELATED LETTER LETTERS TO THE EDITOR WATCHING SOAP OPERAS PERCHANCE TO SLEEP WSJ MAY 13 1994 9404250061 YY94 MM05 9405130070 940420 ON THE MENA TRAIL BY EDWARD JAY EPSTEIN CBS NEWS RECENTLY FOCUSED TWO SEGMENTS OF ITS INVESTIGATIVE EYE ON AMERICA ON ALLEGED GOINGSON IN A REMOTE PLACE IN RURAL ARKANSAS MENA POPULATION 5600 THIS FORLORN TOWN MADE IT ON TO THE BIGTIME GEOMEDIA MAP BECAUSE OF THE INTERSECTION OF A NUMBER OF MYSTERIES FIRST BACK IN THE REAGAN YEARS THERE WAS THE CIA CONNECTION LANDING STRIPS OUTSIDE OF MENA WERE USED BY THE REAGAN ADMINISTRATION TO STAGE THE CLANDESTINE FLIGHTS TO MEXICO AND CENTRAL AMERICA THAT AIRDROPPED WEAPONS TO THE CONTRAS THIS 1980S ACTIVITY WAS SUPPOSEDLY SUPERVISED BY THENLT COL OLIVER NORTH NOW RUNNING FOR THE GOP SENATE NOMINATION IN VIRGINIA SECOND THERE IS THE COCAINE CONNECTION ON THEIR RETURN FLIGHTS FROM NICARAGUA AND MEXICO PILOTS ALLEGEDLY SMUGGLED BACK INTO MENA MORE THAN 20 TONS OF COCAINE THIS LED TO THE MENA COMPLEX BEING INVESTIGATED IN 1984 BY THE ARKANSAS STATE POLICE ONE OF THE PILOTS IMPLICATED IN THIS SMUGGLING WAS AN ENTREPRENEUR NAMED BARRY SEAL WHO WAS ALLOWED TO CONTINUE HIS DRUG IMPORTING ACTIVITIES AS A GOVERNMENT INFORMANT HE WAS GUNNED DOWN BY HIT MEN REPORTEDLY HIRED BY COLOMBIAN DRUG DEALERS THIRD THERE IS THE MONEY LAUNDERING CONNECTION THE CASH GENERATED BY SECRET ARMS DELIVERIES AND DRUG SALES REPORTEDLY 9 MILLION A WEEK LED TO A SCHEME IN WHICH LOCAL BUSINESSES AND ARKANSAS BANKS WERE USED TO ILLEGALLY CONVERT THE PROCEEDS INTO WHAT APPEARED TO BE ORDINARY BUSINESS TRANSACTIONS THIS IN TURN LED TO AN INTERNAL REVENUE SERVICE INVESTIGATION OF THE COMPANIES INVOLVED FOURTH THERE IS THE COVERUP CONNECTION DESPITE ALL THE EVIDENCE DEVELOPED BY THE STATE POLICE AND IRS OF GUN SMUGGLING DRUG SMUGGLING AND MONEY LAUNDERING THE REAGAN AND BUSH JUSTICE DEPARTMENTS FAILED TO BRING A CASE OR EVEN PRESENT IT TO A GRAND JURY THESE MYSTERIES AS WELL AS THE 20 TONS OF COCAINE MIGHT HAVE BECOME JUST ANOTHER FOOTNOTE IN THE MORASS KNOWN AS THE IRANCONTRA SCANDAL IF NOT FOR THE COINCIDENCE THAT THE GOVERNOR OF ARKANSAS AT THE TIME WAS BILL CLINTON THE ATTEMPT TO CONNECT PRESIDENT CLINTON TO THE MENA AFFAIR EMERGES IN THE NEW BOOK COMPROMISED CLINTON BUSH AND THE CIA BY TERRY REED AND JOHN CUMMINGS MR REED CLAIMS TO HAVE FIRSTHAND KNOWLEDGE OF THE CONSPIRACY BOTH THROUGH HIS WORK IN TRAINING CONTRA PILOTS AT MENA AND HIS ASSOCIATION WITH BARRY SEAL MR CUMMINGS IS A WELLRESPECTED REPORTER AT NEW YORK NEWSDAY WHOSE PREVIOUS SPECIALTY WAS THE MAFIA THEIR BOOK ATTEMPTS TO GRAFT THE 1980S REAGANCONTRA CONSPIRACY ONTO THE FINANCIAL AND POLITICAL ACTIVITIES OF MR CLINTON AND HIS ARKANSAS ASSOCIATES AND IN THE HYBRID PROVIDE AS THE COVER PROMISES THE BIGGER STORY BEHIND WHITEWATER IF TRUE IT WOULD INDEED BE A BIG STORY GOV CLINTON THE QUINTESSENTIAL ANTICOLD WARRIOR MAKING A SECRET DEAL WITH THE REAGAN COLD WARRIORS TO SUPPORT THE CONTRAS BUT THE BOOK OFFERS NO CREDIBLE EVIDENCE OF SUCH AN ARRANGEMENT DESPITE THE PROVOCATIVE SUBTITLE THE BOOK PROVIDES NO LINK BETWEEN MR CLINTON AND MR BUSH MR CLINTON AND THE CIA NOR FOR THAT MATTER MR CLINTON AND MR REAGAN INDEED THE ONLY BASIS FOR BELIEVING MR CLINTON EVEN KNEW ABOUT MENA IS MR REED'S UNCONFIRMED CLAIM TO HAVE SIGHTED THE GOVERNOR AT A MEETING THAT INCLUDED OLLIE NORTH AND OTHER PROMINENT IRANCONTRA FIGURES A CLAIM THAT I DO NOT BELIEVE IS CREDIBLE THE AUTHORS ALSO TRY TO CONNECT MR CLINTON THROUGH HIS ASSOCIATES THE ARGUMENT IS THAT ASSOCIATES OF HIS OR ASSOCIATES OF THESE ASSOCIATES WERE INVOLVED IN DRUGS ARMS AND MONEY LAUNDERING AT MENA AND THEREFORE MR CLINTON HIMSELF MUST HAVE BEEN PRIVY TO IT FOR EXAMPLE MR CLINTON'S HALFBROTHER ROGER WAS EMPLOYED BY A FINANCIER WHO PURCHASED COCAINE FROM SOMEONE CONNECTED TO MENA THE PROBLEM WITH SUCH GUILT BY ASSOCIATION IS THAT ARKANSAS IS A SMALL PLACE ESPECIALLY WHEN IT COMES TO LAW FIRMS INVESTMENT FIRMS AND POLITICIANS MOST ARKANSANS ARE SEPARATED BY FAR FEWER THAN SIX DEGREES OF SEPARATION IT IS NOT NECESSARILY INCRIMINATING TO KNOW SOMEONE WHO KNOWS SOMEONE TO BE SURE ILLICIT THINGS HAPPENED AT MENA AND THE JUSTICE DEPARTMENT TOOK NO ACTION IF THIS WAS A DELIBERATE MISPRISION OF A FELONY IT MAY HAVE PROCEEDED FROM THE JUSTICE DEPARTMENT'S RELUCTANCE TO BRING A CASE AGAINST CONTRASUPPORT ACTIVITIES THAT WERE APPROVED BY THE PRESIDENT AND THE CIA DIRECTOR AFTER ALL WHY SHOULD THE REAGAN ADMINISTRATION HAVE PROSECUTED ITSELF WHEN IT COULD LEGITIMATELY EVADE THE ISSUE BY CITING NATIONAL SECURITY NATIONAL SECURITY CONSIDERATIONS CERTAINLY ARE WHAT DAMPED A GENERAL ACCOUNTING OFFICE EFFORT AT INVESTIGATING MENA THE POSSIBILITY THAT THE FEDERAL GOVERNMENT WOULD RAISE SUCH A CONCERN MIGHT ALSO HAVE REASONABLY DISCOURAGED ARKANSAS PROSECUTORS AFTER THE SMUGGLER SEAL WAS SHOT TO DEATH IT IS NOT CLEAR THAT THERE WAS ANYONE TO BRING A CASE AGAINST SO WHY WASTE RESOURCES WHATEVER REASON THE CASE WASN'T PURSUED NO ONE HAS SAID THAT MR CLINTON USED HIS GUBERNATORIAL POWERS TO QUASH LEGAL PROCEEDINGS WHAT THE MENA CONNECTION BOILS DOWN TO IS SPECULATION THAT THE MONEY TRAIL FROM MENA IF IT IS NOT A DEAD END COULD LEAD SOMEWHERE IN THE UNCHARTED WILDERNESS OF WHITEWATER UNFORTUNATELY THE PRESENT EXPOSE FURNISHES NO RELIABLE COMPASS MR EPSTEIN IS THE AUTHOR OF DECEPTION THE INVISIBLE WAR BETWEEN THE KGB AND THE CIA AND OTHER BOOKS ON ESPIONAGE SEE RELATED LETTER LETTERS TO THE EDITOR STILL A STRONG SCENT ON THE MENA TRAIL WSJ MAY 3 1994 SEE RELATED LETTER LETTERS TO THE EDITOR SECRET MEETINGS IN ARKANSAS WSJ MAY 13 1994 9404200085 9405030043 YY94 MM05 9405130013 940428 HEALTH INSURANCE FOR ALL BY ELIZABETH MCCAUGHEY HEALTH INSURANCE IS A KITCHEN TABLE TOPIC PEOPLE WITHOUT INSURANCE ARE SCARED THAT ONE SERIOUS ILLNESS COULD WIPE OUT THEIR SAVINGS AND EVEN THEIR HOMES FAMILIES WITH INSURANCE SEE PREMIUMS GETTING UNAFFORDABLE BUT ALSO WORRY THAT THE CLINTON BILL WOULD MEAN RATIONING RESTRICTED CHOICES AND RED TAPE HERE IS A PROPOSAL TO OFFER HEALTH INSURANCE TO ALL FAMILIES WHO WANT IT NO MATTER HOW LITTLE THEY CAN PAY IT WOULD NOT ADD A SINGLE DOLLAR TO THE FEDERAL BUDGET SO FAR NONE OF THE HEALTH BILLS IN CONGRESS DOES EVERYTHING PROPOSED HERE THE FIRST STEP TOWARD UNIVERSAL COVERAGE IS TO ENABLE PEOPLE TO BUY AFFORDABLE NOFRILLS POLICIES TO COVER ONLY THE DEVASTATING BILLS THAT MOUNT UP IF THEY BECOME SERIOUSLY ILL IN MANY STATES THIS IS NOT POSSIBLE LEGISLATORS HAVE PUSHED THE PRICE OF INDIVIDUAL AND SMALLGROUP POLICIES OUT OF REACH OF LOW AND MIDDLEINCOME WORKERS BY REQUIRING THAT POLICIES INCLUDE COSTLY BENEFITS SUCH AS TREATMENT FOR DRUG ABUSE 19 STATES AND ALCOHOLISM 29 STATES AND THE SERVICES OF CHIROPRACTORS 45 STATES ACUPUNCTURISTS THREE STATES NATUROPATHS TWO STATES AND EVEN IN MINNESOTA MARRIAGE COUNSELING AND HAIRPIECES THE 1980S THE FIRST DECADE EVER TO SEE AN INCREASE IN THE PERCENTAGE OF THE POPULATION THAT IS UNINSURED WAS ALSO THE DECADE IN WHICH STATE LAWMAKERS DOUBLED THE NUMBER OF BENEFITS THAT CUSTOMERS ARE COMPELLED TO BUY WHETHER OR NOT THEY WANT THEM AND CAN AFFORD THEM MANY CANNOT INDIVIDUALS BUYING THEIR OWN POLICIES HAVE BEEN HIT HARDEST IN THE '80S THE NUMBER OF PEOPLE INSURED UNDER INDIVIDUAL POLICIES PLUNGED TO 29 MILLION FROM 41 MILLION THE CAUSE WAS RISING PREMIUMS KEEPING INSURANCE AFFORDABLE IS KEY ALMOST ALL UNINSURED ADULTS ARE EITHER BETWEEN JOBS OR WORKING AT LOWWAGE JOBS THREEQUARTERS ARE COVERED AGAIN WITHIN A YEAR USUALLY THROUGH WORK WHAT THEY NEED IN THE MEANTIME IS LOWCOST PROTECTION NOT A GOLDPLATED POLICY LOADED WITH EXTRAS THEY CAN'T AFFORD EVEN FOR THOSE WHO CAN AFFORD A GOLDPLATED POLICY LESS INSURANCE IS BETTER A NOFRILLS HIGHDEDUCTIBLE POLICY ENCOURAGES PEOPLE TO AVOID NEEDLESS DUPLICATION OF TESTS AND OTHER WASTE PEOPLE USED TO PAY OUT OF POCKET FOR HALF OF THEIR MEDICAL EXPENSES NOW THEY PAY FOR LESS THAN A QUARTER THAT WAY PAYING OUT OF POCKET ALSO SAVES MONEY BY ELIMINATING THE ADMINISTRATIVE COSTS OF INSURANCE WHEN YOU PREPAY AN INSURANCE COMPANY FOR ROUTINE MEDICAL CARE YOU ARE PAYING WHAT THE DOCTOR'S FEE WILL BE PLUS WHAT IT WILL COST THE INSURER TO PROCESS YOUR CLAIM A COST THAT CAN ADD 30 TO A SMALL MEDICAL BILL PAYING YOUR DOCTOR DIRECTLY FOR ROUTINE SERVICES REDUCES COSTS WITHOUT ANY REDUCTION IN QUALITY THE CLINTON BILL WOULD MAKE EVERYONE BUY A A GOVERNMENTDESIGNED BENEFITS PACKAGE LOADED WITH REQUIREMENTS MANY STATES HAVE MADE THAT MISTAKE NATIONAL HEALTH REFORM SHOULD NOT REPEAT IT FAIR PRICING IS ALSO KEY ALMOST HALF OF UNINSURED ADULTS ARE UNDER 30 THE AVERAGE 25YEAROLD MAN NEEDS ABOUT 560 OF HEALTH CARE A YEAR THE AVERAGE 55YEAROLD MAN NEEDS 2345 YOUNG PEOPLE SHOULD BE CHARGED LOW PREMIUMS THAT REFLECT THEIR GENERALLY LOW MEDICAL NEEDS THAT DOESN'T MEAN THAT MIDDLEAGED PEOPLE WITHOUT THE MEANS TO PAY HIGHER PREMIUMS SHOULD BE LEFT TO SINK OR SWIM BUT PROVIDING TARGETED SUBSIDIES FOR PEOPLE WHO CANNOT AFFORD THEIR PREMIUMS IS FAR PREFERABLE TO ARTIFICIALLY LOWERING THE PREMIUMS OF ALL MIDDLEAGED PEOPLE BY COMPELLING THE YOUNG TO PAY MORE A SYSTEM CALLED COMMUNITY RATING OR ONEPRICEFORALL INSURANCE WHEN YOU CHARGE YOUNG AND OLD THE SAME RATE THE YOUNG SEE THAT INSURANCE IS A BAD BUY AND OPT OUT THE FAILURE OF COMMUNITY PRICING IS OBVIOUS IN NEW YORK STATE LAST APRIL LAWMAKERS REQUIRED INSURERS TO ADOPT COMMUNITY PRICING FOR ALL INDIVIDUAL AND SMALLGROUP POLICIES IN THE NEXT 10 MONTHS COMMUNITY PRICING PUSHED UP THE AVERAGE PREMIUM FOR A 30YEAROLD MAN 81 GROUP RATES FOR SMALL BUSINESSES WITH RELATIVELY YOUNG WORKERS SHOT UP 113 A TWOADULT FAMILY IN NEW YORK CITY NOW PAYS ON AVERAGE 84 A MONTH MORE FOR HEALTH COVERAGE THE COMMUNITY PRICING LAW HAS FAILED TO PRODUCE ANY INCREASE IN THE NUMBER OF INSURED NEW YORKERS INSTEAD IT HAS MADE INSURANCE LESS AFFORDABLE FOR YOUNG AND LOWINCOME WORKERS THE CLINTON BILL WOULD MAKE THE WHOLE COUNTRY ADOPT COMMUNITY PRICING MOST OF THE OTHER HEALTH BILLS IN CONGRESS ALLOW INSURERS TO VARY PREMIUMS BY AGE THOUGH NOT BY MEDICAL HISTORY CHARGING THE YOUNG LESS THE WAY TO MAKE INSURANCE UNIVERSALLY AFFORDABLE IS TO OFFER A FEDERAL SUBSIDY TO PEOPLE WHO DON'T HAVE THE MONEY TO PAY PREMIUMS THE CONGRESSIONAL BUDGET OFFICE REPORTS THAT IT IS POSSIBLE TO PROVIDE SUCH A SUBSIDY WITHOUT ADDING A SINGLE DOLLAR TO THE FEDERAL BUDGET BY CONVERTING THE PRESENT TAX EXCLUSION FOR EMPLOYERPROVIDED HEALTH BENEFITS INTO A REFUNDABLE TAX CREDIT TARGETED TO FAMILIES AND INDIVIDUALS LEAST ABLE TO AFFORD COVERAGE ON THEIR OWN THE CBO SAYS THAT IN CONTRAST TO THIS REVENUENEUTRAL APPROACH THE CLINTON BILL WOULD INCREASE THE FEDERAL DEFICIT BY 70 BILLION DURING THE FIRST SIX YEARS IF YOU GET YOUR HEALTH COVERAGE THROUGH YOUR JOB YOU CURRENTLY DON'T PAY INCOME TAX OR SOCIAL SECURITY TAX ON THE VALUE OF THAT POLICY ON THE OTHER HAND IF YOU GO OUT AND BUY YOUR OWN INSURANCE YOU PAY FOR IT WITH AFTERTAX EARNINGS THIS IS UNFAIR SOME PEOPLE GET INSURANCE WITH PRETAX DOLLARS WHICH MAKES INSURANCE SEEM CHEAP OTHERS MUST PAY TAXES ON ALL THEIR COMPENSATION AND THEN BUY INSURANCE WITH AFTERTAX DOLLARS IF EMPLOYEES WERE REQUIRED TO PAY TAX ON THE HEALTH POLICIES THEY EARN AT WORK FEDERAL TAX REVENUES WOULD INCREASE BY 74 BILLION THAT 74 BILLION IS ENOUGH TO PROVIDE SUBSIDIES TO PEOPLE WHO NEED HELP BUYING COVERAGE IMAGINE THAT TO QUALIFY FOR A TAX CREDIT YOU MUST STAPLE PROOF OF INSURANCE TO YOUR APRIL 15 FILING YOU WOULD BE ELIGIBLE WHETHER YOU GOT YOUR COVERAGE AT WORK OR BOUGHT IT ON YOUR OWN IN GENERAL THE AMOUNT OF YOUR SUBSIDY WOULD BE BASED ON YOUR HOUSEHOLD INCOME NOT ON HOW MUCH YOUR POLICY COSTS THE TYPE OF POLICY WOULD BE YOUR CHOICE FOR PEOPLE WHO OWE TAXES THE SUBSIDY WOULD BE A REDUCTION CREDIT AGAINST THEIR TAX LIABILITY LOWINCOME EARNERS WOULD GET A CHECK FROM THE GOVERNMENT IT WOULD BE POSSIBLE THE CBO CONCLUDES TO PROVIDE THE POOREST WORKING FAMILIES WITH A 100 SUBSIDY FOR THEIR HEALTH INSURANCE COSTS UP TO 1775 FOR AN INDIVIDUAL 3750 FOR A HEAD OF HOUSEHOLD AND 4425 FOR A FAMILY WITH TWO WORKING ADULTS THAT'S ENOUGH FOR A NOFRILLS SERIOUSILLNESS POLICY UNDER THE CBO MODEL THE FAMILY WITH INCOME BETWEEN 20000 AND 29999 WOULD PAY AN AVERAGE OF 410 LESS AFTER THE CHANGES WHILE A FAMILY EARNING BETWEEN 40000 AND 49999 WOULD PAY ABOUT 180 MORE THE TAX BURDEN WOULD BE SHIFTED SOMEWHAT TO THE HIGHEST INCOME GROUPS BECAUSE THE TAX EXCLUSION WAS WORTH THE MOST TO THEM AND THEY ARE NOT ELIGIBLE FOR THE CREDIT BUT EVEN HIGHINCOME FAMILIES GENERALLY WOULD BE HIT WITH A SMALLER INCREASE UNDER THE CBO MODEL THAN UNDER THE CLINTON SCHEME WHICH WOULD IMPOSE STEEP MANDATORY PREMIUMS TO COVER THE HEALTH CARE COSTS OF THE POOR AND PROBABLY OTHER TAXES TO OFFSET PREDICTED DEFICITS THE CBO MODEL REPLACING THE TAX EXCLUSION WITH A TAX CREDIT WOULD ALSO ENCOURAGE EMPLOYEES WITH COVERAGE AT WORK TO INSIST ON REASONABLY PRICED INSURANCE IF EVERY DOLLAR OF HEALTH BENEFITS MEANS A DOLLAR LESS OF CASH WAGES SOME EMPLOYEES WILL WANT TO SWAP THEIR GOLDPLATED PLANS FOR NOFRILLS HIGHDEDUCTIBLE INSURANCE AND HIGHER TAKEHOME PAY MILLIONS WOULD SUDDENLY WAKE UP TO THE REAL COST OF HEALTH INSURANCE SAYS HEALTH POLICY EXPERT GRACEMARIE ARNETT FORTUNATELY THE TAX CHANGE WOULD HAVE NO IMPACT ON WHAT IT COSTS A BUSINESS TO EMPLOY WORKERS BECAUSE BOTH CASH WAGES AND HEALTH BENEFITS WOULD CONTINUE TO BE DEDUCTIBLE EXPENSES FOR EMPLOYERS UNLIKE PRESIDENT CLINTON'S BILL WHICH THE EMPLOYMENT POLICIES INSTITUTE ESTIMATES WOULD DESTROY 780000 TO 870000 MOSTLY LOWWAGE JOBS THE PROPOSAL MADE HERE WOULD COST NO JOBS THIS THREEPOINT PROPOSAL ACHIEVES AN IMPORTANT GOAL HEALTH INSURANCE FOR ANYONE WHO WANTS IT REGARDLESS OF ABILITY TO PAY FAMILIES WILL NOT HAVE TO RISK LOSING THEIR HOMES AND SAVINGS BECAUSE THEY CANNOT AFFORD STEEP PREMIUMS THE HEALTH BILL CONGRESS PASSES ALSO SHOULD INCLUDE TORT REFORM SO THAT DOCTORS NO LONGER WILL BE FORCED TO PRACTICE WASTEFUL DEFENSIVE MEDICINE AND INSURANCE REFORM SO THAT PEOPLE CAN CHANGE INSURERS WITHOUT LOSING PROTECTION FOR THEIR PREEXISTING CONDITIONS BUT THE DEFINING PRINCIPLE OF CONGRESS'S 1994 HEALTH BILL SHOULD BE AFFORDABLE INSURANCE FOR THOSE WHO WANT IT WITH SUBSIDIES FOR FAMILIES WHO NEED HELP PAYING FOR IT MS MCCAUGHEY IS A FELLOW AT THE MANHATTAN INSTITUTE SEE RELATED LETTERS LETTERS TO THE EDITOR AN UNFAIR PROPOSAL TO ELIMINATE UNFAIRNESS WSJ MAY 13 1994 9404280074 YY94 MM05 9405120127 940427 A DIFFERENT KIND OF WHISTLEBLOWER BY MAX BOOT KARL MERTZ IS A WHISTLEBLOWER BUT UNLIKE MOST MEMBERS OF THAT SPECIES HE'S NOT EXPOSING SEXUAL HARASSMENT ON THE JOB OR MILITARY CONTRACTORS WHO OVERBILL THE GOVERNMENT HE'S BLOWING THE WHISTLE ON A LESS PUBLICIZED KIND OF FRAUD THE PROMISE THAT AFFIRMATIVE ACTION POLICIES WILL RESULT IN A MORE JUST SOCIETY MR MERTZ HAS SEEN HOW SUCH POLICIES OPERATE FROM THE INSIDE SINCE 1987 HE'S BEEN A SENIOR EQUAL EMPLOYMENT OPPORTUNITY MANAGER AT THE AGRICULTURE DEPARTMENT IN ATLANTA A COMMISSAR IN THE BATTLE AGAINST RACISM SEXISM AND OTHER ISMS BEFORE THAT HE PERFORMED SIMILAR JOBS FOR THE LABOR DEPARTMENT AND THE ARMY IT'S A CALLING FOR WHICH HE HAS IMPECCABLE CREDENTIALS AFTER GETTING A VANDERBILT DOCTORATE HE WENT TO WORK AS A METHODIST PASTOR IN MISSISSIPPI AND PROMPTLY GOT IN TROUBLE WITH THE LOCALS FOR PREACHING RACIAL TOLERANCE LIKE MOST AMERICANS MR MERTZ IS DEDICATED TO EQUAL OPPORTUNITY FOR ALL NO MATTER WHAT RACE CREED OR SEX BUT HE QUICKLY FOUND THAT THOSE RULES DON'T APPLY TO WHITE MALES LIKE HIMSELF WHEN HE'S APPLIED FOR NUMEROUS EEO JOBS AT OTHER FEDERAL AGENCIES SINCE 1984 HE'S BEEN TURNED DOWN COLD AT THE INTERNAL REVENUE SERVICE HE GOT TOP SCORES ON HIS EXAM BUT DIDN'T EVEN LAND A JOB INTERVIEW ALL EIGHT FINALISTS WERE BLACK FEMALES MR MERTZ TRIED PURSUING A JOBDISCRIMINATION CLAIM AGAINST THE GOVERNMENT BUT WHEN THAT PROVED FRUITLESS HE DECIDED TO EXPRESS HIS FRUSTRATION ON CNN ON THE PROGRAM AIRED FEB 20 MR MERTZ DECLARED PEOPLE IN THE '60S SET UP A BIG POLICY MACHINE AND SAID WE'RE GOING TO TRY AND OPEN UP DOORS FOR PEOPLE WHO HAVE BEEN WRONGLY EXCLUDED FROM SOCIETY AND THEN THEY PUT THE MACHINE IN GEAR AND KIND OF TURNED THEIR BACKS ON IT NOW IT'S RUMBLING ACROSS THE LANDSCAPE DOING PRETTY MUCH WHAT IT WANTS MR MERTZ TELLS SOME HAIRRAISING STORIES ABOUT WHAT THE MACHINE IS DOING AGRICULTURE DEPARTMENT MANAGERS HIRE TWOFERS SAY A BLACK FEMALE OR THREEFERS SAY A DISABLED HISPANIC FEMALE IN ORDER TO GET A BONUS FOR MEETING AFFIRMATIVE ACTION QUOTAS POSTDOCTORAL FELLOWSHIPS ARE FUNDED FOR ONE YEAR IF THE RECIPIENT IS A WHITE MALE TWO YEARS IF HE OR MORE LIKELY SHE IS A MINORITY AND GET THIS A NEW TRAINING PROGRAM AT THE DEPARTMENT DESIGNED TO BUILD SELFESTEEM IS OPEN ONLY TO SENIOR AFRICANAMERICAN MALE MANAGERS THESE PEOPLE ARE ALREADY IN SENIOR POSITIONS MR MERTZ EXCLAIMS WHY SPEND TAXPAYERS' MONEY TO BOOST THEIR SELFESTEEM MR MERTZ HAS HAD TO LIVE WITH SUCH PROGRAMS FOR A WHILE WHAT HE WASN'T PREPARED FOR WAS AGRICULTURE SECRETARY MIKE ESPY'S GAYRIGHTS AGENDA PART OF THE CLINTONITES' KOWTOWING TO A KEY GROUP AT A WASHINGTON MEETING OF THE DEPARTMENT'S AFFIRMATIVEACTION ADMINISTRATORS ON FEB 25 MR MERTZ LISTENED TO A REPORT BY THE HEAD OF THE DEPARTMENT'S GAY EMPLOYEES GROUP AN OUTLINE DISTRIBUTED BY THE GAY ACTIVIST DURING HER PRESENTATION STATES UNTIL OUR RELATIONSHIPS ARE RECOGNIZED AND RESPECTED AND BENEFITS ARE AVAILABLE TO OUR PARTNERS AND FAMILIES WE ARE NOT FULL MEMBERS OF TEAM USDA TOP EXECUTIVES PLEDGED TO HOLD SENSITIVITY TRAINING TO SPREAD THIS MESSAGE AMONG THE RANKS AND TO PUNISH THOSE WHO DON'T TOE THE LINE IN OTHER WORDS HOMOSEXUAL EMPLOYEES AREN'T JUST ASKING TO BE LEFT ALONE MR MERTZ IS IN FAVOR OF THAT THEY WANT OTHER EMPLOYEES TO ACTIVELY APPROVE OF THEIR LIFESTYLE AND MR ESPY IS BACKING THE GAYRIGHTS AGENDA WITH TAXPAYERFUNDED INDOCTRINATION COURSES FOR THE DEPARTMENT'S WORKERS I WAS PUSHED AS FAR AS I COULD GO MR MERTZ SAYS A WEEK LATER ON MARCH 4 MR MERTZ ATTENDED A DEPARTMENTAL CONFERENCE IN BILOXI MISS AFTERWARD A LOCAL TV REPORTER ASKED HIM TO COMMENT ON THE GAYRIGHTS POLICY AFTER MAKING CLEAR THAT HE WAS VOICING HIS OWN VIEWS NOT THE DEPARTMENT'S THE CHRISTIAN EXPRESSED HIS DISAPPROVAL OF HOMOSEXUALITY AND SAID THAT THE AGRICULTURE DEPARTMENT SHOULD BE HEADED TOWARD CAMELOT NOT SODOM AND GOMORRAH WHEN HE GOT HOME TO ATLANTA LATER THAT NIGHT MR MERTZ RECEIVED A PHONE CALL FROM A WASHINGTONBASED AGRICULTURE DEPARTMENT BUREAUCRAT WHO SAID HE HAD HEARD ABOUT THE TV INTERVIEW FROM GAY ACTIVISTS THEN SILENCE UNTIL MARCH 28 WHEN MR MERTZ WAS SUMMONED INTO THE OFFICE OF MARY CARTER SOUTH ATLANTIC AREA DIRECTOR OF THE DEPARTMENT'S AGRICULTURE RESEARCH SERVICE WITHOUT WAITING TO HEAR HIS SIDE OF THE STORY MS CARTER HANDED HIM A MEMORANDUM ANNOUNCING THAT HIS TV INTERVIEW REFLECTS A DISAGREEMENT WITH DEPARTMENTAL CIVIL RIGHTS POLICY WHICH COULD SERIOUSLY UNDERMINE YOUR ABILITY TO PERFORM YOUR RESPONSIBILITIES THEN WITHOUT HINT OF DUE PROCESS HE WAS TRANSFERRED EFFECTIVE IMMEDIATELY TO A NEWLY CREATED JOB DEALING WITH SOMETHING CALLED WORK FORCE FORECASTING MS CARTER INSISTS THAT THE REASSIGNMENT ISN'T PUNISHMENT BUT TRY TELLING THAT TO MR MERTZ I'VE BEEN STRIPPED OF A TITLE STRIPPED OF SUPPORT STAFF STRIPPED OF WORKING IN THE FIELD OF MY EXPERTISE HE COMPLAINS THE TRULY NOXIOUS PART OF THIS IS THAT MR MERTZ IS BEING PUNISHED FOR EXERCISING HIS FIRST AMENDMENT RIGHTS NOT AS THE MEMO CLAIMS FAILING TO DO HIS JOB IN A TELEPHONE INTERVIEW MS CARTER COULDN'T NAME A SINGLE INSTANCE WHEN MR MERTZ HAD FAILED TO ENFORCE DEPARTMENT POLICY FOR HOMOSEXUALS OR ANYONE ELSE IN FACT MR MERTZ'S EVALUATION FORMS GIVE HIM HIGH MARKS IN EVERY CATEGORY INCLUDING SUPPORTS EEO AND CIVIL RIGHTS PROGRAMS GIVEN WHAT'S HAPPENED IT'S A BITTER IRONY THAT MR ESPY'S STATEMENT ON CIVIL RIGHTS POLICY SAYS I AM ESPECIALLY CONCERNED ABOUT ALLEGATIONS OF A CULTURE OF REPRISAL' AT USDA THE SECRETARY WAS WRITING ABOUT REPRISALS FOR FILING AFFIRMATIVE ACTION COMPLAINTS BUT THAT CONCERN IS EQUALLY PERTINENT HERE MR MERTZ IS APPEALING FOR HELP FROM THOSE WHO TRADITIONALLY CHAMPION THE CAUSE OF WHISTLEBLOWERS RANGING FROM THE FEDERAL OFFICE OF SPECIAL COUNSEL TO 60 MINUTES TO VARIOUS GOVERNMENTWATCHDOG GROUPS IT WILL BE INTERESTING AND HIGHLY TELLING TO SEE WHAT SUPPORT HE GETS MR BOOT IS AN ASSISTANT FEATURES EDITOR ON THE JOURNAL'S EDITORIAL PAGE SEE RELATED LETTER LETTERS TO THE EDITOR ALL THAT GAYS WANT IS EQUAL TREATMENT WSJ MAY 12 1994 9404270065 YY94 MM05 9405120110 940413 EXECUTIVE PAY A SPECIAL REPORT THE BOSS'S PAY HIGHER AND HIGHER THAT'S WHERE CASH COMPENSATION FOR CHIEF EXECUTIVES AGAIN HEADED LAST YEAR TO ANALYZE THIS TREND THE WALL STREET JOURNAL ASKED WILLIAM M MERCER INC NEW YORK COMPENSATION CONSULTANTS TO LOOK AT THE NATION'S BIGGEST COMPANIES THE SURVEY OF 350 PROXY STATEMENTS CONCLUDED THAT THE MEDIAN INCREASE IN CEO CASH PAY INCLUDING SALARIES AND BONUSES WAS 81 IN 1993 LAST YEAR'S PACE MATCHED 1992'S LEVEL THE HIGHEST SINCE 1988 AND ALSO EXCEEDED THE 45 INCREASE IN PAY FOR WHITECOLLAR EMPLOYEES IN MERCER'S SAMPLE 159 CHIEF EXECUTIVES EXERCISED STOCK OPTIONS FOR A MEDIAN GAIN OF 593382 CEOS' MEDIAN TOTAL COMPENSATION INCLUDING SALARY BONUSES LONGTERM INCENTIVES AND THE VALUE OF RESTRICTED STOCK AT THE TIME OF THE GRANT CAME TO 1776168 IN 1993 THE HIGHEST TOTAL COMPENSATION SINCE THE WALL STREET JOURNAL SURVEY BEGAN IN 1989 SEC RULES FOR PROXY STATEMENTS REQUIRE DISCLOSURE OF THE COMPENSATION OF THE CHIEF EXECUTIVE OFFICER PLUS FOUR OR MORE OTHER HIGHLY COMPENSATED EXECUTIVES THE INDIVIDUALS LISTED IN THE TABLE WERE EITHER DESIGNATED AS CHIEF EXECUTIVE OFFICER IN THEIR COMPANY'S PROXY STATEMENT OR WHERE NO SUCH TITLE WAS DISCLOSED WERE THE MORE HIGHLY PAID BETWEEN THE PRESIDENT AND CHAIRMAN OF THE BOARD PERCENT CHANGE FROM 1992 INDICATES THE CHANGE IN SALARY/BONUS FROM 1992 TO 1993 PERCENT CHANGE DATA HAVE BEEN EXCLUDED FOR NEW CEOS AND IN CASES WHERE SALARY/BONUS DATA FOR FISCAL YEAR 1993 OR 1992 ARE NOT VALID LONGTERM COMPENSATION OPTION GAINS INCLUDES GAINS FROM THE EXERCISE OF STOCK OPTIONS AND/OR STOCKAPPRECIATION RIGHTS DURING FISCAL 1993 LONGTERM COMPENSATION OTHER INCLUDES FISCAL 1993 1 VALUE OF SHARES OF RESTRICTED STOCK OR RESTRICTED STOCK UNITS AT GRANT AND 2 VALUE OF PAYOUTS UNDER ANY OTHER LONGTERM INCENTIVE COMPENSATION PLAN TOTAL DIRECT COMPENSATION IS THE SUM OF SALARY/BONUS AND LONGTERM COMPENSATION COMPENSATION REQUIRED BY THE SEC TO BE DISCLOSED AS OTHER ANNUAL COMPENSATION EG PERQUISITES TAX REIMBURSEMENTS OR DIVIDEND EQUIVALENTS PAID ON OUTSTANDING LONGTERM GRANTS OR ALL OTHER COMPENSATION EG COMPANY CONTRIBUTIONS TO DEFINEDCONTRIBUTION PLANS OR PREMIUM PAYMENTS FOR SPLITDOLLAR LIFE INSURANCE IS NOT INCLUDED IN ANY OF THE FOREGOING FIGURES MATERIAL AMOUNTS PAID BUT EXCLUDED FROM TOTAL DIRECT COMPENSATION HAVE BEEN NOTED SEPARATELY PRESENT VALUE OF OPTION GRANTS FOR FISCAL 1993 IS CALCULATED USING THE BINOMIAL OPTIONPRICING MODEL WITH THE FOLLOWING INPUTS STOCK PRICE AT GRANT DATE EXERCISE PRICE OF OPTION TERM OF OPTION RISKFREE RATE OF RETURN AT GRANT DATE WHICH REPRESENTS THE YIELD ON US TREASURY SECURITIES WITH A MATURITY DATE CORRESPONDING TO THE TERM OF OPTION EXPECTED DIVIDEND YIELD CALCULATED USING THE ANNUAL DIVIDEND RATE IN EFFECT AT CALENDAR YEAREND AND EXPECTED VOLATILITY CALCULATED USING DAILY STOCK PRICES OVER 250 TRADING DAYS PRIOR TO CALENDAR YEAREND NO ADJUSTMENTS WERE MADE FOR NONTRANSFERABILITY RISK OF FORFEITURE OR VESTING RESTRICTIONS OF THE OPTIONS OPTIONS THAT INCLUDE PAYMENT OR ACCRUAL OF DIVIDENDS PRIOR TO EXERCISE WERE VALUED IN A MANNER THAT ACCOUNTED FOR THIS FEATURE BY ASSUMING A DIVIDEND YIELD OF ZERO WHEN THE GRANT DATE WAS NOT DISCLOSED THE GRANT WAS ASSUMED TO HAVE BEEN MADE AT MIDFISCAL YEAR FOR THE PURPOSE OF APPROXIMATING THE RISKFREE RATE OF RETURN THE SEC'S REPORTING GUIDELINES SOUGHT TO STRIKE A BALANCE AMONG THE NEEDS OF SHAREHOLDERS MANAGEMENT AND INSTITUTIONAL INVESTORS IN PREPARING THE WALL STREET JOURNAL/WILLIAM M MERCER CEO COMPENSATION SURVEY THIS YEAR WE TOO SOUGHT TO REFLECT THE VIEWS OF THESE CONSTITUENCIES BECAUSE THE SEC GIVES COMPANIES A CHOICE OF HOW TO REPORT STOCKOPTION VALUES IT WAS NECESSARY TO DEVELOP A UNIFORM METHODOLOGY THAT WOULD PERMIT MEANINGFUL COMPARISON ACROSS COMPANIES COMPANIES COULD EITHER REPORT OPTION VALUES ON A GRANTDATE PRESENTVALUE BASIS USING A VALUATION METHODOLOGY SUCH AS BLACKSCHOLES OR A POTENTIAL REALIZABLE VALUE BASIS ASSUMING ANNUAL STOCKPRICE APPRECIATION OF 5 AND 10 OVER THE TERM OF THE OPTION MERCER ASKED NATIONAL ECONOMIC RESEARCH ASSOCIATES CONSULTING ECONOMISTS TO CALCULATE THE ESTIMATED PRESENT VALUE OF ALL 1993 CEO STOCKOPTION GRANTS USING THE BINOMIAL OPTIONPRICING MODEL THESE VALUES HAVE BEEN INCOPORATED INTO THE SURVEY SECTION AS THE PRESENT VALUE OF OPTION GRANTS THE SURVEY DATA PROVIDED CAN BE USED TO DIFFERENTIATE BETWEEN COMPENSATION PAID FOR PAST PERFORMANCE AND COMPENSATION POTENTIAL FOR FUTURE PERFORMANCE READERS SHOULD NOTE THAT ADDING TOTAL DIRECT COMPENSATION AND THE PRESENT VALUE OF OPTION GRANTS FOR A TOTAL COMPENSATION VALUE IS LIKELY TO BE MISLEADING ESPECIALLY OVER MULTIYEAR PERIODS OVER TIME THE VALUE TO THE CEO OF THE OPTION GRANT MAY APPEAR TWICE ONCE AS AN ESTIMATED PRESENT VALUE AT GRANT AND THEN AGAIN ALMOST CERTAINLY WITH A DIFFERENT DOLLAR VALUE WHEN THE CEO EXERCISES THE OPTION SEE ACCOMPANYING CHARTS WSJ APRIL 13 1994 9405120087 940412 THE ZULUS VICTORIAN WARRIORS IN THE MODERN AGE BY DAVID BROOKS IN THE 19TH CENTURY THE ZULUS WERE THE MOST ADMIRED AND ROMANTICIZED OF AFRICAN TRIBES THEY WERE CELEBRATED IN EUROPE AND THE US FOR THEIR WARRIOR SPIRIT AND THEIR FIERCE INDEPENDENCE THEIR IMPOSING REPUTATION WAS FIRST EARNED BY THE ZULU KING SHAKA WHO IN THE 1820S BUILT AN EMPIRE IN SOUTHERN AFRICA IT WAS SEALED IN 1877 WHEN ZULU SOLDIERS DECIMATED A WELLTRAINED BRITISH FORCE AT THE BATTLE OF ISANDHLWANA ONE OF THE FEW TIMES IN THE PAST 400 YEARS THAT AN ARMY WITH SPEARS HAS DEFEATED AN ARMY WITH GUNS TODAY THE ZULUS ARE THE MOST SCORNED OF AFRICAN TRIBES THEY ARE CENSURED FOR EXACTLY THE QUALITIES THAT ONCE EARNED THEM RESPECT THEIR WARRIOR SPIRIT AND FIERCE INDEPENDENCE EARLY LAST YEAR TO TAKE A TYPICAL TREATMENT THE FINANCIAL TIMES RAN AN ESSAY ON THE ZULUS UNDER THE HEADLINE THE HISTORY OF BLOODLUST THAT STAINS THE CONFERENCE TABLE THE ACCOMPANYING ARTWORK SHOWED A MUSCLEBOUND ZULU WARRIOR LOOMING OMINOUSLY OVER A MULTIRACIAL NEGOTIATION THE EDITOR'S EXPLANATORY PANEL READ THE ZULU TRADITION IS KILLING AND CONQUEST UNDER SHAKA THEIR HEROIC BUT BRUTAL WARRIOR KING THIS IS HARD TO RECONCILE WITH THE IDEAL OF A NEW SOUTH AFRICA THE ZULUS ARE VICTIMS OF A CULTURE SHIFT IN THE 19TH CENTURY THE PHENOMENALLY POPULAR NOVELIST H RIDER HAGGARD COULD CELEBRATE THEM AS THE ROMANS OF AFRICA HAGGARD'S ADVENTURE STORIES THE INSPIRATION FOR THE INDIANA JONES SERIES CELEBRATE VIRILITY HE LIVED IN ZULU TERRITORY DURING THE BATTLE OF ISANDHLWANA AND CAME TO SEE THE ZULUS' COURAGE AND DISCIPLINE AS THE EMBODIMENT OF HIS OWN RUGGED IDEALS THE ZULUS WERE PERHAPS THE ONLY SOLDIERS EVER ACCORDING TO MILITARY HISTORIAN JOHN KEEGAN SO DISCIPLINED THAT THEY COULD FACE NAKED BLADES WITHOUT FLINCHING AND IT WASN'T ONLY MACHO NOVELISTS WHO ADMIRED THEM QUEEN VICTORIA PRAISED ZULU FEROCITY AND COURAGE THE VICTORIANS SAW IN THE ZULUS THE MILITARY VIRTUES HONOR GLORY CONTEMPT FOR SOFTNESS THAT WERE CENTRAL TO THEIR OWN IMAGINATIONS MILITARY VIRTUES WERE SO PROMINENT THEN THAT WHEN THE SALVATIONISTS IN LONDON FORMED A CHARITABLE GROUP IN THE 1870S THEY CALLED IT AN ARMY EVEN INTELLECTUALS BELIEVED THAT CHARACTER WAS BUILT THROUGH COMBAT AND ORDEAL THE GREAT HISTORIAN MACAULAY CELEBRATED A FEW OF HIS HEROES WITH A CHARACTERISTIC LINE MEN VERY PEACEABLE BUT WHO COULD BE MADE VERY TERRIBLE THAT'S ALL MARGINALIZED NOW VIRILITY IS NO MORE IMPORTANT TO THE CONTEMPORARY VIRTUES THAN ITS CHIEF EXPONENT RUDYARD KIPLING IS TO CONTEMPORARY CULTURE FREUD THE HORRORS OF THE WORLD WARS ALAN ALDA AND A THOUSAND OTHER 20TH CENTURY INFLUENCES TOOK THE STEAM OUT OF THAT VERSION OF MANLINESS NOW THE MARTIAL VIRTUES ARE RESTRICTED TO SUBCULTURES AND CHURCH GROUPS THINK ABOUT REWRITING THE LYRICS TO ONWARD CHRISTIAN SOLDIERS THE GENTLER IDEALS OF SENSITIVITY COMPASSION INTROSPECTION AND TOLERANCE HOLD SWAY THE ZULUS THUS FIND THEMSELVES OUT OF FAVOR LOSING THEIR CURRENT PROPAGANDA WAR TO THE AFRICAN NATIONAL CONGRESS IN MEDIA AGE POLITICS THE POSITIONS A GROUP TAKES ARE OFTEN LESS IMPORTANT THAN THE ATTITUDES IT STRIKES THE ZULUBASED INKATHA FREEDOM PARTY TAKES MODERATE POSITIONS BUT STRIKES VIRILE BELLIGERENT POSES THE MORE SUCCESSFUL ANC STRATEGY HAS COMBINED RADICAL POLICIES WITH GENTLE PROGRESSIVE ATTITUDES THAT ACCORD WELL WITH TODAY'S ETIQUETTE INKATHA HAS ESPOUSED WESTERNSTYLE MARKET DEMOCRACY WHILE THE ANC HAS ALWAYS HAD A LARGE COMMUNIST ELEMENT EVEN TODAY 26 OF ITS LEADING PARLIAMENTARY CANDIDATES ARE COMMUNISTS INKATHA ORIGINALLY BROKE WITH THE ANC BECAUSE INKATHA OPPOSED VIOLENCE AS THE WAY TO OVERTHROW APARTHEID THE ANC WENT OFF TO FORM A GUERRILLA ARMY INKATHA SUPPORTS SWISS OR AMERICANSTYLE FEDERALISM WHILE THE ANC HAS PUSHED THROUGH A HIGHLY CENTRALIZED CONSTITUTION YET THE POLITICS OF REPUTATION ARE SUCH THAT IT IS THE INKATHA LEADERS WHO ARE KNOWN AS BRISTLING UNRELIABLES WHETHER THE ZULUS REALLY ARE THAT TOUGH IS AN OPEN QUESTION IN HIS 1976 BOOK ZULU THOUGHTPATTERNS AND SYMBOLISM ANTHROPOLOGIST AXELIVAR BERGLUND DESCRIBES A CULTURE THAT IS QUITE PEACEABLE BUT ZULU LEADERS HAVE PLAYED HEAVILY ON THE IMAGE OF THEMSELVES AS FIERCE WARRIORS ESPECIALLY IN RECENT MONTHS AS THEY HAVE FELT THEMSELVES BACKED INTO A CORNER BY THE ANC INKATHA SPEAKERS ARE QUICK TO MAKE PASSIONATE BOASTS AND TO ISSUE DARES LEADER MANGOSUTHU BUTHELEZI IS A SUBTLE POLITICIAN BUT HE HAS EARNED THE NICKNAME BABEZANE AFTER THE THORNY CACTUS PLANT HE IS PROUD AND PRONE TO LASHING OUT WHEN HE FEELS SLIGHTED HIS COMBATIVE STYLE HAS WON LOYALTY AMONG TRADITIONAL ZULUS WHILE ALIENATING MANY URBANITES THE ZULUS' QUANDARY IS THIS THE TWO MOST IMPORTANT GROUPS IN THE COUNTRY THE ANC AND THE WHITE NATIONAL PARTY HAVE ALLIED TO CONSTRUCT A NEW SOUTH AFRICAN ORDER THAT IS GOOD FOR THEM BUT WHICH CEDES LITTLE OR NO POWER TO THE DOZENS OF OTHER GROUPS AND PARTIES OF THESE MINORITY GROUPS RANGING FROM THE BLOWHARDS ON THE WHITE RIGHT TO THE WHITE LIBERALS ON THE DEMOCRATIC LEFT TO THE NIHILISTS ON THE PANAFRICAN LEFT ONLY INKATHA HAS BEEN PROUD OR FIERCE OR STUPID ENOUGH TAKE YOUR PICK TO STAND UP TO THE ANC/NATIONAL PARTY STEAMROLLER IN THE 19TH CENTURY PERHAPS INKATHA'S RESISTANCE TO THE ANCDOMINATED POLITICAL PROCESS WOULD HAVE BEEN SEEN AS A COURAGEOUS STAND FOR DIGNITY EVERY VICTORIANERA AMERICAN AND BRITISH SCHOOLCHILD WOULD HAVE BEEN FAMILIAR WITH THE CLASSIC STATEMENT ABOUT WHEN TO FIGHT THAT IS FOUND IN TOM BROWN'S SCHOOL DAYS THE WORLD MIGHT BE A BETTER WORLD WITHOUT FIGHTING FOR ANYTHING I KNOW BUT IT WOULDN'T BE OUR WORLD AND THEREFORE I AM DEAD AGAINST CRYING PEACE WHEN THERE IS NO PEACE AND ISN'T MEANT TO BE I AM AS SORRY AS ANY MAN TO SEE FOLK FIGHTING THE WRONG PEOPLE AND THE WRONG THINGS BUT I'D A DEAL SOONER SEE THEM DOING THAT THAN THAT THEY SHOULD HAVE NO FIGHT IN THEM COMPARE THE LANGUAGE FOUND IN THIS PASSAGE TO THE SORT OF RHETORIC THAT SURROUNDS THE UNITED NATIONS TODAY WE PLACE A HIGHER EMPHASIS ON COMPROMISE AND RECONCILIATION AND ARE NOT SO CONCERNED THAT PEOPLE SHOULD HAVE FIGHT IN THEM WE ARE LESS WILLING TO SACRIFICE LIVES FOR ETHEREAL AND SOMETIMES BOGUS NOTIONS SUCH AS NATIONAL PRESTIGE VIEWING PEACE AS A GOOD IN ITSELF WESTERN OPINION CAN BE ROUGH ON PEOPLE WHO BECOME DEFINED AS OBSTACLES TO PEACE INKATHA IS NOW RESENTED FOR STANDING IN THE WAY OF WHAT IS VAGUELY KNOWN AS MULTIRACIAL DEMOCRACY THERE ARE SOME ZULUPHILES TODAY SHAKA ZULU PLAYS A LARGE ROLE IN SOME AFROCENTRIC SCHOOL CURRICULUMS BUT IN THE MAINSTREAM THERE IS LITTLE SYMPATHY FOR THE ZULUS AND THEIR CULTURE THAT SHOULD REMIND US THAT PUBLIC DEBATES ABOUT PLACES LIKE SOUTH AFRICA ARE OFTEN SHADOW PLAYS FOR UNSPOKEN DISCUSSIONS OF OUR OWN CULTURAL SHIFTS AND DISPUTES MR BROOKS IS DEPUTY EDITORIAL PAGE EDITOR OF THE WALL STREET JOURNAL EUROPE SEE RELATED LETTERS LETTERS TO THE EDITOR THE ZULU WARRIOR THEN AND NOW WSJ MAY 12 1994 9404120119 YY94 MM05 9405120082 940426 REEMPLOYMENT' THAT KILLS JOBS BY AMITY SHLAES HANOVER GERMANY WONDERING WHAT A HUGE RETRAINING BUREAUCRACY CAN DO FOR A NATION'S UNEMPLOYMENT LEVELS HOP OVER TO HANOVER AND MEET ANDREAS THE LATHE OPERATOR IN THE PURPLE JACKET REPRESENTS THE CLASSIC BLUECOLLAR CHALLENGE AN OLDTIMER AT A TROUBLED MACHINETOOL COMPANY GENEROUS GERMANY IS OFFERING ANDREAS A DREAM PACKAGE NINE MONTHS TUITIONFREE IN A COURSE ON COMPUTERASSISTED LATHES BUT HOW ABOUT KEEPING THAT OLD JOB PARTTIME ANDREAS WANTS TO STAY IN TOUCH WITH HIS FIRM WHILE HE STUDIES SORRY SAYS A TOWN OFFICER IT'S THE JOB OR THE SCHOOL PARTTIME WORK IS NOT DESIRED DESIRED BY WHOM IS THE OPERATIVE QUESTION HERE GERMAN COMPANIES HAVE RECENTLY WON PRAISE WORLDWIDE FOR THEIR PRIVATE RETRAINING PROGRAMS THE GERMAN GOVERNMENT'S MULTIBILLIONDOLLAR RETRAINING SCHEME HAS ALSO WON INTERNATIONAL ATTENTION FIXTURES IN GERMANY'S REEMPLOYMENT PROGRAM LIKE A ONESTOP JOBS CENTER IN EVERY BIG TOWN AND LARGESCALE VOCATIONAL RETRAINING FIGURE PROMINENTLY IN LABOR SECRETARY ROBERT REICH'S 15 BILLION 1994 REEMPLOYMENT ACT YET IT'S NOT CLEAR THE GERMAN SYSTEM IS WORTH EMULATING GERMANY'S POLICY OF SPENDING TENS OF BILLIONS ANNUALLY ON RETRAINING IS YIELDING A LABOR MARKET WITH RIGID 10 UNEMPLOYMENT COMPANIES COMPLAIN THEY RETRAIN ONLY BECAUSE LABOR SETTLEMENTS MAKE IT TOO EXPENSIVE TO LAY OFF THE JOB FUNDING IS ITSELF PART OF A VAST SOCIALBENEFITS PACKAGE THAT KILLS JOBS BY MAKING GERMAN LABOR THE MOST EXPENSIVE IN THE WORLD IN FACT MANY GERMANS SAY THEY ARE SICK OF LABORMARKET MICROMANAGEMENT FROM ABOVE THEY NOTE THAT GERMAN GROWTH IN THE 1980S YIELDED NOTHING LIKE THE 18 MILLION JOBS CREATED IN THE US IN THAT PERIOD INDEED 8 OF INDUSTRIAL JOBS DISAPPEARED FROM GERMANY LAST YEAR MANY ARGUE THE GERMAN SYSTEM SHUTS JOB CREATORS OUT OF THE MARKET IT'S OBVIOUS TO US ALL THAT RETRAINING CAN PROTECT AGAINST UNEMPLOYMENT AND THAT RETRAINING IS CRUCIAL IN MODERN ECONOMIES SAYS WILFRIED PREWO WHO HEADS HANOVER'S CHAMBER OF COMMERCE BUT NOT WHEN COMPANIES ARE FORCED TO DO IT OR WHEN IT IS DONE BY A GOVERNMENT AND OUR GOVERNMENT NEGLECTS MEASURES LIKE CUTTING TAXES OR REGULATION WE SPEND A LOT OF MONEY MOVING DEAD BODIES AROUND IN A GRAVEYARD RATHER THAN GIVING BREATHING SPACE TO NEW BUSINESSES SO THEY CAN GROW TO SPEND 24 HOURS IN THE HANOVER AREA IS TO MEET THE MAIN PLAYERS IN THIS MACABRE ECONOMIC GAME FIRST STOP IS THE OFFICE OF GERHARD SCHROEDER LOWER SAXONY'S 50YEAROLD HEAD OF STATE AND A GERMAN VERSION OF A CLINTON NEW DEMOCRAT MR SCHROEDER LISTS HIS TWO FAVORITE WEAPONS FOR CONTAINING UNEMPLOYMENT THE FIRST IS SELECTIVE BUT FIRM PRACTICE OF INDUSTRIAL POLICY ALTHOUGH HE MODESTLY ALLOWS THAT HIS TALENTS IN THIS ARENA DON'T MATCH THE CURRENT US ADMINISTRATION'S THE SECOND IS ALSO CLINTONESQUE REDIVIDING A STATIC ECONOMIC PIE IN GERMANY THE GOVERNOR NOTES BREEZILY THIS IS EASY IN PART BECAUSE THE OLD SEPARATION BETWEEN GOVERNMENT AND BUSINESS JUST DOESN'T EXIST A FACT THAT IS PROBABLY NO NEWS TO HIS REGION'S BURDENED SMALL BUSINESSES MR SCHROEDER NOTES WITH PRIDE THAT VOLKSWAGEN LOWER SAXONY'S BIGGEST EMPLOYER IS RETRAINING 30000 PEOPLE RATHER THAN LAYING THEM OFF THE COMPANY AND TRADE UNIONS AGREED TO A FOURDAY WORKWEEK AT REDUCED PAY TO FINANCE THAT TRAINING WHERE WE CAN MR SCHROEDER SAYS WE TRY TO SHARE WORK NOW THE GOVERNOR IS BUSY PROPPING THINGS UP ON THE DEMAND SIDE SO THAT PEOPLE WILL BUY THE EXPENSIVE LOCAL PRODUCT IT IS ALWAYS BETTER WHEN PEOPLE BUY A VW INSTEAD OF A CHRYSLER DAS KAPITAL FOR ITS PART IS AN ACTIVE PARTNER IN THIS JOBS CONSENSUS AT LEAST DAS KAPITAL AS REPRESENTED BY THE REGION'S BIG BANK A FIVEMINUTE CAB RIDE AWAY FROM THE CHANCELLERY NORDDEUTSCHE LANDESBANK'S BOARD CHAIRMAN MANFRED BODIN SAYS THAT IN THE SHORT TERM RESTRUCTURING WILL NOT BRING BETTER FIGURES FOR UNEMPLOYMENT BUT HE ALSO BELIEVES THAT SUBSIDIZED WORK IS BETTER THAN UNEMPLOYED PEOPLE AN HOUR DOWN THE AUTOBAHN AT THE HANDSOME OLD VOLKSWAGEN PLANT IN WOLFSBURG MANAGEMENT AND WORKERS ARE BUSY REPARCELING PRECIOUS JOBS VW EXECS BOAST ABOUT THEIR SHORT WORKWEEK A RECENTLY HIRED MANAGER PETER HARTZ BECAME THE COMPANY'S STAR WHEN HE DESIGNED A COACHING CORP WITHIN VW TO TEACH AND RETRAIN 30000 SUPERFLUOUS WORKERS THE COMPANY HAS GUARANTEED IT WILL KEEP THESE WORKERS BUSY FOR THE NEXT TWO YEARS EITHER IN SCHOOL OR AT WORK MR HARTZ ALSO EARNED PRAISE AND CAUSED SIGHS OF RELIEF IN STAGNATING LOWER SAXONY WHEN HE FIGURED OUT A WAY TO CONTAIN THE COSTS OF EMPLOYING YOUNG PEOPLE WITHOUT HIRING CUTBACKS VOLKSWAGEN WILL START THE 17 TO 19YEAROLDS AT PARTTIME HOURS SEVERANCE COMPENSATION IS SO EXPENSIVE IN GERMANY THAT VW COUNTS ON SAVING MORE THAN A BILLION DOLLARS BY PRESERVING THESE JOBS EVEN SO SUCH CONTORTIONS SEEM EXTREME PARTICULARLY GIVEN THAT VW PAYS MORE FOR LABOR AT THIS FACTORY THAN ALMOST ANY CAR COMPANY DOES AT ANY FACTORY ANYWHERE IN THE WORLD WHEN IT COMES TO ITS DOMESTIC FACTORIES THOUGH THE COMPANY DOESN'T HAVE MUCH CHOICE THIS IS PARTLY BECAUSE OF VW HISTORY THE PEOPLE'S CAR WAS ORIGINALLY A NAZI SOCIALWORKS PROGRAM AND VW HAD ALREADY TESTED LOWER SAXON PATIENCE RECENTLY WITH LAYOFFS POLITICS TOO PLAY A ROLE HERE THE LOWER SAXON STATE OWNS 20 OF VW STOCK UNDER GERMANY'S UNIQUE CODETERMINATION SYSTEM UNION LEADERS SIT ON VW'S POWERFUL SUPERVISORY BOARD TOGETHER WITH OTHER SOCIALLY MINDED BOARD MEMBERS INCLUDING MR SCHROEDER THEY CONTROL THE MAJORITY OF VOTES THE PRICE TAG FOR ALL THIS REDISTRIBUTIVE ACTIVITY IS VISIBLE BACK IN HANOVER WHERE THE ARBEITSAMT THE GERMAN VERSION OF MR REICH'S ONESTOP LABOR OFFICE POSTS A STATE UNEMPLOYMENT RATE OF 111 AS UNEMPLOYMENT OFFICES THE WORLD OVER GO THE REDBRICK STRUCTURE WITH SMOOTHRUNNING ESCALATORS SEEMS PRACTICALLY ELEGANT IT WAS BUILT ABOUT 10 YEARS AGO WHEN A STAFFER ADMITS WE WERE JUST EXPLODING OUT OF THE OLD STRUCTURE A WALL OF PLAQUES ON THE GROUND FLOOR REFLECTS THE EXTENT OF GERMAN EDUCATIONAL OVERQUALIFICATION SPECIAL ED TEACHERS GOLDSMITHS CARPENTERS ARTISTS ALL REPORT TO DIFFERENT DEPARTMENTS SUBTLY AND EVEN DIRECTLY THE MUNICIPALITY ENCOURAGES CITIZENS TO DISDAIN WHAT THEY REALLY NEED A SIMPLE JOB A MORNING WITH STAFFERS AND A FEW JOBSEEKERS REVEALS THE COSTS IN MONEY AND INDIVIDUAL INITIATIVE THIS SYSTEM DEMANDS THE ARBEITSAMT OFFERS COUNSELING AND ASSESSMENT PRECISELY THE CUSTOMER FOCUS MR REICH HAS CALLED FOR HERTHA 34 RECENTLY COMPLETED A LONG MEDICAL EDUCATION AS A VETERINARIAN ON THE STATE IN THE SAME PERIOD THOUGH GERMANY TRAINED TOO MANY VETS SO THE GOVERNMENT HAS JUST TRIED AGAIN WITH HERTHA IT SPENT SOME 10000 TO RETRAIN HER OVER 13 MONTHS AS AN ENVIRONMENTAL CONSULTANT SINCE THE ENVIRONMENT IS A GROWTH AREA HERTHA WILL PROBABLY GET A JOB BUT AS LIKELY AS NOT ONE WHERE AS A PUBLIC EMPLOYEE SHE STILL COSTS THE GOVERNMENT MONEY FROM HERTHA'S PERSPECTIVE THAT'S A GOOD THING BECAUSE SO MUCH SCHOOL HAS MADE HER SLIGHTLY PICKY I DON'T WANT TO DO SOMETHING THAT ISN'T IN MY PROFESSION ANYMORE WE LEARNED FROM EAST GERMANY THAT THE GOVERNMENT IS BAD AT MAKING INVESTMENT DECISIONS SAYS THOMAS MAYER WHO LOOKS AT GERMANY FOR GOLDMAN SACHS SO WHY ARE WE ALLOWING IT TO MAKE THIS INVESTMENT DECISION RETRAINING HERE ONE GROUP CLEARLY EXCLUDED FROM THIS NEAT PICTURE IS JOB CREATORS LIKE SMALL AND MEDIUMSIZED BUSINESS WILFRIED PREWO THE CHAMBER OF COMMERCE HEAD LIKES TO NOTE THAT GERMANY'S COMMITMENT TO KEEPING 16 MILLION YOUTHS IN VOCATIONAL PROGRAMS HAS GIVEN THE NATION EUROPE'S LOWEST YOUTH UNEMPLOYMENT BUT HE ALSO NOTES THAT THE ADULT RETRAINING PROGRAMS WHICH ARE SUBSIDIZED BY AN UNEMPLOYMENT TAX RAISE LABOR COSTS AND THAT IN TURN DRIVES AWAY BUSINESS THE BIGGEST SHUTOUTS THOUGH ARE A FEW MILES TO HANOVER'S EAST IN FORMER EAST GERMANY BONN COULD HAVE FOLLOWED THE FREEMARKET TRADITIONS OF ONE OF THE FEDERAL REPUBLIC'S OWN NATIONAL FATHERS LUDWIG ERHARD AND GIVEN EASTERN GERMANS AN INITIAL HOLIDAY FROM WEST GERMANY'S THICK NET OF HIGH TAXES AND REGULATION INSTEAD IT RAISED NATIONAL TAX LEVELS 10 TIMES EMBARKED ON SUBSIDIES THAT DOUBLED THE NATIONAL DEBT IN FOUR YEARS PUSHED THE BUNDESBANK INTO EXCHANGING WESTERN MARKS AT PAR FOR COMMUNIST MONEY AND LOOKED ON WHILE WEST GERMAN GROUPS UNIONIZED EASTERNERS ONE RESULT WAS A HIGHLY REGULATED HIGHLABORCOST REGION WHOSE WORKERS EVEN AFTER MASSIVE SUBSIDY COULD NOT COMPETE WITH POLISH OR CZECH COUNTERPARTS WHOSE HOURLY WAGE IS ONETENTH OF THEIRS ANOTHER RESULT WAS EAST GERMAN DESPAIR IN THIS ELECTION YEAR GERMANS OF ALL POLITICAL BACKGROUNDS ARE RETHINKING THEIR RETRAINING POLICY IT'S PRETTY FUNNY SAYS A BANK ECONOMIST WHO NOTES THAT IN THE SAME MONTHS MR REICH WAS WRITING HIS PROGRAM GERMANY WAS PRIVATIZING PART OF THE FUNCTION OF ITS JOB CENTERS WHILE THE US IS GOING ONE WAY GERMANY IS GOING THE OTHER I KNOW WE MADE FUN OF THOSE MCDONALD'S POSITIONS SAYS ANOTHER ECONOMIST REFERRING TO THE JOBS MANY FOR THE UNSKILLED CREATED IN AMERICA IN THE 1980S BUT TELL ME AGAIN HE ASKS A REPORTER HOW MANY MILLION WERE THERE MISS SHLAES IS EDITORIAL FEATURES EDITOR OF THE WALL STREET JOURNAL SEE RELATED LETTER LETTERS TO THE EDITOR EAST IMITATES WEST WITH LABOR PROBLEMS WSJ MAY 12 1994 9404260086 YY94 MM05 9405110192 940420 LETTERS TO THE EDITOR HUMAN GUINEA PIGS DESERVE JUSTICE IN HIS APRIL 13 EDITORIALPAGE ARTICLE THE RADIATION SCARE'S REAL FALLOUT MAX BOOT CRITICIZES LAWYERS FOR REPRESENTING PEOPLE WHO HAVE BEEN THE VICTIMS OF RADIATION EXPERIMENTS MR BOOT PAINTS WITH A BROAD BRUSH TO THE EFFECT THAT THE LAWSUITS AND NOT THE EXPERIMENTS THEMSELVES ARE THE PROBLEM WE ARE AMONG THOSE HE CRITICIZES FOR OUR LAW FIRMS REPRESENT PLAINTIFFS IN THE TWO CLASSACTION SUITS THAT HAVE BEEN FILED IN THE AFTERMATH OF ENERGY SECRETARY HAZEL O'LEARY'S DISCLOSURES ABOUT GOVERNMENT AND UNIVERSITYSPONSORED RADIATION EXPERIMENTATION ON HUMANS THE FIRST OF THOSE LAWSUITS INVOLVES MORE THAN 800 PREGNANT WOMEN WHO WERE GIVEN RADIOACTIVE IRON IN SOCALLED COCKTAILS WHILE ATTENDING VANDERBILT UNIVERSITY'S PRENATAL CLINIC IN THE LATE 1940S THE UNIVERSITY STATES THAT THE PURPOSE OF THE EXPERIMENT WAS TO MEASURE THE ABSORPTION OF IRON BY WOMEN DURING PREGNANCY HOWEVER NONE OF THE WOMEN WERE ADVISED THAT THEY WERE PARTICIPATING IN AN EXPERIMENT NOR THAT THEY WERE RECEIVING THE RADIATION LACED IRON AS PART OF AN EXPERIMENT INDEED THE RESEARCHERS ATTEMPTED TO KEEP THE INFORMATION ABOUT THE RADIATION EXPERIMENTS EVEN FROM THE PHYSICIANS TREATING THE PREGNANT WOMEN DURING THE 1960S A DIFFERENT SET OF VANDERBILT'S OWN RESEARCHERS ATTEMPTED TO LOCATE THE WOMEN IN THE STUDY AND TO RECORD THE HEALTH OF THEIR CHILDREN REPORTING IN A MEDICAL JOURNAL THE RESEARCHERS LEARNED THAT FOUR CHILDREN OF THE RADIATED MOTHERS HAD DIED OF CANCER THERE WERE NO CHILD DEATHS IN A CONTROL GROUP THAT THE RESEARCHERS HAD CREATED DISCOUNTING ONE OF THE FOUR DEATHS BECAUSE FATAL CANCERS APPEARED IN TWO OF HIS SIBLINGS THE RESEARCHERS NEVERTHELESS DETERMINED THAT THE RESULTS SUGGESTED A CAUSE AND EFFECT RELATIONSHIP BETWEEN EXPOSURE TO RADIOACTIVE IRON AND THE THREE CHILDREN THE DAUGHTER OF OUR CLIENT EMMA CRAFT DIED OF CANCER AT THE AGE OF 11 MS CRAFT LEARNED LAST DECEMBER OF HER INVOLVEMENT IN THE STUDY IN THE WAKE OF SECRETARY O'LEARY'S DISCLOSURES AND HAS VOWED TO FIGHT THE CASE AS A FINAL TRIBUTE TO HER DAUGHTER TO ENSURE THAT NONCONSENSUAL HUMAN EXPERIMENTATION NEVER AGAIN OCCURS OUR LAWSUIT WILL MAKE VANDERBILT ANSWER THE CHARGE THAT ITS RESEARCHERS SHOULD NOT HAVE FED RADIOACTIVE IRON TO PREGNANT WOMEN WITHOUT THEIR CONSENT OUR SUIT WILL FORCE VANDERBILT TO MAKE AVAILABLE THE EXPERIMENT RECORDS OF ALL THOSE PEOPLE WHO WERE GIVEN RADIATION WITHOUT THEIR KNOWLEDGE OR CONSENT AND IF SUCCESSFUL WILL FORCE VANDERBILT TO PROVIDE MEDICAL CARE TO ALL THOSE PEOPLE WHO SUFFER PHYSICAL AILMENTS CAUSED BY THE EXPERIMENT THIS CASE IS CLEARLY NOT BASELESS AS MR BOOT SUGGESTS BUT ON SOUND MORAL AND FACTUAL FOOTING VANDERBILT'S OWN RESEARCHERS HAVE PROVIDED ALL THE FACTS UPON WHICH WE RELY THE SAME IS TRUE IN THE CINCINNATI CASE WHERE THE PENTAGON PAID MORE THAN 650000 TO FUND EXPERIMENTS IN WHICH 88 PEOPLE WERE INTENTIONALLY EXPOSED TO LEVELS OF TOTAL BODY RADIATION APPROXIMATING THOSE THAT SOLDIERS MIGHT ENCOUNTER DURING A NUCLEAR WAR DR EUGENE SAENGER THE ARCHITECT OF THE PROGRAM DESCRIBED IN HIS WRITINGS THE PURPOSE OF THE EXPERIMENTS AS BEING TO GAUGE THE PHYSIOLOGICAL AND PSYCHOLOGICAL EFFECTS OF HIGH LEVELS OF TOTAL BODY RADIATION ON HUMANS IT WILL THEN BE POSSIBLE HE WROTE TO UNDERSTAND BETTER THE INFLUENCE OF RADIATION ON COMBAT EFFECTIVENESS SO CAUGHT UP IN HIS CRITICISMS OF THE VICTIMS OF THE EXPERIMENTS AND THEIR LAWYERS MR BOOT NEVER QUESTIONS DR SAENGER'S RECENT CONGRESSIONAL TESTIMONY THAT TREATMENT WAS GIVEN ONLY IF BENEFIT TO THE PATIENT WAS ANTICIPATED NOR DOES HE QUESTION DR SAENGER'S ASSERTION THAT ALL SUBJECTS PROVIDED INFORMED CONSENT MR BOOT LIKELY NEVER READ DR SAENGER'S STUDIES IN WHICH HE SAYS THAT RESEARCHERS WERE NOT TO DISCUSS THE POSSIBLE SIDE EFFECTS OF THE RADIATION WITH THE SUBJECTS BECAUSE TO DO SO MIGHT INFLUENCE THE SUBJECTS' RESPONSE HOW ONE MIGHT ASK CAN ONE GIVE INFORMED CONSENT IF INFORMATION REGARDING ALL SIDE EFFECTS IS TO BE WITHHELD NOR CAN DR SAENGER TRUTHFULLY DENY THAT NONE OF THE SUBJECTS DURING THE FIRST FIVE YEARS OF THE EXPERIMENTS EVER EVEN SIGNED A CONSENT FORM FINALLY DR SAENGER CANNOT DENY THAT THE MAJORITY OF THOSE SELECTED TO BE SUBJECTS WERE UNEDUCATED HAD A MEAN IQ OF 87 AND ACCORDING TO HIS 1969 STUDY WERE OVERWHELMINGLY NEGRO SEE RELATED LETTER LETTERS TO THE EDITOR VANDERBILT STUDY DIDN'T ENDANGER PARTICIPANTS WSJ MAY 3 1994 SEE RELATED LETTERS LETTERS TO THE EDITOR THE HYSTERICAL FALLOUT OVER NUCLEAR MEDICINE WSJ MAY 11 1994 9404200059 9405030084 YY94 MM05 9405110120 940418 REVIEW & OUTLOOK EDITORIAL NUCLEAR WAKEUP CALL NORTH KOREA'S NUCLEAR THREAT WOKE UP A LOT OF FOLKS WHO THOUGHT THEY'D BEEN RELIEVED OF THINKING ABOUT SUCH WORRIES WHEN THE COLD WAR ENDED DON'T THINK ABOUT TAKING ANY NUCLEAR NAPS FOR A LONG TIME EITHER CONSIDER THE CASE OF INDIA AND PAKISTAN WASHINGTON LATELY HAS GIVEN ITSELF THE MISSION OF STOPPING THE NUCLEAR ARMS RACE BETWEEN INDIA AND PAKISTAN AS IF SUCH A THING WERE A PLAGUE FROM MARS IT DOESN'T COME FROM MARS BUT RATHER FROM THE STRATEGIC DILEMMA CONFRONTING THESE TWO RIVALS IN SOUTH ASIA WASHINGTON NOW SEEMS TO ACCEPT THAT IT ONLY MADE THINGS WORSE WITH THE PRESSLER AMENDMENT WHICH CUT OFF MILITARY AID TO PAKISTAN FOUR YEARS AGO THE EROSION OF THE FIGHTING READINESS OF PAKISTAN'S INVENTORY OF USSUPPLIED AIRCRAFT TANKS AND COMBAT VEHICLES LEFT ISLAMABAD FEELING MORE NAKED THAN BEFORE WITHOUT A CREDIBLE NUCLEAR DETERRENT THE CLINTON ADMINISTRATION HAS BEEN ANGLING FOR A WAIVER TO RESUME DELIVERY OF F16 FIGHTERS THAT PAKISTAN HAS ALREADY PAID FOR THE ADMINISTRATION IN RETURN WANTS A PAKISTANI PROMISE TO STOP MESSING AROUND WITH FISSILE MATERIALS THE LINKAGE BETWEEN CONVENTIONAL AND NUCLEAR DEFENSES MAY BE A GOOD ONE IN THEORY BUT PUTS THE CART BEFORE THE HORSE THE PRINCIPLE THE ADMINISTRATION SHOULD OBSERVE IF NOT ADVERTISE IS THAT PAKISTAN OUGHT TO BE SUFFICIENTLY WELLARMED THAT IT CAN DEFEND ITSELF WITHOUT REACHING FOR THE NUCLEAR TRIGGER AS THINGS ARE SET UP NOW THE PAKISTANI BOMB IS EXPECTED NOT ONLY TO KEEP INDIA'S OWN NUCLEAR SWORD IN THE SCABBARD ISLAMABAD RELIES ON NUCLEAR THREATS TO DETER CONVENTIONAL ATTACK THIS HEIGHTENS THE FEAR THAT ANY OF THE TWO COUNTRIES' VARIOUS FLASHPOINTS COULD ESCALATE INTO A NUCLEAR SHOWDOWN THAT DOESN'T EXACTLY REPRESENT AN IMPROVEMENT IN THE REGION'S COMFORT LEVEL PAKISTAN REPORTEDLY MADE EXPLICIT THREATS TO BOMB INDIAN NUCLEAR POWER PLANTS AFTER PAKISTANI INTELLIGENCE GOT WIND OF INDIAN PLANS IN 1984 TO BOMB PAKISTAN'S NUCLEAR RESEARCH LAB AT KAHUTA BARELY VEILED NUCLEAR THREATS WERE AIRED FOUR YEARS AGO AS THE KASHMIR PROBLEM HEATED UP AND OF COURSE THE TWO COUNTRIES HAVE FOUGHT THREE CONVENTIONAL WARS SINCE 1947 THE IRONY IS THAT INDIA'S NUCLEAR PROGRAM IS ULTIMATELY AIMED AT CHECKING CHINA AND AT INDULGING INDIA'S IMAGE OF ITSELF AS AN INCIPIENT GREAT POWER NEW DELHI HAS INVESTED DECADES AND BILLIONS OF DOLLARS IN ITS NUCLEAR AND MISSILE RESEARCH COMPLEX ITS ARMY OF TECHNOLOGISTS IS NOW WELL ALONG IN DEVELOPING BALLISTIC MISSILES AND INTERNAL GUIDANCE SYSTEMS ADEQUATE TO DELIVER ATOMIC WARHEADS TO TARGETS AS FAR AWAY AS BEIJING THE INDIANS ARE ALREADY SCOUTING THE NEXT PHASE THE DEVELOPMENT OF INTERCONTINENTAL MISSILES WITH THERMONUCLEAR WARHEADS PAKISTAN MAY NOT BE THE PRIMARY REASON FOR THIS ARSENAL'S EXISTENCE BUT IT LIVES IN THE SHADOW OF INDIA'S NUCLEAR AMBITIONS WITH A MUCH SMALLER POPULATION AND ECONOMY PAKISTAN MIGHT HAVE OPTED FOR THE FINLANDIZATION ROUTE BUT INSTEAD ISLAMABAD HAS CHOSEN MILITANTLY TO DEFEND ITS INDEPENDENCE FROM INDIA PRIMARILY BY DEMONSTRATING ITS ABILITY TO MAKE THINGS UNCOMFORTABLE FOR THE INDIANS IT DOES THIS BY SUPPORTING A SEPARATIST REVOLT IN THE INDIAN STATE OF KASHMIR WHICH TIES UP ABOUT 40 OF THE INDIAN MILITARY ON INTERNAL SECURITY DUTIES AND BY ARMING ITSELF TO FIGHT THE INDIAN ARMED FORCES HEADON IF NECESSARY THIS APPROACH TO ASSURING ITS SECURITY MAY ANNOY WASHINGTON WHICH PROBABLY CARES MORE THESE DAYS ABOUT CULTIVATING ECONOMIC TIES WITH INDIA AND MAY EVEN HOPE SOMEDAY TO FASHION A STRATEGIC PARTNERSHIP WITH INDIA BUT IT DOESN'T MAKE PAKISTAN A ROGUE NATION AMERICAN INTELLIGENCE OFFICIALS HAVE NOTED WITH APPROVAL THAT ISLAMABAD HAS STEADFASTLY REBUFFED IRANIAN APPROACHES ON SHARING NUCLEAR TECHNOLOGY WE HOPE THAT THE CLINTON ADMINISTRATION DOESN'T COME TO FANCY ITSELF THE BEARER OF SOLUTIONS TO THE KASHMIR PROBLEM WHICH IS ROOTED IN ETHNORELIGIOUS COMPULSIONS AS WELL AS REGIONAL POWER JOCKEYING ON THE OTHER HAND ANYTHING THAT RATCHETS DOWN THE STRESS LEVEL GENERALLY WOULD TEND TO LESSEN PAKISTAN'S INCENTIVE TO INVEST IN THIS PROXY WAR TO DATE THOUGH THE ADMINISTRATION HASN'T MADE THINGS BETTER WITH ITS MALADROIT EARLY DIPLOMACY A COMEDY OF WITLESS ERRORS THAT OFFENDED THE AMOURPROPRE OF NEW DELHI BUT AT LEAST THE ADMINISTRATION CAN REMIND BOTH COUNTRIES THAT THEY HAVE NO INTEREST IN HAVING THEIR CITIES INCINERATED FOR THE SAKE OF THE KASHMIRIS AND IN THE PROCESS IT CAN REMIND THE REST OF US THAT THE NUCLEAR ISSUE STILL DESERVES ATTENTION SEE RELATED LETTER LETTERS TO THE EDITOR KEEP THE NUCLEAR GENIE CORKED WSJ MAY 11 1994 9404180026 YY94 MM05 9405110115 940413 THE RADIATION SCARE'S REAL FALLOUT BY MAX BOOT IN NOVEMBER THE ALBUQUERQUE TRIBUNE PUBLISHED THE PLUTONIUM EXPERIMENT A SERIES OF STORIES BY REPORTER EILEEN WELSOME ABOUT RADIATION TESTS CONDUCTED BY THE US GOVERNMENT ON HUMAN SUBJECTS IN 194546 MS WELSOME'S REVELATIONS HAVE BEEN SPLASHED ACROSS FRONT PAGES FROM COAST TO COAST AND YESTERDAY WERE REWARDED WITH A PULITZER PRIZE UNFORTUNATELY THE HYPE OVER THE RADIATION EXPERIMENTS FAR EXCEEDS THEIR NEWS VALUE THERE IS NOTHING PARTICULARLY NEW HERE SOME OF THE EXPERIMENTS HAVE BEEN PUBLIC KNOWLEDGE AT LEAST SINCE 1971 WHEN THE WASHINGTON POST REVEALED THAT PATIENTS HAD BEEN IRRADIATED AT THE UNIVERSITY OF CINCINNATI THE EXPERIMENT THAT MS WELSOME FOCUSED ON WAS FIRST REPORTED IN 1976 IN A NEWSLETTER CALLED SCIENCE TRENDS ANTINUCLEAR ACTIVISTS SOME ASSOCIATED WITH UNIONS REPRESENTING NUCLEARPLANT WORKERS PICKED UP THE TRAIL AND TRIED TO GET THE PRESS AND POLITICIANS INTERESTED IN OTHER EXPERIMENTS THIRTYONE TESTS WERE DOCUMENTED IN A 1986 REPORT ISSUED BY REP ED MARKEY D MASS AMERICAN NUCLEAR GUINEA PIGS THREE DECADES OF RADIATION EXPERIMENTS ON US CITIZENS DESPITE THE OVERWROUGHT TITLE THE PRESS PAID LITTLE ATTENTION THE STORY WAS BURIED DEEP IN THE NEW YORK TIMES THE MOST TROUBLING EXPERIMENT REPORTED BY REP MARKEY'S STAFF AND SUBSEQUENTLY BY MS WELSOME INVOLVED AN ATTEMPT IN 194546 BY THE MILITARY TO FIGURE OUT HOW MUCH PLUTONIUM PEOPLE COULD SAFELY BE EXPOSED TO THIS WAS NOT SOME SADISTIC DESIRE BY THE MILITARYINDUSTRIAL COMPLEX IT WAS OF VITAL IMPORTANCE BECAUSE THOUSANDS OF WORKERS WERE TOILING ON THE CRASH US ATOMIC PROGRAM ACCORDING TO PATRICIA DURBIN A BIOPHYSICIST WHO WORKED WITH THE SCIENTISTS WHO CONDUCTED THE TESTS THE ALTERNATIVE WAS TO UTILIZE THE ENTIRE WORK FORCE HANDLING PLUTONIUM HUNDREDS OF YOUNG AND VIGOROUS PEOPLE IN A GIANT EXPERIMENT TO SEE WHETHER THE ANIMAL DATA WERE PROVIDING THE RIGHT INFORMATION ABOUT HOW MUCH PLUTONIUM THE BODY COULD TAKE TRACE ELEMENTS OF PLUTONIUM239 A RADIOACTIVE ISOTOPE WERE ADMINISTERED TO 18 PEOPLE ALL OF WHOM HAD BEEN CERTIFIED BY THEIR PHYSICIANS AS NOT EXPECTED TO LIVE MORE THAN 10 YEARS TWELVE OF THE VOLUNTEERS DIED AS EXPECTED SHORTLY AFTER THE EXPERIMENTS THE REST LIVED FOR YEARS AFTERWARD WITH THE FINAL ONE NOT DYING UNTIL 1991 JOHN RUNDO A BIOPHYSICIST AT THE ARGONNE NATIONAL LABORATORY DID A FOLLOWUP STUDY IN 1973 ON ALL THE VOLUNTEERS BOTH LIVING AND DEAD THE EVIDENCE HE TOLD CONGRESS IN FEBRUARY IS THAT ALL THE PERSONS INJECTED WITH PLUTONIUM DIED OF CAUSES UNRELATED TO THEIR INJECTED RADIOACTIVITY THE MOST TROUBLING ELEMENT OF THE PLUTONIUM TESTS WAS THE LACK OF INFORMED CONSENT GREGG HERKEN A HISTORIAN FROM THE NATIONAL AIR AND SPACE MUSEUM TOLD CONGRESS THAT MOST OF THE VOLUNTEERS WERE INFORMED ONLY THAT THEY WERE TO RECEIVE A RADIOACTIVE SUBSTANCE HAVING CERTAIN PROPERTIES AT THE TIME EVERYTHING RELATED TO THE ATOMICBOMB PROJECT EVEN THE WORD PLUTONIUM WAS STRICTLY CLASSIFIED BUT IT'S DOUBTFUL THAT ANY VOLUNTEERS IN 1945 OR 1946 EVEN IF THEY HAD KNOWN ABOUT THE PLUTONIUM COULD HAVE GIVEN INFORMED CONSENT FOR SUCH EXPERIMENTS AT THE TIME AFTER ALL VERY LITTLE WAS KNOWN ABOUT THE DANGERS OF PLUTONIUM OR ABOUT MANY OTHER TOXIC SUBSTANCES EVEN YEARS LATER SHOE STORES ROUTINELY OFFERED TO XRAY CUSTOMERS' FEET OBLIVIOUS TO RADIATION HAZARDS THE SHOE STORES ASKED FOR CONSENT BUT IT WASN'T INFORMED CONSENT SAYS THOMAS JUKES A RETIRED BIOPHYSICIST AT THE UNIVERSITY OF CALIFORNIA BERKELEY IT WAS THE SAME THING WITH MEDICAL EXPERIMENTS THIS HAS NOW BECOME AN ISSUE BECAUSE OF MS WELSOME'S PULITZERWINNING ARTICLES HER STORIES DIDN'T CONTRIBUTE MUCH NEW INFORMATION ABOUT THE SCOPE OR NATURE OF THE TESTING BUT THEY ADDED A HUMAN INTEREST SPIN SHE MANAGED TO IDENTIFY A NUMBER OF THE PEOPLE INVOLVED IN THE EXPERIMENTS AND INTERVIEWED THEIR RELATIVES AT LENGTH EVEN HER COMPELLING WORK MIGHT HAVE GONE THE WAY OF THE MARKEY REPORT WERE IT NOT FOR ENERGY SECRETARY HAZEL O'LEARY WHO HELD A NEWS CONFERENCE ON DEC 7 TO PUBLICLY ACKNOWLEDGE THE EXISTENCE OF THE PLUTONIUM EXPERIMENTS AND MANY OTHERS HOW DID MRS O'LEARY FIND OUT ABOUT THE TRIBUNE ARTICLES ACCORDING TO AN INTERVIEW SHE GAVE TO THE NEW YORK TIMES THE ARTICLES WERE BROUGHT TO HER ATTENTION BY A TOP AIDE DAN REICHER MR REICHER IS A FORMER LAWYER FOR THE ANTINUCLEAR NATURAL RESOURCES DEFENSE COUNCIL WHILE AT THE NRDC MR REICHER FILED SUIT IN THE 1980S TO STOP THE CONSTRUCTION OF A PLUTONIUM PLANT IN IDAHO THUS THE WELSOME ARTICLES WERE USED TO ADVANCE AN ENVIRONMENTALIST AGENDA THAT TRIES TO SCARE THE PUBLIC ABOUT THE DANGERS OF RADIATION IN ORDER TO SHUT DOWN THE NUCLEAR POWER INDUSTRY THE BATON IN THE RACE TO HYPE THE RADIATION TESTS HAS NOW PASSED FROM ANTINUCLEAR ACTIVISTS AND REPORTERS TO TORT LAWYERS A GROUP OF SAN FRANCISCO LAWYERS INCLUDING THE FABLED KING OF TORTS MELVIN BELLI HAS FILED CLASSACTION SUITS ON BEHALF OF PEOPLE WHO WERE INVOLVED IN EXPERIMENTS AT VANDERBILT UNIVERSITY IN THE 1940S AND THE UNIVERSITY OF CINCINNATI IN THE 1960S OUR CASES CAME TO LIGHT AS A RESULT OF THE DISCLOSURES BY HAZEL O'LEARY AND BY EILEEN WELSOME'S WORK IN ALBUQUERQUE SAYS ROBERT NELSON ONE OF THE LAWYERS WORKING WITH MR BELLI THE CINCINNATI EXPERIMENTS WERE THE SUBJECT OF A CONGRESSIONAL HEARING ON MONDAY WHICH NOT INCIDENTALLY GAVE PLENTY OF FAVORABLE PUBLICITY TO MR BELLI'S CLIENTS THE LAWYERS CHARGE THAT EUGENE SAENGER A RADIOLOGIST AT THE UNIVERSITY OF CINCINNATI KNOWINGLY EXPOSED PATIENTS TO LETHAL DOSES OF RADIATION IN ORDER TO TEST THEIR REACTIONS FOR THE PENTAGON WHAT ACTUALLY HAPPENED IS THAT DR SAENGER WAS TESTING THE USE OF RADIATION THERAPY INSTEAD OF CHEMOTHERAPY FOR PATIENTS WITH ADVANCED CANCERS DR SAENGER ALSO RECEIVED DEFENSE DEPARTMENT FUNDING TO REPORT ON THE EFFECTS OF RADIATION BUT HE STRESSED TO CONGRESS TREATMENT WAS GIVEN ONLY IF BENEFIT TO THE PATIENT WAS ANTICIPATED BETWEEN 1960 AND 1971 HE IRRADIATED 88 TERMINALLY ILL VOLUNTEERS IN AN EXPERIMENT REVIEWED AND APPROVED BY OTHER SCIENTISTS ALL OF THE VOLUNTEERS HAD THE RISKS EXPLAINED TO THEM AND IN THE LATER YEARS SIGNED CONSENT FORMS SAYING THEY UNDERSTOOD THAT WHOLE OR PARTIAL BODY IRRADIATION WOULD BE PERFORMED ON THEM NOW MR BELLI'S CLIENTS SAY THEY DON'T REMEMBER IF THEY OR THEIR RELATIVES SIGNED SUCH FORMS TWENTY OF THE PATIENTS LIVED LONGER THAN A YEAR ONE LIVED NINE YEARS AND ONE PATIENT DONNA WHITE CHRISTY WHO HAS A TYPE OF BONE MARROW CANCER KNOWN AS EWINGS SARCOMA REMAINS ALIVE TODAY WHAT'S EVEN MORE AMAZING THAN HER LONGEVITY IS THAT MS CHRISTY IS NOW MR BELLI'S PLAINTIFF IN THE SUIT AGAINST THE UNIVERSITY AS R JOSEPH PARKER DR SAENGER'S ATTORNEY NOTES BUT FOR THAT TREATMENT THAT WOMAN WOULD BE DEAD TODAY THE CHANCES OF SURVIVAL WITH EWING'S SARCOMA ARE 10 JUST BECAUSE THE BELLI LAWSUITS ARE BASELESS DOESN'T MEAN THEY'LL GET THROWN OUT OF COURT NOR DOES IT MEAN THAT OTHERS WON'T BE FILED PLENTY OF LAWYERS ARE SNIFFING AROUND THE RADIATION EXPERIMENTS IN SEARCH OF LIKELY PLAINTIFFS IT DOES PRESENT ANOTHER PRACTICE OPPORTUNITY FOR THE EVERGROWING NUMBER OF LAWYERS IN WASHINGTON TIMOTHY MAY THE MANAGING PARTNER OF THE POWERHOUSE FIRM PATTON BOGGS & BLOW RECENTLY TOLD LEGAL TIMES THE HISTORY OF OTHER RADIATION LAWSUITS PROVIDES A PRETTY GOOD CLUE ABOUT WHAT'LL HAPPEN IN THE 1980S THOUSANDS OF ALLEGED RADIATION VICTIMS INCLUDING VETERANS NUCLEAR PLANT WORKERS AND THOSE WHO LIVED NEAR ATOMIC FACILITIES OR TESTING GROUNDS FILED SUITS AGAINST THE GOVERNMENT AND VARIOUS CONTRACTORS A 1950 SUPREME COURT RULING THAT HELD THE GOVERNMENT IS IMMUNE FROM SUITS BROUGHT BY SOLDIERS EXPOSED TO ATOMIC RADIATION SHOULD HAVE QUASHED MANY OF THE ACTIONS BUT INVENTIVE LAWYERS FOUND A WAY AROUND THAT THEY SUED THE CONTRACTORS TRYING TO STEM THE FLOW OF LITIGATION CONGRESS IN 1984 LIMITED DEFENSE CONTRACTORS' LIABILITY THEN IN 1988 LAWMAKERS PASSED A RADIATION VICTIMS COMPENSATION ACT OFFERING MONEY TO SURVIVORS IN RETURN FOR A PLEDGE NOT TO SUE BUT LIKE THE ENERGIZER BUNNY MANY OF THE SUITS KEEP GOING AND GOING AND GOING THEY HAVE EVEN SPAWNED A LITTER OF LAWYERS LIKE FORMER INTERIOR SECRETARY STEWART UDALL WHO DO ALMOST NOTHING ELSE SO LOOK FOR LONG YEARS OF COSTLY LAWSUITS OVER RADIATION EXPERIMENTS WHILE THAT'S GOING ON ANOTHER SET OF LAWYERS WILL BE LOBBYING BACK AND FORTH IN WASHINGTON OVER WHAT RESPONSE IF ANY THE FEDERAL GOVERNMENT SHOULD MAKE AS USUAL IN CASES OF THIS KIND IT'LL BE THE ATTORNEYS NOT THE ALLEGED VICTIMS WHO'LL RECEIVE THE MOST COMPENSATION THAT'S THE FALLOUT FROM THE RADIATION EXPERIMENTS STORY UNCOVERED BY EILEEN WELSOME MR BOOT IS AN ASSISTANT FEATURES EDITOR ON THE JOURNAL EDITORIAL PAGE SEE RELATED LETTER LETTERS TO THE EDITOR HUMAN GUINEA PIGS DESERVE JUSTICE WSJ APRIL 20 1994 SEE RELATED LETTERS LETTERS TO THE EDITOR THE HYSTERICAL FALLOUT OVER NUCLEAR MEDICINE WSJ MAY 11 1994 9404130072 9404200091 YY94 MM04 YY94 MM05 9405110110 940405 BUSINESS WORLD A SUDDEN CHALLENGE TO PETE WILSON BY TIM W FERGUSON PALO ALTO CALIF IT WAS APRIL FOOL'S DAY BUT HIGHTECH ENTREPRENEUR RON K UNZ WAS ENTIRELY SERIOUS HE WAS EXPLAINING WHY THIS WEEK HE'LL BEGIN A SURPRISE LIGHTNING BID TO DENY THE REPUBLICAN RENOMINATION TO GOV PETE WILSON ARGUABLY THE SECOND MOST POWERFUL ELECTED OFFICIAL IN THE LAND POLITICS HAS BEEN MR UNZ'S INTELLECTUAL HOBBY FUNDING THINK TANKS OR THE ELECTORAL AMBITIONS OF OTHERS SUDDENLY HE SAID THE MOMENT WAS HIS TO SEIZE FACED WITH A SITUATION WHERE YOU HAVE AN INCREDIBLY UNPOPULAR GOVERNOR OF CALIFORNIA UNPOPULAR IN HIS OWN PARTY AND UNPOPULAR IN THE STATE WITH NO GOP CHALLENGER FACING HIM AND WITH POLLING DATA INDICATING THAT SOMEONE OF MY BACKGROUND AND MY VIEWS WOULD HAVE A VERY REASONABLE CHANCE OF WINNING IT'S REALLY THE OPPORTUNITY OF A LIFETIME SUCH IS THE BRASHNESS OF SILICON VALLEY WHERE MR UNZ MOVED HIS SOFTWARE FIRM WALL STREET ANALYTICS FROM NEW YORK TWO YEARS AGO IT SELLS TO INVESTMENT BANKS AND BROKERAGE HOUSES A TOOL FOR DESIGNING AND PRICING REMICS THE MORTGAGE INSTRUMENT THAT EXPLODED IN THE 1980S FOR MR UNZ'S COMPANY THAT MEANS YEARLY PROFITS IN THE SEVEN FIGURES AND FOR HIM THE ABILITY TO SINK 1 MILLIONPLUS INTO MEDIA OVER THE NEXT FEW WEEKS TO BUILD CREDIBILITY FOR A PRIMARY ELECTION JUST TWO MONTHS AWAY IT'S A LONG SHOT BUT MORE A ROLL OF THE DICE RATHER THAN ONE IN A MILLION OR ONE IN A HUNDRED HE SAID THE PEROT PHENOMENON AND THE COLLAPSE OF RULING PARTIES IN CANADA AND ITALY EMBOLDEN MR UNZ HIS EFFORT IS A POTENTIAL DISASTER FOR MR WILSON WHO WAS COUNTING HIS GOP CHICKENS IN PREPARATION FOR THE FALL LEG OF A STORYBOOK COMEBACK TURNS OUT HIS ADMINISTRATION NEVER GOT SQUARE WITH THE REAGANITE MOVEMENT IN THE PARTY FOR MONTHS ACTIVISTS ON THE RIGHT SOUGHT RECOGNIZABLE FIGURES TO LEAD A CHALLENGE TO THE GOVERNOR WHOSE HARDLINE RHETORIC AGAINST STREET CRIME AND ILLEGAL IMMIGRATION HAS NOT REDEEMED HIM FOR RAISING TAXES AND OTHERWISE FACILITATING BIG GOVERNMENT EVEN AS THEIR EFFORTS APPEARED TO FAIL MR UNZ WAS PLOTTING AN AMBUSH WITH ARNOLD STEINBERG A REPUBLICAN POLLSTER AND STRATEGIST GOING BACK TO JAMES BUCKLEY'S 1970 SENATE VICTORY ON THE CONSERVATIVE LINE IN NEW YORK LORELEI KINDER NATIONAL POLITICAL COORDINATOR FOR REAGANBUSH IN 1980 FORMALLY HEADS MR UNZ'S DRIVE BUT WITH FEW PROMINENT REPUBLICANS LIKELY TO RISK THE IRE OF A STILLPOWERFUL GOVERNOR THE CAMPAIGN'S ESSENCE WILL BE TV AND RADIO SPOTS HIGHLIGHTING MR UNZ'S OWN PERSONA AND VIEWS THE INITIAL BUY MATCHES MICHAEL HUFFINGTON'S INTRODUCTION OF HIS US SENATE BID DURING THE WINTER OLYMPICS THE AIM IS TO PROJECT SERIOUSNESS TO CONTRAST A CANDIDATE SINCERE ABOUT IDEAS WITH A GOVERNOR WHO IS REACTIVE OPPORTUNISTIC AND ULTIMATELY INEFFECTUAL ALSO THE PROJECT PITS A SCHOOLTEACHER'S SON FROM THE SAN FERNANDO VALLEY WHO ACHIEVED STUNNING BUSINESS SUCCESS AGAINST A PREPSCHOOLER THOUGH LATER A MARINE WHO'S BEEN IN GOVERNMENT FOR NEARLY 30 YEARS WHO THEN IS THIS GUY UNZ AND WHAT DOES HE BELIEVE HIS BASIC PROFILE 32 YEARS OLD SINGLE AND JEWISH ISN'T TAILORMADE FOR A GOP PRIMARY NEITHER PERHAPS IS THE HARVARDCAMBRIDGESTANFORD ROUTE HE WAS TAKING IN THEORETICAL PHYSICS UNTIL A SUMMER AT FIRST BOSTON PERSUADED HIM TO ABANDON A PHD IN FAVOR OF COMPUTERIZED FINANCE WITH THREE FELLOW ROCKET SCIENTISTS TWO OF THEM ACTUALLY WORKED AT NASA HE HAS THE COMPANY IN ORBIT JUST SIX YEARS AFTER BLASTOFF WALL STREET ANALYTICS EPITOMIZES THE VIRTUAL CORPORATION ITS ADDRESS IS A MAIL DROP THE PRINCIPALS WORK FROM THEIR HOMES IN SILICON VALLEY THE UNZ CAMPAIGN BOWING TO TRADITION HAS SET UP HEADQUARTERS IN BURBANK MR UNZ'S LARGE NEW HOUSE IN EXPENSIVE PALO ALTO IS HIS ONLY APPARENT ACCOMMODATION TO WEALTH ITS PRIMARY FURNISHINGS ARE COMPUTERS AND TELEPHONE EQUIPMENT HE DRIVES A SMALL CAR AND CHOSE A BASIC PASTA PLACE FOR A DINNER CHAT WHAT HE OBVIOUSLY WILL SPEND MONEY ON IS PUBLIC POLICY STARTING IN THE 1980S HE READ THOMAS SOWELL AND DREW FROM NEOLIBERALISM IN THE NEW REPUBLIC NEOCONSERVATISM IN COMMENTARY AND FUNCTIONAL LIBERTARIANISM IN THE ECONOMIST TODAY HE BACKS LINDA CHAVEZ'S WORK FOR THE MANHATTAN INSTITUTE AND DAVID HOROWITZ'S CULTURAL CRITICISM OUT OF LOS ANGELES THUS IT'S NO SURPRISE THAT AFTER ECONOMIC GROWTH HIS PLATFORM STRESSES CHANGING SOCIALWELFARE POLICY AND FIGHTING INSTITUTIONALIZED BILINGUALISM MULTICULTURALISM AND QUOTAS HIS FISCAL RECIPE NOT YET SPECIFIC IS TO LANCE THE SPENDING BOIL BY OFFERING MASSIVE TAX CUTS IN RETURN FOR MODEST REDUCTIONS IN WHAT MOST PEOPLE GET FROM THE PUBLIC SECTOR VOUCHERS AND COMPETITIVE CONTRACTING WOULD MINIMIZE CUTS IN SERVICES BY BOOSTING PRODUCTIVITY SCHOOLS ARE AT THE TOP OF THE LIST UNZ CAMPAIGNERS ARE BITTER AT GOV WILSON'S OPPOSITION TO THE SCHOOLCHOICE INITIATIVE LAST NOVEMBER AND OTHER ASSUAGING OF THE BIGGEST BULLY OF STATE POLITICS THE TEACHERS' UNIONS WHERE HEIGHTENED CRIME FEARS LEAD MR WILSON TO DEMAND A WIDER DEATH PENALTY AND EXPENSIVE PRISON BEDS MR UNZ'S OWN LAWN'ORDER STANCE KEEPS ONE EYE ON PATHOLOGIES BRED BY HANDOUTS HE FEARS AMERICAN SOCIETY'S LOSS OF MOORINGS IS OVERWHELMING THE PROMISE OFFERED BY ITS TECHNOLOGY UNLIKE THE GOVERNOR WHO EARLY IN HIS TERM PROPOSED NEW PREVENTIVE PROGRAMS TO DEAL WITH ANTISOCIAL YOUTH MR UNZ WANTS TO REDUCE THE PANOPLY OF BENEFITS THAT'S WHY THE IMMIGRATION ISSUE IS IN SOME WAYS SO USEFUL HE SAID BROACHING A REDHOT TOPIC IT FORCES PEOPLE TO COME TO TERMS WITH THE CONSEQUENCES OF THE SOCIAL WELFARE STATE IN A WAY THAT THEY MIGHT OTHERWISE HAVE BEEN RELUCTANT TO DO GOV WILSON CITES DEMAND ON THE PUBLIC SECTOR AS A REASON FOR ATTACKING UNDOCUMENTED ENTRIES WHILE MR UNZ TURNS THAT AROUND USING THE NEWCOMER LOAD AS A REASON TO QUESTION OVERALL LARGESS TAXPAID BENEFICENCE HE SAID THREATENS THE HISTORIC OPENNESS AND OPPORTUNITY OF CALIFORNIA FORMATIVE FOR MR UNZ WERE THE FIVE YEARS HE LIVED IN JACKSON HEIGHTS QUEENS THIS IMMIGRANT BASTION THOUGH WITNESS TO VIOLENCE OVER CRIMINALIZED DRUGS HAD A SOCIAL FABRIC THAT IS A MODEL FOR URBAN AMERICA IMMIGRATION ALSO CALLS ATTENTION TO ETHNIC SEPARATISM MR UNZ SAID CONTINUED BALKANIZATION OF THE US AND THE EXTENSION OF PREFERENTIAL TREATMENT WILL ENCOURAGE SPOILS POLITICS THAT FEEDS ON DIVISION IF ASSIMILATED HE SAID ASIAN AND HISPANIC CULTURES ARE NATURAL CONSTITUENCIES FOR THE GOP'S FREEMARKET CONSERVATISM ELECTION CAMPAIGNS INVOLVE MORE THAN IDEAS OF COURSE AND THIS IS A HIGHLY SPECULATIVE ONE MR UNZ HASN'T GIVEN A POLITICAL SPEECH SINCE HIGH SCHOOL BUT IF HIS EFFORT DOESN'T SIMPLY BLAME EVERY ILL OF CALIFORNIA ON PETE WILSON AND INSTEAD FORCES THE GOVERNOR AND HIS PARTY TO ENGAGE ON THE ESSENTIAL QUESTIONS THEN THIS ROLL OF THE DICE CAN HAVE A REAL PAYOFF SEE RELATED LETTER LETTERS TO THE EDITOR MY BUSINESS PARTNER'S CRUEL APRIL SURPRISE WSJ MAY 11 1994 9404050075 YY94 MM05 9405110102 940427 TEXAS JOURNAL HEARD IN TEXAS MANAGER AT AIM ADVISORS SHOOTS FOR BULL'SEYE ON SMALLCAP ISSUES BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON DON'T KNOCK BOB KIPPES FOR HIS AGE OR HIS BABYFACE APPEARANCE TAKE A LOOK INSTEAD AT THE PERFORMANCE OF THE 28YEAROLD MONEY MANAGER SINCE HE TOOK OVER THE BUY AND SELL DECISIONS OF AIM ADVISORS' AGGRESSIVE GROWTH FUND AT THE END OF JUNE 1992 THE FUND HAS POSTED A CUMULATIVE RETURN OF 7798 THROUGH LATE APRIL 1994 THAT MAKES IT THE BESTPERFORMING AGGRESSIVE GROWTH FUND IN THE COUNTRY FOR THAT PERIOD ACCORDING TO LIPPER ANALYTICAL SERVICES INC LIPPER'S INDEX OF SMALLCOMPANY GROWTH FUNDS BY COMPARISON RETURNED 336 IN FACT MR KIPPES'S STELLAR PERFORMANCE HAS SUCKED IN SO MUCH MONEY FROM INVESTORS AS MUCH AS 6 MILLION A DAYTHAT AIM HAS OPTED TO CLOSE THE FUND TO NEW INVESTORS ON MAY 2 AS A FUND FOCUSED SOLELY ON SMALLCAP STOCKS AGGRESSIVE GROWTH COULDN'T GROW MUCH LARGER WITHOUT DEFEATING ITS PURPOSE TO STAKE OUT POSITIONS IN STOCKS WITH MARKET CAPITALIZATIONS UNDER 750 MILLION INDEED MANY HOLDINGS BARELY TOP 100 MILLION TO BENEFIT FROM THE PRICE MOVEMENTS OF SUCH SMALL STOCKS THE FUND CAN'T BE TOO LARGE THE AGGRESSIVE GROWTH FUND WASN'T PART OF THE AIM STABLE OF FUNDS UNTIL SUMMER 1992 WHEN AIM BOUGHT THE FUND FROM INSURANCE GIANT CIGNA AT THAT TIME THE FUND WAS TINY JUST 14 MILLION AND WASN'T MUCH OF A PERFORMER SPENDING MOST OF ITS LIFE IN THE BOTTOM HALF OF MORNINGSTAR MUTUAL FUNDS' RATINGS WHEN IT WAS SOLD TO AIM MORNINGSTAR DROPPED COVERAGE OF THE FUND BECAUSE OF ITS SIZE AND LACK OF PERFORMANCE TIMES HAVE CHANGED AGGRESSIVE GROWTH UNDER MR KIPPES LEAPED INTO THE TOP 10 OF ALL AGGRESSIVE GROWTH FUNDS IN 1992 1993 AND THE FIRST QUARTER OF 1994 ACCORDING TO MORNINGSTAR AND ASSETS HAVE BALLOONED THE FUND CLOSED 1993 WITH MORE THAN 273 MILLION UNDER MANAGEMENT AND HAS SINCE GROWN TO NEARLY 450 MILLION MORNINGSTAR AGAIN COVERS THE FUND AND AWARDS IT A TOPRANKED FIVESTAR RATING THE ESCALATING ASSETS SAYS PAMELA J FARRELL A MORNINGSTAR ANALYST RESULT FROM THE FUND'S STELLAR PERFORMANCE UNDER THE STEWARDSHIP OF MR KIPPES WHO HAS TAPED TO HIS COMPUTER TWO REMINDERS SPELLED OUT IN LARGE BLACK TYPE ONE READS DISCIPLINE THE OTHER EARNINGS THOSE WORDS REFER TO AIM'S INVESTMENT PHILOSOPHY BUY ON STRENGTHENING EARNINGS SELL ON WEAKENING EARNINGS PERIOD THAT HELPED AGGRESSIVE GROWTH POST A MODERATE 074 GAIN IN 1994'S FIRST QUARTER A PERIOD WHEN THE AVERAGE AGGRESSIVE GROWTH FUND TRACKED BY LIPPER LOST 347 IN THE WEEKS SINCE THE FIRST QUARTER ENDED AGGRESSIVE GROWTH HAS FALLEN 146 AMID THE STOCK MARKET'S VOLATILITY WHILE ITS PEERS HAVE DROPPED 261 HE WAS ALSO HELPED BY FEARS OVER PRESIDENT CLINTON'S HEALTHCARE REFORM WHILE OTHERS DUMPED HEALTHCARE STOCKS DESPITE STRENGTHENING EARNINGS MR KIPPES PICKED UP COMPANIES SUCH AS MID ATLANTIC MEDICAL SERVICES A ROCKVILLE MD PROVIDER OF HEALTH MAINTENANCE ORGANIZATIONS PURCHASED FOR ABOUT 10 ADJUSTED FOR A SUBSEQUENT 3FOR2 STOCK SPLIT MID ATLANTIC HAS SOARED TO ABOUT 47 A SHARE BUT WHAT IF THE MARKET FOR SMALL STOCKS TURNS SOUR AS IT APPEARS IT MAY HAVE IN THE PAST FEW WEEKS MS FARRELL IN HER MARCH 18 REPORT ON AGGRESSIVE GROWTH SOUNDS A NOTE OF CAUTION WHEN SHE WRITES THAT THE FUND COULD BE VULNERABLE IF SMALLCAP STOCKS TAKE A TUMBLE WHILE MR KIPPES DOESN'T THINK THE FUND WILL TUMBLE HE IS RESIGNED TO THE FACT THAT THE MARKET WILL TIRE OF SMALLCAPS I'M NOT CONCERNED ABOUT THAT HE SAYS I'LL JUST CONTINUE USING OUR PHILOSOPHY OF PICKING STOCKS I MAY NOT HAVE ONE OF THE BEST RETURNS BUT I EXPECT TO STILL BE ONE OF THE 10 TOP AGGRESSIVE GROWTH FUNDS BECOMING A STOCK PICKER WASN'T HIGH ON MR KIPPES'S LIST OF THINGS TO DO AFTER COLLEGE AS A BUSINESS MAJOR AT STEPHEN F AUSTIN STATE UNIVERSITY IN NACOGDOCHES MR KIPPES WAS MORE INTERESTED IN THE WORLD OF SPORTS MAYBE HELPING A TEAM SCOUT AND PICK ATHLETES BUT AIM HIRED HIM OUT OF COLLEGE AS A RESEARCH ANALYST FOR THE COMPANY'S WEINGARTEN AND CONSTELLATION FUNDS AND HE HAS SINCE GROWN ENAMORED OF PICKING STOCKS INSTEAD OF ATHLETES IT DIDN'T HURT THAT HE HAD AS MENTORS JONATHAN SCHOOLAR AND HARRY HUTZLER WHO TOGETHER HELPED MOLD WEINGARTEN AND CONSTELLATION INTO HIGHLY SUCCESSFUL FUNDS MR HUTZLER HAS SINCE RETIRED AFTER SPENDING MORE THAN THREE YEARS UNDER THE TUTELAGE OF MESSRS SCHOOLAR AND HUTZLER MR KIPPES WAS GIVEN THE NEWLY ACQUIRED AGGRESSIVE GROWTH FUND OFFICIALLY MR SCHOOLAR WHO SITS ACROSS THE DESK FROM HIS PUPIL IS LISTED AS A COMANAGER BUT IT'S MR KIPPES WHO PULLS THE TRIGGER ON BUY AND SELL ORDERS WHEN MR KIPPES FIRST GAINED CONTROL OVER THE FUND HE QUICKLY DUMPED 95 OF THE ROUGHLY 75 HOLDINGS CIGNA HAD ACCUMULATED WHICH DIDN'T APPEAR TO HAVE ANY SPECIFIC DISCIPLINE TO DATE HE HAS PICKED UP NEARLY 300 STOCKS HE HAS ACCUMULATED A LARGE POSITION IN TECHNOLOGY AND HEALTHCARE STOCKS WHICH REPRESENT 31 AND 16 OF THE FUND RESPECTIVELY THAT'S SIMPLY WHERE EARNINGS ARE GROWING FASTEST NOW MR KIPPES SAYS INDICATIVE OF THE TRAITS HE SEEKS IN STOCKS MR KIPPES LAST WEEK BOUGHT LAM RESEARCH A FREMONT CALIF MAKER OF ETCHING EQUIPMENT USED IN THE SEMICONDUCTOR INDUSTRY THE COMPANY'S EARNINGS ARE GROWING AT ABOUT 23 A YEAR WHILE ITS PRICETOEARNINGS RATIO BASED ON THE COMING FISCAL YEAR'S EARNINGS ESTIMATES IS ABOUT 14 MANY STOCK PICKERS LIKE TO SEE A COMPANY'S EARNINGS GROWTH HIGHER THAN ITS EARNINGS MULTIPLE AN INDICATION THE STOCK MIGHT BE UNDERVALUED MY FRIENDS WONDER HOW I CAN LIKE A JOB WHERE I'M IN THE OFFICE AT 5 AM CHECKING COMPANY EARNINGS BUT I LOVE WHAT I'M DOING HE SAYS HOW CAN YOU NOT HAVE FUN WHEN YOU COME IN IN THE MORNING AND SEE THAT A STOCK YOU OWN REPORTED HIGHERTHANEXPECTED EARNINGS THE ANALYSTS ARE BUMPING UP THEIR ESTIMATES AND IT OPENS 4 HIGHER COMPAQ COMPUTER GAINED 1025 OR 11 TO 10775 LAST WEEK AFTER A PRUDENTIAL SECURITIES ANALYST UPGRADED THE STOCK TO BUY FROM HOLD ANALYST MARIANNE WOLK ALSO RAISED HER 1994 EARNINGS ESTIMATE TO 9 TO 950 A SHARE FROM 685 FOR THE FIRST QUARTER THE HOUSTON COMPUTER MAKER REPORTED NET OF 213 MILLION OR 239 A SHARE UP STRONGLY FROM 102 MILLION OR 123 A SHARE A YEAR EARLIER AMERICAN MEDICAL ELECTRONICS DALLAS LOST 32 TO 950 ON WEAKER EARNINGS FOR THE FIRST QUARTER AMERICAN MEDICAL POSTED NET INCOME OF 345000 OR FIVE CENTS A SHARE AFTER A CHARGE OF 655000 RELATED TO RESOLUTION OF AN EMPLOYMENT CONTRACT WITH FORMER CHIEF EXECUTIVE OFFICER JOSEPH MOOIBROEK WHO WILL RESIGN FROM THE COMPANY'S BOARD IN THE YEAREARLIER QUARTER THE COMPANY EARNED 12 MILLION OR 16 CENTS A SHARE INCLUDING A GAIN OF 375000 FROM AN ACCOUNTING CHANGE SEE RELATED LETTER TEXAS JOURNAL LETTERS TO THE EDITOR IT'S TOO LATE WSJ MAY 11 1994 9404270187 YY94 MM05 9405110001 940413 IN DEFENSE OF ARKANSAS BY BLANT HURT LITTLE ROCK ARK IN THE AGE OF WHITEWATER IT HAS BECOME FASHIONABLE TO BASH ARKANSAS THESE PAGES HAVE FLOGGED ARKANSAS MORES LJ DAVIS WRITING IN THE NEW REPUBLIC RECENTLY CHARACTERIZED ARKANSAS AS A THIRD WORLD COUNTRY WITH A RULING OLIGARCHY A SMALL AND RELATIVELY POWERLESS MIDDLE CLASS AND DISENFRANCHISED LEADERLESS POPULACE EVEN THE STOLID NEW YORK TIMES RECENTLY OPINED THE GENIUS OF THE FEDERAL SYSTEM DOES NOT RESIDE IN IMPORTING TO WASHINGTON THE FAULTS AND IDIOSYNCRACIES OF THE STATE CAPITALS THUS AMERICANS ARE LED TO BELIEVE THAT THE DOWNHOME ETHICS OF ARKANSAS ARE CULTURAL ODDITIES THAT NOW THREATEN MORE SOPHISTICATED ETHICAL NORMS PREVAILING IN PLACES LIKE WASHINGTON AND NEW YORK I WISH IT WERE SO BUT IT ISN'T THE SAME ETHICAL HABITS AND CUSTOMS THAT HAVE INFECTED ARKANSAS ARE VISIBLE FROM COAST TO COAST EVERYWHERE THE PROBLEM IS THE SAME AN INSIDIOUS BUSINESSGOVERNMENT PARTNERSHIP THAT DATES BACK TO FRANKLIN D ROOSEVELT'S ADMINISTRATION IT'S TRUE THAT ARKANSAS LIKE EVERY STATE HAS ITS CULTURAL AND POLITICAL QUIRKS NOTABLY A 158YEAR TRADITION OF ONEPARTY DOMINANCE MADE POSSIBLE IN PART BY THE ALMOST TOTAL IDEOLOGICAL BANKRUPTCY OF THE STATE'S REPUBLICAN PARTY IN THIS VACUUM THE DEMOCRATIC PARTY'S MACHINESTYLE POLITICS HAVE BEEN HONED TO ARROGANT EFFICIENCY ARKANSAS'S IMAGE AS AN ETHICAL BANANA REPUBLIC IS REINFORCED BY THE NEARCOMIC PROPORTIONS OF MRS CLINTON'S BULL MARKET SUCCESS YET ARKANSAS'S POLITICIANS AND THEIR WIVES ARE NOT THE FIRST TO FALL PREY TO THE SEDUCTIONS OF SELFSERVING DEALS WITH BUSINESS INTERESTS AND UNLESS THERE IS A RADICAL CHANGE OF PHILOSOPHY THROUGHOUT THE COUNTRY THEY SURELY WON'T BE THE LAST THIS ALL STARTED UNDER THE NEW DEAL WHICH AS AUTHOR JUSTIN RAIMONDO POINTS OUT TRANSFERRED HUGE AMOUNTS OF CAPITAL AND POWER FROM THE PRIVATE SECTOR TO THE GOVERNMENT VIA PAYROLL TAXES TAXES ON PROFITS AND CAPITAL GAINS AND GOVERNMENT CREATIONS SUCH AS THE RECONSTRUCTION FINANCE CORPORATION WHICH AT ONE TIME CONTROLLED HALF OF THE WORLD'S GOLD THIS WAS AN ENTIRELY NEW POWER AUTHOR AND WALL STREET JOURNAL REPORTER GARET GARRETT WROTE IN 1953 AS THE GOVERNMENT ACQUIRED IT SO PASSED TO THE GOVERNMENT THE ULTIMATE POWER OF INITIATIVE IT PASSED FROM PRIVATE CAPITALISM TO CAPITALISTIC GOVERNMENT THE GOVERNMENT BECAME THE GREAT CAPITALIST AND ENTERPRISER TODAY CAPITALISTIC GOVERNMENT IS AN INSTITUTIONALIZED PHENOMENON IN WASHINGTON AND IN EVERY STATE CAPITAL ALL LEVELS OF GOVERNMENT FIND SUBTLE WAYS TO PARTNER UP WITH BUSINESS INTERESTS SOCALLED ARKANSAS MORES ARE UBIQUITOUS WHITEWATER FASCINATES BECAUSE IT OFFERS US RATHER TRIFLING YET REVEALING EXAMPLES OF THE SLEAZE THAT INEVITABLY ARISES OUT OF THE BUSINESSGOVERNMENT PARTNERSHIP IN 1954 THE SMALL BUSINESS ADMINISTRATION WAS CREATED BY AN ENTERPRISEMINDED CONGRESS AND A GOP PRESIDENT SOME 30 YEARS LATER DAVID HALE A CLINTONAPPOINTED MUNICIPAL JUDGE IN LITTLE ROCK PROCURED 34 MILLION IN SBA FUNDS AIMED AT THE DISADVANTAGED ACCORDING TO THE GENERAL ACCOUNTING OFFICE MR HALE FUNNELED TAXPAYER MONEY TO 13 BUSINESSES HE SECRETLY CONTROLLED PORTIONS OF MR HALE'S SBA FUNDS ALSO FOUND THEIR WAY INTO THE BUSINESS VENTURES OF ARKANSAS GOV JIM GUY TUCKER AND POSSIBLY VIA A 300000 LOAN TO SUSAN MCDOUGAL'S MASTER MARKETING INTO THE CLINTONS' WHITEWATER DEVELOPMENT CO JAMES MCDOUGAL ALSO EXPLOITED GOVERNMENT PROGRAMS DESIGNED TO HELP BUSINESS IN THIS CASE BANKS WITHOUT FDR'S FEDERAL DEPOSIT INSURANCE MR MCDOUGAL'S MADISON GUARANTY NEVER COULD HAVE TAKEN TAXPAYERS FOR 47 MILLION NO ONE SHOULD BE SURPRISED THAT MR MCDOUGAL'S POLITICAL IDOL IS FDR OR THAT ONE OF MRS CLINTON'S INSPIRATIONS IS ELEANOR ROOSEVELT NOW MR MCDOUGAL IS EVEN RUNNING FOR CONGRESS IN ARKANSAS AS A NEW DEAL DEMOCRAT THE MCDOUGAL MINDSET EXPLOIT BUSINESSGOVERNMENT LINKS WHILE IGNORING THE ETHICAL IMPLICATIONS IS RAMPANT IN THE CLINTON ADMINISTRATION EVEN AMONG FOLKS WHO WEREN'T REARED ON GRITS AND GREENS LABOR SECRETARY ROBERT REICH A PROPHET OF MODERNDAY ROOSEVELTIAN ACTIVISM WROTE IN HIS 1983 BOOK THE NEXT AMERICAN FRONTIER FOR AMERICA'S NEXT STAGE OF ECONOMIC EVOLUTION THE GOVERNMENT'S ROLE IN INDUSTRY MUST BECOME NOT SO MUCH MORE EXTENSIVE AS MORE OPEN MORE EXPLICIT AND MORE STRATEGIC MR REICH'S STAR PUPIL THROUGHOUT THE 1980S OF COURSE WAS THENGOV BILL CLINTON ONE CAN ONLY HOPE THAT WHITEWATER AND ITS RELATED RASCALITY SPURS AMERICANS TO REFLECT ON THE ROOTS OF THE UNETHICAL IF NOT ILLEGAL BEHAVIOR THAT PERVADES THE INTERACTIONS BETWEEN OUR CAPITALISTIC GOVERNMENT AND BUSINESS INTERESTS THE ETHICAL STENCH HAS ALREADY UNDERMINED PUBLIC CONFIDENCE THE ONLY STRUCTURAL ANSWER IS TO RETHINK THE OLD ROOSEVELT PARADIGM EVEN AS IT SAGS UNDER ITS OWN SCANDALRIDDEN WEIGHT CRITICISMS OF THE CLINTONS FOR THEIR IDEAS AND ETHICS ARE PERFECTLY REASONABLE BUT FOR THE PRESS TO SMEAR AN ENTIRE STATE BECAUSE THE ETHICS OF ITS MOST NOTABLE POLITICAL FAMILY ARE THE SEEDY BYPRODUCT OF A SIXDECADEOLD AMERICAN TRADITION OF GOVERNMENTBUSINESS PARTNERSHIP IS SANCTIMONIOUS HOOEY UNFORTUNATELY THE REST OF AMERICA IS JUST AS TAINTED BY THE MORAL HAZARDS OF CAPITALISTIC GOVERNMENT AS WE ARE MR HURT IS A LITTLE ROCK BUSINESSMAN AND COLUMNIST FOR ARKANSAS BUSINESS SEE RELATED LETTER LETTERS TO THE EDITOR ARKANSAS CORRUPTION IS A SPECIAL BRAND WSJ MAY 11 1994 9404130066 YY94 MM05 9405100134 940425 LETTERS TO THE EDITOR FIRST OPEN YOUR MIND THEN OPEN YOUR MOUTH WHO ARE THE INTOLERANT CLOSEDMINDED MEANSPIRITED HATEMONGERS AS FAR AS I CAN TELL THEY ARE LIBERAL WOMEN AS A YOUNG CONSERVATIVE WOMAN I HAVE EXPERIENCED A NUMBER OF ACTS OF HATE IN THE PAST FEW MONTHS JUST BECAUSE I AM A CONSERVATIVE WOMAN I'VE BEEN VERBALLY ATTACKED AND GIVEN THE FINGER I THOUGHT ONE REDFACED WOMAN EYES AND VEINS BULGING SCREAMING AND YELLING WAS GOING TO JUMP THROUGH HER CAR WINDOW INTO MINE ALL OF THESE ACTIONS WERE UNPROVOKED AND IN RESPONSE TO MY OLLIE NORTH AND BUCHANAN '96 BUMPERSTICKERS AND TWO ANTICLINTON BUMPER STICKERS LIBERALS TALK ABOUT BEING OPENMINDED AND ACCEPTING BUT THAT IS ONLY IF YOU HAVE THEIR SAME VIEWS I DID NOT KNOW THAT THERE IS A CLAUSE AFTER THE FIRST AMENDMENT STATING THIS DOES NOT APPLY TO CONSERVATIVES I HAVE NEVER NOR HAS ANY CONSERVATIVE I KNOW VERBALLY ATTACKED OR GIVEN A HAND GESTURE TO DRIVERS WITH A CLINTONGORE OR A PROCHILD/PROCHOICE BUMPER STICKERS ON THEIR CARS WHEN I SEE THEIR OPINIONS THUS EXPRESSED I THINK QUIETLY TO MYSELF ANOTHER MISGUIDED SOUL ENTITLED TO HIS OR HER OWN OPINION LIBERALS WANT DIVERSITY AS LONG AS IT PERTAINS TO RACIAL QUOTAS AND SEXUAL PREFERENCE BUT IN THEIR UTOPIA THERE IS NO DIVERSITY OF IDEAS DIVERSITY ALL KINDS IS WHAT MAKES THIS COUNTRY GREAT ACTIONS SPEAK LOUDER THAN WORDS AND LIBERALS ARE ACTING OUT THEIR OWN STEREOTYPE OF CONSERVATIVES BY ATTACKING STRANGERS WHOSE BELIEFS DIFFER FROM THEIR OWN IF THEY WOULD JUST PRACTICE WHAT THEY PREACH ABOUT THEIR OWN PHILOSOPHY OF OPENMINDEDNESS THIS WORLD WOULD BE A BETTER PLACE SEE RELATED LETTER LETTERS TO THE EDITOR I HAVE INDIANA'S MOST INFURIATING CAR WSJ MAY 10 1994 9404250057 YY94 MM05 9405100113 940429 REVIEW & OUTLOOK EDITORIAL ASIDES ARCHERY IS CHEAPER IN NOTTINGHAM JOHN BUCKINGHAM SUED TWO MEMBERS OF THE SHERWOOD FOREST GOLF CLUB WHO HAD ACCUSED HIM OF AMONG OTHER THINGS KICKING HIS BALL TO A BETTER POSITION DURING A TOURNAMENT AFTER A 10DAY HEARING A JURY SEEMED UNCERTAIN ABOUT WHETHER MR BUCKINGHAM HAD IMPROVED HIS LIE BUT RULED THAT THE TWO MEN HAD NOT MALICIOUSLY DEFAMED HIM HE WILL HAVE TO PAY THEIR LEGAL FEES A WHOPPING 375000 IF LOSING PLAINTIFFS IN THE US FACED SUCH PENALTIES LAWYERS WOULD HAVE MORE TIME FOR GOLF SEE RELATED LETTER LETTERS TO THE EDITOR NO FRIVOLOUS SUITS IN ANCIENT ATHENS WSJ MAY 10 1994 9404290118 YY94 MM05 9405100110 940422 REVIEW & OUTLOOK EDITORIAL WHY THE HEALTH RUSH BILL AND HILLARY CLINTON HAVE SPENT THE WEEK BARNSTORMING THE COUNTRY FILLING AUDITORIUMS AND THE AIRWAVES WITH IMPASSIONED SPEECHES ON BEHALF OF ENACTING THEIR HEALTH REFORM PROPOSAL THIS YEAR SIMULTANEOUSLY TWO MAJOR OPINION POLLS OUT THIS WEEK SHOW A STARTLING DROP IN PUBLIC SUPPORT FOR THE CLINTONS' PLAN WHEN IS WASHINGTON GOING TO RECOGNIZE THE FLASHING POLITICAL SIGNAL SLOW DOWN ON HEALTH CARE NOW THE CLINTONS DESERVE SOME CREDIT FOR IGNITING A NATIONAL CONVERSATION ABOUT THE US HEALTH CARE SYSTEM WHAT'S BECOME CLEAR THOUGH IS THAT MOST VOTERS DON'T THINK THE DEBATE IS OVER AND DON'T WANT IT CUT OFF BY AN OBVIOUSLY CONFUSED CONGRESS RUSHING TO JUDGMENT AND A VOTE BY THE OCTOBER RECESS UNLESS WE ACTUALLY WANT TO VOTE A BOTCHED AND FLAWED SYSTEM INTO LAW THE CASE FOR SLOWING DOWN IS OVERWHELMING SENATE MAJORITY LEADER GEORGE MITCHELL ESSENTIALLY ACKNOWLEDGED LAST WEEKEND THAT CLINTONCARE IS ON POLITICAL LIFESUPPORT BY FLOATING THREE ALTERNATIVES THAT WOULD PRESERVE THE ORIGINAL'S COERCIVE ELEMENTS BUT PRESUMABLY COST LESS MEANWHILE OVER IN JOHN DINGELL'S HOUSE COMMITTEE HEADED FOR A VOTE NEXT WEEK CHAIRMAN JOHN HIMSELF THREW THE CLINTONS' DRUG REVIEW BOARD OVER THE SIDE WEDNESDAY I DO NOT DESIRE TO SINGLE OUT NEW OR BREAKTHROUGH' DRUGS FOR DRACONIAN PRICE REGULATION SAID CONGRESS'S MOST INSTINCTIVELY DRACONIAN REGULATOR ALSO DITCHED WAS THE PLAN TO LET THE GOVERNMENT BLACKLIST FROM MEDICARE DRUGS DEEMED TOO EXPENSIVE LET'S LOOK AT SOME OF THIS WEEK'S POLLING NUMBERS THE USA TODAY/GALLUP/CNN POLL FOUND THE CLINTON PLAN GETS ITS WORST RATINGS YET WITH ONLY 43 IN FAVOR AND 47 OPPOSED LAST OCTOBER HIS PLAN WAS BACKED 59 TO 33 BETWEEN A HEALTH CARE PLAN GUARANTEEING PERMANENT COVERAGE THE CLINTON PLAN AND ONE THAT ONLY OFFERS ACCESS TO AFFORDABLE COVERAGE 63 SUPPORTED THE MORE MODEST APPROACH AND 34 BACKED PERMANENT COVERAGE AND ASKED IF CHANGES SHOULD COME GRADUALLY OVER SEVERAL YEARS OR PASS THIS YEAR THE PUBLIC OPTS FOR THE GOSLOW APPROACH BY 59 TO 37 THE LOS ANGELES TIMES POLL WHILE REPORTING A PLURALITY SUPPORTING THE CLINTON PLAN FOUND THAT 68 WOULDN'T BE UPSET IF THE PLAN DIDN'T PASS THIS YEAR FOR ALL THIS MR CLINTON STILL VOWS TO VETO ANY BILL THAT DOESN'T MANDATE HEALTH CARE FOR EVERY AMERICAN EVEN AS HIS OWN PARTY'S LEADING FIGURES DISMANTLE HIS PLAN AND CONTRIVE RUBE GOLDBERG REFORMS OF THEIR OWN THERE IS A SIMPLE EXPLANATION FOR THIS WASHINGTON DISCONNECT POLITICS THE DEMOCRATS ARE WORRIED THEY MAY LOSE ENOUGH HOUSE AND SENATE SEATS IN NOVEMBER THAT IT WILL BE IMPOSSIBLE FOR THEM TO PASS ANY VERSION OF CLINTONCARE NEXT YEAR THUS THE SCRAMBLE TO RAM HEALTH CARE REFORM THROUGH THIS YEAR EVEN IF IT DOES FAINTLY RESEMBLE DR FRANKENSTEIN'S FRIEND WE UNDERSTAND ALL THAT BUT THE AMERICAN PEOPLE LATELY HAVE FOUND WAYS TO METE OUT PUNISHMENT FOR LEGISLATIVE FIASCOS THE LAST TIME CONGRESS RUSHED THROUGH A MAJOR HEALTH BILL IN AN ELECTION YEAR CATASTROPHIC HEALTH INSURANCE IT PROVED SO UNPOPULAR THAT CONGRESS HAD TO REPEAL IT THE FACT IS THAT AMERICANS HAVE LEARNED A LOT ABOUT HEALTH CARE SINCE PRESIDENT CLINTON'S PLAN CAME OUT AND AFTER A NONSTOP SEVENMONTH WHITE HOUSE PR BLITZ THE AMERICAN PUBLIC ISN'T CONVINCED UNIVERSAL COVERAGE IS WORTH LIMITS ON CHOICE OR AN EMPLOYER MANDATE PLEASE NO WHINING THAT THE HARRY AND LOUISE ADS SINGLEHANDEDLY CRUSHED THE FLOWER OF REFORM THERE MAY WELL BE SUPPORT FOR INCREMENTAL REFORMS ON PORTABILITY AND THE LIKE BUT THE PUBLIC IS CLEARLY SEEKING A GREATER COMFORT LEVEL WITH OVERHAULING 14 OF GDP OF COURSE WE DON'T WANT THE WHITE HOUSE SPINNERS DENOUNCING US WITH THE HORRIBLE OWORD FAR BE IT FROM US TO FOMENT OBSTRUCTION STILL THERE OUGHT TO BE MORE PUBLIC CONSENSUS THAN IS NOW EVIDENT ON THE CORE PHILOSOPHY GUIDING ANY CHANGE IN THE HEALTH SYSTEM BUT IS THERE A BETTER WAY TO DIVINE THE PUBLIC'S DESIRE THAN LAST WEEK'S GREENBERG POLL THERE IS LET'S PUT THE HEALTH CARE ISSUE AT THE CENTER OF THIS FALL'S CONGRESSIONAL ELECTIONS LET CANDIDATES GO ON RECORD FOR OR AGAINST EMPLOYER MANDATES UNIVERSAL COVERAGE OVERSIGHT BY GOVERNMENT BOARDS AND CONTROLS ON PRICES LET THE CANDIDATES DEBATE THEIR POSITIONS IN FRONT OF HOMETOWN AUDIENCES AND THEN LET THE VOTERS REGISTER THEIR PREFERENCES IN AN ACTUAL ELECTION INDEED THERE IS A PRECEDENT FOR THIS APPROACH IN 1991 MASTER CAMPAIGN STRATEGIST JAMES CARVILLE GOT DEMOCRAT HARRIS WOFFORD ELECTED IN A SPECIAL SENATE ELECTION IN PENNSYLVANIA BY RUNNING ON HEALTH CARE REFORM WE THINK THE CARVILLE APPROACH IS MUCH MORE LIKELY TO PRODUCE A PUBLICLY SUPPORTABLE HEALTH CARE OUTCOME THAN THE MADDOCTOR OPERATIONS NOW UNDERWAY IN CONGRESS SEE RELATED LETTER LETTERS TO THE EDITOR WHY RUSH TO REFORM JUST ASK THE EXPERTS WSJ MAY 10 1994 9404220094 YY94 MM05 9405100107 940404 ENVIRONMENT CHLORINEFREE PAPER IS CLEAN BUT UNPOPULAR BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL LOUISIANAPACIFIC CORP FIGURED INDUSTRIAL CUSTOMERS WOULD BE AS ENTHUSIASTIC AS ENVIRONMENTALISTS WERE WHEN IT STOPPED USING CHLORINE AT ITS SPRAWLING PULP MILL IN SAMOA CALIF IT FIGURED WRONG LOOKING FOR WAYS TO CLEAN UP ITS WASTE WATER THE COMPANY ELIMINATED CHLORINE WHICH MAKES PAPER SNOWY WHITE FROM ITS BLEACHING PROCESS THAT MEANT THAT CHLORINE'S BYPRODUCTS WHICH INCLUDE DIOXINS THAT ACCUMULATE IN FISH AND OTHER CREATURES WOULD NO LONGER BE DUMPED INTO THE OCEAN BUT THERE ARE FEW BUYERS FOR THE LESS TOXIC PULP LOUISIANAPACIFIC BASED IN PORTLAND ORE SAYS IT IS SELLING ITS TOTALLY CHLORINE FREE OR TCF PULP AT A DEEP LOSS AND RECENTLY HALTED PRODUCTION AT THE SAMOA MILL TO WORK OFF MOUNTAINS OF INVENTORY THE TRAVAILS OF THE SAMOA PLANT UNDERSCORE THE DILEMMA PULP AND PAPER COMPANIES FACE IN THE WAR OVER CHLORINE BECAUSE OF ITS HIGHLY TOXIC BYPRODUCTS ENVIRONMENTAL GROUPS ARE LOBBYING TO BAN CHLORINE FROM PAPER MILLS AND OTHER INDUSTRIAL PROCESSES AS PART OF THE CLEAN WATER ACT WHICH COMES UP FOR RENEWAL BEFORE CONGRESS THIS YEAR THE CLINTON ADMINISTRATION HAS PROPOSED A STUDY TO SEE IF THE USE OF CHLORINE SHOULD BE LIMITED OR BANNED MOST US PAPERMAKERS STILL USE SOME KIND OF CHLORINE TREATMENT TO WHITEN THEIR PAPER THEY INSIST THERE'S NO MARKET FOR THE BROWNISH TCF PAPER ALTHOUGH NONE HAS DONE DETAILED MARKET STUDIES THEY SAY CONSUMERS EXPECT BRIGHT WHITE PAPER WHEN THEY FLIP THROUGH A MAGAZINE OR OPEN AN ENVELOPE IN ADDITION MAKING TCF REQUIRES COSTLY INVESTMENTS IN NEW TECHNOLOGY A STUDY BY INTERNATIONAL PAPER CO ESTIMATES THE INDUSTRY WOULD HAVE TO SPEND 96 BILLION IN CAPITAL INVESTMENTS TO GO CHLORINEFREE AS TECHNOLOGY IMPROVES HOWEVER TCF PAPER SHOULD START LOOKING MORE LIKE THE COMPETITION AND ITS PRICE WILL EVENTUALLY COME DOWN AND WHEN THIS HAPPENS MORE PEOPLE WILL BE LIKELY TO BUY IT THIS MARKET IS EVOLVING RIGHT NOW SAYS PETER SWEENEY A MARKETING OFFICIAL AT CROSS POINTE PAPER A UNIT OF PENTAIR CORP IN ST PAUL MINN WHICH IS DEVELOPING TCF PAPER PRODUCTS CROSS POINTE STARTED OUT MAKING PURE TCF PAPER BUT THEN REALIZED THAT MORE BUYERS WANTED PRODUCTS THAT INCLUDE RECYCLED MATERIAL WITHIN THE NEXT TWO MONTHS MR SWEENEY SAYS THE COMPANY WILL UNVEIL A LINE OF PAPER THAT MIXES TCF WITH RECYCLED PAPER IT IS AS WHITE AS PAPER MADE WITH CHLORINE AND IS PRICED WITHIN 5 OF TRADITIONAL OPAQUE STOCK MR SWEENEY SAYS THE COMPANY DOESN'T ADVERTISE ITS PAPER BUT GETS CALLS FROM ENVIRONMENTAL GROUPS AND COMPANIES THAT HAVE HEARD ABOUT IT AND WANT TO BUY IT THERE'S A MARKET NEED HE SAYS AND WE HAVE TO IDENTIFY HOW LARGE THAT IS ENVIRONMENTALISTS HOPE THAT SOMEDAY MOST PAPER WILL BE BOTH RECYCLED AND 100 TCF THE FEW COMPANIES THAT BUY TCF PAPER USE IT PRIMARILY FOR ANNUAL REPORTS OR ENVIRONMENTAL BROCHURES TO SHOW THEIR PROGREEN SENTIMENTS WE PAY MORE FOR IT BUT WE DECIDED IT'S IMPORTANT TO A PORTION OF OUR READERS SAYS ROBERT GARTH COPUBLISHER OF SCUBA TIMES MAGAZINE A BIMONTHLY FOR SCUBA ENTHUSIAISTS THAT PUBLISHES PART OF EACH ISSUE ON TCF PAPER MR GARTH FIGURES HE PAYS ABOUT 20 MORE FOR THE PAPER TIME MAGAZINE'S EDITORIAL STAFF PRESSURED BY THE ENVIRONMENTAL ACTIVIST GROUP GREENPEACE SAID THEY WOULD EXPLORE USING PAPER BLEACHED WITHOUT CHLORINE BUT THE TIME INC MAGAZINE GROUP REFUSED NOTING THAT GOING TO CHLORINEFREE PAPER ISN'T A CORPORATE POLICY LAST WEEK HOWEVER TIME INC ANNOUNCED THAT ALL OF ITS MAGAZINES WOULD BE PRINTED ON RECYCLED PAPER WHICH CAN BE VIRTUALLY INDISTINGUISHABLE FROM NEW PAPER BY 1996 LOUISIANAPACIFIC SWITCHED TO TCF ONLY AFTER BEING SUED IN US DISTRICT COURT BY A GROUP OF ACTIVIST SURFERS AND THE ENVIRONMENTAL PROTECTION AGENCY FOR DUMPING WASTE WATER INTO THE OCEAN THE COMPANY COULD HAVE BUILT A SECONDARYWASTE TREATMENT SYSTEM WE DECIDED IT WAS CHEAPER TO ELIMINATE THE SOURCE OF THE PROBLEM THAN TO BUILD THE SECONDARY TREATMENT SAYS BARRY LACTER A COMPANY SPOKESMAN THE PAPERMAKERS' MAIN ARGUMENT AGAINST TCF IS THAT THERE IS A CHEAPER ALTERNATIVE MOST US MILLS HAVE SWITCHED FROM USING PURE CHLORINE THE CHEMICAL ELEMENT TO A MIX OF CHLORINE AND CHLORINE DIOXIDE A CHEMICAL COMPOUND MADE OF CHLORINE AND OXYGEN CHLORINE DIOXIDE REACTS DIFFERENTLY WITH PULP GENERATING FEWER DIOXINS MILLS THAT SHIFT TO 100 CHLORINE DIOXIDE ARE EVEN CARVING A NICHE FOR THEMSELVES AMONG ENVIRONMENTALLY AWARE CONSUMERS BY LABELING PRODUCTS ELEMENTAL CHLORINE FREE OR ECF WE BELIEVE DIOXIN IS NO LONGER AN ISSUE IN THE PULPBLEACHING PROCESS SAYS RICHARD PHILLIPS VICE PRESIDENT OF TECHNOLOGY AT INTERNATIONAL PAPER CO THE US'S LARGEST PAPER MAKER INCREASING THE AMOUNT OF CHLORINE DIOXIDE CAN ALLOW MOST MILLS TO CUT DIOXIN EMISSIONS TO NONDETECTABLE LEVELS HE SAYS ADDING THAT INTERNATIONAL PAPER ACHIEVED THAT IN 1992 WHILE DIOXIN IS WIDELY BELIEVED TO BE CARCINOGENIC IT IS STILL UNCLEAR WHAT LEVEL OF EXPOSURE TO IT IS DANGEROUS TO HUMANS ENVIRONMENTALISTS SAY EVEN SMALL AMOUNTS OF DIOXIN ARE UNACCEPTABLE IT'S THE DIFFERENCE BETWEEN CHLORINE AND CHLORINELITE SAYS MARK FLOEGEL HEAD OF GREENPEACE'S INTERNATIONAL CHLORINE CAMPAIGN IT'S TWOTHIRDS LESS POLLUTING BUT IT'S STILL STABLE IN THE ENVIRONMENT SO WE'RE JUST SLOWING THE RATE OF ACCUMULATION ANOTHER INDUSTRY ARGUMENT IS THAT EVEN GREEN CONSUMERS ARE MORE EAGER FOR RECYCLED PAPER THAN TCF STILL PRESSURE TO PRODUCE CHLORINEFREE PAPER IS LIKELY TO GROW IN ADDITION TO THE CLINTON ADMINISTRATION'S PROPOSED CHLORINE STUDY THE EPA IS REEXAMINING ITS RISK ASSESSMENT FOR DIOXIN WHICH COULD ALSO HAVE AN EFFECT ON CHLORINE USE IN THE US SOME COMPANIES ARE COMBINING TECHNOLOGIES CREATING HYBRID MILLS THAT CUT DIOXIN TO A MINIMUM FOR EXAMPLE STAMFORD CONNBASED CHAMPION INTERNATIONAL GROUP USES OXYGEN RATHER THAN CHLORINE IN THE INITIAL BLEACHING STAGE IN ALL ITS MILLS WASTE WATER FROM THIS STAGE IS LESS TOXIC AND THUS EASIER TO RECYCLE CHLORINE DIOXIDE IS INTRODUCED ONLY IN LATER STAGES OF PROCESSING MEANWHILE BACK IN SAMOA LOUISIANAPACIFIC IS FACING TOUGH CHOICES WITH LITTLE DOMESTIC DEMAND FOR ITS PULP THE COMPANY IS EYEING OTHER WAYS TO MAKE THE BUSINESS PROFITABLE ONE OPTION WOULD BE TO SHIFT FROM MAKING SOCALLED KRAFT PULP USED FOR PAPER TO PRODUCING FLUFF FOR USE IN PRODUCTS LIKE DISPOSABLE DIAPERS THE COMPANY MAY ALSO JOIN FORCES WITH A PAPER MAKER TO PRODUCE ITS OWN TCF PAPER PRODUCTS SEE RELATED LETTER LETTERS TO THE EDITOR STUDIES THROW DOUBT ON CHLORINE TOXICITY WSJ MAY 10 1994 9404040021 YY94 MM05 9405100071 940406 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN SOME PROCRASTINATORS MIGHT MISS AN ATTRACTIVE OFFER IF THEY DON'T ACT SOON PEOPLE FACED WITH A BIGGER 1993 TAX BILL BECAUSE OF THE RETROACTIVE RATE INCREASES IN THE NEW TAX LAW MAY DEFER PAYING PART OF THE ADDITIONAL MONEY THEY OWE OVER THE NEXT TWO YEARS FOR INSTANCE SOMEONE WHO OWES 12000 MORE BECAUSE OF THE HIGHER RATES COULD PAY 4000 BY APRIL 15 4000 BY APRIL 1995 AND 4000 BY APRIL 1996 TO QUALIFY FOR THIS SPECIAL OFFER YOU MUST HAVE PAID AT LEAST 90 OF YOUR ACTUAL 1993 TAX MINUS TWOTHIRDS OF THE TAX ADDED BY THE NEW LAW'S HIGHER RATES BY APRIL 15 OF THIS YEAR THUS SAYS ROBERT J GARNER OF ERNST & YOUNG UPPERINCOME TAXPAYERS WHO FILE FOR AN AUTOMATIC FOURMONTH EXTENSION BY APRIL 15 SHOULD MAKE A SPECIAL EFFORT TO ESTIMATE THEIR TAX BILL AS ACCURATELY AS POSSIBLE BEFORE THEN THEY SHOULD ALSO BE SURE TO PAY AT LEAST THE MINIMUM AMOUNT REQUIRED BY THAT DATE HE SAYS SEE NEW IRS FORM 8841 FOR DETAILS ON CALCULATING HOW MUCH MAY BE DEFERRED NEW TAX RULES COULD TRIM RETURNS FOR SOME UNSUSPECTING BOND INVESTORS WITH BOND PRICES IN A TAILSPIN LATELY MANY ISSUES NOW ARE TRADING WAY BELOW FACE VALUE TAXFREE BOND PRICES HAVE FALLEN ESPECIALLY SHARPLY WHICH MAY TEMPT SOME BARGAINHUNTERS TO START BUYING ONCE AGAIN BUT BEFORE YOU LEAP REMEMBER THAT THE 1993 TAX LAW CHANGES THE WAY PROFITS ARE TAXED ON MUNICIPAL BONDS PURCHASED IN THE RESALE MARKETS AT A DISCOUNT FROM FACE VALUE BECAUSE OF THE NEW LAW PART OR ALL OF ANY PROFIT ON MARKETDISCOUNT BONDS BOUGHT AFTER APRIL 30 LAST YEAR MAY BE TAXED AS ORDINARY INCOME NOT SOLELY AS A CAPITAL GAIN ROBERT WILLENS AT LEHMAN BROTHERS OFFERS THIS EXAMPLE SUPPOSE YOU PAY 90 CENTS ON THE DOLLAR TO BUY A MUNICIPAL BOND WITH 10 YEARS LEFT UNTIL IT MATURES YOU SELL THE BOND IN MAY 1995 AT 92 A GAIN OF 20 FOR EACH 1000 FACE AMOUNT HALF YOUR GAIN WOULD BE ORDINARY INCOME HALF A LONGTERM CAPITAL GAIN HE SAYS MANY PEOPLE PROBABLY DON'T REALIZE THIS NEW RULE WILL LOWER THEIR AFTERTAX RETURNS MR WILLENS WARNS INSTANT REPLAY AN APPEALS COURT WILL REVIEW ITS OWN DECISION ON DEFERRED PAY IN AN UNUSUAL MOVE THE US APPEALS COURT FOR THE NINTH CIRCUIT HAS AGREED TO RECONSIDER ITS CONTROVERSIAL RULING LATE LAST YEAR IN A CASE INVOLVING ALBERTSON'S A BOISE IDAHO FOOD AND DRUGSTORE CHAIN IN DECEMBER A THREEJUDGE PANEL ALLOWED ALBERTSON'S TO DEDUCT INTEREST CURRENTLY THAT IT HAD AGREED TO GIVE SOME EXECUTIVES AND A DIRECTOR ON THEIR DEFERRED PAY EVEN THOUGH THE COMPANY WON'T ACTUALLY PAY FOR YEARS THE CASE IS SLATED TO BE REARGUED JUNE 15 IN SAN FRANCISCO BEFORE THE SAME PANEL TREASURY OFFICIALS AND MANY TAX LAWYERS WERE STUNNED BY THE DECEMBER RULING SEN PRYOR AN ARKANSAS DEMOCRAT HAS INTRODUCED A BILL TO OVERTURN THE DECISION WHICH HE SAYS POTENTIALLY COULD COST THE TREASURY BILLIONS OF DOLLARS FOR A PREFERENTIAL TAX REGIME THAT WAS NEVER INTENDED BY CONGRESS THE IRS THIS WEEK REITERATED ITS OPPOSITION TO ALBERTSON'S STANCE THIS IS AN ENORMOUSLY IMPORTANT CASE SAYS MARY B HEVENER A LAWYER AT MCDERMOTT WILL & EMERY IN WASHINGTON EVERYONE IS WATCHING IT GUCCI GULCH MOVES TO 1111 CONSTITUTION AVE HOME OF THE IRS FOR A HEARING THIS MORNING AT 10 ON PROPOSED REGULATIONS ON ALLOCATING COSTS TO LOBBYING ACTIVITIES REPRESENTATIVES OF 19 ORGANIZATIONS COMPANIES AND FIRMS ARE SCHEDULED TO SPEAK BOYCOTTERS IRS RECORDS SHOW 1150 CORPORATIONS 50 PARTNERSHIPS AND FIVE INDIVIDUALS REPORTED PARTICIPATING DURING 1991 IN UNSANCTIONED INTERNATIONAL BOYCOTTS SUCH AS THOSE AGAINST ISRAEL NONE OF THE TAXPAYERS WERE IDENTIFIED MANY COMPANIES ARE CHALLENGING STATE AND LOCAL PROPERTYTAX ASSESSMENTS AND WINNING ACCORDING TO A SURVEY BY COOPERS & LYBRAND MORE THAN 75 OF THE 375 COMPANIES SURVEYED CHALLENGED THEIR ASSESSMENTS AND ALMOST 90 VIEWED THEIR CHALLENGE AS SUCCESSFUL SAYS DENNIS NEILSON OF COOPERS MORE TAXPAYERS TAKE ADVANTAGE OF AN IRS OFFER TO FILE TAX RETURNS BY PHONE THE IRS IS ALLOWING TAXPAYERS IN SEVEN STATES TO FILE BY PHONE THIS YEAR AS OF MARCH 25 THE IRS HAD RECEIVED 470000 RETURNS BY TELEFILE THAT IS 85 OF THE 550000 IT PROJECTED IT WILL RECEIVE THIS YEAR LAST YEAR THE PROGRAM WAS AVAILABLE ONLY IN OHIO THIS YEAR IT ALSO IS OFFERED IN FLORIDA KENTUCKY INDIANA MICHIGAN SOUTH CAROLINA AND WEST VIRGINIA THE PROGRAM IS AVAILABLE ONLY TO SINGLE TAXPAYERS WITH NO DEPENDENTS WHO WOULD OTHERWISE USE FORM 1040EZ WHICH MEANS INCOME UNDER 50000 ALSO THE OFFER APPLIES ONLY TO PEOPLE WHO RECEIVED A SPECIAL TAX PACKAGE IN JANUARY CALLERS USE A TOUCHTONE PHONE TO ENTER INCOME AND WITHHOLDING FIGURES THE IRS FIGURES THE TAX AND ANY REFUND OR TAX OWED WHILE THE CALLER IS ON THE LINE MOST TAXPAYERS THEN MAIL A SPECIAL RETURN WITH W2 FORMS ATTACHED BUT IN SOUTHERN OHIO THE IRS IS TESTING A PAPERFREE RETURN WITH TAXPAYERS USING A VOICE SIGNATURE BRIEFS TAX CUT FEVER HONG KONG OFFICIALS PROPOSE TAX CUTS THAT WOULD MEAN 58 OF THE WORK FORCE OF 28 MILLION PEOPLE WOULDN'T OWE ANY TAXES ON SALARY UP SHARPLY FROM 43 NOW HUMOR COLUMNIST DAVE BARRY SUGGESTS THIS MOTTO FOR THE IRS WE'LL ANSWER THE TAXPAYER ASSISTANCE HOTLINE WHEN YOU PRY THE COFFEE CUP FROM OUR COLD DEAD FINGERS EVER WONDER WHY THE IRS CALLS IT FORM 1040 COMEDIAN JAY LENO EXPLAINS FOR EVERY 50 YOU EARN YOU GET 10 AND THEY GET 40 THE INTERNAL REVENUE SERVICE SAYS 61 COMPANIES PARTNERSHIPS AND INDIVIDUALS REPORTED IN 1991 THEY AGREED TO PARTICIPATE IN AN UNSANCTIONED INTERNATIONAL BOYCOTT THE APRIL 6 TAX REPORT BASED ON AN IRS REPORT AND AN INTERVIEW WITH AN IRS SPOKESMAN CITED 1205 PARTICIPANTS THE IRS SPOKESMAN SAID YESTERDAY A TABLE IN THE IRS REPORT HAS A MISLEADING TITLE 9405100056 940429 LEGAL BEAT THREATS OF RETALIATION DISSUADE MORE WITNESSES FROM TESTIFYING BY WADE LAMBERT AND JUNDA WOO STAFF REPORTERS OF THE WALL STREET JOURNAL ARLIN BUDOO WAS RECENTLY SENTENCED TO JAIL IN CONNECTION WITH A WASHINGTON MURDER CASE MR BUDOO WASN'T THE DEFENDANT HE WAS A WITNESS WHO HAD DECIDED NOT TO TESTIFY PROSECUTORS ACROSS THE COUNTRY SAY MORE WITNESSES ARE BALKING AT TESTIFYING IN VIOLENT CRIME CASES LIKE MR BUDOO WHO WAS SENTENCED TO 20 TO 60 MONTHS FOR CONTEMPT OF COURT MANY OF THE WITNESSES INITIALLY COOPERATE WITH POLICE AND GRANDJURY INVESTIGATIONS BUT THEN TRY TO RECANT WHEN THEY FACE A PUBLIC TRIAL AND THE RISK OF REPRISALS THE UNUSUAL JAILING OF THE 21YEAROLD MR BUDOO WHO TOLD THE JUDGE HE FEARED FOR HIS LIFE IF HE TESTIFIED AGAINST AN ALLEGED GANG MEMBER REFLECTS THE GROWING FRUSTRATION OF JUDGES AND LAWENFORCEMENT AGENCIES IN WASHINGTON DC A CITY PLAGUED BY WITNESS INTIMIDATION THE US ATTORNEY IS SEEKING TO TOUGHEN THE PENALTIES FOR THREATENING A WITNESS AND TO MAKE IT EASIER TO USE A WITNESS'S PRETRIAL TESTIMONY AS EVIDENCE ALTHOUGH PROSECUTORS DON'T DISMISS THE RISKS WITNESSES TAKE THEY ARGUE THAT THE JUSTICE SYSTEM CAN'T AFFORD TO LET INTIMIDATION SUCCEED EVERYBODY HAS A DUTY TO COME FORWARD AND TESTIFY SAYS MICHAEL GENELING A LOS ANGELES DEPUTY DISTRICT ATTORNEY WHO OVERSEES GANG PROSECUTIONS WE HAVE TO ASK PEOPLE TO TAKE THAT RISK THAT RISK CAN BE SUBSTANTIAL IN JANUARY A FORT WORTH TEXAS TEENAGER WAS SHOT TO DEATH TWO MONTHS AFTER HE TESTIFIED AGAINST A MAN ACCUSED IN A GANGRELATED MURDER CASE THE KILLING CAME JUST DAYS BEFORE JURY SELECTION IN A SECOND DEFENDANT'S TRIAL ALTHOUGH THE WITNESS'S MURDER REMAINS UNSOLVED PROSECUTORS HAVE SAID THEY BELIEVE IT WAS AN ACT OF REVENGE THE WITNESS WAS EXPECTED TO BE CALLED IN THE SECOND CASE WHEN A WITNESS GETS HURT THE EFFECT ON FUTURE WITNESSES IS INCALCULABLE SAYS DANIEL RICHMAN A FORMER FEDERAL PROSECUTOR IN NEW YORK WHO IS NOW A PROFESSOR AT FORDHAM LAW SCHOOL IT HAS AN AMAZING CHILLING EFFECT DAVID SCHERTLER CHIEF OF THE HOMICIDE UNIT IN THE US ATTORNEY'S OFFICE IN WASHINGTON DC SAYS HIS OFFICE HAD OFFERED TO PROTECT MR BUDOO WHO HAD BEEN AN ACQUAINTANCE OF THE MURDER DEFENDANT BUT MR BUDOO'S LAWYER ANTOINI M JONES OF THE LAW FIRM OF MUNDY HOLT & MANCE SAID HIS CLIENT WAS AFRAID THE GOVERNMENT WOULDN'T BE ABLE TO PROTECT HIM AND HIS FAMILY WHO DO YOU HOLD THE HIGHER REGARD FOR YOUR GOVERNMENT OR YOURSELF AND YOUR FAMILY SAYS MR JONES THE JAILING OF MR BUDOO WON'T GET THE REACTION PROSECUTORS WERE EXPECTING HE ADDS IT WILL DISCOURAGE PEOPLE FROM COMING FORWARD AND TALKING TO PROSECUTORS IN THE FIRST PLACE LAWENFORCEMENT AGENCIES HAVE RECENTLY BEGUN TO GATHER DATA ON HOW MANY CASES INVOLVE THREATS SAYS DONALD REBOVICH DIRECTOR OF RESEARCH FOR THE NATIONAL DISTRICT ATTORNEYS ASSOCIATION A US BUREAU OF JUSTICE STATISTICS SURVEY FOUND THAT IN THE YEAR ENDED JUNE 30 1992 MORE THAN A THIRD OF 262 DISTRICT ATTORNEYS' OFFICES SAID CASES HAD BEEN DECLINED DIVERTED OR DEFERRED BECAUSE OF WITNESS RELUCTANCE THE GROWING CONCERN ABOUT WITNESS INTIMIDATION COMES AS MORE PROSECUTORS AND JUDGES ALSO WORRY ABOUT THEIR SAFETY IN NOVEMBER A NEW YORK MAN WAS CONVICTED OF TAKING OUT A 25000 CONTRACT ON AN ASSISTANT DISTRICT ATTORNEY WHO PROSECUTED HIS MURDER CASE THE CRIMINAL ALLEGEDLY FELT THE PROSECUTOR SHOWED HIM DISRESPECT BY RAISING HIS EYEBROWS TWICE DURING A COURT HEARING IN THE YEAR ENDED JUNE 30 1992 MORE THAN A QUARTER OF LOCAL PROSECUTORS' OFFICES EXPERIENCED A THREAT OR ASSAULT ACCORDING TO THE BUREAU OF JUSTICE STATISTICS SURVEY AND ALMOST HALF OF THE LARGEST OFFICES HAD AT LEAST ONE LAWYER WHO WAS ARMED I PERSONALLY HAVE A FIREARM AT HOME AND CARRY ONE IN THE CAR SAYS JEFFREY MODISETT MARION COUNTY IND PROSECUTOR IN INDIANAPOLIS I CURRENTLY HAVE A PROTECTIVE ORDER AGAINST AN INDIVIDUAL WHICH SAYS HE HAS TO STAY 100 FEET AWAY FROM ME AT ALL TIMES SUCH PROTECTION ISN'T AS LIKELY OR PRACTICAL FOR MOST WITNESSES ESPECIALLY IN URBAN AREAS OFTEN A WITNESS IS A NEIGHBOR OR EVEN AN ALLEGED CRIMINAL ASSOCIATE OF THE DEFENDANT GETTING SUCH WITNESSES TO COME FORWARD IS THE TOUGHEST CHALLENGE BECAUSE THEY HAVE TO GO HOME TO THE SAME COMMUNITY AS THE DEFENDANT IN SOME NEIGHBORHOODS IT HAS BECOME A DAILY EXPERIENCE TO HAVE VIOLENT CRIME HAPPEN AROUND YOU SAYS MR REBOVICH THE RESEARCHER YOU START TO FEEL THAT NOTHING WILL BE DONE SO WHY SHOULD I COME FORWARD AND STICK OUT MY NECK PROSECUTORS SAY WITNESS INTIMIDATION RANGES FROM FACETOFACE THREATS ON THE STREET TO GESTURES MADE IN COURT EVEN WHEN FEARFUL WITNESSES DO TAKE THE STAND THEY AREN'T AS EXPANSIVE IN TESTIMONY AS THEY MIGHT BE SAYS ERIE COUNTY DISTRICT ATTORNEY KEITH M DILLON IN BUFFALO NY MANY STATES ALREADY ALLOW PROSECUTORS TO INTRODUCE AS EVIDENCE A WITNESS'S PRETRIAL SWORN STATEMENTS IF THE TESTIMONY CHANGES BY THE TIME OF THE TRIAL MR DILLON SAYS JURORS OFTEN HAVE A TOUGH TIME TRYING TO DECIDE WHICH OF THE CONTRADICTORY STATEMENTS IS TRUE TO DISCOURAGE WITNESS INTIMIDATION IN COURT LOS ANGELES PROSECUTORS VIDEOTAPE THE SPECTATORS AT CERTAIN TRIALS HOPING CAMERASHY GANG MEMBERS WILL BE DETERRED FROM ATTENDING LOS ANGELES ALSO HAS ITS OWN WITNESSPROTECTION AND RELOCATION PROGRAM BEING SECRETLY MOVED TO A NEW NEIGHBORHOOD HOWEVER ISN'T PRACTICAL OR ACCEPTABLE TO MANY WITNESSES AND MOST PROSECUTORS' OFFICES SAY THEY CAN'T AFFORD TO OFFER SUCH SERVICES SOME PROSECUTORS SAY THE PUBLIC'S RISING FEAR OF CRIME RATHER THAN ANY REAL INCREASE IN RISK ACCOUNTS FOR WITNESSES' RELUCTANCE TO TESTIFY FOR THE AVERAGE VICTIM OR WITNESS THE BIGGER PROBLEM IS FEAR OF THE UNKNOWN SAYS MARY FASANO DIRECTOR OF THE VICTIMWITNESS ASSISTANCE PROGRAM OF THE COOK COUNTY STATE'S ATTORNEY'S OFFICE IN CHICAGO HER OFFICE ENCOURAGES WITNESSES TO COOPERATE BY INFORMING THEM ABOUT COURT PROCEDURES AND PROVIDING OTHER SUPPORT RATHER THAN DECLINE TO TESTIFY MS FASANO SAYS MOST VICTIMS AND WITNESSES REALLY WANT TO SEE DEFENDANTS PUNISHED WITNESSES CAN'T BE SUED FOR STATEMENTS THEY MAKE IN CONNECTION WITH ARBITRATION PROCEEDINGS CALIFORNIA'S HIGH COURT RULED THE 51 RULING GIVES ARBITRATION WITNESSES THE SAME PROTECTION AS WITNESSES IN COURT PROCEEDINGS REVERSING AN INTERMEDIATE APPEALS COURT THE STATE SUPREME COURT SAID A MEDICAL WITNESS COULDN'T BE SUED FOR ALLEGEDLY MAKING FALSE STATEMENTS IN THE ARBITRATION OF A NEGLIGENCE CLAIM SUCH PROTECTION KNOWN AS A LITIGATION PRIVILEGE APPLIES TO QUASIJUDICIAL' PROCEEDINGS SUCH AS PRIVATE ARBITRATION PROCEEDINGS THAT ARE FUNCTIONALLY EQUIVALENT TO COURT PROCEEDINGS THE COURT SAID IN ITS RULING COURTS IN SEVERAL OTHER STATES HAVE RULED SIMILARLY NOTING THE GROWING POPULARITY OF ARBITRATION AS AN ALTERNATIVE TO LITIGATION THE STATE SUPREME COURT SAID WITNESSES WOULD BE RELUCTANT TO PARTICIPATE IN ARBITRATION IF THEY COULD BE SUED OVER THEIR TESTIMONY THE RULING DOESN'T APPLY TO RELATED PROCESSES SUCH AS MEDIATION STEVEN DRAPKIN A LABOR LAWYER AT THE LOS ANGELES OFFICE OF PROSKAUER ROSE GOETZ & MENDELSOHN SAID THE SUPREME COURT HAS REBUFFED EFFORTS TO LIMIT THE EFFICACY OF ARBITRATION AS A MEANS FOR RESOLVING DISPUTES OUTSIDE OF THE OVERCROWDED COURT SYSTEM MR DRAPKIN REPRESENTED THE LOS ANGELES COUNTY BAR ASSOCIATION AND THE BEVERLY HILLS BAR ASSOCIATION WHICH FILED A BRIEF IN SUPPORT OF THE WITNESS PROTECTION THE DISSENTING OPINION IN THE CASE SAID THE MATTER SHOULD HAVE BEEN LEFT TO LEGISLATORS TO RESOLVE THE DISSENT ALSO QUESTIONED WHETHER ARBITRATION PROCEEDINGS PROVIDE SUFFICIENT SAFEGUARDS TO DETER A WITNESS FROM MAKING FALSE STATEMENTS THE NEGLIGENCE CASE WAS BROUGHT BY THE FAMILY OF A WOMAN WHO DIED OF HEPATITIS ALLEGEDLY CONTRACTED AS A SIDE EFFECT OF A DRUG TREATMENT STEPHEN F VON TILL THE ATTORNEY FOR THE FAMILY SAID THE RULING COULD DISCOURAGE SOME PEOPLE FROM USING ARBITRATION KNOWLEDGEABLE INDIVIDUALS WON'T VOLUNTARILY PARTICIPATE IN A PROCESS WHERE FRAUD AND WRONGDOING IS UNCHECKED HE SAID IN A STATEMENT TWO FEDERAL APPEALS COURTS HAVE REJECTED ATTEMPTS BY BUSINESSES TO COMBINE WORKERS' COMPENSATION INSURANCE WITH THE GENERAL HEALTH INSURANCE THEY PROVIDE EMPLOYEES TWO EMPLOYEELEASING COMPANIES WANTED TO BUY BOTH KINDS OF INSURANCE UNDER A SINGLE PLAN GOVERNED BY A FEDERAL EMPLOYEEBENEFITS LAW THEY ARGUED THAT THEY SHOULDN'T ALSO HAVE TO BUY STATEMANDATED WORKERS' COMPENSATION WHICH THEY CHARACTERIZED AS COSTLY AND INEFFICIENT BUT APPEALS COURT PANELS IN SAN FRANCISCO AND BOSTON SAID THIS MONTH THAT THE COMPANIES MUST BUY THE SEPARATE WORKERS' COMP INSURANCE THEY CAN'T POSSIBLY AFFORD TO DOUBLEPAY SAID RICHARD G MOON AN ATTORNEY IN PORTLAND MAINE FOR A TRUST THAT HAD PROVIDED INSURANCE TO ONE OF THE COMPANIES NO EMPLOYER CAN THE COMPANY COMBINED MANAGEMENT INC AUBURN MAINE IS CONSIDERING ITS OPTIONS MR MOON SAID THE OTHER COMPANY STAFCOR BASED IN TORRANCE CALIF WAS SHUT DOWN BY REGULATORS LAST YEAR THE BUSINESSES' EFFORT TO BUY A COMBINED INSURANCE PLAN IS ONE OF SEVERAL APPROACHES THAT GO BY THE NAME OF 24HOUR COVERAGE MEANING THE EMPLOYEE IS COVERED FOR INJURIES AT THE WORKPLACE AND AFTER HOURS WORKERS' COMP SPECIALISTS SAY THERE'S MORE THAN ONE WAY TO ACHIEVE SUCH COVERAGE WITHOUT RUNNING AFOUL OF THE FEDERAL BENEFITS LAW ALTHOUGH OTHER LEGAL AND POLICY PROBLEMS REMAIN A PILOT PROJECT IS UNDERWAY IN OREGON ANOTHER IS READY TO GO IN CALIFORNIA AND THE CLINTON ADMINISTRATION HAS SAID IT MIGHT FOLD WORKERS' COMPENSATION INTO THE BASIC BENEFITS PACKAGE OF ITS HEALTH REFORM PLAN CBS SETTLEMENT CBS INC HAS SETTLED AN AGEDISCRIMINATION ACTION BROUGHT BY FORMER BEIJING CORRESPONDENT JOHN SHEAHAN THE SETTLEMENT THE TERMS OF WHICH WERE SUBJECT TO A CONFIDENTIALITY AGREEMENT AND NOT DISCLOSED CAME THREE DAYS INTO WHAT WAS EXPECTED TO BE A WEEKLONG TRIAL IN FEDERAL DISTRICT COURT IN NEW YORK MR SHEAHAN 56 HAD ALLEGED THAT THE NETWORK ILLEGALLY DISMISSED HIM AS A COSTCUTTING MEASURE IN 1991 WHILE OTHER YOUNGER CORRESPONDENTS WERE OFFERED ALTERNATIVE POSITIONS MR SHEAHAN'S LAWYER EXPRESSED PLEASURE WITH THE SETTLEMENT WHILE CBS IN A STATEMENT SAID IT WAS CLEAR FROM THE EVIDENCE THAT IT DID NOT DISCRIMINATE MARGARET A JACOBS CONTRIBUTED TO THIS ARTICLE THE CALIFORNIA SUPREME COURT RULED 43 THAT WITNESSES CAN'T BE SUED FOR STATEMENTS THEY MAKE IN CONNECTION WITH ARBITRATION PROCEEDINGS AN ITEM IN THE APRIL 29 LEGAL BEAT COLUMN INCORRECTLY STATED THAT THE RULING WAS 51 9405090169 940413 LETTERS TO THE EDITOR WHEN PRICE CONTROLS BENEFIT ALL LAST NOVEMBER I RECEIVED A LETTER FROM THE CATO INSTITUTE INVITING ME TO SIGN A STATEMENT THAT BEGAN WITH THE FOLLOWING WORDS PRICE CONTROLS PRODUCE SHORTAGES BLACK MARKETS AND REDUCED QUALITY THIS HAS BEEN THE UNIVERSAL EXPERIENCE IN THE FOUR THOUSAND YEARS THAT GOVERNMENTS HAVE TRIED TO ARTIFICIALLY HOLD PRICES DOWN USING REGULATIONS IT DID NOT TAKE ME LONG TO CONCLUDE THAT THE STATEMENT WAS AN ECONOMICALLY CARELESS ONE AND THAT A WELLTRAINED ECONOMIST WOULD NOT WANT TO SIGN SO UNQUALIFIED A STATEMENT I WAS THEREFORE ENORMOUSLY SURPRISED WHEN SHORTLY THEREAFTER ON JAN 12 YOU PUBLISHED THAT STATEMENT AS AN OPEN LETTER TO PRESIDENT CLINTON ON HEALTH CARE REFORM TOGETHER WITH THE SIGNATURE OF 560 ECONOMISTS QUITE A FEW OF THEM WITH A SOLID INTERNATIONAL REPUTATION NONETHELESS THE STATEMENT IS AN ECONOMICALLY INVALID ONE BECAUSE IT WAS NOT PRECEDED AS IT SHOULD HAVE BEEN BY SOME SUCH QUALIFICATION AS WHEN MARKETS ARE IDEALLY COMPETITIVE BY THIS WE MEAN IN PARTICULAR THAT PARTICIPANTS IN THE MARKET DO NOT HAVE APPRECIABLE ECONOMIC POWER IN THE SENSE THAT THEY CAN AFFECT THE PRICE THROUGH THEIR CONTROLS OVER THE QUANTITY THEY ARE PREPARED TO SELL BUT ONCE WE ALLOW FOR SOME SUCH QUALIFICATION THE RELEVANCE OF THE STATEMENT FOR THE HEALTH INDUSTRY BECOMES VERY QUESTIONABLE FOR HARDLY ANYONE WOULD ARGUE THAT ALL PARTICIPANTS IN THAT MARKET WORK UNDER PERFECT COMPETITION CONDITIONS YET WITHOUT SUCH A QUALIFICATION THE STATEMENT IS SERIOUSLY MISLEADING FOR AS EVERY ECONOMIST KNOWS OR SHOULD KNOW IN THE PRESENCE OF MARKET POWER A PRICE CEILING SUITABLY CHOSEN MAY HAVE THE EFFECT OF LOWERING THE PRICE BELOW WHAT IT WOULD BE IN A LAISSEZ FAIRE MARKET WHILE AT THE SAME TIME INCREASING OUTPUT ENOUGH TO SATISFY THE LARGER DEMAND AT THE LOWER PRICE THUS CREATING NO SHORTAGE THE RESULTS COULD WELL BE AN IMPROVEMENT OF THE GENERAL WELFARE EXCEPT OF COURSE THAT OF THE PRODUCERS WHO WOULD HAVE TO GIVE UP THE EXTRA PROFITS THEY WERE ABLE TO REAP BY THEIR ARTIFICIAL RESTRICTION OF OUTPUT EDUCATED ECONOMISTS KNOW THE CLASSIC ECONOMIC TEXT WHERE THIS ARGUMENT IS FULLY DEVELOPED ABBA P LERNER'S 1943 THE ECONOMICS OF CONTROL MACMILLAN 1994 WITH HIS WELLARGUED NOTION OF COUNTERSPECULATION WHICH SHOULD BE FAMILIAR TO MOST ECONOMISTS THE EMPIRICAL EVIDENCE FOR SUCH COGENT COUNTEREXAMPLE IS QUITE ABUNDANT THE MOST OBVIOUS ONE IS PROVIDED BY PAST EXPERIENCE WITH PUBLIC UTILITIES ELECTRICITY GAS TELEPHONE WHOSE PRICES HAVE TYPICALLY BEEN CONTROLLED BY UTILITY COMMISSIONS IE SUBJECTED TO A CEILING BECAUSE OF THE MONOPOLY POWER THEY ENJOY AS THE SOLE PROVIDERS OF SERVICES WITHIN THEIR FRANCHISE CAN ANYONE CLAIM THAT THESE CEILINGS HAVE UNIVERSALLY RESULTED IN SHORTAGES AND BLACK MARKETS OR DOUBT THAT THEIR ELIMINATION WOULD RESULT IN HIGHER PRICES AND REDUCED OUTPUT IN MANY INSTANCES THE MORAL OF THE STORY IS OF COURSE NOT THAT MY COLLEAGUES WERE WRONG IN OPPOSING THE CLINTON PROGRAM IN A FREE SOCIETY EVERYONE HAS THE RIGHT AND RESPONSIBILITY TO CRITICIZE ANY POLICY HE OPPOSES THE PROBLEM IS THAT THOSE WHO SIGNED GAVE THE WRONG IMPRESSION THAT THEY WERE OPPOSING THE PLAN AS PROFESSIONAL SCIENTIFIC ECONOMISTS RELYING ON BASIC ECONOMIC PRINCIPLE AS STATED IN THEIR OPENING PARAGRAPH I HOPE INSTEAD THAT THIS EPISODE MAY SERVE AS A LESSON TO ECONOMISTS INCLUDING ME AS WELL AS OTHER PROFESSIONALS AGAINST THE TEMPTATION OF CLOAKING OUR PERSONAL PREFERENCES UNDER THE MANTLE OF SCIENCE WITHOUT MAKING CERTAIN THAT WE ARE IN FACT RELYING ON BASIC SCIENTIFIC PRINCIPLES AND NOT ON IDIOSYNCRATIC VALUE JUDGMENTS SEE RELATED LETTERS LETTERS TO THE EDITOR THE DANGER OF MEDICAL PRICE CONTROLS WSJ MAY 9 1994 9404130114 YY94 MM05 9405090087 940425 LETTERS TO THE EDITOR LOSING OUR FREEDOM TO THE DRUG WAR I WAS NOT SURPRISED TO SEE YET ANOTHER LECTURE FROM THE SELFAPPOINTED DAD OF THE UNITED STATES WILLIAM J BENNETT LOSING THE DRUG WAR WITHOUT A FIGHT EDITORIAL PAGE APRIL 6 WHAT DID SURPRISE ME HOWEVER WAS MR BENNETT'S INCREDIBLE STATEMENT THAT IN A FREE SOCIETY FEW THINGS MATTER MORE THAN SPEAKING ABOUT THE RIGHT THINGS IN THE RIGHT WAY AND MAKING MORAL COMMON SENSE THE TOUCHSTONE OF SOCIAL POLICY WRONG MR BENNETT IN A FREE SOCIETY FEW THINGS MATTER MORE THAN KEEPING IT FREE THIS ENTAILS THE RECOGNITION OF INDIVIDUAL RIGHTS SO AS TO SUBORDINATE THE DEMANDS OF SOCIETY TO THE RIGHT OF INDIVIDUALS TO LIVE FOR THEIR OWN SAKE RIGHTS BY DEFINITION DO NOT IMPOSE OBLIGATIONS ON ANYONE ELSE AS SUCH THERE IS NO RIGHT TO SOMEONE ELSE'S DRUGFREE WELLBEING JUST AS THERE IS NO RIGHT TO DOCTORPROVIDED HEALTH CARE FURTHERMORE GOVERNMENTS IN A FREE SOCIETY ARE INSTITUTED AMONG MEN FOR THE PROTECTION OF THESE INDIVIDUAL RIGHTS NOTHING ELSE MAKING SOME ABSTRACT NOTION LIKE MORAL COMMON SENSE THE STANDARD OF STATE ACTION AS MR BENNETT WOULD LIKE OPENS THE DOOR TO GANG RULE BRUTE FORCE AND THE SUBSEQUENT DESTRUCTION OF LIBERTY WHILE I DON'T AGREE WITH THE CLINTON DRUG POLICY I AM APPALLED BY MR BENNETT'S INTELLIGENT ANTIDRUG STRATEGIES HE ASSERTS THAT COCAINE USAGE WENT DOWN IN 1985 THAT WAS THE YEAR THAT THE CRACK FORM OF COCAINE SWEPT AMERICA HE ALSO NOTES THAT IN 1992 DRUGRELATED HOSPITAL EMERGENCY ROOM VISITS WERE UP WASN'T BILL CLINTON RUNNING FOR OFFICE IN 1992 AND WEREN'T THE REPUBLICANS' DRUG POLICIES STILL IN EFFECT UNTIL OUR ELECTED OFFICIALS AND PUNDITS TAKE THE EFFECTS OF SUPPLY AND DEMAND ECON 101 INTO ACCOUNT NO ANTIDRUG STRATEGY WILL WORK THERE IS OVERWHELMING EMPIRICAL DATA THAT SHOWS THAT IRRESPECTIVE OF THE PENALTIES FOR DRUG DEALING INCLUDING DEATH THERE ARE PEOPLE READY TO BEGIN DEALING AT ALL TIMES BECAUSE THE PROFITS ARE SO GREAT THE MAGNITUDE OF THE PROFITS ARE DIRECTLY RELATED TO GOVERNMENTAL RESTRICTIONS ON SUPPLY DURING MR BENNETT'S REIGN AS DRUG CZAR THE DRUG MARKETPLACE PRODUCED EVER STRONGER DRUGS IN SMALLER CHEAPER PACKAGES AS A RESPONSE TO HIS POLICIES THIS TREND CONTINUES TODAY AS VERY POTENT FORMS OF HEROIN ARE BECOMING COMMONPLACE AND ULTRAPOTENT DRUGS MADE BY KITCHEN CHEMISTS FROM OVERTHECOUNTER COLD MEDICINES CAT ARE AVAILABLE NATIONWIDE OUR INNER CITIES HAVE BEEN DESTROYED AND PART OF A GENERATION OF OUR YOUTH HAVE BEEN LOST TO DRUG PROHIBITION AND ITS INORDINATE PROFITS GANG TURF WARS ARE NOTHING MORE THAN DRUG DEALER ORGANIZATIONS FIGHTING FOR DRUG SALES RIGHTS IN A GIVEN TERRITORY THE GANGS VIEW LIFE AS BEING CHEAP RELATIVE TO THE PROFIT POTENTIAL CREATED BY THE BENNETTESPOUSED ANTIDRUG POLICIES PROHIBITION HAS FAILED AND WILL CONTINUE TO FAIL BECAUSE OF BASIC ECONOMICS THE LAW OF SUPPLY AND DEMAND CANNOT BE REPEALED MR BENNETT SHOULD LOOK AT THE CONDITION OF OUR PRISON AND COURT SYSTEMS WHILE HE STUDIES THE CORRELATION BETWEEN THE MURDER RATE AND THE NUMBER OF DOLLARS SPENT ON DRUG PROHIBITION BY OUR GOVERNMENT THE MORE WE SPEND ON ARREST AND INCARCERATION FOR DRUGS THE MORE MURDERS THERE ARE WHAT PROPERTIES MUST A SUBSTANCE HAVE BEFORE WE GIVE OUR GOVERNMENT THE RIGHT TO KICK IN OUR DOORS WITHOUT KNOCKING SEARCH OUR HOMES WITHOUT WARRANTS BOATERS ALREADY FACE THIS NIGHTMARE SEIZE PROPERTY OF PEOPLE NOT CONVICTED OF A CRIME AND JAIL PEOPLE FOR LIFE THOUGH APATHETIC ABOUT THE DRUG WAR THE CLINTON ADMINISTRATION IS NOW FRANTIC OVER A RECENT STUDY SHOWING A TWOPERCENTAGEPOINT RISE IN SMOKING AMONG HIGH SCHOOL SENIORS SURGEON GENERAL JOYCELYN ELDERS IS WARNING AMERICANS IF WE DO NOT ACT SWIFTLY AND AGGRESSIVELY TO REVERSE THESE PATTERNS OF EARLY ADDICTION TO TOBACCO OUR YOUNG PEOPLE WILL FACE THE SAME NEEDLESS SUFFERING AND DEATH THAT SO MANY LIFETIME SMOKERS ARE FACING TODAY SHE IS JOINED BY THE FDA OSHA DEFENSE DEPARTMENT AND THE WHITE HOUSE IN DECLARING AN ALLOUT WAR ON CIGARETTE SMOKING AND THE TOBACCO INDUSTRY YET DESPITE GROWING EVIDENCE THAT ILLICIT DRUG USE AND ITS ACCESSIBILITY AMONG ADOLESCENTS IS ON THE RISE AFTER MORE THAN A DECADE OF STEADY DECLINE THE CLINTON ADMINISTRATION HAS SEEN NO SIMILAR NEED FOR CABINETWIDE ACTION CONSIDER THAT FROM 1992 TO 1993 ILLICIT DRUG USE AMONG HIGH SCHOOL SENIORS GREW FROM 271 TO 31 IN FACT THE USE OF MARIJUANA INCREASED FROM 326 IN 1992 TO 353 IN 1993 ALONG WITH LSD WHICH ALSO INCREASED FROM 86 TO 103 THE SURGEON GENERAL IS APPARENTLY UNDISTURBED BY THESE NEW FINDINGS WHAT TROUBLES ME IS THAT DESPITE CLEAR EVIDENCE THAT DRUG ABUSE CARRIES A GREATER RISK OF PHYSICAL PSYCHOLOGICAL SOCIAL AND FAMILIAL COMPLICATIONS THE CLINTON ADMINISTRATION HAS MADE THE WAR AGAINST CIGARETTE SMOKING AND NOT ILLICIT DRUG USE A TOP PRIORITY IT HAS SET ABOUT GUTTING THE OFFICE OF NATIONAL DRUG CONTROL POLICY DENOUNCING MANDATORY MINIMUM SENTENCING FOR DRUG TRAFFICKERS AND ENDORSING MASSIVE CUTS IN THE DRUG ENFORCEMENT DIVISION OF THE DRUG ENFORCEMENT AGENCY AS WELL AS DRUG INTERDICTION AND INTELLIGENCE PROGRAMS SEE RELATED LETTER LETTERS TO THE EDITOR ANNUAL SMOKING DEATHS WSJ MAY 9 1994 9404250053 YY94 MM05 9405090012 940414 MODERATE RISK TOBACCO'S TROUBLES JEOPARDIZE THE JOBS OF SURPRISINGLY FEW THE INDUSTRY'S EARLIER MOVES TO LIFT EFFICIENCY SOFTEN BLOWS EVEN IN SOUTHEAST DURHAM'S CHANGE OF HEART BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL COATS NC TOBACCO FARMING TURNED DUDLEY LANGDON'S GRANDFATHER FROM A STRUGGLING TENANT FARMER INTO A LANDOWNER WITH 400 ACRES OF RICH RED SOIL AND TENANTS OF HIS OWN UNTIL HIS DEATH IN 1955 DESTER LANGDON WAS A PILLAR OF THIS SMALL COMMUNITY JUST SOUTH OF THE RALEIGHDURHAM AREA HE FED LABORERS SUFFERING THROUGH THE DEPRESSION THOUGH LACKING MUCH FORMAL SCHOOLING HE SERVED ON THE SCHOOL BOARD AFTER ALL HE WAS A TOBACCO FARMER AND TOBACCO WAS KING IN NORTH CAROLINA THAT SAYS A LOT ABOUT WHAT HAS HAPPENED TO TOBACCO WITH THE INDUSTRY UNDER SIEGE AS PRESIDENT CLINTON PROPOSES A 75CENT SIN TAX ON CIGARETTES FASTFOOD CHAINS BAN SMOKING AND A HOUSE SUBCOMMITTEE DEMANDS THAT TOBACCOCOMPANY EXECUTIVES TESTIFY ABOUT WHETHER CIGARETTES SHOULD BE CLASSIFIED AS NARCOTICS THE TOBACCO LOBBY IS ARGUING THAT THE INDUSTRY IS TOO BIG AND TOO IMPORTANT TO LOSE PLOWING UNDER TOBACCO ADVOCATES SAY WOULD DEVASTATE NORTH CAROLINA AND OTHER TOBACCO STATES WIPING OUT MANY THOUSANDS OF JOBS AND OPENING A GAPING HOLE IN THE ECONOMY TOBACCO SAYS CHARLES HARVEY PRESIDENT OF THE TOBACCO GROWERS ASSOCIATION OF NORTH CAROLINA IS ABSOLUTELY BASIC TO NORTH CAROLINA BUT EVEN IN THE SOUTHEAST TOBACCO THOUGH STILL HIGHLY PROFITABLE IS A WISP OF ITS FORMER SELF AND IN NORTH CAROLINA HOME OF TOBACCO ROAD AND PRODUCER OF 52 OF ALL US TOBACCO THINGS HAVE CHANGED YOU'D BE SURPRISED AT HOW SMALL THE TOBACCO INDUSTRY REALLY IS SAYS MARK VITNER AN ECONOMIST AT FIRST UNION BANK IN CHARLOTTE NC TOBACCOPRODUCT MANUFACTURING ACCOUNTED FOR ONLY 43 OF NORTH CAROLINA'S GROSS STATE PRODUCT IN 1990 DOWN FROM 116 IN 1977 ACCORDING TO THE US COMMERCE DEPARTMENT TOBACCO NOW PRODUCES ONLY 20 OF ITS TOTAL FARM INCOME TRAILING THE 29 FROM POULTRY AND EGGS THE STATE AGRICULTURE DEPARTMENT SAYS TOBACCO IS EVEN LESS IMPORTANT IN OTHER MAJOR TOBACCOPRODUCING STATES IN VIRGINIA TOBACCOPRODUCT MANUFACTURING CONTRIBUTED 21 OF THE GROSS STATE PRODUCT IN 1990 DOWN FROM 59 IN 1977 IN KENTUCKY ITS ROLE SLID TO 177 FROM 7 IN THAT PERIOD THE COMMERCE DEPARTMENT SAYS SOUTH CAROLINA AND TENNESSEE THE OTHER BIG TOBACCO STATES SHOW SIMILAR TRENDS NATIONWIDE MEANWHILE TOBACCO'S PERCENTAGE OF GROSS DOMESTIC PRODUCT THE TOTAL OUTPUT OF GOODS AND SERVICES FELL TO 020 FROM 054 THE DEPARTMENT SAYS PERHAPS EVEN MORE STRIKING IS TOBACCO'S DWINDLING EMPLOYMENT IN THE 1950S TOBACCO EMPLOYED MORE THAN TWICE THE NUMBER OF NORTH CAROLINIANS AS A PROPORTION OF THE POPULATION THAN IT DOES TODAY ACCORDING TO THOMAS FAISON A SENIOR ASSOCIATE AT MDC INC AN ECONOMICDEVELOPMENT FIRM IN CHAPEL HILL NC TODAY THE TOBACCO GROWERS ASSOCIATION SAYS 275000 WORKERS IN NORTH CAROLINA ARE STILL INVOLVED IN HARVESTING TOBACCO STEMMING CUTTING AND DRYING THE LEAVES AND ROLLING THEM INTO CIGARETTES OR CRUSHING THEM INTO CHEWING TOBACCO BUT THE ASSOCIATION CAN'T CITE A SOURCE FOR THAT NUMBER SOME OF THOSE PEOPLE ECONOMISTS SAY MAY BE SEASONAL WORKERS HIRED FOR THE SUMMER HARVEST ACCORDING TO PATRICIA NIELSEN A LABOR DEPARTMENT ECONOMIST IN ATLANTA ONLY 18600 NORTH CAROLINIANS WORK IN MANUFACTURING TOBACCO PRODUCTS A NEGLIGIBLE SLICE OF THE STATE'S EMPLOYMENT AND A DROP OF MORE THAN 30 SINCE 1972 BY CONTRAST ABOUT 500000 ARE EMPLOYED IN THE RETAIL SECTOR SOME 480000 IN SERVICES AND 450000 IN GOVERNMENT JOBS KENTUCKY AND VIRGINIA ALSO HAVE POSTED DECLINES IN TOBACCOMANUFACTURING JOBS IN ADDITION 13000 TOBACCO FARMERS ARE LEFT IN NORTH CAROLINA ACCORDING TO A BLAKE BROWN AN ECONOMIST AT NORTH CAROLINA STATE UNIVERSITY THE SIGNS OF TOBACCO'S WANING ECONOMIC INFLUENCE ARE EVERYWHERE IN DURHAM THE CITY BUILT BY TOBACCO MAGNATE JAMES BUCHANAN BUCK DUKE ONLY ONE TOBACCO FACTORY REMAINS FROM THE MANY THAT EARLIER THIS CENTURY CHURNED OUT AS MUCH AS 20 OF ALL US CIGARETTES ABOUT 650 PEOPLE NOW WORK AT THAT PLANT WHICH IS OWNED BY THE LIGGETT GROUP SUBSIDIARY OF BROOKE GROUP LTD OF NEW YORK THAT'S DOWN FROM 3000 25 YEARS AGO ACCORDING TO THE DURHAM CHAMBER OF COMMERCE A FEW BLOCKS AWAY AT BRIGHTLEAF SQUARE ANOTHER OLD TOBACCO FACTORY HAS BEEN TURNED INTO A SHOPPING CENTER WITH GOURMETFOOD STORES ANTIQUE DEALERS AND EUROPEANSTYLE BEAUTY SALONS TOBACCO IS ONLY FOURTH OR FIFTH AMONG NORTH CAROLINA'S INDUSTRIES AND NORTH CAROLINA IS THE TOBACCO STATE SAYS DONALD RATAJCZAK DIRECTOR OF THE ECONOMIC FORECASTING DIVISION AT GEORGIA STATE UNIVERSITY WHAT HAPPENED THE ANTITOBACCO MOVEMENT AND A DROP IN CONSUMPTION HAVE HURT ALTHOUGH US CIGARETTE EXPORTS ROSE TO ABOUT 200 BILLION IN 1992 FROM ABOUT 60 BILLION IN 1983 THAT INCREASE WAS PARTLY OFFSET BY THE DECLINE IN US CONSUMPTION TO 495 BILLION CIGARETTES FROM 598 BILLION ECONOMISTS CITE OTHER FACTORS AS WELL THE SOUTH ESPECIALLY THE CAROLINAS HAS SPENT THE PAST 20 YEARS DIVERSIFYING AWAY FROM AN AGRARIAN ECONOMY AND PURSUING HIGHTECH AND FOREIGN INVESTMENT TODAY IN DURHAM COUNTY LOCAL LEADERS AREN'T VERY CONCERNED ABOUT PRESIDENT CLINTON'S 75CENT TAX PROPOSAL THEY ARE MORE WORRIED ABOUT HOW HEALTHCARE REFORM MIGHT AFFECT THE 25 OF COUNTY RESIDENTS IN HEALTHRELATED JOBS EVEN IN WINSTONSALEM FOR WHICH TWO MAJOR CIGARETTE BRANDS WERE NAMED MUNICIPAL LEADERS BRAG ABOUT HOW IT HAS DIVERSIFIED ITS ECONOMY AWAY FROM THE PATERNALISTIC UMBRELLA OF THE RJ REYNOLDS TOBACCO CO SUBSIDIARY OF RJR NABISCO HOLDINGS CORP IRONICALLY THE TOBACCO INDUSTRY'S OWN EFFORTS TO BECOME MORE EFFICIENT MAY HAVE ROBBED IT OF ONE OF THE BIGGEST ECONOMIC BATS AN INDUSTRY CAN WIELD JOBS TURNING A LEAF OF TOBACCO INTO A CIGARETTE HAS BECOME INCREASINGLY MECHANIZED MANY OF THE JOBS HARVESTING AND CURING TOBACCO AND MAKING CIGARETTES NOW ARE DONE BY MACHINES AND WITH A SMALLER PROPORTION OF NORTH CAROLINA'S POPULATION THUS EMPLOYED THE INDUSTRY HAS LOST SOME OF ITS CLOUT IN THE PURSUIT OF ALTOGETHER LOGICAL INDUSTRY AIMS THE INDUSTRY INCREASED ITS VULNERABILITY TO ATTACKS FROM ANTISMOKING FORCES MDC'S MR FAISON SAYS THE ONCE UNTHINKABLE LOSS OF THE INDUSTRY IS NOW BECOMING QUITE THINKABLEEVEN IN NORTH CAROLINA WHERE YEARS AGO AN ATTACK ON TOBACCO WOULD HAVE BEEN DEEMED TANTAMOUNT TO TREASON AS IN A LOT OF AGRICULTURE TOBACCO FARMING HAS UNDERGONE A TREMENDOUS CONSOLIDATION TO STAY COMPETITIVE FARMS GOT BIGGER IN THE PAST FOUR ACRES COULD SUPPORT A FAMILY TODAY A TOBACCO FARMER NEEDS AT LEAST 40 MR LANGDON SAYS SO THE NUMBER OF TOBACCO FARMS HAS BEEN DECLINING IN SOUTH CAROLINA THE TOTAL IN ONCEAPTLYNAMED CHESTERFIELD COUNTY HAS DROPPED TO 50 FROM 601 IN 1954 NEARBY MARLBORO COUNTY HAS ONLY 76 TOBACCO FARMS DOWN FROM 754 BACK THEN IN 1985 THE INDUSTRY AFRAID THAT ITS FOES WOULD GET TOBACCO SUBSIDIES ABOLISHED TOOK OVER THE PRICESUPPORT PROGRAM WHICH HAD BEEN FEDERALLY FUNDED NOW FARMERS AND MANUFACTURERS THEMSELVES PUT UP THE MONEY TO KEEP PRICES FROM FALLING TOO LOW NOT THAT TOBACCO ISN'T STILL LUCRATIVE IT IS BY FAR THE MOST PROFITABLE FARM ENTERPRISE IN NORTH CAROLINA SAYS DR BROWN AT NORTH CAROLINA STATE ACCOUNTING FOR 1 BILLION IN FARM REVENUE PLUS 125 BILLION IN MANUFACTURING REVENUE MOREOVER THE DROUGHTRESISTANT TOBACCO LEAF IS ONE OF THE MOST RELIABLE CROPS IN FARMING TODAY HOWEVER TOBACCO FARMERS FIND THEMSELVES BEREFT OF MUCH OF THEIR LONGTIME RESPECT INFLUENCE AND POWER AND THAT'S A FAR CRY FROM THE OLD DAYS WHEN NORTH CAROLINA'S SOCIETY AND CULTURE REVOLVED AROUND ITS HUGE FARMS AND THE MOST PROFITABLE FARMS RAISED TOBACCO TO BE SOMEBODY IN THE FARMING COMMUNITY YOU HAD TO GROW TOBACCO SAYS MR HARVEY OF THE GROWERS' ASSOCIATION TOBACCO YIELDED SO MUCH MONEY HE SAYS THAT GROWING IT PROVED A FARMING FAMILY WAS NOT JUST EKING OUT A LIVING TOBACCO FARMERS HE SAYS FORMED A FRATERNITY THAT EVOLVED FROM PRIDE IN THEIR KNOWLEDGE OF WHEN TO CURE IT WHEN TO HARVEST IT THEY SERVED ON COMMUNITY BOARDS THEY WERE THE REASON MUCH OF SMALLTOWN NORTH CAROLINA EXISTED AND THEY PACKED THE FARM BUREAU WHICH LOBBIED WASHINGTON ON BEHALF OF AGRICULTURE BUT NOW DUDLEY LANGDON DECRIES THE CHANGE OF DESTER LANGDON'S 28 GRANDCHILDREN ONLY DUDLEY FARMS TOBACCO FOR A LIVING THE OTHERS ARE SCHOOLTEACHERS AND PHARMACISTS AND NUTRITIONISTS THE FUTURE DOESN'T LOOK BRIGHT EITHER I DON'T SEE A LOT OF YOUNGER PEOPLE GETTING INTO TOBACCO FARMING NOW MR LANGDON SAYS WHEN MY GENERATION STOPS I DON'T KNOW WHAT WILL HAPPEN HE SADLY RECOUNTS TALKING TO HIS DAUGHTER'S KINDERGARTEN CLASS RECENTLY ABOUT TOBACCO FARMING WHEN HE ATTENDED THE SAME SCHOOL 30 YEARS AGO 75 OF THE STUDENTS WERE CHILDREN OF TOBACCO FARMERS HE SAYS TODAY HIS DAUGHTER IS THE ONLY ONE IN HER CLASS ALSO INFURIATING THE FARMERS IS THE INFLUX OF AFFLUENT YUPPIES WHO MOVE OUT TO THE COUNTRY AND THEN GRIPE ABOUT FARM ODORS CAN YOU BELIEVE THAT SAYS KEITH PARRISH A HARNETT COUNTY FARMER THEY COMPLAIN THAT WE'RE TRYING TO KILL THEM WITH OUR PESTICIDES OR THAT THEY DON'T LIKE THE SMELL OF TOBACCO COMMUNITIES THAT ONCE IDOLIZED TOBACCO ARE TRYING TO DISTANCE THEMSELVES FROM THE INDUSTRY IN DURHAM TOBACCO HAS BEEN UPSTAGED BY RESEARCH TRIANGLE PARK A HIGHTECH RESEARCH AREA THAT BEGAN AS A JOINT VENTURE OF THREE MAJOR UNIVERSITIES AND TOOK OFF IN THE 1980S ATTRACTING DRUG COMPANIES AND SCIENTIFIC RESEARCH ENTITIES IN 1987 AMERICAN TOBACCO CO FOUNDED BY BUCK DUKE ALMOST 100 YEARS EARLIERCLOSED ITS LAST PLANT IN DURHAM THE AMERICAN BRANDS INC SUBSIDIARY TRANSFERRED THE OPERATIONS TO REIDSVILLE 61 MILES AWAY AT ONE TIME SUCH A MOVE WOULD HAVE NEARLY SNUFFED OUT DURHAM'S ECONOMY BUT BY 1987 ONLY 5 OF DURHAM'S WORKERS WERE IN TOBACCO MANUFACTURING MANY MORE WERE IN RESEARCH AT DUKE UNIVERSITY OR DISCOVERING THE AIDS DRUG AZT AT BURROUGHS WELLCOME CO OR CARING FOR MEDICAL PATIENTS THE CITY HAS A PHYSICIANTOPOPULATION RATIO FIVE TIMES THE NATIONAL AVERAGE MANY BUSINESS LEADERS WERE HAPPY TO SEE THE PLANT GO DURHAM WAS READY FOR A NEW IMAGE SAYS ROBERT BOOTH WHO HEADS THE CHAMBER OF COMMERCE WE WERE TIRED OF BEING REFERRED TO AS A TOBACCO TOWN OR BULL CITY REFERRING TO THE CHEWING TOBACCO AND WE DIDN'T WANT TO BE LINKED TO A DYING INDUSTRY SO THE CITY LAUNCHED A CAMPAIGN TO CHANGE ITS IMAGE TO CAPITALIZE ON THE PRESTIGE OF THE DUKE UNIVERSITY MEDICAL CENTER AND RESEARCH TRIANGLE PARK DURHAM RENAMED ITSELF THE CITY OF MEDICINE AND BEGAN HANDING OUT 5000 CITY OF MEDICINE AWARDS ANNUALLY ONE SUCH AWARD WENT TO C EVERETT KOOP THE FORMER US SURGEON GENERAL WHO WHEN ACCEPTING IT ATTACKED TOBACCO EXPORTS AS RATHER IMMORAL EXPORTING DEATH DISEASE AND DISABILITY TO THE THIRD WORLD NEVERTHELESS DURHAM'S ONE REMAINING CIGARETTE FACTORY WITH ITS TOWERING SMOKESTACKS AND MASSIVE BRICK FACADE LOOMS OVER ITS DOWNTOWN WHEN THE WIND BLOWS RIGHT THE LIGGETTOWNED FACTORY WAFTS A SWEET PUNGENT ODOR BUT THERE ITS INFLUENCE ENDS SAYS THE CHAMBER'S MR BOOTH REALISTICALLY HOW IMPORTANT IS A COMPANY THAT EMPLOYS 650 PEOPLE IN A WORK FORCE OF 42000 LAST YEAR DURHAM PASSED AN ANTISMOKING ORDINANCE BANNING SMOKING FROM SHOPPING MALLS GROCERY STORES AND POORLY VENTILATED WORK AREAS THERE WAS BARELY A PEEP OF OPPOSITION SAYS ELLEN RECKHOW A DURHAM COUNTY COMMISSIONER RATHER RESIDENTS ASKED AT PUBLIC HEARINGS THAT THE BAN BE STRENGTHENED WE HAD ORIGINALLY SAID WE'D ALLOW SMOKING IN 50 OF A FOOD COURT AT A SHOPPING MALL MS RECKHOW SAYS BUT MALL OWNERS CAME TO US AND SAID NO WE'D RATHER GO COLD TURKEY' NOW NO SMOKING IS ALLOWED ANYWHERE IN SHOPPING MALLS AND IN HARNETT COUNTY THE REMAINING FARMERS FEEL BETRAYED IT'S HARD FOR ME TO BELIEVE THAT TOBACCO IS THE KILLER THEY TRY TO MAKE IT OUT TO BE MR PARRISH SAYS PEOPLE SHOULD LOOK AT WHAT'S HAPPENING TO A WAY OF LIFE HERE I FEEL A LITTLE DISAPPOINTED THAT SOCIETY HAS FORGOTTEN WHAT TOBACCO HAS DONE OVER THE YEARS SEE RELATED LETTER LETTERS TO THE EDITOR TOBACCO INDUSTRY'S FALL WILL HURT OUR ECONOMY WSJ MAY 9 1994 9404140134 YY94 MM05 9405090095 940114 DEAR MR PRESIDENT IN 1930 1028 ECONOMISTS FORESAW THE DEPRESSION IN A LETTER THEY SENT PRESIDENT HERBERT HOOVER WARNING AGAINST THE SMOOTHAWLEY TARIFF ACT TODAY WE PRINT A SIMILAR LETTER ALONG WITH THE NAMES OF SOME OF ITS 562 SIGNATORIES WARNING AGAINST THE ECONOMIC CONSEQUENCES OF THE CLINTON HEALTH CARE PLAN IT WAS RELEASED AT A NEWS CONFERENCE AT THE NATIONAL PRESS CLUB IN WASHINGTON YESTERDAY PRICE CONTROLS PRODUCE SHORTAGES BLACK MARKETS AND REDUCED QUALITY THIS HAS BEEN THE UNIVERSAL EXPERIENCE IN THE 4000 YEARS THAT GOVERNMENTS HAVE TRIED TO ARTIFICIALLY HOLD PRICES DOWN USING REGULATIONS YOU INSIST THAT YOUR HEALTH CARE PLAN AVOIDS PRICE CONTROLS WE RESPECTFULLY DISAGREE YOUR PLAN SETS THE FEES CHARGED BY DOCTORS AND HOSPITALS CAPS ANNUAL SPENDING ON HEALTH CARE LIMITS INSURANCE PREMIUMS AND IMPOSES PRICE LIMITATIONS ON NEW AND EXISTING DRUGS IN COUNTRIES THAT HAVE IMPOSED THESE TYPES OF REGULATIONS PATIENTS FACE DELAYS OF MONTHS AND YEARS FOR SURGERY GOVERNMENT BUREAUCRATS DECIDE TREATMENT OPTIONS INSTEAD OF DOCTORS OR PATIENTS AND INNOVATIONS IN MEDICAL TECHNIQUES AND PHARMACEUTICALS ARE DRAMATICALLY REDUCED HERE IN AMERICA THE THREAT OF PRICE CONTROLS ON MEDICINES HAS ALREADY DECREASED RESEARCH AND DEVELOPMENT AT DRUG COMPANIES WHICH WILL LEAD TO REDUCED DISCOVERIES AND THE LOSS OF LIFE IN THE FUTURE IN THE 1970S GOVERNMENT TRIED TO REGULATE THE PRICE OF A SIMPLE HOMOGENOUS PRODUCT GASOLINE THE RESULT WAS A SOCIAL AND ECONOMIC DISASTER PEOPLE WERE FORCED TO WASTE HOURS WAITING IN LINES TO PURCHASE GASOLINE LONG WAITS FOR SURGERY AND OTHER MEDICAL CARE WILL HAVE FAR MORE SERIOUS CONSEQUENCES CAPS FEE SCHEDULES AND OTHER GOVERNMENT REGULATIONS MAY APPEAR TO REDUCE MEDICAL SPENDING BUT SUCH GAINS ARE ILLUSORY WE WILL INSTEAD END UP WITH LOWERQUALITY MEDICAL CARE REDUCED MEDICAL INNOVATION AND EXPENSIVE NEW BUREAUCRACIES TO MONITOR COMPLIANCE THESE CONTROLS WILL HURT PEOPLE AND THEY WILL DAMAGE THE ECONOMY WE URGE YOU TO REMOVE PRICE CONTROLS IN ANY FORM FROM YOUR HEALTH CARE PLAN SEE RELATED LETTER LETTERS TO THE EDITOR WHEN PRICE CONTROLS BENEFIT ALL WSJ APRIL 13 1994 SEE RELATED LETTERS LETTERS TO THE EDITOR THE DANGER OF MEDICAL PRICE CONTROLS WSJ MAY 9 1994 9401140047 9404130109 YY94 MM04 YY94 MM05 9405060196 940419 REVIEW & OUTLOOK EDITORIAL ENRAGING SPECIES ACT THE THIRD AMENDMENT TO THE BILL OF RIGHTS STATES THAT NO SOLDIER CAN BE QUARTERED IN ANY HOME WITHOUT THE CONSENT OF THE OWNER SOMEHOW THOUGH IT APPARENTLY NEVER OCCURRED TO THE FOUNDING FATHERS THAT WE MIGHT SOMEDAY NEED AN AMENDMENT AGAINST THE ARBITRARY QUARTERING OF ENDANGERED SPECIES ON PRIVATE LAND GOOD THING THE FOUNDERS DIDN'T LIVE TO SEE THE DAY OURS WHEN PROPERTY OWNERS ALL OVER AMERICA WOULD BE TOLD TO IDLE THEIR LAND AND EFFECTIVELY USE IT ONLY AS A WILDLIFE REFUGE AMBITIOUS GOVERNMENT ECOSYSTEM MANAGEMENT PLANS ARE LOCKING UP MILLIONS OF ACRES OF PRIVATE LAND WITHOUT COMPENSATION TAKE THE SPOTTED OWL WHICH HAS EFFECTIVELY HALTED MOST TIMBER PRODUCTION IN THE PACIFIC NORTHWEST THE ANDERSON & MIDDLETON LOGGING CO HAS BEEN ENJOINED FROM HARVESTING ANY TIMBER ON 72 ACRES OF ITS LAND IN WASHINGTON STATE NO SPOTTED OWLS LIVE ON ITS LAND BUT TWO HAVE BEEN SEEN NESTING ON GOVERNMENT LAND 16 MILES AWAY RESIDENTIAL OWNERS ARE ALSO AFFECTED MARJ AND ROGER KRUEGER SPENT 53000 ON A LOT FOR THEIR DREAM HOUSE IN THE TEXAS HILL COUNTRY BUT THEY AND OTHER OWNERS HAVE BEEN BARRED FROM BUILDING BECAUSE THE GOLDENCHEEKED WARBLER HAS BEEN FOUND IN THE CANYONS ADJACENT TO THEIR LAND THE GOVERNMENT JUSTIFIES THESE RESTRICTIONS BY NOTING THAT THE ENDANGERED SPECIES ACT BARS ACTIONS THAT HARM CRITTERS PROTECTED UNDER IT THE US FISH AND WILDLIFE SERVICE INTERPRETS THAT TO INCLUDE ANY ACTION THAT RESULTS IN SIGNIFICANT HABITAT MODIFICATION THAT COULD AFFECT THE BREEDING FEEDING OR SHELTERING PATTERNS OF A SPECIES IT HAS ISSUED COUNTLESS EDICTS BARRING EVEN SUCH ORDINARY USES OF PROPERTY AS CLEARING BRUSH OR HARVESTING TREES BECAUSE THEY MIGHT MODIFY NEARBY HABITAT EVEN SOME ENVIRONMENTALISTS HAVE QUESTIONED IF CONGRESS INTENDED SUCH RESTRICTIONS MICHAEL BEAN CHAIRMAN OF THE ENVIRONMENTAL DEFENSE FUND'S WILDLIFE PROGRAM HAS NOTED THERE ARE FORCEFUL ARGUMENTS THAT SUCH A BROAD INTERPRATION IS IMPROPER LAST MONTH THE US COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA AGREED IT INVALIDATED THE US FISH AND WILDLIFE REGULATION THAT PREVENTED HABITAT MODIFICATION ON PRIVATE LAND THE COURT RULED THAT THE REGULATION WAS NEITHER CLEARLY AUTHORIZED BY CONGRESS NOR A REASONABLE INTERPRETATION' OF THE STATUTE THE COURT'S DECISION ENRAGED RADICAL ENVIRONMENTALISTS THEY SUPPORT A PROVISION TO THE MARINE MAMMAL PROTECTION ACT NOW BEFORE CONGRESS THAT WOULD EXPLICITLY ALLOW THE REGULATION OF PRIVATE LAND USE AND WOULD BOLSTER THE CLINTON ADMINISTRATION IN ITS ATTEMPT WHICH IT ANNOUNCED YESTERDAY TO OVERTURN THE DC COURT OF APPEALS DECISION THE SENATE REFUSED TO INCLUDE SUCH LANGUAGE IN ITS VERSION OF THE BILL BUT IT MAY WIND UP ADDING IT IN CONFERENCE IF THE HOUSE INSISTS TODAY REP GERRY STUDDS WILL DEMAND A HOUSE VOTE TO INSIST THE REGULATORY LANGUAGE BE RETAINED ENVIRONMENTAL GROUPS AGITATED BY RECENT PROPERTY RIGHTS VICTORIES IN CONGRESS ARE DETERMINED TO PREVAIL THIS TIME THE DISPUTE OVER ENDANGERED SPECIES ISN'T OVER WHETHER OR NOT SOCIETY SHOULD PROTECT THEM IT'S BETWEEN A POLICY THAT REFUSES TO SET PRIORITIES AND INSISTS ON PRESERVATION NO MATTER WHAT THE COSTS TO THE HUMAN SPECIES OR ALTERNATIVELY A MORE BALANCED APPROACH WE ARE HARD PUT TO SEE HOW THE SPECIES ACT CAN ITSELF SURVIVE POLITICALLY OPERATING AS AN ENVIRONMENTALIST LAND GRAB OF OTHER PEOPLE'S PROPERTY THE SERIOUSNESS OF THE CLAIMS FOR THESE VARIOUS SPECIES MIGHT BE BETTER TESTED IF THE GOVERNMENT HAD TO COMPENSATE LANDOWNERS FOR THEIR LOSSES THAT APPROACH ISN'T JUST OUR IDEA IT IS THE TAKINGS CLAUSE OF THE FIFTH AMENDMENT TO THE BILL OF RIGHTS SEE RELATED LETTER LETTERS TO THE EDITOR TUCKER ACT ENFORCES LANDOWNERS' RIGHTS WSJ MAY 6 1994 SEE RELATED LETTER LETTERS TO THE EDITOR IF ECOSYSTEM IS HARMED WE'RE ALL ENDANGERED WSJ MAY 12 1994 9404190041 YY94 MM05 9405060064 940422 THE FALSE GODS OF EARTH DAY BY ROBERT A SIRICO EARTH DAY CELEBRATED TODAY HAS TAKEN ON A DISTINCTLY RELIGIOUS TONE IT IS A SIGN OF A GROWING STRAIN OF MODERN POLITICAL THEOLOGY THAT ATTEMPTS TO LINK RELIGION STATIST POLITICS AND EXTREME ENVIRONMENTALISM THE NATIONAL RELIGIOUS PARTNERSHIP FOR THE ENVIRONMENT FOR EXAMPLE IS SPENDING 45 MILLION TO DISTRIBUTE TENS OF THOUSANDS OF ENVIRONMENTAL AWARENESS KITS WITH AN OVERTLY POLITICAL AGENDA TO THE NATION'S RELIGIOUS CONGREGATIONS FOR USE THIS WEEKEND AMONG THE SUGGESTIONS FOR WORSHIP IN MAINLINE PROTESTANT CHURCHES FOR EXAMPLE IS A CONFESSION OF ENVIRONMENTAL SINS ACCORDING TO AN APRIL 16 WASHINGTON POST REPORT THE CELEBRANT SAYS WE USE MORE THAN OUR SHARE OF THE EARTH'S RESOURCES WE ARE RESPONSIBLE FOR MASSIVE POLLUTION OF EARTH WATER AND SKY WE THOUGHTLESSLY DROP GARBAGE AROUND OUR HOMES SCHOOLS CHURCHES PLACES OF WORK AND PLACES OF PLAY WE SQUANDER RESOURCES ON TECHNOLOGIES OF DESTRUCTION BOMBS COME BEFORE BREAD THE CONGREGATION RESPONDS WE ARE KILLING THE EARTH WE ARE KILLING THE WATERS WE ARE KILLING THE SKIES FOR MANY PEOPLE ENVIRONMENTALISM HAS BECOME A RELIGION IN ITSELF AND ENVIRONMENTALISTS HAVE TRIED TO SUPERIMPOSE AN EXALTED VIEW OF NATURE ONTO TRADITIONAL TEACHINGS REPRESENTATIVE IS MATTHEW FOX A FORMER CATHOLIC PRIEST AND AUTHOR OF THE COMING OF THE COSMIC CHRIST MR FOX DESCRIBES THE EARTH AS A KIND OF CHRIST FIGURE AND DEEMS AS CHRISTOFASCISM ANY THEOLOGY THAT VIEWS JESUS'S PERSONHOOD AS A UNIQUE REVELATION HE URGES CHRISTIANS TO MOVE BEYOND A THEOLOGY BASED ON SIN AND REDEMPTION TOWARD A CREATION SPIRITUALITY WITH NATURE AS THE PRIMARY REVELATION ENVIRONMENTALISM HAS EVEN SPAWNED A REVIVAL OF PAGAN EARTH WORSHIP IN THE FORM OF GAIA A CONCEPT FIRST ADVANCED BY ATMOSPHERIC SCIENTIST JAMES LOVELOCK MORE THAN 20 YEARS AGO THE PREMISE OF GAIAN THEORY IS THAT THE EARTH ITSELF IS A SUPERORGANISM BOTH LIVING AND DIVINE THE MOVEMENT HAS FOUND FOLLOWERS AMONG FEMINISTS ATTRACTED TO THE IDEA OF MOTHER EARTH OR AN EARTH GODDESS WHILE SOME MIGHT WRITE OFF THESE EXAMPLES AS COMING FROM A LUNATIC FRINGE THEY CANNOT BE SO EASILY DISMISSED VICE PRESIDENT GORE DEVOTES AN ENTIRE CHAPTER TO ENVIRONMENTALISM OF THE SPIRIT IN HIS WIDESELLING EARTH IN THE BALANCE AND AT THE UNSPONSORED EARTH SUMMIT IN RIO DE JANEIRO IN 1992 A CONTINGENT FROM THE MAINLINE UNITED CHURCH OF CHRIST HELD A DEMONSTRATION THAT OPENED WITH THE TRADITIONAL HYMN WERE YOU THERE WHEN THEY CRUCIFIED MY LORD SUBSTITUTING EARTH FOR LORD SUCH BELIEFS POSE A THREAT TO ORTHODOX FAITHS FOR WESTERN RELIGIOUS TRADITIONS THE ROLE OF FAITH IN PUBLIC LIFE HAS BEEN TO STRIVE FOR JUSTICE AND TO IMPROVE LIFE NOT PRIMARILY FOR PLANTS AND ANIMALS BUT FOR HUMAN BEINGS A GENERALIZED ATTACK ON DEVELOPMENT AND CONSUMPTION COMMON AMONG THE ENVIRONMENTALIST FAITHFUL UNDERMINES THE ROLE THAT ECONOMIC GROWTH HAS PLAYED IN ALLOWING A MORE HUMANE EXISTENCE FOR PEOPLE AS AN EMPIRICAL MATTER THE ENVIRONMENT IS FAR CLEANER WHERE ECONOMIES ARE FREE FROM THE STATISM ADVOCATED BY MANY ENVIRONMENTALISTS MOREOVER THE ATTEMPT TO MAKE EARTH DAY A RELIGIOUS HOLIDAY FORGETS THE PRIMARY PURPOSE OF TRADITIONAL FAITH TO AVOID PERSONAL SIN AND TO ATTAIN SALVATION TO DO THIS MAN MUST OBEY GOD'S LAW AS FOUND IN THE 10 COMMANDMENTS THERE IS NO COMMANDMENT AGAINST LITTERING BUT THERE IS A VERY STRAIGHTFORWARD ONE ABOUT WORSHIPING FALSE GODS THIS COMMANDMENT SHOULD CAUSE THE EARTH DAY RELIGIONISTS TO RESIST THE TEMPTATION TO REPLACE GOD WITH THE EARTH AS THE CENTER OF ADORATION THE GENESIS ACCOUNT OF CREATION IS CLEAR IN THE CENTRAL POINT THAT ENVIRONMENTALISTS FIND SO SCANDALOUS THE EARTH WAS A GIFT FROM GOD FOR OUR USE AFTER GOD CREATED MAN AND WOMAN IN HIS IMAGE HE BLESSED THEM WITH THE WORDS BE FERTILE AND MULTIPLY FILL THE EARTH AND SUBDUE IT HAVE DOMINION OVER THE FISH OF THE SEAS THE BIRDS OF THE AIR AND ALL THE LIVING THINGS THAT MOVE ON THIS EARTH GENESIS 128 THIS IS THE FIRST CHARGE LONG BEFORE THE FALL THAT WAS GIVEN TO HUMAN BEINGS DIRECTLY BY GOD IN THE SECOND CHAPTER OF GENESIS AFTER GOD HAD CREATED THE EARTH FOR MAN'S SAKE HE CREATED MAN TO TILL THE SOIL IT WAS AN EXPLICIT COMMAND TO MIX LABOR WITH GOD'S CREATION TO MAKE MORE OF THAT WHICH APPEARS IN A PURE STATE OF NATURE GOD'S COVENANT WITH ADAM REQUIRED HIM TO EXERCISE DOMINION OVER THE EARTH NO DOUBT THERE ARE RIGHT AND WRONG WAYS TO TILL AND KEEP WAYS THAT ARE MORE OR LESS PLEASING TO GOD AND THAT SHOW A GREATER OR LESSER REGARD FOR THE ESSENTIAL END FOR WHICH THE MATERIAL WORLD WAS MADE THE CAPACITY OF THE LAND TO CONTINUE TO PRODUCE SHOULD NOT BE PERMANENTLY INJURED AND ONE MUST BE CAREFUL NOT TO INFLICT UNNECESSARY PAIN ON ANY OF GOD'S CREATURES BUT THE WELLFORMED CONSCIENCE KNOWS THE DIFFERENCE IT IS NOT PART OF THE JEWISH AND CHRISTIAN UNDERSTANDING OF FAITH THAT NATURE IN ITSELF HAS AN INDEPENDENT AND METAPHYSICAL RIGHT TO BE UNTOUCHED PRESERVED AND ADORED IT IS GOD NOT GAIA WHOM WE WILL FACE ON JUDGMENT DAY PAULIST FATHER SIRICO IS PRESIDENT OF THE ACTON INSTITUTE FOR THE STUDY OF RELIGION AND LIBERTY IN GRAND RAPIDS MICH SEE RELATED LETTERS LETTERS TO THE EDITOR HEAVEN AND EARTH DAY WSJ MAY 6 1994 9404220091 YY94 MM05 9405060003 940427 LEISURE & ARTS THEATER BRITISH WIT BY THE POTOMAC BY EDWIN WILSON WASHINGTON DC NO ENGLISHSPEAKING PLAYWRIGHT ENJOYS THEATER MORE THAN ALAN AYCKBOURN THIS IS OBVIOUS NOT ONLY IN HIS PRODIGIOUS OUTPUT BUT IN HIS DEEP INVOLVEMENT IN THE MAKING OF THEATER THE AUTHOR OF 45 PLAYS OVER 20 OF WHICH HAVE BEEN PRODUCED IN LONDON'S WEST END OR AT THE ROYAL NATIONAL THEATRE HE HAS SINCE 1971 BEEN THE HEAD OF A THEATER IN SCARBOROUGH WHERE HE DIRECTS AND ALL OF HIS PLAYS ARE FIRST TRIED OUT HIS EARLIEST WORKS WERE MARKED BY HIS UNMISTAKABLE COMIC GIFT AND ALSO BY HIS EXPERIMENTATION WITH DRAMATIC STRUCTURE HE WOULD SHOW US WHAT WAS HAPPENING SIMULTANEOUSLY IN SEVERAL ROOMS OR HAVE TWO PLAYS GOING ON AT THE SAME TIME IN ONE ROOM HIS RECENT WORK WHICH HAS BECOME MORE SERIOUS OFTEN EXPLORES THE DARKER SIDE OF PERSONAL RELATIONSHIPS AND BUSINESS ENTERPRISES IN HIS LATEST PLAY TO REACH OUR SHORES THE REVENGERS' COMEDIES HE RETURNS TO A MORE PURELY COMIC VEIN A COMBINATION MURDER MYSTERY REVENGE PLAY AND FARCE THE PIECE TRACES ITS ORIGINS TO SEVERAL EARLIER WORKS THE REVENGER'S TRAGEDY BY CYRIL TOURNEUR PUBLISHED IN 1607 WAS ONE OF THE BLOODIEST AND MOST VIOLENT OF THE JACOBEAN REVENGE PLAYS MR AYCKBOURN HAS PLAYED OFF THE TITLE OF THAT DRAMA AND RETAINED THE REVENGE MOTIF BUT HAS TURNED IT INSIDE OUT TO EMPHASIZE COMEDY RATHER THAN TRAGEDY THE PLOT OF THE REVENGERS' COMEDIES DERIVES FROM STRANGERS ON A TRAIN A NOVEL BY PATRICIA HIGHSMITH WHICH IN TURN WAS THE BASIS FOR ALFRED HITCHCOCK'S FILM OF THE SAME NAME THE REVENGERS' COMEDIES EXTENDS OVER 43 SCENES AND TWO WHOLE PLAYS SIX HOURS OF INVENTIVE COMIC TOMFOOLERY THE PLAY BEGINS ON THE ALBERT BRIDGE IN LONDON HENRY BELL RALPH COSHAM A MILDMANNERED MAN WHO HAS JUST BEEN FIRED FROM HIS JOB MADE REDUNDANT IS THE BRITISH EUPHEMISM IS THERE TO COMMIT SUICIDE SO ALSO IT APPEARS IS KAREN KNIGHTLY ELLEN KARAS WHO HE DISCOVERS HANGING OVER THE EDGE OF THE BRIDGE AND WHOM HE RESCUES KAREN SWEEPS HENRY OFF FOR A CUP OF TEA AND BEGINS THE PLOTTING THAT WILL TAKE US THROUGH THE SIXHOUR SAGA HENRY'S BETE NOIRE IS BRUCE TICK DAVID MARKS THE OVERWEIGHT CRETIN WHO ACED HIM OUT OF HIS JOB KAREN SEES HER MORTAL ENEMY AS IMOGEN STAXTONBILLING TANA HICKEN THE WIFE OF THE MAN WITH WHOM SHE WAS HAVING AN AFFAIR UNTIL IMOGEN RECLAIMED HIM FOR HERSELF AND HER CHILDREN THE SCHEME HATCHED BY KAREN IS THAT SHE WILL TORMENT BRUCE TICK AND HENRY WILL DO THE SAME TO IMOGEN IN OTHER WORDS THEY WILL TRADE REVENGES AND BECAUSE BOTH WOULD BE UNLIKELY SUSPECTS THEY WILL PROBABLY GET AWAY SCOTFREE KAREN HAS TAKEN HENRY TO HER FAMILY'S BARONIAL COUNTRY ESTATE A 58ROOM MANSION WITH 25 BEDROOMS DESPITE KAREN'S ENTICEMENTS SEXUAL AND OTHERWISE HENRY IS RELUCTANT TO GO ALONG WITH THE SCHEME BUT IN HIS FIRST ENCOUNTER WITH IMOGEN SHE IS EXTREMELY RUDE TO HIM SO HE AGREES THROUGH THE BALANCE OF THE PLAY THE ACTION ALTERNATES BETWEEN THE OFFICES OF THE LONDON CONGLOMERATE WHERE HENRY HAD WORKED AND THE COUNTRY ESTATE OF KAREN'S FAMILY WHERE HENRY IS SUPPOSED TO BE FULFILLING HIS PART OF THE BARGAIN KAREN WHO TURNS OUT TO BE IMMENSELY IMAGINATIVE AND ALSO A GENUINE WITCH GOES AT HER TASK WITH A VENGEANCE SHE MANAGES TO BECOME BRUCE TICK'S SECRETARY TORMENTS HIM ENDLESSLY BREAKS UP HIS MARRIAGE AND STANDS BY SMILING WHEN HE SUCCUMBS TO A HEART ATTACK IN A WINE BAR MEANWHILE HENRY'S PART IN THE PLAN HAS TAKEN AN UNEXPECTED TWIST IN HIS SECOND MEETING WITH IMOGEN HE FALLS IN LOVE WITH HER WHEN LATER IN THE PLAY KAREN DISCOVERS THAT HENRY IS NOT KEEPING HIS END OF THE AGREEMENT SHE TURNS HER REVENGE ON HIM AT THE SAME TIME SHE HAS NOT GIVEN UP ON HER WORK AT THE CONGLOMERATE HAVING HAD A TASTE OF THE MACHIAVELLIAN POLITICS OF THE CORPORATE WORLD SHE PROCEEDS TO ELIMINATE ONE EXECUTIVE AFTER ANOTHER UNTIL SHE TAKES OVER THE WHOLE ENTERPRISE ALONG WITH THE CHIEF CHARACTERS EXCEPTIONALLY WELL PLAYED BY MS KARAS MR COSHAM AND MS HICKEN MR AYCKBOURN HAS PEOPLED HIS PLAY WITH INDIVIDUALS FAMILIAR TO BRITISH MYSTERY BUFFS A DOTTY COLONEL RICHARD BAUER A DOMINEERING HOUSEKEEPER JUNE HANSEN IMOGEN'S INSUFFERABLE HUSBAND HENRY STROZIER AND KAREN'S CHARMING BUT COMPLETELY USELESS BROTHER RAINN WILSON THERE IS ALSO A YOUNG MAID JENNIFER MENDENHALL WHO SEEMS WOEFULLY SHORT ON MENTAL EQUIPMENT A SCENE IN WHICH SHE SERVES CORNFLAKES TO HENRY FROM A SILVER BOWL A FEW FLAKES AT A TIME MAY BE THE FUNNIEST SCENE EVER PERFORMED INVOLVING A BREAKFAST CEREAL EXCEPT FOR ONE PRODUCTION IN SEATTLE IN 1992 THE CURRENT PRESENTATION AT THE ARENA STAGE IS THE PLAY'S PREMIERE IN THE US IT IS HARD TO IMAGINE THE PLAYWRIGHT BEING BETTER SERVED THAN HE HAS BEEN BY DIRECTOR DOUGLAS C WAGER AND THE CAST AT ARENA MR AYCKBOURN'S THEATER IN SCARBOROUGH IS IN THE ROUND AND SO HE WROTE THE PLAY WITH THAT STAGE CONFIGURATION IN MIND IT PROBABLY HELPS THAT ARENA TOO IS THE SAME TYPE OF STAGE AND MR WAGER NO DOUBT LIKE MR AYCKBOURN ON HIS HOME TURF KEEPS THE ACTION MOVING SWIFTLY FROM SCENE TO SCENE MR WAGER AND HIS PERFORMERS HAVE STRUCK JUST THE RIGHT NOTE AS WELL WHEN IT COMES TO THE FARCICAL ELEMENTS IN THE PLAY EVERYONE IS JUST FAR ENOUGH OFFCENTER TO CARRY OFF THE ABSURDITY OF THE PIECE WITH CONVICTION BUT ALSO TREMENDOUS BRIO ACROSS TOWN AT THE LANSBURGH THE SHAKESPEARE THEATRE IS PRESENTING ANOTHER COMEDY GEORGE BERNARD SHAW'S THE DOCTOR'S DILEMMA WHERE MR AYCKBOURN PRESENTS ACTION HOWEVER SHAW HAS HIS CHARACTERS ENGAGE IN ENDLESS DEBATE AN EXPERT CAST WHICH DELIVERS A POLISHED PERFORMANCE UNDER THE DIRECTION OF MICHAEL KAHN LABORS IN VAIN THOUGH FLASHES OF SHAVIAN WIT SHINE THROUGH THIS REMAINS UNCHARACTERISTICALLY FOR SHAW A MUDDLED WORK SIR COLENSO RIDGEON BRIAN MURRAY A DOCTOR WHO HAS DISCOVERED A CURE FOR TUBERCULOSIS CAN ADMINISTER HIS CURE TO ONLY ONE PERSON EITHER AN AMORAL SCOUNDREL WHO IS ALSO A TALENTED PAINTER DEREK SMITH OR A NONDESCRIPT BUT DECENT DOCTOR PHILIP GOODWIN THIS DILEMMA HOWEVER IS RENDERED MOOT WHEN RIDGEON FALLS IN LOVE WITH THE PAINTER'S WIFE HAVILAND MORRIS IF HE LETS THE PAINTER DIE IT MAY BE FOR THE WRONG REASON THUS WHAT SHOULD BE AN INTERESTING ETHICAL DEBATE ABOUT ART MORALITY AND THE RESPONSIBILITIES OF MEDICINE BECOMES THOROUGHLY COMPROMISED AND CONFUSED SEE RELATED LETTER LETTERS TO THE EDITOR ANOTHER OPENING ANOTHER PREMIERE WSJ MAY 6 1994 9404270049 YY94 MM05 9405060195 940324 SMOKE & MIRRORS EPA WAGES WAR ON CIGARETTES BY JACOB SULLUM SMOKING IS EVERYWHERE UNDER ATTACK THIS WEEK A HOUSE SUBCOMMITTEE CONSIDERED THE SMOKEFREE ENVIRONMENT ACT WHICH WOULD BAN SMOKING IN ALMOST ALL INDOOR LOCATIONS EXCEPT RESIDENCES NEW YORK IS POISED TO JOIN MANY OTHER CITIES ACROSS THE COUNTRY INCLUDING LOS ANGELES AND SAN FRANCISCO THAT HAVE RECENTLY ENACTED SWEEPING RESTRICTIONS ON SMOKING IN THE PAST YEAR VERMONT MARYLAND AND WASHINGTON STATE HAVE ALSO ADOPTED SMOKING BANS AS HAVE MAJOR PUBLIC EMPLOYERS INCLUDING THE DEFENSE DEPARTMENT THIS FLURRY OF ANTISMOKING ACTIVITY IS DRIVEN LARGELY BY A 1993 REPORT FROM THE ENVIRONMENTAL PROTECTION AGENCY THAT DECLARED ENVIRONMENTAL TOBACCO SMOKE ETS TO BE A KNOWN HUMAN LUNG CARCINOGEN TESTIFYING IN FAVOR OF THE SMOKEFREE ENVIRONMENT ACT LAST MONTH EPA ADMINISTRATOR CAROL BROWNER NOTED THAT IN THE YEAR SINCE PUBLICATION OF THE EPA REPORT WE HAVE SEEN A RAPID ACCELERATION OF MEASURES TO PROTECT NONSMOKERS IN A VARIETY OF SETTINGS MOST SUPPORTERS OF SUCH MEASURES PROBABLY BELIEVE THAT THE EPA REPORT PRESENTS DEFINITIVE SCIENTIFIC EVIDENCE THAT EXPOSURE TO ETS CAUSES LUNG CANCER BUT THOSE WHO HAVE TAKEN A CLOSER LOOK HAVE COME TO BELIEVE THAT THE EPA TWISTED THE EVIDENCE TO ARRIVE AT A PREDETERMINED CONCLUSION THE OVERRIDING MOTIVE WAS TO DISCOURAGE SMOKING BY MAKING IT LESS ACCEPTABLE AND MORE INCONVENIENT INDEED THE MAIN BENEFIT THAT MS BROWNER CLAIMS FOR THE SMOKEFREE ENVIRONMENT ACT IS ITS EXPECTED IMPACT ON SMOKERS YET COERCING PEOPLE FOR THEIR OWN GOOD STILL RAISES A FEW HACKLES IN THIS COUNTRY SO PATERNALISTS NEED TO OFFER SOME ADDITIONAL JUSTIFICATION THAT'S WHY THEY'VE BEEN PUSHING THE IDEA THAT SMOKING ENDANGERS INNOCENT BYSTANDERS THE PROBLEM IS THE EVIDENCE FOR THIS CLAIM IS WEAK INCONSISTENT AND AMBIGUOUS THE EPA'S REPORT SEEMS DESIGNED TO CONCEAL THAT PROBLEM THE AGENCY'S MOST BLATANT TRICK IS TO USE AN UNCONVENTIONAL DEFINITION OF STATISTICAL SIGNIFICANCE EPIDEMIOLOGISTS GENERALLY CALL AN ASSOCIATION BETWEEN A RISK FACTOR AND A DISEASE SIGNIFICANT IF THE PROBABILITY THAT IT OCCURRED PURELY BY CHANCE IS 5 OR LESS THIS IS ALSO THE STANDARD THAT THE EPA HAD ALWAYS USED FOR RISK ASSESSMENT YET FOR THE REPORT ON ETS THE AGENCY ABANDONED THE USUAL DEFINITION AND CALLED A RESULT SIGNIFICANT IF THE PROBABILITY THAT IT OCCURRED BY CHANCE WAS 10 OR LESS THIS CHANGE IN EFFECT DOUBLES THE ODDS OF BEING WRONG EVEN ACCORDING TO THE BROADER DEFINITION ONLY ONE OF THE 11 US STUDIES THAT THE REPORT ANALYZES FOUND A STATISTICALLY SIGNIFICANT LINK BETWEEN ETS AND LUNG CANCER ACCORDING TO THE USUAL DEFINITION NONE OF THEM DID TO BOLSTER THE EVIDENCE THE EPA COMBINED DATA FROM THESE 11 SOURCES INTO A METAANALYSIS A TECHNIQUE ORIGINALLY INTENDED FOR RANDOMIZED CLINICAL TRIALS UCLA EPIDEMIOLOGIST JAMES ENSTROM SAYS USING METAANALYSIS WITH RETROSPECTIVE CASECONTROL STUDIES SUCH AS THOSE EXAMINED BY THE EPA IS FRAUGHT WITH DANGERS BECAUSE THE STUDIES ARE APT TO DIFFER IN THE WAY THEY DEFINE SMOKERS THE TYPES OF LUNG CANCER THEY INCLUDE AND THE CONFOUNDING VARIABLES THEY CONSIDER AND SO ON IN ANY EVENT THE EPA'S CONCLUSION THAT BEING MARRIED TO A SMOKER RAISES A WOMAN'S CHANCE OF GETTING LUNG CANCER BY ABOUT 19 IS JUSTIFIED ONLY ACCORDING TO THE LOOSER DEFINITION OF STATISTICAL SIGNIFICANCE CHOSEN ESPECIALLY FOR THESE DATA BY THE CONVENTIONAL STANDARD THE METAANALYSIS DOES NOT SUPPORT THE CLAIM THAT ETS CAUSES LUNG CANCER FURTHERMORE THE EPA EXCLUDED FROM ITS ANALYSIS A LARGE US STUDY PUBLISHED IN THE NOVEMBER 1992 AMERICAN JOURNAL OF PUBLIC HEALTH THAT DID NOT FIND A STATISTICALLY SIGNIFICANT LINK BETWEEN ETS AND LUNG CANCER HAD THIS STUDY BEEN INCLUDED THE METAANALYSIS MIGHT NOT HAVE YIELDED A SIGNIFICANT RESULT EVEN BY THE RELAXED STANDARD DESPITE WHAT A JULY 1992 ARTICLE IN SCIENCE DESCRIBED AS FANCY STATISTICAL FOOTWORK THE EPA WAS ABLE TO CLAIM ONLY A WEAK ASSOCIATION BETWEEN ETS AND LUNG CANCER WITH A RISK INCREASE AS LOW AS 19 IT IS VERY DIFFICULT TO RULE OUT THE POSSIBILITY THAT THE ASSOCIATION IS DUE TO OTHER FACTORS IN 1991 GARY HUBER PROFESSOR OF MEDICINE AT THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AND TWO COLLEAGUES EXAMINED THE 30 ETS STUDIES DISCUSSED BY THE EPA IN ITS REPORT AT LEAST 20 CONFOUNDING VARIABLES HAVE BEEN IDENTIFIED AS IMPORTANT TO THE DEVELOPMENT OF LUNG CANCER THEY WROTE IN CONSUMERS' RESEARCH NO REPORTED STUDY COMES ANYWHERE CLOSE TO CONTROLLING OR EVEN MENTIONING HALF OF THESE FURTHERMORE TO COME UP WITH ITS ESTIMATE OF 3000 ADDITIONAL CANCER DEATHS A YEAR MORE THAN TWOTHIRDS OF WHICH ARE SUPPOSEDLY DUE TO EXPOSURE OUTSIDE THE HOME THE EPA RELIED ON SEVERAL CONTROVERSIAL ASSUMPTIONS IT ASSUMED THAT COTININE A NICOTINE METABOLITE IS A RELIABLE MEASURE OF ETS EXPOSURE YET NICOTINE IS PRESENT IN A NUMBER OF FOODS AND THE REPORT ITSELF CONCEDES THAT COTININE IS NOT AN IDEAL BIOMARKER FOR ETS THE EPA ALSO ASSUMED THAT LUNGCANCER RISK IS DIRECTLY PROPORTIONAL TO ETS LEVELS AND THAT NO LEVEL OF ETS CAN BE CONSIDERED SAFE YET DOSERESPONSE RELATIONSHIPS VARY FROM ONE SUBSTANCE TO ANOTHER AND MANY SCIENTISTS BELIEVE THAT A CARCINOGEN HAS TO BE PRESENT AT A CERTAIN LEVEL BEFORE IT CAN DO ANY HARM GIVEN THESE AND OTHER CONTRIVANCES EMPLOYED BY THE EPA IT IS DIFFICULT TO AVOID THE CONCLUSION THAT POLICY HAS DICTATED SCIENCE IN THE CASE OF ETS THIS APPROACH MAY BE POLITICALLY EFFECTIVE IN THE SHORT TERM BUT IT IS ULTIMATELY SELFDEFEATING BY COMPROMISING THE STANDARDS AND METHODS OF SCIENCE THE EXPERTS ALSO UNDERMINE THEIR CLAIM TO AUTHORITY MR SULLUM IS MANAGING EDITOR OF REASON MAGAZINE SEE RELATED LETTER LETTERS TO THE EDITOR WHERE'S THERE SMOKE THERE'S LUNG CANCER WSJ MAY 6 1994 9403240008 YY94 MM05 9405050159 940421 LETTERS TO THE EDITOR AN OLD FOGEY NOT ON THIS COURT MY BOOK THE MISUNDERSTOOD ECONOMY WHAT COUNTS AND HOW TO COUNT IT MUST HAVE STRUCK A RAW NERVE IN YOUR REVIEWER SUSAN LEE A RANDOM STROLL DOWN MEMORY LANE LEISURE & ARTS APRIL 8 I'LL PASS OVER MS LEE'S AD HOMINEM ATTACKS EISNER HAS A BAD CASE OF DENIAL AND IS THE WORST KIND OF OLD FOGEY AND TURN TO THE SUBSTANCE OF HER COMPLAINT THAT I REOPEN DEBATES THAT HAVE LONG BEEN SETTLED MS LEE PAYS BRIEF TRIBUTE TO MY DISCUSSION OF FEDERAL ACCOUNTING AND NEEDS TO IMPROVE IT THAT DEBATE IS CERTAINLY CONTINUING INDEED EXPANDING MICHAEL BOSKIN PRESIDENT BUSH'S CHAIRMAN OF THE COUNCIL OF ECONOMIC ADVISERS WRITES ROBERT EISNER PROVOCATIVELY EXPOSES HOW MISLEADING INACCURATE OR INCOMPLETE ARE MUCH OF THE ECONOMIC DATA USED TO DESCRIBE THE ECONOMY AND TO PRESCRIBE POLICY NOR IS THE DEBATE OVER ON MY CHALLENGE TO THE CONVENTIONAL WISDOM ON BUDGET DEFICITS ROBERT BARTLEY EDITOR OF THE JOURNAL HAS DISCUSSED MY ARGUMENTS FAVORABLY IN YOUR COLUMNS AND IN HIS MOST RECENT BOOK MANY INCLUDING MONETARISTS AND SUPPORTERS OF THE VIEWS OF HARVARD'S ROBERT BARRO ONE OF YOUR REGULAR CONTRIBUTORS ALSO CHALLENGE THAT WISDOM ARGUING THAT DEFICITS DO NOT MATTER MY OWN ANALYSIS SUPPORTED BY MOST ECONOMISTS INDICATES THAT DEFICITS APPLIED AT THE RIGHT TIME CAN BE AN EFFECTIVE STIMULUS TO THE ECONOMY YOUR REVIEWER RIDICULES MY ARGUMENTS THAT MODERATE INFLATION IS NOT DANGEROUS AND THAT WE SHOULD NOT BE FRIGHTENED BY THE BUGABOO OF INFLATION BUT MOST ECONOMIST ARE AGREED THAT THE COSTS OF MODERATE INFLATION ARE MINIMAL AND MOST PEOPLE IN THE BUSINESS WORLD MUST FEEL SOME QUALMS ABOUT ALAN GREENSPAN'S PEREMPTORY STRIKE AGAINST AN INFLATION THAT HE ALONE SEES UNDER THE BED A STRIKE THAT HAS SHOCKED BOND STOCK AND HOUSING MARKETS AND MAY WELL CURB ECONOMIC RECOVERY MS LEE IN DISCUSSING MY TREATMENT OF SOCIAL SECURITY MYTHS AND HELPING BABY AND GRANDMA ACCUSES ME OF LACK OF CONCERN THAT FOR EVERY 1 SPENT ON CHILDREN 14 GOES TO SENIORS HER MISTAKEN FIGURES NOT MINE BUT THEN SHE OBJECTS TO MY ADVOCACY OF MORE MONEY FOR PRENATAL CARE CHILD CARE EDUCATION JOB TRAINING AND OF COURSE THE ENVIRONMENT IN WHICH OUR CHILDREN WILL LIVE IF SUCH EXPENDITURES ARE TO BE FINANCED BY DEBT BUSINESSES AND HOUSEHOLDS BORROW ALL THE TIME TO FINANCE INVESTMENT BUT MS LEE'S GREATEST QUARREL IS WITH MY CHARGE THAT THE DOCTRINE OF A NATURAL RATE OF UNEMPLOYMENT EMBODIES THE GREATEST MISCONCEPTION OF ALL THERE IS NOTHING NATURAL ABOUT 65 UNEMPLOYMENT IN THE US AND UNEMPLOYMENT HAS ON A NUMBER OF OCCASIONS MOST RECENTLY 198890 BEEN BELOW MOST BELIEVERS' NATURAL RATES WITH NO EVIDENCE OF ACCELERATING INFLATION IF GOD THOUGHT A CERTAIN AMOUNT OF UNEMPLOYMENT NATURAL HE STRANGELY TREATED HIS VARIOUS CHILDREN DIFFERENTLY JAPAN HAS AN UNEMPLOYMENT RATE OF 3 AND VIRTUALLY NO INFLATION WESTERN EUROPE HAS STAGNATED WITH DOUBLEDIGIT UNEMPLOYMENT AND NO EVIDENCE OF THE ACCELERATING DEFLATION CALLED FOR BY THE NATURALRATE DOGMA INDEED NEW CHALLENGES TO BASIC ASSUMPTIONS ABOUT THE NATURAL RATE HAVE BEEN SPARKING AN EVER WIDER DEBATE LAWRENCE SUMMERS AND OLIVIER BLANCHARD NO OLD FOGIES HAVE SET FORTH THE CONCEPT OF HYSTERESIS ACCORDING TO WHICH HIGH RATES OF UNEMPLOYMENT WHICH MAY BE BROUGHT ON BY MISGUIDED ANTIINFLATIONARY ACTIONS MAY PROVE SELFSUSTAINING AND OTHER ECONOMISTS CITED IN MY BOOK HAVE RECENTLY IN FUNDAMENTAL THEORETICAL ARTICLES CHALLENGED THE BASIS NOTION OF ANY UNIQUE NATURAL RATE OF UNEMPLOYMENT THE DOGMA OF THE NATURAL RATE IN FACT GOES BACK A LONG WAY TO KARL MARX WHO INSISTED THAT A RESERVE ARMY OF THE UNEMPLOYED WAS ESSENTIAL TO KEEPING WAGES FROM RISING AND EATING AWAY PROFITS AND THUS ESSENTIAL TO THE SURVIVAL OF CAPITALISM AS FOR THAT OLD FOGEY CHARGE THE WORST KIND NO LESS I CHALLENGE MS LEE TO A SET OF TENNIS OR INVITE READERS OF MY BOOK TO DECIDE FOR THEMSELVES SEE RELATED LETTER LETTERS TO THE EDITOR GOD MARX AND THE NATURAL RATE' WSJ MAY 5 1994 9404210092 YY94 MM05 9405050018 940421 FIRMS FORFEIT TAX BREAK TO PAY TOP BRASS 1 MILLIONPLUS BY JOANN S LUBLIN STAFF REPORTER OF THE WALL STREET JOURNAL MANY BIG BUSINESSES HAVE DECIDED TO DO THE UNTHINKABLE FORGO A TAX BREAK SO THEY CAN PAY THEIR EXECUTIVES AS MUCH AS THEY WANT HOWEVER THEY WANT THE BREAK STEMS FROM THE NEW TAX LAW THAT TOOK EFFECT JAN 1 AND THAT GENERALLY BARS PUBLICLY HELD CORPORATIONS FROM DEDUCTING A TOP OFFICER'S COMPENSATION IN EXCESS OF 1 MILLION A YEAR UNDER REGULATIONS DRAFTED BY THE INTERNAL REVENUE SERVICE THAT EXCESS WOULD BE DEDUCTIBLE IF THE EXECUTIVE'S PAY IS BASED ON OBJECTIVE PERFORMANCE GOALS DRAFTED BY INDEPENDENT DIRECTORS AND CLEARED AT THE COMPANY'S ANNUAL MEETING BUT RATHER THAN SEEK SHAREHOLDERS' BLESSING FOR A CERTAIN PAY PLAN OR HOLD SENIOREXECUTIVE PAY AT 1 MILLION ABOUT A THIRD OF 91 BIG COMPANIES WILL PAY WHAT THEY WANT AND DO WITHOUT THE DEDUCTION CONCLUDES AN ANALYSIS OF 1994 PROXY STATEMENTS BY CONSULTANTS PEARL MEYER & PARTNERS INC THE NUMBER IS MANY MORE THAN WE ANTICIPATED SAYS RHODA EDELMAN A PARTNER AT THE NEW YORK FIRM IT IS CORPORATE AMERICA'S WAY OF FIGHTING BACK AT GOVERNMENT REGULATION THEY WANT THE FREEDOM TO RUN THEIR BUSINESSES BEFORE THE NEW TAX LAW COMPANIES COULD DEDUCT EXORBITANT EXECUTIVE PAY WITHOUT CONSULTING ANYONE SOME COMPANIES ARE GETTING AROUND THE MILLIONDOLLAR DEDUCTION CAP BY HAVING EXECUTIVES DEFER SOME PAY UNTIL THEY RETIRE BUT OTHERS WILL FORFEIT THE DEDUCTION USUALLY BECAUSE THEY OPPOSE GIVING OUTSIDERS A GREATER VOICE IN EXECUTIVEPAY DECISIONS AMONG THEM EASTMAN KODAK CO SCHLUMBERGER LTD GILLETTE CO MOTOROLA INC FIRST CHICAGO CORP MARTIN MARIETTA CORP AND KELLOGG CO AT KELLOGG ARNOLD G LANGBO CHAIRMAN AND CHIEF EXECUTIVE OFFICER WAS PAID A SALARY AND BONUS OF ABOUT 13 MILLION IN 1993 A SPOKESMAN FOR THE BATTLE CREEK MICH CEREAL MAKER DECLINES TO DISCUSS THE DECISION OF THE KELLOGG BOARD'S COMPENSATION COMMITTEE NOT TO ALTER THE COMPANY'S PAY PLANS TO GET THE DEDUCTION GILLETTE DIRECTORS HOWEVER MAKE IT PERFECTLY CLEAR WHY THEY ARE RELINQUISHING THE EXECUTIVEPAY DEDUCTION THEY WANT TO PRESERVE THEIR INDEPENDENT BUSINESS JUDGMENT CHANGING THE BOSTON COMPANY'S ANNUAL BONUS PLAN WOULD SERIOUSLY IMPEDE THE COMPENSATION COMMITTEE'S ABILITY TO ADMINISTER THE PLAN THE PANEL SAYS IN ITS PROXYSTATEMENT REPORT UNDER REGULATIONS DRAFTED BY THE IRS AN EXECUTIVE'S ANNUAL BONUS WOULD BE EXEMPT FROM THE MILLIONDOLLAR DEDUCTION CAP IF IT DEPENDS ON MEETING OBJECTIVE PERFORMANCE TESTS APPROVED BY STOCKHOLDERS THE GILLETTE BONUS PLAN WAS DELIBERATELY DESIGNED SO THAT INDIVIDUAL AWARDS WERE NOT TO BE DEPENDENT SOLELY ON OBJECTIVE OR NUMERICAL CRITERIA THE PROXY NOTES BY DECIDING TO DO WITHOUT THE TAX BREAK GILLETTE'S BOARD ACTED IN THE BEST INTERESTS OF SHAREHOLDERS SAYS JOHN MCGOWAN A GILLETTE VICE PRESIDENT BUT LET'S FACE IT THE AMOUNT OF THE DEDUCTION LOST ISN'T SIGNIFICANT ALFRED M ZEIEN GILLETTE'S CHAIRMAN AND CEO MADE ABOUT 16 MILLION IN SALARY AND BONUS LAST YEAR MR MCGOWAN ESTIMATES THAT FORSAKING THE DEDUCTION ON THE PORTION OVER 1 MILLION WILL COST THE COMPANY ABOUT 233000 THIS YEAR A TINY ADDITION TO THE 887 MILLION IT PAID THE FEDERAL GOVERNMENT IN 1993 INDEED FOR MOST CORPORATE GIANTS THE DEDUCTION IS PEANUTS THE MINIMAL SUMS INVOLVED FAR OUTWEIGH THE NEED FOR DIRECTORS TO USE THEIR DISCRETION SEVERAL MAJOR COMPANIES CONTEND IN THEIR PROXIES XEROX CORP PROBABLY WILL LOSE LESS THAN 150000 BY GIVING UP THE TAX BREAK IN 1994 SAYS LARRY ROBINSON DIRECTOR OF CORPORATE COMPENSATION AT THE STAMFORD CONN CONCERN ON THE OTHER HAND HE POINTS OUT A RIGID BONUS FORMULA CAN HAMSTRING HOW YOU PAY YOUR EXECUTIVES IN A RAPIDLY CHANGING GLOBAL MARKET STILL IGNORING PRESIDENT CLINTON'S EFFORT TO RESTRAIN EXCESSIVE EXECUTIVE PAY A HOPEDFOR RESULT OF THE NEW TAX LAW COULD HURT BUSINESSES' PUBLIC RELATIONS MORE THAN THEIR TAX BILLS AT POORLY PERFORMING COMPANIES THE FORGONE TAX BREAK IS GOING TO BE ANOTHER THING THAT INVESTORS WILL THROW OUT AT MANAGEMENT SUGGESTS SAMUEL BERGER A PRINCIPAL OF ACCOUNTANTS PRICE WATERHOUSE IN NEW YORK SOME OBSERVERS BELIEVE THAT COULD HAPPEN AT KODAK THE PHOTOGRAPHY AND HEALTHCARE COMPANY BURDENED BY INCREASED COMPETITION AND SLOWER GROWTH IN ITS CORE FILM BUSINESS A GENEROUS PAY PACKAGE HELPED PERSUADE GEORGE M FISCHER TO QUIT THE NO 1 JOB AT MOTOROLA AND TAKE KODAK'S HELM IN DECEMBER BESIDES A 5 MILLION SIGNON BONUS A RESTRICTED STOCK GRANT WORTH 13 MILLION AND OPTIONS TO BUY 13 MILLION SHARES MR FISCHER GETS A 2 MILLION SALARY AND A GUARANTEED MINIMUM BONUS OF 1 MILLION THIS YEAR AND NEXT KODAK BASED IN ROCHESTER NY SAYS IT WILL GIVE UP THE DEDUCTION ON THE EXCESS PORTION OF MR FISCHER'S 1994 SALARY AT A COST OF BETWEEN 400000 AND 430000 THE EXECUTIVE'S GUARANTEED BONUS WON'T COUNT TOWARD THE MILLIONDOLLAR DEDUCTIBILITY LIMIT UNTIL 1995 WHEN HE ACTUALLY RECEIVES THIS YEAR'S AWARD KODAK DIRECTORS COULD HAVE SAVED THE DEDUCTION BY ASKING MR FISCHER TO DEFER SOME PAY UNTIL HE LEAVES FOLLOWING THE EXAMPLE RECENTLY SET BY THE HEADS OF WEYERHAUESER CO COASTAL CORP AND SEARS ROEBUCK & CO IT WAS NOT A ROUTE THAT THE COMPENSATION COMMITTEE WANTED TO TAKE THEY JUST DIDN'T FEEL IT WAS APPROPRIATE TO ASK HIM TO DO THAT RECALLS JERRY FRANCIS DIRECTOR OF EXECUTIVE COMPENSATION BUT SOME INSTITUTIONAL SHAREHOLDERS MAY REJECT KODAK'S EXPLANATION IT'S NOT A GOOD TIME IN KODAK'S CORPORATE LIFE CYCLE TO BE COCKY SAYS GARY LYONS A VICE PRESIDENT OF INSTITUTIONAL SHAREHOLDER SERVICES INC A PROXYADVISORY CONCERN IN BETHESDA MD KODAK REPORTED A 1993 LOSS OF 152 BILLION IN REVIEWING 1994 PROXY STATEMENTS MR LYONS SAYS HE HAS SO FAR IDENTIFIED 37 MAJOR CORPORATIONS THAT WILL DO WITHOUT THE DEDUCTION AND EMPLOY AT LEAST ONE SENIOR OFFICER WHOSE SALARY AND BONUS SURPASSED 1 MILLION IN 1993 THE DECISION HE SAYS COULD DRAW A SHAREHOLDERS' LAWSUIT AND MAKE A VERY POOR MOTIVATIONAL STATEMENT TO YOUR EMPLOYEES WORRIES ABOUT A DAMAGED CORPORATE IMAGE AS WELL AS THE EXPECTED ISSUANCE OF FINAL FEDERAL RULES MAY PROMPT CERTAIN HOLDOUTS TO REVERSE COURSE AND SEEK THE DEDUCTION IN 1995 FOR INSTANCE KODAK'S CURRENT POSITION WILL COST THE COMPANY BETWEEN 800000 AND 860000 IN TAX BREAKS NEXT YEAR WE COULD HAVE A DIFFERENT SCENARIO BY THEN MR FRANCIS PREDICTS XEROX WILL REEVALUATE ITS STANCE NEXT YEAR WHEN WE THINK THE REGULATIONS WILL BE MORE SPECIFIC SAYS MR ROBINSON OTHER CONCERNS ARE URGING THE IRS TO LOOSEN ITS PERFORMANCEGOAL REQUIREMENTS THE AGENCY HOLDS HEARINGS MAY 9 ON THE PROPOSED RULES WE ARE CLEARLY IN A POPULIST ERA WHERE TOSSING ASIDE AN EXECUTIVEPAY TAX BREAK IS A LOSER WARNS MICHAEL DAVIS HEAD OF THE US EXECUTIVECOMPENSATION PRACTICE FOR CONSULTANTS TOWERS PERRIN IN CHICAGO ONCE YOU SEE WHERE THE HERD IS GOING HE ADDS IT WILL BECOME AWFULLY HARD TO BUCK IT EASTMAN KODAK CO'S 1993 NET LOSS OF 152 BILLION RESULTED FROM CHANGES IN ACCOUNTING METHODS A MARKETPLACE ARTICLE APRIL 21 ABOUT COMPANIES' FORFEITING TAX DEDUCTIONS ON CHIEF EXECUTIVES' PAY FAILED TO GIVE THE REASON FOR THE LOSS 9405050085 940331 INTERNATIONAL WHILE US SCRUTINIZES CHINA'S RECORD RIGHTS ABUSES ELSEWHERE ARE IGNORED BY GERALDINE BROOKS STAFF REPORTER OF THE WALL STREET JOURNAL WHEN IS A HUMANRIGHTS RECORD MORE IMPORTANT THAN AN ECONOMIC RELATIONSHIP CHINA FACING AN ANNUAL REVIEW IN JUNE OF ITS MOST FAVORED NATION TRADE STATUS RISKS BEING PENALIZED FOR A RANGE OF HUMANRIGHTS ABUSES INCLUDING POLITICAL REPRESSION IMPRISONMENT OF DISSIDENTS AND SYSTEMATIC DESTRUCTION OF THE RELIGIOUS AND CULTURAL HERITAGE OF TIBETANS BUT RIGHTS GROUPS SAY THAT SIMILAR CATALOGS OF VIOLATIONS CAN BE COMPILED FOR NATIONS THAT NEITHER FACE ANNUAL REVIEWS NOR DRAW EVEN THE MILDEST CRITICISM FROM THE CLINTON ADMINISTRATION FOR ALLEGEDLY POOR HUMANRIGHTS RECORDS WHEN PRESIDENT CLINTON LAST WEEK PLEDGED US INTERVENTION TO PROP UP MEXICO'S CURRENCY HE DIDN'T TIE THE OFFER TO AN END TO WIDESPREAD TORTURE ALLEGED IN MEXICAN PRISONS AND IN FEBRUARY WHEN THE PRESIDENT PERSONALLY INTERVENED TO WIN 6 BILLION IN AIRCRAFT SALES FROM SAUDI ARABIA HE DIDN'T MENTION THE KINGDOM'S LONGCHRONICLED DENIAL OF RELIGIOUS FREEDOM NOR ITS REFUSAL OF EQUAL RIGHTS TO WOMEN AND LAST OCTOBER WHEN HE PRAISED THE THIRDLARGEST US AID RECIPIENT TURKEY AS A SHINING EXAMPLE TO THE WORLD OF THE VIRTUES OF CULTURAL DIVERSITY HE NEGLECTED TO MENTION EVIDENCE COMPILED BY HUMANRIGHTS GROUPS OF THE BEATINGS FORCIBLE EVACUATIONS BOMBINGS DETENTION AND TORTURE OF ITS KURDISH MINORITY IF CHINA ISN'T HEARING THE US MESSAGE ON HUMAN RIGHTS SOME OF THIS BACKGROUND NOISE MIGHT BE TO BLAME GOVERNMENTS DON'T LOOK AT WHAT IS SAID BUT WHAT IS BEING DONE SAYS CURT GOERING THE DEPUTY EXECUTIVE DIRECTOR OF AMNESTY INTERNATIONAL IN THE US AND WHAT IS BEING DONE HE ADDS IS THE MAINTENANCE OF NORMAL RELATIONSHIPS WITH MANY SIGNIFICANT TRADING PARTNERS DESPITE THEIR HUMANRIGHTS LAPSES EVERY YEAR THE STATE DEPARTMENT COMPILES ITS COUNTRY REPORTS ON HUMAN RIGHTS PRACTICES A FRANK AND DETAILED WORLDWIDE SURVEY OF ABUSES BUT THE REPORTS AREN'T WIDELY AVAILABLE AND OFTEN THE VIOLATIONS CITED ARE NEVER RAISED FURTHER WITH THE GOVERNMENTS RESPONSIBLE NOR USED AS A BASIS FOR POLICY DECISIONS INSTEAD SUCCESSIVE US ADMINISTRATIONS HAVE USED HUMANRIGHTS RECORDS AS PROPS FOR POLICIES ALREADY IN PLACE ABUSES BY SUCH COUNTRIES AS IRAN ARE RARELY OUT OF THE SPOTLIGHT BUT DURING THE REAGAN ADMINISTRATION AND THE FIRST YEAR OF THE BUSH PRESIDENCY IRAQ'S EVENMORE EGREGIOUS RECORD WAS PLAYED DOWN MAINLY BECAUSE IRAQ WAS THEN A LARGE MARKET FOR US AGRICULTURAL PRODUCTS AND BECAUSE ITS MILITARY AGGRESSION AT THAT TIME HAD DAMAGED ONLY AN ENEMY IRAN WHEN AN EMBOLDENED IRAQ TURNED ON KUWAIT AN ALLY PRESIDENT BUSH WAS QUICK TO DUST OFF NEGLECTED HUMANRIGHTS REPORTS THAT ALLOWED HIM TO CHARACTERIZE SADDAM HUSSEIN AS LIKE HITLER THE CLINTON ADMINISTRATION WHILE ACKNOWLEDGING INCONGRUITIES SAYS THAT HUMAN RIGHTS ARE ALWAYS AN IMPORTANT CONSIDERATION IN TRADE POLICY BUT A SPOKESMAN SAYS DECISIONS ON WHETHER TO SANCTION OR CRITICIZE TRADE PARTNERS MUST BE MADE ON A CASEBYCASE BASIS THIS COUNTRY AND THIS GOVERNMENT HAVE TAKEN A PRINCIPLED STAND ON HUMAN RIGHTS BECAUSE IT'S SOMETHING AMERICANS CARE ABOUT SAYS A STATE DEPARTMENT OFFICIAL WHENEVER POLICY DECISIONS ARE MADE THE PRESIDENT AND THE PEOPLE WHO WORK FOR HIM HAVE TO WEIGH EACH CASE ON ITS MERITS AND HUMAN RIGHTS MONITORING GROUPS GIVE THE ADMINISTRATION CREDIT FOR TAKING A TOUGH LINE ON HUMANRIGHTS VIOLATIONS WITH SOME COUNTRIES INCLUDING NIGERIA PERU AND INDONESIA STILL OTHER ABUSES DRAW LITTLE RESPONSE LAST YEAR'S DEBATE ON THE NORTH AMERICAN FREE TRADE AGREEMENT PASSED WITH LITTLE DISCUSSION OF MEXICO'S ALLEGED HUMANRIGHTS VIOLATIONS WHICH INCLUDE HARASSMENT OF LABOR ORGANIZERS HUMANRIGHTS ORGANIZATIONS ALSO SAY THEY HAVE COMPILED EVIDENCE OF WIDESPREAD TORTURE IN MEXICAN PRISONS INCLUDING NEARASPHYXIATION WITH PLASTIC BAGS A CLINTON ADMINISTRATION OFFICIAL ACKNOWLEDGES THAT DURING THE NAFTA CRUNCH HUMAN RIGHTS WERE NOT AT THE TOP OF ANYBODY'S AGENDA BUT HE SAYS AT LEAST SOME CONCERNS ABOUT MEXICO'S HUMANRIGHTS RECORD HAVE SURFACED SINCE NAFTA'S PASSAGE SIMILARLY DESPITE CLOSE TRADE LINKS THE US FAILS TO PRESS BRAZIL ON WHAT INTERNATIONAL OBSERVERS SEE AS A WORSENING RECORD OF VIOLENT RIGHTS ABUSES LAST YEAR SAW MASS MURDERS OF STREET CHILDREN BY OFFDUTY POLICE AND MASSACRES OF YANOMAMI INDIANS BY GOLD MINERS SUCH RETICENCE IS EVEN MORE STRIKING IN COUNTRIES SUCH AS SOUTH KOREA KUWAIT AND SAUDI ARABIA WITH THEIR HEAVY RELIANCE ON US MILITARY PROTECTION SOUTH KOREA IN 1993 JAILED SOME 200 POLITICAL PRISONERS INCLUDING SOME ARRESTED FOR BREAKING RESTRICTIVE LAWS AGAINST TRADE UNIONS PRESIDENT CLINTON'S INTERVENTION TO SECURE SAUDI ARABIAN BUSINESS FOR BOEING AND MCDONNELL DOUGLAS CORP WAS ACCOMPANIED BY THE WITHDRAWAL OF HIS ADMINISTRATION'S CHOICE OF AMBASSADOR EDWARD GHNEM THE SAUDIS REPORTEDLY BALKED AT MR GHNEM BECAUSE HE HAS SPOKEN IN FAVOR OF DEMOCRATIZATION IN THE GULF IN ITS ANNUAL HUMANRIGHTS SURVEY MIDDLE EAST WATCH DESCRIBED 1993 AS A YEAR WHEN THE DISMAL HUMAN RIGHTS RECORD OF THE KINGDOM OF SAUDI ARABIA TOOK A TURN FOR THE WORSE WITH THE NUMBER OF EXECUTIONS AFTER SUMMARY TRIALS MORE THAN DOUBLING IN KUWAIT MEANWHILE 1993 US SALES OF TANKS AND FIGHTER PLANES TOPPED 1 BILLION YET RIGHTS ORGANIZATIONS SAY THE EMIRATE CONTINUED ITS POST GULFWAR POLICY OF EXPELLING PALESTINIANS AND OTHER NONCITIZENS THROUGH TACTICS SUCH AS DENIAL OF EMPLOYMENT DETENTION AND TORTURE PRISON CONDITIONS FOR THOSE TARGETED WITH EXPULSION BECAME SO BAD LAST YEAR THAT SIX DETAINEES SEWED SHUT THEIR OWN MOUTHS IN PROTEST THE US DECLINED TO PRESS ANY OF THESE ISSUES WITH KUWAIT ISRAEL AND EGYPT KEY US ALLIES AND THE TWO LARGEST US AID RECIPIENTS ALSO RARELY EXPERIENCE ANY HEAT OVER PERSISTENT RIGHTS VIOLATIONS UNDER EMERGENCY LAWS IN PLACE SINCE 1981 EGYPT HAS IMPRISONED THOUSANDS OF POLITICAL SUSPECTS WITHOUT TRIAL RIGHTS GROUPS HAVE ALSO ACCUSED ISRAEL OF ROUTINELY USING PSYCHOLOGICAL AND PHYSICAL ABUSE SUCH AS SLEEP DEPRIVATION AND EXPOSURE IN OBTAINING CONFESSIONS FROM PRISONERS MANY OF WHOM ARE DETAINED WITHOUT CHARGE OR TRIAL SEE RELATED LETTER LETTERS TO THE EDITOR INDIA'S ABUSES AGAINST MUSLIMS WSJ APRIL 29 1994 SEE RELATED LETTER LETTERS TO THE EDITOR BRAZIL WON'T TOLERATE HUMANRIGHTS ABUSES WSJ MAY 5 1994 9403310110 9404290096 YY94 MM04 YY94 MM05 9405050070 940324 REVIEW & OUTLOOK EDITORIAL THE UN GOES RETRO IF THERE WERE ANY DOUBTS THAT THE 1970S ARE BECOMING CHIC AGAIN THEY WERE ERASED RECENTLY WHEN THE UNITED NATIONS SECURITY COUNCIL PASSED A VINTAGE ISRAELBASHING RESOLUTION THE RESOLUTION CONDEMNING THE HEBRON MASSACRE IS STRAIGHT OUT OF THE OLD ZIONISMISRACISM SONG BOOK SINCE WHEN FIRST OF ALL DOES THE UN GO AROUND CONDEMNING THE ACTIONS OF PRIVATE INDIVIDUALS LAST YEAR'S MASSACRE ON THE LONG ISLAND RAIL ROAD WAS SURELY HORRIFIC AND RACIST YET SOMEHOW THE UN DIDN'T FEEL CALLED UPON TO PASS RESOLUTIONS YET BARUCH GOLDSTEIN BECOMES A CHANCE TO BASH AN ENTIRE NATION NOWHERE DOES THE RESOLUTION ACKNOWLEDGE THAT GOLDSTEIN HAS BEEN CONDEMNED ACROSS THE ISRAELI POLITICAL SPECTRUM ON THE CONTRARY THE SECURITY COUNCIL RESOLUTION STUDIOUSLY LUMPS TOGETHER GOLDSTEIN AND THE ISRAELI GOVERNMENT THE RESOLUTION THEN TRIES TO BIAS THE CURRENT NEGOTIATIONS THE FATE OF JERUSALEM IS ONE OF THE CENTRAL SUBJECTS OF THE CURRENT TALKS BUT THE RESOLUTION IS ARTFULLY WORDED TO CALL FOR ISRAEL'S WITHDRAWAL FROM THE CITY SINCE ISRAEL IS THE ONLY NATION IN THE WORLD THAT IS FORBIDDEN A TURN ON THE SECURITY COUNCIL IT IS UP TO PERMANENT MEMBERS SUCH AS THE US TO ASSURE SOME SORT OF BALANCE DESPITE THE REQUEST OF 60 US SENATORS THOUGH THIS RESOLUTION WAS NOT VETOED SYRIA LEBANON AND JORDAN SAID THEY WOULD NOT RETURN TO THE PEACE TALKS UNLESS THE RESOLUTION WAS PASSED AS IF IT WERE A FAVOR THEY WERE DOING FOR THE US SO US SECRETARY OF STATE WARREN CHRISTOPHER FOUND A WAY TO ABSTAIN FROM TWO OF THE MOST EGREGIOUS PARAGRAPHS WHILE APPROVING THE REST WE NEED TO SEND A STRONG SIGNAL TO THE EXTREMISTS IN ANY QUARTER MR CHRISTOPHER RATIONALIZED BUT THIS IS EXACTLY WHAT THE RESOLUTION DOES NOT DO THIS EPISODE DEMONSTRATES THAT THE UN IS HOPELESSLY BIASED IN THE MIDDLE EAST CAN IT POSSIBLY PLAY A CONSTRUCTIVE ROLE SEE RELATED LETTER LETTERS TO THE EDITOR ISRAEL IS RESPONSIBLE FOR HEBRON MASSACRE WSJ MAY 5 1994 9403240118 YY94 MM05 9405040083 940405 ENVIRONMENT ELECTRIC CARS ALSO POLLUTE AIR EPA STUDY SAYS BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL THEY'RE CALLED ZEROEMISSION VEHICLES BY THEIR ADVOCATES BUT IT TURNS OUT THAT ZEROEMISSION VEHICLES DON'T HAVE ZERO EMISSIONS ACCORDING TO A RECENT REPORT BY THE US ENVIRONMENTAL PROTECTION AGENCY ELECTRIC CARS MAY NOT BELCH EXHAUST BUT THE PLANT THAT GENERATES THE POWER TO CHARGE AN ELECTRIC VEHICLE'S BATTERIES DOES AND MORE ELECTRIC VEHICLES NEEDING POWER COULD MEAN MORE POLLUTION FROM POWERPLANT SMOKESTACKS PARTICULARLY IN THE NORTHEAST THE EPA REPORT SAYS THIS FINDING RELEASED IN A PRELIMINARY STUDY TWO WEEKS AGO THAT EPA STAFFERS CALLED A WORK IN PROGRESS HAS STIRRED CONTROVERSY IN ENVIRONMENTAL AND AUTOINDUSTRY CIRCLES ENVIRONMENTALISTS FEAR THE STUDY COULD BECOME A ROADBLOCK TO POLICIES FAVORING ELECTRIC VEHICLES AUTOINDUSTRY EXECUTIVES WORRY THE REPORT DOESN'T GO FAR ENOUGH TO DISCREDIT ELECTRIC VEHICLES IN THE MIDDLE IS THE EPA WHICH RELEASED THE SENSITIVE REPORT ONLY BECAUSE OF PUBLIC AND CONGRESSIONAL PRESSURE THE EPA WILL DECIDE LATER THIS YEAR WHETHER A COALITION OF STATES IN THE NORTHEAST MAY PROCEED WITH PLANS FOR A STRINGENT POLLUTIONCONTROL PROGRAM FOR MOTOR VEHICLES LIKE THAT OF CALIFORNIA THE CALIFORNIA RULES CALL FOR AUTO MAKERS TO MAKE 2 OF THE VEHICLES THEY SELL IN THE STATE ZEROEMISSION VEHICLES BY 1998 SOME OF THE NORTHEAST STATES WANT TO INCLUDE A SIMILAR ZEROEMISSION VEHICLE MANDATE IN THEIR PLANS A PROPOSAL AUTO MAKERS HAVE CHARACTERIZED AS UNATTAINABLE BECAUSE OF COST AND TECHNOLOGY EMISSIONS MAY ALSO BE A PROBLEM THE EPA NOW SAYS AND IT WANTS FURTHER STUDY ON THE POSSIBLE INCREASE IN POWERPLANT EMISSIONS THAT COULD ARISE FROM CHARGING LARGE NUMBERS OF ELECTRIC VEHICLES IN AREAS WHERE POWER PLANTS ARE FUELED BY COAL AND OIL THE AGENCY'S STUDY SUGGESTS THE ENERGY DEMANDS OF ELECTRIC VEHICLES COULD HURT AIR QUALITY FOR EXAMPLE NITROGEN DIOXIDE EMISSIONS WHICH ARE COMMON IN MANY POWER PLANTS HELP TO CREATE SMOG THE EPA'S REPORT ALSO COMPARES TAILPIPE EMISSIONS FROM GASOLINEPOWERED VEHICLES WITH POWERPLANT EMISSIONS GENERATED BY ELECTRIC VEHICLES IN A CHART THE EPA STUDY SHOWS HOW AN ELECTRIC VEHICLE POWERED BY LEADACID BATTERIES CAN GENERATE THE EQUIVALENT OF 393 GRAMS OF CARBON MONOXIDE PER MILE DURING 100 MILES OF DRIVING BECAUSE OF ITS ENERGY NEEDS CARBON MONOXIDE IS COLORLESS ODORLESS AND HIGHLY POISONOUS BY COMPARISON A GASOLINEPOWERED CAR PLACED UNDER TODAY'S FEDERAL STANDARDS FOR TAILPIPE EXHAUSTS PRODUCES 354 GRAMS PER MILE OF CARBON MONOXIDE OR ABOUT 10 LESS ASSUMING A 200MILE DRIVING RANGE AND REGULAR TAILPIPE INSPECTIONS THE EPA'S CHART ALSO SHOWS THAT TO BE TRUE WHEN AN ELECTRIC VEHICLE IS COMPARED WITH A CONVENTIONAL AUTOMOBILE THAT HAS TO MEET CALIFORNIA'S LOW EMISSION VEHICLE STANDARD THE CALIFORNIA CAR ALSO PRODUCES FEWER GRAMS OF CARBON MONOXIDE PER MILE THAN THE ELECTRIC VEHICLE STILL EPA OFFICIALS SAY THAT BECAUSE MANY CALIFORNIA POWER PLANTS ARE FUELED BY NATURAL GAS WHICH IS RELATIVELY CLEAN ELECTRIC VEHICLES MAY STILL BE A BENEFIT THERE ELECTRIC VEHICLES MAKE SENSE IN CALIFORNIA BUT THEY DON'T MAKE SENSE IN OHIO BECAUSE THE POWER PLANTS USE DIFFERENT FUELS SAYS DICK WILSON THE EPA'S DIRECTOR FOR MOBILE SOURCES MR WILSON SAYS THE EPA HAS BEEN INUNDATED WITH PHONE CALLS SINCE REPORTS ABOUT THE STUDY FIRST LEAKED OUT IN JANUARY JUST DAYS BEFORE ENVIRONMENTAL REGULATORS IN THE NORTHEAST WERE TO VOTE ON THEIR CLEANCAR PLAN CRITICS OF THE EPA STUDY ARGUE THAT THE EPA'S ANALYSIS IS FLAWED BECAUSE IT RELIES ON CURRENT AVERAGES FOR POWERPLANT EMISSIONS TO COMPUTE ITS ELECTRICVEHICLE RESULTS THAT FAILS TO RECOGNIZE THAT POWER PLANTS ALSO ARE GETTING CLEANER AS NEW REGULATIONS COME ON LINE THE EPA WORK DOESN'T HAVE MUCH WEIGHT AT ALL SAYS MICHAEL BRADLEY EXECUTIVE DIRECTOR OF THE NORTHEAST STATES FOR COORDINATED AIR USE MANAGEMENT OR NESCAUM A BOSTONBASED DEVELOPER OF REGIONAL POLLUTIONCONTROL POLICIES OTHERS SUGGEST THE PROBLEM IS POWER PLANTS NOT ELECTRIC VEHICLES IN CERTAIN STATES EVS ARE NOT NECESSARILY A GREAT MOBILE SOURCE STRATEGY BUT THEN MAYBE THEY SHOULDN'T USE REFRIGERATORS OR HAIR DRYERS IN THOSE STATES SAYS SHEILA LYNCH OF THE BOSTONBASED NORTHEAST ALTERNATIVE VEHICLE CONSORTIUM INDEED THE EPA'S WORK IS DESTINED TO JOIN A GROWING PILE OF CONTRADICTORY STUDIES OF THE BENEFITS OF ELECTRIC VEHICLES IN CALIFORNIA WHERE THE FIRST ZEROEMISSIONS MANDATE WAS FORGED THE EPA'S STUDY HAS ALREADY BEEN DISMISSED BY STATE REGULATORS WHO HAVE DECIDED TO CONTINUE THEIR PUSH FOR ELECTRIC VEHICLES OUR CALCULATIONS ARE BASED ON WHAT WE KNOW CALIFORNIA POWERPLANT EMISSIONS TO BE WHICH IS THE REAL WORLD TO US SAYS A SPOKESMAN FOR THE CALIFORNIA AIR RESOURCES BOARD THE STATE'S POWERFUL AGENCY FOR POLLUTION CONTROL NEVERTHELESS AUTOINDUSTRY EXECUTIVES AND CRITICS OF ELECTRIC VEHICLES SAY THE EPA'S ANALYSIS WILL HAVE AN IMPACT BECAUSE IT CHALLENGES THE POLLUTIONFREE IMAGE ELECTRIC VEHICLES HAVE ENJOYED THERE ARE SO MANY PEOPLE WHO HAVE THIS IMPRESSION IN THEIR MIND THAT ELECTRIC VEHICLES ARE SOMEHOW TOTALLY BENIGN SAYS TOM AUSTIN A FORMER CALIFORNIA AIR RESOURCES BOARD EXECUTIVE OFFICER WHO HAS ASSAILED THE STATE'S ZEROEMISSIONS RULE BEFORE THE CALIFORNIA ASSEMBLY THIS STUDY SHOWS THAT FOR MOST AREAS OF THE COUNTRY THIS IS JUST NOT SO AT ALL AN ENVIRONMENTAL PROTECTION AGENCY REPORT ON EMISSIONS ASSOCIATED WITH ELECTRIC CARS INCLUDED A CHART COMPARING CARBON DIOXIDE OUTPUT FROM CONVENTIONAL CARS AND FROM THE GENERATION OF POWER TO CHARGE ELECTRICVEHICLE BATTERIES A MARKETPLACE ARTICLE TUESDAY INCORRECTLY REPORTED THAT THE CHART COMPARED CARBON MONOXIDE EMISSIONS FROM THE TWO SOURCES SEE RELATED LETTERS LETTERS TO THE EDITOR FOR NO POLLUTION TRY A NUCLEAR CAR WSJ MAY 4 1994 9404050084 YY94 MM05 9405040042 940414 REVIEW & OUTLOOK EDITORIAL CAR CRAZY IT'S HARD TO FEEL SORRY FOR CALIFORNIANS THEY GET DEVASTATED BY EARTHQUAKES FIRES AND UNEMPLOYMENT YET THEY BLISSFULLY ALLOW THEMSELVES TO BE GOVERNED BY PEOPLE WHO THINK A REALITY CHECK IS SOMEONE TRYING TO GIVE THEM MONEY THE STATE'S LATEST FLIGHT FROM REALITY IS A MANDATE TO COMPEL THE MARKETING OF THE NOEMISSION VEHICLE OR ELECTRIC CAR BY FALL 1997 A BILL TO SUSPEND THE MANDATE UNTIL THE TECHNOLOGY IS WITHIN SIGHT WAS LAUGHED OUT OF A LEGISLATIVE COMMITTEE THIS FLIES STRAIGHT IN THE FACE OF A CONSUMER MARKET THAT HAS AUTOMAKERS COMPETING FIERCELY ON PRICE PERFORMANCE AND FEATURES RIGHT NOW IT LOOKS LIKE AUTOMAKERS AND DEALERS WILL BE REQUIRED TO SELL AT FIRST 2 RAMPING UP TO 10 OF THEIR FLEET IN THE STATE A CAR THAT ONE LEGISLATOR OBSERVED IS THE SIZE OF A GEO METRO AND THE PRICE OF A CADILLAC ACTUALLY IT'S WORSE THAN THAT THIS CAR LIKELY WON'T BE ABLE TO GO MORE THAN 100 MILES WITHOUT AN HOURSLONG RECHARGE AND WON'T BE ABLE TO HANDLE EXTREMES OF HEAT OR COLD THE BATTERIES PROBABLY WILL NEED REPLACING EVERY TWO YEARS FOR A FEW THOUSAND DOLLARS AND WILL AMOUNT TO 1000 POUNDS OF BALLAST IN THE BACK SEAT AND FOR ALL OF THAT THERE'LL BE VIRTUALLY NO REDUCTION IN POLLUTANTS BEYOND WHAT WOULD OCCUR ANYWAY NEVERTHELESS CALIFORNIA OFFICIALS AND THEIR ARMY OF TECHNOCRATS WOULDN'T HEAR OF ASSEMBLYMAN BERNIE RICHTER'S PROPOSAL TO STOP THE STATE'S DEADLINE CLOCK UNTIL ELECTRICS COULD BE SHOWN TO PERFORM EVEN HALF AS WELL AS INTERNALCOMBUSTION MACHINES THE GREEN LOBBY AND THE VARIOUS SUBSIDY ARTISTS THAT HAVE ATTACHED THEMSELVES TO THE ELECTRIC CAR HAVE PREVAILED WITH THIS MOST COSTLY IN A LINE OF VEHICLE MANDATES IT'S WORTH NOTING THAT ENVIRONMENTAL OFFICERS OF THE EASTERN STATES FROM MAINE TO VIRGINIA RECENTLY VOTED TO PROCEED WITH AN ELECTRICCAR MANDATE THERE TOO JAMES STROCK GOVERNOR PETE WILSON'S EPA DIRECTOR WHEN ASKED WHY ANYONE WOULD BUY THE SORT OF CAR THAT NOW SEEMS INDICATED REPLIED I DO NOT DEAL IN HYPOTHETICALS NEITHER CAN THE AUTOMAKERS WHICH MUST FIGURE ON BUILDING OR PAYING OTHERS TO BUILD THE REQUISITE NUMBER OF CARS ULTIMATELY MORE THAN 200000 A YEAR THE STATE SMOG BUREAUCRACY MAY DECIDE BY 1996 TO DELAY OR ALTER THE REQUIREMENT BUT BILLIONS OF DOLLARS MUST BE INVESTED IN THE MEANTIME TO BE READY WITH SOMETHING AND ANY SIGNIFICANT CHANGES WOULD ELICIT A FURIOUS REACTION FROM THE ELECTRICVEHICLE LOBBY INDEED MR STROCK SAID ONE REASON NOT TO CHANGE THE REQUIREMENT STATUTORILY IS THAT IT WOULD BREACH FAITH WITH THOSE ENTREPRENEURS WHO HAVE MOVED TO FIT THE BILL SURE ENOUGH A SLEW OF ELECTRICCAR INTERESTS QUEUED UP TO CONDEMN MR RICHTER'S BILL THEY RANGED FROM LAB RATS TO SPECIALTY MANUFACTURERS TO MALCOLM CURRIE THE FORMER HUGHES AIRCRAFT CHAIRMAN WHO NOW LEADS THE STATE'S DEFENSECONVERSION PACK AND THINKS ANOTHER TOPDOWN JOB CREATOR IS AT HAND AT THE CENTER IS CALSTART A CONSORTIUM BRED BY THE ELECTRIC UTILITIES TO COME UP WITH THIS BIG NEW USER OF THEIR ALSO ENVIRONMENTALLY CHALLENGED POWER WHAT ENERGIZES THIS EXPERIMENT IS A DEEPLY INGRAINED BELIEF THAT THE GASOLINEPOWERED AUTO EMPIRE IS STIFLING A BREAKTHROUGH JUST AS IT IS SAID TO HAVE ENGAGED IN SO MANY OTHER PLOTS AGAINST THE PUBLIC INTEREST OVER THE YEARS THUS THE COUNTERVAILING WEIGHT OF THE STATE IS NEEDED TO OPEN UP A MARKET FOR DEVELOPMENT OF ZEROEMISSION VEHICLES THE LOBBY FOR ELECTRICS IS INCONSISTENT ON THE ONE HAND IT ARGUES THAT SIGNIFICANT PROGRESS TOWARD A VIABLE PRODUCT WILL COME ONLY IF GOVERNMENT DIRECTLY OR THROUGH INCENTIVES DEVOTES A FORTUNE TO THE PROJECT ON THE OTHER WHEN CHALLENGED ABOUT THE TECHNOLOGY'S FEASIBILITY IT POINTS TO PROTOTYPES THAT SUPPOSEDLY ARE ALREADY DELIVERING THE GOODS OF COURSE THE BIGGEST CONTRADICTION OF ALL IS WHY THE US AUTO INDUSTRY NOW THE ENVY OF THE WORLD AND SPENDING VAST SUMS TO ENSURE ITS COMPETITIVENESS WOULD WANT TO DENY ITSELF SUCH A BIG PIECE OF TRANSPORTATION'S FUTURE WHAT DETROIT UNDERSTANDS AND THE MAGIC WAND WAVERS DO NOT IS THAT ALL THE STUDIES ABOUT THE TYPICAL NEEDS OF MOTORISTS AROUND WHICH THE ELECTRICCAR SPECS ARE BEING BUILT ARE WELLNIGH WORTHLESS PEOPLE MAY RARELY DRIVE MORE THAN 80 MILES A DAY AND COULD WELL ADAPT THEMSELVES TO PLUGGING INTO A RECHARGER EVERY NIGHT BUT WHEN THEY BUY AN AUTO THEY WANT TO BE ABLE TO GO ANYWHERE ANYTIME AND FUSS VERY LITTLE WITH THE THING IN THE END YOU CAN BET THAT THE AUTOMAKERS WILL FIND A WAY TO GET THE PRICES ON THEIR ELECTRICS DOWN FAR ENOUGH THAT JUST ENOUGH ARE SOLD BECAUSE UNDER THE MANDATE THEY HAVE TO PAY A STIFF FINE FOR THOSE THAT AREN'T PURCHASERS OF TRADITIONALENGINE CARS AROUND THE US LIKELY WILL BE ASKED TO PAY MORE TO MAINTAIN THIS INTERNAL SUBSIDY FLEETS OF COMPANIES SUBJECT TO GOVERNMENT CONTROLS OR INDUCEMENTS WILL BE FULL OF ZEROEMISSION VEHICLES TO COVER THE CREDITS THAT UTILITIES WILL GIVE THE BUYERS OF THESE BUGGIES OTHER ELECTRICITY USERS WILL NEED TO BE BILLED A FEW MORE CENTS A DAY IT'S A REMARKABLE UNDERTAKING FOR A STATE LIKE CALIFORNIA THAT CANNOT BALANCE ITS BUDGET SECURE ITS STREETS OR TEACH ITS CHILDREN TO READ AND COUNT WE HOPE LEGISLATORS IN OTHER STATES WILL WATCH AND LEARN SEE RELATED LETTERS LETTER TO THE EDITOR WE ALL FACE CHALLENGE OF CLEANING UP THE AIR WSJ MAY 4 1994 9404140051 YY94 MM05 9405040111 940329 STEPPING FORWARD LEBANESE PREMIER USES OWN RESOURCES TO SPUR REBUILDING OF BEIRUT HARIRI'S UNORTHODOX MEANS SEEM TO WORK BUT TIES TO SAUDIS STIR SUSPICION LURING OVERSEAS INVESTMENT BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL BEIRUT IT IS NEARLY SUNSET IN RAFIC HARIRI'S FORTIFIED PALACE AND THE LEBANESE PRIME MINISTER EXCUSES HIMSELF TO GET DRESSED FOR DINNER MUSTAFA RAZIAN WHO HAS WORKED FOR MR HARIRI FOR 16 YEARS SITS DOWN TO PROVIDE A FEW LAST DETAILS ON WHAT MR HARIRI CALLS THE RESTORATION OF CONFIDENCE IN LEBANON WE SOLD DOLLARS FOR THE FIRST THREE MONTHS OF THE HARIRI GOVERNMENT TO OVERCOME A WAVE OF CURRENCY SPECULATION CONFIDES THE AIDE EXPLAINING HOW MR HARIRI AFTER TAKING OFFICE USED HIS OWN CASH TO BOOST THE LEBANESE POUND BY ABOUT 30 AGAINST THE DOLLAR DID WE SELL DOLLARS WHAT DOLLARS BARKS MR HARIRI UPON HIS RETURN TO THE ROOM HE GLARES AT MR RAZIAN CHAIRMAN OF THE BILLIONAIRE'S TWO LEBANESE BANKS THE AIDE STARES AT THE FLOOR THE CURRENCY HAS STABILIZED BECAUSE I BECAME PRIME MINISTER MR HARIRI SNAPS THERE'S NO OTHER REASON CREDIT THE MAN HIS MONEY OR BOTH RAFIC HARIRI HAS LIFTED LEBANON IF NOT TO ITS FEET AT LEAST TO ITS KNEES THE CIVIL WAR BETWEEN MUSLIMS AND CHRISTIANS ENDED IN 1990 THANKS TO 40000 SYRIAN TROOPS WHO STILL HAVEN'T GONE HOME BUT THE JOB OF REBUILDING THE COUNTRY AFTER 17 YEARS OF SELFDESTRUCTION DIDN'T BEGIN IN EARNEST UNTIL THE 49YEAROLD MR HARIRI WAS APPOINTED PREMIER BY PRESIDENT ELIAS HRAWI IN OCTOBER 1992 IN WHAT MANY LEBANESE CONSIDERED THE LAST CHANCE TO SAVE THEIR COUNTRY SINCE THEN A COMBINATION OF CONSERVATIVE ECONOMIC POLICY AND A STABLE POLITICAL CLIMATE HAS LURED BACK NEARLY 2 BILLION OF LEBANESE SAVINGS THAT HAD FLED OVERSEAS LIFTING BANK DEPOSITS BY MORE THAN 20 MR HARIRI HAS LAUNCHED A 10YEAR 12 BILLION RECONSTRUCTION PROGRAM WHICH IS ATTRACTING FOREIGN INVESTMENT AND AID LAST YEAR THE CAPITAL INFLOW HELPED THE ECONOMY GROW 7 AS THE INFLATION RATE FELL BELOW 10 FOR THE FIRST TIME IN A DECADE FOR ONCE THERE'S A FUNCTIONING LEGAL FRAMEWORK FOR GOVERNMENT POLICY CONCEDES ECONOMIST KAMAL HAMDAN AN ADVISER TO TWO PREVIOUS FINANCE MINISTERS AND A TOUGH HARIRI CRITIC ON MOST ISSUES THE WORK AHEAD REMAINS ENORMOUS DESPITE THE SYRIAN PRESENCE SECURITY REMAINS DICEY AS A PAIR OF RECENT BOMBINGS TARGETING CHRISTIANS ATTEST THE COMMERCIAL HEART OF BEIRUT IS STILL AN EERIE MINELACED MOUNTAIN OF RUBBLE INHABITED BY SYRIAN LABORERS AND THE HARDIEST OF SQUATTERS FROM BOMBEDOUT VILLAGES IN THE COUNTRYSIDE BEIRUT'S WATER AND ELECTRICITY ARE SPORADIC MUCH LIKE AT THE END OF THE WAR THE SEWERLESS STREETS TURN INTO RIVERS IN THE RAIN EXCEPT WHERE BIG POTHOLES CREATE SMALL LAKES IN MUCH OF THE COUNTRY JOBS AND SHELTER ARE SCARCE EVEN IF MR HARIRI'S AMBITIOUS RECONSTRUCTION PLANS SUCCEED HE RECENTLY SIGNED A 380 MILLION CONTRACT WITH THREE EUROPEAN COMPANIES TO OVERHAUL THE NATIONAL TELEPHONE SYSTEM LEBANON WILL NEVER HAVE THE SAME PANACHE IT HAD BEFORE THE WAR THEN BEIRUT'S OPEN PORT AND LIBERAL EUROPEAN ATMOSPHERE MADE IT AN IDEAL HUB FOR DOING BUSINESS IN THE REPRESSIVE BUT AFFLUENT MIDEAST BANKS IN PARTICULAR THRIVED UNDER LEBANON'S SWISSSTYLE SECRECY LAWS TOURISM FLOURISHED AT ITS BEACHES AND MOUNTAIN RESORTS NOW LEBANESE OFFICIALS SAY THEY ARE PLANNING FOR A NEW ERA IN WHICH BEIRUT MUST VIE FOR BUSINESS WITH GROWING COMMERCIAL HUBS SUCH AS CAIRO BAHRAIN DUBAI TEL AVIV AND NICOSIA CYPRUS WE WERE PROTECTED FOR 20 YEARS BEFORE THE WAR SAYS OUSSAMA KABBANI CHIEF URBAN PLANNER FOR SOLIDERE A PRIVATE COMPANY CREATED TO REBUILD CENTRAL BEIRUT NOW WE'LL HAVE TO CREATE A WORLDCLASS PRODUCT TO COMPETE STEERING AND LARGELY BANKROLLING THE REVIVAL IS MR HARIRI A POLITICIAN WHOSE ONLY AIM HE SAYS IS TO BE THE ONE WHO MADE A DIFFERENCE AT THAT HE HAS ALREADY SUCCEEDED ALONG WITH STABILITY MR HARIRI HAS IMPOSED HIS OWN IMPERIAL BEARING ON LEBANON A REPUBLIC THAT HAS NEVER SUFFERED EMPERORS LIGHTLY HE HAS FILLED MANY SENIOR GOVERNMENT POSTS WITH EMPLOYEES OF HIS OWN CORPORATIONS HE HAS SPENT A FORTUNE BUYING LEBANESE REAL ESTATE AND DISPENSING COLLEGE SCHOLARSHIPS AND CHARITY TO THE MASSES HE HAS BECOME LEBANON'S BIGGEST MEDIA BARON WITH NEWSPAPERS RADIO STATIONS AND TWO TELEVISION NETWORKS INCLUDING HIS 50 STAKE IN STATERUN TELE LIBAN HE LAUNCHED SOLIDERE WITH HIS OWN MONEY AND WHEN VARIOUS COFFERS WERE LOW HE STEPPED IN TO PAY THE SALARIES OF UNIVERSITY PROFESSORS STREET CLEANERS EVEN STEWARDESSES OF THE STATEOWNED AIRLINE HE'S TRYING TO RECREATE THE KINGDOM OF SAUDI ARABIA SAYS OMAR DAOUK SCION OF ONE OF BEIRUT'S TRADITIONAL RULING FAMILIES BUT IT WON'T WORK THIS IS LEBANON MR HARIRI UNDERSTUDIED FOR HIS JOB WITH NO LESS THAN KING FAHD AS CROWN PRINCE IN THE MID1970S THE SAUDI RULER ADOPTED MR HARIRI THEN AN AMBITIOUS ACCOUNTANT AS THE ROYAL COURT'S FAVORITE BUILDING CONTRACTOR OVER THE NEXT 20 YEARS MR HARIRI'S OGER ENTERPRISES BUILT DOZENS OF PROJECTSFROM AIRPORTS TO PALACES HOSPITALS TO HOTELS FOR THE SAUDI ROYAL FAMILY AND OTHER PERSIAN GULF EMIRS HE AND KING FAHD BECAME CLOSE FRIENDS FOR HIS DEEDS THE SON OF POOR LEBANESE FARMERS WAS AWARDED A COVETED PRIZE FOR A FOREIGNER IN THE DESERT KINGDOM SAUDI CITIZENSHIP MR HARIRI SPEAKS ARABIC WITH A SAUDI ACCENT THE CORPORATE JET THAT RECENTLY TOOK HIM TO LONDON ON A STATE VISIT HAD SAUDI MARKINGS HIS SONS GREET THEIR FATHER BY KISSING HIS HAND COMMON IN SAUDI ARABIA BUT RARE IN LEBANON MR HARIRI'S ASSETS ESTIMATED AT 3 BILLION TO 4 BILLION PUT HIM AMONG THE WORLD'S 100 RICHEST PEOPLE ACCORDING TO FORBES MAGAZINE HE OWNS SEVERAL BANKS IN THE MIDEAST AND EUROPE A FLEET OF PRIVATE JETS AND ONE OF SAUDI ARABIA'S BIGGEST PUBLISHERS OF THE KORAN AMONG OTHER COMPANIES HE OWNS REAL ESTATE ON FOUR CONTINENTS INCLUDING HOUSTON'S 75STORY TEXAS COMMERCE TOWER WHEN HE RETURNED TO LEBANON AS PREMIER ONE OF THE CONSTRUCTION TYCOON'S FIRST MOVES AFTER STABILIZING THE CURRENCY WAS TO INSTALL HIS OWN CORPORATE EXECUTIVES IN NEARLY EVERY SENIOR GOVERNMENT POST CONNECTED TO FINANCE OR RECONSTRUCTION THE MINISTERS OF FINANCE ECONOMICS AND TELECOMMUNICATIONS ARE HARIRICOMPANY MEN SO ARE THE CHIEF OF BEIRUT'S PORT AND THE DIRECTOR OF THE COUNCIL FOR DEVELOPMENT AND RECONSTRUCTION THE JUSTICE MINISTER IS MR HARIRI'S LAWYER THE CENTRALBANK GOVERNOR IS HIS STOCKBROKER HE BUILT HIS OWN STATE WITHIN THE STATE IN THE TRENDY SADAT TOWER IN WEST BEIRUT SEVERAL DOZEN WELLGROOMED UNIVERSITY GRADUATES PECK AWAY AT PCS PRODUCING MODELS OF THE LEBANESE ECONOMY AT ONE DESK A YOUNG WOMAN CALCULATES THE EFFECT OF GOVERNMENT SALARY INCREASES ON STATE COFFERS AT ANOTHER A MAN IN A EUROPEAN SUIT AUDITS LEBANESE CUSTOMS BRANCHES THE NUMBER CRUNCHERS WORK FOR MR HARIRI'S PRIVATE CENTER FOR ECONOMIC RESEARCH AN OFFICE CONNECTED TO THE MINISTRY OF FINANCE BUT STAFFED ENTIRELY BY EMPLOYEES OF HARIRIOWNED FIRMS AT THE NEARBY MINISTRY ITSELF FEW PEOPLE HAVE ACCESS TO PHONE LINES THAT WORK LET ALONE TO COMPUTERS THEIR GOVERNMENT SALARIES START AT LESS THAN 60 OF WHAT MR HARIRI PAYS I'D NEVER WORK FOR THE MINISTRY SNIFFS ONE HARIRI ANALYST THE TWOTIER GOVERNMENT BOTHERS SOME LEBANESE AFTER A 17YEAR WAR THE FIRST THING YOU SHOULD DO IS REESTABLISH THE CREDIBILITY OF OFFICIAL INSTITUTIONS SAYS ASSAM SALAM AN ARCHITECT AND NEPHEW OF A FORMER PREMIER YOU DON'T DO THAT BY CREATING YOUR OWN PARALLEL MACHINE IN CLANCONSCIOUS LEBANON MR HARIRI ALSO IS WIDELY SUSPECTED OF TRYING TO CHANNEL THE SPOILS OF POWER TO HIS OWN RELIGIOUS COMMUNITY SUNNI MUSLIMS TO BUILD HIMSELF A POLITICAL BASE SUCH A REALIGNMENT WAS ENSHRINED IN THE 1989 PACT THAT ENDED THE CIVIL WAR AND STRENGTHENED MUSLIM POLITICIANS AT THE EXPENSE OF CHRISTIANS BUT THOUGH THE SOCALLED TAIF AGREEMENT ALSO CALLED FOR ENDING LEBANON'S SECTARIAN SYSTEM OF POWER SHARING MR HARIRI HASN'T INTRODUCED ANY SECULAR REFORMS BEYOND CLAN CONFLICT THOUGH THE RISE OF MR HARIRI AND HIS FINANCIAL MILITIA AS HIS SUBORDINATES ARE KNOWN HERE THREATENS THE STATUS OF ELITE MUSLIM AND CHRISTIAN FAMILIES WHO HAVE RUN LEBANON FOR DECADES MANY OF THEIR MEMBERS SPENT THE WAR IN EUROPE AND THE US HOPING TO RETURN SOMEDAY TO REBUILD THE COUNTRY NOW WITH THE MR HARIRI IN CONTROL BACKED BY HIS OIL FRIENDS IN THE PERSIAN GULF THOSE HOPES HAVE LARGELY BEEN DASHED MR HARIRI WHO COMES FROM SIDON IN THE IMPOVERISHED SOUTH IS CONSIDERED AN OUTSIDER IN CLUBBY BEIRUT WHO IS THIS NOUVEAURICHE HARIRI ASKS MAHMOUD SHATILA HEIR TO ONE OF BEIRUT'S BIGGEST SUNNI FAMILY FORTUNES MR SHATILA SAYS THE PREMIER RECENTLY OFFERED HIM 30 MILLION FOR HIS 26000SQUAREFOOT COMPOUND ABUTTING MR HARIRI'S PALACE IN WEST BEIRUT HE WOULDN'T PART WITH IT FOR LESS THAN 50 MILLION HOWEVER OUR FAMILY HAS BEEN RICH FOR FOUR GENERATIONS MR SHATILA SAYS ONE OF OUR GRANDFATHERS WAS LEBANON'S FIRST PRIME MINISTER FIFTEEN YEARS AGO THIS HARIRI WAS NOTHING WHAT PARTICULARLY GALLS MANY LARGE LANDOWNERS ARE MR HARIRI'S PLANS FOR REBUILDING DOWNTOWN BEIRUT SOLIDERE THE COMPANY HE FOUNDED FOR THE JOB HAS EXPROPRIATED MOST OF THE BOMBEDOUT URBAN CORE AS COMPENSATION THE AREA'S LANDLORDS AND TENANTS RECEIVED 65 OF SOLIDERE'S SHARES A STAKE VALUED BY A JUDICIAL COMMITTEE AT ROUGHLY 12 BILLION SOLIDERE'S REMAINING SHARES VALUED AT 650 MILLION WERE RECENTLY SOLD TO THE LEBANESE PUBLIC TO RAISE CASH FOR INFRASTRUCTURE THE STATE IS SUPPOSED TO REPAY SOLIDERE FOR THE INFRASTRUCTURE WORK OF THE PUBLIC SHARES MR HARIRI BOUGHT 19 MAKING HIM SOLIDERE'S BIGGEST SHAREHOLDER I CALL IT THE THEFT OF THE CENTURY SAYS MR DAOUK THE WEALTHY SCION GAZING AT HIS TWOACRE PALM AND FLOWER GARDEN IN THE HEART OF TEEMING WEST BEIRUT BEFORE THE WAR THE DAOUKS CONTROLLED ABOUT 13000 SQUARE FEET OF DOWNTOWN SPACE IN WHAT WAS A CRAZY QUILT OF SOUKS THEY ARE SLATED TO GET ABOUT 48 MILLION IN SOLIDERE SHARES FOR IT MR DAOUK SAYS IT'S WORTH 39 MILLION EVEN THOUGH DEMOLISHED IF THEY HAD LET US REBUILD IT OURSELVES 70 OF DOWNTOWN BEIRUT WOULD HAVE ALREADY BEEN BUILT BY NOW HE CONTENDS THE IRANIANBACKED HEZBOLLAH HAS ALSO COME OUT AGAINST SOLIDERE ARGUING THAT ISLAMIC LAW PROTECTS PEOPLE FROM GIVING PROPERTY AGAINST THEIR WILL THE SHIITE GROUP HAS MANY FOLLOWERS AMONG THE 15000 OR SO SQUATTERS DOWNTOWN SOLIDERE ISN'T FOR THE BENEFIT OF THE STATE BUT FOR THE BENEFIT OF RAFIC HARIRI HAJ MOHAMMED BEJAWI A HEZBOLLAH PARLIAMENTARY DEPUTY SAYS BEFORE SPEEDING OFF FROM A DOWNTOWN RALLY IN HIS MERCEDESBENZ LIMOUSINE THE SAME GRIPE AND OTHERS ARE HEARD IN CHRISTIAN EAST BEIRUT NAYLA BUSTROS SEHNOUI HAILS FROM ONE OF LEBANON'S OLDEST AND WEALTHIEST GREEK ORTHODOX FAMILIES HER GREATUNCLE WAS HANGED FOR OPPOSING OTTOMON RULE SHE AND HER HUSBAND OWNED NINE BUILDINGS IN THE SOLIDERE DISTRICT IT ISN'T THE LOSS OF PROPERTY SHE LAMENTS HOWEVER BUT THE LOSS OF LEBANON'S COSMOPOLITAN SOUL THE BEIRUT CENTER WAS THE RESULT OF DECADES AND DECADES OF LEBANESE CULTURE SHE SAYS ALL CONFESSIONS AND CLASSES WORKED AND LIVED DOWNTOWN THE PETTY FUNCTIONARIES THE TEXTILE MERCHANTS FROM TRIPOLI THE LAWYERS NOW THE LEBANESE PEOPLE WHO USED TO MIX THERE WILL NEVER BE ABLE TO GO BACK DOWNTOWN WILL BE ONLY FOR THE VERY RICH FOREIGN COMPANIES THE VERY RICH ARABS IN THE GULF AND THE VERY RICH LEBANESE ABROAD MRS SEHNOUI OFFERS A THEORY POPULAR AMONG THE LEBANESE ELITE FOR WHY SINCE AS FAR BACK AS 1983 MR HARIRI HAS COMMITTED HIMSELF AND HIS SAUDI SPONSORS TO REBUILDING DOWNTOWN BEIRUT HE WANTS TO PROVE SOMETHING TO KING FAHD NOT THAT HE'S EQUAL NOBODY IS EQUAL TO THE SAUDI KING BUT HE WANTS TO PROVE HE'S A REAL MEMBER OF THE ROYAL FAMILY AT THE SOLIDERE HEADQUARTERS THERE ISN'T MUCH ARGUMENT ABOUT WHETHER THE LANDOWNERS AND TENANTS WERE FULLY COMPENSATED THEY PROBABLY WEREN'T STAFF PLANNERS ADMIT BUT THE GREATER PUBLIC GOOD OF REBUILDING LEBANON'S ECONOMY OUTWEIGHS ANY UNFAIRNESS THEY SAY YOU FOUND FOR THE FIRST TIME IN THIS COUNTRY LITTLE GUYS BUYING SHARES IN SOLIDERE JUST TO DO SOMETHING FOR LEBANON SAYS MR KABBANI THE URBAN PLANNER MR KABBANI IS A HARIRI BELIEVER IN THE MID1980S THE 32YEAROLD BEIRUT NATIVE FLED THE WAR TO STUDY URBAN DESIGN AT HARVARD ON A SCHOLARSHIP FROM THE HARIRI FOUNDATION HE THEN WORKED IN BOSTON BEFORE GOING TO WORK FOR SOLIDERE HE HAS HELPED STEER THE PROJECT AWAY FROM ITS EARLY BLUEPRINTS OF A GRANDIOSE MODERN CITY TOWARD AN OLDER MORE LEVANTINE DESIGN WITH OPEN SPACES AND EXCAVATIONS OF BEIRUT'S 4000YEAR PAST MR HARIRI DEFINITELY WANTS TO GO DOWN IN HISTORY AS THE MAN WHO REBUILT HIS COUNTRY MR KABBANI SAYS BUT WHAT IT LOOKS LIKE IS UP TO US THE PREMIER HIMSELF OFFERS A PLAINER REASON FOR HIS ENTRY INTO THE HORNET'S NEST OF LEBANESE POLITICS I AM A SIMPLE LEBANESE GUY WHO MADE A FORTUNE IN SAUDI ARABIA AND DIDN'T FORGET HIS PEOPLE THE MORE MY WEALTH GREW THE MORE I HELPED MY COUNTRY THIS IS IN MY BLOOD RAFIC HARIRI LEBANON'S WEALTHY PRIME MINISTER DIDN'T HELP PAY THE SALARIES OF MIDDLE EAST AIRLINES' STEWARDESSES BECAUSE OF A TRANSLATION ERROR A PAGEONE ARTICLE MARCH 29 ERRONEOUSLY REPORTED THAT MR HARIRI HAD PERSONALLY HELPED THE AIRLINE IN A PINCH 9405040069 940329 POLITICS & POLICY HILLARY CLINTON'S COMMODITIES BROKER WAS DISCIPLINED FOR VARIETY OF VIOLATIONS BY JEFFREY TAYLOR AND BRUCE INGERSOLL STAFF REPORTERS OF THE WALL STREET JOURNAL HILLARY RODHAM CLINTON'S COMMODITIES BROKER WAS DISCIPLINED BY REGULATORS FOR A VARIETY OF WRONGDOING BOTH BEFORE AND AFTER MRS CLINTON'S SUCCESSFUL FORAY INTO CATTLEFUTURES TRADING IN THE LATE 1970S ROBERT L RED BONE MRS CLINTON'S BROKER AT THE SPRINGDALE ARK OFFICE OF FUTURES BROKERAGE FIRM REFCO INC WAS ACCUSED AMONG OTHER THINGS OF ALLOCATING TRADES TO INVESTORS IN HIS BRANCH OFFICE AFTER HE HAD DETERMINED WHETHER THE TRADES WERE WINNERS OR LOSERS REGULATORS SAY OUR CONCERN AT THE TIME WAS THAT HE COULD HAVE BEEN ALLOCATING TRADES SAID JOHN TROELSTRUP THEN A VICE PRESIDENT IN CHARGE OF COMPLIANCE AT THE CHICAGO MERCANTILE EXCHANGE WHERE MRS CLINTON'S CATTLEFUTURES TRADES WERE PROCESSED WE HAD OCCASIONAL COMPLAINTS FROM CUSTOMERS AT THE REFCO SPRINGDALE OFFICE AND SOME OF THOSE COMPLAINTS MADE ALLEGATIONS ABOUT ALLOCATIONS OF LOSING TRADES TO THEIR ACCOUNTS IN DECEMBER 1979 THE CHICAGO MERC DISCIPLINED MR BONE FOR SERIOUS AND REPEATED VIOLATIONS OF RECORDKEEPING FUNCTIONS ORDERENTRY PROCEDURES MARGIN REQUIREMENTS AND HEDGE PROCEDURES THE ACTION AGAINST MR BONE WAS FIRST REPORTED BY SECURITIES WEEK A NEWSLETTER PUBLISHED BY MCGRAW HILL MR BONE AGREED AT THE TIME TO A THREEYEAR SUSPENSION OF HIS MERC REGISTRATION AS A COMMODITY BROKER THE COMMODITY FUTURES TRADING COMMISSION THE MERC'S FEDERAL REGULATOR ALSO DISCIPLINED MR BONE TWICE FOR VARIOUS INFRACTIONS BUT MR TROELSTRUP NOW AN ATTORNEY IN PRIVATE PRACTICE SAID THE MERC RECEIVED NO ALLEGATION THAT MRS CLINTON WHO WAS A NOVICE TO COMMODITY TRADING DIRECTLY BENEFITED FROM ALLOCATION OF PROFITABLE TRADES TO HER REFCO ACCOUNT DURING THE PERIOD WHEN SHE EARNED ABOUT 98000 TRADING CATTLE CONTRACTS MR BONE COULDN'T BE REACHED FOR COMMENT IN AN INTERVIEW JAMES BLAIR GENERAL COUNSEL FOR TYSON FOODS INC SAID THAT MRS CLINTON STARTED TRADING CATTLE FUTURES AT HIS SUGGESTION BECAUSE HE HIMSELF HAD MADE MONEY IN THE CATTLE MARKET BUT MR BLAIR STRONGLY DENIED THAT MRS CLINTON BENEFITED FROM ALLOCATION OF PROFITABLE TRADES TO HER ACCOUNT WHILE LOSING CATTLE TRADES WERE DUMPED IN OTHER INVESTORS' ACCOUNTS IT COULDN'T HAVE HAPPENED MR BLAIR SAID SHE'D TAKE A POSITION SHE'D GET A CONFIRMATION AND SHE'D CLOSE IT OUT MAYBE WHEN I ADVISED HER TO DO SO MAYBE NOT THE INTERVIEW WITH MR BLAIR SHED NEW LIGHT ON THE AMOUNT OF MONEY MRS CLINTON ACTUALLY INVESTED IN COMMODITIES MY RECOLLECTION IS SHE STARTED WITH AT LEAST 1000 MR BLAIR SAID ADDING THAT MRS CLINTON'S TRADES WERE RELATIVELY MODEST FIVE OR 10 CONTRACTS MRS CLINTON USED HER OWN MONEY AND ASSUMED THE FULL RISK OF HER TRADES SAID JOHN PODESTA A WHITE HOUSE AIDE SHE HAD THEN AND STILL HAS ABSOLUTELY NO KNOWLEDGE ABOUT HER BROKER'S ALLEGED ALLOCATION OF TRADES ANOTHER AIDE SAID THE WHITE HOUSE IS WORKING TO DETERMINE THE EXACT AMOUNT OF MRS CLINTON'S INVESTMENT THE SUCCESS OF MRS CLINTON WHO PARLAYED HER SMALL INVESTMENT INTO A 98000 PROFIT MAY HAVE RESULTED SIMPLY FROM GOOD TIMING AND GOOD ADVICE FROM MR BLAIR MR TROELSTRUP SAID BEING ON THE RIGHT SIDE OF THE MARKET AT THAT TIME WOULD HAVE BEEN EASIER FOR HAVING A CONTACT WITH A TYSON LAWYER MR TROELSTRUP SAID ACCESS TO THAT KIND OF ADVICE AND OPINION COULD HELP A NOVICE JUMP INTO THE MARKET AT THE RIGHT TIME AT THE TIME MR BLAIR WAS OUTSIDE COUNSEL TO TYSON WHICH THEN HAD NO CATTLE OPERATIONS MR BLAIR HAS SAID IT WAS HIS PERSONAL SUCCESS IN TRADING CATTLE FUTURES THAT PROMPTED HIM TO RECOMMEND THE INVESTMENT TO MRS CLINTON HIS FRIEND AND TENNIS PARTNER HE REFERRED HER TO MR BONE WHO WAS ALSO HIS BROKER HE SAID A MONTH BEFORE MRS CLINTON BEGAN TRADING CATTLE FUTURES IN 1978 MR BONE HAD COMPLETED A ONEYEAR PROHIBITION ON TRADING COMMODITIES FOR HIS OWN ACCOUNT HE HAD AGREED TO THE PROHIBITION TO SETTLE CFTC ALLEGATIONS THAT HE PARTICIPATED IN AN ATTEMPT TO MANIPULATE THE CHICAGO MERC'S EGGFUTURES MARKET IN 1970 THE CFTC LATER DISCIPLINED MR BONE A SECOND TIME ALLEGING THAT HE VIOLATED THE TERMS OF THE FIRST ONEYEAR PROHIBITION BY TRADING FOR PERSONAL PROFIT THROUGH ANOTHER BROKER'S ACCOUNT IN THE SECOND CFTC PROCEEDING MR BONE AGREED TO A 100000 FINE A ONEYEAR REVOCATION OF HIS BROKER'S LICENSE AND A THREEYEAR PERSONAL TRADING PROHIBITION SEE RELATED LETTER LETTERS TO THE EDITOR FASCINATING COMMENTS BUT HIS TIMING'S OFF WSJ MAY 4 1994 9403290074 YY94 MM05 9405040056 940323 TEXAS JOURNAL COMMISSIONERS' FEUD ENGULFS COAST PLAN BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNA A FIGHT OVER TEXAS' BEACHES IS KICKING UP SAND IN THE STATE CAPITAL THE SCUFFLE WHICH COULD HAVE SIGNIFICANT ENVIRONMENTAL AND ECONOMIC IMPACT PITS TEXAS AGRICULTURE COMMISSIONER RICK PERRY AGAINST LAND COMMISSIONER GARRY MAURO FORMER TEXAS A&M SCHOOLMATES AND TWO OF THE STATE'S HIGHESTPROFILE POLITICIANS AT ISSUE IS THE PROPOSED COASTAL MANAGEMENT PLAN A PET PROJECT OF MR MAURO THAT OFFERS A BLUEPRINT FOR THE USE AND OVERSIGHT OF 370 MILES OF GULF COASTLINE THE PLAN APPROVED IN CONCEPT DURING THE 1991 TEXAS LEGISLATIVE SESSION APPEARED UNTIL RECENTLY TO BE QUIETLY ON ITS WAY TO FINAL APPROVAL THE ONLY REMAINING HURDLE WAS A HALFDOZEN PUBLIC HEARINGS NOW THOUGH THE PLAN MAY STILL BE ADOPTED ITS PATH WON'T BE SO QUIET WHILE GROUPS REPRESENTING ENVIRONMENTALISTS AND MANY COASTAL RESIDENTS SUPPORT THE PLAN SOME LANDOWNERS AND FARMERS ALONG THE COAST SAY THEY FEAR IT WILL STRANGLE DEVELOPMENT AND INTERFERE WITH WATER AND PESTICIDE USE COUNTY AND CITY LEADERS SAY MR MAURO'S COASTAL COORDINATION COUNCIL WHICH DREW UP THE PLAN HAS OVERSTEPPED ITS BOUNDS LEADING THE FIGHT IS MR PERRY ONCE A DEMOCRAT LIKE MR MAURO NOW A REPUBLICAN WHO CLAIMS THE PLAN WOULD CREATE A SUPERBUREAUCRACY THAT WOULD THREATEN PRIVATEPROPERTY RIGHTS LAST SPRING GOV ANN RICHARDS WITH MR MAURO'S SUPPORT VETOED LEGISLATION THAT WOULD HAVE PUT MR PERRY ON THE BEACHPLANNING PANEL MR PERRY NOW HAS ASKED THE STATE ATTORNEY GENERAL FOR A RULING ON QUESTIONS ABOUT HOW MUCH POWER MR MAURO'S COUNCIL HAS THE TWO MEN WHO WORK IN THE SAME BUILDING HAVE EXCHANGED IMPERSONAL SOMETIMES CAUSTIC LETTERS ABOUT THE PLAN I KNOW THERE'S A RIFT OVER THIS ISSUE A VERY STRONG RIFT SAYS REPUBLICAN POLITICAL CONSULTANT KARL ROVE THERE WAS A DELIBERATE EFFORT ON MAURO'S PART TO CUT RICK PERRY OUT OF THIS COMMISSION ADDS GEORGE SHIPLEY A DEMOCRATIC POLITICAL CONSULTANT GARRY PERCEIVES PERRY AS SOMEONE WHO IS ACTING UNCONSCIONABLY SOMEONE WHO IS WILLING TO TRIFLE WITH THE DEGRADATION OF TEXAS BEACHES THE RIVALRY HAS SERVED TO FRAME THE DEBATE ABOUT THE FUTURE OF TEXAS BEACHES WHICH THE LAND OFFICE ESTIMATES ARE ERODING AT A RATE OF ABOUT 50 FEET A YEAR IN 1991 THE TEXAS LEGISLATURE APPROVED A SWEEPING COASTALMANAGEMENT BILL GIVING THE LAND OFFICE POWER TO CURTAIL EROSION GUARANTEE PUBLIC ACCESS TO BEACHES AND PROTECT DUNES THE LEGISLATION ALSO CREATED THE COASTAL COORDINATION COUNCIL TO DEVELOP AND ENFORCE A PLAN WHAT DOES THE COUNCIL'S PLAN DO FOR STARTERS SUPPORTERS SAY IT TRIES TO RESOLVE CONFLICTING RULES ADMINISTERED BY STATE AGENCIES IN ONE EXAMPLE STATE LAW REQUIRES CORPUS CHRISTI TO RELEASE FRESHWATER INTO ITS BAY TO REDUCE SALT LEVELS BUT THE TEXAS RAILROAD COMMISSION HAS AUTHORIZED OIL COMPANIES TO DISCHARGE HIGHLY SALINE WASTEWATER INTO THE SAME BAY THE PLAN ALSO GIVES THE STATE NEW AUTHORITY TO OVERRULE LOCAL DECISIONS WHERE IN THE PAST IT HAD TO RESOLVE ISSUES IN COURT FOR INSTANCE IF SOUTH PADRE ISLAND ISSUES A PERMIT ALLOWING A DEVELOPER TO BUILD A RETAINING WALL THE COUNCIL CAN REVERSE THE DECISION IF IT DETERMINES THE STRUCTURE COULD DAMAGE DUNES MR MAURO SAYS THE COUNCIL WON'T ESTABLISH ANY NEW LAWS BUT WILL MERELY COORDINATE EXISTING AGENCY RULES I THINK WE'RE GOING TO END UP ELIMINATING RED TAPE END UP ELIMINATING THE DELAYS AND CONFUSION ALL THESE MYRIAD AGENCIES HAVE CREATED BY NOT WORKING TOGETHER HE SAYS MOREOVER MR MAURO ARGUES THE COASTAL COUNCIL HAS ADDRESSED MR PERRY'S SPECIFIC OBJECTIONS THE COUNCIL NOW EVEN REFERS TO ONE SECTION OF THE PLAN AS THE PERRY AMENDMENT HE SAYS AS FOR THE AGRICULTURE COMMISSIONER'S CONTINUING OPPOSITION MR MAURO SAYS ONE MIGHT THINK POLITICS HAD SOMETHING TO DO WITH IT I AM NOT GOING TO POLITICIZE THIS BUT THE PLAN HAS SOME COASTAL RESIDENTS WORRIED THEY SAY THE UNCERTAINTY ALREADY HAS HURT THEIR BUSINESS WHEN PEOPLE COME IN HERE TO TALK ABOUT DEVELOPING AND BUYING LAND THE STREET TALK IS YOU CAN'T DO ANYTHING BECAUSE THE PLAN IS SO RESTRICTIVE SAYS JACK PONTON OWNER OF COLDWELL BANKER ISLAND REALTORS IN PORT ARANSAS ENTER MR PERRY WHO THIS MONTH HELD A NEWS CONFERENCE ATTACKING THE PLAN THERE'S THIS LITTLE GNAWING SUSPICION IN MY MIND THAT GARRY'S LOOKING AT COASTAL RESIDENTS SMILING AND SAYING TRUST ME' MR PERRY SAYS HIS CONCERNS ARE SHARED BY RAILROAD COMMISSION MEMBER BARRY WILLIAMSON A FELLOW REPUBLICAN WHO SITS ON THE COASTAL COUNCIL MR WILLIAMSON SAYS HE TOO BELIEVES THE PLAN'S REACH IS TOO BROAD THOUGH IT IS UNLIKELY MR PERRY WILL BE ABLE TO DERAIL THE PLAN HIS OPPOSITION COULD AID MR WILLIAMSON'S EFFORT TO SLOW IT DOWN OR AT LEAST WIN MORE CHANGES AFTERWARD WILL THERE BE HARD FEELINGS IF RICK'S DEALING IN GOOD FAITH WE'LL BE ABLE TO COME UP WITH A PLAN THAT WILL SATISFY HIS CONCERNS MR MAURO SAYS WE TALK ALL THE TIME MR PERRY SAYS I'M NOT GOING TO GO DOWN THERE AND HIT HIM ON THE KNEE WITH A CLUB OR ANYTHING SEE RELATED LETTER TEXAS JOURNAL LETTERS TO THE EDITOR RICK PERRY ON COASTAL PROTECTION WSJ MAY 4 1994 9403230137 YY94 MM05 9405040049 940329 THE SELLING GAME LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY TIMOTHY D SCHELLHARDT MORE COMPANIES LINK SALES PAY TO CUSTOMER SATISFACTION IBM BASES 40 OF SALESPEOPLE'S COMMISSIONS ON ITS ASSESSMENT OF CUSTOMER FULFILLMENT INDIANAPOLIS POWER & LIGHT ASKS MAJOR CUSTOMERS TO GRADE THEIR ACCOUNT REPS FROM A TO F INCENTIVE PAY HINGES ON THE RESULTS CONSULTANT HEWITT ASSOCIATES SAYS 27 OF COMPANIES USE SOME MEASURE OF CUSTOMER SERVICE IN THEIR SALESINCENTIVE PROGRAMS ANOTHER 23 WEIGH DOING SO THE DRIVE FOR QUALITY EXPLAINS THE TREND SAYS HEWITT'S TOM MOTT MOREOVER INDUSTRY CONSOLIDATION TRIMS THE NUMBER OF SALES ACCOUNTS BUT MAKES CONTENTED CUSTOMERS THAT MUCH MORE CRITICAL JUST LANDING THE SALE ISN'T EVERYTHING THAT COUNTS THESE DAYS SAYS MICHAEL SHRINER INDIANAPOLIS POWER VICE PRESIDENT OF MARKETING HOW DO SALESPEOPLE REACT THE GOOD ONES LOVE IT AND THE MARGINAL ONES ARE SCARED TO DEATH SAYS BRUCE HALE OF NATIONAL FUEL DISTRIBUTION IN BUFFALO NY TEAM SELLING CATCHES ON BUT IS SALES REALLY A TEAM SPORT A GROWING NUMBER OF COMPANIES FOLLOW THE LEAD OF DUPONT DIGITAL EQUIPMENT DATA GENERAL AND TANDEM COMPUTERS IN PUTTING SALES REPS ENGINEERS TECHNICIANS AND PRODUCTION MANAGERS ON TEAMS TO SERVE CUSTOMERS AND WIN NEW ACCOUNTS ONE PERSON CAN'T DO IT ALL ANYMORE SAYS MARK BLESSINGTON SALESPRACTICE NATIONAL DIRECTOR FOR CONSULTANT SIBSON & CO INDUSTRIES SUCH AS FURNITURE AND APPAREL ARE SLOW TO EMBRACE THE IDEA THOUGH SALESPEOPLE TYPICALLY WORK BEST AS THE LONE RANGER WITHOUT TONTO CONTENDS JACK FALVEY A LONDONDERRY NH SALESMANAGEMENT CONSULTANT WITH BIG EGOS AND LOTS OF DRIVE THE BEST SALESPEOPLE ARE COMPETITORS NOT COOPERATORS ADDS ROBERT LAVERY A NEW YORK MANAGEMENT CONSULTANT THE GENDER GAP NARROWS IN SALES PAY BUT IT IS STILL VERY WIDE MEDIAN INCOME FOR SALESWOMEN ROSE 63 FROM 1982 TO 1992 CENSUS BUREAU FIGURES SHOW WHILE GAINING ONLY 43 FOR MEN WOMEN MADE BIGGER STRIDES IN ALL MAJOR SALES OCCUPATIONS EXCEPT FOR SALARIED SALES SUPERVISORS FEMALE COMMODITIES SALES REPS RECORDED THE BIGGEST PAY GAINS 71 VS 40 THE PAY GAP IS DEFINITELY NARROWING BECAUSE A LOT OF SALESWOMEN ARE WORKING SO HARD AT IT SAYS MARILYN MOATS KENNEDY A WILMETTE ILL CAREER COUNSELOR STILL MEN IN SALES EARN ON AVERAGE 31346 WHILE WOMEN GET 17924 WHILE THE NUMBER OF SALESWOMEN EARNING MORE THAN 50000 JUMPED SEVENFOLD TO 141000 IN 1992 MEN IN THAT ELITE GROUP NUMBER 801000 THREE TIMES THE DECADEEARLIER FIGURE RETAIL SALES REMAINS A LAND OF LOW PAY FOR BOTH GENDERS WITH WOMEN EARNING 11928 AND MEN EARNING A BIT MORE ONCE YOU COULD MAKE A LIVING WORKING IN A STORE SAYS MS KENNEDY BUT YOU CAN'T ANYMORE SEX GUYS & VIDEOTAPE PLAYBOY MAGAZINE ARMS SALES REPS WITH INTERACTIVE COMPACT DISKS AND MULTIMEDIA PLAYERS TO SHOW ADVERTISERS THAT WOMEN ARE NOT OFFENDED BY THE PUBLICATION'S NUDITY THE DISKS USE SOUND AND VIDEO TO SHOW INTERVIEWS WITH 23 FEMALE SUPPORTERS OF PLAYBOY INCLUDING COLUMNIST LIZ SMITH FEMINIST AUTHOR BETTY FRIEDAN AND NEW YORK AD EXEC MARY FRITZWILSON SLOW ROAD CERTIFYING SALES PROFESSIONALS MAKES SNAILLIKE PROGRESS ONLY 800 OF 150000 US AUTO SALESPEOPLE HAVE COMPLETED THE NATIONAL AUTOMOBILE DEALERS ASSOCIATION'S FOURPHASE CERTIFICATION PROGRAM IN THE TWO YEARS IT HAS BEEN AVAILABLE IN SEPTEMBER THE INTERNATIONAL ASSOCIATION OF SALES PROFESSIONALS BEGINS A COLLEGE PROGRAM LEADING TO AN INTERNATIONAL CERTIFIED SALES PROFESSIONAL DESIGNATION THE SALES FAX TO GET THE REQUIRED DOCTORS' WRITTEN PERMISSION TO SEND THEM DRUG SAMPLES STERITEK INC MOONACHIE NJ LAUNCHES PHYSICIANS FAX NETWORK COSPONSORED BY THE AMERICAN MEDICAL ASSOCIATION AND SPRINT THE NETWORK ENABLES SALESPEOPLE TO CONNECT WITH 66000 DOCTORS EVENTUALLY RISING TO 260000 HIGHTECH SELLING ELIMINATES SOME SALES OFFICES SALESPEOPLE CAN USE COMPUTER SOFTWARE TO PROSPECT FOR LEADS GET DATA ON CUSTOMERS AND MAKE INSTANT PRESENTATIONS CARLSON TRAVEL NETWORK IN MINNEAPOLIS CLOSES ITS FIELD OFFICES AND HAS ITS 25 SALES REPS OPERATE FROM HOME WITH LAPTOPS THE TRAVEL FRANCHISE CONCERN FIGURES IT SAVES UP TO 10000 A REP IN OVERHEAD BUT AUTOMATION IS NOT CHEAP OR WITHOUT HEADACHES EASTMAN KODAK'S OFFICEIMAGING DIVISION FIGURES HIGHTECH SELLING COSTS 14000 A SALES REP INITIALLY PLUS UP TO 5000 A YEAR TO MAINTAIN PFIZER FOUND ITS YOUNGER SALES REPS SPENT TOO MUCH TIME ON THE COMPUTER SYSTEM WHILE OLDER REPS MANY OF WHOM COULD NOT TYPE WERE RESISTANT SOME CRITICS CLAIM MANY HIGHTECH GADGETS GO UNUSED ONE HIGHTECH GIZMO SALESPEOPLE HATE IS VOICE MAIL THEY COMPLAIN THEY CAN NOT REACH PROSPECTIVE CUSTOMERS AS QUICKLY AS BEFORE THE CHECKOFF LIKE FATHER LIKE SON DAVID HILTON SR AND DAVID HILTON JR TOPSELLING NORTHWESTERN MUTUAL LIFE AGENTS TEAM UP TO MOTIVATE SALES FORCES THEIR PRESENTATION SOME THINGS NEVER CHANGE PROFITABLE TIMES MMD INC IN NEW YORK SUPPLIERS OF PARTTIME SALES REPS SEES BILLINGS QUADRUPLE IN TWO YEARS 90 OF ITS 1450 SALES REPS ARE WOMEN SEE RELATED LETTER LETTERS TO THE EDITOR AMA PROHIBITS USING FAXES AS ADS TO DOCTORS WSJ MAY 4 1994 9403290095 YY94 MM05 9405030083 940408 CORPORATE FOCUS SYNTEX IS SUFFERING FROM CHALLENGE BY GENERIC DRUGS EXPIRED PATENTS ON FLAGSHIP PRODUCTS SPELL PLUNGING SALES AND EARNINGS BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL TWO OR THREE YEARS AGO SYNTEX CORP WAS THE POTENTATE OF PAINKILLERS ITS FLAGSHIP PRODUCTS THE ANTIINFLAMMATORY DRUGS NAPROSYN AND ANAPROX REACHED 1 BILLION IN SALES OR HALF THE COMPANY'S TOTAL REVENUE SYNTEX REAPED 80 GROSS PROFIT MARGINS THAT WERE THE ENVY OF THE DRUG INDUSTRY BUT THE DRUGS' PATENT EXPIRED IN DECEMBER AND SYNTEX WAS HAMMERED BY A RAPID DROP IN PRICE FOR GENERIC VERSIONS INCLUDING THOSE SOLD BY ITS OWN UNIT HAMILTON PHARMA THE DOWNWARD SPIRAL LED TO DISCOUNTS 80 TO 85 LOWER THAN THE BRANDED DRUGS THE COMPANY'S STOCK HAS SKIDDED BELOW 14 A SHARE REPRESENTING A MORE THAN 92 BILLION DROP IN MARKET VALUE SINCE ITS 56ASHARE APEX IN 1992 IN LATE COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY SYNTEX SHARES WERE DOWN 125 CENTS AT 13625 THE LEVEL OF GENERIC EROSION IS UNPARALLELED SAYS RONALD NORDMANN MANAGING DIRECTOR AND ANALYST AT PAINEWEBBER INC IN NEW YORK NO DRUG HAS COLLAPSED AS RAPIDLY AS NAPROSYN YOU LIVE BY THE SWORD AND DIE BY THE SWORD SYNTEX'S PROBLEMS ARE COMPOUNDED BY A DEARTH OF PROMISING NEW DRUGS IN ITS RESEARCHANDDEVELOPMENT PIPELINE ANALYSTS NOW EXPECT EARNINGS FOR THE YEAR ENDING JULY 31 WILL FALL TO BETWEEN 125 A SHARE AND 155 A SHARE LAST YEAR PROFIT WAS 220 A SHARE BEFORE A 249 MILLION RESTRUCTURING CHARGE DEPRESSED PROFIT TO 129 FURTHER EROSION IS FORECAST FOR FISCAL 1995 AMID THIS GRIM OUTLOOK SYNTEX HAS EMBARKED ON A STRATEGY MANY OTHER COMPANIES HAVE SHUNNED IT'S CANNIBALIZING ITS OWN BRANDED LINE BY AGGRESSIVELY MARKETING THE GENERIC VERSION OF NAPROSYN CALLED NAPROXEN THROUGH ITS HAMILTON UNIT BY NOT FLINCHING FROM HUGE PRICE CUTS HAMILTON HAS SUCCEEDED IN RETAINING THE LION'S SHARE OF GENERIC NAPROXEN SALES AND EVEN SELLS BULK CHEMICALS TO ITS COMPETITORS IN THE TRADE SYNTEX ALSO PLANS AN EXPENSIVE MARKET LAUNCH OF AN OVERTHECOUNTER VERSION OF NAPROXEN ALEVE WITH PROCTER & GAMBLE CO THIS TOO IS EXPECTED TO LOSE MONEY IN THE SHORT RUN THE IDEA IS TO PROTECT REVENUES AND MARKET SHARE AT THE COST OF THE BOTTOM LINE THEY DON'T HAVE A CHOICE OBSERVES JOSEPH RICCARDO AN ANALYST AT BEAR STEARNS & CO IN NEW YORK ADDS ARVIND DESAI AN ANALYST WITH NEW YORKBASED MEHTA & ISALY YOU HAVE TO PROTECT THE TOP LINE IN DESPERATE SITUATIONS LIKE THIS THEY HAD TO GO IN AT LOWER AND LOWER PRICES TO MATCH THE ONSLAUGHT OF THE GENERIC DRUGS SOME MIGHT WONDER WHETHER SYNTEX HAS BEEN TOO ZEALOUS IN PROMOTING ITS GENERIC NAPROXEN TO PROTECT SHARE BUT AS MR NORDMANN POINTS OUT THERE WERE FEW OPTIONS SYNTEX LOST THE PATENT ON NAPROSYN IN DECEMBER 1993 AND WITHIN FIVE WEEKS 10 GENERIC COMPANIES ENTERED THE MARKETPLACE THE MOST AGGRESSIVE PRICECUTTER WAS PRICING ITS NAPROSYN KNOCK OFF AT MORE THAN AN 80 PRICE CUT IT SEEMS LIKE IT'S REALLY A BIT OF A DEAD END FOR THEM RIGHT NOW MR DESAI SAYS FOR ANALYSTS TO USE WORDS LIKE DEAD END AND DESPERATE TO DESCRIBE THE PLIGHT OF THE PALO ALTO CALIF COMPANY WOULD HAVE BEEN UNTHINKABLE IN THE HALCYON DAYS OF 1991 AND 1992 BACK THEN THE COMPANY SPENT LAVISHLY NEARLY ONE FIFTH OF ITS REVENUE ON R&D AND PROUDLY BOASTED OF HAVING 50 COMPOUNDS UNDER DEVELOPMENT BUT TODAY AFTER BELTTIGHTENING IT HAS A MUCH THINNER RESEARCH PIPELINE OF SEVEN DRUGS COUPLED WITH THE FAILURE SO FAR OF FOUR OTHER PRODUCTS TO OFFSET THE LOSS IN NAPROXEN SALES THIS SITUATION COULD LAST YEARS BEFORE RELIEF IS IN SIGHT FOR NOW HOWEVER THERE'S NO NEW REVENUE GUSHER IN SIGHT FOR SYNTEX VERY DETERMINED EFFORTS ARE BEING MADE BY SYNTEX SAYS MR DESAI TO PUMP UP SALES TO OFFSET AN EXPECTED 300 MILLION PLUNGE IN NAPROXEN SALES FROM FOUR OTHER PRODUCTS TORADOL FOR POSTSURGICAL PAIN HAS FLAT SALES AT 320 MILLION A YEAR SYNAREL A HORMONE SPRAY FOR TREATMENT OF UTERINE DISORDERS SLIPPED SLIGHTLY AMID COMPETITION TO ABOUT 17 MILLION A YEAR CYTOVENE FOR AN INFECTION THAT CAUSES BLINDNESS IN AIDS PATIENTS AND OTHERS ROSE MODESTLY TO ABOUT 88 MILLION IN ANNUALIZED SALES TICLID FOR STROKE AND HEART DISEASE JUMPED TO ABOUT 70 MILLION IN ANNUALIZED SALES FROM 45 MILLION LAST YEAR BY LATE 1995 TO EARLY 1996 SYNTEX MAY BE IN LINE FOR SOME REVENUE RELIEF THIS IS DEPENDENT ON SUCCESS IN THREE OR FOUR PRODUCT MOVES INCLUDING GETTING APPROVAL FOR AN ORAL FORM OF CYTOVENE WINNING A EXPANDED APPROVAL FOR TORADOL BASED UPON CURRENT SAFETY STUDIES IN 10000 PATIENTS GROWTH OF TICLID SALES AND MARKET APPROVAL OF A NEW DRUG TO PREVENT THE REJECTION OF KIDNEY TRANSPLANTS SYNTEX'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER PAUL FREIMAN DECLINED TO BE INTERVIEWED FOR THIS ARTICLE HOWEVER HE ISSUED A STATEMENT ACKNOWLEDGING THE SERIOUSNESS OF THE PATENT EXPIRATION WE'RE IN FOR A COUPLE OF DIFFICULT YEARS HE SAID BUT MR FREIMAN STRESSED SYNTEX THROUGH ITS ITS RECENT BELTTIGHTENING GENERIC SALES AND OVERTHECOUNTER PRODUCT STRATEGY WAS SERIOUS ABOUT BECOMING MORE COMPETITIVE DESPITE A PAINFUL RESTRUCTURING PROGRAM SLASHING EMPLOYMENT TO 9500 FROM 11700 BY 1995 AND CLOSING FACILITIES IN THE US FRANCE BRITAIN AND CANADA SOME ANALYSTS FEEL SYNTEX IS STILL OVERSPENDING IF CASH PROBLEMS DEVELOP THE SCENT OF A DISTRESSED COMPANY COULD INVITE TAKEOVER SHARKS IN SUCH AN ATMOSPHERE SYNTEX' DIVIDEND OF 104 A YEAR A MAJOR SUPPORT AGAINST FURTHER STOCKPRICE EROSION COULD BECOME VULNERABLE TOO IF THE DIVIDEND IS SUSPENDED AND THE STOCK WEAKENS FURTHER WALL STREET EXPECTS POTENTIAL INTEREST IN A TAKEOVER COULD BLOSSOM BUT EVEN HERE SYNTEX HAS PROBLEMS THAT COULD BLOCK ITS ACQUISITION DESPITE BEING BASED IN THE LEAFY UNIVERSITY TOWN OF PALO ALTO SYNTEX IS CHARTERED IN PANAMA A TROPICAL TAX SHELTER AMONG THE VERY FINEST IN THE WORLD SAYS PAINEWEBBER'S MR NORDMANN WHICH ALLOWS THE COMPANY AN EFFECTIVE CORPORATE TAX RATE OF 6 THAT'S JUST A FRACTION OF THE AVERAGE DRUG COMPANY'S TAX RATE FOR 1994 WHICH WILL BE ABOUT 34 HE SAYS ANALYSTS ARE BETTING THE INTERNAL REVENUE SERVICE WOULD FROWN ON ANY SUITOR'S EFFORT TO CLAIM THIS TAX BENEFIT THUS MR NORDMANN SAYS ANY ACQUIRING US COMPANY WOULD FIND SYNTEX'S DECLINING EARNINGS BASE FULLY TAXED WHICH MEANS THE COMPANY WOULD NOT BE WORTH EVEN 14 A SHARE SEE RELATED LETTER LETTERS TO THE EDITOR SYNTEX DRUGS NEARING THE END OF THE PIPELINE WSJ MAY 3 1994 9404080042 YY94 MM05 9405030009 940401 INTERNATIONAL WORLD WIRE COMPILED BY CATHERINE BOLGAR SHOPPERS THRONGED SINGAPORE STORES A DAY BEFORE MOST GOODS AND SERVICES WERE HIT BY A NEW TAX SIMILAR TO THE VALUEADDED TAX IN SOME COUNTRIES THE 3 LEVY APPLIES TO ALL GOODS AND SERVICES EXCEPT THOSE DESIGNED SPECIFICALLY FOR EXPORT FOREIGN VISITORS WHO BUY AT LEAST 320 OF GOODS MAY SEEK REFUNDS BUT FACE RED TAPE AT THE POINT OF PURCHASE AND UPON LEAVING THE COUNTRY SINGAPORE EXPECTS ABOUT 5000 TOURISTS A DAY TO CLAIM REFUNDS THE NEW MEASURE IS A RADICAL DEPARTURE FROM THIS CITYSTATE'S TRADITIONAL TAX STRUCTURE WHICH DEPENDED ON DIRECT PERSONAL AND CORPORATE TAXES BOTH ARE TO BE REDUCED WITH THE CORPORATE TAX FALLING TO 27 FROM 30 SEPARATELY TWO GOVERNMENT AGENCIES SOUGHT BIDS TO DEVELOP A 47ACRE SITE NEAR THE FINANCIAL DISTRICT INTO A THEME PARK UNDER A 15YEAR LEASE FASTGROWING SHENZHEN IN CHINA'S SOUTHERN GUANGDONG PROVINCE PLANS TO BUILD A SUBWAY SYSTEM TO EASE ITS CHRONIC TRAFFIC CONGESTION THE OFFICIAL XINHUA NEWS AGENCY SAID CONSTRUCTION ON THE 25MILE LINE IS TO START NEXT YEAR IN THE FIRST PHASE 16 MILES OF LINE WOULD BE BUILT OVER FOUR YEARS AT A COST OF 161 BILLION THE SUBWAY WOULD RUN FROM THE CITY'S RAILWAY STATION TO ITS AIRPORT AND EVENTUALLY COULD BE LINKED TO HONG KONG'S RAIL SYSTEM RUSSIA AGREED TO HEAR GRIEVANCES FROM COAL MINERS AFTER SEVERAL HUNDRED OF THEM PICKETED GOVERNMENT HEADQUARTERS FOR THE SECOND DAY DEMANDING HELP FOR THEIR AILING INDUSTRY THE INTERFAX NEWS AGENCY REPORTED THE GOVERNMENT OWES MINERS AS WELL AS WORKERS IN OTHER INDUSTRIES BILLIONS OF RUBLES IN BACK WAGES MINERS IN KAZAKHSTAN WHO FACE SIMILAR PROBLEMS DECLARED A WARNING STRIKE FOR TODAY THEY ARE DEMANDING THAT THEIR WAGES BE INDEXED TO INFLATION AND THAT COAL PRICES BE RAISED THE NORTHERN GREEK PORT OF SALONIKA DREW MORE THAN A MILLION PROTESTERS IN A RALLY BACKING THE COUNTRY'S TRADE EMBARGO AGAINST THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA THE PROTEST WAS SPURRED BY THE EUROPEAN UNION'S DEMAND THIS WEEK THAT GREECE LIFT THE EMBARGO OR RISK BEING SUED IN THE EUROPEAN COURT GREECE IMPOSED THE EMBARGO ON THE NEIGHBORING BALKAN REPUBLIC SIX WEEKS AGO BARRING IT FROM USING SALONIKA'S PORT THROUGH WHICH 80 OF ITS TRADE AND OIL SUPPLIES HAD PASSED GREECE WANTS MACEDONIA TO CHANGE ITS NAME CONSTITUTION AND FLAG TO PROVE THAT IT DOESN'T INTEND TO TAKE OVER THE GREEK PROVINCE OF THE SAME NAME TAIWAN LOOSENED TWO CONTROLS ON COMMERCIAL BANKS CONTINUING A SERIES OF FINANCIAL REFORMS THE FIRST MOVE GAVE BANKS GREATER DISCRETION IN DEALING WITH FAVORED CLIENTS INSTEAD OF A GOVERNMENTSET MINIMUM DEPOSIT FOR BANK CLIENTS THAT WISH TO OPEN LETTERS OF CREDIT BANKS MAY ADJUST SUCH DEPOSITS AS THEY SEE FIT THE SECOND MEASURE CANCELED RESERVE REQUIREMENTS FOR BANKS INVOLVED IN FOREIGNEXCHANGE TRADING AND FOREIGNCURRENCY DEPOSITS SEPARATELY TAIWAN WILL PROVIDE 341 MILLION OVER THREE YEARS TO HELP ITS INDUSTRIES ACQUIRE MODERN TECHNOLOGY IN A MOVE TO REDUCE IMPORTS OF JAPANESE INDUSTRIAL PRODUCTS AND COMPONENTS A SINGAPORE COURT IMPOSED FINES ON AN ECONOMIST TWO STOCKBROKERS AND TWO JOURNALISTS FOR VIOLATING THE OFFICIAL SECRETS ACT ANALYSTS WHO MONITOR SINGAPORE'S ECONOMY FEAR THE ACTION WILL MAKE THEIR WORK MORE DIFFICULT SINGAPORE HAS A WELLPUBLICIZED BAN ON OBTAINING SENSITIVE INFORMATION BEFORE IT'S OFFICIALLY RELEASED MANY ANALYSTS GAVE THE SINGAPORE MONETARY AUTHORITY HIGH MARKS FOR DISSEMINATING PUBLIC INFORMATION QUICKLY AND SAID THE GOVERNMENT'S RESTRICTIONS DON'T HAMPER THEIR PRIMARY ECONOMIC RESEARCH BUT THE CONVICTIONS MAY PUT A CHILL ON THE FACETOFACE MEETINGS WITH GOVERNMENT OFFICIALS THAT ARE CRUCIAL TO INTERPRETING ECONOMIC POLICY OTHER ECONOMISTS SAID INDIA OPENED A SMALL WINDOW FOR IMPORTS OF CERTAIN CONSUMER GOODS IN AN AMENDED TRADE POLICY THAT TAKES EFFECT TODAY IMPORTS OF CONSUMER GOODS HAD BEEN BANNED EXCEPT WHEN BROUGHT IN AS PERSONAL BAGGAGE THE INDIAN GOVERNMENT DOESN'T FAVOR UNRESTRICTED IMPORTS BECAUSE MOST CONSUMER GOODS ARE MADE IN INDIA BY SMALL MANUFACTURERS THAT IT CONSIDERS IMPORTANT IN CREATING EMPLOYMENT AND EXPORTS THE CHANGED POLICY ALLOWS LARGE EXPORTERS TO USE SPECIAL IMPORT LICENSES TO IMPORT AND SELL SPECIFIED CONSUMER DURABLES AND A RANGE OF OTHER PRODUCTS WHOSE IMPORT IS OTHERWISE BANNED OR RESTRICTED IN ORDER TO PROTECT DOMESTIC INDUSTRY THE PRODUCTS INCLUDE TELEVISION SETS AUDIO AND VIDEO EQUIPMENT HOUSEHOLD APPLIANCES SPORTS GOODS HEALTH PRODUCTS PORTABLE TELEPHONES AND OFFICE EQUIPMENT THE POLICY ALSO COVERS SILVER AND GOLD WHICH IS RESTRICTED OTHERWISE TO EXPATRIATE INDIANS RETURNING HOME TWO HUNDRED AIR FRANCE WORKERS BLOCKED RUNWAYS AT PARIS'S ORLY AIRPORT FOR TWO HOURS DELAYING A DOZEN FLIGHTS TO PROTEST MANAGEMENT PLANS TO CUT 5000 JOBS AND BOOST PRODUCTIVITY AT THE UNPROFITABLE STATERUN AIRLINE RUSSIA'S INDUSTRIAL OUTPUT IN THE FIRST QUARTER OF 1993 FELL 25 COMPARED WITH A YEAR EARLIER BUT INFLATION SLOWED TO 8 A MONTH IN MARCH FROM 22 IN JANUARY FIRST DEPUTY PREMIER OLEG SOSKOVETS SAID SEE RELATED LETTER LETTERS TO THE EDITOR INDIA'S IMPORT RULES WSJ MAY 3 1994 9404010095 YY94 MM05 9405020021 940412 ENOUGH IS ENOUGH ON WHITEWATER BY ARTHUR SCHLESINGER JR ONE GREAT BLEMISH IN THE POPULAR MIND OF AMERICA AND THE PROLIFIC PARENT OF AN INNUMERABLE BROOD OF EVILS THE ENGLISH VISITOR TELLS US IS UNIVERSAL DISTRUST YOU NO SOONER SET UP AN IDOL FIRMLY THAN YOU ARE SURE TO PULL IT DOWN AND DASH IT INTO FRAGMENTS ANY MAN WHO ATTAINS A HIGH PLACE AMONG YOU FROM THE PRESIDENT DOWNWARDS MAY DATE HIS DOWNFALL FROM THAT MOMENT FOR ANY PRINTED LIE THAT ANY NOTORIOUS VILLAIN PENS ALTHOUGH IT MILITATE DIRECTLY AGAINST THE CHARACTER AND CONDUCT OF A LIFE APPEALS AT ONCE TO YOUR DISTRUST AND IS BELIEVED THE ENGLISH VISITOR WAS CHARLES DICKENS AND HE WAS TELLING AMERICANS THESE THINGS IN 1842 A CENTURY AND A HALF LATER UNIVERSAL DISTRUST HAS CLEARLY NOT VANISHED FROM THE AMERICAN PSYCHE NOR IS A MEASURE OF DISTRUST A BAD THING FOR A DEMOCRACY IT IS PROPER AND NECESSARY THAT PRESIDENTS BE HELD RIGOROUSLY RESPONSIBLE FOR EVERYTHING THEY ORDER OR APPROVE AS PRESIDENT THE PRESIDENT SAID ANDREW JACKSON MUST BE ACCOUNTABLE AT THE BAR OF PUBLIC OPINION FOR EVERY ACT OF HIS ADMINISTRATION BUT THE CURRENT WHITEWATER HULLABALOO INTRODUCES A STARTLING AND UNPRECEDENTED DOCTRINE THAT A PRESIDENT SHOULD BE INVESTIGATED NOT FOR THINGS HE HAS DONE AS PRESIDENT BUT FOR THINGS HE MIGHT OR MIGHT NOT HAVE BEEN INVOLVED IN A DOZEN YEARS BEFORE HE BECAME PRESIDENT HAS THERE BEEN A PREVIOUS INSTANCE IN AMERICAN HISTORY WHEN CONGRESSIONAL COMMITTEES AND SPECIAL PROSECUTORS WERE MOBILIZED TO INVESTIGATE A PRESIDENT'S PREPRESIDENTIAL CAREER I CAN THINK OF NONE THE TRADITIONAL ASSUMPTION HAS BEEN THAT A CANDIDATE'S PREPRESIDENTIAL CAREER IS AN ENTIRELY LEGITIMATE ELECTION ISSUE BUT THAT ONCE THE ELECTION IS OVER AND THE NEW PRESIDENT HAS BEEN ANOINTED BY THE VOTERS THE SLATE IS WIPED CLEAN AND THE PRESIDENT IS THEREAFTER JUDGED ON HIS PRESIDENCY THIS IS WHERE COMPARISONS WITH WATERGATE OR IRANCONTRA FAIL IN THOSE CASES PRESIDENTS WERE PURSUED NOT BECAUSE OF EXHUMATIONS FROM THE PAST BUT BECAUSE OF ILLEGAL PROJECTS UNDERTAKEN IN THE PRESIDENTIAL PRESENT THE WHITEWATER DOCTRINE IN SHORT IS AN ASTONISHING HISTORICAL INNOVATION IF IT HAD BEEN APPLIED TO PREVIOUS PRESIDENTS TO LYNDON JOHNSON FOR EXAMPLE THINK WHAT A FIELD DAY CONGRESSIONAL COMMITTEES AND SPECIAL PROSECUTORS WOULD HAVE HAD DIGGING UP POLITICAL AND FINANCIAL DIRT IN TEXAS A REJOINDER IS THAT MR CLINTON IS BEING PURSUED NOT FOR WHAT HAPPENED IN ARKANSAS LONG BEFORE HIS PRESIDENCY BUT FOR A PRESUMED COVERUP PERPETRATED BY HIS PRESIDENCY IT IS TRUE ENOUGH THAT MR CLINTON HAS BEEN ILLSERVED BY HIS WHITE HOUSE STAFF HE HAS SURROUNDED HIMSELF WITH PEOPLE WITH LIMITED GOVERNMENT EXPERIENCE HIS STAFFERS HAVE NOT KNOWN HOW LITTLE THEY KNOW THE CONSEQUENT SUCCESSION OF WHITE HOUSE RESIGNATIONS AND SUBPOENAS FEEDS THE SUSPICION THAT THERE MUST BE SOMETHING ROTTEN IN THE INNER CIRCLE REORGANIZATION OF THE WHITE HOUSE STAFF AND RECRUITMENT OF PEOPLE OF EXPERIENCE AND STATURE SHOULD BE ONE OF THE PRESIDENT'S TOP PRIORITIES BRINGING IN LLOYD CUTLER IS AN EXCELLENT BUT APPARENTLY BY MR CUTLER'S CHOICE ONLY A TEMPORARY FIX BUT THE REAL ISSUE IS NOT MR CLINTON'S WHITE HOUSE STAFF IT IS WHETHER ANYTHING HAPPENED IN ARKANSAS A DOZEN YEARS AGO TO JUSTIFY THIS EXTRAORDINARY DETOUR FROM PRESENT URGENCIES OF GOVERNMENT IF ALL THAT IS INVOLVED IN WHITEWATER IS SOUTHERN COURTHOUSE POLITICS OF A FAMILIAR SORT WHAT DOES THAT HAVE TO DO WITH THE CLINTON PRESIDENCY A DECADE LATER DID HARRY TRUMAN'S ASSOCIATION WITH THE PENDERGAST MACHINE DISQUALIFY HIM FROM THE PRESIDENCY AND IF THE PRESS AND THE REPUBLICANS DO COME UP WITH SOME MAJOR OFFENSE COMMITTED YEARS AGO WHAT DO THEY HAVE IN MIND AS THEIR NEXT STEP DO THEY REALLY THINK THAT THIS WOULD PROVIDE GROUNDS FOR IMPEACHMENT OBVIOUSLY THE WHITEWATER STALKERS HAVE OTHER MOTIVATIONS THAN DISINTERESTED CONCERN FOR THE GENERAL WELFARE AND FOR THE HISTORICAL RECORD REPUBLICANS ARE USING WHITEWATER IN AN ATTEMPT TO DERAIL A REFORM PROGRAM THAT WAS JUST BEGINNING TO GATHER STEAM AND TO DISCREDIT A PRESIDENTIAL WIFE WHOSE VIEWS THEY ARE RELUCTANT TO ATTACK DIRECTLY AS FOR THE PRESS SOME REPORTERS ONE FEARS ARE ENGAGED IN A QUEST FOR PULITZER PRIZES AND WOODWARDBERNSTEIN NOTORIETY OTHERS FEEL THAT THEY WERE DECEIVED BY THE INCOMPLETE AND INACCURATE EXPLANATIONS THE CLINTON PEOPLE GAVE THEM DURING THE CAMPAIGN AGAIN THE STAFF PROBLEM AND ARE DETERMINED NOT TO BE TAKEN IN AGAIN AND THE DYNAMICS OF COMPETITION SOMETIMES DRIVE JOURNALISTS TO LOSE THEIR SENSE OF PROPORTION IN PURSUIT OF A JUICY STORY LITTLE COULD BE MORE RIDICULOUS THAN THE RECENT TIME COVER STORY HINTING DARKLY THAT GEORGE STEPHANOPOULOS MIGHT BE OBSTRUCTING JUSTICE BECAUSE HE QUERIED THE HIRING OF A FORMER REPUBLICAN PROSECUTOR BY A DEMOCRATIC TREASURY DEPARTMENT TO LOOK INTO AN ASPECT OF THE WHITEWATER AFFAIR I DO NOT KNOW OF ANY WHITE HOUSE IN HISTORY DEMOCRATIC OR REPUBLICAN THAT WOULD NOT HAVE OBJECTED TO THE APPOINTMENT OF A RABID PARTISAN FROM THE OPPOSITION TO A POST THAT COULD DO DAMAGE TO THE ADMINISTRATION EVEN THE AUGUST NEW YORK TIMES DEVOTES LEAD EDITORIALS TO WHITEWATER AS IF THIS WERE THE MOST URGENT ISSUE FACING THE NATION IT CALLS ON NEWS ORGANIZATIONS TO PUT MORE RESOURCES RATHER THAN FEWER INTO THE WHITEWATER STORY CITING THE FAILURE OF THE PRESS TO FOLLOW UP ON THE IRANCONTRA AND SAVINGSANDLOAN SCANDALS BUT THOSE SCANDALS WERE THE RESPONSIBILITY OF AN ADMINISTRATION IN POWER THEY WERE NOT SCANDALS OF MR REAGAN'S PREPRESIDENTIAL PAST ONE EXPECTS THE WALL STREET JOURNAL A NEWSPAPER THAT TOLERANTLY ENDURES MY PERIODIC HERESIES TO DENOUNCE A REFORM ADMINISTRATION ENGAGED IN VENTURES OF WHICH THE JOURNAL'S EDITORS DISAPPROVE BUT WHAT IN THE WORLD IS THE TIMES DRIVING AT WHY DO TIMES EDITORS THINK THAT PUTTING MORE RESOURCES INTO AN INVESTIGATION OF ANCIENT HISTORY IN ARKANSAS IS SO VITAL FOR THE FUTURE OF THE REPUBLIC AS TO JUSTIFY BRINGING DOWN AN ADMINISTRATION THAT THE TIMES GENERALLY SUPPORTS OR AT THE VERY LEAST BLOCKING ACTION ON REFORMS THAT THE TIMES GENERALLY APPROVES THE TIMES'S PRIORITIES SEEM A TRIFLE ASKEW FANATICISM AS SANTAYANA SAID CONSISTS IN REDOUBLING YOUR EFFORTS WHEN YOU HAVE FORGOTTEN YOUR AIM READING THE TIMES'S SELFRIGHTEOUS EDITORIALS TODAY ONE CAN ONLY REFLECT WHAT GRAND OPPORTUNITIES EARLIER TIMES EDITORS MISSED IN NOT DEMANDING SPECIAL PROSECUTORS AND CONGRESSIONAL INVESTIGATIONS OF LBJ'S TEXAS PAST CHESTER A ARTHUR'S ADMINISTRATION OF THE NEW YORK CUSTOMHOUSE AND JAMES A GARFIELD'S CONNECTION WITH THE CREDIT MOBILIER AND THE WOODENBLOCK PAVEMENT SCANDALS AND IN THE LONGER RUN ONE WONDERS WHY THE TIMES OR EVEN THE JOURNAL ENDORSES A DOCTRINE HITHERTO UNKNOWN IN OUR HISTORY THAT THROWS OPEN A PRESIDENT'S PAST TO AIMLESS INVESTIGATION AT THE EXPENSE OF THE BUSINESS OF THE PRESENT A DOCTRINE GUARANTEED TO PRODUCE GOVERNMENTAL PARALYSIS ON AN UNPRECEDENTED SCALE AS A HISTORIAN AND BIOGRAPHER I AM IN FAVOR OF HISTORICAL INQUIRIES FOR THEIR OWN SAKE AND I TRUST THAT IN DUE COURSE BILL CLINTON WILL FIND HIS ROBERT CARO BUT I DOUBT THAT SUCH INQUIRIES HAVE MUCH RELEVANCE TO THE ACTIONS OF ADMINISTRATIONS IN OFFICE IF THEY DO SHED LIGHT CONGRESS AND THE PRESS SHOULD FOCUS ON PRESENT ACTIONS NOT ON ALLEGED ANTECEDENTS UNLESS PUTTING IN MORE RESOURCES PRODUCES SOME STUNNING DISCLOSURE MORE AND MORE PEOPLE WILL AGREE WITH BARRY GOLDWATER GET OFF THE PRESIDENT'S BACK AND LET HIM GET ON WITH HIS JOB IN THE END WHITEWATER MAY DAMAGE THE PRESS AND THE POLITICAL OPPOSITION AS MUCH AS IT DAMAGES THE CLINTON ADMINISTRATION THE INITIAL IMPACT CAME FROM EXPLOITATION OF THE UNIVERSAL DISTRUST THAT DICKENS SAW AS A GREAT BLEMISH IN THE AMERICAN POPULAR MIND BUT IF DISTRUST IS UNIVERSAL IT MAY BRING DOWN NEWSPAPER EDITORS AND LEADERS OF THE OPPOSITION AS WELL MR SCHLESINGER IS ALBERT SCHWEITZER PROFESSOR OF THE HUMANITIES AT THE CITY UNIVERSITY OF NEW YORK AND A WINNER OF PULITZER PRIZES IN HISTORY AND BIOGRAPHY SEE RELATED LETTERS LETTERS TO THE EDITOR WE HAVEN'T HAD ENOUGH YET WSJ MAY 2 1994 9404120007 YY94 MM05 9404290205 940429 INTERNATIONAL HENIN REGROUPS AFTER A FALL FROM GRACE NEW RISKTAKING VENTURE DRAWS FIRE IN FRANCE BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS IN HIS HEYDAY WHEN HE BET CORRECTLY ON THE DOLLAR OR MADE PROFITS ON A RISKY PORTFOLIO OF US JUNK BONDS JEANFRANCOIS HENIN WAS SO REVERED IN THE FRENCH BUSINESS COMMUNITY THAT HE WAS DUBBED THE MOZART OF FINANCE THESE DAYS HE'S VIEWED MORE LIKE A PUNK ROCKER WHO LEAVES OIL STAINS ON THE SOFA THE REASON FOR HIS FALL FROM GRACE AS HEAD OF ALTUS FINANCE A FREEWHEELING SUBSIDIARY OF THE FRENCH BANK CREDIT LYONNAIS MR HENIN MANAGED IN JUST FOUR YEARS TO TURN A 10 BILLION FRANC US174 BILLION PILE OF CASH AND TRADABLE SECURITIES INTO A RAGTAG PORTFOLIO OF DUD INVESTMENTS THAT IS RATCHETING UP HUGE LOSSES IN 1993 ALONE ALTUS LOST 27 BILLION FRANCS ACCOUNTING FOR MORE THAN ONETHIRD OF THE LOSSES INCURRED BY STATEOWNED CREDIT LYONNAIS WHICH HAS JUST BEEN BAILED OUT BY THE FRENCH GOVERNMENT PORING OVER THE BOOKS THE BANK'S NEW MANAGEMENT HAS BEEN DISMAYED TO FIND ALTUS OWNING AMONG OTHER THINGS SEVERAL DOZEN LOSSMAKING GOLF COURSES A RUNDOWN AIRLINE A TROUBLED DISTRIBUTION COMPANY AND A LOT OF OVERPRICED REAL ESTATE WE'LL BE LUCKY IF WE CAN LIMIT THE LOSSES SAYS ONE SENIOR BANK OFFICIAL WHO DOESN'T HOLD OUT MUCH HOPE THAT ALTUS WILL BREAK EVEN SOON MR HENIN A BALDING 49YEAROLD WHO SINGS BASS IN HIS LOCAL CHURCH CHOIR HAS LONG BEEN A CONTRARIAN SPECIALIZING IN THE UNFASHIONABLE THE FRENCH HE GRIPES JUST DON'T UNDERSTAND THE NATURE OF RISK RISK IN FRENCH IS A SYNONYM FOR MAKING LOSSES IN ENGLISH IT'S A SYNONYM FOR OPPORTUNITY HE SAYS IN AN INTERVIEW AFTER LEAVING ALTUS IN NOVEMBER AND APPARENTLY UNDETERRED BY THE BLOWS TO HIS REPUTATION HE IS STARTING AFRESH USING A SHELL COMPANY HE ACQUIRED IN DECEMBER HE PLANS TO INVEST IN DISTRESSED COMPANIES OUTOFFAVOR SECURITIES AND EMERGING COUNTRIES THAT OTHERS SHY FROM AMONG OTHER THINGS HE SAYS HE'S PUTTING 150 MILLION INTO A FUND RUN BY LEON BLACK THE FORMER HEAD OF MERGERS AND ACQUISITIONS AT DREXEL BURNHAM LAMBERT INC THAT INVESTS IN DISTRESSED US REAL ESTATE AS THEY DISSECT THE PROBLEMS AT CREDIT LYONNAIS MANY PEOPLE INCLUDING NEW MANAGEMENT ARE POINTING THE FINGER AT LAX MANAGEMENT AND WILD RISKTAKING BUT MR HENIN MAINTAINS THAT THE PROBLEMS AT ALTUS CAME ABOUT PRECISELY BECAUSE CREDIT LYONNAIS DIDN'T ALLOW HIM TO TAKE ENOUGH RISKS ORDERING HIM INSTEAD TO GET INVOLVED IN MORE CONVENTIONAL COMMERCIAL BANKING OPERATIONS THAT STRATEGY HE ADMITS WAS DISASTROUS MR HENIN IS TAKING A BATTERING IN THE FRENCH PRESS ALONG WITH HIS FORMER BOSS AT CREDIT LYONNAIS JEANYVES HABERER FRENCH AUTHORITIES AREN'T AMUSED BY HIS LATEST MOVES EITHER HIS NEW COMPANY ELECTRICITE ET EAUX DE MADAGASCAR IS ACTUALLY A VERY OLD ONE THAT DISTRIBUTED THE ELECTRICITY AND WATER ON THE ISLAND OF MADAGASCAR FROM 1928 UNTIL THOSE OPERATIONS WERE NATIONALIZED IN THE MID1970S AND IS STILL QUOTED ON THE PARIS BOURSE STOCK MARKET AUTHORITIES DIDN'T OBJECT TO MR HENIN'S ACQUIRING THE COMPANY WHICH WAS HELD AT THE TIME BY CREDIT LYONNAIS BUT THEY KICKED UP A FUSS WHEN HE TRIED TO ISSUE 700 MILLION FRANCS OF CONVERTIBLE BONDS LAST MONTH AFTER LONG ARGUMENTS THE REGULATORY AGENCY COMMISSION DES OPERATIONS DE BOURSE INSISTED THAT THE BONDS COULD ONLY BE SOLD IN UNITS OF 500000 FRANCS EACH PUTTING THEM OUT OF REACH FOR MOST PRIVATE INVESTORS IT STAMPED THE EQUIVALENT OF HEALTH WARNINGS OVER THE ISSUE DOCUMENTS DRAWING THE ATTENTION OF POTENTIAL INVESTORS TO THE RISKS AND JUST THIS WEEK THE AGENCY'S PRESIDENT JEAN SAINTGEOURS PUBLICLY CRITICIZED MR HENIN FOR REVIVING A DORMANT SHELL COMPANY SUGGESTING THAT IT BYPASSED BOURSE RULES MR HENIN IS SOUR ABOUT THE TREATMENT THE REGULATORY AGENCY NEVER BEFORE EXPRESSED ITS FEARS ABOUT OTHER SHELL COMPANIES THAT WERE TAKEN UP AND WHICH LOST LOTS OF MONEY HE SAYS HE HAD WANTED TO PRICE THE CONVERTIBLE BOND ISSUE AT 200 FRANCS A UNIT AND COMPLAINS THAT THE HIGHER PRICING HANDICAPS US HE SAYS SOME BANKS PURPOSELY PUT OFF INVESTORS WHO WERE INTERESTED IN BACKING HIM HIS RISE TO PROMINENCE STARTED IN THE 1980S AT THOMSON SA THE STATEOWNED FRENCH ELECTRONICS AND DEFENSE COMPANY AS TREASURER HE TOOK BIG POSITIONS IN CURRENCY MARKETS POSITIONS THAT TURNED OUT TO BE CORRECT PROVIDENCE HAD IT THAT THE DOLLAR DROPPED HE SAYS BY 1987 HIS OPERATIONS ACCOUNTED FOR A SIZABLE SHARE OF THOMSON'S PROFITS AND IT WAS ALAIN GOMEZ THE COMPANY'S CHAIRMAN WHO FIRST LIKENED HIM TO MOZART INDEED HE WAS SO SUCCESSFUL THAT THE FRENCH GOVERNMENT DEEMED IT MORE APPROPRIATE FOR MR HENIN'S OPERATIONS TO BE TRANSFERRED TO CREDIT LYONNAIS IT WAS THERE HE CARRIED OUT THE TRANSACTION THAT CONFIRMED HIS REPUTATION FOR DARING AT HOME AND GAVE HIM ONE ABROAD WITH THE HELP OF MR BLACK ALTUS ACQUIRED THE JUNKBOND PORTFOLIO OF THE FAILED FIRST EXECUTIVE LIFE INSURANCE CO AND WENT ON TO MAKE A PROFIT ON THE TRANSACTION AS THE BONDS' VALUE ROSE BUT ALTUS'S PROBLEMS WERE ALREADY GROWING CREDIT LYONNAIS MR HENIN SAYS WOULDN'T LET HIM BUY UP LARGE AMOUNTS OF DEBT OF DEVELOPING COUNTRIES AS HE WANTED AND INSTEAD SADDLED HIM WITH MORE CONVENTIONAL INVESTMENTS IN SHAKY BANKS AND OTHER COMPANIES CREDIT LYONNAIS OFFICIALS ARE STILL TRYING TO UNTANGLE ALTUS'S CONTORTED FINANCES BUT THEY SAY MR HENIN MAY BE PAINTING TOO ROSY A PICTURE ALTUS APPARENTLY MADE SOME VERY SUBSTANTIAL LOSING BETS ON CURRENCIES IN 1990 THEY SAY WHATEVER SOME STILL RECKON MR HENIN KNOWS HOW TO MAKE MONEY TWO OF THE BIGGEST INVESTORS IN HIS COMPANY ARE SMALL FRENCH MUTUALINSURANCE COMPANIES THAT WERE IMPRESSED BY HIS FLAIR IN THE PAST IN A STRANGE TWIST ONE OF MR HENIN'S CURRENT SHAREHOLDERS IS NONE OTHER THAN HIS OLD COMPANY CREDIT LYONNAIS WHICH HOLDS A SMALL INDIRECT STAKE THROUGH ALTUS A REMNANT OF A PAST THAT ITS NEW MANAGEMENT WOULD LIKE TO FORGET 9404290204 940429 CANADA TO AUCTION BONDS OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION WEDNESDAY TWO BILLION CANADIAN DOLLARS US145 BILLION OF 65 BONDS DUE JUNE 1 2004 THE PROCEEDS WILL BE USED TO REDEEM C120 BILLION OF MATURING GOVERNMENT BONDS AND FOR GENERAL GOVERNMENT PURPOSES 9404290203 940429 SUN CO SEEKS TO SELL TERMINAL PHILADELPHIA SUN CO SAID IT IS TALKING WITH THREE BIDDERS ABOUT BUYING ITS TERMINAL IN CLERMONT IND ALTHOUGH SUN WOULDN'T DISCLOSE A RANGE ON THE PRICES BEING DISCUSSED IT IS BELIEVED THAT THE TERMINAL OPERATION IS VALUED AT LESS THAN 10 MILLION SUN MOSTLY A REFINER AND MARKETER OF OIL PRODUCTS SAID IN A RELEASE THAT IT WILL CONTINUE TO SUPPLY ITS INDIANA CUSTOMERS FROM THIS TERMINAL EITHER UNDER ARRANGEMENTS WITH THE NEW OWNER OF THE TERMINAL OR THROUGH OTHER TERMINAL OPERATORS IN THE AREA 9404290202 940429 ENTERPRISE VICTORY IN FIGHT WITH POWERFUL CAN BE HOLLOW BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL BURBANK CALIF EVEN LEGAL BATTLES THAT PUT MILLIONS OF DOLLARS IN THEIR POCKETS CAN LEAVE ENTREPRENEURS WITH AMAZINGLY LITTLE TO CELEBRATE ALVIN AND ROSALIE SAIDINER OWNERS OF PCC/DRUG DATA SYSTEMS INC HERE WON SEVERAL MILLION DOLLARS IN A RECENT SETTLEMENT OF A PROTRACTED SUIT INVOLVING THE CALIFORNIA ASSOCIATION OF HOSPITALS AND HEALTH SYSTEMS AND 123 INDIVIDUAL HOSPITALS BUT THE LITIGATION PRACTICALLY RUINED PCC A SMALL COMPANY THAT REVIEWS DRUG AND MEDICALSUPPLY CHARGES ON HOSPITAL BILLS FOR INSURERS AND EMPLOYERS WHO WANT TO CUT COSTS WE LOST 80 OF THE BUSINESS MRS SAIDINER SAYS BUSINESS EXPERTS SAY THE SAIDINERS AREN'T ALONE IN THEIR TRIBULATIONS WHEN A SMALL BUSINESS TAKES AIM AT ENTRENCHED INTERESTS A SHOWDOWN IS HARD TO AVOID AND A BIG ADVERSARY WITH DEEP POCKETS CAN HOLD OUT MUCH LONGER THAN A LITTLE GUY YOU CAN BEAT THE RAP BUT YOU STILL GOTTA PAY FOR THE RIDE SAYS JON P GOODMAN DIRECTOR OF THE UNIVERSITY OF SOUTHERN CALIFORNIA'S ENTREPRENEUR PROGRAM A SMALLBUSINESS OWNER MAY DUCK THE WORST BLOWS OF LEGAL BATTLES BY KEEPING A LOW PROFILE DON'T WALK AROUND STICKING YOUR FINGER IN PEOPLE'S NOSES DR GOODMAN ADVISES BUT MR SAIDINER A PHARMACIST WHO COMPARED HIMSELF TO CONSUMER ACTIVIST RALPH NADER BOASTED FOR YEARS ABOUT HIS LONELY FIGHT AGAINST THE 40 ASPIRIN AND OTHER OUTRAGEOUS HOSPITAL CHARGES THE HOSPITALS SUED MR SAIDINER IN 1986 THEIR LAWSUIT BROUGHT IN FEDERAL DISTRICT COURT IN LOS ANGELES ACCUSED PCC OF BREAKING ANTITRUST LAWS BY SETTING ARBITRARILY ESTABLISHED AND UNREASONABLY LOW PRICES ON AVERAGE PCC RECOMMENDS THAT CLIENT COMPANIES AND INSURERS REFUSE PAYMENT ON ABOUT 40 OF A HOSPITAL'S BILL THE COMPANY GIVES SUCH ADVICE WHEN ITS ANALYSIS SHOWS THE CHARGES ARE UNREASONABLE MR SAIDINER QUICKLY COUNTERSUED ON ANTITRUST GROUNDS LAST NOVEMBER THE HOSPITALS QUIETLY AGREED TO A SETTLEMENT THOUGH THE TERMS ARE CONFIDENTIAL ONE PERSON CLOSE TO THE SITUATION SAYS THE SETTLEMENT TOTALED BETWEEN 4 MILLION AND 5 MILLION FOR THE SAIDINERS AND THEIR ATTORNEY THE CHECKS GAVE ME THE MOST IMPORTANT THING I WANTED VALIDATION SAYS MR SAIDINER 59 YEARS OLD THE CASE ULTIMATELY PROVED THAT THE CHILD THAT I CREATED MY BUSINESS WASN'T VIOLATING ANY LAWS THE SETTLEMENT CAME AFTER A SPECIAL MASTER RECOMMENDED THAT THE PRESIDING JUDGE THROW OUT THE HOSPITALS' CLAIMS THAT ADVICE CONTAINED IN A MAY 1993 DOCUMENT FILED WITH THE COURT MEANT THAT PROBABLY ONLY THE CLAIMS IN PCC'S COUNTERSUIT ULTIMATELY WOULD HAVE GONE TO TRIAL PETER ARONSON THE ATTORNEY WHO OVERSAW THE HOSPITALS' CASE WON'T COMMENT EXCEPT TO SAY THE PURPOSE OF THE LAWSUIT WAS SIGNIFICANTLY ACHIEVED THE PURPOSE HE SAYS WAS TO STOP WHAT THE HOSPITALS PERCEIVED TO BE INAPPROPRIATE BUSINESS PRACTICES IN 1985 THE YEAR BEFORE THE HOSPITALS FILED THEIR SUIT PCC HAD 1400 CLIENTS NATIONWIDE AND ANNUAL REVENUE OF CLOSE TO 5 MILLION ACCORDING TO THE SAIDINERS FOUR OF THE CONCERN'S BIGGEST INSURANCECOMPANY CLIENTS NAMED AS DEFENDANTS IN THE INITIAL LAWSUIT SETTLED IN 1989 AFTER SETTLING THEY STOPPED DOING BUSINESS WITH PCC THE SAIDINERS DECLINE TO DISCLOSE PCC'S CURRENT REVENUE BUT CONCEDE THAT IT'S A FRACTION OF WHAT IT WAS NINE YEARS AGO THE LITIGATION CHANGED MY LIFE MR SAIDINER SAYS FOR EIGHT YEARS THE JOB WAS THE CASE THE COMPANY WAS BASICALLY RUN BY MY DAUGHTER SHE DID AN EXCELLENT JOB BUT SHE ISN'T ME THE COUPLE SAYS THEIR BUSINESS NOW EMPLOYS 12 PEOPLE INCLUDING THEMSELVES AND THEIR DAUGHTER DOWN FROM ABOUT 35 IN 1986 MR SAIDINER IS A STUBBORN ENTREPRENEUR WHO WAS AHEAD OF HIS TIME SAYS GREGORY JOHNSON A BENEFITS CONSULTANT WITH WILLIAM M MERCER INC IN SAN FRANCISCO MR JOHNSON CREDITS MR SAIDINER WITH SPURRING THE SPREAD OF PREFERRED PROVIDER ORGANIZATIONS PPOS ARE CONTRACTUAL ARRANGEMENTS IN WHICH HOSPITALS DOCTORS AND OTHER MEDICAL PROVIDERS GIVE DISCOUNTS TO EMPLOYERS AND OTHER LARGE GROUPS IN EXCHANGE FOR GETTING THEIR EMPLOYEES OR MEMBERS AS PATIENTS MANY HOSPITALS SIGNED UP WITH PPOS IN PART TO AVOID THE AUDITS PCC WOULD IMPOSE ON THEM MR JOHNSON SAYS PCC COST CALIFORNIA HOSPITALS MORE THAN 58 MILLION IN DENIED CHARGES OVER SIX YEARS IN THE EARLY 1980S ACCORDING TO DOCUMENTS FROM THE HOSPITAL LITIGATION PPO CONTRACTS GENERALLY ARE A LESS ACRIMONIOUS AND MORE CONVENIENT WAY FOR EMPLOYERS TO CONTAIN MEDICAL COSTS MR JOHNSON SAYS WHILE COMPETITORS AND THE LEGAL BATTLE GNAWED AWAY AT PCC'S BUSINESS THE SAIDINERS WERE HIT WITH OTHER BLOWS THEY SAY THEY WERE FORCED TO SUE THEIR OWN INSURANCE COMPANY AFTER IT STOPPED PAYING PCC'S LEGAL BILLS THE INSURER ULTIMATELY PAID SOME BILLS BUT PORTIONS OF THE SAIDINERS' SUIT ARE STILL PENDING THE HOSPITAL LITIGATION REQUIRED MR SAIDINER TO UNDERGO 21 DAYS OF GRILLING BY OPPOSING ATTORNEYS HE SAYS HE STARTED TAKING ANTIDEPRESSANTS DURING THAT TIME MAXWELL M BLECHER A LOS ANGELES ANTITRUST ATTORNEY WHO REPRESENTED MR SAIDINER COOLLY SAYS THAT HIS CLIENT'S DEPOSITION WASN'T A PREMIER PERFORMANCE THE HOSPITALS REPEATEDLY ATTACKED PCC'S REPUTATION AND MR SAIDINER'S INTEGRITY THEY ACCUSED PCC OF USING AN ARBITRARY AND UNFAIR SYSTEM TO SLASH HOSPITAL DRUG CHARGES AT A HEARING THAT ENDED IN MARCH 1993 A MAGISTRATE JUDGE FOUND THAT A PCC EMPLOYEE WITHHELD CONCEALED AND PARTIALLY IRREVOCABLY DESTROYED RELEVANT EVIDENCE WITH MR SAIDINER'S KNOWLEDGE MR SAIDINER MAINTAINS THAT HIS COMPANY'S PRICING SYSTEM IS REASONABLE AND DENIES DESTROYING ANY EVIDENCE IN RETROSPECT THE SAIDINERS BELIEVE THEY WAGED A LONELY BATTLE AGAINST A RICH AND FACELESS ENEMY THE HOSPITALS BANKROLLED A MULTIMILLIONDOLLAR WAR CHEST THE SAIDINERS SAY THEY SPENT BETWEEN 350000 AND 500000 ON THE HOSPITAL SUIT AND RELATED LITIGATION MR SAIDINER SAYS HE WAS EVEN MORE BOTHERED BY THE FACT THAT NO CEO OF ANY HOSPITAL WAS EVER QUESTIONED THEY DIDN'T HAVE ANY EMOTIONAL INVOLVEMENT AFTER THE SETTLEMENT LAST FALL THE SAIDINERS TOOK A SHORT TRIP TO HAWAII AND RETURNED FEELING RECHARGED THEN CAME THE BIG CALIFORNIA EARTHQUAKE WHICH CAUSED MORE THAN 50000 OF DAMAGE TO PCC'S TWOSTORY BRICK OFFICE BUILDING NOW THE BUILDING HAS BEEN REPAIRED AND THE SAIDINERS ARE CONSIDERING THE FUTURE THEY SAY THEY HAVEN'T DECIDED WHETHER TO TRY TO REBUILD OR SELL THE BUSINESS WE'RE GETTING CALLS FROM HEALTHMAINTENANCE ORGANIZATIONS THAT WANT US TO WORK FOR THEM MR SAIDINER SAYS WOULD THE PHARMACIST DO BATTLE WITH CALIFORNIA HOSPITALS AGAIN MR SAIDINER REFLECTS A SECOND THEN SAYS WISTFULLY PROBABLY MY WIFE AND I ARE BOTH FIGHTERS BUT IT WAS VERY STRESSFUL 9404290201 940429 WE'RE TALKING BASEBALL BY BERNARD GOLDBERG THE WAY THE STORY GOES IT WAS AT SPRING TRAINING IN FLORIDA DURING THE NEW YORK YANKEES' GOLDEN ERA OF THE 1950S CASEY STENGEL THE MANAGER WHO SPOKE HIS OWN BRAND OF ENGLISH CALLED STENGELESE TOLD HIS PLAYERS TO LINE UP IN ALPHABETICAL ORDER ACCORDING TO HEIGHT THAT'S WHEN BASEBALL WAS MORE FUN THAN BUSINESS AND WHEN CASEY'S CATCHER YOGI BERRA WOULD ALLEGEDLY SAY SUCH THINGS AS HITTING IS 80 CONCENTRATION AND 50 LUCK SOME BALLPLAYERS STILL SAY FUNNY THINGS BUT BASEBALL LIKE NOSTALGIA AIN'T WHAT IT USED TO BE OR SO I THOUGHT UNTIL I CAME INTO POSSESSION OF THE GLASSERBUCKLEY PAPERS WHILE WORKING ON A PROFILE OF WILLIAM F BUCKLEY JR THE CONSERVATIVE COLUMNIST I LEARNED THAT HE WOULD BE GOING TO A BASEBALL GAME THE NEW YORK METS OPENING HOME GAME AT SHEA STADIUM THEN I FOUND OUT THAT MR CONSERVATIVE WOULD BE THE GUEST OF MR LIBERAL IRA GLASSER THE EXECUTIVE DIRECTOR OF THE AMERICAN CIVIL LIBERTIES UNION I SHARE NOW WITH YOU PORTIONS OF THE LETTERS BETWEEN MR GLASSER AND MR BUCKLEY MY MEDIA HOUNDS REPORT THAT ON THE CHARLIE ROSE SHOW LAST NIGHT YOU CONFESSED TO NEVER HAVING ATTENDED A MAJOR LEAGUE BASEBALL GAME I OF COURSE GEORGE WILL NOTWITHSTANDING AM ABSOLUTELY THE BEST PERSON IN THE WORLD WITH WHOM TO ATTEND ONE'S FIRST BASEBALL GAME SO HOW ABOUT IT IT WILL HAVE TO WAIT UNTIL APRIL BUT ARE YOU GAME THANK YOU FOR OFFERING TO SAVE MY SOUL YET AGAIN BUT LET ME CONSIDER YOUR INVITATION I HAVE NEVER GONE TO A GAME BECAUSE I'VE ALWAYS HAD THE FEELING THAT IN ORDER TO ENJOY THE EXPERIENCE ONE NEEDS TO IDENTIFY WITH ONE OR THE OTHER TEAM TO EFFECT LOYALTIES THIS WOULD TAKE SOME HOMEWORK I'M NOT SURE I AM WILLING TO UNDERTAKE MAY I THINK ABOUT IT WELL OF COURSE YOU MAY THINK ABOUT IT IT WOULD NOT TAKE MUCH HOMEWORK ON YOUR PART ROOTING FOR A TEAM IS MORE A MATTER OF LOVE AND ACCIDENT RATHER THAN STUDY OPENING DAY A RELIGIOUS HOLIDAY IS ABOUT FIVE MONTHS AWAY AND I WOULD BE PLEASED IF YOU WOULD BE MY GUEST AND STUDENT AT THE GAME OK I ACCEPT YOU MENTIONED APRIL I HOPE IT ISN'T ON A DAY IN APRIL WHEN I WILL BE IN SOUTH AMERICA I THINK IT INDISPENSABLE THAT I SHOULD ROOT FOR WHATEVER TEAM YOU ARE NOT ROOTING FOR SO YOU WILL HAVE TO ADVISE ME ON THAT SCORE ALSO AND THEN DO YOU KNOW WHO WILL BE PLAYING WHOM OR IS THIS DONE BY DRAWING LOTS AT SOME MAGICAL AND ONE HOPES CONSTITUTIONAL MOMENT THE 1994 SCHEDULE HAS NOT YET BEEN PUBLISHED BUT AS SOON AS IT IS I SHALL SPEEDILY INFORM YOU OF THE DATE THE CONTESTANTS AND THE SORRY TEAM THAT WILL BE THE OBJECT OF YOUR INSTANT PARTISANSHIP I THOUGHT ON THIS WINTRY DAY PASTORAL THOUGHTS OF SPRING WOULD WARM THE SOUL AND SO I BRING YOU THIS BASEBALL ALERT AND UPDATE OPENING DAY IS MONDAY APRIL 4 IT IS POSSIBLE THE METS WON'T OPEN UNTIL THE FOLLOWING DAY APRIL 5 AND IF THEY OPEN ON THE ROAD THEIR HOME OPENER WILL PROBABLY BE THE FOLLOWING WEEK YOU SHALL HAVE SPECIFIC INFORMATION ON ALL THIS AS SOON AS IT IS AVAILABLE BUT MEANWHILE TRY NOT TO GO OFF TO SWITZERLAND OR SAILING DURING THESE HIGH HOLY DAYS MORE SOON I HAVE MARKED THE DAYS ON MY CALENDAR WITH GENUINE ANTICIPATION THAT IS TERRIBLE NEWS I AM TENTATIVELY SCHEDULED TO GO TO CHINA ON THE 8TH WHAT ARE WE GOING TO DO DON'T YOU KNOW SOMEBODY WHO CAN CHANGE THE SCHEDULE CHINA WHY ARE YOU GOING TO CHINA NO GAMES ARE SCHEDULED THERE DO I KNOW SOMEONE WHO CAN CHANGE THE SCHEDULE WELL I WAS APPROACHED LAST SUMMER BY THE SEARCH FIRM SEEKING A NEW COMMISSIONER OF BASEBALL BUT SHORT OF THAT NO IN PREPARATION FOR THE BIG EVENT MONDAY A FEW PARTICULARS AND SOME ESSENTIAL BACKGROUND INFORMATION ON THE CUBS AND METS YOU WILL BE PLEASED TO KNOW I STAND OBEDIENTLY FOR THE NATIONAL ANTHEM THOUGH OF COURSE I WOULD DEFEND YOUR RIGHT TO REMAIN SEATED SHOULD YOU SO DECIDE NOW GET READY WE ARE NOT GOING BY LIMOUSINE WE ARE GOING BY SUBWAY DRESS DO NOT WEAR A COAT AND TIE WEAR A HAT BUT NOT ANY HAT AND CERTAINLY NOT A SAILING HAT PEOPLE WOULD LAUGH IN EBBETS FIELD THEY WOULD PROBABLY HAVE REMOVED IT AND YOU TOO BUT THIS IS A MORE GENTEEL CROWD IT IS QUEENS AFTER ALL I KNOW THIS CONNECTION SEEMS FANCIFUL BUT NO MORE SO THAN THE RELATIONSHIP YOU ONCE ASSERTED BETWEEN THE DROP IN SAT SCORES AND THE SUPREME COURT'S SCHOOL PRAYER DECISION IN ENGEL V VITALE MR BUCKLEY ROOTED FOR THE METS THEY LOST MR GLASSER AND HIS ACLU CRONIES WERE MERCILESS THEY CHANTED BUCKLEY'S A JINX BUCKLEY'S A JINX AS YOGI ONCE SAID I WANT TO THANK EVERYBODY WHO MADE THIS DAY NECESSARY MR GOLDBERG IS A CORRESPONDENT WITH THE CBS NEWS MAGAZINE EYE TO EYE WITH CONNIE CHUNG 9404290200 940429 WORLD ECONOMY TWO FIRMS HOPE FOR SUCCESS IN VIETNAM BY DISPENSING ADVICE TO US INVESTORS BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL HANOI VIETNAM JUST ALONG A SIDE STREET FROM THE FIVE COURTYARDS OF THE TEMPLE OF LITERATURE FOUNDED TO HONOR CONFUCIAN SCHOLARSHIP 900 YEARS AGO A MORE MODERN EDUCATION IS UNDER WAY IT INVOLVES LEARNING HOW TO MAKE MONEY IN VIETNAM UNTIL RECENTLY A NEARMORIBUND PLANNED ECONOMY THAT HAS NOW TURNED TO THE FREE MARKET WITH A DESPERATE ENTHUSIASM IT TAKES PLACE AT VATICO THE VIETNAM AMERICA TRADE & INVESTMENT CONSULTING CO ONE OF A SMALL CLUTCH OF US COMPANIES THAT SAW THIS COUNTRY AS AN EMERGING OPPORTUNITY AND GOT HERE EARLY WHETHER THAT SHOWS GREAT FORESIGHT OR MERELY FOOLHARDINESS REMAINS TO BE SEEN BUT VATICO ISN'T ALONE ACROSS TOWN IS A SIMILAR COMPANY ASHTA INTERNATIONAL INC IN THE SAME BUSINESS THOUGH WITH GREATER RESOURCES AND THEREFORE A SOMEWHAT DIFFERENT STRATEGY BOTH COLLECT FEES AND HOPE FOR BONUSES BY ADVISING WOULDBE US INVESTORS HOW TO OPERATE HERE AND BOTH CLAIM A FEW BIGNAME CLIENTS THEY HOPE TO ADD NEW ONES FOR YEARS TO COME BUT THEY HAVE OTHER PLANS AS WELL BOTH SEE VIETNAM AS THE NEXT HOT STOCK IN EAST ASIA AND ARE DETERMINED TO OWN SOME OF IT FOR THEMSELVES SINCE BOTH ARE HEADED BY YOUNG MEN WITH AN ENTREPRENEURIAL BENT AND ACCESS TO MONEY THEY JUST MIGHT SUCCEED UNLESS VIETNAM ITSELF GOES WRONG WHICH NOBODY CAN RULE OUT FOR SURE THE FACT THAT THESE TWO US COMPANIES ARE EVEN HERE SEEMS FAIRLY IMPROBABLE AT FIRST GLANCE ENMITY BETWEEN VIETNAM AND THE US DIDN'T DIE WITH THEIR WAR IN 1975 AND FOR SOME ON BOTH SIDES IT ISN'T OVER YET MOREOVER HANOI RAN A TIGHT POLICE STATE AND COMMAND ECONOMY WELL INTO THE 1980S AN ENVIRONMENT HOSTILE TO ANY FLEDGLING CAPITALIST BEYOND THAT WASHINGTON UNTIL THIS YEAR IMPOSED A TOUGH EMBARGO ON TRADE WITH VIETNAM MAKING ANY AMERICAN DOING SUBSTANTIAL BUSINESS HERE GUILTY OF DEALING WITH AN ENEMY YET JAMES ROCKWELL THE LANKY 33YEAROLD WHO RUNS VATICO AND EUGENE MATTHEWS 36 A ONETIME PHILADELPHIA LAWYER WHO FOUNDED ASHTA IN JAPAN DECIDED QUITE SEPARATELY THAT THAT WAS A TEMPORARY CONDITION THEY SAW A LONG SKINNY NATION BOUNDED BY ASIAN PROSPERITY AND CONCLUDED VIETNAM'S DAY WOULD COME AND SO WOULD THEIRS IF THEY MOVED FAST ENOUGH MR ROCKWELL WAS ON ALASKA GOV WALLY HICKEL'S STAFF WHEN HE DECIDED THREE YEARS AGO TO GAMBLE ON VIETNAM WITH A COLLEAGUE HE CREATED VATICO AND SOON AFTER MOVED HERE HIMSELF TO RUN IT WELL BEFORE THE EMBARGO WAS LIFTED I SAW A COMPLETELY UNDEVELOPED STRIP OF COUNTRY BETWEEN THE TWO FASTEST GROWING AREAS OF THE WORLD NORTHEAST ASIA AND SOUTHEAST ASIA HE EXPLAINS BUT MR MATTHEWS WAS FIRST HE HAD MOVED IN LATE 1990 OFFICIALLY AS A STUDENT HAVING DECIDED THAT VIETNAM WOULD BE ASIA'S NEXT FRONTIER PRESUMABLY HE IS NOW THE WORLD'S ONLY BLACK HARVARD LAW SCHOOL GRADUATE WHO SPEAKS BOTH JAPANESE AND VIETNAMESE VATICO'S CLIENTS INCLUDE CHRYSLER CORP WHICH MAY ASSEMBLE CARS IN THE SOUTH AND BROWN & ROOT THE CONSTRUCTION GIANT THAT HOPES FOR SOME OF VIETNAM'S INFRASTRUCTURE BUSINESS ASHTA HAS AMERICAN EXPRESS CO ITS LEHMAN BROTHERS INC UNIT AND REVLON BUT BOTH SEEK GREATER REWARDS IN OWNERSHIP MR MATTHEWS HAS WALL STREET TIES AND IS PUTTING TOGETHER PERHAPS 40 MILLION TO INVEST IN PROMISING LOCAL VENTURES RESERVING A BIT OF THE EQUITY FOR ASHTA ITSELF FOOD PROCESSING BUSINESS SERVICES AND PERHAPS REAL ESTATE OUTSIDE HANOI AND HO CHI MINH CITY ARE POSSIBILITIES MR ROCKWELL'S FUND IS SMALL HE HAS 1 MILLION COLLECTED IN 50000 UNITS AND IS TURNING TO VIETNAMESE SMALL BUSINESS A WOMAN IN NHA TRANG COULD USE 20000 TO BUY ANOTHER TOURIST BUS WITH A 12MONTH PAYBACK OR IT COULD BANKROLL LITTLE GUYS IN A GARAGE MAKING BICYCLE TUBES MR ROCKWELL SAYS IT DOESN'T TAKE MUCH IT'S HIGHRISK HE ADDS BUT HE THINKS IT COULD PAY OFF HANDSOMELY GIVEN THE ENTREPRENEURIAL SPIRIT FOUND HERE HIS LOCAL STAFF AND THEIR FAMILIES MAY HELP FIND WORTHY CANDIDATES VATICO DOES HAVE 3 OF A QUITE SEPARATE 200 MILLION INVESTMENT COMPANY WHOSE HOLDINGS INCLUDE FOUR TOURIST HOTELS THERE ARE NO GUARANTEES VIETNAM IS NO NEW ASIAN ECONOMIC TIGER YET AND ITS ECONOMY COULD FOUNDER FOR MANY REASONS NEEDLESS TO SAY SPECIFIC INVESTMENTS COULD FAIL EVEN IF THE COUNTRY DOESN'T BUT IF MESSRS ROCKWELL AND MATTHEWS GUESS RIGHT THEY COULD EARN SOME TIDY SUMS WHILE ALSO GIVING THEIR VIETNAMESE HOSTS A FEW LESSONS IN WHAT THE MARKET SYSTEM IS ALL ABOUT 9404290199 940429 BLAW KNOX PENSIONS TO BE TAKEN OVER BY FEDERAL AGENCY WASHINGTON THE PENSION BENEFIT GUARANTY CORP SAID IT WILL TAKE OVER FOUR BLAW KNOX CORP PENSION PLANS THE PBGC WHICH INSURES PRIVATE DEFINEDBENEFIT PENSION PLANS SAID THE PLANS ARE UNDERFUNDED BY 22 MILLION AND WON'T BE ABLE TO PAY PROMISED BENEFITS BLAW KNOX WHICH HAS SOLD MOST OF ITS ASSETS IS IN THE PROCESS OF CLOSING OPERATIONS THE PBGC SAID THE AGENCY WILL TERMINATE THE PLANS TOMORROW AND BECOME THEIR TRUSTEE THE PLANS COVER PENSIONS OF ABOUT 2200 WORKERS AND RETIREES IN WEST VIRGINIA PENNSYLVANIA AND UPSTATE NEW YORK THE AGENCY SAID MOST OF THE RETIREES WILL CONTINUE TO RECEIVE THE SAME RETIREMENT BENEFITS THEY HAVE BEEN GETTING BUT THAT SOME PAYMENTS COULD BE REDUCED BECAUSE OF LEGAL LIMITS ON PBGC GUARANTEES OR BECAUSE CERTAIN RETIREMENT BENEFITS AREN'T FEDERALLY GUARANTEED WHITE CONSOLIDATED INDUSTRIES INC CLEVELAND A SUBSIDIARY OF AB ELECTROLUX STOCKHOLM SWEDEN SOLD ITS BLAW KNOX DIVISION INCLUDING ALL THE BLAW KNOX PENSION PLANS TO THE NEW BLAW KNOX CORP IN 1985 EARLY THIS MONTH BLAW KNOX CORP SOLD MOST OF ITS ASSETS TO NEW BUYERS BUT THE BUYERS DIDN'T ASSUME THE PENSION PLANS THE PBGC SAID THE PBGC SAID IT WILL CONTINUE TO PURSUE LEGAL CLAIMS AGAINST WHITE CONSOLIDATED FOR THE TOTAL OF ABOUT 120 MILLION OF UNDERFUNDING IN ALL SIX PENSION PLANS THE AGENCY ALLEGES THAT A MAIN REASON WHY WHITE CONSOLIDATED TRANSFERRED THE PENSION PLANS TO BLAW KNOX CORP IN 1985 WAS TO EVADE THE PENSION LIABILITY A FEDERAL DISTRICT COURT RULED AGAINST THE PBGC IN THE CASE BUT AN APPEALS COURT OVERRULED THE LOWER COURT SENDING THE CASE BACK TO THE DISTRICT COURT FOR RECONSIDERATION THE SUPREME COURT HAS DECLINED TO REVIEW THE APPEALS COURT DECISION 9404290198 940429 BUILDING CONTRACTS SHOWED INCREASE OF 1 IN MARCH REPORT SAYS NEW YORK CONSTRUCTION CONTRACTING GREW A SPARSE 1 IN MARCH AS SHARP GAINS IN NONRESIDENTIAL BUILDING WERE OFFSET BY STEEP DECLINES IN CONSTRUCTION PROJECTS OTHER THAN BUILDINGS ACCORDING TO FW DODGE THE FORECASTING UNIT OF MCGRAWHILL INC THE DODGE INDEX OF CONSTRUCTION CONTRACTS ROSE TO 110 FROM FEBRUARY'S SEASONALLY ADJUSTED 108 THE INDEX USES 1987 AS BASE YEAR OF 100 LAST MONTH'S FIGURE EQUALED 1993'S PEAK OF 110 WHICH THE INDEX REGISTERED IN OCTOBER SINCE THEN THE INDEX HAD LOST SOME GROUND BEFORE PICKING UP AGAIN IN FEBRUARY STILL THE INDEX IS FARING WELL COMPARED WITH THE LEVELS EXPERIENCED A YEAR AGO FOR THE FIRST THREE MONTHS OF 1994 TOTAL CONSTRUCTION VALUE WAS UP 9 TO 6259 BILLION FROM 5749 BILLION DURING THE SAME PERIOD ONE YEAR AGO IN THE EARLY MONTHS OF 1994 THE VALUE OF BUILDING CONTRACTS WAS BOOSTED BY SECTORS OTHER THAN HOUSING WHICH LED THE CONSTRUCTION RECOVERY IN 1992 AND 1993 SAID ROBERT A MURRAY VICE PRESIDENT OF ECONOMIC AFFAIRS FOR DODGE THIS PATTERN OF ACTIVITY MORE PUBLIC WORKS PROJECTS IN FEBRUARY AND A SURGE OF NONRESIDENTIAL BUILDING IN MARCH MIGHT BE CHARACTERIZED AS SO FAR SO GOOD' WITH REGARD TO 1994'S PROSPECTS SINCE BROADER PARTICIPATION IS JUST WHAT IS REQUIRED TO KEEP THE EXPANSION GOING THIS YEAR MR MURRAY SAID BUT THE RECENT JUMP IN MORTGAGE RATES HAS ADDED A NEW ELEMENT OF UNCERTAINTY TO THIS YEAR'S PICTURE WITH THE NEARTERM IMPACT ON HOUSING YET TO BE SEEN NONRESIDENTIAL BUILDING SUCH AS MANUFACTURING AND HOTELS SURGED 14 REACHING ITS HIGHEST DOLLAR RATE SINCE JULY 1990 AS THE COMMERCIAL INDUSTRIAL AND INSTITUTIONAL SEGMENTS STRENGTHENED COMMERCIAL BUILDING BOUNCED BACK FROM A LACKLUSTER FEBRUARY LED BY GAINS IN THE STRONG STORE AND SHOPPING CENTER CATEGORIES 9404290197 940429 SOME ROCKY MOUNTAIN STATES OUTPACE REST OF US IN ECONOMIC EXPANSION BY LINDLEY H CLARK JR STAFF REPORTER OF THE WALL STREET JOURNAL SEVERAL STATES IN THE WESTERN US ARE OUTPACING THE RATE OF ECONOMIC EXPANSION IN THE REST OF THE NATION AND SEEM LIKELY TO CONTINUE TO DO SO THE PACESETTERS ARE THE ROCKY MOUNTAIN STATES OF UTAH IDAHO NEVADA NEW MEXICO ARIZONA AND COLORADO OUR BIGGEST PROBLEM RIGHT NOW IS MANAGING THE GROWTH WE'VE GOT MAKING SURE THAT WE'LL HAVE THE SCHOOLS HIGHWAYS AND OTHER FACILITIES AS THEY'RE NEEDED SAYS BRAD T BARBER UTAH'S STATE PLANNING COORDINATOR LAST YEAR FOR EXAMPLE NATIONAL UNEMPLOYMENT STOOD AT 68 AT THE END OF THE YEAR PERSONAL INCOME ROSE 35 AND RETAIL SALES CLIMBED 67 IN THE MOUNTAIN STATES ON THE OTHER HAND THE AVERAGE JOBLESS RATE DROPPED TO 59 PERSONAL INCOME ROSE 68 AND RETAIL SALES JUMPED 81 IN 1993 UTAH LED THE NATION IN THE RATE OF INDUSTRIAL JOB GROWTH FOLLOWED BY NEW MEXICO NEVADA AND IDAHO COLORADO AND ARIZONA WERE SEVENTH AND 12TH RESPECTIVELY ON THE LIST OF 50 STATES JEFF THREDGOLD CHIEF ECONOMIST OF KEY CORP A BANKHOLDING COMPANY BASED IN SALT LAKE CITY SAYS THE STATES ARE BENEFITING FROM STRONG HIGHTECHNOLOGY SECTORS ACTIVE CONSTRUCTION MARKETS SOLID TOURISM ACTIVITY AND STRENGTH IN CERTAIN NATURALRESOURCE INDUSTRIES TAKE UTAH AS AN EXAMPLE MORRIS TRAVEL A MAJOR SALT LAKE CITY TRAVEL AGENCY REPORTS ITS BUSINESS SO FAR THIS YEAR IS RUNNING ABOUT 12 AHEAD OF LAST YEAR THE GOVERNOR'S OFFICE OF PLANNING AND BUDGET REPORTS THAT VISITS TO UTAH BY OUTOFSTATERS ROSE TO 15 MILLION LAST YEAR INCLUDING A RECORD NUMBER OF SKIER VISITS MOST PEOPLE DON'T THINK OF UTAH AS A HIGHTECH CENTER BUT A GROWING NUMBER OF TECHNOLOGY COMPANIES ARE LOCATED IN THE STATE AMONG THEM NOVELL INC AND WORDPERFECT CORP WHICH RECENTLY ANNOUNCED PLANS TO MERGE THIOKOL CORP A PRODUCER OF HIGHPROPULSION SYSTEMS IS ALSO BASED IN UTAH AS IS IOMEGA WHICH MAKES PRODUCTS FOR COMPUTER SYSTEMS AND EVANS & SUTHERLAND A PRODUCER OF SPECIAL PURPOSE COMPUTERS WHY ARE WE IN UTAH ASKS JAMES WILSON PRESIDENT OF THIOKOL FOR ONE THING HE SAYS THERE'S THE QUALITY OF LIFE WE FIND IT EASY TO ATTRACT AND HIRE PEOPLE FROM AROUND THE COUNTRY LABOR COSTS REALESTATE COSTS AND FREIGHT COSTS ALL ARE LOWER SAYS GARY MEREDITH A SPOKESMAN FOR EVANS & SUTHERLAND WE DIDN'T HAVE MUCH OF A RECESSION HERE PACKARD BELL A LARGE PRIVATELY HELD PRODUCER OF PERSONAL COMPUTERS BASED IN CALIFORNIA MOVED ITS TECHNICAL ASSISTANCE DIVISION TO MAGNA UTAH LAST YEAR BRINGING IN 600 JOBS BY THE END OF THE YEAR FRITOLAY RECENTLY OPENED A NEW PLANT IN THE SALT LAKE CITY AREA EMPLOYING 800 PEOPLE ACCORDING TO MR THREDGOLD OF KEY CORP ENTRY LEVEL WAGES IN UTAH AVERAGE ABOUT 21500 ABOUT 9 BELOW THE NATIONAL LEVEL STILL LIVING COSTS ARE ALSO LOWER WHICH CONTINUES TO ATTRACT YOUNGER WELLEDUCATED WORKERS NOTES ROBERT EGGERT EDITOR OF BLUE CHIP ECONOMIC INDICATORS A SEDONA ARIZ NEWSLETTER MR EGGERT FIGURES THAT ABOUT 200 PEOPLE MOVE TO ARIZONA EACH DAY A FIGURE THAT INCLUDES MANY RETIREES MR EGGERT SAYS WELLHEELED RETIRED PEOPLE ARE A BIG PLUS TO THE STATES' ECONOMY BECAUSE THEY BRING IN INCOMES BUT REQUIRE FEWER GOVERNMENTAL SERVICES ALL OF THE MOUNTAIN STATES REPORT SIGNIFICANT INMIGRATION MUCH OF IT FROM CALIFORNIA WHERE NATURAL DISASTERS AND A SLUMPING ECONOMY OVER THE LAST FEW YEARS HAVE PERSUADED SOME PEOPLE TO LEAVE COLORADO FOR INSTANCE HAD ABOUT 190 INMIGRANTS A DAY IN 1993 AND ABOUT ONETHIRD OF THEM CAME FROM CALIFORNIA FRED BALL OF THE SALT LAKE AREA CHAMBER OF COMMERCE FIGURES UTAH MUST CREATE 20000 TO 25000 JOBS A YEAR TO KEEP UP WITH POPULATION GROWTH AND INMIGRATION FROM CALIFORNIA AND OTHER STATES SO FAR BECAUSE OF THE BOOMING LOCAL ECONOMY JOB CREATION HASN'T BEEN MUCH OF A PROBLEM LAST YEAR HE SAYS WE CREATED 40000 JOBS OUR UNEMPLOYMENT RATE HAS BEEN RUNNING AROUND 36 OR 37 WAY BELOW THE NATIONAL AVERAGE AND SOME OF MY PEOPLE SAY THEY'RE HAVING TROUBLE FINDING WORKERS FOR ENTRYLEVEL JOBS SIMILARLY IN NEVADA THERE'S NO SIGN OF A SLOWDOWN THREE NEW RESORTS OPENED IN LAS VEGAS LATE LAST YEAR AND AS SOON AS THOSE WERE FINISHED MANY CONSTRUCTION WORKERS MOVED ON TO RENO WHICH HAS SEVERAL PROJECTS UNDER WAY TO KEEP UP WITH ITS DOWNSTATE RIVAL ECONOMISTS IN THE MOUNTAIN STATES EXPECT GROWTH IN THE REGION TO STAY STRONG ALBEIT WITH DIPS AT TIMES PARTICULARLY IF THE NATION'S DEFENSE CUTBACKS TAKE A BIGGER SLICE OUT OF THE REGION'S PAYROLL AND THEY SEE INMIGRATION CONTINUING AS MORE PEOPLE AND EMPLOYERS SEEK TO ESCAPE THE CONGESTION AND SOCIAL PROBLEMS OF URBAN CENTERS SUCH AS LOS ANGELES 9404290196 940429 CANADIAN STEEL OUTPUT INCREASES OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 284501 METRIC TONS IN THE WEEK ENDED APRIL 23 A 24 INCREASE FROM 277831 TONS THE PREVIOUS WEEK BUT A 44 DECLINE FROM 297504 TONS A YEAR EARLIER SAID STATISTICS CANADA A GOVERNMENT AGENCY A METRIC TON IS EQUAL TO ABOUT 220462 POUNDS YEARTODATE PRODUCTION TOTALED 4213930 TONS A 56 DECLINE FROM 4463401 TONS A YEAR EARLIER 9404290195 940429 FINANCING BUSINESS IDEC PHARMACEUTICALS CORP IDEC PHARMACEUTICALS CORP SAN DIEGO SAID IT WILL POSTPONE ITS DIRECT PLACEMENT TO CERTAIN INSTITUTIONAL DIRECTORS OF 2750000 NEW COMMON SHARES THE PHARMACEUTICALS DEVELOPER ATTRIBUTED THE MOVE TO CURRENT MARKET CONDITIONS AND THE PRICE OF ITS STOCK WHICH CLOSED UNCHANGED AT 3375 ON THE NASDAQ STOCK MARKET 9404290194 940429 DIVIDEND NEWS US HEALTHCARE INC US HEALTHCARE INC A MANAGEDHEALTHCARE PROVIDER INCREASED ITS QUARTERLY DIVIDEND 27 ON ITS COMMON STOCK TO 17 CENTS A SHARE FROM 1334 CENTS THE BLUE BELL PA COMPANY ALSO INCREASED ITS DIVIDEND ON CLASS B STOCK 27 TO 153 CENTS A SHARE FROM 12 CENTS BOTH DIVIDENDS WILL BE PAID JUNE 22 TO SHARES OF RECORD JUNE 8 9404290193 940429 FOREIGN EXCHANGE DOLLAR IS GIVEN A DRUBBING ON WEAK ECONOMIC DATA BOND MARKET PLUNGE BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR RECEIVED A PUMMELING YESTERDAY BRUISED BY WEAK US ECONOMIC DATA AND AN UNEXPECTED PLUNGE IN THE US BOND MARKET AS THE DOLLAR RETREATED AGAINST THE YEN AFTER THE RELEASE OF THE DATA AND THE BANK OF JAPAN OFFERED NOT EVEN A HINT OF SUPPORT THE MARKET SMELLED BLOOD PUSHING DOWN THE DOLLAR TO A LEVEL REACHED DURING THE FEB 14 SESSION THAT FOLLOWED THE COLLAPSE OF USJAPAN TRADE TALKS THE DOLLAR'S BEATING BY EUROPEAN CURRENCIES BEGAN FOLLOWING A WORSETHANEXPECTED REPORT ON US FIRSTQUARTER GROSS DOMESTIC PRODUCT OR GDP AND MARCH DURABLEGOODS ORDERS THE GDP OR THE TOTAL VALUE OF A NATION'S GOODS AND SERVICES ROSE AT A 26 RATE IN THE QUARTER A FAR CRY FROM THE 7 PACE OF THE PREVIOUS QUARTER AND BELOW FORECASTS OF A 32 RISE US DURABLE GOODS ROSE 04 IN MARCH AFTER A REVISED 19 DECLINE IN FEBRUARY BUT REMAINED SHARPLY BELOW FORECASTS OF A 1 RISE THE BEARISH NUMBERS OVERSHADOWED A BULLISH WEEKLY DROP IN US UNEMPLOYMENT DOWN 31000 IN THE WEEK ENDED APRIL 23 COMPARED WITH EXPECTATIONS FOR A DECLINE OF 19000 LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16623 MARKS DOWN SHARPLY FROM 16723 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10130 YEN DOWN FROM 10235 YEN STERLING WAS TRADING AT 15135 UP FROM 15040 ON FRIDAY FINANCIAL MARKETS IN TOKYO WERE CLOSED FOR THE START OF THEIR ANNUAL GOLDEN WEEK HOLIDAYS ANALYSTS AND US GOVERNMENT OFFICIALS SAID THE DATA AUGURED WELL FOR INFLATIONARY PRESSURES YET THE BOND MARKET FELL SHARPLY HURT BY A POORLY RECEIVED AUCTION OF FIVEYEAR NOTES INDEED NO AMOUNT OF DAMAGE CONTROL BY US OFFICIALS COULD REVERSE THE TIDE FOR JITTERY US FINANCIAL MARKETS WHITE HOUSE BUDGET DIRECTOR LEON PANETTA NOTED THAT THE US REMAINS ON A PATH FOR STABLE GROWTH LAURA TYSON CHAIRWOMAN OF THE COUNCIL OF ECONOMIC ADVISERS SAID THE GDP ESTIMATE SHOWED THE ECONOMY WAS ON TRACK FOR 3 GROWTH AND 3 INFLATION AND THAT SHOULD CALM FEARS THAT THE ECONOMY IS GROWING AT AN UNSUSTAINABLY RAPID RATE OR THAT INFLATION IS ABOUT TO SPIKE UPWARDS AND TREASURY SECRETARY LLOYD BENTSEN WEIGHED IN WITH HIS ASSESSMENT OF GOOD SOLID GROWTH BUT WORDS WEREN'T ENOUGH SAID ERIC NICKERSON SENIOR ECONOMIST FOR THE BANK OF AMERICA IN SAN FRANCISCO THE MARKET IS FED UP WITH THE FACT THAT NO ONE IN AUTHORITY SEEMS TO REALLY CARE THAT THE DOLLAR IS GOING DOWN DOWN DOWN HE SAID HE ADDED THAT THE PSYCHOLOGY OF DISAPPOINTMENT IN THE MARKET APPEARS TO DIMINISH SUPPORT FOR THE DOLLAR WHILE MAKING TALK ABOUT THE DOLLAR'S UPSIDE RESISTANCE SOMETHING OF A JOKE NEGATIVE DOLLAR SENTIMENT PARTICULARLY DURING NEW YORK TRADING TOOK THE DOLLAR TO AN INTRADAY LOW OF 10128 YEN A LEVEL LAST SEEN FEB 14 WHEN PESSIMISM OVER THE COLLAPSED BILATERAL TRADE TALKS TOOK THE CURRENCY DOWN AS FAR AS 101 YEN ITS LOWEST LEVEL THIS YEAR GABRIELE SCHMIDT A TRADER FOR THE BANK OF NEW YORK SAID THE ECONOMIC DATA PRECIPITATED THE DOLLAR'S SHARP DECLINE AGAINST EUROPEAN CURRENCIES BUT SHE NOTED THAT THE DOLLAR INITIALLY HELD FAIRLY FIRM AGAINST THE YEN ON TALK THAT THE BANK OF JAPAN WAS PREPARED TO INTERVENE HEAVILY AFTER BEING SIGHTED EARLIER IN ASIAN TRADING AT FAR HIGHER LEVELS AROUND 10240 YEN BUT THE INTERVENTION DIDN'T MATERIALIZE MS SCHMIDT SAID IN THE ABSENCE OF SIGNS OF SUPPORT FOR THE DOLLAR THE MARKET TOOK IT A LOT LOWER FOR THOMAS BENFER DIRECTOR OF FOREIGN EXCHANGE FOR THE BANK OF MONTREAL IN NEW YORK THE BOND MARKET COLLAPSE WAS ALMOST THE ENTIRE STORY FOR THE DOLLAR WHEN THE MARKET SEES BONDS REACTING ADVERSELY WHEN ALL THE DATA SHOULD SUPPORT THE BOND MARKET THE LACK OF CONFIDENCE IN BONDS SPILLS OVER TO A LACK OF CONFIDENCE IN THE DOLLAR HE SAID 9404290192 940429 INTERNATIONAL NORWEGIAN JOBLESS RATE DROPS COPENHAGEN NORWAY'S APRIL UNEMPLOYMENT RATE FELL TO 51 OF THE WORK FORCE FROM 54 THE MONTH BEFORE ACCORDING TO THE NORWEGIAN LABOR DIRECTORATE THE NUMBER OF JOBLESS PEOPLE FELL TO 108800 FROM 116110 IN MARCH 9404290191 940429 WHO'S NEWS BRUSH CREEK CEO SAYS HE MAY WORK FOR FREE IN NEW JOB COMPANY'S ROCKY RECORD SUGGESTS HE MAY DO SO BEFORE GOLD IS PANNED OUT BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL BRUSH CREEK MINING & DEVELOPMENT CO HAS A NEW CHIEF EXECUTIVE HE SAYS HE'S WILLING TO WORK FOR FREE GIVEN THE COMPANY'S HISTORY HE MIGHT HAVE TO JIM CHAPIN A FORMER STOCKBROKER WITH LITTLE OTHER CORPORATE EXPERIENCE EXCEPT AS A COMPUTER SALESMAN HAS BEEN ACTING HEAD OF BRUSH CREEK FOR ABOUT A MONTH AND IS EXPECTED TO BE FORMALLY NAMED CHIEF EXECUTIVE SOON PERHAPS AS EARLY AS TODAY HE WILL BECOME THE LATEST IN A SERIES OF EXECUTIVES WHO'VE TRIED TO MAKE SOMETHING OF BRUSH CREEK A PROMISING LITTLE GOLD MINING OUTFIT WITH A STARCROSSED PAST BRUSH CREEK GRASS VALLEY CALIF HAS NEVER TURNED AN OPERATING PROFIT SOME OF ITS TOP EXECUTIVES WERE KILLED IN A 1989 PLANE CRASH SEEMINGLY ON THE VERGE OF A BIG STRIKE IN THE RUSSIAN GOLD FIELDS A FEW YEARS AGO IT GOT MUSCLED OUT BY BIGGER COMPANIES AND ENDED UP COLLECTING A FRACTION OF WHAT IT ONCE PROJECTED IT HAS SEVERAL CALIFORNIA PROPERTIES REGARDED BY SOME ENGINEERS AS POTENTIAL BONANZAS BUT IT HAS REPEATEDLY NOT KEPT ITS PROMISES TO INVESTORS REGARDING PROFITS AND PRODUCTION AND HAS BEEN PLAGUED BY EQUIPMENT FAILURES AND OTHER MIXUPS MR CHAPIN 38 YEARS OLD KNOWS THIS AS A STOCKBROKER FOR BOSTONBASED TUCKER & ANTHONY HE SANK ABOUT 50000 OF HIS OWN MONEY INTO THE COMPANY SOLD OTHER SHARES TO HIS PARENTS AND STEERED OTHER CLIENTS TOWARD BRUSH CREEK THE RESULT I'VE LIVED AND DIED WITH THE STOCK WITH A HEAVY EMPHASIS ON DYING MR CHAPIN SAYS INDEED THE COMPANY'S MARKET CAPITALIZATION MORE THAN 100 MILLION A FEW YEARS AGO NOW SITS AT ABOUT 6 MILLION IN RECENT WEEKS ITS SHARES HAVE TUNNELED DOWN TO ABOUT 1 IN NASDAQ STOCK MARKET TRADING DOWN FROM A HIGH OF ABOUT 250 A FEW MONTHS AGO IT CLOSED YESTERDAY AT 125 DOWN 625 CENTS EVEN SO LIKE THE PROSPECTORS OF YORE MR CHAPIN HAS COME FROM BACK EAST WITH A GLEAM IN HIS EYE I'VE BOUGHT THE DREAM OF A BIG STRIKE HE SAYS AND INDEED THERE ARE SIGNS THAT BRUSH CREEK MAY SOME DAY PAN OUT ITS PROPERTIES INCLUDE PARTS OF THE OLD RUBY MINE A BIG PRODUCER IN THE GOLD RUSH DAYS BRUSH CREEK IS PUTTING IN A NEW PLACER MILL NEW DIGGING AND HAULING EQUIPMENT AND OTHER MODERN DAY TECHNIQUES THAT MR CHAPIN SAYS SHOULD ALLOW IT TO BRING OUT THE GOLD LEFT BEHIND BY THE PICKANDAX MINERS OF OLD SOME ENGINEERS ESTIMATE THAT 90 OF THE GOLD IN CALIFORNIA'S GOLD FIELDS IS STILL IN THE GROUND MR CHAPIN SAYS HE EXPECTS THE COMPANY TO TURN PROFITABLE ON A MONTHLY BASIS STARTING IN JUNE ALTHOUGH HE CAUTIONED THAT HE COULDN'T GUARANTEE THAT CURRENTLY BRUSH CREEK'S MINES ARE INACTIVE MEANWHILE HE WON'T TAKE ANY PAY IF WE'RE NOT MOVING THE MUCK AND GENERATING PRODUCTION I WON'T TAKE A PENNY HE SAID MR CHAPIN SUCCEEDS KURT KONING AN ACCOUNTANT AND LAWYER HIRED TO HEAD BRUSH CREEK ABOUT TWO YEARS AGO MR KONING COULDN'T BE REACHED TO COMMENT BUT HE RESIGNED ABOUT FIVE WEEKS AGO HE HAD COME UNDER FIRE FROM HOLDERS INCLUDING MR CHAPIN AND HIS CLIENTS BECAUSE OF PRODUCTION DELAYS 9404290190 940429 TECHNOLOGY AFFINITY AND BIOPHARM MERGE BLUE BELL PA AFFINITY BIOTECH INC SAID SHAREHOLDERS APPROVED THE COMPANY'S MERGER WITH BIOPHARM CLINICAL SERVICES INC AND THE MERGED COMPANY HAS CHANGED ITS NAME TO IBAH INC SHARES OF THE NEW COMPANY WILL TRADE UNDER THE SYMBOL IBAH ON THE NASDAQ STOCK MARKET THE MERGER TERMS GAVE BIOPHARM SHAREHOLDERS ABOUT A 64 INTEREST IN THE MERGED COMPANY THE COMPANY PROVIDES PRODUCT DEVELOPMENT SERVICES TO PHARMACEUTICAL BIOTECHNOLOGY MEDICAL DEVICE AND DIAGNOSTIC COMPANIES AND HAS ANNUAL SALES OF ABOUT 25 MILLION 9404290189 940429 INTERNATIONAL FRANCE'S GROSS DOMESTIC PRODUCT PARIS FRANCE'S FOURTHQUARTER GROSS DOMESTIC PRODUCT ROSE 01 FROM A YEAR EARLIER THE NATIONAL INSTITUTE FOR STATISTICS AND ECONOMIC STUDIES SAID THIS IS A DOWNWARD REVISION OF AN EARLIER ESTIMATE OF A 02 INCREASE THE INSTITUTE EARLIER THIS WEEK SAID GROSS DOMESTIC PRODUCT WAS DOWN 1 IN ALL OF 1993 REVISED FROM A 07 DECREASE THE 01 RISE IN THE FOURTH QUARTER FOLLOWED A 03 ADVANCE IN THE THIRD QUARTER THE INSTITUTE SAID 9404290188 940429 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED APRIL 22 ACCOUNTED FOR 92 OR AN AVERAGE 301 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 425 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 443 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 606 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AND 377 FOR THEIR CUSTOMERS ANOTHER 17 WAS CUSTOMER FACILITATION IN WHICH FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES COOPER NEFF AND UBS SECURITIES EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE SALOMON BROTHERS AND MORGAN STANLEY DID MOST OF THEIR TRADING FOR THEIR CUSTOMERS 9404290187 940429 WHAT'S NEWS BUSINESS AND FINANCE THE ECONOMY EXPANDED AT A SURPRISINGLY SLOW 26 ANNUAL RATE IN THE FIRST QUARTER SUGGESTING IT IS NOWHERE NEAR OVERHEATING AS SOME MARKET PARTICIPANTS HAVE FEARED THE GROWTH WAS MUCH SLOWER THAN THE 7 FOURTHQUARTER PACE AND WAS LESS THAN THE 35 ECONOMISTS EXPECTED BUT BROAD INFLATION MEASURES SHOWED ACCELERATING INCREASES OVER THE QUARTER STOCKS SLID ON THE PROSPECTS OF SLOW GROWTH AND RENEWED INFLATION AND THE DOLLAR FELL SHARPLY THE DOW JONES INDUSTRIALS TUMBLED 3123 TO 366831 THE PRICE OF THE 30YEAR TREASURY BOND FELL 1 3/4 POINTS ITS YIELD ROSE TO 726 THE TEAMSTERS AND 20 TRUCKING COMPANIES AGREED TO SETTLE THEIR THREEWEEKOLD STRIKE WITH A FOURYEAR ACCORD THAT SHOULD ENABLE STALLED SHIPMENTS TO BEGIN MOVING BY TOMORROW DELTA AIR LINES SAID IT WILL ELIMINATE UP TO 15000 JOBS OR 20 OF ITS WORK FORCE IN ONE OF THE MOST AGGRESSIVE AND SWEEPING RESTRUCTURING PLANS IN THE EMBATTLED AIRLINE INDUSTRY THE WHITE HOUSE DECIDED AGAINST PURSUING TRADE SANCTIONS OVER TOKYO'S GOVERNMENTPROCUREMENT PRACTICES VIACOM AND TELECOMMUNICATIONS ARE IN TALKS THAT COULD PRODUCE BROAD TIES BETWEEN THE BIG CABLETV PROGRAMMER AND THE CABLETV OPERATOR AT&T AND A TEAM OF SUPPLIERS ARE IN FINAL NEGOTIATIONS TO EQUIP BELL ATLANTIC'S MULTIBILLIONDOLLAR MULTIMEDIA NETWORK ACCORDING TO PEOPLE FAMILIAR WITH BELL ATLANTIC'S PLANS AT&T AGREED WITH THE CHINESE GOVERNMENT TO INVEST MORE THAN 150 MILLION IN JOINT VENTURES IN EQUIPMENT TECHNOLOGY AND NETWORK PLANNING GM'S PROFIT LEAPED 66 IN THE FIRST QUARTER BUOYED BY SURGING US CAR SALES AND IMPROVED OVERSEAS RESULTS THE FED CLEARED SHAWMUT'S APPLICATION TO BUY NEW DARTMOUTH BANK AFTER FINDING SIGNIFICANT IMPROVEMENT IN SHAWMUT'S FAIRLENDING RECORD MUTUALFUND INVESTORS PULLED 77 BILLION OUT OF BOND FUNDS IN MARCH THE HEAVIEST MONTHLY WITHDRAWAL SINCE OCTOBER 1987 AND THE OUTFLOWS APPARENTLY HAVE CONTINUED IN APRIL KEMPER SAID FOR THE FIRST TIME THAT IT IS WILLING TO DISCUSS A MERGER WITH GE CAPITAL BUT WANTS A HIGHER BID PRUDENTIAL INSURANCE CONCEDED IT INFLATED THE VALUE OF TWO REALESTATE FUNDS IT SOLD TO PENSION FUNDS GENERAL NUTRITION AGREED TO PAY 24 MILLION AND STOP MAKING UNSUBSTANTIATED PRODUCT CLAIMS IN THE FTC'S LARGEST FALSEAD SETTLEMENT DISNEY NAMED DAVID HOBERMAN TO THE NEW POST OF PRESIDENT OF MOTION PICTURES FOR WALT DISNEY STUDIOS REFLECTING A CHANGE IN STRATEGY MORGAN STANLEY PAID ITS TWO TOP OFFICERS MORE THAN 10 MILLION APIECE IN 1993 ACCORDING TO A PROXY STATEMENT LAST YEAR'S COMPENSATION PACKAGES FOLLOWED AN UNUSUAL CUT IN PAY FOR MORGAN SENIOR EXECUTIVES IN 1992 SOUTH KOREA'S SAMSUNG HEAVY INDUSTRIES ANNOUNCED A TECHNOLOGY TIEUP WITH JAPAN'S NISSAN TO BUILD CARS BY EARLY 1998 IN A 44 BILLION VENTURE THE NEWS RATTLED SOUTH KOREA'S CAR MAKERS AND ANGERED AIDES OF PRESIDENT KIM WHO ARE ENCOURAGING CONSOLIDATION OF SOUTH KOREAN CONGLOMERATES JOHNSON & JOHNSON'S EARNINGS ROSE 82 FOR THE FIRST QUARTER DRIVEN BY A 16 INCREASE IN THE HEALTHCARE GIANT'S DOMESTIC PHARMACEUTICAL BUSINESS SALES ROSE 37 TO 369 BILLION MOLECULAR BIOSYSTEMS RECEIVED PRELIMINARY FDA APPROVAL TO MARKET ITS CARDIAC ULTRASOUND IMAGING AGENT ITS STOCK JUMPED 2 OR 13 TO 18 BONDS LEHMAN BROTHERS TREASURY INDEX 513865 OFF 7878 COMMODITIES OIL 1657 A BARREL OFF 34 CENTS DOW JONES FUTURES INDEX 13712 UP 207 SPOT INDEX 13171 UP 104 DOLLAR 10130 YEN OFF 105 16623 MARKS OFF 001 9404290186 940429 WHO'S NEWS SWISS REINSURANCE OUSTS AW SAXER AS CHIEF EXECUTIVE BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL IN A RARE SWISS BOARDROOM BATTLE SWISS REINSURANCE CO OUSTED ITS CHIEF EXECUTIVE ARNOLD W SAXER AND REPLACED HIM WITH A 43YEAROLD GRADUATE OF HARVARD BUSINESS SCHOOL WHO HAS NO DIRECT WORK EXPERIENCE IN AN INSURANCE COMPANY SWISS RE THE SECONDLARGEST REINSURER IN THE WORLD AND THE PARENT OF AMERICAN REINSURANCE CORP SAID LUKAS MUEHLEMANN WILL TAKE OVER AS CHIEF EXECUTIVE ON SEPT 1 AND IS EXPECTED TO OVERSEE THE DEVELOPMENT OF A NEW CORPORATE STRATEGY MR MUEHLEMANN HAS SERVED AS MCKINSEY & CO'S MANAGING DIRECTOR FOR SWITZERLAND SINCE 1989 BEFORE JOINING MCKINSEY HE WORKED AS A SYSTEMS ENGINEER AT INTERNATIONAL BUSINESS MACHINES CORP THE OUSTER MARKS A SHARP BREAK WITH THE SWISS TRADITION OF BOARDROOM DOCILITY AND PARTICULARLY WITH THE STAID CORPORATE CULTURE OF SWISS RE WHICH HAS ALWAYS RECRUITED ITS TOP OFFICERS FROM WITHIN THE COMPANY MR SAXER TOOK OVER AS CHIEF EXECUTIVE JUST THREE YEARS AGO AND AT 59 IS STILL SEVERAL YEARS AWAY FROM HIS EXPECTED RETIREMENT DATE HE IS BEING DROPPED FROM THE BOARD ALTOGETHER BUT A COMPANY STATEMENT SAID HE IS EXPECTED TO HEAD ONE OF SWISS RE'S DIRECTINSURANCE SUBSIDIARIES ELVIA INSURANCE CO HE APPARENTLY FELL AFOUL OF THE NEW CHAIRMAN OF THE SUPERVISORY BOARD ULRICH BREMI A FORMER POLITICIAN AND SELFMADE BUSINESSMAN WHO OWNS A COMPANY THAT MAKES SAFES COMPANY OFFICIALS DECLINED TO GIVE DETAILS BUT PEOPLE FAMILIAR WITH THE SITUATION SAY THAT MR BREMI DIDN'T GET ON PERSONALLY WITH MR SAXER WHO IS RIGOROUS BUT AT TIMES OVERLY METICULOUS AND THAT THE TWO MEN DIFFERED ABOUT CORPORATE STRATEGY MR SAXER TOOK OVER AT SWISS RE AFTER A STRING OF COSTLY FINANCIAL MISHAPS IN THE 1980S INCLUDING A DISASTROUS POLICY OF DIVERSIFYING AWAY FROM INSURANCE AND HE QUICKLY SET ABOUT OVERHAULING THE COMPANY ALTHOUGH HIS STRATEGY INITIALLY WON PLAUDITS SOME ANALYSTS SAY THEY WERE CONCERNED ABOUT A LACK OF A CLEAR LONGTERM VISION A VIEW APPARENTLY SHARED BY SOME SUPERVISORYBOARD MEMBERS AT A RECENT MEETING FOR INSURANCE ANALYSTS IN ZURICH SOME TOP OFFICIALS EVEN CONTRADICTED EACH OTHER ON THE COMPANY'S EXPECTED LONGTERM RATE OF RETURN IN COMMON WITH MOST BIG EUROPEAN REINSURANCE COMPANIES SWISS RE'S STOCK HAS FALLEN SHARPLY THIS YEAR ON SIGNS THAT A PROMISED RECOVERY IN THE REINSURANCE BUSINESS WHICH IN EFFECT INSURES OTHER INSURANCE COMPANIES WON'T BE AS STRONG AS HOPED SWISS RE STOCK CLOSED ON THE ZURICH MARKET YESTERDAY AT 656 FRANCS 46051 UP ONE FRANC AMERICAN RE CORP PARENT OF AMERICAN REINSURANCE CO PRINCETON NJ ISN'T A UNIT OF SWISS REINSURANCE CO OF SWITZERLAND AS ERRONEOUSLY STATED IN AN ARTICLE FRIDAY SWISS RE OWNS NORTH AMERICAN REINSURANCE CORP 9404290185 940429 SMALL STOCK FOCUS INFLATION FEARS WORRY MANY INVESTORS BUT STOCKS END THE DAY SLIGHTLY HIGHER BY CAITLIN MOLLISON AND SCOTT REEVES SPECIAL TO THE WALL STREET JOURNAL NEW YORK INFLATION WORRIES GRIPPED MANY INVESTORS BUT SMALLCOMPANY STOCKS ESCAPED THE SELLING TO END MODESTLY HIGHER THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION STOCKS CRUISED UP 036 OR 014 TO 25131 ON THE NASDAQ STOCK MARKET THE COMPOSITE INDEX FINISHED DOWN 252 OR 034 TO 73169 AFTER BOUNCING AROUND SOMEWHAT BUT THE DOW JONES INDUSTRIAL AVERAGE SKIDDED 3123 POINTS TO ABOUT 366831 AS INTEREST RATES ROCKETED HIGHER THE LONG BOND SANK ABOUT 1 3/4 POINTS SHOOTING ITS YIELD UP TO 726 GOVERNMENT SECURITIES WERE ROUTED ON INCREASES IN THE INFLATION COMPONENTS OF THE FIRSTQUARTER GROSS DOMESTIC PRODUCT REPORT SCICLONE PHARMACEUTICALS SAN MATEO CALIF FELL TO AN ALLTIME LOW DROPPING 7 9/16 OR 593 TO 5 3/16 THE COMPANY'S LEAD PRODUCT CANDIDATE THYMOSIN ALPHA 1 FAILED TO OUTPERFORM A PLACEBO IN THE TREATMENT OF CHRONIC HEPATITIS B SCICLONE TOPPED THE NASDAQ MOSTACTIVES LIST WITH VOLUME OF 87 MILLION SHARES ON AVERAGE 246600 SHARES CHANGE HANDS DAILY SOME MARKET WATCHERS SAID THAT IN THE CURRENT RATE ENVIRONMENT IT'S NOT SURPRISING THAT BONDS CONTINUE TO SLIDE IT'S LESS OF A DISASTER THAN WE MIGHT HAVE EXPECTED SAID DENNIS MURRAY HEAD OF OVERTHECOUNTER TRADING AT DAIN BOSWORTH INC MOST US FINANCIAL MARKETS WERE CLOSED WEDNESDAY IN OBSERVANCE OF A NATIONAL DAY OF MOURNING FOR FORMER PRESIDENT RICHARD M NIXON WHO DIED FRIDAY SMALLER STOCKS TYPICALLY FARE BETTER IN PERIODS OF STRONG ECONOMIC GROWTH SAID SATYA D PRADHUMAN A VICE PRESIDENT AND A SENIOR QUANTITATIVE ANALYST AT MERRILL LYNCH & CO AS LONG AS THE ECONOMY'S NOT CONTRACTING THAT'S WHEN SMALL STOCKS WILL DO BETTER HE ADDED SMALL COMPANY EARNINGS ARE TIED TO THE ECONOMY'S PERFORMANCE SO THEY TEND TO BE ULTRASENSITIVE TO SHIFTS IN ECONOMIC DATA THE ANALYST SAID ALTHOUGH INFLATION IS GOOD FOR NOTHING MR PRADHUMAN SAID PEOPLE ARE BEGINNING TO ACCEPT THAT THE ECONOMY IS GROWING FASTER IN INDIVIDUAL COMPANY ACTION MANY STOCKS MOVED HIGHER AFTER SOLID CORPORATE EARNINGS REPORTS ELSAG BAILEY PROCESS AUTOMATION CLIMBED 1 7/8 TO 22 5/8 ON THE BIG BOARD THE DUTCH COMPANY POSTED FIRSTQUARTER EARNINGS OF 24 CENTS A SHARE COMPARED WITH AN OPERATING LOSS OF FOUR CENTS IN THE SAME PERIOD LAST YEAR WERTHEIM SCHRODER & CO RAISED ITS RATING ON ELSAG BAILEY TO BUY FROM HOLD TRICO PRODUCTS BASED IN BUFFALO NY RALLIED 3 1/2 TO 19 THE AUTOMOTIVE PARTS COMPANY SAID ITS FIRSTQUARTER NET INCOME IMPROVED TO 111 A SHARE FROM 38 CENTS LAST YEAR ACME METALS SHOT 3 1/4 UP TO 25 1/2 THE RIVERDALE ILL MAKER OF STEEL PRODUCTS POSTED SHARPLY HIGHER FIRSTQUARTER EARNINGS OF 64 CENTS A SHARE FROM TWO CENTS A YEAR EARLIER GUPTA ADDED 1 1/2 TO 15 THE MENLO PARK CALIF SOFTWARE COMPANY SAID WEDNESDAY THAT IT IS ON TARGET TO POST REVENUES OF 20 MILLION TO 22 MILLION FOR THE SECOND QUARTER THE DAY'S BIG DECLINER WAS ALPHA 1 BIOMEDICALS DOWN A STUNNING 2 OR 677 TO 4 3/16 THE BETHESDA MD COMPANY SUPPLIES THYMOSIN TO SCICLONE OTHER DECLINERS INCLUDED TECHNICAL COMMUNICATIONS WHICH SLID 1 1/2 TO 7 AFTER REPORTING WEDNESDAY A FISCAL SECONDQUARTER LOSS OF 52 CENTS A SHARE IN THE YEAREARLIER PERIOD THE CONCORD MASS MAKER OF COMMUNICATIONS SECURITY DEVICES HAD AN EVEN WIDER LOSS OF 60 CENTS BELL SPORTS A RANTOUL ILL MAKER OF BICYCLE HELMETS DROPPED 5 1/4 TO 30 ON CONCERNS ABOUT TIGHTENING PROFIT MARGINS ALTHOUGH THE COMPANY POSTED IMPROVED FISCAL THIRDQUARTER NET INCOME OF 33 CENTS A SHARE LATE TUESDAY UP FROM 21 CENTS A YEAR EARLIER CONCERNS OVER EARNINGS GROWTH HURT THE STOCK KURZWEIL APPLIED INTELLIGENCE WALTHAM MASS PLUMMETED 4 3/4 OR 543 TO 4 THE COMPANY SAID IT WILL DELAY REPORTING ITS FISCAL 1994 RESULTS WHILE MANAGEMENT AND AUDITORS REVIEW PART OF KURZWEIL'S REVENUE RECOGNITION POLICIES AND PRACTICES AS WELL AS THE COLLECTABILITY OF CERTAIN ACCOUNTS RECEIVABLE QUANTUM HEALTH RESOURCES SLID 5 1/4 TO 31 1/8 DESPITE WEDNESDAY'S ANNOUNCEMENT THAT FIRSTQUARTER EARNINGS JUMPED TO 31 CENTS A SHARE FROM 21 CENTS A YEAR EARLIER NET INCOME FOR THE LATEST PERIOD MATCHED ANALYSTS' EXPECTATIONS BUT SMITH BARNEY SHEARSON INC CUT ITS RATING ON ORANGE CALIFBASED QUANTUM TO NEUTRAL FROM OUTPERFORM ISIS PHARMACEUTICALS CARLSBAD CALIF ADDED 1 TO 8 1/8 THE COMPANY SAID ITS DRUG TO TREAT CYTOMEGALOVIRUSINDUCED RETINITIS IN AIDS PATIENTS PRODUCED POSITIVE RESULTS IN A 10PATIENT TRIAL IN OTHER NEWS AGCO GAINED 5 3/8 TO 42 ON THE NEW YORK STOCK EXCHANGE ON WEDNESDAY THE NORCROSS GA FARM EQUIPMENT MAKER AGREED TO ACQUIRE MASSEY FERGUSON GROUP FROM VARITY IN A CASH AND STOCK DEAL VALUED AT ABOUT 328 MILLION VARITY BUFFALO NY SLIPPED 3/8 TO 39 1/2 ON THE BIG BOARD AN UPGRADE FROM MERRILL LYNCH & CO ANALYST MAUREEN MCGANN LIFTED CLASS A SHARES OF BIORAD LABORATORIES'S STOCK PRICE 2 3/8 TO 17 1/4 ON THE AMERICAN STOCK EXCHANGE MS MCGANN RAISED HER INTERMEDIATETERM RECOMMENDATION ON THE HERCULES CALIF MAKER OF LIFE SCIENCE RESEARCH PRODUCTS CLINICAL DIAGNOSTICS AND ANALYTICAL INSTRUMENTS TO ABOVE AVERAGE FROM NEUTRAL AND INCREASED 1994 AND 1995 EARNINGS PROJECTIONS BIG BOARDTRADED MOLECULAR BIOSYSTEMS JUMPED 2 TO 18 THE SAN DIEGO COMPANY SAID IT HAS RECEIVED AN APPROVABLE LETTER FROM THE FOOD AND DRUG ADMINISTRATION FOR ALBUNEX A CONTRAST IMAGING AGENT FOR USE WITH ULTRASOUND 9404290184 940429 WHO'S NEWS APOGEE ENTERPRISES INC APOGEE ENTERPRISES INC MINNEAPOLIS HARRY ALLAN HAMMERLY 60 YEARS OLD EXECUTIVE VICE PRESIDENT OF THE LIFE SCIENCES SECTOR AND INTERNATIONAL OPERATIONS OF MINNESOTA MINING & MANUFACTURING CO WAS ELECTED TO THE BOARD OF DIRECTORS OF THIS FABRICATOR DISTRIBUTOR AND INSTALLER OF GLASS AND ALUMINUM HE FILLS A VACANCY 9404290183 940429 EPA TO REWARD TIPSTERS IN CLEANAIR LAW CASES WASHINGTON THE GOVERNMENT IS SETTING UP A SYSTEM OF CASH REWARDS FOR PEOPLE WHO TURN IN COMPANIES FOR VIOLATING CLEANAIR LAWS UNDER A RULE PROPOSED BY THE ENVIRONMENTAL PROTECTION AGENCY INDIVIDUALS COULD PETITION THE EPA FOR CASH BOUNTIES AS HIGH AS 10000 FOR COMPLAINTS THAT RESULTED IN AN ADMINISTRATIVE OR COURT PENALTY OF EITHER A CIVIL OR CRIMINAL TYPE THE AMOUNT OF THE BOUNTY WOULD DEPEND ON A VARIETY OF FACTORS INCLUDING HOW IMPORTANT THE INFORMATION WAS TO A PARTICULAR CASE AND WHETHER THE TIPSTER WAS CALLED UPON TO TESTIFY THE EPA ALREADY OFFERS CASH BOUNTIES UP TO 10000 FOR TIPS REGARDING VIOLATIONS OF THE SUPERFUND HAZARDOUSWASTE LAW AND SIMILAR PROGRAMS EXIST AT THE INTERNAL REVENUE SERVICE AND THE INTERIOR DEPARTMENT'S FISH AND WILDLIFE SERVICE THE AGENCY WILL CONSIDER COMMENTS FROM THE PUBLIC BEFORE MAKING THE PROGRAM FINAL 9404290182 940429 WHO'S NEWS DELTA AIR LINES DELTA AIR LINES ATLANTA ANDREW YOUNG WAS ELECTED A DIRECTOR INCREASING THE NUMBER OF BOARD MEMBERS TO 12 MR YOUNG 62 YEARS OLD IS VICE CHAIRMAN OF LAW INTERNATIONAL AN ENVIRONMENTAL AND ENGINEERING CONSULTING FIRM IN ATLANTA MR YOUNG HAS ALSO SERVED AS A US CONGRESSMAN US AMBASSADOR TO THE UNITED NATIONS AND MAYOR OF ATLANTA 9404290181 940429 WHO'S NEWS TBC CORP TBC CORP MEMPHIS TENN LOUIS S DIPASQUA 59 YEARS OLD WILL BE NAMED CHIEF EXECUTIVE OF THIS AUTOMOTIVE PRODUCTS COMPANY FOLLOWING THE RETIREMENT OF MARVIN E BRUCE 65 JULY 1 MR BRUCE WILL REMAIN CHAIRMAN MR DIPASQUA HAS BEEN PRESIDENT AND CHIEF OPERATING OFFICER SINCE 1991 9404290180 940429 SEC CHINESE REGULATORS SIGN PACT ON COOPERATION WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION HAS SIGNED A MEMORANDUM OF UNDERSTANDING WITH CHINESE SECURITIES REGULATORS THAT FORMALIZES COOPERATION BETWEEN THE TWO NATIONS' SECURITIES REGULATORS THE AGREEMENT AMONG OTHER THINGS CALLS FOR INFORMATIONSHARING AGREEMENTS ON SECURITIES REGULATION AND ENFORCEMENT AND SETS UP A FRAMEWORK FOR THE SEC TO HELP THE CHINESE SECURITIES REGULATORY COMMISSION DEVELOP ITS SECURITIES MARKETS I AM COMMITTED TO WORKING WITH COUNTRIES AND COMPANIES ACROSS THE GLOBE TO BE SENSITIVE TO THEIR NEEDS WHILE ALWAYS GUARDING THE FUNDAMENTAL INTEGRITY AND EFFICIENCY OF OUR OWN PUBLIC MARKETS SEC CHAIRMAN ARTHUR LEVITT SAID THE AGREEMENT SIGNED AT THE GREAT HALL OF THE PEOPLE IN BEIJING COMES OUT OF TALKS THAT BEGAN IN LATE 1992 9404290179 940429 GM EARNINGS ROSE 66 IN FIRST PERIOD DESPITE CONCERNS OVER DOMESTIC PROFITS BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT BUOYED BY SURGING US AUTO SALES AND IMPROVED OVERSEAS RESULTS GENERAL MOTORS CORP'S NET INCOME LEAPED 66 IN THE FIRST QUARTER BUT THE AUTO MAKER ACKNOWLEDGED THAT ITS DOMESTIC VEHICLE OPERATIONS REMAIN FAR FROM THEIR PROFITABILITY GOALS EXCLUDING A 758 MILLION CHARGE TO REFLECT THE COST OF CERTAIN BENEFITS FOR FORMER EMPLOYEES GM POSTED A PROFIT FROM OPERATIONS OF 161 BILLION ITS BEST QUARTERLY SHOWING IN A DECADE INCLUDING THE CHARGE GM EARNED 8537 MILLION OR 81 CENTS A SHARE IN THE LATEST QUARTER COMPARED WITH 5132 MILLION OR 42 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 85 TO 375 BILLION GM PRESIDENT JOHN F SMITH JR SAID IN A STATEMENT THAT NORTH AMERICAN OPERATIONS ARE ON TRACK TO TURN A FULLYEAR PROFIT FOR 1994 DESPITE LOSING 197 MILLION AFTER THE CHARGE IN THE LATEST QUARTER GM'S RESULTS ADJUSTED FOR A LOWER TAX RATE IN THE LATEST QUARTER DIDN'T OUTPERFORM ANALYSTS' EXPECTATIONS AND THE PRICE OF GM SHARES FELL SHORTLY AFTER THE EARLY MORNING ANNOUNCEMENT BUT THE STOCK RECOVERED LATER AFTER GM SAID ITS GROSS PROFIT MARGINS HAD IMPROVED TO 182 FROM 146 INDICATING THAT COSTCUTTING MEASURES ARE TAKING HOLD GM CLOSED AT 5675 UNCHANGED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING IT WAS A GREAT QUARTER SAID DONALDSON LUFKIN & JENRETTE ANALYST WENDY NEEDHAM BUT THE CHOPPY TRADING HIGHLIGHTED CONTINUING INVESTOR UNCERTAINTY ABOUT GM WHILE THE NO 1 AUTO MAKER CLEARLY IS MUCH IMPROVED FROM TWO YEARS AGO IT STILL APPEARS TO BE LAGGING IN ITS EFFORT TO CASH IN FULLY ON THE US ECONOMIC RECOVERY SOME ANALYSTS EXPRESSED CONCERN THAT GM CHIEF FINANCIAL OFFICER G RICHARD WAGONER WAS VAGUE IN COMMENTS YESTERDAY ABOUT HOW AGGRESSIVELY THE AUTO MAKER WILL PUSH THIS YEAR TO FURTHER SHRINK AND RESTRUCTURE ITS UNDERPERFORMING NORTH AMERICAN VEHICLE BUSINESS THE BASIC STRATEGIC DIRECTION IS EASY MR WAGONER SAID IMPLEMENTATION ISN'T SO EASY EXCLUDING THE SPECIAL CHARGE GM'S NORTH AMERICAN VEHICLE OPERATIONS EARNED 511 MILLION IN THE FIRST QUARTER OR ABOUT 21 CENTS FOR EVERY 1 IN SALES THAT IS LESS THAN HALF THE PROFIT MARGIN GM SHOULD HAVE AT THIS STAGE OF A RECOVERY MR WAGONER SAID BUT HE WOULDN'T SAY WHEN GM EXPECTS TO ACHIEVE MR SMITH'S GOAL OF RETURNING FIVE CENTS IN PROFIT FOR EVERY 1 IN NORTH AMERICAN VEHICLE SALES THE RISK IS THAT THE RECOVERY WILL PEAK BEFORE GM DOES US VEHICLE SALES RAN AT A BLISTERING 16 MILLION ANNUAL PACE DURING THE JANUARY TO MARCH PERIOD BUT ECONOMISTS DON'T EXPECT THAT PACE TO CONTINUE AS INTEREST RATES RISE GM YESTERDAY OFFICIALLY RAISED ITS FULLYEAR FORECAST FOR INDUSTRYWIDE US VEHICLE SALES TO 153 MILLION FROM 149 MILLION BUT IN THE NEAR TERM GM MAY LOSE SALES BECAUSE SLOW PRODUCTION LAUNCHES FOR NEW MODELS LIKE THE CHEVROLET LUMINA SEDAN AND BLAZER SPORT UTILITY VEHICLE WILL LEAVE DEALERS SHORT OF STOCK MR WAGONER SAID MR WAGONER INDICATED GM FORESEES NO MAJOR REDUCTIONS IN ITS DOMESTIC WORK FORCE THIS YEAR AFTER SHEDDING 34200 JOBS LAST YEAR GM HAD SET A GOAL OF TRIMMING ITS DOMESTIC WHITE COLLAR WORK FORCE TO 69000 BY YEAR END FROM ABOUT 71000 NOW BUT THAT WILL BE A STRETCH MR WAGONER SAID HE SAID GM'S US HOURLY WORK FORCE CURRENTLY NUMBERING ABOUT 250000 WILL LIKELY FINISH THE YEAR AT ABOUT 245000 GM IS HIRING TEMPORARY HOURLY WORKERS AT SOME PLANTS EVEN THOUGH THERE ARE MORE THAN 8000 LAIDOFF US HOURLY WORKERS DRAWING VIRTUALLY FULL PAY TO STAY HOME GM HAS PLUCKED MOST OF THE LOWHANGING FRUIT IN ITS EFFORT TO CUT PURCHASING COSTS IN THE NEAR TERM SAID MR WAGONER WHO DOUBLES AS GM'S PURCHASING CHIEF GM STILL EXPECTS MAJOR COST REDUCTIONS FOR FUTURE MODELS BY SLASHING THE PROLIFERATION OF PARTS BUT THOSE EFFORTS WON'T HAVE A BIG IMPACT UNTIL 1996 OR 1997 HE SAID IT SEEMS AS THOUGH COST REDUCTIONS IN MATERIALS AND PRODUCTIVITY ARE BEING OFFSET BY COST INCREASES IN ENGINEERING HEALTH CARE AND PENSIONS SAID PAINEWEBBER ANALYST STEPHEN GIRSKY GM EARNED 450 PER VEHICLE WORLDWIDE DURING THE FIRST QUARTER EXCLUDING THE CHARGE COMPARED WITH A LOSS OF 15 PER VEHICLE A YEAR EARLIER GM'S INTERNATIONAL AUTO OPERATIONS EARNED 425 MILLION OR 662 PER VEHICLE UP FROM 141 MILLION OR 223 PER VEHICLE A YEAR EARLIER GM EUROPE SHOWED IMPROVED RESULTS AMID A SMALL IMPROVEMENT IN THE OVERALL MARKET WHILE SALES IN BRAZIL CONTINUED TO BOOM MR WAGONER SAID BUT GM'S NET INCOME PER VEHICLE LAGGED WELL BEHIND THE 1265 PER VEHICLE THAT CHRYSLER CORP EARNED IN THE LATEST PERIOD MUCH OF GM'S IMPROVEMENT IN NORTH AMERICAN VEHICLE PROFITS APPEARED TO STEM FROM HIGHER PRICES INCLUDING A 150 PER VEHICLE CUT IN DISCOUNTS AND A 66 INCREASE IN SALES VOLUME MEANWHILE GM'S BALANCE SHEET CONTINUED TO SHOW SCARS FROM THE BEATING ABSORBED IN THE RECENT RECESSION GM'S OPERATIONS EXCLUDING ITS FINANCE ARM ENDED THE FIRST QUARTER WITH 14 BILLION LESS CASH THAN THEY STARTED WITH PARTLY BECAUSE THE COMPANY PUMPED 19 BILLION INTO ITS UNDERFUNDED PENSION TRUSTS GM'S CASH DRAIN ALSO REFLECTED HIGHER INVENTORIES RELATED TO MAJOR NEW MODEL LAUNCHES IN NORTH AMERICA AND EUROPE A COMPANY SPOKESMAN SAID GM HAD 832 BILLION IN CASH AS OF MARCH 31 DOWN FROM 976 BILLION ON JAN 1 BUT UP FROM 775 BILLION ON MARCH 31 1993 9404290178 940429 ADELPHIA EXTENDS DATE ON OFFER COUDERSPORT PA ADELPHIA COMMUNICATIONS A MULTIPLE CABLETV SYSTEMS OPERATOR SAID IT EXTENDED BY FIVE DAYS THE EXPIRATION DATE OF ITS EXCHANGE OFFER INVOLVING 150 MILLION AGGREGATE PRINCIPAL AMOUNT OF 9 1/2 SENIOR PAYINKIND NOTES DUE 2004 THE DATE WAS EXTENDED TO 5 PM MAY 4 FROM APRIL 29 IN THE EXCHANGE OFFER ADELPHIA IS OFFERING NEW 9 1/2 SENIOR PAYINKIND NOTES DUE 2004 SERIES B FOR OUTSTANDING 9 1/2 SENIOR PAYINKIND NOTES DUE 2004 SERIES A WHICH WERE PRIVATELY PLACED TO QUALIFIED INSTITUTIONAL INVESTORS 9404290177 940429 LEISURE & ARTS MUSIC A LOSS LAUNCHES A CAREER BY BARBARA JEPSON NEW YORK EVER SINCE FRANZ LISZT AND A LEADING KEYBOARD RIVAL SQUARED OFF IN A PIANO DUEL AT THE SALON OF A PARISIAN SOCIALITE PIANISTS HAVE ENTERED VARIOUS CONTESTS TO ADVANCE THEIR CAREERS BUT THESE DAYS WITH SO MANY INSTITUTIONALLY SPONSORED COMPETITIONS SPEWING OUT EASILY FORGETTABLE WINNERS ARTISTS MAY GAIN MORE MILEAGE OUT OF LOSING A CASE IN POINT PIANIST FREDERIC CHIU WHOSE FAILURE TO ADVANCE PAST THE SEMIFINALS AT THE VAN CLIBURN COMPETITION LAST SUMMER MADE HEADLINES THE 29YEAROLD CHINESEAMERICAN WAS ANYTHING BUT FORGETTABLE WHILE THE MAJORITY OF THE CONTESTANTS PLAYED STANDARD REPERTORY IN THE PRELIMINARIES MR CHIU WON CRITICAL KUDOS FOR A PROGRAM CONSISTING LARGELY OF TRANSCRIPTIONS NORMALLY SHUNNED OR RELEGATED TO ENCORE STATUS AT CONCERTS INCLUDING THE NOTORIOUSLY KITSCHY SCHULZEVLER KEYBOARD ARRANGEMENT OF BLUE DANUBE AFTERWARD SOME OBSERVERS WONDERED IF HE WAS DELIBERATELY TRYING TO BE PROVOCATIVE TO SET HIMSELF APART FROM THE PACK IT WASN'T A DELIBERATE CHOICE SAYS THE SOFTSPOKEN PIANIST EXCEPT TO BE WHO I AM AND DO WHAT I ALREADY DO ALTHOUGH I RECOGNIZE THAT WHAT I DO IS VERY DIFFERENT FROM THE NORMAL CONCERT OFFERING INDEED MR CHIU'S FIRST DISK FOR THE AUDIOPHILE LABEL HARMONIA MUNDI WAS AN ALLTRANSCRIPTION PROGRAM RECORDED IN 1991 AND HE HAS PLAYED ALLTRANSCRIPTION PROGRAMS OR ONECOMPOSER PROGRAMS IN EUROPE WHERE HE HAS CARVED A MODEST NICHE FOR HIMSELF AS A PIANIST OF SINGULAR TASTES BUT HE LACKED VISIBILITY IN THE STATES SO HE DECIDED TO ENTER THE VAN CLIBURN AFTER THE COMPETITION WAS OVER JUILLIARD BESTOWED UPON HIM ITS PETSCHEK AWARD WHICH PROVIDES AN EXPENSEPAID DEBUT HERE AT ALICE TULLY HALL FOR A WORTHY ADVANCED STUDENT OR GRADUATE IF I HADN'T ENTERED THE VAN CLIBURN NOTES MR CHIU WHO RECENTLY GAVE HIS PETSCHEK RECITAL JUILLIARD WOULD PROBABLY HAVE PICKED SOMEONE ELSE AND I WOULDN'T HAVE GIVEN MY NEW YORK DEBUT UNDER THE CONDITIONS I DID INTERESTINGLY ENOUGH MR CHIU'S JUILLIARD DAYS WERE NOT MARKED BY ANY OF THE COMPETITION VICTORIES OR INHOUSE AWARDS THAT SIGNAL A STAR IN THE MAKING MOREOVER HIS ATTEMPTS TO OBTAIN CONCERT DATES OR AN AGENT'S BACKING AFTER EARNING HIS MASTER'S DEGREE HAD PROVED FRUITLESS MY WHOLE TIME IN NEW YORK RECALLS THE PIANIST WAS ONE BIG FRUSTRATION A TURNING POINT OCCURRED IN 1987 AFTER AN INVITATION TO GIVE A RECITAL AT THE SALLE CORTOT IN PARIS I WAS BOWLED OVER BY LIFE THERE HE SAYS I FELT AT HOME SO I PACKED MY BAGS AND MOVED THERE A FEW MONTHS LATER EVEN THOUGH I DIDN'T SPEAK A WORD OF FRENCH AT THE TIME IT WAS THEN OR NEVER I HAD NO PROSPECTS HERE TO TIE ME DOWN IN PARIS I MET PEOPLE WILLING TO HELP ME THEY INVITED ME TO PLAY AND IT SNOWBALLED THIS ITHACA NY NATIVE WHO GRADUATED FROM INDIANA UNIVERSITY WITH HONORS IN BOTH MUSIC AND COMPUTER SCIENCE SOON BLOSSOMED IN HIS ADOPTED COUNTRY HIS FRENCH WIFE AND GENERAL MANAGER CONSTANCE DE MARGERIE SUGGESTS THE REASON WAS THAT HE FELT FREE ENOUGH TO BE HIMSELF IN FRANCE SHORTLY AFTER MR CHIU'S ARRIVAL HE ABANDONED HIS CLOSELY CROPPED HAIRCUT IN FAVOR OF A LONG LOW PONYTAIL ARTISTIC CHANGES FOLLOWED SUIT SINCE THEN HE HAS MADE FOUR DISKS FOR HARMONIA MUNDI WITH WHOM HE HAS AN EXCLUSIVE CONTRACT AND COFOUNDED THE CHAMBERMUSIC FESTIVAL CONSONANCE IN SAINT NAZAIRE ON THE WEST COAST NEAR NANTES WITH THE VIOLINIST PHILIPPE GRAFFIN HE WILL RETURN TO THE US ON MAY 29 FOR A RECITAL AT TEXAS CHRISTIAN UNIVERSITY IN FORT WORTH AND WILL PERFORM AT THE NEWPORT FESTIVAL IN RHODE ISLAND ON JULY 18 MISSING IN HIS SCHEDULE SO FAR ARE THE CONCERTO PERFORMANCES WITH ORCHESTRAS THAT ARE THE BREAD AND BUTTER OF AN UPANDCOMING PIANIST'S CAREER I MUCH PREFER THE RECITAL INSISTS MR CHIU WHERE I'M PERSONALLY RESPONSIBLE FOR EVERYTHING WHICH TRANSLATES INTO 100 FREEDOM TO DO WHAT I WANT OR CHAMBER MUSIC WITH PEOPLE WITH WHOM I HAVE A LONGSTANDING RELATIONSHIP NEEDLESS TO SAY THE MANAGERS WHO HAVE CONTACTED HIM SO FAR FIND THIS A VERY UTOPIAN VIEW BUT HE IS IN THE PROCESS OF EXPLORING WHETHER SOME ARRANGEMENT CAN BE REACHED WITH AN AMERICAN REPRESENTATIVE IN THE MEANTIME RECORDING REMAINS A MAJOR PREOCCUPATIONMR CHIU'S DISKS OF RARELY HEARD MENDELSSOHN SONATAS AND SELECTIONS FROM ROSSINI'S PECHES DE VIEILLESSE SINS OF OLD AGE ARE AMONG THE MOST SOULSATISFYING PIANO RELEASES OF THE PAST FEW YEARS MENDELSSOHN'S SONATA IN BFLAT MAJOR CERTAINLY DESERVES WIDER CURRENCY AND THE ROSSINI SALON PIECES ARE A SHEER DELIGHT BY TURNS QUIETLY REFLECTIVE GENTLY WITTY AND SOMBER WITH THE PERIODIC SHIFTS IN EMOTIONAL TEMPERATURE THAT CHARACTERIZE ROSSINI'S OPERAS THEY ALSO SHOW THE INFLUENCE OF CHOPIN MENDELSSOHN AND LISZT MR CHIU PLAYS THESE LITTLE GEMS WITH SIMPLICITY AND SENSITIVITY HE IS AN INTROSPECTIVE PIANIST IN THE MANNER OF THE YOUNG MURRAY PERAHIA WITH A WIDE DYNAMIC PALETTE AND AN ABILITY TO MAKE A PHRASE HIS OWN YET HE ALSO HAS THE HARDCORE DIGITAL EQUIPMENT FOR PROKOFIEV'S VIRTUOSIC SIXTH SONATA WHICH WAS THE HIGHLIGHT OF HIS TULLY HALL RECITAL HIS CLEAR BRIGHT TONE WAS WELLSUITED TO THE SPIKY HARMONIES OF THIS SOCALLED WAR SONATA AND HIS TAUT VIBRANT PERFORMANCE SUSTAINED THE MELODIC LINE BETTER THAN MOST TWO EXCERPTS FROM RAVEL'S MIROIRS WERE RENDERED WITH FLEET FINGERS AND AN APT COLORISTIC SENSE TO EXPERIENCE THESE ARTISTIC PEAKS HOWEVER THE AUDIENCE HAD TO SIT THROUGH FIVE BACHBUSONI TRANSCRIPTIONS TWO IMPRESSIONISTIC PIECES WITH SOME CURIOUS TEMPO LURCHES EACH BY DEBUSSY AND HIS COMPATRIOT ABEL DECAUX AND MR CHIU'S TRANSCRIPTION OF EXCERPTS FROM PROKOFIEV'S LIEUTENANT KIJE SUITE IT WAS LIKE MAKING A MEAL OUT OF SIMILARTASTING HORS D'OEUVRES EACH OF INTEREST BUT MONOTONOUS ONE AFTER THE OTHER WHETHER MR CHIU WILL EVER GAIN THE BROAD FOLLOWING NECESSARY FOR A MAJOR INTERNATIONAL CAREER REMAINS TO BE SEEN BUT A MATURE MUSICAL MARKETPLACE SHOULD BE ABLE TO ENCOMPASS MR CHIU'S NARROWLY FOCUSED IDIOSYNCRATIC TALENT ALONG WITH THAT OF MORE TRADITIONAL VIRTUOSO TYPES MS JEPSON IS A MUSIC WRITER IN NEW YORK 9404290176 940429 PRUDENTIAL SAYS IT INFLATED THE VALUE OF 2 REALTY FUNDS ASKS AIDES TO QUIT BY MITCHELL PACELLE AND LESLIE SCISM STAFF REPORTERS OF THE WALL STREET JOURNAL PRUDENTIAL INSURANCE CO OF AMERICA CONCEDED IT HAD IMPROPERLY INFLATED THE VALUE OF TWO REALESTATE FUNDS IT SOLD TO PENSION FUNDS AND REQUESTED THE RESIGNATIONS OF TWO EXECUTIVES IT SAID WERE RESPONSIBLE IN ADDITION THE NEWARK NJ INSURER HAS PROMISED TO PROVIDE CASH PAYMENTS TO CLIENTS WHO WERE OVERCHARGED AS A RESULT OF THE WRONGDOING WHICH COULD TOTAL SOME 50 MILLION ACCORDING TO ONE INDIVIDUAL FAMILIAR WITH THE PLAN IF INVESTORS LOST MONEY IN THE PROCESS WE'RE GOING TO MAKE THEM WHOLE A COMPANY SPOKESMAN VOWED YESTERDAY CHARLES LIGHTNER CHIEF EXECUTIVE OFFICER OF PRUDENTIAL REAL ESTATE INVESTORS HAS BEEN ASKED TO RESIGN ACCORDING TO ONE COMPANY INSIDER THE COMPANY DECLINED TO COMMENT BUT SAID THAT CLAUDE ZINNGRABE CHAIRMAN OF PRUDENTIAL HOME BUILDING INVESTORS INC HAD SUCCEEDED MR LIGHTNER AS CHIEF EXECUTIVE MR LIGHTNER COULDN'T BE REACHED FOR COMMENT IN ADDITION MARK CLARKE VICE PRESIDENT FOR PORTFOLIO MANAGEMENT ALSO WAS ASKED TO RESIGN THE COMPANY INSIDER SAID MR CLARKE COULDN'T BE REACHED FOR COMMENT YESTERDAY'S DISCLOSURES RESULTED FROM AN EXTENSIVE INTERNAL INVESTIGATION THAT WAS PROMPTED BY A LAWSUIT FILED LAST FALL IN NEW JERSEY SUPERIOR COURT IN NEWARK BY MARK JORGENSEN FORMERLY MANAGER FOR THREE OF PRUDENTIAL'S REALESTATE FUNDS HE CHARGED THE COMPANY WITH DEMOTING HIM AFTER HE COMPLAINED THAT THE COMPANY WAS INFLATING RETURNS AND INCREASING THE FEES ON ONE OF THE FUNDS THE PRUDENTIAL PROPERTY INVESTMENT SEPARATE ACCOUNT KNOWN AS PRISA HE WAS DISMISSED IN FEBRUARY AFTER HE DISCLOSED IN COURT WHAT THE COMPANY SAID WERE CONFIDENTIAL DOCUMENTS THE COMPANY OFFERED YESTERDAY TO REHIRE MR JORGENSEN BUT HE SAID HE HAD ALREADY DECIDED TO RELOCATE TO CALIFORNIA AND WOULDN'T REJOIN THE FIRM THE COMPANY HAS AGREED TO A FINANCIAL SETTLEMENT WITH MR JORGENSEN WHICH HE WOULDN'T DISCLOSE AND HE HAS DROPPED HIS LAWSUIT PREVIOUSLY PRUDENTIAL HAD INSISTED THAT MR JORGENSEN'S CHARGES WERE GROUNDLESS AND STEMMED FROM HIS UNHAPPINESS ABOUT BEING DEMOTED AFTER A REORGANIZATION BUT A REPORT ON THE MATTER PREPARED BY SONNENSCHEIN NATH & ROSENTHAL A CHICAGO LAW FIRM RETAINED BY PRUDENTIAL TO INVESTIGATE CONCLUDED THAT THERE IS EVIDENCE THAT CERTAIN PRUDENTIAL MANAGERS COMMUNICATED AN UPWARD DIRECTIONAL BIAS WITH RESPECT TO THE VALUES OF TWO FUNDS TO PRUDENTIAL'S INTERNAL ASSET MANAGERS AS WELL AS OUTSIDE APPRAISERS BETWEEN 1988 AND 1993 THERE ARE A FEW DISTURBING INSTANCES WHERE THAT PREFERENCE MAY WELL HAVE BEEN INAPPROPRIATELY CONVERTED INTO PRESSURE TO SUSTAIN A HIGHER VALUE THE REPORT ALSO CONCLUDED THAT THERE WAS NO EVIDENCE OF A SYSTEMATIC OR FRAUDULENT SCHEME OF OVERVALUATION PENSIONFUND INVESTORS PAY MANAGEMENT FEES TO PRUDENTIAL BASED ON THE COMPANY'S VALUATIONS OF THE PROPERTIES ALTHOUGH THE COMPANY DIDN'T DETAIL HOW IT WOULD COMPENSATE INVESTORS FOR THE OVERVALUATIONS A SPOKESMAN SAID EXCESSIVE MANAGMENT FEES WOULD BE REFUNDED IN ADDITION PENSION FUNDS WHO HAD INVESTED AFTER THE OVERVALUATIONS WOULD BE COMPENSATED FOR OVERPAYING FOR SHARES IN THE FUND PRUDENTIAL SAID THAT KENNETH LEVENTHAL & CO A NATIONAL ACCOUNTING FIRM HAD REVIEWED THE APPRAISALS OF 141 PROPERTIES AND FOUND THAT 26 WERE OVERVALUED BY MORE THAN 10 PRUDENTIAL SAID IT WOULD HIRE INDEPENDENT APPRAISERS TO REVALUE THE PROPERTIES AND WOULD OVERHAUL ITS ENTIRE APPRAISAL PROCESS THE CONTROVERSY OVER THE REALESTATE FUNDS IS UNRELATED TO THE PROBLEMS INVOLVING PRUDENTIAL SECURITIES PRUDENTIAL'S BROKERAGE FIRM PRUDENTIAL SECURITIES IS UNDER ATTACK FOR THE SALE OF ENERGY AND REALESTATE LIMITED PARTNERSHIPS TO RETAIL INVESTORS 9404290175 940429 MORGAN STANLEY'S TOP OFFICERS EARN OVER 10 MILLION BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MORGAN STANLEY GROUP INC AFTER CUTTING THE PAY OF ITS SENIOR EXECUTIVES IN 1992 PAID ITS TWO TOP OFFICERS MORE THAN 10 MILLION APIECE IN 1993 ACCORDING TO ITS PROXY STATEMENT MORGAN STANLEY WHICH POSTED RECORD EARNINGS LAST YEAR SAID CHAIRMAN RICHARD B FISHER WAS AWARDED A 1993 PAY PACKAGE OF 105 MILLION IN SALARY BONUS AND RESTRICTED STOCK UP 68 FROM 1992 JOHN J MACK PRESIDENT EARNED ABOUT 102 MILLION IN SALARY BONUS AND RESTRICTED AWARDS IN 1993 UP 63 FROM 1992 MESSRS FISHER AND MACK RECEIVED ABOUT HALF THEIR PAY PACKAGES IN THE FORM OF RESTRICTED STOCK AWARDS THE BIG INVESTMENT BANK SAID MORGAN STANLEY'S PAY PACKAGES CAP THE BIGGEST YEAR EVER FOR WALL STREET COMPENSATION THE CHAIRMEN OF SEVERAL BROKERAGE FIRMS INCLUDING BEAR STEARNS COS MERRILL LYNCH & CO AND PAINEWEBBER GROUP INC ALL RECEIVED 1993 PAYCHECKS OF MORE THAN 96 MILLION AND MANY TRADERS EARNED FAR MORE THAN THAT ACCORDING TO WALL STREET EXECUTIVES IN 1992 MORGAN STANLEY MADE HEADLINES FOR SLASHING THE PAY OF ITS THREE TOP EXECUTIVES BY 20 FROM 1991 THE PAY CUTS WERE UNUSUAL BECAUSE MORGAN STANLEY HAD REPORTED RECORD PROFIT FOR 1992 BUT THE MOVE WAS PROMPTED BY MORGAN STANLEY'S SLUMPING RETURN ON EQUITY IN 1992 MR FISHER 57 YEARS OLD RECEIVED A 1993 CASH BONUS OF 44 MILLION UP FROM 29 MILLION A YEAR EARLIER MR FISHER'S SALARY WAS UNCHANGED AT 475000 THE PROXY SAID MORGAN STANLEY VALUED MR FISHER'S RESTRICTED STOCK AWARDS AT 56 MILLION COMPARED WITH 29 MILLION IN 1992 MR FISHER'S TOTAL 1992 PAY WAS ABOUT 63 MILLION MORGAN STANLEY'S COMPENSATION COMMITTEE SAID MR FISHER'S PAY STEMMED FROM HIS ROLE IN PROMOTING THE LONGTERM STRATEGIC GROWTH OF THE COMPANY INCLUDING THE COMPANY'S CONTINUING EXPANSION INTERNATIONALLY MORGAN STANLEY ALSO NOTED THAT THE FIRM'S 1993 RETURN ON STOCKHOLDER EQUITY ROSE TO 237 FROM 176 MORGAN STANLEY HAD 1993 NET INCOME OF 786 MILLION OR 959 A SHARE UP FROM 510 MILLION OR 590 A SHARE IN 1992 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY MORGAN STANLEY'S STOCK FELL 1875 TO 61 9404290174 940429 REYNOLDS METALS' NEW PLANT RICHMOND VA REYNOLDS METALS CO SAID IT WOULD BUILD AN ALUMINUM BEVERAGE PLANT IN BUENOS AIRES TO INCREASE THE ALUMINUM MAKER'S ANNUAL CAPACITY TO MORE THAN FIVE BILLION CANS AND ENDS THE OPERATION WILL BE PART OF REYNOLDS BRAZILIAN AFFILIATE LATAS DE ALUMINIO SA AND WILL BE MANAGED AND OPERATED BY REYNOLDS 9404290173 940429 CANADA ECONOMY GREW AT 4 RATE IN QUARTER CENTRAL BANK PROJECTS OTTAWA THE BANK OF CANADA ESTIMATED THAT CANADA'S ECONOMY GREW AT AN ANNUAL RATE OF ABOUT 4 IN THE FIRST QUARTER DESPITE SEVERE WINTER WEATHER CONDITIONS IT WOULD BE THE SECOND CONSECUTIVE QUARTER OF COMPARATIVELY ROBUST GROWTH THE GROSS DOMESTIC PRODUCT THE TOTAL VALUE OF CANADA'S OUTPUT OF GOODS AND SERVICES GREW AT AN ANNUAL RATE OF 38 IN THE 1993 FOURTH QUARTER STATISTICS CANADA A GOVERNMENT AGENCY IS EXPECTED TO REPORT THE FIRSTQUARTER GDP DATA ON JUNE 10 ECONOMIC GROWTH IN THE JANUARY TO MARCH PERIOD WAS SPURRED IN PART BY A PICKUP IN RETAILS SALES PARTICULARLY AUTO SALES THE BANK OF CANADA SAID THE BANK OF CANADA SAID CANADIAN INFLATION REMAINS WITHIN ITS TARGET RANGE THE CENTRAL BANK AIMS TO KEEP ANNUAL INFLATION BETWEEN 1 AND 3 THROUGH 1998 9404290172 940429 TYSON FOODS PLANS ACQUISITION SPRINGDALE ARK TYSON FOODS INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE CULINARY FOODS INC A CHICAGOBASED MAKER OF FROZEN FOODS TYSON DIDN'T DISCLOSE TERMS IT ADDED THAT CULINARY HAD 1993 SALES OF ABOUT 70 MILLION 9404290171 940429 INDUSTRY FOCUS ROAD TOWARD SUCCESS AT FLAT SCREENS' IS FULL OF BUMPS JAPAN'S LEAD AT NOTEBOOKCOMPUTER AIRCRAFT DISPLAYS WILL BE HARD TO SHRINK BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL US ELECTRONICS COMPANIES DESPITE SUBSTANTIAL GOVERNMENT AID PROMISED YESTERDAY STILL FACE LONG ODDS IN THEIR QUEST TO BECOME MAJOR MANUFACTURERS OF FLAT DISPLAY SCREENS JAPANESE INDUSTRY DOMINATES THE MANUFACTURE OF FLAT SCREENS WHICH ARE USED IN NOTEBOOK COMPUTERS AIRCRAFT AND OTHER HIGHTECH PRODUCTS THEY LEAD IN SCREENS USING THE MOST ADVANCED TECHNIQUES ORIGINALLY PIONEERED BY AMERICANS BUT THEN FUMBLED AWAY IN A CLASSIC PATTERN OF INDUSTRY NEGLECT OF ITS FUTURE YESTERDAY THE PENTAGON LAID OUT ITS PLAN TO REVIVE THE FLATPANEL INDUSTRY IN THE US AND PLEDGED IT WOULD SPEND ABOUT 600 MILLION OVER THE NEXT FIVE YEARS TOWARD THAT END BUT THE GREATEST OBSTACLE FOR A US REVIVAL IS THE SHEER COMPLEXITY OF FLAT SCREENS AND THE IMPORTANCE OF EXPERIENCE IN REDUCING PRODUCTION COSTS MANUFACTURING FLAT SCREENS IS ONE OF MOST CHALLENGING OF ALL MANUFACTURING TASKS SAYS CRAIG FIELDS FORMERLY A TOP PENTAGON RESEARCH OFFICIAL AND HEAD OF A RESEARCH CONSORTIUM IN AUSTIN TEXAS THE MOST ADVANCED SCREENS OFFER BRIGHT SHARP PICTURES BY RELYING ON ESSENTIALLY A SHEET OF SEMICONDUCTORS WHICH TURN ON AND OFF PIXELS THE BASIC PICTURE ELEMENTS OF AN ELECTRONIC SCREEN TO PRODUCE AN ACTIVE MATRIX OLDER FLAT SCREENS RELYING ON PASSIVE MATRIX TECHNIQUES CREATED DULLER IMAGES WITH RELATIVELY POOR CONTRAST SINCE 1990 ACTIVEMATRIX SCREENS HAVE GROWN IN POPULARITY BECAUSE OF THEIR SUPERIOR PERFORMANCE BUT MAKING THE SCREENS IS TRICKY BECAUSE A SMALL NUMBER OF CHIP DEFECTS CAN RENDER AN ENTIRE SCREEN USELESS IN MAKING ACTIVEMATRIX DISPLAYS YOU'RE TRYING TO EFFECTIVELY EMPLOY SEMICONDUCTOR MANUFACTURING TECHNIQUES ON AN UNPRECEDENTED LARGE SCALE SAYS MR FIELDS JAPANESE COMPANIES BEGAN MAKING THE ADVANCED SCREENS MORE THAN FOUR YEARS AGO AND LEARNING FROM EXPERIENCE ARE BEGINNING TO SEE THEIR YIELDS RISE SUBSTANTIALLY BUT US COMPANIES NEW TO THE ACTIVITY WILL BEGIN AT THE BOTTOM OF THE MANUFACTURING LEARNING CURVE SO THE OTHER GUY IS THREE TO FOUR YEARS AHEAD OF YOU SAYS ERIC BLOCH FORMERLY CHIEF OF RESEARCH AND DEVELOPMENT AT INTERNATIONAL BUSINESS MACHINES CORP AND A FELLOW AT THE COUNCIL ON COMPETITIVENESS HIS YIELDS ARE GOING UP AND COSTS ARE GOING DOWN CATCHING UP WITH JAPANESE MANUFACTURERS IS A SPECIAL PROBLEM FOR THE BEVY OF INFANT US CONCERNS THAT POSSESS MOST OF THE INNOVATIVE KNOWHOW IN FLAT SCREENS THAT'S WHY PART OF THE GOVERNMENT'S PLAN IS AIMED AT ATTRACTING BIG MANUFACTURERS INTO THE FLATSCREEN GAME ALREADY MOTOROLA INC ONE OF THE NATION'S PREMIER ELECTRONICS MAKERS IS INTENT ON MASSPRODUCING FLAT SCREENS THROUGH A JOINT VENTURE CALLED MOTIF INC IN WILSONVILLE ORE AND WITH THE PROSPECT OF AS MUCH AS 120 MILLION FOR EACH OF FOUR FACTORIES SUCH GLOBAL HEAVYWEIGHTS AS IBM CORP AT&T CORP AND XEROX CORP SAY THEY ARE READY TO LAUNCH MANUFACTURING EFFORTS AS WELL THESE BIG COMPANIES HAVE MANUFACTURING KNOWHOW THAT EQUALS THEIR JAPANESE RIVALS IN MANY CASES BUT ARE AMONG THE LARGE DOMESTIC HIGHTECH CONCERNS THAT ALLOWED FLATSCREEN TECHNOLOGY TO SHIFT TO JAPAN DURING THE 1970S AND 1980S WE HAD IT AND WE GAVE IT AWAY SAYS RICHARD FLASCK WHO A DECADE AGO FOUNDED THE FIRST US ACTIVEMATRIX DISPLAY COMPANY TO PRODUCE VIABLE PRODUCTS BUT BIG ESTABLISHED US COMPANIES REFUSED TO BACK MR FLASCK'S COMPANIES AND OTHERS THAT MINED THE SAME ACTIVEMATRIX TECHNOLOGY EVEN WORSE BIG CONSUMERS OF FLAT DISPLAYS COMPUTER MAKERS APPLE COMPUTER IBM AND COMPAQ COMPUTER CORP REFUSED TO OFFER FINANCIAL HELP TO INCREASE THE PRODUCTIVE CAPABILITIES OF BOOTSTRAP OPERATIONS SUCH AS MR FLASCK'S IN THE MIDDLE TO LATE 1980S IBM COMPAQ AND APPLE SAID WHY SHOULD WE INVEST ANY MONEY IN HELPING YOU WHEN WE CAN WAIT AND THE JAPANESE HAVE PROMISED TO DO IT ON THEIR OWN NICKEL MR FLASCK RECALLS NOW THAT SOME LEADING HIGHTECH COMPANIES SAY THEY WANT TO HELP REVIVE A FIELD THEY ONCE NEGLECTED SOME SMALLER CONCERNS WORRY THAT THEY'LL LOSE OUT ON GOVERNMENT LARGESSE THERE'S A CONCERN THAT NOW THEY'LL GET THE BIG MONEY SAYS JOHN FAN CHIEF EXECUTIVE OFFICER OF KOPIN CORP A TINY TAUNTON MASS DISPLAY MAKER WITHOUT A SUBSTANTIAL CARROT FROM THE GOVERNMENT HOWEVER MANY ESTABLISHED COMPANIES SAY THEY WON'T MAKE THE PRIVATE INVESTMENTS REQUIRED TO MOUNT A CHALLENGE AGAINST JAPAN IN ADVANCED FLAT SCREENS THE FEDERAL CONTRIBUTION PROVIDES SOME HEDGE AGAINST BEING BLOWN OUT OF THE WATER BY THE JAPANESE SAYS MALCOLM THOMPSON CHIEF TECHNOLOGIST AT XEROX'S PALO ALTO RESEARCH LAB IN CALIFORNIA ONE OF THE BIGGEST RISKS IS THAT US INDUSTRY WILL FIND ITSELF RACING TO SIMPLY DUPLICATE THE JAPANESE MASTERY OF FLAT SCREENS YOU WON'T BE SUCCESSFUL CATCHING UP IF YOU GO DOWN THE SAME PATH AS THE JAPANESE SAYS PAUL GULICK CHIEF TECHNOLOGY OFFICER OF MOTIF THE MOTOROLA VENTURE MOTIF IS RELYING ON A NEW TECHNIQUE TO PRODUCE IMAGES CALLED ACTIVE ADDRESSING WHICH MR GULICK SAYS WILL ENABLE SCREENS TO BE MADE FOR 1/10TH THE COST OF JAPAN'S APPROACH BUT SKEPTICS DERIDE THE NOTION THAT US COMPANIES CAN LEAPFROG THE JAPANESE ARGUING THAT THE FIELD IS MOVING TOO FAST AND THAT THE JAPANESE ARE THEMSELVES PLACING AMPLE BETS ON NEW APPROACHES EVEN SO THE US CAN GAIN SUBSTANTIALLY FROM HAVING A MEANINGFUL PIECE OF THE FLATSCREEN MARKET OF SAY 20 THE GOAL ISN'T TO UNSEAT THE LEADER BUT TO KEEP THE JAPANESE SUPPLIERS HONEST IN THE MARKET SAYS MICHAEL BORRUS AN ANALYST AT THE BERKELEY ROUNDTABLE FOR INTERNATIONAL ECONOMY IN RECENT YEARS SOME COMPUTER MAKERS HAVE COMPLAINED THAT JAPANESE SUPPLIERS HAVE WITHHELD SCREENS FOR VARIOUS REASONS THE PENTAGON ALSO COMPLAINS THAT IT CAN'T CONVINCE JAPANESE SUPPLIERS TO TAILOR THEIR SCREENS FOR MILITARY EQUIPMENT A CLAIM THE JAPANESE DON'T DISPUTE PENTAGON OFFICIALS EVEN ARGUE THAT THE ADMINISTRATION'S NEW PLAN WILL INSURE DOMESTIC SUPPLIES OF FLAT SCREENS MAKING THE MILITARY SELFSUFFICIENT IN THIS AREA BUT OTHERS DISPUTE THIS SAYING THAT THE PENTAGON'S RECENT DECISION TO INVEST 48 MILLION IN A PLANT RUN BY DISPLAYMAKER OPTICAL IMAGING SYSTEMS A SUBSIDIARY OF GUARDIAN INDUSTRIES CORP WILL MORE THAN SATISFY DEFENSE NEEDS THE PENTAGON'S CLAIM IS NOT COMPLETELY SPURIOUS SAYS MR BLOCH OF THE COUNCIL ON COMPETITIVENESS ON THE OTHER HAND THE ADMINISTRATION'S PLAN HAS MORE TO DO WITH CIVILIAN TECHNOLOGY AND MARKET SHARE THAN MILITARY NEEDS BUT BY DESCRIBING THE SUBSIDY TO FLATSCREEN MAKERS AS A METHOD OF STRENGTHENING THE NATION'S DEFENSE CAPABILITIES THE CLINTON ADMINISTRATION SEEKS A NEAT WAY OF DEFLECTING CRITICISM SURE TO ARISE THAT THE GOVERNMENT IS INTRUDING TOO MUCH INTO COMMERCIAL MARKETS THIS MAKES IT RATHER CLEAR THAT THE DEFENSE DEPARTMENT IS STILL PERHAPS THE MOST SIGNIFICANT PLAYER IN COMMERCIALTECHNOLOGY POLICY MR BORRUS SAYS 9404290170 940429 WHO'S NEWS NATIONAL GYPSUM CO NATIONAL GYPSUM CO CHARLOTTE NC STEPHEN M HUMPHREY 49 YEARS OLD WAS ELECTED TO THE BOARD OF THIS WALLBOARD MANUFACTURER BRINGING THE NUMBER OF DIRECTORS TO EIGHT MR HUMPHREY WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE COMPANY IN MARCH 9404290169 940429 INTERNATIONAL SOUTH AFRICA EXTENDS VOTE FOR ONE DAY BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL JOHANNESBURG VOTING IN SOUTH AFRICA'S FIRST ALLRACE ELECTIONS HAS BEEN EXTENDED BY ONE DAY IN CERTAIN AREAS INCLUDING STRIFETORN NATAL FOLLOWING ALLEGATIONS OF IRREGULARITIES AND MASSIVE LOGISTICAL FLAWS IN ANNOUNCING THE DECISION LAST NIGHT JUST AS VOTING WAS SCHEDULED TO END PRESIDENT FW DE KLERK SAID THE EXTENSION WOULD HELP ENSURE THAT THE FAIRNESS OF THE HISTORIC BALLOT WON'T BE CHALLENGED IF WE DON'T ACHIEVE FREE AND FAIR VOTING THE ELECTION RESULT RIGHT FROM THE BEGINNING WILL BE IN TOTAL JEOPARDY MR DE KLERK SAID AT A NEWS CONFERENCE IN PRETORIA THE ELECTION RESULT WILL NOT BE THE BEGINNING OF RECONCILIATION BUT OF CONFLICT AND STRIFE THE ANNOUNCEMENT OF AN EXTENSION WHICH HAD BEEN REQUESTED BY THE INDEPENDENT ELECTORAL COMMISSION FOLLOWED A DAY OF CONFUSION AT VARIOUS POLLING STATIONS THROUGHOUT THE COUNTRY AND ACCUSATIONS FROM VARIOUS POLITICAL PARTIES OF FRAUD TAMPERING OR INTIMIDATION BALLOT PAPERS WERE MISSING AT SEVERAL POLLING STATIONS OTHERS RAN OUT OF THE INVISIBLE INK THAT IS PLACED ON VOTERS' HANDS AFTER THEY HAVE VOTED TO PREVENT THEM FROM VOTING TWICE AND OTHER POLLING STATIONS FAILED TO OPEN ON TIME AT ONE POLLING STATION IN PORT ELIZABETH MONITORS WERE ALLEGED TO HAVE OPENED THE BALLOT BOXES A CHARGE THEY DENIED THE AFRICAN NATIONAL CONGRESS ACCUSED THE KWAZULU POLICE OF INTIMIDATING VOTERS INTO CASTING THEIR BALLOTS FOR THE INKATHA FREEDOM PARTY INKATHA OFFICIALS DENIED THE ALLEGATION EARLIER IN THE DAY ANC LEADER NELSON MANDELA WIDELY EXPECTED TO BE SOUTH AFRICA'S NEXT PRESIDENT CHARGED THAT THE ELECTIONS WERE MARRED BY MASSIVE SABOTAGE HE DIDN'T ELABORATE OTHER THAN TO SAY HE FOUND IT STRIKING THAT PROBLEMS OCCURRED MAINLY IN BLACK AREAS WHERE THE ANC PROBABLY WILL DO WELL MR DE KLERK SAID YESTERDAY THAT MR MANDELA'S CONTENTION WAS A VERY SERIOUS ALLEGATION FOR A LEADER OF HIS STATURE AND HE WILL HAVE TO BACK IT UP WITH FACTS DESPITE THE ACCUSATION AND CONFUSION HOWEVER TOP OFFICIALS OF MOST PARTIES SAID THEY WERE LARGELY SATISFIED WITH THE WAY THE ELECTIONS HAD GONE OVERWHELMINGLY WE BELIEVE THE ELECTION HAS GONE WELL SAID JAY NAIDOO A LEADING ANC CANDIDATE THIS HAS BEEN A REMARKABLY CALM AND DISCIPLINED ELECTION OFFICIALS WERE CONFIDENT THAT THE EXTRA DAY OF VOTING SHOULD ALLOW THEM TO IRON OUT THE REMAINING HITCHES VOTING WILL TAKE PLACE IN SIX AREAS ALL OF THEM FORMER SELFGOVERNING OR NOMINALLY INDEPENDENT TRIBAL HOMELANDS KWAZULU CISKEI TRANSKEI VENDA GAZANKULU AND LEBOWA THE EXTENSION MEANS VOTE COUNTING WILL BE DELAYED BY ONE DAY AND WILL ONLY BEGIN SATURDAY MORNING 9404290168 940429 HELPWANTED ADS RISE AGAIN IN MARCH AFTER RECORD INCREASE NEW YORK HELPWANTED ADVERTISING ROSE AGAIN IN MARCH AFTER A RECORD INCREASE IN FEBRUARY THE CONFERENCE BOARD SAID THE BOARD'S HELP WANTED INDEX AN INDICATOR OF HIRING PLANS ROSE TO 117 ON A SEASONALLY ADJUSTED BASIS FROM 115 IN FEBRUARY THE READING HAD BEEN 105 IN JANUARY ALTHOUGH THE RISE IN HELPWANTED ADVERTISING WAS MORE MODEST IN MARCH THE ECONOMY IS EXPANDING FAST ENOUGH TO OPEN UP NEW JOBS AS WELL AS ENCOURAGE EMPLOYERS TO STEP UP THEIR RECRUITMENT EFFORTS SAID CONFERENCE BOARD ECONOMIST KEN GOLDSTEIN IN THE LAST THREE MONTHS HELPWANTED ADVERTISING ROSE IN ALL NINE REGIONS OF THE COUNTRY LED BY THE EAST NORTH CENTRAL WHICH INCREASED 118 AND BY THE WEST NORTH CENTRAL REGION UP 115 THE EAST SOUTH CENTRAL POSTED A 97 GAIN WHILE THE WEST SOUTH CENTRAL AND SOUTH ATLANTIC INCREASED 77 THE CONFERENCE BOARD A NONPROFIT BUSINESS RESEARCH GROUP SURVEYS HELPWANTED ADVERTISING IN 51 NEWSPAPERS NATIONWIDE EACH MONTH THE MEASURE IS CONSIDERED A BAROMETER OF CHANGE IN THE SUPPLY OF JOBS BECAUSE ADVERTISING VOLUME IS SENSITIVE TO LABORMARKET CONDITIONS 9404290167 940429 WHO'S NEWS AMERICAN GENERAL'S HOOK TO BE CHAIRMAN CEO 3 MORE YEARS HOUSTON HAROLD S HOOK LONGTIME CHAIRMAN AND CHIEF EXECUTIVE OF AMERICAN GENERAL CORP SAID HE WILL REMAIN AT THE HELM OF THE LARGE INSURANCE CONCERN FOR AT LEAST THREE MORE YEARS MR HOOK 62 YEARS OLD WHOSE HINTS AT RETIREMENT HAVE PROMPTED SUCCESSION SPECULATION FOR MORE THAN A YEAR PLANNED TO ANNOUNCE A RETIREMENT DATE AT YESTERDAY'S ANNUAL MEETING BUT AMID THE DEPARTURE OF TWO LOGICAL SUCCESSORS WITHIN THE PAST NINE MONTHS THE BOARD ASKED MR HOOK TO SIGN A NEW THREEYEAR CONTRACT SAID J EVANS ATTWELL A DIRECTOR WE ARE IN THE MIDDLE OF SO MANY THINGS HE IS THE ARCHITECT OF MR ATTWELL SAID I THINK THE BOARD FELT UNANIMOUSLY THAT HAROLD WAS RETIRING PREMATURELY AMERICAN GENERAL'S STOCK GAINED 625 CENTS TO CLOSE AT 25875 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING MR HOOK HAS GUIDED AMERICAN GENERAL SINCE 1978 HE FENDED OFF A TAKEOVER BID THEN PUT THE COMPANY UP FOR SALE THEN DECIDED TO TAKE IT OFF THE MARKET AND TURN IT AROUND HIMSELF FOUR OFFICERS IDENTIFIED AS POTENTIAL CHIEF EXECUTIVES DEPARTED IN THE PAST FIVE YEARS MR HOOK SAID HIS PLANS FOR THE COMPANY ARE TO JUST KEEP ON KEEPING ON THE STATUS QUO IS NOT A BAD PERFORMANCE THOUGH WE'RE NOT SATISFIED WITH THAT HE SAID HE INTENDS TO RETIRE AT THE 1997 ANNUAL MEETING BY WHICH TIME HE WILL BE 65 BUT THEN ADDED I WOULD GIVE THAT A 90 CERTAINTY WHAT IS PERHAPS EVEN LESS CERTAIN IS WHO THE LEADING INTERNAL CANDIDATE IS FOR THE TOP SPOT IN AUGUST AMERICAN GENERAL NAMED JAMES R TUERFF AN EXPERIENCED OPERATIONS MANAGER AS PRESIDENT AND MR HOOK LABELED HIM HEIR APPARENT BUT ONE MONTH LATER WITH THE DEPARTURE OF VICE CHAIRMAN MICHAEL J POULOS MR HOOK TAPPED ROBERT M DEVLIN THE HEAD OF THE FIRM'S LIFEINSURANCE UNIT TO SUCCEED MR POULOS AND MOVED HIM INTO THE OFFICE OF THE CHAIRMAN WITH HIMSELF AND MR TUERFF 9404290166 940429 TECHNOLOGY & HEALTH GENERAL NUTRITION TO PAY FTC PENALTY OF 24 MILLION OVER FALSE ADVERTISING BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN THE LARGEST FALSEADVERTISING SETTLEMENT IN FEDERAL TRADE COMMISSION HISTORY GENERAL NUTRITION INC AGREED TO STOP MAKING UNSUBSTANTIATED CLAIMS FOR MORE THAN 40 PRODUCTS GENERAL NUTRITION ONE OF THE NATION'S LARGEST RETAILERS OF NUTRITIONAL SUPPLEMENTS WILL PAY A 24 MILLION CIVIL PENALTY TO SETTLE THE CHARGES AMONG THE PRODUCTS AFFECTED ARE SLEEPERS DIET WHICH THE COMPANY HAS CLAIMED CAN HELP USERS LOSE WEIGHT WHILE ASLEEP AND CONCOCTIONS KNOWN AS MUSCLE FIRE POWER AND LIQUID POWER ENERGY LIFT WHICH IT HAS SAID ENHANCE MUSCULAR DEVELOPMENT AND STRENGTH THE COMPANY SAID IN ITS DEFENSE THAT IT DIDN'T PRODUCE MOST OF THE PRODUCTS IN THE DISPUTE BUT THAT THEY WERE EITHER SOLD BY SOME OF ITS LOCAL STORES OR LISTED IN A CATALOG IT PUBLISHED WITH ANOTHER COMPANY THE FEDERAL TRADE COMMISSION SAID THE COMPANY DOESN'T HAVE SCIENTIFIC EVIDENCE TO BACK UP HEALTH CLAIMS IT MADE FOR MORE THAN 40 PRODUCTS THE AGENCY SAID THE COMPANY CONTINUED MAKING SUCH ADVERTISING CLAIMS DESPITE BEING ORDERED TO STOP THE PRACTICE IN SETTLEMENTS REACHED IN 1989 AND IN 1970 CHRISTIAN WHITE ACTING DIRECTOR OF THE FTC'S BUREAU OF CONSUMER PROTECTION CALLED THE CLAIMS FARFETCHED AND SAID THEY HARK BACK TO THE DAYS OF MEDICINE SHOWS THAT WERE POPULAR EARLIER IN THIS CENTURY SIGNING A CONSENT AGREEMENT WITH THE COMMISSION ISN'T AN ADMISSION THAT ANY LAW WAS VIOLATED BUT THE COMPANY NONETHELESS AGREED TO STOP ADVERTISING THAT FATBUSTER DIET TEA SHAKEAWEIGH AND SUPER FAT BLOCKER CAN HELP PEOPLE CONTROL THEIR WEIGHT THE AGREEMENT ALSO REQUIRES IT TO QUASH CLAIMS THAT QUICK SHOT ENERGY PAK CAN TREAT THAT DEPLETED FEELING UNLESS IT ALSO DISCLOSES THAT VITAMINS SUCH AS THOSE IN THE PRODUCT DON'T ALWAYS RELIEVE TIREDNESS THE FTC ALSO SAID THE COMPANY FALSELY ADVERTISED THAT VARIOUS HAIRCARE PRODUCTS INCLUDING BIOTIN VITAMINS AND MINERALS FOR THE HAIR WILL PREVENT OR RETARD HAIR LOSS UNDER THE AGREEMENT THE COMPANY IS PROHIBITED FROM SELLING ADVERTISING OR DISTRIBUTING ANY PRODUCT TO PROMOTE HAIR GROWTH OR PREVENT ITS LOSS UNLESS THE PRODUCT IS APPROVED BY THE FOOD AND DRUG ADMINISTRATION THE FEDERAL COMPLAINT FOCUSES ON CLAIMS THAT PRODUCTS CONTAINING CERTAIN FREEFORM AMINO ACIDS WILL STIMULATE GREATER PRODUCTION OR RELEASE OF HUMANGROWTH HORMONES OR WILL AID IN GREATER MUSCULAR DEVELOPMENT MANY OF THE ALLEGATIONS INCLUDED IN ITS COMPLAINT INVOLVE CLAIMS THE COMPANY MADE IN A MAILORDER CATALOG GENERAL NUTRITION PUBLISHED UNDER A LICENSING AGREEMENT WITH NATURE'S BOUNTY INC BOHEMIA NY ALTHOUGH NATURE'S BOUNTY PURCHASED THE CATALOG BUSINESS IN 1989 GENERAL NUTRITION RETAINED ULTIMATE CONTROL OVER THE CONTENT OF ADS IN SUBSEQUENT CATALOGS THE COMMISSION SAID THE COMPANY SAID PROMOTIONAL MATERIALS FOR MOST OF THE PRODUCTS COVERED BY THE SETTLEMENT SLIPPED THROUGH ITS SCREENING PROCESS BECAUSE IT DIDN'T ACTUALLY PRODUCE THEM BUT CHIEF EXECUTIVE WILLIAM WATTS ACKNOWLEDGED THAT THE COMPANY IS RESPONSIBLE FOR PRODUCTS SOLD IN ITS STORES AND THAT SOME STORES RECEIVED PROMOTIONAL MATERIALS THAT VIOLATED THE EARLIER CONSENT DECREES WE DECIDED TO SETTLE BECAUSE WE THOUGHT WE WERE VULNERABLE ON THIS ISSUE BATTLING IT OUT WOULD HAVE MEANT ANOTHER FOUR OR FIVE YEARS OF OVERHANG ON OUR STOCK HE SAID THE COMPANY CHANGED ITS SCREENING PROCESS IN 1993 WHEN THE FTC CASE BROUGHT THE PROBLEM TO ITS ATTENTION HE ADDED THE COMMISSION CASE CHALLENGED PRINTED AND BROADCAST ADS AS WELL AS INSTORE DISPLAYS THE CONSENT DECREE SETTLING THE CURRENT CHARGES PREVENTS THE COMPANY FROM VIOLATING ANY PROVISIONS OF THE 1989 AND 1970 ORDERS THE DECREE WAS FILED IN PITTSBURGH WITH THE US DISTRICT COURT FOR THE WESTERN DISTRICT OF PENNSYLVANIA GENERAL NUTRITION IS BASED IN PITTSBURGH 9404290165 940429 TECHNOLOGY & HEALTH JOHNSON & JOHNSON SAYS NET ROSE 82 FOR FIRST QUARTER BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL NEW BRUNSWICK NJ JOHNSON & JOHNSON REPORTED HIGHER FIRSTQUARTER EARNINGS DRIVEN BY A 16 INCREASE IN THE HEALTHCARE COMPANY'S DOMESTIC PHARMACEUTICAL BUSINESS JOHNSON & JOHNSON'S EARNINGS ROSE 82 TO 544 MILLION OR 85 CENTS A SHARE FROM 503 MILLION OR 77 CENTS A SHARE A YEAR AGO SALES ROSE 37 TO 369 BILLION FROM 356 BILLION A YEAR AGO WITHOUT THE NEGATIVE EFFECT OF THE STRONG DOLLAR SALES WOULD HAVE INCREASED 58 ACCORDING TO THE COMPANY THE COMPANY ALSO SAID IT WILL INCREASE ITS DIVIDEND 115 TO 29 CENTS PER SHARE FROM 26 CENTS THE QUARTERLY PAYOUT IS PAYABLE JUNE 7 TO STOCK OF RECORD MAY 17 THE RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS BUT THE COMPANY'S STOCK ROSE 1375 A SHARE TO 41625 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE KURT KRUGER AN ANALYST AT HAMBRECHT & QUIST SAID INVESTORS WERE HEARTENED BY THE COMPANY'S RECOGNITION OF THE NEED TO CUT COSTS RESTRUCTURING EFFORTS ALREADY ANNOUNCED WILL REDUCE COSTS BY 500 MILLION A YEAR AND LAST YEAR RESULTED IN 4500 JOB CUTS THE COMPANY SAID JOHNSON & JOHNSON'S PHARMACEUTICAL BUSINESS GREW 7 WORLDWIDE FAR OUTPACING ITS CONSUMER AND PROFESSIONAL SEGMENTS WHOSE SALES GREW 02 AND 43 RESPECTIVELY THE COMPANY ATTRIBUTED THE PHARMACEUTICAL SECTOR'S GROWTH TO PRODUCTS SUCH AS THE ANTIANEMIA DRUG PROCRIT GASTROINTESTINAL PRODUCT PREPULSID AND ANTIPSYCHOTIC MEDICATION RISPERDAL JOHNSON & JOHNSON'S CONSUMER BUSINESS CONTINUES TO STRUGGLE AGAINST PRIVATE LABEL COMPETITION THE COMPANY SAID AT ITS ANNUAL MEETING YESTERDAY THE COMPANY ALSO FACED FIERCE COMPETITION IN THE OVERTHECOUNTER MARKET FOR VAGINAL YEAST INFECTION REMEDIES DOMESTIC SALES DECLINED 46 IN PART BECAUSE MAJOR WHOLESALERS INSTITUTED PURCHASING PROGRAMS THAT REDUCED INVENTORIES BUT AT THE RETAIL LEVEL THE COMPANY HAS GAINED MARKET SHARE IN BABY PRODUCTS AND OTHER CATEGORIES A SPOKESMAN SAID SALES OF THE PROFESSIONAL SEGMENT WHICH INCLUDES SURGICAL AND HOSPITAL EQUIPMENT GREW 43 DOMESTIC SALES INCREASED ONLY 18 BECAUSE THE PREVIOUS YEAR INCLUDED THE RESULTS OF A BUSINESS THAT WAS SUBSEQUENTLY SOLD THE COMPANY SAID CHAIRMAN RALPH S LARSEN SAID AT THE ANNUAL MEETING THAT THE COMPANY WILL INCREASE RESEARCH AND DEVELOPMENT SPENDING TO 13 BILLION FROM 12 BILLION LAST YEAR 9404290164 940429 INTERNATIONAL BERLUSCONI GETS OFFICIAL MANDATE TO GOVERN ITALY BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MEDIA TYCOON SILVIO BERLUSCONI RECEIVED A MANDATE FROM ITALY'S PRESIDENT TO FORM ITS FIRST RIGHTWING GOVERNMENT SINCE WORLD WAR II AND SAID HE WOULD CREATE A WATCHDOG PANEL TO PREVENT CONFLICTS OF INTEREST WITH HIS BUSINESS EMPIRE AT A NEWS CONFERENCE IN ROME MR BERLUSCONI SAID HE WOULD BEGIN CONSULTATIONS WITH LABOR GROUPS INDUSTRY LEADERS AND HIS POLITICAL ALLIES ON MONDAY TO CREATE THE NEXT GOVERNMENT TOGETHER WITH HIS ELECTORAL ALLIES THE FEDERALIST NORTHERN LEAGUE AND THE EXFASCIST NATIONAL ALLIANCE MR BERLUSCONI'S FORZA ITALIA WON A MAJORITY IN THE LOWER HOUSE OF PARLIAMENT AND IS JUST SHORT OF A MAJORITY IN THE SENATE THE PRIME MINISTERDESIGNATE ALSO SAID HE DIDN'T PLAN TO SELL ANY OF HIS THREE NATIONAL TELEVISION NETWORKS DESPITE CRITICISM FROM OPPOSITION LEADERS AND THE NORTHERN LEAGUE OVER HIS INORDINATE INFLUENCE IN NATIONAL COMMUNICATIONS ALTHOUGH HE RESIGNED AS CHAIRMAN OF HIS FININVEST GROUP MEDIA CONGLOMERATE WHEN HE ENTERED THE POLITICAL ARENA IN JANUARY MR BERLUSCONI REMAINS THE MAJORITY SHAREHOLDER IN THE COMPANY HE SAID HE PLANNED TO APPOINT A COMMITTEE OF THREE EXPERTS TO PROPOSE NEW LEGISLATION TO THE EXISTING ANTITRUST LAWS IN SUCH A WAY TO AVOID EVEN THE SIMPLE HYPOTHESIS OF MIXING PUBLIC INTERESTS AND PRIVATE INTERESTS BY WHOEVER IS PRIME MINISTER AVOIDING POTENTIAL CONFLICTS OF INTEREST HAS BEEN A KEY ISSUE IN THE SELECTION OF MR BERLUSCONI AS PRIME MINISTER OPPOSITION PARTIES AS WELL AS THE NORTHERN LEAGUE HAVE CALLED FOR A COMPLETE SEPARATION OF MR BERLUSCONI'S WIDERANGING BUSINESS INTERESTS FROM HIS PUBLIC DUTIES AS A PREREQUISITE FOR HIS BECOMING PRIME MINISTER BESIDES TELEVISION THE FININVEST GROUP HAS INTERESTS IN ADVERTISING REAL ESTATE INSURANCE SOCCER AND DEPARTMENT STORES THE TOP PRIORITIES OF THE NEXT GOVERNMENT MR BERLUSCONI SAID WILL BE POLITICAL MORALITY PROMOTING AN ECONOMIC RECOVERY CUTTING THE PUBLICSECTOR DEFICIT IMPROVING SOCIAL SERVICES AND FIGHTING ORGANIZED CRIME I WON'T DISAPPOINT YOU HE DECLARED SEVERAL TIMES MR BERLUSCONI ATTEMPTED TO QUELL FEARS OF EXTREMISM IN PARTS OF HIS ALLIANCE AND PLAYED DOWN THE FREQUENT BICKERING AMONG HIS PARTNERS THAT MANY FEAR COULD LEAD TO AN UNSTABLE COALITION I FIND BALANCE AND GOOD SENSE IN MY ALLIES HE SAID THE PRIME MINISTERDESIGNATE WHO RECEIVED THE MANDATE FROM PRESIDENT OSCAR LUIGI SCALFARO WILL HAVE TO PRESENT HIS GOVERNMENT TO PARLIAMENT FOR A VOTE OF CONFIDENCE BEFORE IT CAN BE CONFIRMED ALTHOUGH HIS ALLIANCE IS JUST SHORT OF A MAJORITY IN THE SENATE SEVERAL DEFECTORS FROM A SPLINTER CENTER PARTY HAVE RECENTLY SAID THEY MAY SUPPORT THE GOVERNMENT 9404290163 940429 NTN TO BOOST US PRODUCTION TOKYO NTN CORP JAPAN'S LEADING BALL BEARING MAKER PLANS TO INVEST BETWEEN SIX BILLION AND SEVEN BILLION YEN OVER THE NEXT THREE YEARS IN ITS PLANT IN INDIANA US A COMPANY SPOKESMAN SAID THE COMPANY HAS WON A CONTRACT TO SUPPLY 220000 UNITS OF CONSTANT VELOCITY JOINTS TO FORD MOTOR CO NEXT YEAR BY 1997 NTN INTENDS TO DOUBLE ITS INDIANA PRODUCTION CAPACITY TO 240000 UNITS WHILE A DECLINE IN THE AUTO INDUSTRY IN JAPAN CAUSED NTN TO CUT ITS OUTPUT AT HOME ITS US BUSINESS HAS BEEN SURGING 9404290162 940429 MARKETING & MEDIA ENQUIRER/STAR GETS 315 MILLION OFFER BY INVESTOR GROUP BY ANITA SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL ENQUIRER/STAR GROUP INC SAID THE INVESTMENT GROUP THAT CONTROLS ABOUT 57 OF ITS COMMON STOCK OFFERED TO BUY THE REMAINING STAKE FOR ABOUT 315 MILLION PLUS THE ASSUMPTION OF DEBT UNDER THE PROPOSAL THE INVESTMENT GROUP COMPRISING MACFADDEN HOLDINGS INC AND BOSTON VENTURES LP WOULD PAY 1750 A SHARE FOR THE SUPERMARKETTABLOID PUBLISHER THE BID HELPED PUSH ENQUIRER/STAR'S STOCK TO 1725 UP 275 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE MACFADDEN A NEW YORK MAGAZINE PUBLISHER AND BOSTON VENTURES A VENTURECAPITAL COMPANY ALSO CONTROL 76 OF THE VOTING STOCK OF ENQUIRER/STAR THROUGH CLASS C SHARES WHICH AREN'T PUBLICLY TRADED THE COMPANY HAS ABOUT 417 MILLION COMMON SHARES OUTSTANDING THE BID SURPRISED INDUSTRY OBSERVERS I THINK THEY MACFADDEN AND BOSTON VENTURES ARE AS ASTOUNDED AS I AM AT HOW LOW THE STOCK WENT SAID ALAN GOTTESMAN AN ANALYST AT PAINEWEBBER INC IN NEW YORK ENQUIRER/STAR'S STOCK TRADED AS HIGH AS 19 EARLIER THIS YEAR BUT HAD FALLEN TO 1450 THIS WEEK IF THEY CAN GET IT AT 1750 MR GOTTESMAN CONTINUED THE ECONOMIES TO THEM ARE JUST PHENOMENAL HOWEVER HE ADDED MY GUESS IS THE DEAL WON'T HAPPEN ON THE FIRST BID ENQUIRER/STAR WHICH IS BASED IN LANTANA FLA SAID IT WILL APPOINT A SPECIAL COMMITTEE OF ITS INDEPENDENT DIRECTORS TO EVALUATE THE PROPOSAL THE ACQUISITION IS SUBJECT TO THAT COMMITTEE'S APPROVAL AS WELL AS TO THE INVESTMENT GROUP OBTAINING BANK FINANCING BOTH MACFADDEN AND BOSTON VENTURES DECLINED TO COMMENT THE TABLOIDS OWNED BY ENQUIRER/STAR ARE ATTRACTIVE LARGELY BECAUSE OF THE CASH THEY GENERATE FOR THE NINE MONTHS ENDED DEC 27 ENQUIRER/STAR EARNED 207 MILLION OR 50 CENTS A SHARE ON REVENUE OF 2252 MILLION FOR THE COMPARABLE NINE MONTHS IN 1992 EARNINGS WERE 142 MILLION OR 34 CENTS A SHARE ON REVENUE OF 2089 MILLION IF THE INVESTMENT GROUP SUCCEEDS IN BUYING ENQUIRER/STAR'S REMAINING SHARES THE LATTER'S OPERATIONS AREN'T LIKELY TO CHANGE SIGNIFICANTLY ACCORDING TO AN INDIVIDUAL CLOSE TO BOTH COMPANIES MACFADDEN AND ENQUIRER/STAR ALREADY SHARE SOME MANAGEMENT INCLUDING PETER J CALLAHAN WHO IS CHAIRMAN OF BOTH CONCERNS IN 1989 MACFADDEN BACKED BY BOSTON VENTURES MONEY PAID 4125 MILLION FOR THE ENQUIRER NEWSPAPER AND ITS COMPANION WEEKLY WORLD NEWS THE FOLLOWING YEAR THE NEW OWNERS PAID 400 MILLION IN CASH AND STOCK TO BUY THE STAR FROM RUPERT MURDOCH'S NEWS CORP ENQUIRER/STAR BECAME A PUBLIC COMPANY IN 1991 OFFERING ABOUT 135 MILLION SHARES FOR 14 A SHARE MACFADDEN A LOWPROFILE CONCERN OWNS SUCH MAGAZINES AS TEEN BEAT AND TRUE STORY BOSTON VENTURES SPECIALIZES IN MEDIA AND COMMUNICATIONS AND UNTIL RECENTLY HEADED THE INVESTMENT GROUP THAT OWNED MOTOWN RECORDS 9404290161 940429 INTERNATIONAL ISRAEL AND PLO TARGET MAY 4 TO SIGN ACCORD BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL CAIRO AFTER SEVEN MONTHS OF BARGAINING FRUSTRATION AND VIOLENCE ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION SET NEXT WEDNESDAY AS THE DATE FOR SIGNING THE LONGDELAYED FINAL ACCORD CLEARING THE WAY FOR LIMITED PALESTINIAN AUTONOMY AFTER A SERIES OF MEETINGS HERE THAT LEFT SEVERAL ISSUES UNRESOLVED EGYPTIAN PRESIDENT HOSNI MUBARAK ANNOUNCED A TARGET DATE OF MAY 4 FOR CONCLUDING THE AGREEMENT AND SAID BOTH PARTIES AGREED ON THE DATE THE SIGNATURES WILL BE ON THE FOURTH MR MUBARAK WAS JOINED AT A NEWS CONFERENCE AT THE ITTIHADIA PRESIDENTIAL PALACE WHERE MOST OF YESTERDAY'S DIPLOMACY TOOK PLACE BY US SECRETARY OF STATE WARREN CHRISTOPHER PLO CHAIRMAN YASSER ARAFAT AND ISRAELI FOREIGN MINISTER SHIMON PERES ISRAELI PRIME MINISTER YITZHAK RABIN AND MR ARAFAT PLAN TO MEET IN CAIRO TUESDAY EVENING TO TRY TO IRON OUT TWO THORNY ISSUES THAT GO TO THE HEART OF BALANCING ISRAEL'S CONCERNS ABOUT SECURITY WITH THE PALESTINIANS' DESIRE FOR SOVEREIGNTY INITIALLY IN THE GAZA STRIP AND WEST BANK TOWN OF JERICHO AND LATER THROUGHOUT THE WEST BANK THE PROBLEMS INVOLVE HOW LARGE AN AREA AROUND JERICHO THE ISRAELIS WILL CEDE TO PALESTINIAN SELFRULE AND THE COMPOSITION OF A PALESTINIAN POLICE FORCE INCLUDING ITS ROLE AT THE CROSSING POINTS BETWEEN THE WEST BANK AND JORDAN AND BETWEEN EGYPT AND GAZA MESSRS RABIN AND ARAFAT ALSO WILL HAVE TO WORK OUT A DEMAND FOR ISRAELI RECOGNITION OF THE PALESTINIANS' CLAIM OF TERRITORIAL WATERS OFF THE GAZA COAST IN ADDITION MR MUBARAK SAID THERE WERE SOME SMALL ISSUES TO WORK OUT ACCORDING TO ISRAELI SOURCES IN CAIRO ISRAEL AGREED LATE LAST NIGHT TO PERMIT THE PALESTINIANS TO ISSUE THEIR OWN STAMPS AND HAVE THEIR OWN TELEPHONE AREA CODE CURRENCY AND TRAVEL DOCUMENT MR CHRISTOPHER WHOSE IMAGE WOULD BE BURNISHED BY A FOREIGNPOLICY SUCCESS PLANS TO REMAIN IN THE MIDDLE EAST HELPING TO NUDGE THE PARTIES ALONG AND TO ATTEND THE SIGNING CEREMONY HE SAID THAT DURING YESTERDAY'S MEETINGS HE WAS IMPRESSED BY THE SENSE OF URGENCY THAT BOTH SIDES NOW HAVE A SENIOR US OFFICIAL SAID THE FACT THAT ISRAEL AND THE PLO GAVE THEIR PLEDGE TO MEET THE MAY 4 DATE IN THE PRESENCE OF MESSRS MUBARAK AND CHRISTOPHER PUTS GREATER PRESSURE ON BOTH SIDES TO COMPLY FOR ISRAELIS AND PALESTINIANS IT HAS BEEN A DIFFICULT PATH FROM THE SOUTH LAWN OF THE WHITE HOUSE WHERE THEY SIGNED THE OUTLINE OF A PEACE ACCORD LAST SEPT 13 THE NEGOTIATIONS HAVE BEEN PUNCTUATED BY VIOLENCE INCLUDING FEBRUARY'S MASSACRE OF PALESTINIAN WORSHIPERS IN A MOSQUE IN HEBRON AND SEVERAL BLOODY RESPONSES BY RADICAL PALESTINIANS THE AGREEMENT SET FOR NEXT WEDNESDAY WAS SUPPOSED TO HAVE GONE INTO EFFECT LAST DEC 13 WITH ISRAELI MILITARY WITHDRAWAL FROM JERICHO AND GAZA COMPLETED BY APRIL 13 MR PERES SAID YESTERDAY FOR US I THINK IT'S THE END OF A LONG VOYAGE AND BEGINNING OF A NEW CHAPTER IN THE RELATIONS BETWEEN THE PALESTINIAN PEOPLE AND OURSELVES MEANWHILE IN RELATED TALKS TAKING PLACE IN PARIS ISRAEL AND THE PLO REMOVED ALL MAJOR OBSTACLES TO AN AGREEMENT COVERING ECONOMIC RELATIONS BETWEEN ISRAEL AND FUTURE SELFGOVERNING PALESTINIAN AREAS REUTERS NEWS SERVICE REPORTED THE TWO SIDES EXPECT TO COMPLETE AN ACCORD TODAY 9404290160 940429 MARKETING & MEDIA P&G FINDS HOLES IN UNILEVER BLEACH DOTTING EUROPE CINCINNATI FIRM SAYS BRAND EATS' FABRIC RIVAL SAYS ALLEGATIONS DON'T WASH BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL IF YOUR LAUNDRY DETERGENT BORED HOLES IN YOUR UNDERWEAR YOU'D PROBABLY WANT TO KNOW AT LEAST THAT'S WHAT PROCTER & GAMBLE CO FIGURES P&G IS IN A LATHER OVER A NEW UNILEVER GROUP PRODUCT ON SALE IN PARTS OF EUROPE THAT CLAIMS TO BLEACH CLOTHING FASTER AND AT LOWER TEMPERATURES THAN RIVALS SUCH AS P&G'S EUROPEAN BRAND ARIEL EARLIER THIS WEEK A P&G EXECUTIVE IN THE NETHERLANDS ACCUSED UNILEVER'S OMO POWER OF EATING THROUGH FABRIC AFTER TWO DOZEN WASHINGS UNILEVER DIDN'T TAKE WELL TO THE MUDSLINGING IT COUNTERED BY SENDING OUT SCIENTISTS AND EXECUTIVES LADEN WITH TEA TOWELS AND LADIES' UNDERGARMENTS WHICH THEY CLAIMED HAD EMERGED UNSCATHED FROM FREQUENT WASHINGS IN THE NEW PRODUCT SOME OF THE GARMENTS HAD BEEN WASHED 100 TIMES OTHERS NEARLY 400 ACCORDING TO UNILEVER CAN YOU SEE ANY HOLES A UNILEVER SCIENTIST ASKED REPORTERS WHO WERE CALLED TO A NEWS CONFERENCE AT ITS EUROPEAN BASE IN ROTTERDAM PURE NONSENSE SAID AN EXECUTIVE OF P&G'S CHARGES P&G IS MAINTAINING A HOLIERTHANTHOU ATTITUDE I THINK WE'RE WORRIED ABOUT THE CLOTHES THERE'S A FABRICSAFETY ISSUE HERE SAYS A SPOKESMAN AT P&G'S CINCINNATI HEADQUARTERS WE'RE OUT TO PROTECT CONSUMERS OF P&G PRODUCTS BESIDES HE ADDS P&G BRANDS COULD BE BLAMED FOR FABRIC DAMAGE THAT WAS REALLY CAUSED BY OMO POWER FOR THE GOOD OF CONSUMERS AND FABRICS P&G RECENTLY BOUGHT OMO POWER TESTING IT ON SHIRTS BRIEFS TEA TOWELS AND BLOUSES IT THEN PRIVATELY APPROACHED UNILEVER WITH INHOUSE TEST RESULTS THAT PROVE P&G CONTENDS THAT OMO POWER FRAYS FABRIC IN FREQUENT WASHINGS SAYS A UNILEVER SPOKESMAN THEIR RESULTS DO NOT LOOK LIKE OUR RESULTS EARLIER THIS WEEK A P&G GENERAL MANAGER IN THE NETHERLANDS STEF KRANENDIJK TOLD A ROTTERDAM NEWSPAPER THAT UNILEVER'S TECHNOLOGY CAN CAUSE DAMAGE TO TEXTILES SUCH AS CLOTHING AND HAND AND TEA TOWELS IN 24 WASHES MOREOVER MR KRANENDIJK SAID THAT P&G HAS KNOWN OF OMO POWER'S ACCELERATED BLEACHING TECHNOLOGY FOR 20 YEARS BUT NEVER USED IT BECAUSE OF ITS THREAT TO FABRIC P&G WHICH HAS HIRED SEVERAL LABORATORIES IN EUROPE TO TEST OMO POWER INDEPENDENTLY EXPECTS RESULTS NEXT MONTH UNILEVER AND P&G HAVE LONG BEEN AT ODDS IN SUPERMARKETS AND LAUNDRY ROOMS WITH P&G RECENTLY GAINING ON ITS ANGLODUTCH COMPETITOR OMO POWER WHICH BLEACHES FABRICS FASTER AND AT LOWERTHANUSUAL TEMPERATURES BECAUSE OF A NEW MOLECULE IN ITS INGREDIENT LIST IS CURRENTLY AVAILABLE ONLY IN THE NETHERLANDS AND SWITZERLAND IT WILL SOON BE ROLLED OUT UNDER OTHER UNILEVER BRAND NAMES ACROSS EUROPE THE STAKES ARE HIGH UNILEVER SAYS IT ALREADY HAS SPENT 100 MILLION 151 MILLION IN THREE FACTORIES TO PRODUCE THE BRAND AND PLANS TO SPEND AN ADDITIONAL 200 MILLION TO PROMOTE IT UNILEVER IS STUDYING HOW TO HANDLE P&G'S CHALLENGE THIS IS OF COURSE A VERY SERIOUS ALLEGATION SAYS THE UNILEVER SPOKESMAN 9404290159 940429 INTERNATIONAL EGYPTIAN COURT SENTENCES CLERIC TO 7 YEARS IN PRISON CAIRO EGYPT AP A COURT HERE SENTENCED AN EGYPTIAN CLERIC WHO ALSO FACES CHARGES IN THE US TO SEVEN YEARS IN PRISON FOR HIS ROLE IN A 1989 DEMONSTRATION IN WHICH TWO POLICEMEN WERE INJURED THE EGYPTIAN COURT CONVICTED AND SENTENCED SHEIK OMAR ABDELRAHMAN ON CHARGES THAT HE WAS ACQUITTED OF IN 1990 FOR LACK OF EVIDENCE SHORTLY AFTER HIS ACQUITTAL HE RECEIVED A US VISA AND MOVED TO THE US SHEIK ABDELRAHMAN 55 YEARS OLD IS BEING HELD IN A FEDERAL DETENTION CENTER IN NEW YORK STATE HE IS ACCUSED OF CONSPIRING TO OVERTHROW THE US GOVERNMENT BY PLOTTING A SERIES OF BOMBINGS KIDNAPPINGS AND MURDERS EGYPT HAS ASKED THE US TO EXTRADITE THE SHEIK BUT A US JUDGE HAS HELD UP A DEPORTATION ORDER EVEN IF HE IS ACQUITTED OF THE CHARGES IN THE US WASHINGTON COULD BLOCK HIS DEPORTATION ON GROUNDS THAT HE COULD FACE POLITICAL OR RELIGIOUS PERSECUTION IN EGYPT THE CLERIC WHO IS BLIND AND DIABETIC IS CONSIDERED A SPIRITUAL LEADER BY MANY MEMBERS OF THE EXTREMIST ALGAMAA ALISLAMIYA OR ISLAMIC GROUP 9404290158 940429 WHO'S NEWS ORACLE CORP ORACLE CORP REDWOOD SHORES CALIF BARRY M ARIKO 48 YEARS OLD FORMERLY VICE PRESIDENT OF TANDEM COMPUTERS INC WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT THE AMERICAS BY THIS SOFTWARE CONCERN 9404290157 940429 WHEN MOM TAUGHT BUSINESS 101 SHE PAID FOR THE LEMONADE HERSELF BY MATT MURRAY STAFF REPORTER OF THE WALL STREET JOURNAL CHAGRIN FALLS OHIO THIRDGRADERS AT SANDS ELEMENTARY SCHOOL HERE ARE LEARNING ABOUT SUPPLY DEMAND INVENTORY AND PROFIT ESPECIALLY PROFIT ON MONDAY 63 OF THEM TROOPED INTO NATIONAL CITY BANK TO PICK UP A LOAN CHECK FOR 200 AT 8 ANNUAL INTEREST THEY THEN HEADED TO A NEARBY GROCERY STORE WHERE THEY INVESTED THE CASH IN INVENTORY CANDY POPCORN AND KOOLAID TODAY FOR A SCHOOL SHOWING OF THE CHILDREN'S MOVIE THE ADVENTURES OF MILO AND OTIS THEY WILL SET UP A COUNTER TO SELL THE SNACKS AND WITH EVERYTHING PRICED AT 50 CENTS HEALTHY PROFIT MARGINS WILL ABOUND THE MARKUP ON POPCORN WHICH COSTS FIVE CENTS A BAG TO MAKE WILL BE 900 KOOLAID WHICH COSTS 18 CENTS A GLASS TO MAKE WILL BE MARKED UP 180 SLUSH PUPPIES DRINKS THAT RESEMBLE FRUITFLAVORED SLEET WILL CLEAR A RELATIVELY MODEST 100 EVERY YEAR THIRDGRADERS HERE LAUNCH A BUSINESS AS PART OF THEIR ECONOMICS CURRICULUM SOME WONDER IF THE SCHOOL IS TAKING ADVANTAGE OF ITS MONOPOLY I HAVE A FEELING IT DOESN'T QUITE COST THEM 50 CENTS TO MAKE A SLUSHIE CONCEDES JANICE DIMICHELE A LOCAL BUSINESSWOMAN AND INFORMAL ADVISER BUT THE TEACHERS SAY MAKING A PROFIT AND LEARNING TO USE IT RESPONSIBLY ARE PART OF THE LESSON WE MAKE THE POPCORN REAL SALTY AND THEN THEY BUY THE DRINKS JOKES ONE BARB TERVO THE MESSAGE SINKS IN ESPECIALLY WHEN THE CHILDREN CONSIDER THAT THEY COULD EACH OWE THE BANK MORE THAN 3 THAT'LL BE MAYBE TWO WEEKS' ALLOWANCE CALCULATES ROBBY FERNALD NINE YEARS OLD IT'S DIFFERENT TO ACTUALLY HAVE A REAL BUSINESS INSTEAD OF PLAYING WITH MONOPOLY MONEY BUT THERE'S LITTLE CHANCE OF A LOSS THE LAST TWO CLASSES TURNED TIDY PROFITS AND THE TEACHERS EXPECT THEIR BEST EARNINGS YET IN FISCAL 1994 THEIR FORECAST 200 AFTER THEY PAY THE BANK 20133 NEXT WEEK THE PROFIT WILL GO TOWARD A WORTHY CAUSE OF THE CHILDREN'S CHOOSING PAST EARNINGS HAVE BEEN USED TO PURCHASE AN ACRE OF RAINFOREST CONTRIBUTE TO THE LOCAL HISTORICAL SOCIETY AND BUY FLOWER POTS FOR THE KIDS' MOMS ON MOTHER'S DAY ANY LEFTOVER CANDY WILL BE EATEN 9404290156 940429 EUROPEAN CAR RECYCLING ACCORD BRUSSELS EUROPEAN CAR MAKERS BAYERISCHE MOTEREN WERKE AG OF GERMANY FIAT SPA OF ITALY AND FRANCE'S RENAULT SA SIGNED AN AGREEMENT YESTERDAY AIMED AT DEVELOPING A JOINT EUROPEAN AUTOMOBILE RECYCLING NETWORK IN A STATEMENT THE COMPANIES SAID THE ACCORD WOULD MEAN THAT EACH MANUFACTURER TAKES CARE OF THE RECYCLING NETWORK IN ITS HOME MARKET FOR ITS OWN AND ITS PARTNERS' VEHICLES THEY SAID THE PARTNERSHIP IS OPEN TO ALL OTHER CAR MANUFACTURERS WILLING TO CONTRIBUTE THEIR ACTIVITIES ABOUT 10 MILLION CARS ARE SCRAPPED IN EUROPE EACH YEAR WITH ABOUT 75 OF THE SCRAP BEING REUSED THE AIM IS TO INCREASE REUSE TO 85 BY 2002 AND 95 BY 2015 9404290155 940429 SHAW INDUSTRIES FILES LAWSUIT AGAINST RIVAL DIAMOND RUG & CARPET DALTON GA SHAW INDUSTRIES INC SAID IT FILED A LAWSUIT AGAINST RIVAL CARPET MAKER DIAMOND RUG & CARPET MILLS INC CHATSWORTH GA ALLEGING INDUSTRIAL ESPIONAGE AND THEFT OF CORPORATE PROPERTY THE LAWSUIT FILED IN SUPERIOR COURT IN WHITFIELD COUNTY GA CHARGES DIAMOND WITH VIOLATIONS OF NUMEROUS STATE LAWS ACCORDING TO SHAW THE COMPANY DECLINED TO ELABORATE AND A COPY OF THE SUIT WASN'T IMMEDIATELY AVAILABLE EXECUTIVES AT CLOSELY HELD DIAMOND COULDN'T BE REACHED FOR COMMENT THE ACTION FOLLOWS A LAWSUIT FILED AGAINST SHAW LAST YEAR BY DIAMOND ACCUSING SHAW OF PRICEFIXING TRADE RESTRAINT AND MONOPOLIZATION THAT SUIT FILED IN FEDERAL DISTRICT COURT IN ROME GA SEEKS 225 MILLION IN DAMAGES AT THE TIME OF THE FILING SHAW SAID IT WOULD VIGOROUSLY DEFEND THE ACTION 9404290154 940429 BUSINESS & RACE BY LEON E WYNTER THE TRADITIONAL STABILITY OF INFORMAL KOREANAMERICAN LENDING ASSOCIATIONS KNOWN AS KYES HAS BEEN SHAKEN BY THE STRING OF DISASTERS IN SOUTHERN CALIFORNIA RIOTS RECESSION AND EARTHQUAKES HAVE UNDERMINED THE CASH FLOW OF MANY SMALL BUSINESSES THAT FINANCE ONE ANOTHER THROUGH KYES TYPICALLY ABOUT 25 PARTNERS POOL PAYMENTS EACH MONTH AND AUCTION THE POT OFF TO THE PARTNER WILLING TO PAY THE HIGHEST INTEREST BUT THE PERCEPTION OF RISK INCREASED LAST FALL AFTER A LOS ANGELES JUDGE REFUSED TO ALLOW PARTICIPANTS TO PURSUE THEIR CLAIMS AGAINST A FAILED KYE RULING THAT THE INFORMAL AGREEMENT WAS NOT ENFORCEABLE WITH THE STATE'S WEAK ECONOMY MANY MORE STORES FINANCED BY KYES AND BANK LOANS DON'T MAKE ENOUGH FOR THE BANK AND THE KYE AND THE PERSON TO SURVIVE THAT'S WHAT'S HAPPENING TO THE KYE RIGHT NOW SAYS DANIEL OH VICE PRESIDENT OF THE KOREAN RESTAURANT ASSOCIATION OF SOUTHERN CALIFORNIA HE SAYS MEMBERS OF HIS TRADE ASSOCIATION NOW INSIST ON WRITTEN PROMISSORY NOTES WHEN THEY PARTICIPATE IN KYES KOREAN COMMUNITY NEWSPAPERS HAVE RUN STORIES ABOUT AVOIDING RISK IN KYES THAT SOMETIMES POOL UP TO 1 MILLION A MONTH SAYS ALEX OH OF THE KOREAN CENTRAL DAILY OF PARAMOUNT IMPORTANCE SAYS MR OH IS TO KNOW THE KYE ORGANIZER BECAUSE FRAUD IS CREEPING INTO THE FASTGROWING BUSINESS COMMUNITY IN WHICH MEMBERS DON'T NECESSARILY KNOW ONE ANOTHER ANYMORE THE PAPER RECENTLY REPORTED A CASE OF AN ORGANIZER WHO ALLEGEDLY DISAPPEARED WITH 450000 LOS ANGELES POLICE SPOKESMEN CONFIRMED THAT THEY ARE INVESTIGATING THE AVERAGE NURSING HOME COMBINES MOSTLY ELDERLY WHITE PATIENTS RAISED LONG BEFORE THE CIVIL RIGHTS MOVEMENT AND A STAFF OF MANY NONWHITES AND IMMIGRANTS A NEW YORK NURSING HOME IS TRYING TO PROTECT THOSE CAREGIVERS FROM THE DISTURBING RACIST BEHAVIOR OF SOME ALZHEIMER'S PATIENTS AT A RECENT WEEKLY SUPPORT MEETING AT THE HEBREW HOME FOR THE AGED AT RIVERDALE WHOSE STAFF IS 73 NONWHITE NURSES AND NURSES' AIDES WONDERED ALOUD AT HOW SOME BEFUDDLED PATIENTS CAN LUCIDLY FALL BACK ON RACIAL ATTITUDES FROM THE DEPRESSION THERE ARE MEMORIES THAT ARE RIVETED TO THE THINGS OF THE PAST THEY WILL REMEMBER THEIR PARENTS' NAMES AND THAT YOU ARE A NIGGER SAYS A NURSE FROM JAMAICA THE PROBLEM IS PARTICULARLY TROUBLESOME BECAUSE THE NURSES' 50 PATIENTS ARE IN THE EARLY STAGES OF DEMENTIA AND SOMETIMES APPEAR TO BE RESPONSIBLE FOR THEIR OUTBURSTS SAYS SOCIAL WORKER ROBIN BOURU ELDERS ARE GENERALLY REVERED IN THE NURSES' HOMELANDS IN AFRICA ASIA AND THE CARIBBEAN ONE NURSE RECALLS BEING HAUNTED BY A PATIENT'S PROPHESY THAT SHE WOULD BE HIT BY A TRUCK BACK HOME IN AFRICA WHEN AN OLDER PERSON CURSES YOU YOU'RE CURSED SAYS A GHANAIAN NURSE STAFFERS ALSO ENDURE ABUSE FROM CHILDREN WHO FEEL GUILTY ABOUT INSTITUTIONALIZING A PARENT DESPITE THE OFFENSIVE INCIDENTS THE STAFFERS HAVE HIGH MORALE AND SAY THEY OFTEN DEVELOP CLOSE RELATIONSHIPS WITH THEIR PATIENTS TRAINING COORDINATOR MYRA BRYCE RICHARDSON ADVISES THE NURSES TO OVERCOME THE URGE TO RETALIATE BY SEEING THE VERBAL ATTACKS AS SYMPTOMS OF ILLNESS NOT CHARACTER PRELIMINARY RESULTS OF A STUDY AT 15 NEW YORKAREA NURSING HOMES SUGGEST THAT REGULAR INSERVICE TRAINING MAKES NURSES LESS LIKELY TO TAKE IT PERSONALLY REDUCING STRESS ON THE JOB HARPER'S MAGAZINE REPORTED WITHOUT COMMENT THAT MILLER BREWING GIVES 150000 A YEAR TO ITS BLACK SCHOLARSHIP PROGRAM BUT SPENDS DOUBLE THAT TO PROMOTE IT MILLER WON'T COMMENT ON THE FIGURES BUT NOTES THAT THE THURGOOD MARSHALL SCHOLARSHIP FUND KEEPS 87 DESERVING BLACK STUDENTS IN COLLEGE NOEL HANKIN DIRECTOR OF CORPORATE RELATIONS FOR THE PHILIP MORRIS UNIT SAYS PART OF THE PROMOTIONAL BUDGET GOES TO EXPENSIVE TELEVISION PLUGS LINKING MILLER AND THE FUND IT ALSO BOUGHT ADVERTISING IN BLACK PUBLICATIONS SALUTING BLACK EDUCATION THE ADS CARRIED MODEST LOGOS FOR MILLER AS WELL AS FOR THE FUND AND AN 800 NUMBER THE FUND SPENDS ABOUT 348000 A YEAR ON THE STUDENTS MR HANKIN SAYS AND MILLER IS BY FAR THE LARGEST CONTRIBUTOR HE SAYS MILLER SPENDS MORE ON PROMOTING THE FUND TO ATTRACT DONATIONS THAN IT RECEIVES IN CONTRIBUTIONS TO IT MR HANKIN SAYS THE TINY FUND WANTS TO GET OUT FROM BEHIND THE SHADOW OF THE WELLKNOWN UNITED NEGRO COLLEGE FUND A PRODIGIOUS FUND RAISER THE UNCF AIDS BLACK PRIVATE COLLEGES THE THURGOOD MARSHALL FUND SERVES A LARGER NUMBER OF BLACK PUBLIC UNIVERSITIES WHICH ENROLL MORE THAN 70 OF ALL STUDENTS AT HISTORICALLY BLACK SCHOOLS YES WE DO MENTION MILLER BUT FOR GOOD REASON WE'RE THE ONES PROMOTING THE AWARENESS OF THE FUND MR HANKIN SAYS IT ISN'T UNUSUAL FOR FIRMS TO DONATE FAR LESS THAN THEY SPEND ON PROMOTING CHARITIES A RATIO OF 2TO1 OR 3TO1 IS COMMON SAYS CRAIG SMITH PRESIDENT OF CORPORATE CITIZEN A SEATTLE THINK TANK THAT STUDIES CORPORATE GIVING ORGANIZATIONS SUPPORTING BLACK HISPANIC ASIAN AND NATIVE AMERICAN CAUSES RECEIVED 17 OF SPENDING BY LARGE FIRMS ACCORDING TO A STUDY OF CORPORATE PHILANTHROPY THE GROUPS ACCOUNT FOR 24 OF THE US POPULATION THE UNRELEASED ANALYSIS OF 1988 DATA BY THE WASHINGTONBASED NATIONAL COMMITTEE FOR RESPONSIVE PHILANTHROPY FOUND OIL COMPANIES THE MOST GENEROUS AVERAGING 24 MILLION PER FIRM ABOUT HALF OF ALL AMERICAN MANAGERS SENT ABROAD FAIL IN THEIR MISSION ACCORDING TO UNIVERSITY OF MARYLAND BUSINESS PROFESSOR MARTIN GANNON IN A NEW BOOK MR GANNON PRESCRIBES THE STUDY OF METAPHORS THAT CAPTURE THE VALUES AND ATTITUDES OF OTHER CULTURES AS FOOTBALL DOES FOR AMERICANS IN CHINA FOR EXAMPLE AN AMERICAN BUSINESSMAN SHOULD VISUALIZE A FAMILY ALTAR TO GET IN TOUCH WITH THE CHINESE SENSE OF CONNECTION WITH VENERATED ANCESTORS 9404290153 940429 US DUE 405 MILLION IN COMPUTER CONCERN'S BANKRUPTCY AGREEMENT NEW YORK THE FEDERAL GOVERNMENT WILL RECOVER ABOUT 405 MILLION IN CASH PAYMENTS AND FUTURE TAX ADJUSTMENTS FROM THE BANKRUPTCY ESTATE OF CONTINENTAL INFORMATION SYSTEMS CORP UNDER THE TERMS OF A SETTLEMENT AGREEMENT APPROVED BY A US BANKRUPTCY COURT JUDGE IN NEW YORK THE SYRACUSE NYBASED COMPUTERLEASING COMPANY WHICH FILED FOR REORGANIZATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN JANUARY 1989 WILL PAY 30 MILLION IN CASH AND 105 MILLION IN REDUCED TAX OBLIGATIONS THE GOVERNMENT WAS THE SINGLE LARGEST CREDITOR OF THE CIS ESTATE WITH CLAIMS EXCEEDING 100 MILLION ON BEHALF OF THE INTERNAL REVENUE SERVICE THE CLAIMS STEMMED FROM UNPAID TAX LIABILITIES FOR THE YEARS 1984 THROUGH 1990 ACCORDING TO THE US ATTORNEY'S OFFICE IN NEW YORK WHICH PROSECUTED THE CLAIM 9404290152 940429 TECHNOLOGY & HEALTH ADVANCED MICRO LOSES HOLDERS' VOTE ON ITS POISON PILL BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL ADVANCED MICRO DEVICES INC UNEXPECTEDLY LOST A SHAREHOLDER VOTE OVER THE COMPANY'S POISONPILL TAKEOVER DEFENSE RAISING QUESTIONS ABOUT POTENTIAL SHAREHOLDER DISCONTENT WITH THE SEMICONDUCTOR MAKER THE SHAREHOLDER RESOLUTION WHICH WAS OPPOSED BY MANAGEMENT PASSED AT AMD'S ANNUAL MEETING WEDNESDAY THOUGH NOT BINDING ON THE COMPANY THE MEASURE ASKS AMD'S BOARD TO REPEAL ITS 1990 POISONPILL PLAN OR PUT IT TO A SHAREHOLDER VOTE AT A SPECIAL MEETING ANY MANAGEMENT LOSS IS CONSIDERED BIG NEWS AMONG THOSE WHO TRACK SHAREHOLDER RESOLUTIONS OF 378 SHAREHOLDERBACKED PROPOSALS IN 1993 ONLY 12 WON MAJORITIES ACCORDING TO THE INVESTOR RESPONSIBILITY RESEARCH CENTER INC A RESEARCH GROUP IN WASHINGTON PROPOSALS AGAINST POISON PILLS HAVE DONE BETTER THAN MOST WINNING AN AVERAGE OF 44 OF THE VOTE IN EACH CASE THE IRRC ESTIMATES MANY INSTITUTIONAL INVESTORS AUTOMATICALLY VOTE AGAINST THE PLANS ARGUING THAT THEY DEPRESS STOCK PRICES THAT MIGHT RISE IN A HOSTILE TAKEOVER POISON PILLS GIVE SHAREHOLDERS RIGHTS TO BUY STOCK AT A DISCOUNT FROM THE MARKET PRICE IN THE EVENT OF A TAKEOVER DILUTING THE VALUE AND VOTING POWER OF A HOSTILE ACQUIRER'S SHARES JACK GERAGHTY AN ANALYST AT CS FIRST BOSTON SPECULATED THAT AMD'S VOTE PROBABLY REFLECTS GENERAL OPPOSITION TO THE PLANS RATHER THAN FACTORS SPECIFIC TO AMD BUT PEG O'HARA DIRECTOR OF COMMUNICATIONS AT IRRC SAID ANTIPOISONPILL PLANS HAVE TENDED TO WIN AT COMPANIES WHERE INVESTORS HAVE OTHER COMPLAINTS IN AMD'S CASE INVESTORS SUCH AS THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM HAVE COMPLAINED ABOUT AMD'S PAST FINANCIAL PERFORMANCE AND THE COMPENSATION OF ITS CHIEF EXECUTIVE OFFICER WJ SANDERS IN 1993 MR SANDERS EARNED 3 MILLION IN SALARY AND BONUS AND REALIZED 83 MILLION IN STOCKOPTION GAINS STEPHANIE NORTH ASSISTANT DIRECTOR OF THE LONGVIEW COLLECTIVE INVESTMENT FUND WHICH PROPOSED THE MEASURE THINKS OPPOSITION TO POISON PILLS COMBINED WITH INVESTOR CONCERNS ABOUT AMD I THINK IT DOESN'T INDICATE THAT THERE IS A LOT OF FAITH IN MANAGEMENT SHE SAID OF THE VOTE AMD BASED IN SUNNYVALE CALIF DIDN'T DISCLOSE THE PRECISE VOTE ON THE MEASURE AND MR SANDERS WASN'T AVAILABLE FOR A COMMENT IN A PREPARED STATEMENT A COMPANY SPOKESMAN SAID THE BOARD WILL STUDY THE STOCKHOLDERS RESOLUTION AND DO WHATEVER IS APPROPRIATE AND IN THE INTERESTS OF THE CORPORATION AND ITS STOCKHOLDERS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ADM SHARES FELL 875 CENTS TO 26END 9404290151 940429 WHO'S NEWS CORNING INC CORNING INC CORNING NY RANDY H THURMAN 44 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CORNING LAB SERVICES INC A WHOLLY OWNED SUBSIDIARY OF THE MAKER OF SPECIALTY MATERIALS CONSUMER HOUSEWARES TELECOMMUNICATIONS PRODUCTS AND LABORATORY MATERIALS HE SUCCEEDS E MARTIN GIBSON 55 WHO CONTINUES AS CHAIRMAN OF THE UNIT MR THURMAN ALSO WILL CONTINUE IN HIS ROLE AS CHAIRMAN OF CORNING'S METPATH INC LABORATORY TESTING BUSINESS 9404290150 940429 WHO'S NEWS BOSTON EDISON CO BOSTON EDISON CO BOSTON THOMAS J MAY 46 YEARS OLD WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OF THIS ELECTRIC POWER COMPANY EFFECTIVE JULY 1 SUCCEEDING BERNARD W REZNICEK WHO WILL RETIRE FROM THE POSTS BUT SERVE AS VICE CHAIRMAN AFTER JULY 1 MR REZNICEK 57 WILL BECOME DEAN OF THE CREIGHTON UNIVERSITY COLLEGE OF BUSINESS ADMINISTRATION IN OMAHA NEB MR MAY HAD BEEN PRESIDENT AND CHIEF OPERATING OFFICER GEORGE W DAVIS 60 AN EXECUTIVE VICE PRESIDENT AND MEMBER OF THE BOARD WAS ELECTED TO SUCCEED MR MAY IN THE TWO POSITIONS ALSO EFFECTIVE JULY 1 9404290149 940429 ATTORNEY IS CONVICTED ON EXTORTION CHARGE IN PEPSI MOUSE CASE WHITE PLAINS NY A WESTCHESTER COUNTY NY ATTORNEY WAS CONVICTED OF EXTORTION FOR THREATENING TO FILE A LAWSUIT AGAINST PEPSI COLA CO THAT FALSELY CLAIMED SHE HAD FOUND A DEAD MOUSE IN A CAN OF CAFFEINE FREE DIET PEPSI NANCI WALTER A SOMERS NY MATRIMONIAL LAWYER WAS FOUND GUILTY BY A FEDERAL COURT JURY AFTER A FOURDAY TRIAL PROSECUTORS HAD ARGUED THAT MS WALTER MADE A FALSE REPORT TO THE FOOD AND DRUG ADMINISTRATION AND TO PEPSI COLA A UNIT OF PEPSICO INC LAST JUNE AT THAT TIME THE PURCHASE NY FOOD AND BEVERAGE CONCERN WAS RECEIVING SEVERAL FRAUDULENT REPORTS OF SYRINGES AND OTHER OBJECTS IN ITS SODA CANS MS WALTER FACES UP TO 30 YEARS IN JAIL AND 750000 IN FINES ACCORDING TO ASSISTANT US ATTORNEY TERESA A PESCE ANTHONY M GIORDANO MS WALTER'S ATTORNEY SAID HE WILL APPEAL THE VERDICT THERE WAS NO EVIDENCE THAT MY CLIENT DID ANYTHING WRONG HE SAID 9404290148 940429 INTERNATIONAL SAMSUNG SETS ACCORD WITH NISSAN MOTOR TO PRODUCE AUTOS REACTION IS NEGATIVE BY WALL STREET JOURNAL STAFF REPORTERS STEVE GLAIN IN SEOUL AND JENNIFER CODY IN TOKYO SAMSUNG HEAVY INDUSTRIES CO THE SHIPBUILDING AND HEAVY MACHINERY ARM OF SOUTH KOREA'S SAMSUNG GROUP ANNOUNCED A TECHNOLOGY TIEUP WITH JAPAN'S NISSAN MOTOR CO YESTERDAY TO BUILD CARS BY EARLY 1998 THE 450BILLIONYEN 44 BILLION VENTURE WHICH SHOULD GIVE THE TWO PARTNERS RECIPROCAL ACCESS TO THEIR RESPECTIVE HOME MARKETS REQUIRES AN ENDORSEMENT BY THE ADMINISTRATION OF SOUTH KOREAN PRESIDENT KIM YOUNG SAM THE ANNOUNCEMENT RATTLED SOUTH KOREA'S FIVE AUTO MANUFACTURERS WHICH ARE COMMITTING BILLIONS OF DOLLARS TOWARD NEW CAPACITY AND REGARD A HIGHPOWERED NEWCOMER LIKE SAMSUNG AS A POTENTIAL WRECKING BALL IN A CROWDED MARKET IT FRUSTRATED ECONOMISTS AND INDUSTRY ANALYSTS WHO FEAR A NEW ENTRANT INTO THE CAR INDUSTRY WILL DESTABILIZE THE WORK FORCE AND PUSH PRODUCTION COSTS SKYWARD AND IT ANGERED OFFICIALS CLOSE TO PRESIDENT KIM WHO ARE TRYING TO ENCOURAGE KOREA'S POWERFUL CONGLOMERATES KNOWN AS CHAEBOLS TO CONSOLIDATE THEIR OPERATIONS RATHER THAN LEAP INTO NEW ONES I DON'T KNOW WHY THEY'RE DOING THIS SAID DON LEE AN ANALYST WITH BARCLAYS DE ZOETE WEDD IT'S GOING TO HURT EVERYBODY SAMSUNG A WORLDCLASS MAKER OF SEMICONDUCTOR CHIPS AND THE PERCEIVED QUALITY LEADER IN THE LOCAL CONSUMERGOODS MARKETS HAS BEEN PLANNING A THRUST INTO THE AUTO SECTOR FOR YEARS THE GROUP TRIGGERED RUMORS OF A TAKEOVER BID IN OCTOBER WHEN IT SECURED A LARGE EQUITY STAKE IN KOREA'S NO 2 AUTO MAKER KIA MOTORS CO BUT BACKED OFF WHEN KIA CONDEMNED A HOSTILE MOVE AS UNETHICAL SINCE THEN INDUSTRY ANALYSTS SAY SAMSUNG HAS BEEN MAPPING OUT A STRATEGY TO GO IT ALONE IT CONSIDERED ALLIANCES WITH VOLKSWAGEN AG OF GERMANY AND TOYOTA MOTOR CO OF JAPAN BEFORE SETTLING ON NISSAN WHICH WILL LET A RELATIVELY FRUITLESS EIGHTYEAR LICENSING AGREEMENT WITH KOREA'S DAEWOO MOTOR CO EXPIRE AT THE END OF 1994 THE AGREEMENT WILL ALLOW NISSAN TO EFFECTIVELY TRADE ITS TECHNOLOGY FOR A SHARE OF THE ROBUST KOREAN AUTO MARKET IN A NEWS RELEASE NISSAN SAID THE NEW ALLIANCE HOPES TO DEVELOP A NEW CAR FOR THE KOREAN MARKET MOST LIKELY A TWOLITERCLASS SEDAN BASED ON EXISTING NISSAN VEHICLES SAMSUNG FACES HUGE OUTLAYS FOR THE CAR VENTURE AND ALSO AN UNCERTAIN DOMESTIC MARKET ALTHOUGH DEMAND IS EXPECTED TO GROW BY 10 OVER THE NEXT DECADE EXISTING PRODUCERS HAVE EARMARKED NEARLY 10 BILLION TO DOUBLE CAPACITY BY 2001 IN ITS STATEMENT THURSDAY SAMSUNG SAID IT WOULD EXPORT MUCH OF ITS OUTPUT SOON AFTER PRODUCTION IN 1998 A FORECAST MOST ANALYSTS SAY IS UNREALISTIC SAMSUNG ALSO PROBABLY WILL CONFRONT A GRADUAL INCREASE OF FOREIGN COMPETITION AT HOME THOUGH KOREA'S AUTO MARKET IS TECHNICALLY LIBERALIZED A THICKET OF NONTARIFF BARRIERS HAS RESTRICTED IMPORTS TO ABOUT 025 OF TOTAL DOMESTIC SALES JAPANESE MODELS HAVE BEEN BLOCKED OUTRIGHT BECAUSE OF A BAN ON PRODUCTS AND CULTURE FROM THE COUNTRY THAT COLONIZED KOREA IN THE FIRST HALF OF THE CENTURY THE BAN IS SCHEDULED TO BE LIFTED BY 1997 TRADE OFFICIALS FROM THE US AND THE EUROPEAN UNION MEANWHILE HAVE INTENSIFIED PRESSURE THIS YEAR FOR THE GOVERNMENT TO FACILITATE IMPORT SALES SAMSUNG'S DECISION IS A HEADACHE FOR PRESIDENT KIM A REFORMER MR KIM HAS STAKED HIS CREDIBILITY ON A CAMPAIGN TO RESTRAIN THE CHAEBOLS FROM ENTERING NEW MARKETS BUT HE HAS ALSO PLEDGED TO UNTANGLE THE TRADITIONALLY CLOSE RELATIONSHIP BETWEEN THE SOUTH KOREAN GOVERNMENT AND BUSINESS WHICH LIMITS HIS ABILITY TO INTERVENE 9404290147 940429 INTERNATIONAL YELTSIN SOME OF HIS FOES SIGN PEACE PACT' BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW IT WAS A UNIQUELY RUSSIAN MOMENT LEADERS OF RIVAL POLITICAL GROUPS AT THE KREMLIN'S CHANDELIERED ST GEORGE'S HALL SIGNED A CIVIL PEACE PACT THAT CARRIES ABSOLUTELY NO LEGAL WEIGHT PRESIDENT BORIS YELTSIN WHOSE GRASP ON POWER HAS WEAKENED IN RECENT MONTHS IS TRYING TO WIN AUTHORITY BACK THROUGH THE CIVIC ACCORD SIGNED YESTERDAY IN A NATIONALLY TELEVISED CEREMONY BY GOVERNMENT REPRESENTATIVES PROVINCIAL LEADERS AND PROMINENT PARLIAMENTARIANS IF MR YELTSIN HAS HIS WAY THE SIGNERS WILL REFRAIN FROM DESTABILIZING POLITICAL MANEUVERING UNTIL 1996 WHEN PARLIAMENTARY AND PRESIDENTIAL ELECTIONS ARE TO BE HELD TWO YEARS OF PEACE WOULD BE A MAJOR ACHIEVEMENT THERE HAVE BEEN TWO COUP ATTEMPTS IN MOSCOW SINCE 1991 INCLUDING THE UPRISING IN OCTOBER THAT PROMPTED MR YELTSIN TO SEND IN TANKS TO BOMB HIS PARLIAMENTARY OPPONENTS INTO SUBMISSION ASIDE FROM THOSE EVENTS POLICYMAKING HAS BEEN PARALYZED BY POLITICAL BATTLES BETWEEN RUSSIA'S REFORMERS LED BY MR YELTSIN AND ITS CONSERVATIVES WHO OPPOSE RAPID CHANGE THE TREATY IS THE BEST EVIDENCE THAT COOPERATION IS NOT A FUTILE DREAM MR YELTSIN SAID AT THE CEREMONY BUT REALITY COULD STAND IN THE WAY THE DOCUMENT CARRIES NO LEGAL WEIGHT AND OPPOSITION TO MR YELTSIN AND HIS REFORMS WON'T DISAPPEAR THE FIRST TEST OF THE NEW SPIRIT OF COMPROMISE WILL COME SUNDAY MAY 1 A TRADITIONAL DAY OF PROTEST FOR PROLABOR FORCES WHO GENERALLY OPPOSE THE RUSSIAN PRESIDENT STILL NONBINDING RESOLUTIONS CARRY POLITICAL WEIGHT IN RUSSIA IN FEBRUARY 1993 MR YELTSIN WON A REFERENDUM ON HIS PRESIDENCY AND REFORM POLICIES WHILE MANY DISMISSED THE VOTE AS TOOTHLESS IT GAVE THE PRESIDENT A POLITICAL LIFT HIS VICTORY DIDN'T PREVENT OPPOSITION PARLIAMENTARIANS FROM ATTACKING HIM OF COURSE BUT WHEN THE POWER STRUGGLE CAME TO A HEAD MR YELTSIN WAS ABLE TO CALL IN THE SUPPORT OF KEY ALLIES INCLUDING IN THE MILITARY THANKS IN PART TO THE STATURE HE EARNED IN THE REFERENDUM IF SIGNATORIES STICK TO THE NEW ACCORD MR YELTSIN WILL HAVE WON ANOTHER VICTORY THE FRACTIOUS OPPOSITION HAS BEEN UNITED AROUND CALLS FOR EARLY PRESIDENTIAL ELECTIONS WHICH THE ACCORD APPEARS TO RULE OUT THIS COULD GIVE MR YELTSIN BREATHING SPACE AND ALLOW THE RUSSIAN ECONOMY TO MUDDLE FORWARD TO BE SURE MANY OF MR YELTSIN'S MOST STRIDENT FOES DIDN'T SIGN THE DOCUMENT AND THEY COULD STILL MAKE TROUBLE THE HOLDOUTS INCLUDED LEADERS OF THE COMMUNIST PARTY AS WELL AS NONELECTED FOES SUCH AS FORMER VICE PRESIDENT ALEXANDER RUTSKOI A PRESIDENTIAL HOPEFUL BUT VLADIMIR ZHIRINOVSKY LEADER OF THE LARGEST OPPOSITION FACTION IN THE STATE DUMA PARLIAMENT'S LOWER HOUSE DID SIGN WITH TYPICAL BRAVADO HE ENTERED THE ORNATE HALL HOLDING UP A BOTTLE OF ZHIRINOVSKY VODKA PRODUCED BY A RUSSIAN BOTTLER TO HONOR THE EXTREME NATIONALIST LEADER THE AMBIVALENCE OF THE AFFAIR WAS SUMMED UP BY BORIS FYODOROV FORMER FINANCE MINISTER AND LEADER OF A REFORMIST BLOC IN THE DUMA IT IS A VERY WONDERFUL DOCUMENT AND IT MIGHT AS WELL BE SIGNED MR FYODOROV SAID ON THE EVE OF THE SIGNING IT HAS MORE TO DO WITH EXHORTATIONS THAN PRACTICAL POLITICS BUT WHO KNOWS PERHAPS IT WILL PREVENT SHOOTING 9404290146 940429 WHO'S NEWS ACME METALS INC ACME METALS INC CHICAGO CAROL O'CLEIREACAIN WAS NAMED A DIRECTOR OF THIS STEELMAKER MS O'CLEIREACAIN A FORMER DIRECTOR OF NEW YORK CITY'S OFFICE OF MANAGEMENT & BUDGET WILL SERVE AS THE UNITED STEELWORKERS OF AMERICA REPRESENTATIVE ON THE BOARD ACME SAID EUGENE P BERG DIDN'T SEEK REELECTION TO THE 11MEMBER BOARD 9404290145 940429 WHO'S NEWS APACHE CORP APACHE CORP HOUSTON PRESIDENT AND CHIEF OPERATING OFFICER WILLIAM J JOHNSON HAS RESIGNED FROM THIS INDEPENDENT ENERGY COMPANY MR JOHNSON 59 YEARS OLD WILL SERVE IN A CONSULTING CAPACITY FOR AN UNDETERMINED PERIOD OF TIME APACHE'S MANAGEMENT HAS RECOMMENDED G STEVEN FARRIS 46 SENIOR VICE PRESIDENT AS A SUCCESSOR TO MR JOHNSON THE BOARD WILL ACT ON THAT RECOMMENDATION AT ITS MAY 5 MEETING 9404290144 940429 WHO'S NEWS NEWFIELD EXPLORATION CO NEWFIELD EXPLORATION CO HOUSTON CE CHUCK SCHULTZ 54 YEARS OLD WAS NAMED TO THE BOARD OF THIS OIL AND NATURAL GAS COMPANY INCREASING THE NUMBER OF MEMBERS TO EIGHT MR SCHULTZ IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GULF CANADA RESOURCES LTD OF CALGARY ALBERTA 9404290143 940429 WHO'S NEWS WESTINGHOUSE ELECTRIC CORP WESTINGHOUSE ELECTRIC CORP PITTSBURGH WILLARD C KORN AND JAMES F WATSON JR WERE NAMED VICE PRESIDENTS OF THE POWERGENERATION ELECTRONICSYSTEMS AND BROADCASTING CONCERN MR KORN 51 YEARS OLD IS PRESIDENT OF WESTINGHOUSE BROADCASTING CO THE COMPANY'S TELEVISION AND RADIO UNIT MR WATSON 56 IS PRESIDENT OF THERMO KING CORP WESTINGHOUSE'S TRANSPORTTEMPERATURECONTROL SUBSIDIARY THE VICE PRESIDENT POSTS ARE NEW POSITIONS 9404290142 940429 INLAND STEEL TO REDEEM PREFERREDSTOCK SERIES CHICAGO INLAND STEEL INDUSTRIES INC SAID IT WILL REDEEM MAY 31 ALL 15 MILLION SHARES OF ITS SERIES G 4625 CUMULATIVE CONVERTIBLE EXCHANGEABLE PREFERRED STOCK FOR 536229 A SHARE INCLUDING ACCRUED AND UNPAID DIVIDENDS OF 3854 CENTS A SHARE THE CONVERSION PRIVILEGE EXPIRES AT THE CLOSE OF BUSINESS MAY 23 THE COMPANY SAID INLAND STEEL INDUSTRIES WHICH IS A HOLDING COMPANY FOR STEEL PRODUCERS INLAND STEEL CO AND STEELSERVICE CENTER INLAND MATERIALS DISTRIBUTION GROUP INC SAID REDEEMING THE STOCK WILL RESULT IN A REDUCTION IN THE COMPANY'S ANNUAL PREFERRED STOCK DIVIDEND REQUIREMENTS OF ABOUT 7 MILLION THE REDEMPTION IS PART OF THE COMPANY'S PLAN TO REDUCE FIXED CHARGES THE COMPANY SAID HOLDERS OF THE PREFERRED STOCK HAVE FOUR OPTIONS THEY MAY CONVERT ON OR BEFORE MAY 23 THEIR PREFERRED SHARES INTO COMMON STOCK AT A RATE OF 1802 COMMON SHARES FOR EACH PREFERRED SHARE TENDER THE PREFERRED SHARES TO CS FIRST BOSTON INC AND GOLDMAN SACHS & CO FOR 5375 A SHARE BEFORE CLOSE OF BUSINESS MAY 23 SURRENDER THEIR SHARES FOR THE REDEMPTION PRICE OR SELL THE SHARES THROUGH USUAL BROKERAGE FACILITIES HARRIS TRUST & SAVINGS BANK CHICAGO IS THE REDEMPTIONANDCONVERSION AGENT 9404290141 940429 EDUCATION HOW SOME SCHOOLS GET FAT WITH FEDERAL PORK BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL PORTLAND ORE TWELVE MILLION DOLLARS FROM THE DEPARTMENT OF ENERGY DID WONDERS FOR ONE SCHOOL'S NURSING DEPARTMENT WITH THE FUNDS THE NURSING DEPARTMENT AT OREGON HEALTH SCIENCES UNIVERSITY WAS ABLE TO MOVE FROM SMALL RATINFESTED OFFICES TO A SLEEK NEW BUILDING OUTFITTED WITH SIX ROOMY FLOORS FOR RESEARCH A PLUSH AUDITORIUM AND A MODERN STUDIO FOR BROADCASTING CLASSES TO STUDENTS IN REMOTE PARTS OF THIS STATE THE NEW DIGS WHICH HELPED ATTRACT PRESTIGIOUS FACULTY AND RESEACHERS PUSHED THE UNIVERSITY INTO THE FOREFRONT OF NURSING EDUCATION AND INTO A CONTENTIOUS DEBATE ON HOW FEDERAL DOLLARS SHOULD BE DOLED OUT TO ACADEMIA THE ENERGY DEPARTMENT SPENT THE 12 MILLION TWO YEARS AGO ONLY BECAUSE OREGON'S SEN MARK HATFIELD HAD EARMARKED THE MONEY BY WRITING IT INTO AN APPROPRIATIONS BILL ADVOCATES OF EARMARKING SAY IT CAN BE A CRUCIAL WAY OF GETTING FUNDS TO LESS PRESTIGOUS INSTITUTIONS CRITICS CALL IT PORK OF THE RANKEST SORT AND FREQUENTLY TROT OUT EXAMPLES OF WASTE EARMARKING SENT 68 MILLION TO THE ALASKA AIRWAY SCIENCE PROGRAM WHICH TRAINS AIRTRAFFIC CONTROLLERS THE FEDERAL AVIATION ADMINISTRATION SAYS IT DOESN'T NEED EARMARKING BOUGHT AN 88 MILLION PLANETARIUM FOR A BAY CITY MICH COLLEGE THAT DOESN'T OFFER AN ASTRONOMY MAJOR AN INCREASE IN EARMARKING HAS ADDED TO THE HUE AND CRY LAST YEAR EARMARKS WERE A RECORD 763 MILLION COMPARED WITH LESS THAN 100 MILLION 10 YEARS AGO EARMARKING DIVERTS MONEY FROM WORTHY ACADEMIC RESEARCH SAYS NEAL LANE DIRECTOR OF THE NATIONAL SCIENCE FOUNDATION IN WASHINGTON DC IT'S A POOR INVESTMENT STRATEGY FOR THE NATION ONLY THROUGH POLITICAL FAVORITISM SOME ADVOCATES SAY CAN DISADVANTAGED UNIVERSITIES BUILD THE NEW LABORATORIES LIBRARIES AND OTHER FACILITIES THAT ATTRACT TOP RESEARCHERS OHSU EXEMPLIFIES THESE BENEFITS OF PORK THE SCHOOL WAS A RESEARCH BACKWATER IN 1978 WHEN LEONARD LASTER JOINED AS PRESIDENT HOME TO THE ONLY MEDICAL SCHOOL IN THIS SPARSELY POPULATED STATE THE UNIVERSITY WAS HEAVILY DEPENDENT ON UNRELIABLE STATE FUNDS ONE PROFESSOR INFORMED DR LASTER UPON HIS ARRIVAL THAT NO ONE GOOD COMES HERE DR LASTER A FORMER OFFICIAL OF THE NATIONAL INSTITUTES OF HEALTH SAW LITTLE CHANCE OF GAINING MORE STATE FUNDS AND HE DIDN'T EXPECT MORE FUNDING FROM GOVERNMENT SPONSORS OF MEDICAL RESEARCH WHICH SETTLE ON DESERVING RECIPIENTS BY PEER REVIEW A PROCESS WHEREBY BILLIONS IN FEDERAL GRANTS ARE AWARDED ON ACADEMIC MERIT USUALLY AFTER FORMAL COMPETITIONS CRITICS OF PEER REVIEW MAINTAIN THAT IT TOO OFTEN REWARDS ELITE UNIVERSITIES LIKE HARVARD YALE AND STANFORD WHILE LEAVING LITTLE FOR LESSERKNOWN SCHOOLS LIKE OHSU WHEN THE OLD GANG GETS TOGETHER IT'S PRETTY PREDICTABLE HOW THEY'LL DISTRIBUTE THE MONEY SAYS DANIEL GREENBERG EDITOR OF THE WASHINGTON DCBASED NEWSLETTER SCIENCE & GOVERNMENT REPORT TO BOLSTER OHSU DR LASTER SAYS HE LOOKED FOR A PATRON SAINT HE FOUND ONE IN SEN HATFIELD WHO BECAME HIS FRIEND AND ALLY HE TOOK AS HIS DREAM HELPING OHSU TAKE A LEAP INTO THE FUTURE DR LASTER SAID USUALLY RESPONDING TO SPECIFIC REQUESTS FROM OHSU SEN HATFIELD PROVED ADEPT AT WRITING INTO LAW PROVISIONS THAT DIRECT FUNDS TO THE UNIVERSITY SINCE 1980 THE SENATOR HAS EARMARKED NEARLY 90 MILLION TO OHSU AMONG THE BIGGEST AWARDS 42 MILLION FROM THE ENERGY DEPARTMENT FOR TWO BUILDINGS FOR NEUROSENSORY AND AMBULATORY RESEARCH 21 MILLION FROM THE DEPARTMENT OF HEALTH AND HUMAN SERVICES FOR A BUILDING FOR MOLECULAR BIOLOGY RESEARCH AND 87 MILLION IN FEDERAL FUNDS FOR A PANORAMIC SKYBRIDGE THAT CONNECTS OHSU'S MAIN HOSPITAL WITH A VETERANS' HOSPITAL SEN HATFIELD THROUGH A SPOKESMAN JUSTIFIES HIS FAVORITISM TOWARD OHSU ARGUING THAT THE UNIVERSITY HISTORICALLY HAD NO RELIABLE ACCESS TO FEDERAL MONEY IF WE WERE TO DO IT THROUGH PEER REVIEW OHSU WOULD NEVER GET A PENNY THE SPOKESMAN SAYS GLEAMING NEW BUILDINGS HAVE HELPED OHSU ATTRACT RESPECTED RESEARCHERS WHO ALSO HAVE A TRACK RECORD OF WINNING COMPETITIVE GRANTS CERTAINLY HAVING NEW FACILITIES ATTRACTED ME AS DID THE RESOURCES AND THE FEELING OF EXCITEMENT HERE SAYS DR MAGGIE SO A MICROBIOLOGIST WHO JOINED OHSU FROM THE PRESTIGIOUS SCRIPPS INSTITUTE APPOINTED CHAIRMAN OF THE DEPARTMENT OF MOLECULAR BIOLOGY AND IMMUNOLOGY DR SO HAS BEEN A RAINMAKER WITH GRANTS TO HER DEPARTMENT NEARLY TRIPLING SINCE HER ARRIVAL THREE YEARS AGO SHE HAS ATTRACTED 20 POSTDOCTORAL RESEARCHERS TO HER PROGRAM UP FROM ONE WHEN SHE ARRIVED POSTDOCS WHO SEEK RESEARCH ACHIEVEMENTS TO LAND FULLTIME JOBS ARE A USEFUL BAROMETER OF A UNIVERSITY'S REPUTATION THESE DAYS THE UNIVERSITY IS WINNING MORE COMPETITIVE GRANTS WITH THE VALUE OF ANNUAL AWARDS NEARLY QUADRUPLING SINCE 1984 WE'RE NOT A BRAND NAME YET BUT WE'RE IDENTIFIED AS AN UPANDCOMING RESEARCH INSTITUTION SAYS DR PETER KOHLER WHO SUCCEEDED DR LASTER AS PRESIDENT OF OHSU IN 1988 AND WHO MAINTAINS THE INSTITUTION'S RELATIONS WITH SEN HATFIELD WHILE OHSU APPEARS TO HAVE PUT ITS FEDERAL MONEY TO GOOD USE CRITICS OF RESEARCH PORK AREN'T IMPRESSED I DON'T THINK A POLICY LIKE THIS SHOULD BE JUSTIFIED ON THE FRAGMENTS OF GOOD THAT FOLLOW SAYS JOE WYATT CHANCELLOR OF VANDERBILT UNIVERSITY AND AN ARDENT FOE OF EARMARKING THE SHARP RISE IN ACADEMIC PORK NATIONWIDE HAS SPAWNED A BACKLASH LED BY CALIFORNIA REP GEORGE BROWN WHOSE RELENTLESS CRITICISMS HAVE PROMPTED A DECLINE IN RESEARCH PORK THIS YEAR EARMARKS FOR FISCAL 1994 ARE ESTIMATED AT 420 MILLION REP BROWN HAS SUGGESTED THAT RECIPIENTS OF EARMARKED FUNDS BE BANNED FROM RECEIVING ANY AWARDS FROM THE NATIONAL SCIENCE FOUNDATION THE PROPOSED BAN WOULD CALL ATTENTION TO THE REALITY THAT WE ARE ERODING A LIMITED NATIONAL RESOURCE BY ALLOWING A PORTION TO GO OFF ON THE BASIS OF POLITICAL MUSCLE RATHER THAN SCIENTIFIC MERIT SAYS CORNELIUS J PINGS PRESIDENT OF THE ASSOCIATION OF AMERICAN UNIVERSITIES WHICH COUNTS THE NATION'S TOP RESEARCH SCHOOLS AMONG ITS MEMBERS EVEN OHSU'S CONSTRUCTIVE USES OF PORK HAVE RAISED QUESTIONS OF CONFLICT OF INTEREST SEN HATFIELD'S DAUGHTER FOR INSTANCE WAS ADMITTED AS A STUDENT TO OHSU'S MEDICAL SCHOOL IN THE LATE 1980S AFTER DR KOHLER OVERRULED THE ADMISSIONS COMMITTEE SEN HATFIELD DECLINED COMMENT BUT A SPOKESMAN SAYS THE SENATOR'S DAUGHTER RECEIVED NO FAVORITISM ANOTHER PROBLEM WITH RESEARCH PORK IT CAN BE ADDICTIVE EARMARKING APPEARS TO HAVE SERVED ITS PURPOSE AT OHSU HELPING PROVIDE MANY DEPARTMENTS WITH THE ACADEMIC STATUS THEY NEEDED TO ATTRACT MORE PEERREVIEWED GRANTS BUT NOW SEN HATFIELD AND DR KOHLER DISMISS CALLS FOR THEM TO ESCHEW RESEARCH PORK IN THE FUTURE I'M NOT GOING TO TURN DOWN ANYTHING SAYS DR KOHLER 9404290140 940429 CULTURAL MISMATCH CALIFORNIANS FLOOD IN AND TENSION IS RISING IN SMALL TOWNS IN UTAH LOCALS DECRY RISING CRIME NEWCOMERS THE BOREDOM AND THE HOMOGENEITY PULLING THE PLUG ON MTV BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL ST GEORGE UTAH SPRAWLED ACROSS LEATHER COUCHES IN THEIR FAUXADOBE HOME THE DEVIVOS MULL THEIR MOVE FROM SOUTHERN CALIFORNIA TO THIS MORMON TOWN OF 35000 FRANKIE DEVIVO LOVES THE REDROCK CLIFFS BUT MISSES CITY SHOPS HER HUSBAND JOHN WONDERS WHAT TO DO NOW THAT HE HAS SOLD MOST OF HIS BUSINESS IN CALIFORNIA AND THEIR TEENAGE SON FINDS HIS CLASSMATES SQUARE HE MISSES THE ACTION BACK AT RIVERSIDE HIGH FOR OCCASIONAL THRILLS THE DEVIVOS DRIVE TO NEARBY MESQUITE NEV WITH ITS CASINOS AND CROWDS THEY ALSO WELCOME THE INFLUX HERE OF OTHER WEST COAST MIGRANTS INCLUDING A HOMOSEXUAL COUPLE WHO PLAN TO OPEN AN ESPRESSO BAR AND BOOKSHOP TWO GAYS FROM SEATTLE THAT'S JUST WHAT THIS TOWN NEEDS SAYS MR DEVIVO NEPHI EVENSON COULDN'T AGREE LESS HE TOO VISITS MESQUITE TO PICKET A PORNOGRAPHY SHOP WITH OTHER UTAH MORMONS AS TO HOMOSEXUALS COMING HERE HE SAYS IT'S TERRIFYING AND HE HAS LAUNCHED A CAMPAIGN TO SLOW THE FLOOD OF MOVEINS MOSTLY CALIFORNIANS WHO ARE TRANSFORMING THIS ONCERURAL TOWN WE'RE A MISSIONARY CHURCH WE WELCOME STRANGERS SAYS THE RETIRED CORPORATE COMPTROLLER OFFERING A VISITOR A COPY OF THE BOOK OF MORMON BUT THE WAY OF LIFE THAT BRINGS PEOPLE HERE WILL BE LOST IF TOO MANY MORE COME IN SUCH DISCOURAGING WORDS CAN BE HEARD ALL ACROSS THE RANGE AS CALIFORNIANS HEAD EAST IN UNPRECEDENTED NUMBERS OFTEN FOR THE OPEN SPACES OF THE MOUNTAIN WEST LOCALS WELCOME THE BOOST TO THEIR ECONOMY BUT DECRY THE SCOURGES THAT ACCOMPANY RAPID GROWTH ST GEORGE FOR EXAMPLE NOW IS BATTLING CONGESTION THE ARRIVAL OF URBAN GANGS AND A NEARDOUBLING OF ITS CRIME RATE SINCE 1990 IN A PLACE WHERE RESIDENTS WERE LONG ACCUSTOMED TO LEAVING DOORS UNLOCKED NEWCOMERS IN TURN FIND THAT THE QUIET LIFE COMES AT A PRICE LOW WAGES FEW URBAN AMENITIES AND AN ATMOSPHERE THAT CAN SEEM STIFLING THE TWO GROUPS ALSO SPAR OVER SOCIAL ISSUES SUCH AS LIQUOR LICENSING THE ENVIRONMENT AND THE TREATMENT OF ANIMALS AT RODEOS PEOPLE DON'T LIKE IT WHERE THEY ARE GRIPES FARRELL HALL A RANCHER SO THEY COME HERE AND TRY TO MAKE IT JUST LIKE THE PLACE THEY LEFT PROBABLY NOWHERE ARE THESE EMERGING TENSIONS MORE OBVIOUS THAN IN WASHINGTON COUNTY IN UTAH'S SOUTHWEST IN 1861 MORMON PIONEERS SETTLED THIS SEMIARID AREA TO GROW COTTON AND GET AWAY FROM THE WORLD NOW THE WORLD IS COMING TO THEM THE COUNTY'S POPULATION GREW 86 IN THE 1980S AND IS STILL SOARING TRACT HOUSING CROWNS ONCEBALD MESAS TRAILER PARKS AND STRIP MALLS SPILL ACROSS HILLS AND VALLEYS THE FORMER WAGON TRAIL THROUGH ST GEORGE THE COUNTY SEAT AND ONCE BRIGHAM YOUNG'S WINTER HOME HAS BECOME A FIVELANE STRIP OF FASTFOOD JOINTS AND CHEAP MOTELS MANY OF THEM FULL OF CALIFORNIANS WHO CAN'T FIND OR AFFORD OTHER HOUSING WHEN YOU DRIVE THROUGH THE DESERT FROM LA THIS PLACE JUST MAKES YOU WANT TO STOP AND SETTLE DOWN SAYS MR DEVIVO WHO LIKE MANY NEWCOMERS SCOUTED SOUTHERN UTAH ON VACATION AND WAS DRAWN BACK BY ITS MILD CLIMATE SANDSTONE CANYONS AND SMALLTOWN AMBIENCE IN ADDITION THE DEVIVOS AND MANY OTHERS MOVED EAST BECAUSE OF CALIFORNIA'S CRIME CONGESTION WEAK ECONOMY AND TO A LESSER DEGREE EARTHQUAKES DEMOGRAPHERS ALSO SEE SIGNS THAT THE MOVEMENT FROM THE COAST'S RACIALLY DIVERSE CITIES TO HOMOGENEOUS STATES SUCH AS MONTANA IDAHO AND UTAH REPRESENTS A NEW WAVE OF WHITE FLIGHT A TREND THAT BECOMES STARKLY OBVIOUS IN TALKING TO DOZENS OF CALIFORNIANS HERE MINORITIES ARE ALWAYS IN YOUR FACE ALWAYS HASSLING YOU SAYS MR DEVIVO WHO SOLD HIS FAMILY'S HOME AND THREE OF ITS FOUR VIDEO SHOPS IN AND AROUND RIVERSIDE CALIF SOON AFTER THE LOS ANGELES RIOTS IN UTAH HE ADDS PEOPLE SPEAK ENGLISH AND SAY THANK YOU' MRS DEVIVO IS EVEN BLUNTER WE WANT TO BE SEALED OFF FROM THE BLACKS THE HISPANICS THE VIETNAMESE THAT'S A BIG REASON I CAME BUT TO THEIR 15YEAROLD SON JOHNNY THE CHANGE IS JARRING IN RIVERSIDE MOST OF HIS CLASSMATES WERE BLACK OR HISPANIC ST GEORGE IS SO WHITE THAT A FEW YEARS AGO A WOMAN PHONED THE POLICE TO REPORT SEEING A BLACK MAN ON MAIN STREET I MISS THE REGGAE THE RAP THE RANGE OF PEOPLE JOHNNY SAYS FISHING FOR BASS AFTER SCHOOL RECENTLY HE QUICKLY BEFRIENDED A LONE LATINO WITH A BOOM BOX JOHNNY ALSO FEELS AWKWARD ABOUT THE AFFLUENCE THAT HIS FAMILY AND SOME OTHERS BRING TO THIS MODEST FARMING AREA KIDS FROM SCHOOL SAY JOHNNY'S DAD MUST BE A BAZILLIONAIRE' HE SAYS ROAMING THROUGH HIS PARENTS' 400000 HOME IN FACT ALTHOUGH MANY OF THE CALIFORNIANS COMING HERE ARE SELFEMPLOYED OR LIVING LARGELY ON SAVINGS A LOT OF OTHERS ARE STRUGGLING YOUNG FAMILIES SEEKING A FRESH START RETIREES WHO HAVE BEEN MOVING HERE FOR YEARS FORM A THIRD BROAD STREAM SOME CALIFORNIANS ARE MORMONS RETURNING TO UTAH AND MANY OTHERS ARE CONSERVATIVES ATTRACTED BY ITS TRADITIONAL WAYS BUT AS A GROUP TRANSPLANTS TEND TO BE MORE URBAN AFFLUENT AND ATTUNED TO SOCIAL AND POLITICAL TRENDS THAN LONGTIME RESIDENTS ALL OF WHICH CAN STIR UP TENSION YOUNG UTAHANS ESPECIALLY AREN'T SURE WHAT TO MAKE OF THE NEWCOMERS MANY OF WHOM SPORT BAGGY JEANS EARRINGS AND UNFAMILIAR ATTITUDES THEY'RE RUDE IN CLASS AND RIP ON US FOR BEING GOODYGOODIES SAYS 16YEAROLD JOLENE WADSWORTH IN HURRICANE A TOWN NEAR ST GEORGE JOLENE'S LIFE REVOLVES AROUND CHURCH AND HOME THE MUSIC BOOK IN HER FAMILY'S DEN IS OPEN TO A SONG SHE'S PRACTICING IT'S CALLED INTEGRITY AND SHE NODS AS HER MOTHER LAYS OUT THE RULES OF THIS AND MANY MORMON HOUSEHOLDS NO COFFEE NO TOBACCO NO ALCOHOL NO DRUGS NO DATING UNTIL YOU'RE 16 AND NO SEX UNTIL YOU'RE MARRIED BUT SUCH STRICTURES MAKE CALIFORNIANS MORE ALLURING TO SOME REBELLIOUS YOUNG MORMONS ON MONDAY NIGHT IN HURRICANE AS MOST HOUSEHOLDS GATHER FOR FAMILY HOME EVENING MATT AND CRAIG COX CHOOSE INSTEAD TO SHIVER OUTSIDE A LOCAL CONVENIENCE STORE THAT HAS BECOME A HANGOUT FOR NEWCOMERS OUR MOM ALWAYS TELLS US TO STAY AWAY FROM THESE BAD CALIFORNIANS SAYS 15YEAROLD MATT WHO WEARS A BACKWARD BASEBALL CAP AND KNEELENGTH SHORTS HE LAUGHS THEY ARE BAD THAT'S WHY WE LIKE THEM SUCH ADULATION AS WELL AS THE TRANSIENCE AND ALIENATION OF MANY YOUNG MIGRANTS CAN BE FERTILE GROUND FOR TROUBLE AT DIXIE HIGH SCHOOL IN ST GEORGE THERE WERE 240 NEW FACES AMONG THE 1160 STUDENTS LAST FALL AND THE SCHOOL IS HOLDING CLASSES IN THE CAFETERIA THE ELEMENTARY SCHOOLS NOW RUN YEARROUND WE'RE DEALING WITH THINGS WE'VE NEVER SEEN BEFORE SAYS CRAIG HAMMER DIXIE'S VICE PRINCIPAL PULLING FROM HIS DRAWER A SNAPSHOT OF A KNIFE TAKEN FROM A STUDENT IN FEBRUARY IT WAS THE FIRST WEAPONS SEIZURE EVER AT THE SCHOOL WHICH ALSO HAS SEEN DRUG USE RISE AND THE PREGNANCY RATE QUADRUPLE IN JUST THE PAST YEAR THE SCHOOL HAS RECENTLY CONFISCATED PAGERS AND TSHIRTS ADORNED WITH PHRASES SUCH AS COP KILLER AND GRAFFITI HAVE BEGUN SPROUTING ACROSS TOWN TAGGING THE TURF OF GANGS CALLED PURPLE POSSE AND DIXIE DOWN CRIPS THAT POLICE SAY HAVE BEEN SPAWNED BY NEWCOMERS MAINLY FROM LA PARENTS WITH TROUBLED KIDS MOVE HERE BECAUSE THEY THINK IT WILL STRAIGHTEN THEM OUT BUT OFTEN THE KIDS JUST BRING THE TROUBLE WITH THEM SAYS POLICE SERGEANT STEVE DESPAIN WHO ADDS WE HAVEN'T HAD A DRIVEBY YET BUT IT'S ONLY A MATTER OF TIME ALTHOUGH ST GEORGE REMAINS TAME BY URBAN STANDARDS ITS RISING CRIME RATE HAS LED FOR THE FIRST TIME TO GATED COMMUNITIES ANOTHER NEW SIGHT HOMELESS PEOPLE FORAGING THROUGH DUMPSTERS AND CAMPING IN CARDBOARD SHANTIES TO SOME DEGREE THESE AND OTHER PROBLEMS SUCH AS STRAINED WATER AND POWER SUPPLIES ARE COMMON TO ALL AREAS COPING WITH SUDDEN SPRAWL AND RESIDENTS STILL RATE THE QUALITY OF LIFE HERE VERY HIGH BUT IN AN AREA THAT REMAINS MOSTLY MORMON AND DEEPLY CONSERVATIVE THERE ARE GROWING SIGNS OF A BACKLASH AT DIXIE HIGH MR HAMMER SAYS MANY PARENTS ARE PULLING OUT THEIR CHILDREN IN FAVOR OF HOME SCHOOLING SEVERAL PROMINENT RESIDENTS HAVE SPEARHEADED A CAMPAIGN TO LIMIT ST GEORGE'S GROWTH TO 3 A YEAR A SIMILAR MOVE IS AFOOT IN HURRICANE WHERE THE OUTGOING MAYOR GOT THE LOCAL CABLE COMPANY TO PULL THE PLUG ON MTV BECAUSE HE SAYS ITS MORALS ARE TOO LOW LOCALS ALSO COMPLAIN THAT THE NEWCOMERS USUALLY CALLED MOVEINS OR IMPORTS ARE DRIVING UP RENTS AND HOME PRICES SO HIGH THAT YOUNG HOMETOWNERS CAN'T AFFORD TO STAY IN AN AREA THAT OFFERS LITTLE WORK BESIDES LOWWAGE SERVICE JOBS IRONICALLY MANY SUCH LOCALS HEAD WEST TO LAS VEGAS OR LOS ANGELES THE MOVEINS DRIVE NICER CARS THAN US HAVE NICER HOMES AND CROWD US OUT SAYS COLETTE WADSWORTH WHOSE NEWLYWED DAUGHTER HAS PARKED A TRAILER ON HER PARENTS' FARM FOR LACK OF OTHER HOUSING THAT SHE CAN AFFORD LIKE OTHER FARMERS THE WADSWORTHS COMPLAIN THAT URBANITES LEAVE STOCK GATES OPEN GRIPE ABOUT BARNYARD SMELLS AND SOUNDS AND THREATEN LAWSUITS OVER IRRIGATION RUNOFF SUCH CONFLICTS EVEN SPLIT COMMUNITIES DIVIDING NATIVES WHO FAVOR GROWTH AND PROFIT FROM IT AND THOSE WHO WANT OLD WAYS RESTORED BETWEEN CUSTOMERS AT TOM'S CLIP JOINT IN HURRICANE TOM HIRSCHI A 50YEAROLD BARBER FLIPS THROUGH A RUSH LIMBAUGH NEWSLETTER AND SHAKES HIS HEAD AT CHANGES IN HIS TOWN IN HIS CHILDHOOD ITS ELEVATION 3266 FEET WAS DOUBLE ITS POPULATION NOW IT'S HALF AS MUCH A MOVEIN WAS RECENTLY ELECTED MAYOR AND A HIPPIERUN CAFE NEARBY ADVERTISES THE BEST CAPPUCCINO IN HURRICANE EVEN THOUGH MORMONS DISDAIN CAFFEINE THE GAP IS LIKELY TO CLOSE STILL FURTHER WITH THE CONTINUING INFLUX OF CALIFORNIANS MANY OF WHOM ARE ACCUSTOMED TO POLITICAL ACTIVISM AND OPEN GOVERNMENT NOW ONCESLEEPY CITY COUNCIL MEETINGS ARE PACKED WITH VOCAL CITIZENS DEBATING ZONING LAWS AND OTHER ISSUES CALIFORNIANS ARE MUCH MORE DEMANDING SAYS GARY ESPLIN ST GEORGE'S VETERAN TOWN MANAGER THEY'RE USED TO CITY TAXES AND SERVICES AND EXPECT THE SAME LEVEL HERE THEY ALSO ARE USED TO URBAN SHOPS AND ETHNIC RESTAURANTS AND COMPLAIN ABOUT THEIR SCARCITY MANY IN FACT BUY THEIR CLOTHES ON TRIPS BACK TO CALIFORNIA THEY BRISTLE AS WELL AT UTAH'S SUNDAY CLOSINGS AND STRICT LIQUOR LAWS WHICH CONFINE DRINKING TO A HANDFUL OF ESTABLISHMENTS FOR LOWERINCOME TRANSPLANTS LIFESTYLE IS LESS OF AN ISSUE THAN INCOME AND HOUSING WHILE JOBS ARE PLENTIFUL PARTICULARLY IN CONSTRUCTION WAGES ARE LOW AND UNIONS ALMOST NONEXISTENT MANY NEWCOMERS WORK AT HALF THEIR CALIFORNIA PAY DAVE RICHARDSON A 41YEAROLD DRYWALL FINISHER SAYS LAYOFFS DROVE HIM FROM A 50000AYEAR INCOME IN THE LATE 1980S TO NEARPENURY IN CALIFORNIA LAST YEAR NOW HE WORKS SEVEN DAYS A WEEK WHILE HIS WIFE AWAITS FORECLOSURE ON THEIR CALIFORNIA HOUSE FROM HIS MOTEL ROOM ST GEORGE LOOKS TO HIM LIKE A SAD DUMPING GROUND FOR PEOPLE WHO LOST THE AMERICAN DREAM MY DAD ALWAYS TALKED ABOUT THE DEPRESSION AND HOW HE RODE THE FREIGHT TRAINS LOOKING FOR WORK HE SAYS EATING CRACKERS AND CANNED SOUP NOW THOUSANDS OF US ARE DOING THE SAME THING EXCEPT THAT WE'RE RIDING AROUND IN OLD TRUCKS WE BOUGHT ON CREDITWHEN WE STILL HAD CREDIT TRANSPLANTS WITH SIMILAR TALES FILL ST GEORGE'S MOTELS AND TRAILER PARKS CROWDING TRANSIENCE AND FINANCIAL STRAIN HAVE CONTRIBUTED TO A STARTLING 177 RISE IN SPOUSEABUSE CASES HERE OVER THE PAST YEAR POLICE AND SOCIAL WORKERS SAY THOSE WHO PUT DOWN DEEPER ROOTS ALSO FIND A DARK SIDE TO UTAH'S TIGHTKNIT SOCIETY SHANNON HARDESTY LIKE MANY NEWCOMERS SAYS HER MONTHSLONG SEARCH FOR HOUSING ALWAYS BEGAN WITH THE SAME QUESTION FROM HOMEOWNERS ARE YOU LDS SHORTHAND FOR THE CHURCH OF JESUS CHRIST OF LATTERDAY SAINTS THE MORMON CHURCH'S FORMAL NAME NOW THAT SHE HAS FOUND A HOME ONLY ONE NEIGHBOR A LAPSED MORMON HAS WELCOMED HER IT'S BEEN REAL LONELY SAYS MS HARDESTY WHO SPENDS HER DAYS WITH HER THREE YOUNG CHILDREN WHILE HER HUSBAND WORKS IN CONSTRUCTION THE FAMILY CAN'T YET AFFORD FURNITURE SO MS HARDESTY SITS ON THE FLOOR OF A BARE LIVING ROOM HER DAUGHTERS HAVE SLEEPING BAGS RATHER THAN BEDS I DON'T WANT MY KIDS GROWING UP IN A COMMUNITY WHERE THEY MAY FEEL BAD BECAUSE THEY'RE NOT MORMON SHE SAYS SHE ADDS THAT MANY CALIFORNIANS MAY CHOOSE TO RIDE OUT THE LOCAL BOOM THEN PACK OUR BAGS AND HEAD HOME THAT WOULD SUIT PHYLLIS COOPER JUST FINE EVERY TIME THE EARTH OR ECONOMY SHUDDERS IN CALIFORNIA THE PHONE RINGS NONSTOP AT HER DESK AT THE ST GEORGE NEWSPAPER WHERE SHE SELLS ADS MANY OF THE CALIFORNIANS WHO CALL TO PLACE ADS FOR ODD JOBS OR HOUSING HAVEN'T EVEN BEEN TO UTAH SHE SAYS MS COOPER NOW PLANS TO MOVE 30 MILES FROM ST GEORGE WHERE MY KIDS CAN STILL RUN FREE SHE SAYS AND WHEN THE RECENT EARTHQUAKE HIT LA SHE FELT A DEVILISH URGE TO GIVE CALLERS SOME LOCAL NEWS ST GEORGE HAS AN EARTHQUAKE FAULT TOO AND A TREMOR LAST FALL MEASURED OVER 5 ON THE RICHTER SCALE MAYBE THAT WOULD KEEP THEM AWAY SHE SAYS 9404290139 940429 WHO'S NEWS ASYST TECHNOLOGIES INC ASYST TECHNOLOGIES INC MILPITAS CALIF BRUCE RHINE FORMERLY VICE PRESIDENT OF LAW RESEARCH CORP WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF SEMICONDUCTOR MANUFACTURING EQUIPMENT HE SUCCEEDS ROBERT HOLZEL WHO WILL SERVE AS ASYST'S VICE CHAIRMAN AND A CONSULTANT TO THE COMPANY IN ADDITION ROBERT GRAHAM CHAIRMAN OF NOVELLUS SYSTEMS INC WAS NAMED TO ASYST'S BOARD SUCCEEDING DUBOSE MONTGOMERY WHO RESIGNED BRUCE RHINE PRESIDENT AND CHIEF OPERATING OFFICER OF ASYST TECHNOLOGIES INC WAS FORMERLY VICE PRESIDENT OF LAM RESEARCH CORP THE NAME OF MR RHINE'S FORMER EMPLOYER WAS GIVEN INCORRECTLY IN FRIDAY'S WHO'S NEWS COLUMN 9404290138 940429 WHO'S NEWS WALT DISNEY TAPS HOBERMAN TO LEAD MOVIE SUBSIDIARY BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL BURBANK CALIF IN A MOVE THAT ACCOMPANIES A CHANGE IN STRATEGY WALT DISNEY CO NAMED DAVID HOBERMAN TO THE NEWLY CREATED POSITION OF PRESIDENT OF MOTION PICTURES FOR ITS WALT DISNEY STUDIOS UNIT THE SHIFT GIVES MR HOBERMAN WHO HAD BEEN IN CHARGE OF THE COMPANY'S TOUCHSTONE PICTURES AND WALT DISNEY PICTURES LABELS AUTHORITY OVER ITS HOLLYWOOD PICTURES LABEL AS WELL THE MOVE HAD BEEN EXPECTED SINCE RICARDO MESTRES THE PRESIDENT OF HOLLYWOOD PICTURES AGREED TO STEP DOWN EARLIER THIS WEEK MR HOBERMAN IN AN INTERVIEW SAID THAT DISNEY NOW PLANS TO VIOLATE ONE OF ITS HALLOWED MOVIEMAKING CREDOS WHICH WAS TO MAINTAIN A STRATEGY OF MAKING MEDIUMBUDGET HIGHCONCEPT IDEAS SUMMED UP IN A SENTENCE MOVIES TIGHTLY MANAGED BY ITS EXECUTIVES THE MIDDLE AREA IS A DIFFICULT AREA TO PLAY IN HE SAID HOLLYWOOD PICTURES NEEDS A PERCEPTIBLE CHANGE IN ORIENTATION INSTEAD MR HOBERMAN SAID THE STUDIO WANTS TO ATTRACT MORE HIGHPRICED FILMMAKERS AND STARS AND THEN GIVE THEM RELATIVE FREEDOM HE SAID THE PROCESS HAD ALREADY BEGUN CITING THIS SUMMER'S COMING RENAISSANCE MAN DIRECTED BY PENNY MARSHALL AWAKENINGS A LEAGUE OF THEIR OWN AND STARRING DANNY DEVITO DISNEY ALONG WITH TIME WARNER INC'S FILM UNIT THE TOP MOVIE STUDIOS YEAR AFTER YEAR TENDS TO CONDUCT PUBLIC EXPIATIONS WHEN IT HITS A COLD STREAK AT THE BOX OFFICE AND THIS IS THE LATEST PERHAPS AT MR MESTRES'S EXPENSE WHEN DISNEY'S DICK TRACY UNDERPERFORMED IN 1990 IT HELPED GENERATE THE NOWLEGENDARY KATZENBERG MANIFESTO A MEMO BY STUDIO CHIEF JEFFREY KATZENBERG THAT SWORE OFF BIGBUDGET PICTURES WITH POWERFUL STARS OR DIRECTORS AND REDEDICATED THE STUDIO TO ITS STRATEGY OF HIRING INEXPENSIVE DIRECTORS AND ACTORS AND CLOSELY OVERSEEING THEIR PROJECTS THIS THEORY CAN WORK WELL BECAUSE IT ENSURES AGAINST DISASTROUS BOMBS BUILDS UP DISNEY'S COMPARATIVELY SMALL LIVEACTION FILM LIBRARY AND CAN PRODUCE HIGHLY PROFITABLE BLOCKBUSTERS LIKE PRETTY WOMAN AND SISTER ACT BUT IT CAN ALSO PRODUCE A STRING OF FORGETTABLE LOSERS OF WHICH DISNEY HAS HAD ITS SHARE OF LATE MR HOBERMAN SAID THAT IT WAS IMPORTANT FOR DISNEY TO HARNESS INDIVIDUAL PASSION WHICH MEANS CEDING MORE CONTROL TO FILMMAKERS HE ADDED THAT DISNEY WOULD CONTINUE TO MAKE THE KIND OF MOVIES IT'S KNOWN FOR BUT THAT QUANTITY AND THE STUDIO NOW RELEASES 60 PICTURES A YEAR INCLUDING ITS MIRAMAX UNIT SHOULDN'T SACRIFICE QUALITY MR HOBERMAN SAYS HE PLANS TO NAME A PRODUCTION CHIEF FOR HOLLYWOOD PICTURES WITHIN THE NEXT FEW WEEKS THREE MAJOR SOURCES OF FILMS FOR DISNEY ITS FEATURE ANIMATION DEPARTMENT CARAVAN PICTURES AND MIRAMAX WILL CONTINUE TO REPORT DIRECTLY TO MR KATZENBERG IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE DISNEY SHARES CLOSED AT 42375 DOWN 1125 AMID A GENERAL STOCKMARKET DECLINE 9404290137 940429 WHO'S NEWS AMGEN INC AMGEN INC THOUSAND OAKS CALIF ROBERT S ATTIYEH 59 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT FINANCE AND CORPORATE DEVELOPMENT OF THIS BIOTECHNOLOGY COMPANY ON JULY 1 HE WILL ASSUME THE DUTIES OF CHIEF FINANCIAL OFFICER SUCCEEDING LOWELL E SEARS MR SEARS 43 WHO ALSO WAS SENIOR VICE PRESIDENT OF ASIAPACIFIC OPERATIONS RECENTLY RESIGNED MR ATTIYEH A SENIOR PARTNER WITH THE CONSULTING FIRM OF MCKINSEY & CO HAS WORKED WITH AMGEN AS A CONSULTANT FOR SEVERAL YEARS 9404290136 940429 WHO'S NEWS CASCADE NATURAL GAS CORP CASCADE NATURAL GAS CORP SEATTLE W BRIAN MATSUYAMA 47 YEARS OLD PRESIDENT OF THIS GAS DISTRIBUTION UTILITY WAS NAMED TO SUCCEED MELVIN C CLAPP AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER WHEN MR CLAPP 60 RETIRES FEB 1 1995 RALPH E BOYD 57 VICE PRESIDENT AND CHIEF OPERATING OFFICER WILL BECOME CASCADE'S PRESIDENT AND LARRY ANDERSON 46 DIRECTOR OF ENGINEERING WILL SUCCEED MR BOYD AS VICE PRESIDENT OF OPERATIONS 9404290135 940429 WHO'S NEWS BAYBANKS INC BAYBANKS INC BOSTON ROBERT L GABLE WAS ELECTED A DIRECTOR INCREASING BOARD MEMBERSHIP TO 12 MR GABLE 63 YEARS OLD IS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF UNITRODE CORP BILLERICA MASS BAYBANKS IS A BANK HOLDING COMPANY 9404290134 940429 TECHNOLOGY & HEALTH NYNEX FINES AND REASSIGNS EXECUTIVES WHO GOT DRAFT OF OUTSIDE ETHICS REPORT BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AN INDEPENDENT AUDIT TO ASSESS THE DAMAGE OF EARLIER ETHICS BREACHES BY NYNEX CORP HAS LED TO A NEW ETHICAL SNAFU AT THE COMPANY NYNEX SAID THAT SIX EMPLOYEES WHO OBTAINED A COPY OF A PRELIMINARY OUTSIDE ETHICS AUDIT REPORT HAVE BEEN FINED AND REASSIGNED THE EMPLOYEES INCLUDE A SENIOR ATTORNEY AND AN OFFICIAL IN CHARGE OF REGULATORY MATTERS NYNEX SAID THE MOVE FOLLOWED AN INTERNAL PROBE THAT DETERMINED THAT THE EMPLOYEES PREMATURELY SAW A PORTION OF A DRAFT OF AN OUTSIDER AUDITOR'S REPORT ON OVERCHARGES THE REPORT WAS BEING PREPARED BY LIBERTY CONSULTING GROUP AT THE BEHEST OF THE PUBLIC SERVICE COMMISSION OF NEW YORK NYNEX SAID THAT THE EMPLOYEES WILL HAVE NO FUTURE DEALINGS WITH STATE REGULATORS NYNEX DECLINED TO SAY HOW THE EMPLOYEES GOT THE DRAFT OR HOW LARGE THE FINANCIAL PENALTIES WERE IT WOULDN'T IDENTIFY THE NAMES OR POSITIONS OF THE PEOPLE INVOLVED BUT PEOPLE FAMILIAR WITH THE SITUATION SAID THAT THOSE REASSIGNED INCLUDE JOHN CLARKE WHO WAS GENERAL COUNSEL FOR NEW YORK TELEPHONE CO THE TELEPHONE UNIT OF NYNEX AND BAILEY GEESLIN WHO WAS NYNEX'S REGULATORY CHIEF MR CLARKE IS NOW OVERSEEING CORPORATEWIDE GOVERNANCE MATTERS MR GEESLIN IS NOW HEADING PUBLIC POLICY PLANNING OFFICIALS FORMERLY REPORTING TO HIM NOW REPORT TO RICHARD JALKUT PRESIDENT OF NYNEX'S NEW YORK TELEPHONE UNIT ACCORDING TO A NYNEX EMPLOYEE NEWSLETTER NEITHER MAN COULD BE REACHED FOR COMMENT MR JALKUT DECLINED TO BE INTERVIEWED AND NYNEX DECLINED TO COMMENT BEYOND A WRITTEN STATEMENT STATE REGULATORS HAD ASKED FOR AN OUTSIDE APPRAISAL OF THE FINANCIAL DAMAGES TO CUSTOMERS THAT STEMMED FROM A NYNEX SERVICES UNIT OVERCHARGING NYNEX PHONE UNITS BY A TOTAL OF 120 MILLION NYNEX HAS BEEN ORDERED TO SET ASIDE MILLIONS OF DOLLARS FOR POSSIBLE REPAYMENT TO CUSTOMERS AT THE SAME TIME NYNEX WAS TARNISHED BY REVELATIONS THAT IT THREW WILD PARTIES FOR ITS VENDORS THAT INCLUDED PROSTITUTES THE LATEST FLAP AROSE WHEN A LIBERTY CONSULTING AUDITOR WORKING ON THE OUTSIDE APPRAISAL DISCOVERED THAT A NYNEX EMPLOYEE HAD CONFIDENTIAL WORK PAPERS SUCH INFORMATION WOULD GIVE NYNEX CLUES ON WAYS TO PREPARE RESPONSES TO EXPECTED STATE REGULATORY INQUIRIES LIBERTY CONSULTING FIRST BECAME AWARE THAT IT MIGHT HAVE A SECURITY BREACH ON ITS HANDS LAST JULY WHEN AN AUDITOR HAPPENED TO NOTICE THAT A DOCUMENT TEMPORARILY LAID ON HIS DESK BY A NYNEX EMPLOYEE WAS A CONFIDENTIAL CHART PREPARED BY THE AUDITOR LIBERTY CONSULTING SUBSEQUENTLY NOTIFIED THE PSC WHICH ASKED NYNEX TO INVESTIGATE THE INCIDENT IT HAS SINCE BEEN DETERMINED THAT THE SECURITY BREACH OCCURRED AS EARLY AS FEBRUARY AND CONTINUED UNTIL IT WAS DISCOVERED IN JULY ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION THERE IS SOME INDICATION THAT CONFIDENTIAL LIBERTY DOCUMENTS WERE OBTAINED BY NYNEX EMPLOYEES ON MORE THAN ONE OCCASION AND IN A MANNER THAT WAS CONSIDERED DELIBERATE AS OPPOSED TO PURELY ACCIDENTAL LIBERTY CONSULTING HAD AN UNDERSTANDING WITH NYNEX THAT NYNEX EMPLOYEES WOULDN'T ENTER ITS OFFICE EXCEPT TO MAKE DELIVERIES OR FOR OTHER ADMINISTRATIVE NEEDS NYNEX DECLINED TO RELEASE ITS INTERNAL REPORT THAT EXPLORED THE LATEST ETHICS FOULUP BUT THE COMPANY SAID ITS PROBE NOW ALSO BEING INVESTIGATED BY LIBERTY FOUND NO EVIDENCE AND THERE IS NO REASON TO BELIEVE THAT THE INDEPENDENT AUDIT WAS COMPROMISED IN ANY WAY AMONG THOSE WANTING A LOOK AT THE NYNEX'S INTERNAL REPORT IS G OLIVER KOPPELL NEW YORK'S ATTORNEY GENERAL WHOSE OFFICE HAS BEEN WAITING FOR MONTHS FOR A BRIEFING ON THE FLAP HIS OFFICE YESTERDAY TOOK THE UNUSUAL STEP OF ASKING THE PSC TO ISSUE A SUBPOENA FOR THE REPORT ALONG WITH ALL WITNESS STATEMENTS INTERVIEW NOTES BUSINESS RECORDS AND OTHER DOCUMENTATION BY NEXT FRIDAY THE NEW AUDIT MESS COMES AT A PARTICULARLY BAD TIME FOR THE CONTROVERSYSCARRED BABY BELL WHICH IS TRYING TO WIN CONCESSIONS FROM STATE REGULATORS FOR A MORE RELAXED FORM OF REGULATION THAT NYNEX DEEMS CRITICAL TO ITS FINANCIAL SUCCESS NYNEX IS THE ONLY BABY BELL WITH A CRIMINAL CONVICTION FOR VIOLATING THE CONSENT DECREE THAT BROKE UP THE BELL SYSTEM IN 1984 ITS LATEST TRANSGRESSION ISN'T LIKELY TO PLAY WELL IN WASHINGTON WHERE THE COMPANY IS WORKING WITH OTHER BABY BELLS TO PUSH FOR LEGISLATION THAT WOULD GIVE IT MORE FREEDOM TO ENTER NEW BUSINESSES AND EASE REGULATORY BURDENS NYNEX CORP'S CRIMINAL CONVICTION FOR VIOLATING THE CONSENT DECREE THAT BROKE UP THE BELL SYSTEM WAS OVERTURNED BY A FEDERAL APPEALS COURT IN NOVEMBER 1993 AN ARTICLE FRIDAY MENTIONED THE CONVICTION BUT FAILED TO NOTE THAT IT HAD BEEN OVERTURNED 9404290133 940429 WHO'S NEWS AMERICAN HERITAGE LIFE INVESTMENT CORP AMERICAN HERITAGE LIFE INVESTMENT CORP JACKSONVILLE FLA T O'NEAL DOUGLAS 58 YEARS OLD IS ASSUMING THE TITLE OF CHAIRMAN OF THIS INSURANCE HOLDING COMPANY AND ITS LIFE INSURANCE SUBSIDIARY SUCCEEDING W ASHLEY VERLANDER 74 WHO IS RETIRING MR DOUGLAS RETAINS THE POSITIONS OF CHIEF EXECUTIVE OF BOTH COMPANIES AND PRESIDENT OF THE CORPORATION IN ADDITION CHRIS A VERLANDER 46 SUCCEEDS MR DOUGLAS AS PRESIDENT OF AMERICAN HERITAGE LIFE INSURANCE CO THE LIFE INSURANCE SUBSIDIARY HE WILL CONTINUE AS AN EXECUTIVE VICE PRESIDENT OF THE CORPORATION C RICHARD MOREHEAD 42 WAS PROMOTED TO EXECUTIVE VICE PRESIDENT OF BOTH COMPANIES AND CONTINUES AS CHIEF FINANCIAL OFFICER 9404290132 940429 FOX BROADCASTING CO ADDS STATIONS FOR NFL TELECASTS NEW YORK NEWS CORP'S FOX BROADCASTING CO SAID IT HAS SIGNED UP 20 NEW AFFILIATE STATIONS TO CARRY ITS NATIONAL FOOTBALL LEAGUE TELECASTS AND IN MOST CASES AT LEAST SOME OF ITS PRIMETIME PROGRAMS THE STATIONS BRING TO 42 THE NUMBER OF NEW AFFILIATES THE NETWORK HAS SIGNED SINCE IT STOLE THE NFL'S NATIONAL FOOTBALL CONFERENCE PACKAGE FROM CBS INC IN DECEMBER AT A COST OF 156 BILLION OVER FOUR YEARS FOX SAID THE ADDITIONS WHICH ARE MOSTLY IN SMALL MARKETS MEAN NEARLY 97 OF THE 942 MILLION US HOUSEHOLDS WITH TELEVISIONS WILL RECEIVE NFC TELECASTS FOX HOPES TO BOOST THAT TO 98 BEFORE FALL BEFORE FOX BEGAN SIGNING UP NEW STATIONS THE NETWORK REACHED 93 OF THE COUNTRY'S TV HOUSEHOLDS OF THESE NEW AFFILIATES THREE WILL CARRY ALL OF FOX'S PROGRAMMING LINEUP AND 17 WILL BE SECONDARY AFFILIATES WHICH ARE ALLIED WITH ANOTHER NETWORK BUT WILL CARRY THE FOOTBALL TELECASTS ABOUT A DOZEN OF THE SECONDARY AFFILIATES WILL ALSO CARRY AT LEAST SIX OF FOX'S 15 HOURS OF PRIMETIME PROGRAMMING EACH WEEK IN NONPRIMETIME HOURS 9404290130 940429 ROBERTS SEES MORE LOSSES FROM DERIVATIVES TRADING WASHINGTON MORE COMPANIES WILL ANNOUNCE LOSSES DUE TO TRADING IN DERIVATIVE FINANCIAL INSTRUMENTS SECURITIES AND EXCHANGE COMMISSIONER RICHARD ROBERTS PREDICTED I SUSPECT THAT THERE WILL BE MORE JOINING THIS GROUP OF COMPANIES THAT HAVE REPORTED LOSSES DUE TO DERIVATIVES MR ROBERTS SAID IN REMARKS PREPARED FOR AN EQUITY DERIVATIVES CONFERENCE HERE THE SPEECH WAS RELEASED IN NEW YORK THE EXPERIENCE OF THESE COMPANIES MAKES IT CLEAR HOW IMPORTANT ACCURATE AND ADEQUATE DISCLOSURE OF A COMPANY'S DERIVATIVES ACTIVITIES MAY BE AND THE NATURE AND LEVEL OF THE RISKS INVOLVED IN ORDER TO MAKE AN INFORMED INVESTMENT DECISION MR ROBERTS SAID THE SEC COMMISSIONER SAID THE FINANCIAL ACCOUNTING STANDARDS BOARD'S EXPOSURE DRAFT ON DERIVATIVES IS IMPORTANT TO IMPROVING CURRENT DISCLOSURE BY CORPORATIONS THE DRAFT IN ITS CURRENT FORM WOULD REQUIRE IMPROVED COMPANY DISCLOSURE FOR FISCAL YEARS ENDING AFTER DEC 15 1994 FOR COMPANIES WITH MORE THAN 150 MILLION IN ASSETS MR ROBERTS ALSO SAID THAT THE SEC HAS ALWAYS BEEN SKEPTICAL THAT SOME OF THE COMPLICATED FINANCIAL PRODUCTS WOULDN'T PERFORM AS ADVERTISED UNDER ADVERSE MARKET CONDITIONS THIS APPEARS TO HAVE BEEN THE CASE THUS FAR IN 1994 HE SAID 9404290129 940429 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 FEDERAL HOME LOAN BANK SYSTEM 125 MILLION OF NOTES DUE MAY 4 2001 PRICED AT PAR TO YIELD 736 ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR FOUR YEARS WAS PRICED AT A SPREAD OF 57 BASIS POINTS ABOVE TREASURYS AND WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO HEALTHTRUST INCTHE HOSPITAL CO 200 MILLION ISSUE OF 10YEAR SUBORDINATED NOTES PRICED AT PAR TO YIELD 1025 THE ISSUE NONCALLABLE FOR FIVE YEARS WAS PRICED AT A SPREAD OF 325 BASIS POINTS ABOVE TREASURYS RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POOR'S RATINGS GROUP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP AMERICAN BUILDINGS INITIAL OFFERING OF ABOUT 25 MILLION COMMON SHARES PRICED AT 10 EACH THROUGH UNDERWRITERS LED BY DEAN WITTER REYNOLDS AND PRUDENTIAL SECURITIES INC CRESCENT REAL ESTATE EQUITIES INC INITIAL OFFERING OF 122 MILLION COMMON SHARES PRICED AT 25 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO DEPARTMENT 56 INC OFFERING OF FIVE MILLION COMMON SHARES PRICED AT 27375 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO HEALTHTRUST INCTHE HOSPITAL CO OFFERING OF ABOUT SIX MILLION COMMON SHARES OF PRICED AT 2825 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO KEMPER STRATEGIC INCOME FUND INITIAL OFFERING OF THREE MILLION COMMON SHARES OF BENEFICIAL INTEREST PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY KEMPER SECURITIES MITYLITE INC INITIAL OFFERING OF 900000 COMMON SHARES PRICED AT 525 EACH THROUGH UNDERWRITERS LED BY PACIFIC CREST SECURITIES INC RJR NABISCO HOLDINGS CORP 1625 BILLION OF SERIES C DEPOSITARY SHARES EACH SHARE REPRESENTS ONETENTH SHARE OF SERIES C CONVERTIBLE PREFERRED STOCK ACCORDING TO MCM CORPORATEWATCH THE DEAL IS SUBJECT TO APPROVAL FROM THE SECURITIES AND EXCHANGE COMMISSION THE PREFERRED WAS PRICED AT 650 TO YIELD 925 THE CONVERSION CAP PRICE IS 9425 AND THE CAP PREMIUM IS 45 THE PREFERRED IS MANDATORILY CONVERTIBLE MAY 15 1997 AND IS CALLABLE IMMEDIATELY AT 112286 RATED BA3 BY MOODY'S AND DOUBLEBPLUS BY S&P THE PREFERRED WAS SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO CONNECTICUT HOUSING FINANCE AUTHORITY 85 MILLION OF SERIES 1994A HOUSING MORTGAGE FINANCE PROGRAM BONDS PRICED BY A CS FIRST BOSTON INC GROUP YIELDS RANGE FROM 34 IN 1995 TO 625 IN 2017 BOTH MOODY'S AND S&P HAVE RATED THE BONDS DOUBLEA TEXAS 75 MILLION OF STUDENT LOAN GENERALOBLIGATION BONDS APPARENTLY WON BY A LEHMAN BROTHERS GROUP THE SERIAL BONDS FOR REOFFERING RANGE FROM 5 BONDS DUE 1998 YIELDING 485 TO BONDS DUE 2016 PRICED AS 6S TO YIELD 625 THE 8465 MILLION TERM BONDS DUE 2019 ARE PRICED AS 6S AT 9678125 THE BONDS ARE RATED DOUBLEA BY MOODY'S AND S&P FEDERAL NATIONAL MORTGAGE ASSOCIATION 650 MILLION OF STRIPPED MORTGAGEBACKED SECURITIES STRIPS TRUST 263 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 355 MONTHS UNDERWRITERS INCLUDE PRUDENTIAL SECURITIES INC AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP ABN AMRO AUSTRALIA LTD DUTCH PARENT 75 MILLION AUSTRALIAN DOLLARS OF 8 EUROBONDS DUE JUNE 16 1999 AT ISSUE PRICE 1012 VIA ABN AMRO BANK NV RECOMMENDED REOFFER 99325 TO YIELD 817 A MARGIN OF 25 BASIS POINTS ABOVE COMPARABLE AUSTRALIAN GOVERNMENT NOTE GUARANTOR ABN AMRO BANK NV FEES TWO CABLE & WIRELESS INTERNATIONAL FINANCE BV UK PARENT 200 MILLION OF 8625 EUROBONDS DUE MARCH 25 2019 AT ISSUE PRICE 99536 VIA SAMUEL MONTAGU & CO REOFFERED AT 97661 TO YIELD 886 A MARGIN OF 90 BASIS POINTS ABOVE 2017 UK GILT GUARANTOR CABLE & WIRELESS PLC FEES 25 CADBURY SCHWEPPES AUSTRALIA LTD UK PARENT A75 MILLION OF 85 EUROBONDS DUE JUNE 15 1999 AT ISSUE PRICE 10169 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD BONDS YIELD 855 AT 99815 COMANAGERS' BREAKEVEN PRICE GUARANTOR CADBURY SCHWEPPES PLC FEES TWO DAIWA OVERSEAS FINANCE LTD JAPANESE PARENT 70 MILLION OF FIXED AND FLOATINGRATE EURONOTES DUE MAY 20 2004 AT ISSUE PRICE 10025 VIA DAIWA BANK CAPITAL MANAGEMENT LTD PAYABLE SEMIANNUALLY AT SIXMONTH DOLLAR LONDON INTERBANK OFFERED RATE PLUS 45 BASIS POINTS FOR FIRST THREE YEARS THEREAFTER COUPON 95 GUARANTOR DAIWA BANK LTD FEES 025 IRELAND SOVEREIGN 250 MILLION DUTCH GUILDERS OF 6875 EUROBONDS DUE JUNE 1 2004 AT ISSUE PRICE 10070 VIA RABOBANK NEDERLAND REOFFERED AT PAR TO YIELD 6875 A SPREAD OF 30 BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES ONE VOLVO GROUP FINANCE EUROPE BV SWEDISH PARENT ONE BILLION FRENCH FRANCS OF 675 EUROBONDS DUE MAY 27 1999 AT ISSUE PRICE 10085 VIA CREDIT LYONNAIS REOFFERED AT 993 TO YIELD 692 A SPREAD OF 67 BASIS POINTS ABOVE COMPARABLE FRENCH TREASURY GUARANTOR AB VOLVO FEES 1875 9404290128 940429 WHO'S NEWS TRW INC TRW INC CLEVELAND FOUR SENIOR EXECUTIVES WERE NAMED EXECUTIVE VICE PRESIDENTS AT THIS PROVIDER OF HIGHTECH PRODUCTS AND SERVICES TO THE AUTOMOTIVE AEROSPACE AND DEFENSE INDUSTRIES ROBERT J KOHLER 56 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF AVIONICS AND SURVEILLANCE AND JOHN P STENBIT 53 WAS NAMED EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF SYSTEMS INTEGRATION THEY WERE PREVIOUSLY GROUP VICE PRESIDENTS AND GENERAL MANAGERS OF THOSE RESPECTIVE BUSINESSES ALSO JOHN A JANITZ 51 CURRENTLY VICE PRESIDENT AND GENERAL MANAGER OCCUPANT RESTRAINTS WAS PROMOTED TO EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF OCCUPANT RESTRAINTS PHILIPPE LEMAITRE 44 CURRENTLY VICE PRESIDENT AND GENERAL MANAGER OF AUTOMOTIVE ELECTRONICS WILL BECOME EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF AUTOMOTIVE ELECTRONICS THESE APPOINTMENTS ARE EFFECTIVE AUG 1 9404290127 940429 TRUCKING FIRMS TEAMSTERS AGREE TO SETTLEMENT SHIPMENTS SHOULD RESUME BY TOMORROW ACCORD FOLLOWS A 3WEEK STRIKE BY KEVIN G SALWEN AND DANIEL MACHALABA STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE TEAMSTERS AND 20 TRUCKING COMPANIES AGREED TO SETTLE THEIR THREEWEEKOLD STRIKE WITH A PACT THAT SHOULD ENABLE STALLED SHIPMENTS TO BEGIN MOVING TOMORROW THE FOURYEAR ACCORD WHICH NEEDS TO BE APPROVED BY LEADERS OF THE TEAMSTERS LOCALS TODAY AND THEN BY THE RANK AND FILE OVER THE NEXT MONTH IS CAREFULLY CRAFTED TO ALLOW BOTH SIDES TO APPEAR VICTORIOUS THE TEAMSTERS SUCCESSFULLY THWARTED A PROPOSAL BY THE COMPANIES TO SHARPLY BOOST USE OF LOWPAID PARTTIME WORKERS WHO WOULD HAVE RECEIVED NO BENEFITS AND THEY GOT THEIR LARGEST INCREASES EVER IN PENSIONS AND HEALTHCARE COVERAGE A CRITICAL STEP FOR AN INDUSTRY IN WHICH 40 OF THE WORKERS ARE OVER 50 YEARS OLD AT THE SAME TIME THE TRUCKING COMPANIES WILL BE ABLE TO MORE THAN DOUBLE THE AMOUNT OF SHIPPING THEY DO BY RAIL A CHANGE THAT SHOULD SAVE THEM SUBSTANTIAL AMOUNTS OF MONEY AND MAKE THEM MORE COMPETITIVE WITH NONUNION COMPANIES AND UNITED PARCEL SERVICE OF AMERICA INC THE UNION ALSO GAVE UP THE RIGHT TO STRIKE OVER GRIEVANCES A CONTRACT CLAUSE THE COMPANIES HAVE BEEN TRYING TO KILL SINCE JIMMY HOFFA STRONGARMED IT INTO THE 1964 MASTER FREIGHT AGREEMENT MOREOVER THE COMPANIES WILL BE ABLE TO PAY NEW HIRES IF THERE ARE ANY A LOWER WAGE THOSE CONCESSIONS AND AN AGREEMENT TO LET THE TRUCKERS USE MORE PARTTIMERS UNDER CERTAIN CONDITIONS BROUGHT HOWLS OF ANGER FROM TEAMSTERS WHO OPPOSE UNION PRESIDENT RON CAREY IT APPEARS THAT CAREY CAVED IN ON THE GUT ISSUES THAT THE MEMBERS STRUCK TO PROTECT SAID RV DURHAM WHO LOST TO MR CAREY IN THE 1991 ELECTION WHILE MR DURHAM SAID HE WOULDN'T MOVE TO PROLONG THE STRIKE HE SAID THAT CAREY SHOULD HAVE STAYED AT THE BARGAINING TABLE AND FOUGHT FOR A CONTRACT THAT PROTECTS THE MEMBERS' JOB SECURITY BUT MR CAREY IN A STATEMENT LAST NIGHT ARGUED THAT THE CONTRACT OFFERED EXACTLY THE JOB PROTECTION THAT THE UNION HAD BEEN SEEKING OUR MEMBERS SAID JOB SECURITY WAS THE MAIN ISSUE AND BECAUSE THEY STOOD UP FOR THEIR FUTURE GOOD AMERICAN JOBS WILL BE FAR MORE SECURE THAN IF WE HAD ACCEPTED THE COMPANIES' FINAL OFFER ON MARCH 31 A HEFTY BACKLOG WILL CAUSE SHIPPING DELAYS OF UP TO A WEEK AFTER THE ROUGHLY 70000 TRUCKERS AND DOCK WORKERS RETURN TO THEIR JOBS IN ADDITION SOME CARRIERS THAT OPERATED DURING THE STRIKE REMAIN SEVERAL DAYS BEHIND IN THEIR DELIVERIES DUE TO THE SURGE OF NEW BUSINESS SOME SHIPPERS EXPECT THE STRIKE TO RESULT IN LASTING CHANGES IN DISTRIBUTION ABOUT 25 OF THE FREIGHT PREVIOUSLY CARRIED BY THE NATIONAL UNIONIZED CARRIERS WILL STAY WITH CARRIERS THAT PROVIDED TRANSPORTATION DURING THE STRIKE ESTIMATED JOE CUTRONA EXECUTIVE DIRECTOR OF NATIONAL SMALL SHIPMENTS TRAFFIC CONFERENCE A GROUP OF ABOUT 500 COMPANIES THAT SHIP LESSTHANTRUCKLOAD FREIGHT ALBERT REGA MANAGER OF TRANSPORTATION PLANNING AND ECONOMICS AT NATIONAL STARCH & CHEMICAL CO PART OF UNILEVER GROUP SAID HE WILL FAVOR NONUNION CARRIERS SOMEWHAT MORE CARRIERS THAT ARE LESS VULNERABLE TO UNION DISRUPTIONS WILL BE GIVEN PREFERENCE HE SAID OTHER SHIPPERS SAID THEY DISCOVERED ALTERNATIVES DURING THE STRIKE THAT THEY LIKED SCHNEIDER NORTH AMERICA/SQUARE D CO WHICH IS OWNED BY GROUPE SCHNEIDER IN PARIS SAID THAT BY CONSOLIDATING FREIGHT INTO FULL TRUCKLOADS IT CUT ONE DAY FROM THE TIME IT TAKES TO SHIP ELECTRICAL COMPONENTS FROM MEMPHIS TENN TO CALIFORNIA THE STRIKE FORCED US TO TRY SOME DIFFERENT TYPES OF MOVES WE ARE FINDING IN SOME CASES HAVE IMPROVED OUR SERVICE TO CUSTOMERS SAID CHARLES GERARDI DIRECTOR OF DISTRIBUTION OPERATIONS AT THE US UNIT SOME BUSINESS EXECUTIVES WERE THRILLED THE WALKOUT APPEARED TO BE OVER IT'S A RELIEF TO ME SAID JACK MARINE VICE PRESIDENT OF CAPITAL PANTS CO A PHILADELPHIABASED PANTS MAKER THAT HAS A FABRIC SHIPMENT IDLED NEAR LOS ANGELES WE HAVE SURVIVED BUT A LOT OF PEOPLE HAVE SUFFERED NOW THE COMPANIES AND UNION EACH WITH FINANCIAL PROBLEMS MUST SEE HOW THE NEW PACT PLAYS OUT THE UNION WHICH HAS PAID 28 MILLION IN STRIKE BENEFITS HAS CLEANED OUT ITS STRIKE FUND AND OWES AFLCIO UNIONS 14 MILLION THIS COMES AT A TIME WHEN IT IS RUNNING A MONTHLY DEFICIT AND RANK AND FILERS SOUNDLY DEFEATED A BID TO RAISE DUES THE TRUCKERS FACED WITH INTENSE COMPETITION FROM NONUNION CARRIERS AREN'T LIKELY TO FIND THE PACT A PANACEA THE CARRIERS DIDN'T GET EVERYTHING THEY SAID THEY NEEDED TO BECOME FINANCIALLY HEALTHY MR CUTRONA SAID NEVERTHELESS HE CONTINUED THE PACT'S AUTHORIZATION OF MORE RAIL AND NONOVERTIME LABOR WILL HELP THE STRUCK CARRIERS TO REDUCE COSTS TO SOME EXTENT AND BECOME MORE COMPETITIVE WITH THE REGIONAL AND NONUNION CARRIERS UNDER THE ACCORD THE COMPANIES WILL BE ABLE TO SHIP 28 OF THEIR FREIGHT OVER RAIL LINES THE CURRENT CONTRACT LIMITS THEM TO 6 BUT THE COMPANIES PROBABLY HAVE BOOSTED THAT TO MORE THAN 10 INFORMALLY MANAGEMENT AT THE 20 COMPANIES AND TWO OTHERS THAT WILL ALSO BE COVERED BY THE AGREEMENT HAD SOUGHT A 35 MAXIMUM IN EXCHANGE FOR LETTING MORE FREIGHT MOVE ON THE RAILS THE COMPANIES AGREED TO OFFER ANY TEAMSTER AFFECTED BY THE MOVE A DRIVER JOB AT ANOTHER LOCATION WITH NO CHANCE OF LAYOFF DOCK CASUALS THE PARTTIME WORKERS WHO LOAD FREIGHT WILL HAVE THEIR PAY FROZEN AT 1445 AN HOUR OVER THE LIFE OF THE CONTRACT THAT WILL GIVE THE COMPANIES SOME OF THE LOWERCOST LABOR THEY WANT ALTHOUGH THE WAGE LEVEL IS MUCH HIGHER THAN MANAGEMENT'S EARLY OFFERS OF LESS THAN 10 AN HOUR COMPANIES WILL BE ABLE TO USE THE CASUAL WORKERS INSTEAD OF HAVING TO PAY OVERTIME TO DOCK WORKERS MANY OF WHOM CURRENTLY WORK 50HOUR WEEKS OR MORE TEAMSTERS DISSIDENTS JUMPED ON THE CLAUSE TO CRITICIZE THE CONTRACT THAT WILL BE A BIG PROBLEM TO EXPLAIN TO PEOPLE SAID RICHARD LEEBOVE A PUBLICRELATIONS EXECUTIVE WORKING FOR TEAMSTERS WHO OPPOSE PRESIDENT RON CAREY MANY OF THESE GUYS WORK 50 TO 60 HOURS THAT'S THE SNOWMOBILE THE COTTAGE UP NORTH FOR THESE GUYS THE TEAMSTERS BLOCKED THE COMPANIES' PROPOSAL TO USE NEW 9ANHOUR PARTTIMERS TO WORK 24 OF THE HOURS NOW WORKED BY FULLTIME DOCK WORKERS THESE PARTTIMERS WOULD HAVE HAD NO HEALTH OR PENSION BENEFITS IN THEIR FIRST YEAR OF EMPLOYMENT AND MODEST BENEFITS THEREAFTER SOME TEAMSTERS WALKING THE PICKET LINES GRUMBLED OVER THE ACCORD IT SOUNDS AS IF IT IS CONCESSIONARY SAID KENNETH STOCKER PRESIDENT OF LOCAL 430 IN YORK PA STILL HE SAID WE AREN'T GOING TO LIKE IT BUT OUR PEOPLE AREN'T GOING TO LIKE STARTING A FOURTH WEEK ON THE PICKET LINE THEY ARE ITCHING TO GET BACK TO WORK SOME WORKERS ACKNOWLEDGED THE NEED FOR CONCESSIONS THE FLEXIBILITY THE COMPANIES PROBABLY WILL GET WILL MAKE THEM MORE COMPETITIVE WITH NONUNION CARRIERS SAID DRIVER ROBERT BARNER WHO WORKS FOR CF MOTORFREIGHT A UNIT OF CONSOLIDATED FREIGHTWAYS INC PALO ALTO CALIF I FEEL THE UNION KNEW IT HAD TO GIVE CONCESSIONS TO KEEP THE COMPANIES IN BUSINESS AND US WORKING 9404290126 940429 RJR NABISCO HOLDINGS SELLS 1625 BILLION OF PREFERRED NEW YORK RJR NABISCO HOLDINGS CORP SOLD 1625 BILLION OF PREFERRED STOCK AT 650 A SHARE THE 250 MILLIONSHARE OFFERING WILL PAY INVESTORS A YIELD OF 925 WE ARE ABSOLUTELY DELIGHTED THAT WE RAISED 15 BILLION IN THIS MARKET AN RJR SPOKESMAN SAID RJR HAS SAID IT IS CONSIDERING SEPARATING ITS FOOD AND TOBACCO BUSINESSES OR MAKING AN ACQUISITION THE PROCEEDS WOULD AID EITHER OPTION THE RJR DEAL FACED A TOUGH SELL INITIALLY BECAUSE OF THE DEPRESSED VALUE OF TOBACCO STOCKS BUT WAS AIDED BY THE MARKET'S POSITIVE REACTION TO BA T INDUSTRIES PLC'S 1 BILLION ACQUISITION OF AMERICAN BRANDS INC'S DOMESTIC TOBACCO UNIT STILL TRADERS SAID RJR HAD INITIALLY PLANNED TO SELL 300 MILLION SHARES BUT HELD BACK SOME SHARES BECAUSE IT WOULD HAVE LIKED A HIGHER PRICE FOR THE SHARES 9404290125 940429 POLITICS & POLICY NANNY TAX' BILL MOVES TOWARD FINAL PASSAGE BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A NANNY TAX MEASURE LIMITING INDIVIDUALS' LIABILITY TO PAY SOCIAL SECURITY LEVIES FOR HOUSEHOLD EMPLOYEES IS MOVING TOWARD PASSAGE IN CONGRESS MORE THAN A YEAR AFTER THE ISSUE DOOMED PRESIDENT CLINTON'S NOMINEE FOR ATTORNEY GENERAL THE HOUSE WAYS AND MEANS COMMITTEE BY A VOICE VOTE APPROVED A BILL REQUIRING THAT EMPLOYERS PAY SOCIAL SECURITY TAXES FOR WORKERS WHO MAKE AT LEAST 1200 THIS YEAR UP FROM THE CURRENT THRESHOLD OF 50 A QUARTER SINCE ZOE BAIRD'S FAILED NOMINATION THE ADMINISTRATION AND LAWMAKERS IN BOTH PARTIES HAVE CALLED FOR CHANGING THAT THRESHOLD ARGUING THAT IT'S SO UNREALISTIC COVERING EVEN OCCASIONAL BABYSITTERS OR YARD WORKERS AS TO INVITE NONCOMPLIANCE BUT PAST PROPOSALS FALTERED FOR PROCEDURAL REASONS THE MEASURE IS EXPECTED TO PASS IN THE HOUSE SOON LAST MONTH THE SENATE FINANCE COMMITTEE UNANIMOUSLY VOTED FOR A SEPARATE VERSION RAISING THE THRESHOLD TO 620 A YEAR BUT CHAIRMAN DANIEL MOYNIHAN D NY INDICATED HE WOULD AWAIT A HOUSEPASSED BILL BEFORE PROCEEDING THE HOUSE COMMITTEE'S CHAIRMAN REP DAN ROSTENKOWSKI D ILL YESTERDAY SAID HE EXPECTED THE SENATE ULTIMATELY TO ACCEPT THE 1200AYEAR THRESHOLD BOTH THE HOUSE AND SENATE MEASURES WOULD ALLOW THE THRESHOLD TO RISE IN FUTURE YEARS IN ACCORDANCE WITH AVERAGE WAGES BOTH VERSIONS ALSO WOULD SIMPLIFY EMPLOYERS' PAPERWORK BY ALLOWING THEM TO REPORT ANY LIABILITIES FOR THEIR WORKERS' SOCIAL SECURITY TAXES ON THEIR OWN INCOMETAX RETURNS THE HOUSE BILL UNLIKE THE SENATE VERSION WOULD BE RETROACTIVE SETTING THE 1993 THRESHOLD FOR PAYING SOCIAL SECURITY TAXES AT WAGES OF 1150 FOR THE YEAR AFTER THIS YEAR'S 1200 THE LEVEL WOULD RISE TO 1250 IN 1995 ADMINISTRATION OFFICIALS HAVE SUPPORTED A 1000 THRESHOLD ARGUING THAT ANYTHING HIGHER WOULD TOO GREATLY LIMIT DOMESTIC WORKERS' FUTURE ELIGIBILITY FOR SOCIAL SECURITY BENEFITS BUT LAWMAKERS WHO HAVE SHARED THAT CONCERN LED BY REP BARBARA KENNELLY D CONN OF THE WAYS AND MEANS COMMITTEE AGREED TO BACK THE HOUSE BILL AS A COMPROMISE WITH THE BILL'S SPONSOR REP ANDY JACOBS D IND WHO INITIALLY WANTED AN 1800AYEAR WAGE THRESHOLD THE COMMITTEE NEXT WEEK IS EXPECTED TO APPROVE A BILL MAKING THE SOCIAL SECURITY ADMINISTRATION AN INDEPENDENT AGENCY IT NOW IS PART OF THE HEALTH AND HUMAN SERVICES DEPARTMENT THE PANEL CONSIDERED AMENDMENTS TO THIS MEASURE YESTERDAY AND BY VOICE VOTE APPROVED ONE THAT WOULD STOP FEDERAL DISABILITY PAYMENTS TO DRUG ADDICTS AND ALCOHOLICS WHO HAVEN'T CONTROLLED THEIR ADDICTIONS AFTER THREE YEARS 9404290124 940429 HEARD ON THE STREET BRISTOLMYERS DIVIDEND ATTRACTS SOME BUYERS FOLLOWING A PUNISHING TWO YEARS FOR ITS STOCK BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS HAVE RETURNED 10 A YEAR HISTORICALLY BUY BRISTOLMYERS SQUIBB AND YOU ARE ALREADY HALFWAY THERE THAT'S THE THINKING OF SOME BARGAINHUNTING MONEY MANAGERS WHO LOVE THE DRUG MAKER'S 54 DIVIDEND YIELD AS THEY SEE IT THE DIVIDEND IS SAFE SO ALL YOU NEED IS A MODEST SHAREPRICE GAIN AND BRISTOLMYERS WILL BE A WINNING INVESTMENT LATELY THE SHARES HAVE BEEN ANYTHING BUT BUOYANT AFTER HITTING AN ALLTIME HIGH OF 90 1/8 IN EARLY 1992 BRISTOLMYERS BEGAN A LONG DISHEARTENING RIDE DOWN THE STOCK CLOSED YESTERDAY AT 53 5/8 UP 5/8 ON THE DAY BUT NOT FAR ABOVE THE 52WEEK LOW OF 50 IT'S BEEN BOMBED SO BADLY AT THIS POINT THAT IT'S NOT A BAD BUY SAYS WILLIAM LIPPMAN COMANAGER OF THE 275 MILLION FRANKLIN RISING DIVIDENDS FUND IT'S TRADING LIKE A UTILITY FOR SHAREHOLDERS IT HAS BEEN AN AGONIZING REVERSAL OF FORTUNE BACK IN 1991 SOME ANALYSTS WERE PREDICTING 20 ANNUAL EARNINGS GROWTH FROM THE NEW YORK MAKER OF DRUGS MEDICAL DEVICES INFANT FORMULA AND TOILETRIES MONEY MANAGERS SAW GREAT VALUE IN THE COMPANY'S BRANDNAME PRODUCTS WHICH INCLUDE ENFAMIL BABY FORMULA CLAIROL HAIR PRODUCTS BAN DEODORANT AND PAIN RELIEVERS BUFFERIN AND EXCEDRIN BUT IN THE PAST TWO YEARS THE COMPANY HAS BEEN BATTERED BY WORRIES ABOUT HEALTHCARE REFORM SLUGGISH DRUG SALES A TOUGH MARKET FOR CONSUMER PRODUCTS AND A STRONG DOLLAR WHICH HAS CUT INTO THE VALUE OF THE COMPANY'S EUROPEAN PROFITS BRISTOLMYERS EARNED 440 A SHARE LAST YEAR BEFORE A 60CENT SPECIAL CHARGE TO COVER BREASTIMPLANT LIABILITY CLAIMS WALL STREET ISN'T LOOKING FOR PROFITS TO GET MUCH BETTER ACCORDING TO FIRST CALL WHICH WATCHES BROKERAGE REPORTS ANALYSTS FIGURE BRISTOLMYERS WILL EARN 455 A SHARE THIS YEAR 480 IN 1995 AND 495 IN 1996 THAT'S A THREEYEAR AVERAGE ANNUAL GROWTH RATE OF JUST 4 FOUR PERCENT GROWTH IS PROBABLY A REASONABLE ASSESSMENT SAYS JACK LAMBERTON AN ANALYST WITH NATWEST SECURITIES THEY REALLY DON'T HAVE ANY DRUGS THAT ARE BLOCKBUSTERS TO DRIVE THEIR GROWTH WITH A COMPANY OF THAT SIZE THEY DON'T JUST NEED A BLOCKBUSTER THEY NEED A STABLE OF BLOCKBUSTERS IF ANALYSTS' EARNINGS FORECASTS PROVE ACCURATE BRISTOLMYERS IS LIKELY TO BE AN UNINSPIRING BUT STILL PROFITABLE INVESTMENT PRESUMING THE STOCK CONTINUES TO TRADE AT ITS CURRENT MULTIPLE OF 14 TIMES EARNINGS IT WOULD CLIMB 4 A YEAR AS EARNINGS GRADUALLY IMPROVE ADD THE STOCK'S 54 DIVIDEND TO THAT 4 SHAREPRICE APPRECIATION AND YOU HAVE AN ANNUAL TOTAL RETURN OF NEARLY 95 THAT'S NOT BAD IN THIS KIND OF MARKET SAYS FRANKLIN'S MR LIPPMAN BRISTOLMYERS' RICH YIELD ATTRACTED THE 15 BILLION LINDNER DIVIDEND FUND WE'RE NOT TECHNICAL ANALYSTS SAYS LINDNER'S MANAGER ERIC RYBACK BUT IT LOOKS LIKE THE STOCK MAY HAVE BOTTOMED OUT HERE AND MAY BE DRIFTING HIGHER MR RYBACK RECKONS BRISTOLMYERS IS A VERY SAFE PLACE TO BE THEY HAVE A TREMENDOUS AMOUNT OF CASH ON THEIR BALANCE SHEET THEY HAVE A YIELD OF AROUND 55 AND WE BELIEVE THE COMPANY WILL BE AROUND FOR A WHILE AS OF DEC 31 THE COMPANY HAD CASH AND MARKETABLE SECURITIES OF 27 BILLION AND LONGTERM DEBT OF JUST 588 MILLION BUT WHAT ABOUT THE EARNINGS THAT'S THE ONE FACTOR THAT COULD SURPRISE EVERYBODY IN THE FUTURE MR RYBACK SAYS IF SOME OF THEIR DRUGS COME THROUGH I THINK WE'LL BE REWARDED ON THE UPSIDE WE THINK THERE'S MORE UPSIDE THAN DOWNSIDE ALTERNATIVELY BRISTOLMYERS COULD BOOST ITS STOCK PRICE THROUGH A RESTRUCTURING THE COMPANY RECENTLY SOLD SOME BUSINESSES AND ANALYSTS SPECULATE THAT OTHER DIVISIONS COULD GET SOLD IF SOMEONE WAS EVER TO COME IN HERE AND DO AN AGGRESSIVE RESTRUCTURING JOB YOU'D MAKE A LOT OF MONEY SAYS NOLA FALCONE MANAGER OF THE 11 BILLION EVERGREEN TOTAL RETURN FUND BUT EVEN WITHOUT A RESTRUCTURING STEPHEN LEEB BELIEVES THE DRUG MAKER IS A BARGAIN BRISTOLMYERS SQUIBB IS A GREAT TOTALRETURN STOCK SAYS MR LEEB EDITOR OF PERSONAL FINANCE A TWICEMONTHLY NEWSLETTER BASED IN ALEXANDRIA VA I THINK THEY'LL GROW 7 OR 8 A YEAR AND THEY'LL CONTINUE TO RAISE THEIR DIVIDEND THIS IS NOT A WAY OF GETTING RICH QUICK BUT IT'S A WAY OF GETTING RICH SLOWLY AND RELATIVELY SAFELY 9404290123 940429 BUSINESS BRIEFS CALIFORNIA MICROWAVE INC WAS AWARDED A 77 MILLION EXTENSION OF A MULTIYEAR CONTRACT TO BUILD A GERMAN MOBILE COMMUNICATIONS NETWORK BY EPLUS MOBILFUNK GMBH OF DUSSELDORF ITT CORP'S ITT SHERATON UNIT COMPLETED ITS ACQUISITION OF THE PHOENICIAN RESORT IN SCOTTSDALE ARIZ AND THE CRESCENT HOTEL IN PHOENIX AS WELL AS OTHER DEVELOPMENT LAND TERMS OF THE DEALS WEREN'T DISCLOSED CALNETICS CORP SIGNED A LETTER OF INTENT TO ACQUIRE AGRICULTURAL PRODUCTS INC ONTARIO CALIF FOR 44 MILLION IN CASH AND NOTES THE TRANSACTION IS EXPECTED TO CLOSE IN MAY 9404290122 940429 NOVELL INC FILES SUIT ALLEGING ILLEGAL SELLING UPGRADING OF SOFTWARE PROVO UTAH NOVELL INC SAID IT FILED LAWSUITS AGAINST TWO COMPANIES CHARGING THEY ILLEGALLY UPGRADED AND SOLD VERSIONS OF ITS NETWARE NETWORKING SOFTWARE NOVELL SAID IT FILED FEDERAL LAWSUITS APRIL 21 AGAINST AQUA SYSTEMS INC A NOVELL RESELLER BASED IN BELLROSE NY AND DIGITAL SOFT A FOUNTAIN VALLEY CALIF RESELLER NOVELL SAID THE RESELLERS OBTAINED MULTIPLE COPIES OF UPGRADED SOFTWARE BY ILLEGALLY REUSING SERIAL NUMBERS FROM ORIGINAL SOFTWARE THEN SOLD THE UPGRADES AT A LARGE PROFIT CUSTOMERS ARE PROHIBITED FROM USING SERIAL NUMBERS FROM ORIGINAL SOFTWARE MORE THAN ONCE TO OBTAIN UPGRADES THE COMPANY SAID RICHARD RIFE A NOVELL LAWYER SAID THE COMPANY HAS PREVIOUSLY SUED PIRATES OF ITS SOFTWARE PRODUCTS BUT THE CASES AGAINST AQUA AND DIGITAL SOFT WERE THE FIRST INVOLVING ILLEGAL UPGRADES MR RIFE SAID NOVELL HAS HAD REPORTS OF SIMILAR ILLEGAL UPGRADING FROM OTHER SOFTWARE MANUFACTURERS AND THAT THE PROBLEM COULD BE COSTING SOFTWARE COMPANIES AND DISTRIBUTORS MILLIONS IN LOST PROFITS AQUA SYSTEMS AND DIGITAL SOFT COULD NOT BE REACHED FOR COMMENT 9404290121 940429 BUSINESS BRIEF TWO INSURANCE FIRMS POST PROFIT RISES USF&G REPORTS 62 EARNINGS DROP DESPITE UNUSUALLY HIGH DISASTER LOSSES LINCOLN NATIONAL CORP POSTED RECORD FIRSTQUARTER PROFITS WHILE AMERICAN INTERNATIONAL GROUP INC REPORTED MODESTLY IMPROVED EARNINGS MEANWHILE USF&G CORP REPORTED A 62 DROP IN NET INCOME TO 23 MILLION FROM 61 MILLION A YEAR EARLIER EXCLUDING ACCOUNTING CHANGES IN THE YEAREARLIER PERIOD PROFIT WAS FLAT BOUYED BY STRONG ANNUITY SALES LINCOLN'S NET INCOME WAS 151 MILLION OR 146 A SHARE COMPARED WITH A 274 MILLION LOSS OR A 28 CENTASHARE LOSS IN THE YEAREARLIER QUARTER EXCLUDING AN ACCOUNTING CHANGE THE COMPANY POSTED A PROFIT OF 69 MILLION OR 69 CENTS A SHARE A YEAR EARLIER IN THE YEAREARLIER QUARTER THERE WERE FOUR MILLION OR 4 FEWER SHARES OUTSTANDING THIS YEAR'S FIRSTQUARTER PROFIT ALSO INCLUDED A GAIN OF 441 MILLION OR 42 CENTS A SHARE FROM THE SALE OF 64 OF THE STOCK OF EMPHESYS FINANCIAL GROUP INC THROUGH AN INITIAL PUBLIC OFFERING REVENUE GREW 35 TO 201 BILLION INVESTORS BOOSTED THE INSURER'S COMMON STOCK 27 OR 1 TO 38125 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE IMPROVED PROFITABILITY CAME DESPITE NEARLY 30 MILLION OF PRETAX CATASTROPHE LOSSES SPLIT BETWEEN THE SOUTHERN CALIFORNIA EARTHQUAKE AND WINTER STORMS BUT LINCOLN BENEFITED FROM A 35 INCREASE TO 42 MILLION IN ANNUITY AND LIFE INSURANCE SALES AND ANNUITY EARNINGS SPIKED 42 TO 281 MILLION LINCOLN'S OPERATING PROFIT WAS IN LINE WITH ANALYSTS' EXPECTATIONS BUT THE STOCK NONETHELESS REBOUNDED FROM A RECENT INDUSTRYWIDE SELLOFF ANALYSTS SAID INVESTORS HAD FEARED THAT CATASTROPHE LOSSES WERE HEAVIER THAN EXPECTED GIVEN SOME UNPLEASANT LASTMINUTE SURPRISES FROM SMALLER PROPERTY AND CASUALTY FIRMS AT AIG RESULTS ALSO MET ANALYSTS' EXPECTATIONS THE COMPANY POSTED A 2 INCREASE IN NET INCOME OVER THE YEAREARLIER PERIOD TO 5056 MILLION OR 159 A SHARE FROM 4959 MILLION OR 156 A SHARE EXCLUDING A 1993 ACCOUNTING CHANGE AND REALIZED CAPITAL GAINS IN BOTH YEARS INCOME GREW 6 TO 480 MILLION FROM 4527 MILLION DESPITE THE IMPROVEMENT THE COMPANY'S COMMON SHARES FELL 32 OR 2875 TO 86 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ANALYSTS SAID INVESTORS WERE DISAPPOINTED THAT NET PREMIUMS WRITTEN IN THE KEY PROPERTYANDCASUALTY BUSINESS WHICH JUMPED 73 TO 262 BILLION WERE DOWN FROM THE 10 GROWTH REPORTED IN 1993 TOTAL REVENUE ROSE 125 TO 523 BILLION MEANWHILE USF&G EARNED 13 CENTS A SHARE COMPARED WITH 58 CENTS IN THE YEAREARLIER PERIOD INCLUDING THE ACCOUNTING CHANGES ITS REVENUE SHRANK 125 TO 766 MILLION THIS YEAR'S FIRST QUARTER INCLUDED 40 MILLION OF CATASTROPHE LOSSES VS 30 MILLION FOR THE YEAREARLIER PERIOD STILL USF&G SHARES ROSE 3 OR 375 CENTS TO 12875 IN BIG BOARD TRADING 9404290120 940429 NUVEEN BOARD CLEARS PACT TO COMBINE FOUR FUNDS SPECIAL TO THE WALL STREET JOURNAL CHICAGO THE BOARDS OF FOUR NUVEEN FUNDS APPROVED A PACT UNDER WHICH NUVEEN PREMIUM INCOME MUNICIPAL FUND 4 WILL ACQUIRE THE OTHER FUNDS RESULTING IN A FUND WITH ASSETS OF ABOUT 845 MILLION IN A NEWS RELEASE NUVEEN SAID NEW COMMON SHARES OF FUND 4 WILL BE DISTRIBUTED TO HOLDERS OF COMMON SHARES IN THE OTHER FUNDS MUNIPREFERRED SHAREHOLDERS OF EACH FUND WILL CONTINUE AS PREFERRED SHAREHOLDERS OF THE COMBINED FUND NUVEEN SAID NUVEEN SAID THE TRANSACTION MERGES THE ASSETS AND LIABILITIES OF NUVEEN PREMIUM INCOME MUNICIPAL FUND 3 WITH ASSETS AT APRIL 28 OF 158 MILLION FUND 4 WITH ASSETS OF 396 MILLION FUND 5 WITH ASSETS OF 177 MILLION AND FUND 6 WITH ASSETS OF 112 MILLION THE COMPANY SAID THE MERGER IS SUBJECT TO A SHAREHOLDER VOTE AT THE FUNDS' ANNUAL SHAREHOLDER MEETING 9404290119 940429 MONEYMARKET ASSETS SLIPPED 522 BILLION IN MOST RECENT WEEK WASHINGTON MONEYMARKET MUTUAL FUND ASSETS SLID BY 522 BILLION TO 59668 BILLION FOR THE WEEK ENDED TUESDAY FROM A REVISED FIGURE OF 60190 BILLION THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF 672 RETAIL MONEYMARKET MUTUAL FUNDS DECREASED BY 312 BILLION TO 42322 BILLION AMONG RETAIL FUNDS ASSETS OF 420 TAXABLE MONEYMARKET FUNDS FELL 137 BILLION TO 33044 BILLION ASSETS OF 252 TAXEXEMPT FUNDS DROPPED 175 BILLION TO 9278 BILLION ASSETS OF 285 INSTITUTIONAL MONEYMARKET FUNDS SLID 210 BILLION TO 17347 BILLION AMONG INSTITUTIONAL FUNDS 230 TAXABLE MONEYMARKET FUND ASSETS FELL BY 152 BILLION TO 15205 BILLION ASSETS OF 55 TAXEXEMPT FUNDS DECLINED 5779 MILLION TO 2142 BILLION 9404290117 940429 TECHNOLOGY & HEALTH MBI TREATMENT GETS CLEARANCE FROM THE FDA BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL MOLECULAR BIOSYSTEMS INC AFTER A 3 1/2YEAR WAIT RECEIVED PRELIMINARY APPROVAL FROM THE US FOOD AND DRUG ADMINISTRATION TO MARKET ITS FLAGSHIP PRODUCT A CARDIAC ULTRASOUND IMAGING AGENT BOY DO I FEEL GOOD SAID KENNETH J WIDDER MBI CHAIRMAN AND CHIEF EXECUTIVE OFFICER THIS TAKES US INTO THE LEAGUE OF FULLFLEDGED COMPANIES IT ALSO PUTS US INTO A DISTINCTIVE CLASS OF BIOTECHNOLOGY COMPANIES THAT HAVE GOTTEN A PRODUCT THROUGH THE FDA DR WIDDER HOPES FINAL APPROVAL WILL BE GRANTED IN A FEW WEEKS AFTER THE COMPANY MEETS WHAT HE SAID WERE MINOR REQUESTS INCLUDING MECHANICAL LABELING CHANGES THE COMPANY ALSO WILL BE REQUIRED AS EXPECTED TO PERFORM POSTMARKETING SURVEILLANCE STUDIES TO MONITOR ALBUNEX'S PERFORMANCE MBI'S SHARES JUMPED 13 OR 2 ON THE NEWS CLOSING AT 18 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE MARKET REACTION WAS TEMPERED BY CONCERNS ABOUT POSSIBLE COMPETITIVE THREATS AND THE SIZE OF THE MARKET ANALYSTS SAID SINCE THE COMPANY'S FDA APPLICATION FOR ALBUNEX WAS SUBMITTED IN SEPTEMBER 1990 GERMANY'S SCHERING AG AND SONUS PHARMACEUTICALS INC A PRIVATELY HELD SEATTLE CONCERN HAVE BEGUN TESTING WHAT MAY BE MORE POWERFUL IMAGING AGENTS THE ANALYSTS SAID ALBUNEX HELPS CARDIOLOGISTS DIAGNOSE HEART DISEASE BY VISUALIZING THE BLOOD FLOWING THROUGH THE CHAMBERS OF THE HEART THE COMPANY SAID ALBUNEX IS INJECTED INTO A VEIN IN A PATIENT'S ARM AND THEN OBSERVED FLOWING THROUGH THE BODY DURING A SPECIALIZED ULTRASOUND PROCEDURE CALLED AN ECHOCARDIOGRAM ALBUNEX WILL BE USED WITH STRESS TESTS TO IMPROVE THE ACCURACY OF THAT TEST SAID WILLIAM F ARMSTRONG ONE OF THE AGENT'S CLINICAL INVESTIGATORS AND AN ASSOCIATE PROFESSOR OF MEDICINE AT THE UNIVERSITY OF MICHIGAN ALBUNEX EVENTUALLY MAY BE USED IN THE EMERGENCY ROOM TO IDENTIFY A CORONARY BLOCKAGE THAT CAUSED A HEART ATTACK DR ARMSTRONG SAID THE COST OF AN ECHOCARDIOGRAM IN THE US RANGES FROM 300 TO 1000 MBI SAID ALBUNEX WHICH WILL ADD ABOUT 100 TO THAT COST WILL BE MARKETED IN THE US BY A DIVISION OF MALLINCKRODT GROUP INC ST LOUIS MALLINCKRODT SHARES ALSO TRADED ON THE BIG BOARD CLOSED UNCHANGED AT 3275 ALEX ZISSON AN ANALYST AT HAMBRECHT & QUIST SAID THE WINDOW OF OPPORTUNITY HAS BEEN CLOSING A LITTLE MORE EVERY DAY THAT THE FDA DIDN'T APPROVE THE PRODUCT THE DELAY ALLOWED SONUS AND SCHERING TO START DEVELOPING SECONDGENERATION PRODUCTS THAT LOOK LIKE THEY ARE A LOT BETTER THAN ALBUNEX THE ANALYST SAID I DON'T THINK THOSE PRODUCTS WILL BE OUT FOR FIVE OR SIX YEARS DR WIDDER SAID ADDING THAT MBI HOPES TO LAUNCH HUMAN TRIALS FOR ITS OWN SECONDGENERATION PRODUCT LATE THIS YEAR WORLDWIDE SALES OF ALBUNEX WILL REACH ABOUT 150 MILLION AT MATURITY ESTIMATES PETER DRAKE AN ANALYST AT VECTOR SECURITIES INTERNATIONAL HAMBRECHT & QUIST'S MR ZISSON SAID HE WAS CAUTIOUS ABOUT MAKING SUCH PROJECTIONS BECAUSE OF ALBUNEX'S SLOW START IN JAPAN ALBUNEX WAS LAUNCHED THERE IN DECEMBER AND SALES HAVE BEEN ONLY ABOUT 25 MILLION HE ESTIMATES DR WIDDER SAYS THE LAUNCH TIMING DIDN'T ALLOW JAPANESE HOSPITALS TO INCLUDE THE DRUG IN THEIR BUDGETS FOR THE FISCAL YEAR ENDED MARCH 31 9404290116 940429 CONTINENTAL TO CUT MEALS ON SHORTER DOMESTIC TRIPS HOUSTON CONTINENTAL AIRLINES SAID IT WILL ELIMINATE MEALS ON DOMESTIC FLIGHTS LESS THAN 2 1/2 HOURS LONG EFFECTIVE MAY 1 THE CARRIER WHICH HAS BEEN SHIFTING TO LOWFRILLS AND LOWCOST FLIGHTS IN MANY MARKETS IT SERVES SAYS IT'S CUTTING OUT THE FOOD IN RESPONSE TO RECENT STUDIES OF PASSENGER PREFERENCES PEOPLE WOULD RATHER PAY A LOWER FARE THAN EAT SAID A CONTINENTAL SPOKESMAN CONTINENTAL SAID IT WILL SERVE LIGHT SNACKS SUCH AS CRACKERS OR COOKIES ON SHORTER FLIGHTS DEPENDING ON THE TIME OF DAY AND WILL CONTINUE TO SERVE PEANUTS AND DRINKS WHILE THE MEALS THEMSELVES MIGHT COST ONLY A FEW DOLLARS THE AIRLINE SAID THEY CONTAIN INVISIBLE COSTS SUCH AS STORAGE CLEANUP PREPARATION AND GALLEY SPACE THAT CAN ADD AS MUCH AS 40 TO THE PRICE OF A ROUNDTRIP TICKET CONTINENTAL ALSO SAID IT WILL SERVE LIGHTER MEALS ON FLIGHTS LONGER THAN 2 1/2 HOURS AND WILL UPGRADE THE MEALS IN 35 OF ITS BIGGEST BUSINESS MARKETS 9404290115 940429 LETTERS TO THE EDITOR ADAM SMITH'S UNEQUIVOCAL STAND HERBERT STEIN'S ENTHUSIASM ON REREADING ADAM SMITH'S WEALTH OF NATIONS REMEMBERING ADAM SMITH EDITORIAL PAGE APRIL 6 MATCHES MY OWN I THINK IT IS LIKE A GREAT MUSICAL WORK IF YOU PAY ATTENTION YOU CAN LEARN SOMETHING NEW EACH TIME YOU RETURN I BELIEVE HE IS RIGHT THAT THOSE HE IDENTIFIES AS THE CONSERVATIVELY POLITICALLY CORRECT PROBABLY HAVE NOT READ WHAT SMITH WROTE SIMILAR STATEMENTS COULD BE MADE ABOUT MANY SELFPROCLAIMED MARXISTS WHICH MAY BE WHY TOWARD THE END OF HIS LIFE MARX DECLARED HE WAS NOT A MARXIST MR STEIN WAS ALSO CORRECT IN POINTING OUT THAT SMITH ALLOWS EXCEPTIONS TO HIS GENERALIZATION THAT GOVERNMENT SHOULD STAY OUT OF THE ECONOMY HOWEVER SMITH COULD ALSO BE UNEQUIVOCAL IN HIS OPPOSITION TO GOVERNMENT INVOLVEMENT FOR EXAMPLE IN WEALTH OF NATIONS HE EXPLICITLY OPPOSED ALLOWING THE GOVERNMENT TO GRANT INCORPORATION PRIVILEGES PUBLICLY HE PUT HIS CONSIDERABLE REPUTATION BEHIND A LOSING POLITICAL FIGHT AGAINST THEIR EXTENSION TO BUSINESS HE SAW INCORPORATION AS A THREAT TO THE ECONOMIC SYSTEM THAT HE CONSTRUCTED TO BE RESPONSIVE TO OUR INTERESTS RATHER THAN TO THOSE OF BUSINESSMEN OR POLITICIANS MAYBE HE WAS RIGHT MR STEIN NOW SHOULD WRITE A FOLLOWUP ARTICLE ON DAVID RICARDO A MINORITY OF THE ECONOMICS PROFESSION INCLUDING ME CONSIDERS RICARDO TO BE THE GREATER OF THE TWO NOT ONLY DID HE EXPAND SMITH'S CONCEPT OF WEALTH TO INCLUDE A DISCUSSION OF INCOME BUT HE ALSO GAVE US THE THEORY OF COMPARATIVE ADVANTAGE RICARDO'S PROSE IS EVEN MORE CAPTIVATING THAN SMITH'S AND HE SAYS IT ALL IN UNDER 300 PAGES CONSERVATIVELY POLITICALLY CORRECT ECONOMISTS OUGHT TO START WEARING RICARDO NECKTIES 9404290114 940429 RETAILING SUNGLASSES CRAZE TURNS EVERYBODY INTO A MOVIE STAR BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL TO STAY IN THE SPOTLIGHT OF FASHION THIS SEASON PUT ON THOSE SHADES WE ARE SEEING PEOPLE BUY MORE PAIRS OF SUNGLASSES AND MORE EXPENSIVE ONES SAYS JACK B CHADSEY PRESIDENT AND CHIEF EXECUTIVE OF SUNGLASS HUT INTERNATIONAL INC A RETAIL CHAIN WHAT A BROAD RANGE OF MARKETERS HAVE RECOGNIZED IS THAT SUNGLASSES ARE A HIGHMARGIN BUSINESS LAST YEAR US RETAIL SALES OF NONPRESCRIPTION SUNGLASSES TOTALED ABOUT 99 MILLION PAIRS OR 212 BILLION A SALES JUMP OF MORE THAN 14 FROM 1992 ACCORDING TO INDUSTRY ESTIMATES FROM BAUSCH & LOMB INC SUNGLASSES THAT COST MORE THAN 30 REPRESENT THE FASTESTGROWING SEGMENT TO SELL SUNGLASSES TODAY MARKETERS AND RETAILERS HAVE COME UP WITH A SALES PITCH GEARED TO THE HERE AND NOW APPEAL TO THE VANITY OF AGING BABY BOOMERS WITH A FASHION MESSAGE WHILE HITTING THEM WITH WARNINGS ABOUT THE HARMFUL EFFECTS OF THE SUN'S ULTRAVIOLET RAYS THE WARNINGS COME AT A TIME WHEN THE FOOD AND DRUG ADMINISTRATION IS PUSHING FOR STRICTER STANDARDS FOR NONPRESCRIPTION SUNGLASSES THE FDA SAYS THAT SOME MANUFACTURERS OF SUNGLASSES HAVE IMPROPERLY PROMOTED THE PROTECTIVE QUALITIES OF THEIR PRODUCTS AND THAT CONSUMERS PRESENTLY HAVE NO WAY OF KNOWING HOW MUCH SUN PROTECTION A PARTICULAR PAIR OF GLASSES AFFORD TO CREATE A UNIFORM STANDARD THE FDA PLANS TO PROPOSE A REGULATION REQUIRING ALL SUNGLASSES TO HAVE LENSES THAT ALLOW IN LESS THAN 1 OF ULTRAVIOLET B RAYS LINKED TO SOME FORMS OF CATARACTS AND LESS THAN 50 OF ULTRAVIOLET A RAYS LINKED TO RETINA DAMAGE SOME MANUFACTURERS CURRENTLY FOLLOW LESS STRINGENT VOLUNTARY INDUSTRY STANDARDS FOR SUNGLASSES LABELS MEANWHILE STORES HAVE SPRUNG UP TO CASH IN ON THE FASHION TASTES AND SAFETY CONCERNS DRIVING SUNGLASSES SALES SUNGLASS HUT INTERNATIONAL HAS BECOME ONE OF THE COUNTRY'S FASTESTGROWING RETAILERS SELLING DESIGNER AND BRANDNAME SUNGLASSES AND ITS OWN LINE CALLED SUNGEAR WHICH RANGES IN PRICE FROM 60 TO 100 A PAIR THE COMPANY HAS GROWN TO 703 STORES IN AN EXPANSION BOOM THAT BEGAN IN THE EARLY '90S AND PLANS TO ADD AS MANY AS 150 NEW STORES THIS YEAR TOTES INC WHOSE UMBRELLA AND RUBBERS EMPIRE WAS BUILT ON RAINY DAYS PLANS TO DOUBLE THE NUMBER OF ITS SUNGLASS WORLD STORES TO NEARLY 100 SUNGLASS WORLD IS AN EXTREMELY PROFITABLE UNIT A TOTES SPOKESMAN SAYS ESTABLISHED RETAILERS ARE STARTING TO FOCUS ON SUNGLASSES TOO SEARS ROEBUCK & CO IS TESTING FASHIONSUNGLASSES KIOSKS CALLED SUNSPOT IN ITS STORES FOR THE FIRST TIME THIS SPRING GAP INC IS SELLING FASHION SUNGLASSES WHICH COST 10 TO 14 AND J CREW FEATURED STYLISH 48 SUNGLASSES ON THE COVER OF ITS SPRING/SUMMER CATALOG THIS YEAR EVEN FOSTERGRANTS WHICH HAD BEEN OPERATING UNDER BANKRUPTCY COURT PROTECTION IS BEING RESURRECTED IN MAY BY NEW OWNER BENSON EYECARE CORP HELPED BY A LATENIGHT TV ADVERTISING BLITZ FOSTERGRANTS WILL BE RELAUNCHED THIS SUMMER IN SUPERMARKETS DRUGSTORES AND MASSMERCHANDISE OUTLETS WITH ITS CLASSIC CELEBRITYSPOTTING SLOGAN INTACT WHO'S THAT BEHIND THOSE FOSTER GRANT'S WHILE SALES OF TRADITIONALLY STYLED SUNGLASSES LIKE THOSE FROM RAYBAN REMAIN STRONG SOME OF THE HOTTEST STYLES HAVE A RETRO FEEL FOR DESIGNER CALVIN KLEIN TWO OF THE BIGGEST SELLING STYLES THIS SPRING ARE AN OVALSHAPED METAL FRAME WHICH HAS AN OLDFASHIONED BOOKISH LOOK AND AN ALMONDSHAPED PLASTIC FRAME THAT HINTS OF OLDTIME HOLLYWOOD GLAMOUR SOME MAKERS OF SUNGLASSES ARE TURNING TO CELEBRITIES TO GIVE THEIR STYLES ADDED CACHET AT THIS YEAR'S VISION EXPO THE EYEWEAR INDUSTRY'S ANNUAL MEETING SUNGLASSES STYLES FROM SUCH GLAMOROUS FIGURES AS CHRISTIE BRINKLEY AND JOAN COLLINS WERE ON DISPLAY THEY JOIN OTHER DESIGNER SUNGLASSES FROM THE LIKES OF WYNONNA JUDD DONALD TRUMP AND STEFFI GRAF ADULTS HAVE TRADITIONALLY BEEN THE MAIN TARGET BUT CHILDREN ARE A GROWING MARKET AS PARENTS TRY TO PROTECT THEIR EYES AT AN EARLY AGE GAP HAS ADDED KIDS' SUNGLASSES TO ITS STORES THIS SPRING AND SUNGLASS HUT LAST YEAR LAUNCHED WEE BLOCKS WHICH RANGE FROM 15 TO 45 A PAIR CHILDREN'S EYES ARE MORE VULNERABLE TO THE HARMFUL EFFECTS OF ULTRAVIOLET LIGHT BECAUSE THEIR EYES ARE MORE TRANSPARENT A SUNGLASS HUT BROCHURE WARNS BUT EVEN IN AN AGE OF SAFE SUNNING THE SEXAPPEAL FACTOR STILL MOTIVATES MANY ADULT SHOPPERS BROWSING AT A SUNGLASSES COUNTER AT R H MACY & CO IN MANHATTAN SHOPPER TRACEY CHADD SAYS SHE THINKS ABOUT PROTECTION FROM ULTRAVIOLET RAYS WHEN BUYING A PAIR OF SUNGLASSES BUT LOOKS FOR GLAMOUR TOO MOVIE STARS WEAR SUNGLASSES SHE SAYS EVERYONE LOOKS COOL IN SHADES HIGHFASHION DESIGNERS HAVE STARTED CATERING TO PEOPLE LIKE MS CHADD CALVIN KLEIN WHOSE SUNGLASSES START AT 145 IN DEPARTMENT STORES AND OPTICAL SPECIALTY STORES BELIEVES SUNGLASSES ARE ONE OF THE MOST IMPORTANT FASHION ACCESSORIES YOU CAN WEAR TODAY SAYS LIZ KRITZIK A LIAISON BETWEEN CALVIN KLEIN INC AND THE WORLDWIDE DISTRIBUTOR OF HIS GLASSES MARCHON EYEWEAR INC OF MELVILLE NY HE'S EMPHASIZING THEM ON HIS MODELS BEYOND FASHION SOME SUNGLASSES ENHANCED BY TECHNOLOGICAL ADVANCES ARE BILLED AS IMPROVING PEOPLES' VISION DURING CERTAIN ACTIVITIES ONE EXAMPLE IS A NEW SERIES OF SUNGLASSES FOR DRIVING FROM RAYBAN USING CHROMAX TECHNOLOGY THE GLASSES HAVE LENSES THAT ARE FORMULATED WITH NEODYMIUM WHICH MAKER BAUSCH & LOMB SAYS IS A RARE EARTH ELEMENT THE LENS HAS SPECIAL COLORFILTERING PROPERTIES THAT ALLOW DRIVERS TO SEE IN GREATER CONTRAST THE REDS AMBERS AND GREENS OF LIGHTS SIGNALS AND SIGNS THEY SELL FOR AS MUCH AS 133 CONSUMERS TYPICALLY HAVE SEVERAL PAIRS OF SUNGLASSES TO SUIT EVERY OCCASION RECENT STUDIES SHOW THE AVERAGE ADULT MALE OWNS THREE PAIRS OF SUNGLASSES WHILE THE AVERAGE WOMAN HAS FIVE PAIRS IN A LIFETIME THE AVERAGE PERSON WHO WEARS SUNGLASSES MAY GO THROUGH BETWEEN 40 AND 50 PAIRS JIM TREADGOLD WHO RECENTLY SPENT 150 ON NEW RAYBAN SUNGLASSES TO REPLACE A PAIR HE HAD LOST IS A SUNGLASSES SELLER'S DREAM I LEAVE THEM OR BREAK THEM MR TREADGOLD SAYS BUT I KEEP BUYING NEW ONES A LONDONER SHOPPING IN NEW YORK MR TREADGOLD SAYS HE DIDN'T GIVE MUCH THOUGHT TO ULTRAVIOLETPROTECTION LEVELS WHEN SELECTING HIS NEW SHADES HE IS ON VACATION AND SUNGLASSES WERE SIMPLY A NECESSARY PURCHASE BEFORE A SWING DOWN SOUTH WE DON'T SEE THE SUN MUCH IN LONDON HE SAYS 9404290113 940429 INDONESIA FACES POLLUTION PERIL REPORT WARNS WORLD BANK SAYS POOR USE OF NATURAL RESOURCES THREATENS THE ECONOMY BY RICHARD BORSUK STAFF REPORTER OF THE WALL STREET JOURNAL JAKARTA INDONESIA INDUSTRIAL POLLUTION POSES AN IMMEDIATE THREAT TO HEALTH IN INDONESIA AND COULD BE 10 TIMES WORSE IN THE YEAR 2020 THAN NOW THE WORLD BANK WARNED A NEW REPORT FROM THE BANK ALSO CAUTIONS THAT DEGRADATION AND INEFFICIENT USE OF THE COUNTRY'S FORESTS AND OTHER RESOURCES WILL REDUCE INDONESIA'S ECONOMIC GROWTH RATE UNLESS THE PROBLEMS ARE FIRMLY ADDRESSED THE REPORT SAYS THE GOVERNMENT MUST DO MUCH MORE AND THE BUSINESS COMMUNITY MUST BEHAVE MORE RESPONSIBLY TO DEAL WITH DAUNTING ENVIRONMENTAL PROBLEMS BUT THE BANK IS UPBEAT THAT THE CHALLENGES WILL BE MET INDONESIA'S WELLESTABLISHED REPUTATION FOR DOING THE RIGHT THING' PROVIDES GROUNDS FOR OPTIMISM REGARDING THE FINAL OUTCOME IT SAYS THE BANK'S VIEWS ARE CONTAINED IN INDONESIA'S ENVIRONMENT AND DEVELOPMENT CHALLENGES FOR THE FUTURE A 206PAGE REPORT COMPLETED LAST MONTH INDONESIA IS BECOMING INCREASINGLY INDUSTRIALIZED AND URBANIZED ITS ECONOMIC GROWTH THE BANK SAYS DEPENDS ON USING ITS NATURAL RESOURCES WELL AND ON SUSTAINING CRITICAL ECOSYSTEMS INEFFICIENCIES SUCH AS POOR WASTEFUL FORESTRY PRACTICES AND THE PROSPECT OF CONTINUING DEGRADATION OF NATURAL RESOURCES CALL INTO QUESTION THE SUSTAINABILITY OF EVEN CURRENT LEVELS OF ECONOMIC ACTIVITY IN KEY SECTORS IT SAYS ALSO THE BANK SAYS POLLUTION HAS HIGH SOCIAL COSTS MAINLY BORNE BY THE POOR INDUSTRIAL POLLUTION COMBINED WITH VEHICLE EMISSIONS AND OTHER URBAN SOURCES POSES AN IMMEDIATE THREAT TO HEALTH AND HUMAN WELFARE THE REPORT NOTES GROWING CONGESTION AND POLLUTION WILL ERODE THE EFFICIENCY OF INVESTMENT REDUCE INDONESIA'S ABILITY TO ATTRACT FOREIGN INVESTMENT AND SPARK STRONG COMMUNITY RESISTANCE TO INDUSTRIAL EXPANSION IT SAYS THESE WOULD HAVE SERIOUS IMPLICATIONS FOR THE ECONOMIC GROWTH RATE WHICH WAS ABOUT 7 IN 1993 THE REPORT SAYS THAT THE GOOD NEWS IS THAT COMING LATE TO THE DEVELOPMENT PROCESS LETS INDONESIA AVOID MISTAKES MADE BY OTHER COUNTRIES BUT THERE'S A RELATIVELY NARROW OPPORTUNITY IN WHICH TO ACT THE MOST IMPORTANT LESSON IS TO PREVENT ECONOMIC DEGRADATION BEFORE IT OCCURS RATHER THAN CLEAN IT UP LATER THE BANK SAYS ALSO THE BANK CONTENDS THAT POLLUTION PREVENTION PAYS AS COMPANIES FIND WAYS TO SAVE RESOURCES AND BECOME MORE EFFICIENT WITHOUT CONTAINMENT THERE WILL BE MUCH MORE POLLUTION TO CLEAN UP LATER THE REPORT SAYS EXISTING COMPANIES MAY ONLY ACCOUNT FOR 15 OF TOTAL INDUSTRIAL OUTPUT BY THE YEAR 2010 THE REPORT PROJECTS AND BY 2020 INDUSTRIAL POLLUTION MAY BE 10 TIMES WORSE THAN AT PRESENT WHILE EMISSIONS OF LEAD AND MERCURY COULD BE 19 TIMES HIGHER ALREADY THE TOLL ON HEALTH IS HIGH THE REPORT MAKES A REASONABLY CONSERVATIVE ESTIMATE THAT 6000 LIVES A YEAR WOULD BE SAVED IN JAKARTA IF ITS AIR AND WATER QUALITY WAS SIGNIFICANTLY IMPROVED IT ALSO MAKES AN ESTIMATE THAT POLLUTION COST JAKARTA 500 MILLION IN 1990 IN MEDICAL COSTS AND LOST WAGES DUE TO ILLNESS BY THE YEAR 2018 UNDER ONE SCENARIO THE COST OF HEALTH DAMAGE TO JAKARTA COULD BE 45 BILLION MUCH OF THE REPORT IS DEVOTED TO FORESTRY PRACTICES AS INDONESIA HAS 10 OF THE WORLD'S REMAINING TROPICAL RAINFORESTS POOR LOGGING PRACTICES AND THE FAILURE OF REPLANTING EFFORTS HAVE RESULTED IN EXTENSIVE DEGRADATION IN MANY CONCESSIONS IN INDONESIA IT ALSO DEVOTES ATTENTION TO UNSAFE WATER ONE OF THE MAJOR SOURCES OF DISEASE IN INDONESIA EVEN PIPED WATER IS CONTAMINATED THE REPORT SAYS THE BANK EXPRESSES OPTIMISM THAT INDONESIAN POLICY MAKERS CAN CLOSE THE GAP BETWEEN WHAT IS BEING DONE AND WHAT NEEDS TO BE DONE IT ASSERTS THEY HAVE BEEN ABLE TO MAKE MAJOR ECONOMIC REFORMS IN THE FACE OF STRONGLY ENTRENCHED VESTED INTERESTS WHAT THE BANK CALLS INSTITUTIONAL SHORTCOMINGS ARE THE MOST SERIOUS IMPEDIMENT TO SOUND ENVIRONMENTAL MANAGEMENT IN INDONESIA TODAY THE REPORT SAYS THAT TRADITIONAL CENTRALGOVERNMENT PLANNING IS ILLSUITED FOR DEALING WITH LOCAL ENVIRONMENTAL ISSUES THE GOVERNMENT IS ALSO HAMPERED BY A SHORTAGE OF CRITICAL SKILLS THE BANK SAYS SUBSTANTIAL PROGRESS WILL TAKE A GENERATION OR MORE BUT SOME PROBLEMS CAN'T WAIT IT ADDS IN TOO MANY COUNTRIES THE REPORT NOTES IT TAKES A CATASTROPHE TO SPARK ACTION INDONESIA HASN'T YET EXPERIENCED SUCH AN EVENT BUT MANY OF THE INGREDIENTS ARE OR SOON WILL BE IN PLACE THE BANK SAYS 9404290112 940429 CREDIT MARKETS BOND PRICES FALL SHARPLY ON DATA JUMPS IN MEASURES OF INFLATION FOUND IN REPORT ON GDP BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE LATEST CROP OF GOVERNMENT DATA CLOBBERED THE BOND MARKET EVEN THOUGH IT SHOWED AN ECONOMY GROWING MORE SLOWLY THAN MANY ECONOMISTS BELIEVED THE PRICE OF THE 30YEAR TREASURY BOND DROPPED 1 3/4 POINTS OR 1750 FOR A BOND WITH A 1000 FACE VALUE TO 87 21/32 LATE YESTERDAY THE YIELD ROSE TO 726 FROM 71 TUESDAY BOND PEOPLE ARE PERVERSE SAID JANE TEDDER SENIOR PORTFOLIO MANAGER AT SECURITY MANAGEMENT CO A DIVISION OF SECURITY BENEFIT GROUP IN TOPEKA KAN WE NEVER REACT IN THE WAY PEOPLE EXPECT WHEN THE COMMERCE DEPARTMENT REPORTED THAT THE GROSS DOMESTIC PRODUCT GREW AT A 26 ANNUALIZED RATE IN THE FIRST QUARTER EARLY YESTERDAY BOND INVESTORS WERE SUPPOSED TO BE PLEASED THE RATE WAS BELOW THE PREDICTIONS OF MANY ECONOMISTS WHO WERE LOOKING FOR GDP GROWTH OF 3 OR HIGHER THE GDP NUMBER WAS LOWER THAN EXPECTED AND LOOKED ATTRACTIVE ON THE FACE OF IT SAID MS TEDDER BUT UPON CLOSER SCRUTINY THE BONDMARKET CYNICS FOUND IN THE REPORT SOME NUGGETS OF BAD NEWS JUMPS IN TWO INFLATION MEASURES INFLATION ERODES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN ADDING TO THE WOES OF THE BOND MARKET WAS A 2758 BILLION FLOOD OF ONEYEAR BILLS AND FIVEYEAR NOTES SOLD BY THE TREASURY THE TREASURY AUCTIONS MET WITH TEPID DEMAND AND THE WAVE OF NEW SUPPLY PUSHED BOND PRICES EVEN LOWER AS DEALERS SCRAMBLED TO FIND BUYERS FOR THE NEW SECURITIES MUCH OF YESTERDAY'S SELLING WAS DONE BY SHORTTERM TRADERS LOOKING TO CASH IN ON THE PAST WEEK'S BONDPRICE RALLY ACCORDING TO MEAD L BRIGGS HEAD OF RISK MANAGEMENT AT DEUTSCHE BANK GOVERNMENT SECURITIES INC IT WAS HOTTRADING ACCOUNTS HE SAID IN THE FOURTH QUARTER OF LAST YEAR GDP GREW AT A 7 ANNUALIZED RATE AS RECENTLY AS TWO WEEKS AGO MANY WALL STREET ECONOMISTS WERE ESTIMATING A GROWTH RATE OF 4 OR HIGHER FOR THE FIRST QUARTER OF THIS YEAR LAST WEEK MANY ECONOMISTS PUSHED DOWN THEIR ESTIMATES FOR FIRSTQUARTER GDP GROWTH AND GAVE SHORTTERM TRADERS REASON TO BET THAT THE BOND MARKET WOULD RALLY IN THE DAYS LEADING TO THE GDP REPORT WHICH IS WHAT HAPPENED THE ECONOMISTS WERE REACTING TO A REPORT LAST WEEK SHOWING THE LARGEST US TRADE DEFICIT IN MORE THAN SIX YEARS BUT WHEN THESE SPECULATIVE PLAYERS TRIED TO SELL THEIR HOLDINGS AFTER THE GDP REPORT CAME OUT YESTERDAY THERE WERE NO BUYERS BECAUSE MANY INVESTORS DIDN'T BELIEVE THE REPORT'S MESSAGE SAID MR BRIGGS MANY INVESTORS REMAIN CONVINCED THAT ECONOMIC GROWTH IS STILL ROBUST SO THE MARKET SANK BENEATH THE SPECULATORS THINGS WORSENED WHEN THE TREASURY SOLD ITS LOAD OF ONEYEAR BILLS AND FIVEYEAR NOTES PRIMARY DEALERS HAD TO MARK DOWN THE PRICES OF THE SECURITIES AFTER THE AUCTIONS TO FIND BUYERS THE GDP REPORT IS STRONGER THAN IT LOOKS SAID MR BRIGGS ONE THING POINTED TO BY MARKET PLAYERS WAS A JUMP IN TWO MEASURES OF INFLATION IN THE GDP REPORT THE FIXEDWEIGHT PRICE DEFLATOR A MEASURE OF PRICE CHANGES QUARTERTOQUARTER FOR A FIXED BASKET OF GOODS ROSE AT A 29 ANNUALIZED RATE COMPARED WITH 23 IN THE FOURTH QUARTER AND THE IMPLICIT PRICE DEFLATOR A MEASURE OF PRICE CHANGES FOR A VARYING BASKET OF GOODS ROSE AT A 26 ANNUAL RATE COMPARED WITH A 13 RATE IN THE FOURTH QUARTER THIS RATE IS THE HIGHEST SINCE THE 36 RATE REACHED IN THE FIRST QUARTER OF 1993 THE IMPLICIT PRICE DEFLATOR IN PARTICULAR IS AN IMPORTANT INFLATION MEASURE SAYS DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES BECAUSE IT IS THE ONLY PRICE INDEX THAT ACCOUNTS FOR SUBSTITUTIONS BY CONSUMERS IN SEARCH OF LOWERPRICED GOODS ON TAKING A SECOND LOOK AT THE GDP DATA BOND INVESTORS DECIDED THE FIGURES UNDERSTATED THE STRENGTH OF THE ECONOMY WEATHER AND OTHER DISTORTIONS DEPRESSED GROWTH THEY ARGUED THEY POINTED TO OTHER DATA RELEASED YESTERDAY THAT SUGGESTED THE ECONOMY CONTINUES TO GROW AT A HEALTHY CLIP DURABLEGOODS ORDERS FOR EXAMPLE ROSE 04 DURING MARCH AND INITIAL UNEMPLOYMENT CLAIMS PLUNGED 31000 FOR THE WEEK ENDED APRIL 23 THE GDP REPORT CLEARLY UNDERSTATES THE UNDERLYING STRENGTH OF THE ECONOMY AND THE CLAIMS AND DURABLES DATA UNDERSCORED THAT SAID DANA JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO CAPITAL MARKETS YESTERDAY'S ROUT ERASED THE GAINS THAT THE BOND MARKET HAD POSTED DURING THE PAST WEEK AND TOOK PRICES HALFWAY BACK TO THE LOWS SEEN TWO WEEKS AGO THE PREVAILING VIEW WAS THAT THE UPWARD TREND IN INTEREST RATES REMAINS INTACT IT'S HARD TO MAKE ANY CASE THAT THE BOND MARKET IS GOING TO START A NEW BULLISH TREND IF THE ECONOMY IS DOING OKAY AND THE FEDERAL RESERVE IS STILL GOING TO RAISE INTEREST RATES FURTHER SAID FRED LEINER MARKET STRATEGIST AT CONTINENTAL BANK BUT THIS MAY NOT MEAN AN IMMINENT FURTHER DROP IN PRICES SOME SAID THE MARKET MAY HAVE JUST TAKEN A VIOLENT FALL FROM THE TOP OF BROAD TRADING RANGES TOWARD THE MIDDLE OF THOSE RANGES WALL STREET WAS CLEARLY CAUGHT OFFSIDES ESPECIALLY BY THE LACK OF INVESTOR INTEREST IN THE TREASURY'S 11 BILLION FIVEYEAR NOTE AUCTION WHILE TUESDAY'S 17 BILLION TWOYEARNOTE SALE DREW SOME BUYING BY SMALLINVESTOR ACCOUNTS MOST OF THAT AUCTION ENDED UP IN DEALER HANDS BOND MARKETS WERE CLOSED WEDNESDAY FOR THE FUNERAL OF FORMER PRESIDENT RICHARD M NIXON BY THE TIME THURSDAY'S AUCTION ROLLED AROUND THE BOND MARKET WAS TRADING SO POORLY THAT VERY FEW DEALERS WERE WILLING TO BID AGGRESSIVELY ON NEW SECURITIES PUSHING YIELDS TO THE UPPER END OF THE MARKET'S EXPECTED RANGE A MAJOR PART OF THE PROBLEM FOR DEALERS WAS THAT AHEAD OF AN AUCTION THEY TYPICALLY MAKE ROOM FOR NEW SUPPLY BY SELLING SECURITIES SHORT IN ANTICIPATION OF BUYING THEM BACK AT THE AUCTION BUT THE RALLY EARLIER IN THE WEEK HAD CLEARED OUT MOST OF THE SHORTS AND THERE WASN'T ENOUGH TIME FOR THE DEALER COMMUNITY TO PROPERLY POSITION ITSELF FOLLOWING THE GDP REPORT A TRADER TAKES A SHORT POSITION BY SELLING A BORROWED SECURITY IN HOPES OF BUYING IT BACK AT A LOWER PRICE AND POCKETING THE DIFFERENCE IN THE END THE TREASURY AWARDED THE FIVEYEAR NOTES AT A YIELD OF 660 WELL ABOVE MARKET EXPECTATIONS THE COUPON WAS SET AT 6 1/2 BY THE CLOSE OF TRADING THE WHENISSUED YIELD ON THE FIVEYEAR NOTE STOOD AT 663 A SIGN OF WEAKENING DEMAND IN COMPARISON AT ONE POINT THURSDAY MORNING THE YIELD ON THE WHENISSUED FIVEYEAR NOTE REACHED 64 DEMAND AT THE TREASURY'S AUCTION OF 1658 BILLION OF ONEYEAR BILLS WAS ALSO WEAK ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED MAY 2 AND MATURE APRIL 30 1999 RJR NABISCO HOLDINGS CORP SOLD 1625 BILLION OF CONVERTIBLE PREFERRED STOCK YESTERDAY BUT THE DEAL CAN'T BE OFFICIALLY COMPLETED UNTIL IT RECEIVES SECURITIES AND EXCHANGE COMMISSION APPROVAL RJR WAS ABLE TO COMPLETE ITS DEAL AS TREASURY PRICES PLUNGED BECAUSE INVESTORS ARE VIEWING THE TOBACCO INDUSTRY MORE FAVORABLY AMID THE PLANNED ACQUISITION OF AMERICAN BRANDS INC'S TOBACCO BUSINESS BY BA T INDUSTRIES THE ACQUISITION PRICE WAS HIGHER THAN EXPECTED AND THAT LED MANY MARKET PARTICIPANTS TO BELIEVE THAT US TOBACCO COMPANIES WERE BEING UNDERVALUED TRADERS SAID BECAUSE OF THE TOBACCO INDUSTRY'S IMPROVING IMAGE YIELD SPREADS OVER TREASURYS FOR INTERMEDIATETERM RJR BONDS NARROWED BY ABOUT 015 PERCENTAGE POINT YESTERDAY TRADERS SAID THE BONDS ALSO IMPROVED BECAUSE RJR'S PREFERRED OFFERING SHOWED THAT THE COMPANY WAS ABLE TO ACCESS THE PUBLIC MARKETS ONE TRADER SAID RJR SOLD 250 MILLION OF SERIES C DEPOSITORY SHARES WHICH EACH REPRESENT 1/10TH SHARE OF SERIES C CONVERTIBLE PREFERRED STOCK THE PREFERRED STOCK WAS PRICED AT 650 TO YIELD 925 ACCORDING TO MCM CORPORATEWATCH THE TERMS ON THE DEAL WERE CHANGED SLIGHTLY THE COMPANY ORIGINALLY WAS SLATED TO SELL 300 MILLION SHARES AND THE EXPECTED YIELD WAS ORIGINALLY 825 TO 875 RATED BA3 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEBPLUS BY STANDARD & POOR'S RATINGS GROUP THE PREFERRED STOCK WAS SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY OFFICIALS AT MORGAN STANLEY WOULDN'T COMMENT ON THE DEAL LATE YESTERDAY HEALTHTRUSTTHE HOSPITAL CO SOLD JUNK BONDS HEALTHTRUST SOLD 200 MILLION OF 10YEAR SUBORDINATED NOTES AT PAR TO YIELD 1025 FOR A SPREAD OF 325 PERCENTAGE POINTS ABOVE TREASURYS SAID SYNDICATE OFFICIALS THE BONDS WERE TO BE SOLD FOLLOWING THE COMPANY'S SALE YESTERDAY OF MORE THAN 62 MILLION COMMON SHARES THROUGH UNDERWRITERS LED BY MERRILL LYNCH HEALTHTRUST A NASHVILLE TENNBASED HOSPITAL CHAIN IS ACQUIRING EPIC HOLDINGS INC WHICH OWNS AND OPERATES 34 ACUTECARE HOSPITALS IN 10 STATES IN A TRANSACTION VALUED AT ABOUT 1 BILLION THE WEAK RECEPTION FOR THE TREASURY DEPARTMENT'S 11 BILLION OFFERING OF FIVEYEAR NOTES UNDERCUT US GOVERNMENT BONDS AND ALSO TOOK A TOLL ON TAXEXEMPT ISSUES BUT WHILE MUNIS FELL HARD THIS SESSION TRADING WASN'T HEAVY AND NOT MANY PRICES WERE LISTED ON MUNIQUOTE SCREENS TRADERS SAY THIS SESSION'S PLUNGE PUT AN ABRUPT END TO A SERIES OF STRONG PERFORMANCES HELPED BY AN ISSUANCE SLOWDOWN THAT HAS PARED SUPPLY MUNIS MANAGED TO REBOUND HEARTILY IN RECENT SESSIONS AND REGAIN SOME OF WHAT WAS LOST DURING THEIR PLUNGE IN FEBRUARY AND MARCH ALTHOUGH CONTINUED VOLATILE TRADING IS LIKELY IN THE NEAR TERM SOME MUNI SPECIALISTS SAY THE SUPPLY SITUATION SHOULD CONTINUE TO GIVE THE MARKET UNDERPINNING MUNIS ARE IN EXCELLENT EXCELLENT TECHNICAL SHAPE BECAUSE SUPPLY IS LIMITED SAYS RICHARD VISCONTI MANAGER OF MUNI UNDERWRITING AND TRADING AT WR LAZARD LAIDLAW & MEAD SECURITIES PRICES OF MORTGAGEBACKED SECURITIES SUFFERED WITH TREASURYS THOUGH THE DECLINES WEREN'T AS STEEP FOR MOST SECTORS NONETHELESS MOST BUYERS CONSIDER VAST PORTIONS OF THE MORTGAGE MARKET OFF LIMITS FOR THE TIME BEING WHICH IS CAUSING THE PRICES OF BONDS TO SUBSTANTIALLY WEAKEN THE CONTINUING TREND IS FOR INVESTORS TO SHUN ANY TYPE OF MORTGAGE DERIVATIVE INCLUDING CLASSES OF REALESTATE MORTGAGEINVESTMENT CONDUITS IN FAVOR OF PURCHASING PASSTHROUGHS THE MOST ABUNDANT MORTGAGE SECURITIES A SMATTERING OF NEW REMICS HAVE BEEN ISSUED RECENTLY WITH NO NEW ISSUES ANNOUNCED THIS WEEK MANY BUYERS WHO SAY PRICES OF CERTAIN MORTGAGE DERIVATIVES HAVE REACHED LEVELS THAT ARE CHEAP ENOUGH TO DESERVE ANOTHER LOOK FACE PROHIBITIONS FROM THEIR BOARDS WHO ARE FEARFUL OF ANYTHING CALLED A MORTGAGE DERIVATIVE MEANWHILE GINNIE MAE 8S FOR MAY DELIVERY WERE DOWN 23/32 AT 99 26/32 FREDDIE MAC GOLD 8S FOR MAY WERE DOWN 22/32 AT 100 6/32 FANNIE MAE 8S FOR MAY WERE DOWN 22/32 AT 100 1/32 AND THE TREASURY'S 5 7/8 10YEAR NOTE WAS DOWN 1 3/32 AT 92 5/32 THOMAS D LAURICELLA AND SARAH BOWEN CONTRIBUTED TO THIS ARTICLE 9404290111 940429 LEISURE & ARTS ON SPORTS BIG BATS A POUTY OLYMPIAN SALARY CAP BY FREDERICK C KLEIN BAD THINGS ARE SUPPOSED TO COME IN THREES AND SO DO THE EXAMPLES NEEDED TO FLESH OUT A NEWSPAPER COLUMN I DON'T KNOW IF THERE'S A CONNECTION I DO KNOW THAT SOME CURIOUS THINGS HAVE BUBBLED TO THE TOP OF THE SPORTS POT IN RECENT DAYS BASEBALLS ARE FLYING A 1992 OLYMPIC GOLDMEDAL WINNER IS SIGHING AND THE SALARY OUTLOOKS OF SOME NATIONAL FOOTBALL LEAGUE STARS ARE DYING THAT ADDS UP TO THREE DOESN'T IT CONCLUSIONJUMPERS CONCLUDED THAT THE BASEBALL HAS BEEN JUICED TO GIVE MORE BANG TO THE BASH THAT'S ALWAYS THE FIRST EXPLANATION WHEN THE LINES ON THE HITTING CHARTS RISE SHARPLY AS THEY DO FROM TIME TO TIME OFFICIAL DENIALS QUICKLY FOLLOWED ALSO AS USUAL THERE ARE ALTERNATIVE EXPLANATIONS APRIL WEATHER HAS BEEN UNUSUALLY WARM IN MANY PLACES PRODUCING MUSCLELOOSENING TEMPERATURES AND HITTERFRIENDLY WESTERLY BREEZES ALL THE IRONPUMPING BALLPLAYERS HAVE BEEN DOING MIGHT BE PAYING OFF LAST SEASON'S TWOTEAM NATIONAL LEAGUE EXPANSION WHICH ADDED 20 OR SO PITCHERS' JOBS IN THE MAJORS HAS THINNED THE TALENT IN THE GAME'S MOST IMPORTANT POSITION THIS TIME THE OBVIOUS ANSWER APPEARS TO BE THE LIKELY ONE THAT BASEBALLS ARE BEING JUICED TO CREATE THE RUNS THAT THE MOGULS BELIEVE PUT FANNIES IN THE SEATS SUBTLE FACTORS DO NOT ACCOUNT FOR A 43 INCREASE IN HOME RUNS BUT WHAT I ASK IS SO TERRIBLE ABOUT THAT PROFESSIONAL FOOTBALL IS FOREVER TINKERING WITH ITS PROCEDURES IN ORDER TO SATISFY ITS FANS' SCORING DESIRESOFTHEMOMENT GOAL POSTS ARE WIDENED OR NARROWED FIELD HASH MARKS ARE CHANGED DEFENSIVE BACKS ARE LEASHED AND UNLEASHED THERE'LL BE A TWOPOINTCONVERSION OPTION BEGINNING NEXT SEASON COMPARED WITH THAT BASEBALL HAS BEEN THE VERY MODEL OF STABILITY FOR WHICH WE SHOULD BE GRATEFUL AND BESIDES JUICE IS GOOD FOR YOU I WATCHED ONE OF THE SHOWS AND THOUGHT THE HOSTESS'S LINE OF QUESTIONING WAS INTERESTING DID LENZI FEEL CHEATED THAT OTHER FORMER OLYMPIANS SUCH AS NANCY KERRIGAN WERE REAPING MILLIONS OF DOLLARS FROM THEIR CELEBRITY WHILE HE WAS NOT SHE ASKED AND DID HE NOW REGRET THE COUNTLESS HOURS HE'D DEVOTED TO HIS SPORT TO HIS CREDIT LENZI ANSWERED NO TO BOTH QUESTIONS BUT HE DID ALLOW THAT HE WAS PERPLEXED BY HIS PRESENT PLIGHT WHILE I WAS IN TRAINING I NEVER THOUGHT I'D BE DOING THIS HE SAID SEVERAL PERTINENT POINTS DID NOT COME OUT IN THIS INTERVIEW ONE WAS THAT LENZI'S ATHLETIC SKILLS HAD EARNED HIM A FULL SCHOLARSHIP TO INDIANA UNIVERSITY FROM WHICH HE WAS GRADUATED IN 1990 ANOTHER WAS THAT AFTER HIS COLLEGE DAYS WERE DONE HE RECEIVED REGULAR TRAINING STIPENDS FROM HIS SPORT'S GOVERNING BODY AND THE US OLYMPIC COMMITTEE A CALL TO THE USOC ALSO REVEALED THAT ON TWO OCCASIONS LENZI HAD OBTAINED JOBS THROUGH THE GROUP'S PLACEMENT PROGRAM BUT SUBSEQUENTLY LEFT THEM BOTH THAT HE HADN'T AVAILED HIMSELF OF OFFERS OF FURTHER PLACEMENT HELP AND THAT IN 1992 HE'D LOST OUT ON A 2500 OPPORTUNITY GOLD GRANT BECAUSE HE FAILED TO DO SOME ROUTINE PAPERWORK A BROADER POINT I THINK HAS TO DO WITH THE EXPECTATIONS OF PRESENTDAY ATHLETES SOMEHOW THE NOTION HAS GOTTEN AROUND THAT SUCCESS IN SPORTS PROVIDES OR SHOULD PROVIDE A MAGICAL OPEN SESAME TO THE WORLD'S GOODIES THE FACT IS THAT MOSTLY IT'S JUST A LINE IN THE RESUME ALBEIT A VERY GOOD ONE NOTICES TO THAT EFFECT SHOULD BE POSTED ON LOCKERROOM WALLS THEIR OBSTACLE IS THE NFL'S PERTEAM SALARY CAP NEW THIS YEAR IT WAS PART OF THE 1993 LABOR AGREEMENT THAT ALSO BROUGHT FREE AGENCY TO THE LEAGUE IT'S AN HONESTTOGOSH CEILING UNLIKE THE NATIONAL BASKETBALL ASSOCIATION'S WHICH LETS TEAMS PAY WHATEVER THEY NEED TO RESIGN THEIR OWN FREE AGENTS THE FOOTBALL VERSION SAVES SPENDTHRIFT TEAMS IE THE SAN FRANCISCO 49ERS FROM THEMSELVES WHILE GIVING OWNERS AN EASY OUT FROM FAN CRITICISM THAT THEY'RE NOT DOING THEIR DARNEDEST TO FIELD A WINNER FOOTBALL SALARIES GENERALLY WILL RISE FROM LAST SEASON BUT SOME VETERAN PLAYERS ARE FINDING THE PICKINGS SLIMMER MUCH THE SAME THING HAPPENED IN BASEBALL THIS YEAR AS A RESULT OF A REDUCTION IN NATIONAL TELEVISION REVENUE STARS IN THEIR PRIMES ARE STILL PULLING TOP DOLLARS IN BOTH SPORTS AND THE MANY MORE AT THE BOTTOM ARE GETTING THE CONTRACTUAL MINIMUMS PLAYERS IN THE MIDDLE ARE BEING SQUEEZED THERE'S SOME IRONY HERE FOR YEARS TEAM ATHLETES HAVE BEEN TELLING US THEY'RE REALLY ENTERTAINERS AND SHOULD BE PAID AS SUCH NOW IT LOOKS LIKE THEY'RE GOING TO BE 9404290110 940429 VIACOM AND TCI ARE SAID TO DISCUSS BROAD CABLE AND PAYTV COOPERATION BY JOHNNIE L ROBERTS AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK VIACOM INC AND TELECOMMUNICATIONS INC ARE ENGAGED IN NEGOTIATIONS THAT COULD PRODUCE BROAD TIES BETWEEN THE CABLETV PROGRAMMING GIANT AND THE POWERFUL CABLETV OPERATOR THE TALKS GROW OUT OF EFFORTS TO SETTLE A LAWSUIT BETWEEN THE TWO COMPANIES ACCORDING TO PEOPLE CLOSE TO TCI AND VIACOM THE NEGOTIATIONS NOW ENVISION BROAD COOPERATION THAT WOULD GO MUCH FURTHER THAN THE MORE LIMITED RANGE OF POSSIBLE JOINT VENTURES THE TWO WERE EARLIER REPORTED TO BE SEEKING THERE ARE A LOT OF MOVING PARTS SAID ONE INTERMEDIARY FOR THE TWO COMPANIES SEPARATELY THE JUSTICE DEPARTMENT YESTERDAY CLEARED THE WAY FOR TCI TO REACQUIRE LIBERTY MEDIA CORP THE CABLEPROGRAMMING ARM THAT IT SPUN OFF IN 1991 TO ALLAY ANTITRUST CONCERNS IN WASHINGTON THE AGENCY'S ANTITRUST DIVISION SAID THE DEAL COULD PROCEED PROVIDED THAT THE COMBINED COMPANY DOESN'T DISCRIMINATE AGAINST INDEPENDENT VIDEO PROGRAMMERS AND CABLE OPERATOR SUCH AS VIACOM AS REPORTED VIACOM IS PRESSING A MASSIVE ANTITRUST LAWSUIT AGAINST TCI ALLEGING VARIOUS SCHEMES TO MONOPOLIZE THE CABLETV INDUSTRY VIACOM FILED THE SUIT DURING THE HEIGHT OF ITS SUCCESSFUL TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INC WHEN IT FACED OFF AGAINST RIVAL BIDDER QVC INC WHICH WAS BACKED BY TCI PEOPLE CLOSE TO VIACOM AND TCI CAUTIONED YESTERDAY THAT ANY AGREEMENT IS FAR OFF AND THAT CONTACTS BETWEEN THE TWO COMPANIES ARE INFREQUENT NOT ONLY ARE THE ISSUES COMPLEX ONE EXECUTIVE NOTED BUT THE TWO SIDES HAVE TO BUILD TRUST ONE PERSON CLOSE TO TCI BLAMED VIACOM FOR THE SLOW PACE ADDING THAT VIACOM OFFICIALS ARE PREOCCUPIED WITH ABSORBING PARAMOUNT AS REPORTED EARLIER THE TALKS BETWEEN VIACOM AND TCI WERE ORIGINALLY LIMITED TO THE IDEA OF LINKING THE TWO COMPANIES' CABLETV SYSTEMS ANOTHER AIM OF THE TALKS WAS TO DEFUSE THE BITTER CONFRONTATION BETWEEN THE TWO RIVALS VIACOM IS A POWERFUL CABLETV PROGRAMMER WITH MTV NETWORKS SHOWTIME AND NICKOLEDEON TCI IS THE WORLD'S LARGEST CABLE OPERATOR THE TWO COMPANIES WOULD SAY LITTLE YESTERDAY ABOUT THE TALKS A VIACOM SPOKESMAN SAID WE HAVE BEEN IN DISCUSSIONS BUT WE HAVE NOTHING TO REPORT A TCI SPOKESMAN SAID WE CONVERSE WITH VIACOM FROM TIME TO TIME BUT DECLINED TO DISCUSS THE CONTACTS FURTHER BUT ACCORDING TO PEOPLE CLOSE TO BOTH COMPANIES VIACOM AND TCI ARE NOW MULLING BUSINESS LINKS INVOLVING SEVERAL OTHER OPERATIONS IN ADDITION TO SOME LINKING OF THEIR CABLETV SYSTEMS THE TWO ARE SAID TO BE EXPLORING TIES IN PAYTV CHANNELS BETWEEN VIACOM'S SHOWTIME AND TCI'S ENCORE AND STARZ CHANNELS LIBERTY MEDIA WHICH TCI IS REACQUIRING ALSO WANTS THE MADISON SQUARE GARDEN NETWORK SAY PEOPLE CLOSE TO THE TALKS THE NETWORK IS A REGIONAL SPORTS CHANNEL THAT IS PART OF THE MADISON SQUARE GARDEN OPERATION WHICH VIACOM ACQUIRED AS PART OF THE PARAMOUNT DEAL EVEN BEFORE VIACOM AND TCI OPENLY CLASHED THEY HAD AT VARIOUS TIMES EXPLORED DEALS INVOLVING SHOWTIME AND ENCORE TOGETHER THE TWO OPERATIONS COULD POSE A CHALLENGE TO TIME WARNER INC'S POWERFUL HOME BOX OFFICE UNIT BUT NOTHING EVER CAME OF THOSE EFFORTS IN THE PAST THE TWO COMPANIES ALSO HAVE WEIGHED COMBINING THEIR CABLE OPERATIONS IN SOME WAY VIACOM AND TCI WOULD APPEAR TO HAVE POWERFUL INCENTIVES TO END THEIR SHOWDOWN INDUSTRY OBSERVERS SAY FOR VIACOM A SETTLEMENT WOULD LIFT THE UNCERTAINTY OF HAVING ITS CORE BUSINESSES TARGETED BY THE INDUSTRY GIANT TCI FOR EXAMPLE TCI IS CONSIDERING WHETHER TO THROW ITS WEIGHT BEHIND A VENTURE BY MAJOR RECORD COMPANIES TO START A COMPETITOR TO VIACOM'S FLAGSHIP MTV NETWORK TCI HAS ALSO RECENTLY DROPPED VIACOM'S PAYTV SERVICE THE MOVIE CHANNEL FROM 15 MILLION TCI HOMES SHOWTIME SAID A TCI SPOKESMAN DENIED THAT IT TARGETED ANY PARTICULAR NETWORK IN MAKING PROGRAMMING CHANGES VIACOM IN TURN HAS PARRIED BY LAUNCHING NEW PAYTV SERVICES TO CHALLENGE TCI'S FLEDGLING ENCORE AND STARZ PAYTV SERVICES BUT ITS MOST AGGRESSIVE MOVE AGAINST TCI TO DATE HAS BEEN THE ANTITRUST LAWSUIT THE LAWSUIT FILED IN FEDERAL DISTRICT COURT IN MANHATTAN HAS PROVED TROUBLESOME FOR THE CABLETV GIANT FEDERAL ANTITRUST INVESTIGATORS FOR EXAMPLE BEGAN AN INVESTIGATION BASED ON ONE ALLEGATION FIRST LEVELED BY VIACOM IN ITS SUIT THAT TCI WAS CONSPIRING WITH CABLETV SUPPLIER GENERAL INSTRUMENT CORP TO MONOPOLIZE CABLEINDUSTRY TECHNOLOGY TCI HAS SAID THE SUIT HAS NO MERIT THE JUSTICE DEPARTMENT'S APPROVAL YESTERDAY OF TCI'S REPURCHASE OF LIBERTY MEDIA HELPS BOLSTER TCI'S LEGAL DEFENSE TCI APPLAUDED THE APPROVAL AS A BOOST FOR ENTREPRENEURIAL CABLETV COMPANIES SAYING IN A STATEMENT THAT THE GOVERNMENT ACTION REPRESENTED IMPORTANT CLARIFICATION OF HOW VERTICALLY INTEGRATED CABLE COMPANIES CAN BE FREE TO OPERATE IN THE FUTURE THE DEAL DREW THE AGENCY'S SCRUTINY BECAUSE IT REUNITED THE NATION'S LARGEST CABLE OPERATOR TCI WITH LIBERTY WHICH HOLDS INTERESTS IN CABLE CHANNELS INCLUDING QVC TURNER BROADCASTING SYSTEM INC AND BLACK ENTERTAINMENT TELEVISION ONE MAIN CONCERN WAS THAT THE COMBINED COMPANY MIGHT DISCRIMINATE OR SHUT OUT RIVAL CABLE PROGRAMMERS FROM ITS SYSTEMS THE JUSTICE DEPARTMENT REVIEW WAS THE PRIMARY OBSTACLE TO COMPLETING THE LIBERTY DEAL WHICH STILL REQUIRES CERTAIN OTHER REGULATORY AND SHAREHOLDER APPROVAL A TCI SPOKESMAN YESTERDAY SAID THE TRANSACTION WOULD BE COMPLETED THIS SUMMER THE COMBINED COMPANY CAN THEN STEP UP PREVIOUSLY ANNOUNCED PLANS TO RESTRUCTURE INTO FOUR OPERATING DIVISIONS CABLE AND TELECOMMUNICATIONS PROGRAMMING INTERNATIONAL CABLE OPERATIONS AND VENTURE CAPITAL ANALYSTS SPECULATE THAT THE DIVISIONS COULD THEN BE SPUN OFF VIVECA NOVAK CONTRIBUTED TO THIS REPORT 9404290109 940429 MUTUAL FUNDS INVESTORS RUSH FOR THE EXITS AT BOND FUNDS BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL MUTUALFUND INVESTORS PULLED 77 BILLION OUT OF BOND FUNDS IN MARCH FOR THE HEAVIEST MONTHLY WITHDRAWAL SINCE OCTOBER 1987 AND THE OUTFLOWS APPEAR TO BE CONTINUING STOCK FUNDS ARE STILL PULLING IN NEW MONEY BUT AT A SLOWING RATE ACCORDING TO MONTHLY DATA FROM THE INVESTMENT COMPANY INSTITUTE IT WAS THE FIRST TIME SINCE APRIL 1990 THAT INVESTORS TOOK MORE CASH OUT OF BOND FUNDS THAN THEY PUT BACK IN AND THE MARCH EXIT FROM BOND FUNDS WAS THE LARGEST SINCE 87 BILLION CAME OUT IN OCTOBER 1987 WHEN THE STOCK MARKET CRASHED ACCORDING TO THE MUTUALFUND TRADE GROUP AND INVESTORS ARE CONTINUING TO PULL MONEY OUT OF BOND FUNDS IN APRIL ACCORDING TO FUND EXECUTIVES THERE IS NOTHING IN OUR NUMBERS TO SUGGEST THAT INVESTORS HAVE TURNED THE CORNER IN BONDS SAYS NEAL LITVACK AN EXECUTIVE VICE PRESIDENT AT FIDELITY INVESTMENTS THE LARGEST FUND GROUP IN THE US STOCK FUNDS DREW IN 67 BILLION IN CASH IN MARCH LESS THAN HALF THE 144 BILLION THEY RECEIVED IN FEBRUARY FOR BOND AND STOCK FUNDS INVESTORS CONTINUED TO PUT NEW MONEY INTO MUTUAL FUNDS IN MARCH BUT REDEMPTIONS SURGED IN RESPONSE TO TOUGH TIMES IN THE STOCK AND BOND MARKETS THE DATA FOR MARCH INCLUDE NEW SALES OF FUNDS NET OF EXCHANGES AMONG FUNDS AND REDEMPTIONS THEY EXCLUDE DIVIDENDS CASH HOLDINGS BY STOCK FUNDS FELL TO 8 OF ASSETS IN MARCH FROM 88 IN FEBRUARY CASH LEVELS DECLINED AS FUNDS PAID OFF DEPARTING SHAREHOLDERS BUT FUND MANAGERS WERE APPARENTLY BARGAIN HUNTING IN MARCH WHEN MUTUAL FUNDS BOUGHT ABOUT 14 BILLION IN STOCK STOCK FUNDS GATHERED MORE CASH IN APRIL THAN IN MARCH AT SEVERAL FUND GROUPS PUTNAM INVESTMENTS A SUBSIDIARY OF MARSH & MCLENNAN HAD HIGHER SALES OF FUNDS INVESTING IN US STOCKS IN APRIL PUTNAM IS HAVING MUCH HIGHER SALES OF SUCH FUNDS THROUGH BANKS THAN IN THE YEAREARLIER PERIOD FIDELITY WHICH HAD OUTFLOWS OF 400 MILLION FROM ITS STOCK FUNDS IN MARCH HAD 15 BILLION IN INFLOWS INTO STOCK FUNDS IN APRIL CASH FLOWS OF FUNDS INVESTING IN INTERNATIONAL STOCKS REBOUNDED AT FIDELITY AND WERE BOOMING AT SCUDDER STEVENS & CLARK ESPECIALLY IN THE LAST TWO WEEKS OF THE MONTH SAYS GAVIN QUILL SCUDDER VICE PRESIDENT FRANKLIN RESOURCES INC'S TEMPLETON FUNDS T ROWE PRICE ASSOCIATES AND NEW ENGLAND FUNDS ALSO HAD HIGHER INTERNATIONALSTOCK CASH FLOWS IN APRIL ASSET ALLOCATION FUNDS WHICH ALLOT MONEY TO BOTH STOCKS AND BONDS AS THEIR MANAGERS SEE FIT GOT BIG SUMS IN APRIL DESPITE THE BRUISING SOME OF THESE FUNDS HAVE SUFFERED THIS YEAR A NEW FUND AT PUTNAM BROUGHT IN 41 MILLION WHILE SUCH FUNDS AT FRANKLIN AND ALSO STATE STREET RESEARCH & MANAGEMENT A SUBSIDIARY OF METROPOLITAN LIFE INSURANCE CO ALSO ATTRACTED INVESTOR CASH THROUGH APRIL 26 OUTFLOWS FROM STOCK AND BOND FUNDS SOLD THROUGH DISCOUNT BROKER CHARLES SCHWAB CORP WERE SLIGHTLY HIGHER THAN INFLOWS WITH BOTH AT ABOUT 15 BILLION INVESTORS FLED BOND FUNDS ALMOST ACROSS THE BOARD IN APRIL DATA FROM AMG DATA SERVICES INC SUGGEST THAT THE FIRST WEEK OF APRIL SAW EXTREMELY LARGE OUTFLOWS FROM TAXABLEBOND FUNDS WITH ABOUT 25 BILLION LEAVING THOSE TAXABLEBOND FUNDS THAT REPORT WEEKLY DATA TO AMG BOTH TAXABLE AND TAXFREE BOND FUNDS APPEAR TO HAVE HAD BIGGER OUTFLOWS IN APRIL THAN IN MARCH ACCORDING TO AMG MANY LARGE FUND GROUPS HAD OUTFLOWS FROM BOND FUNDS IN APRIL INCLUDING FIDELITY VANGUARD PUTNAM AND FRANKLIN FRANKLIN HOWEVER SAYS ITS OUTFLOWS WERE LIGHTER IN APRIL THAN IN MARCH WHILE MANY FUND EXECUTIVES SAY DEPARTING BONDFUND MONEY SEEMS TO BE GOING INTO MONEYMARKET FUNDS THE NUMBERS FOR MARCH SUGGEST OTHERWISE INVESTORS REDEEMED 22 BILLION FROM BOND FUNDS THAT MONTH NOT INCLUDING EXCHANGES FROM ONE FUND TO ANOTHER IN THE SAME FUND GROUP BUT ASSETS OF MONEYMARKET FUNDS ROSE ONLY 31 BILLION IN MARCH HOWEVER THERE WERE DRAINS ON MONEYMARKET FUNDS THAT MAY HAVE OBSCURED SOME OF THE EXCHANGES FROM BOND FUNDS TAX PAYMENTS DRAWN FROM MONEYMARKET ACCOUNTS ARE USUALLY RISING IN MARCH ALSO INSTITUTIONAL MONEYMARKET FUNDS WHICH AREN'T OPEN TO SMALL INVESTORS HAD OUTFLOWS IN MARCH ACCORDING TO AVI NACHMANY AN ANALYST AT CONSULTING FIRM STRATEGIC INSIGHT REDEMPTIONS FROM BOND FUNDS EQUALED ABOUT 3 OF BONDFUND ASSETS COMPARED WITH ABOUT 2 OF ASSETS IN FEBRUARY WHILE BOND FUNDS PROBABLY HAD ENOUGH CASH ON HAND TO MEET THE REDEMPTIONS FUND MANAGERS HAVE ALSO BEEN SELLING BONDS TO TRY AND DEFLECT THE IMPACT OF RISING INTEREST RATES ON THEIR PORTFOLIOS BOND PRICES MOVE INVERSELY TO INTEREST RATES ACCORDING TO AMG DATA INVESTORS WERE PULLING MONEY OUT OF INVESTMENTGRADE AND BELOWINVESTMENTGRADE OR JUNK BOND FUNDS IN APRIL GOVERNMENTBOND FUNDS WHOSE HOLDINGS OF MORTGAGES HAVE SUFFERED OVER THE PAST YEAR HAVE BEEN PARTICULARLY HARDHIT BY REDEMPTIONS MUNICIPALBOND FUNDS WHICH INVESTORS TRADITIONALLY REGARD AS SAFE HAVENS HAVE ALSO BEEN HIT WITH REDEMPTIONS AS INVESTORS REACT TO SHARP DECLINES IN THESE BONDS AS WELL WE THINK ONE OF THE STRONGEST SNAPBACKS OF ALL THIS ACTIVITY IS GOING TO BE THE TAXFREE BOND AREA SAYS STEPHEN GIBSON A MANAGING DIRECTOR AT PUTNAM THERE ARE REMARKABLE RETURNS AVAILABLE IN THE MARKETPLACE IN ITS APRIL SURVEY THE UNIVERSITY OF MICHIGAN FOUND THAT 44 OF INVESTORS SAID THEY PLANNED TO BUY STOCK FUNDS DURING THE NEXT SIX MONTHS UP FROM 36 OF INVESTORS IN MARCH BUT FOR THE TIME BEING THE MAJORITY OF INVESTORS ARE STILL ON THE SIDELINES WAITING FOR THE CHURNING STOCK MARKET TO CALM DOWN SAYS FIDELITY'S MR LITVACK 9404290108 940429 TECHNOLOGY & HEALTH SCIENTIST SAYS PHILIP MORRIS SUPPRESSED HIS RESEARCH ON NICOTINE ADDICTION BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL A FORMER PHILIP MORRIS SCIENTIST SAID HIS RESEARCH WAS SUPPRESSED AND HE WAS FORCED TO LEAVE THE TOBACCO COMPANY AFTER MANAGEMENT BECAME CONCERNED THAT HIS WORK ON THE ADDICTIVE POTENTIAL OF NICOTINE WOULD POSE A LEGAL LIABILITY DR VICTOR DENOBLE A FORMER ASSOCIATE SENIOR SCIENTIST AT PHILIP MORRIS COS TESTIFIED BEFORE A CONGRESSIONAL SUBCOMMITTEE THAT HE WAS FORCED TO WITHDRAW A RESEARCH PAPER ON THE ADDICTIVE POTENTIAL OF NICOTINE LESS THAN A MONTH AFTER THE LANDMARK CIPOLLONE TOBACCO LIABILITY SUIT HAD BEEN FILED AGAINST PHILIP MORRIS AND OTHER CIGARETTE MAKERS DR DAVID A KESSLER COMMISSIONER OF THE FOOD AND DRUG ADMINISTRATION WHO IS CONDUCTING AN INVESTIGATION INTO WHETHER TOBACCO COMPANIES INTENTIONALLY KEEP THE LEVEL OF NICOTINE IN CIGARETTES AT ADDICTIVE LEVELS CALLED DR DENOBLE'S TESTIMONY CRITICALLY IMPORTANT TO OUR ONGOING INQUIRY INTO THE ROLE OF NICOTINE IN CIGARETTES THIS RESEARCH SUPRESSED BY THE COMPANY FOR A DECADE DEMONSTRATES THE COMPANY'S INTEREST IN THE PHARMACOLOGY OF NICOTINE ESPECIALLY THE EFFECTS OF NICOTINE IN THE BRAIN THE SUPPRESSION OF THE RESEARCH WAS DETAILED IN EARLIER HEARINGS ON THE TOBACCO INDUSTRY BUT IT WASN'T SUGGESTED UNTIL YESTERDAY THAT PHILIP MORRIS'S ACTIONS WERE PROMPTED BY LEGAL CONCERNS LEGAL EXPERTS SAY THAT ANY EVIDENCE THAT TOBACCO COMPANIES KNEW THAT NICOTINE WAS ADDICTIVE COULD BE AN IMPORTANT NEW WEAPON IN SUING CIGARETTE COMPANIES THE LAWYER WHO FILED THE CIPOLLONE CASE MARC Z EDELL SAID YESTERDAY THAT IF DR DENOBLE'S RESEARCH HAD BEEN PUBLISHED IT MIGHT HAVE WELL CHANGED THE ULTIMATE OUTCOME OF CIPOLLONE IT MAY HAVE CHANGED THE ENTIRE COMPLEXION OF TOBACCO LITIGATION IN THE US IN 1988 IN THE ONLY SUCH DAMAGE AWARD AGAINST A TOBACCO COMPANY A FEDERAL JURY ORDERED LIGGETT GROUP TO PAY THE CIPOLLONE HEIRS 400000 BUT THE AWARD WAS OVERTURNED AND THE SUIT WAS DROPPED IN 1992 ALSO DR DENOBLE DISPUTED TOBACCO EXECUTIVES' TESTIMONY THAT NICOTINE WAS IN CIGARETTES FOR TASTE NOTING THAT NICOTINE'S EFFECT ON THE BRAIN NOT FLAVOR WAS THE FOCUS OF HIS RESEARCH NEW YORKBASED PHILIP MORRIS DENIES THAT IT SUPPRESSED THE RESEARCH AND THAT THE RESEARCH SHOWS THAT NICOTINE IS ADDICTIVE TOBACCO EXECUTIVES ALSO STEADFASTLY DENY THAT NICOTINE IS ADDICTIVE DR DENOBLE'S TESTIMONY PROVIDED A RARE CANDID GLIMPSE INTO THE INNER WORKING OF A TOPSECRET PROJECT AT A TOBACCO COMPANY A PSYCHOLOGIST DR DENOBLE WORKED AT PHILIP MORRIS FROM 1980 TO 1984 DIRECTING A LABORATORY CHARGED WITH IDENTIFYING THE EFFECTS OF NICOTINE ON THE CENTRAL NERVOUS SYSTEM DR DENOBLE'S WORK SHOWED THAT RATS WOULD ADMINISTER NICOTINE TO THEMSELVES PUSHING A LEVER UP TO 90 TIMES IN A 24HOUR PERIOD ANIMAL SELFADMINISTRATION IS CONSIDERED A HALLMARK TEST TO SHOW WHETHER A SUBSTANCE IS ADDICTIVE DR DENOBLE SAID HIS WORK AT PHILIP MORRIS WHILE NOT PROVING THAT NICOTINE WAS ADDICTIVE INDICATED THAT IT HAD THE POTENTIAL TO BE ADDICTIVE PHILIP MORRIS'S TOP MANAGEMENT GREW CONCERNED ABOUT THE ANIMAL RESEARCH IN 1983 DR DENOBLE SAID IN JUNE 1983 AFTER BRIEFING PHILIP MORRIS MANAGEMENT IN NEW YORK ABOUT THE PROJECT DR DENOBLE SAID AN EXECUTIVE ASKED HIM WHY SHOULD I RISK A BILLIONDOLLAR INDUSTRY ON RATS PRESSING A LEVER TO GET NICOTINE THEN IN AUGUST 1983 ROSE CIPOLLONE OF NEW JERSEY SUED THREE COMPANIES INCLUDING PHILIP MORRIS SAYING THEIR CIGARETTES GAVE HER LUNG CANCER THE COMPLAINT SAID THAT CIGARETTES WERE ADDICTIVE SOON AFTER DR DENOBLE SAID HE WAS TOLD TO WITHDRAW A PAPER ON THE RAT TEST FROM A SCIENTIFIC JOURNAL HE SAID HE WAS TOLD THIS WOULD NOT LOOK GOOD WITH THE CURRENT LITIGATION IN NOVEMBER 1983 DR DENOBLE SAID HE GAVE A DEMONSTRATION OF THE RATS PUSHING A LEVER TO ADMINISTER NICOTINE TO SHEPARD POLLACK THEN PRESIDENT OF PHILIP MORRIS'S TOBACCO COMPANY AND A TOP PHILIP MORRIS LAWYER DR DENOBLE SAID THE LAWYER ASKED WHETHER A GOVERNMENT AGENCY WOULD USE THE SAME TEST TO DETERMINE WHETHER A SUBSTANCE WAS ADDICTIVE AND THE SCIENTIST ANSWERED THAT IT WAS HE WAS NOT VERY HAPPY WITH THAT DR DENOBLE SAID HE SHOOK HIS HEAD AND WALKED OFF DR DENOBLE SAID THERE WAS DISCUSSION OF MOVING THE LAB FROM RICHMOND VA TO SWITZERLAND AND MAKING THE STAFF INDEPENDENT CONTRACTORS TO DISASSOCIATE THE COMPANY FROM THE WORK FINALLY IN APRIL 1984 DR DENOBLE SAID HE WAS ORDERED TO KILL THE RATS AND CLOSE THE LAB TOLD HE COULD STAY BUT THAT HE MAY HAVE TO SWEEP THE FLOORS DR DENOBLE SAID HE CLOSED THE LAB AND LEFT HE CURRENTLY WORKS FOR THE STATE OF DELAWARE PHILIP MORRIS SHARES FELL 625 CENTS TO 53625 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9404290107 940429 POTOMAC WATCH GORE SHAKES NEWT RATTLES GATT UNROLLS BY PAUL A GIGOT ARMED WITH HIS ADAM SMITH NECKTIE JOE COBB HAS TILTED AT THE WORLD BANK AND OTHER GLOBAL BUREAUCRACIES FOR YEARS YET LAST WEEK THE REPUBLICAN ECONOMIST FOUND HIMSELF DEFENDING PRESIDENT CLINTON'S GLOBAL TRADE PACT AGAINST ATTACKS FROM A FELLOW RIGHTTHINKER NEWT GINGRICH THEIR UNLIKELY BEHINDTHESCENES SCRAPE PORTENDS ANOTHER POLITICAL PROBLEM FOR A CLINTON WHITE HOUSE THAT NEVER TAKES THE EASY ROUTE WHEN AN ORDEAL IS AVAILABLE ONLY A FEW WEEKS AGO THE LANDMARK GENERAL AGREEMENT ON TARIFFS AND TRADE GATT LOOKED LIKE A GIMME PUTT IN CONGRESS BUT A LACK OF WHITE HOUSE ATTENTION HAS LET THE TARIFFCUTTING PACT DRIFT INTO JEOPARDY FOR THIS YEAR AND MAYBE FOREVER IF MR CLINTON DOESN'T SPEND SOME POLITICAL CAPITAL I'M VERY CONCERNED SAYS GOP REP DAVID DREIER A CALIFORNIA FREETRADER WHO HELPED MR CLINTON WIN HIS NAFTA BATTLE I'M HOPING TO SEE MORE EFFORT IT SHOULDN'T BE THIS HARD ROSS PEROT IS SITTING OUT THIS FIGHT AT LEAST SO FAR WHILE UNIONS ARE APPLYING MOST OF THEIR MUSCLE TO LABOR LAW AND HEALTH CARE THOSE INTELLECTUAL COMRADES RALPH NADER AND PAT BUCHANAN ARE LOBBING SOUND BITES BUT SWAY FEW VOTES EVEN DICK GEPHARDT THE DEMOCRATS' RANKING TRADE WARRIOR HAS SUGGESTED HE'LL SUPPORT GATT MAYBE THAT'S WHY MR GINGRICH'S REBELLION CAUGHT THE WHITE HOUSE NAPPING ON NAFTA HE WAS MR CLINTON'S SAVIOR DELIVERING 132 GOP VOTES TO JUST 102 DEMOCRATS BUT SUNDAY ON NBC'S MEET THE PRESS THE DE FACTO HOUSE REPUBLICAN LEADER RAISED THE SPECTER OF LOST US SOVEREIGNTY UNDER GATT HE FRETTED ABOUT THE PACT'S PROVISION FOR A NEW WORLD TRADE ORGANIZATION WTO IN WHICH THE US COULD BE OUTVOTED BY ANTIGUA BY BOTSWANA OR BY VENEZUELA AMONG OTHER NEMESES I'M FOR WORLD TRADE SAID THE GEORGIA BULLDOG BUT I'M AGAINST WORLD GOVERNMENT WHAT MR GINGRICH DIDN'T SAY WAS THAT FIVE DAYS EARLIER HE'D HEARD A SIMILAR SPIEL FROM ROGER MILLIKEN THE LEGENDARY TEXTILE PROTECTIONIST AND PAT CHOATE MR PEROT'S TRADE GURU ON NAFTA MR GINGRICH HAD BROKEN WITH MR MILLIKEN WHO HAS BEEN A FINANCIAL SUPPORTER OF THE GEORGIAN'S POLITICAL CAUSES HAS THE HOUSE'S LEADING REPUBLICAN GONE FOR A SWIM IN THE FEVER SWAMPS MR COBB THE GOP ECONOMIST WHO'S STUDIED THE GATT TEXT SAYS YES BECAUSE THE WTO IS NO THREAT TO AMERICAN SELFRULE IT'S QUITE SILLY HE SAYS THE WTO HAS NO EXECUTIVE AUTHORITY IT'S A MECHANISM FOR SETTLING TRADE DISPUTES THE ARGUMENT IS A RED HERRING MR COBB WORKS FOR THAT FAMOUS ONEWORLD CONSPIRACY FRONT THE HERITAGE FOUNDATION HE SAYS HE'D SHUTTER BOTH THE WORLD BANK AND INTERNATIONAL MONETARY FUND IF HE COULD BUT THE WTO IS DIFFERENT THE WTO DOES HAVE STRONGER ENFORCEMENT POWERS THAN IN THE PAST BUT THAT'S EXACTLY WHAT THE US SOUGHT DURING SEVEN YEARS OF TRADE TALKS SO THAT PROTECTIONISTS WOULD HAVE TO ABIDE BY STERNER GLOBAL RULES MR GINGRICH RIGHTLY SAYS THAT POWER WILL ALWAYS TRUMP RULES BUT THE US REMAINS THE BIGGEST TRADING POWER IN THE WORLD ARE BOTSWANA AND ANTIGUA TO PICK JUST TWO MORTAL THREATS GOING TO ENDANGER THE US WITH TRADE REPRISALS IN ANY CASE SAY ADVOCATES ANY SUBSTANTIVE CHANGE IN WTO RULES COULDN'T APPLY TO THE US UNLESS CONGRESS AGREED WHERE MR GINGRICH HAS A BETTER POINT IS IN MISTRUSTING WHITE HOUSE INSTINCTS ON SUCH MATTERS AT THE GATT SIGNING TWO WEEKS AGO IN MOROCCO VICE PRESIDENT GORE SOUNDED HIS ONEWORLD WEIRDEST THE AMERICANS SHOT DOWN IN IRAQ DIED IN THE SERVICE OF THE UNITED NATIONS HE SAID BY WAY OF OFFERING PATRIOTIC CONDOLENCES THAT REMARK RAISED HACKLES IN A GOP CLOAKROOM ALREADY ALARMED BY THE SUBORDINATION OF US POLICY TO THE UN IN BOSNIA MR GORE ALSO WAXED LYRICAL ABOUT HOW THE WTO WILL SPUR GLOBAL DIALOGUE OR WORSE ON WORLD LABOR AND ENVIRONMENTAL CONTROLS IN REALITY MOST OF THE WORLD IS MORE AFRAID OF THIS GORE AGENDA THAN IS EVEN MR GINGRICH SO NONE OF IT IS GOING TO HAPPEN BUT SOMEONE MIGHT TELL THE VEEP THAT HIS RHETORIC ONLY GIVES RED MEAT TO REPUBLICANS WHO WANT AN EXCUSE TO OPPOSE GATT THE CLINTON ADMINISTRATION SEEMS TO BE MAKING THE SAME MISTAKE IT DID ON NAFTA WHICH IS TO COURT VOTES ON THE LEFT THAT IT PROBABLY CAN'T GET ANYWAY WHILE IGNORING VOTES ON THE RIGHT THAT IT NEEDS TO PREVAIL THE CLINTON WHITE HOUSE SEEMS UNABLE TO SUSTAIN A CENTRIST BIPARTISAN COALITION EVEN WHEN IT'S IN ITS OWN INTERESTS INSTEAD IT ALWAYS BUILDS FROM THE LEFT FIRST MANY HOUSE REPUBLICANS REMEMBER THAT MR CLINTON DIDN'T EVEN SINGLE THEM OUT FOR THANKS AFTER THEIR VOTES LAST TIME SO PERHAPS MR GINGRICH IS JUST ISSUING A WARNING TO THE PRESIDENT NOT TO TAKE GOP VOTES FOR GRANTED THIS TIME BUT THAT'S NO REASON TO GO FURTHER AND SCUTTLE A TRADE PACT THAT AMOUNTS TO ONE OF THE LARGEST TARIFF CUTS IN WORLD HISTORY A TARIFF CUT IS REALLY A TAX CUT WHICH IS WHAT REPUBLICANS ARE SUPPOSED TO FAVOR MR GINGRICH MIGHT EVEN USE HIS LEVERAGE TO INSIST THAT THESE TARIFF/TAX CUTS WILL SO BOOST TRADE THAT THEY'LL PRODUCE MORE NOT LESS TARIFF REVENUE FOR THE GOVERNMENT AND THUS REQUIRE NO OFFSETTING TAX HIKES MAYBE MR CLINTON WILL AGREE AND CHRISTEN IT THE GINGRICH CURVE A GOOD PRECEDENT FOR THE NEXT TAX DEBATE 9404290106 940429 REVIEW & OUTLOOK EDITORIAL IN THE PINK THE NEWS CONFERENCE INTENDED TO PUT AN END TO THE HILLARY CLINTON COMMODITY STORY WAS A STYLISTIC TRIUMPH ALL AGREED IN ITS STAGING AND HER EXPRESSED INNOCENCE THE PRODUCTION WAS A DIRECT HIT ON THE INTENDED TARGET THE CASUAL AUDIENCE OF AMERICANS WHO WANT THEIR LEADERS TO SUCCEED FREE OF HARASSMENT AND AREN'T MUCH INTERESTED IN THE FINE POINTS OF FUTURES TRADING OR WHAT HAPPENED 15 YEARS AGO BUT MORE CURIOUS MINDS WILL READ WHAT MRS CLINTON ACTUALLY SAID COMPARING IT WITH WHAT ACTUALLY WAS DONE BY HER OR FOR HER AT A GOGO SPRINGDALE ARK BROKERAGE THEY'LL FIND THAT THE BASIC QUESTIONS IN THE CASE OF HILLARY'S HUNDREDTOONE LINGER HOW AND WHY DID IT HAPPEN THE ANSWERS BEAR ON HER HONESTY AS A POLICY MAKER TODAY AND ON THE CLINTONS' POLITICAL STANDING TO DECRY THE GREED OF THE 1980S THE WHITE HOUSE HELPED CONSIDERABLY BY EARLIER RELEASING MANY OF THE DOCUMENTS WE WANTED TO SEE WHEN LAST WE VISITED THIS ISSUE ON GOOD FRIDAY THESE SHOWED NEARLY ALL OF HER TRADES WERE OVER THE COURSE OF MORE THAN ONE DAY WHICH VASTLY REDUCES THE ROOM FOR MANIPULATION INSIDE THE BROKERAGE MRS CLINTON'S ACCOUNT SPORTED A STRING OF EXCEEDINGLY GOOD CLEAN TRADES HER WIN RATE AT MORE THAN 80 WAS PHENOMENAL FOR ANY TRADER AND IT WAS ACHIEVED WITH SHORT AS WELL AS LONG POSITIONS IN A BASICALLY RISING MARKET ACCORDING TO SOME VERSIONS THIS STUNNING FORTUNE WAS ENJOYED BY OTHER FRIENDS OF THE CATTLE CROWD AT THE REFCO TRADING STABLE IN SPRINGDALE AND ELSEWHERE IT WAS A LOOSER WILDER ERA AND SOME PEOPLE GOT TAKEN ALONG FOR A HELL OF A RIDE HILLARY AT LEAST HAD THE PRUDENCE TO BAIL OUT WITH A NICE STAKE IN LIFE WHY CAN'T WE LEAVE IT AT THAT AND GET ON WITH THE AFFAIRS OF THE NATION WELL IT MIGHT HAVE BEEN EASY TO ACCEPT AN EXPLANATION LIKE THAT BUT THAT ISN'T WHAT WE GOT FROM THE WHITE HOUSE INSTEAD AFTER A SERIES OF SHIFTS WE'RE LEFT WITH THIS STORY A WATERGATE COMMITTEE ATTORNEY OUT OF YALE LAW IS INTRODUCED INGENUELIKE TO THE EXCITING WORLD OF COMMODITIES WHERE WITH ONLY 1000 TO START WITH BUT A SKILLED MENTOR NAMED JIM BLAIR TO GUIDE HER SHE PICKED HER SPOTS ABLY AND STAYED ON HER GAME UNTIL THE BIRTH OF HER CHILD CAUSED HER TO LOSE HEART FRIENDSHIP'S BOUNTY BUT NO FAVORITISM IT WAS THERE FOR ANYBODY TO GET WITH PIN MONEY NOT QUITE THERE WAS A SMART LOSER FOR EVERY SMART WINNER IN THIS MARKET WHICH ANY BRIGHT ENTRANT WOULD REALIZE THE FACT IS THAT MRS CLINTON MADE HER KILLING THROUGH THE MOST HEAVILY DISCIPLINED BROKER AT THE MOST CONTROVERSIAL INSTITUTION IN THE FINANCIAL COMMUNITY'S MOST SPECULATIVE MARKET ACCESS TO GOOD ADVICE WOULDN'T BE ENOUGH TO ENTICE MOST YUPPIES IN BUT HILLARY WAS DIFFERENT AND NO SOFT PINK SUIT AND OBLIQUEANGLE CHATTER IN THE WHITE HOUSE STATE ROOM ON A LATE FRIDAY AFTERNOON IS GOING TO CHANGE THAT THE BASIS FOR DOUBT REMAINS FOR ONE THING EVEN THE LATEST SERVING OF RECORDS HAS ONE CONSPICUOUS OMISSION THERE IS NO CONFIRMATION SLIP ELABORATING THE INITIALLY REPORTED FIRST TRADE WHEN MRS CLINTON WALKED AWAY WITH A 5300 PROFIT A DAY AFTER PUTTING DOWN HER 1000 IT NOW DEVELOPS THAT THE CHICAGO MERCANTILE EXCHANGE HAS FURTHER RECORDS PRESUMABLY GATHERED IN THE INVESTIGATION LEADING TO THE DISCIPLINE OF RED BONE AND REFCO THAT WOULD SHED FURTHER LIGHT ON THIS MATTER IT TOLD SENATOR D'AMATO IT WOULD RELEASE THESE RECORDS ONLY UNDER SUBPOENA IF THE DEMOCRATIC MAJORITY WILL AGREE TO AN INVESTIGATION SUBPOENAING THESE RECORDS IT'S LIKELY THEY WOULD ALSO SHED LIGHT ON THE TRADING BY JIM BLAIR THE TYSON FOODS ATTORNEY AND FRIEND OF HILLARY AND BILL THEORIES ABOUT HOW MR BLAIR'S LARGER POSITIONS RELATED TO MRS CLINTON'S ARE CONJECTURAL AND CONFLICTING AND COULD BE TESTED ONLY BY A LOOK AT HIS TRADING RECORDS SUCH GRIST MIGHT ADD SOME SUBSTANCE TO LAST WEEK'S GLOSS EVEN WITH THE RECORDS ALREADY RELEASED THERE IS THE MATTER OF MARGIN REQUIREMENTS SIX WEEKS AFTER HER ACCOUNT WAS OPENED A SHORT POSITION IN CATTLE WAS CLOSED OUT WITH A 17400 LOSS THAT BROUGHT HER BALANCE TO 1401 SHE HAD CASHED OUT 5000 A MONTH BEFORE SUCH A SETBACK MIGHT HAVE SPOOKED THE ORDINARY DABBLER EVEN ONE WHO THOUGHT SHE WAS PRIVY TO INSIDE KNOWLEDGE BUT THAT SAME DAY NOV 22 MRS CLINTON WAS BACK IN THE HUNT GOING LONG ON FIVE CATTLE CONTRACTS AND ADDING 60 MORE ON DEC 11 UNDER THE RULES THAT MEANT SHE NEEDED 78000 BEHIND HER POSITION YET ON THAT DATE SHE HAD 6171 IN HER ACCOUNT SHE SOLD ALL 65 THE NEXT DAY FOR 4000 PROFIT AFTER COMMISSIONS HILLARY CLINTON HAD AT LEAST TWO MARGIN CALLS ACCORDING TO HER RECORDS AND PROBABLY OTHERS BASED ON WHAT WE CAN TELL OF HER EXPOSURES WE KNOW ABOUT THE TWO BECAUSE THEY WERE IN FORCE AT THE END OF A MONTH AND WERE RECORDED ON REGULAR STATEMENTS HER MEMORY OF THESE EVENTS SEARING FOR MOST AMATEUR TRADERS IS RATHER WELL MARGINAL WHEN HER ACCOUNT DIPPED BELOW THE THRESHOLD I WOULD EITHER CLOSE OUT MY POSITION OR USE THE EQUITY THAT I HAD NOBODY EVER CALLED AND ASKED ME FOR ANYTHING THEY JUST I GUESS TOOK THE MONEY THAT I HAD IN THE ACCOUNT AND CLOSED OUT THE POSITION SHE WAS A SMALL CUSTOMER AND I DON'T THINK REFCO PAID ANY ATTENTION TO MY PARTICULAR SITUATION LIKE ALL BROKERAGES REFCO HAD FLEXIBILITY IN COVERING FOR PEOPLE THOUGH IT WAS ON THE HOOK TO A CLEARING HOUSE FOR CLIENT POSITIONS AND DID ANSWER TO THE MERC BUT LET'S LOOK AT HER ACCOUNT THE FIRST MARGIN CALL FOR APPROXIMATELY 6000 ONLY TWO WEEKS AFTER SHE OPENED APPARENTLY WENT UNANSWERED FOR SEVEN DAYS EVEN THOUGH NORMAL PRACTICE IS TO DEAL WITH SUCH A PROBLEM ALMOST IMMEDIATELY THIS EPISODE PRESUMABLY ENDED WITH THE CLOSING OUT OF 10 CATTLE CONTRACTS ON NOV 2 BUT ON NOV 8 MRS CLINTON WAS RIGHT BACK INTO A SIMILAR 10CAR SHORT POSITION WITH NO CAPITAL INFUSION INTO HER ACCOUNT MAYBE THAT MEANT NOTHING TO THE BOYS IN SPRINGDALE BUT MOST BROKERS GET A LITTLE EDGY WHEN YOU TRY IT AT THE END OF APRIL 1979 MRS CLINTON WAS UNDER MARGIN AGAIN AND APPARENTLY WAS INDULGED UNTIL MAY 4 WHEN HER 15 SHORT CATTLE CONTRACTS WERE COVERED FOR A 12900 GAIN SEE MR BROKER A LITTLE PATIENCE CAN PAY OFF THE MOST CAPTIVATING PERIOD IN THE CLINTON ACCOUNT WAS THE FLURRY OF TRADING IN JULY 1979 THE LAST BOUT OF ACTIVITY AT REFCO WITH 65 LIVECATTLE AND FEEDER CONTRACTS OUTSTANDING PLUS 50 IN AN INTRADAY TRADE MRS CLINTON AGAIN APPEARS TO HAVE BEEN UNDER MARGIN AND SHE WAS GETTING HAMMERED THE PRICE MOVEMENTS ON LIVE CATTLE ALONE HAD MORE THAN ERASED ON PAPER HER 36000 ACCOUNT BALANCE BY JULY 11 SHE CLOSED OUT THE FEEDERS FOR A 27000 LOSS ON JULY 17 MUCH MORE SLIPPAGE ON THE CATTLE AND THE 39000 IN PROFITS SHE'D ALREADY PULLED OUT FOR OTHER USES WOULD BE WIPED OUT AND THE CLINTONS WOULD BE DOWN TO THEIR SALARIES BUT SHE STAYED A FEW EXTRA DAYS THE MARKET MOVED DRAMATICALLY IN HER FAVOR AND SHE WALKED AWAY A 100000 WINNER OVERALL MRS CLINTON LEFT REFCO BEHIND FOR SOME COMPARATIVELY MINOR SPECULATING THROUGH AFFILIATES OF THE STEPHENS EMPIRE IN LITTLE ROCK THE CATTLE CRAZE SOON CRASHED DOWN ON THE SPRINGDALE CROWD MOST PEOPLE IN THE BUSINESS STRESS THE SERIOUSNESS OF A MARGIN CALL PARTICULARLY WHEN THE CUSTOMER IS OF MODEST MEANS AND EXPERIENCE MRS CLINTON'S DEFENDERS INCLUDING THE COMMISSIONED LEO MELAMED OF CHICAGO MERCANTILE EXCHANGE FAME STRESS THAT REFCO OF 197879 WAS A CASE UNTO ITSELF ULTIMATELY DRAWING AN UNPRECEDENTED FINE FOR ITS LACK OF RESTRAINT IT CARRIED MARGINS OF 200000 OR MORE FOR HUNDREDS OF CUSTOMERS MR MELAMED SAYS SHE ON OCCASION HAD MUCH LESS OF A GAP SO WHAT HILLARY HE INFERS PLAYED WITH HER WINNINGS IN JULY AND MOSTLY LET GO AFTER THAT SMART WHATEVER WAS IRREGULAR IN HER STREAK YOU COULD ASCRIBE TO THE REFCO OF THAT ERA SHE RECEIVED NO FAVORITISM BECAUSE MR BONE WAS PLAYING FAST AND LOOSE WITH ALL OF HIS ACCOUNTS WHETHER OR NOT THEY WERE HELD BY THE GOVERNOR'S WIFE BUT THE POINT MUST BE IF THIS WAS SUCH A ROGUE OUTFIT HOW COULD A YALEWATERGATE STAFF LAWYER BELIEVE THAT IN DOING BUSINESS THERE SHE WAS PLAYING BY THE RULES INDEED HOW COULD SHE THINK THAT EVEN NOW SINCE SHE HERSELF WAS COCOUNSEL ON ONE OF THE LAWSUITS AGAINST REFCO AFTER THE CATTLE CRASH AS TO THE FIRST LADY'S OVERALL SPIN ON THE FAMILY'S FINANCES SIMILARLY LET'S PUT IT THIS WAY HILLARY RODHAM WAS IN WASHINGTON ONCE BEFORE AS IT PREPARED TO IMPEACH A PRESIDENT ONE WOULD THINK SHE MIGHT HAVE LEARNED FIRSTHAND ABOUT ITS NOSY EXPECTATIONS NOW HOWEVER SHE SAYS SHE'S RESIGNEDLY TRYING TO FIND MY WAY THROUGH AN OFFTHEWALL ETHICAL INQUIRY OF HER OWN COPRESIDENCY WHEN THE KLIEG LIGHTS WENT OUT IN THE STATELY WHITE HOUSE DINING ROOM THAT ACQUIRED INGENUOUSNESS WAS JUST ONE MORE REASON WHY SOME OF US HUNGERED TO KNOW MORE 9404290105 940429 YOUR MONEY MATTERS WEEKEND REPORT HOW TO FIND GOOD STOCKS IN A DICEY MARKET BY LYNN ASINOF STAFF REPORTER OF THE WALL STREET JOURNAL LET'S DO SOME BARGAINHUNTING AFTER THE RECENT TURMOIL IN THE STOCK MARKET A LOT OF STOCKS ARE TRADING AT PRICES THAT WOULD HAVE MADE THEM LOOK LIKE STEALS JUST FOUR MONTHS AGO BUT WHETHER A STOCK REALLY IS A GOOD BUY HAS VERY LITTLE TO DO WITH WHETHER IT'S TRADING AT A LOWER PRICE THAN IT USED TO JUST LIKE USEDCAR BUYERS STOCK INVESTORS IN A DICEY MARKET NEED TO BE EXTRA CAREFUL TO KICK THE TIRES AND LOOK UNDER THE HOOD THAT MEANS YOU'VE GOT TO DO YOUR HOMEWORK START BY PICKING A FEW STOCKS THAT SEEM INTERESTING IN INDUSTRIES THAT YOU UNDERSTAND THEN LOOK AT THE NUMBERS YOU CAN FIND THE INFORMATION YOU NEED IN ANNUAL REPORTS AND COMPANY FILINGS AS WELL AS RESEARCH SERVICES SUCH AS THE VALUE LINE INVESTMENT SURVEY STANDARD & POOR'S STOCK REPORTS OR MOODY'S HANDBOOK OF COMMON STOCK THAT ARE OFTEN AVAILABLE AT PUBLIC LIBRARIES AND BROKERAGEFIRM OFFICES WHICH NUMBERS YOU START WITH DEPENDS IN LARGE PART ON WHICH OF THE TWO MAJOR INVESTMENT PHILOSOPHIES YOU FOLLOW GROWTH OR VALUE GROWTH INVESTORS BUY STOCKS WITH SUPERIOR EARNINGS GROWTH VALUE INVESTORS BUY STOCKS WHOSE PRICES ARE BEATEN DOWN RELATIVE TO EARNINGS AND OTHER FUNDAMENTALS SAY YOU TAKE THE VALUE APPROACH TO FIGURE OUT WHETHER A STOCK IS IN FACT UNDERVALUED YOU WANT LOOK AT ITS PRICE IN RELATION TO SUCH OTHER FACTORS AS EARNINGS PER SHARE DIVIDENDS AND BOOK VALUE WHICH IS A COMPANY'S ASSETS MINUS ITS LIABILITIES THE MOST COMMONLY USED VALUE GUIDE IS PROBABLY A STOCK'S PRICE/EARNINGS RATIO ITS PRICE DIVIDED BY THE COMPANY'S PERSHARE EARNINGS RIGHT NOW THE AVERAGE STOCK PRICE IS 16 TO 17 TIMES ANNUAL EARNINGS ALTHOUGH P/ES RANGE FROM SINGLE DIGITS FOR MANY BANK AND UTILITY STOCKS TO 50 OR MORE FOR SOME BIOTECH COMPANIES THE HIGHER THE P/E THE MORE AN INVESTOR IS PAYING FOR A COMPANY'S EARNINGS STREAM WHEN YOU BUY A LOW P/E STOCK YOU ALREADY HAVE SKEPTICISM BUILT IN SAYS LEWIS J ALTFEST A NEW YORK INVESTMENT ADVISER NOTING THAT MANY GOOD STOCKS HAVE LOW P/ES SIMPLY BECAUSE THEY ARE OUT OF FAVOR FOR INSTANCE DRUG COMPANIES' P/ES HAVE DROPPED SHARPLY IN THE PAST YEAR REFLECTING NERVOUSNESS OVER PRESIDENT CLINTON'S HEALTH PLAN HE SAYS THE P/E OF MERCK & CO TO NAME ONE POPULAR COMPANY HAS FALLEN TO 17 FROM AN AVERAGE OF 229 IN 1992 ANOTHER RATIO THAT VALUE INVESTORS LOOK AT IS THE PRICETOBOOK RATIO A STOCK'S PRICE DIVIDED BY THE COMPANY'S PERSHARE BOOK VALUE THIS IS GOING TO TELL YOU IF A COMPANY IS CHEAP OR NOT SAYS GUS SAUTER VICE PRESIDENT OF QUANTITATIVE EQUITIES AT VANGUARD GROUP A BIG VALLEY FORGE PA MUTUALFUND COMPANY AS WITH P/ES LOWER IS BETTER SO FAR AS VALUE INVESTORS ARE CONCERNED ONCE AGAIN THOUGH WHAT IS CHEAP IN ONE INDUSTRY MAY BE EXPENSIVE IN ANOTHER A SOFTWARE COMPANY TYPICALLY HAS A HIGHER PRICETOBOOK RATIO AS ITS MAJOR ASSET IS EXPERTISE NOT MACHINERY THUS IT CAN EASILY SELL FOR MORE THAN SEVEN TIMES BOOK VALUE BUT A CAPITALINTENSIVE STEEL COMPANY MAY SELL FOR THREE TIMES BOOK VALUE AND STILL BE EXPENSIVE IF THE COMPANY PAYS DIVIDENDS A VALUE INVESTOR WILL WANT TO LOOK AT THE DIVIDEND YIELD THE ANNUAL DIVIDEND AS A PERCENTAGE OF THE STOCK PRICE RIGHT NOW ANY DIVIDEND YIELD ABOVE 35 IS REASONABLY HIGH ALTHOUGH DIVIDEND YIELD VARIES GREATLY BY INDUSTRY BUT HOW DO YOU KNOW THE DIVIDEND WON'T BE CUT YOU CAN LOOK AT CASH FLOW WHICH SHOWS IF MORE MONEY IS COMING INTO A COMPANY THAN LEAVING IT ANOTHER MEASURE IS THE PAYOUT RATIO WHICH SHOWS HOW MUCH OF A COMPANY'S PROFITS ARE GOING TO SHAREHOLDERS VALUE LINE FOR EXAMPLE RECENTLY TAGGED ARCO CHEMICAL CO WHICH HAS A DIVIDEND YIELD OF ABOUT 55 AS RIPE FOR A DIVIDEND CUT ITS 1993 PAYOUT RATIOCOMPUTED BY DIVIDING DIVIDENDS BY EARNINGS WAS 112 MEANING THE COMPANY PAID OUT MORE IN DIVIDENDS THAN IT EARNED OF COURSE EVEN A BARGAIN STOCK IS NO BARGAIN IF THE COMPANY IS GOING TO CONTINUE TO GO SOUTH SAYS VANGUARD'S MR SAUTER SO VALUE INVESTORS COME BACK TO WHERE GROWTH INVESTORS TYPICALLY START SALES AND EARNINGS BUT WHILE A VALUE INVESTOR MAY OVERLOOK A FEW YEARS OF WEAK SALES IF A TURNAROUND IS EXPECTED A GROWTH INVESTOR TENDS TO LOOK FOR CONTINUING GROWTH THE GROWTH INVESTMENT PHILOSOPHY IS EMBRACED BY THE NATIONAL ASSOCIATION OF INVESTMENT CLUBS IT SAYS THE BEST WAY TO DOUBLE YOUR MONEY EVERY FIVE YEARS IS TO INVEST IN FASTGROWING COMPANIES SO WE WANT TO SEE THAT THEY HAVE DOUBLED THEIR SALES IN THE PAST FIVE YEARS SAYS THOMAS E O'HARA CHAIRMAN OF THE ROYAL OAK MICH GROUP AND TO MAKE SURE THOSE SALES ARE TRANSLATED INTO EARNINGS GROWTH INVESTORS LOOK AT THE GROWTH OF EARNINGS PER SHARE WALMART STORES INC FOR EXAMPLE EARNED 105 A SHARE IN 1993 AND EARNINGS HAVE GROWN AT AN ANNUAL RATE OF 305 OVER THE PAST FIVE YEARS ACCORDING TO VALUE LINE IF THE COMPANY CONTINUES AT THIS RATE ITS EARNINGS PER SHARE WOULD BE 137 IN 1994 AND 179 IN 1995 WHAT WOULD THAT MEAN FOR THE STOCK PRICE JUST PLUG THOSE 1995 ESTIMATED EARNINGS INTO THE P/E RATIO TO FIND OUT MULTIPLY THEM BY THE COMPANY'S FIVEYEAR AVERAGE HIGH AND AVERAGE LOW P/E 337 AND 208 RESPECTIVELY AND YOU'LL FIND THAT IF HISTORICAL PATTERNS CONTINUE WALMART COULD BE TRADING AT BETWEEN 3725 AND 60 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY WALMART WAS AT 2575 A SHARE UP 375 CENTS STILL IT IS RISKY BUSINESS TO RELY SOLELY ON PAST PERFORMANCE IN ESTIMATING FUTURE GROWTH SO MAKE SURE YOU CONSIDER ALTERNATIVE SCENARIOS IN THE WALMART EXAMPLE FOR INSTANCE THE SUPERCHARGED 305 AVERAGE ANNUAL GROWTH IS ALREADY SLOWING AND MANY ANALYSTS ARE LOOKING FOR FUTURE GROWTH OF UNDER 20 A YEAR YOU ARE LOOKING PURELY AT HISTORY WHEN YOU ARE LOOKING AT THE FINANCIAL DATA SAYS BRAD PERRY SENIOR PARTNER AT DAVID L BABSON CO CAMBRIDGE MASS BUT A NEW COMPETITOR A SATURATED MARKET OR A CHANGE IN GOVERNMENT REGULATIONS COULD ALL MAKE THAT HISTORY MOOT SO MAKE A LIST OF RISK FACTORS AND CALCULATE THEM INTO YOUR PROJECTIONS REGARDLESS OF WHETHER YOU TAKE THE VALUE APPROACH OR GO FOR GROWTH RUNNING THROUGH ALL THE VARIOUS RATIOS CAN BE INTIMIDATING THAT'S ONE REASON MANY INVESTORS PREFER TO LET MUTUALFUND MANAGERS MAKE THEIR STOCK PICKS BUT IF YOU'VE ALWAYS WANTED TO TRY YOUR HAND AT STOCK PICKING DON'T BE DISCOURAGED EXPERTS SAY LEARNING HOW TO DO BASIC STOCK RESEARCH JUST TAKES TIME AND LIKE RIDING A BIKE THE ONLY WAY TO LEARN IS TO DO IT YOU CAN'T JUST READ ABOUT IT SAYS MR O'HARA AN INDIVIDUAL ISN'T GOING TO LEARN UNTIL HE SITS DOWN AND REVIEWS A COMPANY 9404290104 940429 TECHNOLOGY KURZWEIL SHARES DROP ON DELAY IN REPORTING WALTHAM MASS KURZWEIL APPLIED INTELLIGENCE INC SHARES FELL 475 OR 54 TO 4 AFTER THE COMPANY SAID IT WILL DELAY REPORTING ITS FISCAL 1994 RESULTS KURZWEIL SAID THE DELAY WOULD LET MANAGEMENT AND AUDITORS REVIEW PART OF KURZWEIL'S REVENUERECOGNITION POLICIES AND PRACTICES AS WELL AS ASSESS THE COLLECTABILITY OF CERTAIN ACCOUNTS RECEIVABLE KURZWEIL SAID THE REVIEW WOULD RESULT IN A SUBSTANTIAL LOSS FOR THE YEAR ENDED JAN 31 RESULTS ARE EXPECTED TO BE REPORTED IN JUNE THE DISCLOSURE OVERSHADOWED A MAJOR PRODUCT ANNOUNCEMENT YESTERDAY KURZWEIL UNVEILED WHAT IT SAID WAS THE FIRST WINDOWS DICTATION PRODUCT KURZWEIL VOICE FOR WINDOWS THE PRODUCT EXPECTED TO RETAIL FOR 995 GIVES USERS THE ABILITY TO RUN WINDOWS AND WINDOWS APPLICATIONS BY VOICE IT AUTOMATICALLY ADAPTS TO SPEECH PATTERNS BOOSTING RECOGNITION ACCURACY THE COMPANY SAID THE PRODUCT ALLOWS VOICE INPUT FOR DICTATION ENABLING THE USER TO CREATE TEXT AND ENTER DATA SIMPLY BY SPEAKING INTO WINDOWSBASED APPLICATIONS AND NAVIGATION WHICH DRIVES THE WINDOWS OPERATING SYSTEM AND APPLICATIONS BY COMMANDS KURZWEIL SAID IT WILL BEGIN SHIPPING BY THE END OF MAY 9404290102 940429 CALIFORNIA BANKS TO START COMMUNITY LOAN PROGRAM SAN FRANCISCO A GROUP OF 52 CALIFORNIA BANKS INCLUDING THE STATE'S NINE LARGEST SAID THEY PLAN TO ESTABLISH A 100 MILLION LENDING PROGRAM FOR SMALL BUSINESSES AND COMMUNITY ECONOMIC DEVELOPMENT PROJECTS THE BANKS SAID THEY WOULD SPONSOR THE PROGRAM JOINTLY WITH THE FEDERAL RESERVE BANK OF SAN FRANCISCO AND BEGIN ACCEPTING APPLICATIONS IN EARLY 1995 THE LARGE NUMBER OF BANKS INVOLVED WILL LOWER RISK THE GROUP SAID ENABLING IT TO MAKE LOANS THAT INDIVIDUAL BANKS MIGHT NOT HANDLE OTHERWISE THE GROUP THE COMMUNITY ECONOMIC DEVELOPMENT LENDING INITIATIVE SAID IT WOULD PROVIDE LOANS FOR NEAR BANKABLE BORROWERS BUSINESSES WITH STRONG CASH FLOWS BUT LIMITED COLLATERAL OR BUSINESS EXPERIENCE AS WELL AS NONTRADITIONAL BORROWERS SUCH AS COMMUNITYBASED NONPROFIT GROUPS IN ADDITION TO THE 100 MILLION LENDING POOL THE PROGRAM WILL BE CAPITALIZED WITH 10 MILLION FROM BANKS AND NONBANKING GROUPS SUCH AS FOUNDATIONS THE GROUP SAID IT WOULD BE THE LARGEST LENDING PROGRAM OF ITS KIND IN THE US 9404290101 940429 THURSDAY'S MARKETS STOCKS SINK AMID SIGNS OF SLOW GROWTH IN ECONOMY NEW INFLATION DOLLAR WEAK BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCKS SLID AS THE TWIN SPECTERS OF SLOW GROWTH AND RENEWED INFLATION SENT INVESTORS INTO A TIZZY THE DOLLAR FELL SHARPLY THE DOW JONES INDUSTRIAL AVERAGE TUMBLED 3123 POINTS TO 366831 STANDARD & POOR'S 500STOCK INDEX SLUMPED 277 TO 44910 AND THE NASDAQ COMPOSITE INDEX LOST 252 TO 73169 WE'VE GONE FROM THE BEST OF ALL WORLDS TO THE WORST OF ALL WORLDS IN THE SCHIZOPHRENIA THAT CHARACTERIZES WALL STREET SAID MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER THE SELLOFF IN STOCKS CAME AS BOND PRICES PLUNGED AFTER THE RELEASE OF THE GOVERNMENT'S REPORT ON FIRSTQUARTER GROSS DOMESTIC REPORT THOUGH BOND TRADERS FOUND IT HARD TO BELIEVE THAT GDP GREW AT ONLY A 26 ANNUAL RATE IN THE FIRST QUARTER STOCK INVESTORS WERE MORE CONVINCED AND STARTED USING THE REPORT AS AN EXCUSE TO DUMP ECONOMICALLY SENSITIVE SHARES THE SHARP RISE IN LONGTERM INTEREST RATES BOLSTERED THEIR FEARS THAT THE ECONOMY MAY BE HEADED FOR A SLUMP BETHLEHEM STEEL DROPPED 7/8 TO 20 DEERE 1 3/8 TO 77 1/2 INGERSOLLRAND 1 TO 34 1/2 TENNECO 7/8 TO 50 7/8 CSX 1 3/8 TO 77 AND UNION PACIFIC 1 TO 57 7/8 A MORGAN STANLEY INDEX OF CYCLICAL SHARES FELL 219 POINTS TO 29187 WHILE THE INVESTMENT BANK'S BAROMETER OF CONSUMER STOCKS EASED ONLY 047 TO 19197 THE GDP NUMBERS WERE A DEFINITE DISAPPOINTMENT IN THE SENSE THAT GROWTH WASN'T AS FAST AS EXPECTED AND INFLATION WAS FASTER THAN EXPECTED SAID MR METZ INDEED INFLATION AS MEASURED BY THE GDPBASED IMPLICIT PRICE DEFLATOR ROSE AT A 26 ANNUAL RATE IN THE FIRST QUARTER UP FROM A 13 RATE IN THE FOURTH QUARTER IT WAS THE HIGHEST RATE SINCE THE 36 RECORDED IN THE 1993 FIRST QUARTER ONE OF THE REASONS INFLATION WORRIES WERE ON THE MINDS OF INVESTORS WAS THE WEAKNESS IN THE DOLLAR ANALYSTS SAID A FALLING DOLLAR MAKES IMPORTS MORE EXPENSIVE AND GIVES US COMPANIES MORE LEEWAY TO RAISE PRICES AT HOME WHAT'S MORE AS THE DOLLAR FALLS FOREIGNERS TEND TO PULL BACK FROM INVESTING IN DOLLARDENOMINATED FINANCIAL INSTRUMENTS SUCH AS BONDS THUS INCREASING THE PROSPECT THAT INTEREST RATES WILL CLIMB IT'S A REAL CONCERN TO SEE THE DOLLAR AS WEAK AS IT IS BECAUSE IT TENDS TO BE IDENTIFIED WITH UPWARD PRESSURE ON INTEREST RATES SAID RICHARD HOEY PORTFOLIO MANAGER OF DREYFUS'S 16 BILLION GROWTH & INCOME FUND HE SAID THERE IS WIDESPREAD ANXIETY THAT IF THE DOLLAR CAPITULATES AGAINST THE YEN IT WILL HAVE SEVERE REVERBERATIONS IN FINANCIAL MARKETS AT HOME AND ABROAD THE PSYCHOLOGY OF THE DOLLAR CLOSING IN ON 100 YEN IS LIKE THE SOUND OF A WATERFALL DOWN RIVER SAID MR HOEY YOU DON'T KNOW HOW BAD IT COULD BE WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 019 TO 11474 IN MAJOR MARKET ACTION STOCK PRICES DECLINED VOLUME TOTALED 3231 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 936 ISSUES ROSE AND 1275 FELL THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS AT 16623 MARKS AND 10130 YEN COMPARED WITH 16723 MARKS AND 10235 YEN WEDNESDAY 9404290100 940429 POLITICS & POLICY AMES GETS LIFE IN PRISON FOR SPYING AS PART OF PLEA DEAL TO PROTECT WIFE BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ALDRICH AMES THE CIA EMPLOYEE WHO SOLD VITAL US SECRETS TO THE RUSSIANS HAS BEEN SENTENCED TO LIFE IN PRISON AS PART OF A GUILTY PLEA INTENDED TO PROTECT HIS WIFE ROSARIO DURING A BRIEF COURT APPEARANCE US PROSECUTORS PRESENTED A STATEMENT SAYING THAT MR AMES GAVE HIS KGB HANDLERS THE NAMES OF NINE HIGHRANKING SOVIET MILITARY AND INTELLIGENCE OFFICIALS WHO WERE SECRETLY COOPERATING WITH THE US THE DISCLOSURES LED TO THE ARREST AND EXECUTIONS OF AT LEAST FOUR OF THEM INCLUDING AN UNNAMED SOVIET GENERAL THAT'S ESSENTIALLY WHAT HE DID COMMENTED HELEN FAHEY THE US ATTORNEY FOR THE EASTERN DISTRICT OF VIRGINIA HE TRADED PEOPLE'S LIVES FOR 25 MILLION SHE CALLED THE AMES CASE THE MOST DAMAGING SPY CASE IN U S HISTORY ACCORDING TO THE PROSECUTORS MR AMES REVEALED SUBSTANTIAL AMOUNTS OF TOPSECRET INFORMATION INCLUDING CIA CODES METHODS BUDGETS A LARGE NUMBER OF DOUBLEAGENT OPERATIONS LAUNCHED AGAINST MOSCOW AND WHAT THE US KNEW ABOUT DOUBLE AGENTS USED BY THE RUSSIANS AGAINST THE US AS PART OF THE MONTHLONG BARGAINING LEADING UP TO HIS GUILTY PLEA ON SPYING AND TAXEVASION CHARGES MR AMES HAS PROMISED TO TELL ALL HE KNOWS TO A FEDERAL BUREAU OF INVESTIGATION DEBRIEFING TEAM IN RETURN THE JUSTICE DEPARTMENT HAS AGREED TO RECOMMEND A LESSER SENTENCE ABOUT FOUR YEARS IN PRISON FOR MRS AMES WHOSE SENTENCING WAS DEFERRED UNTIL AUGUST MR AMES 52 YEARS OLD SPENT 31 YEARS WORKING FOR THE SPY AGENCY BEFORE HE WAS CAUGHT PARTLY BECAUSE OF HIS LAVISH LIFESTYLE HE LASHED OUT AT PROSECUTORS DURING A LENGTHY STATEMENT IN COURT SAYING THAT THEY HAD SHOWN GRATUITOUS VINDICTIVENESS AGAINST HIS WIFE ALTHOUGH HIS SPYING ON BEHALF OF THE RUSSIANS BEGAN IN 1985 MR AMES ASSERTED THAT HIS WIFE DIDN'T DISCOVER IT UNTIL 1992 AND THAT HE HAD TO BLACKMAIL HER WARNING THAT THE RUSSIANS MIGHT INJURE HER MOTHER TO KEEP HER FROM TURNING HIM IN FIRST IN EXCHANGE FOR 50000 HE GAVE THE KGB THE NAMES OF SEVERAL SOVIET AGENTS WHO PRETENDED TO BE COOPERATING WITH THE CIA BUT WERE REALLY LOYAL TO MOSCOW THEN A FEW MONTHS LATER I DID SOMETHING WHICH IS STILL NOT ENTIRELY EXPLICABLE EVEN TO ME WITHOUT PRECONDITIONS OR ANY DEMAND FOR PAYMENT I VOLUNTEERED TO THE KGB INFORMATION IDENTIFYING VIRTUALLY ALL SOVIET AGENTS OF THE CIA AND OTHER AMERICAN AND FOREIGN SERVICES KNOWN TO ME MR AMES WHO WAS GIVEN THE RUSSIAN CODE NAME KOLOKOL MEANING BELL REVEALED THAT THE TOP KGB OFFICER IN LONDON WAS COOPERATING WITH BRITISH INTELLIGENCE UNDER THE CODE NAME GT TICKLE HE ALSO FINGERED GT COWL A MOSCOWBASED KGB OFFICER WHO TOLD THE CIA HOW THE RUSSIANS USED FLOURESCENT SPY DUST TO TRACK US DIPLOMATS GT COWL WAS LATER EXECUTED MR AMES TOLD THE TIGHTLY PACKED COURTROOM THAT HE WAS SURPRISED WHEN HIS RUSSIAN HANDLERS SAID THEY HAD SET ASIDE 2 MILLION IN REPAYMENT HE BLAMED A SHIFT TO RIGHTWING POLITICS IN THE US AND THE INEFFECTUAL OPERATIONS OF CAREERIST BUREAUCRATS IN THE CIA FOR HIS DECISION TO COOPERATE WITH HIS RUSSIAN HANDLERS THE COMPLETION OF THE AMESES' PROSECUTION WILL NOW ACCELERATE A SERIES OF INVESTIGATIONS TO DETERMINE THE EXTENT OF THE DAMAGE HE CAUSED THE REASONS WHY HE REMAINED UNDETECTED FOR NINE YEARS AND WHO IF ANYONE MAY HAVE HELPED HIM WITHIN THE CIA TWO OF THE INVESTIGATIONS WILL BE MOUNTED BY THE CIA'S INSPECTOR GENERAL AND A PANEL OF OUTSIDE EXPERTS IN ADDITION BOTH THE HOUSE AND SENATE INTELLIGENCE COMMITTEES ARE PREPARING PROBES WITH THE SENATE PANEL HOPING TO CALL MR AMES AS A WITNESS WITHIN TWO OR THREE WEEKS MEANWHILE THE WHITE HOUSE IS PREPARING REFORMS AIMED AT TIGHTENING US COUNTERINTELLIGENCE EFFORTS THEY INCLUDE TWO NEW BUREAUCRATIC STRUCTURES ONE WITHIN THE CIA AND THE OTHER WITHIN THE WHITE HOUSE'S NATIONAL SECURITY COUNCIL THAT ARE BEING DESIGNED TO BETTER COORDINATE COUNTERINTELLIGENCE EFFORTS UNDER AN AGREEMENT BETWEEN THE CIA AND THE FBI BOTH WILL BE HEADED BY FBI EXPERTS PLATO CACHERIS MR AMES'S ATTORNEY SAID HIS CLIENT HAD AGREED TO FORFEIT EVERYTHING WHAT CASH REMAINS FROM HIS 25 MILLION IN PAYMENTS FROM THE RUSSIANS HIS 540000 HOUSE HIS RED JAGUAR CIA PENSION AND ANY BOOK OR MOVIE PROFITS THE CARROT THAT WAS HELD OUT MR CACHERIS EXPLAINED WAS LENIENCY FOR HIS WIFE 9404290099 940429 BELL ATLANTIC IS SAID TO PICK NETWORK TEAM MULTIMEDIA JOB IS TO GO TO AT&T AND GENERAL INSTRUMENTDSC GROUP BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AT&T CORP AND ANOTHER TEAM OF SUPPLIERS ARE IN FINAL NEGOTIATIONS TO EQUIP BELL ATLANTIC CORP'S MULTIBILLIONDOLLAR MULTIMEDIA NETWORK ACCORDING TO PEOPLE FAMILIAR WITH BELL ATLANTIC'S PLANS WHILE FINAL CONTRACTS ARE STILL BEING HAMMERED OUT BELL ATLANTIC'S CHOICE OF AT&T AND THE TEAM OF GENERAL INSTRUMENT CORP AND DSC COMMUNICATIONS CORP WOULD END ONE OF THE HOTTEST CONTESTS FOR A PHONE COMPANY'S BUSINESS IN RECENT YEARS THE INDIVIDUALS SAID THE COMPANY COULD MAKE THE ANNOUNCEMENT WITHIN TWO WEEKS BELL ATLANTIC'S NEW DIGITAL NETWORK IS SCHEDULED TO REACH EIGHT MILLION HOMES BY THE END OF THE DECADE AND IS EXPECTED TO COST AS MUCH AS 11 BILLION OVER THE NEXT FIVE YEARS THE SYSTEM COULD HELP SET A STANDARD FOR PHONE NETWORKS OF THE FUTURE THAT WILL CARRY ADVANCED VOICE DATA AND VIDEO SERVICES MORE THAN 14 SUPPLIERS SUBMITTED BIDS FOR THE PROJECT THE MOST AGRESSIVE SO FAR FOR CARRYING INTERACTIVE MULTIMEDIA SERVICES BY THE TURN OF THE CENTURY A BELL ATLANTIC SPOKESMAN SAID WE HAVE NOT MADE A FINAL SELECTION WE HAVE NOT SIGNED CONTRACTS AT&T GENERAL INSTRUMENT AND DSC DECLINED TO COMMENT ON BELL ATLANTIC'S PROJECT BUT THE INDIVIDUALS SAID BELL ATLANTIC AND THE SUPPLIERS ARE COMPLETING CONTRACTS THAT WOULD AMOUNT TO A BROAD ENDORSEMENT OF THE HYBRID NETWORK DESIGN BEING PUSHED BY AT&T'S EQUIPMENT UNIT AT&T NETWORK SYSTEMS AND THE GENERAL INSTRUMENTDSC TEAM THE LATTER COMBO JOINED FORCES IN NOVEMBER TO BUILD A RIVAL HYBRID PRODUCT THAT COMBINES HIGHCAPACITY DATA FUNCTIONS USED IN PHONE NETWORKS WHICH IS DSC'S FORTE WITH CABLE TV VIDEO TRANSMISSION FEATURES GENERAL INSTRUMENT'S AREA OF EXPERTISE IT IS UNCLEAR HOWEVER WHETHER BELL ATLANTIC'S MOVE IS A SETBACK FOR BROADBAND TECHNOLOGIES INC THE TINY RALEIGH NC COMPANY HAS BEEN PUSHING AN ALLFIBEROPTIC SYSTEM FOR DELIVERING MULTIMEDIA SERVICES TO HOME AND BUSINESS SUBSCRIBERS AND IT HAS BEEN USING BELL ATLANTIC AS ITS BIGGEST REFERENCE WITH OTHER POTENTIAL CUSTOMERS THE INDIVIDUALS SAID BELL ATLANTIC WANTS TO KEEP BROADBAND AT ITS MULTIMEDIA TABLE THE COMPANY WHICH HAS INSTALLED ITS ALLFIBER NETWORK EQUIPMENT IN THE BELL ATLANTIC NETWORK FOR VIDEO TESTS WITH CONSUMERS MAY BE A PART OF AT&T'S BID ACCORDING TO THE INDIVIDUALS AS BELL ATLANTIC'S NETWORK PROGRESSES THE PHONE COMPANY COULD USE BROADBAND'S TECHNOLOGY TO TURN ITS NETWORK INTO A FULL FIBEROPTIC SYSTEM BROADBAND OFFICIALS COULDN'T BE REACHED FOR COMMENT AN ALLFIBER SYSTEM HOWEVER WAS DEEMED TOO EXPENSIVE AND UNPROVEN BY BELL ATLANTIC NETWORK PLANNERS ACCORDING TO PEOPLE WHO HAVE SEEN THE COMPANY'S PLANS BROADBAND'S FIBER GEAR ALSO WOULDN'T CONNECT EASILY WITH EXISTING PHONE NETWORK MAINTENANCE AND MONITORING SYSTEMS A REQUIREMENT OF ANY OF THE NEW MULTIMEDIA SYSTEMS THAT ARE NOW BEING CONTEMPLATED BELL ATLANTIC FIGURED IT WAS BETTER OFF BUILDING A HYBRID SYSTEM THAT USES ROUTES OF FIBEROPTIC CABLE LASERS AND OTHER GEAR TO CONNECT ITS CENTRAL SWITCHING OFFICES TO COMPUTERIZED NEIGHBORHOOD NODES THESE NODES SEND OR RECEIVE DIGITAL TRAFFIC OR CONVENTIONAL ANALOG PHONE SIGNALS LIKE THOSE THAT PASS TODAY'S PHONE CONVERSATIONS COAXIAL CABLES SIMILAR TO THOSE USED BY CABLE TELEVISION COMPANIES WOULD CONNECT THE NEIGHBORHOOD NODES TO EACH HOME AND BUSINESS REPLACING AGING COPPER WIRES THE INDIVIDUALS SAID AT&T HAS ALREADY RECEIVED CONTRACTS FOR SUCH HYBRID NETWORKS FROM PACIFIC TELESIS GROUP'S PACIFIC BELL UNIT AND SOUTHERN NEW ENGLAND TELEPHONE CO DSC HAS ALSO BEEN A BIG WINNER IN THE BELL MARKET THE COMPANY HAS ALREADY SUPPLIED ITS NETWORK NODES CALLED LITESPAN TO FIVE OF THE SEVEN REGIONAL BELL COMPANIES THESE NODES ARE CURRENTLY CARRYING ADVANCED VOICE AND DATA SERVICES TO 25 MILLION PHONE LINES AND DSC HAS SUPPLIED A TEST VIDEO SWITCH TO BELL ATLANTIC FOR A SMALL CONSUMER VIDEO TRIAL IN NORTHERN VIRGINIA GENERAL INSTRUMENT WILL ALSO BENEFIT FROM BELL ATLANTIC'S BUSINESS ALREADY THE CABLE TV INDUSTRY'S LARGEST SUPPLIER OF TV SETTOP BOXES CABLE AND OTHER GEAR THE COMPANY HAS NOW OPENED A NEW SUPPLY CHANNEL FOR ITS EQUIPMENT IN THE HUGE BELL MARKET THE REGIONAL BELL COMPANIES ARE LAYING BOLD PLANS FOR INTERACTIVE SERVICES THAT COULD MAKE GOOD USE OF THE ADVANCED BOXES THAT GI HAS ALREADY BEEN TESTING IN A VARIETY OF CABLE TV TRIALS ACROSS THE NATION BELL ATLANTIC WHICH CALLED OFF ITS MERGER PLANS WITH CABLE GIANT TELECOMMUNICATIONS INC IN FEBRUARY MUST STILL FILL OTHER SUPPLIER SLOTS FOR ITS MULTIMEDIA SYSTEM BELL ATLANTIC STILL LACKS FIRM CONTRACTS FOR THE TELEVISION SETTOP BOXES TO BE USED BY NETWORK SUBSCRIBERS ALTHOUGH THE INDIVIDUALS SAY THE COMPANY IS LEANING TOWARD PLACING A HUGE ORDER WITH GENERAL INSTRUMENT BELL ATLANTIC ALSO HASN'T DECIDED ON THE SOFTWARE TO BACK UP THESE DEVICES AND SOME OF THE ADVANCED SWITCHING SYSTEMS THAT WILL HANDLE THE NEW TRAFFIC DSC IS LOOKING TO MAKE MAJOR INROADS HERE USING AS A REFERENCE FOR FUTURE ORDERS THE VIDEO SWITCHING GEAR IT HAS ALREADY SUPPLIED TO BELL ATLANTIC FOR A CONSUMER TRIAL IN NORTHERN VIRGINIA BUT IT WILL HAVE TO OVERCOME AT&T'S ENCUMBENT POSITION AS BELL ATLANTIC'S PRIMARY SUPPLIER OF SWITCHES 9404290098 940429 POLITICS & POLICY TRUTH LANDS IN INTENSIVE CARE UNIT AS NEW ADS SEEK TO DEMONIZE CLINTONS' HEALTHREFORM PLAN BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE BABY'S SCREAM IS ANGUISHED THE MOTHER'S VOICE DESPERATE PLEASE SHE PLEADS INTO THE PHONE AS SHE SEEKS HELP FOR HER SICK CHILD WHY DID THEY LET THE GOVERNMENT TAKE OVER SHE ASKS PLAINTIVELY I NEED MY FAMILY DOCTOR BACK THE ONLY PROBLEM WITH THE RADIO SPOT PRODUCED BY A WASHINGTONBASED GROUP CALLED AMERICANS FOR TAX REFORM IS THAT IT ISN'T TRUE NEITHER THE CLINTON HEALTHCARE BILL NOR ANY OF THE ALTERNATIVES ON CAPITOL HILL WOULD FORCE PEOPLE TO CALL FOR GOVERNMENT APPROVAL BEFORE VISITING A DOCTOR OR RUSHING TO THE HOSPITAL IT SCARES PEOPLE AND THAT IRRITATES THE DICKENS OUT OF ME SAYS DEMOCRATIC REP JIM SLATTERY A CRITICAL VOTE ON THE HOUSE ENERGY AND COMMERCE COMMITTEE WHOSE EASTERN KANSAS DISTRICT WAS A TARGET OF THE AD SUCH FEARMONGERING IS RAMPANT AS CONGRESS MOVES FORWARD ON COMPROMISE HEALTHCARE LEGISLATION THE COMPLEXITY OF THE CLINTON PROPOSAL AND THE FACT THAT THE ISSUE AFFECTS EVERY AMERICAN HAVE RESULTED IN A FLOOD OF ALARMIST PROPAGANDA THAT MAKES HARRY AND LOUISE THE HEALTHINSURANCE INDUSTRY'S FICTITIOUS CLINTON CRITICS LOOK LIKE OZZIE AND HARRIET SOME OF THE HORROR STORIES STEM FROM IDEOLOGICAL DIFFERENCES MANY OF THE GROUPS TWISTING THE FACTS ARE HARDLINE CONSERVATIVES BENT ON STOPPING ANY GOVERNMENT PRESENCE IN HEALTH CARE BUT CLEARLY THERE ARE OTHER MOTIVES AS WELL SOME GROUPS IN ISSUING DIRECTMAIL WARNINGS ABOUT HEALTHCARE REFORM ARE SOLICITING MONEY TO HELP THEIR CAUSE AMERICANS FOR TAX REFORM WHICH CLAIMS 60000 MEMBERS MAKES NO APOLOGIES FOR THE 1800GOVERNMENT AD IS IT FRIGHTENING YES DO I THINK WE OVERSTATE THE CASE NO INSISTS GROVER NORQUIST THE PRESIDENT OF THE GROUP WHICH IS PERHAPS BEST KNOWN FOR ASKING LAWMAKERS TO SIGN A PLEDGE OPPOSING ALL INCOMETAX INCREASES YET EVEN SOME OF THE TOUGHEST CRITICS OF THE CLINTON HEALTHCARE PROPOSAL UPON HEARING THE AD CONDEMN IT I THINK IT'S UNNECESSARY TO USE SCARE TACTICS SAYS THE MANHATTAN INSTITUTE'S ELIZABETH MCCAUGHEY WHOSE OWN ATTACK ON THE CLINTON PLAN IN THE NEW REPUBLIC MAGAZINE WAS DENOUNCED BY THE WHITE HOUSE AND ITS ALLIES MS MCCAUGHEY WHO DEFENDS HER CRITIQUE BY NOTING THAT IT CITES SPECIFIC PASSAGES IN THE CLINTON BILL FINDS ALL SIDES OF THE DEBATE GUILTY OF PLAYING TO PEOPLE'S EMOTIONS THAT SHE SAYS INCLUDES THE ADMINISTRATION AND ITS SUPPORTERS WHO EAGERLY RECOUNT STORIES ABOUT PEOPLE WHO LOSE THEIR HEALTH INSURANCE GET SICK AND ARE THEN FINANCIALLY WIPED OUT THAT'S A KIND OF SCARE TACTIC TOO SHE SAYS STILL SOME GROUPS HAVE TAKEN THE TERRIFYING IMAGES TO A DIFFERENT LEVEL SERVING UP WHOLLY FICTIONAL ACCOUNTS OF PEOPLE DENIED THE MOST BASIC CARE BY A HEARTLESS BUREAUCRACY CITIZENS FOR A SOUND ECONOMY A CONSERVATIVE GROUP THAT GETS ABOUT HALF OF ITS 8 MILLION BUDGET FROM CORPORATE AND FOUNDATION SPONSORS AND HALF FROM INDIVIDUALS WHO SEND IN CONTRIBUTIONS AVERAGING ABOUT 20 HAS ALSO RUN RADIO ADS IN KEY CONGRESSIONAL DISTRICTS FEATURING A DISTRAUGHT MOTHER ON THE PHONE THIS TIME SHE'S TRYING TO VISIT DR MURRAY SO HER SON'S EARACHE CAN BE TREATED YOU WILL NOT SEE DR MURRAY THE GOVERNMENT GATEKEEPER REPLIES DR JOHNSON WILL SEE YOUR SON NEXT WEEK UNDER HEALTH REFORM ALL AMERICANS AND THAT INCLUDES YOU AND YOUR SON WILL HAVE TO GO THROUGH GOVERNMENT HEALTH ALLIANCES WITH GATEKEEPERS LIKE ME WE WILL DECIDE WHO WHEN OR EVEN IF YOU NEED TO SEE A DOCTOR BRENT BAHLER OF CITIZENS FOR A SOUND ECONOMY CLAIMS THAT WHAT WE'RE PRESENTING IS A LIKELY OUTCOME IF LEGISLATION LIKE THE CLINTON BILL IS PASSED BUT THAT'S IMPOSSIBLE NONE OF THE HEALTHCARE PROPOSALS ON THE TABLE INCLUDING THE PRESIDENT'S HAS A GOVERNMENT GATEKEEPER SOME OPPONENTS OF THE CLINTON BILL WORRY THAT SUCH SPURIOUS CLAIMS COULD BACKFIRE IT BECOMES ALL TOO EASY TO FAULT ANYONE WHO HAS LEGITIMATE CRITICISM SAYS PAM BAILEY PRESIDENT OF THE HEALTHCARE LEADERSHIP COUNCIL A COALITION OF MEDICAL INDUSTRY REPRESENTATIVES THAT IS LOBBYING AGAINST THE CLINTON PLAN SOMETIMES THE FABRICATIONS ARE BORN OF REAL CONCERNS MANY EXPERTS WORRY THAT THE CLINTON BILL WITH ITS REGIONAL INSURANCEBUYING POOLS AND A NATIONAL HEALTH BOARD TO OVERSEE THE SYSTEM WOULD GIVE TOO MUCH POWER TO THE GOVERNMENT MOREOVER MANY BELIEVE THE CLINTON PLAN WOULD HASTEN THE ALREADY FASTGROWING TREND OF MANAGED CARE WHERE A PERSON'S CHOICE OF DOCTORS IS LIMITED AND PHYSICIAN GATEKEEPERS OFTEN DECIDE WHETHER A CERTAIN TREATMENT IS APPROPRIATE SOME ANALYSTS CAUTION THAT BECAUSE OF STRICT HEALTHCARE SPENDING CAPS IN THE CLINTON BILL RATIONING IS POSSIBLE THE GROUPS TAKING THE HARDEST LINE AGAINST THE CLINTON PLAN TEND TO OPPOSE THE PRESIDENT'S GOAL OF GUARANTEEING COMPREHENSIVE HEALTH COVERAGE FOR EVERY AMERICAN MANY FAVOR INSTEAD A MORE LIMITED SCHEME THAT INCLUDES TAXFREE SAVINGS ACCOUNTS FROM WHICH PEOPLE COULD PAY THEIR MEDICAL EXPENSES AMERICANS FOR TAX REFORM FOR ONE IS IN A COALITION CALLED CITIZENS AGAINST RATIONING HEALTH THAT BACKS SUCH AN APPROACH ANOTHER MEMBER IS THE UNITED SENIORS ASSOCIATION WHICH SAYS IT IS A FREEMARKET ADVOCATE FOR OLDER AMERICANS BUT WHICH WAS ACCUSED BY LAWMAKERS DURING A 1992 CONGRESSIONAL HEARING OF PREYING ON THE ELDERLY FOR THEIR MONEY UNITED SENIORS WAS FOUNDED BY CONSERVATIVE DIRECTMAIL PIONEER RICHARD VIGUERIE THOUGH HE IS NO LONGER ASSOCIATED WITH IT THE ORGANIZATION IS UNDER CRIMINAL INVESTIGATION BY THE POSTAL INSPECTION SERVICE AND THE FEDERAL BUREAU OF INVESTIGATION ACCORDING TO POSTAL INSPECTOR LARRY FRYER THE ASSOCIATION WHICH SAYS IT HASN'T HEARD FROM ANY FEDERAL INVESTIGATORS SINCE OCTOBER COMPLAINS IT'S THE VICTIM OF A POLITICAL WITCH HUNT IT'S FRUSTRATING SAYS UNITED SENIORS SPOKESMAN STEVEN ALLEN A FORMER SENATE AIDE ANOTHER OF THE BIG CANARDS ABOUT THE CLINTON PLAN IS THAT PEOPLE FACE 5 YEARS IN JAIL IF YOU BUY EXTRA CARE AS THE AMERICAN COUNCIL FOR HEALTH CARE REFORM AN ARLINGTON VA GROUP PUTS IT IN A DIRECTMAIL PACKAGE IT HAS SENT OUT TO MILLIONS OF PEOPLE THE COUNCIL WHICH ACCORDING TO TAX RECORDS HAD REVENUE OF 302259 IN 1993 WAS FOUNDED 11 YEARS AGO TO GET THE GOVERNMENT OUT OF HEALTH CARE WE AREN'T BEING ALARMIST SAYS THE GROUP'S CHRISTOPHER MANION WE THINK THE CLINTON BILL IS ALARMING BUT IN FACT WHILE THERE IS AN ANTIBRIBERY PROVISION IN THE CLINTON PROPOSAL THE BILL EXPLICITLY SAYS THAT PEOPLE ARE FREE TO PURCHASE ANY HEALTH CARE SERVICES THEY WANT OUT OF THEIR OWN POCKETS I DON'T SEE ANYBODY GOING TO JAIL ON A LIVERTRANSPLANT RAP SAYS JOHN SHEILS A VICE PRESIDENT AT HEALTHCARE CONSULTING FIRM LEWINVHI INC THEY'RE TRYING TO SCARE LITTLE OLD LADIES 9404290097 940429 THE BUSINESS OF LAW LAWYERS AND CLIENTS BY AMY STEVENS IN DAY OF BILLABLE HOURS WHEN A LAWYER TOOTS HIS OWN HORN TO THE PRESS SHOULD THE CLIENT HAVE TO PAY THE PIPER MANY LAWYERS THINK SO THEY READILY ADMIT BILLING FOR THE TIME THEY SPEND EXPLAINING A CLIENT'S CASE TO REPORTERS AND THEY DON'T DISCOUNT FOR THE FACT THAT SUCH PUBLIC EXPOSURE USUALLY ADVANCES THEIR OWN INTERESTS AS MUCH AS THEIR CLIENT'S BUT MOST LAWYERS SAY THEY DON'T CHARGE CLIENTS FOR GENERAL DISCUSSIONS WITH THE MEDIA THE QUESTION OF WHO PAYS FOR PRESS TIME IS LIKELY TO BECOME AN INCREASINGLY IMPORTANT ONE SINCE THE TAKEOVER WAVE OF THE 1980S MEDIA SPIN CONTROL HAS BECOME A KEY ELEMENT OF MANY MAJOR CASES AND DEALS AND LAWYERS HAVE GOTTEN MORE INVOLVED IN THE PROCESS BOTH PUBLICLY AND IN OFFTHERECORD CONVERSATIONS UNTIL RECENTLY THOUGH LAWYERS TYPICALLY INCLUDED PRESS CALLS UNDER THE GENERAL BILLING RUBRIC OF PROFESSIONAL SERVICES THEREFORE CLIENTS WERE USUALLY UNAWARE THAT SUCH CHATS WERE COSTING THEM MONEY NOW THAT CLIENTS ARE INCREASINGLY ASKING ATTORNEYS TO ITEMIZE THEIR BILLS THE PRICE OF PRESS CALLS CAN BE AN ISSUE AS WITH MOST MATTERS RELATING TO LEGAL FEES NO FORMAL RULES GOVERN WHETHER THE LAWYER OR THE CLIENT SHOULD PICK UP THE TAB FOR PUBLIC RELATIONS ETHICAL RULES IN MOST STATES PERMIT LAWYERS TO TALK TO THE PRESS IN ORDER TO FURTHER A CLIENT'S INTEREST SO LONG AS THE STATEMENTS AREN'T LIKELY TO MATERIALLY PREJUDICE AN ADJUDICATIVE PROCEEDING MEANWHILE THE RULES STATE ONLY THAT A LAWYER'S FEES MUST BE REASONABLE IN BANKRUPTCY CASES BILLS MUST BE LIMITED TO ACTUAL AND NECESSARY LEGAL SERVICES IN SOME CIRCUMSTANCES LEGAL EXPERTS SAY TALKING TO THE PRESS CAN BE JUST THAT ESPECIALLY IN THE BUSINESS ENVIRONMENT IT BECOMES PART OF A LAWYER'S JOB TO BE FIGHTING ON FRONTS OUTSIDE THE COURTROOM IN ORDER TO PROTECT THE CLIENT IN THE MARKET OR IN THE COMMUNITY SAYS DANIEL RICHMAN A PROFESSOR AT FORDHAM UNIVERSITY LAW SCHOOL THERE ARE A LOT OF REASONS WHY A LAWYER SHOULD LEGITIMATELY BE BILLING FOR THAT HE ADDS THAT CLIENTS WHO APPEAR OFTEN IN THE PRESS ARE IN PART SIGNALING TO THE LAWYER THAT THIS IS SOMETHING THAT'S MARKETABLE AN ARGUMENT THEREFORE CAN BE MADE MR RICHMAN ADDS THAT SOME OF THE CHARGES RELATED TO DEVELOPING THE LAWYER'S DAUNTING PERSONAL PROFILE COULD BE PASSED ON TO CLIENTS ALAN DERSHOWITZ THE OFTENQUOTED HARVARD LAW SCHOOL PROFESSOR AND CRIMINAL DEFENSE ATTORNEY SAYS HE HAS WORKED OUT THE FOLLOWING APPROACH I NEVER TALK FIRST I NEVER CALL PRESS CONFERENCES AND I ONLY TALK WHEN THE CLIENT WANTS ME TO IF YOU FOLLOW THOSE THREE RULES THE APPROPRIATE POLICY IS TO BILL HOWEVER IF AN INTERVIEW TOUCHES AT ALL ON HIS OWN CAREER MR DERSHOWITZ SAYS HE WON'T CHARGE FOR ANY OF IT FOR EXAMPLE HE RECALLS BILLING CLAUS VON BULOW FOR ROUGHLY 2 1/2 HOURS OF TRAVEL EXPENSES AND TIME RELATED TO A MEDIA APPEARANCE ON THE COURTHOUSE STEPS IN RHODE ISLAND BECAUSE WE WANTED TO USE IT AS AN OPPORTUNITY TO RESPOND TO CHARGES MADE BY THE PROSECUTORS BUT WHEN MR VON BULOW LATER WON AN APPEAL OF HIS ATTEMPTEDMURDER CONVICTION MR DERSHOWITZ DIDN'T BILL FOR HIS APPEARANCE THAT NIGHT ON ABC'S NIGHTLINE I RESOLVE DOUBTS AGAINST BILLING HE SAYS LESLIE ABRAMSON LOS ANGELES ATTORNEY FOR ACCUSED MURDERER ERIK MENENDEZ SAYS IF IT'S PART OF THE WORK OF THE CASE THEN IT'S BILLABLE SHE SAYS SHE NEVER COULD HAVE IMAGINED THE TIME SHE WOULD SPEND WITH THE PRESS ON THE MENENDEZ CASE WHICH ENDED IN A HUNG JURY EARLIER THIS YEAR BUT DIDN'T DIRECTLY BILL FOR IT SINCE SHE WAS PAID A 650000 FLAT FEE ON THE OTHER HAND LOS ANGELES LAWYER HOWARD WEITZMAN WHO REPRESENTS MICHAEL JACKSON AND OTHER HIGHPROFILE CLIENTS SAYS HE WOULDN'T THINK OF CHARGING FOR TIME SPENT RESPONDING TO REPORTERS' QUESTIONS ON THE WAY IN OR OUT OF COURT BUT IF A CLIENT ASKS FOR ADVICE ON MEDIA STRATEGY OR REQUESTS THAT MR WEITZMAN CONDUCT A FORMAL PRESS CONFERENCE THAT'S BILLED REGULARLY HE SAYS AT SOME BIG FIRMS LAWYERS RECORD MOST TIME SPENT TALKING TO THE PRESS UNDER A GENERAL UNBILLABLE LINE ITEM AKIN TO THE ONE FOR PRO BONO WORK THE ISSUE OF HOW COMMERCIAL LAW FIRMS HANDLE SUCH BILLS AROSE RECENTLY IN THE RH MACY & CO BANKRUPTCYLAW CASE WHEN AN ATTORNEY FOR THE COMPANY REBUKED A BONDHOLDERS' LAWYER WHO CHARGED 13185 FOR 293 HOURS LOGGED FOR TALKS WITH JOURNALISTS IN A LETTER FILED WITH THE COURT HARVEY MILLER WROTE IT IS HARDLY APPROPRIATE FOR THE DEBTORS' ESTATES TO BE SADDLED WITH THE COSTS OF YOUR INSATIABLE DESIRE TO SEE YOUR NAME IN PRINT ROBERT MILLER THE LAWYER TO WHOM THE LETTER WAS ADDRESSED NO RELATION TO HARVEY MILLER SAYS THE BILL WAS APPROPRIATE BECAUSE PUBLICIZING MAJOR DEVELOPMENTS IN THE CASE IS PART AND PARCEL OF THE OBLIGATION HE HAS AS AN ATTORNEY MEDIA DISPATCHES ARE HIS SOLE MEANS OF REGULAR COMMUNICATION WITH A CONSTITUENCY AS DIVERSE AND BROAD BASED AS PUBLIC BONDHOLDERS HE SAYS ROBERT MILLER OF NEW YORK'S BERLACK ISRAELS & LIBERMAN ADDS THAT HE DOESN'T CHARGE FOR THE INNUMERABLE OTHER OCCASIONS WHEN HE HAS BRIEF OR BROADBASED TALKS WITH REPORTERS FOR HIS PART HARVEY MILLER OF NEW YORK'S WEIL GOTSHAL & MANGES SAYS HE HAS BILLED MACY'S FOR LESS THAN TWO HOURS OF MEDIARELATED TIME IN THE PAST 2 1/2 YEARS AND HAS SPENT ANOTHER FOUR HOURS TALKING TO THE PRESS ABOUT THE CASE WHERE YOU SEE A PERSON GOING OUT OF HIS WAY TO ESTABLISH A COMMUNICATION CHANNEL I DON'T THINK THAT'S COMPENSABLE HE SAYS GLORIA ALLRED A LOS ANGELES PLAINTIFFS' LAWYER WHO HOLDS FREQUENT PRESS CONFERENCES AND APPEARS OFTEN ON TV INTERVIEW SHOWS AGREES I DON'T CHARGE CLIENTS FOR MY TIME DOING THIS SHE SAYS MS ALLRED DOES HOWEVER FEEL COMFORTABLE PASSING ON SOME COSTS TO THE MEDIA SHE GAVE HER COMMENT DURING A PERSONTOPERSON COLLECT PHONE CALL TO A REPORTER WE GET CALLS FROM ALL OVER THE COUNTRY ALL OF THE TIME SHE EXPLAINS GENERALLY THAT'S WHAT I DO 9404290095 940429 LEISURE & ARTS BOOKSHELF THE FATHER OF ALL CRITICS BY DAVE SHIFLETT RICHARD NIXON REST HIS SOUL MAY HAVE HAD A BAD TIME WITH THE PRESS BUT AT LEAST HE DIDN'T HAVE HL MENCKEN TO KICK HIM AROUND AS FRED HOBSON REMINDS US IN MENCKEN A LIFE RANDOM HOUSE 650 PAGES 35 WHEN IT CAME TO BLISTERING PRESIDENTS MENCKEN'S BLOWTORCH BLEW A BIT HOTTER THAN ANYTHING WIELDED BY RN'S TORMENTORS FDR WAS A QUACK WITH A CHRISTIAN SCIENCE SMILE TRUMAN WAS A FIFTHRATE MAN AND IN THE 1948 CAMPAIGN THE MAJOR CANDIDATES WERE SO LOUSY MENCKEN SUPPORTED THE ARCH SOUTHERNER STROM THURMOND FOR PRESIDENT EVEN IN HIS PRAISE MODE MENCKEN COULD BE TERRIFYING GEORGE WASHINGTON IN A DIFFERENT AGE WOULD BE UNDER INDICTMENT BY EVERY GRAND JURY SOUTH OF THE POTOMAC BORN IN BALTIMORE IN 1880 A HALFMILE FROM EDGAR ALLAN POE'S GRAVE AND A HALFMILE FROM BABE RUTH'S FUTURE BIRTHPLACE MENCKEN ALL BUT FLEW FROM THE WOMB WITH A GLARE IN ONE EYE AND A GLEAM IN THE OTHER AS HE LATER EXPLAINED HE WAS BORN WITH AN ATTITUDE HOW DID I GET MY SLANT ON LIFE HEREDITY MY ANCESTORS FOR THREE HUNDRED YEARS BACK WERE ALL BAD CITIZENS THEY WEREN'T MORAL IN THE CONVENTIONAL SENSE I INHERITED THEIR TRAITS I WAS PREJUDICED WHEN I CAME INTO THE WORLD EVEN HIS WRITING STYLE MAY HAVE BEEN PASSED DOWN FROM HIS GERMAN FOREBEARS AN ATTACK ON PEDANTS WRITTEN BY JOHANN BURKHARD MENCKEN 16741732 MOVED MENCKEN TO STRONG EMOTIONS IT GAVE ME A GREAT SHOCK ALL MY STOCK AND TRADE WAS THERE LOUD ASSERTIONS HEAVY BUFFOONERIES SLASHING ATTACKS ON THE PROFESSORS IT REALLY WAS UNCANNY WORKING FROM LETTERS DIARIES PERSONAL PAPERS RECENTLY RELEASED MANUSCRIPTS AND OTHER SOURCES MR HOBSON BRINGS THE SAGE TO LIFE AND HE IS AS WE WOULD HOPE HIM TO BE EARLY ON WE SEE THE YOUNG MENCKEN IN DANGER OF PERMANENT SERVITUDE IN THE FAMILY CIGAR BUSINESS BUT FATE INTERVENES ONE NIGHT WHEN HIS FATHER GOES INTO CONVULSIONS AS MENCKEN DASHES ABOUT THE NEIGHBORHOOD LOOKING FOR A DOCTOR HIS MIND CENTERS ON ONE THOUGHT IF MY FATHER DIED I'D BE FREE AT LAST HIS FATHER'S DEATH ALLOWED HIM IN 1899 TO TAKE HIS FIRST NEWSPAPER JOB MR HOBSON IS THOROUGH ON MENCKEN'S WORK HABITS 5000 WORDS A DAY AT THE PAPER BEFORE GOING HOME TO PRODUCE ESSAYS MAGAZINE ARTICLES AND BOOKS AND HE ALSO WRITES MOVINGLY OF MENCKEN'S LONELINESS AND STRUGGLES WITH FAMILY AND CRITICS ALSO INCLUDED ARE MENCKEN'S ESTIMATIONS OF THEODORE DREISER F SCOTT FITZGERALD WILLIAM FAULKNER AND MANY OTHER AUTHORS HE THOUGHT TALENTED BUT DISSOLUTE BUT IT IS MENCKEN'S TALENT FOR STIRRING UP THE ANIMALS THAT ENDEARS HIM TO US AND MR HOBSON SUPPLIES PLENTY OF REMINDERS THAT COMMENTATORS AND ESPECIALLY MENCKEN ONCE WORKED IN A MEDIUM OTHER THAN WARM SPIT THOSE WHO TODAY COMPLAIN ABOUT THE UNPRECEDENTED ATTACK ON RELIGIOUS CONSERVATIVES FORGET MENCKEN'S TREATMENT OF SOUTHERN FUNDAMENTALISTS AND THEN THERE WERE HIS PASTINGS OF ROTARIANS PROFESSORS AND FDR AND WHILE EDITORS LIKE TO BRAG THAT MENCKEN WAS A NEWSPAPERMAN NOT ONE OF THEM WOULD DARE PUBLISH HIS SORT OF WORK TODAY MENCKEN CAN JAR THE MODERN SENSIBILITY HE BELIEVED AMONG OTHER THINGS THAT THE STANDARDISSUE BRAIN OF A BLACK IS NOT FITTED FOR THE HIGHER FORM OF MENTAL EFFORT HIS IDEALS NO MATTER HOW LABORIOUSLY HE IS TRAINED AND SHELTERED REMAIN THOSE OF THE CLOWN NOR DO SOME OF HIS THOUGHTS ABOUT JEWS DO HIM HONOR I BELIEVE THAT JEWS ARE THE MOST IMPRUDENT AND IN FACT IDIOTIC PEOPLE EVER SEEN ON EARTH HE IS REDEEMED AT LEAST PARTIALLY BY THE FACT THAT FEW GROUPS WERE SPARED HIS LASH AND THAT HIS ACTIONS BELIED HIS WORDS HE HELPED BLACKS PROFESSIONALLY AND ASSISTED IN BRINGING JEWS OUT OF GERMANY EVEN THOUGH HE TENDED TO SIDE WITH GERMAN WAR ASPIRATIONS I AM FOR THE HELLISH DEUTSCHE UNTIL HELL FREEZES OVER HE WROTE TO DREISER IN 1914 FOR ALL HIS GROWLING MENCKEN DINED WITH CLERICS AND EVEN WROTE FOR THE ROTARIAN AND DESPITE CONSTANT RAILING AGAINST MORALITY AND VICE SQUADS HE WAS AS MR HOBSON SAYS IN MANY RESPECTS A PURITAN HIMSELF HE WAS ESPECIALLY CAUTIOUS AROUND WOMEN I NEVER DRINK WHAT YOU MIGHT CALL FREELY UNDER FEMALE SCRUTINY I FEAR TO CAUSE PAIN BY MY GURGLINGS AND SNORTINGS HE BELIEVED SOCIALISM WOULD FAIL PRIMARILY BECAUSE IT WAS BLIND TO THE COMPETITIVE NATURE OF LIFE EVERY COMFORT THAT WE HAVE TODAY WAS DEVISED BY SOME MAN WHO YEARNED TO GET MORE OUT OF LIFE THAN THE MEN AROUND HIM AND WHILE A RELIGIOUS SKEPTIC HE HAD BAD WORDS FOR ATHEISTS I CAN RECALL NO CONCRETE ATHEIST WHO DID NOT APPEAR TO ME TO BE A DONKEY TO DENY ANY GIVEN GOD IS OF COURSE QUITE REASONABLE BUT TO DENY ALL GODS IS SIMPLY FOLLY FOR IF THERE IS ANYTHING PLAIN ABOUT THE UNIVERSE IT IS THAT IT IS GOVERNED BY LAW AND IF THERE IS ANYTHING PLAIN ABOUT LAW IT IS THAT IT CAN NEVER BE ANYTHING BUT A MANIFESTATION OF WILL HIS LATER YEARS WERE A MIXTURE OF PLEASURE AND HORROR HE MARRIED WHEN HE WAS A WEEK SHY OF 50 A UNION THAT WAS AS WARM AS IT WAS BRIEF A STROKE IN NOVEMBER OF 1948 LEFT HIM UNABLE TO READ OR WRITE UNTIL HIS DEATH IN JANUARY OF 1956 HIS SUCCESSOR HAS YET TO APPEAR THOUGH HE HAS FOUND A VERY GOOD BIOGRAPHER 9404290094 940429 PEPPERAND SALT CAN RAISE THEIR RATES OUR EDUCATIONAL SYSTEM CAN'T BE DOING SO BADLY AFTER ALL IT DOES PRODUCE MORE THAN ENOUGH PLAYERS TO STOCK THE PROFOOTBALL AND PROBASKETBALL TEAMS 9404290093 940429 LETTERS TO THE EDITOR OUR ROLE DISTORTED IN WHITEWATER RUMORS OUR FIRM WAS MENTIONED IN RECENT ARTICLES IN THIS AND OTHER NEWSPAPERS ABOUT THE EFFECT OF WHITEWATER DEVELOPMENTS AND THEIR RELATED RUMORS ON FINANCIAL MARKETS IN SOME CASES INCLUDING IN THIS NEWSPAPER OUR FIRM'S ROLE WAS SO DISTORTED THAT A CORRECTION OF THE RECORD IS NECESSARY ON MARCH 9 OUR FIRM WHICH CONCENTRATES LARGELY ON ANALYZING ISSUES OF INTEREST TO FOREIGNEXCHANGE MARKETS ISSUED A PRIVATE MEMORANDUM TO ABOUT FOUR DOZEN FINANCIAL CLIENTS IN RESPONSE TO QUESTIONS FROM THEM CONCERNING CONGRESSIONAL REACTION TO WHITEWATER IRONICALLY WHILE THE MEMORANDUM WAS REPORTED TO HAVE CAUSED A MARKET REACTION IT ACTUALLY MADE RATHER MODEST OBSERVATIONS INCLUDING A PREDICTION THAT CHANGING WHITE HOUSE TACTICS ON WHITEWATER COULD BRING A RETURN TO BUSINESS AS USUAL BURIED IN THE MIDDLE OF THE REPORT WAS A BRIEF MENTION THAT FOR MONTHS RUMORS HAD CIRCULATED AMONG REPUBLICANS ON CAPITOL HILL REGARDING THE LOCATION OF THE SUICIDE DEATH OF DEPUTY WHITE HOUSE COUNSEL VINCENT FOSTER THE POINT OF INTEREST THE RUMORS WERE NOW BIPARTISAN HAVING ORIGINATED ALSO FROM A STAFF AIDE TO AN IMPORTANT DEMOCRATIC SENATOR WHO IS RESPONSIBLE FOR HEALTHCARE REFORM AND OTHER IMPORTANT LEGISLATION THE OBVIOUS QUESTION HOW WHITEWATER MIGHT AFFECT THE PRESIDENT'S LEGISLATIVE AGENDA ONLY THE MOST IMAGINATIVE OF MINDS WOULD CONCLUDE AFTER READING THE MEMORANDUM THAT A SMALL ECONOMICS CONSULTING FIRM HAD STUMBLED UPON THE LARGEST SCOOP SINCE WATERGATE AND THEN BURIED IT IN THE MIDDLE OF A PRIVATE MEMORANDUM ANY LOGICAL READING COULD NOT HELP BUT CONCLUDE THAT THE POLITICAL SOURCE WAS THE ISSUE THE MEMORANDUM CIRCULATED TO CLIENTS FOR 24 HOURS WITHOUT INCIDENT UNTIL IT WAS MISAPPROPRIATED AND LOOSELY INTERPRETED BY A POPULAR CONSERVATIVE TALKSHOW HOST AMONG OTHERS IT WAS AT THAT POINT THAT THE MEMORANDUM DREW BROADBASED ATTENTION YOUR ARTICLE MARCH 11 WAS PARTICULARLY TROUBLING IT INACCURATELY GIVES THE IMPRESSION THAT AN INTERVIEW HAD BEEN DONE BY THE REPORTER MOREOVER IT COULD EASILY LEAD THE READER TO THE CONCLUSION THAT OUR FIRM GLEEFULLY MASSMARKETED ERRONEOUS INFORMATION IN ORDER TO DISTURB FINANCIAL MARKETS AS A MEANS OF MARKETING A RETAILSUBSCRIPTION NEWSLETTER THAT IMPRESSION IS CONTRARY TO THE FACTS AS OUR FIRM HAS A LEGAL TRACK RECORD IN TRYING TO PROTECT THE CONFIDENTIALITY OF THE PROPRIETARY NATURE OF OUR PRODUCT WE ALSO DO NOT SELL A BROADBASED NEWSLETTER WHILE APPARENTLY IT ISN'T IRREGULAR FOR BYLINE REPORTERS TO GET INPUT FROM OTHER STAFF MEMBERS AND OTHER SOURCES THE PROCESS BY WHICH THIS STORY WAS PREPARED LEADS TO CONFUSION WHEN WE INFORMALLY DISCUSSED MARKET DEVELOPMENTS WITH YOUR WASHINGTON BUREAU CHIEF ON MARCH 10 HE DIDN'T MAKE US AWARE THAT A REPORTER WAS PREPARING AN ARTICLE ON OUR FIRM SO WE DIDN'T HAVE AN ADEQUATE CHANCE TO PRESENT OUR CASE THE ARTICLE'S USE OF THE QUOTATION IF YOU'RE 55 TO 60 RIGHT YOU'RE GOLD WAS TAKEN FROM A TWOANDAHALFYEAROLD JOURNAL ARTICLE ON OUR FIRM AND ITS CONTEXT HAS LONG BEEN IN DISPUTE THE QUOTATION WAS REFERRING TO THE MOST SUCCESSFUL TRADERS AND INVESTORS NOT TO THE FIELD OF ECONOMIC CONSULTING 9404290092 940429 LETTERS TO THE EDITOR HIV THE ADA AND NEEDLESS HYSTERIA IN REGARD TO JAMES BOVARD'S MARCH 23 EDITORIALPAGE PIECE DISABILITIES LAW HEALTH HAZARD MR BOVARD MAKES THE CASE THAT THE AMERICANS WITH DISABILITY ACT ENDANGERS PEOPLE BY EXPOSING THEM TO THE HAZARDS OF HIV TRANSMISSION TO DATE THERE HAS BEEN ONLY ONE DOCUMENTED INSTANCE OF CAREGIVERTOPATIENT HIV TRANSMISSION IN AMERICA THIS CASE WAS REPORTED IN FLORIDA A FEW YEARS AGO ON THE OTHER HAND THE ADA HAS KEPT THOUSANDS OF AMERICANS WITH DISABILITIES WORKING AND LEADING HEALTHY AND PRODUCTIVE LIVES MR BOVARD INACCURATELY INCITES FEAR IN MANY READERS AND LEADS THEM TO BELIEVE THE GOVERNMENT IS DOING THE COUNTRY A DISSERVICE BY IMPLEMENTING THE ADA IN ONE INSTANCE HE TELLS THE STORY OF A DISTRICT OF COLUMBIA COURT THAT RULED THAT A DC FIREFIGHTER WAS DENIED HIS RIGHTS BY NOT BEING ALLOWED TO PERFORM MOUTHTOMOUTH RESUSCITATION BECAUSE HE HAD HEPATITIS B THE ADA REQUIRES EMPLOYERS TO REACH REASONABLE ACCOMMODATIONS WITH EMPLOYEES TO ALLOW THEM TO CONTINUE WORKING REASONABLE ACCOMMODATIONS INCLUDE THE USE OF FLEXIBLE SCHEDULES SPECIAL FACILITIES AND MECHANISMS THAT WILL ALLOW THE EMPLOYEES TO CONTINUE IN THEIR TASK WITHOUT UNDULY BURDENING THE EMPLOYERS IN THE CASE OF THE FIREFIGHTERS THERE ARE TWO SIMPLE DEVICES THAT MOST EMERGENCY MEDICAL SERVICES USE THAT CAN EASILY SOLVE THAT PROBLEM THE FIRST IS A MECHANICAL RESPIRATORY ASSISTANCE DEVICE THAT ALLOWS THE EMS WORKER TO AVOID MOUTHTOMOUTH CONTACT COMPLETELY AND THE SECOND IS A MOUTHPIECE DEVELOPED YEARS AGO TO PREVENT MOUTHTOMOUTH CONTACT BETWEEN THE EMS WORKER AND THE PATIENT MR BOVARD ALSO STATES THAT THERE ARE 7000 HIVPOSITIVE PHYSICIANS PRACTICING IN THE US THIS IS A GROSS INACCURACY ACCORDING TO THE BEST FIGURES THE HIGHEST ACCURATE ESTIMATE OF THE NUMBER OF PRACTICING HIVPOSITIVE PHYSICIANS IS 2300 I THINK THAT THE NUMBER USED BY MR BOVARD ACTUALLY REFERS TO THE TOTAL NUMBER OF CASES OF HIV INFECTION AMONG PHYSICIANS SINCE THE EPIDEMIC BEGAN MOST OF THOSE 7000 INFECTIONS WERE CONTRACTED OUTSIDE THE WORKPLACE AND OF THAT NUMBER MOST OF THE INFECTED PHYSICIANS HAVE ALREADY DIED MR BOVARD CONTINUES BY SAYING THAT THE CHANCE OF AN HIVPOSITIVE DOCTOR INFECTING A PATIENT IS 81 PROBABILITY ARGUMENTS TEND TO BE CONFUSING HOWEVER AFTER MORE THAN A DECADE OF DEALING WITH HIV WE HAVE ONLY ONE DOCUMENTED INSTANCE OF PROVIDERTOPATIENT TRANSMISSION HIV TRANSMISSION IS PREVENTABLE AND WE HAVE THE TOOLS AND THE KNOWLEDGE TO KEEP PEOPLE SAFE AND HEALTHY THE KEY TO DEALING WITH THIS SERIOUS ISSUE IS NOT TO DISCRIMINATE OR INCITE HYSTERIA WE MUST BE CERTAIN THAT UNIVERSAL PRECAUTIONS AGAINST BLOODBORN PATHOGENS ARE APPLIED CONSISTENTLY AND CORRECTLY IN PLACES WHERE RISK OF OCCUPATIONAL EXPOSURE MAY BE GREATER REGARDLESS OF WHETHER A PERSON IS A PHYSICIAN DENTIST NURSE OR PATIENT IT IS NOT ALWAYS POSSIBLE TO KNOW IN ADVANCE IF HE OR SHE IS HIV POSITIVE THERE IS NO REASON TO BE EXTRA CAUTIOUS ONLY IN SELECT CASES FOR THE SAFETY OF EVERYONE INVOLVED ALL CAREGIVING SITUATIONS MUST BE TREATED THE SAME HEALTH CARE WORKERS AND PATIENTS SHOULD BE CAUTIOUS AND SAFE EVERY TIME THIS IS CERTAINLY POSSIBLE WITHIN THE FRAMEWORK OF THE AMERICANS WITH DISABILITIES ACT 9404290091 940406 BOARD OF CONTRIBUTORS REMEMBERING ADAM SMITH BY HERBERT STEIN FROM THE DAY IT WAS PUBLISHED MARCH 9 1776 THE WEALTH OF NATIONS WAS A BIG HIT BUT ITS AUTHOR ADAM SMITH IS PROBABLY MORE POPULAR NOW THAN EVER BEFORE KNOWN TO MORE PEOPLE WITH MORE APPROBATION THROUGHOUT THE WORLD THE WIGGED HEAD OF ADAM SMITH HAS REPLACED THE BEARDED FACE OF KARL MARX AS THE SYMBOL OF THE BENEFICENT REVOLUTION BUT I HAVE A FEELING THAT FEW OF HIS FANS HAVE READ THE WEALTH OF NATIONS HEREAFTER CALLED WOFN AND THAT EVEN FEWER HAVE READ IT RECENTLY I SUSPECT THAT THIS IS EVEN TRUE OF THOSE WHO WEAR THE ADAM SMITH NECKTIE AS A SIGN THAT THEY ARE CPC CONSERVATIVELY POLITICALLY CORRECT UNTIL LAST MONTH I HAD NOT READ WOFN SINCE I WAS A STUDENT IN 1936 BUT IN MARCH A BOOK DISCUSSION GROUP OF WHICH I AM A MEMBER ASSIGNED ITSELF SOME CHAPTERS AND SO I HAD OCCASION TO READ SEVERAL HUNDRED PAGES ALONG WITH EXPERT COMMENTARY BY JACOB VINER JOSEPH SCHUMPETER AND ANDREW SKINNER THE EXPERIENCE WAS FASCINATING I VENTURE TO PASS ON A FEW OBSERVATIONS HERE TO REMIND SOME OF WHAT THEY READ LONG AGO AND TO ENCOURAGE OTHERS TO DIP INTO THE BOOK FOR THE FIRST TIME I MUST SAY THAT THE EVERYMAN EDITION WHICH I USED AS A STUDENT HAD QUITE LEGIBLE TYPE 58 YEARS AGO BUT SINCE THEN THE SIZE OF THE TYPE HAS SHRUNK TERRIBLY FORTUNATELY THIS YEAR THE MODERN LIBRARY HAS PUBLISHED A NEW EDITION WITH TYPE LARGE ENOUGH FOR ADULT EYES WHY SHOULD ONE RECALL SMITH TODAY WE SHOULD DO IT FOR THE SAME REASON THAT WE SHOULD VISIT MONTICELLO THE HOME OF HIS YOUNGER CONTEMPORARY THOMAS JEFFERSON ONE DOESN'T VISIT MONTICELLO LOOKING FOR A PLACE TO LIVE IT ISN'T FOR RENT MOREOVER ONE WOULDN'T WANT TO LIVE AT MONTICELLO THERE IS NO AIR CONDITIONING THE KITCHEN IS TOO FAR FROM THE DINING ROOM AND TOO MANY SERVANTS WOULD BE REQUIRED WE VISIT MONTICELLO TO MARVEL AT WHAT THE HUMAN MIND CAN DO TO COMBINE BEAUTY WITH UTILITY AND WE VISIT IT TO SEE A MODEL NOT OF A HOUSE BUT OF HOW TO THINK ABOUT BUILDING A HOUSE WE DON'T READ ADAM SMITH TODAY TO LEARN ECONOMIC THEORY ONE CAN LEARN THAT BETTER AND EASIER FROM ANY SOPHOMORE ECONOMICS TEXTBOOK NEITHER DO WE READ HIM TODAY TO LEARN ABOUT ECONOMIC LIFE IN 18TH CENTURY BRITAIN ONE COULD LEARN THAT BUT FEW OF US CARE VERY MUCH ABOUT IT I BELIEVE THAT WE READ SMITH TODAY TO MARVEL AT THE GENIUS WITH WHICH THE WOFN WAS PRODUCED AND WE READ HIM AS A MODEL OF HOW TO THINK ABOUT THE ROLE OF GOVERNMENT IN A FREE EXCHANGE ECONOMY THE FIRST THING THAT IMPRESSED ME IN READING SMITH THIS TIME WAS WHAT A GOOD WRITER HE WAS HE WAS AMONG OTHER THINGS A PROFESSOR OF RHETORIC THAT BY ITSELF IS NO GUARANTEE OF GOOD WRITING PERHAPS MORE THE CONTRARY BUT SMITH HAD AN INTEREST IN WRITING HE WANTED TO COMMUNICATE CLEARLY AND ATTRACTIVELY AND HE SUCCEEDED STARTING THE TREATISE WITH THE SIMPLE HOMELY DESCRIPTION OF THE PIN FACTORY WAS A BRILLIANT STROKE AT FIRST ONE WONDERS WHAT THAT IS DOING THERE BUT THEN IT BECOMES CLEAR THAT HE IS LEADING US TO UNDERSTAND AND APPRECIATE THE DIVISION OF LABOR AND THE DIVISION OF LABOR LEADS US INEXORABLY TO THE IDEA OF EXCHANGE AS THE NATURAL AND EFFICIENT WAY TO ORGANIZE AN ECONOMY AT THAT POINT THE BATTLE IS HALF OVER THE REST IS DRAWING OUT THE IMPLICATIONS OF THE FACT THAT A MODERN ECONOMY IS AN EXCHANGE SYSTEM SMITH WAS A WELLORGANIZED WRITER HE KNEW WHAT HE WAS DOING AND WHERE HE WAS GOING AT THE END OF BOOK I CHAPTER IV AFTER LISTING THREE SUBJECTS HE WAS GOING TO DISCUSS HE WROTE I SHALL ENDEAVOR TO EXPLAIN AS FULLY AND DISTINCTLY AS I CAN THOSE THREE SUBJECTS IN THE THREE FOLLOWING CHAPTERS FOR WHICH I MUST VERY EARNESTLY ENTREAT BOTH THE PATIENCE AND ATTENTION OF THE READER HIS PATIENCE IN ORDER TO EXAMINE A DETAIL WHICH MAY IN SOME PLACES APPEAR UNNECESSARILY TEDIOUS AND HIS ATTENTION IN ORDER TO UNDERSTAND WHAT MAY PERHAPS AFTER THE FULLEST EXPLICATION WHICH I AM CAPABLE OF GIVING TO IT APPEAR STILL IN SOME DEGREE OBSCURE I AM ALWAYS WILLING TO RUN SOME HAZARD OF BEING TEDIOUS IN ORDER TO BE SURE THAT I AM PERSPICUOUS AND AFTER TAKING THE UTMOST PAINS THAT I CAN TO BE PERSPICUOUS SOME OBSCURITY MAY STILL APPEAR TO REMAIN UPON A SUBJECT IN ITS OWN NATURE EXTREMELY ABSTRACTED IN MY STUDENT TEXT I WROTE IN THE MARGIN NEXT TO THIS PARAGRAPH WONDERFUL AND I STILL FIND IT WONDERFUL THERE ARE TEDIOUS PASSAGES AND I WISH THAT THE BRITISH HAD GONE ONTO THE DECIMAL SYSTEM OF CURRENCY 300 YEARS AGO SO WE WOULD BE SPARED THE BUSINESS OF GUINEAS AND POUNDS SHILLINGS AND PENCE BUT THE READER CAN USUALLY TELL WHEN HE IS APPROACHING ONE OF THOSE DESERTS AND CAN SKIRT AROUND WITHOUT MUCH LOSS THE WOFN IS FULL OF WELLCRAFTED SENTENCES THE MOST FAMOUS SENTENCE IN THE WOFN IS PROBABLY IT IS NOT FROM THE BENEVOLENCE OF THE BUTCHER THE BREWER OR THE BAKER THAT WE EXPECT OUR DINNER BUT FROM THEIR REGARD TO THEIR OWN INTEREST THAT IS AN ACUTE PERCEPTION BUT IT IS ALSO A GREAT SENTENCE NOTICE THE ALLITERATION OF THE B'S AT THE BEGINNING THE DOWNTOEARTH APPEAL TO GETTING OUR DINNER RATHER THAN MAXIMIZING GROSS DOMESTIC PRODUCT AS WE MIGHT SAY AND THE STING IN THE TAIL OF THE SENTENCE SMITH RARELY USES THE PRONOUN I BUT HIS PERSONALITY COMES THROUGH AND IT IS SURPRISING WE TEND TO THINK OF HIM AS AN ABSENTMINDED SCOTTISH PROFESSOR WHO LED A SECLUDED EXISTENCE LIVING WITH HIS MOTHER ALL HIS LIFE UNTIL SHE DIED WHEN HE WAS 61 BUT WHAT WE SEE IN WOFN IS A WORLDLY SKEPTICAL WITTY MAN WOFN IS FULL OF SARCASM ABOUT BUSINESSMEN POLITICIANS PROFESSORS AND CLERGYMEN HE DOESN'T EVEN GLAMORIZE THE COMMON MAN WHOM HE TENDS TO REGARD AS PRETTY STUPID ALL OF THAT IS PLEASANT TO A READER WHO DOES NOT CONSIDER HIMSELF TO FALL INTO ANY OF THOSE CATEGORIES BUT THE PEOPLE WHO WEAR THE ADAM SMITH TIE ARE NOT DOING SO TO HONOR LITERARY GENIUS THEY ARE DOING SO TO MAKE A STATEMENT OF THEIR DEVOTION TO THE IDEA OF FREE MARKETS AND LIMITED GOVERNMENT WHAT STANDS OUT IN WOFN HOWEVER IS THAT THEIR PATRON SAINT WAS NOT PURE OR DOCTRINAIRE ABOUT THIS IDEA HE VIEWED GOVERNMENT INTERVENTION IN THE MARKET WITH GREAT SKEPTICISM HE REGARDED HIS EXPOSITION OF THE VIRTUES OF THE FREE MARKET AS HIS MAIN CONTRIBUTION TO POLICY AND THE PURPOSE FOR WHICH HIS ECONOMIC ANALYSIS WAS DEVELOPED YET HE WAS PREPARED TO ACCEPT OR PROPOSE QUALIFICATIONS TO THAT POLICY IN THE SPECIFIC CASES WHERE HE JUDGED THAT THEIR NET EFFECT WOULD BE BENEFICIAL AND WOULD NOT UNDERMINE THE BASICALLY FREE CHARACTER OF THE SYSTEM HE DID NOT WEAR THE ADAM SMITH NECKTIE THESE CASES WERE NUMEROUS AND SOME OF THEM ARE SURPRISING I GIVE HERE A LIST CERTAINLY INCOMPLETE LARGELY DERIVED FROM VINER'S ARTICLE ON SMITH WRITTEN FOR THE SESQUICENTENNIAL OF THE WOFN THE PARENTHESES ARE MINE THE GOVERNMENT COULD LEGITIMATELY DO THE FOLLOWING PROTECT THE MERCHANT MARINE AND GIVE BOUNTIES TO DEFENSERELATED MANUFACTURING INDUSTRIES IMPOSE TARIFFS ON IMPORTS IN ORDER TO BARGAIN FOR REDUCTION OF TARIFFS BY OTHER COUNTRIES PUNISH AND TAKE STEPS TO PREVENT DISHONESTY VIOLENCE AND FRAUD DOES THIS INCLUDE THE SEC AND WOULD PREVENTION OF VIOLENCE JUSTIFY MEASURES TO ASSIST GHETTO YOUTH ESTABLISH INDICATORS OF QUALITY OF GOODS SUCH AS THE STERLING MARK FOR SILVER DOES THIS JUSTIFY THE FOOD AND DRUG ADMINISTRATION THE FEDERAL TRADE COMMISSION AND THE CONSUMER PRODUCT SAFETY COMMISSION REQUIRE EMPLOYERS TO PAY WAGES IN CASH RATHER THAN IN KIND COULD THE GOVERNMENT CONVERSELY REQUIRE EMPLOYERS TO PAY PART OF WAGES IN THE FORM OF HEALTH BENEFITS REGULATE BANKING PROVIDE PUBLIC GOODS SUCH AS HIGHWAYS HARBORS BRIDGES AND CANALS WHAT ABOUT RAILWAYS AIRLINES RUN THE POST OFFICE ALSO TELEPHONE THE INFORMATION HIGHWAY GRANT PATENTS AND COPYRIGHTS GIVE A TEMPORARY MONOPOLY TO A TRADING COMPANY DEVELOPING COMMERCE IN NEW AND RISKY REGIONS IS THIS INDUSTRIAL POLICY MANAGED TRADE REQUIRE CHILDREN TO HAVE A CERTAIN LEVEL OF EDUCATION PROVIDE PROTECTION AGAINST COMMUNICABLE DISEASES REQUIRE THE STREETS TO BE KEPT CLEAN ENVIRONMENTALISM SET A CEILING ON INTEREST RATES IMPOSE DISCRIMINATORY TAXATION TO DETER IMPROPER OR LUXURIOUS BEHAVIOR THE POINT IS NOT THAT ALL THE ITEMS ON SMITH'S LIST BELONG ON OUR LIST TODAY NEITHER SHOULD WE CONSIDER OURSELVES TO BE COMMITTING A SIN IF WE DECIDE TO ADD SOME THINGS TO OUR LIST OF QUALIFICATIONS ON THE FREE MARKET THAT WERE NOT ON HIS FOR EXAMPLE THERE IS NOTHING IN SMITH'S LIST ABOUT GOVERNMENT ACTION TO DEAL DIRECTLY WITH THE PROBLEM OF POVERTY THE EVIDENCE IS MIXED AS TO WHETHER SMITH MEANT DELIBERATELY TO EXCLUDE SUCH ACTION OR ONLY NEGLECTED TO INCLUDE IT THE POINT IS THAT SMITH WAS PREPARED TO LOOK AT THE CONDITIONS OF HIS TIME AND MAKE A JUDGMENT REFLECTING A PRESUMPTION AGAINST GOVERNMENT INTERVENTION ABOUT WHETHER GOVERNMENT ACTION IN PARTICULAR CASES WAS APPROPRIATE HIS ADMIRERS DO NOT HAVE TO ACCEPT HIS JUDGMENTS BUT THEY SHOULD ACCEPT THE IDEA THAT SUCH JUDGMENTS HAVE TO BE MADE A FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS MR STEIN IS AN AMERICAN ENTERPRISE INSTITUTE FELLOW SEE RELATED LETTER LETTERS TO THE EDITOR ADAM SMITH'S UNEQUIVOCAL STAND WSJ APRIL 29 1994 9404060067 YY94 MM04 9404290088 940429 DELTA AIR TO PARE UP TO 15000 JOBS OR 20 OF STAFF IN BIG RESTRUCTURING BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL DELTA AIR LINES SAID IT WILL ELIMINATE AS MANY AS 15000 JOBS OR 20 OF ITS WORK FORCE IN ONE OF THE MOST AGGRESSIVE AND SWEEPING RESTRUCTURING PLANS IN THE EMBATTLED AIRLINE INDUSTRY DELTA'S OVERHAUL CALLS FOR IT TO SLASH ANNUAL OPERATING COSTS BY 2 BILLION OVER THE NEXT THREE YEARS IT IS THE LATEST SIGN OF THE MASSIVE RETRENCHMENT UNDER WAY BY THE NATION'S BIG AIRLINES AS DELTA BECOMES THE LAST OF THE INDUSTRY'S LARGEST PLAYERS TO OVERHAUL ITS OPERATIONS AMID SAVAGE COMPETITION FROM STARTUP AND LOWFARE OPERATORS I THINK WHAT WE ARE WITNESSING IS THE FINAL STAGE OF THE DEREGULATION EXPERIMENT AND THAT IS THE RESTRUCTING OF THE LARGE INEFFICIENT AIRLINE SAID JULIUS MALDUTIS AN AIRLINE ANALYST AT SALOMON BROTHERS INC DELTA HAS ALWAYS PAID ITS WORKERS WELL AND PROMISED THEM JOB SECURITY KNOWING THAT TRANSLATED INTO A CUSTOMERFRIENDLY ATMOSPHERE AND AN AIRLINE NEARLY FREE OF UNIONS WHILE THE ATLANTABASED AIRLINE HAD BROKEN ITS 35YEAR BARRIER AGAINST FURLOUGHS LAST YEAR THOSE CUTBACKS WERE FAR SHORT OF THE LEVELS DELTA ANNOUNCED YESTERDAY IN A NEWS CONFERENCE YESTERDAY DELTA'S CHAIRMAN AND CHIEF EXECUTIVE RONALD W ALLEN SET OUT THE COMPANY'S NEW DIRECTION THE ROOT OF DELTA'S PROBLEMS IS HIGH COSTS IN MARKETS WHERE PRICES ARE BEING SET BY LOWCOST CARRIERS HE SAID OUR GOAL IS TO BE A HIGHVALUE AIRLINE FOR THE CUSTOMER BUT TO DO IT AT A LOW COST HE ADDED THAT DELTA WOULD FORGO FOR NOW STARTING A LOWCOST CARRIER OF ITS OWN TO COMPETE HEAD TO HEAD WITH OTHER SUCH OPERATIONS BECAUSE THAT WOULDN'T SOLVE THE AIRLINE'S UNDERLYING PROBLEM WITH HIGH COSTS DELTA MADE ITS ANNOUNCEMENT YESTERDAY SHORTLY AFTER ANNOUNCING A FISCAL THIRDQUARTER NET LOSS OF 779 MILLION OR 210 A SHARE IN THE YEAREARLIER QUARTER THE AIRLINE HAD A NET LOSS OF 1523 MILLION OR 361 A SHARE THE RESULTS FROM THE 1993 QUARTER INCLUDE A PRETAX RESTRUCTURING CHARGE OF 825 MILLION INCURRED WHEN DELTA SIMPLIFIED ITS FLEET BY RETIRING JETS REVENUE FOR THE LATEST QUARTER ENDED MARCH 31 WAS 294 BILLION UP ONLY SLIGHTLY FROM THE YEAREARLIER 293 BILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY DELTA SHARES CLOSED AT 4525 UP 1875 OR 43 DELTA HAS HAD MORE THAN 2 BILLION IN LOSSES SINCE 1991 AND HAS LAUNCHED FIVE ROUNDS OF COSTCUTTING INCLUDING ONE EARLIER THIS YEAR THAT RESTRUCTURED THE MONEYLOSING TRANSATLANTIC ROUTES ACQUIRED FROM PAN AM CORP IN 1991 THE AIRLINE SAID IT WON'T DISCLOSE UNTIL SEPTEMBER THE DETAILS OF LATEST COSTCUTTING INITIATIVE BUT SAID IT EXPECTS TO TAKE CHARGES THIS QUARTER OF 400 MILLION TO 600 MILLION AS A RESULT THIS NEWEST INITIATIVE WILL BE CALLED PROJECT LEADERSHIP 75 A REFERENCE TO THE AIRLINE'S GOAL OF GETTING ITS OPERATING COST OF FLYING A SEAT ONE MILE WHAT THE INDUSTRY CALLS AN AVAILABLE SEAT MILE DOWN TO 75 CENTS BY THE SUMMER OF 1997 CURRENTLY DELTA'S COST IS 926 CENTS THAT IS SLIGHTLY HIGHER THAN THE NATION'S FIRST AND SECONDLARGEST CARRIERS UAL CORP'S UNITED AIRLINES AND AMR CORP'S AMERICAN AIRLINES BUT DELTA'S COSTS ARE MUCH HIGHER THAN THOSE OF SOUTHWEST AIRLINES AT 726 CENTS SOUTHWEST HAS BEEN THE ONLY CONSISTENTLY PROFITABLE AIRLINE OVER THE PAST FEW YEARS DELTA'S COSTS ARE ALSO HIGHER THAN A NUMBER OF SMALL STARTUP CARRIERS WITH COSTS A PENNY UNDER SOUTHWEST'S WALL STREET ANALYSTS SAID THAT DELTA'S ATTEMPT TO CUT THE COST OF A SEAT MILE BY 19 IN THREE YEARS MAY BE A LONG SHOT IF THEY DO IT THEY DESERVE A BUNCH OF MEDALS SAID RAY NEIDL AN AIRLINE ANALYST WITH FURMAN SELZ INC AIRLINE ANALYST SAM BUTTRICK OF KIDDER PEABODY & CO SAID AS MUCH AS I APPLAUD DELTA FOR AGGRESSIVELY ANNOUNCING A SET OF GOALS SAYING IT AND DOING IT ARE TWO DISTINCT ISSUES EVEN MR ALLEN DELTA'S CHAIRMAN ACKNOWLEDGED IT'S A VERY AGGRESSIVE GOAL ONE DELTA ADVANTAGE IS THAT UNLIKE NEARLY ALL ITS AIRLINE COUNTERPARTS IT IS NOT HIGHLY UNIONIZED THAT WILL ENABLE THE CARRIER TO ELIMINATE JOBS AND CONTRACT OUT OTHERS WHICH MIGHT BE A VIOLATION OF UNION AGREEMENTS ELSEWHERE ONLY DELTA'S PILOTS AND ITS DISPATCHERS ARE REPRESENTED BY UNIONS YESTERDAY MR ALLEN MET WITH LEADERS OF THE DELTA BRANCH OF THE AIR LINE PILOTS ASSOCIATION HIMSELF ASKING THEM TO REOPEN CONTRACT NEGOTIATIONS SEVERAL MONTHS EARLY AND OUTLINING PLANS TO CUT 340 MILLION PER YEAR FROM PILOT PAYROLL COSTS IN A STATEMENT RELEASED AFTER THE MEETING THE PILOTS UNION SAID IT NEEDS TO EXAMINE THE PLAN BEFORE IT CAN COMMENT ON IT MR ALLEN SAID MANY OF THE JOB CUTBACKS WILL BE ACHIEVED THROUGH ATTRITION EARLY RETIREMENT VOLUNTARY LEAVES AND OTHER INCENTIVES BUT THE COMPANY SAID IT ALSO EXPECTS TO LAY OFF 3000 TO 4000 WORKERS THE COMPANY SAID IT WILL COMPLETE ITS STAFF CUTS BY THE END OF JUNE 1995 MR ALLEN SAID DELTA CREATED 11 TEAMS EACH OF WHICH MUST FIND COST REDUCTIONS IN SPECIFIC AREAS SUCH AS AIRPORT OPERATIONS OR MARKETING BUT THE AIRLINE DOESN'T CURRENTLY PLAN TO SHRINK OR SHIFT ITS FLIGHT PATTERNS VERY MUCH INSTEAD DELTA WILL RELY ON GETTING ITS PLANES IN AND OUT OF AIRPORTS MORE QUICKLY INCREASING FLYING TIME IF THIS DOESN'T WORK MR ALLEN SAID THE AIRLINE MIGHT TRY TO SAVE MONEY BY SHIFTING MORE FLIGHTS TO ITS REGIONAL PARTNERS AS IT HAS IN IN THE DALLASFORT WORTH AREA AND ATLANTA FOR THE NINE MONTHS DELTA SAID ITS NET LOSS NARROWED TO 1486 MILLION OR 481 A SHARE FROM 101 BILLION OR 2194 A SHARE THE CURRENT PERIOD INCLUDES A 1123 MILLION PRETAX RESTRUCTURING CHARGE RELATED TO EARLY RETIREMENT FROM A PREVIOUS COSTCUTTING MOVE THE YEAREARLIER PERIOD INCLUDES THE FLEETSIMPLIFICATION CHARGE OF 825 MILLION AND AN AFTERTAX ACCOUNTING CHANGE OF 5871 MILLION SEPARATELY UAL REPORTED A FIRSTQUARTER NET LOSS OF 97 MILLION OR 437 A SHARE NARROWED FROM THE YEAREARLIER NET LOSS OF 157 MILLION OR 669 A SHARE THE LATEST QUARTERLY LOSS WAS WIDENED BY 26 MILLION THE RESULT OF ADOPTING A NEW ACCOUNTING STANDARD RELATED TO RETIREMENT BENEFITS THE QUARTER ALSO INCLUDED AN AFTERTAX CHARGE OF 12 MILLION FOR COSTS RELATED TO A PROPOSED EMPLOYEE BUYOUT ABSENT THAT UAL'S FIRSTQUARTER LOSS BEFORE THE ACCOUNTING ADJUSTMENT WOULD HAVE BEEN 59 MILLION OR 280 A SHARE IN LINE WITH ANALYSTS' EXPECTATIONS THE YEAREARLIER QUARTER INCLUDED AN EXTRAORDINARY CHARGE OF 19 MILLION RELATED TO THE RETIREMENT OF DEBT REVENUE ROSE 47 TO 32 BILLION FROM 305 BILLION THE COMPANY SAID ITS PRETAX OPERATING LOSS NARROWED TO 36 MILLION FROM 121 MILLION IN THE YEAREARLIER PERIOD AS THE AIRLINE BENEFITED FROM LOWER FUEL COSTS AMONG OTHER EXPENSES STILL UAL'S YIELD OR REVENUE PER PASSENGER MILE SLIPPED NEARLY 1 WHILE ITS OPERATING COSTS ROSE ABOUT 2 UAL BLAMED THE EXPANSION OF LOWCOST CARRIERS WHOSE PRESENCE LOWERS FARES IN MARKETS THEY SERVE FOR THE DECLINE IN ITS YIELD UAL HAS ASKED SHAREHOLDERS TO APPROVE A CONCESSIONFOREQUITY TRANSACTION THAT WOULD TRANSFER MAJORITY OWERSHIP OF THE COMPANY TO EMPLOYEES LOWER LABOR COSTS SUBSTANTIALLY AND ALLOW UNITED TO FORM A SEPARATE LOWCOST AIRLINE UAL CALLED THE FIRSTQUARTER RESULTS FAR FROM SATISFACTORY BUT THE COMPANY SAID THE PROPOSED EMPLOYEE WAGECONCESSION TRANSACTION HAD IT BEEN IN PLACE WOULD HAVE SAVED THE COMPANY ABOUT 105 MILLION IN LABOR EXPENSES IN THE FIRST QUARTER IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE UAL SHARES CLOSED AT 128875 UP 175 MICHAEL J MCCARTHY CONTRIBUTED TO THIS ARTICLE 9404290086 940429 AN EMPLOYEE FIRED BY KIDDER PEABODY CASTS A PALL OF FEAR CLAIMS OF THREATS DOLLS STUCK WITH PINS LED TO ARREST HIS LAWYER IT'S NOTHING BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK KIDDER PEABODY GROUP INC ALREADY REELING FROM A BONDTRADING SCANDAL SAYS IT IS HAUNTED BY SOMETHING SCARIER THESE DAYS A STALKER ON A SUNNY AFTERNOON LAST DECEMBER JOHN KLIEBERT AN EXKIDDER BOND SALESMAN STOPPED HIS FORMER BOSS JOEL JJ MCKOAN IN FRONT OF KIDDER'S HEADQUARTERS AT HANOVER SQUARE NEAR WALL STREET AS KIDDER EMPLOYEES SCURRIED BY ON LUNCH BREAK MR KLIEBERT JABBED HIS FINGER AT MR MCKOAN COLLEAGUES SAY MR KLIEBERT TAUNTED MR MCKOAN TELLING HIM HIS SHIRT WOULD LOOK GOOD WITH A RED SPLOTCH IN THE CHEST AREA ACCORDING TO A COMPLAINT FILED IN NEW YORK CITY CRIMINAL COURT AGAINST MR KLIEBERT MR MCKOAN WAS SHAKEN COLLEAGUES SAY HE HAD JUST BEEN TOLD OF A PHONE CALL TO A KIDDER TRADER IN WHICH MR KLIEBERT WHO WAS FIRED LAST SPRING THREATENED TO GET EVEN WITH FOUR FORMER KIDDER COWORKERS INCLUDING MR MCKOAN ACCORDING TO THE COMPLAINT WHICH IS A MATTER OF PUBLIC RECORD MR MCKOAN DECLINES TO DISCUSS THE MATTER MR KLIEBERT 41 YEARS OLD COULDN'T BE REACHED FOR COMMENT DONALD ROSENKRANTZ HIS LAWYER SAYS KIDDER IS OVERREACTING MR KLIEBERT IS A PERFECTLY LAWABIDING CITIZEN AND GOOD GUY WITH THE GREATEST RESPECT FOR KIDDER'S MANAGEMENT HE ADDS HE CALLS THE INCIDENT INVOLVING MR MCKOAN JUST A MISINTERPRETATION STEMMING FROM MR KLIEBERT'S UNUSUAL SENSE OF HUMOR IT'S NO JOKE TO KIDDER AFTER THE INCIDENT KIDDER EMPLOYEES COMPLAINED TO AUTHORITIES AND MR KLIEBERT WAS ARRESTED BY AN INVESTIGATOR FOR THE MANHATTAN DISTRICT ATTORNEY'S OFFICE HE COULD FACE TRIAL ON THIRDDEGREE MENACING CHARGES A MISDEMEANOR A DISTRICT ATTORNEY'S SPOKESMAN SAYS THE CASE WAS ADJOURNED TO AUG 1 AFTER MR KLIEBERT AGREED TO HONOR A CRIMINALCOURT ORDER TO SEE A THERAPIST AND NOT CONTACT THE FOUR KIDDER EMPLOYEES KIDDER'S CONCERNS WERE FUELED BY A POLICE SEARCH OF MR KLIEBERT'S LONG ISLAND HOME SHORTLY AFTER HIS ARREST THE SEARCH TURNED UP TWO RIFLES AND A CROSSBOW THE DISTRICT ATTORNEY'S OFFICE SAYS MR KLIEBERT ALSO KEEPS AN APARTMENT WHICH HE LIVED IN BEFORE THE ALLEGED THREATS IN NEW YORK CITY A STONE'S THROW FROM KIDDER'S OFFICES MR ROSENKRANTZ SAYS THE RIFLES AND CROSSBOW ARE SPORTING WEAPONS LONG OWNED BY MR KLIEBERT AND USED ONLY FOR TARGET PRACTICE KIDDER HAS OTHER CONCERNS OF COURSE ALL OF WALL STREET NOW IS RIVETED ON KIDDER'S HIGHLY PUBLICIZED BOND SCANDAL THE GENERAL ELECTRIC CO UNIT EARLIER THIS MONTH FIRED JOSEPH JETT ITS GOVERNMENTBOND CHIEF ALLEGING THAT HE CREATED BOGUS TRADES AND PROFITS FOR MORE THAN A YEAR TO MASK 100 MILLION IN LOSSES AND BOOST HIS PERFORMANCEBASED PAY TO 9 MILLION IN 1993 BUT INSIDE KIDDER THE KLIEBERT MATTER IS FAR MORE UNSETTLING SOME EMPLOYEES ARE TERRIFIED OF THE MAN WHO CALLS HIMSELF THE KLIEB KIDDER HAS SPENT MORE THAN 1 MILLION ON PRIVATE INVESTIGATORS WHO FOR A TIME TRACKED MR KLIEBERT'S EVERY MOVE EVEN FOLLOWING HIM ON A VACATION TO THE CARIBBEAN EARLIER THIS YEAR KIDDER OFFICIALS DECLINED TO PUBLICLY COMMENT FOR THIS ARTICLE THOUGH COMPLAINTS BY KIDDER EMPLOYEES PRODDED THE DISTRICT ATTORNEY TO FILE THE CRIMINAL CASE AGAINST MR KLIEBERT THE FIRM NOW SAYS IT FEARS ANY PUBLICITY COULD TRIGGER MR KLIEBERT TO ACT ON HIS ALLEGED THREATS THE KLIEBERT CASE IS A BIZARRE EXAMPLE OF THE TROUBLE A DISGRUNTLED EXEMPLOYEE CAN POSE FOR HIS OR HER FORMER FIRM MOST PEOPLE WHO ARE FIRED GO QUIETLY BUT SOME MAKE THREATS AND A TINY MINORITY OF THEM ACTUALLY TRY TO CARRY OUT THOSE THREATS EARLIER THIS MONTH A FIRED TECHNICIAN AT A DURHAM NC ELECTRONICS PLANT WENT ON A RAMPAGE AND KILLED TWO FELLOW EMPLOYEES AND WOUNDED TWO OTHERS BEFORE KILLING HIMSELF THERE WERE PERHAPS A HALF DOZEN SIMILAR INCIDENTS NATIONWIDE IN 1993 IN MOST OF THE CASES WHERE THERE IS ACTUAL VIOLENCE THAT VIOLENCE USUALLY ISN'T PRECEDED BY THREATS PSYCHOLOGISTS WHO FOLLOW SUCH MATTERS SAY FOR EMPLOYERS THE CHALLENGE IS TO DIVINE THE SERIOUSNESS OF SUCH THREATS SO AS TO PROTECT EMPLOYEES WALL STREET IS SUSCEPTIBLE TO SUCH BEHAVIOR SOME PSYCHOLOGISTS SAY BECAUSE FIRMS THERE TYPICALLY HIRE TRADERS AND OTHERS WHO ARE BY NATURE AGGRESSIVE AND AMBITIOUS AND MAY HAVE FEW INTERESTS BEYOND THEIR JOBS MR KLIEBERT'S LIFE BEFORE KIDDER WAS UNEVENTFUL ASSOCIATES SAY AFTER GROWING UP IN THE QUIET NEW YORK CITY SUBURB OF MAPLEWOOD NJ JOHN VALENTINE KLIEBERT GRADUATED FROM COLUMBIA COLLEGE WITH A BACHELOR OF ARTS DEGREE IN ARCHITECTURE A LONER HE DISAPPEARED FOR LONG STRETCHES WHILE AT COLLEGE ASSOCIATES SAY HE IS UNMARRIED A TALL STOCKY MAN WITH STEELY BLUE EYES MR KLIEBERT CRAVES BEING THE CENTER OF ATTENTION AND LIKES TO BE IN CONTROL SOME PEOPLE WHO KNOW HIM SAY HE HAS TO BE THE RULER THE KING THE COMMANDANT SAYS VERA BEAUDIN SAEEDPOUR WHO ONCE JOINTLY OWNED A BUILDING WITH MR KLIEBERT IN BROOKLYN MR KLIEBERT SOMETIMES BECAME ANGRY AND VIOLENT ACCORDING TO MS SAEEDPOUR DIRECTOR OF THE KURDISH FOUNDATION OF AMERICA SHE SAYS SHE ONCE SAW HIM PICK UP A SMALL REFRIGERATOR IN A RAGE AND THROW IT DOWN A STAIRWAY AFTER A SPAT OVER EXPENSES IN 1991 MS SAEEDPOUR SAYS MR KLIEBERT MOVED OUT OF THE BUILDING THEY COOWNED BUT NOT BEFORE THREATENING HER HE WOULD TELL ME I COULD KILL YOU IN A MINUTE I COULD PICK YOU UP BY THE NECK AND DROP YOU' MS SAEEDPOUR 64 YEARS OLD RECALLS OF MS SAEEDPOUR'S ACCOUNT MR ROSENKRANTZ THE LAWYER SAYS THAT'S INACCURATE MR KLIEBERT HE ADDS IS NOT DANGEROUS HE'S NOT PSYCHOTIC HE SAYS MS SAEEDPOUR'S COMMENTS STEM FROM A SOURED FRIENDSHIP AND AN ONGOING DISPUTE WITH MR KLIEBERT OVER MONEY BEFORE JOINING KIDDER MR KLIEBERT MANAGED JOE'S HOMEMADE ICE CREAM A UNION NJ CONCERN AND HAD STINTS AS A SALESMAN FOR SAKS FIFTH AVENUE HE ALSO SOLD WALLBOARD FOR A DIVISION OF NATIONAL GYPSUM CO IN JULY 1982 KIDDER HIRED HIM AND HE EVENTUALLY SPECIALIZED IN SELLING REPOS OR REPURCHASE AGREEMENTS ESOTERIC FINANCING INSTRUMENTS KIDDER SAYS IT FIRED MR KLIEBERT LAST APRIL FOR INFLATING SALES COMMISSIONS ON A TRADE THAT'S WHEN THE ALLEGED HARASSING BEGAN KIDDER SAYS MR KLIEBERT SENT KIDDER EMPLOYEES DOLLS WITH PINS STUCK IN THEIR HEARTS KIDDER EMPLOYEES SAY THERE WERE NEVER ANY DOLLS WITH PINS IN THEM SAYS MR ROSENKRANTZ THEY WERE IN FACT SOME VERY INNOCUOUS CHRISTMAS GIFTS HE ADDS THAT THE CIRCUMSTANCES LEADING TO MR KLIEBERT'S DISMISSAL ARE OPEN TO QUESTION HE SAYS THAT UNTIL HIS FIRING MR KLIEBERT DID WELL AT KIDDER INDEED A CHECK WITH REGULATORS SHOWS THAT MR KLIEBERT WAS NEVER THE SUBJECT OF A DISCIPLINARY ACTION HIS LAWYER ADDS THAT HE WAS NEVER PREVIOUSLY ARRESTED ACCORDING TO THE CRIMINAL COMPLAINT MR KLIEBERT'S THREATS BUBBLED UP ABOUT A WEEK AFTER THANKSGIVING MR KLIEBERT CALLED RICHARD LAFERGOLA A KIDDER TRADER AND SAID HE HAD A LIST OF PEOPLE HE WANTED TO GET EVEN WITH AND THAT HE HAD PURCHASED A SHOTGUN WITH FOUR SHELLS THE COMPLAINT STATES DURING THE CALL THE COMPLAINT CONTINUES MR KLIEBERT TOLD MR LAFERGOLA HE WAS GOING TO GO TO THE KIDDER TRADING FLOOR DISGUISE HIMSELF AS A MESSENGER CARRYING LONGSTEM ROSES OR A GOLF BAG AND GET SEAN FARRELL TOM EGAN BRIAN FINKELSTEIN AND JOEL MCKOAN MESSRS FARRELL AND LAFERGOLA WERE ON VACATION AND COULDN'T BE REACHED FOR COMMENT MESSRS EGAN AND FINKELSTEIN DECLINED TO COMMENT ALL WORK IN KIDDER'S BONDTRADING OPERATIONS MR KLIEBERT THEN BEGAN SENDING LONGSTEM ROSES TO VARIOUS KIDDER SECRETARIES IN THE BONDTRADING AREA KIDDER EMPLOYEES SAY MR ROSENKRANTZ CONFIRMS THAT MR KLIEBERT SENT THE ROSES AND CHOCOLATES TOO BUT HE SAYS THESE WERE JUST YOUNG WOMEN THERE WHO HAD EITHER WORKED FOR OR WITH HIM IT WAS AROUND CHRISTMAS THERE WAS NOTHING UNTOWARD ABOUT THAT MR KLIEBERT HAS NEVER ACTED ON THE ALLEGED THREATS AND MR ROSENKRANTZ ASSERTS THAT KIDDER STOPPED HAVING MR KLIEBERT FOLLOWED IN FEBRUARY SAYS A KIDDER EXECUTIVE WE CAN'T FOLLOW SOMEONE FOR THE REST OF THEIR LIFE BUT KIDDER SAYS MR KLIEBERT HAS CONTINUED TO CONTACT KIDDER EMPLOYEES AS RECENTLY AS WEDNESDAY HE SENT WHAT KIDDER INSIDERS CHARACTERIZE AS INNOCUOUS FAXES TO SEVERAL KIDDER SECRETARIES FURTHERMORE MR KLIEBERT HAS BOUGHT SHARES OF GE STOCK AND HAD THREATENED TO EXPOSE A BIG BOND SCANDAL APPARENTLY UNRELATED TO THE JETT MESS AT WEDNESDAY'S GE ANNUAL MEETING IN RALEIGH NC KIDDER EXECUTIVES SAY MR KLIEBERT FILLED OUT A PROXY CARD ATTENDED THE MEETING BUT DIDN'T SPEAK UP THE EXECUTIVES SAY MR ROSENKRANTZ SAYS THAT HE CAN'T CONFIRM WHETHER MR KLIEBERT ATTENDED THE MEETING OR WHETHER HE THREATENED EXPOSE ANY SCANDAL BUT HE DENIES THAT MR KLIEBERT CONTINUES TO HAVE CONTACT WITH KIDDER EMPLOYEES AND A DISTRICT ATTORNEY'S SPOKESMAN SAYS THERE IS NO INDICATION THAT WE ARE AWARE OF THAT HE HAS VIOLATED HIS COURT ORDER MR KLIEBERT IS NO LONGER WORKING ON WALL STREET SAYS MR ROSENKRANTZ HE'S CONTEMPLATING VARIOUS VENTURES IN THE SECURITIES INDUSTRY MEANTIME SOME KIDDER STAFFERS SAY THEY ARE AFRAID TO WORK LATE OR COME TO THE OFFICE ON WEEKENDS WHEN WALL STREET IS VIRTUALLY DESERTED 9404290085 940429 VOTE BY AMD SHAREHOLDERS SEEKS POISON PILL'S REPEAL SUNNYVALE CALIF ADVANCED MICRO DEVICES INC UNEXPECTEDLY LOST A SHAREHOLDER VOTE OVER THE COMPANY'S POISONPILL TAKEOVER DEFENSE RAISING QUESTIONS OF SHAREHOLDER DISCONTENT WITH THE SEMICONDUCTOR MAKER THE SHAREHOLDER RESOLUTION WHICH WAS OPPOSED BY MANAGEMENT PASSED WEDNESDAY AT AMD'S ANNUAL MEETING THOUGH NOT BINDING ON THE COMPANY THE MEASURE ASKS AMD'S BOARD TO REPEAL ITS 1990 POISONPILL PLAN OR PUT IT TO A SHAREHOLDER VOTE AT A SPECIAL MEETING POISON PILLS GIVE SHAREHOLDERS RIGHTS TO BUY STOCK AT A DISCOUNT FROM THE MARKET PRICE IN THE EVENT OF A TAKEOVER DILUTING THE VALUE AND VOTING POWER OF A HOSTILE ACQUIRER'S SHARES JACK GERAGHTY AN ANALYST AT CS FIRST BOSTON SPECULATED THAT AMD'S VOTE PROBABLY REFLECTS GENERAL OPPOSITION TO THE PLANS NOT FACTORS SPECIFIC TO AMD BUT PEG O'HARA DIRECTOR OF COMMUNICATIONS AT IRRC SAID ANTIPOISONPILL PLANS HAVE TENDED TO WIN AT COMPANIES WHERE INVESTORS HAVE OTHER COMPLAINTS IN AMD'S CASE INVESTORS SUCH AS THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM HAVE COMPLAINED ABOUT AMD'S PAST FINANCIAL PERFORMANCE AND THE COMPENSATION OF ITS CHIEF EXECUTIVE OFFICER AMD SAID IN A STATEMENT THAT THE BOARD WILL STUDY THE STOCKHOLDERS RESOLUTION AND DO WHATEVER IS APPROPRIATE AND IN THE INTERESTS OF THE CORPORATION AND ITS STOCKHOLDERS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE AMD SHARES FELL 875 CENTS TO 26 9404290084 940429 KEMPER SAYS IT'S OPEN TO DEAL WITH GE BUT INSISTS ON HIGHER OFFER BEFORE TALKS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL KEMPER CORP SAID FOR THE FIRST TIME THAT IT IS WILLING TO DISCUSS A MERGER WITH GE CAPITAL CORP BUT WANTS A HIGHER BID FIRST HOWEVER THE GENERAL ELECTRIC CO UNIT REPEATED THAT IT WON'T RAISE ITS 55ASHARE OR 22 BILLION BID UNLESS KEMPER FIRST OPENS ITS BOOKS WE WILL NOT STAND IN THE WAY OF A SALE OF KEMPER AT THE RIGHT PRICE WROTE KEMPER'S CHAIRMAN DAVID MATHIS IN A LETTER TO GE UNTIL NOW KEMPER HAS REFUSED TO TALK TO GE ARGUING THAT IT CAN DO MORE FOR SHAREHOLDERS AS AN INDEPENDENT COMPANY MR MATHIS'S STATEMENT REPRESENTS A SOFTENING IN KEMPER'S POSITION WHICH FOLLOWS WEEKS OF PRESSURE FROM SHAREHOLDERS TO SEEK A BETTER OFFER FROM GE MEANWHILE KEMPER AND ITS ADVISERS HAVE TALKED WITH A NUMBER OF POSSIBLE FRIENDLY BIDDERS IN ADDITION TO ALLIANZ AG A GERMAN INSURER KEMPER ALSO HAS HAD CONVERSATIONS WITH TRAVELERS INC BUT IT ISN'T CLEAR WHETHER ANY OF THE OTHERS ARE WILLING TO MAKE A RIVAL BID AGAINST GE THERE ARE A GOOD NUMBER OF PEOPLE INTERESTED SAID A PERSON CLOSE TO KEMPER IN WHAT TRADERS PERCEIVED AS A CARROT BEING EXTENDED TO KEMPER SHAREHOLDERS GE MADE A TANTALIZING REFERENCE TO ITS ENORMOUS FINANCIAL RESOURCES WE HAVE THE MONEY AVAILABLE TO PAY FOR ANY PRICE WE AGREE TO WROTE GE CAPITAL'S PRESIDENT GARY WENDT IN A LETTER TO MR MATHIS YOUR SHAREHOLDERS CAN BE REWARDED IF YOU WILL STOP STONEWALLING AND BEGIN RESPONSIBLE NEGOTIATIONS TRADERS CHEERED THE REFERENCE TO BEING REWARDED THE LETTER GAVE YOU A WARM FEELING SAID ONE INVESTOR GE REMINDED KEMPER THAT IT HAS LOTS OF MONEY MR WENDT ALSO SENT HIS LETTER TO KEMPER'S BOARD MEMBERS TO ASSURE THEY ARE AWARE OF YOUR CONTINUED FAILURE TO RESPOND TO OUR REQUEST ALTHOUGH SOME SHAREHOLDERS HAVE ENCOURAGED KEMPER TO NEGOTIATE WITH GE IMMEDIATELY FOR FEAR GE MIGHT WALK AWAY KEMPER INSISTS ON HOLDING OUT TO OBTAIN A HIGHER OFFER WE HAVE NO OBLIGATION AND ARE NOT INCLINED TO LET YOU EMBARK ON A DUEDILIGENCE FORAY MERELY IN THE HOPE YOU MIGHT RAISE YOUR BID TO SOME UNSPECIFIED LEVEL SAID MR MATHIS IF YOU HAVE AN OFFER THAT MORE FULLY REFLECTS KEMPER'S VALUE YOU ARE ALWAYS FREE TO MAKE IT THE COLDSHOULDER TECHNIQUE HAS ALREADY PRODUCED RESULTS IN ITS INITIAL CONVERSATIONS WITH KEMPER GE OFFERED ONLY 45 A SHARE OR JUST A FEW DOLLARS ABOVE KEMPER'S STOCK PRICE WHEN KEMPER REFUSED TO NEGOTIATE GE RAISED ITS BID TO 55 A SHARE AND MADE THE PROPOSAL PUBLIC PEOPLE CLOSE TO GE SAID IT WOULD SERVE NO POINT TO RAISE THE BID ABOVE 55 WITHOUT KEMPER FIRST GIVING IT SOMETHING IN RETURN SPECIFICALLY A ONEWEEK LOOK AT THE FINANCIAL RECORDS OF KEMPER'S REALESTATE INVESTMENTS THEY SAY THEY ARE PUZZLED AT HOW KEMPER SEEMS WILLING TO NEGOTIATE BUT THAT EFFORTS TO CONTACT THE COMPANY BOTH DIRECTLY AND THROUGH ITS ADVISERS ARE MET WITH AN ICY SILENCE MEANWHILE KEMPER REPORTED FIRSTQUARTER EARNINGS THAT WERE SLIGHTLY STRONGER THAN EXPECTED WHICH WILL HELP IN ITS ARGUMENT THAT GE HAS OFFERED A LOWBALL BID KEMPER REPORTED NET EARNINGS OF 504 MILLION OR 150 A SHARE COMPARED WITH 122 MILLION OR 21 CENTS A SHARE A YEAR EARLIER ANALYSTS SAID THE MORE IMPORTANT FIGURE IS WHAT KEMPER EARNED FROM OPERATIONS WHICH EXCLUDES CAPITAL GAINS THE COMPANY SAID IT EARNED 87 CENTS A SHARE COMPARED WITH 17 CENTS A SHARE LAST YEAR LAST WEEK KEMPER SAID IT WOULD EARN MORE THAN 80 CENTS A SHARE ON OPERATIONS BUT DIDN'T SAY HOW MUCH MORE IT WAS A DECENT QUARTER SAID MICHAEL LEWIS AN ANALYST WITH DEAN WITTER DISCOVER & CO MR LEWIS ARGUES GE SHOULD BID FROM 65 TO 70 A SHARE CONSIDERING THE STRATEGIC FIT BETWEEN GE CAPITAL AND KEMPER KEMPER ENGAGES IN THE MUTUALFUND AND LIFEINSURANCE BUSINESSES AND LIKE GE CAPITAL OWNS A BROKERAGE FIRM GE OWNS KIDDER PEABODY & CO AND IS IN THE ASSETMANAGEMENT BUSINESS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE KEMPER FELL TO 57375 DOWN 125 CENTS GE'S LETTER AND KEMPER'S EARNINGS REPORT WERE DISCLOSED BEFORE THE MARKET CLOSE BUT KEMPER'S RESPONSE CAME AFTER THE CLOSE THE STRONG EARNINGS COME TWO WEEKS BEFORE KEMPER SHAREHOLDERS VOTE ON THE FATE OF KEMPER AT THE ANNUAL MEETING ON MAY 11 SHAREHOLDERS ARE BEING ASKED TO VOTE ON WHETHER TO INSTALL FOUR MEMBERS NOMINATED BY KEMPER TO ITS 13MEMBER BOARD OR FOUR NOMINATED BY GE GE RECEIVED A BOOST YESTERDAY WHEN A PROXYADVISORY FIRM RECOMMENDED VOTING IN FAVOR OF GE A VOTE FOR GE WOULD MAKE CLEAR THAT THE SHAREHOLDERS WANT KEMPER TO NEGOTIATE AS HIGH A POSSIBLE PRICE WITH GE OR ANOTHER POTENTIAL BUYER WROTE DAVID DRAKE A SENIOR ANALYST WITH INSTITUTIONAL SHAREHOLDER SERVICES INC A PROXYADVISORY FIRM IN MARYLAND MR DRAKE SAID THE FIRM ADVISES 200 INSTITUTIONAL CLIENTS MANY OF WHOM OWN STOCK IN KEMPER 9404290083 940429 TURKEY WEIGHS CHOICES OF PRIVATIZATION WHICH COMPANIES AND JOBS SHOULD BE SACRIFICED BY JAMES M DORSEY SPECIAL TO THE WALL STREET JOURNAL EREGLI TURKEY NICKNAMED MR STEEL ILHAMI ACAR STANDS AT A CROSSROADS OF PRIME MINISTER TANSU CILLER'S EFFORT TO RADICALLY REDUCE HER GOVERNMENT'S INVOLVEMENT IN TURKEY'S AILING ECONOMY MR ACAR A SENIOR EXECUTIVE AT EREGLI IRON & STEEL WORKS CO ALSO KNOWN AS ERDEMIR AN ULTRAMODERN COMPLEX 240 KILOMETERS NORTHEAST OF ISTANBUL IS INVOLVED IN BOTH THE EASIEST AND THE MOST DIFFICULT ASPECTS OF MRS CILLER'S AMBITIOUS PLANS TO PRIVATIZE SOME OF TURKEY'S HUGE STATE ECONOMIC ENTERPRISES AND CLOSE DOWN OTHERS IN JULY THE GOVERNMENT HOPES TO SELL ITS 51 STAKE IN ERDEMIR FOR AT LEAST 500 MILLION MARKING THE FIRST MAJOR SALE IN MRS CILLER'S CAMPAIGN TO EARN 35 BILLION THIS YEAR BY SELLING STATE HOLDINGS IN SECTORS INCLUDING TELECOMMUNICATIONS ENERGY TRANSPORT PETROCHEMICALS AGRICULTURE TEXTILES AND TOURISM OPTIMISTS PREDICT ERDEMIR WILL FETCH MORE THAN 1 BILLION NOTING THAT ITS TWOMILLIONTON PRODUCTION CAPACITY MAY RISE TO THREE MILLION TONS BY 1996 AMID A 15 BILLION SIXYEAR INVESTMENT PROGRAM BUT MR ACAR ALSO IS FIGHTING TO SAVE KARABUK IRON & STEEL CO AN OBSOLETE UNPROFITABLE COMPLEX 120 KILOMETERS EAST OF EREGLI THAT SYMBOLIZES TURKEY'S TOPHEAVY INEFFICIENT PUBLIC SECTOR KARABUK FIGURES PROMINENTLY ON THE LIST OF COMPANIES SLATED FOR CLOSURE AS PART OF AUSTERITY MEASURES TO REDUCE TURKEY'S 43 BILLION BUDGET DEFICIT YET LESS THAN A MONTH AFTER UNVEILING THE MEASURES TURKISH OFFICIALS ALREADY ARE BACKTRACKING ON THE SCOPE OF PRIVATIZATION MRS CILLER'S DECLARED GOAL OF 35 BILLION IN 1994 PRIVATIZATION REVENUE IS PROVING TO BE UNREALISTIC AND OFFICIALS CURRENTLY EXPECT 2 BILLION AT BEST AND OTHERS LIKE MR ACAR SAY CLOSING FACILITIES LIKE KARABUK WILL HAVE GRAVE SOCIAL CONSEQUENCES THE PROBLEM IS THAT THE PRIME MINISTER HASN'T THOUGHT HER PRIVATIZATION EFFORTS THROUGH SAYS MR ACAR CLOSING KARABUK WILL CAUSE HUGE SOCIAL PROBLEMS THOUGH IT HAS ONLY 7000 EMPLOYEES KARABUK'S PROPOSED CLOSURE WILL PUT AS MANY AS 80000 PEOPLE OUT OF JOBS MR ACAR SAYS WITH NO OTHER ECONOMIC ACTIVITY IN THE AREA MR ACAR ARGUES THAT THE REGION IS TOTALLY DEPENDENT ON THE IRONANDSTEEL PLANT MOREOVER HE SAYS MRS CILLER'S AUSTERITY MEASURES INCLUDE A PLAN TO BUILD A HARBOR NEAR KARABUK THAT COULD BOOST KARABUK'S FORTUNES TEZCAM YARAMANCI CHAIRMAN OF THE GOVERNMENT OFFICE IN CHARGE OF PRIVATIZATION PREDICTS THAT ONLY 50000 PEOPLE NATIONWIDE WILL LOSE JOBS THIS YEAR DUE TO THE CLOSURE OR SALE OF STATEOWNED COMPANIES WIDELY VIEWED AS THE ARCHITECT OF MRS CILLER'S AMBITIOUS PRIVATIZATION PROGRAM MR YARAMANCI IS CONCERNED EXCLUSIVELY WITH THE ESTIMATED 15000 PEOPLE WHO WILL BE LEFT UNEMPLOYED BY PRIVATIZATION THOSE WHO LOSE JOBS DUE TO PLANT CLOSURES ARE THE TREASURY'S RESPONSIBILITY HE SAYS WE HAVE REDEFINED THE PURPOSE OF PRIVATIZATION PRIVATIZATION IS NO LONGER THE SEARCH FOR MONEY TO FUND PROJECTS BUT THE SEARCH FOR INCREASED PRODUCTIVITY OF ECONOMIC ENTITIES MR YARAMANCI SAYS PRIVATIZATION REVENUE WILL HELP FUND THE SALE OF OTHER PUBLIC COMPANIES AND COMPENSATE THOSE WHO LOSE JOBS IN THE PROCESS THIS IS AN INSTRUMENT TO CONVINCE THE UNIONS TO COOPERATE HE SAYS THE PRIVATIZATION AGENCY'S FIRST PRIORITY IS TO REDUCE THE BURDEN ON THE GOVERNMENT BUDGET HE SAYS AN EXCEPTION TO THE RULE IS THE SALE OF THE PROFITABLE TELECOMMUNICATIONS ARM OF THE STATE'S POSTAL TELEPHONE & TELEGRAPH BECAUSE THE GOVERNMENT CAN'T AFFORD THE NECESSARY 300 MILLION IN ANNUAL TECHNOLOGY INVESTMENTS WITH TELECOMMUNICATIONS AND THE TURKISH ELECTRICITY CO ON THE BLOCK NEXT YEAR MR YARAMANCI PROMISES THAT PRIVATIZATION REVENUE WILL JUMP TO 18 BILLION IN 1995 PRIVATIZATION IS WHAT WILL ATTRACT ATTENTION IN THE TURKISH ECONOMY OVER THE COMING YEAR HE SAYS THE WHOLE GOVERNMENT IS PUTTING MUCH POWER AND EFFORT INTO PRIVATIZATION WE WANT TO COMPENSATE FOR THE DELAYS OF THE PAST 10 YEARS BY EARLY NEXT MONTH TURKEY'S PARLIAMENT IS EXPECTED TO PASS LEGISLATION SETTING LEGAL PARAMETERS FOR PRIVATIZATION AND REMOVING OBSTACLES LIKE THE BAN ON THE SALE OF PUBLICLY OWNED LANDS AND ENTERPRISES IN STRATEGIC SECTORS HEIGHTENED GOVERNMENT ACTIVITY HAS ENHANCED CONFIDENCE IN MRS CILLER'S WILLINGNESS TO PUSH AHEAD WITH HER TOUGH AUSTERITY MEASURES DESPITE THE POLITICAL AND SOCIAL RISKS FURTHER BOOSTING CONFIDENCE MRS CILLER EXPECTS TO CONCLUDE THIS MONTH A STANDBY FINANCING ARRANGEMENT WITH THE INTERNATIONAL MONETARY FUND THEY ARE MOVING FORWARD WITH THE BIG DEALS THE ONES THAT WILL INVOLVE FOREIGN BANKS SAYS GREG KIEZ A PRIVATIZATION EXPERT AT GLOBAL SECURITIES INC ONE OF TURKEY'S TOP BROKERAGE HOUSES LAST WEEK THE GOVERNMENT TOOK PROPOSALS FOR THE SALE OF AIRLINE CATERER HAVAS AND SOLD AS MUCH AS 8 MILLION IN TURKISH AIRLINES SHARES ON THE ISTANBUL STOCK EXCHANGE AT THE SAME TIME THE GOVERNMENT WELCOMED A PROPOSAL BY THE INTERNATIONAL FINANCE CORP THE COMMERCIAL ARM OF THE WORLD BANK TO BUY 15 OF TURKISH AIRLINES CONTINGENT ON THE PRIVATIZATION BEING COMPLETED IN 12 MONTHS THE BEAUTY OF THE PROPOSAL IS THAT IT GIVES TURKISH AIRLINES AN IMMEDIATE CASH INJECTION AND AN INCENTIVE TO MOVE QUICKLY SAYS IFC TURKEY REPRESENTATIVE KHOSROW ZAMANI BUT WHEN IT COMES TO IRONANDSTEEL PRODUCTION MR ZAMANI'S VIEWS DIVERGE SHARPLY FROM MR YARAMANCI'S EVEN ERDEMIR WILL SUFFER IN PROFITABILITY ONCE TURKEY ENTERS A CUSTOMS UNION WITH THE EUROPEAN UNION NEXT YEAR AND NO LONGER CAN PROTECT ITS INDUSTRY FROM COMPETITION MR ZAMANI SAYS THERE IS EXCESS CAPACITY WORLDWIDE HE SAYS ADDS EMRE YIGIT GLOBAL SECURITIES' HEAD OF RESEARCH NOBODY WOULD CREATE A PLANT LIKE EREGLI TODAY IT'S TOO BIG THAT SORT OF THINKING DOESN'T DETER MR ACAR DESPITE VARIOUS REPORTS INCLUDING ONE BY THE WORLD BANK URGING KARABUK'S CLOSURE MR ACAR CONCLUDES THAT KARABUK ISN'T BEYOND SALVATION AND HAS PRODUCED HIS OWN REPORT TO PROVE IT UNDER HIS PLAN DEVISED WITH A MACHINE MANUFACTURER WHO PROMISES TO MAKE KARABUK PROFITABLE WITHIN A YEAR THE GOVERNMENT WOULD WRITE OFF KARABUK'S 410 MILLION DEBT TO STATEOWNED BANKS MR ACAR AND THE INDUSTRIALIST WHO REQUESTS ANONYMITY WOULD DISMISS ONLY HALF THE WORK FORCE REDUCING THE GOVERNMENT'S SEVERANCE AND PENSION PAYMENTS TO ROUGHLY 40 MILLION FROM AN ESTIMATED 80 MILLION MR ACAR'S PLAN TO REHABILITATE KARABUK HINGES ON MRS CILLER'S PROMISE THIS MONTH TO BUILD A BLACK SEA PORT AT THE MOUTH OF THE NEARBY FYLIOS RIVER AS PART OF HER BID TO CREATE 21000 JOBS FOR MINERS AND OTHERS DISAFFECTED BY THE CLOSURE OF UNPROFITABLE STATE ENTERPRISES KARABUK'S ANNUAL LOSSES OF 50 MILLION TO 60 MILLION ARE IN PART DUE TO ITS LACK OF ACCESS TO A SEAPORT MR ACAR SAYS CILLER NEVER THOUGHT OF THE POSITIVE CONSEQUENCES FOR KARABUK WHEN SHE ANNOUNCED HER PLANS FOR A PORT MR ACAR SAYS ADDS THE MANUFACTURER THE FYLIOS HARBOR MAKES THE DIFFERENCE WITH THAT KARABUK BECOMES PROFITORIENTED TO FINANCE THE 100 MILLION NEEDED TO TURN KARABUK AROUND THE INDUSTRIALIST WANTS THE GOVERNMENT TO GIVE HIM A FIVEYEAR 50 MILLION LOAN IN ADDITION HE HOPES FOR FINANCING FROM COMMERCIAL BANKS AND INTERNATIONAL LENDERS TO BUY SECONDHAND MODERN EQUIPMENT FROM ERDEMIR BUT THOSE HOPES MAY BE MISLAID COMMERCIAL BANKS ARE UNLIKELY TO JUMP ON THIS ONE ONE INTERNATIONAL BANKER SAYS 9404290082 940429 WHO'S NEWS DIAL PAGE INC DIAL PAGE INC GREENVILLE SC E LEE KAYWORK 49 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF A NEW SUBSIDIARY DIAL CALL COMMUNICATIONS INC OF THIS TELECOMMUNICATIONS COMPANY MR KAYWORK HAD BEEN CORPORATE VICE PRESIDENT AT LIN BROADCASTING CORP A SUBSIDIARY OF MCCAW CELLULAR COMMUNICATIONS INC 9404290081 940429 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION GIANT GROUP LTD'S GIANT CEMENT HOLDING INC UNIT AN INITIAL OFFERING OF 10 MILLION COMMON SHARES VIA PAINEWEBBER INC LAZERTRON CORP AN INITIAL OFFERING OF 13 MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 195000 SHARES VIA VAN KASPER & CO MONTEREY PASTA CO AN OFFERING OF 23 MILLION COMMON SHARES VIA ROBERTSON STEPHENS & CO AND DAIN BOSWORTH INC NEW PLAN REALTY TRUST A SHELF OFFERING OF UP TO 250 MILLION OF DEBT SECURITIES PREFERRED SHARES DEPOSITARY SHARES COMMON SHARES AND WARRANTS 9404290080 940429 ECONOMY ECONOMY GREW AT 26 RATE IN FIRST QUARTER SHARP SLOWDOWN SUGGESTS FEARS OF OVERHEATING MAY NOT BE WARRANTED BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ECONOMY EXPANDED AT A SURPRISINGLY SLOW 26 ANNUAL RATE IN THE FIRST QUARTER THE COMMERCE DEPARTMENT SAID SUGGESTING IT IS NOWHERE NEAR OVERHEATING AS SOME MARKET PARTICIPANTS HAVE FEARED THE GROWTH WAS MUCH SLOWER THAN THE FAST 7 FOURTHQUARTER PACE AND WAS LESS THAN THE 35 OR SO THAT MANY ECONOMISTS HAD EXPECTED BUT IT WAS STILL STRONG ENOUGH TO CREATE LOTS OF NEW JOBS AND HELP BOOST CONSUMER SENTIMENT ABOUT ECONOMIC CONDITIONS MOREOVER FOR THE REST OF THE YEAR ANALYSTS SAID THE ECONOMY APPEARS HEADED FOR MORE CONTINUED MODERATE GROWTH IN THE 3 RANGE WHICH SHOULD KEEP INFLATION UNDER CONTROL HOWEVER BROAD INFLATION MEASURES WITHIN THE COMMERCE DEPARTMENT'S REPORT SHOWED ACCELERATING INCREASES OVER THE QUARTER THE FIXEDWEIGHTED PRICE INDEX ROSE AT A 29 ANNUAL RATE IN THE FIRST QUARTER COMPARED WITH A 23 RATE IN THE FOURTH QUARTER OF 1993 THE LATEST INCREASE IS STILL QUITE MODERATE HOWEVER THE INDEX ROSE 31 IN 1993 AND 33 IN 1992 ANALYSTS NOTED THAT THE INDEX TENDS TO RISE MORE IN THE FIRST QUARTER AND THAT OTHER INFLATION INDICATORS NOTABLY THE CONSUMER PRICE INDEX ARE STILL QUITE TAME LAURA TYSON WHO HEADS THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS SAID THE FIGURES WERE ENCOURAGING TODAY'S REPORT SHOULD CALM FEARS THAT THE ECONOMY IS GROWING AT AN UNSUSTAINABLY RAPID RATE OR FEARS THAT INFLATION IS ABOUT TO SPIKE UPWARD MS TYSON SAID AT A WHITE HOUSE PRESS BRIEFING BUT THAT ISN'T WHAT HAPPENED YESTERDAY THE MARKETS SEEMED TO DISCOUNT THE EVIDENCE OF MODEST GROWTH AND FOCUS INSTEAD ON THE HIGHERTHANEXPECTED INFLATION FIGURES THE DOW JONES INDUSTRIAL AVERAGE FINISHED THE DAY DOWN 3123 WHILE THE 30YEAR TREASURY BOND PLUMMETED 1 3/4 POINTS THERE ARE THREE MAIN REASONS THAT GROSS DOMESTIC PRODUCT OR THE VALUE OF GOODS AND SERVICES PRODUCED IN THE US SLOWED SO MUCH DURING THE FIRST QUARTER FOR ONE DREADFUL WINTER WEATHER ACROSS A LARGE PORTION OF THE COUNTRY HELPED HOLD DOWN CONSTRUCTION ACTIVITY INVESTMENT IN STRUCTURES FELL AT A 67 ANNUAL RATE IN THE FIRST QUARTER AFTER A 44 RISE IN THE LAST QUARTER OF 1993 THE INCREASE IN RESIDENTIAL INVESTMENT SLOWED TO A 55 RATE AFTER A DOUBLEDIGIT RISE IN THE PREVIOUS QUARTER GARY CIMINERO CHIEF ECONOMIST OF FLEET FINANCIAL GROUP IN PROVIDENCE RI SAID HE EXPECTS CONSTRUCTION TO PICK UP IN THE SECOND QUARTER ALTHOUGH HOUSING WON'T CARRY NEARLY THE THRUST IT HAD IN THE FOURTH QUARTER BECAUSE OF HIGHER INTEREST RATES THE WEATHER MAY HAVE ALSO DAMPED CONSUMER SPENDING WHICH ROSE AT A 38 RATE COMPARED WITH A 44 RATE IN THE FOURTH PERIOD THE COMMERCE DEPARTMENT'S CHIEF ECONOMIST LEWIS ALEXANDER SAID IT WAS DIFFICULT TO TELL JUST HOW MUCH THE BAD WEATHER HELD BACK FIRSTQUARTER GROWTH ALSO WORKING TO SLOW GROWTH WERE BIG DECLINES IN EXPORTS AND FEDERAL SPENDING EXPORTS FELL AT A 15 ANNUAL RATE AFTER A LARGE INCREASE IN THE 1993 FOURTH QUARTER ANALYSTS VIEWED THE FOURTH QUARTER PACE AS UNSUSTAINABLE GIVEN THE WEAKNESS OF MANY MAJOR US TRADING PARTNERS MUCH OF THE GROWTH THAT DID OCCUR IN THE FIRST QUARTER WAS THE RESULT OF A BUILDUP IN INVENTORIES STOCKPILES ADDED 22 BILLION TO GROWTH COMPARED WITH JUST 2 BILLION THE QUARTER BEFORE AS A RESULT OUTPUT GROWTH MINUS INVENTORY CHANGE A MEASURE OF DEMAND INCREASED AT ONLY A 09 ANNUAL RATE FOLLOWING A STRONG 68 RATE OF INCREASE IN THE FOURTH QUARTER SOME OF THE INVENTORY ACCUMULATION MAY HAVE BEEN INVOLUNTARY DUE TO BAD WEATHER SAID GORDON RICHARDS CHIEF ECONOMIST FOR THE NATIONAL ASSOCIATION OF MANUFACTURERS MR RICHARDS SAID SOME WAS ALSO CONCENTRATED IN SPECIFIC SECTORS SUCH AS AUTOS WHICH WILL BE SOLD IN FUTURE QUARTERS JAMES O'SULLIVAN ECONOMIST FOR MORGAN GUARANTY TRUST CO IN NEW YORK SAID THAT THE JUSTINTIME STOCKPILE TREND HAD BEEN CARRIED TO AN EXTREME AND INVENTORIES HAD TO BE BUILT UP AGAIN INVESTMENT IN CAPITAL EQUIPMENT CONTINUED TO BE STRONG IN THE FIRST QUARTER RISING AT A 151 RATE COMPARED WITH A RATE OF MORE THAN 25 IN THE FOURTH QUARTER CAPITAL SPENDING IS EXPECTED TO STAY FAIRLY STRONG DESPITE HIGHER INTEREST RATES AS COMPANIES LOOK TO INCREASE PRODUCTIVITY AND EXPAND CAPACITY MR O'SULLIVAN SAID STRONG PROFIT GROWTH WILL ENABLE COMPANIES TO SPEND MORE MONEY ON NEW EQUIPMENT THE GDP FIGURES WILL BE REVISED TWICE IN THE COMING MONTHS TO INCLUDE NEW INFORMATION ON INVENTORIES AND TRADE SEPARATELY THE COMMERCE DEPARTMENT SAID ORDERS FOR DURABLE GOODS ROSE 04 IN MARCH HELD BACK BY BIG DECLINES IN DEFENSE AND TRANSPORTATION ORDERS THESE ORDERS VARY WIDELY FROM MONTH TO MONTH ALSO THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR UNEMPLOYMENT BENEFITS FELL BY 31000 IN THE WEEK ENDED APRIL 23 TO 333000 THE FOURWEEK MOVING AVERAGE OF CLAIMS CONSIDERED A BETTER MARKER FOR LABOR MARKET CONDITIONS ROSE BY 500 TO 345750 ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE SOME OF THE MAJOR COMPONENTS OF THE GROSS DOMESTIC PRODUCT EXPRESSED IN SEASONALLY ADJUSTED ANNUAL RATES IN BILLIONS OF CONSTANT 1987 DOLLARS HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES ON NEW ORDERS FOR DURABLE GOODS SEASONALLY ADJUSTED IN BILLIONS 9404290079 940429 PFIZER TO INCREASE RESEARCH SPENDING 11 THIS YEAR BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL GROTON CONN PFIZER INC SAID IT PLANS TO INCREASE RESEARCHANDDEVELOPMENT SPENDING AT LEAST 11 THIS YEAR TO 11 BILLION CITING HEART DISEASE CANCER ALZHEIMER'S DIABETES AND ASTHMA AS FOCAL AREAS PFIZER'S RESEARCHANDDEVELOPMENT GOALS SPELLED OUT AT THE DRUG COMPANY'S ANNUAL MEETING ARE AMONG THE MOST AMBITIOUS IN THE PHARMACEUTICAL INDUSTRY MANY OTHER DRUG COMPANIES HAVE SAID PRICE PRESSURE FROM BIG CUSTOMERS AND THE GOVERNMENT COULD CAUSE THEM TO SHRINK RESEARCH SPENDING SOON PFIZER'S CHAIRMAN WILLIAM C STEERE JR ACKNOWLEDGED THAT PRICECONSCIOUS HEALTHMAINTENANCE ORGANIZATIONS AND OTHER MANAGEDCARE ENTITIES ARE BRINGING ABOUT TRULY RADICAL MARKETPLACE CHANGES BUT IF WE DON'T CONTINUE TO DISCOVER AND DEVELOP NEW PRODUCTS ALL THE DISTRIBUTION SYSTEMS IN THE WORLD WON'T BE ENOUGH TO ENABLE US TO PROSPER JOHN NIBLACK PFIZER'S EXECUTIVE VICE PRESIDENT FOR RESEARCH AND DEVELOPMENT SAID THE NEW YORKBASED COMPANY HAS 19 POTENTIAL NEW DRUGS OR LINE EXTENSIONS IN LATESTAGE CLINICAL TRIALS AMONG THE MOST PROMISING IS ARTHRITIS TREATMENT TENIDAP IN RESPONSE TO SHAREHOLDER QUESTIONS MR STEERE SAID IT IS UNLIKELY PFIZER WILL BUY A GENERICDRUG MAKER EVEN THOUGH SEVERAL COMPETITORS HAVE DONE SO HE SAID EXPANSION INTO GENERICS IS A SHORTTERM STRATEGY THAT AMOUNTS TO CHASING A SHRINKING MARKET AT AN EVERLOWER PRICE MR STEERE ALSO CONTINUED THE DRUG INDUSTRY'S CRITICISM OF THE WHITE HOUSE'S HEALTHCARE OVERHAUL PLAN CALLING IT ESSENTIALLY A RATIONING PLAN PROVISIONS FOR PRICE CONTROLS WOULD REDUCE OR EVEN ELIMINATE THE INCENTIVE TO INVEST IN HIGHRISK AREAS BUT MR STEERE SAID HE THINKS THE ADMINISTRATION MAY BE MOVING TO A MORE FLEXIBLE AND CONCILIATORY POSITION SEPARATELY PFIZER ANNOUNCED THE FOOD AND DRUG ADMINISTRATION APPROVED MARKETING OF GLUCOTROL XL AN ORAL DIABETES DRUG THE COMPANY SAID IT WOULD BEGIN MARKETING THE DRUG IMMEDIATELY UNDER A ROYALTYBEARING LICENSE FROM ALZA CORP WITH WHICH PFIZER DEVELOPED THE DRUG PFIZER ALSO SAID IT AGREED TO WORK WITH KLINGE PHARMA A GERMAN DRUG COMPANY ON THE JOINT DEVELOPMENT OF DROLOXIFINE AN EXPERIMENTAL DRUG FOR TREATING BREAST CANCER AND OSTEOPOROSIS PFIZER'S SHARES CLOSED AT 58125 UP 125 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9404290078 940429 US JOINS IN SUIT ACCUSING ROCKWELL OF COST MISCHARGES BY ROY J HARRIS JR STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES THE FEDERAL GOVERNMENT JOINING A CIVIL WHISTLEBLOWER LAWSUIT AGAINST ROCKWELL INTERNATIONAL CORP ALLEGED THAT THE COMPANY ENGAGED IN WIDESPREAD MISCHARGING OF COSTS FOR THE SPACE SHUTTLE AND OTHER NASA CONTRACTS THE GOVERNMENT ALLEGED THAT FROM 1983 UNTIL AT LEAST 1992 ROCKWELL'S SPACE TRANSPORTATION SYSTEMS DIVISION IN DOWNEY CALIF ENGAGED IN THE IMPROPER BILLING PRACTICES THE SUIT ALLEGED THE DOWNEY FACILITY SHIFTED TO THE SPACE SHUTTLE AND OTHER NASA ACCOUNTS SOME EXPENSES THAT HAD BEEN INCURRED IN SOCALLED FIXEDPRICE PROGRAMS SUCH AS MAKING PARTS AND EQUIPMENT FOR THE B1 AND B2 BOMBERS WHILE ROCKWELL RECEIVED A SET AMOUNT FOR ITS WORK ON THE BOMBERS REGARDLESS OF EXPENSES INCURRED THE SHUTTLE CONTRACTS ALLOW IT TO BE PAID FOR REIMBURSABLE COSTS NO SPECIFIC AMOUNT OF DAMAGES WAS CITED IN THE COMPLAINT BUT THE SUIT SEEKS TO TREBLE ANY DAMAGES THAT EVENTUALLY MAY BE FOUND IN SEAL BEACH CALIF A ROCKWELL SPOKESMAN SAID THE COMPANY'S OWN INVESTIGATION DID NOT FIND ANY EVIDENCE OF WRONGDOING ALTHOUGH THE COMPANY STUDY HAD BEEN BASED ON THE LIMITED INFORMATION THE GOVERNMENT GAVE US WHILE THE COMPLAINT WAS SEALED ROCKWELL NASA'S LARGEST CONTRACTOR HAS CONTRACTS OF MORE THAN 2 BILLION ANNUALLY THROUGH ITS SPACE SYSTEMS DIVISION JENNIFER BREMER THE ASSISTANT US ATTORNEY HANDLING THE GOVERNMENT'S CASE SAID SHE DIDN'T KNOW OF ANY CRIMINAL INVESTIGATION INTO THE ALLEGATIONS IN PREVIOUS UNRELATED CASES ROCKWELL PAID 14 MILLION IN 1992 TO SETTLE CHARGES THAT ITS COLLINS GOVERNMENT AVIONICS UNIT OVERBILLED THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION ON SHUTTLERELATED WORK IN 1989 THE COMPANY PLEADED GUILTY TO FEDERAL CHARGES IN CONNECTION WITH A DOUBLEBILLING SCHEME ON AN AIR FORCE CONTRACT THE LATEST GOVERNMENT ALLEGATIONS STEM FROM A SUIT FILED BY FORMER ROCKWELL MACHINIST DAVID VOSOUGHKIA OVER A YEAR AGO AND SEALED UNDER TERMS OF THE FEDERAL FALSE CLAIMS ACT THE ACT ENCOURAGES WORKERS TO DISCLOSE IMPROPER ACTIVITIES BY THEIR COMPANIES BY ALLOWING FOR SUBSTANTIAL RECOVERY BY THE PLAINTIFF SUSAN DURBIN MR VOSOUGHKIA'S ATTORNEY SAID THAT THE MISCHARGING THAT'S ALLEGED IN THE COMPLAINT WAS A VERY PERSISTENT PATTERN WHICH OFTEN INVOLVED SUPERVISORS DIRECTING WORKERS TO SHOW UP FOR MANDATORY OVERTIME WHEN THERE WAS NOTHING FOR THEM TO DO SHE SAID MR VOSOUGHKIA 41 YEARS OLD HAD WORKED AS A SUPERVISOR BUT EVENTUALLY FOUND HE COULDN'T STAND THE PRACTICES HE ENCOUNTERED AND RESIGNED TO BE A MACHINIST AGAIN HE WAS LAID OFF IN 1992 SHE SAID AND NOW HAS A HOMEREPAIR AND CONTRACTING BUSINESS ROCKWELL ALSO HAS BUSINESSES IN SUCH NONAEROSPACE AREAS AS PRINTING PRESSES PARTS FOR HEAVY VEHICLES AND INDUSTRIAL AUTOMATION 9404290077 940429 BRITAIN'S GLAXO SUES CIBAGEIGY OVER PATENT CASE INVOLVES GENERIC COPY OF ZANTAC ULCER DRUG STAKES CALLED ENORMOUS BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL LAUNCHING A CRUCIAL LEGAL MANEUVER IN US COURTS GLAXO HOLDINGS PLC SUED CIBAGEIGY AG AND TWO SMALL ALLIES FOR ALLEGED PATENT INFRINGEMENT IN THEIR PROPOSED DEVELOPMENT OF A GENERIC COPY OF GLAXO'S FLAGSHIP ANTIULCER DRUG ZANTAC GLAXO'S ACTION HAD BEEN EXPECTED SINCE CIBAGEIGY'S US GENERIC ARM GENEVA PHARMACEUTICALS INC APPLIED LAST MONTH FOR US FOOD AND DRUG ADMINISTRATION APPROVAL OF A GENERIC VERSION OF ZANTAC UNDER AN ACCELERATED PROCEDURE FOR APPROVAL OF GENERIC DRUGS CIBAGEIGY'S PRODUCT COULD REACH MARKETS AS EARLY AS JANUARY 1996 FOLLOWING THE DECEMBER 1995 EXPIRY OF ZANTAC'S ORIGINAL US PATENT BECAUSE GLAXO'S LEGAL CHALLENGE WAS INITIATED WITHIN 45 DAYS OF CIBAGEIGY'S FDA APPLICATION IT TRIGGERS A SPECIAL REGULATORY TIMETABLE THE PATENT DISPUTE COULD LANGUISH IN THE COURTS FOR YEARS BUT BARRING A DEFINITIVE COURT JUDGMENT CIBAGEIGY'S GENERIC ZANTAC APPLICATION WILL BE AUTOMATICALLY APPROVED IN 30 MONTHS OR SEPTEMBER 1996 THAT DEADLINE STILL WOULD WIN GLAXO A BRITISH CONCERN AN ADDITIONAL 10 MONTHS OF EXCLUSIVE MARKETING RIGHTS TO ZANTAC BEYOND PATENT EXPIRY AND SOME ANALYSTS DISMISSED THE LEGAL PROCEEDINGS AS A STALLING TACTIC INVESTORS SEEMED TO AGREE GLAXO STOCK CLIMBED TEN PENCE 151 CENTS TO 574 PENCE IN LATE LONDON TRADING THURSDAY BUT CLOSED DOWN FROM AN INTRADAY HIGH OF 582 PENCE THE MARKET IS TAKING THE VIEW THAT THIS IS A LEGAL PLOY TO DELAY FORM ONE ZANTAC SAID DUNCAN MOORE A LONDONBASED PHARMACEUTICAL ANALYST WITH MORGAN STANLEY & CO THE STAKES ARE ENORMOUS ZANTAC HAS ANNUAL US SALES OF 2 BILLION INDUSTRY ANALYSTS ESTIMATE THAT THE ADVENT OF GENERIC COMPETITION COULD SLASH REVENUE BY 50 TO 70 WITHIN A YEAR OF PATENT EXPIRY AND SEND GLAXO'S PRETAX PROFIT TUMBLING IN THE YEAR BEGINNING JULY 1 1995 BUT TANGLED PATENT RIGHTS TO ZANTAC'S ACTIVE INGREDIENT RANITIDINE HYDROCHLORIDE MAKE THE OUTCOME UNCERTAIN GLAXO HOLDS TWO US PATENTS WHICH EXPIRE IN 1995 AND 2002 RESPECTIVELY GLAXO HAS ALWAYS PRODUCED ZANTAC COMMERCIALLY IN THE FORM TWO VERSION WITH A LONGER PATENT LIFE CIBAGEIGY'S APPLICATION IS FOR A FORM ONE VERSION OF RANITIDINE BUT FDA APPROVAL HINGES ON THE SWISS COMPANY'S ABILITY TO PROVE THAT THE FORM ONE VERSION DOESN'T BREACH GLAXO'S REMAINING FORM TWO PATENT AT ANY STAGE OF MANUFACTURE GLAXO INSISTS COMMERCIAL MANUFACTURE OF A FORM ONE VERSION IS IMPOSSIBLE WITHOUT SUCH PATENT INFRINGEMENT MOREOVER GLAXO'S LAWSUIT RAISES PUZZLING QUESTIONS ABOUT SOME PREVIOUSLY UNDISCLOSED DETAILS IN CIBAGEIGY'S PLANS BESIDES GENEVA PHARMACEUTICALS GLAXO'S COMPLAINT NAMES AS CORESPONDENTS INTERCHEM TRADING CORP A US CHEMICAL DISTRIBUTOR AND UNION QUIMICO FAMACEUTICA SA OR UQUIFA A SPANISH CHEMICAL COMPANY ACCORDING TO A GLAXO SPOKESMAN CIBAGEIGY'S PLAN CALLS FOR UQUIFA TO MANUFACTURE THE GENERIC FORM ONE ZANTAC IN SPAIN AND IMPORT IT TO THE US AND THEN BY WAY OF INTERCHEM TRADING TO GENEVA MOREOVER WE BELIEVE UQUIFA CURRENTLY MANUFACTURES A FORM TWO VERSION OF ZANTAC IN SPAIN IN CLEAR BREACH OF GLAXO'S PATENT THE SPOKESMAN ADDED HE DIDN'T SAY WHERE UQUIFA'S FORM TWO ZANTAC IS BEING SOLD BUT THE OUTPUT COULD BE MARKETED IN A NUMBER OF COUNTRIES THAT DON'T RECOGNIZE INTELLECTUAL PROPERTY RIGHTS INDEED SPAIN AND PORTUGAL STILL DON'T ENFORCE THE SAME PATENT RIGHTS AS OTHER EUROPEAN UNION MEMBERS A LEGAL LOOPHOLE THAT IS CAUSING HEADACHES FOR SOME BIG INTERNATIONAL DRUG MAKERS WELLCOME PLC IS MIRED IN AN ACRIMONIOUS DISPUTE OVER A GENERIC VERSION OF AIDS DRUG RETROVIR WHICH PORTUGUESE AUTHORITIES RECENTLY ALLOWED ON THE MARKET THE RETROVIR COPY IS PRODUCED UNDER A LICENSE FROM APOTEX A CANADIAN GENERIC DRUG COMPANY SCRIP A EUROPEAN DRUG INDUSTRY TRADE JOURNAL RECENTLY REPORTED THAT APOTEX IS SEEKING REGULATORY APPROVAL FOR THE DRUG IN SEVERAL OTHER EU COUNTRIES INCLUDING GREECE ITALY FRANCE AND SPAIN A WELLCOME SPOKESMAN SAID THE BRITISH COMPANY IS REVIEWING THE SITUATION IN PORTUGAL BUT HASN'T YET DECIDED WHETHER TO TAKE LEGAL ACTION IN A PHONE INTERVIEW A SPOKESMAN FOR GENEVA PHARMACEUTICALS DECLINED TO COMMENT ON GLAXO'S ACCOUNT OF PLANS FOR THE GENERIC FORM ONE ZANTAC OR ALLEGATIONS ABOUT UQUIFA'S PRODUCTION OF FORM TWO ZANTAC GENEVA REMAINS CONFIDENT IN OUR POSITION BOTH FROM SCIENTIFIC AND REGULATORY POINTS OF VIEW THE SPOKESMAN ADDED 9404290076 940429 ABREAST OF THE MARKET INDUSTRIALS DROP 3123 AS CONCERN OVER INFLATION DEPRESSES BONDS BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCKS RETREATED AS RENEWED INFLATION WORRIES SENT BOND PRICES TUMBLING INVESTORS SPENT THE DAY SIFTING THROUGH A MOUND OF ECONOMIC DATA RELEASED YESTERDAY MORNING AND IN THE END THEY DIDN'T LIKE WHAT THEY FOUND ALTHOUGH A READING ON FIRSTQUARTER GROWTH IN GROSS DOMESTIC PRODUCT WAS FAR WEAKER THAN FORECAST AT JUST 26 COMPARED WITH 7 IN THE 1993 FOURTH QUARTER THEY FOUND AMPLE EVIDENCE OF AN INFLATION THREAT BROAD INFLATION MEASURES WITHIN A COMMERCE DEPARTMENT REPORT SHOWED ACCELERATING INCREASES OVER THE QUARTER THE FIXEDWEIGHTED PRICE INDEX ROSE AT A 29 ANNUAL RATE IN THE FIRST QUARTER COMPARED WITH A 23 RATE IN THE FOURTH QUARTER OF 1993 THE DOW JONES INDUSTRIAL AVERAGE TUMBLED MORE THAN 40 POINTS AT ITS WORST BEFORE CLOSING WITH A LOSS OF 3123 OR 084 TO 366831 THE TREASURY'S 30YEAR ISSUE LOST MORE THAN TWO POINTS AT ITS LOW AND ENDED THE DAY OFF 1 3/4 ITS YIELD JUMPED TO 726 BROADBASED STOCK INDEXES REMAINED SOMEWHAT STRONGER THAN THE INDUSTRIAL AVERAGE ECONOMICALLY SENSITIVE ISSUES AND ENERGY STOCKS WHICH ARE HEAVILY WEIGHTED IN THE INDUSTRIAL AVERAGE WERE AMONG THE SESSION'S WEAKEST AMONG LOSERS CATERPILLAR DROPPED 1 3/4 TO 108 7/8 INTERNATIONAL BUSINESS MACHINES 1 3/8 TO 57 1/8 BETHLEHEM STEEL 7/8 TO 20 CHEVRON 2 1/4 TO 88 5/8 AND EXXON 1 TO 61 7/8 DECLINING ISSUES OUTPACED ADVANCERS BY 1275 TO 936 ON THE NEW YORK STOCK EXCHANGE VOLUME WAS ACTIVE AT 323140000 SHARES COMPARED WITH 287980000 ON TUESDAY THE FINANCIAL MARKETS WERE CLOSED WEDNESDAY IN OBSERVANCE OF A NATIONAL DAY OF MOURNING FOR FORMER PRESIDENT RICHARD M NIXON WHO DIED FRIDAY THE STANDARD & POOR'S 500 STOCK INDEX LOST 277 OR 061 TO 44910 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SHED 128 OR 051 TO 24913 AND THE DOW JONES EQUITY MARKET INDEX SLUMPED 279 OR 065 TO 42539 THE NASDAQ COMPOSITE INDEX SLIPPED 252 OR 034 TO 73169 ENDING A FOURSESSION WINNING STREAK THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX THOUGH ADDED 072 OR 016 TO 43892 ITS FIFTH CONSECUTIVE ADVANCE OILRELATED STOCKS SLUMPED IN PART ON NEWS THAT OPPENHEIMER RECOMMENDED THAT CLIENTS REDUCE THEIR HOLDINGS IN THE GROUP TO A MARKET WEIGHTING FROM AN OVERWEIGHTED POSITION ANALYST PAUL TING CITED UNCERTAINTIES ABOUT THE DIRECTION OF CRUDE OIL PRICES CRUDE FOR JUNE DELIVERY SLIPPED 34 CENTS TO 1657 A BARREL IN NEW YORK ON REPORTS OF HIGHERTHANEXPECTED GASOLINE INVENTORIES MOBIL FELL 2 1/4 TO 77 3/8 ATLANTIC RICHFIELD 2 TO 95 3/4 TEXACO 3/4 TO 63 5/8 AND EXXON 1 TO 61 7/8 TRUCKING STOCKS WERE STRONG ON REPORTS THAT COMPANIES AND THE TEAMSTERS WERE CLOSE TO SIGNING A TENTATIVE AGREEMENT TO END A THREEWEEK STRIKE CONSOLIDATED FREIGHTWAYS ADDED 1 TO 26 1/4 WHILE ROADWAY SERVICES INCREASED 2 1/4 TO 70 THE DOW JONES TRANSPORTATION AVERAGE ADVANCED 1082 OR 067 TO 163563 DELTA AIR LINES ADVANCED 1 7/8 TO 45 1/4 AFTER THE COMPANY DISCLOSED PLANS FOR A RESTRUCTURING IT SAID WILL LOWER ITS ANNUAL OPERATING COSTS BY 2 BILLION BY LATE 1997 THE PLAN INCLUDES ELIMINATION OF 16 TO 20 OF ITS WORK FORCE SEPARATELY THE ATLANTA COMPANY SAID ITS LOSS NARROWED TO 210 A SHARE IN ITS THIRD QUARTER ENDED MARCH 31 FROM 256 BEFORE A CHARGE A YEAR EARLIER TELE DANMARK A NEW ISSUE TOPPED THE BIG BOARD MOSTACTIVE LIST CLOSING AT 25 7/8 ON VOLUME OF 141 MILLION SHARES THE PRIVATIZATION ISSUE PART OF A WORLDWIDE OFFERING WAS PRICED AT 23526 A SHARE NEAR THE HIGH END OF EXPECTATIONS THE DANISH GOVERNMENT RETAINS A 51 VOTING INTEREST IN THE TELEPHONE SERVICES COMPANY AFTER THE OFFERING ENQUIRER/STAR RALLIED 2 3/4 TO 17 1/4 THE PUBLISHER OF SUPERMARKET TABLOIDS SAID ITS MAJORITY HOLDERS OFFERED TO ACQUIRE THE 24 OF THE COMPANY THEY DON'T ALREADY OWN FOR 1750 A SHARE A COMMITTEE OF ITS INDEPENDENT DIRECTORS WILL EVALUATE THE BID PREMARK INTERNATIONAL CLIMBED 5 3/4 TO 78 5/8 AFTER THE MAKER OF TUPPERWARE BRAND FOODSTORAGE CONTAINERS POSTED FIRSTQUARTER NET INCOME OF 113 A SHARE UP FROM 72 CENTS A YEAR AGO IT PREDICTED CONTINUED SOLID IMPROVEMENT FOR ITS SECONDQUARTER RESULTS US SHOE ADDED 1 TO 18 1/4 LATE TUESDAY THE COMPANY PREDICTED ITS NET INCOME FOR THE FIRST QUARTER ENDING THIS MONTH WILL JUMP TO MORE THAN 20 CENTS A SHARE THAT IS MORE THAN DOUBLE THE LEVEL ANALYSTS HAD FORECAST FOR THE CINCINNATI RETAILER A YEAR AGO IT HAD A LOSS OF 21 CENTS TELECOMMUNICATIONS CLASS A LOST 1/2 TO 19 1/4 ON NASDAQ AFTER THE JUSTICE DEPARTMENT APPROVED ITS PLANNED PURCHASE OF LIBERTY MEDIA AS LONG AS THE TWO CABLETELEVISION COMPANIES DON'T DISCRIMINATE AGAINST COMPETITORS LIBERTY MEDIA EASED 1/4 TO 18 3/4 ALSO ON NASDAQ HOME SHOPPING NETWORK FELL 1 TO 11 THIS NEWSPAPER REPORTED THAT TURNER BROADCASTING SYSTEM'S INTEREST IN ACQUIRING THE ST PETERSBURG FLA TELEVISION NETWORK HAS COOLED FOR NOW ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER HOME SHOPPING SHARES ARE SAID TO HAVE BECOME TOO PRICEY FOR TURNER CLASS B SHARES OF TURNER BASED IN ATLANTA ROSE 3/8 TO 18 7/8 ON THE AMEX 9404290075 940429 CHINESE OFFICIAL'S VISIT TO HONG KONG HIGHLIGHTS WHO'S IN AND OUT ON ISLAND BY JESSE WONG STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG EXCITEMENT IS BUILDING IN THIS COLONY OVER NEXT WEEK'S VISIT BY THE CHINESE OFFICIAL IN CHARGE OF HONG KONG POLICY LU PING IS TO BE SPECIAL GUEST AT A BIG BANK OF CHINA RECEPTION A LUNCHEON IN THE BALLROOM OF THE HILTON HOTEL WHERE HE IS TO SPEAK IS A SELLOUT BUT NOT EVERYONE IS CLUED IN ABOUT HIS PLANS THE HONG KONG GOVERNMENT FOR ONE IS IN THE DARK IT CAN CONFIRM THAT MR LU HAS OBTAINED A VISA TO ENTER THE COLONY BUT NOT MUCH ELSE WE'VE BEEN TOLD NOTHING A GOVERNMENT SPOKESMAN SAYS THE PUBLIC ISN'T IN THE LOOP EITHER MR LU WILL SPEND MUCH OF HIS WEEKLONG VISIT IN MEETINGS WITH THE PRELIMINARY WORKING COMMITTEE A CHINAAPPOINTED GROUP THAT OFFERS HIM ADVICE ON HONG KONG POLICY OR SO IT HAS BEEN REPORTED I'VE READ ABOUT THIS IN THE NEWSPAPERS BUT I CAN'T SAY ANYTHING SAYS A SPOKESMAN FOR THE COMMITTEE'S SECRETARIAT THE OFFICIAL FUZZINESS OVER MR LU'S VISIT POINTS TO AN AWKWARD THOUGH CRITICAL MOMENT AHEAD FOR HONG KONG'S TORTUOUS 1997 TRANSITION TO CHINESE RULE SINOBRITISH TIES HAVE BEEN IN A DEEP FREEZE SINCE SOON AFTER CHRIS PATTEN BECAME HONG KONG GOVERNOR IN JULY 1992 HE IS PUSHING FOR BROADER DEMOCRACY IN THE COLONY CHINA OBJECTING STRONGLY TO HIS PLANS HAS ACCUSED MR PATTEN OF RUINING BILATERAL COOPERATION AND HAS VOWED TO KEEP OFFICIAL CONTACTS TO A MINIMUM BUT WITH MANY VITAL 1997RELATED ISSUES AWAITING RESOLUTION SUCH A POLICY OF ANTAGONISM HAS PROVED HARD TO SUSTAIN OVER THE PAST FEW MONTHS CHINA HAS COOLED ITS RHETORIC AND RESUMED TALKS ON SOME ISSUES THE MOST NOTABLE OF THESE IS A LONGDELAYED AGREEMENT ON HONG KONG'S AIRPORT PROJECT WHOSE FINANCING REQUIRES CHINA'S ENDORSEMENT TO SUCCEED THESE DISCUSSIONS HAVE BEEN TAKING PLACE AT THE LOWER LEVELS AND HAVE PRODUCED NO MAJOR BREAKTHROUGH SO FAR THAT STALEMATE MAKES MR LU'S VISIT AN IMPORTANT IF HESITANT STEP FORWARD HE LAST VISITED ABOUT TWO YEARS AGO AND HAS SINCE TURNED DOWN MR PATTEN'S REPEATED INVITATIONS HARDLY ANYONE EXPECTS THIS JOURNEY TO HEAL OLD WOUNDS INDEED MR LU HAS POINTEDLY REFUSED MR PATTEN'S OFFER TO MEET NEXT WEEK EVEN SO MANY PEOPLE SEE THE VISIT AS A CRUCIAL CONFIRMATION OF A TURN BY CHINA TOWARD PRAGMATISM ON ITS HONG KONG POLICY I THINK THE ICE WILL BE BROKEN BUT IT CAN'T BE DONE ALL IN ONE STEP SAYS A HONG KONG CIVIC LEADER WHO IS FRIENDLY WITH MR LU SPEAKING ANONYMOUSLY A HONG KONG OFFICIAL OFFERS A SIMILAR INTERPRETATION I THINK HE'S TRYING TO ESTABLISH A PATTERN IN THAT TO BE EFFECTIVE HE CAN'T CONTINUE TO STAY AWAY THE OFFICIAL SAYS RETURNING TO HONG KONG MAY NOT BE EASY FOR MR LU AS DIRECTOR OF THE HONG KONG & MACAO AFFAIRS OFFICE HE CARRIES OUT THE DIRECTIONS OF A SMALL GROUP OF CHINESE POLICY MAKERS HEADED BY PREMIER LI PENG THAT PUTS HIM ON THE FRONT LINE IN EVERY MAJOR CONFLICT BETWEEN THE COLONY AND CHINA AND FEW ISSUES HAVE SOWN AS MUCH ANTAGONISM AS MR PATTEN'S POLITICAL REFORMS TO ENSURE POLITICAL CONTROL OVER HONG KONG CHINA STIPULATES THAT ONLY 20 OF THE COLONY'S 60 LEGISLATORS CAN BE CHOSEN BY POPULAR ELECTIONS IN 1997 THE REST ARE TO BE ELECTED FROM SMALL CIVIC AND BUSINESS GROUPS SOME WITH AS FEW AS A DOZEN ELECTORS THESE RESTRICTIONS ARE LAID DOWN IN THE BASIC LAW THE MINICONSTITUTION CHINA HAS PROMULGATED FOR POST1997 HONG KONG SPOTTING GRAY AREAS IN THE BASIC LAW MR PATTEN HAS PROPOSED VASTLY EXPANDING ELECTORATES TO INCLUDE UP TO 27 MILLION VOTERS THAT PROPOSAL HAS YET TO PASS HONG KONG'S LEGISLATIVE COUNCIL SINCE IT'S BEEN HELD UP BY CHINA'S OBJECTIONS AND MONTHS OF INCONCLUSIVE SINOBRITISH NEGOTIATIONS THOUGH WIDELY REGARDED AS A MODERATE MR LU HAS HAD TO LEAD HIGHLY PERSONAL ATTACKS AGAINST MR PATTEN WHEN SUCH ATTACKS WERE OFFICIAL POLICY ONE OF HIS MORE MEMORABLE REMARKS CAME DURING A PARTICULARLY TENSE POINT IN THE CONTROVERSY A YEAR AGO DEPENDING ON THE TRANSLATION HE EITHER CALLED MR PATTEN A GUILTY PERSON OR A VILLAIN OF ALL TIME AT ANOTHER POINT IN THE DISPUTE MR LU'S OFFICE RATTLED THE COLONY WITH A THREAT TO INVALIDATE ALL EXISTING HONG KONG GOVERNMENT CONTRACTS AFTER THE 1997 TAKEOVER SUCH ATTACKS HAVE SERVED ONLY TO ENHANCE MR PATTEN'S INTERNATIONAL STANDING AS A DEFENDER OF DEMOCRACY THEY HAVE ALSO ENABLED THE GOVERNOR TO TAKE THE HIGH ROAD IN THE CONTROVERSY A TACTIC HE CONTINUES TO USE SPEAKING TO THE HONG KONG PRESS WEDNESDAY MR PATTEN OFFERED MR LU A PERSONAL WELCOME AT THE SAME TIME HE TOOK SOME SWIPES AT CHINA FOR FOOTDRAGGING PARTICULARLY IN THE SINOBRITISH JOINT LIAISON GROUP A BILATERAL FORUM FOR RESOLVING MOST 1997RELATED ISSUES I THINK EVERYBODY WILL BE HOPING THAT DIRECTOR LU COMES WITH SOME GOOD NEWS FOR HONG KONG IN HIS POCKETS GOOD NEWS ABOUT LIVELIHOOD ISSUES GOOD NEWS ABOUT SOME OF THE ISSUES THAT HAVE BEEN GRIDLOCKED IN THE JOINT LIAISON GROUP GOOD NEWS ABOUT THE AIRPORT AND OTHER MATTERS THE GOVERNOR SAID FEW PEOPLE EXPECT ANY BIG SURPRISES ON THESE FRONTS SINCE MR LU IS LIKELY TO STUDIOUSLY AVOID CONTACT WITH THE HONG KONG GOVERNMENT THOUGH THERE IS NO OFFICIAL WORD YET ON HIS SCHEDULE IT'S WIDELY KNOWN THAT HE WILL SPEND FOUR DAYS NEXT WEEK IN THE MEETINGS WITH THE PRELIMINARY WORKING COMMITTEE WHOSE MEMBERSHIP INCLUDES CHINESE OFFICIALS AND HONG KONG CIVIC LEADERS HE ALSO IS EXPECTED TO OFFICIATE AT A CEREMONY MARKING THE BANK OF CHINA'S DEBUT AS A BANKNOTE ISSUER IN HONG KONG BEFORE RETURNING TO BEIJING HE IS SCHEDULED TO DELIVER A SPEECH AT THE LUNCHEON ORGANIZED BY SEVERAL CHAMBERS OF COMMERCE MR PATTEN HASN'T BEEN INVITED TO THE SPEECH 9404290074 940429 WHO'S NEWS VESTAR CHIEF EXECUTIVE TO RETIRE SAN DIMAS CALIF VESTAR INC SAID ROGER J CROSSLEY 52 WILL RETIRE AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE PHARMACEUTICALS COMPANY EFFECTIVE MAY 25 AND WILL RETAIN THE TITLE OF NONEXECUTIVE CHAIRMAN VESTAR'S BOARD SAID IT HAS FORMED A SEARCH COMMITTEE TO FIND A NEW CHIEF EXECUTIVE AS AN INTERIM STEP THE BOARD NAMED CRISPIN GS ELEY 36 MICHAEL E HART 41 MICHAEL E ROSS 47 PAUL G SCHMIDT 49 AND RICHARD C VOGEL 39 TO THE OFFICE OF THE PRESIDENT WHICH WILL MANAGE THE COMPANY UNTIL THE NEW CHIEF EXECUTIVE IS NAMED DR CROSSLEY JOINED VESTAR AS CHIEF EXECUTIVE IN 1984 AND WAS NAMED CHAIRMAN IN 1993 HE WILL CONTINUE TO SIT ON VESTAR'S BOARD AND WILL SERVE AS A CONSULTANT 9404290073 940429 UNION PACIFIC PLANS PURCHASE BETHLEHEM PA UNION PACIFIC CORP SAID DIRECTORS AUTHORIZED THE PURCHASE OF 240 ALTERNATING CURRENT LOCOMOTIVES FOR ABOUT 590 MILLION OVER A FOURYEAR PERIOD THE PURCHASE PLAN INCLUDES A PREVIOUSLY ANNOUNCED 140 LOCOMOTIVES FROM GENERAL ELECTRIC CO FAIRFIELD CONN AS WELL AS 100 LOCOMOTIVES FROM GENERAL MOTORS CORP DETROIT UNDER AGREEMENTS WITH GE AND GM DELIVERIES WILL BEGIN IN 1995 THE INITIAL DELIVERIES WILL BE 4000HORSEPOWER LOCOMOTIVES WHICH WILL LATER BE UPGRADED TO 6000HORSEPOWER MODELS AS TECHNOLOGY BECOMES AVAILABLE 9404290072 940429 BUSINESS BRIEF COMPTRONIX CORP FIRSTQUARTER LOSS POSTED AMOUNTING TO 18 MILLION COMPTRONIX CORP REPORTED A FIRSTQUARTER LOSS OF 18 MILLION OR 17 CENTS A SHARE CITING SOFT SALES DURING THE FIRST TWO MONTHS OF THE YEAR THE LOSS COMPARES WITH PROFIT OF 25000 OR LESS THAN ONE CENT A SHARE A YEAR AGO FIRSTQUARTER REVENUE PLUNGED 43 TO 306 MILLION FROM 538 MILLION SECURITIES ANALYSTS WERE EXPECTING THE MAKER OF ELECTRONICS PARTS TO REPORT A LOSS OF ABOUT FOUR CENTS A SHARE THE GUNTERSVILLE ALA COMPANY HOWEVER SAID THE DEFICIT WAS IN LINE WITH ITS OWN EXPECTATIONS E TOWNES DUNCAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY DIDN'T CUT EXPENSES SIGNIFICANTLY IN THE FIRST QUARTER BECAUSE IT ANTICIPATED SALES IMPROVEMENTS IN MARCH THIS IN FACT OCCURRED AND WE CONTINUE TO EXPECT THAT SECONDQUARTER REVENUES WILL EXCEED BOTH OUR FIRSTQUARTER SALES AND OUR FOURTHQUARTER 1993 SALES OF APPROXIMATELY 36 MILLION HE SAID 9404290071 940429 AIR FRANCE POSTS LOSS AS SWISSAIR PROFIT DECLINES ALTHOUGH RESULTS DIFFERED BOTH CARRIERS WERE HURT BY FARE CUTS IN 1993 BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL AIR FRANCE AND SWISSAIR CONTINUED TO FLY DIFFERENT ROUTES IN 1993 WITH THE FRENCH AIRLINE REPORTING A HUGE LOSS WHILE THE SWISS CARRIER STAYED IN THE BLACK THE FRENCH CARRIER SAID IT HAD A NET LOSS OF 85 BILLION FRENCH FRANCS 148 BILLION THE WORST YEAR IN THE AIRLINE'S HISTORY THE AIRLINE HAD A LOSS OF 33 BILLION FRENCH FRANCS A YEAR EARLIER SINCE THE START OF THE AIRLINE CRISIS IN 1990 AIR FRANCE HAS REPORTED LOSSES OF 132 BILLION FRENCH FRANCS SWISSAIR MEANWHILE CONFIRMED THAT IT CONTINUED ITS LONGSTANDING PROFITABILITY BY REPORTING A GROUP NET PROFIT OF 59 MILLION SWISS FRANCS 414 MILLION IN 1993 BUT EVEN AS THE SWISS COMPANY TRUMPETED ITS ABILITY TO REMAIN PROFITABLE IT ACKNOWLEDGED THAT ITS PROFIT FELL ABOUT 48 FROM 113 MILLION SWISS FRANCS IN 1992 DESPITE CUTTING 300 MILLION SWISS FRANCS FROM THE COST BASE FOR 1993 THE PARENT AIRLINE'S NET PROFIT SLID ROUGHLY 68 TO 67 MILLION SWISS FRANCS FROM 208 MILLION SWISS FRANCS A YEAR EARLIER SWISSAIR ALREADY HAS ANNOUNCED IT WILL OMIT ITS 1993 DIVIDEND AIR FRANCE'S RESULTS WERE WIDELY EXPECTED THE AIRLINE HAD ESTIMATED LOSSES OF AT LEAST 75 BILLION FRENCH FRANCS AND THIS MONTH FRENCH TRANSPORT MINISTER BERNARD BOSSON SAID THE FIGURE COULD BE AS MUCH AS NINE BILLION FRENCH FRANCS THE AIRLINE CITED THE PERSISTENT DECLINE OF THE FRENCH MARKET ON WHICH IT EARNS MORE THAN HALF ITS TURNOVER COMPOUNDED BY SEVERE INDUSTRIAL ACTION AIR FRANCE WORKERS SHUT DOWN MUCH OF THE AIRLINE'S OPERATIONS IN OCTOBER WHILE PROTESTING PROPOSED JOB CUTS BUT THOSE WEREN'T AIR FRANCE'S ONLY TROUBLES THE AIRLINE SAID ITS NET FINANCIAL SPENDING SOARED 62 TO 35 BILLION FRENCH FRANCS AND IT SET ASIDE A RESERVE OF 18 BILLION FRENCH FRANCS FOR RESTRUCTURING THE RESULTS MAKE MORE PLAIN THAN EVER THE IMPORTANCE OF THAT RESTRUCTURING PLAN WHICH THIS MONTH WON OVERWHELMING APPROVAL OF THE WORK FORCE THE PLAN CALLS FOR A SUBSIDY OF 20 BILLION FRENCH FRANCS FROM THE FRENCH GOVERNMENT A WAGE FREEZE AN OVERHAUL AND THE ELIMINATION OF 5000 JOBS THROUGH ATTRITION AND EARLY RETIREMENT THE AIRLINE'S TURNOVER FELL 36 TO 552 BILLION FRENCH FRANCS LAST YEAR AND MODEST COST CUTTING EXPENSES WERE DOWN 04 IN 1993 WASN'T ENOUGH TO PREVENT AN OPERATING LOSS OF 33 MILLION FRENCH FRANCS THE AIRLINE'S DEBT HAS RISEN TO 37 BILLION FRENCH FRANCS FROM 27 BILLION FRENCH FRANCS IN 1992 AIR FRANCE ATTRIBUTED MUCH OF ITS LOWER INCOME TO COMPETITION WHICH HAS KEPT TICKET PRICES LOW AND RESULTED IN A 58 DROP IN ITS AIRLINE SALES TO 427 BILLION FRENCH FRANCS IN 1993 EVEN PERENNIALLY PROFITABLE SWISSAIR IS FEELING THE PAIN OF THE RECESSION SWISSAIR SAID ITS RESULTS WERE PARTICULARLY HARD HIT BY FARE CUTS WHICH CAUSED THE AIRLINE'S INCOME PER PASSENGER TO DECLINE 79 A LARGE DECLINE BY INDUSTRY STANDARDS THE SWISS AIRLINE MANAGED TO STAY PROFITABLE THANKS TO MAINTENANCE SERVICES TO OTHER AIRLINES AND THE SALE OF 10 USED MD81 JETLINERS FOR AN UNDISCLOSED AMOUNT A NEW MD81 TYPICALLY SELLS FOR ABOUT 25 MILLION SWISSAIR HAS USED ASSET SALES TO STAY IN THE BLACK BUT THE PRACTICE CONCERNS SOME OBSERVERS AS LONG AS YOU HAVE ASSETS TO SELL THAT'S FINE SAID RICHARD BOND A CONSULTANT WITH THE CANAAN GROUP IN LONDON BUT YOU CANNOT GROW THAT WAY BUT SWISSAIR'S PRESIDENT OTTO LOEPFE SAID THE GROUP'S 1994 RESULTS THUS FAR HAVE BEEN MORE FAVORABLE THAN A YEAR AGO ADDING THAT WHILE THE PARENT AIRLINE'S FIRSTQUARTER RESULTS ARE IN LINE WITH A YEAR EARLIER PASSENGER TRAFFIC IS UP SHARPLY AND SWISSAIR'S PLANES ARE 3 MORE FULL FACING CONTINUED FARE WARS MR LOEPFE SAID THE COMPANY'S GOAL IS TO CUT 500 MILLION SWISS FRANCS FROM THE BOTTOM LINE BY 1997 9404290070 940429 SUMMIT ACQUISITION FROM CALPERS CHARLOTTE NC SUMMIT PROPERTIES SAID IT PURCHASED JONATHAN'S KEEPE AN APARTMENT DEVELOPMENT IN FAIRFAX COUNTY VA FOR ABOUT 31 MILLION THE 418UNIT COMPLEX WAS ACQUIRED BY THE REAL ESTATE INVESTMENT TRUST FROM THE STATE OF CALIFORNIA PUBLIC EMPLOYEE'S RETIREMENT SYSTEM OR CALPERS 9404290069 940429 BUSINESS BRIEF CENTEX CORP NET INCOME JUMPED 42 IN FISCAL FOURTH QUARTER CENTEX CORP DALLAS SAID STRONG SHOWINGS BY ITS HOMEBUILDING AND MORTGAGEBANKING BUSINESSES HELPED BOOST FISCALFOURTHQUARTER EARNINGS 42 FOR THE QUARTER ENDED MARCH 31 THE COMPANY REPORTED NET INCOME OF 217 MILLION OR 66 CENTS A SHARE COMPARED WITH 153 MILLION OR 47 CENTS A SHARE A YEAR EARLIER REVENUE JUMPED 34 TO 8695 MILLION FROM 6509 MILLION CENTEX'S EARNINGS WERE ABOUT FOUR CENTS A SHARE ABOVE WALL STREET'S ESTIMATES SENDING THE PRICE OF ITS STOCK UP 375 CENTS TO 28625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING LIKE MANY COMPANIES IN THE HOMEBUILDING BUSINESS CENTEX HAS ENJOYED A SALES BOOM IN THE PAST YEAR AS A RESULT OF LOWER INTEREST RATES AT THE SAME TIME LUMBER PRICES HAVE EASED IN MUCH OF THE COUNTRY BOOSTING THE COMPANY'S PROFIT FOR THE FULL YEAR CENTEX HAD NET OF 852 MILLION OR 260 A SHARE UP FROM 61 MILLION OR 191 A SHARE REVENUE ROSE 28 TO 321 BILLION FROM 25 BILLION CENTEX SAID IT EXPECTS THE LOWER LUMBER PRICES AND HIGHER HOME SALES TO CONTINUE IN FISCAL 1995 THOUGH IT WARNED THAT RISING RATES COULD SLOW ITS MORTGAGE BANKING 9404290068 940429 BUSINESS BRIEF AB LM ERICSSON UNIT GETS EQUIPMENT ORDERS ESTIMATED AT 772 MILLION SWEDEN'S AB LM ERICSSON SAID ITS SUBSIDIARY IN MALAYSIA ERICSSON TELECOMMUNICATIONS SDN BHD HAS BEEN AWARDED ORDERS TOTALING 600 MILLION SWEDISH KRONOR 772 MILLION BY CELLULAR COMMUNICATIONS NETWORK MALAYSIA SDN BHD OR CELCOM FOR EXPANSION OF THE AUTOMATIC RADIO TELEPHONE 900 CELLULARTELECOMMUNICATIONS NETWORK THE ORDERS COVER RADIO BASE STATION AND MOBILETELEPHONE EXCHANGE EQUIPMENT THAT IS PART OF CELCOM'S RAPID EXPANSION OF NETWORK CAPACITY TO MEET THE INCREASING DEMAND FOR THE ART900 SERVICE ERICSSON SAID THE NEW ORDERS COME IN ADDITION TO THE MORE THAN 15 BILLION KRONOR THAT CELCOM HAS INVESTED IN THEIR NETWORK SINCE IT STARTED OPERATIONS IN AUGUST 1989 THE SWEDISH GROUP SAID 9404290067 940429 FED TO CHARGE FEES FOR SOME OVERDRAFTS BY US ENTERPRISES BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE FEDERAL RESERVE BOARD VOTED UNANIMOUSLY TO CHARGE FEES FOR CERTAIN OVERDRAFTS BY GOVERNMENTSPONSORED ENTERPRISES STARTING OCT 13 BUT THE FED CARVED OUT A MAJOR TEMPORARY EXEMPTION FOR OVERDRAFTS ATTRIBUTABLE TO PRINCIPAL AND INTEREST PAYMENTS ON SECURITIES ISSUED BY THE ENTERPRISES IT SAID THE EXEMPTION WILL BE REVIEWED NEXT YEAR AND THE ENTERPRISES WILL BE ENCOURAGED TO REDUCE THESE OVERDRAFTS IN THE INTERIM THE FED GAVE SHORT SHRIFT TO ARGUMENTS BY THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORP THAT IT LACKS THE AUTHORITY TO CHARGE THEM FOR THE OVERDRAFTS CALLED DAYLIGHT OVERDRAFTS WHICH OCCUR WHEN ENTITIES USING THE FEDWIRE SYSTEM TRANSFER OUT MORE MONEY THAN THEY RECEIVE AND OVERDRAW THEIR RESERVE ACCOUNT AT THE FED FREDDIE MAC DECLINED TO COMMENT ON THE FED'S ACTION FANNIE MAE SPOKESMAN DAVID JEFFERS SAID THE COMPANY DOESN'T BELIEVE SIGNIFICANT SUMS OF MONEY WILL BE INVOLVED IN THE FEES HE ALSO SAID SOME OF THE FIRM'S CONCERNS APPEAR TO HAVE BEEN ADDRESSED BY THE EXEMPTION WITHOUT THE NEW POLICY THE FED SAID THE ENTERPRISES MIGHT BE ABLE TO MAKE PROFITS BY BORROWING FUNDS FROM THE FED IN THE FORM OF FREE DAYLIGHT OVERDRAFTS AND THEN RESELLING THIS CREDIT TO DEPOSITORY INSTITUTIONS THE NEW POLICY WILL ELIMINATE THE SUBSIDY SAID FED CHAIRMAN ALAN GREENSPAN THE NEW FEE POLICY WILL COVER FANNIE MAE FREDDIE MAC THE STUDENT LOAN MARKETING ASSOCIATION THE FEDERAL HOME LOAN BANK SYSTEM AND THE FARM CREDIT SYSTEM THE ENTERPRISES WILL BE CHARGED THE SAME INITIAL FEE THAT THE FED INSTITUTED FOR DEPOSITORY INSTITUTIONS APRIL 14 THAT FEE STARTS AT AN ANNUAL RATE OF 10 CENTS FOR EACH 100 OF DAILY OVERDRAFTS AND IS TO RISE EVENTUALLY TO 25 CENTS THE FED HAD NO ESTIMATE OF HOW MUCH IT MIGHT COLLECT FROM THE ENTERPRISES IN OVERDRAFT FEES 9404290066 940429 COMMODITIES GRAIN PRICES RISE AS YOUNG CROPS ARE THREATENED BY COLD WET WEATHER ACROSS MIDSECTION OF US BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO US GRAIN PRICES ROSE AS COLD WET WEATHER ACROSS THE NATION'S MIDSECTION THREATENED YOUNG CROPS FROM IOWA TO TEXAS SOME GRAIN TRADERS ARE ALREADY TRIMMING THEIR HARVEST FORECAST OF THE HARD RED WINTER WHEAT CROP BY ROUGHLY 50 MILLION BUSHELS IN THE WAKE OF RECORD LOW TEMPERATURES ACROSS PARTS OF THE SOUTHERN PLAINS ANALYSTS ARE CONCERNED THAT FREEZING CONDITIONS IN CITIES SUCH AS AMARILLO TEXAS AND DODGE CITY KAN DAMAGED SURROUNDING WHEAT FIELDS IN TRADING AT THE KANSAS CITY BOARD OF TRADE THE HARD RED WINTER WHEAT CONTRACT FOR JULY DELIVERY ROSE 675 CENTS A BUSHEL TO SETTLE AT 32675 A BUSHEL DANIEL W BASSE EXECUTIVE VICE PRESIDENT AT AGRESOURCE CO CHICAGO SAID HE IS LOWERING HIS ORIGINAL 1091 BILLION BUSHEL ESTIMATE OF THE HARD RED WINTER WHEAT CROP BY BETWEEN 45 MILLION BUSHELS AND 65 MILLION BUSHELS CORN PRICES ROSE BECAUSE EXCESSIVE RAIN HAS SLOWED PLANTING PROGRESS IN THE MIDWEST SOME CITIES FROM EASTERN KANSAS TO SOUTHERN ILLINOIS HAVE RECEIVED SEVERAL INCHES OF RAIN IN RECENT DAYS IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR JULY DELIVERY CLIMBED 325 CENTS A BUSHEL TO SETTLE AT 26775 A BUSHEL TRADERS ARE CONCERNED THAT MUD AND COOL TEMPERATURES ACROSS THE MIDWEST WILL DISRUPT WHAT HAD BEEN A FAST START TO THE PLANTING SEASON THANKS IN PART TO AN UNUSUALLY DRY MARCH IOWA FARMERS HAVE ALREADY MANAGED TO PLANT ROUGHLY ONETHIRD OF THEIR CORN CROP THOSE ACRES ARE NOW VULNERABLE TO THE WAVE OF COLD TEMPERATURES SETTLING ACROSS THE MIDWEST SEED CORN REQUIRES A SOIL TEMPERATURE OF ABOUT 52 DEGREES FAHRENHEIT IN ORDER TO GERMINATE AND GROW SOME FARMERS MIGHT HAVE TO REPLANT THEIR FIELDS IF SOIL TEMPERATURES FALL LOW ENOUGH LONG ENOUGH FOR THE SEED TO ROT IN THE GROUND IT IS TOO EARLY FOR ANALYSTS TO TRIM THEIR CORN HARVEST FORECASTS HOWEVER TRADERS SAID PLANTING WOULD HAVE TO BE DELAYED BY TWO WEEKS IN ORDER TO BEGIN LOWERING POTENTIAL YIELDS SOME PRIVATE WEATHER FORECASTERS EXPECT THE GLOOMY WEATHER TO SETTLE OVER THE MIDWEST FOR SEVERAL DAYS THE NATIONAL WEATHER SERVICE IS SLATED TO RELEASE ITS 30DAY AND 90DAY FORECASTS TODAY IN OTHER NEWS CANADA'S STATISTICAL AGENCY PROJECTED A 53 INCREASE IN THE ACREAGE ITS FARMERS WILL PLANT THIS YEAR TO DURUM WHICH CREATES THE POTENTIAL FOR EVEN BIGGER SHIPMENTS OF THE CROP TO THE US A BUSINESS THAT HAS ALREADY BROUGHT THE US AND CANADA TO THE BRINK OF A TRADE WAR CANADA WHICH SUPPLIES ABOUT ONEFIFTH OF US DURUM CONSUMPTION EXPECTS ITS FARMERS TO PLANT 552 MILLION ACRES THIS YEAR COMPARED WITH 361 MILLION ACRES IN 1993 CANADIAN EXPORTS OF SPRING WHEAT HOWEVER MIGHT WEAKEN THE GOVERNMENT IS FORECASTING THAT FARMERS WILL PLANT 225 MILLION ACRES TO SPRING WHEAT THIS YEAR DOWN 19 FROM 278 MILLION ACRES LAST YEAR IN OTHER COMMODITY MARKETS YESTERDAY COFFEE DWINDLING SUPPLIES OF COFFEE AND THE SMOOTH OPERATION OF CENTRAL AMERICA'S EXPORTREDUCTION PROGRAM CONTINUED TO FORCE COFFEE FUTURES PRICES HIGHER AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE COFFEE FOR JULY DELIVERY WAS UP 395 CENTS TO 8855 CENTS A POUND AT ONE POINT YESTERDAY THE PRICE OF THE JULY CONTRACT REACHED 8870 CENTS A POUND ITS HIGHEST LEVEL SINCE SEPTEMBER 1991 SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH THE US COFFEE MARKET IS REACTING TO HIGH COFFEE PRICES IN EUROPE WHICH ARE LARGELY THE RESULT OF TIGHT STOCKS OF ROBUSTA EUROPEAN COFFEE MR O'NEILL SAID ADDITIONAL CONCERNS ABOUT TIGHT INTERNAL STOCKS IN BRAZIL THE WORLD'S BIGGEST COFFEEPRODUCING NATION ARE ALSO PRESSURING PRICES HIGHER AND THUS FAR CENTRAL AMERICAN NATIONS ARE ADHERING TO AN EXPORTLIMITING AGREEMENT WHICH ALSO HAS CURTAILED GLOBAL SUPPLIES MR O'NEILL SAID SUPPLY CONSTRAINTS ARE LIKELY TO CONTINUE TO PRESSURE COFFEE FUTURES PRICES HIGHER OVER THE NEXT FEW WEEKS 9404290064 940429 ELEVEN PEOPLE AND ONE FIRM ARE DISCIPLINED VARIOUS SEPARATE ACTIONS SET BY TWO EXCHANGES FUTURES TRADES INCLUDED BY ANN PODD STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A FORMER SHEARSON LEHMAN BROTHERS INC EMPLOYEE COST THE FIRM 15 MILLION FOR ALLEGEDLY UNAUTHORIZED FUTURES TRADES IN 1991 ACCORDING TO INFORMATION RELEASED BY THE NEW YORK STOCK EXCHANGE THE DISCLOSURE INCLUDED IN A MONTHLY DISCIPLINARYACTION REPORT SAID ROBIN T GEORGE HIRED BY SHEARSON IN FEBRUARY 1991 ALLEGEDLY MADE UNAUTHORIZED TRADES IN SEVERAL CUSTOMERS' COMMODITY FUTURES ACCOUNTS AS A RESULT OF A SHEARSON INTERNAL INVESTIGATION THE BIG BOARD SAID MR GEORGE WAS TERMINATED IN JANUARY 1992 AND THE FIRM MADE RESTITUTION TO THE AFFECTED CUSTOMERS FOR THE TOTAL AMOUNT OF 15 MILLION SHEARSON LEHMAN'S RETAIL OPERATIONS BECAME PART OF SMITH BARNEY SHEARSON INC LAST JULY A SMITH BARNEY SPOKESMAN SAID THE MATTER WAS CLOSED BY THE TIME THE ACQUISITION TOOK PLACE AND HAD NO COMMENT MR GEORGE COULDN'T BE REACHED FOR COMMENT THE DISCLOSURE COMES WHEN WALL STREET IS ESPECIALLY SENSITIVE TO UNAUTHORIZED TRADING EARLIER THIS MONTH KIDDER PEABODY GROUP INC FIRED ITS CHIEF GOVERNMENTBOND TRADER ALLEGING THAT HE CREATED BOGUS TRADES AND PROFITS THE BIG BOARD SAID THAT AFTER REPEATED ATTEMPTS TO INTERVIEW MR GEORGE IT HELD A MARCH 1 HEARING ON HIS FAILURE TO COMPLY WITH THE EXCHANGE'S REQUEST FOR INFORMATION ON HIS ACTIVITIES AT SHEARSON'S INTERNATIONAL FUTURES OFFICE WHEN HE FAILED TO SHOW THE EXCHANGE ISSUED ITS REPORT BARRING HIM FROM EMPLOYMENT WITH ANY BIG BOARD MEMBER UNTIL HE COMPLIES THE BIG BOARD ALSO ANNOUNCED DISCIPLINARY ACTIONS AGAINST ONE FIRM AND 10 OTHER INDIVIDUALS FOR VIOLATIONS OF EXCHANGE RULES AND FEDERAL SECURITIES LAWS DEAN WITTER REYNOLDS INC NEW YORK WAS FINED 40000 WITHOUT ADMITTING OR DENYING FINDINGS OF OPTIONSRELATED VIOLATIONS AND SUPERVISORY DEFICIENCIES AT ITS SPRINGFIELD MASS BRANCH OFFICE SEPARATELY THE AMERICAN STOCK EXCHANGE SAID IT FINED DEAN WITTER 50000 FOR DEFICIENCIES AT THE SPRINGFIELD OFFICE IN A RELATED ACTION ROBERT M BURKE AMHERST MASS A FORMER DEAN WITTER BRANCH MANAGER WAS BARRED BY THE BIG BOARD FROM SUPERVISORY CAPACITIES FOR EIGHT MONTHS WITHOUT ADMITTING OR DENYING FINDINGS THAT HE FAILED TO PROPERLY SUPERVISE A BROKER AND FAILED TO REVIEW OPTIONSRULE VIOLATIONS UNLESS OTHERWISE NOTED NONE OF THE INDIVIDUALS COULD BE REACHED OR HAD ANY COMMENT MICHAEL JONATHAN ZACKON READING PA A FORMER BRANCH MANAGER WAS BARRED FOR ONE YEAR AND BARRED AN ADDITIONAL YEAR FROM SUPERVISORY CAPACITY WITHOUT ADMITTING OR DENYING FINDINGS OF SALES PRACTICE MISCONDUCT IN TWO CUSTOMER ACCOUNTS AND FAILING TO REASONABLY DISCHARGE CERTAIN DUTIES AS BRANCH MANAGER ROBERT STAPELMAN EAST LANSING MICH A FORMER BRANCH MANAGER WAS SUSPENDED FOR FOUR MONTHS WITHOUT ADMITTING OR DENYING FINDINGS THAT HE FAILED TO REASONABLY SUPERVISE THE ACTIVITIES OF TWO BROKERS AND THE ACCOUNTS OF ONE GLENN GEOFFREY MALLOFF MELVILLE NY A BROKER WAS SUSPENDED FOR 12 WEEKS WITHOUT ADMITTING OR DENYING FINDINGS OF SALESPRACTICE MISCONDUCT ALAN EDWARD MILLER NEW YORK A BROKER WAS BARRED FOR THREE WEEKS WITHOUT ADMITTING OR DENYING FINDINGS THAT HE EXERCISED DISCRETIONARY POWER IN TWO ACCOUNTS WITHOUT PRIOR WRITTEN AUTHORIZATION PETER HOLWAY JEANNETTE PA A FORMER BROKER WAS BARRED FOR SIX WEEKS WITHOUT ADMITTING OR DENYING FINDINGS THAT HE ENGAGED IN OUTSIDE BUSINESS ACTIVITY WITHOUT PRIOR WRITTEN PERMISSION AND MADE MISSTATEMENTS ON DISCLOSURE QUESTIONNAIRES CAMILLE MARIA RECUPERO NEW YORK AN EMPLOYEE OF A MEMBER FIRM WAS PROHIBITED FOR TWO YEARS FROM A QUALIFICATION EXAMINATION WITHOUT ADMITTING OR DENYING FINDINGS THAT SHE USED OR ATTEMPTED TO USE UNAUTHORIZED ASSISTANCE WHILE TAKING AN EXAM JOSEPH A ROMAN NUTLEY NJ A FORMER OPERATIONS OFFICER WAS PERMANENTLY BARRED WITHOUT ADMITTING OR DENYING FINDINGS THAT HE MISAPPROPRIATED FUNDS FROM HIS EMPLOYER VICTOR N ANGELILLO MAHOPAC NY A FORMER OPERATIONS MANAGER WAS PERMANENTLY BARRED WITHOUT ADMITTING OR DENYING FINDINGS THAT HE MISAPPROPRIATED FUNDS FROM HIS EMPLOYER AND FAILED TO DISCLOSE THE TRUE BENEFICIAL INTEREST OF AN ACCOUNT JOHN JOSEPH JAPPER JR NEW YORK A FORMER CLERK WAS PERMANENTLY BARRED WITHOUT ADMITTING OR DENYING FINDINGS THAT HE ATTEMPTED TO MISAPPROPRIATE CUSTOMER FUNDS 9404290063 940429 BUSINESS BRIEF MARGARETTEN FINANCIAL CORP COMPANY SAYS IT RECEIVED SEVERAL ACQUISITION OFFERS MORTGAGE BANKING COMPANY MARGARETTEN FINANCIAL CORP SAID IT HAS RECEIVED TAKEOVER OFFERS FROM SEVERAL MAJOR FINANCIAL INSTITUTIONS MARGARETTEN SHARES HAD RISEN SHARPLY EARLIER THIS WEEK WHEN THE COMPANY ANNOUNCED IT WAS IN TALKS ABOUT ITS POSSIBLE ACQUISITION THE PERTH AMBOY NJ COMPANY SAID IT IS REVIEWING THE OFFERS AND EXPECTS TO CONTINUE TALKS WITH ONE OR MORE OF THE INSTITUTIONS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MARGARETTEN SHARES ROSE 1875 CENTS A SHARE TO 20125 THE SHARES WERE TRADING AROUND 14 BEFORE THE ANNOUNCEMENT ALSO MARGARETTEN SAID NET FOR THE FIRST QUARTER TOTALED 6 MILLION OR 38 CENTS A SHARE COMPARED WITH NET OF 6 MILLION OR 40 CENTS A SHARE A YEAR EARLIER THE COMPANY HAD MORE SHARES OUTSTANDING A YEAR AGO BUT PAID PREFERRED DIVIDENDS OF 825000 THIS YEAR REVENUE ROSE 8 TO 451 MILLION FROM 418 MILLION THE FIRSTQUARTER RESULTS WERE LESS THAN ANALYSTS' MEAN ESTIMATE OF 44 CENTS A SHARE 9404290062 940429 BUSINESS BRIEF BENEFICIAL CORP FINANCIAL SERVICES CONCERN SAYS 1STPERIOD NET ROSE 24 BENEFICIAL CORP REPORTED A 24 INCREASE IN FIRSTQUARTER NET INCOME CITING STRONG RECEIVABLES GROWTH RISING CREDIT QUALITY AND LOWER COSTS THE FINANCIAL SERVICES HOLDING COMPANY WHICH IS BASED IN WILMINGTON DEL SAID NET WAS 609 MILLION OR 113 A SHARE UP FROM 491 MILLION OR 91 CENTS A SHARE IN THE YEAREARLIER QUARTER THE PERSHARE FIGURES REFLECT A 2FOR1 STOCK SPLIT EFFECTIVE LAST DECEMBER THE YEAREARLIER FIGURES INCLUDED A 500000 OR ONE CENT A SHARE ONETIME CHARGE OWNED RECEIVABLES TOTALED 1046 BILLION AT THE END OF THE FIRST QUARTER UP 7 FROM 974 BILLION AT THE END OF THE YEAREARLIER PERIOD BENEFICIAL SAID IT REMAINS EXTREMELY OPTIMISTIC ABOUT ITS EARNINGS PROSPECTS FOR THE REMAINDER OF 1994 AND BEYOND BENEFICIAL SHARES SLIPPED 25 CENTS TO 37 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9404290061 940429 BUSINESS BRIEF AVNET INC FISCAL THIRDPERIOD NET ROSE 39 ON STRONG SALES AT UNIT ELECTRONICS COMPONENTS DISTRIBUTOR AVNET INC SAID NET INCOME ROSE 39 IN THE FISCAL THIRD QUARTER AIDED BY STRONG SALES FROM ITS ELECTRONIC MARKETING GROUP AS WELL AS BY ACQUISITIONS THE GREAT NECK NY COMPANY SAID NET INCOME FOR THE QUARTER ENDED APRIL 1 ROSE TO 253 MILLION OR 62 CENTS A SHARE FROM 182 MILLION OR 50 CENTS A SHARE A YEAR EARLIER SALES ROSE 55 TO 900 MILLION FROM 5825 MILLION THE ELECTRONIC MARKETING GROUP WHICH ACCOUNTS FOR 91 OF TOTAL SALES HAD A 62 INCREASE IN SALES PRINCIPALLY DUE TO STRONG SEMICONDUCTOR VOLUME AND EUROPEAN OPERATIONS THE GROUP'S PROFIT ROSE 39 THE COMPANY'S STOCK CLOSED AT 36875 DOWN 25 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9404290060 940429 BUSINESS BRIEF SARA LEE CORP FLAT EARNINGS OF 152 MILLION FOR FISCAL PERIOD ARE POSTED SARA LEE CORP REPORTED RECORD SALES BUT FLAT EARNINGS FOR ITS FISCAL THIRD QUARTER AS GAINS ELSEWHERE COULDN'T OFFSET DIFFICULTIES IN EUROPE THE FOOD AND PERSONALPRODUCTS CONCERN SAID EARNINGS FOR THE PERIOD WHICH ENDED APRIL 2 TOTALED 152 MILLION OR 30 CENTS A SHARE MATCHING YEAREARLIER FIGURES SALES INCREASED 11 TO 366 BILLION FROM 331 BILLION CHICAGOBASED SARA LEE SAID PREVIOUSLY DISCLOSED WEAK RESULTS IN ITS EUROPEAN HOSIERY AND KNITPRODUCTS BUSINESSES REDUCED OVERALL OPERATING PROFIT IN ITS PERSONALPRODUCTS DIVISION 18 DESPITE A 14 INCREASE IN SALES POOR EUROPEAN COFFEE SALES PINCHED THE COMPANY'S COFFEE AND GROCERY DIVISION'S PERFORMANCE WORLDWIDE SHEERHOSIERY VOLUME FELL 6 WHILE FOUNDATIONSUNIT VOLUME ROSE 19 SARA LEE CLOSED AT 20625 A SHARE UP 125 CENTS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE 9404290059 940429 BUSINESS BRIEF SYQUEST TECHNOLOGY INC SALE OF CARTRIDGE DISK DRIVES IS PLANNED UNDER OWN NAME SYQUEST TECHNOLOGY INC NEXT MONTH WILL BEGIN SELLING ITS COMPUTERCARTRIDGE DISK DRIVES UNDER ITS OWN NAME FOR THE FIRST TIME TO TARGET A BROADER MARKET DAVID EVERETT EXECUTIVE VICE PRESIDENT OF SALES AND MARKETING SAID SYQUEST MAKES REMOVABLE CARTRIDGES THAT CAN STORE AS MUCH AS 270 MEGABYTES OF DATA FROM A COMPUTER THE FREMONT CALIF COMPANY HAS MARKETED ITS PRODUCT MOSTLY UNDER THE NAME OF ITS DEALERS IN AN INTERVIEW MR EVERETT SAID THE COMPANY WILL ANNOUNCE MONDAY IT WILL BEGIN SELLING A NEW LINE OF ITS CARTRIDGES UNDER THE SYQUEST NAME THROUGH RETAIL STORES IN AN EFFORT TO TARGET THE MAINSTREAM MARKET FOR PERSONAL COMPUTERS SYQUEST WILL SELL THE 35INCH 270MEGABYTE AND 105MEGABYTECARTRIDGES THROUGH NATIONAL DISTRIBUTORS SUCH AS MERISEL INC AND TECH DATA CORP AS WELL AS SUPERSTORE CHAINS LIKE COMPUSA INC 9404290058 940429 BUSINESS BRIEF STONE & WEBSTER INC LAWSUIT BY HOLDER ASSERTS FIRM IS DISSIPATING ASSETS A SHAREHOLDER SUED STONE & WEBSTER INC AN ENGINEERING AND CONSTRUCTION COMPANY ASSERTING THAT IT HAS CEASED TO OPERATE AS A VIABLE BUSINESS AND IS DISSIPATING SHAREHOLDER ASSETS THE LAWSUIT FILED IN FEDERAL COURT IN BOSTON SEEKS TO POSTPONE THE 1994 ANNUAL MEETING AND TO REQUIRE THE COMPANY TO PROVIDE A CLEARER EXPLANATION OF ITS OPERATIONS AND BUSINESS PLANS THE COMPLAINT ALSO ALLEGES THAT THE COMPANY HAS USED OVERFUNDED BALANCES IN ITS STOCK PLANS TO MASK LOSSES IN MAJOR OPERATIONS THE SUIT ALSO SEEKS TO REMOVE CHASE MANHATTAN BANK AS TRUSTEE FOR THE COMPANY'S EMPLOYEE STOCK PLANS ASSERTING THAT CHASE FAILS TO REPRESENT EMPLOYEE INTERESTS CHASE AS TRUSTEE VOTES 37 OF THE COMPANY'S SHARES AND INVARIABLY SUPPORTS MANAGEMENT'S POSITIONS AND NOMINEES THE SUIT SAYS CHASE SAID THE COMPLAINT HASN'T ANY VALIDITY AND A SPOKESMAN SAID CHASE MEETS ALL REQUIREMENTS OF FEDERAL BENEFITPLAN LAWS BRUCE C COLES PRESIDENT OF STONE & WEBSTER CALLED THE SUIT IRRESPONSIBLE AND SAID THE COMPANY WOULD RESPOND IN COURT AND EXPECTS TO BE FULLY VINDICATED 9404290057 940429 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 3/4 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 13/16 HIGH 3 1/2 LOW 3 5/8 NEAR CLOSING BID 3 3/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 1/2 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 380 30 TO 49 DAYS 387 50 TO 69 DAYS 400 70 TO 89 DAYS 408 90 TO 119 DAYS 420 120 TO 149 DAYS 430 150 TO 179 DAYS 440 180 TO 254 DAYS 465 255 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 387 30 DAYS 399 60 DAYS 414 90 DAYS CERTIFICATES OF DEPOSIT 341 ONE MONTH 341 TWO MONTHS 353 THREE MONTHS 394 SIX MONTHS 448 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 385 ONE MONTH 415 THREE MONTHS 455 SIX MONTHS BANKERS ACCEPTANCES 382 30 DAYS 398 60 DAYS 410 90 DAYS 423 120 DAYS 436 150 DAYS 446 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 15/16 3 13/16 ONE MONTH 4 1/8 4 TWO MONTHS 4 1/4 4 1/8 THREE MONTHS 4 3/8 4 1/4 FOUR MONTHS 4 1/2 4 3/8 FIVE MONTHS 4 5/8 4 1/2 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 15/16 ONE MONTH 4 1/4 THREE MONTHS 4 5/8 SIX MONTHS 5 1/4 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 675 GERMANY 544 JAPAN 3 SWITZERLAND 750 BRITAIN 525 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY APRIL 25 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 385 13 WEEKS 425 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 838 60 DAYS 848 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 5125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 839 60 DAYS 847 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 635 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 302 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9404290056 940429 BUSINESS BRIEF SOUTHERN CO FIRSTQUARTER NET FELL 20 AFTER CHARGES OF 58 MILLION SOUTHERN CO SAID FIRSTQUARTER NET INCOME FELL 20 FOLLOWING CHARGES OF 58 MILLION TO REDUCE ITS WORK FORCE THE ATLANTA ELECTRIC UTILITY REPORTED NET INCOME OF 142 MILLION OR 22 CENTS A SHARE COMPARED WITH 177 MILLION OR 28 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 5 TO 193 BILLION FROM 184 BILLION A YEAR EARLIER THE COMPANY SAID IT TOOK A 45 MILLION CHARGE AT ITS GEORGIA POWER SUBSIDIARY AND A 13 MILLION CHARGE AT ITS SOUTHERN CO SERVICES UNIT TO TRIM EMPLOYMENT GEORGIA POWER EMPLOYED THE BULK OF THE APPROXIMATELY 500 AFFECTED WORKERS MOST OF WHOM ELECTED TO TAKE VOLUNTARY EARLY RETIREMENT ACCORDING TO A SOUTHERN CO SPOKESMAN SOUTHERN PARENT OF FIVE ELECTRIC UTILITIES EMPLOYS ABOUT 29000 PEOPLE SYSTEMWIDE HE SAID IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE SOUTHERN SHARES CLOSED AT 19125 DOWN 50 CENTS 9404290055 940429 BUSINESS BRIEF EQUITABLE RESOURCES INC HIGHER RETURN ON CAPITAL EXPANDED ASSETS ARE GOALS EQUITABLE RESOURCES INC SET GOALS OF INCREASING ITS ANNUAL RETURN ON CAPITAL TO 12 FROM THE CURRENT 10 AND EXPANDING ITS 19 BILLION ASSETS BY 15 SAID FRED ABREW THE NATURAL GAS COMPANY'S PRESIDENT AND CHIEF OPERATING OFFICER IN A PRESENTATION TO FINANCIAL ANALYSTS IN BOSTON PITTSBURGHBASED EQUITABLE WILL SEEK TO EXPAND UNDERDEVELOPED ASSETS IN THE ROCKY MOUNTAINS AND ITS LOUISIANA INTRASTATE GAS CO AS WELL AS ADD TO NATURAL GAS STORAGE FACILITIES IN PENNSYLVANIA AND NEW YORK 9404290054 940429 BUSINESS BRIEF EASTERN AIRLINES CONCERN SEEKS TO FLY AGAIN SAYS CREDITORS MAY GET MORE EASTERN AIRLINES WHICH SHUT DOWN IN 1991 AND HAS BEEN LIQUIDATING ITS ASSETS EVER SINCE WANTS TO TAKE FLIGHT AGAIN THE COMPANY WHICH IS STILL IN BANKRUPTCY PROCEEDINGS HAS DEVELOPED A BUSINESS PLAN THAT SHOWS SOME OF ITS MAJOR CREDITORS MIGHT GET MORE MONEY IF THE AIRLINE FLIES AGAIN THOSE CREDITORS OWN JETS THAT ARE CURRENTLY GROUNDED IF EASTERN FLIES AGAIN THE THINKING GOES AT LEAST THOSE CREDITORS MIGHT GET LEASE PAYMENTS THE AIRLINE SAID IT RECENTLY HIRED COOPERS & LYBRAND AS ITS FINANCIAL ADVISER YESTERDAY SOME OF ITS EXECUTIVES MET WITH A HANDFUL OF WALL STREET ANALYSTS IN NEW YORK MARTIN R SHUGRUE JR APPOINTED BY THE BANKRUPTCY COURT IN 1990 TO OVERSEE EASTERN'S AFFAIRS TOLD THE ANALYSTS THAT HE'S SEEKING 100 MILLION TO START UP A 14JET OPERATION IN SEPTEMBER ACCORDING TO TWO PEOPLE WHO ATTENDED THE MEETING IN A STATEMENT MR SHUGRUE SAID THE BANKRUPTCY COURT OVERSEEING THE CASE APPROVED THE HIRING OF COOPERS & LYBRAND 9404290053 940429 BUSINESS BRIEF KETEMA INC DIRECTORS' GROUP OFFERS BID FOR MANUFACTURER'S TAKEOVER KETEMA INC SAID IT'S CONSIDERING A 13125ASHARE TAKEOVER OFFER FROM A SHAREHOLDER GROUP THAT INCLUDES FOUR OF ITS SIX DIRECTORS IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE YESTERDAY KETEMA STOCK CLOSED AT 1350 UP 50 CENTS AT THE OFFERED PRICE THE GROUP WOULD PAY ABOUT 37 MILLION FOR THE 80 OF KETEMA IT DOESN'T OWN THE SPOKESMAN SAID THAT OF THE FOUR KETEMA DIRECTORS THREE ARE OUTSIDERS AND ONE IS KETEMA'S CHIEF EXECUTIVE THE OFFER IS CONTINGENT UPON AMONG OTHER THINGS THE CEO AGREEING TO STAY THE DENVERBASED MANUFACTURER OF PRODUCTS FOR THE PROCESS INDUSTRIAL AND AEROSPACE MARKETS SAID THE PROSPECTIVE BUYERS ARE AFFILIATED WITH AMERICAN SECURITIES CORP 9404290051 940429 BUSINESS BRIEF GATEWAY 2000 INC LOWERTHANEXPECTED NET REPORTED FOR FIRST QUARTER GATEWAY 2000 INC STUMBLING AT A TIME WHEN THE REST OF THE PERSONAL COMPUTER BUSINESS SEEMS TO BE ON A ROLL REPORTED LOWERTHANEXPECTED FIRSTQUARTER EARNINGS DESPITE A 46 JUMP IN SALES THE MAILORDER COMPUTER COMPANY BASED IN NORTH SIOUX CITY SD SAID ITS NET INCOME TOTALED 254 MILLION OR 32 CENTS A SHARE OFF SLIGHTLY FROM 261 MILLION OR 37 CENTS DURING THE SAME PERIOD A YEAR EARLIER REVENUE JUMPED TO 6159 MILLION FROM 421 MILLION GATEWAY'S EARNINGS ABOUT NINE CENTS A SHARE LOWER THAN MOST ANALYSTS PREDICTED WERE RELEASED AFTER THE CLOSE OF THE STOCK MARKET IN NASDAQ STOCK MARKET TRADING YESTERDAY GATEWAY CLOSED AT 204375 UP 1875 CENTS THE LOWER PROFIT IS IN SHARP CONTRAST TO HEALTHY SHOWINGS FROM GATEWAY COMPETITORS MOST NOTABLY COMPAQ COMPUTER CORP WHOSE PROFITS MORE THAN DOUBLED IN THE FIRST QUARTER AND AST RESEARCH INC WHICH REPORTED A 20 EARNINGS JUMP GATEWAY BLAMED HIGHER SUPPORT COSTS EXPENSES IN EUROPE AND SHIFTS IN ITS SALES MIX FOR THE WEAK SHOWING 9404290050 940429 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN ABOUT 500000 MINING AND FACTORY WORKERS IN POLAND WALKED OFF THEIR JOBS NATIONWIDE IN A ONEDAY STRIKE BY THE SOLIDARITY TRADE UNION SEEKING TO FORCE THE GOVERNMENT TO EASE ECONOMIC POLICY THE WALKOUT AFFECTED ABOUT 10 OF POLAND'S INDUSTRIES INCLUDING 19 COAL MINES COLLIERS HAD BEGUN A STRIKE NINE DAYS AGO IDLING POWER PLANTS AND FORCING ELECTRICITY CUTS SOLIDARITY SAID WORKERS STRUCK AT 100 STATEOWNED FIRMS MAKING THE PROTEST THE BIGGEST SINCE THE COALITION GOVERNMENT WITH ROOTS IN THE PREVIOUS COMMUNIST SYSTEM TOOK OFFICE LAST NOVEMBER THE GOVERNMENT DEALING WITH A MOUNTING BUDGET DEFICIT AND HIGH INFLATION IS STUMBLING IN FULFILLING ELECTORAL PROMISES TO HELP PEOPLE HURT IN THE SWITCH TO CAPITALISM AFTER A RECESSION THE ECONOMY HAS BEGUN TO GROW UNDER MARKET REFORMS BUT LIVING STANDARDS HAVE DROPPED SINCE 1989 SOLIDARITY NOW PLANS FOR COMPANIES TO TAKE TURNS STRIKING UNTIL THE GOVERNMENT MEETS ITS DEMANDS INCLUDING SCRAPPING PLANS FOR WAGE CURBS AND IMPLEMENTING A PACT WITH UNIONS BUT MOST OTHER UNIONS SAID THE PROTEST IS HURTING THE ECONOMY TAIWAN BEGAN LEGAL FOREIGNFUTURES TRADING AND A FUTURES BROKERAGE FIRM OPENED WITH THE GOVERNING PARTY AMONG ITS SHAREHOLDERS THE GOVERNMENT PLANS TO SET UP A FUTURES MARKET IN A BID TO BECOME A REGIONAL FINANCIAL CENTER AND NINE MORE FIRMS COULD OPEN THIS YEAR ILLEGAL FUTURES TRADING BY UNLICENSED FIRMS BOOMED IN TAIWAN IN THE LATE 1970S THE SPECULATIVE BUSINESS PEAKED IN 1988 WHEN ABOUT 350 UNDERGROUND BROKERS' DAILY TRANSACTIONS TOTALED 189 MILLION RECENT GOVERNMENT CRACKDOWNS SHUT MOST OF THIS TRADE CHINA WILL REVIEW THE FUTURES MARKET NATIONWIDE AND CLOSE MANY EXCHANGES AND BROKERAGE FIRMS IN HOPES OF IMPROVING FOREIGN INVESTORS' CONFIDENCE THE CHINA DAILY SAID THE GOVERNMENT WANTS TO REGULATE THE MUSHROOMING INDUSTRY MORE CLOSELY AND SLOW ITS DEVELOPMENT PACE IT ALSO WILL DESIGNATE SITES FOR THE FUTURES MARKETS CHINA HAS MORE THAN 40 REGISTERED FUTURES EXCHANGES AND 500 BROKERAGE FIRMS INCLUDING UNDERGROUND OPERATORS WITH SHARING AND PIRATING OF COMPUTER SOFTWARE COMMON IN ASIA VIRUSES THAT DESTROY OR ALTER DATA ARE SPREADING RAPIDLY NORMAN DATA DEFENSE SYSTEMS A US ANTIVIRUS COMPANY ESTIMATED GLOBAL VIRUSES AT 3500 AND SAID THE TOTAL DOUBLES EVERY 10 MONTHS REFLECTING INCREASED ACCESS ON ELECTRONIC NETWORKS A NORMAN DATA STUDY FOUND THAT AS OF LAST MAY 32 OF COMPUTERS IN CHINA WERE INFECTED 19 IN THAILAND 12 IN HONG KONG AND SINGAPORE AND 10 IN TAIWAN COMPARED WITH 6 EACH IN THE US AND JAPAN TELETAS WHICH IN 1988 BECAME TURKEY'S FIRST PRIVATIZED COMPANY DECLARED BANKRUPTCY THE TELECOMMUNICATIONS CONCERN'S COURT FILING REPRESENTED A BLOW TO THE GOVERNMENT WHICH HAS BEGUN A CAMPAIGN TO SELL OFF ALL UNPROFITABLE STATE ENTERPRISES UNDER AN ECONOMIC AUSTERITY PACKAGE TELETAS WITH 1600 EMPLOYEES HAS DEBTS TOTALING 1047 MILLION THOUGH IT IS OWED 1232 MILLION BY A TURKISH STATERUN FIRM BUT THE GOVERNMENT BLAMED TELETAS'S TROUBLES ON UNSTABLE FINANCIAL MARKETS AND HIGH INTEREST RATES A FUEL SHORTAGE IN NIGERIA HAS PARALYZED TRANSPORTATION ACROSS THE OILPRODUCING NATION IN WESTCENTRAL AFRICA POOR MAINTENANCE AT MOST NIGERIAN REFINERIES HAS LIMITED THEIR PRODUCTION THOUGH THE MILITARY GOVERNMENT GETS MOST OF ITS REVENUE FROM CRUDEOIL EXPORTS THE MAINTENANCE WOES HAVE DRIED UP DOMESTIC GASOLINE OUTPUT AND NIGERIA HAS HAD TO START IMPORTING REFINED OIL THE GOVERNMENT ACKNOWLEDGED THE REFINERY MAINTENANCE PROBLEMS BUT SAID GASOLINE PRODUCTION WOULD BE SUFFICIENT IF PROPERLY MANAGED THE JAPANESE GOVERNMENT WILL OFFER MORE HELP TO SMALL AND MIDSIZE COMPANIES WITH FEWER THAN 100 EMPLOYEES THESE BUSINESSES ARE STRUGGLING IN THE PROLONGED RECESSION AND AN ENVIRONMENT IN WHICH LARGE ENTERPRISES USE FEWER SMALL SUBCONTRACTORS IN THE YEAR ENDED MARCH 31 SMALLER FIRMS ACCOUNTED FOR 99 OF JAPANESE BANKRUPTCIES THEY HAVE SLASHED SPENDING ON EQUIPMENT AND PLANTS THE SMALL AND MEDIUM ENTERPRISE AGENCY AN ARM OF THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID ITS ASSISTANCE PROGRAM IS INTENDED TO HELP FIRMS SURVIVE THE DETERIORATING CONDITIONS AND FIND MORE PROFITABLE LINES OF BUSINESS THE MEASURES INCLUDE A TAX CUT FOR BUYING FACILITIES FOR NEW BUSINESSES GOVERNMENTOWNED FINANCIAL INSTITUTIONS WILL SET UP A NONCOLLATERAL LOAN SYSTEM FOR COMPANIES THAT NEED MORE EMPLOYEES TO START NEW BUSINESSES THE GOVERNMENT ALSO WILL SUPPLEMENT COSTS FOR PRODUCT DEVELOPMENT AND RESEARCH FOR DIVERSIFICATION BOLIVIA DEPLOYED ITS ARMED FORCES TO KEEP ROADS FREE OF BARRICADES DURING A GENERAL STRIKE BEGUN TWO WEEKS AGO BY WORKERS DEMANDING HIGHER WAGES THE STRIKE MARKED BY ALMOST DAILY CLASHES WITH POLICE IN THE CAPITAL OF LA PAZ HAS SHUT SCHOOLS STATE HEALTH SERVICES AND MINES IN THE COUNTRY THE POOREST IN SOUTH AMERICA UNDER AN ECONOMIC STIMULUS PLAN FRANCE'S NATIONAL ASSEMBLY VOTED TO ALLOW WORKERS TO TAP THEIR PROFITSHARING PLANS TO PAY FOR AUTO PURCHASES OR HOME IMPROVEMENTS THIS YEAR 9404290049 940429 BUSINESS BRIEF T ROWE PRICE ASSOCIATES INC MUTUAL FUND MANAGER'S NET ROSE 35 FOR FIRST QUARTER MUTUAL FUND MANAGER T ROWE PRICE ASSOCIATES INC SAID FIRSTQUARTER NET INCOME ROSE 35 FUELED BY FEES EARNED ON INCREASED ASSETS UNDER MANAGEMENT NET ROSE TO 138 MILLION OR 44 CENTS A SHARE FROM 102 MILLION OR 34 CENTS A SHARE IN THE YEAREARLIER QUARTER REVENUE ROSE 34 TO 919 MILLION FROM 687 MILLION A YEAR AGO ASSETS UNDER MANAGEMENT ROSE 22 TO 535 MILLION FROM 438 MILLION A YEAR EARLIER BUT FELL 900 MILLION FROM YEAR END T ROWE PRICE WHICH IS BASED IN BALTIMORE SAID IT BOOSTED ADVERTISING AND PROMOTION EXPENSES BY 33 MILLION IN THE QUARTER TO 104 MILLION FROM 71 MILLION A YEAR AGO IF THE FINANCIAL MARKETS REMAIN AROUND CURRENT LEVELS FOR THE REMAINDER OF THE YEAR WE ANTICIPATE A GOOD 1994 SAID GEORGE J COLLINS PRESIDENT IN NASDAQ STOCK MARKET TRADING SHARES OF T ROWE PRICE GAINED 25 CENTS TO 29 9404290048 940429 BUSINESS BRIEF SELLECTEK INC HOLDERS APPROVE PROPOSAL FOR ACQUISITION BY GLASGAL SELLECTEK INC SAID SHAREHOLDERS APPROVED A PLAN FOR PRIVATELY HELD GLASGAL COMMUNICATIONS INC TO ACQUIRE THE COMPANY IN A STOCK SWAP SELLECTEK OF WALNUT CREEK CALIF SAID SHAREHOLDERS ALSO APPROVED A 1FOR5 REVERSE STOCK SPLIT AND AN INCREASE IN SELLECTEK'S AUTHORIZED SHARES TO 21 MILLION POSTSPLIT FROM 10 MILLION PRESPLIT SELLECTEK WHICH FORMERLY MADE INTERACTIVE SALES KIOSKS FOR THE PC INDUSTRY SAID IT EXPECTS THE MERGER WITH GLASGAL TO BE COMPLETED EARLY IN MAY AFTER THE MERGER SELLECTEK SAID IT WILL TAKE GLASGAL'S NAME UNDER TERMS OF THE MERGER GLASGAL SHAREHOLDERS WILL GET 32424 SELLECTEK SHARES FOR EACH GLASGAL SHARE OR A TOTAL OF ABOUT 92 MILLION SELLECTEK SHARES 9404290046 940429 BUSINESS BRIEF KENDALL SQUARE RESEARCH CORP COMPUTER CONCERN REQUESTS REVIEW OF NASDAQ DELISTING KENDALL SQUARE RESEARCH CORP SAID ITS STOCK HAS BEEN DELISTED BY NASDAQ FROM ITS NATIONAL MARKET SYSTEM THE WALTHAM MASS SUPERCOMPUTER MAKER SAID IT'S REQUESTING THAT NASDAQ RECONSIDERS ITS ACTION AND IT EXPECTS A RESPONSE WITHIN A WEEK THE DELISTING IS ANOTHER SETBACK FOR KENDALL WHICH HAS BEEN ROCKED BY ACCOUNTING AND SALES PROBLEMS THAT RESULTED IN HUGE CHARGES RESTATEMENTS OUSTER OF MANAGEMENT AND SHAREHOLDER LAWSUITS KENDALL SAID IT INTENDS TO DEMONSTRATE TO THE NASDAQ QUALIFICATIONS COMMITTEE HOW IT WILL CONTINUE TO COMPLY WITH LISTING REQUIREMENTS THE COMPANY SAID IT WILL SUBMIT FOR CONSIDERATION AMONG OTHER THINGS THE IMPACT OF KENDALL'S AGREEMENT IN PRINCIPLE WITH PLAINTIFFS IN THE SHAREHOLDER CLASSACTION SUITS AS WELL AS ITS 28 MILLION EQUITYINVESTMENT PLAN 9404290045 940429 HOST MARRIOTT SETTLES SUIT BETHESDA MD HOST MARRIOTT CORP SAID IT REACHED A 77 MILLION AGREEMENT WITH THE STATE OF FLORIDA TO SETTLE A LAWSUIT ARISING FROM THE SPLITUP OF THE FORMER MARRIOTT CORP THE FLORIDA BOARD OF ADMINISTRATION WAS AMONG SEVERAL MARRIOTT BONDHOLDERS WHO SUED WHEN THE VALUE OF MARRIOTT BONDS PLUNGED FOLLOWING THE 1992 ANNOUNCED SPLIT OF THE COMPANY INTO SEPARATE HOTEL MANAGEMENT AND REAL ESTATE MANAGEMENT COMPANIES UNDER THE SETTLEMENT HOST MARRIOTT THE DEBTBURDENED REAL ESTATE CONCERN AGREED TO PURCHASE 762 MILLION OF MARRIOTT BONDS HELD BY THE FLORIDA AGENCY AT THEIR FACE VALUE 9404290044 940429 BUSINESS BRIEF COLUMBIA GAS SYSTEM INC PROGRESS IS REPORTED IN TALKS WITH NATURAL GAS PRODUCERS COLUMBIA GAS SYSTEM INC WILMINGTON DEL SAID IT IS MAKING SOME PROGRESS IN TALKS WITH NATURAL GAS PRODUCERS THE KEY NEGOTIATING GROUP IN ITS BANKRUPTCY REORGANIZATION BUT OFFICIALS TOLD THE ANNUAL MEETING THAT THE COMPANY'S EMERGENCE FROM CHAPTER 11 PROCEEDINGS ISN'T LIKELY TO BE CONCLUDED BEFORE THE END OF THE YEAR CHAIRMAN JOHN H CROOM SAID TALKS WITH PRODUCERS HAVE NARROWED THE GAP BETWEEN COMPANY AND PRODUCER ESTIMATES OF THE VALUE OF THE CLAIMS THE COMPANY SAID IT EXPECTS FIRSTQUARTER EARNINGS OF 135 MILLION OR 266 A SHARE ONLY SLIGHTLY BELOW THE 140 MILLION OR 277 A SHARE A YEAR EARLIER THE COMPANY AND ITS PIPELINE SUBSIDIARY HAVE BEEN IN CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS SINCE MID1991 WHEN THE COMPANY FILED TO FORCE RENEGOTIATION OF BILLIONS OF DOLLARS IN CLAIMS OWED TO NATURAL GAS PRODUCERS UNDER FIXEDPRICE AND ABOVEMARKET RATE CONTRACTS 9404290043 940429 BUSINESS BRIEF SCICLONE PHARMACEUTICALS INC NEWS OF DRUG'S PERFORMANCE IN TESTS SENDS STOCK DOWN SCICLONE PHARMACEUTICALS INC LOST NEARLY 60 PERCENT OF ITS SHARE VALUE AFTER THE COMPANY DISCLOSED THAT IN HUMAN TRIAL ITS EXPERIMENTAL HEPATITIS DRUG THYMOSIN ALPHA 1 FAILED TO OUTPERFORM A PLACEBO SCICLONE'S DISCLOSURE SENT THE COMPANY'S SHARES PLUMMETING 59 OR 75625 TO CLOSE AT 51875 IN HEAVY NASDAQ STOCK MARKET TRADING THE SAN MATEO CALIF DRUG COMPANY SAID PARTIAL DATA FROM TESTS OF THYMOSIN ALPHA 1 BY ALPHA 1 BIOMEDICALS SHOWED THE DRUG PRODUCED NO MORE OF AN EFFECT THAN A PLACEBO ON HUMAN SUBJECTS WITH THE HEPATITIS B VIRUS 9404290042 940429 BUSINESS BRIEF ATLAS CORP US CONCERN AGREES TO BUY STAKE IN MIM HOLDINGS UNIT ATLAS CORP SAID IT AGREED TO PURCHASE ABOUT 127 MILLION SHARES OR ABOUT 37 OF THE SHARES OUTSTANDING OF GRANGES INC FOR ABOUT 50 MILLION CANADIAN DOLLARS US363 MILLION ATLAS A DENVER GOLD PRODUCER WILL BUY THE SHARES FROM THE CANADIAN SUBSIDIARY OF MIM HOLDINGS LTD BASED IN AUSTRALIA ATLAS SAID IT WILL PAY C4 FOR EACH SHARE OF GRANGES A TORONTO MINING CONCERN SHARES OF GRANGES JUMPED 50 CANADIAN CENTS OR 15 TO C375 ON THE TORONTO STOCK EXCHANGE UNDER THE AGREEMENT GRANGES SAID IT HAS A MONTH TO FIND A BUYER FOR THE SHARES AT A HIGHER PRICE OTHERWISE THE TRANSACTION WILL CLOSE JUNE 28 ATLAS SAID IT PLANS TO MAKE AN EQUITY OFFERING SUBJECT TO SHAREHOLDER APPROVAL TO FINANCE THE PURCHASE OF GRANGES SHARES 9404290041 940429 BUSINESS BRIEF SERVTECH INC HARTNEY INDUSTRIAL SERVICES TO BE ACQUIRED WITH STOCK SERVTECH INC SAID IT HAS AGREED TO ACQUIRE CLOSELY HELD HARTNEY INDUSTRIAL SERVICES CORP HOUSTON IN A STOCK TRANSACTION TERMS WERE NOT DISCLOSED SERVTECH SAID HARTNEY IS A REFRACTORY CONTRACTOR AND PROVIDES PROTECTIVE LININGS AND COATINGS FOR PROCESSING FACILITIES TO THE PETROLEUM REFINING PETROCHEMICAL CEMENT POWER GENERATION AND WASTE INCINERATION INDUSTRIES SERVTECH A HOUSTON SPECIALTY CONSTRUCTION COMPANY SAID HARTNEY HAD REVENUE OF 246 MILLION IN 1993 SERVTECH'S NET INCOME FOR THE YEAR WAS 29 MILLION OR 50 CENTS A SHARE ON REVENUE OF 162 MILLION JOHN M SLACK OF SERVTECH SAID THE TRANSACTION WHICH IS SUBJECT TO THE EXECUTION OF A DEFINITIVE MERGER AGREEMENT AND FINALIZATION OF CERTAIN OTHER MATTERS MAY BE COMPLETE BY THE END OF MAY SERVTECH SAID HARTNEY MANAGEMENT AND STAFF WILL REMAIN AND THE COMPANY WILL BECOME A WHOLLY OWNED SUBSIDIARY 9404290040 940429 BUSINESS BRIEF AIRTOURS PLC UK TRAVEL GROUP ACQUIRES SAS SUBSIDIARY CRUISE SHIP BRITISH TRAVEL GROUP AIRTOURS PLC SAID IT HAS PURCHASED SAS LEISURE AB A SCANDINAVIAN MARKET LEADER FROM THE SCANDINAVIAN AIRLINE SYSTEM FOR 74 MILLION US1114 MILLION AIRTOURS OF LONDON ALSO SAID IT HAS PURCHASED THE M/S SOUTHWARD A 16607 REGISTERTON CRUISE SHIP FOR 16 MILLION AIRTOURS SAID IT WILL RAISE 82 MILLION THROUGH A RIGHTS ISSUE TO FUND THE ACQUISITIONS WITH THE BALANCE COMING FROM AIRTOURS' RESOURCES AIRTOURS SAID IT EXPECTS SAS LEISURE TO RETURN TO PROFIT IN 1994 AFTER A RESTRUCTURING AND A GENERAL ECONOMIC RECOVERY IN SCANDINAVIA IN 1993 THE COMPANY RECORDED A PRETAX LOSS OF 94 MILLION SWEDISH KRONA US121 MILLION 9404290039 940429 FIVE WESTERN STATES SET THE PACE IN 1993 FOR INCOME GROWTH WASHINGTON FIVE CONTIGUOUS WESTERN STATES LED A DOZEN OTHER STATES IN POSTING THE FASTEST GROWTH IN PERCAPITA PERSONAL INCOME FOR 1993 PEOPLE HAVE BEEN GOING TO THESE STATES AS THEY WANT TO LEAVE THE SOUR ECONOMY OF CALIFORNIA SAID ROBERT DEDERICK CHIEF ECONOMIST AT NORTHERN TRUST CO IN CHICAGO REFERRING TO MONTANA IDAHO NEVADA WYOMING AND OREGON OTHER FASTGROWING STATES INCLUDE FLORIDA AND HAWAII WHICH HAVE BOUNCED BACK FROM HURRICANES ANDREW AND INIKI AND LOUISIANA AND INDIANA WHERE LOW POPULATION GROWTH AIDED THE PERCAPITA FIGURES AMONG THE TOP 12 STATES PERCAPITA INCREASES IN PERSONAL INCOME RANGED FROM 67 IN MONTANA TO 45 IN OREGON IN MANY OF THE FASTGROWING STATES THE COMMERCE DEPARTMENT ATTRIBUTED THE INCREASES TO EARNINGS IN PRIVATE SERVICETYPE INDUSTRIES AND IN NONDURABLES MANUFACTURING FOR EXAMPLE CONSTRUCTION EARNINGS INCREASED MORE THAN 10 LAST YEAR IN MOST OF THE GROWING STATES OVERALL THE NATION'S PERCAPITA INCOME ROSE 35 TO 20817 IN 1993 A SMALLER INCREASE THAN THE 49 GAIN IN 1992 THE SLOWESTGROWING STATES LAST YEAR WERE THE PLAINS STATES AS WELL AS CALIFORNIA NEW YORK AND WASHINGTON THE DEPARTMENT SAID JOB CUTBACKS IN THE AIRCRAFT INDUSTRY HURT WASHINGTON AND CALIFORNIA EQUALLY DESPITE A POPULATION DECREASE IN CALIFORNIA AND INCREASED MIGRATION TO WASHINGTON WHILE THE WEST COAST AND THE NORTHEAST WERE STILL SUFFERING THE EFFECTS OF DEFENSE CUTBACKS NEW YORK WAS HURT BY LOSSES IN FINANCE INSURANCE AND REAL ESTATE MR DEDERICK SAID HE ADDED THAT HE EXPECTS THE DOWNWARD TREND TO CONTINUE 9404290038 940429 INTERNATIONAL BRIEF FERRUZZI FINANZIARIA SPA ITALIAN CHEMICAL UNIT AGREES TO PACT WITH PAPER CONCERN MONTEDISON SAID IT REACHED AN AGREEMENT WITH RAYNE HOLDINGS INC TO SECURE AN EARLY PAYMENT OF ABOUT 570 MILLION FOR A 50 SHARE IN THE PAPER COMPANY JAMONT HOLDINGS NV MONTEDISON A MILANBASED CHEMICAL SUBSIDIARY OF FERRUZZI FINANZIARIA SPA SAID IT NEEDS THE CASH FOR THE REORGANIZATION OF ITS FERRUZZI MONTEDISON GROUP JAMES RIVER HOLDS THE REMAINING 50 SHARE IN JAMONT HOLDINGS RAYNE IS CONTROLLED BY CRAGNOTTI & PARTNERS 9404290037 940429 CREDIT RATINGS AMOCO CORP CHICAGO MOODY'S INVESTORS SERVICE INC LOWERED ITS RATING ON THIS OIL COMPANY'S LONGTERM DEBT TO DOUBLEA1 FROM TRIPLEA THE MOVE AFFECTS 45 BILLION OF DEBT THE AGENCY SAID IT DOWNGRADED ITS RATING BECAUSE OF AMOCO'S POOR DOMESTICRESERVE REPLACEMENT RECORD AS WELL AS THE HIGH COST BEING INCURRED BY THE COMPANY TO BUILD AN INTERNATIONAL EXPLORATION PRESENCE MOODY'S SAYS THESE RISKS ARE COMPOUNDED BY WEAK OIL PRICES AND EXPECTATIONS THAT WORLD OIL SUPPLIES WILL REMAIN EXCESSIVE THE DOWNGRADE CONCLUDES A RATING REVIEW WHICH BEGAN ON JAN 6 AN AMOCO SPOKESMAN SAID WE FEEL WE ARE A VERY FINANCIALLY STRONG COMPANY AND WE ARE CONTINUING TO IMPROVE OUR OPERATIONS WE ARE DISAPPOINTED BY THE DOWNGRADE BUT WE SEE NO MATERIAL IMPACT ON OUR BUSINESS OR ON OUR COST OF DEBT 9404290036 940429 QUAKER STATE SAYS EARNINGS EXCEED GOAL OF 10 IMPROVEMENT OIL CITY PA HERBERT M BAUM CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF QUAKER STATE CORP SAID THE COMPANY WILL BLOW BY ITS GOAL OF IMPROVING 1994 EARNINGS BY 10 BUT MR BAUM WHO WAS HIRED AWAY FROM CAMPBELL SOUP CO LAST JUNE TO REVITALIZE THE FLAGGING COMPANY AND REVERSE A STEADY DECLINE IN MARKET SHARE ALSO SAID THAT FIRSTQUARTER EARNINGS REPORTED EARLIER THIS WEEK WERE A SURPRISE ON THE HIGH SIDE AND THAT HE EXPECTS THE PACE TO SLOW BY YEAR'S END QUAKER STATE WHICH PRODUCES AND MARKETS BRANDED MOTOR OILS AND LUBRICANTS AND OTHER PRODUCTS AND SERVICES IN THE AUTOMOTIVE AFTERMARKET EARNED 56 MILLION OR 20 CENTS A SHARE FOR THE QUARTER COMPARED WITH 34 MILLION OR 13 CENTS A SHARE FOR THE YEAREARLIER PERIOD QUAKER STATE ALSO SEEMS TO BE ON ITS WAY TO ACHIEVING ITS GOAL OF IMPROVING MARKET SHARE 1 A YEAR MR BAUM SAID REVENUE WAS 2066 MILLION IN THE FIRST QUARTER THIS YEAR UP FROM 1798 MILLION IN THE FIRST QUARTER OF 1993 IN 1986 QUAKER STATE HELD ABOUT 20 OF THE MARKET BUT THE COMPANY HAD SLID TO 125 LAST YEAR MR BAUM SAID IN FEBRUARY THOUGH QUAKER STATE CAPTURED 148 OF MARKET SHARE AND HAS HAD SEVEN CONSECUTIVE MONTHS IN WHICH VOLUME WAS HIGHER THAN IN THE YEAR BEFORE HE SAID MR BAUM WHO WAS NOTED FOR HIS MARKETING SAVVY AT CAMPBELL WAS ENTHUSIASTIC ABOUT QUAKER STATE'S NEW AD CAMPAIGN INTELLIGENT OIL FOR LONGER ENGINE LIFE BUT SAID HE COULDN'T YET GAUGE ITS AFFECT ON THE MARKET THE CAMPAIGN WAS DEVELOPED BY CHIAT/DAY OF VENICE CALIF THE COMPANY'S FAST LUBE OPERATIONS WHICH REPORTED A 5 INCREASE IN THE NUMBER OF CARS IT SERVICED IN MARCH CONTINUE TO CONVERT TO QLUBES AT A COST OF 50000 TO 100000 PER STORE MR BAUM SAID THE COMPANY PLANS TO BE MORE AGGRESSIVE IN FRANCHISING THE OUTLETS HE SAID THE COMPANY CURRENTLY HAS A DEBTTOEQUITY RATIO OF 20 WHICH IT MIGHT EXTEND UP TO 35 MR BAUM SAID 9404290035 940429 INTERNATIONAL BRIEF EMPRESA NACIONAL DE ELECTRICIDAD SA CONSOLIDATED PROFIT CLIMBED BY 11 IN THE FIRST QUARTER SPAIN'S STATECONTROLLED ELECTRICITY PRODUCER AND DISTRIBUTOR EMPRESA NACIONAL DE ELECTRICIDAD SA ENDESA REPORTED AN 11 RISE IN FIRSTQUARTER CONSOLIDATED PROFIT TO 3454 BILLION PESETAS 2532 MILLION FROM 3120 BILLION PESETAS IN THE SAME PERIOD LAST YEAR THE COMPANY SAID INCREASES IN THE USE OF HYDROELECTRICITY AND LESS NEED FOR THERMAL GENERATING EQUIPMENT A RISE IN THE AVERAGE ELECTRICAL RATE OF 206 AND A REDUCTION OF 104 OF THE VARIABLE COSTS OF THE SYSTEM HELPED ENDESA'S FIRSTQUARTER RESULTS REDUCTION IN THE LEVEL OF DEBT AND RATES OF INTEREST ALSO CONTRIBUTED THE COMPANY SAID IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ENDESA'S AMERICAN DEPOSITARY SHARES ROSE 1125 OR 24 TO CLOSE AT 4875 9404290034 940429 NEW PROJECTS PUT CULTURAL TREASURES OF WORLD ON LINE ELECTRONIC MUSEUMS' ALLOW RESEARCHERS TO DIAL UP ON COMPUTERS AND BROWSE BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON MELANIE MENDONCA WANTS TO GET HER VASES ON LINE A DOCTORAL CANDIDATE AT OXFORD UNIVERSITY SHE IS WRITING A THESIS ON THE DINOS PAINTER A NAME THAT SCHOLARS HAVE GIVEN TO AN OTHERWISEANONYMOUS GREEK ARTIST OF THE FIFTH CENTURY BC WHOSE WORK SURVIVES TODAY ON ABOUT 150 ATHENIAN VASES ALAS INSPECTING ALL THOSE VASES ISN'T EASY THEY'RE SCATTERED AMONG MUSEUM COLLECTIONS IN BRITAIN THE US ITALY GREECE GERMANY AND FRANCE THAT'S A GREAT DEAL OF TRAVELING SHE SAYS IT'S VERY EXPENSIVE WHAT SHE'D REALLY LIKE IS TO BE ABLE TO DO SOME OF THAT RESEARCH FROM HOME PERHAPS BY COMPUTER AND PHONE THAT'S THE GERM OF THE IDEA BEHIND SEVERAL PROJECTS NOW UNDER WAY TO GET EUROPE'S GREATEST CULTURAL TREASURES ON LINE THAT MEANS STORING PICTURES AND VIDEO CLIPS OF GREEK VASES OR BOTTICELLI PAINTINGS ON COMPUTER AND THEN LETTING RESEARCHERS AROUND THE WORLD USE THEIR OWN COMPUTERS TO DIAL UP AND BROWSE THROUGH THEM THE CONCEPT IS SOMETIMES CALLED THE ELECTRONIC MUSEUM AND FAR FROM BEING FUTURISTIC IT'S ALREADY BECOMING REALITY AT SOME OF EUROPE'S MOST FAMOUS MUSEUMS THE BIGGEST PROJECT SUBSIDIZED WITH AN INITIAL SIX MILLION EUROPEAN CURRENCY UNIT 69 MILLION GRANT FROM THE EUROPEAN UNION'S RESEARCH AND DEVELOPMENT IN ADVANCED COMMUNICATIONS IN EUROPE PROGRAM WILL HOOK UP THE FIRST SEVEN MUSEUMS AROUND EUROPE THIS SUMMER INCLUDING THE GALLERIA DEGLI UFFIZI IN FLORENCE THE MUSEE D'ORSAY IN PARIS AND THE ASHMOLEAN MUSEUM IN OXFORD THE PROJECT'S PLANNERS LED BY THE TELESYSTEMES UNIT OF FRANCE TELECOM TALK OF ONE DAY HAVING AS MANY AS 250 MUSEUM COLLECTIONS AROUND EUROPE INTERCONNECTED AND ELECTRONICALLY ACCESSIBLE TO RESEARCHERS BUT THERE'S LOTS OF OTHER ONLINE ARTS PROJECTS IN THE WORKS THE BRITISH LIBRARY IN FEBRUARY BEGAN PUTTING ONLINE DIGITAL PHOTOGRAPHS OF ONE OF ITS MOST FAMOUS MANUSCRIPTS THE MEDIEVAL EPIC POEM BEOWULF THE 3182LINE MANUSCRIPT WAS SINGED IN A FIRE IN 1731 AND THE DIGITIZED IMAGES OF EACH PAGE MAKE IT POSSIBLE FOR THE FIRST TIME FOR SCHOLARS TO SEE CLEARLY ALL OF THE LETTERS THAT POSTFIRE RESTORATION EFFORTS HAD RENDERED ILLEGIBLE SAYS ANDREW PRESCOTT A BRITISH LIBRARY CURATOR THE RESULTANT DATABASE OF MANUSCRIPT IMAGES IS STORED ON COMPUTERS IN LONDON AND AT THE UNIVERSITY OF WEST VIRGINIA AND HAS BEEN TAPPED BY THOUSANDS OF ANGLOSAXON POETRY AFICIONADOS USING THE INTERNET THE WORLDWIDE ELECTRONIC NETWORK THERE ARE COMMERCIAL PROJECTS TOO PERHAPS THE MOSTPUBLICIZED IS BY CONTINUUM PRODUCTIONS CORP A REDMOND WASHBASED FIRM FOUNDED BY MICROSOFT CORP CHAIRMAN WILLIAM GATES III IT'S AMASSING ELECTRONICREPRODUCTION RIGHTS TO THOUSANDS OF ART TREASURES AROUND THE WORLD WITH AN EYE TO REPACKAGING AND SELLING THE IMAGES LIKEWISE SOME NEW YORK AUCTION HOUSES MAINTAIN PUBLIC DATABASES ACCESSIBLE OVER THE INTERNET AND MANY OF THE WORLD'S BIGGEST MUSEUMS AND LIBRARIES HAVE WRITTEN AND ALLOWED ONLINE ACCESS TO THEIR TEXT DATABASES THAT IS COMPUTER FILES DESCRIBING AND CATALOGING THEIR PRIZE MANUSCRIPTS OR PAINTINGS IN FRANCE FOR INSTANCE THE MINISTRY OF CULTURE MAINTAINS A TEXT DATABASE DESCRIBING 120000 WORKS OF ART STORED IN FRENCH MUSEUMS FROM ALL OVER THE WORLD ABOUT 4000 RESEARCHERS AND ART LOVERS A MONTH TAP INTO IT OVER THE INTERNET WHILE ANOTHER 400 TO 500 A MONTH BROWSE THROUGH IT OVER FRANCE TELECOM'S MINITEL ELECTRONICINFORMATION SERVICE BUT ONLINE MULTIMEDIA DATABASES COMBINING PHOTOGRAPHS TEXT AND SOME VIDEO CLIPS ARE RELATIVELY NEW TO MUSEUM CURATORS FOR INSTANCE CATHERINE CHEVILLOT A CURATOR AT THE MUSEE D'ORSAY IN PARIS SAYS SHE OFTEN NEEDS TO CHECK OTHER MUSEUMS AROUND THE WORLD TO KEEP TRACK OF WHAT THEY HAVE IN HER SPECIALTY LATE 19TH CENTURY SCULPTURE THAT'S A LABORIOUS PROCESS TODAY IF SHE WANTS TO GET A GLIMPSE OF A NEW ACQUISITION AT SAY LONDON'S TATE GALLERY SHE GENERALLY HAS TO CALL OR SEND A LETTER BEGGING FOR A PHOTOGRAPH A PROCESS THAT CAN TAKE DAYS THAT MAY ONE DAY BECOME AS OBSOLETE AS CARRIER PIGEONS HER MUSEUM IN 1987 WAS THE FIRST IN EUROPE TO START DIGITIZING PHOTOS AND VIDEOS OF ITS ENTIRE 33000OBJECT COLLECTION SINCE THEN OXFORD'S ASHMOLEAN THE LOUVRE'S DRAWING COLLECTION IN PARIS THE BRITISH LIBRARY'S MANUSCRIPT COLLECTION AND A FEW OTHER MUSEUMS IN EUROPE HAVE BEGUN DOING LIKEWISE THE EUFUNDED TELECOMMUNICATIONS PROJECT DUBBED RAMA FOR REMOTE ACCESS TO MUSEUM ARCHIVES IS WRITING SOME COMMON SOFTWARE TO INTERCONNECT ALL OF THE DIFFERENT MUSEUM DATABASES PARTICIPATING IN THE PROJECT AND THEN ORDERING THE PHONE LINES TO PATCH THEM ALL TOGETHER THE FIRST SEVEN MUSEUMS IN THE PROJECT ARE DUE TO GO ON LINE THIS SUMMER BUT THE PROJECT'S AMBITIONS GO FURTHER A BUSINESS PLAN DRAFTED LAST YEAR BY TELESYSTEMES PROJECTED THAT THE NEW NETWORK COULD ALSO BE USED TO START A COMMERCIAL ELECTRONICIMAGE SERVICE COMPETING WITH SUCH PRIVATE VENTURES AS CONTINUUM IT FORSEES A RANGE OF POSSIBLE SERVICES CUSTOMS OFFICIALS COULD CHECK THE DATABASES TO HELP TRACK ART THEFTS MUSEUM SHOPS COULD INSTALL HIGHQUALITY COLOR PRINTERS SO TOURISTS COULD BUY POSTERS OR POSTCARDS OF ANY PAINTING OR SCULPTURE ON THE NETWORK RATHER THAN ONLY THOSE ON DISPLAY AT THAT MUSEUM THERE WOULD BE LOTS OF OBSTACLES TO SUCH COMMERCIALIZATION THOUGH FOR INSTANCE THOUGH THE CURATORS GENERALLY TRUST ONE ANOTHER NOT TO RIP OFF EACH OTHER'S PHOTOS THEY HAVEN'T YET FIGURED OUT HOW TO PREVENT UNAUTHORIZED COPYING IF THEIR NETWORK WENT COMMERCIAL BUT THE POTENTIAL PRIZE FOR EUROPE'S CASHSTARVED MUSEUMS COULD BE SIGNIFICANT THE TELESYSTEMES STUDY FORECAST THAT BY 2000 THE RAMA NETWORK COULD BE GENERATING 91 MILLION EUROPEAN CURRENCY UNITS A YEAR IN REVENUES 9404290033 940429 PRODUCTION RESUMES AT A HEINEKEN PLANT BLOCKADED IN A STRIKE AMSTERDAM PRODUCTION AT ONE OF HEINEKEN NV'S PLANTS IN THE NETHERLANDS RESUMED YESTERDAY AFTER A JUDGE IN THE HAGUE LATE WEDNESDAY ORDERED STRIKERS TO LIFT THEIR BLOCKADE A SPOKESMAN FOR THE DUTCH BREWER SAID OUTPUT AIMED FOR THE DUTCH DOMESTIC BEER MARKET AT THE ZOETERWOUDE PLANT IS NEAR 100 PRODUCTION OF DOMESTIC AND EXPORT BEERS AT TWO OF HEINEKEN'S DUTCH PLANTS HAD BEEN HALTED SINCE LAST THURSDAY THE ZOETERWOUDE PLANT CURRENTLY IS BEING RUN BY EMPLOYEES NOT INVOLVED IN THE STRIKE BY THE DUTCH FEDERATION OF LABOR UNIONS WHICH IS ONE OF THREE UNIONS REPRESENTING WORKERS AT HEINEKEN PLANTS THE OTHER TWO UNIONS WEREN'T STRIKING THOUGH THE FNV BLOCKADE EFFECTIVELY KEPT THEM AND NONUNION PRODUCTION EMPLOYEES FROM WORK THE BLOCKADE ALSO PROHIBITED DELIVERY TRUCKS FROM ENTERING AND LEAVING THE PLANTS THE HEINEKEN SPOKESMAN EXPECTS MOST OF HIS COMPANY'S CUSTOMERS IN THE NETHERLANDS WILL BE FULLY SUPPLIED BEFORE THE FESTIVE QUEENS DAY NATIONAL HOLIDAY TOMORROW IT IS UNCLEAR HOWEVER WHEN OUTPUT WILL RESUME AT HEINEKEN'S DEN BOSCH BREWERY WHICH WAS ALSO BLOCKADED BY THE FNV OVER THE PAST WEEK IN A DISPUTE OVER WAGES AND OTHER ISSUES AN FNV SPOKESMAN SAID STRIKERS AT ZOETERWOUDE GO BACK TO WORK TODAY WHILE STRIKERS AT DEN BOSCH ARE DISCUSSING WHETHER TO CONTINUE STRIKING 9404290032 940429 GM'S SUCCESS IN FIGUERUELAS SHOWS HOW SPAIN MAY MAKE ITSELF A BETTER HOME FOR AUTO MAKERS BY AUDREY CHOI AND CARLTA VITZTHUM STAFF REPORTERS OF THE WALL STREET JOURNAL FIGUERUELAS SPAIN EVERY 40 SECONDS ANOTHER SHINY NEW CAR MOVES OFF THE ASSEMBLY LINE OF THE GM FACTORY HERE ADDING TO A PERFORMANCE RECORD THAT DEFIES ALL THE RULES IN SPAIN THE GENERAL MOTORS CORP OPERATION IS ONE OF THE MOST PRODUCTIVE AND PROFITABLE PLANTS IN THE EUROPEAN AUTO INDUSTRY ITS WORKERS RANK AMONG SPAIN'S MOST EFFICIENT AND BEST PAID AND THE PLANT'S LABOR LEADERS SING THE PRAISES OF A MANAGEMENT TEAM THAT OFFERS JOB SECURITY SHORTER HOURS AND OTHER INCENTIVES ALL THAT IS A CONSIDERABLE ACHIEVEMENT FOR THE LOW MAN IN PRODUCTIVITY AMONG DETROIT'S BIG THREE BUT EVEN MORE SO IN A COUNTRY THAT IS SLOWLY LOSING BUSINESS AND INVESTMENT TO EASTERN EUROPE AND OTHER LESS COSTLY AREAS INDEED WITH WAGES AND LABOR STRIFE STILL ON THE RISE IN SPAIN DESPITE UNEMPLOYMENT OF NEARLY 24 WORRIES OVER WHETHER MULTINATIONALS CAN REMAIN COMPETITIVE IN SPAIN ARE MOUNTING COMPANIES THAT HAVE SOUGHT TO COUNTER RISING PRODUCTION COSTS BY PARING THE PAYROLL HAVE BEEN HIT BY PROTESTS AND STRIKES THAT IS ESPECIALLY TRUE IN THE CAR INDUSTRY ONE OF THE COUNTRY'S LARGEST EMPLOYERS ACCOUNTING FOR ALMOST 5 OF GROSS NATIONAL PRODUCT MANY FOREIGN AUTO MAKERS ARE WARNING THAT THEY WILL HAVE TO SLASH THEIR WORK FORCES TO KEEP OPERATING IN A PARTICULARLY DRAMATIC CASE THE TOWN OF LINARES IN ANDALUSIA SPAIN'S POOREST REGION HAS BEEN PARALYZED BY STRIKES AND PROTESTS SINCE SANTANAMOTOR SA A UNIT OF JAPAN'S SUZUKI MOTOR CO INDICATED IT MIGHT CLOSE ITS FACTORY WHICH PRODUCES FOURWHEELDRIVE VEHICLES AND SUPPORTS 15000 OF THE 400000 RESIDENTS OF THE PROVINCE OF JAEN SUZUKI FILED FOR PROTECTION FROM CREDITORS IN FEBRUARY AFTER LOSING 19 BILLION PESETAS 1392 MILLION OVER THE PAST FOUR YEARS SEAT SA WHICH WAS TAKEN OVER IN 1986 BY EUROPE'S LARGEST CAR MAKER GERMANY'S VOLKSWAGEN AG RACKED UP A 184 BILLION MARK 110 BILLION LOSS LAST YEAR AND IS IDLING 9500 WORKERS IN A SCRAMBLE TO SURVIVE NISSAN MOTOR IBERICA THE UNPROFITABLE UNIT OF JAPAN'S NISSAN MOTOR CO IS SEEKING TO TRIM ITS WORK FORCE IN BARCELONA BY A THIRD BUT LAYOFFS IN SPAIN ARE AMONG THE MOST COSTLY IN EUROPE MAKING IT MORE TEMPTING FOR MANY COMPANIES TO TRY TO SHUT DOWN AND LEAVE RATHER THAN FACE THE WRATH OF UNIONS OVER REDUNDANCIES THAT'S A BIG CHANGE FROM JUST A FEW YEARS AGO WHEN THE COUNTRY'S GROWTH POTENTIAL AND LOW WAGES ACTED LIKE A MAGNET FOR FOREIGN INVESTMENT NOW SPAIN WORRIES THAT FOREIGN COMPANIES WILL BE LURED AWAY BY THE LOWERWAGE ECONOMIES OF EASTERN EUROPE OR THE EXPANDING MARKETS IN LATIN AMERICA AND THE ASIANPACIFIC REGION SPAIN HAS LOST ITS COMPETITIVE POSITION SAYS SEAT CHAIRMAN JUAN LLORENS WE NEED A WHOLE RESTRUCTURING OF THE SYSTEM TO GET COMPETITIVE AGAIN AFTER SPAIN BECAME A FULLFLEDGED MEMBER OF THE EUROPEAN UNION IN 1986 ITS ECONOMY BOOMED AS MULTINATIONALS SPED INTO THE COUNTRY AND IT WORKED OVERTIME TO CATCH UP WITH ITS WEALTHIER NEIGHBORS TO THE NORTH RAPID GROWTH MASKED THE ECONOMY'S DEEPSEATED STRUCTURAL PROBLEMS A RIGID LABOR MARKET OVERREGULATED SERVICE SECTORS AND POWERFUL PROFESSIONAL GUILDS WHICH THE RECESSION OF THE 1990S HAS ONCE AGAIN BROUGHT TO LIGHT GM'S FIGUERUELAS PLANT ISN'T IMMUNE TO THESE WOES SINCE GM FIRST CAME TO SPAIN IN 1980 ITS LABOR COSTS HAVE MORE THAN TRIPLED MANAGEMENT WORRIES THAT HOLDING ON TO SUCCESS COULD BE INCREASINGLY DIFFICULT WE ARE SLOWLY LOSING OUR COMPETITIVENESS YEAR BY YEAR SAYS JUAN SANZ PRESIDENT AND MANAGING DIRECTOR OF GM'S SPANISH DIVISION OPEL ESPANA SA NEVERTHELESS MR SANZ BELIEVES THAT IF SPAIN CAN CONTAIN LABOR AND FINANCING COSTS THE COUNTRY COULD ONCE AGAIN BECOME ONE OF THE BEST PLACES TO INVEST IN EUROPE EVEN WITH SWELLING PAYROLLS THE AVERAGE COST OF WAGES AND BENEFITS FOR A SPANISH WORKER IS ONLY AROUND THE EQUIVALENT OF 20 MARKS AN HOUR COMPARED WITH ABOUT 47 MARKS AN HOUR IN GERMANY THE WORLD'S MOST EXPENSIVE LABOR MARKET TO IMPROVE SPAIN'S COMPETITIVENESS THE SOCIALIST GOVERNMENT HAS SENT PARLIAMENT A SERIES OF MEASURES TO REFORM THE LABOR MARKET AND ENABLE COMPANIES TO BETTER ADAPT TO CHANGING MARKET CONDITIONS THE LEGISLATION SOME OF WHICH HAS ALREADY BEEN APPROVED IS EXPECTED TO GO INTO EFFECT THIS YEAR UNDER CURRENT LABOR LAWS SPAIN IS THE MOST EXPENSIVE PLACE TO GET RID OF PEOPLE SAYS MR SANZ THAT'S WHY EVEN THOUGH GM WILL GEAR UP PRODUCTION IN THE NEXT FEW YEARS IT DOESN'T HAVE MAJOR PLANS FOR HIRING INSTEAD IT PLANS TO PUSH PRODUCTIVITY TO THE LIMIT BEFORE TAKING ON NEW PEOPLE WHO MIGHT BE EXPENSIVE TO FIRE LATER AMID ALL THESE TROUBLES THE FIGUERUELAS PLANT JUST WEST OF SARAGOSSA IN NORTHERN SPAIN LOOKS LIKE AN OASIS OF PRODUCTIVITY AND OPTIMISM ON THE ARID PLAINS OF ARAGON LAST YEAR GM WAS THE ONLY ONE OF THE NINE FOREIGNOWNED CAR AND LIGHTTRUCK MANUFACTURERS IN SPAIN TO POST A PROFIT THE FIGUERUELAS PLANT OPERATED AT AN ENVIABLE 889 OF CAPACITY PRODUCING 340000 CARS IT CAN ASSEMBLE THE PLANT'S MAIN MODEL THE OPEL CORSA IN 2144 MANHOURS FAR OUTPACING GM'S US OPERATIONS WHICH CLOCK AROUND 30 HOURS FOR AN AVERAGE CAR WITH LESS THAN 5 ABSENTEEISM THE EMPLOYEES ARE MORE RELIABLE THAN THOSE IN MANY OF GM'S GERMAN PLANTS IT'S BETTER THAN ANYBODY COULD HAVE HOPED FOR BACK IN THE EARLY 1980S WHEN WE WERE SETTING IT UP SAYS DANIEL P SALLEE GM EUROPE VICE PRESIDENT IN CHARGE OF MANUFACTURING AND ASSEMBLY PLANTS SO WHAT'S WORKING AT FIGUERUELAS THE SUCCESS SEEMS TO COME FROM A COMBINATION OF SEVERAL FACTORS INCLUDING GOOD LUCK BY BUILDING FROM SCRATCH RATHER THAN TAKING OVER AN EXISTING OPERATION GM WAS ABLE TO TAILOR ITS PLANT TO ITS OWN SPECIFICATIONS HANDPICKING A YOUNG MOTIVATED WORK FORCE IT CREATED A CORPORATE CULTURE THAT BLENDED LOCAL KNOWLEDGE WITH GERMAN AND AMERICAN MANAGEMENT STYLES IT WAS HERE THAT J IGNACIO LOPEZ DE ARRIORTUA NOW VW'S CONTROVERSIAL PURCHASING CHIEF DEVELOPED HIS VERSION OF TOYOTA MOTOR CORP'S THEORY OF CONTINUAL IMPROVEMENT AND COSTCUTTING AND BECAME AN INDUSTRY GURU IN ADDITION BY TURNING THE OPEL CORSA INTO A GLOBAL CAR THAT PIONEERED THE SUBCOMPACT SECTOR FOR GM AROUND THE WORLD GM INSULATED FIGUERUELAS FROM THE DOWNTURN IN THE SPANISH AND EUROPEAN AUTO MARKETS SOME 85 OF PRODUCTION IS EXPORTED FROM FIGUERUELAS WITH AN EVER BIGGER PROPORTION GOING BEYOND EUROPE TO EXPANDING MARKETS SUCH AS MEXICO BRAZIL CHINA AND TAIWAN BUILDING A NEW PLANT FROM SCRATCH GAVE GM A PIVOTAL ADVANTAGE OVER ITS COMPETITORS AMONG OTHER THINGS IT NEVER HAD TO FIRE PEOPLE IN ADDITION WE RECOGNIZED THAT THE EXISTING PLANTS WERE OBSOLETE SAYS JOSE LUIS MARQUES DIRECTOR OF PERSONNEL AT FIGUERUELAS IF WE TOOK OVER ONE OF THE OLD PLANTS AND OLD CORPORATE CULTURES WE WOULD HAVE BIG PROBLEMS IN 1994 GM WILL BE GIVING 500000 MANHOURS OF TRAINING TO ITS FIGUERUELAS STAFF IN ALL SOME 40 OF WORKERS HAVE BEEN SENT TO GERMANY FOR TRAINING LASTING FROM THREE MONTHS TO A YEAR AND A HALF PERHAPS ONE OF THE MOST IMPORTANT BENEFITS OF THIS KIND OF CROSSCULTURAL TRAINING IS THE FLEXIBILITY IT OPENS UP FOR NEW IDEAS AND APPROACHES TO LABOR MANAGEMENT AND ORGANIZATION TEAMWORK IS A CULTURAL PROCESS WE'RE TRYING TO IMPLEMENT IT HERE UNIONS HAVE TO START CHANGING THEIR MENTALITY AND TRY TO BE LESS CONFRONTATIONAL SAYS JUAN MANUEL GARICANO PUBLICAFFAIRS MANAGER AT FIGUERUELAS FERNANDO BOLEA PRESIDENT OF THE WORKERS' COUNCIL ADDS HERE THE UNIONS UNDERSTAND WHAT THE ROLE OF A COMPANY IS IT'S THE SOURCE OF WEALTH FOR ALL OF US BUT IT HASN'T ALWAYS BEEN EASY WHEN GM SOUGHT IN 1988 TO INTRODUCE A THIRD NIGHT SHIFT THE UNIONS AUTOMATICALLY BALKED THE COMPANY DECIDED TO TAKE ITS CASE STRAIGHT TO THE WORKERS THEMSELVES MAKING IT CLEAR THAT THE NEW SHIFT WOULD CREATE AN ADDITIONAL 1100 JOBS A WORKER REFERENDUM VOTED THE EXTRA SHIFT IN RAISING GM'S PRODUCTIVITY 385 THE ONLY DRAWBACK BEING THE SPANISH GOVERNMENT REQUIREMENT THAT NIGHT WORKERS BE PAID A 4045 SUPPLEMENT IN ADDITION GM OFFICIALS IN SPAIN ACKNOWLEDGE THAT TO A CERTAIN EXTENT IT WAS SHEER LUCK THAT THE CORSA HAS BEEN SUCH A SUCCESS IN EUROPEAN AND NONEUROPEAN MARKETS THIS YEAR FIGUERUELAS IS BUILDING 25000 CORSAS FOR THE MEXICAN MARKET FIGUERUELAS'S IDENTITY AS AN ESSENTIALLY ONECAR PLANT PRODUCING ALMOST EXCLUSIVELY THE CORSA IS A KEY FACTOR IN ITS SUPERSTREAMLINED EFFICIENT PRODUCTION RECORD BUT IT ALSO EXPOSES A VULNERABILITY AS THE CURRENT MODEL BEGINS TO AGE AND SALES TAPER OFF THE PRESSURE IS ON FOR GM EITHER TO ENGINEER ANOTHER BLOCKBUSTER TO TAKE ADVANTAGE OF FIGUERUELAS'S HUGE CAPACITY OR KEEP FINDING NEW MARKETS THOUGH STILL GRAPPLING WITH HUGE PROBLEMS AT SEAT VW'S MR LOPEZ A TIRELESS PROMOTER OF HIS NATIVE SPAIN SAYS THAT WITH THE RIGHT MANAGEMENT DECISIONS AND LEADERSHIP SPAIN COULD BECOME A VERY GOOD PLACE FOR THE AUTO INDUSTRY GERMANY IS ALSO GOOD BUT SPAIN CAN BE VERY VERY GOOD 9404290031 940429 CORRECTIONS & AMPLIFICATIONS ASTORIA FEDERAL SAVINGS ASSOCIATION WOULD HAVE TO LOWER ITS CAPITAL BY 25 MILLION IF IT HAD VALUED ITS HOLDINGS OF COLLATERALIZEDMORTGAGE OBLIGATIONS WITH A HIGHRISK APPROACH AN ARTICLE YESTERDAY INCORRECTLY SAID ASTORIA WOULD HAVE HAD TO LOWER ITS FIRSTQUARTER PROFIT UNUM CORP S FIRSTQUARTER NET INCOME INCREASED 21 AND REVENUE ROSE 67 FROM THE YEAREARLIER QUARTER WEDNESDAY'S EDITIONS INCORRECTLY DESCRIBED THE FIGURES AS DECREASES AMERICAN STORES CO NAMED ROBERT P HERMANNS SENIOR EXECUTIVE VICE PRESIDENT/CHIEF OPERATING OFFICER FOOD THE NEW TITLE OF MR HERMANNS WAS INCORRECTLY GIVEN IN AN ARTICLE TUESDAY 9404290030 940429 INTERNATIONAL BRIEF BASF AG GERMAN CHEMICAL COMPANY POSTS 47 PRETAX PROFIT RISE BASF AG ONE OF GERMANY'S LARGEST CHEMICAL GROUPS SAID PRETAX PROFIT FOR THE FIRST THREE MONTHS OF 1994 SURGED 47 TO 349 MILLION MARKS US2091 MILLION FROM 239 MILLION MARKS IN 1993 NOTING PARTICULAR OVERSEAS GROWTH BASF ALSO SAID SALES ROSE 21 IN THE THREE MONTHS TO 113 BILLION MARKS FROM 11 BILLION MARKS EXCLUDING TAXES SALES ROSE 15 TO 106 BILLION MARKS IN THE QUARTER THE LUDWIGSHAFENBASED CHEMICAL CONCERN SAID DOMESTIC SALES WERE DOWN 64 TO 3 BILLION MARKS COMPARED WITH THE YEAREARLIER PERIOD WHILE FOREIGN SALES WERE 5 HIGHER AT 76 BILLION MARKS IN NORTH AMERICA WHICH COMPRISES ABOUT ONEFIFTH OF THE GROUP'S SALES THREEMONTH TURNOVER WAS UP 21 TO 21 BILLION MARKS THE COMPANY SAID THE GROUP SAID IT WILL CONTINUE TO CUT FIXED COSTS OPTIMIZE ITS PORTFOLIO AND IMPROVE ITS ORGANIZATION 9404290029 940429 WESTVACO PLANS CZECH FACTORY NEW YORK WESTVACO CORP SAID IT WILL BUILD A 25 MILLION PRINTING AND PACKAGECONVERTING PLANT IN THE CZECH REPUBLIC ABOUT 75 MILES EAST OF PRAGUE THE PLANT EXPECTED TO OPEN IN FALL 1995 WILL PRINT GRAPHICS ON PAPERBOARD AND CONVERT THE MATERIALS INTO CONTAINERS WESTVACO WHICH MAKES PAPER PACKAGING AND CHEMICALS SAID THE FACTORY IS TO SERVE CENTRAL EUROPE'S EXPANDING CONSUMERPACKAGING DEMAND 9404290028 940429 CANADIAN BANKRUPTCIES DECLINE OTTAWA CANADIAN BANKRUPTCIES TOTALED 6571 IN MARCH A 09 DECLINE FROM 6631 A YEAR EARLIER THE FEDERAL CONSUMER AND CORPORATE AFFAIRS DEPARTMENT SAID FOR JANUARY THROUGH MARCH BANKRUPTCIES TOTALED 16590 A 75 DECLINE FROM 17935 A YEAR EARLIER 9404290027 940429 INTERNATIONAL SKF SLATES OUTPUT IN CHINA GOTHENBURG SWEDEN SKF AB A MANUFACTURER OF ROLLER BEARINGS WILL BEGIN PRODUCTION OF BEARINGS IN CHINA MAURITZ SAHLIN CHIEF EXECUTIVE OFFICER SAID AT THE GROUP'S ANNUAL GENERAL MEETING IN CHINA WE SEE CLEAR POSSIBILITIES ABOVE ALL IN THE SIGNIFICANT RAILWAY BEARINGS MARKET MR SAHLIN SAID THE AUTOMOTIVE MARKET LOOKS PROMISING AS WELL 9404290026 940429 CCX EMERGES FROM BANKRUPTCY CHARLOTTE NC CCX INC SAID IT HAS SUCCESSFULLY EMERGED FROM BANKRUPTCYCOURT PROTECTION WITH THE CONFIRMATION OF ITS PREPACKAGED BANKRUPTCY PLAN BY THE US BANKRUPTCY COURT THE MAKER OF MESHES FOR SCREENING AND FILTRATION SAID THE PLAN PROVIDES FOR A MULTIYEAR BANKING AGREEMENT THE CONVERSION OF THE COMPANY'S SUBORDINATED DEBT TO EQUITY AND THE CANCELLATION OF ALL THE COMPANY'S PREFERRED AND COMMON STOCK IT WILL BEGIN IMPLEMENTING THE PROVISIONS ON MAY 9 THE COMPANY SAID 9404290025 940429 JUDGE IN CALIFORNIA BLOCKS LAW TO CURB FARMERS' IRRIGATION BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL JUDGE BLOCKED IMPLEMENTATION OF A LAW DESIGNED TO CURB CALIFORNIA FARMERS' DAMAGING ENVIRONMENTAL PRACTICES RULING THAT THE GOVERNMENT ITSELF HAD VIOLATED ENVIRONMENTAL LAWS JUDGE OLIVER W WANGER OF US DISTRICT COURT IN FRESNO CALIF RULED THAT THE GOVERNMENT COULDN'T IMPOSE NEW ENVIRONMENTAL RESTRICTIONS ON FARMERS' PRACTICES BECAUSE IT HADN'T COMPLIED WITH THE NATIONAL ENVIRONMENTAL POLICY ACT WHICH DATES FROM THE 1970S THE NEW ENVIRONMENTAL SAFEGUARDS WERE MANDATED BY CONGRESS IN LATE 1992 BUT THE JUDGE SAID THE GOVERNMENT CAN'T IMPOSE THEM WITHOUT FIRST PREPARING AN ENVIRONMENTALIMPACT STATEMENT PREPARING SUCH A DOCUMENT TYPICALLY TAKES SEVERAL YEARS THE RULING IS A MAJOR BLOW TO ENVIRONMENTALISTS WHO HAVE BEEN FIGHTING FOR YEARS TO HALT DAMAGE TO WILDLIFE CAUSED BY CALIFORNIA FARMERS' HEAVY IRRIGATION AND OTHER PRACTICES THE RULING ALSO BOOSTS A GROWING TREND THAT HAS SEEN THE TARGETS OF INCREASED ENVIRONMENTAL REGULATION FROM FARMERS TO MINERS TO LOGGERS USING ENVIRONMENTAL LAWS TO COMBAT NEW ENVIRONMENTAL REGULATION THE CASE WAS BROUGHT BY THE WESTLANDS WATER DISTRICT WHICH PROVIDES FEDERAL IRRIGATION WATER TO THE DRY ACRES IN CALIFORNIA'S SAN JOAQUIN VALLEY WESTLANDS IS A LONGSTANDING TARGET OF ENVIRONMENTALISTS IRRIGATION PRACTICES THERE HAVE ACCORDING TO FEDERAL BIOLOGISTS BADLY DAMAGED WILDLIFE FROM MIGRATORY BIRDS TO VARIOUS FISH SPECIES JUDGE WANGER'S RULING IN EFFECT BANS THE GOVERNMENT FROM SHIFTING A LARGE AMOUNT OF WATER TO RESTORING FISH HABITAT AND WETLANDS THAT WATER BEFORE PASSAGE OF THE 1992 LAW WOULD HAVE GONE TO WESTLANDS FARMERS THE GOVERNMENT HAD INTENDED TO SHIFT THAT WATER TO ENVIRONMENTAL PURPOSES WITHIN WEEKS HAMILTON CANDEE AN ATTORNEY FOR THE NATURAL RESOURCES DEFENSE COUNCIL CALLED THE RULING A TERRIBLE BLOW TO ENVIRONMENTAL PROTECTION HE PREDICTED A SWIFT APPEAL BY THE GOVERNMENT AND BY ENVIRONMENTAL GROUPS DON UPTON A SPOKESMAN FOR WESTLANDS HAILED THE RULING IT'S TOTALLY IN LINE WITH FEDERAL LAW MR UPTON SAID 9404290024 940429 GM FORD AND CHRYSLER OPERATE MOST PLANTS OVERTIME THIS WEEK DETROIT GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP ARE OPERATING OVERTIME AT NEARLY ALL US ASSEMBLY PLANTS THIS WEEK WITH THE EXCEPTION OF SOME FACTORIES THAT BUILD LUXURY CARS GM SAID IT SCHEDULED OVERTIME THIS WEEK AT ALL OF ITS US LIGHTTRUCK AND MOST OF ITS CARASSEMBLY PLANTS THIS WEEK EXCLUDING ITS HAMTRAMCK AND ORION TOWNSHIP MICH LUXURY CAR PLANTS SATURN SMALLCAR FACTORY IN TENNESSEE AND ITS LANSING MICH FACTORIES THAT BUILD PONTIAC OLDSMOBILE AND BUICK COMPACT SEDANS AND COUPES FORD SAID IT OPERATED DAILY OVERTIME THIS WEEK AT ALL ITS US ASSEMBLY LOCATIONS EXCEPT ITS WIXOM MICH LUXURYCAR PLANT ST LOUIS AEROSTAR MINIVANASSEMBLY PLANT AND ITS TAURUS/SABLE FACTORIES IN CHICAGO AND ATLANTA CHRYSLER SAID IT PLANS OVERTIME AT ALL ITS US ASSEMBLY PLANTS EXCEPT THE TOLEDO OHIO ASSEMBLY PLANT THAT BUILDS JEEP CHEROKEE AND WRANGLER MODELS ALTOGETHER THE AUTO MAKERS PLAN TO BUILD 253497 CARS AND TRUCKS THIS WEEK UP 11 FROM THE 228635 VEHICLES BUILT IN THE SAME WEEK LAST YEAR COROLLA 9404290023 940429 THE DANGER FACING SOUTH AFRICA BY LEON LOUW THE VOTES WILL SOON BE COUNTED IN SOUTH AFRICA'S FIRST ALLRACE ELECTION THERE IS LITTLE DOUBT THAT THE AFRICAN NATIONAL CONGRESS WILL EMERGE AS THE EVENTUAL WINNER BUT THE WEST SHOULDN'T BLINDLY APPLAUD THE OUTCOME THE WAY THE ELECTION HAS BEEN CONDUCTED RAISES GRAVE DOUBTS ABOUT THE FUTURE OF LIBERAL DEMOCRACY IN SOUTH AFRICA IN THE PERIOD PRECEDING THE VOTE THE ANC FORMED A STRANGE NEW ALLIANCE WITH THE NATIONAL PARTY THE CREATORS OF APARTHEID IT'S LIKE THE SITUATION GEORGE ORWELL DESCRIBED IN ANIMAL FARM WHERE THE FORMER OPPRESSOR AND THE ONETIME OPPRESSED HAVE FALLEN IN LOVE WITH EACH OTHER AND LOOK INCREASINGLY INDISTINGUISHABLE BOTH PARTIES ARE SO INTOXICATED WITH THE PROSPECT OF A NEW RULING ORDER THAT THEY ARE NOT WILLING TO CONCEDE EVEN THE SLIGHTEST AMOUNT OF LIMITATION ON GOVERNMENT POWER WHICH WOULD GO A LONG WAY TO ENSURING PEACE THIS HELPS TO EXPLAIN SOME OTHER ODD ALLIANCES SUCH AS THAT BETWEEN THE ZULUBASED INKATHA FREEDOM PARTY AND THE WHITE RIGHTWING SEPARATISTS THE PEOPLE WHO ARE GOVERNED FEAR THAT THEY WILL BE ABUSED BY THOSE WHO WILL GOVERN INKATHA AND THE RIGHTWING SEPARATISTS ARE NOT FIGHTING FOR SYMBOLS THEY ARE FIGHTING AGAINST THE FEAR OF STATE OPPRESSION THESE FEARS ARE JUSTIFIED BY THE WAY THE ANCNATIONAL PARTY ALLIANCE HAS RUN THE ELECTIONS RECENT DAYS HAVE SEEN ONE STORY AFTER ANOTHER OF VOTE FRAUD MILLIONS OF BALLOTS HAVE SIMPLY DISAPPEARED THE POLICE ARE INVESTAIGATING CHARGES THAT OFFICIALS OF THE INDEPENDENT ELECTORAL COMMISSION WHOSE JOB IS TO ENSURE A FAIR VOTE OPENED SWITCHED AND STUFFED BALLOTS IN A CHURCH IN THE EASTERN CAPE THE INKATHA PARTY DID NOT APPEAR ON BALLOTS IN NATAL WHERE MUCH OF ITS SUPPORT IS CONCENTRATED BUT THE BIGGEST FRAUD IS WHAT HAPPENED IN THE MONTHS LEADING UP TO THE VOTING THE ANC AND THE NATIONAL PARTY HAVE USED THE STATEOWNED BROADCASTING CORPORATION AND A TAXPAYERFUNDED PROPAGANDA CAMPAIGN TO PROMOTE THEIR OWN POLICIES ON KEY ISSUES THEY HAVE ALSO DECLARED A STATE OF EMERGENCY OVER NEARLY A QUARTER OF THE POPULATION IN THE ONLY PART OF THE COUNTRY NATAL WHERE THEY ARE NOT ASSURED OF VICTORY THERE HAS ALSO BEEN DISCRIMINATION AGAINST AND INTIMIDATION OF HOMELAND LEADERS WHO DID NOT SHIFT THEIR ALLEGIANCE TO THE ANC THOUSANDS OF VOTERS HAVE BEEN KILLED INJURED OR TERRORIZED IN PREELECTION VIOLENCE VOTER EDUCATION MEETINGS INCLUDING ONES BY MY OWN ORGANIZATION THE FREE MARKET FOUNDATION HAVE BEEN PREVENTED OR BROKEN UP THE INTIMIDATION OF WOULDBE AND EXISTING BLACK CANDIDATES HAS BEEN EXTENSIVE AND EFFECTIVE ON BEHALF OF THE FEDERAL PARTY A SMALL FREEMARKET MULTIRACIAL GROUP I CALLED MANY FRIENDS ACQUAINTANCES AND POTENTIAL CANDIDATES VIRTUALLY ALL OF THE PARTY'S BLACK KINDRED SPIRITS WHO WOULD HAVE LIKED TO STAND FOR THE PARTY INCLUDING EMINENT INTELLECTUALS ACADEMICS AND JOURNALISTS SAID IT WOULD BE TOO DANGEROUS FOR THEM TO BE CANDIDATES AFTER A MENTION IN THE PRESS THAT TWO OF THEM WERE CONSIDERING STANDING FOR THE FEDERAL PARTY IT WAS MADE CLEAR TO THEM BY KNOWN SUPPORTERS OF THE ANC THAT THEY DARE NOT CONSIDER IT WHILE NO SPECIFIC THREATS WERE MADE THEY FEARED FOR BOTH THEIR LIVES AND THEIR CAREERS ONE CANDIDATE UNTIL RECENTLY A MEMBER OF THE MILITARY WING OF THE RADICAL PANAFRICANIST CONGRESS HAD HIS LIFE THREATENED BY HIS FORMER COMRADES ANOTHER WAS INTIMIDATED BY HIS FORMER ANC YOUTH LEAGUE COMRADES THE NIGHT BEFORE CANDIDATE LISTS WERE TO BE PRESENTED GROUPS VANDALIZED THE HOUSE AND CAR OF THE FEDERAL PARTY'S DEPUTY LEADER SAM ALEXANDER THEY SHOUTED THEY WERE GOING TO KILL HIM AS A RESULT OF THAT INCIDENT HE QUIT HIS POST BUT DON'T EXPECT TO HEAR TOO MUCH IN THE WEST ABOUT THESE EGREGIOUS VIOLATIONS OF DEMOCRATIC NORMS I RECENTLY HAD DINNER WITH SOME DIPLOMATS INCLUDING A SENIOR OFFICIAL IN THE UNITED NATIONS OBSERVER MISSION IN SOUTH AFRICA I MADE TWO PREDICTIONS ONE THAT THIS WEEK'S ELECTION WILL IN NO WAY BE FAIR AND FREE BECAUSE OF THE DEGREE OF INTIMIDATION AND VIOLENCE AND TWO THAT THE UN AND THE INDEPENDENT ELECTION COMMISSION WILL DECLARE IT TO BE FAIR AND FREE I THOUGHT THE OFFICIAL WOULD RESENT ANY IMPUGNING OF THE UN'S OBJECTIVITY OR COMPETENCE BUT TO MY SURPRISE HE AGREED WITH ME HE WENT ON TO ASSERT THAT THE VAST MAJORITY IN SOUTH AFRICA AND THE INTERNATIONAL COMMUNITY WANTED A FAIR ELECTION SO THAT OUTCOME WOULD BE ANNOUNCED UNLESS SOME BLATANT AND INESCAPABLE CONFLAGRATION FORCED THE UN TO DECLARE OTHERWISE THIS IS PRECISELY THE WRONG APPROACH WE MUST NOT WHITEWASH THE OUTCOME WE HAVE LEARNED THAT FLAWED ELECTIONS DO NOT LEAD TO MORE PERFECT UNIONS KENYA ANGOLA ETHIOPIA AND CAMEROON ARE SOME RECENT EXAMPLES OF THIS PROBLEM IN SUCH CASES INCREASED US AID AND THE PERCEPTION OF TURNING A BLIND EYE ONLY ENCOURAGES THE THUGS AND DISCOURAGES THE DISENFRANCHISED THIS BECOMES A PRESCRIPTION FOR DISASTER NOT DEMOCRACY SOUTH AFRICA MUST AVOID SIMPLY SHIFTING FROM ONE FORM OF CENTRALIZED STATE AUTHORITARIANISM TO ANOTHER THE ABSENCE OF APARTHEID DOES NOT MEAN THE PRESENCE OF LIBERTY THAT IS AN EASY MISTAKE TO MAKE HAROLD SYMMS OF THE MARTIN LUTHER KING CENTER OBSERVED TO ME TWO WEEKS AGO THAT PEOPLE HAVE BEEN SO FOCUSED ON WHAT HAS TO BE SMASHED AND GOTTEN RID OF THAT INADEQUATE ATTENTION HAS BEEN GIVEN TO WHAT REPLACES IT THE SENSE OF RELIEF AND EUPHORIA THAT APARTHEID IS GONE VERY EASILY LEADS ONE TO CONCLUDE THAT WHAT'S IN ITS PLACE IS ACCEPTABLE WE ALL WANT TO BELIEVE THAT BUT WE KNOW THAT IN THE LAW MORAL INTENT DOES NOT ENSURE MORAL OUTCOME THE US NOW MUST CALL FOR A TRULY FREE AND DEMOCRATIC SOUTH AFRICA ONE COMMITTED TO THE PROTECTION OF THE WIDEST RANGE OF CIVIL AND HUMAN RIGHTS AND POLITICAL AND ECONOMIC FREEDOMS AFTER PRESSING FOR AN END TO APARTHEID AMERICANS MUST NOW PRESS THE ANC AND THE NATIONAL PARTY NOT TO ESTABLISH A REPRESSIVE STATE APPARATUS AMERICANS SHOULD REMEMBER THAT ONE CANNOT LAY CLAIM TO A VICTORY WITHOUT ALSO ACCEPTING A MEASURE OF RESPONSIBILITY FOR WHAT FOLLOWS MR LOUW CHAIRMAN OF THE FREE MARKET FOUNDATION OF SOUTH AFRICA WAS ONE OF FOUR WHITES TO GIVE PAPERS AT THE ANC'S 1987 DAKAR CONFERENCE ON ENDING APARTHEID 9404290022 940429 BUSINESS BRIEF KENNECOTT CORP BUYS COLOWYO COAL CO FROM WR GRACE KENNECOTT CORP SAID IT AGREED TO PURCHASE THE COLOWYO COAL CO FROM WR GRACE & CO IN A COMPLICATED TRANSACTION THAT WILL LEAVE GRACE WITH 233 MILLION AND A SMALL INTEREST IN COLOWYO AS A LIMITED PARTNER UNDER TERMS OF THE TRANSACTION GRACE WILL RECEIVE 220 MILLION FROM FINANCING THAT IS SECURED BY SOME LONGTERM COAL CONTRACTS THAT FINANCING IS CURRENTLY BEING NEGOTIATED BY COLOWYO IN ADDITION KENNECOTT WILL PAY 13 MILLION IN CASH AND BECOME THE GENERAL PARTNER OF COLOWYO WITH SUBSTANTIALLY ALL OF THE ECONOMIC INTEREST IN THE COLOWYO MINE IN COLORADO FURTHER GRACE RETAINS 100 INTEREST IN A 20 MILLION ESCROW ACCOUNT FUNDED BY THE CITY OF COLORADO SPRINGS THAT IS CURRENTLY TIED UP IN LITIGATION KENNECOTT BASED IN SALT LAKE CITY IS A UNIT OF BRITAIN'S RTZ CORP GRACE CALLED THE PLANNED TRANSACTION THE FINAL STEP OF THE COMPANY'S DIVESTITURE OF ITS ONCE SUBSTANTIAL ENERGY OPERATIONS THE SALE ALSO MARKS THE LATEST MOVE IN GRACE'S ONGOING STRATEGY OF SHEDDING NONCORE BUSINESS TO FOCUS ON ITS SPECIALTYCHEMICAL AND HEALTHCARE LINES GRACE SAID IT WILL RECORD AN UNDISCLOSED LOSS FROM THE COLOWYO SALE BUT THAT EARNINGS WON'T BE AFFECTED BECAUSE THE LOSS IS COVERED BY A RESERVE TAKEN IN MID1993 SEPARATELY GRACE DISCLOSED THAT FIRSTQUARTER NET HELPED BY A SOLID INCREASE IN EARNINGS AND REVENUE FROM ITS HEALTHCARE LINES CLIMBED TO 382 MILLION OR 41 CENTS A SHARE FROM THE YEAREARLIER 283 MILLION OR 31 CENTS A SHARE THE LATEST PERIOD WAS BUFFETED BY A 40 MILLION PRETAX CHARGE COVERING ENVIRONMENTAL AND RESTRUCTURING COSTS AS WELL AS A PRETAX GAIN OF 27 MILLION FROM GRACE'S SALE OF RESTAURANT INTERESTS SALES ROSE 92 TO 108 BILLION FROM 9862 MILLION 9404290021 940429 VIETNAM SEEKS TO TURN CHINA BEACH INTO A BOOMING ATTRACTION FOR TOURISTS BY MIRIAM JORDAN STAFF REPORTER OF THE WALL STREET JOURNAL CHINA BEACH VIETNAM THE LAST TIME THOUSANDS OF FOREIGNERS DESCENDED ON THIS 20KILOMETER STRETCH OF UNBROKEN BEACH THEY SLEPT IN BARRACKS AND DOWNED ARMY CHOW NEARLY TWO DECADES LATER VIETNAM IS GROOMING CHINA BEACH AS A DESTINATION FOR ANOTHER KIND OF FOREIGNER DEEPPOCKETED TOURISTS US SOLDIERS HAVE BEEN GONE FROM THESE SPARKLING WHITE SANDS A LONG TIME BUT WESTERN INVESTORS INCLUDING SEVERAL FROM THE US ARE TROOPING IN TO TAP THE AREA'S POTENTIAL BY TEAMING UP WITH PRAGMATIC LOCAL OFFICIALS EAGER TO USE TOURISM TO JUMPSTART THE SPUTTERING ECONOMY WE LOOKED AT A NUMBER OF BEACHES IN VIETNAM WE DECIDED THIS IS THE ONE WE WANTED TO BE ON SAYS ROBERT BERNSTEIN PRESIDENT OF CHEVY CHASE MARYLANDBASED BBI INVESTMENT GROUP CHARTERED WHICH AIMS TO BUILD VIETNAM'S BIGGEST RESORT HERE EVEN THE BEACH'S NAME CELEBRATED IN A 1980S AMERICAN TELEVISION SERIES IS MAGICAL TO MR BERNSTEIN THERE'S ONLY ONE CHINA BEACH HE SAYS THE LOCATION EXCITES DEVELOPERS TOO MIDWAY BETWEEN HANOI AND HO CHI MINH CITY THE BEACH IS A 20MINUTE DRIVE FROM DANANG WHICH HAS A USBUILT AIRPORT THAT CAN HANDLE BOEING 747S VACATIONERS WHO TIRE OF SUN AND SURF CAN ESCAPE TO CENTRAL VIETNAM'S MAIN CULTURAL SITES THIRTY MINUTES AWAY IS THE ANCIENT PORT TOWN OF HOI AN TWO HOURS NORTH IS THE IMPERIAL CITY OF HUE AND AN HOUR SOUTHWEST IS MY SON SITE OF RUINS FROM THE CHAM CIVILIZATION CENTRAL VIETNAM IS GOING TO BE THE TOURISM MECCA MR BERNSTEIN SAYS IT HAS ALL THE LOGISTICAL PROBLEMS RESOLVED THERE ARE VERY ATTRACTIVE SITES FOR TOURISTS THE BEACH IS SUBSTANTIAL CLEAN AND THE WATER IS CLEAR ADDS RICHMOND MAYO SMITH AN AMERICAN PARTNER IN INDOCHINA BEACH HOTEL LTD WHICH IS BUILDING A 200ROOM RESORT HERE IT'LL BE THE CLOSEST VACATION SPOT TO TAIWAN JAPAN AND KOREA THE POTENTIAL IS SCARY BOTH INVESTORS AND LOCAL OFFICIALS ARE THINKING LONG TERM THEY VOW TO AVOID REPEATING MISTAKES MADE BY BEACH RESORTS ELSEWHERE IN SOUTHEAST ASIA TOWARD THAT END FOREIGN INVESTORS ARE LECTURING VIETNAMESE OFFICIALS ABOUT THE NEED TO PRESERVE THE ENVIRONMENT AND PLAN DEVELOPMENT ONE GROUP OF INVESTORS HAS EVEN SPENT 1 MILLION ON A MASTER PLAN THAT GIVES AUTHORITIES GUIDELINES FOR TOURISM DEVELOPMENT IN THE AREA IT'S A VERY FRAGILE ENVIRONMENT CAUTIONS JOHN BRITTON CHAIRMAN OF ASIAPACIFIC SECURITIES LTD THE AUSTRALIAN COMPANY THAT SPONSORED THE STUDY IF THE PLAN IS NOT CAREFULLY DRAWN AND EXECUTED IT WON'T TAKE MUCH TO WRECK IT ASIAPACIFIC SECURITIES PLANS TO DEVELOP DANANG'S FIRST DELUXE HOTEL BY TRANSFORMING A FRENCHSTYLE VILLA THAT ONCE SERVED AS THE US CONSULATE NGUYEN XUAN PHUC DIRECTOR OF THE PROVINCIALTOURIST OFFICE DANA TOURS AND A SENIOR MEMBER OF THE POWERFUL CITY COUNCIL THE PEOPLE'S COMMITTEE HAS VISITED RESORTS IN MALAYSIA AND THAILAND AFTER SEEING THE SCOURGE OF ILLCONCEIVED DEVELOPMENT IN THE NOWPOLLUTED THAI SEASIDE TOWN OF PATTAYA AND THE SUCCESS OF CONTROLLED DEVELOPMENT IN THAILAND'S PHUKET RESORT AREA HIS MIND IS MADE UP WE HAVE CHOSEN THE PHUKET MODEL HE SAYS ADDING WE'RE STILL NOT EMULATING EVERYTHING THEY'VE DONE ONLY WHAT SUITS US INVESTORS IN MR SMITH'S 24 MILLION INDOCHINA BEACH HOTEL HAVE SPONSORED OVERSEAS TRIPS FOR TWO GROUPS OF LOCAL OFFICIALS A THIRD GROUP WILL TRAVEL SOON THE TRIPS ACCORDING TO MR SMITH ARE THE MOST USEFUL AND PRODUCTIVE WAY TO TEACH DECISIONMAKERS ABOUT THE COMPLEXITIES OF RESORT DEVELOPMENT THEY HAVE TO SEE IT TO UNDERSTAND HE SAYS JAMES KAPLAN A HONG KONGBASED TOURISM CONSULTANT WHO ADVISES THE BBI GROUP RECALLS THE FIRST PRESENTATIONS HE MADE TO DANANG AUTHORITIES ABOUT RESORT DEVELOPMENT THEMES INCLUDED THE ATTRIBUTES OF KEEPING SAND DUNES INTACT AND WHY A GOLF COURSE BRINGS VALUE TO THE LAND THE OFFICIALS HAD NO IDEA WHAT GOLF WAS MR KAPLAN SAYS WE SHOT GOLF BALLS ON THE SAND DUNES TO SHOW THEM WHAT IT'S ALL ABOUT THE INVESTORS' CAMPAIGN AGAINST BEACH BLIGHT SEEMED IN JEOPARDY SIX MONTHS AGO WHEN A TAIWANESE BUSINESSMAN ASKED LOCAL OFFICIALS TO APPROVE A 40STORY CONCRETE TOWER ON THE SHORE BUT MR KAPLAN AND SOME INVESTORS MANAGED TO CONVINCE OFFICIALS OF THE NEED TO BAN HIGHRISE HOTELS UNCERTAINTY ALSO REIGNED LAST YEAR AFTER THE GOVERNMENT APPROVED CONSTRUCTION OF A 20 MILLION EXPORTPROCESSING ZONE ON THE EDGE OF DANANG IN PARTNERSHIP WITH MASS CORP A MALAYSIAN CONSORTIUM RESORT DEVELOPERS AND THEIR LOCAL PARTNERS CLAMORED TO STOP A PLANT FROM GOING UP WITHIN VIEW OF CHINA BEACH A CALL THAT THE GOVERNMENT EVENTUALLY HEEDED THE LOCAL COUNCIL ALSO RULED THAT ONLY LIGHT INDUSTRY SUCH AS ELECTRONICS ASSEMBLY WOULD BE ALLOWED IN THE ZONE THE LECTURES AND TRIPS APPEAR TO BE PAYING OFF WE KNOW THE MAIN REASON FOREIGN TOURISTS COME TO DANANG IS THE NATURAL BEAUTY SAYS MR PHUC OF THE PROVINCIALTOURISM OFFICE WE MUST PRESERVE IT HE POINTS TO A COLORCODED MAP ON HIS WALL PART OF ASIAPACIFIC SECURITIES' TOURISM PLAN FOR THE PROVINCE NO BUILDING MORE THAN FOUR STORIES HIGH WILL BE ALLOWED TO GO UP ALONG THE BEACH MR PHUC SAYS AN OLD CITY PLAN TO PAVE A ROAD ALONG THE SEASHORE HAS BEEN SCRAPPED HE REPORTS AND THE AUTHORITIES WILL PROVIDE FOR PROPER SEWAGE TREATMENT BUT MR BRITTON OF ASIAPACIFIC SECURITIES SAYS THE VIETNAMESE WILL HAVE TO BE VERY DISCIPLINED TO WITHSTAND THE ALLURE OF A LOT OF CASH INTEREST FROM FOREIGN ENTREPRENEURS IS SO HIGH THAT MR PHUC SOMETIMES MEETS THREE DELEGATIONS A DAY HE PRODUCES A LIST OF PROJECTS UNDER REVIEW BUT NOTES HIS TEAM HAS TURNED DOWN SEVERAL BECAUSE THEY WEREN'T ENVIRONMENTALLY SOUND SO FAR DANA TOURS HAS SIGNED AGREEMENTS WITH INDOCHINA BEACH HOTEL AND ASIAPACIFIC SECURITIES THE PROVINCIAL TOURISM BODY HAS ALSO SIGNED MEMORANDUMS OF UNDERSTANDING WITH OTHER FOREIGN INVESTORS PLANNING HOTELRELATED PROJECTS INCLUDING TWO 15 MILLION BUNGALOW RESORTS THE STAKES ARE HUGE FOR DANANG AND THE SURROUNDING PROVINCE OF QUANG NAMDANANG BBI'S 280 MILLION CHINA BEACH RESORT PROJECT ALONE IS TWICE THE TOTAL VALUE OF FOREIGN INVESTMENT LICENSED IN THE PROVINCE SINCE 1988 TRAN CONG CUONG A FORMER VIET CONG OFFICER WHO NOW HEADS A CITY TOURISM AUTHORITY THAT IS ACTING AS BBI'S PARTNER IN THE PROJECT GROWS STARRYEYED WHEN HE EXPOUNDS ON THE POTENTIAL BENEFITS FOR IMPOVERISHED DANANG A CITY OF 500000 WHERE UNEMPLOYMENT IS A MAJOR PROBLEM ALTHOUGH BBI AND MR CUONG'S OFFICE HAVE SIGNED A JOINTVENTURE AGREEMENT THE PROJECT IS SO LARGE THAT IT MUST AWAIT THE CENTRAL GOVERNMENT'S APPROVAL MR CUONG IS ANXIOUS TO BREAK GROUND IF WE CAN GET THIS PROJECT DONE IT WILL BRING GREAT RESULTS FOR OUR ECONOMY HE GUSHES IT WILL TAKE THOUSANDS OF LABORERS TO BUILD AND OPERATE BBI WAS SO ANXIOUS TO STAKE ITS CLAIM IN CHINA BEACH THAT IT LAST YEAR SECURED A US TREASURY DEPARTMENT EXEMPTION TO WASHINGTON'S EMBARGO ENABLING IT TO START SIGNING CONDITIONAL AGREEMENTS BEFORE THE EMBARGO WAS LIFTED IN FEBRUARY ALFONSO DEMATTEIS AN OFFICER OF NEW YORKBASED DEMATTEIS CONSTRUCTION CORP PLANS A 140 MILLION RESORT PROJECT FOR CHINA BEACH INCLUDING HOTELS TOWN HOUSES A CONFERENCE CENTER AND AN AQUARIUM BUT HE INTENDS TO HEDGE HIS BETS BY BUILDING THE PROJECT IN PHASES IF THINGS GO WRONG HE SAYS HIS COMPANY CAN QUICKLY CUT ITS LOSSES IF IT DOESN'T WORK I'M OUT AFTER ONE HOTEL HE SAYS SO FAR CHINA BEACH'S TOURIST FACILITIES AREN'T EXACTLY DAZZLING THE ONLY SEASIDE HOTEL CURRENTLY OPERATING ON THE BEACHTHE NON NUOC IS A CEMENT BOX WITH 120 DRAB ROOMS CLOTHESLINES STRETCH ACROSS ITS SHABBY TENNIS COURTS EMPLOYEES SLUMBER IN A BUILDING LABELED STEAM BATH HOUSE THERE'S NO SWIMMING POOL AND A BOATHOUSE IS BOARDED UP MOST OF THE PEOPLE FROLICKING ON CHINA BEACH THESE DAYS ARE FRENCH TRAVELERS ON PACKAGE TOURS NOW THAT THE US HAS LIFTED ITS EMBARGO ON BUSINESS WITH VIETNAM HOWEVER INVESTORS AND TOURISM OFFICIALS ARE COUNTING ON AMERICANS TO STORM THE BEACH THAT SPAWNED A TELEVISION SERIES AS ONE CONSULTANT SEES IT SELLING CHINA BEACH TO AMERICANS IS LIKE SELLING THEM COCACOLA 9404290020 940429 NEW JERSEY UNVEILS PLAN TO REDEVELOP MEADOWLANDS AREA EAST RUTHERFORD NJ THE NEW JERSEY SPORTS AND EXPOSITION AUTHORITY UNVEILED AN 850 MILLION PLAN TO EXPAND AND REDEVELOP THE MEADOWLANDS SPORTS COMPLEX THE PLAN WHICH HAS BEEN IN THE WORKS FOR NINE MONTHS CALLS FOR A MAJOR TRANSPORTATION CENTER THAT WOULD LINK THE SITE TO ALL MAJOR COMMUTER RAILWAYS IT ALSO CALLS FOR AN ADJACENT HOTEL AND ENTERTAINMENT AND RETAIL BUSINESS DEVELOPMENT ALTHOUGH THERE HAS BEEN CONSIDERABLE SPECULATION THAT THE STATE MIGHT SEEK TO ATTRACT THE NEW YORK YANKEES BASEBALL TEAM THE PROPOSAL DIDN'T INCLUDE PLANS FOR A BASEBALL STADIUM THE AUTHORITY SAID IT WOULD SEEK STATE AND FEDERAL FUNDS TO FINANCE THE RAIL LINK AND TO REROUTE ROUTE 120 WHICH BISECTS THE COMPLEX TO A PERIMETER ROAD AROUND THE ARENA THE COST OF THE RAIL LINK IS ESTIMATED AT ABOUT 137 MILLION WHILE REROUTING THE ROAD WILL COST ABOUT 55 MILLION AN AUTHORITY SPOKESMAN SAID ADDING THAT FUNDING FOR THOSE PROJECTS HOPEFULLY WILL COME OUT OF EXISTING FUNDS FOR SUCH PROJECTS THE SPORTS AUTHORITY WILL SEEK FINANCING FROM PRIVATE DEVELOPERS FOR THE REMAINING PARTS OF THE PLAN THE SPOKESMAN SAID THE AUTHORITY WILL BEGIN A FORMAL PROPOSAL PROCESS WITH DEVELOPERS THE ENTIRE PLAN MUST BE APPROVED BY GOV CHRISTINE WHITMAN WHO HAS ENCOURAGED LOOKING INTO TURNING SOME FUNCTIONS AT THE SPORTS AUTHORITY OVER TO PRIVATE PARTIES SUCH AS THE RACETRACK A SPOKESMAN FOR THE NEW GOVERNOR SAID SHE HAD RECEIVED A PRELIMINARY BRIEFING ON THE PLAN AND FOUND INTERESTING ENOUGH TO HEAR MORE ABOUT IT THE PLAN REPRESENTS THE FIRST MAJOR EFFORT AT DEVELOPING THE 750ACRE SITE SINCE 1981 WHEN THE ARENA HOUSING THE NEW JERSEY NETS BASKETBALL TEAM AND THE NEW JERSEY DEVILS HOCKEY TEAM WAS COMPLETED THE COMPLEX ALSO INCLUDES GIANTS STADIUM AND THE MEADOWLANDS RACETRACK 9404290019 940429 WHO'S NEWS ARMSTRONG WORLD INDUSTRIES INC ARMSTRONG WORLD INDUSTRIES INC LANCASTER PA GEORGE A LORCH PRESIDENT AND CHIEF EXECUTIVE OF THIS PRODUCER OF FLOOR COVERINGS AND BUILDING PRODUCTS WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN AS EXPECTED MR LORCH 52 YEARS OLD SUCCEEDS WILLIAM W ADAMS WHO IN FEBRUARY SAID HE WOULDN'T SEEK REELECTION TO THE POST AND PLANNED TO RETIRE ARMSTRONG ALSO NAMED ALAN L BURNAFORD 54 VICE PRESIDENT AND DIRECTOR OF ASIAN OPERATIONS HE WAS PREVIOUSLY GENERAL MANAGER OF ARCHITECTURAL BUILDING PRODUCTS OPERATIONS IN EUROPE DAVID J FEIGHT 51 DIRECTOR OF BUSINESS DEVELOPMENT WAS GIVEN THE ADDITIONAL TITLE OF VICE PRESIDENT STEPHEN STOCKWELL 49 WAS APPOINTED VICE PRESIDENT AND GENERAL MANAGER OF ARMSTRONG'S NEW CORPORATE RETAIL ACCOUNTS DIVISION HE WAS PREVIOUSLY GENERAL MANAGER OF RESIDENTIAL SALES IN THE COMPANY'S FLOOR DIVISION 9404290018 940429 THE AMERICAS THE PRICE MEXICO MUST PAY FOR MODERNIZATION BY HECTOR AGUILAR CAMIN MEXICO CITY REALITY SOMETIMES LOOKS MORE LIKE THE IMAGINATION OF A BAD NOVELIST THAN ANYTHING ELSE EVEN A BAD WRITER COULD CONVINCE HIS READERS THAT THE RECENT ASSASSINATION OF MEXICAN PRESIDENTIAL CANDIDATE LUIS DONALDO COLOSIO WAS THE WORK OF A SYSTEM THAT REFUSES TO DIE AND IS WILLING TO KILL TO PRESERVE ITSELF WHAT'S MORE WHEN THE ASSASSINATION IS ADDED TO SOME OF THE OTHER EVENTS IN MEXICO DURING THE FIRST QUARTER OF 1994 NOTABLY THE UPRISING IN CHIAPAS AND THE KIDNAPPING OF A WELLKNOWN BANKER THE NOVELIST WOULDN'T HAVE TO INVENT ANYTHING TO SELL THE IDEA THAT WHAT IS HAPPENING IN MEXICO IS A CALCULATED EFFORT AT DESTABILIZATION I DON'T LIKE BAD NOVELS AND I TEND TO DISBELIEVE THEORIES ABOUT THE MACHINATIONS OF DARK FORCES AGAINST DEFENSELESS SOCIETIES BUT THE BAD NOVEL ABOUT A CONSPIRACY IS BEING WRITTEN IN THE IMAGINATION OF MANY MEXICANS WHO BELIEVE DISAFFECTED POLITICIANS ARE BEHIND BOTH THE CHIAPAS UPRISING AND THE MURDER OF MR COLOSIO AT SUCH MOMENTS IT'S ALWAYS VALUABLE TO STEP BACK FROM THE RUMORS AND REEVALUATE WHAT WE DO KNOW PARTICULARLY WHAT WE KNOW ABOUT MEXICAN HISTORY THIS YEAR'S EVENTS IN MEXICO CALL TO MIND SAMUEL HUNTINGON'S POLITICAL ORDER IN CHANGING SOCIETIES IN CONTRAST TO THE CONVENTIONAL IDEA THAT BACKWARDNESS IS THE SOURCE OF POLITICAL INSTABILITY THE BOOK SUGGESTS THAT CHANGES IN THE EXISTING POLITICAL ORDER RESULT FROM THE FORCES OF MODERNIZATION WHICH ATTEMPT TO BRING A COUNTRY UP TO DATE WITH THE REST OF THE WORLD THE PROCESS OF MODERNIZATION INTERRUPTS AND CHALLENGES THE TRADITIONAL RHYTHM OF SOCIETIES MODERNIZATION FORCES HABITS TO CHANGE IT DESTROYS ALLIANCES AMONG MANY ELEMENTS OF SOCIETY IT REJECTS INERTIA AND DISRUPTS THE BALANCE OF SOCIETY IN MANY WAYS FEW COUNTRIES OFFER CLEARER EXAMPLES OF MR HUNTINGTON'S HYPOTHESIS THAN MEXICO INDEPENDENCE FROM SPAIN CAN BE UNDERSTOOD AS A RESPONSE TO SPANISHDOMINATED COLONIAL SOCIETY AND TO THE MODERNIZING OFFENSIVE UNLEASHED BY THE BOURBON KINGS ON THEIR FOREIGN TERRITORIES DURING THE MID18TH CENTURY DURING THE 19TH CENTURY THE TRIUMPH OF LIBERAL MODERNITY IN A COUNTRY THAT WAS ESSENTIALLY FEUDAL IN TERMS OF ITS SOCIAL STRUCTURES RESULTED IN FIVE DECADES OF UPHEAVAL INCLUDING REBELLIONS CIVIL WARS AND FOREIGN INVASIONS THE MEXICAN REVOLUTION OF 1910 WAS IN MANY WAYS A RESPONSE TO THE MODERNIZING EFFORTS UNDERTAKEN BY PORFIRIO DIAZ IN THE LATE 19TH CENTURY THE PORIFIRIAN MODERNIZATION WAS FELT AS AN AFFRONT TO BOTH THE RIGHTS OF RURAL PEOPLE AND TO THE PRIDE OF LONGESTABLISHED WELLTODO FAMILIES THREATENED BY FOREIGN INVESTMENT THE PROCESS OF MODERNIZATION THAT BEGAN IN MEXICO IN 1982 WHICH WAS ROOTED IN THE FAILURE OF ITS PREVIOUS DEVELOPMENT MODEL HAS BEEN EVERY BIT AS RADICAL AND THE GRIEVANCES FELT BY DIFFERENT SECTORS OF SOCIETY HAVE BEEN EVERY BIT AS PRONOUNCED AS THE MODERNIZATION PROCESSES UNDERTAKEN BY THE BOURBON KINGS OR DURING THE LIBERAL OR PORFIRIAN PERIODS THE CENTRAL CONTRADICTION OF THE PAST 14YEAR MODERNIZATION PROCESS IS PRECISELY WHAT MAKES IT VIABLE THE CHANGES WERE IMPOSED FROM ABOVE THROUGH THE TRADITIONAL INSTRUMENTS OF CORPORATE POLITICAL CONTROL AND PRESIDENTIAL POWER BUT AS A RESULT OF THE VERY CHANGES BEING IMPLEMENTED PRESIDENTIAL POWER HAS ERODED OPPOSITION POLITICS HAVE PROSPERED THE RULING INSTITUTIONAL REVOLUTIONARY PARTY PRI DIVIDED ITS RANKS IN 1987 AND THE 1988 ELECTIONS WERE THE MOST HIGHLY CONTESTED IN THE HISTORY OF THE COUNTRY THE 1994 ELECTIONS WILL BE EVEN MORE COMPETITIVE THE PRI HAS GIVEN UP MANY OF ITS TRADITIONAL POLITICAL INSTRUMENTS AS THE PRICE OF IMPLEMENTING REFORM FROM ABOVE I RESPECT AND ADMIRE THE WILLINGNESS OF OUR LEADERS TO TAKE THE RISKS AND MAKE THE COMMITMENTS NECESSARY TO INSTITUTE THE REFORMS THAT ARE MODERNIZING MEXICO PARTICULARLY SINCE THEY KNOW THAT SUCH MEASURES INCUR IMMEDIATE COSTS AND ONLY LONGTERM BENEFITS THE IMMEDIATE PLATE HOLDS AN ECONOMY WITH LITTLE GROWTH AND LOW SALARIES ACUTE UNEMPLOYMENT EXPENSIVE FINANCING A DEPRESSED MARKET AND CAUTIOUS FOREIGN INVESTORS WARY OF INVESTING BECAUSE OF THE CHIAPAS UPRISING AND COLOSIO ASSASSINATION AND BIDING THEIR TIME UNTIL THE AUGUST ELECTIONS BUT THERE'S ALSO A POLITICAL COST IN ADDITION TO THE USUAL QUEUE OF GROUPS AND INDIVIDUALS DEMANDING THEIR DUE IN THE LAST YEAR OF A MEXICAN ADMINISTRATION THERE WILL BE A LARGE NUMBER OF DISPLACED POLITICIANS SEEKING THEIR FINAL PERKS THE SALINAS ADMINISTRATION INITIATED AN UNPRECEDENTED NUMBER OF SHIFTS IN CABINET AND SUBCABINET MEMBERS STATE GOVERNORS AND ASPIRING PRESIDENTIAL CANDIDATES AS A RESULT THE POLITICAL ASPIRATIONS OF MANY WERE DASHED NOT ONLY THOSE OF THE POLITICIANS WHO WERE REPLACED BUT THEIR ENTIRE TEAMS' IN ADDITION THE GOVERNMENT MUST ALSO DEAL WITH THE POLITICAL COSTS OF AN INCOMPLETE ECONOMIC MODERNIZATION THE PERSISTENT CRITICISM OF UNEMPLOYMENT AND POVERTY THE MANY ECONOMIC INTERESTS AND SECTORS THAT HAVE BEEN HARMED BY THE MODERNIZATION PROCESS SKEPTICISM ABOUT FUTURE BENEFITS AND NOSTALGIA FOR A PAST THAT PROVIDED MORE CERTAINTY BUT PERHAPS EVEN MORE PRESSING THAN ALL OF THESE ACCUMULATED DEBTS THIS YEAR WILL ALSO SEE THE CONTEST THAT IN MY JUDGMENT ENCOMPASSES ALL THE OTHERS THE CONTEST UNLEASHED BY THE FORCES OF MODERNIZATION IN THE IMAGINATION OF THE NATION THE CARAVAN OF VIOLATED TABOOS SHAKEN IDENTITIES AND DISCREDITED VALUES THAT HAS FORMED IN THE RADICAL TRANSITION OF THE NATION FROM ITS LONGHELD NATIONALISTIC STATIST AND PROTECTIONIST TRADITIONS THE CULTURAL INTENSITY OF THAT TRANSITION AND THE LONG LINE OF POLITICAL CASUALTIES EXPLAIN IN PART THE INQUISITORIAL FERVOR THAT PRESIDENT CARLOS SALINAS DE GORTARI'S PROGRAMS HAVE ELICITED FROM THEIR CRITICS AND EVEN FROM FORMER SUPPORTERS WHO DON'T FEEL THEY HAVE BEEN REWARDED PROPERLY ALL OF THESE REAL AND PERCEIVED GRIEVANCES BROUGHT ABOUT THROUGH THE STRUGGLE FOR MODERNIZATION MAKE UP THE DEBT THAT SOCIETY PASSES ON TO THE GOVERNMENT DURING THIS ELECTION YEAR PERHAPS SOME FUTURE HISTORIAN WILL BE ABLE TO DISCOVER HOW THIS SCENARIO PRODUCED CONSPIRATORIAL FORCES RESPONSIBLE FOR THE CHIAPAS UPRISING OR THE ASSASSINATION OF MR COLOSIO THE BYPRODUCTS OF MEXICO'S MODERNIZATION PROGRAM THAT I HAVE JUST DESCRIBED DON'T EXPLAIN OR CLARIFY THESE TRAGIC EVENTS BUT THEY DO HELP US TO PLACE THEM IN HISTORICAL PERSPECTIVE AS EXPRESSIONS OF MEXICO'S HISTORIC RESISTANCE TO THE PROCESS OF MODERNIZATION MR AGUILAR CAMIN IS THE PUBLISHER OF THE MONTHLY MAGAZINE NEXOS AND THE AUTHOR OF SUBVERSIONES SILENCIOSAS SILENT SUBVERSIONS 1993 A REFLECTION ON CONTEMPORARY MEXICO 9404290017 940429 TECHNOLOGY & HEALTH AT&T TO INVEST OVER 150 MILLION IN NEW CHINA PACT BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AT&T CORP SIGNED A BROAD ACCORD WITH THE CHINESE GOVERNMENT AGREEING TO INVEST MORE THAN 150 MILLION IN NEW JOINT VENTURES IN EQUIPMENT TECHNOLOGY AND NETWORK PLANNING THE AGREEMENTS FOLLOW BY A YEAR A MEMORANDUM OF UNDERSTANDING SIGNED BETWEEN AT&T AND BEIJING THAT SET A FRAMEWORK FOR ESTABLISHING THE JOINT VENTURES AND COLLABORATION WITH AT&T BELL LABORATORIES SINCE THAT MEMORANDUM AT&T SAID IT HAS LANDED MORE THAN 500 MILLION IN CONTRACTS AND DOUBLED ITS ANNUAL REVENUE IN CHINA YESTERDAY'S AGREEMENT SIGNED AT THE COMPANY'S BASE IN BASKING RIDGE NJ BY AT&T OFFICIALS AND CHINA'S VICE PREMIER ZOU JIAHUA CALLS FOR AT&T TO BUILD TWO PLANTS FOR MAKING NETWORK SWITCHING EQUIPMENT A WAFER FAB FACILITY FOR CHIP PRODUCTION AND A BELL LABS UNIT AT&T ALREADY HAS TRANSMISSION EQUIPMENT JOINT VENTURES IN CHINA AND IT HAS SIGNED A PACT TO PRODUCE PHONES THERE AT&T ALSO AGREED TO TRIPLE ITS CURRENT WORK FORCE OF 800 IN CHINA OVER THE NEXT TWO TO THREE YEARS THE COMPANY FINDS ITSELF SMACK IN THE MIDDLE OF ONE OF THE WORLD'S HOTTEST HIGHTECH SCRAPS THE CHINESE TELECOMMUNICATIONS MARKET COULD GENERATE AT LEAST 90 BILLION IN ORDERS OVER THE NEXT SIX YEARS THE COMBATANTS INCLUDE NATIONAL CHAMPIONS SUCH AS FRANCE'S ALCATEL ALSTHOM GERMANY'S SIEMENS AG SWEDEN'S TELEFON AB LM ERICSSON AND CANADA'S NORTHERN TELECOM NORTHERN AT&T'S MAIN US RIVAL SIGNED ITS OWN ACCORD WITH THE SAME CHINESE OFFICIALS LAST WEEK WILLIAM WARWICK CHAIRMAN OF AT&T CHINA SAID THE LATEST ACCORD WON'T GUARANTEE THE COMPANY A MAJOR SHARE OF THE CHINESE MARKET NOW DOMINATED BY INCUMBENTS ALCATEL ERICSSON AND OTHERS BUT THIS IS A FOUNDATION ON WHICH TO BUILD A LONGTERM RELATIONSHIP HE SAID WE HOPE THAT LEADS TO GREATER EQUIPMENT SALES UNDER THE PACT THE TWO SWITCHING JOINT VENTURES WILL TOGETHER HAVE THE CAPACITY TO BUILD SWITCHES CAPABLE OF SERVING ABOUT TWO MILLION PHONE LINES THE PLANTS WILL BE LOCATED IN THE CITY OF CHENGDU IN SICHUAN PROVINCE AND THE CITY OF QINGDAO IN SHANDONG PROVINCE AT&T SAID IN ADDITION AT&T WILL SET UP A MICROELECTRONICS JOINT VENTURE AND FACILITY FOR DESIGNING AND MAKING SOCALLED VERY LARGE SCALE INTEGRATION DEVICES THE PLANT WILL SUPPLY CHIPS TO AT&T'S CHINA OPERATIONS AND OTHER CHINESE AND MULTINATIONAL COMPANIES THE LOCATION WILL BE ANNOUNCED THIS SUMMER THE COMPANY SAID AND UNDER A PARTNERSHIP WITH THE MINISTRY OF POSTS AND TELECOMMUNICATIONS AT&T AND THE MPT WILL JOINTLY SELL AND DEVELOP HARDWARE AND SOFTWARE FOR MONITORING AND MANAGING CHINA'S PUBLIC NETWORK AS PART OF THIS RELATIONSHIP AT&T WILL ASSIST THE COUNTRY IN PLANNING ITS NETWORK AN EXCLUSIVE ARRANGEMENT AND AT&T WILL HELP TRAIN PHONE COMPANY PERSONNEL MR WARWICK SAID 9404290016 940429 LETTERS TO THE EDITOR INDIA'S ABUSES AGAINST MUSLIMS CONGRATULATIONS ON YOUR MARCH 31 ARTICLE WHILE US SCRUTINIZES CHINA'S RECORD RIGHTS ABUSES ELSEWHERE ARE IGNORED HOWEVER YOU MAY HAVE INADVERTENTLY IGNORED THE TERRIBLE HUMANRIGHTS ABUSES COMMITTED AGAINST THE INNOCENT MUSLIM POPULATION BY INDIAN OCCUPATION FORCES IN THE DISPUTED TERRITORY OF JAMMU AND KASHMIR WHERE INDIA HAS FOR ALMOST 50 YEARS ARROGANTLY IGNORED A LEGAL UNITED NATIONSMANDATED PLEBISCITE TO DETERMINE THE POLITICAL RIGHTS OF THE KASHMIRIS THE SENSELESS BRUTALITY CONTINUES AS THE WORLD'S GREATEST DEMOCRACY THUMBS ITS NOSE AT THE UN AS IT LECTURES ITS POPULATION ON THE VIRTUES OF DEMOCRACY SUCH HYPOCRISY SHOULD NOT BE IGNORED 9404290015 940429 DIVIDEND NEWS NATIONAL PATENT DEVELOPMENT CORP NATIONAL PATENT DEVELOPMENT CORP NEW YORK SAID ITS BOARD APPROVED A PLAN TO GIVE ITS SHAREHOLDERS A 44 INTEREST IN AMERICAN DRUG CO WHICH PLANS TO DISTRIBUTE GENERIC AND PRIVATE LABEL DRUGS OVERTHECOUNTER MEDICATIONS TOILETRIES AND OTHER PRODUCTS IN RUSSIA AND THE COMMONWEALTH OF INDEPENDENT STATES FOR EACH FOUR NATIONAL PATENT COMMON OR CLASS B COMMON SHARES HOLDERS WOULD RECEIVE ONE AMERICAN DRUG SHARE PLUS A WARRANT TO PURCHASE ANOTHER SHARE AT 1 A SHARE NATIONAL PATENT A TECHNOLOGY COMPANY WOULD CONTINUE TO HOLD THE REST OF AMERICAN DRUG 9404290014 940429 WHAT'S NEWS WORLDWIDE ACCUSED SPY AMES RECEIVED A LIFE SENTENCE IN A PLEABARGAIN AGREEMENT AMES THE CIA OFFICER WHO SOLD SECRETS TO MOSCOW PROMISED TO COOPERATE WITH INVESTIGATORS IN RETURN FOR LENIENT TREATMENT FOR HIS WIFE THE JUSTICE DEPARTMENT WILL RECOMMEND THAT SHE BE GIVEN A PRISON SENTENCE OF ABOUT FOUR YEARS US PROSECUTORS SAID AMES GAVE HIS KGB HANDLERS THE NAMES OF NINE HIGHRANKING SOVIET OFFICIALS WHO WERE SECRETLY COOPERATING WITH THE US THE DISCLOSURES LED TO THE ARREST AND EXECUTIONS OF AT LEAST FOUR INVESTIGATIONS ARE BEING UNDERTAKEN TO DETERMINE HOW MUCH DAMAGE AMES CAUSED WHY HE REMAINED UNDETECTED FOR NINE YEARS AND WHO IF ANYONE MAY HAVE HELPED HIM WITHIN THE CIA SOUTH AFRICA'S PRESIDENT ANNOUNCED THAT VOTING IN THE NATION'S ALLRACE ELECTIONS WOULD BE EXTENDED BY ONE DAY IN SOME AREAS INCLUDING NATAL FOLLOWING ALLEGATIONS OF IRREGULARITIES DE KLERK SAID CONTINUATION OF THE BALLOTING INTO TODAY WOULD HELP ENSURE THAT THE ELECTION'S FAIRNESS WON'T BE CHALLENGED ISRAEL AND THE PLO SET NEXT WEDNESDAY AS THE TARGET DATE FOR SIGNING A LONGDELAYED ACCORD ON PALESTINIAN SELFRULE IN GAZA AND JERICHO ISRAEL'S RABIN AND PLO LEADER ARAFAT PLAN TO MEET TUESDAY TO TRY TO IRON OUT TWO ISSUES THE SIZE OF THE JERICHO AREA AND THE ROLE OF THE PALESTINIAN POLICE FORCE JAPAN'S NEW PRIME MINISTER FORMED A CABINET AND TRIED TO CALM JITTERS ABOUT HIS CHANCES OF STAYING IN POWER HATA'S COALITION GOVERNMENT HAS BEEN WEAKENED SINCE THE SOCIALISTS PULLED OUT THIS WEEK THE COALITION CONTROLS JUST 189 SEATS IN THE 511SEAT PARLIAMENT MAKING IT THE FIRST MINORITY GOVERNMENT SINCE 1955 YELTSIN SIGNED A NONBINDING PEACE PACT WITH MANY OF THE RUSSIAN PRESIDENT'S POLITICAL OPPONENTS INCLUDING EXTREME NATIONALIST LEADER ZHIRINOVSKY THE CIVIC ACCORD SIGNED IN A CEREMONY AT THE KREMLIN PLEDGES ALL SIDES TO REFRAIN FROM VIOLENCE IN PURSUING THEIR GOALS A SCIENTIST CONTENDED HIS RESEARCH WAS SUPPRESSED BY PHILIP MORRIS AND HE WAS FORCED TO LEAVE THE TOBACCO FIRM IN 1984 AFTER MANAGEMENT BECAME CONCERNED THAT HIS WORK ON NICOTINE'S ADDICTIVE POTENTIAL WOULD POSE A LEGAL LIABILITY A NANNY TAX MEASURE IS MOVING TOWARD PASSAGE IN CONGRESS OVER A YEAR AFTER THE ISSUE DOOMED CLINTON'S NOMINEE FOR ATTORNEY GENERAL THE BILL LIMITS INDIVIDUALS' LIABILITY TO PAY SOCIAL SECURITY LEVIES FOR HOUSEHOLD WORKERS US AND RUSSIAN ENVOYS TRIED TO RESTART BOSNIAN PEACE TALKS IN SARAJEVO BUT THEY FACED RESISTANCE FROM MUSLIM GOVERNMENT LEADERS WHO REFUSED TO NEGOTIATE UNTIL THEY WERE ASSURED THAT THE UNDESIGNATED SAFE AREA OF GORAZDE IS FREE OF SERB FORCES MEDIA MAGNATE BERLUSCONI RECEIVED A MANDATE TO FORM ITALY'S FIRST RIGHTWING GOVERNMENT SINCE WORLD WAR II AND SAID HE WOULD CREATE A WATCHDOG COMMITTEE TO PREVENT CONFLICTS OF INTEREST WITH HIS BUSINESSES THE PRIME MINISTERDESIGNATE SAID HE DIDN'T PLAN TO SELL ANY OF HIS TV NETWORKS DESPITE OPPOSITION CRITICISM HAITIAN MILITARY CHIEFS SHOULD QUIT OR LEAVE THE COUNTRY BEFORE THEY FACE A HARSH EMBARGO THE US AMBASSADOR TO THE UN DEMANDED ALBRIGHT SAID SHE HOPES THE SECURITY COUNCIL WILL ADOPT A USDRAFTED SANCTIONS RESOLUTION NEXT WEEK IN A US SHIFT THE DRAFT NO LONGER TIES SANCTIONS TO COMPROMISES BY OUSTED LEADER ARISTIDE NAVY SECRETARY DALTON HAS DECIDED TO EXPEL 24 MIDSHIPMEN FROM THE US NAVAL ACADEMY IN CONNECTION WITH A 1992 CHEATING SCANDAL SERVICE OFFICIALS SAID BUT THOSE EXPELLED WON'T BE REQUIRED TO REPAY THE COSTS OF THEIR GOVERNMENTFUNDED EDUCATION SCIENTISTS HAVE IDENTIFIED A BIOLOGICAL CLOCK GENE IN LABORATORY MICE THAT GOVERNS THE DAILY CYCLE OF WAKING AND SLEEPING RESEARCHERS AT NORTHWESTERN UNIVERSITY SAID THEIR REPORT ON THE GENE APPEARS IN TODAY'S ISSUE OF THE JOURNAL SCIENCE MANY SOLDIERS WERE WOUNDED OR KILLED IN YEMEN AS NORTHERN AND SOUTHERN TROOPS CLASHED AT A JOINT MILITARY CAMP NEAR THE CAPITAL SANA ACCORDING TO OFFICIALS THE COUNTRY'S DEPUTY PREMIER SURVIVED AN ASSASSINATION ATTEMPT IN SANA BUT THREE OF HIS AIDES WERE KILLED THE INTERIOR MINISTRY SAID FIVE SUSPECTED GUNMEN WERE ARRESTED 9404290013 940429 FEDERATED'S PLAN FOR MACY'S MAY IRK SOME CREDITORS BY PATRICK M REILLY AND LAURA JERESKI STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK FEDERATED DEPARTMENT STORES INC IS EXPECTED TO IRK SOME RH MACY & CO CREDITORS WHEN IT FILES AN OUTLINE OF A MACY BANKRUPTCYCOURT REORGANIZATION PLAN TODAY THE PLAN'S EXPECTED TERMS INCREASE THE LIKELIHOOD THAT MACY'S BONDHOLDERS WILL RECOVER LITTLE BECAUSE FEDERATED IS EXPECTED TO PROPOSE DISTRIBUTING NO MORE THAN 100 MILLION TO BONDHOLDERS WHO ARE OWED 13 BILLION ACCORDING TO PEOPLE FAMILIAR WITH THE PLAN FEDERATED CONTROLS A 4493 MILLION STAKE OF MACY DEBT AND WANTS TO MERGE WITH THE RETAILER MACY'S TOTAL DEBT OUTSTANDING TOTALS 6 BILLION FEDERATED WILL SUBMIT ITS PLAN TO CYRUS VANCE THE COURTAPPOINTED MEDIATOR IN THE MACY'S PROCEEDINGS ACCORDING TO WHAT CREDITORS HAVE BEEN TOLD IN BRIEF DISCUSSIONS THE CINCINNATIBASED RETAILER IS EXPECTED TO PLACE A VALUE OF 335 BILLION ON MACY WHICH HAS BEEN OPERATING UNDER CREDITOR PROTECTION OF CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE SINCE JANUARY 1992 FEDERATED EXECUTIVES HAVE BEEN RELUCTANT TO DISCUSS DETAILS OF THEIR PLAN EVEN TO LARGE CREDITORS SUCH AS MUTUALFUND GIANT FIDELITY INVESTMENTS ALSO A MACY CREDITOR YESTERDAY FEDERATED WOULDN'T COMMENT ON THE DETAILS OF THE PLAN HOWEVER IT IS LIKELY A FEDERATED PLAN WOULD CONSIDER DISTRIBUTING AS MUCH AS 16 BILLION OF DEBT WHILE SOME DETAILS OF THE PLAN ARE UNCLEAR SECURED CREDITORS WOULD RECEIVE FEDERATED SECURITIES VALUED AT 31 BILLION UNSECURED BONDHOLDERS WOULD RECEIVE BETWEEN 50 MILLION AND 100 MILLION MOST OF IT FOR HOLDERS OF THE BONDS DUE IN 1998 TRADE CREDITORS WOULD RECEIVE 40 MILLION OR ABOUT EIGHT CENTS ON THE DOLLAR EARLIER THIS WEEK THE OFFICIAL UNSECURED BONDHOLDER'S COMMITTEE OF MACY SAID IT BELIEVES MACY'S REORGANIZATION VALUE IS MORE THAN 4 BILLION AND WOULD VIGOROUSLY OPPOSE ANY PLAN THAT ATTEMPTS TO PLACE A LOW VALUE ON THE COMPANY MACY'S MANAGEMENT HAS PROPOSED A PLAN TO GIVE CREDITORS 36 BILLION IN SECURITIES WITH AN ADDITIONAL 500 MILLION IF THE RETAILER ROSE IN VALUE BUT MACY IS EXPECTED TO SUBMIT A REVISION OF THAT PLAN TO MR VANCE TODAY 9404290012 940429 MARKETING & MEDIA LOSS AT INFORMATION RESOURCES REPORTED FOR FIRST QUARTER BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO INFORMATION RESOURCES INC REPORTED AN UNEXPECTED FIRSTQUARTER LOSS AS IT ADOPTED MORE CONSERVATIVE REVENUERECOGNITION POLICIES AND TOOK A CHARGE FOR PENDING SHAREHOLDER LITIGATION THE MARKETINGINFORMATION AND SOFTWARESERVICES COMPANY POSTED A LOSS OF 78 MILLION OR 31 CENTS A SHARE COMPARED WITH NET INCOME OF 58 MILLION OR 22 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 16 TO 877 MILLION FROM 756 MILLION EARLIER THIS MONTH THE COMPANY CITING INTENSE COMPETITION FROM DUN & BRADSTREET CORP'S NIELSEN MARKETING RESEARCH UNIT AND OTHER FACTORS HAD ESTIMATED PERSHARE EARNINGS OF 10 CENTS IRI CLOSED YESTERDAY AT 14 UP 125 CENTS IN NASDAQ STOCK MARKET TRADING THE LOSS INCLUDED A CHARGE OF 66 MILLION OR 26 CENTS A SHARE FOR REVENUE THAT UNDER NEW ACCOUNTING POLICIES WILL BE SPREAD OUT RATHER THAN BOOKED IMMEDIATELY AFTER SIGNING NEW INFOSCAN CLIENTS SOME ON WALL STREET HAD CONTENDED THAT IRI HAD BEEN TOO AGGRESSIVE IN THAT REGARD THE CHARGE REFLECTS PRIORYEAR AND CURRENTYEAR REVENUE CHANGES ABOUT 10 CENTS A SHARE OF THE CHARGE INVOLVE THIS YEAR THE MOVE SHOULD SMOOTH REVENUE AND MAKE EARNINGS MUCH MORE PREDICTABLE SAID ALEXANDER PARIS JR OF BARRINGTON RESEARCH BARRINGTON ILL HE NOW PREDICTS PERSHARE EARNINGS OF 55 CENTS FOR THE YEAR EXCLUDING EXTRAORDINARY ITEMS IN 1993 IRI HAD NET INCOME OF 241 MILLION OR 89 CENTS A SHARE THE LATEST RESULTS ALSO INCLUDE A PROVISION OF 29 MILLION OR 12 CENTS A SHARE FOR LITIGATION INCLUDING A SHAREHOLDER CLASSACTION LAWSUIT THAT RECENTLY WENT TO TRIAL AND ANOTHER LAWSUIT FILED EARLIER THIS MONTH IN US DISTRICT COURT IN CHICAGO THE COMPANY WOULDN'T COMMENT ON THE LATEST SUIT THE EARLIER CASE BROUGHT IN 1989 ALLEGES THAT IRI HADN'T MADE MATERIAL FINANCIAL DISCLOSURES THE CANCELLATION OF A PLANNED ACQUISITION OF A HONG KONG RESEARCH CONCERN ADDED ABOUT 819000 TO AFTERTAX EXPENSES AND REDUCED EARNINGS BY THREE CENTS A SHARE THE COMPANY SAID EARLIER THIS WEEK IRI ANNOUNCED PLANS TO FORM A JAPANESE JOINT VENTURE WITH MITSUI & CO EXPANDING IRI'S PRESENCE IN THAT MARKET 9404290011 940429 WORLD MARKETS US DATA DEFLATE MANY EXCHANGES IN EUROPE DESPITE MORE RATE CUTS TOKYO PRICES ARE FLAT A WALL STREET JOURNAL NEWS ROUNDUP WHEN WALL STREET HICCUPED ON NEW US ECONOMIC DATA MANY EUROPEAN BOURSES GASPED AND PUSHED PRICES DOWN BROADLY LONDON EQUITIES SLUMPED SLOUGHING OFF SOLID EARLY GAINS THAT WERE PROMPTED BY LOWER EUROPEAN INTEREST RATES FRANKFURT SHARES BRUSHED THEIR ALLTIME HIGH BUT LOST MOMENTUM AND WEAKENED TOKYO STOCKS ENDED LITTLE CHANGED THURSDAY IN LIGHT DEALINGS ON THE EVE OF A JAPANESE HOLIDAY PERIOD SHUTTING THE MARKET FRIDAY AND FROM TUESDAY THROUGH THURSDAY NEXT WEEK WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11474 UP 019 REFLECTING HIGHER ASIA/PACIFIC AND EUROPEAN MARKETS AND LOWER AMERICAN MARKETS ADVANCED TECHNOLOGY/MEDICAL DEVICES STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 6535 UP 137 OR 21 WITH ALZA OF THE US POSTING AN 88 GAIN IN ITS LOCAL CURRENCY BIOTECHNOLOGY STOCKS TRAILED AT 6963 DOWN 096 OR 14 WITH BIOCHEM PHARMA OF CANADA SLIDING 5 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX LOST 201 POINTS TO 31299 NEAR THE DAY'S LOW OF 31292 AND DOWN SHARPLY FROM THE SESSION PEAK OF 31673 UP 173 POINTS THE FT 30STOCK INDEX FELL 56 POINTS TO 25042 VOLUME WAS 756 MILLION SHARES COMPARED WITH 7536 MILLION SHARES A DAY EARLIER THE MARKET OPENED HIGHER IN A SPILLOVER FROM THE PREVIOUS DAY'S STRENGTH AND AS HOPES FOR FURTHER EUROPEAN INTERESTRATE CUTS MATERIALIZED FRANCE AND THE NETHERLANDS EACH LOWERED THEIR MONEYMARKET INTERVENTION RATES FOLLOWING A SIMILAR MOVE WEDNESDAY BY GERMANY BUT LONDON STOCKS FELL AS WALL STREET THUDDED EARLY ON DATA ABOUT US GROSS DOMESTIC PRODUCT AND DURABLE GOODS THOUGH BOTH SETS OF FIGURES WERE BELOW MARKET EXPECTATIONS THUS A SEEMING COOLANT FOR INFLATION FEARS FURTHER ANALYSIS INDICATED THAT US GROWTH REMAINED RELATIVELY STRONG AUGURING FOR HIGHER INTEREST RATES IN FRANKFURT AFTER POSTING A 26 GAIN IN THE PREVIOUS TWO SESSIONS THE DAX 30STOCK INDEX SLIPPED 235 POINTS TO 225122 AFTER RISING AS HIGH AS 226760 ONLY FRACTIONALLY OFF THE RECORD HIGH OF 226798 SET JAN 3 PRELIMINARY APRIL INFLATION FIGURES FOR GERMANY WERE SLIGHTLY HIGHER THAN EXPECTED PUTTING PRESSURE ON GOVERNMENTBOND AND DAX FUTURES WHICH IN TURN PUSHED THE STOCK MARKET DOWN IN PARIS PRICES FINISHED LITTLE CHANGED TO SLIGHTLY HIGHER AS ANOTHER TUMBLE IN THE US BOND MARKET WIPED OUT FRENCH STOCKS' EARLY GAINS FOLLOWING THE RATE CUT BY THE BANK OF FRANCE IN AMSTERDAM SHARES FELL GIVING UP GAINS IN REACTION TO EARLY LOSSES ON WALL STREET FROM THE US ECONOMIC REPORTS IN MILAN EQUITIES ROSE DESPITE SEVERAL BOUTS OF PROFITTAKING AS INVESTORS AWAITED THE FORMATION OF A NEW ITALIAN GOVERNMENT IN MADRID THE MARKET OPENED HIGHER BUT ENDED WITH LOSSES FOLLOWING HIGHER RATES IN THE SPANISH TREASURY'S LONGBOND AUCTION LATE FUTURESRELATED SELLING AND WALL STREET'S NEGATIVE RESPONSE TO THE LATEST US ECONOMIC NUMBERS IN STOCKHOLM STOCKS FELL LED DOWN BY THE PHARMACEUTICAL SECTOR AND DISAPPOINTMENT ABOUT THE US ECONOMIC STATISTICS WASHED AWAY THE POSITIVE INFLUENCE OF DECLINING SWEDISH BOND YIELDS IN ZURICH THE MARKET DROPPED ON PROFITTAKING FOLLOWING RELEASE OF THE US DATA KILLING A MORNING RALLY ON A BULLISH SWISS BOND MARKET IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 10022 POINTS WEDNESDAY EASED 390 TO 1972525 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 210 MILLION SHARES DOWN FROM 2191 MILLION SHARES A DAY EARLIER WHILE THE MAIN INDEX SLIPPED ADVANCING ISSUES OUTNUMBERED RETREATING ISSUES 507440 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH GAINED 359 POINTS WEDNESDAY EDGED UP 182 TO 160333 AHEAD OF JAPAN'S GOLDEN WEEK HOLIDAYS PRIME MINISTER TSUTOMU HATA'S DECISION THURSDAY TO LEAVE THE FINANCE MINISTER IN PLACE AND HIS OTHER CABINET APPOINTMENTS WERE VIEWED AS A WASH FOR INVESTORS SENTIMENT WAS STILL HURT BY THE POTENTIALLY INEFFECTUAL NEW MINORITY GOVERNMENT THE JAPANESE YEN'S STRENGTH IN FOREIGNEXCHANGE MARKETS AND A COMING BARRAGE OF JAPANESE CORPORATE EARNINGS REPORTS AMID THE DEARTH OF ACTIVITY ON THE BOURSE MOST BUYING WAS ATTRIBUTED TO EIGHT NEW INVESTMENT TRUST FUNDS BELIEVED TO HAVE TOTAL BUYING POWER OF 100 BILLION YEN 9775 MILLION IN SYDNEY SHARES ROSE AMID GENERALLY POSITIVE SENTIMENT THOUGH INVESTORS WERE RELUCTANT TO TAKE POSITIONS AHEAD OF THE US ECONOMIC REPORTS IN HONG KONG STOCKS ENDED HIGHER FOLLOWING A MOSTLY DIRECTIONLESS SESSION AS THE EXPIRATION OF FUTURES CONTRACTS TUGGED THE UNDERLYING STOCK INDEX BOTH HIGHER AND LOWER LOCAL INVESTORS LED THE BUYING PARTICULARLY AT SESSION LOWS IN SINGAPORE TRADING WAS SLUGGISH BUT EQUITIES FINISHED HIGHER AFTER A LATE RALLY WAS IGNITED BY BETTERTHANEXPECTED MARCH TRADE FIGURES CAUSING SOME ECONOMISTS TO INCREASE THEIR ESTIMATES OF FIRSTQUARTER GROSS DOMESTIC PRODUCT PROPERTY STOCKS SURGED ON RUMORS THAT THE GOVERNMENT WOULD CHANGE ITS LAND POLICY POSSIBLY HOLDING A LEASEHOLD SALE WITH SOME PROPERTY SET ASIDE FOR HOUSING FOR FOREIGN WORKERS IN KUALA LUMPUR THE MAIN INDEX EDGED UP BUT THE BROADER MARKET FELL IN LIGHT DEALINGS AFTER AN INTRADAY ADVANCE WAS SQUELCHED BY PROFITTAKING IN SEOUL THE MAIN INDEX RALLIED 13 PARTLY ON CONTINUED EXPECTATIONS FOR EASED FOREIGN STOCK OWNERSHIP INSTITUTIONAL INVESTORS RETURNED AS BUYERS IN TAIPEI SHARES ENDED HIGHER AFTER RETREATING FROM SHARP EARLY GAINS SCORED PARTLY FROM AN INSURANCE PRIVATIZATION PLAN THAT BOOSTED FINANCIAL SHARES IN MANILA STOCKS ROSE IN ACTIVE TRADING AS BUYERS SWOOPED IN ON BLUE CHIPS AFTER THE PREVIOUS SESSION'S CORRECTION DEALINGS WERE DOMINATED BY SMALL OIL ISSUES IN BANGKOK PRICES SLIPPED ON SPECULATION ABOUT A DISSOLUTION OF PARLIAMENT TO PREVENT A COUP AND A DEPRESSION AS WELL AS A REACTION TO SOME THAI BANKS' PRIMERATE INCREASE TO 105 FROM 1025 EARLIER THIS WEEK IN MEXICO CITY STOCKS LOST GROUND TO PROFITTAKING FOLLOWING THE MARKET'S RECENT REBOUND AMID A FLURRY OF POOR FIRSTQUARTER CORPORATE EARNINGS REPORTS MANY COMPANIES' RESULTS WERE HURT BY FOREIGNEXCHANGE LOSSES BECAUSE OF THE MEXICAN CURRENCY'S DECLINE AGAINST THE DOLLAR DURING THE QUARTER A HANDFUL OF COMPANIES TURNED IN POSITIVE EARNINGS AMONG CORPORATE DEVELOPMENTS IN FRANKFURT BASF ROSE 320 MARKS TO 33790 MARKS 20240 THE CHEMICAL GROUP'S FIRSTQUARTER PRETAX PROFIT SURGED 47 TO 349 MILLION MARKS 2091 MILLION FROM A YEAR EARLIER ON STRONG GROWTH IN OVERSEAS MARKETS 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 9404290010 940429 FED REVERSES RULING CLEARS SHAWMUT FOR NEW HAMPSHIRE BANK ACQUISITION BY KENNETH H BACON AND SUZANNE ALEXANDER RYAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL RESERVE BOARD REVERSING AN EARLIER ACTION CLEARED SHAWMUT NATIONAL CORP'S APPLICATION TO ACQUIRE NEW DARTMOUTH BANK AFTER FINDING SIGNIFICANT IMPROVEMENT IN SHAWMUT'S FAIRLENDING RECORD THE FED SHOCKED THE INDUSTRY LAST NOVEMBER WHEN IT TURNED DOWN THE BIG BANKHOLDING COMPANY'S APPLICATION TO ACQUIRE DARTMOUTH NEW HAMPSHIRE'S SECONDLARGEST BANK BANKERS SAW THAT REJECTION AS A SIGNAL THAT THE FED PLANNED TO HOLD BANKS TO A HIGHER STANDARD OF COMPLIANCE TO FAIRLENDING LAWS THAN IN THE PAST IT WAS THE FIRST TIME THAT THE FED IN BLOCKING AN ACQUISITION BY A BANKHOLDING COMPANY HAD CITED COMPLIANCE WITH THE EQUAL CREDIT OPPORTUNITY ACT WHICH BARS LENDING BIAS AND THE HOME MORTGAGE DISCLOSURE ACT WHICH REQUIRES BANKS TO FILE ACCURATE AND TIMELY REPORTS ON MORTGAGE LOANS AND REJECTIONS BY RACE THE FED OBVIOUSLY RAISED THE BAR FOR SHAWMUT AND ULTIMATELY IT WILL HAVE FOR THE REST OF THE INDUSTRY SAID WALT ZALENSKI A LAWYER WITH BRYAN CAVE A FIRM THAT SHAWMUT HIRED TO HELP IT WIN FED CLEARANCE THE SECOND TIME AROUND IN APPROVING THE APPLICATION THE FED CITED SHAWMUT'S PROGRESS IN BOOSTING LENDING TO MINORITY AND LOW AND MODERATEINCOME CUSTOMERS THE COMPANY WHICH IS BASED IN HARTFORD CONN AND BOSTON HAS CREATED A 185 MILLION POOL FOR LOANS TO LOW AND MODERATEINCOME MORTGAGE APPLICANTS OPENED A BRANCH IN THE PREDOMINANTLY BLACK BOSTON NEIGHBORHOOD OF ROXBURY AND LAUNCHED NEW BASIC BANKING SERVICES FOR LOWINCOME CUSTOMERS THE FED ALSO NOTED THAT LAST DECEMBER SHAWMUT SETTLED LENDINGDISCRIMINATION CHARGES BY THE JUSTICE DEPARTMENT AND THE FEDERAL TRADE COMMISSION ONE OF THE REASONS THE FEDON A 33 VOTE LAST YEARDECLINED TO CLEAR THE SHAWMUT ACQUISITION WAS THE JUSTICE DEPARTMENT INVESTIGATION WHICH WAS SPURRED BY A FED REFERRAL IN THE FIRST PLACE THE DECISION CLEARS THE WAY FOR SHAWMUT TO CONTINUE ITS PLANS FOR REGIONAL EXPANSION THE BANKHOLDING COMPANY HAS FIVE ACQUISITIONS PENDING IN ADDITION TO NEW DARTMOUTH AND HAS INDICATED THAT REGULATORY CLEARANCE OF THEM WAS ON HOLD UNTIL AFTER THIS MOVE THE ACQUISITIONS WOULD ADD 4 BILLION TO SHAWMUT'S ASSETS OF 2739 BILLION FIRST DARTMOUTH HAS ASSETS OF 15 BILLION THE FED SAID GERARD CASSIDY AN ANALYST AT HANCOCK INSTITUTIONAL EQUITY SERVICES SAID THINGS ARE FULLSPEED AHEAD FOR SHAWMUT AND OTHER BANKS THAT HAVE ENCOUNTERED LENDINGBIAS PROBLEMS THE FED'S DECISION SHOWS THAT ACTIONS CAN BE TAKEN TO SATISFY THE REGULATORS SINCE THE FED HAS SHAWMUT'S DATA SHAWMUT'S OTHER ACQUISITIONS MAY BE EXPEDITED THE FED CLEARED THE SECOND APPLICATION ON A UNANIMOUS VOTE WITH JOHN LAWARE A FORMER SHAWMUT CHAIRMAN ABSTAINING 9404290009 940429 WHO'S NEWS PITTENCRIEFF COMMUNICATIONS INC PITTENCRIEFF COMMUNICATIONS INC ABILENE TEXAS ROBERT J WOLSEY RESIGNED AS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF THIS MOBILE COMMUNICATIONS COMPANY MR WOLSEY 44 YEARS OLD SAID IN A STATEMENT HE WAS LEAVING TO FOCUS ON OTHER BUSINESS INTERESTS AND TO SPEND TIME WITH HIS FAMILY HE WILL BE SUCCEEDED AS PRESIDENT AND CHIEF EXECUTIVE BY WARREN D HARKINS 42 MR HARKINS FORMERLY SERVED AS VICE PRESIDENT OF CORPORATE DEVELOPMENT FOR PITTENCRIEFF THE COMPANY SAID TERENCE A HENEAGHAN 45 A PITTENCRIEFF DIRECTOR AND CHIEF EXECUTIVE OF ITS PARENT PITTENCRIEFF PLC WAS ELECTED CHAIRMAN 9404290008 940429 INTERNATIONAL JAPAN'S NEW GOVERNMENT FINDS SUPPORT FADING BY MICHAEL WILLIAMS AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO TSUTOMU HATA CAN'T GET ANY RESPECT AND AS A RESULT HIS CHANCES OF GETTING MUCH DONE ARE GETTING SLIMMER JAPAN'S NEW PRIME MINISTER SUCCEEDED YESTERDAY IN ASSEMBLING A 21MEMBER CABINET BUT HE HEADS A FEEBLE MINORITY GOVERNMENT THAT IS ALREADY LOSING THE SUPPORT OF THE PUBLIC AND THE PRESS THIS IS ONE OF THE WEAKEST GOVERNMENTS IN POSTWAR HISTORY SAID POLITICAL ANALYST TAKAYOSHI MIYAGAWA VOICING A WIDELY HELD VIEW IT'S LIKE A PREMATURE BABY THE LIFESUSTAINING EQUIPMENT IS IN THE HANDS OF THE OPPOSITION AND THEY CAN PULL THE PLUG AT ANY TIME MR HATA SHUFFLED 14 POSTS MORE THAN HALF THE CABINET INCLUDING SEVERAL SENSITIVE PORTFOLIOS THE BIGGERTHANEXPECTED MAKEOVER REFLECTS THE NEW COMPOSITION OF HIS COALITION GOVERNMENT WHICH HAS BEEN DRASTICALLY WEAKENED SINCE THE SOCIALISTS BOLTED THIS WEEK AMONG THOSE IN NEW JOBS ARE FOREIGN MINISTER KOJI KAKIZAWA A RECENT DEFECTOR TO THE COALITION FROM THE OPPOSITION AND CHIEF CABINET SECRETARY HIROSHI KUMAGAI THE PREVIOUS MINISTER OF INTERNATIONAL TRADE AND INDUSTRY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MITI SLOT IS ASSUMED BY EIJIRO HATA THE PREVIOUS AGRICULTURE MINISTER FINANCE MINISTER HIROHISA FUJII RETAINS HIS PORTFOLIO REFLECTING MR HATA'S DESIRE TO PUSH THROUGH A BUDGET AS SOON AS POSSIBLE MR HATA LAID OUT HIS POLICY PLATFORM YESTERDAY DECLARING THAT HE WILL STRIVE TO REDUCE JAPAN'S TRADE SURPLUS AND PUSH THROUGH A THORNY TAXREFORM BILL BUT HE MAY NOT GET A CHANCE TO DELIVER THE COALITION'S POLL RATINGS ARE SLIPPING AND EVEN MR HATA ADMITTED THAT A LOT OF DIFFICULTIES LIE AHEAD MOST OBSERVERS PREDICT THAT AFTER HE PASSES A BUDGET PROBABLY BY JUNE MR HATA WILL HAVE TO DISSOLVE PARLIAMENT AND CALL ELECTIONS HIS TENUOUS GRIP ON POWER MAKES IT DIFFICULT FOR JAPAN TO DRAFT A TAXCUT BILL BY JULY AS IT HAS PROMISED THE US AND RAISES THE POSSIBILITY THAT POLITICAL AND ECONOMIC REFORMS CHAMPIONED BY MR HATA MAY BE DERAILED THE GOVERNMENT HAS BEEN HURT BY THE DEFECTION OF THE SOCIALISTS WHO LEFT AFTER OTHER ALLIANCE PARTIES BANDED TOGETHER IN A VOTING BLOC MEANT TO NEUTRALIZE THE LEFTISTS THE SOCIALISTS' DEPARTURE MAKES THE COALITION WITH 189 SEATS IN THE 511SEAT PARLIAMENT JAPAN'S FIRST MINORITY GOVERNMENT SINCE 1955 THUS THE REFORM MOVEMENT THAT MR HATA HELPED LAUNCH LAST YEAR SHOWS SIGNS OF LOSING MOMENTUM THE SOCIALISTS ARE FLIRTING WITH THE REFORMISTS' ARCHENEMIES THE LIBERAL DEMOCRATS WHO WERE OUSTED FROM POWER LAST YEAR CONSIDERED POLITICAL DINOSAURS A FEW WEEKS AGO THEY NOW TALK HOPEFULLY OF MAKING A COMEBACK THAT'S QUITE A TURNAROUND LAST SUMMER JAPAN'S PRESS LIONIZED PEOPLE LIKE MR HATA AND THE PREVIOUS PRIME MINISTER MORIHIRO HOSOKAWA THEY WERE PAINTED AS FRESH PLAINSPEAKING AND UNTAINTED BY SCANDAL AND WERE PRAISED FOR PUSHING FOR CONSUMER EMPOWERMENT AND CURBING THE MIGHT OF JAPAN'S BUREAUCRATS NOW MR HOSOKAWA HAS HAD TO RESIGN OVER OLD FINANCIAL SHENANIGANS AND MR HATA IS BEING CAST AS A PUPPET OF BACKSTAGE POLITICAL OPERATIVES AT THE CABINET'S INAUGURAL PRESS CONFERENCE YESTERDAY REPORTERS ASKED MINISTERS WHAT THEY THOUGHT OF PREDICTIONS THAT THE GOVERNMENT WILL SOON FALL DRAWING LAUGHS FROM THE PRESS GALLERY WHEN ONE MINISTER BEGAN READING PREPARED REMARKS A REPORTER CHIMED IN YOU'RE JUST READING NOTES PREPARED BY THE BUREAUCRATS THE COALITION'S BIGGEST LIABILITY RIGHT NOW IS ALSO ITS GREATEST STRENGTH ICHIRO OZAWA ITS LEADING STRATEGIST AND THE REPUTED TACTICAL POLITICAL BRAINS BEHIND MR HATA THE ARCHITECT OF THE COALITION'S REFORM AGENDA MR OZAWA NOW FINDS HIMSELF UNDER FIERCE IDEOLOGICAL AND PERSONAL ATTACK CONSIDERED AN ACE FIXER HE ALSO HAS A COHERENT AND ORIGINAL IDEOLOGY A RARE TRAIT IN A JAPANESE POLITICIAN HE PROPOSES MAKING JAPAN A NORMAL NATION THAT PLAYS A BIGGER ROLE IN WORLD AFFAIRS AND SENDS TROOPS ABROAD ON PEACEKEEPING MISSIONS HIS COMBINATION OF HARDBALL POLITICKING AND BOLD PLANS MAKE HIM A LIGHTNING ROD OF CRITICISM THE SOCIALISTS AND THE LDP ARE USING MR OZAWA AS THEIR EXCUSE FOR OPPOSING THE COALITION HE IS ALSO UNDER ATTACK BY MUCH OF THE PRESS THE BAD PUBLICITY IS TAKING ITS TOLL IN A NEW POLL BY THE DAILY MAINICHI SHIMBUN 43 OF RESPONDENTS SUPPORTED MR HATA'S GOVERNMENT AND 23 SAID THEY DIDN'T THAT COMPARES WITH 75 SUPPORT AND 9 OPPOSITION WHEN MR HOSOKAWA TOOK OFFICE MEANWHILE THE LDP'S BACKING HAS INCREASED TO 28 FROM 15