THE SHOW MUST GO ON SOMETIMES IT JUST NEEDS A LITTLE HELP IN THE CASE OF THE BEST LITTLE WHOREHOUSE GOES PUBLIC A BROADWAY MUSICAL SCHEDULED TO OPEN MAY 10 THE PRODUCERS HOPED TO GET AN ASSIST FROM THE INCREASINGLY POPULAR ADVERTISING FORMAT OF THE INFOMERCIAL BUT BROADWAY'S MAIDEN ATTEMPT AT INFOMERCIALS HAD A VERY SHORT RUN THE 30MINUTE PROGRAM WAS SHOWN ON NEW YORK TELEVISION STATIONS WWOR WHICH IS SEEN ON CABLE ACROSS THE COUNTRY WNBC WYNY AND WPIX BUT WAS PULLED OFF THE AIR AFTER ONLY THREE WEEKS AND 14 PERFORMANCES IT IS HOPED THE ACTUAL SHOW WILL LAST LONGER THE INFOMERCIAL LAID AN EGG WHEN IT WAS BROADCAST DURING OVERNIGHT HOURS BEGINNING AT 1 AM THE TOLLFREE NUMBER TO ORDER TICKETS RECEIVED FEWER THAN A DOZEN CALLS EACH TIME THE PROGRAM RAN ACCORDING TO STEVIE PHILLIPS PRODUCER OF THE MUSICAL THAT HAS TOMMY TUNE AS CODIRECTOR AND COCHOREOGRAPHER HOWEVER IT PRODUCED A MORE FAVORABLE REACTION WHEN IT RAN ON WEEKEND MORNINGS AND AFTERNOONS WE SOLD THOUSANDS OF TICKETS SHE SAYS DECLINING TO BE SPECIFIC THE SHOW'S PRODUCERS MCA INC'S UNIVERSAL UNIT SUGGESTED THE ELONGATED COMMERCIAL IN ORDER TO CREATE AWARENESS OF AN ENTIRELY NEW MUSICAL IN A BROADWAY SEASON REPLETE WITH SUCH REVIVALS AS DAMN YANKEES AND CAROUSEL WITH THEATER TICKETS RUNNING AS HIGH AS 65 TO 70 AND PRODUCTIONS COSTS ESCALATING BRAND NEW MUSICALS ARE INCREASINGLY RARE WE HAD TO GET OUR NAME OUT THERE TO A THEATERGOING PUBLIC THAT IS BEING WOOED BY MORE FAMILIAR TITLES SAYS MS PHILLIPS THE INFOMERCIAL FEATURED INTERVIEWS WITH THE SHOW'S CREATIVE COLLABORATORS AND ITS CHORUS DANCERS BUT OTHERS ALONG THE GREAT WHITE WAY AREN'T SURPRISED THE INFOMERCIAL UNDERPERFORMED THEY QUESTION WHETHER THE COUCH POTATO WHO IS WATCHING TELEVISION AT ODD HOURS IS THE TYPICAL THEATERGOER USING AN INFOMERCIAL TO SELL TICKETS ISN'T A SOUND CONCEPT SAYS NANCY COYNE CHIEF EXECUTIVE OFFICER OF SERINO COYNE A NEW YORK AGENCY THAT SPECIALIZES IN THEATER AND ARTS COMMERCIALS AND PUBLIC RELATIONS WITH INFOMERCIALS YOU'RE USUALLY SELLING A PRODUCT NOT AN EXPERIENCE AND YOU'RE ALSO SELLING A COST ADVANTAGE AS A WAY OF DEVELOPING AN AUDIENCE IT IS OFF TARGET EVEN WITH FANCY PRODUCTS THE INFOMERCIAL AUDIENCE HAS A BARGAIN HUNTER MENTALITY THE COST OF PRODUCING AND PLACING AN INFOMERCIAL IS ALSO PROHIBITIVE SAYS MS COYNE PAYING THE ENTIRE CAST IS TOO EXPENSIVE SO YOU DON'T SEE AN ACCURATE REPRESENTATION OF THE SHOW MS PHILLIPS AGREES WITH THAT ASSESSMENT BUT DEFENDS THE DECISION TO GO AHEAD WITH THE INFOMERCIAL ANYWAY WE DID THE BEST WE COULD SHE SAYS WE HAD COSTUMER DESIGNER BOB MACKIE CREATE SOME QUICKIE COSTUMES AND WE TAPED IT IN A RECORDING STUDIO SINCE WE WEREN'T YET IN OUR THEATER THERE ARE NO SHOWSTOPPING NUMBERS IN THE INFOMERCIAL ALTHOUGH THERE ARE APPEARANCES BY MR TUNE COLIBRETTIST LARRY L KING AND THE STARS DEE HOTY AND SCOTT HOLMES THE PRODUCTION WAS EXPENSIVE APPROXIMATELY 225000 OR ONEFOURTH OF THE SHOW'S ENTIRE AD BUDGET IT COST ANOTHER 225000 TO BUY TIME FOR THE INFOMERCIAL TO RUN ALTHOUGH IT COST ONLY 5000 TO RUN THE PROGRAM LATE AT NIGHT IT COST 18000 TO 40000 IN THE MORNING AND AFTERNOON ON WEEKENDS LIKE SO MANY VENTURES IN THE THEATER THIS ONE LOST MONEY WE WERE CLOSE TO BREAKING EVEN SAYS MS PHILLIPS THE BEST LITTLE WHOREHOUSE GOES PUBLIC MAY NOT BE THE BEST TEST OF THE INFOMERCIAL'S CHANCES ON BROADWAY THE SEQUEL TO THE HIT THE BEST LITTLE WHOREHOUSE IN TEXAS WHICH RAN FOR FOURANDAHALF YEARS BEGINNING IN 1978 ISN'T PERFORMING WELL IN PREVIEWS EVEN MS PHILLIPS SAYS IT IS MARGINALLY SELLING LAST WEEK ACCORDING TO THE TRADE PUBLICATION VARIETY THE MUSICAL GROSSED A MERE 55000 ONE OF THE LOWESTGROSSING SHOWS ON BROADWAY IF IT HAD SOLD OUT AT FULLVALUE TICKET PRICES IT WOULD HAVE GROSSED 316000 FURTHER CONCEDES MS PHILLIPS THERE HASN'T BEEN A SUCCESSFUL SEQUEL ON BROADWAY CONSIDER ANNIE WARBUCKS THE DISASTROUS FOLLOWUP TO ANNIE YET IN THE BEST BROADWAY TRADITION MS PHILLIPS REMAINS REMARKABLY UPBEAT SHE IS COUNTING ON GOOD REVIEWS TO CARRY THE SHOW THEN SHE WILL ADD SCENES FROM THE MUSICAL TO THE INFOMERCIAL AND USE IT IN CITIES ACROSS THE COUNTRY ONCE THE SHOW HITS THE ROAD THIS IS THE BEST MARKETING TOOL WE'LL HAVE SAYS MS PHILLIPS THE PUBLIC WILL SEE THE SHOW IS FUN AND NOT RISQUE MS PHILLIPS DOESN'T WANT TO STOP AT INFOMERCIAL SHE SAYS SHE HAS AN IDEA THAT WOULD BE PERFECT FOR QVC A HOMESHOPPING NETWORK BUT DECLINES TO ELABORATE AT LEAST ONE THEATER REVIEWER DOESN'T THINK THE INFOMERCIAL CONCEPT FOR THE THEATER IS SO FLAWED AFTER ALL SOME TELEVISION STATIONS SUCH AS WWOR AND WNYW IN NEW YORK ROUTINELY HAVE HALFHOUR SHOWS THAT AMOUNT TO ADVERTISEMENTS PEGGED TO A SHOW'S OPENING NIGHT SUCH AS THIS MONTH'S BEAUTY AND THE BEAST AT LEAST THE INFOMERCIAL IS LABELED AS AN ADVERTISEMENT SAYS LINDA WINER THEATER CRITIC FOR NEWSDAY/NEW YORK NEWSDAY IT'S HARD TO CRASH THROUGH THE MASS CONSCIOUSNESS BUT THIS COULD SELL TICKETS IT RAISES THE VISIBILITY OF A SHOW AT&T CORP ONE OF THE LARGEST DIRECT MARKETERS TO CONSUMERS CONSOLIDATED MOST OF ITS ESTIMATED 200 MILLION TO 300 MILLION DIRECTMARKETING ACCOUNT WITH TWO AGENCIES YOUNG & RUBICAM'S WUNDERMAN CATO JOHNSON NEW YORK AND BRONNER SLOSBERG HUMPHREY BOSTON THE ACCOUNT COVERING DIRECTRESPONSE AND DIRECTMAIL ADVERTISING TO CONSUMERS WAS PREVIOUSLY DIVIDED AMONG 12 AGENCIES INCLUDING BRONNER SLOSBERG SAATCHI & SAATCHI CO'S SAATCHI & SAATCHI DIRECT WPP GROUP'S OGILVY & MATHER DIRECT AND FOOTE CONE & BELDING'S FCB DIRECT AS A RESULT OF THE CONSOLIDATION OGILVY AND FCB RETAIN SMALLER ASSIGNMENTS SAATCHI & SAATCHI DIRECT ISN'T PEGGED FOR ANYTHING RIGHT NOW AN AT&T SPOKESMAN SAID WORLDWIDE 1 ON 1 A JOINT VENTURE OF AYER AND ROSS ROY COMMUNICATIONS ALSO WON AN UNSPECIFIED ASSIGNMENT THE RESHUFFLING SENDS A MAJOR CHUNK OF BILLINGS BACK TO YOUNG & RUBICAM AND A SMALLER CHUNK TO AYER BOTH OF WHICH HAD LOST BILLINGS AS A RESULT OF AT&T'S MEDIAADVERTISING REVIEW LAST FALL ACCOUNTS AAMCO TRANSMISSIONS OF BALA CYNWYD PA HIRED ALLY & GARGANO NEW YORK FOR ITS ESTIMATED 15 MILLION ACCOUNT PREVIOUSLY UNASSIGNED DATA GENERAL CORP OF WESTBORO MASS TAPPED THE PROVIDENCE RI AGENCY PAGANO SCHENCK & KAY FOR ITS ESTIMATED 10 MILLION ACCOUNT PREVIOUSLY AT LOIS USA PAGANO SCHENCK WILL MOVE ITS OFFICES TO BOSTON THIS FALL THE CLIENT SAID JB WILLIAMS CO MOVED THE ESTIMATED 7 MILLION ACCOUNT FOR THE RECENTLY ACQUIRED CEPACOL BRAND TO AVRETT FREE & GINSBERG THE ACCOUNT WAS PREVIOUSLY AT WPP GROUP'S OGILVY & MATHER AVRETT SAID SEARS SEARS ROEBUCK & CO SAID IT WILL AIR A 90SECOND NETWORK TELEVISION COMMERCIAL SUNDAY NIGHT INVITING TV WATCHERS TO COME SEE THE MANY SIDES OF SEARS THE CAMPAIGN CREATED BY YOUNG & RUBICAM IS RUNNING IN ADDITION TO THE SOFTER SIDE ADS FOR SEARS'S APPAREL THE CLIENT SAID OMNICOM OMNICOM GROUP REPORTED A FIRSTQUARTER LOSS OF 91 MILLION DUE TO AN ACCOUNTING CHANGE COMPARED WITH NET INCOME OF 145 MILLION OR 50 CENTS A SHARE IN THE YEAREARLIER QUARTER BEFORE THE EFFECT OF THE ACCOUNTING CHANGE OMNICOM SAID NET INCOME INCREASED 31 TO 189 MILLION QUARTERLY REVENUE INCREASED 11 TO 3765 MILLION FROM 3391 MILLION 9404290006 940429 DRAVO POSTS WIDER FIRSTQUARTER LOSS EXPLORES SALE SPINOFF DRAVO CORP WHICH REPORTED NET LOSSES FOR ALL OF LAST YEAR POSTED A WIDER 1994 FIRSTQUARTER LOSS AND SAID IT IS EXPLORING THE SALE OF THE COMPANY OR A SPINOFF OF BUSINESS SEGMENTS CHAIRMAN CARL A TORBERT JR SAID HE HAS ASKED LEHMAN BROTHERS DRAVO'S LONGTIME ADVISER TO ASSIST US IN OUR EVALUATION OF OTHER STRATEGIC ALTERNATIVES THESE INCLUDE JOINT VENTURE OPPORTUNITIES THE SALE OF PARTS OR ALL OF ONE OF OUR BUSINESS SEGMENTS OR THE SALE OF THE COMPANY AS A WHOLE MR TORBERT 58 YEARS OLD WAS NAMED CHAIRMAN IN APRIL FOLLOWING THE RETIREMENT OF WILLIAM G ROTH 55 AT THAT TIME DRAVO PROJECTED A WIDENING FIRSTQUARTER LOSS YESTERDAY THE PITTSBURGHBASED LIME PRODUCER REPORTED A FIRSTQUARTER LOSS OF 26 MILLION OR 22 CENTS A SHARE INCLUDING AN ACCOUNTING CHANGE CHARGE OF 136 MILLION OR NINE CENTS A SHARE THIS COMPARED WITH A LOSS OF 391000 OR TWO CENTS A SHARE IN 1993 FIRST QUARTER REVENUE FELL 7 TO 577 MILLION WHILE DRAVO EXPLORES THE OTHER STRATEGIES MR TORBERT SAID THE COMPANY WILL CONSOLIDATE ITS DRAVO BASIC MATERIALS CO AND DRAVO LIME CO INTO A SINGLE UNIT TO IMPROVE THEIR EFFICIENCY DRAVO'S COSTREDUCTION MEASURES WILL YIELD ANNUAL SAVINGS OF 15 MILLION TO 2 MILLION OR EIGHT CENTS TO 10 CENTS A SHARE MR TORBERT SAID HOWEVER THE SAVINGS ARE EXPECTED TO BE OFFSET BY PRICE CONCESSIONS DRAVO EXPECTS TO MAKE IN 1994 TO ITS CUSTOMERS WHO ARE RENEWING SEVERAL MAJOR LIME SUPPLY CONTRACTS HE ADDED IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY DRAVO SHARES ROSE 75 CENTS TO 12125 FOR 1993 DRAVO HAD A LOSS OF 177000 OR 18 CENTS A SHARE ON REVENUE OF 2776 MILLION 9404290005 940429 AIDS IS CHIEF FACTOR THAT SHORTENS LIVES IN MUCH OF THE WORLD WASHINGTON AIDS IS THE MAIN FACTOR SHORTENING LIFE EXPECTANCY IN MANY AREAS OF THE WORLD FOLLOWING DECADES OF IMPROVEMENT THE CENSUS BUREAU SAID THE REPORT WHICH STUDIED THE WORLD'S POPULATION TRENDS IN THE PAST THREE YEARS FEATURED A SECTION FOR THE FIRST TIME ON THE SPREAD OF AIDS AND HIV THE VIRUS THAT CAUSES AIDS AFRICA REMAINS THE HARDEST HIT BY THE DISEASE IN UGANDA THE AVERAGE LIFE EXPECTANCY HAS PLUMMETED TO 32 YEARS FROM 59 YEARS IN SUBSAHARAN AFRICA AIDS IS EXPECTED TO DOUBLE THE NUMBER OF DEATHS FROM WHAT WOULD OCCUR WITHOUT AIDS DURING THE PERIOD FROM 1985 TO 2010 AIDSRELATED DEATHS HAVE A SUBSTANTIAL EFFECT ON LIFE EXPECTANCY BECAUSE MOST OF THE VICTIMS ARE RELATIVELY YOUNG ADULTS BY 2010 AIDS WILL NEARLY DOUBLE THE DEATH RATE IN HAITI AND TRIPLE THE RATE IN THAILAND ACCORDING TO THE CENSUS BUREAU ALTHOUGH AIDS HAS INCREASED THE DEATH RATE IN THE US BY A MUCH SMALLER RATE 15 AND ISN'T EXPECTED TO CHANGE MUCH DURING THE COMING YEARS THE DISEASE HAS BECOME THE LEADING CAUSE OF DEATH AMONG MEN AGED 2544 YEARS THE REPORT ALSO DETAILED POPULATION PREDICTIONS FOR THE YEAR 2020 THE BUREAU EXPECTS THE WORLD'S POPULATION TO INCREASE TO 79 BILLION PEOPLE IN 2020 FROM 56 BILLION TODAY NINE OUT OF 10 WILL BE MEMBERS OF THE DEVELOPING WORLDMORE THAN ONE BILLION IN ASIA ALONE DESPITE THE INCREASED MORTALITY FROM AIDS THE BUREAU PREDICTED THAT THE POPULATION OF SUBSAHARAN AFRICA WILL INCREASE THE FASTEST TOTALING MORE THAN A BILLION IN 2020 WOMEN CONTINUE TO LIVE LONGER THAN MEN USUALLY ABOUT TWO YEARS BUT THAT DIFFERENCE JUMPS TO 10 YEARS IN RUSSIA THE REPORT SAID 9404290004 940429 SOCCER'S WORLD CUP DEBUTING IN US HEADS FOR A SELLOUT LAST OF SINGLEGAME TICKETS WILL GO ON SALE SUNDAY VIA SPECIAL 800 NUMBER BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SOME WORLD CUP SOCCERTOURNAMENT TICKETS ARE AVAILABLE BUT GETTING ONE OF THEM COULD BE ABOUT AS HARD AS MAKING ONE OF THE TEAMS THE TOURNAMENT BEGINS JUNE 17 AT CHICAGO'S SOLDIER FIELD WITH A MATCH BETWEEN BOLIVIA AND DEFENDING CHAMPION GERMANY AND ENDS JULY 17 AT THE ROSE BOWL IN THE LOS ANGELES AREA ALL TOLD 35 MILLION TICKETS WILL BE ISSUED FOR THE TOURNAMENT TO BE PLAYED IN THE US THIS YEAR FOR THE FIRST TIME AT NINE CITIES ALTHOUGH MOST OF THE TICKETS ALREADY HAVE BEEN SOLD TYPICALLY IN STRIPS COVERING SEVERAL GAMES IN A SINGLE CITY WORLD CUP PROMOTERS YESTERDAY SAID THE LAST 450000 SINGLEGAME TICKETS WILL GO ON SALE SUNDAY AT 10 AM EDT THROUGH A SPECIAL TELEPHONE NUMBER 8007691994 THE UNUSED TICKETS HAVE BEEN GATHERED FROM ALLOTMENTS PREVIOUSLY OFFERED TO NATIONAL SOCCER ASSOCIATIONS COMMERCIAL PARTNERS AND TOUR OPERATORS WE EXPECT AN OVERWHELMING DEMAND WE EXPECT TO SELL OUT EVERY GAME BEFORE THE TOURNAMENT STARTS SAID ALAN I ROTHENBERG CHAIRMAN AND CHIEF EXECUTIVE OF WORLD CUP USA 1994 THE PRIVATE NONPROFIT GROUP ORGANIZING THE TOURNAMENT KNOWN AS THE XV FIFA WORLD CUP THE GROUP IS STAGING THE EVENT FOR FEDERATION INTERNATIONALE DE FOOTBALL ASSOCIATION THE WORLD GOVERNING BODY FOR SOCCER A SPORT KNOWN AS FOOTBALL BY MOST OF THE WORLD AND WHICH IS VASTLY MORE POPULAR WORLDWIDE THAN IN THE US DESPITE THE HANDFUL OF REMAINING TICKETS FIVE OF THE 52 GAMES ARE COMPLETELY SOLD OUT AND SEVERAL LOCATIONS FEATURING MORE POPULAR EARLY MATCHES HAVE VERY FEW TICKETS LEFT HOWEVER PHONE LINES FOR THE TICKETS HAVE BEEN SWAMPED AND CALLERS OFTEN HAVEN'T BEEN ABLE TO GET THROUGH MR ROTHENBERG SAID WORLD CUP USA IS ADDING TELEPHONE OPERATORS FOR THE REMAINING SALES TICKET RESELLERS MEANWHILE HAVE BEEN MARKING UP TICKETS TO HUGE PREMIUMS FROM THE FACE VALUE WHICH RUNS AS LOW AS 25 ONE TICKET AGENCY YESTERDAY WAS QUOTING A PRICE AS HIGH AS 850 FOR A SINGLE FIRSTROUND GAME AT GIANTS STADIUM IN NEW JERSEY A SOLD OUT GAME BETWEEN IRELAND AND ITALY ON JUNE 18 SANCTIONED TOUR OPERATORS ALSO ARE CHARGING HEFTY FEES FOR TICKETS AND RELATED PACKAGES HOSPITALITY TOURS AN OFFICIAL WORLD CUP TOUR OPERATOR BASED IN HYANNIS MASS YESTERDAY OFFERED A 394 PACKAGE TO THE JUNE 18 IRELAND VS ITALY GAME THAT INCLUDED ONE OF THE 25 TICKETS HOSPITALITY DECLINED TO OUTLINE THE PACKAGE BUT SAID IT COULD INCLUDE A BUS TRIP FROM MANHATTAN TO THE EAST RUTHERFORD NJ STADIUM AND A BUNCH OF LITTLE THINGS WITH THE WORLD CUP LOGO WE SUGGEST YOU SHOP AROUND SAID A SPOKESWOMAN FOR THE WORLD CUP USA SHE ACKNOWLEDGED THAT THE TOUR OPERATORS ARE SOMEWHAT INDEPENDENT OF COURSE THE WORLD CUP ITSELF OFFERS A FEW PRICEY PACKAGES A VIP FINALS WEEK PARCEL INCLUDES SEMIFINAL THIRDPLACE AND CHAMPIONSHIPGAME TICKETS AND OTHER AMENITIES FOR 2500 A PERSON AND AN EIGHT GAME GOLD PACKAGE IN LOS ANGELES IS OFFERED FOR 4750 INCLUDING ACCESS TO US TEAM PRACTICES THE RIGHT TO PURCHASE TICKETS TO GALA DINNERS A PROGRAM AND OTHER AMENITIES SOME OF THESE PACKAGES REMAIN AVAILABLE THE SUNDAY TICKET SALE WILL ALLOW PURCHASERS TO ORDER AS MANY AS 10 TICKETS A CALL HOT TICKETS INCLUDE THOSE FOR GAMES INVOLVING ITALY OR ARGENTINA HIGHPROFILE TEAMS WITH PARTICULARLY ARDENT FANS DEMAND REMAINS LIGHT HOWEVER FOR THE US TEAM'S GAMES ALL CATEGORIES OF TICKETS ARE AVAILABLE FOR THE US'S THREE OPENINGROUND GAMES TWO OF WHICH ARE BEING PLAYED IN THE SPACIOUS ROSE BOWL WITH THE THIRD IN DETROIT'S SILVERDOME 9404290003 940429 TRASHING TRADITION SOME MAVERICK FIRMS IN JAPAN ARE CHANGING ITS BUSINESS CLIMATE A CREDIT UNION CUTS SERVICE AND RATES MANUFACTURER GETS RID OF ITS FACTORIES PROFITABILITY BEFORE QUALITY BY MICHAEL WILLIAMS AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TSU JAPAN IN THIS DRAB PROVINCIAL CITY NEAR A SHRINE SACRED IN JAPANESE CREATION LORE KENJI ASAO IS TRASHING JAPAN'S BUSINESS MYTHS IN HIS CREDIT UNION'S MAIN BRANCH THE WIRY 60YEAROLD EXECUTIVE PROUDLY POINTS TO INNOVATIONS THAT ARE CHANGING BANKING AROUND HERE JUST FOUR TELLERS DO THE ROUTINE WORK OF TSU CREDIT UNION WHICH HAS DISPENSED WITH THE ROWS OF PAPER PUSHERS COMMON TO MOST JAPANESE BANKS TSU CREDIT ALSO GOT RID OF THE FLEET OF TINY CARS AND MOTOR SCOOTERS THAT ARE TRADITIONALLY USED TO FETCH DEPOSITS AND THAT EPITOMIZE THE DOTING SERVICE MOST JAPANESE COMPANIES LAVISH ON CUSTOMERS YET TSU CREDIT'S CUSTOMERS ARE PLEASED WHY WITH ITS COSTS REDUCED TSU CREDIT OFFERS BORROWERS THE LOWEST INTEREST RATES OF ANY SUCH LENDER IN JAPAN MAVERICKS SUCH AS THIS ARE GIVING JAPANESE BUSINESS AN OVERHAUL DOING THE SAME THINGS AS YOUR COMPETITORS IS THE RISK SAYS MR ASAO FLASHING A CONFIDENT GRIN IF THEY FAIL YOU FAIL THIS IS ABOUT SURVIVAL IT IS ALSO ABOUT REBIRTH THE VAST MAJORITY OF JAPAN'S ECONOMY AND EMPLOYMENT ISN'T IN ITS FAMED AUTOMOBILES AND ELECTRONIC GOODS BUT IN UNSUNG DOMESTIC BUSINESSES SUCH AS CREDIT UNIONS AND FOOD PROCESSING AND THIS DOMESTIC SECTOR IS A TAR PIT OF WASTE AND INEFFICIENCY JAPAN'S RETAILING SECTOR FOR INSTANCE IS JUST 44 AS PRODUCTIVE AS AMERICA'S ACCORDING TO A 1992 STUDY BY MCKINSEY & CO BUT MAVERICKS SUCH AS MR ASAO ARE UNCORKING THE POTENTIAL OF THE WORLD'S SECONDLARGEST ECONOMY BY ABANDONING ITS PATERNALISTIC WAYS FOR A MORE DARWINIAN APPROACH THEY DON'T FRET ABOUT MARRYING INTO A CORPORATE FAMILY SELLING THROUGH LONG DISTRIBUTION CHAINS OR CODDLING CUSTOMERS WITH FREE SERVICES THEY ARE TURNING THE SCREWS ELIMINATING FREEBIES SQUEEZING EMPLOYEES AND TAKING DISTRIBUTION SHORTCUTS THEY THINK THAT RUTHLESSLY CHASING PROFIT IS THE ONLY WAY TO SURVIVE AN ERA OF SLOW GROWTH THEIR METHODS ARE PAYING OFF AND RUBBING OFF ON OTHER COMPANIES BY SHAPING UP THE DOMESTIC LAGGARDS THEY ARE LEADING JAPAN OUT OF ITS FUNK THEY RAISE THE PROSPECT OF A JAPAN THAT BOUNCES BACK FROM ITS CURRENT ECONOMIC DOWNTURN AS A MUCH TOUGHER GLOBAL COMPETITOR AND AS A MUCH MORE CUTTHROAT PLACE THE MAVERICKS SPANNING THE SPECTRUM FROM BANKS TO TAXI FLEETS TO ELECTRONICS COMPANIES AND GENERALLY RUN BY ENTREPRENEURS WITH BIG PERSONAL STAKES ARE LIKE TERRORISTS THE IMPACT ON CONSCIOUSNESS IS LARGE SAYS WALT SHILL A MCKINSEY PARTNER THEY'RE CHANGING THE OVERALL PRICING STRUCTURE AND THE WAY OF THINKING OF JAPANESE EXECUTIVES THE MAVERICKS AREN'T JAPAN'S FIRST BUSINESS REBELS BUT THE NEW ZEITGEIST IS AFFECTING EVEN THE PREVIOUS GENERATION OF MAVERICKS HONDA MOTOR CO A FORMER MAVERICK SLOWED BY BIGCOMPANY DISEASE SAID RECENTLY THAT IT WILL DEMOTE MANAGERS AND CUT THEIR PAY IF THEY DON'T PERFORM IN A RECENT SURVEY OF 651 MOSTLY LARGE JAPANESE AND US CORPORATIONS THE JAPANESE CHOSE PROFITABILITY AS THE CHIEF CHARACTERISTIC OF EXCELLENT COMPANIES THE MAIN CONCERNS OF YESTERYEAR QUALITY AND CUSTOMER SERVICE RANKED FAR DOWN THE LIST SUDDENLY A STODGY BUSINESS CULTURE THAT PRIZES ORDER AND STABILITY IS LIONIZING RISKTAKERS LEADING BUSINESS PUBLICATIONS AND TVNEWS SHOWS ARE PROFILING COMPANIES WITH OFFBEAT STRATEGIES JAPANESE BUSINESSMEN ARE FLOCKING TO HEAR AMERICAN CONSULTANTS LECTURE ON RESTRUCTURING BOOKSTORES ARE FILLED WITH HOWTO TOMES ON MANAGING THROUGH HARD TIMES THE COMPANIES OF TOMORROW MAY WELL RESEMBLE MK TAXI AFTER THE TAXI INDUSTRY SLUMPED IN HISTORIC KYOTO 42 FLEETS BANDED TOGETHER TO SEEK A RATE INCREASE BUT SADAO AOKI MK'S OWNER CRUISED THE GOVERNMENT DISTRICT IN A TRUCK BEARING SIGNS PUSHING REGULATORS TO LET HIM CUT FARES 10 LAST DECEMBER MR AOKI GOT HIS WAY INCENSED CABBIES FROM RIVAL FLEETS SURROUNDED HIS DRIVERS AND SCREAMED ABUSE AT THEM ANONYMOUS PHONE CALLERS TOLD THE 65YEAROLD KOREAN IMMIGRANT TO GO BACK TO KOREA SOME MUTTERED DEATH THREATS A DOURFACED MAN WITH A THATCHERITE ZEAL FOR MARKET FORCES MR AOKI SEEMS UNRUFFLED BY THE CONTINUING CRITICISM GOING ALONG WITH THE INDUSTRY IS EASY BUT IT DOESN'T DO YOU ANY GOOD HE SAYS SINCE THE RATE CUT REVENUES OF MK AND ITS COMPETITORS HAVE DECLINED BUT MR AOKI'S RIDERSHIP IS UP WHILE THEIRS IS DOWN WRINGING MONEY OUT OF A MATURE INDUSTRY HIS PRIVATELY HELD MK CORP WHICH INCLUDES MK'S 454CAB FLEET TWO BOWLING ALLEYS AND 30 GAS STATIONS EARNED A 64 MILLION PRETAX PROFIT LAST YEAR UNLIKE MOST JAPANESE CAB OPERATORS WHO PAY DRIVERS A PERCENTAGE OF THE TAKE MR AOKI CHARGES HIS CABBIES A FIXED EXPENSE FEE ABOUT 2400 A MONTH FOR A SMALL CAR AND LETS THEM KEEP ANY ADDITIONAL REVENUE THIS PAY STRUCTURE ASSURES MR AOKI A STEADY INCOMEAND ENABLES HARDWORKING DRIVERS TO EARN ABOVEAVERAGE WAGES DRIVING THROUGH DOWNTOWN KYOTO ONE MK CABBY TAKASHI FUCHI GROUSES ABOUT HAVING TO TAKE SHORTER LUNCH BREAKS BUT HE SAYS THE HIGH PAY MAKES HIM STICK WITH THE COMPANY MK DRIVERS EARN AN AVERAGE OF 50000 A YEAR 26 ABOVE THE INDUSTRY AVERAGE IN KYOTO ACCORDING TO COMPANY AND INDUSTRY DATA RECENTLY MK SUFFERED A SETBACK IN ITS PRICE WAR IT HAD TO RESTORE ITS FARES TO THEIR ORIGINAL LEVELS WHILE REGULATORS EVALUATE ITS FARE CUT BUT MR AOKI IS PUSHING TO MAKE THE REDUCTION PERMANENT JAPAN'S MOST SUCCESSFUL COMPANIES ARE WORKING SMARTER AS WELL AS HARDER THEY NEED TO ACCORDING TO NIKKEIREN THE BUSINESS LOBBY JAPANESE WHITECOLLAR WORKERS ARE ROUGHLY TWOTHIRDS AS EFFICIENT AS AMERICANS OVERSTAFFING IS RIFE AND OFFICE TECHNOLOGY BACKWARD INTERNATIONAL DATA CORP'S JAPAN UNIT ESTIMATES THAT ONLY 13 OF ALL JAPANESE WORKERS HAVE COMPUTERS LINKED TO NETWORKS COMPARED WITH 23 IN AMERICA THE MARKET RESEARCH FIRM EXPECTS JAPAN'S NETWORKLINKED COMPUTERS TO GROW SEVENFOLD BY 1997 LEADING THE WAY ARE SUCH OUTFITS AS NEMICLAMBDA KK A MAKER OF ELECTRICPOWER CONVERTERS USED IN ELECTRONIC EQUIPMENT THE 2115EMPLOYEE COMPANY HAS JUST 21 PEOPLE AT ITS HEADQUARTERS IN TOKYO THAT'S PARTLY BECAUSE ITS FOUNDER AND CHAIRMAN RIKIHIRO MADARAME 57 MAKES SOME EMPLOYEES DO EXTRA WORK THE RECEPTIONIST DOUBLES AS AN ENGLISH TRANSLATOR FOUR TOP EXECUTIVES SHARE ONE SECRETARY BUT MR MADARAME'S REAL SECRET IS TECHNOLOGY WHICH DESPITE JAPAN'S SUCCESS IN DEVELOPING NEW PRODUCTS HASN'T MUCH AFFECTED WORK HABITS HERE WITH ONE NETWORKLINKED PERSONAL COMPUTER PER FULLTIME EMPLOYEE NEMIC REAPS BENEFITS FAR EXCEEDING THE SYSTEM'S 335000 ANNUAL RUNNING COST PLANNING DIRECTOR TORU TANIGAWA SAYS THE NETWORK ENABLED NEMIC TO MOVE 22 JOBS FROM TOKYO TO A RURAL PLANT AND SAVE ABOUT 690000 IN ANNUAL RENT A JAPANESE COMPUTER MAGAZINE HAS FEATURED NEMIC'S NETWORK AS A MODEL FOR OTHER COMPANIES TO CONSIDER MOREOVER MR MADARAME DECLARED WAR ON JAPAN'S CORPORATE GROUPISM YEARS AGO WHEN FASTGROWING NEMIC FACED A CASH CRUNCH IN THE LATE 1970S HE CONSIDERED SELLING EQUITY TO JAPANESE COMPANIES BUT INSTEAD HE DID SOMETHING ALMOST UNPRECEDENTED HE PLACED SHARES WITH FRIENDLY BUT MORE HANDSOFF INVESTORS OVERSEAS TODAY BRITAIN'S UNITECH PLC HOLDS A 51 STAKE THE RISKS PAID OFF MR MADARAME'S REMAINING 19 STAKE IS WORTH 212 MILLION JAPAN'S BIG ENTERPRISES FORM KEIRETSU GROUPS AND IF YOU JOIN THEY SEND IN A PRESIDENT TO RUN YOU MR MADARAME SAYS I DIDN'T WANT TO GET TRAPPED IN THE KEIRETSU CULTURE IN FACT HE DID NAME A PRESIDENT IN LATE 1992 PETER HII A 41YEAROLD MALAYSIAN EVEN THOUGH JAPANESE COMPANIES RARELY HIRE FOREIGN MANAGERS OR PROMOTE YOUNG EXECUTIVES TO TOP JOBS YET EVEN MAVERICKS DON'T BREAK ALL THE RULES AS AT MORE CONVENTIONAL COMPANIES PAYROLL REDUCTIONS TYPICALLY COME THROUGH ATTRITION NOR WOULD THE NEW BREED STAND OUT IN A CROWD OF BUSINESSMEN ALL THE EXECUTIVES INTERVIEWED FOR THIS ARTICLE WORE DARK BLUE SUITS AND SOBER TIES BUT THE ESTABLISHMENT VENEER OFTEN MASKS A PASSION FOR SUBVERTING TRADITION AS A TEENAGER TAKEMITSU TAKIZAKI JOINED IN THE EARLY1960S PROTESTS AGAINST JAPAN'S DEFENSE TREATY WITH THE US TODAY THE 48YEAROLD ENTREPRENEUR RUNS KEYENCE CORP AN OSAKAAREA SUPPLIER OF SENSORS USED ON ASSEMBLY LINES IN ITS MAIN OFFICE NO DOORS SEPARATE THE ROOMS IT GIVES A LIBERATED FEELING HE SAYS MR TAKIZAKI HAS SIMILARLY LIBERATED HIS COMPANY FROM MANUFACTURING CONVENTIONS HE CALLS KEYENCE A FACTORYLESS MANUFACTURER IT OPERATES A BIT LIKE A TRADING HOUSE WITH A LABORATORY ATTACHED KEYENCE FIGURED THAT IT COULDN'T IMPROVE ON JAPAN'S LEGENDARY MANUFACTURING EFFICIENCY SO UNLIKE ITS COMPETITORS WHICH FOCUS ON MANUFACTURING AND LEAVE SALES TO AGENTS IT GIVES ITS SUPPLIERS THE JOB OF CUTTING FACTORY COSTS ABOUT 450 OF ITS 900 EMPLOYEES WORK IN DIRECT SALES AND 100 IN RESEARCH AND THAT WORKS DESPITE JAPAN'S SLUGGISH ECONOMY KEYENCE POSTED A 39 PRETAX PROFIT MARGIN ON SALES IN THE YEAR ENDED MARCH 31 1993 COMPARED WITH ABOUT 2 FOR ITS CLOSEST COMPETITOR HOW DOES MR TAKIZAKI DO IT HE BANS INEFFICIENT SALES METHODS HE FORBIDS HIS SALESMEN TO HANDDELIVER PRODUCT FREE OF ANY DELIVERY CHARGE TO CLIENTS A COMMON PRACTICE HERE BUT ONE THAT WOULD LOSE MANY SALES OPPORTUNITIES HE FIGURES INSTEAD KEYENCE SHIPS ITS GOODS BY PARCEL POST KEYENCE'S OTHER ADVANTAGE IS ITS SALES AND RESEARCH STAFF MANY JAPANESE MANUFACTURERS USE INDEPENDENT AGENTS AND WHOLESALERS WHO ADD 20 TO 40 IN UNNECESSARY COST TO A PRODUCT MCKINSEY'S MR SHILL SAYS KEYENCE KEEPS SOME OF ITS SAVINGS AND HOLDS DOWN ITS PRICES AND WHILE THE LARGE STAFF IS COSTLY IT MORE THAN PAYS ITS KEEP BY PICKING UP PRODUCT IDEAS ON FREQUENT FACTORY VISITS FOR EXAMPLE MASAHIKO FUKUDA A 36YEAROLD PRODUCTDEVELOPMENT MANAGER NOTICED THAT A CLIENT A FURNITURE FACTORY WASN'T MAKING FULL USE OF A KEYENCE SIGNAL PROCESSOR THAT CONTROLS A TABLEASSEMBLY LINE HE HELPED DESIGN SOFTWARE THAT MADE THE PROCESSOR EASIER TO OPERATE AND NOW KEYENCE IS MARKETING THE PROGRAM TO OTHER COMPANIES MR FUKUDA WON'T DIVULGE SALES FIGURES BUT SAYS THE SOFTWARE IS SELLING REALLY WELL THAT AN ENTREPRENEUR SUCH AS MR TAKIZAKI IS PUSHING CHANGE MAY NOT BE SURPRISING BUT ALSO DOING SO ARE EVEN SOME CAREER MANAGERS SUCH AS MR ASAO WHO JOINED THE 71YEAROLD TSU CREDIT UNION RIGHT OUT OF COLLEGE WHEN JAPAN LOOSENED BANKING REGULATIONS IN THE EARLY 1980S HE DECIDED TSU CREDIT SHOULD GET LEAN TO COMPETE HIS ELIMINATION OF TSU CREDIT'S CASHCOLLECTION CARS ALLOWED HIM TO WIPE OUT 37 OF 112 JOBS THROUGH ATTRITION TO GET CUSTOMERS TO COME TO HIM HE ADDED PARKING SPACES AND SPRUCED UP THE BANK'S BRANCHES WITH PLUSH COUCHES AND CARPETS THE ECONOMIES MORE THAN OFFSET THE OUTLAYS TSU CREDIT'S RATIO OF LABOR AND OTHER EXPENSES TO TOTAL DEPOSITS HAS FALLEN TO 145 NEARLY HALF A POINT BELOW THE INDUSTRY AVERAGE WITH LESS OVERHEAD TSU IS OFFERING LOANS AT A 457 ANNUAL INTEREST RATE THE LOWEST AMONG JAPAN'S 428 CREDIT UNIONS JUST SOUTH OF TSU MATSUSAKAISE CREDIT UNION DOES BUSINESS THE OLD WAY MAINTAINING A FLEET OF 32 AUTOS AND 60 SCOOTERS MANNED BY 57 CASHCOLLECTING COURIERS MATSUSAKAISE DIRECTOR SHUJI NISHIHARA THINKS MR ASAO'S NEWFANGLED METHODS ARE RISKY DEPOSIT COLLECTION IS WHAT BINDS CUSTOMERS TO A CREDIT UNION MR NISHIHARA SAYS MESHING THE FINGERS OF HIS HANDS WE CAN'T COMPETE ON SCALE WITH THE BIG BANKS JUST ON SERVICE HE SAYS AND IN THE JAPANESE CUSTOMER'S MIND SERVICE IS FREE MAYBE BUT MANY JAPANESE ARE HUNGERING FOR A BETTER DEAL MINAKO MASAKI SAYS TSU CREDIT UNION'S COLLECTORS USED TO DROP BY HER BUSINESS A PUBLIC BATH HOUSE TO PICK UP HER CASH HAVING TO WAIT AROUND FOR THEM WAS KIND OF A NUISANCE THE 46YEAROLD WOMAN RECALLS NOW SHE RIDES HER BIKE TO THE NEAREST BRANCH EVEN BETTER TSU CREDIT GAVE HER A GOOD RATE ON A CONDOMINIUM LOAN CONSIDERABLY LOWER THAN OTHER LENDERS WOULD SHE SAYS MR ASAO SAYS SUCH CUSTOMERS PROVE HIS WAGER IS PAYING OFF IN THIS KIND OF MATURE ECONOMY OUR WAY WILL BE ACCEPTED HE SAYS THOSE WHO HAVE NO MANAGEMENT ABILITY WELL TOO BAD FOR THEM 9404290002 940429 PHILEO SETS SIGHTS ON TAKEOVERS IN QUEST TO BE TOP MALAYSIAN FINANCE CONCERN BY STEPHEN DUTHIE STAFF REPORTER OF THE WALL STREET JOURNAL KUALA LUMPUR MALAYSIA MALAYSIAN ENTREPRENEUR TONG KOOI ONG AND HIS ASSOCIATES ARE QUIETLY WORKING ON A SERIES OF ACQUISITIONS THAT IF COMPLETED WILL CATAPULT THEM INTO THE TOP RANKS OF THE COUNTRY'S BANKING AND FINANCIALSERVICES INDUSTRIES BANKERS AND EXECUTIVES FAMILIAR WITH THE PROPOSALS SAID MR TONG AND HIS ASSOCIATES AT PHILEO ASSETS SDN BHD WANT TO USE THEIR PRIVATE INVESTMENT FIRM TO TAKE OVER PUBLICLY LISTED LINATEX PROCESS RUBBER BHD THE SOURCES SAID THE GROUP WOULD THEN USE LINATEX TO ACQUIRE SEVERAL FINANCIAL INSTITUTIONS AMONG THOSE INSTITUTIONS IS COOPERATIVE CENTRAL BANK A SAVINGS AND CREDIT CONCERN THAT HAS BEEN UNDER THE MALAYSIAN CENTRAL BANK'S SUPERVISION SINCE 1986 ANOTHER PROPOSED TARGET IS THE MALAYSIAN BRANCH OF UNITED OVERSEAS BANK LTD OF SINGAPORE THE SOURCES SAID BANK REGULATORS AND SENIOR GOVERNMENT OFFICIALS HAVE GRANTED PRELIMINARY APPROVALS TO THE PROPOSALS BUT THEY ADDED THAT SEVERAL OTHER POLITICALLY WELLCONNECTED MALAYSIAN BUSINESSMEN ARE TRYING TO OVERTURN THE APPROVALS AND PUSH THROUGH THEIR OWN TAKEOVER PROPOSALS IF THE PHILEO PLAN SUCCEEDS THE 34YEAROLD MR TONG AND HIS ASSOCIATES WOULD EMERGE AT THE HELM OF A FULLFLEDGED FINANCIALSERVICES CONCERN WITH A BANK A FASTGROWING BROKERAGE FIRM AND AN INVESTMENTBANKING OPERATION A SMALL MALAYSIAN CONSUMERFINANCE COMPANY ALSO IS BEING LINED UP FOR ACQUISITION MR TONG ESTABLISHED HIMSELF AS ONE OF MALAYSIA'S LEADING SECURITIES ANALYSTS DURING HIS MORE THAN THREE YEARS AS HEAD OF RESEARCH AT MORGAN GRENFELL ASIA SECURITIES' KUALA LUMPUR OFFICE IN JANUARY 1992 HE STARTED PHILEO PEREGRINE SECURITIES SDN BHD NOW ONE OF MALAYSIA'S FASTESTGROWING BROKERAGE FIRMS THE SAME YEAR MR TONG WHO SERVES AS MANAGING DIRECTOR OF PHILEO PEREGRINE AND NG SENG HIN THE BROKERAGE FIRM'S GENERAL MANAGER OF OPERATIONS SET UP PHILEO ASSETS MR TONG SAID HE LONG ASPIRED TO ESTABLISH A LARGE FINANCIAL AND PROPERTYDEVELOPMENT GROUP REACHED FOR COMMENT MONDAY HE SAID IT'S TOO PREMATURE TO DISCUSS HIS PROPOSALS OTHERS DIRECTLY INVOLVED ALSO DECLINED TO COMMENT IN AUGUST PHILEO ASSETS SIGNED A MEMORANDUM OF UNDERSTANDING WITH HARRISONS & CROSFIELD PLC TO ACQUIRE THE BRITISH COMPANY'S 509 STAKE IN THE RUBBERPRODUCTS MAKER FOR 552 MILLION MALAYSIAN DOLLARS US205 MILLION BASED ON CURRENCY TRADING WEDNESDAY IN NEW YORK THE AGREEMENT CALLED FOR LINATEX THEN TO SELL ITS MANUFACTURING OPERATIONS BACK TO HARRISONS & CROSFIELD FOR M385 MILLION AT THE TIME PHILEO ASSETS SAID IT WOULD USE LINATEX TO EXPAND ITS CAPITAL BASE AND RANGE OF INVESTMENT SERVICES AS WELL AS THOSE OF PHILEO PEREGRINE THE BROKERAGE FIRM ISN'T LINKED FINANCIALLY TO PHILEO ASSETS BUT UNDER THE PLAN LINATEX WAS TO ACQUIRE IT IN EXCHANGE FOR NEW SHARES HONG KONGBASED PEREGRINE BROKERAGE LTD OWNS 30 OF PHILEO PEREGRINE BUT IN FEBRUARY MALAYSIA'S SECURITIES COMMISSION REJECTED THE LINATEX RESTRUCTURING PLAN THE AGENCY GAVE NO REASON FOR ITS DECISION BUT MERCHANT BANKERS SAID REGULATORS DECIDED PHILEO ASSETS AND PHILEO PEREGRINE LACKED THE FINANCIAL TRACK RECORD USUALLY REQUIRED UNDER THE KUALA LUMPUR STOCK EXCHANGE'S LISTING RULES IN ADDITION THEY SAID THE COMMISSION'S CHAIRMAN DATUK MOHAMED MUNIR ABDUL MAJID WAS DISPLEASED BY A RISING NUMBER OF SOCALLED BACKDOOR LISTINGS IN WHICH AN UNLISTED COMPANY INJECTS ITS OWN ASSETS INTO A PUBLICLY TRADED CONCERN IN EXCHANGE FOR A CONTROLLING STAKE THAT'S EXACTLY WHAT THE PHILEO GROUP PLANNED TO DO WITH LINATEX BUT PHILEO WITH THE SUPPORT OF HARRISONS & CROSFIELD DIDN'T GIVE UP IN MARCH MR TONG AND HIS ASSOCIATES INCLUDING AHMAD ABDULLAH WHO REPRESENTS PHILEO PEREGRINE ON THE KLSE SUBMITTED A REVISED PROPOSAL TO REGULATORS THIS TIME THE SOURCES SAID THE TONG GROUP DISCLOSED ITS MUCH BROADER GAME PLAN AFTER RECEIVING THE TENTATIVE BACKING OF FINANCE MINISTER DATUK ANWAR IBRAHIM AND BANK NEGARA THE CENTRAL BANK UNDER THE REVISED PROPOSALS WHICH HAVE YET TO BE ANNOUNCED PHILEO ASSETS WOULD FOLLOW THE ORIGINAL PLAN FOR ACQUIRING LINATEX AND THEN PHILEO PEREGRINE SUBSEQUENTLY THE COMBINED COMPANIES TO BE NAMED PHILEO CAPITAL BHD WOULD ACQUIRE THE FINANCIALLY AILING COOPERATIVE CENTRAL BANK OR CCB FOR AN ESTIMATED M700 MILLION TO FINANCE ITS ACQUISITION OF CCB PHILEO CAPITAL WOULD RAISE FUNDS THROUGH A RIGHTS ISSUE AND A SEPARATE NEWSHARE ISSUE AS WELL AS WITH LOANS FROM THE CENTRAL BANK AND TAX CREDITS FROM YEARS OF LOAN LOSSES BY THE COOPERATIVE PART OF THE PROCEEDS ALSO WOULD BE USED TO REIMBURSE THE COOPERATIVE'S MEMBERS AND THE GOVERNMENT FOR BAILING OUT THE INSTITUTION CCB'S SEVEN BRANCHES WOULD BE CONVERTED INTO BANK BRANCHES AFTER PHILEO CAPITAL ACQUIRES UNITED OVERSEAS BANK'S SINGLE BRANCH CREATING PHILEO BANK BHD THE PHILEO GROUP EXPECTS TO PAY ABOUT M40 MILLION FOR THE UOB BRANCH LOCATED IN KOTA KINABALU THE CAPITAL OF SABAH STATE THE BRANCH REPORTED PROFIT OF JUST ABOVE M26 MILLION FOR 1992 THE LATEST YEAR FOR WHICH DATA ARE AVAILABLE THE BANKERS AND EXECUTIVES SAID UOB CHAIRMAN WEE CHO YAW IS EAGER TO SELL THE MALAYSIAN BRANCH IN ADDITION TO ITS OWN BRANCH UOB OWNS TWO RELATIVELY LARGE BANKS IN MALAYSIACHUNG KHIAW BANK LTD AND LEE WAH BANK LTD THE SOURCES SAID THE SALE OF THE UOB BRANCH TO DOMESTIC INTERESTS WOULD BOOST UOB'S NEGOTIATING POSITION AT A TIME WHEN ALL FOREIGN BANKS OPERATING IN MALAYSIA FACE AN OCT 1 DEADLINE TO INCORPORATE BRANCH OPERATIONS AS MALAYSIAN COMPANIES BY VOLUNTARILY SELLING THE UOB BRANCH THE BANK STANDS A BETTER CHANCE OF MERGING CHUNG KHIAW AND LEE WAH OR RETAINING CONTROL OF BOTH INDEPENDENTLY SAID A BANKER NOTING THAT UOB IS THE ONLY FOREIGN BANK WITH A BRANCH AND TWO SEPARATE BANKS IN MALAYSIA THE BANK WOULD WALK AWAY WITH SOME MONEY AND ITS MALAYSIANIZATION PROGRAM MAY BE VIEWED KINDLY BY BANK NEGARA MALAYSIA'S BANKING AND FINANCIAL INSTITUTIONS ACT WHICH THE PARLIAMENT APPROVED IN 1989 DOESN'T REQUIRE FOREIGN BANKS TO SELL AN INTEREST IN THEIR OPERATIONS TO MALAYSIAN PARTIES BUT BANK NEGARA OFFICIALS HAVE SAID REPEATEDLY THAT IF A FOREIGN BANK WISHES TO EXPAND ITS MALAYSIAN OPERATIONS IT WILL HAVE TO SELL A MAJORITY STAKE TO LOCAL INTERESTS AMONG SUBSEQUENT MOVES THE PHILEO GROUP PROPOSES TO ACQUIRE PETRA FINANCE BHD THE AILING CONSUMERFINANCE COMPANY LIKE CCB HAS BEEN UNDER CLOSE GOVERNMENT SUPERVISION AND NEEDS ADDITIONAL CAPITAL TO REMAIN AFLOAT 9404290001 940429 US PULLS BACK ON TRADE BATTLE WITH JAPANESE ADMINISTRATION TO HOLD OFF ON PURSUING SANCTIONS OVER PURCHASING POLICY BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SIGNALING A TEMPORARY CEASEFIRE IN THE TRADE BATTLE WITH JAPAN THE CLINTON ADMINISTRATION HAS DECIDED AGAINST PURSUING TRADE SANCTIONS OVER TOKYO'S GOVERNMENTPROCUREMENT PRACTICES THE DECISION REFLECTS A DETERMINATION THAT THE NEW MINORITY GOVERNMENT OF JAPANESE PRIME MINISTER TSUTOMU HATA IS SO WEAK THAT RENEWED US PRESSURE WOULDN'T DO ANY GOOD ADMINISTRATION OFFICIALS SAID THEY BELIEVE MR HATA IS COMMITTED TO RESOLVING THE TRADE DISPUTES AND THEY WANT TO GIVE HIM A CHANCE MOREOVER THEY SAID THE US SHOULD TRY TO REVAMP ITS IMAGE IN JAPAN WHERE IT HAS BEEN CAST AS A BULLY IN THE ONGOING TRADE BATTLE MR HATA IS FOCUSED ON THE AMERICAN RELATIONSHIP AND HE HAS PROBLEMS SAID A SENIOR ADMINISTRATION OFFICIAL WE'D RATHER WORK WITH HIM UNDER CONGRESSIONAL DEADLINES THE ADMINISTRATION HAS UNTIL TOMORROW TO NAME NATIONS WHOSE PURCHASING POLICIES DISCRIMINATE AGAINST US COMPANIES THE US THEN IS SUPPOSED TO LAUNCH NEGOTIATIONS TO RESOLVE THE PROBLEMS AND EVENTUALLY LEVY SANCTIONS IF IT CAN'T CUT A DEAL TWO WEEKS AGO SENIOR ADMINISTRATION OFFICIALS SAID JAPAN WAS BOUND TO BE ON THAT LIST BUT IT WASN'T CLEAR WHETHER THE US WOULD GO AFTER PURCHASES OF MEDICAL EQUIPMENT TELECOMMUNICATIONS OR COMPUTERS HOWEVER AS THE POLITICAL SITUATION IN JAPAN DETERIORATED SO DID THE WILL TO PICK ANOTHER TRADE FIGHT ADMINISTRATION OFFICIALS KNOW THAT SUCH TENSION PROBABLY WOULD FURTHER THE RISE IN THE YEN'S VALUE AGAINST THE DOLLAR WHICH IS ALREADY NEARING ITS POSTWAR LOW AGAINST THE JAPANESE CURRENCY BUT THEY DENY THAT EXCHANGERATE CONSIDERATIONS PLAYED A ROLE IN THEIR DECISION TO BACK OFF LATE YESTERDAY THE DOLLAR TRADED AT 1013 YEN JUST SHORT OF ITS RECORD LOW OF 1004 YEN AS PART OF ITS STRATEGY THE ADMINISTRATION ALSO IS TONING DOWN ITS RHETORIC TOWARD JAPAN EARLIER THIS WEEK THE US TRADE REPRESENTATIVE'S OFFICE RESERVED A LARGE AUDITORIUM TO ANNOUNCE ITS PROCUREMENT DECISION TODAY BUT IN ITS NEW SPEAK SOFTLY MODE THE TRADE REPRESENTATIVE'S OFFICE CANCELED THE NEWS CONFERENCE AND WILL ISSUE A STATEMENT INSTEAD THE TONE REFLECTS THE INFLUENCE OF THE US AMBASSADOR TO JAPAN WALTER MONDALE WHO HAS BEEN A MODERATING INFLUENCE ON CLINTON TRADE POLICY ADMINISTRATION OFFICIALS SAID THEY WERE ENCOURAGED BY MR HATA'S MEETING WITH TRADE REPRESENTATIVE MICKEY KANTOR IN MARRAKESH MOROCCO EARLIER THIS MONTH IN WHICH MR HATA SEEMED SINCERE ABOUT TRYING TO END THE TRADE DISPUTE BUT THE WHITE HOUSE IS HARDLY DECLARING A PERMANENT TRUCE IN ITS TRADE BATTLE WITH JAPAN THE TRADE REPRESENTATIVE'S OFFICE INTENDS TO ANNOUNCE TODAY THAT JAPAN REMAINS UNDER REVIEW CONCERNING GOVERNMENT PURCHASES THE US COULD DECIDE BY THE END OF JUNE WHETHER TO PRESS AHEAD WITH TRADE ACTION ON THAT FRONT MOREOVER TOKYO ALREADY FACES SEVERAL OTHER TRADE DEADLINES THE JAPANESE GOVERNMENT HAS PROMISED TO PROVIDE BY THE END OF JUNE MORE DETAILS ON ITS PLAN TO OPEN THE JAPANESE ECONOMY TO IMPORTS AND ON SEPT 30 THE US WILL DECIDE WHETHER TO NAME JAPAN UNDER A TOUGH TRADE PROVISION CALLED SUPER 301 AS A PRIORITY TARGET FOR INVESTIGATIONS THAT COULD LEAD TO BROAD SANCTIONS SEPARATELY THE ADMINISTRATION ALSO IS DECIDING WHETHER TO DEFER TAKING TRADE ACTION TODAY AGAINST CHINA DUE TO POLITICAL REASONS UNDER A SEPARATE CONGRESSIONAL DEADLINE THE TRADE REPRESENTATIVE'S OFFICE WILL NAME COUNTRIES TODAY THAT FAIL TO PROTECT INTELLECTUAL PROPERTY THE US CONTENDS THAT CHINESE FACTORIES PUMP OUT MILLIONS OF PIRATED COMPACT DISKS WHICH ORDINARILY WOULD BE ENOUGH TO INCLUDE CHINA ON THE LIST OF PRIORITY TARGETS BUT THE STATE DEPARTMENT IS ARGUING THAT THE DESIGNATION SHOULD BE DEFERRED IN ORDER TO REDUCE TENSION BETWEEN THE TWO COUNTRIES ON JUNE 3 THE US MUST DECIDE WHETHER TO IMPOSE STIFF TARIFFS ON CHINESE GOODS BECAUSE OF CONCERNS ABOUT HUMAN RIGHTS VIOLATIONS 9404290090 940311 ABREAST OF THE MARKET INDUSTRIALS DROP 2279 AMID FALL IN BONDS AND WHITEWATER RUMORS BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCK PRICES RETREATED AMID A SHARP SELLOFF IN BONDS AND A BARRAGE OF RUMORS ABOUT THE WHITEWATER AFFAIR THE DOW JONES INDUSTRIAL AVERAGE TUMBLED AS MUCH AS 38 POINTS AT THE HEIGHT OF THE SELLING BEFORE RECOVERING PARTIALLY IN LATE TRADING TO FINISH WITH A LOSS OF 2279 OR 059 TO 383062 BROADBASED INDEXES POSTED SIMILAR LOSSES WHILE DECLINING ISSUES SWAMPED ADVANCERS BY 1486 TO 688 ON THE NEW YORK STOCK EXCHANGE VOLUME THERE WAS ACTIVE AT 333481000 SHARES UP FROM 309803000 WEDNESDAY AFTER A DAY OF STABILIZATION WEDNESDAY THE BOND MARKET CRUMBLED AGAIN THE TREASURY'S 30YEAR ISSUE DOWN NEARLY A POINT TWO SESSIONS AGO SLUMPED MORE THAN 1 5/8 YESTERDAY LIFTING ITS YIELD TO 698 THE HIGHEST LEVEL SINCE MAY ALTHOUGH BOND MARKET LOSSES ALONE HAVE BEEN ENOUGH TO CLOBBER STOCKS RECENTLY STOCK INVESTORS ALSO FACED A TORRENT OF RUMORS ABOUT PRESIDENT CLINTON'S INVOLVEMENT IN THE WHITEWATER MATTER ANALYSTS HAVE SENT OUT WARNINGS ALL WEEK THAT WHITEWATER COULD BOG DOWN THE ADMINISTRATION HURTING ITS LEGISLATIVE INITIATIVES AND CAUSING ENOUGH UNCERTAINTY TO PUSH STOCK PRICES LOWER BUT THERE HADN'T BEEN ANY MATERIAL EFFECT ON THE OVERALL MARKET UNTIL YESTERDAY THE STANDARD & POOR'S 500 STOCK INDEX DROPPED 316 OR 068 TO 46390 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 156 OR 060 TO 25722 THE NASDAQ COMPOSITE INDEX DECLINED 396 OR 050 TO 78909 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX SHED 201 OR 043 TO 46478 AT THE CENTER OF THE RUMORS WAS A REPORT ISSUED BY WASHINGTONBASED ECONOMIC CONSULTANCY JOHNSON SMICK INTERNATIONAL THAT SUGGESTED NEW EVIDENCE COULD EMERGE ON MR CLINTON'S FINANCIAL DEALINGS AND ON THE CIRCUMSTANCES OF THE SUICIDE OF FORMER WHITE HOUSE ATTORNEY VINCENT FOSTER THE WHITE HOUSE DISMISSED STATEMENTS IN THE REPORT AS UNTRUE A SPOKESMAN FOR JOHNSON SMICK COULDN'T BE REACHED FOR COMMENT THE CONSULTANCY IS RUN BY MANUEL JOHNSON A FORMER FEDERAL RESERVE BOARD VICE CHAIRMAN AND DAVID SMICK A WASHINGTON INSIDER AND FORMER CONGRESSIONAL AIDE THOMAS D GALLAGHER A POLITICAL ANALYST AT LEHMAN BROTHERS THOUGH SAID THE RUMORS SHOULD EASE SOON RETURNING WHITEWATER TO THE BACKGROUND OF INVESTOR PSYCHOLOGY THE QUESTION IS WHEN DOES THIS BECOME IMPORTANT FOR THE FINANCIAL MARKETS THE ANSWER IS WHEN THE SCANDAL GROWS ENOUGH TO CRIPPLE THE PRESIDENT I THINK WE ARE A LONG WAY FROM THAT HE SAID GRUMMAN EASED 1/8 TO 54 7/8 ON THE BIG BOARD BUT SURGED TO 61 3/4 IN AFTERHOURS TRADING FOLLOWING NEWS THAT NORTHROP WILL OFFER 60 A SHARE OR 204 BILLION FOR THE AEROSPACE COMPANY EARLIER THIS WEEK GRUMMAN AGREED TO BE ACQUIRED BY MARTIN MARIETTA FOR 55 A SHARE SHARES OF NORTHROP ADDED 1/2 TO 41 1/8 ON THE BIG BOARD AND TRADED AT 41 1/4 AFTER HOURS MARTIN MARIETTA ROSE 1/2 TO 46 1/2 THE BETHESDA MD COMPANY'S STOCK WASN'T ACTIVE AFTER THE BIG BOARD CLOSE INTEL SLIPPED 1 1/2 TO 70 1/8 ON THE NASDAQ STOCK MARKET AFTER A JURY RULED IN FAVOR OF ADVANCED MICRO DEVICES IN A COPYRIGHTINFRINGEMENT SUIT BETWEEN THE TWO CHIP MAKERS INTEL SAID IT WILL APPEAL SHARES OF ADVANCED MICRO JUMPED 6 1/8 TO 28 7/8 ANALYSTS HAVE PREDICTED THAT A VICTORY IN THE LITIGATION WOULD GIVE ADDED LEGITIMACY TO THE COMPANY'S EFFORT TO CUT INTO INTEL'S SHARE OF THE MARKET FOR CHIPS THAT CONTROL PERSONAL COMPUTERS ADOBE SYSTEMS RALLIED 1 1/4 TO 32 3/8 ON NASDAQ AFTER THE COMPANY SAID IT EXPECTS A CONTINUED RECOVERY IN ITS COMPUTER PRINTER SOFTWARE BUSINESS ITS CHIEF EXECUTIVE OFFICER JOHN WARNOCK SAID WEAKNESS IN SALES OF ITS POSTSCRIPT SOFTWARE LAST SUMMER APPEARS TO HAVE BEEN AN ANOMALY PRECIOUSMETALS STOCKS ADVANCED AS THE PRICE OF GOLD SURGED AMERICAN BARRICK ADDED 1 TO 25 1/4 NEWMONT MINING 1 TO 53 3/8 AND HOMESTAKE MINING 1 TO 21 ON THE AMEX ECHO BAY MINES WAS UP 1/2 TO 12 3/4 AND PEGASUS GOLD ADVANCED 1 3/8 TO 20 1/8 GOLD FOR APRIL DELIVERY CLIMBED 810 TO 38820 AN OUNCE IN NEW YORK BLOCKBUSTER ENTERTAINMENT LOST 1 1/4 TO 25 5/8 IT SAID IT PURCHASED 23 MILLION SHARES OF VIACOM'S CLASS B STOCK FOR 125 BILLION THE TRANSACTION IS PART OF THE PLANNED MERGER OF THE TWO COMPANIES VIACOM B STOCK DROPPED 1 1/4 TO 25 5/8 ON THE AMEX GERBER PRODUCTS LOST 1 7/8 TO 31 AFTER SURGING 4 1/8 WEDNESDAY ON RUMORS THAT NESTLE MIGHT SEEK TO ACQUIRE THE COMPANY NESTLE BASED IN SWITZERLAND YESTERDAY SAID IT HAD NO COMMENT SEPARATELY SALOMON BROTHERS LOWERED A RATING ON GERBER TO HOLD FROM BUY SEE RELATED LETTER LETTERS TO THE EDITOR OUR ROLE DISTORTED IN WHITEWATER RUMORS WSJ APRIL 29 1994 9403110183 YY94 MM04 9404290089 940323 REGULATORY CHOKEHOLD DISABILITIES LAW HEALTH HAZARD BY JAMES BOVARD THE MOVIE PHILADELPHIA PORTRAYING A LAW FIRM'S DISCRIMINATION AGAINST AN AIDSINFECTED LAWYER WON TWO ACADEMY AWARDS MONDAY NIGHT WHILE THE MOVIE IS GENERATING SYMPATHY FOR PEOPLE WITH AIDS LITTLE ATTENTION IS BEING PAID TO THE PEOPLE WHOSE LIVES ARE BEING ENDANGERED BY FEDERAL POLICIES THAT INCREASINGLY PREVENT COMPANIES FROM PROTECTING EMPLOYEES OR CUSTOMERS FROM CONTAGIOUS FATAL DISEASES FEW PEOPLE REALIZE HOW EXPANSIVE THE AMERICANS WITH DISABILITIES ACT IS AND HOW IT CAN THREATEN THEIR OWN HEALTH THE SUPREME COURT LAID THE GROUNDWORK FOR A BROAD PROTECTION OF THE RIGHTS OF CONTAGIOUS PEOPLE IN A 1987 DECISION THAT A SCHOOL BOARD WRONGFULLY FIRED A TEACHER WITH TUBERCULOSIS UNDER THE ADA PASSED IN 1990 ANY PHYSIOLOGICAL DISORDER OR CONDITION WHICH SUBSTANTIALLY LIMITS ONE OF A PERSON'S MAJOR LIFE ACTIVITIES' CAN BE CLASSIFIED AS A HANDICAP THAT EMPLOYERS ARE PROHIBITED FROM DISCRIMINATING AGAINST SINCE CONTAGIOUS DISEASES ARE PHYSIOLOGICAL DISORDERS VOILA DISCRIMINATING AGAINST PEOPLE WITH CONTAGIOUS DISEASE CAN BE A FEDERAL CRIME EMPLOYERS ARE NOW REQUIRED TO HIRE PEOPLE WITH CONTAGIOUS DISEASES UNLESS THEY CAN PROVE THAT THE PERSON POSES A LARGE RISK TO OTHER WORKERS OR THEIR CUSTOMERS THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION IN ITS IMPLEMENTING REGULATIONS FOR THE ADA ANNOUNCED DETERMINING WHETHER AN INDIVIDUAL POSES A SIGNIFICANT RISK OF SUBSTANTIAL HARM TO OTHERS MUST BE MADE ON A CASE BY CASE BASIS SIGNIFICANT RISK WAS DEFINED IN CONGRESSIONAL REPORTS AUTHORIZING THE LAW AS A HIGH PROBABILITY OF SUBSTANTIAL HARM IT IS EXTREMELY UNLIKELY THAT SOMEONE COULD CONTRACT AIDS AS A RESULT OF EATING A MEAL PREPARED BY AN AIDSINFECTED PERSON BUT SUCH INDIVIDUALS OFTEN ARE HIT BY OTHER ILLNESSES SUCH AS TUBERCULOSIS THAT ARE CONTAGIOUS A FARMINGTON CONN RESTAURANT WAS SUED BY THE STATE COMMISSION ON HUMAN RIGHTS AND OPPORTUNITIES AFTER THE RESTAURANT REFUSED TO REHIRE AN AIDSINFECTED WAITER WHO HAD TAKEN A LEAVE AFTER COMING DOWN WITH DOUBLE PNEUMONIA THE HARTFORD COURANT NOTED THAT THE WAITER STARTED LOSING WEIGHT AND BECAME SLUGGISH AND WEAK HE LEFT FOOD UNDER THE WARMERS TOO LONG AND HIS HANDS SHOOK SO MUCH THAT HE COULDN'T CARRY COCKTAIL TRAYS THE PRESUMPTIONS CREATED IN THE ADA CAN TURN EVERY DECISION ABOUT THE JOB AND WORK ASSIGNMENTS OF A CONTAGIOUS INDIVIDUAL INTO A COURT BATTLE CIVILRIGHTS POLICY CONCERNING CONTAGIOUS DISEASES IS INFLUENCING FIREFIGHTING IN A PATHBREAKING CASE LAST DECEMBER FEDERAL JUDGE JOYCE HENS GREEN RULED THAT THE DISTRICT OF COLUMBIA FIRE DEPARTMENT VIOLATED AN INFECTIOUS FIREFIGHTER'S CIVIL RIGHTS BECAUSE HE WAS SPECIFICALLY PROHIBITED FROM DOING MOUTHTOMOUTH RESUSCITATION BUT THE FIREFIGHTER HAD HEPATITIS B WHICH INFECTS 300000 PEOPLE AND KILLS 7000 PEOPLE A YEAR THE BIGGEST IMPACT OF THE NEW DISCRIMINATIONCONTAGION PHILOSOPHY IS ON HEALTH CARE THE FEDERAL DEPARTMENT OF HEALTH AND HUMAN SERVICES PENALIZED A WESTCHESTER COUNTY NY HOSPITAL IN 1992 BECAUSE IT PREVENTED AN HIVPOSITIVE PHARMACIST FROM PREPARING INTRAVENOUS SOLUTIONS EVEN THOUGH THE HOSPITAL DID OFFER THE PHARMACIST ANOTHER POSITION WHERE THERE WAS FAR LESS DANGER OF TRANSMITTING THE DISEASE HOSPITAL THE JOURNAL OF THE AMERICAN HOSPITAL ASSOCIATION NOTED THAT THE WESTCHESTER HOSPITAL JUSTIFIED ITS STANCE BY NOTING ITS LARGE NUMBER OF VERY ILL PATIENTS AND THAT PHARMACISTS OFTEN STICK THEMSELVES ACCIDENTALLY AND MUST BREAK GLASS VIALS IN ORDER TO PREPARE IV SOLUTIONS IN A WORSTCASE SCENARIO PHARMACISTS COULD STICK THEMSELVES WITH A FINEGAUGE NEEDLE AND BE UNAWARE OF IT THAT NEEDLE WOULD THEN BE INSERTED IN A BAG WITH SOLUTIONS CONTAMINATE THE SOLUTION AND THEN INFECT A PATIENT BUT FEDERAL OFFICIALS RULED THAT THE HOSPITAL VIOLATED THE RIGHTS OF THE INFECTIOUS PHARMACIST THE HOSPITAL WAS FORCED TO PAY HIM 330000 FOR AMONG OTHER THINGS THE EMOTIONAL DAMAGE IT HAD INFLICTED ON HIM FEDERAL REGULATIONS ARE RESULTING IN A CLOAK OF SECRECY BEING IMPOSED ON WHAT MAY BE LIFEORDEATH INFORMATION TO PATIENTS THE ADA GAVE HEALTH CARE WORKERS THE RIGHT TO CONTINUE PERFORMING INVASIVE SURGERY WITHOUT DISCLOSING TO PATIENTS THAT THERE IS A RISK THAT THEY COULD CONTRACT AIDS FROM THE HEALTH CARE PROVIDER THERE ARE ROUGHLY 7000 HIVPOSITIVE PHYSICIANS IN THE US A 1992 CENTERS FOR DISEASE CONTROL STUDY OBSERVED THAT UNDER ONE SET OF ASSUMPTIONS THE ESTIMATED PROBABILITY THAT AN HIVINFECTED SURGEON WILL TRANSMIT HIV AT LEAST ONCE DURING THE REST OF HIS/HER CAREER IS 81 EVEN IF A DOCTOR WITH HIV LIES TO HIS PATIENTS AND CLAIMS NOT TO BE INFECTIOUS HE IS STILL ENTITLED TO FULL PROTECTION UNDER THE ADA PHILIP BENSON A MINNEAPOLIS PHYSICIAN CONTINUED DELIVERING BABIES AND DOING INVASIVE GENITAL AND RECTAL EXAMINATIONS FOR NEARLY A YEAR AFTER HE CAME DOWN WITH AIDS THE MINNESOTA BOARD OF MEDICAL EXAMINERS IN SEPTEMBER 1990 PERMITTED HIM TO CONTINUE PRACTICING EVEN AFTER HE HAD OPEN SORES ON HIS HANDS AND ARMS AS LONG AS HE WORE DOUBLE GLOVES DR BENSON REPORTEDLY LIED TO HIS PATIENTS WHEN THEY ASKED QUESTIONS ABOUT HIS SORES AND HIS SHARP WEIGHT LOSS AND ALSO ALLEGEDLY FAILED TO WEAR GLOVES DURING SOME EXAMINATIONS WHILE MANY HIVINFECTED SURGEONS VOLUNTARILY CEASE PRACTICING OTHERS ARE NOT SO INCLINED IN LATE 1992 AN AIDSINFECTED ORTHOPEDIC SURGEON SUED MERCY CATHOLIC MEDICAL CENTER OF PHILADELPHIA FOR REVOKING HIS HOSPITAL PRIVILEGES THE HOSPITAL OFFERED TO ALLOW THE SURGEON TO CONTINUE PRACTICING IF HIS PATIENTS SIGNED CONSENT FORMS STATING THAT THEY HAD BEEN INFORMED OF THE DOCTOR'S HIV STATUS THE SURGEON SUED AMERICAN MEDICAL NEWS NOTED ADVOCATES FOR PEOPLE WITH HIV INSIST THAT REQUIRING NOTIFICATION OF PATIENTS IS TANTAMOUNT TO REVOKING HOSPITAL PRIVILEGES THE SUIT IS STILL PENDING THE FAILURE OF POLICIES THAT INDULGE INFECTIOUS SURGEONS WAS MADE STARK IN A RECENT INVESTIGATION OF A UCLA SURGEON WHO SPREAD HEPATITIS B TO 18 PATIENTS UNDERGOING HEART SURGERY IN 199192 AMAZINGLY THE HOSPITAL HAD TESTED THE SURGEON DISCOVERED HE WAS INFECTED AND YET STILL PERMITTED HIM TO CONTINUE OPERATING WITHOUT WARNING PATIENTS OF THE ADDITIONAL DEADLY RISKS THEY FACED THE HEPATITIS WAS APPARENTLY SPREAD TO PATIENTS THROUGH TINY HOLES IN SURGICAL GLOVES THE NEW YORK TIMES NOTED YESTERDAY THAT THE HOSPITAL'S DECISION TO ALLOW THE SURGEON TO KEEP ON OPERATING EVEN AFTER HE WAS FOUND TO BE INFECTED IS IN COMPLIANCE WITH FEDERAL GUIDELINES THE UCLA CASE MAKES A MOCKERY OF THE CDC'S UNIVERSAL PRECAUTIONS WHICH IF FOLLOWED SUPPOSEDLY PROTECT PATIENTS FROM INFECTED DOCTORS AND DENTISTS YET STUDIES IN RECENT YEARS HAVE FOUND THAT AS MANY AS 47 OF GLOVES SUFFER FROM DEFECTS PUNCTURES OR LEAKS DURING SURGERY THE ADA IS ALSO RESTRICTING HOW HEALTH CARE WORKERS MAY PROTECT THEMSELVES FROM CONTAGIOUS PATIENTS THE CDC HAS IDENTIFIED 120 CASES OF DOCUMENTED OR POSSIBLE OCCUPATIONAL TRANSMISSION OF AIDS/HIV TO HEALTH CARE WORKERS AND HEPATITIS B KILLS OVER 200 HEALTH CARE WORKERS A YEAR THE OFFICIAL NEWS MAGAZINE OF THE AMERICAN DENTAL ASSOCIATION WARNED DENTISTS LAST NOVEMBER THAT DENTISTS SHOULD BE AWARE THAT THEY COULD BE CHARGED WITH DISCRIMINATION FOR USING EXTRA PRECAUTION' WHILE TREATING HIV PATIENTS UNFORTUNATELY FEDERAL POLICY TOWARD CONTAGIOUS DISEASES SEEMS INCREASINGLY SIMPLY A QUESTION OF CLOUT IN WASHINGTON IN 1990 THE INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS A POLITICALLY POWERFUL UNION SUCCEEDED IN PERSUADING CONGRESS TO INCLUDE A PROVISION IN A LAW REQUIRING THAT EMERGENCY RESPONSE EMPLOYEES BE NOTIFIED WHEN THEY HAD BEEN EXPOSED TO AIRBORNE INFECTIOUS DISEASE IT IS PECULIAR TO SEE HOW FAR FEDERAL LAW GOES TO PROTECT FIREFIGHTERS INFECTED OR OTHERWISE FIREFIGHTERS MUST BE NOTIFIED WHEN THEY HAVE BEEN EXPOSED TO THE PLAGUE EVEN THOUGH PERSONTOPERSON TRANSMISSION OF PLAGUE HAS NOT BEEN DOCUMENTED SINCE 1924 AS A FEDERAL REGISTER NOTICE OBSERVED MONDAY FIREFIGHTERS AND EMERGENCY MEDICAL TECHNICIANS HAVE A FEDERAL RIGHT TO BE NOTIFIED ANY TIME THEY ARE IN THE SAME VEHICLE WITH A PERSON WITH TB YET HOSPITAL PATIENTS HAVE NO RIGHT TO BE NOTIFIED WHEN THEIR SURGEON IS HIV POSITIVE DESPITE THE CDC STUDY SHOWING THAT THERE COULD BE AN 8 CHANCE THAT AN HIVINFECTED SURGEON WILL EFFECTIVELY KILL ONE OF HIS PATIENTS BY SPREADING HIV FEDERAL POLICY MAKERS ACT AS IF IT IS MORE IMPORTANT TO MINIMIZE PREJUDICE AGAINST PEOPLE WITH INFECTIOUS DISEASES THAN TO MINIMIZE THE SPREAD OF THE DISEASES THEMSELVES THE AMERICANS WITH DISABILITIES ACT IS CREATING A CIVIL RIGHT THAT IS THE ANTITHESIS OF INDIVIDUAL RIGHTS OF FREEDOM OF CONTRACT AND OF THE RIGHT OF INFORMED CONSENT MAYBE SOMEDAY SOMEONE WILL MAKE A MOVIE ABOUT IT MR BOVARD WRITES OFTEN ON PUBLIC POLICY SEE RELATED LETTER LETTERS TO THE EDITOR HIV THE ADA AND NEEDLESS HYSTERIA WSJ APRIL 29 1994 9403230072 YY94 MM04 9404280165 940428 POLITICS & POLICY HEALTHCARE PROPOSALS WITH CONCESSIONS FOR SMALL FIRMS DRAW POSITIVE RESPONSE BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONCESSIONS TO SMALL BUSINESSES SUGGESTED BY HOUSE ENERGY AND COMMERCE COMMITTEE LEADERS DREW ENCOURAGEMENT FROM A LEADING SOUTHERN DEMOCRATIC MODERATE AND WOULDBE BROKER ON HEALTH REFORM LOUISIANA SEN JOHN BREAUX MR BREAUX SAID YESTERDAY THAT PROPOSALS BY ENERGY AND COMMERCE CHAIRMAN JOHN DINGELL D MICH REPRESENT AN OPENING TO RESOLVING THE CONTROVERSIAL ISSUE OF HOW TO SPREAD THE COST OF HEALTH CARE AMONG EMPLOYERS IT'S SOMETHING THAT NEEDS TO BE DISCUSSED SAID MR BREAUX IN A BRIEF INTERVIEW I WANT TO BE PART OF THE SOLUTION SENATE MAJORITY LEADER GEORGE MITCHELL D MAINE WELCOMED THOSE COMMENTS I BELIEVE HE'S SERIOUS IT'S A GOOD AND POSITIVE SIGN MR MITCHELL SAID I HOPE TO FOLLOW UP WITH HIM IN THE NEXT FEW DAYS MR BREAUX'S REMARKS FOLLOW A CLOSEDDOOR DEMOCRATIC CAUCUS THIS WEEK IN WHICH HE WAS CONSPICUOUS IN PRAISING MR DINGELL'S ENDEAVORS HIS VIEWS ARE SIGNIFICANT NOT ONLY BECAUSE HE IS A MEMBER OF THE SENATE FINANCE COMMITTEE BUT ALSO BECAUSE OF HIS TIES TO DEMOCRATIC MODERATES IN THE HOUSE WHO HAVE JOINED HIM IN COSPONSORING A MAJOR BUSINESSBACKED ALTERNATIVE TO THE CLINTON HEALTH PLAN CHIEF AMONG THESE IS TENNESSEE REP JIM COOPER WHOSE VOTE ON THE ENERGY AND COMMERCE PANEL WOULD ENABLE CHAIRMAN DINGELL TO END THE CURRENT STALEMATE ON THE PANEL THE BOTTOM LINE IS WE'RE STILL HOLDING OUR CARDS SAID MR COOPER YESTERDAY COOPER WILL ALWAYS BE WELCOME ON THE TRAIN SAID REP MIKE SYNAR D OKLA A FRIEND OF THE TENNESSEE LAWMAKER AND FELLOW MEMBER OF THE ENERGY AND COMMERCE COMMITTEE BUT THIS MAY BE THE LAST TIME HE GETS TO PUT ONE OF THE CARS ON THE TRACK THE COMMITTEE'S POLITICS ARE COLORED BY MR COOPER'S RACE FOR THE SENATE BACK HOME IN TENNESSEE THE YOUNG LAWMAKER HAS CAST HIMSELF AS AN OUTSIDER AND IS LEERY OF COMPROMISES AT THIS POINT BUT AT THE SAME TIME HE FACES CONTINUED CRITICISM FOR RELYING ON THE BUSINESS AND MEDICAL ESTABLISHMENT TO FINANCE HIS CAMPAIGN AND HE COULD BE HELPED BY SHOWING MORE INDEPENDENCE OF THESE VESTED INTERESTS THE CLINTON PLAN WOULD REQUIRE ALL EMPLOYERS TO HELP PAY FOR THEIR WORKERS' INSURANCE SUBSIDIES WOULD EASE THE BURDEN ON SMALL COMPANIES BUT THE PROPOSAL NEVERTHELESS HAS MET FIERCE WELLORGANIZED OPPOSITION FORCING DEMOCRATS TO OFFER CONCESSIONS MR DINGELL'S LATEST DRAFT BILL EFFECTIVELY WOULD EXEMPT COMPANIES WITH FEWER THAN 10 WORKERS AND THOSE COMPANIES EMPLOYING BETWEEN 10 AND 20 WORKERS WOULD BE SUBJECT TO A PAYROLL LEVY OF 1 TO 2 TO HELP DEFRAY THE COSTS OF COVERAGE THE IDEA OF REDUCING THE BURDEN AND MOVING AWAY FROM A FLAT MANDATE IS PART OF WHAT APPEALS TO MR BREAUX WHO HAS ARGUED FOR A GRADUAL APPROACH TO ACHIEVING THE PRESIDENT'S GOAL OF ENSURING COVERAGE FOR ALL AMERICANS BUT HOUSE REPUBLICANS HAVE REFUSED TO BREAK WITH THEIR TRADITIONAL BUSINESS ALLIES ON THE ISSUE FORCING CHAIRMAN DINGELL TO TRY TO BUILD HIS MAJORITY AMONG DEMOCRATS ALONE THIS PARTISAN ATMOSPHERE IS AN ADDED DISCOMFORT FOR REP COOPER AND A SECOND MODERATE DEMOCRAT REP JAMES SLATTERY WHO IS RUNNING FOR GOVERNOR IN KANSAS ONE OPTION UNDER CONSIDERATION IS FOR DEMOCRATS TO REPORT OUT TWO BILLS THE DINGELL COMPROMISE VERSION AND THE MORE CONSERVATIVE COOPERBREAUX BILL WHICH DOESN'T HAVE AN EMPLOYER MANDATE THE HOUSE DEMOCRATIC LEADERSHIP MAY DELAY FLOOR CONSIDERATION UNTIL THE SENATE FINANCE COMMITTEE HAS DRAFTED ITS OWN VERSION OF HEALTHCARE REFORM THAT WOULD GIVE HOUSE LEADERS TIME FOR FURTHER COMPROMISES TO REFLECT THE OUTCOME THERE TO SUPPORT A BAD BILL IS NOT A WAY TO GET A GOOD BILL SAID MR COOPER BUT HE AND SEN BREAUX KNOW THEIR BILL FACES RENEWED CRITICISM THE CONGRESSIONAL BUDGET OFFICE IS SLATED NEXT WEEK TO RELEASE A STUDY CHALLENGING THEIR FINANCING SCHEME ABSENT ADDITIONAL SAVINGS OR REVENUE THE REPORT SUGGESTS THEIR BILL WOULD HAVE TO OFFER A STANDARD BENEFITS PACKAGE THAT IS FAR SMALLER THAN PRESIDENT CLINTON'S IN ORDER TO AVOID ENLARGING THE DEFICIT THE BUDGET OFFICE EXERCISE LOOKS AT TWO POSSIBLE BENEFIT PACKAGES ONE EQUIVALENT TO PRESIDENT CLINTON'S AND A SECOND MORE SPARTAN ALTERNATIVE DESIGNED TO MEET DEFICIT GOALS WHILE MR COOPER ALREADY HAS CHALLENGED THE BUDGET OFFICE'S METHODOLOGY PRELIMINARY NUMBERS INDICATE THE VALUE OF THE BENEFITS PACKAGE WOULD HAVE TO BE CUT BY AS MUCH AS 25 TO MEET THE BUDGET TARGET 9404280164 940428 DIVIDEND NEWS TRAVELERS INC TRAVELERS INC NEW YORK BOOSTED ITS QUARTERLY DIVIDEND 20 DECLARING A 15 CENTS PAYMENT MAY 27 TO SHARES OF RECORD MAY 9 THE INSURANCE AND FINANCIALSERVICES COMPANY PREVIOUSLY PAID 125 CENTS QUARTERLY 9404280163 940428 TO GO' HE TOLD THE RESTAURANT AND HE WASN'T REFERRING TO FOOD BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL RESTAURANT TAKEOUT MENUS ACCORDING TO A LANDMARK COURT RULING ARE DETRIMENTAL TO THE HEALTH AND SAFETY OF NEW YORKERS THE VICTOR IN THE NEW YORK COURT FIGHT UPPER WEST SIDE LANDLORD SAUL LAPIDUS HAS BEEN COMPLAINING FOR AT LEAST FIVE YEARS ABOUT THE MENUS LEFT IN HIS TWO BUILDINGS LAST FALL HE HIT UPON THE LEGAL STRATEGY THAT WOULD PROVE SUCCESSFUL IN COURT INSTEAD OF ACCUSING THE RESTAURATEURS OF LITTERING WHICH HAD GOTTEN HIM NOWHERE WITH CITY OFFICIALS HE DECIDED TO BILL THE OFFENDERS FOR THE COST OF PICKING UP THE MENUS AT HIS PROPERTIES WHEN ONE OF THE CITY'S MOST PROMINENT MENU DISTRIBUTORS EMPIRE SZECHUAN GOURMET INC REFUSED TO PAY MR LAPIDUS TOOK THE RESTAURANT TO COURT JUDGE KIBBIE PAYNE RECENTLY ORDERED EMPIRE TO PAY MR LAPIDUS 440 THE CLEANUP BILL FOR FOUR MONTHS OF MENUS THE JUDGE NOTED THAT THE DAILY ACCUMULATION OF MENUS POSED A SECURITY BREACH AND A SANITATION PROBLEM THE JUDGE REJECTED THE RESTAURANT'S CLAIMS THAT IT DIDN'T KNOW HOW THE MENUS ENDED UP IN MR LAPIDUS'S BUILDING JAMES SHAU EMPIRE SZECHUAN'S MANAGER DECLINED TO DISCUSS THE MENU CONTROVERSY ALTHOUGH HE SAID HIS RESTAURANT IS NOW PUMPING A LOT OF MONEY INTO MAILING LISTS AND NEWSPAPER ADS EMPIRE ISN'T APPEALING THE RULING MR LAPIDUS MEANWHILE HAS BECOME SOMETHING OF A HERO IN THE MENU MOVEMENT BRUCE BORDELON A LAWYER WHO DID PRO BONO WORK ADVISING THE LANDLORD PRAISED HIM FOR PERSEVERING IN THE FACE OF RELENTLESS MENUING A CONDITION MOST NEW YORKERS ARE RESIGNED TO ACCEPT NEW YORK IS A PLACE WHERE WE'VE LEARNED TO STEP OVER THE BOTTLES AND TO STEP OVER THE BODIES ON THE WAY TO OUR JOBS MR BORDELON SAID IF EVERY NEW YORKER DID SOMETHING THAT FACILITATED THE QUALITY OF LIFE WE WOULD ALL BE BETTER OFF MR LAPIDUS TAKES HIS HEROISM IN STRIDE I DID WHAT I HAD TO DO MR LAPIDUS AND OTHERS SAY THEY HAVE NOTICED A DECLINE IN THE VOLUME OF MENUS SINCE THE DECISION BUT HUGH KARRAKER A MEMBER OF A GROUP KNOWN AS THE MENU WARRIORS SAYS MENU ACTIVISTS CAN'T AFFORD TO BECOME COMPLACENT EVEN AFTER THE RULING HE SAYS MENUS FROM EMPIRE SZECHUAN WERE DROPPED OFF AT HIS APARTMENT BUILDING SAYS MR KARRAKER WE'RE TALKING OF HAVING A SITIN IN PROTEST AT THE RESTAURANT 9404280162 940428 RALSTON PURINA'S NET FELL 24 ON SALES GAIN IN FISCAL 2ND QUARTER ST LOUIS RALSTON PURINA CO SAID ITS FISCAL SECONDQUARTER EARNINGS FELL AS ITS EVEREADY BATTERY UNIT HAD DISAPPOINTING EUROPEAN RESULTS AND ITS CONTINENTAL BAKING GROUP HAD A LOSS FOR THE QUARTER ENDED MARCH 31 EARNINGS FELL 24 TO 629 MILLION FROM 826 MILLION ON A 4 SALES GAIN TO 199 BILLION FROM 191 BILLION THE LATEST EARNINGS INCLUDE A 95 MILLION EXTRAORDINARY LOSS ON EARLY RETIREMENT OF DEBT BECAUSE OF ITS GROUP STRUCTURE RALSTON DOESN'T REPORT PERSHARE EARNINGS RALSTON SAID ITS PUBLICLY TRADED RALSTON PURINA GROUP WHICH INCLUDES PET FOODS AND BATTERIES AS WELL AS SEVERAL BUSINESSES THAT WERE SPUN OFF MARCH 31 EARNED 654 MILLION OR 60 CENTS A SHARE COMPARED WITH 785 MILLION OR 71 CENTS A SHARE A YEAR EARLIER THE LATEST QUARTER INCLUDES A 79 MILLION DEBTRETIREMENT LOSS SALES ROSE 64 151 BILLION FROM 142 BILLION WALL STREET HAD BEEN EXPECTING PERSHARE EARNINGS OF AROUND 77 CENTS FOR THE GROUP ACCORDING TO ZACKS INVESTMENT RESEARCH EXCLUDING THE BUSINESSES SPUN OFF THE GROUP WOULD HAVE EARNED 509 MILLION OR 46 CENTS A SHARE THE COMPANY SAID BATTERY PRODUCTS' OPERATING EARNINGS SLID ON WHAT THE COMPANY CALLED SIGNIFICANT DECLINES IN EUROPE AND LOWER DOMESTIC ALKALINE VOLUME CONTINENTAL BAKING GROUP'S SURPRISING LOSS OF 5 MILLION OR 14 CENTS A SHARE COMPARED WITH EARNINGS OF 7 MILLION OR 18 CENTS A SHARE WAS ATTRIBUTED TO LOWER VOLUME UNFAVORABLE PRODUCT MIX IN BREAD AND DISAPPOINTING THRIFTSTORE SALES EARLY DEBT RETIREMENT ALSO CONTRIBUTED TO THE PUBLICLY TRADED UNIT'S LOSS SALES FELL 17 TO 4914 MILLION FROM 4992 MILLION RALCORP HOLDINGS INC THE RESULT OF THE SPINOFF OF RALSTON'S CEREAL CRACKERS AND SKI RESORT BUSINESSES REPORTED INITIAL EARNINGS AS IF IT HAD BEEN AN INDEPENDENT COMPANY EARNINGS TOTALED 237 MILLION OR 71 CENTS A SHARE COMPARED WITH 176 MILLION OR 51 CENTS A SHARE A YEAR EARLIER SALES ROSE 13 TO 2627 MILLION FROM 2315 MILLION RALCORP SAID ITS CRACKERANDCOOKIE BUSINESS WAS HURT BY THE RELOCATION OF A BAKERY 9404280161 940428 MUNIBOND DEALER SAYS SEC CAN'T CITE ANY PRIOR CASE TO JUSTIFY ITS NEW RULE BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE ALABAMA MUNICIPALBOND DEALER CHALLENGING THE SECURITIES AND EXCHANGE COMMISSION'S NEW PAY TO PLAY RULE ARGUED THAT THE AGENCY CAN'T CITE A SINGLE INSTANCE OF THE PROBLEM THAT THE RULE IS SUPPOSED TO PREVENT IN A PETITION FILED WITH THE SEC MONDAY BOND DEALER WILLIAM BLOUNT ASKED THAT THE RULE BE STAYED PENDING JUDICIAL REVIEW NOT ONCE DOES THE COMMISSION MENTION A VERIFIED INCIDENT OF THE PAYTOPLAY' PRACTICES IT SEEKS TO PREVENT MR BLOUNT SAID IN THE PETITION HE SAID THE AGENCY ALSO FAILED TO SHOW ANY HARM TO INVESTORS OR TO THE MUNI MARKET AS A WHOLE TO JUSTIFY THE RULE AS EXPECTED MR BLOUNT ALSO ASKED A FEDERAL APPEALS COURT HERE TO REVIEW THE SEC RULE WHICH HE CONTENDS IS UNCONSTITUTIONAL UNDER THE FIRST AMENDMENT THE RULE WHICH TOOK EFFECT MONDAY WOULD BAR MUNICIPALBOND DEALERS FROM DOING BUSINESS WITH A STATE OR LOCAL JURISDICTION WITHIN TWO YEARS OF MAKING A POLITICAL CONTRIBUTION TO AN OFFICIAL OF THE JURISDICTION MR BLOUNT'S STAY PETITION WHICH ARGUED THAT LIMITS ON POLITICAL SPEECH SHOULDN'T BE IMPOSED IF THE SEC CAN'T FIND EVIDENCE OF ACTUAL ABUSES AND HARM TO WARRANT THOSE LIMITS ATTACKED THE RULE AS AN UNPRECEDENTED RESTRICTION ON FREE SPEECH MR BLOUNT'S PETITION ALSO SAID A FAILURE TO STAY THE RULE WOULD SUBJECT MR BLOUNT WHO ALSO IS CHAIRMAN OF THE ALABAMA DEMOCRATIC PARTY TO IRREPARABLE HARM IF THE RULE ISN'T STAYED THE PETITION SAID MR BLOUNT WILL BE FORCED TO CANCEL NUMEROUS SCHEDULED SPEAKING ENGAGEMENTS IN THE COMING WEEKS AND WILL BE FORCED TO SUSPEND VIRTUALLY ALL OF THE POLITICAL ACTIVITY THAT HE HAS PLANNED FOR THE UPCOMING AND GENERAL ELECTIONS AT A MINIMUM THE PETITION SAID THE SEC SHOULD GRANT A PRELIMINARY STAY PENDING ITS REVIEW OF THE STAY APPLICATION IN ATTACKING THE RULE ON FREESPEECH GROUNDS THE PETITION SAID FOR THE FIRST TIME IN OUR NATION'S HISTORY AS FAR AS WE KNOW THE FEDERAL GOVERNMENT WILL HAVE FORCED INDIVIDUALS WHO ARE NOT FEDERAL EMPLOYEES TO SIT THROUGH AN ELECTION WITH LIMITATIONS ON WHAT THEY MAY SAY TO VOTERS AND POTENTIAL CONTRIBUTORS IT CONTENDED THAT EVEN THE SEC MUST RECOGNIZE THAT THE RULE IS CONSTITUTIONALLY VULNERABLE THE SEC INSISTS THAT THE RULE PASSES CONSTITUTIONAL MUSTER AND EARLIER THIS MONTH REJECTED THE OPTION OF A VOLUNTARY STAY PENDING A DECISION BY THE COURTS THE STAY PETITION FILED WITH THE SEC IS A PROCEDURAL STEP NEEDED TO CLEAR THE DECKS FOR CONSIDERATION OF THE CASE BY THE FEDERAL APPEALS COURT HERE THE SEC IS EXPECTED TO ACT FAIRLY QUICKLY ON MR BLOUNT'S STAY REQUEST AND APPEARS LIKELY TO REJECT IT MR BLOUNT WHOSE LAWSUIT IS UNDERTAKEN JOINTLY WITH HIS FIRM BLOUNT PARRIS & ROTON INC INITIALLY SUED IN A FEDERAL DISTRICT COURT IN ALABAMA LAST MONTH THAT SUIT WAS DISMISSED TO COMPLY WITH A REQUIREMENT THAT SUCH LAWSUITS BE FILED AT FEDERAL APPEALS COURTS 9404280160 940428 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 TELE DANMARK AS INITIAL US OFFERING OF ABOUT 259 MILLION CLASS B SHARES PRICED AT 23526 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO AND MERRILL LYNCH & CO THE JOINT GLOBAL COORDINATORS ARE GOLDMAN SACHS INTERNATIONAL LTD AND DEN DANSKE BANK THE SECURITIES WERE SOLD IN THE FORM OF AMERICAN DEPOSITARY SHARES EACH REPRESENTING HALF OF ONE CLASS B SHARE CREDIT LOCAL DE FRANCE FRENCH AGENCY 100 MILLION EUROPEAN CURRENCY UNITS OF 525 EUROBONDS DUE DEC 29 1999 AT ISSUE PRICE 9481 VIA SOCIETE GENERALE BONDS WILL TRADE INTERCHANGEABLY WITH 300 MILLION ECU OF IDENTICAL BONDS OUTSTANDING REOFFERED AT 93185 TO YIELD 6753 A SPREAD OF 10 BASIS POINTS ABOVE ECU FRENCH TREASURY OF MARCH 1999 FEES 1875 ELF AQUITAINE FRANCE 15 BILLION FRENCH FRANCS OF 7 EUROBONDS DUE MAY 20 2004 AT ISSUE PRICE 10093 VIA SOCIETE GENERALE REOFFERED AT 99305 TO YIELD 71 A MARGIN OF 34 BASIS POINTS ABOVE COMPARABLE FRENCH TREASURY FEES TWO INTERNATIONAL FINANCE CORP SUPRANATIONAL 10 BILLION YEN OF 4375 EUROBONDS DUE JUNE 11 1998 AT ISSUE PRICE 10295 VIA SANWA INTERNATIONAL PLC BONDS WILL TRADE INTERCHANGEABLY WITH 40 BILLION YEN OF IDENTICAL BONDS OUTSTANDING FEES UNDISCLOSED MITSUBISHI CORP FINANCE PLC JAPANESE PARENT 10 BILLION YEN OF 27 EUROBONDS DUE AUG 30 1995 AT ISSUE AND REOFFER PRICE 10007 VIA MERRILL LYNCH INTERNATIONAL LTD BONDS YIELD 264 ISSUED OFF EUROPEAN MEDIUMTERM NOTE PROGRAM KEEPWELL AGREEMENT WITH MITSUBISHI CORP FEES 025 NATIONAL AUSTRALIA BANK AUSTRALIA 75 MILLION AUSTRALIAN DOLLARS OF 8 EUROBONDS DUE JUNE 22 1999 AT ISSUE PRICE 101275 VIA HAMBROS BANK LTD BONDS YIELD 815 AT 994 COMANAGER'S BREAKEVEN PRICE FEES TWO LESS 0125 FOR LEAD MANAGER 9404280159 940428 INDUSTRY FOCUS MANAGED CARE THRIVES AS SMALLER INSURERS RENT' HMOS COSTCONSCIOUS EMPLOYERS ARE FORCING CHANGES AS WASHINGTON DELIBERATES BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL SMALLER HEALTH INSURERS ARE FOLLOWING BIG COMPANIES INTO MANAGED CARE AND THAT MEANS MANY EMPLOYEES WHO AREN'T IN HEALTHMAINTENANCE ORGANIZATIONS MAY SOON BE EVEN AS INSURANCE TRADE GROUPS GROUSE THAT PRESIDENT CLINTON'S HEALTHREFORM PLAN LIMITS CONSUMER CHOICE OF MEDICAL PROVIDERS INSURERS ARE INCREASINGLY UNVEILING OFFERINGS THAT COULD DO JUST THAT THE BIG FIVE INSURERS BEGAN FORMING THEIR OWN MANAGEDCARE NETWORKS AS LONG AS TWO DECADES AGO BUT RECENTLY ONE SMALLER CONCERN AFTER ANOTHER HAS ANNOUNCED SOME KIND OF JOINT VENTURE WITH AN ESTABLISHED MANAGEDCARE NETWORK IT'S A STRATEGY THAT GLORIA VOGEL AN INSURANCE ANALYST WITH LEHMAN BROTHERS CALLS RENT AN HMO EMPLOYERS ARE DEMANDING MANAGEDCARE ALTERNATIVES AS A WAY TO KEEP COSTS DOWN THE FUTURE IS MANAGED CARE SAYS MS VOGEL WHATEVER HAPPENS TO MR CLINTON'S SLOWMOVING HEALTH PLAN OR ITS ALTERNATIVES WE'RE ALREADY SORT OF THERE SHE SAYS ANALYSTS CONSIDER SUCH PARTNERSHIPS A MATTER OF SURVIVAL TO SMALLER INSURERS THAT WANT TO STAY IN THE HEALTH BUSINESS IN DENSELY POPULATED PARTS OF THE NATION WHERE NETWORKS MAKE ECONOMIC SENSE THE PHRASE MANAGED CARE' HAS REALLY TAKEN ON A LIFE OF ITS OWN SAYS STEPHEN PARAHUS A CONSULTANT WITH KWASHA LIPTON A FORT LEE NJ EMPLOYEEBENEFITS CONSULTING FIRM MR PARAHUS IS CURRENTLY LOOKING OVER MASS MUTUAL'S NEW PLAN FOR A BIG BEAUTYPRODUCTS COMPANY THAT WANTS TO ADD MANAGED CARE TO ITS BENEFITS LINEUP ALREADY SET UP TO CATER TO MANY OF THESE EMPLOYERS ARE FASTGROWING HMOS AND THE NATION'S FIVE BIGGEST HEALTH INSURERS AETNA LIFE & CASUALTY CO CIGNA CORP METROPOLITAN LIFE INSURANCE CO PRUDENTIAL INSURANCE CO OF AMERICA AND TRAVELERS INC MANY SMALLER INSURERS INITIALLY RESISTED THE MOVE AWAY FROM THE PROFITABLE FEEFORSERVICE BUSINESS UNDER WHICH THEY PAY DOCTORS AND HOSPITALS FEES AS SERVICES ARE PERFORMED THEY WERE PUT OFF BY THE HIGH COST OF FORMING NETWORKS AND LACKED A CRITICAL MASS OF CUSTOMERS TO DEMAND STEEP PROVIDER DISCOUNTS TRAVELERS AND MET LIFE ARE NOW TRYING TO AGREE ON WAYS TO COMBINE THEIR HEALTHCARE OPERATIONS THE CLOUT FACTOR HELPS EXPLAIN WHY THE SMALLER INSURERS ARE SCRAMBLING TO PAIR WITH ESTABLISHED HMOS KENNETH ABRAMOWITZ AN ANALYST WITH SANFORD C BERNSTEIN & CO SAYS THESE COMPANIES REALIZE THEY HAVE TO CHANGE BUT WOULD RATHER TAP INTO THE INVESTMENTS OTHER COMPANIES HAVE MADE THAN MAKE THEIR OWN BELATED INVESTMENTS HE ADDS THAT IF THEY PICK GOOD PARTNERS MOST WILL BE SUCCESSFUL ALTHOUGH SOME DEALS MAY BE LESS DESIRABLE THAN THEY'D LIKE ALL TOLD MORE THAN 500 CONVENTIONAL INSURANCE COMPANIES SELL HEALTH INSURANCE COMPETING WITH SEVERAL HUNDRED HMO COMPANIES THEY ALTOGETHER SHARE ANNUAL PREMIUMS OF 310 BILLION ABOUT 16 OF THE BUSINESS IS IN THE HANDS OF THE HMO COMPANIES 25 BELONGS TO THE TOP FIVE INSURERS 25 IS HANDLED BY ABOUT 70 BLUE CROSS AND BLUE SHIELD GROUPS AND THE REMAINDER GOES TO OTHER INSURERS MR ABRAMOWITZ ESTIMATES THAT ABOUT A FIFTH OF THE SMALLER CARRIERS WILL TRY TO MAKE THE TRANSITION TO MANAGED CARE BY TEAMING WITH ESTABLISHED PLAYERS CALLING THE RECENT FLURRY OF ALLIANCES THE START OF A TREND THE OTHER CARRIERS HE SAYS ARE TOO SMALL AND HAVE TOO LITTLE EXPERTISE TO MOVE INTO MANAGED CARE THEY WILL TRY TO HANG IN THERE AS LONG AS POSSIBLE WITH FEEFORSERVICE BUT WILL ULTIMATELY DROP OUT PM GROUP WITH 11 BILLION IN GROUPMEDICAL PREMIUM AND PREMIUM EQUIVALENTS IS BIG ENOUGH TO MAKE THE TRANSITION AND ALREADY OPERATES SOME MANAGEDCARE PROGRAMS ANALYSTS SAY BUT THE SWITCH ISN'T BEING UNDERTAKEN WITHOUT CORPORATE SOULSEARCHING IF YOU DON'T CANNIBALIZE YOUR OWN PRODUCT LINE SOMEONE ELSE WILL AND BETTER YOU DO IT IN AN ORGANIZED MANNER SAYS PM GROUP SENIOR VICE PRESIDENT MICHAEL BERUMEN IN GENERAL THE NEW OFFERINGS AIM TO SATISFY EMPLOYERS' APPETITE FOR INCREASINGLY STIFFER FORMS OF MANAGED CARE FORMS LIKE HMOS PROMISE GREATER SAVINGS BECAUSE THEY CONTROL SUCH THINGS AS PATIENTS' ACCESS TO SPECIALISTS NONETHELESS SOME EMPLOYERS HAVE HERETOFORE AVOIDED THEM BECAUSE THEIR EMPLOYEES DON'T LIKE THEIR CHOICES LIMITED THE NEW OFFERINGS OVERCOME THIS PROBLEM BY GIVING EMPLOYEES THE RIGHT TO OPT OUT OF THE NETWORKS BUT AT A PRICE THAT'S EXPECTED TO DISSUADE MANY SIGNIFICANTLY HIGHER COPAYMENTS AND DEDUCTIBLES MICHELLE MOLLOY MANAGER OF HUMAN RESOURCES FOR SCIENCE PUBLISHER MARCEL DEKKER INC WAS THRILLED WHEN MASS MUTUAL THE COMPANY'S CONVENTIONAL HEALTH INSURER INFORMED HER OF ITS OPTOUT PLAN WITH GROUP HEALTH MARCEL DEKKER HAD WORRIED THAT IT COULD DAMAGE MORALE BY PUSHING EMPLOYEES INTO STIFF FORMS OF MANAGED CARE YET THE ALTERNATIVE SEEMED TO BE A DOUBLEDIGIT INCREASE IN FEEFORSERVICE PREMIUMS BY ENROLLING 130 EMPLOYEES IN MASS MUTUAL'S NEW PROGRAM THE COMPANY EXPECTS THE WORKERS' INSURANCE COSTS TO NOMINALLY DECREASE THIS YEAR INSURERS LOOKING TO SELL BLOCKS OF CONVENTIONAL FEEFORSERVICE BUSINESS NOWADAYS FIND BUYERS SCARCE INVESTMENT BANKERS SAY AT BEST THE BANKERS SAY OTHER COMPANIES WILL ASSUME THE BUSINESS WITHOUT PAYING ANYTHING UPFRONT AND WILL PAY THE ORIGINAL INSURER ROYALTIES AS THE BUSINESS RENEWS LIBERTY LIFE ASSURANCE CO OF BOSTON A UNIT OF LIBERTY MUTUAL INSURANCE GROUP IS WORKING OUT AN AGREEMENT NOW TO TURN OVER 500 MILLION IN FEEFORSERVICE BUSINESS TO TRAVELERS INC AND CONSOLIDATED GROUP OF FRAMINGHAM MASS MARYANN SULLIVAN A LIBERTY EXECUTIVE VICE PRESIDENT SAYS STAYING IN THE HEALTHINSURANCE BUSINESS WOULD HAVE TAKEN A FAIR AMOUNT OF RESOURCES WHILE TURMOIL IN THE MARKETPLACE MAKES IT DIFFICULT TO KNOW HOW TO SPEND THAT MONEY STILL IN FOCUSING MORE ON WORKER'S COMPENSATION AND DISABILITY INSURANCE LIBERTY ISN'T AVOIDING A CHANGING MARKETPLACE THE INSURER ANNOUNCED AN ALLIANCE IN JANUARY WITH PACIFICARE HEALTH SYSTEMS INC A MANAGEDCARE COMPANY TO OFFER SPECIAL WORKERSCOMP PROGRAMS IN CALIFORNIA AND ON APRIL 25 ADDED A SIMILAR VENTURE WITH BLUE CROSS & BLUE SHIELD OF MASSACHUSETTS 9404280158 940428 TECHNOLOGY & HEALTH HITACHI TO USE SOME IBM CHIPS IN ITS COMPUTERS BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO HITACHI LTD SAID IT WILL BEGIN USING IN ITS COMPUTERS SEVERAL MICROPROCESSORS FROM INTERNATIONAL BUSINESS MACHINES CORP GIVING A BOOST TO BIG BLUE AND PAVING THE WAY FOR CLOSER COOPERATION BETWEEN TWO FIERCELY COMPETITIVE COMPUTER CONCERNS HITACHI PLANS TO USE AN IBM MAINFRAME MICROPROCESSOR THE SOCALLED CMOS CHIP IN FUTURE GENERATIONS OF ITS OWN MAINFRAMES HITACHI WILL ALSO BUY IBM'S NEW POWERPC CHIP WHICH THE COMPANY DEVELOPED IN COLLABORATION WITH MOTOROLA INC AND APPLE COMPUTER INC FOR USE IN A DIFFERENT LINE OF MAINFRAMES HITACHI SAID IT MAY USE THE POWERPC IN PERSONAL COMPUTERS AND WORKSTATIONS ALTHOUGH IT HASN'T YET DECIDED ANALYSTS SAID BOTH SIDES STOOD TO GAIN FROM THE AGREEMENT AS HITACHI GETS A TECHNOLOGICAL BOOST WHILE ARMONK NYBASED IBM WILL REAP SALES AND A POTENTIALLY BIG NEW CUSTOMER FOR THE POWERPC THIS GETS HITACHI TO MARKET A LOT FASTER AND ENSURES THEIR COMPATIBILITY WITH IBM SAID STEVEN MYERS AN ANALYST WITH JARDINE FLEMING SECURITIES LTD IN TOKYO JOHN THOMPSON SENIOR VICE PRESIDENT AND GROUP EXECUTIVE FOR IBM'S LARGE SYSTEMS AND SERVERS SAID IN AN INTERVIEW THAT HE WAS EXCITED ABOUT THE AGREEMENT BECAUSE OF HITACHI'S VAST PRODUCT LINE DISCUSSIONS ARE CONTINUING ABOUT THE POSSIBILITY OF EXPANDING THE RELATIONSHIP TO INCLUDE CHIPS THAT COULD BE EMBEDDED TO RUN OTHER MACHINES AT THE SAME TIME HOWEVER THE AGREEMENT AMOUNTS TO A FRANK ADMISSION BY HITACHI THAT IT HAS BEEN UNABLE TO KEEP UP WITH ITS US COMPETITORS IN DESIGNING AND MANUFACTURING MICROPROCESSORS WHICH ARE THE CHIPS THAT CONTROL THE CENTRAL FUNCTIONS OF COMPUTERS BY BUYING IBM CHIPS HITACHI WILL ALSO HAVE AN OPPORTUNITY TO CUT ITS RESEARCH AND DEVELOPMENT COSTS A SPOKESMAN SAID ON THAT SCORE HITACHI IS HARDLY ALONE THIS WEEK FUJITSU LTD AGREED WITH SUN MICROSYSTEMS INC OF MOUNTAIN VIEW CALIF TO MESH THE TWO COMPANIES' DEVELOPMENT OF SUN'S SPARC MICROPROCESSORS PARTLY IN ORDER TO REDUCE DEVELOPMENT COSTS IBM'S DECISION TO SHARE ITS MAINFRAME TECHNOLOGY WITH HITACHI IS ALSO RICH WITH HISTORICAL IRONY AS IT MARKS AN IMPORTANT WATERSHED IN IBM'S RELATIONS WITH ONE OF ITS TOUGHEST COMPETITORS HITACHI WAS LONG NURTURED BY THE JAPANESE GOVERNMENT AS ONE OF SEVERAL HOMEGROWN IBMKILLERS AND IN THE PROCESS OCCASIONALLY GREW TOO AGGRESSIVE IN 1982 IBM COOPERATED WITH THE US FEDERAL BUREAU OF INVESTIGATION IN A STING OPERATION THAT CAUGHT SEVERAL HITACHI EMPLOYEES IN ATTEMPTS TO STEAL IBM'S TRADE SECRETS BUT RELATIONS HAVE GROWN STEADILY CLOSER SINCE THEN HITACHI NOW ALSO BUYS PERSONAL COMPUTERS FROM IBM AND RESELLS THEM UNDER ITS OWN LABEL 9404280157 940428 SPRING ART SEASON DEPICTS BEST AUCTIONS IN YEARS BUT BOUNTY COMES AT BAD TIME BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK'S SPRING ART SEASON FEATURES THE BEST AND BIGGEST AUCTIONS IN YEARS BUT SOME TREMORS ARE SHAKING THE ART MARKET'S NEWFOUND CONFIDENCE THE MAY AUCTIONS ARE THE CALLYOURBLUFF SALES FOR THE TWO BIG NEW YORK AUCTION HOUSES WHICH IN RECENT YEARS HAVE BEEN SELLING MOSTLY SECONDTIER PROPERTY AND ACHIEVING SOMETIMES THIRDRATE RESULTS WE'VE ALWAYS SAID IF WE HAD GOOD THINGS TO SELL THEY WOULD SELL WELL NOW WE'LL SEE SAYS DIANA D BROOKS PRESIDENT OF SOTHEBY'S HOLDINGS INC THE QUESTION IS HOW MANY 4 MILLION PICTURES CAN THIS MARKET ABSORB THAT WASN'T THE QUESTION A SCANT TWO YEARS AGO AT THE BOTTOM OF THE ART MARKET'S SEVERE RECESSION WHEN PICTURES AT AUCTION GOOD ENOUGH TO SUGGEST A 4 MILLION BID WERE SCARCE NOW SOTHEBY'S AND RIVAL AUCTIONEER CHRISTIE'S INTERNATIONAL PLC ARE PUTTING ABOUT A DOZEN OF THEM ON THE BLOCK IN TWO WEEKS THEY ARE THE HIGHLIGHTS OF SALES FEATURING HUNDREDS OF ETCHINGS WATERCOLORS PAINTINGS AND SCULPTURE WITH SUGGESTED BIDS OF 2000 TO 8 MILLION THE ACTION ISN'T ALL IN THE SALESROOMS THE ARTDEALER COMMUNITY IS MAKING ITS MOST AGGRESSIVE GRAB FOR MARKET SHARE IN ALMOST A DECADE WITH A HOST OF SPECIAL EVENTS AND FIVE HUGE ART FAIRS IN NEW YORK AND CHICAGO DURING THE NEXT THREE WEEKS THE SPRING ART SEASON THAT BEGINS TUESDAY IS AN ANNUAL GOSSIPY CELEBRITYPACKED TWO WEEKS DURING WHICH THE WALL HANGINGS OF THE RICH AND FAMOUS CHANGE HANDS TO THE TUNE OF MILLIONS BUT BEYOND THAT THESE AUCTIONS ANOINT THE MOMENT'S FAVORED ARTISTS ESTABLISH GLOBAL BUYING TRENDS AND SET MOOD AND PRICES FOR MONTHS TO COME TRICKLING DOWN TO INFLUENCE MARKETS FOR POSTERS JADE AND PEZ DISPENSERS TOGETHER THE AUCTION HOUSES EXPECT TO HAMMER DOWN IN 10 DAYS OF SALES ABOUT 800 ARTWORKS VALUED AT 260 MILLION TO 350 MILLION THAT'S ABOUT 75 MILLION MORE THAN THEY TRIED TO SELL AT SIMILAR FALL SALES JUST SIX MONTHS AGO WOULDBE COLLECTORS ALREADY HAVE MISSED THE BOTTOMFISHING BARGAINS OF 1991 AND EARLY 1992 BUT IT WAS RARE THAT GREAT PIECES CAME ON THE AUCTION BLOCK BACK THEN ANYWAY THIS AUCTION SEASON OFFERS A GOOD COMBINATION OF PRICES THAT ARE DEALS AT LEAST COMPARED WITH RECORD 19891990 LEVELS AND PAINTINGS THAT ALSO ARE NOTABLE HISTORICALLY SAY DEALERS COLLECTORS AND AUCTION EXPERTS THE PRESALE ESTIMATES THE ROUGH PRICE GUIDES FOR COLLECTORS ARE EXACTLY WHERE THEY WOULD HAVE BEEN LAST YEAR SAYS MICHAEL FINDLAY CHRISTIE'S SENIOR DIRECTOR OF IMPRESSIONIST AND MODERN ART WE HAVE NOT ASSUMED A MARKET MOVE AND AREN'T TRYING TO FORCE ONE WITH HIGHER SUGGESTED BIDS FOR EXAMPLE A BONNARD PAINTING THAT SOLD FROM THE ESTATE OF ACTRESS GRETA GARBO IN 1990 FOR 32 MILLION IS BACK WITH A SUGGESTED PRICE OF HALF AS MUCH MONET'S ANTIBES THAT SOLD AT THE BOTTOM OF THE ART MARKET IN 1991 FOR 19 MILLION IS BACK CARRYING ABOUT THE SAME PRICE WHAT'S FOR SALE FORGET THOSE ONCEHOT '80S ARTISTS FEW CONTEMPORARY ARTISTS WITHOUT A QUARTERCENTURY TRACK RECORD MADE IT TO THESE AUCTIONS THESE SALES ARE PACKED BY GOOD WORKS BY CULT ARTISTS SUCH AS SEVERINI KLEE BEUYS KLIMT BECAUSE OF THE PASSION OF THESE ARTISTS' COLLECTORS OR THE SCARCITY OF THEIR OUTPUT THE WORKS OF THESE ARTISTS DIDN'T PLUNGE IN PRICE DURING THE ARTMARKET RECESSION BUT NOTICEABLY MISSING FROM THE SALES ARE MANY WARHOL WORKS HIS MARKET IS IN LIMBO IN THE WAKE OF NEWS LAST WEEK THAT THE NEW YORK STATE ATTORNEY GENERAL IS PROBING FINANCIAL MANAGEMENT OF THE POPART MASTER'S HUGE ESTATE AND CHARITABLE FOUNDATION BUT COLLECTORS AND EVEN DEALERS RIVALS TO THE AUCTION HOUSES WAX RHAPSODIC ABOUT THE MARBLE BRANCUSI SCULPTURE A DYNAMIC JOHNS FROM THE COLLECTION OF MAGAZINE PUBLISHER PETER BRANT A CRISP UNRETOUCHED MONDRIAN A VIVID ELECTRIC POLLOCK A POIGNANT MODIGLIANI AND SOME OF THE BETTER CALDER SCULPTURES EVER DONE SOTHEBY'S AND CHRISTIE'S WON THE RIGHT TO SELL ALL OF THIS PROPERTY WITH A BLITZ OF HIGHPOWERED INSTITUTIONAL GROVELING POTENTIAL SELLERS WERE CATERED TO AN UNPRECEDENTED DEGREE WITH INTERNATIONAL EXHIBITIONS OF THEIR COLLECTIONS SPECIAL THIRDPARTY FINANCIAL GUARANTEES THAT SHAVE THE RISKS OF SELLING AT AUCTION AND VANITY AUCTION CATALOGS CHRISTIE'S FEATURES A FULLPAGE PHOTOGRAPH OF COLLECTOR NEIL MCCONNELL IN ITS IMPRESSIONISTPAINTINGS CATALOG SANDWICHED IN BETWEEN THE RODIN AND CEZANNE ITS ACCOMPANYING BIOGRAPHY OF THE FINANCIER READS LIKE JP MORGAN'S AND CHRISTIE'S GRANTED BUSINESSMAN MESHULAM RIKLIS AND THE ESTATE OF SWITZERLANDBASED COLLECTOR JACQUES KOERFER SEPARATE CATALOGS OF THEIR COLLECTIONS SOTHEBY'S WENT EVEN FURTHER PRINTING FOR THE HEIRS OF FORMER CENTRAL INTELLIGENCE AGENCY DEPUTY DIRECTOR H GATES LLOYD A MUSEUMQUALITY COFFEETABLE BOOK BEREFT OF TAWDRY PRICE ESTIMATES THAT SHOWCASES THE FAMILY'S MILLIONDOLLAR ARTWORKS BUT ALL OF THIS BOUNTY COMES AT A BAD TIME THE LOS ANGELES EARTHQUAKE ON TOP OF RECESSION IN THE CALIFORNIA DEFENSE INDUSTRY IS HAVING A HUGE NEGATIVE IMPACT ON THE WEST COAST CONTEMPORARYART MARKET DEALERS SAY EVEN THE REDECORATING BOOM ISN'T SPURRING SALES DEALERS ARE WORRIED BECAUSE THE WEALTHY HOLLYWOOD COMMUNITY IS RESPONSIBLE FOR A DISPROPORTIONATE AMOUNT OF ARTMARKET BUSINESS HOLLYWOOD SELLERS AT THESE AUCTIONS INCLUDE BARBARA STREISAND JULIE ANDREWS AND HER HUSBAND DIRECTOR BLAKE EDWARDS MR RIKLIS WHO IS IN THE MIDST OF A DIVORCE FROM ACTRESS PIA ZADORA AND THE ESTATES OF VINCENT PRICE AND AGENT SWIFTY LAZAR MEANWHILE AS THE STOCK MARKET'S GONE DOWN SOME OF THE PLAYERS FEEL A LITTLE MORE CAUTIOUS YOU DON'T RAISE YOUR HAND TO BID WHEN YOU THINK THINGS AREN'T GOING TO BE AS GOOD SAYS SCOTT BLACK PRESIDENT OF BOSTON MONEY MANAGEMENT FIRM DELPHI MANAGEMENT AND A VORACIOUS COLLECTOR WHO LAST YEAR BOUGHT A DEGAS A MAGRITTE AND A PICASSO ALL NOW ON LOAN TO MUSEUMS MOREOVER THE DIFFERENCE BETWEEN THE TAX BITE UNDER THE BUSH AND CLINTON ADMINISTRATIONS HE NOTES IS A PAINTING A YEAR DAVID TYLER PRESIDENT OF CHRISTIE'S USA THE LONDON COMPANY'S US UNIT SAYS THE RISE IN INTEREST RATES AND DECLINE IN THE STOCK MARKET PLUS BIG LOSSES BY SOME HEDGE FUNDS MAKES A GREAT DEAL OF DIFFERENCE TO SOME PEOPLE AT THE TOP END OF THE MARKET BUT THOUSANDS OF WALL STREETERS GOT VERY VERY LARGE BONUSES EARLIER THIS YEAR THOSE PEOPLE HAVE GOT MONEY IN THEIR POCKETS AND ARE WONDERING WHAT TO DO WITH IT NEW YORK ART ADVISER THEA WESTREICH SAYS THE CORRECTIONS IN THE ART MARKET HAVE TAKEN PLACE AND THE PERCEPTION IS THAT THE MARKET HAS SETTLED THAT COMBINED WITH THE AMOUNT OF GOOD MATERIAL FOR SALE GIVES PEOPLE A SENSE OF BUOYANCY CERTAINLY THE MOOD OF THE ART COMMUNITY IS SUBSTANTIALLY BETTER SAYS ANDRE EMMERICH PRESIDENT OF THE ART DEALERS ASSOCIATION OF AMERICA AT THE BOARD MEETINGS OF THE ASSOCIATION THERE ARE FEWER GALLOWS JOKES THE MARKET'S BACK TO NORMAL BUT NORMAL MR EMMERICH ADDS IS TOUGH DEALERS AND AUCTIONHOUSE OFFICIALS TELL OF HAVING TO DO AN ENORMOUS AMOUNT OF RESEARCH HANDHOLDING AND CAJOLING TO CLOSE A DEAL FOR TOP DEALERS THAT IS RESULTING IN A HARDWON RECOVERY BUT THERE ARE SCORES OF NEW OR MIDDLEMARKET GALLERIES FOR WHICH THAT RECOVERY HAS NEVER AND MAY NEVER HAPPEN SO DEALER GROUPS ARE ATTEMPTING TO BROADEN THE AUCTION BUYING SPREE BY TACKING ON HUGE ART FAIRS OR GALLERY CRAWLS TO BOTH ENDS OF THE SALES SEASON THE INTERNATIONAL ART FAIR FEATURING 60 DEALERS OPENED LAST NIGHT AT NEW YORK'S PIER 92 TONIGHT THE GALLERIES LINING TONY MADISON AVENUE ARE HOLDING OPEN HOUSES SOHO GALLERIES FOLLOW SATURDAY THIS WEEKEND A GROUP OF CUTTINGEDGE GALLERIES ARE RENTING ROOMS AT THE GRAMERCY PARK HOTEL TO SHOW THEIR WARES AND ON MAY 13 THE INTERNATIONAL FINE ART FAIR FOCUSING ON WORKS FROM 15001900 OPENS AT THE SEVENTH REGIMENT ARMORY ON PARK AVENUE 9404280156 940428 MARKETING & MEDIA MARKETSCAN BABY BOOMERS' BUNIONS BY KATHLEEN DEVENY THE AGING US POPULATION AND THE PREVALENCE OF UNCOMFORTABLE SHOES ARE FUELING SALES OF PRODUCTS OFFERING RELIEF TO ACHY FEET SCHERINGPLOUGH CORP A LEADING FOOTCARE COMPANY HAS STEPPED UP MARKETING OF ITS DR SCHOLL'S BRAND TO TRY TO REACH THE GROWING NUMBER OF MIDDLEAGED BABY BOOMERS THE COMPANY UPDATED THE BRAND LAST YEAR AND ROLLED OUT 18 NEW PRODUCTS THIS SPRING THE COMPANY IS SET TO ADD ANOTHER 22 PRODUCTS TO ITS LINE AMONG THE INNOVATIONS ADVANCED PAIN RELIEF CORN CUSHIONS TINY TRANSPARENT CUSHIONS FOR WOMEN WHO HAVE SPENT YEARS WEARING POINTY HIGHHEEL SHOES THE COMPANY'S INITIAL EFFORTS APPEAR TO HAVE PAID OFF TOTAL INDUSTRY SALES OF FOOTCARE PRODUCTS IN SUPERMARKETS AND DRUGSTORES INCREASED 14 TO 3814 MILLION DURING THE 12 MONTHS ENDED FEB 28 ACCORDING TO THE TOWNEOLLER SUBSIDIARY OF INFORMATION RESOURCES INC SALES OF SCHERINGPLOUGH'S DR SCHOLL'S FOOTCARE PRODUCTS AND ITS LOTRIMIN AF ATHLETE'S FOOT TREATMENTS WHICH TOGETHER DOMINATE THE FOOTCARE CATEGORY WITH A 67 SHARE ALSO GREW 14 YET THE COMPANY CONTENDS THERE IS STILL PLENTY OF ROOM FOR GROWTH NEARLY 50 OF PEOPLE WHO SUFFER FROM FOOT PAIN DON'T SEEK RELIEF ACCORDING TO FRED FRITZ SENIOR VICE PRESIDENT OF FOOTCARE MARKETING AND SALES FOR SCHERINGPLOUGH CHANGING DEMOGRAPHICS ARE ALSO HELPING THE OLDER YOU GET THE MORE FOOT PROBLEMS YOU HAVE SAYS MR FRITZ WHO ADDS THAT MOST SHOE BUYERS CHOOSE FASHION OVER COMFORT UNCOMFORTABLE SHOES ARE A KEY DRIVER FOR GROWTH THIS YEAR SCHERINGPLOUGH IS FOCUSING ON NEW PRODUCTS FOR CORNS AND BUNION SUFFERERS NEW ATHLETE'SFOOT TREATMENTS AND AN UPSCALE LINE OF PRODUCTS MEANT TO PAMPER THE FEET INCLUDING A REVITALIZING FOOT BATH AND FOOT MASSAGING CREAM SCHERINGPLOUGH SAYS IT WILL SPEND 35 MILLION TO PROMOTE ITS FOOTCARE PRODUCTS THIS YEAR AN INCREASE OF 25 FROM 1993 9404280155 940428 ECONOMY BUDGET OUTLOOK MAY LEAD STATES TO EASE TAXES GOVERNORS ARE PROPOSING CUTS AS EXPECTATIONS IMPROVE SURVEY FINDS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE BRIGHTEST STATE BUDGET OUTLOOK IN SEVERAL YEARS IS PROMPTING A NUMBER OF GOVERNORS TO CALL FOR MODEST TAX CUTS WITH STATE REVENUES REBOUNDING FROM RECESSION LEVELS MANY GOVERNORS ARE PROPOSING TAX REDUCTIONS FOR FISCAL 1995 PRIMARILY BY REDUCING PERSONAL INCOME AND SALES TAXES SAID A NEW FISCAL SURVEY OF THE STATES CONDUCTED BY THE NATIONAL GOVERNORS' ASSOCIATION AND NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS THE SURVEY CALLS THE OUTLOOK FOR STATE BUDGETS THE MOST FAVORABLE SINCE THE START OF THE NATIONAL RECESSION IN 1990 THE MAIN REASON FOR THIS SAID RAY SCHEPPACH EXECUTIVE DIRECTOR OF THE GOVERNORS ASSOCIATION IS FASTER GROWTH IN THE NATIONAL ECONOMY THINGS ARE BETTER HE SAID STILL THE SURVEY NOTED 10 STATES ARE TIGHTENING THEIR BUDGETS FOR THE 1994 FISCAL YEAR IN 1992 BY CONTRAST 35 STATES HAD TO REVISIT ENACTED BUDGETS TO FIX SHORTFALLS THE SURVEY SAID 15 STATES ARE PROPOSING PERSONALINCOME TAX CUTS AND THAT SEVERAL OTHERS ARE CONSIDERING SALES AND CORPORATE TAX REDUCTIONS THE NET STATE TAX CUT NATIONWIDE WAS ESTIMATED AT 13 BILLION THE STUDY SAID THE FISCAL 1995 BUDGETS PROPOSED BY THE NATION'S GOVERNORS ASSUME AN INCREASE OF 5 IN ESTIMATED TAX COLLECTIONS DURING FISCAL 1994 THE SURVEY SAID SIX STATES ARE PROPOSING TO BOOST TOBACCO TAXES IT CITED AN ESTIMATE BY THE FEDERATION OF TAX ADMINISTRATORS THAT THE HEFTY INCREASE IN THE FEDERAL CIGARETTE TAX BEING PROPOSED IN CONNECTION WITH HEALTHCARE REFORM WOULD COST THE STATES 878 MILLION IN LOST STATE TAX COLLECTIONS BY CUTTING CIGARETTE SALES THE SURVEY FOUND STATES PROJECTING BUDGET STABILITY BUT SAID UNCERTAINTIES ABOUT MATTERS SUCH AS HEALTHCARE REFORM CLOUD THE FISCAL PICTURE SOMEWHAT IT SAID SPENDING ON THE MEDICAID PROGRAM OF HEALTH CARE FOR THE POOR IS GROWING AT A MUCH SLOWER RATE THAN IN PREVIOUS YEARS BUT STILL IS PROJECTED TO GROW BY 82 IN 1995 THE SURVEY SAID THE IMPROVED NATIONAL ECONOMY IS ENABLING STATES TO USE INCREASES FROM EXISTING REVENUE SOURCES TO FUND MODEST PROGRAM INCREASES SPENDING INITIATIVES CENTER AROUND CRIME PREVENTION IT SAID WITH A NUMBER OF STATES TARGETING VIOLENT JUVENILE OFFENDERS PAY RAISES FOR STATE EMPLOYEES AVERAGE 4 IN FISCAL 1995 BUDGET PROPOSALS ACCORDING TO THE SURVEY THE SURVEY SAID YEAREND BALANCES THE FUNDS STATES HAVE IN RESERVE THAT ARE AVAILABLE FOR UNFORESEEN CIRCUMSTANCES ARE ESTIMATED AT 81 BILLION FOR FISCAL 1995 OR 24 OF EXPENDITURES MR SCHEPPACH SAID THIS IS STILL WELL BELOW THE PERCENTAGE PREFERRED BY WALL STREET ANALYSTS WHO RATE STATE BOND ISSUES HE ALSO CITED GROWING CONCERN NATIONWIDE ABOUT THE USE OF THE PROPERTY TAX TO FINANCE EDUCATION EXPENSES IN TERMS OF REGIONAL PERFORMANCE THE SURVEY FOUND CALIFORNIA SOUTHERN NEW ENGLAND AND THE MIDATLANTIC STATES STILL LAGGING BEHIND THE REST OF THE NATION IN THEIR RATE OF ECONOMIC RECOVERY WHILE STATES IN THE PLAINS ROCKY MOUNTAIN AND SOUTHEAST REGIONS ARE EXPERIENCING FASTER ECONOMIC GROWTH 9404280154 940428 TECHNOLOGY GENENTECH COFOUNDER GRANTS RIGHTS TO PATENTS SAN FRANCISCO GENENTECH INC COFOUNDER HERBERT BOYER DONATED THE RIGHTS TO HIS GENESPLICING PATENTS TO THE UNIVERSITY OF CALIFORNIA SAN FRANCISCO UNIVERSITY OFFICIALS SAID THE DONATION VALUED AT ABOUT 24 MILLION IS THE LARGEST PERSONAL GIFT EVER MADE TO CALIFORNIA'S UNIVERSITY SYSTEM THE GIFT WILL BE USED TO PROMOTE BIOMEDICAL RESEARCH AS A UC SAN FRANCISCO RESEARCHER IN 1973 DR BOYER AND STANFORD UNIVERSITY PROFESSOR STANLEY COHEN DEVELOPED THE TECHNIQUE FOR TRANSPLANTING GENES BETWEEN LIVING CELLS THEIR WORK FORMED THE SCIENTIFIC BASIS FOR GENETICALLY ENGINEERED PRODUCTS SUCH AS THE HUMANGROWTH HORMONE INTERFERON AND DRUGS USED TO TREAT MULTIPLE SCLEROSIS AND HEART ATTACKS IN 1976 DR BOYER HELPED FOUND GENENTECH HE IS STILL A BOARD MEMBER DR BOYER 57 YEARS OLD HAD PREVIOUSLY DEEDED HIS RIGHTS TO THE GENESPLICING PATENTS TO UC SAN FRANCISCO THROUGH 1997 THE NEW GIFT ASSIGNS HIS SHARE OF THE PATENT RIGHTS PERMANENTLY TO THE UNIVERSITY A GENENTECH SPOKESWOMAN SAID THE COMPANY HOLDS A LICENSE TO USE THE GENESPLICING TECHNIQUE BUT DOES NOT OWN ANY RIGHTS TO THE PATENT 9404280153 940428 MARKETING & MEDIA ANALYSTS BOOST VALUE OF TOBACCO UNITS AT PHILIP MORRIS RJR AFTER BAT PACT BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL IF A COLLECTION OF THREADBARE CIGARETTE BRANDS SUCH AS TAREYTON AND PALL MALL CAN BRING 1 BILLION WHAT DOES THAT MEAN FOR THE MARLBORO MAN AND JOE CAMEL IN THE WAKE OF BA T INDUSTRIES PLC'S PLAN TO PAY 1 BILLION FOR AMERICAN TOBACCO CO ONE OF THE INDUSTRY'S WEAKEST COMPANIES WALL STREET IS BUSY RECALCULATING THE VALUE OF THE FAR MORE PROFITABLE TOBACCO BUSINESSES OF PHILIP MORRIS COS AND RJR NABISCO HOLDINGS CORP THE DEAL FOR AMERICAN TOBACCO A UNIT OF AMERICAN BRANDS INC COMES JUST AS BOTH PHILIP MORRIS AND RJR ARE CONSIDERING SEPARATING THEIR FOOD AND TOBACCO COMPANIES IN ADDITION TO BRIGHTENING THE TOBACCO INDUSTRY PROFIT OUTLOOK BY ELIMINATING A PRICECUTTING COMPETITOR SOME ANALYSTS SAID THE AMERICAN TOBACCO DEAL HAS ENCOURAGED INVESTORS TO REFOCUS ON THE STRONG CASH FLOW AND EARNINGS POWER OF THE DOMESTIC TOBACCO COMPANIES AFTER THE DEAL WAS ANNOUNCED I BUMPED UP MY NUMBERS FOR VALUING A SEPARATION OF PHILIP MORRIS'S FOOD AND TOBACCO BUSINESSES SAYS BRUCE W GREGORY A PORTFOLIO MANAGER WITH PROGRESSIVE PARTNERS AN INSTITUTIONAL INVESTOR PUSHING FOR A BREAKUP OF PHILIP MORRIS HOWARD PENNEY AN ANALYST AT MORGAN STANLEY GROUP INC SAYS NOW YOU HAVE A FLOOR FOR VALUING OTHER DOMESTIC TOBACCO OPERATIONS THE GROWING ANTITOBACCO MOOD IN WASHINGTON AND IN SOCIETY HAS CAUSED INVESTORS TO ASSIGN AN EXTREMELY LOW VALUE TO TOBACCO HOLDINGS FOR INSTANCE AT PHILIP MORRIS'S CURRENT PRICE OF 5425 A SHARE ITS POWERFUL WORLDWIDE TOBACCO BUSINESS IS BEING VALUED BY THE STOCK MARKET AT ONLY THREE TIMES CASH FLOW ACCORDING TO MARC COHEN TOBACCO ANALYST AT GOLDMAN SACHS & CO JUST APPLYING THE SAME MULTIPLE USED FOR AMERICAN TOBACCO ABOUT FIVE TIMES CASH FLOW WOULD ADD ABOUT 14 A SHARE TO PHILIP MORRIS'S SHARE PRICE MR COHEN ESTIMATES ANALYSTS AGREE THAT PHILIP MORRIS THE GLOBAL LEADER IN THE TOBACCO BUSINESS WITH UNIT VOLUME GROWTH AND A PROFIT MARGIN TWICE THAT OF AMERICAN TOBACCO WOULD BE VALUED AT A HIGHER MULTIPLE MOST LIKELY CLOSER TO EIGHT TIMES CASH FLOW SUCH A VALUATION WOULD TRANSLATE INTO AN 85ASHARE VALUE FOR PHILIP MORRIS ANALYSTS SAY RJR'S TOBACCO BUSINESS WOULD ALSO COMMAND A PREMIUM TO AMERICAN BRANDS' RJR IS CURRENTLY IN REGISTRATION FOR A 2 BILLION STOCK OFFERING THE POTENTIAL TO ELIMINATE THE CLOUD OF SMOKINGRELATED LAWSUITS IS ANOTHER FACTOR THAT FAVORS SEPARATING FOOD AND TOBACCO COMPANIES AS PART OF THE DEAL AMERICAN BRANDS IS BEING INDEMNIFIED BY BA T AGAINST ANY SMOKINGRELATED LAWSUITS BROUGHT AGAINST ITS DOMESTIC TOBACCO UNIT AVOIDING THE TOBACCO LIABILITY IS A HUGE BENEFIT TO AMERICAN BRANDS AND PART OF THE REASON THE COMPANY'S STOCK JUMPED 9 ON TUESDAY AFTER THE DEAL WAS ANNOUNCED MR COHEN SAYS WHILE NO ONE HAS SUCCESSFULLY BEEN AWARDED DAMAGES FOR SUING A TOBACCO COMPANY LIABILITY IS CLEARLY A FACTOR THAT IS DEPRESSING THE VALUATION OF TOBACCO STOCKS HE SAYS BAT WHICH ALREADY IS IN THE US MARKET WITH ITS BROWN & WILLIAMSON TOBACCO COMPANY SAID ASSUMING THE ADDITIONAL LIABILITY WOULD NOT POSE ANY ADDITIONAL RISK TO THE COMPANY THE AMERICAN TOBACCO DEAL STILL REQUIRES US GOVERNMENT ANTITRUST APPROVAL THE PLANNED ACQUISITION OF AMERICAN TOBACCO ISN'T ENTIRELY BULLISH FOR THE TOBACCO INDUSTRY HOWEVER BA T PLANS A STRONG PUSH TO REVIVE AMERICAN TOBACCO'S LUCKY STRIKE BRAND A MOVE THAT COULD LEAD TO AN EXPENSIVE ADVERTISING WAR WITH MARLBORO AND CAMEL AT A TIME WHEN CIGARETTE COMPANIES ARE SCRIMPING ON MARKETING EXPENSES I DON'T AGREE THAT A STRONG NO 3 PLAYER LEADS TO HIGHER PROFIT MARGINS SAYS MR COHEN IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING TUESDAY PHILIP MORRIS CLIMBED 38 TO 5425 AND RJR ROSE 58 TO 6875 THE BIG BOARD WAS CLOSED YESTERDAY 9404280152 940428 POLITICS & POLICY BOREN TO LEAVE CONGRESS FOR UNIVERSITY PRESIDENCY WASHINGTON SEN DAVID BOREN CONFIRMED HE WILL LEAVE CONGRESS AFTER THIS YEAR'S SESSION TO BECOME PRESIDENT OF THE UNIVERSITY OF OKLAHOMA HIS DEPARTURE WILL GIVE REPUBLICANS A CHANCE TO GRAB WHAT HAS BEEN A SAFE SEAT FOR DEMOCRATS BUT IT WILL OPEN A PLACE ON THE CRUCIAL SENATE FINANCE COMMITTEE FOR SOMEONE MORE LOYAL TO PRESIDENT CLINTON'S AGENDA THE 53YEAROLD SENATOR BEST KNOWN OF LATE FOR SINGLEHANDEDLY ALMOST KILLING MR CLINTON'S ECONOMIC PROGRAM LAST YEAR WILL REMAIN A SWING VOTE AS THE CLOSELY DIVIDED FINANCE PANEL DEBATES MR CLINTON'S HEALTHCARE INITIATIVE THIS YEAR BUT SENATE DEMOCRATS ARE EAGER TO REPLACE THE CONSERVATIVE MAVERICK ON THE COMMITTEE FOR THE FINAL TWO YEARS OF THE PRESIDENT'S TERM THEIR NARROW 119 EDGE OVER REPUBLICANS ON THE PANEL WHICH HANDLES TAX TRADE AND HEALTH ISSUES LEAVES NO ROOM FOR DEFECTIONS SEN BOREN USED HIS LEVERAGE LAST YEAR TO BLOCK MR CLINTON'S ECONOMIC PROGRAM UNTIL THE PRESIDENT ABANDONED A PROPOSED ENERGY TAX THOUGH SEN BOREN'S DEFECTIONS RILED COLLEAGUES THE FORMER GOVERNOR WAS POPULAR AT HOME EVEN BEFORE HE ANNOUNCED HIS PLANS TO RESIGN SENATE DEMOCRATS EXPECTED TO SUFFER SOME EROSION OF THEIR 5644 MAJORITY IN NOVEMBER'S ELECTIONS A SPECIAL OKLAHOMA ELECTION IS EXPECTED TO BE SCHEDULED SOMETIME AFTERWARD 9404280151 940428 INTERNATIONAL SCHNEIDER AFFAIR PROMPTS SCRUTINY AT DEUTSCHE BANK FRANKFURT A MEMBER OF DEUTSCHE BANK AG'S SUPERVISORY BOARD SAID HIGHLEVEL DISMISSALS MIGHT BE NEEDED TO REPAIR THE BANK'S DAMAGED PRESTIGE AFTER THE BANKRUPTCY OF FUGITIVE PROPERTY DEVELOPER JUERGEN SCHNEIDER GERHARD RENNER A LABORUNION REPRESENTATIVE ON THE BOARD SAID THE MEMBERS MUST DECIDE WHETHER TO MAKE CHANGES IN THE MANAGEMENT BOARD HEADED BY CHAIRMAN HILMAR KOPPER I CAN'T LET A MANAGEMENT BOARD MEMBER BE PAID THAT MUCH MONEY AND THEN NOT TAKE THE CONSEQUENCES IF THERE ARE SIGNS OF NEGLIGENCE OCCURING OVER A PERIOD TIME MR RENNER SAID DEUTSCHE BANK WITH 12 BILLION MARKS 7158 MILLION IN OUTSTANDING CREDITS TO MR SCHNEIDER'S BUSINESSES WAS THE DEVELOPER'S BIGGEST UNDERWRITER DURING HIS RAPID EXPANSION OVER THE PAST DECADE TWO WEEKS AGO IT FILED A FRAUD COMPLAINT AGAINST MR SCHNEIDER CLAIMING HE FALSIFIED RENTAL DOCUMENTS TO OBTAIN NEW CREDITS THE BANK ALSO ALLEGES THAT HE TOOK 219 MILLION MARKS WITH HIM WHEN FLEEING OVER EASTER LEAVING BEHIND A CRUMBLING PROPERTY EMPIRE SWISS AUTHORITIES YESTERDAY ORDERED 19 ZURICH AREA BANKS TO BLOCK ANY FUNDS DIRECTLY OR INDIRECTLY HELD BY MR SCHNEIDER ACTING ON A REQUEST FROM GERMAN PROSECUTORS SWISS OFFICIALS A DAY EARLIER BLOCKED AT LEAST 200 MILLION SWISS FRANCS 140 MILLION AT GENEVA BANKS ON SUSPICION THAT THE MONEY BELONGED TO EITHER MR SCHNEIDER OR AN INTERMEDIARY 9404280148 940428 WHO'S NEWS GTECH CORP GTECH CORP WEST GREENWICH RI THIS MAKER OF COMPUTERIZED LOTTERY SYSTEMS NAMED TWO NEW VICE PRESIDENTS AND A SENIOR VICE PRESIDENT ROY NICOLOSI FORMER CHIEF INFORMATION OFFICER FOR JWP INFORMATION SERVICES WILL BE VICE PRESIDENT OF SOFTWARE OPERATIONS WHILE WILLEM VAN RIJN A FORMER STRATEGIST FOR COOPERS & LYBRAND WILL HEAD UP GTECH'S OVERSEAS DIVISION AS SENIOR VICE PRESIDENT FOR INTERNATIONAL SALES AND OPERATIONS LAURANCE GAY A FORMER POLITICAL CONSULTANT TO THE REAGAN AND BUSH CAMPAIGNS WILL SERVE AS THE COMPANY'S VICE PRESIDENT OF GOVERNMENT RELATIONS 9404280147 940428 UNION TEXAS STOCK REPURCHASE HOUSTON UNION TEXAS PETROLEUM HOLDINGS INC SAID IT HAS AUTHORIZED THE REPURCHASE OF AS MANY AS TWO MILLION SHARES OF COMMON STOCK THE REPURCHASES WILL BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING FULFILLING EMPLOYEE BENEFIT PROGRAM OBLIGATIONS THE REPURCHASES WILL MOSTLY BE MADE IN THE OPEN MARKET 9404280145 940428 INTERNATIONAL BLACK TOWNSHIP JOYFULLY GREETS VOTE IN SOUTH AFRICA NEARBY WHITES SOMBER BY THOMAS KAMM AND JOE DAVIDSON STAFF REPORTERS OF THE WALL STREET JOURNAL KAGISO SOUTH AFRICA NOT EVEN A FOURHOUR WAIT TO CAST A BALLOT COULD TAKE THE SMILE OFF REBECCA MOKGOSI'S FACE AS SHE EMERGED FROM THE POLLING STATION IN THIS BLACK TOWNSHIP AFTER ALL SHE HAD BEEN WAITING ALL HER LIFE AT LONG LAST SHE PROCLAIMED TO NO ONE IN PARTICULAR I'VE BEEN FIGHTING ALL ALONG TO BE HERE NEVER EVER IN MY LIFE I THOUGHT I WOULD VOTE I FEEL GREAT VERY HAPPY A FEW MILES AWAY IN THE WHITE GOLD MINING TOWN OF KRUGERSDORP THE MOOD WAS SOMBER AS FAR AS I'M CONCERNED IT'S A BAD DAY SAID 63YEAROLD DESMOND ALLIN AS HE WAITED TO VOTE IT'S THE BEGINNING OF THE END FULL OF HOPE OR FOREBODING OFTEN WALKING FOR MILES AND WAITING FOR HOURS 22 MILLION SOUTH AFRICANS OF ALL RACES BEGAN VOTING YESTERDAY IN A HISTORIC ELECTION THAT WILL GIVE BIRTH NOT JUST TO A NEW GOVERNMENT BUT TO A NEW COUNTRY WITH YESTERDAY'S VOTING GENERATIONS OF WHITE DOMINATION AND OFFICIAL RACIAL DISCRIMINATION CAME TO AN END AND SOUTH AFRICA FORMALLY BECAME A MULTIRACIAL DEMOCRACY THE BLUE WHITE AND ORANGE STRIPES OF WHITE SOUTH AFRICA WERE LOWERED FOR THE LAST TIME AT MIDNIGHT TUESDAY AND THE MULTICOLORED FLAG OF THE NEW SOUTH AFRICA WAS RAISED ON OFFICIAL BUILDINGS A NEW INTERIM CONSTITUTION THAT RECOGNIZES ALL CITIZENS AS EQUALS BECAME THE LAW OF THE LAND AND THE LAST FORMAL REMNANT OF APARTHEID TRIBAL HOMELANDS THAT WERE RECOGNIZED ONLY BY SOUTH AFRICA CEASED TO EXIST THERE WERE TEARS OF JOY AND THERE WERE CRIES OF PAIN IT'S AN INCREDIBLE FEELING LIKE FALLING IN LOVE SAID ARCHBISHOP DESMOND TUTU THE 1984 NOBEL PEACE PRIZE WINNER WHO LIKE OTHER BLACKS VOTED FOR THE FIRST TIME YESTERDAY BUT THE NEW SOUTH AFRICA WAS BORN AMID VIOLENCE A POWERFUL CAR BOMB ALLEGEDLY SET BY RADICAL WHITES THE THIRD IN FOUR DAYS WENT OFF AT JOHANNESBURG'S JAN SMUTS AIRPORT WOUNDING 18 PEOPLE SERIOUSLY POLICE ARRESTED 31 SUSPECTS IN CONNECTION WITH THE SERIES OF BOMBINGS THERE WERE ALSO ALLEGATIONS OF VOTING IRREGULARITIES AND LOGISTICAL PROBLEMS INCLUDING REPORTS OF MISSING STICKERS FOR THE INKATHA FREEDOM PARTY WHICH WERE TO BE AFFIXED TO BALLOTS FOLLOWING THE PARTY'S LASTMINUTE DECISION TO END ITS ELECTION BOYCOTT INKATHA'S LEADER CHIEF MANGOSUTHU BUTHELEZI SPOKE OF A SERIOUS CRISIS BUT OFFICIALS SAY THE VOTING WHICH CONTINUES TODAY WAS LARGELY FAIR OFFICIALS AGREED TO EXTEND VOTING IN NATAL PROVINCE THROUGH TOMORROW MR BUTHELEZI HAD DEMANDED AN EXTENSION CITING WIDESPREAD CONFUSION THE MAN WHO IS LIKELY TO LEAD THIS NEW SOUTH AFRICA AND WHO SPENT 27 YEARS OF HIS LIFE IN JAIL FOR RESISTING APARTHEID WAS AMONG THE FIRST TO VOTE YESTERDAY NELSON MANDELA LEADER OF THE AFRICAN NATIONAL CONGRESS CAST HIS BALLOT IN INANDA IN STRIFETORN NATAL AND PROCLAIMED THE BEGINNING OF A NEW ERA AN ERA OF HOPE RECONCILIATION AND NATIONBUILDING BUT TALKING TO VOTERS IN KRUGERSDORP A PREDOMINANTLY AFRIKANER TOWN 19 MILES WEST OF JOHANNESBURG AND IN ITS SISTER BLACK TOWNSHIP OF KAGISO SHOWS THIS WILL BE A TALL ORDER FOR IF THEY HAVE BECOME EQUAL IN RIGHTS SOUTH AFRICANS REMAIN DIVIDED BY A GULF OF INEQUALITY MISTRUST AND SOMETIMES HATRED CECIL CONRADIE A MUSTACHIOED 50YEAROLD BUILDING CONTRACTOR HAS JUST CAST HIS BALLOT FOR RETIRED GEN CONSTAND VILJOEN WHO ADVOCATES A HOMELAND FOR WHITES BUT HIS MIND IS SET ON BULLETS HE IS CONVINCED THAT NO SOONER WILL THE ELECTIONS END THAN VICTORIOUS BLACKS WILL GO ON A RAMPAGE THEY'LL START IN THE SUPERMARKETS AND THEN THEY'LL COME FOR OUR HOUSES HE SAYS THEY'LL TRY TO KILL OUR CHILDREN BUT I'M PREPARED FOR THEM I'VE GOT SOME WEAPONS I HAVE A LOT OF BULLETS I'LL KILL THEM I'LL EAT THEM LIKE FLIES MR CONRADIE SAYS THE OLD SOUTH AFRICA WAS FINE FOR HIM AND SEES NO REASON WHY IT SHOULD CHANGE WHITE PEOPLE DEVELOPED SOUTH AFRICA AND THE BLACKS ARE GOING TO RUIN EVERYTHING HE SAYS IT'S CLEAR EVERYWHERE IN AFRICA IT'S THE SAME THING SO HOW WILL HE FEEL ABOUT HAVING A BLACK PRESIDENT HE CAN BE PRESIDENT OF THOSE PEOPLE BUT NOT OF ME HE SAYS I DON'T WANT TO BE RUN BY A COMMUNIST TO BE SURE MR CONRADIE'S VIEWS ARE EXTREME MARTHA LUBBE A 78YEAROLD RETIREE SAYS SHE FEELS VERY POSITIVE ABOUT THE FUTURE WHOEVER COMES TO POWER SHE HAILS PRESIDENT FW DE KLERK AS A MAN OF VISION WHO GAVE BLACKS THE VOTE TO AVOID A REVOLUTION WE'VE COME TO A STAGE WE SHOULD HAVE REACHED LONG AGO SHE SAYS BUT HER VIEWS ARE RARE IN KRUGERSDORP THOUGH MOST WHITES ARE LESS INFLAMMATORY THAN MR CONRADIE THEY ARE UNSURE OF THE FUTURE IT'S DIE THE BELOVED COUNTRY SAYS MR ALLIN HIS WIFE JACKIE FEELS BETRAYED BY MR DE KLERK IT'S A VERY SAD DAY SHE SAYS WHILE THE MOOD IN KRUGERSDORP WAS FUNEREAL THE ATMOSPHERE IN KAGISO WAS FESTIVE THE STREETS WERE FILLED WITH PEOPLE AND MUSIC WAS IN THE AIR LETTA JANE MADISANE A 76YEAROLD RETIRED SCHOOL PRINCIPAL COULDN'T BELIEVE SHE HAD LIVED LONG ENOUGH TO VOTE I'M SO HAPPY SHE SAYS BUT HER JOY DOESN'T MASK THE ANGER SHE FEELS FOR APARTHEID WHICH FORCED HER NEPHEW INTO EXILE PROVIDED POOR EDUCATION FOR BLACKS AND CAUSED HER ONE INDIGNITY AFTER ANOTHER NOW SHE AND OTHERS IN KAGISO WANT REDRESS ACROSS THE DIRT ROAD WHICH IS SENOAMORE STREET MS MADISANE'S NEIGHBOR AND FORMER PUPIL MARY FOFU WAS ALREADY MAKING DEMANDS OF MR MANDELA HE MUST GIVE US A BETTER LIFE SHE SAYS WE MUST HAVE ELECTRICITY SHE WANTS THE ROAD PAVED UNDER APARTHEID MS FOFU WAS JAILED FOR STONING POLICEMEN AND A LIQUOR STORE AND BOYCOTTED ATLHOLANG PRIMARY SCHOOL FOR THREE MONTHS YESTERDAY SHE RETURNED THERE TO VOTE WAITING FOUR HOURS IN A LINE THAT SNAKED ACROSS THE DUSTY SCHOOLYARD WITH THE VOTE MS FOFU NO LONGER FEELS THE NEED TO THROW ROCKS AND NO LONGER EXPECTS TO BE FIRED ON BY POLICE SHE BELIEVES THE NEW GOVERNMENT WILL PROVIDE BETTER EDUCATION FOR HER TWO CHILDREN AND SHE LOOKS FORWARD TO A CAREER IN COMPUTERS OR NURSING FOR HERSELF THOUGH UNEMPLOYED SHE PLANS TO MOVE SOON FROM HER SMALL RENTAL HOME TO A NICER ONE 9404280143 940428 JAMES RIVER TO PAY ABOUT 575 MILLION FOR CONTROL OF JAMONT RICHMOND VA JAMES RIVER CORP SAID IT WILL PAY ABOUT 575 MILLION TO GAIN CONTROL OF JAMONT NV A EUROPEAN PAPER JOINT VENTURE IN WHICH IT ALREADY HOLDS A 43 STAKE UNDER TERMS OF THE AGREEMENT JAMES RIVER WILL PURCHASE RAYNE HOLDINGS INC'S 50 STAKE IN JAMONT HOLDINGS NV JAMES RIVER A PAPER PRODUCTS CONCERN OWNS THE OTHER HALF OF JAMONT HOLDINGS WHICH IN TURN OWNS 864 OF JAMONT NV EUROPAPER INC OWNS THE REMAINING 136 OF JAMONT NV THIS ACQUISITION FITS JAMES RIVER'S LONGTERM STRATEGY OF EXPANDING ITS PRESENCE IN EUROPE WHERE TISSUE CONSUMPTION IS GENERALLY INCREASING AT A FASTER RATE THAN IN THE UNITED STATES SAID ROBERT C WILLIAMS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF JAMES RIVER A PAPERPRODUCTS CONCERN JAMONT NV BRUSSELS MAKES TISSUE FEMININEHYGIENE PRODUCTS AND OTHER PAPER PRODUCTS FOR THE EUROPEAN MARKET IT HAD ABOUT 14 BILLION IN 1993 SALES AND A JAMES RIVER SPOKESWOMAN SAID THE VENTURE WAS MARGINALLY PROFITABLE LAST YEAR JAMES RIVER SAID IT WOULD FINANCE THE ACQUISITION THROUGH DEBT AND EQUITY OFFERINGS THE TRANSACTION WHICH REQUIRES CERTAIN EUROPEAN REGULATORY APPROVALS IS EXPECTED TO CLOSE IN THE THIRD QUARTER FOLLOWING THE ACQUISITION ANNOUNCEMENT MOODY'S INVESTORS SERVICE PLACED THE LONGTERM DEBT OF JAMES RIVER UNDER REVIEW FOR A POSSIBLE DOWNGRADE ABOUT 2 BILLION IN DEBT IS AFFECTED THE RATINGS AGENCY SAID IT IS CONCERNED ABOUT HOW JAMES RIVER WILL FINANCE THE ACQUISITION AND INCREASING COMPETITION IN THE EUROPEAN TISSUE MARKET 9404280141 940428 ANHEUSER PROFIT ROSE 53 IN FIRST QUARTER ON GAIN AMONG BEERS ST LOUIS ANHEUSERBUSCH COS REPORTED HIGHER SALES AND EARNINGS FOR ITS FIRST QUARTER AND SAID AN IMPROVING DOMESTIC ECONOMY BODES WELL FOR BEER SALES THE WORLD'S LARGEST BREWER SAID EARNINGS FOR THE QUARTER ROSE 53 TO 2044 MILLION FROM 1941 MILLION A YEAR EARLIER PERSHARE EARNINGS ROSE TO 76 CENTS FROM 69 CENTS THERE WERE 13 MILLION OR 46 FEWER SHARES OUTSTANDING IN THE LATEST PERIOD SALES ROSE 5 TO 262 BILLION FROM 25 BILLION THE COMPANY CITED DOUBLEDIGIT GAINS FOR ITS BUD LIGHT BRAND AND STRONG ACCEPTANCE OF ITS NEWEST BEER BUDWEISER ICE DRAFT AND SAID IT SOON WOULD INTRODUCE ICE DRAFT LIGHT NATIONALLY DURING THE LATEST QUARTER ANHEUSER SOLD 202 MILLION BARRELS OF BEER TO WHOLESALERS UP 44 ALTHOUGH IN PART THAT INCREASE CAME AS WHOLESALERS STOCKPILED AGAINST THE POSSIBILITY OF A STRIKE BY THE COMPANY'S BEERPRODUCTION EMPLOYEES BUT THIS WEEK EMPLOYEES VOTED OVERWHELMINGLY TO ACCEPT A NEW CONTRACT ANHEUSER SAID FORECASTING A 1 US INDUSTRY GROWTH RATE FOR SEVERAL YEARS CHAIRMAN AND CHIEF EXECUTIVE OFFICER AUGUST A BUSCH III TOLD SHAREHOLDERS AT WEDNESDAY'S ANNUAL MEETING IN LOS ANGELES THAT DEMOGRAPHICS ARE BECOMING MORE FAVORABLE AS THE POSTBABYBOOMER GENERATION REACHES LEGAL DRINKING AGE HE ALSO CITED EXCELLENT OPPORTUNITIES FOR GROWTH IN THE WORLD MARKET THE COMPANY DIDN'T MENTION ITS EAGLE SNACKS UNIT OR ITS CANMANUFACTURING OPERATIONS IN ITS EARNINGS REPORT 9404280140 940428 COMPUTERS KIDS' COMPUTER PROGRAMS TRY TO TEACH LIKE HUMANS AND INCREASINGLY SUCCEED BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL COMPUTERS WHICH GET POOR MARKS AS TEACHERS IN MANY SCHOOLS ARE GETTING IMPRESSIVE REPORT CARDS AS HOME TUTORS SOME OF THE CREDIT GOES TO THE CURRENT WAVE OF POWERFUL HOME COMPUTERS THE NEW MACHINES OFTEN OUTSTRIP THEIR AGING CLASSROOM COUNTERPARTS USING COLOR RICH SOUND AND EVEN MOTION PICTURES FOR PARENTS WORRIED ABOUT THE QUALITY OF SCHOOLS IT'S A TIMELY EVOLUTION BARRIERS REMAIN UNLIKE HUMANS ELECTRONIC PEDAGOGUES CAN'T YET MEASURE CHILDREN'S PROGRESS SUBTLY ENOUGH TO MAKE A SHARP CHANGE IN TEACHING APPROACH WHEN STUDENTS AREN'T GETTING IT SAYS BEVERLY WOOLF A UNIVERSITY OF MASSACHUSSETTS COMPUTERSCIENCE RESEARCH PROFESSOR THAT WILL REQUIRE MORE COMPUTING POWER AND MORE ELABORATE PROGRAMMING EVEN SO MS WOOLF SAYS I THINK THE TECHNOLOGY IS GETTING VERY CLOSE NOT MORE THAN FIVE YEARS OR SO AWAY IN THE LABS AND THE BEST OF TODAY'S PROGRAMS ARE GOOD ENOUGH THAT WHEN MANY OF THE ELEMENTS ARE BUNDLED TOGETHER IN A MASTERFUL PACKAGE IT'S LIKE SEEING A FINE TEACHER AT WORK SAYS JAY SIVINKACHALA VICE PRESIDENT OF INTERACTIVE EDUCATIONAL SYSTEMS DESIGN INC NEW YORKBASED CONSULTANTS ERIKA OMOTOY AGE SIX IS COMBINING FUN WITH LEARNING AS SHE TRIES TO FIT TRIANGLES AND TRAPEZOIDS INTO AN ODD OUTLINED SHAPE ON HER COMPUTER SCREEN USING A COMPUTER MOUSE SHE CAREFULLY MANIPULATES THE FORMS PAUSING A MINUTE BEFORE MANEUVERING THE FINAL ONE ON THE SCREEN A FROGLIKE CREATURE DANCES JOYFULLY ERIKA UPPER LIP PURSED IN DETERMINATION JETS OFF INTO THE DARK BLUE SPACE WORLD OF TREASURE GALAXY TO FACE THE NEXT CHALLENGE BEHIND A ONEWAY MIRROR PROGRAMMERS AND EDUCATIONAL EXPERTS AT LEARNING CO A SOFTWARE CONCERN IN FREMONT CALIF TAKE NOTES TREASURE GALAXY SLATED FOR SALE LATER THIS YEAR IS IN THE FINAL STAGES OF TESTING ONE OF THE LATEST WAVE OF MATH AND LOGIC PROGRAMS FOR YOUNG CHILDREN WHILE THE BASIC TEACHING TOOLS USED BY THE NEW SOFTWARE ARE MUCH LIKE THOSE USED IN SCHOOLS SOFTWARE AT HOME MUST WORK ON ITS OWN WITHOUT A HUMAN TEACHER AS TREASURE GALAXY USERS BECOME MORE ADEPT THE PROGRAM AUTOMATICALLY TOSSES OUT MORE CHALLENGING PROBLEMS IF STUDENTS STUMBLE QUESTIONS ARE REPEATED LATER TO ASSURE UNDERSTANDING TOO MANY MISTAKES CAUSE THE PROGRAM TO EASE UP A NOTCH WHILE STILL SHORT OF THE ARTIFICIAL INTELLIGENCE THAT'S EXPECTED IN A FEW YEARS SUBTLE RESPONSIVENESS IS INCREASINGLY BEING INCORPORATED IN THE LATEST PROGRAMS IT'S NOT EASY TO BUILD HOWEVER ONLY ABOUT ONE IN 20 PROGRAMS DOES IT WELL CAUTIONS WARREN BUCKLEITNER EDITOR OF CHILDREN'S SOFTWARE REVUE NEWSLETTER OF YPSILANTI MICH TREASURE GALAXY BEGAN WITH EXPERIMENTS LAST FALL WHEN ERIKA AND OTHER CHILDREN WERE INVITED TO A LEARNING CO LAB TO MOVE PIECES OF PAPER AND STAMP SHAPES IN WAYS DESIGNED TO SIMULATE PARTS OF THE PROGRAM CHILDREN WERE SHOWN FIVE BUTTERFLIES FOR INSTANCE AND ENCOURAGED TO STAMP A LIKE NUMBER OF BEARS' PAWS THIS WAY OF SHOWING ABSTRACT COUNTING CONCEPTS WENT WELL OTHER TACTICS DIDN'T AN EXERCISE TO SIMULATE MEASURING TEMPERATURE WAS A BUST KIDS FUMBLED WHEN ASKED TO CORRELATE PICTURES OF WARM AND COOL ITEMS WITH A THERMOMETER SCALE THE COMPUTER WE DECIDED JUST ISN'T THE BEST PLACE TO ILLUSTRATE THIS SAYS LISA MARKS WHO HEADS THE TEAM PRODUCING THE PROGRAM WHICH CONCEPTS COMPUTERS HANDLE BEST IS A HOT TOPIC IN EDUCATIONAL PROGRAM DESIGN SCHOOL SOFTWARE FOCUSED FOR YEARS ON DRILL AND PRACTICE EXERCISES THAT QUIZZED STUDENTS UNTIL CORRECT ANSWERS WERE GIVEN BUT IMAGINATIVE NEW TWISTS HAVE MADE THE BASIC PROGRAMS EVER MORE INVEIGLING WHAT PEOPLE HAVE DISCOVERED IS THAT IT'S GOT TO ENTERTAIN IT CAN'T BE SOLELY EDUCATIONAL AND WORK OUTSIDE A CLASSROOM SAYS RICHARD A SCHWIER AN EXPERT IN EDUCATIONAL PROGRAM DESIGN AT THE UNIVERSITY OF SASKATCHEWAN IN THE EARLY 1980S TEACHER JAN DAVIDSON DEVELOPED THE PIONEERING MATH BLASTER A CARTOON ASTRONAUT CHARACTER WHO COUNTED WHILE SHOOTING AT ALIENS THE ORIGINAL MATH BLASTER HAD CRUDE PICTURES AND SIMPLE EXERCISES THE LATEST IS AN ELABORATELY ILLUSTRATED SEARCH THROUGH SPACE FOR THE ASTRONAUT'S DOG A TREK THAT AMONG OTHER THINGS LEADS TO A CAVE WHERE THE ASTRONAUT NUMBERS CHANGING CONSTANTLY ON HIS CHEST MUST SQUEEZE THROUGH HOLES WITH DIFFERENT VALUES ANOTHER EDUCATIONAL CLASSIC BRODERBUND SOFTWARE INC'S CARMEN SANDIEGO DETECTIVE SERIES ENCOURAGES PLAYERS TO LEARN ABOUT GEOGRAPHY TRADE HISTORY OR SPACE WHILE LOOKING FOR MISCREANTS IT HAS SPAWNED EVERYTHING FROM A LINE OF CLOTHING TO A TELEVISION SHOW BUT ITS MAIN VALUE IS ITS TEACHING POTENTIAL SOCALLED SIMULATIONS PUSH LEARNING BY PUTTING THE USER IN A CONTROLLABLE MINIWORLD A FANTASY THAT CAN BE ABSORBING SIMCITY 2000 A PROGRAM BY MAXIS CHALLENGES USERS TO BUILD AND OPERATE A CITY THE PLAYER DETERMINES ALMOST EVERY ELEMENT OF MUNICIPAL FINANCE DEVELOPMENT INDUSTRY LAW ENFORCEMENT AND EDUCATION PRETTY CITYSCAPES GROW OR DIE ON THE SCREEN ORIGINALLY DESIGNED AS ENTERTAINMENT FOR ADULTS THE PROGRAM HAS GAINED A WIDE FOLLOWING IN EDUCATIONAL CIRCLES AS AN ELABORATE TOOL FOR SOCIAL STUDIES ODELL DOWN UNDER BY MINNESOTA EDUCATIONAL COMPUTING CORP WAS CREATED TO PUT USERS ON AUSTRALIA'S GREAT BARRIER REEF AS ANY ONE OF DOZENS OF VARIETIES OF COLORFUL FISH THE USER OR FISH MUST LEARN WHAT TO EAT HOW TO STAY HEALTHY AND HOW TO HIDE FROM PREDATORS ALSO EMERGING IN THE EDUCATIONAL WAVE ARE CHILDREN'S TOOLS WRITING AND DRAWING PROGRAMS AND EVEN KIDS' SPREADSHEET PROGRAMS EXPLORATION PROGRAMS THAT GUIDE USERS THROUGH OCEANS OF INFORMATION ARE POPULAR AND INCREASINGLY REALISTIC IN KNOWLEDGE ADVENTURE INC'S SCIENCE ADVENTURE II FOR INSTANCE A USER CAN WANDER THROUGH A THREEDIMENSIONAL STONEHENGE EXPERIMENT WITH DIFFERENT TYPES OF LIGHT SHINING THROUGH A PRISM OR READ DETAILED ARTICLES ON SCIENTISTS' WORKS THE INCREASE IN SOFTWARE HAS MADE IT HARDER THAN EVER FOR PARENTS TO MAKE CHOICES PEOPLE IN THE BUSINESS SAY THERE IS SOME POOR WORK OUT THERE AND BADLY DESIGNED SOFTWARE ISN'T A MAGIC PILL FOR ANYONE SAYS MR SIVINKACHALA ONE PROBLEM COLORFUL SEALED PACKAGES GIVE LITTLE CLUE TO THE VALUE INSIDE MOREOVER PROGRAMS ARE PRICEY RANGING FROM ABOUT 30 TO 80 AND MORE BUT WITH THE ARRIVAL OF CDROMS DISKS LIKE THOSE USED FOR MUSIC SOME VIDEO OUTLETS ARE EXPERIMENTING WITH RENTALS AND SOME PUBLICATIONS REVIEW CHILDREN'S SOFTWARE THOUGH WORDOFMOUTH IS STILL A USEFUL GUIDE EXPERTS RECOMMEND THAT PARENTS CONSIDER SEVERAL THINGS FUN FIRST LEARNING FOLLOWS IS A GOOD RULE TO START WITH THE COMPUTER CAN PROVIDE THE KNOWLEDGE BUT IF THE CHILD DOESN'T WANT TO SIT DOWN AND GET INVOLVED IT WON'T WORK SAYS MS DAVIDSON DAVIDSON & ASSOCIATES INC'S PRESIDENT WHILE ENGAGING YOUNG USERS IS IMPORTANT BE CAUTIOUS ABOUT CUTESOUNDING TITLES A FEW WELLKNOWN CHILDREN'S CHARACTERS SUCH AS THE BERENSTAIN BEARS ARE USED IN MEDIOCRE PROGRAMS SOFTWARE SHOULD BE CONTROLLABLE BY YOUNG USERS KIDS SHOULD BE ABLE TO STOP AND GO BACK WHEN THEY DON'T UNDERSTAND THE BEST SOFTWARE IS ALSO SENSITIVE TO THE USER'S SUCCESSES AND FAILURES SPARING GOOD SPELLERS FROM HAVING TO PUT UP WITH THREELETTER WORDS FOR EXAMPLE EVEN WITH THAT LATITUDE THE BETTER PROGRAMS ARE USUALLY DESIGNED FOR NARROW AGE RANGES PROGRAMS THAT CLAIM TO WORK FOR MANY AGES SUCH AS THREE TO 10 YEARS OLD PROBABLY MISS THE MARK FOR ALL IN THE FUTURE EXPERTS SAY PROGRAMS PROBABLY WILL BE BROADER AND MORE AMBITIOUS MIXING DRILLANDPRACTICE NOTIONS WITH SIMULATIONS A FEW ARE EMERGING ALREADY REAL WORLD MATH ADVENTURES IN FLIGHT DUE LATER THIS YEAR FROM SANCTUARY WOODS MULTIMEDIA CORP AND ADDISON WESLEY PUBLISHING CO TAKES USERS TO AN AIRPORT AND REQUIRES MATH SKILLS FOR EVERYTHING FROM FITTING CARPETS IN AIRCRAFT TO PERFORMING THE NAVIGATION FOR A FLIGHT PLAN 9404280138 940428 BUSINESS BRIEF TELEDYNE INDICATES SOME MILITARY UNITS COULD GO ON BLOCK LOS ANGELES TELEDYNE INC THREW ITS HAT IN THE RING AS A POTENTIAL CANDIDATE TO SELL OFF SOME MILITARY BUSINESSES IN THE DEFENSE INDUSTRY'S CONSOLIDATION AT THE COMPANY'S ANNUAL MEETING DONALD RICE PRESIDENT AND CHIEF OPERATING OFFICER TOLD SHAREHOLDERS THAT WE ARE WILLING TO BE EITHER BUYER OR SELLER IN THE PAST MR RICE AND OTHER TELEDYNE MANAGERS SAID THEY CONSIDERED ALL OF THE COMPANY'S MAJOR DEFENSE BUSINESSES TO HAVE SUBSTANTIAL PROSPECTS AND WERE MORE INTERESTED IN BUILDING ON THEM THAN IN PUTTING THEM ON THE BLOCK WHILE MR RICE DIDN'T PROVIDE DETAILS YESTERDAY ABOUT SPECIFIC ASSET SALES OR POTENTIAL ACQUISITIONS THAT MIGHT BE UNDER REVIEW HIS COMMENTS WERE THE MOST EXPLICIT YET SUGGESTING THAT TELEDYNE'S LONGTERM STRATEGIC PLAN ENVISIONS SOME POSSIBLE DIVESTITURES IN AN INTERVIEW AFTER THE MEETING MR RICE SAID WE ARE OPENMINDED ABOUT ASSET SALES AND ARE CONTINUALLY EVALUATING POTENTIAL OPTIONS HE DECLINED TO ELABORATE OR TO SAY WHETHER NEGOTIATIONS ALREADY ARE UNDER WAY DIVESTITURES ARE A MORE VIABLE OPTION FOR TELEDYNE IN LIGHT OF LAST WEEK'S ANNOUNCEMENT OF A TENTATIVE 1125 MILLION SETTLEMENT WITH THE JUSTICE DEPARTMENT OF LONGSTANDING CIVIL OVERCHARGE AND FALSE TESTING ALLEGATIONS INVOLVING PENTAGON CONTRACTS IN RECENT YEARS THE COMPANY HAS AGREED TO PAY A TOTAL OF MORE THAN 150 MILLION IN CIVIL AND CRIMINAL FINES AND PENALTIES STEMMING FROM MISCONDUCT BY ITS DEFENSE UNITS GOING BACK TO THE 1980S RESPONDING TO HOSTILE QUESTIONS BY A FEW SHAREHOLDERS CHAIRMAN WILLIAM RUTLEDGE SAID MANAGEMENT HAS DONE EVERYTHING HUMANLY POSSIBLE TO RESOLVE THE LEGAL PROBLEMS A NUMBER OF CASES STILL HAVEN'T BEEN SETTLED BUT MR RUTLEDGE SAID HE WAS OPTIMISTIC MOST OF THOSE WOULD BE RESOLVED AS EARLY AS POSSIBLE MR RUTLEDGE AND MR RICE REITERATED TELEDYNE'S PLANS TO IMPROVE PROFITABILITY BY INTRODUCING NEW PRODUCTS SHIFTING DEFENSE TECHNOLOGIES TO COMMERCIAL USES AND PERHAPS ACQUIRING SOME NONDEFENSE BUSINESSES 9404280137 940428 INTERNATIONAL HYUNDAI YAK TO FORM VENTURE SEOUL SOUTH KOREA CONGLOMERATE HYUNDAI GROUP SAID IT HAS SET UP A JOINTVENTURE AIRCRAFT FIRM IN PARTNERSHIP WITH YAK CO OF RUSSIA TO PRODUCE AIRCRAFT AND AIRCRAFT PARTS IN SOUTH KOREA THE JOINTVENTURE FIRM TO BE CAPITALIZED AT 500 MILLION WON 619500 IS NAMED HYUNDAI YAK AEROSPACE CO HYUNDAI TECHNOLOGY & DEVELOPMENT CO AN AFFILIATE OF HYUNDAI GROUP HOLDS 51 OF THE FIRM'S EQUITY WHILE THE REMAINDER IS OWNED BY THE RUSSIAN FIRM HYUNDAI YAK WILL PRODUCE YAK 42H PASSENGER AIRCRAFT A PASSENGER CARRIER THAT CAN TRANSPORT 150 PEOPLE AND A SHORTDISTANCE PASSENGER CARRIER CALLED YAK 40H DETAILS ON THE DEAL WERE NOT IMMEDIATELY AVAILABLE 9404280136 940428 WHO'S NEWS DISNEY'S VOLUME' STRATEGY TAKES TOLL AS MESTRES LEAVES HOLLYWOOD PICTURES BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL BURBANK CALIF WALT DISNEY CO'S RISKY NEW VOLUME STRATEGY OF RELEASING AS MANY AS 60 FILMS A YEAR HASN'T PAID MAJOR DIVIDENDS YET AT THE BOX OFFICE AND NOW MAY BE RESULTING IN INTERNAL STRAIN DISNEY'S HERETOFORE STABLE STUDIO MANAGEMENT TEAM WAS SHAKEN UP THIS WEEK WHEN RICARDO MESTRES PRESIDENT OF THE COMPANY'S HOLLYWOOD PICTURES LABEL AGREED TO STEP DOWN TO BECOME AN INDEPENDENT PRODUCER AND HOLLYWOOD EXECUTIVES ARE QUESTIONING WHETHER DISNEY CAN MANAGE ITS PROMISED MASSIVE FLOW OF MOTION PICTURES WHEN SOME STUDIOS RELEASE JUST 15 TO 20 A YEAR YET THE FILM UNITS OF TIME WARNER INC AND SONY CORP ALREADY ARE APPROACHING DISNEY'S LEVELS THOSE OF NEWS CORP'S TWENTIETH CENTURY FOX AND PARAMOUNT COMMUNICATIONS INC ARE INCREASING PRODUCTION AND A NUMBER OF NEW INDEPENDENTS ARE GEARING UP THUS THE GROWING GLUT OF MOVIES IS AN INCREASING SUBJECT OF CONCERN IN HOLLYWOOD MR MESTRES 36 YEARS OLD WAS IN THE MOLD OF DISNEY STUDIO CHIEF JEFFREY KATZENBERG WITH WHOM HE HAD WORKED FOR 14 YEARS GOING BACK TO PARAMOUNT INDEED WHEN DISNEY'S ADULTORIENTED MOVIE OPERATIONS WERE SPLIT BETWEEN ITS TOUCHSTONE PICTURES DIVISION AND HOLLYWOOD PICTURES AND MR MESTRES WAS INSTALLED AS HEAD OF HOLLYWOOD MORE THAN FIVE YEARS AGO MR KATZENBERG CALLED HIM MANIACALLY FOCUSED WHICH SOUNDS LIKE A DESCRIPTION OF HIMSELF SOME SAY THAT MR KATZENBERG'S OWN FOCUS WHICH HAD BEEN RELENTLESSLY HANDSON IN ALL ASPECTS OF THE MOVIE BUSINESS HAS SHIFTED SLIGHTLY IN RECENT YEARS TOWARD DISNEY'S WILDLY SUCCESSFUL ANIMATED FILMS WITH MORE ANIMATED WORKS TO COME SUCH AS THE LION KING POCAHONTAS AND THE HUNCHBACK OF NOTRE DAME FURTHERMORE ALTHOUGH MR KATZENBERG IN MANY CASES WITH DISNEY CHAIRMAN MICHAEL EISNER STILL APPROVES ALL FILM PROJECTS HE HAS BEEN DELEGATING MORE JOE ROTH WHO HAD RUN THE TWENTIETH CENTURY FOX FILM UNIT WAS BROUGHT IN TO PRODUCE A LARGE SLATE OF FILMS WITH AN EXTRAORDINARY DEGREE OF AUTONOMY TOUCHSTONE PRESIDENT DAVID HOBERMAN WAS THEN GIVEN MORE RESPONSIBILITY AND FREEDOM DISNEY ALSO HAS BEGUN DISTRIBUTING FILMS FROM SUCH SUPPLIERS AS MIRAMAX CINERGI MERCHANTIVORY AND INTERSCOPE THE TIGHTLY CONTROLLED CENTRAL ORGANIZATION THAT MR MESTRES HAD THRIVED UNDER BEGAN TO LOOSEN WITH MR ROTH'S CARAVAN PICTURES AND MIRAMAX ADDED TO THE MIX DISNEY WAS IN POSITION TO RELEASE AT LEAST ONE NEW FILM A WEEK THE THEORY WAS THAT WITH COST DISCIPLINE THE VOLUME STRATEGY WOULD BUILD UP DISNEY'S FILM LIBRARY AND THAT OCCASIONALLY A PRETTY WOMAN WOULD BREAK OUT OF THE PACK AND BECOME A BLOCKBUSTER BUT TOUCHSTONE AND HOLLYWOOD PICTURES HAVEN'T HAD A MOVIE GROSSING MORE THAN 100 MILLION SINCE SISTER ACTIN 1992 AND THERE HAS BEEN A STEADY STREAM OF FORGETTABLE MOVIES SUCH AS CABIN BOY FATHER HOOD MONEY FOR NOTHING ASPEN EXTREME HOCUS POCUS AND ANOTHER STAKEOUT IN ITS FIVEYEAR HISTORY HOLLYWOOD PICTURES ITSELF HAS NEVER EXCEEDED THE 88 MILLION GROSS OF THE HAND THAT ROCKS THE CRADLE SOME INDIVIDUALS CLOSE TO DISNEY SAY THAT THERE IS SOME INTERNAL CONCERN THAT THE HIGHVOLUME STRATEGY HAS MADE EXECUTIVES LOWER THEIR SIGHTS A LITTLE WITH THAT MANY MOVIES IT'S HARDER TO FEEL THAT EACH ONE IS UNIQUE AND SPECIAL SAID A FORMER DISNEY EXECUTIVE WHILE SOME RISKY MOVIES HAVE BEEN MADE MR MESTRES'S DIVISION HANDLED THE JOY LUCK CLUB LAST YEAR SOME PERHAPS NEVER SHOULD HAVE BEEN MADE AT ALL SAY THESE INDIVIDUALS HOLLYWOOD PICTURES WHICH WAS PARTLY SET UP SO THAT DISNEY COULD RETAIN BOTH MR MESTRES AND MR HOBERMAN IS EXPECTED TO CONTINUE UNDER A NEW CHIEF EXECUTIVE BUT ONE WHO WILL REPORT TO MR HOBERMAN INSTEAD OF MR KATZENBERG ONE UNEXPECTED NAME BEING MENTIONED FOR THE HOLLYWOOD POST IS MICHAEL LYNTON SENIOR VICE PRESIDENT OF DISNEY PUBLISHING IN NEW YORK MR HOBERMAN IS EXPECTED TO BE GIVEN AUTHORITY OVER HOLLYWOOD PICTURES AS WELL AS TOUCHSTONE AND A THIRD LABEL WALT DISNEY PICTURES TODAY MR MESTRES WILL MAKE FILMS FOR DISNEY UNDER A LONGTERM EXCLUSIVE ARRANGEMENT 9404280135 940428 GOODYEAR TO EXPAND CHAIN AKRON OHIO GOODYEAR TIRE & RUBBER CO SAID IT WILL EXPAND ITS JUST TIRES CHAIN OF RETAIL STORES BY MORE THAN 250 LOCATIONS OVER THE NEXT SEVERAL YEARS GOODYEAR CURRENTLY OPERATES 30 JUST TIRE STORES THAT SELL TIRES AND TIRERELATED SERVICES IN CHICAGO MEMPHIS TENN AND PHILADELPHIA THE EXPANSION STARTING NEXT MONTH IN LOS ANGELES WILL COME PRIMARILY THROUGH CONVERSION OF EXISTING GOODYEAR AUTO SERVICE CENTERS A SPOKESMAN SAID THE AUTO SERVICE CENTERS UNLIKE JUST TIRES OFFER AUTOMOTIVE SERVICE 9404280134 940428 WHO'S NEWS USLIFE'S CROSBY AGAIN HAS TITLE OF PRESIDENT IN LATEST JOB SHUFFLE NEW YORK USLIFE CORP'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER GORDON E CROSBY JR REASSUMED THE TITLE OF PRESIDENT AFTER RELINQUISHING IT FOR ONE YEAR EARLIER THIS MONTH THE INSURANCE HOLDING COMPANY SAID ROBERT J CASPER HAD STEPPED DOWN AS PRESIDENT A POSITION TO WHICH HE WAS NAMED LAST MAY MR CASPER WAS NAMED SENIOR VICE PRESIDENT OF MARKETING USLIFE HAS DECLINED TO ELABORATE ON THE MANAGEMENT SHUFFLES ALTHOUGH ANALYSTS NOTED THAT MR CROSBY HAS KEPT A TIGHT REIN AT THE TOP OF THE COMPANY HE HAS HEADED SINCE THE MID1960S MR CROSBY'S AGE WAS LISTED AS 73 IN THE LATEST PROXY STATEMENT MR CASPER LAST YEAR HAD BEEN NAMED PRESIDENT WHEN THE COMPANY ANNOUNCED IT WAS FORMING A FOURPERSON OFFICE OF THE CHAIRMAN USLIFE ALSO SAID MR CROSBY CONTINUES AS CHAIRMAN OF ALL USLIFE SUBSIDIARIES WILLIAM A SIMPSON WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THE COMPANY'S LIFE INSURANCE DIVISION WHICH IS COMPRISED OF FOUR WHOLLYOWNED SUBSIDIARIES MR SIMPSON IS A DIRECTOR OF THE PARENT COMPANY AND A MEMBER OF THE OFFICE OF THE CHAIRMAN MR SIMPSON WILL CONTINUE TO SERVE AS BOTH PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ALL AMERICAN LIFE INSURANCE CO A POSITION HE HAS HELD SINCE APRIL 1990 9404280133 940428 SCEPTRE RESOURCES STOCK CALGARY ALBERTA SCEPTRE RESOURCES LTD SAID IT AGREED TO SELL THREE MILLION COMMON SHARES IN CANADA ONLY FOR NET PROCEEDS OF ABOUT 405 MILLION CANADIAN DOLLARS US294 MILLION THE CALGARY OIL AND GAS PRODUCER SAID THAT UNDER ITS AGREEMENT WITH CANADIAN UNDERWRITERS SCOTIAMCLEOD INC RICHARDSON GREENSHIELDS OF CANADA LTD AND LEVESQUE BEAUBIEN GEOFFRION INC THE SHARES WILL BE PRICED AT C1406 EACH SCEPTRE SAID IT PLANS TO FILE A PRELIMINARY PROSPECTUS FOR THE OFFERING IN EACH CANADIAN PROVINCE SHORTLY THE COMPANY SAID THE PROPOSED OFFERING WILL INCREASE ITS SHARES OUTSTANDING BY 56 TO ABOUT 56 MILLION 9404280132 940428 REYNOLDS METALS SELLS PLANT RICHMOND VA REYNOLDS METALS CO SAID IT COMPLETED THE SALE OF ITS AUSTRIA DOSEN ALUMINUM BEVERAGE CAN PLANT IN ENZESFELD AUSTRIA TO PLM AB A PACKAGING COMPANY BASED IN SWEDEN TERMS WEREN'T DISCLOSED REYNOLDS PRODUCES ALUMINUM AND MAKES ALUMINUM FOIL AND OTHER PACKAGING PRODUCTS 9404280131 940428 WHO'S NEWS GRUBB & ELLIS CHIEF SCHWARTZ WILL LEAVE SAN FRANCISCO GRUBB & ELLIS CO SAID WILBERT SCHWARTZ WILL RELINQUISH HIS JOB AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OVER THE NEXT TWO MONTHS WHILE THE COMPANY SEEKS PERMANENT SENIOR MANAGEMENT MR SCHWARTZ WAS HIRED 14 MONTHS AGO TO RESTRUCTURE THE COMPANY AND TO TAKE CHARGE OF ITS DAYTODAY OPERATIONS SINCE THEN GRUBB & ELLIS SAID IT HAS DISPOSED OF UNDERPERFORMING BUSINESS UNITS SETTLED SEVERAL LAWSUITS RAISED 10 MILLION IN EQUITY CAPITAL AND RESTRUCTURED ITS AGREEMENT WITH ITS SOLE LENDER AND LARGEST SHAREHOLDER JOE HANAUER GRUBB & ELLIS'S CHAIRMAN SAID HE PLANNED TO ASSUME A MORE ACTIVE MANAGEMENT ROLE WHILE THE COMPANY SEARCHES FOR NEW SENIOR MANAGEMENT GRUBB & ELLIS SAID MR SCHWARTZ WILL REMAIN ON THE COMPANY'S BOARD 9404280130 940428 INTERNATIONAL RUSSIA ASSASSINATION SPURS LAWMAKERS TO SEEK INTERIOR MINISTER'S RESIGNATION BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW THE MURDER OF A RUSSIAN LAWMAKER HAS PROVOKED A FUROR WITHIN THE RUSSIAN GOVERNMENT WITH LAWMAKERS DEMANDING THE RESIGNATION OF INTERIOR MINISTER VIKTOR YERIN WHOSE OFFICE IS RESPONSIBLE FOR PUBLIC SECURITY THE UPROAR CAME IN THE FINAL HOURS BEFORE THE SCHEDULED SIGNING TODAY OF A CIVIC ACCORD SPONSORED BY PRESIDENT BORIS YELTSIN TO PROMOTE POLITICAL HARMONY THE TRAGEDY PLAYS INTO THE HANDS OF THE FORCES WHICH DO NOT CARE ABOUT THE COUNTRY AND WANT BLOOD AND POWER SAID PRIME MINISTER VIKTOR CHERNOMYRDIN THE MURDERED DEPUTY ANDREI AIZDERDZIS WAS ONE OF THE MORE OBSCURE MEMBERS OF THE LOWER HOUSE OF RUSSIA'S PARLIAMENT HE WAS A 36YEAROLD BANKER AND PUBLISHER BELONGING TO A MIDDLEOFTHEROAD PARLIAMENTARY FACTION HE WAS SHOT IN THE BACK WITH A HUNTING RIFLE TUESDAY NIGHT AT THE DOOR OF HIS HOME IN THE TOWNSHIP OF KHIMKI ON THE OUTSKIRTS OF MOSCOW POLICE SUSPECT IT WAS A CONTRACT KILLING ACCORDING TO THE INTERFAX RUSSIAN NEWS AGENCY IT ISN'T KNOWN WHO SHOT HIM OR WHY BUT WITH HIS DEATH MR AIZDERDZIS BECAME A SYMBOL OF THE RISING VIOLENCE IN WHICH ROUGHLY 30000 PEOPLE WERE MURDERED IN RUSSIA LAST YEAR SOME 5000 IN MOSCOW ALONE LEGISLATORS IN THE LOWER HOUSE OR DUMA BROKE OFF THEIR SESSION YESTERDAY MORNING TO MAKE A MASS PILGRIMAGE BY BUS TO THE SITE OF THE MURDER WHEN PARLIAMENT RECONVENED LATER IN THE DAY SOME LAWMAKERS SEIZED THE OCCASION TO DENOUNCE SOARING CRIME RATES AND PROMISE TOUGHER LEGISLATIVE MEASURES TO FIGHT CRIME DEPUTIES ALSO VOTED 239 TO 11 IN FAVOR OF DEMANDING THAT MR YERIN THE INTERIOR MINISTER RESIGN OVER HIS FAILURE TO CURB VIOLENCE A STATEMENT ISSUED YESTERDAY BY THE DUMA SAID THE GOVERNMENT'S FAILURE TO PROTECT CITIZENS JEOPARDIZES NOT ONLY THE LIFE OF PEOPLE BUT THE VERY EXISTENCE OF RUSSIAN STATEHOOD MR YERIN WHO LAST YEAR RECEIVED A MEDAL FROM MR YELTSIN FOR HIS ROLE IN THE OCTOBER ASSAULT ON THE FORMER PARLIAMENT SAID HE WAS WILLING TO RESIGN FOR THE BENEFIT OF RUSSIA AS OF LAST NIGHT MR CHERNOMYRDIN HADN'T ACCEPTED THE RESIGNATION SUSPICIONS ABOUT THE KILLER'S MOTIVE CENTER ON THEORIES THAT THE SHOOTING WAS INTENDED EITHER TO STIR UP POLITICAL DISCORD OR TO SETTLE A BUSINESS SCORE IN THE WORLD OF SOME 150 GANGS KNOWN COLLECTIVELY AS THE MAFIA AMONG THOSE FAVORING THE POLITICAL EXPLANATION IS PROMINENT PARLIAMENTARIAN SERGEI SHAKHRAI WHO TOLD INTERFAX THAT MR AIZDERDZIS'S MURDER WAS PART OF A TERRORIST CAMPAIGN OF CONTRACT KILLINGS AIMED BY GOVERNMENT OPPONENTS AT PROVOKING NEW CIVIL CLASHES OBSERVERS FAVORING THE MAFIA EXPLANATION NOTE THAT UNTIL HIS JANUARY ELECTION TO THE DUMA MR AIZDERDZIS WAS CHAIRMAN OF MDK BANK THE KIND OF JOB THAT IN RUSSIA TENDS TO ATTRACT STRONGARM TACTICS FROM MOBSTERS TRYING TO MUSCLE IN ON BUSINESS AT LEAST A DOZEN BANKERS WERE MURDERED IN 1993 ALONE IN WHAT POLICE DESCRIBE AS MAFIA HITS AS A PUBLISHER MR AIZDERDZIS HAD ALSO COURTED MOB ATTENTION HIS SMALL NEWSPAPER WHO'S WHO RECENTLY PUBLISHED A LIST NAMING 266 KINGS OF CRIME MR YELTSIN EXPRESSED REGRET OVER THE KILLING AND CALLED FOR PEOPLE TO UNITE IN THE CAUSE OF PEACE AND CALM BUT THE CIVIC ACCORD EXPECTED TO BE SIGNED IN THE KREMLIN TODAY BY 140 REPRESENTIVES OF RUSSIAN POLITICAL PARTIES MOVEMENTS AND STATE BODIES HAS NO POWERS OF ENFORCEMENT TO STOP THE CRIME THAT FOR MANY RUSSIANS RANKS AS ONE OF THEIR SOCIETY'S CHIEF PROBLEMS 9404280129 940428 WHO'S NEWS WYGOD DEPARTURE FROM RACE TO SUCCEED VAGELOS THROWS MERCK INTO UNCERTAINTY BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL MARTIN J WYGOD'S SURPRISE WITHDRAWAL FROM THE SUCCESSION RACE AT MERCK & CO THROWS THE PHARMACEUTICAL COMPANY INTO UNCERTAINTY AT A TIME WHEN STRONG LEADERSHIP IS MOST NEEDED IN THE MIDST OF INTEGRATING MEDCO CONTAINMENT SERVICES INC AS WELL AS ONE OF THE MOST TUMULTUOUS TIMES IN THE INDUSTRY'S HISTORY MERCK'S DIFFICULTY IN NAMING A SUCCESSOR TO ITS RETIRING CHAIRMAN P ROY VAGELOS IS DEMORALIZING THE COMPANY'S WORK FORCE AND GIVING INVESTORS THE JITTERS ANALYSTS AND OTHERS SAID DR VAGELOS DROPPED THE BOMBSHELL AT TUESDAY'S ANNUAL MEETING ANNOUNCING THAT MR WYGOD CHAIRMAN OF THE MEDCO UNIT HAD ADVISED THE BOARD THAT HE DOESN'T WANT TO BE CONSIDERED TO SUCCEED DR VAGELOS MERCK OFFICIALS WOULDN'T COMMENT ON MR WYGOD'S DECISION BUT ANALYSTS SPECULATED THAT MR WYGOD'S MOVE WASN'T ENTIRELY OF HIS OWN VOLITION MR WYGOD DECLINED TO COMMENT MR WYGOD WHO WAS WIDELY VIEWED AS DR VAGELOS'S HEIR APPARENT BUT NEVER PUBLICLY ANNOINTED OVERSEES TWOTHIRDS OF MERCK'S BUSINESS HIS RAPID RISE TO POWER IN MERCK MANAGEMENT HAS BEEN DISCONCERTING TO SOME HE JOINED MERCK WITH THE REST OF MEDCO CONTAINMENT WHICH MERCK BOUGHT FOR 66 BILLION LAST YEAR TO GET INTO THE BUSINESS OF MANAGING PRESCRIPTION BENEFITS FOR HEALTH PLANS AT THE TIME ANALYSTS AND OTHERS QUESTIONED WHETHER THE ENTREPRENEURIAL MR WYGOD OR EVEN MEDCO WOULD FIT WELL INTO THE MORE FORMAL CULTURE OF MERCK ANALYSTS SAID THE PEOPLE NOW IN THE RUNNING FOR MERCK'S TOP JOB ARE THE OTHER MEMBERS OF THE CHAIRMAN'S STAFF EDWARD M SCOLNICK MERCK'S RESEARCH HEAD JERRY T JACKSON A MARKETING EXECUTIVE VICE PRESIDENT JUDY C LEWENT THE CHIEF FINANCIAL OFFICER MARY M MCDONALD GENERAL COUNSEL AND FRANCIS H SPIEGEL JR AN EXECUTIVE VICE PRESIDENT ANALYSTS ALSO SAID THE BOARD MAY ASK DR VAGELOS TO STAY ON PAST HIS RETIREMENT DATE THIS FALL IT'S VERY POOR STRATEGY SIX MONTHS PRIOR TO THE EXPECTED RETIREMENT OF DR VAGELOS NOT TO HAVE ANNOUNCED A PLAN OF SUCCESSION SAID RONALD NORDMANN AN ANALYST AT PAINEWEBBER GROUP JOHN T W HAWKINS MANAGING DIRECTOR OF HEADHUNTER FIRM RUSSELL REYNOLDS ASSOCIATES SAID OTHER DRUG COMPANIES SUCH AS SMITHKLINE BEECHAM PLC AND SCHERINGPLOUGH CORP TYPICALLY NAME A SUCCESSOR WELL IN ADVANCE OF THE ACTUAL CHANGE BUT MR NORDMANN ADDED THAT MERCK'S BUSINESS STRATEGY IS CLEARLY SET AND IT'S DOUBTFUL THAT WHOEVER IS APPOINTED WOULD MATERIALLY CHANGE THAT GAME PLAN ANALYSTS SPECULATED THAT MERCK'S BOARD WAS WORRIED ABOUT A FLIGHT OF TOP EXECUTIVES AND RESEARCH MANAGERS OUT OF THE COMPANY THEY SAID TOP MERCK EXECUTIVES WERE UNHAPPY WITH MR WYGOD'S POWERFUL ROLE IN THE ORGANIZATION BEFORE MR WYGOOD'S DECISION AT LEAST ONE OF MERCK'S TOP EXECUTIVES WAS RUMORED TO BE ACTIVELY LOOKING FOR ANOTHER JOB WHICH WOULD HAVE DEALT A HEAVY BLOW TO MERCK'S MANAGEMENT AN ANALYST SAID TWO OTHER CHAIRMAN CANDIDATES LEFT LAST YEAR RICHARD MARKHAM CONSIDERED THE HEIR APPARENT QUIT MERCK IN JULY FOR PERSONAL REASONS AND SUBSEQUENTLY JOINED MARION MERRELL DOW INC AS PRESIDENT IN DECEMBER JOHN L ZABRISKIE ANOTHER MERCK EXECUTIVE VIEWED AS A CANDIDATE FOR THE CHAIRMANSHIP LEFT TO BECOME UPJOHN CO'S CHAIRMAN A MOVE THAT ANALYSTS SAID WAS THE RESULT OF MR WYGOD'S STRENGTHENING POSITION INSIDE MERCK IT WASN'T CLEAR TO PEOPLE WHETHER MR WYGOD'S WITHDRAWAL WAS VOLUNTARY OR NOT A MERCK SENIOR MANAGER SAID MR WYGOD'S RUNNING MERCK HAD EMOTIONAL APPEAL BUT HE'S NEVER RUN A LARGE ORGANIZATION THE MANAGER SAID ADDING THAT MR WYGOD ISN'T LIKELY TO REMAIN AT MERCK MERCK WOULDN'T SAY WHETHER MR WYGOD INTENDS TO STAY AS A MEMBER OF MERCK'S BOARD AND A LARGE SHAREHOLDER HE WOULD REMAIN A POWER WITHIN MERCK IF HE WERE TO STAY ANALYSTS NOTED 9404280128 940428 WHO'S NEWS CHESAPEAKE CORP'S PRESIDENT AND CEO IS ELECTED CHAIRMAN RICHMOND VA CHESAPEAKE CORP SAID 54YEAROLD J CARTER FOX PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS ELECTED CHAIRMAN OF THE PAPER AND PACKAGING COMPANY IN THE NEW POSITION HE SUCCEEDS STURE GORDON OLSSON 73 WHO RETIRED AFTER 26 YEARS AS CHAIRMAN ALSO ELECTED AS DIRECTOR WAS CHARLES ELIS OLSSON 29 YEARS OLD THE ELDER MR OLSSON'S SON WHO IS ASSISTANT TO THE PRESIDENT OF THE CHESAPEAKE PACKAGING CO SUBSIDIDARY MR FOX WHO WORKED A SUMMER WITH CHESAPEAKE AS A MAINTENANCE HELPER WHILE HE WAS IN COLLEGE JOINED THE COMPANY IN 1963 AS A PROJECT ACCOUNTANT HE WAS NAMED PRESIDENT AND CEO IN 1980 CHESAPEAKE WHICH PRODUCES TISSUE AND KRAFT PAPER PRODUCTS AND PACKAGING AMONG OTHER BUSINESSES HAS ANNUAL SALES OF 885 MILLION 9404280127 940428 BANKS MAY NEED TO SHARPLY CUT PROFITS CAPITAL DUE TO ACCOUNTING RULE ON CMOS BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BANKS MAY HAVE TO SHARPLY REDUCE THEIR PROFITS AND CAPITAL BECAUSE OF CONFLICTING ACCOUNTING RULES CONCERNING HOW THEY SHOULD VALUE COLLATERALIZED MORTGAGE OBLIGATIONS OR CMOS ACCOUNTANTS AND BANKERS SAY CMOS WHICH ARE SOPHISTICATED SECURITIES CREATED BY CARVING UP THE INTEREST AND PRINCIPAL PAYMENTS FROM POOLS OF HOME MORTGAGES ARE POPULAR INVESTMENTS FOR US BANKS WHICH CURRENTLY HOLD MORE THAN 208 BILLION OF THE SECURITIES ACCORDING TO BANKERS THE RECENT SHARP RISE IN INTEREST RATES MAY HAVE DEPRESSED THE VALUE OF THESE CMOS BY MORE THAN 45 OR MORE THAN 93 BILLION UNDER ACCOUNTING RULES ISSUED LAST YEAR BY THE FINANCIAL ACCOUNTING STANDARDS BOARD THE CHIEF RULEMAKING BODY FOR ACCOUNTANTS BANKS AND OTHER COMPANIES WOULD BE REQUIRED TO VALUE CERTAIN SECURITIES THAT ARE FREQUENTLY TRADED AND THOSE THAT WOULD BE SOLD PRIOR TO MATURITY AT CURRENT MARKET PRICES RATHER THAN AT THEIR INITIAL COST THE RULE WHICH TAKES EFFECT WITH 1994 FINANCIAL STATEMENTS COVERS CMOS UNDER THE FASB RULE UNREALIZED LOSSES AND GAINS IN CMOS HELD FOR SALE WOULD AFFECT A BANK'S CAPITAL FOR THOSE HELD FOR TRADING IT WOULD AFFECT PROFIT BANKS HAVE LONG SAID THEY INTEND TO HOLD A BIG PORTION OF THEIR CMOS TO MATURITY WHICH NOW RANGES FROM THREE TO SEVEN YEARS THOSE CMOS CAN BE VALUED AT THEIR INITIAL COST BUT BANKS MAY BE UNABLE TO VALUE CMOS AT THEIR INITIAL COST UNDER AN APRIL 15 POLICY STATEMENT BY THE FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL AN UMBRELLA RULEMAKING GROUP OF FEDERAL BANK REGULATING BODIES THE COUNCIL SAID REGULATORS CAN FORCE BANKS TO SELL HIGHRISK MORTGAGE SECURITIES SUCH AS CMOS THE STATEMENT IS PROMPTING SOME ACCOUNTING FIRMS TO VIEW MANY CMOS AS HIGHRISK SECURITIES THAT WOULD REQUIRE BANKS TO VALUE THOSE CMOS AT CURRENT MARKET PRICES THE IMPACT OF THE DISPARATE RULES MAY EXTEND TO HOME BUYERS SOME BANKERS SAY HALF OF THE 35 TRILLION IN MORTGAGES OUTSTANDING ARE SECURITIZED THAT IS WRAPPED INTO NEW TYPES OF COLLATERALIZED SECURITIES SUCH AS CMOS ESTIMATES BRIAN SMITH DIRECTOR OF POLICY FOR THE SAVINGS & COMMUNITY BANKERS OF AMERICA A TRADE GROUP OF 2000 BANKS IN WASHINGTON DC THE DISPARITY COULD SHARPLY REDUCE THE APPETITE OF BANKS FOR CMOS AND MAKE IT HARDER FOR FAMILIES TO OBTAIN LOWCOST MORTGAGES MR SMITH WARNS SEVERAL BANKERS SAY CONFUSION OVER WHETHER CMOS QUALIFY AS SECURITIES THAT CAN BE HELD TO MATURITY COULD FORCE THEM TO VALUE PORTIONS OF THEIR CMO HOLDINGS AT CURRENT VALUES THE MOVE WOULD REDUCE THE MONEY AVAILABLE FOR LOANS IF WE ADOPTED THE HIGH RISK' SCENARIO WE MIGHT HAVE TO RECOGNIZE UNREALIZED LOSSES ON OUR CMOS OF MILLIONS OF DOLLARS DURING FUTURE QUARTERS SAYS CARLOS MELLO FIRST VICE PRESIDENT AND CONTROLLER AT PEOPLE'S BANK IN BRIDGEPORT CONN THE DISPARATE RULINGS ARE CREATING A LOT OF CONFUSION SAYS JOSEPH SCLAFANI CONTROLLER OF CHEMICAL BANKING CORP WHICH HOLDS 54 BILLION IN CMOS HE SAID THE HOLDING COMPANY DOESN'T CONSIDER ITS CMO HOLDINGS HIGH RISK BECAUSE THEY HAVE A RELATIVELY SHORT FIVEYEAR MATURITY BUT THE DISPARITY BETWEEN THE TWO RULES IS CAUSING CHEMICAL BANK A UNIT TO HOLD CMOS OF SHORTER MATURITIES AND AVOID RISKIER TYPES OF CMOS MR SCLAFANI ADDS BERNARD BERKMAN EXECUTIVE VICE PRESIDENT OF COLLECTIVE BANCORP AN EGG HARBOR CITY NJ HOLDING COMPANY THAT RUNS COLLECTIVE FEDERAL SAVINGS BANK SAYS THAT THE DISPARITY WILL FORCE THE BANK TO BUY SHORTERMATURITY CMOS THIS COULD COST A FULL PERCENTAGE POINT YIELD ON THE BANK'S CMOS HE ESTIMATES GEORGE L ENGELKE JR PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ASTORIA FEDERAL SAVINGS ASSOCIATION LAKE SUCCESS NY SAYS IT DOESN'T USE THE HIGHRISK APPROACH IN VALUING THE BANK'S CMO HOLDINGS OF 16 BILLION IN LIGHT OF RECENT INTEREST RATE INCREASES THE HIGHRISK APPROACH WOULD HAVE LOWERED ASTORIA'S FIRSTQUARTER PROFIT BY 25 MILLION HE SAYS COLLECTIVE BANCORP'S MR BERKMAN SAYS THAT THE VILLAIN IN THIS CONFUSION IS THE FASB WHICH HAS ISSUED A RULE THAT LENDS ITSELF TO SUCH INTERPRETATIONS BY THE FEDERAL BANK REGULATORS BUT ROBERT WILKINS A FASB PROJECT MANAGER BLAMES THE FEDERAL BANKING REGULATORS THERE'S NO QUESTION THAT THE RECENT FEDERAL REGULATORS' RECENT POLICY STATEMENT HAS IMPAIRED A FINANCIAL INSTITUTION'S ABILITY TO HOLD A HIGHRISK MORTGAGE SECURITY TO MATURITY HE SAYS COUNCIL OFFICIALS WERE UNAVAILABLE FOR COMMENT YESTERDAY BECAUSE OF THE FEDERAL HOLIDAY FOR THE FUNERAL OF LATE PRESIDENT RICHARD NIXON 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 9404280126 940428 INTERNATIONAL RATES FALL ON MEXICO'S TREASURY CERTIFICATES MEXICO CITY RATES ON 28DAY MEXICAN TREASURY CERTIFICATES FELL 175 PERCENTAGE POINTS TO 1625 IN THIS WEEK'S AUCTION REVERSING AN UPWARD TREND THAT PUSHED YIELDS TO 18 LAST WEEK AND THREATENED FURTHER HARM TO THE AILING ECONOMY THE DECLINE IN YIELDS ON THE CERTIFICATES KNOWN AS CETES HELPED LIFT STOCK PRICES WITH THE BOLSA'S IPC INDEX RISING 213 THE PESO STRENGTHENED TO 325 A DOLLAR FROM 329 RATES FOR CERTIFICATES OF LONGER MATURITIES ALSO FELL MEXICO SLASHED THE SIZE OF THE AUCTION THIS WEEK IN AN EFFORT TO GUIDE DOMESTIC RATES LOWER WHILE FIRMING THE PESO THROUGH OTHER MEASURES XAVIER GUTIERREZ GUAJARDO HEAD OF RESEARCH AT MEXICAN BROKER PROBURSA EXPECTS RATES TO DECLINE FURTHER NEXT WEEK HE EXPECTS 28DAY CETES YIELDS TO EVENTUALLY DROP TO ABOUT 15 WHILE MAINTAINING THEIR ATTRACTION TO FOREIGN INVESTORS 9404280125 940428 IBM AIDE QUIT UNDER PRESSURE EXECUTIVES SAY CZARNECKI'S PACE ON LAYOFFS RESTRUCTURING IS CALLED TOO SLOW FOR CHAIRMAN BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GERALD CZARNECKI THE HIGHRANKING INTERNATIONAL BUSINESS MACHINES CORP EXECUTIVE WHO ABRUPTLY RESIGNED TUESDAY QUIT UNDER PRESSURE BECAUSE HE WASN'T MAKING FAST ENOUGH PROGRESS IN CUTTING THE WORK FORCE AND REMAKING IBM'S CULTURE ACCORDING TO INDUSTRY EXECUTIVES FAMILIAR WITH IBM MR CZARNECKI SAID IN AN INTERVIEW TUESDAY THAT HE WAS LEAVING AFTER SERVING LESS THAN A YEAR AS IBM'S HUMANRESOURCES CHIEF BECAUSE HE WANTED TO RUN HIS OWN COMPANY HE CALLED IT ONE OF THE STRANGEST THINGS I'VE EVER DONE MR CZARNECKI DECLINED FURTHER COMMENT YESTERDAY AS DID IBM BUT ACCORDING TO INDUSTRY EXECUTIVES IBM CHAIRMAN LOUIS GERSTNER JR WASN'T HAPPY WITH THE PACE OF MR CZARNECKI'S REFORMS IN ADDITION MR CZARNECKI HAD CLASHED FREQUENTLY IN RECENT MONTHS WITH THE OTHER TOP GERSTNER LIEUTENANT CHIEF FINANCIAL OFFICER JEROME B YORK OVER THE SPEED OF IBM'S RESTRUCTURING MR CZARNECKI'S MAIN TASK WAS TO OVERSEE CUTTING 35000 EMPLOYEES FROM IBM'S PAYROLL BY YEAR'S END A CRUCIAL STEP TOWARD MEETING IBM'S PROMISE TO WALL STREET THAT IT WILL TRIM COSTS BY 3 BILLION THIS YEAR IBM HOWEVER HAS CUT ONLY 3000 JOBS SO FAR THIS YEAR ON TOP OF 4000 LAYOFFS IT IMPOSED LATE LAST YEAR THE COMPANY THEREFORE HAS YET TO FIRE 28000 PEOPLE OR 80 OF THE GOAL IT HAD SET JULY WHEN IBM TOOK AN 89 BILLION PRETAX CHARGE TO MAKE THE REDUCTIONS THIS YEAR'S SALE OF ITS FEDERAL SYSTEMS DIVISION EASED OUT 10000 EMPLOYEES BUT IT ALSO DEPRIVED IBM OF THE DIVISION'S PROFIT AND MR GERSTNER HAS REITERATED PLANS TO REACH HIS EARLIER GOAL OF CUTTING 35000 JOBS THE LACK OF PROGRESS SO FAR RAISES QUESTIONS OF WHETHER IBM CAN MEET ITS COSTCUTTING TARGET OF 3 BILLION THIS YEAR WHICH IT MUST ACHIEVE IF IT IS TO DELIVER ON ITS STATED GOAL OF TURNING A PROFIT FOR ALL OF 1994 AN IBM SPOKESMAN SAID YESTERDAY THE COMPANY IS ON TRACK TO MEET ITS TARGETED REDUCTIONS MR GERSTNER HAD PROMISED HE WOULD END THE CHINESE WATER TORTURE THAT IBM HAD PREVIOUSLY IMPOSED ON ITS WORK FORCE ARGUING THE COMPANY'S PREVIOUS CUTBACK EFFORTS HAD BEEN TOO SMALL AND HAD RESULTED IN HAVING TO KEEP IMPOSING NEW ROUNDS OF REDUCTIONS BUT IBM EMPLOYEES HAVE COMPLAINED AS RECENTLY AS THE ANNUAL MEETING OF SHAREHOLDERS LAST MONDAY IN TORONTO THAT THE SLOWNESS IN EXECUTING THE NEW LAYOFFS IS HURTING MORALE AND THAT THE TORTURE HAS CONTINUED IN A RECENT INTERVIEW MR CZARNECKI CONCEDED THAT IBM WAS A HUGE AND VERY COMPLEX COMPANY THE CULTURE CHANGE WHICH HE WAS CHAMPIONING AS WELL AS THE CUTBACKS WASN'T HAPPENING OVERNIGHT IT WILL DEFINITELY TAKE LONGER THAN I THOUGHT HE SAID SOME OUTSIDE IBM WATCHERS SURMISED THAT MR CZARNECKI WAS BUMPING UP AGAINST BIG BLUE'S ENTRENCHED CULTURE WHICH HAS BEEN BATTERED BY RECENT YEARS OF LOSSES AND RETRENCHMENT IBM HAS SAID THAT THE ACTUAL LAYOFFS WOULD BE DONE ON A UNITBYUNIT BASIS AND IT WOULD BE UP TO THOSE MANAGERS TO MAKE THE CUTS YET MR CZARNECKI IN HIS SENIOR STAFF POST CAN'T DIRECTLY ORDER THE MANAGERS TO MAKE THE JOB CUTS THAT LED SOME IBM INSIDERS TO DOUBT THAT MR CZARNECKI IS BEING BLAMED FOR LAGGING BEHIND IN HIS EFFORT TO MEET THE NUMBERS THEY CONTEND THAT MR GERSTNER INSTEAD WOULD HAVE TURNED TO THE LINE MANAGERS TO FIND FAULT AND CUT THEIR INCENTIVE PAY OR FIRE THEM OTHER OBSERVERS HOWEVER SAID MR GERSTNER FEELS HE HAS LITTLE TIME TO WASTE INDEED EARLIER THIS YEAR BERNARD PUCKETT MR GERSTNER'S TOP STRATEGIST RESIGNED UNDER SIMILAR PRESSURE ACCORDING TO THOSE FAMILIAR WITH THE COMPANY RUMORS ARE RAMPANT THAT OTHER HIGHLEVEL DEPARTURES COULD BE IN THE WORKS FOR THE NEAR FUTURE 9404280124 940428 POLITICS & POLICY ELECTRONICS FIRMS GET PUSH FROM CLINTON TO JOIN INDUSTRIAL POLICY INITIATIVE IN FLATPANEL DISPLAYS BY BOB DAVIS AND G PASCAL ZACHARY STAFF REPORTERS OF THE WALL STREET JOURNAL THE CLINTON ADMINISTRATION WILL TAKE ITS DEEPEST PLUNGE INTO THE MURKY WATERS OF INDUSTRIAL POLICY TOMORROW AND IT'S INVITING THE US ELECTRONICS INDUSTRY TO DIVE IN BESIDE IT UNNERVED BY JAPAN'S DOMINATION OF THE 5 BILLION FLATPANEL DISPLAY MARKET THE ADMINISTRATION PLANS TO CREATE WITHIN FIVE YEARS A US INDUSTRY CAPABLE OF CRANKING OUT MILLIONS OF COMPUTER SCREENS ANNUALLY THE PENTAGON IS PROMISING TO SPEND AS MUCH AS 500 MILLION OVER A DECADE TO ENCOURAGE US COMPANIES TO BUILD FLATSCREEN FACTORIES IN ADDITION TO THE 100 MILLION ANNUALLY THE FEDERAL GOVERNMENT ALREADY SPENDS ON DISPLAY RESEARCH WE NEED TO ESTABLISH A BUSINESS BASE SAYS WHITE HOUSE ECONOMIC ADVISER BOWMAN CUTTER ADDING THAT THE US DID THE EARLY RESEARCH FOR FLATSCREEN DISPLAYS USED IN LAPTOP COMPUTERS THE IMMEDIATE RATIONALE FOR THE CLINTON ADMINISTRATION'S PUSH IS MILITARY GOVERNMENT OFFICIALS COMPLAIN THAT SHARP CORP OF JAPAN WHICH DOMINATES THE FLATSCREEN MARKET REFUSES TO SELL DIRECTLY TO THE US MILITARY OR PROVIDE IT WITH EARLY VERSIONS OF ITS PRODUCTS WHICH THE MILITARY NEEDS FOR A HOST OF SYSTEMS INCLUDING FIGHTER COCKPITS WARROOM DISPLAYS AND BATTLEFIELD COMPUTERS SOMEDAY SOLDIERS MAY EVEN BE DISPATCHED TO THE BATTLEFIELD WEARING HEADSETS WITH BUILTIN SCREENS WE'RE NOT IN THE BUSINESS OF PRODUCING PRODUCTS FOR WEAPONS SAYS STEVEN SEDAKER A US MANAGER FOR SHARP THE PENTAGON CONCLUDED THAT BECAUSE IT ONLY REPRESENTS ABOUT 5 OF THE MARKET IT DIDN'T HAVE THE CLOUT TO LEAD THE INDUSTRY SIMPLY BY ISSUING CONTRACTS FOR EQUIPMENT IT NEEDS THE APPROACH IT'S TAKEN WITH AEROSPACE TECHNOLOGIES A ROBUST US INDUSTRY HAS TO BE COAXED AND PRODDED INTO EXISTENCE TO MAKE SURE THE US FIGHTING FORCES CAN KEEP UP TECHNOLOGICALLY IT WAS DECIDED BUT THE FLATPANEL PROGRAM GOES WELL BEYOND THE MILITARY CLINTONITES ARE TRYING TO PUT TOGETHER A MODEL OF TECHNOLOGICAL DEVELOPMENT THAT WILL EQUIP US COMPANIES TO BREAK INTO MARKETS ALREADY SEIZED BY JAPANESE CONCERNS IF THE PLAN SUCCEEDS THE CLINTON ADMINISTRATION COULD APPLY THE LESSONS TO TECHNOLOGIES SUCH AS ELECTRONIC PACKAGING ROBOTICS CERAMICS AND PRECISION MACHINING WHERE JAPANESE FIRMS HAVE BIG LEADS DETAILS OF THE CLINTON PROGRAM WILL BE UNVEILED TODAY BY THE PENTAGON THE PLAN WILL OFFER INDUCEMENTS FOR COMPANIES TO INVEST 400 MILLION OR SO TO BUILD FLATSCREEN PRODUCTION FACILITIES CAPABLE OF TURNING OUT ONE MILLION TO TWO MILLION SCREENS APIECE THE ADMINISTRATION RULED OUT DIRECT SUBSIDIES TO BUILD FACTORIES WHICH WOULD VIOLATE AN INTERNATIONAL TRADE PACT INSTEAD THE PENTAGON PLANS TO MAKE RESEARCH AWARDS IN DISPLAY TECHNOLOGYBUT REQUIRE THAT COMPANIES COMMIT THEMSELVES TO BUILD FACTORIES BEFORE THEY CAN BID ON AN AWARD WE'RE FOCUSING OUR TECHNOLOGY AND FUNDS ON GUYS WHO ARE COMMITTED TO MOVING SYSTEMS INTO PRODUCTION SAYS AN ADMINISTRATION OFFICIAL JUST DOING R&D DOESN'T CUT IT FOR US THE GOVERNMENT IS OFFERING A HEFTY REWARD THE WINNING COMPANY OR GROUPS OF COMPANIES WOULD RECEIVE RESEARCH GRANTS EQUAL TO ABOUT 30 OF THE COST OF THE FACTORY OR ABOUT 120 MILLION OVER FIVE YEARS THE WINNERS THOUGH WOULD ALSO HAVE TO AGREE TO MATCH THE LEVEL OF GOVERNMENT SPENDING THOSE GOVERNMENT AWARDS WOULD PAY FOR RESEARCH IN NEXTGENERATION COMPUTER SCREENS THE PENTAGON PLANS TO STAGE WORKSHOPS ON ITS IDEA NEXT MONTH AND HOLD THE FIRST ROUND OF BIDS LATER THIS YEAR IN ALL THE PENTAGON PLANS FOUR ROUNDS OF BIDS DURING THE NEXT FIVE YEARS FOR GOVERNMENT RESEARCH FUNDS OF AS MUCH AS 480 MILLION BIG COMPANIES LIKE THE IDEA THOUGH SOME SMALLER FIRMS FEAR THE INDUSTRY GIANTS WILL GET THE LION'S SHARE OF THE FUNDING WE WOULD BE HIGHLY SUPPORTIVE AND ENTHUSIASTIC SAID MARK HOLCOMB A WASHINGTON SPOKESMAN FOR INTERNATIONAL BUSINESS MACHINES CORP INDUSTRY OBSERVERS SAY THAT IBM HAS PROPOSED TO THE PENTAGON THAT IT BE ALLOWED UNDER THE PROGRAM TO LICENSE TECHNOLOGY FROM ITS FLATPANEL JOINT VENTURE WITH TOSHIBA CORP IN JAPAN FOR USE IN AN ACTIVEMATRIX PLANT HERE OF COURSE THE PLAN COULD FALL PREY TO PORKBARREL POLITICS ALREADY THE PENTAGON'S FLATPANEL PROGRAM HAS BEEN PACKED WITH PORK OIS OPTICAL IMAGING SYSTEMS INC WON A 50 MILLION GRANT TO BUILD A SMALLSCALE FLATSCREEN TV FACTORY AFTER REP JOHN MURTHA D PENN WHO HEADS THE DEFENSE APPROPRIATIONS SUBCOMMITTEE HAD LANGUAGE INSERTED INTO A FUNDING BILL FAVORING THE COMPANY CONGRESSIONAL AIDES SAID OIS OPTICAL IMAGING IS A SUBSIDIARY OF GUARDIAN INDUSTRIES CORP IN NORTHVILLE MICH AS PART OF THE ADMINISTRATION'S NEW FLATPANEL PLAN THE PENTAGON INTENDS TO MAKE ANOTHER 50 MILLION AWARD FOR A SMALL FLATSCREEN PRODUCTION FACILITY THIS TIME THE WINNERS WILL BE A CONSORTIUM OF AT&T CORP XEROX CORP AND STANDISH INDUSTRIES INC ALL OF WHICH HAD BITTERLY COMPLAINED ABOUT THE AWARD TO OIS OPTICAL IMAGING THE FLATPANEL FIELD HAS BEEN AN INDUSTRIALPOLICY BATTLE GROUND SINCE THE 1970S BECAUSE US INDUSTRY ESSENTIALLY ABANDONED THE MANUFACTURE OF TVSCREEN TECHNOLOGY WITH THE RISE OF LAPTOP COMPUTERS FLATPANEL DISPLAYS SUDDENLY LOOMED AS CRITICAL TO THE COMPUTER INDUSTRY WHICH FOUND READY SUPPLIES FROM JAPANESE MANUFACTURERS SOME PREDICTED THAT THE LOSS OF FLAT PANELS WOULD LEAD TO THE COLLAPSE OF US CONTROL OF THE PERSONAL COMPUTER INDUSTRY THIS NEVER HAPPENED THOUGH US LAPTOP COMPUTERS INVARIABLY COME WITH JAPANESEMADE SCREENS XEROX HAS BOASTED OF ITS CAPABILITIES FOR YEARS BUT HAS ALWAYS LOOKED FOR OUTSIDE SOURCES OF FUNDING FOR A MANUFACTURING PLANT EVEN IF THE NEW PROGRAM CAN AVOID POLITICAL TRAPS IT'S FAR FROM CLEAR IT WILL BE A WINNER COMMERCIALLY LAWRENCE TANNAS A SPECIALIST IN FLATPANEL TECHNOLOGY SAYS IT'S INFEASIBLE FOR THE US TO CATCH UP TO JAPAN BECAUSE THE US IS ALREADY SO FAR BEHIND IT WOULD TAKE A BILLION PER YEAR FOR SEVERAL YEARS TO MATCH THE JAPANESE DISPLAY INDUSTRY ANOTHER PROBLEM IS THAT THE SOME OF THE US FUNDS COULD MERELY PASS THROUGH US COMPANIES TO JAPAN IN THE FORM OF LICENSING FEES PAID FOR TECHNOLOGIES CENTRAL TO FLATPANEL TECHNOLOGY STEPHEN KREIDER YODER CONTRIBUTED TO THIS ARTICLE 9404280123 940428 XEROX PROFIT DECLINED 32 IN 1ST QUARTER DOCUMENTPROCESSING UNIT IMPROVED SUGGESTING COST CUTS ARE WORKING BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL STAMFORD CONN XEROX CORP POSTED A 32 DROP IN FIRSTQUARTER PROFIT BUT ITS CORE DOCUMENTPROCESSING UNIT RECORDED SIGNIFICANT GAINS A SIGN THAT ITS AGGRESSIVE COSTCUTTING MOVES ARE WORKING THE BUSINESS MACHINE MAKER SAID EARNINGS FELL TO 129 MILLION OR 105 A SHARE FROM 189 MILLION OR 177 A SHARE A YEAR EARLIER THE 1993 QUARTER INCLUDED 77 MILLION IN PROFITS FROM DISCONTINUED OPERATIONS A ONETIME 17 MILLION TAX CREDIT AS WELL AS A 13 MILLION LOSS FROM INSURANCE OPERATIONS THE 1994 QUARTER INCLUDED A 2 MILLION LOSS FROM INSURANCE OPERATIONS XEROX'S REVENUE ROSE 1 TO 395 BILLION FROM 39 BILLION REVENUE FROM THE CORE DOCUMENT PROCESSING BUSINESS WHICH INCLUDES COPIERS ROSE 1 TO 327 BILLION FROM 323 BILLION EXCLUDING CURRENCY EFFECTS HOWEVER DOCUMENT PROCESSING REVENUE ROSE 5 XEROX SURPRISED SOME ANALYSTS BY REDUCING ITS WORK FORCE BY 4200 DURING THE QUARTER A MUCH LARGERTHANEXPECTED NUMBER THE JOB CUTS ARE PART OF A PLAN LAUNCHED IN DECEMBER TO SLASH XEROX'S WORK FORCE BY MORE THAN 10000 BY EARLY 1996 AND CLOSE AND CONSOLIDATE SOME FACILITIES THE COMPANY EXPECTS TO CUT AT LEAST 800 ADDITIONAL JOBS DURING 1994 XEROX'S PROFIT BEFORE TAXES JUMPED 18 TO 262 MILLION FROM 222 MILLION REFLECTING EMPLOYEE REDUCTION STRINGENT EXPENSE CONTROL AND IMPROVED EQUIPMENT SALES B ALEX HENDERSON AN ANALYST AT PRUDENTIAL SECURITIES INC SAID XEROX'S OPERATING MARGINS ROSE TO BETWEEN 6 TO 7 IN THE 1994 QUARTER FROM ABOUT 3 A YEAR AGO HE EXPECTS XEROX TO POST 7 TO 8 IN MARGINS IN THE SECOND QUARTER THIS IS THE BEST RATE OF IMPROVEMENT IN MARGINS I'VE EVER SEEN IN XEROX HE SAID THE COMPANY APPEARS TO BE CAPITALIZING ON ITS HIGHEND PRODUCTS WHICH TEND TO PROVIDE BETTER RETURNS XEROX HAS RECENTLY REALIGNED ITS WORK FORCE AND BENEFITED FROM A STRONG PORTFOLIO OF SOPHISTICATED PRODUCTS INCLUDING COPIERS AND A PUBLISHING SYSTEM MEANWHILE XEROX'S JAPANESE COMPETITORS ARE GETTING MANGLED BECAUSE OF EXCHANGE RATES MR HENDERSON SAID XEROX SAID IT WAS ENCOURAGED BY SIGNS OF IMPROVEMENT IN SOME EUROPEAN ECONOMIES MAINLY IN BRITAIN WHERE XEROX HAD DOUBLEDIGIT GROWTH IN FIRSTQUARTER REVENUE A YEAR AGO EUROPEAN RESULTS WERE HURT BY WEAK ECONOMIC CONDITIONS THE COMPANY ALSO REPORTED 61 MILLION IN FOREIGN CURRENCY LOSSES IN THE QUARTER UP FROM 23 MILLION A YEAR AGO WHICH WAS DUE TO ACCELERATING INFLATION AND DEVALUATION IN BRAZIL AS PART OF ITS PLAN TO EXIT THE FINANCIAL SERVICES BUSINESS XEROX SAID IT'S TALKING WITH A NUMBER OF PARTIES INTERESTED IN ACQUIRING ITS TALEGEN INSURANCE GROUPS 9404280122 940428 NBA AWARDS FRANCHISE TO VANCOUVER PARTNERSHIP NEW YORK THE NATIONAL BASKETBALL ASSOCIATION GRANTED A FRANCHISE FOR VANCOUVER BRITISH COLUMBIA THE SECOND CANADIAN CITY TO WIN A FRANCHISE THIS YEAR THE NBA AWARDED THE FRANCHISE TO VANCOUVER BASKETBALL LP A GROUP HEADED BY ARTHUR GRIFFITHS WHO ALSO OWNS THE VANCOUVER CANUCKS HOCKEY TEAM THE GROUP INCLUDES MR GRIFFITHS'S SISTER EMILY GRIFFITHSHAMILTON AND SEATTLE BUSINESSMEN JOHN AND BRUCE MCCAW DIRECTORS OF MCCAW CELLULAR COMMUNICATIONS INC THE GROUP MUST PAY A 125 MILLION FRANCHISE FEE THE VANCOUVER FRANCHISE FOLLOWS THE AWARDING OF A FRANCHISE TO A TORONTO GROUP THIS YEAR BOTH NEW TEAMS WILL BEGIN PLAY IN THE 199596 SEASON CONSTRUCTION OF A 120 MILLION STADIUM IN VANCOUVER FOR BASKETBALL AND HOCKEY IS UNDER WAY AND WILL BE READY FOR THE FIRST SEASON A SPOKESWOMAN FOR THE VANCOUVER GROUP SAID 9404280121 940428 LAW NEW YORK STATE SUES FOUR CAR RENTAL FIRMS FOR ALLEGED AGE BIAS NEW YORK NEW YORK'S ATTORNEY GENERAL FILED SUIT AGAINST FOUR MAJOR CAR RENTAL COMPANIES CLAIMING THAT THE FIRMS ILLEGALLY DISCRIMINATE AGAINST YOUNGER DRIVERS BY REFUSING TO RENT TO THEM THE SUIT FILED IN STATE SUPREME COURT IN MANHATTAN NAMES PARK RIDGE CORP'S HERTZ CORP GENERAL MOTORS CORP'S NATIONAL CAR RENTAL SYSTEM BEECH HOLDINGS CORP'S BUDGET RENT A CAR AND ALAMO RENT A CAR THE SUIT SEEKS TO PERMANENTLY BAR THE COMPANIES FROM REFUSING TO RENT TO DRIVERS FROM AGE 18 TO 25 HERTZ BUDGET AND ALAMO SAID THEY ARE IN COMPLIANCE WITH AGE BIAS LAW FOR CAR RENTAL AGENCIES AND WOULD CONTEST THE SUIT NATIONAL SAID IT BELIEVED IT WAS IN COMPLIANCE WITH THE LAW BUT HAD NO COMMENT ON THE SUIT A STATEMENT ISSUED BY HERTZ BUDGET AND ALAMO EARLIER THIS WEEK SAID THE DRIVERS DON'T MEET THEIR INSURANCE REQUIREMENTS G OLIVER KOPPELL NEW YORK'S ATTORNEY GENERAL SAID THAT SUFFICIENT INSURANCE COVERAGE IS AVAILABLE FOR YOUNGER DRIVERS AND ADDITIONAL COSTS CAN BE PASSED ON TO THE RENTERS THE ATTORNEY GENERAL'S OFFICE HAD NOTIFIED NINE CAR RENTAL COMPANIES THAT THEY WERE IN VIOLATION OF STATE AGE BIAS LAWS OFFICIALS ADDED THAT THE FOUR COMPANIES NAMED IN THE SUIT RESPONDED IN SUCH A WAY THAT THERE WAS NO CHOICE BUT TO SUE 9404280120 940428 LOAN PLANS FALL SHORT IN POSTRIOT LOS ANGELES BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES AS THIS CITY MARKS THE SECOND ANNIVERSARY OF THE START OF THE NATION'S WORST URBAN RIOT THIS CENTURY IT HAS BECOME CLEAR THAT ONE OF THE MAJOR STRATEGIES FOR RESPONDING TO LOCAL UNREST IS FAILING POLITICAL AND BUSINESS LEADERS HAD PROCLAIMED THEIR INTENT TO CREATE JOBS IN SOUTH CENTRAL LOS ANGELES BY INFUSING MINORITYOWNED SMALL BUSINESSES WITH CAPITAL BUT AFTER 24 MONTHS FEW APPEAR TO HAVE BENEFITED PRACTICALLY NO NEW EQUITY CAPITAL HAS EMERGED TO FUEL SMALL BUSINESS IN SOUTH CENTRAL SOME 380 MILLION IN POSTRIOT LENDING HAS BEEN PLEDGED BUT ALMOST ALL OF THAT IS EARMARKED SIMPLY TO REBUILD WHAT WAS DESTROYED ONLY ABOUT 22 MILLION IS INTENDED TO SPUR GROWTH AMONG THE 55000 SMALL BUSINESSES LOCATED IN TARGET AREAS AND MUCH OF THAT MONEY HAS YET TO BE LENT THE PAUCITY OF HELP FOR SMALL BUSINESSES FOLLOWING THE RIOTING LOOKS EVEN WORSE IN LIGHT OF THE GRANDIOSE INITIAL PROMISES OF HELP FOR INSTANCE NATIONAL POLITICAL LEADERS PLEDGED MORE THAN 12 BILLION OF AID MOST OF WHICH HAS YET TO MATERIALIZE FEDERAL GOVERNMENT OFFICIALS SAY THAT 600 MILLION OF THAT SUM WASN'T A LOAN FUND AT ALL AND THAT LOCAL RESIDENTS SIMPLY MISINTERPRETED AN OFFER BY THE FEDERAL HOME LOAN BANK TO MAKE MONEY AVAILABLE TO ITS MEMBER BANKS AT ABOUT 15 BELOW PRIME IT WAS STILL UP TO THE BANKS OFFICIALS SAY TO MAKE INDEPENDENT LOAN DECISIONS BASED ON STRICT CRITERIA THAT DIDN'T CHANGE AFTER THE RIOT WE WERE LIED TO SAYS MARK WHITLOCK WHO RUNS A 13 MILLION MICROLOAN PROGRAM FOR FIRST AME CHURCH A MAJOR POLITICAL FORCE IN LOS ANGELES THERE WAS ALSO A MISMATCH OF EXPECTATIONS BETWEEN LENDERS AND POTENTIAL BORROWERS MINORITY SMALLBUSINESS OWNERS SAY THAT LENDERS CONTINUE TO APPLY CRITERIA THAT OFTEN WORK AGAINST BUSINESSES THAT OPERATE IN ECONOMICALLY DEPRESSED AREAS IF YOU DON'T NEED HELP YOU CAN GET IT SAYS STEPHEN L MCGLOVER BITTERLY THE 43YEAROLD MR MCGLOVER FREELY ADMITS HE AND HIS COMPANY OASIS OFFICE PRODUCTS NEED HELP THE BLACK BUSINESS OWNER SAYS HIS 15YEAROLD COMPANY HAS A BURDENSOME DEBT LOAD 105000 IN ACCUMULATED LOSSES OVER THE PAST THREE YEARS AND A WORK FORCE THAT HAS SHRUNK TO SIX FROM A HIGH OF 16 MR MCGLOVER FIGURES THAT IF HE COULD JUST GET A LOAN FOR ABOUT 250000 HE COULD RETIRE EXISTING HIGHERINTEREST DEBT OF 100000 AND HAVE EXPANSION CAPITAL LEFT OVER THEN OASIS COULD FINANCE MORE INVENTORY AND BID ON BIGGER CONTRACTS MR MCGLOVER SAYS HE BELIEVES THAT WITH THE NEW CAPITAL THE COMPANY COULD RETURN TO PROFITABILITY AND HIRE NEW WORKERS CURRENT ANNUAL REVENUE FOR THE COMPANY IS ABOUT 12 MILLION BUT MR MCGLOVER'S LOAN APPLICATIONS HAVE BEEN TURNED DOWN BY MORE THAN HALF A DOZEN BANKS INCLUDING FOUNDERS NATIONAL BANK THE ONLY BLACKOWNED COMMERCIAL BANK IN TOWN HE ALSO TRIED WITHOUT SUCCESS TO TAP A SPECIAL LOAN FUND SET UP UNDER THE AUSPICES OF REBUILD LOS ANGELES THE OFFICIAL RIOTRECOVERY ORGANIZATION MR MCGLOVER SAYS THE BANKS TOLD HIM HE HAD TOO MUCH DEBT AND NO EARNINGS AND THUS WAS DEEMED A BAD CREDIT RISK THE RLA FUND SAYS HIS REQUEST WAS ESSENTIALLY A DEBT RESTRUCTURING AND ITS FUNDS WERE INTENDED SOLELY FOR EXPANSION MAYBE THEY DON'T THINK WHAT I'M DOING IS WORTHWHILE SAYS A FRUSTRATED MR MCGLOVER ADDING THAT A SHORTAGE OF WORKING CAPITAL IS THREATENING A 500000 SUPPLY CONTRACT HE HAS WITH ROCKWELL INTERNATIONAL CORP MILTON L WOMACK 47 COOWNER OF WOMACK INTERNATIONAL WAS ALSO TURNED DOWN BY RLA'S LOAN FUND AS WELL AS SEVERAL BANKS HIS COMPANY WHICH PROVIDES VOICE MAIL AND ELECTRONIC FAX SERVICES HAS BEEN IN BUSINESS SINCE 1984 BUT RECENTLY NEEDED TO COMPLETELY REVAMP ITS LARGELY OBSOLETE TELECOMMUNICATIONS EQUIPMENT THE CHANGE WAS BIG ENOUGH THAT LENDERS LOOKED AT HIS BUSINESS AS A VIRTUAL STARTUP AND SHIED AWAY FROM IT SAYS MR WOMACK WHO IS BLACK MELVIN BELL CHIEF CREDIT OFFICER OF THE RLA LOAN FUND SAYS THAT WHILE THE FUND WAS SET UP TO MAKE RISKIER LOANS THAN BANKS MIGHT MAKE IT AIMS TO GET MONEY TO SOLID BUSINESSES WITH GROWTH POTENTIAL SO FAR THE 63 MILLION RLA LOAN FUND HAS RECEIVED 70 APPLICATIONS TURNED DOWN 45 AND FUNDED SEVEN FOR A TOTAL OF 14 MILLION THE REMAINING 18 APPLICATIONS ARE PENDING EVEN THOUGH WE ARE ONLY A BANDAID SOLUTION SAYS MR BELL WE CAN SHOW THE BANKS THAT LENDING TO THESE BUSINESSES CAN BE PROFITABLE THAT THEY CAN MAKE COLLECTIBLE LOANS ELLIS GORDON JR SENIOR VICE PRESIDENT OF FOUNDERS BANK SAYS HIS INSTITUTION CAN'T LEND MONEY TO JUST ANY BLACK BUSINESS SIMPLY BECAUSE THE BANK IS BLACKOWNED AFTER ALL IS SAID AND DONE WE HAVE TO BE PROFITABLE TO STAY IN BUSINESS SAYS MR GORDON ONE OF THE BEST THINGS WE CAN DO FOR THE COMMUNITY IS STAY AROUND AWHILE CURRENTLY THREEYEAROLD FOUNDERS HAS ABOUT 19 MILLION IN LOANS OUT TO SOME 300 BUSINESSES FOR 37YEAROLD BYRON M JAMERSON AND HIS NEIGHBORHOOD BEVERAGE CORP THE PROBLEM IS LACK OF EQUITY NEIGHBORHOOD BEVERAGE FORMED HERE IN OCTOBER 1992 BY MR JAMERSON AND HIS BROTHER CALVIN 45 HAS A DETAILED BUSINESS STRATEGY FOR SETTING UP A BOTTLING PLANT IN SOUTH CENTRAL LOS ANGELES THAT WOULD PRODUCE A LINE OF FLAVORED SOFT DRINKS AND EMPLOY 250 LOCAL RESIDENTS WHEN THE COMPANY TOOK JOB APPLICATIONS LAST YEAR SOME 1300 PEOPLE LINED UP THE BROTHERS WHO ARE BLACK HAVE OBTAINED AN OPTION ON A CLOSED 7UP BOTTLING PLANT AND OBTAINED TENTATIVE ORDERS FOR SEVEN MILLION CASES OF THEIR PRODUCTS FROM GROUPS REPRESENTING KOREANAMERICAN GROCERS HERE AND IN NEW YORK RECENTLY LOS ANGELES LAKERS STAR FORWARD JAMES WORTHY MADE A 60000 INVESTMENT WHEN THE PROJECT WAS TEETERING ON THE BRINK OF COLLAPSE NOW THERE ARE GLIMMERS OF HOPE THAT 5 MILLION IN VENTURE CAPITAL IS IN THE PIPELINE WHICH THE JAMERSONS ANTICIPATE WILL TRIGGER A COMMITMENT FOR 32 MILLION IN GOVERNMENT REVENUE BOND FINANCING BUT AFTER A YEAR AND A HALF OF FRUSTRATION THE JAMERSONS ARE CAUTIOUS IT SEEMS THE BANKS AND OTHER LENDING SOURCES LACK EITHER THE CAPITAL OR THE CREATIVITY TO FIGURE OUT THAT WE CAN GET FINANCING AND PAY THEM BACK SAYS THE YOUNGER MR JAMERSON DANNY J BAKEWELL A LOCAL DEVELOPER AND COMMUNITY ACTIVIST SAYS THE CYCLE OF DASHED HOPES IS LIKELY TO CREATE MORE CIVIL UNREST IN THE FUTURE THE MORE PEOPLE FEEL HOPELESS THE MORE THEY FEEL WHAT HAPPENED APRIL 29 WAS JUSTIFIED MR BAKEWELL SAYS HE ADDS THAT POLITICAL AND BUSINESS LEADERS DON'T WANT TO DO ANYTHING AND WORSE THEY DON'T WANT TO ACKNOWLEDGE THAT NOTHING HAS BEEN DONE 9404280119 940428 P&G FISCAL 3RDPERIOD NET FELL 4 AFTER BIG CHARGE TO CLOSE OUT SWAPS BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PROCTER & GAMBLE CO REPORTED A 4 DROP IN NET INCOME FOR ITS FISCAL THIRD QUARTER REFLECTING AN EXPECTED 157 MILLION PRETAX CHARGE TO CLOSE OUT RISKY INTERESTRATE SWAP CONTRACTS EXCLUDING THE CHARGE THE CINCINNATI CONSUMERPRODUCTS COMPANY POSTED A 16 INCREASE IN PROFIT ANALYSTS SAID P&G'S COSTCUTTING PROGRAM BEGUN LAST JULY 13000 JOB CUTS AND 30 PLANT CLOSINGS IS STARTING TO PAY OFF IN HIGHER PROFIT MARGINS AND OPERATING EARNINGS HOWEVER SEVERAL ANALYSTS SAID THEY WERE SLIGHTLY DISAPPOINTED BY DOLLAR SALES WHICH INCREASED 12 BELOW THE 25 TO 3 IMPROVEMENT THEY HAD FORECAST P&G SAID SALES WERE HURT BY NEGATIVE FOREIGN CURRENCY TRANSLATIONS AMONG OTHER FACTORS FOR THE QUARTER ENDED MARCH 31 P&G REPORTED NET INCOME OF 482 MILLION OR 66 CENTS A SHARE REFLECTING THE 157 MILLION PRETAX CHARGE WHICH WAS 102 MILLION AFTER TAXES SALES WERE 744 BILLION THAT COMPARES WITH YEARAGO NET INCOME OF 502 MILLION OR 70 CENTS A SHARE ON SALES OF 735 BILLION SEPARATELY P&G HAS REASSIGNED VICTORIA TYLMAN A DIRECTOR IN ITS TREASURY DEPARTMENT WHO OVERSAW THE TWO LEVERAGED INTERESTRATE SWAPS THAT STARTED TO BLEED WHEN US AND GERMAN INTEREST RATES BEGAN RISING MS TYLMAN COULDN'T BE REACHED FOR COMMENT A P&G SPOKESWOMAN CONFIRMED THE MOVE BUT WOULDN'T ELABORATE MOREOVER A LOWERLEVEL TREASURYSTAFF MEMBER WHO REPORTED TO MS TYLMAN AND DEALT DIRECTLY WITH BANKERS TRUST NEW YORK CORP P&G'S DERIVATIVES DEALER HAS RESIGNED OVER THE LOSS P&G ALSO ACKNOWLEDGED EARLIER THIS MONTH WHEN P&G ANNOUNCED THE CHARGE THE COMPANY SAID IT HAD REASSIGNED TREASURER RAYMOND D MAINS WHO HAD OVERALL RESPONSIBILITY FOR THE COMPANY'S SWAPS PORTFOLIO PLACING HIM ON SPECIAL ASSIGNMENT TO THE CHIEF FINANCIAL OFFICER P&G SAID IT CONTINUES TO WEIGH LEGAL OPTIONS INVOLVING BANKERS TRUST A PERSON CLOSE TO P&G SAID THE COMPANY IS CONSULTING WITH OUTSIDE ATTORNEYS AND INVESTMENT BANKS ABOUT A POTENTIAL CASE AND P&G AND BANKERS TRUST ARE HAVING A DIALOGUE ABOUT THE MATTER BANKERS TRUST CHAIRMAN CHARLES SANFORD SAID AT THE COMPANY'S ANNUAL MEETING LAST WEEK THAT WE HAVE NO LEGAL OR ETHICAL LIABILITY IF THEY SUE WE'RE CONFIDENT WE'D WIN WHILE P&G HAS DECLINED TO GIVE DETAILS ABOUT THE SWAPS THE PERSON CLOSE TO THE COMPANY SAID ONE SWAP HAD A FACE VALUE OF 200 MILLION AND WAS BASED ON US INTEREST RATES THE OTHER HAD A FACE VALUE OF 50 MILLION BASED ON GERMAN INTEREST RATES BUT UNLIKE MOST SWAP AGREEMENTS IN WHICH THE FACE VALUE EXAGGERATES THE AMOUNT THAT'S ACTUALLY SWAPPED IN THIS CASE THE FACE VALUE OF EACH SWAP UNDERSTATED THE RISK TO P&G THAT'S BECAUSE THE PAYMENT STREAMS EXCHANGED WERE MULTIPLIED BY 10 CREATING A HIGHLY VOLATILE INSTRUMENT DERIVATIVES ARE FINANCIAL AGREEMENTS WHOSE VALUE IS LINKED TO OR DERIVED FROM THE PERFORMANCE OF SOME UNDERLYING ASSET SUCH AS BONDS CURRENCIES OR COMMODITIES AN INTERESTRATE SWAP IS A POPULAR FORM OF DERIVATIVE THAT IS DESIGNED TO ALLOW ITS HOLDER TO HEDGE AGAINST INTERESTRATE FLUCTUATIONS UNLIKE MOST SWAPS P&G'S SOCALLED LEVERAGEDSWAP TRANSACTIONS ARE PARTICULARLY RISKY BECAUSE LOSSES RESULTING FROM RISING INTEREST RATES ARE MULTIPLIED AS FOR THE QUARTER THE MAKER OF SUCH BRANDS AS TIDE LAUNDRY DETERGENT CREST TOOTHPASTE AND PAMPERS DISPOSABLE DIAPERS HAD OVERALL UNITVOLUME GROWTH OF 3 IN THE US AND 10 OUTSIDE THE US IN THE COMPANY'S DIAPER BUSINESS WORLDWIDE UNIT VOLUME INCREASED 5 IN A STATEMENT P&G CHAIRMAN EDWIN L ARTZT DESCRIBED THE MARCH 31 PERIOD AS STRONG CITING OUR COSTREDUCTION PROGRAMS ALONG WITH SOLID UNIT VOLUME GAINS IN THE US AND A CONTINUED DOUBLEDIGIT VOLUME GROWTH RATE IN OUR INTERNATIONAL OPERATIONS 9404280118 940428 AGCO CORP TO ACQUIRE MASSEY FERGUSON FROM VARITY WITH 328 MILLION DEAL BY EMORY THOMAS JR AND WENDY BOUNDS STAFF REPORTERS OF THE WALL STREET JOURNAL AGCO CORP SAID IT AGREED TO ACQUIRE MASSEY FERGUSON GROUP LTD FROM VARITY CORP IN A TRANSACTION VALUED AT ABOUT 328 MILLION UNDER TERMS OF THE TRANSACTION AGCO WILL PAY 310 MILLION IN CASH AND 500000 SHARES OF ITS COMMON STOCK FOR THE TRACTOR MANUFACTURING AND DISTRIBUTION CONCERN THE DEAL WILL MORE THAN DOUBLE THE SIZE OF AGCO TO ABOUT 15 BILLION IN SALES GIVING THE ACQUISITIVE FARMEQUIPMENT COMPANY A GLOBAL PRESENCE FOR THE FIRST TIME IN TRADING TUESDAY ON THE NEW YORK STOCK EXCHANGE AGCO CLOSED AT 36625 UP 1375 GIVING THE 500000 SHARES AN INDICATED VALUE OF ABOUT 18 MILLION MARKETS WERE CLOSED YESTERDAY ROBERT J RATLIFF CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ATLANTABASED AGCO ACKNOWLEDGED THE SALE PRICE IS ABOVE BOOK VALUE BUT HE SAID EARNINGS WOULDN'T SUFFER AS A RESULT THE DEAL WILL BE ACCRETIVE FROM THE BEGINNING HE SAID FOR VARITY BASED IN BUFFALO NY THE TRANSACTION PROVIDES AN OPPORTUNITY TO REFOCUS ON ITS AUTOMOTIVE BRAKE AND DIESELENGINE BUSINESSES WHICH COMPRISED 68 OF VARITY'S 27 BILLION OF REVENUE IN 1993 AND 96 OF ITS 142 MILLION OPERATING PROFIT AS A RESULT OF THE ANNOUNCEMENT MOODY'S INVESTORS SERVICE INC PLACED VARITY UNDER REVIEW FOR A POSSIBLE UPGRADE IN ITS LONGTERM DEBT RATING ACCORDING TO MR RATLIFF THE PREMIUM AGCO IS PAYING REPRESENTS THE VALUE OF THE MASSEY FERGUSON TRADEMARK WITH 1993 SALES OF 898 MILLION MASSEY FERGUSON HOLDS ABOUT 20 OF THE WORLD'S TRACTOR MARKET HE SAID THROUGH ITS PLANTS IN ENGLAND AND FRANCE MASSEY FERGUSON MAKES ABOUT 20000 TRACTORS A YEAR CURRENTLY AGCO MAKES AND DISTRIBUTES A WIDE RANGE OF FARM EQUIPMENT SELLING SUCH ITEMS AS COMBINES TRACTORS AND PLANTERS THROUGH SOME 2600 DEALERS IN NORTH AMERICA THE MASSEY FERGUSON UNIT WILL EXPAND AGCO'S DISTRIBUTION CHANNELS TO THOUSANDS MORE DEALERS IN 140 DIFFERENT COUNTRIES AGCO PLANS TO USE THOSE CHANNELS TO DISTRIBUTE ALL ITS PRODUCTS IN SOME CASES ADDING THE MASSEY FERGUSON LOGO TO PRODUCTS PREVIOUSLY MARKETED UNDER DIFFERENT NAMES THE MASSEY FERGUSON DEAL WHICH MR RATLIFF SAID HAD BEEN IN THE WORKS SINCE LATE LAST YEAR REPRESENTS THE LATEST IN A SERIES OF ACQUISITIONS BY AGCO IN JANUARY FOR INSTANCE THE COMPANY PURCHASED WHITENEW IDEA A FARMEQUIPMENTATTACHMENT MAKER FROM ALLIED PRODUCTS CORP CHICAGO FOR 57 MILLION IN JANUARY 1993 AGCO BEGAN ITS DEALINGS WITH VARITY BY PURCHASING THE NORTH AMERICAN DISTRIBUTION RIGHTS FOR MASSEY FERGUSON FOR 90 MILLION AS WELL AS A 50 STAKE IN AGRICREDIT ACCEPTANCE CORP A FINANCE CONCERN AGCO HAS SINCE ACQUIRED THE BALANCE OF THAT COMPANY VARITY SAID IT ENTERTAINED SEVERAL OFFERS TO BUY THE MASSEY FERGUSON UNIT BUT OPTED FOR AGCO BECAUSE THE TOTALITY OF THE OFFER WAS THE BEST ANOTHER KEY FACTOR WAS VARITY'S CONTINUING RELATIONSHIP WITH MASSEY FERGUSON'S BUYER VARITY'S PERKINS ENGINES ARE INSTALLED IN MOST MASSEY FERGUSON TRACTORS MR RATLIFF SAID ROGER CLARKE A VARITY VICE PRESIDENT DECLINED TO SAY WHETHER AGCO'S MONEY OFFER WAS THE HIGHEST COMMENTING ONLY THAT CASH ON THE TABLE WASN'T THE ONLY THING VARITY SOUGHT 9404280117 940428 GM NONAUTO UNITS POST 78 RISE IN 1STPERIOD PROFIT BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE COMBINED EARNINGS OF GENERAL MOTORS CORP'S NONAUTOMOTIVE SUBSIDIARIES ROSE 78 IN THE FIRST QUARTER TO 6398 MILLION DESPITE LOWER PROFITS AT THE COMPANY'S FINANCE ARM GM WILL REPORT ITS OVERALL FIRSTQUARTER RESULTS TODAY AND ANALYSTS LOOK FOR GM TO REPORT FIRSTQUARTER EARNINGS OF 11 BILLION TO 147 BILLION OR 150 TO 170 A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 513 MILLION OR 42 CENTS A SHARE THE ANALYSTS' ESTIMATE FOR GM'S MOST RECENT QUARTER INCLUDE THE 758 MILLION CHARGE THAT GM SAID IT WOULD TAKE IN THE FIRST QUARTER TO REFLECT THE COST OF DISABILITY AND CERTAIN OTHER EMPLOYEE BENEFITS THE LATEST FIRSTQUARTER RESULTS FOR THE FINANCE ARM GENERAL MOTORS ACCEPTANCE CORP GM HUGHES ELECTRONICS CORP AND ELECTRONIC DATA SYSTEMS CORP COMPARE WITH YEAREARLIER CUMULATIVE EARNINGS OF 5937 MILLION ONLY GMAC REPORTED A DECLINE IN PROFIT THE AUTO MAKER'S FINANCING OPERATIONS EARNED 217 MILLION IN THE FIRST QUARTER DOWN 24 FROM YEAREARLIER EARNINGS OF 284 MILLION THE LATEST QUARTER INCLUDED A 7 MILLION CHARGE RELATED TO RETIREE BENEFITS THE LOWER PROFIT ALSO REFLECTS GMAC'S EFFORTS SINCE 1992 TO SCALE BACK ITS COMMERCIALPAPER BORROWING AS ITS DEBT RATINGS DECLINED REFLECTING POOR PARENTCOMPANY PERFORMANCE GMAC'S SERVICED ASSETS STOOD AT 95 BILLION ON MARCH 31 DOWN 86 FROM 1039 BILLION A YEAR EARLIER SEPARATELY GM NAMED E FOLLIN SMITH 34 YEARS OLD FORMERLY TREASURER OF GM CANADA TO BE GMAC'S VICE PRESIDENT IN CHARGE OF FINANCE SHE SUCCEEDS FRITZ HENDERSON 35 WHO HAD PREVIOUSLY BEEN NAMED EXECUTIVE IN CHARGE OF GM'S AUTOMOTIVE COMPONENTS GROUP WORLDWIDE UNIT MEANWHILE GM HUGHES POSTED A 59 SURGE IN FIRSTQUARTER EARNINGS TO 2511 MILLION OR 70 CENTS A SHARE UP FROM 1583 MILLION OR 47 CENTS A SHARE THE MOST RECENT QUARTER INCLUDED AN AFTERTAX CHARGE OF 304 MILLION OR EIGHT CENTS A SHARE RELATED TO RETIREE BENEFITS EDS REPORTED A 13 JUMP TO 1717 MILLION OR 36 CENTS A SHARE UP FROM 1514 MILLION OR 32 CENTS A SHARE 9404280116 940428 3M POSTS 72 DROP IN 1STPERIOD NET BUT OPERATING PROFIT TOPPED FORECASTS BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL MINNESOTA MINING & MANUFACTURING CO'S FIRSTQUARTER EARNINGS TOPPED ANALYSTS' EXPECTATIONS A HINT THAT THE US INDUSTRIAL ECONOMY IS MORE ROBUST THAN WALL STREET HAD THOUGHT THE DIVERSIFIED MANUFACTURER HAD NET INCOME OF 306 MILLION OR 72 CENTS A SHARE OFF 72 FROM THE YEAREARLIER 330 MILLION OR 75 CENTS A SHARE SALES ROSE 33 TO 363 BILLION FROM 352 BILLION THE LATEST PERIOD'S NET WAS MARRED BY A PRETAX CHARGE OF 35 MILLION OR FIVE CENTS A SHARE RELATED TO A SETTLEMENT OF SILICONE BREASTIMPLANT LITIGATION EXCLUDING THE CHARGE PERSHARE EARNINGS WOULD HAVE BEEN 77 CENTS A SHARE ANALYSTS EXPECTED 74 CENTS A SHARE BECAUSE OTHER COMPANIES USE 3M'S ABRASIVES AND ADHESIVES TO PRODUCE ENDPRODUCTS THE ST PAUL MINN COMPANY'S EARNINGS ARE VIEWED AS A BELLWETHER OF THE US ECONOMY OPERATING INCOME FOR 3M'S US OPERATIONS ROSE 13 WITH ALL THREE OF ITS BUSINESS SECTORS CONTRIBUTING TO THE INCREASE 3M SAID SALES ROSE 7 ON A VOLUME BASIS MATCHING THE GROWTH IN THE YEAREARLIER PERIOD AND EXCEEDING THE 5 INCREASE MANY ANALYSTS HAD BEEN EXPECTING THAT VOLUME GROWTH WAS EXTREMELY ENCOURAGING FOR THE COMPANY SAID JAMIE KIGGEN A SENIOR ANALYST WITH PRUDENTIAL SECURITIES FROM A US ECONOMY STANDPOINT AS MUCH AS ONE CAN INTERPRET 3M'S RESULTS AS A PROXY FOR US ECONOMIC PERFORMANCE THE ANALYST SAID MANY DIFFERENT INDUSTRIES SEEM TO BE SHOWING SIGNS OF STRENGTH ABOUT HALF 3M'S SALES COME FROM THE US MARKET THERE SOFTER PRICES HELD THE GAIN ON SALES ON A DOLLAR BASIS TO 4 DESPITE THE 7 VOLUME RISE IN INTERNATIONAL MARKETS THE COMPANY NOTED THAT OVERALL VOLUME GROWTH WAS CONSTRAINED BY ECONOMIC SOFTNESS IN EUROPE AND JAPAN DESPITE SOLID VOLUME GAINS IN LATIN AMERICA AND IN MANY ASIAN COUNTRIES INTERNATIONAL VOLUME ROSE BY 5 BUT PRICING DECLINES AND FOREIGNEXCHANGE FLUCTUATIONS REDUCED THE INCREASE ON A DOLLAR BASIS TO JUST 2 THE COMPANY'S INFORMATION IMAGING AND ELECTRONIC GROUP HAS BEEN HURT FOR SEVERAL QUARTERS BY WEAKENING PRICES FOR SUCH IMPORTANT PRODUCTS AS VIDEOTAPE COMPUTER DISKS AND THE PRIVATELABEL PHOTOGRAPHIC FILM 3M MAKES BUT COSTCUTTING EFFORTS ARE THOUGHT TO HAVE HELPED BOOST OPERATING INCOME IN THE LATEST PERIOD 9404280115 940428 FLAGSTAR PLANS TO SELL MOST OF CANTEEN TO COMPASS FOR 450 MILLION END LOSS BY ANITA SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL FLAGSTAR COS PLANS TO SELL MOST OF ITS CANTEEN FOOD AND VENDING OPERATIONS TO COMPASS GROUP PLC FOR 450 MILLION THE COMPANY SAID THE SALE SHOULD HELP IT REPORT A PROFIT FROM CONTINUING OPERATIONS IN 1994 AFTER ALMOST FOUR YEARS OF LOSSES FLAGSTAR BASED IN SPARTANBURG SC SAID IT'S SHEDDING MOST OF THE CANTEEN DIVISION TO PAY DOWN DEBT AND FOCUS ON ITS CORE BUSINESS OF RUNNING DENNY'S HARDEE'S QUINCY'S AND EL POLLO LOCO RESTAURANT CHAINS THE MOVE WAS APPLAUDED BY MANY INDUSTRY ANALYSTS WHO NOTED THAT FLAGSTAR HAS BEEN BRUISED IN RECENT YEARS BY WEAK TRAFFIC AND SALES AT ITS RESTAURANTS MANY OF WHICH WERE BADLY IN NEED OF A FACELIFT EARLIER THIS YEAR FLAGSTAR SAID IT WOULD SPEND 190 MILLION DURING THE NEXT THREE YEARS TO REMODEL ALL OF ITS 1515 DENNY'S RESTAURANTS CANTEEN HAS BEEN DIFFICULT FOR THEM TO GET THEIR ARMS AROUND SAID MICHAEL MUELLER WITH MONTGOMERY SECURITIES IN SAN FRANCISCO THE DIVISION HE ADDED HAS REQUIRED A GREAT DEAL OF MANAGEMENT TIME AND ATTENTION THAT CAN NOW BE TURNED TO THE RESTAURANTS COMPASS BASED IN LONDON IS BUYING THE CANTEEN OPERATIONS FOOD SERVICE AND VENDING OPERATIONS WHICH SERVICE BUSINESSES HOSPITALS RETIREMENT HOMES AND PRISONS AMONG OTHER FACILITIES THAT ARE MOST CAPITAL INTENSIVE AND SENSITIVE TO THE ECONOMY THIS PORTION OF CANTEEN'S BUSINESS ACCOUNTED FOR ABOUT 25 OF FLAGSTAR'S 1993 REVENUE OF 4 BILLION FLAGSTAR IS STILL TRYING TO SELL THE CANTEEN UNITS THAT PROVIDE FOOD OPERATIONS TO NATIONAL PARKS AND SPORTS ARENAS SUCH AS YANKEE STADIUM IN NEW YORK AND CANDLESTICK PARK IN SAN FRANCISCO THESE TWO DIVISIONS PRODUCE ABOUT 300 MILLION IN ANNUAL REVENUE AND YIELD HIGHER MARGINS THAN THE VENDING BUSINESS ACCORDING TO ANALYSTS CONSEQUENTLY FLAGSTAR HOPES TO COMMAND A PREMIUM PRICE FOR THE BUSINESSES SAYS JEROME J RICHARDSON FLAGSTAR'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER THESE UNITS HAVE ATTRACTED AN EXTRAORDINARY AMOUNT OF INTEREST OVER THE YEARS HE ADDED BY BECOMING A PURELY RESTAURANT COMPANY FLAGSTAR WILL REPORT A PROFIT FROM CONTINUING OPERATIONS IN 1994 SAID A RAY BIGGS FLAGSTAR'S SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER FOR 1993 THE COMPANY REPORTED A LOSS OF 172 BILLION OR 4093 A SHARE THAT INCLUDED CHARGES OF 225 MILLION TO COVER A RESTAURANT RESTRUCTURING AND 15 BILLION FOR A WRITEOFF OF GOODWILL COMPASS A FOODSERVICES COMPANY WITH ANNUAL SALES OF ABOUT 1 BILLION BEGAN TALKING WITH FLAGSTAR LAST FALL ABOUT BUYING CANTEEN THE ACQUISITION WILL ABOUT DOUBLE THE SIZE OF COMPASS SAID FRANCIS MACKAY COMPASS'S CHIEF EXECUTIVE COMPASS INSTALLS NAMEBRAND RESTAURANTS SUCH AS BURGER KING AND PIZZA HUT IN UNIVERSITIES BUSINESSES AIRPORTS AND OTHER FACILITIES THIS PRACTICE IS MUCH LIKE CANTEEN'S STRATEGY OF SETTING UP WELLKNOWN FOOD OPERATIONS AT ITS 1600 FOODSERVICE ACCOUNTS SEPARATELY FLAGSTAR YESTERDAY REPORTED A FIRSTQUARTER LOSS OF 231 MILLION OR 63 CENTS A SHARE COMPARED WITH A LOSS OF 376 MILLION OR 98 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 6 TO 6263 MILLION FROM 5928 MILLION THE COMPANY SAID IT IS TREATING ITS CANTEEN DIVISION AS A DISCONTINUED OPERATION AND HAS RECLASSIFIED RESULTS FOR FIRST QUARTER 1993 THE FIRSTQUARTER LOSS FROM CONTINUING OPERATIONS NARROWED TO 127 MILLION OR 38 CENTS A SHARE FROM 224 MILLION OR 62 CENTS A SHARE A YEAR EARLIER WITHOUT CANTEEN'S RESULTS FIGURED IN FLAGSTAR SAID OPERATING PROFIT FOR THE QUARTER INCREASED 43 TO 388 MILLION FROM 272 MILLION A YEAR BEFORE MANAGEMENT WAS PARTICULARLY HEARTENED BY FIRSTQUARTER OPERATING RESULTS AT DENNY'S WHICH SHOWED A 26 JUMP IN OPERATING PROFIT TO 229 MILLION AND A 5 REVENUE GAIN TO 3665 MILLION 9404280114 940428 INTERNATIONAL GM DATA FOUND AT VW OFFICES PROSECUTORS SAY GERMAN CAR MAKER'S STOCK SINKS AS INVESTIGATION OF LOPEZ AFFAIR WIDENS BY AUDREY CHOI AND JOSEPH B WHITE STAFF REPORTERS OF THE WALL STREET JOURNAL VOLKSWAGEN AG SHARES SLUMPED YESTERDAY AFTER GERMAN PROSECUTORS INVESTIGATING VW PRODUCTION CHIEF J IGNACIO LOPEZ DE ARRIORTUA SAID THEY FOUND GENERAL MOTORS CORP INFORMATION INCLUDING DATA FROM GM'S US OPERATIONS AT VW HEADQUARTERS AND IN HOMES OF VW EXECUTIVES IN WOLFSBURG A REPORT ISSUED YESTERDAY BY THE DARMSTADT PUBLIC PROSECUTOR'S OFFICE WAS THE MOST DETAILED STATEMENT YET ABOUT ITS PROBE INTO GM'S CHARGES THAT MR LOPEZ THE COMPANY'S FORMER WORLDWIDE PURCHASING CHIEF AND CERTAIN ASSOCIATES TOOK SENSITIVE GM DATA TO VW WHEN THEY JUMPED TO THE GERMAN AUTO MAKER LAST YEAR IN THE REPORT GERMAN PROSECUTORS FOR THE FIRST TIME SAID THAT DATA FROM GM'S US OPERATIONS INCLUDING COSTCUTTING STRATEGIES FOR CERTAIN US VEHICLES WERE FOUND AT THE WOLFSBURG HOME OF ONE OF MR LOPEZ'S ASSOCIATES PROSECUTORS SAID THEY ALSO FOUND DATA AT VW OFFICES IN WOLFSBURG THAT APPEARED TO HAVE COME FROM GM'S GERMAN UNIT ADAM OPEL AG THE US JUSTICE DEPARTMENT ALSO IS INVESTIGATING WHETHER MR LOPEZ OR SOME OF HIS ASSOCIATES TOOK PROPRIETARY GM INFORMATION FROM DETROIT TO GERMANY GM OFFICIALS WOULDN'T ELABORATE YESTERDAY ON WHAT INFORMATION FROM ITS US OFFICES WAS FOUND BY GERMAN AUTHORITIES SEPARATELY HAMBURG PUBLIC PROSECUTORS ARE EXPECTED TO ISSUE A DECISION BY EARLY NEXT WEEK OVER POSSIBLE FALSE SWORN STATEMENTS BY MR LOPEZ HAMBURG PUBLIC PROSECUTORS HAVE SAID THEY FOUND CONTRADICTIONS IN CERTAIN AFFIDAVITS MR LOPEZ SUBMITTED TO BOTH A FRANKFURT COURT AND A HAMBURG COURT REGARDING WHETHER HE HAD RECEIVED PHOTOGRAPHS OF THE FORTHCOMING OPEL VECTRA SHORTLY BEFORE LEAVING GM THE DARMSTADT PROSECUTOR'S OFFICE STRESSED THAT ITS INVESTIGATION IS CONTINUING AND THAT NO CHARGES HAVE BEEN FILED VW YESTERDAY WELCOMED THE PROSECUTOR'S REPORT SAYING IT COULD CALM SPECULATION IN THE GERMAN MEDIA THAT AN INDICTMENT IS IMMINENT VW ALSO POINTED TO FINDINGS BY AUDITORS IT HIRED FROM KPMG DEUTSCHE TREUHANDGESELLSCHAFT WHO FOUND LAST YEAR THAT WHILE CERTAIN GM MATERIAL HAD BEEN ENTERED INTO VW COMPUTERS NONE OF THOSE DOCUMENTS WERE STRICTLY SECRET IN A TOUGH STATEMENT YESTERDAY GM REJECTED VW'S EXPLANATIONS THERE'S NO QUESTION IN OUR MINDS THAT THE DOCUMENTS DESCRIBED IN THE DARMSTADT PUBLIC PROSECUTOR'S PRESS STATEMENT CONTAIN PROPRIETARY GM/OPEL INFORMATION THE PROSECUTOR'S STATUS REPORT CLEARLY ESTABLISHES THE LEGITIMACY OF THESE CONCERNS AND HEIGHTENS OUR FEAR THAT GM/OPEL PROPRIETARY INFORMATION WAS USED BY VW ONE OF OUR MAJOR EUROPEAN COMPETITORS THE DARMSTADT PROSECUTOR'S REPORT ALSO RATTLED INVESTORS WHO VIEW MR LOPEZ AS A CRITICAL PLAYER IN VW'S CRUSADE TO CUT ITS BLOATED COSTS AND REGAIN PROFITABILITY VW SHARES SKIDDED 27 TO 52450 MARKS 31286 AT THE CLOSE OF FRANKFURT TRADING IN AN OTHERWISE FIRM MARKET YESTERDAY PEOPLE WERE REMINDED OF THE RISK TO THE COMPANY IF ONE OF THE MAIN PILLARS SUPPORTING VW'S TURNAROUND STORY NAMELY LOPEZ BEGINS TO CRUMBLE SAID HORST K GREVEN AUTO INDUSTRY ANALYST AT MERCK FINCK & CO IN DUESSELDORF MR GREVEN NOTED THAT SELLING FROM US INVESTORS DROVE THE DECLINE IN THE SHARE PRICE IN ITS STATEMENT THE DARMSTADT PROSECUTOR'S OFFICE SAID THAT COMPUTER DISKS SEIZED FROM OFFICES AND RESIDENCES USED BY MR LOPEZ AND HIS ASSOCIATES CONTAINED DATA THAT APPEARED TO BE BASED ON GM OR OPEL DOCUMENTS IN ONE INSTANCE THE REPORT SAID PLANS TO BUILD A LOWCOST VW FACTORY IN MR LOPEZ'S NATIVE BASQUE COUNTRY IN NORTHERN SPAIN KNOWN INSIDE VW AS PLANT B APPEARED TO BE SIMILAR TO PLANS FOR A LOWCOST BASQUE FACTORY CODENAMED PLANT X THAT MR LOPEZ WORKED ON WHILE AT GM GERMAN PROSECUTORS ALSO CONFIRMED THAT BOXES FOUND IN A WIESBADEN APARTMENT OCCUPIED BY TWO OF MR LOPEZ'S ASSOCIATES CONTAINED DOCUMENTS IDENTIFIED BY GM/OPEL OFFICIALS AS SECRET PLANS FOR A LOWCOST CAR CODENAMED THE OCAR AS WELL AS OPEL PURCHASING AND COSTCUTTING STRATEGIES 9404280113 940428 WHO'S NEWS NATIONSBANK CORP NATIONSBANK CORP CHARLOTTE NC JACKIE M WARD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF COMPUTER GENERATION INC ATLANTA WAS ELECTED A DIRECTOR OF THIS BANKHOLDING COMPANY MS WARD 55 YEARS OLD SUCCEEDS FORMER SOUTH CAROLINA GOV ROBERT E MCNAIR 70 WHO RETIRED 9404280112 940428 CHICAGO MERC HAS TRADE DATA ON FIRST LADY ACTIVITY MAY HAVE BEEN PART OF CONTROVERSIAL BLOCK' FUTURES TRADING BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE CHICAGO MERCANTILE EXCHANGE IS HOLDING HUNDREDS OF PAGES OF DOCUMENTS THAT COULD SHED NEW LIGHT ON HOW HILLARY RODHAM CLINTON REAPED A 99000 PROFIT ON A 1000 COMMODITY INVESTMENT BUT SAYS IT WON'T RELEASE THEM UNLESS SUBPOENAED EXCHANGE OFFICIALS DECLINED TO DISCUSS THE CONTENTS OF THE RECORDS BUT A FORMER MERC COMPLIANCE OFFICER AND OTHERS SAID THE RECORDS ARE LIKELY TO SHOW THAT SOME OF MRS CLINTON'S CATTLEFUTURES TRADES WERE EXECUTED AS PART OF CONTROVERSIAL BLOCK TRANSACTIONS BLOCK TRADING IS THE PRACTICE AMONG COMMODITY BROKERS OF ENTERING CUSTOMER ORDERS FOR COMMODITYFUTURES CONTRACTS EN MASSE AND PARCELING OUT THE TRADES LATER AFTER THE PROFITS OR LOSSES ON THE TRADES HAVE BEEN DETERMINED SOME REGULATORS FROWN ON THE PRACTICE BECAUSE THEY THINK IT ALLOWS BROKERS TO SHOWER FAVORED CUSTOMERS WITH NORISK PROFITS EXCHANGES INCLUDING THE MERC IMPOSED RESTRICTIONS ON BLOCK TRADING IN THE EARLY 1980S AFTER MRS CLINTON DID HER TRADING OF CATTLEFUTURES CONTRACTS AND OTHER COMMODITIES THROUGH A SPRINGDALE ARK BRANCH OFFICE OF THE CHICAGOBASED BROKERAGE FIRM REFCO INC I SUSPECT THAT ALL THE ACCOUNTS IN THE REFCO SPRINGDALE OFFICE AT THE TIME WOULD SHOW UP THAT WAY BECAUSE THAT'S THE WAY THE BRANCH'S BROKERS CUSTOMARILY ORDERED AND DISTRIBUTED THEIR TRADES SAID JOHN TROELSTRUP VICE PRESIDENT IN CHARGE OF COMPLIANCE AT THE CHICAGO MERC FROM 1980 TO 1983 BEFORE THAT AS REGIONAL COUNSEL FOR THE COMMODITY FUTURES TRADING COMMISSION MR TROELSTRUP MONITORED A MERC INVESTIGATION OF MRS CLINTON'S BROKER ROBERT L RED BONE AND REFCO VICTOR SPERANDEO A NEW JERSEY MONEY MANAGER WHO HAS REVIEWED TRADING RECORDS RELEASED BY THE WHITE HOUSE SAID HE HAS NO DOUBT THAT SOME OF MRS CLINTON'S TRADES WERE EXECUTED AS PART OF BLOCKS HE SAID HE BASED HIS ASSERTION ON HIS ANALYSIS OF THOSE RECORDS PARTICULARLY TWO OF MRS CLINTON'S LARGE CATTLEFUTURES TRADES IN A RECENT INTERVIEW MR BONE ACKNOWLEDGED WIDESPREAD USE OF BLOCK TRADES BUT SAID THAT NONE OF HIS CUSTOMERS RECEIVED PREFERENTIAL TREATMENT HE SAID HE MAY HAVE PLACED SOME OF MRS CLINTON'S TRADES AS PART OF A BLOCK BUT DIDN'T SPECIFICALLY RECALL DOING SO EVEN IF THE MERC'S RECORDS DO SHOW THAT MRS CLINTON'S TRADES WERE EXECUTED IN BLOCK TRADES IT WOULDN'T NECESSARILY PROVE THAT HER PROFITS RESULTED FROM FAVORITISM MR TROELSTRUP SAID IN A NEWS CONFERENCE LAST FRIDAY MRS CLINTON DENIED SHE RECEIVED SPECIAL HANDLING IN HER COMMODITY TRADING BECAUSE OF HER HUSBAND'S POLITICAL PROMINENCE IN ARKANSAS THERE ISN'T ANY EVIDENCE THAT ANYBODY GAVE ME ANY FAVORABLE TREATMENT SHE SAID REPUBLICAN SENATORS INCLUDING ALFONSE D'AMATO OF NEW YORK HAVE ASKED THE MERC FOR ITS RECORDS AS HAVE REPUBLICAN MEMBERS OF THE HOUSE GOVERNMENT OPERATIONS COMMITTEE SEN D'AMATO COULDN'T BE REACHED FOR COMMENT YESTERDAY THE CFTC THE MERC'S FEDERAL REGULATOR HAS ASKED THE EXCHANGE TO PRESERVE ITS RECORDS IN CASE THEY ARE SUBPOENAED BY CONGRESSIONAL OR OTHER INVESTIGATORS PEOPLE FAMILIAR WITH THE MATTER SAY MERC CHAIRMAN JOHN F SANDNER SAID HIS EXCHANGE HAS REBUFFED NUMEROUS REQUESTS FOR THE RECORDS WHICH WERE COMPILED AS PART OF THE EXCHANGE'S 1980 INVESTIGATION WE DO NOT RELEASE TRADING INFORMATION ABOUT OUR CUSTOMERS WITHOUT A DULY AUTHORIZED SUBPOENA MR SANDNER SAID MRS CLINTON WAS AMONG A GROUP OF INVESTORS REFERRED TO MR BONE AND REFCO'S SPRINGDALE BRANCH BY JAMES BLAIR A PROMINENT ARKANSAS ATTORNEY WHO WAS OUTSIDE COUNSEL TO TYSON FOODS INC AT THE TIME MRS CLINTON OPENED THE ACCOUNT IN 1978 A MONTH BEFORE HER HUSBAND WAS ELECTED GOVERNOR OF ARKANSAS SHE REAPED A PROFIT OF 5300 OR MORE THAN 500 ON HER FIRST DAY OF TRADING ACCORDING TO RECORDS RELEASED BY THE WHITE HOUSE MR TROELSTRUP SAID THE MERC'S INVESTIGATION DIDN'T TARGET INDIVIDUAL REFCO CLIENTS SUCH AS MRS CLINTON BUT RATHER FOCUSED ON MR BONE REFCO ITSELF AND LARGER QUESTIONS OF WHETHER BLOCK TRADING WAS APPROPRIATE AFTER THE INVESTIGATION THE EXCHANGE SUSPENDED MR BONE'S PERSONAL TRADING PRIVILEGES FOR A YEAR FOR SERIOUS AND REPEATED VIOLATIONS OF RECORDKEEPING FUNCTIONS ORDERENTRY PROCEDURES MARGIN REQUIREMENTS AND HEDGE PROCEDURES BLOCK TRADING WASN'T SPECIFICALLY MENTIONED IN THE EXCHANGE'S OFFICIAL ANNOUNCEMENT OF THE ACTION THE EXCHANGE ALSO FINED REFCO 250000 AND SUSPENDED THE TRADING PRIVILEGES OF ITS CHAIRMAN THOMAS DITTMER FOR SIX MONTHS 9404280111 940428 CANDELA LASER WART TREATMENT WAYLAND MASS CANDELA LASER CORP SAID IT RECEIVED APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION TO MARKET A NEW TREATMENT FOR WARTS USING ITS SPTL VASCULAR LESION LASER IT SAID ITS LASER TREATMENT IS EFFECTIVE FOR WARTS THAT REMAIN AFTER THE APPLICATION OF TRADITIONAL METHODS A CANDELA SPOKESMAN COULDN'T ESTIMATE THE VALUE OF THE DEVELOPMENT THE LASER PRODUCT WHICH SELLS FOR ABOUT 130000 HAS PREVIOUSLY BEEN APPROVED FOR OTHER TREATMENTS 9404280110 940428 MARKETING & MEDIA ADVERTISING THREE PLACEBASED TV SUPPLIERS REGAINING RESISTANT AUDIENCES BY KEVIN GOLDMAN ENTREPRENEURS WHO PLACED TELEVISION SETS IN SUPERMARKET CHECKOUT LINES FASTFOOD RESTAURANTS PHYSICIANS' WAITING ROOMS HEALTH CLUBS AND TRUCK STOPS HAVE ALL BEEN SHOWN THE DOOR THE SIMPLE REASON CONSUMERS RESENTED BEING BOMBARDED WITH PROGRAMMING AND WORSE COMMERCIALS WHILE THEY WERE A CAPTIVE AUDIENCE BUT NOW AT LEAST THREE SUPPLIERS OF SOCALLED PLACEBASED MEDIA APPEAR TO BE MEETING WITH LIMITED SUCCESS COLLEGE TELEVISION NETWORK WHICH PROGRAMS MUSIC VIDEOS ON MONITORS IN UNIVERSITY CAFETERIAS CHANNEL M SEEN IN VIDEO ARCADES WITH A DIET OF SHOWS THAT INCLUDE GONZO SPORTS HIGHLIGHTS AND CNN AIRPORT NETWORK PROVIDING NEWS AT 17 DOMESTIC AIRPORTS ALL THREE ARE ATTRACTING MAJOR ADVERTISERS BECAUSE THEY REACH IMPORTANT BUT ELUSIVE TARGET AUDIENCES COLLEGE STUDENTS TEENAGE BOYS AND BUSINESS TRAVELERS SPONSORS OF THE COLLEGE TELEVISION NETWORK WHICH IS AVAILABLE ON 200 CAMPUSES ARE COCACOLA MCI COMMUNICATIONS AND NEW LINE CINEMA GENERAL MOTORS' CHEVROLET DIVISION WHICH WAS A SPONSOR IN LAST YEAR'S FOURTH QUARTER DECIDED NOT TO RENEW ITS CONTRACT ADVERTISERS FOR CHANNEL M SEEN IN 100 MALLS ACROSS THE COUNTRY INCLUDE NINTENDO OF AMERICA WALT DISNEY'S MOVIE DIVISION AND KONAMI A MAKER OF VIDEOGAME SOFTWEAR CNN AIRPORT NETWORK FORMERLY THE AIRPORT CHANNEL HAS ATTRACTED SUCH SPONSORS AS AT&T AMERICAN EXPRESS AND NATIONAL CAR RENTAL SYSTEM WE'RE LOOKING FOR A VERY NEW AND INNOVATIVE BREAKTHROUGHMARKETING TECHNIQUE SAYS PATRICIA PROFERES A DIRECTOR OF MARKETING FOR MCI'S COLLECTSERVICE PLACEBASED ADVERTISING HAS BEEN MUCH MALIGNED AS INTRUSIVE AND UNNECESSARY EVEN THE NEW VENTURES ARE MEETING SOME RESISTANCE STUDENTS ON AT LEAST FIVE CAMPUSES DEMANDED THAT COLLEGE TELEVISION NETWORK REMOVE ITS MONITORS BECAUSE THE SERVICE WAS TOO DISTRACTING AND INTERFERED WITH SOCIALIZING IT'S ALWAYS RISKY WHEN GOING SOMEPLACE WHERE PEOPLE AREN'T USED TO SEEING TELEVISION SETS SAYS JOHN MCMENAMIN EXECUTIVE VICE PRESIDENT OF TURNER PRIVATE NETWORKS A UNIT OF TURNER BROADCASTING SYSTEM INDUSTRY EXECUTIVES SAY THEY DON'T WANT TO TURN THE AUDIENCE OFF OF ANY PROGRAMMING OR THE SPONSORS AND LEAVE A BAD IMPRESSION THAT MAY LAST WHEN THEY'RE HOME WATCHING TELEVISION FINANCIAL STRAINS HAVE ALSO HURT SOME PLACEBASED ADVERTISING PROJECTS COSTS SKYROCKETED AS COMPANIES INCLUDING TURNER PRIVATE NETWORKS AND WHITTLE COMMUNICATIONS SUPPLIED EQUIPMENT INCLUDING SATELLITE DISHES AND COLOR TV MONITORS FREE OF CHARGE TO ESTABLISHMENTS WILLING TO TAKE THEIR PROGRAMS AND ADVERTISING WE'RE NOW EXPLORING ARENAS THAT FULFILL A PROGRAMMING NEED AS OPPOSED TO JUST GETTING A CAPTIVE AUDIENCE AND PUTTING ADVERTISING IN FRONT OF THEM SAYS MR MCMENAMIN WE ONLY WANT TO GO WHERE WE'RE WANTED BUT HE DECLINED TO SAY WHERE THAT MIGHT BE PETER L KAUFF CHAIRMAN OF LASER VIDEO NETWORK WHICH OWNS THE COLLEGE TELEVISION NETWORK SAYS A BUSTLING COLLEGE CAFETERIA IS THE PERFECT ENVIRONMENT FOR ITS INTERACTIVE MONITORS THAT BROADCAST MUSIC VIDEOS RANGING FROM SHERYL CROW'S LEAVING LAS VEGAS TO PEARL JAM'S JEREMY TO JANET JACKSON'S BECAUSE OF LOVE STUDENTS CAN REQUEST VIDEOS AS THEY WOULD ON A JUKEBOX EXCEPT THIS IS FREE OF CHARGE THE SAME VIDEOS ARE OFFERED TO EACH OF THE CAMPUSES ALTHOUGH THEIR ROTATION IS DECIDED BY THE STUDENTS THERE ARE EIGHT MINUTES OF ADVERTISING PER HOUR NEW LINE CINEMA FOR INSTANCE IS AIRING 90SECOND TO TWOMINUTE THEATRICAL TRAILERS FOR UPCOMING MOVIE RELEASES INCLUDING THE MASK AND WES CRAVEN'S NEW NIGHTMARE WE KNOW FROM PAST HISTORY THAT COLLEGE MARKETING WORKS SAYS MITCHELL GOLDMAN PRESIDENT OF MARKETING AND DISTRIBUTION AT NEW LINE BUT NOT AT EVERY COLLEGE A SPOKESMAN AT EASTERN MENNONITE COLLEGE IN HARRISONBURG VA SAYS THE MUSIC STOPPED BECAUSE SOME STUDENTS OBJECTED TO THE CONTENT OF SOME MUSIC VIDEOS AND IT INTERFERED WITH THE IMPORTANT SOCIALIZING THAT GOES ON IN A DINING HALL SIMILARLY A SPOKESMAN FOR THE UNIVERSITY OF TENNESSEE AT MARTIN SAYS THE PLUG WAS PULLED BECAUSE STUDENTS COMPLAINED ABOUT THE MUSIC SELECTION AND THE VOLUME WAS TOO LOUD THERE'S A DIFFERENT PROBLEM WITH VOLUME LEVEL FOR CHANNEL M WHICH STANDS FOR MALL THE MONITORS ARE PLACED IN 100 ALADDIN'S CASTLE VIDEO ARCADES THROUGHOUT THE US AND IT'S THE VOLUME ON THE VIDEO GAMES THAT HAS TO BE LOWERED SO CHANNEL M CAN BE HEARD SAYS MARSHALL TEICHNER THE CHANNEL'S PRESIDENT AND CHIEF EXECUTIVE OFFICER MEANWHILE TURNER PRIVATE NETWORKS REMAINS ON THE PROWL FOR NEW LOCATIONS LAST YEAR THE COMPANY TESTED MONITORS IN MCDONALD'S MR MCMENAMIN SAYS THAT IS NOW ON THE BACK BURNER IT IS UNKNOWN WHETHER THE LATEST PLACEBASED MEDIA WILL BECOME AN EFFECTIVE ADVERTISING VEHICLE YESTERDAY IN THE LOWENSTEIN CAFE AT FORDHAM UNIVERSITY'S LINCOLN CENTER CAMPUS IN NEW YORK STUDENTS WERE OBLIVIOUS TO THE MONITOR AS THE GRATEFUL DEAD PERFORMED TOUCH OF GREY CAROL SILLS A 30YEAROLD FIRST YEAR LAW STUDENT SAYS I NEVER NOTICED ANYONE WATCHING IT NO ONE GATHERS AROUND IT BUT TONY KAMMAS A 20YEAROLD FORDHAM JUNIOR DISAGREES I PLAY IT MOST AFTERNOONS WITH SOME FRIENDS HE SAYS ALTHOUGH HE SAYS HE AND HIS FRIENDS NOTICE THE COMMERCIALS HE CONFESSES WHAT WE REALLY PAY ATTENTION TO ARE THE MUSIC VIDEOS ACCOUNTS INTERPUBLIC GROUP'S MCCANNERICKSON NEW YORK SCOOPED UP THE ESTIMATED 6 MILLION CAT LITTER ACCOUNT OF A&M PRODUCTS A DANBURY CONN UNIT OF FIRST BRANDS CORP JW MESSNER OF GRAND RAPIDS MICH PREVIOUSLY HAD THE ACCOUNT INCLUDING THE SCOOP AWAY AND EVER CLEAN BRANDS MCCANN SAID 9404280109 940428 WHO'S NEWS INTERNATIONAL POST LTD INTERNATIONAL POST LTD NEW YORK DAN ROSEN 56 YEARS OLD WAS NAMED PRESIDENT OF MANHATTAN TRANSFER/EDIT INC A SUBSIDIARY OF THIS PROVIDER OF POSTPRODUCTION SERVICES MANHATTAN TRANSFER HAD ABOUT 20 MILLION IN SALES LAST YEAR MR ROSEN SUCCEEDS MARTIN IRWIN 57 WHO CONTINUES AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE PARENT MR ROSEN FORMERLY PRESIDENT OF A UNITEL VIDEO INC SUBSIDIARY WAS ALSO NAMED A VICE PRESIDENT AT INTERNATIONAL POST 9404280108 940428 LAW LEGAL BEAT US STEPS UP ITS PROBE OF THRIFT THAT MAY AFFECT FATE OF REDWOODS BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL THE LONGDORMANT FEDERAL INVESTIGATION INTO THE COLLAPSE OF A THRIFT PARTLY OWNED BY TEXAS FINANCIER CHARLES HURWITZ IS HEATING UP AND THE OUTCOME COULD AFFECT THE FATE OF SOME OF THE NATION'S LAST PRIVATELY OWNED GIANT REDWOOD TREES ATTORNEYS FAMILIAR WITH THE FEDERAL PROBE INTO THE COSTLY 1988 FAILURE OF HOUSTONBASED UNITED SAVINGS ASSOCIATION OF TEXAS SAID THE GOVERNMENT HAS RETAINED A CHICAGO LAW FIRM TO STEP UP PRESSURE AGAINST MR HURWITZ AND OTHERS THESE ATTORNEYS SAID THE GOVERNMENT ALSO HAS ISSUED SUBPOENAS OR NOTICES OF DEPOSITION TO SEVERAL FORMER EXECUTIVES AND INVESTORS IN UNITED SAVINGS THE INVESTIGATION IS BEING DIRECTED BY THE FEDERAL DEPOSIT INSURANCE CORP THE GOVERNMENT THRIFT AND BANKING REGULATORY AGENCY IT WASN'T IMMEDIATELY CLEAR WHETHER MR HURWITZ WAS AMONG THOSE RECEIVING A SUBPOENA HOWEVER HE OWNED AT LEAST 23 OF UNITED SAVINGS' PARENT AND HAS LONG BEEN A CENTRAL FOCUS OF THE PROBE ACCORDING TO GOVERNMENT INVESTIGATORS UNITED SAVINGS' COLLAPSE ONE OF THE MOST EXPENSIVE EVER IS EXPECTED TO COST TAXPAYERS 16 BILLION MR HURWITZ IS PRINCIPAL SHAREHOLDER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF HOUSTONBASED MAXXAM CORP WHICH AMONG OTHER THINGS IS THE WORLD'S BIGGEST PRODUCER OF PREMIUM REDWOOD LUMBER THROUGH ITS PACIFIC LUMBER CO UNIT MR HURWITZ WHO HAS 60 VOTING CONTROL OVER MAXXAM DECLINED TO COMMENT ON THE INVESTIGATION AS DID THE FDIC BUT A GROWING NUMBER OF CONGRESSMEN AND SOME GOVERNMENT OFFICIALS ARE INTERESTED IN POSSIBLY SWAPPING THE GOVERNMENT'S CLAIMS AGAINST MR HURWITZ FOR SOME OF PACIFIC LUMBER'S REDWOOD TREES THE IDEA FOR THE TREE SWAP WAS FIRST RAISED SEVERAL YEARS AGO BUT JUST RECENTLY STARTED TO GAIN MOMENTUM AMONG THOSE BELIEVED TO BE INTERESTED IN THE IDEA IS VICE PRESIDENT AL GORE WHO MET RECENTLY WITH MR HURWITZ MR GORE HAS DECLINED TO COMMENT ON THE SUBJECT OF THE MEETING AS HAS MR HURWITZ SUPPORTERS OF SUCH AN ARRANGEMENT ARE PARTICULARLY INTERESTED IN PRESERVING 3000 ACRES KNOWN AS THE HEADWATERS FOREST THE LARGEST UNTOUCHED TRACT OF OLD REDWOODS IN PRIVATE HANDS THIS WEEK THE HOUSE NATURAL RESOURCES COMMITTEE IS EXPECTED TO VOTE ON LEGISLATION THAT WOULD AUTHORIZE THE GOVERNMENT TO ACQUIRE AS MANY AS 44000 ACRES OF LAND OWNED BY PACIFIC LUMBER MORE THAN ONEFIFTH OF ALL ITS HOLDINGS REP DAN HAMBURG D CALIF WHO CRAFTED THE BILL HAS SAID THAT A SWAP COULD BE ONE MECHANISM FOR ACQUIRING SOME OF THE TREES FROM PACIFIC LUMBER THE MORE PRESSURE THE GOVERNMENT PUTS ON MR HURWITZ THROUGH THE THRIFT CASE THE BETTER OUR HOPES OF SAVING THOSE FORESTS BECOME SAID ONE AIDE TO REP HAMBURG SOME PEOPLE QUESTION WHETHER SUCH A BARTER IS APPROPRIATE PARTICULARLY IF THE FDIC IS BEING PRESSURED TO TURN UP THE HEAT ON MR HURWITZ BY ENVIRONMENTALLY MINDED GOVERNMENT OFFICIALS PUSHING TO PRESERVE THE TREES HOWEVER TO DATE THERE IS NO EVIDENCE OF THAT SEVERAL FORMER GOVERNMENT THRIFT ATTORNEYS SAID USING THE GOVERNMENT'S CLAIMS AS LEVERAGE TO PRY LOOSE SOME OF MR HURWITZ'S TREES WOULD BE AN UNPRECEDENTED APPROACH TO RECOUPING GOVERNMENT LOSSES FROM THE THRIFT DISASTER BUT AS LONG AS THE GOVERNMENT ENDS UP RECEIVING SOMETHING OF VALUE IT WOULDN'T BE VIOLATIVE OF THE SPIRIT OF THE THRIFT BAILOUT SAID REX VEAL A FORMER SPECIAL COUNSEL FOR THE RESOLUTION TRUST CORP THE AGENCY CHARGED WITH DISPOSING OF THE ASSETS OF DEFUNCT THRIFTS MR HURWITZ HAS SAID HE IS WILLING TO SELL THE GOVERNMENT ABOUT 4500 ACRES INCLUDING THE HEADWATERS FOREST REGARDLESS OF THE OUTCOME OF THE FDIC PROBE HOWEVER HE HAS SAID HE WON'T CONSIDER SELLING ANY MORE LAND THAN THAT MAXXAM HAS ESTIMATED THE MARKET VALUE OF THE 4500 ACRES AT 600 MILLION THE GOVERNMENT'S NEW UNITED SAVINGS MOVES MARK A MAJOR ESCALATION OF ITS PROBE AND FOLLOW INTENSIFYING CONGRESSIONAL CRITICISM ABOUT THE PLODDING PACE OF THE CASE UNITED SAVINGS WAS AMONG A HANDFUL OF THRIFTS ALMOST ALL NOW DEFUNCT THAT GOT HEAVILY INVOLVED IN THE JUNK BOND DEALS OF THE 1980S IN 1989 THE FDIC SAID IT INTENDED TO SUE CERTAIN UNITED SAVINGS OFFICIALS FOR NEGLIGENCE THAT ALLEGEDLY HELPED CAUSED THE THRIFT'S FAILURE THE FDIC INDICATED CLAIMS OF ROUGHLY 548 MILLION IN KEEPING WITH A POLICY MEANT TO LIGHTEN THE AGENCY'S STAGGERING LOAD OF THRIFT CASES IT HELD OFF ON FILING THE SUIT WHILE THE TWO SIDES TRIED TO WORK OUT A SETTLEMENT BUT AFTER FIVE YEARS OF SPORADIC TALKS THE FDIC HAS SHIFTED INTO A MORE AGGRESSIVE POSTURE IT RECENTLY TURNED THE CASE OVER TO HOPKINS & SUTTER A CHICAGO LAW FIRM THAT HAS HANDLED SOME OF THE GOVERNMENT'S BIGGEST THRIFT CASES JOHN ROGERS A HOPKINS & SUTTER PARTNER OVERSEEING THE CASE DECLINED TO COMMENT BUT OTHER ATTORNEYS SAID SUBPOENAS AND NOTICES OF DEPOSITION HAVE RECENTLY BEEN SERVED ON SEVERAL FIGURES IN THE UNITED SAVINGS CASE THE GOVERNMENT IS FINALLY GETTING SERIOUS SAID ONE LAWYER FAMILIAR WITH THE CASE MR HURWITZ IS TOO HE RECENTLY HIRED JOHN DOUGLAS A FORMER GENERAL COUNSEL OF THE FDIC TO REPRESENT HIM IN THE MATTER THE PROBE FOCUSES ON NUMEROUS POTENTIAL VIOLATIONS OF BANKING REGULATIONS AND STATUTES ONE IS DIVIDENDS AND TAX BENEFITS THAT ALLEGEDLY WENT TO INVESTORS SUCH AS MR HURWITZ EVEN AS THE THRIFT WAS CRUMBLING THE GOVERNMENT ALSO HAS BEEN INVESTIGATING CERTAIN TRADES BY AN ARBITRAGE UNIT SET UP AT THE THRIFT WHICH MAY HAVE VIOLATED RESTRICTIONS ON THRIFT INVESTMENTS OR OTHER LAWS RESPONDING TO COST PRESSURES IN THE JURYCONSULTING BUSINESS ONE OF THE LEADERS IN THE FIELD HAS BEGUN A STREAMLINED LESS EXPENSIVE JURYRESEARCH SERVICE DONALD VINSON SAID HIS NEW VENTURE O'CONNOR & COHEN IS AIMED AT ENTICING LAWYERS IN SMALLSIZE AND MEDIUMSIZE CASES THAT MAY NOT WARRANT THE TENS OF THOUSANDS OF DOLLARS OFTEN SPENT ON JURY CONSULTANTS MR VINSON CHAIRMAN OF O'CONNOR & COHEN WILL CONTINUE AS CHAIRMAN OF DECISIONQUEST A LARGE JURYCONSULTING COMPANY IN LOS ANGELES THAT IS PART OWNER OF THE NEW VENTURE LIKE ALL OTHER ASPECTS OF LITIGATION JURY CONSULTING HAS FACED INTENSE COST CONCERNS IN RECENT YEARS TO DISTINGUISH ITSELF FROM DECISIONQUEST AND OTHER BIG JURYCONSULTING COMPANIES O'CONNOR & COHEN WILL PROVIDE DETAILED JURY ANALYSIS FOR A CASE BUT WON'T ADVISE ON HOW TO USE THE INFORMATION OTHER JURYCONSULTING COMPANIES ALSO HAVE BEGUN OFFERING NOFRILLS SERVICES IN RECENT YEARS O'CONNOR & COHEN BASED IN TORRANCE CALIF IS TOUTING AN UNDER10000 PACKAGE THAT INCLUDES TWO PRETRIAL TESTS OF A CASE BEFORE MOCK JURIES AND AN EVALUATION OF HOW THOUSANDS OF JURORS IN THE COMPANY'S DATABASE WOULD BE LIKELY TO RESPOND TO ISSUES IN THE CASE WADE LAMBERT CONTRIBUTED TO THIS ARTICLE 9404280107 940428 BUSINESS BRIEF AMERICA ONLINE INC COMPUTER SERVICE POSTS RISE IN FISCAL THIRDPERIOD PROFIT AMERICA ONLINE INC THE COMPUTER ONLINE SERVICE SAID AN INCREASE IN THE NUMBER OF SUBSCRIBERS PUSHED FISCAL THIRDQUARTER EARNINGS UP MORE THAN 67 EARNINGS FOR THE QUARTER ENDED MARCH 31 JUMPED TO 18 MILLION OR 21 CENTS A SHARE UP FROM 11 MILLION OR 16 CENTS A SHARE A YEAR EARLIER THE YEARAGO QUARTER INCLUDED A ONETIME TAX GAIN OF 224000 OR THREE CENTS A SHARE FOR THE VIENNA VA COMPANY REVENUE NEARLY TRIPLED TO 292 MILLION FROM 105 MILLION LAST YEAR THE COMPANY SAID SUBSCRIBER GROWTH WHICH ROCKETED TO 712000 FROM 245000 A YEAR AGO ACCOUNTED FOR MUCH OF THE GROWTH THE COMPANY SAID AN INCREASE IN USAGE BY SUBSCRIBERS ALSO CONTRIBUTED BECAUSE THE SERVICE COLLECTS HOURLY USAGE FEES 9404280106 940428 MARKETING & MEDIA TURNER'S INTEREST IN HOME SHOPPING TAKES A BREATHER BY ANITA SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA TURNER BROADCASTING SYSTEM INC'S INTEREST IN ACQUIRING HOME SHOPPING NETWORK INC HAS COOLED FOR NOW ACCORDING TO PEOPLE FAMILIAR WITH TALKS BETWEEN THE TWO COMPANIES TURNER BROADCASTING HAD BEEN INTERESTED IN BUYING THE ELECTRONIC RETAILER IF THE PRICE WERE RIGHT ACCORDING TO THESE INDIVIDUALS BUT WITH TURNER'S CLASS A AND B SHARES BOTH TRADING BELOW 20 A SHARE AND THE PRICE OF HOME SHOPPING'S STOCK CLIMBING ON TAKEOVER SPECULATION THE DEAL WHICH WOULD HAVE BEEN STRUCTURED AS A STOCK SWAP DID NOT MAKE FINANCIAL SENSE SAY PEOPLE CLOSE TO TURNER BROADCASTING WHILE TALKS BETWEEN THE TWO COMPANIES BROKE DOWN BEFORE TURNER BROADCASTING BROUGHT A DEAL TO ITS BOARD IT'S UNCLEAR WHETHER THE BOARD WOULD HAVE APPROVED THE TRANSACTION THE DEAL MIGHT HAVE FURTHER FUELED RIVALRY BETWEEN THE COMPANY'S TWO MOST POWERFUL BOARD MEMBERS JOHN MALONE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TELECOMMUNICATIONS INC WHICH CONTROLS THREE BOARD SEATS AND TIME WARNER INC WHICH ALSO CONTROLS THREE SEATS FOR ONE THING THE ACQUISITION WOULD HAVE STRENGTHENED THE ALLIANCE BETWEEN TURNER BROADCASTING CHAIRMAN RE TED TURNER AND MR MALONE SINCE HOME SHOPPING IS 80CONTROLLED BY LIBERTY MEDIA WHERE MR MALONE IS ALSO CHAIRMAN A STOCK SWAP FOR HOME SHOPPING COULD HAVE RESULTED IN A SIZABLE CHUNK OF EXTRA TURNER STOCK FOR LIBERTY MEDIA THAT COULD HAVE COMPLICATED RELATIONS WITH TIME WARNER WHICH HAS BEEN EXPLORING WAYS TO DIVEST ITSELF OF ITS TURNER STOCK WITHOUT INCURRING A MAJOR TAX HIT TIME WARNER AND TURNER OFFICIALS HAVE MET FROM TIME TO TIME TO DISCUSS SOME SORT OF ASSET EXCHANGE ACCORDING TO PEOPLE FAMILIAR WITH THE TALKS BUT THE TWO COMPANIES HAVE NEVER BEEN ABLE TO REACH A COMMON GROUND WHAT WE WANT TO GIVE VS WHAT THEY WANT WE'RE NOWHERE CLOSE SAYS ONE PERSON CLOSE TO TURNER BROADCASTING TURNER BROADCASTING WHOSE NETWORKS INCLUDE CABLE NEWS NETWORK TBS TNT AND THE CARTOON NETWORK WAS INTERESTED IN BUYING HOME SHOPPING TO TAKE ADVANTAGE OF CERTAIN ECONOMIES OF SCALE THAT COME FROM OWNING A NUMBER OF CABLE TV CHANNELS TURNER BROADCASTING'S SALES FORCE FOR INSTANCE CAN USE THE LEVERAGE OF ITS POPULAR NETWORKS TO ENCOURAGE CABLE OPERATORS TO OFFER NEW CHANNELS TURNER'S INTEREST IN HOME SHOPPING BEGAN WANING AS RUMORS OF AN IMPENDING DEAL LEAKED TO THE PRESS AND DROVE HOME SHOPPING'S STOCK PRICE TO BEYOND 14 A SHARE PEOPLE CLOSE TO TURNER SAY TWO INDUSTRY EXECUTIVES SAY TURNER BROADCASTING DID NOT WANT TO PAY THAT MUCH ESPECIALLY WITH ITS OWN SHARE PRICES DECLINING TURNER OFFICIALS DECLINED COMMENT 9404280105 940428 WHO'S NEWS PANHANDLE EASTERN CORP PANHANDLE EASTERN CORP HOUSTON ANN MAYNARD GRAY PRESIDENT OF THE DIVERSIFIED PUBLISHING GROUP SUBSIDIARY OF CAPITAL CITIES/ABC INC WAS NAMED A DIRECTOR OF THIS NATURALGAS PIPELINE CONCERN MS GRAY 48 YEARS OLD SUCCEEDS CHRISTOPHER C KRAFT 70 WHO RETIRED 9404280104 940428 WHO'S NEWS WYATT CO WYATT CO WASHINGTON BARBARA LEVY LANDES WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS BENEFITS AND MANAGEMENT CONSULTING COMPANY SUCCEEDING EDWARD D POSTAL WHO REMAINS IN A SENIOR POSITION MS LANDES HAD BEEN SENIOR VICE PRESIDENT OF FINANCE AND OPERATIONS AT NEW YORK TELEVISION STATION WWORTV INC 9404280103 940428 WHO'S NEWS MENTOR GRAPHICS CORP MENTOR GRAPHICS CORP WILSONVILLE ORE FORMER MICROSOFT CORP EXECUTIVE JON SHIRLEY WAS ELECTED CHAIRMAN OF THIS MAKER OF SOFTWARE USED IN ELECTRONIC CIRCUIT DESIGNS MR SHIRLEY 55 YEARS OLD WHO IS NOW A PRIVATE INVESTOR SUCCEEDS MENTOR'S COFOUNDER THOMAS H BRUGGERE WHO ANNOUNCED HIS RETIREMENT IN MARCH 9404280102 940428 MARKETING WATERBED MAKERS TARGET YOUNGER GROOVIER SNOOZERS BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL REMEMBER WATERBEDS IN THE 1970S THEY WERE THE COUNTERCULTURE'S PLEASURE ZONES DRESSED UP WITH BLACK LIGHTS AND PEACOCK FEATHERS THAT ALLURE HAS EBBED IN RECENT YEARS TODAY'S YOUNGER GENERATION TENDS TO VIEW WATERBEDS AS IMPRACTICAL TOO BULKY TOO EXPENSIVE AND ULTIMATELY TOO RETRO I JUST THINK OF DISCO MUSIC WHEN I THINK OF A WATERBED SAYS KIM CHRISTY 26 YEARS OLD A CHICAGO SPEECH PATHOLOGIST WATERBED MATTRESS SALES FELL TO 25 MILLION LAST YEAR DOWN 34 FROM A PEAK OF 38 MILLION IN 1988 BY CONTRAST TRADITIONAL MATTRESS SALES TOPPED 168 MILLION LAST YEAR NO WONDER THE WATERBED INDUSTRY IS TRYING TO PUT SOME BOUNCE BACK IN ITS BUSINESS BY TOUTING TECHNOLOGICAL AND DESIGN ADVANCES IN THE NEW BEDS ONE INNOVATION IS THE SOFTSIDED WATERBED WHICH FITS INTO STANDARDSIZE BED FRAMES FIBER THAT RIMS THE MATTRESS SIDES MAKES THE WATERBED EASIER TO REMOVE A REAL PROBLEM WITH EARLY WATERBEDS WHICH WERE SIMPLE VINYL POUCHES FILLED WITH WATER A MORE RECENT DESIGN CHANGE IS THE PLACEMENT OF A LAYER OF FIBER JUST BELOW THE SURFACE OF THE WATER WHICH HELPS GIVE FIRMER SUPPORT TO A SLEEPER'S BACK IN ADDITION MANY WATER MATTRESSES NOW CONTAIN TWO SEPARATE CHAMBERS SO THAT THE TEMPERATURE OF EACH CAN VARY WITH THESE PRODUCTS THE INDUSTRY IS COURTING BABYBOOMERS ITS MOST LOYAL AUDIENCE IT'S ALSO WOOING THE OVER60 GENERATION BY TOUTING THE HEALTH BENEFITS OF WATERBEDS IN TREATING ARTHRITIS AND EVEN BED SORES BUT THE INDUSTRY IS NOW TAKING SPECIAL AIM AT THE UNDER30 CROWD THE WATERBED COUNCIL THE INDUSTRY'S TRADE ASSOCIATION PROCLAIMS IN A PRINT CAMPAIGN THAT BOLDLY BORROWS FROM OLDSMOBILE IT'S NOT YOUR PARENTS' WATERBED WE'VE DONE A TERRIBLE JOB OF APPEALING TO GENERATION X SAYS MICHAEL GERAGHTY PRESIDENT OF STRATA FLOTATION BASED IN TORRENCE CALIF THE INDUSTRY WAS STARTED BY GUYS WHO WERE ALL 20 TO 25 YEARS OLD THEIR TARGET DEMOGRAPHIC GROUP WAS THEMSELVES HE SAYS MR GERAGHTY 45 BELIEVES THE INDUSTRY COULD CAPTURE HALF THE BEDDING MARKET IT HAS A 15 SHARE NOW IF CONSUMERS ONLY KNEW HOW MUCH BETTER WATERBEDS ARE TODAY BUT TO GET THAT MESSAGE ACROSS INDUSTRY OFFICIALS CONCEDE THEY MUST DESTROY THE WATERBED'S HIPPIECULTURE IMAGE AND ALSO DEAL WITH THOSE RECURRING WATERBED HORROR TALES OF FLOODED APARTMENTS AND SEASICK USERS THEY HOPE HUMOR AS WELL AS TRUTH IN ADVERTISING WILL WORK WITH THE YOUNGER SET STRATA FLOTATION TOGETHER WITH WATERBED EMPORIUM A WEST COAST RETAILER RUNS A TELEVISION COMMERCIAL THAT SHOWS TWO PEOPLE SLEEPING IN A WATERBED SEEMINGLY UNDISTURBED AMID THE RUMBLING OF AN EARTHQUAKE THE ANNOUNCER SAYS A STRATA MATTRESS IS SO DOWNRIGHT COMFORTABLE YOU CAN SLEEP THROUGH ALMOST ANYTHING PAUSE MAYBE THAT'S WHY THEY ARE SO POPULAR IN CALIFORNIA IN BALTIMORE STEVEN GINSBURG PRESIDENT AND OWNER OF WATERBED GALLERIES ADVERTISES ON HARDROCK RADIO STATIONS TO ATTRACT YOUNGER BUYERS AND HE OFFERS FINANCING INCENTIVES SUCH AS NO MONEY DOWN AND NO INTEREST PAYMENTS FOR A YEAR HE'S EVEN STOPPED CALLING HIS PRODUCT A WATERBED IT'S A FLOTATION MATTRESS HE DECLARES IN PHOENIX SUN VALLEY WATERBED GOES AFTER THE MTV GENERATION BY ADVERTISING WHERE ELSE ON MTV IF WE LOSE GENERATION X SAYS RICHARD HOUSE SUN VALLEY'S PRESIDENT IT WILL BE A PRETTY TOUGH LOSS TO RECOVER FROM SIMMONS CO AN ATLANTABASED MANUFACTURER EXPECTS TO DEMONSTRATE ITS PRODUCTS BY HOLDING WATERBED RACES ON CAMPUSES THROUGHOUT THE SOUTHEAST AND MIDWEST THIS FALL THE COMPANY WILL HAND OUT ACCOMPANYING TSHIRTS THAT READ I ONLY SLEEP WITH THE BEST THE WATERBED COUNCIL BASED IN MARLTON NJ HOPES A HALFHOUR INFOMERCIAL IT HAS PRODUCED WILL PERSUADE CONSUMERS OF THE TECHNOLOGICAL AND DESIGN ADVANCES IN TODAY'S WATERBEDS THE INFOMERCIAL AIRS IN THE MIDDLE OF THE NIGHT WHERE IT HAS A GOOD CHANCE OF CATCHING ITS TARGET AUDIENCE PEOPLE IN NEED OF A BETTER NIGHT'S SLEEP TO DISPEL CONSUMERS' WORRIES ABOUT UNDULATING WAVES THE INFOMERCIAL CLAIMS THAT NEW TOUGHER VINYL CASES FOR WATERBED MATTRESSES ALL BUT ELIMINATE WAVES THEN COPYING A LEXUS CAR COMMERCIAL THE INFOMERCIAL SHOWS A MAN WALKING ACROSS THE FOOT OF A WATERBED MATTRESS WITHOUT SPILLING A HALFFILLED GLASS OF WINE AT THE HEAD ONCE YOU'VE BEEN IN A WATERBED YOU KNOW YOU'LL NEVER GET SEASICK THE WOMAN ANNOUNCER SAYS AT PEPPERS WATERBEDS IN ELMHURST ILL MANAGER MICHAEL LANNAN PROMINENTLY DISPLAYS A WALL CHART THAT SHOWS HOW WATERBEDS DISTRIBUTE THE PRESSURE OF THE BODY'S WEIGHT MORE EVENLY THAN INNERSPRING MATTRESSES THUS PROMOTING SOUNDER SLEEP HIS SALES PITCH INCLUDES A CLAIM THAT WATERBED SLEEPERS TOSS AND TURN TWOTHIRDS LESS THAN PEOPLE WHO SLEEP ON INNERSPRING MATTRESSES YOU SPENT THE FIRST NINE MONTHS OF YOUR LIFE IN WATER AND YOU SHOULD HAVE NEVER LEFT IT HE SAYS CONTENDING THAT THE QUALITY OF ONE'S WORK DEPENDS LARGELY ON GETTING A GOOD NIGHT'S SLEEP PERHAPS THE BIGGEST CONCESSION TO GENERATION X THAT MR LANNAN'S STORE HAS MADE IS SELLING FUTONS THE MATTRESS OF CHOICE FOR TODAY'S HIPSTERS FUTONS ARE COTTONFILLED MATTRESSES THAT LOOK LIKE OVERSIZED BEDROLLS THEY ARE POPULAR AMONG YOUNG PEOPLE BECAUSE THE MATTRESSES CAN CONVERT EASILY FROM A BED TO A COUCH WHILE NOTING THAT FUTON SALES ARE STRONG MR LANNAN MAINTAINS THAT HIS PRIMARY OBJECTIVE FOR OFFERING FUTONS IS TO ATTRACT PROSPECTIVE WATERBED CUSTOMERS WE CONVERT THEM OVER TO FLOTATION SLEEP HE SAYS 9404280101 940428 INTERNATIONAL DEMOCRACY MOVEMENT GROWS SLOWLY IN SHANGHAI DESPITE ATTEMPTS BY LOCAL AUTHORITIES TO QUELL IT BY JOSEPH KAHN STAFF REPORTER OF THE WALL STREET JOURNAL SHANGHAI CHINA SHANGHAI'S LEADERS REGARD THEIR CITY AS AN EXEMPLAR OF CHINA'S PLAN TO GROW WEALTHY WITHOUT CHALLENGING THE POLITICAL STATUS QUO SHANGHAI WANTS TO BE DENG XIAOPING'S MODEL CITY SAID ONE FORMER CITY GOVERNMENT EXECUTIVE THERE CAN'T BE MUCH DISSENT HERE THAT WOULD MEAN THE OFFICIALS DIDN'T DO THEIR WORK WELL HOWEVER A SMALL BUT INCREASINGLY VIGOROUS COMMUNITY OF ACTIVISTS SEES THINGS DIFFERENTLY NEW GROUPS CONCERNED WITH LABOR RIGHTS AND CORRUPTION HAVE JOINED SHANGHAI'S HANDFUL OF EXPERIENCED DEMOCRACY CAMPAIGNERS THIS SPRING SOME BELIEVE A NEW LEVEL OF POLITICAL AWARENESS WILL FOLLOW THE CITY'S RECENT ECONOMIC SUCCESS FOR EVERY NEW FOREIGN BANK THAT STARTS BUSINESS IN SHANGHAI ANOTHER GRASSROOTS GROUP BELIEVING IN DEMOCRACY ALSO RISES SAYS YANG ZHOU ONE OF THE CITY'S OLDEST AND MOST RESPECTED ACTIVISTS THE GOVERNMENT SHOULD BE CONCERNED IT IS SHANGHAI RUNS SECOND ONLY TO BEIJING IN ANTIGOVERNMENT ACTIVITY WESTERN DIPLOMATS SAY ABOUT A DOZEN TIMES IN THE PAST TWO MONTHS LOCAL AUTHORITIES HAVE DETAINED DEMOCRACY ACTIVISTS TO PREVENT THREATENED PROTESTS AT LEAST TWO DISSIDENTS HAVE BEEN BEATEN BY THUGS THEY SAID WERE SENT BY THE POLICE ONE OF THOSE BEATEN A STUDENT WHO HAD STUDIED IN JAPAN SAID HE RECEIVED MINOR BRAIN DAMAGE FROM WHICH IT TOOK WEEKS TO RECOVER THE SECOND A WIDELY RECOGNIZED HUMANRIGHTS LEADER NAMED WANG FUCHEN HAS SINCE DISAPPEARED HIS FAMILY AND FRIENDS HAVE RECEIVED NO INFORMATION ABOUT HIS WHEREABOUTS BUT THEY ASSUME STATE POLICE ARRESTED HIM BY MOST ACCOUNTS THE CRACKDOWNS HAVE NOT STOPPED THE DISSIDENT NETWORK FROM SPREADING IN MARCH MR YANG AND MR WANG HELPED ORGANIZE A PETITION DRIVE CALLING FOR DEMOCRATIC CHANGE AND LABOR RIGHTS TO WHICH 54 ACTIVISTS MANY PREVIOUSLY UNWILLING TO REVEAL THEMSELVES SIGNED THEIR NAMES BAO GE ANOTHER LEADING DISSIDENT LED A PUBLIC DRIVE FOR WAR REPARATIONS FROM JAPAN DURING A TRIP TO CHINA BY FORMER JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA POLICE JAILED HIM DURING MR HOSOKAWA'S VISIT A NUMBER OF OTHER ACTIVISTS IN FAVOR OF POLITICAL REFORM HAVE OPERATED BEHIND THE SCENES AND WITHOUT MUCH ATTENTION FROM THE FOREIGN MEDIA FROM A CRAMPED OFFICE IN AN OUTLYING DISTRICT OF SHANGHAI A PICTURE TAKEN IN TIANANMEN SQUARE DURING THE 1989 PROTESTS ABOVE HIS DESK A BUSINESSMAN RUNS A KIND OF DISSIDENT INFORMATION SERVICE EQUIPPED WITH A MOBILE PHONE BEEPERS AND A BAND OF SUPPORTERS THE BUSINESSMAN SAYS HE KEEPS TRACK OF DEVELOPMENTS AROUND THE CITY THAT AUTHORITIES STRIVE TO KEEP SECRET AMONG HIS RECENT DISCOVERIES BUS DRIVERS STRUCK FOR SEVERAL DAYS AFTER BODYGUARDS OF A RANKING COMMUNIST PARTY OFFICIAL BEAT A BUS DRIVER NEARLY TO DEATH IN A TRAFFIC DISPUTE RETIRED WORKERS PROTESTED IN FRONT OF SHANGHAI'S CITY HALL CURSING CITY LEADERS FOR THEIR FAILURE TO CONTROL INFLATION THE NUMBER TWO BAND WEAVING FACTORY WENT BANKRUPT THE FIRST STATERUN COMPANY IN SHANGHAI TO FAIL ALL THOSE INCIDENTS WERE CONFIRMED INDEPENDENTLY THE SHANGHAI GOVERNMENT AND LOCAL MEDIA ACKNOWLEDGED NONE OF THEM A MANAGER OF THE NUMBER TWO BAND WEAVING FACTORY SAID ON THE TELEPHONE THAT SHANGHAI MAYOR HUANG JU HAD PERSONALLY ORDERED A NEWS BLACKOUT ABOUT THE FACTORY'S BANKRUPTCY TO PREVENT UNREST AMONG THE THOUSANDS OF OTHER TEXTILE PLANT WORKERS WHO FEAR FOR THEIR JOBS HE DECLINED TO IDENTIFY HIMSELF OR TO GRANT A REPORTER'S REQUEST FOR A FORMAL INTERVIEW THE CELLULAR PHONETOTING BUSINESSMAN SPREAD THE NEWS WE MAKE SURE INFORMATION GETS AROUND HE SAID WE PLANT A SEED IN PEOPLE'S MINDS LATER IT WILL BLOSSOM INFLATION NOW RUNS AT 25 IN CHINA'S MAJOR CITIES THE GOVERNMENT HAS ACKNOWLEDGED A SERIOUS PROBLEM WITH CORRUPTION A FINANCIAL CRUNCH HAS FORCED BANKS TO CUT OFF SOME AILING STATE ENTERPRISES RESULTING IN JOB LOSSES FOR REDUNDANT WORKERS ALL THAT SEEMS LIKE FERTILE MATERIAL FOR POPULAR PROTESTS WHIPPED ON BY ACTIVISTS I WOULDN'T RULE OUT SOME KIND OF ACTION ON ONE OF THE MAJOR ANNIVERSARIES THIS SPRING SAID MR YANG NOW 51 YEARS OLD WHO HAS PARTICIPATED IN PROTEST MOVEMENTS SINCE THE LATE 1970S WE'RE PLANNING TO COMMEMORATE THE FIFTH ANNIVERSARY OF THE TIANANMEN MASSACRE MAYBE PEOPLE WILL PARTICIPATE OTHERS REMAIN SKEPTICAL POLICE PICK UP DISSIDENTS AT THE SLIGHTEST SIGN OF UNREST THE POLICE CONTROL SHANGHAI AND BEIJING VERY FORCEFULLY THEY WILL NOT LET ANYTHING HAPPEN SAID ONE ACTIVIST THE CITY HAS ALSO SOUGHT TO STAVE OFF PROTESTS WITH MONETARY HANDOUTS ONE WESTERN DIPLOMAT SAID SHANGHAI IS THE ONLY CITY IN CHINA TO DIRECTLY INDEX PENSIONS TO INFLATION THOUGH RETIREES STILL COMPLAIN THAT THEIR INCOMES DON'T KEEP PACE WITH REAL PRICE INCREASES FOR EVERYDAY NECESSITIES LIKE GREEN VEGETABLES AND ELECTRICITY SOME LAIDOFF WORKERS HAVE BEEN PROVIDED SPACE TO OPEN RESTAURANTS OR KARAOKE LOUNGES VENTURES THEY COULD NEVER AFFORD ON THEIR OWN WHAT'S CLEAR HOWEVER IS THAT SHANGHAI'S RAPID ECONOMIC GROWTH WHICH REACHED ALMOST 15 IN 1993 DOES NOT GUARANTEE SOCIAL STABILITY ROAD AND BUILDING PROJECTS THOUGH WIDELY ACCEPTED AS NECESSARY HAVE DISPLACED MANY THOUSANDS OF RESIDENTS WITHOUT THEIR CONSENT AND WITH WHAT THEY CONSIDER INADEQUATE COMPENSATION VIRTUALLY ALL MUST MOVE TO THE SUBURBS OFTEN TWO TO FOUR HOURS AWAY BY PUBLIC TRANSPORTATION FROM THE CITY CENTER NOT FAR AWAY AT THE LEADING SYMBOL OF THE NEW SHANGHAI THE STOCK EXCHANGE SPIRITS ARE NOT MUCH HIGHER SINCE ITS HIGH IN FEBRUARY 1993 THE STOCK MARKET INDEX HAS FALLEN ABOUT 65 WIPING OUT MANY LIFE SAVINGS PEOPLE BLAME THE GOVERNMENT THIS RANGE OF DISCONTENT SEEMS UNLIKELY TO COALESCE INTO AN ORGANIZED OPPOSITION MOVEMENT SOON ACTIVISTS APPEAR TO HAVE ONLY LIMITED COMMUNICATION AMONG THEMSELVES AND NO CENTRAL LEADERSHIP THOSE WHO CLAIM TO HAVE SOLID CONNECTIONS AT THE GRASS ROOTS ADMIT THAT THEY MOSTLY COLLECT INFORMATION RATHER THAN ACT ON IT STILL WHERE THERE'S LOOSE TINDER THERE MAY BE A FIRE WE HAVE MORE HAPPENING THIS YEAR THAN AT ANY TIME SINCE 1989 MR YANG SAID PEOPLE KNOW THERE CAN'T BE STABILITY WITHOUT REFORM 9404280100 940428 DIVIDEND NEWS ZAPATA CORP ZAPATA CORP HOUSTON SAID ITS BOARD APPROVED A 1FOR5 REVERSE SPLIT OF ITS COMMON STOCK THE NATURAL GAS PRODUCER AND SERVICE COMPANY ALSO SAID IT WILL BEGIN PAYING AN ANNUAL DIVIDEND OF 14 CENTS A SHARE TO BE PAID AT A QUARTERLY RATE OF 35 CENTS A SHARE BEGINNING IN JULY THE REVERSE SPLIT TAKES EFFECT MAY 3 AND WILL REDUCE THE NUMBER OF SHARES OUTSTANDING TO 317 MILLION FROM 1583 MILLION 9404280099 940428 CIPHER PROBE POPULARITY OVERSEAS OF ENCRYPTION CODE HAS THE US WORRIED GRAND JURY PONDERS IF CREATOR EXPORTED' THE PROGRAM THROUGH THE INTERNET GENIE IS OUT OF THE BOTTLE' BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL BOULDER COLO DURING THE BATTLE BETWEEN BORIS YELTSIN AND THE RUSSIAN PARLIAMENT LAST OCTOBER WITH RUSSIAN FREEDOM HANGING IN THE BALANCE SOFTWARE AUTHOR PHILIP ZIMMERMANN RECEIVED AN ELECTRONICMAIL MESSAGE FROM LATVIA IF DICTATORSHIP TAKES OVER RUSSIA IT READ YOUR PGP IS WIDESPREAD FROM BALTIC TO FAR EAST NOW AND WILL HELP DEMOCRATIC PEOPLE IF NECESSARY THANKS PGP FOR PRETTY GOOD PRIVACY IS A PROGRAM WRITTEN BY MR ZIMMERMANN FOR SCRAMBLING COMPUTER MESSAGES DISSIDENTS AROUND THE WORLD USE IT TO PROTECT THEIR ELECTRONIC COMMUNICATIONS FROM THE PRYING EYES OF SECRET POLICE BUT PGP HAS A DARKER SIDE IN SACRAMENTO CALIF POLICE LAMENT THAT LAST YEAR PGP ENCRYPTION BLOCKED THEM FROM READING THE COMPUTER DIARY OF A CONVICTED PEDOPHILE AND FINDING CRITICAL LINKS IN A SUSPECTED CHILDPORNOGRAPHY RING ADMIRED BY FREEDOM LOVERS AND CRIMINALS ALIKE PGP IS ONE MORE THING UNCRACKABLE OR AS CLOSE TO IT AS A SECRET CODE HAS EVER BEEN EVEN US GOVERNMENT SNOOPERS CAN'T BREAK IT AND THAT PLACES MR ZIMMERMANN A PAUNCHY BEARDED 40YEAROLD COMPUTER CONSULTANT WHO IS FAST BECOMING A FOLK HERO ON THE INFORMATION HIGHWAY IN PERIL A FEDERAL GRAND JURY IN SAN JOSE CALIF IS EXAMINING WHETHER HE BROKE LAWS AGAINST EXPORTING ENCRYPTION CODES THE FEDERAL BUREAU OF INVESTIGATION SUSPECTS THAT MR ZIMMERMANN HAD A ROLE IN PUTTING PGP ON THE INTERNET THE WORLDWIDE WEB OF COMPUTER NETWORKS MAKING IT EASY FOR FOREIGN GOVERNMENTS AND TERRORISTS TO USE IT AND RENDER THEIR COMPUTER TRAFFIC IMPERVIOUS TO US SPYING MR ZIMMERMANN'S LAWYER SAYS HIS CLIENT COULD FACE CHARGES CARRYING A PRISON SENTENCE OF UP TO 51 MONTHS THE WORLDWIDE USE OF MR ZIMMERMANN'S SOFTWARE HAS ALTERED FOREVER NOTIONS OF GOVERNMENT SURVEILLANCE ELECTRONIC PRIVACY AND EXPORT BANS ON CRYPTOGRAPHY UNTIL RECENTLY DIFFICULT CODES COULD ALWAYS BE DECIPHERED BY STEALING THE KEY THAT UNRAVELED THE ENCRYPTION PUZZLE DURING WORLD WAR II FOR EXAMPLE THE ALLIES CAPTURED A GERMAN ENCRYPTING ENIGMA MACHINE ALLOWING THEM TO CRACK NAZI COMMUNICATIONS US CONVOYS TAKING MUNITIONS TO BRITAIN USED IT TO HELP THEM ELUDE GERMAN UBOATS BUT PGP LIKE A GROWING NUMBER OF ENCRYPTION PROGRAMS TAKES ADVANTAGE OF A NEW MATHEMATICALLY SOPHISTICATED ENCRYPTING TECHNOLOGY THAT REQUIRES TWO DIFFERENT KEYS BOTH OF WHICH ARE NECESSARY TO UNLOCK THE PUZZLE THE SENDER NEEDS ONLY ONE TO SEND A MESSAGE THE RECEIVER DECODES THE MESSAGE WITH THE SECOND KEY WHICH NEVER NEEDS TO LEAVE HIS COMPUTER WHERE IT CAN BE PROTECTED BY PASSWORDS FROM EASY PILFERING ALTHOUGH THE MATHEMATICS ARE DAUNTING THE PROGRAM MAKES THE PROCESS QUICK AND STRAIGHTFORWARD IN AN AGE WHEN COMPUTERS CAN WHIP UP CODES OF DEVILISH COMPLEXITY AND ZIP THEM AROUND THE GLOBE FOR ANYONE WITH A PERSONAL COMPUTER THE LOT OF THE ENCRYPTION POLICEMAN IS NOT A HAPPY ONE THE INTERNET ALONE REACHES 20 MILLION PEOPLE THE GENIE IS OUT OF THE BOTTLE SAYS LEONARD MIKUS PRESIDENT OF VIACRYPT A PHOENIX COMPANY THAT SELLS A 100 VERSION OF PGP IN THE US THERE'S NO WAY ANYBODY CAN STOP THE TECHNOLOGY THE AVAILABILITY WORLDWIDE OF ENCRYPTION PROGRAMS MAKES EXPORT CONTROLS A FARCE SAYS STEPHEN WALKER A FORMER TOP NATIONAL SECURITY AGENCY CRYPTOGRAPHER WHO NOW IS PRESIDENT OF TRUSTED INFORMATION SYSTEMS INC A RESEARCH FIRM IN GLENWOOD MD HE SAYS HE KNOWS EUROPEAN GOVERNMENT OFFICIALS WHO USE PGP FOR THEIR PERSONAL EMAIL WE HAVE TO RECOGNIZE WHAT'S OUT THERE MR ZIMMERMANN A TWICEARRESTED ANTINUCLEARWAR ACTIVIST BECAME AN ELECTRONICFREEDOM FIGHTER IN 1990 AT THAT TIME THE FBI AND THE NSA WERE PUSHING FOR A LAW THAT WOULD BAN CERTAIN FORMS OF ENCRYPTION AND FORCE COMPUTER MAKERS TO BUILD INTO THEIR MACHINES HARDWARE THAT WOULD ALLOW LAWENFORCEMENT AGENCIES TO DECIPHER ANY CODE THAT WAS USED THE PROPOSAL OUTRAGED CONFIDENTIALITYMINDED CORPORATIONS AND COMPUTER USERS ALIKE EVENTUALLY IT WAS DROPPED BUT WHILE THE ISSUE WAS STILL OPEN MR ZIMMERMANN TOOK IT UPON HIMSELF TO THWART THE GOVERNMENT'S PURPOSE BY WORKING ON WHAT CAME TO BE PGP AN IMPENETRABLE CODE THAT COULD BE USED BY VIRTUALLY ANYONE I DID IT TO INOCULATE THE BODY POLITIC FROM THE DANGER OF GOVERNMENT PRYING HE SAYS MR ZIMMERMANN STOPPED CONSULTING AND HOLED UP IN THE COMPUTERFILLED WORKROOM IN THE BACK OF A BUNGALOW IN BOULDER WHERE HE LIVES WITH HIS WIFE AND TWO CHILDREN HE SAYS HE SPENT SIX MONTHS OF 12HOUR DAYS WRITING THE PROGRAM DRAINED HIS FAMILY'S SAVINGS AND MISSED FIVE MONTHS OF MORTGAGE PAYMENTS HE FINISHED THE PROGRAM IN JUNE 1991 AND NAMED IT PRETTY GOOD PRIVACY IN DEFERENCE TO RALPH'S PRETTY GOOD GROCERY IN HUMORIST GARRISON KEILLOR'S PRAIRIE HOME COMPANION RADIO SHOW WHEN MR ZIMMERMANN WAS THROUGH HE GAVE THE ENCRYPTION PROGRAM TO FRIENDS ONE OF THEM WHOM HE WON'T IDENTIFY PLACED IT ON THE INTERNET SOMETIME AROUND JUNE OR JULY 1991 HE SAYS ONCE THERE ANY COMPUTER USER IN THE WORLD WITH ACCESS TO THE INTERNET COULD DOWNLOAD IT ALMOST IMMEDIATELY MANY DID BUT FEDERAL LAWS COVERING MUNITIONS PROHIBIT EXPORTING ENCRYPTION SOFTWARE WITHOUT A LICENSE A YEAR AGO US CUSTOMS SERVICE AGENTS ASKED MR ZIMMERMANN HOW HIS SOFTWARE WENT OVERSEAS IN SEPTEMBER THE US ATTORNEY'S OFFICE IN SAN JOSE WHICH HAS EXPERTISE ON COMPUTER CRIMES BECAUSE OF ITS PROXIMITY TO SILICON VALLEY TOLD MR ZIMMERMANN HE WAS A TARGET OF AN INVESTIGATION MR ZIMMERMANN SAYS HE NEITHER SENT PGP OVERSEAS NOR POSTED IT ON COMPUTER SYSTEMS RSA DATA SECURITY INC IS ALSO ANGRY AT MR ZIMMERMANN THE COMPUTERSECURITY FIRM SAYS THAT IN CREATING PGP MR ZIMMERMANN USED ONE OF ITS PATENTED CRYPTOGRAPHIC ALGORITHMS WITHOUT PERMISSION AFTER RSA HAD DENIED HIM A FREE LICENSE WE SOMETIMES JOKE THAT PGP STANDS FOR PRETTY GOOD PIRACY' SAYS JAMES BIDZOS PRESIDENT OF THE REDWOOD CITY CALIF FIRM WHAT HE DID WAS SIMPLE IN THIS BUSINESS YOU SIMPLY DON'T RIP OFF PEOPLE'S INTELLECTUAL PROPERTY RSA WHICH SELLS ITS TECHNOLOGY TO MOST OF THE MAJOR SOFTWARE MAKERS AND MAKES AN ENCRYPTION PROGRAM CALLED MAILSAFE HASN'T SUED MR ZIMMERMANN BUT IT HAS ASSERTED ITS LEGAL RIGHTS IN LETTERS TO ANYONE IT CATCHES USING PGP AS A RESULT FEW COMPANIES USE PGP AND MANY UNIVERSITIES AND COMMERCIAL ONLINE SERVICES KEEP IT OFF THEIR COMPUTERS MR ZIMMERMANN SAYS THAT TECHNICALLY HE HASN'T VIOLATED RSA PATENTS BECAUSE HE DIDN'T SELL THE SOFTWARE UNTIL HE SIGNED THE DEAL WITH VIACRYPT WHICH DOES HAVE A LICENSE TO USE THE ALGORITHM HE NOTES THAT THE ONLINE DOCUMENTATION FOR PGP SUGGESTS THAT PEOPLE WHO USE THE PROGRAM SHOULD CONTACT RSA ABOUT A LICENSE FOR MANY INDIVIDUALS PGP HAS BECOME SOMETHING OF A STANDARD FOR ENCRYPTED EMAIL ON THE INTERNET A GLENDALE CALIF COLLEGE STUDENT WHO GOES BY THE NAME OF MONK ON THE INTERNET SAYS IT'S FREE IT'S SOLID IT PROMOTES PRIVACY HOW CAN YOU ARGUE WITH IT WHILE THE NSA WANTS TO KEEP CONTROL OF ENCRYPTION THIS TEENY LITTLE COMPANY WITH A WONDERFUL HERO HAS CHANGED THAT SAYS THOMAS LIPSCOMB PRESIDENT OF INFOSAFE CORP A NEW YORK DEVELOPER OF SECURITY DEVICES FOR CDROM PUBLISHERS FEAR THAT HACKERS MAY INTERCEPT EMAIL HAS SPAWNED A GRASSROOTS CULT OF PGP USERS IN THE INTERNET COMMUNITY CRAIG MCKIE A SOCIOLOGY PROFESSOR AT CARLETON UNIVERSITY IN OTTAWA ENCRYPTS CHAPTERS OF A NEW BOOK WITH PGP AS HE SENDS THEM TO HIS PUBLISHER FEARING THAT OTHERWISE A GAZILLION COPIES WOULD GO FLYING OFF INTO THE NIGHT LANCE COTTRELL AN ASTRONOMER AT THE UNIVERSITY OF CALIFORNIA AT SAN DIEGO SAYS HE USES PGP TO SHARE UNPUBLISHED OBSERVATIONS WITH COLLABORATORS TO KEEP OTHERS FROM CLAIMJUMPING A DISCOVERY PGP ALSO HELPS MAKE THE OTHERWISE LEAKY INTERNET SAFE FOR COMMERCE MEMBERS OF THE ELECTRONIC FRONTIER FOUNDATION A GROUP THAT ADVOCATES ELECTRONIC FREE SPEECH CAN PAY DUES BY SENDING PGPENCRYPTED CREDITCARD NUMBERS OVER COMPUTER NETWORKS S SOLOWAY INC A PALO ALTO CALIF ACCOUNTING FIRM SCRAMBLES BACKUP TAPES WITH PGP SO THAT CLIENTS NEEDN'T WORRY ABOUT LOST CONFIDENTIALITY IF THE TAPES ARE LOST OR STOLEN KENNETH BASS A WASHINGTON LAWYER COMMUNICATES WITH SOME CLIENTS AND OTHER ATTORNEYS IN PGP CODE FOR HUMANRIGHTS ADVOCATES THE CONSEQUENCES OF COMPROMISED SOURCES CAN BE DEVASTATING DANIEL SALCEDO WHO WORKS FOR THE HUMAN RIGHTS PROJECT OF THE AMERICAN ASSOCIATION FOR THE ADVANCEMENT OF SCIENCE IN WASHINGTON TEACHES ACTIVISTS IN EL SALVADOR AND GUATEMALA TO USE PGP IN THIS BUSINESS LOTS OF PEOPLE HAVE BEEN KILLED MR SALCEDO SAYS ALAN DAWSON A WRITER LIVING IN THAILAND SAYS REBELS OPPOSING THE REGIME IN NEIGHBORING BURMA ARE USING PGP TO ENCRYPT INFORMATION SENT AMONG REBEL GROUPS BEFORE USE OF PGP BECAME WIDESPREAD MR DAWSON WROTE MR ZIMMERMAN CAPTURED DOCUMENTS HAVE RESULTED DIRECTLY IN ARRESTS INCLUDING WHOLE FAMILIES AND THEIR TORTURE AND DEATH BUT INVESTIGATORS SAY PGP AND OTHER ENCRYPTION SYSTEMS AID CRIME WILLIAM SPERNOW A COMPUTERCRIME SPECIALIST WITH SEARCH GROUP A FEDERALLY FUNDED POLICETRAINING FIRM IN SACRAMENTO CALIF PREDICTS CRIMINALS WILL ROUTINELY ENCRYPT INFORMATION WITHIN TWO YEARS THIS COULD SIGNAL THE END OF COMPUTER FORENSICS BEFORE IT EVEN GETS OFF THE GROUND HE SAYS MR BIDZOS OF RSA SAYS HE HAS HAD SEVERAL CALLS FROM POLICE IN THE MIAMI AREA ASKING FOR HELP IN DECRYPTING INFORMATION ON COMPUTERS SEIZED IN DRUG RAIDS HE SAYS THE ENCRYPTION IS UNBREAKABLE MR SPERNOW STUDIED ONE CASE WHERE A CRIMINAL CONDUCTED A FRAUD BY KEEPING A DOUBLE SET OF BOOKS THE REAL SET ENCRYPTED IN PGP MR ZIMMERMANN SAYS HE IS DISTURBED BY CRIMINAL USE OF ENCRYPTION BUT THINKS THE BENEFIT OF PROVIDING ELECTRONIC PRIVACY TO EVERYONE OUTWEIGHS THE COSTS IT IS IMPOSSIBLE TO OBTAIN REAL PRIVACY IN THE INFORMATION AGE WITHOUT GOOD CRYPTOGRAPHY HE SAYS ENCRYPTION ALSO RAISES SOME EYEBROWS INSIDE CORPORATIONS MR BASS THE WASHINGTON LAWYER NOTES THAT MOST COMPANIES ASSERT A RIGHT TO READ EMPLOYEES' EMAIL SINCE IT IS COMPOSED ON THEIR COMPUTERS AND TRAVELS THEIR NETWORKS WHAT WILL THEY DO WHEN PEOPLE START ENCRYPTING MESSAGES TO EACH OTHER HE ASKS WITHOUT EMAIL ENCRYPTION WIDESPREAD SURVEILLANCE WOULD BE EASIER IN THEORY CIA FBI AND POLICE COMPUTERS COULD TAP TELEPHONE CABLES AND LOOK FOR KEY WORDS SUCH AS MISSILE OR BOMB TO FIND PEOPLE WHO NEEDED CLOSER WATCHING MR ZIMMERMANN SAYS THIS IS ANALOGOUS TO DRIFTNET FISHING COMPUTERIZED ENCRYPTION IS A TECHNOLOGY THAT FOR A CHANGE BENEFITS OUR CIVIL LIBERTIES HE ADDS THE GOVERNMENT LAWENFORCEMENT AGENCIES HAVE BENEFITED FROM MANY TECHNOLOGIES SUCH AS TELEPHONES THAT MADE WIRETAPPING UNDETECTABLE IN FACT MR ZIMMERMANN IS CURRENTLY SEEKING FUNDING FOR A PROJECT TO CREATE A PHONE THAT USES A PERSONAL COMPUTER EQUIPPED WITH A MICROPHONE AND A SPEAKER TO ENCRYPT VOICE CONVERSATIONS JUST AS PGP ENCRYPTS DATA EXCHANGES MR ZIMMERMANN HAS BEEN SUSPICIOUS OF THE GOVERNMENT FOR A LONG TIME AFTER GROWING UP IN BOCA RATON FLA WHERE A CHILDREN'S BOOK ON SECRET WRITING FIRST INTERESTED HIM IN CODES HE MOVED TO BOULDER IN 1978 AND WORKED AS A COMPUTER ENGINEER AFTER HE WAS LAID OFF BY STORAGE TECHNOLOGY CORP IN 1985 ALONG WITH 3000 OTHERS HE BECAME A CONSULTANT SPECIALIZING IN TELECOMMUNICATIONS AND DATA SECURITY IN THE 1980S HE BECAME WORRIED ABOUT THE NUCLEARARMS RACE HE AND HIS WIFE INVESTIGATED MOVING TO NEW ZEALAND BUT THEY STAYED IN BOULDER AN ANTIWAR HOTBED WHERE HE LECTURED ON ARMS POLICY MR ZIMMERMANN SAYS HE HAS NOT BEEN ACTIVE ON THE INTERNET AND ADDS I'M NOT A CIPHERPUNK I WEAR A SUIT WHEN I VISIT CLIENTS BUT HE SAYS HE AGREES WITH THE ELECTRONIC FREESPEECH IDEALS OF THE CIPHERPUNKS THE INTERNET HABITUES WHO FILL CYBERSPACE WITH BLISTERING CRITICISMS ABOUT THE US GOVERNMENT'S PROPOSAL TO PROMOTE USE OF THE SOCALLED CLIPPER CHIP THE CHIP WOULD LET COMPANIES AND INDIVIDUALS ENCRYPT SENSITIVE COMMUNICATIONS BUT THE GOVERNMENT WOULD HOLD A KEY MAKING IT POSSIBLE WITH COURT PERMISSION TO DECIPHER THEM FOR LAWENFORCEMENT OR NATIONALSECURITY PURPOSES MR ZIMMERMANN THINKS THE CLIPPER PROJECT CONFIRMS THE NEED FOR PGP BY SHOWING THE GOVERNMENT'S DESIRE TO READ ELECTRONIC MAIL THEY'RE TREATING US LIKE AN ENEMY FOREIGN POPULATION HE SAYS 9404280098 940428 TECHNOLOGY & HEALTH CLINTON URGES SAUDIS TO PICK AT&T FOR PACT BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL RIYADH SAUDI ARABIA PRESIDENT CLINTON URGED SAUDI ARABIA'S KING FAHD IN A LETTER TO CONSIDER A BID FROM AT&T CORP FOR THE MULTIBILLIONDOLLAR MODERNIZATION OF THE NATION'S TELEPHONE SYSTEM SECRETARY OF STATE WARREN CHRISTOPHER WHO DISCUSSED THE CONTRACT DURING A 70MINUTE MEETING HERE YESTERDAY WITH KING FAHD SAID AFTERWARD THAT I'M SURE THEY WILL GIVE SERIOUS CONSIDERATION TO THE PROPOSAL MADE BY AT&T A FACT SHEET PROVIDED BY US OFFICIALS ESTIMATED THAT THE PROJECT COULD COST 4 BILLION TO 5 BILLION MR CHRISTOPHER ON THE FIRST STOP OF A MIDDLE EAST SWING ALSO DISCUSSED THE IMPORTANCE OF MAINTAINING UNITED NATIONS SANCTIONS ON IRAQ WITH SAUDI ARABIA AND OTHER MEMBERS OF THE GULF COOPERATION COUNCIL THE GULF STATES STRONGLY ENDORSED MR CHRISTOPHER'S VIEW THE SECRETARY OF STATE RESPONDING TO A QUESTION SAID HE MAY MEET AS SOON AS NEXT WEEK WITH FOREIGN MINISTERS FROM RUSSIA AND EUROPE TO REVIEW THE PROGRESS OF EFFORTS TO TRY TO FIND A NEGOTIATED SOLUTION TO THE TWOYEAROLD WAR IN BOSNIA THE TELEPHONE CONTRACT INVOLVES CONVERTING SAUDI ARABIA TO A DIGITALTELEPHONE SYSTEM THE PROJECT INCLUDES SWITCHING SYSTEMS FIBER OPTICS MICROWAVE SATELLITE AND SUBSCRIBER RADIO SERVICES THE FACT SHEET SAID IN HIS LETTER MR CLINTON SAID I UNDERSTAND THAT YOUR GOVERNMENT MAY BE NEARING A DECISION ON THE TELECOMMUNICATIONS EXPANSION I HOPE AT&T WHICH HAS LONG BEEN A MARKET LEADER WILL RECEIVE EVERY OPPORTUNITY TO ESTABLISH ITSELF AS SAUDI ARABIA'S PREFERRED PARTNER BOTH FOR QUALITY AND COST IN THE PROJECT AT&T OFFICIALS WELCOMED MR CLINTON'S INTERCESSION WE'RE PLEASED AT THE CONSIDERABLE SUPPORT WE'VE RECEIVED FROM THE ADMINISTRATION IN THIS MATTER AN AT&T SPOKESMAN SAID THE COMPANY HAS BEEN PRESSING THE GOVERNMENT TO SUPPORT ITS FORAYS OVERSEAS PARTICULARLY IN MARKETS SUCH AS CHINA THE MIDDLE EAST AND LATIN AMERICA IN ADDITION TO AT&T OTHER COMPANIES BIDDING ARE NORTHERN TELECOM LTD CANADA SIEMENS AG GERMANY ALCATEL NV FRANCE AND TELEFON AB LM ERICSSON/NEC CORP SWEDEN/JAPAN THIS ISN'T THE FIRST TIME MR CLINTON HAS PITCHED AMERICAN GOODS TO THE SAUDI KING LOBBYING BY THE PRESIDENT LAST YEAR HELPED MCDONNELL DOUGLAS CORP AND BOEING CO WIN A 6 BILLION CONTRACT FOR JET TRANSPORTS FOR THE SAUDI AIRLINE REGARDING THE SANCTIONS AGAINST IRAQ PRESSURE IS COMING FROM SOME NATIONS PARTICULARLY TURKEY AND THREE PERMANENT MEMBERS OF THE UN SECURITY COUNCIL FRANCE CHINA AND RUSSIA TO BEGIN DISCUSSING WHEN TO LIFT THE OIL EMBARGO IMPOSED AGAINST IRAQ FOLLOWING ITS 1990 INVASION OF KUWAIT MR CHRISTOPHER ADDRESSING REMARKS TO THE PEOPLE OF IRAQ SAID ASK YOUR RULERS WHY THERE ARE SHORTAGES OF FOOD AND MEDICINE YOUR SUFFERING TODAY HAS ONE CAUSE SADDAM HUSSEIN'S REFUSAL TO COMPLY WITH UN SECURITY COUNCIL RESOLUTIONS MR CHRISTOPHER SAID THE US WOULD OPPOSE LIFTING THE SANCTIONS UNTIL THE RESOLUTIONS ARE COMPLIED WITH A SENIOR US OFFICIAL SAID LATER THAT THE GULF STATES HAD AGREED TO JOIN THE US IN URGING MEMBERS OF THE SECURITY COUNCIL TO HOLD FIRM ON THE SANCTIONS WHICH COME UP NEXT MONTH FOR A REGULAR 60DAY REVIEW 9404280097 940428 HEARD ON THE STREET BEST BUY'S STOCK HAS SURGED BUT SOME WARN OF STATIC IN ELECTRONICS RETAILER'S PERFORMANCE BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS HAVE DECLARED BEST BUY THE WINNER IN A PRICE WAR THAT BROKE OUT LAST FALL AND CHRISTMAS IN THE ELECTRONICSRETAILING BUSINESS THE STOCK IS AT 69 1/4 ROUGHLY TRIPLE THE PAST YEAR'S LOW IT MAY BE A SHORTLIVED VICTORY RIVALRY IN ELECTRONICS RETAILING IS CUTTHROAT BEST BUY MAY BE BEATING ITS COMPETITORS AT THE MOMENT BUT SOME ANALYSTS WONDER HOW LONG THE GOOD TIMES CAN LAST HOPES ARE SKYHIGH INDEED WITH MANY INVESTORS AGREEING THAT BEST BUY'S APPROACH AS THE LOWPRICE LOWCOST COMPETITOR IS WINNING MARKET SHARE THIS IS THE NEXT WALMART SAYS MORRIS MARK A MONEY MANAGER WITH A BIG INVESTMENT IN BEST BUY AT TUESDAY'S CLOSE OF 69 1/4 UNCHANGED THE STOCK IS AT NEARLY 35 TIMES TRAILING EARNINGS FOR ITS FISCAL YEAR ENDED IN FEBRUARY BUT SOME WALL STREET SAVANTS POINT OUT THERE IS AT LEAST ONE BIG DIFFERENCE BETWEEN BEST BUY AND MANY OTHER HIGHGROWTH STOCKS BEST BUY'S OWN RETURN ON INVESTMENT AT THE STORE LEVEL IS LIKELY TO FALL THIS YEAR TO 18 FROM 30 GARY BALTER AN ANALYST WITH DONALDSON LUFKIN & JENRETTE TOLD CLIENTS ON MONDAY THAT COULD BE BAD FOR THE STOCK IF EARNINGS BEGIN TO SLIP AS WELL THE REASON MR BALTER THINKS THE COMPANY'S RETURN ON INVESTMENT AT ITS STORES COULD SLIP IS THAT IT IS BEING FORCED TO KEEP MORE INVENTORY ON HAND AT ITS NEW 45000SQUAREFOOT STORES IN ORDER TO KEEP UP ITS FASTPACED SALES GROWTH AN 18 RETURN IS NOT WHAT A HIGHGROWTHMULTIPLE STOCK IS MADE OF HE SAID IN HIS COMMENTS MONDAY MR BALTER STILL RATES BEST BUY STOCK VERY ATTRACTIVE NONETHELESS HE DECLINED TO ELABORATE ON HIS REMARKS TO CLIENTS WHICH WERE CARRIED ON THE FIRST CALL WIRE SERVICE FOR ANALYSTS THE COMPANY DISAGREES WITH MR BALTER'S PROJECTIONS INVENTORY WILL BE LOWER ON AVERAGE THAN MR BALTER ESTIMATES AND SALES ON AVERAGE WILL BE HIGHER THAN HE EXPECTS AS A RESULT OUR RETURNS ON 45000SQUAREFOOT STORES WILL BE HIGHER THAN HE EXPECTS SAYS ROBERT FOX SENIOR VICE PRESIDENT EVEN THOSE WHO BELIEVE THE STEAM WILL EVENTUALLY RUN OUT OF THE STOCK DON'T THINK THIS IS LIKELY TO HAPPEN IN THE NEAR FUTURE BEST BUY TURNED OUT SAMESTORE SALES GROWTH IN THE FISCAL FOURTH QUARTER OF 35 AND THE PACE ISN'T EXPECTED TO SLOW ANY TIME SOON FOR ITS FISCAL FOURTH QUARTER ENDED IN FEBRUARY THE COMPANY REPORTED EARNINGS OF 1 A SHARE WHEN ANALYSTS EXPECTED ONLY 90 TO 95 CENTS MR BALTER EXPECTS EARNINGS FOR FISCAL 1995 TO BE 350 A SHARE UP 75 FROM FISCAL 1994'S EARNINGS OF 2 A SHARE BUT THE HUGE INCREASE IN SALES IS BOUND TO SLOW SAYS SHEILA OHLSSON WITH BERGER ASSOCIATES WHICH RECENTLY UNLOADED ITS POSITION IN BEST BUY THE STREET IS EXPECTING HUGE NUMBERS SHE SAYS REFERRING TO EXPECTATIONS FOR HIGH SAMESTORE SALES GROWTH IF BEST BUY STARTS COMING UP WITH NUMBERS CONSIDERED MORE NORMAL FOR THE INDUSTRY THEY'LL GET HIT HARD SHE SAYS INVESTORS INTUITIVELY KNOW THIS ISN'T A GREAT BUSINESS SAYS DAVID BOLOTSKY OF GOLDMAN SACHS INDEED SOME INVESTORS ARE NOT ONLY AVOIDING BEST BUY BUT ALSO SHORTSELLING OR BETTING AGAINST ITS COMPETITORS WHICH INCLUDE SUN TELEVISION & APPLIANCES TANDY AND COMPUSA IF BEST BUY'S RETURN IS LOWER IT WILL DRIVE DOWN RETURNS IN THE REST OF THE INDUSTRY THE ARGUMENT GOES AS GOLDMAN'S MR BOLOTSKY EXPLAINS IT ELECTRONICS RETAILING IS BEGINNING TO LOOK A LOT LIKE THE AIRLINE BUSINESS BOTH BUSINESSES SELL BIG TICKET OR HIGHPRICED ITEMS THAT COMPEL CUSTOMERS TO FIND THE BEST PRICE AS A RESULT ELECTRONICS RETAILERS LIKE AIRLINES ARE DRIVEN INTO PERIODS OF UGLY PRICE BATTLES THAT PUT PRESSURE ON THE BUSINESSES' ALREADY LOW PROFIT MARGINS BEST BUY'S AFTERTAX PROFIT MARGIN FOR EXAMPLE IS A SLIM 14 SOMEWHAT LIKE SOUTHWEST AIRLINES BEST BUY HAS BECOME THE MUCHADMIRED LOWCOST COMPETITOR BUT SUCH FLATTERING COMPARISONS DON'T WIN OVER THE SKEPTICS AFTER ALL EVEN CELEBRATED STOCKPICKER WARREN BUFFETT WHO HAS A BIG INVESTMENT IN ONE STRUGGLING AIRLINE CONCEDED IN A REPORT TO SHAREHOLDERS NOT LONG AGO THAT HIS INVESTMENT IN USAIR GROUP HASN'T TURNED OUT AS WELL AS SOME OF HIS OTHER HOLDINGS YEAR ENDED FEB 26 1994 FOURTH QUARTER FEB 26 1994 9404280096 940428 AMERICAN ELECTRIC POWER'S STAFF COLUMBUS OHIO AMERICAN ELECTRIC POWER CO SAID IT WILL CUT 400 JOBS BY MID1995 IN A RESTRUCTURING PROJECT THAT HAS ALREADY RESULTED IN THE ELIMINATION OF 600 JOBS AEP AN ELECTRICUTILITY HOLDING COMPANY SAID THAT DURING THE LAST THREE YEARS ATTRITION AND RESTRUCTURING HAVE REDUCED COMPANYWIDE JOBS BY 2800 TO 20000 9404280095 940428 BUSINESS BRIEFS NATIONAL STARCH & CHEMICAL CO A SUBSIDIARY OF THE DUTCH COMPANY UNILEVER NV ACQUIRED KANEBO LTD'S HALF OF THE COMPANIES' JOINT VENTURE KANEBONSC LTD OSAKA JAPAN TERMS WEREN'T DISCLOSED BOEING CO SAID EL AL ISRAEL AIRLINES ORDERED A 747400 AIRCRAFT FOR DELIVERY IN MAY 1995 IT VALUED THE TRANSACTION AT ABOUT 165 MILLION INCLUDING SPARES AND TRAINING CRANE CO COMPLETED ITS 816 MILLION ALLCASH TENDER OFFER FOR MARK CONTROLS CORP A MAKER OF INDUSTRIAL VALVES IN SKOKIE ILL 9404280094 940428 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION HVIDE MARINE INC AN INITIAL OFFERING OF 35 MILLION CLASS A COMMON SHARES AT AN ESTIMATED 16 TO 18 A SHARE WITH AN OVERALLOTMENT OPTION FOR 525000 SHARES VIA CS FIRST BOSTON AND ALEX BROWN & SONS INC ISRAEL A SHELF OFFERING OF UP TO 400 MILLION OF FOURTH ECONOMIC DEVELOPMENT ISSUE DOLLAR BONDS VIA DEVELOPMENT CORP FOR ISRAEL OUTREACH HEALTH CARE INC AN INITIAL OFFERING OF 15 MILLION COMMON SHARES AT AN ANTICIPATED 8 TO 10 A SHARE WITH AN OVERALLOTMENT OPTION FOR 225000 SHARES VIA PRINCIPAL FINANCIAL SECURITIES INC AND MORGAN KEEGAN & CO 9404280093 940428 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN UNION COMMISSION RULED THAT FRANCE MUST OPEN SOME AIRLINE ROUTES TO COMPETITION PROPONENTS OF DEREGULATING THE SECTOR WHICH IS DOMINATED BY MONOPOLY FLAG CARRIERS HAILED THE DECISION THE FRENCH GOVERNMENT AND AIR FRANCE'S AIR INTER DOMESTIC UNIT VOWED A CHALLENGE THE EU ORDERED FRANCE TO LET TAT EUROPEAN AIRLINES 49OWNED BY BRITISH AIRWAYS FLY BETWEEN PARIS'S ORLY AIRPORT AND MARSEILLE TOULOUSE AND LONDON THE TWO DOMESTIC ROUTES ARE OPERATED EXCLUSIVELY AND PROFITABLY BY AIR INTER THE ORLYLONDON ROUTE ISN'T SERVED THE EU AGREED WITH TAT'S COMPLAINTS FILED LAST SEPTEMBER THAT FRANCE'S HANDLING OF THE ROUTES WAS DISCRIMINATORY THIS MARKED THE COMMISSION'S FIRST USE OF ITS POWER TO MAKE SWIFT AND EFFECTIVELY BINDING DECISIONS ON AIRLINE COMPETITION ISSUES AND SIGNALED A WILLINGNESS TO FORCE EU MEMBERS TO OPEN UP DOMESTIC MARKETS THE COMMISSION DID ALLOW AIR INTER SIX MONTHS TO PREPARE FOR RIVALRY ON THE DOMESTIC ROUTES BUT DECLARED THE ORLYLONDON ROUTE OPEN TO NEWCOMERS NOW A NEW FRENCH CABLE CHANNEL CONTACT TELEVISION IS AIMED AT PERSONAL NEEDS 24 HOURS A DAY CTV RUNS ANNOUNCEMENTS FOR PEOPLE OFFERING TO SELL ITEMS OR SEEKING ANYTHING FROM A JOB TO A MARRIAGE PARTNER ADS WHICH CAN BE TAPED IN CTV'S STUDIO OR BY HOME VIDEO MAY RUN BETWEEN 30 AND 80 SECONDS RESPONSES CAN ARRIVE ALMOST IMMEDIATELY THROUGH A CTV PHONE SYSTEM SERVING AS AN ANSWERING MACHINE CHINESE SMOKERS ACCOUNT FOR 30 OF WORLD CIGARETTE CONSUMPTION A BEIJINGFUNDED NEWS AGENCY IN HONG KONG SAID CHINA WITH 12 BILLION PEOPLE OFFICIALLY HAS 300 MILLION SMOKERS 10 OF THEM WOMEN BUT THE NUMBER OF SMOKERS IS BELIEVED TO BE VASTLY UNDERSTATED AS MANY WOMEN CONSIDER SMOKING A SYMBOL OF SEXUAL EQUALITY BUT DON'T ADMIT TO THE PRACTICE THOUGH AUTHORITIES HAVE DECLARED SMOKING A HEALTH PROBLEM SALES OF STATEPRODUCED CIGARETTES ARE A MAJOR SOURCE OF GOVERNMENT REVENUE AND SOME BRANDS ARE EVEN ADVERTISED AS GOOD FOR HEALTH THE PHILIPPINE HOUSE PASSED AND SENT TO THE SENATE A BILL TO EXPAND THE VALUEADDED TAX AND PHASE OUT OR CANCEL ABOUT 80 DIRECT OR INDIRECT LEVIES APPROVAL IS EXPECTED QUICKLY VAT REVENUE OF AN ESTIMATED 312 MILLION INITIALLY AND DOUBLE THAT SUM EVENTUALLY WOULD GO TO CUTTING BUDGET DEFICITS AMONG ITEMS EXCLUDED FROM THE TAX ARE SOME FARM PRODUCTS PETROLEUM PRODUCTS AND THEIR RAW MATERIALS BOOKS NEWSPAPERS MAGAZINES AND SHIPS THE VAT WON'T BE IMPOSED FOR AT LEAST TWO YEARS ON MANY SERVICES SUCH AS THOSE PROVIDED BY BANKS AND PHYSICIANS CHINA FORMED A POLICY TO DEVELOP ITS AUTO INDUSTRY THAT FAVORS DOMESTIC PARTS MAKERS SOURCES IN THE JAPANESE GOVERNMENT TOLD THE KYODO NEWS AGENCY THEY SAID THE CHINESE STATE PLANNERS' COMPREHENSIVE POLICY BARS FOREIGN AUTO FIRMS FROM MAKING VEHICLES WITH PARTS SHIPPED FROM THEIR PLANTS ABROAD JOINT VENTURES WOULD BE ENCOURAGED BY REQUIRING AS MUCH AS 50 DOMESTIC CONTENT DEPARTING FROM ITS PAST EMPHASIS ON VEHICLES FOR OFFICIAL USE BEIJING AIMS TO DEVELOP ECONOMICAL CARS FOR CONSUMERS AND DEMAND COULD TOP 15 MILLION SETS OF WHEELS IN THE YEAR 2000 IN A POTENTIAL SETBACK TO EFFORTS TO PRY OPEN EUROPEAN UNION PUBLICUTILITY MONOPOLIES THE EU COURT OF JUSTICE SAID MONOPOLY SELLING ARRANGEMENTS CAN BE ALLOWED UNDER A BROAD PUBLIC INTEREST JUSTIFICATION THE EU COMMISSION PLAYED DOWN THE EFFECT OF THE RULING WHICH INVOLVED RESTRICTIVE DUTCH RULES ON ENERGY IMPORTS BUT LEGAL SPECIALISTS SAID IT COULD DAMAGE THE EU'S CAMPAIGN TO BRING COMPETITION TO THE SECTOR DOMINATED BY NATIONAL MONOPOLIES WITH POSSIBLY WIDER IMPLICATIONS SUCH AS FOR TELECOMMUNICATIONS OR BROADCASTING IN A BID TO BOOST ITS ECONOMY SICHUAN PROVINCE IN SOUTHCENTRAL CHINA IS OFFERING 33 STATERUN ENTERPRISES FOR SALE TO FOREIGN INVESTORS THE CHINA NEWS SERVICE SAID THE PROVINCE'S PREVIOUS ATTEMPT TO UNLOAD SOME UNPROFITABLE FIRMS FIZZLED THOSE IN THE LATEST BATCH ARE PROFITABLE OR HAVE STRONG POTENTIAL THESE URBAN FACTORIES ARE IN SECTORS SUCH AS ELECTRONICS CHEMICAL ENGINEERING AND PHARMACEUTICALS AND EMPLOY A TOTAL OF 77000 WORKERS THEIR FIXED ASSETS WERE INITIALLY VALUED AT 414 MILLION AND THEIR NET WORTH OR ASSETS MINUS LIABILITIES IS 276 MILLION SICHUAN WILL ALLOW FOREIGN PURCHASES OF PARTS OR ALL OF THE COMPANIES OR STOCK INVESTMENTS THE GOVERNMENT HOPES FOREIGN ENTREPRENEURS' ENTRY WILL REINVIGORATE INDUSTRIES AND HELP ECONOMIC REFORMS SUCCEED THE SUBSIDIES THAT STATE FACTORIES REQUIRE ARE A HUGE DRAIN ON STATE REVENUE BUT CHINA HAS BEEN LOATH TO LET THEM FAIL FOR FEAR OF UNREST BY LAIDOFF WORKERS HO CHI MINH CITY IS TO GET A BIG EXHIBITION AND CONVENTION CENTER BY YEAR END TO BE BUILT FOR ABOUT 4 MILLION BY A SINGAPORE GOVERNMENTOWNED COMPANY AND VIETNAMESE PARTNERS AS PART OF ITS PRIVATIZATION PROGRAM PERU LATE THIS YEAR OR EARLY NEXT YEAR WILL AUCTION ITS CUZCOTOQUILLABAMBA RAILROAD LINE WHICH INCLUDES A SCENIC ANDEAN ROUTE SERVING MACHU PICCHU KNOWN AS THE LOST CITY OF THE INCAS AND ONE OF THE MOST POPULAR TOURIST ATTRACTIONS IN THE AMERICAS 9404280092 940428 GE HOLDERS BACK 2FOR1 SPLIT RALEIGH NC GENERAL ELECTRIC CO SHAREHOLDERS AT THEIR ANNUAL MEETING HERE APPROVED AN INCREASE IN AUTHORIZED COMMON STOCK PAVING THE WAY FOR A PREVIOUSLY PROPOSED 2FOR1 STOCK SPLIT THE SPLIT AND THE SHARE INCREASE TO 22 BILLION SHARES FROM 11 BILLION WILL BECOME EFFECTIVE UPON A FILING MADE TODAY GE SAID SHAREHOLDERS OF RECORD AT THE CLOSE OF BUSINESS WILL RECEIVE ONE ADDITIONAL COMMON SHARE FOR EACH SHARE HELD THE FAIRFIELD CONNBASED ELECTRICAL AND INDUSTRIAL PRODUCTS FINANCIAL SERVICES AND BROADCASTING CONCERN HAD ABOUT 9266 MILLION SHARES OUTSTANDING AS OF MARCH 31 9404280091 940428 MUTUAL FUNDS PETER LYNCH'S ADVICE IGNORE CASH FLOWS BY SARA CALIAN AND ROBERT MCGOUGH STAFF REPORTERS OF THE WALL STREET JOURNAL PETER LYNCH THE LEGENDARY FORMER MAGELLAN FUND MANAGER HAS SOME ADVICE FOR INVESTORS STOP WORRYING ABOUT MUTUALFUND CASH FLOWS A LOT OF PEOPLE WORRY THAT THE 794 BILLION IN STOCK MUTUAL FUNDS HAS THE POWER TO YANK MARKETS UP AND DOWN A FEW WEEKS AGO THEY FEARED THAT HASTY WITHDRAWALS WOULD SLAM THE STOCK MARKET THE LATEST MONTHLY DATA ARE DUE OUT ANY DAY AND THEY ARE EXPECTED TO SHOW REDUCED STOCKFUND INFLOWS AND PERHAPS BONDFUND OUTFLOWS BUT MR LYNCH WHO IS 50 YEARS OLD RETIRED FROM THE HELM OF MAGELLAN AND NOW VICE CHAIRMAN OF FIDELITY INVESTMENTS BELIEVES THE RAPT ATTENTION PAID TO FUND FLOWS IS A WASTE OF TIME FUND INVESTORS HAVE SHOWN THAT THEY AREN'T PANICKING MR LYNCH SAYS THEY DIDN'T BAIL OUT IN MASS NUMBERS THIS YEAR DESPITE A 10 DECLINE THEY DIDN'T FLEE IN 1987'S 500POINT CRASH AND THEY DIDN'T HIGHTAIL IT IN 1990 WHICH WAS THE REAL TEST MR LYNCH SAYS IN 1990 YOU HAD A FULLSCALE RECESSION THE BANKING SYSTEM WAS ON THE ROPES AND WE WERE ABOUT TO START A WAR MR LYNCH SAYS THAT WAS A TOUGH COMBINATION AND DESPITE THAT THE PUBLIC DIDN'T PANIC EARNINGS MATTER MORE IN THE LONG RUN THAN FUND CASH FLOWS MR LYNCH SAYS IF CORPORATE PROFITS DO VERY NICELY OVER THE NEXT FIVE TO 10 YEARS THE MARKET WILL GO UP HE SAYS TRUE ENOUGH THE DECLINE IN THE STOCK MARKET THIS YEAR DOES HAVE SOME FUND INVESTORS NERVOUS AND SOME HAVE SWITCHED INTO MONEYMARKET FUNDS MR LYNCH SAYS STOCK INVESTING ISN'T FOR EVERYBODY I REALLY THINK THERE ARE A LOT OF PEOPLE WHO SHOULDN'T BE IN THE STOCK MARKET THEY JUST DON'T HAVE THE STOMACH FOR STOCK DECLINES INVESTORS SHOULD BE PSYCHOLOGICALLY PREPARED TO LIVE THROUGH FREQUENT DECLINES OF 10 OR GREATER WHICH HISTORICALLY HAVE STRUCK EVERY COUPLE OF YEARS ON AVERAGE WHEN IT'S 20 BELOW ZERO IN MINNESOTA NOBODY PANICS MR LYNCH SAYS IT'S NORMAL IN THREE OR FOUR MONTHS IT'S GOING TO WARM UP HE EMPHASIZES THAT INVESTORS NEED TO STUDY MORE THERE ARE STILL A BUNCH OF PEOPLE GAMBLING SPECULATING ON STOCKS AND WORSE OPTIONS ON STOCKS OPTIONS GIVE INVESTORS THE RIGHT BUT NOT THE OBLIGATION TO BUY A STOCK AT A SET PRICE DURING A SHORT PERIOD OF TIME OFTEN INVESTORS ARE THE SAME PEOPLE WHO SPEND TWO HOURS TRYING TO GET A GOOD DEAL ON A ROUNDTRIP TICKET TO BERMUDA AND THESE PEOPLE ARE TRYING TO PUT 500000 TO WORK IN THE STOCK MARKET THE PROCEEDS FROM RETIREMENT PLANS WITHOUT DOING ANY RESEARCH AT ALL EVEN THOSE INVESTORS WHO TURN THEIR MANAGEMENT OVER TO MUTUAL FUNDS WOULD BENEFIT FROM STUDYING THE FUND'S HOLDINGS IF ONLY TO MAKE THEM MORE COMFORTABLE RIDING OUT MARKET DECLINES FIND OUT THE FIVE LARGEST POSITIONS IN THE FUND SO YOU AT LEAST KNOW WHAT YOU OWN HE SAYS DESPITE THE DOMINANCE OF THE MARKET BY BIG INSTITUTIONS MR LYNCH MAINTAINS THAT SMALL INVESTORS CAN COME OUT AHEAD WHEN THEY BUY STOCKS OF GOOD COMPANIES THAT THEY KNOW AND UNDERSTAND HE CONTINUES TO FIND STOCKS THAT HE LIKES INCLUDING BODY SHOP INTERNATIONAL A LONDON COMPANY THAT SELLS NATURAL SKIN AND HAIR PRODUCTS AND TRADES IN THE US ON THE OTC BULLETIN BOARD PRESIDENTIAL LIFE CORP AN INSURANCE FIRM SUPERCUTS INC A HAIRCUT STORE PIER 1 IMPORTS RETAILIMPORT STORES TRAVELERS CORP AN INSURANCE AND STOCKBROKERAGE CONCERN LIFE USA HOLDING INC A SMALL LIFEINSURANCE COMPANY AND JOHNSON & JOHNSON THE HEALTHCARE CONCERN JOHNSON & JOHNSON STOCK WAS AT 58 TWO YEARS AGO AND NOW IT'S AT 4025 EARNINGS ARE SHARPLY HIGHER IN THE MEANTIME AND THE COMPANY HAS AGGRESSIVELY BOUGHT ITS OWN SHARES IT SPENDS 12 BILLION ON RESEARCH AND DEVELOPMENT OR NEARLY 10 OF REVENUE MR LYNCH THINKS ITS PRODUCT AND GEOGRAPHIC DIVERSIFICATION SHOULD PROTECT IT FROM SUFFERING UNDULY FROM HEALTHCARE REFORM WHEN YOU BUY A STOCK YOU OUGHT TO BE ABLE TO WRITE A PARAGRAPH ABOUT WHY YOU BOUGHT IT MR LYNCH SAYS AS LONG AS THE REASON IS STILL TRUE YOU HOLD ONTO THE STOCK MR LYNCH QUIT MAGELLAN THE NATION'S LARGEST STOCK FUND IN 1990 TO SPEND MORE TIME WITH HIS FAMILY I HAVEN'T WORKED SATURDAYS SINCE MAY 1990 MR LYNCH SAYS ADDING THAT HE LEAVES FOR HIS OFFICE AT FIDELITY AT 8 AM NOW INSTEAD OF 6 AM WHICH MAKES A HUGE DIFFERENCE MOREOVER SINCE LAST JUNE I'VE TAKEN OFF EVERY MONDAY TO SPEND TIME WITH HIS WIFE SEE THE KIDS' LACROSSE GAMES PLAY BRIDGE AND GO SWIMMING BUT MAGELLAN WHICH MR LYNCH RAN FOR 13 YEARS IS STILL CLOSE TO HIS HEART I MISS IT EVERY DAY I REALLY LOVED IT THE PAY WAS GREAT AND I GOT FREE COFFEE 9404280090 940428 BUSINESS BRIEF FLEMING COS NET INCOME DECLINED 35 IN THE FISCAL FIRST QUARTER FLEMING COS REPORTED A 35 DROP IN FISCAL FIRSTQUARTER EARNINGS AND WARNED THAT RESULTS COULD STAY LACKLUSTER THROUGH THE END OF THE YEAR THE FOODDISTRIBUTION CONCERN IN OKLAHOMA CITY SAID ITS NET INCOME FOR THE PERIOD ENDED APRIL 16 TOTALED 244 MILLION OR 66 CENTS A SHARE DOWN FROM 374 MILLION OR 102 A SHARE A YEAR EARLIER SALES WERE FLAT AT ABOUT 4 BILLION THE EARNINGS IN LINE WITH WALL STREET'S ESTIMATES WERE HURT BY THE LOSS OF A FLORIDA CUSTOMER FLEMING SAID AS WELL AS A HIGHER EFFECTIVE TAX RATE AND A LARGER PROVISION FOR CREDIT LOSSES FLEMING HAS BEEN HURT BY THE TREND AMONG RETAILERS AND WHOLESALERS TO DEAL DIRECTLY WITH MANUFACTURERS STILL THE COMPANY SAID THE IMMEDIATE FUTURE WILL REMAIN TOUGH FLEMING SAID SECONDQUARTER RESULTS ARE EXPECTED TO BE BELOW THE PREVIOUS YEAR'S 9404280089 940428 BUSINESS BRIEF GEORGIAPACIFIC CORP PACT WITH AUSTRALIAN GROUP TO MAKE WOOD ALTERNATIVE GEORGIAPACIFIC CORP SAID IT JOINED AN AUSTRALIAN CONSORTIUM TO DEVELOP AND MARKET A BUILDING PRODUCT CALLED SCRIMBER TERMS WEREN'T DISCLOSED A FORM OF ENGINEERED WOOD MADE FROM PULPWOOD SCRIMBER HAS THE POTENTIAL TO BE AMONG THE MOST COSTEFFECTIVE ALTERNATIVES TO STANDARD LUMBER THE COMPANY SAID UNDER THE AGREEMENT THE ATLANTA FORESTPRODUCTS CONCERN WILL HAVE AN EXCLUSIVE LICENSE TO MAKE SCRIMBER IN NORTH AMERICA ALSO INVOLVED IN THE PACT ARE SOUTH AUSTRALIAN TIMBER CORP AND AUSTRALIA'S STATE GOVERNMENT INSURANCE COMMISSION BOTH IN ADELAIDE AND THE COMMONWEALTH SCIENTIFIC INDUSTRIAL RESEARCH ORGANIZATION MELBOURNE 9404280088 940428 EUROPEAN BONDS ADVANCE PROFITTAKING CUTS GAINS SPECIAL TO THE WALL STREET JOURNAL LONDON MOST MAJOR EUROPEAN GOVERNMENT BOND MARKETS ADVANCED YESTERDAY ON THE BACK OF TUESDAY'S RALLY IN US TREASURYS THEY ENDED OFF THEIR HIGHS AMID SOME PROFITTAKING FOLLOWING THE DEUTSCHE BUNDESBANK'S LATEST SECURITIES REPURCHASE OPERATION THE BUNDESBANK BOOSTED BOND MARKETS WHEN IT TRIMMED 11 BASIS POINTS OFF ITS LOWESTACCEPTED 14DAY REPO RATE TO 547 BUT SUBSEQUENT PROFITTAKING CURBED SOME OF THE GAINS UK GILTS WERE FURTHER HAMPERED BY DISAPPOINTMENT OVER THE 2 BILLION AUCTION 301 BILLION OF 6 GILTS OF 1999 CHOPPY TRADING CONDITIONS AND THE OPENING OF US FINANCIAL MARKETS AFTER A ONEDAY HOLIDAY ARE EXPECTED TO KEEP PROSPECTIVE BORROWERS ON THE SIDELINES FOR THE REST OF THE WEEK YESTERDAY US MARKETS WERE CLOSED FOR A NATIONAL DAY OF MOURNING FOR FORMER PRESIDENT RICHARD M NIXON WHO DIED FRIDAY 9404280087 940428 WHO'S NEWS MORGAN'S MARTIN RETURNS TO HIS PREVIOUS EMPLOYER NEW YORK AFTER SIX WEEKS AS MANAGING DIRECTOR AT MORGAN STANLEY GROUP INC MICHAEL E MARTIN RETURNED TO CS FIRST BOSTON INC MR MARTIN 38 YEARS OLD REJOINS THE FIRM AS MANAGING DIRECTOR RESPONSIBLE FOR MERGERS AND ACQUISITIONS FOR ALL FINANCIAL INSTITUTIONS WHEN HE LEFT HE WAS A MANAGING DIRECTOR IN CS FIRST BOSTON'S DEPOSITORY INSTITUTIONS GROUP AT MORGAN STANLEY MR MARTIN WAS MANAGING DIRECTOR IN THE COMPANY'S FINANCIAL INSTITUTIONS GROUP MR MARTIN FIRST JOINED CS HOLDING AG'S CS FIRST BOSTON IN 1987 MORGAN STANLEY DECLINED TO COMMENT 9404280086 940428 COMMODITIES NYMEX MAY LAUNCH ELECTRICITY CONTRACT BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL IN THE QUEST TO KEEP THEIR BUSINESS GROWING THE NATION'S BIG COMMODITIES EXCHANGES CONSTANTLY ARE SEARCHING FOR NEW PRODUCTS THE NEXT BIG ONE MAY BE ELECTRICITY THE NEW YORK MERCANTILE EXCHANGE HAS DONE WELL OVER THE YEARS WITH ENERGYRELATED FUTURES PRODUCTS AND NOW IT WANTS TO CAPITALIZE ON THAT SUCCESS BY OFFERING A FUTURES CONTRACT ON ELECTRICITY THAT COULD BEGIN TRADING EARLY NEXT YEAR RIGHT NOW THERE'S A HIGH DEGREE OF CONFIDENCE THAT WE'LL HAVE A CONTRACT WORKED OUT LATER THIS YEAR AND THAT IT WILL GO EARLY NEXT YEAR SAYS ROBERT LAVIN SENIOR VICE PRESIDENT OF PLANNING AND DEVELOPMENT AT THE EXCHANGE CLEARLY ELECTRICITY IS A MAJOR ENERGY PRODUCT ON A PAR WITH THE NATURAL GAS CRUDE OIL AND OTHER ENERGY PRODUCTS WE TRADE IN TERMS OF IMPORTANCE NYMEX'S INTEREST IN LAUNCHING ELECTRICITY FUTURES IS PART OF A PLAN TO BROADEN THE RANGE OF COMMODITY FUTURES IT LISTS STILL ON THE DRAWING BOARD ARE ALUMINIUM ZINC AND NICKEL CONTRACTS WHICH WOULD GIVE NORTH AMERICAN INVESTORS A BETTER OPPORTUNITY TO PLAY INDUSTRIAL METALS FUTURES MOST OF WHICH NOW CHANGE HANDS ONLY ON THE LONDON METAL EXCHANGE AMONG THE THINGS THAT COULD BE COMMODITIZED ONE DAY ARE AIR AND WATER AND SUCH INTANGIBLES AS THE CONSUMER PRICE INDEX BUT DEVELOPING AND LISTING NEW FUTURES CONTRACTS IS A LENGTHY DIFFICULT AND OFTEN COSTLY BUSINESS WITH NO GUARANTEE OF SUCCESS FOR EXAMPLE DAIRYPRODUCT FUTURES WHICH MADE THEIR DEBUT ON NEW YORK'S COFFEE SUGAR AND COCOA EXCHANGE LAST YEAR REMAIN THINLY TRADED AND APPEAR UNLIKELY TO EVER DRAW MUCH ACCEPTANCE AMONG EITHER SPECULATORS OR INDUSTRIAL USERS AND PRODUCERS THERE AREN'T A LOT OF HOMERUN PRODUCTS LIKE CRUDE OR NATURALGAS FUTURES WAITING TO BE DISCOVERED ANYMORE SO YOU'RE MORE LIKELY TO SEE NICHE PRODUCTS BECOMING SUCCESSFUL SAID HUNT TAYLOR MANAGING DIRECTOR OF REYNWOOD TRADING CORP IN SHORT HILLS NJ MR TAYLOR ADDS THAT FUTURES EXCHANGES HAVE TO INVEST TIME AND MONEY IN EDUCATING THE INDUSTRY ON HOW TO USE NEW DERIVATIVES IT CAN TAKE AS LONG AS TWO YEARS TO ESTABLISH THE TRADING HISTORY AND LIQUIDITY DEMANDED BY MOST COMMODITY FUNDS AND SPECULATIVE PLAYERS BEFORE THEY CONSIDER PLAYING NEW PRODUCTS HE SAID THE KEY TO SUCCESS OF A NEW CONTRACT IS COMMERCIAL PARTICIPATION AND THAT'S WHY ELECTRICITY STANDS A GOOD CHANCE OF MAKING IT SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST AT MERRILL LYNCH & CO IN NEW YORK WE'RE STARTING TO GET INQUIRIES ABOUT ELECTRICITY CONTRACTS ALREADY FROM THE INDUSTRY UTILITIES THAT GENERATE AND DISTRIBUTE ELECTRICITY TO CUSTOMERS CLEARLY HAVE AN INTEREST IN HEDGING THE PRICE AND AVAILABILITY OF ELECTRICITY SO TOO DO SUCH INDUSTRIAL USERS AS STEEL MANUFACTURERS THAT USE HUGE AMOUNTS OF POWER WE COULD SEE USING THESE AS A WAY TO HEDGE AGAINST A SCARCITY OF POWER DEPENDING ON THE WAY THE CONTRACT IS STRUCTURED SAID DWAIN BOETTCHER POWERCONTRACT SUPERVISOR AT SAN DIEGO GAS & ELECTRIC DIFFICULTY IN DESIGNING THE CONTRACT HAS HELPED TO DELAY THE LAUNCH OF ELECTRICITY FUTURES DEREGULATION OF THE GENERATING INDUSTRY IS MORE ADVANCED IN SOME STATES THAN IN OTHERS THE NATURE OF THE COMMODITY AND THE LOCAL OR REGIONAL NATURE OF THE SPOTMARKET SALES OF ELECTRICITY THAT NOW TAKE PLACE MAKE IT TRICKY TO ESTABLISH A NATIONAL DELIVERY POINT AS A RESULT SOME WOULDBE USERS ARE PRESSING FOR A CASH SETTLEMENT UTILITIES ALSO ARE BICKERING OVER WHETHER THE CONTRACT SHOULD BE FOR FIRM DELIVERY OR INTERRUPTIBLE SUPPLIES OF ELECTRICITY WITH SAN DIEGO GAS & ELECTRIC FOR EXAMPLE INSISTING THAT THE CONTRACT WOULD BE OF LITTLE VALUE AS A HEDGING DEVICE IF IT IS FOR POWER THAT CAN BE INTERRUPTED BUT RICHARD L SANDOR CHAIRMAN OF CENTRE FINANCIAL PRODUCTS IN NEW YORK BELIEVES THAT THE WAY THE POWER INDUSTRY IS EVOLVING FAVORS THE CONTRACT'S ACCEPTANCE THE GROWTH OF REGIONAL POWER GRIDS AND THE GROWTH IN INDEPENDENT POWER PRODUCERS AMONG OTHER FACTORS ALL SUGGEST THAT ELECTRICITY WILL BE DISTRIBUTED ON A MORETHANLOCAL NATURE HE SAID THAT HE ADDS WILL HELP TRANSFORM AN ELECTRIC UTILITY INTO AN ASSET LIABILITY MANAGER AKIN TO A BANK HEDGING THE COST OF ITS INPUTS INCLUDING THE CRUDE OIL AND NATURAL GAS USED TO GENERATE ELECTRICITY AND NOW THE OUTPUT THE ELECTRICITY ITSELF SOME FUND MANAGERS SAY THEIR ATTENTION HAS ALREADY BEEN SPARKED BY THE CONCEPT OF ELECTRICITY FUTURES WILLIAM CLARKE EXECUTIVE VICE PRESIDENT OF CAMPBELL & CO A FUND MANAGER BASED IN TOWNSEND MD SAYS THAT HIS FUNDS' PORTFOLIOS CURRENTLY ARE HEAVILY WEIGHTED TOWARD FINANCIAL FUTURES ELECTRICITY CONTRACTS WOULD BE A VERY INTERESTING WAY TO DIVERSIFY OUR HOLDINGS HE SAID I'D LOVE TO FIND A NEW COMMODITY FUTURES CONTRACT WITH GOOD VOLUME LIKE ELECTRICITY OR BASE METALS SO MY PORTFOLIO DOESN'T HICCUP EVERY TIME THERE'S BAD NEWS FROM JAPAN MR CLARKE SAYS HE IS LESS ENAMORED OF OTHER TYPES OF NEW FUTURES CONTRACTS BEING PROPOSED SUCH AS CATASTROPHIC INSURANCE FUTURES THOSE COULD END UP BEING PRETTY ILLIQUID UNLESS AND UNTIL THERE'S ANOTHER HURRICANE HEADING FOR THE FLORIDA COAST HE ADDED BUT EXCHANGES SAY THE BULK OF NEW COMMODITIES CONTRACTS ARE LIKELY TO BE DESIGNED AROUND PRODUCTS OF WHICH INVESTORS HAVEN'T EVEN DREAMED DESIGNING ELECTRICITY AND OTHER ENERGY FUTURES WERE LIKE THE CAVEMAN DISCOVERING FIRE SAID NYMEX'S MR LEVIN NOW IT'S TIME TO GO AND DISCOVER THE WHEEL OTHERWISE ALL WE DO IS HEAP REFINEMENT ON TOP OF REFINEMENT ON EXISTING PRODUCTS ALL THAT DOES IS PAINT A MUSTACHE ON THE MONA LISA NYMEX HAS MULLED SUCH VENTURES AS COMPUTERCHIP CONTRACTS OR FUTURES ON HIGHYIELD BONDS AND IS SEEKING WAYS TO DESIGN CONTRACTS ON INTANGIBLES SUCH AS THE CONSUMER PRICE INDEX WHICH ISN'T A COMMODITY AND HAS NO SPOT MARKET AT THE CHICAGO BOARD OF TRADE AN EARLIER PROPOSAL TO DEVELOP AN ELECTRICITY FUTURES CONTRACT HAS BEEN PUT ON THE BACK BURNER TO EMPHASIZE THE EXCHANGE'S PLAN TO TRADE CLEANAIR FUTURES MR SANDOR WHO IS WORKING ON THE CLEANAIR CONTRACT AND WHO HAS DESIGNED NUMEROUS FINANCIALFUTURES PRODUCTS FOR THE CBOT AND OTHER EXCHANGES WORLDWIDE SAYS HE EXPECTS TO SEE INCREASED COMMODITIZATION OF PREVIOUSLY FREE GOODS SUCH AS WATER AND AIR THERE'S NO LONGER AN AMPLE SUPPLY OF THESE GOODS HE NOTES SO WE COULD SEE THE SALE OF WATER RIGHTS IN CONNECTION TO ATTEMPTS TO CLEAN UP THE BALTIC SEA OR FISHING PERMITS IN OVERFISHED AREAS I EXPECT A LOT OF NEW FUTURES CONTRACTS TO FOCUS ON MARKETBASED SOLUTIONS TO ENVIRONMENTAL PROBLEMS WHILE MR SANDOR WARNS THAT NINE OF EVERY 10 NEW FUTURES CONTRACTS PROPOSED OR LISTED WIND UP FAILING HE SAYS THAT SHOULDN'T HAMPER CREATIVITY AT THE FUTURES EXCHANGES EVERY NEW FUTURES CONTRACT HELPS EDUCATE SOMEONE SOMEWHERE ABOUT USING HEDGES AND HELPS TEACH PEOPLE HOW TO DO BETTER THE NEXT TIME THEY DESIGN A CONTRACT HE SAID THERE'S NOTHING WRONG WITH FAILING 9404280085 940428 WHAT'S NEWS BUSINESS AND FINANCE IBM HAS YET TO FIRE 28000 PEOPLE OR 80 OF THE GOAL IT SET LAST JULY THOSE NUMBERS INDUSTRY EXECUTIVES SAID INDICATE THAT IBM'S TOP PERSONNEL OFFICIAL WHO ABRUPTLY RESIGNED TUESDAY WAS UNDER PRESSURE BECAUSE HE WASN'T MAKING CUTS FAST ENOUGH THE PENTAGON PLANS TO SPEND UP TO 500 MILLION OVER A DECADE TO HELP THE US COUNTER JAPAN'S DOMINATION OF THE 5 BILLION FLATSCREEN MARKET FLAGSTAR PLANS TO SELL MOST OF ITS CANTEEN FOOD AND VENDING OPERATIONS TO COMPASS FOR 450 MILLION FLAGSTAR THE OWNER OF DENNY'S AND OTHER RESTAURANT CHAINS SAID THE SALE SHOULD HELP IT POST AN OPERATING PROFIT IN 1994 MINNESOTA MINING'S FIRSTQUARTER EARNINGS SOMEWHAT EXCEEDED ANALYSTS' EXPECTATIONS A HINT THAT THE US INDUSTRIAL ECONOMY IS MORE ROBUST THAN WALL STREET HAD THOUGHT SALES ROSE 33 TO 363 BILLION SEVERAL STATES ARE CONSIDERING SALES AND CORPORATE TAX REDUCTIONS AND 15 OF THEM ARE PROPOSING PERSONAL INCOME TAX CUTS ACCORDING TO A SURVEY AGCO AGREED TO ACQUIRE MASSEY FERGUSON GROUP A TRACTOR MANUFACTURING AND DISTRIBUTION CONCERN FROM VARITY FOR ABOUT 328 MILLION HITACHI SAID IT WILL BEGIN USING IN ITS COMPUTERS SEVERAL MICROPROCESSORS FROM IBM GIVING A BOOST TO BIG BLUE AND PAVING THE WAY FOR CLOSER COOPERATION BETWEEN THE TWO COMPETITORS PROCTER & GAMBLE REPORTED A 4 DROP IN PROFIT FOR ITS FISCAL THIRD QUARTER REFLECTING AN EXPECTED 157 MILLION PRETAX CHARGE TO CLOSE OUT RISKY INTERESTRATE SWAP CONTRACTS BANKS MAY HAVE TO SHARPLY REDUCE THEIR PROFITS AND CAPITAL BECAUSE OF CONFLICTING ACCOUNTING RULES CONCERNING HOW THEY SHOULD VALUE COLLATERALIZED MORTGAGE OBLIGATIONS OR CMOS ACCOUNTANTS AND BANKERS SAID THE US IS STEPPING UP ITS PROBE INTO THE COLLAPSE OF A THRIFT PARTLY OWNED BY TEXAS FINANCIER CHARLES HURWITZ PEOPLE CLOSE TO THE CASE SAID XEROX'S PROFIT FELL 32 IN THE FIRST QUARTER BUT ITS DOCUMENT PROCESSING UNIT HAD SIGNIFICANT GAINS A SIGN THAT AGGRESSIVE COSTCUTTING IS WORKING ITS REVENUE ROSE 1 TO 395 BILLION WALL STREET IS BUSY RECALCULATING THE VALUE OF THE TOBACCO BUSINESSES OF PHILIP MORRIS AND RJR IN THE WAKE OF BA T INDUSTRIES' PLAN TO PAY 1 BILLION FOR AMERICAN TOBACCO CONSIDERED ONE OF THE INDUSTRY'S WEAKEST COMPANIES VOLKSWAGEN SHARES SLUMPED AFTER GERMAN PROSECUTORS INVESTIGATING INDUSTRIAL ESPIONAGE CHARGES AGAINST VW PRODUCTION CHIEF J IGNACIO LOPEZ DE ARRIORTUA REPORTED THEY FOUND GM INFORMATION AT VW'S HEADQUARTERS DISNEY'S NEW STRATEGY OF RELEASING AS MANY AS 60 FILMS A YEAR HASN'T PAID OFF BIG YET AT THE BOX OFFICE AND NOW MAY BE RESULTING IN INTERNAL STRAIN BELL ATLANTIC AND ORACLE PLAN TO DEVELOP INTERACTIVE MULTIMEDIA SOFTWARE AND SERVICES FOR LARGE BUSINESSES EXPANDING A PACT TARGETING CONSUMERS THE PLAN WILL BE ANNOUNCED TODAY AT&T'S PROPOSAL FOR THE MULTIBILLIONDOLLAR MODERNIZATION OF SAUDI ARABIA'S TELEPHONE SYSTEM GOT A BOOST AFTER CLINTON URGED SAUDI ARABIA'S KING FAHD TO CONSIDER AT&T'S BID THE PROJECT COULD COST UP TO 5 BILLION TURNER BROADCASTING'S INTEREST IN ACQUIRING HOME SHOPPING NETWORK HAS COOLED OFF FOR NOW ACCORDING TO PEOPLE FAMILIAR WITH THEIR TALKS A DEAL WHICH WOULD HAVE BEEN STRUCTURED AS A STOCK SWAP DOESN'T MAKE FINANCIAL SENSE NOW OBSERVERS SAID ENTERPRISE OIL IS CONSIDERING A BID FOR RIVAL LASMO BUT LASMO SAID A BID FROM ITS COMPETITOR ONE OF THE UK'S BIGGEST NORTH SEA ENERGYPRODUCTION COMPANIES WOULD BE UNWELCOME MARTIN MARIETTA SAID IT IS SCOUTING ACQUISITION TARGETS WITH SALES OF 1 BILLION OR MORE AND MAY CONSIDER NONDEFENSE FIRMS THE ANNOUNCEMENT COMES AFTER ITS LOSING BID FOR GRUMMAN A MUNICIPALBOND DEALER CHALLENGING THE SEC'S NEW PAY TO PLAY RULE ARGUED THAT THE AGENCY CAN'T CITE A SINGLE INSTANCE OF THE PROBLEM THAT THE RULE IS SUPPOSED TO PREVENT HE ASKED AN APPEALS COURT TO REVIEW THE RULE STOCKS MARKET CLOSED BONDS MARKET CLOSED COMMODITIES MARKET CLOSED DOLLAR 10235 YEN OFF 045 16723 MARKS OFF 00042 9404280084 940428 WHO'S NEWS MIDWEST RESOURCES INC MIDWEST RESOURCES INC DES MOINES IOWA BETTY TURNER ASHER PRESIDENT OF THE UNIVERSITY OF SOUTH DAKOTA WAS ELECTED TO THE BOARD MS ASHER 49 YEARS OLD SUCCEEDS GORDON C HURLBERT 70 WHO RETIRES AFTER REACHING THE MANDATORY RETIREMENT AGE 9404280082 940428 PHARMOS BAUSCH & LOMB PACT NEW YORK PHARMOS CORP SAID IT SIGNED A LETTER OF INTENT WITH BAUSCH & LOMB INC'S PHARMACEUTICAL UNIT FOR THE MARKETING PRODUCTION AND FUTURE DEVELOPMENT OF LENOXIN A CORTICOSTEROID DEVELOPED TO TREAT OPHTHALMIC INFLAMMATION AND ALLERGIES UNDER THE AGREEMENT PHARMOS WOULD CONTINUE TO DEVELOP LENOXIN NOW IN A PHASE III CLINICAL TRIAL PROGRAM AND FILE A NEW DRUG APPLICATION WITH THE FOOD AND DRUG ADMINISTRATION LATER THIS YEAR BAUSCH & LOMB PHARMACEUTICALS WOULD DISTRIBUTE MARKET AND PRODUCE LENOXIN 9404280081 940428 BUSINESS BRIEF FISHER SCIENTIFIC INTERNATIONAL INC COMPANY EXPECTS TO REPORT 10 PROFIT RISE FOR 1ST PERIOD FISHER SCIENTIFIC INTERNATIONAL INC EXPECTS TO REPORT THAT FIRSTQUARTER NET INCOME ROSE 10 ON A 53 SALES INCREASE PAUL MONTRONE PRESIDENT AND CHIEF EXECUTIVE SAID FISHER EXPECTS TO REPORT RECORD NET OF 66 MILLION OR 41 CENTS A SHARE COMPARED WITH 6 MILLION OR 37 CENTS A SHARE A YEAR EARLIER SALES ROSE TO A RECORD 2404 MILLION FROM 2282 MILLION THE COMPANY SAID FISHER BASED IN HAMPTON NH SELLS LABORATORY EQUIPMENT TO 100000 CUSTOMERS AROUND THE WORLD MR MONTRONE SAID THE FINANCIAL RESULTS ARE CONSISTENT WITH ANALYSTS' ESTIMATES 9404280080 940428 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG THE 1994 BASEBALL SEASON HAS BEEN UNDER WAY FOR NEARLY A MONTH NOW AND IT'S A BEAUTIFUL THING TO BEHOLD AS ALWAYS IN APRIL THE HITTERS ARE STARTING FASTER THAN THE PITCHERS BUT THIS YEAR A VERITABLE HOMERUN EPIDEMIC SEEMS TO BE UNDER WAY THERE ARE HANDSOME NEW BALLPARKS IN CLEVELAND AND ARLINGTON TEXAS AND EVEN THE RED SOX LOOK GOOD SO FAR THOUGH BITTER EXPERIENCE SUGGESTS IT MAY BE A DIFFERENT STORY BY LABOR DAY FOR SERIOUS BASEBALL FANS WITH COMPUTERS THIS IS ALSO THE YEAR A NEW TYPE OF BASEBALL SOFTWARE IS PROLIFERATING BASEBALL AND COMPUTERS ARE A NATURAL MATCH NO OTHER SPORT IS AS FREQUENTLY ANALYZED IN SO MANY DIFFERENT MATHEMATICAL PERMUTATIONS THAT HAVE SUCH LONG HISTORIES THE RECENT SPREAD OF ROTISSERIE OR FANTASY BASEBALL CONTESTS HAS RAISED INTEREST IN ALL THESE FIGURES AND WHERE THERE ARE NUMBERS AND STATISTICS SOFTWARE IS SURE TO FOLLOW SO THE LATEST BASEBALL PROGRAMS AREN'T SIMULATED GAMES YOU PLAY ON SCREEN THEY ARE HIGHTECH REFERENCE WORKS THAT LET USERS PORE THROUGH MOUNDS OF REAL BASEBALL STATISTICS REVIEW PLAYERS' CAREERS AND FAMOUS MOMENTS AND USE A MODEM TO GET DAILY UPDATES OF SCORES AND STATS ONE OF THEM IS EVEN DESIGNED TO BE USED AT THE BALLPARK I'VE BEEN LOOKING AT FOUR OF THESE BASEBALL REFERENCE PROGRAMS WHICH ARE EITHER ALREADY AVAILABLE OR WILL BE SOON EACH IS QUITE DISTINCT AND REQUIRES A DIFFERENT COMPUTER CONFIGURATION BUT ANY OF THEM WOULD MAKE A DEDICATED BASEBALL FAN HAPPY FOR BASIC COMPUTERS THAT RUN MICROSOFT WINDOWS THERE'S THE MAJOR LEAGUE BASEBALL SPORTSGUIDE FROM MOMENTUM DEVELOPMENT ASHLAND ORE THE 34 PROGRAM WHICH SHOULD REACH STORES SOON IS A SORT OF GRAB BAG OF BASEBALLORIENTED DATA AND UTILITIES NONE OF THESE MODULES IS TERRIFIC AND THE OVERALL PROGRAM HAS A SORT OF RAGGED FEEL THAT LEFT ME UNSURE HOW TO GET FROM ONE PART TO THE OTHER AT TIMES BUT THERE'S A LOT GOING ON IN THERE THE SOFTWARE INCLUDES STATISTICS AND STANDINGS ON ALL CURRENT PLAYERS AND TEAMS SCHEDULES AND CALENDARS OF GAMES A DATEBOOK AND ADDRESS BOOK TICKET INFORMATION WITH STADIUM MAPS AND SIMPLE TRIVIA GAMES FOR EVERY TEAM IN ADDITION THERE ARE SCREEN SAVERS AND WALLPAPER DESIGNS TO DECORATE YOUR SCREEN BASED ON EACH TEAM'S LOGO FOR 30 A SEASON YOU CAN ALSO USE A MODEM TO RETRIEVE SCORES AND PLAYER STATS AND THE SOFTWARE WILL AUTOMATICALLY UPDATE ITS DATA IF YOU'RE ONE OF THE FEW TO OWN AN APPLE NEWTON PERSONAL DIGITAL ASSISTANT YOU CAN INDULGE A LOVE OF BASEBALL WITH A 100 PROGRAM CALLED FINGERTIP FOR STATS THIS SOFTWARE INCLUDES STATS ON BOTH CURRENT PLAYERS AND TEAMS AND AN ABRIDGED VERSION OF THE BILL JAMES BASEBALL ENCYCLOPEDIA CONTAINING DATA ON HALL OF FAME PLAYERS AND CAREER LEADERS IN VARIOUS CATEGORIES THERE'S A TRIVIA GAME AND A FEATURE THAT LETS USERS DOWNLOAD FRESH STATISTICS AND NEWS FOR ABOUT 25 CENTS A MINUTE OR AN AVERAGE OF 1 A DAY BECAUSE FINGERTIP FOR STATS RUNS ON THE POCKETSIZED NEWTON IT EVEN INCLUDES AN ELABORATE ELECTRONIC GAMESCORING MODULE YOU CAN USE IN YOUR SEAT AT THE BALLPARK IF YOU CAN MAKE OUT THE NEWTON'S DIM SCREEN AND KEEP MUSTARD FROM DRIPPING ON IT BY FAR THE MOST IMPRESSIVE OF THE NEW BASEBALL PROGRAMS IS COMPLETE BASEBALL FROM SOFTWARE GIANT MICROSOFT IT'S DESIGNED FOR WINDOWS USERS WHOSE COMPUTERS HAVE CDROM DRIVES AND IT'S EXPECTED TO SELL FOR AROUND 60 WHEN IT REACHES STORE SHELVES IN LATE JUNE THE PRERELEASE VERSION I TRIED OUT IS A GORGEOUS PRODUCT THAT ENCOMPASSES THE ENTIRE HISTORY AND CURRENT STATUS OF THE GAME AND IS RICHLY ILLUSTRATED WITH COLOR PHOTOS DRAWINGS AND AUDIO AND VIDEO CLIPS COMPLETE BASEBALL INCLUDES THE ENTIRE TEXT OF THE EXCELLENT REFERENCE WORK TOTAL BASEBALL INCLUDING NOT ONLY STATISTICS ON EVERY PLAYER AND TEAM IN BASEBALL HISTORY BUT ALSO WELLDONE ARTICLES TRACING PLAYERS' LIVES THE COURSE OF EACH SEASON AND EVERY ASPECT OF THE HISTORY OF THE GAME THERE'S EVEN AN ARTICLE ON WOMEN IN BASEBALL EXTRA MATERIAL FROM OTHER SOURCES SUCH AS NEW YORK TIMES ARTICLES ABOUT THE BOOK'S 100 GREATEST PLAYERS COVERS MOMENTS LIKE HENRY AARON'S RECORDBREAKING 1975 HOME RUN AND TED WILLIAMS' 406 SEASON IN 1941 THE TRIVIA GAME IS CHALLENGING AND INTERESTING FOR 125 A DAY MICROSOFT WILL OFFER VIA MODEM AN ELECTRONIC BASEBALL NEWSPAPER CONTAINING FRESH SCORES STATS NEWS AND EVEN A DAILY PHOTO BECAUSE COMPLETE BASEBALL IS AN UNRELEASED PRODUCT IT HAS SOME BUGS AND FLAWS THAT I CAN'T CERTIFY WILL BE GONE WHEN MICROSOFT RELEASES IT BUT THE COMPANY PROMISES TO WRING THEM OUT THERE ARE ALSO A FEW DESIGN LIMITATIONS IN THE PROGRAM THAT WON'T BE FIXED THIS YEAR THE DAILY UPDATES ARE KEPT SEPARATE FROM THE UNDERLYING DATA SO CAREER STATISTICS DON'T GET UPDATED PRINTING IS A CLUMSY PROCESS IN SOME PARTS OF THE PROGRAM AND YOU CAN'T VIEW ON A SINGLE SCREEN THE STATISTICS FOR MULTIPLE YEARS IN A PLAYER'S CAREER IF YOU CAN'T WAIT FOR MICROSOFT OR DON'T USE WINDOWS THE TEXT OF THE TOTAL BASEBALL BOOK IS ALSO AVAILABLE ON A CDROM FOR IBMCOMPATIBLE AND MACINTOSH COMPUTERS THAT COMES PACKAGED WITH THE 50 BOOK ITSELF BUT THIS IS A BAREBONES PRODUCT WITH LESS MATERIAL FEWER FEATURES AND NONE OF THE BEAUTY OF MICROSOFT'S OFFERING AND IT ONLY APPEARS TO GO THROUGH THE 1992 SEASON BASEBALL HAS HAD TROUBLE LATELY DEVELOPING NEW YOUNG FANS I SUSPECT THESE NEW SOFTWARE PROGRAMS WILL HELP TO SNAG SOME OF THOSE HIGHTECH KIDS WHO SPEND MORE TIME AT THE COMPUTER THAN THE BALLPARK 9404280079 940428 MARKETING & MEDIA VIACOM INC PLANS TO SELL SOME PARTS OF PUBLISHING UNIT BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK VIACOM INC'S PARAMOUNT PUBLISHING UNIT SAID IT INTENDS TO SELL SEVERAL UNITS IN ITS SOFTWARE AND INFORMATION DIVISION ALTHOUGH THE MOVE WILL GENERATE CASH THAT VIACOM MAY USE TO TRIM DEBT FROM ITS 96 BILLION PURCHASE OF PARAMOUNT COMMUNICATIONS INC VIACOM OFFICIALS WERE QUICK TO EMPHASIZE THAT THE DECISION TO SHED THE UNITS HAD NOTHING TO DO WITH ANY NEED FOR CASH THEY SAID THAT PARAMOUNT PUBLISHING'S MANAGERS HAD LONG PLANNED TO SELL THE UNITS AMID A GROWING CONSENSUS AMONG INVESTORS THAT VIACOM'S PROPOSED ACQUISITION OF BLOCKBUSTER ENTERTAINMENT CORP HAS COLLAPSED VIACOM APPEARS ANXIOUS TO DISPEL ANY SPECULATION THAT IT MAY NOW BE MOVING QUICKLY TO RAISE CASH THROUGH ASSET SALES FOR EXAMPLE VIACOM CHAIRMAN SUMNER REDSTONE VOWED TO HOLD ONTO ALL ASSETS THAT THE COMPANY DEEMS STRATEGIC VIACOM HAD INTENDED TO USE BLOCKBUSTER'S CASH FLOW TO HELP EASE VIACOM'S TAKEOVER DEBT LOAD BUT THE PROSPECTS FOR THE BLOCKBUSTER DEAL IN WHICH VIACOM WOULD BUY THE VIDEORENTAL CONCERN FOR STOCK HAVE BECOME CLOUDED AS THE VALUE OF VIACOM'S SHARES HAVE PLUNGED IN ANNOUNCING THE PLANNED UNIT SALES AND A REALIGNMENT OF ANOTHER PUBLISHING GROUP FRANK J BIONDI JR VIACOM PRESIDENT AND CHIEF EXECUTIVE EXPRESSED VIACOM'S COMMITMENT TO THE PUBLISHING BUSINESS PARAMOUNT PUBLISHING IS A SIGNIFICANT STRATEGIC ASSET FOR VIACOM HE SAID ADDING THAT VIACOM IS COMMITTED TO LONGTERM EXPANSION IN OUR AREAS OF STRENGTH AND LEADERSHIP IN PUBLISHING THE UNITS PUT ON THE AUCTION BLOCK INCLUDE PRENTICE HALL LEGAL AND FINANCIAL SERVICES PRENTICE HALL PROFESSIONAL SOFTWARE PRENTICE HALL LAW AND BUSINESS AND TWO OTHER SMALL UNITS ACCORDING TO PEOPLE FAMILIAR WITH THE COMPANIES THE OPERATIONS COULD COMMAND A SALES PRICE OF 100 MILLION TO 200 MILLION RICHARD SNYDER PARAMOUNT PUBLISHING'S CHAIRMAN SAID THE UNITS DON'T FIT WITHIN THE COMPANY'S STRATEGY OF FOCUSING ON CONSUMER EDUCATION BUSINESS AND REFERENCE AND INTERNATIONAL PUBLISHING THE REALIGNMENT ANNOUNCED YESTERDAY INVOLVED SPLITTING THE BUSINESS TECHNICAL AND PROFESSIONAL GROUP INTO TWO UNITS ONE UNIT MACMILLAN PUBLISHING WILL INCLUDE PARAMOUNT PUBLISHING'S LIBRARY REFERENCE OPERATION MACMILLAN COMPUTER PUBLISHING AND MACMILLAN GENERAL REFERENCE THE SECOND UNIT WILL BRING TOGETHER THE GROUP'S BUSINESS TRAINING AND HEALTHCARE REFERENCE OPERATIONS 9404280078 940428 REVIEW & OUTLOOK EDITORIAL ASIDES HAIR HERESY NOTWITHSTANDING HILLARY CLINTON'S SUDDEN APOLOGIA CONFERENCE LAST FRIDAY WE HOPE TO HAVE MORE TO SAY ABOUT HER TRADING SET THAT ASIDE A MOMENT THOUGH WE NOTICED RIGHT OFF FRIDAY THAT MRS CLINTON HAD ABANDONED HER NEW UPSWEPT HAIRCUT REVERTING TO THE MORE FAMILIAR MORE POLITICALLY CORRECT POWER CUT THIS CLIMB DOWN AS IT WERE CAME AFTER A CHORUS OF YELPS WENT UP AMONG HAIR STYLISTS TO THE GLITTERATI WORD WAS PUT OUT AMONG THE MEDIA THAT HILLARY CLINTON'S NEW DO WAS A THROWBACK TO THE 1950S SHE NEEDS A VERY BUSINESS CUT HUFFED A PROMINENT SALON KEEPER EVIDENTLY THE FIRST LADY AND HER HAIRDRESSER MELLOUL WHO CHARGES AN UNFASHIONABLE 17 A HEAD VIOLATED THE CANON WHICH HOLDS THAT A WOMAN WHO WIELDS AUTHORITY CAN'T BE ALLOWED TO GO ABOUT IN A HAIRDO SWEPT UP AND AROUND HER FACE TOO BAD WE THOUGHT THE FIRST LADY HAD GOT HERSELF A HAIRDO IN WHICH SHE LOOKED QUITE SPECTACULAR 9404280073 940428 PEPPERAND SALT CREDENTIALS OF THE PRESIDENTIAL POLS SIMPLY WENT FOR WALKS WITH TRUMAN MANY PEOPLE KNOW HOW TO SAY GOODBYE BUT NOT WHEN 9404280072 940428 WHAT'S NEWS WORLDWIDE MILLIONS VOTED IN SOUTH AFRICA AND POLICE ARRESTED 31 WHITE EXTREMISTS THE ELECTION CAME UNDER THE THREAT OF COLLAPSE FROM MILELONG LINES OF VOTERS AND A BALLOT SHORTAGE RESPONDING TO FLOODS OF VOTERS THE GOVERNMENT BEGAN PRINTING MILLIONS OF NEW BALLOTS SAYING IT WOULD HAVE FIVE MILLION MORE READY BY THIS MORNING THE ARMY WAS PREPARING TO HELP PRINT AND TRANSPORT BALLOTS WHICH NEVER ARRIVED AT SOME STATIONS POLICE DETAINED 31 SUSPECTS IN BOMBING ATTACKS THAT KILLED 21 PEOPLE A BOMB EXPLODED YESTERDAY AT JOHANNESBURG'S AIRPORT INJURING 18 OFFICIALS EXTENDED VOTING IN NATAL PROVINCE THROUGH TOMORROW INKATHA FREEDOM PARTY LEADER BUTHELEZI HAD DEMANDED AN EXTENSION IN THE THREEDAY BALLOTING CITING WIDESPREAD CONFUSION THE CHICAGO MERCANTILE EXCHANGE HAS HUNDREDS OF PAGES OF DOCUMENTS THAT COULD SHED NEW LIGHT ON HOW HILLARY RODHAM CLINTON REAPED A 99000 PROFIT ON A 1000 COMMODITY INVESTMENT BUT EXCHANGE OFFICIALS SAY THEY WON'T RELEASE THE RECORDS UNLESS SUBPOENAED THE SECURITY COUNCIL APPROVED DEPLOYMENT OF 6550 MORE PEACEKEEPING TROOPS TO PROTECT UN SAFE AREAS IN BOSNIA THE UN PROTECTION FORCE CURRENTLY HAS 17000 TROOPS THERE MEANWHILE ISLAMIC FOREIGN MINISTERS SAID THEY WOULD URGE THE SECURITY COUNCIL TO LIFT A 1991 ARMS EMBARGO AGAINST THE MUSLIMLED BOSNIAN GOVERNMENT LOUISIANA SEN BREAUX REACTED POSITIVELY TO PROPOSED CONCESSIONS FOR SMALL BUSINESSES WITH REGARD TO HEALTHCARE LEGISLATION THE DEMOCRATIC MODERATE AND WOULDBE BROKER ON HEALTH REFORM SAID SUGGESTIONS MADE BY A HOUSE PANEL REPRESENT AN OPENING TO RESOLVING THE ISSUE OF HOW TO SPREAD THE COST OF HEALTH CARE SCIENTISTS AT TWO RIVAL COMPANIES SAID THEY HAD GENETICALLY ENGINEERED MICE TO PRODUCE HUMAN VERSIONS OF MONOCLONAL ANTIBODIES WHICH MAY BE USED IN THE FIGHT AGAINST CANCER AND OTHER DISEASES CELL GENESYS AND GENPHARM INTERNATIONAL ALREADY ARE FIGHTING IN COURT OVER RELATED RESEARCH THE SLAYING OF A LAWMAKER PROVOKED A FUROR IN THE RUSSIAN GOVERNMENT WITH LAWMAKERS DEMANDING THE RESIGNATION OF INTERIOR MINISTER YERIN WHOSE OFFICE IS IN CHARGE OF PUBLIC SECURITY THE DISPUTE CAME AHEAD OF TODAY'S SCHEDULED SIGNING OF A YELTSINSPONSORED ACCORD TO PROMOTE POLITICAL HARMONY CHINA IS PREPARING FOR ANOTHER NUCLEAR TEST AND IT COULD TAKE PLACE ABOUT THE TIME THAT PRESIDENT CLINTON MUST DECIDE WHETHER TO RENEW THAT NATION'S FAVORABLE TRADE STATUS A SENIOR US OFFICIAL SAID THE CHINESE BROKE AN INTERNATIONAL MORATORIUM LAST OCTOBER WHEN THEY DETONATED A NUCLEAR DEVICE UNDERGROUND MORE AND MORE CHILDREN ARE BEING PLACED IN FOSTER CARE BECAUSE THEY HAVE BEEN NEGLECTED OR ABANDONED BY PARENTS ADDICTED TO DRUGS AND ALCOHOL ACCORDING TO A STUDY BY THE GENERAL ACCOUNTING OFFICE THE STUDY ALSO SAID INFANTS AND TODDLERS IN FOSTER CARE ARE MORE LIKELY NOW THAN IN THE 1980S TO HAVE SERIOUS HEALTH PROBLEMS THE STATE DEPARTMENT HAS QUIETLY ISSUED A VISA TO SINN FEIN LEADER MITCHEL MCLAUGHLIN THE FIRST GRANTED TO SOMEONE IN THE IRISH REPUBLICAN ARMY'S POLITICAL WING SINCE THE CONTROVERSIAL US VISIT OF SINN FEIN PRESIDENT GERRY ADAMS IN FEBRUARY MCLAUGHLIN IS TO ARRIVE TODAY AND PLANS TO SPEAK IN CLEVELAND TOMORROW ISRAELI PLANES BOMBED SUSPECTED HEZBOLLAH GUERRILLA TARGETS IN SOUTHERN LEBANON IN APPARENT RETALIATION FOR REBEL ATTACKS LEBANESE SECURITY SOURCES SAID SEPARATELY AN ARAB STABBED TWO ISRAELI SOLDIERS IN THE BACK IN JERUSALEM AND SOLDIERS LATER SHOT AND WOUNDED A PALESTINIAN WOMAN AFTER SHE TRIED TO STAB A SOLDIER IN GAZA CITY INTENSE FIGHTING ERUPTED IN RWANDA'S CAPITAL AND A UN OFFICIAL REPORTED HEAVY WEAPONS FIRE AND SHELLING NEAR THE UN HEADQUARTERS AND DOWNTOWN AREAS AS TROOPS AND REBELS CLASHED RESIDENTS WERE RUNNING OUT OF FOOD AND DRINKING WATER 9404280070 940428 ABREAST OF THE MARKET EUROPE'S STOCKS FINISH HIGHER HONG KONG OFF BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON ON A DAY OF SILENCE IN US FINANCIAL MARKETS EUROPEAN AND ASIAN STOCK MARKETS SHOWED THEY COULD HEAR THEIR OWN DRUMMERS LOUD AND CLEAR LOWER INTEREST RATES AND A BRIGHTENING ECONOMIC OUTLOOK BUOYED STOCKS IN MUCH OF EUROPE BRITISH FRENCH AND GERMAN SHARES CLIMBED 05 TO 08 BELGIAN STOCKS ROSE 11 AND DENMARK'S WERE UP 15 THE CATALYSTS WERE CUTS IN GERMAN AND BELGIAN INTEREST RATES AND PROJECTIONS OF RENEWED ECONOMIC GROWTH IN SEVERAL EUROPEAN COUNTRIES PARTICULARLY GERMANY IN ASIA FEARS OF HIGHER INTEREST RATES SENT THE HONG KONG STOCK MARKET TUMBLING 23 AND PROFITTAKING DROVE SINGAPORE SHARES DOWN 1 THE TOKYO STOCK MARKET ROSE 05 WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11455 UP 047 REFLECTING HIGHER MARKETS IN ALL REGIONS COMMODITY CHEMICALS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 13196 UP 145 OR 11 WITH RHONEPOULENC OF FRANCE POSTING A 13 GAIN IN ITS LOCAL CURRENCY PLANTATIONS STOCKS TRAILED AT 20526 DOWN 624 OR 3 WITH ASIATIC OF MALAYSIA SLIDING 54 IN LOCAL CURRENCY US STOCK AND BOND MARKETS WERE CLOSED YESTERDAY BECAUSE OF A NATIONAL DAY OF MOURNING FOR FORMER PRESIDENT RICHARD M NIXON WHO DIED FRIDAY TRADERS SAID THE RELATIVELY LOW TRADING VOLUMES IN MANY WORLD STOCK MARKETS REFLECTED THE LACK OF US ACTIVITY NONETHELESS LONDON'S FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ENDED 247 POINTS HIGHER AT 3150 WHILE THE FT 30STOCK INDEX ADVANCED 174 POINTS TO 25098 ON VOLUME OF 6188 MILLION SHARES COMPARED WITH 7536 MILLION SHARES A DAY EARLIER PARIS'S CAC 40 INDEX CLOSED UP 1641 POINTS AT 214732 IN FRANKFURT THE DAX INDEX OF 30 BLUECHIP STOCKS CLIMBED 1037 TO 225357 IN ELECTRONIC TRADING AFTER THE CLOSE OF FRANKFURT'S THREEHOUR FLOORTRADING SESSION THE INDEX ROSE A BIT HIGHER TO CLOSE AT 225698 NOT FAR FROM ITS RECORD OF 226798 SET ON JAN 3 EUROPEAN STOCK MARKETS RECEIVED AN EARLY BOOST WHEN GERMANY'S CENTRAL BANK CUT A KEY MONEYMARKET INTEREST RATE MORE THAN TRADERS AND ANALYSTS HAD EXPECTED THE MOVE RAISED EXPECTATIONS THAT OTHER CENTRAL BANKS PARTICULARLY FRANCE'S WOULD ALSO SOON LOWER RATES THE MARKETS HAVE TAKEN THIS AS A SIGN THAT THE BUNDESBANK IS IGNORING THE PROBLEM IT HAS WITH GERMANY'S EXCESSIVELY FAST MONEY SUPPLY GROWTH AND IS CONTINUING TO LOWER INTERESTS TO TRY TO GET BOND YIELDS DOWN SAID JAMES CORNISH A EUROPEAN MARKET STRATEGIST AT NATWEST MARKETS LTD IN LONDON HE NOTED THAT INVESTORS WERE BIG BUYERS OF GERMAN CHEMICAL COMPANY SHARES AFTER ANNOUNCING 18 HIGHER FIRSTQUARTER PRETAX PROFIT BAYER CLOSED 22 HIGHER AT 40480 MARKS 24150 IN FLOOR TRADING HOECHST ROSE 85 MARKS OR 25 TO 355 MARKS ON TUESDAY THE COMPANY REPORTED A 16 RISE IN FIRSTQUARTER PRETAX EARNINGS BASF WHICH IS SCHEDULED TO REPORT ITS RESULTS TODAY SAW ITS SHARES JUMP 105 MARKS OR 32 BY THE END OF THE AFTERHOUR ELECTRONIC TRADING IN BELGIUM CHEMICAL GIANT SOLVAY ROSE 525 FRANCS 1517 TO 17350 FRANCS MEANWHILE VOLKSWAGEN FELL 118 MARKS TO 527 MARKS BY THE END OF ELECTRONIC TRADING AFTER GERMAN PROSECUTORS CONFIRMED THAT THEY HAD SEIZED SECRET OPEL DOCUMENTS DURING EARLIER SEARCHES OF THE OFFICES AND HOMES OF VW PURCHASING MANAGER JOSE IGNACIO LOPEZ DE ARRIORTUA THERE IS ROOM FOR MORE MOVEMENT UPWARD IN THE MAINSTREAM EUROPEAN MARKETS SAID STEVEN BATES A DIRECTOR OF CONTINENTAL EUROPEAN EQUITIES AT FLEMING INVESTMENT MANAGEMENT LTD IN LONDON WE LIKE STOCK MARKETS WHERE THERE IS MORE OF AN OVERWEIGHTING IN THE CYCLICAL AREA SUCH AS SCANDINAVIA AND GERMANY HE ALSO FAVORS ITALIAN INDUSTRIAL COMPANIES THAT STAND TO BENEFIT FROM CORPORATE RESTRUCTURING AND A WEAK LIRA MR BATES SAID EUROPEAN BANK SHARES COULD ALSO RALLY AS EUROPEAN BOND MARKETS BEGIN TO RECOVER FROM THE BATTERING THEY'VE TAKEN DURING THE PAST THREE MONTHS YESTERDAY SHARES OF BANQUE NATIONALE DE PARIS CREDIT COMMERCIAL DE FRANCE CREDIT FONCIER DE FRANCE AND CIE DE SUEZ ROSE BY 19 TO 42 MUCH HIGHER THAN THE PARIS MARKET INDEX EVER SINCE THE US FEDERAL RESERVE BEGAN RAISING INTEREST RATES ON FEB 4 MONEY MANAGERS HAVE WONDERED WHETHER EUROPE'S STOCK AND BOND MARKETS COULD DECOUPLE FROM THE INFLUENCE OF US MARKETS WHILE WEDNESDAY'S TRADING INDICATED THAT THEY CAN MR CORNISH OF NATWEST SAID IT WAS EASY FOR EUROPE BECAUSE OF TUESDAY'S US BOND MARKET RALLY THE REAL TEST WILL BE WHETHER EUROPEAN STOCKS CAN RISE WHEN WE HAVE A BAD US BOND MARKET HE SAID IN ASIA HONG KONG'S BENCHMARK HANG SENG INDEX CLOSED AT 911325 DOWN 21539 POINTS ON WORRIES THAT INTEREST RATES WERE HEADED HIGHER POOR FOREIGN INVESTOR INTEREST AND CONCERNS THAT THE PROPERTY SECTOR WHICH CAN ACCOUNT FOR AS MUCH AS 35 OF THE INDEX MIGHT BE HEADED FOR A MAJOR CORRECTION IN THE CONTEXT OF THE VOLATILITY OF THE LAST FEW WEEKS 23 ISN'T TOO SIGNIFICANT SAID PETER EVERINGTON A MANAGING DIRECTOR AT REGENT FUND MANAGEMENT LTD IN HONG KONG STILL HE PREDICTED THAT BEFORE YEAR END THE HONG KONG MARKET NOW DOWN 25 FROM ITS EARLYJANUARY HIGHS WILL FALL TO 6000 ON THE HANG SENG INDEX IT'S A BEAR MARKET NOW IN HONG KONG SAID MR EVERINGTON AFTER MORE THAN DOUBLING IN 1993 THE HONG KONG STOCK MARKET WAS INITIALLY ROCKED BY THE RISE IN US INTEREST RATES THE NEXT DOWN LEG IN THE MARKET LATER THIS YEAR WILL COME FROM THE REALIZATION THAT THE CHINESE ECONOMY IS ABOUT TO HIT A BRICK WALL HE SAID IN TOKYO THE NIKKEI 225STOCK INDEX ROSE 10022 POINTS TO CLOSE AT 1972915 ITS FIRST GAIN AFTER TWO SUCCESSIVE DAYS OF LOSSES IN TRADING THURSDAY THE NIKKEI FELL 6072 POINTS TO CLOSE THE MORNING SESSION AT 1966843 WEDNESDAY'S TRADING VOLUME WAS A VERY SMALL 210 MILLION SHARES THE SECONDLOWEST VOLUME THIS YEAR ADVANCERS OUTNUMBERED DECLINERS 514 TO 457 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES EDGED UP 359 POINTS TO 160151 DEALERS ATTRIBUTED THE LISTLESSNESS TO INVESTOR APPREHENSION OVER HOW MUCH THE STRONG YEN WOULD CUT INTO JAPANESE CORPORATE EARNINGS JAPAN'S UNSETTLED POLITICAL SITUATION AND THE FORTHCOMING GOLDEN WEEK HOLIDAY PERIOD THAT BEGINS FRIDAY STILL MR EVERINGTON OF REGENT FUND MANAGEMENT PREDICTED THAT JAPANESE SHARES UP 13 SO FAR THIS YEAR WOULD RISE ANOTHER 25 DESPITE THEIR SELLING AT ROUGHLY 70 TIMES EARNINGS HE CONTENDED JAPANESE STOCKS LOOK INCREDIBLY CHEAP BY OTHER MEASURES OF VALUE SUCH AS PRICE TO BOOK AND PRICE TO CASH FLOW JAPAN IS IN A FOURYEAR TO FIVEYEAR BULL MARKET THAT BEGAN ABOUT A YEAR AGO SAID MR EVERINGTON CORPORATE CUTBACKS MEAN THAT EARNINGS WILL TREBLE OVER THE NEXT THREE TO FOUR YEARS NOTWITHSTANDING THE FACT THAT THE ECONOMY WILL REMAIN RELATIVELY ANEMIC IN THAT PERIOD OVERALL MR EVERINGTON FORESEES A PERIOD OF FINANCIAL INFLATION AS EXCESS LIQUIDITY IS INVESTED IN STOCKS BECAUSE JAPAN'S TROUBLED BANKS WILL BE UNWILLING TO LEND TO COMPANIES 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 9404280069 940428 BUSINESS BRIEF PLACER DOME INC FIRSTQUARTER EARNINGS TRIPLED TO 37 MILLION FIRSTQUARTER EARNINGS AT PLACER DOME INC MORE THAN TRIPLED BOOSTED BY FIRMER GOLD PRICES AND A GAIN FROM THE SALE OF INVESTMENTS THE VANCOUVER BRITISH COLUMBIA COMPANY REPORTED A PROFIT OF 37 MILLION OR 16 CENTS A SHARE COMPARED WITH 11 MILLION OR FIVE CENTS A SHARE A YEAR EARLIER THE LATEST QUARTER INCLUDED A GAIN OF 6 MILLION FROM THE SALE OF INVESTMENTS IN OTHER MINING COMPANIES REVENUE WAS 216 MILLION UP FROM 213 MILLION THE GOLD PRODUCER'S EARNINGS JUMPED DESPITE LOWER GOLD OUTPUT AND HIGHER COSTS GOLD PRODUCTION IN THE FIRST QUARTER SLIPPED TO 442000 OUNCES FROM 450000 OUNCES AND THE AVERAGE CASH COST WAS 198 PER OUNCE UP FROM 192 A YEAR EARLIER THE COMPANY'S AVERAGE REALIZED PRICE FOR GOLD WAS 385 PER OUNCE UP FROM 352 A YEAR EARLIER PLACER DOME SAID IT FORECASTS ITS SHARE OF GOLD PRODUCTION TO BE ABOUT 18 MILLION OUNCES THIS YEAR ABOUT THE SAME AS 1993 9404280068 940428 BUSINESS BRIEF MARION MERRELL DOW INC FIRSTPERIOD NET ROSE 19 NEW GENERIC BUSINESS CITED MARION MERRELL DOW INC HELPED IN PART BY ITS ENTRY INTO THE GENERIC DRUG BUSINESS SAID FIRSTQUARTER EARNINGS JUMPED 19 FROM LAST YEAR'S DISAPPOINTING FIRST QUARTER THE KANSAS CITY MO PHARMACEUTICAL CONCERN POSTED NET INCOME OF 86 MILLION OR 31 CENTS A SHARE COMPARED WITH 74 MILLION OR 26 CENTS A SHARE IN THE YEARAGO PERIOD THE RECENT QUARTER'S RESULTS WERE TRIMMED BY A FOURCENTASHARE CHARGE LINKED TO WHAT MARION MERRELL CHARACTERIZED AS A DECLINE IN THE COMPANY'S SHORTTERM INVESTMENT PORTFOLIO AS REPORTED MARION MERRELL RECENTLY FILED SUIT AGAINST FUND MANAGER DAVID ASKIN ALLEGING THAT HE IMPROPERLY HANDLED SOME OF ITS INVESTMENTS GIVING IT A LOSS FIRSTQUARTER SALES CLIMBED 15 TO 708 MILLION FROM 617 MILLION THE COMPANY ATTRIBUTED THE EARNINGS BOOST TO ITS RECENT ACQUISITION OF GENERICDRUG MAKER RUGBY GROUP INC FOR THE QUARTER RUGBY CONTRIBUTED 65 MILLION TO MARION MERRELL'S TOTAL SALES 9404280067 940428 COMPUTERS A SAMPLING OF WINNERS AND LOSERS BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL THE FOLLOWING SELECTIONS ARE RECENT WINNERS AND LOSERS AMONG THE MORE THAN 770 TITLES APPRAISED BY CHILDREN'S SOFTWARE REVUE YPSILANTI MICH A BIMONTHLY NEWSLETTER FOR PARENTS AND EDUCATORS INDIVIDUAL PROGRAMS' USEFULNESS DEPENDS ON A USER'S AGE AND EDUCATIONAL NEEDS AND SOME PROGRAMS WILL IMPROVE IN LATER VERSIONS 9404280066 940428 CORRECTIONS & AMPLIFICATIONS BRINKER INTERNATIONAL INC'S STOCK RECENTLY TRADED AT 33 TIMES TRAILING 12MONTH EARNINGS NOT THE 24 MULTIPLE SHOWN IN THE STOCK TABLES AND THE TABLE OF RESTAURANT STOCKS ACCOMPANYING YESTERDAY'S HEARD ON THE STREET COLUMN THE CORRECTED FIGURE TAKES INTO ACCOUNT A 3FOR2 STOCK SPLIT NORTHERN TELECOM LTD'S STOCK PRICE ROSE 2 TO CLOSE AT 29875 A SHARE TUESDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AN ARTICLE YESTERDAY ON NORTHERN TELECOM'S EARNINGS INCORRECTLY STATED THAT THE STOCK SLID 2 THE ADVERTISING AGENCY FOR THE NEWS DIVISION OF CAPITAL CITIES/ABC INC'S ABC TELEVISION NETWORK IS CHARRON SCHWARTZ & PARTNERS NEW YORK MONDAY'S ADVERTISING COLUMN INCORRECTLY SAID THE AGENCY IS GREY ADVERTISING 9404280065 940428 LETTERS TO THE EDITOR LET'S CALL THE VILLAINS BY THEIR REAL NAME IN YOUR APRIL 19 EDITORIAL EXPLOITING THE WEST'S PARALYSIS YOU UNLIKE MANY IN THE MEDIA CORRECTLY REFER TO THE AGGRESSORS IN BOSNIA AS SERBIAN WHOSE CAPITAL IS BELGRADE RATHER THAN MAINTAINING THE FICTION OF BOSNIAN SERBS AS THE AGGRESSOR THE SERBIAN FORCES IN BOSNIA ARE KNOWN TO ALL INCLUDING THE UN AND NATO AS SERBIAN REGULARS FROM YUGOSLAVIA WITH A HANDFUL OF BOSNIAN SERBS THROWN IN THE BOSNIAN SERB COMMANDER RATKO MLADIC WAS THE CROATIAN SERB LEADER IN KNIN DURING THE WAR OF AGGRESSION AGAINST CROATIA WITH BRIGADESTRENGTH MOVEMENTS MASSED TANKS AND ARTILLERY JETFIGHTER ATTACKS AND HELICOPTER GUNSHIPS IT'S TIME THAT OTHERS FOLLOW YOUR LEAD AND DROP THE FICTION OF A BOSNIAN SERB ARMY 9404280064 940428 BUSINESS BRIEF POLICY MANAGEMENT SYSTEMS CORP INSURANCE SOFTWARE CONCERN TO BUY SHARES HELD BY IBM POLICY MANAGEMENT SYSTEMS CORP SAID IT AGREED TO PURCHASE APPROXIMATELY 23 MILLION OF ITS COMMON SHARES HELD BY INTERNATIONAL BUSINESS MACHINES CORP FOR 2477 EACH OR 56 MILLION IBM'S REMAINING 15 MILLION SHARES WILL BE SOLD TO GENERAL ATLANTIC PARTNERS A NEW YORKBASED INVESTMENT FIRM ALSO FOR 2477 EACH THE SHARES BEING REPURCHASED BY POLICY MANAGEMENT ARE ABOUT 10 OF ITS TOTAL SHARES OUTSTANDING GENERAL ATLANTIC WILL OWN APPROXIMATELY 75 OF POLICY MANAGEMENT SHARES IBM BASED IN ARMONK NY PAID 1165 MILLION IN 1989 FOR THE STOCK IN THE COLUMBIA SC INSURANCE SOFTWARE MAKER POLICY MANAGEMENT'S SHARES DECLINED FOLLOWING DISCLOSURES THAT FINANCIAL RESULTS WOULD FALL BELOW EXPECTATIONS POLICY MANAGEMENT'S STOCK CLOSED AT 2725 A SHARE DOWN 125 CENTS IN COMPOSITE TRADING TUESDAY ON THE NEW YORK STOCK EXCHANGE 9404280063 940428 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 5/8 HIGH 3 LOW 3 BID 3 3/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 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 44 DAYS 387 45 TO 59 DAYS 393 60 TO 74 DAYS 402 75 TO 89 DAYS 408 90 TO 119 DAYS 420 120 TO 149 DAYS 430 150 TO 179 DAYS 445 180 TO 254 DAYS 470 255 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 388 30 DAYS 400 60 DAYS 414 90 DAYS CERTIFICATES OF DEPOSIT 341 ONE MONTH 339 TWO MONTHS 354 THREE MONTHS 395 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 LONDON LATE EURODOLLARS 3 15/16 3 13/16 ONE MONTH 4 1/16 3 15/16 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 545 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 822 60 DAYS 834 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 837 60 DAYS 845 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 650 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 9404280062 940428 WHO'S NEWS LUKENS INC LUKENS INC COATESVILLE PA T KEVIN DUNNIGAN 56 YEARS OLD WAS ELECTED TO THE BOARD OF THIS STEELPLATE MAKER HE SUCCEEDS FREDRICK R DUSTO WHO RETIRED THE SIZE OF THE BOARD REMAINS UNCHANGED AT 11 MR DUNNIGAN IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THOMAS & BETTS CORP 9404280061 940428 LETTERS TO THE EDITOR COLLAGEN PRODUCTS PROVEN SAFE TO USE YOUR MARCH 29 ARTICLE COLLAGEN CORP'S VIDEO USES NEWS FORMAT INCORRECTLY CHARACTERIZES COLLAGENBASED THERAPIES AS UNSAFE AND DIRECTLY LINKED TO AUTOIMMUNE DISEASES AND IMPLIES THAT NEITHER THE FOOD AND DRUG ADMINISTRATION NOR COLLAGEN CORP HAVE DONE ENOUGH TO ENSURE THAT OUR COLLAGENBASED PRODUCTS HAVE BEEN PROVEN SAFE NOTHING COULD BE FURTHER FROM THE FACTS TO BEGIN WITH INJECTABLE BOVINE COLLAGEN IS A PROTEIN NOT A PURIFIED BOVINE FAT IT IS NO SECRET THAT COLLAGEN CORP HAS DEALT WITH ALLEGATIONS OF POSSIBLE LINKS BETWEEN INJECTABLE COLLAGEN AND TWO RARE AUTOIMMUNE DISEASES POLYMYOSITIS/DERMATOMYOSITIS PM/DM BUT YOU OMIT A KEY EVENT REGARDING THE CONTROVERSY SURROUNDING OUR PRODUCTS A MEETING OF SCIENTIFIC EXPERTS IN RHEUMATOLOGY EPIDEMIOLOGY AND IMMUNOLOGY WAS CONVENED BY THE FDA IN 1991 TO DISCUSS ALL AVAILABLE SCIENTIFIC EVIDENCE REGARDING THE PM/DM ISSUE THE EXPERTS ULTIMATELY CONCLUDED THAT THERE WAS INSUFFICIENT EVIDENCE TO SUPPORT A CONCLUSION THAT COLLAGEN INJECTIONS CAUSE AUTOIMMUNE OR CONNECTIVE TISSUE DISEASES IN PERSONS WITHOUT A HISTORY OF THESE DISEASES WE CONTINUE TO PROVIDE THE FDA WITH REPORTS OF ALL ADVERSE REACTIONS TO OUR PRODUCTS THIS ACTIVITY IS REQUIRED BY THE FDA IN ITS EFFORT TO MONITOR THE SAFETY OF ALL PRODUCTS WE ARE UNAWARE OF ANY SPECIFIC INVESTIGATION BEING CONDUCTED BY FDA BEYOND ROUTINE MONITORING OF OUR REPORTS AND THE GENERAL SCIENTIFIC LITERATURE 9404280060 940428 LETTERS TO THE EDITOR RECALCITRANT OWNER CAUSED BELNORD'S WOES YOUR CITING OF THE BELNORD PAGE ONE MARCH 21 AS AN EXAMPLE OF NEW YORK CITY RENT CONTROL'S DAMAGING EFFECTS ON A BUILDING IS MISGUIDED THE TRUTH IS THE REVERSE GOVERNMENT RENT AND MAINTENANCE REGULATIONS HAVE SAVED THE BELNORD A NATIONAL LANDMARK FROM THE DESTRUCTIVE MISMANAGEMENT OF ITS OWNER THE BELNORD IS NOT A CONVENTIONAL EXAMPLE OF RENT CONTROL ITS CURRENT RENTS ARE NOT NORMAL RENTS THEY ARE THE RESULT OF PENALTIES IMPOSED ON THE OWNER FOR SERIOUS AND CONTINUING VIOLATIONS OF THE LAW AS DETERMINED IN EXTENSIVE HEARINGS AND AFFIRMED BY NEW YORK STATE'S HIGHEST COURTS THE RENT LEVELS WOULD HAVE BEEN RESTORED LONG AGO HAD THE OWNER MADE COURTORDERED REPAIRS PROVIDED MINIMAL SERVICES AND CEASED HARASSING TENANTS THE ISSUES HERE ARE NOT ABOUT PEELING PAINT AS ALLEGED BUT ABOUT LIFETHREATENING HAZARDOUS CONDITIONS INCLUDING FALLING ELEVATORS A COLLAPSING ROOF AND WIDESPREAD ASBESTOS THESE PROBLEMS COULD BE WORKED OUT WITH A COOPERATIVE OWNER INSTEAD THE OWNER HAS MAINTAINED A PATTERN OF HARASSMENT AND ATTEMPTED EVICTIONS THE BELNORD STANDS ON 86TH STREET RENAMED ISAAC BASHEVIS SINGER BOULEVARD UPON MR SINGER'S DEATH AS MR SINGER LAY DYING TOO ILL TO RETURN TO NEW YORK FROM FLORIDA THE OWNER MOVED TO EVICT MRS SINGER 9404280059 940428 LETTERS TO THE EDITOR ONLY ONE WAY TO STOP GENOCIDE ON THE STREETS AS AN AFRICANAMERICAN LIVING IN A TROUBLED INNERCITY COMMUNITY I APPLAUD RANDALL KENNEDY'S APRIL 10 EDITORIALPAGE ARTICLE BLACKS AND CRIME FOR ITS STRAIGHTFORWARD VIEWS ON LAW ENFORCEMENT IN THE AFRICANAMERICAN COMMUNITY THE FACT THAT FAR TOO LITTLE ATTENTION IS PAID TO THE VICTIMS OR WOULDBE VICTIMS OF CRIME BY SINGULARLY RACEFOCUSED LEADERS AND AN EQUALLY DISPROPORTIONATE AMOUNT OF CONCERN GIVEN TO THE PERPETRATORS OF CRIMINAL ACTIVITY DISTURBS ME THE NOTION THAT AFRICANAMERICANS ARE DISPROPORTIONATELY BURDENED BY HARSH SENTENCING OF CRACK COCAINE DEALERS IS RIDICULOUS AND IS SHARPLY OFFENSIVE TO THOSE OF US WHO ARE LAWABIDING CITIZENS IF ANYTHING TOUGH PUNISHMENT IS THE FIRST STEP IN REMOVING THE CRIMINAL ELEMENT FROM THE STREETS AND RESTORING OUR FAMILY NEIGHBORHOODS A DRUG DEALER WHO HAPPENS TO BE BLACK IS IN MY EYES A CRIMINAL AND SHOULD RECEIVE THE APPROPRIATE SENTENCING IRRESPECTIVE OF HIS RACE THE HIGH PERCENTAGE OF BLACKS CONVICTED OF CRACK COCAINE DISTRIBUTION IS A REVEALING INDICATION OF THE PERVASIVE DESTRUCTION THAT THE SUBSTANCE HAS HAD ON OUR COMMUNITY THE REAL GENOCIDE IS NOT OCCURRING WITHIN OUR CORRECTIONAL FACILITIES BUT ON OUR STREETS BECAUSE OF A DEARTH OF LAW ENFORCEMENT AND SENSIBLE LEADERSHIP 9404280058 940428 LETTERS TO THE EDITOR CRACK DEGRADES THEN DESTROYS USERS WILLIAM MCGOWAN'S APRIL 14 EDITORIALPAGE ESSAY THE MEDIA'S RACE TABOO POINTS OUT VIVIDLY ONE OF AMERICA'S GREATEST PROBLEMS WITH CRACK COCAINE PERCEPTION IN THE BOOK COCAINE TRUE COCAINE BLUE BY PHOTOGRAPHER EUGENE RICHARDS THERE IS A PICTURE OF AN IMPOVERISHED BLACK WOMAN WITH A BABY STRAPPED TO HER BACK PROSTITUTING HERSELF TO A JOHN BETWEEN PICTURES OF MALCOLM X AND DR MARTIN LUTHER KING WHEN FORCED TO ADMIT WHAT REALLY BOTHERED THEM ABOUT THE PICTURE BOTH BETTY DOPSON SPOKESWOMAN FOR COMMITTEE TO ELIMINATE MEDIA OFFENSIVE TO AFRICAN PEOPLE AND NEW YORK TIMES EDITORIAL WRITER BRENT STAPLES IN ESSENCE SAID THEY CANNOT BELIEVE ANYONE WHO RESPECTED THESE TWO MEN WOULD SO HORRIBLY DEGRADE THEMSELVES AND THEIR CHILD SOLELY TO GET A FEW DOLLARS CASH TO SPEND ON A DRUG BUT THAT'S JUST THE POINT MR RICHARDS ILLUSTRATES THAT IN ORDER TO GET CRACK YES PEOPLE WILL DEGRADE THEMSELVES EVEN A MOTHER OF A SMALL CHILD REPEATEDLY UNTIL THEY ARE DEAD OR CURED I RECENTLY ASKED A RECOVERING ADDICT WHO IS NOW ON STAFF AT A LOCAL MISSION WHAT I AND MY CHURCH COULD DO TO HELP I EXPECTED TO HEAR ABOUT MONEY FOOD AND CLOTHING DONATIONS OR VOLUNTEER WORK HE LOOKED DIRECTLY IN MY EYES AND SAID FORCE THE LOCAL POLICE AND POLITICIANS TO PUT A DENT IN THE CRACK TRADE YOU'LL NEVER STAMP IT OUT BUT WE'VE GOT TO GET SERIOUS I SAID YES ALL CHEMICAL ADDICTIONS ARE TERRIBLE AND WE NEED TO DO MORE HE TOLD ME I DID NOT UNDERSTAND THAT HE HAD USED OR BEEN AROUND ALMOST EVERY TYPE OF DRINK OR DRUG IMAGINABLE BUT THAT CRACK WAS THE ONLY THING HE HAD SEEN THAT CONSISTENTLY HOOKED HELD AND DESTROYED ITS USERS AND YES EVEN SEEMED TO ALWAYS EVENTUALLY CAUSE THE DESTRUCTION OF A WOMAN'S MOTHERING INSTINCTS IF MS DOPSON AND MR STAPLES SEE THEMSELVES AS LEADERS BY VIRTUE OF THE FACT THAT THEY CAN FREELY EDIT OUT THE UNCOMFORTABLE TO LEAVE ONLY THE POSITIVE CULTURAL EXPERIENCES THEN EVILS SUCH AS CRACK HAVE AN UNFORTUNATELY BRIGHT FUTURE IN AMERICA DUE TO OUR IGNORANCE ABOUT THEIR POTENCY AFTER READING MR MCGOWAN'S ARTICLE I AM LEFT WONDERING WHY INSTEAD OF RUNNING THE PHOTOGRAPH THAT PLAYED SUCH A MAJOR ROLE IN THE ARTICLE YOU USED ANOTHER PRESUMABLY LESS EMOTIONAL PHOTO FROM MR RICHARDS'S BOOK COULD IT BE THAT YOU AND PERHAPS YOUR READERS WOULD FIND A SHOT OF A BLACK WOMAN WITH A BABY STRAPPED TO HER BACK ON HER KNEES PERFORMING WHAT LOOKS LIKE ORAL SEX ON A JOHN IN A CRACK HOUSE WITH PICTURES OF MARTIN LUTHER KING AND MALCOLM X IN THE BACKGROUND AS DEMEANING AND DEGRADING AS DID THE AMSTERDAM NEWS I FIND IT TRULY UNFORTUNATE THAT MR RICHARDS'S THWARTED ECONOMIC INTERESTS WOULD LEAD HIM TO DISMISS MS DOPSON'S COMPLAINT ABOUT THE PICTURE AS ONLY A DESIRE TO DISSOCIATE HERSELF FROM POOR PEOPLE IS IT MR RICHARDS'S POSITION THAT THE BEHAVIOR IN QUESTION IS TYPICAL OF POOR PEOPLE IT IS EVEN MORE UNFORTUNATE THAT IN A CLEAR DEMONSTRATION OF HYPOCRISY YOU WOULD DEVOTE SPACE TO MR RICHARDS'S LAMENT IN ORDER TO ONCE AGAIN CRITICIZE THE POLITICAL CORRECTNESS OF OTHERS WHILE DEMONSTRATING YOUR OWN UNWILLINGNESS TO BE POLITICALLY INCORRECT BY PUBLISHING THE PHOTOGRAPH IN QUESTION 9404280057 940428 POLITICS & PEOPLE CONGRESS GET THINE OWN CAMPAIGN FINANCES IN ORDER BY ALBERT R HUNT ONE OF THE MANY LEGACIES OF RICHARD NIXON AND WATERGATE WAS A REFORM OF THE PRESIDENTIAL CAMPAIGN FINANCING SYSTEM THIS FOLLOWED REVELATIONS OF ILLEGAL CORPORATE CONTRIBUTIONS TO MR NIXON'S 1972 CAMPAIGN PAYOFFS FROM GROUPS LIKE THE MILK PRODUCERS TALES OF BLACK SATCHELS STUFFED WITH CASH CLANDESTINELY SLIPPED TO CAMPAIGN OPERATIVES AND DONATIONS USED FOR POLITICAL DIRTY TRICKS AND THE INFAMOUS WHITE HOUSE PLUMBERS THE WATERGATE BURGLARS WERE FUNDED IN PART BY CAMPAIGN CONTRIBUTIONS THERE WAS SO MUCH MONEY AND SO LITTLE ACCOUNTABILITY THAT ABUSES WERE ALMOST INEVITABLE THE UPSHOT WAS A SYSTEM OF FAIRLY STRICT ACCOUNTABILITY SPENDING AND CONTRIBUTION LIMITS PARTIAL PUBLIC FINANCING OF PRESIDENTIAL PRIMARIES AND TOTAL TAXPAYER FINANCING OF THE GENERAL ELECTION THIS SYSTEM HAS ITS IMPERFECTIONS AND LOOPHOLES BUT IT HAS REDUCED THE INFLUENCE OF MONEY AND SPECIAL INTERESTS IN PRESIDENTIAL ELECTIONS AND IS FAR PREFERABLE TO THE OLD WAY OVER THE NEXT FEW WEEKS CONGRESS HAS AN OPPORTUNITY AFTER 20 YEARS TO START ADDRESSING ITS OWN CORROSIVELY CORRUPTING SYSTEM OF FINANCING CAMPAIGNS BUT AN UNHOLY ALLIANCE OF SENATE REPUBLICAN AND HOUSE DEMOCRATIC INCUMBENTS WANTS TO KILL THE MEASURE IT'LL BE OUTRAGEOUS IF THIS GAMBIT SUCCEEDS THE GOAL OF ANY LEGISLATION SHOULD BE TO REDUCE THE SPECIAL INTEREST MONEY IN CONGRESSIONAL CAMPAIGNS BUT THE SINGLE MOST IMPORTANT OBJECTIVE SHOULD BE TO INCREASE COMPETITION THE LAST CONGRESSIONAL ELECTIONS ILLUSTRATE THE NEED IN 1992 27 OF 28 SENATE INCUMBENTS OUTSPENT THEIR CHALLENGERS AND 24 OF THEM WON THE ONLY HIGHERSPENDING CHALLENGER WAS CALIFORNIA'S DIANNE FEINSTEIN WHOSE OPPONENT WAS AN APPOINTED SENATOR WHO HADN'T HAD SUFFICIENT TIME TO BUILD UP FUNDRAISING CHITS INCUMBENTS RECEIVED ALMOST SIX TIMES AS MUCH FROM POLITICAL ACTION COMMITTEES AS DID THEIR CHALLENGERS THE ODDS WERE EVEN MORE LOPSIDED IN THE HOUSE IN 332 OF THE 339 CONTESTS INVOLVING A MEMBER RUNNING FOR REELECTION THE INCUMBENT OUTSPENT THE CHALLENGER OVERALL INCUMBENTS SPENT MORE THAN THREE TIMES AS MUCH AS THEIR CHALLENGERS AND RAISED NINE TIMES MORE MONEY FROM PACS FEELING PUBLIC PRESSURE THE HOUSE AND THE SENATE LAST YEAR PASSED DIFFERENT CAMPAIGN FINANCING BILLS THAT PARTIALLY ADDRESS THESE PROBLEMS TOP DEMOCRATS IN BOTH HOUSES HAVE BEEN MEETING PRIVATELY FOR WEEKS TO HAMMER OUT A COMPROMISE THEY NOW ARE CLOSE AND PROBABLY WILL CONVENE A FORMAL HOUSESENATE CONFERENCE TO DRAFT A FINAL MEASURE WITHIN THE NEXT FEW WEEKS THERE ARE THREE MAJOR OBSTACLES ONE IS THAT TO CURTAIL SPENDING SOME INCENTIVES IN THE FORM OF PUBLIC FUNDING ARE NECESSARY THAT DRAWS THE IRE OF CONSERVATIVE HOUSE DEMOCRATS AND SOME OF THE SEVEN SENATE REPUBLICANS WHO AFTER GETTING DEMOCRATS TO KILL ANY PUBLIC FINANCING HELPED BREAK A GOP FILIBUSTER AGAINST THE OVERALL LEGISLATION IF AN ACCEPTABLE FORMULA ON SOME PUBLIC FUNDS IS REACHED THE NEXT PROBLEM IS HOW TO PAY FOR IT FINALLY THE MOST DIFFICULT ISSUE MAY BE WHETHER TO REDUCE THE AMOUNT A PAC CAN GIVE TO A MEMBER SUCH A REDUCTION IS ADAMANTLY OPPOSED BY THE PACDEPENDENT HOUSE DEMOCRATS AND JUST AS ADAMANTLY ADVOCATED BY THE SENATE GOP'S GANG OF SEVEN WHO ARE NEEDED TO PASS ANY FINAL BILL NEVERTHELESS A COMPROMISE SHOULDN'T BE THAT TOUGH THERE WILL BE SPENDING LIMITS A SLIDING FORMULA BASED ON A STATE'S POPULATION FOR SENATORS AND A 660000 CEILING FOR THE HOUSE THE AMOUNT OF OVERALL PAC CONTRIBUTIONS ANYONE CAN TAKE WOULD BE LIMITED PUBLIC SUPPORT WOULD BE PROVIDED IN THE FORM OF DIRECT COMMUNICATIONS VOUCHERS FOR HOUSE CANDIDATES UP TO 200000 THROUGH MATCHING PRIVATE CONTRIBUTIONS OF 200 OR LESS AND GIVING SENATORS A 50 DISCOUNT FOR TELEVISION ADVERTISING THE PRIVATE NEGOTIATIONS ALSO HAVE YIELDED A FIG LEAF ON HOW TO PAY FOR THIS WITHOUT DIRECTLY TAPPING TAXPAYERS THE COST OF ROUGHLY 100 MILLION PER ELECTION CYCLE WOULD BE FUNDED BY AN ADDITIONAL VOLUNTARY CHECKOFF ON TAX RETURNS AN EXCISE FEE ON PACS AND PROCEEDS FROM THE EXTRA MONEY THE GOVERNMENT WILL GET FROM INDEXING CIVIL PENALTIES FOR INFLATION ANY BILL ALSO MUST INCLUDE A SIGNIFICANT CRACKDOWN ON THE ABUSES OF SOFT MONEY OR FUNDS GIVEN TO THE POLITICAL PARTIES THAT AREN'T SUBJECT TO CAMPAIGN CONTRIBUTION RULES AND A FLAT PROHIBITION ON CONVERTING CAMPAIGN CONTRIBUTIONS TO PERSONAL USE OVERALL ANY SUCH MEASURE WOULD INCREASE COMPETITION IN CONGRESSIONAL RACES THE SPENDING CEILING WOULD HAVE REDUCED SENATE INCUMBENTS' EXPENDITURES BY ONETHIRD IN 1992 AND HAD A NEGLIGIBLE IMPACT ON CHALLENGERS THE DISCOUNTED TV TIME CLEARLY WOULD HAVE CREATED A FEW MORE COMPETITIVE CONTESTS THE IMPACT ON THE HOUSE WOULD BE MORE FARREACHING THE 660000 SPENDING CEILING WOULD HAVE AFFECTED 111 INCUMBENTS LAST TIME BUT ONLY SEVEN CHALLENGERS ONLY ONE OF THOSE SEVEN REPUBLICAN JAMES TALENT OF MISSOURI BOTH OUTSPENT HIS OPPONENT AND WON ON THE OTHER HAND THERE WERE 179 RACES IN WHICH THE CHALLENGER SPENT LESS THAN 100000 THE MINIMUM NECESSARY FOR A CREDIBLE CAMPAIGN IT'S THEREFORE NOT SURPRISING THAT MORE THAN A FEW HOUSE INCUMBENTS WOULD LOVE TO KILL THIS MEASURE WITHOUT GETTING BLAMED FOR IT THAT HELPS EXPLAIN WHY SOME HOUSE DEMOCRATS ARE ADAMANT THAT THE OVERALL 10000 LIMIT THAT A MEMBER CAN TAKE FROM A SINGLE PAC NOT BE REDUCED WITH A SPENDING LIMIT AND COMMUNICATIONS VOUCHERS THEY WOULDN'T BE AFFECTED IF THAT FIGURE WERE CUT IN HALF BUT IF THEY DON'T CUT IT THE SENATE REPUBLICANS WILL HAVE AN EXCUSE TO VOTE AGAINST ANY COMPROMISE LEGISLATION THE BOTTOM LINE FOR A NUMBER OF HOUSE DEMOCRATS THE CURRENT SYSTEM IS A GREAT RACKET FOR US SO DON'T CHANGE IT MANY REPUBLICANS MEANWHILE PRIVATELY BELIEVE THAT THE MONIED INTERESTS SHOULD BE WITH THEM AND IN TIME WILL BE THE EVIDENCE OF THE PAST TWO DECADES NOTWITHSTANDING THEIR OTHER STATED OBJECTIVES MAINLY ARE A CAMOUFLAGE CAMPAIGN FINANCE REFORM IS THE SINGLE MOST IMPORTANT WAY TO REFORM CONGRESS THE ARGUMENT FOR TERM LIMITS HAS BEEN CRIPPLED BY THE FACT THAT IN THE NEXT CONGRESS AS MANY AS 250 OF THE 435 HOUSE MEMBERS WILL HAVE BEEN ELECTED IN THE 1990S IT MAY WELL BE AS REP JIM LEACH ONE OF THE FEW REPUBLICANS GENUINELY INTERESTED IN CAMPAIGN FINANCE REFORM SAYS THAT ANY MEASURE WILL BE MORE CHANGE THAN REAL REFORM BUT AS HE ADDS THAT CHANGE WOULD CERTAINLY BE IN THE RIGHT DIRECTION THE ISSUE IS CLEARLY DRAWN WHETHER INCUMBENTS UNDER THE GUISE OF ALLOWING THE PERFECT TO BE THE ENEMY OF THE GOOD WILL GET AWAY WITH A BLATANT EFFORT TO PROTECT THEIR SELFISH INTERESTS 9404280056 940428 WHO'S NEWS EATON CORP EATON CORP CLEVELAND VICTOR A PELSON AND HENRY T YANG WERE ELECTED DIRECTORS OF THIS MAKER OF VEHICLEPOWERTRAIN COMPONENTS AND CONTROLS FOR INDUSTRIES INCLUDING TRANSPORTATION MR PELSON 56 YEARS OLD IS EXECUTIVE VICE PRESIDENT OF AT&T CORP AND SUCCEEDS ARTHUR DOLE III WHO RETIRED MR YANG 53 DEAN OF THE SCHOOLS OF ENGINEERING AT PURDUE UNIVERSITY IS TO BECOME CHANCELLOR AT THE UNIVERSITY OF CALIFORNIA SANTA BARBARA IN JUNE EATON SAID THE BOARD WAS EXPANDED BY ONE TO 14 9404280055 940419 REVIEW & OUTLOOK EDITORIAL EXPLOITING THE WEST'S PARALYSIS WITH THEIR VICIOUS ATTACK ON GORAZDE THE SERBS HAVE RAISED THE ANTE IN THEIR POKER GAME WITH THE UNITED NATIONS AND NATO CLEARLY THEY HAVE COME TO BELIEVE THAT THEY CAN ACT WITH IMPUNITY THEY NEED TO BE DISABUSED OF THAT NOTION BUT IF THAT IS TO HAPPEN SOMEONE IN THE WEST WILL HAVE TO LEAD WE HAD HOPED LAST WEEK THAT BILL CLINTON THE NOMINAL LEADER OF THE FREE WORLD HAD ACCEPTED THAT RESPONSIBILITY WHEN HE ALLOWED US PLANES TO ATTACK SERB FORCES AROUND GORAZDE BUT THE US EFFORT BY PILOTS FLYING BELOW CLOUD COVER TO DROP DUMB BOMBS AT GREAT RISK TO THEMSELVES WAS LITTLE MORE THAN TOKENISM DOING ONLY MINOR DAMAGE TO THE SERB FORCES WHEN THE SERBS SHOT DOWN A BRITISH SEA HARRIER FIGHTER ATTACKING A SINGLE SERB TANK ON SATURDAY THEY CLEARLY WERE FURTHER CONVINCED THAT NATO CAN'T HARM THEM MUCH WITH AIR POWER SO MUCH EMBOLDENED IN FACT THAT THEY SENT THEIR TANKS RIGHT INTO GORAZDE A UNDECLARED SAFE HAVEN AND SHELLED THE TOWN MERCILOUSLY CONFUSION REIGNED IN THE WESTERN CAMP THE FRENCH WITH 4000 PEACEKEEPERS IN BOSNIA DEMANDED AN IMMEDIATE EUUSRUSSIA CONFERENCE IN GENEVA TO DECIDE WHAT TO DO THE FRENCH HUMANITARIAN GROUP DOCTORS WITHOUT BORDERS CALLED FOR THE RESIGNATION OF THE UN REPRESENTATIVE IN BOSNIA YASUSHI AKASHI BECAUSE OF THE HASH THE UN HAS MADE OF THE WHOLE AFFAIR THE UN FIELD COMMANDER BRITISH LT GEN SIR MICHAEL ROSE SEEMED TO HAVE LITTLE IDEA OF WHAT TO DO SAYING WITH REGARD TO THE SERBS THAT THE TOWN IS AT THEIR MERCY AND WE ARE ON THE EDGE OF A MAJOR HUMANITARIAN CATASTROPHE MR CLINTON FOR HIS PART SEEMED MORE INTENT YESTERDAY ON REASSURING THE SERBS THAN HIS ALLIES HE CALLED FOR LIFTING THE ARMS EMBARGO AGAINST THE BOSNIANS BUT ONLY IF THE BRITISH AND FRENCH VOLUNTEER THE SAME OFFER HE SUGGESTED MORE AIR STRIKES WOULDN'T WORK CITING THE BELEAGUERED GEN ROSE AS HIS AUTHORITY ON THIS SUBJECT THE BEST THE WHITE HOUSE HAD BEEN ABLE TO DO OVER THE WEEKEND WAS TO WARN THE SERBS NOT TO SHOOT AT PEACEKEEPERS BUT THAT DIDN'T SEEM TO DETER THEM FROM DOING JUST THAT SO FACED WITH THIS ROUT BY THE MIGHTY FORCES OF SERBIAN BOSNIA WHAT ARE THE WESTERN FORCES TO DO NOW THAT'S A GOOD QUESTION CLEARLY A POLICY OF ONTODAY OFFTOMORROW THREATS OF AIR STRIKES AND THEN THREE INEFFECTUAL SORTIES WON'T DO MUCH TO DETER THE SERBS OR THE SOMALIS OR ANYONE FOR THAT MATTER AFTER THE PAST WEEKEND YOU MIGHT SAY THAT US UN AND NATO CREDIBILITY ARE NOW DOWN TO ABOUT ZERO ONE ANSWER WOULD BE FOR THE WESTERN FORCES TO WALK AWAY FROM GORAZDE AND PRETEND IT DIDN'T HAPPEN THE WEST COULD JUST SAY WELL YOU WIN A FEW AND YOU LOSE A FEW THAT'S LIFE BUT NOTHING IS EVER THAT SIMPLE IN INTERNATIONAL AFFAIRS PRESIDENT CLINTON HAS OBVIOUSLY FAILED IN HIS EVERPRESENT INSTINCT TO FINESSE HIS WAY THROUGH A PROBLEM BY TALKING WITHOUT TAKING ANY SUBSTANTIVE ACTION FOR WHICH HE MIGHT BE BLAMED BUT HE AND HIS ALLIES ARE NOW VULNERABLE TO BLACKMAIL FROM ANY MINOR LEAGUE DICTATOR WITH MISSILES OR FANATICS TO RATTLE AND A BURNING DESIRE TO FLOUT THE WESTERN POWERS A FEW MORE BOSNIAS AND POLITICAL LIFE COULD GET VERY HARD FOR THE POLITICAL LEADERS OF THE WEST MOST OF WHOM ARE POLITICALLY UNDERCAPITALIZED AT THE MOMENT SO WHAT IS THERE TO DO THERE IS ONLY ONE THING STOP PRETENDING TO BE A NONCOMBATANT WHICH IS A SILLY POSE AND START ACTING LIKE A COMBATANT IT SHOULD BE CLEAR BY NOW THAT SERBIA THE ONE WHOSE CAPITAL IS BELGRADE IS THE PROBLEM SO START DEALING WITH SERBIA AS AN ENEMY RATHER THAN AS A PARTY TO THIS WAR WITH A MORAL STANDING EQUAL TO THAT OF THE BOSNIAN GOVERNMENT IF SERBIA HADN'T FORFEITED ITS OWN CLAIMS TO CONSIDERATION LONG AGO WITH ITS ETHNIC CLEANSING IT CERTAINLY HAS DONE SO NOW WITH ITS RAPE OF GORAZDE THE IDEA THAT THE BOSNIAN SERBS WERE SOME KIND OF INDIGENOUS FORCE OPERATING INDEPENDENTLY OF BELGRADE SHOULD HAVE BEEN DISPELLED WHEN IT BECAME EVIDENT THAT THIS WAS AN ARMY FIGHTING WITH SERBIAN SUPPLIED TANKS AND HEAVY ARTILLERY WE HAVE TO WONDER IF MR CLINTON IS READY TO STEP UP TO A DIFFICULT FOREIGN POLICY CHALLENGE THAT DEMANDS MORE THAN JUST RHETORIC IT IS CONCEIVABLE THAT HE IS NOT THAT IS IF THIS ADMINISTRATION DOES SOMETHING THIS WEEK WILL IT BE ABLE TO DO SOMETHING COHERENT OR CONSISTENT NEXT WEEK OR A MONTH FROM NOW THAT CAUTIONARY THOUGHT HOWEVER MUST STAND UP TO A MORE FUNDAMENTAL REALITY SOMEONE HAS TO LEAD OR THE WESTERN ALLIANCE WILL CONTINUE IN BOSNIA AND IN BOSNIAS YET TO COME TO BE DISORGANIZED AND INEFFECTUAL IF IT ISN'T TO BE THE PRESIDENT OF THE UNITED STATES THEN WHO EXACTLY IS THERE SEE RELATED LETTER LETTERS TO THE EDITOR LET'S CALL THE VILLAINS BY THEIR REAL NAME WSJ APRIL 28 1994 9404190106 YY94 MM04 9404280054 940428 BUSINESS BRIEF FORD MOTOR CO OF CANADA EXPANSION PLANS ANNOUNCED FOR TRUCK ASSEMBLY PLANT FORD MOTOR CO OF CANADA SAID IT WILL SPEND 400 MILLION CANADIAN DOLLARS US291 MILLION TO EXPAND OPERATIONS AT ITS TRUCK ASSEMBLY PLANT IN OAKVILLE ONTARIO THE EXPANSION SCHEDULED FOR COMPLETION IN EARLY 1996 WILL REPLACE THE PLANT'S PAINT OPERATION AND ALLOW INCREASED PRODUCTION CAPACITY ALTHOUGH NO PRODUCTION INCREASES ARE CURRENTLY PLANNED A FORD SPOKESMAN SAID THE EXPANSION WILL ALLOW THE OAKVILLE PLANT TO PRODUCE 45 UNITS PER HOUR UP FROM THE CURRENT 38 UNITS PER HOUR THE PLANT CURRENTLY PRODUCES FORD FSERIES TRUCKS AND OPERATES ON ONE SHIFT AN ADJACENT PLANT AT OAKVILLE PRODUCES THE WINDSTAR MINIVAN 9404280053 940414 THE MEDIA'S RACE TABOO BY WILLIAM MCGOWAN EAST NEW YORK BROOKLYN IT JUST MIGHT BE THAT ONLY THE DEAD KNOW BROOKLYN BUT HERE ON THE DRUGRAVAGED STREETS OF EAST NEW YORK IT IS THE WALKING DEAD WHO SEEM TO RULE THE ROOST ON A BLUSTERY MIDMARCH DAY THE SCENE IS A HELLISH TABLEAU OF URBAN DISINTEGRATION SKELETAL STREETWALKERS SKULKING ADDICTS AND TENSE TEENAGE CRACK DEALERS SHOOTING MADDOG LOOKS AT RIVALS DOWN THE SIDEWALK SLIGHTLY BUILT WITH WIRERIMMED GLASSES AND A MINISTER'S DEMEANOR EUGENE RICHARDS IS AN UNLIKELY FIGURE AGAINST SUCH A GRIM BACKDROP YET MR RICHARDS HAS BECOME INTIMATE WITH THE DEPRAVITY OF THE DRUG WORLD IN EAST NEW YORK ONE OF SEVERAL NEIGHBORHOODS HE PHOTOGRAPHED FOR COCAINE TRUE COCAINE BLUE APERTURE HIS RECENTLY PUBLISHED ACCOUNT OF HARDCORE DRUG ADDICTION IN AMERICA'S INNER CITIES MR RICHARDS PUTS HIS CONSIDERABLE ARTISTIC TALENTS IN THE SERVICE OF SOCIAL ACTIVISM AND HAS SPENT 20 YEARS DOCUMENTING THE LIVES OF THE AMERICAN UNDERCLASS BUT INSTEAD OF BEING CELEBRATED FOR ITS BOLDNESS THE SEARING IMAGERY OF COCAINE TRUE COCAINE BLUE HAS EMBROILED MR RICHARDS IN AN UGLY CONTROVERSY CRIMPING THE DEBATE ABOUT DRUGS AND POVERTY HE THOUGHT THE BOOK MIGHT TRIGGER AND PROMPTING HIM TO BEMOAN THE PROBLEM OF POLITICAL CORRECTNESS IN THE MEDIA TODAY IF ONE PICTURE IS WORTH A THOUSAND WORDS THE CONTROVERSY OVER MR RICHARDS'S PICTURE BOOK SPEAKS VOLUMES ABOUT THE MEDIA'S INCREASING DIFFICULTIES IN DEALING WITH TOUCHY SOCIAL ISSUES PARTICULARLY THOSE WITH RACIAL SUBTEXTS ALTHOUGH MR RICHARDS SET OUT TO PROBE THE REALITIES OF INNERCITY CRACK ADDICTION AND WHAT HE ASSERTS IS THE RACIAL AND SOCIAL INJUSTICE UNDERLYING THEM THE FACT THAT HE DOCUMENTED THIS AS A DISPROPORTIONATELY BLACK AND HISPANIC PROBLEM HAS BROUGHT THE RACIAL CENSORS DOWN ON HIM COCAINE TRUE COCAINE BLUE IS A COLLECTION OF ABOUT 100 IMAGES GLEANED FROM THE FOUR YEARS MR RICHARDS SPENT IN THREE CRACKEDPLAGUED NEIGHBORHOODS EAST NEW YORK AND RED HOOK IN BROOKLYN AND NORTH PHILADELPHIA ALONG WITH THE PHOTOS COMES A TEXT MADE UP OF EQUALLY GRIPPING JOURNAL ENTRIES AND TAPED TRANSCRIPTIONS OF INTERVIEWS MR RICHARDS CONDUCTED WITH ADDICTS THEIR FAMILIES AND DRUG DEALERS TOGETHER THE WORDS AND THE IMAGES EVOKE A DANTEESQUE WORLD OF PSYCHOVIOLENCE MISOGYNY AND ABJECTION IN DECEMBER SEVEN PICTURES FROM THE BOOK WERE PRINTED IN THE NEW YORK TIMES MAGAZINE ALTHOUGH THE TIMES EDITORS SELECTED PHOTOS THAT SHOWED WHITES HISPANICS AND BLACKS WITH RACIAL BALANCE IN MIND A FUROR ERUPTED IN THE BLACK COMMUNITY THE LIGHTNING ROD WAS A SHOT OF A BLACK WOMAN WITH A BABY STRAPPED TO HER BACK ON HER KNEES PERFORMING WHAT LOOKS LIKE ORAL SEX ON A JOHN IN A CRACK HOUSE ON THE WALL BEHIND THEM ARE PICTURES OF MALCOLM X AND MARTIN LUTHER KING WITHIN A WEEK A GROUP OF PROMINENT BLACK CLERGYMEN AND POLITICIANS SIGNED A LETTER OF PROTEST TO THE TIMES AN EDITORIAL IN THE AMSTERDAM NEWS WHICH SERVES NEW YORK'S BLACK COMMUNITY DECLARED THAT THE PICTURES WERE THE MOST DEMEANING AND DEGRADING IMAGERY WE HAVE EVER SEEN IN A REPUTABLE NEWS ORGAN ANYWHERE IN THE WORLD A GROUP CALLED THE COMMITTEE TO ELIMINATE MEDIA OFFENSIVE TO AFRICAN PEOPLE OR CEMOTAP MOUNTED A DEMONSTRATION OUTSIDE THE TIMES AND LOCAL BLACK ACTIVIST AL SHARPTON THREATENED A BOYCOTT OF THE PAPER IF TIMES EXECUTIVES DID NOT MEET WITH ITS MEMBERS ACCORDING TO A CEMOTAP SPOKESWOMAN BETTY DOPSON MR RICHARDS WAS A DEGENERATE A LOSER AND PARASITE WHO LIVES OFF THE MISERY OF UNFORTUNATE PEOPLE PARTICULARLY BLACKS MS DOPSON ALSO CLAIMED THAT MR RICHARDS HAD STAGED THE IMAGE OF THE WOMAN WITH THE BABY AND THE JOHN IN THE CRACK HOUSE AND OFFERED A 1000 REWARD FOR ANYONE WITH INFORMATION TO PROVE IT MS DOPSON SAID IF SHE HAD THE CONSCIOUSNESS TO HAVE THE PHOTOS OF BLACK MEN LIKE MALCOLM AND MARTIN ON HER WALLS SHE WOULD NEVER DEGRADE HERSELF AND HER CHILD LIKE THAT THE PRESSURE WAS UNSUCCESSFUL AT THE TIMES BUT IT WAS EFFECTIVE IN BULLYING THE INTERNATIONAL CENTER OF PHOTOGRAPHY WHICH POSTPONED A SHOW OF MR RICHARDS'S WORK AFTER CEMOTAP DEMANDED THE SHOW BE CANCELED THE FUROR COST MR RICHARDS A JUICY FEE TOO FOR PHOTOS ORIGINALLY SCHEDULED TO RUN IN VIBE MAGAZINE THE TIME WARNER HIPHOP PUBLICATION OFTEN REFERRED TO AS THE BLACK ROLLING STONE VIBE HAD PURSUED MR RICHARDS AGGRESSIVELY AND HAD ARRANGED A DEAL BUT CANCELED IT SHORTLY AFTER THE TIMES EXCERPT ACCORDING TO JONATHAN VAN METER VIBE'S EDITOR IN CHIEF MR RICHARDS AND HIS AGENT AT MAGNUM LEFT THE IMPRESSION WITH THE MAGAZINE THAT IT HAD AN EXCLUSIVE ON THE PHOTOS IT HAD SELECTED MR RICHARDS HOWEVER SAYS THAT THE VIBE EDITORS KNEW EXACTLY WHAT WAS IN THE WORKS AT THE TIMES AND MADE THE DECISION NOT TO PUBLISH THE PHOTOS BECAUSE THEY DIDN'T WANT ANY TROUBLE THE CONTROVERSY TOOK ITS MOST UPSETTING TURN FOR MR RICHARDS WHEN THE NEW YORK TIMES BOOK REVIEW RAN ITS REVIEW OF COCAINE TRUE ON FEB 5 WRITTEN BY TIMES EDITORIAL WRITER BRENT STAPLES RECENTLY DUBBED THE POLITICAL CORRECTOR BY THE NEW REPUBLIC THE REVIEW MANAGED TO PRAISE MR RICHARDS'S OEUVRE AND DISPARAGE HIS MOST RECENT BOOK AT THE SAME TIME DRUGS WERE INDEED A SCOURGE IN THE AFRICANAMERICAN COMMUNITY MR STAPLES ADMITTED YET HE STILL WANTED TO KNOW WHY ARE NEARLY ALL THE PEOPLE IN THESE PHOTOGRAPHS BLACK ASSERTING THAT THE VAST MAJORITY OF ADDICTS IN AMERICA ARE WHITE AND THAT THE WHITE ASPECT OF DRUG ADDICTION IS CONSISTENTLY INVISIBLE IN THE MEDIA MR STAPLES INSISTED HE WAS NOT ASKING FOR EQUAL OPPORTUNITY REPRESENTATION OF DRUG ABUSE BUT HE DID ASK COULDN'T MR RICHARDS HAVE FOUND A SETTING WHERE MOST OR AT LEAST HALF THE DRUG ADDICTS ARE WHITE MR STAPLES ALSO SUGGESTED THAT MR RICHARDS HAD STAGED THE PROSTITUTE AND JOHN PHOTO FORTUITOUSLY OR BY PLAN HE WROTE THE SCENE IS BRACKETED BY PICTURES OF MALCOLM AND MARTIN LUTHER KING JR ON THE WALL BEHIND THEM WHEN ASKED IF HE HAD ANY EVIDENCE TO SUPPORT THIS SERIOUS CHARGE A BREACH OF ETHICS THAT COULD COST A PHOTOGRAPHER ON HIS OWN PAPER HIS JOB MR STAPLES HUFFED YOU MEAN DID I DO ANY REPORTING GO OUT THERE AND TALK TO PEOPLE NO I DID NOT MR RICHARDS SAYS HE HAD INITIALLY WORRIED THAT HE MIGHT HAVE BEEN DESCRIBING THE PROBLEM OF INNERCITY ADDICTION OUT OF CONTEXT BUT AFTER RESEARCHING THE DEMOGRAPHICS HE SAYS HE REALIZED HE WAS RIGHT ON THE BUTTON THIS IS NOT A LOOK AT MINORITY AMERICA HE SAYS THE BOOK'S FOCUS IS PEOPLE HELD BY DRUGS A DISPROPORTIONATE NUMBER OF WHOM HAPPEN TO BE BLACK OR HISPANIC CONSIDER THE COLD HARD STATISTICS MR RICHARDS WROTE IN A REBUTTAL TO MR STAPLES PUBLISHED IN THE NEW YORK TIMES BOOK REVIEW OF MARCH 6 COMPARED WITH THE GENERAL POPULATION AND WITH INFREQUENT COCAINE USERS FREQUENT COCAINE USERS WERE MORE LIKELY TO BE BLACK OR HISPANIC AND MORE LIKELY TO BE LIVING IN LARGE METRO AREAS MR RICHARDS POINTED OUT CITING A STUDY PUBLISHED IN THE AMERICAN JOURNAL OF PUBLIC HEALTH HE ALSO CITED A STUDY CONDUCTED BY THE NATIONAL INSTITUTE OF DRUG ABUSE WHICH SAID THAT WHILE BLACKS AND HISPANICS ARE 21 OF THE US POPULATION THEY REPRESENT 46 OF AIDS CASES A FUNCTION OF THEIR DISPROPORTIONATE INVOLVEMENT IN IV DRUG ADDICTION REFLECTING ON HIS ORDEAL MR RICHARDS DESCRIBES THE LESSONS HE HAS LEARNED DURING MEETINGS WITH CEMOTAP REPRESENTATIVES AT THE INTERNATIONAL CENTER OF PHOTOGRAPHY HE SAYS HE REALIZED THAT THE OBJECTIONS TO HIS WORK HAD LESS TO DO WITH RACE THAN WITH CLASS ALTHOUGH HE IS WELL AWARE OF THE WAY IMAGES LIKE HIS CAN BE USED TO TAR ALL MINORITIES HE SAW THAT THE SPOKESWOMAN FROM CEMOTAP SIMPLY WANTED TO DISSOCIATE HERSELF FROM POOR PEOPLE HE'S LEFT TO WONDER WHETHER THE STATUS ANXIETIES OF SOME MIDDLE AND PROFESSIONALCLASS BLACKS MIGHT BE DISCOURAGING FRANK DISCUSSION OF UNDERCLASS PROBLEMS PERHAPS MORE UPSETTING IS WHAT THE EXPERIENCE HAS TAUGHT HIM ABOUT HIS OWN PROFESSION AND THE REGRETTABLE CLIMATE OF CORRECTNESS THAT NOW PERMEATES IT AS WE CRUISE OUT OF EAST NEW YORK MR RICHARDS WORRIES THAT ISSUES THAT ARE RACIALLY OR SOCIALLY PROBLEMATIC WILL GET BURIED THIS LEAVES HIM ANXIOUS ABOUT HIS ROLE AND THAT OF THE TRADITION OF SOCIALLY CONCERNED PHOTOGRAPHY HE REPRESENTS THERE ARE CERTAIN SUBJECTS NOW THAT YOU JUST WON'T BE ABLE TO DEAL WITH HE SAYS IT MEANS THAT PEOPLE WILL BE VERY RELUCTANT TO TOUCH ANY KIND OF SENSITIVE RACIAL STORY IT'S ALL SO DEPRESSING HOW THEY LET THESE SKEWERING MINOR ISSUES GET IN THE WAY OF SEEING THE REAL PROBLEM AN EDITOR MAY SAY OK GO OUT AND LOOK AT THE DRUG WAR FOR US BUT STAY AWAY FROM THIS AND THIS AND THIS' IT'S PROBABLY THE MOST TERRIBLE FORM OF CENSORSHIP WHEN IT COMES DOWN TO THE QUESTION OF POLITICAL CORRECTNESS MR RICHARDS ADMITS I'M FINDING MYSELF CURIOUSLY ALIGNED WITH THE CONSERVATIVES MR MCGOWAN IS A WRITER IN NEW YORK SEE RELATED LETTER LETTERS TO THE EDITOR CRACK DEGRADES THEN DESTROYS USERS WSJ APRIL 28 1994 9404140063 YY94 MM04 9404280052 940408 BLACKS AND CRIME BY RANDALL KENNEDY LIKE MANY SOCIAL ILLS CRIME AFFLICTS AFRICANAMERICANS WITH A SPECIAL VENGEANCE AFRICANAMERICANS ARE CONSIDERABLY MORE LIKELY THAN WHITES TO BE RAPED ROBBED ASSAULTED AND MURDERED MANY OF THOSE WHO SEEK TO CHAMPION THE INTERESTS OF AFRICANAMERICANS HOWEVER WRONGLY RETARD EFFORTS TO CONTROL CRIMINALITY THEY CHARGE THAT THE CRIMINAL JUSTICE SYSTEM IS AS IT HAS BEEN HISTORICALLY AN INSTRUMENT OF RACIST OPPRESSION IN ALL TOO MANY INSTANCES THEIR ALLEGATIONS ARE OVERBLOWN AND COUNTERPRODUCTIVE BECAUSE THEY EXAGGERATE RACIAL PREJUDICE IN THE CRIMINAL JUSTICE SYSTEM THEY DETRACT ATTENTION FROM OTHER PROBLEMS OF LAW ENFORCEMENT THAT WARRANT MORE CONSIDERATION THOSE WHO PROPOUND ONESIDED RACIAL CRITIQUES OF THE CRIMINAL JUSTICE SYSTEM MAINTAIN IT IS INFECTED WITH A PERVASIVE SYSTEMIC RACIAL BIAS THAT TARGETS BLACK MALES DEPENDING ON THEIR AGE THEY ALLUDE TO BITTER MEMORIES OF THE SCOTTSBORO BOYS OR RODNEY KING THEY PORTRAY POLICE AS COLONIAL FORCES OF OCCUPATION AND PRISONS AS CENTERS OF RACIST OPPRESSION THOSE WHO ADOPT THIS STANCE FREQUENTLY PROCEED AS IF THERE EXISTED NO DRAMATIC DISCONTINUITIES IN AMERICAN HISTORY AS IF THERE EXISTED LITTLE DIFFERENCE BETWEEN THE PRACTICES THAT CHARACTERIZED THE ERAS OF SLAVERY AND DE JURE SEGREGATION AND THOSE PREVALENT TODAY AS IF AFRICANAMERICANS HAD COMPLETELY FAILED IN THEIR EFFORTS TO REFORM AND PARTICIPATE IN GOVERNMENT POLICY AND AS IF BLACK LEGISLATORS MAYORS AND CHIEFS OF POLICE DID NOT EXIST IN FACT THE PRINCIPAL PROBLEM FACING AFRICANAMERICANS IN THE CONTEXT OF CRIMINAL JUSTICE TODAY IS NOT OVERENFORCEMENT BUT UNDERENFORCEMENT OF THE LAWS THE MOST LETHAL DANGER FACING AFRICANAMERICANS IN THEIR DAILY LIVES IS NOT WHITE RACIST OFFICIALS OF THE STATE BUT PRIVATE VIOLENT CRIMINALS TYPICALLY BLACK WHO ATTACK THOSE MOST VULNERABLE TO THEM WITHOUT REGARD TO RACIAL IDENTITY ACKNOWLEDGMENT OF THESE REALITIES HAS GIVEN RISE AMONG BLACKS AND OTHERS TO AN ALTERNATIVE TO ANACHRONISTIC RACIAL CRITIQUES THIS ALTERNATIVE PERSPECTIVE VIEWS CRIMINAL LAW ENFORCEMENT AS A PUBLIC GOOD IDENTIFIES PRIMARILY WITH THE ACTUAL AND POTENTIAL VICTIMS OF CRIME AND EMBRACES POLICIES THAT OFFER GREATER PHYSICAL SECURITY TO MINORITY COMMUNITIES EVEN IF THAT MEANS CEDING GREATER POWERS TO LAW ENFORCEMENT AGENCIES AND THUS CONCOMITANTLY NARROWING THE FORMAL LIBERTIES THAT INDIVIDUALS CURRENTLY ENJOY UNFORTUNATELY EFFORTS TO ADDRESS THE DANGER CRIME POSES TO MINORITY COMMUNITIES ARE CONFUSED AND HOBBLED BY A REFLEXIVE SELFDEFEATING RESORT BY CRITICS TO CHARGES OF RACISM THIS OFTEN HAPPENS WHEN A POLICY RACIALLY NEUTRAL ON ITS FACE GIVES RISE TO RACIAL DISPARITIES WHEN APPLIED TAKE DRUG POLICY SOME CONDEMN AS GENOCIDE THE PUNITIVE WAR ON DRUGS BECAUSE A DISPROPORTIONATE NUMBER OF THOSE SUBJECTED TO ARREST PROSECUTION AND INCARCERATION FOR DRUG USE ARE BLACK AT THE SAME TIME OTHERS INCLUDING REP CHARLES RANGEL D NY AND LEE BROWN DIRECTOR OF THE OFFICE OF NATIONAL DRUG CONTROL POLICY CONDEMN PROPOSALS FOR DECRIMINALIZING DRUG USE ON THE GROUNDS THAT SUCH POLICIES WOULD AMOUNT TO GENOCIDE BECAUSE RACIAL MINORITIES WOULD CONSTITUTE A DISPROPORTIONATE NUMBER OF THOSE ALLOWED TO PURSUE DRUG HABITS WITHOUT DETERRENT INTERVENTION THESE CHARGES AND COUNTERCHARGES OF GENOCIDE ARE RIDICULOUS OVERHEATED CLAIMS OF RACISM ALSO AFFECT THE JUDICIARY CONSIDER FOR EXAMPLE THE 1991 MINNESOTA SUPREME COURT CASE STATE V RUSSELL IN RUSSELL FIVE AFRICANAMERICAN MEN WERE PROSECUTED FOR POSSESSING CRACK COCAINE AND SENTENCED UNDER A STATUTE THAT PENALIZED POSSESSION OF CRACK MORE HARSHLY THAN IT PENALIZED THE POSSESSION OF SIMILAR AMOUNTS OF POWDERED COCAINE POSSESSION OF THREE GRAMS OF CRACK CARRIED A PENALTY OF 20 YEARS IN PRISON WHILE POSSESSION OF AN EQUAL AMOUNT OF POWDERED COCAINE CARRIED A MAXIMUM PENALTY OF ONLY FIVE YEARS IN PRISON MR RUSSELL AND HIS CODEFENDANTS ARGUED THAT NO RATIONAL BASIS JUSTIFIED THE DIFFERENCE IN PUNISHMENT MOREOVER THEY ARGUED THAT THIS DIFFERENCE WAS RACIALLY DISCRIMINATORY BECAUSE IT ADVERSELY AFFECTED WITH INSUFFICIENT JUSTIFICATION BLACK COCAINE USERS RELATIVE TO THEIR WHITE COUNTERPARTS THEY BASED THIS ARGUMENT ON THE FACT THAT GREATER NUMBERS OF AFRICANAMERICANS USE CRACK OVER POWDER STATISTICS REFERRED TO BY THE STATE SUPREME COURT INDICATED THAT IN MINNESOTA IN 1988 966 OF ALL PERSONS CHARGED WITH POSSESSION OF CRACK WERE BLACK WHILE 796 OF ALL PERSONS CHARGED WITH POSSESSION OF POWDERED COCAINE WERE WHITE THE TRIAL COURT INVALIDATED MINNESOTA'S SENTENCING SCHEME AND THE MINNESOTA SUPREME COURT AFFIRMED THAT DECISION PRINCIPALLY BECAUSE OF THE RACIAL DISPARITIES NOTED ABOVE IN THE PRINCIPAL RUSSELL OPINION JUSTICE ROSALIE E WAHL WROTE THE CORRELATION BETWEEN RACE AND THE USE OF CRACK OR POWDER AND THE GROSS DISPARITY IN RESULTING PUNISHMENT CRIES OUT FOR CLOSER SCRUTINY OF THE CHALLENGED LAWS THE STATE JUSTIFIED ITS HEAVIER PUNISHMENT OF CRACK POSSESSION ON THREE GROUNDS FIRST CRACK AND POWDER HAVE DIFFERENT SOCIOLOGIES OF USE AND DISTRIBUTION DEALING CAN BE INFERRED FROM THE POSSESSION OF SMALLER AMOUNTS OF CRACK SECOND CRACK HAS A MORE POTENT PHYSIOLOGICAL IMPACT THIRD MORE VIOLENCE IS ASSOCIATED WITH THE DISTRIBUTION AND USE OF CRACK THE MINNESOTA SUPREME COURT REJECTED THESE JUSTIFICATIONS AND CONCLUDED THAT THEY FAILED TO OFFER EVEN A RATIONAL BASIS FOR PUNISHING POSSESSION OF CRACK MORE HARSHLY THAN POSSESSION OF POWDERED COCAINE THE COURT DISMISSED TESTIMONY ABOUT THE AMOUNTS OF DRUGS THAT SIGNALED DEALING AS OPPOSED TO MERE POSSESSION AS PURELY ANECDOTAL THE COURT ALSO NOTED THAT ALTHOUGH CRACK IS SMOKED AND POWDER IS INHALED UNDER CERTAIN CIRCUMSTANCES THE EFFECT CAN BE THE SAME THE MINNESOTA COURT'S POSTURE IS THAT OF A COURT SCRUTINIZING A STATE POLICY WITH SUCH INTENSE HOSTILITY THAT ITS INVALIDATION IS VIRTUALLY PREORDAINED IN PURSUING THIS COURSE THE RUSSELL COURT IGNORED THE REALITIES THAT HAVE MADE THE INVENTION OF CRACK A WATERSHED IN THE HISTORY OF ILLICIT DRUGS ALTHOUGH THE COURT ASSERTED THAT NOTHING SUBSTANTIAL DIFFERENTIATES CRACK FROM POWDERED COCAINE THE RECORD BEFORE IT INDICATED OTHERWISE STUDENTS OF THE DRUG TRADE NOTE WITH AWE THE TECHNOLOGICAL AND MARKETING ADVANCES THAT DISTINGUISH CRACK DIFFERENCES IN PRICING FOR INSTANCE THAT ENABLED CRACK TO DEMOCRATIZE COCAINE ABUSE AND TRANSFORM THE ILLICIT DRUG TRADE IN THE 1980S IN THE WORDS OF MARK AR KLEIMAN CRACK HAPPENED THE COURT'S HOSTILITY TO THE MINNESOTA SENTENCING STATUTE STEMMED FROM ITS PERCEPTION THAT IN JUSTICE WAHL'S WORDS THE LAW APPEARS TO IMPOSE A SUBSTANTIALLY DISPROPORTIONATE BURDEN ON BLACKS THE VERY CLASS OF PERSONS WHOSE HISTORY OF OPPRESSION INSPIRED THE PRINCIPLES OF EQUAL PROTECTION THE COURT IS MISGUIDED IN TWO IMPORTANT RESPECTS FIRST JUSTICE WAHL'S PORTRAYAL OF MINNESOTA'S SENTENCING STATUTE AS A BURDEN TO BLACKS AS A CLASS IS SIMPLISTIC ASSUMING THAT ONE BELIEVES IN CRIMINALIZING THE DISTRIBUTION OF CRACK COCAINE PUNISHING THIS CONDUCT IS A PUBLIC GOOD IT IS A BURDEN ON THOSE WHO ARE CONVICTED OF ENGAGING IN THIS CONDUCT BUT IT IS PRESUMABLY A BENEFIT FOR THE GREAT MASS OF LAWABIDING PEOPLE MANY HAVE OBSERVED THAT ALL TOO FREQUENTLY POLITICIANS NEWSPAPER EDITORS AND POLICE OFFICIALS EXPRESS CONCERN ABOUT CRIME ONLY IF THEY PERCEIVE THAT IT INFLICTS INJURY UPON WHITES THIS OBSERVATION SUGGESTS A VERY DIFFERENT APPROACH TO THE CRACK/POWDER DISTINCTION FROM THAT TAKEN BY THE MINNESOTA SUPREME COURT IT SUGGESTS THAT WE OUGHT TO COMMEND RATHER THAN CONDEMN THE LEGISLATURE'S DISTINCTION BETWEEN CRACK AND POWDERED COCAINE IF IT IS TRUE THAT BLACKS AS A CLASS ARE DISPROPORTIONATELY VICTIMIZED BY THE CONDUCT PUNISHED BY THE STATUTE AT ISSUE THEN IT FOLLOWS THAT BLACKS AS A CLASS MAY BE HELPED BY MEASURES REASONABLY THOUGHT TO DISCOURAGE SUCH CONDUCT IN ADDITION THE MINNESOTA SUPREME COURT CONDEMNED THE STATUTE AS IMPOSING AN UNJUSTIFIABLE RACIALLY DISCRIMINATORY BURDEN YET TO THE EXTENT THAT THE HEAVIER PUNISHMENT FOR POSSESSION OF CRACK FALLS UPON BLACKS IT FALLS NOT UPON BLACKS AS A CLASS BUT RATHER UPON A SUBSET OF THE BLACK POPULATION THOSE IN VIOLATION OF THE LAW WHO ARE APPREHENDED OF COURSE LAWS THAT ARE APPARENTLY RACENEUTRAL CAN HURT BLACKS AS A CLASS FOR EXAMPLE ONE OF THE METHODS ONCE USED BY ALABAMA TO MINIMIZE THE ELECTORAL POWER OF BLACKS AS A CLASS WAS A STATE CONSTITUTIONAL PROVISION SILENT ON ITS FACE WITH RESPECT TO RACE THAT PERMANENTLY DISENFRANCHISED THOSE CONVICTED OF COMMITTING CERTAIN CRIMES IN THAT INSTANCE THE DELEGATES TO THE STATE CONSTITUTIONAL CONVENTION OPENLY ADMITTED THAT THE CRIMINAL LAW WAS PURPOSEFULLY BEING USED AS A WEAPON TO DISENFRANCHISE BLACKS IN RUSSELL BY CONTRAST THE COURT MADE NO FINDING THAT THE PURPOSE OF THE LEGISLATURE'S HARSHER PUNISHMENT FOR POSSESSION OF CRACK WAS TO OPPRESS BLACKS AS A CLASS THE COURT INVALIDATED THE LEGISLATURE'S SENTENCING SCHEME BECAUSE EVEN IN THE ABSENCE OF DISCRIMINATORY PURPOSE THE LAW IMPOSED WHAT THE COURT DEEMED AN UNDULY BURDENSOME EFFECT ON BLACKS UNFORTUNATELY INCREASING NUMBERS OF JURISTS AND COMMENTATORS FAVORABLY COMPARE THE APPROACH ADOPTED BY THE MINNESOTA SUPREME COURT TO ANOTHER APPROACH THAT HAS BEEN ARTICULATED BY THE US SUPREME COURT UNDER FEDERAL CONSTITUTIONAL DOCTRINE A LAW CAN BE INVALIDATED AS RACIALLY DISCRIMINATORY ONLY IF IT IS SHOWN TO HAVE BEEN MOTIVATED BY A PURPOSE TO DISCRIMINATE THE LANDMARK CASE THAT ESTABLISHED THIS DOCTRINE IS WASHINGTON V DAVIS 1976 THAT CASE INVOLVED AN EQUAL PROTECTION CHALLENGE UNDER THE FOURTEENTH AMENDMENT TO A STANDARDIZED TEST ADMINISTERED TO ALL APPLICANTS TO THE DISTRICT OF COLUMBIA POLICE DEPARTMENT A GROUP OF BLACK CANDIDATES REJECTED ON THE BASIS OF THEIR TEST SCORES CLAIMED THAT THE TEST DISCRIMINATED AGAINST BLACKS IN VIOLATION OF THE EQUAL PROTECTION CLAUSE BECAUSE THE TEST EXCLUDED UNJUSTIFIABLY FOUR TIMES AS MANY BLACK CANDIDATES AS WHITE THE COURT MAINTAINED THAT THE RACIALLY DISPARATE RESULTS WERE INSUFFICIENT IN THEMSELVES TO SIGNAL DISCRIMINATORY PURPOSE THE COURT REFINED THIS DOCTRINE IN LATER CASES IT RULED THAT DISCRIMINATORY PURPOSE IMPLIES THAT THE DECISIONMAKER SELECTED OR REAFFIRMED A PARTICULAR COURSE OF ACTION AT LEAST IN PART BECAUSE OF' NOT MERELY IN SPITE OF' ITS ADVERSE EFFECTS UPON AN IDENTIFIABLE GROUP THE COURT ALSO MADE IT CLEAR HOWEVER THAT A PERSON NEED NOT PROVE THAT A LAW WAS MOTIVATED SOLELY OR EVEN PRIMARILY BY RACIALLY DISCRIMINATORY PURPOSES TO INVALIDATE A LAW ONE NEED PROVE ONLY THAT A DISCRIMINATORY PURPOSE WAS AMONG THE MOTIVATING FACTORS COURTS HAVE UNIFORMLY REJECTED CHALLENGES UNDER THE EQUAL PROTECTION CLAUSE TO DIFFERENTIAL PUNISHMENT FOR POSSESSION OF CRACK COCAINE AS OPPOSED TO POWDERED COCAINE EVEN IN THE CASE OF A FEDERAL SENTENCING STATUTE UNDER WHICH THE DIFFERENCE IN PUNISHMENT IS FAR MORE EXTREME THAN IN RUSSELL FOR PURPOSES OF SENTENCING UNDER FEDERAL LAW ONE GRAM OF CRACK COCAINE IS EQUIVALENT TO ONE HUNDRED GRAMS OF POWDERED COCAINE TO SOME INCLUDING AN INCREASING NUMBER OF JUDGES AND LEGAL SCHOLARS THE FACT THAT THIS CRACK/POWDER DISTINCTION HAS NOT BEEN STRUCK DOWN UNDER THE EQUAL PROTECTION CLAUSE REVEALS THAT THE SUPREME COURT IS MISINTERPRETING IT YET THE CIRCUMSTANCES SURROUNDING RUSSELL SUGGEST A DEFENSE OF DAVIS THAT HAS RECEIVED INSUFFICIENT ATTENTION CHARACTERISTICALLY IN THE ABSENCE OF DISCRIMINATORY PURPOSE A FACIALLY RACENEUTRAL POLICY WILL ADVANTAGE SOME AFRICANAMERICANS AND DISADVANTAGE OTHERS THIS SHOULD PRECLUDE THE CONCLUSION THAT SUCH POLICY DISCRIMINATES AGAINST AFRICANAMERICANS GENERALLY THIS POINT IS RELEVANT TO A WIDE RANGE OF CONTROVERSIES UPON CLOSER EXAMINATION IT BECOMES CLEAR THAT WHAT IS REALLY AT STAKE IN MANY CONTROVERSIES WITH RACIAL OVERTONES IS NOT SIMPLY AN INTERRACIAL DISPUTE BUT AN ACTUAL OR INCIPIENT INTRARACIAL CONFLICT ALTHOUGH BLACKS SUBJECT TO DRACONIAN PUNISHMENT FOR CRACK POSSESSION ARE BURDENED BY IT THEIR BLACK LAWABIDING NEIGHBORS ARE PRESUMABLY HELPED BY IT INSOFAR AS THE STATUTE DETERS DRUG TRAFFIC ALTHOUGH BLACK YOUNGSTERS WHO WISH TO STAY OUT LATE ARE BURDENED BY A CURFEW BLACKS WHO FEEL MORE SECURE BECAUSE OF THE CURFEW ARE BENEFITED ALTHOUGH BLACK MEMBERS OF VIOLENT GANGS ARE BURDENED BY POLICE CRACKDOWNS ON SUCH GANGS BLACKS TERRORIZED BY THESE GANGS ARE AIDED THAT TOO LITTLE ATTENTION HAS BEEN GIVEN TO THE COMPLEXITY OF BLACK COMMUNITIES AND TO THE VARIED AND OFTEN CONFLICTING WAYS IN WHICH GOVERNMENT POLICIES WILL AFFECT DIFFERENT SECTORS OF SUCH COMMUNITIES IS DEMONSTRATED BY COMMENTARY ON DAVIS ITSELF IT IS OFTEN PORTRAYED AS A DECISION THAT UNAMBIGUOUSLY PRIVILEGES WHITE INTERESTS OVER BLACK INTERESTS BUT WHAT IS ONE TO SAY TO THE BLACK CITIZEN OF THE DISTRICT OF COLUMBIA WHO BELIEVES THAT THE BENEFIT OF IMPROVING LOCAL POLICEFORCE CALIBER IS WORTH THE COSTS IMPOSED BY DEMANDING THE STANDARDIZED TEST AT ISSUE IN THE CASE INCLUDING THE COST OF DISQUALIFYING FOUR TIMES AS MANY BLACK AS WHITE APPLICANTS IF ONE SAYS THAT THE TEST DISCRIMINATES AGAINST BLACKS AS A CLASS THE CITIZEN CAN RESPOND WITH SUBSTANTIAL FORCE THAT ALTHOUGH THE SUBSET OF BLACKS EXCLUDED FROM EMPLOYMENT BY THE EXAMINATION IS BURDENED OTHER BLACKS FOR INSTANCE CONSUMERS OF POLICE SERVICES ARE HELPED BY BEING AFFORDED THE ASSISTANCE OF A MORE LITERATE WELLEDUCATED POLICE FORCE THIS CITIZEN CAN ALSO ARGUE THAT THE MOST APPROPRIATE FORUMS FOR DETERMINING POLICIES ARE LEGISLATURES SOME MIGHT OBJECT ON THE GROUNDS THAT THIS APPROACH WILL CONDEMN BLACKS TO THE REALM OF MAJORITARIAN ELECTORAL POLITICS IN WHICH THEY WILL TYPICALLY BE LOSERS YET OVER THE PAST QUARTER CENTURY WHEN CONDEMNED TO THE ELECTORAL ARENA BLACKS OR MORE ACCURATELY CERTAIN SECTORS OF THE BLACK POPULATION DEEMED TO BE ACTING ON BEHALF OF THE WHOLE HAVE SUCCEEDED IN OBTAINING THROUGH LEGISLATION POLITICAL GOODS THAT THE FEDERAL JUDICIARY HAD DECLINED TO GIVE THEM THROUGH FEDERAL CONSTITUTIONAL LITIGATION CONGRESS FOR EXAMPLE HAS GONE WHERE THE SUPREME COURT WOULDN'T AND ENACTED STATUTES EG THE 1982 AMENDMENTS TO THE VOTING RIGHTS ACT TO ADDRESS SOME ASSERTED INEQUITIES LEFT UNADDRESSED BY THE COURT'S INTERPRETATION OF THE EQUAL PROTECTION CLAUSE IT IS WORTH NOTING THAT TO AN INCREASING EXTENT ACROSS THE POLITICAL SPECTRUM AND WITHIN BLACK COMMUNITIES PRIORITY OF SYMPATHETIC IDENTIFICATION IS FLOWING TO VICTIMS AS OPPOSED TO PERPETRATORS OF CRIME SOMETIMES PEOPLE WITH THESE SENTIMENTS BECOME INHIBITED WHEN THEY CONFRONT THE PARADOX THAT INCREASING THE EXTENT AND SEVERITY OF CRIME CONTROL POLICY TO PROTECT LAWABIDING BLACKS WILL RESULT IN HIGHER RATES OF INCARCERATION AND HEAVIER PUNISHMENTS FOR BLACK PERPETRATORS AS MOST OF THOSE WHO COMMIT CRIMES AGAINST BLACKS ARE THEMSELVES BLACK PERHAPS HOWEVER THEY WILL COME TO ACCEPT THAT DISPARITIES LIKE THOSE IN RUSSELL MAY BE THE MARK NOT OF A WHITEDOMINATED STATE APPARATUS DISCRIMINATING AGAINST BLACKS BUT INSTEAD OF A STATE APPARATUS RESPONDING SENSIBLY TO THE DESIRES OF LAWABIDING PEOPLE THIS RESPONSE MAY BE WRONG PERHAPS DECRIMINALIZATION WOULD BE BETTER THAN CONTINUING THE WAR ON DRUGS BUT BEING WRONG IS DIFFERENT FROM BEING RACIST AND THE DIFFERENCE IS ONE THAT MATTERS GREATLY MR KENNEDY A PROFESSOR OF LAW AT HARVARD WROTE A LONGER VERSION OF THIS ARTICLE FOR THE APRIL ISSUE OF THE HARVARD LAW REVIEW SEE RELATED LETTER LETTERS TO THE EDITOR ONLY ONE WAY TO STOP GENOCIDE ON THE STREETS WSJ APRIL 28 1994 9404080095 YY94 MM04 9404280049 940428 WHO'S NEWS OGLEBAY NORTON CO OGLEBAY NORTON CO CLEVELAND MICHAEL F BIEHL 38 YEARS OLD WAS ELECTED TREASURER AND DIRECTOR OF FINANCE AND DAVID A SLEZAK 33 WAS NAMED SECRETARY AND DIRECTOR OF LEGAL AFFAIRS MR BIEHL SUCCEEDS RICHARD J KESSLER WHO REMAINS CHIEF FINANCIAL OFFICER MR BIEHL HAD BEEN CONTROLLER MR SLEZAK WHO WAS ASSISTANT SECRETARY SUCCEEDS DAVID A KUHN WHO IS RETIRING OGLEBAY IS A RAW MATERIALS AND GREAT LAKES MARINE TRANSPORTATION FIRM 9404280048 940428 CORK ONCE REVERED IS UNDER PRESSURE FROM SOME WINERIES THEY PLUG PLASTIC AS A STOPPER OF THE FUTURE BUT PURISTS JUST SNIFF AT THE VERY IDEA BY CARRIE DOLAN STAFF REPORTER OF THE WALL STREET JOURNAL KENWOOD CALIF IT'S ENOUGH TO MAKE SOME WINE LOVERS WHINE IN A TASTING ROOM SET AMONG ROWS OF SUNDRENCHED VINES WINEMAKER TOM MACKEY INSERTS A CORKSCREW INTO A BOTTLE OF ST FRANCIS WINERY GEWURTZTRAMINER HE TUGS A MOMENT AND EXTRACTS A CORK A PLASTIC CORK FORSAKING CENTURIESOLD TRADITION AND CORK SNIFFERS EVERYWHERE ST FRANCIS WINERY HAS TAKEN THE RADICAL STEP OF PULLING THE PLUG ON TRADITIONAL STOPPERS MOST OF WHICH COME FROM THE BARK OF CORK OAK TREES IN PORTUGAL IT NOW USES SYNTHETIC CORKS WHICH COME FROM A JARMAKING COMPANY IN NEW JERSEY IN CALIFORNIA'S IMAGECONSCIOUS WINE COUNTRY THIS IS AN ISSUE OF GREAT FERMENT ON ONE HAND ARE TRADITIONALISTS OUR CLIENTELE EXPECTS AND WILL CONTINUE TO EXPECT CORK SAYS A SPOKESMAN FOR OPUS ONE A JOINT VENTURE OF ROBERT MONDAVI WINERY AND FRANCE'S BARON PHILIPPE DE ROTHSCHILD INC OPUS ONE WINES SELL FOR ABOUT 65 A BOTTLE AND WHEN YOU BUY A ROLLS ROYCE YOU DON'T EXPECT TO FIND VINYL SEATS HE ADDS BUT A NEW BREED OF VINTNERS AND SOMMELIERS IS DARING TO POINT OUT THAT CORK CAN IMPART NASTY THINGS TO WINEROT MILDEW A CORKY AFTERTASTE AND A BOUQUET OF OLD TENNIS SHOES CONSUMERS LIKE CORKS FOR ROMANCE BUT CORKS ARE A PAIN IN THE NECK SAYS LOUIS TRINCHERO CHAIRMAN OF SUTTER HOME WINERY IN ST HELENA CALIF CORK HAS ALL THE PROBLEMS OF A LIVING THING LIKE HOLES FROM BUGS EATING INTO IT RONN WIEGAND A SOMMELIER WHO TASTES 5000 WINES A YEAR CONSIDERS CORKINESS A TRAGEDY THAT TAINTS PERHAPS 25 BILLION OF WINE A YEAR ADDS LEWIS PERDUE EXECUTIVE EDITOR OF THE WINE BUSINESS INSIDER NEWSLETTER THERE ARE FEW ISSUES SO EMOTIONAL AND HOTBLOODED IN THIS ENTIRE INDUSTRY THUS THE PLASTIC CORK WHICH CARRIES NO ODOR OR AROMA BUT WHICH THE WINE INDUSTRY WORRIES WILL BE SEEN AS TASTELESS AFTER BUYING THE PATENT ON THE PLASTIC PLUGGER FROM ITS BRITISH INVENTOR IN 1984 LERMER PACKAGING CORP OF GARWOOD NJ DEVELOPED A COMMERCIAL PLASTIC CORK ABOUT 18 MONTHS AGO TO DATE SCORES OF WINERIES HAVE TESTED THEM ABOUT 15 OF THEM GOING SO FAR AS TO PLUG A SELECT NUMBER OF BOTTLES WITH PLASTIC THE DEVICES SELL FOR ABOUT 11 CENTS TO 15 CENTS A POP COMPARED WITH 10 CENTS TO 40 CENTS EACH FOR THE REAL THING A SECOND COMPANY SUPREMECORQ OF KENT WASH HAS ALSO STARTED PEDDLING PLASTIC CORKS OFFERING THEM IN GRAPEPURPLE AND OTHER COLORS SO FAR ST FRANCIS IS THE ONLY WINERY TO BOTTLE ITS WINES EXCLUSIVELY WITH PLASTIC CORKS WE WERE WORRIED BECAUSE A LOT OF PEOPLE DON'T LIKE THINGS THAT AREN'T NATURAL SAYS MR MACKEY OF ST FRANCIS BUT RESTAURANTS THAT CARRY THE WINE SAY PATRONS DON'T MIND OR DON'T NOTICE ST FRANCIS' PLASTIC STOPPERS WHICH ARE CORKSHAPED AND CORKCOLORED SO FAR NO ONE HAS TRIED TO SNIFF A PLASTIC CORK AND WE DON'T MAKE A POINT OF DRAWING IT TO OUR CUSTOMERS' ATTENTION SAYS JOHN HULIHAN BEVERAGE MANAGER OF ONE MARKET A HOT SAN FRANCISCO RESTAURANT IN FACT THE CHIEF COMPLAINT IS THAT PLASTIC CORKS WITH THEIR SMOOTH SURFACES ARE HARD TO EXTRACT WITH POPULAR TWOPRONGED CORK PULLERS WHEN A CUSTOMER CALLED MR MACKEY SAYING THE EXERCISE LEFT HER FRAZZLED HE SUGGESTED THERE WERE BETTER WAYS TO GET HOT AND SWEATY BEFORE OPENING A BOTTLE OF WINE HE SENT HER A CORKSCREW OTHER WINERIES ARE PULLING OUT OF CORKS MORE SLOWLY MONDAVI OF OAKVILLE CALIF ISN'T DROPPING CORKS BUT HAS PLACED SOME OF ITS FINEST CABERNET INTO BOTTLES SEALED WITH PLASTIC CORKS AND MORE SHOCKINGLY SOME SEALED WITH BOTTLE CAPS IT WILL DECANT TEST AND TASTE THEM OVER THE NEXT DECADE BEFORE DECIDING WHETHER SYNTHETIC CORKS ARE IN OR OUT STILL OTHERS ARE EASING INTO ALTERNATIVES TO CORKS WHILE USING EUPHEMISMS TO BOTTLE UP CONSUMER CONCERNS SUTTER HOME RECENTLY INTRODUCED WHAT IT CALLS A REVOLUTIONARY NEW CLOSURE ON SOME BOTTLES THE COMPANY CALLS IT A VINLOC THE REST OF THE WORLD KNOWS IT AS A SCREW TOP BUT MOST UPSCALE WINERIES ARE AFRAID TO ABANDON REAL CORK LEST CONSUMERS THINK THEIR WINES ARE DECLASSE WHEN E& J GALLO WINERY KNOWN FOR ITS CHEAP SCREWTOP WINES WENT AFTER THE YUPPIE MARKET IN THE MID80S IT PROMOTED CORKS AS PART OF ITS UPSCALE PACKAGING WE DON'T MAKE VALUE JUDGMENTS ABOUT WINE CLOSURES SAYS LINDA BISSON HEAD OF THE VITICULTURE DEPARTMENT AT THE UNIVERSITY OF CALIFORNIA DAVIS THE DEPARTMENT HAS TESTED DIFFERENT STOPPERS AND FOUND THEY ALL WORK PRETTY WELL BUT SOMETHING ABOUT THE CORK HAS MYSTIQUE CONSUMERS AUTOMATICALLY ASSOCIATE IT WITH QUALITY DR BISSON SAYS CORK HAS PROVED DURABLE AND USEFUL OVER THE AGES AND CORK AND WINE HAVE AN ALMOST INSEPARABLE ASSOCIATION ANCIENT GREEKS USED IT AS STOPPERS FOR BOTH WINE AND OLIVE OIL AS WELL AS FOR MAKING SANDALS ROMANS USED IT FOR BEEHIVES AND ROOFS DIOSCORIDES A SECONDCENTURY PHYSICIAN TOUTED CHARRED CORK AND LAUREL SAP AS A BALDNESS CURE CORK AS A BOTTLE CLOSURE REALLY TOOK OFF IN THE 1700S AFTER DOM PIERRE PERIGNON STARTED USING IT AND WINE BEGAN TO BE SOLD IN BOTTLES INSTEAD OF BARRELS AND MANY MODERN VINTNERS THINK CORK DESPITE SOME OF THE ROTTEN THINGS BEING SAID ABOUT IT SIMPLY DOES THINGS FOR WINE THAT PLASTIC CAN'T DUPLICATE RED WINES FOR EXAMPLE AGE BETTER IN BOTTLES CLOSED WITH CORK UNLIKE PLASTIC CORK HAS A POROUS NATURE THAT ADMITS MINUTE AMOUNTS OF AIR CRITICAL TO THE AGING PROCESS SAYS ROB DAVIS WINEMAKER AT JORDAN VINEYARD AND WINERY IN HEALDSBURG CALIF BESIDES OPENING A BOTTLE WITH REAL CORK ADDS A SENSE OF THEATER THAT I ENJOY IN WINE MR DAVIS ADDS SOME OF THAT THEATER IS ABSURD COUNTERS MR WIEGAND THE SOMMELIER AND PUBLISHER OF A WINE NEWSLETTER FOR RESTAURANTS IN HIS NEWSLETTER HE ADVISES PROPRIETORS NOT TO GET HUNG UP ON THE RIDICULOUS RITUAL OF SNIFFING THE CORK SINCE SMELLING THE CORK DOES NOT PROVIDE ANY INFORMATION WHATSOEVER ABOUT THE WINE IN THE BOTTLE HE FINDS A SURPRISING ALLY IN EVAN GOLDSTEIN A SOMMELIER WHO RUNS STERLING VINEYARDS' HOSPITALITY SCHOOL AND WHO SAYS SNIFFING IS PASSE THUS WHEN A WAITER PRESENTS A CORK FOR SNIFFING HE SUGGESTS DINERS WHO WANT TO IMPRESS THEIR FRIENDS SHOULD THROW IT ACROSS THE ROOM AND HIT A CUSTOMER AT TABLE EIGHT WHAT THIS TEMPEST OVER CORKS REALLY SHOWS IS THAT CHANGE COMES SLOWLY TO THE WINE BUSINESS MONDAVI RECENTLY BOUGHT ADVERTISEMENTS IN WINE MAGAZINES TOUTING A REVOLUTION THAT WAS RESHAPING THE LOOK OF THE FINE WINE INDUSTRY WITH AN INNOVATIVE ENVIRONMENTALLYSENSITIVE NEW PACKAGE WHAT THE ADS DIDN'T MAKE CLEAR A SPOKESMAN DID THE MAJOR CHANGE IS THAT CERTAIN MONDAVI BOTTLES NO LONGER HAVE THE FOIL WRAPPER THAT TYPICALLY HOLDS CORKS IN PLACE THAT WAS CONSIDERED RADICAL SAYS CHARLES THOMAS MONDAVI'S WINEMAKER 9404280047 940428 TURNING THE TABLES BUSINESSES ARE BATTLING ENVIRONMENTALISM WITH ITS OWN LAWS THEY CLAIM RESTRICTIONS CALL FOR IMPACT STATEMENT' OR RUN AFOUL OF STATUTES A FEW JUDGES SYMPATHIZE BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL FRESNO CALIF JIM GANULIN GENERAL COUNSEL OF THE WESTLANDS WATER DISTRICT KNOWS THAT THE BIG IRRIGATION AGENCY'S ENVIRONMENTAL RECORD ISN'T ENTIRELY CLEAN WE'VE DONE SOME DAMAGE HE SAYS AND HE ACKNOWLEDGES THAT WESTLANDS AND ITS BIG AGRIBUSINESS CUSTOMERS HAVE TRIED FOR YEARS TO DILUTE ENVIRONMENTAL LAWS THROUGH COURT CHALLENGES AND LOBBYING CAMPAIGNS SO WESTLANDS RAISED SOME EYEBROWS HEREABOUTS WHEN IT ROLLED OUT A FEARED NEW WEAPON IN ITS LONGRUNNING BATTLE WITH ENVIRONMENTALISTS AND REGULATORS OVER IRRIGATION AND PESTICIDE PRACTICES THE NEW WEAPON ENVIRONMENTAL LAWS IN A CASE IN US DISTRICT COURT HERE WESTLANDS ALLEGES THAT LEGISLATION PASSED BY CONGRESS IN 1992 TO END DECADES OF CALIFORNIA AGRIBUSINESS'S DAMAGING ENVIRONMENTAL PRACTICES ITSELF VIOLATES ENVIRONMENTAL LAWS WESTLANDS HAS ASKED JUDGE OLIVER W WANGER TO BLOCK IMPLEMENTATION OF THE NEW SAFEGUARDS WHILE REQUIRING THE GOVERNMENT TO STUDY THEIR ENVIRONMENTAL IMPACT DURING SUCH A STUDY WHICH TYPICALLY TAKES YEARS THE FARMERS' PRACTICES WOULD CONTINUE UNCHANGED TO THE DISMAY OF ENVIRONMENTALISTS JUDGE WANGER HAS INDICATED IN RELATED RULINGS THAT HE MAY BE INCLINED TO AGREE WITH WESTLANDS WESTLANDS IS SAYING ENVIRONMENTAL REFORM BREAKS ENVIRONMENTAL LAWS FUMES TOM GRAFF A VETERAN ENVIRONMENTAL DEFENSE FUND ATTORNEY WHO HAS SPENT YEARS SPARRING WITH WESTLANDS OVER ITS ENVIRONMENTAL POLICIES IT'S PERVERSE AND ABSURD BUT THEY COULD WIN THE WESTLANDS CASE IS PART OF A FLOOD OF SIMILAR LAWSUITS IN COURTROOMS ACROSS THE COUNTRY INDUSTRY AND LANDOWNERS INCLUDING SOME RENOWNED POLLUTERS ARE TRYING TO TURN THE TABLES ON THEIR ENVIRONMENTAL FOES WITH THE NOVEL ARGUMENT THAT STRENGTHENED ENVIRONMENTAL PROTECTIONS RUN AFOUL OF ENVIRONMENTAL LAWS THEY ARE USING THE ENDANGERED SPECIES ACT THE NATIONAL ENVIRONMENTAL POLICY ACT AND A HOST OF OTHER FEDERAL AND STATE LAWS THE VERY LAWS USED BY ENVIRONMENTALISTS TO WIN THEIR MOST CHERISHED VICTORIES SUCH AS LOGGING CURBS ON BEHALF OF THE SPOTTED OWL THE PACIFIC LEGAL FOUNDATION A CONSERVATIVE PUBLICINTEREST LAW FIRM THAT HAS HELPED PIONEER THE TACTIC SAYS HUNDREDS OF SUCH SUITS HAVE BEEN UNDERTAKEN IN THE PAST FEW YEARS WITH THE PACE QUICKENING IN THE LAST SEVERAL MONTHS THOUGH MOST OF THE SUITS HAVE BEEN THROWN OUT OF COURT PROPONENTS OF THE APPROACH HAVE GAINED SEVERAL VICTORIES LATELY AN IDAHO FEDERAL JUDGE RECENTLY ORDERED THAT THE TINY BRUNEAU HOT SPRINGSNAIL BE DROPPED FROM THE ENDANGERED SPECIES LIST BECAUSE FEDERAL REGULATORS VIOLATED THE ENDANGERED SPECIES ACT AN OREGON FEDERAL JUDGE LAST YEAR RULED THAT THE US FISH & WILDLIFE SERVICE BROKE ENVIRONMENTAL LAWS BY NOT PROPERLY EVALUATING VARIOUS POSSIBLE IMPACTS OF ITS OWLPROTECTION ZONES ON PEOPLE THE CASE IS ON APPEAL IN SOUTHERN CALIFORNIA AN AIRQUALITY DISTRICT RECENTLY WITHDREW A RULE LIMITING TOXIC SOLVENTS IN PAINT AFTER A STATE COURT AGREED WITH PAINT MAKERS THAT THE RULE MIGHT INCREASE AIR POLLUTION BECAUSE PAINTERS WOULD HAVE TO USE MORE COATS JUST LAST MONTH THE US COURT OF APPEALS IN WASHINGTON DC THREW OUT A KEY INTERIOR DEPARTMENT INTERPRETATION OF WILDLIFE LAW UNDER WHICH REGULATORS HAVE SLAPPED BROAD RESTRICTIONS ON PRIVATE LANDOWNERS WHOSE PROPERTY IS HOME TO PROTECTED SPECIES THE COURT HELD THAT REGULATORS HAD READ MEANING INTO THE LAW THAT DIDN'T EXIST EVEN WHEN THE SUITS FAIL IN COURT SIMPLY FILING THEM OFTEN SUCCEEDS IN SLOWING ENVIRONMENTAL EFFORTS IN THE SAME WAY THAT ENVIRONMENTALISTS HAVE STALLED COUNTLESS DAMS FREEWAYS AND SHOPPING MALLS MOREOVER THE RECENT VICTORIES HAVE MUDDLED ENVIRONMENTAL MATTERS SO MUCH THAT THE SUPREME COURT ULTIMATELY WILL HAVE TO WADE IN MANY ENVIRONMENTALLAW EXPERTS BELIEVE NOW YOU'VE GOT SOME CONTRADICTORY RULINGS AND SOME REAL CONFUSION SURROUNDING APPLICATION OF ENVIRONMENTAL LAWS SAYS DAVID PRICE A CONSERVATIVE LEGAL EXPERT MANY ENVIRONMENTAL LAWYERS FEAR THAT GIVEN THE CHANCE THE HIGH COURT WOULD SIGNIFICANTLY WATER DOWN THE LAWS MOREOVER CONGRESSIONAL CRITICS OF ENVIRONMENTAL LAWS ARE USING THE RULINGS AS MORE AMMUNITION IN THEIR FIGHT TO WEAKEN THE STATUTES ESPECIALLY THE ENDANGERED SPECIES ACT WHICH IS UP FOR REAUTHORIZATION THIS YEAR ENVIRONMENTALISTS NATURALLY FIND ALL THIS GALLING INDEED SOME OF THOSE INVOLVED IN THE SUITS ARE HIGH ON THEIR LIST OF ALLEGED ECOVILLAINS RANCHERS WHOSE HEAVY GRAZING HAS DAMAGED RANGELAND AND RIVERS ALUMINUM COMPANIES WHOSE VORACIOUS NEED FOR HYDROPOWER HAS CONTRIBUTED MUCH TO THE DECLINE OF NORTHWESTERN SALMON LOGGERS WHO HAVE RAVAGED WESTERN FORESTS GIANT MINING CONCERNS DIRT BIKERS WHOSE MOTOCROSS RALLIES HAVE TRASHED MILES OF DESERT HABITAT THESE ABUSES ARE THE VERY THINGS THESE LAWS WERE DESIGNED TO PREVENT SAYS TODD TRUE A SIERRA CLUB LEGAL DEFENSE FUND ATTORNEY WHO HELPED ARGUE MANY OF THE SPOTTED OWL CASES THEY'RE TURNING THE LAWS ON THEIR HEADS ADVOCATES OF THE STRATEGY SAY THEY ARE MERELY MIMICKING THE TACTICS AND TOOLS THAT ENVIRONMENTALISTS MASTERED IN RECENT YEARS ENVIRONMENTAL LAWYERS HAVE MADE THESE LAWS INTO NEUTRON BOMBS FOR OPPONENTS OF DEVELOPMENT ASSERTS JAMES BURLING OF THE PACIFIC LEGAL FOUNDATION THEY OBSTRUCT OR DESTROY EVERYTHING IN THEIR PATH AND LEAVE THE ENVIRONMENT INTACT TO THINK THAT YOU CAN CREATE A WEAPON THAT POWERFUL AND HAVE EXCLUSIVE DOMINION OVER IT IS FOOLISH SIMPLY FILING SUCH A SUIT PERMITS LAWYERS TO EXPLOIT ENVIRONMENTAL LAWS' ELABORATE PROCEDURAL REQUIREMENTS STRICT TIMETABLES FOR ENDANGEREDSPECIES FILINGS REQUIREMENTS FOR PAINSTAKING ENVIRONMENTAL REVIEWS AND THE LIKE THE RESULT IS DELAY IN ANOTHER TACTIC LAWYERS DECONSTRUCT THE SCIENCE BEHIND THE REGULATION ARGUING THAT IT DOESN'T MEET THE LAWS' STRICT SCIENTIFIC STANDARDS THE OBJECTIVE TO GO ABOUT FARMING MINING LOGGING OR OTHER BUSINESS WITHOUT THE ADDED AND SOMETIMES HEAVY COST OF COMPLYING WITH NEW ENVIRONMENTAL PROTECTIONS THUS ALUMINUM COMPANIES HAVE SUED THE NATIONAL MARINE FISHERIES SERVICE ALLEGING THAT FEDERAL EFFORTS TO SAVE THE ENDANGERED SALMON IN THE COLUMBIA RIVER BASIN ARE SCIENTIFICALLY LAME AND VIOLATE THE ENDANGERED SPECIES ACT THE NATION'S BIGGEST ALUMINUM PRODUCERS SUCH AS ALUMINUM CO OF AMERICA AND KAISER ALUMINUM CORP HAVE PLANTS THAT TAKE ADVANTAGE OF THE CHEAP POWER GENERATED BY THE TOWERING DAMS ALONG THE COLUMBIA AND ITS TRIBUTARIES THOSE DAMS HOWEVER ARE BLAMED BY ENVIRONMENTALISTS AND FEDERAL REGULATORS FOR MUCH SOME SAY MOST OF THE DIZZYING DECLINE OF SALMON IN THEIR SUIT THE ALUMINUM COMPANIES ARGUE THAT THE DAMS AREN'T SO BAD AFTER ALL THEY SAY THEIR SCIENTIFIC STUDIES SHOW THE REAL CULPRITS TO BE OVERFISHING AND FISH HATCHERIES WHICH INTRODUCE DISEASES AND DILUTE THE WILDSALMON GENE POOL THEY CONTEND IT IS THE COMPANIES THAT ARE ENDANGERED BY THE SERVICE'S PLAN TO MAKE ALTERNATIONS IN DAM OPERATIONS THAT WOULD REDUCE POWER GENERATION AND REGULATORS CONTEND FISH DEATHS IT WOULD RAISE ELECTRIC RATES TO INTOLERABLE LEVELS SAYS JOHN CARR DIRECTOR OF THE ALUMINUM COMPANIES' PORTLANDBASED TRADE GROUP HE ADDS NO ONE IS MORE INTERESTED IN SAVING THE SALMON THAN WE ARE NATIONAL MARINE FISHERIES OFFICIALS AND ENVIRONMENTALISTS RECOIL AT SUCH TALK WE'RE DELIGHTED THEY'RE SUCH ADMIRERS OF THE ENDANGERED SPECIES ACT BUT WE'RE CONTESTING THEIR ARGUMENTS SAYS MERRITT TUTTLE SENIOR POLICY ANALYST FOR THE FISHERIES' NORTHWESTERN REGION ENVIRONMENTALISTS WHO AGREE THAT OVERFISHING AND HATCHERIES ARE CONTRIBUTING TO THE SALMON PROBLEM ASSERT THAT SOME OF THE ALUMINUM COMPANIES HAVE HAD TROUBLE COMPLYING WITH ENVIRONMENTAL LAWS THEMSELVES KAISER FOR EXAMPLE HAS BEEN FEUDING WITH THE ENVIRONMENTAL PROTECTION AGENCY FOR YEARS OVER ALLEGED REPEATED AIRPOLLUTION VIOLATIONS AT A SPOKANE WASH PLANT KAISER DENIES ANY WRONGDOING THE ALUMINUM COMPANIES LOST THE FIRST LEGAL ROUND WHEN FEDERAL JUDGE MALCOLM F MARSH OF PORTLAND RULED LAST YEAR THAT THEY DIDN'T HAVE STANDING TO BRING THE SUIT UNDER ENVIRONMENTAL LAWS JUDGE MARSH SAID ALLOWING THE SUIT TO PROCEED WOULD BE AKIN TO PERMITTING A FOX TO COMPLAIN THAT THE CHICKENS HAVE NOT BEEN FED THE ALUMINUM COMPANIES ARE UNDETERRED THEY HAVE APPEALED AND A DECISION FROM THE HIGHER COURT IS EXPECTED LATER THIS YEAR FILERS OF SUCH SUITS HAVE GENERALLY FARED BETTER CONTESTING MATTERS OF PROCEDURE INSTEAD OF SCIENCE CONSIDER THE CASE OF THE BRUNEAU HOT SPRINGSNAIL A YELLOWISH GASTROPOD ABOUT THE SIZE OF A BB PELLET THE SNAIL LIVES IN HOT SPRINGS IN HIGH DESERT COUNTRY IN IDAHO'S OWYHEE COUNTY IN THE MID1980S FEDERAL SCIENTISTS DISCOVERED THAT THE SPRINGS WERE DRYING UP AT LEAST IN PART BECAUSE OF HEAVY IRRIGATION PUMPING BY CATTLE RANCHERS AND ALFALFA AND WHEAT FARMERS THE FISH & WILDLIFE SERVICE PROPOSED PROTECTING THE SNAILS WHICH PROBABLY WOULD HAVE MEANT RESTRICTIONS ON IRRIGATION PUMPING BUT THE FARMERS AND RANCHERS WHICH INCLUDE SEVERAL SUCH WEALTHY AGRIBUSINESS OPERATORS AS POTATO AND CATTLE BARON JR SIMPLOT NET WORTH 950 MILLION BY FORBES'S ESTIMATE COMPLAINED TO IDAHO CONGRESSMEN WHO COMPLAINED TO THE SERVICE WHICH PUT THE BRAKES ON ITS SNAIL PLAN ONLY AFTER ENVIRONMENTALISTS SUED ALLEGING THAT THE SERVICE HAD BROKEN THE ENDANGERED SPECIES ACT BY DAWDLING WAS THE SNAIL FORMALLY CLASSIFIED AS ENDANGERED THAT WAS JANUARY 1993 OWYHEE COUNTY CITIZENS LED BY THE IDAHO FARM BUREAU AND LOCAL CATTLEMEN'S ASSOCIATION SWIFTLY SUED THEIR ARGUMENT THE SERVICE HAD TAKEN TOO LONG TO FORMALLY RULE ON THE SNAIL JUST AS ENVIRONMENTALISTS HAD BEEN SAYING THREE MONTHS AGO FEDERAL JUDGE HAROLD L RYAN RULED THAT THE GOVERNMENT HAD INDEED VIOLATED THE ENDANGERED SPECIES ACT'S REQUIREMENT THAT A FINAL DECISION ON LISTING A SPECIES BE MADE WITHIN 18 MONTHS AFTER SUCH A LISTING HAS BEEN PROPOSED THE JUDGE ALSO LAMBASTED THE SERVICE FOR ITS ARBITRARY AND CAPRICIOUS BEHAVIOR IN FAILING TO FOLLOW VARIOUS OTHER PROCEDURAL STEPS HE LIFTED THE SNAIL'S FEDERAL PROTECTION AND THE SNAIL WILL REMAIN UNPROTECTED WHILE THE RULING IS APPEALED ENVIRONMENTALISTS ARE RATTLED FOR ONE THING THEY BELIEVE THAT THE MAIN REASON THE FEDS MOVED AT SUCH A PACE WAS THAT POLITICALLY CONNECTED IDAHOANS GOT THEIR CONGRESSMEN TO LEAN ON THE SERVICE ANOTHER OMINOUS SIGN FOR ENVIRONMENTALISTS IF APPLIED ELSEWHERE JUDGE RYAN'S RULING COULD CONCEIVABLY REVERSE NUMEROUS LISTINGS OR HALT OTHER PENDING ONES THE FISH & WILDLIFE SERVICE ALMOST ALWAYS TAKES MORE THAN 18 MONTHS TO RENDER ITS FINAL RULING THAT'S THE SCARIEST FALLOUT FROM THIS SAYS LAIRD LUCAS AN ENVIRONMENTAL ATTORNEY IN BOISE WHO IS APPEALING JUDGE RYAN'S RULING AND WHAT OF THE SNAIL ENVIRONMENTALISTS AND FEDERAL SCIENTISTS SAY THEY STILL BELIEVE IT IS HEADED FOR POSSIBLE EXTINCTION WITHOUT PROTECTION IN OWYHEE COUNTY THEY DON'T BUY THAT THERE'S PLENTY OF SNAILS SAYS RAYOLA JACOBSEN OF THE IDAHO FARM BUREAU SHE DOES CONCEDE HOWEVER THAT A 500 BOUNTY OFFERED TO ANYONE WHO CAN FIND A NEW SNAIL COLONY HASN'T TURNED UP ANY YET MEANWHILE THE FARM BUREAU IS PURSUING A SIMILAR SUIT SEEKING TO OVERTURN FEDERAL PROTECTIONS FOR FOUR SNAILS AND A LIMPET ON THE SNAKE RIVER BUT IT IS THE WESTLANDS CASE THAT MAY HAVE BROUGHT THE TURNABOUT APPROACH TO ITS HIGHEST FORM WESTLANDS PROVIDES SUBSIDIZED FEDERAL WATER TO A SERVICE AREA THE SIZE OF RHODE ISLAND IN THE ARID CENTRAL VALLEY MOSTLY FOR COTTON GROWERS ITS ACREAGE INCLUDES LAND OWNED OR MANAGED BY SOME OF AMERICA'S WEALTHIEST FARMERS SUCH AS JG BOSWELL WHOSE COTTONBASED FORTUNE HAS BEEN ESTIMATED BY FORBES AT MORE THAN 500 MILLION IN MAKING THE DESERT BLOOM WESTLANDS FARMERS SOMETIMES MADE THE ENVIRONMENT REEL RUNOFF FROM WESTLANDS FARMS HELPED POISON THE KESTERSON WILDLIFE REFUGE WHERE THOUSANDS OF MIGRATORY BIRDS HAVE DIED SINCE THE LATE 1970S AND THE HEAVY PUMPING HAS BEEN A PRINCIPAL FACTOR IN THE COLLAPSE OF THE POPULATIONS OF THE FEDERALLY PROTECTED SACRAMENTO RIVER CHINOOK SALMON AND THE DELTA SMELT FOR DECADES WESTLANDS FARMERS DISPUTED ACCUSATIONS THAT THEY WERE HARMING THE ENVIRONMENT FOUGHT LEGAL WARS OF ATTRITION AND LOBBIED TO WEAKEN ENVIRONMENTAL LAWS WESTLANDS OFFICIALS NO LONGER DENY THAT THEY HAVE HURT THE ENVIRONMENT ALTHOUGH THEY SAY THEIR IMPACT HAS BEEN EXAGGERATED WESTLANDS LOBBYISTS CONTINUE WORKING TO WEAKEN THE ENDANGERED SPECIES ACT DURING ITS REAUTHORIZATION ALL OF WHICH MAKES THEIR CURRENT LEGAL STANCE IN FRESNO NOTEWORTHY WESTLANDS IS TRYING TO BLOCK A GOVERNMENT PLAN TO USE 600000 ACRE FEET OF FEDERAL WATER TO RESTORE WETLANDS AND FISH HABITAT DAMAGED BY PAST IRRIGATION AND OTHER FARMING PRACTICES BEFORE CONGRESS PASSED ITS 1992 LEGISLATION DESIGNED TO CURB CENTRAL VALLEY FARMERS' ENVIRONMENTAL ABUSES THAT WATER WOULD HAVE GONE TO THE COTTON FIELDS IN A PACKED FRESNO COURTROOM RECENTLY WHILE 19 LAWYERS AND A FEW FARMERS LISTENED IN WESTLANDS ATTORNEY TOM BIRMINGHAM MADE THE FARMERS' CASE THE GOVERNMENT WHICH WANTS TO START USING THE DISPUTED WATER WITHIN WEEKS VIOLATED THE ENDANGERED SPECIES ACT BY NOT FOLLOWING PROPER PROCEDURES ON ITS SALMON PLAN IT VIOLATED THE NATIONAL ENVIRONMENTAL POLICY ACT KNOWN AS NEPA BY NOT DOING AN EXHAUSTIVE ENVIRONMENTAL REVIEW THE LAW REQUIRES THIS BECAUSE MR BIRMINGHAM ARGUED THE USE OF THE WATER FOR ENVIRONMENTAL PURPOSES WILL HAVE SIGNIFICANT ENVIRONMENTAL IMPACTS ON FARMERS GROUND WILL SINK BECAUSE FARMERS WILL JUST PUMP OUT GROUNDWATER TO MAKE UP FOR THE LOST FEDERAL WATER AIR WILL FILL WITH DUST BECAUSE THEY WON'T HAVE ENOUGH WATER TO DAMP DOWN THE DIRT QUERIED BY JUDGE WANGER ABOUT WHETHER THE PUBLIC INTEREST IS BETTER SERVED BY PROTECTING THE FARMERS' ENVIRONMENT OR THAT OF ENDANGERED SPECIES MR BIRMINGHAM SAID YOUR HONOR IT IS INCONCEIVABLE THAT THE PUBLIC INTEREST WILL NOT BE BEST SERVED BY REQUIRING THE GOVERNMENT TO OBEY THE LAW JUDGE WANGER IS EXPECTED TO RULE SOON ON WESTLANDS' REQUEST FOR AN INJUNCTION AGAINST TRANSFERRING THE WATER BUT IN AN 87PAGE ORDER REJECTING AN EARLIER GOVERNMENT ATTEMPT TO DISMISS THE CASE JUDGE WANGER WROTE THAT IT CAN NOT BE CREDIBLY ARGUED THAT THE DISPUTED WATER ALLOCATIONS DO NOT SIGNIFICANTLY AFFECT THE HUMAN ENVIRONMENT WE'RE CONCERNED THAT THE JUDGE FEELS AN ENVIRONMENTALIMPACT STATEMENT WILL BE REQUIRED OBSERVES THE ENVIRONMENTAL DEFENSE FUND'S MR GRAFF IF HE MAKES THAT RULING IT WILL BE A TRAVESTY IT WOULD TAKE YEARS TO PREPARE AND THE WILDLIFE DOESN'T HAVE THE TIME TO SPARE HE SAYS WESTLANDS WILL GROW ITS COTTON AND DAMAGE THE ENVIRONMENT SOME MORE THAT'S NOT WHAT ENVIRONMENTAL LAWS WERE INTENDED TO ACHIEVE 9404280046 940428 BUSINESS BRIEF MOTOR COACH INDUSTRIES TALKS UNDER WAY TO SCRAP OR AMEND A MERGER PACT MOTOR COACH INDUSTRIES INTERNATIONAL INC AND CONSORCIO G GRUPO DINA SA SAID THEY ARE DISCUSSING EITHER SCRAPPING OR AMENDING A MERGER AGREEMENT STRUCK LAST NOVEMBER THAT WOULD COMBINE THE COMPANIES IN A 337 MILLION STOCK SWAP THE COMPANIES ATTRIBUTED THE TALKS TO THE CURRENT PRICE OF GRUPO DINA'S AMERICAN DEPOSITARY SHARES WHICH AT 13625 A SHARE ON THE NEW YORK STOCK EXCHANGE ON TUESDAY ARE TRADING BELOW THE 20 TO 30 RANGE LAID OUT IN THE MERGER AGREEMENT THE COMPANIES SAID THEY HOPE TO STRIKE A NEW AGREEMENT BUT CANNOT GUARANTEE THAT ONE WILL BE REACHED THE TRANSACTION WOULD COMBINE THE LARGEST US BUSMAKING COMPANY BASED IN PHOENIX WITH ONE OF MEXICO'S LARGEST BUS AND TRUCK MANUFACTURERS THE ORIGINAL PACT CALLED FOR 1672 OF A NEW CLASS OF DINA COMMON STOCK TO BE SWAPPED FOR EACH OF MOTOR COACH'S 201 MILLION COMMON SHARES OUTSTANDING MOTOR COACH STOCK CLOSED AT 11375 A SHARE TUESDAY IN COMPOSITE TRADING ON THE BIG BOARD 9404280045 940428 BUSINESS BRIEF BALTIMORE BANCORP FIRSTQUARTER NET SLID 49 AS GAINS ON SECURITIES FELL CITING A LARGE DROP IN GAINS FROM ITS SECURITIES HOLDINGS BALTIMORE BANCORP SAID FIRSTQUARTER PROFIT DROPPED 49 THE PARENT OF THE BANK OF BALTIMORE REPORTED NET INCOME OF 25 MILLION OR 15 CENTS A SHARE COMPARED WITH 49 MILLION OR 35 CENTS A SHARE A YEAR AGO NET INTEREST INCOME WAS 235 MILLION UP ABOUT 3 FROM 228 MILLION GAINS ON SECURITIES FELL TO 526000 FROM 61 MILLION A YEAR AGO THE PROVISION FOR LOAN LOSSES WAS 25 MILLION DOWN FROM 6 MILLION A YEAR AGO ASSETS TOTALED 22 BILLION FIRST FIDELITY BANCORP OF LAWRENCEVILLE NJ SAID LAST MONTH THAT IT WOULD ACQUIRE BALTIMORE BANCORP FOR 346 MILLION BY THE END OF THE YEAR 9404280044 940428 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO IN A RITE OF SPRING TUITION AT PUBLIC COLLEGES HEADS UP BUT THE PACE IS SLOWER PUBLIC COLLEGES ARE LIKELY TO SEEK SMALLER RISES IN THE 199495 YEAR AS IMPROVING STATE ECONOMIES CURB CUTS IN SCHOOL FINANCING SAYS DAVID MERKOWITZ OF THE AMERICAN COUNCIL ON EDUCATION AVERAGE ANNUAL INCREASES AT PUBLIC COLLEGES HAVE SHRUNK SINCE THE 199192 YEAR WHEN TUITION AND FEES SURGED 12 SAYS THE COLLEGE BOARD IN NEW YORK LAST YEAR THE AVERAGE RISE WAS 8 DOWN FROM 10 THE YEAR BEFORE MICHIGAN STATE UNIVERSITY IS RAISING TUITION BY 35 THE LOWEST INCREASE THERE IN A DECADE A REASON AN EXPECTED 2 TO 3 RISE IN STATE FUNDS AFTER THREE YEARS OF LEVEL FUNDING RUTGERS IN NEW JERSEY EXPECTS AT LEAST A 35 RISE VS 55 LAST YEAR WHILE THE UNIVERSITY OF IOWA SEEKS A 44 RISE DOWN FROM 5 LOUISIANA STATE UNIVERSITY HOPES TO AVOID AN INCREASE BECAUSE ENROLLMENT HAS SLID TUITION IS GETTING SO HIGH SAYS JAMES COLEMAN EXECUTIVE VICE CHANCELLOR HIS SCHOOL'S BASIC TUITION THIS YEAR IS 2625 UP 11 IN ONE YEAR MORE MENTORS FIRMS HEED THE CRY ON TAKE OUR DAUGHTERS TO WORK DAY LEARNING FROM LAST YEAR SOME FIRMS INVOLVED IN TODAY'S SECOND ANNUAL MS FOUNDATIONSPONSORED EVENT CHANGE TACK GIVING THEIR YOUNG GUESTS MORE TIME WITH A MENTOR LAST YEAR MERRILL LYNCH IN NEW YORK HAD 125 GIRLS IN A ROOM LISTENING TO FOUR HOURS OF PRESENTATIONS THE GIRLS FELT THEY WERE IN A CLASSROOM SAYS MARIE KELLY THIS TIME THE GIRLS WILL SPEND MOST OF THE DAY SHADOWING AN EMPLOYEE NEW YORK LIFE CUTS DOWN ON TOURS PLANNING INSTEAD ACTIVITIES LIKE FILLING OUT AND EVALUATING MOCKAPPLICATIONS FOR A GROUPHEALTH POLICY THE CHICAGO MERC EXCHANGE PLANS ANOTHER PIZZAFUTURES TRADING SESSION BUT UNLIKE LAST YEAR THE GIRLS FIRST WILL HAVE A 45MINUTE TRAINING PERIOD WITH MEMBER COACHES AND THEY WILL TRADE IN A PIT RINGED BY RAILS TO KEEP PARENTS FROM JUMPING IN WITH THEIR DAUGHTERS SAYS A SPOKESMAN THE MS FOUNDATION EXPECTS CLOSE TO THREE MILLION GIRLS AND SOME BOYS TO JOIN THIS YEAR ABOUT TRIPLE THE NUMBER IN 1993 TRANSIT AGENCIES PONDER DEVICES GIVING BUSES TRAFFICLIGHT RIGHT OF WAY SQUEEZING OUT MORE GREEN TIME TO KEEP BUSES MOVING FINDS FAVOR AMONG A HANDFUL OF TRANSIT AGENCIES THEY LOOK AT OUTFITTING BUSES WITH A DEVICE THAT LETS COMPUTERS AT INTERSECTIONS IDENTIFY THE VEHICLES AS BUSES THE COMPUTERS THEN GIVE BUSES PRIORITY BY EXTENDING THE GREEN LIGHT OR SHIFTING FROM RED IN WASHINGTON STATE KING COUNTY WHICH INCLUDES SEATTLE AND SNOHOMISH COUNTY ARE PICKING A TECHNOLOGY TO IDENTIFY BUSES SAYS ELLEN BEVINGTON OF THE KING COUNTY METRO PORTLAND ORE JUST WRAPPED UP TESTING A SYSTEM THAT PREEMPTED RED LIGHTS WHENEVER A BUS RAN LATE ON A ROUTE AND IN MILWAUKEE COUNTY THE TRANSIT AGENCY USED SIGNALPREEMPTION TO CREATE AN EXPRESS ROUTE RIDERSHIP ON THAT LINE EXCEEDED GOALS BY 10 SAYS THE AGENCY'S JOSEPH CARUSO HE ADDS THAT THE SYSTEM SAVES ON CAPITAL INVESTMENT AND LABOR BECAUSE THE AGENCY DOESN'T HAVE TO USE AS MANY BUSES MEANWHILE IN NEW YORK TRAFFIC CAMERAS THAT SNAP REDLIGHT RUNNERS HAVE SNARED 76 CITY BUSES SINCE DECEMBER SECRETIVE SACRAMENTO CALIF TOPS THE LIST OF METROPOLITAN AREAS AT 65 WITH THE MOST UNLISTED PHONE NUMBERS OR ADDRESSES SAYS SURVEY SAMPLING INC THE CONNECTICUT FIRM SAYS 30 OF HOUSEHOLDS IN THE US ARE UNLISTED UP FROM 22 IN 1984 WHAT A RELIEF WE ARE NEITHER MULTIMEDIA MYOPICS OR CONVERGING CORNUCOPIASTS DECLARES A LEHMAN BROTHERS REPORT ON MULTIMEDIA TECHNOLOGY PUBLISHED IN CONNECTION WITH A CONFERENCE THAT STARTS TODAY MORE OLD NEWSPAPERS WERE RECYCLED THAN WERE USED TO LINE BIRD CAGES LAST YEAR THE AMERICAN FOREST & PAPER ASSOCIATION SAYS 58 OF NEWSPAPERS WERE RECYCLED IN 1993 UP FROM 35 IN 1988 GROCERS CUT WORKERS' COMPENSATION CLAIMS BY CURING SCANNER STRESS GROCERY CHAINS ARE FINDING WAYS TO COPE WITH SCANNERRELATED INJURIES AMONG CHECKERS STEELE'S MARKETS IN COLORADO DESIGNED CHECKOUT STANDS IN A STORE SO THAT HALF HAD SCANNERS ON THE RIGHT AND THE REST ON THE LEFT IT THEN ARRANGED SHIFTS SO WORKERS ALTERNATED BETWEEN THE TWO STEELE'S HAS SINCE SEEN 35 FEWER WORKERS' COMPENSATION CLAIMS IN THAT STORE VS OTHER OUTLETS SAYS RUSS KATES CONTROLLER IT PLANS TO CONVERT HALF THE STANDS AT OTHER STORES AT THE COST OF 500 PER STAND IMPROVING CHECKOUT ERGONOMICS HAS BEEN A CONCERN AMONG SUPERMARKETS AS CLAIMS OFTEN TIED TO SCANNER USE HAVE CLIMBED RISING 40 LAST YEAR SAYS MICHAEL GORSHE OF ANDERSEN CONSULTING IN CHICAGO WILLIAM MARRIS OF OHIO STATE UNIVERSITY SAYS SCANNERS HAVE ENABLED WORKERS TO CHECK OUT FOUR TIMES MORE GROCERY PRODUCTS ABOUT TWO TONS PER SHIFT THAN CHECKERS DID A DECADE AGO MAKING CHECKOUTCOUNTER DESIGN MORE CRITICAL THE FOOD MARKETING INSTITUTE NEXT WEEK WILL RELEASE RESULTS OF A THREEYEAR STUDY BY DR MARRIS ON THE ERGONOMIC RISKS OF CHECKOUT STANDS BRIEFS UPPING THE ANTE IN GIVEAWAY ADVERTISING THE MATCHBOOK FROM THE METROPOLITAN ECONOMIC DEVELOPMENT COUNCIL OF RICHMOND VA IS ACTUALLY A CALCULATOR SOLE OF THE WEST AN EXHIBIT AT ARIZONA'S DESERT CABALLEROS WESTERN MUSEUM CELEBRATES COWBOY BOOTS 9404280043 940428 BUSINESS BRIEF GOODYEAR TIRE & RUBBER CO CONCERN TO INVEST 30 MILLION IN JOINT VENTURE IN CHINA GOODYEAR TIRE & RUBBER CO SAID IT WILL INVEST 30 MILLION TO MANUFACTURE TIRES IN CHINA THROUGH A JOINT VENTURE WITH DALIAN RUBBER GENERAL FACTORY THE JOINT VENTURE NAMED GOODYEAR DALIAN WILL BE 75 OWNED BY GOODYEAR THE REMAINING 25 WILL BELONG TO DALIAN LOCATED IN CHINA'S LIAONING PROVINCE ON THE EASTERN COAST SUBJECT TO APPROVAL BY CHINA'S GOVERNMENT THE JOINT VENTURE WILL OPERATE OUT OF DALIAN'S EXISTING FACILITIES GOODYEAR SAID IT WILL INCREASE INITIAL RADIAL PASSENGER TIRE OUTPUT TO 14 MILLION ANNUALLY LAST YEAR GOODYEAR WHICH IS BASED IN AKRON OHIO FORMED ANOTHER ASIAN JOINT VENTURE SOUTH ASIA TIRE WITH CEAT LTD IN INDIA 9404280041 940428 INTERNATIONAL BRIEF SWISSAIR AIRLINE UNIT SEEKS TO BUY CATERING BUSINESS FROM SAS SWISSAIR THE NATIONAL SHAREHOLDEROWNED AIRLINE OF SWITZERLAND SAID ITS GATE GOURMET UNIT IS IN NEGOTIATIONS WITH SCANDINAVIAN AIRLINES SYSTEM TO ACQUIRE SAS'S CATERING SERVICE SAS SERVICE PARTNER A SWISSAIR SPOKESMAN DECLINED TO DISCLOSE TERMS OF THE TRANSACTION BUT SWEDISH AND NORWEGIAN PRESS REPORTS SUGGESTED SWISSAIR'S GATE GOURMET UNIT WILL ACQUIRE SSP FOR BETWEEN TWO BILLION AND 25 BILLION SWEDISH KRONOR 2552 MILLION AND 319 MILLION IN A BRIEF STATEMENT SWISSAIR SAID THE PURCHASE OFFER TO SAS IS PART OF THE GENERAL EXPANSION STRATEGY OF THE GATE GOURMET GROUP SAS MEANWHILE SEEKS TO SELL ITS CATERING SERVICE UNIT IN ORDER TO FOCUS ON ITS CORE BUSINESS SWISSAIR SAID SAS SERVICE PARTNER WHICH OPERATES AIRLINE AND TRAIN CATERING FACILITIES AT 33 AIRPORTS IN EUROPE AND ASIA EMPLOYS AROUND 6500 PEOPLE AND HAS ANNUAL SALES OF AROUND 670 MILLION SWISS FRANCS 4684 MILLION SWISSAIR SAID 9404280040 940428 WHO'S NEWS UNITED TECHNOLOGIES CORP UNITED TECHNOLOGIES CORP HARTFORD CONN DAVID C MANKE 40 YEARS OLD WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT INTERNATIONAL AFFAIRS FOR THIS MAKER OF AIRCRAFT ENGINES ELEVATORS AND AIRCONDITIONING EQUIPMENT HE HAD BEEN DEPUTY GENERAL COUNSEL FOR THE CARRIER UNIT 9404280039 940428 BUSINESS BRIEF TRANSAMERICA CORP FIRSTQUARTER NET ROSE 12 OPERATING PROFIT GREW 13 TRANSAMERICA CORP SAID STRONG RESULTS FROM ITS LIFE INSURANCE AND REAL ESTATE SECTORS BOOSTED FIRSTQUARTER NET INCOME BY 12 THE COMPANY BASED IN SAN FRANCISCO SAID ITS OPERATING NET WHICH INCREASED 13 SET A FIRSTQUARTER RECORD THE FINANCIALSERVICES COMPANY SAID ITS FIRSTQUARTER NET WAS 103 MILLION OR 128 A SHARE INCLUDING A GAIN OF 17 MILLION OR TWO CENTS A SHARE FROM INVESTMENTS AND A LOSS OF 700000 OR ONE CENT A SHARE FROM AN INVESTMENT IN SEDGWICK GROUP PLC A LONDON INSURER FIRSTQUARTER NET A YEAR AGO WAS 918 MILLION OR 108 A SHARE TRANSAMERICA'S INCOME FROM CONTINUING OPERATIONS EXCLUDING INVESTMENT GAINS WAS 102 MILLION OR 127 A SHARE IN THE YEARAGO PERIOD THE COMPANY REPORTED OPERATING EARNINGS OF 902 MILLION OR 107 A SHARE FIRSTQUARTER OPERATING INCOME FROM LIFE INSURANCE ROSE 7 TO 556 MILLION TRANSAMERICA SAID THE COMPANY'S CONSUMER LENDING EARNINGS FELL ABOUT 12 TO 214 MILLION BUT REAL ESTATE SERVICES WERE UP 25 TO 246 MILLION BENEFITTING FROM INCREASES IN MORTGAGE REFINANCING AND HOME SALES 9404280038 940428 BUSINESS BRIEF OLYMPIC AIRWAYS EMPLOYEES AT GREEK CARRIER REJECT PLAN INVOLVING CUTS OLYMPIC AIRWAYS EMPLOYEES REJECTED THE GREEK SOCIALIST GOVERNMENT'S PROPOSAL FOR DRASTIC MEASURES AIMED AT SAVING THE DEBTRIDDEN NATIONAL CARRIER THE PLAN INCLUDES A FOURYEAR WAGE FREEZE EARLY RETIREMENT FOR 1746 PEOPLE FROM A WORK FORCE OF 9900 THE SALE OF SOME AIRCRAFT AND THE SUSPENSION OF UNPROFITABLE ROUTES NOT ONLY WILL THE POSSIBLE ADOPTION OF THESE PROPOSALS NOT PROVIDE SOLUTIONS BUT IT WILL INCREASE THE ALREADYACUTE PROBLEM ALSO IT WILL NOT ALLOW ANY POTENTIAL FOR OLYMPIC AIRWAYS' DEVELOPMENT THE FEDERATION OF CIVIL AVIATION UNIONS SAID AFTER A MEETING IT SAID THAT MEMBERS OF THE UNION WOULD HOLD MORE MEETINGS ON THE ISSUE BUT DIDN'T SPECIFY ANY POSSIBLE ACTION TRANSPORT MINISTER YANNIS HARALAMBOUS SAID TUESDAY THAT THE GOVERNMENT WILL PRESENT THE RESTRUCTURING PLAN TO THE EUROPEAN UNION COMMISSION BY MAY 10 9404280037 940428 INTERNATIONAL BRIEF BAYER AG PRETAX PROFIT INCREASED 18 DURING THE FIRST QUARTER BAYER AG REPORTED AN 18 JUMP IN PRETAX PROFIT FOR THE FIRST QUARTER CONTINUING A WAVE OF UPBEAT EARNINGS REPORTS BY MAJOR EUROPEAN CHEMICAL COMPANIES BAYER SAID PRETAX PROFIT ROSE TO 755 MILLION MARKS 4503 MILLION UP FROM 640 MILLION MARKS IN THE YEAREARLIER QUARTER SALES ROSE 6 TO 1099 BILLION MARKS BAYER OF LEVERKUSEN GERMANY SAID IT WAS CONFIDENT OF ACHIEVING A FORECAST BY CHIEF EXECUTIVE OFFICER MANFRED SCHNEIDER THAT PRETAX PROFIT WILL RISE 15 TO 20 FOR THE YEAR THE TREND IN THE FIRST QUARTER HAS BORNE OUT OUR ORIGINAL OPTIMISM WE EXPECT THAT THE GLOBAL BUSINESS CLIMATE WILL CONTINUE TO IMPROVE BAYER SAID GERMAN CHEMICAL COMPANIES FACED WITH HEAVY LABOR COSTS AND RISING COMPETITION FROM CHEAPER PRODUCTION REGIONS ARE REORGANIZING TO CUT COSTS AND CONCENTRATE ON PROFITABLE BUSINESS SEGMENTS 9404280036 940428 LEISURE & ARTS TOP 10 PRIMETIME PROGRAMS COMPILED BY NIELSEN MEDIA RESEARCH COPYRIGHT 1994 9404280035 940428 INTERNATIONAL BRIEF WILLIAMS HOLDINGS PLC SOLVAY UNITS TO BE ACQUIRED FUNDED BY PART OF NEW ISSUE WILLIAMS HOLDINGS PLC LONDON SAID THAT IT WILL ACQUIRE THE EUROPEAN WOODCARE AND TILE ADHESIVE BUSINESSES OF SOLVAY SA FOR 64 MILLION 964 MILLION FUNDED BY PART OF A 1FOR7 RIGHTS ISSUE THE RIGHTS ISSUE SET AT 330 PENCE A SHARE WILL RAISE A NET 267 MILLION AND INVOLVE THE ISSUANCE OF 829 MILLION NEW SHARES WILLIAMS SAID THAT THE PROCEEDS IN EXCESS OF THE SOLVAY ACQUISITION WILL BE USED TO CONTINUE THE DEVELOPMENT OF THE GROUP WILLIAMS SAID HOWEVER THAT THE RIGHTS ISSUE ISN'T CONDITIONAL UPON THE COMPLETION OF THE ACQUISITION WILLIAMS CHAIRMAN NIGEL RUDD SAID THESE BUSINESSES WITH THEIR MARKET LEADERSHIP IN A NUMBER OF COUNTRIES MATERIALLY STRENGTHEN WILLIAMS'S BUILDING PRODUCTS INTERESTS IN EUROPE 9404280034 940428 LEISURE & ARTS FILM MEG RYAN AS A MOM IN DETOX BY JULIE SALAMON WHEN A MAN LOVES A WOMAN MAY BE THE PRETTIEST MOVIE ABOUT ADDICTION EVER MADE EVERYTHING IS SHOT IN A WARM GLOW EVEN THE DETOX CENTER WHERE THE FILM'S ALCOHOLIC CHARACTER GOES TO DRY OUT THE FILM IS CONSTRUCTED LIKE A WELLMEANING TV MOVIE THAT AIMS THROUGH ENTERTAINMENT TO UPLIFT AND INSTRUCT HERE THE MESSAGE IS THIS EVEN GOODLOOKING AND APPARENTLY WELLADJUSTED PEOPLE IN HAPPY FAMILIES CAN BE DYSFUNCTIONAL THESE PEOPLE MUST FACE THEIR PROBLEMS SO LIFE CAN GO ON THE MESSAGE IS EFFECTIVELY DELIVERED BY ATTRACTIVE ACTORS AND THAT'S THE PROBLEM ALMOST EVERY SCENE SEEMS CONSTRUCTED NOT TO OFFER INSIGHT INTO THE SOULS OF THESE CHARACTERS BUT TO MAKE SOME EASY SPECIFIC POINT ABOUT THE BEHAVIOR OF ALCOHOLICS AND HOW TO DEAL WITH SUCH BEHAVIOR THE CHARACTERS HAVE NO INDIVIDUALITY THEY ARE REPRESENTATIVE TYPES THE KINDLY BUT OVERBEARING HUSBAND THE PRETTY BUT INSECURE WIFE WHO MAY BE ALCOHOLIC BECAUSE HER FATHER WAS THE FILMMAKERS ARE AWARE THAT SERMONIZING ALONE WON'T SELL TICKETS SO THERE'S LOTS OF CUTE SEX PLAY BETWEEN THE HUSBAND AND WIFE ANDY GARCIA AND MEG RYAN AND MS RYAN WEARS SLINKY REVEALING CLOTHING ON SOME OF HER BINGES THESE OBVIOUS TRICKS DON'T DIMINISH MS RYAN'S PERFORMANCE HOWEVER SHE IS ASTONISHINGLY GOOD AS ALICE THE PRETTY SEXY WOMAN WITH A NICE FAMILY AND A NOTSONICE DRINKING PROBLEM AVOIDING THE HISTRIONICS THAT OFTEN TEMPT ACTORS PLAYING DRUNKS SHE GETS IT ALL RIGHT THE GIGGLY PLEASURE OF DRINKING AS WELL AS THE CONFUSION AND CRUELTY THAT CAN GO ALONG WITH IT SHE'S BEST IN ALICE'S POSTDETOX PHASE SHOWING A WOMAN COMPLETELY ABSORBED IN THE SELFPITY AND SELFRIGHTEOUSNESS OF THE REFORMING ALCOHOLIC BUT THE FILMMAKERS DON'T LET ALICE STAY UGLY TOO LONG INDEED MS RYAN LOOKS INCREDIBLY ATTRACTIVE EVEN IN ALICE'S WORST MOMENTS THERE'S NO LINGERING ON THE AGONY OF DETOX AS THERE WAS IN THE HARROWING DRUGADDICTION MOVIE CLEAN AND SOBER AND ALICE'S NASTY PERIODS ARE BRIEF THESE OCCUR WHEN SHE GETS SO DRUNK SHE HITS HER LITTLE GIRL IN THE FACE AND DURING REHABILITATION WHEN SHE SNEERS AT NONALCOHOLICS WHO HAVEN'T GONE THROUGH WHAT SHE HAS ESPECIALLY HER HUSBAND ALMOST EVERYONE IN THIS FILM IS EXTREMELY NICE EXCEPT FOR ALICE'S MEAN MOTHER WHO GETS BLAMED FOR A LOT AND THE FAMILY'S BABYSITTER AN ACERBIC YOUNG CHINESE WOMAN WHO TURNS OUT TO BE NICE TOO NICEST OF ALL IS MICHAEL ALICE'S HUSBAND PLAYED WITH MUCH SINCERITY BY MR GARCIA IT TURNS OUT THAT HIS NICENESS IS A PROBLEM HE'S SO BUSY TRYING TO MAKE ALICE FEEL OK THAT HE DOESN'T LISTEN TO WHAT SHE'S TRYING TO TELL HIM WE MIGHT HAVE FIGURED THIS OUT EVEN IF ALICE DIDN'T TELL HIM BUT OF COURSE SHE DOES THIS FILM SLAMDUNKS EVERYTHING SO FOR EXAMPLE AFTER MICHAEL DROPS ALICE AT THE DETOX CENTER IN THE COUNTRY THE SOUNDTRACK BLARES A SONG CALLED EVERYBODY HURTS THE MOVIE MAKERS DON'T ADDRESS THE ESSENTIAL PROBLEM CONFRONTING MICHAEL AND ALICE THAT'S BECAUSE THE SCREENWRITERS RONALD BASS AND AL FRANKEN ARE RESPONSIBLE FOR THIS PROBLEM ALICE AND MICHAEL ARE BORES THEY ARE INTERESTING ONLY BECAUSE ALICE IS AN ALCOHOLIC AND BRINGS GREAT PROBLEMS TO THEIR RELATIONSHIP AND THEIR YOUNG CHILDREN BUT AS CHARACTERS THEY'VE BEEN GIVEN NO INHERENT INTEREST AND NOTHING MUCH TO SAY UNTIL THEY LEARN THE LINGO OF 12STEP PROGRAMS THEN THEY HAVE PLENTY TO SAY ALL OF WHICH YOU'VE PROBABLY HEARD BY NOW ON OPRAH RED ROCK RIVER IS WONDERFULLY FREE OF SOCIAL RELEVANCE IT'S JUST A VERY GOOD MOVIE ONE OF THE FEW NEW PICTURES CALLING ITSELF A FILM NOIR THAT HAS THE HARDNOSED INTELLIGENCE AND DROLL CYNICISM OF THE REAL THING THE PLOT IS GLEEFULLY COMPLICATED IT INVOLVES AN OIL WORKER WITH A LOT OF BAD LUCK WHO'S LOOKING FOR A JOB FAR FROM HOME HE ENDS UP IN A SMALL TOWN IN WYOMING HIRED BY MISTAKE TO KILL A MAN'S WIFE IT GOES ON FROM THERE TWISTING AND TURNING WITH EXHILARATION BUT ALSO WITH LOGIC THE FILMMAKERS NEVER LOSE THEIR GRIP THE FILMMAKERS ARE A COUPLE OF YOUNGSTERS THE DAHL BROTHERS JOHN DAHL DIRECTED AND WROTE THE SCREENPLAY WITH HIS BROTHER RICK THEY SAY THEY SAW A LOT OF MOVIES WHEN THEY WERE GROWING UP IN MONTANA AND THEY MUST HAVE TAKEN GOOD MENTAL NOTES THEY'VE ALREADY MASTERED AN AMAZING NUMBER OF TRICKS AND MANAGED TO PUT A FRESH SPIN ON THE CLICHES THEY EVEN FOUND A WAY TO TO MAKE A CAR CHASE EXCITING THOUGH THEIR PICTURE HAS PLENTY OF SLY HUMOR THE DAHL BROTHERS DON'T OPERATE WITH THE COOL MOCKERY OF THE COEN BROTHERS WITHOUT IGNORING THE ABSURDITY OF WHAT THEY'VE UNLEASHED ONSCREEN THEY DON'T UNDERCUT THE STORY BY WINKING AT THE AUDIENCE TO LET THEM KNOW IT'S JUST A BIG JOKE THE ACTORS THEY BROUGHT IN FOR THE FILM ARE JUST PERFECT FOR THIS KIND OF SERIOUS COOL DENNIS HOPPER JT WALSH AND LARA FLYNN BOYLE NICOLAS CAGE WHO FINALLY LEARNED THAT LESS IS MORE IN HONEYMOON IN VEGAS GIVES A GREAT DEADPAN PERFORMANCE AS THE HONEST MAN THROWN IN WITH A BUNCH OF BAD PEOPLE VIDEO TIP HERE ARE THE CLASSICS OF ALCOHOLISM DRAMA THE LOST WEEKEND THE 1945 RAY MILLAND FILM ABOUT A FRUSTRATED WRITER WHOSE DRINKING LANDS HIM IN A DETOX WARD AND THE DAYS OF WINE AND ROSES THE 1962 JACK LEMMONLEE REMICK PICTURE ABOUT A MAN WHO MARRIES A WOMAN AND LURES HER INTO ALCOHOLISM IN THURSDAY'S FILM REVIEW THE TITLE OF THE NEW DAHL BROTHERS' MOVIE SHOULD HAVE BEEN RED ROCK WEST 9404280033 940428 LEISURE & ARTS BIRDWATCHING URBAN AVIAN ADVENTURE REDTAILED HAWK IN HARLEM BY MARIE WINN NEW YORK MEMORY GROWS FURTIVE IN THE MEMORABLE WORDS OF THE LATE GREAT WRITER AJ LIEBLING AS THE MEMORY OF WINTER'S WRETCHEDNESS SLINKS OUT OF THE MINDS OF THOSE WHO SUFFERED THE FURY OF 17 STORMS HERE IS AN ICY REMINDER THE INVITATION HAD GONE OUT TO SOME 90 FAMILIES LIVING NEAR CENTRAL PARK'S NORTH END HAVE YOU EVER SEEN A REDTAILED HAWK IN HARLEM YOU MIGHT IF YOU JOIN THE FAMILY BIRDWATCHING CLUB IT WENT ON TO OFFER FREE BIRDWATCHING WALKS AND ACTIVITIES FOR PARENTS AND CHILDREN AT THE DANA DISCOVERY CENTER THE PARK'S HANDSOME NEW FACILITY AT FIFTH AVENUE AND 110TH STREET TO THE GREAT DELIGHT OF THE CENTRAL PARK CONSERVANCY AND THE NEW YORK CITY AUDUBON SOCIETY JOINT SPONSORS OF THE CLUB MORE THAN 50 FAMILIES SIGNED UP THE FIRST MEETING WAS SET FOR SATURDAY JAN 8 BUT A FEW DAYS BEFORE REAL WINTER KICKED IN TEMPERATURES FELL TO THE TEENS AND 20S SEVERAL INCHES OF SNOW FELL ON FRIDAY CONCEALING A TREACHEROUS LAYER OF ICE ALREADY FORMED OVER MUCH OF THE PARK TO MAKE MATTERS WORSE A SLEETY RAIN POURED DOWN EARLY ON SATURDAY COATING THE SNOW WITH ANOTHER LAYER OF SHEER ICE STARR SAPHIR A POPULAR LEADER OF BIRD WALKS FOR THE NYC AUDUBON SOCIETY AND ONE OF THE CLUB'S ORGANIZERS SLIPPED AND FELL ON THE ICE ON HER WAY TO THE MEETING OF THE BIRDWATCHING CLUB SHE WAS FORCED TO TURN BACK THE IDEA FOR THE CLUB STARTED WITH MARIANNE CRAMER THE CENTRAL PARK CONSERVANCY'S OFFICIAL PARK PLANNER THE NORTH WOODS ON THE EDGE OF HARLEM FILLED WITH BIRD LIFE BUT LONG SHUNNED AS TOO DANGEROUS FOR FAMILY RECREATION HAD UNDERGONE EXTENSIVE RECLAMATION AND THE NEARBY DANA CENTER HOPED TO ENTICE NEIGHBORHOOD FAMILIES TO PARTICIPATE IN ITS EDUCATIONAL ACTIVITIES A NEW CONVERT TO BIRDWATCHING HERSELF MS CRAMER THOUGHT WHAT COULD BE BETTER THAN A BIRDWATCHING CLUB FOR THE ENTIRE FAMILY MS CRAMER CALLED NORMAN STOTZ A BOARD MEMBER AND PAST PRESIDENT OF THE NYC AUDUBON SOCIETY AND BEFORE ANYONE COULD SAY YELLOWBELLIED SAPSUCKER CONTRIBUTIONS STARTED POURING IN NIKON CO DONATED 30 PAIRS OF HIGHQUALITY NEW BINOCULARS FIVE NYC AUDUBON SOCIETY MEMBERS CHIPPED IN SERVICEABLE USED PAIRS HOUGHTON MIFFLIN CO SENT 20 COPIES OF ROGER TORY PETERSON'S FIRST GUIDE TO BIRDS AND A NUMBER OF EXPERT BIRDERS VOLUNTEERED TO INTRODUCE PARENTS AND CHILDREN TO THE JOYS OF AVIAN IDENTIFICATION EVERYTHING LOOKED PROMISING FOR THE BIRDWATCHING CLUB UNTIL THE WEATHER ACTED UP TWO SESSIONS WERE PLANNED FOR SATURDAY BY 9 AM A SIZABLE LITTLE CONGREGATION OF STALWARTS HAD GATHERED IN THE UPSTAIRS MEETING ROOM OF THE DANA CENTER IN CHARGE WAS MURIELLE PETERSDAVIS THE YOUNG DIRECTOR OF VISITOR CENTERS FOR THE CENTRAL PARK CONSERVANCY JESSICA RAMOS BELINDA DELIZ STAMATIA APOS AND MARIA STRACUZZI FOUR SHINYEYED CONSERVANCY INTERNS FROM THE HIGH SCHOOL OF ENVIRONMENTAL STUDIES WERE THERE ANDREW VLADECK A PERSONABLE URBAN RANGER IN A TEDDY ROOSEVELTTYPE UNIFORM WAS ALSO THERE FIVE MEMBERS OF THE BOARD OF THE NYC AUDUBON SOCIETY WERE THERE INCLUDING PETER MOTT A SCIENCE TEACHER AT THE FIELDSTON SCHOOL WITH MS SAPHIR OUT OF COMMISSION HE AGREED TO LEAD BOTH GROUPS THAT MORNING IF ANYONE SHOWED UP THAT IS IT WAS A LONG WAIT AT 1030 JUST ON TIME FOR THE SECOND SESSION THE FIRST MEMBERS OF THE BIRDWATCHING CLUB ARRIVED AT LAST HESTER WHO LOOKED TO BE ABOUT SEVEN YEARS OLD AND HER MOM FOLLOWED SHORTLY THEREAFTER BY MICHAEL AND JOHNATHAN AND ANOTHER MOM ON REQUEST JOHNATHAN'S NAME LABEL WAS CORRECTED TO INCLUDE THE FIRST H THE TWO BOYS WERE COUSINS AND THEY MIGHT HAVE BEEN SEVEN OR EIGHT THEY WERE EXTREMELY SHARP WHEN MR MOTT GAVE A LESSON ABOUT BINOCULAR USAGE BEFORE DISTRIBUTING THE PRECIOUS INSTRUMENTS IT WAS MICHAEL FOR INSTANCE WHO EXPLAINED QUITE ACCURATELY WHAT A FINGERPRINT IS A FINGERPRINT IS WHAT THE POLICE LOOK FOR WHEN THERE'S A MURDER HE DECLARED A FINGERPRINT IS MAINLY SOMETHING TO KEEP OFF THE LENSES OF GOOD BINOCULARS MR MOTT ADDED EMPHATICALLY AS HE HANDED OUT A PAIR TO EVERY MEMBER OF THE BIRDWATCHING CLUB DO WE GET TO KEEP THEM ASKED MICHAEL OR MAYBE IT WAS JOHNATHAN THE ANSWER THAT THE BINOCULARS WERE A LOAN FOR EACH MEETING OF THE CLUB WAS ACCEPTED PHILOSOPHICALLY THE NEXT ARRIVALS WERE EDGAR VANESSA CLARA DANILO AND MARCO AND A MOM FINALLY NAEEM THERE WERE NOW EIGHT CHILDREN AND FOUR MOMS ONE OF THEM AS IT HAPPENS MS PETERSDAVIS THE NEXT 20 MINUTES WERE DEVOTED TO ATTACHING STRAPS TO THE LITTLE SLOTS ON THE SIDES OF THE BINOCULARS A TASK THAT WAS QUITE BEYOND THE CAPABILITIES OF A NUMBER OF THE ADULTS PRESENT BUT WAS PERFORMED DEXTEROUSLY BY SEVERAL OF THE CHILDREN AFTER A FIRST LESSON IN FOCUSING THE BINOCULARS DURING WHICH MICHAEL AND JOHNATHAN WERE ENLISTED TO ENACT FLYING BIRDS AT A DISTANCE THE CLUB WAS READY TO TAKE TO THE OUTDOORS EVERYBODY RESTORED LAYERS OF CLOTHING AND MS PETERSDAVIS TEMPORARILY ABANDONED HER ROLE AS GROUP CHAIRMAN TO FIRMLY PULL A WARM CAP OVER NAEEM'S HEAD THEN THE GROUP WALKED TO THE EDGE OF HARLEM MEER A LARGE POND JUST A FEW STEPS FROM THE CENTER'S ENTRANCE IT WAS A HAZARDOUS JOURNEY BECAUSE OF THE ICE THAT WAS TO BE THE EXTENT OF THE DAY'S EXPEDITION A PRUDENT DECISION THERE ALL BINOCULARS WERE TRAINED ON THE AVAILABLE BIRDS WHICH NOT SURPRISINGLY WERE STARLINGS AND PIGEONS WHEN A SINGLE BLUE JAY JOINED THE BIRDS EVERYBODY OBSERVED ITS BLACK CHIN STRAP A LARGISH BIRD SAILED BY HIGH IN THE SKY AND PARENTS CHILDREN INTERNS AND AUDUBONERS POINTED THEIR GLASSES UPWARD TO FOLLOW ITS FLIGHT IS THAT AN EAGLE ASKED ONE OF THE JUNIOR BIRDWATCHERS NO IT IS A GULL ANSWERED MR MOTT THE CHARTER MEMBERS OF THE BIRDWATCHING CLUB WERE JUST ABOUT TO GO INDOORS FOR HOT CHOCOLATE AND THEY LOOKED CONTENTED EVEN A PIGEON OR A STARLING CAN BE A REVELATION WHEN MAGNIFIED EIGHT TIMES THROUGH AN OPTICAL LENS STILL IT MUST BE SAID THAT THESE WERE NOT EXACTLY THRILLPACKED ENCOUNTERS FOR KIDS WEANED ON BRONTOSAURS AND BIG BIRD AT THAT MOMENT A REALLY BIG BIRD SAILED INTO VIEW DANILO OR MAYBE IT WAS MARCO GAVE A YELL HEY IS THAT AN EAGLE ALL THE BIRDWATCHERS LET THEIR BINOCULARS HANG AROUND THEIR NECKS AND STARED UP WITH THEIR OWN TWO EYES IT'S A HAWK A REDTAILED HAWK EXCLAIMED MR MOTT WITH QUITE A LITTLE EXCITEMENT HIMSELF HOT IN PURSUIT OF A BLOCK OF PIGEONS THE HUGE RAPTOR CIRCLED RIGHT OVER THE BIRDWATCHERS THE PIGEONS WHIRLED AND CIRCLED IN A PANICKY CLOUD THE HAWK HERDED THE PIGEONS LIKE AN AERIAL COLLIE ROUNDING UP A FLOCK OF UNRULY SHEEP THEN THE DRAMA MOVED OUT OF SIGHT TO THE NORTH BEHIND A BUILDING A GREAT TEACHER SEIZES THE MOMENT AND MR MOTT PROCEEDED TO GIVE A GREAT LESSON IN BIRDWATCHING HE STRETCHED OUT HIS ARMS AT HIS SIDES AS IF HE WERE A BIRD IN FLIGHT HOLDING THEM THERE HE LET HIS HANDS DROP AT THE WRIST THAT'S A GULL IN FLIGHT THE WING TIPS GO DOWN HE SAID NOW ARMS STILL OUTSTRETCHED HE LIFTED HIS HANDS AT THE WRIST SO THAT HIS FINGERS POINTED UP AND HIS PALMS FACED OUTWARD THAT'S A HAWK IN FLIGHT THE WING TIPS GO UP THIS SIMPLE TRICK SERVED TO CLEAR UP AN AREA OF DIFFICULTY FOR ALMOST EVERYBODY THERE EVEN SOME EXPERIENCED BIRDERS UPSTAIRS AS THE INTERNS POURED HOT CHOCOLATE AND ADDED MARSHMALLOWS MR MOTT ASKED WHO WAS COMING BACK NEXT WEEK IT WAS NO SURPRISE WHEN ALL HANDS WENT UP FOR THE PROMISE HAD BEEN MAGNIFICENTLY FULFILLED EVERYONE HAD SEEN A REDTAILED HAWK IN HARLEM MS WINN IS A WRITER IN NEW YORK 9404280032 940428 BUSINESS BRIEF BRISTOLMYERS SQUIBB CO RIGHTS TO DIABETES DRUG ARE ACQUIRED FROM LIPHA BRISTOLMYERS SQUIBB CO NEW YORK SAID IT ACQUIRED US MARKETING RIGHTS TO GLUCOPHAGE A DRUG USED FOR THE TREATMENT OF DIABETES FROM FRENCH PHARMACEUTICAL COMPANY LIPHA SA TERMS OF THE PACT WEREN'T DISCLOSED THE GLUCOPHAGE BRAND OF METFORMIN HYDROCHLORIDE IS UNDER REVIEW BY THE FOOD AND DRUG ADMINISTRATION FOR THE TREATMENT OF NONINSULINDEPENDENT DIABETES MELLITUS OR TYPE II DIABETES THE MOST COMMON FORM OF THE DISEASE THE COMPANY SAID GLUCOPHAGE WHICH CONTROLS BLOOD SUGAR LEVELS WAS DEVELOPED IN THE US BY LIPHA'S SUBSIDIARY LIPHA PHARMACEUTICALS INC THE DRUG IS CURRENTLY AVAILABLE IN MOST MAJOR MARKETS OUTSIDE THE US IN THE FORM OF AN ORAL TREATMENT THE AGREEMENT WHICH TAKES EFFECT IMMEDIATELY ALSO PROVIDES FOR LIPHA TO GET MARKETING RIGHTS TO CERTAIN BRISTOLMYERS PRODUCTS IN SOME EUROPEAN TERRITORIES 9404280031 940428 BUSINESS BRIEF HARLEYSVILLE GROUP INC FIRSTPERIOD LOSS IS POSTED WINTER STORM CLAIMS CITED HARLEYSVILLE GROUP INC AN INSURANCE HOLDING COMPANY REPORTED A 5 MILLION FIRSTQUARTER LOSS CITING BIG CLAIMS FROM WINTERWEATHER DAMAGE THE LOSS EQUAL TO 39 CENTS A SHARE COMPARES WITH EARNINGS OF 45 MILLION OR 35 CENTS A SHARE IN THE YEAREARLIER QUARTER THE HARLEYSVILLE PABASED COMPANY SAID MOST OF THE CLAIMS STEMMED FROM SEVEN SPECIFIC STORMS DURING THE QUARTER THE LOSS COMES DESPITE A 19 GROWTH IN FIRSTQUARTER REVENUE TO 1326 MILLION FROM 111 MILLION A YEAR AGO 9404280030 940428 LEISURE & ARTS BOOKSHELF ENDANGERED SPECIES BY DAVID SHRIBMAN JOHN SHERWOOD WAS A FIGURE OF GREAT MYTH AND MYSTERY FOR THOSE OF US WHO WORKED AT THE OLD WASHINGTON STAR MORE THAN A DOZEN YEARS AGO HE CONTRIBUTED TO A FABLED COLUMN CALLED THE RAMBLER A NAME THAT FIT HIS HABITS AND HIS TEMPERAMENT AND HIS PIECES WERE FOR MANY YEARS SOME OF THE GREAT ORNAMENTS OF THE PAPER I NEVER KNEW HIM HE WAS ONE OF THOSE FIGURES WHOM I DARED NOT APPROACH BUT THIS MUCH I UNDERSTOOD HE KNEW MORE ABOUT THE ODD CORNERS OF MARYLAND THAN JUST ABOUT ANYONE ALIVE FOR YEARS HE HAD BEEN TURNING A SKEPTICAL EYE TOWARD MODERN NOTIONS OF PROGRESS AND HE FOUND SATISFACTION AND UTTERLY IRRESISTIBLE COPY IN WHAT HE CAME TO CALL ENDANGERED HUMAN SPECIES SO THE APPEARANCE THE OTHER DAY OF AN ELEGANT UNDERSTATED VOLUME BY THE NAME OF MARYLAND'S VANISHING LIVES JOHNS HOPKINS UNIVERSITY 232 PAGES 2995 TICKLED MY INTEREST I KNEW PRECISELY WHAT WOULD LIE INSIDE A COMBINATION BAEDEKER AND TIME CAPSULE A GUIDE TO THE MARYLAND AND THE AMERICA THAT IS FAST DISAPPEARING THE VICTIMS OF THE HIGHWAY THE CHAIN STORE THE FRANCHISE RESTAURANT THE BLUR OF WINDOWS DOS AND DISKS THIS IS A BOOK OF ESSAYS TOGETHER THEY ARE AN ELEGY TO A VANISHING WORLD AND IT IS A PICTURE BOOK THE PHOTOGRAPHS ARE BY EDWIN H REMSBERG AND THEY ARE IN BLACKANDWHITE THE WAY LIFE USED TO BE THEY ARE CLEAR VIVID AND EVOCATIVE THE WAY MEMORIES ARE SUPPOSED TO BE TOGETHER THE TWO MEN BRING US GLIMPSES OF THE FATHERANDSON SADOWSKI TUGBOAT TOWING CO OF FELLS POINT BALTIMORE OPERATORS OF ONE OF THE FEW REMAINING TUGS WITH A WORKING WOODEN WHEEL THE MEXICO FARMS GRASSSTRIP AIRPORT WITH TWO UNPAVED RUNWAYS BUT NO RADIO OR CONTROL TOWER THE ONEROOM SCHOOLHOUSE ON SMITH ISLAND WHOSE STUDENTS GRADUATE TO A SCHOOL BOAT AFTER SIXTH GRADE AND MORE I WAS NOT INTERESTED IN COLONIAL WILLIAMSBURGSTYLE RECREATIONS AND RESTORATIONS MR SHERWOOD SAYS I WANTED STUBBORN SURVIVORS LIVING TIME CAPSULES ANACHRONISMS TWILIGHT ZONES IN SHORT PEOPLE LIKE HIMSELF HE TRAVELED BY DATSUN BY FOOT AND BY BOAT SEARCHING FOR MEANINGFUL DUST AND CLUTTER AND HE FOUND IT HE ALSO FOUND CRAFTSPEOPLE WHO DIDN'T REALIZE THEY WERE ALSO ARTISTS BUT THIS IS A CELEBRATION NOT ONLY OF PEOPLE MOST OF THEM OLD BUT ALSO OF THINGS ALL OF THEM OLD THERE IS A ROADWAY BRIDGE OPERATED BY A 71YEAROLD WOMAN WHOSE PAY IS SO LOW THE STATE HASN'T BOTHERED BUILDING A MODERN BRIDGE TO MAKE HER TOIL UNNECESSARY THERE IS A HOTLEAD LINOTYPE MACHINE OF THE TYPE REVERED BY ALL OLD NEWS HOUNDS AND INVENTED AS LUCK WOULD HAVE IT IN BALTIMORE THERE ARE SPECIAL PLACES SUCH AS THE DOWNTOWN TEAROOM THAT IS IN ITS 12TH DECADE OF OPERATION BUSTLING EVEN THOUGH IT NO LONGER SERVES KIDNEYANDGIBLET STEWS THE CANNERY WHERE THE WOMEN SIT IN THEIR HAIRNETS PREPARING PEARLY WHITE HOMINY THE SMALLTOWN MOVIE HOUSE CALLED THE MARVA WHERE THE OWNER PLAYS THE ORGAN AND THE POPCORN IS STILL A DIME A BAG AND THE PERSONAL MUSEUM OPERATED BY A LONELY 87YEAROLD WHO HAS COLLECTED THINGS ALL HIS LIFE IN THE HOPE THAT YOU MIGHT WANT TO LOOK AT THEM FOR A FEW FLEETING MINUTES BUT THE MOST DOTING ATTENTION IS GIVEN TO THE CRAFTSPEOPLE SUCH AS THOSE WHO WORK AT G KRUG AND SON STILL DOING CUSTOM ORNAMENTAL IRONWORKING AND PERFORMING MAGIC IN METAL ROBERT LINKINS WHO OPERATES A ONEMAN STEAMPOWERED SAWMILL AND JOSEPH TURNER WHO MAKES BUTTONHOLES YOU WILL ALSO BE INTRODUCED TO ROBY AND ELMA CORNELIUS MASTER CRAFTERS OF THE BEATEN BISCUIT AN UPPER EASTERN SHORE SPECIALTY THE DOUGH IS BEATEN WITH A CLUB BEFORE BEING BAKED GOLDEN BROWN THIS IS A TRADITION AS MR SHERWOOD SAYS THAT IS NOT BEING TAKEN UP BY YOUNGER FOLKS AND SO WHAT IS THE POINT OF THIS TOUR OF CHOCOLATEFUDGECOOKIE BAKERIES FIVEANDDIME STORES DECOYCARVING ATELIERS AND WORKSHOPS WHERE OYSTER TONGSHAFTS ARE FASHIONED IN A TWOSTORY BARN PART OF THE ANSWER TO BE SURE IS ANTIQUARIANISM OF A MAUDLIN BUT HUMAN SORT SOMEDAY SOMEONE WILL TRY TO EXPLAIN TO MY GRANDCHILDREN THE COLORFUL WORLD OF NEWSPAPERING THAT WAS MY OWN VANISHING CRAFT BUT SOME OF THE ANSWER IS HISTORY THE WAY MEN AND WOMEN USED THEIR HANDS THEIR MACHINES AND THEIR MINDS TO MAKE A LIVING AND SHAPE THE WORLD INTO WHICH WE WERE BORN THE SKIPJACK THE FABLED OYSTERDREDGING VESSEL OF THE CHESAPEAKE FOR EXAMPLE IS MORE THAN A RELIC IT IS A PART OF MARYLAND'S STORY AND INDEED PART OF AMERICA'S MARITIME HERITAGE AND THE VERY SADDEST THING IS THAT WITH OYSTER STOCKS IN DECLINE THE ANCIENT FLEET OF SKIPJACKS AMPLY SALUTED IN THESE PAGES MAY EVEN OUTLAST THE OYSTERS BUT THERE WILL COME A TIME WHEN IT WILL NO LONGER BE POSSIBLE TO VISIT A PIPEORGAN PLANT TO OBSERVE A WEAVER AT WORK TO STOP BY A PLACE WHERE LOGS ARE TRANSFORMED INTO OAKSPLINT BASKETS TO WATCH A BLACKSMITH AT HIS ANVIL OR TO SEE A COOPER POP A BARREL TOGETHER MR SHERWOOD HAS SEEN ALL THIS EVEN IF YOU HAVEN'T HE HAS CELEBRATED IT AND IN A WAY HE HAS SAVED IT THIS BOOK IS HIS PERSONAL MUSEUM ASSEMBLED IN THE HOPE THAT YOU MIGHT WANT TO SPEND A FEW FLEETING MINUTES LOOKING AT THE TREASURES INSIDE MR SHRIBMAN IS WASHINGTON BUREAU CHIEF OF THE BOSTON GLOBE 9404280029 940428 BUSINESS BRIEF SCIOS NOVA INC NEW PACT FOR DIABETES DRUG IS RESTRUCTURED WITH PFIZER SCIOS NOVA INC MOUNTAIN VIEW CALIF SAID IT RESTRUCTURED ITS AGREEMENT WITH PFIZER INC TO DEVELOP THE DIABETES DRUG INSULINOTROPIN UNDER THE NEW AGREEMENT PFIZER'S CENTRAL RESEARCH UNIT IN GROTON CONN WILL MAKE MILESTONE DEVELOPMENT PAYMENTS TO SCIOS NOVA BASED ON CERTAIN TIMEAND EVENTBASED TERMS IN EXCHANGE PFIZER WILL REDUCE ITS FUTURE INSULINOTROPIN ROYALTY PAYMENTS AND WILL ADOPT CHANGES IN THE COMPANIES' MANUFACTURING AND MARKETING AGREEMENT THE COMPANIES DECLINED TO DISCLOSE ADDITIONAL DETAILS OF THE RESTRUCTURED AGREEMENT THE NEW AGREEMENT REPLACES ONE THAT HAD BEEN IN EFFECT FOR FIVE YEARS 9404280028 940428 WHO'S NEWS HORSHAM CORP HORSHAM CORP TORONTO GREGORY C WILKINS 38 YEARS OLD WAS NAMED PRESIDENT OF THIS COMPANY WITH INTERESTS IN OIL REFINING AND GOLD PRODUCTION MR WILKINS WAS EXECUTIVE DIRECTOR OFFICE OF THE CHAIRMAN AND SUCCEEDS PAUL MELNUK 39 WHO WILL REMAIN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF HORSHAM'S CLARK REFINING & MARKETING INC UNIT HORSHAM ALSO NAMED ROBERT B WICKHAM VICE PRESIDENT FINANCE MR WICKHAM 37 HAD BEEN VICE PRESIDENT FINANCE OF HORSHAM'S AMERICAN BARRICK RESOURCES CORP AND SUCCEEDS ERIC D SIGURDSON 41 WHO WILL ASSUME THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT OF CLARK 9404280027 940428 NORTHERN TELECOM PLANS TO SELL UNIT TO GE CAPITAL BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NORTHERN TELECOM LTD MADE FURTHER CUTBACKS IN OPERATIONS THAT IT CONSIDERS NONESSENTIAL AGREEING TO SELL ITS FINANCIAL SERVICES AND LEASING FIRM TO GE CAPITAL FOR 600 MILLION THE CANADIAN TELECOMMUNICATIONS EQUIPMENT SUPPLIER WHICH HAS BEEN STRUGGLING TO REVERSE A PRECIPITOUS SLIDE IN ITS US BUSINESS IN THE WAKE OF SEVERE SOFTWARE PROBLEMS SAID THE SALE WOULD ALLOW IT TO BETTER FOCUS ON ITS CORE US BUSINESS THE SALE IS EXPECTED TO GIVE NORTHERN'S CUSTOMERS GREATER CAPITAL RESOURCES AND FINANCING FLEXIBILITY GE IS FUNDED BETTER AND IT'S BETTER EQUIPPED TO FOCUS ON THE LEASING BUSINESS THAN WE ARE A NORTHERN SPOKESMAN SAID NORTHERN WILL GAIN GREATER FLEXIBILITY TOO IT PLANS TO USE THE PROCEEDS FOR REDUCING DEBT AND OTHER PURPOSES THAT IT DIDN'T SPECIFY FOR ITS MONEY GE CAPITAL A SUBSIDIARY OF GENERAL ELECTRIC CO WILL ADD NORTHERN'S ENTIRE 600 MILLION RECEIVABLES PORTFOLIO PLUS OTHER ASSETS TO ITS EVERGROWING DIVERSIFIED FINANCIAL SERVICES BUSINESS UNDER GE NORTHERN TELECOM FINANCE CORP WILL CONTINUE TO PROVIDE FINANCING AND LEASING SERVICES TO CUSTOMERS OF NORTHERN TELECOM AND ITS DISTRIBUTORS NORTHERN'S US UNIT NORTHERN TELECOM INC WILL BE FREER TO FOCUS ON ITS MAIN BUSINESS OF SELLING TELECOMMUNICATIONS SWITCHING AND TRANSMISSION EQUIPMENT TO REGIONAL BELL COMPANIES AND CORPORATIONS 9404280024 940402 HEALTH CINCINNATI FIRMS CUTTING COSTS WITH HOSPITALRANKING SYSTEM BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL FOUR MAJOR CINCINNATI EMPLOYERS ARE REDUCING HEALTHCARE COSTS WITH A NEW SYSTEM FOR COMPARING HOSPITALS ON THE BASIS OF THE COST AND QUALITY OF THEIR CARE THE COMPUTERIZED SYSTEM FOR THE FIRST TIME GIVES THE CITY'S HOSPITALS A COMMON WAY TO CLASSIFY PATIENTS BY THE SEVERITY OF THEIR ILLNESSES IT ENABLES THE HOSPITALS TO COMPARE THE COSTS AND EFFECTIVENESS OF TREATING PATIENTS AT VARIOUS LEVELS OF ILLNESS FOR CONDITIONS RANGING FROM HEART ATTACKS TO PNEUMONIA AND TO WORK WITH DOCTORS TO ROOT OUT INEFFICIENT PRACTICES WITH THE NEW SYSTEM HOSPITALS THAT TREAT A HIGH PORTION OF SEVERELY SICK HEART PATIENTS AND THUS HAVE HIGHER OVERALL COSTS CAN BE COMPARED WITH HOSPITALS THAT TEND TO TREAT LESSSICK PATIENTS AND CONSEQUENTLY HAVE LOWER OVERALL COSTS SUCH SOCALLED SEVERITYRATING SYSTEMS ARE BEING USED IN A GROWING NUMBER OF US HOSPITALS FOR INTERNAL QUALITY IMPROVEMENT AND COSTSAVINGS PROJECTS AND THEY ARE EXPECTED TO PLAY A CRUCIAL ROLE IN DEVELOPMENT OF RANKINGS THAT PURCHASERS AND CONSUMERS WILL USE TO SELECT HOSPITALS OR HEALTH PLANS CINCINNATI IS ONE OF A HANDFUL OF CITIES WHERE EMPLOYERS ARE SPONSORING COMMUNITYWIDE PROJECTS INVOLVING SEVERITYRATING SYSTEMS IN ORLANDO FLA FOR INSTANCE THE CENTRAL FLORIDA HEALTH CARE COALITION AND HOSPITALS THAT ACCOUNT FOR 90 OF THE BEDS IN THE AREA ARE REDUCING HEALTH COSTS WITH THE HELP OF A SEVERITYRATING SYSTEM CALLED MEDISGROUPS MARKETED BY MEDIQUAL SYSTEMS INC OF WESTBORO MASS AND THE CLEVELAND HEALTH QUALITY CHOICE PROJECT PLANS TO RELEASE A REPORT AT THE END OF THE MONTH THAT IS BASED IN PART ON A HOMEGROWN SYSTEM DEVELOPED AS PART OF AN INITIATIVE INVOLVING 31 HOSPITALS THE CINCINNATI PROJECT IS USING A SEVERITYRATING SYSTEM MARKETED BY IAMETER INC OF SAN MATEO CALIF BESIDES KROGER THE OTHER EMPLOYERS PARTICIPATING IN THE PROJECT ARE PROCTER & GAMBLE CO CINCINNATI BELL INC AND GENERAL ELECTRIC CO'S GE AIRCRAFT ENGINES UNIT TOGETHER THESE EMPLOYERS ACCOUNT FOR 10 TO 15 OF THE LOCAL HEALTHCARE MARKET WITH SUCH PURCHASING POWER THE COMPANIES PERSUADED ALL 14 GREATER CINCINNATI HOSPITALS TO USE THE SAME SYSTEM IN WHAT OFFICIALS DESCRIBE AS A COLLABORATIVE EFFORT TO IDENTIFY AND REDUCE WIDE VARIATIONS IN TREATMENT COSTS AND HOSPITAL STAYS FOR PATIENTS TREATED FOR THE SAME CONDITIONS BUT THE PROJECT IS ALREADY TURNING COMPETITIVE AS HOSPITALS SCRAMBLE TO IMPROVE PERFORMANCE WITH THE EXPECTATION THAT THE EMPLOYERS WILL BEGIN USING THE DATA TO MAKE PURCHASING DECISIONS LATER THIS YEAR THIS HAS MOTIVATED HOSPITALS AND DOCTORS TO LOOK FOR WAYS IN EVERY DIRECTION TO BRING DOWN COSTS AND MAINTAIN QUALITY SAYS WARREN C FALBERG PRESIDENT AND CHIEF EXECUTIVE OF JEWISH HOSPITALS OF CINCINNATI THE EMPLOYERS ARE LOOKING FOR PEOPLE WHO CAN PROVIDE EXCELLENT CARE AT THE LEAST POSSIBLE COST WHILE MANY OF THE HOSPITALS HAVE PREVIOUSLY TAKEN OTHER STEPS TO IMPROVE EFFICIENCY THE PROJECT LAUNCHED A YEAR AGO IS ALREADY YIELDING DIVIDENDS IAMETER OFFICIALS PRESENTED DATA TO HOSPITALS AND EMPLOYERS ON WEDNESDAY SHOWING THAT THE LENGTH OF THE AVERAGE HOSPITAL STAY IN 1992 DECLINED 10 FROM 1991 WHILE THE AVERAGE COST PER CASE FELL 5 OR A SAVING OF 350 PER ADMISSION THERE HAS BEEN IMPROVEMENT IN EFFICIENCIES ACROSS THE BOARD SAYS LAWRENCE J FRYE IAMETER'S PRESIDENT INDEED WHILE EMPLOYERS HAVEN'T YET USED THE DATA TO PURCHASE CARE THEY BELIEVE THE PROJECT HAS ALREADY PROMPTED HOSPITALS AND DOCTORS TO CHANGE PRACTICE PATTERNS AND ADOPT MORE COSTEFFECTIVE APPROACHES TO TREATING PATIENTS EVERY COMPANY IN THIS PARTNERSHIP HAD LOWER HEALTH COSTS LAST YEAR THAN THEY ANTICIPATED OR BUDGETED FOR SAID DONALD E HOFFMAN SENIOR VICE PRESIDENT FOR ADMINISTRATION AT CINCINNATI BELL IT WASN'T FOR ANY REASON OTHER THAN THE HOSPITALS MODIFIED THEIR BEHAVIOR PEREMPLOYEE HEALTH COSTS AT THE PHONE COMPANY FELL 5 MR HOFFMAN SAID THE SYSTEM GATHERS DATA FROM HOSPITAL RECORDS AND SEPARATES PATIENTS ACCORDING TO THEIR DIAGNOSIS AND ONE OF FIVE LEVELS OF SEVERITY AFTER ADJUSTING THE INFORMATION TO ACCOUNT FOR TREATMENT OF SICKER PATIENTS IT PLOTS THE PERFORMANCE OF BOTH HOSPITALS AND DOCTORS BY TWO MEASURES THE COST PER CASE AND THE LENGTH OF HOSPITAL STAY THE INDIVIDUAL HOSPITALS AND DOCTORS ARE IDENTIFIED ONLY BY LETTER SYMBOLS IN THE COMPARATIVE DATA GIVEN TO HOSPITALS BUT ADMINISTRATORS AND DOCTORS AT EACH HOSPITAL KNOW WHICH SYMBOL MARKS THEIR PERFORMANCE AND THEY CAN SEE HOW THEY RANK IN RELATION TO THE OTHERS THE ADMINISTRATORS MEDICAL DEPARTMENT HEADS AND DOCTORS USE THE INFORMATION TO ANALYZE COSTEFFECTIVE TREATMENT METHODS AND SEEK TO ADOPT THOSE APPROACHES AS STANDARD PRACTICE WHILE COSTCONTAINMENT STRATEGIES OFTEN RAISE CONCERNS THAT QUALITY WILL SUFFER PARTICIPANTS MAINTAIN THAT THE PROCESS OF STANDARDIZING MANY PROCEDURES ACTUALLY IMPROVES QUALITY BOTH HOSPITALS AND DOCTORS ARE BEGINNING TO MAKE CHANGES OFFICIALS SAID FOR INSTANCE ORTHOPEDIC DOCTORS AT SOME INSTITUTIONS ARE AGREEING TO USE JUST ONE OR TWO BRANDS OF ARTIFICIAL HIPS IN HIPREPLACEMENT OPERATIONS INSTEAD OF LETTING EACH DOCTOR PICK FROM AMONG MORE THAN A HALF DOZEN VERSIONS ON THE MARKET THIS GIVES A HOSPITAL THE CHANCE TO SAVE MONEY WITH VOLUME PURCHASES FROM ONE VENDOR AND IT HELPS SURGICAL TEAMS DEVELOP STANDARD TREATMENT PROTOCOLS FOR HIP PROCEDURES HOSPITALS ARE SETTING UP 24HOUR SOCIAL SERVICE TEAMS TO IMPROVE DISCHARGE PLANNING AND MAKE IT EASIER FOR WELL PATIENTS TO BE DISCHARGED ON SAY SATURDAY AFTERNOON INSTEAD OF WAITING UNTIL MONDAY MORNING AND BOTH HOSPITALS AND DOCTORS ARE AGREEING TO PERFORM ELECTIVE HEART PROCEDURES ON SATURDAYS A MOVE THAT CAN BY ITSELF REDUCE A HOSPITAL STAY BY A COUPLE OF DAYS WE'RE GOING TO HAVE TO GET OUT OF THIS ATTITUDE OF A FIVEDAY WEEK AT THE HOSPITAL SAID RICHARD STRUB DIRECTOR OF OBSTETRICS AND GYNECOLOGY AT CHRIST HOSPITAL AND HEAD OF THE INSTITUTION'S COMMITTEE ON THE IAMETER PROJECT HOSPITALS AND DOCTORS HAVE SOME RESERVATIONS ABOUT THE PROCESS FOR ONE IAMETER IS KEEPING ITS METHODOLOGY SECRET ANNOYING SOME DOCTORS WHO WANT TO UNDERSTAND MORE ABOUT THE PROCESS FOR ANOTHER VARIATIONS IN THE WAY HOSPITALS CODE THEIR BILLS AND RECORDS COULD AFFECT THE RESULTS AND HOSPITALS ARE WORRIED ABOUT THE EVENTUAL OUTCOME ONCE THE EMPLOYERS START USING THE DATA TO NEGOTIATE CONTRACTS WITH SPECIFIC INSTITUTIONS THE PROCESS IS EXPECTED TO PRODUCE MERGERS AND FORCE SOME HOSPITALS TO CURTAIL SERVICES THAT DON'T PERFORM WELL ENOUGH TO ATTRACT PATIENTS I DON'T THINK EVERYONE IS GOING TO SURVIVE IN THIS MARKETPLACE SAID JEWISH HOSPITALS' MR FALBERG BUT FEW DOUBT THAT THE STRATEGY EMPLOYERS HAVE ADOPTED IS THE FUTURE FOR HOSPITAL CARE SAYS JACK COOK PRESIDENT AND CHIEF EXECUTIVE OF CHRIST HOSPITAL THIS IS A BEGINNING STEP DOWN A ROAD THAT WE HAVE TO GO 9404280023 940428 BUSINESS BRIEF MARTIN MARIETTA IS SEEKING TO ACQUIRE TARGETS WITH 1 BILLION SALES OR MORE ATLANTA MARTIN MARIETTA CORP FRESH FROM LOSING A BID TO BUY GRUMMAN CORP SAID IT IS SCOUTING OTHER ACQUISITION TARGETS WITH SALES OF 1 BILLION OR MORE AND MIGHT CONSIDER NONDEFENSE COMPANIES AT A NEWS BRIEFING PRIOR TO TODAY'S ANNUAL MEETING HERE NORMAN L AUGUSTINE CHAIRMAN SAID THAT AS THE DEFENSEINDUSTRY SHAKEOUT CLAIMS LARGER COMPANIES MARTIN MARIETTA MUST SEEK SIZABLE MERGERS OR ACQUISITIONS TO GROW MR AUGUSTINE SAID THE BETHESDA MD COMPANY'S STRATEGY IS TO PURSUE DEFENSE COMPANIES WITH STRENGTH IN HIGHTECHNOLOGY AND INFORMATION SERVICES NONDEFENSE COMPANIES ARE CANDIDATES HE ADDED IF THEY'RE INVOLVED IN CLOSELY RELATED MARKETS WHERE THE PROJECTS ARE LARGE AND THE CUSTOMERS ARE LARGE AND THEY'RE INVOLVED IN SYSTEMS ENGINEERING STILL HE CONCEDED THAT MARTIN MARIETTA'S REFUSAL TO PURSUE HOSTILE TAKEOVERS COULD PUT THE COMPANY AT A DISADVANTAGE IN THE WAKE OF NORTHROP CORP'S 217 BILLION BID FOR GRUMMAN WHICH HANDILY TOPPED THE PRICE IN MARTIN MARIETTA'S MERGER AGREEMENT WITH GRUMMAN ANALYSTS SUGGESTED THAT THE DAYS OF NEGOTIATED DEALS AMONG ARMS MAKERS MAY BE OVER I SUSPECT THERE'S SOME TRUTH TO THAT MR AUGUSTINE SAID BUT WE THINK OUR POLICY IS RIGHT AMONG OPERATIONS THAT MIGHT FIT WITH MARTIN MARIETTA ANALYSTS HAVE SUGGESTED DALLASBASED ESYSTEMS INC AND THE AEROJET DIVISION OF GENCORP INC ANOTHER CANDIDATE COULD BE THE INFORMATION SYSTEMS AND SERVICES BUSINESSES OF WHAT WILL BECOME THE MERGED NORTHROP GRUMMAN CORP ON MAY 18 FOLLOWING HOLDER APPROVAL AFTER SELLING A PORTION OF ITS MARTIN MARIETTA MATERIALS INC UNIT IN A PUBLIC OFFERING MARTIN MARIETTA SAID IT HASN'T ANY PLANS TO DISPOSE OF OR SPIN OFF ANY OF ITS OTHER BUSINESSES SEPARATELY MOODY'S INVESTORS SERVICE INC DOWNGRADED TO A2 FROM A3 THE RATING ON 13 BILLION OF LONGTERM DEBT OF MARTIN MARIETTA TECHNOLOGIES INC A UNIT WHOSE DEBT IS GUARANTEED BY THE PARENT MOODY'S NOTED THE PARENT'S AGGRESSIVE ACQUISITION STRATEGY MARKED BY ITS RECENT PURCHASE OF GENERAL ELECTRIC CO'S AEROSPACE OPERATIONS AND ITS AGREEMENT TO BUY GENERAL DYNAMICS CORP'S SPACESYSTEMS DIVISION 9404280022 940428 TECHNOLOGY & HEALTH BELL ATLANTIC PLANS WIDER MULTIMEDIA PACT WITH ORACLE BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL BELL ATLANTIC CORP AND ORACLE CORP PLAN TO DEVELOP INTERACTIVE MULTIMEDIA SOFTWARE AND SERVICES FOR LARGE BUSINESSES EXPANDING A JANUARY MULTIMEDIA PACT THAT FOCUSED ON CONSUMERS BELL ATLANTIC THE PHILADELPHIABASED REGIONAL TELEPHONE COMPANY HAS BEEN WORKING WITH ORACLE A REDWOOD SHORES CALIF SOFTWARE COMPANY TO DEVELOP STARGAZER A FAMILY OF INTERACTIVE MULTIMEDIA SERVICES THE EXPANDED AGREEMENT FOCUSING ON BUSINESS CUSTOMERS IS EXPECTED TO BE ANNOUNCED TODAY BELL ATLANTIC HOPES ITS NEW MULTIMEDIA SERVICE WILL EXPAND THE USES OF ITS FULLSERVICE NETWORK WHICH OFFERS VOICE DATA AND VIDEO OVER PHONE LINES A RETAILER COULD FOR EXAMPLE SET UP A STORE IN BELL ATLANTIC'S ELECTRONIC SHOPPING MALL PART OF A BROADER HOMESHOPPING SERVICE THAT BELL ATLANTIC EVENTUALLY HOPES TO OFFER OVER PHONE LINES TO USERS' TELEVISION SETS THE BABY BELL HAS BEEN TESTING AN INTERACTIVE VIDEO SERVICE PIPED TO TV SETS WITH 400 OF ITS EMPLOYEES FOR THE PAST YEAR IN ARLINGTON VA PENDING APPROVAL FROM FEDERAL REGULATORS BELL ATLANTIC PLANS TO EXPAND THAT TRIAL TO 2000 HOMES THROUGHOUT NORTHERN VIRGINIA LATER THIS YEAR EVENTUALLY ROLLING OUT SERVICES THROUGHOUT ITS MIDATLANTIC TERRITORY JOHN PRISCO BELL ATLANTIC VICE PRESIDENT FOR MARKETING LARGE BUSINESS SERVICES SAID HE HASN'T SIGNED UP ANY LARGE BUSINESS CUSTOMERS FOR MULTIMEDIA SERVICES YET BUT HE SAID A NUMBER OF COMPANIES INCLUDING KAISER PERMANENTE THE HEALTH MAINTENANCE ORGANIZATION ARE LOOKING MR PRISCO SAID KAISER IS INTERESTED IN DEVELOPING INTERACTIVE KIOSKS THAT COULD BE PLACED IN DOCTOR'S OFFICES HEALTH CLINICS OR EVEN HOMES SEPARATELY BELL ATLANTIC MOBILE THE CELLULAR ARM OF BELL ATLANTIC PLANS TO ANNOUNCE TODAY THAT IT HAS LAUNCHED A NEW WIRELESS DATA SERVICE IN WASHINGTON BALTIMORE AND PITTSBURGH KNOWN AS CELLULAR DIGITAL PACKET DATA OR CDPD THE SERVICE SENDS DATA OVER THE REGULAR CELLULAR NETWORK IN SHORT BURSTS OR PACKETS BELL ATLANTIC HAS BEEN OFFERING CDPD SERVICES IN THOSE THREE MARKETS FOR THE PAST MONTH MAKING IT THE FIRST COMMERCIAL CDPD SERVICE IN THE COUNTRY BELL ATLANTIC PLANS TO INTRODUCE CDPD SERVICES IN MAJOR MARKETS ACROSS ITS TERRITORY BY THE END OF THE YEAR SAID BENJAMIN SCOTT CHIEF OPERATING OFFICER OF THE CELLULAR UNIT CDPD HAS BEEN LAUDED AS THE NEXT GREAT DEVELOPMENT IN WIRELESS DATA OFFERING TRANSMISSIONS THAT ARE SEAMLESS AND ERRORFREE BUT BECAUSE OF THE COMPLEXITY OF THE UNDERLYING TECHNOLOGY CDPD TO DATE HAS HAD TROUBLE GETTING OFF THE DRAWING BOARD AND INTO THE MARKETPLACE 9404280021 940428 WHO'S NEWS OCCIDENTAL PETROLEUM CORP OCCIDENTAL PETROLEUM CORP LOS ANGELES STEPHEN I CHAZEN WAS NAMED EXECUTIVE VICE PRESIDENT DEVELOPMENT A NEW POST AT THIS NATURAL RESOURCES AND CHEMICALS CONCERN MR CHAZEN 47 YEARS OLD JOINS OCCIDENTAL FROM MERRILL LYNCH & CO WHERE HE WAS MANAGING DIRECTOR AND SENIOR CORPORATE FINANCE OFFICER MR CHAZEN'S APPOINTMENT BRINGS TO EIGHT THE NUMBER OF OCCIDENTAL EXECUTIVE VICE PRESIDENTS 9404280020 940428 MONEYMARKET YIELDS IN TAXFREE FUNDS ROSE IN LATEST WEEK NEW YORK YIELDS ON TAXEXEMPT MONEYMARKET FUNDS ROSE NEARLY HALF A PERCENTAGE POINT IN THE LATEST WEEK MAKING THEM A BETTER INVESTMENT THAN TAXABLE MONEY FUNDS ON A TAXEQUIVALENT BASIS IN COMPARISON IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS ROSE TO 318 FROM 308 ACCORDING TO THE NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS ROSE TO 313 FROM 304 WHILE THE 30DAY SIMPLE YIELD ALSO ROSE A BIT TO 303 FROM 298 THE 30DAY COMPOUND YIELD INCREASED TO 308 FROM 302 TOTAL ASSETS OF 649 TAXABLE FUNDS FELL BY 278 BILLION TO 48154 BILLION IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT INDIVIDUAL INVESTORS TOOK OUT 233 BILLION AND INSTITUTIONS TOOK THE REMAINING 4569 MILLION TOTAL ASSETS OF 351 TAXEXEMPT FUNDS FELL BY 263 BILLION TO 11328 BILLION THE NEWSLETTER SAID INDIVIDUAL INVESTORS ACCOUNTED FOR 178 BILLION OF THE OUTFLOW WHILE INSTITUTIONAL INVESTORS PULLED OUT THE REMAINING 8553 BILLION AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 46 DAYS WHILE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY ALSO REMAINED STEADY AT 47 DAYS MONEY FUND REPORT IS PUBLISHED BY IBC/DONOGHUE INC A SUBSIDIARY OF IBC USA PUBLICATIONS INC 9404280018 940428 CARDINAL PLANS ACQUISITION DUBLIN OHIO CARDINAL HEALTH INC SAID IT WOULD ACQUIRE HUMISTONKEELING FOR ABOUT 40 MILLION CARDINAL IS THE NATION'S THIRDLARGEST PHARMACEUTICAL DISTRIBUTOR WITH ANNUAL REVENUE OF ABOUT 6 BILLION AFTER ITS FEBRUARY ACQUISITION OF WHITMIRE DISTRIBUTION CORP THE PRIVATELY HELD HUMISTONKEELING IS A CALUMET ILLBASED WHOLESALE DRUG DISTRIBUTOR WITH ANNUAL REVENUE OF ABOUT 830 MILLION THE ACQUISITION IS SCHEDULED FOR COMPLETION IN JULY AND IS SUBJECT TO REGULATORY APPROVAL 9404280017 940428 WHO'S NEWS HANDLER RESIGNS AS HEAD OF THINKING MACHINES CAMBRIDGE MASS SHERYL HANDLER THINKING MACHINES CORP'S CHAIRMAN AND COFOUNDER RESIGNED TO START A NEW BUSINESS MS HANDLER FOUNDED THE CLOSELY HELD SUPERCOMPUTER MAKER IN 1983 WITH DANNY HILLIS WHO TOOK A RADICALLY DIFFERENT APPROACH TO COMPUTER DESIGN KNOWN AS MASSIVELY PARALLEL PROCESSING THE MACHINES USE HUNDREDS OR THOUSANDS OF PROCESSORS AT ONCE TO UNRAVEL PROBLEMS MS HANDLER'S RESIGNATION FOLLOWS HER STEPPING DOWN AS CHIEF EXECUTIVE IN JANUARY 1993 AND THE NAMING OF WASHINGTON ATTORNEY RICHARD FISHMAN AS CHIEF EXECUTIVE IN SEPTEMBER MR FISHMAN HAS BEEN STEERING THE COMPANY BEYOND ITS BASE IN SCIENTIFIC AND RESEARCH APPLICATIONS INTO COMMERCIAL MARKETS I FEEL VERY GOOD ABOUT THE CURRENT STRATEGY AND MANAGEMENT MS HANDLER SAID I'D LIKE TO PUT ALL MY ENERGY INTO A NEW PROJECT MS HANDLER DECLINED TO DISCUSS THE NEW BUSINESS EXCEPT TO SAY IT IS A TECHNOLOGY COMPANY OUTSIDE THE SUPERCOMPUTER INDUSTRY 9404280016 940428 WHO'S NEWS FOSTER WHEELER CORP FOSTER WHEELER CORP CLINTON NJ DAVID J ROBERTS 50 YEARS OLD WAS ELECTED A DIRECTOR AND NAMED VICE CHAIRMAN OF THIS DESIGN ENGINEERING CONSTRUCTION AND ENVIRONMENTALSERVICES CONCERN SUCCEEDING HAROLD E KENNEDY 66 WHO RETIRED MR ROBERTS WHO HAD BEEN EXECUTIVE VICE PRESIDENT WILL CONTINUE AS CHIEF FINANCIAL OFFICER 9404280015 940428 ACURA NSX OWNERS SUE HONDA CLAIMING DEFECTIVE REAR TIRES A WALL STREET JOURNAL NEWS ROUNDUP A SUIT FILED IN CALIFORNIA AGAINST HONDA MOTOR CO CLAIMS THE AUTO MAKER'S ACURA NSX SPORTS CAR IS EQUIPPED WITH DEFECTIVE REAR TIRES THAT WEAR OUT AFTER AS FEW AS 3000 MILES POSING A SAFETY HAZARD THE SUIT WHICH SEEKS AN UNSPECIFIED AMOUNT OF DAMAGES CHARGES THAT HONDA EITHER KNEW RECKLESSLY DISREGARDED OR REASONABLY SHOULD HAVE KNOWN ABOUT THESE DEFECTS SINCE AT LEAST 1990 FEDERAL SAFETY INVESTIGATORS IN JANUARY OPENED AN INQUIRY INTO THE NSX SPORTS CAR AFTER RECEIVING COMPLAINTS FROM EIGHT OWNERS THAT THEIR REAR TIRES WORE OUT PREMATURELY THE COMPLAINTS INCLUDED TWO REPORTS OF INJURYCAUSING ACCIDENTS NEITHER ONE FATAL SAID THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION ABOUT 5000 NSXS ARE ON THE ROAD IN THE US REPLACEMENT TIRES AS WELL AS THE ORIGINAL TIRES MADE BY YOKOHAMA RUBBER CO'S YOKOHAMA TIRE CORP UNIT ALLEGEDLY WEAR DOWN QUICKLY THE SAFETY AGENCY SAID HONDA HOWEVER DENIES THAT THE TIRES ARE FAULTY THERE IS ABSOLUTELY NOTHING WRONG WITH THE TIRES ON THE NSX SAID HONDA SPOKESMAN MIKE SPENCER THIS IS THE LATEST OF SEVERAL LAWSUITS FILED AGAINST HONDA BECAUSE OF THE NSX'S REAR TIRES THE SUIT WAS FILED IN CALIFORNIA'S STATE SUPERIOR COURT THE ATTORNEYS FOR THE PLAINTIFFS WILLIAM S LERACH ALAN M MANSFIELD ARTIE BARAN AND FRANK J JANECEK JR OF THE SAN DIEGO FIRM OF MILBERG WEISS BERSHAD HYNES & LERACH HAVE ASKED THE COURT TO MAKE THE SUIT A CLASS ACTION THERE ARE NINE PLAINTIFFS IN THE CASE FROM ACROSS THE COUNTRY ACURA IS HONDA'S LUXURYCAR DIVISION 9404280014 940428 INTERNATIONAL ENTERPRISE OIL MAY TRY TO BUY RIVAL LASMO BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON ENTERPRISE OIL PLC ONE OF BRITAIN'S BIGGEST NORTH SEA ENERGYPRODUCTION COMPANIES SAID IT IS CONSIDERING A BID FOR RIVAL LASMO PLC NO FORMAL BID HAS BEEN LAUNCHED BUT ENTERPRISE'S BOARD CONFIRMED IN A STATEMENT YESTERDAY THAT IT IS CONSIDERING ITS OPTIONS WITH REGARD TO LASMO INCLUDING THE POSSIBILITY OF MAKING AN OFFER FOR THE COMPANY ENTERPRISE'S ANNOUNCEMENT WAS MADE AT THE INSTIGATION OF BRITAIN'S TAKEOVER PANEL AFTER SEVERAL DAYS OF MARKET SPECULATION ABOUT A POSSIBLE BID LASMO RESPONDED WITH A TERSE STATEMENT THAT ANY BID FROM ENTERPRISE WOULD BE ENTIRELY UNWELCOME IT SAID THERE HAD BEEN NO DISCUSSIONS BETWEEN THE TWO COMPANIES LASMO SHARES ROSE 105 PENCE 16 US CENTS TO 1625 PENCE VALUING THE COMPANY AT MORE THAN 15 BILLION 226 BILLION AS ANALYSTS WEIGHED THE PROSPECTS OF A COMPETING BID FROM SUCH POTENTIAL SUITORS AS ATLANTIC RICHFIELD CO BRITISH GAS PLC AND FRANCE'S ELF AQUITAINE SA ENTERPRISE SHARES FELL TWO PENCE TO 446 PENCE ENTERPRISE GAVE NO HINT OF THE POSSIBLE TERMS OF AN EVENTUAL BID BEYOND STATING THAT IT WOULD BE UNLIKELY TO VALUE LASMO AT A LEVEL IN EXCESS OF LASMO'S CLOSING PRICE ON TUESDAY ON THE LONDON STOCK EXCHANGE OF 152 PENCE PER SHARE BUT NEWS OF ENTERPRISE'S INTEREST IN LASMO WON A MIXED RESPONSE FROM ANALYSTS WITH SOME SAYING THEY REGARDED IT AS AN EXPENSIVE WAY FOR THE COMPANY TO EXPAND ITS OIL RESERVES CREATED IN 1984 OUT OF THE OIL INTERESTS OF BRITISH GAS ENTERPRISE HAS OPERATIONS IN THE NORTH SEA ITALY AND SOUTHEAST ASIA INCLUDING INDONESIA THE MAIN INTERESTS OF LASMO ARE IN THE NORTH SEA AND INDONESIA WHERE IT OWNS A STAKE IN THE BONTANG LIQUEFIEDNATURALGAS PLANT A SUCCESSFUL BID WOULD CREATE FAR AND AWAY THE WORLD'S LARGEST GROUP DEVOTED EXCLUSIVELY TO ENERGY EXPLORATION AND PRODUCTION WITH COMBINED ANNUAL REVENUES IN EXCESS OF 12 BILLION SET UP IN 1971 TO EXPLOIT BRITAIN'S NORTH SEA OIL RESERVES UNDER THE NAME OF LONDON & SCOTTISH MARINE OIL LASMO HAS BEEN BADLY HIT IN RECENT YEARS BY WEAK OIL PRICES IT HAD A LOSS OF 131 MILLION LAST YEAR ON REVENUE OF 678 MILLION ENTERPRISE BY CONTRAST HAS BOOSTED EARNINGS BY INCREASING PRODUCTION AND REPLACING OUTMODED EQUIPMENT IT REPORTED A 1993 PROFIT OF 95 MILLION ON REVENUE OF 546 MILLION 9404280013 940428 AMR SETS PACT TO BUY STAKE IN PWA UNIT DIVERSIFY ITS BUSINESSES FORT WORTH TEXAS AMR CORP CLOSED ITS 177 MILLION INVESTMENT IN CANADIAN AIRLINES THE LINCHPIN IN ITS ATTEMPT TO DIVERSIFY INTO NONAIRLINE BUSINESSES UNDER THE PACT AMR BOUGHT A THIRD OF PWA CORP'S CANADIAN OF CALGARY ALBERTA CANADIAN IN RETURN SIGNED A 20YEAR SERVICES PACT UNDER WHICH AMR WILL SUPPLY COMPUTER RESERVATIONS ACCOUNTING DATAPROCESSING AND PRICING SERVICES THAT CONTRACT COULD BRING AMR 2 BILLION IN REVENUE AMR SAID IT ESTIMATES THE FIRST FULL YEAR OF REVENUE WILL BE 115 MILLION THAT WILL BE A WELCOME ADDITION TO AMR WHICH IS CONTINUING ITS TRANSITION PLAN TO BEEF UP NONAIRLINE OPERATIONS AND TO ELIMINATE AMERICAN AIRLINES ROUTES AND FLIGHTS THAT DON'T MAKE MONEY DURING THE FIRST QUARTER AMERICAN HAS ELIMINATED JET SERVICE TO SIX CITIES AND STEPPED UP FURLOUGHS OF PILOTS AND MECHANICS LAST YEAR AMERICAN REMOVED 49 JETS FROM ITS FLEET AND THIS YEAR IT WILL RETIRE 45 MORE BRINGING THE NUMBER OF JETS IN ITS FLEET TO 644 AT THE END OF THIS YEAR FROM PWA'S PERSPECTIVE CLOSING THE TRANSACTION WITH AMR IS THE KEY ENABLING THE COMPANY TO RESTRUCTURE MUCH OF ITS 12 BILLION CANADIAN DOLLARS US8737 MILLION OF LONGTERM DEBT RIDING ON THE TRANSACTION WAS AN AGREEMENT BETWEEN PWA AND ITS SENIOR CREDITORS TO CONVERT OVER C700 MILLION OF DEBT INTO EQUITY EMPLOYEES OF THE COMPANY'S WHOLLY OWNED CANADIAN AIRLINES INTERNATIONAL LTD SUBSIDIARY ALSO HAD AGREED TO INJECT C200 MILLION OF ADDITIONAL NEW EQUITY INTO PWA THROUGH PAYROLL DEDUCTIONS SPREAD OVER FOUR YEARS IF THE AMR TRANSACTION WAS CONCLUDED LAST YEAR AMR REPORTED A NET LOSS OF 110 MILLION OR 223 A SHARE ON REVENUE OF 158 BILLION 9404280012 940428 FOREIGN EXCHANGE DOLLAR FALLS DESPITE GERMAN RATE CUT LACK OF JAPAN INTERVENTION SPURS DROP BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR FELL TO NEAR FOURWEEK LOWS AGAINST BOTH THE MARK AND THE YEN AFTER A MODERATE CLIMB ON A SURPRISINGLY LARGE GERMAN INTERESTRATE CUT FIZZLED CONFIRMING THE MARKET'S WORST FEARS ABOUT THE CURRENCY'S DIRECTION TRADING WAS UNEXPECTEDLY BRISK CONSIDERING THAT MOST US FINANCIAL MARKETS WERE CLOSED IN HONOR OF PRESIDENT NIXON WHO DIED FRIDAY TRADERS SAID THE DOLLAR'S FAILURE TO APPROACH AN EARLIER INTRADAY HIGH AGAINST THE MARK AFTER THE DEUTSCHE BUNDESBANK SLASHED ITS RATES ON REPOS OR SECURITIES REPURCHASE AGREEMENTS FORCED A SIGNIFICANT TEST OF LOWER GROUND THE GERMAN CENTRAL BANK CUT REPO RATES ITS MAIN INSTRUMENT FOR INFLUENCING MONEY MARKETS BY 11 BASIS POINTS TO 547 DURING EARLY EUROPEAN TRADING THE DOLLAR'S RETREAT AGAINST THE MARK ALSO PUSHED IT LOWER AGAINST THE YEN THAT MOVE WAS ACCELERATED WHEN AN EXPECTED BANK OF JAPAN INTERVENTION NEVER SURFACED TRADERS SAID THAT WHEN THE DOLLAR DROPPED BENEATH 1026 YEN WITHOUT SO MUCH AS A WHISPER FROM JAPAN'S CENTRAL BANK THE GREEN LIGHT WAS GIVEN FOR A FURTHER DOLLAR SELLOFF THE DOLLAR HIT INTRADAY LOWS OF 10223 YEN AND 16687 MARKS DURING AFTERNOON NEW YORK TRADINGLEVELS LAST SEEN MARCH 31 BEFORE TURNING HIGHER ON MILD SHORT COVERING LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16723 MARKS DOWN FROM 16765 MARKS LATE TUESDAY IN NEW YORK THE DOLLAR WAS CHANGING HANDS AT 10235 YEN DOWN FROM 1028 YEN STERLING WAS TRADING AT 1504 DOWN FROM 15065 ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10253 YEN AND AT 16733 MARKS SOME OBSERVERS SAW THE DOLLAR'S PLUNGE AS A CONTINUATION OF ITS WEAK SHOWING TUESDAY WHEN IT FELL AFTER THE CONFERENCE BOARD A NEWYORK BASED BUSINESSRESEARCH GROUP RELEASED A BULLISH CONSUMER CONFIDENCE REPORT FOR APRIL THE ANNOUNCEMENT PROMPTED FRESH ANXIETIES ABOUT US INFLATION HOWEVER AND THE DOLLAR FELL CONSUMER CONFIDENCE WAS SUCH A STRONG NUMBER AND WHEN THE DOLLAR FAILED TO BREAK ABOVE 1685 MARKS IT ONLY CONFIRMED THE TECHNICAL MOVE DOWN SAID STEVE JURY CHIEF DEALER AT THE UNION BANK OF SWITZERLAND IN NEW YORK TRADERS SAID THE SAME REASONING APPLIED YESTERDAY WHEN THE DOLLAR FAILED TO BENEFIT FROM THE LATEST CONVERGENCE OF US AND GERMAN INTEREST RATES THE 11BASISPOINT CUT IN THE REPO RATE WAS SIGNIFICANTLY DEEPER THAN THE FIVEBASISPOINT CUT THAT MUCH OF THE MARKET HAD ANTICIPATED FOREIGNEXCHANGE MARKETS DON'T APPEAR TO BE LOOKING AT INTEREST RATES AT ALL MR JURY SAID POINTING TO THE SHARP FALL IN THE DOLLAR SINCE THE US FEDERAL RESERVE STARTED TO PUSH INTEREST RATES HIGHER THE DOLLAR TRADED AT AN INTRADAY HIGH OF 1764 MARKS ON FEB 4 THE DAY OF THE FIRST OF THREE RECENT FED RATE INCREASES TRADERS SAID DOLLARMARK WEAKNESS CONTRIBUTED TO DOLLARYEN WEAKNESS ESPECIALLY AFTER THE BANK OF JAPAN FAILED TO SUPPORT THE DOLLAR IN NORTH AMERICAN DEALINGS AFTER HAVING BEEN SIGHTED EARLIER DURING ASIAN TRADING IT REALLY SEEMS STRANGE THAT THERE WAS NO INTERVENTION MR JURY SAID FURTHER CONTRIBUTING TO THE WORSENING DOLLAR SENTIMENT ARE THE POLITICAL DIFFICULTIES FACED BY NEWLY INSTALLED JAPANESE PRIME MINISTER TSUTOMU HATA SAID IRENE LANGLOIS SENIOR CUSTOMER DEALER AT BANK OF TOKYO IN NEW YORK POLITICAL INSTABILITY IS A BIT OF A FACTOR SHE SAID IT LOOKS LIKE HATA MIGHT END UP WITH A MINORITY RULING GOVERNMENT IN WHICH NOTHING WILL GET DONE WITH THE DOLLAR'S FUTURE AGAINST THE YEN RIDING ON TRADE ISSUES A FRACTIOUS JAPANESE GOVERNMENT UNABLE TO COME TOGETHER TO SLASH THE NATION'S TRADE SURPLUS CAN ONLY PUSH THE DOLLAR LOWER TRADERS SAID 9404280011 940428 TELMEX POSTS PLUNGE OF 14 IN NET INCOME FOR THE FIRST QUARTER MEXICO CITY TELEFONOS DE MEXICO SA THE GIANT MEXICAN TELEPHONE MONOPOLY HAD A 14 DECLINE IN NET EARNINGS IN THE FIRST QUARTER MAINLY BECAUSE OF A SHARP DECLINE IN THE PESO'S VALUE AGAINST THE DOLLAR TELMEX LATE WEDNESDAY REPORTED NET INCOME FOR THE QUARTER OF 185 BILLION PESOS 5606 MILLION AT YESTERDAY'S FLOATING EXCHANGE RATE DOWN FROM 2161 BILLION PESOS IN THE SAME PERIOD A YEAR EARLIER ON A PERSHARE BASIS THE PHONE COMPANY REPORTED EARNINGS OF 0175 PESOS COMPARED WITH 020 PESOS A SHARE IN THE SAME PERIOD A YEAR EARLIER RICARDO PEON ANALYST AT BARING RESEARCH HERE SAID THE EARNINGS WERE SLIGHTLY DISAPPOINTING BECAUSE BARING HAD FIGURED THAT TELMEX HAD HEDGED ITS FOREIGNEXCHANGE RISK MORE AGGRESSIVELY TELMEX'S EARNINGS ARE THE MOST IMPORTANT QUARTERLY EVENT ON MEXICO'S STOCK EXCHANGE BECAUSE THE STOCK REPRESENTS ABOUT ONETHIRD OF THE MARKET'S CAPITALIZATION MEXICAN ACCOUNTING RULES SAY THAT A COMPANY WITH DEBT IN DOLLARS SUCH AS TELMEX MUST RECALCULATE THE PESO VALUE OF THAT DEBT FOR ITS QUARTERLY INCOME AND BALANCE SHEET STATEMENTS SINCE THE PESO FELL 83 AGAINST THE DOLLAR IN THE FIRST QUARTER THE DOLLAR DEBT OF COMPANIES ROSE IN PESO TERMS COMPANIES HERE ACCOUNT FOR THIS AS A FOREIGNEXCHANGE LOSS THE PESO'S DECLINE RESULTED IN A 718 MILLION PESO FOREIGNEXCHANGE LOSS FOR TELMEX IN THE QUARTER ANALYSTS EXPECTED A LOSS OF 500 MILLION TELMEX'S NET SALES ROSE 13 TO 663 BILLION PESOS WHILE OPERATING EARNINGS WERE ALSO UP 13 TO 294 BILLION PESOS 9404280010 940428 TECHNOLOGY BRIEF NYNEX CORP JOINT CHINA STUDY TO FOCUS ON COMMUNICATION NETWORK NYNEX CORP WHITE PLAINS NY SAID IT AND CHINA'S MINISTRY OF ELECTRONICS INDUSTRY WILL JOINTLY STUDY THE FEASIBILITY OF CONNECTING THE COUNTRY'S VARIOUS EXISTING TELECOMMUNICATIONS NETWORKS THE REGIONAL PHONE COMPANY SAID THE STUDY ALSO WILL EXAMINE THE FORMATION OF A JOINT VENTURE TO HELP PLAN A SECOND NATIONAL TELECOMMUNICATIONS NETWORK IN CHINA LIANTONG A GROUP FORMED BY CHINA'S MINISTRIES OF ELECTRONICS RAILS AND POWER HAS BEEN TAPPED TO BUILD A SECOND NETWORK THE PRIMARY NETWORK IS OPERATED BY CHINA'S MINISTRY OF POSTS AND TELECOMMUNICATIONS OTHER COMPANIES HAVE BEEN FIGHTING FOR CHUNKS OF THE GIANT CHINA TELECOMMUNICATIONS MARKET AT&T CORP AND CANADA'S NORTHERN TELECOM LTD HAVE ALREADY SIGNED AGREEMENTS TO SUPPLY PHONE GEAR FOR THE CHINESE MARKET 9404280009 940428 TECHNOLOGY BRIEF INTEGRATED DEVICE TECHNOLOGY STRONG SALES LED TO SURGE IN FISCAL 4THQUARTER PROFIT INTEGRATED DEVICE TECHNOLOGY SANTA CLARA CALIF SAID STRONG DOMESTIC AND EUROPEAN SALES DROVE FISCAL FOURTHQUARTER PROFIT UP MORE THAN SIXFOLD TOPPING ANALYSTS' EXPECTATIONS THE CHIP MAKER SAID EARNINGS IN THE QUARTER ENDED APRIL 3 WERE 162 MILLION OR 45 CENTS A SHARE UP FROM 25 MILLION OR EIGHT CENTS A SHARE A YEAR EARLIER REVENUE INCREASED 43 TO 92 MILLION WE OBSERVED VERY STRONG GROWTH DOMESTICALLY PARTICULARLY THROUGH THE US DISTRIBUTION CHANNEL SAID LEN PERHAM IDT'S PRESIDENT AND CHIEF EXECUTIVE OFFICER HE SAID IDT'S GROWTH IN EUROPE DURING THE PERIOD WAS EXCEPTIONAL FOR ALL OF FISCAL 1994 IDT EARNED 402 MILLION OR 121 A SHARE ON REVENUE OF 3305 MILLION IN THE PRECEDING YEAR IT EARNED 53 MILLION OR 18 CENTS A SHARE ON REVENUE OF 2363 MILLION 9404280008 940428 BUSINESS BRIEF TIDEWATER INC CHARGE OF 75 MILLION SET FOR THE FISCAL 4TH QUARTER TIDEWATER INC SAID IT WILL REPORT A FISCAL FOURTHQUARTER CHARGE OF 75 MILLION FROM REDEMPTION OF ITS 7 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2010 THE NEW ORLEANSBASED ENERGYSERVICES CONCERN'S FOURTH PERIOD ENDED MARCH 31 THE REDEMPTION ELIMINATES ALL OF TIDEWATER'S DEBT EXCEPT FOR 47 MILLION IN CAPITALIZEDLEASE OBLIGATIONS THE COMPANY SAID TIDEWATER ADDED THAT IT WILL EXTEND THE DEADLINE FOR ITS COMMON STOCK BUYBACK PROGRAM TO MAY 3 TIDEWATER SAID ABOUT 550 ODDLOT SHAREHOLDERS HAVE SOLD ABOUT 12652 SHARES AT AN AVERAGE PRICE OF 2150 EACH AS OF DEC 31 THE COMPANY HAD 533 MILLION COMMON SHARES OUTSTANDING 9404280007 940428 ADELPHIA EXTENDS OFFER DEADLINE COUNDERSPORT PA ADELPHIA COMMUNICATIONS CORP SAID THAT DUE TO THE CLOSURE OF FINANCIAL MARKETS IN MEMORY OF RICHARD NIXON IT HAS EXTENDED ITS EXCHANGE OFFER THE EXPIRATION DATE FOR THE OFFER HAS BEEN EXTENDED TO 5 PM TOMORROW ADELPHIA IS OFFERING TO EXCHANGE NEW 95 SENIOR PAYINKIND NOTES DUE 2004 SERIES B WHICH ARE REGISTERED UNDER THE SECURITIES ACT OF 1933 FOR ITS OUTSTANDING 95 SENIOR PAYINKIND NOTES DUE 2004 SERIES A WHICH WERE PRIVATELY PLACED TO QUALIFIED INSTITUTIONAL INVESTORS ADELPHIA SAID ABOUT 66 OF THE 95 SENIOR PAYINKIND NOTES DUE 2004 SERIES A HAD BEEN TENDERED FOR EXCHANGE AS OF TUESDAY THE EXCHANGE AGENT FOR THE OFFER IS BANK OF MONTREAL TRUST CO 9404280006 940428 INTERNATIONAL JAPANESE VEHICLE EXPORTS FALL TOKYO JAPAN'S EXPORTS OF CARS TRUCKS AND BUSES FELL 25 IN MARCH FROM THE SAME PERIOD A YEAR EARLIER TO 424901 UNITS THE JAPAN AUTOMOBILE MANUFACTURERS' ASSOCIATION ANNOUNCED A SPOKESMAN FOR THE INDUSTRY GROUP SAID THAT THE DOWNWARD TREND IN EXPORTS IS UNLIKELY TO CHANGE IN THE NEAR FUTURE CITING FACTORS SUCH AS THE APPRECIATED YEN AND INCREASED OVERSEAS PRODUCTION 9404280005 940428 DELTA TO ANNOUNCE PLANS FOR OVERHAUL IN THE US ATLANTA DELTA AIR LINES IS EXPECTED TO ANNOUNCE AS EARLY AS TODAY PLANS TO OVERHAUL ITS DOMESTIC OPERATIONS THE PLAN DUBBED PROJECT NORTH AMERICA IS PART OF AN AIRLINEWIDE OVERHAUL TO RETURN TO PROFITABILITY THIS YEAR DELTA REVAMPED ITS TRANSATLANTIC SYSTEM BY PULLING OUT OF SOME MARKETS ENTERING CODESHARING OPERATIONS WITH FOREIGN AIRLINES IN OTHER MARKETS AND REORGANIZING ITS HUB IN FRANKFURT JUST HOW FAR DELTA PLANS TO GO IN ITS DOMESTIC EFFORTS ISN'T CLEAR ALREADY THE AIRLINE HAS CEDED SOME JET SERVICE AT ITS DALLAS/FORT WORTH HUB TO ITS REGIONAL AIRLINE PARTNER THERE AND DELTA HAS SAID IT IS LOOKING INTO STARTING A LOWCOST SERVICE SIMILAR TO RIVALS DELTA MANAGEMENT IS EXPECTED TO PRESENT ITS PLAN TO THE COMPANY'S BOARD THIS MORNING AND DELTA CHAIRMAN RONALD W ALLEN IS SCHEDULED TO BRIEF THE LEADERSHIP OF ITS PILOTS UNION IMMEDIATELY AFTER THE AIRLINE ALSO WILL RELEASE TODAY ITS RESULTS FOR THE FISCAL THIRD QUARTER ENDED MARCH 31 9404280004 940428 YOUR MONEY MATTERS MARKETTIMING ADVISERS HAVE SPOTTY RECORD FOR RECENT YEARS BY KAREN SLATER DAMATO STAFF REPORTER OF THE WALL STREET JOURNAL WOULDN'T IT BE GREAT IF SOMEONE HAD TOLD YOU TO GET OUT OF THE STOCK MARKET BEFORE PRICES STARTED TUMBLING IN FEBRUARY WOULDN'T IT BE NICE TO HAVE THE WISE COUNSEL OF AN EXPERT WHO COULD TELL YOU WHEN IT'S SAFE TO BUY THAT'S THE ALLURE OF MARKETTIMING NEWSLETTERS THOUSANDS OF INVESTORS BUY THESE PUBLICATIONS WHICH CAN COST 150 OR MORE A YEAR HOPING TO GET AN EDGE IN TURBULENT TIMES LIKE THESE UNFORTUNATELY THE RECENT RECORD OF THESE NEWSLETTERS ONLY ADDS FUEL TO THE LONGSTANDING DEBATE ABOUT WHETHER MARKET TIMING WORKS MANY TIMING LETTERS WERE NEGATIVE ON US STOCKS WHEN EQUITY PRICES BEGAN TO TUMBLE IN EARLY FEBRUARY BUT THAT WASN'T ANYTHING NEW OF THE 90 OR SO TIMING LETTERS FOLLOWED BY TIMER DIGEST A GREENWICH CONN NEWSLETTER ABOUT 55 TO 60 WERE BEARISH THROUGH MUCH OF LAST YEAR SAYS EDITOR JIM SCHMIDT MEANWHILE STOCK PRICES CONTINUED RISING SMARTLY SOME OF THE ADVISERS BECAME BEARISH OBVIOUSLY A LITTLE TOO SOON SAYS MR SCHMIDT SOME OTHER NEWSLETTERS ADVISED READERS TO MOVE OUT OF STOCKS AND STOCK FUNDS ONLY AFTER THE MARKET WAS ALREADY DOWN SIGNIFICANTLY FOR INSTANCE A SELL SIGNAL WAS GIVEN MARCH 30 BY FABIANS' INVESTMENT RESOURCE A WIDELY READ FUNDTIMING LETTER THAT WAS PREVIOUSLY CALLED TELEPHONE SWITCH NEWSLETTER BY THEN THOUGH THE MARKET WAS OFF 75 FROM ITS PEAK AS MEASURED BY STANDARD AND POOR'S 500STOCK INDEX ANOTHER FUNDORIENTED LETTER THE CHARTIST MUTUAL FUND TIMER GAVE A SELL SIGNAL A FEW DAYS LATER AT A SIMILAR LEVEL ON THE S&P EDITORS DOUG FABIAN OF FABIANS' AND DAN SULLIVAN OF THE CHARTIST OFFER NO APOLOGIES THEIR TIMING SYSTEMS ARE DESIGNED TO FOLLOW TRENDS ONCE THEY ARE ESTABLISHED THE TWO SAY AND THOSE SELL SIGNALS WILL LOOK GREAT IF THE MARKET REALLY CRASHES MY LONGTERM MODEL SAYS THE BULL MARKET IS OVER BUT NOBODY REALLY KNOWS MR SULLIVAN REMARKS THE TIMING ADVICE DISHED OUT BY MOST NEWSLETTERS LOOKS LACKLUSTER IN PERFORMANCE FIGURES COMPILED BY THE HULBERT FINANCIAL DIGEST AN ALEXANDRIA VA NEWSLETTER MANY TIMING LETTERS AVOIDED THE MARKET DOWNTURN OF THE FIRST QUARTER BUT THE VAST MAJORITY MADE TIMING CALLS DURING THE PAST FIVE YEARS THAT FAILED TO BEAT A SIMPLE BUYANDHOLD STRATEGY THE HULBERT ANALYSIS ASSUMES INVESTORS EARNED THE WILSHIRE 5000 RETURN WHEN THE LETTERS WERE BULLISH ON STOCKS MARK HULBERT EDITOR OF THE NEWSLETTERTRACKING NEWSLETTER SAYS IN HIS CURRENT ISSUE THAT MANY OF THE LETTERS THAT DID WELL IN THE FIRST QUARTER HAD BEEN OUT OF THE MARKET FOR MONTHS OR EVEN YEARS INVESTORS WHO FOLLOWED THE ADVICE OF THOSE NEWSLETTERS PAID A HEAVY PRICE FOR BEING RIGHT DURING THE CORRECTION HE WRITES CONSIDER ROBERT PRECHTER'S ELLIOTT WAVE THEORIST A GAINESVILLE GA NEWSLETTER THAT HAS BEEN BEARISH ON US STOCKS FOR SEVERAL YEARS THE LETTER'S FIRSTQUARTER ADVICE PRODUCED A 1 GAIN FOR INVESTORS SITTING IN CASH AND A 6 GAIN FOR THOSE WHO OPTED TO SELL STOCKS SHORT OR BET THAT PRICES WOULD FALL ACCORDING TO THE HULBERT TIMING SCOREBOARD BUT DURING THE PAST FIVE YEARS THE HULBERT LETTER FIGURES MR PRECHTER'S TIMING CALLS PRODUCED EITHER A WEAK 22 GAIN FOR THOSE WHO SAT OUT BEARISH PERIODS IN CASH OR A 62 LOSS FOR SHORTSELLERS DAVID A ALLMAN DIRECTOR OF RESEARCH FOR THE PRECHTER LETTER SAYS MR PRECHTER'S POSITION HAS BEEN THAT THERE ARE BETTER PLACES TO PUT YOUR MONEY THAN US STOCK INDEXES LAST YEAR HE SAYS THE LETTER DIRECTED READERS TO STRONG PROFITS IN SILVERMINING STOCKS IN ANY EVENT INVESTORS WHO PERUSE TIMING NEWSLETTERS FOR GUIDANCE IN THIS DIFFICULT MARKET WILL FIND SOME VERY VARIED AND SOMETIMES CONTRADICTORY ADVICE HERE'S A LOOK AT THE RECENT TIMING CALLS AND CURRENT THINKING OF A VERY UNSCIENTIFIC SAMPLING OF FIVE ROBERT S MORROW HIGH TECH GROWTH FORECASTER HIS NEWSLETTER IS A TEENY THING HE SAYS WITH FEWER THAN 300 SUBSCRIBERS BUT MR MORROW OF BRADENTON FLA CURRENTLY HAS ONE OF THE BEST RECORDS AMONG TIMERS WHO TRY TO IDENTIFY LONGTERM TRENDS SAYS TIMER DIGEST AFTER BEING BULLISH SINCE 1990 HE ADVISED SUBSCRIBERS IN HIS JAN 19 ISSUE TO TRIM THEIR STOCK EXPOSURE TO 25 FROM 75 OF THEIR PORTFOLIOS MR MORROW SAYS HE ANALYZES STOCKMARKET PATTERNS USING THE SAME TYPES OF MATHEMATICAL APPROACHES HE USED IN AN EARLIER CAREER IN INDUSTRIAL VIBRATION ANALYSIS THE END OF THE BEAR MARKET WILL BE IN THE FOURTH QUARTER OF THIS YEAR HE PREDICTS WITH THE S&P 500 BETWEEN 350 AND 400 AND THE DOW JONES INDUSTRIAL AVERAGE BETWEEN 2900 AND 3300 ROBERT J BRINKER MARKETIMER BULLISH SINCE 1990 THIS COCOA BEACH FLA ADVISER TOLD SUBSCRIBERS IN HIS APRIL 9 ISSUE TO HANG ONTO THEIR STOCKS AND CONSIDER BUYING MORE IF AND WHEN THE DOW WAS IN THE 34253625 RANGE AS IT WAS FOR A FEW DAYS IN LATE APRIL THE NEWSLETTER SAID THE CONSIDERABLE BEARISHNESS OF INVESTMENT ADVISERS WAS ONE CONTRARY INDICATOR THAT THE MARKET STILL HAD FURTHER TO RISE WE HAVE RIDDEN THIS BULL MARKET AND WE THINK THE MARKET REMAINS IN A FAVORABLE LONGTERM TREND HE SAYS WE THINK IT'S A MISTAKE TO BE JUMPING IN AND OUT OF A BULL MARKET DOUG FABIAN FABIANS' INVESTMENT RESOURCE MR FABIAN SAYS HIS HUNTINGTON BEACH CALIF LETTER HAS 35000 SUBSCRIBERS WHO MOVE ABOUT 2 BILLION INTO AND OUT OF STOCK FUNDS IN ACCORDANCE WITH THE LETTER'S MECHANICALTIMING SYSTEM A SELL SIGNAL WAS ISSUED AT THE END OF MARCH WHEN BOTH THE LETTER'S OWN MUTUALFUND INDEX AND THE DOW JONES 65STOCK COMPOSITE INDEX FELL BELOW THEIR RESPECTIVE 39WEEK MOVING AVERAGES THE FABIAN SYSTEM HAD INVESTORS IN THE STOCK MARKET SINCE NOVEMBER 1992 THE AIM IS TO AVOID BEARMARKET DECLINES BUT TAKE FROM THE MARKET 80 OF ANY MAJOR UP MOVE MR FABIAN SAYS JAMES DINES THE DINES LETTER AFTER BEING BEARISH ON MOST US STOCKS THROUGH ALL OF LAST YEAR MR DINES GOT THE DECLINE HE WAS WAITING FOR AN APRIL 4 BULLETIN TO SUBSCRIBERS SAID THAT DAY'S STEEP PLUNGE CONFIRMS THAT WE ARE NOW IN A MAJOR BEAR MARKET THE BULLETIN ALSO ADVISED SHORTTERM TRADERS TO BUY STOCKS TO PROFIT ON A DEADCAT BOUNCE BEAR RALLY MR DINES BASED IN BELVEDERE CALIF SAYS HE IS LOOKING FOR THE DOW TO REBOUND TO BETWEEN 3750 AND 3850 THIS SPRING OR SUMMER THAT WILL BE A FINAL OPPORTUNITY TO GET OUT HE SAYS BEFORE A VERY SEVERE DECLINE SOMEWHERE THIS YEAR DAN SULLIVAN THE CHARTIST MUTUAL FUND TIMER MR SULLIVAN'S TRENDFOLLOWING MODEL HAD ADVISED SUBSCRIBERS TO BE FULLY INVESTED IN STOCK FUNDS FROM JANUARY 1991 THROUGH EARLY APRIL THERE WAS A LUCKY BREAK AT THE END OF THAT HOLDING PERIOD WHILE THE SELL SIGNAL WAS GENERATED APRIL 4 THE DAY OF A BIG MARKET DROP SUBSCRIBERS ACTUALLY SOLD THE NEXT DAY IN A STRONG RALLY A BUYANDHOLD STRATEGY USUALLY BEATS MARKET TIMING IN A BULL MARKET LIKE THAT OF THE PAST FEW YEARS HE SAYS BUT IN A BEAR MARKET THE SEAL BEACH CALIF ADVISER SAYS TIMING REALLY COMES INTO ITS OWN 9404280003 940428 TECHNOLOGY & HEALTH MICE ALTERED TO MAKE HUMAN ANTIBODIES FOR SCIENTISTS TO USE AGAINST DISEASES BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL SCIENTISTS AT TWO COMPETING BIOTECHNOLOGY COMPANIES REPORTED THEY HAD GENETICALLY ENGINEERED MICE TO PRODUCE HUMAN VERSIONS OF MONOCLONAL ANTIBODIES THE BIOLOGICAL GUIDED MISSILES THAT SCIENTISTS HOPE TO WIELD AGAINST CANCER AND SCORES OF OTHER DISEASES THE LONGSOUGHT HUMAN MONOCLONAL ANTIBODIES SHOULD BE ALMOST FREE OF THE IMMUNE REACTIONS IN THE HUMAN BODY THAT HAVE HAMPERED THE USE OF PRESENTDAY MONOCLONAL ANTIBODIES CONTAINING MOUSE PROTEINS THE TWO COMPANIES CELL GENESYS INC OF FOSTER CITY CALIF AND CLOSELY HELD GENPHARM INTERNATIONAL INC OF MOUNTAIN VIEW CALIF ALREADY ARE IN THE COURTS OVER WHO DEVELOPED A KEY PART OF THE TECHNIQUE FOR ENGINEERING THE UNIQUE ANTIBODYPRODUCING MICE MONOCLONAL ANTIBODIES ARE LABORATORYMADE VERSIONS OF THE ANTIBODIES THAT MAMMALS FROM MICE TO MEN MAKE TO FIGHT OFF INVASIONS OF FOREIGN PROTEINS SUCH AS THOSE ON THE SURFACE COAT OF A VIRUS EACH SQUADRON OF ANTIBODIES THAT ATTACKS EACH INVADING PROTEIN IS MADE BY A SINGLE CLONE OR COLLECTION OF IDENTICAL ANTIBODYMAKING BLOOD CELLS SINCE AN INVADER LIKE A VIRUS USUALLY DISPLAYS MANY PROTEINS MANY CLONES OF ANTIBODYMAKING CELLS ARE FORMED PRODUCING AN ARMY OF POLYCLONAL ANTIBODIES IN THE MID1970S AN ENGLISH AND A SWISS SCIENTIST JOINTLY DEVELOPED A TECHNIQUE FOR IMMUNIZING A MOUSE AGAINST A PARTICULAR PROTEIN AND THEN EXTRACTING AND GROWING IN THE TEST TUBE ONLY THE SINGLE CLONE OF CELLS A MONOCLONE THAT WAS MAKING THE ANTIBODIES AGAINST THAT PARTICULAR PROTEIN THESE MOUSE MONOCLONAL ANTIBODIES NOW CAN BE MADE TO HOME IN AND ATTACH TO ALMOST ANY PROTEIN SCIENTISTS DESIRE A DECADELONG MAJOR EFFORT FOR INSTANCE IS TO DEVELOP MONOCLONAL ANTIBODIES THAT SEEK OUT THE PROTEINS UNIQUE TO CANCER CELLS SUCH ANTIBODIES COULD CARRY WARHEADS OF POISONS DIRECTLY TO CANCER CELLS WHILE LEAVING NORMAL CELLS UNTOUCHED SCIENTISTS ALSO ARE WORKING ON MONOCLONALS THAT NEUTRALIZE BACTERIAL POISONS BLOODCLOTTING PROTEINS AND SCORES OF OTHER PROTEINS LINKED TO HUMAN DISEASE SCIENTISTS HAVE BEEN STRUGGLING HARD TO OVERCOME THE FACT THAT THE MOUSE MONOCLONALS ARE THEMSELVES FOREIGN PROTEINS TO THE HUMAN BODY AFTER AN INITIAL EXPOSURE HUMANS TEND TO MAKE ANTIBODIES AGAINST THE MOUSE ANTIBODIES RENDERING THEM INEFFECTIVE GENETIC ENGINEERS HAVE BEEN ABLE TO MAKE PARTS OF THE MONOCLONALS HUMAN BUT THESE HUMANIZED MONOCLONALS STILL CONTAIN MOUSE SEGMENTS GENPHARM AND CELL GENESYS EACH CLAIM THEY HAVE NOW SOLVED THIS PROBLEM WITH MICE WHOSE NATIVE ANTIBODYMAKING GENES HAVE BEEN REPLACED WITH HUMAN GENES SINCE THE HUMAN BODY WOULD REGARD HUMAN ANTIBODIES AS CLOSE KIN IT SHOULD BE LESS LIKELY TO DEVELOP AN IMMUNITY TO THEM THE TWO COMPANIES LOCATED WITHIN A DOZEN MILES OF EACH OTHER SOUTH OF SAN FRANCISCO HAVE REPORTS PUBLISHED IN SEPARATE SCIENTIFIC JOURNALS TODAY GENPHARM IN THE WEEKLY JOURNAL NATURE AND CELL GENESYS IN THE MONTHLY NATURE GENETICS BOTH PUBLISHED IN ENGLAND BY THE SAME PUBLISHER IN THEIR RESPECTIVE REPORTS SUBMITTED TO THE TWO JOURNALS WITHIN A WEEK OF EACH OTHER IN MIDDECEMBER THE COMPANIES' SCIENTISTS DESCRIBE HOW THEY TOOK THE HUMAN GENES RESPONSIBLE FOR MAKING MAJOR COMPONENTS OF ANTIBODIES AND ENGINEERED THEM INTO ONE MOUSE THEY THEN TOOK A SECOND MOUSE AND KNOCKED OUT ITS ANTIBODYMAKING GENES THE TWO MICE WERE THEN BRED PRODUCING A NEW STRAIN OF MICE WITH HUMAN ANTIBODY GENES REPLACING MOST OF THE MOUSE ANTIBODY GENES WHEN AN OFFSPRING WAS INJECTED WITH A TARGET PROTEIN THE MAJORITY OF THE MOUSE'S ANTIBODYMAKING CELLS PRODUCED HUMAN ANTIBODIES THESE HUMANIZED CELLS WERE THEN PLUCKED OUT AND GROWN IN THE TEST TUBE CHURNING OUT HUMAN MONOCLONAL ANTIBODIES AGAINST THE PROTEIN CELL GENESYS SCIENTISTS FOR EXAMPLE HAD THE MOUSE PRODUCE HUMAN ANTIBODIES AGAINST TETANUS TOXIN WE'RE TARGETING THE LATER PART OF 1995 TO GET OUR FIRST HUMAN MONOCLONAL INTO CLINICAL TRIALS SAID DAVID WINTER PRESIDENT OF GENPHARM HE DECLINED TO SAY WHAT PROTEIN TARGETS THE COMPANY WILL DESIGN ITS ANTIBODIES TO ATTACK BUT HE SAID GENPHARM HAS A PARTNERSHIP WITH ELI LILLY & CO TO DEVELOP ANTIBODIES AGAINST PROTEINS UNIQUE TO CANCER DR WINTER SAID GENPHARM ALSO HAS AN ARRANGEMENT WITH A BIG JAPANESE DRUG COMPANY EISAI CO TO DEVELOP AN ANTIBODY THAT HE DIDN'T IDENTIFY CELL GENESYS SAID IT IS ALREADY DEVELOPING HUMAN MONOCLONALS AGAINST A VARIETY OF DISEASELINKED PROTEINS ONE IT NAMED IS CALLED LSELECTIN INVOLVED IN INFLAMMATION FROM INJURIES THE RESEARCHERS ALSO SAID THEY MADE A HUMAN ANTIBODY AGAINST A HUMAN PROTEIN INVOLVED IN ALLERGIES CELL GENESYS SAID ITS NEW TECHNOLOGY HAS BEEN ASSIGNED TO ZENOTECH LP A JOINT VENTURE OF CELL GENESYS AND THE US UNIT OF JAPAN TOBACCO INC IN FEBRUARY CELL GENESYS FILED A SUIT IN SANTA CLARA COUNTY COURT IN CALIFORNIA CHARGING THAT IN 1990 AN ACADEMIC CONSULTANT TO THE COMPANY HAD BECOME A CONSULTANT TO GENPHARM AND HAD PASSED ON SECRET INFORMATION ABOUT HOW TO CREATE THE NEW MOUSE STRAIN BOTH GENPHARM AND THE CONSULTANT HAVE DENIED THE CHARGE CELL GENESYS STOCK CLOSED AT 1225 A SHARE UNCHANGED IN NASDAQ STOCK MARKET TRADING YESTERDAY 9404280002 940428 WHO'S NEWS REPUBLIC NEW YORK CORP REPUBLIC NEW YORK CORP NEW YORK E DANIEL MORRIS 52 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER AT THE REPUBLIC NEW YORK SECURITIES CORP SUBSIDIARY OF THIS BANK HOLDING COMPANY SUCCEEDING LOUIS LLOYD WHO CONTINUES AS PRESIDENT MR MORRIS A DIRECTOR OF THE PARENT COMPANY SINCE 1993 WAS ALSO NAMED CHAIRMAN OF THE UNIT'S EXECUTIVE COMMITTEE A NEW POSITION MR MORRIS WAS PREVIOUSLY A MANAGING DIRECTOR AT MORGAN STANLEY & CO 9404280001 940428 MFS TO COMPETE IN MARYLAND OMAHA NEB MFS COMMUNICATIONS CO SAID REGULATORS GRANTED IT PERMISSION TO PROVIDE LOCAL AND LONGDISTANCE PHONE SERVICE TO BUSINESS CUSTOMERS IN MARYLAND MFS WHICH ALREADY PROVIDES LOCAL AND LONGDISTANCE PHONE SERVICES TO BUSINESSES ON A HIGHTECH FIBEROPTIC NETWORK IN THE NEW YORK MARKET NOW WILL COMPETE WITH BELL ATLANTIC CORP IN MARYLAND IT'S JUST ANOTHER SIGN OF THE GROWING COMPETITION FOR LOCAL PHONE BUSINESS A BELL ATLANTIC SPOKESMAN SAID BELL ATLANTIC IS A MAJOR REGIONAL PHONE COMPANY 9404280051 940329 MARKETING & MEDIA ADVERTISING COLLAGEN CORP'S VIDEO USES NEWS FORMAT BY LAURA BIRD IT LOOKS FOR ALL THE WORLD LIKE A NEWS SHOW COMPLETE WITH ARMCHAIRS A PANEL OF EXPERTS AND EVEN KATHLEEN SULLIVAN THE FORMER TELEVISION NEWSSHOW HOST THE TOPIC IS MODERN CONCEPTS IN SKIN CARE WHICH MS SULLIVAN PROMISES WILL OFFER EXCLUSIVE INDEPTH ANALYSIS OF PROCEDURES TO TREAT DAMAGED AND AGING SKIN BUT FAR FROM A BALANCED NEWS SHOW THIS VIDEO IS A SALES PITCH MADE BY COLLAGEN CORP THE PALO ALTO CALIF COMPANY THAT MARKETS COLLAGEN REPLACEMENT THERAPY IN WHICH PURIFIED BOVINE FAT IS INJECTED UNDER THE SKIN TO PLUMP UP WRINKLES AND ACNE SCARS COLLAGEN HAS BEEN AT THE CENTER OF A MEDICAL AND REGULATORY CONTROVERSY ABOUT THE SAFETY OF COLLAGEN INJECTIONS AND POSSIBLE LINKS TO SOME OF THE SAME DISEASES ASSOCIATED WITH SILICONE BREAST IMPLANTS INJECTABLE COLLAGEN SOLD TO PHYSICIANS UNDER THE BRAND NAMES ZYDERM AND ZYPLAST HAS BEEN APPROVED BY THE FOOD AND DRUG ADMINISTRATION SINCE 1981 FOR CORRECTING CONTOUR DEFICIENCIES SUCH AS WRINKLES AND ACNE SCARS SINCE 1991 THE FDA HAS REQUIRED COLLAGEN CORP TO PUT WARNINGS ON LABELS AND ADVERTISING ABOUT POSSIBLE LINKS BETWEEN INJECTABLE COLLAGEN AND SYSTEMIC AUTOIMMUNE DISEASES INCLUDING POLYMYOSITIS/DERMATOMYOSITIS KNOWN AS PM/DM AND SCLERODERMA MS SULLIVAN A FORMER ANCHOR OF CBS THIS MORNING RAISED EYEBROWS LAST JANUARY WHEN SHE STARTED APPEARING IN TV COMMERCIALS FOR WEIGHT WATCHERS INTERNATIONAL BUT HER APPEARANCE IN THE SALES VIDEO WHICH COLLAGEN TESTED LAST FALL AS AN INFOMERCIAL AND NOW SENDS DIRECTLY TO CONSUMERS IS LIKELY TO PROVE FAR MORE CONTROVERSIAL THAN THE WEIGHTLOSS PITCH THE CAMPAIGN COMES AS SOME MEDICAL RESEARCHERS AND THE TEXAS DEPARTMENT OF HEALTH ARE RESOUNDING AN ALARM OVER THE SAFETY AND EFFICACY OF COLLAGEN INJECTIONS IN A LETTER SENT IN JANUARY TO THE FDA THE TEXAS REGULATORS ARE CALLING ON THE FEDERAL AGENCY TO RECONSIDER THE CONCLUSIONS IT DREW BEFORE REQUIRING THE LABEL WARNINGS THAT THERE IS NO CAUSAL RELATIONSHIP BETWEEN COLLAGEN AND THE DISEASES THE FDA SAYS IT IS LOOKING INTO THE MATTER WE CONTINUE TO MONITOR ANY REPORTS OF PM/DM ASSOCIATED WITH COLLAGEN INJECTIONS A SPOKESWOMAN SAYS SCIENTISTS WHO QUESTION COLLAGEN'S SAFETY ARE APPALLED BY THE VIDEO IT DELIVERS A HARD SALES PITCH FOR A MEDICAL PROCEDURE THEY SAY AND DESPITE THE VIDEO'S LENGTHY DISCLAIMERS ABOUT ALLERGIC REACTIONS AND THE IMPORTANCE OF CONSULTING A DOCTOR THE VIDEO GLOSSES OVER HOW SERIOUS SOME REACTIONS ARE THESE CRITICS SAY THIS PRODUCT HAS NO BUSINESS BEING ON THE MARKET ASSERTS JEAN CUKIER A HOUSTON PLASTIC SURGEON WHO WAS ONE OF THE FIRST PHYSICIANS TO WARN OF COLLAGEN'S POSSIBLE HAZARDS IF YOU INTERVIEWED A DIVERSE NUMBER OF DOCTORS YOU WOULDN'T GET UNIVERSAL AGREEMENT THAT COLLAGEN SHOULD EVEN BE USED BUT WITH THIS VIDEO YOU'D HAVE A PATIENT BEGGING YOU TO DO IT BECAUSE IT SOUNDS SO GREAT CRITICS ALSO ATTACK IT FOR USING A FORMER JOURNALIST TO CREATE THE IMPRESSION OF AN OBJECTIVE NEWS ACCOUNT OF A CONTROVERSY THAT IS FAR FROM SETTLED THEY MAKE THE ALLERGIC REACTIONS SOUND SO BENIGN DR CUKIER SAYS BUT WE'RE TALKING ABOUT A MEDICAL PROCEDURE HERE NOT A CAR WAX OR HAIR DYE FOR ITS PART COLLAGEN SAYS THE VIDEO PROVIDES ADEQUATE WARNINGS INCLUDING A LENGTHY ONE THAT SCROLLS BY AT THE END AND THAT IT SOLICITED AND RECEIVED INPUT ON IT FROM THE FDA THE COMPANY ALSO CONTENDS THAT TEXAS REGULATORS AREN'T PRESENTING ANYTHING NEW JUST REVIVING AN ISSUE THAT THE FDA HAS ALREADY SETTLED AND BESIDES COMPANY OFFICIALS ADD PROSPECTIVE PATIENTS WOULD RECEIVE INFORMATION ABOUT COLLAGEN FROM THEIR DOCTORS AND COMPANY BROCHURES LOOKING AT THE VIDEO ISN'T THE ONLY INFORMATION YOU GET SAYS PAMELA CAMPBELL COLLAGEN'S CORPORATE LEGAL COORDINATOR COLLAGEN'S AD AGENCY THE SAN FRANCISCO OFFICE OF GREY ADVERTISING CREATED GLOSSY ADS RUNNING IN MAGAZINES SUCH AS VANITY FAIR AND ARCHITECTURAL DIGEST AND FEATURING A PICTURE OF A WOMAN'S CROWFOOTED EYE ALONGSIDE THE HEADLINE TIME MAY CHANGE ME BUT I CAN CHANGE TIME CONSUMERS WHO CALL THE TOLLFREE NUMBER IN THE AD RECEIVE THE VIDEO A SELFASSESSMENT KIT AND A COUPON FOR 50 OFF THE COST OF THEIR FIRST TREATMENT INTERSPERSED THROUGHOUT THE VIDEO'S FAUX NEWS SHOW ARE BEFOREANDAFTER SHOTS OF COLLAGENINJECTION PATIENTS AND TESTIMONIALS FROM WOMEN THAT COLLAGEN SAYS ARE ACTUAL SATISFIED CUSTOMERS COLLAGEN IS THE THING THAT PULLS EVERYTHING TOGETHER SAYS ONE IT'S LIKE THE FINISHED LOOK ON A WELLDRESSED WOMAN ANOTHER DECLARES THE CONFIDENCE THAT COLLAGEN GIVES ME KNOWING THAT I LOOK MY BEST IS WORTH ANY OUTFIT THAT I COULD POSSIBLY BUY PIERCING MY EARS WAS A BIGGER DEAL SAYS ANOTHER THE VIDEO ALSO INCLUDES A REENACTMENT OF A VISIT TO A DOCTOR BY A PATIENT SALLY HARRIS PATIENTS WHO RECEIVE COLLAGEN INJECTIONS MUST FIRST UNDERGO A SKIN TEST TO SEE WHETHER THEY ARE HYPERSENSITIVE TO BOVINE FAT ABOUT 3 OF PATIENTS ARE ACCORDING TO THE VIDEO IT ALSO NOTES THAT AN ADDITIONAL 1 TO 2 OF PATIENTS WHOSE SKIN TESTS WERE NEGATIVE WILL NONETHELESS DEVELOP ALLERGIC REACTIONS A FIGURE SOME MEDICAL RESEARCHERS CLAIM IS TOO LOW A DOCTOR INTERVIEWED IN THE SHOW IS SHOWN ADMINISTERING THE SKIN TEST TO MS HARRIS AND EXPLAINING THAT IN RARE INSTANCES PATIENTS WITH NEGATIVE SKIN TESTS MAY STILL DEVELOP REACTIONS THEY TEND TO BE LOCALIZED TO THE AREA OF INJECTION AND COSMETIC IN NATURE SHE SAYS ADDING AND YOU HAVE TO REMEMBER THAT THE LIKELIHOOD OF AN ALLERGIC REACTION IS SMALL WHERE ARE THE WELTS AND THE BUMPS DR CUKIER ASKS THE VIDEO HE SAYS LOOKS LIKE A GENUINE EFFORT TO EDUCATE PATIENTS BUT WHY SHOW ALL THESE PRETTY PICTURES AND NOT THE POTENTIAL CATASTROPHES DR CUKIER SAYS THAT BEFORE HE STOPPED ADMINISTERING COLLAGEN INJECTIONS SOME OF HIS PATIENTS HAD DEVELOPED GANGRENOUS SLOUGHING SOON AFTER RECEIVING INJECTIONS AND ULTIMATELY ENDED UP WITH SIGNIFCANT SCAR FORMATION SUCH SEVERE SYMPTOMS ALSO ARE ASSOCIATED WITH THE AUTOIMMUNE DISEASES HOWARD PALEFSKY COLLAGEN'S CHIEF EXECUTIVE OFFICER DISMISSES THE TEXAS RESEARCHERS' CRITICISM IT'S A CAMPAIGN AND A VENDETTA HE SAYS IT ISN'T NECESSARY OR INCUMBENT ON US TO SHOW EXAMPLES OF ADVERSE REACTIONS IN ADVERTISING WE HAVE TO WARN OF THE ADVERSE REACTIONS AND WE DO THAT IN THE STATEMENT ON THE TAPE MR PALEFSKY SAYS COLLAGEN PLANS TO CONTEST THE FDA'S 1991 RULING THAT ITS LABELS INCLUDE A STATEMENT ABOUT POSSIBLE LINKS TO AUTOIMMUNE DISEASES IT'S A NONSENSE WARNING HE SAYS THE VIDEO CAMPAIGN MARKS COLLAGEN'S FIRST MAJOR CONSUMER ADVERTISING EFFORT IN SEVERAL YEARS WHEN SALES OF ZYDERM AND ZYPLAST WERE HURT BY REPORTS LINKING COLLAGEN TO SEVERAL RARE AUTOIMMUNE DISEASES DURING THAT TIME COLLAGEN FOCUSED ITS MARKETING DIRECTLY AT PHYSICIANS BUT LAST YEAR COLLAGEN RECEIVED FDA APPROVAL OF TWO NEW APPLICATIONS FOR INJECTABLE COLLAGENTREATMENTS FOR BONE FRACTURES AND FOR CHRONIC BLADDER INCONTINENCE SO THE COMPANY DECIDED TO TRY A MORE VISIBLE APPROACH TO ADVERTISING ITS CORE PRODUCTS ZYDERM AND ZYPLAST WE FELT THIS CAMPAIGN WAS WELLTIMED A COMPANY SPOKESWOMAN SAID THE APPROVALS DID SPEAK TO THE SAFETY OF COLLAGEN AT&T AMERICAN TELEPHONE & TELEGRAPH CO NARROWED THE FIELD OF CONTENDERS FOR ITS BIG CONSUMER SERVICES DIRECTMARKETING ACCOUNTS THEY ARE BOSTON AGENCY BRONNER SLOSBERG HUMPHREY WPP GROUP'S OGILVY & MATHER DIRECT SAATCHI & SAATCHI CO'S SAATCHI & SAATCHI DIRECT FOOTE CONE & BELDING COMMUNICATIONS' FCB DIRECT AND YOUNG & RUBICAM'S WUNDERMAN CATO JOHNSON AT&T SAID SEE RELATED LETTER LETTERS TO THE EDITOR COLLAGEN PRODUCTS PROVEN SAFE TO USE WSJ APRIL 28 1994 9403290009 YY94 MM04 9404280050 940321 HOME FREE SOME RICH AND FAMOUS OF NEW YORK CITY BASK IN SHELTER OF RENT LAW PAYING BELOWMARKET RATES THEY SCORE WITH SYSTEM MANY ECONOMISTS ASSAIL IT'S OK WITH GOP MAYOR BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LES KATZ A 27YEAROLD ACTING STUDENT AND DOORMAN RENTS A SMALL STUDIO APARTMENT ON MANHATTAN'S UPPER WEST SIDE FOR 1200 WITH TWO ROOMMATES TWO SLEEP IN SEPARATE BEDS IN A LOFT BUILT ATOP THE KITCHEN THE THIRD ON A MATTRESS IN THE MAIN ROOM ACROSS TOWN ON PARK AVENUE PAUL HABERMAN A PRIVATE INVESTOR AND HIS WIFE LIVE IN A SPACIOUS TWOBEDROOM APARTMENT WITH A SOLARIUM AND TWO TERRACES THE APARTMENT IN AN ELEGANT BUILDING ON THE PRESTIGIOUS AVENUE IS WORTH AT LEAST 5000 A MONTH REALESTATE PROFESSIONALS SAY THE COUPLE PAY AROUND 350 ACCORDING TO RENT RECORDS MR HABERMAN DECLINES TO DISCUSS THE AMOUNT THE REASON FOR THIS DISPARITY NEW YORK RENT REGULATION NEW YORK CITY IS FACING A 23 BILLION BUDGET DEFICIT AND ITS WORST FISCAL CRUNCH IN 20 YEARS MEANWHILE THE CITY BY VARIOUS ESTIMATES FORFEITS 100 MILLION OR MORE IN PROPERTY TAXES ANNUALLY BECAUSE SUPPRESSED RENTS HOLD DOWN THE CASH FLOW THUS THE ASSESSED VALUE OF RESIDENTIAL BUILDINGS CRITICS ALSO SAY THE RESTRICTIONS DETER CONSTRUCTION OF NEW RENTAL BUILDINGS AND FORCE LANDLORDS AND INDIRECTLY TAXPAYERS TO SUBSIDIZE THOSE TENANTS LUCKY ENOUGH TO HAVE ONE OF THE REGULATED APARTMENTS TODAY NEW YORK'S CITY COUNCIL WILL TAKE UP THE ISSUE AGAIN IT WILL VOTE ON A TRIENNIAL EXTENSION OF THE RENT GUIDELINES THIS YEAR THE CITY HAS A NEW FREEMARKETORIENTED MAYOR WHO IS MOVING TO PRIVATIZE SOME INEFFICIENT CITYOWNED HOSPITALS OFFER TAX INCENTIVES TO KEEP BUSINESS IN THE CITY AND CUT THOUSANDS OF JOBS TO CLOSE THE BUDGET GAP BUT ONE THING MAYOR RUDOLPH GIULIANI WON'T BE CHALLENGING IS RENT REGULATION THE REPUBLICAN MAYOR SAYS HE IS STANDING BY REGULATION BECAUSE IT HELPS PRESERVE MIDDLECLASS HOUSING IN THE CITY AND IT HELPS THE POOR HE SAYS WHO WOULD OTHERWISE BE FORCED TO LIVE FARTHER OUT ONE OFFICIAL IN THE MAYOR'S OFFICE SUGGESTS THERE IS ANOTHER REASON BAD POLITICS IN THE BOROUGH OF MANHATTAN ABOUT 85 OF RESIDENTS RENT APARTMENTS AND 69 OF THESE ARE RENTREGULATED THE RENT SYSTEM IS SOMETHING COUNTLESS NEW YORKERS ARE PASSIONATE ABOUT YET LATELY IT HAS RUN INTO INCREASING SKEPTICISM LAST YEAR THE STATE LEGISLATURE WHOSE LAWS PROVIDE THE UNDERPINNING OF REGULATION GOT INTO A LONG WRANGLE OVER A PROPOSAL TO STRIP THE LAW'S PROTECTION AWAY FROM THOSE TENANTS SEEMINGLY LEAST IN NEED OF IT NAMELY THE RICH THE LEGISLATURE ULTIMATELY DID VOTE TO TAKE IT FROM TENANTS EARNING OVER 250000 A YEAR IF THEIR RENT IS 2000 OR MORE TODAY'S CITY COUNCIL SESSION WHILE CERTAIN TO EXTEND THE GENERAL GUIDELINES ISN'T EXPECTED TO BE WITHOUT FIREWORKS THE COUNCIL WILL FACE SEVERAL PROPOSED CHANGES AMONG THEM TO LET RENTS JUMP 25 WHEN APARTMENTS ARE VACATED AND TO DEREGULATE VACATED APARTMENTS ENTIRELY MEANWHILE THERE HAS BEEN FERMENT IN THE COURTS A RECENT RULING ALLOWED THE RESOLUTION TRUST CORP WHICH INHERITED SOME BUILDINGS FROM FAILED SAVINGS AND LOANS TO CANCEL SOME RENTREGULATED LEASES PEOPLE FROM ALL WALKS OF LIFE HAVE LUCKED INTO RENTREGULATED NEW YORK APARTMENTS ACTRESSES MIA FARROW AND CICELY TYSON BARONESS INGRID THYSSEN SIDNEY BIDDLE BARROWS THE SOCALLED MAYFLOWER MADAM STATE SENATE DEMOCRATIC LEADER MANFRED OHRENSTEIN LEVERAGEDBUYOUT SPECIALIST TODD GOODWIN AND ALSO SOME EMPLOYEES OF THE COMPANY THAT PUBLISHES THIS NEWSPAPER DOW JONES & CO SO IT IS THAT PHILIPPE DE MONTEBELLO DIRECTOR OF THE METROPOLITAN MUSEUM OF ART PAYS ABOUT 1985 A MONTH FOR A SEVENROOM APARTMENT ON FIFTH AVENUE THE MARKET RATE WOULD BE ABOUT 6000 ACCORDING TO FEATHERED NEST A LOCAL RENTAL AGENCY BASED ON THE APARTMENT'S FLOOR PLAN LOCATION AND OTHER INFORMATION AND JACK FUTTERMAN CHAIRMAN OF PATHMARK STORES INC PAYS 133682 A MONTH FOR AN APARTMENT ON TONY CENTRAL PARK SOUTH ACCORDING TO RENT RECORDS THAT'S ABOUT HALF FEATHERED NEST'S CALCULATION OF THE FREEMARKET VALUE RENT REGULATION IN NEW YORK BEGAN AS AN EMERGENCY MEASURE DURING WORLD WAR II TO ENSURE THAT TRANSIENT WELLPAID WARTIME WORKERS DIDN'T OUTBID LOCAL RESIDENTS FOR THE LIMITED SUPPLY OF APARTMENTS AFTER THE WAR CITY POLITICIANS RETAINED RENT REGULATION RULING THAT AS LONG AS THE VACANCY RATE REMAINS BELOW 5 A HOUSING EMERGENCY EXISTS THE RATE IS 344 NOW THE RULES GET COMPLICATED FROM HERE OF THE 581241 RENTAL APARTMENTS IN MANHATTAN 47000 ARE RENTCONTROLLED WHICH MEANS THEY WERE BUILT BEFORE 1947 AND THE SAME TENANTS OR CLOSE RELATIVES HAVE LIVED IN THEM SINCE 1971 THESE APARTMENTS ARE THE REAL PLUMS BECAUSE ANY RENT INCREASES ARE SEVERELY RESTRICTED A FURTHER 355300 APARTMENTS ARE RENTSTABILIZED THESE WERE BUILT AFTER 1947 OR BUILT EARLIER BUT VACATED AND RERENTED AFTER 1971 THEIR RENTS TEND TO BE HIGHER BUT OFTEN STILL ARE FAR BELOW UNREGULATED PLACES BECAUSE INCREASES ARE LIMITED UNUSUAL HOUSING DISTORTIONS CAN RESULT AN ELDERLY TENANT WHOSE CHILDREN HAVE LEFT HOME MAY REMAIN IN A SPRAWLING APARTMENT BECAUSE IT IS CHEAPER THAN A SMALLER BUT UNREGULATED PLACE WOULD BE YOUNG FAMILIES UNABLE TO GET IN ON SUCH A DEAL END UP IN SMALLER PLACES AT HIGHER RENT ALTHOUGH DEVELOPERS ARE ALLOWED TO BUILD RENTAL BUILDINGS WHOSE RENTS WON'T BE REGULATED THEY FORFEIT TAX ABATEMENTS IF THEY DO SO IN THE 1980S THE LAST TIME THERE WAS NEW RENTALHOUSING CONSTRUCTION IN MANHATTAN PRACTICALLY EVERY DEVELOPER CHOSE THE ABATEMENTS AND THEREFORE REGULATION BUT BUILT LUXURY NOT MIDDLE OR LOWERINCOME HOUSING ABOLISHING RENT REGULATION IS THE ONLY WAY IN THE LONG RUN TO INCREASE HOUSING SUPPLY CONTENDS ANTHONY DOWNS A SENIOR FELLOW AT THE BROOKINGS INSTITUTION REMOVING RENT GUIDELINES WOULD RESULT IN A SHORTRUN INCREASE IN MANY RENTS BUT IN THE LONG RUN RENTS OF UNREGULATED APARTMENTS WOULD COME DOWN AS THE COMPETITION GETS STRONGER HE SAYS MICHAEL MCKEE CHAIRMAN OF THE NEW YORK STATE TENANT AND NEIGHBORHOOD COALITION WHICH SUPPORTS REGULATION SAYS IT PROTECTS THE HOUSING STOCK AND KEEPS IT AFFORDABLE THE AVERAGE HOUSEHOLD INCOME OF OCCUPANTS OF RENTREGULATED APARTMENTS IN NEW YORK'S FIVE BOROUGHS WAS LESS THAN 20000 LAST YEAR YET THE WELLTODO REAP A DISPROPORTIONATE SHARE OF RENT REGULATION'S REWARDS AT LEAST BY SOME CALCULATIONS A REPORT BY NEW YORK'S CITIZENS BUDGET COMMISSION A NONPARTISAN WATCHDOG GROUP CALCULATED THAT IN 1987 THE SUBSIDY FROM RENT REGULATION AVERAGED 345 MONTHLY FOR TENANT HOUSEHOLDS WITH ANNUAL INCOMES ABOVE 75000 AND ONLY 176 FOR HOUSEHOLDS WITH INCOMES BETWEEN 10000 AND 19000 IN SOME POOR NEIGHBORHOODS THERE ISN'T ANY REAL SUBSIDY BECAUSE INCOMES LIMIT MARKET RENTS THE CITIZENS GROUP CONCLUDED THE POOR GET THE LEAST BENEFITS FROM REGULATION AND MANY MAY GET NO PROTECTION IN MANHATTAN 3 OF RENTREGULATED APARTMENTS ARE OCCUPIED BY HOUSEHOLDS EARNING MORE THAN 100000 A YEAR AND 15 BY HOUSEHOLDS EARNING MORE THAN 50000 ANNUALLY LANDLORDS WHO OBVIOUSLY OPPOSE RENT REGULATIONS SAY THE STATISTICS DON'T TELL THE WHOLE STORY THE DOLLAR IMPACT IN TERMS OF POTENTIAL TAX COLLECTION FORGONE IS LARGE SAYS ARNOLD GOLDSTEIN A LANDLORD WHOSE RENTREGULATED TENANTS INCLUDE MR DE MONTEBELLO AND WRITER ALISTAIR COOKE MR COOKE THE FORMER HOST OF PUBLIC BROADCASTING'S MASTERPIECE THEATRE LIVES IN AN EIGHTROOM APARTMENT ON FIFTH AVENUE OVERLOOKING CENTRAL PARK THE RENT IS ABOUT 1500 ACCORDING TO THE LANDLORD MESSRS COOKE AND DE MONTEBELLO DIDN'T RETURN PHONE CALLS SEEKING COMMENT MOST OF THE RENTERS REACHED WOULDN'T COMMENT AND THOSE WHO DID HAD LITTLE TO SAY FOR INSTANCE DEVELOPER BURTON RESNICK PAYS ABOUT 1275 A MONTH FOR A ONEBEDROOM APARTMENT ON PARK AVENUE ACCORDING TO RENT RECORDS THIS WOULD BE ABOUT 1000 BELOW ITS MARKET VALUE ASKED WHETHER THIS MEANS THAT HE UNLIKE OTHER DEVELOPERS SUPPORTS RENT REGULATION MR RESNICK SAYS I'M IN THE REALESTATE BUSINESS I DON'T WANT TO TALK ABOUT IT SO HOW DO TENANTS GET THESE DEALS SOME INHERIT THEM MS FARROW PAYS ABOUT 2900 A MONTH FOR 10 ROOMS ON CENTRAL PARK WEST A FRACTION OF THE MARKET VALUE THE ACTRESS GREW UP IN THE APARTMENT WHICH WAS THE SETTING FOR ONE OF HER MOVIES HANNAH AND HER SISTERS HER MOTHER MAUREEN O'SULLIVAN WHO ALSO WAS IN THE WOODY ALLEN FILM FIRST SIGNED THE LEASE 40 YEARS AGO OTHER RENTREGULATED TENANTS LIKE FORMER NEW YORK MAYOR DAVID DINKINS AND MANHATTAN DISTRICT ATTORNEY ROBERT MORGENTHAU KNEW THE LANDLORD IN THEIR CASE NEW YORK'S RUDIN FAMILY THE RUDINS LIKE TO COOPERATE IN MAKING RENTSTABILIZED APARTMENTS AVAILABLE TO FORMER PUBLIC OFFICIALS SAYS BARBARA FIFE A DEPUTY MAYOR IN CHARGE OF HOUSING UNDER MR DINKINS AND A STRONG ADVOCATE OF RENT REGULATION ENTERTAINMENT LAWYER ALLEN J GRUBMAN WHO HAS DONE DEALS FOR THE LIKES OF BILLY JOEL MADONNA MICHAEL JACKSON AND DAVID GEFFEN STRUCK ONE FOR HIMSELF TOO HE PAYS ABOUT 9000 A MONTH FOR HIS RENTSTABILIZED APARTMENT AN ASTRONOMICAL SUM IT WOULD SEEM BUT MR GRUBMAN GETS THE ENTIRE 17TH FLOOR OF A GRACEFUL OLD PARK AVENUE BUILDING THAT SPANS HALF OF A CITY BLOCK HIS LANDLORD SAYS IT IS THE SIZE OF FOUR LARGE TWOBEDROOM APARTMENTS AND REALESTATE AGENTS SAY THEY COULD RENT IT FOR 20000 ON THE OPEN MARKET SAYS MR GRUBMAN APARTMENTS BECOME AVAILABLE AND IF YOU FIND OUT ABOUT THEM YOU GET THEM I FOUND OUT ABOUT IT SO I GOT IT OTHER TIMES WOULDBE TENANTS MAKE PAYMENTS KNOWN AS KEY MONEY TO PRIOR TENANTS OR TO LANDLORDS SOME LANDLORDS PREFER TO RENT TO THE WELLTODO BECAUSE THEY WILL SPEND ON THE APARTMENT'S UPKEEP WE'VE RENTED INEXPENSIVE APARTMENTS TO OVERLY WEALTHY PEOPLE SAYS BRIAN EDWARDS A BROKER FOR HALSTEAD PROPERTY CO THAT'S WHO THE LANDLORDS WANTED IN THEIR BUILDINGS ALICE MASON WHO MAKES HER LIVING SELLING MILLIONDOLLAR APARTMENTS RENTS AN EIGHTROOM EAST SIDE APARTMENT FOR 1700 A MONTH I'M VERY LUCKY TO BE IN THIS APARTMENT 32 YEARS MS MASON SAYS MARVELING THAT A SIXROOM APARTMENT IN THIS BUILDING RECENTLY RENTED FOR 4500 THE REASON FOR THE DISPARITY WHEN RENTSTABILIZED TENANTS MOVE OUT LANDLORDS IN MOST YEARS GET TO IMPOSE A SMALL EXTRA INCREASE IT CURRENTLY IS 5 SO APARTMENTS THAT HAVE TURNED OVER A LOT HAVE HIGHER RENTS HAVING A CHEAP DEAL WASN'T SO FORTUNATE FOR SIDNEY BIDDLE BARROWS SHE RAN AN ESCORT SERVICE OUT OF A RENTCONTROLLED PLACE ON MANHATTAN'S WEST SIDE THE 31441AMONTH ONEBEDROOM WAS IN A FIVESTORY WALKUP BUILDING IT KEPT THE GIRLS IN SHAPE SHE CONFIDES IT IS ILLEGAL TO RUN A BUSINESS FROM A RENTCONTROLLED PAD AND THE MAYFLOWER MADAM'S LANDLORD TURNED HER IN SHE LOST THE APARTMENT AND PLEADED GUILTY IN 1985 TO A MISDEMEANOR PROSTITUTION CHARGE BUT EVICTIONS ARE DIFFICULT LANDLORDS MUST OFFER TENANTS NEW RENTSTABILIZED LEASES WHEN THEY EXPIRE WITH WHATEVER INCREASE IS PERMITTED CURRENTLY 3 ON A ONEYEAR LEASE OR 5 ON A TWOYEAR LEASE A REGULATED TENANT CAN ADD TO THE LEASE THE NAME OF A SPOUSE WHO THEN HAS THE SAME FUTURE LEASE RIGHTS AND SUCCESSION RIGHTS ARE WIDENING A STATE HOUSING AGENCY BACKED BY A STATE APPEALS COURT HAS EXPANDED THEM TO SURVIVING MEMBERS OF GAY COUPLES IN A RULING THAT ALSO APPLIES TO CERTAIN UNMARRIED HETEROSEXUAL COUPLES IN THE CASE OF A RENTCONTROLLED APARTMENT A MEMBER OF THE EXTENDED FAMILY CAN BECOME THE NEW TENANT A GRANDMOTHER CAN PASS THE APARTMENT ON TO A GRANDCHILD WHEN SHE DIES FOR EXAMPLE IF THE GRANDCHILD HAS LIVED WITH HER FOR AT LEAST TWO YEARS THE RENT STAYS THE SAME THE NEW LAW DEREGULATING 2000PLUS APARTMENTS OF 250000INCOME TENANTS AFFECTS LESS THAN 1 OF RENTALS AND THERE ARE WAYS AROUND IT THE FIFTH AVENUE APARTMENT OF ATTORNEY DAVID BLASBAND AND HIS WIFE PAULA ISN'T IN JEOPARDY THEY SEPARATED LAST JUNE KNOWING HE WOULDN'T QUALIFY TO KEEP RENTING IT BECAUSE OF HIS HIGH INCOME MR BLASBAND MOVED OUT AND I PUT THE LEASE IN PAULA'S NAME SHE CAN KEEP IT BECAUSE HER INCOME IS LESS THAN 250000 THE APARTMENT'S ESTIMATED FREEMARKET RENT IS THREE TIMES WHAT THEY PAY SOME TENANTS SAY THERE IS A PRICE TO PAY FOR HAVING A GOOD DEAL ON RENT SHODDY MAINTENANCE DOZENS OF RENTREGULATED TENANTS IN THE BELNORD A STATELY PREWAR BUILDING ON MANHATTAN'S WEST SIDE HAVE GONE ON RENT STRIKE TO PROTEST PEELING PAINT AND CRACKED WALLS SHERWIN BELKIN A LAWYER FOR THE OWNERS WON'T COMMENT PUBLICRELATIONS AGENT JOHN SCANLON HAS LIVED IN THE BELNORD IN HIS THREEBEDROOM RENTSTABILIZED APARTMENT FOR SEVEN YEARS HIS RENT SLIGHTLY UNDER 2000 A MONTH LESS THAN HALF THE MARKET RATE WOULD BE CONSIDERED A STEAL BY SOME NOT BY HIM HE SAYS HE WOULD BE WILLING TO PAY MORE FOR IMPROVED MAINTENANCE AND BESIDES THE COUPLE DOWN THE HALL FROM US PAY ONLY 462 A MONTH FOR THEIR APARTMENT HE FUMES WE ARE SUBSIDIZING THEIR RENT THAT COUPLE AARON AND LINDA ASHER A FORMER BOOK PUBLISHER AND AN EDITOR AT THE NEW YORKER MAGAZINE RESPECTIVELY WON'T CONFIRM HOW MUCH THEY ARE PAYING MR ASHER SAYS HE AND HIS WIFE HAVE LIVED IN THE BELNORD FOR 30 YEARS THIS COMFORT OF PAYING LITTLE IN RENT HE SAYS IS ONE OF THE FEW UPSIDES OF BEING OLD AMONG THOSE WHO IN THE PAST HAVE SQUARED OFF AGAINST LANDLORDS IN COURT TO KEEP PAYING BELOWMARKET RENT BERNARDALEXIS POISSON DE MENARS A FRENCH MARQUIS WHO IS A DESCENDANT OF CHARLEMAGNE A GRANDDAUGHTER OF JOHN PHILIP SOUSA THE COMPOSER AND A LATE NEPHEW OF FORMER TAIWANESE LEADER CHIANG KAISHEK WHO SPENT THOUSANDS ON LEGAL FEES TO RETAIN A 700AMONTH APARTMENT THAT HIS LANDLORD SAID WAS WORTH MORE THAN 4000 WHILE FORMER MAYOR DINKINS HAS A RENTSTABILIZED APARTMENT HIS PREDECESSOR EDWARD KOCH LONG HAD ONE OF THE MOST PRIZED DEALS A RENTCONTROLLED APARTMENT MR KOCH PAID ABOUT 400 A MONTH FOR HIS ONEBEDROOM IN GREENWICH VILLAGE AND HELD ONTO IT FOR 12 YEARS WHILE LIVING IN THE MAYOR'S OFFICIAL RESIDENCE GRACIE MANSION THE APARTMENT WAS CONSIDERED HIS PERMANENT RESIDENCE SO HE WAS ELIGIBLE TO KEEP IT MR KOCH HAS SINCE MOVED TO A NEWUNREGULATEDTWOBEDROOM PLACE ANY ADVICE FROM HIM NOW IF I WERE IN CHARGE HE SAYS I WOULD DECONTROL ALL REGULATED APARTMENTS THAT ARE VACATED SEE RELATED LETTER LETTERS TO THE EDITOR RECALCITRANT OWNER CAUSED BELNORD'S WOES WSJ APRIL 28 1994 9403210007 YY94 MM04 9404270208 940427 MARKETING & MEDIA PEPSICO'S NET FELL 37 IN 1ST PERIOD SALES GREW 13 BY EMORY THOMAS JR STAFF REPORTER OF THE WALL STREET JOURNAL PEPSICO INC SAID FIRSTQUARTER PROFIT FELL 37 REFLECTING A ONETIME ADJUSTMENT TO EARNINGS FOR ACCOUNTING CHANGES THE FOOD AND BEVERAGE COMPANY BASED IN PURCHASE NY SAID NET INCOME TOTALED 2508 MILLION OR 31 CENTS A SHARE COMPARED WITH 2604 MILLION OR 32 CENTS A SHARE A YEAR EARLIER EXCLUDING THE ACCOUNTING ADJUSTMENTS OF 32 MILLION OR FOUR CENTS A SHARE PROFIT ROSE 9 TO 2828 MILLION OR 35 CENTS A SHARE SALES INCREASED 13 TO 573 BILLION FROM 509 BILLION THE OPERATING RESULTS WERE BOLSTERED BY A 16 SURGE IN WORLDWIDE SNACKFOOD SALES TO 17 BILLION DOMESTIC SALES ACCOUNTED FOR 1 BILLION OF THAT THE COMPANY'S LAYS BRAND GREW 25 LARGELY ON THE STRENGTH OF WAVY LAYS POTATO CHIPS A NEW PRODUCT PRETZELS WHICH HAVE GAINED POPULARITY BECAUSE THEY ARE LOW IN FAT HAD A 50 JUMP IN SALES PRIMARILY THROUGH THE ROLD GOLD BRAND WORLDWIDE BEVERAGE REVENUE INCREASED 8 TO 18 BILLION BUT BEVERAGE EARNINGS HURT BY COMPETITIVE PRICING DECLINED 2 TO 1771 MILLION MARGINS WERE HURT BY PRICECUTTING BY RIVALS SUCH AS COCACOLA CO ATLANTA AS WELL AS PRIVATELABEL BRANDS A PEPSICO SPOKESMAN SAID THE COMPARISON WITH LAST YEAR'S FIRST QUARTER WAS PARTLY SKEWED BY 1993'S BIG SALES OF CRYSTAL PEPSI PRODUCTS LAST YEAR PROFIT AT THE COMPANY'S PIZZA HUT UNIT TOOK A BEATING ON THE PRICING FRONT AS WELL WITH COMPETITORS RESPONDING TO PIZZA HUT'S BIGFOOT PIZZA WITH LOWPRICE OFFERINGS OF THEIR OWN WORLDWIDE PIZZA HUT SALES INCREASED 10 TO 1 BILLION BUT PROFIT DROPPED 18 TO 668 MILLION SAMESTORE SALES FOR COMPANYOWNED PIZZA HUT RESTAURANTS IN THE US FELL 3 SHARES OF PEPSICO SLIPPED 125 CENTS TO 36625 YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9404270207 940427 ROLLING ALONG ICC KEEPS TRUCKIN' THOUGH IT HAS LOST MUCH OF ITS AUTHORITY RATE REGULATOR NO LONGER ABLE TO REGULATE RATES IS BUSY WITH PAPERWORK SOUR SPAT OVER CANDY CANES BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A LARGE DUSTY ROOM ON THE FOURTH FLOOR OF THE INTERSTATE COMMERCE COMMISSION BUILDING PAPER IS PILING UP ALL OVER THE PLACE FADED BLUE AND GREEN BINDERS ARE STACKED FROM FLOOR TO CEILING IN 14 CORRIDORS AS WELL AS ON DESKS AND CHAIRS AND EVERY DAY FIVE DAYS A WEEK CLERKS IN TSHIRTS HAUL IN AN ESTIMATED 16000 MORE PAGES FROM THE NATION'S TRUCKING COMPANIES THE PAPERS DETAIL HOW MUCH TRUCKERS INTEND TO CHARGE TO SHIP EVERYTHING FROM ALPACA WOOL TO ZIRCONIUM AT A ROW OF DESKS NEAR GRAYDRAPED WINDOWS ICC EXAMINERS ARMED WITH PENCILS YELLOW HIGHLIGHTING PENS AND 47PAGE RULE MANUALS INSPECT EVERY LINE OF EACH NEW FILING AS THOUGH THE NATION'S TRANSPORTATION SYSTEM RIDES ON IT IF A FILING OR TARIFF PASSES MUSTER IT REMAINS IN THE TARIFF EXAMINATION ROOM THEN SOME YEAR IT IS HAULED BY SHOPPING CART TO THE CANCELLED TARIFF LIBRARY IT IS A PLACE FRANZ KAFKA WOULD HAVE LOVED THE TARIFFS HAVE LITTLE MEANING THE ICC NO LONGER HAS THE POWER TO REGULATE THE SHIPPING RATES LISTED IN THE FILINGS SO COMPANIES THAT HAVE PRODUCTS TRUCKED DON'T PROTEST THE RATES IN FACT FEW PEOPLE CAN DECIPHER THEM AND MOST FREIGHT NOW MOVES IN WAYS THAT DON'T REQUIRE THEM BUT THIS PAPERWORK IS THE FUEL THAT HELPS KEEP WASHINGTON'S OLDEST REGULATORY AGENCY GOING CRITICS SAY THE ICC CREATED IN 1887 TO RIDE HERD ON EMERGING RAILROAD MONOPOLIES HAS HAD NO IMPORTANT FUNCTION SINCE CONGRESS DEREGULATED THE TRUCKING AND RAIL INDUSTRIES IN 1980 BUT THE AGENCY HAS WITHSTOOD ATTACKS BY EVERYONE FROM RALPH NADER TO RONALD REAGAN OVER THE PAST SEVERAL MONTHS ATTEMPTS TO CUT ITS 45 MILLION ANNUAL FUNDING HAVE FAILED ON CAPITOL HILL IT IS IN SHORT THE AGENCY THAT WON'T DIE IF WE CAN'T GET RID OF THE ICC I DON'T THINK WE CAN GET RID OF ANYTHING SAYS REPUBLICAN SEN JOHN DANFORTH OF MISSOURI IN WASHINGTON EVEN PROGRAMS THAT ATTRACT WIDESPREAD RIDICULE DEVELOP A PROTECTIVE SHELL LAWMAKERS LIKE KEEPING JURISDICTION OVER INDEPENDENT AGENCIES SUCH AS THE ICC REGULATED COMPANIES DON'T WANT TO INCUR A REGULATOR'S WRATH AND SOME EVEN FEEL MORE SECURE WITH THE ICC AROUND NEW OFFICIALS AT THE AGENCY BECOME ITS CHAMPIONS SAYS GAIL C MCDONALD THE ICC'S RECENTLY APPOINTED CHAIRWOMAN IN BEING HERE I HAVE FOUND WE HAVE AN IMPORTANT JURISDICTION AND I FEEL THE PROTECTIONS WE PROVIDE THE PUBLIC ARE IMPORTANT ONES OTHERS HAVE THEIR DOUBTS A LOT OF WHAT WE DO IS JUST FOOLISH ONE LONGTIME ICC BUREAUCRAT SAYS IN LATE 1991 FOR INSTANCE THE AGENCY TOOK UP THIS STICKY QUESTION SHOULD CANDY CANES HAVE A CLASSIFICATION SEPARATE FROM CANDY IN A RATE TABLE THAT SOME TRUCKERS USE A CANDY CANE COULD BE CONSIDERED A STICK OF CANDY WHICH HAS A CROOK IN THE END ARGUED BOB'S CANDIES A CONFECTIONER IN ALBANY GA BUT A TRUCKERS' GROUP SAID CANDY CANES TAKE UP MORE SPACE THAN OTHER SWEETS THE ICC SIFTED THROUGH BRIEFS DEPOSITIONS AND DENSITY TABLES IT STILL HASN'T RULED IN THE INTERIM BOB'S SAYS IT HAS PERSUADED TRUCKERS TO CARRY ITS CANDY CANES AT THE CANDY RATE MEANTIME THE ICC ALSO IS STILL WORKING ON A 14YEAROLD DISPUTE OVER WHETHER RAILROADS WERE CHARGING TOO MUCH TO SHIP CORN SYRUP TO CALIFORNIA FROM TEXAS EVEN THOUGH SUCH RATES ARE NOW DETERMINED BY THE FREE MARKET THE AGENCY'S 630 EMPLOYEES DOWN FROM 2000 IN 1980 TRY TO MAKE THEIR JOBS RELEVANT THEY WRITE GUIDEBOOKS SUCH AS 1992'S SO YOU WANT TO START A SMALL RAILROAD FRAN GRIMMETT WHO HAS BEEN WITH THE ICC FOR MORE THAN TWO DECADES SPENDS THREE MONTHS A YEAR COMPILING A LIST OF MINORITY AND WOMENOWNED TRUCKING COMPANIES SHE DEVELOPED A COMPUTER DATABASE FOR THE TASK AND NOW SURVEYS THE BUSINESSES EVERY YEAR I THINK THIS IS IN RESPONSE TO A DEMAND SHE SAYS ALTHOUGH PERHAPS IT DIDN'T START OUT THAT WAY ALL OF THIS ACTIVITY IS OVERSEEN BY FIVE ICC COMMISSIONERS AT LEAST TWO MUST BE DEMOCRATS TWO REPUBLICANS WITH LESS TO REGULATE THE JOB OF ICC COMMISSIONER WHICH PAYS 115000 A YEAR HAS BECOME A LEISURELY ONE THE COMMISSION MET 11 TIMES LAST YEAR BUT AS MANY SESSIONS WERE CANCELED FOR LACK OF AN AGENDA ICC COMMISSIONERS CAN HIRE FIVE STAFF MEMBERS EACH BUT GREGORY WALDEN A REPUBLICAN WHO SERVED AS A COMMISSIONER MOST OF LAST YEAR SAYS HE HAD TROUBLE FINDING ENOUGH WORK FOR TWO MR WALDEN HAD A REPUTATION AMONG THE ICC STAFF AS HARDWORKING BUT SAYS THAT EVEN AFTER RESEARCHING EACH VOTE THOROUGHLY AND PROOFREADING OPINIONS HE HAD PLENTY OF TIME TO LINGER OVER THE MORNING PAPER COMMISSION STAFFERS ARE PROBABLY AMONG THE MOST FRUSTRATED IN GOVERNMENT SERVICE SAYS FRANK WILNER AUTHOR OF COMES NOW THE INTERSTATE COMMERCE PRACTITIONER A BOOK ABOUT THE AGENCY AT ONE TIME THOUGH THE ICC HAD REAL POWER IT SET TIME ZONES DECREED THAT TRAINS COULD BE RACIALLY SEGREGATED AND BLOCKED TRUCKERS FROM GOING INTO BUSINESS IF THEY COULDN'T PROVE A NEED FOR THEIR SERVICES BEING AN ICC COMMISSIONER WAS SECOND IN PRESTIGE ONLY TO A SUPREME COURT JUSTICE IN 1944 COMMISSIONER JOSEPH B EASTMAN TALKED ABOUT SITTING IN DIGNITY AND LOOKING DOWN ON THE SUPPLICANTS FROM THE ELEVATION OF A JUDICIAL BENCH THE POMP REMAINS EVIDENT AS ONE WALKS UNDER THE GARGOYLES AND COLUMNS OF THE ICC BUILDING'S FACADE PAST BUSTS OF FOUR FORMER COMMISSIONERS BEFORE ICC MEETINGS A CLERK STILL INTONES ALL RISE AS THE COMMISSIONERS WALK SINGLE FILE TO THEIR PLACES BEHIND A LONG DESK WITH A MURAL OF THE US BEHIND THEM MOST OF THE ICC'S CLOUT HAS EVAPORATED IN THE WAKE OF THE DEREGULATION OF THE 1980S THE ICC NOW CAN SET TRUCKING AND RAIL PRICES ONLY IN SITUATIONS WHERE COMPETITION DOESN'T EXIST SOMETHING THAT HAS BECOME RARE THE AGENCY STILL REVIEWS RAILROAD MERGERS AND IT STILL PROCESSES APPLICATIONS FOR NEW TRUCKING OR RAIL SERVICE THOUGH IT HAS VIRTUALLY NO POWER TO TURN THEM DOWN A TYPICAL ICC ANNOUNCEMENT IS LIKE THE RECENT ONE ABOUT A 2500 FINE AGAINST AN ALLSTON MASS AUTODELIVERY COMPANY FOR OPERATING WITHOUT INSURANCE MOST OF THE ICC'S LEGAL WORK STILL EMERGES FROM THE TARIFF FILING ROOM THE TARIFFS ARE COMPLICATED BECAUSE SHIPPING RATES CHANGE WHILE SOME TRUCKERS REFER TO MILEAGE CHARTS OR TABLES MANY ACTUALLY SPELL OUT RATES FOR CARRYING EACH PRODUCT TO EACH DESTINATION CITY FROM EACH ORIGIN CITY AS WELL AS SPECIFYING THE DISCOUNT FOR EACH CUSTOMER TARIFFS ALONE FOR YELLOW CORP A MOTORCARRIER HOLDING COMPANY FILL 200 BINDERS AND THE NUMBER OF TRUCKING CONCERNS HAS DOUBLED SINCE DEREGULATION WHY DO ALL THOSE TARIFFS STILL HAVE TO BE FILED WHEN THE ICC NO LONGER REGULATES TRUCKING RATES THE INTERSTATE COMMERCE ACT HASN'T BEEN REPEALED DECLARES CHARLES E LANGYHER CHIEF OF THE SECTION OF TARIFFS TARIFF FILINGS WERE AIMED AT PREVENTING TRUCKERS FROM DISCRIMINATING AGAINST CERTAIN CUSTOMERS BUT NOW SHIPPERS JUST CALL A RIVAL IF THEY DON'T LIKE A TRUCKER'S PRICES MR LANGYHER SAYS NOBODY HAS MADE A RATEDISCRIMINATION COMPLAINT IN MORE THAN A DECADE ICC OFFICIALS SAY A MANUFACTURER CONSIDERING LOCATING A FACTORY SOMEWHERE COULD USE TARIFFS TO CHECK THE LOCAL TRUCKING RATES BUT THE MANUFACTURER WOULD FACE A DAUNTING ARRAY OF TABLES CROSSREFERENCES AND REVISIONS AS CATHY STAMBACK DEMONSTRATES BY THUMBING THROUGH SCHNEIDER NATIONAL INC'S BLUE BINDERS MS STAMBACK WHO WORKS FOR ONE OF SIX TARIFFWATCHING FIRMS THAT RENT SPACE AT THE ICC SAYS THAT IN 2 1/2 HOURS SHE COULD FIND WHAT THE WISCONSIN TRUCKING COMPANY CHARGES TO SHIP PRINTED MATTER TO SAY MIAMI FROM OSHKOSH WIS SOME OF THIS BELONGS ACROSS THE STREET SHE SAYS NODDING TOWARD THE SMITHSONIAN INSTITUTION THE FOLKS AT SCHNEIDER LIKE MANY TRUCKING COMPANIES WOULD BE HAPPY IF TARIFFS WERE INDEED CONSIGNED TO HISTORY THE COMPANY SAYS IT WILL ASSIGN FOUR EMPLOYEES AND PAY 20000 IN FILING FEES THIS YEAR TO RECORD ITS RATES TO RAISE PRICES TRUCKERS MUST WAIT AT LEAST A WEEK AFTER FILING A TARIFF A DELAY THAT COULD COST A BUNDLE IF FUEL PRICES ROSE SUDDENLY BUT OTHER TRUCKERS SAY THEY LIKE THE TARIFFFILING REQUIREMENT BECAUSE IT KEEPS PRICES MORE PREDICTABLE LABOR GROUPS ALSO SUPPORT IT CUSTOMERS OF THOSE TRUCKING COMPANIES RELY ON THE ICC FOR ANOTHER REASON IN THE PAST FEW YEARS MANY HAVE BEEN SUED BY THE BANKRUPTCY TRUSTEES OF DEFUNCT TRUCKING COMPANIES FOR GETTING LOWER RATES THAN THE TARIFFS SPELLED OUT TARIFF RATES WERE ROUTINELY IGNORED IN THE 1980S RICHARD JOHNSON COOWNER OF A CARPET WHOLESALER IN TAMPA FLA SAYS HE DIDN'T EVEN KNOW TARIFFS STILL EXISTED UNTIL HE GOT TWO BOXES FULL OF BILLS LAST YEAR FROM THE TRUSTEE OF BGR TRANSPORTATION CO OF CALHOUN GA THE ICC HAS HELPED HIM AND HUNDREDS LIKE HIM DEFEAT THE TRUSTEES' CLAIMS MR JOHNSON SAYS THE AGENCY DECREED THAT THE TARIFF THAT CAME BACK TO HAUNT HIM WAS INVALID IN THE FIRST PLACE BECAUSE THE NOWDEFUNCT TRUCKING COMPANY NEVER FILED THE PROPER PAPERWORK WHEN IT CHANGED ITS NAME WHILE MR JOHNSON CALLS THE ICC FILING CLERKS HE ALSO HOPES THE AGENCY STICKS AROUND UNDER MS MCDONALD A DEMOCRAT THE ICC IS TRYING TO MAKE TARIFFS MORE RELEVANT THE AGENCY HAS HIRED NINE NEW INSPECTORS TO READ FILINGS IT INSTALLED THREE FACSIMILE MACHINES LAST MONTH TO RECEIVE COPIES OF CONTRACTS AND IT PLANS TO START MAKING TARIFFS AVAILABLE ELECTRONICALLY THE AGENCY HAS ALSO HALVED ITS MANAGEMENT RANKS CUT PAPERWORK AND SET UP A TOLLFREE TELEPHONE NUMBER FOR COMPLAINTS FROM CITIZENS WE CALL THEM CUSTOMERS THE AGENCY SAYS LAST WEEK THE COMMISSION SAID IT WOULD HOLD 36 TRAINING SEMINARS IN 29 STATES ON A TARIFF LAW PASSED BY CONGRESS LAST YEAR IT RECENTLY HELD BROWNBAG LUNCHES FOR EMPLOYEES TO LEARN WHAT OTHER EMPLOYEES DO CONGRESS HAS AN INTEREST IN KEEPING THE ICC ALIVE DESPITE THE AGENCY'S LACK OF REAL POWER THE ICC CAN HELP LAWMAKERS LOOK IMPORTANT TO THE FOLKS BACK HOME MEMBERS OF CONGRESS SOMETIMES PASS ON COMPLAINTS TO THE ICC ABOUT MOVING COMPANIES THAT WON'T PAY AFTER BREAKING CONSTITUENTS' BELONGINGS AND THEY DEMAND THAT THE ICC HOLD PUBLIC HEARINGS WHEN A RAILROAD ASKS FOR PERMISSION TO ABANDON MONEYLOSING STRETCHES OF TRACK CONGRESSIONAL INTERVENTION IS LARGELY FOR SHOW THOUGH IN THE PAST FOUR FISCAL YEARS RAILROADS ABANDONED ENOUGH TRACK TO REACH MIAMI FROM SEATTLE AND BACK THE TRACK THE ICC STOPPED RAILROADS FROM GIVING UP WOULD BARELY MAKE THE ROUND TRIP FROM SEATTLE TO TACOMA AND THE ICC IMPOSED JUST ONE FINE AGAINST AN ERRANT MOVER IN THAT TIME ICC OFFICIALS SAY THAT A PHONE CALL IS USUALLY ENOUGH TO GET A MOVING COMPANY TO SHAPE UP AND THAT THE AGENCY PUTS CONDITIONS ON MANY OF THE RAIL ABANDONMENTS IT APPROVES LAWMAKERS' STATURE DEPENDS PARTLY ON HOW MANY AGENCIES THEIR COMMITTEES OVERSEE PROPOSALS TO ELIMINATE THE ICC HAVE GONE NOWHERE WITHIN THE SENATE AND HOUSE COMMITTEES WITH JURISDICTION OVER THE ICC AND WHEN HOUSE MEMBERS OUTSIDE TWO SUCH PANELS OFFERED AN AMENDMENT LAST FALL TO KILL THE AGENCY'S FUNDING 42 OF THE 58 COMMITTEE MEMBERS VOTED AGAINST IT REP JOHN KASICH OF OHIO WHO COSPONSORED THE AMENDMENT SAYS A FELLOW REPUBLICAN TOLD ME HE VOTED AGAINST IT BECAUSE I WAS MESSING WITH HIS JURISDICTION THAT SUPPORT ALSO WAS EVIDENT AT A CELEBRATION LAST MONTH TO MARK THE ICC'S 107TH BIRTHDAY THE AGENCY FORMALLY UNVEILED A BRONZE BUST OF CLYDE BRUCE AITCHISON A COMMISSIONER FROM 1917 TO 1952 AS AN EIGHTMAN MILITARY GUARD PRESENTED THE COLORS AND A 20MEMBER CHORUS SANG GOD BLESS AMERICA HOUSE PUBLIC WORKS AND TRANSPORTATION COMMITTEE CHAIRMAN NORMAN MINETA DISPLAYED AN ALARM CLOCK THAT PLAYS I'VE BEEN WORKING ON THE RAILROAD AND THE CALIFORNIA DEMOCRAT TOLD THE AGENCY HE WOULD DEFEND IT AGAINST THOSE WANTING TO CUT OFF THE FUNDING IT NEEDS SO ALL OF YOU CAN DO YOUR VERY VERY IMPORTANT JOBS 9404270206 940427 DIVIDEND NEWS VIKING OFFICE PRODUCTS INC VIKING OFFICE PRODUCTS INC LOS ANGELES SAID ITS BOARD APPROVED A 2FOR1 STOCK SPLIT EFFECTIVE MAY 31 AND SLATED FOR DISTRIBUTION JUNE 14 THE DIRECT MARKETER OF OFFICE PRODUCTS CURRENTLY HAS 211 MILLION COMMON SHARES OUTSTANDING 9404270205 940427 TECHNOLOGY & HEALTH AST RESEARCH NET INCREASED BY 20 IN FISCAL 3RD PERIOD BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL AST RESEARCH INC BOOSTED BY STRONG PERSONAL COMPUTER PRODUCTS SALES SAID NET ROSE 20 IN ITS FISCAL THIRD QUARTER THE IRVINE CALIF COMPANY REPORTED EARNINGS OF 132 MILLION OR 38 CENTS A SHARE FOR THE PERIOD ENDED APRIL 2 COMPARED WITH NET OF 11 MILLION OR 35 CENTS A SHARE IN THE YEAREARLIER QUARTER SALES ROSE 60 TO 5913 MILLION FROM 3703 MILLION REFLECTING IN PART AST'S ACQUISITION LAST SUMMER OF TANDY CORP'S PERSONAL COMPUTER BUSINESS LIKE OTHER BIG PC MAKERS AST ALSO CONTINUES TO BENEFIT AS CUSTOMERS SHIFT TO BRANDNAME PCS FROM LESSERKNOWN CLONES THE RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS AST'S STOCK ROSE 75 CENTS TO 19 IN NASDAQ STOCK MARKET TRADING AST'S RESULTS FURTHER DEMONSTRATE THE CONTINUING STRENGTH OF THE PC INDUSTRY IN RECENT DAYS SUCH PC HEAVYWEIGHTS AS COMPAQ COMPUTER CORP INTEL CORP AND MICROSOFT CORP HAVE ALL REPORTED HEALTHY REVENUE GAINS IN THE MOST RECENT QUARTER THE PC INDUSTRY IS VERY STRONG RIGHT NOW SAID ANDREW J NEFF ANALYST AT BEAR STEARNS & CO IN NEW YORK MR NEFF RECENTLY RAISED TO BUY FROM HOLD HIS RATING ON THE AST STOCK NOTING THAT DEMAND FOR PCS HAS ACCELERATED ANALYSTS SAY AST IS WELLPOSITIONED TO COMPETE MR NEFF SAYS THE COMPANY IS BROADLY REPRESENTED IN PRODUCTS RANGING FROM NEW PCS BASED ON INTEL'S PENTIUM CHIP TO COLOR NOTEBOOK COMPUTERS HE ADDS AST ALSO DISTRIBUTES ITS PRODUCTS WIDELY AST HAS ALREADY MADE GREAT STRIDES IN GAINING MARKET SHARE LAST YEAR AST'S US SHIPMENTS EXCLUDING THE TANDY ACQUISITION GREW 66 TO 530000 MACHINES SAYS INTERNATIONAL DATA CORP A FRAMINGHAM MASS MARKETRESEARCH FIRM INCLUDING TANDY'S SALES AST WAS THE NO 5 PC MAKER IN THE US LAST YEAR JUST AHEAD OF DELL COMPUTER CORP FOR ITS FIRST NINE MONTHS AST REPORTED PROFIT OF 394 MILLION OR 118 A SHARE COMPARED WITH NET OF 333 MILLION OR 104 A SHARE REVENUE JUMPED TO 178 BILLION FROM 1 BILLION 9404270204 940427 INSIDER TRADING SPOTLIGHT FRIDAY WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED W1000 OR MORE CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9404270203 940427 SHAWMUT SEES FED SOON CLEARING PLAN TO ACQUIRE A BANK BY SUZANNE ALEXANDER RYAN STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON JOEL B ALVORD CHAIRMAN AND CHIEF EXECUTIVE OF SHAWMUT NATIONAL CORP SAID HE IS CONFIDENT THE BANK'S APPLICATION TO ACQUIRE NEW DARTMOUTH BANK WILL BE APPROVED BY THE FEDERAL RESERVE BOARD IN A FEW DAYS MR ALVORD'S STATEMENT AT SHAWMUT'S ANNUAL MEETING HERE INDICATED THAT THE COMPANY'S PLANS FOR EXPANSION MAY BE BACK ON TRACK SHAWMUT HAS A STRING OF ACQUISITIONS PENDING AND HAS INDICATED THAT REGULATORY CLEARANCE OF THEM WAS AWAITING A MOVE ON NEW DARTMOUTH THE ACQUISITIONS WOULD ADD 4 BILLION TO SHAWMUT'S ASSETS OF 2739 BILLION LAST NOVEMBER THE FED SURPRISED THE BANKING WORLD BY DENYING SHAWMUT'S APPLICATION TO ACQUIRE NEW DARTMOUTH OF MANCHESTER NH CITING QUESTIONS ABOUT SHAWMUT'S MINORITYLENDING RECORD IT WAS THE FIRST TIME THE FED CITED FAIRLENDING LAWS IN REJECTING A BANK APPLICATION AND SIGNALED A TOUGHER REGULATORY STANCE AGAINST DISCRIMINATORY LENDING PRACTICES SHAWMUT MORTGAGE CORP A UNIT OF SHAWMUT NATIONAL SETTLED LENDINGDISCRIMINATION CHARGES WITH THE JUSTICE DEPARTMENT IN DECEMBER AGREEING TO SET UP A 960000 FUND TO COMPENSATE BLACKS AND HISPANICS WHO MAY HAVE BEEN UNFAIRLY DENIED MORTGAGES IN COMMENTS TO SHAREHOLDERS HERE MR ALVORD SAID WE NOW BELIEVE WE HAVE RESOLVED ALL OF THE ISSUES RAISED BY THE FED A FED SPOKESMAN CONFIRMED THAT SHAWMUT'S APPLICATION IS SCHEDULED FOR RECONSIDERATION TOMORROW BUT HE DECLINED TO SPECULATE ON A POSSIBLE FED DECISION LIKE MANY NEW ENGLAND BANKS SHAWMUT BASED IN HARTFORD CONN WANTS TO GROW THROUGH REGIONAL ACQUISITIONS CURRENTLY THE COMPANY IS WAITING FOR FED APPROVAL TO ACQUIRE PEOPLES BANCORP OF WORCESTER INC WORCESTER MASS GATEWAY FINANCIAL CORP NORWALK CONN WEST NEWTON SAVINGS BANK NEWTON MASS AND COHASSET SAVINGS BANK COHASSET MASS THE COMPANY ALSO PLANS TO ACQUIRE 10 NEW ENGLAND BRANCHES OF A UNIT OF NORTHEAST FEDERAL CORP AT THE ANNUAL MEETING SHAREHOLDERS APPROVED A PLAN TO INCREASE THE NUMBER OF COMMON SHARES SHAWMUT IS AUTHORIZED TO ISSUE PARTLY TO ALLOW THE COMPANY TO PURSUE NEW ACQUISITIONS UNDER THE APPROVED PLAN SHAWMUT IS AUTHORIZED TO ISSUE 300 MILLION SHARES UP FROM 150 MILLION SHARES IT IS IMPORTANT IN AN INDUSTRY THAT IS CONSOLIDATING RAPIDLY TO HAVE FLEXIBILITY IN OUR CAPITAL STRUCTURE MR ALVORD SAID 9404270202 940427 INTERNATIONAL AFTER QUITTING JAPAN COALITION SOCIALISTS ENJOY THE SPOTLIGHT BY MICHAEL WILLIAMS AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO TOMIICHI MURAYAMA HAS GONE FROM POLITICAL GOAT TO POTENTIAL HERO IN THE SPACE OF A DAY LATE MONDAY THE WIZENED BUSHYBROWED LEADER OF JAPAN'S SOCIALIST PARTY LOOKED LIKE THE PROVERBIAL 98POUND WEAKLING AS FELLOW MEMBERS OF THE RULING COALITION BANDED TOGETHER IN A NEW BLOC TO NEUTRALIZE THE LEFTISTS BY YESTERDAY AFTERNOON AFTER THE SOCIALISTS SHOCKED THEIR ERSTWHILE ALLIES BY BOLTING THE RULING ALLIANCE MR MURAYAMA'S PUTATIVE BULLIES WERE BEGGING HIM TO COME BACK TSUTOMU HATA JAPAN'S NEW PRIME MINISTER WAS RUMORED TO BE PLANNING A MERCYBEGGING CALL ON MR MURAYAMA AT SOCIALIST HEADQUARTERS YUICHI ICHIKAWA THE HARDENED POLITICAL OPERATIVE WHO IS SAID TO PULL THE STRINGS AT THE BUDDHISTBACKED KOMEITO PARTY SWALLOWED HIS PRIDE ON NATIONAL TELEVISION THERE IS NOTHING TO DO BUT APOLOGIZE MR ICHIKAWA SAID HIS FACE TWISTING IN EMBARRASSMENT JAPAN'S LATEST POLITICAL DRAMA AGAIN DEMONSTRATES THAT POLITICS HERE HAS BECOME AS STABLE AS MOUNTAIN WEATHER IF YOU DON'T LIKE THE STATUS QUO STICK AROUND FOR A BIT POLITICAL ANALYST HIROSHI KURIBAYASHI OF CS FIRST BOSTON JAPAN LTD SAYS HIS MEDIUMTERM OUTLOOK FOR TOKYO NOW MEASURES ALL OF TWO WEEKS THE BREAKUP OF THE COALITION MAKES IT MUCH LESS LIKELY THAT JAPAN CAN PRESENT THE US AND OTHER ALLIES WITH SOME CRITICAL ECONOMIC STEPS BY ITS SELFIMPOSED JULY DEADLINE HIGH ON WASHINGTON'S WISH LIST ARE AN INCOMETAX CUT AND MARKETOPENING MEASURES STEPS THAT WOULD HELP BOOST IMPORTS OF US GOODS SUCH CONCERNS SEEM FAR FROM POLITICIANS' MINDS THESE DAYS HOWEVER MR HATA ENTERED HIS SECOND DAY AS PRIME MINISTER YESTERDAY WITHOUT A CABINET AS THE REMAINING COALITION MEMBERS TRIED TO LURE THE SOCIALISTS BACK WITHOUT THE 74MEMBER LEFTIST PARTY THE COALITION IS SOME 69 VOTES SHORT OF A MAJORITY MAKING IT EXTREMELY DIFFICULT TO PASS LEGISLATION BUT THE NEWLY CONFIDENT SOCIALISTS WHO SEEM TO BE ENJOYING THE THRILL OF HAVING TURNED THE TABLES ON THEIR FORMER FRIENDS ARE LIKELY TO PLAY HARD TO GET KAZO WATANABE A SOCIALIST LEGISLATOR AND CLOSE ASSOCIATE OF MR MURAYAMA DENOUNCED THE OTHER COALITION PARTIES IN A PHONE INTERVIEW FOR HAVING AMBUSHED THE SOCIALISTS IN AN ATTACK IN THE DARKNESS THEN HE SWITCHED RHETORICAL GEARS SUPPOSE ONE OF A MARRIED COUPLE COMMITS ADULTERY SAID MR WATANABE DO YOU REALLY THINK IT IS POSSIBLE FOR THE COUPLE TO RETURN TO THE ORIGINAL RELATIONSHIP WHOLEHEARTEDLY THERE SEEMS TO BE NO OTHER WAY BUT TO START AFRESH THE ROLE OF CAD IS BEING PLAYED BY ICHIRO OZAWA A STOCKY TOUGHLOOKING POWER BROKER WHO IS THE COALITION'S MASTER STRATEGIST CONSIDERED TO BE THE REAL MASTERMIND BEHIND PRIME MINISTER HATA NOW A FEW PEOPLE ARE HAVING SECOND THOUGHTS ABOUT HIS BRILLIANCE IN THE HOURS BEFORE THE SOCIALISTS SPLIT FROM THE COALITION TELEVISION COMMENTATORS PORTRAYED THE JILTING OF THE LEFTISTS AS MR OZAWA'S WAY OF GETTING THE INTRANSIGENT PARTY TO GO ALONG WITH THE COALITION ON SUCH THORNY ISSUES AS TAX REFORM IF THE SOCIALISTS SAW THEMSELVES IN DANGER OF BEING FROZEN OUT WENT THE REASONING THEY WOULD BEND TO MR OZAWA IT WAS SO EMBARRASSING FOR THE SOCIALISTS SAID SHIGENORI OKAZAKI POLITICAL ANALYST AT SBCI SECURITIES IN TOKYO THEY HAD HAD ENOUGH THAT WAS MR OZAWA'S MISCALCULATION IT'S UNCLEAR HOW MUCH OF YESTERDAY'S SCRAMBLING WAS MERE POLITICAL THEATER APOLOGIES TO THE SOCIALISTS MAY BE A WAY OF DOING PENANCE FOR STIFFARMING MR MURAYAMA WITHOUT MAKING ANY SUBSTANTIAL CONCESSIONS INDEED THE LAST LAUGH MAY BE ON THE SOCIALISTS WHOSE STRENGTH HAS BEEN IN DECLINE FOR YEARS IN THE EIGHT MONTHS THEY REMAINED IN THE COALITION THE PARTY COMPROMISED LONGHELD POSITIONS ON A NUMBER OF ISSUES INCLUDING ITS OPPOSITION TO ALLOWING RICE IMPORTS AND TO RAISING SALES TAXES THE COALITION COULD WELL PUT TOGETHER A NEW MAJORITY BY POACHING SOCIALIST MEMBERS AND OTHER OPPOSITION POLITICIANS FOR NOW HOWEVER THE PARTY IS ENJOYING ITS NEWFOUND SELFRESPECT WE NOW FEEL REFRESHED BECAUSE WE DON'T HAVE TO MAINTAIN AN ALLIANCE THAT PRODUCED SO MUCH FRUSTRATION SAID MR WATANABE A NEW VITALITY IS COMING BACK TO US 9404270201 940427 TEXAS JOURNAL TEXAS HORSE RACING DON'T BET ON IT YET THE BIGGEST CONCERNS ARE RAISING MONEY AND BATTLING CASINOS BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL AS EVERY GAMBLER LEARNS THE FIRST DAY AT THE TRACK THERE ARE NO SURE BETS IN HORSE RACING IF FURTHER PROOF OF THAT TRUISM IS NEEDED CONSIDER THIS AS SAM HOUSTON RACE PARK IN HOUSTON PREPARES FOR ITS FRIDAY LAUNCH OF BIGLEAGUE HORSE RACING IN TEXAS A CROSSSTATE RIVAL GRAND PRAIRIE'S LONE STAR PARK IS SCRAMBLING TO RESCUE A 95 MILLION FINANCING THAT WAS REJECTED BY THE BOND MARKET LONE STAR OFFICIALS STILL HOPE TO OPEN THE TRACK BY MAY 1995 IN TIME TO PARTICIPATE IN A THREEWAY RACING CIRCUIT WITH SAM HOUSTON AND SAN ANTONIO'S RETAMA PARK NOW UNDER CONSTRUCTION BUT LONE STAR'S WOES ARE INDICATIVE OF THE TROUBLED STATE OF HORSE RACING IN TEXAS BESET BY FINANCIAL MISSTEPS LEGAL WRANGLINGS AND HEIGHTENED COMPETITION HORSE RACING IS MOVING FORWARD IN THE STATE BUT AT A PACE FAR SLOWER THAN ONCE EXPECTED BETWEEN 1987 WHEN PARIMUTUEL WAGERING ON DOGS AND HORSES WAS FIRST APPROVED BY THE VOTERS AND THIS WEEK'S OPENING OF THE HOUSTON TRACK THE ENVIRONMENT HAS CHANGED RADICALLY SAYS WILLIAM EADINGTON PROFESSOR OF ECONOMICS AND DIRECTOR OF THE INSTITUTE FOR THE STUDY OF GAMBLING AND INSTITUTIONAL GAMING AT THE UNIVERSITY OF NEVADA AT RENO I WOULD CERTAINLY BE VERY WARY IF IT WERE MY CAPITAL BEING INVESTED IN THAT FACILITY TO BE SURE PLENTY OF PEOPLE STILL GIVE THE INDUSTRY A GOOD SHOT AT WINNING FOR THEM TEXAS IS THE PROMISED LAND FOR HORSE RACING THE BIGGEST UNDEVELOPED PARIMUTUEL MARKET IN THE UNITED STATES AS NEW YORK RACING CONSULTANT EUGENE CHRISTIANSEN PUTS IT SUPPORTERS HAVE LONG POINTED TO TEXANS' HORSEBACK HERITAGE LOVE OF GAMBLING AND SHEER NUMBERS BUT WHILE A QUARTET OF MINORLEAGUE TRACKS HAVE CANTERED ALONG AND GREYHOUND RACING HAS TAKEN OFF ON THE GULF COAST THE ARRIVAL OF MAJORLEAGUE THOROUGHBRED AND QUARTERHORSE RACING HAS BEEN DELAYED FIRST BY THE POOR ECONOMY IN THE LATE 1980S AND THEN BY LAWSUITS AND DIFFICULTIES IN RAISING FUNDS AS A RESULT THE THREE MAJOR OR CLASS 1 TRACKS ARE COMING ON STREAM WHEN THERE IS PLENTY OF COMPETITION FOR GAMBLERS' DOLLARS FROM THE TEXAS LOTTERY TO NEWLY OPENED RIVERBOAT CASINOS IN LOUISIANA EVEN WORSE PROMOTERS OF CASINO GAMBLING HAVE SET THEIR SIGHTS ON TEXAS IF SUCCESSFUL IT COULD DEAL A MAJOR BLOW TO TEXAS RACETRACKS THE TEXAS TRACKS ALSO ARE OPENING AT A TIME WHEN THE INDUSTRY IS STRUGGLING NATIONWIDE THE PARIMUTUEL HANDLE THE TOTAL AMOUNT WAGERED AT US TRACKS HAS REMAINED FLAT FOR THE PAST SEVERAL YEARS EVEN AS CASINO GAMBLING HAS BOOMED TWO OF THE FIVE TRACKS BUILT IN THE PAST 10 YEARS IN THE US ARE CLOSED AND A THIRD BIRMINGHAM RACE COURSE IN ALABAMA RECENTLY REOPENED AS A COMBINATION HORSE AND GREYHOUND TRACK ONLY REMINGTON PARK IN OKLAHOMA CITY IS SEEN AS AN UNQUALIFIED SUCCESS CRITICS SAY HORSE RACING IN TEXAS HASN'T LIVED UP TO ITS PROMISE EITHER IN 1987 THE STATE PROJECTED THAT A 5 TAX ON HORSE WAGERS AND A 6 LEVY ON DOG BETTING WOULD BRING ABOUT 110 MILLION TO STATE COFFERS IN 1991 THE ACTUAL 1991 TAX REVENUE WAS ABOUT 114 MILLION LAST YEAR AFTER THE TAX WAS LOWERED TO ENCOURAGE THE CONSTRUCTION OF MAJOR RACING FACILITIES PARIMUTUEL BETS CONTRIBUTED ABOUT 89 MILLION THE GAP WAS IN PART DUE TO THE DELAYS IN TRACK OPENINGS BUT MORE WORRISOME SINCE PARIMUTUEL BETTING BEGAN IN 1989 THE STATE'S THREE CLASS 2 TRACKS HAVE SEEN A STEADY DROP IN AVERAGE DAILY ATTENDANCE AND AVERAGE DAILY HANDLE A LICENSE FOR A CLASS 1 TRACK GIVES AN OPERATOR THE EXCLUSIVE FRANCHISE IN ONE OF THE STATE'S MOSTPOPULATED AREAS IN RETURN THE OPERATOR IS EXPECTED TO BUILD A TRACK OF A CERTAIN SIZE WITH SUCH AMENITIES AS LUXURY BOXES AND RESTAURANTS CLASS 2 TRACKS ON THE OTHER HAND ARE SMALLER FACILITIES IN SMALLER CITIES THE DECLINES AT THE CLASS 2 TRACKS HAVE BEEN PARTLY OFFSET BY SIMULCASTING BETTING ON RACES BROADCAST AT THE TRACK FROM TRACKS AROUND THE COUNTRY TRINITY MEADOWS THE LARGEST OF THE EXISTING TRACKS TOOK IN MORE THAN 14 MILLION DURING ITS 41DAY SIMULCAST MEET IN FEBRUARY AND JANUARY RIVALING THE RESULTS OF OFFTRACKBETTING PARLORS IN LAS VEGAS FOR THE SAME RACES PART OF HORSE RACING'S WOES CAN BE TRACED TO THE TEXAS LOTTERY WHICH BEGAN IN MAY 1992 AND REDUCED THE POOL OF RACING DOLLARS TOTAL WAGERING ON HORSES FELL 7 AND ATTENDANCE WAS OFF 22 IN 1993 THE RACING INDUSTRY SEES AN EVEN BIGGER THREAT IN CASINOS IN MINNESOTA FOR INSTANCE THE SUDDEN APPEARANCE OF MORE THAN 20 INDIANRUN CASINOS PUSHED STRUGGLING CANTERBURY DOWNS IN SHAKOPEE MINN OVER THE EDGE ITS PARKING LOT IS NOW USED FOR REMOTE PARKING BY A NEARBY CASINO TO OPEN THE FLOODGATES TO COMPETE WITH THE HORSERACING INDUSTRY WHEN IT IS IN ITS INFANCY COULD BE DEVASTATING SAYS JEFF HOOPER EXECUTIVE DIRECTOR OF THE TEXAS THOROUGHBRED BREEDERS ASSOCIATION SOME TRACK OPERATORS ARE HEDGING THEIR BETS LAST MONTH HOUSTONBASED MAXXAM INC WHICH HAS A STAKE IN THE SAM HOUSTON TRACK ANNOUNCED PLANS WITH MIRAGE RESORTS INC OF LAS VEGAS TO DEVELOP A 300 MILLION CASINOHOTEL COMPLEX IN DOWNTOWN HOUSTON IF CASINO GAMBLING IS LEGALIZED OFFICIALS AT MAXXAM SEE A CASINO AND RACETRACK AS COMPLEMENTARY EACH ATTRACTING MORE VISITORS TO TEXAS WE'RE THINKING THAT IF A LITTLE ENTERTAINMENT IS GOOD MAYBE MORE ENTERTAINMENT IS BETTER SAYS BYRON WADE MAXXAM'S DEPUTY GENERAL COUNSEL WHILE THE REST OF THE HORSE INDUSTRY ISN'T AS SANGUINE THEY ARE TRYING NOT TO LET POSSIBLE DANGERS OVERSHADOW THE START THEY HAVE BEEN WAITING FOR THE CLASS 2 TRACKS HAVE BEEN OUR DOUBLEA AND TRIPLEA FARM TEAMS BUT NOW WE'RE READY FOR THE BIG LEAGUES MR HOOPER SAYS THAT SAID WHAT'S THE CURRENT LINE ON THE MAJOR TRACKS THE FIRST TRACK TO BE AWARDED A CLASS 1 LICENSE SAM HOUSTON HAD TROUBLE FROM THE OUTSET A PLAN TO HAVE HARRIS COUNTY FINANCE THE 85 MILLION FACILITY WITHERED UNDER COMMUNITY OPPOSITION AND THE PARTNERSHIP THAT ORIGINALLY WON THE LICENSE SOLD ITS 28 STAKE TO MAXXAM TAPPING INTO MAXXAM'S CREDIBILITY ON WALL STREET SAM HOUSTON SOLD 75 MILLION IN BONDS LAST YEAR THE SPECULATIVE NATURE OF RACETRACKS MEANT A STEEP 1175 INTEREST RATE AND THE OWNERS HAD TO GIVE UP 15 OF THE EQUITY TO BONDHOLDERS STILL THE BONDS WERE OVERSUBSCRIBED BY 100 MILLION AND HAVE TRADED RECENTLY AT 20 ABOVE PAR SAM HOUSTON FACES THE MOST DIRECT COMPETITION FROM OTHER FORMS OF WAGERING AS BUSLOADS OF TOURISTS HEAD DOWN INTERSTATE 10 TO GAMBLE AT THE NEW DOCKSIDE CASINOS IN NEW ORLEANS AND MISSISSIPPI STILL TRACK OFFICIALS BELIEVE THEY WILL RIDE THE PENTUP DEMAND FOR MAJORLEAGUE RACING TO AN EARLY LEAD OVER RIVAL FORMS OF GAMBLING THERE'S REASON TO THINK THEY'RE RIGHT THE TRACK SOLD ALL 19 OF ITS 45000 TO 65000 LUXURY BOXES BEFORE IT COULD ADVERTISE THEM IT RECEIVED 4500 APPLICATIONS FOR 1200 STALLS LEAVING SOME OWNERS AND TRAINERS SCRAMBLING FOR STABLE SPACE RETAMA'S DEVELOPERS BROTHERS JOE AND DAVID STRAUS OF SAN ANTONIO HAVE BEEN PUSHING TEXAS HORSE RACING FOR ABOUT AS LONG AS ANYONE BUT TO BUILD THEIR TRACK THEY HAD TO SURRENDER OWNERSHIP LIKE SAM HOUSTON'S OWNERS THE STRAUSES WERE REBUFFED IN THEIR FIRST ATTEMPT TO ARRANGE FINANCING FOR THE 75 MILLION TRACK WE FOUND IT WOULD REQUIRE A LOT MORE EQUITY AND BE MORE EXPENSIVE ALL THE WAY SAYS JOE STRAUS III THE TRACK'S DIRECTOR OF MARKETING TO REDUCE THE COSTS INVESTMENT BANKERS RAUSCHER PIERCE REFSNES INC IN DALLAS ARRANGED FOR THE CITY OF SELMA A SAN ANTONIO SUBURB OF 600 TO ISSUE TAXEXEMPT MUNICIPAL BONDS THE CITY WILL OWN THE TRACK LEASING IT TO THE STRAUSES BUT WON'T BE LIABLE FOR REPAYING THE DEBT WHICH WILL BE PAID OUT OF THE TRACK'S PROCEEDS THE ARRANGEMENT RESULTED IN AN INTEREST RATE OF 875 ON THE 25YEAR BONDS AND THE STRAUS PARTNERSHIP SURRENDERED ITS EQUITY FOR A 40 MILLION SUBORDINATED NOTE ON THE TRACK ON WHICH IT WILL RECEIVE OVER 4 MILLION A YEAR IN INTEREST PAYMENTS AGAIN PAYABLE OUT OF TRACK PROCEEDS THE TRACK SET TO OPEN NEXT APRIL EXPECTS TO DRAW ONLY ABOUT 7000 FANS A DAY DURING THE FIRST YEAR AND LESS AFTER THAT AND ITS PROJECTED AVERAGE WAGER IS SMALLER THAN AT SAM HOUSTON OR LONE STAR STILL RETAMA IS EXPECTED TO BENEFIT FROM SIMULCASTING IF TEXAS' CLASS 1 TRACKS GET TOGETHER TO BROADCAST ONE ANOTHER'S RACES AND IT IS THE FARTHEST OF THE BIG TRACKS FROM GAMING COMPETITION IN LOUISIANA AND ON THE GULF COAST SAN ANTONIO IS MUCH MORE INSULATED FROM THAT PROCESS THAN HOUSTON WOULD BE SAYS MR CHRISTIANSEN THE NEW YORK CONSULTANT WHOSE FIRM PREPARED RETAMA'S FEASIBILITY STUDY THINGS SEEMED SO PROMISING FOR GRAND PRAIRIE'S LONE STAR PARK THE CLASS 1 TRACK HAD THE ADVANTAGE OF FINANCIAL BACKING FROM THE CITY OF GRAND PRAIRIE WHERE VOTERS APPROVED A HALFCENT SALES TAX TO HELP PAY IT ITS CHOSEN SITE BETWEEN DALLAS AND FORT WORTH IS IN THE MIDDLE OF THE STATE'S SECONDLARGEST METROPOLITAN AREA AND THE PLANNED 105 MILLION TRACK WOULD BE THE STATE'S BIGGEST BUT IT BECAME BOGGED DOWN IN LEGAL BATTLES WITH THE TRACKS IT BEAT OUT FOR THE CLASS 1 LICENSE FINALLY SETTLING THE DISPUTES BY PAYING OFF ITS RIVALS AND AGREEING TO TRINITY MEADOWS' BID APPROVED BY STATE AUTHORITIES FOR A TEMPORARY CLASS 1 LICENSE THE TWOYEAR TEMPORARY LICENSE CAN BECOME PERMANENT IF TRINITY MEADOWS MAKES CERTAIN IMPROVEMENTS TO ITS FACILITIES IT SPENT SIX MONTHS NEGOTIATING THE AGREEMENT WITH GRAND PRAIRIE MORE RECENTLY STEPHENS INC A LITTLE ROCK ARK INVESTMENTBANKING FIRM FAILED TO SELL ABOUT 95 MILLION IN LONE STAR DEBT LAST WEEK LONE STAR SAID IT HIRED OPPENHEIMER & CO OF NEW YORK TO HELP COMPLETE THE BOND OFFERING CITY OFFICIALS BLAMED THE FAILURE ON THE RECENT INCREASES IN INTEREST RATES AND THE UNUSUAL STRUCTURE OF THE BOND DEAL A DELAY IN OPENING COULD LEAVE LONE STAR WITH THE LAST PICK FOR THE BEST RACING DAYS AND FORCE IT TO MISS THE CROWDS FLOCKING TO NEIGHBORING ARLINGTON FOR MAJOR LEAGUE BASEBALL'S ALLSTAR GAME CONSTRUCTION IS CONTINUING BUT IT'S GOING TO BE TOUCH AND GO SAYS WAYNE USRY GRAND PRAIRIE'S CHIEF FINANCIAL OFFICER AS IT HAS BEEN FOR A GOOD PART OF THIS PROGRAM 9404270200 940427 MARKETING & MEDIA CAPITAL CITIES/ABC NET NEARLY DOUBLED IN THE FIRST QUARTER NEW YORK CAPITAL CITIES/ABC INC SAID FIRSTQUARTER NET INCOME NEARLY DOUBLED AS STRONGER ADVERTISER DEMAND SIGNIFICANTLY BOOSTED BROADCAST REVENUE THE UNEXPECTEDLY STRONG EARNINGS SENT THE STOCK TO 715 UP 25 OR 1775 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE COMPANY REPORTED NET FOR THE QUARTER ROSE TO 1161 MILLION OR 756 A SHARE FROM 584 MILLION OR 355 A SHARE A YEAR AGO CAPITAL CITIES/ABC NOTED THAT THE FIRST QUARTER INCLUDED SIX MORE DAYS THAN THE YEARAGO QUARTER AND AVERAGE SHARES IN THE LATEST QUARTER WERE 71 LOWER THAN IN 1993 BECAUSE OF COMPANY STOCK REPURCHASES THE YEARAGO QUARTER ALSO INCLUDED AN EXTRAORDINARY CHARGE OF 121 MILLION OR 74 CENTS A SHARE RELATED TO EARLY DEBT REDEMPTIONS IN ADDITION THE BROADCAST OF THE ACADEMY AWARDS OCCURRED IN THE FIRST QUARTER OF 1994 RATHER THAN THE SECOND QUARTER WHEN IT WAS AIRED IN 1993 THE EFFECT OF THESE DIFFERENCES WAS TO INCREASE PERSHARE EARNINGS BY ABOUT 1 A SHARE THE COMPANY SAID EXCLUDING THE SIX DAYS AND THE EFFECT OF THE ACADEMY AWARDS BROADCAST FIRSTQUARTER OPERATING PROFIT INCREASED 34 REVENUE AT THE MEDIA CONCERN ROSE 19 TO 140 BILLION FROM 118 BILLION BROADCAST REVENUE WAS UP 21 CAP CITIES'S EARNINGS WERE BETTER THAN THE CONSENSUS OF ANALYSTS' ESTIMATES THERE'S NO QUESTION THAT IT'S AN IMPRESSIVE QUARTER SAID JOHN S REIDY A MEDIA ANALYST AT SMITH BARNEY SHEARSON MR REIDY SAID THAT HE ESTIMATED BROADCASTING PROFIT EVEN TAKING OUT THE DOLLAR AFTER TAX WOULD HAVE BEEN UP AT LEAST BY A THIRD 9404270199 940427 WHO'S NEWS HEARST'S KAMINSKY RESIGNS AS PRESIDENT OF THE BOOK GROUP NEW YORK HEARST CORP ANNOUNCED THE RESIGNATION OF HOWARD KAMINSKY PRESIDENT OF THE HEARST BOOK GROUP EFFECTIVE IMMEDIATELY MR KAMINSKY 54 YEARS OLD SAID IN A STATEMENT THAT HE IS LEAVING AFTER SIX YEARS IN THE JOB BECAUSE OF FAMILY CONCERNS WHICH REQUIRE MY BEING AWAY FROM THE OFFICE MOST OF THE WORKWEEK HE SAID HE WILL CONTINUE AS A CONSULTANT TO THE COMPANY THE MOVE DIDN'T SURPRISE ANYONE IN THE PUBLISHING COMMUNITY COMING AFTER MORE THAN A YEAR OF SPECULATION THAT HEARST WASN'T SATISFIED WITH MR KAMINSKY'S LEADERSHIP OF THE BOOK DIVISION LAST FALL HEARST CONFIRMED REPORTS THAT IT WAS SHOPPING THE BOOK DIVISION WHICH INCLUDES WILLIAM MORROW & CO AND PAPERBACK PUBLISHER AVON BOOKS TO POSSIBLE BUYERS PEOPLE FAMILIAR WITH THE BOOK GROUP'S FINANCIAL CONDITION SAY ITS PROFITS HAVE DECLINED IN RECENT YEARS AND MORROW ESPECIALLY HAS LOST A STRING OF PROMINENT EDITORS AND WRITERS INCLUDING JOHN IRVING AND KEN FOLLETT IN LATE FEBRUARY HEARST ANNOUNCED THAT IT HADN'T FOUND A BUYER AND PLANNED TO REBUILD THE COMPANY ITSELF CLOSELY HELD HEARST WHICH ALSO PUBLISHES MAGAZINES AND NEWSPAPERS SAID IT WON'T REPLACE MR KAMINSKY THE COMPANY SAID THAT RICHARD P MALLOCH VICE PRESIDENT AND GENERAL MANAGER OF HEARST BOOKS/BUSINESS PUBLISHING WILL OVERSEE DAYTODAY OPERATIONS OF THE BOOK GROUP ALLEN MARCHIONI 53 CONTINUES AS PRESIDENT OF MORROW AND MICHAEL GREENSTEIN 47 REMAINS GENERAL MANAGER OF AVON FORMER HEARST BOOK GROUP EDITORS SAY THAT WHILE MR KAMINSKY WAS RESPONSIBLE FOR SOME OF THE COMPANY'S PROBLEMS THE PARENT COMPANY WAS GUILTY OF NEGLECT WHEN IT CAME TO THE BOOK GROUP AND DAMAGED MORALE BY LEAVING EMPLOYEES IN LIMBO ABOUT THEIR FUTURE NOW INSIDERS SAY HEARST IS CLEARLY TRYING TO RECRUIT A BATCH OF NEW EDITORS AND IS AGGRESSIVELY BIDDING FOR NEW BOOKS AT AUCTION TO BUILD UP DEPLETED INVENTORIES 9404270198 940427 WESBANCO BUYS BACK ITS STOCK WHEELING WVA WESBANCO INC SAID IT PLANS TO BEGIN REPURCHASING IMMEDIATELY AS MUCH AS 7 MILLION OF COMMON STOCK ON THE NASDAQ STOCK MARKET THE PRICE AND QUANTITY OF PURCHASES WILL BE AT ITS DISCRETION THE COMPANY SAID WESBANCO HAS 87 MILLION COMMON SHARES OUTSTANDING THE STOCK CLOSED UP 625 CENTS AT 26375 IN TRADING YESTERDAY THE COMPANY OPERATES 11 BANKS IN WEST VIRGINIA AND ONE IN OHIO 9404270197 940427 TECHNOLOGY & HEALTH EAR OPERATIONS CALLED UNNECESSARY FOR SOME KIDS BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL THE MOST COMMON SURGERY IN CHILDREN A SIMPLE OPERATION FOR CHRONIC EAR INFECTIONS AND FLUID BUILDUP MAY BE INAPPROPRIATE FOR A QUARTER OF CHILDREN UNDERGOING IT A REVIEW OF HEALTHPLAN RECORDS FOUND THE FINDING WOULD INDICATE THAT MORE THAN 150000 CHILDREN EACH YEAR ARE UNNECESSARILY UNDERGOING A TYMPANOSTOMY TUBE INSERTION IN WHICH A TINY TUBE IS IMPLANTED IN THE EAR DRUM TO DRAIN IT OF EXCESS FLUID AND PREVENT RECURRENT INFECTIONS IT WAS PERFORMED ON AN ESTIMATED 670000 CHILDREN IN 1988 THE ONLY FIGURE AVAILABLE THE STUDY OF MORE THAN 6600 OPERATIONS WAS CONDUCTED BY LAWRENCE C KLEINMAN A PEDIATRICIAN AT CHILDREN'S HOSPITAL IN BOSTON AND VALUE HEALTH SCIENCES A SAN DIEGO CALIF COMPANY THAT DOES UTILIZATION REVIEWS FOR HEALTH PLANS AND HEALTH INSURANCE CARRIERS A REVIEW PROCEDURE DEVELOPED BY VALUE HEALTH SCIENCES WAS USED TO EVALUATE PRECERTIFICATION REQUESTS FOR THE OPERATION MADE TO TWO LARGE UNNAMED HEALTH INSURANCE COMPANIES AND TO CLIENTS OF ANOTHER UTILIZATIONREVIEW ORGANIZATION FIVE PEDIATRICIANS AND FOUR OTOLARYNGOLOGISTS SET CRITERIA FOR OPERATING ON A CHILD FOR EXAMPLE THE PANEL AGREED THAT THE OPERATION WOULD BE APPROPRIATE IN A CHILD WITH MIDDLEEAR INFECTION IF ANTIBIOTICS HADN'T HELPED AND THE CHILD HAD HAD OTHER EAR INFECTIONS WITHIN THE PAST TWO YEARS IT WAS INAPPROPRIATE IF THIS WAS THE CHILD'S ONLY EAR INFECTION WITHIN TWO YEARS A TEAM OF NURSES POSED A SERIES OF QUESTIONS TO EVERY DOCTOR'S OFFICE THAT HAD SOUGHT APPROVAL FOR THE SURGERY WHERE THIS INITIAL REVIEW INDICATED THE OPERATION MIGHT HAVE BEEN INAPPROPRIATE A VALUE HEALTH SCIENCES PHYSICIAN DISCUSSED THE CASE WITH THE CHILD'S DOCTOR THE REVIEWERS RATED 23 OF THE TUBE INSERTIONS AS INAPPROPRIATE AND 42 AS APPROPRIATE DR KLEINMAN AND HIS COLLEAGUE REPORTED IN THIS WEEK'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION THE REMAINING 35 WERE CLASSED AS EQUIVOCAL WHEN THE PANELISTS DISAGREED ON WHETHER THE OPERATION WAS APPROPRIATE CHILDREN WHO HAD MIDDLEEAR INFECTIONS WITH FLUID BUILDUP FOR LESS THAN 30 DAYS WERE MOST LIKELY TO UNDERGO THE OPERATION INAPPROPRIATELY 97 OF SUCH CASES WERE RATED INAPPROPRIATE THE HIGHEST PROPORTION OF APPROPRIATE OPERATIONS WAS IN CHILDREN WHO HAD HAD SUCH INFECTIONS FOR MORE THAN 90 DAYS 9404270196 940427 NORTHERN TELECOM NET REVENUE ROSE MODESTLY IN 1ST PERIOD TORONTO NORTHERN TELECOM LTD AFTER A DISMAL 1993 SCORED A MODEST IMPROVEMENT IN NET INCOME AND REVENUE IN THE FIRST QUARTER BUT GROWTH PAINS CONTINUE TO PLAGUE THE COMPANY THE COMPANY'S SHARES ROSE 72 OR 2 TO CLOSE AT 29875 A SHARE IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE MOST ANALYSTS HAD BEEN EXPECTING A LOSS AT THE CANADIAN TELECOMMUNICATIONSEQUIPMENT SUPPLIER WHICH IS FIGHTING TO RECOVER FROM SOFTWARE PROBLEMS THAT BATTERED ITS US SWITCH BUSINESS AND FORCED NORTHERN TO RESTRUCTURE ITS RESEARCH AND DEVELOPMENT ACTIVITIES BUT NORTHERN MANAGED TO TURN A SMALL NET INCOME WHICH WAS FURTHER ENHANCED BY THE SALE OF A FIBEROPTICS FACILITY IN CANADA FIRSTQUARTER NET GREW ALMOST 16 TO 88 MILLION OR 35 CENTS A SHARE FROM 76 MILLION OR 30 CENTS A SHARE IN AN UNUSUALLY STRONG QUARTER A YEAR AGO HOWEVER 72 MILLION OR 29 CENTS A SHARE OF THAT NET CAME FROM THE SALE OF THE FACILITY IN SASKATOON SASKATCHEWAN MINUS THAT SALE NET INCOME WOULD HAVE FALLEN 79 TO 16 MILLION OR SIX CENTS A SHARE REVENUE GREW 3 TO 199 BILLION COMPARED WITH WITH 194 BILLION A YEAR AGO A NORTHERN SPOKESMAN SAID RESULTS WERE BETTER THAN EXPECTED GIVEN ANALYSTS' PREDICTIONS OF A LOSS IN THE QUARTER AND HE SAID CHAIRMAN JEAN MONTY EXPECTS THE COMPANY TO POST A PROFIT THIS YEAR STILL MANY OF NORTHERN'S NUMBERS CONTINUE TO GO IN THE WRONG DIRECTION COSTS CLIMBED BY 14 IN THE QUARTER TO 13 BILLION WHILE OPERATING PROFIT PLUNGED 68 TO 52 MILLION FROM 165 MILLION A YEAR AGO AND THE COMPANY'S GROSS PROFIT DROPPED 13 TO 692 MILLION R&D EXPENSES ALSO SHOWED A 35 DROPOFF TO 247 MILLION FROM 256 MILLION BUT THE SPOKESMAN SAID THIS QUARTER'S NUMBERS DIDN'T INCLUDE A PORTION OF THE 252 MILLION IN ADDITIONAL R&D THAT THE COMPANY BEGAN TO SPEND LAST YEAR TO SOLVE ITS SOFTWARE PROBLEMS OUR R&D IN THE QUARTER WAS ACTUALLY UP HE SAID 9404270195 940427 TECHNOLOGY & HEALTH EMPHYSEMA IS RELIEVED IN 20 PATIENTS AFTER SURGERY TO REMOVE PART OF LUNGS BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK REVIVAL OF A LONGIGNORED OPERATION SUCCESSFULLY RELIEVED THE CRIPPLING EFFECTS OF EMPHYSEMA IN 20 PATIENTS A ST LOUIS CHEST SURGEON REPORTED THE OPERATION THE FIRST RELIEF FOR ADVANCED EMPHYSEMA SHORT OF A LUNG TRANSPLANT INVOLVES REMOVING PART OF THE PATIENT'S ENLARGED LUNGS TO DECREASE THEIR SIZE AND LITERALLY GIVE THE LUNGS BREATHING ROOM BREATHING ABILITY FOLLOWING EXERTION HAS IMPROVED IN ALL 20 PATIENTS THE FIRST OF WHOM WAS OPERATED ON ONLY 15 MONTHS AGO SAID JOEL D COOPER A PIONEER LUNG TRANSPLANT SURGEON AT WASHINGTON UNIVERSITY IN ST LOUIS OF THE 14 EMPHYSEMA PATIENTS WHO HAD REQUIRED SUPPLEMENTAL OXYGEN BEFORE SURGERY 11 NO LONGER NEED SUCH AID INCLUDING THREE WHO HAD NEEDED OXYGEN EVEN WHEN THEY WERE SITTING OR LYING DOWN DR COOPER TOLD THE AMERICAN ASSOCIATION FOR THORACIC SURGERY MEETING HERE THE PROPORTION OF PATIENTS BREAKING FREE OF SUPPLEMENTARY OXYGEN MAY INCREASE AS SOME OF THE MOST RECENTLY OPERATED PATIENTS ARE REHABILITATED THEIR GETTING OFF SUPPLEMENTAL OXYGEN WAS A SURPRISE TO ME I WOULDN'T HAVE PREDICTED THAT DR COOPER SAID IN AN INTERVIEW THE AMERICAN LUNG ASSOCIATION CALLED DR COOPER'S PROCEDURE SURPRISINGLY PROMISING BUT MUST STILL BE REGARDED AS A RESEARCH PROCEDURE AND NEEDS CONTINUED CAREFUL STUDY BEFORE IT COULD BE RECOMMENDED FOR OTHER PATIENTS DR COOPER HIMSELF CAUTIONED THAT THE OPERATION DOESN'T CURE THE EMPHYSEMA AND SAID THE SURGERY ISN'T FOR EVERYONE WITH THE DISORDER HOW LONG THE BENEFITS WILL LAST IS UNKNOWN HE ADDED NOTHING IN MEDICINE IS EVER TOTALLY SUCCESSFUL HE SAID NOTING THAT TWO OF THE 20 PATIENTS ARE BETTER BUT NOT A LOT BETTER EMPHYSEMA WHICH IS MOST OFTEN CAUSED BY CIGARETTE SMOKING AFFLICTS AN ESTIMATED 16 MILLION AMERICANS ACCORDING TO THE AMERICAN LUNG ASSOCIATION IT IS A DISEASE IN WHICH THE TINY AIR SACS IN THE LUNGS OVERINFLATE AND ARE DAMAGED REDUCING THE AMOUNT OF OXYGEN GETTING INTO THE BLOOD THE LUNGS GRADUALLY STIFFEN AND LOSE THEIR ABILITY TO EXPAND AND RELAX AS THE PATIENT BREATHES OVER TIME THE LUNGS ENLARGE UNTIL THEY FILL THE CHEST CAVITY DR COOPER SAID THAT ABOUT SIX YEARS AGO A CANADIAN COLLEAGUE CALLED HIS ATTENTION TO A 1959 REPORT BY THE LATE OTTO BRANTIGAN A SURGEON AT THE UNIVERSITY OF MARYLAND IN BALTIMORE DR BRANTIGAN THOUGHT OF REMOVING PORTIONS OF THE DISEASED LUNGS GIVING THEM A CHANCE TO BREATHE BY REDUCING THEIR SIZE THE 1959 REPORT CLAIMED THAT 75 OF THE PATIENTS IMPROVED BUT FAILED TO GIVE ANY OBJECTIVE MEASUREMENTS OF HOW MUCH MOREOVER 16 OF THE PATIENTS DIED SHORTLY AFTER SURGERY AS A RESULT OTHER SURGEONS DIDN'T ATTEMPT THE OPERATION DR COOPER SAID HE BEGAN STUDYING THE LUNGS OF EMPHYSEMA PATIENTS RECEIVING LUNG TRANSPLANTS IN A NEW LIGHT AND BRANTIGAN'S PROPOSAL BEGAN TO MAKE SENSE SO 15 MONTHS AGO HE AND HIS LUNG TRANSPLANT TEAM BEGAN OFFERING THE SURGERY TO A FEW EMPHYSEMA PATIENTS WHO WERE DISABLED BUT WERE TOO OLD FOR LUNG TRANSPLANTS FOLLOWING THEIR INITIAL SUCCESS THE TEAM BEGAN OFFERING THE SURGERY TO SOME PATIENTS WHO WERE ELIGIBLE FOR LUNG TRANSPLANTS PATIENTS WHO CONTINUED TO SMOKE HOWEVER WEREN'T ACCEPTED FOR SURGERY ABOUT 20 TO 30 OF BOTH LUNGS USUALLY THE DISEASED PATCHES AT THE TOP OF THE LUNGS IS REMOVED THE EDGES OF THE LUNG ARE THEN STAPLED BACK TOGETHER AT FIRST HE SAID AIR TENDED TO LEAK WHERE THE STAPLES WERE EMPLACED BUT THE SURGEONS BEGAN INSERTING THE STAPLES THROUGH A STRIP OF BOVINE TISSUE THAT SEALS THE STAPLE HOLES 9404270194 940427 US SHOE SEES PROFIT TOPPING ESTIMATES FOR FISCAL 1ST QUARTER CINCINNATI US SHOE CORP'S FISCAL FIRSTQUARTER EARNINGS WILL BE TWICE ANALYSTS' FORECASTS PRESIDENT AND CHIEF EXECUTIVE OFFICER BANNUS B HUDSON SAID ANALYSTS ESTIMATE THE RETAILER OF WOMEN'S APPAREL FOOTWEAR AND EYEWEAR WILL EARN 10 CENTS TO 12 CENTS A SHARE BUT MR HUDSON SAID NET INCOME FOR THE PERIOD ENDING SATURDAY WILL BE MORE THAN 20 CENTS A SHARE OUR PERFORMANCE HAS IMPROVED VS EXPECTATIONS MR HUDSON SAID US SHOE WILL REPORT RESULTS IN MAY IN THE YEAREARLIER QUARTER THE COMPANY HAD A LOSS OF 96 MILLION OR 21 CENTS A SHARE ITS WOMEN'S APPAREL AND FOOTWEAR UNITS WERE PLAGUED A YEAR EARLIER BY WHAT ANALYSTS SAW AS POOR MARKETING CONCEPTS WEAK MERCHANDISE AND OPERATING WASTE BUT MR HUDSON SAID MANAGERS BROUGHT IN DURING AN OVERHAUL LAST YEAR ARE TURNING THE COMPANY AROUND THE WOMEN'S APPAREL UNIT IS TO HAVE A LOSS IN THE QUARTER BUT SHOW SUBSTANTIAL IMPROVEMENT FROM A YEAR EARLIER AND THE UNIT'S CASUAL CORNER RETAIL CHAIN HAS HAD SOLID SALES FOR SEVERAL MONTHS WHILE THE COMPANY'S PETITE SOPHISTICATES APPAREL CHAIN IS PERFORMING WELL MR HUDSON SAID THIS IS A SHOWME YEAR FOR AUGUST MAX WOMAN AN APPAREL CHAIN FOR WOMEN SIZE 14 AND LARGER AND CAPEZIO APPAREL HANDBAGS AND FOOTWEAR STORES I PERSONALLY EXPECT TO MAKE BOTH SOLID PERFORMERS HE SAID OF THE UNITS BUT IF WE CAN'T WE WON'T HANG ON TO THEM THE COMPANY'S FOOTWEAR UNIT HAS CUT OPERATING COSTS TO IMPROVE GROSS MARGINS AND WILL TURN A PROFIT THIS QUARTER HE SAID AND LENSCRAFTERS EYEWEAR STORES EXPECT RECORD EARNINGS 9404270193 940427 ECONOMY JOB COSTS ROSE AT SLOWER RATE IN FIRST QUARTER LABOR DEPARTMENT'S INDEX OF WAGES AND BENEFITS COULD BE A POSITIVE SIGN BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE RISE IN BUSINESSES' EMPLOYMENT COSTS SLOWED DURING THE FIRST QUARTER SUGGESTING RENEWED ECONOMIC STRENGTH HASN'T INCREASED WAGE PRESSURES THE LABOR DEPARTMENT SAID ITS EMPLOYMENT COST INDEX THE BROADEST MEASURE OF WAGE AND BENEFIT COSTS INCREASED 07 IN THE FIRST QUARTER FOLLOWING A 08 RISE IN THE LAST QUARTER OF 1993 IN THE 12 MONTHS ENDED IN MARCH EMPLOYMENT COSTS WERE UP ONLY 32 COMPARED WITH 35 IN THE YEAR ENDED IN DECEMBER THAT SHOULD BE A POSITIVE SIGN FOR THE FINANCIAL MARKETS WHICH HAVE BEEN UNEASY ABOUT THE PROSPECT THAT RISING INFLATION WOULD BE THE PARTNER OF A GROWING ECONOMY THE LATEST FIGURES SUGGEST THAT LABOR COSTS WHICH MAKE UP ABOUT TWOTHIRDS OF WHAT CONSUMERS PAY FOR GOODS AND SERVICES SHOULDN'T BE A MAJOR CONCERN FOR US EMPLOYERS THIS YEAR ALSO YESTERDAY THE CONFERENCE BOARD SAID CONSUMER CONFIDENCE CONTINUED TO CLIMB IN APRIL ITS INDEX OF CONSUMER SENTIMENT JUMPED TO 917 ITS HIGHEST LEVEL IN THREE YEARS FROM 867 LAST MONTH AMERICANS WERE MORE UPBEAT ABOUT BUSINESS CONDITIONS AND THEIR JOB SITUATIONS ANALYSTS SAY SEVERAL FACTORS ARE HELPING TO KEEP LABOR COSTS IN CHECK DESPITE A QUICKENING ECONOMY INTERNATIONAL COMPETITION AND THE CONTINUED EMPHASIS ON DOWNSIZING ARE THE MAIN REASON LABOR COSTS ARE NOT GOING UP THAT MUCH SAYS JOEL POPKIN PRESIDENT OF JOEL POPKIN & CO HERE IRWIN KELLNER CHIEF ECONOMIST OF CHEMICAL BANKING CORP IN NEW YORK SAYS LABOR UNIONS ARE LESS ABLE TO NEGOTIATE BIG PAY AND BENEFIT INCREASES MANY PUBLIC AND PRIVATE ECONOMISTS HAVE FRETTED THAT AS THE ECONOMY GETS CLOSER TO A 60 UNEMPLOYMENT RATE THE FIGURE WAS 65 IN MARCH IT WILL BECOME MORE DIFFICULT TO FIND QUALIFIED JOB APPLICANTS AND LABOR COSTS WILL SHOOT UP BUT TO SOME ECONOMISTS THE QUEST FOR PRODUCTIVITY GAINS AND OTHER FACTORS IMPLY THAT THE ECONOMY HAS LESS OF AN INFLATIONARY BIAS THAN IN OTHER PERIODS IF PRODUCTIVITY GOES UP WAGES CAN GO UP WITHOUT CAUSING INFLATION IT IS IMPORTANT TO NOTE REGIONAL DIFFERENCES IN COMPENSATION COSTS HOWEVER IN THE WEST FOR INSTANCE THE INCREASES IN LABOR COSTS HAVE BEEN LESS THAN IN THE REST OF THE COUNTRY REFLECTING THE PROTRACTED WEAKNESS IN THE CALIFORNIA ECONOMY COMPENSATION COSTS INCREASED 28 ON THE WEST COAST FOR THE YEAR ENDED IN MARCH COMPARED WITH 36 IN THE REST OF THE US ACROSS THE COUNTRY A SLOWDOWN IN THE RISE OF BENEFIT COSTS IS DOING THE MOST TO KEEP EMPLOYMENT EXPENSES UNDER CONTROL FOR THE YEAR ENDED IN MARCH THE RISE IN BENEFIT COSTS SLOWED TO 44 FROM 56 THE YEAR BEFORE THE TREND WAS FAIRLY WIDESPREAD BUT OCCURRED IN THE MANUFACTURING SECTOR IN PARTICULAR THE INCREASE IN WAGES AND SALARY COSTS ON THE OTHER HAND HAS HOVERED AROUND 30 IN MOST INDUSTRIES FOR THE PAST YEAR SEPARATELY THE COMMERCE DEPARTMENT SAID ITS REPORT ON MARCH ORDERS FOR DURABLE GOODS WILL BE DELAYED UNTIL TOMORROW BECAUSE OF TODAY'S DAY OF MOURNING FOR RICHARD NIXON ON MONDAY THE DEPARTMENT SAID IT PLANNED TO RELEASE THE REPORT ON SCHEDULE TODAY 9404270192 940427 COMMODITIES LIVESTOCKFUTURES PRICES PLUNGE AS SLAUGHTER OF HOGS INCREASES DESPITE US PROJECTED DECLINE BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO LIVESTOCKFUTURES PRICES PLUNGED AS HOG SLAUGHTER DEFIED GOVERNMENT PROJECTIONS BY CONTINUING AT A RAPID PACE AT THE CHICAGO MERCANTILE EXCHANGE HOGS FOR JUNE DELIVERY FELL 142 CENTS TO 5102 CENTS A POUND THE MAY PORKBELLY FUTURES CONTRACT PRICE WAS DOWN 187 CENTS TO 5025 CENTS A POUND AND THE PRICE OF JUNE CATTLE SLIPPED 95 CENT TO 7107 CENTS A POUND ANALYSTS SAID TRADERS HAVE LONG ANTICIPATED A DOWNTURN IN HOG SLAUGHTER BECAUSE OF GOVERNMENT PROJECTIONS THAT PORK PRODUCTION WOULD DECREASE IN ITS MARCH 25 HOGSANDPIGS REPORT THE US AGRICULTURE DEPARTMENT FORECAST A 4 DECLINE IN THE SECOND QUARTER OF THE YEAR FROM LAST YEAR'S HOGSLAUGHTER FIGURES SO FAR HOWEVER HOG SLAUGHTER IS CONTINUING AT LAST YEAR'S PACE SAID CHARLES LEVITT SENIOR MEAT ANALYST FOR ALARON TRADING CORP WE CAME INTO THIS WEEK EXPECTING THAT SLAUGHTER WOULD HAVE TO BE MUCH LOWER ON MONDAY AND TUESDAY AND INSTEAD IT'S HIGHER MR LEVITT SAID IT'S BEEN TOO MUCH FOR THE MARKET TO BEAR JOSEPH ARATA LIVESTOCK ANALYST FOR MERRILL LYNCH SAID INITIAL PRESSURE ON FUTURES PRICES YESTERDAY CAME FROM THE CASH MARKET FOR HOGS AFTER PRICES DECLINED THERE SELLING ON THE MERC'S HOGFUTURES MARKET TRIGGERED STOPS OR PREARRANGED ORDERS TO SELL FUTURES CONTRACTS WHICH ACCELERATED THE DOWNWARD MOVEMENT OF FUTURES PRICES HOG SLAUGHTER LAST WEEK WAS 18 MILLION HEAD LOWER THAN THE SAME WEEK LAST YEAR WHICH HAD LED MANY TRADERS TO BELIEVE THAT THE USDA'S LONGPREDICTED DECLINE WAS BEGINNING SO FAR THIS WEEK HOWEVER 667000 HOGS HAVE BEEN KILLED COMPARED WITH 661000 DURING THE SAME DAYS LAST YEAR SLAUGHTER OF CATTLE CHICKEN AND TURKEY IS UP LATELY AS WELL ALSO PUSHING PRICES DOWN MR LEVITT SAID WAS A MONTHLY COLDSTORAGE REPORT RELEASED FRIDAY THAT SHOWED 29 MORE BEEF AND PORK IN STORAGE THAN THERE WAS A YEAR AGO THAT'S A HUGE INCREASE HE SAID CATTLEFUTURES PRICES FELL AS BEARISH HOG TRADERS MOVED TO THE MERC'S CATTLE PIT AND BEGAN TO SELL THERE AS WELL ANALYSTS SAID CATTLE PRODUCERS HAVE BEEN COUNTING ON A DECLINING SUPPLY OF HOGS TO REDUCE COMPETITION FOR THE NATION'S LIMITED REDMEAT MARKET IF HOG SLAUGHTER CONTINUES AT ITS PRESENT LEVELS IT IS LIKELY TO CONTINUE TO EXERT DOWNWARD PRESSURE ON THE MERC'S ENTIRE MEATFUTURES COMPLEX ANALYSTS SAID IN OTHER COMMODITY MARKETS YESTERDAY ENERGY PETROLEUMFUTURES PRICES FELL AS MARKET PARTICIPANTS ENGAGED IN A ROUND OF PROFITTAKING FOLLOWING SEVERAL SESSIONS OF GAINS CRUDE OIL FOR JUNE DELIVERY LOST 33 CENTS A BARREL TO CLOSE AT 1691 IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE THAT SLIDE CAME AFTER JUNE CRUDE GAINED MORE THAN 1 A BARREL OVER THE PAST FOUR SESSIONS DUE PRIMARILY TO PERCEPTIONS OF TIGHT SUPPLIES TRADERS ALSO SEEMED TO WANT TO SELL AHEAD OF THE WEEKLY REPORT DUE OUT LATE YESTERDAY FROM THE AMERICAN PETROLEUM INSTITUTE AND BEFORE TODAY'S TRADING HOLIDAY IN OBSERVANCE OF THE DEATH OF FORMER US PRESIDENT RICHARD NIXON PETROLEUM PRODUCTS WERE LOWER AS WELL THE JUNE NATURALGAS FUTURES CONTRACT FELL 49 CENTS TO 2103 PER MILLION BRITISH THERMAL UNITS ROUGHLY EQUIVALENT TO ONE THOUSAND CUBIC FEET WEATHER IN THE NORTHEASTERN AND MIDWESTERN US WAS TOO WARM FOR SIGNIFICANT HEATING AND TOO COOL TO SPUR DEMAND FOR AIR CONDITIONING GRAINS & SOYBEANS SOYBEANOILFUTURES PRICES ROSE IN RESPONSE TO A GENERALLY BULLISH CLIMATE IN WORLD VEGETABLEOIL MARKETS AT THE CHICAGO BOARD OF TRADE SOYBEAN OIL FOR MAY DELIVERY ROSE 17 CENT TO 2851 CENTS A POUND INDIA'S STATE TRADING COMPANY IS EXPECTED TODAY TO BUY 40000 TO 60000 METRIC TONS OF PALM OIL THIS ANTICIPATED DEMAND PRESSURED VEGETABLEOIL PRICES HIGHER IN MALAYSIA SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO AND SOYBEANOIL PRICES AT THE CBOT ALSO MOVED HIGHER ON THE NEWS 9404270191 940427 TECHNOLOGY & HEALTH US SURGICAL POSTS LOSS OF 79 MILLION FOR FIRST QUARTER BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NORWALK CONN US SURGICAL CORP AS EXPECTED REPORTED THAT IT SWUNG TO A FIRSTQUARTER LOSS FROM A PROFIT A YEAR EARLIER AND REITERATED THAT IT EXPECTS TO BE PROFITABLE FOR THE SECOND QUARTER AND THE YEAR THE SURGICALEQUIPMENT MAKER HURT BY A SLOWDOWN IN THE MARKET FOR ITS MINIMALLY INVASIVE SURGICAL GEAR AS WELL AS BY INTENSE COMPETITION HAD SIGNALED THAT IT EXPECTED ITS FIRST QUARTER TO BE ITS LAST BAD QUARTER THE COMPANY HAD A NET LOSS OF 79 MILLION OR 14 CENTS A SHARE VS A PROFIT OF 36 MILLION OR 61 CENTS A SHARE A YEAR EARLIER SALES IN KEEPING WITH COMPANY ESTIMATES FELL 31 TO 226 MILLION FROM 326 MILLION A SIGNIFICANT PORTION OF THE SALES DROP WAS THE RESULT OF A ONETIME SALES GAIN IN THE 1993 QUARTER AS A RESULT OF A CHANGE IN THE COMPANY'S DISTRIBUTION SYSTEM SECONDQUARTER SALES ARE EXPECTED TO IMPROVE FROM THE FIRST QUARTER'S US SURGICAL SAID THE COMPANY SAID ITS PRETAX LOSS OF 54 MILLION OCCURRED MAINLY BECAUSE OF OPERATIONS IN THE US MARKET BUT 25 MILLION IN TAXES PAID ON INCOME EARNED IN THE INTERNATIONAL MARKET INCLUDING PUERTO RICO RAISED THE OVERALL LOSS FIGURE INVENTORY WAS REDUCED 17 MILLION DURING THE QUARTER TO 195 MILLION WHICH IS BETTER THAN THE COMPANY'S YEAREND GOAL OF 200 MILLION US SURGICAL SAID THE COMPANY SAID IT HAD POSITIVE CASH FLOW FROM OPERATIONS IN THE FIRST QUARTER EXCLUDING FINANCING ACTIVITIES AND EXPECTS TO HAVE POSITIVE CASH FLOW FOR THE YEAR US SURGICAL ALSO EXPECTS ITS RECENT COSTCUTTING AND RESTRUCTURING PROGRAM TO REDUCE OPERATING AND FIXED MANUFACTURING COSTS BY ABOUT 150 MILLION A YEAR US SURGICAL ROSE 75 CENTS TO 17375 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY THE COMPANY'S RESULTS WERE RELEASED AFTER THE MARKETS CLOSED 9404270189 940427 INTERNATIONAL SOUTH AFRICAN ELECTIONS BOOST ECONOMY AND MARKETS BUT GAINS MAY FADE FAST BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL JOHANNESBURG RICHARD STUART DIRECTOR OF STOCKBROKERS MARTIN & CO WAS A BIT NERVOUS AS HE GREETED A VISITOR TO HIS OFFICE IN THE STOCK EXCHANGE YESTERDAY THEY SAY THERE'S GOING TO BE A BOMB HERE HE SAYS BUT INSTEAD OF A BOMB BLAST THE DAY BROUGHT A DIFFERENT KIND OF BOOM INDUSTRIAL SHARES ROSE 37 TO A RECORD CLOSE OF 6252 AND THE ALLSHARE INDEX SURGED 34 TO 5240 ONLY 10 POINTS SHY OF ITS RECORD HIGH THIS MIX OF FRETFULNESS AND CONFIDENCE SUMMED UP THE MOOD IN THE BUSINESS COMMUNITY AS SOUTH AFRICANS BEGAN VOTING YESTERDAY IN THE COUNTRY'S FIRST ALLRACE ELECTIONS THE NEW SOUTH AFRICA OFFERS EQUAL DOSES OF OPPORTUNITY AND RISK BUSINESSMEN SAY THE ENDING OF APARTHEID COULD SET THE STAGE FOR SOUTH AFRICA'S EMERGENCE AS A REGIONAL ECONOMIC POWERHOUSE AT THE SAME TIME A RANGE OF UNCERTAINTIES FROM FEAR OF POPULISM TO ACTS OF TERRORISM CLOUD THE FUTURE THE POTENTIAL IS THERE SAYS EUGENE NYATI AN ECONOMIST AND DIRECTOR OF THE CENTER FOR AFRICAN STUDIES BUT WHAT WE HAVE TO DO IS DELIVER OUR SIDE OF THE BARGAIN PURSUE MARKETFRIENDLY POLICIES AND BRING DOWN CRIME AND VIOLENCE NELSON MANDELA LIKELY TO BE ELECTED PRESIDENT OF A NATIONAL UNITY GOVERNMENT DOMINATED BY HIS PARTY THE AFRICAN NATIONAL CONGRESS VOWS TO DO BOTH HE WILL HAVE TO STRIKE A BALANCE BETWEEN MEETING HUGE EXPECTATIONS AND MAINTAINING FISCAL DISCIPLINE AS SOUTH AFRICA EMBARKS ON WHAT SALOMON BROTHERS RECENTLY TERMED POSSIBLY THE MOST SUBSTANTIAL REALIGNMENT OF POLITICAL MILITARY SOCIAL AND ECONOMIC POWER EVER COMPLETED AT A BARGAINING TABLE RATHER THAN ON A BATTLEFIELD MR MANDELA HAS SOME ASSETS ON HIS SIDE AFTER YEARS OF RECESSION WORSENED BY INTERNATIONAL SANCTIONS AND A LONG DROUGHT THE COUNTRY'S ECONOMY IS ON THE REBOUND GROSS DOMESTIC PRODUCT GREW BY 1 LAST YEAR AND INFLATION FELL TO 97 THE FIRST FIGURE UNDER 10 IN 20 YEARS THIS YEAR A PICKUP IN INVESTMENT IS LIKELY TO BOOST GROWTH TO ABOUT 3 WHILE INFLATION IS PROJECTED AT 8 MOREOVER YESTERDAY'S BULLISH MARKET PROVES MR MANDELA CAN COUNT ON A GROUNDSWELL OF GOODWILL AT HOME AND ABROAD DESPITE A SERIES OF BOMB BLASTS OVER THE PAST FEW DAYS THAT MARRED THE COUNTRY'S HISTORIC TRANSITION SPEAKING TO SOUTH AFRICAN EDITORS LAST WEEK PRESIDENT CLINTON SAID HE WOULD SOON ANNOUNCE A SUBSTANTIAL INCREASE IN US AID AND COMMERCE SECRETARY RON BROWN SAID YESTERDAY THAT A GROWING AND EQUITABLE SOUTH AFRICA OFFERS TREMENDOUS OPPORTUNITIES FOR AMERICAN COMPANIES ALREADY SOME US COMPANIES ARE BEATING A PATH HERE ATTRACTED BY A POTENTIAL CONSUMER MARKET OF 40 MILLION PEOPLE AND AN INFRASTRUCTURE THAT MAKES SOUTH AFRICA A GOOD BASE FOR REGIONAL TRADE REVERSING THE DISINVESTMENT TREND THAT LED 209 US COMPANIES TO SELL OR CLOSE THEIR SOUTH AFRICAN OPERATIONS BETWEEN 1985 AND 1990 AS PART OF AN ANTIAPARTHEID BOYCOTT SUCH MAJOR NAMES AS HONEYWELL INC INTERNATIONAL BUSINESS MACHINES CORP AND SARA LEE CORP HAVE REACQUIRED SOME OR ALL OF THE EQUITY OF THEIR SOUTH AFRICAN SUBSIDIARIES IN RECENT MONTHS THEY ARE AMONG 152 US COMPANIES WITH EMPLOYEES OR DIRECT INVESTMENT IN THE COUNTRY ANOTHER 442 US FIRMS HAVE LICENSING OR DISTRIBUTION AGREEMENTS HERE UP FROM 184 IN 1991 ACCORDING TO THE WASHINGTONBASED INVESTOR RESPONSIBILITY RESEARCH CENTER FEW OF THESE INVESTMENTS ARE CREATING NEW JOBS HERE HOWEVER AND DENISE BUCKLE MANAGER OF THE AMERICAN CHAMBER OF COMMERCE IN SOUTHERN AFRICA SAYS FEW COMPANIES WILL COMMIT THEMSELVES TO BUILDING NEW PLANTS UNTIL THERE'S MORE STABILITY MR MANDELA HAS MADE JOB CREATION THE CENTERPIECE OF HIS 11 BILLION FIVEYEAR RECONSTRUCTION AND DEVELOPMENT PLAN WHICH PROMISES TO BUILD ONE MILLION HOMES ELECTRIFY 25 MILLION NEW HOUSES AND PROVIDE FREE EDUCATION FOR ALL THE PLAN HAS RAISED FEARS AMONG SOME ECONOMISTS THAT THE NEW GOVERNMENT WILL RUN BIG DEFICITS OR INCUR BIG DEBTS TO MEET ITS PROMISES I HAVE VERY SERIOUS DOUBTS ABOUT THE ATTAINABILITY OF DELIVERING WHAT THE POPULACE OUT THERE WANTS AND STILL MAINTAINING THE TARGET OF KEEPING FISCAL DEFICITS AT 6 OF GDP SAYS DESMOND OSBORN CHIEF ECONOMIST OF NEDBANK BY CONTRAST ANC ECONOMIST TITO MBOWENI SAYS THE PROGRAM CAN BE FUNDED LARGELY THROUGH CUTS IN PUBLIC EXPENDITURE AND A POSSIBLE LUXURY TAX THE KEY ISSUE ISN'T THROWING MORE MONEY AT THE PROBLEM BUT MAKING SPENDING EFFICIENT HE SAYS BUSINESSMEN TAKE COMFORT IN THIS SORT OF STATEMENT WHICH THEY SAY ATTESTS TO THE MATURING OF THE ANC'S THINKING THEY'RE FAR MORE INDUSTRYFRIENDLY SAYS MICHAEL SPICER A TOP EXECUTIVE AT ANGLO AMERICAN CORP THE HUGE CONGLOMERATE BUSINESSMEN ARE ALSO PLEASED THAT THE GOVERNMENT'S PROGRAM IS LIKELY TO BOOST GROWTH OVER THE NEXT COUPLE OF YEARS WHETHER THIS GROWTH IS SUSTAINABLE WILL DEPEND ON HOW SOUND THE GOVERNMENT'S FISCAL POLICIES ARE AND HOW COMPETITIVE THE SOUTH AFRICAN ECONOMY CAN BECOME THERE'S GOING TO BE A HUGE EFFORT TO GET THIS PLACE GOING AND DURING THAT TIME THIS PLACE IS GOING TO FLY SAYS MR STUART BUT THE JURY IS STILL OUT AS TO WHAT WILL HAPPEN AFTER THIS POSTAPARTHEID BOOM 9404270188 940427 INTERNATIONAL SPAIN'S TOURISM EARNINGS RISE MADRID SPAIN'S EARNINGS FROM TOURISM ROSE 7 IN THE FIRST TWO MONTHS OF 1994 TO 3204 BILLION PESETAS 234 BILLION FROM 2995 BILLION PESETAS IN THE YEAREARLIER PERIOD EARNINGS FROM TOURISM IN FEBRUARY ALONE GREW 8 TO 154 BILLION PESETAS FROM FEBRUARY 1993 THE INDUSTRY TRADE AND TOURISM MINISTRY SAID TOURISM ACCOUNTS FOR MORE THAN 8 OF SPAIN'S GROSS DOMESTIC PRODUCT 9404270186 940427 WHO'S NEWS HEAD OF TORONTO EXCHANGE TORONTO THE TORONTO STOCK EXCHANGE SAID ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER PEARCE BUNTING WILL RETIRE AT THE END OF THE YEAR MR BUNTING 64 YEARS OLD HAS BEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER SINCE 1977 THE EXCHANGE SAID IT FORMED A COMMITTEE TO FIND A SUCCESSOR TO MR BUNTING A SPOKESMAN FOR THE EXCHANGE SAID MR BUNTING WAS INSTRUMENTAL IN THE DEVELOPMENT OF THE WORLD'S FIRST FULLY AUTOMATED TRADING SYSTEM 9404270184 940427 TEXAS JOURNAL BULLETTRAIN GROUP AIMS FOR NEW TRACK BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL CAN TWO OF THE STATE'S TOP INSURANCE EXECUTIVES SAVE TEXAS' BULLET TRAIN THAT'S THE HOPE OF TEXAS TGV CORP THE CONSORTIUM STRUGGLING TO HOLD ON TO THE STATE'S RAIL FRANCHISE AGREEMENT PEOPLE FAMILIAR WITH THE SITUATION SAY THE COMPANY NOW IS TALKING UP RETIRED AIR FORCE BRIG GEN ROBERT MCDERMOTT FORMER CHAIRMAN OF SAN ANTONIO'S USAA AND BERNARD RAPOPORT CHAIRMAN AND CHIEF EXECUTIVE OF AMERICAN INCOME LIFE INSURANCE CO OF WACO AS THE SAVIORS OF THE BATTERED PROJECT MR MCDERMOTT AND MR RAPOPORT ARE BOTH LONGTIME SUPPORTERS OF THE HIGHSPEED RAIL CONCEPT AND HAVE STRONG POLITICAL TIES TO GOV ANN RICHARDS TEXAS ATTORNEY GENERAL DAN MORALES AND OTHER TEXAS DEMOCRATS THOSE CLOSE TO THE DEAL SAY MR MCDERMOTT AND MR RAPOPORT HAVE BEEN APPROACHED AS INDIVIDUAL INVESTORS AND NEITHER COMPANY WOULD BE INVOLVED THE TALKS HAVE CENTERED ON THE IDEA THAT THE TEXAS INVESTORS WOULD BECOME PART OF A NEW COMPANY THAT COULD NEGOTIATE A NEW FRANCHISE ACCORD WITH THE STATE BUT EVEN IF THEY WANT TO COME ABOARD IT'S UNCLEAR WHETHER THE TEXAS HIGH SPEED RAIL AUTHORITY THE STATE AGENCY SET UP TO OVERSEE THE PROJECT WOULD APPROVE THE MOVE OR COULD EVEN LEGALLY ALLOW A NEW DEAL MR RAPOPORT WHO ALSO SERVES AS CHAIRMAN OF THE THE UNIVERSITY OF TEXAS BOARD OF REGENTS CONFIRMS THAT HE HAS TALKED WITH TEXAS TGV CHAIRMAN GLENN BIGGS HE SAYS HE IS OPEN TO THE IDEA OF INVESTING IN THE PROJECT BUT HASN'T COMMITTED TO IT GLENN BIGGS IS A GOOD FRIEND OF MINE AND HE'S TALKING TO ME BUT I HAVEN'T SEEN ANY FIGURES TO INDICATE WHETHER I'D BE INTERESTED AS AN INVESTOR SAYS MR RAPOPORT 76 YEARS OLD MR MCDERMOTT 73 COULDN'T BE REACHED FOR COMMENT BUT IN THE PAST HE HAS SUPPORTED THE IDEA OF BRINGING HIGHSPEED RAIL TO TEXAS HE IS CREDITED WITH TRANSFORMING USAA FROM A RELATIVELY SMALL AUTOINSURANCE COMPANY TO ONE OF THE NATION'S LARGEST GENERAL INSURERS WITH INVESTMENTS THAT INCLUDE STAKES IN THE FIESTA TEXAS THEME PARK AND THE SAN ANTONIO SPURS BASKETBALL TEAM TEXAS TGV OFFICIALS WHO FOR WEEKS HAVE SAID THEY WERE INVOLVED IN TALKS WITH PROMINENT TEXANS ABOUT THE PROJECT WOULDN'T SAY WHETHER THOSE TALKS HAVE INCLUDED MR MCDERMOTT OR MR RAPOPORT WE'VE TALKED TO A NUMBER OF PEOPLE THAT MIGHT SOMEDAY WANT TO BE INVESTED SAYS TGV PRESIDENT DAVID RECE MOST MEMBERS OF THE HIGH SPEED RAIL AUTHORITY HAVE SAID A SUCCESSFUL RAIL PROJECT NEEDS TO INVOLVE TEXANS WHO HAVE A HOMETOWN STAKE IN IT TEXAS RAILROAD COMMISSIONER BARRY WILLIAMSON WHO ALSO SITS ON THE HIGHSPEED RAIL BOARD SAYS HE HAS NO FIRSTHAND KNOWLEDGE THAT MR MCDERMOTT OR MR RAPOPORT ARE INTERESTED IN THE DEAL BUT THAT WOULD GET MY ATTENTION IF THEY WERE BUT OTHER BOARD MEMBERS QUESTION WHETHER THE TALK OF THEIR POSSIBLE INVOLVEMENT IS SIMPLY A LAST GASP ON THE PART OF TEXAS TGV I'VE BEEN HEARING THAT TALK SINCE DECEMBER AND I HAVEN'T SEEN ANYTHING SAYS RAILBOARD MEMBER DAVID MCCALL A PLANO LAWYER THE HIGH SPEED RAIL AUTHORITY IS EXPECTED TO VOTE TODAY TO BEGIN THE FORMAL ADMINISTRATIVE PROCESS FOR CANCELING THE FRANCHISE WITH TEXAS TGV THE AUTHORITY SAYS THE COMPANY DEFAULTED ON ITS FRANCHISE AGREEMENT BECAUSE IT DIDN'T LINE UP COMMITMENTS FOR 170 MILLION IN EQUITY FINANCING BY A DECEMBER DEADLINE THE COMPANY CONTENDS THAT STATE ACTIONS DELAYED THE FUND RAISING AND THAT IT HASN'T VIOLATED THE AGREEMENT IN FACT TEXAS TGV HAS CONTINUED TO MEET OTHER OBLIGATIONS OF THE FRANCHISE AS IF NOTHING HAS GONE WRONG INCLUDING A 100000 PAYMENT TO THE STATE IN JANUARY THE COMPANY HAS AT LEAST A GLIMMER OF HOPE MEMBERS OF THE HIGHSPEED RAIL BOARD WHO JUST FOUR MONTHS AGO SPOKE HARSHLY OF THE COMPANY'S FAILURE TO MEET THE 170 MILLION FUNDING DEADLINE NOW REFER TO THE ALLEGED VIOLATION OF THE FRANCHISE PACT THE PROCESS OF CANCELLING THE FRANCHISE IS LENGTHY AND ALLOWS FOR A SETTLEMENT WITHOUT REVOKING THE DEAL INDEED CRITICS OF HIGHSPEED RAIL HAVE COMPLAINED ABOUT HOW LONG THE STATE HAS TAKEN TO MEET ON THE ISSUE SAYING THE FOURMONTH DELAY SMACKS OF BACKROOM DEALINGS ENOUGH IS ENOUGH WROTE MR MORALES THE TEXAS ATTORNEY GENERAL IN A MARCH LETTER TO HERSHEL PAYNE CHAIRMAN OF THE HIGH SPEED RAIL AUTHORITY IT IS NECESSARY TO REMOVE THE CLOUD OF UNCERTAINTY SURROUNDING THIS PROJECT GOV RICHARDS ALSO HAS CALLED FOR THE BOARD TO REVOKE THE FRANCHISE A SOURCE CLOSE TO THE DEAL SAYS TGV OFFICIALS HOPE TO SAVE THE PROJECT BY TRANSFERRING AT LEAST SOME OF THE OWNERSHIP TO MR RAPOPORT AND MR MCDERMOTT SUCH A DEAL SUBJECT TO APPROVAL BY THE STATE RAIL BOARD WOULD CREATE A NEW ENTITY THAT TGV OFFICIALS HOPE COULD NEGOTIATE A NEW MORE FAVORABLE FRANCHISE PACT WITH THE STATE THE NEW ENTITY WOULD ALSO BE WORKING WITH A SCALEDBACK RAIL PLAN POSSIBLY JUST AN AUSTINSAN ANTONIO ROUTE TEXAS TGV OFFICIALS LAST MONTH MET WITH THE LOWER COLORADO RIVER AUTHORITY WHICH COULD SUPPLY ELECTRICITY FOR THE ROUTE LCRA GENERAL MANAGER MARK ROSE SAYS IT IS PREMATURE FOR THE AGENCY TO BECOME INVOLVED UNTIL AREA GOVERNMENT AND CIVIC LEADERS REACH A CONSENSUS ABOUT THE PROJECT TEXAS TGV'S UNDERLYING PROBLEM IS THAT IT HAS LITTLE CREDIBILITY WITH STATE OFFICIALS BECAUSE IT HAS FAILED TO KEEP MANY PAST PROMISES IN ADDITION IT ISN'T CLEAR WHETHER THE COMPANY OR THE STATE CAN LEGALLY CHANGE THE OWNERSHIP RENEGOTIATE THE FRANCHISE AND CHANGE THE ROUTE AND POSSIBLY THE TECHNOLOGY WITHOUT OPENING THE PROCESS UP FOR BIDS AGAIN ANOTHER BIG OBSTACLE IS THAT TEXAS TGV HAS NOW ADMITTED IT CAN'T BUILD THE PROJECT WITHOUT PUBLIC FUNDS STATE LAW PROHIBITS THE USE OF STATE DOLLARS FOR THE PROJECT AND ANY CHANGE WOULD REQUIRE APPROVAL FROM THE TEXAS LEGISLATURE WHICH WON'T MEET UNTIL NEXT YEAR IF YOU GET THE POLITICAL LEADERSHIP TO BE INVOLVED AND THEY CONSIDER THIS TO BE IMPORTANT THAT LEGISLATION CAN BE ADDRESSED SAYS TGV'S MR RECE 9404270183 940427 BUSINESS BRIEF WALT DISNEY CO NET INCOME GREW 16 IN 2ND PERIOD ON 12 RISE IN REVENUE BURBANK CALIF DESPITE A DESULTORY PERFORMANCE BY ITS THEME PARKS WALT DISNEY CO REPORTED SECONDQUARTER NET INCOME INCREASED 16 TO 2484 MILLION OR 45 CENTS A SHARE FROM 2149 MILLION OR 39 CENTS A SHARE IN THE YEAREARLIER PERIOD ENDED MARCH 31 REVENUE CLIMBED 12 TO 228 BILLION FROM 203 BILLION IN THE YEARAGO QUARTER OPERATING PROFIT INCREASED 2 TO 410 MILLION FROM 4014 MILLION A YEAR AGO THE RESULTS SLIGHTLY EXCEEDED ANALYSTS' EXPECTATIONS AND DISNEY SHARES CLOSED AT 4350 UP 1125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY THERE ARE NO GREAT SURPRISES HERE SAID ANALYST RAYMOND KATZ OF LEHMAN BROTHERS INC WHO MAINTAINS HIS BUY RECOMMENDATION ON THE STOCK WITH A COMPANY THIS SIZE A FEW CENTS IN EITHER DIRECTION DOESN'T MAKE MUCH DIFFERENCE THE FINANCIAL WOES OF EURO DISNEY DIDN'T AFFECT THESE QUARTERLY RESULTS AS THEY HAD IN THE YEARAGO QUARTER BECAUSE THE COMPANY ALREADY HAD TAKEN A 350 MILLION RESERVE LAST FALL THAT COVERED ITS COMMITMENTS BUT WHEN THE COMPANY FINALIZES A SETTLEMENT PLAN WITH LENDERS UNDER WHICH DISNEY WILL INJECT 490 MILLION IN NEW EQUITY INTO THE PARK DEFER A NUMBER OF FEES AND SUPPLY NEW CREDIT DISNEY AGAIN WILL BEGIN BOOKING EURO DISNEY LOSSES MR KATZ ESTIMATES THESE AT ABOUT 85 MILLION FOR THE BALANCE OF THE YEAR OPERATING PROFIT IN THE COMPANY'S THEME PARK UNIT FELL 3 TO 1523 MILLION FROM 1577 MILLION A CONTINUED DECLINE IN OVERSEAS VISITORS AFFECTED WALT DISNEY WORLD IN FLORIDA THE JANUARY EARTHQUAKE IN SOUTHERN CALIFORNIA HURT ATTENDANCE AT DISNEYLAND THE COMPANY SAID EVEN THOUGH DISNEY'S RECENT LINEUP OF THEATRICAL MOVIES HAS UNDERPERFORMED INTERNATIONAL BOX OFFICE AND VIDEO SALES MADE UP FOR IT SENDING OPERATING PROFIT UP 2 TO 160 MILLION FROM 1565 MILLION CONSUMER PRODUCTS OPERATING PROFIT INCREASED 12 TO 977 MILLION FROM 873 MILLION DRIVEN BY STRONG INTERNATIONAL LICENSING AND PUBLISHING ABROAD THE COMPANY SAID FOR THE SIXMONTH PERIOD REVENUE INCREASED 13 TO 5 BILLION FROM 442 BILLION IN THE COMPARABLE YEAREARLIER PERIOD NET INCOME ROSE TO 617 MILLION OR 113 A SHARE UP 26 FROM 4899 MILLION OR 90 CENTS A SHARE NOT INCLUDING 68 CENTS A SHARE IN ACCOUNTING CHANGES REPORTED IN THE YEAREARLIER PERIOD 9404270182 940427 SUPREME COURT RULES JOBBIAS LAW SHOULDN'T BE APPLIED RETROACTIVELY BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A BIG VICTORY FOR EMPLOYERS THE SUPREME COURT SAID A 1991 JOBDISCRIMINATION LAW SHOULDN'T BE APPLIED RETROACTIVELY TO BIAS THAT ALLEGEDLY TOOK PLACE BEFORE THE STATUTE WAS ENACTED THE DECISION CONTAINED IN A PAIR OF 81 RULINGS WILL BLOCK EMPLOYEES FROM PROCEEDING WITH THOUSANDS OF PENDING LAWSUITS SEEKING MILLIONS OF DOLLARS IN DAMAGES FROM EMPLOYERS THE CONTROVERSIAL CIVILRIGHTS LAW WAS DESIGNED TO REVERSE OR MODIFY A SERIES OF 1989 DECISIONS BY THE SUPREME COURT THAT MADE IT MORE DIFFICULT FOR EMPLOYEES TO FILE AND WIN JOBDISCRIMINATION SUITS THE LAW ALSO CREATED NEW RIGHTS SUCH AS ALLOWING WOMEN TO SEEK DAMAGES THAT PREVIOUSLY HADN'T BEEN ALLOWED IN SEXBIAS CASES THE HIGH COURT MAJORITY STRESSED THAT CONGRESS FAILED TO STATE CLEARLY WHETHER IT INTENDED THE 1991 ACT TO APPLY TO EARLIER CONDUCT WITHOUT SUCH A STATEMENT IT GENERALLY ISN'T FAIR TO APPLY STANDARDS THAT WEREN'T THE LAW WHEN THE CONDUCT OCCURRED THE MAJORITY SAID IN FACT CONGRESS WAS ONLY ABLE TO PASS THE 1991 ACT AND GET PRESIDENT BUSH TO SIGN IT BY LEAVING THE ISSUE OF RETROACTIVE APPLICATION AMBIGUOUS THE COURT SAID YESTERDAY IT SHOULDN'T INFER A MANDATE THAT CONGRESS LEFT OUT AS THE RESULT OF A POLITICAL COMPROMISE WITHIN BROAD LIMITS SET BY THE CONSTITUTION LAWMAKERS CAN ALWAYS GO BACK AND ADD A RETROACTIVITY PROVISION IF THEY WANT TO THE COURT OBSERVED SOME CIVILRIGHTS ACTIVISTS SAID YESTERDAY THAT THEY WOULD LOBBY FOR JUST THAT GIVEN THE LONG ODDS OF PASSING SUCH AN AMENDMENT THIS YEAR THOUGH THE HIGH COURT'S ACTION LEFT LIBERALS GLUM CHARLES STEVEN RALSTON OF THE NAACP LEGAL DEFENSE AND EDUCATIONAL FUND WHICH REPRESENTED TWO BLACK WORKERS BEFORE THE HIGH COURT ACKNOWLEDGED THAT WHILE THE RULING DEALT SPECIFICALLY WITH ONLY TWO PROVISIONS IN THE COMPLICATED 1991 ACT THE MAJORITY'S REASONING APPEARED TO COVER MOST OF THE OTHER SIGNIFICANT PARTS OF THE LAW AS WELL AGREEING WITH THAT ASSESSMENT ATTORNEY GLEN NAGER WHO ARGUED BEFORE THE COURT ON BEHALF OF EMPLOYERS ESTIMATED THAT AS MANY AS 8000 CASES COULD BE AFFECTED IN ONE OF THE CASES BEFORE THE HIGH COURT A TEXAS WOMAN HAD SUED HER FORMER EMPLOYER IN 1989 ALLEGING THAT SHE HAD BEEN HARASSED VERBALLY AND SEXUALLY BY ANOTHER EMPLOYEE A NEW ORLEANS FEDERAL APPEALS COURT SAID THE WOMAN BARBARA LANDGRAF WASN'T COVERED BY A PROVISION OF THE 1991 ACT THAT EXTENDED TO VICTIMS OF INTENTIONAL SEXDISCRIMINATION THE RIGHT TO COLLECT COMPENSATORY AND PUNITIVE DAMAGES PREVIOUSLY WOMEN PLAINTIFFS IN SUCH SUITS WERE ELIGIBLE FOR BACK PAY ONLY THE SAME PROVISION OF THE 1991 ACT ALLOWED EITHER SIDE IN A CASE WHERE DAMAGES ARE SOUGHT TO REQUEST THAT THE DISPUTE BE HEARD BY A JURY RATHER THAN A JUDGE THE SUPREME COURT AFFIRMED THE NEW ORLEANS APPEALS COURT'S PROEMPLOYER RULING JUSTICE JOHN PAUL STEVENS BASED HIS OPINION FOR THE MAJORITY ON A LONGSTANDING JUDICIAL PRESUMPTION THAT IT IS UNFAIR TO IMPOSE NEW BURDENS ON INDIVIDUALS OR COMPANIES AFTER THE FACT REQUIRING CONGRESS TO BE CLEAR IF IT INTENDS A LAW TO APPLY RETROACTIVELY FORCES LAWMAKERS TO CONSIDER WHETHER THIS POTENTIAL UNFAIRNESS IS OUTWEIGHED BY THEIR LEGISLATIVE GOALS JUSTICE STEVENS REASONED SOME OF THE SUPREME COURT'S PRECEDENTS ON THE RETROACTIVITY QUESTION HAVE APPEARED TO CONTRADICT EACH OTHER BUT JUSTICE STEVENS FINESSED THIS PROBLEM BY EMPHASIZING THE VARYING FACTUAL CONTEXTS OF PAST DECISIONS JUSTICE ANTONIN SCALIA JOINED BY JUSTICES ANTHONY KENNEDY AND CLARENCE THOMAS FILED A SEPARATE CONCURRING OPINION OBJECTING TO THIS AND OTHER ASPECTS OF THE REASONING IN THE STEVENS OPINION THE OTHER CASE DECIDED BY THE HIGH COURT INVOLVED TWO BLACK MECHANICS FROM OHIO THEY HAD SUED THEIR FORMER EMPLOYER ROADWAY EXPRESS INC CLAIMING THEY HAD BEEN FIRED IN 1986 BECAUSE OF THEIR RACE THE MECHANICS ARGUED THAT THEY SHOULD BE PROTECTED RETROACTIVELY BY A PART OF THE 1991 ACT THE PROVISION REVERSED A 1989 SUPREME COURT DECISION THAT SAID A RECONSTRUCTIONERA ANTIBIAS LAW APPLIED ONLY TO HIRING AGREEMENTS NOT ONTHEJOB DISCRIMINATION OR FIRINGS A FEDERAL APPEALS COURT BASED IN CINCINNATI SAID THE MECHANICS COULDN'T INVOKE THE 1991 ACT AND THE SUPREME COURT AFFIRMED THAT RULING AGAIN WRITING FOR THE MAJORITY JUSTICE STEVENS REJECTED THE PLAINTIFFS' ARGUMENT THAT IT WAS APPROPRIATE TO APPLY THE 1991 ACT RETROACTIVELY BECAUSE IT MERELY RESTORED THE LAW TO WHAT IT HAD BEEN BEFORE THE SUPREME COURT'S 1989 DECISION HE SAID THE TEXT OF THE ACT DIDN'T ESTABLISH RESTORATION OF RIGHTS AS ITS PURPOSE AND THAT SUCH A PURPOSE DIDN'T NECESSARILY LEAD TO RETROACTIVE APPLICATION IN ANY CASE JUSTICE BLACKMUN WAS THE ONLY DISSENTER RIVERS VS ROADWAY EXPRESS INC 9404270181 940427 PHILLIPS'S PROFIT MORE THAN DOUBLED IN 1ST QUARTER WHILE CHEVRON'S FELL 23 BY PAULINE YOSHIHASHI AND ALLANNA SULLIVAN STAFF REPORTERS OF THE WALL STREET JOURNAL PHILLIPS PETROLEUM CO'S FIRSTQUARTER EARNINGS MORE THAN DOUBLED WHILE CHEVRON CORP'S PROFIT DECLINED 23 AMID SHARPLY LOWER OIL PRICES THAT AFFECTED RESULTS INDUSTRYWIDE PHILLIPS SAID ITS FIRSTQUARTER NET INCOME SURGED TO 127 MILLION OR 49 CENTS A SHARE FROM 61 MILLION OR 23 CENTS A SHARE A YEAR EARLIER REVENUE HOWEVER SLIPPED 65 TO 29 BILLION FROM 31 BILLION THE LATEST QUARTER'S EARNINGS INCLUDED A NET GAIN OF 18 MILLION RELATED TO A STOCK TRANSACTION WITHOUT SPECIAL ITEMS OPERATING PROFIT ROSE 91 TO 109 MILLION FROM 57 MILLION PHILLIPS SAID PHILLIPS'S RESULTS ARE ATYPICAL COMPARED WITH MOST OTHER LARGE OIL COMPANIES LOW OIL PRICES GENERALLY PRODUCED EARNINGS DECLINES FOR THE PERIOD STINGING MOST HARSHLY THOSE COMPANIES WITH LARGE EXPLORATION AND PRODUCTION BUSINESSES BUT IN PHILLIPS'S CASE THE IMPROVEMENT IN OUR DOWNSTREAM REFINING AND MARKETING OPERATIONS MORE THAN OFFSET SUBSTANTIALLY LOWER CRUDE OIL AND NATURAL GAS LIQUIDS PRICES SAID PHILLIPS CHAIRMAN CJ SILAS THE OIL COMPANY ESPECIALLY BENEFITED FROM AN UPTURN IN ITS CHEMICALS BUSINESS PHILLIPS BASED IN BARTLESVILLE OKLA HAS A LARGER CHEMICALS OPERATION THAN MOST OIL COMPANIES LAGGING PROFITABILITY IN THAT SECTOR OVER THE PAST FEW YEARS HELPED TO DEPRESS OVERALL RESULTS BUT QUARTERLY CHEMICAL PROFIT WAS SHARPLY HIGHER BECAUSE OF INCREASED SALES VOLUMES AND THE MORE PROFITABLE PRICING OF CERTAIN CHEMICAL PRODUCTS THE CHEMICALS BUSINESS ALSO BENEFITED FROM A GAIN RELATED TO REDUCTION IN OWNERSHIP OF A POLYETHYLENE PLANT IN SINGAPORE SEPARATELY CHEVRON REPORTED NET INCOME OF 388 MILLION OR 119 A SHARE DOWN FROM 501 MILLION OR 154 A SHARE A YEAR EARLIER THE LATEST QUARTER'S RESULTS INCLUDED SPECIAL CHARGES OF 36 MILLION INCLUDING 15 MILLION TO SETTLE A GAS CONTRACT ROYALTIES DISPUTE AND 21 MILLION FOR ENVIRONMENTAL ASSESSMENTS AND IMPROVEMENTS AT SERVICE STATIONS THE PRIORYEAR QUARTER INCLUDED 2 MILLION IN SPECIAL CHARGES EXCLUDING THE SPECIAL CHARGES EARNINGS DROPPED 16 FROM A YEAR EARLIER TO 424 MILLION THE SAN FRANCISCO COMPANY SAID REVENUE FELL 88 TO 83 BILLION FROM 91 BILLION OUR RESULTS WERE HURT BY LOW CRUDE OIL PRICES AND REFINERY DOWNTIME KENNETH DERR CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID ALTHOUGH INDUSTRY PRODUCT SALES MARGINS WERE STRONG OUR US DOWNSTREAM EARNINGS WERE RELATIVELY FLAT INTERNATIONAL OIL PRODUCTION AND NATURAL GAS PRICES INCREASED AND CHEVRON'S COSTCUTTING PROGRAM REDUCED ADMINISTRATIVE AND OPERATING COSTS TO 647 A BARREL FIVE CENTS A BARREL LESS THAN A YEAR EARLIER THE COMPANY ADDED THAT IT HOPES TO HAVE THE SALES OF ITS PHILADELPHIA AND PORT ARTHUR TEXAS REFINERIES COMPLETED BY YEAR END AS PART OF ITS DOMESTIC DOWNSTREAM RESTRUCTURING 9404270180 940427 DIVIDEND NEWS ARGONAUT GROUP INC ARGONAUT GROUP INC LOS ANGELES SAID IT RAISED ITS QUARTERLY DIVIDEND 16 TO 29 CENTS A COMMON SHARE FROM 25 CENTS A SHARE THE DIVIDEND WILL BE PAID MAY 24 TO STOCK OF RECORD MAY 10 A SPOKESMAN SAID THE INCREASE IS CONSISTENT WITH A RECENT PATTERN LAST APRIL THE INSURANCE CONCERN BOOSTED THE PERSHARE DIVIDEND TO 25 CENTS FROM 21 CENTS 9404270179 940427 USX'S FIRSTQUARTER PROFIT REVERSES 1993 LOSS MARATHON RESULTS IMPROVED BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL USX CORP HELPED BY A BIG GAIN AND IMPROVED OPERATING RESULTS AT ITS MARATHON UNIT EARNED 75 MILLION IN THE FIRST QUARTER COMPARED WITH A 45 MILLION LOSS A YEAR AGO BUT USX'S US STEEL GROUP POSTED A BIGGERTHANEXPECTED LOSS PARTLY BECAUSE OF HARSH WINTER WEATHER USX A PITTSBURGHBASED OIL STEEL AND NATURALGAS CONCERN SAID OVERALL SALES SLIPPED LESS THAN 1 TO 427 BILLION FROM 428 BILLION THE 1993 FIRST QUARTER INCLUDED A 92 MILLION ACCOUNTING CHARGE MARATHON FUELED USX'S PROFIT THE OIL COMPANY EARNED 110 MILLION OR 38 CENTS A SHARE UP FROM 8 MILLION OR TWO CENTS A SHARE IN 1993'S FIRST QUARTER MARATHON'S PROFIT WAS PROPELLED BY A 90 MILLION GAIN FROM AN INVENTORYMARKET VALUATION ADJUSTMENT AND THE SALE OF CERTAIN PRODUCTION ASSETS THE YEAREARLIER PERIOD INCLUDED A 9 MILLION CHARGE WHICH REFLECTED A CHARGE FROM TWO ACCOUNTING CHANGES AND A GAIN FROM AN INVENTORY MARKETVALUATION ADJUSTMENT EXCLUDING SPECIAL ITEMS MARATHON EARNED SEVEN CENTS A SHARE IN THE QUARTER UP FROM FOUR CENTS A YEAR AGO SAID ROBIN SHOEMAKER AN ANALYST WITH LEHMAN BROTHERS THE WEAK OIL PRICE WAS EXPECTED TO HOLD DOWN EARNINGS IN THE FIRST QUARTER AND IT DID SAID MR SHOEMAKER MARATHON'S SALES FELL 7 TO 275 BILLION FROM 295 BILLION MEANWHILE US STEEL WAS HAMMERED BY SEVERAL FACTORS INCLUDING SEVERE WINTER WEATHER THAT DISRUPTED OPERATIONS AND PAYMENTS TO WORKERS UNDER A NEW LABOR PACT THE UNIT REPORTED A LOSS OF 35 MILLION OR 56 CENTS A SHARE COMPARED WITH THE YEARAGO LOSS OF 59 MILLION OR 103 A SHARE THE LOWEST ESTIMATE AMONG ANALYSTS WAS A 25CENTASHARE LOSS THE YEAREARLIER QUARTER INCLUDED AN ACCOUNTING CHARGE OF 69 MILLION SALES CLIMBED ABOUT 14 TO 138 BILLION FROM 121 BILLION IN A STATEMENT CHARLES A CORRY USX'S CHAIRMAN CALLED US STEEL'S RESULTS DISAPPOINTING BUT NOTED THAT THE LOSS WASN'T REFLECTIVE OF CURRENT STRENGTH IN STEEL MARKETS OR OF US STEEL'S ABILITY TO BE A COMPETITIVE LEADER IN THOSE MARKETS HE ADDED THAT THE OUTLOOK IS BRIGHT IN OUR KEY MARKET SECTORS WHICH INCLUDE MANUFACTURERS OF CAPITAL GOODS AUTOMOBILES AND APPLIANCES AT USX'S DELHI NATURALGAS UNIT NET INCOME DROPPED 95 TO 400000 OR THREE CENTS A SHARE SALES CLIMBED 18 TO 1544 MILLION FROM 131 MILLION DELHI'S EARNINGS WERE PARTLY HURT BY HIGHER PRICES FOR NATURAL GAS IT USES TO PRODUCE NATURALGAS LIQUIDS SUCH AS PROPANE AND BUTANE AND LOWER PRICES FOR THOSE NATURALGAS LIQUIDS 9404270178 940427 BUY A BRAND NEW PUMPER TRUCK GET FREE MOVING BILLBOARD SPACE BY PATRICIA DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL THE VOLUNTEER FIREFIGHTERS IN PLEASANT HILLS PA HAVE SPARKED INTEREST IN ADVERTISING CIRCLES THE FIRE DEPARTMENT NEEDS A NEW PUMPER TRUCK SO IT HIRED A LOCAL AD FIRM TO FIND A COMPANY TO BUY IT ONE IN EXCHANGE FOR FOOTING THE 300000 TO 500000 BILL THE SPONSOR WILL GET TO SLAP ITS COMPANY COLORS CORPORATE LOGO OR ANY OTHER DESIGN ON THE TRUCK THE FIREFIGHTERS SAY THEY'LL EVEN APPEAR IN FULL UNIFORM WITH THE TRUCK AT FUNCTIONS TO HAND OUT PRODUCT SAMPLES TO BOOST THE SPONSORING COMPANY'S IMAGE THE AD AGENCY GRAMARK ADVERTISING IN PITTSBURGH HAS BEEN APPROACHING CORPORATIONS WITH A SLICK BROCHURE AND COMPUTERSCANNED MOCKUPS OF PAINTED TRUCKS WHILE IT WON'T DISCLOSE NAMES THE AGENCY CLAIMS TO BE TALKING WITH THREE MAJOR CORPORATIONS BUT SCOTT WAGNER PRESIDENT OF THE FIRE DEPARTMENT SAYS UNTIL SOMEBODY WRITES OUT A CHECK IT'S NOT DOING US ANY GOOD SOME OBSERVERS THINK CERTAIN COMPANIES ALCOHOL OR CIGARETTE MANUFACTURERS MIGHT BE INAPPROPRIATE SPONSORS FOR AN EMERGENCY VEHICLE BUT THE FINAL DECISION RESTS WITH THE VOLUNTEER DEPARTMENT'S GENERAL MEMBERSHIP AT THIS POINT ANYTHING GOES IF IT'S WILLING TO PURCHASE THIS TRUCK THE COMPANY CAN PAINT IT ANY WAY IT WANTS WITHIN REASON SAYS FIRE CHIEF DAN HAECK SOMETHING DEGRADING OR PORNOGRAPHIC WE WOULD DEFINITELY SAY NO' TO HE ADDS SCANTILY CLAD WOMEN FOR EXAMPLE MIGHT BE IN BAD TASTE ON A FIRE TRUCK HOWEVER THEY DID GO OVER WELL IN 1988 WHEN THE PLEASANT HILLS FIRE DEPARTMENT RAISED 91000 SELLING CALENDARS DEPICTING WOMEN WEARING LINGERIE OR EMERGENCY TAPE AT FIREFIGHTING SCENES WHEN IN FOLLOWING YEARS OTHER FIRE COMPANIES CAME OUT WITH COMPETITIVE VERSIONS PLEASANT HILLS TRIED ANOTHER APPROACH ITS 1993 CALENDAR HAD SHOTS OF LOCAL CHURCHES THE POLICE DEPARTMENT AND THE HIGHSCHOOL FOOTBALL TEAM THE DEPARTMENT LOST 8000 ON THAT IDEA THE CORPORATE SPONSOR IDEA SEEMS A LITTLE SAFER IT SOUNDS LIKE A GREAT IDEA SAYS MICHAEL BEGLAND SPOKESMAN FOR THE NATIONAL VOLUNTEER FIRE COUNCIL IN WASHINGTON DC WHAT BETTER MECHANISM FOR A COMPANY TO SHOW ITS SUPPORT FOR A COMMUNITY MR BEGLAND SAYS THE NATION'S 28000 VOLUNTEER COMPANIES ARE HAVING TO COME UP WITH MORE CREATIVE WAYS TO RAISE MONEY AS CHIEF HAECK SAYS FISH FRIES AND BINGOS JUST DON'T MAKE IT ANYMORE 9404270177 940427 BUSINESS BRIEF COASTAL'S NET SOARED IN FIRST PERIOD LIFTED BY IMPROVED MARGINS HOUSTON COASTAL CORP SAID NET INCOME MORE THAN TRIPLED IN THE FIRST QUARTER TO 811 MILLION ON THE BACK OF IMPROVED REFINING AND MARKETING PROFIT MARGINS THE COMPANY SAID ITS REFINING AND MARKETING BUSINESS'S OPERATING PROFIT SOARED TO 678 MILLION FROM 17 MILLION A YEAR EARLIER A MAJOR REASON WAS THE LOW PRICE OF CRUDE OIL THE FEEDSTOCK FOR REFINERIES WHICH HELPED SPARK INCREASED PROFITS INDUSTRYWIDE COASTAL SAID IT ALSO BENEFITED FROM THE ABNORMALLY COLD WEATHER THAT BOOSTED NORTHEAST HEATING OIL SALES AND FROM COMPANY IMPROVEMENTS TO FACILITIES IN LAST YEAR'S SECOND HALF THE RESULTS PLACE US WELL ALONG THE ROAD TOWARD OUR GOAL OF DOUBLING EARNINGS IN 1994 SAID OSCAR S WYATT CHAIRMAN AND CHIEF EXECUTIVE MR WYATT THE COMPANY'S FOUNDER TOOK BACK THE JOB OF CHIEF EXECUTIVE LAST SUMMER AMID SOUR EARNINGS AND THE RESIGNATION OF JAMES R PAUL IN PARTICULAR THE REFINING AND MARKETING BUSINESS RACKED UP OPERATING LOSSES TOTALING 2914 MILLION IN 1991 AND 1992 IN THE FIRST QUARTER COASTAL SAID NET INCOME ROSE TO 73 CENTS A SHARE UP FROM 25 MILLION OR 24 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 2 TO 27 BILLION WALL STREET REACTED POSITIVELY TO THE NEWS AS COASTAL SHARES ADVANCED 1375 OR 44 TO 32375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING BUT IT ISN'T CLEAR HOW LONG ROBUST REFINING MARGINS WILL LAST BECAUSE CRUDEOIL PRICES HAVE RISEN BY MORE THAN 2 A BARREL IN RECENT WEEKS RAISING THE COST TO REFINERS TO MAKE PETROLEUM PRODUCTS OFTEN RISING CRUDE PRICES HURT REFINERS' MARGINS BECAUSE THEY AREN'T ABLE TO SWIFTLY PASS THE HIGHER COSTS ALONG TO CUSTOMERS AS EVIDENCE OF A LONGERLASTING RECOVERY A COASTAL SPOKESMAN NOTED THAT THE COMPANY'S REFINING PROFITS ALSO IMPROVED SHARPLY IN THE 1993 FOURTH QUARTER COASTAL SAID ITS NATURALGAS PIPELINE OPERATING PROFIT ROSE 48 TO 1288 MILLION AND THAT THE COMPANY'S UNREGULATED NATURALGAS MARKETING ARM ACCOUNTED FOR MUCH OF THE INCREASED RESULTS COASTAL LIKE OTHER COMPANIES WITH INTERESTS IN GAS PIPELINES WHICH ARE REGULATED HAS BEEN FOCUSING MORE OF ITS ATTENTION ON ITS UNREGULATED BUSINESSES 9404270176 940427 KODAK HAD 26 RISE IN PROFIT ON OPERATIONS FIRST QUARTER WAS BOOSTED BY COSTCUTTING SOLID WORK BY IMAGING UNIT BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL DESPITE FLAT FIRSTQUARTER SALES EASTMAN KODAK CO REPORTED OPERATING EARNINGS CLIMBED 26 DUE TO COSTCUTTING AND A SOLID PERFORMANCE IN ITS CORE IMAGING DIVISION BUT THE ROCHESTER NY COMPANY SURPRISED ANALYSTS WHEN IT ALSO REPORTED THAT LAST YEAR'S FIRSTQUARTER EARNINGS INCLUDED A PREVIOUSLY UNREPORTED GAIN OF 10 CENTS A SHARE FROM THE SALE OF NONRECURRING ASSETS A NUMBER THAT KODAK HADN'T BROKEN OUT THE DISCLOSURE WAS IMPORTANT BECAUSE THE GAIN MADE LAST YEAR'S FIRSTQUARTER EARNINGS APPEAR HIGHER AND SKEWED ANALYSTS' 1994 PROJECTIONS EXCLUDING THAT GAIN AND EXTRAORDINARY ITEMS THIS QUARTER EARNINGS FROM CONTINUING OPERATIONS EQUALED 26 CENTS A SHARE IN THE LATEST QUARTER UP FROM 19 CENTS A SHARE THE YEAR EARLIER OBVIOUSLY THE UNREPORTED 10CENTASHARE GAIN WAS A SURPRISE SAID KIMBERLY RITRIEVI AN ANALYST AT LEHMAN BROTHERS MS RITRIEVI SAID SHE WOULD HAVE LOWERED HER 28CENTASHARE 1994 FIRSTQUARTER ESTIMATE HAD SHE KNOWN OF THE GAIN THE NEWS ABOUT THE GAIN MAY HELP EXPLAIN WHY GEORGE FISHER KODAK'S NEW CHIEF EXECUTIVE OFFICER WARNED IN DECEMBER THAT ANALYSTS' 1994 EARNINGS ESTIMATES WERE WELL ABOVE WHAT HE BELIEVED THE COMPANY COULD DELIVER THAT ANNOUNCEMENT CAUSED KODAK'S STOCK TO PLUNGE 12 NOTABLY KODAK'S FORMER CHIEF FINANCIAL OFFICER CHRISTOPHER J STEFFEN ABRUPTLY RESIGNED LAST YEAR THE SAME DAY KODAK REPORTED FIRSTQUARTER EARNINGS SAYING HE DISAGREED WITH THE COMPANY'S APPROACH TO SOLVING ITS PROBLEMS KODAK'S OVERALL FIRSTQUARTER SALES ROSE ONLY 14 TO 359 BILLION FROM 354 BILLION A YEAR AGO NET INCOME FOR THE PERIOD TOTALED 82 MILLION OR 25 CENTS A SHARE INCLUDING AN AFTERTAX CHARGE OF 12 MILLION OR FOUR CENTS A SHARE FOR EARLY REDEMPTION OF DEBT AND A THREECENTASHARE GAIN FROM SALE OF TECHNOLOGY IN THE YEAR EARLIER QUARTER KODAK POSTED A LOSS OF 202 BILLION OR 618 A SHARE WHICH INCLUDED ACCOUNTING CHARGES OF 217 BILLION AND 55 MILLION IN PROFIT FROM ITS CHEMICAL UNIT WHICH HAS SINCE BEEN SPUN OFF YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE KODAK'S COMMON CLOSED AT 4175 UP 125 CENTS ON VOLUME OF 13 MILLION SHARES IT'S NOT A BLOWOUT OR CHAMPAGNE QUARTER SAID MIKE ELLMANN AN ANALYST WITH WERTHEIM SCHRODER & CO BUT WE NEED TO BE ENCOURAGED ABOUT THE BEHAVIOR OF COSTS AND OPERATING EARNINGS MARKETING AND ADMINISTRATIVE EXPENSES FELL TO 112 BILLION FROM 119 BILLION IN THE YEARAGO QUARTER CAPITAL EXPENDITURE ALSO DECREASED TO 180 MILLION FROM 277 MILLION A YEAR BEFORE KODAK'S TROUBLE SPOTS WERE ITS HEALTH AND COPIER DIVISIONS AND WEAK COLOR PAPER SALES TOTAL HEALTH SALES DROPPED TO 12 BILLION FROM 125 BILLION LAST YEAR DUE PRIMARILY TO WEAK US SALES AT ITS STERLING WINTHROP UNIT WHERE THE OVERTHECOUNTER PHARMACEUTICAL BUSINESS SUFFERED YET HEALTH EARNINGS STILL ROSE 17 SALES GROWTH IN KODAK'S INFORMATIONSYSTEMS DIVISION WAS STUNTED BY SLUGGISH DEMAND IN OFFICE IMAGINGTHE COPIER UNIT THAT MR FISHER PROCLAIMED WAS NOT FOR SALE EARLIER THIS YEAR INFORMATION SYSTEMS' EARNINGS ROSE 21 TO 52 MILLION FROM 43 MILLION IMAGING SALES WHICH INCLUDES KODAK'S STAPLE OF FILM ROSE A COMFORTABLE 9 IN THE US AND 6 WORLDWIDE KODAK POINTED OUT TO ANALYSTS THAT ITS COLORPAPER SALES DETERIORATED THIS QUARTER AS US PRICES DROPPED WHILE VOLUME SALES AS WELL AS PRICES FELL OVERSEAS ESPECIALLY IN EUROPE KODAK HAS BROUGHT AN ANTIDUMPING ACTION AGAINST FUJI PHOTO FILM CO ALLEGING THAT THE RUGGED JAPANESE COMPETITOR HAS SOLD PAPER IN THE US AT ONEFOURTH WHAT IT CHARGES IN JAPAN AND THE NETHERLANDS PRELIMINARY TARIFFS OF AS MUCH AS 361 HAVE BEEN ISSUED OVERALL ANALYSTS WEREN'T SWAYED TO ABRUPTLY ALTER RATINGS OR ESTIMATES FOR KODAK THE GENERAL MOOD WAS ONE OF WAIT UNTIL NEXT WEEK WHEN MR FISHER IS SCHEDULED TO OUTLINE HIS VISION OF KODAK'S FUTURE FOR ANALYSTS PREVIOUSLY ANNOUNCED LAYOFFS OF 8000 TO 9000 EMPLOYEES ARE UNDER WAY WITH DIVISIONS SUCH AS COMMUNICATIONS FINANCE AND ADMINISTRATION SEEING CUTS OF AS MUCH AS 30 9404270175 940427 FOREIGN EXCHANGE DOLLAR CONTINUES TO FALL DESPITE NEWS OF CONSUMER CONFIDENCE SURGE IN US BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR'S SLIDE CONTINUED YESTERDAY UNDETERRED BY FRESH PROSPECTS FOR LOWER GERMAN INTEREST RATES AND A SURPRISINGLY OPTIMISTIC READING ON US CONSUMER CONFIDENCE TRADERS SAID BEARISH SENTIMENT FOR THE DOLLAR IS RUNNING SO DEEP THESE DAYS THAT EVEN GOOD NEWS ON THE US ECONOMIC FRONT IS REINTERPRETED TO CREATE REASONS TO SELL OFF THE DOLLAR FOR INSTANCE THE NEW YORKBASED CONFERENCE BOARD A BUSINESSRESEARCH GROUP SAID ITS APRIL CONSUMER CONFIDENCE INDEX ROSE TO A THREEYEAR HIGH AT 917 FROM AN UNREVISED 867 IN MARCH UP 24 POINTS FROM A YEAR AGO AND FAR ABOVE FORECASTS OF AN 865 READING FOR APRIL UNDER OTHER CIRCUMSTANCES THERE SHOULD HAVE BEEN A DOLLAR RALLY SAID HILLEL WAXMAN VICE PRESIDENT AT BANK LEUMI TRUST CO IN NEW YORK IT COULD HAVE BEEN SEEN AS A REASON FOR THE STOCK MARKET TO RALLY HE ADDED BUT OF COURSE STRONG CONSUMER CONFIDENCE NOWADAYS MEANS MORE INFLATIONARY PRESSURE THAT WILL DISRUPT THE BOND MARKET AND BRING THE DOLLAR DOWN LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16765 MARKS DOWN FROM 16795 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10280 YEN DOWN FROM 10310 YEN STERLING WAS TRADING AT 15065 UP FROM 14915 ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10280 YEN AND AT 16745 MARKS MR WAXMAN CAUTIONED THAT THE RISE IN CONSUMER CONFIDENCE MAY BE SHORTLIVED I DON'T KNOW WHY CONSUMERS ARE SO CONFIDENT I DON'T THINK IT'S GOING TO LAST US TREASURYS INITIALLY SOLD OFF ON THE CONSUMERCONFIDENCE REPORT BUT ENDED MODERATELY HIGHER ON THE DAY IN A LARGELY TECHNICAL RALLY THE DOW JONES INDUSTRIAL AVERAGE CLOSED AT 369954 OFF 624 POINTS THE CURRENCY MARKET ALSO SHRUGGED OFF SIGNS OF FURTHER GERMAN INTEREST RATE CUTS TO COME THAT ON BETTER DAYS MIGHT HAVE LENT SUPPORT TO THE DOLLAR AGAINST THE MARK MR WAXMAN SAID GERMANY'S SIX LEADING ECONOMIC INSTITUTES SAID THEY SEE SIGNIFICANTLY MORE ROOM FOR EASING OF SHORTTERM INTEREST RATES CONTROLLED BY THE BUNDESBANK AND PREDICTED A FURTHER TWOPERCENTAGEPOINT CUT IN THE CURRENT EASING CYCLE THE GERMAN CENTRAL BANK LAST EASED ITS FLOOR DISCOUNT AND CEILING LOMBARD RATES ON APRIL 14 TO 500 AND 650 RESPECTIVELY THE INSTITUTES PREDICTED THE CUTS WOULD BE IN LINE WITH A RATE OF GERMAN INFLATION AT AROUND 2 IN THE SECOND HALF OF THE YEAR MR WAXMAN NOTED THAT THE FORECAST OF A CUT IN THE EASING CYCLE DID MORE GOOD FOR GERMAN STOCKS AND BONDS THAN IT DID FOR THE DOLLAR THE DOLLAR ALSO GOT LITTLE SUPPORT AFTER HANS TIETMEYER BUNDESBANK PRESIDENT SUGGESTED GERMAN MONEYSUPPLY GROWTH RATES THAT CONTINUE TO COME IN FAR ABOVE TARGET WON'T NECESSARILY CRIMP FURTHER BUNDESBANK RATE CUTS GERMANY'S M3 MONEY SUPPLY GREW AT AN ANNUAL RATE OF 152 IN MARCH FAR ABOVE THE CENTRAL BANK'S TARGET CORRIDOR OF 4 TO 6 M3 ESSENTIALLY THE TOTAL OF CASH IN CIRCULATION AND SHORTTERM BANK ACCOUNTS IS THE BUNDESBANK'S PREFERRED INDICATOR OF INFLATIONARY PRESSURES 9404270174 940427 ENTERPRISE CHAMBER POLL FINDS OPPOSITION TO HEALTHCARE MANDATE BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US CHAMBER OF COMMERCE UNDER FIRE FROM SOME MEMBER COMPANIES FOR NOT PAYING ENOUGH ATTENTION TO THEIR VIEWS ISSUED POLL RESULTS SHOWING THAT MORE THAN 70 OF ITS MEMBERS POLLED OPPOSE REQUIRING EMPLOYERS TO PAY FOR PART OF WORKERS' HEALTH INSURANCE THE CHAMBER COMMISSIONED THE POLL AFTER MANY MEMBERS ESPECIALLY SMALL COMPANIES PROTESTED THE BUSINESS GROUP'S SEEMING SUPPORT FOR AN EMPLOYER MANDATE CHAMBER PRESIDENT RICHARD LESHER SUMMED UP THE POLL RESULTS SAYING NO GOVERNMENT TAKEOVER NO MANDATES NO HURRY BUT IN ANOTHER SIGN OF DISCORD WITHIN THE CHAMBER THE CHAIRMAN OF THE GROUP'S HEALTH AND EMPLOYEEBENEFITS COMMITTEE RESIGNED THAT POST ROBERT PATRICELLI WHO ALSO IS PRESIDENT OF VALUE HEALTH INC AN AVON CONN HEALTHRESEARCH FIRM SAID HE QUIT BECAUSE THE CHAMBER'S BOARD REFUSED TO ENDORSE EXPANDING INSURANCE COVERAGE FOR THE POOR AND REQUIRING EMPLOYERS TO OFFER BUT NOT PAY FOR HEALTH BENEFITS A SLIM MAJORITY OF MEMBERS RESPONDING TO THE LATEST POLL SUPPORTED BOTH IDEAS MR PATRICELLI WHO WILL REMAIN A MEMBER OF THE CHAMBER'S BOARD SAID IN A LETTER TO FELLOW BOARD MEMBERS THAT THERE IS LITTLE OR NO POLITICAL RISK IN SUPPORTING THE TWO IDEAS BECAUSE THEY'RE INCLUDED IN MOST CONGRESSIONAL HEALTHREFORM PROPOSALS HE ARGUED THAT WITHOUT THE RECOMMENDATIONS THE CHAMBER WOULD BE DUCKING ITS RESPONSIBILITY TO PROVIDE LEADERSHIP TO ITS MEMBERS ON IMPORTANT NATIONAL ISSUES BUT AT YESTERDAY'S PRESS CONFERENCE THE CHAMBER'S MR LESHER SAID THE ORGANIZATION CAN'T GO AGAINST A SUBSTANTIAL MINORITY OF ITS MEMBERSHIP AND EXPECT TO SURVIVE HE ADDED YOU MIGHT LEAD ONE GROUP AND MISREPRESENT THE OTHER IN THE CHAMBER SURVEY WHICH DREW RESPONSES FROM 40000 OF THE ORGANIZATION'S 220000 MEMBER COMPANIES AND ORGANIZATIONS 45 SAID EXPANDING COVERAGE FOR LOWINCOME PEOPLE IS ACCEPTABLE WHILE NEARLY 44 OPPOSED THE IDEA NEARLY HALF OF THE MEMBERS SAID THEY WOULD SUPPORT REQUIRING EMPLOYERS TO GIVE THEIR WORKERS ACCESS TO GROUPINSURANCE PLANS WITHOUT PAYING FOR THEM AND NEARLY 44 OPPOSED SUCH A PLAN THE POLL ALSO SHOWS CHAMBER MEMBERS CONTINUE TO STRONGLY OPPOSE A GOVERNMENTRUN HEALTHCARE SYSTEM THEY SUPPORT A SERIES OF EIGHT CHANGES IN THE CURRENT HEALTHCARE SYSTEM INCLUDING INSURANCEMARKET AND MALPRACTICE CHANGES THAT CHAMBER OFFICIALS DUBBED THE AMERICAN PLAN IN HIS LETTER TO HIS FELLOW BOARD MEMBERS LAST WEEK MR PATRICELLI SAID MOST EXPERTS AGREE SUCH REFORMS WILL DO LITTLE TO EXPAND COVERAGE TO THOSE CURRENTLY WITHOUT HEALTH INSURANCE THE CHAMBER POLLED ITS MEMBERS ON HEALTHCARE REFORM AFTER IT PROMPTED A REVOLT BY BACKING AN EMPLOYER MANDATE WHAT IT CALLED SHARED RESPONSIBILITY THAT WOULD FORCE EMPLOYERS TO PAY FOR PART OF THEIR WORKERS' HEALTH INSURANCE THE CHAMBER RECEIVED A BARRAGE OF ANGRY CALLS AND FAXES FROM MEMBERS ACROSS THE COUNTRY AND ABOUT TWO DOZEN MEMBERS DROPPED THEIR CHAMBER MEMBERSHIP OFFICIALS SAID THE ORGANIZATION ALSO INCURRED THE WRATH OF CONGRESSIONAL REPUBLICANS WHO ACCUSED THE CHAMBER OF TRYING TO CURRY FAVOR WITH THE CLINTON ADMINISTRATION AS A RESULT THE BOARD VOTED IN FEBRUARY TO OPPOSE MANDATES IN ANY FORM AND TO REJECT THE CLINTON ADMINISTRATION'S REFORM PROPOSAL IT ALSO ANNOUNCED THE POLL EARLIER THIS MONTH THE CHAMBER FIRED ITS TOP LOBBYIST AND ANNOUNCED CHANGES TO BRING THE GROUP'S POLICYMAKING FUNCTION CLOSER TO ITS MEMBERS YESTERDAY OHIO REPUBLICAN JOHN BOEHNER SAID HE AND OTHER CONSERVATIVE GOP HOUSE MEMBERS INCLUDING GEORGIA'S NEWT GINGRICH AND RICHARD ARMEY OF TEXAS MET WITH CHAMBER OFFICIALS RECENTLY ABOUT THE POLL AND OTHER ISSUES THINGS HAVE CHANGED SUBSTANTIALLY THERE THEY'VE COME A LONG WAY REP BOEHNER SAID THE RESULTS OF THE SURVEY DON'T COME AS ANY GREAT SURPRISE TO ME NOR ARE THEY A SURPRISE TO THE CHAMBER LEADERSHIP BUT THEY MAKE IT OBVIOUS WHERE THE PROBLEMS WERE AND I THINK THEY'VE BEEN TAKEN CARE OF MR BOEHNER HAD BLAMED MEMBERS OF THE GROUP'S WASHINGTON STAFF AND ITS BOARD FOR LEADING THE ORGANIZATION DOWN WHAT HE CONSIDERED TO BE THE WRONG ROAD 9404270173 940427 MARKETING & MEDIA SEGAMGM PACT WILL PROMPT QUESTION WHICH CAME FIRST MOVIE OR VIDEO GAME BY JIM CARLTON AND THOMAS R KING STAFF REPORTERS OF THE WALL STREET JOURNAL IN A MOVE THAT FURTHER LINKS HOLLYWOOD WITH SILICON VALLEY SEGA OF AMERICA INC AND METROGOLDWYNMAYER INC HAVE AGREED TO JOINTLY PRODUCE A LINEUP OF INTERACTIVE SOFTWARE TITLES FOR VIDEO GAMES AS WELL AS COLLABORATE ON MOVIES AND TELEVISION PROGRAMS THE DEAL TO BE ANNOUNCED TOMORROW MELDS THE TECHNICAL KNOWHOW OF SEGA THE REDWOOD CITY CALIF UNIT OF JAPAN'S SEGA ENTERPRISES LTD WITH THE CREATIVE TALENT AND FILM EXPERTISE OF MGM THE SANTA MONICA CALIF UNIT OF THE FRENCH BANK CREDIT LYONNAIS SA ALTHOUGH HOLLYWOOD STUDIOS AND VIDEOGAME MAKERS HAVE COLLABORATED BEFORE THIS VENTURE MARKS THE FIRST TIME THEY WILL WORK TOGETHER FROM STORY IDEA TO FINISHED PRODUCTS SEGA AND MGM HAVE ALSO AGREED TO JOINTLY MARKET A LINE OF PRODUCTS SUCH AS DOLLS TSHIRTS AND CAPS BASED ON THE CHARACTERS THEY DEVELOP THE COMPANIES ARE TO SHARE AN UNDISCLOSED AMOUNT OF COSTS AND COME UP WITH AT LEAST TWO INTERACTIVE TITLES FOR PLAY ON VARIOUS SEGA MACHINES WITHIN A YEAR THEY SAID THEY ALSO MAY DEVELOP GAMES BASED ON MOVIE RELEASES IN 1995 AND 1996 CLEARLY THIS DEAL ALLOWS US TO BLEND THE STRENGTHS OF BOTH COMPANIES SAID ALAN COLEFORD AN MGM EXECUTIVE VICE PRESIDENT TOM KALINSKE SEGA OF AMERICA'S PRESIDENT AND CHIEF EXECUTIVE OFFICER ADDED WE'VE BELIEVED IN THE MELDING OF LIVE ACTION VIDEO AND COMPUTER TECHNOLOGY LINKING UP WITH MGM ALLOWS US TO DO THAT WITH MORE EASE HOLLYWOOD'S FASCINATION WITH THE GAME BUSINESS HAS GROWN SIGNIFICANTLY IN THE PAST TWO YEARS SEGA ITSELF HAS WORKED WITH A NUMBER OF HOLLYWOOD STUDIOS INCLUDING WALT DISNEY CO WHICH DEVELOPED ALONG WITH SEGA AND VIRGIN GAMES SEGA'S BIGGEST HIT LAST CHRISTMAS A GAME BASED ON THE MOVIE ALADDIN TIME WARNER INC'S WARNER BROS STUDIO YESTERDAY REACHED AN AGREEMENT WITH ACCLAIM ENTERTAINMENT INC TO MAKE VIDEO GAME VERSIONS OF BATMAN FOREVER THE LATEST BATMAN SEQUEL WHICH IS TO BE RELEASED IN THEATERS IN THE SUMMER OF 1995 SOME STUDIOS HAVE THEIR OWN GAME COMPANIES SONY CORP'S MOVIE STUDIOS FOR EXAMPLE HAVE WORKED WITH ITS ELECTRONIC PUBLISHING UNIT TO CREATE GAMES PATTERNED AFTER MOVIES SUCH AS LAST ACTION HERO TO DATE THERE HASN'T BEEN A SUCCESSFUL BIGSCREEN VERSION OF A VIDEO GAME THE MOST HIGHPROFILE DISAPPOINTMENT WAS SUPER MARIO BROS A FILM BASED ON NINTENDO CHARACTERS THAT DISNEY RELEASED IN 1992 BUT MORE PROJECTS ARE ON THE WAY HOLLYWOOD WAS ABUZZ YESTERDAY WITH NEWS THAT ACTION STAR JEANCLAUDE VAN DAMME WILL BE PAID AS MUCH AS 8 MILLION TO STAR IN STREET FIGHTER A MOVIE BASED ON THE CAPCOM USA INC GAME SEGA OFFICIALS SAID THEY AND MGM WOULD FOCUS ON CDROM GAMES THAT FEATURE REAL ACTORS WHOSE PRERECORDED ACTIONS RESPOND TO THE COMMANDS OF A PLAYER TWO DIRECTORS AND TWO CREWS WILL BE USED IN FILMING ONE FOR THE VIDEO GAME THE OTHER FOR THE MOVIE 9404270172 940427 HEARD ON THE STREET PLAYS DU JOUR ROUND OUT MENU FOR RESTAURANT STOCKS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL RESTAURANT STOCKS ARE AMONG THE PRICIEST AROUND BUT J CARLO CANNELL WHO RUNS A SMALL PRIVATE INVESTMENT FUND IN SAN FRANCISCO THINKS HE HAS FOUND A SMART WAY TO PLAY THEM MR CANNELL'S TONGA FUND IS SHORTSELLING THE SHARES OF OUTBACK STEAKHOUSE A BET THAT THE HIGHFLYING STOCK WILL DECLINE AT THE SAME TIME HE IS INVESTING IN SHARES OF EL CHICO RESTAURANTS A SMALL DALLASBASED CHAIN OF MEXICAN EATERIES SALES AT RESTAURANTS OPEN AT LEAST A YEAR WERE UP 7 RECENTLY AT EL CHICO COMPARED TO A BIT OVER 4 AT OUTBACK SAYS MR CANNELL HE BELIEVES BOTH STOCKS DESERVE TO SELL AT A GOOD MULTIPLE SAY 20 TO 22 TIMES ESTIMATED 1994 EARNINGS BUT OUTBACK EXTREMELY POPULAR WITH INVESTORS FETCHES ABOUT 35 TIMES THE PREVAILING GUESS ON THIS YEAR'S EARNINGS EL CHICO'S MULTIPLE IS ONLY ABOUT 16 MR CANNELL'S TACTIC IS CALLED PAIRS TRADING THE TRADER GOES LONG ONE STOCK AND SHORT ANOTHER IN THE SAME INDUSTRY IN A SHORT SALE THE INVESTOR BORROWS STOCK AND SELLS IT HOPING THE PRICE WILL FALL EVENTUALLY HE MUST BUY SHARES TO RETURN TO THE LENDER IF THE PRICE FALLS IN THE MEANTIME HE PROFITS PAIRS TRADING IS MEANT TO INSULATE A PORTFOLIO FROM THE SWINGS OF THE OVERALL STOCK MARKET IF EL CHICO STOCK DOES BETTER THAN OUTBACK STOCK MR CANNELL WILL MAKE MONEY EVEN IF BOTH STOCKS DECLINE HOWEVER IF OUTBACK OUTPERFORMS EL CHICO HE'LL LOSE MONEY EVEN IF BOTH STOCKS RISE BESIDES PAIRS TRADING THERE'S ANOTHER SENSIBLE WAY TO MAKE A BUCK IN RESTAURANT STOCKS SOME MONEY MANAGERS SAY THAT'S TO BUY THE SHARES OF COMPANIES THAT AREN'T PURE PLAYS IN RESTAURANTS BUT HAVE SUBSTANTIAL RESTAURANT OPERATIONS PEPSICO OWNS TACO BELL KFC BETTER KNOWN AS KENTUCKY FRIED CHICKEN AND PIZZA HUT GENERAL MILLS OWNS THE OLIVE GARDEN RED LOBSTER AND CHINA COAST CHAINS GRAND METROPOLITAN OF BRITAIN OWNS BURGER KING RESTAURANTS AREN'T THE MAIN SHOW FOR THESE STOCKS BUT THEY CHIP IN A FAIR CHUNK OF PROFITS VALUE LINE INVESTMENT SURVEY PUTS AN ABOVEAVERAGE RATING ON PEPSICO BOTH FOR THE NEAR TERM AND THE LONG TERM ANALYST STEPHEN SANBORN SAYS THAT KFC'S ROTISSERIE CHICKEN LOOKS LIKE A STRONG PRODUCT AND THAT PEPSICO'S CHAINS ARE EXPANDING RAPIDLY DONALD YACKTMAN MANAGER OF YACKTMAN FUND IN CHICAGO IS A GENERAL MILLS FAN UNLIKE MOST RESTAURANTS HE SAYS THOSE RUN BY GENERAL MILLS HAVE SHOWN GOOD RETURNS ON TANGIBLE ASSETS OVER THE YEARS HE ACKNOWLEDGES THAT SAMESTORE SALES HAVEN'T BEEN INSPIRING RECENTLY AT OLIVE GARDEN OR RED LOBSTER BUT HE'S CONFIDENT THEY WILL REBOUND AS PEOPLE AGE THEY'RE GOING TO WANT MORE SITDOWN MEALS AND LESS FAST FOOD HE SAYS AS THEY GET MORE AFFLUENT PEOPLE START WANTING TO TAKE THEIR TIME AND TO EAT HEALTHIER CUISINE DAVID A KATZ CHIEF INVESTMENT OFFICER OF MATRIX ASSET ADVISORS IS INVESTING IN SIZZLER INTERNATIONAL STOCK AS A TURNAROUND PLAY TO DATE IT HAS BEEN A DISAPPOINTMENT HE CONCEDES THAT'S LARGELY BECAUSE OF A FOODPOISONING PROBLEM LAST YEAR THAT SICKENED SOME CUSTOMERS SIZZLER TRADED YESTERDAY AT 7 BUT MR KATZ THINKS SIZZLER'S THRIVING INTERNATIONAL BUSINESS IN AUSTRALIA AND THE FAR EAST IS WORTH 6 A SHARE ALL BY ITSELF ADD TO THAT THE COMPANY'S NEW BUFFALO RANCH HOUSE FORMAT AND THE CHANCE FOR A TURNAROUND IN THE US AIDED BY A POLICY OF CATERING TO CHILDREN AND MR KATZ FIGURES SIZZLER STOCK COULD HIT 11 OR 12 WITHIN 18 MONTHS THE CURRENT PRICE IS BELOW THE COMPANY'S TANGIBLE BOOK VALUE ASSETS MINUS LIABILITIES PER SHARE EXCLUDING INTANGIBLE ITEMS LIKE GOODWILL OF 770 MR KATZ DOESN'T ENGAGE IN SHORTSELLING BUT HE'D AVOID A TRIO OF HIGHFLYERS OUTBACK STEAKHOUSE STARBUCKS AND LONE STAR STEAKHOUSE/SALOON ALL SELL FOR HIGH MULTIPLES OF SALES EARNINGS AND BOOK AND HAVE SEEN SELLING BY INSIDERS HE SAYS FURTHERMORE ANALYSTS' EARNINGS ESTIMATES ON THESE COMPANIES ARE VERY TIGHTLY GROUPED SO IF EARNINGS COME IN EVEN A FEW PENNIES LIGHT THE STOCKS WILL GET CLOCKED BARRY ZIEGLER RESTAURANT ANALYST WITH AG EDWARDS & SONS IN ST LOUIS SAYS INVESTORS RIGHTLY PLACE A LOT OF EMPHASIS ON SAMESTORE SALES IN EVALUATING RESTAURANT CHAINS BECAUSE THESE FIGURES FOR OUTLETS OPEN MORE THAN A YEAR AREN'T INFLATED BY THE IMPACT OF NEWSTORE OPENINGS AMONG THE CHAINS SHOWING STRONG SAMESTORE SALES HE SAYS ARE WENDY'S INTERNATIONAL AND MCDONALD'S WEAKER ON THIS SCORE ARE RYAN'S FAMILY STEAKHOUSE VICORP AND SHONEY'S HE LIKES SHONEY'S ANYWAY PARTLY BECAUSE THE STOCK IS CHEAP ANOTHER SHONEY'S ADHERENT IS RONALD VON PENTZ CHIEF INVESTMENT OFFICER AT RIGGS INVESTMENT MANAGEMENT IN WASHINGTON DC HE IS PINNING HIS HOPES ON AN AGGRESSIVE REMODELING PLAN TO BOOST EARNINGS GROWTH AT SHONEY'S TO A 15 ANNUAL CLIP A CONTROVERSY OVER THE COMPANY'S PAST MINORITYHIRING PRACTICES IS BEGINNING TO FADE HE SAYS MEANWHILE THE STOCK LANGUISHES AT 13 TIMES EARNINGS MR VON PENTZ'S FIRM OWNS MCDONALD'S AND WENDY'S INTERNATIONAL AS WELL AS SHONEY'S BUT HE SAYS SHONEY'S IS THE ONLY ONE HE WOULD BUY AT CURRENT PRICES IN A SIMILAR VEIN JAMES KALIL JR OF COMPUVAL INVESTMENTS IN WILMINGTON DEL SAYS HE HAS MADE MONEY IN MORRISON RESTAURANTS BUT AT CURRENT PRICES WOULD BE MORE DRAWN TO SBARRO A CAFETERIASTYLE ITALIAN CHAIN MR KALIL SAYS SBARRO'S MODERATE PRICES PUT IT SQUARELY IN THE FASTESTGROWING PART OF THE MARKET HE ADDS THAT SBARRO IS GENERATING NICE FREE CASH FLOW AND RECENTLY RAISED ITS DIVIDEND MR KALIL WOULD AVOID APPLEBEE'S INTERNATIONAL THE STOCK HAS DONE EXCEPTIONALLY WELL HE SAYS BUT IT NOW SELLS FOR A LOFTY 50 TIMES TRAILING EARNINGS AND 36 TIMES ESTIMATED 1994 EARNINGS TOO RICH FOR HIS TASTE SOME OTHER MANAGERS WHO BOTH BUY STOCKS AND SELL SHORT SAY THEY DON'T CURRENTLY OWN ANY RESTAURANT SHARES BUT ARE DOING A BIT OF SHORTSELLING AT RTA MANAGEMENT IN FALLS CHURCH VA RICHARD C TUCK IS SHORT LANDRY'S SEA FOOD INTERNATIONAL WHICH JUST SEEMED TO BE OVERVALUED AT NUMERIC INVESTORS IN CAMBRIDGE MASS JIM SLOMAN COFOUNDER AND TRADER SAYS THE FIRM HAS ONCE AGAIN SLAPPED A SHORT SALE ON OUTBACK STEAKHOUSE IT WAS SHORT OUTBACK EARLIER THIS YEAR UNWOUND THE POSITION DURING THE RECENT MARKET CORRECTION AND REESTABLISHED IT A WEEK AGO AS OUTBACK BOUNCED BACK THE TABLE ACCOMPANYING THIS ARTICLE SHOWS VALUATIONS FOR A FISTFUL OF RESTAURANT STOCKS OUTBACK HAS THE HIGHEST PRICETOBOOKVALUE RATIO STARBUCKS HAS THE HIGHEST PRICE/EARNINGS RATIO AND LONE STAR STEAKHOUSE/SALOON RANKS HIGHEST IN TERMS OF PRICETOSALES BRINKER INTERNATIONAL INC'S STOCK RECENTLY TRADED AT 33 TIMES TRAILING 12MONTH EARNINGS NOT THE 24 MULTIPLE SHOWN IN THE STOCK TABLES AND THE TABLE OF RESTAURANT STOCKS ACCOMPANYING YESTERDAY'S HEARD ON THE STREET COLUMN THE CORRECTED FIGURE TAKES INTO ACCOUNT A 3FOR2 STOCK SPLIT 9404270171 940427 BUSINESS BRIEF AK STEEL HOLDING CORP STEELMAKER REPORTS PROFIT CITING CUTS STRONG DEMAND AK STEEL HOLDING CORP CITING COSTCUTTING AND STRONG DEMAND SAID IT EARNED 103 MILLION OR 40 CENTS A SHARE IN THE FIRST QUARTER COMPARED WITH A YEARAGO LOSS OF 338 MILLION OR 131 A SHARE JOHN C TUMAZOS AN ANALYST WITH DONALDSON LUFKIN & JENRETTE ESTIMATED AK STEEL'S OPERATING PROFIT PER TON AT 27 UP FROM A LOSS OF 37 A TON A YEAR EARLIER SALES CLIMBED 21 TO 4459 MILLION AK STEEL OF MIDDLETOWN OHIO WAS FORMERLY KNOWN AS ARMCO STEEL CO LP A JOINT VENTURE BETWEEN ARMCO INC OF PITTSBURGH AND KAWASAKI STEEL CORP OF TOKYO IT SOLD SHARES IN AN INITIAL PUBLIC OFFERING EARLIER THIS MONTH 9404270170 940427 IBM'S CZARNECKI RESIGNS NO 3 POST AFTER LESS THAN YEAR AS CHIEF OF HUMAN RESOURCES BLUNTSPOKEN EXBANKER WAS GIVEN DAUNTING TASK BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GERALD CZARNECKI A TOP EXECUTIVE AT INTERNATIONAL BUSINESS MACHINES CORP WHO WAS BROUGHT IN LESS THAN ONE YEAR AGO TO TAKE ON THE DAUNTING TASK OF REMAKING THE WORK FORCE AND RESHAPING THE SLUMBERING GIANT'S CULTURE ABRUPTLY RESIGNED YESTERDAY MR CZARNECKI A BLUNTSPOKEN FORMER CHAIRMAN OF A HAWAII BANK WHO WAS HANDPICKED FOR THE TOP HUMANRESOURCES JOB AT IBM BY ITS CHAIRMAN LOUIS V GERSTNER HAD ONE OF THE TOUGHEST ASSIGNMENTS IN CORPORATE AMERICA HE MADE PLENTY OF ENEMIES IN THE IBM WORK FORCE IN THE PAST YEAR AS HE IMPOSED MASSIVE LAYOFFS MINCING FEW WORDS IN TRYING TO CHANGE THE COMPANY'S PATERNALISTIC CULTURE INTO A MORE NIMBLE STRUCTURE THAT COULD RESPOND TO THE FASTCHANGING TECHNOLOGY INDUSTRY THE GERSTNER LIEUTENANT WHOSE HIRING AT IBM WAS ANNOUNCED ONLY LAST MAY 5 SAID IN AN INTERVIEW THAT HE WAS FOLLOWING HIS OWN ADVICE WHICH HE HAD BEEN LIBERALLY DISPENSING THROUGHOUT BIG BLUE AS HE ATTEMPTED TO ENERGIZE EMPLOYEES YOU OUGHT TO ENJOY WHAT YOU'RE DOING AND IF YOU'RE NOT YOU OUGHT TO CHANGE CALLING HIS DECISION ONE OF THE STRANGEST THINGS I'VE EVER DONE MR CZARNECKI SAID HE DIDN'T HAVE ANOTHER JOB YET AND HAS ZERO IDEA WHAT I'M GOING TO DO HE HAD BEEN DISCUSSING WITH MR GERSTNER THE POSSIBILITY OF LEAVING FOR THE PAST SEVERAL MONTHS A FORMER CHAIRMAN OF BANKAMERICA CORP'S BANK AMERICA HAWAII FORMERLY HONFED BANK WHERE HE WON PRAISE FOR AN EFFECTIVE TURNAROUND MR CZARNECKI 54 YEARS OLD SAID HE MISSED RUNNING A BUSINESS HIMSELF AND HAVING CONTACT WITH CUSTOMERS IN TAKING ON IBM'S SOPORIFIC CULTURE MR CZARNECKI HOSTED TOWN MEETINGS WHERE HE CHIDED EMPLOYEES TO STOP FEELING ENTITLED TO THEIR JOBS A LONGCHERISHED BELIEF AT IBM FOR THOSE WHO PERFORMED WELL AND TO DECIDE WHETHER THEY WERE COMMITTED TO CHANGING THE COMPUTER COMPANY IT'S GOING TO BE PAINFUL FOR THOSE WHO HAVE ONE FOOT ON THE PLATFORM AND ONE ON THE TRAIN MR CZARNECKI WAS FOND OF TELLING IBMERS BECAUSE THE TRAIN IS LEAVING SUCH UNADORNED ADVICE DID LITTLE TO HELP BOOST SAGGING MORALE AT IBM AND MANY LONGTIME EMPLOYEES FOUND MR CZARNECKI'S STYLE OFFENSIVE ACCUSTOMED TO MORE GENTLE HUMANRELATIONS MANAGEMENT THEY OBJECTED TO HIS CRITICISMS OF THE OLD IBM AND DISLIKED HIS CHALLENGES OF PAST PRACTICES RECENTLY MR CZARNECKI DECIDED TO CLOSE DOWN IBM'S ONCE HIGHLY PRIZED MANAGEMENTTRAINING SCHOOL AND OVERHAUL THE CURRICULUM HE ALSO HAD THE UNPLEASANT TASKS OF CUTTING HEALTH BENEFITS AND SLASHING SEVERANCE PACKAGES IN HALF COMPARED WITH THE OLD IBM AS MR GERSTNER CLAMPED DOWN ON SPENDING STILL MR CZARNECKI SAYS HE BELIEVES HE WAS EFFECTIVE IN HELPING TO CHANGE IBM AND THAT HE HAD NO PROBLEMS DOING THE JOB HE WAS ASKED TO DO MR CZARNECKI SAID THAT AS FAR AS HE KNEW MR GERSTNER WAS PLEASED WITH HIS WORK INSIDERS BELIEVE THE DECISION TO LEAVE WAS HIS OWN THE BIGGER UNCERTAINTY HOWEVER IS WHY MR CZARNECKI WHO WAS WELL AWARE OF THE UNPLEASANT DUTIES AHEAD AT THE COMPANY WHEN HE TOOK THE JOB HAS SO SUDDENLY DECIDED HE DOESN'T LIKE IT WELL ENOUGH TO STAY LONGER THAN ONE YEAR SOME IBM OFFICIALS SPECULATED THAT MR CZARNECKI WAS MORE COMFORTABLE AS A CHIEF EXECUTIVE OFFICER HIMSELF RATHER THAN AS MR GERSTNER'S NO 3 AS THE SENIOR VICE PRESIDENT FOR HUMAN RESOURCES AND THAT HE MAY HAVE CLASHED WITH MR GERSTNER'S HANDSON MANAGEMENT STYLE MR GERSTNER RATHER THAN LEAVE EMPLOYEE MATTERS TO HIS HANDPICKED PERSONNEL CHIEF HAS MADE IT CLEAR THAT HE IS LEADING THE CULTURE CHANGE AT IBM THE IBM CHAIRMAN HAS OFTEN SPOKEN TO ISSUES SUCH AS MORALE OFTEN COMMUNICATING WITH EMPLOYEES THROUGH EMAIL MR CZARNECKI SAID YESTERDAY THAT HE BELIEVES MR GERSTNER WAS SURPRISED WHEN HE INFORMED THE IBM CHAIRMAN OF THE DECISION TO LEAVE BUT THE CEO HAD COME TO UNDERSTAND THAT MR CZARNECKI FELT HE WASN'T DOING WHAT HE ENJOYED THE MOST RATHER THAN BE DISHONEST ABOUT IT I THOUGHT I'D BE HONEST MR CZARNECKI SAID THE DEPARTING EXECUTIVE'S RESPONSIBILITIES WILL BE SPLIT BETWEEN FINANCE CHIEF JEROME YORK AND VICE CHAIRMAN PAUL RIZZO MR GERSTNER SAID IN A MEMO TO EMPLOYEES UNTIL A SUCCESSOR TO MR CZARNECKI IS FOUND 9404270169 940427 TREASURY PLANS SALE OF 228 BILLION IN BILLS WASHINGTON THE TREASURY PLANS TO PAY DOWN 330 BILLION ON THE PUBLIC DEBT WITH THE SALE MONDAY OF ABOUT 228 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 261 BILLION THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON AUG 4 AND NOV 3 1994 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794M68 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794N83 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9404270168 940427 WHO'S NEWS ZENITH ELECTRONICS CORP ZENITH ELECTRONICS CORP GLENVIEW ILL ILENE S GORDON VICE PRESIDENTOPERATIONS FOR TENNECO INC WAS NAMED A DIRECTOR OF THIS MAKER OF CONSUMER ELECTRONIC PRODUCTS MS GORDON 40 YEARS OLD SUCCEEDS G RALPH GUTHRIE RETIRED CHAIRMAN OF URBAN INVESTMENT & DEVELOPMENT CO WHO DIED LAST JULY 9404270167 940427 TUESDAY'S MARKETS STOCKS END DAY MIXED BONDS GAIN TOBACCO SHARES RALLY ON BAT PROPOSAL DOLLAR FINISHES LOWER BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCKS ENDED MIXED AS BOND PRICES MOVED HIGHER ON SOME ENCOURAGING NEWS ABOUT INFLATION THE DOLLAR WAS LOWER IT WAS A DAY OF CROSSCURRENTS SAID DAVID SHULMAN STOCK STRATEGIST AT SALOMON BROTHERS MR SHULMAN POINTED OUT THAT TOBACCO STOCKS RALLIED ON NEWS THAT BA T INDUSTRIES WILL ACQUIRE AMERICAN TOBACCO FROM AMERICAN BRANDS FOR 1 BILLION AMERICAN BRANDS JUMPED 2 7/8 TO 34 5/8 PHILIP MORRIS 2 TO 54 1/4 AND RJR NABISCO 1/2 TO 7 BUT POORERTHANEXPECTED EARNINGS REPORTS SLAMMED STOCKS OF OTHER COMPANIES CHEVRON EASED 1 3/4 TO 90 7/8 AND UNUM A BIG INSURER FELL 4 1/4 TO 50 1/4 AFTER DISAPPOINTING FIRSTQUARTER EARNINGS MEANWHILE THE BOND MARKET ENJOYED ANOTHER STRONG DAY THE TREASURY'S 30YEAR BOND CLIMBED NEARLY 5/8 POINT OR NEARLY 625 FOR EACH 1000 FACE AMOUNT TO YIELD 710 JOSEPH LIRO CHIEF ECONOMIST AT SG WARBURG SAID BOND PRICES WERE BOOSTED IN THE MORNING BY A LABOR DEPARTMENT REPORT THAT SHOWED TOTAL EMPLOYMENT COST INCREASES AVERAGED 32 FOR THE 12 MONTHS ENDED IN MARCH COMPARED WITH 35 FOR THE YEAR ENDED IN DECEMBER AFTER FACTORING IN PRODUCTIVITY GAINS IT MEANS THAT LABOR COSTS ARE RISING 1 1/2 TO 2 WHICH IS GOOD NEWS ON THE INFLATION FRONT MR LIRO SAID THOUGH BOND PRICES GAVE BACK SOME OF THEIR GAINS AFTER A CONFERENCE BOARD REPORT SHOWED THAT CONSUMER CONFIDENCE SURGED TO 917 IN APRIL FROM 867 IN MARCH THE RALLY REGAINED STEAM IN THE AFTERNOON AMID SIGNS THAT COMMODITY PRICES ARE FALTERING THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 FUTURES CONTRACTS DECLINED 064 TO 22165 AS OIL PRICES FELL BELOW 17 A BARREL IT APPEARS THAT THE SURGE IN COMMODITY PRICES THAT WE SAW AT THE END OF 1993 AND THE BEGINNING OF THIS YEAR IS BEGINNING TO ABATE SAID MR LIRO FINANCIAL MARKETS WILL BE CLOSED TODAY TO OBSERVE A NATIONAL DAY OF MOURNING FOR FORMER PRESIDENT RICHARD M NIXON WHO DIED FRIDAY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 037 TO 11408 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 288 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1268 ISSUES ROSE AND 913 FELL BOND PRICES GAINED THE TREASURY'S 10YEAR ISSUE ROSE 1/4 POINT OR 250 FOR EACH 1000 FACE AMOUNT TO YIELD 682 THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16765 MARKS AND 10280 YEN COMPARED WITH 16795 MARKS AND 10310 YEN MONDAY 9404270166 940413 LETTERS TO THE EDITOR DATA LINKING WELFARE PREGNANCY MISQUOTED IN HIS FEB 9 ARTICLE WORKING TO MAKE WELFARE A CHORE DOUGLAS J BESHAROV OF THE AMERICAN ENTERPRISE INSTITUTE MISQUOTES AND MISINTERPRETS DATA ATTRIBUTED TO ME TO ARGUE THAT LARGE PERCENTAGES OF TEENAGERS DO NOT BELIEVE THAT HAVING A BABY WOULD BE INCONVENIENT IN FACT OUR STUDY OF BLACK TEENAGE WOMEN IN BALTIMORE CONDUCTED AT THE TIME OF A PREGNANCY TEST FOUND JUST THE OPPOSITE WHEN ASKED WHETHER A PREGNANCY WOULD BE A PROBLEM FOR THEM MORE THAN 75 OF THE YOUNG WOMEN NOT 31 AS MR BESHAROV MAINTAINED SAID YES IT WOULD AMONG THE FEWER THAN 25 WHO SAID IT WOULD NOT BE A PROBLEM AND GAVE VARIOUS REASONS FOR THAT BELIEF NONE SUGGESTED THAT WELFARE WOULD MAKE IT CONVENIENT MOREOVER EVEN AMONG THE FEW WHO DID NOT PERCEIVE A PREGNANCY AS PROBLEMATIC THE VAST MAJORITY SAID THEY HAD NOT WANTED TO CONCEIVE AND WOULD BE UNHAPPY OR VERY UNHAPPY IF THEY HAD MR BESHAROV'S IMPLICATION THAT LARGE NUMBERS OF YOUNG WOMEN ARE BEARING CHILDREN ON PURPOSE FOR WHATEVER REASONS FLIES IN THE FACE NOT ONLY OF OUR LOCAL DATA BUT OF NATIONAL DATA AS WELL IN VIRTUALLY ALL STUDIES BETWEEN 88 AND 90 OF YOUNG WOMEN SAY THEY DO NOT OR DID NOT WANT TO CONCEIVE CLEARLY IT WOULD BE TO THEIR ADVANTAGE AND THE ADVANTAGE OF SOCIETY AT LARGE IF WE HELPED THEM AVOID CONCEPTION WHY DOES THIS MATTER BECAUSE WHILE THE PRESENT ADMINISTRATION HAS COURAGEOUSLY OPENED DEBATE ON ISSUES OF CRITICAL IMPORTANCE TO THE COUNTRY IT WOULD APPEAR THAT IN SO DOING IT HAS ALSO OPENED THE WAY FOR SIMPLISTIC SOLUTIONS SOLUTIONS TO COMPLEX PROBLEMS THAT ARE ROOTED IN JOBLESSNESS AND ECONOMIC DEPRIVATION IT IS CLEAR THAT THERE IS SOME ASSOCIATION BETWEEN SINGLE TEENAGE MOTHERHOOD AND WELFARE BUT THERE IS A RELATIONSHIP BETWEEN SINGLE MOTHERHOOD AT ANY AGE AND WELFARE AND BETWEEN UNEMPLOYMENT AND WELFARE AS WELL IF THE DIRECTION OF CAUSALITY IS COMPLEX SO MUST BE THE RESPONSE IF WELFARE REFORM IS UNDERTAKEN ON THE BACKS OF ADOLESCENT MOTHERS ALONE WE WILL NOT SUCCEED AND MAY CREATE ANOTHER GENERATION OF POVERTY AND HOPELESSNESS IN THE PROCESS SEE RELATED LETTER LETTERS TO THE EDITOR TO CURB WELFARE USE MAKE IT UNCOMFORTABLE WSJ APRIL 27 1994 9404130057 YY94 MM04 9404270165 940427 WHO'S NEWS TAMBRANDS NAMES AS PRESIDENT CEO FOGARTY OF COLGATEPALMOLIVE US UNIT BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL TAMBRANDS INC STRUGGLING WITH SHRINKING MARKET SHARE AND A PERCEIVED LACK OF DIRECTION NAMED EDWARD T FOGARTY HEAD OF COLGATEPALMOLIVE CO'S US UNIT AS ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER ENDING A SEARCH THAT LASTED NEARLY A YEAR COLGATE APPOINTED LOIS JULIBER ITS 45YEAROLD CHIEF TECHNOLOGICAL OFFICER TO SUCCEED MR FOGARTY WHOSE APPOINTMENT AT TAMBRANDS IS EFFECTIVE MAY 31 THE MOVE MAKES MS JULIBER THE HIGHESTRANKING WOMAN IN THE GIANT CONSUMERPRODUCTS COMPANY'S HISTORY AND PUTS HER IN LINE TO POSSIBLY SUCCEED REUBEN MARK COLGATE'S 55YEAROLD CHAIRMAN AND CHIEF EXECUTIVE AS PRESIDENT OF THE UNIT MS JULIBER LIKE MR FOGARTY WILL HAVE RESPONSIBILITY FOR COLGATE'S CONSUMERPRODUCTS BUSINESSES IN THE US AND CANADA THE CHANGES COME AT A CRUCIAL TIME FOR BOTH COLGATE AND TAMBRANDS MR FOGARTY 57 IS ASSUMING TWO POSTS THAT HAVE BEEN VACANT SINCE LAST SUMMER WHEN MARTIN FC EMMETT WAS ABRUPTLY OUSTED AS CHIEF EXECUTIVE BY THE BOARD AND PRESIDENT AND CHIEF OPERATING OFFICER CHARLES J CHAPMAN WAS DEMOTED AT THE TIME THE TAMPON MAKER WAS ROILED BY CHARGES THAT MR EMMETT SPENT COMPANY MONEY LAVISHLY AND HAD QUESTIONABLE DEALINGS WITH OUTSIDE CONSULTANTS WHO WERE ALSO HIS FRIENDS MR EMMETT HAS DENIED ANY IMPROPRIETY THE WHITE PLAINS NY MAKER OF TAMPAX TAMPONS HASN'T REGAINED MARKET SHARE LOST DURING MR EMMETT'S REGIME AND ITS SHARE PRICE WHICH TRADED AS HIGH AS 70 IN 1992 HAS BEEN IN A STEADY DECLINE TAMBRANDS STOCK CLOSED YESTERDAY AT 36875 UP 1125 OR 31 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING WALL STREET'S RATHER MILD REACTION TO MR FOGARTY'S APPOINTMENT INDICATES GROWING CONCERN ABOUT THE COMPANY'S OUTLOOK TAMBRANDS' FIRSTQUARTER EARNINGS WERE NEARLY FLAT AT 22 MILLION OR 58 CENTS A SHARE COMPARED WITH THE YEAREARLIER 219 MILLION OR 56 CENTS A SHARE EXCLUDING THE EFFECT OF AN ACCOUNTING CHARGE TAKEN IN 1993 OPERATING PROFIT FELL 32 SALES FELL 10 TO 1392 MILLION FROM 1543 MILLION ANALYSTS WORRY ABOUT NEW COMPETITION FROM KIMBERLYCLARK CORP WHICH RECENTLY LAUNCHED A NEW TAMPON WITH A CURVED APPLICATOR STILL HIRING MR FOGARTY IS SOMETHING OF A COUP FOR TAMBRANDS AS THE MONTHS WORE ON INDUSTRY EXECUTIVES SAY NUMEROUS CANDIDATES TURNED THE JOB DOWN LEADING TAMBRANDS TO EVENTUALLY SWITCH EXECUTIVESEARCH FIRMS EARLY THIS YEAR A TAMBRANDS SPOKESMAN SAID THE BOARD SIMPLY WANTED TO DO THE SEARCH RIGHT THE SEARCH LASTED AS LONG AS IT TOOK TO FIND THE RIGHT CANDIDATE TAMBRANDS CHAIRMAN HOWARD B WENTZ JR WHO IS ALSO A COLGATE BOARD MEMBER FIRST CONTACTED MR MARK ABOUT THE POSSIBILITY OF HIRING MR FOGARTY TAMBRANDS' BOARD APPROVED MR FOGARTY'S APPOINTMENT AT A MEETING MONDAY NIGHT AND MR FOGARTY ANNOUNCED HIS MOVE TO HIS STAFF YESTERDAY MORNING WHILE THEY WERE SURPRISED BY HIS DEPARTURE COLGATE EXECUTIVES SAY MR FOGARTY WAS UNLIKELY TO SUCCEED MR MARK WHO SHOWS NO INTEREST IN RETIRING ANYTIME SOON MR FOGARTY COULDN'T BE REACHED FOR COMMENT WHEN MR FOGARTY WHO HAD WORKED FOR NEW YORKBASED COLGATE IN THE 1960S AND EARLY 1970S RETURNED TO COLGATE IN 1989 HE WAS VIEWED BY MANY AS A POSSIBLE HEIRAPPARENT TO MR MARK ANALYSTS SAY THAT COLGATE'S US BUSINESS PERFORMED REASONABLY WELL FOR THE FIRST FEW YEARS OF HIS TENURE BUT BY THE END OF 1993 COLGATE'S US UNIT WAS SUFFERING IN A NUMBER OF CATEGORIES FROM MARKETSHARE EROSION WHICH COMPANY EXECUTIVES HAVE BLAMED ON OVERLY AGGRESSIVE COSTCUTTING THAT STIFLED NEWPRODUCT ACTIVITY COLGATE WITH ABOUT 7 BILLION IN ANNUAL SALES IS IN THE MIDST OF AN OFFENSIVE TO INCREASE AD SPENDING AND ACCELERATE NEWPRODUCT ACTIVITY COLGATE'S STOCK ROSE 25 CENTS OR 04 TO 5825 IN BIG BOARD TRADING YESTERDAY MR FOGARTY BRINGS AN EXTENSIVE MARKETING BACKGROUND WHICH HIS CEO PREDECESSOR AT TAMBRANDS LACKED IN THE MID1970S HE WAS A VICE PRESIDENT AND GENERAL MANAGER OF THE PREDECESSOR TO PLAYTEX PRODUCTS INC WITH RESPONSIBILITIES FOR MARKETING TAMPONS THERE OUTSIDE DIRECTOR MR WENTZ WHO ALSO SERVES AS CHAIRMAN OF ESSTAR INC OF NEW HAVEN CONN WILL CONTINUE AS CHAIRMAN OF TAMBRANDS 9404270164 940427 BANK OF BOSTON CORP ACQUISITION BOSTON BANK OF BOSTON CORP SAID IT RECEIVED APPROVAL FROM THE FEDERAL COMPTROLLER OF THE CURRENCY FOR ITS PREVIOUSLY ANNOUNCED 247 MILLION ACQUISITION OF BANKWORCESTER CORP COMPLETION OF THE PURCHASE OF THE WORCESTER MASS BANK HOLDING COMPANY REQUIRES APPROVAL FROM MASSACHUSETTS REGULATORS AND IS SUBJECT TO A 30DAY REVIEW PERIOD BY THE US DEPARTMENT OF JUSTICE THE TRANSACTION IS EXPECTED TO CLOSE THIS SPRING BANK OF BOSTON ALSO A BANK HOLDING COMPANY HAS ASSETS OF 424 BILLION BANKWORCESTER HAS ASSETS OF 15 BILLION 9404270163 940427 EXCHANGES CLOSED TODAY STOCK EXCHANGES AND COMMODITY MARKETS ARE CLOSED TODAY IN OBSERVANCE OF A NATIONAL DAY OF MOURNING FOR FORMER PRESIDENT RICHARD M NIXON FEDERAL OFFICES ARE CLOSED THERE ISN'T ANY REGULAR MAIL DELIVERY 9404270162 940427 WHO'S NEWS SOUTHWESTERN PUBLIC SERVICE CO SOUTHWESTERN PUBLIC SERVICE CO AMARILLO TEXAS C CONEY BURGESS 56 YEARS OLD WAS ELECTED TO THE BOARD OF THIS UTILITY COMPANY INCREASING THE NUMBER OF MEMBERS TO 12 MR BURGESS IS CHAIRMAN OF HERRING BANCORP OF VERNON TEXAS AND OWNS AGRICULTURAL OPERATIONS IN THE TEXAS PANHANDLE 9404270161 940427 WHO'S NEWS UNION CAMP NAMES MCCLELLAND CHAIRMAN CEO EFFECTIVE JULY 1 WAYNE NJ UNION CAMP CORP NAMED ITS PRESIDENT AND CHIEF OPERATING OFFICER W CRAIG MCCLELLAND CHIEF EXECUTIVE AND CHAIRMAN EFFECTIVE JULY 1 HE SUCCEEDS GENE CARTLEDGE WHO IS RETIRING AT THE END OF JUNE AT 65 YEARS OLD MR CARTLEDGE HAS BEEN CHAIRMAN AND CEO SINCE 1986 JERRY H BALLENGEE 56 AN EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF UNION CAMP'S KRAFT PAPER AND BOARD DIVISION AND PACKAGING GROUP WILL SUCCEED MR MCCLELLAND AS PRESIDENT AND CHIEF OPERATING OFFICER 9404270160 940427 MARKETING & MEDIA HALLMARK CARDS TO ACQUIRE RHI FOR 365 MILLION BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL HALLMARK CARDS INC AGREED TO PAY 36 A SHARE OR ABOUT 365 MILLION TO ACQUIRE RHI ENTERTAINMENT INC AN INDEPENDENT PRODUCER OF FAMILYORIENTED TV MOVIES AND MINISERIES NEWS OF THE DEFINITIVE PACT SENT RHI SHARES UP 9125 OR 34 TO 35625 IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING RHI HAS BEEN ONE OF THE PRODUCERS OF THE HALLMARK HALL OF FAME TV SHOWS THAT THE CLOSELY HELD KANSAS CITY MO CONCERN HAS SPONSORED PRODUCING FIVE SUCH SPECIALS IN RECENT YEARS LAST YEAR THE TWO CONCERNS FORMED A VENTURE TO JOINTLY PRODUCE MADEFORTV MOVIES FOR CAPITAL CITIES/ABC INC HALLMARK HAS MADE IT CLEAR THAT IT WANTS TO EXPAND ITS INHOUSE TV PRODUCTION CAPABILITIES AND IT FORMED ITS SIGNBOARD HILL PRODUCTIONS UNIT TO THAT END IN 1992 SIGNBOARD INITIALLY COPRODUCED TWO HALL OF FAME SHOWS WITH A COMPANY OTHER THAN RHI AND EARLIER THIS YEAR COMPLETED ITS FIRST SOLO HALL OF FAME PRODUCTION THE TV MOVIES THAT HALLMARK'S UNIT AND RHI HAVE JOINTLY PRODUCED FOR ABC BEGAN APPEARING EARLY THIS YEAR AND MARK HALLMARK'S FIRST FORAY INTO PRODUCING SHOWS IT ISN'T SPONSORING RHI OFFERS A CHANCE FOR HALLMARK TO ENHANCE TELEVISION PRODUCTION EFFICIENCIES AND PROFITABLY EXTEND OUR INVOLVEMENT IN THE LONGFORM TELEVISION PROGRAMMING BUSINESS SAID IRVINE O HOCKADAY JR HALLMARK'S PRESIDENT AND CHIEF EXECUTIVE THE ACQUISITION OF RHI WHICH PRODUCED THE AWARDWINNING LONESOME DOVE MINISERIES AND THE RECENT TV ADAPTATION OF THE YEARLING UNDERSCORES HALLMARK'S FAMILY ORIENTATION MR HOCKADAY SAID RHI IS CURRENTLY PRODUCING SCARLETT AN EIGHTHOUR TELEVISION EVENT BASED ON THE SEQUEL TO GONE WITH THE WIND IT PRODUCED 29 MOVIES FOR NETWORK AND CABLETV LAST YEAR AND IS EXPECTED TO PROVIDE ABOUT 35 MOVIES IN 1994 IN 1993 RHI'S EARNINGS ROSE 79 TO 101 MILLION OR 124 A SHARE ON REVENUE THAT MORE THAN DOUBLED TO 1196 MILLION IT HAS ABOUT 50 EMPLOYEES AND A LIBRARY OF ABOUT 900 HOURS OF TV FEATURES THE COMPANY IS CONSIDERED TO HAVE EXCELLENT RELATIONSHIPS WITH MAJOR TV SPONSORS SUCH AS PROCTER & GAMBLE CO GENERAL MOTORS CORP AND AT&T CORP AS WELL AS HALLMARK RHI IS CONSIDERED THE US LEADER IN THE NICHE MARKET KNOWN AS FULLY SPONSORED PROGRAMMING IN WHICH A SPONSOR BUYS BROADCAST TIME FROM A NETWORK COMMISSIONS A PROGRAM AND THEN USES THE AD TIME TO RUN COMMERCIALS FOR ITS OWN PRODUCTS NEW LINE CINEMA A UNIT OF TURNER BROADCASTING SYSTEM INC IS RHI'S BIGGEST STOCKHOLDER WITH A 30 STAKE AND CHEMICAL BANKING CORP OWNS ANOTHER 13 BOTH THOSE STOCKHOLDERS HAVE AGREED TO TENDER THEIR HOLDINGS HALLMARK SAID HALLMARK BEST KNOWN FOR ITS GREETINGCARD LINE ALSO HAS INTERESTS IN GIFT RETAILING ART PRODUCTS AND CABLE TV 9404270159 940427 INTERNATIONAL SERBS APPEAR TO BE MEETING UN DEADLINE WITHDRAWAL FROM GORAZDE EASES IMMEDIATE THREAT OF NATO AIR STRIKES BY ROGER THUROW AND ROBERT S GREENBERGER STAFF REPORTERS OF THE WALL STREET JOURNAL BOSNIAN SERBS PULLED BACK HEAVY WEAPONRY FROM THE RAVAGED CITY OF GORAZDE UNITED NATIONS OFFICIALS SAID AVERTING THE NEED FOR IMMEDIATE AIR STRIKES BY THE NORTH ATLANTIC TREATY ORGANIZATION SECRETARY OF STATE WARREN CHRISTOPHER WHO WAS MEETING WITH EUROPEAN AND RUSSIAN OFFICIALS ON THE BOSNIAN CRISIS STRESSED THAT RECONNAISSANCE FLIGHTS TODAY WOULD DETERMINE IF THERE HAS BEEN PRACTICAL COMPLIANCE FOR THE DEADLINE WHICH CALLED FOR THE SERBS TO MOVE OUT OF A 12MILE EXCLUSION ZONE AROUND GORAZDE BY 8 PM EDT YESTERDAY OR FACE NATO AIR STRIKES SHORTLY AFTER THE DEADLINE A UN OFFICIAL SAID THE SERBS WERE IN EFFECTIVE COMPLIANCE WITH THE ULTIMATUM AND THAT AIR STRIKES WEREN'T NEEDED FOR NOW ACCORDING TO A SENIOR US OFFICIAL SEVERAL TANKS AND ARTILLERY PIECES REMAINED IN THE EXCLUSION ZONE BUT WERE IN A CONFIGURATION INDICATING THAT THEY WERE BEING TRANSPORTED OR ABANDONED THEY ARE NOT A THREAT TO BE USED AS BEST WE CAN TELL HE SAID IN RESPONSE TO A QUESTION HE SAID IT WAS POSSIBLE THAT NATO COULD HIT ANY WEAPONS LEFT BEHIND BUT IT WOULD BE STUPID BECAUSE SUCH TARGETS AREN'T MILITARILY SIGNIFICANT DESPITE THE WITHDRAWAL US OFFICIALS FEAR THAT IT COULD BE FOLLOWED BY FURTHER SERB CAT AND MOUSE TACTICS US AND NATO OFFICIALS HAVE SAID FOR SEVERAL DAYS THAT THEY EXPECT THE BOSNIAN SERBS TO DO JUST ENOUGH TO COMPLY WITH THE LATEST ULTIMATUM BUT TO TEST WESTERN RESOLVE IN OTHER LOCATIONS THREATENED EARLIER THIS YEAR WITH AIR STRIKES IN SARAJEVO THE BOSNIAN SERBS WITHDREW ONLY TO LAUNCH THE BRUTAL SIEGE OF GORAZDE THE SERBS' LATEST RETREAT WHICH FOLLOWED A THREEWEEK ONSLAUGHT CAME AS A RELIEF TO UN OFFICIALS WHO FEARED THAT A NATO BOMBING RAID WOULD PUT UN SOLDIERS IN BOSNIA IN DANGER OF SERB RETALIATION IN PARTICULAR THE 200 OR SO SOLDIERS THAT HAVE BEEN DEPLOYED BETWEEN SERBIAN AND BOSNIAN GOVERNMENT TROOPS AROUND GORAZDE WOULD BE SITTING DUCKS IN THE PAST THE SERBS HAVE FOUND A VARIETY OF WAYS TO RETALIATE WITHOUT GETTING HIT SUCH AS INTERRUPTING AID CONVOYS OR TAKING HOSTAGES THEY CAN PURSUE SUCH ACTIVITIES WHILE THEY TRY TO DETERMINE WHERE THE WEST'S RESOLVE MIGHT EBB THEN RESUME SHELLING AND OTHER ATTACKS MEANWHILE MR CHRISTOPHER MET WITH HIS RUSSIAN COUNTERPART IN GENEVA TO DEVELOP A RENEWED PUSH FOR A PEACE AGREEMENT ON THE BALKANS FOLLOWING THE TALKS RUSSIAN FOREIGN MINISTER ANDREI KOZYREV SAID THAT AS PART OF A POLITICAL SETTLEMENT OF THE WAR IN BOSNIA IT IS IMPORTANT THAT BOTH SIDES WOULD SEEK A COMPROMISE WHICH WOULD INCLUDE A CERTAIN WITHDRAWAL BY SERBS FROM TERRITORIES THEY HAVE CONQUERED THE SERBS NOW CONTROL ABOUT 70 OF BOSNIAN TERRITORY MR KOZYREV ALSO SAID AT A NEWS CONFERENCE WITH MR CHRISTOPHER THAT IF THERE IS A CESSATION OF HOSTILITIES IN BOSNIA THE POSSIBILITY WOULD OPEN UP FOR A LIFTING OF SANCTIONS AGAINST THE SERBS BUT MR KOZYREV DIDN'T SAY WHETHER RUSSIA WOULD FULLY SUPPORT THE USE OF NATO FORCE AGAINST THE SERBS HE SAID MILITARY ACTION WOULD BE AN EXTREME MEASURE IN AN EXTREME SITUATION BUT THAT A SOLUTION CAN ONLY BE FOUND WITH POLITICAL MEANS MR CHRISTOPHER SAID MEMBERS OF THE SOCALLED CONTACT GROUP THE COORDINATING BODY OF DIPLOMATS THAT WAS ANNOUNCED EARLIER THIS WEEK IN LONDON PROBABLY WILL GO TO SARAJEVO TOMORROW TO RESUME NEGOTIATIONS THAT BROKE DOWN SEVERAL WEEKS AGO WHEN THE BOSNIAN SERBS UNLEASHED THEIR ATTACKS ON GORAZDE EARLIER YESTERDAY SPEAKING IN LONDON AT A JOINT NEWS CONFERENCE WITH MR CHRISTOPHER BRITISH FOREIGN SECRETARY DOUGLAS HURD REAFFIRMED THAT THERE WILL BE AN AIR STRIKE IF THE SERBS DON'T COMPLY WITH THE DEADLINE BUT A SENIOR US OFFICIAL ADDED A FEW MINUTES LATER THAT THE DEADLINE MIGHT NOT BE IRONCLAD I THINK THE QUESTION THAT WE'LL BE LOOKING AT IS ARE THEY MOVING TOWARD COMPLIANCE WITH THE TERMS OF THE NATO ULTIMATUM THE OFFICIAL SAID 9404270158 940427 TEXAS JOURNAL SHOPPING ALERT FOOD FIGHT LOOMS IN PRODUCE AISLE BY BOB ORTEGA ORGANIC IS ABOUT TO BECOME A FIGHTING WORD WHOLE FOODS MARKET INC THE AUSTINBASED HEALTHFOOD SUPERMARKET CHAIN IS LAUNCHING A PUBLICITY CAMPAIGN THIS WEEK IN SUPPORT OF A PESTICIDEREFORM BILL NOW BEFORE CONGRESS THAT CALLS FOR PHASING OUT MANY OF THE COUNTRY'S MOST WIDELY USED PESTICIDES BESIDES TRYING TO DRUM UP SUPPORT FOR THE BILL TITLED THE PESTICIDE FOOD SAFETY ACT OF 1994 THE CAMPAIGN PROMISES TO PROVOKE THE IRE OF COMPETING GROCERS AND FOOD SUPPLIERS THAT'S BECAUSE THE CAMPAIGN WHICH WILL INCLUDE RADIO ADVERTISEMENTS IN AUSTIN AS WELL AS A VARIETY OF INSTORE DISPLAYS FLIERS AND INFORMATION AT THE COMPANY'S STORES NATIONWIDE URGES CONSUMERS TO CHOOSE ORGANIC FOODS FOODS GROWN WITHOUT PESTICIDES HERBIDICES OR OTHER SYNTHETIC CHEMICALS SUCH FOODS SAYS WHOLE FOODS WHICH GUESS WHAT PRIMARILY SELLS ORGANIC FOODS CUT THE RISK OF BEING EXPOSED TO ESTROGENIC CHEMICALS FOUND IN PESTICIDES WIDELY USED ON FOODS STUDIES HAVE LINKED ESTROGENIC CHEMICALS TO BREAST AND PROSTATE CANCER AND THE PESTICIDEREFORM BILL SEEKS TO LIMIT USE OF THE CHEMICALS BUT TO PURVEYORS OF FOODS THAT AREN'T ORGANIC THAT IS THE VAST MAJORITY OF GROCERS THIS APPROACH FEELS LIKE A FRONTAL ATTACK WE'RE SATISFIED WITH THE SAFETY OF THE PRODUCTS OUR GROCERIES ARE SELLING SAYS RICHARD JOHNSON CHIEF EXECUTIVE OF THE TEXAS RETAIL GROCERS ASSOCIATION MR JOHNSON WHO HASN'T YET SEEN WHOLE FOOD'S MATERIAL ADDS I'D CERTAINLY BE CONCERNED IF THEY'RE SPREADING FALSE INFORMATION FOR COMPETITIVE REASONS DAVID MATTHIS PRESIDENT OF WHOLE FOODS' SOUTHWEST REGION WHICH INCLUDES TEXAS AND LOUISIANA SAYS THAT IN PAST PUBLICITY CAMPAIGNS ABOUT FOOD SAFETY WHOLE FOODS HAS DRAWN A STRONG COUNTERATTACK ONCE WHEN IT TOUTED THE BENEFITS OF NATURALLY RAISED HORMONE AND PESTICIDEFREE BEEF THAT PROVOKED AN ANGRY RESPONSE FROM THE BEEF INDUSTRY THEY'RE VERY WELL ORGANIZED HE SAYS 9404270157 940427 WHO'S NEWS WELLSGARDNER NAMES NEW CHIEF CHAIRMAN POSTS 1STPERIOD LOSS CHICAGO WELLSGARDNER ELECTRONICS CORP NAMED ANTHONY SPIER CHAIRMAN AND CHIEF EXECUTIVE OFFICER EFFECTIVE IMMEDIATELY MR SPIER 50 YEARS OLD IS FORMER PRESIDENT AND CEO OF OCEBRUNING INC ITASCA ILL AN ENGINEERINGGRAPHICS COMPANY HE HAS BEEN A WELLSGARDNER DIRECTOR SINCE 1990 WELLSGARDNER A MAKER OF VIDEO MONITORS ALSO REPORTED A WIDENED FIRSTQUARTER NET LOSS OF 13 MILLION OR 33 CENTS A SHARE REFLECTING A 762000 SPECIAL CHARGE FOR MANAGEMENT REORGANIZATION IN THE YEAREARLIER QUARTER THE COMPANY HAD A LOSS OF 236000 OR SIX CENTS A SHARE SALES SLID 23 TO 76 MILLION FROM 99 MILLION MANAGEMENT ATTRIBUTED THE RESULTS TO A DECLINE IN THE MARKET FOR COINOPERATED VIDEOARCADE GAMES SALES OF VIDEO MONITORS TO ARCADEGAME CUSTOMERS FELL 40 9404270156 940427 INTERNATIONAL NAFTA PARTNERS MOVE TO REIN IN THEIR CURRENCIES BY KENNETH H BACON AND CRAIG TORRES STAFF REPORTERS OF THE WALL STREET JOURNAL THE US MEXICO AND CANADA ANNOUNCED A PERMANENT ARRANGEMENT FOR COMBATING EXCHANGERATE TURBULENCE AMONG THEIR CURRENCIES AS PART OF A PLAN TO EXPAND ECONOMIC AND FINANCIAL COOPERATION IN MEXICO THE MOVE WAS SEEN AS A WAY TO SUPPORT THE PESO WHICH HAS BEEN UNDER PRESSURE AND FINANCIAL MARKETS REACTED POSITIVELY TO THE AGREEMENT REACHED BY THE FINANCE MINISTERS AND CENTRAL BANK CHIEFS OF THE THREE COUNTRIES BOTH THE PESO AND STOCK PRICES FIRMED IN MEXICO CITY THE MEXICAN CURRENCY CHANGED HANDS AT 329 PESOS PER DOLLAR IN LATE INTERBANK TRADING YESTERDAY UP ABOUT 15 FROM THE PREVIOUS DAY MEXICAN SHARE PRICES ROSE ON THE NEWS OF THE SWAP AGREEMENT WITH BOLSA'S IPC INDEX RISING 4 AT A NEWS CONFERENCE IN WASHINGTON TREASURY SECRETARY LLOYD BENTSEN READ A JOINT STATEMENT ANNOUNCING THAT THE THREE COUNTRIES HAVE ESTABLISHED AN 88 BILLION TRILATERAL FOREIGNEXCHANGE SWAP FACILITY THAT WILL BE AVAILABLE TO MAINTAIN ORDERLY EXCHANGE MARKETS THE PACT WAS THE LATEST INDICATION OF THE INCREASING INTERDEPENDENCE OF THE THREE NORTH AMERICAN ECONOMIES AND THE SHARED INTEREST IN STABILITY FOREIGNEXCHANGE TRADERS SAID THE SWAP LINES MEAN MEXICO SHOULD IN THE SHORTTERM BE ABLE TO PREVENT THE PESO FROM PIERCING THE LOWER LIMIT SET BY THE GOVERNMENT YESTERDAY THAT LIMIT STOOD AT 33764 PESOS PER US DOLLAR WE WILL STAY FIRMLY COMMITTED TO THE PACT THAT LIMITS EXCHANGERATE DEVALUATIONS SAID FINANCE MINISTER PEDRO ASPE A PACT BETWEEN GOVERNMENT LABOR AND BUSINESS PERMITS A 00004 PESO DAILY DEVALUATION TO COMPENSATE FOR THE COUNTRY'S 8 INFLATION RATE THE CENTERPIECE OF THE NEW 88 BILLION POOL THAT CENTRAL BANKS CAN DRAW ON TO COUNTER SHARP MOVES IN EXCHANGE RATES IS THE 6 BILLION SWAP AGREEMENT THAT WASHINGTON AND MEXICO CITY ESTABLISHED LAST FALL WHEN THE US CONGRESS WAS CONSIDERING THE NORTH AMERICAN FREE TRADE AGREEMENT THE SWAP LINE WASN'T NEEDED LAST YEAR NOR WAS IT USED WHEN REACTIVATED LAST MONTH AFTER THE ASSASSINATION OF MEXICO'S LEADING PRESIDENTIAL CANDIDATE YESTERDAY THE US AND MEXICO SAID THE 6 BILLION CREDIT POOL WILL BECOME PERMANENT MEANING IT CAN BE USED MORE QUICKLY IN TIMES OF CRISIS THE US TREASURY AND THE FEDERAL RESERVE EACH WILL CONTRIBUTE AS MUCH AS 3 BILLION THE BANK OF CANADA AND THE BANK OF MEXICO EXPANDED THEIR EXISTING SWAP ARRANGEMENT TO ONE BILLION CANADIAN DOLLARS US7278 MILLION FROM C200 MILLION AND THE FED AND THE CANADIAN CENTRAL BANK REAFFIRMED THEIR EXISTING 2 BILLION SWAP LINE IN ADDITION THE FINANCE MINISTERS AND CENTRAL BANK CHIEFS FROM THE THREE COUNTRIES SAID THEY WILL MEET AT LEAST ONCE A YEAR AS THE NORTH AMERICAN FINANCIAL GROUP TO DISCUSS MUTUAL PROBLEMS US OFFICIALS STRESSED THAT THE GOVERNMENTS HAVE NO INTENTION OF USING THE SWAP LINES TO FIX OR COORDINATE EXCHANGE RATES THE IDEA IS TO CREATE EMERGENCY TOOLS FOR CALMING DISORDERLY MARKETS IN FACT THE THREE NATIONS HAVE BEEN RELUCTANT TO ACTIVATE SWAP LINES WHICH CAN BE USED TO BUY OR SELL CURRENCIES TO STABILIZE VOLATILE PRICE MOVEMENTS THE US AND CANADA LAST DREW ON THEIR SWAP LINES IN 1958 THE US AND MEXICO LAST USED SWAPS IN 1990 THE IMMEDIATE IMPACT OF THE ARRANGEMENT WILL BE TO STRENGTHEN THE PESO BY REITERATING THE US'S WILLINGNESS TO ASSIST MEXICO WHEN INVITED IN THE FACE OF POLITICAL NERVOUSNESS AND SLOW ECONOMIC GROWTH MEXICO IS SUPPORTING THE PESO WITH HIGH INTEREST RATES MR BENTSEN SAID I'M CONFIDENT MEXICO'S ON THE RIGHT ECONOMIC PATH THE FUNDAMENTALS ARE STRONG AND THEY HAVE SUBSTANTIAL RESERVES BUT LONGTERM INVESTOR CONFIDENCE IS SHAKY EARLIER THIS WEEK FOR INSTANCE BANCO DE MEXICO AWARDED NO BIDS AT ALL FOR A ONEYEAR FOREIGNEXCHANGE PROTECTED BOND INVESTORS ARE NOT WILLING TO TAKE MEXICAN SOVEREIGN RISK EVEN ON A DOLLAR BASIS SAID A PESO TRADER 9404270155 940427 LAW LIFE ON THE LAM EXCEO TELLS HOW TO VANISH BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL UNION MO TO HEAR ONETIME FUGITIVE MALCOLM CHEEK TELL IT DISAPPEARING IN AMERICA IS PRETTY EASY IF YOU KNOW WHAT TO DO AND GET SOME HELP ALONG THE WAY NOW IN JAIL HERE ON FEDERAL FRAUD CHARGES THE JOVIAL FORMER CHIEF EXECUTIVE OF A NOWDEFUNCT ENGINEERING COMPANY Y&A GROUP INC PROVIDES A DETAILED ACCOUNT OF HIS THREE YEARS ON THE LAM OF COURSE MR CHEEK HAS OFTEN PLAYED FAST AND LOOSE WITH THE TRUTH BUT AS HE TELLS HIS TALE WHAT'S SURPRISING IS THAT HE HARDLY PLANNED HIS GETAWAY OR HIS NEW LIFE WITH A BEARD A NEW CREDIT HISTORY AND THE INVALUABLE HELP OF WHAT HE CLAIMS WAS A SHADOWY CONSULTANT TO FUGITIVES MR CHEEK 44 YEARS OLD MANAGED UNTIL EARLIER THIS MONTH TO LIVE A PLEASANT LIFE IN A RURAL GEORGIA HAMLET AS PAUL FENWICK MR CHEEK WAS THE SUBJECT OF AN APRIL 7 WALL STREET JOURNAL ARTICLE IN FACT MR CHEEK BELIEVES THAT HE WOULD STILL BE A FREE MAN IF HE HADN'T BEGUN A BUSINESS RELATIONSHIP WITH AND STARTED DATING AN EAST ELLIJAY GA BUSINESSWOMAN AND IF HE HAD SECURED IDENTIFICATION THAT WOULD HAVE ALLOWED A SECOND DISAPPEARANCE HIS COVER WAS GOOD ENOUGH THAT THE FEDERAL BUREAU OF INVESTIGATION DIDN'T REALIZE WHO HE WAS AFTER INTERVIEWING HIM ABOUT AN UNRELATED FUGITIVE IT JUST FLABBERGASTED ME THAT THE FBI CAME IN AND DIDN'T MAKE THE CONNECTION HE SAYS THE FBI CONFIRMS THE INCIDENT OCCURRED LIFE ON THE RUN BEGAN MINUTES BEFORE MIDNIGHT ON MARCH 4 1991 WHEN MR CHEEK SLIPPED OUT OF HIS ROOM AT NEW YORK'S GRAND HYATT HOTEL HE FIGURED THAT AFTER HIS DISAPPEARANCE WAS DISCOVERED PERHAPS PEOPLE WOULD THINK HE HAD BEEN ABDUCTED ACTUALLY A RELATIVE WAS WAITING IN A CAR NEAR THE HOTEL AND TOGETHER THEY DROVE ALL NIGHT AND MOST OF THE NEXT DAY TOWARD A SECRET RENDEZVOUS NEAR GAINESVILLE GA BEFORE THAT TRIP HE HAD WIRE TRANSFERRED 25000 TO AN ATLANTA BANK ARRANGED TO SELL SOME VALUABLE FURNITURE AND PERSUADED ANOTHER RELATIVE TO BUY A CAR AND A MODEST LOG HOME FOR HIM IN NORTH GEORGIA ST LOUIS FBI AGENT JOHN T GULLEY CONFIRMED IN A COURT HEARING THAT RELATIVES HELPED MR CHEEK ESCAPE BUT MOST INSTRUMENTAL IN HIS SUCCESSFUL DISAPPEARANCE WAS THE MAN MR CHEEK CLAIMS HE MET IN THE RENDEZVOUS BY INTERSTATE 85 NEAR GAINESVILLE AS MR CHEEK TELLS IT A NEW YORK BUSINESS ASSOCIATE WHOM HE WON'T IDENTIFY ARRANGED FOR HIM TO MEET THERE WITH A MYSTERIOUS TENNESSEEAN WHO CALLED HIMSELF BOB WILLIAMS AND SERVED AS A KIND OF CONSULTANT HELPING FUGITIVES FBI AGENTS SAY THEY CAN'T CONFIRM WHETHER THERE WAS INDEED ANY MYSTERIOUS STRANGER BUT THEY SAY MR CHEEK TESTIFIED ABOUT SUCH A PERSON DURING A COURT HEARING BY MR CHEEK'S ACCOUNT THE MAN MET HIM ALONG THE HIGHWAY AND ESCORTED HIM TO HIS NEW HOME IN CHERRY LOG GA NEAR EAST ELLIJAY THE TENNESSEE MAN ALSO PROVIDED AN INSTRUCTIONAL TEXT THAT ENABLED MR CHEEK TO FALSIFY ID CARDS MR CHEEK ALSO TOOK OVER THE CREDIT HISTORY OF A DISTANT RELATIVE 73YEAROLD PAUL FENWICK AFTER A FEW WEEKS HIS MYSTERIOUS BENEFACTOR DISAPPEARED I'VE NEVER SEEN OR HEARD FROM BOB SINCE SAYS MR CHEEK INTERVIEWED MONDAY AFTERNOON ASIDE FROM HIS PRISONISSUE ORANGE JUMPSUIT AND SLIPPERS MR CHEEK NOW LOOKS MUCH THE WAY HE DID IN 1991 WHEN HE WAS CHIEF EXECUTIVE OFFICER OF Y&A THEN A PUBLICLY TRADED ENGINEERING FIRM BASED IN CREVE COEUR MO MR CHEEK SAYS HE DROPPED OUT OF SIGHT BECAUSE HIS COMPANY WAS ABOUT TO COLLAPSE AND HE PANICKED IN HIS FIRST FEW WEEKS IN CHERRY LOG MR CHEEK THEN WITHOUT A NEW ID RECALLS BEING IN A CONSTANT STATE OF NEARPANIC HE WORRIED FOR INSTANCE THAT A POLICE OFFICER MIGHT STOP HIM FOR RUNNING A STOP SIGN THE FUGITIVE TOOK HIS OWN BIRTH CERTIFICATE WHITING OUT KEY PORTIONS AND CREATING A NEW CERTIFICATE UNDER THE NAME PAUL FENWICK THEN HE WENT TO A STATIONERY STORE AND HAD A RUBBER SEAL MADE SUPPOSEDLY A FAMILY CREST FOR A FAMILY REUNION THAT LOOKED REMARKABLY LIKE THE MASSACHUSETTS STATE SEAL ARMED NOW WITH A MASSACHUSETTS BIRTH CERTIFICATE HE ACQUIRED A BAPTISMAL CERTIFICATE FROM A RELIGIOUSSUPPLY STORE AND SENT BOTH PIECES OF ID TO THE US SOCIAL SECURITY ADMINISTRATION IN ATLANTA THEN HE HELD HIS BREATH FEARING THE WORST BUT 10 DAYS LATER THE NEW SOCIAL SECURITY CARD FOR PAUL FENWICK ARRIVED IN THE MAIL I GOT THIS GODSENT LITTLE CARD THAT I COULDN'T BELIEVE I GOT SAYS MR CHEEK KNOWING THAT THE REAL PAUL FENWICK WASN'T LIKELY TO BE ACTIVE IN CREDIT MR CHEEK THEN AS PAUL FENWICK ASKED A CREDIT BUREAU TO SHOW HIM HIS CREDIT HISTORY USING DETAILS FROM THESE FORMS HE APPLIED FOR CREDIT UNDER THE ALIAS AND SOON SECURED A CREDIT CARD THAT KEPT HIM GOING FINANCIALLY HE ALSO GOT A DRIVER'S LICENSE AS TO HIS COMPLETE NEW PAPERWORK AND CREDIT HISTORY YOU CAN DO THIS SHAMEFULLY EASILY IN THIS COUNTRY SAYS MR CHEEK AUTHORITIES CONFIRMED HE USED PAUL FENWICK'S IDENTITY TO OBTAIN CREDIT AND THAT HE POSSESSED SEVERAL TEXTS ON HOW TO FALSIFY IDENTIFICATION THEY SAY THEY DON'T KNOW HOW HE ACTUALLY FALSIFIED ANY IDS IN HIS NEW MOUNTAIN HOME MR CHEEK INITIALLY KEPT TO HIMSELF WHILING AWAY HIS TIME WRITING HIS MEMOIRS AND GROWING THE FULL BEARD THAT ALTERED HIS APPEARANCE HE BRIEFLY TRIED DYEING HIS HAIR BUT IT TURNED BLOND AND ORANGE FOR A WHILE HE COVERED UP THE ODD HAIR WITH A BASEBALL CAP AS HE GAINED CONFIDENCE MR CHEEK BECAME WELLKNOWN IN CHERRY LOG AND THE NEARBY TOWNS OF EAST ELLIJAY AND JASPER GA HE EVEN PROSPERED IN THE LOGHOME CONSTRUCTION BUSINESS AS A PARTNER WITH A LOCAL COUPLE BUT HE ALSO MET LOUISE LEE THEN AN OWNER OF ANOTHER LOGHOME BUSINESS AND THIS CONTRIBUTED TO HIS UNDOING THEY DATED AND HE DID BUSINESSCONSULTING WORK FOR HER COMPANY MANAGING ITS FINANCES SECURING LOANS AND SHE CONTENDS EMBEZZLING SOME 37000 HE DENIES THIS AND CLAIMS SHE OWES HIM MONEY LAST NOVEMBER SHE WENT TO LOCAL AUTHORITIES WHO ULTIMATELY INFORMED GEORGIA AND FEDERAL INVESTIGATORS ABOUT THE FINANCIAL DISPUTE NOT THAT THE FBI IMMEDIATELY REALIZED THAT PAUL FENWICK WAS THE VANISHED MALCOLM CHEEK ON FEB 16 AN FBI AGENT FROM ATLANTA ARRIVED AT HIS LOGHOME OFFICE APPARENTLY BELIEVING THE BEARDED PAUL FENWICK MIGHT BE ANOTHER FUGITIVE INVOLVED IN A COLORADO SCAM MR CHEEK WAS HORRIFIED WHEN THE AGENT IDENTIFIED HIMSELF BUT THEN WAS RELIEVED TO HEAR THAT HE WAS LOOKING FOR A DIFFERENT MAN UNSETTLED BY THAT VISIT HOWEVER MR CHEEK RELOCATED TO GEORGETOWN SC BUT BY THEN THE FBI WAS CLOSING IN AND ON APRIL 2 MR GULLEY ARRESTED HIM THERE NOW CLEANSHAVEN AND DOWNRIGHT CHATTY ABOUT HIS LIFE AS A FUGITIVE MR CHEEK SAYS HIS IMMEDIATE PLANS INCLUDE FINISHING HIS AUTOBIOGRAPHY HE MAY HAVE A LOT OF TIME TO FINISH THE BOOK IF CONVICTED HE FACES A SENTENCE OF UP TO 220 YEARS IN PRISON 9404270154 940427 WHO'S NEWS NETWORK GENERAL CORP NETWORK GENERAL CORP MENLO PARK CALIF CHARLES J ABBE 53 YEARS OLD SENIOR VICE PRESIDENT FOR ELECTRONICS AT RAYCHEM CORP WAS ELECTED A DIRECTOR OF THIS SOFTWARE COMPANY EXPANDING BOARD MEMBERSHIP TO SEVEN 9404270153 940427 CORPORATE FOCUS INTEL IS EMBARKING ON BIG CAMPAIGN TO BUOY PENTIUM CHIP MAKER PLANS 150 MILLION MARKETING EFFORT AS ANALYSTS CITE WEAK SALES BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL WITH INITIAL SALES OF INTEL CORP'S PENTIUM MICROPROCESSOR LINE DISAPPOINTING SOME MARKET WATCHERS THE CHIP GIANT PLANS TO BOOST THE PRODUCT WITH THE MOST AMBITIOUS MARKETING CAMPAIGN IN THE COMPANY'S HISTORY THE HIGHPROFILE PENTIUM PROCESSOR IS THE LINCHPIN OF INTEL'S STRATEGY TO MAINTAIN ITS EXTRAORDINARILY PROFITABLE CONTROL OVER THE CHIPS THAT POWER PERSONAL COMPUTERS INTEL'S PLAN IS TO SPEND 150 MILLION ON MARKETING TO MOVE A MAJOR CHUNK OF THE PC MARKET TO THE PROPRIETARY PENTIUM TECHNOLOGY BY THE END OF THE YEAR IT HAS SET A TARGET OF SELLING SIX TO SEVEN MILLION PENTIUM CHIPS THIS YEAR BASED ON THE SIGNS SO FAR HITTING THAT TARGET WILL BE ANYTHING BUT A SLAM DUNK ANALYST ESTIMATES OF PENTIUM SHIPMENTS TO DATE RANGE AS LOW AS 500000 TO 600000 SHIPPED SINCE THE CHIP WAS INTRODUCED IN THE SPRING OF 1993 PC BUYERS HAVE APPARENTLY BEEN WAITING FOR NEW MODELS AND LOWER PRICES WHILE A SHORTAGE OF KEY PARTS HAS SLOWED THE DELIVERY OF SOME SYSTEMS TO THE MARKETPLACE ERIK JANSEN AN ANALYST AT ALEX BROWN & SONS INC BELIEVES THAT TECHNICAL PROBLEMS WILL HURT INTEL FURTHER IN THE SECOND QUARTER AND PREDICTS THAT INTEL WILL SELL JUST 35 MILLION UNITS ALL YEAR MERRILL LYNCH ANALYST THOMAS KURLAK YESTERDAY CUT HIS ESTIMATE OF FIRSTQUARTER PENTIUM SALES TO 300000 FROM 400000 AND PREDICTS 1994 SHIPMENTS WON'T TOP FOUR MILLION IT'S VERY CLEAR TO ME THAT PENTIUM IS NOT RAMPING AS FAST AS INTEL WANTS IT TO IT'S JUST NOT MR JANSEN SAYS NONSENSE SAYS PAUL OTELLINI SENIOR VICE PRESIDENT IN CHARGE OF INTEL'S MICROPROCESSOR PRODUCTS GROUP HE WON'T DISCLOSE A PRECISE NUMBER OF PENTIUM SHIPMENTS BUT SAYS 600000 IS TOO LOW THE STARS ARE ALL LINING UP FOR A VERY STRONG SECONDHALF SELLING SEASON FOR PENTIUM MR OTELLINI SAYS INDUSTRY EXECUTIVES AND ANALYSTS ARE DIVIDED ABOUT HOW PENTIUM HAS BEEN RECEIVED THE CAUSES FOR IT AND WHETHER INTEL CAN TURN THE MARKET AROUND QUICKLY SOME THINK MR OTELLINI CAN POST THE BIG SALES INCREASES HE PROMISES IT DOESN'T TAKE A LEAP OF FAITH TO GET THERE SAYS THOMAS THORNHILL AN ANALYST WITH MONTGOMERY SECURITIES KIMBALL BROWN AN ANALYST AT THE MARKET RESEARCH FIRM DATAQUEST INC ADDS THE RAMP THAT IS COMING IS GOING TO BE ASTOUNDING IT BETTER BE INTEL FACES MUCH STIFFER COMPETITION ON SALES OF CLONES OF ITS EARLIER 486 CHIP BESIDES LONGTIME NEMESIS ADVANCED MICRO DEVICES INC A THREATENING ALLIANCE OF UPSTART CYRIX CORP AND INTERNATIONAL BUSINESS MACHINES CORP IS ALREADY SELLING 486 CLONES AND HAS PLANS TO JOINTLY SELL A PENTIUM EQUIVALENT LATER MEANWHILE IBM MOTOROLA INC AND APPLE COMPUTER INC ARE SPENDING HEAVILY TO PROMOTE THE POWERPC CHIP AS THE HEART OF A NEW GENERATION OF PCS AND SOME ANALYSTS THINK POWERPC HAS LONGTERM ADVANTAGES IN PRICE AND PERFORMANCE INTEL'S EXTRAORDINARY GROSS PROFIT MARGINS HAVE BEEN FALLING LATELY IN LARGE PART BECAUSE IT IS SELLING MORE CIRCUIT BOARDS MEMORY CHIPS AND OTHER LESSPROFITABLE PRODUCTS BUT MR JANSEN AND SOME OTHERS SAY THE TREND CAN ONLY INCREASE AS INTEL BEGINS CUTTING PRICES TO RETAIN ITS 486 MARKET SHARE AND TO PROMOTE PENTIUM PRICE PERFORMANCE AND PROMOTION ARE THE COMPANY'S BIG WEAPONS SOME PENTIUM SYSTEMS ARE ALREADY SELLING FOR LESS THAN 3000 AND WILL BE CLOSE TO 2000 BY THE END OF THE YEAR AS INTEL BOOSTS PRODUCTION SHARPLY AND LOWERS ITS PRICES INTEL ALSO STEPPED UP THE ANNOUNCEMENT TO MARCH FROM MAY OF FASTER PENTIUM VERSIONS WHICH OPERATE AT 90 AND 100 MEGAHERTZ AS THOSE SYSTEMS BECOME AVAILABLE INTEL PLANS TO TRIGGER A FLOOD OF ADVERTISING TO MAKE PENTIUM A HOUSEHOLD WORD COMPUTER MAKERS THAT ADVERTISE WITH THE INTEL INSIDE LOGO ALREADY CAN GET INTEL TO PAY HALF THE COST OF THEIR ADVERTISING UNDER CERTAIN CIRCUMSTANCES ACCORDING TO AN INTEL NEWSLETTER THAT GOES TO COMPUTER MAKERS INTEL IS NOW SWEETENING THE AD DEAL BY PUTTING ASIDE 50 FROM THE 995 COST OF EACH 90 MEGAHERTZ CHIP PURCHASED THROUGH JULY 2 THE MONEY THAT PC MAKERS ACCRUE CAN GO TO PAY AS MUCH AS 100 OF THE COST OF ADS THAT EXCLUSIVELY FEATURE PENTIUM MACHINES AND RUN BETWEEN AUG 15 AND DEC 31 WE STRONGLY BELIEVE THAT ADVERTISING SELLS PRODUCTS SAYS DENNIS CARTER INTEL'S VICE PRESIDENT OF CORPORATE MARKETING INTEL ALSO IS OFFERING NEW EDUCATIONAL KITS TO TEACH SCHOOLCHILDREN ABOUT MICROPROCESSOR TECHNOLOGY AND SPONSORED THE PRODUCTION OF A 40MINUTE MOVIE ON THE TOPIC THAT BEGINS SHOWING THIS SUMMER IN THEATERS THAT CAN RUN THE BIGSCREEN IMAX FORMAT IT'S ABOUT A CHILD WHO FALLS ASLEEP AND DREAMS ABOUT FLYING THROUGH A PENTIUM PROCESSOR MR CARTER SAYS BUT THE COMPANY'S SUCCESSFUL EFFORT TO BUILD AWARENESS OF ITS NAME HAS RANKLED SOME COMPUTER MAKERS COMPAQ COMPUTER CORP WHICH IS NOW BUYING CHIPS FROM ADVANCED MICRO DEVICES AS WELL AS INTEL RECENTLY DECIDED TO STOP USING THE INTEL INSIDE LOGO ON ITS COMPUTERS AND PACKAGING THOUGH IT IS STILL TAKING PART IN THE AD CAMPAIGN JOHN ROSE SENIOR VICE PRESIDENT IN CHARGE OF COMPAQ'S DESKTOP PC DIVISION SAYS IT DOESN'T WANT CUSTOMERS TO LOSE TRACK OF THE COMPAQ NAME FROM THE ANALYSIS THAT WE HAVE DONE THE SINGLEBRANDED STRATEGY IS MUCH MORE EFFECTIVE THAN A DOUBLEBRANDED STRATEGY MR ROSE SAYS INTEL'S MARKETING BLITZ MAY HAVE HAD OTHER UNINTENDED EFFECTS MICRONICS COMPUTERS INC A MAKER OF COMPUTER CIRCUIT BOARDS IN FREMONT CALIF THIS WEEK BLAMED A 89 PLUNGE IN FIRSTQUARTER EARNINGS IN PART ON CONSUMER CONFUSION ABOUT WHETHER TO BUY EXISTING 486 OR PENTIUM MACHINES OR TO WAIT FOR THE NEW 90MEGAHERTZ SYSTEM CUSTOMERS ARE FREEZING UP SAYS ROBERT GUNN THE COMPANY'S MARKETING VICE PRESIDENT SOME OBSERVERS QUESTION WHETHER MOST CUSTOMERS NEED OR WANT SO MUCH COMPUTING SPEED IT'S MORE POWER THAN ANYBODY NEEDS CONTENDS DAVID GOLDSTEIN PRESIDENT OF CHANNEL MARKETING CORP A RESEARCH FIRM IN DALLAS INTEL HAS COMPOUNDED CONSUMERS' CHOICES BY HEAVILY PROMOTING THE USE OF PENTIUM WITH A MORE POWERFUL DESIGN FOR PC SYSTEMS CALLED PCI CHIP MAKERS HAVE BEEN SLOW TO INTRODUCE SETS OF CHIPS NEEDED TO BUILD PCI COMPUTERS AND SOME ACCESSORY CIRCUIT BOARDS NEEDED TO FULLY EXPLOIT THE TECHNOLOGY AREN'T AVAILABLE CONTENDS MR JANSEN THE ANALYST OPTI COMPUTER INC A SANTA CLARA CALIF COMPANY THAT BEGAN SELLING A PCI CHIP SET IN MARCH HAS ONLY SOLD ABOUT 100000 CHIP SETS FOR PENTIUM IN THE PAST SIX MONTHS SAYS RAY FARNHAM ITS PRESIDENT INTEL HAS SUPPLIED THE VAST MAJORITY OF PENTIUM CHIP SETS SO FAR VANSTAR INC A MAJOR PC RESELLER IN PLEASANTON CALIF SAYS PENTIUM MACHINES CURRENTLY ACCOUNT FOR ONLY ABOUT 6 OF ITS PC SALES BUT AHMAD MANSHOURI A VANSTAR SENIOR VICE PRESIDENT SAYS SALES ARE INCREASING AT A RAPID RATE GATEWAY 2000 INC A BIG PC MAKER IN NORTH SIOUX CITY IOWA SAYS ABOUT 25 OF ITS DESKTOP SYSTEMS ARE PENTIUMBASED A SPOKESWOMAN FOR DELL COMPUTER CORP CITED A SIMILAR PERCENTAGE MR OTELLINI SAYS THAT THE TECHICAL OBSTACLES TO BUILDING PENTIUMBASED SYSTEMS ARE LARGELY GONE ALL THAT REMAINS IS FOR INTEL TO BOOST PRODUCTION ALLOWING CHIP AND SYSTEM PRICES TO FALL THE PRIMARY ISSUE IS NOT CHIPSET AVAILABILITY BUT PRICING AGREES RAJ JASWA OPTI'S VICE PRESIDENT OF MARKETING IN ORDER FOR THE PENTIUM TO MOVE TO THE MAINSTREAM THE PRICE HAS TO BE SIGNIFICANTLY LOWER 9404270152 940427 WORTHINGTON SETS JOINT VENTURE COLUMBUS OHIO WORTHINGTON INDUSTRIES INC AND MEXICO'S HYLSA SA DE CV SAID THEY WOULD FORM A JOINT VENTURE TO BUILD AND OPERATE A STEELPROCESSING PLANT IN MONTERREY NUEVO LEON MEXICO TERMS OF THE AGREEMENT TO BE FINALIZED IN THE NEXT 30 DAYS WEREN'T DISCLOSED A SPOKESMAN FOR WORTHINGTON SAID THE COMPANIES WOULD INVEST ON A 5050 BASIS IN CAPITAL FUNDING FOR THE PLANT WHICH IS EXPECTED TO HAVE AN INITIAL ANNUAL PRODUCTION CAPACITY OF ABOUT 240000 NET TONS 9404270151 940427 WORLD MARKETS TOKYO SHARES FALL AMID WARINESS ON POLITICS STOCKS POST SHARP GAINS IN LONDON FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO EQUITIES SLIPPED IN QUIET TRADING TUESDAY AS INVESTORS REACTED CALMLY TO A JAPANESE POLITICAL PARTY'S QUITTING THE GOVERNING COALITION YET WERE WARY ABOUT ITS INSTABILITY BUT LONDON STOCKS POSTED SHARP GAINS UNDERPINNED BY FIRM BOND AND FUTURES MARKETS AND FRANKFURT PRICES JUMPED 2 AS INVESTORS WERE ENCOURAGED BY POSITIVE CORPORATE AND ECONOMIC NEWS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11408 UP 037 REFLECTING HIGHER EUROPEAN MARKETS AND LOWER AMERICAN AND ASIA/PACIFIC MARKETS TOBACCO STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 7907 UP 260 OR 34 WITH AMERICAN BRANDS OF THE US POSTING AN 87 GAIN IN ITS LOCAL CURRENCY PLANTATIONS STOCKS TRAILED AT 21150 DOWN 426 OR 2 WITH GOLDEN HOPE PLANTATIONS OF MALAYSIA SLIDING 53 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH TUMBLED 25525 POINTS MONDAY FELL 8021 TO 1962893 AFTER MOVING WITHIN A TIGHT RANGE OF 20564 POINTS IN TRADING WEDNESDAY THE NIKKEI INDEX ROSE 390 POINTS TO CLOSE THE MORNING SESSION AT 1963283 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 240 MILLION SHARES LITTLE CHANGED FROM 244 MILLION SHARES A DAY EARLIER LOSERS OVERWHELMED GAINERS 707258 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH DROPPED 1137 POINTS MONDAY LOST 651 TO 159792 THE PREDAWN DECISION BY THE SOCIALISTS TO WITHDRAW FROM NEW PRIME MINISTER TSUTOMU HATA'S COALITION GOVERNMENT GAVE INVESTORS ANOTHER REASON TO SIT ON THEIR HANDS AHEAD OF THE FRIDAY START OF JAPANESE HOLIDAYS THOUGH THE SOCIALISTS' ACTION DELAYED MR HATA'S SELECTION OF A NEW CABINET THE PARTY'S PLEDGE TO COOPERATE WITH THE MINORITY COALITION IN PASSING THE BUDGET FOR THE CURRENT FISCAL YEAR REMOVED A MAJOR WORRY FROM THE MARKET STILL THE GOVERNMENT'S ABILITY TO MANAGE ECONOMIC POLICY FOR THE LONGER TERM WAS IN DOUBT TRADING INTEREST WAS STIFLED FURTHER BY THE JAPANESE YEN'S STRENGTH IN CURRENCY DEALINGS AND BY FEARS OF HIGHER US INTEREST RATES THE MARKET DID GET SOME SUPPORT FROM MONDAY'S RALLY ON WALL STREET AND RETREAT OF LONGTERM US RATES IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX CLIMBED 192 POINTS TO 31253 AFTER CHALKING UP AN INTRADAY HIGH OF 31377 THE FT 30STOCK INDEX GAINED 145 POINTS TO 24924 VOLUME WAS 7536 MILLION SHARES COMPARED WITH 5223 MILLION SHARES A DAY EARLIER THE BOURSE FOUND SUPPORT FROM FIRM BRITISH GOVERNMENTBOND AND FUTURES DEALINGS BUT PRICES CAME DOWN FROM HIGHS PARTLY BECAUSE OF EARLY WEAKNESS YESTERDAY ON WALL STREET FOLLOWING PARTICULARLY STRONG US CONSUMERCONFIDENCE DATA FOR APRIL WHICH STIRRED FEARS OF A FURTHER US MONETARY TIGHTENING REACTION WAS MIXED TO A REPORT OF ROBUST BRITISH MANUFACTURING OUTPUT IN THE FIRST QUARTER IN FRANKFURT THE DAX 30STOCK INDEX RALLIED 4098 POINTS TO 224320 OPTIMISM WAS SPURRED BY SIX BIG GERMAN ECONOMIC THINK TANKS' PREDICTION THAT THE ECONOMY WILL GROW 15 THIS YEAR AFTER CONTRACTING 12 LAST YEAR AND BY DATA SHOWING GERMAN MONEYSUPPLY GROWTH IN MARCH THAT WASN'T AS BIG AS FEARED STOCKS ALSO WERE BUOYED BY STRONGER GERMAN GOVERNMENT BOND AND DAX FUTURES TRADING IN PARIS EQUITIES ROSE SOLIDLY PARTLY ON FALLING YIELDS FOR SOME FRENCH BONDS IN AMSTERDAM SHARES MOVED BROADLY HIGHER LIFTED BY A BOND MARKET RALLY AND STRENGTH ON OTHER EUROPEAN BOURSES AS WELL AS MONDAY'S SURGE ON WALL STREET IN MILAN AFTER A MONDAY HOLIDAY IN ITALY SHARES INCLUDING THOSE TRADED ELECTRONICALLY SKYROCKETED 33 IN ACTIVE DEALINGS ON EXPECTATIONS THAT NEW GOVERNMENT LEADERS WOULD BE SELECTED SOON IN MADRID STOCKS GAINED ON IMPROVED SENTIMENT LINKED TO A BANKING SECTOR MERGER MONDAY'S WALL STREET ADVANCE AND A SPANISH BOND MARKET RECOVERY IN STOCKHOLM PRICES ROSE ON DECLINING SWEDISH LENDING RATES AND STRONG PERFORMANCES IN MAJOR MARKETS ABROAD IN ZURICH STOCKS CLIMBED BUOYED BY NEW YORK STOCKS' GOOD SHOWING MONDAY AND BY AN IMPROVEMENT IN SWISS BOND PRICES IN BRUSSELS EQUITIES ROSE AMID SLIGHTLY LOWER LONGTERM INTEREST RATES IN MEXICO CITY STOCKS SHOT UP 43 AS FEARS OF A NEW PESO CURRENCY DEVALUATION EVAPORATED WHEN THE US CANADA AND MEXICO UNVEILED AN 88 BILLION COMBINED CURRENCYSWAP FACILITY OSTENSIBLY FOR USE BY ANY OF THE THREE NATIONS BUT CLEARLY AIMED AT HELPING TO UNDERPIN THE MEXICAN CURRENCY IN SYDNEY SHARES RALLIED 13 FOLLOWING THE PREVIOUS DAY'S SURGE ON WALL STREET THE MARKET ALSO WAS BOOSTED BY AN IMPROVED SHORTTERM OUTLOOK FOR CRUDE OIL PRICES IN HONG KONG STOCKS JUMPED 21 LIFTED BY SOME BARGAINHUNTING AND NEW BUYING FROM OVERSEAS FOREIGN INSTITUTIONS ABSENT IN RECENT DAYS WERE BUYERS AND PURCHASES ALSO BOOSTED THE RECENTLY SAGGING PROPERTY SECTOR IN SINGAPORE EQUITIES ENDED HIGHER AFTER A STEADY RISE SIGNALED GROWING CONFIDENCE IN THE BOURSE IN KUALA LUMPUR PRICES DROPPED IN LIGHT DEALINGS AS PARTICIPANTS ESPECIALLY FOREIGN INVESTORS LOCKED IN PROFITS AFTER MONDAY'S 2 CLIMB IN SEOUL THE MARKET DROPPED DISCOURAGED BY BEARISHNESS ABOUT BIG BLUE CHIPS PRICES OPENED SLIGHTLY HIGHER BUT GAVE WAY BECAUSE OF FUNDAMENTALS THAT DIDN'T SHOW ANY SIGN OF IMPROVEMENT FOR THE BOURSE IN MANILA SHARES GAINED 1 IN HEAVY VOLUME TAKING A CUE FROM WALL STREET'S MONDAY ADVANCE AND FROM STRENGTH IN THE PHILIPPINE TELECOMMUNICATIONS AND UTILITY SECTORS BUYING FOCUSED ON ISSUES THAT WOULD BENEFIT FROM AN ECONOMIC RECOVERY IN TAIPEI STOCKS FELL 11 AFTER VOLATILE DEALINGS TWO STRONG GAINS WERE KNOCKED DOWN BY PROFITTAKING FOLLOWING THE RECENT BULL RUN IN WELLINGTON PRICES ADVANCED 18 ON STRENGTH IN THE US AND SYDNEY MARKETS AND ON FALLING NEW ZEALAND INTEREST RATES AMONG CORPORATE DEVELOPMENTS IN LONDON TARMAC SANK 8 PENCE OR 43 TO 179 PENCE 267 ON PROFITTAKING DESPITE A BETTERTHANEXPECTED EARNINGS REPORT THE CONSTRUCTION GROUP'S 1993 PRETAX LOSS INCLUDING SPECIAL ITEMS NARROWED TO 431 MILLION 642 MILLION FROM 3503 MILLION A YEAR EARLIER SEARS PLC PLUMMETED 825 PENCE OR 63 TO 1235 PENCE ALSO ON PROFITTAKING THE RETAILER POSTED PRETAX PROFIT FOR THE YEAR ENDED JAN 31 OF 1383 MILLION COMPARED WITH A YEAREARLIER PRETAX LOSS OF 478 MILLION SEARS UNRELATED TO A SIMILARLY NAMED US CONCERN DECLARED CONFIDENCE IN ITS FUTURE PROSPECTS AND BOOSTED ITS ANNUAL DIVIDEND 51 TO 368 PENCE A SHARE BUT SOME INVESTORS HAD HOPED FOR A MORE GENEROUS INCREASE IN FRANKFURT HOECHST SOARED 113 MARKS OR 34 TO 34650 MARKS 20606 THE CHEMICAL COMPANY'S GROUP PRETAX PROFIT FOR THE FIRST THREE MONTHS CLIMBED 16 TO 506 MILLION MARKS 3009 MILLION US DEMAND WAS ESPECIALLY STRONG IN MADRID BANCO ESPANOL DE CREDITO SKYROCKETED 113 PESETAS OR 15 TO 868 PESETAS 633 ON NEWS THAT THE COMMERCIAL BANK KNOWN AS BANESTO WILL BE ACQUIRED BY BANCO SANTANDER AND THAT MOST OF ITS NONFINANCIAL ASSETS WILL BE SOLD SANTANDER SHARES PLUNGED 440 OR 72 TO 5710 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 9404270150 940427 TECHNOLOGY APPLE COMPUTER PRICE CUT CUPERTINO CALIF APPLE COMPUTER INC SAID IT CUT THE SALES PRICE OF ITS MACINTOSH QUADRA 605 PERSONAL COMPUTER BY 16 APPLE SAID THE DISCOUNTED QUADRA WILL SELL FOR 1069 IN AN EFFORT TO LURE BUSINESS CUSTOMERS TO THE LOWEND QUADRA LINE APPLE SAID IT WAS ALSO OFFERING THE PC WITH A PACKAGE OF EIGHT BUSINESS SOFTWARE PROGRAMS FOR 1329 BOTH INCENTIVES ARE PART OF APPLE'S CONTINUING EFFORT TO MAINTAIN SALES OF ITS MACINTOSH QUADRA LINE WHILE THE COMPANY INTRODUCES ITS MORE POWERFUL POWERPCBASED MACINTOSH LINE THE POWER MACS BEGAN SELLING IN MIDMARCH 9404270149 940427 PENTAGON TRAVEL VOUCHERS' HANDLING COST TOPS TRAVEL WASHINGTON THE PENTAGON SPENDS MORE MONEY PROCESSING TRAVEL ORDERS THAN ON TRAVEL ITSELF ACCORDING TO A MEMBER OF THE SENATE ARMED SERVICES COMMITTEE SEN WILLIAM COHEN R MAINE SAID IN A STATEMENT THAT THE PENTAGON IS SPENDING 23 BILLION EACH YEAR PROCESSING 2 BILLION OF TRAVEL VOUCHERS IT TAKES 3900 CLERKS AS LONG AS TWO MONTHS AND COSTS ABOUT 200 TO COMPLETE THE 17 STEPS REQUIRED TO PROCESS EACH OF THE 117 MILLION TRAVEL VOUCHERS ISSUED ANNUALLY BY THE DEFENSE DEPARTMENT HE SAID THE VALUE OF THE VOUCHERS AVERAGES 170 HE ADDED A PENTAGON SPOKESWOMAN SAID I CAN'T TELL YOU WHETHER THOSE NUMBERS ARE RIGHT SHE ADDED THAT THE MILITARY'S WASHINGTON TRAVEL OFFICE WAS CITED LAST MONTH BY VICE PRESIDENT AL GORE FOR ITS EFFORTS TO REDUCE THE COMPLEXITY OF ITS OPERATIONS A SPOKESWOMAN FOR SEN COHEN SAID THE TRAVELOFFICE FIGURES WERE COMPILED BY MR GORE'S NATIONAL PERFORMANCE REVIEW 9404270148 940427 DEMOCRATS CRITICIZE FED FOR RAISING INTEREST RATES WASHINGTON MORE THAN 40 DEMOCRATIC MEMBERS OF THE HOUSE AND SENATE CRITICIZED THE FEDERAL RESERVE FOR RAISING SHORTTERM INTEREST RATES AND ASKED THE FED TO DELAY ANY FURTHER INCREASES UNTIL IT EXPLAINS TO CONGRESS THE BASIS FOR ITS DECISIONS THE ATTACK BY CONGRESSIONAL DEMOCRATS IS IN SHARP CONTRAST TO THE STANCE OF THE CLINTON ADMINISTRATION WHICH HAS AVOIDED ANY PUBLIC CRITICISM OF THE FED THE FED'S PREEMPTIVE STRIKES AGAINST NONEXISTENT INFLATION COULD BE LIKENED TO A PHYSICIAN'S PRESCRIBING ANTIBIOTICS WITHOUT ANY SPECIFIC SIGN OF ILLNESS ON THE GROUNDS THAT THE PATIENT WILL DOUBTLESS DEVELOP AN INFECTION AT SOME TIME IN THE FUTURE THE LAWMAKERS SAID IN A LETTER TO FED CHAIRMAN ALAN GREENSPAN THEY CHARGED THAT THE FED'S ACTIONS HAVE DRIVEN UP LONGTERM RATES DESTABILIZED FINANCIAL MARKETS AND PUT THE ECONOMIC RECOVERY AT RISK SEVERAL OF THOSE WHO SIGNED THE LETTER INCLUDING SEN BYRON DORGAN D ND WANT TO ALTER THE WAY THE FED'S REGIONAL BANK PRESIDENTS ARE PICKED DISPLAYING PHOTOS OF THE 17 CURRENT MEMBERS OF THE FED'S POLICY COMMITTEE SEN DORGAN TOOK TO THE SENATE FLOOR YESTERDAY TO COMPLAIN THAT THE FED IS UNACCOUNTABLE MR GREENSPAN ISN'T CURRENTLY SCHEDULED TO APPEAR BEFORE ANY CONGRESSIONAL COMMITTEES 9404270147 940427 YOUR MONEY MATTERS START SLASHING YOUR CREDITCARD COSTS TO AVOID STING OF RISING INTEREST RATES BY DEBORAH LOHSE STAFF REPORTER OF THE WALL STREET JOURNAL RISING INTEREST RATES MAKE THE CASE FOR PAYING OFF YOUR CREDITCARD DEBT MORE COMPELLING THAN EVER BUT IF YOU'RE HOPELESSLY ADDICTED TO CREDIT THE LEAST YOU CAN DO IS START SLASHING THE COST OF YOUR PLASTIC BECAUSE THE INTEREST CHARGED ON MORE THAN HALF OF THE CREDIT CARDS NOW IN USE VARIES WITH MARKET INTEREST RATES SOME 177 MILLION CARDHOLDERS FACE THE PROSPECT OF PAYING HIGHER RATES IN THE MONTHS AHEAD SAYS ROBERT MCKINLEY PRESIDENT OF RAM RESEARCH CORP A FREDERICK MD COMPANY THAT TRACKS THE BANKCARD INDUSTRY FOR MANY HE SAYS THE INCREASE WILL COME WITH THEIR MAY STATEMENTS CARDHOLDERS WITH THE WHEREWITHAL DO SO CAN AVOID THE INCREASE BY PAYING OFF THEIR OUTSTANDING BALANCES IN FULL THAT'S A SMART MOVE ANYWAY FINANCIAL ADVISERS SAY BECAUSE WHAT YOU SAVE ON INTEREST IS APT TO BE A LOT MORE THAN YOU COULD EARN ON AN INVESTMENT SOMEONE IN THE 31 TAX BRACKET FOR INSTANCE WOULD HAVE TO EARN NEARLY 16 TO OFFSET THE COST OF PAYING 11 ON A CREDITCARD BALANCE PAYING OFF THE DEBT REPRESENTS AN IMMEDIATE RISKFREE 11 RETURN SAYS KAYCEE KRYSTY EXECUTIVE DIRECTOR OF PERSONAL FINANCE NETWORK A DIVISION OF ACCOUNTANTS MOSS ADAMS IN SEATTLE AND THAT RETURN ONLY GETS BETTER AS INTEREST RATES GO UP SO MUCH FOR THOSE WITH MORE MONEY IN THEIR BANK ACCOUNTS THAN THEY KNOW WHAT TO DO WITH WHAT ABOUT THE REST OF US FOR MANY PEOPLE THE PROSPECT OF COMING UP WITH THE THOUSANDS OF DOLLARS IT WOULD TAKE TO WIPE THE DEBT SLATE CLEAN JUST ISN'T FEASIBLE AT LEAST NOT IN THE SHORT TERM BUT MANY OF THESE CREDITCARD HOLDERS CAN DO SEVERAL OTHER THINGS TO PUT THEMSELVES ON THE ROAD TO HEALTHIER FINANCES PART OF IT IS A MATTER OF PERSONAL DISCIPLINE FOCUS ON REDUCING THE NUMBER OF CARDS YOU CARRY CONCENTRATE ON PAYING OFF THE HIGHEST INTERESTRATE CARDS QUICKLY AND VOW NOT TO TAKE ON ANY REVOLVING DEBT WHILE YOU PURSUE A PAYMENT PLAN AND BY ALL MEANS SWITCH TO A LOWRATE CARD IF YOU CARRY AN UNPAID BALANCE FROM MONTH TO MONTH EVEN WITH RISING INTEREST RATES CONSUMERS SHOULD STILL BE ABLE TO FIND CREDIT CARDS WITH INCENTIVE RATES AS LOW AS 69 OR 7 SAYS JAMES DALY EDITOR OF CREDIT CARD NEWS IN CHICAGO THEN TRY TO PAY OFF AS MUCH AS YOU CAN WHILE RATES ARE LOW IF THE INTRODUCTORY RATE LASTS UP TO A YEAR OR SO YOU CAN PUT A SERIOUS DENT IN YOUR DEBT IN THAT TIME SAYS RUTH SUSSWEIN EXECUTIVE DIRECTOR OF BANKCARD HOLDERS OF AMERICA A NONPROFIT CREDITEDUCATION GROUP IN SALEM VA PAY CLOSE ATTENTION TO WHAT THE REGULAR RATE WILL BE ONCE THE SPECIAL RATE EXPIRES MANY OF THE CARDS BEING OFFERED WITH SPECIAL LOW INTRODUCTORY RATES SWITCH TO VARIABLE RATES THAT ARE THREE TO 12 PERCENTAGE POINTS OR MORE ABOVE THE PRIME RATE THE PRIME RATE THE BASE RATE USED BY BANKS IN SETTING MANY INTEREST RATES ON LOANS TO CONSUMERS AND TO SMALL AND MEDIUMSIZE BUSINESSES HAS RISEN IN RECENT MONTHS TO 675 FROM 6 AS A GENERAL RULE ADVISERS SAY IF YOUR CARD'S RATE STARTS CREEPING ABOVE 14 CONSIDER SHOPPING FOR A NEW ONE MAKE SURE THAT ANY BALANCES YOU WANT TO TRANSFER WILL FULLY BENEFIT FROM THE RATE ON THE CARD YOU PICK SOME CARD ISSUERS FOR EXAMPLE WILL APPLY THEIR SPECIAL TEASER RATES ONLY TO NEW PURCHASES TRANSFERRED BALANCES ARE CHARGED AT CASHADVANCE RATES WHICH TYPICALLY ARE HIGHER THAN RATES ON PURCHASES SUMS TREATED AS CASH ADVANCES ALSO MAY NOT GET AN INTERESTFREE GRACE PERIOD ON THE OTHER HAND SOMETIMES YOUR TRANSFERRED BALANCE GETS THE ROYAL TREATMENT SOME EXISTING CUSTOMERS OF BANK OF NEW YORK DELAWARE FOR EXAMPLE CAN TRANSFER SUMS TO ITS CONSUMERS EDGE CREDIT CARD AND PAY 69 INSTEAD OF THE NORMAL 1265 TO 1565 WHEN YOU USE YOUR NEW CARD WATCH OUT FOR INTERESTPADDING PAYMENT OPTIONS THAT HAVE THE POTENTIAL TO WREAK HAVOC ON THE CREDIT DIET OF THE WEAKWILLED FOR INSTANCE SEVEN OF THE TOP 10 CREDITCARD ISSUERS REQUIRE MINIMUM PAYMENTS OF LESS THAN 3 OF THE MONTHLY BALANCE OTHER ISSUERS ALLOW CUSTOMERS TO SKIP A PAYMENT IF THEY PAID MORE THAN THE MINIMUM IN PREVIOUS MONTHS BUT LONG TERM SUCH FLEXIBILITY CAN BE COSTLY IF YOU CARRY A BALANCE YOU ARE BEING CHARGED INTEREST WHETHER YOU PAY THE MINIMUM OR NOT SAYS MS SUSSWEIN OF BANKCARD HOLDERS OF AMERICA ADVISERS STRONGLY RECOMMEND THAT THOSE TRYING TO CUT THEIR INTERESTRATE COSTS PAY AS MUCH AS THEY CAN AFFORD EACH MONTH PREFERABLY FAR MORE THAN THE ISSUER'S STATED MINIMUM A LOT OF THE RECENT CREDITCARD PROMOTIONS HAVE BEEN FOR CARDS THAT HAVE A TIEIN TO FREQUENTFLIER OR REBATE PROGRAMS THE PITCH IS THAT BY USING THE CARD TO MAKE YOUR USUAL CHARGES YOU'LL EARN CREDIT TOWARD EVERYTHING FROM FREE AIRLINE TICKETS TO DISCOUNTS ON NEW CAR PURCHASES BUT FOR PEOPLE WHO HABITUALLY CARRY HIGH LEVELS OF REVOLVING DEBT THE INTEREST RATES THESE CARDS CARRY FREQUENTLY OBLITERATE THE PERKS BY THE TIME THE CARD HOLDER GETS THE FREE TICKETS OR PRODUCT DEALS HE COULD HAVE PAID THE PRICE AND MORE IN INTEREST CHARGES ADVISERS SAY THOSE WHO WANT TO USE THESE CARDS TO RACK UP GOODIES SHOULD CONSIDER WHAT MR MCKINLEY AND OTHERS CALL THE TWOCARD STRATEGY THAT WAY YOU USE THE INCENTIVE CARD FOR PURCHASES ACCUMULATING CREDITS TOWARD THE DISCOUNTS YOU FANCY BUT IF YOU CAN'T PAY OFF THE BALANCE YOU CAN TRANSFER IT TO A LOWER RATE CARD PERHAPS BY USING CHECKS MANY ISSUERS OFFER FOR THIS PURPOSE ON A MONTHLY BASIS JUST SIPHON OFF THE BALANCE ADVISES MR MCKINLEY FOR THOSE WHO CAN USE SOME HANDHOLDING IN THEIR DEBT DIET BANKCARD HOLDERS OFFERS A 15 SERVICE THAT SPELLS OUT EXACTLY HOW MUCH YOU SHOULD SEND MONTHLY TO EACH OF YOUR CREDIT CARDS TO GET THEM PAID OFF IN THE SHORTEST TIME GIVEN YOUR BUDGET YOU SEND THEM DETAILS ABOUT ALL OF YOUR CARDS OUTSTANDING BALANCES INTEREST RATES MINIMUM REQUIRED PAYMENTS AND THE AMOUNT YOU CAN AFFORD TO SPEND ABOVE THE MINIMUM REQUIREMENTS FOR INFORMATION ON THE DEBT ZAPPER SERVICE WRITE BANKCARD HOLDERS OF AMERICA 524 BRANCH DRIVE SALEM VA 24153 PEOPLE WITH PERPETUAL CREDITCARD BALANCES NEED TO FIND THE LOWESTRATE CARDS THEY CAN THOSE WHO PAY OFF THEIR BILLS EACH MONTH SHOULD LOOK FOR CARDS WITH NO ANNUAL FEE NOTE ALL RATES LISTED ARE VARIABLE 9404270146 940427 WHO'S NEWS RALIN MEDICAL INC RALIN MEDICAL INC BANNOCKBURN ILL JOHN E ROBSON SENIOR ADVISER AT THE INVESTMENT BANKING FIRM OF ROBERTSON STEPHENS & CO WAS NAMED TO THE BOARD OF THIS MEDICALPRODUCTS CONCERN MR ROBSON WAS FORMERLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GD SEARLE & CO MOST RECENTLY HE WAS DEPUTY SECRETARY OF THE TREASURY IN THE BUSH ADMINISTRATION 9404270145 940427 POLITICS & POLICY GLOBAL NEWS CONFERENCE IS PLANNED BY PRESIDENT WASHINGTON RESPONDING TO CHARGES THAT HE IS DISENGAGED FROM FOREIGN POLICY PRESIDENT CLINTON PLANS TO HOLD A 90MINUTE PRIME TIME GLOBAL NEWS CONFERENCE NEXT TUESDAY ON CABLE NEWS NETWORK WHITE HOUSE AIDES HAVE GONE OUT OF THEIR WAY IN RECENT DAYS TO DEMONSTRATE JUST HOW INVOLVED MR CLINTON IS IN FOREIGN POLICY OUTLINING TO REPORTERS THE NUMBER OF MEETINGS AND HOURS HE HAS DEVOTED TO DEALING WITH CRISES IN BOSNIA AND HAITI BUT THEY ARE CLEARLY FRUSTRATED BY THE CONTINUING CRITICISM FROM NEWSPAPER EDITORIALISTS AND TELEVISION COMMENTATORS THE NEWS CONFERENCE WILL BE BROADCAST FROM THE CARTER CENTER IN ATLANTA MR CLINTON WILL BEGIN WITH A SHORT SPEECH ON FOREIGN POLICY AND THEN ANSWER QUESTIONS FROM REPORTERS IN ATLANTA AND BY SATELLITE HOOKUP FROM REPORTERS IN BOSNIA SOUTH KOREA ISRAEL AND SOUTH AFRICA WHEN ASKED HOW THE PRESIDENT WAS PREPARING FOR NEXT WEEK'S EVENT A SENIOR OFFICIAL SAID THERE'S A LOT OF STAFF WORK GOING ON A LOT OF BRIEFING MATERIALS BEING PULLED TOGETHER 9404270144 940427 MARKETING & MEDIA WRITER ACCUSES PLAYBOY OF ELECTRONIC PIRACY' NEW YORK AS THE ISSUE OF ELECTRONIC RIGHTS INCREASINGLY BECOMES A PUBLISHING BATTLEGROUND A WRITER HAS ACCUSED PLAYBOY MAGAZINE OF ELECTRONIC PIRACY IN CONNECTION WITH AN INTERVIEW TRANSFERRED TO A MULTIMEDIA COMPUTER DISK OR CDROM LEE LOCKWOOD WHOSE INTERVIEW WITH FIDEL CASTRO APPEARED IN A 1967 ISSUE OF PLAYBOY FILED A GRIEVANCE WITH THE NATIONAL WRITERS UNION IN NEW YORK SAYING THAT THE MAGAZINE NEVER ASKED PERMISSION FOR AN ELECTRONIC VERSION OF HIS WORK A SPOKESMAN FOR THE WRITERS UNION SAID THAT PLAYBOY SENT MR LOCKWOOD A CHECK FOR 100 WHICH THE WRITER DEEMS INADEQUATE PAYMENT THE CDROM WHICH IS SCHEDULED TO BE SHIPPED LATE NEXT MONTH TO STORES INCLUDES 30 YEARS OF PLAYBOY INTERVIEWS PHILIP MATTERA A GRIEVANCE OFFICER FOR THE WRITERS UNION SAID OTHER WRITERS SIGNED CONTRACTS GIVING PLAYBOY FULL RIGHTS TO THEIR INTERVIEWS BUT THAT MR LOCKWOOD KEPT THE COPYRIGHT THE UNION SAID IT PREFERS TO RESOLVE SUCH DISPUTES OUT OF COURT BUT DOESN'T RULE OUT A LAWSUIT IF SETTLEMENT ISN'T REACHED 9404270143 940427 WHO'S NEWS LORAL CORP LORAL CORP NEW YORK EDWARD BORRAZZO 63YEAROLD PRESIDENT OF LORAL'S LORAL INTERNATIONAL INC SUBSIDIARY PLANS TO RETIRE JULY 31 THE PARENT COMPANY SAID HE WILL BE SUCCEEDED BY JOSEPH M BROWDY 64 VICE PRESIDENT OF DEVELOPMENT AND PRODUCTION PROGRAMS AT THE LORAL ELECTRONIC SYSTEMS DIVISION MR BORRAZZO'S RETIREMENT COMES AFTER 34 YEARS AT LORAL A DEFENSE ELECTRONICS AND SPACE COMMUNICATIONS CONCERN 9404270142 940427 WHITE HOUSE PRESENTS PESTICIDEREFORM BILL WITH LESS RIGID RULES WASHINGTON THE CLINTON ADMINISTRATION UNVEILED ADDITIONAL DETAILS OF ITS PESTICIDEREFORM BILL AMID DOUBTS THAT THE LEGISLATION WILL BE ENACTED THIS YEAR THE BILL WOULD CREATE A LESS RIGID HEALTH STANDARD TO REPLACE THE DELANEY CLAUSE WHICH PROHIBITS THE PRESENCE IN PRACTICALLY ALL PROCESSED FOODS OF EVEN MINUTE TRACES OF PESTICIDE RESIDUES OR OTHER ADDITIVES SHOWN TO INDUCE CANCER IN MAN OR ANIMAL THIS 36YEAROLD STANDARD IS BELIEVED BY THE FOOD INDUSTRY AND MANY ENVIRONMENTAL GROUPS TO BE UNENFORCEABLE BUT THE BILL ALSO WOULD REQUIRE THE ENVIRONMENTAL PROTECTION AGENCY FOR THE FIRST TIME TO INCORPORATE INTO ITS PESTICIDEAPPROVAL PROCESS CONSIDERATION OF HOW A PESTICIDE AFFECTS THE HEALTH OF INFANTS AND CHILDREN IN ADDITION ALL FOODUSE PESTICIDES CURRENTLY ON THE MARKET WOULD HAVE SEVEN YEARS TO RENEW THEIR EPA APPROVAL UNDER THE NEW HEALTH STANDARD THE BILL GIVES NEW DETAILS ABOUT EXCEPTIONS TO A PROPOSED BAN ON US EXPORTS OF PESTICIDES NOT APPROVED FOR USE IN THIS COUNTRY PESTICIDES WHOSE REGISTRATIONS HAVE BEEN REVOKED IN THE US FOR ENVIRONMENTAL REASONS COULD BE EXPORTED AT THE REQUEST OF A FOREIGN COUNTRY IF THE PESTICIDE DIDN'T POSE HEALTH CONCERNS THE CLINTON ADMINISTRATION OUTLINED ITS BILL LAST SEPTEMBER BUT IT TOOK THE EPA THE AGRICULTURE DEPARTMENT AND THE FOOD AND DRUG ADMINISTRATION SEVEN MONTHS TO DRAFT THE LEGISLATION 9404270141 940427 WHO'S NEWS MERCEDESBENZ NAMES KELLY TO POST AT UNIT IN NORTH AMERICA MONTVALE NJ WILLIAM S KELLY 45 YEARS OLD WAS APPOINTED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT OF OPERATIONS FOR MERCEDESBENZ AB'S NORTH AMERICAN SALES UNIT MR KELLY RESIGNED ABRUPTLY A MONTH AGO AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SAAB CARS USA INC WHICH IS JOINTLY OWNED BY SWEDISH AUTO MAKER SAABSCANIA AB AND GENERAL MOTORS CORP AT THE TIME HE INDICATED HE WAS SEEKING OTHER OPPORTUNITIES IN THE AUTO INDUSTRY AT SAAB MR KELLY OVERSAW THE SWEDISH AUTO MAKER'S REORGANIZATION IN THE US AN ENDEAVOR THAT EVENTUALLY RESULTED IN THE REDUCTION OF SAAB'S STAFF BY 44 AND RELOCATION OF ITS HEADQUARTERS TO GEORGIA FROM CONNECTICUT AT MERCEDES MR KELLY WILL BE RESPONSIBLE FOR OVERSEEING THE GERMAN LUXURY CAR COMPANY'S FIELD OPERATIONS IN NORTH AMERICA A RESPONSIBILITY THAT ALSO INCLUDES SUPERVISION OF THE CAR MAKER'S DISTRIBUTION CHANNELS MR KELLY ASSUMES HIS NEW POST NEXT MONTH REPORTING DIRECTLY TO MIKE JACKSON 45 MERCEDES'S EXECUTIVE VICE PRESIDENT FOR SALES AND MARKETING IN NORTH AMERICA A SPOKESMAN FOR MERCEDES A UNIT OF DAIMLERBENZ AG SAID MR JACKSON WILL NOW SPEND MORE TIME DEVELOPING LONGTERM STRATEGIES FOR MERCEDES'S NORTH AMERICAN UNIT 9404270140 940427 WHO'S NEWS OLD AMERICA STORES INC OLD AMERICA STORES INC HOWE TEXAS THE COMPANY SAID ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER C WAYNE BRUSH 54 YEARS OLD TOLD IT THAT HE INTENDS TO STEP DOWN FROM BOTH POSTS WHEN HIS EMPLOYMENT AGREEMENT EXPIRES ON JAN 31 1995 THE HOMEDECORATING AND ARTS AND CRAFTS RETAILER SAID MR BRUSH THE COMPANY'S FOUNDER WILL HELP HIRE AND TRAIN A SUCCESSOR 9404270139 940427 SHORT INTEREST IN NASDAQ STOCKS SHOWS 1 DROP FALL IS FIRST IN 15 MONTHS SNAPPLE TOTAL SLIPS 3 ELECTRONIC ARTS UP 13 BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL FOR THE FIRST TIME IN 15 MONTHS SHORT INTEREST ON THE NASDAQ STOCK MARKET FELL AFTER THE MARKET'S SHARP LATEMARCH CORRECTION A DECLINE IN NASDAQ SHORT INTEREST WASN'T ALL THAT SURPRISING TO SOME ANALYSTS PEOPLE WHO ARE GOING TO SHORT PROBABLY HAVE ALREADY DONE SO SAID WILL LYONS PUBLISHER AND EDITOR OF THE SHORT ON VALUE NEWSLETTER IN ATLANTA THE LAST TIME NASDAQ SHORT INTEREST FELL WAS IN THE PERIOD BETWEEN DECEMBER 1992 AND JANUARY 1993 A SHORT SALE IS A BET THAT A STOCK WILL TUMBLE AN INVESTOR SELLS BORROWED SHARES KNOWING THAT THEY MUST EVENTUALLY BE REPLACED FOR RETURN TO THE LENDER IF THE REPLACEMENT SHARES COST LESS THAN THOSE SOLD EARLIER THE SHORT SELLER MAKES A PROFIT SHORT INTEREST IS THE TOTAL OF SHARES SOLD SHORT AT ANY GIVEN TIME AND NOT YET COVERED SHORT INTEREST ON THE NASDAQ NATIONAL MARKET COMPRISING THE LARGERCAPITALIZATION ISSUES FELL LESS THAN 1 TO 6615 MILLION SHARES FROM 665 MILLION A MONTH EARLIER AMONG THE SMALLCAP STOCKS WHICH MAKE UP A THIRD OF THE NASDAQ MARKET SHORT INTEREST CLIMBED 22 TO 535 MILLION SHARES FROM 523 MILLION A MONTH EARLIER THE NATIONAL MARKET'S SHORTINTEREST RATIO AS OF MIDAPRIL FELL TO 241 FROM 256 A MONTH AGO THE SHORT INTEREST RATIO FOR THE SMALLEST NASDAQ STOCKS ROSE TO 130 FROM 114 THE RATIO THE NUMBER OF TRADING DAYS THAT WOULD BE REQUIRED TO CLOSE OUT THE TOTAL SHORT POSITION THROUGH SHARE PURCHASES IS VIEWED AS A MEASURE OF TRADER SENTIMENT AMONG THE COMPANIES WITH THE LARGEST SHORT INTEREST POSITIONS SNAPPLE BEVERAGE CORP FELL 3 TO 93 MILLION SHARES MOBILE TELECOMMUNICATIONS TECHNOLOGIES CORP FELL LESS THAN 1 TO 8670000 SHARES AND ELECTRONIC ARTS INC JUMPED 13 TO 86 MILLION SHARES THE NASDAQ STOCKS WITH THE LARGEST VOLUME INCREASES IN SHORT INTEREST WERE AUTOTOTE CORP ADOBE SYSTEMS INC AND US ROBOTICS INC THOSE WITH THE LARGEST VOLUME DECREASES WERE GREAT AMERICAN RECREATION INC CENTOCOR INC AND AMERICAN POWER CONVERSION CORP THE FOLLOWING TABLE SHOWS THE NASDAQ ISSUES IN WHICH A SHORT INTEREST POSITION OF AT LEAST 100000 SHARES EXISTED AT MIDAPRIL OR IN WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST 50000 SHARES SINCE MIDMARCH SEE ACCOMPANYING TABLES WSJ APRIL 27 1994 9404270138 940427 WESTERN PUBLISHING AGREEMENT NEW YORK WESTERN PUBLISHING GROUP INC SAID IT REACHED AN AGREEMENT WITH SIERRA ONLINE INC TO PRODUCE INTERACTIVE COMPUTER SOFTWARE FOR CHILDREN WESTERN A LEADING MARKETER OF CHILDREN'S STORYBOOKS GAMES PUZZLES AND OTHER MATERIALS INCLUDING THE GOLDEN AND GOLDEN BOOKS BRANDS SAID THE PLANNED SOFTWARE FOR AGES THREE TO EIGHT WOULD BE MARKETED AS PART OF ITS GOLDEN STEP AHEAD LINE OF EDUCATIONAL PRODUCTS SIERRA ONLINE BELLEVUE WASH MARKETS INTERACTIVE ENTERTAINMENT AND EDUCATION SOFTWARE FOR PERSONAL COMPUTERS CDROM AND OTHER SYSTEMS 9404270137 940427 FOXMEYER BUYS SCRIP CARD DALLAS FOXMEYER CORP SAID IT ACQUIRED SCRIP CARD ENTERPRISES INC A PRESCRIPTIONBENEFITS MANAGEMENT COMPANY BASED IN SALT LAKE CITY THAT CONTRACTS WITH 35000 PHARMACIES IN THE US TERMS WEREN'T DISCLOSED SCRIP CARD MANAGES PRESCRIPTIONBENEFITS PROGRAMS FOR SMALL TO MEDIUMSIZE EMPLOYER GROUPS NATIONWIDE FOXMEYER SAID THE ACQUISITION WILL MORE THAN DOUBLE THE REVENUE GENERATED BY ITS BENEFITSMANAGEMENT OPERATIONS AND HELP ITS RETAILING CUSTOMERS GAIN ACCESS TO MANAGEDCARE PROGRAMS SCRIP CARD'S PRESIDENT AND CHIEF EXECUTIVE OFFICER LARRY R MADSEN 49 YEARS OLD WILL CONTINUE AS PRESIDENT FOXMEYER SAID 9404270136 940427 CREDIT RATINGS S&P RAISES RATINGS ON DEBT OF SAFEWAY KROGER STOP & SHOP NEW YORK STANDARD & POOR'S RATINGS GROUP RAISED ITS DEBT RATINGS ON THREE SUPERMARKET COMPANIES AND REMOVED THEM FROM CREDITWATCH CITING IMPROVED FINANCIAL RESULTS THE RATING ON KROGER CO'S SENIOR SECURED DEBT WAS RAISED TO DOUBLEB FROM DOUBLEBMINUS BY S&P SAYING THE UPGRADE REFLECTS BETTERTHANEXPECTED DEBTSERVICE COVERAGE AND REDUCED INTEREST EXPENSE ABOUT 27 BILLION OF DEBT IS AFFECTED THE RATINGS AGENCY ALSO UPGRADED ABOUT 16 BILLION OF SAFEWAY INC DEBT INCLUDING SENIOR SECURED DEBT TO DOUBLEBPLUS FROM DOUBLE B THE AGENCY SAID IT EXPECTS A CONTINUED REDUCTION OF FINANCIAL RISK AND IMPROVED OPERATING PERFORMANCE ADDITIONALLY THE RATING ON THE SUBORDINATED DEBT OF STOP & SHOP COS WAS RAISED TO DOUBLEBPLUS FROM DOUBLEBMINUS THE MOVE REFLECTS THE COMPANY'S GOOD BUSINESS PROFILE AND MODERATING FINANCIAL RISK S&P SAID ABOUT 250 MILLION OF DEBT IS AFFECTED 9404270135 940427 US ELECTRICAR TO EXPAND PLANTS SEBASTOPOL CALIF US ELECTRICAR INC SAID IT WILL EXPAND PRODUCTION OF ELECTRICPOWERED TRUCKS AT TWO CALIFORNIA PLANTS THE COMPANY SAID IT PLANS TO HIRE 80 EMPLOYEES AND PURCHASE 170 GENERAL MOTORS PICKUP TRUCKS FOR CONVERSION FROM INTERNAL COMBUSTION TO ELECTRIC POWER THE COMPANY SAID IT EXPECTS TO CONVERT 500 GASPOWERED TRUCKS TO ELECTRIC POWER BY YEAR'S END 9404270134 940427 PEPPERAND SALT AROUND US IT WILL SURELY DETOUR BECAUSE THEY HOLLERED IV HAS ME QUITE UPTIGHT JUST GAINED AN APPETITE 9404270133 940427 AMERICAN AIRLINES TO ADD AIRPORT DALLAS AMERICAN AIRLINES SAID IT FILED FOR AUTHORITY TO SERVE A NEW INTERNATIONAL AIRPORT IN OSAKA JAPAN FROM CHICAGO DALLAS/FORT WORTH LOS ANGELES AND NEW YORK AMERICAN A SUBSIDIARY OF AMR CORP ALREADY SERVES TOKYO FROM THREE POINTS IN THE US JAPANESE AND US OFFICIALS WILL MEET SOON TO DECIDE WHICH US CARRIERS MAY SERVE THE NEW AIRPORT IN OSAKA WHEN IT OPENS SEPT 4 9404270132 940427 POLITICS & POLICY CLINTON SCALES BACK PLANS TO OVERHAUL WELFARE AMID ELECTIONYEAR POLITICS COMPLEXITY OF TASK BY RON SUSKIND AND JACKIE CALMES STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON BILL CLINTON'S POLITICALLY POTENT CAMPAIGN PROMISE TO END WELFARE AS WE KNOW IT IS SOUNDING A BIT HOLLOW THESE DAYS NOW THAT MR CLINTON'S WELFAREREFORM PLAN HAS BEEN DRAWN UP AND CIRCULATED TO ADVISERS EVEN SOME ADMINISTRATION OFFICIALS ARE SURPRISED AT HOW MODEST IT IS RATHER THAN A SWEEPING OVERHAUL THE CLINTON PLAN CRITICS ASSERT IS ESSENTIALLY A TINKERING WITH WELFARE AS WE KNOW IT IT WOULD COST 95 BILLION OVER FIVE YEARS ABOUT HALF THE SCOPE AND FUNDING OF A PLAN OFFERED AT A CABINET MEETING JUST A MONTH AGO AND IS WITHOUT MANY PROVISIONS THAT WELFAREREFORM ADVOCATES BOTH LIBERAL AND CONSERVATIVE HAD LONG BEEN HOPING FOR THE PLAN WHICH IS BASED ON A TWOYEAR LIMIT ON BENEFITS IS ESPECIALLY SHY OF PREVENTIVE MEASURES TO STOP THE FLOOD OF YOUNG SINGLE MOTHERS ONTO WELFARE IT PHASES IN SLOWLY INCLUDING ONLY ABOUT 40 OF ALL WELFARE RECIPIENTS BY 1999 WHAT HAPPENED FIRST AND FOREMOST ELECTIONYEAR POLITICS FACING TOUGH CONGRESSIONAL ELECTIONS THIS NOVEMBER MR CLINTON WAS LOATH TO PROPOSE A TAX INCREASE TO FINANCE WELFARE REFORM LAST WEEK HE REJECTED A PLAN TO HIT GAMBLING ESTABLISHMENTS WITH A TAX THAT WOULD HAVE ALLOWED THE WELFARE PROGRAM TO GROW BY 31 BILLION THAT MEANT A KEY PREVENTIVE PROVISION CHILD CARE FOR THE WORKING POOR WOULD BE SHORT OF FUNDING AND HIS ALREADY CUTBACK PLAN WOULD HAVE TO SHRINK ONE MORE TIME ANOTHER PROBLEM SAYS DAVID ELLWOOD AN ANTIPOVERTY EXPERT AND COCHAIRMAN OF THE PRESIDENT'S WELFAREREFORM WORKING GROUP IS THAT NO ONE IS SURE EXACTLY WHAT WORKS IN PREVENTING OUTOFWEDLOCK BIRTHS MR ELLWOOD SAYS THAT IT'S EASY TO FALL INTO TALKING ABOUT CHANGING THIS SYSTEM AS FAST AS WE CAN BUT ANYONE WHO'S SPENT TIME IN THIS AREA KNOWS THAT CHANGING THE CULTURE OF WELFARE IS THE HARDEST THING IMAGINABLE AND THAT WILL TAKE MORE TIME THAN PEOPLE REALIZE STILL MR CLINTON'S PLAN IS ALREADY DRAWING COMPLAINTS FROM CRITICS WHO SAY HE SHOWED TIMIDITY ON AN ISSUE THAT SEEMS TO DEMAND BOLDNESS WELFARE ROLLS HAVE BEEN GROWING SINCE 1989 NOW INCLUDING 136 MILLION PEOPLE AND NEARLY 30 OF ALL CHILDREN IN THE US ARE BORN OUT OF WEDLOCK A PHENOMENON THAT MANY INCLUDING THE PRESIDENT BELIEVE MAY BE ENCOURAGED BY PUBLIC ASSISTANCE WHITE HOUSE OFFICIALS ARGUE THAT SINCE PASSAGE OF WELFARE LEGISLATION THIS YEAR IS HIGHLY UNLIKELY MR CLINTON ISN'T PRECLUDED FROM COMING BACK WITH A BROADER PROPOSAL AND THE REVENUES TO PAY FOR IT NEXT YEAR BUT WILL MARSHALL PRESIDENT OF THE PROGRESSIVE POLICY INSTITUTE A RESEARCH GROUP ASSOCIATED WITH DEMOCRATIC MODERATES FRETS THAT THE TROUBLE WITH AN AUSTERE OPENING BID IS IT DOESN'T ALLOW YOU TO LOSE MUCH IN THE CONGRESSIONAL HORSETRADING TO COME AS WELL THE PRESIDENT'S PLAN RAISES THE PROSPECT THAT REPUBLICANS AND CONSERVATIVE DEMOCRATS COULD ACTUALLY PROPOSE A MORE AMBITIOUS WELFARE OVERHAUL BECAUSE OF THEIR WILLINGNESS TO FINANCE IT BY A CONTROVERSIAL DENIAL OF ALL FEDERAL BENEFITS TO IMMIGRANTS BOTH LEGAL AND ILLEGAL INDEED REP NANCY JOHNSON OF CONNECTICUT A MEMBER OF BOTH THE HOUSE REPUBLICAN TASK FORCE ON WELFARE AND THE HOUSE SUBCOMMITTEE THAT HANDLES THE ISSUE FAULTS MR CLINTON'S DECISION TO CUT BACK ON TWO PROVISIONS SHE CONSIDERS ESSENTIAL TO TRUE WELFARE REFORM EXPANDED CHILDCARE BENEFITS AND EXTENSION OF WELFARE TO TWOPARENT FAMILIES THE PRESIDENT SHE SAYS MUST FIND OTHER WAYS TO FINANCE THOSE STEPS ADMINISTRATION OFFICIALS REALIZE THEY HAVE GIVEN AN OPENING TO THE FORCES OF THE POLITICAL CENTER AND RIGHT SOMETHING A MORE SWEEPING PLAN MIGHT HAVE AVOIDED BUT REPUBLICANS AT LEAST DON'T SEEM IN MUCH SHAPE TO CAPITALIZE GIVEN THEIR OWN DIVISIONS ON THE ISSUE FOR INSTANCE AN ALTERNATIVE THAT IS WIDELY SUPPORTED BY HOUSE REPUBLICANS HAS COME UNDER PUBLIC ATTACK FROM FORMER EDUCATION SECRETARY WILLIAM BENNETT FORMER HOUSING SECRETARY JACK KEMP AND FORMER REP VIN WEBER CODIRECTORS OF THE CONSERVATIVE GROUP EMPOWER AMERICA THEY URGE A MORE RADICAL APPROACH TO REQUIRING WORK AND PENALIZING OUTOFWEDLOCK PREGNANCIES THE OBJECTIVE THEY WROTE IN A LETTER THIS MONTH SHOULD BE SHARPENING POLICY DIFFERENCES WITH MR CLINTON AND THE DEMOCRATS NOT BLURRING THEM WITH TEPID LEGISLATIVE COMPROMISES AS THEY SUGGEST THE HOUSE GOP BILL WOULD DO AT A NEWS CONFERENCE CALLED FOR TOMORROW MR BENNETT WILL JOIN CONSERVATIVE MEMBERS OF THE HOUSE AND SENATE TO INTRODUCE THE REAL WELFARE REFORM ACT OF 1994 WHICH WOULD CUT OFF BENEFITS TO UNMARRIED MOTHERS UNDER 21 AND FORCE 50 OF THE WELFARE CASELOAD INTO A WORK PROGRAM BY 1996 SUCH TOUGH LOVE PRESCRIPTIONS OFFER POLITICAL SALVE AT A TIME OF GROWING FEAR ABOUT THE FATE OF AMERICA'S EXPLODING INNER CITIES THE SAME APPEAL THAT MR CLINTON TAPPED WITH HIS BROAD PLEDGE TO END WELFARE THE PRESIDENT'S PROBLEM THOUGH IS THAT THE LOVE PART OF TOUGH LOVE IS SO COSTLY TRAINING JOB PLACEMENT AND ESPECIALLY CHILD CARE WE HAVE NO MONEY SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN OF NEW YORK CONGRESS'S LEADING WELFARE EXPERT SAYS WHEN HE IS ASKED ABOUT THE NOFRILLS CLINTON PLAN FOR EMPHASIS HE WAVES THE TEXT OF LAST WEEK'S SPEECH BY HOUSE WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI OF ILLINOIS WHICH STRESSED THAT TAX INCREASES WOULD BE NEEDED TO FUND HEALTHCARE REFORM SOME LONGTIME WELFARE REFORMERS WERE RELIEVED TO HEAR OF THE PRESIDENT'S PLAN WITH A LOT OF MEANSPIRITED POLITICS SWIRLING AROUND EXPANSIVE CLAIMS ABOUT ENDING WELFARE AND CHANGING EVERYTHING I THINK MR CLINTON SHOWED ADMIRABLE RESERVE SAYS RICHARD NATHAN CHAIRMAN OF MANPOWER DEMONSTRATION RESEARCH CORP A WELFARERESEARCH GROUP A SWEEPING TOUGH HARDTOFINANCE PLAN IS NOT WHAT WELFARE NEEDS SAYS MR NATHAN WHO HAS BEEN DEALING WITH THE ISSUE SINCE HE HELPED PRESIDENT NIXON FORGE PROPOSALS FOR A GUARANTEED INCOME WE NEED TO MOVE ALONG INCREMENTALLY AND SEE WHAT WORKS WHICH IS WHAT THE PRESIDENT IS DOING BUT MANY OTHER EXPERTS HOPED FOR MORE FROM MR CLINTON WHO AS GOVERNOR OF ARKANSAS SPEARHEADED THE LAST MAJOR EFFORT TO REFORM WELFARE IN 1988 WE MORE OR LESS KNOW HOW TO MOVE PEOPLE OFF OF WELFARE THE PROBLEM IS PREVENTING THEM FROM COMING ONTO THE ROLLS SAYS IRWIN GARFINKEL A COLUMBIA UNIVERSITY PROFESSOR WHO HAS ADVISED MEMBERS OF THE PRESIDENT'S WORKING GROUP BUT HE SAYS THE CLINTON PLAN'S PREVENTIVE MEASURES ESPECIALLY IN WORKINGPOOR CHILD CARE ARE JUST NOT THERE AND THAT IS A BASIC MISTAKE 9404270131 940427 BUSINESS BRIEF TORSTAR CORP HARLEQUIN UNIT TO PURCHASE FRANK SCHAFFER PUBLICATIONS TORSTAR CORP SAID ITS HARLEQUIN ENTERPRISES LTD UNIT AGREED TO PURCHASE FRANK SCHAFFER PUBLICATIONS INC OF TORRANCE CALIF FOR 56 MILLION TORSTAR SAID FRANK SCHAFFER WHICH PRODUCES EDUCATIONAL PRODUCTS FOR CHILDREN HAS ANNUAL REVENUE OF ABOUT 23 MILLION ITS PRODUCTS ARE SOLD BY MAIL ORDER AND THROUGH STORES THAT SUPPLY MATERIALS TO TEACHERS THE COMPANY SAID TORSTAR BASED IN TORONTO SAID THE ACQUISITION IS PART OF ITS ATTEMPT TO BROADEN ITS OPERATIONS BEYOND ITS CORE NEWSPAPER PUBLISHING AND ROMANCE BOOK PUBLISHING ACTIVITIES 9404270130 940427 HUD ACTS TO BOOST ROLE OF PENSION FUNDS IN LOWERCOST RENTALS WASHINGTON THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT UNVEILED A PROGRAM DESIGNED TO STIMULATE PENSIONFUND INVESTMENT IN AFFORDABLE RENTAL HOUSING UNDER THE PROGRAM PENSION FUNDS WOULD MAKE OR PURCHASE LOANS TO FINANCE NEW CONSTRUCTION OR REHABILITATION OF MULTIFAMILY HOUSING PROJECTS AND HUD WOULD PROVIDE SOCALLED SECTION 8 ASSISTANCE TO HELP SEVERAL THOUSAND FAMILIES RENT AS MANY AS 50 OF THE UNITS THE DEPARTMENT WHICH IS MAKING 100 MILLION AVAILABLE FOR ITS SHARE OF THE UNDERTAKING SAID PARTICIPATING PENSION FUNDS WILL BE RESPONSIBLE FOR EVALUATING AND UNDERWRITING PROJECTS THEY INTEND TO FINANCE HUD WILL SPONSOR A NATIONAL COMPETITION TO SELECT PARTICIPANTS AND WILL HOLD A CONFERENCE MAY 11 TO EXPLAIN THE DEMONSTRATION PROJECT TO INTERESTED PARTIES THIS PROGRAM REPRESENTS A NEW WAY OF DOING BUSINESS FOR HUD SAID HUD SECRETARY HENRY CISNEROS 9404270129 940427 ITT WINS ARMY RADIO CONTRACT NEW YORK ITT CORP SAID ITS ITT AEROSPACE/COMMUNICATIONS DIVISION RECEIVED A 127 MILLION ONEYEAR CONTRACT TO PRODUCE MORE THAN 17000 GROUND RADIOS FOR THE US ARMY'S COMMUNICATIONSELECTRONICS COMMAND ITT SAID UNDER VARIOUS CONTRACTS IT HAS PRODUCED ALMOST 65000 STANDARD COMBAT RADIOS FOR THE US AND A NUMBER OF ASIAN EUROPEAN AND MIDDLE EAST COUNTRIES AND ABOUT 47000 ADDITIONAL RADIOS ARE ON ORDER 9404270128 940427 KINDERCARE CHARGED BY NLRB IN DISPUTE OVER LABOR PRACTICES MONTGOMERY ALA THE NATIONAL LABOR RELATIONS BOARD CHARGED KINDERCARE LEARNING CENTERS INC WITH UNFAIR LABOR PRACTICES FOLLOWING A DISPUTE BETWEEN THE COMPANY AND 10 CHILDCARE EMPLOYEES WHO LOST THEIR JOBS IN DECEMBER THE BOARD IS SEEKING BOTH BACK PAY AND REINSTATEMENT FOR THE FORMER EMPLOYEES IN RALEIGH NC WHO EARNED ROUGHLY 460 TO 560 AN HOUR THE WORKERS CLAIMED THEY HADN'T BEEN GIVEN 20CENTPERHOUR RAISES THAT HAD BEEN PROMISED BY THE COMPANY MOST OF THEIR RAISES RANGED FROM SIX CENTS TO 10 CENTS AN HOUR ACCORDING TO ONE OF THE WORKERS A HEARING BEFORE AN ADMINISTRATIVE LAW JUDGE IS SCHEDULED FOR AUG 16 THE DISPUTE REFLECTS BROADENING DISSATISFACTION AMONG CHILDCARE WORKERS OVER LOW WAGES INDUSTRYWIDE KINDERCARE ONE OF THE NATION'S LARGEST CHILDCARE CHAINS SAID ITS ATTORNEYS HAD JUST RECEIVED THE COMPLAINT FILED APRIL 13 AND WERE REVIEWING IT THE COMPANY HAD NO FURTHER COMMENT 9404270127 940427 MARKETING & MEDIA NOTED MOVIE THEATERS SONY THEATRES AND EARVIN JOHNSON JR FORMED A PARTNERSHIP TO BUILD THEATERS IN MINORITY URBAN AND SUBURBAN NEIGHBORHOODS THAT WILL BE CALLED MAGIC JOHNSON THEATRES SONY THEATRES PART OF SONY CORP'S SONY PICTURES ENTERTAINMENT AND JOHNSON DEVELOPMENT CORP WILL SPLIT THE COSTS EQUALLY 9404270126 940427 WHO'S NEWS THIOKOL CORP THIOKOL CORP OGDEN UTAH RICHARD L CORBIN WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER EFFECTIVE MAY 15 MR CORBIN 48 YEARS OLD SUCCEEDS JAMES R WILSON 53 WHO WAS NAMED PRESIDENT AND CHIEF EXECUTIVE LAST OCTOBER MR CORBIN HAD SERVED AS CHIEF FINANCIAL OFFICER AND VICE PRESIDENT ADMINISTRATION FOR GENERAL DYNAMICS CORP'S SPACE SYSTEMS DIVISION IN SAN DIEGO THIOKOL MAKES SOLIDPROPULSION SYSTEMS ORDINANCE AND COMPOSITE PRODUCTS FOR THE SPACE AND DEFENSE INDUSTRIES 9404270125 940427 INTERNATIONAL TELSTRA OPTUS IN VENTURE SYDNEY TELSTRA CORP AND OPTUS COMMUNICATIONS PTY LTD AUSTRALIA'S TWO TELEPHONE COMPANIES ANNOUNCED THEY WILL BUILD AN OPTICAL FIBER SUBMARINE TELECOMMUNICATIONS CABLE BETWEEN WESTERN AUSTRALIA AND INDONESIA AT A COST OF 140 MILLION AUSTRALIAN DOLLARS 1005 MILLION TELSTRA WILL PAY 69 OF THE COST AND OPTUS 31 THE NEW CABLE SYSTEM IS A COOPERATIVE VENTURE BETWEEN TELSTRA OPTUS AND PT INDOSAT OF INDONESIA DESIGNED TO PROVIDE AUSTRALIA WITH ACCESS TO A PROPOSED ASIAPACIFIC CABLE NETWORK OR APCN THE AUSTRALIAN COMPANIES SAID IN A STATEMENT THE AUSTRALIA LINK NAMED APCNA WILL USE OPTICAL AMPLIFIER AND SYNCHRONOUS DIGITAL HEIRARCHY TECHNOLOGIES IT IS SCHEDULED TO BE READY FOR SERVICE BY THE END OF 1996 AND EVENTUALLY WILL REPLACE AN EXISTING AUSTRALIA INDONESIASINGAPORE ANALOGUE COAXIAL CABLE 9404270124 940427 WHO'S NEWS FARR CO FARR CO EL SEGUNDO CALIF HJ MEANY WAS NAMED CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER MR MEANY 71 YEARS OLD SUCCEEDS CHARLES R WOFFORD 61 WHO RESIGNED TO PURSUE OTHER INTERESTS THE COMPANY SAID MR MEANY HAS BEEN A FARR DIRECTOR SINCE 1976 AND MR WOFFORD JOINED FARR IN 1991 FROM TEXAS INSTRUMENTS INC FARR MAKES FILTERS FOR PARTICULATE LIQUID AND GASEOUS FILTRATION SYSTEMS 9404270123 940427 POLYMEDICA INDUSTRIES AND THERMEDICS VIE OVER PATENT RIGHTS WOBURN MASS POLYMEDICA INDUSTRIES INC SAID IT FILED A LAWSUIT AGAINST THERMEDICS INC ALLEGING PATENT INFRINGEMENT RELATING TO BIOSTABLE POLYCARBONATEBASED ALIPHATIC POLYURETHANES THAT POLYMEDICA SELLS UNDER THE TRADE NAME CHRONOFLEX AL A THERMEDICS SPOKESMAN DENIED THE CHARGE AND SAID POLYMEDICA CLAIMS OWNERSHIP OF THE PATENT BECAUSE MICHAEL SZYCHER POLYMEDICA CHAIRMAN WAS A VICE PRESIDENT AT THERMEDICS WHEN HE DEVELOPED THE IDEA AND SIGNED A CONFIDENTIALITY AGREEMENT WITH THERMEDICS BOTH FIRMS ARE BASED IN WOBURN MASS HE SAID THERMEDICS FILED A COUNTERCLAIM AGAINST POLYMEDICA AND MR SZYCHER SEPARATELY POLYMEDICA SAID IT EXPECTS TO BE PROFITABLE IN ITS FOURTH QUARTER ENDED MARCH 31 IN THE YEARAGO QUARTER THE COMPANY POSTED A NET LOSS OF 19 MILLION OR 28 CENTS A SHARE ON REVENUE OF 41 MILLION A SPOKESMAN ATTRIBUTED THE EXPECTED RETURN TO PROFITABILITY TO THE RESULTS OF ITS PHARMACEUTICAL BUSINESS THE COMPANY ALSO SAID IT EXPECTS TO REPORT A SMALLERTHANEXPECTED FULLYEAR LOSS OF ABOUT 400000 AND REVENUE OF MORE THAN 22 MILLION COMPARED WITH A 1993 LOSS OF 39 MILLION ON REVENUE OF 11 MILLION 9404270122 940427 SPORTS WOMEN CAN ONCE AGAIN BOAST A BASEBALL TEAM OF THEIR OWN BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL WINTER HAVEN FLA IT IS 102 DEGREES AND HUMID ON THE FIELD AT CHAIN O' LAKES STADIUM HERE BUT SEVERAL SILVER BULLETS BASEBALL PLAYERS PATIENTLY STAND ON THE DIAMOND AND TAKE TURNS TALKING WITH THE MEDIA THANK GOD FOR COORS LIGHT SAYS 25YEAROLD RACHELLE MCCANN A FORMER SOFTBALL PLAYER AND COACH FROM SAN FRANCISCO STATE UNIVERSITY AND NOW AS A SILVER BULLET A PLAYER FOR THE FIRST WOMEN'S PROFESSIONAL BASEBALL TEAM SINCE THE 1950S THE COLORADO SILVER BULLETS MAY HAVE STARTED OUT AS A WAY OF HELPING COORS BREWING CO SELL BEER BUT THE TEAM'S COMMERCIAL BEGINNINGS DON'T MATTER TO ANYONE ON THE 24WOMAN ROSTER TO THEM LOVERS OF THE GAME SINCE CHILDHOOD THE IMPORTANT FACT IS THAT THIS SUMMER THEIR TEAM WILL PLAY IN 50 GAMES AGAINST SEMIPRO MINORLEAGUE AND OVER30 TEAMS OF MEN AND WILL TRAVEL FROM THEIR SPRINGTRAINING CAMP HERE TO VANCOUVER BRITISH COLUMBIA AND 48 SPOTS IN BETWEEN THEY WILL PLAY IN VENUES AS UNHERALDED AS COBB FIELD IN BILLINGS MONT AND AS VENERABLE AS CANDLESTICK PARK AND THEY WILL EARN 20000 EACH FOR THEIR FOUR MONTHS' WORK ABOUT FIVE TIMES WHAT MALE MINOR LEAGUERS GET BUT UNLIKE MOST MALE MINOR LEAGUERS SOME OF THESE WOMEN GAVE UP LUCRATIVE JOBS TO PLAY BALL GINA SATRIANO 28 DAUGHTER OF FORMER MAJORLEAGUE CATCHER TOM SATRIANO WAS A DEPUTY DISTRICT ATTORNEY IN MALIBU CALIF WHEN SHE ANSWERED THE CALL THE SILVER BULLETS STARTED WHEN COORS BREWING PRESIDENT W LEO KIELY SET OUT TO FIND A SPORTS SPONSORSHIP UNLIKE ANY OTHER MR KIELY ASKED WHITTLE COMMUNICATIONS LP KNOXVILLE TENN A MARKETING AND PROMOTIONS COMPANY TO COME UP WITH A HANDFUL OF UNIQUE SPORTS IDEAS SO THAT IF OTHER BEER COMPANIES FOLLOWED SUIT IT WOULD BE OBVIOUS THEY WERE IMITATING COORS BREWING A UNIT OF ADOLPH COORS CO GOLDEN COLO ROBERT E HOPE PRESIDENT OF WHITTLE AND A PAST VICE PRESIDENT WITH THE ATLANTA BRAVES HAD TRIED TO START A WOMEN'S MINORLEAGUE BASEBALL TEAM 10 YEARS AGO BUT OTHER MINORLEAGUE OWNERS OBJECTED AND HE WAS DENIED A FRANCHISE THEN CAME A LEAGUE OF THEIR OWN A MOVIE ABOUT THE ALLWOMEN'S BASEBALL LEAGUE OF THE LATE 1940S AND EARLY 1950S AND SUDDENLY THE IDEA HAD CACHET LAST FALL MINORLEAGUE OFFICIALS AND MAJOR LEAGUE BASEBALL ENCOURAGED MR HOPE TO GO AHEAD AND COORS PLEDGED 26 MILLION TO THE TEAM THIS SPRING ABOUT 1700 WOMEN SHOWED UP FOR TRYOUTS IN A DOZEN CITIES ACROSS THE COUNTRY SPRING TRAINING BEGAN IN ORLANDO FLA IN MARCH AND FINISHED LAST WEEK IN WINTER HAVEN THE TEAM HAS PLAYED A FEW EXHIBITION GAMES LOSING BY AS MUCH AS 170 OR TYING AGAINST SUCH TEAMS AS THE CHET LEMON ALLSTARS THE FIRST OFFICIAL GAME IS MAY 8 IN CHARLOTTE NC AGAINST THE NORTHERN LEAGUE ALLSTARS NO ONE EXPECTS THESE WOMEN TO WIN MANY GAMES THIS SUMMER THE TEAM WASN'T INSERTED INTO A LEAGUE PARTLY SO THAT THE WOMEN WOULDN'T LOOK UP HALFWAY THROUGH THE SEASON AND FIND THEMSELVES 42 GAMES OUT OF FIRST PLACE MR HOPE SAYS STILL HE WANTS THE TEAM TO IMPROVE ENOUGH TO SERVE AS A CLASS A MINORLEAGUE TEAM FEEDING ITS BEST PLAYERS UP TO CLASS AA AND AAA TEAMS AND EVENTUALLY TO THE MAJOR LEAGUES IT WON'T HAPPEN OVERNIGHT WE CANNOT TEACH THESE WOMEN ENOUGH IN FIVE OR SIX WEEKS TO TAKE THEM TO A MAJORLEAGUE LEVEL SAYS PHIL NIEKRO THE FORMER ATLANTA BRAVES PITCHER WHO IS MANAGING THE TEAM ONE OF HIS FRUSTRATIONS IS THE WAY HIS PLAYERS CELEBRATE ON THE FIELD IN ONE GAME SHORTSTOP ALLISON GEATCHES HIT A TRIPLE AND JUMPED INTO THE ARMS OF THE THIRDBASE COACH HAVE YOU EVER SEEN A MAJORLEAGUE BALLPLAYER DO THAT HE ASKS CALLING IT A SOFTBALL STUNT FOR A LONG TIME IT WAS SOFTBALL OR NOTHING FOR THESE WOMEN MOST DIDN'T WANT TO QUIT PLAYING BASEBALL AFTER LITTLE LEAGUE LONG AFTER MS MCCANN BEGAN PLAYING SOFTBALL IN FIFTH GRADE SHE CONTINUED TO HOVER NEXT TO THE BASEBALL FIELD WITH GLOVE IN HAND WAITING FOR A COACH TO WAVE HER INTO PRACTICE WITH THE BOYS SHE AND MANY OTHERS WERE FORCED INTO SOFTBALL AS A WAY TO WIN COLLEGE SCHOLARSHIPS NOT THAT BASEBALL DIDN'T PRESENT PROBLEMS I WAS ALWAYS THE ONLY GIRL ON THE TEAM SO IT WASN'T MUCH FUN RECALLS ELIZABETH BURNHAM 23 A CATCHER FROM VERMONT BUT SHE WAS WELL INTO HER JUNIOR YEAR IN HIGH SCHOOL PLAYING SOFTBALL AND STILL PLANNING WHO MY BASEBALL AGENT WAS GOING TO BE WHEN SHE SUDDENLY REALIZED SHE WASN'T GOING TO BE ABLE TO PLAY BASEBALL AS AN ADULT IT JUST HIT ME DUH I'M A GIRL SHE SAYS HITTING HER HEAD WITH THE HEEL OF HER PALM LISA MARTINEZ 29 OF STOCKTON CALIF NEVER PLAYED BASEBALL SHE LEARNED HER MEAN UNDERHANDED PITCH IN SOFTBALL WHICH SHE STARTED AT 10 MUCH TO THE CHAGRIN OF A MOTHER WHO WANTED HER TO DO MORE PIANO BALLET AND VIOLIN BY AGE 13 SHE WAS TRAVELING WITH A WOMEN'S LEAGUE AS A PITCHER SHE WON 13 GAMES ONE YEAR AT TEXAS A&M BUT DROPPED SOFTBALL SEVEN YEARS AGO AFTER COLLEGE BUT FOR PITCHER TONI HEISLER 24 HER ASSET IN SOFTBALL QUICKNESS WORKS AGAINST HER IN BASEBALL WHERE SHE NEEDS TO TAKE MORE TIME TO SET HER FEET AND THROW MORE ACCURATELY TO TRY OUT FOR THE TEAM MS HEISLER QUIT HER RECREATION JOB IN SACRAMENTO AND TRAVELED TO FLORIDA I WAS HOPING TO MAKE THE TEAM BECAUSE IF I DIDN'T I WOULDN'T GET MY JOB BACK OTHERS ALSO INTERRUPTED THEIR LIVES MS MARTINEZ WAS A HIGHSCHOOL SCIENCE TEACHER GETTING READY TO START A MASTER'S DEGREE IN SCIENCES MS GEATCHES WHO TAUGHT EMOTIONALLY HANDICAPPED CHILDREN IN MICHIGAN MISSES HER FORMER CHARGES EVERY DAY SHE IS USUALLY THE FIRST TO NOTICE THE LITTLE GIRLS WHO HANG AROUND THE STADIUM HOPING TO GET A BALL SIGNED THAT'S HOW PINTSIZE STEPHANIE PFISTER FOUR YEARS OLD OF LAKELAND FLA GOT HER BALL SIGNED BY ALL 24 PLAYERS A TBALL PLAYER WHO ALREADY KNOWS THE NAMES OF THE ST LOUIS CARDINALS THE USUALLY SHY STEPHANIE HAPPILY TROTS OUT ON THE FIELD TO GET HER PICTURE TAKEN WITH SEVERAL SILVER BULLETS THE MOST APPRECIATIVE SPECTATOR WAS 11YEAROLD BECKY WILSON OF CHESTERFIELD MASS WHO WAS ON SPRING BREAK IN FLORIDA WITH HER GRANDMOTHER WHEN THEY HEARD THE TEAM WAS PRACTICING NEARBY BECKY BROUGHT HER OMNIPRESENT MITT AND BASEBALL HAT AND STOOD UP AGAINST THE FENCE TO CATCH ALL THE ACTION I'D LIKE TO TRY OUT FOR THE TEAM SHE SAID SAID MS GEATCHES THAT'S SUCH A BIG PART OF THIS THE LITTLE GIRLS COMING TO WATCH MR NIEKRO HOPES THE TEAM WILL ENCOURAGE HIGH SCHOOLS AND COLLEGES TO START WOMEN'S BASEBALL TEAMS RIGHT NOW GIRLS ARE BUYING BASEBALL MITTS INSTEAD OF SOFTBALL GLOVES BECAUSE OF THIS TEAM HE SAYS MAYBE THIS IS THE START OF A BASEBALL PROGRAM FOR WOMEN IN THIS COUNTRY 9404270121 940427 LETTERS TO THE EDITOR TO CURB WELFARE USE MAKE IT UNCOMFORTABLE IN HER APRIL 13 LETTER PROF LAURIE SCHWAB ZABIN CRITICIZES MY ASSERTION THAT FOR MANY DISADVANTAGED TEENAGERS HAVING A BABY OUT OF WEDLOCK IS NOT INCONVENIENT AND THAT TO ADDRESS THIS REALITY WELFARE PROGRAMS SHOULD REQUIRE ALL RECIPIENTS TO DO SOMETHING CONSTRUCTIVE EVERY DAY TO BOLSTER HER ARGUMENT PROF ZABIN CLAIMS I MISQUOTED HER DATA WHEN I WROTE THAT ONLY 31 OF THE UNWED TEEN MOTHERS IN HER SURVEY SAID THAT THEY BELIEVED A BABY WOULD PRESENT A PROBLEM ACCORDING TO HER THE CORRECT NUMBER IS 75 I BASED MY STATEMENT ON THE FOLLOWING PASSAGE PROF ZABIN WROTE WITH TWO COLLEAGUES IN THE JOURNAL OF RESEARCH ON ADOLESCENCE IN A SAMPLE OF INNERCITY BLACK TEENS PRESENTING FOR PREGNANCY TESTS WE REPORTED THAT MORE THAN 31 OF THOSE WHO ELECTED TO CARRY THEIR PREGNANCIES TO TERM TOLD US BEFORE THEIR PREGNANCIES WERE DIAGNOSED THAT THEY BELIEVED A BABY WOULD PRESENT A PROBLEM AND AN ABORTION WOULD NOT FROM A TELEPHONE CONVERSATION WITH PROF ZABIN I GATHER THAT THE 75 FIGURE WHICH BY THE WAY IS AN UNPUBLISHED STATISTIC REFERS TO ALL TEENS SEEKING A PREGNANCY TEST PRESUMABLY INCLUDING THOSE WHO TESTED NEGATIVE OR WHO HAD AN ABORTION WHEREAS THE 31 FIGURE I CITED RELATES ONLY TO THOSE WHO DECIDED TO BECOME UNWED MOTHERS WHY THE DIFFERENCE MANY MORE OF THE TEENS WHO HAD AN ABORTION FULLY 78 SAID THAT HAVING A BABY WOULD PRESENT A PROBLEM AND THAT OF COURSE IS MY POINT THE MORE INCONVENIENT UNWED PARENTHOOD SEEMS TO A TEENAGER THE LESS LIKELY IT IS THAT SHE WILL BECOME A MOTHER FEELINGS ABOUT ABORTION ALSO AFFECT DECISION MAKING HOWEVER ANOTHER 26 OF THE TEENS WHO WENT TO TERM APPARENTLY SAID THAT BOTH HAVING AN ABORTION AND HAVING A BABY WOULD BE A PROBLEM BUT THE LARGER POINT REMAINS MANY INNERCITY TEENS DO NOT VIEW UNWED PARENTHOOD AND TIME ON WELFARE AS A SERIOUS DISRUPTION TO THEIR LIVES MANY OTHER STUDIES HAVE MADE THE SAME POINT FOR EXAMPLE IN THE LATE 1970S ELLEN FREEMAN AND HER COLLEAGUES AT THE UNIVERSITY OF PENNSYLVANIA SURVEYED BLACK NEVERPREGNANT FEMALES AGED 17 OR YOUNGER ONLY 40 THOUGHT THAT A PREGNANCY IN THE NEXT YEAR WOULD MAKE THEIR SITUATION WORSE 38 SAID THEY DIDN'T KNOW PROF ZABIN MAY NOT LIKE THE IMPLICATIONS OF HER FINDINGS BUT SHE SHOULD NOT DENY THE DATA IN ORDER TO ATTACK MY CONCLUSION DISCOURAGING UNWED PARENTHOOD REQUIRES INCREASING BOTH THE LIFE PROSPECTS OF DISADVANTAGED TEENS AND THE INCONVENIENCE OF BEING ON WELFARE 9404270120 940427 SENATE APPROVES BILL ALLOWING BANKS TO OPERATE INTERSTATE BRANCH NETWORKS BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE APPROVED LEGISLATION THAT WOULD PERMIT BANKS TO OPERATE INTERSTATE BRANCH NETWORKS A MOVE THAT IS EXPECTED TO SPARK ADDITIONAL BANK MERGERS AND PRODUCE STRONGER NATIONWIDE INSTITUTIONS THE BILL WHICH WAS ONCE HIGHLY CONTROVERSIAL WAS PASSED ON A VOICE VOTE YESTERDAY BANKS WHICH HAVE LONG SOUGHT THE AUTHORITY TO OPERATE INTERSTATE NETWORKS USUALLY AREN'T ALLOWED TO ADD BRANCHES OUTSIDE OF THEIR HOME STATES CURRENTLY BANKS THAT WANT TO OPERATE IN MORE THAN ONE STATE MUST INCORPORATE SEPARATE BANKING SUBSIDIARIES IN EACH STATE THE SENATE BILL WOULD ALLOW BANKS TO EXPAND INTO OTHER STATES MAINLY BY ACQUIRING OTHER BANKS THE PROVISIONS WOULD BE PHASED IN OVER THREE YEARS THE HOUSE APPROVED A SIMILAR BILL LAST MONTH BOTH BILLS ALSO WOULD LET BANKS OPEN NEW BRANCHES IN OTHER STATES BUT ONLY IF THE AFFECTED STATES PERMIT IT HOUSESENATE CONFEREES WILL MEET SOON TO RESOLVE THE MODEST DIFFERENCES BETWEEN THE TWO MEASURES SUCH AS HOW BANKS CAN ADD BRANCHES AND RULES FOR FEDERAL PREEMPTION OF STATE LAWS TREASURY SECRETARY LLOYD BENTSEN CALLED THE SENATE BILL AN IMPORTANT STEP TOWARD THE ADMINISTRATION'S GOAL OF MAKING THE BANKING SYSTEM MORE EFFICENT AND INCREASING CREDIT A HOUSE BANKING COMMITTEE STAFFER PREDICTED A SIGNIFICANT INCREASE IN CONSOLIDATIONS AMONG LARGER BANKS MOSTLY BECAUSE OF THE LEGISLATION WITH THE 150 TO 160 BIGGEST BANKS SHRINKING TO 60 TO 70 IN THE NEXT FIVE YEARS THE LEGISLATION WOULD ALLOW SOME MERGERS THAT WOULDN'T HAVE OCCURRED OTHERWISE ADDED DIANE GLOSSMAN A SALOMON BROTHERS BANK ANALYST WE CONTINUE TO BELIEVE THERE WILL BE MORE MERGERS IN ADDITION TO THE MANY THAT HAVE OCCURRED IN RECENT YEARS SHE SAID INTERSTATE BRANCHING WILL PERMIT MANY BANKS TO CREATE SINGLE INSTITUTIONS INSTEAD OF THE SERIES OF STATEBYSTATE AFFILIATES SAVING MONEY THROUGH NEW EFFICIENCIES AND REDUCING THEIR REGULATORY BURDENS MS GLOSSMAN SAID BUT THE LEGISLATION WON'T CHANGE THE COMPLEXION OF BANKING SHE ADDED SENATORS PLUMPING FOR PASSAGE OF THE BILL CITED STUDIES SHOWING THAT BANK PERFORMANCE IMPROVES WITH INCREASED ABILITY TO ENTER NEW MARKETS AND THAT LIMITING BANKS' ABILITY TO DIVERSIFY GEOGRAPHICALLY MAKES THEM MORE VULNERABLE TO ECONOMIC SLUMPS AND HURTS CUSTOMER SERVICE LARGE BANKS HAD LOBBIED UNSUCCESSFULLY FOR THE NATIONWIDE BANKING AUTHORITY FOR MANY YEARS BUT CONGRESSIONAL RESISTANCE LATELY HAD BEEN MELTING AS LAWMAKERS ACCEPTED ARGUMENTS THAT A MORE DIVERSE BANKING SYSTEM COULD HAVE BETTER WITHSTOOD THE IMPACT OF THE CREDIT CRUNCH AND THE COLLAPSE OF REALESTATE MARKETS IN THE LAST RECESSION THE BILL'S MANAGERS TAKING THEIR CUE FROM THE WAY THE HOUSE BILL WAS HANDLED LAST MONTH REFUSED TO ALLOW SOME AMENDMENTS BACKED BY CONSUMER GROUPS THIS INCLUDED ONES THAT WOULD HAVE IMPOSED ADDITIONAL REPORTING CHORES FOR THE BANKING INDUSTRY AND REQUIRED THEM TO ADOPT NEW COMMUNITYREINVESTMENT DUTIES ANY SUCH AMENDMENTS WOULD KILL THE BILL SAID SEN CHRISTOPHER DODD D CONN IN FEBRUARY SEN DODD HIMSELF DROPPED HIS PREVIOUS INSISTENCE THAT ANY PLAN FOR NATIONWIDE BRANCH NETWORKS RESTRICT BANKS' ABILITY TO SELL INSURANCE THIS BILL HAD TO BE CLEAN AS A WHISTLE OR IT WOULD NOT HAVE BEEN SUPPORTED BY THE BANKING INDUSTRY SAID DONALD OGILVIE EXECUTIVE VICE PRESIDENT OF THE AMERICAN BANKERS ASSOCIATION WHILE ABOUT 25 LARGE AND MEDIUMSIZED BANKS SOUGHT THE LEGISLATION MANY SMALLER ONES OPPOSED IT AS THREATENING TO PUT THEM OUT OF BUSINESS EVEN THE LARGE BANKS WOULDN'T HAVE ACCEPTED RESTRICTIVE AMENDMENTS TACKED ONTO THE MEASURE PREFERRING TO TAKE SEVERAL YEARS TO ADD NEW BRANCHES THROUGH MORE LABORIOUS PROCEDURES UNDER EXISTING LAW CONSUMER GROUPS STILL WEREN'T PLEASED WITH THE LEGISLATION WE ARE NOT CONFIDENT ABOUT THE CLAIMS OF CONSUMER SERVICE SAID CHRIS LEWIS A LOBBYIST FOR THE CONSUMER FEDERATION OF AMERICA SEN BYRON DORGAN D ND SAID AFTER THE SENATE VOTE THAT HE FORESEES BANKS TAKING MONEY FROM AREAS LIKE THE UPPER MIDWEST AND LENDING OR INVESTING IT ELSEWHERE THE SENATE DID ADOPT SEVERAL AMENDMENTS BY VOICE VOTE INCLUDING ONE THAT WOULD GIVE STATES MORE TIME TO DECIDE AGAINST ALLOWING INSTERSTATE BANKING TO EXTEND INTO THEIR AREAS ANOTHER AMENDMENT WOULD OVERRIDE STATE LIMITS ON THE TIME ALLOWED FOR LAWSUITS AGAINST OFFICERS AND DIRECTORS OF FAILED THRIFTS AND BANKS FOR CONTRIBUTING TO INSTITUTIONS' FAILURE THE AMENDMENT WOULD SALVAGE ABOUT 16 BILLION IN CLAIMS BEING PRESSED BY THE RESOLUTION TRUST CORP AND THE FEDERAL DEPOSIT INSURANCE CORP IT WAS INTENDED TO COUNTERACT RULINGS LATE LAST YEAR BY TWO FEDERAL APPEALS COURTS WHICH SAID THAT FEDERAL REGULATORS MUST ABIDE BY STATE STATUTES OF LIMITATION THE AMENDMENT SPONSORED BY SEN HOWARD METZENBAUM D OHIO WOULD GIVE REGULATORS FIVE YEARS TO BRING CLAIMS AGAINST OFFICERS AND DIRECTORS RATHER THAN THE TWO OR THREE YEARS TYPICALLY ALLOWED BY THE STATES CHRISTI HARLAN CONTRIBUTED TO THIS ARTICLE 9404270119 940427 INTERNATIONAL DUTCH INDUSTRIAL OUTPUT AMSTERDAM INDUSTRIAL PRODUCTION IN THE NETHERLANDS WAS MIXED IN JANUARY AND FEBRUARY GOVERNMENT DATA REPORTED THE CENTRAL BUREAU FOR STATISTICS SAID INDUSTRIAL OUTPUT ROSE 59 IN JANUARY FROM DECEMBER BUT WAS DOWN 1 FROM THE YEAREARLIER PERIOD IN FEBRUARY PRODUCTION ROSE 1 FROM JANUARY AND 01 FROM A YEAR EARLIER INDUSTRIAL PRODUCTION TENDS TO FLUCTUATE FROM MONTH TO MONTH IN THE NETHERLANDS AND MANY OTHER COUNTRIES 9404270118 940427 TECHNOLOGY & HEALTH WYGOD WITHDRAWS FROM RACE TO BE MERCK CHAIRMAN BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL NORTH BRANCH NJ MERCK & CO CHAIRMAN P ROY VAGELOS SAID AT THE COMPANY'S ANNUAL MEETING THAT MARTIN J WYGOD HAS ADVISED THE BOARD THAT HE DOESN'T WANT TO BE CONSIDERED TO SUCCEED DR VAGELOS UPON HIS RETIREMENT THIS FALL MR WYGOD CHAIRMAN OF THE MERCK UNIT MEDCO CONTAINMENT SERVICES INC AND A MEMBER OF THE MERCK BOARD WAS WIDELY CONSIDERED TO BE THE LEADING CONTENDER FOR MERCK'S CHAIRMANSHIP DR VAGELOS CONFIRMED THAT HE INTENDS TO RETIRE ON NOV 1 AND HE ADDED THAT THE BOARD IS WELL ALONG IN THE SUCCESSION PROCESS MR WYGOD IS THE SECOND LEADING CANDIDATE TO WITHDRAW FROM CONTENTION FOR THE MERCK CHAIRMANSHIP IN LESS THAN A YEAR RICHARD MARKHAM WHO PRESIDED OVER MUCH OF THE MERCK ANNUAL MEETING LAST YEAR AS THE COMPANY'S PRESIDENT ABRUPTLY QUIT A FEW MONTHS LATER DR VAGELOS AND MR WYGOD REFUSED TO ADDRESS FURTHER QUESTIONS ON THE ANNOUNCEMENT LEAVING OPEN TO SPECULATION THE REASONS FOR MR WYGOD'S DECISION DR VAGELOS CHARACTERIZED THE DECISION AS MR WYGOD'S AND HE DECLINED TO IDENTIFY OTHER CANDIDATES OR SAY WHETHER ANY OUTSIDERS WOULD BE CONSIDERED NEITHER EXECUTIVE WOULD SAY WHETHER MR WYGOD WOULD REMAIN WITH THE COMPANY AND ON THE BOARD ANALYSTS AND OTHERS HAVE QUESTIONED WHETHER THE ENTREPRENEURIAL MR WYGOD AND MEDCO WOULD MESH WELL WITH MERCK'S FORMAL CORPORATE CULTURE WHILE MERCK HAS PRESENTED THE PICTURE OF A HAPPY MARRIAGE BETWEEN THE TWO COMPANIES MR WYGOD'S DECISION RAISES THE POSSIBILITY THAT AT LEAST HE WASN'T COMFORTABLE WITHIN THE PHARMACEUTICAL GIANT ONE ANALYST WHO CALLED THE ANNOUNCEMENT A BOMBSHELL SAID MR WYGOD'S WITHDRAWAL IS A SIGN OF A CULTURE CLASH BETWEEN MERCK AND MEDCO MERCK ALWAYS OPERATED WITH BIG COMMITTEES BIG PROJECTS AND BIG RESEARCH WITH EVERYONE CONSULTED THE ANALYST SAID MARTY WYGOD DOESN'T OPERATE THAT WAY HE JUST PICKS UP THE PHONE AND THE DEAL'S DONE THE MOVE CREATES A LOT OF UNCERTAINTY OVER THE FUTURE LEADERSHIP OF MERCK HE ADDED DR VAGELOS SAID HE HASN'T MADE ANY POSTRETIREMENT PLANS SAYING IT'S A TOSSUP BETWEEN MOVING INTO A UNIVERSITY SETTING OR STAYING WITHIN THE HEALTHCARE AREA ALSO AT THE ANNUAL MEETING DR VAGELOS SAID COSTCUTTING MEASURES WILL RESULT IN FURTHER JOB REDUCTIONS THROUGHOUT THE COMPANY EXCEPT IN SOME AREAS SUCH AS THE FAR EAST MERCK'S RESTRUCTURING PROGRAM WILL RESULT IN SAVINGS OF AT LEAST 25 BILLION FOR THE PERIOD 1990 THROUGH 1997 HE SAID HE ADDED THAT THE COMPANY DOESN'T EXPECT ANY ADDITIONAL CHARGES AGAINST EARNINGS LAST YEAR THE COMPANY TOOK A 775 MILLION RESTRUCTURING CHARGE 9404270117 940427 TENNECO PLANS TO SELL 35 OF CASE UNIT TO PUBLIC ON REVIVAL IN AGRICULTURE BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON TENNECO INC SAID IT PLANS TO TAKE ADVANTAGE OF THE AGRICULTURALMARKET REVIVAL BY MAKING AN INITIAL PUBLIC OFFERING OF 35 OF ITS CASE CORP SUBSIDIARY THE NATION'S SECONDBIGGEST MAKER OF FARM EQUIPMENT THE COMPANY HASN'T YET SET A PRICE FOR THE OFFERING BUT DANA MEAD TENNECO'S CHIEF EXECUTIVE OFFICER SAID HE EXPECTS THAT CASE'S STOCKMARKET VALUE WOULD EXCEED ITS BOOK VALUE OF 115 BILLION THAT WOULD GIVE THE SALE A FLOOR OF ABOUT 400 MILLION BUT ANALYSTS SAY PROCEEDS COULD BE MORE THAN 25 HIGHER DEPENDING ON MARKET CONDITIONS AT THE TIME OF THE SALE PROFIT PROJECTIONS THE AMOUNT OF CASE DEBT AND OTHER BALANCESHEET CONSIDERATIONS AS FOR CASE ITSELF MR MEAD SAID THE COMPANY WHICH IS ALSO A LARGE MAKER OF CONSTRUCTION EQUIPMENT IS UNDERGOING A RENAISSANCE IN FIRSTQUARTER RESULTS RELEASED YESTERDAY TENNECO SAID THAT CASE HAD AN OPERATING PROFIT OF 81 MILLION COMPARED WITH AN OPERATING LOSS OF 17 MILLION A YEAR EARLIER CASE'S GAINS FAR OUTPACED INDUSTRY GROWTH RATES IN SEVERAL MARKETS CASE SAID ITS SALES OF TRACTORS OF 100 HORSEPOWER OR MORE CLIMBED 87 IN NORTH AMERICA COMPARED WITH AN INDUSTRY INCREASE OF 18 CASE CONSTRUCTIONEQUIPMENT SALES SURGED 54 COMPARED WITH 40 FOR THE INDUSTRY REVENUE OF 1 BILLION MAKES CASE THE LARGEST DIVISION OF TENNECO A CONGLOMERATE WITH INTERESTS AS FARFLUNG AS SPECIALTY CHEMICALS NATURALGAS PIPELINES AND SHIPBUILDING FELIX ROHATYN SENIOR PARTNER AT LAZARD FRERES & CO WHICH ALONG WITH CS FIRST BOSTON INC WILL COLEAD THE OFFER SAID THE COMBINATION OF A STRONG FARMEQUIPMENT MARKET AND THE TURNAROUND AT CASE MADE TIMING FOR THE OFFER RIPE YOU CAN ONLY DO THESE THINGS WHEN THEY'RE GOING WELL HE SAID TENNECO SHARES FELL SLIGHTLY YESTERDAY ENDING AT 5175 DOWN 50 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ON MONDAY HOWEVER TENNECO JUMPED 1875 FOLLOWING A STORY IN THIS NEWSPAPER THAT THE COMPANY WAS ON THE VERGE OF UNVEILING ITS PLANS TO SHED CASE THE SALE OF CASE STOCK IS THE FIRST MAJOR STEP TAKEN BY TENNECO'S RECENTLY ELECTED CHIEF EXECUTIVE THE 58YEAROLD MR MEAD WHO ALONG WITH MICHAEL WALSH HIS PREDECESSOR IS LARGELY CREDITED WITH CASE'S RECOVERY FROM THE FIRST DAY MIKE WALSH CAME TO TENNECO HE WAS INTERESTED IN SEGREGATING CASE FROM THE REST OF TENNECO MR ROHATYN SAID YOU COULDN'T EXECUTE IT UNTIL YOU STOPPED THE BLEEDING RECENT BAD TIMES AS RECENTLY AS 1992 CASE HAD AN OPERATING LOSS OF 105 BILLION INCLUDING A 920 MILLION RESTRUCTURING CHARGE YOU HAVE TO REMEMBER THAT TWO YEARS AGO CASE WAS WORTH NOTHING SAID ELI LUSTGARTEN AN ANALYST AT PAINEWEBBER INC IN NEW YORK MR MEAD BECAME CHIEF EXECUTIVE IN LATE FEBRUARY WHEN MR WALSH STEPPED DOWN AFTER TELLING DIRECTORS THAT TREATMENT FOR A BRAIN TUMOR WAS IMPAIRING HIS ABILITY TO RUN THE COMPANY AND HIS HEALTH IS SAID TO HAVE DETERIORATED FURTHER MR MEAD HAS BEEN CHAIRMAN OF CASE SINCE SEPTEMBER 1992 HE SAID THAT HE WOULD REMAIN IN THAT POST AFTER THE STOCK OFFERING AND THAT TENNECO MANAGEMENT WOULD CONTINUE TO REMAIN DEEPLY INVOLVED IN ALL ITS OPERATIONS AFTER THE OFFER TENNECO WOULD RETAIN 65 OF CASE SHARES IN A SECURITIES AND EXCHANGE COMMISSION FILING TENNECO SAID IT WOULD SELL 245 MILLION CASE SHARES AND HOLD ON TO 455 MILLION THE SEC FILING SAID CASE EXPECTS TO PAY AN INITIAL QUARTERLY DIVIDEND OF FIVE CENTS A SHARE IN THE FIRST QUARTER TENNECO SAID ITS NET INCOME ROSE TO 83 MILLION FROM 74 MILLION A YEAR EARLIER INCLUDING AN ACCOUNTING CHARGE OF 39 MILLION OR 22 CENTS A SHARE IN THE LATEST PERIOD PERSHARE NET INCOME FELL SLIGHTLY TO 45 CENTS FROM 46 CENTS AS THE COMPANY'S SHARES OUTSTANDING ROSE 18 REVENUE ROSE TO 12 TO 329 BILLION FROM 325 BILLION 9404270115 940427 RULE OF LAW A CRIME BILL THAT WOULD WORK BY ZOE BAIRD EVERYONE DISLIKES SOMETHING IN THE CRIME BILL PASSED BY THE HOUSE LAST WEEK BUT IT DESERVES PRAISE FOR BRINGING PEOPLE TOGETHER ON THIS PRESSING COMPLEX POLITICALLY EXPLOSIVE PUBLIC ISSUE AREAS OF CONSENSUS WERE FOUND AND WHERE THERE WAS NO CONSENSUS COMPROMISES WERE REACHED TO UNDERTAKE A VARIETY OF INITIATIVES SIMULTANEOUSLY THE BILL'S CENTRAL INTELLECTUAL ACCOMPLISHMENT IS THAT IT AVOIDS CHOOSING SIDES IN THE HISTORICALLY POLARIZED DEBATE BETWEEN THOSE WHO BELIEVE WE CAN REDUCE VIOLENCE ONLY THROUGH TOUGHER PUNISHMENTS AND THOSE WHO THINK THE ONLY HOPE IS PREVENTIVE MEASURES ADDRESSING THE UNDERLYING CAUSES OF CRIME ALTHOUGH PUBLIC ATTENTION HAS BEEN FOCUSED ON THE TOUGH PUNISHMENTS AUTHORIZED BY THE BILL LONGER SENTENCES MORE DEATH PENALTIES MORE JAILS IN FACT THE BILL IS BALANCED BETWEEN PUNISHMENT AND PREVENTION THERE IS WIDE MISUNDERSTANDING ABOUT THIS THE HEAD OF THE AMERICAN SOCIETY OF CRIMINOLOGY HAS BEEN QUOTED AS SAYING THAT THE HOUSE BILL WAS FINE IF YOU WANT TO BE IN THE PUNISHMENT BUSINESS BUT NOT IF YOU WANT TO BE IN THE CRIMECONTROL BUSINESS THIS WIDELY SHARED VIEW IS UNFAIR TO THE BILL WHICH ALSO AUTHORIZES 9 BILLION FOR DRUG TREATMENT AFTERSCHOOL PROGRAMS AND VARIOUS OTHER PREVENTION EFFORTS PLUS 345 BILLION FOR PREVENTIONORIENTED COMMUNITY POLICING PUNISHMENT ITSELF OF COURSE IS MORE THAN JUST VINDICTIVE RETRIBUTION IT IS IN PART A FORM OF CRIME PREVENTION BY PREVENTING THOSE INCARCERATED FROM COMMITTING NEW CRIMES DETERRING OTHERS AND SETTING CLEAR MORAL BOUNDARIES EVEN THE SEVERE THREESTRIKESYOU'REOUT PROPOSAL FOR A NARROW CATEGORY OF SERIOUS OFFENSES CAN BE DEFENDED AS FURTHERING THESE PREVENTIVE PURPOSES ALTHOUGH FOR BOTH BUDGETARY AND HUMANITARIAN REASONS I WOULD FAVOR A VERSION THAT PERMITS SOME PEOPLE TO BE RELEASED FROM PRISON AFTER AGE 60 WHEN THE PROPENSITY FOR VIOLENCE BURNS OUT BUT ALONG WITH PUNISHMENT THE HOUSE BILL AUTHORIZES EXTENSIVE NONPUNITIVE PREVENTION ACTIONS IN THE WEEKS AHEAD WE NEED TO HAVE A WIDER PUBLIC DEBATE ABOUT WHICH PREVENTION PROGRAMS ARE MOST WORTH FUNDING AT WHAT LEVELS NOT JUST MORE DEBATE ABOUT THE HOUSE AND SENATE BILLS' CONFLICTING PUNISHMENT PROPOSALS LARGE HOUSESENATE DIFFERENCES MUST BE BRIDGED AND THE ATTORNEY GENERAL WILL HAVE TO START DEVELOPING AN ADMINISTRATIVE PROCESS FOR EXERCISING THE BROAD DISCRETION SHE'LL BE GIVEN TO FUND APPROPRIATE PREVENTION EFFORTS BOTH CRIME BILLS CORRECTLY FAVOR PREVENTION EFFORTS THAT ARE DIRECTLY TARGETED AT REDUCING CRIME THESE ARE NOT PROGRAMS DESIGNED TO COUNTER THE ROOT CAUSES OF CRIME SUCH AS POVERTY LACK OF JOBS AND LIMITED EDUCATIONAL SKILLS THESE ARE THE BROADER CONCERNS OF HUD AND THE DEPARTMENTS OF HEALTH AND HUMAN SERVICES LABOR AND EDUCATION SUCH PROGRAMS CAN IMPROVE LIVES AND GIVE HOPE AND THEREFORE BECOME POWERFUL CRIME PREVENTION EFFORTS IN THEIR OWN RIGHT THE CRIME BILLS INSTEAD FOCUS ON MORE DIRECT CRIME PREVENTION WE NEED TO SEARCH OUT EFFECTIVE CRIME PREVENTION PROGRAMS FROM AROUND THE COUNTRY AND REPLICATE THEM WITH INCREASED FEDERAL SUPPORT ONE EXAMPLE IS CONFLICT RESOLUTION PROGRAMS AN ASTONISHING BUT CRITICALLY IMPORTANT STATISTIC THAT HAS RECEIVED LITTLE ATTENTION IN THE CURRENT CRIME CONTROL DISCUSSIONS IS THAT APPROXIMATELY HALF OF ALL ASSAULTS AND HOMICIDES ARE COMMITTED ON PEOPLE KNOWN TO THE PERPETRATOR THEY ARE NOT IMPERSONAL CRIMES COMMITTED ON STRANGERS THIS STRIKING FACT SUGGESTS THAT CONFLICT RESOLUTION PROGRAMS COULD SIGNIFICANTLY REDUCE THIS KIND OF VIOLENCE AND TWO PROGRAMS HERE IN CONNECTICUT FOR EXAMPLE HAVE DEMONSTRATED THAT THEY DO BOTH INVOLVE MEDIATION ONE PROGRAM INVOLVES KIDS IN HIGH SCHOOLS AND MIDDLE SCHOOLS TEACHERS BREAKING UP FIGHTS SEND MANY OF THESE KIDS TO MEDIATION BY THEIR PEERS STUDENT MEDIATORS TRAINED BY TEACHERS AND VOLUNTEER ATTORNEYS HELP THE KIDS FIGURE OUT WHAT REAL OR MISUNDERSTOOD PROBLEMS HAVE LED TO VIOLENCE AND THEN FIND ANOTHER ANSWER THE KIDS IN CONFLICT ARE GIVEN THE TOOLS TO PRODUCE A MUTUALLY ACCEPTABLE SOLUTION THEY CAN LIVE WITH THE STUDENT MEDIATORS ARE EMPOWERED BECAUSE THEY'VE BEEN TRAINED TO CHANGE EVENTS BY USING THEIR OWN COMMON SENSE AND UNDERSTANDING OF THE FORCES AFFECTING THEIR CLASSMATES' LIVES SOME EDUCATORS HAVE REPORTED UP TO A 40 REDUCTION IN VIOLENCE IN SCHOOLS THROUGH PROGRAMS LIKE THIS ONE HERE IN CONNECTICUT WE'VE ALSO SEEN SUCCESS IN THE SECOND PROGRAM COMMUNITY MEDIATION BY LAWYERS WHERE CRIMINAL CHARGES INVOLVING VIOLENCELADEN SITUATIONS MAY BE DROPPED IF THE PARTIES TO THE CONFLICT CAN AGREE TO A RESOLUTION UNLIKE MANY PROGRAMS TO ADDRESS UNDERLYING CAUSES OF VIOLENT CRIME MEDIATION PROGRAMS ADDRESS THE ISSUE OF VIOLENCE DIRECTLY AND DON'T IMPLY THAT VIOLENCE PREVENTION MUST WAIT UNTIL SOCIAL CONDITIONS FUNDAMENTALLY IMPROVE BUT MEDIATION PROGRAMS DEFINITELY DO ADDRESS ROOT CAUSES OF VIOLENCE THE BELIEF THAT VIOLENCE IS AN ACCEPTABLE SOLUTION FOR CONFLICT AND THE ABSENCE OF SKILLS AND MECHANISMS TO RESOLVE CONFLICT WITHOUT VIOLENCE AND THEY DEVELOP INTERPERSONAL SKILLS WITHIN THE WIDER COMMUNITY THAT OVER TIME WILL STRENGTHEN AND STABILIZE NEIGHBORHOODS PREVENTION PROGRAMS LIKE THESE DESERVE BROADER SUPPORT OBVIOUSLY THEY ARE NOT A CUREALL BUT THERE IS NO ONE RIGHT APPROACH THE HOUSE BILL'S CENTRAL ACHIEVEMENT IS THAT IT RECOGNIZES THAT THE FIGHT AGAINST VIOLENT CRIME REQUIRES A COMBINATION OF PUNISHMENT AND PREVENTION STRATEGIES ADOPTED IN A SPIRIT OF ONGOING EXPERIMENTATION SOME FEATURES OF THE BILL SEEM TO ME WRONG TURNS FOR EXAMPLE THE VAST EXPANSION OF BOTH THE NUMBER OF FEDERAL CRIMES AND THE NUMBER OF FEDERAL DEATH PENALTIES BUT OVERALL THE BILL'S MULTIPRONGED APPROACH IS GOOD POLICY PUNISHMENT AND PREVENTION ARE ALSO RELATED IN POLITICAL TERMS POLITICIANS ARE ROUTINELY CRITICIZED BY SOME FOR TOUGHSOUNDING POSTURING PERHAPS THERE IS SOME TRUTH TO THIS BUT POLITICALLY THE PUBLIC WILL NOT SUPPORT EFFORTS TO COMBAT THE CHRONIC CONDITIONS THAT MAY BE THE UNDERLYING CAUSES OF CRIME IF VIGOROUS EFFORTS ARE NOT BEING MADE TO PUNISH THE IMMEDIATE ACUTE MANIFESTATIONS OF CRIMINAL BEHAVIOR TODAY WE ARE AT A RARE MOMENT IN WHICH THERE IS GREATER NATIONAL AGREEMENT ABOUT FIGHTING CRIME THAN THERE'S BEEN IN DECADES WE MUST STRONGLY PUNISH MAJOR OFFENDERS BUT ALSO GIVE PEOPLE MORE TOOLS TO LEAD PRODUCTIVE NONVIOLENT LIVES WE MUST BE TOUGH ON TOUGH CHARACTERS BUT ALSO CONTINUE TRYING TO BUILD CHARACTER MS BAIRD SENIOR VICE PRESIDENT AND GENERAL COUNSEL OF AETNA LIFE & CASUALTY CO WAS PRESIDENT CLINTON'S INITIAL NOMINEE TO BE ATTORNEY GENERAL 9404270114 940427 WHO'S NEWS WCT COMMUNICATIONS INC WCT COMMUNICATIONS INC SANTA BARBARA CALIF DONALD H SLEDGE WAS NAMED PRESIDENT OF THIS LONGDISTANCE TELECOMMUNICATIONS COMPANY AND WILL ALSO HOLD THE NEWLY CREATED POSITION OF CHIEF OPERATING OFFICER MR SLEDGE 53 YEARS OLD ASSUMES THE PRESIDENT'S POSITION FROM RICHARD FROCKT 49 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE MR SLEDGE MOST RECENTLY SERVED AS INTERIM HEAD OF OPERATIONS OF NEW T&T A NEW TELEPHONE COMPANY IN HONG KONG AND HAS HELD SEVERAL OTHER POSITIONS IN VARIOUS TELECOMMUNICATIONS CONCERNS 9404270113 940427 WHO'S NEWS CITICORP CITICORP NEW YORK THIS BANK HOLDING COMPANY NAMED MICHAEL RICCIARDI 38 YEARS OLD COHEAD OF FIXED INCOME IN THE US IN THIS NEWLY CREATED POSITION MR RICCIARDI WILL BE RESPONSIBLE FOR DEVELOPING CITICORP SECURITIES INC'S INVESTOR BASE AND JOINTLY MANAGING ITS FIXEDINCOME BUSINESS MR RICCIARDI WAS MOST RECENTLY MANAGING DIRECTOR OF FIXEDINCOME SALES AT GENERAL ELECTRIC CO'S KIDDER PEABODY & CO SUBSIDIARY 9404270112 940427 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB IF YOU'RE INTO LONGRANGE PLANNING AND WANT TO KNOW WHEN THE CLINTON ADMINISTRATION WILL SUFFER ANOTHER BOUT OF INDIGESTION MARK DEC 1 ON YOUR CALENDAR THAT'S WHEN A POLITICAL BOMBSHELL IS SCHEDULED TO DROP ON MR CLINTON'S DESK IT WILL COME IN THE FORM OF A RECOMMENDATION FROM A BIPARTISAN COMMISSION CREATED AT THE BEHEST OF DEMOCRATIC SEN BOB KERREY OF NEBRASKA ON HOW TO CUT INTO THOSE JUICY ENTITLEMENT PROGRAMS THAT EVERYBODY LOVES AND HOW TO CHANGE THE WAY AMERICANS PAY TAXES TO FINANCE THEM CONSIDERING THAT THIS NOWOBSCURE COMMISSION WILL ADDRESS SUCH HOTBUTTON ISSUES AS SOCIAL SECURITY MEDICARE VETERANS' BENEFITS AND CONSUMPTION TAXES HERE'S AN EARLY GUESS OF WHAT WILL HAPPEN WHEN THIS BOMBSHELL HITS THE WHITE HOUSE WILL SAY NICE THINGS AND THEN QUIETLY WISH IT WOULD GO AWAY DEMOCRATS WILL SCREAM THAT THE FAMILY JEWELS ARE AT RISK CONGRESS WILL BLANCH AND THAT WILL BE A MISTAKE THIS MIGHT BE THE RIGHT TIME RIGHT PLACE AND RIGHT WAY TO FINALLY STOP THE HEMORRHAGING KNOWN AS ENTITLEMENTS SPENDING LIBERALS WHO LOVE GOVERNMENT AND CONSERVATIVES WHO HATE IT HAVE REASONS TO LISTEN VOTERS MIGHT EVEN APPRECIATE IT THE AMAZING THING IS THAT SO FEW PEOPLE HAVE EVEN NOTICED THIS COMING THE ENTITLEMENTS COMMISSION WAS CREATED ALMOST AS AN AFTERTHOUGHT TO LAST SUMMER'S BRUTAL BUDGET FIGHT LARGELY BY SEN KERREY WHO MAY HAVE THE NATION'S MOST AWKWARD RELATIONSHIP WITH THE CLINTON WHITE HOUSE SEN KERREY RAN AGAINST MR CLINTON FOR PRESIDENT IN A 1992 CAMPAIGN THAT LEFT BRUISED FEELINGS LAST YEAR HE CAST THE DRAMATIC VOTE THAT SPELLED VICTORY FOR THE CLINTON DEFICITCUTTING PLAN BUT NOT BEFORE PUBLICLY SUGGESTING THE PRESIDENT SHOW MORE GUTS IN ASKING AMERICANS TO SACRIFICE A LITTLE FOR FUTURE PROSPERITY TO WIN SEN KERREY'S VOTE HIS FELLOW DEMOCRATS OFFERED TO LET HIM CREATE A BUDGETCUTTING COMMISSION TO MAKE HIS POINTS ABOUT SACRIFICE SEN KERREY DECLINED BUT OVER TIME HE AND REPUBLICAN SEN JOHN DANFORTH OF MISSOURI BEGAN TALKING AND THE IDEA OF A BIPARTISAN COMMISSION TO LOOK SPECIFICALLY AT THE ENTITLEMENTS SPENDING MONSTER EMERGED SEN KERREY WENT TO PRESIDENT CLINTON WHO SIGNED ON A MOVE SOME DEMOCRATS THINK HE WILL REGRET SO NOW THE COMMISSION IS OFF AND RUNNING SENS KERREY AND DANFORTH ARE THE CHAIRMEN THIRTY OTHER MEMBERS HAVE BEEN APPOINTED 10 SENATORS 10 HOUSE MEMBERS AND 10 OUTSIDERS EIGHT FULLTIME STAFFERS ARE TOILING AWAY IN A SENATE OFFICE BUILDING AND FIVE MORE WILL BE HIRED THE CHAIRMEN HAVE BEEN CONDUCTING WHAT SEN DANFORTH CALLS KISSINGERLIKE SHUTTLE DIPLOMACY VISITING PRIVATELY WITH EACH COMMISSIONER TO FIND OUT WHAT EACH MIGHT ACCEPT IN JUNE THERE WILL BE A PUBLIC MEETING IN WASHINGTON FOLLOWED BY THREE MORE PUBLIC HEARINGS AROUND THE COUNTRY AN INTERIM REPORT IS DUE IN AUGUST AND FINALLY AFTER THE PASSIONS OF NOVEMBER ELECTIONS SUBSIDE A FINAL REPORT DEC 1 THE HOPE IS THAT THE COMMISSION CAN GIVE SOME POLITICAL COVER TO BOTH THE WHITE HOUSE AND CONGRESS THE THEORY IS THAT IF THE ODD PHILOSOPHICAL BEDFELLOWS ON THE COMMISSION RANGING FROM CONSERVATIVE SEN THAD COCHRAN OF MISSISSIPPI TO LIBERAL BUDGET EXPERT BOB GREENSTEIN CAN AGREE ON A PLAN EVERYBODY ELSE SHOULD BE ABLE TO SIGN ON BUT IF YOU THINK THIS WILL BE EASY LISTEN TO SEN KERREY HE SAYS THAT NOTHING WILL BE OFF THE TABLE FOR CONSIDERATION INCLUDING SOCIAL SECURITY BENEFITS AND THE TAX DEDUCTION FOR HOME MORTGAGE PAYMENTS AND WHEN HE HEARS WHINING ABOUT BENEFIT CUTS THIS VIETNAM WAR AMPUTEE REPLIES I LEFT A LEG IN VIETNAM THIS COUNTRY GIVES 19000 A YEAR AS A PENSION AND I'M GRATEFUL FOR THAT I DO NOT BELIEVE I'M ENTITLED TO THAT TO ENHANCE PRODUCTIVITY HE FAVORS SWITCHING TO A TAX SYSTEM WITH VERY CLEAR AND MUSCULAR AND NONREGULATORY INCENTIVES FOR SAVINGS SOUNDS LIKE A RECIPE FOR A CONSUMPTION TAX SO EVEN IF THE COMMISSION MANAGES TO AGREE THE TEMPTATION WILL BE TO BURY ITS REPORT MANY THINK DEFICIT CONCERNS ARE FADING AND THE CLINTON ADMINISTRATION EVINCES LITTLE ENTHUSIASM FOR ANOTHER DEFICITCUTTING FIGHT ROSS PEROT THE AVENGING ANGEL OF DEFICIT SPENDING IS SHRIVELING AS A POLITICAL FORCE BUT THOSE ARE SHORTSIGHTED CALCULATIONS CONSERVATIVES SHOULD WELCOME A CHANCE TO SWITCH AMERICA'S RESOURCES AWAY FROM MIDDLECLASS HANDOUTS TO MORE PRODUCTIVE INVESTMENTS LIBERALS WHO HAVE WATCHED THE SHRINKING OF ONE CLINTON INITIATIVE AFTER ANOTHER NATIONAL SERVICE HEALTH CARE WELFARE REFORM SHOULD REALIZE THAT FINANCING ACTIVIST GOVERNMENT TODAY REQUIRES FREEING UP RESOURCES ELSEWHERE AND VOTERS KNOW THERE'S STILL A DEFICIT PROBLEM WHEN THE WALL STREET JOURNAL AND NBC NEWS ASKED AMERICANS LAST MONTH TO NAME THE MOST IMPORTANT ECONOMIC ISSUE 33 CITED THE DEFICIT AS MANY AS CITED UNEMPLOYMENT THE DEFICIT MONSTER IS QUIETER BUT PEOPLE KNOW HE'S HIDING JUST INSIDE HIS CAVE 9404270111 940427 PENNZOIL SIGNS PACT TO BUY COENERCO FOR 225 MILLION HOUSTON PENNZOIL CO SAID IT HAD SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE COENERCO RESOURCES LTD IN A TRANSACTION VALUED AT 225 MILLION THE BOARDS AT BOTH COMPANIES APPROVED THE TRANSACTION AT SEPARATE MEETINGS HELD YESTERDAY BY THE END OF THIS WEEK PENNZOIL IN HOUSTON SAYS ITS PENNZOIL CANADA INC SUBSIDIARY WILL BEGIN A TENDER OFFER TO PURCHASE ALL COMMON SHARES OUTSTANDING OF COENERCO IN CALGARY CANADA FOR 860 CANDIAN DOLLARS A SHARE US626 THE UNIT WILL ALSO ACQUIRE ALL OF COENERCO'S 6 CONVERTIBLE SUBORDINATED DEBENTURES THE TENDER OFFER WILL BE OPEN FOR 30 CALENDAR DAYS UNLESS EXTENDED BY PENNZOIL 9404270110 940427 INTERNATIONAL GERMAN ECONOMY IS EXPECTED TO GROW 15 THIS YEAR BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN THE GERMAN ECONOMY IS EMERGING FROM RECESSION AND SHOULD GROW A MODEST 15 THIS YEAR ACCORDING TO A SEMIANNUAL SURVEY BY THE COUNTRY'S LEADING ECONOMIC RESEARCH INSTITUTES EVEN WITH THAT PROGNOSIS WHICH WAS SHARED BY FIVE OF THE SIX PARTICIPATING THINK TANKS THE EXPANSION WILL NOT SUFFICE TO DAMP GERMANY'S HIGH UNEMPLOYMENT IN FACT THE REPORT PROJECTS THAT A GOOD 400000 PEOPLE WILL LOSE THEIR JOBS THIS YEAR THAT WOULD PUSH OFFICIAL UNEMPLOYMENT TO A PAINFUL 99 A FULL PERCENTAGE POINT HIGHER THAN IT IS NOW MORE THAN A MILLION PEOPLE IN GOVERNMENTSUBSIDIZED RETRAINING AND JOBS PROGRAMS ARE NOT COUNTED IN THAT FIGURE FORECASTING A RISE IN PRODUCTION OF 1 IN THE WESTERN PART OF THE COUNTRY AND 75 IN FORMERLY COMMUNIST EASTERN GERMANY THE REPORT CONCEDED THE IMPROVEMENT IN THE ECONOMIC SITUATION CERTAINLY DOES NOT MEAN THAT THE SWITCHES HAVE BEEN THROWN FOR POWERFUL GROWTH IN THE WESTERN GERMAN ECONOMY THE EXPERTS BASED THEIR PREDICTION ON THE ASSUMPTION THAT THE BUNDESBANK WILL CONTINUE TO LOWER SHORTTERM INTEREST RATES WHICH THEY CONTEND COULD FALL TWO PERCENTAGE POINTS THE AUTHORS ALSO EXPECT THAT THE GERMAN MARK WILL SLIP AGAINST THE DOLLAR AND FOREIGN DEMAND WILL PICK UP SPURRING GERMAN EXPORTS IN BONN WHERE THE REPORT WAS RELEASED THE PREDICTION FOR EXPANSION WAS HAILED BY OFFICIALS IN CHANCELLOR HELMUT KOHL'S GOVERNMENT WHO HAVE BEEN STUDIOUSLY TALKING UP THE ECONOMY'S PROSPECTS IN RECENT WEEKS ECONOMICS MINISTER GUENTER REXRODT WENT SO FAR AS TO SAY THAT THE YEAR'S GROWTH COULD TURN OUT STRONGER THAN THE INSTITUTES PROJECTED BUT IF ANYTHING THE SURVEY WHICH IS COMMISSIONED BY THE GOVERNMENT UNDERLINED EXACTLY HOW DIFFICULT MR KOHL'S TASK OF WINNING REELECTION IN OCTOBER WILL BE POLLS SHOW THAT UNEMPLOYMENT IS CONSIDERED THE COUNTRY'S MOST PRESSING PROBLEM YET NO REVERSAL OF THE JOBLESS TREND IS EXPECTED UNTIL NEXT YEAR SO MR KOHL MUST CONVINCE VOTERS THAT THE SLOW GROWTH IS A HARBINGER OF THINGS TO COME EVEN THOUGH UNEMPLOYMENT ROLLS ARE LENGTHENING HIS TASK WILL BE EVEN MORE DIFFICULT IF THE ECONOMY FOLLOWS THE COURSE PROJECTED BY BERLIN'S GERMAN INSTITUTE FOR ECONOMIC RESEARCH THE ONLY THINK TANK TO DISSENT FROM THE MAIN REPORT WHICH WAS SUPPORTED BY INSTITUTES IN MUNICH HAMBURG KIEL HALLE AND ESSEN ARGUING THAT FALLING INCOMES WILL MEAN LOWER CONSUMPTION THE BERLIN EXPERTS EXPECT A MEAGER HALFPERCENTAGE POINT GROWTH WITH THE ECONOMY ONLY PICKING UP STEAM IN THE SECOND HALF OF THE YEAR 9404270109 940427 MANAGEMENT WHITE KNIGHTS ASKED TO SAVE COMPANIES FIND BOARDS ARE GETTING HARDER TO PLEASE BY JOANN S LUBLIN STAFF REPORTER OF THE WALL STREET JOURNAL CORPORATE LEADERS TAPPED TO FIX COMPANIES' TROUBLES ARE INCREASINGLY FINDING THEMSELVES IN TROUBLE CONSIDER ROBERT PALMER CHIEF EXECUTIVE OFFICER OF DIGITAL EQUIPMENT CORP SINCE THE FALL OF 1992 THE COMPUTER MAKER RECENTLY REPORTED A SURPRISINGLY LARGE LOSS FOR THE QUARTER ENDED APRIL 2 NOW SOME INSIDERS SAY THE COMPANY'S BOARD OF DIRECTORS IS GIVING MR PALMER ONE MORE QUARTER TO SHOW PROGRESS ON A NEW TWOYEAR TURNAROUND PLAN ALTHOUGH ONE PERSON CLOSE TO THE CHIEF EXECUTIVE DENIES SUCH A DEADLINE EXISTS MANY ACTIVIST BOARDS DEMAND QUICK RESULTS FROM A NEW CHIEF NOWADAYS AND PART COMPANY WITH THE LEADER IF THEY DON'T GET THEM OF 91 CHIEF EXECUTIVES CHOSEN BY MAJOR CORPORATIONS DURING 1993 ABOUT 21 HAVE FAILED TO SURVIVE THEIR FIRST YEAR IN OFFICE UP FROM ABOUT 11 IN THE YEARS BETWEEN 1988 AND 1993 SAYS EUGENE JENNINGS PROFESSOR EMERITUS OF BUSINESS MANAGEMENT AT MICHIGAN STATE UNIVERSITY I HAVE NEVER SEEN SUCH A VOLUME OF EARLY TERMINATIONS DR JENNINGS SAYS SOME BOARDS ARE GIVING A NEW CHIEF JUST THREE MONTHS TO TURN AROUND AN AILING COMPANY HE NOTES IN THE PAST NEWCOMERS HAD MORE CONGENIAL AND UNDERSTANDING BOARDS AND INVESTORS DIRECTORS ARE FORCING OUT UNDERPERFORMING NEW LEADERS FASTER BECAUSE INVESTORS WANT AN EASY FIX SAYS MICHAEL J BERTHELOT CHAIRMAN AND CHIEF EXECUTIVE OF TRANSTECHNOLOGY CORP A UNION NJ MAKER OF AEROSPACE AND INDUSTRIAL PRODUCTS THEY WANT IT FAST THEY WANT IT NOW AND THEY WANT IT CHEAP AND THEY DON'T WANT THEIR STOCK PRICE TO GO DOWN HE ADDS TWO MONTHS AFTER DIRECTORS OUSTED HIM AS ACTING PRESIDENT AND CEO IN AUGUST 1992 MR BERTHELOT WON A PROXY FIGHT FOR CONTROL OF THE TRANSTECHNOLOGY BOARD TRANS WORLD AIRLINES CERTAINLY HAD HIGH HOPES LAST JULY WHEN IT CHOSE SEASONED INDUSTRY EXECUTIVE WILLIAM R HOWARD AS ITS CHAIRMAN AND CEO THE FORMER HEAD OF PIEDMONT AVIATION INC A HEALTHY REGIONAL CARRIER MR HOWARD TOOK OVER TWA FOUR MONTHS BEFORE THE AIRLINE EMERGED FROM FEDERAL BANKRUPTCYLAW PROTECTION HE LASTED ONLY SIX MONTHS THE AIRLINE'S BOARD CONTROLLED BY TWA'S CREDITORS DIDN'T OBJECT WHEN MR HOWARD DECIDED TO RESIGN BOARD MEMBERS SAY DIRECTORS BELIEVED WE WEREN'T BEING MANAGED THE WAY A COMPANY IN FINANCIAL CRISIS SHOULD BE MANAGED RECALLS WILLIAM COMPTON A BOARD MEMBER AND HEAD OF THE PILOTS' UNION AT TWA MR COMPTON SAYS HE THINKS THAT MR HOWARD WANTED TO RUN THE COMPANY AS IF IT WERE A MORE FINANCIALLY SECURE COMPANY THAN IT WAS MR HOWARD WHO REMAINS A TWA CONSULTANT UNTIL YEAR END DIDN'T RETURN CALLS EGGHEAD INC THE NATION'S BIGGEST SOFTWARE RETAILER ALSO LOOKED FOR AN EXECUTIVE SAVIOR WHEN THINGS GOT ROUGH AMID FALLING PROFIT MARGINS STIFF RIVALRY FROM COMPUTER SUPERSTORES AND TURBULENCE AT THE TOP THE ISSAQUAH WASH CONCERN NAMED TIMOTHY TURNPAUGH PRESIDENT AND CEO IN FEBRUARY 1993 HE BECAME EGGHEAD'S FOURTH CEO IN AS MANY YEARS MR TURNPAUGH PREVIOUSLY A SENIOR EXECUTIVE FOR SEAFIRST BANK IN SEATTLE HAD LITTLE RETAIL EXPERIENCE LIKE HIS PREDECESSORS THE NEW EGGHEAD CHIEF NEVERTHELESS WAS SEEN AS THE ULTIMATE SAVIOR OF THE COMPANY BECAUSE HE BROUGHT A FRESH PERSPECTIVE RECALLS CHARLES HUMPHREY A GROUP VICE PRESIDENT FOR COMPUTER INTELLIGENCE INFOCORP A MARKETRESEARCH FIRM IN SANTA CLARA CALIF BUT EGGHEAD'S PROFIT PLUNGED BY NEARLY A HALF DURING THE FISCAL YEAR ENDED APRIL 3 1993 MR TURNPAUGH RESIGNED IN AUGUST MY SENSE IS THAT THE BOARD PUSHED HIM OUT THE DOOR SAYS MR HUMPHREY VAN BAKER AN ANALYST AT COMPUTER INTELLIGENCE SUGGESTS THAT EGGHEAD DIRECTORS WERE UNWILLING TO GIVE A LONG ENOUGH LEASH TO THE NEW CEO TO PROVE HIMSELF EGGHEAD REPLACED MR TURNPAUGH WITH ITS PRESIDENT TERENCE M STROM WHO HAD A STRONGER RETAILING BACKGROUND AND RONALD P ERICKSON ITS VICE CHAIRMAN THE PAIR ARE JOINTLY RUNNING THE COMPANY EGGHEAD OFFICIALS DIDN'T RETURN NUMEROUS CALLS MR TURNPAUGH NOW A MANAGEMENT CONSULTANT DECLINES TO COMMENT FACING DECREASED JOB SECURITY MORE TOP EXECUTIVES NOW INSIST ON INCREASED COMPENSATION BEFORE TAKING OVER A PROBLEMPLAGUED COMPANY OUTSIDERS COMMAND THE BIGGEST PAY PACKAGES FOR INSTANCE TWOTHIRDS OF OUTSIDE CEOS HIRED IN 1993 RECEIVED A GUARANTEED BONUS FOR AT LEAST ONE YEAR COMPARED WITH 47 IN THE YEARS BETWEEN 1988 AND 1993 REPORTS EXECUTIVE COMPENSATION REPORTS A FAIRFAX STATION VA NEWSLETTER WHEN DEAN G GROUSSMAN AGREED TO BECOME THE HEAD OF ZALE CORP IN JULY 1992 THE FORMER PRESIDENT AND CHIEF EXECUTIVE OF CANADIAN TIRE INC WAS OFFERED A 250000 FIRSTYEAR BONUS A 650000 ANNUAL SALARY A 27 MILLION SEVERANCE PACKAGE IF HE WAS TERMINATED AND OTHER PERQUISITES AT THAT TIME THE LARGE JEWELRY RETAILER WAS IN CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS A BANKRUPTCYCOURT JUDGE SLICED ALMOST 35 MILLION FROM MR GROUSSMAN'S PROPOSED COMPENSATION PACKAGE DELAYING HIS DEBUT UNTIL SEPTEMBER THE NEW ZALE CHIEF STEERED THE DALLAS COMPANY THROUGH ITS REORGANIZATION DRAFTED A LONGTERM STRATEGY AND EXPECTED TO KEEP LEADING THE RETAILER A FORMER COLLEAGUE SAYS BUT THE BOARD'S COMPOSITION CHANGED AND THE REVAMPED BOARD SAW MR GROUSSMAN DIFFERENTLY TWO BUSINESS DAYS AFTER ZALE EMERGED FROM BANKRUPTCY LAST SUMMER MR GROUSSMAN WAS OUT OF A JOB HE DECLINES TO COMMENT WE FELT THERE WAS A DIFFERENT KIND OF LEADERSHIP REQUIRED SAYS RICHARD MARCUS A ZALE OUTSIDE DIRECTOR AND FORMER HEAD OF RETAILER NEIMANMARCUS GROUP WE REALLY WERE LOOKING FOR A MUCH MORE ROBUST HANDSON AND VIBRANT LEADERSHIP HE HASTENS TO ADD I DON'T MEAN TO SAY THAT DEAN DIDN'T HAVE THOSE THINGS YET MR MARCUS ISN'T BOTHERED BY THE SPEED WITH WHICH CERTAIN COMPANIES PLAY MUSICAL CHAIRS THESE DAYS BOARDS ARE WORKING HARDER HE EXPLAINS IF SOME CEOS FEEL A PINCH OF THAT THAT'S TOUGH BOARDS ALSO HAVE LEARNED WHAT HAPPENS IF YOU DON'T WORK HARD HE CONTINUES YOU GET COMPANIES THAT DON'T SUCCEED AND YOU GET ACTIONS AGAINST THE BOARD THAT SOMETIMES CAN BE PAINFUL IF NOT RUINOUS MR GROUSSMAN'S SUCCESSOR IS ROBERT J DINICOLA THE FORMER HEAD OF A FEDERATED DEPARTMENT STORES INC DIVISION THE 46YEAROLD EXECUTIVE STARTED WORK AT ZALE LAST WEEK HIS PAY PACKAGE INCLUDES A GUARANTEED FIRSTYEAR BONUS PLUS A SIGNING BONUS HE DECLINES TO DIVULGE THE AMOUNTS INVOLVED MR DINICOLA SAYS HE ACCEPTED THE ZALE POST PARTLY BECAUSE HE AND THE BOARD AGREED ABOUT THE NEED FOR LONGTERM STRATEGIES DIRECTORS AND SHAREHOLDERS DESERVE TO SEE STEADY PROGRESS MR DINICOLA NOTES BUT IN THE FIERCELY COMPETITIVE RETAILING WORLD WILL STEADY PROGRESS SATISFY ZALE DIRECTORS OBSERVES MR MARCUS BOB AND HIS TEAM HAVE THEIR WORK CUT OUT FOR THEM 9404270108 940415 MAKING INROADS JAPAN'S IMPORTS RISE AND US COMPANIES ARE GAINING NEW SALES THE STRONG YEN AND A SURGE IN COMPETITIVENESS PRY OPEN THE MARKET A BIT BARGAIN BEER AND CHEAP PCS BY WALL STREET JOURNAL STAFF REPORTERS MICHAEL WILLIAMS JENNIFER CODY AND DAVID P HAMILTON TOKYO IT'S APRIL AND AS JAPANESE HAVE DONE FOR CENTURIES MASAHIRO NAKAJIMA IS VIEWING CHERRY BLOSSOMS NEAR THE IMPERIAL PALACE AND GUZZLING A COLD BUDWEISER AN AMERICAN BEER I NEVER NOTICED SAYS THE CITY PLANNER LOOKING AT THE RED WHITE AND BLUE CAN BUD HE SAYS IS VERY POPULAR HERE SURPRISING AS IT MIGHT SEEM JAPAN THESE DAYS IS SUCKING IN IMPORTS AND SOME US SUPPLIERS ARE AMONG THE BIG WINNERS COMPANIES RANGING FROM GENERAL MOTORS CORP TO SUN MICROSYSTEMS INC TO TOWER RECORDS INC ARE GAINING MARKET SHARE ON JAPAN INC'S HOME TURF EXPORTING TO THIS NOTORIOUSLY TOUGH MARKET STILL IS FRAUGHT WITH DIFFICULTIES OF COURSE AND JAPAN'S TRADE SURPLUS AGAINST THE US REMAINS VAST BUT IN IMPORTANT AREAS THE US IS GAINING MOMENTUM SELLING TO JAPAN PRODUCTS RANGING FROM HOUSEHOLD GOODS TO GIANT POWER GENERATORS THOSE INCREASED SALES MAY PORTEND A SHIFTING ECONOMIC RELATIONSHIP BETWEEN THE COUNTRIES AFTER DIPPING SLIGHTLY IN 1992 ALONG WITH THE JAPANESE ECONOMY THE UNIT VOLUME OF US EXPORTS TO JAPAN BEGAN RISING LAST SPRING AND HAS ACCELERATED SINCE THEN IT IS RUNNING ABOUT 60 GREATER THAN IN THE MID1980S ACCORDING TO DATA FROM JAPAN'S ECONOMIC PLANNING AGENCY IN FEBRUARY IT WAS UP 10 FROM A YEAR EARLIER AND THE TREND SHOWS NO SIGNS OF ABATING IN DOLLAR TERMS JAPAN SAYS ITS US IMPORTS ROSE 57 LAST YEAR TO 552 BILLION SECOND ONLY TO CANADA AMONG US CUSTOMERS US GOVERNMENT PRESSURE IS HELPING BY GETTING JAPAN TO LOWER BARRIERS TO SUCH US GOODS AS BEEF AND CELLULAR PHONES AND BY PRODDING JAPANESE MULTINATIONALS LIKE TOYOTA MOTOR CORP TO BUY AMERICAN THE MARKETOPENING PUSH HAS INTENSIFIED WITH THE CLINTON ADMINISTRATION IN FACT ITS TOUGH LINE MAY HAVE HASTENED THE FALL OF PRIME MINISTER MORIHIRO HOSOKAWA BUT MANY JAPANESE ECONOMISTS BUSINESSMEN AND CONSUMERS ATTRIBUTE THE CHANGES MAINLY TO ECONOMICS RATHER THAN POLITICS THEY CITE THE INCREASED COMPETITIVENESS OF US INDUSTRY AND THE HELP FROM A STRONG YEN WHICH MAKES AMERICAN PRODUCTS CHEAPER IN ECONOMICALLY SLUGGISH AND NEWLY PRICECONSCIOUS JAPAN THE CLINTON ADMINISTRATION'S PUNCH IN THE MOUTH TO HOSOKAWA CAME TOO LATE ARGUES PAUL SUMMERVILLE ASIAN RESEARCH DIRECTOR AT LEHMAN BROTHERS IN TOKYO THE MARKETS HAVE ALREADY TAKEN OVER TO BE SURE JAPAN'S TRADE SURPLUS WITH THE US MEASURED IN DOLLARS IS STILL RISING IT TOTALED 59 BILLION LAST YEAR BY AMERICA'S COUNT THE MAIN REASON THE SAME STRONG YEN THAT HELPS US EXPORTS TO JAPAN ALSO INFLATES THE DOLLAR VALUE OF JAPAN'S SURPLUS IN ADDITION IT DISCOURAGES DIRECT INVESTMENT IN JAPAN WHICH EVENTUALLY COULD NARROW THE GAP MOREOVER JAPAN STILL MAINTAINS MANY TRADE BARRIERS SUCH AS REGULATIONS AND INFORMAL CARTELS THAT FRUSTRATE FOREIGN COMPANIES BY ONE ESTIMATE REMOVING ALL OF THE BARRIERS COULD INCREASE US GOODS EXPORTS TO JAPAN BY 9 BILLION TO 18 BILLION ANNUALLY IF THE ISSUE IS WHETHER JAPAN IS BUYING MORE FROM THE WORLD AND THE US CERTAINLY THE ANSWER IS YES SAYS A US EMBASSY OFFICIAL IN TOKYO THERE HAS BEEN MODEST PROGRESS IN MAKING MARKETS MORE OPEN BUT THERE'S STILL A LONG WAY TO GO EVEN SO MANY OBSERVERS CONTEND THAT THE US MAY HAVE A SIZABLE TRADE DEFICIT WITH JAPAN FOR THE INDEFINITE FUTURE BECAUSE OF THE TWO NATIONS' DIFFERING SAVINGS RATES AND INDUSTRIAL STRUCTURES THE IMBALANCE IN FACT MAY LARGELY REFLECT US DEPENDENCE ON JAPANESE CAPITAL TO FINANCE ITS INVESTMENTS AND GOVERNMENT DEFICITS HOWEVER THE INCREASE IN US EXPORTS EVEN AT A TIME WHEN JAPAN'S ECONOMY IS WEAK OFFERS THE TANTALIZING PROSPECT OF DENTING THE DEFICIT JAPAN'S NOMURA RESEARCH INSTITUTE EXPECTS THE BILATERAL MERCHANDISETRADE GAP TO CONTRACT 5 IN THE JAPANESE FISCAL YEAR ENDING NEXT MARCH SENSING OPPORTUNITY US COMPANIES LARGE AND SMALL ARE ATTACKING THE JAPANESE MARKET WITH NEW GUSTO WE DON'T SEE ANY BARRIERS TO ALLOWING US TO SELL SAYS VINCENT NAIMOLI CHAIRMAN OF HARVARD INDUSTRIES INC A FARMINGTON HILLS MICH COMPANY THAT EXPORTS SOPHISTICATED MAGNESIUM ENGINE PARTS TO TOYOTA HE EXPECTS SIGNIFICANT GROWTH FOR HIS BUSINESS IN JAPAN IN COMING YEARS TWOTHIRDS OF THE BILATERAL GAP IS IN AUTOS AND AUTO PARTS LAST YEAR THE US BIG THREE SOLD JUST 19335 VEHICLES IN JAPAN WHILE JAPANESE CAR AND LIGHTTRUCK EXPORTS TO THE US TOTALED 172 MILLION TOTAL IMPORTS OF AUTOS MADE IN THE US ROSE 38 LAST YEAR BUT STILL AMOUNTED TO A RELATIVELY MODEST 11 BILLION CHRYSLER CORP HAS BEGUN RACKING UP TRIPLEDIGIT SALES INCREASES FOR ITS LOWERPRICED JEEP CHEROKEE ALBEIT FROM A TINY BASE IT SOLD 4000 IN JAPAN LAST YEAR IT EXPECTS ITS SALES OF CHEROKEES AND OTHER JEEPS TO ABOUT DOUBLE THIS YEAR TO 10000 SUCH SALES ARE PACING AN INCREASE IN MARKET SHARE HERE FOR CARS MADE IN THE US BY BOTH JAPANESE AND AMERICAN MANUFACTURERS IN ADDITION GM HAS BEGUN EXPORTING DELCO RADIOS TO THE LAND OF THE TRANSISTOR THE RADIOS ARE INSTALLED ON SOME TOYOTAS AIMED AT THE US MARKET IN SOPHISTICATED ITEMS SUCH AS AIRLINERS WHICH JAPAN DOESN'T MAKE AND CHEMICALS WHERE THE US IS MUCH MORE COMPETITIVE THE US HAS LONG RUN LARGE SURPLUSES HOWEVER IN AREAS SUCH AS HEAVY POWER EQUIPMENT AND SEMICONDUCTORS EVIDENCE THAT THE US IS BEGINNING TO CLOSE THE NOTORIOUS MANUFACTURING GAP IS INCREASING AND IN SERVICES SUCH AS TRAVEL AND PATENT ROYALTIES WHICH DON'T SHOW UP IN MERCHANDISETRADE NUMBERS JAPAN REPORTS A 19 BILLION BILATERAL DEFICIT THE STAUNCHEST ALLIES OF AMERICAN EXPORTERS ARE THE PRESSURES RESHAPING JAPAN'S DOMESTIC ECONOMY SLOW GROWTH AND HIGH COSTS ARE PUSHING CONSUMERS AND COMPANIES TO HUNT FOR CHEAPER PRODUCTS AND ARE OPENING UP NEW DISTRIBUTION ROUTES FOR IMPORTS THE STRONG YEN TOO HAS MADE MANY US GOODS AN IRRESISTIBLE BARGAIN ECONOMISTS SAY US GAINS WOULD CONTINUE THOUGH MORE SLOWLY EVEN IF THE YEN WEAKENED 20 BUT AMERICAN BUSINESSES ARE ALSO EMPLOYING TACTICS LEARNED FROM JAPAN'S SUCCESS IN THE US AMERICAN PERSONALCOMPUTER MAKERS FOR EXAMPLE HAVE FLOODED THE MARKET WITH CUTRATE PCS DEMONSTRATING THAT FOREIGNERS CAN MAKE INROADS AGAINST ENTRENCHED COMPETITORS EVEN IN MARKETS CONSIDERED STRATEGIC BY THE JAPANESE AND WITHOUT HELP FROM UNCLE SAM NOW THE JAPANESE PRESS IS WARNING OF AN AMERICAN IMPORT INVASION IN LAST WEEK'S NIKKEI BUSINESS MAGAZINE A BIRD'SEYE PHOTO OF TOKYO IS DOCTORED TO SHOW A GREEN IRON TRIANGLE AROUND THE IMPERIAL PALACE THE CORNERS ARE THREE AREAS STUDDED WITH OFFICES OF US MULTINATIONALS LITTLE DETROIT SILICON TOWN AND INTERNATIONAL FINANCE CENTER AMERICAN SOFTWARE POWERHOUSES SUCH AS MICROSOFT CORP LOTUS DEVELOPMENT CORP AND BORLAND INTERNATIONAL INC HAVE SEIZED MORE THAN 50 OF JAPAN'S PCSOFTWARE MARKET WITHOUT A TRACE OF IRONY SOME JAPANESE COMPANIES NOW HOWL ABOUT UNFAIR COMPETITION MAJOR US SOFTWARE MAKERS GIVE MORE IMPORTANCE TO GAINING MARKET SHARE THAN PROFITS COMPLAINS TAKASHI INAGAKI A SPOKESMAN FOR JUSTSYSTEM CORP JAPAN'S LARGEST PCSOFTWARE SUPPLIER THE PRESSURE IS INCREASING EVEN IN SUCH JAPANESE BASTIONS AS AUTO PARTS IN A SQUEAKYCLEAN GARAGE OUTSIDE TOKYO PHILIP AUSTIN GM JAPAN'S AUTOPARTS VICE PRESIDENT SHOWS OFF TOYOTA VEHICLES THAT HIS MECHANICS HAVE EQUIPPED WITH GM PARTS A CAR WITH GM SEAT COVERS A SPORTS TRUCK RETROFITTED WITH GM WIRE THESE DEMO CARS HEADED FOR TOYOTA HEADQUARTERS ARE THE TROJAN HORSES IN MR AUSTIN'S CAMPAIGN TO BREACH JAPAN'S TIGHTKNIT SUPPLIER NETWORKS GM RECENTLY JOINED A TOYOTA SUPPLIER ASSOCIATION AND NAMED A FULLTIME TOYOTA CUSTOMER MANAGER WHOSE JOB INCLUDES PLAYING GOLF WITH TOYOTA ENGINEERS GM'S TACTICS SUGGEST THAT MANY US COMPANIES ARE BECOMING SERIOUS ABOUT SELLING IN JAPAN AND PARTLY REBUT JAPANESE CRITICISM THAT THE AMERICANS DON'T TRY HARD ENOUGH LAST YEAR GM EXPORTED 250 MILLION OF SUCH PARTS AS SHOCK ABSORBERS AND RADIATORS TO JAPAN UP 25 FROM 1992 BY 1998 GM HOPES TO SELL 2 BILLION OF PARTS TO JAPANESE ASSEMBLERS WORLDWIDE INCLUDING 450 MILLION IN JAPAN IT HAS BEEN A LONG SLOG THOUGH MR AUSTIN SET UP GM'S PARTS OPERATION HERE 11 YEARS AGO US PARTS STILL HAVE JUST AN ESTIMATED 1 SHARE HELPING HIM IS TADAYOSHI IIMURA WHO SPEARHEADED THE DELCO SALE TO TOYOTA A FORMER TOYOTA ENGINEER MR IIMURA KNEW THE JAPANESE AUTO MAKER IS OBSESSED WITH ITS STANDING IN THE JD POWER & ASSOCIATES QUALITY RATINGS HE ALSO KNEW THAT GM'S DELCO RADIOS OUTSCORED TOYOTA'S IN THOSE SURVEYS AND USED THAT TO WIN ORDERS THERE IS AND THERE WILL BE A SHIFT OF PROCUREMENT TO GM PARTS SAYS KOICHIRO NOGUCHI TOYOTA'S GENERAL MANAGER FOR INTERNATIONAL PURCHASING CERTAIN US MAKERS OF CONSUMER PRODUCTS HEAR CASH REGISTERS RINGING TOO DETROITBASED STROH BREWERY CO SAYS IT SHIPPED ONE MILLION CASES OF BEER TO JAPAN IN THE YEAR ENDED MARCH 31 UP FROM 350000 CASES A YEAR EARLIER AND VIRTUALLY NONE THREE YEARS AGO IT EXPECTS ITS JAPAN SALES TO RISE 50 TO 100 THIS FISCAL YEAR SOME IN THE BEER INDUSTRY SAY FOREIGN BREWERS COULD EVENTUALLY GRAB A 10 SHARE OF JAPAN'S BEER MARKET UP FROM LESS THAN 2 TODAY DAVID JENSEN A SMITH BARNEY SHEARSON ANALYST ESTIMATES THAT US BREWERS SHIP BEER TO JAPAN PRICED AS LOW AS 19 CENTS PER 12OUNCE CAN VS THE 71 CENTS CHARGED BY JAPANESE MAKERS HE BELIEVES THAT THE AMERICANS COULD UNDERCUT THE JAPANESE EVEN IF THE DOLLAR STRENGTHENED TO 200 YEN FROM ABOUT 103 YEN TODAY SOME JAPANESE ARE BUYING AMERICAN BECAUSE IT'S CHEAP NOT CHIC IN HIS TINY TOKYO LIQUOR SHOP NORIO SUZUKI SELLS SUCH STROH BRANDS AS SCHLITZ AND OLD MILWAUKEE FOR 932 A SIXPACK 28 LESS THAN DOMESTIC BEER HE GETS HIS CUTPRICE SUDS FROM SHIGEMATSU & CO AN OSAKA IMPORTER THAT OPENED JAPAN FOR STROH IN A GUERRILLA MARKETING CAMPAIGN IN TURN THE IMPORTER'S MANAGING DIRECTOR KEISABURO SHIGEMATSU CHOPS OUT LAYERS OF MIDDLEMEN BY FAXING FLIERS DIRECTLY TO RETAILERS AND BY SELLING IN LOTS OF 50 CASES TURNING DOWN COSTLY SINGLECASE ORDERS SOME CONSUMERS ARE CUTTING OUT THE GOBETWEENS ALTOGETHER IN HER CRAMPED TOKYO APARTMENT NORIKO TAKAHASHI PORES OVER A CATALOG FROM OREGONBASED HANNA ANDERSSON CORP WHILE HER TWOYEAROLD DAUGHTER NAPS IN THE NEXT ROOM THIS PAGE HAS BEEN VERY POPULAR WITH MY FRIENDS SHE SAYS POINTING TO A PHOTO OF BLOND BABIES NATTILY DECKED OUT IN PURPLE AND GOLD OUTFITS YOU CAN'T FIND THESE STYLES AND COLORS IN JAPAN GUN DENHART HANNA ANDERSSON'S CHIEF EXECUTIVE SAYS HER COMPANY SHIPPED MORE THAN 1 MILLION OF CLOTHING TO JAPAN LAST YEAR AND EXPECTS TO DOUBLE THAT THIS YEAR ONE CUSTOMER WROTE TO TELL ME THEY SAY JAPANESE COMPANIES ARE INVADING THE US MARKET BUT I SAY HANNA IS INVADING MY WARDROBE' SHE SAYS WITH A LAUGH THOSE CLOSETS ARE GETTING CROWDED PATAGONIA EDDIE BAUER AND LANDS' END ARE BEEFING UP OPERATIONS HERE LL BEAN HAD 27 MILLION IN JAPANESE MAILORDER SALES IN 1992 AND PLANS TO OPEN A THIRD STORE HERE THIS FALL ALL OF OUR US COMPETITORS ARE RIGHT ON OUR TAILS SAYS RICHARD LESLIE BEAN'S INTERNATIONAL DIRECTOR OVERALL US EXPORTS OF CLOTHING AND ACCESSORIES TO JAPAN THE MINISTRY OF FINANCE SAYS ROSE 52 LAST YEAR TO 860 MILLION CANNY AMERICAN RETAILERS SUCH AS TOWER RECORDS OF SACRAMENTO CALIF ARE SELLING THE JAPANESE NOT ONLY US GOODS BUT ALSO A WHOLE NEW SHOPPING CULTURE THE CLOSELY HELD COMPANY'S THREESTORY STORE IN TOKYO'S TRENDY SHIBUYA DISTRICT IS BLOWING AWAY THE NOTION THAT SUCCESS HERE REQUIRES COPYING JAPANESE HABITS AND TASTES TOWER'S AMERICANMADE COMPACT DISKS ARE MORE POPULAR THAN MANY JAPANESE IMPRINTS OF THE SAME ALBUMS THE IMPORTS ARE 20 CHEAPER A BARGAIN THAT MORE THAN MAKES UP FOR THE ABSENCE OF JAPANESELANGUAGE COVER NOTES AND PACKAGING TOWER DISPLAYS ALBUMS FACEOUT IN CONTRAST TO SMALLER STORES THAT CRAM IN DISKS LIKE BOOKS ON A SHELF ENTHUSIASTIC STAFF HELP BY ANSWERING QUESTIONS SUCH DETAILS PLEASE RIE ISHIDA AN 18YEAROLD WHO BUYS UP TO FOUR CDS A MONTH AT TOWER THE FEELING IS GOOD HERE SHE SHOUTS OVER A THROBBING DANCE TUNE OTHER US COMPANIES HAVE PARLAYED THEIR TECHNOLOGICAL STRENGTH INTO BIG SALES IN THE EARLY 1980S FOR INSTANCE GENERAL ELECTRIC CO FINALLY WON AN ORDER FOR ADVANCED GENERATORS FROM TOKYO ELECTRIC POWER CO ONE OF THE WORLD'S LARGEST UTILITIES NOW GE IS THE LARGEST SUPPLIER OF SUCH GENERATORS IN JAPAN BEATING OUT COMPANIES SUCH AS TOSHIBA CORP AND HITACHI LTD TEPCO IS ITS BIGGEST CUSTOMER JAPANESE COMPANIES JUST CAN'T MAKE THOSE GENERATORS SAYS AKIRA ARAI A TEPCO EXECUTIVE GENERAL MANAGER GE HAS A VERY JAPANESESTYLE COMPETITIVE ADVANTAGE LEVERAGING SKILLS HONED IN ITS JETENGINE OPERATIONS AND APPLYING THEM TO POWER TURBINES MUCH LIKE A JAPANESE KEIRETSU INDUSTRIAL GROUP THE GOING WASN'T ALWAYS SMOOTH ONCE MR ARAI RECALLS A GE GENERATOR BROKE DOWN AND A STANDOFF DEVELOPED WHEN GE ENGINEERS WANTED TO TAKE ONLY THE DEFECTIVE PART BACK TO THE FACTORY FOR REPAIR INSTEAD OF REMOVING THE ENTIRE MACHINE FOR TESTS AS IS CUSTOMARY HERE BUT AFTER DAYS OF TALKS GE AGREED TO TAKE BACK THE ENTIRE GENERATOR WE NOW UNDERSTAND ONE ANOTHER MR ARAI SAYS AS SIGNIFICANT AS IMPORTS OF PRODUCTS ARE IMPORTS OF AMERICAN IDEAS JAPAN'S MAJOR CONSUMERELECTRONICS AND SEMICONDUCTOR MAKERS HAVE STAKED THEIR BEST HOPES FOR FUTURE HIT PRODUCTS ON US DESIGNS AND TECHNOLOGY SO PERVASIVE IS JAPANESE DEPENDENCE ON US IDEAS RANGING FROM MICROPROCESSOR DESIGNS TO APPLE COMPUTER INC'S NEWTON POCKET COMPUTER THAT SOME JAPANESE EXECUTIVES ARE WARNING THAT THEIR COMPANIES RISK BECOMING SUBCONTRACTORS TO US RIVALS IN THE PAST WIDESPREAD LICENSING OF US TECHNOLOGY HAS TENDED TO BUILD UP JAPANESE COMPETITORS AND ELIMINATE THE US TECHNOLOGICAL LEAD THESE DAYS HOWEVER MOST US COMPANIES ARE KEEPING A MUCH TIGHTER GRIP ON THEIR IDEAS MAKING IT HARDER FOR THE JAPANESE TO CATCH UP BY COPYING USBASED BIOTECH COMPANIES FOR EXAMPLE HAVE RETAINED RIGHTS TO THE BESTSELLING BIOTECH DRUGS IN JAPAN OTHERS SUCH AS SUN MICROSYSTEMS HAVE LICENSED THEIR TECHNOLOGY WIDELY AND STILL REAP HUGE REWARDS SUN BROUGHT ITS COMPUTER WORKSTATIONS IN THE MID1980S TO JAPAN AND SIGNED UP FUJITSU LTD AS A KEY PARTNER FUJITSU NOT ONLY MADE CHIPS FOR THE COMPUTERS BUT ALSO SLAPPED ITS BRAND ON SUN MACHINES AND DISTRIBUTED THEM AS ITS OWN A TACTIC USED BY AMERICAN COMPANIES IN THE 1970S DURING THE JAPANESE ELECTRONICS ONSLAUGHT YET SUN HAS EMERGED TRIUMPHANT AND IS UNWORRIED BY FUJITSU'S RECENT INTRODUCTION OF ITS OWN SUN CLONES IN 1993 SUN CAPTURED A 27 SHARE OF THE ROUGHLY 5 BILLION WORKSTATION MARKET IN JAPAN UP FROM 24 THE YEAR BEFORE ACCORDING TO INTERNATIONAL DATA CORP FUJITSU'S SHARE MEANWHILE SLIPPED TO 14 FROM 15 WHAT PROBABLY ENSURES THAT THE US EXPORT GROWTH WILL CONTINUE IS THAT PLENTY OF JAPANESE ARE GETTING RICH BY RIDING IT FURNITURE MERCHANT KATSUHISA OTSUKA IS ONE OF THEM AT A RECENT INDUCTION CEREMONY FOR NEW EMPLOYEES OF OTSUKA KAGU LTD HE WELCOMED THREE RUDDYFACED AMERICANS REPRESENTATIVES OF THE FURNITURE MAKERS THAT HE CHOSE TO HELP HIM SUPPLY JAPAN'S LARGEST FURNITURE STORE A US DIPLOMAT PRAISED MR OTSUKA FOR IMPORTING CHAIRS AND TABLES FROM NORTH CAROLINA PLEASE IMPORT MORE HE SAID MR OTSUKA AIMS TO PLEASE JAPANESE CONSUMERS WANT FOREIGN PRODUCTS HE SAYS THIS IS A COMPANY OF THE FUTURE TOWER RECORDS INC HAD 1225 MILLION IN SALES IN JAPAN FOR THE YEAR ENDED APRIL 30 1993 IN A PAGEONE ARTICLE APRIL 15 ABOUT THE RISE IN JAPAN'S IMPORTS THE TIME PERIOD WAS MISSTATED AS LAST YEAR 9404270107 940427 TECHNOLOGY & HEALTH LILLY'S PROZAC IS CLEARED BY FDA TO TREAT BULIMIA BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ELI LILLY & CO'S CONTROVERSIAL DRUG PROZAC GOT ANOTHER ENDORSEMENT THIS TIME FOR TREATMENT OF THE EATING DISORDER KNOWN AS BULIMIA A FOOD AND DRUG ADMINISTRATION ADVISORY COMMITTEE VOTED UNANIMOUSLY TO RECOMMEND APPROVAL OF THE HOTSELLING ANTIDEPRESSANT FOR PATIENTS SUFFERING FROM BULIMIA A DISORDER CHARACTERIZED BY BINGE EATING AND SELFINDUCED VOMITING THE FDA USUALLY FOLLOWS ADVISORYPANEL RECOMMENDATIONS THE ACTION YESTERDAY WAS THE THIRD TIME THAT THE DRUG WAS JUDGED SAFE AND EFFECTIVE BY FDA PANELS LILLY OFFICIALS NOTED THAT BOLSTERS THE COMPANY'S CASE THAT THE DRUG DOESN'T INDUCE SUICIDAL OR HOSTILE BEHAVIOR AS SOME CRITICS HAVE CHARGED THE DRUG PREVIOUSLY WAS APPROVED FOR TREATMENT OF CLINICAL DEPRESSION AND OBSESSIVECOMPULSIVE DISORDER AND IT HAS BEEN APPROVED IN 17 COUNTRIES FOR THE TREATMENT OF BULIMIA IT WOULD BE THE FIRST DRUG CLEARED BY THE FDA FOR THAT PURPOSE LILLY BASED IN INDIANAPOLIS ESTIMATES THAT THERE ARE ONE MILLION AND PERHAPS AS MANY AS THREE MILLION BULIMIA SUFFERERS IN THE US COMPANY OFFICIALS WOULDN'T PROVIDE POTENTIAL SALES ESTIMATES BUT HEMANT SHAH A PHARMACEUTICAL ANALYST FOR HKS & CO AN INVESTMENT RESEARCH FIRM IN WARREN NJ SAID THAT SALES TO PEOPLE WITH BULIMIA COULD MAKE A SUBSTANTIAL CONTRIBUTION TO PROZAC SALES GROWTH PROZAC SALES TOTALED ABOUT 12 BILLION LAST YEAR HE SAID AND ARE EXPECTED TO RISE THIS YEAR TO 13 BILLION BECAUSE PROZAC IS ALREADY APPROVED FOR OTHER USES DOCTORS ALREADY MAY PRESCRIBE THE DRUG FOR THE EATING DISORDER BUT IF THE AGENCY APPROVES PROZAC SPECIFICALLY FOR BULIMIA THE COMPANY WOULD BE ABLE TO MARKET IT FOR THAT DURING THE PUBLIC SESSION OF THE ADVISORY COMMITTEE MEETING NO ONE OBJECTED TO THE EXPANDED USE OF PROZAC BUT THE CITIZENS COMMISSION ON HUMAN RIGHTS WHICH WAS FOUNDED BY THE CHURCH OF SCIENTOLOGY AND IS A LONGTIME FOE OF PROZAC ISSUED A STATEMENT SAYING THAT APPROVING THIS DRUG FOR ANY MORE PSYCHIATRIC CONDITIONS WOULD BE YET ANOTHER BLUNDER IN THE HISTORY OF THE FDA'S INAPPROPRIATE ACTIONS CONCERNING PROZAC JEAN RUBEL PRESIDENT OF ANOREXIA NERVOSA AND RELATED EATING DISORDERS INC A GROUP BASED IN EUGENE ORE SAID THAT WHILE PROZAC ISN'T A MAGIC BULLET FOR THE PEOPLE FOR WHOM IT WORKS IT'S TREMENDOUS 9404270106 940427 TEXAS JOURNAL IF YOU COULD REALLY USE A DRINK YOU'VE COME TO THE RIGHT PLACE BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL LOOKING FOR A PLACE TO PARTY LOOK NO FURTHER A NEW STUDY SHOWS THAT TEXAS IS THE TOP SPOT IN THE COUNTRY FOR BARS BASED ON THE NUMBER OF DRINKING ESTABLISHMENTS AS A PERCENTAGE OF PEOPLE IN THE LABOR FORCE NINE OF THE TOP 10 RANKINGS ALL WENT TO TEXAS COMMUNITIES WITH DOWNTOWN SAN ANTONIO HEADING THE LIST FOLLOWING THE ALAMO CITY WERE THE STEMMONSLOVE FIELD AREA IN DALLAS DOWNTOWN AUSTIN AND TWO SEPARATE RETAIL MALL CORRIDORS IN HOUSTON ROUNDING OUT THE LIST THE TRENDY TURTLE CREEK/OAK LAWN AREA IN DALLAS DOWNTOWN FORT WORTH AND TWO HOUSTON SUBURBAN AREAS BREAKING THE TEXAS SWEEP AT NUMBER 10 WAS THE CAMELBACK CORRIDOR IN PHOENIX I HAVE A HIGH LEVEL OF CONFIDENCE IN THAT PARTICULAR DATA BASED ON PERSONAL EXPERIENCE SAYS JOEL GARREAU THE WASHINGTON DC WRITER WHO DID THE STUDY I WENT TO HOUSTON ONCE FOR A SATURDAY NIGHT PARTY AND I GOT BACK ON TUESDAY MR GARREAU CITES SEVERAL REASONS WHY TEXAS COMMUNITIES NEARLY SHUT OUT THE REST OF THE COUNTRY IN THE STUDY WHICH USES INFORMATION FROM A DATABASE OF 227 DOWNTOWNS AND EDGE CITIES SUBURBAN JOB AND POPULATION CENTERS THAT OFTEN RIVAL MAJOR CITIES IN TERMS OF SIZE AND AMENITIES IN SAN ANTONIO FOR INSTANCE THE CITY BOASTS A HUGE TOURISM INDUSTRY AND IN AUSTIN THE BARTOEMPLOYEE RATIO IS PROBABLY BOOSTED BY THE LARGE NUMBER OF STUDENTS IN THE AREA IN ADDITION THE STUDY'S DATABASE HAS SOME NOTABLE OMISSIONS THAT MAY HAVE SKEWED THE RESULTS DOWNTOWN NEW ORLEANS FOR EXAMPLE ISN'T INCLUDED BECAUSE IT DOESN'T MEET MR GARREAU'S REQUIREMENT OF HAVING AT LEAST FIVE MILLION SQUARE FEET OF OFFICE SPACE BUT MR GARREAU WHO COINED THE TERM EDGE CITY SAYS THE TEXAS CULTURE WHERE BEER AND FOOTBALL ARE KING AND THE WEATHER AND FOOD ARE HOT IS THE BEST EXPLANATION FOR THE PROLIFERATION OF WATERING HOLES HERE IN TEXAS BEER IS MUCH MORE THE UNIVERSAL SOLVENT SAYS MR GARREAU TEXAS HAS A LONG TRADITION OF ICE HOUSES PLACES WHERE YOU GO AND SIP A BEER IN THE AFTERNOON BECAUSE IT'S THE ONLY THING YOU HAVE THE ENERGY TO DO ELSEWHERE IN MR GARREAU'S STUDY TEXANS ARE NOTABLE FOR MORE THAN JUST BOOZING IT UP THE STUDY FOUND FOR INSTANCE THAT DOWNTOWN AUSTIN RANKED FOURTH AMONG DOWNTOWNS HAVING THE SHORTEST COMMUTES 49 OF THE WORKERS TRAVEL LESS THAN 15 MINUTES TO WORK WHILE DOWNTOWN SAN ANTONIO HAD THE FIFTH LONGEST COMMUTE 42 OF THE WORKERS TRAVEL 90 MINUTES OR MORE 9404270105 940427 MARKETING & MEDIA ADVERTISING KOREY KAY IS RELYING ON RADIO TO PLUG COMEDY CABLE CHANNEL BY KEVIN GOLDMAN KOREY KAY & PARTNERS THIS WEEK BEGINS ITS FIRST ADVERTISING CAMPAIGN FOR THE COMEDY CENTRAL CABLE TELEVISION CHANNEL WITHOUT A SINGLE TV COMMERCIAL NO JOKE COMEDY CENTRAL THE THREEYEAROLD ALLYUCKS CHANNEL JOINTLY OWNED BY TIME WARNER INC AND VIACOM INC IS ESCHEWING TELEVISION IN FAVOR OF RADIO THE UNUSUAL STRATEGY ISN'T AS GOOFY AS IT APPEARS AFTER ALL THE NETWORK'S AD BUDGET OF LESS THAN 5 MILLION CAN BE STRETCHED TO SATURATE RADIO STATIONS THAT REACH COMEDY CENTRAL'S TARGET AUDIENCE OF 25 TO 40 YEAROLDS ADVERTISERS BELIEVE THE AUDIENCE ISN'T THAT MATURE AND IS PERHAPS COLLEGEAGE OR YOUNGER THE GOAL OF THE CAMPAIGN IS TO GET PEOPLE WHO AREN'T AWARE OF THE CHANNEL SAYS ARTHUR BELL COMEDY CENTRAL'S SENIOR VICE PRESIDENT OF MARKETING WE WANT TO REACH THE AUDIENCE WHOSE THIRST FOR COMEDY ISN'T QUENCHED BY SITUATION COMEDIES ON THE NETWORKS COMEDY CENTRAL HAS 31 MILLION SUBSCRIBERS A HEALTHY INCREASE FROM THE 12 MILLION SUBSCRIBERS WHEN IT FIRST PREMIERED ON APRIL FOOL'S DAY IN 1991 STILL COMEDY CENTRAL IS TRYING TO SHED ITS IMAGE OF BEING THE CHANNEL THAT ONLY RERUNS OLD SATURDAY NIGHT LIVE EPISODES IT HOPES ITS ZANY NEW RADIO SPOTS HIGHLIGHTING SUCH ORIGINAL SHOWS AS MYSTERY SCIENCE THEATER 3000 WILL MAKE CONSUMERS THINK OF IT AS THE PLACE TO WATCH WACKY AND UNPREDICTABLE PROGRAMS IT'S A RIFLE SHOT AT A CLEARLY YOUNG CONSTITUENCY SAYS JEROME DOMINUS A SENIOR VICE PRESIDENT AT WPP GROUP'S J WALTER THOMPSON THEY DO A REASONABLE JOB AT WHAT THEY SET OUT TO ACHIEVE THEY HAVE A LEGITIMATE REASON TO EXIST AND IT'S AS LEGITIMATE AS ANYTHING ELSE IN CABLE A LUKEWARM ENDORSEMENT TO SAY THE LEAST PERHAPS THAT'S ONE REASON COMEDY CENTRAL IS TAKING TO THE AIRWAVES AND ADVERTISING ON SYNDICATED SHOWS HOSTED BY HOWARD STERN AND DON IMUS OF IMUS IN THE MORNING TO MAINTAIN ITS SELFDESCRIBED HIP IMAGE COMEDY CENTRAL WON'T BUY TIME ON LARRY KING'S AFTERNOON TALK SHOW OR ANY STATION THAT PROGRAMS ROCK AND ROLL OLDIES INITIALLY THE SPOTS WILL BE HEARD IN 16 CITIES INCLUDING NEW YORK CHICAGO BOSTON LOS ANGELES AND SEATTLE THE THREE RADIO SPOTS WERE HEAVILY TESTED AMONG COMEDY CENTRAL AUDIENCES IN PHILADELPHIA DENVER AND SAN FRANCISCO ONE OBSTACLE RESEARCH SHOWED THE AUDIENCE IS HIGHLY SKEPTICAL OF ADVERTISING IN GENERAL SO THE COMMERCIALS HAD TO BE ENTERTAINING WHAT DOES COMEDY CENTRAL THINK IS FUNNY SUICIDE ONE RADIO SPOT HAS A TAPE RECORDING OF A SOOTHING CHEERFUL WOMAN ANSWERING A PHONE HI YOU'VE REACHED THE SUICIDE CRISIS HOTLINE IF YOU HAVE A TOUCHTONE PHONE YOU CAN ACCESS OUR AUTOMATEDCOUNSELING SYSTEM PRESS ONE IF YOU'RE OUT ON A LEDGE PRESS TWO IF YOU'VE GOT A DRYCLEANING BAG ON YOUR HEAD PRESS THREE FOR DOUBLE SUICIDES AND MAKE SURE YOUR PARTNER IS READY ON AN EXTENSION THE WOMAN THEN SUGGESTS IF THE DISTRESSED INDIVIDUAL CANNOT WAIT HE OR SHE SHOULD TUNE INTO COMEDY CENTRAL WHILE SUICIDE IS NEVER THE ANSWER TO YOUR PROBLEMS SOME ORIGINAL COMEDY MAY BE THE CAMPAIGN'S TAGLINE WHAT THE HELL IS GOING ON HERE MIGHT SOME INDIVIDUALS THINK THIS COMMERCIAL IS A TAD INSENSITIVE IF NOT TOTALLY OFFENSIVE THE COMEDY IN THE COMMERCIAL ISN'T ABOUT SUICIDE MR BELL SAYS IT'S ABOUT BEING PLACED ON HOLD AND NOT GETTING TO SPEAK TO A HUMAN BEING IT'S SOMETHING WE ALL EXPERIENCE ANOTHER COMMERCIAL WITH BLACK HUMOR THAT DIDN'T TEST WELL WAS GIVEN THE HOOK THE SPOT WAS A SATIRE ON THE EMERGENCY BROADCASTING SYSTEM ANNOUNCEMENTS THAT BEGIN THIS IS ONLY A TEST THE IDEA IS WHILE YOU'RE PREPARING FOR NUCLEAR WAR WATCH RERUNS OF SATURDAY NIGHT LIVE' SAYS MR BELL BUT EXECUTIVES AT KOREY KAY IN NEW YORK CONCEDED THAT ALTHOUGH COMEDY IS SUBJECTIVE PERHAPS THERE IS NOTHING FUNNY ABOUT THE POSSIBILITY OF NUCLEAR DEVASTATION COMEDY CENTRAL PLANS TO ADVERTISE ON TELEVISION EVENTUALLY INCLUDING VIACOM'S MTV AND VH1 NETWORKS BUT FOR NOW ALLEN KAY CHAIRMAN OF KOREY KAY SAYS RADIO IS FINE IT'S JUST TELEVISION WITHOUT PICTURES COMEDY WAS BORN ON RADIO NOW IT'S TIME TO GIVE SOMETHING BACK INTERPUBLIC INTERPUBLIC GROUP OF COS REPORTED A FIRSTQUARTER LOSS OF 88 MILLION DUE TO AN ACCOUNTING CHANGE PROFIT BEFORE THE CHANGE WAS 129 MILLION UP 18 FROM 111 MILLION A YEAR EARLIER REVENUE WAS 421 MILLION UP 8 FROM 3898 MILLION A YEAR EARLIER WHO'S NEWS ARTHUR TAUDER WAS NAMED EXECUTIVE VICE PRESIDENT AT INTERPUBLIC GROUP'S MCCANNERICKSON MR TAUDER 54 YEARS OLD WAS PREVIOUSLY A SENIOR VICE PRESIDENT OVERSEEING PLANNING AND BUSINESS DEVELOPMENT 9404270104 940427 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BANCO O'HIGGINS A PROPOSED OFFERING OF 45 MILLION AMERICAN DEPOSITARY SHARES REPRESENTING 27 MILLION COMMON SHARES VIA MORGAN STANLEY & CO AND CS FIRST BOSTON CORP GEOWORKS A PROPOSED INITIAL OFFERING OF 25 MILLION COMMON SHARES VIA HAMBRECHT & QUIST INC AND PAINEWEBBER INC JC PENNEY CO A SHELF OFFERING OF UP TO 15 BILLION OF DEBT SECURITIES AND WARRANTS TO PURCHASE DEBT SECURITIES SECURITY CAPITAL INDUSTRIAL TRUST A RIGHTS OFFERING OF 2665027 BENEFICIAL INTEREST SHARES TO SHAREHOLDERS TO BE DISTRIBUTED AS A DIVIDEND AT NO COST ON MAY 30 OR WHEN THE REGISTRATION TAKES EFFECT TENNECO INC A 35 OFFERING OF ITS CASE FARM AND CONSTRUCTION EQUIPMENT DIVISION THROUGH AN INITIAL OFFERING VIA CS FIRST BOSTON AND LAZARD FRERES & CO 9404270103 940427 ENTERTAINMENT PC GAMES COULD CAPTURE SEGA NINTENDO CUSTOMERS BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL WITH THEIR CACHET AMONG KIDS AND THEIR ARRAY OF FAMOUS VIDEO GAMES SEGA ENTERPRISES LTD AND NINTENDO CO SEE BIG ROLES FOR THEMSELVES IN THE INTERACTIVE ENTERTAINMENT SYSTEMS OF THE FUTURE BUT THE FOLKS WHO MADE SONIC THE HEDGEHOG AND THE SUPER MARIO BROTHERS FAMOUS AREN'T DAZZLING CONSUMERS RIGHT NOW SOME ANALYSTS SAY SALES OF GAMES PLAYERS ARE FALLING WHILE THE GROWTH OF GAMES CARTRIDGES IS SLOWING SEGA AND OTHERS WRITE THE TREND OFF AS PART OF A NATURAL CYCLE A DIP AS CONSUMERS AWAIT THE NEXT GENERATION OF GAMES MACHINES BUT ANALYSTS NOTE THAT SALES OF GAMES FOR PERSONAL COMPUTERS ARE BOOMING AND THAT IF PC GAMES CONTINUE TO CATCH ON MANY KIDS MAY NEVER AGAIN COVET A SYSTEM THAT JUST PLAYS GAMES THE TREND TOWARD PC GAMES IS GETTING A BOOST FROM CDROM DISK TECHNOLOGY WHICH HAS MORE VIVID GRAPHICS THOUGH IT STILL TAKES LONGER TO RESPOND TO COMMANDS IN ADDITION CDROM PLAYERS ARE BECOMING STANDARD EQUIPMENT ON MANY HIGHEND HOME COMPUTERS MANY OF THE NEW COMPUTER OFFERINGS ARE ALSO EDUTAINMENT GAMES SUCH AS WHERE IN THE WORLD IS CARMEN SANDIEGO THAT DOVETAIL WITH SOME PARENTS' PREFERENCE FOR SOFTWARE THAT TEACHES WHILE CHILDREN PLAY PARENTS ARE MOVING AWAY FROM THE PURELY ENTERTAINMENT ASPECTS OF VIDEOGAMES SYSTEMS TOWARD THE MULTIPURPOSE HOME COMPUTER AS A PURCHASE THEY CAN JUSTIFY SAYS TED LANNAN PRESIDENT OF FAIRFIELD RESEARCH INC A MARKETRESEARCH COMPANY IN LINCOLN NEB AND AL TOBIA AN ANALYST FOR WERTHEIM SCHRODER NOTES THAT WHILE PARENTS OFTEN LIMIT THEIR CHILDREN'S USE OF TRADITIONAL VIDEO GAMES MUCH AS SOME LIMIT TELEVISION VIEWING A KID CAN PLAY ON THE COMPUTER ALL NIGHT AND PARENTS DON'T MIND SALES OF PERSONALCOMPUTER GAMES ARE STILL SMALL COMPARED WITH SALES OF CARTRIDGES FOR GAMESPLAYING MACHINES RUSSELL SIPE PUBLISHER OF COMPUTER GAMING WORLD MAGAZINE ESTIMATES THAT PC GAMES PULLED IN 1 BILLION IN 1993 UP 33 FROM 750 MILLION IN 1992 MR SIPE RECKONS VIDEOGAME CARTRIDGES GREW 20 TO ABOUT 6 BILLION FROM 5 BILLION NONETHELESS SEVERAL ANALYSTS FORECAST A DROP IN SALES OF THE MAINSTAY 16BIT SYSTEMS OF SEGA AND NINTENDO THIS YEAR SEGA SAYS IT STILL EXPECTS GROWTH BUT AT A SLOWER RATE THAN LAST YEAR NINTENDO ALSO SEES MODEST GROWTH IN ITS FISCAL YEAR ENDING MARCH 31 1995 WERTHEIM SCHRODER AN INVESTMENT FIRM EXPECTS SALES OF ONLY SIX TO SEVEN MILLION UNITS THIS YEAR DOWN FROM NINE MILLION LAST YEAR IT PROJECTS ONLY THREE MILLION 16BIT SYSTEM SALES IN 1995 WHEN MORE POWERFUL NINTENDO AND SEGA PLAYERS ARE LIKELY TO BE AVAILABLE SEGA AND NINTENDO ACKNOWLEDGE THAT SALES OF SOFTWARE FOR THEIR MACHINES HAVE BEEN LACKLUSTER THIS YEAR TO SOME DEGREE THE SOFTENING REFLECTS A FAILURE OF BOTH COMPANIES TO COME UP WITH INTERESTING GAMES SAYS PETER MAIN MARKETING VICE PRESIDENT FOR THE US DIVISION OF NINTENDO HE ADDS THAT THERE ARE A FEW GOOD DOUBLEA GAMES BUT CONSPICUOUS IN THEIR ABSENCE ARE THE HOTSELLING TRIPLEA GAMES THAT USUALLY DRIVE THE MARKET CURRENT HITS INCLUDING MORTAL KOMBAT AND NBA JAM STILL COMMAND PREMIUM PRICES OF UP TO 79 APIECE BUT WITH DISCOUNTS THE MAJORITY OF VIDEO GAMES ARE SELLING FOR AS LITTLE AS 20 MEANWHILE NEW CDROM GAME OFFERINGS ARE POSTING RECORD UNIT SALES FOR THEIR CATEGORY REBEL ASSAULT RELEASED LAST NOVEMBER BY LUCASARTS ENTERTAINMENT HAS SOLD MORE THAN 400000 UNITS ACTIVISION INC'S RETURN TO ZORK HAS SOLD MORE THAN 500000 COPIES THOUGH ABOUT HALF WENT TO CDROM PLAYER MAKERS WHICH INCLUDE A COPY WITH THEIR HARDWARE A SURVEY BY FAIRFIELD RESEARCH COMPLETED LAST WEEK ESTIMATED THAT 47 MILLION HOUSEHOLDS OWN A CDROM SYSTEM UP FROM TWO MILLION A YEAR AGO THE SURVEY ALSO FOUND THAT FEWER HOUSEHOLDS WITH TEENAGERS HAD VIDEO GAMES THAN A YEAR AGO THE CORE OF VIDEOGAME SALES IS TEENAGERS AND PRETEEN MALES ELECTRONIC ARTS WHICH WRITES GAMES FOR BOTH CDROM AND TRADITIONAL VIDEOGAME PLAYERS EXPECTS THE VOLUME OF ITS PCBASED CDROM GAME BUSINESS TO INCREASE FOUR TO FIVE TIMES THIS FISCAL YEAR FROM THE PREVIOUS PERIOD VIDEOGAME MAKERS AREN'T TAKING ANY CHANCES MANY ARE CUTTING PRICES THROWING IN FREE GAME CARTRIDGES WITH PURCHASES OF THEIR SYSTEMS AND PROMISING NEW AND IMPROVED MACHINES THEY ARE ALSO BASING THEIR BIG HOPES FOR THE FUTURE ON MUCH MORE POWERFUL SYSTEMS NINTENDO'S PROJECT REALITY AND SEGA'S SATURN BUT THESE PLAYERS ARE 18 TO 24 MONTHS AWAY FROM THE MARKET AND ARE LIKELY TO COST CONSUMERS HUNDREDS OF DOLLARS APIECE IN THE MEANTIME SEGA PLANS TO ROLL OUT AN ADDON WHICH WHEN ATTACHED TO THE 16BIT GENESIS SYSTEM ESSENTIALLY DOUBLES ITS POWER THE ADDON WILL RETAIL FOR 149 NEARLY TWICE THE PRICE OF THE BASIC GENESIS SYSTEM SEGA OFFICIALS SAY THE ADDON THE SUPER32X PROVIDES A HEIGHTENED SENSE OF PERSPECTIVE THEY ALSO SAY THE SYSTEM EXPANDS THE SCREEN'S COLOR PALATE TO 6400 HUES FROM 64 9404270102 940427 WHO'S NEWS BF GOODRICH CO BF GOODRICH CO AKRON OHIO FIVE MEN WERE NAMED VICE PRESIDENTS OF THIS SPECIALTY CHEMICALS AIRCRAFT SYSTEMS COMPONENTS AND SERVICES CONCERN RETAINING THEIR CURRENT POSITIONS THEY ARE STEPHEN R HUGGINS 51YEAROLD GROUP VICE PRESIDENT OF THE SENSORS AND INTEGRATED SYSTEMS GROUP MARSHALL O LARSEN 45 GROUP VICE PRESIDENT OF THE SAFETY SYSTEMS AND MAINTENANCE REPAIR AND OVERHAUL GROUPS OF BFGOODRICH AEROSPACE JEFFREY A SAXON 45 GROUP VICE PRESIDENT SPECIALTY PLASTICS GROUP OF BFGOODRICH SPECIALTY CHEMICALS ERNEST F SCHAUB 50 GROUP VICE PRESIDENT LANDING SYSTEMS GROUP OF BFGOODRICH AEROSPACE AND JOHN A WEAVER 51 GROUP VICE PRESIDENT OF THE SPECIALTY ADDITIVES GROUP OF BFGOODRICH SPECIALTY CHEMICALS 9404270101 940427 LAW LEGAL BEAT ROSE FIRM SUES RESOLUTION TRUST OVER REQUEST FOR LIST OF CLIENTS BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL THE ROSE LAW FIRM SUED THE RESOLUTION TRUST CORP ALLEGING THAT THE AGENCY IS TRYING TO COERCE THE FIRM INTO TURNING OVER A LIST OF CLIENTS GOING BACK NINE YEARS THE LITTLE ROCK ARK LAW FIRM WHERE HILLARY RODHAM CLINTON WAS ONCE A PARTNER FILED ITS LAWSUIT AFTER THE AGENCY ISSUED A SUBPOENA DEMANDING A WIDE ARRAY OF DOCUMENTS RELATING TO THE FIRM'S WORK OVER THE PAST NINE YEARS THE THRIFT AGENCY HAS BEEN LOOKING INTO ALLEGATIONS THAT THE FIRM HAD CONFLICTS OF INTEREST WHEN IT REPRESENTED REGULATORS AFTER THE FAILURE OF MADISON GUARANTY SAVINGS & LOAN IN 1989 THE RTC IS ALSO AUDITING THE FIRM'S LEGAL BILLS THE ROSE FIRM HAS BEEN CAUGHT UP IN THE WHITEWATER AFFAIR IN PART BECAUSE MRS CLINTON AND ANOTHER LAWYER AT THE FIRM REPRESENTED MADISON WHICH WAS OWNED BY ONE OF THE CLINTONS' PARTNERS IN THE WHITEWATER REALESTATE INVESTMENT AFTER MADISON WAS TAKEN OVER BY THRIFT REGULATORS THE FIRM REPRESENTED REGULATORS IN A SUIT AGAINST MADISON'S AUDITORS THE RTC AND THE FEDERAL DEPOSIT INSURANCE CORP HAVE BEEN INVESTIGATING WHETHER ROSE HAD A CONFLICT OF INTEREST IN THAT LITIGATION IN ITS SUBPOENA ISSUED APRIL 18 THE RTC ASKED FOR ANY DOCUMENTS LISTING THE NAMES OF ANY INDIVIDUAL PARTNERSHIP CORPORATION ASSOCIATION OR OTHER PERSON OR ENTITY TO WHOM THE ROSE LAW FIRM PROVIDED LEGAL SERVICES ACCORDING TO THE ROSE COMPLAINT ACCORDING TO ROSE MANAGING PARTNER RONALD CLARK THE SUBPOENA GAVE ROSE THE OPTION OF SUPPLYING THE AGENCY WITH A LIST OF ITS CLIENTS INSTEAD THE EFFECT HE SAID WAS TO COERCE US INTO PREPARING A LIST OF CLIENTS BETWEEN JANUARY 1 1985 AND APRIL 15 THE DEADLINE FOR PRODUCING THE DOCUMENTS IS TODAY AND THE RTC HAD THREATENED TO INITIATE A CIVIL ENFORCEMENT PROCEEDING ACCORDING TO MR CLARK WE FEEL THAT THE REQUIREMENT IS OVERBROAD AND IRRELEVANT GIVEN THE SCOPE OF THE INVESTIGATION THAT WE FEEL IS APPROPRIATE MR CLARK SAID HE SAID THE LIST IS CONFIDENTIAL AND THAT THE FIRM FEELS THE RTC WON'T SAFEGUARD ITS CONFIDENTIALITY THEY WANT TO BE ABLE TO TAKE IT OUTSIDE OUR BUILDING AND WE FEEL THAT'S UNNECESSARY MR CLARK SAID THE FDIC ALSO HAS REQUESTED INFORMATION AIMED AT ROOTING OUT POTENTIAL CONFLICTS AND THAT THE FIRM IS COMFORTABLE WITH THE PROCEDURES IMPLEMENTED BY THE FDIC ALTHOUGH THEY HAVE NOT BEEN FINALIZED PATRICIA BLACK COUNSEL TO THE RTC'S INSPECTOR GENERAL SAID IT IS CLEARLY IN OUR JURISDICTION TO SEEK THE NAMES OF ROSE'S CLIENTS IN ORDER TO KNOW WHETHER THERE ARE CONFLICTS IT'S MANDATORY TO LOOK AT THE CLIENTS I DON'T KNOW HOW ELSE YOU DO THAT MS BLACK SAID THE AGENCY HAD SOUGHT AND RECEIVED LISTS OF CLIENTS FROM OTHER LAW FIRMS SHE SAID THE RTC WOULD ASK THAT THE COURT ORDER THAT THEY RESPOND TO OUR SUBPOENA MS BLACK POINTED OUT THAT PROVIDING A LIST OF CLIENT NAMES DOESN'T VIOLATE THE ATTORNEYCLIENT PRIVILEGE BUT IN ITS LAWSUIT FILED IN FEDERAL DISTRICT COURT IN LITTLE ROCK THE ROSE FIRM SUGGESTS THAT TURNING OVER THE LIST MIGHT ONLY BE THE FIRST STEP TO FERRET OUT ANY POSSIBLE CONFLICTS THE AGENCY WILL NEED TO KNOW WHAT ROSE DID FOR EACH OF THOSE CLIENTS THE ROSE COMPLAINT NOTES AT THE SAME TIME THE RTC ACKNOWLEDGES THE ATTORNEYCLIENT PRIVILEGE PREVENTS ROSE FROM PRODUCING MUCH OF THAT INFORMATION BOTH THE FDIC AND THE RTC PREVIOUSLY HAVE INVESTIGATED WHETHER ROSE HAD CERTAIN CONFLICTS OF INTEREST THE QUESTIONS INVOLVED WHETHER ROSE ADEQUATELY DISCLOSED TO THRIFT REGULATORS THAT IT HAD REPRESENTED MADISON BEFORE THE ARKANSAS SECURITIES DEPARTMENT AND THAT THE FATHERINLAW OF FORMER PARTNER WEBSTER HUBBELL WAS MIRED IN LITIGATION WITH MADISON IN A REPORT ISSUED EARLIER THIS YEAR THE FDIC FOUND NO EVIDENCE OF A CONFLICT AND NO BASIS TO RECOMMEND ANY SANCTIONS AGAINST THE FIRM THE AGENCIES REOPENED THEIR INVESTIGATIONS AT THE REQUEST OF THE SENATE BANKING COMMITTEE ACCORDING TO THE ROSE FIRM'S COMPLAINT THE FIRM HAS TURNED OVER MORE THAN 60000 PAGES OF DOCUMENTS TO THE RTC AND AN EQUAL NUMBER TO THE FDIC IN ADDITION THE FIRM HAS PROVIDED 62000 PAGES OF DOCUMENTS TO WHITEWATER SPECIAL COUNSEL ROBERT FISKE THE ROSE FIRM IS ALSO COOPERATING WITH A SEPARATE RTC INVESTIGATION CONDUCTED BY A SAN FRANCISCO LAW FIRM OF POTENTIAL LIABILITY BY MADISON OFFICERS AND PROFESSIONALS SOME ROSE PARTNERS HAVE BRISTLED AT SOME OF THE REQUESTS FOR DOCUMENTS THEY'RE ASKING FOR THINGS THAT ARE TOTALLY IRRELEVANT PRIVILEGED INFORMATION THAT IN OUR OPINION HAS NOTHING TO DO WITH WHITEWATER OR MADISON ONE LAWYER SAID SOME LAWYERS AT ROSE ALSO SAID THAT THE REQUESTS ESPECIALLY THOSE OF THE RTC AND FDIC ARE DUPLICATIVE WE'VE ASKED THAT THEY COORDINATE THEIR INVESTIGATIONS BUT THAT HAS NOT BEEN POSSIBLE SO FAR MR CLARK SAID MS BLACK SAID THE AGENCIES ARE COORDINATING THEIR EFFORTS BUT ADDED WE ALL HAVE TO MEET OUR OWN AUDIT STANDARDS WE ALL HAVE TO DO OUR OWN WORK LOS ANGELES LAWYER MARSHALL GROSSMAN SAID AN ARBITRATION PANEL AWARDED HIM 232 MILLION IN LEGAL FEES AND INTEREST AFTER A DISPUTE WITH HIS FORMER CLIENTS OWNERS OF THE GUESS INC JEANS COMPANY THE AWARD ROUGHLY TWOTHIRDS OF WHAT MR GROSSMAN HAD SOUGHT WINDS UP AN UNUSUALLY CONTENTIOUS AND PROTRACTED BATTLE OVER ATTORNEY'S FEES UNDER CALIFORNIA LAW AS IN MANY STATES LAWYERS WHOSE BILLS ARE CHALLENGED MUST OFFER THEIR CLIENTS AN OPPORTUNITY TO ARBITRATE THE MATTER BEFORE PROCEEDING TO A COURTROOM IF CLIENTS CHOOSE BINDING ARBITRATION AS THEY DID HERE THE AWARD CAN'T BE OVERTURNED EXCEPT IN RARE INSTANCES ARBITRATION USUALLY CONDUCTED BY A PANEL OF PRIVATE JUDGES PAID BY THE PARTIES IS GENERALLY QUICKER AND CHEAPER THAN THE STATE JUDICIAL PROCESS BUT THE GUESS MATTER MATCHED THE MESSIEST OF PUBLIC LAWSUITS A SERIES OF WITNESSES TESTIFIED IN AN OFFICE SPACE ARRANGED TO RESEMBLE A COURTROOM AND NEARLY 13000 PAGES OF DOCUMENTS WERE PRODUCED OVER THE COURSE OF THE FOURYEAR CASE MR GROSSMAN OF ALSCHULER GROSSMAN & PINES SAID HE DOESN'T KNOW OF ANY OTHER ATTORNEYFEE AWARD IN PRIVATEPARTY LITIGATION THAT'S LARGER THAN THIS ONE THE AWARD FIRST REPORTED BY THE LOS ANGELES TIMES INCLUDED 17 MILLION IN UNPAID HOURLY LEGAL FEES AND A BONUS PLUS INTEREST THE ARBITRATORS' 100PAGE OPINION IS CONFIDENTIAL THE FEE DISAGREEMENT CENTERED ON ONE PIECE OF THE PATCHWORK LEGAL PAST OF LOS ANGELESBASED GUESS AND THE MARCIANO FAMILY WHO HAD ENGAGED IN A SIXYEAR BATTLE FOR CONTROL OF THE COMPANY WITH THE RIVAL NAKASH FAMILY OWNERS OF NEW YORK'S JORDACHE ENTERPRISES INC A JURY GAVE THE MARCIANOS A MAJOR VICTORY IN 1989 AGREEING WITH MR GROSSMAN THAT THE NAKASHES HAD FRAUDULENTLY INDUCED THE MARCIANOS TO SELL THEM A HALF OWNERSHIP IN GUESS SIX YEARS EARLIER IN 1990 AS A SEPARATE JURY WAS DELIBERATING ABOUT THE AMOUNT OF DAMAGES OWED THE MARCIANOS THE FAMILIES SETTLED FOR AN UNDISCLOSED SUM MR GROSSMAN IMMEDIATELY FILED A LIEN AGAINST THE MARCIANOS' SETTLEMENT PROCEEDS CONTENDING THEY OWED HIM ADDITIONAL MONEY UNDER A WRITTEN BONUS AGREEMENT THE MARCIANOS DECLINED CLAIMING THAT THE CIRCUMSTANCES SURROUNDING THE ENTRY INTO THE BONUS AGREEMENT WERE COERCIVE SAID THEIR LOS ANGELES LAWYER DALE KINSELLA HE DECLINED TO ELABORATE THE ARBITRATORS DECIDED TO ENFORCE THE WRITTEN BONUS AGREEMENT WHICH CALLED FOR A 10 MILLION LUMP SUM PLUS 20 OF THE DAMAGES BUT DECLINED TO AWARD MR GROSSMAN ADDITIONAL PREMIUMS HE REQUESTED AMY STEVENS CONTRIBUTED TO THIS ARTICLE 9404270100 940427 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN HIGH STAKES THE TREASURY SAYS 7 BILLION MAY RIDE ON ONE BIG COURT CASE FEW TAX CASES ARE DRAWING AS MUCH ATTENTION AS THE IRS'S FIGHT WITH ALBERTSON'S INC A BOISE IDAHO FOOD AND DRUGSTORE CHAIN THE TREASURY ESTIMATES THAT A RECENT APPEALS COURT RULING IN FAVOR OF ALBERTSON'S IF APPLIED NATIONWIDE COULD MEAN A LOSS OF TAX RECEIPTS OF 7 BILLION OVER FIVE YEARS SMALL WONDER THE JUSTICE DEPARTMENT CALLS THE CASE ONE OF EXCEPTIONAL IMPORTANCE ALBERTSON'S GAVE DEFERRED PAY PLUS WHAT IT CALLED INTEREST TO SOME EXECUTIVES AND A DIRECTOR IT DEDUCTED THE INTEREST CURRENTLY EVEN THOUGH IT WON'T ACTUALLY PAY FOR YEARS THE IRS REJECTED THOSE DEDUCTIONS BUT THE NINTH CIRCUIT COURT OF APPEALS IN SAN FRANCISCO SIDED WITH ALBERTSON'S RECENTLY THOUGH THE THREE JUDGES ON THE PANEL AGREED TO REHEAR THE CASE JUNE 29 IN PASADENA IT IS RARE FOR A PANEL TO AGREE TO REVIEW ITS OWN DECISION SAYS ANDRE FOGARASI OF ARTHUR ANDERSEN IN WASHINGTON IN VIEW OF THE HUGE FINANCIAL IMPACT OF THE CASE HE SAYS MAYBE THE PANEL IS THINKING ABOUT REVERSING ITSELF BUSY SIGNALS MORE PEOPLE HAD TROUBLE REACHING THE IRS FOR HELP THIS YEAR IF YOU COULDN'T GET THROUGH TO THE IRS ON ITS TOLLFREE TELEPHONE ASSISTANCE LINE YOU HAD PLENTY OF COMPANY ACCESSIBILITY TO THE IRS'S PHONE HELPERS CONTINUES TO DECLINE SAYS A REPORT BY THE GENERAL ACCOUNTING OFFICE A CONGRESSIONAL WATCHDOG AGENCY MANY PEOPLE RECEIVE BUSY SIGNALS OR ARE PUT ON HOLD AND HANG UP BEFORE IRS EMPLOYEES PICK UP ONLY 21 OF THE CALLS TO THE IRS AS OF MARCH 19 GOT THROUGH DOWN FROM 24 IN 1993 AND 58 IN 1989 THE GAO SAYS THE IRS SAYS THE GAO ANALYSIS OVERSTATES THE PROBLEM BECAUSE IT DOESN'T TAKE INTO ACCOUNT THE GROWING USE OF AUTOREDIAL FEATURES ON MANY PHONES THE GAO IS COUNTING CALLS NOT CALLERS THE IRS SAYS ADDING THAT IT IS TRYING TO DEVISE A NEW WAY TO MEASURE SERVICE BUT ROBERT TOBIAS PRESIDENT OF THE NATIONAL TREASURY EMPLOYEES UNION PREDICTS AN EVEN BIGGER PROBLEM NEXT YEAR BECAUSE NOT ENOUGH PEOPLE ARE BEING ALLOCATED TO ANSWER CALLS ON SECOND THOUGHT NEW IRS EDICTS PROMPT FIRMS TO RECONSIDER PLANS STARTLED BY A RECENT BARRAGE OF IRS ANNOUNCEMENTS SOME COMPANIES MAY ABANDON AGGRESSIVE CORPORATEFINANCE AND RESTRUCTURING IDEAS THEY HAVE BEEN STUDYING TAX EXPERTS SAY FOR EXAMPLE SOME US COMPANIES WERE THINKING ABOUT REORGANIZING ABROAD BUT THE IRS CITING CERTAIN TAXMOTIVATED RESTRUCTURINGS BY US COMPANIES WITH FOREIGN UNITS HAS SLAMMED THE DOOR SHUT ON THIS APPROACH FOR MOST COMPANIES EFFECTIVE APRIL 18 THE IRS NOTICE KILLED SOME TRANSACTIONS SAYS BARRY ISAACS OF DELOITTE & TOUCHE IN WASHINGTON A SEPARATE IRS MOVE MAY SLOW THE GROWTH OF SOME FORMS OF FINANCING TECHNIQUES THAT BLEND ELEMENTS OF DEBT AND EQUITY THE IRS WILL SCRUTINIZE DEDUCTIONS FOR INTEREST PAYMENTS IN CASES THAT LOOK MORE LIKE NONDEDUCTIBLE STOCK DIVIDENDS THUS LAWYERS SAY SOME FIRMS MAY HAVE TO REVISE ASPECTS OF PLANNED OFFERINGS OF MONTHLY INCOME PREFERRED SHARES OR MIPS OR EXCHANGEABLE PREFERRED INCOME CUMULATIVE SHARES OR EPICS BUT INVESTMENT BANKERS SAY THE BASIC CONCEPT STILL IS VERY MUCH ALIVE SAMUEL SESSIONS TREASURY DEPUTY ASSISTANT SECRETARY FOR TAX POLICY WILL LEAVE HIS JOB SOON MR SESSIONS 39 WILL TAKE PREMED COURSES IN A SPECIAL PROGRAM AT GOUCHER COLLEGE IN BALTIMORE TO PREPARE FOR A NEW CAREER AS A DOCTOR I'M VERY EXCITED ABOUT IT HE SAYS FRAUDBUSTERS THE TREASURY UNDER PRESSURE FROM LAWMAKERS PLANS A SPECIAL TASK FORCE TO COMBAT TAXREFUND FRAUD TREASURY ASSISTANT SECRETARY RON NOBLE WILL HEAD THE GROUP CLINTONITES TRY HARDER TO PROMOTE A TAX BREAK FOR LOWINCOME WORKERS TREASURY OFFICIALS ARE TRYING FRESH APPROACHES TO AN OLD PROBLEM HOW TO ENCOURAGE MORE LOWINCOME WORKERS TO TAKE ADVANTAGE OF THE EARNEDINCOME TAX CREDIT AND A PROVISION ALLOWING MANY WORKERS TO GET PART OF THE CREDIT UP FRONT IN THEIR PAYCHECKS THE TREASURY SAYS FEWER THAN 1 OF WORKERS CLAIMING THE CREDIT TAKE ADVANTAGE OF THE ADVANCEPAYMENT PROVISION TO PUBLICIZE THE ADVANCEPAYMENT FEATURE THE IRS RECENTLY BEGAN SENDING LETTERS TO 10 MILLION PEOPLE WHO MAY BE ELIGIBLE ENCLOSED IS FORM W5 WHICH WORKERS MUST GIVE THEIR BOSSES TO GET THE ADVANCE PAY ALSO THE TREASURY FORMS A PANEL OF CORPORATE EXECUTIVES TO PROMOTE THE CREDIT DEPUTY SECRETARY ROGER ALTMAN AND JOSH WESTON CHAIRMAN OF AUTOMATED DATA PROCESSING INC IN ROSELAND NJ HEAD THE GROUP TO QUALIFY FOR THE CREDIT IN 1994 A TAXPAYER'S INCOME MUST BE UNDER 23755 WORKERS WHO EXPECT TO QUALIFY THIS YEAR AND WHO HAVE A CHILD LIVING WITH THEM MAY ALSO BE ELIGIBLE FOR THE ADVANCE PAY SEE IRS PUBLICATIONS 553 AND 596 FOR DETAILS BRIEFS TAX HUMOR A REALESTATE TAX PUBLICATION CARRIES AN ARTICLE TITLED THE NAKED TRUTH ABOUT LUST' REIMBURSEMENTS IT TELLS ALL ABOUT LEAKING UNDERGROUNDSTORAGE TANKS ABOUT HALF OF ALL INDIVIDUAL RETURNS AND ABOUT TWOTHIRDS OF THE FORM 1040S RECEIVED BY THE IRS AS OF APRIL 15 WERE DONE BY PAID PREPARERS 9404270099 940427 HOMESTAKE CYPRUS SAW PROFIT SURGE IN FIRST QUARTER BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL TWO LARGE MINING COMPANIES REPORTED SIGNIFICANTLY IMPROVED EARNINGS FOR THE FIRST QUARTER WHILE TWO SMALLER COMPANIES SHOWED FLAT AND LOWER RESULTS IN SPITE OF HIGHER GOLD PRICES HOMESTAKE MINING CO SAN FRANCISCO REPORTED A MORE THAN FOURFOLD INCREASE IN NET INCOME TO 242 MILLION OR 18 CENTS A SHARE FROM 56 MILLION OR FOUR CENTS A SHARE IN THE YEAREARLIER PERIOD THE COMPANY SAID IT CUT PRODUCTION COSTS BY 11 OR BY 132 MILLION INCLUDING 7 MILLION FROM THE SALE OF TWO HIGHCOST MINES THE COMPANY SOLD ABOUT 15 LESS GOLD DUE TO LOWER ORE GRADES AT A NUMBER OF MINES BUT HIGHER GOLD PRICES OFFSET THE REDUCTION REVENUE TOTALED 161 MILLION UNCHANGED FROM THE YEAR BEFORE CYPRUS AMAX MINERALS CO DENVER REPORTED THAT FIRSTQUARTER NET INCOME MORE THAN DOUBLED TO 28 MILLION OR 25 CENTS A SHARE FROM 12 MILLION OR 24 CENTS A SHARE AVERAGE SHARES OUTSTANDING ROSE TO 102077000 FROM 47879000 DUE TO THE ACQUISITION BY CYPRUS MINERALS CO OF AMAX INC FOR STOCK LAST NOVEMBER REVENUE JUMPED 57 TO 588 MILLION FROM 375 MILLION THE EARNINGS INCLUDED 88 MILLION IN NET INCOME FROM AMAX'S OIL AND GAS BUSINESS WHICH CYPRUS SOLD AT THE END OF MARCH AND 6 MILLION IN ONETIME CHARGES FOR CLOSING A MOLYBDENUM MINE AND RELOCATING THE COMPANY'S LITHIUM HEADQUARTERS YEAREARLIER EARNINGS INCLUDED AN AFTERTAX GAIN OF 16 MILLION FROM THE SALE OF A BANKRUPTCY CLAIM THE COMPANY REPORTED COPPER OPERATING EARNINGS OF 36 MILLION REVERSING A LOSS OF 6 MILLION THE YEAR EARLIER COAL EARNINGS ROSE TO 25 MILLION FROM 6 MILLION DUE TO SALES FROM THE ACQUIRED AMAX MINES IN A CONFERENCE CALL WITH ANALYSTS CYPRUS CHAIRMAN MILTON H WARD SAID THE COMPANY WILL HAVE CUT ABOUT 110 MILLION IN ANNUAL CORPORATE EXPENSES BY MIDYEAR DENVERBASED AMAX GOLD INC WHICH IS 40 OWNED BY CYPRUS HAD A LOSS OF 58 MILLION OR SEVEN CENTS A SHARE COMPARED WITH A LOSS OF 212 MILLION OR 27 CENTS A SHARE IN THE YEAR AGO QUARTER THE LOSS INCLUDED 152 MILLION FOR ACCOUNTING CHANGES THE SLIGHT IMPROVEMENT WAS DUE TO HIGHER SALES HIGHER GOLD PRICES AND SLIGHTLY LOWER OPERATING COSTS SALES ROSE 29 TO 238 MILLION FROM 184 MILLION DUE TO HIGHER PRODUCTION PEGASUS GOLD INC REPORTED A WIDER LOSS DUE TO LOWER ORE GRADES AT ITS MINES LOWER PRICES FOR BYPRODUCT METALS AND HIGHER EXPLORATION AND ADMINISTRATIVE EXPENSES CONNECTED WITH INTERNATIONAL EXPLORATION THE SPOKANE WASH COMPANY REPORTED A LOSS OF 17 MILLION OR FIVE CENTS A SHARE COMPARED WITH A LOSS OF 500000 OR ONE CENT A SHARE THE YEAR EARLIER SALES ROSE 30 TO 411 MILLION FROM 317 MILLION 9404270098 940427 CATERPILLAR IS HIT BY ONEDAY WALKOUT AT TWO PRODUCTION FACILITIES IN ILLINOIS BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL ABOUT 2800 PRODUCTION WORKERS WALKED OFF THEIR JOBS FOR A DAY AT TWO CATERPILLAR INC PLANTS IN ILLINOIS LEAVING MANAGEMENT AND OTHER WHITECOLLAR WORKERS TO FILL ORDERS FOR THE COMPANY'S CONSTRUCTION EQUIPMENT THE WALKOUT PROMPTED BY A DISPUTE OVER CATERPILLAR'S TREATMENT OF A UNION STEWARD IN DECATUR DEMONSTRATED THE POTENTIAL DISRUPTIONS THE COMPANY FACES AS IT TRIES TO OPERATE WITHOUT A CONTRACT WITH THE UNITED AUTO WORKERS UNION EVEN WITH SUBSTANTIAL OVERTIME WORK IN RECENT MONTHS THE PEORIA ILL CONSTRUCTIONEQUIPMENT GIANT HAS ABOUT 30 OF ITS 150 EQUIPMENT TYPES ON ALLOCATION TO DEALERS A SPOKESMAN DISPUTED UNION ASSERTIONS THAT PRODUCTION WAS HALTED YESTERDAY AT THE STRUCK PLANTS IN DECATUR AND AURORA BUT HE ACKNOWLEDGED DECREASED PRODUCTION LEVELS WHILE HAILING THE UNION'S DECISION TO RETURN TO WORK CATERPILLAR SAID THE DISRUPTION LOST PERSONAL INCOME AND THE ANXIETY CREATED BY THE WALKOUT SERVED NO PURPOSE WHATSOEVER SINCE RETURNING FROM THEIR FIVEANDAHALFMONTH STRIKE TWO YEARS AGO UAW MEMBERS HAVE STAGED LIMITED WALKOUTS OVER WHAT THEY ALLEGE ARE UNFAIR LABOR PRACTICES BY CATERPILLAR BUT YESTERDAY'S ACTION CAME AS THE COMPANY'S BUSINESS IS MUCH STRONGER THAN IT AND INVESTORS HAD EXPECTED JUST A FEW MONTHS AGO WITH TENSIONS RUNNING HIGH IN THE PLANTS LOCAL UNION OFFICIALS SAY ACTIONS SUCH AS YESTERDAY'S COULD ESCALATE TO A COMPANYWIDE STRIKE CATERPILLAR IS MANAGING BY FEAR AND INTIMIDATION AND THREATS AND THE PEOPLE ARE FED UP WITH IT SAID AL WEYGAND UAW BARGAINING COMMITTEE CHAIRMAN AT THE AURORA PLANT WHEN THEY KICK US WE'RE GOING TO KICK BACK THE WAY WE VIEW IT IS THAT TIME IS NOT ON CATERPILLAR'S SIDE SAID BARRY BANNISTER AN ANALYST AT SG WARBURG & CO IN NEW YORK WITH MARKETSHARE GAINS AND THE LACK OF A BIG INVENTORY CUSHION MR BANNISTER SAID THE REPLACEMENT AND SALARIEDWORKER STRATEGY DOESN'T SEEM PLAUSIBLE AS MARKETS RECOVER THE LATEST DISPUTE STARTED AFTER THE COMPANY REVOKED THE PRIVILEGES OF A UNION STEWARD AT THE DECATUR PLANT CATERPILLAR SAID THE STEWARD HAS SPENT VIRTUALLY EIGHT HOURS A SHIFT FILING GRIEVANCES MANY OF THEM OVER FRIVOLOUS MATTERS EARLIER THIS WEEK A FEDERAL JUDGE IN PEORIA DENIED A MOTION BY THE COMPANY TO DISMISS A SUIT IN WHICH THE NATIONAL LABOR RELATIONS BOARD IS SEEKING THE REINSTATEMENT OF GEORGE BOZE A UNION OFFICIAL IN THE PEORIA AREA WHOSE OUSTER LED TO A THREEDAY STRIKE LAST NOVEMBER 9404270097 940427 YIELDS ON CDS ROSE IN THE LATEST WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS GENERALLY ROSE IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS ROSE TO 321 FROM 316 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS INCREASED TO 502 FROM 494 SOME YIELDS ARE MUCH HIGHER THAN THE AVERAGE FOR EXAMPLE INVESTORS COULD HAVE RECEIVED A 645 YIELD ON A FIVEYEAR SAVINGS CD FROM SAFRA NATIONAL BANK IN NEW YORK THIS WAS THE NATIONAL HIGH FOR THESE CERTIFICATES ACCORDING TO THE WILMINGTON DEL INFORMATION SERVICE THE AVERAGE YIELD ROSE TO 377 FROM 368 ON SIXMONTH BROKERSOLD CDS YIELDS ON FIVEYEAR CDS DECLINED TO 541 FROM 545 BANXQUOTE SAID ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE CLIMBED TO 358 FROM 346 ON FIVEYEAR JUMBOS THE AVERAGE INCREASED TO 547 FROM 545 ACCORDING TO BANXQUOTE 9404270096 940427 INTERNATIONAL SAME GROUP MAY HAVE KIDNAPPED MEXICAN RETAIL EXECUTIVE AND BANKER BY PAUL B CARROLL STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY MEXICAN AUTHORITIES THINK THE GROUP THAT KIDNAPPED A PROMINENT RETAILING EXECUTIVE ON MONDAY MAY BE THE SAME ONE THAT GRABBED A BILLIONAIRE BANKER LAST MONTH ACCORDING TO PEOPLE CLOSE TO THE INVESTIGATION THEY ARE BASING THEIR ASSUMPTION PARTLY ON THE FACT THAT THE MAN SEIZED MONDAY ANGEL LOSADA MORENO IS A DIRECTOR OF GRUPO FINANCIERO BANAMEXACCIVAL SA WHOSE PRESIDENT ALFREDO HARP HELU WAS KIDNAPPED SIX WEEKS AGO THE HARP KIDNAPPERS HAVE BEEN TRYING THROUGH THREATS SENT TO NEWSPAPERS AND THROUGH OTHER MEANS TO WIN A BIGGER RANSOM FROM THE BANK CAPTURING A DIRECTOR WOULD SEND A STRONG SIGNAL THE FEELING THAT THE KIDNAPPINGS ARE LINKED IS ALSO BASED ON THE SUSPICION THAT THE HARP KIDNAPPERS ARE THE SAME ONES WHO SEIZED BUSINESSMAN JOAQUIN VARGAS TWO YEARS AGO THAT GROUP REPORTEDLY SEIZED ANOTHER EXECUTIVE LATER TO INCREASE ITS BARGAINING POWER SO IT WOULD BE LOGICAL TO THINK THE GROUP MIGHT TRY THE SAME TACTIC THIS TIME IF THE HARP AND LOSADA KIDNAPPERS ARE IN FACT THE SAME IT WOULD COMPLICATE THE NEGOTIATIONS FOR THEIR SAFE RETURNS SOURCES CLOSE TO THE INVESTIGATION HAVE SAID THAT THE HARP GROUP IS ASKING FOR NEARLY 100 MILLION IN RANSOM BUT THEY ASSUMED THAT AUTHORITIES WOULD BE ABLE TO TALK THE KIDNAPPERS DOWN TO ABOUT 10 MILLION TO 15 MILLION WHILE THE KIDNAPPERS HAVE THREATENED TO KILL MR HARP THROUGH LETTERS TO NEWSPAPERS PUBLISHED AS RECENTLY AS YESTERDAY MORNING THE ASSUMPTION HAS BEEN THAT THEY WOULDN'T DARE HARM HIM FOR FEAR OF LOSING THEIR MONEY BUT IF THE KIDNAPPERS ARE HOLDING TWO MEN SECURITY EXPERTS FEAR THEY COULD KILL ONE TO UNDERSCORE THE SERIOUSNESS OF THEIR DEMANDS ONE SECURITY EXPERT SAID THE SEIZING OF MR LOSADA UNDERLINES HOW LITTLE ATTENTION IS PAID TO SECURITY IN MEXICO EVEN THOUGH IT HAS BECOME ONE OF THE MOST KIDNAPPRONE NATIONS IN THE WESTERN HEMISPHERE MR LOSADA 39YEAROLD VICE CHAIRMAN OF RETAILER GRUPO GIGANTE SA WASN'T RIDING IN AN ARMORED CAR HE WASN'T TAKING OTHER SECURITY PRECAUTIONS EITHER EVEN THOUGH HIS FATHER THE FOUNDER OF GIGANTE IS A BILLIONAIRE AND EVEN THOUGH THE FAMILY WAS ON A LIST OF POTENTIAL KIDNAP VICTIMS FOUND A YEAR AGO THAT WAS APPARENTLY COMPILED BY THE BASQUE TERRORIST GROUP ETA MR HARP'S NAME WAS ALSO ON THAT LIST TO ADDRESS THE GROWING KIDNAPPING PROBLEM AND OTHER CRIMINAL ACTIVITY IN MEXICO INCLUDING THE ASSASSINATION OF THE RULINGPARTY CANDIDATE A MONTH AGO PRESIDENT CARLOS SALINAS DE GORTARI NAMED A NATIONAL COORDINATOR OF PUBLIC SECURITY MONDAY NIGHT PART OF THE PROBLEM WITH THE INVESTIGATIONS OF THE KIDNAPPINGS THE ASSASSINATION AND OTHER VIOLENCE IS THAT POLICEMEN OR FORMER POLICEMEN ARE SO OFTEN INVOLVED IN CRIMES THAT IT IS HARD TO TRUST THE POLICE FORCES TO SOLVE THEM THE NEW COORDINATOR OF PUBLIC SECURITY ARSENIO FARELL CUBILLAS WILL BE GIVEN BROAD POWERS TO USE ALL PARTS OF THE FEDERAL GOVERNMENT TO ATTACK CRIME 9404270094 940427 TECHNOLOGY TAIWAN FIRM PLANS TO START MARKETING NEW MICROPROCESSOR TAIPEI TAIWAN UNITED MICROELECTRONICS CORP PLANS TO START MARKETING TAIWAN'S FIRST HOMEGROWN MICROPROCESSOR THIS YEAR UMC HAS BEEN DEVELOPING A CHIP SINCE 1991 TO COMPETE WITH INTEL CORP'S 486CLASS OF MICROPROCESSORS BUT THE START OF SALES HAVE BEEN DELAYED SEVERAL TIMES BECAUSE OF TECHNICAL PROBLEMS NOW ACCORDING TO TSAI MINGKAI UMC'S EXECUTIVE VICE PRESIDENT THE FIRST MICROPROCESSORS ARE LIKELY TO REACH THE MARKET BY LATE THIS YEAR MICROPROCESSORS SERVE AS A COMPUTER'S BRAIN IF UMC IS SUCCESSFUL INTEL WILL BE FACING ONE MORE ATTACK IN THE 486 MARKET STILL INTEL HOLDS ABOUT 90 OF THE WORLD MARKET FOR MICROPROCESSORS AND HAS AGGRESSIVELY SUED COMPETITORS THAT HAVE SOUGHT TO CLONE ITS CHIPS INTEL BASED IN SANTA CLARA CALIF HAS SAID IT WANTS TO EXAMINE UMC'S MICROPROCESSORS BEFORE DISCUSSING ANY POSSIBLE LEGAL ACTION MR TSAI SAYS UMC'S DESIGN DOESN'T INFRINGE ON INTEL PATENTS MR TSAI SAID THE UMC MICROPROCESSOR IS ALREADY BEING TESTED BY A SMALL NUMBER OF CUSTOMERS UMC PLANS FIRST TO SELL A 486CLASS CHIP THAT ANALYSTS SAY WILL RUN AT THE RELATIVELY SLOW SPEED OF ABOUT 33 MEGAHERTZ 9404270093 940427 LETTERS TO THE EDITOR COLERIDGE'S ODD ALIAS ALLOW ME TO INTRODUCE MS CUMBERBATCH TO COLERIDGE WHO AS A DROPOUT FROM CAMBRIDGE IN 1793 ENLISTED IN A DRAGOON REGIMENT HIS NOM DE GUERRE SILAS TOMKYN COMBERBACHE CLOSE ENOUGH ONE WOULD THINK TO BE AWARDED A CIGAR THERE PROBABLY WAS SOME BRIT NONCARIBBEAN ENCOUNTERED OR READ ABOUT WHOSE NAME COLERIDGE BORROWED INCIDENTALLY THIS MOST UNLIKELY DRAGOON THIS UTTER MISFIT AS A SOLDIER WAS BY INTERVENTION DISCHARGED IN SHORT ORDER TO RETURN TO CAMBRIDGE 9404270091 940427 BUSINESS BRIEF ALLIANCE ENTERTAINMENT CORP CONCERN'S 1STQUARTER PROFIT REVERSES YEAREARLIER LOSS ALLIANCE ENTERTAINMENT CORP A MAJOR WHOLESALE DISTRIBUTOR OF RECORDED MUSIC REPORTED A FIRSTQUARTER PROFIT COMPARED WITH A LOSS IN THE YEAREARLIER PERIOD ALLIANCE EARNED 13 MILLION OR FOUR CENTS A SHARE COMPARED WITH A LOSS OF 951000 OR 14 CENTS A SHARE A YEAR AGO REVENUE MORE THAN DOUBLED TO 935 MILLION FROM 346 MILLION THE GAINS IN REVENUE REFLECTED ALLIANCE'S AGGRESSIVE PURCHASES DURING THE LAST SEVEN MONTHS IN OCTOBER 1993 ALLIANCE ACQUIRED CD ONE STOP OF BETHEL CONN ALLIANCE BOUGHT ABBEY ROAD DISTRIBUTORS OF SANTA ANA CALIF IN FEBRUARY ABBEY ROAD'S PERFORMANCE IS INCLUDED IN ALLIANCE'S RESULTS ONLY FROM FEB 4 THROUGH MARCH 31 9404270090 940427 SMALL STOCK FOCUS BUYERS BOOST STOCKS FOR A FOURTH DAY AS LARGE ISSUES TAKE A REST AFTER RALLY BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK BUYERS STUCK WITH SMALLCOMPANY STOCKS FOR A FOURTHCONSECUTIVE SESSION WHILE LARGE ISSUES TOOK A BREATHER AFTER MONDAY'S SHARP RALLY THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION STOCKS ADDED 163 POINTS OR 065 TO 25095 MEANWHILE THE NASDAQ COMPOSITE INDEX CLIMBED 341 POINTS OR 047 HIGHER TO 73421 ADVANCING NASDAQ ISSUES WERE 1704 COMPARED WITH 1364 DECLINERS NASDAQ NATIONAL MARKET VOLUME CLIMBED TO 254534700 SHARES FROM 213489700 MONDAY AND TOTAL TURNOVER WAS AT 284553575 SHARES UP FROM 238293000 MONDAY BUT THE DOW JONES INDUSTRIAL AVERAGE RETREATED MORE THAN SIX POINTS TO 369954 AFTER SURGING 57 MONDAY THE PROFITTAKERS THAT MOVED IN TO SWALLOW UP LARGER ISSUES LEFT SMALLCAP STOCKS RELATIVELY UNSCATHED MARKET PLAYERS CONTINUE TO FEEL MORE COMFORTABLE ABOUT FIRSTQUARTER EARNINGS REPORTS WHICH HELPED TO LIFT SMALLER STOCKS SAID ROBERT ANTOLINI HEAD OF OVERTHECOUNTER TRADING AT DONALDSON LUFKIN & JENRETTE STRONG BONDS ADDED A FURTHER BUYING INCENTIVE THE TREASURY'S BELLWETHER LONG BOND JUMPED NEARLY 1/2 A POINT DEPRESSING ITS YIELD TO 711 THERE IS STILL SOME FURTHER ROOM TO RUN ON THE UPSIDE BEFORE THE MARKET ENCOUNTERS SERIOUS RESISTANCE SAID JAMES R SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH CORP HE ADDED THAT MONEY CURRENTLY TENDS TO BE FLOWING TO THE SAFER HAVENS OF STABLE EQUITIES AND HIGHERQUALITY BONDS AND AWAY FROM EMERGING MARKETS AND JUNK BONDS THE ANALYST BELIEVES THIS TREND SHOULD CONTINUE TO BOOST EQUITIES FOR THE TIME BEING MR SOLLOWAY SAID AN IMPROVING WORLD ECONOMY AND SIGNS OF A TURNAROUND TAKING PLACE IN EUROPE ARE LIKELY TO FAVOR LARGECAP STOCKS OVER SMALLCOMPANY ISSUES THE MAJOR STOCK MARKETS INCLUDING THE NEW YORK STOCK EXCHANGE THE AMERICAN STOCK EXCHANGE AND THE NASDAQ STOCK MARKET ARE ALL CLOSED TODAY IN OBSERVANCE OF THE NATIONAL DAY OF MOURNING FOR FORMER PRESIDENT RICHARD M NIXON WHO DIED FRIDAY IN YESTERDAY'S ACTION CASINO STOCKS AND GAMINGRELATED ISSUES SOARED ON NEWS THAT PRESIDENT CLINTON HAS DECIDED AGAINST NEW TAXES ON GAMBLING REVENUE TO SUBSIDIZE WELFARE REFORM SHOWBOAT NYSE LAS VEGAS GAINED 1 7/8 TO 17 5/8 SCIENTIFIC GAMES HOLDINGS ALPHARETTA GA ROSE 2 1/2 TO 31 3/4 AND BALLY GAMING INTERNATIONAL LAS VEGAS CLIMBED 1 7/8 TO 15 5/8 BALLY ALSO POSTED MUCH IMPROVED FIRSTQUARTER EARNINGS OF 12 CENTS A SHARE UP FROM A 40CENT LOSS A YEAR EARLIER SOME OTHERS TOOK COMFORT FROM STRONG PROFIT REPORTS PINNACLE MICRO SOARED 3 5/8 TO 16 3/8 THE IRVINE CALIF OPTICAL STORAGE SYSTEMS CONCERN POSTED FIRSTQUARTER EARNINGS OF 13 CENTS A SHARE UP FROM PRO FORMA NET INCOME OF NINE CENTS LAST YEAR NETWORK GENERAL JUMPED 2 1/2 TO 19 1/2 AFTER MONDAY'S CLOSE THE MENLO PARK CALIF SOFTWARE CONCERN SAID ITS FISCAL FOURTHQUARTER OPERATING EARNINGS OF 27 CENTS A SHARE EXCEEDED ANALYSTS' ESTIMATES BY TWO CENTS MDL INFORMATION SYSTEMS MOVED UP 1 TO 7 7/8 THE SAN LEANDRO CALIF SOFTWARE CONCERN REPORTED FOURTHQUARTER EARNINGS OF NINE CENTS A SHARE LATE MONDAY COMPARED WITH A 10CENT LOSS LAST YEAR IMPROVED FISCAL THIRDQUARTER NET INCOME OF 14 CENTS A SHARE ON MORE SHARES HELPED OXFORD RESOURCES SHOOT 1 1/4 HIGHER TO 12 IN THE YEAREARLIER PERIOD THE MELVILLE NY AUTOMOBILE LEASING COMPANY POSTED EARNINGS OF EIGHT CENTS GULF SOUTH MEDICAL SUPPLY MOVED 2 1/2 HIGHER TO 27 THE RIDGELAND MISS COMPANY SAID ITS FIRSTQUARTER EARNINGS JUMPED TO 19 CENTS A SHARE FROM 10 CENTS A YEAR EARLIER BUT INLINE FOURTHQUARTER EARNINGS REPORTED MONDAY LOPPED 2 1/2 OFF DIGITAL MICROWAVE'S STOCK PRICE SENDING IT DOWN TO 9 3/4 ANALYSTS HAD EXPECTED NET INCOME OF 11 CENTS A SHARE WHICH THE COMPANY MATCHED EVEN SURPASSING THE 10 CENTS POSTED A YEAR EARLIER MERRILL LYNCH & CO LOWERED ITS RATING ON SAN JOSE CALIFBASED DIGITAL MICROWAVE TO INTERMEDIATETERM NEUTRAL FROM ABOVE AVERAGE GUPTA PLUNGED 9 3/4 OR 42 TO 13 1/2 LATE MONDAY THE MENLO PARK CALIF SOFTWARE DEVELOPER SAID ITS FIRSTQUARTER EARNINGS FELL TO FOUR CENTS A SHARE FROM FIVE CENTS A YEAR EARLIER AND FELL SHORT OF THE NINECENT CONSENSUS ESTIMATE HELD BY WALL STREET GUPTA LED THE NASDAQ MOST ACTIVES LIST WITH VOLUME OF 63 MILLION SHARES COMPARED WITH AVERAGE DAILY TURNOVER OF 315600 TIMBERLAND CRACKED 2 1/4 TO 35 1/2 ON THE BIG BOARD THE HAMPTON NH FOOTWEAR DESIGNER REPORTED A FIRSTQUARTER LOSS OF 14 CENTS A SHARE COMPARED WITH EARNINGS OF 21 CENTS A YEAR EARLIER A DISAPPOINTING EARNINGS OUTLOOK SENT SHARES OF 4TH DIMENSION SOFTWARE TUMBLING 1 3/8 TO 6 3/8 THE ISRAELBASED SOFTWARE COMPANY PROJECTS 1994 NET INCOME WILL FALL SHORT OF THE 16 CENTS A SHARE IT PREVIOUSLY ESTIMATED AND THE 68 CENTS REPORTED LAST YEAR IN OTHER NEWS US FACILITIES A COSTA MESA CALIF INSURANCE COMPANY JUMPED 2 9/16 TO 13 9/16 FIDELITY NATIONAL FINANCIAL SAID IT OFFERED TO ACQUIRE US FACILITIES IN A CASH MERGER FOR 15 A SHARE US FACILITIES SAID IT WILL CALL A BOARD MEETING TO CONSIDER THE PROPOSAL FIDELITY IRVINE CALIF EASED 3/8 TO 17 1/2 ON THE NEW YORK STOCK EXCHANGE EA ENGINEERING SCIENCE & TECHNOLOGY JUMPED 3 TO 16 1/4 THE HUNT VALLEY MD COMPANY SAID IT HAS RECEIVED A CONTRACT FROM THE AIR FORCE COMBAT COMMAND WITH A POTENTIAL CUMULATIVE VALUE OF UP TO 100 MILLION 9404270088 940427 BUSINESS BRIEFS LG&E ENERGY CORP REDUCED ITS TOTAL WORK FORCE BY ALMOST 12 TO ABOUT 2650 FROM 3000 LG&E TOOK A ONETIME CHARGE OF 18 MILLION RELATED TO THE WORKFORCE REDUCTION AGAINST ITS FIRSTQUARTER NET INCOME OF 285 MILLION OR 86 CENTS A SHARE WHICH IT REPORTED YESTERDAY SAFEGUARD SCIENTIFICS INC COMPLETED THE SALE OF ITS MICRO DECISIONWARE INC UNIT TO SYBASE INC OF EMERYVILLE CALIF FOR ABOUT 25 MILLION IN STOCK EVERGREEN MEDIA CORP COMPLETED THE ACQUISITION OF K101 FM RADIO STATION IN SAN FRANCISCO FROM BAY BROADCASTING CORP FOR 45 MILLION 9404270087 940427 INTERNATIONAL BRIEF AIR FRANCE MERIDIEN HOTEL UNIT STATES PREFERENCE FOR FORTE OFFER MERIDIEN THE HOTEL UNIT OF STATEOWNED AIR FRANCE HAS SENT A CLEAR MESSAGE THAT IT PREFERS BRITAIN'S FORTE PLC OF THREE COMPANIES BIDDING FOR MERIDIEN THE FORTE OFFER IS THE BEST SOLUTION FOR BUILDING THE FUTURE OF THE CHAIN MERIDIEN CHAIRMAN JEANDIDIER BLANCHET AFFIRMED HE NOTED THAT THE SYNERGIES AVAILABLE VIA FORTE IN LUXURY HOTELS CAN'T BE MATCHED BY THE OTHER TWO BIDDERS FRANCE'S ACCOR SA AND KEMPINSKI AG OF GERMANY AIR FRANCE HAD NO COMMENT ALTHOUGH AIR FRANCE CHAIRMAN CHRISTIAN BLANC HAS SAID IN THE PAST THAT THE CARRIER IS PREPARED TO SELL MERIDIEN TO THE HIGHEST BIDDER THE AIRLINE WHICH POSTED LOSSES OF 75 BILLION FRANCS 13 BILLION IN 1993 AND HAS RACKED UP DEBTS OF 37 BILLION FRANCS IS IN DIRE NEED OF CASH FORTE CHAIRMAN ROCCO FORTE WAS IN PARIS MONDAY TO PUSH HIS OFFER WHICH REPORTEDLY TOTALS SOME 18 BILLION FRANCS 9404270086 940427 BUSINESS BRIEF CIRRUS LOGIC INC EARNINGS CLIMBED SIXFOLD IN THE FISCAL FOURTH QUARTER CIRRUS LOGIC INC SAID STRONG ACROSSTHEBOARD GROWTH IN ITS PRODUCT LINES INCREASED FISCAL FOURTHQUARTER EARNINGS NEARLY SIXFOLD FROM A YEAR EARLIER CIRRUS REPORTED EARNINGS IN THE QUARTER ENDED APRIL 2 OF 146 MILLION OR 50 CENTS A SHARE COMPARED WITH THE YEAREARLIER 25 MILLION OR 10 CENTS A SHARE FOURTHQUARTER EARNINGS WERE AT THE TOP END OF ANALYSTS' EXPECTATIONS REVENUE FOR THE QUARTER ROSE 63 TO 1702 MILLION FROM 1046 MILLION THE FREMONT CALIF MAKER OF COMPUTER CHIPS AND OTHER PRODUCTS SAID IT HAD REVENUE GROWTH IN ALL ITS PRODUCT LINES SALES OF ITS MASS STORAGE PRODUCTS HAD RECOVERED FROM RECENT PROBLEMS IN THE HARDDISK MARKET IT SAID ON THE NASDAQ STOCK MARKET CIRRUS SHARES FELL 1375 OR 4 TO CLOSE AT 33 9404270084 940427 TEXAS JOURNAL WINNERS & LOSERS SHELL OIL THE COMPANY BEGAN PUMPING OIL AND GAS FROM THE DEEPEST UNDERWATER FIELD IN US HISTORY IN THE GULF OF MEXICO JIMMY JOHNSON LESS THAN A MONTH AFTER LEAVING THE DALLAS COWBOYS THE SUPER BOWL COACH WON A FAT CONTRACT AS AN ANALYST FOR FOX SPORTS HOUSTON MUSLIMS HOUSTON ROCKETS BASKETBALL STAR HAKEEM OLAJUWON IS CONSIDERING TURNING THE OLD FRANKLIN BANK BUILDING INTO A MOSQUE THRIFT REGULATORS A TREASURY DEPARTMENT REPORT SLAMMED THE DALLAS OFFICE OF THE RTC FOR ITS HANDLING OF THE S&L CLEANUP JOHNSON SPACE CENTER MORE THAN 50 PEOPLE SOUGHT MEDICAL ASSISTANCE AFTER THEY WERE EXPOSED TO A TOXIC CLOUD OF CHEMICALS FROM THE SPACE SHUTTLE 9404270083 940427 WHO'S NEWS BANKAMERICA CORP BANKAMERICA CORP SAN FRANCISCO JOSEPH BAUMAN HEAD OF BUSINESS DEVELOPMENT FOR CITIBANK'S DERIVATIVES BUSINESS AND CHAIRMAN OF THE INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION WILL JOIN THIS BANK AS HEAD OF ITS US FINANCIAL ENGINEERING AND RISK MANAGEMENT GROUP A NEWLY CREATED POSITION HE WILL REPORT TO ROBERT D MCKNEW HEAD OF US CAPITAL MARKETS AND BE BASED IN SAN FRANCISCO THE APPOINTMENT OF MR BAUMAN 44 YEARS OLD REFLECTS BANK OF AMERICA'S CONTINUED EXPANSION OF ITS DERIVATIVES BUSINESS MR BAUMAN HAD BEEN WITH CITICORP'S CITIBANK UNIT SINCE 1992 PRIOR TO THAT HE WAS A SENIOR EXECUTIVE IN GLOBAL DERIVATIVES AT CHEMICAL BANKING CORP MR BAUMAN WILL HAVE TO RESIGN AS HEAD OF THE ISDA TRADE GROUP AS A RESULT OF CHANGING EMPLOYERS 9404270082 940427 IN HIS ROLE AS FOX JOGGER NIGEL WATKIN IS FREQUENTLY DOGGED BLOODHOUNDS NOW CHASE PREY OF THE TWOLEGGED SORT ACROSS ENGLISH COUNTRYSIDE BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL CRANWELL ENGLAND THINGS AREN'T LOOKING GOOD FOR NIGEL WATKIN JUST NOW HE IS RUNNING SWEATY MUDDY AND BLEEDING FROM A CUT ON HIS NOSE ACROSS A FIELD AND INTO A BITING WIND OVER HIS SHOULDER HE SEES A PACK OF BLOODHOUNDS CHARGING TOWARD HIM FARTHER BACK HE HEARS THE HUNTMASTER'S HORN AND THE WHIPS OF 45 MOUNTED HUNTERS DRIVING THE HOUNDS TO THE KILL THE HUNTMASTER CHANTS ON ON ON FINALLY THE BAYING HOUNDS CATCH MR WATKIN AND START LICKING AND NUZZLING HIM MR WATKIN PETS HIS PANTING PURSUERS THEN HUNTERS AND HUNTED HOUNDS EXCLUDED BREAK FOR MINCED PIES AND PORT IT'S A TYPICAL SUNDAY AFTERNOON FOR MR WATKIN HUMAN PREY I'VE BEEN HUNTED 320 MILES THIS SEASON AND I'VE BEEN KILLED 73 TIMES TO DATE HE SAYS WEARING A RED TSHIRT IDENTIFYING HIM AS QUARRY I GET HOUNDED EVERY SUNDAY THE LEGEND ON THE SHIRT READS THE 36YEAROLD MACHINIST A TOPNOTCH MARATHONER SAYS HE VOLUNTEERS TO BE HUNTED BECAUSE IT MAKES THE ADRENALINE PUMP MEN LIKE MR WATKIN AND SOME WOMEN TOO ARE BECOMING THE PREY OF CHOICE FOR BRITISH HUNTERS WITH FOX HUNTING POLITICALLY UNPOPULAR AND BRITAIN TOO CROWDED REALLY FOR GOOD HUNTS HUNTERS HAVE FOUND THAT PURSUING JOGGERS ALLOWS THEM TO DO THEIR THING WITHOUT MAKING A MESS THERE ARE NOW 10 BLOODHOUND PACKS IN BRITAIN DEVOTED TO HUNTING THE CLEAN BOOT THE NATURAL HUMAN SCENT MEMBERS OF BRITAIN'S 194 FOXHOUND GROUPS WHICH KILL ABOUT 20000 FOXES A YEAR FIND THE ERSATZ HUNT TOO TAME IT'S A NICOTINE PATCH INSTEAD OF A GOOD CIGAR SAYS RWF POOLE A FOX HUNTER AND AUTHOR HUNTING A PERSON WOULDN'T BE TERRIBLY INTERESTING UNLESS YOU WERE DOING IT FOR REAL JOHN B GLASS CLERK OF THE MASTERS OF FOXHOUNDS ASSOCIATION OF AMERICA SAYS THERE ISN'T ANY INTEREST IN ORGANIZED PEOPLEHUNTING IN THE US SOME SAY IT'S AKIN TO KISSING YOUR SISTER SAYS MR GLASS WHO QUICKLY ADDS I DON'T KNOW I DON'T HAVE A SISTER THE UK'S POWERFUL ANIMALRIGHTS MOVEMENT SEES THINGS DIFFERENTLY THE LEAGUE AGAINST CRUEL SPORTS CALLS HUMANHUNTING HUMANE AND PREDICTS IT WILL REPLACE FOX HUNTING A BILL OUTLAWING FOX HUNTING NARROWLY FAILED IN PARLIAMENT IN 1992 AND THE LABOR PARTY STILL HOPES TO BAN THE SPORT THE CRANWELL HUNTERS INSIST THEY HAVE NOTHING AGAINST BLOOD SPORTS THEY JUST FIND FOX HUNTING BORING PHILIP BROUGHTON THE HUNTMASTER SAYS HE AND HIS WIFE WENDY FORMED THE PACK THREE YEARS AGO AFTER A REALLY AWFUL DAY OF FOX HUNTING THEY DIDN'T FIND A SINGLE FOX AND HUNTERS SPENT THE DAY GRUMBLING TRACKING PEOPLE INSTEAD OF FOXES GUARANTEES THE HUNTERS A CHASE AND WITH HUMAN QUARRY FOLLOWING A PREDETERMINED ROUTE USUALLY OVER UNFARMED FIELDS HUNTERS NEEDN'T TRAMPLE CROPS OR CROSS BUSY ROADS SADLY MAN IS MAKING PROGRESS AND WE HAVE GOT TO ADJUST OUR LIFESTYLE A LITTLE BIT SAYS CHRISTOPHER COYNE CHAIRMAN OF THE MASTERS OF BLOODHOUNDS AND MASTER OF A DIFFERENT PERSONHUNTING PACK HE SAYS THE FUTILITY OF FOX HUNTING BECAME CLEAR ON A RECENT HUNT WHEN THE FOX LED THE HOUNDS INTO A POPULATED AREA AND INTO A SWIMMING POOL WHOSE OWNER WAS NOT AMUSED HUNTING HUMAN PREY ON THE OTHER HAND LACKS SPONTANEITY THOUGH THEIR SPORT IS NOT AS ARTIFICIAL AS DRAG HUNTING WHICH RELIES ON ANISE OR OTHER POWERFUL SCENTS DRAGGED ALONG THE GROUND THE CRANWELL HUNTERS BUILD HURDLES BEFORE THE RACE AND TO PREVENT INJURY KEEP THEM NO HIGHER THAN THREE FEET UNLIKE A FOX THE CRANWELL QUARRY IS TRACKED BY A LAND ROVER EQUIPPED WITH A CELLULAR TELEPHONE AND DRIVEN BY A QUARRY MASTER WHO STOPS TRAFFIC AND MAKES SURE EVERYONE FOLLOWS THE SCRIPT IF THE HOUNDS LOSE THE SCENT THE PREY HIDES IN A DITCH AND WAITS THIS QUARRY IS TRYING TO GET CAUGHT EXPLAINS HERMAN RUIGSNEAARS THE CAR MARSHAL WHO LEADS BINOCULARTOTING SPECTATORS TO PREARRANGED KILL POINTS MARKED IN PENCIL ON HIS MAP IN HIS ISUZU THIS IS MORE OF A FAMILY DAY OUT HE SAYS MR BROUGHTON AN ELECTRICAL CONTRACTOR RECRUITED HIS QUARRY FROM A LOCAL RUNNING GROUP I TOLD THEM I'D LIKE THEM TO BECOME FOXES MR BROUGHTON SAYS BUT RUNNERS WHO ARE PAID NOTHING TO DO THIS WERE SKEPTICAL ABOUT BEING DOGGED EVEN THOUGH BLOODHOUNDS ARE LESS LIKELY TO BITE THAN FOXHOUNDS AND TRAINED TO BE GENTLE THEY CAN RUN AT 30 MILES PER HOUR WITH HUMAN BEINGS CLOCKING 10 THE ODDS DIDN'T SEEM FAIR SOME VOLUNTEERS TRIED IT ONCE AND THEN DROPPED OUT THE FIRST TIME I WAS A BIT FRIGHTENED WHEN THEY STARTED COMING AT ME ADMITS ALAN BUCKBERRY A CHICKENFACTORY WORKER WHO HAS STUCK WITH THE SPORT IT WAS A GOOD FEELING WHEN THEY STARTED LICKING ME INSTEAD OF EATING ME HE SAYS HUNTERS GATHER AT THE BROUGHTON FARM AT NOON FOR COCKTAILS WEARING THE REQUIRED HUNTING ATTIRE RED BLACK OR PLAID COATS DEPENDING ON RANK RED BEING THE HIGHEST WHITE PANTS BOOTS AND OFTEN BRANDY FLASKS SENSING ACTION THE 30 BLOODHOUNDS HOWL AND CLAMBER OVER ONE ANOTHER IN THE KENNEL I GAVE UP FLYING TO DO THIS SAYS PAUL GARROD AN ENGINEER AND MEMBER OF THE GROUP HIS WIFE ANNE JOINS THE HUNT FOR A LAUGH A JOKE AND A DRINK AFTER LETTING THE HOUNDS SNIFF HIM MR WATKIN CARRYING A POUCH OF DOG TREATS FOR THE HOUNDS WHEN THEY FIND HIM SETS OFF WITH MR BUCKBERRY RUNNERS USUALLY BUT NOT ALWAYS PARTICIPATE IN PAIRS WITH A 15MINUTE HEAD START THE RUNNERS MAKE LIKE FOXES ZIGZAGGING THROUGH FIELDS HOPPING HEDGES AND CROSSING ROADS BUT ALWAYS FOLLOWING THE PRESCRIBED COURSE THEY DON'T WANT TO OUTFOX THE HOUNDS BUT THAT HAS HAPPENED ACCIDENTALLY IN ONE HUNT THIS SEASON BOTH RUNNERS WORE NEW SHOES AND THE HOUNDS NEVER CAUGHT A WHIFF OF THEM ONCE THE QUARRY HAS LEFT AND THE RIDERS HAVE MOUNTED A SERVER CIRCULATES AMONG THE HORSES WITH A TRAY OF SHERRY AND PORT A HUNTER FIGHTS THE WIND TO LIGHT HER CIGARETTE THEN THE HEAVYSET MR BROUGHTON LEADS THE HUNTERS OFF FOR THE FIRST OF FOUR LINES OF FOUR MILES EACH THE FIRST LINE BORROWING A CROSSCOUNTRY COURSE FROM THE LOCAL AIRFORCE BASE DETERIORATES WHEN THE HOUNDS LOSE THE SCENT MR BROUGHTON WHO DREW THE MAP HIMSELF HAS TO STEER THEM IN THE RIGHT DIRECTION THE SECOND LINE PROVES MUCH BETTER WITH THE KILL OCCURRING JUST BEFORE THE HALFTIME REFRESHMENTS THAT WAS BRILLIANT EXCLAIMS MR BROUGHTON KILLED 'EM EARLY THE KILLS ON THE FINAL TWO LINES ALSO TAKE PLACE AS SCHEDULED THOUGH ONE HOUND GETS LOST AND ONE HORSE GETS LOOSE WHEN ITS RIDER FALLS AT THE END MR BROUGHTON BLOWS HIS TRUMPET AND TOSSES THE HOUNDS A CHUNK OF BEEF LIVER THE QUARRY HIMSELF IS FLUSHED AND CUT FROM SCRAMBLING THROUGH A HEDGE BUT OTHERWISE IS UNSCATHED EASY DAY MR WATKIN SAYS BRUSHING THE BURS FROM HIS TIGHTS AS THE HUNTING PARTY RETIRES FOR MORE REFRESHMENTS BACK AT THE FARM MRS BROUGHTON PUTS A TIRED HOUND IN THE KENNEL SHE PRONOUNCES THE DAY'S HUNT A SUCCESS NIGEL WAS KILLED FOUR TIMES SHE SAYS AND HE'S STILL COMING BACK FOR TEA 9404270081 940415 LEISURE & ARTS TELEVISION THE NAME'S THE SAME BUT NOT THE FAMILY BY CANDACE CUMBERBATCH TAKE IT FROM ME THE CUMBERBATCH FAMILY FROM QUEENS NY IN THE NEW SHOW 704 HAUSER MONDAYS 8309 PM EDT ON CBS IS IN NO WAY THE REAL THING I OUGHT TO KNOW SINCE I'M SOMEWHAT OF AN EXPERT I AM A MEMBER OF A TIGHTLY KNIT CUMBERBATCH FAMILY THAT HAS LIVED IN QUEENS FOR MORE THAN 20 YEARS AND I CAN TELL IMPOSTORS FROM A MILE OFF MY PARENTS BROTHER AND I WERE INITIALLY THRILLED AND AMUSED WHEN WE FOUND OUT THAT OUR UNCOMMON LAST NAME WAS GOING TO GO UP IN LIGHTS THIS YEAR WHEN 704 HAUSER PREMIERED BUT AS SOON AS WE GOT A SNEAK PREVIEW OF THE SHOW WE REALIZED THAT OUR TV COUNTERPARTS ARE WAY OFF TARGET IN SEVERAL CRUCIAL AREAS I GUESS I SHOULD HAVE SUSPECTED SOME SURPRISES SINCE 704 HAUSER ST IS WHERE THE INFAMOUS BIGOT ARCHIE BUNKER LIVED IN THE LONGRUNNING SHOW ALL IN THE FAMILY FOR STARTERS THE TV CUMBERBATCHES DON'T HAVE A DAUGHTER THERE'S ERNEST CUMBERBATCH JOHN AMOS HIS WIFE ROSE LYNNIE GODFREY THEIR SON THURGOOD GOODIE MARSHALL TE RUSSELL AND HIS GIRLFRIEND CHERLYN MARKOWITZ MAURA TIERNEY BUT THERE'S NO DAUGHTER NOT EVEN A LONGDISTANCE DAUGHTER WHO'S AWAY AT SCHOOL STUDYING THIS IS HARDLY THE FAMILY'S BIGGEST FLAW BUT IT'S ONE THAT I FIND PARTICULARLY HARDHITTING AFTER ALL I KNOW THE BALANCE HUMOR AND GRACE THAT ONLY A DAUGHTER CAN ADD TO A CUMBERBATCH HOUSEHOLD BESIDES BY OMITTING A DAUGHTER FROM THE CAST THE PRODUCERS HAVE ROBBED ME OF MY CHANCE TO SEE THE HOLLYWOOD VERSION OF MYSELF AS IF THAT WEREN'T BAD ENOUGH THE TV CUMBERBATCHES AREN'T OF WEST INDIAN HERITAGE THIS IS A SEVERE FLAW THAT RUFFLED MY OWN CUMBERBATCH FAMILY AND WILL CERTAINLY RAISE THE EYEBROWS OF OTHER GENUINE CUMBERBATCHES MY FATHER IS FROM BARBADOS AND I HAVE NEVER MET ANY CUMBERBATCHES WHO DIDN'T COME FROM THE CARIBBEAN IN FACT WHENEVER I HAPPEN TO MEET A NEW CUMBERBATCH WE INEVITABLY END UP TALKING ABOUT EXACTLY WHERE IN THE WEST INDIES OUR RELATIVES RESIDE SO THAT WE CAN COMPARE OUR FAMILY TREES BECAUSE THE TV CUMBERBATCHES AREN'T FROM THE CARIBBEAN THERE'S NO MELODY OF WEST INDIAN ACCENTS TO SOFTEN THE RUMBLE OF THEIR CONSTANT BICKERING OR AT LEAST ADD A LITTLE EXTRA HUMOR TO THEIR LIVES A CUMBERBATCH HOME WITHOUT WEST INDIAN ACCENTS SEEMS LIKE A VIRTUAL IMPOSSIBILITY TO ME MY FATHER HAS LIVED IN NEW YORK CITY SINCE THE 1960S AND IF ANYTHING HIS INFECTIOUS ACCENT SEEMS TO BE THICKENING NOT FADING IN THE PREMIERE EPISODE ROSE CUMBERBATCH SERVED CORNISH HENS AND RAVIOLI BUT THERE WASN'T A BOWL OF PEAS AND RICE ANYWHERE IN SIGHT ANY CUMBERBATCH EXPERT KNOWS THAT THIS IS ANOTHER VIRTUAL IMPOSSIBILITY I MYSELF KNOW HOW TO MAKE ONLY ONE DISH PEAS AND RICE A CUMBERBATCH HOME WITHOUT PEAS AND RICE IS ABOUT AS LIKELY AS A PIZZA HUT WITHOUT PIZZA WHILE THERE ARE GLARING DIFFERENCES IN THE STRUCTURE AND HERITAGE OF THE FICTIONAL CUMBERBATCHES AND MY OWN FAMILY THE PIVOTAL CONTRAST INVOLVES THE IMPACT OF RELIGION ON THE HOUSEHOLDS CHRISTIANITY FOR THE 704 HAUSER ST CUMBERBATCHES IS SIMPLY ANOTHER SOURCE OF CONFLICT AMONG OTHER ONGOING ARGUMENTS ABOUT RACE MR CUMBERBATCH'S LIBERAL VIEWS AND GOODIE'S CONSERVATIVE BELIEFS ROSE IS THE ONLY ONE WHO IS A DEDICATED CHURCHGOER AND HER HUSBAND MOCKS HER PASTOR ENDLESSLY IN MY FAMILY CHRISTIANITY IS NEITHER A POINT OF CONFLICT NOR A LAUGHING MATTER IT'S THE TIE THAT KEEPS US CLOSE FOSTERS HARMONY IN OUR HOUSEHOLD AND HELPS US APPRECIATE OTHER CULTURES ON THIS POINT MORE THAN ANY OTHER THE TV CUMBERBATCHES AND MY FAMILY ARE LIKE NIGHT AND DAY WE ALL ATTEND CHURCH TOGETHER AND USE WHAT WE LEARN TO GET ALONG NOT ARGUE WITH ONE ANOTHER MY OWN FATHER AND BROTHER SEE EYE TO EYE ON MOST THINGS AND WHEN THEY DO DISAGREE THEY TREAT EACH OTHER WITH GREAT RESPECT THERE'S NO NAME CALLING AT OUR HOUSE MY MOTHER AND I CAN EASILY FINISH EACH OTHER'S SENTENCES AND DECIPHER EACH OTHER'S THOUGHTS WE SOMETIMES DRESS IN MATCHING OUTFITS WHEN IT COMES TO RACE WE DON'T SEE EVERYTHING IN TERMS OF BLACKS AND WHITES THE WAY THE FICTIONAL CUMBERBATCHES OFTEN SEEM TO DO WE RELISH STUDYING ABOUT DIFFERENT PEOPLES AND WAYS OF LIFE OCCASIONALLY DINNERTIME CONVERSATIONS AT OUR HOUSE MIGHT CONCERN ANYTHING FROM SINGAPORE'S STRICT LAWS TO THE MASAI PEOPLE OF KENYA IF YOU DROPPED BY ON A WEEKEND YOU MIGHT FIND US DRINKING TURKISH APPLE TEA OR CATCH MY BROTHER STUDYING ASIA THE 704 HAUSER ST CUMBERBATCHES ACT AS IF THEY'VE NEVER BEEN ON THE SAME WAVELENGTH A DAY IN THEIR LIVES OR HAD MUCH APPRECIATION FOR THE ARRAY OF CULTURES JUST BEYOND THEIR DOOR IT'S VERY CLEAR THAT THEY'RE CUT FROM THE SAME CLOTH AS ARCHIE BUNKER AND HIS FAMILY IT'S TOO BAD THAT THE TV CUMBERBATCHES ARE FICTIONAL I'D LIKE TO INVITE THEM OVER FOR SOME PEAS AND RICE A LONG TALK AND A TASTE OF WHAT GENUINE CUMBERBATCH FAMILY LIFE IS REALLY LIKE MS CUMBERBATCH IS A MUNICIPAL BOND REPORTER WITH THE DOW JONES CAPITAL MARKETS REPORT SEE RELATED LETTER LETTERS TO THE EDITOR COLERIDGE'S ODD ALIAS WSJ APRIL 27 1994 9404150088 YY94 MM04 9404270080 940427 BAT TO BUY RIVAL AMERICAN BRANDS DIVISION TOBACCO COMPANY PURCHASE IS PLANNED FOR 1 BILLION CIGARETTE STOCKS CLIMB BY STAFF REPORTERS EBEN SHAPIRO IN NEW YORK AND JANET GUYON IN LONDON BA T INDUSTRIES PLC SAID IT AGREED TO ACQUIRE THE US TOBACCO BUSINESS OF AMERICAN BRANDS INC FOR 1 BILLION A CONSOLIDATION THAT IS EXPECTED TO INCREASE INDUSTRY PROFIT BY ELIMINATING A SMALL BUT DISRUPTIVE COMPETITOR THE BRUISED TOBACCO STOCKS ROSE ON NEWS OF THE DEAL WHICH STILL REQUIRES US GOVERNMENT ANTITRUST CLEARANCE WHAT THIS PROVES IS THAT TOBACCO IS A VERY VIABLE BUSINESS WITH MAJOR PLAYERS INCREASING THEIR EXPOSURE SAYS CHARLES CORY A MANAGING DIRECTOR AT MORGAN STANLEY GROUP INC THE INVESTMENT BANKING FIRM THAT ADVISED AMERICAN BRANDS SOME TOBACCO ANALYSTS CALLED THE DEAL THE BEST PIECE OF NEWS FOR TOBACCO COMPANIES IN A YEAR OF OTHERWISE RELENTLESS NEGATIVE DEVELOPMENTS IT MEANS THE OLIGOPOLY WILL BE IN PLACE FOR THE NEXT FEW YEARS SAYS GARY M BLACK AN ANALYST WITH SANFORD C BERNSTEIN & CO LONDONBASED BAT ONE OF THE WORLD'S BIGGEST TOBACCO COMPANIES AND ALREADY THE THIRDLARGEST US CIGARETTE MARKETER WITH ITS KOOL AND GPC DISCOUNT BRAND IS EXPANDING IN THE FACE OF UNPRECEDENTED GOVERNMENT AND SOCIAL PRESSURE ON THE INDUSTRY BA T EXECUTIVES BELIEVE THE WORST IS PAST IN THE US IN TERMS OF ATTACKS ON THE TOBACCO INDUSTRY STILL MARTIN BROUGHTON GROUP CHIEF EXECUTIVE OF BAT CONCEDES IF YOU WEREN'T IN THE AMERICAN TOBACCO BUSINESS YOU PROBABLY WOULDN'T BE LOOKING TO GET IN BUT HE ADDS THAT IS THE GREAT ATTRACTION IT MAKES IT A BUYER'S MARKET AMERICAN TOBACCO CO IS ONE OF THE SMALLEST AND WEAKEST US CIGARETTE COMPANIES WITH A PORTFOLIO OF FADING BRANDS INCLUDING PALL MALL LUCKY STRIKE AND TAREYTON IN THE 1950S AND 1960S AMERICAN TOBACCO BRANDS WERE BESTSELLERS WITH THE GRAMMATICALLY TORTURED BUT HUGELY POPULAR SLOGAN US TAREYTON SMOKERS WOULD RATHER FIGHT THAN SWITCH LARGER COMPETITORS AND INVESTORS PRAISED THE SALE OF AMERICAN BRANDS' NETTLESOME AMERICAN TOBACCO UNIT STRUGGLING TO COMPETE WITH BIG BRANDS LIKE MARLBORO AND CAMEL AMERICAN TOBACCO UNDERCUT ITS LARGER RIVALS' PRICES AND SOLD LOWPROFIT DISCOUNT CIGARETTES AMERICAN BRANDS WAS THE PRIMARY EVIL IN TERMS OF PRICING SAYS ROY D BURRY A TOBACCO ANALYST AT KIDDER PEABODY & CO YOU WILL HAVE RISING PROFIT MARGINS GOING FORWARD THE PURCHASE WILL BOOST BAT'S SHARE OF THE US CIGARETTE MARKET TO ABOUT 17 FROM ABOUT 11 GIVING IT A MUCH STRONGER POSITION FROM WHICH TO COMPETE WITH THE TOP TWO COMPANIES PHILIP MORRIS COS AND RJR NABISCO HOLDINGS CORP IN 1993 PHILIP MORRIS HAD 40 OF THE MARKET WHILE RJR HAD ABOUT 30 ACCORDING TO WHEAT FIRST SECURITIES MR BLACK THE BERNSTEIN ANALYST SAID BA T IS LIKELY TO LAY OFF TWOTHIRDS OF AMERICAN TOBACCO'S 3075PERSON WORK FORCE AND CLOSE ITS MAIN TOBACCO FACTORY BA T SAID IT EVENTUALLY WOULD LOOK FOR WAYS TO ELIMINATE DUPLICATION BUT DIDN'T PROVIDE ANY DETAILS ANALYSTS SAID THAT AMERICAN BRANDS DECIDED IT WOULD MAKE MORE SENSE TO CASH OUT RATHER THAN CONTINUE TO FIGHT IT OUT THEY HAD A CHOICE THEY COULD DIE QUICKLY AND RICH OR SLOWLY AND POOR SAYS MR BURRY OF KIDDER PEABODY AMERICAN BRANDS DENIED THAT IT WAS ABANDONING THE INDUSTRY BECAUSE OF STEPPED UP GOVERNMENT ATTACKS ON CIGARETTES BUT SAID SELLING THE BUSINESS WILL IMPROVE ITS LONGTERM PROFIT PROSPECTS AND ELIMINATE INSTABILITY STOCK PRICES JUMP BA T STOCK ROSE 125 PENCE TO 4565 PENCE 680 IN LONDON STOCK EXCHANGE TRADING AND IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING AMERICAN BRANDS STOCK ROSE 2875 OR 9 TO 34625 PHILIP MORRIS CLIMBED 2 OR 38 TO 5425 AND RJR WAS UP 375 CENTS OR 58 TO 6875 ANALYSTS SAY THAT ADDITIONAL CONSOLIDATION IN THE TOBACCO INDUSTRY IS LIKELY WITH THE SMALL AND STRUGGLING LIGGETT GROUP THE NEXT LIKELY COMPANY TO BE ACQUIRED LIGGETT WITH ONLY 25 OF THE MARKET IS SUCH A SMALL PLAYER THAT ANY MERGER WOULDN'T BE AS SIGNIFICANT AS THIS TRANSACTION LIGGETT DECLINED COMMENT ANALYSTS WERE DIVIDED ON WHETHER THE ACCORD MADE DEALS INVOLVING OTHER TOBACCO COMPANIES MORE LIKELY BOTH PHILIP MORRIS AND RJR ARE CONSIDERING SEPARATING THEIR FOOD AND TOBACCO BUSINESSES S LEIGH FERST AN ANALYST AT PRUDENTIAL SECURITIES INC SAID THE REALLY LOW VALUATION PLACED ON AMERICAN BRANDS' TOBACCO BUSINESS DID NOT BODE WELL FOR A POTENTIAL SEPARATION OF PHILIP MORRIS OR RJR MS FERST SAYS IT'S GOT TO MAKE MANAGEMENT REVISIT THEIR ASSUMPTIONS ON BREAKUP VALUE HOWEVER LAWRENCE ADELMAN DEAN WITTER REYNOLDS INC SAID THE MARKET REACTION UNQUESTIONABLY PUTS ADDITIONAL PRESSURE ON PHILIP MORRIS'S BOARD TO SPLIT THE FOOD AND TOBACCO BUSINESS THE BOARD HAS TO BE THINKING THAT STOCKHOLDERS COULD REALLY BE UPSET IF WE DON'T DO SOMETHING LIKE THIS SAYS MR ADELMAN NOTING THE AMERICAN BRANDS' STOCK JUMPED ON THE NEWS OF THE DEAL IF APPROVED BY THE US GOVERNMENT NO UK APPROVAL IS REQUIRED THE DEAL DOES POSE SOME RISK FOR THE TWO TOBACCO GIANTS WHICH HAVE BEEN STRUGGLING TO STABILIZE CIGARETTE PRICES AND BUILD THEIR PREMIUM MARKET SHARE BAT'S GPC BRAND IS THE BESTSELLING DISCOUNT BRAND IN THE COUNTRY IF A SIGNIFICANT TAX INCREASE IS PASSED CONSUMERS COULD FLOCK TO CHEAPER CIGARETTES A SHIFT THAT COULD BE EXPLOITED BY A MORE MUSCULAR BAT THE PURCHASE WILL GIVE BA T WORLDWIDE CONTROL OVER THE LUCKY STRIKE AND PALL MALL BRANDS WHICH BA T OWNS OUTSIDE THE US LAST YEAR BA T SWAPPED ITS BENSON & HEDGES BRAND IN CONTINENTAL EUROPE WITH AMERICAN BRANDS FOR THE LUCKY STRIKE AND PALL MALL BRANDS IN FRANCE AND A FEW OTHER COUNTRIES MR BROUGHTON SAID BA T NOW WILL TRY TO ENHANCE THE US IMAGE OF LUCKY STRIKE FILTERS WHICH ARE MARKETED IN THE US AS A VALUE BRAND BUT AS A PREMIUM BRAND OUTSIDE THE COUNTRY AMERICAN BRANDS WILL RETAIN BENSON & HEDGES AS PART OF ITS GALLAHER BUSINESS WHICH IS THE UK'S LEADING CIGARETTE COMPANY MR BROUGHTON WOULDN'T SAY IF BA T WANTED TO BUY GALLAHER ONLY THAT HE LEARNED IN THE COURSE OF DISCUSSIONS WITH AMERICAN BRANDS THAT GALLAHER ISN'T FOR SALE HOWEVER A SPOKESMAN FOR AMERICAN BRANDS SAID THE COMPANY CONSTANTLY REVIEWED ITS BUSINESSES ANALYSTS IN THE US SPECULATE THAT RJR MAY BE INTERESTED IN BUYING THE GALLAHER BUSINESS RJR WHICH IS RAISING 2 BILLION IN A STOCK OFFERING THAT COULD BE USED FOR A SPINOFF OR ACQUISITIONS DECLINED TO COMMENT BA T HAD BEEN RUMORED TO BE INTERESTED IN RJR'S TOBACCO BUSINESS WHILE THERE IS A LOT OF TALK THAT SAYS REYNOLDS IS UP FOR SALE WE COULD NOT BUY RJR BECAUSE OF ANTITRUST REASONS MR BROUGHTON SAID AMERICAN BRANDS' OTHER BUSINESSES INCLUDE ACCO OFFICE PRODUCTS JIM BEAM BRANDS SPIRITS MASTER LOCK AND FRANKLIN LIFE INSURANCE GREG STEINMETZ IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9404270077 940427 TECHNOLOGY BRIEF AST RESEARCH INC NET INCOME SHOWS A GAIN OF 20 FOR FISCAL 3RD PERIOD AST RESEARCH INC BOOSTED BY STRONG PERSONAL COMPUTER PRODUCTS SALES SAID NET ROSE 20 IN ITS FISCAL THIRD QUARTER THE IRVINE CALIF COMPANY REPORTED EARNINGS OF 132 MILLION OR 38 CENTS A SHARE FOR THE PERIOD ENDED APRIL 2 COMPARED WITH NET OF 11 MILLION OR 35 CENTS A SHARE IN THE YEAREARLIER QUARTER SALES ROSE 60 TO 5913 MILLION FROM 3703 MILLION REFLECTING IN PART AST'S ACQUISITION LAST SUMMER OF TANDY CORP'S PERSONAL COMPUTER BUSINESS LIKE OTHER BIG PC MAKERS AST ALSO CONTINUES TO BENEFIT AS CUSTOMERS SHIFT TO BRANDNAME PCS FROM LESSERKNOWN CLONES THE RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS AST'S STOCK ROSE 75 CENTS TO 19 IN NASDAQ STOCK MARKET TRADING 9404270076 940427 BUSINESS BRIEF US HEALTHCARE INC STOCK BUYBACK TO RESUME AS SHARES CONTINUE TO SLIDE US HEALTHCARE INC SAID IT WOULD RESUME PURCHASES UNDER A STOCKBUYBACK PLAN AS ITS STOCK CONTINUED TO SLIDE OVER INVESTOR WORRIES ABOUT MEMBERSHIP AND REVENUE GROWTH IN TRADING ON THE NASDAQ STOCK MARKET US HEALTHCARE SHARES FELL 625 CENTS TO CLOSE AT 369375 A SHARE AFTER FALLING 450 A SHARE ON MONDAY THE MANAGED HEALTHCARE CONCERN IN BLUE BELL PA HAD REPORTED A 42 INCREASE IN FIRSTQUARTER EARNINGS MONDAY BUT SOME ANALYSTS ARE CONCERNED THAT GROWTH MAY BE SLOWING THE COMPANY SAID REPURCHASED SHARES WOULD BE USED FOR GENERAL CORPORATE PURPOSES AND STOCKOPTION PLANS US HEALTHCARE IS AUTHORIZED TO BUY BACK AS MANY AS SEVEN MILLION SHARES UNDER THE PLAN THE COMPANY HAS BOUGHT 232000 SHARES TO DATE 9404270075 940427 BUSINESS BRIEF STARTER CORP SPORTSAPPAREL MAKER POSTS 1STQUARTER EARNINGS DECLINE STARTER CORP REPORTED A 20 DROP IN FIRSTQUARTER EARNINGS DUE TO DISTRIBUTION DELAYS AND HIGHER ADMINISTRATIVE COSTS THE NEW HAVEN CONN SPORTS APPAREL COMPANY ALSO SAID SECONDQUARTER RESULTS MAY BE HURT BY THE TIMING OF FALL PRODUCT SHIPMENTS WHICH COULD BE DELIVERED IN THE SECOND OR THIRD QUARTER FOR THE FIRST QUARTER STARTER REPORTED EARNINGS OF 33 MILLION OR 13 CENTS A SHARE A YEAR EARLIER EARNINGS WERE 41 MILLION OR 21 CENTS A SHARE BUT REFLECTING STARTER'S INITIAL PUBLIC OFFERING IN APRIL 1993 YEAREARLIER EARNINGS WERE 56 MILLION OR 21 CENTS A SHARE SALES OF 72 MILLION WERE FLAT WITH YEAREARLIER RESULTS STARTER HAD SAID FIRSTQUARTER RESULTS WOULD BE AFFECTED BY COSTS AND DELAYS FROM A NEW DISTRIBUTION FACILITY 9404270074 940427 BUSINESS BRIEF MARTIN MARIETTA CORP FIRSTPERIOD PROFIT IS POSTED AGAINST A YEAREARLIER LOSS MARTIN MARIETTA CORP REPORTED FIRSTQUARTER NET INCOME OF 1846 MILLION OR 177 A SHARE AGAINST A LARGE YEARAGO NET LOSS BUT SAID EARNINGS BEFORE UNUSUAL ITEMS IN BOTH PERIODS ROSE 50 THE BETHESDA MD DEFENSE CONTRACTOR HAD A NET LOSS IN THE 1993 QUARTER OF 343 MILLION OR 372 A SHARE BEFORE A CHARGE REFLECTING CHANGES IN ACCOUNTING FOR POSTRETIREMENT BENEFITS IN THE PERIOD THE COMPANY'S EARNINGS WERE 764 MILLION OR 81 CENTS A SHARE NET INCOME IN THE LATEST QUARTER INCLUDED A ONETIME GAIN OF 702 MILLION OR 56 CENTS A SHARE REFLECTING RESULTS OF THE INITIAL PUBLIC OFFERING OF MARTIN MARIETTA MATERIALS INC MARTIN MARIETTA CORP OWNS 81 OF MARTIN MARIETTA MATERIALS SALES FOR THE LATEST QUARTER SURGED 74 TO 203 BILLION FROM 117 BILLION REFLECTING THE ACQUISITION OF GENERAL ELECTRIC CO'S AEROSPACE OPERATIONS MARTIN MARIETTA CORP'S STOCK CLOSED AT 4450 A SHARE DOWN 125 CENTS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE 9404270073 940427 LETTERS TO THE EDITOR SANCTIONS ILLADVISED IN DEALING WITH JAPAN A FEB 15 REPORT CITED COMMENTS BY US CORPORATE EXECUTIVES INCLUDING MYSELF URGING THE CLINTON ADMINISTRATION TO MAINTAIN CAUTION AND CALM FOLLOWING THE FAILURE OF JAPANESE AND US NEGOTIATORS TO REACH AGREEMENT IN TRADE TALKS UNFORTUNATELY THE QUOTE ATTRIBUTED TO ME IS OPEN TO MISINTERPRETATION FOR THE RECORD AND TO BE ABSOLUTELY CLEAR ABOUT IT I AM DECIDEDLY NOT IN FAVOR OF A GUNGHO LET'SSANCTIONTHEHELLOUTOFTHEM' APPROACH TO TRADE RELATIONS WITH JAPAN AS I INDICATED TO YOU I FAVOR A MEASURED RESPONSE SUITED TO THE CIRCUMSTANCES AT THIS POINT IN THE PROCESS I DON'T BELIEVE THAT IMPOSING SANCTIONS IS NECESSARILY THE BEST STRATEGY FOR BRIDGING THE TRADE GAP BETWEEN JAPAN AND THE US AS PRESIDENT OF AN ORGANIZATION THAT HAS SERVED INSURANCE CUSTOMERS IN JAPAN FOR MORE THAN 70 YEARS AND AS CHAIRMAN OF THE INTERNATIONAL INSURANCE COUNCIL I AM DISAPPOINTED BY THE UNSUCCESSFUL OUTCOME OF NEGOTIATIONS TO LIBERALIZE THE JAPANESE INSURANCE MARKET NEVERTHELESS THE INTERNATIONAL INSURANCE INDUSTRY WILL CONTINUE TO PRESS FOR TRANSPARENCY IN THE JAPANESE REGULATORY PROCESS INCREASED MARKET ACCESS AND PARTICIPATION FOR ALL FOREIGN COMPANIES CONSISTENT DEREGULATION AND SUITABLE SAFEGUARDS FOR THE PROGRESS FOREIGN COMPANIES HAVE ALREADY MADE IN BUILDING THEIR JAPANESE MARKETSHARE ULTIMATELY LIBERALIZATION IS GOOD FOR COMPETITION AND COMPETITION IS GOOD FOR COMPANIES AND CONSUMERS ALIKE IN THE US AND JAPAN 9404270072 940427 LETTERS TO THE EDITOR HUBS STARTED AIRLINES' NOSEDIVE FRANK DOOLEY IN HIS MARCH 30 EDITORIALPAGE ARTICLE WHY AIRLINES CRASH PERPETUATES ONE OF THE INDUSTRY'S GREAT MYTHS WHEN HE BLAMES ARCANE WORK RULES AND RESTRICTIVE CONTRACTS FOR MAKING CERTAIN AIRLINES UNCOMPETITIVE HE MISIDENTIFIES THE PRODUCTIVITY AND PROFITABILITY PROBLEM'S CAUSALITY EVIDENCE SHOWS THE PROBLEM IS STRUCTURAL AND WORSENING DUE TO MANAGEMENT DENIAL THE DECADEOLD EVOLUTION TOWARD THE PURE HUB OPERATING STRUCTURE IS THE MOST SIGNIFICANT DRIVER OF COST INEFFICIENCY AND LOW PRODUCTIVITY IT IS DISINGENUOUS TO BLAME AN INDUSTRY'S WOES ON ITS WORKERS WHEN THE APPROPRIATE DEMAND IS THAT MANAGEMENT FIX THE FACTORY SIMILAR TO STEEL AUTO AND OTHER CAPITAL AND LABOR INTENSIVE BUSINESSES FACED BY LOWERCOST COMPETITION THE AIRLINE INDUSTRY MUST REENGINEER ITS STRUCTURE AND PROCESSES TO MAXIMIZE PRODUCTIVITY DELIVERING LOWER PRICES AND THE VALUEFORMONEY A CHANGED MARKETPLACE DEMANDS THE RESULTS OF SUCH AN ORIGINAL INITIATIVE ARE ILLUSTRATED USING MR DOOLEY'S CHOICE OF SOUTHWEST AIRLINES SOUTHWEST'S INPUT COSTS ARE PARITY WITH THE BIG THREE AIRLINES YET IT IS ON AVERAGE MORE THAN 30 MORE PRODUCTIVE IN TERMS OF OUTPUT OFFERED FOR SALE THIS IS A FUNCTION OF SOUTHWEST'S ASSET ALLOCATION STRATEGY PRIMARILY ITS AIRCRAFT SCHEDULING SECONDARILY BY ASSET ALLOCATIONS THAT ARE BYPRODUCTS OF ITS SCHEDULING STRATEGY AND NOT AT ALL BY WAGE RATES AND WORK RULES WHICH ARE IN MANY WAYS SIMILAR TO BIG THREE OPERATORS' THE CORE OF SOUTHWEST'S COMPETITIVE ADVANTAGE IS ITS STRATEGY OF MAXIMIZING ASSET USE STRUCTURALLY FROM WHICH IT DERIVES HIGH PRODUCTIVITY AND THE ABILITY TO OFFER LOW FARES AND VALUE IN 1991 THEN US SECRETARY OF TRANSPORTATION SAMUEL SKINNER COMMISSIONED A STUDY BY PENN STATE UNIVERSITY'S DR PETER CAPELLI OF AIRLINE LABOR ISSUES AND THEIR IMPACT ON INDUSTRY FORTUNES THAT STUDY FOUND LABOR ISSUES HAD NOT NEGATIVELY AFFECTED INDUSTRY FORTUNES THE STUDY DID HOWEVER RAISE THE ISSUE OF DETERIORATING INDUSTRY PRODUCTIVITY AT BIG THREE AIRLINES WHICH WAS OBVIOUS AS LONG AGO AS 1988 AND WHICH IS INHERENT TO AND A DIRECT RESULT OF OVERUSE OF THE HUB SCHEDULING STRATEGY MR DOOLEY'S LABOR CONTRACT CAUSALITY ARGUMENT EVAPORATES IF ONE LOOKS BELOW THE SURFACE REVIEWING IN DETAIL SOUTHWEST'S AIRCRAFT AND CREW SCHEDULING HOW THESE AFFECT DAYTODAY WORKING CONDITIONS AND PRODUCTIVITY THE POINTTOPOINT SCHEDULING FAVORED BY SOUTHWEST RESULTS IN HIGHER EMPLOYEE PRODUCTIVITY THAN HUB AIRLINES PRODUCE DESPITE SHORTER DUTY DAYS FEWER DAYS AWAY FROM HOME PER MONTH AND NO SELFIMPOSED HUBRELATED DELAYS SOUTHWEST IS THE INDUSTRY'S ON TIME LEADER THESE WORKING CONDITIONS COMPARE FAVORABLY WITH THE GREATER NUMBER OF LONGER DUTY DAYS PUNCTUATED BY THE ENDLESS SITTINGAROUND INDUCED DELAYS AND REMOTE LAYOVERS EXPERIENCED BY CREWS FLYING HUB SCHEDULES SOUTHWEST'S COMPARATIVELY FAVORABLE WORKING CONDITIONS YIELD MORE ACTUAL FLYING TIME LESS TIME ON THE JOB AND INDUSTRYPARITY PAY SOUTHWEST'S SCHEDULES MAY BE FLOWN USING WAGE RATES AND WORK RULES IN BIG THREE CARRIER CONTRACTS YIELDING ATTRACTIVE FINANCIAL RESULTS YET HUB CARRIERS' SCHEDULES MAY NOT BE FLOWN WITH SOUTHWEST'S IDEAL CONTRACT WITHOUT SUBSTANTIAL UNFAVORABLE EFFECTS THIS IS PURELY A FUNCTION OF HUB SCHEDULING LOOKING BEYOND THE WORKRULE RHETORIC TO THE ROOT CAUSE IT IS HUBBOUND AIRCRAFT CREWS AND FACILITIES THAT ARE THE BINDING CONSTRAINTS ON PRODUCTIVITY 9404270071 940427 BUSINESS BRIEF POTASH CORP OF SASKATCHEWAN INC PROVINCIAL LEGISLATURE SEEKS END TO SHARE OWNERSHIP LAW THE SASKATCHEWAN GOVERNMENT INTRODUCED LEGISLATION IN THE PROVINCIAL LEGISLATURE TO ELIMINATE RESTRICTIONS ON OWNERSHIP OF THE SHARES OF POTASH CORPORATION OF SASKATCHEWAN INC FOREIGN OWNERSHIP IS LIMITED TO 45 OF THE FERTILIZER COMPANY'S OUTSTANDING SHARES NO PERSON OR GROUP IS ALLOWED TO OWN MORE THAN 5 OF THE SHARES POTASH CORP SASKATOON SASKATCHEWAN WELCOMED THE BILL WHICH IS EXPECTED TO BE APPROVED SOON BY THE LEGISLATURE A COMPANY SPOKESWOMAN SAID REMOVAL OF THE RESTRICTIONS WILL MAKE THE COMPANY'S SHARES MORE LIQUID SHE SAID FOREIGN OWNERSHIP WAS NEARING THE LIMIT US INVESTORS HAVE BEEN SUBSTANTIAL BUYERS OF POTASH CORP SHARES POTASH A FORM OF POTASSIUM IS A FERTILIZER 9404270069 940427 BUSINESS BRIEF MEDTRONIC INC COMPANY TO FUND EFFORT BY NEUREX TO DEVELOP DRUG MEDTRONIC INC AGREED TO HELP FUND NEUREX CORP'S EFFORT TO DEVELOP A NEW NONHABITFORMING DRUG FOR TREATING CHRONIC PAIN THE BIG MEDICALPRODUCTS CONCERN IN MINNEAPOLIS SAID IT WILL PAY NEUREX IN MENLO PARK CALIF UP TO 16 MILLION IN EQUITY AND MILESTONE PAYMENTS TO DEVELOP SNX111 A NATURALLY OCCURRING CHEMICAL THAT REGULATES PAIN BY BLOCKING THE FLOW OF CALCIUM INTO NERVE CELLS SUCH A DRUG COULD PROVIDE DOCTORS WITH ADDITIONAL OPTIONS TO TREATING CHRONIC PAIN SUCH AS THOSE RESULTING FROM DIFFERENT TYPES OF CANCER UNLIKE MORPHINE A WIDELYUSED PAINKILLER SNX111 IS NOT AN OPIATE AND ISN'T HABITFORMING CLINICAL TRIALS OF THE DRUG ARE EXPECTED TO BEGIN LATER THIS YEAR IF NEUREX'S RESEARCH PROVES SUCCESSFUL MEDTRONIC WOULD RECEIVE WORLDWIDE RIGHTS FOR USE OF SNX111 ADMINISTERED VIA THE SPINE NEUREX A DRUG DEVELOPER WOULD RETAIN THE BROADER RIGHTS 9404270068 940427 BUSINESS BRIEF AIRBORNE FREIGHT CORP FIRSTQUARTER NET FELL 6 REFLECTING YEAREARLIER GAIN AIRBORNE FREIGHT CORP SAID FIRSTQUARTER NET INCOME FELL 6 REFLECTING A YEAREARLIER GAIN FROM AN ACCOUNTING CHANGE REVENUE ROSE 17 TO 4666 MILLION FROM 3988 MILLION DOMESTIC REVENUE CLIMBED 15 TO 3969 MILLION AND INTERNATIONAL SALES INCREASED 32 TO 697 MILLION THE RESULTS WHICH EXCEEDED ANALYSTS' EXPECTATIONS HELPED PUSH THE COMPANY'S STOCK UP 150 TO 34375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9404270067 940427 BUSINESS BRIEF UNUM CORP DISABILITY INSURER POSTS DROP OF 21 IN FIRSTQUARTER NET UNUM CORP COMMON SHARES TUMBLED 78 AFTER THE COMPANY POSTED FIRSTQUARTER EARNINGS THAT WERE BELOW ANALYSTS' EXPECTATIONS BREAKING A STRING OF POSITIVE SURPRISES FOR THE DISABILITY INSURER UNUM BASED IN PORTLAND MAINE REPORTED NET INCOME OF 771 MILLION OR 102 A SHARE DOWN 21 FROM 639 MILLION OR 81 CENTS A SHARE A YEAR EARLIER THE 1993 FIGURES REFLECT ONETIME CHARGES OF 216 MILLION REVENUE FELL 67 TO 8774 MILLION OPERATING PROFIT OF 92 CENTS A SHARE WAS BELOW ANALYSTS' ESTIMATES OF ABOUT 101 A SHARE UNUM HAD OPERATING PROFIT OF 91 CENTS A SHARE A YEAR EARLIER UNUM SAID ITS RESULTS WERE HURT BY LOW INTEREST RATES AND AN INFLUX OF LARGE CLAIMS LATE IN THE QUARTER WHICH IT COULDN'T FULLY INVESTIGATE BEFORE SETTING ASIDE RESERVES UNUM SHARES FELL 425 TO 5025 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY 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 9404270066 940427 THE TRAILING EDGE SOME GERMANS FEAR THEY'RE FALLING BEHIND IN HIGHTECH FIELDS FIRMS BLAME OVERREGULATION OFFICIALS BLAME TIMIDITY THE PUBLIC SHUNS RISK FLOPS IN GENETIC ENGINEERING BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN IMAGINE THIS EARLY IN THE NEXT CENTURY GERMANY WILL BE LIVING OFF WORLD BANK CREDITS AND SUBMITTING ITS BUDGETS FOR INTERNATIONAL MONETARY FUND APPROVAL ITS PRODUCTS ONCE REGARDED AS HIGHTECH MARVELS WILL LOOK QUAINT AT INTERNATIONAL EXHIBITIONS AND ELICIT CONDESCENDING SNIGGERS THAT DOESN'T SOUND LIKE THE INDUSTRIAL COLOSSUS THAT PRODUCED INNOVATIONS RANGING FROM THE PRINTING PRESS TO THE DIESEL ENGINE BUT IT IS THE PROVOCATIVE SCENARIO DRAWN BY ONE OF THE COUNTRY'S LEADING POLITICAL FIGURES LOTHAR SPAETH AND THE CHAIRMAN OF MCKINSEY & CO GERMANY HERBERT A HENZLER THEIR BESTSELLING BOOK CAN THE GERMANS STILL BE SAVED ARGUES THAT IN GERMANY'S GREATEST STRUCTURAL CRISIS IN THE POSTWAR PERIOD THE COUNTRY IS ABOUT TO LOSE ITS PLACE AMONG THE WORLD'S LEADING ECONOMIES LARGELY BECAUSE IT IS MISSING THE BOAT ON CUTTINGEDGE TECHNOLOGIES MESSRS SPAETH AND HENZLER'S JEREMIAD IS ONLY ONE OF MANY SIGNS OF GERMANY'S POWERFUL CASE OF TECHNOANGST COMING ON TOP OF MOUNTING UNEMPLOYMENT AND THE SHARPEST RECESSION IN DECADES WIDESPREAD ANXIETY ABOUT THE COUNTRY'S STATUS AS A HIGHTECH PRODUCER IS SETTING OFF DEBATE ABOUT THE GERMAN MODEL OF ECONOMIC ORGANIZATION AND A ROUND OF FINGERPOINTING CORPORATE EXECUTIVES BEMOAN INFLEXIBLE REGULATIONS THAT THEY SAY HINDER NEWPRODUCT DEVELOPMENT GOVERNMENT OFFICIALS CRITICIZE INDUSTRY FOR WHAT THEY SAY IS TIMIDITY SOME SUCH AS ECONOMICS MINISTER GUENTER REXRODT CALL FOR AN INNOVATIONSKRISE AN INNOVATION OFFENSIVE THAT NOTION HAS BEEN ADOPTED BY CHANCELLOR HELMUT KOHL AS A MAJOR THEME OF HIS UPHILL BID FOR REELECTION HE IS CREATING A NATIONAL TECHNOLOGY COUNCIL TO CALL ATTENTION TO GERMAN SHORTCOMINGS AND TO REVISE POLICY LAST MONTH HE PUSHED THROUGH PLANS TO BUILD A 52 BILLION MAGNETICALLY LEVITATED TRAIN BETWEEN BERLIN AND HAMBURG OVER THE OBJECTIONS OF A GOVERNMENTCONVENED PANEL OF EXPERTS AND HE LOADS HIS SPEECHES WITH ILLUSTRATIONS OF GERMAN SLIPPAGE IN MICROELECTRONICS SAYS THE CHANCELLOR A MAN ADDICTED TO STATISTICS THE NUMBER OF GERMAN PATENTS BETWEEN 1987 AND 1992 SHRANK FROM 289 TO 181 WHILE THE JAPANESE REGISTRATIONS HAVE RISEN FROM 17408 TO 23082 THE USA WITH A DOUBLING OF ITS PATENTS FROM 848 TO 1671 IS SUBSTANTIALLY BETTER HERE THAN GERMAN ENTERPRISES THOUGH ACKNOWLEDGING THAT PATENT PRACTICES DIFFER IN VARIOUS COUNTRIES HE WARNS WE SEE SIMILAR LAGS IN LARGE COMPUTERS COMMUNICATIONS ELECTRONICS OFFICE TECHNOLOGY AND LASERS OTHERS SUPPLEMENT THAT LIST IF YOU LOOK AT THE CHIP INDUSTRY IT'S A DISASTER COMPLAINS HORST ALBACH DIRECTOR OF THE WISSENSCHAFTSZENTRUM A SOCIALSCIENCE THINK TANK IN BERLIN AND THE COMPUTER INDUSTRY HAS BEEN FOR MANY YEARS ENERGY TECHNOLOGY AS SUCH IS A DISASTER GENETIC ENGINEERING MAY BE WHERE GERMANY IS LAGGING THE MOST WHOLE LAB FLOORS ARE EMPTY AT GERMAN CHEMICAL AND PHARMACEUTICAL GIANTS MR ALBACH SAYS WHAT WENT WRONG PEOPLE ARE NO LONGER PREPARED TO BEAR RISKS IN GERMANY SAYS RESEARCH MINISTER PAUL KRUEGER THEY DIDN'T HAVE TO FOR A LONG TIME BECAUSE THERE HAS BEEN REALLY GREAT PROSPERITY WE'RE TALKING ABOUT A SOCIETY THAT IS SATED MR SPAETH A ONETIME KOHL RIVAL RENOWNED FOR STIMULATING A BOOM AS PREMIER OF THE SOUTHWESTERN STATE OF BADENWUERTTEMBERG BELIEVES THAT THE GERMANS HAVE BECOME COMPLACENT WE'VE BECOME THE BEST SPECTATOR COUNTRY ON EARTH SOME GOVERNMENT OFFICIALS CITE A RECENT ANALYSIS SHOWING THAT 40 OF GERMAN INDUSTRIAL COMPANIES HAVEN'T SIGNIFICANTLY IMPROVED THEIR PRODUCTS FOR THREE YEARS MR KOHL FREQUENTLY REMINDS GERMANS THAT THEY HAVE BEEN SLOW TO TURN FIRSTRATE RESEARCH INTO MARKETABLE GOODS ONE EXAMPLE IS THE FAX MACHINE INVENTED IN GERMANY BY A SIEMENS AG LAB BUT DEVELOPED INTO A MARKETABLE PRODUCT IN JAPAN GERMAN BANKS FAMOUS FOR CONSERVATIVE LENDING AND HIGHLY INFLUENTIAL WITH SEATS ON MANY CORPORATE BOARDS ARE CRITICIZED FOR PREFERRING REFINEMENTS IN TECHNOLOGIES THEY KNOW TO NEW TECHNOLOGIES THEY DON'T KNOW AND CRITICS ALSO CITE A TAX SYSTEM THAT IS UNUSUAL IN THE WEST IN NOT ENCOURAGING INNOVATION BUT WHAT SEEMS TO UPSET POLICY MAKERS AND INDUSTRIALISTS MOST IS RISKAVERSION AMONG THE PUBLIC AND IN THE GOVERNMENT BUREAUCRACY IN THE MIDDLE OF HOECHST AG'S 988ACRE HEADQUARTERS COMPLEX IN FRANKFURT A NONDESCRIPT BRICK BUILDING SYMBOLIZES THIS ATTITUDE AND THE STUNTING OF GENETIC ENGINEERING IN GERMANY IN HIS OFFICE NEARBY UTZHELLMUTH FELCHT HOECHST'S MANAGEMENT BOARD DIRECTOR FOR RESEARCH REFERS SCORNFULLY TO THE PLANT AS A 90 MILLION INVESTMENT RUIN WITH UPGRADING THAT BEGAN IN 1986 THE PLANT WHICH WAS DESIGNED TO MAKE GENETICALLY ENGINEERED HUMAN INSULIN COULD HAVE GONE INTO PRODUCTION IN 1988 BUT THE PROJECT HAS BEEN STYMIED ALTHOUGH GERMANY'S GENETICENGINEERING REGULATIONS SEEM ON PAPER ROUGHLY COMPARABLE TO AMERICA'S GERMAN OFFICIALS HAVEN'T BEEN ABLE OR WILLING TO GET THE BUREAUCRATIC TRAINS RUNNING ON TIME EVEN CONVENTIONAL CHEMICAL PLANTS FACE INTERMINABLE DELAYS ONE STUDY FOUND THAT OBTAINING PERMITS FOR ONE KIND OF PLANT TOOK SIX YEARS IN GERMANY BUT ONLY 27 MONTHS IN JAPAN HOECHST HAS BEEN FRUSTRATED BY AN INTERMINABLE CYCLE OF PUBLIC HEARINGS PROJECT REVISIONS AND PERMIT REAPPLICATIONS TRIAL RUNS BEGAN AT THE PLANT ONLY LAST YEAR THE PERMIT PROCESS STILL ISN'T OVER A FINAL LICENSE ALLOWING COMMERCIAL PRODUCTION IS EXPECTED IN THE MIDDLE OF THIS YEAR WITH AUTHORITIES ALLOWING THE INSULIN ON THE MARKET IN 1996 AT THE EARLIEST WE HAD TO REPERMIT ONCE DR FELCHT LAMENTS BECAUSE WE WERE CHANGING ONE STEP CHANGING A SOLVENT FROM AN ALCOHOL TO A KETONE THIS IS SOMETHING NO CHEMIST IN THE WORLD CAN UNDERSTAND HE IS EXASPERATED NOT ONLY BECAUSE COMMERCIAL PRODUCTION OF HUMAN INSULIN APPEARED ON THE US MARKET IN 1984 BUT ALSO BECAUSE OTHER COMPANIES GOT A HUGE JUMP ON HOECHST IN ITS HOME MARKET NOTING THAT SIMILAR PLANTS HAVE BEEN BUILT BY HOECHST'S TWO BIGGEST COMPETITORS NOVO NORDISK A/S'S IS IN DENMARK AND ELI LILLY & CO'S IS IN THE US HE COMPLAINS IN A RISING VOICE GENETICALLY ENGINEERED HUMAN INSULIN IS PERMITTED TO BE SOLD HERE SO ELI LILLY SELLS HERE AND WE CAN'T EVEN PRODUCE IT NOW DOES THAT MAKE SENSE THE EXPERIENCE HAS COLORED OTHER HOECHST GENETICENGINEERING PROJECTS SHORTLY AFTER APPLYING FOR PERMITS IN 1991 TO PRODUCE HIRUDIN AN ANTISTROKE DRUG IN GERMANY HOECHST REPEATED THE PROCESS IN FRANCE THROUGH ITS ROUSSELUCLAF SUBSIDIARY IT TOOK 2 1/2 YEARS TO GET CLEARANCE IN GERMANY AND SIX WEEKS IN FRANCE AND HOECHST IS PREPARING TO MAKE THE DRUG IN FRANCE TO DR FELCHT THIS PROVES THAT THE BARRIERS TO GENETIC ENGINEERING AREN'T EUROPEAN BUT GERMAN YOU DON'T HAVE TO GO TO AMERICA OR JAPAN TO SUCCEED HE SAYS YOU CAN JUST GO OVER THE BORDER THE INSULIN STORY HAS HAD A CHILLING EFFECT ON GERMANY'S ENTIRE PHARMACEUTICAL INDUSTRY THE DAMAGE IS IN MANY CASES IRREVERSIBLE SAYS WOLFDIETER SCHLEUNING WHO HEADS THE MOLECULARBIOLOGY SECTION AT SCHERING AG A BERLINBASED PHARMACEUTICAL COMPANY FOR EXAMPLE ALL THE RESEARCH FOR A PROMISING GENETICALLY ENGINEERED DRUG THAT DISSOLVES BLOOD CLOTS WAS DONE DOWN THE HALL FROM DR SCHLEUNING'S OFFICE BUT WITH CLINICAL TRIALS NOW UNDER WAY SCHERING WANTS TO AVOID BUREAUCRATIC LOGJAMS BY PRODUCING THE DRUG WHOSE PRIMARY INGREDIENT WAS ORIGINALLY FOUND IN THE SALIVA OF VAMPIRE BATS IN THE US SIMILARLY BAYER AG NEVER TRIED TO PRODUCE IN GERMANY ITS FACTOR VIII A MEDICATION FOR HEMOPHILIACS ALL THE MAJOR GERMAN PLAYERS HAVE BEEN INVESTING IN AMERICAN RESEARCH CENTERS AND/OR STARTUP FIRMS BASF AG OFFICIALLY OPENED A RESEARCH LAB IN WORCESTER MASS EARLIER THIS MONTH AND MANY ARE ACTIVE IN JAPAN AS WELL THE SIZE OF THE AMERICAN MARKET AND THE DESIRE TO BE NEAR RESEARCH HOTBEDS SUCH AS BERKELEY CALIF AND BOSTON NO DOUBT ACCOUNT IN PART FOR THE RUSH TO THE US BUT GERMAN POLITICIANS AND ECONOMISTS ARE WORRIED AS GERMAN COMPANIES SPEND AN ESTIMATED 75 OF THEIR GENETICENGINEERING MONEY ABROAD IN A MARKET EXPECTED TO BE WORTH NEARLY 100 BILLION BY THE YEAR 2000 JUST 21 GENETICALLY ENGINEERED DRUGS WERE IN DEVELOPMENT IN GERMANY IN 1992 COMPARED WITH 268 IN THE US EXPLAINING WHY GERMANY THOUGH NOT ITS MULTINATIONAL COMPANIES IS LOSING OUT SCHERING'S DR SCHLEUNING CITES A MOUTHFUL OF A WORD THAT HAS BECOME UBIQUITOUS IN BUSINESS CIRCLES TECHNOLOGIEFEINDLICHKLEIT ROUGHLY HOSTILITY TO TECHNOLOGY PUBLICOPINION ANALYSTS CONFIRM THAT SURVEYS FIND GERMANS LESS ACCEPTING OF NEW TECHNOLOGIES THAN THE JAPANESE WHO TEND TO BE THE MOST OPEN TO INNOVATION AMERICANS AND MOST OTHER EUROPEANS TODAY YOU CAN EXPRESS THE FEELING IN PUBLIC I DON'T LIKE TECHNOLOGY' WITHOUT ANY REASONING SAYS JOCHEN HANSEN OF THE ALLENSBACH INSTITUTE IN ALLENSBACH BADENWUERTTEMBERG ON TELEVISION YOU CAN ALWAYS EXPECT APPLAUSE THAT HOSTILITY MAY PREVAIL FOR MANY YEARS BECAUSE IT IS BEING FUELED PARTLY BY LINGERING REVULSION OVER THE NAZI EUGENICS AND EUTHANASIA PROGRAMS WHEN A COUNTRY EXPERIMENTS ON HUMAN BEINGS SO CYNICALLY AND SO UNQUESTIONINGLY A TOP GOVERNMENT OFFICIAL SAYS ITS PEOPLE DISTRUST THE WHOLE NOTION OF TAMPERING WITH GENETIC MATERIAL HE ADMITS I'M NOT SO SORRY THERE IS A CAUTION REINFORCING THAT CAUTION MR HANSEN SAYS IS THE SUCCESS OF ENVIRONMENTALISM WHICH IN THE FORM OF A POLITICAL PARTY THE GREENS HAS MADE DEEPER POLITICAL INROADS IN GERMANY THAN ELSEWHERE IN THE WEST INDUSTRIAL SOCIETY HAS BEEN PUT MORE INTO QUESTION AND THIS HAS BEEN LINKED TO A CRITIQUE OF CAPITALISM HE SAYS MANAGERS IN THE CHEMICAL AND PHARMACEUTICAL INDUSTRIES BELIEVE THAT PUBLIC DISCOMFORT WITH GENETIC ENGINEERING IS SO DEEP IN GERMANY THAT LITTLE WILL BE CHANGED BY A FEDERAL LAW PUT INTO EFFECT JAN 1 THAT IS DESIGNED TO STREAMLINE REGULATIONS ALTHOUGH THE LAW IS FEDERAL ACTUAL REGULATION OCCURS AT THE STATE LEVEL SOME ANALYSTS THOUGH BLAME THE INDUSTRY FOR ITS PROBLEMS FRIEDER MAYERKRAHMER DIRECTOR OF FRAUNHOFER INSTITUTE FOR SYSTEMS TECHNOLOGY AND RESEARCH IN KARLSRUHE SOUTH OF FRANKFURT IS A PROFESSED SKEPTIC ABOUT AN INNOVATION OFFENSIVE HE BELIEVES GERMANY WILL PROSPER IN NEW TECHNOLOGIES LINKED TO ITS TRADITIONAL STRENGTHS IN CHEMICALS AND ENGINEERING IN AREAS SUCH AS GENETIC ENGINEERING HE CONTENDS THAT COMPANIES HAVE FAILED TO EDUCATE PEOPLE THEY HAVE TO BE MUCH MORE AGGRESSIVE ABOUT STARTING THE DISCUSSION HE SAYS FOR DR SCHLEUNING WHO HAS WORKED AS A RESEARCHER AT NEW YORK'S ROCKEFELLER UNIVERSITY THE DECLINE IN GERMANY'S POPULAR ACCEPTANCE OF GENETIC ENGINEERING IN RECENT YEARS IS PALPABLE HE COMMENTS IF YOU SAY IN AMERICA YOU'RE IN GENETIC ENGINEERING IT'S GLAMOROUS PEOPLE ADMIRE YOU SAY IT IN GERMANY AND PEOPLE SUSPECT YOU YOU AVOID SAYING IT SO EVEN WHEN THE GOAL IS SAVING LIVES OR IMPROVING HEALTH THE OPPOSITION REMAINS HARVARD UNIVERSITY'S SUCCESSFUL EFFORT TO PATENT A MOUSE DESIGNED FOR CANCER RESEARCH WAS EXTREMELY CONTROVERSIAL AT MUNICH'S EUROPEAN PATENT OFFICE ELICITING STREET PROTESTS AND A TORRENT OF MAIL STILL CONTESTING THE 1992 PATENT ARE 17 GROUPS MOSTLY GERMAN ALSO STIRRING CONTROVERSY ARE GERMANY'S FEW FARMLAND TESTS OF GENETICALLY ALTERED PLANTS AND FOODSTUFFS SOME PRACTICALLY CAUSED PITCHED BATTLES WITH RESEARCHERS FORCED TO PUT UP BARRICADES OR CAMP OUT IN FIELDS TO PREVENT DEMONSTRATORS FROM RIPPING UP EXPERIMENTAL BEDS OF POTATOES BEETS AND PETUNIAS THE PERSISTENCE OF SUCH OPPOSITION WORRIES MR SPAETH WHO NOW IS CHAIRMAN OF JENOPTIK GMBH THE SUCCESSOR TO THE FAMOUS EASTERN GERMAN FIRM VEB CARL ZEISS JENA IN NEARLY A DOZEN SPEECHES A MONTH MR SPAETH IS TRYING TO CONVINCE GERMANS THAT A LITTLE RISK CAN BE BENEFICIAL AND THAT THEY CANNOT RELY ONLY ON THE TRADITIONAL POWERHOUSE INDUSTRIES OF ENGINEERING AUTOMOBILES AND CHEMICALS ALL BORN IN THE 19TH CENTURY WE'RE THE COUNTRY THAT HAS TAKEN THE TECHNOLOGIES OF YESTERDAY THE FARTHEST HE SAYS NOW THOUGH WE NEED FULLY NEW PRODUCTS HOECHST'S DR FELCHT AGREES AND HE IS PREPARED TO GIVE GENETICENGINEERING PRODUCTION ONE MORE SHOT IN GERMANY BUT THIS TIME I WILL NOT WAIT TWO YEARS FOR THE PILOT PLANT PERMIT HE DECLARES IF THE PERMIT IS NOT HERE IN THE REQUIRED TWO OR THREE MONTHS THEN I'LL MAKE IT PUBLIC AND THEN WE'LL GO AWAY 9404270064 940427 BUSINESS BRIEF TRIZEC CORP CREDITORS AGREE TO DELAY ACTION ON DEBT REPAYMENT TRIZEC CORP'S SENIOR DEBENTURE HOLDERS AGREED TEMPORARILY NOT TO DEMAND REPAYMENT OF THEIR DEBT OR TO SEIZE THE COMPANY'S ASSETS UNTIL THEY'VE REVIEWED A NEW PROPOSAL FOR RESTRUCTURING THE TROUBLED REAL ESTATE CONCERN'S DEBT UNDER TERMS OF THE AGREEMENT REACHED BETWEEN LAWYERS FOR THE TWO SIDES AT A COURT HEARING IN CALGARY ALBERTA TRIZEC SAID IT WILL PRESENT THE CREDITORS WHO ARE OWED 12 BILLION CANADIAN DOLLARS US8734 MILLION WITH DETAILS OF THE RESTRUCTURING PROPOSAL BY THE END OF THIS WEEK AS PREVIOUSLY REPORTED THE PROPOSAL INCLUDES A CASH INVESTMENT OF C600 MILLION BY HORSHAM CORP A TORONTO CONGLOMERATE IN EXCHANGE FOR 40 OF TRIZEC BASED IN CALGARY ALBERTA TRIZEC WHICH IS SEEKING TO RESTRUCTURE A TOTAL OF C19 BILLION OF DEBT HAD PREVIOUSLY OBTAINED A COURT ORDER BLOCKING THE SENIOR CREDITORS FROM DEMANDING REPAYMENT THAT ORDER EXPIRED YESTERDAY 9404270063 940427 BUSINESS BRIEF PROCTER & GAMBLE CO SHAREHOLDER LAWSUIT IS FILED AGAINST SEVERAL EXECUTIVES A SHAREHOLDER SUIT HAS BEEN BROUGHT AGAINST SEVERAL PROCTER & GAMBLE CO EXECUTIVES CLAIMING THEY VIOLATED THEIR FIDUCIARY DUTIES BY AUTHORIZING RISKY INTERESTRATE SWAPS P&G ALSO IS NAMED IN THE SUIT WHICH WAS FILED IN HAMILTON COUNTY OHIO COMMON PLEAS COURT BY SHAREHOLDER ELAINE DRAGE THE SOCALLED SHAREHOLDER DERIVATIVE SUIT IS TECHNICALLY ON THE COMPANY'S BEHALF AND ANY SETTLEMENT OR JUDGMENT WOULD GO INTO THE CORPORATE TREASURY AND BENEFIT SHAREHOLDERS INDIRECTLY A P&G SPOKESWOMAN SAID THE COMPANY HADN'T SEEN THE SUIT AND HAD NO COMMENT EARLIER THIS MONTH P&G WHICH IS BASED IN CINCINNATI SAID IT WILL TAKE A 157 MILLION PRETAX CHARGE IN ITS FISCAL THIRD QUARTER TO CLOSE OUT TWO LEVERAGED SWAP TRANSACTIONS THAT WERE HIT BY RISING INTEREST RATES IN THE US AND GERMANY 9404270062 940427 TECHNOLOGY & HEALTH GUPTA STOCK PLUNGES AFTER PROFIT REPORT TRAILS EXPECTATIONS MENLO PARK CALIF INVESTORS PUMMELED GUPTA CORP DRIVING DOWN THE SOFTWARE MANUFACTURER'S STOCK BY 42 AFTER THE COMPANY REPORTED LOWERTHANANTICIPATED FIRSTQUARTER EARNINGS IN NASDAQ STOCK MARKET TRADING YESTERDAY GUPTA CLOSED AT 1350 A SHARE DOWN 975 ANALYSTS ATTRIBUTED THE COMPANY'S STOCK PLUNGE TO ITS MONDAY POSTING OF A FIRSTQUARTER PROFIT OF 501000 OR FOUR CENTS A SHARE ON REVENUE OF 172 MILLION COMPARED WITH YEAREARLIER EARNINGS OF 654000 OR FIVE CENTS A SHARE ON 11 MILLION IN REVENUE ANALYSTS HAD EXPECTED GUPTA TO REPORT A FIRSTQUARTER GAIN OF NINE CENTS A SHARE IN THIS HIGHSPEED GROWTH WORLD THERE'S NO COMPASSION ON WALL STREET FOR HIGH PRICETOEARNINGS LAGGARDS SAID DAVID READERMAN A LEHMAN BROTHERS ANALYST IN SAN FRANCISCO BEFORE GUPTA'S NOSEDIVE THE COMPANY'S STOCK WAS TRADING AT A PRICE/EARNINGS MULTIPLE OF 31 MR READERMAN SAID GUPTA'S EARNINGS ANNOUNCEMENT MONDAY NOTED THE MENLO PARK COMPANY TRADITIONALLY GAINED MOMENTUM THROUGH THE YEAR AND SAID IT WAS ENTHUSIASTIC ABOUT 1994 BUT ANALYSTS WERE NERVOUS OVER GUPTA'S DISCLOSURE THAT IT WAS HOLDING OFF BOOKING A 1 MILLION CORPORATE ORDER UNTIL CERTAIN CONTRACTUAL TERMS ARE FURTHER CLARIFIED WILLIAM H SHATTUCK AN ANALYST WITH MONTGOMERY SECURITIES IN SAN FRANCISCO SAID GUPTA'S MAIN COMPETITOR POWERSOFT CORP BLEW THE DOORS OFF ITS FIRST QUARTER REPORTING EARNINGS LAST WEEK OF 24 CENTS A SHARE WHICH EXCEEDED ANALYSTS' EXPECTATIONS POWERSOFT IS PROVIDING GUPTA WITH A REAL CHALLENGE TO GROW IN THE US MARKET MR SHATTUCK SAID YOU WOULD HAVE HOPED GUPTA COULD HAVE FOUND THE WHEREWITHAL SOMEWHERE ELSE TO COME UP WITH A BETTER SHOWING 9404270061 940427 INTERNATIONAL BRIEF TARMAC PLC PRETAX 1993 LOSS NARROWED ON STRENGTH OF HOUSING UNIT UK CONSTRUCTION GROUP TARMAC PLC SAID YESTERDAY THAT ITS 1993 PRETAX LOSS NARROWED TO 431 MILLION 642 MILLION FROM 3503 MILLION IN 1992 ON THE STRENGTH OF ITS HOUSING DIVISION EXCLUDING EXCEPTIONAL ITEMS AND COUNTING CONTINUING BUSINESSES ALONE TARMAC'S PRETAX PROFIT ROSE TO 557 MILLION IN 1993 FROM 136 MILLION IN 1992 SALES FELL 9 TO 267 BILLION FROM 293 BILLION TARMAC CHAIRMAN SIR JOHN BANHAM SAID NOW THAT OUR FINANCIAL HEALTH IS RESTORED WE ARE EMBARKING UPON LONGTERM STRATEGIES TO DEVELOP OUR ONGOING BUSINESSES TARMAC'S HOUSING DIVISION'S PROFIT ROSE 43 TO 552 MILLION DESPITE A 68 DROP IN SALES TO 6062 MILLION TARMAC CALLED THE HOUSING DIVISION THE OUTSTANDING PERFORMER RAISING ITS CONTRIBUTION ON A REDUCED UNIT OUTPUT 9404270060 940427 INTERNATIONAL BELL ATLANTIC AND ITALY SET TO TEST MARKET FOR NEW VIDEO SERVICE ROME BELL ATLANTIC CORP OF THE US AND ITALY'S STATE TELEPHONE COMPANY SCHEDULED TESTMARKETING OF A VIDEOONDEMAND SERVICE THEY PLAN IN ITALY AND AGREED TO TRY SELLING RELATED SERVICES TOGETHER IN OTHER COUNTRIES THE PLANS ANNOUNCED IN ROME YESTERDAY HERALD THE SECOND MAJOR TEST OF THE EXPERIMENTAL ENTERTAINMENT SERVICE IN EUROPE IN THE UK BRITISH TELECOMMUNICATIONS PLC CURRENTLY IS CONDUCTING TESTS LIKE SIMILAR SYSTEMS BEING TRIED OUT IN THE US THE EUROPEAN SERVICES WOULD MAINTAIN COMPUTER LIBRARIES OF MOVIES AND VIDEOS CONNECTED TO CONVENTIONAL COPPER TELEPHONE LINES PAYING SUBSCRIBERS COULD DIAL UP THE FILMS USING A SPECIAL DEVICE TO CONNECT THEIR STANDARD TELEVISION SETS TO THE TELEPHONE LINE SKEPTICISM ABOUT THE COMMERCIAL PROSPECTS OF SUCH INTERACTIVE MULTIMEDIA SERVICES HAS BEEN RISING WORLDWIDE FOLLOWING THE COLLAPSE LAST MONTH OF BELL ATLANTIC'S BOLDEST MULTIMEDIA FORAY ITS PLAN TO BUY THE BIGGEST US CABLETELEVISION COMPANY TELECOMMUNICATIONS INC BUT THE ITALIAN ANNOUNCEMENT SUGGESTS THAT SLOWANDSTEADY MARKET TRIALS OF THE BESTKNOWN MULTIMEDIA SERVICE VIDEOONDEMAND WILL CONTINUE IN EUROPE PHILADELPHIABASED BELL ATLANTIC AND ITS MAIN VIDEOSOFTWARE SUPPLIER ORACLE CORP REDWOOD SHORES CALIF HAVE BEEN AMONG THE MOSTACTIVE PROPONENTS OF MULTIMEDIA BELL ATLANTIC'S ITALIAN AGREEMENTS ARE WITH SOCIETA ITALIANA PER L'ESERCIZIO DELLE TELECOMUNICAZIONE OR SIP AND ITS PARENT COMPANY STATECONTROLLED SOCIETA FINANZIARIA TELEFONICA PER AZIONI KNOWN AS STET 9404270058 940427 BUSINESS BRIEF HSBC HOLDINGS PLC MARINE MIDLAND BANK POSTS 55 GAIN IN 1STQUARTER NET MARINE MIDLAND BANK SAID FIRSTQUARTER NET INCOME ROSE 55 DUE TO IMPROVED NET INTEREST INCOME NET INCOME ROSE TO 526 MILLION FROM THE YEAR EARLIER 34 MILLION THE REGIONAL BANKING COMPANY HAD NO PROVISION FOR LOAN LOSSES IN EITHER QUARTER MARINE MIDLAND WITH 175 BILLION IN ASSETS IS A REGIONAL BANKING COMPANY BASED IN BUFFALO NY AND AN INDIRECTLY HELD WHOLLY OWNED SUBSIDIARY OF HSBC HOLDINGS PLC OF LONDON THE COMPANY SAID NET INTEREST INCOME ROSE TO 1864 MILLION FROM 160 MILLION WHILE OTHER OPERATING INCOME TOTALED 681 MILLION UP FROM 179 MILLION TRADING REVENUE SHOWED A 5 MILLION LOSS COMPARED WITH A YEAREARLIER 13 MILLION GAIN MORTGAGE SERVICING FEES AND INCOME TOTALED 46 MILLION COMPARED WITH A YEAR EARLIER LOSS OF 54 MILLION WHEN THE COMPANY TOOK A SIGNIFICANT WRITEDOWN IN MORTGAGE SERVICING RIGHTS 9404270056 940427 INTERNATIONAL BRIEF HOECHST AG PRETAX PROFIT ADVANCES 16 ON 10 INCREASE IN REVENUE GERMAN CHEMICAL CONCERN HOECHST AG SAID GROUP PRETAX PROFIT FOR THE FIRST THREE MONTHS OF 1994 GREW 16 TO 506 MILLION MARKS 3009 MILLION FROM 436 MILLION MARKS A YEAR EARLIER NOTING DEMAND IN THE US WAS ESPECIALLY STRONG THE GROUP ALSO SAID SALES IN THE FIRST THREE MONTHS ROSE 10 TO 12 BILLION MARKS FROM 109 BILLION HOECHST SAID A THIRD OF ITS SALES GROWTH DURING THE PERIOD CAME THROUGH THE FIRSTTIME CONSOLIDATION OF HOECHST SCHERING AGREVO THE COMPANY REPORTED THAT DOMESTIC SALES GREW 06 TO 271 BILLION MARKS IT NOTED THAT PRICE PRESSURE IN GERMANY KEPT SALES GROWTH FROM KEEPING PACE WITH UNIT SALES GAINS HOECHST GAVE NO SPECIFIC PREDICTION BUT SAID IT EXPECTS FULLYEAR RESULTS TO BE BETTER THAN IN 1993 9404270055 940427 INTERNATIONAL BRIEF HEINEKEN NV BREWER SAYS IT WON'T ACCEPT DEMANDS OF STRIKING UNION DUTCH BREWER GROUP HEINEKEN NV REITERATED THAT IT WON'T BOW TO DEMANDS FROM A STRIKING UNION FOR SALARY INCREASES HIGHER THAN THOSE AGREED TO BY THE COMPANY'S OTHER UNIONS AND NEW DEMANDS FOR A FOURDAY WORKWEEK AMSTERDAMBASED HEINEKEN SAID THE POSITION OF THE DUTCH FEDERATION OF LABOR UNIONS FNV IS NOT CREDIBLE BECAUSE THE UNION HAS CHANGED ITS DEMANDS SEVERAL TIMES SINCE NOVEMBER SOME 750 MEMBERS OF THE FNV UNION WHICH IS THE COUNTRY'S LARGEST LABOR UNION FEDERATION HAVE BEEN STRIKING AT HEINEKEN'S TWO BIG DUTCH BREWERIES AT ZOETERWOUDE AND DEN BOSCH THE WALKOUT BEGAN LATE LAST WEEK AFTER TALKS BROKE DOWN THAT RELATIVELY SMALL NUMBER OF STRIKERS HAS KEPT OTHER EMPLOYEES FROM WORK AS WELL AND HAS CUT OFF MOST PRODUCTION OF THE FLAGSHIP HEINEKEN AND AMSTEL BRANDS BEER 9404270053 940427 BUSINESS BRIEF BURLINGTON RESOURCES INC SOME MAXUS ENERGY ASSETS ACQUIRED FOR 375 MILLION BURLINGTON RESOURCES INC HOUSTON SAID IT ACQUIRED OIL AND NATURAL GAS ASSETS FROM MAXUS ENERGY CORP FOR 375 MILLION BURLINGTON RESOURCES A NATURAL GAS COMPANY SAID IT BOUGHT MAXUS ENERGY'S 871 GENERAL AND LIMITEDPARTNERSHIP INTERESTS IN DIAMOND SHAMROCK OFFSHORE PARTNERS LP AND SEPARATELY PURCHASED AN OFFSHORE PROPERTY AND AN ONSHORE PROPERTY FROM MAXUS ENERGY THE COMPANY SAID IT INTENDS TO PAY 448 A UNIT FOR THE REMAINING PARTNERSHIP UNITS WITH THAT PURCHASE TO CLOSE IN JULY UNIT HOLDERS OF RECORD ON MAY 13 1994 WILL ALSO BE ENTITLED TO A FIRSTQUARTER DISTRIBUTION OF 13 CENTS A UNIT BURLINGTON RESOURCES SAID THE PROPERTIES WHICH COMPRISE ABOUT 300000 ACRES ADD ABOUT 375 BILLION CUBIC FEET OF NATURAL GAS TO THE COMPANY'S RESERVES OF 62 TRILLION CUBIC FEET THE COMPANY SAID DAILY PRODUCTION ON THE PROPERTIES IS ABOUT 95 MILLION CUBIC FEET OF NATURAL GAS AND A SMALL AMOUNT OF OIL MAXUS ENERGY IS AN OIL AND NATURAL GAS COMPANY BASED IN DALLAS TEXAS 9404270052 940427 LEISURE & ARTS BOOKSHELF HOW NIXON'S METTERNICH SEES THE WORLD BY ENOCH POWELL IN DIPLOMACY SIMON & SCHUSTER 912 PAGES 35 HENRY KISSINGER HAS WRITTEN ON A HUGE SCALE A DESCRIPTION OF FOREIGN POLICY GROWING OUTWARD FROM EUROPE TO THAT WORLD INTO WHICH AMERICA HAS FOUND ITSELF DRAWN EVER SINCE IT CAME INTO EXISTENCE AND MORE ESPECIALLY SINCE ITS INVOLVEMENT IN THE 191418 WAR THOSE WHO WISH TO UNDERSTAND AMERICA'S INTERVENTIONS THEIR CAUSES AND CONSEQUENCES WILL HENCEFORTH BE ABLE TO USE THIS DESCRIPTIVE BOOK AS A TOOL AND A STIMULANT EVER SINCE THE MIDDLE AGES DOWN TO OUR LIFETIME EUROPEAN THINKING HAS BEEN OBSESSED WITH A PURSUIT OF THE BALANCE OF POWER IN STRATEGY AND THEREFORE IN DIPLOMACY THOUGH ENGLAND FOR OBVIOUS REASONS PLACED SPECIAL STORE UPON THAT CONCEPT IT WAS NOT AN IDEA OF ENGLISH MAKING WHEN THE SPANISH ARMADA SWEPT UP THE ENGLISH CHANNEL IN 1588 TO CONQUER THE OBSTREPEROUS ISLAND IT WAS OFF THE COAST OF THE LOW COUNTRIES THAT THE FLEET MET WITH DISASTER BEFORE BEING RAVAGED IN ATLANTIC STORMS THE NOTION WHICH EMBOLDENED THE DUTCH KING WILLIAM III TO CLAIM AND SEIZE THE ENGLISH CROWN IN 1688 WAS THAT OF A EUROPE ALREADY FAMILIAR WITH THE BALANCE BETWEEN SPAIN AND THE HOLY ROMAN EMPIRE UPON WHICH THE INHABITANTS OF THE LOW COUNTRIES AND OF OTHER LANDS DEPENDED TO GAIN AND TO DEFEND THEIR INDEPENDENCE BALANCE OF POWER IN FACT IS ALWAYS IMPLICIT IN THE COEXISTENCE OF LARGE SEPARATE POWERS AND IT DULY REASSERTS ITSELF AS LONG AS THOSE POWERS REMAIN SEPARATE IT WAS THE BALANCE OF POWER WHICH THE TREATY OF VIENNA IN 1815 SOUGHT IT WAS THE BALANCE OF POWER WHICH THE RISE OF THE NEW GERMAN EMPIRE OF BISMARCK THREATENED AFTER 1870 AND IT WAS THE BALANCE OF POWER WHICH NAZI GERMANY OVERTURNED BY MILITARY FORCE IN 1940 WITH THE ENTRY OF THE US INTO WORLD WAR II THE PERSPECTIVE SHIFTED THE BALANCE OF POWER WAS GLOBALIZED AND A MORAL MOTIVATION DEMOCRACY VERSUS COMMUNISM WAS INJECTED IN EUROPE ITSELF THE EASTWEST BALANCE OF POWER WAS REPLACED BY THE ANTITHESIS BETWEEN TWO BLOCS WHENCE AMERICAN PRESSURE UPON BRITAIN TO JOIN FRANCE IN BEING POLITICALLY AMALGAMATED WITH WEST GERMANY IT IS THIS TRANSFORMATION SCENE WHICH MR KISSINGER ANALYZES FROM THE AMERICAN STANDPOINT THE AMERICA OF THE 1920S AND 1930S REJECTED EVEN ITS OWN DOCTRINE OF COLLECTIVE SECURITY HE WRITES LEST IT LEAD TO INVOLVEMENT IN THE QUARRELS OF DISTANT BELLICOSE SOCIETIES DISILLUSIONMENT WITH THE RESULTS OF THE WAR ERASED TO A CONSIDERABLE EXTENT THE DISTINCTIONS BETWEEN THE INTERNATIONALISTS AND THE ISOLATIONISTS NOT EVEN THE MOST LIBERAL INTERNATIONALISTS ANY LONGER DISCERNED AN AMERICAN INTEREST IN SUSTAINING A FLAWED POSTWAR SETTLEMENT AND EVEN THE MOST DEDICATED INTERNATIONALISTS INSISTED THAT THE MONROE DOCTRINE SUPERSEDED THE LEAGUE OF NATIONS AND RECOILED BEFORE THE IDEA OF AMERICA'S JOINING LEAGUE ENFORCEMENT MEASURES EVEN ECONOMIC ONES THE RISE OF JAPAN BY THROWING THE PACIFIC INTO THE SCALES CONTRIBUTED TO UNDERMINING ACCEPTANCE OF THE EUROPEAN BALANCE OF POWER AND THUS TO ALTERING THE COMPLEXION OF AMERICA'S EVENTUAL INVOLVEMENT AGAIN IN EUROPEAN WAR SO DID THE INTROVERTED PREOCCUPATION OF THE SOVIET UNION WITH AFFAIRS IN ITS OWN STATE WHICH PUSHED FRANCE TOWARD THE UNSATISFACTORY SUBSTITUTE OF THE LITTLE ENTENTE IN THE EAST AND TOWARD SKEPTICISM ABOUT THE VALUE OF THE BRITISH ALLIANCE MR KISSINGER'S ANALYSIS HAS BEEN RENDERED MORE TIMELY AND NECESSARY BY CONTEMPORARY DEVELOPMENTS THE CONCLUSION OF THE COLD WAR BETWEEN AMERICA AND THE USSR HAS COINCIDED WITH A RISING TIDE OF RESENTMENT IN BRITAIN AND IN CONTINENTAL EUROPE AGAINST THE LOSS OF NATIONAL SELFDETERMINATION IN A EUROPEAN POLITICAL UNION WITH THESE DEVELOPMENTS AMERICAN POLICY AND PUBLIC OPINION IS NOW ENDEAVORING TO COPE HENCE IN THE PRESENT THE PHENOMENON OF AMERICA'S NEW WORLD ORDER AS EXHIBITED IN BOSNIA AND IN SOMALIA IT IS NOT MR KISSINGER'S FAULT BUT DUE TO THE NATURE OF THINGS THAT JUST AT THIS POINT HIS LIGHTS BECOME DIMMED BOTH BUSH AND CLINTON SPOKE OF THE NEW WORLD ORDER AS IF IT WERE JUST AROUND THE CORNER IN FACT IT IS STILL IN A PERIOD OF GESTATION AND ITS FINAL FORM WILL NOT BE VISIBLE UNTIL WELL INTO THE NEXT CENTURY HE WRITES PART EXTENSION OF THE PAST PART UNPRECEDENTED THE NEW WORLD ORDER LIKE THOSE WHICH IT SUCCEEDS WILL EMERGE AS AN ANSWER TO THREE QUESTIONS WHAT ARE THE BASIC UNITS OF THE INTERNATIONAL ORDER WHAT ARE THEIR MEANS OF INTERACTING WHAT ARE THE GOALS ON BEHALF OF WHICH THEY INTERACT THE KILLING QUESTION THERE IS THE FIRST ONE WHAT MR KISSINGER AND AMERICA MUST DO IN ORDER TO BASE THEIR DIPLOMACY UPON A SOUND FOUNDATION IS TO RECOGNIZE THE NATION STATE AS THE BASIC UNIT OF WHAT HE CALLS THE INTERNATIONAL ORDER BUT THE AMERICAN REPUBLIC HAVING ORIGINATED IN A PROTEST AGAINST THE NATION STATE IS NOT WELL SITUATED TO SOLVE THE INSOLUBLE WOODROW WILSON'S APPEAL TO AMERICA TO GO FORTH IN THE PURSUIT OF DEMOCRACY PRODUCED ACTS OF GREAT CREATIVITY IT ALSO LED TO SUCH DISASTROUS CRUSADES AS VIETNAM SO STATES MR KISSINGER BUT IS DEMOCRACY ITSELF NOT A MODALITY OF THE NATION STATE MR POWELL IS A FORMER BRITISH TREASURY MINISTER AND MEMBER OF PARLIAMENT 9404270051 940427 MARKETING BRIEF WASHINGTON POST CO CONCERN REPORTS LOWER NET AND REVENUE FOR 1ST QUARTER WASHINGTON POST CO REPORTED A 28 DROP IN FIRSTQUARTER PROFIT MAINLY REFLECTING LAST YEAR'S ONETIME GAIN FROM AN ACCOUNTING CHANGE THE WASHINGTON MEDIA COMPANY SAID PROFIT FELL TO 288 MILLION OR 246 A SHARE FROM 401 MILLION OR 340 A SHARE A YEAR EARLIER THE 1993 FIGURE INCLUDED A ONETIME GAIN OF 116 MILLION OR 98 CENTS A SHARE FOR INCOMETAX ACCOUNTING CHANGES THE RECENT QUARTER INCLUDED A PRETAX 25 MILLION GAIN FROM A RESTRUCTURING OF AN INVESTMENT REVENUE FELL ABOUT 1 TO 3584 MILLION FROM 3617 MILLION REVENUE AT THE COMPANY'S NEWSPAPER DIVISION FELL 2 REFLECTING LOWER ADVERTISING REVENUE AT THE WASHINGTON POST NEWSPAPER DAILY CIRCULATION AT THE POST FELL ABOUT 1 NEWSWEEK MAGAZINE'S REVENUE FELL 8 BECAUSE OF A SOFT MARKET FOR NATIONAL ADVERTISING THE COMPANY SAID THE BROADCAST DIVISION'S REVENUE ROSE 13 9404270050 940427 TEXAS JOURNAL SO THAT COMES TO 8000 ON THE WESTERN OMELET BY TARA PARKERPOPE DALLAS TALK ABOUT YOUR BIG TIPPERS WHEN ADOLPHUS HOTEL WAITRESS CONNIE FRANCES FORBIN SERVED BREAKFAST TO A GROUP OF BUSINESSMEN LAST FALL SHE GOT MORE THAN THE USUAL 15 GRATUITY IT TURNS OUT THAT THE GROUP INCLUDED HUTTUSH R MURINGI GENERAL MANAGER OF AIR ZIMBABWE MS FORBIN'S SOUTHERN HOSPITALITY MADE SUCH AN IMPRESSION THAT MR MURINGI INVITED THE WAITRESS AND TWO OF HER HOTEL COWORKERS TO TEACH AIR ZIMBABWE EMPLOYEES A THING OR TWO ABOUT SERVICE THE WORKERS WERE PROFESSIONAL BUT VERY FRIENDLY AND OPEN DESPITE AN OBVIOUSLY HECTIC ENVIRONMENT SAYS MR MURINGI AS QUOTED IN A NEWS RELEASE ISSUED BY THE ADOLPHUS AS A RESULT MR MURINGI FLEW MS FORBIN RESTAURANT SUPERVISOR TONJA MCFARLAND AND CONCIERGE LEOTIS WATSON TO ZIMBABWE THIS MONTH TO CONDUCT TRAINING SEMINARS AIR ZIMBABWE IS PAYING ALL EXPENSES PLUS A PERDIEM AMOUNT THE ADOLPHUS IS CONTINUING TO PAY THE WORKERS' SALARIES THE GROUP WHICH ATTENDED LEADERSHIP SEMINARS AND RECEIVED MALARIA SHOTS TO PREPARE FOR THEIR TRIP WILL RETURN TO DALLAS IN MAY 9404270048 940427 BUSINESS BRIEF COOPER INDUSTRIES INC COMPANY TO SELL OR SUSPEND LARGETRANSFORMER BUSINESS COOPER INDUSTRIES INC SAID IT WILL EITHER SELL OR SUSPEND ITS LARGE POWERTRANSFORMER BUSINESS BY THE END OF THIS YEAR ACCORDING TO COOPER CHAIRMAN ROBERT CIZIK THE MARKET FOR LARGE TRANSFORMERS USED PRIMARILY BY UTILITIES HAS BEEN DETERIORATING IN RECENT YEARS AND PROSPECTS FOR GROWTH WITHIN THE US WHERE MOST OF COOPER'S BUSINESS IN THIS SECTOR IS CENTERED ARE DIM MR CIZIK SAID A SPOKESWOMAN SAID THE HOUSTONBASED MAKER OF ELECTRICAL PRODUCTS TOOLS AND AUTOMOTIVE PARTS HAS BEEN TRYING TO SELL THE TRANSFORMER BUSINESS BUT AT THE MOMENT THERE AREN'T ANY INTERESTED PARTIES SHE SAID IF THE COMPANY INSTEAD PULLS OUT OF THE BUSINESS THERE WON'T BE ANY SIGNIFICANT EFFECT ON THIS YEAR'S RESULTS THE SPOKESWOMAN SAID THE COMPANY HAD ALREADY RESERVED FOR ANY CHARGES THE LARGETRANSFORMER LINE ACCOUNTED FOR ONLY 90 MILLION OF THE COMPANY'S 63 BILLION IN SALES LAST YEAR 9404270047 940427 BUSINESS BRIEF FIDELITY NATIONAL FINANCIAL INC BID TO ACQUIRE US FACILITIES IS VALUED AT 863 MILLION FIDELITY NATIONAL FINANCIAL INC A TITLE INSURANCE UNDERWRITER SAID IT OFFERED TO ACQUIRE US FACILITIES CORP FOR 15 A SHARE OR AN INDICATED 863 MILLION BASED ON THE INSURANCE HOLDING COMPANY'S 5750610 COMMON SHARES OUTSTANDING FIDELITY NATIONAL IRVINE CALIF OFFERED TO ACQUIRE US FACILITIES' STOCK EITHER FOR CASH OR IN A PARTCASH PARTSTOCK MERGER IN WHICH IT WOULD BUY HALF OF US FACILITIES' SHARES OUTSTANDING FOR 15 CASH EACH AND OFFER 15 IN FIDELITY NATIONAL COMMON STOCK FOR EACH OF THE REMAINING SHARES IN A TAXFREE EXCHANGE FIDELITY NATIONAL SAID IT OWNS AN 82 STAKE IN US FACILITIES INCLUDING 383300 SHARES IT BOUGHT BETWEEN MARCH 21 AND APRIL 26 AT 9125 TO 10625 EACH US FACILITIES SAID IT PLANNED TO HOLD A BOARD MEETING TO CONSIDER THE PROPOSAL AND ADDED THAT ANY TRANSACTION WOULD REQUIRE VARIOUS REGULATORY APPROVALS FIDELITY NATIONAL SAID ITS OFFER WILL EXPIRE BY THE CLOSE OF BUSINESS FRIDAY AND SAID IT WOULD CONSIDER A PROXY FIGHT IF US FACILITIES DOESN'T ENTER INTO NEGOTIATIONS OR COMMIT TO SEEK A SALE OF THE COMPANY 9404270045 940427 BUSINESS BRIEF CANADIAN PACIFIC LTD LOAN PACT TO ALLOW DISPOSAL OF UNITED DOMINION STAKE CANADIAN PACIFIC LTD SAID IT ENTERED INTO A 2111 MILLION CANADIAN DOLLAR US1536 MILLION LOAN AGREEMENT WITH TORONTODOMINION BANK THAT WILL ALLOW THE COMPANY TO DISPOSE OF THE REST OF ITS SHAREHOLDING IN UNITED DOMINION INDUSTRIES LTD THE LOAN WHICH MATURES IN AUGUST 1995 CAN BE REPAID EITHER IN CASH OR WITH ABOUT 63 MILLION UNITED DOMINION SHARES WHICH VALUES THE SHARES AT C3375 US2456 EACH CANADIAN PACIFIC SAID IT WILL PAY A BANK SUBSIDIARY C438 MILLION REPRESENTING C7 A UNITED DOMINION SHARE FOR THE RIGHT TO REPAY THE LOAN WITH THE SHARES TRADING IN SHARES OF UNITED DOMINION AN INDUSTRIAL CONCERN INCORPORATED IN TORONTO BUT BASED IN CHARLOTTE NC WAS HALTED YESTERDAY ON THE TORONTO STOCK EXCHANGE AT C28125 UP 50 CANADIAN CENTS CANADIAN PACIFIC A MONTREAL CONGLOMERATE OWNS 163 MILLION UNITED DOMINION SHARES OR ABOUT 45 OF THE TOTAL OUTSTANDING CANADIAN PACIFIC PREVIOUSLY SOLD EXCHANGEABLE DEBENTURES THAT WILL ALLOW THE COMPANY TO DISPOSE OF ITS OTHER 10 MILLION UNITED DOMINION SHARES BY THE END OF 1995 9404270044 940427 WHO'S NEWS BURLINGTON INDUSTRIES INC BURLINGTON INDUSTRIES INC GREENSBORO NC JOHN G MEDLIN JR WAS ELECTED A DIRECTOR OF THIS TEXTILE COMPANY EXPANDING BOARD MEMBERSHIP TO 10 MR MEDLIN 60 YEARS OLD IS CHAIRMAN OF WACHOVIA CORP A BANKING COMPANY BASED JOINTLY IN WINSTONSALEM NC AND ATLANTA 9404270043 940427 PENTAGON TO BOOST FUNDING OF FLATSCREEN TECHNOLOGY WASHINGTON THE PENTAGON PLANS TO PUMP MONEY INTO THE DEVELOPMENT OF A NEW GENERATION OF FLATPANEL COMPUTER SCREENS THE ANNOUNCEMENT SCHEDULED FOR TOMORROW REPRESENTS THE FURTHER DEVELOPMENT OF THE CLINTON ADMINISTRATION'S POLICY OF PICKING PROMISING COMMERCIAL TECHNOLOGIES FOR DEVELOPMENT THE CLINTON TEAM HAS BACKED A NUMBER OF COMMERCIAL TECHNOLOGY VENTURES INCLUDING BUILDING ENERGYEFFICIENT CARS AND DURABLE COMPOSITE MATERIALS IN AN EFFORT TO BOOST US COMPANIES' COMPETITIVENESS CURRENTLY THE PENTAGON SPENDS BETWEEN 50 MILLION AND 100 MILLION ON FLATSCREEN TECHNOLOGY WHICH CAN BE USED IN COMPUTER TERMINALS COCKPIT DISPLAYS AND BRIEFING ROOMS IT IS UNCLEAR HOW MUCH OF A BOOST IS PLANNED BUT THE CLINTON ADMINISTRATION RARELY SPENDS MORE THAN 200 MILLION ANNUALLY ON PARTICULAR TECHNOLOGY PROJECTS FLATSCREEN TV TECHNOLOGY IS DOMINATED BY JAPANESE COMPANIES A NUMBER OF SMALL US COMPANIES ARE RESEARCHING THE TECHNOLOGY AND BUILDING DISPLAYS FOR THE MILITARY BUT THEY HAVEN'T HAD THE FUNDS TO PRODUCE BIG RUNS OF COMPUTER SCREENS IF THE TECHNOLOGY CAN BE PERFECTED COMPANIES WANT TO PRODUCE WALLSIZED SCREENS FOR THE HOME WHICH WOULD BE AS THIN AS A PICTURE FRAME AND COULD SHOW OFF THE CRISP RESOLUTION OF HIGHDEFINITION TV PICTURES 9404270042 940427 BUSINESS BRIEF ELCOR CORP DALLAS CONCERN WILL BUILD 30 MILLION FIBERGLASS PLANT ELCOR CORP SAID IT WILL BUILD A 30 MILLION PLANT TO MANUFACTURE FIBERGLASS MAT ROOFING SUBSTRATE MATERIALS AND FACER PRODUCTS FOR THE CONSTRUCTION INDUSTRY THE DALLASBASED CONCERN WHICH MAKES ROOFING AND INDUSTRIAL PRODUCTS SAID THE NEW PLANT TO BE BUILT IN ENNIS TEXAS WILL HAVE THE CAPACITY TO PRODUCE ABOUT FIVE BILLION SQUARE FEET PER YEAR OF FIBERGLASS MAT MATERIALS AND SHOULD BE OPERATIONAL BY SPRING 1996 SEPARATELY ELCOR SAID THAT GAF BUILDING MATERIALS CORP RESPONDED TO A PATENT INFRINGEMENT SUIT ELCOR FILED IN FEDERAL COURT IN DALLAS AGAINST IT IN FEBRUARY BY SEEKING TO MOVE THE SUIT TO NEW JERSEY GAF ALSO FILED TWO LAWSUITS IN FEDERAL COURT IN THAT STATE SEEKING DECLARATORY JUDGMENTS THAT ELCOR'S PATENT IS INVALID UNENFORCEABLE OR NOT INFRINGED UPON BY GAF ROOFING SHINGLES 9404270041 940427 INTERNATIONAL BRIEF U S WEST INC CELLULARTELEPHONE VENTURE IS SET TO OPEN IN BULGARIA OFFICIALS AT U S WEST INC A TELEPHONE COMPANY IN ENGLEWOOD COLO CONFIRMED THAT THEY EXPECT TO INVEST 15 MILLION IN A BULGARIAN VENTURE TO OPEN THAT COUNTRY'S SECOND CELLULARTELEPHONE SYSTEM THE VENTURE CALLED MOBILTEL AG WAS PICKED LAST WEEK BY THE BULGARIAN GOVERNMENT AS THE WINNER OF A CONTEST AGAINST DEUTSCHE BUNDESPOST TELEKOM AND OTHERS TO RECEIVE THE NEW CELLULAR LICENSE IT WILL COMPETE AGAINST AN EXISTING CELLULAR SERVICE PARTOWNED BY BRITAIN'S CABLE & WIRELESS PLC THE U S WEST INVESTMENT FOR A STAKE OF ABOUT 25 IS RELATIVELY SMALL BUT WILL ADD ANOTHER PROPERTY TO THE COMPANY'S SWELLING PORTFOLIO OF EAST EUROPEAN CELLULARTELEPHONE HOLDINGS KRASSIMIR STOICHEFF A BULGARIAN ENTREPRENEUR WHO IS U S WEST'S MAIN PARTNER SAID THE MOBILTEL BUSINESS PLAN DOESN'T FORSEE BREAKING EVEN UNTIL ITS SIXTH YEAR OF OPERATION 9404270040 940427 BUSINESS BRIEF RUBBERMAID INC SUPPLIER BASE TO BE SLASHED IN A MOVE TOWARD EFFICIENCY RUBBERMAID INC SAID IT WILL REDUCE ITS SUPPLIER BASE BY 80 TO 1500 BY THE END OF 1996 AS PART OF A THREEYEAR EFFICIENCY IMPROVEMENT PLAN THE PLAN ALONG WITH OTHER STRATEGIC INITIATIVES TO DOUBLE THE WOOSTER OHIO PLASTIC AND RUBBER PRODUCTS MANUFACTURER'S BUSINESS OVER THE NEXT FIVE YEARS WERE PRESENTED AT THE ANNUAL MEETING BY CHAIRMAN WOLFGANG R SCHMITT IN AN INTERVIEW MR SCHMITT SAID RUBBERMAID HAS BEGUN DISCUSSIONS WITH ITS SUPPLIERS AND THE MOVE IS NOT INTENDED TO PUT A GUN TO THEIR HEADS AND DEMAND COST REDUCTIONS WE WANT TO HELP IMPROVE THE VALUE WE ARE CREATING WE DO NOT DO THESE THINGS ON A COST MENTALITY ONLY MR SCHMITT SAID THE PLAN IS NOT INTENDED TO FATTEN UP THE BOTTOM LINE BUT TO POSITION RUBBERMAID TO PURSUE NEW OPPORTUNITIES ESPECIALLY INTERNATIONALLY RUBBERMAID MAKES KITCHENWARE LAUNDRY AND BATH ACCESSORIES MICROWAVE OVENWARE OFFICE PRODUCTS AND CHILDREN'S TOYS IT HAD 1993 SALES OF 196 BILLION THE COMPANY HAS BEGUN HIRING SOME 300 NEW MANAGEMENT ASSOCIATES OVER THE NEXT THREE YEARS WHO WILL FOCUS ON INTERNATIONAL MARKETS WITH THE GOAL OF GENERATING 700 MILLION TO 800 MILLION IN NEW INTERNATIONAL SALES BY 1998 MR SCHMITT SAID 9404270039 940427 WHAT'S NEWS BUSINESS AND FINANCE BA T INDUSTRIES SAID IT AGREED TO ACQUIRE THE US TOBACCO BUSINESS OF AMERICAN BRANDS FOR 1 BILLION A CONSOLIDATION MOVE THAT IS EXPECTED TO INCREASE INDUSTRY PROFITS BY ELIMINATING A SMALL BUT DISRUPTIVE COMPETITOR THE BRUISED TOBACCO STOCKS ROSE ON THE NEWS OF THE DEAL WHICH STILL REQUIRES ANTITRUST CLEARANCE THE RISE IN BUSINESSES' EMPLOYMENT COSTS SLOWED DURING THE FIRST QUARTER FROM 1993'S LAST QUARTER SUGGESTING RENEWED ECONOMIC STRENGTH HASN'T INCREASED WAGE PRESSURES THE SUPREME COURT SAID A 1991 JOBBIAS LAW SHOULDN'T BE APPLIED RETROACTIVELY TO DISCRIMINATION THAT ALLEGEDLY TOOK PLACE BEFORE THE LAW WAS ENACTED THE RULING IS A VICTORY FOR EMPLOYERS THE SENATE APPROVED LEGISLATION THAT WOULD LET BANKS OPERATE INTERSTATE BRANCH NETWORKS A MOVE EXPECTED TO SPARK ADDITIONAL BANK MERGERS THE US MEXICO AND CANADA CREATED A FACILITY TO COUNTER EXCHANGERATE TURBULENCE IN THEIR CURRENCIES IN MEXICO THE COUNTRIES' 88 BILLION FOREIGNEXCHANGE SWAP FACILITY WAS SEEN AS A WAY TO SUPPORT THE PESO IBM'S HUMANRESOURCES CHIEF QUIT GERALD CZARNECKI WAS BROUGHT IN LESS THAN A YEAR AGO TO TAKE ON THE DAUNTING TASK OF REMAKING THE WORK FORCE AND RESHAPING THE GIANT'S CULTURE TENNECO PLANS AN INITIAL PUBLIC OFFERING OF 35 OF ITS CASE UNIT THE SECONDBIGGEST US MAKER OF FARM EQUIPMENT IN AN EFFORT TO TAKE ADVANTAGE OF THE AGRICULTURALMARKET REVIVAL TAMBRANDS NAMED THE PRESIDENT OF COLGATEPALMOLIVE'S US UNIT AS ITS PRESIDENT AND CHIEF EXECUTIVE ENDING A SEARCH THAT LASTED NEARLY A YEAR MEDCO CHAIRMAN WYGOD DROPPED OUT OF THE RUNNING TO SUCCEED ROY VAGELOS AS CHAIRMAN OF PARENT COMPANY MERCK WHEN VAGELOS RETIRES THIS FALL KODAK REPORTED HIGHER OPERATING EARNINGS FOR THE FIRST QUARTER DUE TO COSTCUTTING AND A SOLID PERFORMANCE IN ITS CORE IMAGING DIVISION HALLMARK CARDS AGREED TO PAY ABOUT 365 MILLION TO ACQUIRE RHI AN INDEPENDENT PRODUCER OF FAMILYORIENTED TV MOVIES AND MINISERIES SEGA AND MGM AGREED TO JOINTLY PRODUCE INTERACTIVE SOFTWARE TITLES FOR VIDEO GAMES MOVIES AND TV SHOWS THE DEAL WILL BE UNVEILED TOMORROW PHILLIPS PETROLEUM'S FIRSTQUARTER NET MORE THAN DOUBLED WHILE CHEVRON'S FELL 23 AMID LOWER OIL PRICES THAT AFFECTED RESULTS INDUSTRYWIDE SHORT INTEREST ON THE NASDAQ STOCK MARKET DECLINED IN MIDAPRIL MARKING THE FIRST DROP IN 15 MONTHS SOME 2800 CATERPILLER PRODUCTION WORKERS WALKED OFF THEIR JOBS FOR A DAY LEAVING MANAGEMENT AND OTHER WHITECOLLAR WORKERS TO FILL ORDERS FOR THE FIRM'S CONSTRUCTION EQUIPMENT THE WALKOUT DEMONSTRATED THE POTENTIAL DISRUPTIONS THE COMPANY FACES AS IT TRIES TO OPERATE WITHOUT A CONTRACT WITH THE UNITED AUTO WORKERS UNION DISNEY REPORTED A SECONDQUARTER NET INCREASE OF 16 DESPITE A LACKLUSTER PERFORMANCE BY ITS THEME PARKS REVENUE CLIMBED 12 TO 228 BILLION BONDS LEHMAN BROTHERS TREASURY INDEX 521743 UP 2389 COMMODITIES OIL 1691 A BARREL OFF 33 CENTS DOW JONES FUTURES INDEX 13505 UP 028 SPOT INDEX 13067 OFF 001 DOLLAR 10280 YEN OFF 030 16765 MARKS OFF 00030 9404270038 940427 BUSINESS BRIEF INGERSOLLRAND CO FIRSTQUARTER NET INCOME ROSE NINEFOLD TO 33 MILLION INGERSOLLRAND CO SAID COSTCONTAINMENT PROGRAMS AND IMPROVEMENTS IN MAJOR DOMESTIC MARKETS BOOSTED FIRSTQUARTER NET INCOME NET INCOME WAS 33 MILLION OR 31 CENTS A SHARE UP NINEFOLD FROM 36 MILLION OR FOUR CENTS A SHARE IN THE YEAREARLIER FIRST QUARTER THE YEAREARLIER QUARTER INCLUDED AN ACCOUNTING CHARGE OF 21 MILLION OR 20 CENTS A SHARE FOR POSTEMPLOYMENT BENEFITS YEAREARLIER EARNINGS BEFORE THE ONETIME CHARGE WERE 246 MILLION OR 24 CENTS A SHARE THE WOODCLIFF LAKE NJ COMPANY SAID REVENUE ROSE 6 TO 1 BILLION FROM 9521 MILLION LAST YEAR THE MANUFACTURER OF SUCH PRODUCTS AS MINING AND ROADCONSTRUCTION EQUIPMENT PUMPS AND POWER TOOLS SAID INCOMING ORDERS INCREASED 6 FROM LAST YEAR WITH IMPROVEMENTS IN DOMESTIC AUTO HOUSING AND CONSTRUCTION MARKETS ESPECIALLY STRONG THE COMPANY SAID ITS INTERNATIONAL MARKETS APPEAR TO HAVE STARTED A RECOVERY AS WELL 9404270037 940427 WHO'S NEWS BORDEN INC BORDEN INC COLUMBUS OHIO ROBERT P MAGRANN WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT SALES FOR BORDEN'S NORTH AMERICAN FOODS DIVISION HE HAD BEEN EXECUTIVE VICE PRESIDENT OF EJ BRACH CORP BORDEN PRODUCES PACKAGED FOODS CONSUMER PRODUCTS PACKAGING AND INDUSTRIAL PRODUCTS 9404270036 940427 WHAT'S NEWS WORLDWIDE SOUTH AFRICA'S BLACKS VOTED FOR THE FIRST TIME IN NATIONAL ELECTIONS REFUSING TO BE DISSUADED BY TERRORIST BOMBINGS TENS OF THOUSANDS OF BLACK VOTERS TURNED OUT FOR THE COUNTRY'S FIRST MULTIRACIAL ELECTION SINCE WHITES ARRIVED 342 YEARS AGO MANY BLACKS BROKE DOWN IN TEARS AFTER CASTING BALLOTS ON THE FIRST DAY OF THE THREEDAY VOTE WE NEED FREEDOM ONE ELDERLY WOMAN SAID ADDING WE ARE TIRED OF BEING SLAVES DESPITE LATEARRIVING BALLOTS AND LONG LINES THE MOOD WAS JUBILANT YESTERDAY'S BALLOTING WAS RESERVED FOR THE AGED INVALIDS PEOPLE IN HOSPITALS AND THE MILITARY GENERAL VOTING WILL TAKE PLACE TODAY AND TOMORROW SERBS MOVED THEIR HEAVY WEAPONS BACK FARTHER FROM GORAZDE THE SERB FORCES EFFECTIVELY COMPLIED WITH A NATO DEADLINE TO WITHDRAW HEAVY WEAPONRY FROM AROUND THE BOSNIAN TOWN AVERTING ANY NEED FOR NEW AIR STRIKES FOR NOW A TOP UN OFFICIAL ANNOUNCED LAST NIGHT SECRETARY OF STATE CHRISTOPHER SAID RECONNAISSANCE FLIGHTS TODAY WOULD DETERMINE THE EXTENT OF SERB COMPLIANCE WITH THE DEADLINE WHICH CALLED FOR THE WEAPONS TO BE MOVED OUT OF A 12MILE EXCLUSION ZONE AROUND GORAZDE A UN AID CONVOY WAS FINALLY PERMITTED TO REACH GORAZDE WITH 80 TONS OF FOOD AFTER BEING BLOCKED ALL DAY MONDAY BY SERB TROOPS A TAIWANESE PLANE CRASHED IN CENTRAL JAPAN KILLING 261 PEOPLE THE CHINA AIRLINES PLANE CRASHED AND BURNED WHILE ATTEMPTING TO LAND AT NAGOYA AIRPORT ONLY 10 PEOPLE SURVIVED THE CRASH WHICH WAS JAPAN'S SECOND WORST AIR DISASTER THE CAUSE OF THE ACCIDENT REMAINED A MYSTERY BUT THE AIRBUS A300600R'S FLIGHT AND VOICE RECORDERS WERE RECOVERED THE PLANE FLYING TO NAGOYA FROM TAIPEI HIT NOSEFIRST NEAR THE BEGINNING OF THE RUNWAY AND APPEARED NOT TO HAVE ITS LANDING GEAR DOWN ACCORDING TO ONE REPORT OFFICIALS OF PARISBASED AIRBUS INDUSTRIE SAID THE PLANE DELIVERED TO CHINA AIRLINES IN 1991 WAS THE FIRST OF THAT MODEL TO CRASH THE ROSE LAW FIRM SUED THE RTC ALLEGING THAT THE AGENCY IS TRYING TO COERCE THE FIRM INTO TURNING OVER A LIST OF CLIENTS GOING BACK NINE YEARS THE LITTLE ROCK ARK LAW FIRM HAS BEEN CAUGHT UP IN WHITEWATER INVESTIGATIONS THE SENATE'S MAJORITY LEADER IS PURSUING A STRATEGY TOWARD HEALTHCARE REFORM THAT DISCOURAGES SUGGESTIONS OF NEW TAXES MITCHELL INSTEAD WANTS TO RELY MORE ON COSTCONTAINMENT AND TARGETED SUBSIDIES FOR SMALL BUSINESSES ACCUSED CIA SPY AMES HAS AGREED TO PLEAD GUILTY TO CHARGES OF ESPIONAGE AND TAX EVASION US OFFICIALS SAID AMES IS FACING A PROBABLE SENTENCE OF LIFE IMPRISONMENT ACCORDING TO PEOPLE WHO ARE CLOSE TO THE CASE THE BREAKUP OF JAPAN'S COALITION LESSENS CHANCES THAT TOKYO WILL BE ABLE TO UNVEIL CRITICAL ECONOMIC STEPS BY ITS SELFIMPOSED JULY DEADLINE THE US HAS BEEN PRESSING FOR A JAPANESE INCOMETAX CUT AND MARKETOPENING MEASURES MEXICAN AUTHORITIES BELIEVE THE GROUP THAT KIDNAPPED A PROMINENT RETAILING EXECUTIVE ON MONDAY MAY BE THE SAME ONE THAT SEIZED A BILLIONAIRE BANKER LAST MONTH THE US ENVOY TO HAITI IS RESIGNING THIS WEEK THE ENVOY LAWRENCE PEZZULLO HAD TRIED TO PROMOTE A NEW GOVERNMENT FOR HAITI THAT WOULD HAVE INCLUDED BACKERS OF THE MILITARY REGIME THAT OUSTED ARISTIDE A SENATE PANEL VOTED TO BAN RECREATIONAL TRAVEL BY LAWMAKERS THAT IS FINANCED BY OUTSIDE INTERESTS AND TO PROHIBIT GIFTS FROM LOBBYISTS THE MOVE PUTS PRESSURE ON THE HOUSE TO FOLLOW SUIT IN NEGOTIATIONS OVER A BROADER LOBBYREFORM BILL SEN BOREN WILL RESIGN TO HEAD THE UNIVERSITY OF OKLAHOMA ACQUAINTANCES SAID THE OKLAHOMA DEMOCRAT WHO HAS BATTLED FOR CAMPAIGN REFORM AND IN DEFENSE OF HIS STATE'S ENERGY INDUSTRY PLANS TO ANNOUNCE HIS RESIGNATION TODAY PHYSICISTS HAVE ACCUMULATED EVIDENCE OF THE EXISTENCE OF THE TOP QUARK THE LAST OF A GROUP OF SUBATOMIC PARTICLES THOUGHT TO BE THE BUILDING BLOCKS OF MATTER THE FINDING IF CONFIRMED WOULD MARK THE END OF A GLOBAL SEARCH FOR THE SIX QUARKS THAT MAKE UP PROTONS AND NEUTRONS INSIDE ATOMS 9404270035 940427 INTERNATIONAL BRIEF AKZO NOBEL NV FIRSTQUARTER PROFIT SURGED 30 ON STRENGTHENED SALES RECENTLY MERGED DUTCHSWEDISH CHEMICAL GROUP AKZO NOBEL NV SAID FIRSTQUARTER EARNINGS SURGED 30 FROM THE REVISED YEAREARLIER LEVEL AS SALES ROSE 87 THE FIRSTQUARTER REPORT IS THE COMPANY'S FIRST SINCE THE FORMER AKZO NV ACQUIRED SWEDISH CHEMICAL GROUP NOBEL INDUSTRIER AB IN FEBRUARY NET INCOME ROSE TO 281 MILLION GUILDERS 1487 MILLION OR 396 GUILDERS 209 A SHARE FROM 216 MILLION GUILDERS OR 304 GUILDERS A SHARE PERSHARE RESULTS WERE ABOUT IN LINE WITH ANALYSTS' EXPECTATIONS OF FOUR GUILDERS A SHARE AKZO SAID YEAREARLIER FIGURES WERE RESTATED ON A PROFORMA BASIS TO COMBINE THE RESULTS OF THE PREMERGER COMPANIES FOR COMPARISON'S SAKE GLOBAL SALES IN THE FIRST QUARTER ROSE TO 578 BILLION GUILDERS FROM THE PROFORMA 532 BILLION GUILDERS OPERATING COSTS ROSE TO 532 BILLION GUILDERS FROM 496 BILLION GUILDERS IN THE CHEMICALS DIVISION THE SEVERE WINTER STORMS IN NORTH AMERICA AND EUROPE HELPED BUOY SALES OF AKZO SALT OPERATIONS THE COMPANY IS A MAJOR PRODUCER OF ROAD DEICING SALTS 9404270033 940427 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 3/4 HIGH 3 3/8 LOW 3 5/8 BID 3 5/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 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 382 30 TO 44 DAYS 387 45 TO 59 DAYS 395 60 TO 74 DAYS 404 75 TO 89 DAYS 408 90 TO 119 DAYS 420 120 TO 149 DAYS 432 150 TO 179 DAYS 445 180 TO 259 DAYS 470 260 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 389 30 DAYS 401 60 DAYS 414 90 DAYS CERTIFICATES OF DEPOSIT 331 ONE MONTH 340 TWO MONTHS 355 THREE MONTHS 397 SIX MONTHS 454 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 376 ONE MONTH 408 THREE MONTHS 445 SIX MONTHS BANKERS ACCEPTANCES 377 30 DAYS 390 60 DAYS 404 90 DAYS 414 120 DAYS 422 150 DAYS 430 180 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 1/16 3 15/16 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 7/8 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 546 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 820 60 DAYS 832 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 825 60 DAYS 833 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 635 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 301 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9404270032 940427 BUSINESS BRIEF QUAKER OATS CO THIRDPERIOD NET FELL 42 BUT OPERATING PROFIT ROSE QUAKER OATS CO REPORTED HIGHER OPERATING PROFIT BUT LOWER NET INCOME IN ITS THIRD QUARTER AND INDICATED REENGINEERING EFFORTS TO IMPROVE PERFORMANCE COULD RESULT IN CHARGES IN FISCAL 1995 FOR THE PERIOD ENDED MARCH 31 THE HUMAN AND PET FOOD MAKER EARNED 738 MILLION OR 108 A SHARE DOWN 42 FROM 77 MILLION OR 105 A SHARE A YEAR EARLIER LAST YEAR'S FIGURE INCLUDES A GAIN OF 83 MILLION OR 11 CENTS A SHARE FROM A UNIT'S SALE SALES ROSE 67 TO 144 BILLION SOME EMPLOYEE REDUCTIONS ARE LIKELY AS THE COMPANY ABANDONS SOME DEPARTMENTS IN FAVOR OF PRODUCT TEAMS AT ITS CHICAGO HEADQUARTERS AND UNDERTAKES OTHER EFFICIENCY MOVES QUAKER SAID THE COMPANY REPORTED DOUBLEDIGIT GROWTH IN ITS GATORADE CEREALS SNACKS AND RICE AND PASTA UNITS IN NORTH AMERICA WITH A SLIGHT DECLINE OVERSEAS DUE TO LOWER PET FOOD AND CEREAL SALES IN EUROPE 9404270031 940427 BUSINESS BRIEF MELVILLE CORP NARROWER LOSS IS REPORTED FOR THE FISCAL FIRST QUARTER RETAILER MELVILLE CORP REPORTED A SHARPLY NARROWED LOSS FOR THE FISCAL FIRST QUARTER AIDED BY THIS YEAR'S EASTER SELLING SEASON MELVILLE SAID IT HAD A LOSS OF 25 MILLION OR SIX CENTS A SHARE COMPARED WITH A LOSS OF 217 MILLION OR 24 CENTS A SHARE A YEAR EARLIER SALES ROSE 17 TO 238 BILLION THE RYE NY COMPANY'S OPERATING PROFIT TOTALED 8 MILLION FOR THE QUARTER ENDED APRIL 4 COMPARED WITH A YEAREARLIER OPERATING LOSS OF 297 MILLION THE SPECIALTY RETAILER SAID ITS CVS PRESCRIPTION DRUGS HEALTH AND BEAUTY STORES HAD FAVORABLE GAINS WHILE MARSHALLS STORES REBOUNDED IN FEBRUARY AND MARCH AFTER HARSH WEATHER IN JANUARY THE TOYS AND HOUSEHOLDFURNISHINGS SEGMENT BENEFITED FROM INCREASED AVAILABILITY OF CLOSEOUT MERCHANDISE AT KAYBEE STORES THE COMPANY SAID 9404270030 940427 BUSINESS BRIEF COMPUSA INC NET INCOME DECLINED 22 IN THE FISCAL THIRD QUARTER COMPUSA INC DALLAS STUNG BY HIGH INTEREST EXPENSES AND WIDESPREAD PRICECUTTING SAID ITS NET INCOME DROPPED 22 IN THE FISCAL THIRD QUARTER FOR THE QUARTER ENDED MARCH 26 THE COMPUTERSUPERSTORE OPERATOR REPORTED NET INCOME OF 34 MILLION OR 18 CENTS A SHARE COMPARED WITH 43 MILLION OR 23 CENTS A SHARE A YEAR EARLIER SALES JUMPED 63 TO 5991 MILLION FROM 3665 MILLION THE LOWER EARNINGS IN LINE WITH MOST ANALYSTS' ESTIMATES CAME AMID AN INTENSE COSTCUTTING CAMPAIGN AT COMPUSA THE ONETIME HIGHFLIER REPORTED A LOSS IN ITS SECOND QUARTER FOLLOWING HIGHERTHANEXPECTED STORE PREOPENING EXPENSES DURING THE MOST RECENT QUARTER PREOPENING EXPENSES DROPPED TO 212000 A STORE DOWN FROM A HIGH OF 355000 AND PERSTORE OPERATING EXPENSES FELL TO THEIR LOWEST LEVEL IN MORE THAN A YEAR JAMES HALPIN THE COMPANY'S CHIEF EXECUTIVE OFFICER BLAMED THE LOWER EARNINGS IN PART ON INTEREST COSTS TIED TO A RECENT OFFERING INTEREST EXPENSES DURING THE QUARTER TOTALED 31 MILLION COMPARED WITH 520000 A YEAR EARLIER IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY COMPUSA SHARES FELL 375 CENTS TO CLOSE AT 18 9404270029 940427 BUSINESS BRIEF UNC INC FIRM ENTERS 105 MILLION BID FOR AVIALL REPAIR OPERATIONS UNC INC ANNAPOLIS MD ENTERED THE BIDDING FOR AN ENGINEREPAIR AND TERMINALSERVICES BUSINESS OF AVIALL INC WITH AN 105 MILLION OFFER DALLASBASED AVIALL A COMPANY SPUN OFF LAST YEAR FROM RYDER SYSTEM INC CONFIRMED RECEIPT OF THE UNC OFFER AND SAID IT IS NEGOTIATING TO SELL THE BUSINESSES TO A PRIVATE GROUP FOR AN UNDISCLOSED PRICE AVIALL SAID IT WOULD CONSIDER BOTH OFFERS AT A BOARD MEETING MAY 17 UNC SAID IT UNDERSTOOD THE OTHER OFFER WAS IN THE 89 MILLION RANGE AVIALL HAS SAID IT PLANNED TO SELL ITS BUSINESSAVIATION AND HELICOPTERENGINE REPAIR AND OVERHAUL OPERATIONS AS WELL AS AIRCRAFT SERVICES AND TERMINAL SERVICES AT DALLAS LOVE FIELD AVIALL ALSO DISTRIBUTES AIRCRAFT PARTS AND REPAIRS AIRLINE ENGINES UNC BUILDS AND OVERHAULS JET ENGINES AND AIRCRAFT COMPONENTS AND PROVIDES OTHER AVIATION MAINTENANCE AND TRAINING 9404270028 940427 BUSINESS BRIEF BETHLEHEM STEEL CORP PROFIT TOTALED 129 MILLION IN 1ST PERIOD REVERSING LOSS BETHLEHEM STEEL CORP AIDED BY HIGHER DEMAND AND PRICES EARNED 129 MILLION OR TWO CENTS A SHARE IN THE FIRST QUARTER REVERSING A YEAREARLIER LOSS OF 408 MILLION OR 53 CENTS A SHARE AND BETHLEHEM PREDICTED THAT SECONDQUARTER RESULTS WILL IMPROVE OVER THE FIRST QUARTER IN A STATEMENT CURTIS H BARNETTE CHAIRMAN AND CHIEF EXECUTIVE OF THE BETHLEHEM PA COMPANY SAID DEMAND FOR OUR SHEET AND PLATE PRODUCTS REMAINS STRONG SALES AT THE NATION'S SECONDBIGGEST STEELMAKER ROSE 11 TO 113 BILLION FROM 102 BILLION EXCLUDING THE SPECIAL FACTORS BETHLEHEM TOPPED ANALYSTS' ESTIMATES OF ABOUT 11 CENTS A SHARE SAID J CLARENCE MORRISON AN ANALYST WITH PRUDENTIAL SECURITIES WHO CALLED THE PERFORMANCE IMPRESSIVE IN LATE COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE SHARES WERE UP 25 CENTS AT 20875 9404270027 940427 CORRECTIONS & AMPLIFICATIONS TOWER RECORDS INC HAD 1225 MILLION IN SALES IN JAPAN FOR THE YEAR ENDED APRIL 30 1993 IN A PAGEONE ARTICLE APRIL 15 ABOUT THE RISE IN JAPAN'S IMPORTS THE TIME PERIOD WAS MISSTATED AS LAST YEAR 9404270026 940427 BUSINESS BRIEF CANYON RESOURCES CORP MINE DEVELOPMENT PLANNED FOR CALIFORNIA GOLD PROJECT CANYON RESOURCES CORP SAID THAT A DEFINITIVE STUDY CONFIRMED THAT THE MINING CONCERN CAN ECONOMICALLY DEVELOP ITS WHOLLY OWNED BRIGGS GOLD PROJECT IN CALIFORNIA AS AN OPENPIT MINING OPERATION ASSUMING A GOLD PRICE OF 375 AN OUNCE CANYON RESOURCES BASED IN GOLDEN COLO SAID MINEABLE RESERVES AT BRIGGS INCLUDE 636000 OUNCES OF GOLD CONTAINED IN 215 MILLION TONS OF ORE WITH AN AVERAGE GRADE OF 0030 OUNCES OF GOLD A TON THE STUDY PROJECTS AVERAGE PRODUCTION OF 75000 OUNCES OF GOLD A YEAR OVER A PERIOD OF 6 1/2 YEARS THE STUDY PROJECTS INITIAL CAPITAL EXPENDITURES OF 183 MILLION WITH AN ADDITIONAL 84 MILLION FOR PREPRODUCTION STRIPPING AND WORKING CAPITAL OVERALL THE COMPANY PROJECTS CASH OPERATING COSTS OF 233 AN OUNCE OF RECOVERED GOLD CANYON RESOURCES SAID THAT MINE DEVELOPMENT COULD BEGIN THIS FALL 9404270025 940427 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 MORTGAGE CORP 150 MILLION OF DEBENTURES DUE MAY 3 2004 PRICED AT PAR TO YIELD 754 ACCORDING TO MCM CORPORATEWATCH THE NOTES WHICH ARE NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 68 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO SOUTHTRUST CORP 100 MILLION OF SUBORDINATED NOTES DUE MAY 1 2004 PRICED AS 7625 AT 99592 TO YIELD 7684 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 85 BASIS POINTS ABOVE TREASURYS RATED BAA1 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY STANDARD & POOR'S RATINGS GROUP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO TEXAS UTILITIES ELECTRIC CO 300 MILLION OF FLOATINGRATE FIRST MORTGAGE NOTES DUE MAY 1 1999 PRICED 99889 TO YIELD THE LONDON INTERBANK OFFERED BANK RATE PLUS 40 BASIS POINTS ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR TWO YEARS FLOATS AND PAYS QUARTERLY AT 375 BASIS POINTS ABOVE LIBOR RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC MK RAIL CORP INITIAL OFFERING OF SIX MILLION COMMON SHARES PRICED AT 16 EACH THROUGH MORGAN STANLEY & CO AND CS FIRST BOSTON INC MK RAIL IS A SUBSIDIARY OF MORRISON KNUDSEN CORP DEVELOPMENT AUTHORITY OF DEKALB COUNTY GA 788 MILLION OF UNIVERSITY REVENUE BONDS PRICED BY A KIDDER PEABODY & CO GROUP THE 693 MILLION TAXEXEMPT SERIES ARE PRICED TO YIELD FROM 35 IN 1995 TO 6125 IN 2014 AND 2015 YIELDS FOR THE 95 MILLION TAXABLE SERIES C BONDS HAVE YET TO BE SET KIDDER PEABODY SAID MOODY'S HAS RATED THE ISSUE DOUBLEA1 AND S&P HAS ASSIGNED A DOUBLEAMINUS RATING SCHOOL BOARD OF HILLSBOROUGH COUNTY FLA 2182 MILLION OF SERIES 1994 CERTIFICATES OF PARTICIPATION PRICED BY A PAINEWEBBER INC GROUP YIELDS RANGE FROM 425 IN 1996 TO 615 IN 2014 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P MICHIGAN MUNICIPAL BOND AUTHORITY 1265 MILLION OF SERIES 1994A REVENUE NOTES PRICED BY A CS FIRST BOSTON GROUP THE NOTES WHICH HAVE A 425 COUPON ARE PRICED AT 100724 TO YIELD 35 MAY 5 1995 S&P HAS RATED THE OFFERING SP1PLUS NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY 1309 MILLION OF SERIES 1994A MORTGAGE REVENUE BONDS PRICED BY A MERRILL LYNCH & CO GROUP YIELDS RANGE FROM 295 IN AUGUST TO 632 IN 2027 THE BONDS ARE INSURED BY THE FEDERAL HOUSING ADMINISTRATION PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY 3562 MILLION OF SERIES 1994 ECONOMIC DEVELOPMENT REVENUE BONDS PRICED BY A LEHMAN BROTHERS GROUP YIELDS RANGE FROM 32 IN JANUARY 1995 TO 612 IN JANUARY 2014 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P WASHINGTON STATE 300 MILLION OF SERIES 1994 GENERALOBLIGATION IMPROVEMENT BONDS APPARENTLY WON BY A LEHMAN BROTHERS GROUP YIELDS RANGE FROM 34 IN 1995 TO 61 IN 201719 BOTH MOODY'S AND S&P RATED THE BONDS DOUBLEA WASHINGTON STATE 35 MILLION OF SERIES 1994 MOTOR VEHICLE FUEL TAX BONDS APPARENTLY WON BY A MERRILL LYNCH & CO GROUP YIELDS RANGE FROM 325 IN 1995 TO 61 IN 2019 BOTH MOODY'S AND S&P HAVE RATED THE BONDS DOUBLEA GOLDMAN SACHS CANADA 544 MILLION CANADIAN DOLLARS OF MORTGAGEBACKED SECURITIES PRICED IN EIGHT PARTS THE ISSUE'S OFFICIAL TITLE IS GLOBAL EXEMPT CERTIFICATES OF OWNERSHIP IN NHA MBS SECURITIES INC BUT IS KNOWN AS A GLOBAL ECONS THE SINGLEPURPOSE ENTITY IS A POOL OF FEDERAL GOVERNMENTINSURED MORTGAGES FROM EIGHT CANADIAN FINANCIAL INSTITUTIONS THE UNDERWRITERS LED BY GOLDMAN SACHS INCLUDE LEVESQUE BEAUBIEN GEOFFRION INC NESBITT THOMSON INC AND SCOTIAMCLEOD INC CLASS 1 IS C250 MILLION OF CERTIFICATES PRICED AS 68S AT 9844 TO YIELD 742 OCT 1 1997 CLASS 2 IS C157 MILLION OF CERTIFICATES PRICED AS 74S AT 99212 TO YIELD 757 DEC 1 1997 CLASS 3 IS C127 MILLION OF CERTIFICATES PRICED AS 7625S AT 99372 TO YIELD 773 NOV 1 1998 GOLDMAN SACHS ALSO ISSUED C95 MILLION OF CLASS PO OR PRINCIPAL ONLY CERTIFICATES DUE NOV 1 1998 IN ADDITION GOLDMAN SACHS OFFERED C175000 OF CLASS R AND C550000 OF CLASS RL CERTIFICATES THESE ARE RESIDUAL CERTIFICATES WITH YIELDS DEPENDING ON PACE OF PREPAYMENTS OF UNDERLYING MORTGAGES BOTH ARE DUE NOV 1 1998 IN ADDITION GOLDMAN SACHS IS SELLING CLASS EI OR EXCESSINTEREST CERTIFICATES AND CLASS PIP OR PENALTYINTEREST PAYMENT CERTIFICATES THESE CERTIFICATES WHICH HAVE NO PRINCIPAL BALANCE AND AREN'T ENTITLED TO PRINCIPAL DISTRIBUTIONS ARE DUE NOV 1 1998 CHARMING SHOPPES INC 200 MILLION OF RETAIL CREDITCARD ASSETBACKED SECURITIES PRICED AS 7 AT 99964 TO YIELD 701 55BASISPOINTS ABOVE THE TREASURY'S WHENISSUED FIVEYEAR NOTE ACCORDING TO MCM CORPORATEWATCH THE CERTIFICATES ARE BACKED BY CREDIT CARDS USED IN CHARMING SHOPPES RETAIL STORES FASHION BUG AND FASHION BUG PLUS THE CERTIFICATES WHICH WERE STRUCTURED WITH A FIVEYEAR BULLET MATURITY ARE SUPPORTED BY A CASH COLLATERAL ACCOUNT EQUAL TO 215 OF THE DEAL THE ISSUE WAS OFFERED BY UNDERWRITERS LED BY JP MORGAN SECURITIES CORP NAVISTAR FINANCIAL CORP 280 MILLION OF EQUIPMENTLOAN ASSETBACKED CERTIFICATES PRICED IN TWO PARTS BY UNDERWRITERS LED BY CHEMICAL SECURITIES INC AND JP MORGAN SECURITIES CORP THE CERTIFICATES WERE BACKED BY RETAIL INSTALLMENT SALES CONTRACT FOR NEW AND USED VEHICLES THE 896 MILLION IN FIXEDRATE CLASS A1 CERTIFICATES WERE PRICED WITH A BOND EQUIVALENT YIELD OF 20BASISPOINTS ABOVE THE FOURMONTH LIBOR THE CERTIFICATES WITH AN AVERAGE LIFE OF 041 YEAR WERE RATED TRIPLEA BY MOODY'S AND S&P THE 1806 MILLION IN FIXEDRATE CLASS A2 CERTIFICATES WERE PRICED TO YIELD 55BASISPOINTS ABOVE THE TREASURY'S 4 NOTES OF JANUARY 1996 THE CERTIFICATES WITH AN AVERAGE LIFE OF 175 YEARS WERE RATED TRIPLEA BY MOODY'S AND S&P THE CLASS INCLUDED A 98 MILLION SUBORDINATE CLASS PRICING DETAILS WERE NOT AVAILABLE NAVISTAR FINANCIAL IS A WHOLLYOWNED SUBSIDIARY OF NAVISTAR INTERNATIONAL TRANSPORTION CORP ABBEY NATIONAL TREASURY SERVICES PLC UK PARENT 150 MILLION OF 875 SUBORDINATED EUROBONDS DUE MAY 24 2004 AT ISSUE PRICE 100887 VIA SALOMON BROTHERS INTERNATIONAL LTD AND SG WARBURG SECURITIES LTD REOFFERED AT 99337 TO YIELD 885 A MARGIN OF 85 BASIS POINTS ABOVE COMPARABLE UK GILT GUARANTOR ABBEY NATIONAL PLC FEES TWO BAYERISCHE HYPOTHEKEN UND WECHSELBANK AG GERMANY 150 BILLION ITALIAN LIRE OF 9625 EUROBONDS DUE MAY 20 2004 AT ISSUE PRICE 10045 VIA BANCA COMMERCIALE ITALIANA BONDS YIELD 988 AFTER FEES OF TWO POINTS BONDS CALLABLE ANNUALLY FROM MAY 1997 AT PAR BELGIUM SOVEREIGN FIVE BILLION FRENCH FRANCS OF 6875 EUROBONDS DUE MAY 30 2002 AT ISSUE AND REOFFER PRICE 9955 VIA CREDIT COMMERCIAL DE FRANCE BONDS YIELD 695 A MARGIN OF 20 BASIS POINTS ABOVE COMPARABLE FRENCH TREASURY FEES 03 DEUTSCHE BANK AUSTRALIA LTD GERMAN PARENT 150 MILLION AUSTRALIAN DOLLARS OF 7 EUROBONDS DUE JUNE 10 1997 AT ISSUE PRICE 100375 VIA DEUTSCHE BANK AG LONDON BONDS YIELD 743 AFTER FEES OF 15 GUARANTOR DEUTSCHE BANK AG DEUTSCHE SIEDLUNGS UND LANDESRENTENBANKEN GERMANY 30 BILLION YEN OF 38 EUROBONDS DUE MAY 25 1999 AT ISSUE AND REOFFER PRICE PAR VIA NOMURA INTERNATIONAL PLC FEES 025 EASTERN ELECTRICITY PLC UK 350 MILLION OF 8375 EUROBONDS DUE MARCH 31 2004 AT ISSUE PRICE 101246 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD AND CS FIRST BOSTON INC REOFFERED AT 99596 TO YIELD 8444 A SPREAD OF 55 BASIS POINTS ABOVE COMPARABLE UK GILT BONDS CALLABLE AT HIGHER OF LEVEL YIELD WITH GILTS OR AT PAR PUT OPTION EXERCISABLE IF COMPANY RESTRUCTURING OCCURS WHICH IS NEGATIVE FOR INTEREST TO BONDHOLDERS OR FOR DEBT RATING FEES TWO FORD CREDIT CANADA LTD US PARENT C100 MILLION OF 8125 EUROBONDS DUE MAY 25 1999 AT ISSUE PRICE 100979 VIA SCOTIAMCLEOD INC REOFFERED AT 99429 TO YIELD 827 A SPREAD OF 59 BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT NOTE GUARANTOR FORD MOTOR CREDIT CO FEES 1875 SWEDEN SOVEREIGN 75 BILLION YEN OF 3875 EUROBONDS DUE JUNE 21 1999 AT ISSUE AND REOFFER PRICE 99775 VIA GOLDMAN SACHS INTERNATIONAL FEES 025 PAYABLE SEMIANNUALLY 9404270023 940427 AMES ACCEPTS PACT TO PLEAD GUILTY IN SPYING CASE BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ALDRICH AMES THE CENTRAL INTELLIGENCE AGENCY EMPLOYEE ACCUSED OF ACCEPTING OVER 25 MILLION FROM THE RUSSIANS FOR SELLING VITAL US SECRETS HAS AGREED TO PLEAD GUILTY TO CHARGES OF SPYING AND TAX EVASION MR AMES FACES A PROBABLE SENTENCE OF LIFE IMPRISONMENT ACCORDING TO PEOPLE CLOSE TO THE CASE AS PART OF A PLEABARGAINING AGREEMENT MR AMES'S COLOMBIANBORN WIFE ROSARIO WILL RECEIVE A MUCH LESSER PUNISHMENT FOR THE SAME CHARGES ABOUT FIVE YEARS IN FEDERAL PRISON THE PEOPLE SAID NEITHER FEDERAL PROSECUTORS NOR MR AMES'S ATTORNEY PLATO CACHERIS WOULD COMMENT ABOUT THE AGREEMENT IT IS DESIGNED TO PRECLUDE A LENGTHY AND EMBARRASSING TRIAL FOR THE SPY AGENCY AND AT THE SAME TIME EASE MR AMES'S CONCERNS FOR HIS WIFE AND THEIR YOUNG SON WHO IS LIVING WITH MRS AMES'S MOTHER IN COLOMBIA THE SETTLEMENT MEANS THAT THE MATTER OF HOW THE 31YEAR CAREER CIA EMPLOYEE WAS ALLEGEDLY ABLE TO COLLECT AND SELL VITAL CIA SECRETS EVEN AFTER BEING REMOVED FROM HIS JOB OF RECRUITING DOUBLE AGENTS TO WORK IN THE FORMER SOVIET BLOC WILL NOW COME TO THE FORE AN INVESTIGATION HEADED BY THE CIA'S INSPECTOR GENERAL AND OVERSEEN BY A PANEL OF OUTSIDE EXPERTS WILL ATTEMPT TO DETERMINE WHO MAY HAVE GIVEN MR AMES ACCESS TO OTHER SECRETS SUCH AS WHAT THE US NAVY KNOWS ABOUT EVASIVE SUBMARINE TACTICS USED BY THE RUSSIANS THE NAVY MATERIAL WAS FOUND IN MR AMES'S OFFICE AFTER HE WAS ARRESTED THE PACE OF THE INTERNAL INVESTIGATION HAD BEEN SLOWED SO IT WOULDN'T INTERFERE WITH THE PROSECUTION OF THE AMESES NOW WITH MR AMES'S COOPERATION IT COULD RESULT IN FURTHER PROSECUTIONS IF IT IDENTIFIES CIA EMPLOYEES WHO AIDED HIM OR OVERLOOKED HIS CLANDESTINE COLLECTION EFFORTS THE SPY AGENCY'S ELABORATE INTERNAL SECURITY APPARATUS FAILED TO UNCOVER MR AMES'S ALLEGED SPYING FOR EIGHT YEARS DURING WHICH HE IS BELIEVED TO HAVE COMPROMISED MAJOR US SPY OPERATIONS IN RUSSIA AS PART OF THE AGREEMENT ACCORDING TO THE PEOPLE CLOSE TO THE CASE THE AMESES WILL REPATRIATE AND FORFEIT THE MONEY THAT REMAINS IN THEIR BANK ACCOUNTS IN SWITZERLAND ITALY AND COLOMBIA THE MONEY HAS BEEN UNTIL NOW BEYOND THE REACH OF US AUTHORITIES MUCH OF THE 25 MILLION MR AMES ALLEGEDLY RECEIVED FROM THE RUSSIANS HAS BEEN SPENT TO SUPPORT THE COUPLE'S LUXURIOUS LIFESTYLE WHICH FAR EXCEEDED WHAT COULD BE ACCOMMODATED ON MR AMES'S 69000AYEAR SALARY MEANWHILE THE CLINTON ADMINISTRATION IS PREPARING TO PRESS AHEAD WITH MOVES THAT WILL TIGHTEN US COUNTERINTELLIGENCE EFFORTS AND MAKE IT EASIER FOR THE GOVERNMENT TO GAIN ACCESS TO FINANCIAL RECORDS OF EMPLOYEES IN SENSITIVE POSITIONS THE 25 MILLION THE RUSSIANS ALLEGEDLY PAID MR AMES IS BY FAR THE LARGEST SPY PAYMENT EVER UNCOVERED AMONG THE CHANGES ARE 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