THE BONDS WILL BE REDEEMED AT 100 OF THE PRINCIPAL AMOUNT PLUS INTEREST FROM FEB 1 TO THE DATE OF REDEMPTION THE COMPANY SAID CHEMICAL BANK NEW YORK IS THE REDEMPTION AGENT 9404270021 940427 WHO'S NEWS GTE CORP GTE CORP STAMFORD CONN JEFFREY S RUBIN 50 YEARS OLD WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT CORPORATE PLANNING AND DEVELOPMENT AT THE TELECOMMUNICATIONS COMPANY HE HAD BEEN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF NYNEX CORP 9404270017 940427 TEXAS JOURNAL ECONOMIC FOCUS ON THE ROAD AGAIN WACO THRIVES ON MOBILE HOMES BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL WACO NEWHOME CONSTRUCTION SKYROCKETED 90 LAST YEAR IN TEXAS TO THE HIGHEST LEVEL SINCE 1986 AND ROUGHLY 40 OF THOSE DOMICILES WERE BUILT IN THIS MIDSIZE BURG ON THE BRAZOS RIVER CONFUSED THAT'S BECAUSE THE HOMES WE'RE TALKING ABOUT ARE MOBILE HOMES OR MANUFACTURED HOUSES IN INDUSTRY PARLANCE THOSE LOWCOST DENIZENS OF TRAILER PARKS AND PINE GROVES THAT ARE BANGED OUT ASSEMBLYLINE FASHION IN FACTORIES THROUGHOUT THE COUNTRY IT'S AN INDUSTRY THAT HAD SUFFERED LONGER AND MORE PROFOUNDLY THAN JUST ABOUT ANY OTHER NONOIL BUSINESS IN TEXAS BUT FINALLY FUELED BY LOW INTEREST RATES AND A RECOVERING ECONOMY IT'S STARTING TO SPRING BACK IN A BIG WAY BRINGING A SURGE IN JOBS AND SALES IT'S LOOKING REAL STRONG IN FACT IT'S LOOKING UNBELIEVABLY STRONG SAYS GAVIN RYAN VICE PRESIDENT FINANCE OF NEWCO HOMES LP A DALLASBASED RETAILER WITH 13 LOTS THROUGHOUT TEXAS JOBS TOO HAVE RISEN SHARPLY IN SEPTEMBER 1993 THE MOST RECENT MONTH FOR WHICH DETAILED FIGURES ARE AVAILABLE 3716 TEXANS WORKED IN PLANTS MAKING MOBILE HOMES OR OTHER MOBILE DWELLINGS SUCH AS CLASSROOMS UP 768 FROM THE YEAR EARLIER THOUGH THE OVERALL NUMBERS MIGHT NOT BE HUGE THE RATE OF JOB GROWTH WAS MUCH FASTER THAN IN TEXAS MANUFACTURING AS A WHOLE 78 OR IN RESIDENTIAL CONSTRUCTION 178 EXACTLY WHY THINGS HAVE TAKEN SO LONG TO REBOUND IN TEXAS IS ONE OF THE PECULIARITIES OF THE MANUFACTUREDHOUSING BUSINESS AFTER PEAKING AT 42292 IN 1984 WHEN OILFIELD WORKERS AND OTHERS FLOCKING TO TEXAS NEEDED A ROOF OVER THEIR HEADS NOW SALES OF NEW TRAILERS WENT INTO AN OILBUSTINSPIRED SWOON COMPOUNDING THE PROBLEM WAS THE FACT THAT MANY RECENT BUYERS SIMPLY TURNED THEIR KEYS OVER TO THE BANK FLOODING THE MARKET WITH REPOSSESSED BUT RELATIVELY NEW HOMES THERE WERE 15000 HOMES IN INVENTORY IN TEXAS JUST SITTING IN FIELDS SAYS MR RYAN THERE WERE JUST CARAVANS OF REPOS GOING TO AUCTION IN TENNESSEE OR MISSOURI THUS A BUYER COULD PICK UP AN ALMOSTNEW SINGLEWIDE HOME FOR AROUND 11000 FOUR YEARS AGO COMPARED WITH 22000 FOR A NEW ONE LEAVING MANUFACTURERS WITH LITTLE POSSIBILITY OF COMPETING BUT WITH REPOSSESSED INVENTORIES WORKED DOWN THE GAP IS MUCH NARROWER AND PEOPLE ARE MOVING BACK INTO THE NEWHOME MARKET MR RYAN SAYS NOW EVEN THOUGH INTEREST RATES ARE ON THE RISE PEOPLE IN THE INDUSTRY THINK MANUFACTUREDHOUSING SALES WILL CONTINUE TO SOAR EVEN IF THE MARKET FOR TRADITIONAL NEW HOMES FALTERS THAT'S BECAUSE FOR MANUFACTURED HOMES DEMAND IS DRIVEN MOSTLY BY WHETHER PEOPLE HAVE JOBS RATHER THAN BY INTEREST RATES WHICH EVEN IN THE BEST OF TIMES ARE HIGHER THAN THOSE FOR TRADITIONAL HOMES ALL OF THAT IS ESPECIALLY GOOD NEWS FOR WACO THE MANUFACTUREDHOUSING CAPITAL OF TEXAS DURING THE BOOM THIS 100000STRONG COMMUNITY HAD MORE PLANTS THAN ANY OTHER CITY BESIDES ELKHART IND THE INDUSTRY'S BIRTHPLACE SAY LOCALS HERE BUT THE BUST WHITTLED THE NUMBER TO JUST ONE ONLY RECENTLY HAVE THE PLANTS BEEN COMING BACK ON LINE AND SEVEN ARE IN OPERATION NOW ELKHART BY CONTRAST HAS 31 PLANTS ROUGHLY 1500 WORKERS ARE EMPLOYED IN THE BUSINESS HERE UNLIKE EARLIER TIMES WHEN LOTS OF INEXPERIENCED OR MARGINALLY FUNDED MANUFACTURERS SET UP SHOP TO TAKE ADVANTAGE OF THE BOOM THE INDUSTRY HERE NOW IS DOMINATED BY LARGE WELLKNOWN COMPANIES SUCH AS FLEETWOOD ENTERPRISES INC OF RIVERSIDE CALIF BOBBIE HILL ENFORCEMENT MANAGER FOR BUILDINGS AND ACCESSIBILITIES FOR THE TEXAS DEPARTMENT OF LICENSING AND REGULATIONS SAYS THE CHANGE HAS IMPROVED THE OVERALL QUALITY OF THE PRODUCT WHEN THE INDUSTRY WENT DOWN THAT'S WHEN WE GOT RID OF SOME OF OUR FLYBYNIGHTERS SHE SAYS ONE RECENT ARRIVAL IS PATRIOT HOMES INC BASED IN ELKHART WHICH HAS OPENED TWO PLANTS HERE IN THE PAST TWO YEARS SAM WEIDNER PATRIOT'S PRESIDENT SAYS HE OPENED THE PLANTS TO TAKE ADVANTAGE OF THE BOOMING MARKET IN TEXAS SHIPPING HOUSES FROM HIS FACTORIES IN ELKHART WOULD HAVE ADDED TOO MUCH TO THE COST A STROLL THROUGH THE PATRIOT FACILITIES WHICH EMPLOY ABOUT 250 WORKERS SHOWS AN UNEXPECTED ECONOMIC BENEFIT A LARGE PORTION OF THE HAMMERING SAWING AND ASSEMBLING IS DONE BY WOMEN AND MINORITY WORKERS WHO CAME INTO THE BUSINESS WITHOUT ANY CONSTRUCTION EXPERIENCE AND THEREFORE PROBABLY WOULDN'T BE ABLE TO TAKE ADVANTAGE OF THE HIRING IN RESIDENTIAL CONSTRUCTION IT'S ALMOST EASIER TO TEACH SOMEONE WHO'S UNTRAINED THAN SOMEONE WHO THINKS THEY KNOW WHAT THEY'RE DOING EXPLAINS MR WEIDNER GOING DOWNTOWN WACO'S DOWNATTHEHEELS DOWNTOWN MAY SOON GET A NEW LEASE ON LIFE STRUGGLING WITH A DOWNTOWN OFFICEVACANCY RATE ESTIMATED AS HIGH AS 50 WACO HAS WON A PRELIMINARY BATTLE IN ITS EFFORT TO GET THE STATE OF TEXAS TO BUY THE OLD RALEIGH HOTEL BUILDING TO HOUSE SOME 400 STATE WORKERS CURRENTLY WORKING IN SCATTERED OFFICES AROUND TOWN YESTERDAY THE STAFF OF THE GENERAL SERVICES COMMISSION RECOMMENDED THAT THE STATE SPEND ABOUT 5 MILLION TO BUY AND RENOVATE THE OLD BUILDING WHICH HAS SAT EMPTY FOR THE PAST 12 YEARS JOHN POULAND EXECUTIVE DIRECTOR OF THE COMMISSION ESTIMATES THAT THE STATE COULD SAVE BETWEEN 30000 AND 50000 A YEAR OVER CURRENT LEASE COSTS AND EVENTUALLY OWN THE BUILDING TO BOOT BUT IT ISN'T A DONE DEAL COMMISSION MEMBERS DELAYED A VOTE YESTERDAY AFTER OWNERS OF A COMPETING SITE IN WACO THE EXECUTIVE PLAZA WEST OF TOWN ARGUED THAT THEIR BID WAS SUPERIOR AND THAT THE DOWNTOWN SITE IS IN A HIGH CRIME ZONE WACO IS ALSO ANGLING TO HAVE THE DEPARTMENT OF VETERANS AFFAIRS PICK A DOWNTOWN SITE FOR A NEW REGIONAL OFFICE THE DECISION EXPECTED WITHIN A MONTH COULD RESULT IN SOME 500 ADDITIONAL WORKERS MOVING DOWNTOWN 9404270015 940427 MARKETING & MEDIA VIACOM SETS A DEAL WITH COLOSSAL PICTURES FOR SERIES AND MOVIES NEW YORK VIACOM INC HAS SIGNED COLOSSAL PICTURES WHICH SPECIALIZES IN ANIMATED AND COMPUTERGENERATED PRODUCTIONS TO AN EXCLUSIVE DEAL TO DEVELOP AND PRODUCE NETWORK FIRSTRUN SYNDICATION AND CABLETELEVISION SERIES MOVIES AND SPECIALS THE TWO COMPANIES HAVE WORKED TOGETHER IN THE PAST ON MTV'S LIQUID TELEVISION SERIES A MAGAZINE OF ANIMATED SHORT FEATURES THAT SPAWNED MTV'S POPULAR AND OCCASIONALLY CONTROVERSIAL CARTOON BEAVIS & BUTTHEAD MTV IS A UNIT OF VIACOM VIACOM EXECUTIVES DECLINED TO DISCUSS TERMS OF THE DEAL WHICH RUNS FOR SEVERAL YEARS THE AGREEMENT ALSO GIVES VIACOM RIGHTS OF FIRST REFUSAL FOR ANY COLOSSAL FEATUREFILM PROJECTS IN ADDITION THE TWO WILL WORK ON DIRECTTOVIDEO PROJECTS AND DEVELOP PRODUCTS FOR NEW MEDIA THE FIRST PROJECT THAT THE TWO COMPANIES HAVE IN THE WORKS IS A PILOT FOR A TV SERIES CALLED ELECTRONIC HIGHWAY A WEEKLY MULTIMEDIA LOOK AT POP CULTURE BEING PRODUCED JOINTLY WITH FORMER PARAMOUNT PICTURES CHAIRMAN BRANDON TARTIKOFF'S MOVING TARGET PRODUCTIONS SAN FRANCISCOBASED COLOSSAL'S CREDITS RANGE WIDELY FROM MUSIC VIDEOS FOR PETER GABRIEL TO SPECIALEFFECTS WORK ON MOVIES SUCH AS TOP GUN THE COMPANY HAS ALSO WORKED ON SIMULATED THEMEPARK RIDES TV ADS AND TVNETWORK LOGOS AND IS WORKING ON INTERACTIVE CDROM TITLES FOR BRODERBUND SOFTWARE INC AMONG ITS TV CREDITS COLOSSAL HELPED CREATE A REALTIME ANIMATED CARTOON CHARACTER MOXIE FOR TURNER BROADCASTING SYSTEM INC'S CARTOON CHANNEL TRADITIONAL ANIMATION IS FILMED IN ADVANCE VIACOM WON CONTROL OF PARAMOUNT COMMUNICATIONS INC IN MARCH AFTER A PROTRACTED BATTLE WITH QVC INC 9404270013 940427 CREDIT MARKETS PRICES OF TREASURYS MOVE MODERATELY HIGHER AIDED BY SOLID BIDDING AT 2YEAR NOTE AUCTION BY THOMAS D LAURICELLA AND LAUREN YOUNG SPECIAL TO THE WALL STREET JOURNAL NEW YORK BOLSTERED BY SOLID BIDDING AT THE GOVERNMENT'S AUCTION OF NEW TWOYEAR NOTES PRICES OF US TREASURY SECURITIES MOVED MODERATELY HIGHER THE PRICE OF THE BENCHMARK 30YEAR TREASURY ROSE NEARLY 5/8 POINT OR NEARLY 625 FOR A BOND WITH A 1000 FACE VALUE TO 89 14/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE DROPPED TO 71 FROM 715 ON MONDAY WITH YESTERDAY'S GAINS THE MARKET EXTENDED ITS REBOUND FROM A DOWNDRAFT OF NEARLY THREE MONTHS BUT TRADERS WARNED THAT THE MARKET FACES SIGNIFICANT CHALLENGES AND SOME SAID PRICES MAY BE APPROACHING NEARTERM HIGHS THE BULK OF YESTERDAY'S ACTIVITY CENTERED ON THE TREASURY'S 17 BILLION AUCTION OF NEW TWOYEAR NOTES THE TREASURY AWARDED THE TWOYEAR NOTES AT A YIELD OF 559 BELOW MARKET EXPECTATIONS THE COUPON WAS SET AT 5 1/2 THE AUCTION WENT PRETTY WELL SAID JERRY ZUKOWSKI ECONOMIST AT PAINEWEBBER INC MOST OF THE BIDDING WAS ATTRIBUTED TO DEALERS BUYING TO COVER SPECULATIVE POSITIONS BUT AS THE DAY WORE ON TRADERS REPORTED BETTER BUYING FROM INSTITUTIONAL INVESTORS DEALERS SAID THAT INVESTORS WHO WERE DEFENSIVELY POSITIONED IN CASH OR SHORTTERM PRODUCTS DECIDED TO PUT SOME OF THAT MONEY TO WORK OVER THE LAST COUPLE OF MONTHS MONEY HAD BEEN PILING UP ON THE SIDELINES SAID LAWRENCE LEUZZI HEAD OF FIXED INCOME AT SG WARBURG SOME OF THAT MONEY CAME INTO THE MARKET AND SOME OF THAT WAS EXHIBITED IN THE TWOYEAR NOTE AUCTION NONCOMPETITIVE BIDS WHICH TYPICALLY REFLECT INTEREST FROM SMALLER INVESTORS OUTSIDE THE WALL STREET COMMUNITY WERE ON THE HIGH SIDE AT 139 BILLION AT YESTERDAY'S AUCTION ANALYSTS SAID SMALL INVESTORS ARE BEING DRAWN BACK INTO THE BOND MARKET BY THE HIGHER YIELDS PRODUCED BY THE RECENT SELLOFF THE BIDTOCOVER RATIO WHICH IS A MEASURE OF DEMAND COMPARING THE NUMBER OF BIDS RECEIVED WITH THOSE ACCEPTED WAS ABOUT AVERAGE AT 27TO1 LATE YESTERDAY THE WHENISSUED TWOYEAR NOTE YIELDED 559 COMPARED WITH 563 MONDAY ALTHOUGH BOND PRICES ENDED HIGHER THE MARKET STUMBLED AT MIDMORNING IN RESPONSE TO STRONGERTHANEXPECTED ECONOMIC NEWS THE CONFERENCE BOARD SAID ITS CONSUMERCONFIDENCE INDEX JUMPED TO 917 IN MARCH FROM 867 IN FEBRUARY THAT TOOK PEOPLE BY SURPRISE SAID PAINEWEBBER'S MR ZUKOWSKI PEOPLE WERE EXPECTING A STEADY READING OR A SLIGHT DECLINE SO IT WAS A REAL SUPRISE COMPARED TO EXPECTATIONS THE DECLINES WERE SHORTLIVED HOWEVER AND THE MARKET RECOVERED TO END NEAR ITS HIGHS SOME IN THE MARKET WONDERED IF THE BOND MARKET MIGHT BE NEARING A NEARTERM TOP AFTER A WEEK OF RALLYING IN THE ABSENCE OF INFORMATION THAT SHOWS THE ECONOMY IS WEAKENING OR THE FED MIGHT NOT HAVE TO TIGHTEN THE MARKET MAY HAVE RUN ITS COURSE AND MAY BE GROPING FOR THE TOP END OF A TRADING RANGE SAID MR LEUZZI OF WARBURG MR LEUZZI ARGUED THAT THE BOND MARKET'S RECENT GAINS WERE SIMPLY A REBOUND AFTER PRICES OVERSHOT ON THE WAY DOWN THAT CORRECTION MAY BE CLOSE TO RUNNING ITS COURSE HE SAID IN COMING SESSIONS THE MARKET WILL HAVE TO WEATHER A NUMBER OF ECONOMIC REPORTS AND MORE NEW ISSUANCE TOMORROW TRADERS WILL HAVE TO WEED THROUGH REPORTS ON DURABLEGOODS ORDERS WEEKLY JOBLESS CLAIMS AND FIRSTQUARTER GROSS DOMESTIC PRODUCT MOST TRADERS IN THE BOND MARKET ALONG WITH THOSE IN OTHER FINANCIAL MARKETS HAVE TODAY OFF AS A TRIBUTE TO THE LATE PRESIDENT RICHARD NIXON THE COMMERCE DEPARTMENT'S REPORT ON MARCH DURABLEGOODS ORDERS HAD ORIGINALLY BEEN SCHEDULED TO BE RELEASED TODAY THE GDP REPORT IS LIKELY TO BE THE MARKET'S PRIMARY FOCUS TOMORROW EXPECTATIONS CALL FOR A SUPPORTIVE SET OF FIGURES FOR THE BOND MARKET WITH ESTIMATES CENTERING ON ABOUT A 34 RATE OF GROWTH FOR THE FIRST THREE MONTHS OF THE YEAR JUST TWO WEEKS AGO MANY ECONOMISTS WERE EXPECTING GROWTH TO BE CLOSER TO 4 BUT WITH EXPECTATIONS HAVING SHIFTED SO DRAMATICALLY THE RISK MAY NOW BE THAT THE MARKET IS MORE VULNERABLE TO A STRONG GDP REPORT PLAYERS SAID THE MARKET IS IN THE SITUATION WHERE GDP IS GOING TO HAVE TO BE 3 OR LOWER FOR IT TO RALLY MR ZUKOWSKI SAID ALSO TOMORROW THE TREASURY WILL BE AUCTIONING 11 BILLION IN NEW FIVEYEAR NOTES IN LATE TRADING YESTERDAY THE WHENISSUED FIVEYEAR NOTE YIELDED 645 ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED MAY 2 AND MATURE APRIL 30 1996 NEW ISSUANCE CONTINUED TO TRICKLE INTO THE CORPORATEBOND MARKET YESTERDAY WITH SOUTHTRUST CORP AND TEXAS UTILITIES ELECTRIC CO A UNIT OF TEXAS UTILITIES CO SELLING DEBT NEARLY 3 BILLION OF DEBT WAS SOLD MAINLY FROM THE FEDERAL FARM CREDIT BANKS FUNDING CORP IN THE JUNKBOND MARKET THE TERMS OF YET ANOTHER OFFERING HAVE BEEN ALTERED TO MEET INVESTOR DEMAND PETRO PSC PROPERTIES LP A TRUCKSTOP OPERATOR BASED IN EL PASO TEXAS CHANGED THE TERMS AND SIZE OF ITS FIRST JUNKBOND OFFERING A SYNDICATE OFFICIAL SAID PETRO PSC'S 10YEAR JUNKBOND DEAL ORIGINALLY WAS SLATED TO BE 140 MILLION WITH A YIELD IN THE 11 3/4 RANGE NOW PETRO PSC IS EXPECTED TO SELL 130 MILLION OF EIGHTYEAR SENIOR NOTES WITH A 12 1/4 TO 12 1/2 YIELD A SYNDICATE OFFICIAL SAID THE NOTES WHICH ARE NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB3 BY MOODY'S AND SINGLEB BY S&P AND WILL BE SOLD THROUGH LEAD MANAGER ALEX BROWN & SONS NO TIMING FOR THE SALE OF THE NOTES HAS BEEN SET MEANWHILE TRADING IN THE INVESTMENTGRADE MARKET WAS LIGHT WITH PRICES UP SLIGHTLY FOLLOWING TREASURYS AND YIELD SPREADSOR THE MARGIN BETWEEN YIELDS OF CORPORATE AND TREASURY BONDSUNCHANGED IN THE JUNKBOND MARKET TRADING WAS ALSO LIGHT WITH PRICES OF MANY JUNK BONDS UP A 1/2 POINT STANDARD & POOR'S RATINGS GROUP PLACED ITS RATINGS OF TENNECO INC AND RELATED ENTITIES ON CREDITWATCH WITH POSITIVE IMPLICATIONS AFFECTING ABOUT 7 BILLION OF RATED DEBT THE REVIEW FOLLOWS TENNECO'S PLANS TO OFFER 35 OF THE ITS CASE FARM AND CONSTRUCTION EQUIPMENT DIVISION THROUGH AN INITIAL PUBLIC OFFERING S&P SAID IN A NEWS RELEASE TENNECO'S SENIOR DEBT IS RATED TRIPLEBMINUS BY S&P NEW ISSUER SOUTHTRUST A BIRMINGHAM ALABASED BANKHOLDING COMPANY SOLD 100 MILLION OF 10YEAR 7625 COUPON SUBORDINATED NOTES PRICED AT 99592 TO YIELD 7684 TEXAS UTILITIES ELECTRIC SOLD 300 MILLION OF FIVEYEAR FLOATINGRATE FIRST MORTGAGE NOTES AT 99889 TO YIELD THE LONDON INTERBANK OFFERED BANK RATE PLUS 40 BASIS POINTS THE MUNICIPALBOND MARKET WELCOMED MORE THAN 1 BILLION OF NEW SUPPLY ILLUSTRATING A BIG IMPROVEMENT IN MARKET SENTIMENT OFFERINGS INCLUDED WASHINGTON STATE'S 335 MILLION SERIES 1994 GENERALOBLIGATION IMPROVEMENT BONDS A LEHMAN BROTHERS GROUP WON 300 MILLION OF THE BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 586703 YIELDS RANGE FROM 34 IN 1995 TO 61 IN 201719 THE REMAINING PORTION 35 MILLION OF MOTORVEHICLE FUELTAX BONDS WAS WON BY A MERRILL LYNCH GROUP WITH A TIC BID OF 5893 THEY HAVE YIELDS THAT RANGE FROM 325 IN 1995 TO 61 IN 2019 MORTGAGEBACKED SECURITIES WERE MODERATELY HIGHER SLIGHTLY UNDERPERFORMING TREASURYS AMID LACK OF RETAIL BUYING AND SELLING OF MORTGAGE SECURITIES BY MORTGAGE BANKERS GINNIE MAE 8S FOR MAY DELIVERY WERE UP 1/32 AT 100 15/32 FREDDIE MAC GOLD 8S FOR MAY WERE UP 2/32 AT 100 26/32 FANNIE MAE 8S FOR MAY WERE UP 2/32 AT 100 21/32 AND THE TREASURY'S 5 7/8 10YEAR NOTE WERE UP 5/32 AT 93 8/32 ELSEWHERE THIS SESSION TWO DEALS WERE PRICED IN THE ASSETBACKED MARKET NAVISTAR FINANCIAL CORP A DIVISION OF NAVISTAR INTERNATIONAL TRANSPORTION CORP OFFERED 280 MILLION IN ASSETBACKED CERTIFICATES BACKED BY RETAILINSTALLMENT SALES CONTRACTS FOR NEW AND USED TRUCKS BUSES AND TRAILERS THE THREEPART TRANSACTION WAS LED BY CHEMICAL SECURITIES THE LARGEST CLASS 1806 MILLION IN FIXEDRATE NOTES WAS PRICED WITH A 593 COUPON AT 99 31/32 TO YIELD 6023 A 55BASISPOINT SPREAD ABOVE THE TREASURY'S 4 NOTE OF JANUARY 1996 CHARMING SHOPPES INC OFFERED 200 MILLION IN CERTIFICATES BACKED BY CREDIT CARDS USED IN THE RETAILER'S FASHION BUG AND FASHION BUG PLUS STORES CHARMING SHOPPES IS BASED IN THE PHILADELPHIA AREA THE CERTIFICATES WERE PRICED BY UNDERWRITERS LED BY JP MORGAN SECURITIES WITH A 7 COUPON AT 99964 TO YIELD 701 A 55BASISPOINT SPREAD ABOVE THE TREASURY'S WHENISSUED FIVEYEAR NOTE 9404270012 940427 WORK & FAMILY BY SUE SHELLENBARGER THE LABOR DEPARTMENT OPENS THE DOOR TO A NANNYGATE SOLUTION THEN SLAMS IT SHUT MANY PEOPLE USE ILLEGAL ALIENS AS NANNIES PARTLY BECAUSE THERE ARE FEW US CITIZENS WILLING AND QUALIFIED TO DO THE JOB IT IS ALMOST IMPOSSIBLE FOR FOREIGNBORN CHILDCARE WORKERS TO GET WORK PERMITS BECAUSE THE US CLASSIFIES THEM AS UNSKILLED LABORERS RELEGATING THEM TO A WAITING LIST MORE THAN A DECADE LONG THE ISSUE DERAILED TWO CLINTON ADMINISTRATION CANDIDATES FOR ATTORNEY GENERAL LAST YEAR WHEN KIMBA WOOD AND ZOE BAIRD WERE FOUND TO HAVE EMPLOYED ILLEGAL IMMIGRANTS FOR CHILD CARE IN A MOVE THAT SURPRISED IMMIGRATION LAWYERS THE LABOR DEPARTMENT EARLIER THIS MONTH CREATED A JOB CLASSIFICATION FOR NANNIES WITH TWO YEARS' FORMAL TRAINING PLUS CHILDCARE EXPERIENCE IT WOULD HAVE GIVEN NANNIES SKILLEDWORKER STATUS AND CUT THE TIME REQUIRED TO GAIN WORKING PAPERS TO ABOUT A YEAR I WAS VERY EXCITED SAYS PRISCILLA LABOVITZ A WASHINGTON DC IMMIGRATION LAWYER WHO APPLIED FOR THE CHANGE ON BEHALF OF A CLIENT ADDING THAT IT WOULD HAVE OPENED THE FLOODGATES OF PENTUP DEMAND FOR THOUSANDS OF FOREIGNBORN NANNIES BUT JUST A WEEK LATER THE DEPARTMENT REVERSED ITSELF IN A LETTER AN OFFICIAL OF THE DEPARTMENT'S OCCUPATIONALANALYSIS CENTER SAID THE MOVE WAS BASED ON INSUFFICIENT FACTFINDING AND RESEARCH A DEPARTMENT SPOKESWOMAN SAYS THE CHANGE WAS A MISUSE OF A TEMPORARY OCCUPATIONAL CODE INTENDED TO ONLY COVER ONE OR A FEW WORKERS THE DEPARTMENT IS CONDUCTING A BROAD REVIEW OF JOB CLASSIFICATIONS AND MAY UPDATE ITS DESCRIPTION OF CHILDCARE WORKERS AS PART OF THAT PROJECT THE SPOKESWOMAN SAYS CHILDCARE ADVOCATES WERE OUTRAGED I WOULD LIKE TO KNOW IN WHOSE INTEREST THE DEPARTMENT REVERSED ITSELF SAYS BARBARA LUKAS AN INSTRUCTOR WHO HELPED SET UP A TWOYEAR NANNYTRAINING PROGRAM AT MORAINE PARK TECHNICAL COLLEGE FOND DU LAC WIS NEARLY 400 FAMILIES WERE TRYING TO HIRE ITS SIX GRADUATES LAST YEAR IT WAS CERTAINLY NOT IN THE INTERESTS OF FAMILIES AND CHILDREN SHE SAYS WARREN LEIDEN EXECUTIVE DIRECTOR OF THE AMERICAN IMMIGRATION LAWYERS ASSOCIATION AGREES THAT A REAL OMISSION IN THE LAW NOW IS A PROMPT LAWFUL WAY FOR FAMILIES TO HIRE A HOMECARE WORKER BUT WHILE NANNIES SHOULDN'T BE CLASSIFIED AS UNSKILLED WORKERS A LOT OF CORPORATE EXECUTIVES WOULD HAVE A HARD TIME PERFORMING THIS JOB HE SAYS THE ADMINISTRATION IS RELUCTANT TO DO ANYTHING THAT WOULD BE PERCEIVED AS OPENING WIDER THE IMMIGRATION GATES TWO MAGAZINES STRUGGLE TO TAP A TOUGH MARKET CONSUMERS WHO CARE FOR FRAIL ELDERS THOUGH ELDER CAREGIVERS ARE EXPECTED TO INCREASE THEY ARE HARD TO REACH MANY DON'T THINK OF THEMSELVES AS NEEDING HELP OR EVEN IDENTIFY THEMSELVES AS CAREGIVERS BUT ELDER CAREGIVERS MAKE A LOT OF BUYING DECISIONS SAYS CAROL ABAYA PUBLISHER OF SANDWICH GENERATION MARLBORO NJ A TWOYEAROLD QUARTERLY FOR THE ELDERCARE MARKET IT OFFERS TIPS ON MANAGING MEDICAL BILLS AVOIDING SIBLING FIGHTS AND OTHER TOPICS AND HAS A PAID CIRCULATION OF ABOUT 2000 AND A PASSALONG READERSHIP OF 40000 THROUGH HOSPITALS DOCTORS' OFFICES AND THE LIKE A MAGAZINE WITH SIMILAR CONTENT ANSWERS HAS COME OUT FOUR TIMES IN THE PAST YEAR MOST RECENTLY IN DECEMBER AN ISSUE IS PLANNED FOR LATE SUMMER SAYS SUSAN KELLER THE CORTE MADERA CALIF PUBLISHER WHO IS TRYING TO RAISE MONEY TO GO BIMONTHLY ANSWERS SPORTS DRAWINGS OF ACTIVE OLD PEOPLE COUNTERING NEGATIVE STEREOTYPES OF ELDERS AS SOMEONE IN A WHEELCHAIR WHO LOOKS LIKE THEY'RE FALLING OFF A CLIFF SHE SAYS THE MAGAZINE HAS 3000 SUBSCRIBERS AND DISTRIBUTES ABOUT 50000 COPIES NATIONWIDE MAGAZINE CONSULTANTS ARE SKEPTICAL WHERE ARE YOU GOING TO GET THE ADVERTISING SAYS MARTIN S WALKER OF WALKER COMMUNICATIONS NEW YORK ADDING THAT MOST MAKERS OF MEDICAL HEALTH AND BEAUTY AIDS SEEK MASSMARKET PUBLICATIONS BUT BOTH PUBLISHERS SAY DEMOGRAPHICS WEIGH IN THEIR FAVOR MS ABAYA IS EXTREMELY OPTIMISTIC BASED ON READER RESPONSE AND RAPID PROJECTED GROWTH IN THE AGE 85ANDOVER POPULATION SHE SAYS EVERY ONE OF THOSE OLDER PEOPLE HAS A SANDWICH GENERATIONER SHE SAYS THE WORLD BANK'S BROAD SCHEDULING EXPERIMENT SPARKS HOT DEMAND AN OFFER OF A COMPRESSED WORK WEEK FOR NINE DAYS EXTENDING THE WORK DAY AND THEN TAKING OFF THE TENTH A FRIDAY DREW 1500 TAKERS OR ONESIXTH OF THE BANK'S WASHINGTON DC EMPLOYEES WE COULD HAVE OVER HALF THE BANK ON IT IF A CEILING HADN'T BEEN PLACED ON PARTICIPATION SAYS BRIAN DONNOLLEY THE BANK'S MANAGER PROGRAM SUPPORT IT'S PART OF A LARGER WORKFAMILY EFFORT TO LURE MORE SKILLED WOMEN AS EMPLOYEES REDUCE STRESS AND EASE SINGLE PARENTS' CONFLICTS PEOPLE ON COMPRESSED WORK SCHEDULES LIKED THEM BETTER THAN THE WORKERS LEFT TO COVER WE'RE LEARNING HOW IMPORTANT BACKUP TRAINING IS INCLUDING ARRANGING COVERAGE AND VOICEMAIL MESSAGES FOR DAYS OFF MR DONNOLLEY SAYS NEVERTHELESS AFTER AN EVALUATION NOTED THAT MORALE HAD IMPROVED ABSENTEEISM WAS DOWN A LITTLE AND PRODUCTIVITY HADN'T SUFFERED THE BANK IS CONTINUING THE PILOT PROGRAM FOR FOUR MORE MONTHS AN EYEPOPPING 27 MILLION PREGNANCYBIAS AWARD BY A CALIFORNIA JURY BELIEVED TO BE THE LARGEST OF ITS KIND IS TRIMMED BY 850000 AFTER A STATE COURT JUDGE RULED IT WAS BASED ON INSUFFICIENT EVIDENCE LANA AMBRUSTER WHO WAS FIRED BY A CALIFORNIA INSURER WHILE PREGNANT UNFAIRLY AROUSED JURORS' SYMPATHY BY CONSTANTLY WEEPING AND RELATING EVERY PROBLEM SHE HAD IN HER LIFE TO HER TERMINATION WRITES JUDGE LEONARD SPRINKLES MOTOROLA PLUGS ITS UBIQUITOUS PAGER AS A REMEDY FOR FRAZZLED DUALCAREER FAMILIES A KIDS' BROCHURE SHOWS CHILDREN UPSET BY TUMMY ACHES MISSED BUSES AND RESCHEDULED RECITALS SOOTHED BY BEEPING THEIR WORKING PARENTS 9404270010 940427 ABREAST OF THE MARKET STOCKS MIXED ON VARIED EARNINGS PROFITTAKING AFTER SURGE MONDAY BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCK PRICES FINISHED MIXED AS THE EARNINGS NEWS VARIED AND INVESTORS TOOK PROFITS FOLLOWING MONDAY'S SURGE THE DOW JONES INDUSTRIAL AVERAGE WAS MODESTLY LOWER MUCH OF THE DAY BEFORE FINISHING WITH A LOSS OF 624 OR 017 TO 369954 IT HAD SURGED 5710 POINTS ON MONDAY TO TOP 3700 FOR THE FIRST TIME IN NEARLY A MONTH BROADER INDEXES THAT TRACK MOSTLY NEW YORK STOCK EXCHANGELISTED ISSUES ALSO LOST GROUND YESTERDAY BUT GAINERS LED LOSERS BY 1268 TO 913 ON THE EXCHANGE THE NASDAQ STOCK MARKET MANAGED A GAIN WE DIDN'T GET A FOLLOWTHROUGH WITH ANYTHING DRAMATIC ON THE UPSIDE WITH EARNINGS SAID THOM R BROWN MANAGING DIRECTOR AT RUTHERFORD BROWN & CATHERWOOD GOOD REPORTS FROM DUPONT AND BOEING HAD HELPED LIFT THE MARKET ON MONDAY YESTERDAY ALTHOUGH WALT DISNEY JUMPED 1 1/8 TO 43 1/2 AFTER A SOLID EARNINGS REPORT AND EASTMAN KODAK INCHED UP 1/8 TO 41 3/4 ON A FLAT READING CHEVRON LOST 1 3/4 TO 90 7/8 AND UNUM A BIG INSURER TUMBLED 4 1/4 TO 50 1/4 BOTH ON DOWNBEAT PROFIT NEWS ASIDE FROM SUCH FUNDAMENTAL FACTORS SEVERAL TECHNICAL ANALYSTS SAID THEY THINK THE RECENT RALLY MAY HAVE RUN ITS COURSE FOR NOW THE INDUSTRIAL AVERAGE IS ABOUT 150 POINTS OR 42 ABOVE THE INTRADAY LOW IT HIT EARLY THIS MONTH AND MAY BE DUE FOR SOME CORRECTION INVESTORS HAD ADDITIONAL REASONS TO LOCK IN GAINS THE MARKETS WILL BE CLOSED TODAY TO HONOR FORMER PRESIDENT RICHARD M NIXON WHO DIED FRIDAY TOMORROW MORNING INVESTORS WILL FACE A KEY READING ON FIRSTQUARTER GROSS DOMESTIC PRODUCT SHORTTERM INVESTORS OFTEN TRIM THEIR STOCKHOLDINGS AHEAD OF MARKET CLOSURES AND MAJOR ECONOMIC REPORTS THE STANDARD & POOR'S 500 STOCK INDEX SLIPPED 084 OR 019 TO 45187 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EASED 006 OR 002 TO 25041 AND THE DOW JONES EQUITY MARKET INDEX DROPPED 076 OR 018 TO 42818 THE NASDAQ COMPOSITE INDEX THOUGH ADDED 341 OR 047 TO 73421 AIDED BY TECHNOLOGY COMMUNICATIONS AND BIOTECHNOLOGY ISSUES THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ADVANCED 223 OR 051 TO 43820 WALT DISNEY ROSE AFTER IT POSTED A PROFIT OF 45 CENTS A SHARE FOR ITS SECOND QUARTER ENDED MARCH 31 UP FROM 39 CENTS A YEAR AGO ANALYSTS HAD EXPECTED THE ENTERTAINMENT CONCERN TO EARN ABOUT 42 CENTS A SHARE ACCORDING TO INSTITUTIONAL BROKERS ESTIMATE SYSTEM EASTMAN KODAK EDGED UP AFTER NEWS THAT ITS EARNINGS FROM CONTINUING OPERATIONS WERE FLAT AT 29 CENTS A SHARE IN THE FIRST QUARTER INVESTORS ARE LOOKING FORWARD TO A TUESDAY MEETING AT WHICH THE ROCHESTER NY COMPANY WILL DISCUSS ITS STRATEGY TO BOOST BUSINESS CHEVRON LOST GROUND AFTER IT REPORTED FIRSTQUARTER EARNINGS OF 119 A SHARE WELL BELOW THE 154 IT POSTED A YEAR EARLIER BOTH PERIODS INCLUDED MODEST CHARGES UNUM SLUMPED ON NEWS THAT ITS NET INCOME SLIPPED TO 102 A SHARE IN THE FIRST QUARTER FROM 108 A YEAR AGO EXCLUDING CHARGES FOR AN ACCOUNTING ADJUSTMENT AND FOR A MERGER TOBACCORELATED STOCKS ADVANCED AFTER BA T INDUSTRIES AGREED TO ACQUIRE AMERICAN BRANDS' US TOBACCO OPERATIONS FOR 1 BILLION SHARES OF THE OLD GREENWICH CONN COMPANY JUMPED 2 7/8 TO 34 5/8 PHILIP MORRIS ADDED 2 TO 54 1/4 RJR NABISCO INCREASED 3/8 TO 6 7/8 STRATUS COMPUTER RALLIED 4 5/8 TO 28 THE COMPANY REPORTED FIRSTQUARTER NET INCOME OF 46 CENTS A SHARE UP FROM 37 CENTS LAST YEAR SEPARATELY IT PLANS TO BUY BACK AS MANY AS 12 MILLION SHARES OR ABOUT 5 OF ITS SHARES OUTSTANDING CRAY RESEARCH THOUGH PLUNGED 4 1/4 TO 21 3/8 THE COMPUTER SYSTEMS CONCERN REPORTED FIRSTQUARTER EARNINGS OF 84 CENTS A SHARE THAT WAS UP FROM 58 CENTS A YEAR AGO BUT BELOW THE 87CENT MEAN ESTIMATE OF ANALYSTS SURVEYED BY IBES CASINO STOCKS ROSE ON NEWS THAT PRESIDENT CLINTON HAS DECIDED AGAINST NEW TAXES TO FINANCE PLANNED REFORMS IN THE WELFARE SYSTEM A GAMBLING TAX HAD BEEN CONSIDERED CIRCUS CIRCUS ADDED 1 3/4 TO 30 1/8 PROMUS INCREASED 2 1/2 TO 36 5/8 US SHOE WAS OFF 1/4 TO 17 1/4 BEFORE A TRADING HALT BANNUS B HUDSON ITS CHIEF EXECUTIVE OFFICER TOLD DOW JONES THAT THE CINCINNATI RETAILER'S FIRSTQUARTER EARNINGS WERE TWICE AS HIGH AS WALL STREET ANALYSTS HAVE FORECAST HE EXPECTS TO POST EARNINGS OF MORE THAN 20 CENTS A SHARE REVERSING A YEARAGO LOSS OF 21 CENTS TRADING DIDN'T RESUME BREED TECHNOLOGIES JUMPED 4 7/8 TO 41 1/2 THE COMPANY WHICH MAKES CRASH SENSORS USED IN AUTOMOBILE AIRBAG SYSTEMS HAD A PROFIT OF 49 CENTS A SHARE IN THE THIRD QUARTER ENDED LAST MONTH ABOVE THE 38CENT MEAN IBES ESTIMATE ECKERD DROPPED 1 TO 19 1/2 AN OFFERING OF THREE MILLION SHARES OF THE DRUGSTORE COMPANY WAS MADE AT 19 A SHARE THE OFFERING SIZE WAS SLASHED FROM A PLANNED FIVE MILLION SHARES NORTHERN TELECOM INCREASED 2 TO 29 7/8 THE CANADIAN COMMUNICATIONS COMPANY REPORTED HIGHER FIRSTQUARTER NET INCOME UNION TEXAS PETROLEUM INCREASED 3/4 TO 19 1/8 THE HOUSTON OIL AND GAS COMPANY REPORTED FIRSTQUARTER EARNINGS OF 30 CENTS A SHARE FLAT WITH ITS LEVEL LAST YEAR EXCLUDING A CHARGE BUT WELL ABOVE EXPECTATIONS THE MEAN IBES ESTIMATE WAS 13 CENTS A SHARE USXUS STEEL LOST 1 1/8 TO 33 7/8 USXMARATHON SLIPPED 1/2 TO 17 1/2 AND USXDELHI SHED 1/2 TO 13 3/4 THE STEEL OPERATION REPORTED A LOSS EARNINGS DECLINED AT DELHI A NATURALGASPIPELINE BUSINESS AND PROFIT IMPROVED AT MARATHON AN OIL AND GAS EXPLORATION CONCERN THE THREE ARE UNITS OF USX CORP I DON'T THINK YESTERDAY'S 57POINT RALLY WAS THE START OF A MOVE TO NEW HIGHS I THINK IT'S PART OF A TECHNICAL REBOUND WE HAVE BEEN EXPERIENCING RICKY HARRINGTON TECHNICAL ANALYST AT INTERSTATE/JOHNSON LANE SAID 9404270009 940427 TECHNOLOGY & HEALTH CALIFORNIA DMV'S DATABASE OVERHAUL LANDS IN SCRAP HEAP PLAN WITH ERNST & YOUNG TANDEM PROVES COSTLY POLITICIANS ARE IN UPROAR BY RALPH T KING JR STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO CALIFORNIA'S DEPARTMENT OF MOTOR VEHICLES WANTED A HOTROD COMPUTER SYSTEM WHAT IT GOT INSTEAD WAS A 445 MILLION LEMON THAT NEVER GOT OUT OF THE SHOP IN 1987 THE DEPARTMENT HIRED TANDEM COMPUTERS INC AND ERNST & YOUNG TO TRADE IN ITS CREAKY 30YEAROLD SYSTEM FOR NIMBLE NEW MAINFRAMES AND MERGE ITS MASSIVE DRIVERSLICENSE AND VEHICLEREGISTRATION DATABASES DEADLINES STARTING IN 1991 CAME AND WENT COSTS SOARED AND NOW THE DEPARTMENT IS JUNKING THE PROJECT OUTRIGHT THE FIASCO CLEARLY ILLUSTRATES HOW HIGHSOUNDING PROMISES OF HIGH TECHNOLOGY FREQUENTLY FALL FAR SHORT OF REALITY AND HOW EXPENSIVE SUCH FAILURES CAN BE AND APPARENTLY THE STATE'S CONTRACTS DIDN'T REQUIRE THE COMPANIES TO MAKE GOOD ON THOSE PROMISES AND NO ONE WAS IN CHARGE IT'S A CLASSIC EXAMPLE OF A RUNAWAY PROJECT SAYS DMV DIRECTOR FRANK ZOLIN WHO WON'T SINK ANOTHER 114 MILLION AND THREE YEARS INTO IT AS ADVISED BY CUPERTINO CALIFBASED TANDEM ERNST & YOUNG THE NEW YORKBASED ACCOUNTING FIRM THAT ACTED AS THE SYSTEMS INTEGRATOR DROPPED OUT IN 1991 INSTEAD MR ZOLIN SAYS HE WILL UPGRADE THE OLD SYSTEM WITH NEW MORE BASIC SOFTWARE SACRAMENTO POLITICIANS BLASTED THE DMV AT A HEARING MONDAY SAYS STATE ASSEMBLYWOMAN VALERIE BROWN WHAT I DON'T UNDERSTAND IS WHY IT'S OK FOR TAXPAYERS TO BEAR THAT RESPONSIBILITY AND NOT TANDEM AND ERNST & YOUNG WHY DIDN'T HEADS ROLL AT DMV MR ZOLIN SAYS THE DMV DESERVES SOME OF THE BLAME BUT ADDS THAT HE HIMSELF DIDN'T JOIN THE DEPARTMENT UNTIL 1991 THE PROJECT AS CONCEIVED SEEMED TO BE STRAIGHT FORWARD IT WOULD ELIMINATE A TANGLE OF OUTDATED SOFTWARE PROGRAMS AND ALLOW THE DMV TO MEET NEW RECORDKEEPING DEMANDS MUCH MORE QUICKLY FOR EXAMPLE USING THE OLD SYSTEM THE TASK OF ADDING SOCIALSECURITY NUMBERS TO DRIVERSLICENSE FILES TOOK 28000 WORKHOURS OF PROGRAMMING USING THE NEW SYSTEM IT WOULD TAKE JUST 5000 HOURS UNFORTUNATELY SOME BUGS ELUDED THE HIRED COMPUTER WHIZZES FOR YEARS THE NEW SYSTEM COULDN'T PERFORM CERTAIN BASIC FUNCTIONS AND ITS RESPONSE TIME TO ROUTINE INQUIRIES WAS AS MUCH AS TEN TIMES SLOWER THAN THE OLD SYSTEM MERE TENTHS OF A SECOND ADD UP WHEN IT COMES TO HANDLING A MILLION OR SO TRANSACTIONS DAILY FOR THE DMV COMPUTER SLUGGISHNESS WOULD HAVE MEANT HIRING AT LEAST 80 MORE COMPUTER OPERATORS AS A RESULT SIX TANDEM CYCLONE MAINFRAMES GATHER DUST IN A STATERUN DATA CENTER AND MILLIONS OF LINES OF SOFTWARE CODE LIE DORMANT MR ZOLIN THINKS HE CAN SALVAGE SOME OF THE INVESTMENT BY FINDING OTHER THINGS FOR THE COMPUTERS TO DO BUT HE DOESN'T KNOW WHAT THAT MIGHT BE THE COMPANIES MERELY SHRUG WE BELIEVE WE HAVE MET ALL OUR OBLIGATIONS UNDER CONTRACT AND PROVIDED ADDITIONAL SUPPORT TO HELP THEM RESOLVE ANY ISSUES INCLUDING LOOKING AT ALTERNATIVES SAYS TOM WALDROP A SPOKESMAN FOR TANDEM WE WITHDREW OVER THREE YEARS AGO BY MUTUAL AGREEMENT SAYS MORT MEYERSON A SPOKESMAN FOR ERNST & YOUNG WE COULD NOT AGREE WITH THE DMV ON FUTURE DIRECTION OF THE PROJECT WE HAVE NO KNOWLEDGE OF WHAT HAPPENED NEXT MR ZOLIN SAYS THE COMPANIES SAID THEY COULD SOLVE THAT PROBLEM BUT THEY COULDN'T IT WAS LIKE HAVING A CAR BUT NOT KNOWING HOW TO DRIVE HE SAYS IN ANY EVENT MR ZOLIN'S DEPARTMENT FACES ANOTHER POTENTIAL HIGHTECH DEBACLE IN A FEW YEARS MAINTENANCE PACTS EXPIRE ON THE 40000 INTERNATIONAL BUSINESS MACHINES CORP TERMINALS LINKED TO THE AGING IBM MAINFRAME THAT IT FAILED TO REPLACE MR ZOLIN SEES THIS AS AN OPPORTUNITY TO BROADEN THE FOCUS TO THE DEPARTMENT'S ENTIRE INFORMATIONTECHNOLOGY NEEDS SO FAR NO COMPUTER COMPANIES OR CONSULTANTS HAVE ASKED TO HELP SOLVE THAT PROBLEM HE SAYS 9404270008 940427 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN CHINA ACKNOWLEDGED THAT LABOR DISPUTES INCREASED SHARPLY LAST YEAR SUPPORTING UNOFFICIAL REPORTS OF WORKER BACKLASH AS TRADITIONAL JOB SECURITY ERODES THE LABOR MINISTRY SAID 12358 DISPUTES WENT TO ARBITRATION IN 1993 UP 52 FROM 1992 IT DIDN'T SPECIFY DISPUTES THAT WERE SETTLED OR ADDRESS REPORTS OF GROWING WORK SLOWDOWNS AND STRIKES THE UNREST RESULTS FROM CHINA'S EFFORTS TO MAKE STATEOWNED COMPANIES PROFITABLE HALF ARE IN THE RED BY PUTTING WORKERS ON SHORTTERM CONTRACTS LINKING PAY TO PRODUCTIVITY AND TRIMMING OVERPADDED STAFFS THE LABOR MINISTRY SAID IT FOUND POSITIONS FOR ONLY 12 MILLION OF 54 MILLION LAIDOFF WORKERS LAST YEAR THE FIGURES EXCLUDE RURAL RESIDENTS PRESUMED TO WORK ON FARMS THOUGH ECONOMISTS SAY 100 MILLION PEASANTS HAVE NOTHING TO DO CHINA DOESN'T HAVE NATIONAL UNEMPLOYMENT INSURANCE BUT MANY CITIES ARE SETTING UP PENSION AND UNEMPLOYMENT SYSTEMS BASED ON EMPLOYER CONTRIBUTIONS THE MINISTRY SAID 532000 COMPANIES NOW PARTICIPATE IN JOBLESSBENEFITS PLANS A BUCHAREST MEDIA EXECUTIVE SAID HE WOULD LAUNCH A COMMERCIAL SATELLITETELEVISION NETWORK IN ROMANIA INITIALLY AVAILABLE TO 40 OF ITS 23 MILLION PEOPLE MIHAI CARCIOG AND COMPANIES HE CONTROLS OWN HALF THE VENTURE WITH THE OTHER HALF HELD BY MARCEL AVRAM WHO HAS AN ENTERTAINMENT BUSINESS THE ADVERTISERSUPPORTED CHANNEL IN THE CAPITAL IS TO AIR NEWS AND ENTERTAINMENT 12 HOURS DAILY STARTING IN JULY AND EXPAND TO ROUNDTHECLOCK OPERATIONS IN THE FIRST YEAR STATE TV VIEWED AS PROGOVERNMENT NOW IS THE ONLY BROADCASTER THAT REACHES MANY RURAL AREAS IRAN INDIA AND CHINA ARE TRYING TO FORGE A COMMON MARKET WHICH COULD LATER INCLUDE PAKISTAN AND JAPAN IRAN'S NEWS AGENCY SAID PRELIMINARY TALKS WERE HELD LAST MONTH IN TEHRAN A MEMBER OF IRAN'S PARLIAMENT WHO VISITED BEIJING SAID THE TRADING BLOC WAS NEEDED TO HALT INDUSTRIALIZED NATIONS' EXPLOITATION OF DEVELOPINGCOUNTRY RESOURCES THE THIRD WORLD MUST JOIN HANDS FOR ECONOMIC DEVELOPMENT EVEN IF THEY HAVE POLITICAL RELIGIOUS AND STRATEGIC DIFFERENCES THE OFFICIAL SAID THE EUROPEAN COURT OF HUMAN RIGHTS CONDEMNED FRANCE FOR TAKING MORE THAN FOUR YEARS TO SETTLE A CLAIM BY A HEMOPHILIAC INFECTED WITH AIDS BY CONTAMINATED BLOOD THE COURT RULED THAT THE DELAY VIOLATED THE PATIENT'S RIGHTS AND IT ORDERED FRANCE TO INCREASE HIS TOTAL COMPENSATION TO 535000 PARIS FACES 400 MORE SUCH CASES TWO FORMER HEALTH OFFICIALS WERE JAILED LAST YEAR IN CONTAMINATION CASES INVOLVING HUNDREDS OF HEMOPHILIACS IN 1985 AUTHORITIES KNEW SOME BLOOD IN BANKS CONTAINED HIV THE VIRUS THAT CAUSES AIDS BUT DIDN'T SCREEN SUPPLIES ADEQUATELY FOR THE THIRD YEAR IN A ROW COMPANIES ARE REDUCING TRAVEL SPENDING A SURVEY BY THE INTERNATIONAL AIR TRANSPORT ASSOCIATION IN GENEVA FOUND THAT FOR EVERY COMPANY SPENDING MORE ON TRAVEL TWO CUT THESE BUDGETS AND THREE KEPT THEM UNCHANGED BUT BUSINESSES AREN'T CUTTING BACK ON TRIPS RESPONDENTS WERE TRAVELING JUST AS MUCH AS BEFORE BUT BOUGHT CHEAPER TICKETS EUROPEANS WERE LESS LIKELY THAN NORTH AMERICANS TO CUT TRAVEL BUDGETS WHILE ASIAN AND PACIFIC FIRMS WERE MOST LIKELY TO BOOST THESE OUTLAYS THE WELLPAID BOSSES OF RUSSIAN INDUSTRIES FORMERLY OWNED BY THE STATE ARE BLOCKING EFFORTS TO BRING BANKRUPTCY PROCEEDINGS AGAINST INSOLVENT ENTERPRISES A TOP ECONOMIC ADVISER TO PRESIDENT BORIS YELTSIN SAID ALEXANDER LIVSHITS SAID THE GOVERNMENT MUST OVERCOME AN ATROPHY OF POLITICAL WILL TO FORCE CLOSURES OF INEFFICIENT COMPANIES WHICH IN TURN WARN THAT THIS WOULD EXPAND JOBLESSNESS AND SOCIAL UNREST DESPITE TOUGHER MARKET CONDITIONS AND SHRINKING GOVERNMENT SUBSIDIES FEW RUSSIAN COMPANIES HAVE GONE BANKRUPT INSTEAD INDUSTRIAL BEHEMOTHS CONTINUE TO MAKE PRODUCTS NO ONE BUYS RUNNING UP TRILLIONS OF RUBLES IN DEBTS TO SUPPLIERS THE PRESIDENT OF THE EUROPEAN MONETARY INSTITUTE SET UP TO PREPARE EUROPEAN UNION COUNTRIES FOR MONETARY UNIFICATION JOINED THE PARADE OF POLICY MAKERS WHO OPPOSE AN EARLY RETURN OF NARROW TRADING BANDS IN THE EUROPEAN MONETARY SYSTEM ALEXANDRE LAMFALUSSY TOLD THE EUROPEAN PARLIAMENT THAT EXCHANGERATE STABILITY LED HIM TO CHANGE HIS MIND ABOUT REINSTATING THE 225 CURRENCYFLUCTUATION LIMITS AS A PREMATURE RETURN COULD FAIL HE FAVORED RETAINING AS LONG AS POSSIBLE THE RANGES IN THE EXCHANGE RATE MECHANISM THAT WERE WIDENED TO 15 LAST AUGUST FOLLOWING SPECULATIVE PRESSURE IN THE PAST SIX MONTHS MOST EUROPEAN UNION CURRENCIES HAVE REMAINED WITHIN THEIR FORMER NARROW BANDS THIS REFLECTS INCREASING CONFIDENCE IN EUROPE THAT EU MONETARY UNION PLANNED FOR 1997 COULD BE ACHIEVED UNDER THE CURRENT STRUCTURE CHINA SIGNED A BORDER TREATY WITH KAZAKHSTAN BEIJING IS NEGOTIATING TO RESOLVE BORDER DISPUTES WITH THREE OTHER FORMER SOVIET REPUBLICS RUSSIA KYRGYZSTAN AND TAJIKISTAN THE SECOND GENERAL STRIKE THIS MONTH IN BANGLADESH SHUT BUSINESSES IN MANY CITIES AS PROTESTERS LED BY THE POLITICAL OPPOSITION DEMANDED THE RESIGNATION OF PRIME MINISTER KHALEDA ZIA WHOSE GOVERNMENT WAS ACCUSED OF VOTE FRAUD IN BYELECTIONS LAST MONTH 9404270007 940427 LEISURE & ARTS THE GALLERY NORTHERN RENAISSANCE ARTIST REDEFINED BY DEBORAH SOLOMON NEW YORK THE HISTORY OF ART TENDS TO TREAT ARTISTS EITHER AS GENIUSES OR NOBODIES AND PETRUS CHRISTUS WHO'S NOW THE SUBJECT OF A WINNING SHOW AT THE METROPOLITAN MUSEUM OF ART FOR YEARS GOT THE NOBODY TREATMENT AFTER HIS DEATH IN 1475 THE WORK OF THIS FLEMISH ARTIST DROPPED OUT OF SIGHT AND WAS IGNORED UNTIL THE 19TH CENTURY MOST PEOPLE TODAY HAVE NEVER HEARD OF HIM IF YOU LOOK HIM UP IN HW JANSON'S CAMPUS CLASSIC THE HISTORY OF ART YOU'LL FIND THAT THE INDEX SKIPS FROM CHRISTO TO CIMABUE LEAPING BACKWARD IN TIME FROM CONTEMPORARY SCULPTURE TO MEDIEVAL MADONNAS WITHOUT THE LEAST REFERENCE TO CHRISTUS THE ARTIST'S LONG OBSCURITY MAY BE PARTLY RELATED TO THE LARGER PREDICAMENT OF THE FLEMISH RENAISSANCE THAT SCHOOL OF PAINTING HAS NEVER HAD THE SHOWSTOPPING PIZAZZ OF THE ITALIAN RENAISSANCE WHILE QUATTROCENTO FLORENCE REMAINS ONE OF THE MOST POPULAR PERIODS IN ART THE SAME ERA IN BRUGES IS NOT NEARLY AS FAMILIAR TO US PERHAPS THAT'S BECAUSE TO OUR EYES THE SCRUPULOUS REALISM OF FLEMISH PAINTING LOOKS DISTANT AND PALE BESIDE THE MODERN BRASHNESS OF FLORENCE FOR THE ITALIANS GREAT ART TOOK THE FORM OF MURAL PAINTINGS AND MONUMENTAL SCULPTURES WHICH WERE INTENDED TO BE SEEN FROM A DISTANCE AND THAT PUSH THEIR POWER AT US ALL AT ONCE NORTHERN EUROPE ON THE OTHER HAND PRODUCED LITTLE IN THE WAY OF MURALS OR SCULPTURE INSTEAD IT FAVORED SMALLSCALE OIL PAINTINGS WHOSE STYLE IS ROOTED IN THE DIMINUTIVE ART OF MANUSCRIPT ILLUMINATION RATHER THAN STRIVING FOR THE ALLORNOTHING GRANDEUR OF ITALY NORTHERN ART IS COATED IN FINE DETAIL AND MEANT TO BE TAKEN IN SLOWLY PETRUS CHRISTUS IS AN ARTIST WHOSE WORK SEEMS ESPECIALLY CLOSE TO THE LITERARY BENT OF FLEMISH ART THE METROPOLITAN SHOW THROUGH JULY 31 WHICH WAS ORGANIZED BY MARYAN W AINSWORTH AND OCCUPIES THE DOWNSTAIRS COURT OF THE ROBERT LEHMAN WING BRINGS TOGETHER ABOUT TWO DOZEN WORKS THAT SPEAK THEIR SECRETS IN A WHISPER MOST OF THE PICTURES ARE SMALL IN SIZE SOME OF THE BEST ONES ARE NO LARGER THAN A CIGAR BOX WHEN CHRISTUS TACKLED BIGGER CANVASES AND TRIED TO ORCHESTRATE A BIBLICAL SCENE RATHER THAN THE MOVEMENTS OF A SOLITARY FIGURE HE USUALLY LOST HIS TOUCH AND LET STIFFNESS SEEP INTO HIS COMPOSITIONS VERY LITTLE IS KNOWN OF CHRISTUS'S LIFE HE WAS FIRST HEARD FROM IN 1444 WHEN AS A THIRTYSOMETHING PAINTER HE ARRIVED IN BRUGES FROM THE PROVINCES JAN VAN EYCK WAS THEN THE LEADER OF THE ART SCENE AND ART HISTORIANS DISAGREE AS TO WHETHER CHRISTUS WORKED AS AN ASSISTANT IN VAN EYCK'S WORKSHOP OR INSTEAD ABSORBED THE MASTER'S INFLUENCE ON HIS OWN EITHER WAY CHRISTUS WAS ALWAYS OVERSHADOWED BY THE OLDER PAINTER WHILE VAN EYCK WAS A COURT ARTIST WHO WORKED FOR DUKES AND DUCHESSES CHRISTUS CATERED TO THE BUSINESS ELITE OF BURGES AND THE NEW FASHION FOR HANGING DEVOTIONAL IMAGES IN THE HOME IT IS NEVER EASY FOLLOWING A LEGEND AND THE TECHNICAL VIRTUOSITY OF VAN EYCK'S ART MIGHT SEEM TO HAVE LEFT LITTLE ROOM FOR INNOVATION CHRISTUS KNEW THIS HE KNEW HE WAS UP AGAINST A WALL SO RATHER THAN TRYING TO DUPLICATE THE DETAILLADEN EXTRAVAGANCE OF VAN EYCK'S ART HE WENT IN THE OPPOSITE DIRECTION THAT IS HE STROVE FOR SIMPLIFICATION WITH THE ODD RESULT THAT TODAY HIS WORK CAN SEEM IN KEEPING WITH THE MODERN TASTE FOR AN ART THAT IS ECONOMICAL AND DIRECT HIS BEST PAINTING PORTRAIT OF A CARTHUSIAN 1446 IS ONE OF THE MOST VIVID LIKENESSES IN THE HISTORY OF ART PAINTED ON A SMALL WOODEN PANEL IT OFFERS A BUSTLENGTH VIEW OF A YOUNG MONK HIS FACE AND WHITE ROBE EMERGING FROM SHADOW AND PRESSED UP CLOSE TO THE VIEWER HE GAZES AT US WITH A WARY EXPRESSION PERHAPS BECAUSE HE LIVED IN AN ERA BEFORE THE CAMERA TURNED EVERYONE INTO AN IMPROMPTU ACTOR HIS FLUFFY BEARD IS PAINTED SO CAREFULLY WE SEE EACH WIRY FRIZZ AS WELL AS THE AIR SWIRLING AROUND IT AT THE BOTTOM OF THE PICTURE A TROMPE L'OEIL FLY PERCHES ON THE FRAME THE FLY IS A REMINDER OF THE WORLD BEYOND THE PAINTING THE NOISE THE BUZZ THE MUNDANE ANNOYANCES THAT AFFLICT EVEN THE PUREST AND MOST DISCIPLINED LIVES FROM ONE PICTURE TO THE NEXT CHRISTUS SIMILARLY BRINGS THE HUM OF DAILINESS INTO THE HUSHED REALM OF RELIGION PERHAPS HE FELT RESTLESS WITH THE DEVOTIONAL MOTIFS THEN REQUIRED OF ART AND YEARNED FOR SUBJECTS THAT WOULD ALLOW HIM TO PAINT PEOPLE AS REAL INDIVIDUALS ADRIFT IN A REAL WORLD HIS ANNUNCIATION C 1450 IS A REFRESHINGLY CASUAL PICTURE MARY STANDS IN THE DOORWAY OF HER STONE HOUSE SHE AND THE WINGED GABRIEL SEEM LESS LIKE BIBLICAL PERSONALITIES THAN TWO NEIGHBORS CHATTING ABOUT THE WEATHER INSTEAD OF TAKING PLACE IN THE USUAL RULERPERFECT CHAPEL THE OUTDOOR SCENE IS VIEWED FROM A TILTING AERIAL PERSPECTIVE AND THE GARDEN BESIDE MARY'S HOUSE IS HOPELESSLY UNKEMPT WITH OVERGROWN GRASS AND A BRICK WALL IN NEED OF REPAIR THE ART OF NORTHERN EUROPE OF COURSE HAS LONG BEEN FAMOUS FOR EXALTING THE QUOTIDIAN AND WOULD FIND ITS MOST ELOQUENT POET TWO CENTURIES AFTER CHRISTUS IN THE ART OF JAN VERMEER YET CHRISTUS WAS A PIONEERING FIGURE HE IS CREDITED WITH PAINTING THE FIRST GENRE PICTURE OF THE NORTH SAINT ELIGIUS 1449 IN WHICH A MIDDLEAGED JEWELER SELLS A RING AMID THE CLUTTER OF HIS SHOP THE PAINTING BELONGS TO THE PERMANENT COLLECTION OF THE METROPOLITAN MUSEUM AS DO THE TWO OTHERS DISCUSSED IN THIS PIECE LARGELY BY COINCIDENCE THE MET HAPPENS TO OWN FIVE CHRISTUS PAINTINGS A SIGNIFICANT NUMBER SINCE ONLY 30 OF HIS PAINTINGS ARE KNOWN TO SURVIVE MOST OF THEM HAVE BEEN ROUNDED UP FOR THIS GREAT SMALL SHOW WHICH IS BEING BILLED BY THE MET AS THE FIRST EXHIBITION EVER DEVOTED TO THE ARTIST AFTER HALF A MILLENNIUM NO ONE CAN SAY IT COMES TOO SOON 9404270006 940427 MITCHELL'S WORK ON HEALTH PLAN FOCUSES ON CONTAINING COSTS DISCOURAGES TAXES BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SENATE MAJORITY LEADER GEORGE MITCHELL IS PAVING A PATH TOWARD HEALTHCARE REFORM THAT DISCOURAGES SUGGESTIONS OF NEW TAXES AND INSTEAD RELIES MORE ON COSTCONTAINMENT AND TARGETED SUBSIDIES FOR SMALL BUSINESSES WITH LOWERWAGE WORKERS THE MAINE DEMOCRAT IS USING HIS AUTHORITY TO MAP OUT A STRATEGY INDEPENDENT OF THE LEADERSHIP OF BOTH THE HOUSE AND SENATE TAXWRITING COMMITTEES FOR THE SECOND TIME IN RECENT WEEKS HE LED HIS FELLOW SENATE DEMOCRATS THROUGH A LENGTHY CLOSEDDOOR TALK YESTERDAY ON HOW TO STREAMLINE AND TARGET RESOURCES IN THE CLINTON ADMINISTRATION'S HEALTH PLAN MR MITCHELL WHO HAS PROMISED TO BE A MAJOR PLAYER IN THE HEALTH DEBATE IN THESE LAST MONTHS OF HIS SENATE CAREER IS ADOPTING THE ROLE OF BOTH TEACHER AND POLITICAL LEADER BUT HIS TACTICS ALSO REFLECT DIVISIONS AMONG DEMOCRATS OVER WHETHER THE PARTY CAN SUPPORT SIGNIFICANT NEW TAXES TO ACHIEVE THE PRESIDENT'S GOAL OF ASSURING COVERAGE FOR ALL AMERICANS BOTH HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI D ILL AND SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN D NY ARE OPENLY SKEPTICAL OF CLINTON'S FINANCING PROPOSALS MR ROSTENKOWSKI WARNED LAST WEEK THAT BROAD TAX INCREASES MAYBE NEEDED UNTIL PROMISED SAVINGS CAN BE ACHIEVED FROM COST CONTAINMENT I PERSONALLY DON'T FAVOR TAX INCREASES ANSWERED MR MITCHELL YESTERDAY WHILE DECLINING TO COMMENT ON MRROSTENKOWSKI'S REMARKS HE DISCOURAGED THE NOTION THAT SUBSTANTIAL NEW REVENUES ARE NEEDED INSTEAD MR MITCHELL APPEARS BENT ON EMPHASIZING THE SAVINGS ALREADY CREDITED TO THE CLINTON PLAN BY THE CONGRESSIONAL BUDGET OFFICE AND HE ARGUES THAT FURTHER EFFICIENCIES ARE POSSIBLE BY PARING PROPOSED BENEFITS AND CONCENTRATING SUBSIDIES ON SMALL FIRMS WITH LOWWAGE WORKERS HE HAS BEEN OUTLINING ALTERNATIVES IN AN EFFORT TO STIMULATE DISCUSSION AMONG SENATORS MANY OF WHOM STILL LACK A BASIC GRASP OF THE ISSUES A CONSISTENT THEME IS TO EMPHASIZE THE SMALLBUSINESS SUBSIDIES ALREADY IN THE PRESIDENT'S PLAN AND HOW TO TARGET THEM BETTER TO HELP LOWERINCOME FAMILIES THE ADMINISTRATION'S PLAN RESTS ON A PROPOSED REQUIREMENT THAT ALL EMPLOYERS PAY FOR 80 OF THEIR WORKERS' HEALTHINSURANCE PREMIUMS VARIOUS SCHEMES HAVE BEEN SUGGESTED TO REDUCE THAT TO 50 FOR SMALL EMPLOYERS YET MR MITCHELL HAS ARGUED THAT MANY SMALL COMPANIES WILL BE PAYING LESS THAN 50 IN ANY CASE GIVEN THE ADMINISTRATION'S SUBSIDIES ALTERNATIVES DISCUSSED YESTERDAY WOULD ENTIRELY EXEMPT COMPANIES WITH FEWER THAN 10 WORKERS FROM THE SOCALLED EMPLOYER MANDATE OR EXPAND THE SUBSIDY SO THAT THE SMALLEST EMPLOYERS' SHARE OF INSURANCE PREMIUMS WOULD BE EQUAL TO AS LITTLE AS 28 OF WORKERS' WAGES WHILE THE ADMINISTRATION WOULD CAP EMPLOYER CONTRIBUTIONS ACCORDING TO TOTAL PAYROLL MR MITCHELL IS PUSHING DEMOCRATS TOWARD APPLYING A STANDARD FOCUSING MORE ON THE LEVEL OF WAGES DEMOCRATS ARE STILL DIVIDED OVER THE FINANCING ISSUE AND OVER WHAT FAITH TO PUT IN VARIOUS COSTCONTAINMENT SCHEMES THE CONGRESSIONAL BUDGET OFFICE HAS SAID THE ADMINISTRATION PLAN WOULD ACHIEVE SIGNIFICANT SAVINGS BUT CONSERVATIVES STRONGLY OPPOSE CAPS THE PRESIDENT'S PLAN WOULD IMPOSE ON INSURANCE PREMIUMS AND INSIST ON A MORE MARKETORIENTED APPROACH MR ROSTENKOWSKI'S WILLINGNESS TO RAISE THE PROSPECT OF NEW TAXES IS DRIVEN IN PART BY HIS CONCERN OVER WHAT SAVINGS WILL BE ACHIEVED UNLESS THE PARTY CAN REACH SOME CONSENSUS OF THE ISSUE IT WILL BE HARD PRESSED TO EFFECTIVELY CRAFT A BILL IN THE TIME REMAINING THIS YEAR 9404270005 940427 INSIDE TRACK INSURANCE INSIDERS GO ON BUYING SPREE BY LESLIE SCISM AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL IN RECENT YEARS ANALYSTS HAVE OFFERED ALL SORTS OF REASONS WHY INSURANCE PREMIUM RATES SHOULD GO UP IN THE PROPERTYANDCASUALTY INSURANCE INDUSTRY AND THUS DRIVE UP PROFITS AND STOCK PRICES BUT RATES HAVE REMAINED STUBBORNLY LOW AND STOCK PERFORMANCES LACKLUSTER NOW THERE MAY BE A NEW INDICATOR INSIDER BUYING DURING THE PAST SEVERAL MONTHS EXECUTIVES AND DIRECTORS OF A NUMBER OF MAJOR PROPERTYANDCASUALTY CONCERNS AS WELL AS RELATED REINSURANCE COMPANIES HAVE BEEN ON A BUYING SPREE THEY'VE SCOOPED UP SHARES AT NAC RE CORP AMERICAN RE CORP CAPITAL RE CORP ST PAUL COS SAFECO CORP SCOR US CORP ALLSTATE CORP PROGRESSIVE CORP AND USF&G CORP MANY ANALYSTS STILL ARE RELUCTANT TO PREDICT THAT THE INSURANCE INDUSTRY'S CYCLE OF FALLING AND RISING PRICES WILL SOON BE ON AN UPTURN OTHERS ARGUE THAT INSURERS' STOCKS SEEM DESTINED TO REBOUND SIMPLY BECAUSE THEY'VE BEEN DOWN SO LONG THE INDUSTRY HAS BEEN IN THE BUST PHASE OF ITS BOOMANDBUST CYCLE SINCE 1987 CYCLES NORMALLY LAST ABOUT SIX YEARS IN THE PERVERSE LOGIC OF THE INDUSTRY HUGE CATASTROPHES CAN BE GOOD NEWS FOR INVESTORS IF THEY COME DEEP INTO A BUST PHASE THE THINKING ATTENDANT LOSSES WILL PUT AN END TO FIERCE PRICE COMPETITION USHERING IN RENEWED PROSPERITY FOR INSURERS BUT SOME ANALYSTS SUGGEST INVESTORS TAKE THEIR CUES FROM INDUSTRY INSIDERS WHO MAY BE ON TO SOMETHING IMPORTANT ONE WOULD HAVE TO CONCLUDE THAT IF THERE'S LOTS OF BUYING THINGS ARE ABOUT TO GET BETTER SOMETIME SOON SAID MICHAEL SMITH A LEHMAN BROTHERS ANALYST AMONG THE BIGGER VOTES OF CONFIDENCE BY INDUSTRY INSIDERS NAC RE DIRECTOR ROBERT BELFER SNAPPED UP 50000 SHARES IN THE GREENWICH CONN REINSURER FOR A TOTAL 13 MILLION BETWEEN FEB 15 AND MARCH 22 INCREASING HIS HOLDINGS BY 6 TWO OTHER NAC RE INSIDERS BOUGHT SMALLER AMOUNTS DURING THE SAME PERIOD SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW MR BELFER ONE OF NAC RE'S LARGEST INDIVIDUAL SHAREHOLDERS WITH AROUND 5 OF THE SHARES OUTSTANDING SAID WHAT PROMPTED ME TO BUY IS MY VIEW THAT THE COMPANY WAS SELLING BELOW ITS ECONOMIC BOOK OVER TIME WE EXPECT INCREASED BUSINESS WILL SHOW INCREASED PROFITS RONALD BORNHUETTER THE COMPANY'S CHAIRMAN SAID ANALYSTS AND INVESTORS LIKELY WON'T BE DISAPPOINTED WITH THE COMPANY'S FIRSTQUARTER EARNINGS THAT ARE TO BE RELEASED TODAY AND HE SAID PARTS OF THE BEATENDOWN PROPERTYCASUALTY BUSINESS ARE INDEED LOOKING BRIGHTER SINCE HURRICANE ANDREW PROPERTY PREMIUM RATES HAVE STRENGTHENED CONSIDERABLY BUT THE SOFT MARKET IN THE CASUALTY SECTOR CONTINUES HE SAID ANOTHER STRONG VOTE OF CONFIDENCE FROM INSIDERS CAME FROM AMERICAN RE OF PRINCETON NJ WHERE NINE INSIDERS PICKED UP A COMBINED 37000 SHARES AT AN AVERAGE 25 APIECE LAST MONTH SOME OF THE BIGGER BUYERS AT AMERICAN RE WHICH WAS BROUGHT PUBLIC BY KOHLBERG KRAVIS ROBERTS & CO IN JANUARY 1993 WERE KKR PARTNERS HENRY KRAVIS WHO BOUGHT 3800 SHARES GEORGE ROBERTS WHO PURCHASED 18400 SHARES SAUL FOX WHO GRABBED 2800 SHARES AND MICHAEL TOKARZ WHO PICKED UP 2000 SHARES AT THE LEAST SAID MICHAEL FRINQUELLI AN INSURANCE ANALYST WITH SALOMON BROTHERS BUYERS ARE SENDING THE MESSAGE THAT PRICES HAVE COME DOWN SO LOW THAT EVEN IF THERE'S NOT A CYCLE TURN THEY CAN'T GET HURT HE ADDED THAT SOME INSURERS' STOCKS ARE FLIRTING WITH BOOK VALUE IF THE CYCLE DOES GET BETTER BUYERS STAND TO MAKE A LOT OF MONEY BUT THE SALOMON ANALYST NOTED THAT INSIDERS TYPICALLY HAVE LONGERTERM VIEWS THAN MANY INVESTORS MANY MAY FIGURE THEY'LL BUY NOW AND SIT FOR A YEAR HE SAID STILL MORE BAD NEWS COULD COME FIRST SUSAN SPIVAK AN ANALYST AT DONALDSON LUFKIN & JENRETTE RECENTLY WROTE THAT AT CURRENT PRICE LEVELS INSURANCE STOCKS REPRESENT ATTRACTIVE APPRECIATION OPPORTUNITIES PROVIDED THAT CERTAIN ECONOMIC CONDITIONS PREVAIL THIS YEAR AND THAT INSURERS TAKE STEPS TO IMPROVE UNDERWRITING MARGINS BUT SHE ALSO WARNED THAT THERE COULD BE STILL MORE SELLING TO COME FROM THOSE INSTITUTIONS LOOKING TO REDUCE THEIR EXPOSURE TO INTERESTSENSITIVE STOCKS OF THE COMPANIES WITH RECENT INSIDER BUYING DLJ HAS BUY RECOMMENDATIONS ON SAFECO AND PROGRESSIVE AT SAFECO THREE INSIDERS BOUGHT A TOTAL 2100 SHARES IN FEBRUARY AT PROGRESSIVE TWO INSIDERS PICKED UP 11500 SHARES IN MARCH BUT MR SMITH THE LEHMAN ANALYST SAID ALL THE SIGNS POINT TO A TURN HE SAID THAT WRITTEN PREMIUMS SURGED 79 IN THE FOURTH QUARTER FROM THE YEAREARLIER PERIOD AND 56 FOR THE YEAR THE STRONGEST PERFORMANCE SINCE 1988 IN ADDITION HE SAID FOR THE FIRST TIME SINCE 1987 PREMIUMS GREW FASTER THAN THE ECONOMY MEASURED AGAINST NOMINAL GROSS DOMESTIC PRODUCT PROPERTY RATES ARE UP IN COASTAL AREAS AND SOME OF THIS IS BEGINNING TO LEACH INTO NONCATASTROPHEPRONE MARKETS AND CASUALTY RATES KEY TO A CYCLE TURN DON'T SEEM TO BE GETTING WEAKER HE SAID MEANWHILE MR SMITH SAID HE SEES MORE SIGNS OF A TURN IN THE INDUSTRY'S DETERIORATING CASHFLOW POSITION LAST YEAR'S CASHFLOW WAS AS BAD AS IT WAS IN 1984 THE BOTTOM OF THE LAST DOWN CYCLE IT DIDN'T FORCE INSURERS TO GENERALLY RAISE PRICES HOWEVER BECAUSE THEY LIQUIDATED STOCKS AND BONDS TO PAY CLAIMS REALIZING HUGE GAINS FROM THE BOOMING SECURITIES MARKETS NOW HOWEVER THOSE MARKETS ARE MUCH WEAKER WHERE ELSE CAN INSURERS TURN NEXT BUT TO THEIR POLICYHOLDERS HE SAID MR SMITH LIKES NAC RE AMERICAN RE ST PAUL SAFECO AND USF&G AMONG THOSE PROPERTYCASUALTY GROUPS REPORTING INSIDER BUYING SOME ANALYSTS BELIEVE THAT THE INSIDER BUYING ALSO GIVES CREDENCE TO A THEORY PERCOLATING ON WALL STREET KNOWN AS THE ROLLING CYCLE THANKS TO NEW COSTACCOUNTING COMPUTER SOFTWARE NOT AVAILABLE IN EARLIER CYCLES SAVVY INSURANCE COMPANIES CAN QUICKLY IDENTIFY THE LOWESTMARGIN BUSINESS LINES AND DECREASE THOSE OPERATIONS EVEN AS OTHER INSURERS LANGUISH IN AN OVERALL SLUGGISH PRICING ENVIRONMENT THE ROLLING CYCLE THEORY HOLDS THAT INVESTORS NOWADAYS WILL NEED TO SELECTIVELY CHOOSE THOSE INSURERS DOING THE BEST JOB ALLOCATING RESOURCES ACCORDING TO PROFIT MARGINS AND CAN'T COUNT ON OVERALL CYCLE CHANGES TO TELL THEM WHEN TO BEGIN INVESTING IN THE PROPERTYANDCASUALTY INDUSTRY 9404270004 940427 DIVIDEND NEWS SCHERINGPLOUGH CORP SCHERINGPLOUGH CORP A MADISON NJ PHARMACEUTICAL AND HEALTHCARE COMPANY RAISED ITS QUARTERLY DIVIDEND 13 TO 51 CENTS FROM 45 CENTS PAYABLE MAY 31 TO STOCK OF RECORD MAY 6 9404270001 940427 DEAN WITTER TO BUY BACK SHARES NEW YORK DEAN WITTER DISCOVER & CO SAID DIRECTORS AUTHORIZED REPURCHASE OF AS MANY AS FOUR MILLION COMMON SHARES FOR ITS EMPLOYEE STOCK BENEFIT PLAN THE FINANCIALSERVICES CONCERN HAS ABOUT 171 MILLION SHARES OUTSTANDING 9404270070 940330 COSTLIER LABOR FEWER JOBS WHY AIRLINES CRASH BY FRANK J DOOLEY IN AN ATTEMPT TO SALVAGE THEIR COMPANY EMPLOYEES OF UAL CORP UNITED AIRLINES' PARENT ARE BUYING OUT THE CARRIER OTHER CARRIERS HAVE UNDERGONE SIMILAR CRISES IN RECENT YEARS WHAT ACCOUNTS FOR THE TROUBLES IT'S NOT THE FAULT OF DEREGULATION AS SOME CRITICS CLAIM THE BASIC PROBLEM IS THAT DESPITE A TUMULTUOUS 15 YEARS OF LABOR RELATIONS SINCE DEREGULATION VERY LITTLE HAS REALLY CHANGED UNIONS STILL HOLD THE UPPER HAND IN BARGAINING POWER AT MAJOR AIRLINES LEADING TO HIGH LABOR COSTS LOW PRODUCTIVITY AND LOTS OF RED INK IN THIS SENSE A UNION BUYOUT LIKE UNITED'S IS A MIXED BLESSING FOR UNIONS OF ALL GROUPS HAVE THE HARDEST TIME CUTTING LABOR COSTS UNLESS UNIONS BECOME WILLING TO WORK WITH MANAGEMENT TO CONTROL COSTS THE LARGEST CARRIERS AMERICAN DELTA UNITED AND USAIR MAY SUFFER THE FATE OF EASTERN AND PAN AM EXTINCTION PRIOR TO DEREGULATION IN 1978 AIRLINE LABOR COSTS WERE RARELY AN ISSUE SINCE WAGE INCREASES WERE SIMPLY PASSED ON TO THE CONSUMER THROUGH HIGHER FARES NEW AIRLINES WERE RESTRICTED FROM ENTERING THE MARKET AND LABOR COSTS VARIED LITTLE AMONG COMPETITORS THUS AIRLINE WORKERS GAINED WAGE PREMIUMS THAT TODAY ARE STILL 49 HIGHER THAN MANUFACTURING EMPLOYEES' UNION POWER SEEMED TO DIMINISH IN THE EARLY 1980S WITH THE DEVELOPMENT OF TWOTIERED WAGE SCALES FOR NEW EMPLOYEES BANKRUPTCIES TO AVOID UNION CONTRACTS AND A PROLIFERATION OF THREATS BY BIG CARRIERS TO SPIN OFF NONUNION LOWCOST SUBSIDIARIES BUT BY THE MIDDLE OF THE DECADE THE PENDULUM SWUNG BACK AS EVIDENCED BY TWO STRIKES THE PILOT WALKOUT AT UNITED IN 1985 AND THE WALKOUT BY MECHANICS PILOTS AND FLIGHT ATTENDANTS AT EASTERN IN 1989 MORE RECENTLY THE STRIKE BY FLIGHT ATTENDANTS AT AMERICAN MADE IT EVEN MORE CLEAR THAT IN TODAY'S COMPETITIVE MARKETPLACE LARGE CARRIERS CANNOT WITHSTAND THE SIGNIFICANT LOSS OF MARKET SHARE DURING EVEN A RELATIVELY BRIEF LABOR ACTION RECENTLY COMPETITION HAS BEEN DRIVEN BY TICKET PRICES THIS IS DUE FIRST TO THE SUCCESS AND GROWTH OF SUCH LOWCOST CARRIERS AS SOUTHWEST AND SECOND TO THE NEED FOR A QUICK CASH STIMULUS BY CARRIERS THAT HAVE GONE THROUGH BANKRUPTCY PROCEEDINGS SUCH AS CONTINENTAL AND TWA BY 1992 MORE THAN 90 OF ALL AIRLINE PASSENGERS WERE TRAVELING ON DISCOUNT FARES AS PRICE COMPETITION INCREASED THE PRESSURE ON LARGE CARRIERS TO REDUCE COSTS ALSO INCREASED AND THE SINGLELARGEST CONTROLLABLE COST IS LABOR THE GAP IN LABOR COSTS IS THE MOST SIGNIFICANT FACTOR IN KEEPING THE LARGE AIRLINES UNCOMPETITIVE ACCOUNTING FOR 60 OF THE TOTAL COST DIFFERENCE BETWEEN THE MAJOR CARRIERS AND THEIR LOWCOST COMPETITORS AND IT IS PRODUCTIVITY FEWER EMPLOYEES DOING MORE WORK MORE THAN WAGES THAT SEPARATES THE TWO THE 1992 AVERAGE SALARY OF 56874 FOR SOUTHWEST AIRLINES EMPLOYEES WAS ALMOST IDENTICAL TO THAT OF THE LARGEST CARRIERS HOWEVER SOUTHWEST EMPLOYEES HAD MUCH HIGHER PRODUCTIVITY AT THE LOWCOST CARRIERS INCLUDING SOUTHWEST PILOTS FLEW AN AVERAGE OF 637 HOURS PER MONTH VS 483 HOURS PER MONTH AT THE LARGEST CARRIERS HIGH PRODUCTIVITY PROVIDES SMALLER CARRIERS A 38 LABORCOST EDGE AND A WHOPPING PRICING ADVANTAGE TAKE FOR EXAMPLE A 620MILE FLIGHT BETWEEN BALTIMORE AND CHICAGO A MARKET RECENTLY ENTERED BY LOWCOST SOUTHWEST BASED ON 1992 DATA THE AVERAGE LARGE CARRIER WOULD PAY 1200 MORE IN TOTAL LABOR COSTS ALONE THAN A SMALLER CARRIER FOR THAT SINGLE ONEWAY FLIGHT WHEN YOU MULTIPLY THAT FIGURE BY THOUSANDS OF FLIGHTS EACH DAY THE DIFFERENCE IS ASTOUNDING AS CARRIERS LIKE SOUTHWEST ENTER THE LONGERHAUL MAJOR BUSINESS MARKETS SUCH AS THE BALTIMORECHICAGO ROUTE LONG DOMINATED BY AMERICAN UNITED AND USAIR PRICE COMPETITION MAKES IT EXTREMELY DIFFICULT FOR THE LARGE CARRIERS TO CHARGE HIGHER FARES TO MAKE UP FOR THE DIFFERENCE IN LABOR COSTS INSTEAD THEY ARE FORCED INTO SUCH STRATEGIES AS OFFERING THEIR OWN NOFRILLS SERVICE CLOSING SMALL HUBS DELAYING OR CANCELING DELIVERIES OF NEW PLANES RETIRING OLD PLANES AND ELIMINATING MANAGEMENT AND LABOR POSITIONS ANOTHER POPULAR STRATEGY ALREADY EMPLOYED BY NORTHWEST AND OTHERS IS TO OFFER EQUITY OWNERSHIP TO UNIONS IN RETURN FOR CONCESSIONS AT UNITED EMPLOYEES WILL ACQUIRE 53 TO 63 OF EQUITY AND THREE BOARD SEATS IN EXCHANGE FOR 5 BILLION IN PAY BENEFIT AND WORKRULE CONCESSIONS PILOT WAGES WILL FALL ABOUT 16 WHILE GROUND CREWS' WAGES WILL DROP ABOUT 10 A NOFRILLS SERVICE CALLED U2 WILL ALSO BE LAUNCHED DESPITE SIMILAR EFFORTS THE LARGE CARRIERS SO FAR HAVE MADE LITTLE HEADWAY IN LOWERING COSTS LABOR REMAINS 36 OF TOTAL COSTS AT THE LARGER CARRIERS VS 31 AT FORMERLY BANKRUPT AND LOWCOST CARRIERS AND THE GAP IS WIDENING THE BENEFITS OF TWOTIER WAGE PLANS ARE LOST BECAUSE THE LOWESTPAID EMPLOYEES ARE THE FIRST TO BE LAID OFF WHEN THE AIRLINES CUT CAPACITY TO REMAIN COMPETITIVE LARGER CARRIERS AND UNIONS MUST DEVELOP STRATEGIES TO CHANGE ANACHRONISTIC WORK RULES CONTRACT OUT WORK AND ALLOW PREMIUM PAY FOR OUTSTANDING EMPLOYEES WITHOUT THESE KINDS OF CHANGES THE FUTURE OF AIRLINES LIKE AMERICAN DELTA UNITED AND USAIR REMAINS UP IN THE AIR MR DOOLEY IS AN ECONOMIST AT NORTH DAKOTA STATE UNIVERSITY THIS ARTICLE IS BASED ON A STUDY PUBLISHED IN THE SPRING ISSUE OF THE JOURNAL OF LABOR RESEARCH SEE RELATED LETTER LETTERS TO THE EDITOR HUBS STARTED AIRLINES' NOSEDIVE WSJ APRIL 27 1994 9403300016 YY94 MM04 9404270092 940215 MANY FIRMS IN US ARE URGING CAUTION IN DISPUTE ON TRADE AS CLINTON MOVES TO IMPOSE SANCTIONS ON JAPAN CALM IS SOUGHT BY CORPORATIONS A WALL STREET JOURNAL NEWS ROUNDUP WITH THE CLINTON ADMINISTRATION MOVING TO SLAP TRADE SANCTIONS ON JAPAN MOST OF CORPORATE AMERICA INCLUDING SOME COMPANIES EXASPERATED WITH JAPAN IS CALLING FOR CAUTION AND CALM PREDICTABLY FIRMS HURT BY JAPANESE COMPETITION WERE MORE INCLINED TO SUPPORT RETALIATION BY AND LARGE THOUGH US BUSINESSES EVEN THOSE WHO APPLAUD THE CLINTON ADMINISTRATION'S HANGTOUGH STANCE DON'T WANT A TRADE WAR THAT THREATENS TO FLARE OUT OF CONTROL SOME EXECUTIVES SAW THE RISING YEN AS A WAY TO SOLVE THE TRADE PROBLEM PEACEFULLY BY GIVING JAPANESE CONSUMERS MORE BUYING POWER AND RAISING THE COST OF JAPANESE GOODS IN THE US BE CAUTIOUS SAID JOSEPH MONTGOMERY CHIEF EXECUTIVE OFFICER AT CANNONDALE CORP A GEORGETOWN CONN OFFROAD BICYCLE MAKER THERE'S GOT TO BE A LOT OF DIFFERENT WAYS TO WRINKLE THIS WORM AROUND EVEN GIDDINGS & LEWIS INC A BIG US MACHINETOOL MAKER WHICH HASN'T MADE A MAJOR SALE IN JAPAN SINCE 1974 ISN'T PUSHING ANY SPECIFIC RETALIATION PLANS THE FOND DU LAC WIS COMPANY ONLY SAYS THAT THE US SHOULD CLOSELY LOOK AT THE OPTIONS AVAILABLE TO IT INDUSTRIES HURT BY JAPANESE EXPORTS PARTICULARLY THE AUTO COMPANIES TEND TO TAKE A TOUGHER LINE JAPAN SEEMS DETERMINED NOT TO ALLOW A MEANINGFUL OPENING OF THEIR MARKET SAID ROBERT J EATON CHRYSLER CORP CHAIRMAN HIS COMPANY WANTS TO SEE HIGHER TARIFFS ON JAPANESE MINIVANS AND SPORTUTILITY VEHICLES STEVEN WOLF A VICE PRESIDENT AT THE RIVER OAKS CHRYSLER/PLYMOUTH DEALERSHIP IN HOUSTON SAID HE WOULD LIKE TO SEE TARIFFS SLAPPED ON JAPANESE AUTOS AND OTHER PRODUCTS WHICH HE BELIEVES ARE DUMPED IN THE US CHRYSLER SELLS CARS TO MAKE A PROFIT TOYOTA MOTOR CORP AND THE JAPANESE SELL CARS TO MAINTAIN MARKET SHARE MR WOLF COMPLAINED OTHERS JOINED CHRYSLER IN THE CALL FOR RETALIATION WE WOULD BE HAWKS SAID CHRIS DOLAN MANAGER OF PLANNING AND DEVELOPMENT AT GUARDIAN INDUSTRIES CORP WHICH HAS BEEN SELLING GLASS TO THE JAPANESE AUTOMOTIVE AND CONSTRUCTION MARKET FOR SEVERAL YEARS WE SUPPORT THE TOUGH STANCE THE ADMINISTRATION HAS TAKEN THAT'S THE ONLY WAY WE WILL EVENTUALLY PRY OPEN THE JAPANESE MARKET HE SAID ADDING THAT GUARDIAN SALES IN JAPAN ARE EXTREMELY SMALL COMPARED TO THE PRICE OF DOING BUSINESS THERE CRAY RESEARCH INC THE BIG US SUPERCOMPUTER MAKER SAID THE CLINTON ADMINISTRATION DID EXACTLY THE RIGHT THING IN BREAKING OFF TALKS CRAY OFFICIALS SAID THE COMPANY HAS NEVER HAD A FAIR SHOT IN COMPETITIONS WITH FIRMS SUCH AS HITACHI LTD NEC CORP AND FUJITSU LTD BUT PAUL DILLINGHAM VICE PRESIDENT OF GOVERNMENT OPERATIONS DISCOURAGED US RETALIATION BECAUSE IT WOULD BE A VERY VERY SERIOUS STEP FOR THE US GOVERNMENT TO TAKE IT WOULD IMPACT A VARIETY OF INDUSTRIES MEANWHILE JAPAN SIGNALED NEW OPENNESS TO US SUPERCOMPUTER MAKERS A GOVERNMENT RESEARCH INSTITUTE ANNOUNCED YESTERDAY THAT IT WOULD BUY MACHINES FOR A SUPERCOMPUTER CENTER FROM SEVERAL US COMPANIES LED BY INTERNATIONAL BUSINESS MACHINES CORP JAPANESE OFFICIALS SAID THE CONTRACTS MEAN SIX OF THE PAST 11 PUBLIC SUPERCOMPUTER BIDS HAVE GONE TO US MAKERS HIGHTECH COMPANIES THAT COUNT ON JAPANESE IMPORTS GREW NERVOUS THAT THE TRADE FRACAS WILL BE COSTLY STEVEN RAYMUND CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TECH DATA CORP A CLEARWATER FLA WHOLESALE DISTRIBUTOR OF MICROCOMPUTER HARDWARE AND SOFTWARE NOTED THAT ABOUT 10 TO 20 OF THE PRODUCTS THE COMPANY SELLS HAVE A JAPANESE LABEL WHILE AS MUCH AS A THIRD CONTAIN JAPANESE PARTS IF WE CAN'T GET THEIR PRODUCTS ANYMORE IT'S GOING TO BRING OUR INDUSTRY TO ITS KNEES HE WARNED MR RAYMUND SAID IT'S FOOLISH FOR THE US TO RETALIATE AGAINST THE JAPANESE NOW BECAUSE OF THE INTERNAL POLITICAL STRAIN THE JAPANESE PRIME MINISTER IS CLINGING TO POWER BY HIS FINGERTIPS HE REASONED THE GUY IS GOING TO HAVE TO DIG IN HIS HEELS TO RETAIN RESPECT AT HOME THE US IS CHOOSING THE WORST POSSIBLE MOMENT TO CONFRONT JAPANESE LEADERSHIP FOR HIS PART PRIME MINISTER MORIHIRO HOSOKAWA PICKED UP SUPPORT AT HOME FOR HIS DEFIANT STANCE IN PREVIOUS TRADE SPATS THE US WAS ABLE TO WIN ALLIES IN SOME KEY JAPANESE CONSTITUENCIES SUCH AS CONSUMERS SUFFERING FROM THE HIGH PRICES THAT RESULT FROM IMPORT BARRIERS BUT THIS TIME THE US FAILED TO CONNECT WITH ANY JAPANESE SUPPORTERS JAPAN'S POWERFUL BUREAUCRATS IN PARTICULAR ARE REJOICING OVER THE COLLAPSE OF THE FRAMEWORK TRADE TALKS WHICH THEY HAD OPPOSED FROM THE START WE'RE SATISFIED SAID ONE MANDARIN WHO JUST RETURNED FROM WASHINGTON INSURANCE EXECUTIVES HAD CLOSELY WATCHED THE TRADE TALKS HOPING FOR BREAKTHROUGHS THAT WOULD OPEN JAPAN'S MARKET THOUGH DISAPPOINTED BY THE COLLAPSE OF TALKS EDWARD HANWAY PRESIDENT OF CIGNA INTERNATIONAL PROPERTY & CASUALTY A DIVISION OF PHILADELPHIABASED CIGNA CORP URGED CAUTION I'M NOT GUNGHO LET'SSANCTIONTHEHELLOUTOFTHEM' HE SAID CIGNA HAS BEEN SELLING INSURANCE IN JAPAN SINCE THE EARLY 1920S SCOTT MONTGOMERY CHAIRMAN OF JAPAN OPERATIONS FOR CANNONDALE THE BICYCLE MAKER ARGUED SANCTIONS ARE POLITICALLY POWERFUL BUT ECONOMICALLY WON'T MAKE A HILL OF BEANS I WOULD MUCH RATHER SEE THE YEN AT A 100 YEN TO THE DOLLAR THAN TRADE SANCTIONS CANNONDALE EXECUTIVES EXPECT THE COMPANY'S SALES IN JAPAN TO ACCOUNT FOR ABOUT 5 MILLION OF ITS ESTIMATED 105 MILLION IN TOTAL SALES FOR THE FISCAL YEAR ENDING JUNE 30 WALL STREET APPEARS TO BE FOLLOWING THE SENTIMENT OF MANY CORPORATE EXECUTIVES RICHARD BERNER CHIEF ECONOMIST AT MELLON BANK CORP SAID THE RISE OF THE YEN TO ABOUT 102 YEN TO THE DOLLAR DEMONSTRATES THE MARKET'S EXPECTATION THAT THE ADMINISTRATION WILL WANT TO USE THE STRONG YEN TO PRY MORE ACTION OUT OF THE JAPANESE ON THE TRADE SIDE SHEVACH SARAF CHAIRMAN CHIEF EXECUTIVE AND PRESIDENT OF SOLITRON DEVICES INC A MAKER OF SEMICONDUCTORS AND OTHER COMPONENTS USED BY THE DEFENSE AND AEROSPACE INDUSTRIES WARNED THAT THERE WILL BE NO MOVEMENT UNLESS THE US SHOWS THEM JAPAN A STRONG HAND BUT THE HEAD OF THE WEST PALM BEACH FLA CONCERN SAID HE PERSONALLY OPPOSES RETALIATION PROTECTIONISM PROTECTS INDUSTRY IN THIS COUNTRY CONTINUING THE WAY IT'S GOING NOW INSTEAD OF TRYING TO EXCEL HE SAYS THE WAY FOR THE US TO RETALIATE IS TO SUBSIDIZE AND PROMOTE NEW PRODUCT DEVELOPMENT AND AUTOMATION SO US MANUFACTURERS COULD BECOME MORE COMPETITIVE WITH THE JAPANESE ON QUALITY SEE RELATED LETTER LETTERS TO THE EDITOR SANCTIONS ILLADVISED IN DEALING WITH JAPAN WSJ APRIL 27 1994 9402150113 YY94 MM04 9404270095 940119 TEXAS JOURNAL WORKERS' COMP DID THE REFORMS HELP BIG BUSINESS SAYS YES SMALL FIRMS WORKERS AND THE COURTS SAY NO BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL WHEN TEXAS LEGISLATORS OVERHAULED THE WORKERS' COMPENSATION SYSTEM IN 1989 THE NEW LAW WAS HAILED AS A MODEL FOR OTHER STATES A MODEL IT DEPENDS WHOM YOU ASK FOR MANY OF THE STATE'S LARGEST BUSINESSES THE REFORMS DESIGNED TO LOWER COSTS AND IMPROVE BENEFITS HAVE WORKED WELL BUT ASK SMALL BUSINESSES AND IT'S A DIFFERENT STORY MANY REMAIN OUTSIDE THE SYSTEM ARGUING THAT COSTS HAVEN'T COME DOWN NEARLY AS MUCH AS PROMISED IF THEY HAVE COME DOWN AT ALL AND INJURED WORKERS ARE EVEN MORE UPSET COMPLAINING THAT THEY ARE CAST ADRIFT IN A COMPLEX HEARING PROCESS OUTGUNNED BY COMPANY LAWYERS AND ABANDONED BY PLAINTIFFS' ATTORNEYS WHO WON'T WORK UNDER LIMITS ON LEGAL FEES IN FACT A STATE APPEALS COURT IN AUGUST RULED THE LAW UNCONSTITUTIONALLY DEPRIVES WORKERS OF THEIR RIGHT TO FAIR COMPENSATION FOR WORKPLACE INJURIES AND EVEN IF THE LAW IS UPHELD BY THE STATE SUPREME COURT IT HAS TO SURVIVE A CONCERTED ATTACK BY LEGISLATIVE ENEMIES IN THE 1995 SESSION THE TEXAS REFORMS HAVE BEEN TOUTED AS A MODEL FOR OTHER STATES SAYS DEECE ECKSTEIN A MEMBER OF THE STATE BOARD OF INSURANCE BUT IT HASN'T BEEN ESTABLISHED YET THAT THE BENEFITS HAVE BEEN IMPROVED FOR INJURED WORKERS OR THAT COSTS HAVE GONE DOWN FOR MOST BUSINESSES ESPECIALLY SMALL BUSINESSES THAT WASN'T THE WAY IT WAS SUPPOSED TO BE FOUR YEARS AGO WHEN LEGISLATORS APPROVED SWEEPING CHANGES IN THE 75YEAROLD SYSTEM FOR COMPENSATING EMPLOYEES FOR WORKPLACE INJURIES TAKING AIM AT RUNAWAY COSTS THAT THREATENED TO CHASE INSURERS AND BUSINESSES FROM THE STATE LEGISLATORS SET STANDARDS BASED ON AMERICAN MEDICAL ASSOCIATION GUIDELINES FOR DETERMINING DISABILITY TIED ATTORNEYS' FEES TO ACTUAL TIME AND EXPENSES AND PUT LIMITS ON LUMPSUM SETTLEMENTS EMPLOYERS IN TEXAS CAN BUY WORKERS' COMPENSATION INSURANCE FROM AMONG SOME 260 PRIVATE INSURERS OR FROM THE TEXAS WORKERS' COMPENSATION INSURANCE FUND A PRIVATE FUND CAPITALIZED BY A STATE BOND ISSUE LARGE EMPLOYERS ALSO CAN SELF INSURE WHILE KEEPING THE LAW'S PROTECTION AGAINST LARGE LEGAL JUDGMENTS BUT TEXAS IS ALSO ONE OF THREE STATES THAT ALLOW EMPLOYERS TO GO BARE NOT PROVIDE ANY WORKERS' COMPENSATION COVERAGE AT ALL MANY COMPANIES INSTEAD PAY FOR EMPLOYEES' INJURIES OUT OF POCKET OR BY PURCHASING STANDARD HEALTH AND DISABILITY POLICIES ALONG WITH AN INDEMNITY POLICY TO GUARD AGAINST CATASTROPHIC CLAIMS ACCORDING TO A STUDY BY TEXAS A&M UNIVERSITY 44 OF BUSINESSES IN THE STATE DON'T PROVIDE WORKERS' COMP INSURANCE THAT MAY CHANGE THE TEXAS WORKERS' COMPENSATION COMMISSION IS CONSIDERING ASKING FOR A LEGISLATIVE REVIEW OF MANDATORY COVERAGE COMMISSIONERS COULD DECIDE TOMORROW TO INCLUDE THE ISSUE IN A LIST OF TOPICS FOR CONSIDERATION BY THE TEXAS SUNSET COMMISSION BY MANY MEASURES THE REFORMS WHICH HAVE THE SUPPORT OF MOST OF THE STATE'S BUSINESS ASSOCIATIONS HELPED DOUBLEDIGIT INCREASES IN PREMIUMS PAID BY BUSINESSES TO INSURANCE COMPANIES HAVE BEEN CURBED AND TOTAL PREMIUMS DROPPED BY 25 IN 1992 TO 29 BILLION FROM 4 BILLION IN A RECENT SURVEY BY THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS NEARLY A THIRD OF TEXAS SMALL BUSINESSES THAT ARE IN THE SYSTEM SAW THEIR RATES FALL IN THE PAST YEAR AT THE SAME TIME COMPENSATION FOR SOME WORKERS HAS IMPROVED THE AVERAGE WEEKLY BENEFIT HAS INCREASED TO 250 FROM 190 UNDER THE OLD LAW MAXIMUM BENEFITS HAVE NEARLY DOUBLED TO 464 A WEEK BUT LOOK A LITTLE CLOSER AND THE GAINS BECOME LESS IMPRESSIVE NEARLY HALF OF THOSE SURVEYED SMALL BUSINESSES FOR INSTANCE SAID THEIR WORKERS' COMP RATES ROSE IN THE PAST YEAR MOREOVER 1 BILLION OF THE 11 BILLION DECLINE IN PREMIUMS STEMS FROM THE FACT THAT UNDER THE NEW LAW INSURANCE COMPANIES CAN OFFER DEDUCTIBLES THE COSTS IN OTHER WORDS HAVE BEEN SHIFTED FROM THE FRONT END TO THE BACK IN ADDITION CRITICS SAY THE USE OF DEDUCTIBLES PRIMARILY HELPS LARGE COMPANIES WHICH CAN BETTER ABSORB BIG LOSSES BIG ENTERPRISES ALSO CAN USE THEIR CLOUT TO NEGOTIATE RATES BELOW THE STATEESTABLISHED BENCHMARKS LITTLE WONDER THEN THAT 88 OF BUSINESSES WITH MORE THAN 1000 EMPLOYEES HAVE CHOSEN TO REMAIN IN THE SYSTEM COMPARED WITH 60 OF THOSE WITH TWO TO FIVE EMPLOYEES CERTAINLY TOM WEEKLEY OWNER OF WHALEN FURNITURE INC IN MCALLEN HASN'T SEEN HIS RATES FALL HIS RATES JUMPED 88 IN 1992 LEAVING HIS ANNUAL PREMIUMS AT TWICE THEIR 1990 LEVEL EVEN THOUGH HE HASN'T HAD A CLAIM IN 14 YEARS FOR THEIR PART INSURERS INSIST THEY NEED TO RECOUP LOSSES INCURRED UNDER THE OLD SYSTEM WHILE MANY REMAIN RELUCTANT TO LOWER RATES WHILE THE REFORMS STILL COULD BE REVERSED BY THE COURTS PERHAPS BUT UNTIL RATES COME DOWN SIGNIFICANTLY MANY COMPANIES WILL CONTINUE TO OPT OUT OF THE SYSTEM A CASE IN POINT SOUTHERN FOODS GROUP INC A DALLAS MILKPROCESSING COMPANY WITH 2200 EMPLOYEES WHICH DECIDED TWO YEARS AGO TO OPERATE WITHOUT WORKERS' COMP INSURANCE THE BIG REASON SAYS PAMELA BUSH THE COMPANY'S OCCUPATIONALINJURY BENEFITS MANAGER WAS COST SINCE LEAVING THE SYSTEM SHE SAYS PREMIUMS THAT WERE IN THE MILLIONS HAVE BEEN ELIMINATED INSTEAD THE COMPANY PAYS INJURED WORKERS' MEDICAL EXPENSES AND 80 OF LOST SALARY FOR AS LONG AS AN INJURED EMPLOYEE IS OFF WORK COMPARED WITH 70 TO 75 FOR NO MORE THAN TWO YEARS UNDER WORKERS' COMPENSATION AND IT BUYS AN INDEMNITY POLICY TO COVER CATASTROPHIC LOSSES AND INSTEAD OF SENDING PERMANENTLY DISABLED WORKERS A CHECK TO COMPENSATE FOR THE LOSS OF WAGEEARNING CAPACITY SOUTHERN RETRAINS ITS EMPLOYEES FOR NEW JOBS SOUTHERN'S ANNUAL COSTS NOW LESS THAN 1 MILLION NONSUBSCRIPTION ALSO DOES AWAY WITH THE INSURANCECOMPANY MIDDLEMAN MS BUSH SAYS ALLOWING HER TO COMMUNICATE DIRECTLY WITH THE INJURED WORKER AND GIVING HER GREATER CONTROL OVER TREATMENT FOR THOSE OF US WHO HAVE REALLY GOOD ALTERNATIVE PROGRAMS GOING BACK WOULD BE DEVASTATING SHE SAYS NONSUBSCRIBERS HOWEVER FACE SUBSTANTIAL RISKS A COMPANY WITHOUT WORKERS' COMP INSURANCE HAS TO BE ONLY PARTLY NEGLIGENT TO BE FULLY LIABLE FOR DAMAGES AND WHILE CLAIMS FOR DAMAGES UNDER THE WORKERS' COMP LAW ARE CAPPED OUTSIDE THE SYSTEM THEY ARE LIMITLESS WITNESS A RECENT CASE IN HOUSTON IN WHICH A TRUCK DRIVER SLIPPED OUT OF HIS TRUCK INJURING HIS BACK AND SUSTAINING 17000 IN MEDICAL COSTS HIS JURY AWARD 35 MILLION STILL IF BUSINESSES ARE UNHAPPY WITH THE NEW LAW INJURED WORKERS ARE DEVASTATED FOR MANY INJURED WORKERS NONSUBSCRIPTION CAN MEAN THEY ARE AT THE MERCY OF NOTALWAYSBENEVOLENT EMPLOYERS SOME FEEL THEY ARE RUSHED BACK TO WORK TOO SOON OR THAT HARDTOVERIFY INJURIES SUCH AS BACK PAIN ARE DOWNPLAYED IT'S A FIEFDOM SAYS RICHARD LEVY TEXAS AFLCIO'S STAFF COUNSEL THERE ISN'T A SYSTEM TO INSURE THAT THE WORKER'S RIGHTS ARE PROTECTED MOREOVER PLAINTIFFS' LAWYERS WHO IN THE PAST DID VERY WELL PRESSING WORKERS' COMPENSATION CLAIMS HAVE ALL BUT ABANDONED THE FIELD THEY COMPLAIN THAT THE NEW LIMITS ON FEES AND LUMPSUM SETTLEMENTS HAVE MADE COMPENSATION CASES UNAFFORDABLE THIS IS ABOUT THE WORST LAW I'VE EVER SEEN THE TEXAS LEGISLATURE PASS SAYS PHIL HARDBERGER A SAN ANTONIO ATTORNEY WHOSE WORKERS' COMPENSATION CASE LOAD HAS PLUNGED TO TWO FROM 400 MARY FLORES A CARDIAC NURSE IN SAN ANTONIO DIDN'T HAVE A LAWYER WHEN SHE PRESSED HER CLAIM FOR A CHRONIC FOOT INJURY THROUGH THE TEXAS WORKERS' COMPENSATION COMMISSION'S NEW HEARING PROCESS SHE WON HER CASE IN AN ADMINISTRATIVE HEARING BUT A COMMISSION APPEALS PANEL OVERTURNED THE DECISION SHE THEN SCOURED PAGE AFTER PAGE IN THE TELEPHONE BOOK LOOKING FOR A LAWYER WILLING TO APPEAL HER CASE IN STATE COURT NO TAKERS WHEN YOU HAVE AN ATTORNEY THEY KNOW THE LAW THEY KNOW WHEN TO MOVE FAST AND THEY WILL FIGHT FOR YOU MS FLORES SAYS IF YOU DON'T HAVE AN ATTORNEY YOU CAN'T DO ANYTHING I THINK THE LAW IS VERY UNFAIR SO FAR STATE COURTS HAVE AGREED MOST RECENTLY THE FOURTH COURT OF APPEALS IN SAN ANTONIO UPHELD A STATE DISTRICT JUDGE AND FOUND THE WORKERS' COMP REFORMS UNCONSTITUTIONAL IN A 4TO3 DECISION WHICH HAS BEEN APPEALED TO THE STATE SUPREME COURT THE COURT FOUND IT WAS ARBITRARY AND IRRATIONAL TO MAKE IT HARD FOR ONLY ONE SIDE TO HIRE A LAWYER THE APPEALS COURT FOUND MUCH IN THE LAW TO FAULT IT CONCLUDED THE AMA GUIDELINES ARE IRRELEVANT IN DETERMINING HOW MUCH A SPECIFIC INJURY IS LIKELY TO IMPAIR JOB PERFORMANCE AND THAT THE LIMITS ON JURY TRIALS DENIES ACCESS TO THE COURTS BACKERS WORRY THAT A LESSTHANRESOUNDING REJECTION OF THE LOWER COURTS' ARGUMENTS COULD CAST A PALL OVER THE LEGISLATURE'S SUNSET REVIEW OF THE WORKERS' COMP COMMISSION AND EVEN WITH A FAVORABLE COURT DECISION INDUSTRY EXPECTS A TOUGH LOBBYING EFFORT BY TRIAL LAWYERS AND ORGANIZED LABOR TO GUT THE LAW CONCEDES DICK BROWN AN INSURANCEINDUSTRY LOBBYIST IT'S GOING TO TAKE A COLOSSAL STRUGGLE TO GET THE SYSTEM THROUGH INTACT SEE LETTERS TO THE EDITOR INSURERS SAY WORKERS' COMP WORKS AND RATE WAR BRINGS BACK NONSUBSCRIBERS WSJ JAN 24 1994 SEE RELATED LETTER TEXAS JOURNAL LETTER TO THE EDITOR WORKERS' COMP COMPETENCE NEEDED WSJ APRIL 27 1994 9401190173 9402030185 YY94 MM02 YY94 MM04 9404260183 940426 TRACKING TRAVEL BY JACQUELINE SIMMONS IMAGINE WALKING INTO A DEPARTMENT STORE AND AUTOMATICALLY GETTING A 35 DISCOUNT ON ALL YOUR PURCHASES OR STAYING AT A SWANK HOTEL AND GETTING THREE NIGHTS FOR THE PRICE OF TWO WITH THE CANADIAN DOLLAR HOVERING AROUND C138 ITS LOWEST POINT AGAINST THE US DOLLAR IN ABOUT SEVEN YEARS SUCH BARGAINS ARE A REALITY FOR US TRAVELERS BUT MANY CANADIAN HOTELS DUTYFREE SHOPS AND OTHER BUSINESSES SAY AMERICANS SEEM PUT OFF BY THE RECENT COLD WEATHER RATHER THAN INSPIRED TO TAKE ADVANTAGE OF WARMING EXCHANGE RATES ACCORDING TO STATISTICS CANADA 887900 AMERICANS VISITED CANADA FOR ONE NIGHT OR LONGER DURING JANUARY AND FEBRUARY DOWN 06 FROM A YEAR EARLIER IN 1993 119 MILLION AMERICANS VISITED CANADA UP SLIGHTLY FROM 118 MILLION A YEAR EARLIER THE FEDERAL AGENCY REPORTS IN TORONTO THE FOUR SEASONS HOTELS INC HAS TAKEN TO REMINDING AMERICANS CALLING ABOUT RATES THAT THE US DOLLAR CAN AFFORD THEM MORE NIGHTS FOR LESS CHRISTOPHER SAVAGE PRESIDENT OF HERITAGE DUTYFREE SHOP SAYS A RECENT BOOST IN US VISITORS TO HIS SURREY BC SHOP IS LARGELY THE RESULT OF AMERICANS SPREADING NEWS OF CANADA'S LOW DOLLAR WORD OF MOUTH IS CANADA'S BEST BET MANY US TOURISTS DON'T REALIZE HOW LOW CANADA'S DOLLAR HAS FALLEN IT'S REALLY NOT UNTIL AMERICANS COME BACK AND SEE THEIR CREDIT CARDS THAT THEY FIND OUT QUICKLY HOW LOW THE CANADIAN DOLLAR IS SAYS DEBRA WARD GENERAL MANAGER OF TOURISM INDUSTRY ASSOCIATION OF CANADA THIS MONTH TOURISM INDUSTRY ASSOCIATION OF CANADA ROYAL BANK OF CANADA AND TRAVELFILE CANADA PLAN TO LAUNCH AN ONLINE SERVICE FOR TRAVEL AGENTS WORLDWIDE PROVIDING DAILY INFORMATION ABOUT THE COUNTRY'S EXCHANGE RATES AS LARGER NEWER CRUISE VESSELS FLOOD WATERWAYS BARGAIN RATES FROM SMALLER CRUISE LINES WILL START TO SURFACE THESE SHIPS WILL LIKELY COMMAND HIGHER FARES SQUEEZING THE MARGINAL SMALLER PLAYERS CRUISEINDUSTRY EXPERTS SAY THIS MONTH MIAMIBASED CARNIVAL WHICH CLAIMS TO BE NO 1 IN PASSENGER CAPACITY ANNOUNCED IT WILL BUILD THE WORLD'S LARGEST PASSENGER VESSEL BY 1996 IN ADDITION TO BUILDING THE 95000TON SHIP CARNIVAL SAYS IT WILL ADD THREE CARNIVAL CRUISE LINES SHIPS AND TWO HOLLAND AMERICA SHIPS TO ITS FLEET THE VESSELS IT SAYS WILL BOOST ITS PASSENGER CAPACITY BY 52 OVER THREE YEARS AND BRITISH SHIPPING COMPANY PENINSULAR AND ORIENTAL STEAM NAVIGATION'S PRINCESS CRUISES SAID IT PLANS A 100000TON VESSEL TO BE IN SERVICE IN 1997 PRINCESS SAYS THE SHIP WILL FEATURE UPDATED TECHNOLOGY INCLUDING A VIRTUALREALITY THEATER WHERE PASSENGERS LIVE OUT SUCH EXPERIENCES AS FLYING THROUGH THE GRAND CANYON OR EXPLORING A CORAL REEF THE CARIBBEANCRUISING SHIP WOULD CARRY 2600 PASSENGERS PRINCESS CRUISES CLAIMS THE SHIP AND TWO OTHERS IT PLANS TO BUILD OVER THE NEXT THREE YEARS WILL MAKE IT THE WORLD'S NO 2 CRUISE LINE IN PASSENGER CAPACITY THE BIG WILL GET BIGGER AND THE WEAK WEAKER SAYS JILL S KRUTICK A CRUISE INDUSTRY EXPERT AT SALOMON BROTHERS INC IN TERMS OF HUGE PRICE DISCOUNTS WE WILL SEE THE MORE MARGINAL COMPANIES LOWERING THEIR PRICES SOME SMALLER CRUISE LINES AREN'T WAITING FOR THE NEW SHIPS BEFORE PUSHING FOR CUSTOMERS DOLPHIN CRUISE LINE WHICH OPERATES THREE SHIPS TO THE CARIBBEAN SAYS IT HAS DISCOUNTS OF AS MUCH AS 900 ON SOME CRUISES BRINGING THE PRICE OF A ONEWEEK TRIP TO AS LITTLE AS 1000 PER PERSON THE MORE SUCCESSFUL THE BIG GUYS ARE IN KEEPING PRICES UP THE BETTER OFF I AM SAYS ED MASS SENIOR VICE PRESIDENT SALES AS THE TRAVEL ELITE GROW FONDER OF TROTTING OFF TO COUNTRIES LIKE CHINA INDIA AND VIETNAM TRAVEL AGENTS ARE REDEFINING THE MEANING OF LUXURY TRAVEL HIGHINCOME TRAVELERS WHO HAVE GROWN WEARY OF THE BIANNUAL EUROPEAN OR ISLAND TRIP ARE SHOWING UP IN DEVELOPING COUNTRIES TRAVELINDUSTRY EXPERTS SAY IT'S THE EXCLUSIVENESS OF IT IF YOU'RE IN THIS INCOME BRACKET IT'S NICE TO SAY I'VE BEEN TO CHINA OR VIETNAM' SAYS PAUL RUDEN SENIOR VICE PRESIDENT FOR LEGAL AND INDUSTRY AFFAIRS AT THE AMERICAN SOCIETY OF TRAVEL AGENTS IN ALEXANDRIA VA BUT THE INDUSTRY ALSO WARNS TRAVELERS NOT TO EXPECT ALL THE FRILLS FOR THE 7000AWEEK AND UP THEY'LL PAY FOR SUCH TRIPS FOR EXAMPLE YOU SHOULDN'T EXPECT TELEPHONE AND FAXING SERVICES HEALTH CLUBS UPTODATE NEWS AND CERTAIN AMENITIES LIKE BATHROBES OR EXTRA PILLOWS OFTEN TOPOFTHELINE ACCOMMODATIONS IN DEVELOPING COUNTRIES ARE EITHER OLD OR IF NEW DON'T MEET THE STANDARDS LUXURY TRAVELERS ARE ACCUSTOMED TO SAYS NANCY DUNNAN EDITOR OF THE CONSUMER NEWSLETTER TRAVEL SMART ANNEMARIE VICTORY OF ANNEMARIE VICTORY ORGANIZATION AN AGENCY THAT SPECIALIZES IN LUXURY TRAVEL EMPHASIZES FAMILIARITY WITH A DEVELOPING COUNTRY'S STANDARD OF LIVING BEFORE HOPPING ON AN AIRPLANE WHEN CLIENTS GET SURPRISES IT RUINS THE TRIP PREPARATION AHEAD OF TIME IS THE KEY SHE SAYS JEANNE EPPING OF SANTA CRUZ TRAVEL WHICH ORGANIZES LUXURY VACATIONS TO PLACES LIKE THE INDONESIAN ISLANDS BALI AND INDIA ALSO NOTES THAT THIS GROUP OF TRAVELERS MUST BE PREPARED TO GIVE UP SOME INDEPENDENCE SIGHTSEEING AND STROLLING MOSTLY IN GROUPS OR WITH GUIDES STU FEILER A JEWISH HISTORIAN IN CHICAGO IS ORGANIZING AN 11DAY TOUR OF OSKAR SCHINDLER'S POLAND TAKING VISITORS TO SITES FEATURED IN THE FILM SCHINDLER'S LIST THE 1500 TRIP STARTS THE FIRST WEEK OF JUNE INDEPENDENT DEALERS ASSOCIATION THE TRADE GROUP FOR NORTH AMERICAN TRAVELING VENDORS AND CONCESSIONAIRES SAYS THE TOP 10 FLEA MARKETS IN NORTH AMERICA INCLUDE APACHE PARK & SWAP APACHE JUNCTION ARIZ ROSE BOWL FLEA MARKET PASADENA CALIF FLEA MARKET SAN JOSE CALIF AND FLEA WORLD ORLANDO FLA 9404260182 940426 WHO'S NEWS PENTAIR INC PENTAIR INC ST PAUL MINN CHARLES A HAGGERTY CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF WESTERN DIGITAL CORP WAS ELECTED A DIRECTOR OF THIS MAKER OF INDUSTRIAL PRODUCTS AND PAPER AND PORTABLE POWER TOOLS SUCCEEDING H WILLIAM LURTON WHO RETIRED 9404260180 940426 LEGAL BEAT BIG FINES ARE REPLACING SON OF SAM LAWS BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL WHEN A JUDGE ADDED A 18 MILLION FINE TO ARTHUR SEALE'S PRISON SENTENCE IN THE KIDNAPMURDER OF EXXON CORP EXECUTIVE SIDNEY J RESO THE JUDGE DIDN'T EXPECT MR SEALE TO BE ABLE TO PAY IT BUT THE FINE HAD A PRACTICAL PURPOSE NONETHELESS TO MAKE SURE THAT THE DEBTRIDDEN MR SEALE WOULD NEVER BE ABLE TO PROFIT FROM PUBLISHING HIS STORY OR SELLING IT TO HOLLYWOOD UNTIL RECENTLY SUCH EARNINGS COULD HAVE BEEN PREVENTED AS A RESULT OF A SOCALLED SON OF SAM LAW WHICH MOST STATES HAD PASSED TO MAKE SURE THAT CRIMINALS WHO FIND FAME DON'T ALSO MAKE A FORTUNE BUT THE US SUPREME COURT HELD NEW YORK'S VERSION OF THE LAW UNCONSTITUTIONAL IN 1991 BECAUSE THE JUSTICES SAID IT VIOLATED THE FIRST AMENDMENT GUARANTEE OF FREE SPEECH AND THAT DECISION MAKES IT LIKELY THAT SIMILAR LAWS IN OTHER STATES ARE NOW UNCONSTITUTIONAL AS WELL AS A RESULT SOME COURTS HAVE CHANGED TACTICS INSTEAD OF INVOKING A STATUTE THAT PREVENTS PROFITING FROM BOOKS OR MOVIES ABOUT A CRIME THEY ARE SIMPLY IMPOSING CRIMINAL FINES LARGE ENOUGH TO OFFSET ANY POTENTIAL MEDIARELATED EARNINGS BECAUSE THE FINES DON'T SPECIFICALLY TARGET SPEECHRELATED INCOME THEY DON'T VIOLATE FREESPEECH RIGHTS ATTORNEYS SAY OBVIOUSLY THERE IS MONEY TO BE MADE IN CAPITALIZING UPON CRIMINAL ACTIVITY A FEDERAL APPEALS COURT SAID THIS MONTH IN APPROVING THE CONCEPT OF SUCH FINES AGAINST MR SEALE AND HIS WIFE AND CODEFENDANT IRENE SEALE WHO WAS ASSESSED 500000 ARTHUR SEALE WAS CERTAINLY AWARE OF THIS POTENTIAL THE COURT NOTED AND HAD AT LEAST TWO BOOK OFFERS AT THE TIME OF SENTENCING FOR THE 1992 CRIME THE PHILADELPHIABASED COURT SAID HOWEVER THAT THE FINES WOULD HAVE TO BE RECALIBRATED BECAUSE THE SENTENCING JUDGE SHOULD HAVE TAKEN INTO ACCOUNT SUCH FACTORS AS WHETHER MR SEALE WOULD NEED TO PAY A COLLABORATOR IF HE SOLD HIS STORY AND HOW MARKETABLE MRS SEALE'S VERSION MIGHT TURN OUT TO BE NEITHER SEALE HAS SOLD THE STORY IN OTHER CASES PROSECUTORS HAVE WRITTEN HEFTY FINES INTO PLEA BARGAINS IN PORTLAND ORE PROSECUTORS SOUGHT 160000 IN FINES FROM FIGURE SKATER TONYA HARDING AND 100000 FROM HER EXHUSBAND JEFF GILLOOLY IN AN ATTEMPT TO OFFSET EARNINGS FROM BOOKS AND MADEFORTV MOVIES BOTH HAVE HOWEVER REPORTEDLY EARNED MORE THAN THESE SUMS ALREADY FROM TV APPEARANCES KATHERINE ANN POWER THE '60S RADICAL WHO RECENTLY RESURFACED IN OREGON FACED SOMETHING MORE SEVERE THAN A FINE THE JUDGE IN HER CASE SPECIFIED THAT IN ADDITION TO AN EIGHTTO12YEAR PRISON SENTENCE AS A CONDITION OF HER 20YEAR PROBATION FOR MANSLAUGHTER AND ARMED ROBBERY MS POWER WOULD GO TO PRISON FOR LIFE IF SHE PROFITED FROM SELLING HER STORY FIRST AMENDMENT LAWYERS SAY THE PROVISO PROBABLY IS UNCONSTITUTIONAL AND A STATE APPEALS COURT HAS AGREED TO HEAR ARGUMENTS ON THE ISSUE ONE CONCERN ABOUT THE NEW TACTICS IS THAT JUDGES AND PROSECUTORS CAN BE WAY OFF BASE WHEN THEY GUESS AT A CRIMINAL'S MARKETABILITY SEVERAL PUBLISHERS SAY FOR INSTANCE THAT 175 MILLION SEEMED LIKE A LOT FOR MR SEALE'S STORY IF YOU FIND A JUDGE WHO CAN ACCURATELY PREDICT MARKET DEMAND FOR A BOOK SEND US HIS RESUME SAYS ANDREW GIANGOLA A SPOKESMAN FOR PARAMOUNT PUBLISHING/SIMON & SCHUSTER INC IN CONTRAST PROSECUTORS MAY HAVE GUESSED TOO LOW IN THE GILLOOLY CASE MR GILLOOLY AGREED TO A 100000 FINE BUT REPORTEDLY MADE AT LEAST 175000 FROM AN EXCLUSIVE INTERVIEW ON A CURRENT AFFAIR GIVEN THE MONEY HE HAS OBTAINED WE MAY BE LOOKING TO INCREASE THE FINES AT SENTENCING SAYS NORMAN W FRINK CHIEF DEPUTY DISTRICT ATTORNEY FOR MULTNOMAH COUNTY OREGON HE ADDS THOUGH THAT HE BELIEVES MR GILLOOLY STILL FACES SUBSTANTIAL LEGAL BILLS MS HARDING WHO HAS ALREADY BEEN SENTENCED REPORTEDLY MADE HUNDREDS OF THOUSANDS OF DOLLARS FROM AN INTERVIEW WITH INSIDE EDITION SHE HAS SINCE GIVEN OTHER INTERVIEWS FOR UNDISCLOSED AMOUNTS MR FRINK SAYS HE IS SATISFIED THAT PROSECUTORS HAVE TAPPED HER OUT AS MUCH AS THEY POSSIBLY CAN ROBERT C WEAVER JR A PORTLAND ATTORNEY FOR MS HARDING SAYS HE NEVER THOUGHT THE FINE WAS DESIGNED TO OFFSET MEDIA EARNINGS I CAN TELL YOU THAT SHE DOES NOT HAVE ENOUGH MONEY TO PAY THE FINES AT THIS POINT HE ADDS IF SUCH FINES AREN'T PAID THE CRIMINALS WILL HAVE LIENS HANGING OVER THEIR HEADS A LOT OF DEFENDANTS WHO GET CONVICTED OF CRIMES HAVE FINES HANGING OVER THEM WHICH THEY CANNOT PAY SAYS VICTOR ASHRAFI CHIEF OF THE CRIMINAL DIVISION IN THE US ATTORNEY'S OFFICE IN NEWARK NJ UNFORTUNATELY IT'S NOT THE MOST IMPORTANT THING TO THEM IF THE CRIMINALS EVER DO COME INTO MONEY PROSECUTORS COULD ENFORCE THE LIENS IN GENERAL CRIMINALDEFENSE ATTORNEYS DECRY THE PUBLIC'S FOCUS ON BOOK AND MOVIE DEALS AND ARGUE THAT FEW LAWBREAKERS EVER MAKE A DIME FROM SUCH AGREEMENTS THE ASSUMPTION IN EVERY CASE IS THAT WE'RE GOING TO HAVE A GLOATING CRIMINAL A GREEDY PUBLISHER AND A GHOULISH PUBLIC AND THEREFORE EVERY CRIME WILL PRODUCE AN ENORMOUS AMOUNT OF MONEY SAYS NEW YORK ATTORNEY LEON FRIEDMAN WHOSE CLIENTS HAVE INCLUDED JEAN HARRIS WHO KILLED DIET MOGUL HERMAN TARNOWER IN FACT IT'S JUST NOT TRUE HE ADDS THAT MS HARRIS TURNED OVER 100000 IN BOOK PROFITS TO A CHARITY FOR CHILDREN OF WOMEN IN PRISON IN BEDFORD HILLS NY EVEN AS COURTS WORK HARDER TO CAPTURE CRIMINALS' EARNINGS SOME VICTIMS' FAMILIES ACCUSE CRIMINALS OF GETTING AROUND NOPROFIT CLAUSES BY USING RELATIVES AS PROXIES SERIAL KILLER JEFFREY L DAHMER FOR INSTANCE WOULD HAVE TO USE ANY PROFIT FROM SELLING HIS STORY TO PAY MORE THAN 100 MILLION IN CIVIL JUDGMENTS WON BY FAMILIES OF HIS VICTIMS HE HASN'T SOLD HIS STORY BUT HIS FATHER LIONEL DAHMER WROTE A BOOK FOR WHICH HE GOT A 150000 ADVANCE ACCORDING TO THOMAS M JACOBSON AN ATTORNEY FOR EIGHT FAMILIES OF VICTIMS THE PUBLISHER WILLIAM MORROW & CO WOULDN'T CONFIRM THE AMOUNT LIONEL DAHMER HAS PROMISED THAT A PORTION OF THE PROCEEDS WILL GO TO VICTIMS' FAMILIES MR SEALE NOT ONLY TRANSFERRED RIGHTS TO SELL HIS STORY TO HIS FATHER BUT SPECIFIED THAT BOOK PROFITS WOULD BE DIVIDED AMONG HIS ATTORNEY AND THE SEALES' TWO CHILDREN AS WELL AS THE VICTIM'S FAMILY THE VICTIM'S WIDOW HAS FILED A 5 MILLION CIVIL SUIT AGAINST THE COUPLE 9404260179 940426 SMALL STOCK FOCUS STOCKS PRESS HIGHER FOR A THIRD SESSION PUSHED BY EARNINGS REPORTS AND RATES BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCKS PRESSED HIGHER FOR A THIRDCONSECUTIVE SESSION SPURRED BY FALLING INTEREST RATES AND ENCOURAGING EARNINGS REPORTS THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION ISSUES TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES JUMPED 277 POINTS OR 112 TO 24932 NEAR ITS SESSION HIGH THE NASDAQ COMPOSITE INDEX ROSE 824 POINTS OR 114 TO 73080 BOTH INDEXES BEGAN THE DAY JUST MODESTLY HIGHER BUT BALLOONED AS BONDS RECOVERED FROM A WEAK START THE LONG BOND STARTED OFF SLIGHTLY LOWER BUT ENDED 3/4 OF A POINT HIGHER FORCING ITS YIELD DOWN TO 715 TRADERS SAID SHORT COVERING BUY PROGRAMS ON THE BIG BOARD AND A 57POINT ADVANCE BY THE DOW JONES INDUSTRIAL AVERAGE ALL HELPED SMALLER STOCKS THE DOW INDUSTRIALS FINISHED AT 370578 AND ITS 50POINT JUMP IN LATE TRADING TRIGGERED THE BIG BOARD'S COLLAR RULE WHICH RESTRICTS PROGRAM TRADING WHEN THE INDUSTRIAL AVERAGE RISES OR FALLS 50 POINTS FROM THE PREVIOUS DAY'S CLOSE ADVANCING NASDAQ ISSUES OUTDID DECLINERS 1718 TO 1355 ON LIGHT NASDAQ NATIONAL MARKET VOLUME OF 213210400 SHARES AND TOTAL VOLUME OF 238293000 ON FRIDAY NASDAQ NATIONAL MARKET VOLUME WAS AT 282876900 SHARES AND OVERALL TURN OVER REGISTERED 319542700 ALTHOUGH ACTIVITY WAS SUBDUED YESTERDAY SOME MARKET WATCHERS EXPECT MORE INVESTORS TO JUMP INTO THE FRAY TODAY TO COMPENSATE FOR AN ABBREVIATED WEEK THE NEW YORK STOCK EXCHANGE THE NASDAQ STOCK MARKET AND THE AMERICAN STOCK EXCHANGE ALONG WITH OTHER MARKETS SAID YESTERDAY THAT THEY WILL CLOSE WEDNESDAY IN REMEMBRANCE OF FORMER PRESIDENT RICHARD M NIXON WHO DIED FRIDAY PRESIDENT CLINTON HAS DECLARED WEDNESDAY A NATIONAL DAY OF MOURNING JIM THOMAS VICE PRESIDENT OF EQUITY TRADING AT DAVENPORT & CO CALLED THE DECISIONS BY THE MARKETS REALLY A SURPRISE BUT SAID TRADING WILL PROBABLY BE INFLATED TODAY AS A RESULT MR THOMAS ADDED THAT INVESTOR PESSIMISM ABOUT CLIMBING RATES APPEARS TO BE DISSIPATING ALLOWING THE FOCUS TO SHIFT TO EARNINGS REPORTS WHICH HAVE BEEN FAIRLY HEALTHY OVERALL ROBERT E TURNER CHAIRMAN AND CHIEF INVESTMENT OFFICER OF TURNER INVESTMENT PARTNERS INC IN BERWYN PA WHICH MANAGES 2 BILLION IN LARGE AND SMALLCAP STOCK FUNDS SAID HE THINKS THE RUSSELL 2000 AND NASDAQ COMPOSITE INDEX PUT A BOTTOM IN PLACE WEDNESDAY WHEN THEY CLOSED AT YEARTODATE LOWS HE SAID ABOUT 90 OF THE 125 ISSUES IN HIS SMALLCAP STOCK UNIVERSE MET OR EXCEEDED EARNINGS EXPECTATIONS BUT ABOUT HALF OF THOSE STILL SAW A DECLINE IN THEIR STOCK PRICES AFTER POSTING GOOD EARNINGS MR TURNER SAID HE BLAMES THE RATE ENVIRONMENT AND THE SHARPNESS OF THE RECENT SETBACK ALTHOUGH HE DOESN'T EXPECT NEW HIGHS TO BE MADE OVERNIGHT HE SAID THE FACT THAT STOCKS ARE NOW RESPONDING MORE FAVORABLY TO EARNINGS IS A GOOD SIGN IN EARNINGS NEWS WISCONSIN CENTRAL TRANSPORTATION TACKED ON 1 TO 72 THE ROSEMONT ILL RAILROAD FREIGHT COMPANY SAID ITS FIRSTQUARTER NET INCOME WAS 73 MILLION OR 88 CENTS A SHARE COMPARED WITH OPERATING EARNINGS OF 23 MILLION OR 28 CENTS A YEAR EARLIER BROADWAY & SEYMOUR CLIMBED 1 TO 14 1/4 THE CHARLOTTE NC INFORMATION TECHNOLOGY COMPANY SAID ITS FIRSTQUARTER EARNINGS ROSE TO 16 CENTS A SHARE FROM 11 CENTS A YEAR EARLIER ANALYSTS HAD EXPECTED NET INCOME OF 12 CENTS FOR THE LATEST PERIOD NAUTICA ENTERPRISES NEW YORK SHOT UP 1 1/4 TO 27 1/2 THE MEN'S CLOTHING DESIGNER SAID ITS FISCAL FOURTHQUARTER EARNINGS ROSE TO 38 CENTS A SHARE FROM 27 CENTS LAST YEAR OAK INDUSTRIES POPPED 2 HIGHER TO 20 ON THE BIG BOARD THE WALTHAM MASS MAKER OF CONNECTORS FOR CABLE TELEVISION SYSTEMS POSTED FIRSTQUARTER EARNINGS OF 40 CENTS A SHARE UP FROM 28 CENTS LAST YEAR WALL STREET'S ESTIMATES HAD CALLED FOR NET INCOME OF 29 CENTS ALSO ON THE BIG BOARD CDI A PHILADELPHIA TECHNICAL PERSONNEL RECRUITER INCREASED 1 1/2 TO 13 3/4 THE COMPANY SAID ITS FIRSTQUARTER EARNINGS JUMPED TO 20 CENTS FROM 5 CENTS IN THE SAME PERIOD A YEAR EARLIER PORTEC OAK BROOK ILL ADDED 1 5/8 TO 14 ON THE BIG BOARD USA TODAY COLUMNIST DAN DORFMAN REPORTED THAT THE RAILROAD TRACK COMPONENTS MAKER IS EXPECTED TO POST BETTERTHANFORECAST FIRSTQUARTER EARNINGS OF ABOUT 47 CENTS A SHARE TODAY UP FROM 28 CENTS LAST YEAR BUT BIG BOARDLISTED PITTSTON MINERALS GROUP DROPPED 1 5/8 TO 18 3/4 LATE FRIDAY THE STAMFORD CONN COMPANY SAID ITS FIRSTQUARTER LOSS WIDENED TO 996 A SHARE FROM 841 ON CHARGES LAST YEAR IN ADDITION PITTSTON SAID IT WILL CLOSE CERTAIN UNDERGROUND MINES AND RELATED PREPARATION PLANTS AS PART OF ITS STRATEGY TO LESSEN EXPOSURE TO THE METALLURGICAL COAL MARKETS ELSEWHERE A POSITIVE MENTION IN THIS WEEK'S ISSUE OF BARRON'S LIFTED THOMAS INDUSTRIES 1 1/2 TO 15 ON THE BIG BOARD THE ARTICLE FOCUSES ON THE LOUISVILLE KY CONCERN'S LIGHTING SUBSIDIARY AND HOW THE COMPANY HAS BECOME A MAJOR PLAYER IN THE LIGHTING BUSINESS THROUGH A STRING OF ACQUISITIONS NEW YORK STOCK EXCHANGETRADED MARGARETTEN FINANCIAL PERTH AMBOY NJ SOARED 4 1/8 TO 19 1/8 THE COMPANY SAID IT'S IN DISCUSSIONS WITH SEVERAL MAJOR FINANCIAL INSTITUTIONS REGARDING ITS POSSIBLE ACQUISITION AGCO A NORCROSS GA FARM EQUIPMENT MAKER ROSE 2 1/8 TO 35 1/4 ON THE BIG BOARD THE COMPANY SAID IT'S IN TALKS TO PURCHASE VARITY'S MASSEY FERGUSON BUSINESS VARITY A BUFFALO NY AUTOMOTIVE COMPONENTS CONCERN GAINED 1 1/4 TO 39 1/2 ALSO IN BIG BOARD TRADING ON THE AMERICAN STOCK EXCHANGE BETA WELL SERVICE ADVANCED 7/8 TO 7 5/8 THE CALGARY ALBERTA OIL AND GAS EXPLORATION COMPANY SAID IT COMPLETED THE PURCHASE OF INTERESTS OF JOINT VENTURES IN THE REPUBLICS OF KOMI AND KAZAKHSTAN IN THE COMMONWEALTH OF INDEPENDENT STATES SHARES OF BETA APPARENTLY WEREN'T AFFECTED BY NEWS THAT THE AMERICAN STOCK EXCHANGE SAID IT'S INVESTIGATING TRADING IRREGULARITIES IN THE COMPANY'S STOCK 9404260172 940426 WHO'S NEWS GEORGE K BAUM & CO GEORGE K BAUM & CO KANSAS CITY MO JONATHAN E BAUM 33 YEARS OLD WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS INVESTMENT BANKING FIRM MR BAUM SUCCEEDS G KENNETH BAUM WHO WILL SERVE AS CHAIRMAN EMERITUS 9404260171 940426 TECHNOLOGY AND HEALTH IBM EXPECTS YEARLY PROFIT FOR FIRST TIME SINCE 90 GERSTNER TELLS ANNUAL MEETING BY BART ZIEGLER STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO INTERNATIONAL BUSINESS MACHINES CORP'S CHAIRMAN LOUIS V GERSTNER JR TOLD SHAREHOLDERS THAT THE STRUGGLING COMPUTER MAKER EXPECTS TO BE PROFITABLE THIS YEAR ITS FIRST FULL YEAR OF BLACK INK SINCE 1990 LAST WEEK IBM REPORTED A FIRSTQUARTER PROFIT OF 392 MILLION FAR STRONGER THAN INDUSTRY ANALYSTS EXPECTED THAT FOLLOWED FOURTHQUARTER EARNINGS OF 382 MILLION THE BACKTOBACK QUARTERLY PROFITS FOLLOWED SIX LOSING QUARTERS AS A MASSIVE COSTCUTTING CAMPAIGN BEGAN TO KICK IN MR GERSTNER SPEAKING AT THE COMPANY'S ANNUAL MEETING HERE SEEMED MORE UPBEAT ABOUT IBM'S PROSPECTS THAN A MONTH AGO WHEN HE GAVE A MAJOR PRESENTATION TO WALL STREET ANALYSTS IBM MR GERSTNER SAID IS NOT IN A POSITION TO BLOW THE HORN AND DECLARE VICTORY BUT I THINK IT'S SAFE TO SAY THE FUNERAL DIRGE IS OVER MOST ANALYSTS AGREE IBM IS EXPECTED TO EARN 12 BILLION THIS YEAR ACCORDING TO A MEAN OF 24 ANALYSTS' PROJECTIONS BY ZACK'S CONSENSUS REPORTS THAT FOLLOWS A STAGGERING LOSS OF 81 BILLION LAST YEAR LARGELY AS A RESULT OF A RESTRUCTURING CHARGE OF NEARLY 9 BILLION IBM'S STOCK SURGED ON LAST THURSDAY'S EARNINGS ANNOUNCEMENT YESTERDAY THE STOCK ROSE 50 CENTS TO 5925 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING BUT NOT ALL OF THE DISCUSSION INSIDE THE CAVERNOUS CONVENTIONCENTER HALL WAS UPBEAT MR GERSTNER FACING 700 SHAREHOLDERS AFTER HIS FIRST FULL YEAR IN THE JOB FIELDED TOUGH QUESTIONS ABOUT EMPLOYEE MORALE AND THE MULTIMILLIONDOLLAR COMPENSATION THAT HE AND THE COMPUTER MAKER'S FORMER CHAIRMAN RECEIVED MR GERSTNER SAID HE DIDN'T PARTICIPATE IN THE IBM BOARD'S DISCUSSIONS LAST YEAR WHEN IT AWARDED THE COMPANY'S RETIRED CHAIRMAN JOHN F AKERS WHO LEFT THE COMPANY UNDER PRESSURE MORE THAN 3 MILLION IN SALARY STOCK OPTIONS AND OTHER PAYMENTS INCLUDING 925000 IN RECOGNITION OF 33 YEARS OF SERVICE TO THE COMPANY BUT MR GERSTNER SAID HE SUPPORTED THE DECISION TRANSITIONS OF THE KIND THIS COMPANY WENT THROUGH LAST APRIL ARE DANGEROUS IF NOT HANDLED WELL MR GERSTNER SAID THEY USED THEIR BEST JUDGMENT BUT MR GERSTNER DUCKED QUESTIONS ABOUT HIS OWN SALARY BEYOND SAYING THAT HIS COMPENSATION AS WELL AS THAT OF OTHER TOP IBM EXECUTIVES IS TIED IN PART TO HOW WELL THE COMPANY DOES FINANCIALLY MR GERSTNER RECEIVES A SALARY OF 2 MILLION AN ANNUAL INCENTIVE BONUS OF AT LEAST 15 MILLION A LONGTERM INCENTIVE OF AT LEAST 500000 AS WELL AS STOCK OPTIONS HE ALSO RECEIVED 43 MILLION LAST YEAR TO COMPENSATE FOR BENEFITS THAT HE FORFEITED FROM HIS FORMER EMPLOYER RJR NABISCO HOLDINGS CORP LEE CONRAD A STOCKHOLDER AND HEAD OF A GROUP CALLED IBM WORKERS UNITED SAID THE EMPLOYEES' STANDARD OF LIVING HAS BEEN DECLINING WHILE THAT OF IBM EXECUTIVES SEEMS TO BE RISING THAT COMBINED WITH THOUSANDS OF LAYOFFS PLANT CLOSINGS AND OTHER CUTBACKS HAS SEVERELY DAMAGED EMPLOYEE MORALE MR CONRAD SAID MR GERSTNER SAID HE AGREED THAT MORALE IS A PROBLEM BUT HE SAID THE RETRENCHMENT WAS NECESSARY TO ENSURE IBM'S SURVIVAL AND THE FUTURE OF ITS REMAINING JOBS HE ADDED THAT THERE WAS NO QUICK FIX FOR MORALE THE BEST THING THE COMPANY CAN DO HE SAID IS TO CONTINUE TO REPORT PROFITS JUST SENDING OUT WARM AND CUDDLY LETTERS FROM THE CHAIRMAN SAYING EVERYTHING IS OK DOESN'T MATTER MR GERSTNER SAID 9404260170 940426 WHO'S NEWS CHENOK PRESIDENT OF CPA INSTITUTE TO LEAVE IN 1995 BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PHILIP B CHENOK PRESIDENT OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SAID HE WON'T SEEK REELECTION TO A FOURTH FIVEYEAR TERM IN MID1995 THE 318000MEMBER INSTITUTE THE LARGEST AND MOST POWERFUL PROFESSIONAL GROUP FOR ACCOUNTANTS ISSUES AUDITING STANDARDS AND SOME ACCOUNTING RULES MR CHENOK 59 YEARS OLD SAID HE PLANS TO TEACH AT THE COLLEGE LEVEL SERVE ON CORPORATE BOARDS AND CONSULT WITH ACCOUNTING FIRMS AFTER HIS TERM EXPIRES ON JUNE 30 1995 BEING PRESIDENT OF THE INSTITUTE HAS BEEN A RATHER INTENSE JOB IN RECENT YEARS AND IT'S TIME FOR ME TO DO SOMETHING DIFFERENT HE ADDED DURING MR CHENOK'S TENURE THE INSTITUTE FORCED ACCCOUNTING FIRMS TO UNDERGO REVIEWS TO IMPROVE THE QUALITY OF THEIR AUDITS THE INSTITUTE ALSO TOOK STEPS SUCH AS PROVIDING A TECHNICAL HOTLINE AND MORE EDUCATIONAL OPPORTUNITIES TO HELP MEMBERS SHARPEN THEIR PROFESSIONAL SKILLS BUT MR CHENOK AND THE INSTITUTE'S STAFF OF MORE THAN 700 HAVE BEEN CRITICIZED FOR FAILING TO CONVINCE CONGRESS EARLIER TO PROVIDE ACCOUNTANTS WITH RELIEF FROM MALPRACTICE LITIGATION THERE IS CURRENTLY A BILL BEFORE CONGRESS THAT WOULD SET LIMITS ON SUITS AGAINST ACCOUNTANTS MOREOVER THE INSTITUTE'S PROGRAM OF CONTINUING PROFESSIONAL EDUCATION HAS LOST MONEY OVER THE PAST TWO YEARS MR CHENOK HAD TO PRESIDE OVER THE INSTITUTE DURING A PERIOD WHEN NUMEROUS FIRMS WERE ACCUSED OF FAULTY AUDITS AND CONSEQUENTLY FACED LARGE LAWSUITS I HAVE BEEN PRESIDENT DURING A VERY DIFFICULT AND ALSO A VERY REWARDING PERIOD HE SAID MR CHENOK HAS BEEN ABLE TO RESTORE THE INSTITUTION'S FINANCIAL HEALTH OVER THE PAST TWO YEARS THE INSTITUTE REPORTED DEFICITS OF 29 MILLION IN THE FISCAL YEAR ENDED JULY 31 1991 AND 53 MILLION IN FISCAL 1992 A YEAR THAT INCLUDED A 65 MILLION CHARGE RELATED TO OFFICE RELOCATION BUT WITH SALARY FREEZES IN 1993 AND A 10 STAFF REDUCTION FROM THE EARLY 1980S THE INSTITUTE REPORTED EXCESS REVENUE OF 25 MILLION LAST FISCAL YEAR AND WE EXPECT TO REPORT AN EXCESS OF 25 MILLION TO 3 MILLION THIS FISCAL YEAR MR CHENOK SAID BEFORE JOINING THE INSTITUTE AS PRESIDENT MR CHENOK WORKED FOR MAJOR ACCOUNTING FIRMS DURING THAT PERIOD HE WAS ALSO CHAIRMAN OF THE INSTITUTE'S POWERFUL AUDITING STANDARDS BOARD WHICH ISSUES AUDIT RULES EARLIER HE TAUGHT ACCOUNTING AT PACE UNIVERSITY IN NEW YORK 9404260169 940426 WHO'S NEWS AMERICAN STORES CO AMERICAN STORES CO SALT LAKE CITY ROBERT P HERMANNS 50 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT FOOD FOR THIS SUPERMARKET CHAIN MR HERMANNS WHO HAD BEEN AMERICAN STORES' EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER FOR NEWBUSINESS DEVELOPMENT SUCCEEDS LAWRENCE A DEL SANTO WHO RESIGNED AMERICAN STORES CO NAMED ROBERT P HERMANNS SENIOR EXECUTIVE VICE PRESIDENT/CHIEF OPERATING OFFICER FOOD THE NEW TITLE OF MR HERMANNS WAS INCORRECTLY GIVEN IN AN ARTICLE TUESDAY 9404260168 940426 WHO'S NEWS GTE CORP GTE CORP STAMFORD CONN BRUCE REDDITT 43 YEARS OLD WAS NAMED CORPORATE VICE PRESIDENT PUBLIC AFFAIRS AND COMMUNICATIONS A NEW POSITION AT THE TELECOMMUNICATIONS COMPANY MR REDDITT HAD BEEN VICE PRESIDENT PUBLIC AFFAIRS FOR GTE'S TELEPHONE OPERATIONS GROUP AND PREVIOUSLY WAS VICE PRESIDENT CORPORATE COMMUNICATIONS AT CONTEL CORP WHICH MERGED WITH GTE IN 1991 9404260167 940426 ENTERPRISE SYLVAN LEARNING TO AVOID STAGNATION ACTS TO DIVERSIFY FIRM IS GAMBLING ON COMPUTERIZED TESTING REMEDIALSKILLS CONTRACTS BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL R CHRISTOPHER HOEHNSARIC AND DOUGLAS L BECKER BELIEVE THEY CAN BECOME BIG PLAYERS IN EDUCATIONAL SERVICES EVEN THOUGH NEITHER EVEN HAS A COLLEGE DEGREE MR HOEHNSARIC 31 YEARS OLD IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SYLVAN LEARNING SYSTEMS INC AND MR BECKER 28 IS THE PRESIDENT MR HOEHNSARIC DROPPED OUT OF JOHNS HOPKINS UNIVERSITY MR BECKER SAYS HE DECIDED TO SKIP COLLEGE AFTER HARVARD UNIVERSITY ACCEPTED HIM THE PARTNERS WANT TO BUILD SMALL SYLVAN INTO A HUGE ENTERPRISE THEY HAVE A LONG WAY TO GO THE COLUMBIA MD COMPANY REPORTED A LOSS OF 363833 LAST YEAR ON REVENUE OF 181 MILLION BUT NOW THE PARTNERS ARE TRYING TO AVOID STAGNATION BY BRANCHING OUT IN NEW DIRECTIONS THIS BOLD STRATEGY OFTEN WORKS YET SYLVAN RISKS THROWING AWAY MILLIONS OF DOLLARS IN ANTICIPATION OF BUSINESS THAT MAY NEVER MATERIALIZE SYLVAN MAINLY FRANCHISES TUTORING CENTERS WHERE MANY AFFLUENT PARENTS PAY BETWEEN 1200 AND 1800 TO SHORE UP THEIR CHILDREN'S STUDY SKILLS WITH NEARLY 500 FRANCHISED UNITS ALREADY IN OPERATION IN THE US AND CANADA SYLVAN IS RUNNING OUT OF DESIRABLE AREAS FOR ADDITIONAL FRANCHISEES SO THE COMPANY IS COUNTING ON TWO NEW THRUSTS TO HASTEN ITS GROWTH COMPUTERIZED TESTING AND REMEDIALSKILLS CONTRACTS SYLVAN ALREADY HAS INSTALLED ELECTRONIC EQUIPMENT IN MANY TUTORING CENTERS TO DELIVER COMPUTERIZED VERSIONS OF SOME STANDARDIZED TESTS FOR GRADUATESCHOOL ADMISSION AND PROFESSIONAL LICENSING AND CERTIFICATION FOR EXAMPLE ALL CANDIDATES FOR LICENSING AS REGISTERED OR PRACTICAL NURSES IN THE US NOW MUST TAKE A COMPUTERIZED TEST THROUGH SYLVAN THE COMPANY SAYS IT ALSO HAS CONTRACTS WITH THE NONPROFIT EDUCATIONAL TESTING SERVICE PRINCETON NJ TO DELIVER COMPUTERIZED TESTS IN THE US AND MORE THAN 170 COUNTRIES WITHIN FIVE YEARS EARLIER THIS MONTH SYLVAN ANNOUNCED THAT ETS HAD INVESTED 15 MILLION IN NEWLY ISSUED SYLVAN STOCK AND HAD TAKEN OPTIONS TO INVEST A FURTHER 4 MILLION IN THE FUTURE PUBLIC INVESTORS WHO HAVE OWNED A SYLVAN STAKE SINCE DECEMBER ARE ALSO BETTING HEAVILY THAT THE COMPANY'S NEW STRATEGY WILL SUCCEED THE STOCK CLOSED IN NASDAQ TRADING YESTERDAY AT 17625 GIVING SYLVAN'S 82 MILLION SHARES A VALUATION OF 1445 MILLION SYLVAN'S OTHER NEW AREA INVOLVES REMEDIAL READING AND MATH CLASSES FOR STUDENTS AND EMPLOYEES WHERE THEY LEARN OR WORK AS MESSRS HOEHNSARIC AND BECKER SEE IT EDUCATION SIMPLY IS TOO IMPORTANT TO BE LEFT TO SCHOOLS PUBLICSCHOOL OFFICIALS IN BALTIMORE LAST YEAR BECAME THE FIRST TO ENLIST SYLVAN TO TUTOR THEIR LAGGING PUPILS THE 37 MILLION PROGRAM NOW INVOLVING EIGHT SCHOOLS IS SUPPORTED BY FEDERAL FUNDS TARGETED AT DISADVANTAGED STUDENTS BUT SYLVAN IS FAR FROM A SURE THING CAUTIONS LAWRENCE AURIANA A PORTFOLIO MANAGER FOR KAUFMANN FUND A NEW YORK MUTUAL FUND THAT OWNS SYLVAN SHARES THERE'S NO TRACK RECORD HERE IN THE TESTING BUSINESS OR IN THE REMEDIALLEARNING CONTRACT BUSINESS HE SAYS MR AURIANA ALSO WONDERS WHETHER THE COMPANY'S TOP EXECUTIVES HAVE ENOUGH EXPERIENCE TO MANAGE A RAPID EXPANSION THOUGH YOUNG MESSRS HOEHNSARIC AND BECKER SAY THEY HAVE BEEN ENTREPRENEURS FOR MORE THAN A DECADE THEY FIRST BECAME PARTNERS IN 1983 WHEN BOTH HELD PARTTIME JOBS AT A COMPUTER STORE IN TOWSON MD INTRIGUED BY OPTICALSTORAGE TECHNOLOGY THEY DEVELOPED LIFECARD A WALLETSIZE CARD THAT STORES MEDICAL DATA THEY AND THREE OTHERS FORMED A SMALL COMPANY WHICH ENTERED INTO A JOINT VENTURE WITH A MARYLAND INSURER TO PRODUCE THE CARDS AFTER SELLING THEIR STAKE IN 1985 MESSRS BECKER AND HOEHNSARIC HELPED FORM STERLING CAPITAL LTD A BALTIMORE INVESTMENT FIRM STERLING EVENTUALLY CAME TO CONTROL SEVERAL OTHER SMALL COMPANIES INCLUDING A BELTSVILLE MD SOFTWARE FIRM NAMED KEE INC UNDER STERLING'S CONTROL KEE'S MOST IMPORTANT MOVE WAS A 1991 JOINTVENTURE AGREEMENT WITH KINDERCARE LEARNING CENTERS INC A DAYCARE COMPANY IN MONTGOMERY ALA IN 1985 KINDERCARE HAD ACQUIRED FRANCHISER SYLVAN LEARNING CORP BY 1991 KINDERCARE WAS LADEN WITH DEBT AND FACING MOUNTING PROBLEMS INCLUDING COMPLAINTS BY DISGRUNTLED SYLVAN FRANCHISEES THE JOINTVENTURE PACT PUT MESSRS HOEHNSARIC AND BECKER IN CHARGE OF SYLVAN LAST YEAR KEE BOUGHT OUT KINDERCARE'S INTEREST FOR 8 MILLION CHANGED ITS OWN NAME TO SYLVAN AND WENT PUBLIC MESSRS HOEHNSARIC AND BECKER OWN ONLY ABOUT 86 OF THE COMPANY WHICH NO LONGER IS INVOLVED IN SOFTWARE BUT THE TWO ENTREPRENEURS SAY THEY AND ALLIES HOLD MORE THAN 42 OF THE SHARES SYLVAN LEARNING FRANCHISEES WHO DEAL MAINLY WITH MR BECKER SAY HE HAS PROVIDED A BADLY NEEDED SENSE OF DIRECTION PASCHAL GAGLIARDO COOWNER OF A HOUSTON FRANCHISE SAYS THE FRANCHISE'S REVENUE IS RUNNING AT TWICE LAST YEAR'S LEVEL LARGELY BECAUSE OF SYLVAN'S NEW NATIONAL TELEVISIONAD CAMPAIGN UNLIKE ITS COMMERCIALS HOWEVER SYLVAN'S NEW BUSINESS THRUSTS DON'T EVEN PROMISE TO HELP ALL FRANCHISEES THE COMPANY SAYS ITS FRANCHISEES DON'T HAVE ANY RIGHTS UNDER THEIR FRANCHISE CONTRACTS TO PARTICIPATE IN THE NEW COMPUTERIZEDTESTING BUSINESS BUT SYLVAN HAS SIGNED SUPPLEMENTARY AGREEMENTS WITH MANY FRANCHISEES WHO ADMINISTER TESTS AND SHARE IN THE TESTING REVENUE 9404260166 940426 WHO'S NEWS HANDLEMAN CO HANDLEMAN CO TROY MICH PETER J CLINE 47 YEARS OLD WAS NAMED AN EXECUTIVE VICE PRESIDENT AND TO THE NEWLY CREATED POSITION OF PRESIDENT OF DISTRIBUTION AT THE PRODUCER OF HOMEENTERTAINMENT PRODUCTS 9404260165 940426 BUSINESS BRIEF TOYOTA AGREES TO 250000 SETTLEMENT WITH US OVER FUELLEAKAGE PROBLEM WASHINGTON TOYOTA MOTOR CORP IN A 250000 SETTLEMENT WITH THE FEDERAL GOVERNMENT ADMITTED IT TOOK TOO LONG TO WARN CUSTOMERS OF A FUELLEAKAGE PROBLEM WITH ITS 19801989 LAND CRUISERS THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION ALSO ACCUSED TOYOTA OF GIVING FALSE OR INCOMPLETE INFORMATION DURING A SAFETY INVESTIGATION LAUNCHED BY THE AGENCY IN 1990 TOYOTA DENIED THAT BUT SAID IT AGREED TO THE SETTLEMENT TO AVOID LITIGATION AT ISSUE IS A PART CALLED THE SEPARATOR DESIGNED TO PREVENT FUEL FROM SLOSHING AROUND INSIDE THE GAS TANK IT IS SPOTWELDED TO THE INSIDE WALL OF A GAS TANK IF IT GETS DETACHED FROM THE TANK A HOLE CAN EMERGE AND FUEL CAN LEAK CREATING THE POTENTIAL FOR FIRE OR EXPLOSION ACCORDING TO THE FEDERAL AGENCY IN JUNE 1991 TOYOTA ANNOUNCED A RECALL OF ABOUT 38000 VEHICLES BUT THAT WAS A FULL TWO YEARS AFTER THE COMPANY CHANGED THE WAY THE SEPARATOR WAS ATTACHED TO THE FUEL TANK IN LAND CRUISERS ACCORDING TO A COMPLAINT FILED BY THE AGENCY ALONG WITH THE SETTLEMENT YESTERDAY IN FEDERAL COURT HERE TOYOTA HAD RECEIVED SCORES OF WARRANTY CLAIMS STEMMING FROM LEAKING FUEL TANKS AND IT HAD ONE REPORT OF A DEALER WHO HAD SOLD NINE REPLACEMENT TANKS IN THE PREVIOUS SIX MONTHS THE COMPLAINT SAYS THE 1966 MOTOR VEHICLE SAFETY ACT REQUIRES MANUFACTURERS TO NOTIFY THE AGENCY WITHIN A REASONABLE TIME IF THEY FIND A SAFETYRELATED AUTOMOBILE DEFECT THE AGENCY HAS INTERPRETED THE TIME LIMIT AS FIVE DAYS ACCORDING TO THE AGENCY TOYOTA CALLED THE PROBLEM AN UNKNOWN ONE IN MARCH 1991 EVEN THOUGH THE AUTO MAKER'S 1989 DESIGN CHANGE HAD CORRECTED THE PROBLEM IN NEWER LAND CRUISERS TOYOTA SAID THE DESIGN CHANGE WAS INTENDED TO CORRECT A NOISE PROBLEM BUT THE COMPANY USED THE SAME CHANGE TWO YEARS LATER TO CORRECT THE RECALLED FUEL TANKS THE COMPLAINT SAYS TOYOTA ALSO MADE THE TANKS THICKER TOYOTA COULDN'T BE REACHED FOR COMMENT NHTSA OFFICIALS SAID THEY HAVEN'T RECEIVED ANY REPORTS OF ACCIDENTS OR INJURIES INVOLVING THE LAND CRUISERS 9404260164 940426 POLITICS & POLICY PROISRAEL LOBBY SEES ROLE SHRINK AS ENEMIES TURN INTO FRIENDS AND LEADERS FORGE OWN TIES BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON STEVEN GROSSMAN PRESIDENT OF THE AMERICAN ISRAEL PUBLIC AFFAIRS COMMITTEE THE PROISRAEL LOBBYING GROUP WAS FIELDING MEMBERS' QUESTIONS RECENTLY WHEN THE SUBJECT OF JERUSALEM CAME UP WILL AIPAC THE QUESTIONER WANTED TO KNOW PRESS THE US TO VETO A UNITED NATIONS RESOLUTION THAT CALLED ISRAEL'S CAPITAL OCCUPIED TERRITORY NO MR GROSSMAN SAID MEMBERS OF THE AUDIENCE BEGAN TO BOO THE BIG PROISRAEL LOBBY IS IN THE THROES OF AN IDENTITY CRISIS THESE DAYS FOR DECADES ITS MISSION WAS CLEAR MOBILIZE US SUPPORT TO DEFEND ISRAEL'S INTERESTS AND BOLSTER ITS SECURITY NOW ITS WORLD SEEMS TURNED UPSIDE DOWN YASSER ARAFAT YESTERDAY'S ARCHENEMY TODAY IS ISRAEL'S PEACE PARTNER AFTER A PERIOD OF DISMAL USISRAEL RELATIONS ISRAELI PRIME MINISTER YITZHAK RABIN GETS ALONG SO WELL WITH PRESIDENT CLINTON THAT HE HAS POINTEDLY TOLD AIPAC HE DOESN'T NEED ITS HELP TO CONDUCT DIPLOMACY IS AIPAC WEAKER ASKS MORRIS AMITAY WHO WAS AIPAC'S EXECUTIVE DIRECTOR FROM 1974 TO 1980 NOT AS AN INSTITUTION IT ISN'T BUT ITS ROLE HAS BEEN DIMINISHED MEANWHILE BROADER CHANGES UNDER WAY IN THE AMERICAN JEWISH COMMUNITY ALSO ARE BUFFETING AIPAC WITH ARAB STATES NOW TALKING FOR THE FIRST TIME DIRECTLY TO ISRAEL THE SENSE OF CRISIS THAT ONCE GENERATED FINANCIAL SUPPORT AND EMOTIONAL CONCERN FOR ISRAEL'S SURVIVAL HAS EBBED AS A RESULT MANY US JEWISH ACTIVISTS ARE REDIRECTING THEIR ENERGIES TOWARD DOMESTIC PROBLEMS INCLUDING THE RECENT OUTBURST OF RABID ANTISEMITISM FROM SOME BLACK LEADERS AN AIPAC OFFICIAL WORRIES WHETHER IN SUCH AN ENVIRONMENT IT WILL BE MORE DIFFICULT IN THE FUTURE TO MOBILIZE THE TROOPS IF ANOTHER DOWNTURN IN USISRAEL RELATIONS OCCURS ONE EARLY POSSIBLE WARNING SIGN IS THAT AFTER MORE THAN A DECADE OF ANNUAL REVENUE INCREASES OF 10 TO 15 AIPAC'S FUNDING GROWTH HAS BEEN ESSENTIALLY FLAT FOR MORE THAN A YEAR THE FLAP OVER THE UN RESOLUTION ILLUSTRATES AIPAC'S DILEMMA AS IT TRIES TO ADJUST TO CHANGES IN ISRAEL AND THE US ONCE ANY QUESTIONING OF THE STATUS OF JERUSALEM AUTOMATICALLY BROUGHT THE PROISRAEL LOBBY TO THE BARRICADES THIS TIME AIPAC INITIALLY HELD OFF WHEN MESSRS CLINTON AND RABIN CONCLUDED THAT A FIGHT OVER THE RESOLUTION WOULD ONLY SLOW THE PEACE PROCESS BUT PROISRAEL LAWMAKERS DIDN'T AGREE TWO DAYS AFTER MR GROSSMAN MADE HIS COMMENTS AT AIPAC'S ANNUAL POLICY CONFERENCE IN MARCH SEVERAL SENATORS BEGAN CIRCULATING A LETTER TO COLLEAGUES PROTESTING THE ADMINISTRATION'S DECISION AS THE NUMBER OF SENATORS SIGNING THE LETTER RAPIDLY CLIMBED TOWARD 83 AIPAC QUICKLY REVERSED COURSE AND JUMPED ON BOARD AIPAC HAS A LITTLE BIT OF A BALANCING ACT TO DO OBSERVES REP HOWARD BERMAN A PROISRAEL DEMOCRAT FROM CALIFORNIA MR GROSSMAN INSISTS THAT THE CONFUSION OVER THE UN RESOLUTION IS EVIDENCE OF HEALTHY DISCUSSION AND DEBATE AT AIPAC HE SAYS THE PROISRAEL LOBBY IS AS EFFECTIVE AS EVER AT EDUCATING A NEW CROP OF FRESHMAN LAWMAKERS ON THE IMPORTANCE OF FOREIGN AID HE NOTES THAT 88 OF 114 NEW HOUSE MEMBERS VOTED FOR FOREIGN AID THIS YEAR AIPAC ALSO HELPED DEVELOP A USISRAELI SCIENTIFIC AND TECHNOLOGY COMMISSION TO COORDINATE JOINT PROJECTS AND IS PLANNING TO GET MORE INVOLVED PROMOTING USISRAEL ECONOMIC DEVELOPMENT AND TRADE JUST BECAUSE ISSUES MAY NOT BE HIGHLY CHARGED DOESN'T MAKE THEM NOT IMPORTANT HE SAYS NEVERTHELESS THE MOST IMPORTANT ISSUES NOW ARE HANDLED BY MR RABIN ISRAEL FOR INSTANCE HAD BEEN NEGOTIATING FOR SEVERAL YEARS TO PURCHASE NEW US FIGHTER AIRCRAFT STATE AND DEFENSE DEPARTMENT OFFICIALS OPPOSED SELLING THE JEWISH STATE A VERSION OF THE F15E AIRCRAFT THE STATEOFTHEART FIGHTER THAT IS ISRAEL'S FIRST CHOICE IN THE PAST THE ISSUE WOULD MOST LIKELY HAVE BEEN FOUGHT OUT IN THE CONGRESS WITH AIPAC AT THE FOREFRONT NOT THIS TIME THOUGH WHEN MR RABIN RAISED THE ISSUE LAST NOVEMBER DURING A CONVERSATION IN THE OVAL OFFICE PRESIDENT CLINTON QUICKLY GAVE HIM A GREEN LIGHT THE TWO LEADERS SEEM TO ENJOY AN EASY RAPPORT MR CLINTON THE POLITICIAN APPRECIATED MR RABIN'S DILEMMA WHEN THE ISRAELI PRIME MINISTER SAYS HE CAN'T OVERLOAD ISRAEL'S POLITICAL CIRCUITS BY PRESSING FOR PEACE WITH THE PALESTINIANS AND SYRIANS AT THE SAME TIME AND MR RABIN THE EXGENERAL APPRECIATES MR CLINTON'S DECISION ON THE F15S WHICH SHOWED THE US WOULD BOLSTER ISRAEL'S SECURITY AS IT TOOK RISKS FOR PEACE BY CONTRAST FORMER PRESIDENT BUSH AND FORMER ISRAELI PRIME MINISTER YITZHAK SHAMIR WERE BARELY ON SPEAKING TERMS MR SHAMIR FOUGHT US EFFORTS TO BROKER MIDEAST PEACE AND MR BUSH BLOCKED 10 BILLION IN LOAN GUARANTEES FOR ISRAEL AS A RESULT DURING THE 15YEAR REIGN OF HARDLINE LIKUD GOVERNMENTS IN ISRAEL AIPAC OFFICIALS OFTEN SERVED AS GOBETWEENS OR REFEREES DEFENDING ISRAEL'S GOVERNMENT BEFORE AN OFTEN HOSTILE US ADMINISTRATION IRONICALLY THE VERY IMPROVEMENT IN USISRAELI RELATIONS PRODUCED TENSIONS IN AIPAC'S RANKS AIPAC'S OLD GUARD HAD GROWN COMFORTABLE WITH LIKUD AND WAS SUSPICIOUS OF MR RABIN'S EAGERNESS TO MAKE PEACE WITH ISRAEL'S ARAB NEIGHBORS THE MUTUAL ANIMOSITY SURFACED AT A 1992 PRIVATE MEETING AT WASHINGTON'S MADISON HOTEL WHERE MR RABIN BLAMED AIPAC FOR PRESSING THE BITTER FIGHT WITH THE BUSH ADMINISTRATION OVER THE LOAN GUARANTEES EARLY LAST YEAR ISRAEL'S AMBASSADOR TO WASHINGTON TOLD AN AIPAC AUDIENCE THAT ISRAEL WOULD HAVE TO MAKE SOME CONCESSIONS TO ADVANCE THE PEACE PROCESS ONLY ONE PERSON IN THE AUDIENCE APPLAUDED ACCORDING TO A PERSON WHO WAS THERE THESE DAYS THOUGH AIPAC IS TRYING TO SHUCK ITS IDENTIFICATION WITH HARDLINE ISRAELI POLICIES WHEN ITS PRESIDENT DAVID STEINER RESIGNED IN NOVEMBER 1992 AMID EMBARRASSING REPORTS THAT HE HAD BOASTED ABOUT HIS INFLUENCE WITH THEN PRESIDENTELECT CLINTON AIPAC REACHED OUT TO MR GROSSMAN A WEALTHY BUSINESSMAN WHO WAS CHAIRMAN OF THE MASSACHUSETTS DEMOCRATIC PARTY EARLIER THIS YEAR THE OLD GUARD'S CANDIDATE FOR EXECUTIVE DIRECTOR WAS EDGED OUT BY A 12TO11 MARGIN THE FIRST SPLIT VOTE FOR A SENIOR POSITION IN AIPAC'S HISTORY MR GROSSMAN SAYS AIPAC STILL HAS AN IMPORTANT ROLE TO PLAY IN PROMOTING AND SUPPORTING THE CURRENT WARM USISRAEL RELATIONSHIP WHEN YOU HAVE THAT KIND OF RELATIONSHIP YOU CELEBRATE IT YOU NURTURE IT AND YOU HOPE IT CONTINUES TO DEVELOP HE SAYS BUT DOUGLAS BLOOMFIELD A FORMER AIPAC LEGISLATIVE DIRECTOR WHO WAS SQUEEZED OUT IN A DISPUTE WITH THE OLDGUARD LEADERSHIP SAYS MR GROSSMAN HAS AN EVEN MORE PRESSING MISSION HE HAS TO DEMONSTRATE THAT HE CAN TAKE CONTROL THAT HE CAN MAKE THE ORGANIZATION MORE RELEVANT AND RESPONSIVE 9404260163 940426 BUSINESS BRIEF TEXTRON INC CONGLOMERATE WILL COMBINE AUTOMOTIVE RESOURCES UNITS TEXTRON INC SAID IT'S COMBINING ITS AUTOMOTIVE RESOURCES TO FORM TEXTRON AUTOMOTIVE CO THE PROVIDENCE RI AEROSPACE COMMERCIAL PRODUCTS AND FINANCIAL SERVICES COMPANY SAID IT IS FORMING THE NEW CONCERN TO STREAMLINE ITS GROWING AUTOMOTIVE BUSINESS IN 1993 THE COMPANY'S AUTOMOTIVE SALES TOTALED ALMOST 12 BILLION TEXTRON SAID ITS GROUP VICE PRESIDENT DEREK PLUMMER WILL BECOME CHAIRMAN OF TEXTRON AUTOMOTIVE CO ANOTHER TEXTRON GROUP VICE PRESIDENT FRED HUBACKER WILL BECOME PRESIDENT OF THE NEW ORGANIZATION BOTH EXECUTIVES WILL CONTINUE AS CORPORATE VICE PRESIDENTS OF TEXTRON 9404260162 940426 NATION'S STEEL OUTPUT SLIPPED 32 IN WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS DECREASED 32 LAST WEEK TO 1849000 TONS FROM 1910000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 033 FROM THE 1843000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 885 OF ITS CAPABILITY LAST WEEK COMPARED WITH 915 THE PREVIOUS WEEK AND 872 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9404260161 940426 KAISER ALUMINUM HAS PACTS WITH SMELTERS IN RUSSIA AND INDIA HOUSTON KAISER ALUMINUM CORP SAID IT REACHED AGREEMENTS WITH ALUMINUM SMELTERS IN RUSSIA AND INDIA FOR TECHNICAL DEVELOPMENTS THE COMPANY SAID IT IS ACTIVELY PURSUING OPPORTUNITIES FOR SIMILAR AGREEMENTS AND FOR EXPANDED COMMERCIAL RELATIONSHIPS IN THESE COUNTRIES AND IN CHINA KAISER SAID THAT IN RUSSIA IT IS INVOLVED IN UPGRADING PARTS OF AN 800000TONSAYEAR SMELTER IN KRASNOYARSK AND INSTALLING TESTREDUCTION CELLS IN A SMELTER IN NADVOITSY NORTH OF ST PETERSBURG NEAR THE FINNISH BORDER KAISER ALSO SAID IT IS MODERNIZING THE INDIAN GOVERNMENTOWNED BHARAT ALUMINIUM COMPANY LTD SMELTER IN THE MADHYA PRADESH PROVINCE IN CENTRAL INDIA LAWRENCE L WATTS 47 YEARS OLD WAS NAMED VICE PRESIDENT AND GENERAL MANAGER BUSINESS DEVELOPMENT FOR RUSSIA CHINA AND INDIA MR WATTS RETAINS HIS RESPONSIBILITIES AS VICE PRESIDENT AND COGENERAL MANAGER OF KAISER'S ALUMINA BUSINESS SC MANAKTALA 57 YEARS OLD WAS NAMED VICE PRESIDENT AND GENERAL MANAGER BUSINESS DEVELOPMENT FOR THE COMMONWEALTH OF INDEPENDENT STATES REPORTING TO MR WATTS MR MANAKTALA WILL RELOCATE TO MOSCOW AND OPEN A KAISER OFFICE THERE IN THE NEAR FUTURE MR MANAKTALA PREVIOUSLY WAS RESPONSIBLE FOR WORLDWIDE SALES OF TECHNOLOGY FOR KAISER'S PRIMARY ALUMINUM BUSINESSEND 9404260160 940426 WHO'S NEWS VONS PICKS DEL SANTO AS ITS VICE CHAIRMAN AND CHIEF EXECUTIVE ARCADIA CALIF VONS COS SAID LAWRENCE A DEL SANTO 60 YEARS OLD WAS NAMED VICE CHAIRMAN CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF THE SUPERMARKET OPERATOR MR DEL SANTO WHO MOST RECENTLY SERVED AS SENIOR EXECUTIVE VICE PRESIDENT OF THE FOOD OPERATIONS OF RIVAL AMERICAN STORES CO SUCCEEDS ROGER STANGELAND AS CEO AND FILLS THE VACANT VICE CHAIRMAN'S POST MR STANGELAND 64 WILL REMAIN CHAIRMAN AND EXPECTS TO BEGIN CUTTING BACK ON HIS FULLTIME DUTIES BY YEAR'S END IN PREPARATION FOR MR DEL SANTO'S ASSUMPTION OF THE CHAIRMAN'S POST WHICH IS SCHEDULED FOR MAY 1995 RICHARD E GOODSPEED 57 WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER FILLING POSITIONS THAT HAD BEEN VACANT SINCE LAST NOVEMBER AFTER THE RESIGNATION OF DENNIS K ECK MR ECK 50 SAID HE WAS LEAVING THE COMPANY AFTER DETERMINING HE WOULDN'T BE NAMED TO THE TOP POST MR GOODSPEED WHO HAS HELD SEVERAL POSITIONS WITH THE LUCKY STORES SUPERMARKET CHAIN MOST RECENTLY SERVED AS EXECUTIVE VICE PRESIDENT OF FOOD OPERATIONS OF AMERICAN STORES VONS'S STOCK JUMPED 75 CENTS TO CLOSE AT 1725 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9404260159 940426 BORDEN'S NET PLUNGES AS PROBLEMS PERSIST IN FOOD DAIRY LINES NEW YORK BORDEN INC REPORTED A SHARP DROP IN FIRSTQUARTER NET INCOME REFLECTING CONTINUED PROBLEMS IN ITS NORTH AMERICAN FOOD AND DAIRY OPERATIONS THE FOOD AND CHEMICALS COMPANY EARNED 58 MILLION OR FOUR CENTS A SHARE COMPARED WITH RESTATED YEAREARLIER PROFIT OF 92 MILLION OR SEVEN CENTS A SHARE EXCLUDING LAST YEAR'S 165 MILLION LOSS FROM DISCONTINUED OPERATIONS AS WELL AS AN 18 MILLION ACCOUNTING CHARGE LAST YEAR'S RESTATED EARNINGS FROM CONTINUING OPERATIONS WERE 437 MILLION OR 31 CENTS A SHARE SALES FELL 2 TO 127 BILLION ALTHOUGH FIRSTQUARTER RESULTS WERE DOWN THEY MET THE COMPANY'S PREDICTION OF A MARGINALLY PROFITABLE QUARTER IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY BORDEN SHARES ROSE 625 CENTS OR 51 TO 12875 IN JANUARY 1993 BORDEN'S SHARES TRADED AS HIGH AS 29 ANALYSTS SAID THE FIRSTQUARTER RESULTS REPRESENTED A SLIGHT IMPROVEMENT OVER THE FOURTH QUARTER WHEN BORDEN POSTED AN OPERATING LOSS I DON'T HAVE GREAT ENTHUSIASM FOR THE STOCK BUT IT'S DECLINED SO DRAMATICALLY OVER THE PAST TWO YEARS THAT IT'S TOO LATE TO SELL IT SAID GOLDMAN SACHS & CO'S NOMI GHEZ WHO UPGRADED THE STOCK TO A MARKET PERFORMER YESTERDAY SALES IN BORDEN'S NORTH AMERICAN FOODS DIVISION FELL 5 TO 5928 MILLION WHILE OPERATING PROFIT SANK 96 TO 23 MILLION PRIMARILY FROM A LOSS IN DAIRY AND A DECLINE IN PASTA WHICH REFLECTED HIGHER MARKETING EXPENSES AND DURUM WHEAT COSTS OPERATING PROFIT IN THE INTERNATIONAL FOODS UNIT FELL 16 TO 158 MILLION WHILE SALES SLIPPED 1 TO 2189 MILLION THE PACKAGING AND INDUSTRIALPRODUCTS SEGMENT HAD THE ONLY GAIN OPERATING PROFIT INCREASED 4 TO 378 MILLION AND SALES ROSE 13 TO 461 MILLION 9404260158 940426 DIVIDEND NEWS ALLIEDSIGNAL INC ALLIEDSIGNAL INC MORRISTOWN NJ RAISED ITS QUARTERLY DIVIDEND 16 REFLECTING CONFIDENCE THAT THE EARNINGS MOMENTUM OF THE FIRST QUARTER WILL CONTINUE THROUGH THE REST OF 1994 AND THAT THE COMPANY WILL REACH ITS GOAL OF 13 TO 17 EARNINGS GROWTH FOR THE YEAR SAID LAWRENCE A BOSSIDY CHAIRMAN AND CHIEF EXECUTIVE THE COMPANY DECLARED A QUARTERLY DIVIDEND OF 1675 CENTS A SHARE PAYABLE JUNE 10 TO HOLDERS OF RECORD MAY 20 ADJUSTED FOR A 2FOR1 STOCK SPLIT IN MARCH THE COMPANY LAST PAID 29 CENTS A SHARE BEFORE THE SPLIT ALLIEDSIGNAL MAKES AEROSPACE AND AUTOMOTIVE PRODUCTS CHEMICALS FIBERS PLASTICS AND ADVANCED MATERIALS 9404260156 940426 MICROSOFT APPROVES A 2FOR1 STOCK SPLIT OF SHARES OUTSTANDING REDMOND WASH MICROSOFT CORP SAID ITS BOARD APPROVED A 2FOR1 SPLIT OF THE COMPUTER SOFTWARE COMPANY'S 285 MILLION SHARES OUTSTANDING THE SPLIT WHICH WILL BE PAID MAY 20 TO HOLDERS OF RECORD MAY 6 IS THE FIRST FOR THE COMPANY SINCE ITS 3FOR2 STOCK SPLIT IN JUNE 1992 MICROSOFT SAID THE BOARD'S DECISION WAS BASED ON A DESIRE TO KEEP THE STOCK PRICE ACCESSIBLE TO SMALLER INVESTORS IN NASDAQ STOCK MARKET TRADING YESTERDAY MICROSOFT CLOSED AT 9375 UP 2 THE STOCK IS ONE OF ONLY A HANDFUL OF NASDAQ STOCKS TRADING AT OVER 75 A SHARE ANALYSTS SAID THE BOARD'S MOVE WAS NO SURPRISE JUST ABOUT EVERY TIME THEY GET UP AROUND 100 A SHARE THEY SPLIT SAID PETER ROGERS WHO FOLLOWS THE COMPANY FOR ROBERTSON STEPHENS & CO MICROSOFT'S SHARE PRICE HAS CLIMBED SINCE THE COMPANY INDICATED TO ANALYSTS TWO WEEKS AGO THAT IT EXPECTS REVENUE FOR THE FISCAL FOURTHQUARTER ENDING JUNE 30 TO MATCH ITS RECORD THIRDQUARTER REVENUE OF 124 BILLION 9404260155 940426 INTERNATIONAL SOCIALISTS QUIT JAPAN COALITION ENDING MAJORITY DEPARTURE FOLLOWS ALLIANCE AMONG CENTRIST PARTIES GIVES THE LDP AN EDGE BY MASAYOSHI KANABAYASHI AND MICHAEL WILLIAMS STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPAN'S POLITICAL WORLD VEERED TOWARD CHAOS ONCE AGAIN EARLY THIS MORNING JAPAN'S SOCIALIST PARTY QUIT THE RULING COALITION ELIMINATING THE ALLIANCE'S PARLIAMENTARY MAJORITY THE SOCIALISTS' DEFECTION WAS A RESPONSE TO A MOVE BY OTHER COALITION FACTIONS TO FORM A NEW VOTING BLOC WITH A SMALL CONSERVATIVE OPPOSITION PARTY AN APPARENT STRATEGY TO TAME THE ALLIANCE'S LEFT WING THE POLITICAL MANEUVERING ONLY HOURS AFTER PARLIAMENT ELECTED TSUTOMU HATA AS JAPAN'S NEW PRIME MINISTER NOT ONLY DELAYED THE SELECTION OF A CABINET BUT ALSO RAISES THE PROSPECT THAT THE NEW ADMINISTRATION MIGHT COLLAPSE SOON AFTER ITS BIRTH THE SOCIALISTS WHO WERE THE COALITION'S LARGEST SINGLE PARTY WITH 74 PARLIAMENTARY SEATS SAID THEY WOULD BACK A COALITIONAUTHORED BUDGET BUT THEY WOULDN'T PROMISE TO SUPPORT OTHER COALITION LEGISLATION SOCIALIST LEADERS FELT BETRAYED BY THE FORMATION OF THE NEW CENTRIST VOTING BLOC WHICH THEY SAID WAS ASSEMBLED WITHOUT CONSULTING THEM IT'S UNFORGIVABLE SAID SOCIALIST CHAIRMAN TOMIICHI MURAYAMA THEIR SECESSION LEFT COALITION LEADERS SCRAMBLING TO WOO THE SOCIALISTS BACK BUT PROSPECTS OF A RECONCILIATION SEEMED DIM THERE IS STILL ROOM FOR DISCUSSION PRIME MINISTER HATA SAID IN A LATENIGHT NEWS CONFERENCE I HAVEN'T GIVEN UP THE NEW UPHEAVAL TAKES JAPANESE POLITICS INTO NEW TERRITORY WITHOUT THE SOCIALISTS MR HATA'S MINORITY GOVERNMENT MAY BE AS MANY AS 69 VOTES SHORT OF A MAJORITY IN THE 511SEAT PARLIAMENT INDEED WITHOUT THE SOCIALISTS THE COALITION WOULD CONTROL ABOUT 20 FEWER SEATS THAN THE OPPOSITION LIBERAL DEMOCRATIC PARTY WHICH HAS 206 SEATS THAT THREATENS TO EXTEND THE CURRENT PERIOD OF LEGISLATIVE UNCERTAINTY WHILE MEMBERS OF THE SOCIALISTS AND SOME CONSERVATIVES DECIDE WHETHER TO SUPPORT THE COALITION THIS BECOMES A TIGHTROPE ADMINISTRATION NO MATTER WHAT THEY DECIDE IT WON'T PASS SAYS YOSHIAKI KOBAYASHI A PROFESSOR AT KEIO UNIVERSITY IN TOKYO THE LEGISLATIVE FRACTURING RAISES THE PROSPECT OF A DISSOLUTION OF PARLIAMENT AFTER THE BUDGET VOTE EARLIER MEMBERS OF THE NEW CENTRIST BLOC HAD CALLED THEIR ACTION AN ATTEMPT TO SHORE UP MR HATA'S POWER BASE INSTEAD IT SEEMED TO BE PUSHING THE RICKETY RULING COALITION TO THE BRINK OF A BREAKUP JUST AS IT EMERGES FROM TWO WEEKS OF HEATED BARGAINING IN WHICH THE PARTIES HAMMERED OUT A POLICY ACCORD MEANT TO SMOOTH OVER THEIR DIFFERENCES DUBBED KAISHIN OR REFORMATION THE NEW VOTING BLOC ENCOMPASSES THREE OLD COALITION PARTIES MR HATA'S SHINSEITO PARTY THE KAIKAKU PARTY OF PREVIOUS PRIME MINISTER MORIHIRO HOSOKAWA AND THE LABORAFFILIATED DEMOCRATIC SOCIALIST PARTY IT ALSO INCLUDES TWO TINY CONSERVATIVE GROUPS THAT RECENTLY SPLINTERED FROM THE FORMER RULING LDP KAISHIN HAS 130 LEGISLATORS JAPAN'S LATEST POLITICAL TEMPEST COULD TURN OUT TO BE A BLESSING IN DISGUISE SOME SOCIALISTS MIGHT REMAIN IN THE RULING CAMP AND OTHER CONSERVATIVES MAY DEFECT TO IT THAT COULD LEAD TO A RECONFIGURED COALITION AND A STRENGTHENED ALLIANCE HOWEVER AT THIS POINT THE FORMATION OF THE NEW BLOC APPEARS TO HAVE BEEN A MISCALCULATION IF IT ISN'T ABLE TO COBBLE TOGETHER A WORKING MAJORITY THE COALITION COULD FIND ITSELF UNABLE TO PUSH ITS LEGISLATIVE AGENDA MOREOVER THE STRATEGY COULD ALSO BACKFIRE BY FURTHER TAINTING THE COALITION'S REFORMIST CREDENTIALS INDEED THE ABRUPTNESS OF KAISHIN'S CREATION SMACKED OF THE BACKROOM POLITICAL DEALINGS OF THE LDP THAT THE COALITION REPLACED MR HOSOKAWA WHO HIMSELF RESIGNED OVER ALLEGATIONS OF OLDSTYLE FINANCIAL IMPROPRIETIES PLEDGED TO WIPE OUT SUCH SHENANIGANS THE CURRENT TURMOIL REFLECTS THE POLITICAL REALIGNMENT THAT HAS BEEN SHAKING JAPAN SINCE LAST SUMMER KAISHIN'S ESTABLISHMENT UNDERSCORES THAT SO FAR THE BIGGEST LOSERS OF THAT REALIGNMENT HAVE BEEN THE LDP AND THE SOCIALISTS THE TWO LARGEST PARTIES DURING THE LDP'S 38YEAR REIGN KAISHIN FURTHER WEAKENS THE LDP BY BRINGING NEW LDP DEFECTORS INTO THE COALITION FOLD AND IT ISOLATES THE SOCIALIST PARTY BY INCORPORATING THE LABORBACKED DEMOCRATIC SOCIALISTS BY COMBINING LIKEMINDED MEMBERS OF THE COALITION KAISHIN ALSO COULD HASTEN A TREND TOWARD A SIMPLIFIED POLITICALPARTY STRUCTURE FROM THE MULTIPARTY CHAOS THAT EXISTS TODAY THE SHINSEITO PARTY AND ITS ALLIES FAVOR THE ESTABLISHMENT OF A STABLE TWOPARTY SYSTEM IN WHICH A PAIR OF MODERATE GROUPS TRADE TURNS AT THE HELM AS IN THE US THE SOCIALISTS AND THEIR ALLIES PREFER A MULTIPARTY SYSTEM IN WHICH A LEFT A RIGHT AND A CENTER COMPETE FOR POWER BOTH GROUPS SHARE A DESIRE TO UNDERMINE THE LDP 9404260154 940426 INTERNATIONAL JAPANESE VEHICLE OUTPUT SLIDES TOKYO JAPAN'S PRODUCTION OF CARS TRUCKS AND BUSES FELL 94 IN MARCH FROM THE YEAREARLIER MONTH TO 1055 MILLION UNITS THE JAPAN AUTOMOBILE MANUFACTURERS' ASSOCIATION ANNOUNCED MONDAY A JAMA SPOKESMAN SAID THE GENERAL DOWNTREND IN PRODUCTION IS LIKELY TO CONTINUE IN THE COMING MONTHS THOUGH THE ASSOCIATION IS CAREFULLY WATCHING TO SEE WHETHER THE SIZE OF THE DECLINE WILL START SHRINKING 9404260153 940426 PRC INC WINS FBI CONTRACT TOWSON MD PRC INC A COMPUTER AND TECHNOLOGY SYSTEMS UNIT OF BLACK & DECKER CORP SAID IT RECEIVED AN EIGHTYEAR 75 MILLION CONTRACT FROM THE FEDERAL BUREAU OF INVESTIGATION PRC WILL DESIGN AND OPERATE THE IDENTIFICATION TASKING AND NETWORKING PORTION OF THE FBI'S NEW INTEGRATED AUTOMATED FINGERPRINT IDENTIFICATION SYSTEM THE SYSTEM WILL REDUCE TIME REQUIRED TO SEARCH AND RETRIEVE FINGERPRINTS 9404260152 940426 GOLDENSONS PLANNING GIFT OF 60 MILLION TO HARVARD BOSTON LEONARD GOLDENSON FOUNDER OF AMERICAN BROADCASTING COS AND HIS WIFE ISABELLE A PHILANTHROPIST WILL DONATE 60 MILLION TO THE HARVARD MEDICAL SCHOOL TO FUND CEREBRAL PALSY RESEARCH THE DONATION MARKS THE LARGEST GIFT EVER PLEDGED IN THE SCHOOL'S 200YEAR HISTORY MR GOLDENSON WAS GRADUATED FROM HARVARD COLLEGE IN 1927 AND HARVARD LAW SCHOOL IN 1930 HE AND HIS WIFE WHO RESIDE IN SARASOTA FLA HAVE LONG SUPPORTED RESEARCH INTO THE PREVENTION AND CURE OF CEREBRAL PALSY WHICH AFFLICTED THEIR LATE DAUGHTER GENISE THE DONATION WHICH CONSISTS OF A PLEDGE OF 90 OF THE GOLDENSONS' COMBINED ESTATES SPECIFICALLY WILL FUND RESEARCH OF THE BRAIN INCLUDING THE DEVELOPMENT OF NERVE CELLS WHICH SCIENTISTS HOPE WILL UNLOCK THE MYSTERIES OF CEREBRAL PALSY HARVARD MEDICAL SCHOOL WILL RENAME ITS BOSTON RESEARCH BUILDING THAT HOUSES ITS NEUROBIOLOGY LABORATORIES IN HONOR OF THE COUPLE MR GOLDENSON RETIRED FROM THE CHAIRMANSHIP OF ABC IN 1986 WHEN IT MERGED WITH CAPITAL CITIES COMMUNICATIONS HE REMAINS CHAIRMAN OF THE EXECUTIVE COMMITTEE OF CAPITAL CITIES/ABC INC 9404260151 940426 WHO'S NEWS UPJOHN CO UPJOHN CO KALAMAZOO MICH PETER A CRODEN 48 YEARS OLD FORMERLY GENERAL MANAGER OF UPJOHN'S CANADIAN PHARMACEUTICAL OPERATION WAS NAMED DIVISIONAL VICE PRESIDENT WORLDWIDE ANIMAL HEALTH EFFECTIVE MAY 1 9404260150 940426 WHO'S NEWS FIGGIE INTERNATIONAL INC FIGGIE INTERNATIONAL INC WILLOUGHBY OHIO ALLEN C HAYS WAS APPOINTED CONTROLLER OF THIS MAKER OF FIRE TRUCKS AND SPORTING GOODS MR HAYS 44 YEARS OLD WAS GROUP CONTROLLER OF THE COMPANY'S AUTOMATIC SPRINKLER INTERSTATE ELECTRONICS AND SIX OTHER DIVISIONS HE SUCCEEDS JOSEPH SKADRA 52 WHO RECENTLY RESIGNED MR HAYS WILL BE RESPONSIBLE FOR FIGGIE'S ACCOUNTING PRACTICES FISCAL RECORDS AND FINANCIAL REPORTS IN ADDITION TO CORPORATE ACCOUNTING INFORMATION SYSTEMS AND TELECOMMUNICATIONS DEPARTMENTS 9404260149 940426 WHO'S NEWS INFORMATION DISPLAY TECHNOLOGY INC INFORMATION DISPLAY TECHNOLOGY INC PITTSBURGH N ROY ANDERSON 54 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER OF THE COMPANY AND ALAN J NICKERSON 44 SENIOR VICE PRESIDENT OF ALPINE POLYVISION A UNIT OF ALPINE GROUP INC NEW YORK WERE NAMED NEW DIRECTORS OF THIS MAKER OF CUSTOMDESIGNED WRITING AND PROJECTION SURFACES CHALKBOARDS AND MARKERBOARDS CUSTOM CABINETRY AND ARCHITECTURAL BUILDING PANELS THE APPOINTMENTS INCREASE THE SIZE OF THE COMPANY'S BOARD TO SEVEN MEMBERS FROM FIVE 9404260148 940426 KMART SAYS FIRSTQUARTER EARNINGS ARE SEEN AT WELL BELOW' A YEAR AGO BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL KMART CORP SAID FISCAL FIRSTQUARTER EARNINGS FROM CONTINUING OPERATIONS ARE EXPECTED TO FALL WELL BELOW THE YEARAGO PERIOD'S 12 CENTS A SHARE REFLECTING STIFF COMPETITION AND POOR INVENTORY PLANNING ANALYSTS WERE SURPRISED AT THE DEPTH OF THE ANTICIPATED DECLINE SINCE RESULTS WERE SO POOR IN THE DISCOUNTER'S PRIORYEAR PERIOD ENDED APRIL 28 IN THAT QUARTER OPERATING PROFIT WAS 58 MILLION EQUAL TO THE 12 CENTS A SHARE AND NET INCOME WAS 23 MILLION OR FIVE CENTS A SHARE ON RESTATED REVENUE OF 735 BILLION FOR KMART BASED IN TROY MICH THE PROFIT OUTLOOK IS YET ANOTHER BIT OF GLUM NEWS AND REPRESENTS THE FIFTH QUARTER IN A ROW OF LOWER EARNINGS IN BIG BOARD TRADING YESTERDAY INVESTORS SENT THE STOCK DOWN 1 OR 56 TO 17 A NEW 52WEEK LOW KMART CHAIRMAN JOSEPH E ANTONINI CITED A TOUGH AND HIGHLY COMPETITIVE RETAIL ENVIRONMENT AS ONE REASON FOR THE SLIDING PROFITS IN ADDITION AFTER KMART RAPIDLY BEGAN MOVING SLOWSELLING GOODS LAST YEAR TO IMPROVE ITS INVENTORY MIX CUSTOMERS SOMETIMES COULDN'T FIND THE ITEMS THEY WANTED THAT'S BECAUSE THE RETAILER DIDN'T REPLENISH ITS SHELVES AS QUICKLY AS IT SHOULD HAVE ANALYSTS SAID BUYERS WERE SOMEWHAT RETICENT ABOUT ADDING TO INVENTORY TOO QUICKLY AT KMART SAID ANALYST JEFFREY EDELMAN OF CJ LAWRENCE MR ANTONINI SAID HE IS TAKING ANOTHER STAB AT GETTING KMART BACK ON TRACK HE SAID THE COMPANY RECENTLY COMPLETED A YEARLONG ASSESSMENT OF EVERYTHING FROM ITS PRICING TO HOW IT TARGETS ITS MERCHANDISE CHICAGOBASED ANDERSEN CONSULTING THE MANAGEMENT AND TECHNOLOGY CONSULTING UNIT OF ARTHUR ANDERSEN & CO IS ASSISTING THE RETAILER KMART BEGAN PUTTING SOME CHANGES INTO EFFECT THIS MONTH INCLUDING HIRING CREWS TO RESTOCK STORES AT NIGHT RATHER THAN DURING STORE HOURS MR ANTONINI SAID HE EXPECTS RESULTS WILL BECOME EVIDENT AS THE YEAR PROGRESSES AND INTO 1995 MR ANTONINI'S RECORD IN MEETING STRATEGIC GOALS HAS BEEN SPOTTY IN 1986 A KMART PLAN SOUGHT TO SURPASS SEARS ROEBUCK & CO BY 1991 AND BECOME THE MOST DOMINANT RETAILER IN AMERICA IN SALES IN MARKET SHARE IN CUSTOMER ACCEPTANCE MR ANTONINI SAID THEN WHILE IT DID OVERTAKE SEARS WALMART STORES INC PASSED UP BOTH RETAILERS TO BECOME THE NATION'S LARGEST AND JUST LAST MONTH SEARS UNSEATED KMART FOR THE NO 2 RETAIL SPOT MR ANTONINI'S SECOND BIG EFFORT A FIVEYEAR STORE RENOVATION EFFORT THAT HAS RISEN IN COST TO 35 BILLION FROM 13 BILLION HASN'T PRODUCED PROFITS STRONG ENOUGH TO PLEASE DEBTRATING AGENCIES OR INVESTORS THE KMART CHIEF EXECUTIVE SAID THE FIRSTQUARTER PROFIT SHORTFALL WHILE DISAPPOINTING DOES NOT ALTER OUR EXPECTATION OF HIGHER EARNINGS FOR ALL OF 1994 HE NOTED THAT FIRSTPERIOD RESULTS ARE USUALLY A RELATIVELY SMALL CONTRIBUTOR TO FULLYEAR RESULTS OUR BUSINESS WILL OBVIOUSLY BE INFLUENCED IMPORTANTLY BY THE STRENGTH OF CONSUMER SPENDING DURING THE REMAINDER OF THE YEAR HE SAID 9404260147 940426 EXECUTONE STOCK INCENTIVE PLAN DARIEN CONN EXECUTONE INFORMATION SYSTEMS INC SAID ITS DIRECTORS APPROVED THE REPURCHASE OF AS MANY AS THREE MILLION COMMON SHARES FOR RESALE TO ITS EXECUTIVES UNDER AN INCENTIVE PLAN THE MAKER AND MARKETER OF VOICEPROCESSING AND COMMUNICATIONS SYSTEMS SAID THE INCENTIVE PLAN AND STOCK REPURCHASE WOULD BE SUBMITTED FOR SHAREHOLDER APPROVAL AT THE ANNUAL MEETING JUNE 23 EXECUTONE HAD 439 MILLION SHARES OUTSTANDING AS OF MARCH 31 9404260146 940426 WHO'S NEWS AT&T CAPITAL CORP AT&T CAPITAL CORP MORRISTOWN NJ JERRE L STEAD EXECUTIVE VICE PRESIDENT OF AT&T CORP AND CHIEF EXECUTIVE OF AT&T GLOBAL INFORMATION SOLUTIONS WAS NAMED A DIRECTOR OF THIS EQUIPMENTLEASING COMPANY FILLING A VACANCY ON THE BOARD AT&T OWNS MORE THAN 80 OF AT&T CAPITAL 9404260145 940426 INTERNATIONAL DEUTSCHE BANK DOWNPLAYS LOSS IN SCHNEIDER GROUP FRANKFURT DEUTSCHE BANK AG SAID FUGITIVE DEVELOPER JUERGEN SCHNEIDER EMPLOYED SYSTEMATIC FRAUD TO HOODWINK IT INTO BANKROLLING HIS RAPID GROWTH INTO ONE OF GERMANY'S BIGGEST PROPERTY EMPIRES MISTAKES UNQUESTIONABLY WERE MADE THE GRAVEST MISTAKE IS THAT WE ALLOWED OURSELVES TO BE DECEIVED DEUTSCHE BANK CHAIRMAN HILMAR KOPPER TOLD A NEWS CONFERENCE ALTHOUGH DEUTSCHE BANK WAS MR SCHNEIDER'S BIGGEST UNDERWRITER ITS UNSECURED RISK IN THE TROUBLED SCHNEIDER GROUP IS RELATIVELY SMALL HE SAID THE IMAGE LOSS BY CONTRAST IS MUCH MORE EXTENSIVE MR KOPPER SAID HIS NEWS CONFERENCE APPEARED TO BE AN ATTEMPT TO DEFLECT CRITICISM BY POLITICIANS AND THE PRESS OF DEUTCHE BANK AND OTHER BANKS FOR LENDING SO MUCH MONEY TO THE SCHNEIDER GROUP SINCE MID1990 MR SCHNEIDER'S TOTAL BANK DEBT ROCKETED ROUGHLY SIXFOLD TO MORE THAN FIVE BILLION MARKS 296 BILLION DEUTSCHE BANK SAID CRITICS CONTEND THE EASY CREDIT LED HIM TO OVEREXTEND HIS OPERATIONS WITH MR SCHNEIDER'S PROPERTY GROUP IN BANKRUPTCYCOURT PROCEEDINGS THE BANKS ARE BEING HELD AT LEAST PARTLY RESPONSIBLE FOR THE POSSIBLE LOSS OF THOUSANDS OF CONSTRUCTION JOBS 9404260144 940426 WHO'S NEWS NATIONAL CITY CORP NATIONAL CITY CORP CLEVELAND CHARLES H BOWMAN 58 YEARS OLD CHIEF EXECUTIVE OFFICER OF BP AMERICA INC A UNIT OF LONDONBASED BRITISH PETROLEUM PLC WAS NAMED A DIRECTOR OF THIS BANK HOLDING COMPANY HIS APPOINTMENT INCREASES THE BOARD TO 15 MEMBERS 9404260143 940426 GSA REPORT SAYS OFFICIAL IMPROPERLY USED RESOURCES WASHINGTON GENERAL SERVICES ADMINISTRATOR ROGER JOHNSON IMPROPERLY USED GOVERNMENT AIRFARE RATES AND HIS GOVERNMENT CREDIT CARD DURING OFFICIAL TRIPS ACCORDING TO A REPORT BY THE INSPECTOR GENERAL OF THE GENERAL SERVICES ADMINISTRATION BUT THE REPORT CONCLUDED THAT MR JOHNSON'S PERSONAL USE OF GOVERNMENT RESOURCES WAS BECAUSE OF UNFAMILIARITY WITH OFFICIAL TRAVEL RULES AND REGULATIONS THE REPORT ALSO STATED THAT MR JOHNSON'S TRIPS DIDN'T VIOLATE RULES THAT PROHIBIT PERSONAL TRAVEL AT GOVERNMENT EXPENSE THE REPORT RECOMMENDS THAT MR JOHNSON USE GOVERNMENT AIR FARES AND CREDIT CARDS ONLY FOR OFFICIAL TRAVEL AND THAT HE ESTABLISH A FILE TO SUPPORT THE OFFICIAL NATURE OF HIS TRIPS AND SUBMIT HIS TRAVEL VOUCHERS ON A MORE TIMELY BASIS THE REPORT WHICH WAS REQUESTED BY MR JOHNSON WAS ISSUED AFTER HE VOLUNTARILY REIMBURSED THE GOVERNMENT FOR CERTAIN TRAVEL OVERNIGHT MAIL AND LONGDISTANCE TELEPHONE CALLS THAT HIS STAFF DETERMINED WERE OF A PERSONAL NATURE RATHER THAN OFFICIAL BUSINESS 9404260142 940426 WHO'S NEWS DNA PLANT TECHNOLOGY CORP DNA PLANT TECHNOLOGY CORP CINNAMINSON NJ ROBERT V IGLEHEART 53 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER OF THIS AGRICULTURAL BIOTECHNOLOGY CONCERN A NEW POSITION THOSE DUTIES WERE PREVIOUSLY PERFORMED BY ROBERT SERENBETZ PRESIDENT AND CHIEF EXECUTIVE OFFICER MR IGLEHEART ALSO WAS NAMED PRESIDENT OF DNA PLANT'S FRESH WORLD SUBSIDIARY WHICH HAD 64 MILLION IN SALES LAST YEAR MR IGLEHEART WAS MOST RECENTLY A CONSULTANT AT ROBERT MANN PACKAGING INC 9404260141 940426 HEALTH FOUNDATION IS ACCUSED OF PLAYING POLITICS WITH GRANTS BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL THE ROBERT WOOD JOHNSON FOUNDATION IN PRINCETON NJ HAS MADE A LOT OF FRIENDS BY GIVING AWAY NEARLY 150 MILLION FOR HEALTHCARE RESEARCH EACH YEAR BUT RECENTLY IT HAS MADE SOME ENEMIES IN MEMBERS OF A PHYSICIANS' GROUP WHO SAY THE FUND HAS A LIBERAL AGENDA FAVORING MANAGED CARE FOUNDATION OFFICIALS DISPUTE THAT PORTRAYAL THEY SAY THEIR 4 BILLION FUND AVOIDS OPENLY POLITICAL PROJECTS AND CAREFULLY SPREADS AROUND GRANTS TO AVOID IDEOLOGICAL BIAS STILL THE FOUNDATION'S PRESIDENT STEVEN SCHROEDER ACKNOWLEDGES THAT AS THE DEBATE OVER HEALTH REFORM INTENSIFIES HIS GROUP'S GRANTS ARE INCREASINGLY LIKELY TO BE CONTROVERSIAL TO AVOID CONTROVERSY MEANS DOING THINGS THAT ARE SO BLAND THAT THEY AREN'T IMPORTANT DR SCHROEDER SAYS WE'RE GOING TO GET OUR SHARE OF POTSHOTS IT'S A RISK THAT WE HAVE TO TAKE FOUNDATIONS IN GENERAL ENJOY WIDE LATITUDE TO BANKROLL CAUSES ACCORDING TO THE WISHES OF THEIR FOUNDERS OR ADMINISTRATORS THERE ARE LIMITS TO THAT FREEDOM THOUGH FOUNDATIONS MUST AVOID POLITICAL ACTIVITY SUCH AS CAMPAIGN CONTRIBUTIONS IN ORDER TO MAINTAIN THEIR TAXEXEMPT STATUS THE JOHNSON FOUNDATION SET UP BY A MEMBER OF THE FAMILY THAT FOUNDED JOHNSON & JOHNSON INC HAS LONG BEEN A FAVORITE SUGAR DADDY FOR HEALTHCARE ACADEMICS AND POLICY MAKERS EACH YEAR THE FOUNDATION AWARDS MORE THAN 500 GRANTS ALMOST ALL FOR HEALTHRELATED PROJECTS RECENT RECIPIENTS RANGE FROM THE RAND CORP THINK TANK IN SANTA MONICA CALIF TO THE EAST CENTRAL FLORIDA CHAPTER OF THE MARCH OF DIMES JOHNSON SPONSORED FOUR PUBLIC FORUMS LAST YEAR IN WHICH HILLARY RODHAM CLINTON DISCUSSED HEALTHCARE ISSUES IN ADDITION DOZENS OF FOUNDATIONGRANT RECIPIENTS HAVE BECOME PROMINENT IN THE HEALTHCARE DEBATE AMONG THEM ARE BROOKINGS INSTITUTION ECONOMIST HENRY AARON HARVARD POLLSTER ROBERT BLENDON AND FORMER CABINET SECRETARY JOSEPH CALIFANO THE JOHNSON FOUNDATION ALSO IS HELPING POLICY MAKERS IN 12 STATES INCLUDING FLORIDA WASHINGTON AND NEW YORK DRAFT THEIR OWN REFORM PROPOSALS WITH GRANTS OF ABOUT 800000 PER STATE MANY OF THESE STATES ARE MAKING HEAVY USE OF MANAGED CARE A FORM OF COSTCONTAINMENT IN WHICH LARGE BLOCKS OF PATIENTS ARE ROUTED TO THE MOST COSTEFFECTIVE GROUPS OF DOCTORS AND HOSPITALS THESE GRANTS HAVE SPARKED PROTESTS FROM A CONSERVATIVE DOCTORS' GROUP THE 4000MEMBER ASSOCIATION OF AMERICAN PHYSICIANS AND SURGEONS THE PHOENIXBASED AAPS IS MUCH SMALLER THAN THE MAIN DOCTORS' ORGANIZATION THE AMERICAN MEDICAL ASSOCIATION AND IS KNOWN AS A BIT OF A GADFLY YOU'LL NEVER FIND THE JOHNSON FOUNDATION SUPPORTING A FREEMARKET SYSTEM SAYS JANE ORIENT EXECUTIVE DIRECTOR OF THE AAPS ALL THEIR STUDIES IN STATES SEEM TO HAVE THE OBJECTIVE OF INCREASING THE USE OF MANAGED CARE AT A RECENT NEWS CONFERENCE DR ORIENT CONTENDED THAT THE JOHNSON FOUNDATION WANTS TO REMAKE AMERICAN MEDICINE ALONG ITS OWN MODEL FOUNDATION EXECUTIVES AND GRANT RECIPIENTS SAY THAT DR ORIENT'S CHARGES ARE GROSSLY EXAGGERATED STILL THE SUDDEN BROADSIDE FROM THE AAPS APPEARS TO HAVE TOUCHED OFF SOME SOULSEARCHING WITHIN BOTH THE FOUNDATION AND ITS MAJOR GRANT RECIPIENTS ABOUT WHETHER THE BIG FUND IS TOO CLOSE TO SOME LIBERAL PLAYERS IN THE HEALTHCARE DEBATE TO THE EXTENT THAT WE'RE SEEN AS PARTISAN IT BLURS OUR EFFECTIVENESS SAYS THE FOUNDATION'S DR SCHROEDER THE FOUNDATION HAS TO BE SOMEWHAT CAREFUL ABOUT THE TERMS THAT IT USES IN PUBLIC SAYS SHELDON GREENFIELD HEAD OF HEALTHSCIENCES RESEARCH AT TUFTS UNIVERSITY AND A GRANT RECIPIENT IF THEY TALK ABOUT LOWCOST HIGHQUALITY MEDICINE WITH EASY ACCESS FOR PATIENTS THEY CAN CALL FOR WHAT THE COUNTRY NEEDS WITHOUT EVER CALLING IT MANAGED CARE NANCY BARRAND A SENIOR PROGRAM OFFICER AT THE JOHNSON FOUNDATION DEFENDS THE STATE AWARDS THE STATES THAT WE PICKED SPANNED THE ENTIRE POLITICAL SPECTRUM OF HEALTHCARE REFORM SHE SAYS OKLAHOMA FOR EXAMPLE IS USING FOUNDATION MONEY TO TRY TO DEVELOP TAXFREE MEDICALSAVINGS ACCOUNTS A CONCEPT FAVORED BY MANY CONSERVATIVES NEW MEXICO IS TINKERING WITH A COOPERATIVE APPROACH TO COVERING THE UNINSURED THAT DOESN'T FIT ANY IDEOLOGICAL LABEL AND NEW YORK STATE HAS USED PART OF ITS GRANT TO LOOK AT A GOVERNMENTRUN SINGLEPAYER INSURANCE SYSTEM AN IDEA WITH LIBERAL BACKING MOST STATES GETTING GRANTS HAVEN'T YET PASSED MAJOR HEALTHCARE LEGISLATION BUT WASHINGTON STATE LAST YEAR ENACTED A PLAN THAT RELIES HEAVILY ON MANAGED CARE STATE OFFICIALS SAY THE JOHNSON MONEY PLAYED A BIG ROLE PEOPLE WE BROUGHT ON BOARD BECAUSE OF ROBERT WOOD JOHNSON DID THE COSTING OUT AND THE STATISTICAL ANALYSIS SAYS SUSAN CRYSTAL A HEALTHCARE SPECIALIST IN THE GOVERNOR'S OFFICE WE HAD THE TOOLS TO BE RESPONSIVE TO THE STATE LEGISLATURE WE WOULD HAVE BEEN REALLY LOST WITHOUT THEM SOME WASHINGTON DOCTORS HOWEVER ARE MORE CRITICAL OF THE FOUNDATION'S ROLE MICHAEL SCHLITT A SEATTLE NEUROSURGEON SAYS HE IS UNHAPPY THAT THE JOHNSON FOUNDATION IS USING THIS ENORMOUS TAXFREE AMOUNT OF MONEY TO ADVANCE MANAGED CARE UNDER THE STATE'S NEW SYSTEM HEALTH PLANS MAY PRESSURE DR SCHLITT TO LOWER HIS RATES THEY ALSO MAY REQUIRE REFERRALS BEFORE HE CAN SEE PATIENTS ON TOP OF HEALTHCARE REFORM THE JOHNSON FOUNDATION ALSO FUNDS MANY PROJECTS THAT AREN'T EXPLICITLY CONTROVERSIAL INCLUDING SUBSTANCEABUSE PROGRAMS CARE FOR THE CHRONICALLY ILL AND EFFORTS TO WIDEN PUBLIC ACCESS TO HEALTH CARE IN BOSTON FOR EXAMPLE TUFTS MEDICAL SCHOOL HAS BEGUN SETTING ASIDE 10 OF THE PLACES IN ITS ENTERING CLASS FOR STUDENTS WHO ARE REGARDED AS ESPECIALLY LIKELY TO GO INTO PRIMARY CARE A GRANT FROM THE JOHNSON FOUNDATION HELPED TUFTS IDENTIFY TRAITS SUCH AS A NONSCIENCE BACKGROUND OR A LOT OF COMMUNITY VOLUNTEER WORK THAT MAY HELP SPOT FUTURE PRIMARYCARE DOCTORS WHEN THEY APPLY TO MEDICAL SCHOOL THE FOUNDATION ALSO PAYS FOR DOZENS OF DOCTORS A YEAR TO BECOME ROBERT WOOD JOHNSON FELLOWS OR CLINICAL SCHOLARS THESE PHYSICIANS WIDEN THEIR HORIZONS BY JOINING CONGRESSIONAL STAFFS IN WASHINGTON CARRYING OUT HEALTHSCIENCES RESEARCH OR GETTING INVOLVED IN OTHER PUBLICPOLICY PROJECTS WHILE SOME OF THESE DOCTORS RETURN TO PRIVATE PRACTICE MANY GO ON TO HIGHLEVEL POSITIONS IN STATE GOVERNMENT OR HEALTH ORGANIZATIONS EVEN THESE PROGRAMS HAVE ATTRACTED THE AAPS'S IRE THE DOCTORS' GROUP IS PROTESTING THE WHITE HOUSE DECISION LAST YEAR TO LET SIX JOHNSON FELLOWS BE PART OF ITS 500MEMBER HEALTHCARE TASK FORCE IN A SUIT IN WASHINGTON DC FEDERAL COURT AGAINST THE TASK FORCE THE DOCTORS' GROUP ACCUSES THE JOHNSON FOUNDATION OF USING BUREAUCRATIC YET SECRETIVE MEANS TO INFLUENCE GOVERNMENT DECISIONMAKING THAT CHARGE BRINGS A LAUGH AND A QUICK DENIAL FROM THE FOUNDATION'S DR SCHROEDER FOR SOME LONGTIME JOHNSON GRANT RECIPIENTS IT'S SURPRISING TO SEE THE FOUNDATION ON THE DEFENSIVE BUT THEN THESE OBSERVERS ARE HARDLY IMPARTIAL THE ROBERT WOOD JOHNSON FOUNDATION ACCOUNTS FOR 70 OF MY REVENUE SAYS DAVID HELMS PRESIDENT OF THE ALPHA CENTER A WASHINGTON DCBASED RESEARCH GROUP HEY I THINK THEY'RE GREAT TO WORK WITH 9404260140 940426 CORRECTIONS & AMPLIFICATIONS THE HUMPHREY DEMOCRAT NEWSPAPER IN HUMPHREY NEB LAID OFF SPORTS REPORTER DEAN BACKES SEVERAL MONTHS BEFORE IT STARTED USING SPORTSWRITER A SOFTWARE PROGRAM TO WRITE HIGHSCHOOL SPORTS STORIES A PAGEONE ARTICLE MARCH 29 LEFT THE IMPRESSION THAT HE WAS LAID OFF AFTER THE NEWSPAPER OBTAINED THE SOFTWARE AND THAT THE AVAILABILITY OF THE SOFTWARE WAS THE IMMEDIATE CAUSE OF HIS DEPARTURE THIS WASN'T THE CASE ALTHOUGH THE WORK PREVIOUSLY DONE BY MR BACKES NOW IS COMPUTERIZED LAZARE KAPLAN INTERNATIONAL INC'S SALES FOR THE THIRD QUARTER ENDED FEB 28 WERE 557 MILLION AN INCREASE OF 41 FROM A YEAR EARLIER NET INCOME FOR THE QUARTER WAS 12 MILLION COMPARED WITH A YEAREARLIER LOSS OF 982000 IN FRIDAY'S HEARD ON THE STREET COLUMN YEAREARLIER FIGURES WERE MISSTATED AS THE LATESTYEAR RESULTS VENEZUELA'S INFLATION RATE WAS 28 FOR MARCH AND 459 FOR ALL OF 1993 ACCORDING TO SALOMON BROTHERS INC THE VENEZUELAN GOVERNMENT RECEIVED ABOUT 60 OF ITS REVENUE FROM PETROLEUM INCOME IN 1993 SAYS SALOMON IN FRIDAY'S CREDIT MARKETS COLUMN THE INFLATION RATE WAS MISSTATED AS MORE THAN 40 MONTHLY AND PROCEEDS FROM OIL AS UP TO 90 OF VENEZUELA'S REVENUE FAXINET WHICH CONVERTS ELECTRONICMAIL MESSAGES ON THE INTERNET INTO FACSIMILES IS A SERVICE OF ANYWHERE ASSOCIATES INC BASED IN BOSTON AN ARTICLE LAST TUESDAY INCORRECTLY IDENTIFIED FAXINET AS A COMPANY 9404260139 940426 TEXACO ARCO POST SHARPLY LOWER PROFIT BUT UNOCAL'S NET SURGED IN FIRST QUARTER BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL TEXACO INC AND ATLANTIC RICHFIELD CO REPORTED SHARP DECLINES IN FIRSTQUARTER EARNINGS REFLECTING THE SIGNIFICANTLY LOWER OIL PRICES THAT HAVE BEEN PLAGUING THE OIL INDUSTRY FOR MONTHS UNOCAL CORP HOWEVER POSTED AN ALMOST FIVEFOLD INCREASE IN QUARTERLY NET WITH MUCH OF THE GAIN REFLECTING CHARGES TAKEN IN LAST YEAR'S FIRST QUARTER FOR ACCOUNTING PURPOSES TEXACO SAID ITS QUARTERLY NET FELL 28 TO 202 MILLION OR 69 CENTS A SHARE FROM 281 MILLION OR 98 CENTS A SHARE IN THE FIRST QUARTER OF 1993 REVENUE SLIPPED 97 TO 743 BILLION SEPARATELY TEXACO SAID SECONDQUARTER EARNINGS WOULD LIKELY TAKE INTO ACCOUNT A BENEFIT OF 850 MILLION FROM THE SALE OF ITS CHEMICAL OPERATIONS AS WELL AS A CHARGE OF NO MORE THAN 50 MILLION RELATED TO THE SAME SALE THE COMPANY BASED IN WHITE PLAINS NY ALREADY TOOK 174 MILLION IN CHARGES LAST YEAR FOR THE SALE TO HUNTSMAN CORP OF SALT LAKE CITY THE TRANSACTION WAS FINALIZED LAST WEEK IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING TEXACO ROSE 625 CENTS TO 65625 ATLANTIC RICHFIELD CLOSED AT 9925 UP 1125 WHILE UNOCAL FINISHED AT 28375 UP 1375 TEXACO CHAIRMAN ALFRED C DECRANE JR SAID THE BENEFITS FROM COSTCUTTING AND INCREASED CRUDE OIL PRODUCTION WERE OFFSET BY THE IMPACT OF SIGNIFICANTLY LOWER OIL PRICES HE SAID CRUDE PRICES IN THE US WERE MORE THAN 4 A BARREL LOWER IN THE 1994 FIRST QUARTER THAN DURING THE SAME PERIOD LAST YEAR AS A RESULT MR DECRANE SAID EXPLORATION AND PRODUCTION INCOME IN THE US DURING THE LATEST QUARTER WAS PEGGED AT 75 MILLION COMPARED WITH 133 MILLION IN LAST YEAR'S FIRST QUARTER OVERSEAS INCOME FROM THIS SECTOR FELL TO 45 MILLION FROM 79 MILLION THE LOW PRICES HOWEVER SPARKED A JUMP IN US REFINING AND MARKETING INCOME WHICH ROSE TO 78 MILLION FROM 49 MILLION OVERSEAS RESULTS FROM THIS BUSINESS WERE ABOUT BREAKEVEN REFLECTING A LESS ROBUST INTERNATIONAL ECONOMY ATLANTIC RICHFIELD'S FIRSTQUARTER NET FELL 43 TO 149 MILLION OR 92 CENTS A SHARE FROM 260 MILLION OR 160 A SHARE A YEAR EARLIER REVENUE FELL 16 TO 38 BILLION ARCO CHAIRMAN LODWRICK COOK SAID THE AVERAGE PRICE THE LOS ANGELESBASED COMPANY RECEIVED FOR CRUDE OIL DURING THE LATEST QUARTER WAS 783 A BARREL DOWN FROM 1231 LAST YEAR AND ITS WORLDWIDE PRODUCTION OF OIL AND NATURAL GAS DECLINED TO 694200 FROM 709800 BARRELS DAILY OUTPUT FELL AS A RESULT OF ASSET SALES AS WELL AS THE CONTINUED AGING OF CERTAIN OIL FIELDS THE DECLINE WAS PARTIALLY OFFSET BY THE STARTUP OF THE COMPANY'S POINT MCINTYRE FIELD IN ALASKA HELPING TO PROP UP ITS BOTTOM LINE ARCO'S REFINING AND MARKETING BUSINESS SHOWED INCOME OF 95 MILLION DURING THE FIRST QUARTER SLIGHTLY HIGHER THAN A YEAR EARLIER EARNINGS FROM THE CHEMICAL AND COAL SECTORS HOWEVER DECLINED UNOCAL ALSO BASED IN LOS ANGELES POSTED QUARTERLY NET INCOME OF 54 MILLION OR 19 CENTS A SHARE COMPARED WITH 11 MILLION OR ONE CENT A SHARE DURING THE SAME PERIOD LAST YEAR REVENUE SLID BY 172 TO 192 BILLION THAT DECLINE WAS DUE TO THE SALE OF CERTAIN OPERATIONS LAST YEAR AND THE CONTINUING PHASEOUT OF RETAIL GASOLINE MARKETING IN THE SOUTHEASTERN US EXCLUDING THE EFFECT OF SPECIAL ITEMS MOSTLY THE ACCOUNTING CHANGES LAST YEAR UNOCAL'S EARNINGS NET WOULD HAVE DECLINED 37 TO 62 MILLION OR 22 CENTS A SHARE FROM 98 MILLION OR 37 CENTS A SHARE IN THE YEAREARLIER QUARTER SPECIAL ITEMS IN THE 1994 FIRST QUARTER INCLUDED PROCEEDS FROM THE SETTLEMENT OF LITIGATION AND THE SALE OF VARIOUS OIL AND GAS ASSETS THERE WERE ALSO WRITEDOWNS OF SOME INVESTMENTS AND PROVISIONS FOR ABANDONMENT AND REMEDIATION OF THE COMPANY'S GUADALUPE OIL FIELD 9404260138 940426 HEARD ON THE STREET PARTS DISTRIBUTORS MAY PROVIDE SOLID FOOTING FOR PURSUING GROWTH IN ELECTRONICS INDUSTRY BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WIDGETS COME AND GO BUT DISTRIBUTION IS FOREVER THIS BELIEF HAS DRIVEN SOME MONEY MANAGERS TO LOAD UP ON THE STOCKS OF ELECTRONICSDISTRIBUTION COMPANIES IT'S A SAFE WAY TO PLAY THE GROWTH IN THE ELECTRONICS INDUSTRY SAYS L ROY PAPP MANAGING PARTNER OF A PHOENIX MONEYMANAGEMENT FIRM BEARING HIS NAME IT'S SAFE BECAUSE THERE'S NO RISK THAT YOU'LL GET LEAPFROGGED TECHNOLOGICALLY MR PAPP LIKE SOME OTHER MONEY MANAGERS IS ESPECIALLY KEEN ON MARSHALL INDUSTRIES AN EL MONTE CALIF ELECTRONICS DISTRIBUTOR WHOSE STOCK CLOSED YESTERDAY AT 25 1/4 ON THE NEW YORK STOCK EXCHANGE BUT THERE ARE PLENTY OF PLAYERS TO CHOOSE FROM THE TWO BIGGEST ELECTRONICS DISTRIBUTORS ARE AVNET AND ARROW ELECTRONICS AND SMALLER COMPANIES BESIDES MARSHALL INCLUDE ANTHEM ELECTRONICS KENT ELECTRONICS PIONEERSTANDARD ELECTRONICS PREMIER INDUSTRIAL AND WYLE LABORATORIES THESE COMPANIES TAKE COMPONENTS MADE BY SUCH GIANTS AS INTEL MOTOROLA AND TEXAS INSTRUMENTS AND SELL THEM TO EQUIPMENT MAKERS MUCH OF THE DISTRIBUTION BUSINESS INVOLVES SEMICONDUCTORS THOUGH DISTRIBUTORS ALSO HANDLE CONNECTORS RESISTORS CAPACITORS DISK DRIVES AND COMPUTER BOARDS CHICAGO'S WANGER ASSET MANAGEMENT HAS STAKES IN ANTHEM KENT AND PIONEERSTANDARD WE PARTICIPATE FULLY IN THE GROWTH OF THE ELECTRONICS INDUSTRY BUT THESE GUYS ARE PRICEPROTECTED SAYS WANGER ANALYST CHUCK MCQUAID IF THE PRICE OF A COMPONENT DROPS FROM 100 TO 90 THEY'LL GET A 10 CREDIT FROM THE SUPPLIER NOT ONLY IS THE ELECTRONICS BUSINESS BOOMING SAYS MR MCQUAID BUT THE DISTRIBUTORS' ROLE IS GROWING ELECTRONICCOMPONENT MANUFACTURERS ARE INCREASINGLY FOCUSING ON BIG ACCOUNTS LEAVING DISTRIBUTORS TO SELL TO SMALL AND MIDSIZED FIRMS YOU CAN MAKE THE ARGUMENT THAT DISTRIBUTION COMPANIES ARE GAINING MARKET SHARE AS ELECTRONICS BECOME MORE PERVASIVE MR MCQUAID SAYS THERE ARE MANY MORE PEOPLE USING ELECTRONICS IN THEIR PRODUCTS THE LARGE ELECTRONICS MANUFACTURERS CAN'T SERVICE ALL OF THESE PEOPLE DIRECTLY ANALYST MARK HASSENBERG WITH DONALDSON LUFKIN & JENRETTE IS RECOMMENDING MARSHALL AS WELL AS AVNET AND ARROW AVNET AND ARROW HAVE SIMILAR VALUATIONS HE SAYS MARSHALL IS THE CHEAPEST OF THE THREE AND HAS BEEN HISTORICALLY IT DOESN'T GET THE SAME COVERAGE BY ANALYSTS AND IT'S LESS LIQUID ALL THREE STOCKS HAVE COME DOWN HARD OVER THE PAST FEW WEEKS AS PEOPLE HAVE WORRIED ABOUT SEMICONDUCTOR STOCKS THE INDUSTRY IS GRADUALLY BEING CONCENTRATED IN FEWER HANDS MR HASSENBERG NOTES BOTH ARROW AND AVNET FOR INSTANCE HAVE REGULARLY USED ACQUISITIONS TO BOOST GROWTH I WOULDN'T BE SURPRISED IF THERE WAS SOME CONSOLIDATION AMONG THE TOP FIVE OR SIX DISTRIBUTION COMPANIES HE SAYS HE RECKONS ONE OF THE SMALLER PLAYERS SUCH AS ANTHEM MARSHALL PIONEERSTANDARD OR WYLE MIGHT BE ACQUIRED MR PAPP THE MONEY MANAGER SAYS HE WOULD RATHER SEE MARSHALL STAY INDEPENDENT THEY MAY GET AN OFFER IN THE NEXT YEAR OR TWO HE SAYS I HOPE THEY DON'T GET BOUGHT SURE I'LL GET A PREMIUM BUT I DON'T WANT A PREMIUM I WANT THE COMPANY I THINK IT'S AN ATTRACTIVE STOCK FOR THE NEXT 10 YEARS MARSHALL HAS COME FROM EIGHTH OR NINTH LARGEST DISTRIBUTOR A DECADE AGO TO THIRD OR FOURTH TODAY MR PAPP SAYS MOST OF THE ANALYSTS THAT FOLLOW THE INDUSTRY SAY THEY DON'T DO MUCH WRONG HE LOOKS FOR MARSHALL TO EARN 190 A SHARE IN THE FISCAL YEAR THAT ENDS IN MAY NEXT YEAR THEY'LL PROBABLY EARN 2 HE SAYS AND THAT'S CONSERVATIVE AS HE SEES IT IF WE HAVE A MODERATE GROWTH RATE IN THE COUNTRY I THINK THEY'LL GROW BETTER THAN 10 A YEAR IN REVENUE 13 PROBABLY EARNINGS WILL GROW AT ROUGHLY THAT RATE BUT IT'LL BE CYCLICAL RICHARD WEISS A PORTFOLIO MANAGER WITH MILWAUKEE'S STRONG/CORNELIUSON CAPITAL MANAGEMENT ALSO LIKES MARSHALL IT WAS GETTING A LITTLE BIT PRICEY BUT IT HAS COME BACK DOWN MR WEISS SAYS A LOT OF COMPANIES WE TALK TO USE MARSHALL AS A DISTRIBUTOR AND THEY ALL LIKE IT ALTHOUGH THE OUTLOOK FOR ELECTRONICS DISTRIBUTORS NOW SEEMS ROSY AN ECONOMIC DOWNTURN COULD QUICKLY CHANGE THINGS THE INDUSTRY IS AFRAID THAT THIS CYCLE IS LONGLIVED AT THREE YEARS MR PAPP SAYS BUT WANGER'S MR MCQUAID DOESN'T BELIEVE THE FEARS ARE JUSTIFIED THE INDUSTRY HAS A REPUTATION FOR BEING QUITE CYCLICAL HE CONCEDES BUT WE THINK THE STOCKS ARE CHEAP BECAUSE WE THINK THE CYCLE WILL LAST QUITE AWHILE IT'S HARD TO SEE THE CYCLE PEAKING IN 1994 WHEN THE ECONOMY IS SO STRONG 9404260137 940426 WHAT'S NEWS WORLDWIDE SOUTH AFRICA WAS ROCKED BY TERRORIST BLASTS ON THE EVE OF ITS ELECTION BOMBERS STRUCK TWICE ON THE DAY BEFORE THE COUNTRY'S HISTORIC ALLRACE ELECTION KILLING 12 PEOPLE POLITICAL LEADERS URGED VOTERS TO BE UNAFRAID AND ORDERED OUT 100000 POLICE THE EXPLOSIONS ONE IN A JOHANNESBURG SUBURB AND THE OTHER IN PRETORIA CAME A DAY AFTER A BOMB IN DOWNTOWN JOHANNESBURG KILLED NINE POLICE SUSPECTED THAT ALL THREE BOMBINGS WERE THE WORK OF WHITE RIGHTWINGERS TRYING TO DISRUPT THE ELECTIONS THERE WERE AT LEAST 10 SMALLER BOMBINGS SUNDAY AND YESTERDAY THAT CAUSED NO CASUALTIES BUT ESCALATED TENSIONS ELECTRICITY CABLES POLLING STATIONS AND BLACK TAXI STANDS WERE TARGETED CLINTON HAS DECIDED AGAINST NEW TAXES TO PAY FOR WELFARE REFORM THE PRESIDENT NOW FAVORS A STRIPPEDDOWN PROGRAM THAT WOULD BE FUNDED SOLELY THROUGH BUDGET CUTS HIS DECISION MADE IN THE PAST FEW DAYS ENDS NEARLY TWO MONTHS OF ADMINISTRATION INFIGHTING OVER HOW SWEEPING THE WELFARE PLAN OUGHT TO BE THE CLINTON PROGRAM IS EXPECTED TO COST 95 BILLION OVER FIVE YEARS LESS THAN NEARLY ANYONE IN THE ADMINISTRATION HAD ANTICIPATED CLINTON ALSO INTENDS TO ENDORSE LEGISLATION THAT WOULD REMOVE THE SOCIAL SECURITY ADMINISTRATION FROM THE DEPARTMENT OF HEALTH AND HUMAN SERVICES AND MAKE IT AN INDEPENDENT AGENCY THE WEST AND RUSSIA LAUNCHED A NEW DIPLOMATIC INITIATIVE FOR BOSNIA SERB FORCES ROLLED BACK ARTILLERY AND TANKS FROM GORAZDE ALLOWING THE US EUROPEANS AND RUSSIA TO LAUNCH A NEW PEACE EFFORT THE INITIATIVE WAS ANNOUNCED BY SECRETARY OF STATE CHRISTOPHER AND BRITISH FOREIGN SECRETARY HURD THE SERBS MEANWHILE BLOCKED A UN AID CONVOY HEADED FOR GORAZDE DESPITE PLEDGES TO ALLOW ACCESS TO THE TOWN THE UN EVACUATED 91 MORE WOUNDED PEOPLE THE SERBS APPEARED TO BE PULLING BACK EVEN FARTHER FROM GORAZDE TO MEET NATO'S DEMAND THAT THEIR TROOPS BE AT LEAST 12 MILES FROM THE TOWN BY TONIGHT JAPAN'S SOCIALIST PARTY QUIT THE RULING COALITION ELIMINATING THE GOVERNMENT'S PARLIAMENTARY MAJORITY THE MOVE WHICH CAME ONLY HOURS AFTER PARLIAMENT HAD ELECTED TSUTOMU HATA AS JAPAN'S NEW PRIME MINISTER DELAYED THE SELECTION OF A CABINET AND BROUGHT NEW POLITICAL TURMOIL TO THE COUNTRY HAITIAN SOLDIERS MASSACRED AT LEAST 23 FISHERMEN AND MERCHANTS NEAR THE WESTERN COASTAL CITY OF GONAIVES ACCORDING TO WITNESSES SATURDAY'S KILLINGS OCCURRED IN A NEIGHBORHOOD THAT HAS BEEN A POLITICAL STRONGHOLD OF OUSTED PRESIDENT ARISTIDE THE INCIDENT FOLLOWED A SERIES OF RECENT ATTACKS ON HAITI'S PRODEMOCRACY MOVEMENT ARMED MEN KIDNAPPED THE SON OF THE OWNER OF MEXICO'S SECONDLARGEST SUPERMARKET CHAIN GRUPO GIGANTE ANGEL LOSADA MORENO VICE CHAIRMAN OF THE COMPANY WAS APPARENTLY PULLED OUT OF HIS VAN BY GUNMEN HIS KIDNAPPING WAS THE LATEST IN A SERIES OF EVENTS THAT HAVE RATTLED MEXICO'S ECONOMY AND CURRENCY EL SALVADOR'S PRESIDENTELECT PLEDGED TO GIVE THE LEFTIST OPPOSITION A ROLE IN HIS NEW GOVERNMENT ARMANDO CALDERON SOL OF THE RULING RIGHTWING ARENA PARTY DEFEATED RUBEN ZAMORA THE LEFTIST CANDIDATE BY A 21 MARGIN ON SUNDAY CALDERON SOL WHO CAMPAIGNED ON A TOUGH ANTICOMMUNIST PLATFORM WILL BEGIN HIS FIVEYEAR TERM ON JUNE 1 RWANDA'S CAPITAL WAS HIT BY HEAVY SHELLING AND THE UN SAID IT WAS GETTING DISTURBING REPORTS OF FIGHTING AND NEW MASSACRES IN THE COUNTRYSIDE TUTSI REBEL FORCES EVACUATED HUNDREDS OF PEOPLE FROM KIGALI AHEAD OF A PROMISED UNILATERAL CEASEFIRE A MILITARY COUP FAILED IN NEARBY BURUNDI WHEN MUTINOUS PARATROOPERS THREW DOWN THEIR WEAPONS AND FLED WITHOUT FIRING A SHOT SIX SOLDIERS WERE ARRESTED AND THREE WERE BEING SOUGHT IN THE COUP ATTEMPT ISRAEL'S RABIN BEGAN A FOURDAY VISIT TO RUSSIA WHERE HE PLANS TO MEET WITH OFFICIALS ON THE ISRAELIPLO PEACE PROCESS MEANWHILE PLO NEGOTIATORS IN CAIRO WERE SAID TO BE SEEKING A PUBLIC STATEMENT OF SUPPORT FROM PLO HEADQUARTERS IN TUNIS AFTER THEY WERE CRITICIZED BY A GROUP OF PROMINENT PALESTINIANS FROM THE OCCUPIED TERRITORIES RUSSIA'S FORMER VICE PRESIDENT URGED OPPONENTS OF YELTSIN TO UNITE AGAINST THE PRESIDENT RUTSKOI MADE HIS APPEAL JUST FOUR DAYS BEFORE YELTSIN IS DUE TO SIGN A POLITICAL TRUCE WITH SOME OPPOSITION MEMBERS 9404260136 940426 WHO'S NEWS DIED DONALD J ATWOOD 69 DEPUTY SECRETARY OF DEFENSE FROM 1989 TO 1993 AND FORMER VICE CHAIRMAN OF GENERAL MOTORS CORP SUNDAY IN ROYAL OAK MICH 9404260135 940426 FED MULLS FEES FOR OVERDRAFTS OF US ENTERPRISES BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL RESERVE IS CONTEMPLATING CHARGING GOVERNMENTSPONSORED ENTERPRISES SUCH AS THE FEDERAL NATIONAL MORTGAGE ASSOCIATION FOR THEIR DAYLIGHT OVERDRAFTS THE FED THIS MONTH BEGAN CHARGING DEPOSITORY INSTITUTIONS FOR DAYLIGHT OVERDRAFTS WHICH OCCUR WHEN A BANK USING THE FEDWIRE SYSTEM TRANSFERS OUT MORE CASH THAN IT RECEIVES AND OVERDRAWS ITS RESERVE ACCOUNT AT THE FED THE OVERDRAFTFEE POLICY AIMS AT REDUCING RISKS IN THE PAYMENTS SYSTEM THE FED'S BOARD OF GOVERNORS IS SLATED TO CONSIDER AN INTERPRETATION OF THIS POLICY THAT WOULD EXTEND FEES TO OVERDRAFTS BY GOVERNMENTSPONSORED ENTERPRISES UNDER THE PROPOSAL THE SAME FEES SET FOR BANK OVERDRAFTS WOULD APPLY TO GOVERNMENTSPONSORED ENTERPRISES ALTHOUGH THERE ARE NO FIRM FIGURES ESTIMATES INDICATE THAT THE FEE ON ALL OF THE GOVERNMENTSPONSORED ENTERPRISES COULD RAISE MILLIONS OF DOLLARS ANNUALLY THE FED ON APRIL 14 BEGAN CHARGING BANKS FOR THEIR DAYLIGHT OVERDRAFTS THE FEE WHICH STARTS AT AN ANNUAL RATE OF 10 CENTS FOR EACH 100 OF DAILY OVERDRAFTS IS TO RISE IN LATER YEARS THE PROPOSED CHANGE WHICH IS SUBJECT TO MODIFICATION BEFORE THE FED CONSIDERS IT WOULDN'T TAKE EFFECT UNTIL OCT 1 IT WOULD COVER FANNIE MAE THE FEDERAL HOME LOAN MORTGAGE CORP THE FEDERAL HOME LOAN BANK SYSTEM THE FARM CREDIT SYSTEM AND THE STUDENT LOAN MARKETING ASSOCIATION THE FED IS TO CONSIDER THE MATTER AT A BOARD MEETING THURSDAY FANNIE MAE AND FREDDIE MAC CONGRESSIONALLY CHARTERED SHAREHOLDEROWNED COMPANIES THAT ARE MAJOR PLAYERS IN MORTGAGE FINANCE QUESTION THE FED'S AUTHORITY TO CHARGE THEM FOR DAYLIGHT OVERDRAFTS FANNIE MAE TOLD THE FED THAT SUBJECTING IT TO OVERDRAFT FEES IS UNAUTHORIZED UNNECESSARY AND MAY BE COUNTERPRODUCTIVE THE COMPANY SAID THAT REQUIRING IT TO PAY SUCH FEES MIGHT WELL INCREASE RATHER THAN REDUCE INSTABILITY IN THE PAYMENT SYSTEM FREDDIE MAC VICE PRESIDENT MITCHELL DELK SAID WE BELIEVE THE FED'S LEGAL AUTHORITY TO ASSESS THIS FEE ON THE GSES IN GENERAL AND ON FREDDIE MAC IN PARTICULAR IS DUBIOUS BUT HE SAID THE COMPANY WILL WAIT FOR THE FED TO ACT BEFORE DECIDING WHAT ACTIONS TO TAKE THE FEDERAL HOME LOAN BANK SYSTEM'S OFFICE OF FINANCE SAID IT SHARES FANNIE MAE'S AND FREDDIE MAC'S CONCERNS HOWEVER A SALLIE MAE SPOKESWOMAN SAID THE PROPOSAL WILL HAVE NO MATERIAL IMPACT ON ITS OPERATIONS AND JAMES BRICKLEY HEAD OF THE FEDERAL FARM CREDIT BANKS FUNDING CORP FISCAL AGENT FOR THE FARM CREDIT SYSTEM CITED A GREAT WORKING RELATIONSHIP WITH THE FED AND THE EXPECTATION THAT IT WILL CONTINUE 9404260134 940426 CALFED POSTS BIG LOSS FOR 1ST QUARTER CITES LOANLOSS PROVISION LOS ANGELES CALIFORNIA FEDERAL BANK SAID A PREVIOUSLY ANNOUNCED 280 MILLION LOANLOSS PROVISION MADE ITS FIRSTQUARTER LOSS 3263 MILLION OR 1153 A SHARE WITHOUT THE LOANLOSS PROVISION CALFED'S FIRSTQUARTER LOSS WAS 463 MILLION OR 169 A SHARE IN THE YEARAGO FIRST QUARTER CALFED EARNED 105 MILLION OR 40 CENTS A SHARE CALFED'S LATEST FIRSTQUARTER RESULTS ALSO INCLUDE PROVISIONS FOR LOAN LOSSES FROM THE NORTHRIDGE EARTHQUAKE AND CONTINUED DEPRESSION OF THE SOUTHERN CALIFORNIA REALESTATE MARKET THE BANK SAID CALFED SAID IN FEBRUARY THAT IT PLANNED TO TAKE THE 280 MILLION PROVISION FOR LOAN LOSSES AS PART OF AN ACCELERATED DRIVE TO CLEANSE ITSELF OF SOME 1 BILLION IN NONPERFORMING AND OTHER ASSETS BY THE SECOND QUARTER ITS ASSET CLEANUP COMES AFTER MUCH OF CALIFORNIA'S FINANCIAL COMMUNITY HAS ALREADY WRITTEN OFF ITS LOSSES FROM THE STATE'S REALESTATE SLUMP AND AFTER CALFED REJECTED A CONDITIONAL ACQUISITION BID BY CROSSSTATE RIVAL GOLDEN WEST FINANCIAL CORP OAKLAND CALIF EDWARD HARSHFIELD CALFED'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID CALFED'S BALANCESHEET CLEANUP WAS ON SCHEDULE WHEN COMPLETE CALFED SAID IT EXPECTS ITS LEVEL OF NONPERFORMING ASSETS WILL DROP ON A PROFORMA BASIS FROM 487 OF TOTAL ASSETS AT MARCH 31 TO A MORE COMFORTABLE 198 CALFED SAID LAST WEEK THAT IT HAD SOLD 231 MILLION OF NONPERFORMING AND OTHER RESIDENTIAL ASSETS AS PART OF ITS BULK SALES PROGRAM PRICES FOR THE SALES WERE CONSISTENT WITH EXPECTATIONS IT SAID 9404260133 940426 WHO'S NEWS UAL CORP UAL CORP CHICAGO CAPT ROGER HALL CHAIRMAN OF THE MASTER EXECUTIVE COUNCIL OF THE PILOTS UNION OF UNITED AIRLINES WAS SELECTED BY THE LABOR GROUP TO SERVE AS ITS REPRESENTATIVE ON THE PROPOSED NEW BOARD OF THIS AIRLINE HOLDING COMPANY LED BY THE PILOTS AND MACHINISTS UNIONS MOST OF UNITED'S EMPLOYEES HAVE AGREED TO WAGE AND WORKRULE CONCESSIONS IN EXCHANGE FOR BOARD REPRESENTATION AND A MAJORITY STAKE IN UAL THE NEW BOARD COMES INTO POWER IF UAL SHAREHOLDERS APPROVE THE MAJORITYBUYOUT TRANSACTION WHICH MR HALL HELPED DEVELOP LAST YEAR 9404260132 940426 TECHNOLOGY & HEALTH MEDICALIMPLANT FIRMS MAY FACE SUPPLY SHORTAGES BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL MANUFACTURERS OF MEDICAL IMPLANTS SUCH AS HEART VALVES AND PACEMAKERS MAY FACE SUPPLY SHORTAGES IN COMING YEARS THAT COULD FORCE THEM OUT OF BUSINESS ACCORDING TO THE TRADE ASSOCIATION OF MEDICAL DEVICE MAKERS JAMES BENSON SENIOR VICE PRESIDENT OF THE HEALTH INDUSTRY MANUFACTURERS ASSOCIATION OR HIMA SAID THE SHORTAGES MAY COME AS A RESULT OF CHEMICAL MAKERS' ACTIONS TO CURTAIL THEIR LIABILITY FOR MEDICAL DEVICES THAT CONTAIN THEIR PRODUCTS HIMA IS LOBBYING FOR LEGISLATION TO PROTECT THE RAW MATERIAL SUPPLIERS A REPORT OF THE SHORTAGES FIRST APPEARED IN THE NEW YORK TIMES ACTIONS BY CHEMICAL MAKERS DOW CHEMICAL CO DOW CORNING CORP A JOINT VENTURE OF DOW CHEMICAL AND CORNING INC AND DUPONT CO TO END SALES OF MATERIALS USED IN IMPLANTABLE DEVICES ARE CAUSING THE CONCERN AND DRYING UP THE VENTURE CAPITAL ON WHICH MUCH OF THE INDUSTRY RUNS MR BENSON SAID MOST OF THE MAKERS OF MEDICAL DEVICES ARE SMALL BUSINESSES THE TRADE ASSOCIATION SAID PATIENTS WON'T FEEL THE SHORTAGE OF THE RAW MATERIALS FOR A FEW YEARS MR BENSON NOTED BECAUSE COMPANIES HAVE STOCKED UP ON SOME OF THE MATERIALS OVER THE PAST FEW YEARS DOW CHEMICAL BASED IN MIDLAND MICH AND DUPONT BASED IN WILMINGTON DEL HAVE ALERTED CUSTOMERS THAT THEY WILL RESTRICT THE SALE OF SOME MATERIALS USED IN IMPLANTABLE MEDICAL DEVICES THE COMPANIES SAID THE MATERIALS WEREN'T DEVELOPED FOR MEDICAL USE AND THEY HAVE LITTLE CONTROL OVER THEIR APPLICATION IN MEDICAL DEVICES BUT THE CHEMICAL COMPANIES ARE OFTEN NAMED IN LAWSUITS BY PATIENTS WHO CLAIM HARM FROM DEVICES THAT INCLUDE THE MATERIALS DOW CHEMICAL SAID IT WILL HALT SALES OF PELLETHANE POLYURETHANE PLASTIC MATERIAL TO MAKERS OF LONGTERM IMPLANTED DEVICES NEXT YEAR THE MATERIAL IS WIDELY USED TO COVER PACEMAKER WIRES A USE WHICH REPRESENTS LESS THAN 05 OF DOW CHEMICAL'S ANNUAL PELLETHANE SALES VOLUME THE COMPANY SAID THE MARKET'S SMALL SIZE DIDN'T WARRANT THE RESOURCES INCLUDING LEGAL AND TECHNICAL SUPPORT THAT IT REQUIRED DOW CORNING DISCONTINUED ITS PRODUCTION OF IMPLANTGRADE SILICONE LAST YEAR COSTS SUCH AS FOR INSURANCE WERE HIGHER THAN THE 15 MILLION IN SALES A YEAR SAID RICHARD HOOVER BUSINESS MANAGER FOR MEDICAL MATERIALS THE MIDLAND MICH COMPANY WAS THE ONLY MAKER OF IMPLANTGRADE SILICONE BUT SEVERAL SMALL COMPANIES HAVE STEPPED FORWARD TO FILL THE VOID ON AN INTERIM BASIS HE NOTED DUPONT NOTIFIED CUSTOMERS IT WOULD END SALES OF MATERIALS SUCH AS TEFLON AND DACRON FOR USE IN MEDICAL IMPLANTABLE DEVICES BECAUSE OF LIABILITY CONCERNS BUT ALLOWED CUSTOMERS TO BUY AS MUCH AS THREE YEARS' SUPPLY SAID KATHERINE KNOX A DUPONT BUSINESS MANAGER THE AMOUNT OF MATERIAL USED IN AN IMPLANT REPRESENTED A FEW CENTS EACH IN DUPONT SALES BUT DEFENDING ITSELF AGAINST LITIGATION COULD COST THE COMPANY MILLIONS OF DOLLARS SHE SAID 9404260131 940426 WHO'S NEWS GATX CORP GATX CORP CHICAGO DAVID M EDWARDS WAS NAMED VICE PRESIDENTFINANCE AND CHIEF FINANCIAL OFFICER OF THIS TRANSPORTATIONEQUIPMENT CONCERN MR EDWARDS 43 YEARS OLD IS CURRENTLY SENIOR VICE PRESIDENTFINANCE AND ADMINISTRATION OF GATX CAPITAL CORP HE SUCCEEDS JOHN F CHLEBOWSKI 48 WHO WAS ELECTED PRESIDENT OF GATX TERMINALS CORP 9404260130 940426 UNITED VIDEO SATELLITE TULSA OKLA UNITED VIDEO SATELLITE GROUP SAID ITS SPACECOM SYSTEMS SUBSIDIARY REACHED FINAL AGREEMENT WITH CLOSELY HELD PAGING PARTNERS CORP OF FREEHOLD NJ TO DISTRIBUTE PAGING DATA VIA SATELLITE FOR THE PAGING PARTNERS' NEWLY EXPANDED SERVICE AREA IN THE NORTHEAST CORRIDOR FROM BOSTON TO WASHINGTON DC TERMS WEREN'T DISCLOSED PAGING PARTNERS WHICH OPERATES A ONEWAY WIRELESS MESSAGING SYSTEM IN NEW YORK CITY AND PARTS OF FIVE NORTHEAST STATES SAID IT EXPECTS TO COMPLETE NEXT YEAR CONSTRUCTION OF A PAGING SYSTEM ALONG THE BOSTONWASHINGTON CORRIDOR PAGING PARTNERS SAID THE SYSTEM WILL TRANSMIT TEXT TO PERSONAL COMPUTERS EQUIPPED WITH PAGING MODEMS 9404260129 940426 WHO'S NEWS ARMSTRONG WORLD INDUSTRIES INC ARMSTRONG WORLD INDUSTRIES INC LANCASTER PA GEORGE A LORCH PRESIDENT AND CHIEF EXECUTIVE OF THIS PRODUCER OF FLOOR COVERINGS AND BUILDING PRODUCTS WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN MR LORCH SUCCEEDS WILLIAM W ADAMS WHO IN FEBRUARY SAID HE WOULDN'T SEEK REELECTION TO THE POST AND PLANNED TO RETIRE 9404260128 940426 CONTROVERSIAL MISSOURI SCHOOLS PROJECT IS BRINGING MODEST GAINS STUDY FINDS BY ROCHELLE SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL THE BILLIONDOLLAR EFFORT TO DESEGREGATE KANSAS CITY MO SCHOOLS BY CREATING SPECIALIZED MAGNET SCHOOLS HAS PRODUCED ONLY MODEST ACADEMIC AND RACIAL GAINS A STUDY BY THE HARVARD PROJECT ON SCHOOL DESEGREGATION HAS CONCLUDED THE DISTRICT HAS SPENT MORE THAN 12 BILLION SINCE 1987 ON THE COURTORDERED PLAN BUT THE PERCENTAGE OF MINORITY STUDENTS HAS INCREASED TO 748 IN THE 199293 ACADEMIC YEAR FROM 735 IN 198687 THE STUDY SAID THE PERCENTAGE OF MINORITIES MAY HAVE INCREASED MORE RAPIDLY WITHOUT SUCH A PLAN BUT THE SCHOOLS HAVE NOT SUCCEEDED IN ATTRACTING AND RETAINING MANY WHITES FROM SUBURBAN SCHOOL DISTRICTS SAID ALISON MORANTZ THE STUDY'S AUTHOR ONLY 65 OF WHITE TRANSFERS STAYED A SECOND YEAR SHE SAID TRYING TO BRIBE WHITE PARENTS FROM THE SUBURBS INTO SENDING THEIR KIDS INTO THE INNER CITY EVEN IF THESE SCHOOLS HAVE TERRIFIC FACILITIES IS UNLIKELY TO ACHIEVE SIGNIFICANT RESULTS MS MORANTZ SAID PART OF THE PROBLEM SHE SAID WAS THAT THE COURT FAILED TO SET EXPLICIT EDUCATIONAL GOALS FOR THE DISTRICT AND THE STATE DID LITTLE TO MONITOR THE PLAN KANSAS CITY SCHOOL SUPERINTENDENT WALTER MARKS SAID IT WAS REALLY TOO EARLY TO ASSESS THE PLAN'S EFFECT THE FULL PROGRAM HAS BEEN IN PLACE ONLY TWO YEARS HE SAID TOO SHORT A TIME FOR ACADEMIC ACHIEVEMENT TO CHANGE ALTHOUGH THE DISTRICT HAS NOT INCREASED ITS PERCENTAGE OF WHITE STUDENTS HE SAID HE VIEWED THE DISTRICT'S ABILITY TO STEM WHITE FLIGHT A SIGNIFICANT ACHIEVEMENT MOST SCHOOLS THAT ARE MORE THAN HALF MINORITY RAPIDLY BECOME 100 MINORITY HE SAID THE CONTROVERSIAL PLAN WHICH CAUSED LOCAL PROPERTY TAXES TO NEARLY DOUBLE TURNED EVERY HIGH SCHOOL EVERY MIDDLE SCHOOL AND ABOUT HALF THE ELEMENTARY SCHOOLS INTO SPECIALIZED MAGNET SCHOOLS BY THE 199192 ACADEMIC YEAR ONE SCHOOL HAD 800 COMPUTER TERMINALS FOR ITS 1200 STUDENTS AS WELL AS A FULLTIME STAFF THAT INCLUDED A WEIGHT TRAINER A DIVING INSTRUCTOR AND A RUSSIAN FENCING INSTRUCTOR AND HIS BILINGUAL INTERPRETER IT IS UNCLEAR WHETHER STUDENTS ARE IMPROVING ACADEMICALLY IN THESE SCHOOLS THE STUDY SAID THERE HAVE BEEN NO INDEPENDENT EVALUATIONS OF THE PROGRAMS BUT TEST SCORES SEEM TO BE IMPROVING ESPECIALLY IN THE ELEMENTARY GRADES MANY TESTSCORE RESULTS ARE DIFFICULT TO INTERPRET HOWEVER BECAUSE THE NATIONAL NORMS WITH WHICH RESULTS ARE COMPARED HAVEN'T BEEN UPDATED SINCE 1985 THE MOST APPROPRIATE GOAL FOR MAGNETS IS NOT TO DESEGREGATE BUT TO ENHANCE EDUCATIONAL QUALITY FOR DISADVANTAGED MINORITY STUDENTS THE STUDY CONCLUDED AS VEHICLES FOR EDUCATIONAL IMPROVEMENT EVEN THE MOST AMBITIOUS AND COMPREHENSIVE MAGNET REMEDIES MAY ACCOMPLISH LITTLE WITHOUT VIGILANT MONITORING AND ENFORCEMENT 9404260127 940426 WHO'S NEWS IKOS SYSTEMS INC IKOS SYSTEMS INC CUPERTINO CALIF LUTZ HENCKELS 53 YEARS OLD WAS NAMED TO THE BOARD OF THIS MAKER OF SOFTWARE AND HARDWARE SIMULATION PRODUCTS MR HENCKELS PRESIDENT AND CHIEF EXECUTIVE OF LECROY CORP TAKES THE SEAT OF ROBERT GRAHAM WHO RESIGNED 9404260126 940426 INTERNATIONAL SOUTH KOREAN FIRM SIGNS PACT SEOUL SOUTH KOREA POHANG IRON & STEEL CO OR POSCO HAS SIGNED AN AGREEMENT WITH RATARRUKKI OY OF FINLAND TO IMPORT ABOUT 40000 TONS OF STEEL PLATES A COMPANY OFFICIAL SAID POSCO DECIDED TO IMPORT THE STEEL PLATES BECAUSE OF SOARING DEMAND FOR THE PRODUCT FROM LOCAL SHIPBUILDERS THE OFFICIAL SAID DETAILS ON THE IMPORTS INCLUDING PRICES ARE UNDER NEGOTIATION 9404260125 940426 BANKATLANTIC PLANS ACQUISITION FORT LAUDERDALE FLA BANKATLANTIC SAID IT AGREED TO ACQUIRE MEGABANK A MIAMIBASED COMPANY WITH 160 MILLION IN ASSETS FOR APPROXIMATELY 20 MILLION IN CASH THE DEAL EXPECTED TO BE COMPLETED LATE THIS YEAR WOULD EXPAND BANKATLANTIC'S DADE COUNTY PRESENCE TO SEVEN OFFICES FROM TWO BANKATLANTIC WITH 31 BRANCHES IN SOUTH FLORIDA HAS 136 BILLION IN ASSETS THE TRANSACTION IS SUBJECT TO DUE DILIGENCE REGULATORY APPROVAL AND OTHER UNSPECIFIED CONDITIONS 9404260124 940426 POLITICS & POLICY US SEEKS TO ASSUAGE JORDAN BY CHANGING MONITORING OF CARGO ASCOT ENGLAND IN A MOVE TO GIVE JORDAN'S KING HUSSEIN SOME ECONOMIC RELIEF AND KEEP HIM FULLY ENGAGED IN THE MIDEAST PEACE EFFORTS THE US AGREED TO CHANGES IN THE WAY IT MONITORS CARGO AT JORDAN'S MAIN PORT TO ENFORCE THE SANCTIONS IMPOSED ON IRAQ AFTER ITS INVASION OF KUWAIT THE US AS PART OF A UNITED NATIONS EFFORT CURRENTLY BLOCKADES THE JORDANIAN PORT OF AQABA TO STOP VESSELS AND INSPECT THEIR CARGO A US OFFICIAL SAID THAT JORDAN ESTIMATES IT HAS LOST HUNDREDS OF MILLIONS OF DOLLARS IN COMMERCE BECAUSE OF THE DISRUPTION OF TRAFFIC AT ITS PORT KING HUSSEIN RECENTLY THREATENED TO STOP JORDAN'S COOPERATION AT MULTILATERAL PEACE TALKS TO PROTEST THE INTERCEPTION OF AQABABOUND SHIPPING US SECRETARY OF STATE WARREN CHRISTOPHER FOLLOWING A VISIT HERE WITH KING HUSSEIN WHO IS IN LONDON FOR MEDICAL REASONS ANNOUNCED A LESSINTRUSIVE SYSTEM IN WHICH CARGOES WOULD BE INSPECTED AFTER THEY ARE UNLOADED IN AQABA THE INSPECTIONS WOULD BE CONDUCTED BY THE INDEPENDENT ORGANIZATION LLOYD'S REGISTER OF SHIPPING MR CHRISTOPHER SAID THE NEW SYSTEM WOULD BE AS EFFECTIVE PERHAPS MORE EFFECTIVE THAN STOPPING SHIPS AND CONDUCTING SEARCHES AT SEA THE NEW SYSTEM ALSO IS EXPECTED TO SUBSTANTIALLY REDUCE DELAYS CAUSED BY INSPECTIONS ABOARD SHIP A SENIOR US OFFICIAL ESTIMATED THAT ABOUT 460 SHIPS HAVE BEEN TURNED WAY FROM AQABA MOSTLY BECAUSE THEY DIDN'T HAVE PROPER DOCUMENTATION FOR THEIR CARGOES ONLY SIX SHIPS CONTAINED CONTRABAND CARGO SINCE THE SANCTIONS HAVE BEEN IMPOSED THE OFFICIAL ADDED 9404260123 940426 MARKETING & MEDIA NOTED NIXON BOOK PUBLISHER RANDOM HOUSE IS RUSHING OUT THE LAST BOOK WRITTEN BY LATE FORMER PRESIDENT RICHARD NIXON WHICH WILL BEGIN ARRIVING IN BOOKSTORES TOMORROW THE DAY OF HIS FUNERAL TITLED BEYOND PEACE THE BOOK IS EXCERPTED THIS WEEK IN TIME MAGAZINE BUT WASN'T DUE TO BE PUBLISHED UNTIL JUNE MR NIXON HAD ALREADY APPROVED THE TEXT AND JACKET THE PUBLISHER SAID THOUGH HE HAD WANTED TO REVISE SOME THOUGHTS ON RUSSIA AFTER A RECENT VISIT THERE THIS IS MR NIXON'S 10TH BOOK AND FOCUSES ON HIS PRESCRIPTIONS FOR IMPROVING US FOREIGN AND DOMESTIC POLICY RANDOM HOUSE IS A UNIT OF ADVANCE PUBLICATIONS INC 9404260122 940426 DURIRON TO BUY FRENCH CONCERN DAYTON OHIO DURIRON CO SAID IT WOULD ACQUIRE SEREG VANNES SA A FRENCH CONTROL VALVE COMPANY OWNED BY FINMECCANICAELSAG BAILEY OF ITALY TERMS OF THE ACQUISITION WHICH ARE EXPECTED TO BE FINALIZED WITHIN A WEEK WERE NOT DISCLOSED SEREG VANNES HAD 1993 SALES OF ABOUT 19 MILLION DURIRON WHICH HAD 1993 SALES OF 314 MILLION MAKES CORROSIVERESISTANT EQUIPMENT PUMPS VALVES AND OTHER FLUIDHANDLING EQUIPMENT AND PRODUCTS 9404260121 940426 TYSON FOODS PLANS INDIANA PLANT SPRINGDALE ARK TYSON FOODS INC SAID IT PLANS TO BUILD A 25 MILLION TORTILLA AND CORNCHIP PLANT IN PORTLAND IND THE SPRINGDALE ARK POULTRY CONCERN SAID THE PLANT WILL OPEN NEXT YEAR AND WILL INITIALLY EMPLOY ABOUT 425 PEOPLE TYSON LAST YEAR GENERATED ABOUT 125 MILLION IN SALES FROM ITS MEXICAN ORIGINAL DIVISION ONE OF THE NATION'S LARGEST MANUFACTURERS OF FLOUR AND CORNTORTILLA PRODUCTS TYSON SAID THE INDIANA PLANT WILL MAKE WHEAT FLOUR TORTILLAS CORN CHIPS TACO SHELLS AND TOSTADOS 9404260120 940426 WHO'S NEWS BOEING CO BOEING CO SEATTLE FOUR EXECUTIVES OF THE GIANT AIRCRAFT MAKER WERE NAMED SENIOR VICE PRESIDENTS A SPOKESMAN SAID THE DUTIES OF FORMER VICE PRESIDENTS LAWRENCE W CLARKSON 55 YEARS OLD AND LARRY G MCKEAN 58 WON'T CHANGE SIGNIFICANTLY WITH THEIR APPOINTMENTS RESPECTIVELY TO SENIOR VICE PRESIDENT OF PLANNING AND INTERNATIONAL DEVELOPMENT AND SENIOR VICE PRESIDENT OF HUMAN RESOURCES THE CORPORATE SENIOR VICE PRESIDENT TITLE ALSO WAS GIVEN TO THE TOP EXECUTIVES OF BOEING'S LARGEST OPERATING GROUPS WHO RETAIN THEIR GROUP TITLES C GERALD KING 59 PRESIDENT OF THE BOEING DEFENSE & SPACE GROUP AND RONALD B WOODARD 51 PRESIDENT OF THE BOEING COMMERCIAL AIRPLANE GROUP 9404260119 940426 MFS TO BUILD NETWORK IN MIAMI OMAHA NEB MFS COMMUNICATIONS CO SAID IT WOULD SPEND MORE THAN 35 MILLION TO BUILD A FIBEROPTIC NETWORK IN MIAMI TO PROVIDE TELECOMMUNICATIONS SERVICES TO BUSINESS AND GOVERNMENT CUSTOMERS THE 40MILE NETWORK WOULD CONNECT 50 BUILDINGS IN THE DOWNTOWN AIRPORT AND CORAL GABLES AREAS BY YEAR END MFS NOW SERVES 18 METROPOLITAN AREAS AND HAS FIVE OTHER NETWORKS UNDER DEVELOPMENT IN DIRECT COMPETITION WITH REGIONAL BELL OPERATING COMPANIES 9404260118 940426 CINEMAS ADD PEPSI PRODUCTS SOMERS NY PEPSICO INC SAID REGAL CINEMAS INC AGREED TO SERVE PEPSI PRODUCTS AT ITS 454 MOVIETHEATER SCREENS REGAL BASED IN KNOXVILLE TENN EXPECTS RECENTLY ANNOUNCED ACQUISITIONS AND EXPANSION PLANS TO BRING ITS TOTAL SCREENS UP TO MORE THAN 700 BY YEAR END 9404260117 940426 MONDAY'S MARKETS STOCKS LEAP AMID GAINS IN EARNINGS BONDS' STRENGTH ALSO IS A MAJOR INFLUENCE DOLLAR ENDS LOWER BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES ROCKETED AS ROBUST EARNINGS REPORTS AND A BUOYANT BOND MARKET PROVED TO BE A POWERFUL TONIC THE DOLLAR WAS LOWER THE DOW JONES INDUSTRIAL AVERAGE SHOT UP 5710 POINTS TO 370578 SURPASSING THE 3700 MARK FOR THE FIRST TIME IN NEARLY A MONTH IT WAS THE BIGGEST ONEDAY GAIN FOR THE INDUSTRIALS SINCE APRIL 5 STANDARD & POOR'S 500STOCK INDEX GAINED 508 TO 45271 AND THE NASDAQ COMPOSITE INDEX SURGED 824 TO 73080 STOCKS STARTED THE DAY ON A MIXED NOTE BUT QUICKLY TURNED HIGHER AS INVESTORS WERE BOMBARDED WITH SURPRISINGLY GOOD PROFIT REPORTS FROM DUPONT AND BOEING DUPONT A CHEMICAL CONCERN STUNNED WALL STREET BY REPORTING FIRSTQUARTER PROFIT OF 94 CENTS A SHARE 20 CENTS ABOVE ANALYSTS' CONSENSUS EXPECTATIONS SIMILARLY BOEING POSTED FIRSTQUARTER PROFIT OF 86 CENTS A SHARE SURPASSING EXPECTATIONS THAT IT WOULD EARN 72 CENTS THESE EARNINGS SURPRISES ARE TREMENDOUS SAID GAIL DUDACK STOCK STRATEGIST AT SG WARBURG WE ARE NOT TALKING ABOUT EARNINGS COMING IN A PENNY ABOVE EXPECTATIONS WE'RE TALKING ABOUT EARNINGS COMING IN WELL ABOVE EXPECTATIONS MS DUDACK SAID THAT WHILE POSITIVE EARNINGS SURPRISES HAVE OUTNUMBERED NEGATIVE SURPRISES FOR THE PAST SEVEN QUARTERS WHAT IS REMARKABLE THIS QUARTER IS THE DEGREE TO WHICH COMPANIES ARE SURPASSING ANALYSTS' PROFIT ESTIMATES BUT SHE SAID SHE SUSPECTS THE TREND WON'T LAST MUCH LONGER THE ODDS ARE THAT THE DEGREE OF THESE SURPRISES IS NOT GOING TO BE CONTINUED FOR THE REST OF THE YEAR BUT COMMENTS LIKE THAT WEREN'T ENOUGH TO STOP INVESTORS FROM GOBBLING UP COMPANIES SUCH AS DUPONT AND BOEING BOEING'S STOCK ROSE 1 TO 44 3/4 AND DUPONT JUMPED 3 1/2 TO 58 1/8 TOGETHER CONTRIBUTING NEARLY 11 POINTS TO THE INDUSTRIAL AVERAGE CYCLICAL STOCKS OR SHARES THAT ARE SENSITIVE TO THE ECONOMIC CYCLE ALSO FARED WELL A MORGAN STANLEY INDEX OF CYCLICAL STOCKS GAINED 513 POINTS TO 29265 FAR OUTPERFORMING THE FIRM'S BAROMETER OF CONSUMER STOCKS A LOT OF THE CYCLICALS THAT WERE VANQUISHED LAST WEEK ARE NOW BECOMING THE MARKET LEADERS AGAIN SAID JEFFREY APPLEGATE CHIEF INVESTMENT STRATEGIST AT CS FIRST BOSTON THE STOCK RALLY GAINED FUEL IN THE AFTERNOON AS THE BOND MARKET REVERSED COURSE AND STARTED RISING THE TREASURY'S 30YEAR BOND LEAPED MORE THAN 3/4 POINT OR MORE THAN 750 FOR EACH 1000 FACE AMOUNT AND THE YIELD DROPPED TO 715 FALLING BELOW THE 720 MARK FOR THE FIRST TIME SINCE MARCH 31 I THINK AFTER THE LATEST RATE HIKE BY THE FEDERAL RESERVE THERE IS A GROWING CONVICTION THAT THERE MAY BE ONE MORE TIGHTENING AND THAT MAY BE IT FOR THE YEAR SAID EDWARD YARDENI CHIEF ECONOMIST AT CJ LAWRENCE MR APPLEGATE OF CS FIRST BOSTON SAID STOCK INVESTORS ARE TRYING TO FIGURE OUT THE EXTENT TO WHICH CORPORATE PROFITS WILL BE DEPRESSED AS A RESULT OF THE FED'S RECENT ACTIONS IN MAJOR MARKET ACTION STOCK PRICES RALLIED VOLUME TOTALED 2622 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1552 ISSUES ROSE AND 667 FELL THE DOLLAR WAS LOWER IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16795 MARKS AND 10310 YEN COMPARED WITH 16900 MARKS AND 10325 YEN FRIDAY 9404260116 940426 LEGAL & GENERAL ADR PROGRAM NEW YORK LEGAL & GENERAL GROUP PLC A LEADING UK INSURANCE AND FINANCIAL SERVICES GROUP SAID IT ESTABLISHED A PROGRAM TO TRADE AMERICAN DEPOSITARY RECEIPTS IN THE US EACH ADR REPRESENTS TWO ORDINARY SHARES OF L&G COMMON STOCK WHICH TRADES ON THE LONDON STOCK EXCHANGE THE ADRS BEGAN TRADING IN THE OVERTHECOUNTER MARKET WITH A MORGAN STANLEY GROUP INC UNIT ACTING AS DEPOSITARY 9404260115 940426 GE SKODA PLAN POWER PROJECTS FAIRFIELD CONN GENERAL ELECTRIC CO SAID IT JOINED WITH SKODA A LEADING CZECH INDUSTRIAL COMPANY TO WORK ON POWERGENERATION PROJECTS THE 10YEAR AGREEMENT CALLS FOR SKODA TO SUPPLY TURBINEGENERATOR COMPONENTS TO GE'S GE INDUSTRIAL & POWER SYSTEMS BUSINESS GE SAID IT EXPECTS TO PLACE ABOUT 5 MILLION TO 10 MILLION IN ORDERS WITH SKODA IN THE NEXT TWO YEARS WITH MORE COMMITMENTS EXPECTED IN ADDITION GE WILL SUPPLY GAS TURBINES AND ENGINEERING FOR SKODADESIGNED AND SKODACONSTRUCTED POWER PLANTS IN EASTERN EUROPE THE COMMONWEALTH OF INDEPENDENT STATES THE MIDDLE EAST AND VIETNAM 9404260114 940426 POMEROY GETS 9 MILLION PROJECT ERLANGER KY POMEROY COMPUTER RESOURCES INC SAID IT RECEIVED A 9 MILLION DISTRIBUTIONSERVICES PROJECT FROM WESTERNSOUTHERN LIFE INSURANCE CO OF CINCINNATI THE PROJECT SLATED TO START IN THE THIRD QUARTER INVOLVES ROLLING OUT LAPTOP COMPUTERS TO THE INSURANCE COMPANY'S 3000 FIELD REPRESENTATIVES POMEROY HAD 1122 MILLION IN REVENUE IN THE FISCAL YEAR ENDED JAN 5 9404260113 940426 ECONOMY MARKETS AND US GOVERNMENT TO CLOSE TOMORROW IN DAY OF MOURNING FOR NIXON A WALL STREET JOURNAL NEWS ROUNDUP MOST OF THE NATION WILL GO TO WORK TOMORROW ALTHOUGH FINANCIAL MARKETS AND THE FEDERAL GOVERNMENT WILL SHUT DOWN TO OBSERVE A NATIONAL DAY OF MOURNING FOR FORMER PRESIDENT RICHARD M NIXON THE NEW YORK STOCK EXCHANGE AND THE AMERICAN STOCK EXCHANGE AS WELL AS REGIONAL EXCHANGES AND THE NASDAQ MARKET WILL BE CLOSED THE BIG BOARD HAS CLOSED FOLLOWING THE DEATHS OF OTHER FORMER PRESIDENTS THIS CENTURY THE LAST SUCH CLOSING WAS IN 1973 MARKING THE DEATH OF LYNDON B JOHNSON THE PUBLIC SECURITIES ASSOCIATION RECOMMENDED THAT THE GOVERNMENTBOND MARKET BE CLOSED UNLIKE MANY OTHER SECURITIES BONDS AREN'T TRADED AT AN EXCHANGE BUT OVERTHECOUNTER AS A RESULT THERE'S NO OFFICIAL CLOSING OF THE BOND MARKET BUT TRADING IF IT OCCURS IS EXPECTED TO BE VERY LIMITED THE POST OFFICE WILL CLOSE MOST OF ITS FACILITIES ALTHOUGH CRITICAL SERVICES WILL STILL BE AVAILABLE LEADING COMMODITY FUTURES EXCHANGES AND THE FEDERAL RESERVE BOARD ALSO WILL SHUT DOWN HOWEVER THE FEDERAL RESERVE SYSTEM'S 12 REGIONAL BANKS WILL CONTINUE TO OPERATE MOST BANKS INSURANCE COMPANIES AND RETAILERS WILL REMAIN OPEN FOR BUSINESS CORPORATE AMERICA HAS NO PLANS TO TAKE THE DAY OFF OUR CUSTOMERS EXPECT SERVICE EVEN ON DAYS OF MOURNING SAID A SPOKESMAN FOR STATE FARM AUTOMOBILE INSURANCE CO OF BLOOMINGTON IND ECHOING THE VIEWS OF MANY COMPANIES THIS NEWSPAPER WILL BE PUBLISHED AND THE DOW JONES NEWS SERVICE WILL OPERATE THE DOZENS OF FIRMS THAT HAD SCHEDULED ANNUAL MEETINGS FOR TOMORROW PLANNED TO GO AHEAD IT'S UNFORTUNATE THAT THE DAY OF MOURNING IS AT THE SAME TIME BUT THE LOGISTICS OF HOLDING AN ANNUAL MEETING ARE SO EXTENSIVE THAT I DON'T SEE HOW WE CAN POSTPONE IT SAID A SPOKESMAN FOR WESTINGHOUSE ELECTRIC CORP PITTSBURGH THE US TREASURY POSTPONED A 11 BILLION FIVEYEAR NOTE AUCTION ORIGINALLY SCHEDULED FOR TOMORROW TO THURSDAY THE CLOSING TIME FOR COMPETITIVE TENDERS WILL BE 1230 PM EDT INSTEAD OF THE ORIGINALLY SCHEDULED 1 PM THE CLOSING TIME FOR NONCOMPETITIVE TENDERS REMAINS AT NOON EDT THE GOVERNMENT WILL STILL CHURN OUT ECONOMIC STATISTICS THE COMMERCE DEPARTMENT SAID ITS REPORT ON MARCH ORDERS FOR DURABLE GOODS WILL COME OUT ON SCHEDULE TOMORROW NOTABLY THERE'S AN IMPACT ON THE ECONOMY THOUGH A VERY SLIGHT ONE FROM CALLING FOR A NATIONAL HOLIDAY FOR THE 29 MILLION NONMILITARY FEDERAL GOVERNMENT WORKERS BECAUSE OF THE WAY THE GROSS DOMESTIC PRODUCT IS CALCULATED IT WILL MEAN THERE WILL BE ABOUT 15 BILLION LESS OF PRODUCTION ATTRIBUTED TO GOVERNMENT WORKERS THIS YEAR THAT IS EQUAL TO ABOUT ONE TENTH OF ONE PERCENTAGE POINT OF THE NATION'S MORE THAN 5 TRILLION GROSS DOMESTIC PRODUCT A BARE STATISTICAL BLIP THE ESTIMATE FROM THE COMMERCE DEPARTMENT IS BASED SOLELY ON THE REDUCTION IN THE NUMBER OF HOURS WORKED BY THE GOVERNMENT SECTOR DIRECT COSTS TO THE GOVERNMENT HOWEVER WILL RISE BY 23 MILLION THAT'S TO PAY FOR THE ESSENTIAL EMPLOYEES SUCH AS SECURITY PERSONNEL AND HEALTHCARE WORKERS WHO WILL WORK WHILE THEIR COWORKERS HAVE THE DAY OFF SAYS THE OFFICE OF MANAGEMENT AND BUDGET ADDS ROSS DEVOL AN ECONOMIST OF THE WEFA GROUP IN BALA CYNWYD PA IF THE POSTPONEMENT OF SOME BUSINESS TRANSACTIONS CARRIES OVER INTO NEXT WEEK IT MEANS THERE WILL BE SOME SLIGHT SHIFT OF ECONOMIC ACTIVITY FROM APRIL TO MAY WHILE MOST BUSINESSES WILL REMAIN OPEN THEY WILL NOT RECEIVE MAIL DELIVERY THAT COULD POSTPONE SOME BUSINESS TRANSACTIONS AND DELAY BY A DAY THE CREDITING AND DEBITING OF CHECKS FROM PERSONAL AND BUSINESSCHECKING ACCOUNTS THE FEDERAL RESERVE BOARD ESTIMATES THERE ARE ABOUT 130 MILLION CHECKS IN MAIL TRANSIT EVERY DAY WITH A VALUE OF ABOUT 85 BILLION CHECK PROCESSING FOR OTHER CHECKS ALREADY IN THE BANKING SYSTEM WILL CONTINUE BECAUSE ALL THE FEDERAL RESERVE BANKS AND THE COMMERCIAL BANKING SYSTEM ARE EXPECTED TO REMAIN OPEN THE BIG BOARD'S DECISION TO CLOSE THE EXCHANGE APPARENTLY IRKED OFFICIALS AT THE NASDAQ MARKET AND THE PACIFIC EXCHANGE WHO SAID THE BIG BOARD'S UNILATERAL ACTION LEFT THEM LITTLE CHOICE BUT TO SHUT THEIR DOORS THE TIDE HAS BEEN TO BE OPEN AND STAY OPEN WHENEVER POSSIBLE SAID EDWARD FLEISCHMAN A FORMER SECURITIES AND EXCHANGE COMMISSIONER AND NOW A NEW YORK LAWYER SPECIALIZING IN MARKETSRELATED LAW BUT THE BIG BOARD SAID THE CLOSING WAS A CLEARCUT DECISION IN LIGHT OF PRESIDENT CLINTON'S DECLARATION AND THE AMPLE PRECEDENT WE HAVE AT THE EXCHANGE FOR SUCH CLOSINGS MEANWHILE CHINA FUND INC SAID IT HAS DECIDED TO EXTEND THE SUBSCRIPTION PERIOD FOR THE FUND'S RIGHTS OFFERING TO COMMON SHAREHOLDERS TO 5 PM EDT FRIDAY THE CONFIRMATION DATE HAS BEEN CHANGED TO MAY 13 MUDGE ROSE GUTHRIE ALEXANDER & FERDON A NEW YORK LAW FIRM THAT PRESIDENT NIXON JOINED IN THE EARLY 1960S SAID IT WILL CLOSE ITS WASHINGTON OFFICE TOMORROW IN TRIBUTE TO THE FORMER PRESIDENT 9404260112 940426 INTERNATIONAL HYUNDAI CEMENT'S EXPANSION SEOUL SOUTH KOREA SOUTH KOREA'S HYUNDAI CEMENT CO SAID IT COMPLETED THE EXPANSION IN ONE OF TWO PLANTS TO INCREASE ITS ANNUAL CEMENT PRODUCTION CAPACITY TO SEVEN MILLION TONS A HYUNDAI OFFICIAL SAID THE COMPANY SPENT 100 BILLION WON 1236 MILLION TO ADD PRODUCTION LINES WITH TWO MILLION TONS OF CAPACITY AT THE PLANT LOCATED IN YOUNGWEOL NORTHEAST OF SEOUL HYUNDAI CEMENT HAS A THREE MILLION TON PLANT IN TANGYANG SOUTH OF SEOUL HYUNDAI CEMENT BROKE AWAY FROM SOUTH KOREA'S HYUNDAI CONGLOMERATE IN 1990 9404260111 940426 LETTERS TO THE EDITOR BELLOW'S CHARACTERS AREN'T DOPPELGANGERS BRUCE BAWER'S SHALLOW REVIEW OF SAUL BELLOW'S IT ALL ADDS UP CANNOT BE ALLOWED TO GO UNCHALLENGED CHICAGO'S JEREMIAH RAILS AT OUR BABYLON LEISURE & ARTS APRIL 1 IN MR SAMMLER'S PLANET AFFIRMS MR BAWER THERE IS A BLACK PICKPOCKET WHOSE CONDUCT IS LESS THAN EXEMPLARY THEREFORE MR BELLOW IS A RACIST IT SHOULD FOLLOW ACCORDING TO THIS ILLOGICAL STYLE OF RATIOCINATION THAT EISEN A JEWISH CHARACTER IN THE SAME NOVEL WHO IS INFINITELY VILER THAN THE BLACK MAN PROVES MR BELLOW TO BE AN ANTISEMITE EVEN THE PREMISE OF MR BAWER'S BIZARRE SYLLOGISM IS INCORRECT SAMMLER HAS MIXED FEELINGS ABOUT THE BLACK PICKPOCKET WHOM HE TRIES TO PROTECT AND WHOM HE DESCRIBES AS A POOR MAN TO BE PITIED NOT DESPISED IN ADDITION SAMMLER IS NOT SAUL BELLOW BUT A CHARACTER IN A BELLOW NOVEL MR BELLOW HAS STATED SPECIFICALLY THAT SAMMLER'S THOUGHTS ARE THOSE OF A MAN RISEN FROM THE DEAD A MAN OUTSIDE THE NORMAL HUMAN STREAM THESE ACCUSATIONS OF RACISM IN MR BELLOW'S WORKS ARE NOT UNFORTUNATELY NEW THEY ARE AN UNDERHANDED WAY OF GETTING AT AN AUTHOR WHO MOCKS THE LITERALLY CORRECT AND THE POLITICALLY CORRECT FADS OF THE MOMENT IN LITERARY CRITICISM TODAY THE BIG TRENDS ARE DECONSTRUCTION NIHILISM APPLIED TO LITERATURE AND ANALYSES BASED ON THE CHILDLIKE NOTION THAT ONLY GENDER CLASS RACE AND SEXUAL IDENTITY ARE WORTHY OF OUR ATTENTION MR BELLOW IS THE PRINCIPAL NAYSAYER TO THESE WRETCHED IDEAS IN THE POLITICS OF ACADEME WHERE TRADITIONAL LIBERALS ARE RIGHT OF CENTER AND REPUBLICANS ARE NONPERSONS MR BELLOW IS MIGHTILY RESENTED FOR SAYING THAT THE BIG PROBLEMS IN LIFE ESCHATOLOGY ANGST ALIENATION THE PERCEIVED ABSURDITY OF EXISTENCE CANNOT BE SOLVED BY GOVERNMENT PROGRAMS HE DARES SUGGEST THAT THERE IS HOPE FOR THE INDIVIDUAL HUMAN SOUL HOPE THAT COMES FROM ANOTHER LIFE FROM AN INSISTENT SENSE OF WHAT WE ARE NOBEL LECTURE MR BAWER ASSERTS THAT MOST BELLOW CHARACTERS ARE QUITE FRANKLY AUTHORIAL ALTER EGOS THAT IS NOT TRUE THEY ARE DELIGHTFULLY DIVERSE AND FASCINATING I WOULD SUGGEST THAT PEOPLE WHO LIKE TO READ IGNORE THIS REVIEW AND GO TO THE TEXTS HENDERSON THE RAIN KING FOR EXAMPLE IS A WONDERFUL RIDE THROUGH COMPLETELY UNCHARTED TERRITORY BON VOYAGE 9404260110 940426 INTERNATIONAL SANTANDER WINS BIDDING CONTEST TO BUY BANESTO MADRID BANCO SANTANDER SA WON THE BIDDING CONTEST FOR BANCO ESPANOL DE CREDITO SANTANDER AGREED TO PAY 281 BILLION PESETAS 204 BILLION FOR A 602 STAKE IN BANESTO BEATING OUT RIVALS BANCO BILBAO VIZCAYA SA AND STATECONTROLLED ARGENTARIACORP BANCARIA DE ESPANA THE MERGER WILL CREATE SPAIN'S BIGGEST BANKING GROUP AND ONE OF THE TOP 50 WORLDWIDE THE ACQUISITION ALSO MARKS A MAJOR STEP FORWARD FOR SANTANDER WHICH IN RECENT YEARS HAS EMERGED BOTH DOMESTICALLY AND INTERNATIONALLY AS SPAIN'S MOST AGGRESSIVE COMMERCIAL BANK SEPARATELY BANESTO'S CARETAKER MANAGEMENT FILED A CIVIL LIABILITY SUIT OVER THE WEEKEND AGAINST MARIO CONDE THE BANK'S FORMER CHAIRMAN AND 17 MEMBERS OF THE FORMER BOARD THEY INCLUDE ROBERTO MENDOZA A VICE CHAIRMAN AT JP MORGAN & CO THE US INVESTMENT BANK THAT FORMERLY ACTED AS ADVISER TO BANESTO ACCORDING TO INDIVIDUALS FAMILIAR WITH THE SUIT IT ALLEGES THAT MISMANAGEMENT ON THE PART OF THE FORMER BANESTO BOARD MEMBERS WAS RESPONSIBLE FOR BRINGING THE BANK TO THE EDGE OF BANKRUPTCY IN CONSEQUENCE BANESTO IS SUING THEM FOR DAMAGES ASKING THEM TO COVER THE BANK'S 605 BILLION PESETA 44 BILLION SHORTFALL WITH THEIR PERSONAL ASSETS WITH COMBINED ASSETS OF ABOUT 18 TRILLION PESETAS 26600 EMPLOYEES AND A NETWORK OF 3660 BRANCHES THE NEW GROUP WILL BE 40 LARGER THAN ITS NEAREST DOMESTIC RIVAL BANCO CENTRAL HISPANO SA UNTIL NOW NO 1 IN SPAIN ABSORBING BANESTO WHICH WAS SEIZED BY BANKING REGULATORS IN DECEMBER WON'T BE EASY BANESTO IS AT BEST BREAKING EVEN AND ITS MANAGEMENT IS DISORGANIZED SAYS CHARLES PRESCOTT AN ANALYST AT IBCA LTD A RATING AGENCY BASED IN LONDON RUNNING IT IS GOING TO REQUIRE A LOT OF INDEPTH MANAGEMENT BUT SANTANDER CHAIRMAN EMILIO BOTIN WAS UPBEAT ACCORDING TO OUR CALCULATIONS THIS ACQUISITION WILL PROVIDE A SIGNIFICANT CONTRIBUTION TO SANTANDER'S PROFITS IN THREE YEARS TIME HE SAID IT WILL BROADEN OUR BUSINESS BASE IN SPAIN AND AT THE SAME TIME HELP US TO STRENGTHEN OUR ACTIVITIES INTERNATIONALLY IN AN UNEXPECTED MOVE SANTANDER SAID BANESTO WILL CONTINUE TO BE HEADED BY ALFREDO SAENZ THE TEMPORARY CHAIRMAN CHOSEN BY THE BANK OF SPAIN ONCE ONE OF THE MOST PRESTIGIOUS NAMES IN SPANISH BANKING BANESTO HAS BEEN IN DIFFICULTY FOR SEVERAL YEARS BECAUSE OF POOR INVESTMENTS AND LOSSES ON BAD LOANS THE PRICE PAID FOR THE CONTROLLING STAKE IN BANESTO WAS WELL ABOVE EXPECTATIONS UNDERLINING SANTANDER'S DETERMINATION NOT TO ALLOW THE BANK TO BE GOBBLED UP BY EITHER OF ITS RIVALS BANESTO'S LARGEST SHAREHOLDER WITH 79 IS CORSAIR PARTNERSHIP A 1 BILLION INVESTMENT FUND LED BY JP MORGAN 9404260109 940426 MARKETING & MEDIA TIME MAGAZINE TO EXPAND CUSTOMIZED NEWS CONCEPT NEW YORK TIME MAGAZINE SAYS IT HAS BEGUN USING NEW TECHNOLOGY TO CUSTOMIZE NEWS STORIES FOR SUBSCRIBERS A PRACTICE IT PLANS TO EXPAND IN THE FUTURE STARTING WITH THIS WEEK'S ISSUE SUBSCRIBERS WILL PERIODICALLY RECEIVE A CUSTOMIZED FEATURE CALLED TIME ON CAPITOL HILL SHOWING HOW A PARTICULAR SUBSCRIBER'S REPRESENTATIVES VOTED IN CONGRESS ON AN ISSUE THE ISSUE REVIEWS THE VOTE ABOUT WHETHER NAVY ADMIRAL FRANK KELSO SHOULD BE ALLOWED TO RETIRE WITH FULL RANK AND PENSION DESPITE THE TAILHOOK SCANDAL THE VOTE WAS YES BUT IT WAS CLOSE WE HAVE AMBITIOUS PLANS TO USE THIS TECHNOLOGY TO MAKE TIME MORE RELEVANT THAN EVER TO OUR READERS SAID JIM GAINES THE MANAGING EDITOR TIME SAID IT GATHERS ELECTRONIC VOTING FILES FROM CONGRESSIONAL QUARTERLY SORTS TIME'S FOUR MILLION SUBSCRIBERS BY ZIP CODE AND THEN USES COMPUTERIZED PRINTERS TO PRINT THE SUBSCRIBER'S NAME ON THE PAGE WITH THE RELEVANT VOTES TIME USED IT THREE YEARS AGO TO CUSTOMIZE ITS COVER ALERTING SUBSCRIBERS TO A STORY ON JUNK MAIL EVENTUALLY TIME PUBLISHED BY TIME WARNER INC SAID IT WILL ALSO ADD POSTCARDS PREADDRESSED TO A SUBSCRIBERS' REPRESENTATIVES SO READERS CAN IMMEDIATELY REACT TO HOW THEIR LAWMAKERS VOTED 9404260108 940426 POLITICS & POLICY US EUROPE AND RUSSIA CREATE GROUP TO COORDINATE EFFORTS FOR BOSNIAN PEACE BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL LONDON AFTER OFTEN HEADING IN DIFFERENT DIRECTIONS THE US EUROPEANS AND RUSSIA EMBARKED ON A NEW UNIFIED COURSE TO NEGOTIATE PEACE IN WARTORN BOSNIA STANDING IN FRONT OF 10 DOWNING ST AFTER A SERIES OF MEETINGS HERE YESTERDAY BRITISH FOREIGN SECRETARY DOUGLAS HURD AND SECRETARY OF STATE WARREN CHRISTOPHER ANNOUNCED THAT A CONTACT GROUP MADE UP OF US EUROPEAN UNITED NATIONS AND RUSSIAN DIPLOMATS WOULD BEGIN WORK HERE TODAY MR HURD VOWED THAT THE GROUP WOULD WORK IN A MUCH MORE COORDINATED WAY THAN ITS MEMBERS HAD IN THE PAST BUT THE OPTIMISM AND SUNNY SPRING WEATHER BELIED THE DIFFICULTIES THE ALLIES FACE IN TRYING TO END THE BALKAN CARNAGE THE NEW INITIATIVE ASSUMES THAT THE BOSNIAN SERBS WHO HAVE DEFIED THE WEST IN THE PAST NOW WILL BE PRODDED BY THE THREAT OF WESTERN MILITARY FORCE TO ENTER NEGOTIATIONS THAT INVOLVE GIVING UP SUBSTANTIAL GAINS ON THE GROUND THE APPROACH ALSO COUNTS ON CONTINUED ALLIED UNITY EVEN THOUGH DOMESTIC PRESSURES OFTEN PLACE STRAINS ON THE US EUROPE AND RUSSIA IF THE GROUP COALESCES BEHIND A PLAN FOR BRINGING AN END TO THE WAR THE US WILL TRY TO CONVINCE THE MUSLIMS TO GO ALONG WHILE MOSCOW WORKS TO BRING THE SERBS ON BOARD WE HAVE TO HAVE VARIOUS VECTORS OF PERSUASION AND INFLUENCE INVOLVED WITH THE PARTIES MR CHRISTOPHER SAID WE'RE WORKING ESSENTIALLY ON THE SAME IDEAS WHICH HAVE NEVER REALLY COME INTO CONCRETE FORM A SENIOR US DIPLOMAT CONCEDED STILL MESSRS CHRISTOPHER AND HURD ASSERTED THAT AFTER THE RECENT BLOODSHED IN GORAZDE AND SHOW OF RESOLVE BY NATO THE TIME WAS RIPE FOR THE COORDINATED DIPLOMATIC INITIATIVE THE ALLIES' HOPES FOR SOME SETTLEMENT WILL BE TESTED SOON IF BOSNIAN SERBS DON'T WITHDRAW THEIR HEAVY WEAPONS BEYOND A 12MILE RADIUS OF GORAZDE BY TONIGHT THE NORTH ATLANTIC TREATY ORGANIZATION'S SOUTHERN COMMAND WILL BE AUTHORIZED TO CONDUCT AIR STRIKES AGAINST THEM LAST WEEK THE SERBS COMPLIED WITH AN EARLIER NATO ULTIMATUM BY WITHDRAWING THEIR TROOPS ABOUT TWO MILES FROM THE TOWN'S CENTER LATER TODAY MR CHRISTOPHER FLIES TO GENEVA TO MEET WITH RUSSIAN FOREIGN MINISTER ANDREI KOZYREV FOR DISCUSSIONS ON IMPLEMENTING THE CONTACT GROUP PLAN RUSSIAN HARDLINERS STRONGLY OPPOSE THREATENING THE SERBS THE NEW APPROACH EFFECTIVELY HEADS OFF EUROPEAN AND RUSSIAN CALLS FOR AN INTERNATIONAL GREAT POWERS CONFERENCE THAT WOULD IMPOSE A SETTLEMENT OF THE CONFLICT THE US PREFERS TO START WITH LOWERLEVEL DIPLOMACY AND BUILD UP TOWARD A SOLUTION THE TALKS COULD BE DELICATE RUSSIAN PRESIDENT BORIS YELTSIN WHO PERSONALLY PROPOSED THE PLAN FOR A GREATPOWERS SUMMIT HAS STAKED SOME OF HIS SHRINKING CREDIBILITY ON ITS SUCCESS AND RUSSIA'S SENIOR LEADERS ARE SPLIT ON THE QUESTION OF FURTHER AIR STRIKES AGAINST THE SERBS DEFENSE MINISTER PAVEL GRACHEV HAS TAKEN THE HARDEST LINE TELLING JOURNALISTS YESTERDAY THAT WE SHOULD NOT ONESIDEDLY BLAME THE BOSNIAN SERBS FOR THE SITUATION THAT HAS DEVELOPED AROUND GORAZDE FOR HIS PART MR YELTSIN SAID IN AN INTERVIEW PUBLISHED IN GERMANY'S DER SPIEGEL YESTERDAY THAT AIR STRIKES CAN ONLY WORSEN THE SITUATION AND MAKE THE WAR ENDLESS YESTERDAY MR CHRISTOPHER SAID THAT THE CONTACTGROUP APPROACH WAS PERHAPS A STEP DOWN THE ROAD TOWARD AN INTERNATIONAL CONFERENCE OF THE SORT RUSSIA WOULD PREFER BUT A US OFFICIAL UNDERSCORED PRIVATELY THAT IF THE US HAS ITS WAY SUCH A CONFERENCE WOULD BE A LONG WAY DOWN THE ROAD MEANWHILE THE DIPLOMACY STARTS OFF ON A FAST TRACK A SENIOR AMERICAN OFFICIAL SAID THAT SHORTLY AFTER TODAY'S CONTACTGROUP MEETING CHARLES REDMAN THE US SPECIAL ENVOY WILL RESUME HIS TALKS WITH BOSNIAN MUSLIMS TO TRY TO CONVINCE THEM TO ACCEPT THE NOTION OF A TEMPORARY CESSATION OF HOSTILITIES TIED TO NEGOTIATIONS WITH THE BOSNIAN SERBS THE BOSNIAN MUSLIMS WERE EDGING TOWARD SUCH ACCEPTANCE WHEN THE SERBS BEGAN THEIR ONSLAUGHT OF GORAZDE SEVERAL WEEKS AGO MR REDMAN WILL HAVE A DIFFICULT MISSION HE MUST GET THE MUSLIMS WHO HAVE AGREED TO A FEDERATION WITH BOSNIAN CROATS TO ACCEPT 51 OF BOSNIA THE RUSSIANS WOULD HAVE TO WORK ON THEIR HISTORIC ALLIES THE SERBS WHO NOW CONTROL ABOUT 72 OF THE TERRITORY TO MAKE A SUBSTANTIAL WITHDRAWAL THE BOSNIAN MUSLIMS ALSO WANT THE STATE THAT EMERGES FROM THESE COMPROMISES TO BE A LOOSE FEDERATION TO PREVENT THE FUTURE FORMATION OF A GREATER SERBIA ALL THE PARTICIPANTS AGREE THEY MAY BE HEADED INTO A FINAL INTENSIVE EFFORT TO RESOLVE THE TWOYEAROLD CONFLICT WHEN ASKED WHETHER HE WOULD SUPPORT A LIFTING OF THE ARMS EMBARGO IMPOSED ON MUSLIMS MR HURD WHOSE GOVERNMENT OPPOSES SUCH A MOVE SAID IT'S PERFECTLY LOGICAL IF THE INTERNATIONAL EFFORT TO STOP THE WAR HAS FAILED ADI IGNATIUS IN MOSCOW CONTRIBUTED TO THIS ARTICLE 9404260107 940426 FIRST COMMONWEALTH FINANCIAL INDIANA PA FIRST COMMONWEALTH FINANCIAL CORP CLEARING A PATH FOR FUTURE GROWTH SAID ITS SHAREHOLDERS AUTHORIZED AN ADDITIONAL 75 MILLION COMMON SHARES THE BANKHOLDING COMPANY SAID IT NEEDS THE ADDITIONAL SHARES BECAUSE AFTER IT COMPLETES TWO PENDING ACQUISITIONS IT WILL HAVE OUTSTANDING 22 MILLION OF ITS AUTHORIZED 25 MILLION COMMON SHARES FIRST COMMONWEALTH ALSO SAID SHAREHOLDERS AUTHORIZED CHANGING THE COMMON STOCK'S PAR VALUE TO 1 A SHARE FROM 5 A SPOKESMAN SAID THE CHANGE WILL MAKE FUTURE STOCK DIVIDENDS MORE AFFORDABLE FOR THE COMPANY 9404260106 940426 MARKETING & MEDIA MARKETSCAN PEPSI COKE SEEK TERRITORY HELD BY SPORTSDRINK LEADER GATORADE BY YUMIKO ONO SPORTSDRINK MARKETERS ARE GETTING IN SHAPE FOR THEIR TOUGHEST COMPETITION EVER THIS SUMMER IN THE PAST FEW YEARS A NUMBER OF SMALL COMPANIES HAVE WRESTLED THEIR WAY INTO THE FASTGROWING MARKET FOR SPORTS DRINKS A CATEGORY THAT HAS BEEN DOMINATED FOR DECADES BY ITS ORIGINATOR QUAKER OATS CO'S GATORADE NOW POWERHOUSE MARKETERS COCACOLA CO AND PEPSICO INC WHICH HAD BEEN SELLING THEIR SPORTSDRINK BRANDS ONLY IN REGIONAL MARKETS ARE STARTING TO ROLL THEM OUT NATIONALLY ALTHOUGH GATORADE STILL COMMANDS AN OVERWHELMING 863 MARKET SHARE IN SUPERMARKETS ITS SHARE ALREADY HAD SLIPPED 38 PERCENTAGE POINTS DURING THE 52 WEEKS ENDED FEB 20 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE SUPERMARKET SALES OF ALL ISOTONIC DRINKS GREW 75 TO 4308 MILLION IN THE 52WEEK PERIOD SUPERMARKETS ACCOUNT FOR NEARLY HALF THE SALES OF SPORTS DRINKS WHILE SMALLER GROCERY OUTLETS FOUNTAINS AND VENDING MACHINES ACCOUNT FOR THE REST THE 75 INCREASE IN SUPERMARKET SALES IS ONLY HALF THE GROWTH RATE THAT CRITICS EXPECTED JUST A FEW YEARS AGO IN THE LATE 1980S SO MANY EXERCISECRAZED AMERICANS WERE DOWNING THE BEVERAGE THAT MARKETERS EXPECTED THE CATEGORY TO GROW BY ABOUT 15 ANNUALLY FOR SEVERAL YEARS SAYS TOM PIRKO PRESIDENT OF BEVMARK INC A MARKETING CONSULTING COMPANY IN NEW YORK BUT MANY CONSUMERS NOWADAYS ARE INTERESTED IN PURE RATHER THAN PERFORMANCE PITCHES THERE'S BEEN A MONUMENTAL SHIFT IN THE MARKETPLACE MR PIRKO SAYS SPORTS DRINKS WHICH TYPICALLY INCLUDE SUCH ELECTROLYTES AS POTASSIUM AND SODIUM ARE PROMOTED FOR THEIR ABILITY TO REPLENISH ANY FLUIDS AND MINERALS LOST DURING EXERCISE DESPITE SLOWERTHANEXPECTED SALES GROWTH IN THE CATEGORY COKE AND PEPSI PLAN A MAJOR ASSAULT AGAINST GATORADE AND GATORADE IS MOUNTING A STRONG DEFENSE ALL THREE PLAYERS ARE EXPECTED TO SPEND AS MUCH AS 75 MILLION TO PROMOTE THEIR BRANDS THIS YEAR ANALYSTS SAY GATORADE HAS ALREADY ANNOUNCED IT IS INCREASING ITS AD BUDGET ESTIMATED AT 19 MILLION LAST YEAR BY 30 TO 50 THE COMPANIES ALSO PLAN TO SHOWER TEENAGE MALES THE MAIN CONSUMERS OF THE PRODUCTS WITH SAMPLES AND CENTSOFF COUPONS COKE AND PEPSI OFFICIALS SAY THEY'RE OPTIMISTIC THAT THEIR DISTRIBUTION MUSCLE WILL HELP PUMP UP SALES OF THEIR NEW BRANDS SO FAR SALES OF BOTH COMPANIES' PRODUCTS ARE BOOMING BECAUSE THEY'RE INTRODUCING THEIR PRODUCTS IN NEW AREAS FROM OUR STANDPOINT WE'RE JUST ENTERING THE CATEGORY NOW SAYS BRIAN SWETTE SENIOR VICE PRESIDENT NEW BUSINESS AT PEPSICOLA CO A DIVISION OF PEPSICO THAT MARKETS ALL SPORT ITS SPORTSDRINK PRODUCT ONE ADVANTAGE FOR THE NEW ENTRANTS SOUTHLAND CORP'S 7ELEVEN CHAIN LAST YEAR CHANGED ITS POLICY OF SELLING ONLY ESTABLISHED BRANDS AND SAYS IT WILL DISPLAY A VARIETY OF NEW ISOTONIC DRINKS THIS YEAR PEPSI IS RUNNING COMMERCIALS FEATURING BASKETBALL PLAYER SHAQUILLE O'NEAL WHO COMICALLY POSES AS A GRANDFATHER THE ADS CLAIM ALL SPORT HAS A MORE ADVANCED FORMULA THAN GATORADE BECAUSE IT HAS LESS SODIUM AND 33 MORE CARBOHYDRATES AND THE PRODUCT WHICH IS THE ONLY CARBONATED VERSION AMONG MAJOR SPORTSDRINK BRANDS ADDS A LITTLE SPARKLE THAT MAKES IT SPECIAL SAYS MR SWETTE SIMILARLY COKE HAS HIRED DEION SANDERS A BASEBALL AND FOOTBALL PLAYER TO PITCH ITS POWERADE BRAND AS BETTER THAN GATORADE BECAUSE IT HAS MORE CARBOHYDRATES COKE BOASTS THAT POWERADE TASTES BETTER THAN GATORADE BUT ISN'T CARBONATED LIKE ALL SPORT BECAUSE CARBONATION CAN CAUSE BLOATING AND CRAMPS QUAKER RECENTLY SNARED A PEPSI SENIOR EXECUTIVE DONALD UZZI AS PRESIDENT OF GATORADE'S NORTH AMERICA DIVISION HE IS NOW BUSY KNOCKING COMPETITORS' CLAIMS AND DEFENDING GATORADE'S SCIENTIFIC HERITAGE GATORADE WAS CREATED NEARLY 30 YEARS AGO FOR THE UNIVERSITY OF FLORIDA'S GATORS FOOTBALL TEAM HAVING MORE CARBOHYDRATES ISN'T ANYTHING TO BRAG ABOUT BECAUSE THAT ONLY SLOWS DOWN FLUID ABSORPTION MR UZZI SAYS AND RESPONDING TO COKE'S AND PEPSI'S TASTE SUPERIORITY BOASTS HE CONTENDS THAT GATORADE ACTUALLY TASTES BETTER THAN COMPETING BRANDS WHEN IT REALLY MATTERS AT THE POINT OF SWEAT WE'LL DO EVERYTHING HUMANLY POSSIBLE TO DEFEND GATORADE'S SHARE HE SAYS INCLUDING FEATURING FORMER BASKETBALL STAR MICHAEL JORDAN IN ADS AND PROMOTING BIGGER GALLON JARS IN SUPERMARKETS WITH SPECIAL DISPLAYS STILL ANALYSTS EXPECT COKE AND PEPSI TO CONTINUE TO TAKE MARKET SHARE AWAY FROM GATORADE FOR THE ENTIRE MARKET TO EXPAND FASTER ANALYSTS SAY COMPANIES MUST STOP FOCUSING SO INTENSELY ON TEENAGE MALES AND PITCH THEIR DRINKS TO OTHER CONSUMERS AS WELL SUNTORY WATER GROUP INC A UNIT OF JAPAN'S SUNTORY LTD THAT MAKES 10K THE DISTANT NO 2 SPORTSDRINK BRAND IS ALREADY ATTEMPTING TO DIVERSIFY BY TAPPING 8 TO 14YEAROLDS BY ADVERTISING MOSTLY ON THE NICKELODEON CABLE NETWORK 9404260105 940426 BOEING EARNINGS DECLINED 10 IN FIRST QUARTER STEEPER FALL WAS EXPECTED SHRONTZ SAYS WEAKNESS IN AIRLINES IS ABATING BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL SEATTLE BOEING CO REPORTED A 10 DECLINE IN FIRSTQUARTER EARNINGS BUT SECURITIES ANALYSTS HAD EXPECTED A SOMEWHAT SHARPER DROP BOEING'S NET INCOME FELL TO 292 MILLION OR 86 CENTS A SHARE FROM A YEAREARLIER 325 MILLION OR 96 CENTS A SHARE BOEING'S SALES SLID 44 IN THE PERIOD TO 635 BILLION FROM 664 BILLION IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE BOEING ROSE 1 A SHARE OR 23 TO CLOSE AT 4475 PHIL FRIEDMAN AN ANALYST FOR MORGAN STANLEY & CO SAID HE BELIEVED WALL STREET HADN'T APPROPRIATELY ADJUSTED THEIR NUMBERS AFTER BOEING ANNOUNCED EARLIER THIS MONTH A SURPRISINGLY HIGH ESTIMATE OF 82 FIRSTQUARTER AIRLINER DELIVERIES MR FRIEDMAN WHOSE OWN PERSHARE ESTIMATE HAD BEEN 84 CENTS AFTER THE BOEING DELIVERY ANNOUNCEMENT ADDED THAT THE ONE POSITIVE SURPRISE IN BOEING'S FIRSTQUARTER NUMBERS WAS THAT THE COMPANY GENERATED A POSITIVE AMOUNT OF CASH IN THE QUARTER INDEED THE MEAN ESTIMATE FROM ANALYSTS HAD BEEN 72 CENTS A SHARE FOR THE AIRCRAFT MANUFACTURER AND DEFENSE CONTRACTOR ALTHOUGH MOST ANALYSTS WHO FOLLOW THE COMPANY CLOSELY WERE PROJECTING EARNINGS AROUND 80 CENTS A SHARE BOEING CHAIRMAN FRANK SHRONTZ TOLD SHAREHOLDERS AT THE COMPANY'S ANNUAL MEETING THAT THE PROLONGED WEAKNESS AMONG AIRLINES APPEARS TO BE BOTTOMING OUT WHICH INDICATES THAT BOEING'S ORDERS WILL EVENTUALLY BEGIN TO STRENGTHEN HE ADDED HOWEVER THAT I DON'T THINK WE CAN BE SURE OF THAT UNTIL OUR AIRLINE CUSTOMERS START TO ENJOY SOME SUSTAINED RETURNS BOEING SAID IT CONTINUES TO PROJECT TOTAL DELIVERIES THIS YEAR IN THE 260 RANGE WITH TOTAL SALES FOR THE YEAR IN THE 21 BILLION RANGE SALES FOR 1993 TOTALED 2544 BILLION AND IT DELIVERED 330 JETLINERS LAST YEAR NET INCOME FELL IN THE QUARTER BECAUSE OF WORLDWIDE WEAKNESS IN THE AIRLINE INDUSTRY WHICH LED TO REDUCED ORDERS FOR COMMERCIAL JETS OTHER FACTORS IN THE QUARTER WERE LOWER CORPORATE INVESTMENT INCOME AND HIGHER INTEREST EXPENSE PARTLY OFFSETTING THOSE FACTORS WAS LOWER RESEARCHANDDEVELOPMENT EXPENSE 419 MILLION IN THE FIRST QUARTER DOWN FROM A YEAREARLIER 450 MILLION MR SHRONTZ SAID HE EXPECTS RESEARCHANDDEVELOPMENT EXPENSE FOR THE FULL YEAR TO BE SOMEWHAT HIGHER THAN FOR 1993 BECAUSE THE COMPANY WILL CONTINUE TO INVEST IN ADVANCED AIRPLANES AS A MEANS OF HELPING PROTECT ITS 62 SHARE OF THE WORLD MARKET OVER THE LONG TERM THESE AIRPLANES INCLUDE THE NEW 737700 VERSION OF ITS SMALLEST TWOENGINE AIRLINER 9404260104 940426 INTERNATIONAL ABDUCTION OF ANOTHER TOP EXECUTIVE UNDERMINES MEXICO'S EFFORT TO LIFT PESO BY CRAIG TORRES AND PAUL B CARROLL STAFF REPORTERS OF THE WALL STREET JOURNAL MEXICO CITY MEXICO'S STRUGGLE TO STABILIZE ITS ECONOMIC AND POLITICAL LANDSCAPE WAS THWARTED AGAIN THIS TIME BY THE KIDNAPPING OF ANOTHER PROMINENT BUSINESSMAN THE LATEST IN A STRING OF PROBLEMS TO AFFLICT THE COUNTRY THIS YEAR THE MEXICAN CENTRAL BANK HAD FINALLY MANAGED TO ATTACK ONE OF THE ECONOMY'S BIGGER PROBLEMS YESTERDAY PUSHING THE PESO UP 082 AGAINST THE DOLLAR TO 3340 PESOS PER DOLLAR FROM 3360 BUT RUMORS OF THE KIDNAPPING UNDERCUT THE GAINS BY THE PESO WHICH HAD BEEN UP AS MUCH AS 35 AGAINST THE DOLLAR DURING THE DAY TO 325 PESOS PER DOLLAR THE PESO'S STRENGTH HAD PUSHED THE STOCK MARKET'S BENCHMARK IPC INDEX UP ABOUT 4 IN EARLY TRADING YESTERDAY SEEMINGLY CONTINUING THURSDAY'S AND FRIDAY'S CONFIDENCEBUILDING REBOUND FOLLOWING A DEBACLE EARLY LAST WEEK BUT ONCE THE KIDNAPPING OF ANGEL LOSADA MORENO VICE CHAIRMAN OF GRUPO GIGANTE SA WAS CONFIRMED THE GAIN TURNED INTO A LOSS OF 1823 POINTS OR 082 SHARES OF GIGANTE ONE OF MEXICO'S LARGEST RETAILERS FINISHED DOWN 11 ON THE NEWS WHILE THE MOTIVES FOR THE KIDNAPPING AREN'T YET CLEAR IT IS SURE TO BE SEEN AS PART OF A PATTERN OF DESTABILIZING EVENTS THAT HAVE HIT MEXICO SINCE JAN 1 SEEMINGLY EVERY TIME THE POLITICAL ECONOMIC AND SOCIAL CLIMATES HAVE BEEN ABOUT TO SETTLE DOWN MEXICO HAD BEEN RELATIVELY PEACEFUL FOR DECADES BUT SINCE THE START OF THIS YEAR IT HAS BEEN FACED WITH AN INDIAN UPRISING THE KIDNAPPING OF A BILLIONAIRE IN MARCH THE ASSASSINATION OF THE RULINGPARTY PRESIDENTIAL CANDIDATE AND NOW THE HIGHPROFILE KIDNAPPING OF A BILLIONAIRE'S SON IT MAY ALL BE COINCIDENCE BUT THE UNCERTAINTY HELPED CAUSE ECONOMIC GROWTH TO SLOW TO 05 IN THE FIRST QUARTER IF THE PROBLEMS DON'T LET UP THE REPERCUSSIONS OF THE UNCERTAINTY COULD SPREAD FURTHER TOO BECAUSE PROGRESS ON SUCH SOCIAL REFORMS AS AN ATTACK ON RAMPANT POVERTY REQUIRE A STRONG ECONOMY MEXICAN FINANCE OFFICIALS WERE UNAVAILABLE TO COMMENT YESTERDAY MEXICAN AND CANADIAN CENTRAL BANK AND FINANCE MINISTRY OFFICIALS ARE MEETING THEIR US COUNTERPARTS IN WASHINGTON TODAY AND ARE EXPECTED TO MAKE A STATEMENT ABOUT THE PESO WITH THE PESO AT THE BOTTOM OF ITS OFFICIAL TRADING RANGE LAST WEEK AND WITH FOREIGN INVESTORS FEARING A DEVALUATION THE GOVERNMENT NEEDED TO REASSURE INVESTORS ABOUT THE PESO OTHERWISE MEXICO COULD LOSE ACCESS TO MUCH OF THE FOREIGN CAPITAL IT NEEDS TO FINANCE ECONOMIC GROWTH THE CENTRAL BANK HAD APPEARED FINALLY TO HAVE ACHIEVED SOME REASSURING NEWS BY HALTING WHAT ANALYSTS FIGURE HAS BEEN A 10 BILLION EXCHANGE OF PESOS FOR DOLLARS SINCE THE ASSASSINATION OF PRESIDENTIAL CANDIDATE LUIS DONALDO COLOSIO A MONTH AGO BUT SUPPORTING THE PESO REQUIRED A HUGE INCREASE IN SHORTTERM INTEREST RATES LAST WEEK TO 18 A MOVE THAT THREATENED TO SLOW AN ALREADY SLUGGISH ECONOMY THE RISE IN INTEREST RATES EVEN HAS POLITICAL IMPLICATIONS MEXICAN FINANCE MINISTRY OFFICIALS ARE TRYING TO SPUR ECONOMIC GROWTH THIS YEAR AND BOLSTER THE CAMPAIGN OF ERNESTO ZEDILLO THE RULINGPARTY CANDIDATE AND CLOSE FRIEND OF MANY FINANCE MINISTRY OFFICIALS SO STARTING ON FRIDAY THE CENTRAL BANK BANCO DE MEXICO STARTED STEP ONE OF THE ATTEMPTED RESCUE OPERATION PURCHASING CLOSE TO 2 BILLION IN MEXICAN TREASURY CERTIFICATES OR CETES OUT OF THE SECONDARY MARKET THIS HAD THE EFFECT OF REDUCING THE SUPPLY OF CETES AND HELPING THE ECONOMY BY GUIDING RATES LOWER THE CENTRAL BANK EMERGED AGAIN YESTERDAY AS A MASSIVE BUYER OF CETES IT ALSO ANNOUNCED A SUPPLY REDUCTION AND OTHER CHANGES IN THIS WEEK'S CETES AUCTION A MOVE THAT SHOULD LOWER RATES ON THE KEY 28DAY ISSUE TO ABOUT 17 TO 175 SAID JOHN LIEGEY PRESIDENT OF THE WESTON GROUP A NEW YORK PESO BROKER SECONDLY BANCO DE MEXICO TRIED TO LURE FOREIGN INVESTMENT BACK INTO THE COUNTRY BY MAKING CHANGES THAT SHOULD SLIGHTLY BOOST YIELDS ON TREASURY BONDS OR TESOBONOS THESE BONDS GUARANTEE A DOLLARPESO EXCHANGE RATE UPON REDEMPTION THUS ELIMINATING FOREIGNEXCHANGE RISK BUT INVESTOR CONFIDENCE IS THREATENED BY THE KIDNAPPING OF THE 40YEAROLD MR LOSADA MORENO WHO WAS APPARENTLY PULLED OUT OF HIS VAN BY SIX GUNMEN WHO MANAGED TO STOP HIM IN THE WEALTHY NEIGHBORHOOD OF POLANCO MUCH AS BILLIONAIRE ALFREDO HARP HELU PRESIDENT OF GRUPO FINANCIERO BANAMEXACCIVAL SA WAS PULLED FROM HIS CAR LAST MONTH IN ANOTHER WELLTODO AREA THE KIDNAPPERS DIDN'T IMMEDIATELY MAKE CLEAR WHAT THEIR DEMANDS WERE OR WHETHER THEY HAD SEIZED MR LOSADA FOR POLITICAL REASONS OFFICIAL SOURCES HAVE BLAMED THE TAKING OF MR HARP WHO IS STILL BEING HELD CAPTIVE ON A PROFESSIONAL BAND OF KIDNAPPERS AND HAVE SAID THE MOTIVES ARE PURELY MONETARY BUT THE TWO KIDNAPPINGS WILL INEVITABLY BE LINKED IN PEOPLE'S MINDS AND RAISE QUESTIONS ABOUT WHETHER SOME SHADOWY GROUP ISN'T TRYING TO STIR UP THE POLITICAL SITUATION ODDLY ENOUGH PERSISTENT BUT FALSE RUMORS HAD CIRCULATED A FEW WEEKS AGO THAT MR LOSADA'S BILLIONAIRE FATHER GIGANTE FOUNDER ANGEL LOSADA GOMEZ HAD BEEN ABDUCTED 9404260103 940426 ASTRA MITSUBISHI KASEI SIGN PACT COPENHAGEN SWEDEN'S AB ASTRA AND MITSUBISHI KASEI CORP MKC OF JAPAN HAVE SIGNED A LONGTERM COOPERATION AGREEMENT FOR THE DEVELOPMENT AND MARKETING OF MKC'S PHARMACEUTICAL PRODUCTS IN SEVERAL KEY MARKETS SUCH AS EUROPE AUSTRALIA AND NEW ZEALAND THE AGREEMENT COVERS ALL RESEARCH PROJECTS AS WELL AS FUTURE PROJECTS WHICH REACH THE CLINICAL TRIAL PHASE BY THE TURN OF THE CENTURY ASTRA SAID MKC IS ONE OF JAPAN'S LEADING CHEMICAL COMPANIES WITH ANNUAL SALES OF 10 BILLION IT HAS INTERESTS IN CARDIOVASCULAR GASTROINTESTINAL AND CENTRAL NERVOUS SYSTEM TREATMENTS 9404260102 940426 WORLD MARKETS TOKYO STOCKS SLUMP 13 IN DEALINGS THINNED BY COMING HOLIDAYS LONDON PRICES END AT LOWS A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS SLUMPED 13 IN LIGHT TRADING MONDAY AS MANY INVESTORS BOWED OUT AHEAD OF A HOLIDAY PERIOD WHILE INDEXLINKED ARBITRAGE SELLING KEPT PRICES UNDER PRESSURE LONDON SHARES FINISHED AT THE DAY'S LOWS MAINLY BECAUSE OF WEAK BRITISH GOVERNMENTBOND AND FUTURES MARKETS FRANKFURT PRICES FELL IN A BREATHER AFTER LAST WEEK'S GAINS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11371 UP 029 REFLECTING HIGHER AMERICAN MARKETS AND LOWER ASIA/PACIFIC AND EUROPEAN MARKETS SEMICONDUCTOR STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 20887 UP 467 OR 23 WITH ANALOG DEVICES OF THE US POSTING A 48 GAIN IN ITS LOCAL CURRENCY FISHING STOCKS TRAILED AT 8248 DOWN 091 OR 11 WITH UNICORD OF THAILAND SLIDING 47 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 16503 POINTS FRIDAY SKIDDED 25525 TO 1970914 IN TRADING TUESDAY THE NIKKEI INDEX FELL 15853 POINTS TO CLOSE THE MORNING SESSION AT 1955061 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT A WEAK 250 MILLION SHARES DOWN FROM 308 MILLION SHARES IN THE PREVIOUS SESSION LOSERS TROUNCED GAINERS 702310 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH GAINED 830 POINTS FRIDAY LOST 1137 TO 160443 MANY INVESTORS KEPT TO THE SIDELINES AHEAD OF JAPAN'S GOLDEN WEEK HOLIDAYS WHICH WILL BEGIN FRIDAY IN ADDITION DEALERS' ACTIVITY FOR THEIR OWN ACCOUNTS TRAILED OFF MONDAY THE LAST TRADING DAY FOR THE MONTHLY SETTLEMENT AFTER LOSING GROUND AT THE OPENING BECAUSE OF INDEXLINKED ARBITRAGE SELLING AND FEARS ABOUT THE JAPANESE YEN'S STRENGTH THE NIKKEI FOUND SUPPORT FROM BARGAINHUNTERS PRESSURE FROM ARBITRAGE SELLING WAS PERSISTENT BUT BUYING BY INVESTMENT TRUST FUNDS EMERGED TO PREVENT THE NIKKEI FROM FALLING EVEN FURTHER THE SELECTION BY JAPAN'S PARLIAMENT OF TSUTOMU HATA TO BE PRIME MINISTER HAD ALREADY BEEN TAKEN INTO ACCOUNT BY THE MARKET WHICH AWAITED THE NEW GOVERNMENT'S STANCE ON POLICIES SUCH AS HOW JAPAN WILL TRY TO DEFUSE TRADE TENSIONS WITH THE US IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX LOST 276 POINTS TO 31061 WHICH ALSO WAS THE SESSION LOW THE FT 30STOCK INDEX DROPPED 230 POINTS TO 24779 VOLUME WAS 5188 MILLION SHARES OFF SHARPLY FROM 8162 MILLION SHARES IN THE PREVIOUS SESSION PARTLY BECAUSE YESTERDAY WAS THE FIRST DAY OF THE NEW TRADINGACCOUNT PERIOD THE 100STOCK INDEX'S INTRADAY HIGH WAS A GAIN OF LESS THAN A POINT UNAIDED BY EARLY STRENGTH ON WALL STREET THE LONDON BOURSE WAS PRESSURED BY THE FUTURES AND GILTS MARKETS ELECTRICITY STOCKS LOST MORE GROUND ON A NEWS REPORT SUGGESTING THAT BRITISH REGULATORS COULD ADOPT A TOUGHER LINE ON UTILITY PRICING STOCK INVESTORS BARELY TOOK NOTICE OF DATA ON BRITISH TRADE AND GROSS DOMESTIC PRODUCT EVEN THOUGH BOTH REPORTS WERE FAIRLY GOOD AND IN LINE WITH MARKET EXPECTATIONS MEANWHILE SOME INVESTORS WERE PLAYING IT SAFE AHEAD OF MAY 5 LOCAL ELECTIONS IN BRITAIN IN FRANKFURT THE DAX 30STOCK INDEX FELL 1170 POINTS TO 220222 FRACTIONALLY ABOVE THE DAY'S LOW IN A SLIGHT CORRECTION AFTER GAINING 4150 POINTS AT THE END OF LAST WEEK TRADING YESTERDAY WAS CALM AND MARKED BY PROFITTAKING ESPECIALLY AMONG AUTO SHARES WHILE BANKS AND UTILITIES FOUND BUYERS IN PARIS STOCKS FELL ON THE FIRST DAY OF THE MAY TRADING ACCOUNT WITH APATHY REIGNING AFTER FRIDAY'S RALLY IN AMSTERDAM SHARES DROPPED BROADLY IN LISTLESS TRADING DOMINATED BY FALLING PRICES OF GERMAN GOVERNMENTBOND FUTURES AND DUTCH BONDS A WEAKER US DOLLAR AND SOFTNESS ON EUROPEAN BOURSES IN ZURICH PRICES DECLINED PRESSURED BY FEARS OF HIGHER INTEREST RATES THOUGH THE MARKET ENDED WELL ABOVE THE DAY'S LOWS BECAUSE OF LATE BARGAINHUNTING IN MEXICO CITY STOCKS DROPPED ON NEWS THAT GRUPO GIGANTE'S EXECUTIVE VICE PRESIDENT WHO ALSO IS THE SON OF THE OWNER OF THE COUNTRY'S SECONDLARGEST RETAIL CHAIN WAS KIDNAPPED THE ABDUCTION FOLLOWED THE MARCH 14 KIDNAPPING OF THE PRESIDENT OF GRUPO FINANCIERO BANAMEXACCIVAL MEXICO'S LARGEST FINANCIAL INSTITUTION THE EXECUTIVE IS STILL BEING HELD FOR RANSOM IN HONG KONG SHARES DECLINED IN A DIRECTIONLESS SESSION MARKED BY THE LOWEST TURNOVER IN TWO WEEKS LITTLE FRESH NEWS EMERGED TO INFLUENCE ACTIVITY AND A DECISION BY BANKS IN THE BRITISH COLONY TO HOLD OFF ON TIGHTENING CREDIT FAILED TO REMOVE WORRIES THAT RATES WILL HEAD HIGHER BUT IN SINGAPORE THE MARKET JUMPED 19 ON BROAD BUYING OF BLUE CHIPS AMID POSITIVE SENTIMENT AS THE TREND SHIFTED AWAY FROM SELECTIVE BUYING THOUGH VOLUME WAS MODERATE IN KUALA LUMPUR STOCKS RALLIED ALMOST 2 BUOYED BY SOME BLUE CHIPS INSTITUTIONAL INVESTORS MAINLY MALAYSIAN FUND MANAGERS STEADILY BOUGHT ESTABLISHED ISSUES WHILE RETAIL INVESTORS WERE MORE CAUTIOUS AND SPECULATIVE STOCKS WERE HIT BY BRISK PROFITTAKING IN TAIPEI EQUITIES ADVANCED 14 WITH GAINS ACROSS THE BOARD ON CONTINUED STRONG TRADING IN BLUECHIP INDUSTRIAL CYCLICALS INDICATING BUYING ON MARKET FUNDAMENTALS AN ESTIMATED LOWER GROWTH RATE FOR MARCH IN A TAIWAN MEASURE OF THE MONEY SUPPLY SIGNALED THAT THE CENTRAL BANK CAN CONTINUE ITS CURRENT LOOSE MONETARY POLICY WITH DECLINING INTEREST RATES WHICH WILL AID THE ECONOMY IN MANILA SHARES CLIMBED 18 IN BUSY TRADING AND STRONG BUYING BY PHILIPPINE LOCAL AND FOREIGN INVESTORS BULLISH SENTIMENT PREVAILED ON PROSPECTS FOR THE COUNTRY'S ECONOMIC PERFORMANCE THIS YEAR IN SEOUL PRICES FINISHED MIXED AFTER A BARRAGE OF PROFITTAKING WIPED OUT EARLY GAINS LARGE BLUE CHIPS ENDED SLIGHTLY HIGHER ON STRONG INTEREST FROM OVERSEAS INVESTORS WHO HOPE FOR EASED SOUTH KOREAN LIMITS ON FOREIGN STOCK OWNERSHIP IN BANGKOK STOCKS FELL 12 IN LIGHT TRADING ON PROFITTAKING AND SELLING OF LARGECAPITALIZATION BLUE CHIPS THE MARKET WAS PARTLY PRESSURED BY A POSSIBLE RISE IN INTEREST RATES AS WELL AS A WEEKEND BOMBING INCIDENT AND WARNINGS OF TERRORIST ACTIVITY NEXT MONTH AMONG CORPORATE DEVELOPMENTS IN LONDON REUTERS HOLDINGS RALLIED 12 PENCE OR 24 TO 517 PENCE 770 THE INFORMATION AND PUBLISHING GROUP'S FIRSTQUARTER REVENUE CLIMBED 15 TO 513 MILLION 7644 MILLION FROM A YEAR EARLIER 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 9404260101 940426 INTERNATIONAL ABB ASEA BROWN BOVERI ORDER ZURICH ABB ASEA BROWN BOVERI LTD PARENT OF A MAJOR ELECTRICAL ENGINEERING GROUP ANNOUNCED THAT A CONSORTIUM IT LEADS RECEIVED A POWERPLANT CONTRACT VALUED AT ABOUT 400 MILLION OF WHICH APPROXIMATELY 260 MILLION IS EARMARKED FOR ABB THE ORDER FOR A TURNKEY COALFIRED POWER PLANT WAS SIGNED BY THE STATE ENERGY COMMISSION OF WESTERN AUSTRALIA THE NEW PLANT IS SET TO GO INTO SERVICE BY THE END OF 1998 ABB SAID 9404260100 940426 RECYCLING MANIA CRASHES AND BURNS IN CALIFORNIA BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL SAN MARCOS CALIF THE NATIONAL DRIVE TO RECYCLE HAS PRODUCED ITS FIRST DISASTER A 134 MILLION TRASHSORTING PLANT HERE THAT THREATENS TO FINANCIALLY CRIPPLE SAN DIEGO COUNTY'S ENTIRE WASTEDISPOSAL SYSTEM OPENED EARLIER THIS YEAR THE PLANT WAS VIEWED AS THE TRIUMPH OF GADGETRY OVER GARBAGE 200000 SQUARE FEET OF BOUNCING CONVEYORS ROLLING TROMMELS ZAPPING MAGNETS AND SMASHING BAILERS FROM RAW REFUSE THE EQUIPMENT EXTRACTS CANS BOTTLES NEWSPAPERS AND OTHER RECYCLABLES THAT OTHERWISE WOULD GO TO A DUMP BUT THE PLANT PULLS OUT FAR FEWER RECYCLABLE ITEMS THAN ITS PROMOTERS PROMISED WHAT'S MORE IN LARGE PART TO PAY FOR THE PLANT SAN DIEGO COUNTY RAISED PRICES AT ITS DUMPS SO HIGH THAT IT IS ON THE VERGE OF LOSING DISPOSAL VOLUMES TO LESS EXPENSIVE DUMPS ELSEWHERE THE SAN DIEGO UNIONTRIBUNE IN AN EDITORIAL CALLS THE PLANT A MONSTROUS MISTAKE THE EXPERIENCE HAS IMPLICATIONS FOR LOCALITIES AROUND THE COUNTRY THE NATION IS NOW IN THE GRIP OF A MULTIBILLIONDOLLAR RECYCLING MANIA THAT GREW OUT OF TWO BELIEFS THE US WAS RUNNING OUT OF DUMP SPACE AND RECYCLING OF HOUSEHOLD WASTE MAKES INHERENT ECONOMIC AND ENVIRONMENTAL SENSE BUT BOTH BELIEFS ARE DEBATABLE DUMP SPACE IS ABUNDANT IN ALL BUT A FEW AREAS AND LOCALIZED SHORTAGES AREN'T A BIG PROBLEM BECAUSE HAULERS ARE ADEPT AT CHEAPLY SHIPPING TRASH LONG DISTANCES AND WHILE SUCH ITEMS OF WASTE AS ALUMINUM AND WHITE OFFICE PAPER ARE BIG WINNERS BOTH ENVIRONMENTALLY AND ECONOMICALLY MANY OTHERS ARE VERY COSTLY TO RECYCLE AND OFFER LITTLE CONVINCING ENVIRONMENTAL BENEFIT STILL AT LEAST 40 STATES HAVE LAWS THAT ARE PUSHING MUNICIPALITIES TO RECYCLE LARGE PORTIONS OF TRASHGOALS THAT IN MANY CASES ARE VIEWED BY CRITICS AS BOTH UNREALISTIC AND UNECONOMICAL NEW YORK CITY WAS ORDERED EARLIER THIS YEAR BY A STATE COURT JUDGE TO ENLARGE ITS RECYCLING PROGRAM WHICH WILL REQUIRE THE CITY TO DIVERT 4300 TONS A DAY FROM DUMPS BY JULY 1995 ROUGHLY DOUBLE TODAY'S LEVEL THE EXTRA RECYCLING COULD COST AN ADDITIONAL 100 MILLION A YEAR RESIDENTIAL RECYCLING IS COSTLY IT REQUIRES A SECOND FLEET OF TRUCKS AND DRIVERS AND BIG INVESTMENTS IN PROCESSING PLANTS COLLECTION COSTS WILL PROBABLY NEVER BE ENTIRELY OFFSET BY THE SALE OF RECYCLED MATERIALS PREDICTS JOHN F RUSTON AN ECONOMIC ANALYST AT THE ENVIRONMENTAL DEFENSE FUND IN NEW YORK MANY OF THE COSTS OF RECYCLING ARE BEING PASSED ALONG TO CONSUMERS IN THE FORM OF HIGHER RUBBISH BILLS PROPERTY TAXES OR OTHER MUNICIPAL FEES BUT AT A FEW DOLLARS PER HOUSEHOLD THESE FEES ARE LITTLE NOTICED IN SAN DIEGO COUNTY HOWEVER WITH ITS HUGE INVESTMENT IN A SINGLE PLANT RECYCLING'S PROBLEMS ARE VISIBLE AND HAVE BECOME A DIVISIVE POLITICAL ISSUE PETER NAVARRO A CANDIDATE FOR COUNTY SUPERVISOR SAYS THE PLANT SHOULD BE SHUT DOWN AND CALLS ITS PROPONENTS ALL BRAIN DEAD THE PLANT IS KNOWN AS A DIRTY MURF FOR MATERIALS RECOVERY FACILITY BECAUSE IT SORTS RAW TRASH RATHER THAN SEPARATED ITEMS MOST CITIES HAVE BUILT CLEAN MURFS THE MESS GREW OUT OF THE COUNTY'S FEAR DURING THE 1980S THAT IT WOULD RUN OUT OF DUMP SPACE IT HAS MANY FEWER DUMPS TODAY BUT AMONG THEM ARE TWO BIG ONES THAT COULD HANDLE ALL THE COUNTY'S TRASH FOR YEARS TO COME PLANS TO BUILD A BIG TRASHINCINERATION PLANT IN SAN MARCOS WERE DROPPED IN 1991 BECAUSE OF LOCAL OPPOSITION AND QUESTIONABLE ECONOMICS BUT THE PROJECT HAD MOMENTUM BONDS WERE ALREADY SOLD TO BUILD IT OR TO BUILD SOMETHING AND OFFICIALS AT THE COUNTY AND AT THE COMPANY CHOSEN TO OPERATE THE INCINERATOR THERMO ELECTRON CORP DIDN'T WANT TO ABANDON THEIR YEARS OF WORK SO THE BOARD OF SUPERVISORS VOTED ESSENTIALLY TO GO AHEAD WITH THE FRONT END OF THE INCINERATION PLANT EVERYTHING BUT THE INCINERATOR THE PLANT SORTS RECYCLABLES OUT OF GARBAGE AND THEN SHREDS THE LEFTOVER WASTE INTO A FLUFF CALLED REFUSEDERIVED FUEL WITH DEBT SERVICE PAYROLL AND OTHER EXPENSES THE PLANT COSTS 27 MILLION A YEAR TO OPERATE IN THE MEANTIME EVERY CITY IN THE COUNTY HAD SET UP CURBSIDE COLLECTION FOR RESIDENCES BUT THE MORE CONSUMERS SEPARATE THE LESS THAT'S LEFT OVER AS TRASH FOR THE PLANT TO PICK OUT AND CONSUMERS SURPRISED EVERYBODY WITH THEIR ZEAL THERMO ELECTRON EXPECTED TO PULL OUT 21 BUT INSTEAD JUST 14 OF THE WASTE IT RECEIVES CAN BE RECYCLED THE SHORTFALL IS BEYOND THE PLANT'S CONTROL SAYS JERRY P DAVIS A VICE PRESIDENT OF THERMO ELECTRON WALTHAM MASS OTHERWISE THE PLANT IS WORKING LIKE A CHARM HE ADDS EVERYBODY IS DISCOVERING THAT RECYCLING ISN'T EXACTLY A MONEYMAKING OPERATION SURPRISE WITH NO INCINERATOR TO BURN THE FLUFF THE GIANT SHREDDER'S PRIMARY REASON FOR BEING IS TO COMPRESS THE VOLUME OF TRASH LEAVING THE PLANT BY ABOUT 20 DUMP SPACE IS SAVED BUT IT COSTS THE EQUIVALENT OF 8180 A TON ONE OF THE HIGHEST DISPOSAL PRICES IN THE COUNTRY EXTRACTING THE RECYCLABLE ITEMS IS COSTING 21818 A TON IF THE PLANT ACTUALLY CHARGED ENOUGH TO COVER THOSE COSTS OF COURSE NO TRASH WOULD SHOW UP SO THE COUNTY PRICES DUMPING AT THE PLANT AND ITS TWO BIG LANDFILLS AT A UNIFORM 43 A TON AND SUBSIDIZES THE PLANT HOWEVER TRASH VOLUME COUNTYWIDE THE CITY OF SAN DIEGO HANDLES ITS OWN TRASH HAS PLUMMETED TO AN EXPECTED 15 MILLION TONS THIS YEAR FROM ESTIMATES AS HIGH AS 25 MILLION TONS IN 1990 RECESSION RECYCLING AND PERHAPS BAD COUNTING IN PRIOR YEARS EXPLAIN THE DROPOFF TO COVER THE SAME COSTS ON FAR LESS VOLUME DUMP FEES HAVE TO GO UP PERHAPS TO AS HIGH AS 65 A TON THIS JULY THEY WERE JUST 8 A TON AS RECENTLY AS 1988 THAT PROSPECT HAS SOME CITIES BOLTING THE COUNTY SYSTEM EL CAJON AGREED IN RECENT WEEKS TO SEND ITS 75000 TONS A YEAR TO A WMX TECHNOLOGIES INC DUMP IN LOS ANGELES COUNTY FOR 40 A TON INCLUDING TRANSPORTATION THE CITIES OF ESCONDIDO CARLSBAD AND OCEANSIDE ARE JOINTLY NEGOTIATING TO SEND THEIR COMBINED 300000 TONS A YEAR TO A UTAH DUMP BY RAIL FOR ABOUT 53 A TON IF THOSE THREE CITIES BOLT THERE COULD BE BIG TROUBLE THE COUNTY GUARANTEED THERMO ELECTRON 550000 TONS A YEAR AND PAYS FOR THAT AMOUNT REGARDLESS OF HOW MUCH IS DELIVERED THIS YEAR IS RUNNING AT ABOUT 450000 TONS IF DUMPING AT THE PLANTS FALLS BELOW 350000 TONS THE COUNTY COULD BE IN DEFAULT ON THE 134 MILLION OF BONDS ISSUED TO BUILD THE PLANT MOVING TO AVOID THAT THE COUNTY EARLIER THIS MONTH BACKED OUT OF PLANS TO REFINANCE THE PLANT REFINANCING WOULD CUT DEBT COSTS BUT ALSO REQUIRE THE PLANT TO STAY OPEN THERMO ELECTRON GETS A 10 MILLION WALKAWAY FEE IF THE COUNTY CLOSES THE PLANT NOW THE COUNTY IS HOPING TO SET UP A SEPARATE SOLIDWASTE AUTHORITY SIGN CITIES TO BACK IT AND TRANSFER TO IT OWNERSHIP OF THE VALUABLE DUMPS AND POTENTIALLY UGLY LIABILITIES ON THE SAN MARCOS RECYCLING PLANT MAYOR JERRY HARMON OF ESCONDIDO WONDERS WHY SHOULD WE IN THE SHORT TERM MOST OF THE COUNTY'S 17 CITIES MUST CONTINUE USING COUNTY DISPOSAL BECAUSE THEY LACK A BIG PERMITTED TRANSFER STATION WHERE TRASH TRUCKS COULD DUMP AND WASTE BE REPACKED FOR A LONG HAUL OUT OF COUNTY BUT HAULERS ARE ALREADY LOOKING FOR NEW SITES WHEN THE FIRST TRANSFER STATION IS BUILT SAYS GAYE SOROKA A LOCAL OFFICIAL OF WMX TECHNOLOGIES THE NATION'S BIGGEST HAULER THE COUNTY'S GAME IS FINISHED 9404260099 940426 BUSINESS BRIEF AMERICAN PRECISION INDUSTRIES INC CONCERN PLANS TO BUY MAKER OF MOTORS IN 5 MILLION PACT AMERICAN PRECISION INDUSTRIES INC BUFFALO NY SAID IT REACHED AN AGREEMENT IN PRINCIPLE WITH HAWKER SIDDELEY HOLDINGS INC OF STAMFORD CONN TO ACQUIRE ALL THE STOCK OF ITS HAROWE SERVO CONTROLS INC UNIT WHICH DESIGNS AND MAKES PRECISION MOTORS AND FEEDBACK DEVICES FOR MOTIONCONTROL APPLICATIONS THE TRANSACTION SUBJECT TO EXECUTION OF A DEFINITIVE AGREEMENT CALLS FOR A PURCHASE PRICE OF 4 MILLION TO 5 MILLION AMERICAN SAID HAROWE HAD 1993 SALES OF ABOUT 10 MILLION AND 180 EMPLOYEES AT ITS FACILITIES IN WEST CHESTER PA AND ST KITTS IN THE BRITISH VIRGIN ISLANDS AMERICAN HAD SALES OF 513 MILLION LAST YEAR THE COMPANY MAKES HEATTRANSFER EQUIPMENT AND ELECTRONIC COMPONENTS HAWKER SIDDELEY IS A UNIT OF BTR PLC A BRITISH TIREANDRUBBER COMPANY 9404260098 940426 FOREIGN EXCHANGE DOLLAR FALLS AGAINST YEN AMID SIGNS HATA'S COALITION IS STARTING TO UNRAVEL BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR'S PERVERSE INSISTENCE ON WEAKENING IN THE FACE OF POLITICAL CRISES IN JAPAN TOOK ON FRESH MEANING YESTERDAY AMID SIGNS THAT THE COALITION OF NEWLY INSTALLED PRIME MINISTER TSUTOMU HATA IS ALREADY UNRAVELING THE DOLLAR'S RETREAT AGAINST THE YEN ALSO HELPED PUSH IT LOWER AGAINST THE MARK BUT TRADERS SAID THINGS MIGHT HAVE BEEN WORSE EXCEPT FOR AN IMPRESSIVE RALLY IN US STOCK MARKETS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16795 MARKS DOWN FROM 16900 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10310 YEN DOWN FROM 10325 YEN STERLING WAS TRADING AT 14915 UP FROM 14885 ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10320 YEN AND AT 16828 MARKS JAPAN'S SOCIAL DEMOCRATIC PARTY OR SDP FORMERLY THE LARGEST BLOC IN THE PROBLEMPLAGUED RULING COALITION ANNOUNCED IT HAD WITHDRAWN FROM HATA'S GOVERNMENT SHORTLY AFTER HE WAS CONFIRMED AS PRIME MINISTER THE SDP OBJECTED TO HATA'S SURPRISE ANNOUNCEMENT MONDAY THAT FIVE CONSERVATIVE COALITION PARTIES WOULD UNITE UNDER THE MANTLE OF HATA'S JAPAN RENEWAL PARTY THE SDP SAID THE CONSERVATIVE MERGER WOULD ECLIPSE THE SOCIALISTS AS THE COALITION'S LARGEST BLOC AND THAT AMOUNTED TO A BETRAYAL OF LAST WEEK'S AGREEMENT THAT PAVED THE WAY FOR THE COALITION'S CONTINUITY AND HATA'S ULTIMATE ELECTION WITH NO MAJORITY HATA CAN'T PUSH ECONOMIC REFORMS THROUGH THE LEGISLATURE AND REDUCE JAPAN'S TRADE GAP SAID SCOTT GROMACKI A TRADER AT THE NATIONAL BANK OF DETROIT ANY ROADBLOCK IN REDUCING JAPAN'S ALMOST 60 BILLION SURPLUS WITH THE US TENDS TO STRENGTHEN THE YEN WITH THE US PERCEIVED AS TACITLY SUPPORTING A STRONGYEN POLICY IN A BID TO NARROW THE TRADE GAP DOUBTS ARE GROWING OVER WHETHER MR HATA IS THE SAVVY POLITICIAN CURRENCY MARKETS HOPED WOULD OPEN JAPAN'S DOMESTIC MARKETS AND STIMULATE A FLAGGING ECONOMY THIS IS A POLICY GOAL THE US PREFERS OVER USING A STRONG YEN TO REDUCE JAPAN'S TRADE SURPLUS SAID WILLIAM ARNOLD CHIEF DEALER AT CHEMICAL BANK IN NEW YORK BUT HATA MAY BE THE SHORTESTSERVING PRIME MINISTER IN QUITE SOME TIME MR ARNOLD SAID WITH THE SOCIALISTS PULLING OUT IT'S BACK TO THE DRAWING BOARD MR ARNOLD NOTED THAT THE DOLLAR DID GET MILD SUPPORT FROM A CONCILIATORY STATEMENT BY US TRADE REPRESENTATIVE MICKEY KANTOR WHO SUGGESTED THAT THE US WOULD GIVE MR HATA TIME TO ORGANIZE A NEW CABINET BEFORE PRESSING HIM ON THE TRADE DISPUTE BUT THE DOLLAR WAS UNDER PRESSURE SINCE THE WEEKEND AS INVESTORS RECEIVED A GREEN LIGHT SUNDAY TO MAKE THE YEN FIRMER AFTER THE MEETING OF THE GROUP OF SEVEN OR G7 MAJOR INDUSTRIALIZED NATIONS ENDED WITHOUT ANY NEW POSITION ENUNCIATED ON THE DOLLARYEN EXCHANGE RATE WE JUST GOT THE USUAL WE BELIEVE IN AN ORDERLY FOREIGNEXCHANGE MARKET' AND WHO DOESN'T SAID BANK OF DETROIT'S MR GROMACKI EVERYTHING WAS STATUS QUO AS FAR AS THE YEN WAS CONCERNED THE ONLY PARTY THAT WANTED HELP IN SUPPORTING THE DOLLARYEN WERE THE JAPANESE SAID ALBERT SORIA FOREIGNEXCHANGE MANAGER FOR KANSALLIS OSAKE PANKKI A FINNISH COMMERCIAL BANK IN NEW YORK MR SORIA NOTED THE DOLLAR ALSO DREW A LITTLE BIT OF SUPPORT FROM YESTERDAY'S RALLY IN THE DOW JONES INDUSTRIAL AVERAGE WHICH ENDED AT 370578 UP 5710 BUT HE ADDED THAT THE DOLLAR SUFFERS MORE FROM STOCK AND BOND MARKET DECLINES THAN IT STANDS TO BENEFIT FROM GAINS IN THOSE MARKETS 9404260097 940426 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN RUSSIA SAID IT WOULD RESTORE THE STATE MONOPOLY ON ALCOHOLIC BEVERAGES IT PLANS TO LICENSE PRODUCERS BOTTLERS WAREHOUSES AND WHOLESALERS INCLUDING JOINT VENTURES AND REGULATE RETAILERS THE ORDER TO TAKE EFFECT IN THREE MONTHS AFTER NEW REGULATIONS ARE WRITTEN WOULD REINSTATE THE GOVERNMENT TRADITION OF FORECASTING ALCOHOLICDRINK CONSUMPTION AND PRODUCTION AND GRANTING LICENSES AND QUOTAS ACCORDINGLY THE MOVE IS AIMED AT DEFENDING THE ECONOMIC INTERESTS OF THE STATE AND THE RIGHTS OF CONSUMERS THE GOVERNMENT SAID SINCE RUSSIA RELINQUISHED ITS MONOPOLY AND ALLOWED IMPORTED BRANDS IN CREATING A MARKET ECONOMY POISONINGS BLAMED ON LOWQUALITY BEVERAGES HAVE INCREASED AND COUNTERFEIT BRANDS HAVE BECOME COMMON AN ESTIMATE OF REVENUE FROM THE MONOPOLY WASN'T AVAILABLE THE VODKA FRANCHISE SAID TO HAVE BEEN FIRST CLAIMED BY CZAR IVAN THE TERRIBLE FOUR CENTURIES AGO ONCE ACCOUNTED FOR 10 OF STATE REVENUE A STRIKE BY BROWNCOAL MINERS IN POLAND FORCED CURBS ON SUPPLYING ELECTRICITY TO INDUSTRY WE CAN HARDLY BALANCE THE COUNTRY'S NEEDS FOR ENERGY THE INDUSTRY MINISTRY SAID THE WALKOUT AT FOUR STATEOWNED MINES WITH ABOUT 30000 WORKERS BEGAN LAST THURSDAY OVER PLANS TO REORGANIZE THE RESOURCES SECTOR THE NATIONAL POWER AUTHORITY ORDERED BIG ELECTRICITY CONSUMERS SUCH AS STEELMAKERS TO LIMIT USAGE TO VITAL NEEDS RESIDENTIAL POWER WASN'T AFFECTED THE SHORTAGE WAS OFFSET BY ADDITIONAL ELECTRICITY IMPORTS PAKISTAN'S NATIONAL ASSEMBLY PASSED LEGISLATION TO BATTLE DRUG TRAFFICKERS BY ALLOWING THE DEATH PENALTY WHEREAS THE MAXIMUM NOW IS 25 YEARS IN JAIL AND RAISING THE MINIMUM TERM TO 25 YEARS FROM TWO THE BILL WHICH GOES TO THE SENATE ALSO PROVIDES FOR FORFEITURE OF CONVICTED TRAFFICKERS' ASSETS AFTER SOUTHEAST ASIA'S GOLDEN TRIANGLE REGION PAKISTAN IS THE WORLD'S SECONDBIGGEST SUPPLIER OF HEROIN AN ILLICIT BUSINESS THAT THE UNITED NATIONS THIS YEAR VALUED AT 25 BILLION OR 5 OF THE COUNTRY'S GROSS DOMESTIC PRODUCT A 1994 WAGE AGREEMENT WAS REACHED FOR ABOUT 120000 WORKERS IN THE STEEL INDUSTRY IN THE WESTERN GERMAN STATES OF NORTH RHINEWESTPHALIA LOWER SAXONY AND BREMEN THE ACCORD CALLS FOR INTRODUCING NEXT MONTH A 35HOUR WORKWEEK WHICH WASN'T TO HAVE BEGUN UNTIL NEXT YEAR IN RETURN WAGES WILL BE FROZEN AND BONUS PAYMENTS WILL BE REDUCED UNTIL 1996 THE PRINTING INDUSTRY NOW IS THE ONLY MAJOR WESTERN GERMAN SECTOR LACKING A WAGE PACT RUSSIA BEGAN AN AUCTION OF 287 OF THE NATURALGAS MONOPOLY GAZPROM WHICH IS CAPITALIZED AT A TOTAL OF 1308 MILLION THE SELLOFF FOR PRIVATIZATION VOUCHERS WILL CONTINUE THROUGH NEXT MONTH UNLIKE NATIONWIDE BIDDING FOR OTHER INDUSTRIAL GIANTS GAZPROM SHARES ARE BEING OFFERED IN REGIONS WITH COMPANY FACILITIES THE GOVERNMENT WILL RETAIN THE LARGEST STAKE 40 UNTIL 1996 GAZPROM WORKERS RECEIVED A 15 HOLDING AT A STEEP DISCOUNT WHILE RESIDENTS OF RUSSIA'S FAR NORTHERN REGION MAY BID ON A 6 STAKE IN COMING WEEKS AND THE REST WILL GO TO GAZPROM MALAYSIA'S KING AZLAN SHAH STEPPED DOWN TO BE SUCCEEDED BY A FELLOW SULTAN UNDER THE SYSTEM OF ROTATING MONARCHS NINE HEREDITARY SULTANS TAKE TURNS AS KING EVERY FIVE YEARS TUANKU JAAFAR TUANKU ABDUL RAHMAN WILL BE THE NEXT SUPREME SOVEREIGN UNDER THE CONSTITUTIONAL MONARCHY BEGUN IN 1957 UPON MALAYSIA'S INDEPENDENCE FROM BRITAIN THE MONARCHY HAS BEEN WEAKENED IN RECENT YEARS BY DISPUTES WITH THE GOVERNMENT ABOUT PRIVILEGES THE SULTANS HAVE A SYMBOLIC ROLE AS PROTECTORS OF THE POLITICALLY DOMINANT MALAYS AND GUARDIANS OF ISLAM BUT MOST HAVE HAD SWAY IN AWARDING GOVERNMENT CONTRACTS AND BUSINESS PERMITS THE VENEZUELAN GOVERNMENT UNLEASHED A PROGRAM TO STABILIZE THE ECONOMY INCLUDING GRADUAL INTERESTRATE REDUCTIONS UNDER THE PLAN WHICH INVOLVED COORDINATION WITH BANKS RATES WILL BE REDUCED EVERY 15 DAYS IN A BID TO OVERCOME SOUR BUSINESS AND CONSUMER SENTIMENT INVIGORATE PRODUCTION EXPAND ECONOMIC GROWTH AND IMPROVE LIVING STANDARDS IF THE ECONOMY IS TO GROW THE GOVERNMENT SAID IT MUST STABILIZE INTEREST RATES EXCHANGE RATES INFLATION THE BUDGET DEFICIT AND SALARIES ITS DECLARED GOAL IS A COMPROMISE OF SOLIDARITY WITH MAJOR SECTORS OF THE ECONOMY TO ACHIEVE MANAGED EVOLUTION OF THOSE AREAS TO SHORE UP THE FINANCIAL SECTOR THE GOVERNMENT IS MOVING TO STRENGTHEN BANK REGULATION AND RESTRUCTURE FINANCES OF THE STATE DEPOSIT GUARANTEE FUND TO HELP IT BECOME SELFSUFFICIENT RUSSIAN PRESIDENT BORIS YELTSIN'S JOBAPPROVAL RATING SAGGED TO AN ALLTIME LOW OF 19 WITH 79 DISAPPROVING IN A POLL BY THE RUSSIAN CENTER FOR PUBLIC OPINION AND MARKET RESEARCH HIS POPULARITY PEAK WAS 39 IN OCTOBER AFTER AN ATTACK ON ARMED HARDLINERS WHO OPPOSED HIS DISBANDING OF PARLIAMENT SOTHEBY'S IN LONDON SCHEDULED A JULY 18 AUCTION OF THE LIBRARY AND OTHER BELONGINGS FOUND IN THE MOSCOW APARTMENT OF KIM PHILBY A BRITISH INTELLIGENCE AGENT WHO PASSED SECRETS TO THE SOVIET UNION FOR MORE THAN TWO DECADES BEFORE DEFECTING IN 1963 HE DIED IN 1988 9404260096 940426 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY ALBERT R KARR IN THE SWING MANY WOMEN EXECUTIVES TAKE UP GOLF THE MAN'S GAME HOPING A THREEIRON CAN SMASH THE GLASS CEILING THEY SEE MEETING OTHER EXECS ON THE FAIRWAYS AS A WAY TO CLOSE BUSINESS DEALS SAYS NANCY OLIVER FOUNDER OF EXECUTIVE WOMEN'S GOLF LEAGUE ANY WOMAN WHO FINDS THAT GOLF SUITS HER AIMS SHOULD GO FOR IT SAYS ANN CRAMER AN IBM EXEC THE NATIONAL GOLF FOUNDATION SAYS NEARLY 40 OF NEOPHYTE GOLFERS ARE WOMEN A FEMALE VICE PRESIDENT FOR A NEW YORKAREA RETAILER TAKES UP GOLF TO RELAX AND MAYBE MAKE BUSINESS CONTACTS JOELLEN JACOD A CHASE HOME MORTGAGE CORP ASSISTANT VICE PRESIDENT CONSIDERS GOLF PARTLY FOR PROFESSIONAL CONTACTS FINDING A DIAMOND METAPHOR IN THE ROUGH SHE SAYS I'M JUST TRYING TO HIT ALL THE BASES BUT GEORGIA POWER VICE PRESIDENT AND SECRETARY JUDY ANDERSON ESCHEWS GOLFING FOR BUSINESS SUCCESS LIFE'S TOO SHORT SHE SAYS BEGINNERS ESPECIALLY WOMEN SHOULDN'T PLAY A COURSE BEFORE THEY ARE READY WARNS GAIL KURISU A SAN FRANCISCO WOMEN'S GOLF LEAGUE MEMBER RUNNING DISPUTE A FEMALE TRANSITPOLICE CANDIDATE SEES BIAS IN A FITNESS TEST THE SOUTH EASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY POLICE DEPARTMENT REQUIRED JOB APPLICANTS TO RUN 15 MILES IN 12 MINUTES TO BE HIRED CATHERINE LANNING ONE OF 27 WOMEN WHO TOOK THE TEST ON THE SAME DAY AND FAILED COMPLAINED TO THE PENNSYLVANIA HUMAN RELATIONS COMMISSION THE RUNNING REQUIREMENT DISCRIMINATES AGAINST WOMEN SHE SAID MS LANNING VALEDICTORIAN OF HER COUNTY POLICE ACADEMY CLASS LAST JUNE IS NOW AN INVESTIGATOR AT A RETAIL STORE SHE SAYS APPREHENDING SHOPLIFTERS OFTEN MEANS A CHASE THE REQUIREMENT FOR TRANSIT POLICE IS MORE RIGOROUS THAN THAT FOR POLICE OFFICERS IN PHILADELPHIA AND NEARBY COUNTIES HER ATTORNEY SAYS SEPTA DECLINES TO COMMENT BACK TO WORK EMPLOYERS STEP UP DISABLEDEMPLOYEE REHABILITATION MANAGING DISABILITIES IS THE NEXT FRONTIER SAYS CRAIG DOLEZAL A HEWITT ASSOCIATES HEALTHCARE CONSULTANT QUICK RETURNS TO THE JOB ENABLED SERVICEMASTER DOWNERS GROVE ILL TO CUT ANNUAL DISABILITY CLAIMS 45 TO 1500 AFTER A DOCTOR LIMITED AN INJURED HOUSECLEANING WORKER TO ONE HOUR DAILY ON HER FEET THE COMPANY HAD HER DUST SEVEN HOURS A DAY FROM A WHEELCHAIR FIRST CHICAGO LETS DISABLED EMPLOYEES TAKE PARTTIME WORK WITHOUT LOSING DISABILITY BENEFITS AT COORS BREWING HEARTATTACK VICTIMS USE ONSITE REHAB AND RESUME JOBS IN ONLY TWO MONTHS HOUSTON LIGHTING & POWER GETS 70 OF DISABLED PEOPLE BACK TO WORK THE UTILITY COORS AND STEELCASE SAY THAT SHOWING DISABLED WORKERS THEY ARE WANTED HELPS THEM RECOVER RETURNING QUICKLY TO WORK KEEPS EMPLOYEES FROM LOSING WORK HABITS AS THEY GET DISABILITY INCOME SAYS CONSOLIDATED NATURAL GAS MEDICAL DIRECTOR JOHN RUDNICK REHABILITATING ITS WORKERS WHO BECOME DISABLED CAN SAVE A COMPANY 35 IN DISABILITY PAYMENTS AND OTHER COSTS FOR EVERY 1 SPENT ON THE RECOVERY PROGRAM A NORTHWESTERN NATIONAL LIFE INSURANCE STUDY SHOWS SAVINGS IN THE NATION'S 160 BILLION ANNUAL DISABILITY EXPENSES COULD BE MUCH GREATER WHEN WORKERS RETURN TO THE SAME JOBS THE STUDY FINDS THE CARPENTERS UNION PENSION FUND PRESSES SOUTHWESTERN BELL STOCKHOLDERS TO REQUIRE THE COMPANY TO PREPARE A REPORT ON THE FUTURE IMPACT OF THE NAFTA TRADE PACT THE FUND WHICH OWNS 7200 SHARES WANTS THE REPORT TO COVER NAFTA'S EFFECT ON THE FIRM'S WORKERS CUSTOMERS STOCKHOLDERS SUPPLIERS AND COMMUNITIES AND ANY PLANS TO RELOCATE OR OUTSOURCE TO MEXICO QUID PRO QUO COMPLAINING THEY FACE MANDATORY HEALTHBENEFIT REQUIREMENTS AND COSTCUTTING SHACKLES UNDER THE CLINTON HEALTH PLAN SOME TELECOMMUNICATIONS AND OTHER EMPLOYERS SEEK A CURB ON UNIONS' ABILITY TO STRIKE FOR RICHER BENEFITS REP CASS BALLENGER R NC SOON WILL PROPOSE TAKING AWAY THE RIGHT TO STRIKE OVER HEALTHCARE ISSUES IN LABORCONTRACT NEGOTIATIONS WELFARE REFORM MAY OFFER EMPLOYERS LOWCOST BENEFITBEARING WORKERS WELFARE REFORM COULD MAKE A BIG DIFFERENCE AT OUR LOWER RUNGS LIKE HOUSEKEEPING AND BANQUET SERVICES SAYS JANET TULLY HEAD OF COMMUNITY PROGRAMS FOR MARRIOTT INTERNATIONAL WELFARE MOTHERS FROM A FEDERALLY FINANCED TRAINING PROGRAM BECOME TOP WORKERS AT ATLANTA'S MARRIOTT MARQUIS 94 ARE ON THE JOB AFTER SIX MONTHS AS LONG AS WASHINGTON IS FUNDING IT WE'RE HAPPY TO PARTICIPATE SAYS MS TULLY POOR WORKERS INCLUDING WELFARE RECIPIENTS ALREADY FILL SOME OF MCDONALD'S THOUSANDS OF JOBS BUT THE CLINTON PROPOSALS COULD REDUCE HIGH WORKER TURNOVER WHITE HOUSE OFFICIALS SAY BY SUBSIDIZING HEALTH COSTS JOB TRAINING AND HEALTH CARE THE PROPOSALS MAY BECOME A BENEFITS PROGRAM FOR BURGER FLIPPERS FRETS ONE MCDONALD'S DECLINES COMMENT THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS STUDIES REFORM'S POTENTIAL BENEFITS AS THE SUPPLY OF LOWWAGE WORKERS TIGHTENS THE CLINTON PLAN HAS POSITIVE POTENTIAL BUT LACKS ADEQUATE FINANCING FOR THE PROMISED BENEFITS SAYS LEO CULPEPPER OF THE NATIONAL RESTAURANT ASSOCIATION THE CHECKOFF THE EEOC SAYS THAT 9 OF SEXUAL HARASSMENT COMPLAINTS LAST YEAR CAME FROM MEN HOME RUNS VS HOME ALONE THE AUTO WORKERS UNION DEFENDS BASEBALL STAR BARRY BONDS'S HIGH PAY BY SAYING CHILD ACTOR MACAULAY CULKIN MADE FOUR TIMES AS MUCH LAST YEAR 9404260095 940426 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED APRIL 22 1994 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER JACKSONUNION COUNTIES REGIONAL PORT DISTRICT WILL REDEEM ON MAY 23 1994 ITS PORT FACILITIES REVENUE BONDS SERIES 1980 DUE JAN 1 2000 2005 AND 2010 THE BOATMEN'S NATIONAL BANK OF ST LOUIS IS TRUSTEE 9404260093 940426 YOUR MONEY MATTERS ADJUSTABLERATE MORTGAGES MAY STILL BE A PRETTY GOOD IDEA BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL DESPITE RISING INTEREST RATES ADJUSTABLERATE MORTGAGES LOOK PRETTY GOOD THESE DAYS SURE HIGHER RATES TRANSLATE INTO AN ALMOSTCERTAIN INCREASE IN MONTHLY MORTGAGE PAYMENTS BUT THE STARTING RATE ON AN ADJUSTABLE RATE MORTGAGE IS SO MUCH LOWER THAN TODAY'S RATES ON FIXEDRATE LOANS THAT MOST BORROWERS STILL WOULD DO BETTER WITH AN ARM FROM A PURELY FINANCIAL STANDPOINT THE VARIABLE RATE IS A BETTER DEAL SAYS TIM KOCHIS A FINANCIAL PLANNER IN SAN FRANCISCO THE AVERAGE FIRSTYEAR RATE ON 30YEAR ADJUSTABLERATE MORTGAGES WAS 516 LAST WEEK ACCORDING TO HSH ASSOCIATES A BUTLER NJ MORTGAGEINFORMATION FIRM ON 30YEAR FIXEDRATE LOANS THE AVERAGE WAS 861 ABOUT THREE AND A HALF PERCENTAGE POINTS MORE ON A 150000 LOAN THE DIFFERENCE IN PAYMENTS COMES CLOSE TO 350 A MONTH OR MORE THAN 4000 IN THE FIRST YEAR IF INTEREST RATES CONTINUE TO RISE AND THE ARM RATE INCREASES BY TWO PERCENTAGE POINTS NEXT YEAR THE MAXIMUM ANNUAL INCREASE FOR MOST ADJUSTABLERATE LOANS MONTHLY PAYMENTS WOULD STILL BE 150 OR SO LESS THAN WITH A FIXEDRATE MORTGAGE ADJUSTABLE RATES ARE USUALLY LOWER THAN FIXED RATES TO COMPENSATE FOR THE RISK THAT RATES WILL RISE THE SPREAD OR DIFFERENCE IS UNUSUALLY LARGE RIGHT NOW REFLECTING RECENT VOLATILITY IN INTEREST RATES IN GENERAL THE TYPICAL SPREAD IS ABOUT TWO PERCENTAGE POINTS SAYS MR GUMBINGER THERE ARE OTHER FACTORS TO CONSIDER BESIDES RATES WHEN SELECTING A MORTGAGE OF COURSE BORROWERS SHOULD BE ABLE TO DEAL WITH THE PSYCHOLOGY OF RATES THAT CHANGE AND HAVE THE FINANCIAL WHEREWITHAL TO WITHSTAND THOSE CHANGES SAYS MR KOCHIS THE SAN FRANCISCO PLANNER SOME FINANCIAL PROFESSIONALS PREFER THE SECURITY OF FIXED RATES MOST PEOPLE GET MORTGAGES TO BE ASSURED THAT THEY CAN HAVE THE KIND OF SHELTER AND QUALITY OF LIFE THEY WANT SAYS HAROLD EVENSKY A FINANCIAL PLANNER IN CORAL GABLES FLA I'D RATHER SEE THE BANK STUCK WITH THE RISK OF RISING RATES THAN MY CLIENT ONE IMPORTANT CONSIDERATION IS HOW LONG THE BORROWER EXPECTS TO REMAIN IN THE SAME HOME IF IT'S JUST A FEW YEARS THE LOWER ADJUSTABLE RATE IS OFTEN PREFERABLE SOMEONE EXPECTING TO STAY IN A HOME FOR 20 OR 30 YEARS MIGHT PREFER MORE STABILITY THERE ARE ADJUSTABLERATE MORTGAGES THAT RESET EVERY THREE YEARS AND SOME THAT RESET AFTER SEVEN YEARS AND ANNUALLY THEREAFTER ALTHOUGH THE STARTING RATES ARE HIGHER THAN ON LOANS THAT RESET MORE FREQUENTLY ADJUSTABLERATE MORTGAGES GAINED POPULARITY IN THE EARLY 1980S WHEN FIXED RATES WERE IN THE HIGH DOUBLE DIGITS TYPICALLY THE RATE IS LINKED TO SOME INDEX SUCH AS THE YIELD ON ONEYEAR TREASURY BILLS PLUS A MARGIN OF TWO TO TWOANDAHALF PERCENTAGE POINTS MANY LENDERS OFFER BELOWINDEX INTRODUCTORY RATES FOR THE FIRST YEAR USUALLY RATES CAN RISE OR FALL UP TO TWO PERCENTAGE POINTS A YEAR AND SIX PERCENTAGE POINTS OVER THE LIFE OF THE LOAN THE MORTGAGE BANKERS ASSOCIATION A WASHINGTON TRADE GROUP REPORTS INCREASED INTEREST IN ADJUSTABLERATE LOANS IN THE PAST FEW WEEKS NEARLY A QUARTER OF THE MORTGAGES ORIGINATED LAST WEEK WERE ARMS ACCORDING TO THE MBA COMPARED WITH ABOUT 10 WHEN RATES WERE AT THEIR 20YEAR LOWS LAST FALL WHEN RATES WERE HIGH IN THE LATE 1980S ABOUT HALF THE NEW MORTGAGES CARRIED VARIABLE RATES WHEN RATES START GOING UP MARGINAL BORROWERS CAN'T AFFORD A FIXEDRATE MORTGAGE SAYS DAVID LEREAH CHIEF ECONOMIST FOR THE MBA HE PREDICTS THAT NEXT YEAR CLOSE TO A THIRD OF THE MORTGAGES ORIGINATED WILL BE ARMS THE ADVANTAGES OF ADJUSTABLE RATES AREN'T JUST IN THE FIRST YEAR OR TWO SEPARATE STUDIES BY THE US LEAGUE OF SAVINGS INSTITUTIONS AND BY BOSTON CO NOW A UNIT OF MELLON BANK CORP SHOW THAT BORROWERS WHO CHOSE VARIABLERATE MORTGAGES HAVE SAVED TENS OF THOUSANDS OF DOLLARS OVER THE COST OF FIXEDRATE LOANS TO BE SURE THOSE STUDIES COVERED THE PAST TWO DECADES WHEN INTEREST RATES WERE FOR THE MOST PART DECLINING BUT THE BOSTON CO STUDY LOOKED AT INTEREST RATES AS FAR BACK AS THE 1950S WELL BEFORE THERE WERE ADJUSTABLERATE MORTGAGES AND DETERMINED THAT IF ARMS HAD BEEN OFFERED THERE WERE ONLY A FEW YEARS WHEN HOMEBUYERS WOULD HAVE BEEN BETTER OFF WITH A FIXED RATE EVEN NOW WHEN RATES ARE RISING MANY BORROWERS WHO HAVE HAD ADJUSTABLERATE MORTGAGES FOR YEARS ARE PAYING LESS THAN IF THEY WERE TO REFINANCE INTO A FIXEDRATE LOAN TODAY THE RATE ON A TYPICAL ONEYEAR ARM THAT WAS RESET LAST WEEK IS ABOUT 7 ACCORDING TO HSH MORTGAGES THAT RESET A MONTHANDAHALF FROM NOW BASED ON CURRENT INTEREST RATES WILL STILL BE LESS THAN 8 BORROWERS WOULD HAVE DONE BETTER IF THEY REFINANCED INTO A FIXEDRATE LOAN LAST FALL WHEN RATES WERE BELOW 7 BUT FEW PEOPLE MANAGE TO TIME INTERESTRATE TRENDS EXACTLY BESIDES REFINANCING CAN COST SEVERAL THOUSAND DOLLARS MR GUMBINGER OF HSH NOTES THAT BY RECENT STANDARDS TODAY'S RATES ARE STILL PRETTY LOW A YEARANDAHALF AGO 85 WAS CONSIDERED A MARVELOUS RATE HE SAYS MANY ECONOMISTS EXPECT RATES TO CONTINUE TO CLIMB THIS YEAR AND MAYBE NEXT BUT AT THIS POINT NO ONE IS PREDICTING A RETURN TO THE RAMPANT INCREASES OF THE 1970S WE'RE NOT IN AN INFLATIONARY ENVIRONMENT SAYS CHRISTOPHER M CONDRON VICE CHAIRMAN OF THE BOSTON CO PEOPLE WITH ADJUSTABLERATE LOANS ARE GOING TO FIND THEIR COSTS GOING UP BUT THEY'LL CONTINUE TO HAVE SIGNIFICANT SAVINGS OVER THE COST OF A FIXED RATE 9404260092 940426 LETTERS TO THE EDITOR BUMPER CROPS OF WILD SALMON HAPPY TO SEE THAT YOU HAVE TUNED IN TO THE PLIGHT OF WILD PACIFIC SALMON STOCKS AS JUDGE MARSH NOTED IN AN EARLIER RULING THE ENDANGERED SPECIES TRAIN WRECK IS GOING TO MAKE THE SPOTTED OWL LOOK LIKE A CHICKADEE UNFORTUNATELY YOU GENERATED SOME HEAVY COLLATERAL DAMAGE IN YOUR MARCH 30 ARTICLE SALMON ADVOCATES WIN FIRST BIG CASE AGAINST THE GOVERNMENT YOU AND JUDGE MARSH BOTH HAD IT CORRECT WHEN YOU MARVELED AT THE NATIONAL MARINE FISHERIES SERVICE AND THE ARMY CORPS OF ENGINEERS FOR THEIR LUDICROUS FINDING THAT THE OPERATION OF COLUMBIA RIVER DAMS RESPONSIBLE FOR MORE THAN 90 OF THE SALMON MORTALITY POSED NO JEOPARDY TO THREATENED WILD SALMON POPULATIONS YOU TURNED UP THE WRONG TRIBUTARY HOWEVER WHEN YOU SUGGESTED THAT THE ENTIRE PACIFIC SALMON RESOURCE WAS IN PERIL YOU STRAYED MUCH FURTHER WHEN YOU IMPLIED THAT THE ONLY SALMON AVAILABLE TO CONSUMERS WAS FROM SALMON FARMS IN NORWAY CHILE AND ELSEWHERE THAT IS MOST CERTAINLY NOT TRUE LAST YEAR ALASKA SALMON FISHERMEN HARVESTED A RECORD 191 MILLION SALMON INCLUDING 40 MILLION SOCKEYE SALMON FROM BRISTOL BAY ALONE AND IT WAS NOT THE RESULT OF OVERFISHING I KNOW IT'S HARD TO BELIEVE ESPECIALLY WHEN SO MANY STORIES OF THE DEATH AND DISMEMBERMENT OF WORKFISH STOCKS ARE FLOATING ABOUT THE NATIONAL AND INTERNATIONAL PRESS ALASKA FISHERMEN DELIVERED 854 MILLION POUNDS OF WILD PACIFIC SALMON LAST YEAR AND EXPECT ANOTHER BUMPER CROP THIS YEAR SELLING THAT MUCH SALMON TO US AND WORLD MARKETS IS A BIG ENOUGH JOB WITHOUT HAVING TO OVERCOME THE PERCEPTION THAT ALL WILD SALMON STOCKS ARE ENDANGERED THERE IS MORE SALMON FARMED AND WILD ON THE MARKET THAN EVER BEFORE WILD SALMON IS A HEALTHFUL DELICIOUS AND ABUNDANT SOURCE OF PROTEIN AND NOBODY SHOULD BE MADE TO FEEL GUILTY ABOUT EATING IT I MUST BRING TO YOUR ATTENTION A PROGRAM ON THE COLUMBIASNAKE RIVER SYSTEM THAT HAS CONTRIBUTED TO SALMON SURVIVAL IN RESPONSE TO THE DIFFICULTY OF MIGRATING SALMON MANEUVERING THE DAMS ON THE COLUMBIA SNAKE RIVER THE BARGE AND TOWING INDUSTRY HAVE PARTICIPATED WITH THE NATIONAL MARINE FISHERIES SERVICE AND THE US ARMY CORPS OF ENGINEERS IN THE COLLECTION AND TRANSPORT OF JUVENILE SALMON SALMON ARE COLLECTED IN SPECIALLY DESIGNED FISH BARGES CARRIED PAST THE DAMS AND RELEASED SAFELY INTO THE RIVER EXTREMELY EFFECTIVE THIS PROGRAM HAS SAFELY TRANSPORTED MORE THAN 200 MILLION FISH SINCE IT BEGAN IN 1981 AND HAS BEEN CALLED THE BEST MEASURE TO ASSURE THE SAFE MIGRATION OF JUVENILE SALMON BY FISH BIOLOGISTS WHO DEVELOPED THE DRAFT RECOVERY PLAN UNDER THE ENDANGERED SPECIES ACT ONCE SKEPTICAL GOVERNMENT OFFICIALS AND SCIENTISTS NOW FULLY SUPPORT AND ASSIST IN THIS VERY IMPORTANT PROGRAM DEMONSTRATING THAT THERE ARE FEASIBLE SOLUTIONS TO THIS SERIOUS PROBLEM IF GOVERNMENT INDUSTRY AND ENVIRONMENTAL GROUPS WORK TOGETHER AS A TEAM AND NOT ALWAYS IN OPPOSITION 9404260091 940426 CORPORATE FOCUS NATIONSBANK EXPANSION PLANS GO BEYOND US BORDERS SUPPORTER OF EASING INTERSTATE BANKING RULES SEEKS INTERNATIONAL MARKETS BY EMORY THOMAS JR STAFF REPORTER OF THE WALL STREET JOURNAL CHARLOTTE NC FOR YEARS HUGH L MCCOLL JR HAS LED THE CHARGE FOR INTERSTATEBANKING LEGISLATION INDEED THE FEISTY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NATIONSBANK CORP ONCE THREATENED TO WITHDRAW FROM ANY BANKING ASSOCIATION THAT OPPOSED THE CAUSE SO NOW THAT CONGRESS FINALLY APPEARS READY TO TEAR DOWN THE BARRIERS BLOCKING NATIONWIDE EXPANSION BY BANKS WHERE IS NATIONSBANK LOOKING TO MAKE ITS NEXT MOVE THE ANSWER IS HONG KONG WHERE THE COMPANY IS ADDING A TRADEFINANCE BRANCH AND MEXICO CITY WHERE IT WANTS TO PUT A NEW SUBSIDIARY BANK AND OTHER LOCALES WHERE THE COMPANY IS BEEFING UP ITS CORPORATEBANKING CAPABILITIES TO PREVENT BIG CUSTOMERS FROM STRAYING TO RIVAL CONCERNS FOR THEIR MORE SOPHISTICATED NEEDS HAVING ASSEMBLED MORE THAN 1900 BRANCHES IN NINE STATES AND THE DISTRICT OF COLUMBIA NATIONSBANK SAYS IT IS PAUSING TO CATCH ITS BREATH ON THE TRADITIONAL BANKING FRONT FOCUSING ON PERFORMANCE RATHER THAN EXPANSION MEANWHILE NATIONSBANK IS POURING ITS ENERGIES INTO INTERNATIONAL SERVICES AND OTHER PRODUCTS FOR ITS RAPIDLY GROWING CORPORATECUSTOMER BASE IN ADDITION TO HONG KONG AND MEXICO CITY NATIONSBANK PLANS TO ADD A BRANCH IN TAIWAN TO ADD TRADERS TO ITS FOREIGN EXCHANGE AND DERIVATIVES DESKS IN ASIA AND TO CREATE AN EMERGINGMARKETS GROUP BACK IN CHARLOTTE ON THE PRODUCT SIDE MR MCCOLL SAYS HE WOULD LIKE TO ACQUIRE A MUTUALFUND COMPANY AND POSSIBLY AN INSTITUTIONAL BROKERAGE FIRM DOMESTIC EXPANSION IS HARDLY A CLOSED SUBJECT AS ITS NAME IMPLIES NATIONSBANK STRIVES TO BE A FORCE IN THE US AND MR MCCOLL HAS SPOKEN OFFANDON OF EXPANSION AS FAR WEST AS CALIFORNIA JUST LAST YEAR THE BANK PUSHED INTO THE WASHINGTON DC MARKET BY PAYING 136 BILLION FOR MNC FINANCIAL INC TODAY MR MCCOLL ACKNOWLEDGES INTEREST IN THE CHICAGO AREA AS WELL AS IN SOUTHEASTERN AND SOUTHWESTERN STATES WHERE NATIONSBANK HAS NO PRESENCE STILL SAYS MR MCCOLL WE DON'T WAKE UP EVERY MORNING THINKING ABOUT IT ONE STRATEGIC INITIATIVE THAT DOES OCCUPY HIS THOUGHTS IS IMPROVING THE BANK'S MONEYMANAGEMENT CAPABILITIES POSSIBLY BY BUYING A MUTUAL FUND OR INSTITUTIONALASSETMANAGEMENT COMPANY NATIONSBANK CONSIDERED BUYING DREYFUS CORP HE SAYS BUT FOUND IT TOO PRICEY MELLON BANK CORP LATER AGREED TO PURCHASE THE MUTUALFUND GIANT FOR 17 BILLION MR MCCOLL SAYS NATIONSBANK MAY WAIT FOR ACQUISITION PRICES TO FALL FURTHER BEFORE BUYING A MUTUAL FUND MR MCCOLL ALSO MUSES ABOUT THE EVENTUAL PURCHASE OF AN INSTITUTIONALBROKERAGE FIRM PRIMARILY TO CAPITALIZE ON PERMISSION THE BANK RECEIVED LAST YEAR TO UNDERWRITE DEBT AND SECURITIES IF WE WANT TO UNDERWRITE EQUITIES WE'VE GOT TO ACQUIRE A HOUSE THAT DOES EQUITIES MR MCCOLL SAYS DO I WANT IT PROBABLY THE TIME FRAME FOR SUCH A MOVE IS UNCERTAIN HE SAYS NATIONSBANK EXECUTIVES SAY THEY FIRST WANT TO STREAMLINE THEIR DEBTUNDERWRITING OPERATION WHICH HAS PARTICIPATED IN FEWER THAN A DOZEN DEALS SINCE THE FEDERAL RESERVE BOARD GRANTED THE BANK APPROVAL FOR SUCH TRANSACTIONS LAST JULY MANY OF THE BANK'S PLANS REFLECT THE GROWING IMPORTANCE OF THE INSTITUTIONAL GROUP WHICH SERVES COMPANIES WITH MORE THAN 100 MILLION IN YEARLY REVENUE THE GROUP BOLSTERED BY THE ACQUISITION OF DERIVATIVES DEALER CHICAGO RESEARCH & TRADING GROUP LTD AS WELL AS IMPROVED LOAN QUALITY ACCOUNTED FOR 492 MILLION OR 33 OF NATIONSBANK'S 1993 EARNINGS A BIG JUMP FROM THE 145 MILLION OR 13 THE PREVIOUS YEAR EVEN NATIONSBANK EXECUTIVES SEEM SURPRISED WITH THE SUCCESS OF THE INSTITUTIONAL GROUP WHICH RANKED NO 4 AMONG ALL BANKS IN LOAN SYNDICATIONS LAST YEAR COMPLETING 234 DEALS COVERING 116 BILLION IN CREDIT VOLUME ACCORDING TO LOAN PRICING CORP NEW YORK AS CORPORATE BANKING GROWS IN IMPORTANCE TO NATIONSBANK SO DOES ITS INTERNATIONAL CAPABILITY NATIONSBANK HAS NO DESIGNS ON ESTABLISHING A GLOBAL CONSUMERBRANCH NETWORK EVEN REMOTELY RESEMBLING CITICORP RATHER THE COMPANY PLANS TO USE ITS FOREIGN OFFICES TO SERVE PRIMARILY US CORPORATE CUSTOMERS NBD BANCORP DETROIT FOR INSTANCE TAKES A SIMILAR APPROACH WITH ITS LONGESTABLISHED BRANCHES IN EUROPE AND THE FAR EAST RECENTLY NATIONSBANK'S EXPANDING OPERATIONS IN THE FAR EAST ENABLED THE BANK TO RETAIN A BIG CHUNK OF BUSINESS FROM PRIZED CUSTOMER TEXAS INSTRUMENTS INC NATIONSBANK HELPED ASSEMBLE A LARGE CREDIT FACILITY TOTALING 240 MILLION TO FINANCE CONSTRUCTION OF A SEMICONDUCTORCOMPUTERCHIP PLANT IN SINGAPORE BY A JOINT VENTURE INVOLVING TEXAS INSTRUMENTS WITHOUT A BRANCH IN SINGAPORE NATIONSBANK WOULD HAVE BEEN SUBJECT TO A STIFF LOCAL WITHHOLDING TAX AND WOULDN'T HAVE BEEN ABLE TO OFFER A GUARANTEE SUPPORTING A GOVERNMENT LOAN TO THE JOINT VENTURE NATIONSBANK IS USING CHICAGO RESEARCH & TRADING AS A PLATFORM FOR SOME OF ITS INTERNATIONAL EXPANSION ADDING TRADERS IN LONDON SINGAPORE AND JAPAN BUT THAT'S JUST THE BEGINNING IN HONG KONG THE BANK IS SEEKING REGULATORY APPROVAL TO OPEN A TRADEFINANCE BRANCH WITH A STAFF OF 10 TO 20 PEOPLE WHO WILL HANDLE LETTEROFCREDIT TRANSACTIONS A BRANCH IN TAIWAN WILL PROBABLY FOLLOW MEXICO MAY REPRESENT THE BIGGEST OPPORTUNITY FOR NATIONSBANK MR MCCOLL WHO DISPLAYS A PICTORIAL BOOK OF MEXICO ON THE COFFEE TABLE IN HIS OFFICE ENVISIONS EVENTUALLY OFFERING A BROAD ARRAY OF FINANCIAL SERVICES SOUTH OF THE BORDER INCLUDING POSSIBLY MORTGAGES AND CONSUMER LOANS FOR NOW NATIONSBANK PLANS TO ESTABLISH A MEXICAN SUBSIDIARY BANK CONCENTRATING ON CORPORATEBANKING SERVICES SUCH AS TRADE FINANCE AND CURRENCY EXCHANGE ALSO IN MEXICO NATIONSBANK EARLIER THIS MONTH SAID IT ACQUIRED A 10 INTEREST IN THE LARGE FACTORING UNIT OF GRUPO FINANCIERO BANCOMER SA MEXICO CITY A FACTOR WHICH BUYS AND MANAGES ACCOUNTS RECEIVABLE FOR OTHER COMPANIES REQUIRES DETAILED INFORMATION ON PURCHASERS OF GOODS BANCOMER'S FAMILIARITY WITH MEXICAN COMPANIES COULD GIVE NATIONSBANK A LEG UP ON COMPETITORS THERE THE DEAL WITH BANCOMER MIRRORS AN ARRANGEMENT WITH CANADIAN FACTOR ACCORD FINANCIAL CORP TORONTO AND SIGNALS NATIONSBANK'S EAGERNESS TO CAPITALIZE ON THE NORTH AMERICAN FREE TRADE AGREEMENT DESPITE THE HEIGHTENED FOCUS ON THE INSTITUTIONAL GROUP THE GENERAL BANK INCLUDING A 1900BRANCH RETAIL FRANCHISE REMAINS THE CORE OF NATIONSBANK CONTRIBUTING 740 MILLION IN NET INCOME TO A 1993 BOTTOM LINE OF 15 BILLION PERFORMANCE NOT EXPANSION IS THE ORDER OF THE DAY IN THE GENERAL BANK THAT SEGMENT'S EFFICIENCY RATING MEASURED BY CERTAIN EXPENSES DIVIDED BY REVENUE IS 68 WELL OFF THE INDUSTRY STANDARD OF ABOUT 63 LOWER IS BETTER THE BANK IS SHOOTING FOR 60 WITHIN FIVE YEARS 9404260090 940426 MUTUAL FUNDS IBM IS ASSAILED OVER PLANS TO SELL FUNDS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP'S PLAN TO SELL ITS LITTLEKNOWN MUTUALFUND GROUP IS CAUSING A FUSS MARKING THE LATEST EXAMPLE OF A MUTUALFUND BOARD COMING UNDER FIRE MOST PEOPLE DON'T EVEN KNOW THAT IBM HAS A 650 MILLION MUTUALFUND GROUP LET ALONE THAT ITS PLANNED SALE WOULD PROVOKE AN OUTBURST FROM JOHN BOGLE OUTSPOKEN CHAIRMAN OF BIG MUTUALFUND COMPANY VANGUARD GROUP WHICH WANTED TO RUN THE FUND BUT MR BOGLE HAS PLENTY TO SAY HE SAYS THE BOARD OF TRUSTEES OF IBM'S MUTUAL FUNDS HAD A FIDUCIARY DUTY TO TURN THE GROUP'S MANAGEMENT OVER TO THE COMPANY THAT WOULD CHARGE THE LOWEST FEES TO SHAREHOLDERS NAMELY VANGUARD WHICH IS BASED IN VALLEY FORGE PA INSTEAD THE BOARD EARLIER THIS MONTH ENDORSED A PLAN TO SELL THE FIVE STOCK AND BOND FUNDS FOR 14 MILLION TO A SUBSIDIARY OF FLEET FINANCIAL GROUP INC OF PROVIDENCE RI IT WAS A CHOICE OF 14 MILLION GOING STRAIGHT TO IBM OR 10 MILLION IN SAVINGS TO THE FUND SHAREHOLDERS OVER A DECADE SAYS MR BOGLE A LONGTIME CHAMPION OF LOWCOST MANAGEMENT OF MUTUAL FUNDS ARE THE SHAREHOLDERS GETTING A FAIR SHAKE IN THESE DECISIONS SAYS BOB BRAUN A SPOKESMAN AT IBM CREDIT CORP WHICH MANAGES THE FUND ARM OF IBM SELLING THE FUNDS IS CONSISTENT WITH IBM'S LONGTERM STRATEGY AND FLEET HAD THE BEST ACQUISITION PROPOSAL THE MUTUALFUND SHAREHOLDERS WILL FIND THAT FLEET HAS LOWER COSTS THAN A MAJORITY OF THE ALTERNATIVE PROPOSALS MR BRAUN ADDED PROXY MATERIAL INDICATES THE TRUSTEES REVIEWED PROPOSALS FROM EIGHT INVESTMENT ADVISORY ORGANIZATIONS AFTER A SEARCH LED BY LEHMAN BROTHERS THE IBM FUND GROUP'S 70000 SHAREHOLDERS ARE SCHEDULED TO VOTE ON THE SALE TO FLEET BEFORE A SPECIAL MEETING ON JUNE 15 WE ARE CONSIDERING OUR OPTIONS WHICH INCLUDE MAYBE SOME KIND OF PROXY FIGHT SAYS MR BOGLE THOUGH HE SAYS THAT SUCH A MOVE WOULD BE UNGENTLEMANLY HE ADDS WE ARE ALSO PLANNING TO CONTACT THE BOARD TO ASK FOR A REHEARING ON A MODIFIED PROPOSAL THAT WOULD INCLUDE RUNNING THE IBM MONEYMARKET ACCOUNT WITH 349 MILLION IN ASSETS AT A LOWER COST THAN FLEET WOULD THE DISPUTE SHOWS HOW FUND DIRECTORS SOMETIMES KNOWN AS TRUSTEES ARE INCREASINGLY BEING PRESSED TO ENSURE THAT THE BEST INTEREST OF SHAREHOLDERS IS UPHELD ESPECIALLY IN MERGER DECISIONS GOVERNMENT REGULATORS RECENTLY HAVE URGED FUND BOARDS TO SCRUTINIZE THE ACTIONS OF INDIVIDUAL FUND MANAGERS MORE CAREFULLY I'M AFRAID THIS INDUSTRY HAS IMBUED DIRECTORS TO TAKE CARE OF THE ADVISER WHO APPOINTED THEM TO BE ON THE BOARD MR BOGLE SAYS EVEN THE INDEPENDENT DIRECTORS THOSE WHO DON'T HAVE A DIRECT TIE TO THE PARENT COMPANY FEEL SOME KIND OF OBLIGATION TO THE ADVISER TO GO DOWN THE PATH LESS TRAVELED IS AWFULLY HARD FOR A FUND DIRECTOR IBM STARTED OFFERING THE FUNDS IN 1990 AS A BENEFIT TO EMPLOYEES TO HELP THEM INVEST FOR RETIREMENT THE FIVE ARE INDEX FUNDS MEANT TO TRACK THE PERFORMANCE OF VARIOUS FINANCIAL BENCHMARKS SUCH AS THE STANDARD & POOR'S 500 INDEX SUCH FUNDS HAVE BECOME POPULAR BECAUSE THEY ARE RELATIVELY INEXPENSIVE TO MANAGE AND HAVE SHOWN DECENT RESULTS COMPARED WITH FUNDS MANAGED BY STOCK PICKERS SELLING THE MUTUAL FUNDS IS PART OF IBM'S CURRENT EFFORT TO SHED OPERATIONS THAT DON'T RELATE TO ITS CORE TECHNOLOGY BUSINESSES LOU GERSTNER MIGHT BE HAPPY WITH THE DECISION SAYS MR BOGLE BUT THE QUESTION IS WHAT IS THE BEST VALUE FOR THE FUND SHAREHOLDERS EVEN THOUGH IT WILL RECEIVE PROFITS FROM THE SALE TECHNICALLY IBM OF ARMONK NY DOESN'T OWN ITS MUTUAL FUNDS FUND SHAREHOLDERS DO LIKE OTHER FUND ADVISERS IBM OWNS ONLY THE COMPANY THAT EMPLOYS THE FUND MANAGERS MUTUALFUND TRUSTEES CAN SWITCH FROM ONE ADVISER TO ANOTHER AND THE FIDUCIARY DUTY OF THE FUNDS' BOARDS ISN'T TO THE ADVISER BUT TO THE SHAREHOLDERS OF THE FUNDS SAYS WOODROW CAMPBELL A LAWYER AT DEBEVOISE & PLIMPTON IN NEW YORK AFTER WEIGHING ALL THE CONSIDERATIONS IT IS THE FIDUCIARY RESPONSIBILITY OF THE DIRECTORS TO PICK THE BEST OPTIONS FOR THE SHAREHOLDERS MR CAMPBELL SAYS IBM'S FUND GROUP HAS THREE OUTSIDE DIRECTORS AND ONE INSIDE DIRECTOR WHEN CONTACTED FOR COMMENT OUTSIDE DIRECTOR BRADFORD MORSE A FORMER MEMBER OF THE US HOUSE OF REPRESENTATIVES SAID IN MY BEST JUDGMENT THE RIGHT DECISION WAS MADE AND THE OTHER OUTSIDE DIRECTORS SHARE THAT OPINION OUTSIDE DIRECTOR WILLIAM SCHRENK A RETIRED LAWYER WHO SERVES AS A CONSULTING ATTORNEY TO THE NATURAL RESOURCES DEFENSE COUNCIL DECLINED TO COMMENT OUTSIDE DIRECTOR MICHAEL TUSHMAN A PROFESSOR AT COLUMBIA UNIVERSITY'S GRADUATE SCHOOL OF BUSINESS SAID I DON'T KNOW ANYTHING AND HUNG UP THE PHONE BUT THE MUTUALFUND SHAREHOLDERS WILL HAVE THE LAST SAY LAST WEEK PROXY MATERIAL RECOMMENDING THE FLEET ACQUISITION WAS MAILED TO IBM MUTUALFUNDS HOLDERS THE TRUSTEES OF THE IBM FUNDS RECOMMEND THE PURCHASE OF IBM CREDIT INVESTMENT MANAGEMENT CORP A SUBSIDIARY OF IBM CREDIT CORP BY A FLEET BANK UNIT UNDER THE PROPOSED NAME OF GALAXY FUND II THE IBM LARGE COMPANY INDEX FUND IBM SMALL COMPANY INDEX FUND IBM US TREASURY INDEX FUND AND IBM UTILITY INDEX FUND WOULD BE MANAGED BY THE FLEET UNIT WITH ANNUAL EXPENSES OF 040 OF FUND ASSETS THE IBM MUNICIPAL BOND FUND WOULD HAVE A 060 EXPENSE RATE VANGUARD SAYS IT PROPOSED TO RUN THE FUNDS WITH FEES OF ABOUT HALF THOSE COSTS AMONG THE FLEET SERVICES THAT APPEALED TO THE DIRECTORS IS A WAIVER OF THE 10 ANNUAL MAINTENANCE FEE FOR AT LEAST THE FIRST TWO YEARS MR BRAUN SAYS THE INITIAL INVESTMENT MINIMUM WILL BE KEPT AT 50 AND TELEPHONE SWITCHING WILL BE CONVENIENT AS IT IS NOW INVESTORS IN THE IBM MONEY MARKET ACCOUNT WILL BE INVITED TO CONSIDER VARIOUS INVESTMENT OPTIONS FROM FLEET 9404260089 940426 WHO'S NEWS SALOMON BEEFS UP ITS RISK MANAGEMENT BY HIRING MORGAN STANLEY'S BOOKSTABER BY BARBARA DONNELLY GRANITO STAFF REPORTER OF THE WALL STREET JOURNAL SALOMON INC ANTICIPATING INCREASED REGULATORY SUPERVISION OF WALL STREET'S DERIVATIVES AND PROPRIETARY TRADING ACTIVITIES IS BEEFING UP ITS RISKMANAGEMENT TEAM WITH A HIGHPROFILE HIRE FROM MORGAN STANLEY GROUP INC RICHARD BOOKSTABER 43 YEARS OLD A FORMER MORGAN STANLEY PRINCIPAL IN CHARGE OF MANAGING MARKET RISK JOINS SALOMON AS HEAD OF GLOBAL RISK MANAGEMENT BASICALLY MY JOB IS TO MAKE SURE EVERYONE'S NOT ON THE SAME SIDE OF THE BOAT AT THE SAME TIME AND THAT SALOMON'S CAPITAL IS BEING USED EFFICIENTLY ON A RISKADJUSTED BASIS MR BOOKSTABER SAYS MR BOOKSTABER WHO'S ALSO A FORMER PROFESSOR OF FINANCE AT BRIGHAM YOUNG UNIVERSITY DID PROPRIETARY TRADING AT MORGAN STANLEY FROM 1990 TO 1993 PRIOR TO JOINING THE FIRM'S RISKMANAGEMENT EFFORT HIS MOVE TO SALOMON COMES AT A TIME WHEN WALL STREET SECURITIES HOUSES ARE TRYING TO ANTICIPATE TOUGHER EXAMINATIONS AND RULES ON THE DISCLOSURE OF DERIVATIVES AND OTHER TRADING ACTIVITIES BY THE SECURITIES AND EXCHANGE COMMISSION DERIVATIVES ARE FINANCIAL AGREEMENTS WHOSE VALUE IS LINKED TO OR DERIVED FROM THE PERFORMANCE OF SOME UNDERLYING ASSET SUCH AS BONDS CURRENCIES OR COMMODITIES WE ARE APPROACHING THE DAY WHEN REGULATORS IN ADDITION TO JUST REVIEWING SECURITIES RULES WILL LOOK TO REVIEW THE QUALITY OF RISKMANAGEMENT SYSTEMS AND PROCESSES SAYS JEROME BAILEY FORMER CONTROLLER AT MORGAN STANLEY WHO JOINED SALOMON AS CHIEF FINANCIAL OFFICER LAST YEAR WE WANT TO BE AHEAD OF THOSE DEVELOPMENTS HE SAYS RISK MANAGEMENT ESPECIALLY CONTROLLING EXPOSURE TO GLOBAL MARKET RISK IS AN EXTRAORDINARILY CRITICAL ROLE FOR SALOMON GIVEN THE IMPORTANCE OF LONGTERM PROPRIETARY TRADING TO THE FIRM'S BOTTOM LINE ADDS MR BAILEY SALOMON HAS ROUGHLY 35 WORTH OF EXPOSURE TO WORLD STOCKS BONDS AND OTHER ASSETS FOR EVERY 1 OF EQUITY CAPITALROUGHLY 40 MORE LEVERAGE THAN RIVALS SUCH AS MORGAN STANLEY AND BECAUSE DERIVATIVES ALLOW FIRMS TO TAKE LARGE POSITIONS WITH LITTLE OR NO MONEY CHANGING HANDS THEY CAN GREATLY INCREASE A FIRM'S LEVERAGE AS WELL AS ITS RISK AS PART OF ITS RISKMANAGEMENT INITIATIVE SALOMON HAS RECENTLY BEGUN TO ADJUST THE WAY IT ASSIGNS CAPITAL COSTS TO ITS VARIOUS TRADING UNITS TO TAKE ACCOUNT OF THEIR EXPOSURE TO MARKET CREDIT AND OTHER RISKS THIS APPROACH WHICH HAS BEEN COMMON PRACTICE AT BIG COMMERCIAL BANKS FOR SOME TIME IS ONLY NOW BEING ADOPTED BY MOST MAJOR SECURITIES FIRMS THE EFFORT TO BEEF UP RISK MANAGEMENT ALSO REFLECTS THE DETERMINATION OF DERYCK MAUGHAN SALOMON'S CHIEF EXECUTIVE OFFICER TO STRENGTHEN MANAGEMENT ACCOUNTABILITY AND CONTROL IN THE WAKE OF THE 1991 TREASURY BIDDING SCANDAL FOR INSTANCE UNLIKE MANY WALL STREET CEOS MR MAUGHAN HIMSELF SITS ON THE FIRM'S RISKMANAGEMENT COMMITTEE OTHER MEMBERS INCLUDE MR BAILEY AND MR BOOKSTABER AS WELL AS THE HEADS OF LONGTERM PROPRIETARY TRADING AND THE VARIOUS TRADING UNITS 9404260088 940426 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 AMERICAN BANKERS INSURANCE GROUP INC 75 MILLION OF MEDIUMTERM NOTES DUE MAY 3 1999 PRICED AT PAR TO YIELD 76 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 105 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 PAINEWEBBER INC AMERITECH CAPITAL FUNDING CORP 225 MILLION OF FLOATINGRATE NOTES DUE MAY 2 1997 PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WILL FLOAT AND PAY QUARTERLY AT THE THREEMONTH LONDON INTERBANK OFFERED RATE RATED DOUBLEA2 BY MOODY'S AND DOUBLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO AMERITECH IS A UNIT OF AMERITECH CORP CIT GROUP HOLDING INC 150 MILLION OF MEDIUMTERM FLOATINGRATE NOTES DUE MAY 2 1997 PRICED AT PAR ACCORDING TO A CIT OFFICIAL THE NONCALLABLE ISSUE RESETS WEEKLY AND PAYS SEMIANNUALLY AT A SPREAD OF 20 BASIS POINTS ABOVE SIXMONTH TREASURY BILLS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY UBS SECURITIES INC CIT IS AFFILIATED WITH CHEMICAL BANKING CORP AND DAIICHI KANGYO BANK FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF 10YEAR CALLABLE DEBENTURES TO BE ISSUED FRIDAY TO YIELD 7686 ACCORDING TO FANNIE MAE THE 10YEAR DEBENTURES WERE PRICED THROUGH FANNIE MAE AT 9975 WITH A 765 COUPON THE 10YEAR DEBENTURES ARE CALLABLE APRIL 29 1997 GREYHOUND FINANCIAL CORP 100 MILLION OF FLOATINGRATE NOTES PRICED AT PAR THROUGH LEAD MANAGER MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE DUE APRIL 29 1997 WILL FLOAT AND PAY QUARTERLY AT 37 BASIS POINTS ABOVE THE THREEMONTH LIBOR THE ISSUE IS RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P GREYHOUND FINANCIAL IS A UNIT OF GFC FINANCIAL CORP PEPSICO INC 100 MILLION OF FLOATINGRATE NOTES DUE APRIL 28 1995 PRICED AT PAR THE NONCALLABLE ISSUE FLOATS DAILY AND WILL PAY QUARTERLY AT 21 BASIS POINTS ABOVE THE FEDERALFUNDS RATE RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC AEROBOTICS INC INITIAL OFFERING OF 200000 TO 15 MILLION COMMON SHARES PRICED AT 5 EACH THROUGH EXCLUSIVE SELLING AGENT SB CANTOR & CO AEROBOTICS IS A SUBSIDIARY OF MOLLER INTERNATIONAL SUPERTEL HOSPITALITY INC INITIAL OFFERING OF 16 MILLION COMMON SHARES PRICED AT 10 EACH THROUGH UNDERWRITERS LED BY CHICAGO CORP AND KIRKPATRICK PETTIS LANDESBANK SCHLESWIGHOLSTEIN LUXEMBOURG GERMAN PARENT 150 MILLION CANADIAN DOLLARS OF 7375 EUROBONDS DUE MAY 20 1996 AT ISSUE PRICE 100949 VIA NOMURA INTERNATIONAL PLC REOFFERED AT 99949 TO YIELD 74 A SPREAD OF 22 BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT BOND FEES 1125 TORONTO CANADIAN MUNICIPALITY C165 MILLION OF 85 EUROBONDS DUE MAY 26 2004 AT ISSUE PRICE 100375 VIA SCOTIAMCLEOD INC REOFFERED AT 9875 TO YIELD 869 A SPREAD OF 45 BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT BOND FEES TWO SHARP INTERNATIONAL FINANCE UK PLC JAPANESE PARENT 47 BILLION YEN OF FLOATINGRATE EURONOTES DUE FEBRUARY 1998 AT ISSUE PRICE 1015 VIA SANWA INTERNATIONAL PLC ANNUAL COUPON 35 UNTIL AUG 3 1997 THEREAFTER INTEREST FLOATS AT 025 ABOVE THREEMONTH LIBOR FOR YEN KEEPWELL AGREEMENT WITH SHARP CORP FEES 15 9404260087 940426 DUPONT PROFIT INCREASED 30 IN 1ST QUARTER RISE PUSHES STOCK UP 64 GROWTH OF ECONOMY AND COSTCUTTING CITED BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DUPONT CO SAID ITS FIRSTQUARTER EARNINGS ROSE A STRONGERTHANEXPECTED 30 IN ANOTHER SIGN THAT THE CYCLICAL CHEMICAL INDUSTRY CONTINUES TO BENEFIT FROM THE ECONOMY'S RAPID GROWTH DUPONT'S NET SURGED TO 642 MILLION OR 94 CENTS A SHARE FROM 493 MILLION OR 73 CENTS A SHARE A YEAR EARLIER THE COMPARISON IS EVEN MORE POSITIVE ON AN OPERATING BASIS BECAUSE THE YEARAGO NET BENEFITED FROM A 32 MILLION AFTERTAX GAIN AT THE COMPANY'S CONOCO ENERGY UNIT THE IMPROVEMENT CAME ON A SLIM 13 INCREASE IN SALES TO 919 BILLION FROM 907 BILLION THE LATEST QUARTER'S EARNINGS SIGNIFICANTLY TOPPED THE ESTIMATED 75 CENTS A SHARE MOST ANALYSTS HAD BEEN EXPECTING DUPONT STOCK A COMPONENT OF THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 350 A SHARE OR 64 TO 58125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING HELPING TO PROPEL THE INDUSTRIAL AVERAGE TO A GAIN OF 5710 POINTS DUPONT'S TRADING VOLUME WAS HEAVY AT ALMOST 27 MILLION SHARES GOLDMAN SACHS & CO ANALYST AVI NASH SAID THAT AFTER A LONG LAG THE COSTCUTTING EFFORT IS STARTING TO PAY DIVIDENDS FOR DUPONT AND CHRISTOPHER WILLIS OF WERTHEIM SCHRODER SIMILARLY CITED THE COMPANY'S EXCEPTIONAL SUCCESS WITH COSTCUTTING AS A MAJOR FACTOR IN DUPONT'S EARNINGS SURPRISE STILL THE COMPANY'S EARNINGS PROVIDE FURTHER PROOF THAT THE LONGDEPRESSED CHEMICAL SECTOR'S RECOVERY IS PROCEEDING FASTER THAN MANY OBSERVERS HAD EXPECTED THE LATEST PERIOD'S RESULTS FOR DUPONT AND SEVERAL OTHER BIG PLAYERS IN THE ECONOMICALLY SENSITIVE CHEMICAL INDUSTRY REFLECT INCREASED VOLUME BUT NO SIGNIFICANT IMPROVEMENT IN DEPRESSED PRICES UNION CARBIDE CORP ROHM & HAAS CO AND MONSANTO CO ARE AMONG THE BIG CHEMICAL MAKERS WHO HAVE REPORTED HIGHERTHANANTICIPATED EARNINGS AND GOLDMAN'S MR NASH SAID INDUSTRY VOLUMES HAVE BEEN ABOVE EXPECTATIONS PARTLY BECAUSE OF BETTER ECONOMIC GROWTH GLOBALLY AND PARTLY BECAUSE OF LEAN INVENTORY IN THE SYSTEM TO BEGIN WITH EARNINGS AT DUPONT'S CHEMICALS SEGMENT ROSE 20 TO 83 MILLION DESPITE A 13 DECLINE IN SALES TO 848 MILLION THE COMPANY'S FIBERS SEGMENT SAW OPERATING EARNINGS JUMP 41 TO 144 MILLION ON SALES THAT ROSE 14 TO 165 BILLION THE FIBERS GROUP'S RESULTS REFLECT IMPROVED MARKETS FOR DUPONT'S NYLON AND LYCRA SPANDEX LINES ALTHOUGH EARNINGS WEAKENED FOR ITS DACRON POLYESTER BUSINESS SURGING SALES TO AUTO MAKERS HELPED BOOST DUPONT'S POLYMERS SEGMENT BY 91 TO 147 MILLION ON SALES THAT ROSE JUST 15 TO 148 BILLION DUPONT'S CONOCO UNIT OVERCAME SUBSTANTIALLY LOWER OIL PRICES THROUGH A BIGGERTHANEXPECTED INCREASE IN OIL AND NATURAL GAS PRODUCTION AS WELL AS THROUGH HIGHER PRICES FOR NATURAL GAS AND HIGHER PROFIT MARGINS ON REFINED PRODUCTS IT WAS THE CONOCO UNIT'S REDUCED FIXED COSTS THAT STOOD OUT FOR A NUMBER OF ANALYSTS THE COMPANY'S RESTRUCTURING EFFORTS ARE HAVING A SIGNIFICANT POSITIVE IMPACT ON OUR BOTTOMLINE PERFORMANCE SAID EDGAR S WOOLARD JR DUPONT'S CHIEF EXECUTIVE OFFICER HE CALLED THE IMPROVED PERFORMANCE A SOLID INDICATION THAT OUR STRATEGIES ARE PROVIDING THE ABILITY FOR US TO IMPROVE EVEN IF OVERALL ECONOMIC CONDITIONS ARE NOT IN OUR FAVOR HE STRESSED THAT NOT ONLY IS DEMAND GENERALLY IMPROVED IN THE UNITED STATES BUT MARKET CONDITIONS ARE BETTER IN EUROPE AND ASIA AS WELL THE RESULTS ARE DUPONT'S BEST SINCE THE 1990 SECOND QUARTER THE CHEMICAL INDUSTRY'S LONG DOWNTURN IS THOUGHT TO HAVE HIT BOTTOM LATE LAST YEAR AND THE BUSINESS IS EXPECTED TO HAVE BEGUN A SLOW RECOVERY IN WHICH YEARTOYEAR EARNINGS COMPARISONS WILL BE FAVORABLE FOR SOME TIME 9404260085 940426 REVIEW & OUTLOOK EDITORIAL SPENDING FROM A TO Z CONGRESS'S DEMOCRATIC LEADERSHIP CAN'T TALK ENOUGH ABOUT THEIR PLANS TO REFORM HEALTH CARE CHANGE CAMPAIGN FINANCE LAW AND DEBATE WELFARE BUT THERE'S ONE ISSUE THEY AREN'T MUCH INTERESTED IN DISCOVERING THE HOUSE MEMBERSHIP'S SPENDING PRIORITIES LAST WEEK THE LEADERSHIP WENT INTO OVERDRIVE TO CRUSH A BIPARTISAN EFFORT TO HOLD A SPECIAL SESSION SOLELY TO DEBATE FEDERAL SPENDING IT'S KNOWN AS THE A TO Z SPENDING CUTS PLAN THE A TO Z PLAN WOULD ALLOW HOUSE MEMBERS JUST ONCE TO BYPASS POWERFUL SPENDINGADDICTED COMMITTEE CHAIRMEN AND PROPOSE SPECIFIC REDUCTIONS IN FEDERAL SPENDING A MINIMUM OF 56 HOURS WOULD BE SET ASIDE TO DEBATE WHICH FEDERAL PROGRAMS 1200 OF THEM SHOULD BE ABOLISHED CUT BACK OR RESTRUCTURED EVERY PROPOSAL WOULD GET A RECORDED VOTE SO VOTERS COULD GET A LOOK AT THE MEMBERS' PRIORITIES A TO Z IS THE BRAINCHILD OF REP ROB ANDREWS A NEW JERSEY DEMOCRAT AND REP BILL ZELIFF A NEW HAMPSHIRE REPUBLICAN THEY SAY THEIR UNUSUAL PROCEDURE IS NECESSARY BECAUSE HOUSE LEADERS HAVE DECISIONMAKING CENTRALIZED IN A HANDFUL OF MEMBERS THE DELIBERATIVE PROCESS BELONGS TO HISTORY UNDER THE CURRENT SYSTEM REP ZELIFF POINTS OUT THAT UNDER SPEAKER TIP O'NEILL ONLY 15 OF HOUSE BUSINESS WAS DONE UNDER A CLOSED RULE LIMITING DEBATE AND AMENDMENTS IN THIS CONGRESS 79 OF ALL BILLS HAVE OPERATED UNDER A CLOSED RULE HOUSE LEADERS ARE AGHAST AT THE PROSPECT OF ENTERTAINING THE A TO Z VOTES SPEAKER TOM FOLEY CURRENT LANDLORD OF THE CLOSEDRULE HOUSE CALLS IT PROBABLY THE MOST POORLY THOUGHT OUT PROPOSAL FOR THE CONSIDERATION OF PUBLIC POLICY THAT I'VE SEEN IN MANY YEARS MAYBE THE WORST ONE EVER THE A TO Z PLAN ALREADY HAS A MAJORITY OF 231 MEMBERS AS COSPONSORS BUT IT WILL DIE UNLESS A MAJORITY ALSO SIGN A DISCHARGE PETITION TO CIRCUMVENT THE RULES COMMITTEE AND FORCE A TO Z ONTO THE FLOOR LAST WEEK HOUSE LEADERS HELD A STRATEGY SESSION ON HOW TO CONVINCE COSPONSORS THEY SHOULDN'T SIGN THE DISCHARGE PETITION A VETERAN HOUSE DEMOCRAT TOLD THE NATIONAL JOURNAL THAT MR FOLEY SAID DEMOCRATS MIGHT SEE NEGATIVE CONSEQUENCES IF THEY SIGN SUCH AS DIFFICULTY IN GETTING ON KEY COMMITTEES SOME DEMOCRATS MAY ALREADY BE GETTING THE MESSAGE LAST WEEK FLORIDA REP PETE PETERSON TOOK TO THE HOUSE FLOOR AND ASKED TO REMOVE HIS NAME AS AN A TO Z COSPONSOR HIS OFFICE SAYS HE'S DECIDED THE BILL ISN'T PROPERLY WRITTEN AND SHOULD FOCUS SOLELY ON ENTITLEMENT SPENDING OTHER MEMBERS NOTE THAT REP PETERSON SERVES ON THE APPROPRIATIONS COMMITTEE KNOWN AS THE HOUSE'S FAVOR FACTORY AND ITS NEW CHAIRMAN DAVID OBEY HAS VOWED TO KILL A TO Z IN FACT CHAIRMAN OBEY HAS ALREADY DISTRIBUTED LISTS OF A TO Z COSPONSORS WHO HAVE A STAKE IN PROGRAMS THAT MIGHT BE VULNERABLE IN A BUDGETCUTTING SESSION DESPITE THE ARMTWISTING REPS ANDREWS AND ZELIFF SAY A TO Z CAN BECOME REALITY ESPECIALLY IN AN ELECTION YEAR REP ANDREWS NOTES THAT A GRASSROOTS REVOLT LAST YEAR AGAINST SECRET DISCHARGE PETITIONS FORCED THE HOUSE TO ABANDON THE PRACTICE AFTER 62 YEARS IF PEOPLE DEMAND ACCOUNTABILITY FROM CONGRESS THEY CAN GET IT HE TOLD US A TO Z IS A MODEST ATTEMPT TO INVOLVE NEWER HOUSE MEMBERS IN THE FEDERAL BUDGET PROCESS INCREASINGLY THESE MEMBERS REPRESENT SUBURBAN CONSTITUENCIES THEIR VOTING RECORDS SUGGEST A GREATER SENSITIVITY TO THEIR CONSTITUENTS' GROWING IMPATIENCE WITH BLOATED SPENDING BY CONTRAST LONGTIME COMMITTEE CHAIRMEN ARE GENERALLY HABITUATED TO THE SPENDANDSPEND CYCLE THE NEWER MEMBERS OUGHT TO BE GIVEN A CHANCE TO TRY TO REFLECT THE POLITICS OF THEIR DIVERSE CONSTITUENTS BY VOTING ON EVERYTHING FROM A TO Z 9404260084 940426 REVIEW & OUTLOOK EDITORIAL BOMBING DEFENSE AT THE OUTSET OF FORMER DEFENSE SECRETARY LES ASPIN'S BOTTOMUP REVIEW OF US MILITARY READINESS WE WERE TOLD HOW THE PLAN WOULD PROVIDE FOR A LEAN MOBILE HIGHTECH FORCE MILITARY LEADERS ARE STARTING TO LEARN JUST WHAT THE FORMER DEFENSE SECRETARY MEANT THAT LEAN FORCE IS STARTING TO LEAN TOWARD THE ANOREXIC IN SOME AREAS AIR FORCE CHIEF OF STAFF GEN MERRILL MCPEAK PUT IT SUCCINCTLY IN TESTIMONY BEFORE CONGRESS LAST MONTH WHEN HE SAID THE BOTTOMUP FORCE IS AN ABSTRACTION THE BUDGET IS A REALITY THE RESULT US READINESS AND RESPONSE IS BECOMING A SUBJECT FOR LEGITIMATE DEBATE AS THE CLINTON ADMINISTRATION CONTINUES TO RATCHET DOWN DEFENSE SPENDING THE LATEST CASUALTY IS THE AIR FORCE'S HEAVYBOMBER FORCE CURRENTLY AT 211 THE BOTTOMUP REVIEW INITIALLY CALLED FOR IT TO BE REDUCED TO 184 BY 1999 THAT NUMBER WAS LATER CUT TO ABOUT 150 NOW BECAUSE OF FISCAL '95 SHORTFALLS THE CLINTON BUDGET CALLS FOR TEMPORARILY REDUCING THE HEAVYBOMBER FORCE TO 107 TO GET THE BOMBER FORCE DOWN TO 107 THE CLINTON PLAN CALLS FOR THE AIR FORCE TO TEMPORARILY SIDELINE 24 OF ITS 64 B52S AND 24 OF ITS 84 B1S THAT SUPPOSEDLY WOULD SAVE ABOUT 500 MILLION A YEAR THROUGH 1999 THEN UNDER THE CLINTON PLAN IN 1999 THESE SAME PLANES WOULD BE RETURNED TO SERVICE HAVING BEEN UPGRADED WITH PRECISIONGUIDED MUNITIONS CAPABILITY THE CATCH IS THAT WHILE CLAIMING THE 500 MILLION SAVINGS THE CLINTON FIVEYEAR DEFENSE PLAN DOESN'T PROVIDE FUNDING FOR THE UPGRADE IN RECENT HEARINGS BEFORE THE HOUSE DEFENSE APPROPRIATIONS SUBCOMMITTEE GEN JOHN M LOH HEAD OF THE AIR COMBAT COMMAND TESTIFIED THAT THE CLINTON NUMBERS FOR BOMBERS COME UP SHORT IF YOU ADD UP THOSE WE NEED FOR COMBAT OPERATIONS BOTH CONVENTIONAL AND NUCLEAR AND THOSE THAT WE NEED FOR TRAINING AND THOSE WE NEED IN DEPOT FOR REPAIRS AND TEST STATUS I COME UP WITH THE NEED FOR MORE THAN 107 HE SAID GEN LOH'S ASSESSMENT IS SUPPORTED BY A RAND CORP STUDY WHICH SAYS THAT UNDER THE PROPOSED CLINTON BUDGET THE US BOMBER FORCE COULD RESPOND TO ONLY ONE MAJOR REGIONAL CONFLICT AND IT WON'T BE ABLE TO DO THAT UNTIL 1999 WHEN IT'S BEEN UPGRADED WITH THE SMART WEAPONS THAT HAVE YET TO BE FUNDED MOREOVER THE RAND STUDY CONCLUDES THAT THE CLINTON BOMBER FORCE WOULD HAVE NO NUCLEAR CAPABILITIES AND ONLY A LIMITED ABILITY TO RESPOND TO A SECOND CONFLICT UNDER THE BOTTOMUP REVIEW US FORCES WERE SUPPOSED TO BE CAPABLE OF FIGHTING TWO NEARLY SIMULTANEOUS MULTIPLE REGIONAL CONFLICTS IN ADDITION TO THE B52S AND B1S THE RAND STUDY ALSO PROJECTS THAT THE AIR FORCE NEEDS AT LEAST 60 B2 BOMBERS COMPARED WITH A PROPOSED 20 UNDER THE CLINTON PLAN TO RESPOND TO THE TWOCONFLICT SCENARIO MEANWHILE BILL CLINTON PRESUMABLY PONDERS AIR STRIKES IN BOSNIA THE MERITS OF THAT ASIDE WE FEAR THAT IF THIS PRESIDENCY IS KNOWN TO BE UNINTERESTED IN FOREIGN POLICY ITS INTEREST IN THE DETAILS OF DEFENSE STRUCTURE PROBABLY FALL SOMEWHERE BELOW THAT PERHAPS SOMEONE IN WASHINGTON MAYBE EVEN THE REPUBLICANS OUGHT TO START PAYING ATTENTION 9404260083 940426 FED NOMINEE INFLATION'S FRIEND BY RICHARD M SALSMAN BY NOMINATING ALAN BLINDER AND JANET YELLEN TO FILL TWO VACANCIES ON THE FEDERAL RESERVE BOARD LAST WEEK PRESIDENT CLINTON MOVED TO PUT HIS DISTINCTIVE STAMP ON MONETARY POLICY MR BLINDER'S NOMINATION AS VICE CHAIRMAN OF THE FED IS ESPECIALLY TELLING IF IT'S A LEADING INDICATOR OF FUTURE FED APPOINTMENTS MARKETS SHOULD BRACE THEMSELVES MR BLINDER BELIEVES INFLATION IS A CUREALL FOR ECONOMIC ILLS AS A PRINCETON PROFESSOR NOW ON LEAVE FORMER BUSINESS WEEK COLUMNIST AND CURRENT MEMBER OF THE COUNCIL OF ECONOMIC ADVISERS HIS VIEWS ARE A MATTER OF PUBLIC RECORD HIS WRITINGS GIVE STRONG CLUES ABOUT HOW HE'LL VOTE MR BLINDER DIFFERS SHARPLY WITH THE HARDMONEY REAGAN APPOINTEES WHO BELIEVE THE FED'S MAIN GOAL IS PRICE STABILITY REAGANITES BELIEVE SOUND MONEY UNDERGIRDS ECONOMIC GROWTH MR BLINDER BELIEVES GROWTH AND EMPLOYMENT CAUSE INFLATION REAGANITES SEE COMMODITY PRICES AS THE BEST HARBINGER OF INFLATION MR BLINDER LOOKS AT WAGE TRENDS A TRAILING INDICATOR REAGANITES BLAME GOVERNMENT POLICY FOR INFLATION MR BLINDER BLAMES MARKETS AND ENDORSES WAGE AND PRICE CONTROLS A DYEDINTHEWOOL KEYNESIAN MR BLINDER EMBRACES THE VIEW THAT JOB GROWTH AND PRICE STABILITY CANNOT COINCIDE POLICY MAKERS OF THE 1990S HE WROTE IN BUSINESS WEEK IN NOVEMBER 1989 MUST NOW PRESUME THAT THE PHILLIPS CURVE TRADEOFF BETWEEN INFLATION AND UNEMPLOYMENT IS ALIVE AND WELL ESPECIALLY ILLUMINATING ON THIS POINT AND MANY OTHERS IS HIS 1987 BOOK HARD HEADS SOFT HEARTS FROM WHICH THE QUOTATIONS BELOW ARE TAKEN IF POLICY MAKERS TRY TO KEEP UNEMPLOYMENT FROM RISING BY MAINTAINING UNINTERRUPTED GROWTH IN REAL GNP HE WROTE THERE INFLATION WILL WORSEN IF INSTEAD THEY TRY TO HOLD INFLATION DOWN BY DELIBERATELY SLOWING THE ECONOMY UNEMPLOYMENT WILL SURGE UPWARD GOOD POLICY MEANS STRIKING A BALANCE BETWEEN INFLATION AND UNEMPLOYMENT GIVEN THIS DISMAL CHOICE MR BLINDER CLEARLY PREFERS JOBS A SELFDESCRIBED INFLATION DOVE HE SAYS THE HARM THAT INFLATION INFLICTS ON THE ECONOMY IS OFTEN EXAGGERATED WHILE ACHIEVING AND MAINTAINING LOW UNEMPLOYMENT IS PROBABLY THE MOST ESSENTIAL INGREDIENT OF A SOUND ECONOMIC POLICY GIVEN HIS DESIRE FOR A HEALTHY BALANCE BETWEEN UNEMPLOYMENT AND INFLATION MR BLINDER SHOULD BE IMPRESSED THAT BOTH FELL TOGETHER IN THE PAST DECADE BUT HE ISN'T IN THE 1980S HE COMPLAINS AMERICA STRUCK THIS BALANCE IN THE WRONG PLACE BY EXAGGERATING THE PERILS OF INFLATION AND UNDERESTIMATING THE VIRTUES OF LOW UNEMPLOYMENT EVEN THOUGH 20 MILLION JOBS WERE CREATED HE FEELS JOBS WERE SACRIFICED ON THE ALTAR OF PRICE STABILITY WORSE STILL MR BLINDER BLAMES THE REAGANITES FOR FAVORING THE RICH AT THE EXPENSE OF THE POOR BY LOWERING INFLATION CONQUERING INFLATION WAS THE MACROECONOMIC SUCCESS STORY OF THE 1980S HE SAYS BUT IT WAS A SUBTERFUGE FOR PROTECTING INFLATION'S REAL VICTIMS THE RICH HOW PRECISELY FOR MR BLINDER INFLATION IS INDEED A CRUEL TAX BUT ONLY IF YOUR INCOME COMES MOSTLY FROM INTEREST DIVIDENDS AND CAPITAL GAINS SO MUCH FOR SAVERS AND INVESTORS INFLATION HE CLAIMS MAKES INCOMES MORE EQUAL AND DOES NO SPECIAL HARM TO THE POOR IN EFFECT MR BLINDER DERIDES THE DISINFLATION OF THE 1980S BECAUSE SUPPOSEDLY IT HELPED INVESTORS MORE THAN WAGE EARNERS HE ASSUMES THE TWO ARE NECESSARILY DISTINCT OR AT ODDS MR BLINDER'S VIEWS REFLECT THE CLASSWARFARE APPROACH OF CLINTONOMICS HERE APPLIED TO MONETARY POLICY FINANCIAL MARKETS TAKE NOTE MR BLINDER KNOWS THAT VARIABLE RATES OF INFLATION CAN CAUSE SEVERE PROBLEMS BECAUSE THEY CAPRICIOUSLY CREATE AND DESTROY LARGE CHUNKS OF WEALTH THE BEST POLICY COUNSELS MR BLINDER IS A STEADY RATE OF INFLATION IF INFLATION PROCEEDED FROM YEAR TO YEAR AT A CONSTANT PREDICTABLE RATE HE ASKS WHAT HARM WOULD IT DO NONE HE SAYS PREDICTABLE INFLATION PREDICTABLY ERODES THE VALUE OF MONEY BUT DO FINANCIAL MARKETS FIND IT SO PREDICTABLE PERHAPS NOT BUT MR BLINDER CARES NOT HAS THERE EVER BEEN A SUSTAINED EPISODE OF STEADY AND PREDICTABLE INFLATION IN ONE BUSINESS WEEK COLUMN MR BLINDER RECOUNTS HOW THE INFLATION RATE HAS CHANGED IN EVERY YEAR BUT THREE IN THE PAST 42 YEARS SINCE MR BLINDER BELIEVES HIGHER INFLATION ACCOMPANIES TIGHTER LABOR MARKETS HE'LL PROBABLY CONSULT WAGE SETTLEMENTS AS A HARBINGER OF INFLATION HE HAS REJECTED THE GROWING EVIDENCE THAT COMMODITY PRICES DO A FAR BETTER JOB OF IT AS A CLINTON ADVISER HE CONTRIBUTED TO A RECENT STUDY THAT DISMISSED GOLD PRICES AS A LEADING INDICATOR OF OFFICIAL INFLATION MEASURES INDEED HE IS PROFOUNDLY SKEPTICAL THAT INFLATIONARY EXPECTATIONS CAN CHANGE ABRUPTLY AND FINDS NEITHER THEORETICAL NOR STATISTICAL SUPPORT FOR THE POPULAR NOTION THAT INFLATION HAS A BUILTIN TENDENCY TO ACCELERATE BUT HOW SHOULD POLICY MAKERS CONTROL INFLATION IF INDEED IT DOES ACCELERATE MR BLINDER RECOMMENDS WAGE AND PRICE CONTROLS SOME ECONOMISTS REJECT CONTROLS OUT OF HAND HE OBSERVES I AM NOT ONE OF THEM I THINK MOST AMERICANS WOULD LEARN TO LOVE CONTROLS IF THEY REALLY DID WHAT THEY ARE ALLEGED TO DO CONTROLS PROBABLY WILL NOT WORK WELL AND INTELLECTUAL ARGUMENTS IN FAVOR OF CONTROLS ARE SPECULATIVE AT BEST ROMANTIC AT WORST BUT IF THE GOVERNMENT SETS STANDARDS FOR PERMISSIBLE INCREASES IN WAGES AND PRICES MR BLINDER BELIEVES CONTROLS CAN HAVE SALUTARY EFFECTS AFTER ALL CONTROLS HELD DOWN INFLATION FOR A WHILE IN THE 1970S UNFORTUNATELY JANET YELLEN'S VIEWS ARE NOT MUCH BETTER THAN THIS IN A 1988 PAPER FOR BROOKINGS SHE WROTE OF THE BENEFITS OF RUNNING A HIGHPRESSURE ECONOMY HER EUPHEMISM FOR ONE WITH HIGH INFLATION AND SHE INSISTED THAT COUNTRIES WITH HIGH INFLATION ARE THOSE WITH MORE OF A TASTE FOR HIGH EMPLOYMENT AS IF INFLATION CAN CREATE JOBS AN UNINTENDED POSITIVE ASPECT TO MR BLINDER'S MONETARY VIEWS IS THAT HE'D LIKELY VOTE AGAINST THE FED HIKING SHORTTERM INTEREST RATES HE PRAISED THE GREENSPAN FED IN HIS BUSINESS WEEK COLUMNS LARGELY BECAUSE IT PRESIDED OVER FALLING INTEREST RATES EVEN SO IN A 1991 COLUMN HE ARGUED THAT MR GREENSPAN'S LOWERING OF RATES TO 4 IN 1991 FROM 9 IN 1989 WASN'T ENOUGH THAT WE HAVE A LONG WAY TO GO BEFORE THE FEDERAL FUNDS RATE HITS ZERO WHILE MR BLINDER HOLDS TO THE MYTH THAT HIKES IN INTEREST RATES FIGHT INFLATION BY STUNTING JOB GROWTH HE CLEARLY PREFERS JOBS TO INFLATION HIS LIKELY STANCE ON RATES IS HELPFUL TO THE ECONOMY BECAUSE HIGHER INTEREST RATES DON'T IN FACT FIGHT INFLATION THEY REFLECT IT MARKETS TODAY ARE GRAPPLING WITH THE QUESTION OF WHETHER INFLATION IS DEAD PREEMPTED OR HEADED HIGHER WHY DO MR BLINDER'S VIEWS MATTER BECAUSE IN THE ABSENCE OF OBJECTIVE RULES PERCEPTIONS ABOUT TILTS IN FED POLICY BECOME ALLIMPORTANT MR BLINDER SHIFTS THE ODDS TOWARD HIGHER INFLATION IF HIS VIEWS ARE ONES THE PRESIDENT FINDS AGREEABLE WE'RE HEADING BACK TO A JIMMY CARTERSTYLE FED MR SALSMAN IS AN ECONOMIST WITH HC WAINWRIGHT & CO ECONOMICS IN BOSTON 9404260082 940426 FREE TO PRAY LAST WEEK A MISSISSIPPI JUDGE STRUCK A BLOW FOR PRAYER IN THE SCHOOLS WHEN HE REINSTATED SCHOOL PRINCIPAL BISHOP KNOX WHO HAD BEEN SUSPENDED FOR ALLOWING A STUDENT TO READ A PRAYER OVER THE SCHOOL'S PUBLICADDRESS SYSTEM BELOW EXCERPTS FROM THE OPINION BY JUDGE CHET DILLARD OF THE HINDS COUNTY CHANCERY COURT IN JACKSON MISS THIS CASE INVOLVES OUR MOST TREASURED FREEDOMS CONCERNING OUR SCHOOLCHILDREN OUR CONSTITUTION AND OUR RELIGION THEREFORE A SHORT REFERENCE TO CONSTITUTIONAL HISTORY IS APPROPRIATE THE SACRED RIGHTS OF MANKIND ARE NOT TO BE RUMMAGED FOR AMONG PARCHMENTS OR MUSTY RECORDS THEY ARE WRITTEN AS WITH A SUN BEAM IN THE WHOLE VOLUME OF HUMAN NATURE BY THE HAND OF THE DIVINITY ITSELF AND CAN NEVER BE ERASED OR OBSCURED BY MORTAL POWER IN THE BEGINNING ALEXANDER HAMILTON SO EXPRESSED HIS VIEWS ON THE VALUE OF CONSTITUTIONAL RIGHTS WE HAVE COMPLETELY MISSED THE MAIN OBJECTIVE OF THE FOUNDING FATHERS OF OUR COUNTRY WHEN WE REACH THE POINT WHERE WE CONSTRUE OUR CONSTITUTION TO ALLOW STUDENTS TO HAVE ABORTIONS YET FORBID THEM TO PRAY IN OUR SCHOOLS THE CONSTITUTION WAS DESIGNED TO PRESERVE A WHOLESOME REGULATED ORDERLY MORAL WAY OF LIFE IT WAS NOT TO DESTROY THE VERY WAY OF LIFE OUR FOREFATHERS LOVED ENJOYED AND WANTED TO GUARANTEE FOR FUTURE GENERATIONS WHEN IT WAS ADOPTED SINCE THE RATIFICATION OF THE BILL OF RIGHTS IN 1791 BY THE STATES UNTIL RECENT TIMES ABORTION WAS A CRIMINAL ACT MOST ALL STATES HAD A DEATH PENALTY FOR MURDER AND PRAYER WAS THE BEGINNING AND END OF NEARLY EVERY HONORABLE ENDEAVOR IN JUST A RELATIVELY FEW YEARS BEGINNING IN THE '60S IT HAS BECOME A CONSTITUTIONAL RIGHT TO HAVE AN ABORTION AVOID THE DEATH PENALTY FOR AT LEAST 10 YEARS BUT UNCONSTITUTIONAL TO PRAY IN SCHOOL EXCEPT UNDER VERY LIMITED CIRCUMSTANCES THERE IS A VALID ARGUMENT BEING MADE THAT THE ATTEMPT TO PREVENT THE FREEDOM TO OFFER PRAYER IN SCHOOL HAS LED TO THE LOSS OF MORAL VALUES IN PUBLIC EDUCATION THIS SEEMS TO BE TRUE AS REFLECTED BY THE VIOLENCE LACK OF RESPECT FOR AUTHORITY AND CRIMINAL ACTS SUCH AS CARRYING CONCEALED WEAPONS ASSAULTS DRUG TRAFFIC AND EVEN MURDER ALL CITIZENS OF THIS COUNTRY SHOULD BE CONCERNED ENOUGH TO HELP PREVENT WHAT HAPPENED TO RELIGION IN THE SOVIET UNION THIS WAS BROUGHT ABOUT BY THE COURTS' INTERPRETATION OF THEIR CONSTITUTION THAT IS THE REASON WE MUST GIVE AS MUCH WEIGHT TO THE FREE EXERCISE CLAUSE AS WE DO THE ESTABLISHMENT CLAUSE THEY MUST BALANCE 9404260081 940426 TECHNOLOGY & HEALTH AT&T PROPOSES FIBEROPTICS AFRICAN SYSTEM BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AT&T CORP PROPOSED A BILLIONDOLLAR PLAN FOR CONNECTING AFRICA WITH HIGHTECH COMMUNICATIONS AND IMPROVING SERVICE FOR MILLIONS OF CUSTOMERS AT&T'S CONCEPT WHICH WOULD NEED INTERNATIONAL APPROVAL AND FUNDING INVOLVES BUILDING A 20000MILE FIBEROPTIC RING AROUND THE AFRICAN CONTINENT BY THE END OF 1997 OR EARLY 1998 AFRICAN COUNTRIES COULD THEN TAP INTO THIS COMMON RING WHICH WOULD BE CONNECTED TO OTHER NETWORKS WORLDWIDE THESE NATIONS WOULD ALSO OWN AND OPERATE THE NEW SYSTEM AT&T'S PROPOSAL MADE BEFORE AN INDUSTRY CONFERENCE YESTERDAY IN CAIRO ISN'T THE FIRST AIMED AT IMPROVING AFRICAN COMMUNICATIONS BUT IT MAY EXCEED RIVAL PLANS IN SCOPE DUBBED AFRICA ONE IT WOULD AMOUNT TO MORE THAN 1/10TH OF THE TOTAL FIBEROPTIC CABLE SYSTEMS LAID BY AT&T CABLE SHIPS IN THE LAST 30 YEARS THE NETWORK WHICH AT&T WOULD EQUIP WOULD HAVE 30 LANDING POINTS IN AFRICAN COUNTRIES WITH A COASTLINE INTERIOR NATIONS WOULD BE LINKED TO THE NETWORK VIA SATELLITE MICROWAVE RADIO CELLULAR AND OTHER TERRESTRIAL SYSTEMS AT&T SAID BY CONTRAST A NYNEX CORPLED CONSORTIUM CALLED FIBEROPTIC LINK AROUND THE GLOBE OR FLAG WOULD CONNECT THE AFRICAN CONTINENT AT A SINGLE LOCATION WITH A CABLE THAT RUNS FROM THE UNITED KINGDOM TO JAPAN AND AT&T'S FRENCH EQUIPMENT RIVAL ALCATELALSTHOM SA IS PROPOSING TO RUN A CABLE UNDER THE MEDITERRANEAN SEA TO CERTAIN COUNTRIES IN AFRICA AND LINK THE CONTINENT WITH EUROPE STILL LIKE OTHER INFORMATIONHIGHWAY PROPOSALS AT&T'S DEPENDS ON NUMEROUS FACTORS BEYOND ITS CONTROL THE BIGGEST HOW TO PAY FOR SUCH A SYSTEM WILLIAM B CARTER PRESIDENT OF AT&T SUBMARINE SYSTEMS INC TOLD CONFERENCE ATTENDEES THAT THE SYSTEM WOULD PROBABLY COST BETWEEN 1 BILLION AND 15 BILLION HE NOTED THAT THE WORLD BANK AND AFRICAN DEVELOPMENT BANK COULD FUND THE PROJECT BUT DIDN'T SAY WHETHER AT&T HAD CONTACTED ANY INTERNATIONAL LENDERS ABOUT ITS PROPOSAL A WORLD BANK SPOKESMAN IN WASHINGTON WOULDN'T COMMENT SPECIFICALLY ON AT&T'S PROPOSAL BUT SAID THE BANK WOULD FINANCE SUCH A PROJECT IF IT WERE PRESENTED BY THE GOVERNMENTS IN THE REGION HOWEVER THE POLITICAL TURMOIL AND VIOLENCE ROCKING MUCH OF THE CONTINENT COULD CUT THE CABLE PROJECT EVEN IF THAT WERE NOT A FACTOR GETTING THE CABLE'S AFRICAN OWNERS TO AGREE ON HOW TO MOUNT SUCH A PROJECT WOULD BE AN ARDUOUS TASK THIS IS NOT A PIPE DREAM AN AT&T SPOKESMAN SAID BUT A FINANCIAL NECESSITY HE NOTED THAT AFRICAN COMMUNICATIONS TRAFFIC HAS BEEN GROWING AN AVERAGE 12 TO 15 ANNUALLY WITH 2049 MILLION MINUTES OF CALLS MADE TO AFRICA FROM JUST THE US IN 1992 ACCOUNTING FOR 3043 MILLION IN US REVENUE THAT YEAR THERE ARE IMPROVEMENTS TO BE MADE IN AFRICA HE SAID AND MULTINATIONAL COMPANIES THAT WANT TO DO BUSINESS THERE WANT MORE RELIABLE INTERNATIONAL LINKS INCLUDING DATA 9404260080 940426 REVIEW & OUTLOOK EDITORIAL ASIDES BOOS FROM THE BALCONY A FEW DECADES AGO THE TUNES LEFT MODERN MUSIC KEEPING THE PAYING PUBLIC SQUIRMING IN ITS SEATS HAS GENERALLY BEEN THE AIM OF COMPOSERS MANY OF THEM HERE AND IN EUROPE SHIELDED FROM THEIR RESENTFUL LISTENERS BY GOVERNMENT SUBSIDIES NOW A GROUP CALLED THE HECKLERS HAS MADE ITS DEBUT AT LONDON'S COVENT GARDEN OPERA HOUSE LED BY FREDERICK STOCKEN A COMPOSER DESCRIBED AS DEFIANTLY TRADITIONALIST BY THE FINANCIAL TIMES THE DICKENSIANSOUNDING GROUP RECENTLY APPEARED AT THE FIRST NIGHT PERFORMANCE OF THE VERY MODERN TUNEFREE GAWAIN BY FAMED MODERNIST HARRISON BIRTWISTLE WHAT DID THEY DO WELL THEY HECKLED LOUDLY ONE WOMAN YELLED SHAME ABOUT THE SCORE OTHER LISTENERS THEATRICALLY HELD THEIR EARS AT THE END AND BOOED AS SURPRISED BIRTWISTLE DEVOTEES YELLED BRAVO AT INCREASING VOLUME MAYBE SUCH CLASHING DUETS WILL LEAD TO MORE HARMONIOUS EVEN MELODIC MUSIC 9404260079 940426 REVIEW & OUTLOOK EDITORIAL ASIDES WHEN THEY WERE EXCUSES BESIDES BEING GOOD ENTERTAINMENT THE CLASSIC TV LINEUP ON NICK AT NITE IS A GOOD BENCHMARK OF WHERE THIS COUNTRY USED TO BE AND OF HOW FAR IT HAS COME A RECENT EPISODE OF DRAGNET INVOLVED A YOUNG COLLEGE STUDENT WHO TOOK TO HEART 19THCENTURY FRENCH NOVELIST GUSTAVE FLAUBERT'S FASCINATION WITH KILLING HE MURDERED TWO COWORKERS MERELY TO EXPERIENCE IT NOW THIS UNUSUAL PLOT WAS NOTEWORTHY ON A COUPLE OF COUNTS WE SOMEHOW SUSPECT THAT THE CURRENT GENERATION OF TV WRITERS EITHER HAVE NEVER MET MR FLAUBERT OR WOULD BE FIRED IF THEY TRIED TO INJECT HIM INTO PRIME TIME NOWADAYS WITH A SCRIPT BUILT AROUND ONE OF HIS WORKS EVEN MORE TO THE POINT HOWEVER WAS THE DEADPAN RESPONSE OF SGT JOE FRIDAY WHEN A LIBRARIAN ALLOWED AS HOW SHE HOPED FLAUBERT CERTAINLY WASN'T THE CAUSE OF THE MURDER NOT THE CAUSE JOE FRIDAY REPLIED JUST THE EXCUSE WE HAVE TRAVELED FAR INDEED 9404260078 940426 BUSINESS BRIEFS BOISE CASCADE CORP EXPECTS TO SPEND 54 MILLION TO BUILD A NEW ENGINEEREDWOOD PRODUCTS PLANT IN LOUISIANA OR ALABAMA AND EXPAND AN EXISTING FACILITY IN WHITE CITY ORE FIRST EMPIRE STATE CORP'S MANUFACTURERS & TRADERS TRUST CO UNIT AGREED TO BUY SEVEN BRANCHES FROM CHEMICAL BANKING CORP FIRST EMPIRE WILL ALSO ASSUME 175 MILLION IN DEPOSITS TERMS WEREN'T DISCLOSED COCACOLA CO OFFICIALLY OPENED A 35 MILLION SOFTDRINK PRODUCTION FACILITY IN MOSCOW AND WILL BUILD A 30 MILLION PRODUCTION OPERATION IN ST PETERSBURG MORGAN STANLEY GROUP INC WILL OPEN AN OFFICE IN JOHANNESBURG SOUTH AFRICA IN JULY 1994 9404260077 940426 NYMEX COMEX APPROVE MERGER OF EXCHANGES COMMODITIES EXECUTIVES LOBBIED AT LAST MINUTE TO MAKE THE DIFFERENCE BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL MEMBERS OF NEW YORK'S TWO MAJOR FUTURES EXCHANGES YESTERDAY SHRUGGED OFF HISTORIC TENSIONS AND JEALOUSIES AND APPROVED A PROPOSAL THAT WOULD COMBINE THEIR OPERATIONS BEFORE THE END OF THE YEAR UNTIL THE LAST MINUTE IT REMAINED UNCERTAIN WHETHER THE MEMBERS OF NEW YORK'S COMMODITY EXCHANGE WOULD OPT TO RETAIN THEIR PRIZED INDEPENDENCE OR VOTE IN FAVOR OF THE MERGER PROPOSAL INITIATED LAST YEAR BY THE NEW YORK MERCANTILE EXCHANGE THE APPROVAL OF TWOTHIRDS OF COMEX'S MEMBERSHIP WAS REQUIRED FOR THE PLAN TO CARRY WHILE NYMEX REQUIRED A SIMPLE MAJORITY TO VOTE IN FAVOR THE FINAL RESULT SHOWED THAT 477 COMEX MEMBERS VOTED IN FAVOR OF THE MERGER WITH 181 DISSENTING ON NYMEX 468 MEMBERS VOTED YES WITH ONLY 94 MEMBERS OPPOSING THE PLAN IN A BRIEF NEWS RELEASE THE BOARDMEMBERS OF NYMEX AND COMEX SAID THEIR MERGER WOULD CREATE THE WORLD'S LARGEST PHYSICAL COMMODITY EXCHANGE THE MEMBERSHIPS OF BOTH EXCHANGES ARE TO BE COMMENDED FOR TAKING THIS HISTORIC STEP THE TWO ORGANIZATIONS SAID IN THE JOINT STATEMENT THE EXCHANGES NOW MUST SEEK THE APPROVAL OF THE COMMODITY FUTURES TRADING COMMISSION FOR THE MERGER TO GO AHEAD A PROCESS THAT COULD TAKE FOUR TO SIX MONTHS TO COMPLETE A NYMEX SPOKESWOMAN SAID NEITHER PARTY ANTICIPATES PROBLEMS IN OBTAINING REGULATORY APPROVALS A LASTMINUTE LOBBYING EFFORT BY SENIOR EXECUTIVES OF BOTH EXCHANGES APPEARS TO HAVE TIPPED THE BALANCE PERSUADING ENOUGH OF COMEX'S PRECIOUSMETALS FUTURES TRADERS TO CAST THEIR BALLOTS IN FAVOR OF THE MERGER FOR THE PROPOSAL TO WIN DANIEL RAPPAPORT CHAIRMAN OF NYMEX SAID EARLIER HE SEES THE MERGER AS A GREAT ALLIANCE AND HAD ATTEMPTED TO PERSUADE COMEX MEMBERS OF THE BENEFITS OF OPERATING AS PART OF A LARGER EXCHANGE WITH THE POTENTIAL TO COMPETE GLOBALLY COMEX'S GOLD CONTRACTS REALLY HAVE THE POTENTIAL TO CAPTURE INTEREST WORLDWIDE HE SAID UNDER THE TERMS OF THE AGREEMENT NYMEX WILL PAY COMEX ABOUT 42 MILLION WHEN THE TRANSACTION CLOSES AND AN ADDITIONAL 24 MILLION PLUS INTEREST SPREAD EQUALLY OVER THE NEXT FOUR YEARS COMEX MEMBERS WILL RETAIN THE RIGHT TO ELECT THEIR OWN BOARD AND TRADE THEIR OWN CONTRACTS BUT WON'T HAVE A DIRECT VOICE IN THE GOVERNANCE OF NYMEX COMEX WILL OPERATE AS A DIVISION OF NYMEX EXCHANGE OFFICIALS SAID NYMEX SAID ITS SEATHOLDERS WILL RECEIVE A TOTAL OF 21 MILLION WHEN THE MERGER IS COMPLETED LARGE BROKERAGE FIRMS ARE LIKELY TO REJOICE THAT THE MERGER WILL PROCEED THEY HAVE BEEN THE MOST AGGRESSIVE PROPONENTS OF COMBINING ONE OR MORE OF THE NEW YORK EXCHANGES WORRIED ABOUT DUPLICATING AND RISING COSTS AS THEIR OWN REVENUES SHRINK THE MOVE WILL ALLOW THESE DEALERS TO CONSOLIDATE THEIR OPERATIONS WILLIAM O'NEILL CHIEF FUTURES STRATEGIST AT MERRILL LYNCH & CO SAID HE WOULD LIKE TO SEE ALL FOUR OF NEW YORK'S FUTURES EXCHANGES COMBINE THEIR OPERATIONS IF WE COULD DO THAT WE COULD REALLY GIVE THE NEW YORK FUTURES EXCHANGES AN EDGE THAT THEY JUST DON'T HAVE RIGHT NOW HE SAID IT WOULD PROVIDE FOR A MORE COHESIVE EFFICIENT MARKET I DON'T THINK WE SHOULD WALK BEFORE WE CAN RUN SAID R PATRICK THOMPSON PRESIDENT OF NYMEX BUT HE ADDED THAT HE EXPECTS THE TWO MERGED EXCHANGES TO COOPERATE MORE CLOSELY WITH THE NEW YORK COTTON EXCHANGE AND THE COFFEE SUGAR & COCOA EXCHANGE WITH WHICH THEY CURRENTLY SHARE ONE LARGE TRADING FACILITY IN NEW YORK'S WORLD TRADE CENTER CERTAINLY THE MERGED NYMEX AND COMEX WILL BE PUTTING THEMSELVES IN A NEW COMMON FACILITY VERY QUICKLY MR THOMPSON SAID IT'S IMPORTANT TO HAVE OTHER EXCHANGES WORK WITH US ON THAT OTHER AREAS OF COOPERATION COULD INCLUDE DEVELOPMENT OF COMMON CLEARING SYSTEMS BUT CORPORATE MERGERS ARE A VERY DIFFERENT KIND OF ANIMAL AS I THINK WE'VE SEEN IN THIS PROCESS HE ADDED MR THOMPSON NOTED THIS IS THE THIRD SERIOUS ATTEMPT TO MERGE THE TWO EXCHANGES SINCE THEY BEGAN SHARING THE TRADING FACILITY IN 1977 WITH THE MOST RECENT DISCUSSIONS TAKING PLACE IN 1990 NYMEX AND COMEX ALSO EXPECT SOME STAFFING AND BACKOFFICE COSTS TO BE ELIMINATED ALONG WITH JOBS MR RAPPAPORT EARLIER SAID HE BELIEVED A MERGER COULD SAVE 5 MILLION OR MORE ANNUALLY IN STAFFING COSTS 9404260076 940426 MARGARETTEN SAYS IT IS NEGOTIATING FIRM'S POSSIBLE SALE BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MORTGAGE BANKER MARGARETTEN FINANCIAL CORP SAID IT IS IN TALKS WITH SEVERAL MAJOR FINANCIAL INSTITUTIONS ABOUT A POSSIBLE SALE OF THE COMPANY NEWS OF THE TALKS SENT MARGARETTEN'S SHARES UP ALMOST 28 OR 4125 A SHARE TO 19125 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE SHARES OF SEVERAL OTHER MORTGAGE LENDERS ALSO ROSE COUNTRYWIDE CREDIT INDUSTRIES INC WAS UP 75 CENTS TO 2125 WHILE NORTH AMERICAN MORTGAGE CO WAS UP 1625 TO 24 MARGARETTEN'S SHARES HAD BEEN LANGUISHING RECENTLY AS CONCERNS OVER HIGHER INTEREST RATES HAVE WORRIED THE MORTGAGE LENDING INDUSTRY BUT THE ANNOUNCEMENT COULD PROMPT A FLURRY OF MARKET INTEREST ONE ANALYST SAID WE'RE RIGHT AT THE TIP OF THE ICEBERG HERE SAID GARETH PLANK AN ANALYST IN SAN FRANCISCO FOR MABON SECURITIES CORP I THINK WE'RE GOING TO SEE AN ACCELERATION OF THE CONSOLIDATION OF THE INDUSTRY MR PLANK SAID BECAUSE MORTGAGE LENDING ISN'T RESTRICTED BY STATE LINES COMMERCIAL BANKS COULD BE PARTICULARLY INTERESTED IN GAINING A FOOTHOLD IN THE BUSINESS ANALYSTS HAVE BEEN EXPECTING A CONSOLIDATION DUE TO INDUSTRY OVERCAPACITY AND LOAN ORIGINATIONS MAY DECLINE THIS YEAR BECAUSE OF HIGHER INTEREST RATES THOMAS O'DONNELL AN ANALYST AT PRUDENTIAL SECURITIES INC SAYS INDUSTRY ORIGINATIONS OF REFINANCINGS AND PURCHASE MORTGAGES WILL FALL ABOUT 30 THIS YEAR TO AS LITTLE AS 700 BILLION FROM 11 TRILLION IN 1993 YESTERDAY'S STOCK MOVE BOOSTED MARGARETTEN'S MARKET VALUE TO ABOUT 256 MILLION ANALYSTS ESTIMATED MARGARETTEN COULD FETCH FROM THE MID20S TO LOW 30S A SHARE OR A TOTAL OF ABOUT 332 MILLION TO 400 MILLION ALTHOUGH THE COMPANY DIDN'T IDENTIFY ITS POSSIBLE SUITORS SPECULATION CENTERED ON SEVERAL BIG NEW YORK COMMERCIAL BANKS INCLUDING CHASE MANHATTAN CORP AND CHEMICAL BANKING CORP SPOKESMEN FOR CHASE AND FOR CHEMICAL DECLINED TO COMMENT FELIX M BECK MARGARETTEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER DECLINED TO ELABORATE ON THE ACQUISITION DISCUSSIONS BUT NOTED THE PERTH AMBOY NJ COMPANY HAD A PROFITABLE FOURTH QUARTER ALTHOUGH IT HAD A MAJOR AFTERTAX CHARGE OF 208 MILLION IN THE 1993 THIRD QUARTER RELATED TO HIGHER THAN NORMAL MORTGAGE PREPAYMENTS WHICH RESULTED IN A NET LOSS OF 191 MILLION OR 128 A SHARE MARGARETTEN ONE OF THE FIVE LARGEST MORTGAGE LENDERS IN THE US ORIGINATED ABOUT 115 BILLION OF LOANS LAST YEAR AND HAD A LOANSERVICING PORTFOLIO OF 156 BILLION MR O'DONNELL OF PRUDENTIAL SECURITIES SAID THAT ALTHOUGH MARGARETTEN IS AN EXCELLENT ORGINATOR OF MORTGAGES THEY HAVE BEEN DEALING WITH A HIGH RUNOFF IN THEIR SERVICING PORTFOLIO AS MORTGAGES GET PREPAID FASTER IN A LOWER INTEREST RATE ENVIRONMENT 9404260075 940426 CREDIT MARKETS BONDS RISE SHARPLY ON BELIEF AMONG INVESTORS THAT ECONOMY MAY NOT BE AS STRONG AS FEARED BY THOMAS D LAURICELLA AND ABBY SCHULTZ SPECIAL TO THE WALL STREET JOURNAL NEW YORK BOND PRICES ROSE SHARPLY PARTLY IN REACTION TO A GROWING BELIEF AMONG SOME INVESTORS THAT THE ECONOMY MAY NOT BE AS STRONG AS FEARED BOND INVESTORS FEAR RAPID ECONOMIC GROWTH BECAUSE IT OFTEN COMES WITH HIGHER INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN YESTERDAY THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 3/4 POINT OR MORE THAN 750 FOR A BOND WITH A 1000 FACE VALUE TO 88 30/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE DROPPED TO 715 FROM 722 ON FRIDAY THE LOWEST LEVEL SINCE MARCH 31 WHILE BONDS PUT IN A SOLID PERFORMANCE MOST OF THE TALK CENTERED ON MARKET CLOSURES SCHEDULED FOR TOMORROW IN TRIBUTE TO FORMER PRESIDENT RICHARD NIXON WHO DIED FRIDAY THE PUBLIC SECURITIES ASSOCIATION RECOMMENDED THAT THE GOVERNMENTSECURITIES MARKET BE CLOSED GOVERNMENT OFFICES ALSO WILL BE CLOSED AT THE CHICAGO BOARD OF TRADE THE CHICAGO MERCANTILE EXCHANGE AND THE NATION'S STOCK MARKETS THE TREASURY DEPARTMENT POSTPONED TOMORROW'S SCHEDULED AUCTION OF 11 BILLION OF FIVEYEAR NOTES UNTIL THURSDAY THE TREASURY ALSO CHANGED THE TIME FOR SUBMITTING BIDS FOR THE FIVEYEAR SALE NONCOMPETITIVE BIDS WILL BE DUE BY NOON EDT AND COMPETITIVE BIDS MUST BE SUBMITTED BY 1230 PM EDT OTHER TERMS OF THE AUCTION REMAIN THE SAME THE COMMERCE DEPARTMENT STILL PLANS TO RELEASE THE MARCH DURABLEGOODS ORDERS REPORT TOMORROW THE POSTPONEMENT OF THE FIVEYEAR NOTE AUCTION CONTRIBUTED TO SOME OF THE BUYING YESTERDAY DEALERS SAID IN ADVANCE OF AN AUCTION TRADERS TYPICALLY SELL SECURITIES SHORT IN ANTICIPATION OF BUYING THE ISSUES AT A LOWER PRICE AT THE AUCTION BUT THE DELAY IN THE FIVEYEAR NOTE SALE MEANS THAT THE AUCTION WON'T TAKE PLACE UNTIL AFTER THURSDAY'S REPORT ON FIRSTQUARTER GROSS DOMESTIC PRODUCT IN A SHORT SALE DEALERS SELL A BORROWED SECURITY IN HOPES OF BUYING IT BACK AT A LOWER PRICE AND POCKETING THE DIFFERENCE ONCE WE HAD THE ANNOUNCEMENT THAT THE MARKET WILL BE CLOSED THE WHOLE TRADING PROFILE OF THE WEEK CHANGED SAID MATTHEW ALEXY GOVERNMENT BOND MARKET STRATEGIST AT CS FIRST BOSTON EVERYONE WHO WAS SET UP SHORT FOR THE AUCTION HAD TO EITHER COVER THOSE POSITIONS OR DECIDE TO RIDE THEM THROUGH THE GDP REPORT MOREOVER IN THE WAKE OF DATA RELEASED LAST WEEK SHOWING A WIDENING OF THE TRADE GAP SOME ECONOMISTS PUSHED DOWN THEIR ESTIMATES FOR FIRSTQUARTER GROWTH TO SOMETHING CLOSER TO 3 RATHER THAN 4 MOST TRADERS APPEARED TO DECIDE IT WAS BETTER TO BUY BACK THE SECURITIES THEY HAD SOLD IN CASE THE MARKET RALLIES THURSDAY MORNING THAT BUYING GAVE THE MARKET A PUSH HIGHER AT MIDDAY THE MOVE HIGHER GAINED MOMENTUM AS THE AFTERNOON WORE ON ESPECIALLY ONCE THE YIELD ON THE TREASURY'S 30YEAR BOND BROKE BELOW 72 THAT LEVEL HAD BEEN A BARRIER FOR THE MARKET IN RECENT DAYS ONCE THE BOND MANAGED TO BREAK THROUGH YOU GOT A LITTLE BIT OF FOLLOWTHROUGH BUYING SAID WARD MCCARTHY A MANAGING DIRECTOR AT STONE & MCCARTHY RESEARCH ASSOCIATES ALSO HELPING THE LONG END OF THE BOND MARKET WERE ARBITRAGE TRADES IN WHICH DEALERS BOUGHT LONGERTERM SECURITIES WHILE SELLING SHORTER MATURITIES KNOWN AS YIELDCURVE FLATTENING TRADES THOSE BETS PAY OFF WHEN THE SPREAD BETWEEN SHORTTERM AND LONGTERM INTEREST RATES NARROW MANY OF THOSE SPREADS HAVE COLLAPSED RECENTLY FOR EXAMPLE THE GAP BETWEEN THE YIELD ON THE TWOYEAR NOTE AND 30YEAR BOND FELL TO 157 PERCENTAGE POINTS YESTERDAY FROM AROUND 19 PERCENTAGE POINTS IN EARLY APRIL WITH ECONOMISTS REVISING DOWNWARD THEIR FORECASTS FOR FIRSTQUARTER ECONOMIC GROWTH THE MARKET HAS BEEN ABLE TO SHED SOME OF ITS OVERWHELMING BEARISHNESS OF THE PAST FEW MONTHS AS CONCERNS ABOUT THE CURRENT PACE OF ECONOMIC GROWTH HAVE EASED WORRIES ABOUT FUTURE INFLATION PRESSURES HAVE ALSO SUBSIDED THAT HAS ALLOWED THE PRICES OF LONGERTERM SECURITIES WHICH ARE MOST VULNERABLE TO INFLATION TO CLIMB THERE HAS BEEN A BIT OF A PSYCHOLOGY CHANGE TAKING PLACE IN THE MARKET OVER THE LAST SEVEN TO 10 DAYS SAID MR MCCARTHY BUT WHILE THE TONE AMONG LONGERTERM TREASURYS HAS BECOME A BIT MORE BUOYANT THE SHORT END OF THE BOND MARKET CONTINUES TO BE WEIGHED DOWN BY THE THREAT OF FUTURE FEDERAL RESERVE RATE INCREASES THE SHORT END HAS NO PLACE TO GO BECAUSE OF THE FED MR MCCARTHY SAID OTHER TRADERS ARGUED THAT DESPITE THE MARKET'S BETTER PERFORMANCE IN RECENT DAYS THE BEAR MARKET REMAINS INTACT WE WERE DOWN ALMOST 10 WEEKS IN A ROW THE MARKET WAS DUE FOR A BOUNCEBACK SAID MARCELLO FRUSTACI A TRADER AT DAIWA SECURITIES AMERICA THIS WAS A NATURAL MOVE AND I'LL BE LOOKING FOR PLACES TO SELL STUFF MEANWHILE YESTERDAY THE US TREASURY SOLD 2289 BILLION OF THREEMONTH AND SIXMONTH BILLS THE THREEMONTH BILLS WERE SOLD AT AN AVERAGE DISCOUNT RATE OF 385 FOR A COUPONEQUIVALENT YIELD OF 394 THE SIXMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 425 FOR A COUPONEQUIVALENT YIELD OF 44 HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR 1994 AND THE 26WEEK BILLS MATURE OCT 27 1994 CHRYSLER CORP DELAYED AN 800 MILLION OFFERING OF SECURITIES BACKED BY LOANS TO CHRYSLER DEALERS ONE OF THE FEW INSTANCES IN WHICH A LARGE ASSETBACKED OFFERING HAS BEEN POSTPONED ELSEWHERE MORTGAGE SECURITIES ENDED MODERATELY HIGHER RISING IN LIGHT VOLUME WITH US TREASURYS SOME MARKET PLAYERS TOOK ADVANTAGE OF THE RISING MARKET TO UNLOAD MORTGAGE SECURITIES LATE IN THE DAY ACCORDING TO ONE NEW YORK TRADER GOVERNMENT NATIONAL MORTGAGE ASSOCIATION'S 8 COUPON PASSTHROUGH SECURITIES FOR MAY DELIVERY ROSE MORE THAN 1/4 POINT TO 100 14/32 CHRYSLER HAD PLANNED A TWOPART OFFERING 300 MILLION IN 10YEAR NOTES AND 500 MILLION IN THREEYEAR NOTES THE COMPANY PUT OFF THE ISSUE CITING CHANGED CONDITIONS IN THE OVERTHECOUNTER DERIVATIVES MARKET KNOWN AS INTERESTRATE SWAPS SWAPS ARE PRIVATE AGREEMENTS BETWEEN MARKET PLAYERS THAT ENABLE A BORROWER TO SWITCH FROM A FIXED RATE OF INTEREST PAYMENTS TO A FLOATING RATE OR VICE VERSA DESPITE THE COMPANY'S POSITION OFFICIALS AT RIVAL INVESTMENT BANKS SAY THE DEAL'S DOWNFALL WAS ITS STEEP INITIAL PRICE THEY ALSO ARGUED THAT MORGAN STANLEY HADN'T MARKETED THE UNUSUAL BONDS EFFECTIVELY CRAIG GOLDBERG HEAD OF MORGAN'S ASSETBACKED GROUP WOULDN'T COMMENT FURTHER EXCEPT TO SAY WE WOULD ANTICIPATE THIS TRANSACTION WILL GET DONE IN THE FUTURE ONCE THE MARKET STABILIZES THE TWOPART TRANSACTION RELIED ON AN INTERNALSWAP CONTRACT THAT IF EXECUTED LATE LAST WEEK OR YESTERDAY WOULD HAVE BOOSTED CHRYSLER'S FINANCING COSTS BY ABOUT 010 PERCENTAGE POINT ACCORDING TO MARKET SOURCES THE SWAP WAS NEEDED TO CONVERT PRIMERATEBASED FLOATINGRATE DEALER LOANS INTO FIXEDRATE SECURITIES CHANGING MARKET CONDITIONS REDUCED THE VALUE OF FIXEDRATE CONTRACTS WHICH IS WHY CHRYSLER'S COSTS WOULD HAVE RISEN BUT OFFICIALS AT RIVAL FIRMS FOCUSED ON WHAT MORGAN WANTED TO CHARGE INVESTORS FOR A TYPE OF PROTECTION THEY MAY NOT HAVE NEEDED ACCORDING TO THE OFFICIALS CHRYSLER'S OFFERING WAS TO BE ISSUED IN A COMPLEX STRUCTURE THAT INCLUDED SEVERAL RESERVE FUNDS TO GUARD INVESTORS AGAINST EARLY AMORTIZATION IF A DEAL AMORTIZES EARLY INVESTORS GET THEIR PRINCIPAL BACK SOONER THAN ANTICIPATED MEANING THEY MAY HAVE TO REINVEST THE FUNDS AT A TIME WHEN THE MARKET IS INHOSPITABLE MORGAN ASKED INVESTORS TO PAY A LITTLE MORE FOR THIS PROTECTION BUT MOST INVESTORS BELIEVED EARLY AMORTIZATION IS UNLIKELY AND WERE UNWILLING TO PAY THE PRICES BEING OFFERED TRADERS SAID THE THREEYEAR SECURITIES FOR INSTANCE WERE BEING OFFERED TO YIELD 040 PERCENTAGE POINT ABOVE THE TREASURY'S THREEYEAR NOTE ONE TRADER SAYS THE PREVAILING MARKET PRICE WOULD EQUATE WITH A YIELD SPREAD CLOSER TO 050 PERCENTAGE POINT THEY WERE WAY OFF HE SAID OF THE PRICING AN UNDERWRITING OFFICIAL DISPUTED RIVAL BANKERS' CRITICISM HE SAYS THE BONDS WERE SELLING BEFORE THE OFFERING WAS PULLED AND INVESTORS LIKED THE STRUCTURE THOSE INTERESTED IN THE 10YEAR BONDS PARTICULARLY LIKED THE EARLY AMORTIZATION PROTECTION OFFERED BY THE RESERVE FUNDS HE SAYS THE CORPORATEBOND MARKET MOSTLY IGNORED YESTERDAY'S JUMP IN TREASURYS AS ISSUANCE AND TRADING REMAINED LIGHT SLIGHTLY MORE THAN 1 BILLION OF DEBT WAS SOLD NEARLY HALF OF WHICH WAS BY THE FEDERAL NATIONAL MORTGAGE ASSOCIATION CORPORATE ISSUERS INCLUDED GREYHOUND FINANCIAL CORP A UNIT OF GFC FINANCIAL CORP AMERICAN BANKERS INSURANCE GROUP INC AMERITECH CAPITAL FUNDING CORP A UNIT OF AMERITECH CORP AND PEPSICO INC AMERITECH CAPITAL FUNDING OFFERED 225 MILLION OF THREEYEAR FLOATINGRATE NOTES TO PARTIALLY FUND AMERITECH CORP'S INVESTMENT IN A DATASERVICES VENTURE WITH GENERAL ELECTRIC CO'S INFORMATIONSERVICES SUBSIDIARY THE NONCALLABLE DEBT WAS PRICED AT PAR AND WILL FLOAT AND PAY QUARTERLY AT THE THREEMONTH LONDON INTERBANK OFFERED RATE THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO AMERICAN BANKERS INSURANCE GROUP SOLD 75 MILLION OF FIVEYEAR MEDIUMTERM NOTES AT PAR TO YIELD 76 THE COMPANY WANTED TO REDUCE THE AMOUNT OF ITS FLOATINGRATE DEBT TO HEDGE ITS RISKS AGAINST INCREASES IN INTEREST RATES SAID FLOYD DENISON EXECUTIVE VICE PRESIDENT AND DIRECTOR OF CORPORATEASSET MANAGEMENT THE NONCALLABLE ISSUE WAS PRICED 105 PERCENTAGE POINTS ABOVE TREASURYS THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY PAINEWEBBER INC MUNICIPAL BONDS WERE MODERATELY HIGHER AT THE CLOSE HAVING CLIMBED WITH TREASURYS AFTER STALLING IN EARLY TRADING AMONG ACTIVELY TRADED MUNIS THE CALIFORNIA PUBLIC WORKS BOARD'S 6375 BONDS DUE 2019 WERE QUOTED 5/8 POINT HIGHER AT 98 3/4 IN LATE TRADING YIELDING 646 HARRIS COUNTY TEXAS' 610 BONDS DUE 2016 WERE QUOTED ABOUT 1/4 FIRMER AT 99 YIELDING 615 IN THE US GOVERNMENTBOND MARKET THE 625 30YEAR BOND WAS UP 25/32 AT 89 IN LATE TRADING YIELDING 715 THE OVERSOLD BOND MARKETS ARE ATTEMPTING TO REBOUND AFTER DIVING IN THE LAST TWO MONTHS ON JITTERS ABOUT CREDIT TIGHTENING BY THE FEDERAL RESERVE BIG GAINS WERE POSTED SEVERAL DAYS LAST WEEK DESPITE THE FED'S LATEST TIGHTENING APRIL 18 IN THE CASE OF MUNIS IT DOESN'T TAKE ALL THAT MUCH BUYING TO BOOST PRICES BECAUSE OF THE SUPPLY SITUATION MUCH OF THIS WEEK'S NEWISSUE ACTION MAY TAKE PLACE TODAY IN THE COMPETITIVE SECTOR BIDS WILL BE TAKEN FOR WASHINGTON STATE'S 335 MILLION SERIES 1994 GENERAL OBLIGATION IMPROVEMENT BONDS ON THE NEGOTIATED SIDE A LEHMAN BROTHERS GROUP MAY PRICE THE PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY'S 380 MILLION REVENUE BONDS AND A DILLON READ & CO GROUP MAY PRICE KLAMATH FALLS OREGON'S 250 MILLION ELECTRICREVENUE BONDS 9404260074 940426 NOTE TO NEW YORK MAYOR IN CHINA THE SQUEEGEE MAN IS AN ARMY MAN BY JULIA LEUNG STAFF REPORTER OF THE WALL STREET JOURNAL CHENGDU CHINA NEED A CARWASH DRIVERS HEADING INTO THE CAPITAL OF CHINA'S SICHUAN PROVINCE DON'T HAVE A CHOICE SENTRIES MAN ROADBLOCKS ON THE EIGHT TRUNK ROADS THAT FAN OUT FROM THE CENTER OF THE CITY TO MAKE SURE THAT VEHICLES ENTERING CHENGDU WASH UP AND PAY UP THE EIGHT CARWASH CENTERS MAKE A TIDY PROFIT FOR THEIR OPERATORS THE PEOPLE'S LIBERATION ARMY THE CITY TRANSPORT BUREAU AND OTHER GOVERNMENT BRANCHES AT TWO YUAN 23 CENTS A WASH THE FEES ADD UP MORE THAN 10000 VEHICLES A DAY DRIVE THROUGH THE ARMY'S CENTER AT CHENGDU'S SOUTHERN EDGE TRIPLE THAT NUMBER PASS THROUGH THE CITY'S BUSIEST CARWASH IN THE NORTHERN SUBURBS AT THE ARMY'S CENTER WORKERS AIM THEIR HOSES AT SLOWING CARS AS PASSENGERS SCRAMBLE TO ROLL UP THE WINDOWS BEFORE THE SPRAY HITS WASHERS SPLASH THE CARS THREE TIMES AND MOVE ON THE MINUTELONG SERVICE DOESN'T INCLUDE SCRUBBING NOT THAT IT MATTERS MANY DRIVERS ARE IN SUCH A HURRY THAT THEY STAY ONLY LONG ENOUGH FOR THE WATER TO STREAK THEIR VEHICLES' DIRTENCRUSTED SIDES OTHERS SPEED OFF AFTER PAYING THEIR TWO YUAN THE WATER ISN'T CLEAN SAYS THE DRIVER FOR A TAIWANESE BUSINESSMAN AS HE RACES AWAY I'D RATHER DO THE CLEANING MYSELF THE ARMY SEES ITS CARWASH AS A PUBLIC SERVICE CHENGDU IS ONE OF CHINA'S 10 CLEANEST CITIES AND THE ARMY IS HELPING TO ENSURE THAT INCOMING VEHICLES DON'T DIRTY THE CITY OR ITS REPUTATION SAYS THE CENTER'S SUPERVISOR THE ARGUMENT MIGHT HOLD WATER IF CHENGDU WERE AS SQUEAKYCLEAN AS SINGAPORE BUT MORE THAN HALF OF CHENGDU'S HOUSEHOLDS BURN COAL AS FUEL POLLUTING THE AIR SO BADLY THAT SOME FOREIGN RESIDENTS DEVELOP WHAT THEY CALL THE CHENGDU COUGH IN THEORY ONLY AMBULANCES AND SPOTLESSLY CLEAN VEHICLES CAN GET INTO THE CITY WITHOUT A WASH BUT A VIGIL AT THE SENTRY POST OUTSIDE ONE CENTER TELLS A DIFFERENT STORY A YOUNG GUARD WAVES PAST VEHICLES THAT BEAR MILITARY OR GOVERNMENT LICENSE PLATES NO MATTER HOW FILTHY THEY LOOK NOT EVERYONE THOUGH REGARDS THE WASH AS A HARDSHIP A YOUNG COUPLE FROM A NEARBY COUNTY ARE TAKING THEIR WHITE SANTANA IN FOR A NIGHT ON THE TOWN AS THE HUSBAND EXHORTS THE WASHERS TO BE MORE THOROUGH HIS WIFE WRAPS HERSELF IN HER MINK COAT AND SAYS THIS IS A GREAT SERVICE WE ARE NEAT AND TIDY PEOPLE AND WE WANT OUR CAR TO LOOK THE SAME 9404260073 940426 NORTHWEST PASSAGE ICE ROAD TRUCKERS RISK FALLING THROUGH THEY MAKE THE TRIP CAUTIOUSLY ALSO TO AVOID WHITEOUTS BLOWOUTS COLD AND CARIBOU BY NEIL ULMAN STAFF REPORTER OF THE WALL STREET JOURNAL CONTWOYTO LAKE NORTHWEST TERRITORIES LONGHAUL TRUCKER KEITH MUDGE HAS PICKED UP A HITCHHIKER ON AN UNUSUAL ROAD NEAR THE ARCTIC CIRCLE AND HE IS CONCERNED ABOUT SAFETY AND SEAT BELTS AS HIS PASSENGER REACHES TO BUCKLE UP MR MUDGE FROWNS AND SHAKES HIS HEAD I WOULDN'T DO THAT ON THIS ROAD HE ADVISES IF SHE STARTS TO GO THROUGH THE ICE YOU WON'T WANT TO WASTE TIME UNBUCKLING I LEAVE MINE OFF THE 48YEAROLD MR MUDGE SHOULD KNOW HE IS COMPLETING HIS 25TH TRIP OF THE WINTER ON THE 380MILE ICE ROAD FROM YELLOWKNIFE IN CANADA'S NORTHWEST TERRITORIES TO THE LUPIN GOLD MINE A RICH PROPERTY OF THE ECHO BAY MINES LTD WHOSE HEADQUARTERS IS IN EDMONTON THE FIRST 35 MILES FROM YELLOWKNIFE FOLLOW THE INGRAHAM TRAIL A GRAVEL ROAD MAINTAINED BY THE GOVERNMENT AFTER THAT ECHO BAY MINES TAKES OVER PLOWING A ROUTE THAT SNAKES ACROSS LAKES AND PORTAGES ABOUT 120 MILES NORTHEAST OF YELLOWKNIFE THE ROAD LEAVES THE INCREASINGLY SCRAGGLY SPRUCE FOREST AND PASSES ONTO THE TUNDRA IT IS WARM IN THE CAB BUT THE OUTSIDE TEMPERATURE IS 20 DEGREES BELOW ZERO FAHRENHEIT ON A MARCH EVENING AS MR MUDGE EASES HIS SEVENAXLE DOUBLETRAILER FUEL TRUCK ALONG AT 21 MILES PER HOUR THAT'S THE SPEED LIMIT ECHO BAY MINES ENFORCES ON THE ROAD LEST PRESSURE WAVES BUILD UP IN THE LAKE WATER BENEATH THE TRUCK AND BLOW OUT A WEAK SPOT IN ICE NORMALLY FOUR TO SEVEN FEET THICK ANOTHER DOUBLETRAILER TANKER IS FOLLOWING A QUARTER MILE BEHIND AND IN CONSTANT RADIO CONTACT CONFORMING TO ECHO BAY'S REQUIREMENT THAT TRUCKS TRAVEL IN CONVOYS MR MUDGE'S SAFETY CONCERNS ARE WELL GROUNDED EARLY ONE MORNING IN FEBRUARY WILLIE ANDERSON 37 OF LEDUC ALBERTA WAS LISTENING TO A ROY ORBISON TAPE WHEN HE FELT THE DOUBLETRAILER RIG HE WAS DRIVING ON THIS LAKE SLOW TO AN INVOLUNTARY STOP AS THE FRONT OF THE CAB TILTED UPWARD AND SANK INTO THE ICE WATER GURGLED ON THE FLOOR NEITHER DOOR WOULD OPEN WITH NO TIME TO RADIO FOR HELP HE FRANTICALLY KICKED OUT THE WINDSHIELD AND ESCAPED TO THE LAKE SURFACE AS HIS CAB SANK DRESSED ONLY IN SHIRT JEANS AND RUNNING SHOES MR ANDERSON SPRINTED BACK IN THE MINUS 40 DEGREE DARKNESS TO WARN THE NEXT TRUCK AND GET OUT OF THE COLD HIS RIG CAME TO REST WITH ITS CAB AND LEADING TRAILER SUBMERGED AND ITS SECOND TRAILER STILL ON THE SURFACE RESCUE CREWS USED EXPLOSIVES TO FREE THE RIG FROM THE ICE THREE WEEKS LATER AFTER A DIVER HAD ATTACHED LIFTING CABLES TO CRANES WHILE PLUNGING THROUGH THE ICE IS RARE OTHER HAZARDS ABOUND A MECHANIC WAS KILLED ON THE ICE ROAD LAST MONTH WHEN AN OVERSIZED TUNDRA TIRE USED FOR SNOW AND ICE TRAVEL EXPLODED AS HE WAS INFLATING IT MIGRATING CARIBOU AREN'T ALWAYS KNOWN TO STOP FOR TRUCKS PRESSURE RIDGES CAN HEAVE UP IN THE ICE CREATING DANGEROUS BUMPS OR IN EXTREME CASES TRAFFICSTOPPING BARRIERS WINDS HOWLING ACROSS THE TUNDRA NEED REACH ONLY ABOUT 25 MPH TO BLOW THE SNOW INTO ZEROVISIBILITY WHITEOUTS THAT STOPS TRUCKS TOO AND IF THE WINDS PERSIST DRIFTING SNOW BLOCKS THE ROAD UNTIL ONE OF ECHO BAY'S FIVE PLOWS COMES TO THE RESCUE IN THE FIRST 32 DAYS OF THE WINTER ROAD'S OPERATION LAST YEAR WE DIDN'T HAVE TWO COMPLETE DAYS WHERE SOME PORTION OF THE ROAD WASN'T CLOSED REPORTS JOHN ZIGARLICK THE FORMER PRESIDENT AND CEO OF ECHO BAY MINES WHO PIONEERED THE ROAD IN 1982 TO PREPARE FOR SUCH DELAYS OR A BREAKDOWN MR MUDGE CARRIES A TWODAY SUPPLY OF FOOD AND DRINK WARM WINTER CLOTHING A SLEEPING BAG RATED TO 65 DEGREES BELOW ZERO AND A MAKESHIFT STOVE FOR HEAT ROAD CONSTRUCTION MUST BE REPEATED EACH YEAR AS THE LAKES BEGIN FREEZING UP IN SEPTEMBER BY LAST DECEMBER ECHO BAY HELICOPTER PILOT JOHN BUCKLAND 35 WAS OUT FINDING THE ROUTE WITH GLOBAL POSITION SYSTEM NAVIGATION EQUIPMENT THAT RECEIVES SATELLITE SIGNALS DEPENDING ON THE VISIBILITY HE FLIES A MILE OR TWO AHEAD OF THE PLOWS LANDS ON THE ICE UNTIL THEY CATCH UP THEN FLIES ON HEAVY HAULING NORMALLY BEGINS IN JANUARY AND LASTS THROUGH MARCH LIGHTER TRUCKS CONTINUE TO USE SECTIONS OF THE ROAD FOR AS LONG AS IT IS DEEMED SAFE ICE ISN'T COMPLETELY GONE ON CONTWOYTO LAKE UNTIL LATE JULY THE DANGERS DIFFICULTIES AND 5 MILLION ANNUAL COST OF CREATING AND MAINTAINING THE ROAD ARE MORE THAN WORTH IT TO ECHO BAY MINES WHICH USES IT TO SUPPLY ITS LUPIN MINE WITH AMONG OTHER THINGS FOOD EQUIPMENT AND 4138000 GALLONS OF FUEL CONSUMED LAST YEAR BY THE MINE'S EIGHT DIESEL ELECTRIC GENERATORS UNDER ECHO BAY'S AGREEMENT WITH THE TERRITORIES GOVERNMENT ANYONE CAN TRAVEL ON THE ROAD BUT ECHO BAY RETAINS CONTROL OVER COMMERCIAL HAULING RIGHTS IT HAS RECENTLY BECOME A MAJOR SUPPLY ARTERY TO THE SCORES OF EXPLORATION CAMPS THAT HAVE SPRUNG UP IN A DIAMOND RUSH CENTERED AROUND LAC DE GRAS WHERE ECHO BAY MAINTAINS ITS OWN CAMP AND WAY STATION GIVEN THE ARCTIC WEATHER FOR A REPORTER TO HITCH A RIDE ON THE ICE ROAD INVOLVES MORE THAN JUST STANDING BY THE SIXFOOTHIGH PLOWED ROADSIDE SNOWBANKS WITH A THUMB OUT MR MUDGE'S PASSENGER ARRIVED AT THE PORTAGE BETWEEN PELLATT AND CONTWOYTO LAKES FROM A REMOTE EXPLORATION CAMP ON A SLED TOWED BY AN INUIT HUNTER ON A SNOWMOBILE THERE HE FOUND ECHO BAY'S EMERGENCY RESCUE SHIPPING CONTAINER A CONSTANTLY RUNNING GENERATOR LIGHTS THE CONTAINER AND POWERS A HIGHFREQUENCY RADIO THAT SHARES A CHANNEL WITH THE LUPIN MINE AND THE LAC DE GRAS WAY STATION A CALL ON THE RADIO DETERMINED THAT A TRUCK CONVOY HAD RECENTLY LEFT LAC DE GRAS FOR LUPIN AND WAS DUE AT THE PORTAGE IN THREE HOURS THE BUNDLEDUP HITCHHIKER SETTLED DOWN TO WAIT WHILE HIS INUIT FRIEND SCOURED THE TUNDRA BY SNOWMOBILE FOR CARIBOU WOLVES OR WOLVERINES OTHER HAZARDS OF THE ROAD INCLUDE FATIGUE AND BOREDOM WHEN MR MUDGE ARRIVES AT LUPIN AT 8 PM HE HAS ALREADY SPENT NEARLY 12 HOURS DRIVING 250 MILES AT 21 MPH AFTER A MICROWAVED DINNER THAT THE MININGCAMP KITCHEN HAS SAVED FOR HIM HE TURNS AROUND TO DRIVE ANOTHER 70 MILES BACK TO THE PORTAGE THERE HE WILL PULL OFF THE ROAD AND SLEEP IN THE BUNK AT THE REAR OF THE CAB WITH THE MOTOR RUNNING HIS TRUCK ENGINE LIKE MUCH MACHINERY AT THIS LATITUDE IS NEVER TURNED OFF ALL WINTER LONG MR MUDGE SAYS HE REALLY ENJOYS THE NORTH THE OCCASIONAL WILDLIFE SIGHTINGS AND THE BREATHTAKING NORTHERN LIGHTS HE PROUDLY SHOWS HIS PASSENGER HIS PORTFOLIO OF SNAPSHOTS OF ARCTIC SUNSETS AND TRUCKS STRANDED IN STORMS TO FIGHT ENNUI HE PLAYS TAPES OF COUNTRY MUSIC ADJUSTS HIS PNEUMATIC SEAT AND TALKS ON THE RADIO WITH DRIVERS PASSING IN THE OTHER DIRECTION FROM TIME TO TIME HE MUNCHES A CHOCOLATE COOKIE BUT DRINKING FROM A THERMOS CUP IS SURPRISINGLY DIFFICULT AS THE CAB BOUNCES CONSTANTLY OVER CRACKS IN THE ICE SIDE BETS ON ARRIVAL TIME AT THE MINE AND OTHER REGULAR RADIO CHATTER WITH WALTER CROW WHO IS DRIVING THE OTHER TRUCK IN THE CONVOY PASS THE TIME AND SERVE AS SAFETY CHECKS BUT AFTER HIS 25TH ROUND TRIP MR MUDGE SAYS THE ROUTINE GETS OLD HE THINKS THIS MAY BE HIS LAST RUN OF THE WINTER AND GROANS AT A DISPATCHER'S RADIOED SUGGESTION THAT HE MIGHT HAVE TO HAUL ONE MORE LOAD TO LUPIN HE IS EAGER TO GET BACK TO HIS WIFE IN ST ALBERT NEAR EDMONTON SINCE THEIR TWO CHILDREN HAVE GROWN UP SHE ACCOMPANIES HIM ON CERTAIN OTHER ARCTIC ROUTES BUT THE LUPIN ICE ROAD IS WHERE SHE DRAWS THE LINE 9404260072 940426 LEISURE & ARTS THE 37TH PRESIDENT REMEMBERED ADMIRED BY JOHN LEHMAN IT IS A COMMON AND VALID OBSERVATION THAT LIFE IN POLITICAL WASHINGTON HAS GOTTEN A LOT MEANER IN RECENT YEARS WHILE IT IS TRUE THAT THE TWIN TORQUEMADAS OF JACK BROOKS AND JOHN DINGELL HAVE ADDED A PARTICULARLY UGLY NEW DIMENSION BY CRIMINALIZING THE POLITICAL PROCESS NIXON A LIFE REGNERY 633 PAGES 28 BY JONATHAN AITKEN REMINDS US THAT IT WAS NEVER NICE WHEN RICHARD M NIXON ARRIVED AS A NEW CONGRESSMAN IN 1947 THERE WERE TWO VERY POWERFUL ARBITERS OF POLITICAL CULTURE THE OLD EASTERN ESTABLISHMENT JUST BEGINNING ITS NOWCOMPLETE DECLINE AND THE PRINT AND BROADCAST MEDIA WITH THEIR LIBERAL DOGMATISM JUST BEGINNING THEIR NOWCOMPLETE RISE EVENTS PLACED NIXON IMMEDIATELY AT WAR WITH BOTH HE CAME TO CONGRESS BY BEATING A LIBERAL ICON JERRY VOORHIS HEIR TO THE NASH MOTOR FORTUNE CONSIDERED BY YALE CLASSMATES AND FELLOW NEW DEALERS AS A POLITICAL SAINT NIXON GAINED FAME BY EXPOSING ALGER HISS IMPECCABLE FOREIGN SERVICE WASP AND FAVORITE SOURCE OF THE PRESS HE THEN RAN FOR THE SENATE AGAINST HELEN DOUGLAS A RICH BARNARD GRAD HOLLYWOOD STAR AND LIBERAL ACTIVIST SHE HAD ENTERED CONGRESS UNDER THE SPONSORSHIP OF HER FRIEND ELEANOR ROOSEVELT AND BECAME ONE OF ITS MOST LIBERAL MEMBERS SHE EXPECTED AN EASY RIDE TO THE SENATE NIXON THE UNSOCIALLYREGISTERED ANTICOMMUNIST NOW PROVOKED SERIOUS CONCERN IN THE GEORGETOWN SALONS AND EDITORIAL BOARDROOMS AND FACED THEIR FULL FURY IN THE SENATE CAMPAIGN IT WAS BY ANY STANDARD A BITTER CAMPAIGN IN WHICH NATIONAL GROUPS OF EXTREME VIEWS BECAME INVOLVED LEFT AND RIGHT NIXON GAVE AS GOOD AND PERHAPS BETTER THAN HE GOT RECEIVING FROM DOUGLAS THE FAMOUS EPITHET TRICKY DICK AND FROM HIS FRIEND JOHN F KENNEDY A LARGE CAMPAIGN CONTRIBUTION BEATING DOUGLAS AND KICKING SAND IN THE FACE OF THE LIBERAL ESTABLISHMENT FOR THE THIRD TIME PLACED HIM SQUARELY ON ITS ENEMIES LIST ESPECIALLY THAT OF THE WASHINGTON POST EDITORIAL DEFENDER OF HISS IDEOLOGY AND PURE SNOBBERY WERE BEHIND THIS IN EQUAL MEASURE IN THE HEARINGS HISS HAD SNIFFED AT NIXON I ATTENDED HARVARD LAW SCHOOL I BELIEVE YOURS WAS WHITTIER IT WAS DUKE AVERELL HARRIMAN SNUBBED HIM AT A GEORGETOWN DINNER PARTY ANNOUNCING I WILL NOT EAT DINNER WITH THAT MAN EVEN ALICE ROOSEVELT LONGWORTH SAID SUCH A COMMON LITTLE MAN WITH THE DETACHED EYE OF A FOREIGNER MR AITKEN PROVIDES THE MOST CONVINCING EXPLANATION OF THE COMPLEXITIES OF OUR MOST CONTROVERSIAL MODERN PRESIDENT THE FIRST FULLY SOURCED BIOGRAPHY BY A NONNIXONHATER IT IS BALANCED BUT DECIDEDLY FRIENDLY MR AITKEN IS HIMSELF A COLORFUL STATESMANWRITER CURRENTLY A JUNIOR MINISTER IN THE BRITISH GOVERNMENT HE HAD LENGTHY ACCESS TO THE LATE PRESIDENT AND TO MUCH NEW PRIVATE MATERIAL HE ALSO INTERVIEWED JUST ABOUT EVERY CONTEMPORARY GREAT AND SMALL FRIEND AND FOE THE RESULT IS A FASCINATING NEW TELLING OF THE AMAZING SAGA OF THE QUAKER FARM BOY WHOSE TUMULTUOUS CAREER WILL BE WRITTEN ABOUT FOR CENTURIES TO COME FROM HIS ARRIVAL IN WASHINGTON FOREIGN POLICY WAS HIS LOVE AND FROM 1947 UNTIL HIS RECENT DEATH HE CONDUCTED A LIFELONG TUTORIAL OF READING DEBATING VISITING DINING AND TELEPHONING THE LEADING THINKERS AND DOERS IN THE WORLD OF FOREIGN POLICY HE BECAME A GENUINE INTELLECTUAL AND CONCEPTUAL STRATEGIST OF THE REALIST SCHOOL A STRATEGIC GENIUS IN THE WORDS OF HUGH SIDEY IT IS HARD TO DISAGREE WITH MR AITKEN THAT HE WAS THE MOST INNOVATIVE AND SUCCESSFUL FOREIGN POLICY PRESIDENT OF THE TWENTIETH CENTURY BUT EVEN HERE HE WAS NOT PERFECT MR AITKEN GUSHES OVER THE SERIES OF AGREEMENTS WITH THE SOVIETS THAT CONSTITUTED PRESIDENT NIXON'S DETENTE POLICY THE ABM TREATY THE TRADE CREDITS AND HIS ABANDONMENT OF NUCLEAR SUPERIORITY ON THIS MR AITKEN IS WOEFULLY MUDDLED HE PRAISES NIXON FOR FOLLOWING SEN WILLIAM FULBRIGHT'S ADVICE TO DROP THE GOVERNMENT DOCTRINE OF NUCLEAR SUPERIORITY IN FACT THE MCNAMARA/JOHNSON POLICY WAS THE MINDLESS MUTUAL ASSURED DESTRUCTION WHICH NIXON REJECTED IN FAVOR OF A COUNTERFORCE DOCTRINE COSMETICALLY LABELED SUFFICIENCY AND THE BEST THAT CAN BE SAID ABOUT THE SALT I AGREEMENTS AND THE GENEROUS TRADE CREDITS NEGOTIATED IN THE NIXON ERA IS THAT THEY WEREN'T AS BAD AS THE LATER STRATEGIC DEALS OF FORD AND CARTER WITH REGARD TO NIXON'S RELATIONSHIP WITH HENRY KISSINGER MR AITKEN CITES MACHIAVELLI THAT ONLY GREAT PRINCES HAVE STRONG ADVISERS MR KISSINGER HAD PROVED TOO BRILLIANT TOO INTIMIDATING FOR LATER PRESIDENTS BUT NIXON HIRED HIM FOR THOSE VERY STRENGTHS AND THEIR CREATIVE INTERACTION WAS MUTUALLY REINFORCING AS WAS SUGGESTS MR AITKEN THE MUTUAL REINFORCEMENT OF THEIR DARKER SIDES THERE WAS A STRANGE DUALITY IN GENERAL IN NIXON'S USE OF ADVISERS WHILE PRESIDENT FOR SUBSTANTIVE POLICY HE LIKED HEAVYWEIGHTS WHO WOULD ARGUE AND STIMULATE HIM KISSINGER DANIEL PATRICK MOYNIHAN GEORGE SCHULTZ JOHN CONNALLY FOR POLITICS AND ADMINISTRATION HE LIKED SYCOPHANTS JOHN DEAN CHUCK COLSON THE BEAVER PATROL IT WAS THIS WEAKNESS THAT BROUGHT HIM DOWN THE BOOK'S FAIRNESS AND OCCASIONAL CHEERLEADING WILL HORRIFY THOSE WHO SAVOR THE DEMONIZATION OF NIXON BUT THERE IS NO ATTEMPT HERE TO GLOSS OVER THE FAILURES AND TRICKS OR IGNORE WHAT MR AITKEN CALLS NIXON'S DARKER SIDE REGARDING WATERGATE THE AITKEN JUDGMENT IS STERN THE PRESIDENT'S ROLE IN THIS SELFINFLICTED CRISIS WAS UNDOUBTEDLY AN IGNOBLE ONE EVEN THE MOST GENEROUS EXPLANATIONS FOR HIS CONDUCT DO NOT BRING HIM EXCULPATION HIS PARTICIPATION IN THE COVERUP WAS PROFOUND HAVING ITS ORIGINS IN THE LONGSTANDING CONFLICTS OF HIS CHARACTER BUT THE BASER ELEMENTS OF HIS CAREER BECOME FAR MORE UNDERSTANDABLE UNDER MR AITKEN'S ILLUMINATION WITHOUT EXCUSING HIS SINS HE DEMONSTRATES THAT NIXON WAS IN FACT UNFAIRLY TREATED AND MEANLY TARGETED BY POWERFUL GROUPS THROUGHOUT HIS CAREER THE EARLY NIXON REACTION WAS A SORT OF BOY SCOUT BEWILDERMENT BUT AFTER WATCHING THE DIRTY TRICKS OF THE KENNEDY BROTHERS AND THE BRASS KNUCKLES OF LYNDON JOHNSON HE CONCLUDED THAT THAT WAS HOW THE GAME WAS PLAYED AND JOINED IN HE NEVER DID GRASP THAT LIBERALS AND CONSERVATIVES ARE HELD TO VERY DIFFERENT STANDARDS BY THE MEDIA AS CLARENCE THOMAS AND GENNIFER FLOWERS CAN TESTIFY BUT IF IN FACT LIVING WELL IS THE BEST REVENGE NIXON ACHIEVED IT HIS REPUTATION WAS RESTORED BY THE SHEER QUALITY AND WEIGHT OF HIS STRATEGIC AND FOREIGNPOLICY WRITING AFTER LEAVING OFFICE EIGHT BESTSELLERS BUT HIS GREATEST VINDICATION WAS IN LIVING LONG ENOUGH TO BE PROVED RIGHT BY EVENTS ON THE GREAT ISSUE OF HIS TIME THE COLD WAR FURTHERMORE AND THIS MUST HAVE BEEN EXQUISITELY DELICIOUS HIS MOST VOCAL CRITICS HAVE BEEN PROVED HUMILIATINGLY WRONG WHATEVER TRICKINESS THERE MAY OR MAY NOT HAVE BEEN IN OTHER MATTERS NIXON'S VIEWS ON SOVIET RELATIONS NEVER WAVERED FOR NEARLY 40 YEARS IN AND OUT OF OFFICE HE WAS COMMITTED TO MUSCULAR MILITARY CONTAINMENT AND FORWARD STRATEGY WHILE PURSUING DIPLOMATIC MANEUVERS SUCH AS HIS CHINA INITIATIVE IN THE REAL WAR 1980 HE DECRIED THE DEFEATISM OF THE CARTER POLICIES AND LAID OUT A BLUEPRINT FOR THE REAGAN YEARS WHICH WAS IN FACT FOLLOWED IN THE REAL PEACE IN 1984 HE HELD OUT THE PROSPECT OF WINNING THE COLD WAR WHICH INDEED CAME TO PASS MEANWHILE HIS CRITICS WERE WRITING BILGE ABOUT AMERICAN MALAISE AND THE STRONG SOVIET ECONOMY MR LEHMAN WAS SECRETARY OF THE NAVY IN THE REAGAN ADMINISTRATION 9404260071 940426 LEISURE & ARTS MIA ENTERS THE PIANO WARS BY RAYMOND SOKOLOV NEW YORK MIA CHUNG CAME ONSTAGE IN A GREEN GOWN SMALL BUT MOVING BRISKLY SHE IS NOT A HOUSEHOLD WORD EXCEPT IN A FEW HOUSEHOLDS BUT ALL OF THEM HAD FOLLOWED HER TO CARNEGIE HALL TO HEAR HER PLAY THE PIANO AT HER RECENT NEW YORK DEBUT HER HUSBAND JOHN YEE WAS THERE UP IN FRONT ON THE RIGHT OF CARNEGIE'S ORNATE 268SEAT WEILL RECITAL HALL TAKING A UXORIOUS BREATHER FROM HIS DUTIES AS A MEDICAL RESIDENT AT CHILDREN'S HOSPITAL IN BOSTON HER NEPHEW ANDREW CHUNG 4 1/2 WAS IN BACK IN A SERIOUS COAT AND TIE MANY OF THE OTHERS WERE FAMILY MEMBERS OR FRIENDS WHO HAD CAUGHT UP WITH HER AS A PIANO PRODIGY SOLOIST WITH THE BALTIMORE SYMPHONY AT 12 OR AT HARVARD COLLEGE OR YALE GRADUATE SCHOOL OR WHILE SHE WAS EARNING A DOCTORATE AT JUILLIARD OR WHEN SHE WON THE CONCERT ARTISTS GUILD NEW YORK COMPETITION LAST YEAR ALMOST EVERYONE SAT ON THE LEFT SIDE OF THE AUDITORIUM THE BETTER TO SEE THE 29YEAROLD'S HANDS AS SHE TACKLED A PROVOCATIVELY AMBITIOUS PROGRAM LIKE DOZENS OF OTHER YOUNG MUSICIANS WHO HIRE THIS HALL EVERY YEAR MS CHUNG WAS MAKING A MAJOR CAREER MOVE IF IT WORKED SHE WOULD GET A REVIEW IN THE NEW YORK TIMES POSSIBLY EVEN A FAVORABLE ONE AND THAT WOULD GIVE HER A NUDGE UPWARD INTO THE REALLY BRUTAL JOSTLING FOR ATTENTION IN THE DENSE JUNGLE OF YOUNG PIANISTS ALL HOPING TO BREAK INTO THE SMALL ELITE OF PLAYERS WHO REALLY ARE HOUSEHOLD WORDS IN THIS HOBBESIAN STRUGGLE FOR PUBLIC NOTICE THERE ARE MANY POSSIBLE STRATEGIES MS CHUNG WHO EARNS HER LIVING AS ARTISTINRESIDENCE AND MUSIC PROFESSOR AT SMALL LIBERALARTS GORDON COLLEGE NEAR BOSTON DID NOT HESITATE TO DRAW ON THE BROAD GRASP OF THE REPERTORY THAT HER VERY SUPERIOR EDUCATION HAD GIVEN HER SHE BEGAN WITH SCHOENBERG'S SIX SMALL PIANO PIECES OF 1911 FLEETING EXPRESSIONISTIC MERCURIAL VARIOUS AND ABOVE ALL EXPERIMENTAL MUSIC WHEN HE WROTE THEM THE COMPOSER WAS INCUBATING HIS 12TONE SYSTEM IN HER PROGRAM NOTES MS CHUNG REMARKED THAT THESE EARLY PIECES POINT FORWARD TO SCHOENBERG'S PIVOTAL PIERROT LUNAIRE BUT PERHAPS WITH LESS EERIENESS HAVING POLISHED OFF THIS INTRICATE SET OF CAMEOS MS CHUNG SEGUED WITH HIGH WIT TO A LITTLEKNOWN YOUTHFUL EXPERIMENT BY AARON COPLAND PIANO VARIATIONS 1930 COPLAND THEN 30 YEARS OLD AND WITH HIS MORE CLUBBABLE AMERICAISBEAUTIFUL PHASE YET TO COME WAS LABORING UNDER THE DARK STAR OF SCHOENBERG'S FULL DODECAPHONIC MANNER AND STRAINING TO BEND IT TO HIS OWN HAPPIER GENIUS MS CHUNG COMPLETED THIS TURN TOWARD THE LIGHT WITH THE FINAL SELECTION OF THE FIRST HALF OF THE CONCERT BEETHOVEN'S JOYFUL SONATA IN G MAJOR OPUS 31 NO 1 ALTHOUGH SHE TOLD US IN HER NOTES THAT SHE MEANT THIS PIECE AS A BRIGHT CONTRAST TO WHAT HAD COME BEFORE AND THAT FOR HER ITS OUTER MOVEMENTS LIKE A GOOD JOKE INVOKE CHEERFUL LAUGHTER THE BEETHOVEN SHE PLAYED WITH SUCH VIGOR AND FORCE WAS NOT A SERENE MOZART CLONE WAITING TO FIND THE HEROIC VOLUME OF HIS MATURITY IN HER RENDITION HE WAS ALL THERE AT ONCE PURE CLASSICAL BACKGROUND GAMESOMENESS AND ROMANTIC STORM ABREWING SO BY THE INTERMISSION MS CHUNG HAD GIVEN US YOUTH IN THREE GUISES THREE COMPOSERS IN THE ACT OF FINDING THEIR FULL ADULT SELVES WHILE STILL MAKING DEFT USE OF OLDER MEN'S MUSIC WOULD THIS YOUNG AND IT WAS NOW CLEAR TECHNICALLY SUPERB PIANIST TACKLE WORKS OF MATURITY IN THE SECOND HALF AND WOULD SHE PERFORM THEM WITH A PRECOCIOUS MATURITY SHE WOULD BUT WITHOUT GIVING UP HER DEBUTANTE'S RIGHT TO CAPER DOWNRIGHT IMPISHLY WHEN SHE FOUND GOOD REASON TO TRY FIRST CAME TWO SCARLATTI SONATAS A FLAT MAJOR L 186 F MINOR L 382 LESS ROLLICKING THAN MOST EVEN INTROSPECTIVE AS MS CHUNG HAD WARNED US IN HER NOTES THE MOOD HAD SHIFTED INTO A SOULFUL GEAR AS PREPARATION FOR THAT PROFOUND STATEMENT OF BEETHOVEN'S FINAL GRANDEUR HIS LAST SONATA THE C MINOR OPUS 111 FROM PREVIOUS HEARINGS ONE KNEW MORE OR LESS WHAT TO EXPECT PROMETHEAN STRIFE AND STRAIN IN THE FIRST MOVEMENT RELEASE AND RESOLUTION IN CLOUDLESS C MAJOR IN THE CONCLUDING SECOND MS CHUNG LESS COMMITTED TO BEETHOVEN'S COPIOUS DIRECTIONS FOR LOUD AND SOFT FAST OR SLOW THAN SAY VLADIMIR FELTSMAN IN HIS FINE RECORDING OF THE PIECE FILLED THIS DEAF DYING MAN'S FAREWELL WITH GREAT WEIGHT OF EMOTION OF SADNESS OF RESIGNATION BUT THERE CAME A TIME ROUGHLY MIDWAY THROUGH THE SECOND MOVEMENT WHERE MS CHUNG FOUND A ROUTE TO EXULTATION AND EVEN HILARITY RIPPING THROUGH A LONG SEQUENCE OF MATCHING SYNCOPATED RUNS SHE PRESSED THE RHYTHM AND MADE IT BOUNCE HILARITY HILARITY HILARITY BUT DID SHE GO TOO FAR IN STRETCHING BEETHOVEN TOWARD BOOGIE I LOOKED CAUTIOUSLY AROUND THE AUDIENCE ALL FACES RAPT IN CONCENTRATION NO SMIRKS THEN MUCH APPLAUSE THEN TWO ENCORES RACHMANINOFF PRELUDES BROUGHT US FULL CIRCLE BACK INTO THE 20TH CENTURY IN THE TIMES WEDGED BETWEEN SLIGHTING REVIEWS OF OTELLO AND TOSCA AT THE METROPOLITAN OPERA WAS A FULLBORE RAVE BY ALLAN KOZINN FOR MS CHUNG'S UNCOMMONLY INSIGHTFUL INDIVIDUALISTIC AND LIVELY CONCERT ANDREW CHUNG LIKED THE CONCERT TOO PREFERRING THE SCHOENBERG BECAUSE IT WAS FUNKY HIS AUNT WENT BACK HOME TO MASSACHUSETTS TO GET READY FOR HER FIRST RECORDING AN ALBUM OF BEETHOVEN SONATAS THAT CHANNEL CLASSICS WILL RELEASE LATER IN THE YEAR 9404260070 940426 INTERNATIONAL BRIEF NISSAN MOTOR CO TOKYO AUTO MAKER DEVELOPS NEW HIGH EFFICIENCY ENGINE NISSAN MOTOR CO SAID IT HAS DEVELOPED A 15LITER LEANBURN ENGINE THAT ACHIEVES LOW FUEL CONSUMPTION OF 205 KILOMETERS PER LITER ABOUT 49 MILES PER GALLON IN A JAPANESE TEST MODE IN A RELEASE THE COMPANY SAID THE GA15DE ENGINE ACHIEVES THAT RESULT IN JAPAN'S 1015 TEST MODE WHEN MOUNTED IN A TWOWHEELDRIVE VEHICLE WITH A MANUAL TRANSMISSION NISSAN PLANS TO BEGIN USING THE LEANBURN ENGINE IN A MODEL SCHEDULED FOR RELEASE IN THE NEAR FUTURE IN ADDITION TO THE HIGH FUEL EFFICIENCY THE NEW ENGINE MAKES USE OF ASSOCIATED TECHNOLOGIES SUCH AS FRICTIONREDUCING MEASURES FOR IMPROVED RESPONSIVENESS AND A COMPACT COMBUSTION CHAMBER FOR BETTER FUEL EFFICIENCY AS A RESULT THE ENGINE CAN SHARE THE SAME BLOCK CYLINDER HEAD PISTON ASSEMBLY AND OTHER MAJOR PARTS WITH THE CONVENTIONAL GA15DE ENGINE NISSAN SAID 9404260069 940426 BUSINESS BRIEF CULBRO CORP ELI WITT UNIT IS COMBINED WITH SIX DIVISIONS OF NCC CULBRO CORP COMPLETED THE COMBINATION OF ITS ELI WITT CO WITH SIX SOUTHERN DIVISIONS OF NCC LP BOTH INVOLVED IN THE WHOLESALE DISTRIBUTION OF TOBACCO CANDY GROCERY AND SUNDRY PRODUCTS NCC IS A PRIVATELY OWNED COMPANY BASED IN ATLANTA TERMS OF THE SALE WEREN'T DISCLOSED CULBRO SAID AS A RESULT OF THE TRANSACTION ELI WITT'S ANNUAL REVENUE WILL BE AROUND 2 BILLION ALSO A SUBSIDIARY OF MORGAN STANLEY LEVERAGED EQUITY FUND II LP ACQUIRED ABOUT 40 OF ELI WITT'S COMMON EQUITY NEW YORKBASED CULBRO'S BUSINESSES ALSO INCLUDE CIGARS INDUSTRIAL PRODUCTS REAL ESTATE AND LANDSCAPE NURSERY STOCK 9404260068 940426 TECHNOLOGY BRIEF MICRONICS COMPUTERS INC NET INCOME PLUNGED 89 DURING FISCAL 2ND QUARTER MICRONICS COMPUTERS INC SAID ITS FISCAL SECONDQUARTER NET INCOME PLUNGED 89 BECAUSE OF CONSUMER UNCERTAINTY AND PRODUCTSUPPLY PROBLEMS CONNECTED WITH INTEL CORP'S NEW PENTIUM MICROPROCESSORS MICRONICS SAID ITS EARNINGS FOR THE QUARTER ENDED MARCH 31 FELL TO 326000 OR THREE CENTS A SHARE FROM 31 MILLION OR 28 CENTS A SHARE A YEAR EARLIER SALES FELL 28 TO 36 MILLION MICRONICS WHICH MAKES CIRCUIT BOARDS AND OTHER COMPUTER COMPONENTS SAID BUYERS WERE CONFUSED BY THE MARKET TRANSITION FROM PERSONAL COMPUTERS POWERED BY OLDER AND SLOWER 486BASED MICROPROCESSORS TO THE SPEEDIER PENTIUM CHIPS MICRONICS IN FREMONT CALIF MAKES BOTH 486 AND PENTIUMBASED PRODUCTS 9404260067 940426 BUSINESS BRIEF CLARK EQUIPMENT CO FIRSTPERIOD PROFIT SOARED EARNINGS LIFT STOCK BY 16 CLARK EQUIPMENT CO'S STOCK PRICE JUMPED 16 AFTER THE EQUIPMENT MANUFACTURER REPORTED THAT ITS FIRSTQUARTER EARNINGS MORE THAN TRIPLED IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CLARK CLOSED AT 66625 UP 9125 CLARK BASED IN SOUTH BEND IND REPORTED NET INCOME OF 269 MILLION OR 154 A SHARE COMPARED WITH 88 MILLION OR 50 CENTS A SHARE IN THE YEAREARLIER QUARTER LAST YEAR'S RESULTS ALSO INCLUDED A GAIN RELATED TO AN ACCOUNTING CHANGE OF 62 MILLION OR 35 CENTS A SHARE SALES FOR THE QUARTER TOTALED 2454 MILLION UP 23 FROM THE YEAREARLIER 1997 MILLION THE COMPANY SAID THE EARNINGS INCREASE REFLECTED IMPROVED SALES IN BOTH NORTH AMERICA AND IN EUROPE WHERE SALES WERE SLUGGISH LAST YEAR NEW ORDERS JUMPED TO 2956 MILLION FOR THE QUARTER UP FROM 2155 MILLION A YEAR EARLIER THE EARNINGS BROUGHT A STRONG REACTION FROM WALL STREET WHERE ANALYSTS WERE EXPECTING EARNINGS OF ABOUT 65 CENTS A SHARE TIMING IS EVERYTHING SAID JOHN MACKIN AN ANALYST WITH MORGAN STANLEY & CO ADDING THAT CLARK'S STOCK PRICE BENEFITED FROM A BRIEF UPTURN AMONG VOLATILE CYCLICAL STOCKS 9404260066 940426 LETTERS TO THE EDITOR VETERANS SHOULD MAKE GOOD ENTREPRENEURS YOUR MARCH 30 PAGEONE ARTICLE OUT AND DOWN PAINTED A REALISTIC PICTURE OF MILITARY RETIREES' JOB PROSPECTS BUT SMALLBUSINESS OWNERSHIP WAS NOT MENTIONED AS AN ALTERNATIVE TO LOOKING FOR A JOB THE PROBLEMS THAT DEPARTING MILITARYSERVICE MEMBERS FACE ARE MANY AND CAN BE VERY DISTURBING THE INDIVIDUALS YOU MENTIONED HAVE VERY STRONG ENTREPRENEURIAL CHARACTERISTICS THESE ATTRIBUTES CAN BE FOUND IN MANY MILITARYSERVICE MEMBERS THERE ARE ABOUT FOUR MILLION VETERANOWNED BUSINESSES NATIONWIDE THE US SMALL BUSINESS ADMINISTRATION'S OFFICE OF VETERANS AFFAIRS PARTICIPATES IN MOST TRANSITION ASSISTANCE PROGRAMS TAP AND THE ARMY CAREER AND ALUMNI PROGRAMS ACAP LOCATED ON MILITARY INSTALLATIONS THROUGH THESE PROGRAMS WE ARE ABLE TO GET SMALL BUSINESS OWNERSHIP INFORMATION TO A WIDE VARIETY OF SERVICE MEMBERS AS THE REGIONAL VETERANS AFFAIRS OFFICER FOR THE SBA IN DENVER I DEVELOPED TRAINING BEYOND TAP AND ACAP THE TRAINING IS USUALLY 18 HOURS AND FREE TO MILITARY VETERANS THEY LEARN HOW TO DEVELOP BUSINESS PLANS MARKETING STRATEGIES AND DEAL WITH FINANCES MANAGEMENT LEGAL AND INSURANCE ISSUES NUMEROUS SBA EDUCATIONAL OUTREACH PROGRAMS AND LOAN PROGRAMS FIT JUST ABOUT ALL SMALLBUSINESS NEEDS 9404260065 940401 LEISURE & ARTS BOOKSHELF CHICAGO'S JEREMIAH RAILS AT OUR BABYLON BY BRUCE BAWER THANKS TO A BLACK NEW YORK TIMES WRITER NAMED BRENT STAPLES SAUL BELLOW HAS BEEN MAKING HEADLINES LATELY IN A NEW MEMOIR PARALLEL TIME WHICH WAS EXCERPTED RECENTLY IN THE SUNDAY TIMES MAGAZINE MR STAPLES RECALLS HOW AS A GRADUATE STUDENT IN CHICAGO HE STALKED THE NOBEL LAUREATE AND IMAGINED ATTACKING HIM THOUGH HE ADMIRED MR BELLOW MR STAPLES ABHORRED THE ANTIBLACK ATTITUDES OF SOME OF HIS CHARACTERS WHICH HE FELT MUST REFLECT RACISM ON THE NOVELIST'S PART THE EXCERPT IGNITED CONTROVERSY CRITICS RIGHTLY CHIDED MR STAPLES FOR CHILDISHLY CONFUSING AN AUTHOR WITH HIS CHARACTERS AND FOR INTRODUCING A NOTE OF PHYSICAL THREAT INTO A CULTURAL DISCUSSION YET MR STAPLES'S POINT HOWEVER RUDELY EXPRESSED WAS NOT COMPLETELY INVALID MOST OF MR BELLOW'S PROTAGONISTS ARE QUITE FRANKLY AUTHORIAL ALTER EGOS MALE JEWISH INTELLECTUALS WHO SHARE HIS VIEWS ON A VARIETY OF SUBJECTS AND WHO ALSO SPOUT RACIST REMARKS NOT ATYPICAL OF HIS FICTION IS MR SAMMLER'S PLANET 1969 IN WHICH THE TENSION BETWEEN AN ELDERLY JEW AND A YOUNG BLACK PICKPOCKET IS PLAINLY MEANT TO EMBODY THE CONTRAST CENTRAL TO ALL MR BELLOW'S WORK BETWEEN A DIGNIFIED REFLECTIVE APPROACH TO LIFE THAT HE ASSOCIATES WITH THE WESTERN TRADITION AND A PRIMITIVE UNFETTERED APPROACH THAT HE LINKS TO THE DECAY OF CIVILIZED VALUES IT IS HARD TO READ THE NOVEL WITHOUT FEELING THAT HE HAS USED BLACKS TO SYMBOLIZE THAT DECAY TO SAY THAT ONE FINDS THIS SYMBOLISM DISTRESSING IS NOT TO DENY THAT SUCH DECAY EXISTS THAT IT IS DEPLORABLE AND THAT MR BELLOW CAN WRITE ABOUT IT BRILLIANTLY INDEED TO READ HIS NEW COLLECTION OF ESSAYS AND INTERVIEWS IT ALL ADDS UP FROM THE DIM PAST TO THE UNCERTAIN FUTURE VIKING 384 PAGES 2495 IS TO SEE A TRULY ELOQUENT CRITIQUE OF CONTEMPORARY AMERICAN SOCIETY AT TIMES TAINTED BY AN INCLINATION TO SEE YESTERDAY AS ALL GOOD AND TODAY AS ALL BAD AND TO IDENTIFY YESTERDAY WITH PEOPLE LIKE HIMSELF AND TODAY WITH PEOPLE LIKE WELL BRENT STAPLES THE SUBJECTS OF THESE PIECES SOME DATING BACK TO THE EARLY 1960S RANGE FROM MOZART TO KHRUSHCHEV FROM THE KENNEDY WHITE HOUSE TO THE SIXDAY WAR FROM JOHN BERRYMAN TO YELLOW KID WEIL YET WHATEVER THE OSTENSIBLE TOPIC IT ALWAYS LEADS MR BELLOW TO LARGER REFLECTIONS ON THE HUMAN CONDITION RECALLING HIS ROUGHANDTUMBLE YOUTH ON CHICAGO'S MEAN STREETS HE STRESSES THE IMPORTANCE OF ART AND CULTURE TO INNERCITY CHILDREN IT IS IMPERATIVE THAT THEY SHOULD HAVE A REALITY FINER THAN THOSE STREETS SOMETHING IMPRACTICAL SOMETHING GRATUITOUS SOMETHING THAT DOES NOT DEFRAUD EXPLOIT OR ADD MORE PHANTOMS TO A LIFE ALREADY FILLED WITH PHANTOMS SEDUCTIONS AND CHEATS MR BELLOW'S ABIDING PLAINT IS THAT MASSCULTURE AMERICA HAS LOST TOUCH WITH ART WHICH ATTEMPTS TO FIND IN THE UNIVERSE WHAT IS FUNDAMENTAL ENDURING ESSENTIAL AND WHICH LEADS TO WONDERFUL AND TO MY MIND SACRED STATES OF THE SOUL YET SUCH STATES ARE HARD TO ACHIEVE NOWADAYS BECAUSE WE ARE ALL DISTRACTED BY TV BY THE TORRENT OF NEWS AND BY OUR ABSORPTION IN CRISIS CHATTER ABOUT THIS WEEK'S HOT ISSUES THE MEDIA THAT PRESUMABLY SEEK TO KEEP US INFORMED ABOUT THE DOINGS OF OUR FELLOW HUMAN BEINGS ARE IN FACT FORCES OF DEHUMANIZATION THAT DISINCLINE US TO THINK AMPLY ABOUT WHAT WE ARE THOUGH MR BELLOW LIKE HIS LATE FRIEND ALLAN BLOOM HAS ROMANTIC ILLUSIONS ABOUT OUR GREATGRANDPARENTS' INTELLECTUAL AND ARTISTIC SERIOUSNESS THERE IS MUCH TRUTH IN HIS RUMINATIONS ON THE DECLINE OF MANNERS THE DISPLACEMENT OF ART BY ENTERTAINMENT AND OF EDUCATION BY CAREER TRAINING AND THE RISE OF CRIME PUBLIC INDECENCY DISPOSABLE CULTURE AND PC GROUPTHINK IF SOME OF HIS FORMULATIONS SOUND QUAINT IT IS LARGELY A MEASURE OF HOW TRAGICALLY FAR WE HAVE COME FROM A WORLD WHERE PEOPLE SPOKE EARNESTLY OF THE DEVELOPMENT OF CHARACTER THE NOURISHMENT OF SOULS AND THE LIFE OF THE MIND A CERTAIN NOSTALGIA THEN IS IN ORDER YET MR BELLOW INSISTS TOO OFTEN ON PAINTING WITH AN EXCESSIVELY BROAD BRUSH HE PRAISES VIRTUALLY NO ASPECT OF THE AGE OF THE INFORMATION SUPERHIGHWAY EVEN A DIEHARD ADMIRER OF THE GREAT BOOKS MAY FIND HIMSELF WANTING TO EXPLAIN TO MR BELLOW THAT COMPUTERS AND PERHAPS EVEN TELEVISION HAVE THEIR CULTURAL AND EDUCATIONAL MERITS THE SON OF A FRIEND OF MINE ATTENDS HIGH SCHOOL IN A GEORGIA COUNTY NOTED FOR ITS HISTORY OF KKK ACTIVITY SOME OF HIS FRIENDS' PARENTS ARE VIRULENT RACISTS THIS YOUNG MAN EXPLAINED RECENTLY BUT HIS FRIENDS AREN'T WHY THE MAIN REASON HE SAID WAS MTV SUCH REALITIES WIN THE FIN DE SIECLE NO POINTS FROM MR BELLOW WHO HARKS BACK FONDLY TO THE DAYS WHEN PEOPLE UNINHIBITEDLY HURLED ETHNIC SLURS THE ABSENCE OF AN IDEA OF DEFAMATION WAS VERY LIBERATING EVERYTHING WAS OUT IN THE OPEN THE DISTURBING ASSUMPTION HERE IS THAT BIGOTRY CANNOT BE ELIMINATED ONLY PAPERED OVER AND THE TRUTH MR BELLOW EVADES IS THAT BIGOTRY ENTAILS NOT ONLY WORDS BUT DEEDS THOSE GOOD OLD DAYS AFTER ALL WERE ALSO THE DAYS OF LYNCH MOBS READING THIS BOOK ONE SOMETIMES FINDS ONESELF SHARING MR STAPLES'S MIXTURE OF ESTEEM FOR AND EXASPERATION WITH MR BELLOW WHO EMBODIES BOTH THE VERY NOBLEST AND SOME OF THE LESS WORTHY ASPECTS OF A WANING SOCIAL AND CULTURAL OUTLOOK SEE RELATED LETTER LETTERS TO THE EDITOR BELLOW'S CHARACTERS AREN'T DOPPELGANGERS WSJ APRIL 26 1994 9404010063 YY94 MM04 9404260062 940426 CLINTON DECIDES NO NEW TAXES FOR WELFARE POLITICAL RISKS CAUSE HIM TO FAVOR BUDGET CUTS PLAN STRIPPED TO CORE BY RON SUSKIND STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON HAS DECIDED AGAINST NEW TAXES TO PAY FOR WELFARE REFORM FAVORING A STRIPPEDDOWN PROGRAM THAT WOULD BE FUNDED SOLELY THROUGH BUDGET CUTS THE DECISION BY MR CLINTON WHITE HOUSE OFFICIALS SAY WAS DRIVEN BY THE POLITICAL RISKS OF FLOATING ANY TAXES TO HELP WELFARE RECIPIENTS GAIN JOBS AND INDEPENDENCE FOR GAMBLING ESTABLISHMENTS THE PRESIDENT'S DECISION IS A RELIEF A NEW TAX ON THEIR NET REVENUES WHICH WOULD HAVE BROUGHT IN 31 BILLION OVER FIVE YEARS WAS CONSIDERED CRUCIAL TO FUNDING WELFARE REFORM AS LATE AS LAST WEEK SEPARATELY MR CLINTON HAS DECIDED TO ENDORSE LEGISLATION THAT WOULD REMOVE THE SOCIAL SECURITY ADMINISTRATION FROM THE DEPARTMENT OF HEALTH AND HUMAN SERVICES AND MAKE IT AN INDEPENDENT AGENCY THE SENATE APPROVED SUCH LEGISLATION LAST MONTH A SIMILAR BILL IS PENDING IN THE HOUSE WHILE THE CORE ELEMENTS OF MR CLINTON'S WELFARE PLAN WHICH IS BASED ON A TWOYEAR TIME LIMIT ON BENEFITS REMAIN INTACT THE PRESIDENT HAS DECIDED THAT CHILD CARE FOR THE WORKING POOR SUPPORT OF POOR TWOPARENT FAMILIES AND PROVISIONS FOR EXPERIMENTAL PILOT PROGRAMS THAT MIGHT HELP FINETUNE REFORM ARE LARGELY UNAFFORDABLE THE PRESIDENT'S DECISION MADE IN THE PAST FEW DAYS ENDS ALMOST TWO MONTHS OF ADMINISTRATION INFIGHTING OVER HOW SWEEPING A WELFARE PLAN OUGHT TO BE AND HOW TO PAY FOR IT THOSE FEARING THAT MR CLINTON'S POLITICALLY POTENT CAMPAIGN PLEDGE TO END WELFARE AS WE KNOW IT WOULD LOOK HOLLOW WITH SUCH A MODEST WELFARE PROGRAM WERE ULTIMATELY OVERWHELMED BY BUDGET HAWKS AND NEW DEMOCRATS WHO BELIEVE A TOUGH NOFRILLS PACKAGE WOULD FULFILL THE PLEDGE THOUGH SOME LOOSE ENDS REMAIN MR CLINTON'S PROGRAM IS EXPECTED COST 95 BILLION OVER FIVE YEARS LESS THAN ALMOST ANYONE IN THE ADMINISTRATION HAD EXPECTED PARAMETERS APPEARED TO HAVE BEEN SET LAST MONTH AT A CABINET MEETING WHERE THE PRESIDENT WAS PRESENTED WITH LISTS OF VARIOUS PROPOSALS AND COST ESTIMATES THAT LED DOWN TWO PATHS A 106 BILLION PROGRAM WITH FEW EXTRAS AND A CADILLAC PROGRAM COSTING 184 BILLION OVER FIVE YEARS WITH MANY PROVISIONS WELFARE EXPERTS HAVE BEEN PINING FOR SINCE THE MID1980S IT WAS THE PRESIDENT HIMSELF WHO PUSHED THE BAR EVEN LOWER AS IT BECAME CLEAR LAST WEEK THAT A VARIETY OF HASTILY DRAWNUP CUTS INCLUDING A LIMIT ON TAX DEFERRALS ON ANNUITIES COULD BE SUBSTITUTED FOR TWOTHIRDS OF THE EXPECTED REVENUE FROM A GAMBLING TAX YET WITH THE 106 BILLION PROGRAM STILL A BILLION DOLLARS SHORT OF FUNDING THE PRESIDENT DECIDED TO JUST CUT HIS PROGRAM ONE LAST TIME TO FIT THE FUNDING UNDER THE PRESIDENT'S PLAN CHILD CARE FOR THE WORKING POOR A KEY PROVISION IN KEEPING WELFARE ROLLS FROM GROWING AND THAT WAS ORIGINALLY EXPECTED TO COMMAND ABOUT 5 BILLION OVER FIVE YEARS WOULD BE FUNDED AT 15 BILLION EVEN AT THAT LEVEL ADMINISTRATION OFFICIALS WHO SUPPORT SUCH A REDUCTION EMPHASIZE SUCH SPENDING WOULD MORE THAN DOUBLE BY THE DECADE'S END FROM THE CURRENT 300 MILLIONAYEAR FUNDING THROUGH THE DEPARTMENT OF HEALTH AND HUMAN SERVICES STILL WELFAREREFORM ADVOCATES ARE DISPIRITED THIS REFLECTS THE CONTINUED ABILITY OF WELLHEELED SPECIAL INTERESTS TO KNOCK A REASONABLE PROPOSAL CHILD CARE FOR THE WORKING POOR OFF THE TABLE SAID ROBERT GREENSTEIN DIRECTOR OF THE CENTER FOR BUDGET AND POLICY PRIORITIES AND AN ADMINISTRATION CONFIDANT REFERRING TO A FURIOUS LOBBYING CAMPAIGN BY CASINOS SO NOW MANY WORKING POOR FAMILIES PLAYING BY THE RULES STAYING OFF WELFARE BUT UNABLE TO GET ADEQUATE CHILD CARE WILL SLIP ONTO THE WELFARE ROLLS AN IMPORTANT PREVENTIVE MEASURE IS LOST ANOTHER SLASHED INITIATIVE IS THE EXTENSION OF WELFARE TO TWOPARENT FAMILIES WHOSE INCOME IS LOW ENOUGH TO QUALIFY FOR BENEFITS ORIGINALLY EXPECTED TO COST 2 BILLION OVER FIVE YEARS THOUGH WELFARE'S EMPHASIS ON SINGLE WOMEN HAS BEEN SHOWN TO ENCOURAGE FAMILY BREAKUPS ONLY 500 MILLION WITH THE FEDERAL GOVERNMENT MATCHING STATE SPENDING IS NOW EARMARKED FOR TWOPARENT BENEFITS ALSO FUNDING FOR VARIOUS PILOT PROGRAMS THE RESULTS OF WHICH WOULD HELP FINETUNE WELFARE REFORM IN THE COMING DECADE WERE CUT TO 500 MILLION OVER FIVE YEARS FROM AN ORIGINAL ESTIMATE OF 15 BILLION THE FOUNDATION OF THE PRESIDENT'S PLAN WAS CHANGED LITTLE IN THE LATEST ROUND OF ALTERATIONS THE TWO YEARS OF EDUCATION JOB TRAINING AND PLACEMENT FOR WELFARE RECIPIENTS BEFORE BENEFITS RUN OUT WILL BE FUNDED AS ANTICIPATED THE SOCALLED WORK PROGRAM FOR THOSE UNABLE TO FIND JOBS BY THE TWOYEAR LIMIT WILL ACTUALLY BE ACCELERATED IT IS NOW EXPECTED THAT 300000 PEOPLE TWICE WHAT WAS PLANNED FOR AS LATE AS LAST WEEK WILL EXCHANGE COMMUNITY WORK FOR WAGES BY 2000 ADMINISTRATION OFFICIALS WHO FAVORED A LEANER PROGRAM POINTED TO A REPORT ISSUED YESTERDAY BY THE NATIONAL COMMISSION ON EMPLOYMENT POLICY AN INDEPENDENT FEDERAL AGENCY THAT ASSESSES EMPLOYMENT ISSUES THE REPORT SHOWED THAT THE LABOR DEPARTMENT'S VOLUNTARY NOFRILLS JOBTRAINING PROGRAM BOOSTED 16 OF WELFARE RECIPIENTS OUT OF POVERTY IN THEIR FIRST YEAR OF EMPLOYMENT DURING THE MID1980S THIS REPORT SHOWS THAT WE ALREADY KNOW HOW TO MOVE PEOPLE FROM WELFARE TO WORK SAID BRUCE REED A PRESIDENTIAL DOMESTICPOLICY ADVISER WHO OVERSEES WELFARE REFORM AND REMEMBER THESE RESULTS CAME WITHOUT THE MANY CHANGES INCLUDED IN OUR REFORM PACKAGE THAT MAKES WORK MORE ATTRACTIVE THAN WELFARE THE IDEA OF AN INDEPENDENT SOCIAL SECURITY ADMINISTRATION HAS BEEN PUSHED FOR YEARS BY SEN DANIEL MOYNIHAN ACCORDING TO SOME OFFICIALS MR CLINTON'S DECISION TO BACK THE PLAN IS PART OF AN EFFORT TO PLEASE THE NEW YORK DEMOCRAT AS SENATE FINANCE COMMITTEE CHAIRMAN MR MOYNIHAN IS AN INSTRUMENTAL PLAYER IN THE HEALTHCARE DEBATE BUT HE HAS CRITICIZED THE ADMINISTRATION FOR FOCUSING ON HEALTH CARE AT THE EXPENSE OF WELFARE HHS SECRETARY DONNA SHALALA HAS INDICATED IN THE PAST THAT SHE OPPOSED THE IDEA OF SEPARATING THE SOCIAL SECURITY ADMINISTRATION FROM HER DEPARTMENT BUT YESTERDAY THE DEPARTMENT'S CHIEF SPOKESWOMAN AVIS LAVELLE SAID WE'RE GOING TO DO WHATEVER IS POSSIBLE TO REASSURE THE PUBLIC THAT THE SOCIAL SECURITY ADMINISTRATION IS GOING TO BE THERE WHEN THEY NEED IT THIS IS A MEASURE THAT MANY PEOPLE BELIEVE WOULD PRESERVE THE SANCTITY OF THE AGENCY PROPONENTS OF THE PROPOSAL ARGUE THAT SOCIAL SECURITY WHICH PAYS 367 BILLION A YEAR IN RETIREMENT AND DISABILITY BENEFITS IS MOST LIKELY TO BE PROTECTED IF THE SOCIAL SECURITY ADMINISTRATION IS MADE A SEPARATE AGENCY HILARY STOUT CONTRIBUTED TO THIS ARTICLE 9404260061 940426 BUSINESS BRIEF PATRICK PETROLEUM CO INVESTMENT BANKER IS HIRED TO STUDY MERGER ASSET SALE PATRICK PETROLEUM CO SAID IT HIRED PETRIE PARKMAN & CO AN INVESTMENT BANKING FIRM TO LOOK INTO THE POSSIBLE MERGER OF PATRICK WITH ANOTHER COMPANY OR THE SALE OF SOME OF ITS ASSETS LAST MONTH PATRICK SAID IT WAS CONSIDERING THE ACTION IN AN EFFORT TO MAXIMIZE VALUE TO OUR SHAREHOLDERS IN LIGHT OF CONTINUING LOSSES IN FISCAL 1993 PATRICK HAD A NET LOSS OF 93 MILLION OR 63 CENTS A SHARE ON REVENUE OF 163 MILLION PATRICK PETROLEUM IS AN INDEPENDENT GAS AND OIL EXPLORATION AND PRODUCTION COMPANY BASED IN JACKSON MICH 9404260060 940426 BUSINESS BRIEF SOUTHERN PACIFIC RAIL CORP FIRSTQUARTER PROFIT POSTED FOLLOWING A YEARAGO LOSS SOUTHERN PACIFIC RAIL CORP CITING NEW COST CONTROL METHODS AND IMPROVED OPERATING METHODS REPORTED FIRSTQUARTER PROFIT OF 9 MILLION OR SIX CENTS A SHARE COMPARED WITH A YEARAGO LOSS OF 1107 MILLION OR 113 A SHARE WE'RE OFF TO A GOOD START IN 1994 SAID EDWARD MOYERS CHIEF EXECUTIVE REVENUE ROSE 11 TO 7482 MILLION FROM 6763 MILLION CARLOADINGS IN THE QUARTER ROSE 136 OVER THE YEAR AGO MOST SIGNIFICANTLY FOR COAL CONSTRUCTION MINERALS AND AUTOMOTIVES CONTAINER TRAFFIC ROSE 25 AS A RESULT OF INCREASED IMPORT VOLUMES NET INCOME FOR THE QUARTER INCLUDED A 6 MILLION CHARGE OR FIVE CENTS A SHARE FOR AN ACCOUNTING CHANGE THE YEARAGO LOSS INCLUDED A CHARGE OF 1042 MILLION OR 104 A SHARE FOR AN ACCOUNTING CHANGE SOUTHERN PACIFIC SHARES OUTSTANDING ROSE TO 137 MILLION SHARES THIS YEAR FROM 100 MILLION 9404260059 940426 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 7/8 HIGH 3 5/8 LOW 3 3/4 NEAR CLOSING BID 3 7/8 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 395 60 TO 74 DAYS 402 75 TO 89 DAYS 408 90 TO 119 DAYS 420 120 TO 149 DAYS 432 150 TO 179 DAYS 444 180 TO 239 DAYS 460 240 TO 259 DAYS 470 260 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 389 30 DAYS 4 60 DAYS 414 90 DAYS CERTIFICATES OF DEPOSIT 331 ONE MONTH 340 TWO MONTHS 355 THREE MONTHS 396 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 375 ONE MONTH 395 THREE MONTHS 430 SIX MONTHS BANKERS ACCEPTANCES 375 30 DAYS 380 60 DAYS 402 90 DAYS 410 120 DAYS 412 150 DAYS 425 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 7/83 3/4 ONE MONTH 4 1/163 15/16 TWO MONTHS 4 1/44 1/8 THREE MONTHS 4 3/84 1/4 FOUR MONTHS 4 1/24 3/8 FIVE MONTHS 4 5/84 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 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 817 60 DAYS 828 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 828 60 DAYS 837 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 640 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 299 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9404260058 940426 BUSINESS BRIEF BLACK & DECKER CORP FIRSTQUARTER NET INCOME OF 14 CENTS A SHARE IS POSTED BLACK & DECKER CORP REPORTED FIRSTQUARTER NET INCOME OF 146 MILLION AGAINST A 153 MILLION YEARAGO LOSS CAUSED BY AN ACCOUNTING CHARGE FOR THE QUARTER THE POWER TOOLS AND INFORMATION SYSTEMS CONCERN SAID IT HAD A NET INCOME OF 14 CENTS A SHARE COMPARED WITH A NET LOSS OF 22 CENTS A SHARE IN THE YEAREARLIER QUARTER THE YEARAGO QUARTER INCLUDED A CHARGE OF 292 MILLION OR 35 CENTS A SHARE FOR POSTEMPLOYMENT BENEFITS REVENUE DECLINED 18 TO 108 BILLION FROM 110 BILLION ALTHOUGH THE COMPANY NOTED THAT EXCLUDING THE EFFECTS OF FOREIGN EXCHANGE TRANSLATION AND SOLD BUSINESSES REVENUE WOULD HAVE INCREASED 3 NOTING A TREND TOWARD COMPOSITE GOLF CLUB SHAFTS BLACK & DECKER TOWSON MD SAID IT WILL CLOSE A TRUE TEMPER STEEL GOLF CLUB SHAFT PLANT IN SENECA SC THIS SUMMER CONSOLIDATING OPERATIONS WITH ITS AMORY MISS PLANT SHUTDOWN COSTS WERE ACCOUNTED FOR IN 1993 BLACK & DECKER SAID 9404260057 940419 TECHNOLOGY & HEALTH MCI TO PROVIDE FAX AND OTHER SERVICES TO USERS OF INTERNET NEW YORK MCI COMMUNICATIONS CORP JUMPED ABOARD THE BANDWAGON OF BUSINESSES LOOKING TO PROFIT FROM THE INTERNET SAYING IT WILL PROVIDE SERVICES SUCH AS FAXING TO USERS OF THE WORLDWIDE COMPUTER NETWORK MCI SAID THE INTERNET'S 20 MILLION USERS WILL BE ABLE TO WRITE ELECTRONICMAIL MESSAGES THAT THE COMPANY WILL CONVERT INTO A FAX TELEX OR EVEN A HARD COPY DELIVERED BY US MAIL CALLED SNAIL MAIL IN INTERNET PARLANCE FOR AN ADDITIONAL ANNUAL FEE OF ABOUT 30 INTERNET USERS CAN EVEN HAVE EMAIL PRINTED ON THEIR LETTERHEAD WITH THEIR SIGNATURES AFFIXED THE FAX SERVICE WHICH THE LONGDISTANCE COMPANY HOPES TO BEGIN BY JUNE WILL COST 80 CENTS FOR THE FIRST PAGE AND 30 CENTS FOR EACH ADDITIONAL HALFPAGE SENT IN THE US PRICES VARY WIDELY FOR TELEXES BUT CONVERTING EMAIL TO SNAIL MAIL COSTS A STEEP 2 FOR THE FIRST THREE PAGES AND A DOLLAR FOR EACH ADDITIONAL PAGE FOR THOSE FIXING TO FAX SERVICES HAVE BEEN SPROUTING UP ON THE INTERNET THE INTERNET MULTICASTING SERVICE IN WASHINGTON DC HAS ORGANIZED FREE FAXING OVER THE INTERNET WHICH SERVES MANY REGIONS OF THE WORLD INTERFAX A COMPANY IN SKIPPACK PA CAN SEND THE FIRST FIVE PAGES OF FAXES ANYWHERE FOR 5 A MONTH AND A 25 STARTUP FEE ADDITIONAL PAGES COST 50 CENTS APIECE FAXINET WILL DO THE SAME FOR 75 CENTS A PAGE AND A 20 SIGNUP CHARGE THE BOSTON COMPANY SAYS IT CAN CONVERT FAXES TO EMAIL AS WELL FAXINET WHICH CONVERTS ELECTRONICMAIL MESSAGES ON THE INTERNET INTO FACSIMILES IS A SERVICE OF ANYWHERE ASSOCIATES INC BASED IN BOSTON AN ARTICLE LAST TUESDAY INCORRECTLY IDENTIFIED FAXINET AS A COMPANY 9404260056 940426 THE TRADEOFF PROJECT RESIDENTS GAIN FREEDOM FROM CRIME BUT PAY PRICE IN RIGHTS AT GENEVA TOWERS DRUGS AND GANGS ARE REPLACED BY SEARCHES SURVEILLANCE THE BEEFY BEIJING' GUARDS BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO THREE YEARS AGO WHEN POLICE RESPONDED TO A CONTINUAL STREAM OF SHOOTINGS AND ASSAULTS AT THE GANGRIDDEN GENEVA TOWERS HOUSING PROJECT HERE THEY WERE ROUTINELY PINNED DOWN BY SNIPER FIRE AND DEBRIS HURLED OUT THE WINDOWS TELEVISION SETS AN AUTO TRANSMISSION AND EVEN A DEAD BODY TODAY THOSE INCIDENTS ARE ANCIENT HISTORY GENEVA TOWERS IS NOW CLEAN OF DRUG TRAFFIC OF GANGS OF CRIME EVEN OF THE GRAFFITI THAT ONCE CLUNG TO ITS WALLS HOW SAN FRANCISCO'S MOST DANGEROUS PROJECT WAS TRANSFORMED OFFERS TWO KEY LESSONS ONE IS THAT A MAJOR HOUSING PROJECT CAN BE TAKEN BACK FROM GANGS AND CLEANSED OF FILTH AND VIOLENCE BUT IT CAN TAKE AN OVERWHELMING SHOW OF FORCE THE OTHER NOW AT THE CENTER OF A NATIONAL DEBATE OVER WHETHER AMERICANS ARE WILLING TO SACRIFICE SOME RIGHTS IN ORDER TO BE FREE OF FEAR IS THAT THE PRICE IS HIGH BOTH IN FINANCIAL TERMS AND IN THE RESULTING RESTRICTIONS ON PERSONAL LIBERTY THE GENEVA TOWERS EXPERIMENT BEGAN ON JUNE 6 1991 WHEN THE FEDERAL DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FORECLOSED ON THE PROPERTY WHICH HAD BEEN PRIVATELY DEVELOPED AS LOWINCOME HOUSING HUD HAD INSURED THE PRIVATE DEVELOPER'S MORTGAGE AND FORECLOSED WHEN IT DECIDED THE TWO TOWERS HAD BECOME UNSAFE ALTHOUGH HUD NOW OWNS THE PROPERTY THE AGENCY SAYS IT PLANS TO LET SOMEONE ELSE TAKE OWNERSHIP WHILE HUD CONTINUES TO SUBSIDIZE THE RENTS THE DAY OF FORECLOSURE HUD CALLED IN A PRIVATE MANAGEMENT FIRM TO TAKE CONTROL OF GENEVA TOWERS THE FIRM JOHN STEWART CO HIRED ABOUT 60 BEEFY ARMED GUARDS WHO SWARMED INTO THE PROJECT'S TWO 19STORY TOWERS AND IMMEDIATELY INSTITUTED CHANGES THAT CONTINUE TO THIS DAY SHIFTS OF 13 GUARDS PATROL THE BUILDINGS AND GROUNDS 24 HOURS A DAY TENANTS ARE FORCED TO ENTER THROUGH A SINGLE SECURITY ROOM AND IDENTIFY THEMSELVES IF NOT RECOGNIZED ALL GUESTS HAVE TO SIGN IN SURVEILLANCE CAMERAS ARE MOUNTED ON ROOFTOPS IN PARKING LOTS LOBBIES AND HALLWAYS THE GUARDS MOUNT FREQUENT DRUG AND WEAPON HUNTS BURSTING INTO APARTMENTS FRISKING ANYONE WHO APPEARS SUSPICIOUS AND DETAINING SUSPECTS FOR POLICE THE COMPANY HAD PREVIOUSLY TURNED AROUND SMALLER LOWINCOME PROJECTS BUT NONE AS BIG AS THE 576UNIT GENEVA THE STRATEGY SAYS MARI TUSTIN A STEWART VICE PRESIDENT WAS SIMPLE YOU SECURE IT AND YOU CLEAN IT UP AND YOU DO IT INSTANTLY BY LAST YEAR CRIME HAD NEARLY DISAPPEARED MOST OF GENEVA'S 800 RESIDENTS ARE ELATED WITH THE RESULTS NO MURDERS NO MAJOR ASSAULTS SAYS ELI GRAY CHIEF OF GENEVA'S SECURITY FORCE OUR BASIC CRIMES HERE NOW ARE FAMILY DISPUTES BEFORE THE GUARDS CAME ALONG IT WAS JUST LIKE A JUNGLE SAYS DOROTHY M DEAN 70 YEARS OLD AND A GENEVA RESIDENT FOR 27 SHE NOW WANDERS THE PROJECT FREELY DAY OR NIGHT THE SECURITY THEY GOT NOW I'M SO PLEASED SHE SAYS IF THEY GOT RID OF THE SECURITY HERE I'D BE READY TO LEAVE CORNELIA SIMPO 53 REMEMBERS THE OLD TIMES HER CAR WAS TWICE BROKEN INTO AND A NEIGHBOR HAD A BOTTLE BOUNCED OFF HER HEAD AS SHE WALKED OUTSIDE NOW MS SIMPO SAYS IF SECURITY LEFT IT WOULD PROBABLY GO TO THE DOGS THEY HAD TO ROUGH A FEW PEOPLE UP BUT I DON'T SEE ANY HARM IN THAT LIKE MS SIMPO AND MS DEAN MOST OF GENEVA'S RESIDENTS HAVE DECIDED THEY ARE WILLING TO GIVE UP SOME LIBERTY IN EXCHANGE FOR SECURITY A TRADEOFF IN THE SPOTLIGHT NOW THAT SEVERAL HOUSING PROJECTS IN CHICAGO ARE DEALING WITH THE SAME QUESTIONS EARLIER THIS MONTH A FEDERAL JUDGE BANNED THE CHICAGO HOUSING AUTHORITY POLICE FROM CONDUCTING WARRANTLESS SWEEPS OF SUCH NOTORIOUS PROJECTS AS CABRINI GREEN THE SWEEPS HAD BEGUN IN RESPONSE TO THE MURDERS OF THREE ELEMENTARYSCHOOL CHILDREN IN THE PROJECTS PREVIOUSLY THE AMERICAN CIVIL LIBERTIES UNION HAD SUCCEEDED IN STOPPING THE AUTHORITY FROM REQUIRING RESIDENTS AND VISITORS TO PRODUCE ID CARDS TWO WEEKS AGO PRESIDENT CLINTON WEIGHED IN SAYING HE WOULD PROPOSE A PLAN BROADENING THE POWER OF POLICE TO ENTER AND SEARCH PUBLICHOUSING APARTMENTS WITHOUT WARRANTS THE WHITE HOUSE PLAN WOULD ALSO URGE LOCAL PUBLICHOUSING AUTHORITIES TO IMPOSE LEASE CONDITIONS ON TENANTS AUTHORIZING SUCH SEARCHES THERE ARE MANY RIGHTS THAT OUR LAWS AND OUR CONSTITUTION GUARANTEE TO EVERY CITIZEN BUT VICTIMS HAVE CERTAIN RIGHTS THAT WE ARE LETTING SLIP AWAY MR CLINTON SAID THEY INCLUDE THE RIGHT TO GO OUT TO THE PLAYGROUND AND THE RIGHT TO SIT BY AN OPEN WINDOW THE RIGHT TO WALK TO THE CORNER WITHOUT FEAR OF GUNFIRE AT GENEVA TOWERS THE EFFORT HAS BEEN EXPENSIVE ABOUT 78 MILLION WAS SPENT IN THE 27 MONTHS AFTER THE TAKEOVER INCLUDING 35 MILLION ON GUARDS AND OTHER SECURITY MEASURES FOR A CITY LIKE CHICAGO WITH 150000 PUBLICHOUSING RESIDENTS A COMPARABLE EFFORT AT ALL ITS PROJECTS MIGHT AMOUNT TO 180 MILLION THE FIRST YEAR WITHOUT ADDRESSING OTHER ROOT CAUSES OF URBAN DISINTEGRATION SUCH AS POVERTY CROWDING AND LACK OF EDUCATION AT GENEVA THE CLEANUP JOB ALONE WAS ENORMOUS THE LAWNS WERE PATCHES OF PACKED DIRT FILLED WITH DEBRIS AND UP TO A FOOT DEEP IN BROKEN GLASS THE STAIRWELLS AND ELEVATORS WERE REPOSITORIES FOR URINE AND FECES AND GRAFFITI BLANKETED EVERY PUBLIC WALL NEARLY TWOTHIRDS OF THE WINDOWS WERE BOARDED UP AFTER HAVING BEEN SHOT OR KNOCKED OUT UNDERGROUND GARAGES WERE JAMMED WITH ABANDONED CARS USED FOR STOWING DRUGS AND GUNS IN THE FIRST TWO MONTHS WORKERS INCLUDING 50 RESIDENTS REMOVED 90 TRASH BINS FULL OF JUNK AND TOWED OFF MORE THAN 100 ABANDONED CARS PUBLIC AREAS WERE STEAMCLEANED WINDOWS REPLACED AND CREWS WORKED NIGHTS TO LAY NEW SOD AROUND THE BUILDINGS REMOVAL OF GANG GRAFFITI TURNED INTO A WAR OF WILLS WORKERS WOULD CLEAN IT OFF ONLY TO FIND IT BACK THE NEXT DAY THIS WENT ON FOR MONTHS UNTIL THE GANGS TIRED AND LEFT THE PROPERTY ALONE GETTING RID OF THE GANGS WAS ANOTHER WAR THE GANGS CONTROLLED EVERY FLOOR THE GARAGES THE LOBBIES AND EVEN THE SIDEWALKS STEWART CO HIRED BEIJING PRIVATE SECURITY SERVICE INC WHICH IN TURN BROUGHT IN MR GRAY A FORMER CASINO BOUNCER IN LAS VEGAS TO HEAD UP A CAMPAIGN TO CUT OFF THE GANGS' ACCESS TO THE PROJECT MR GRAY WHO PLAYS THE PIANO AND LEADS A BAPTIST CHOIR IN HIS SPARE TIME INHERITED A MOTLEY FORCE OF 15 GUARDS WHO WERE PAID AROUND MINIMUM WAGE ONLY ONE OF THREE GUARD SHIFTS WORE GUNS SOME GUARDS ALLEGEDLY SOLD DRUGS OVER THE COUNTER IN A BOARDEDUP SECURITY ROOM MR GRAY FIRED MOST OF THEM RECRUITING A BETTERPAID FORCE OF ABOUT 60 FULLY UNIFORMED GUARDS ALL EQUIPPED WITH PISTOLS NIGHTSTICKS MACE AND BULLETPROOF VESTS SECURITY CAMERAS WERE REPLACED ON ALL FLOORS AND THREE ZOOM CAMERAS WERE INSTALLED ON ROOFTOPS A DISPATCH BOOTH WAS SET UP WITH SIX VIDEOSURVEILLANCE SCREENS A 10FOOT FENCE WAS ERECTED AROUND GENEVA TOWERS FIRE EXITS ON ALL FLOORS WERE RIGGED SO BUZZERS WOULD ALERT SECURITY TO WATCH THE CAMERAS HALLWAYS AND OUTDOOR AREAS WERE BATHED IN BRIGHT LIGHTS AND THE PLYWOOD COVERING SECURITY AND STAFFOFFICE WINDOWS WAS REPLACED WITH BULLETPROOF GLASS SO THAT THE GUARDS COULD FOR THE FIRST TIME IDENTIFY ALL INCOMING RESIDENTS AND VISITORS THE HOOLIGANS WERE INITIALLY UNIMPRESSED OPENING CAR TRUNKS TO SHOW GUARDS THEIR OWN BULLETPROOF VESTS MR GRAY SAYS HE WAS ONCE PINNED TO THE GROUND BY AUTOMATICRIFLE FIRE FROM THE TOWERS A SNAKE COULDN'T HAVE BEEN CLOSER TO THE GROUND THAN ME HE RECALLS BECAUSE GENEVA TOWERS WAS A PRIVATELY DEVELOPED PROJECT THE BEIJINGS AS THE GUARDS CAME TO BE KNOWN HAD ADVANTAGES UNAVAILABLE TO THE CITY POLICE OR PUBLICHOUSING AUTHORITIES THE GUARDS QUICKLY EVICTED 70 TROUBLEMAKERS A TIMECONSUMING AND SOMETIMES IMPOSSIBLE PROCESS AT PUBLIC PROJECTS CONSIDERING THEMSELVES PRIVATE CITIZENS WITH THE RIGHT TO MAKE CITIZEN ARRESTS THE BEIJINGS SEARCHED ANY SUSPICIOUS VISITOR FOR POSSIBLE TRESPASSING IF NOTHING ELSE IF THEY FOUND DRUGS OR GUNS THEY DETAINED GANG MEMBERS UNTIL POLICE ARRIVED TO MAKE OFFICIAL ARRESTS THE TACTICS RAISE QUESTIONS ABOUT HOW FAR PRIVATE GUARDS CAN GO TO PROVIDE SECURITY AND WHEN THOSE EFFORTS RUN SMACK INTO FOURTH AMENDMENT PROTECTIONS AGAINST UNLAWFUL SEARCH AND SEIZURES MR GRAY SAYS THE GUARDS ARE NOT BOUND BY THE FOURTH AMENDMENT BECAUSE IT ONLY RESTRICTS ACTION BY GOVERNMENT NOT BY PRIVATE INDIVIDUALS AND HE MAINTAINS THAT THE BEIJINGS CAN ENTER AN APARTMENT WITHOUT A WARRANT IF THEY DEEM THAT AN EMERGENCY EXISTS SUCH AN EMERGENCY HE SAYS CAN BE A TIP ON DRUG USE NEIGHBORS' COMPLAINTS OR SUSPICIOUS SIGHTINGS ON THE SURVEILLANCE CAMERAS POLICE HAVE SIMILAR POWERS TO MAKE WARRANTLESS SEARCHES BUT THE LAWS OF MOST STATES NARROWLY DEFINE EMERGENCIES TO SUCH THINGS AS HOT PURSUIT OF A SUSPECT OR THE SOUND OF SCREAMS OR GUNSHOTS LEASES AT GENEVA TOWERS STATE THAT THE LANDLORD CAN ENTER APARTMENTS AT ANY TIME DURING REASONABLE HOURS WITH TENANT'S CONSENT FOR NONEMERGENCY REASONS SUCH AS FIXING THE PLUMBING OR PERFORMING MAINTENANCE THE LEASES ALSO SAY THE LANDLORD DOESN'T NEED PERMISSION TO ENTER IN CASE OF EMERGENCIES FOURTH AMENDMENT SCHOLARS SAY THE BEIJINGS OPERATE IN A GRAY AREA OF THE LAW IF A SECURITY GUARD IS CONTRACTED TO POLICE A PRIVATE APARTMENT FOR EXAMPLE THEY SAY THE GUARD IS CONSIDERED A PRIVATE CITIZEN WHO DOES NOT HAVE TO ADHERE TO THE FOURTH AMENDMENT BUT GEORGE SHOLLENBERGER PROGRAM MANAGER FOR THE NATIONAL INSTITUTE OF JUSTICE A RESEARCH ARM OF THE JUSTICE DEPARTMENT SAYS COURTS HAVE RULED IN MANY CASES THAT PRIVATE GUARDS DO HAVE TO FOLLOW THE CONSTITUTION IF THEY WORK DIRECTLY FOR THE GOVERNMENT GENEVA'S CASE MAY BE MORE NEBULOUS ADDS ROGER GOLDMAN LAW PROFESSOR AT ST LOUIS UNIVERSITY BECAUSE THE BEIJING GUARDS DON'T WORK DIRECTLY FOR THE FEDERAL GOVERNMENT THEY WERE SUBCONTRACTED BY THE STEWART MANAGEMENT FIRM WHICH IN TURN CONTRACTED WITH HUD LAST JUNE HUD REPLACED STEWART CO WITH REPUBLIC MANAGEMENT INC BECAUSE REPUBLIC RUNS OTHER HUD PROJECTS IN THE BAY AREA THE GUARD COMPANY DID NOT CHANGE ALTHOUGH THE LAW IS MURKY THE OPERATORS OF PRIVATELY DEVELOPED BUT PUBLICLY SUBSIDIZED PROJECTS WHICH HOUSE ABOUT ONE MILLION AMERICANS COULD PROBABLY EMULATE SOME OR ALL OF THE TACTICS USED AT GENEVA SECURITY FORCES AT PUBLICLY OWNED PROJECTS WHICH HOUSE TWO MILLION PEOPLE ARE MUCH MORE RESTRICTED PRIVATE GUARDS IN ANY EVENT DO HAVE TO CONFORM TO LOCAL STATE LAWS THAT PROHIBIT HARASSMENT AND ASSAULT AMONG CITIZENS MR GOLDMAN SAYS THE GENEVA GUARDS AT THE LEAST COULD BE SUED IN LOCAL COURTS OR EVEN CRIMINALLY CHARGED IF SOMEONE THEY DETAIN FILES A PROTEST LAWYERS FOR THE ACLU IN SAN FRANCISCO SAY NO GENEVA RESIDENT HAS CONTACTED THEM TO COMPLAIN JOHN CREW AN ACLU DIRECTOR SAYS HIS GROUP WOULD PROBABLY INVESTIGATE GENEVA IF IT WERE DISCLOSED THAT THE GUARDS WERE CONDUCTING THE KIND OF APARTMENT SWEEPS THAT PROMPTED THE LAWSUIT IN CHICAGO MR GRAY SAYS HIS GUARDS DON'T CONDUCT SUCH RANDOM SWEEPS OBVIOUSLY PEOPLE IN PUBLIC HOUSING HAVE RIGHTS LIKE EVERYBODY ELSE MR CREW SAYS SOME MEASURE OF PUBLIC SECURITY AND SAFETY OUGHT TO BE ACHIEVED WITHOUT GIVING UP PEOPLE'S RIGHTS EVEN SOME RESIDENTS WHO PRAISE THE NEW SECURITY SAY THE BEIJINGS ARE OFTEN HEAVYHANDED LESLIE BURCH THE 20YEAROLD PRESIDENT OF A NEW YOUTH COUNCIL AT THE PROJECT SAYS HE WAS CHOKED WHEN HE QUESTIONED WHY SOME GUARDS WERE SEARCHING THROUGH A FRIEND'S POCKETS AFTER HE HAD FAILED TO SIGN IN MR BURCH HOWEVER ADDS THAT GENEVA IS A BETTER PLACE TO LIVE NOW AND LAST YEAR HE PROPOSED OPENING THE TOWERS' FIRST LIBRARY SHIRLEY LEE A 61YEAROLD TENANT ALSO FEELS SAFER BUT SAYS GUARDS ONCE CUFFED HER SON BECAUSE HIS NAME WAS NOT ON THE SIGNIN SHEET AT 2 O'CLOCK ONE MORNING SHE SAYS SHE WAS AWAKENED BY BANGING AT HER DOOR AND OPENED IT TO FIND HERSELF STARING DOWN THE GUN BARRELS OF SOME GUARDS AND POLICE SHE SAYS THEY EXPLAINED THAT SOMEONE HAD ROBBED A TAXI DRIVER OUT FRONT AND THE SUSPECT HAD BEEN SEEN ON SURVEILLANCE CAMERAS RUNNING INTO HER APARTMENT THEY SEARCHED HER PLACE WITHOUT A WARRANT AND WITHOUT ASKING PERMISSION BUT DIDN'T FIND THE ROBBER INSIDE LEGAL EXPERTS SAY POLICE ARE WITHIN THEIR RIGHTS TO PURSUE FLEEING SUSPECTS INTO PRIVATE PROPERTY UNDER THE HOTPURSUIT DOCTRINE SINCE THEN I DON'T SLEEP WELL MS LEE SAYS OF THAT INCIDENT MR GRAY CONCEDES YOU CAN'T ALWAYS BE RIGHT BUT IT WAS FOR HER SAFETY AS WELL AS OURS THE BEIJINGS ALSO HAVE A DIEHARD BAND OF CRITICS INSIDE THE PROJECT ELZIE LEE BYRD JR SAYS MR GRAY DIRECTED HIS GUARDS TO TEACH ME A LESSON AFTER HE COMPLAINED THEY WERE WHIPPING THREE SHACKLED YOUTHS WITH BATONS THEN THE GUARDS STARTED HITTING ME SAYS MR BYRD WHO CLAIMS HE SUFFERED TWO HEART ATTACKS AS A RESULT OF THE INCIDENT MR BYRD SUED THE SECURITY FIRM AND THE CASE IS STILL PENDING IN STATE COURT MR GRAY DISPUTES THE ACCOUNT SAYING MR BYRD TRIED TO TAKE A PRISONER AWAY FROM A GUARD WHO THEN ELBOWED HIM IN THE CHEST AND PUSHED HIM BACK SAN FRANCISCO POLICE CAPT HARLAN A WILSON WHO COMMANDED THE SURROUNDING INGLESIDE DISTRICT LAST YEAR SAYS POLICE HAVE HAD TO ADMONISH THE BEIJINGS FOR VENTURING BEYOND THE PROJECT GROUNDS TO USE THEIR MUSCLE SUPPRESSING NEIGHBORHOOD CRIME EVEN THOUGH THE GUARDS HAVE NO AUTHORITY BEYOND THE 10FOOT FENCE WE DO WHAT WE HAVE TO DO TO MAKE THE GENEVA TOWERS SAFE SAYS MR GRAY WHOSE COMPANY RECENTLY CHANGED ITS NAME TO REMBRANDT PRIVATE SECURITY SERVICE INC IN 1992 THE SHOOTINGS AT GENEVA DROPPED TO SEVEN FROM 33 THE YEAR BEFORE AND VIOLENT ASSAULTS TO SEVEN FROM 66 OVERALL REPORTS OF CRIME FELL BY 45 IN 1993 NOT ONE MAJORCRIME REPORT WAS FILED FROM THE GENEVA TOWERS THAT IS NOT TO SAY THERE AREN'T WORRIES OF ANOTHER KIND FOR BOTH RESIDENTS AND THE POLICE RESIDENTS FEAR THAT A HUD PLAN TO REHABILITATE OR EVEN BULLDOZE THE TOWERS MIGHT FORCE THEM TO MOVE OUT A DECISION ON THAT PLAN IS EXPECTED WITHIN THREE MONTHS AND THE CITY POLICE ARE CONCERNED ABOUT THE DISPLACEMENT OF GANGS FROM THE TOWERS TO A NEIGHBORING PUBLICHOUSING PROJECT CALLED SUNNYDALE BUT HUD OFFICIALS ARE CERTAINLY PLEASED WITH THE OUTCOME AT GENEVA THE RESULTS SPEAK FOR THEMSELVES IN THE MINDS OF THE RESIDENTS SAYS ART AGNOS THE HUD REGIONAL ADMINISTRATOR AND FORMER MAYOR OF SAN FRANCISCO THE OVERWHELMING NUMBER OF RESIDENTS SAY FINALLY WE HAVE PEACE AND SECURITY' AS FOR THOSE WHO CRITICIZE THE GUARDS JOHN PHILLIPS A LOCAL HUD SPECIAL ASSISTANT ADDS THERE IS ALWAYS A TINY LITTLE GROUP OF PEOPLE WHO RESIST EVERYTHING CAPT WILSON SAYS EVEN THOUGH THE BEIJING GUARDS MAY HAVE VIOLATED SOME CONSTITUTIONAL RIGHTS HE APPLAUDS THEIR SUCCESS AND ADDS I WISH I HAD THEIR POWERS 9404260055 940426 BUSINESS BRIEF LIZ CLAIBORNE INC APPAREL MAKER'S PROFIT FELL BY 36 IN THE FIRST QUARTER AS EXPECTED LIZ CLAIBORNE INC SAID FIRSTQUARTER EARNINGS DECLINED 36 BECAUSE THE APPAREL MAKER CONTINUED TO LIQUIDATE EXCESS INVENTORY FROM 1993 CLAIBORNE OF NEW YORK REPORTED EARNINGS OF 274 MILLION OR 35 CENTS A SHARE DOWN FROM 427 MILLION OR 52 CENTS A SHARE A YEAR EARLIER WHEN THE COMPANY HAD A 16 MILLION ONETIME CREDIT DUE TO AN ACCOUNTING CHANGE SALES WERE 5414 MILLION COMPARED WITH 5312 MILLION THE COMPANY SAID ITS FIRST QUARTER IN 1994 WAS 14 WEEKS COMPARED WITH 13 WEEKS IN 1993 CLAIBORNE SAID ITS MARGINS WILL CONTINUE TO BE DEPRESSED IN THE SECOND QUARTER AS THE COMPANY LIQUIDATES EXCESS INVENTORY FROM LAST YEAR AS A RESULT CLAIBORNE EXPECTS SECONDQUARTER EARNINGS TO BE LOWER THAN YEAREARLIER EARNINGS OF 311 MILLION OR 38 CENTS A SHARE 9404260053 940426 MARKETING & MEDIA ADVERTISING REEBOK BUYS STAKE IN CABLETV CHANNEL BY KEVIN GOLDMAN IN AN UNUSUAL DEAL THAT COULD FORESHADOW THE INCREASED ROLE OF ADVERTISERS IN TELEVISION PROGRAMMING REEBOK INTERNATIONAL SAID IT PURCHASED A MINORITY STAKE IN THE FLEDGING CABLE HEALTH CLUB A 24HOUR FITNESS CHANNEL THAT IS MAJORITYOWNED BY INTERNATIONAL FAMILY ENTERTAINMENT INDUSTRY ANALYSTS BELIEVE THE REEBOK INVESTMENT DETAILS OF WHICH WEREN'T DISCLOSED MARKS THE FIRST TIME AN ADVERTISER HAS BECOME AN EQUITY PARTNER IN SUCH A VENTURE REEBOK'S STAKE IS AT LEAST 10 ACCORDING TO EXECUTIVES INVOLVED IN THE VENTURE IN ADDITION TO PUMPING MONEY INTO THE CHANNEL REEBOK WILL COMMAND A MAJOR PRESENCE ALTHOUGH REEBOK OFFICIALS BRISTLE AT SUGGESTIONS THE CABLE HEALTH CLUB WILL COME TO RESEMBLE A REEBOK CHANNEL REEBOK WILL BE THE SOLE ATHLETIC FOOTWEAR AND APPAREL SPONSOR ON THE CHANNEL AND WILL SUPPLY EQUIPMENT APPAREL FOOTWEAR AND INFORMATION TO THE SHOWS IF REEBOK ISN'T ATTACHED TO THE NAME OF A SHOW IT MAY BE SEEN AT THE END IN THE CREDITS IF IT SUPPLIED THE APPAREL IF A SPORTS OR FITNESSRELATED STATISTIC IS PROVIDED BY REEBOK UNIVERSITY THE SHOW WILL SAY SO AND REEBOK WILL BE ALLOWED TO SELL ITS FITNESS PRODUCTS AND EXERCISE VIDEOTAPES FOR 10 MINUTES EACH HOUR THROUGH A TOLLFREE TELEPHONE NUMBER REEBOK ALSO PLANS TO PROMOTE THE CHANNEL WHERE ITS PRODUCTS ARE SOLD YESTERDAY FOR INSTANCE THE CABLE HEALTH CLUB WAS HAWKING STEPREEBOK A TRENDY SINGLESTEP STOOL FOR EXERCISING THE REEBOK NAME WAS VISIBLE ON THE STOOL ITS LOGO WAS EMBROIDERED ON THE ANNOUNCER'S SHIRT AND SEVERAL REEBOK FITNESS VIDEOTAPES WERE ON DISPLAY THE UNCONVENTIONAL AFFILIATION RAISES QUESTIONS ABOUT HOW MUCH INFLUENCE AN ADVERTISER WILL BE ABLE TO WIELD OVER PROGRAM CONTENT BUT ANGEL MARTINEZ REEBOK'S EXECUTIVE VICE PRESIDENT OF GLOBAL MARKETING COUNTERS THAT THE ATHLETIC COMPANY BASED IN STOUGHTON MASS WILL ACTUALLY IMPROVE THE PROGRAMMING OUR CREDIBILITY IS AT STAKE HE SAYS PROGRAMMERS CAN GO ON TO CREATE MORE PROGRAMMING IF IT FAILS BUT WE ONLY HAVE THE CREDIBILITY OF OUR PRODUCT AT LEAST WE'LL HAVE A VOICE IN THE QUALITY OF THE PROGRAMMING THE ALLIANCE COMES AT A CRUCIAL TIME FOR REEBOK AND THE CABLE INDUSTRY REEBOK'S FOOTWEAR SALES SLID 11 IN 1993 TO 13 BILLION TO CAPTURE 21 OF THE MARKET ACCORDING TO SPORTING GOOD INTELLIGENCE NEWSLETTER IN GLEN MILLS PA IN COMPARISON SALES FOR NO 1 NIKE ROSE 10 TO 19 BILLION OR 32 OF THE MARKET MEANWHILE STARTUP CABLE NETWORKS ARE CHALLENGING ONE ANOTHER FOR INCREASINGLY SPARSE CHANNEL SPACE ON CABLE SYSTEMS CABLE HEALTH CLUB HOPES REEBOK WILL SUPPLY CREDIBILITY TO THE CHANNEL THAT BEGAN OPERATION LAST OCTOBER AND IS SEEN BY ONE MILLION CABLE HOUSEHOLDS CABLE HEALTH CLUB HOPES TO GET DISTRIBUTION THROUGH LIBERTY MEDIA A PROGRAMMING ARM OF TELECOMMUNICATIONS THE NATION'S LARGEST CABLE SYSTEM OPERATOR LIBERTY ALSO OWNS A MINORITY STAKE OF AT LEAST 10 OF CABLE HEALTH CLUB A THIRD MINORITY PARTNER WITH AT LEAST 10 IS JAKE STEINFELD CHIEF EXECUTIVE OFFICER OF THE FITNESS COMPANY BODY BY JAKE THE REMAINDER OF THE CHANNEL IS CONTROLLED BY INTERNATIONAL FAMILY ENTERTAINMENT THE VIRGINIA BEACH VA OWNER OF THE FAMILY CHANNEL WHOSE CHAIRMAN IS RELIGIOUS TELEVISION PROGRAMMER PAT ROBERTSON THE CHANNEL WHICH FEATURES WORKOUTS AND FITNESS TIPS HOPES FOR THREE MILLION CABLE HOUSEHOLDS BY YEAR END IT IS ALSO AVAILABLE TO FOUR MILLION HOMES WITH SATELLITE DISHES AND UP TO TWO HOURS OF THE SERVICE WILL BE SEEN EACH DAY ON THE 13 MILLION HOMES REACHED BY LIBERTY SPORTS A SUBSIDIARY OF LIBERTY MEDIA IT ALSO IS CURRENTLY SHOWN FOR ONE HOUR BEGINNING AT 6 AM AND FOR 30MINUTES AT 1130 AM ON THE FAMILY CHANNEL WE'RE GOING TO SEE MORE OF THESE KINDS OF VENTURES WHERE ADVERTISERS ARE BECOMING EQUITY PARTNERS SAYS LARRY GERBRANDT A SENIOR ANALYST AT PAUL KAGEN ASSOCIATES THE REEBOK DEAL ACCORDING TO MR GERBRANDT IS CARRYING AN OFTENUSED PRACTICE WITH ADVERTISERS ONE STEP FURTHER SOME CABLE CHANNELS SUCH AS ESPN SIGNED CHARTER ADVERTISERS SUCH AS ANHEUSERBUSCH AND ASSURED THE PRODUCT CATEGORY EXCLUSIVITY IN FACT REEBOK FIRST SIGNED WITH CABLE HEALTH CLUB AS A CHARTER ADVERTISER ALONG WITH SUNKIST HELENE CURTIS DANNON JENNY CRAIG GENERAL NUTRITION CENTERS AND SHERWINWILLIAMS THE RELATIONSHIP THEN GREW AT THE SUGGESTION OF THE CABLE NETWORK WE JUMPED AT THE CHANCE SAYS REEBOK'S MR MARTINEZ WE SEE THIS AN OPPORTUNITY TO BROADEN OUR MESSAGE THE MORE PEOPLE WE GET OFF THE COUCH THE MORE PEOPLE MAY BUY OUR PRODUCTS FOR ITS PART RIVAL NIKE SAYS THE REEBOK ALLIANCE IS A DIFFERENT WAY TO APPROACH PEOPLE IT REMAINS A QUESTION AS TO WHETHER THIS IS GOING TO BE EFFECTIVE THE CHANNEL CERTAINLY HOPES FOR A BETTER REACTION FROM VIEWERS AT HOME THAN THE HEALTH CLUB TELEVISION NETWORK RECEIVED FROM MEMBERS OF FITNESS CLUBS IT ABANDONED PLANS IN 1992 TO PLACE TV MONITORS IN HEALTH CLUBS IN FOUR MAJOR CITIES AFTER HOSTILE RESPONSES FROM PEOPLE WHO DIDN'T WANT TO BE BOMBARDED WITH PROGRAMS AND COMMERCIALS WHILE EXERCISING MICROSOFT CORP OF REDMOND WASH SAID SIX AGENCIES ARE VYING FOR ITS 40 MILLION AD ACCOUNT INCLUDING A NEW WORLDWIDE EFFORT TO REINFORCE THE MICROSOFT BRAND AMONG SOFTWARE PURCHASERS THE INCUMBENT AGENCY WPP GROUP'S OGILVY & MATHER IS AMONG THE CONTENDERS MICROSOFT SAID OGILVY'S NEW YORK OFFICE IS DEFENDING THE ACCOUNT MICROSOFT SAID NOT THE AGENCY'S LOS ANGELES OFFICE WHICH HAS WORKED FOR MICROSOFT SINCE 1989 OTHER SHOPS IN THE RUNNING INCLUDE LEO BURNETT CHICAGO OMNICOM GROUP'S GOODBY BERLIN & SILVERSTEIN SAN FRANCISCO EURO RSCG'S MESSNER VETERE BERGER MCNAMEE SCHMETTERER NEW YORK THE SEATTLE OFFICE OF INTERPUBLIC GROUP'S MCCANNERICKSON AND WIEDEN & KENNEDY PORTLAND ORE MICROSOFT SAID A SPOKESWOMAN SAID THE COMPANY PLANS TO NARROW THAT LIST THIS WEEK OR NEXT MICROSOFT PLANS TO SHOW CONSUMERS AND BUSINESSES WHAT THE MICROSOFT BRAND STANDS FOR IN ITS NEW BRAND CAMPAIGN THE SPOKESWOMAN SAID THE CAMPAIGN IS TENTATIVELY SET FOR EARLY FALL WE'RE LOOKING FOR IDEAS SHE SAID IF WE DON'T SEE SOMETHING WE COULD DECIDE NOT TO GO AHEAD WITH IT AT ALL CBS INC SAID IT IS EXPANDING ITS INTERACTIVE OFFERINGS ON PRODIGY SINCE ITS BROADCAST OF THE WINTER OLYMPICS IN FEBRUARY THE CBS NETWORK HAS HAD AN ELECTRONIC BULLETIN BOARD ON PRODIGY ON WHICH TV CELEBRITIES AND CBS EXECUTIVES POLLED AND CHATTED WITH SUBSCRIBERS UNDER THE EXPANDED ARRANGEMENT COMPANIES WHO ADVERTISE ON CBS MAY RECEIVE AD SPACE ON CBS'S CORNER OF THE NETWORK PRODIGY SERVICE CO A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO WON'T RECEIVE ANY REVENUE FROM THOSE ADS THE PARTIES SAID WE'RE NOT BROKERING THEIR ADS SAID GEORGE F SCHWEITZER CBS EXECUTIVE VICE PRESIDENT OF MARKETING WE'RE EXTENDING OUR ADVERTISING TO PRODIGY PRODIGY IN TURN RECEIVES PROMOTIONAL SPOTS DURING CBS BROADCASTS IN WHICH VIEWERS WILL BE INVITED TO PARTICIPATE IN POLLS OR PROVIDE FEEDBACK VIA COMPUTER THE PACT DOESN'T INVOLVE CASH PRODIGY CURRENTLY HAS MORE THAN 30 TELEVISION CHANNELS ON LINE INCLUDING ESPN AND AS OF YESTERDAY THE HOME SHOPPING NETWORK REVIEWS HAGGAR APPAREL CORP DALLAS SAID IT IS REVIEWING ITS ESTIMATED 15 MILLION TO 20 MILLION ACCOUNT HANDLED FOR 53 YEARS BY THE DALLAS AGENCY TRACEYLOCKE A UNIT OF OMNICOM GROUP'S DDB NEEDHAM STUART REDSUN HAGGAR VICE PRESIDENT OF MARKETING COMMUNICATIONS SAID THE INCUMBENT AND SEVERAL OTHER WELLESTABLISHED AGENCIES HAVE BEEN INVITED TO COMPETE A DECISION IS EXPECTED BY JUNE ANHEUSERBUSCH COS CONFIRMED THAT IT IS REVIEWING ITS EAGLE SNACKS ACCOUNT CURRENTLY AT OMNICOM GROUP'S TBWA ADVERTISING IN ADDITION TO THE INCUMBENT'S ST LOUIS OFFICE CONTENDERS INCLUDE GLENNON COS OF ST LOUIS AND TWO DALLAS AGENCIES PUBLICIS/BLOOM AND GLEASON & CALISE PRESENTATIONS ARE SET FOR MAY FOOTE CONE FOOTE CONE & BELDING COMMUNICATIONS CHICAGO SAID IT HAS AGREED TO ACQUIRE A SEATTLE DIRECTRESPONSE AGENCY KNOWN AS CF2GS TERMS WEREN'T DISCLOSED FCB SAID THE AGENCY WITH BILLINGS OF ABOUT 30 MILLION AND 40 EMPLOYEES WILL OPERATE UNDER ITS CURRENT MANAGEMENT 9404260052 940426 RETAILING RETAILERS FORTIFY SECURITY AS FEAR DETERS SHOPPERS BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL RETAILERS AND SHOPPINGCENTER DEVELOPERS ARE STEPPING UP ANTICRIME EFFORTS TO TRY TO CALM CONSUMERS WHO A NEW STUDY SAYS ARE CHANGING THEIR SHOPPING AND SPENDING HABITS BECAUSE THEY FEAR CRIME IF PEOPLE BUY JEWELRY OR FURS AT NEIMAN MARCUS GROUP'S FLAGSHIP STORES CLERKS IMMEDIATELY ASK IF THEY WOULD LIKE TO BE ESCORTED TO THEIR CARS OR HAVE THE ITEM DELIVERED TO THEIR HOMES AT WALMART STORES INC THE MASSMARKETER'S STORES USE A PROCEDURE CALLED CODE ADAM MUCH LIKE A GENERALQUARTERS ALARM IN THE CASE OF A SUSPECTED CHILD ABDUCTION AND AT THE SHOPPING MALLS OWNED BY CROWN AMERICAN REALTY TRUST MALLMANAGEMENT COMPANIES ARE BUILDING THEIR OWN SECURITY FORCES AT ONE CROWN MALL UNIFORMED GUARDS PATROL PARKING LOTS ON BICYCLES AT ANOTHER GUARDS ARE STATIONED ON ROOFTOPS TO SPOT SUSPICIOUS ACTIVITY THE CONCERN ABOUT HOW CRIME AFFECTS SHOPPING IS REAL AND GROWING ACCORDING TO A NATIONWIDE SURVEY OF 1003 PEOPLE IT SUGGESTS THAT AMERICANS' FEAR OF CRIME WILL HAVE A DEVASTATING EFFECT ON MANY CATEGORIES OF RETAILING AND DESPITE THE ANTICRIME EFFORTS OF RETAILERS AND DEVELOPERS SHOPPERS DON'T APPEAR REASSURED EIGHT OF 10 RESPONDENTS BELIEVE CRIME OVERALL WILL GET WORSE OVER THE NEXT TWO YEARS ONETHIRD ARE AFRAID TO DRIVE TO STORES WHERE THEY ONCE SHOPPED AND OF THOSE WHO FEAR CRIME ALMOST HALF NO LONGER SHOP AFTER DARK THE POLL CONDUCTED IN EARLY APRIL BY AMERICA'S RESEARCH GROUP A CHARLESTON SC SURVEYER OF CONSUMER ATTITUDES REPORTS THAT ONE IN SEVEN RESPONDENTS SAYS HE OR SHE WILL SHOP LESS NEXT YEAR DUE TO FEAR OF CRIME ONE IN FOUR CONSUMERS SAYS HE OR SHE IS CARRYING PROTECTION ON SHOPPING TRIPS SUCH AS MACE PEPPER SPRAY PERSONAL SOUND ALARMS AND EVEN KNIVES AND GUNS SHOPPERS SAY THEY WILL MOST AVOID CONVENIENCE STORES FOLLOWED BY DEPARTMENT STORES GROCERY STORES AND DRUG STORES THEY SAY SHOPPING MALLS AND DEPARTMENT STORES ARE UNSAFE MAINLY BECAUSE THEY DRAW GROUPS OF TEENAGERS AND REQUIRE WALKING THROUGH LARGE PARKING LOTS THE SURVEY FOUND THAT ABOUT 25 OF RESPONDENTS SAY THEY NO LONGER FEEL SAFE GOING TO MALLS WHERE THEY ONCE SHOPPED BUT MARK SCHOIFET A SPOKESMAN FOR THE INTERNATIONAL COUNCIL OF SHOPPING CENTERS SAYS THE PROBLEM ISN'T CRIME BUT THE PERCEPTION OF CRIME HE POINTS TO A HIGHLY PUBLICIZED CASE RECENTLY IN WHICH A WOMAN WAS SUSPECTED OF BEING ABDUCTED FROM A LONG ISLAND MALL IN FACT SHE HAD TAKEN A CAB TO THE AIRPORT REGIONAL MALLS ARE STILL THE SAFEST RETAIL ENVIRONMENT BAR NONE MR SCHOIFET SAYS BUT HE ACKNOWLEDGES THAT PARKINGLOT BICYCLE PATROLS ARE MORE COMMON AS ARE POLICE DEPARTMENT SUBSTATIONS AND BRIGHTER LIGHTING IN PARKING AREAS TAUBMAN CO SAYS PERSONAL CRIMES ARE RARE AT ITS UPSCALE MALLS BUT SENIOR VICE PRESIDENT CHRISTOPHER TENNYSON BELIEVES THE MALLS' BICYCLERIDING SECURITY OFFICERS MAKE SHOPPERS FEEL BETTER MORE PEOPLE VISITED OUR CENTERS LAST YEAR THAN THE YEAR BEFORE SO PEOPLE AREN'T REACTING BY NOT SHOPPING MR TENNYSON SAYS IN MIAMI INVESTCORP'S SAKS FIFTH AVENUE IS SUPPLEMENTING THE DADELAND MALL SECURITY FORCE WITH ITS OWN THE NEW SAKS GUARDS WHO WORK MOSTLY EVENINGS WEAR UNIFORMS AS A DETERRENT FACTOR SAYS THOMAS MATTHEWS SAKS VICE PRESIDENT OF LOSS PREVENTION IF A MALL'S SECURITY ISN'T UP TO SAKS'S STANDARDS WE WILL ADD SUPPLEMENTAL COPS WE ARE CHECKING THE EFFECTIVENESS RIGHT NOW BUT WE EXPECT IT WILL BE EFFECTIVE AGAINST CRIME BRITT BEEMER WHO CONDUCTED THE SURVEY SAYS CONVENIENCE STORES ARE THE BIG RETAIL LOSERS BECAUSE OF CRIME OF THOSE SURVEYED 40 SAID THEY WOULD SHOP LESS FREQUENTLY AT CONVENIENCE STORES WHILE ONLY 21 SAID THEY WOULD VISIT DEPARTMENT STORES LESS INDEED CONVENIENCE STORES HAVE HAD A LONG HISTORY AS TARGETS OF BANDITS BUT DALLASBASED SOUTHLAND CORP OPERATOR AND FRANCHISER OF 7ELEVEN STORES SAYS IT IS TRYING TO CHANGE THAT AS PART OF A MASSIVE REMODELING 7ELEVEN STORES ARE BEING EQUIPPED WITH STATEOFTHEART SECURITY SYSTEMS INCLUDING AUDIO AND VIDEO MONITORING AND AN ALARM SYSTEM THE SYSTEM WILL TELL POTENTIAL CRIMINALS IT'S THERE SAYS KAREN RASKOPF A SOUTHLAND SPOKESWOMAN STILL SOUTHLAND BELIEVES ITS STORES ARE SAFER THAN PUBLIC PERCEPTION AND MR BEEMER'S STUDY WOULD SUGGEST MS RASKOPF NOTES THAT THE ROBBERY RATE AT ALL CONVENIENCE STORES DECLINED IN 1992 ACCORDING TO THE MOST RECENT FEDERAL BUREAU OF INVESTIGATION FIGURES RETAILERS MAY FRET THAT FEAR OF CRIME WILL DRIVE CONSUMERS TO SHOP VIA TELEVISION AND THROUGH CATALOGS BUT ONLY 12 OF RESPONDENTS SAY THEY USE MAILORDER CATALOGS MORE FREQUENTLY WHILE JUST 8 SAY THEY ARE ORDERING MORE OFTEN FROM TV SHOPPING CHANNELS 9404260050 940426 BUSINESS BRIEF CAREMARK INTERNATIONAL INC FIRSTPERIOD PROFIT FELL 73 AFTER CHARGE FOR ACQUISITION CAREMARK INTERNATIONAL INC SAID ITS FIRSTQUARTER EARNINGS FELL 73 REFLECTING A PRETAX CHARGE OF 25 MILLION RELATED TO THE INTEGRATION OF RECENTLY ACQUIRED CRITICAL CARE AMERICA THE NORTHBROOK ILL PROVIDER OF HOME HEALTHCARE SERVICES EARNED 43 MILLION OR SIX CENTS A SHARE COMPARED WITH NET OF 157 MILLION OR 22 CENTS A SHARE IN THE YEARAGO PERIOD SALES FOR THE PERIOD ROSE 23 TO 5245 MILLION FROM 4278 MILLION WITHOUT THE CHARGE EARNINGS WOULD HAVE RISEN 22 TO 192 MILLION OR 26 CENTS A SHARE IN MARCH CAREMARK COMPLETED THE ACQUISITION OF CRITICAL CARE AMERICA THE FORMER HOME INFUSION BUSINESS OF MEDICAL CARE AMERICA INC FOR 175 MILLION CAREMARK SAID THE RESULTS ARE A STRONG INDICATION THAT IT REMAINS ON TARGET WITH ITS STRATEGIC DIVERSIFICATION AND COSTCONTROL PROGRAMS THE COMPANY SAID ITS FIRSTQUARTER MARGINS IMPROVED IN BOTH OF ITS MAJOR SEGMENTS MARGINS IN ITS PATIENTCARE SEGMENT ROSE TO 116 FROM 103 WHILE THE COMPANY'S MANAGEDCARE SEGMENT MARGINS CLIMBED TO 42 FROM 36 9404260049 940426 RULE PERMITTING OFFSHORE STOCK SALES YIELDS DEALS THAT SPARK SEC CONCERNS BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL A LITTLEKNOWN BUT INCREASINGLY CONTROVERSIAL SECURITIES AND EXCHANGE COMMISSION RULE KNOWN AS REGULATION S ALLOWS PUBLIC COMPANIES TO SELL STOCK TO OFFSHORE INVESTORS AT SUBSTANTIAL DISCOUNTS WITHOUT EVER REGISTERING THE SHARES WITH THE SEC OR TELLING STOCKHOLDERS ABOUT THE SALES ONYX FINANCIAL GROUP INC IS ONE OF DOZENS OF INVESTMENTBANKING FIRMS TRYING TO CAPITALIZE ON THE RULE IN A RECENT MARKETING CIRCULAR ONYX OF MIAMI TELLS PUBLIC COMPANIES THEY CAN RAISE MILLIONS OF DOLLARS IN LESS THAN A MONTH BY SELLING STOCK AT DISCOUNTS OF 20 TO 30 BELOW MARKET PRICES TO OFFSHORE BUYERS WHO WON'T SELL THE SHARES FOR AT LEAST 40 DAYS YET FOUR YEARS AFTER REGULATION S WAS ENACTED SOME SEC OFFICIALS SAY THE RULE HAS RESULTED IN A HOST OF SHADY TRANSACTIONS BY COMPANIES AND BUYERS USING IT TO EVADE REGISTRATION REQUIREMENTS THE INDICATIONS OF ABUSE OF REGULATION S MAY BE SUFFICIENTLY SERIOUS TO CALL FOR A REVISITATION OF THE RULES BY THE COMMISSION SAYS SEC COMMISSIONER RICHARD Y ROBERTS MR ROBERTS SAYS THAT SOME COMPANIES AND INVESTORS ARE TAKING RESTRICTED STOCK THAT CAN'T BE SOLD IN THE US OFFSHORE AND ARRANGING SALES SOLELY IN ORDER TO WASH RESTRICTIONS OFF THE SHARES BEFORE BRINGING THEM BACK TO THE US AN ACTION THAT IS ILLEGAL THE SHARES ARE INTENDED TO BE HELD AS LONGTERM INVESTMENTS AND NOT QUICKLY RESOLD INTO THE US IF THE SHARES ARE EVENTUALLY RESOLD IN THE US THEY DON'T HAVE TO BE REGISTERED REGULATION S TRANSACTIONS ARE BECOMING AN INCREASINGLY POPULAR WAY FOR COMPANIES TO RAISE MONEY INVESTMENT BANKERS AND LAWYERS SAY WHILE IT IS BELIEVED THAT BILLIONS OF DOLLARS HAVE BEEN RAISED THROUGH REGULATION S TRANSACTIONS DURING THE PAST FOUR YEARS NO ONE TRACKS THESE UNREGISTERED DEALS JERRY ISENBERG THE SEC'S DEPUTY DIRECTOR OF ENFORCEMENT SAYS THE SEC IS LIKELY TO SOON BRING CASES AGAINST SEVERAL COMPANIES AND INDIVIDUALS WHO HAVE COMPLETED REGULATION S TRANSACTIONS HE SAYS THE SEC IS ESPECIALLY CONCERNED ABOUT TRANSACTIONS DONE BY SMALL OVERTHECOUNTER COMPANIES THAT HAVE PRIVATELY PLACED LARGE BLOCKS OF STOCK AT DISCOUNTS TO MARKET PRICES MR ISENBERG SAYS THAT IN SOME CASES THESE REGULATION S PRIVATE PLACEMENTS APPEAR TO BE SCHEMES TO EVADE REGISTRATION REQUIREMENTS INDEED WHILE NEARLY ALL OF THE LARGE US INVESTMENT BANKS HAVE MARKETED REGULATION S TRANSACTIONS MANY OF THESE TRANSACTIONS ARE PEDDLED BY BOUTIQUE INVESTMENT BANKS SUCH AS ONYX GS SECURITIES IN THE CAYMAN ISLANDS AND ROSEHOUSE LTD IN BERMUDA ON BEHALF OF SMALL COMPANIES SUCH AS BIOPHARMACEUTICAL RESEARCH COMPANY IMCLONE SYSTEMS INC COMPUTER MAKER ZYCAD CORP AND COMPUTERSOFTWARE CONCERN COMPUTER CONCEPTS CORP THE REGULATION S SALES BY THESE THREE COMPANIES AREN'T UNDER REVIEW BY THE SEC MANY TRADERS WARN THAT COMPANIES DOING REGULATION S OFFERINGS ARE LOSSRIDDEN AND UNABLE TO RAISE MONEY WITHOUT SLICING THEIR SHARE PRICES SARA HANKS A NEW YORK ATTORNEY WHO WROTE REGULATION S WHILE AT THE SEC SAYS THE RULE WAS INTENDED TO HELP BIG HEALTHY COMPANIES SELL BONDS AND STOCK TO LONGTERM EUROPEAN INVESTORS SINCE THESE OVERSEAS BUYERS AREN'T GOVERNED BY US SECURITIES LAWS THE SEC DETERMINED THAT US COMPANIES DIDN'T NEED TO REGISTER SECURITIES WHEN SELLING TO THEM THE SALES COULD THUS BE DONE MORE QUICKLY THAN COMPANY STOCK SALES IN THE US PRIMERICA CORP WAS JUST THE KIND OF COMPANY MS HANKS HAD IN MIND WHEN SHE WROTE REGULATION S LAST APRIL PRIMERICA SOLD SEVEN MILLION OF ITS SHARES IN A REGULATION S OFFERING LED BY MORGAN STANLEY GROUP INC THE PRICE OF THE OFFERING 4275 TO 4325 WAS A DISCOUNT TO THE THENMARKET PRICE OF 46125 PRIMERICA NOW CALLED TRAVELERS INC HADN'T TOLD US SHAREHOLDERS OF ITS OFFERING BUT THE DAY AFTER THE OFFERING WAS COMPLETED THE COMPANY'S STOCK FELL SHARPLY ON TRIPLE ITS AVERAGE DAILY VOLUME IT SEEMS THAT EUROPEAN CUSTOMERS WHO BOUGHT THE CHEAP REGULATION S STOCK WERE ALSO SELLING SHORT PRIMERICA STOCK HERE SHORT SELLERS BORROW A STOCK FROM A BROKER AND IMMEDIATELY SELL IT HOPING THE PRICE WILL DECLINE EVENTUALLY THEY HAVE TO REPLACE THE SHARES THEY BORROWED AFTER 40 DAYS TRADERS SAY THE EUROPEAN INVESTORS REPLACED THEIR BORROWED SHARES WITH THE CHEAPER REGULATION S STOCK AND PROFITED ON THE DIFFERENCE IT WAS A LOOPHOLE IN THE REGULATION S RULE THAT THE SEC NEVER INTENDED JAMES DIMON THE PRESIDENT OF NEW YORKBASED TRAVELERS WHICH OWNS SMITH BARNEY SHEARSON INC THE NATION'S SECONDBIGGEST BROKERAGE FIRM SAYS TRAVELERS WOULD STILL DO A REGULATION S OFFERING AGAIN IT'S FAST EFFICIENT AND EFFECTIVE EVEN THOUGH IT HAD SOME NEGATIVES TO IT MR DIMON SAYS PRIMERICA'S 9 DISCOUNT FOR ITS TRANSACTION WAS REGARDED AS UNUSUALLY SMALL FOR A REGULATION S OFFERING WINNERS ENTERTAINMENT INC'S REGULATION S SALE LAST YEAR WENT FOR MORE THAN 30 BELOW THE PREVAILING MARKET PRICE OF THE STOCK OF THE SAN JUAN CAPISTRANO CALIF OPERATOR OF CASINOS AND RACETRACKS SO TOO DID ONE FOR SI DIAMOND TECHNOLOGY INC A HOUSTON COMPANY THAT MAKES PRODUCTS FOR THE ELECTRONICS INDUSTRY CONSOLIDATED HEALTH CARE ASSOCIATES INC A FRANKLIN MASS OPERATOR OF OUTPATIENT REHABILITATION CLINICS SOLD ITS REGULATION S OFFERING AT A SIMILAR DISCOUNT BUT ARNOLD BENSON CONSOLIDATED'S CHAIRMAN SAYS EVEN THOUGH A COMPANY CAN RAISE MONEY QUICKLY WITH REGULATION S HE DOESN'T THINK IT'S WORTHWHILE OUR STOCK DIPPED WHEN THE 40DAY RESTRICTION CAME OFF INDICATING THAT THE BUYERS WEREN'T LONGTERM INVESTORS HE SAYS AND US SHAREHOLDERS WHO HAD PONIED UP MORE MONEY FOR STOCK AND DIDN'T GET TO PARTICIPATE IN THE REGULATION S TRANSACTION WERE UNHAPPY IT WAS VERY FRUSTRATING MR BENSON SAYS HOWEVER BECAUSE REGULATION S TRANSACTIONS ARE APPEALING TO MANY SMALL COMPANIES NEEDING TO RAISE MONEY QUICKLY THERE'S A LARGE AUDIENCE WHEN FIRMS LIKE ONYX COME CALLING ONYX RECENTLY SENT A 90PAGE SALES PITCH FOR REGULATION S TO DOZENS OF COMPANIES AND POTENTIAL BUYERS OF REGULATION S STOCK ONYX WHICH SAYS IT HAS BEEN DOING REGULATION S TRANSACTIONS FOR LITTLE OVER A YEAR SAYS IT HAS ALREADY COMPLETED 10 OR 11 OF THESE OFFERINGS FOR ITS SMALL AND MEDIUMSIZED CORPORATE CLIENTS IT SAYS IT HAS ALSO REPRESENTED OVERSEAS CLIENTS WHO BOUGHT STOCK IN DOZENS OF OTHER REGULATION S TRANSACTIONS BUT SALES DOCUMENTS ONYX HAS DISTRIBUTED CONTAIN MISREPRESENTATIONS FOR EXAMPLE ONYX ALSO SAYS IT DESIGNED AN INDEX WITH CS FIRST BOSTON INC THAT WOULD ALLOW POTENTIAL BUYERS OF REGULATION S STOCK TO HEDGE THEIR HOLDINGS AGAINST RISK IN CASE STOCKS DECLINE DURING THE 40DAY MINIMUM HOLDING PERIOD PLEASE BE AWARE THAT WE HAD A VERY LONG MEETING WITH THE DIRECTOR OF RESEARCH AT FIRST BOSTON SAYS A MEMO INCLUDED IN THE DOCUMENT IT SAYS THE CS FIRST BOSTON INDEX IS PROPRIETARY TO ONYX ADDING WE ARE EXTREMELY PROUD OF THIS INDEX AND BELIEVE THAT WE HAVE GIVEN OUR REGULATION S INVESTORS AN ADDITIONAL ADVANTAGE TO THE OVERALL MARKETPLACE HOWEVER THOMAS MONAHAN FIRST BOSTON'S DIRECTOR OF EQUITY RESEARCH SAYS HE HAS NEVER MET WITH ANYONE FROM ONYX A SPOKESWOMAN FOR THE SECURITIES FIRM SAYS CS FIRST BOSTON HAS DONE NO BUSINESS WITH ONYX FINANCIAL GROUP FIRST BOSTON IS A UNIT OF CS HOLDING ONYX ALSO OFFERS A LEGAL OPINION FROM ROGERS & WELLS BUT THE NEW YORK LAW FIRM SAYS ONYX HAS NEVER BEEN A CLIENT AND ONYX GIVES EXAMPLES OF SEVEN DIFFERENT REGULATION S OFFERINGS THAT THE COMPANIES INVOLVED SAY THEY DIDN'T DO WITH ONYX I KNOW THEY HAD AN INTEREST IN RAISING US ADDITIONAL FUNDS BUT WE DIDN'T DO BUSINESS WITH ONYX SAYS LARRY KING CHIEF FINANCIAL OFFICER OF SI DIAMOND RONALD G WILLIAMS CHAIRMAN OF ONYX SAYS HE DIDN'T PERSONALLY MEET WITH FIRST BOSTON AND HE CAN'T RECALL WHO AT ONYX DID ON THE ROGERS & WELLS ISSUE HE SAYS THAT ONYX SIMPLY SUPPLIED AN OPINION THAT THE LAW FIRM HAD ISSUED TO A THIRD PARTY AS FOR THE EXAMPLES OF REGULATION S OFFERINGS THAT ONYX PROVIDES HE SAYS THESE OFFERINGS MAY HAVE BEEN ONES IN WHICH ONYX CLIENTS PARTICIPATED THERE'S ONE THING ONYX DOESN'T SHARE WITH CLIENTS IN ITS SALES PITCH MR WILLIAMS A FOUNDER AND ONE OF ITS THREE PRINCIPALS WAS CONVICTED IN 1989 ON FELONY CHARGES OF FAILING TO PAY TAXES AND CONSPIRING TO DEFRAUD THE INTERNAL REVENUE SERVICE AND MR WILLIAMS AND ONYX'S TWO OTHER PRINCIPALS WERE ARRESTED IN NOVEMBER ON FLORIDA STATE CHARGES OF SECURITIES FRAUD AND CONSPIRACY TO COMMIT RACKETEERING THE CHARGES ARE STILL PENDING ACCORDING TO A SPOKESMAN FOR THE FLORIDA DEPARTMENT OF LAW ENFORCEMENT MR WILLIAMS SAYS HE ISN'T GUILTY OF WRONGDOING HE SAYS THAT THESE CHARGES AND THE TAX CASE HAVE NOTHING TO DO WITH OUR CURRENT ACTIVITIES 9404260048 940426 TIME WARNER PANEL TO EXPLORE WHETHER THERE WAS ANY WRONGDOING BY ABOODI BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TIME WARNER INC HAS SET UP A COMMITTEE OF DIRECTORS TO EXAMINE WHETHER THERE HAS BEEN ANY WRONGDOING BY ITS INFLUENTIAL DEALMAKING ADVISER ODED ED ABOODI WHO IS UNDER FEDERAL INVESTIGATION FOR POSSIBLE INSIDERTRADING VIOLATIONS INVOLVING THE COMPANY'S STOCK ACCORDING TO PEOPLE FAMILIAR WITH THE DEVELOPMENT TIME WARNER'S CHAIRMAN AND CHIEF EXECUTIVE GERALD M LEVIN ASKED DIRECTORS TO ESTABLISH THE SPECIAL PANEL HE ACTED AFTER RECENT PUBLISHED DISCLOSURES OF FEDERAL CRIMINAL AND CIVIL INVESTIGATIONS INTO SUSPICIOUS TRADING ALMOST THREE YEARS AGO IN AN ABOODI FAMILY ACCOUNT AS PREVIOUSLY REPORTED MR ABOODI HAS BEEN IN NEGOTIATIONS WITH THE SECURITIES AND EXCHANGE COMMISSION TO AVERT POSSIBLE CIVIL CHARGES ACCORDING TO PEOPLE FAMILIAR WITH THE INVESTIGATION TIME WARNER DECLINED TO COMMENT NEITHER MR ABOODI NOR HIS ATTORNEY COULD BE REACHED FOR COMMENT IN DECEMBER OR JANUARY MR LEVIN ALERTED AT LEAST SOME BOARD MEMBERS TO THE EXISTENCE OF THE PROBE BUT HE APPARENTLY DIDN'T JUDGE IT NECESSARY TO APPOINT THE REVIEW PANEL THEN THE SEC INVESTIGATION BEGUN IN 1992 FIRST CAME TO LIGHT IN MARCH IN A NEW BOOK BY CONNIE BRUCK MASTER OF THE GAME WHICH CHRONICLES THE LIFE OF STEVE ROSS THE LATE FOUNDER OF WARNER COMMUNICATIONS INC AND ARCHITECT OF ITS 1989 MERGER WITH TIME INC AS PREVIOUSLY REPORTED IN THIS NEWSPAPER THE US ATTORNEY IN MANHATTAN ALSO IS INVESTIGATING MR ABOODI PEOPLE FAMILIAR WITH THE PROBES HAVE SAID AUTHORITIES ARE FOCUSED ON SUSPICIOUS TRADING SURROUNDING A STOCKRIGHTS OFFERING THAT MR ABOODI HELPED STRUCTURE FOR TIME WARNER IN 1991 MR ABOODI'S SON DAVID THESE PEOPLE HAVE SAID ALLEGEDLY SOLD TIME WARNER COMMON SHARES JUST DAYS BEFORE THE COMPANY ANNOUNCED THE OFFER TIME WARNER'S SHARE PRICE SANK FOLLOWING THE ANNOUNCEMENT AS SHAREHOLDERS PROTESTED THE PLAN'S TERMS WHILE DAVID ABOODI SOLD COMMON SHARES HE ALLEGEDLY BOUGHT TIME WARNER CONVERTIBLE PREFERRED SHARES THEY WERE DEEMED MORE ATTRACTIVE BECAUSE TIME WARNER IN ANNOUNCING THE STOCKRIGHTS OFFER PLEDGED TO MAKE A BIG REPURCHASE OF THE PREFERRED ISSUE TIME WARNER ULTIMATELY REVAMPED THE RIGHTS OFFERING AFTER IRATE SHAREHOLDERS HELPED PERSUADE THE SEC TO BLOCK IT UNTIL MR ROSS'S DEATH IN DECEMBER 1992 HE TREATED THE SENIOR MR ABOODI AS ONE OF HIS CLOSEST ADVISERS AND ACCORDED HIM UNUSUAL COMPENSATION ARRANGEMENTS TIME WARNER PAID HIS FIRM ALPINE CAPITAL GROUP MILLIONS OF DOLLARS FOR FINANCIAL AND DEALMAKING ADVICE SIMULTANEOUSLY IT PAID MR ABOODI AND HIS STAFF SALARIES AND BENEFITS AS IF THEY WERE TIME WARNER EMPLOYEES IN ADDITION MR ABOODI COLLECTED LUCRATIVE STOCK OPTIONS MR ABOODI CONTINUES TO ADVISE MR LEVIN AND WIELDS BROAD INFLUENCE NOT ONLY NEGOTIATING TIME WARNER DEALS BUT ALSO CRAFTING INCENTIVEPAY PLANS AND HANDLING PERSONAL FINANCIAL AFFAIRS OF SOME TOP EXECUTIVES WHILE MR LEVIN TERMINATED HIM AS AN INSIDE EMPLOYEE LAST YEAR HE RETAINED MR ABOODI AND HIS INVESTMENTBANKING FIRM AS THE COMPANY'S PRIMARY OUTSIDE ADVISER WHATEVER THE OUTCOME OF THE PROBES INVOLVING MR ABOODI SOME TIME WARNER OBSERVERS SUGGEST THAT THE CONTROVERSY MAY PRESENT THE COMPANY WITH AN INCENTIVE TO CUT ITS LINKS TO MR ABOODI AND STRIKE A MORE CONVENTIONAL RELATIONSHIP WITH A TRADITIONAL INVESTMENTBANKING FIRM ONE PERSON CLOSE TO TIME WARNER CALLED THE COMPANY'S ARRANGEMENTS WITH MR ABOODI AN ANACHRONISM LEFT OVER FROM THE MORE FREEWHEELING ROSS ERA 9404260047 940426 BUSINESS BRIEF TRANS FINANCIAL BANCORP INC FIRM MOVES AHEAD IN PLAN TO CUT 8 OF WORK FORCE TRANS FINANCIAL BANCORP INC SAID THAT SINCE APRIL 1 THE BEGINNING OF ITS SECOND QUARTER IT HAS BEGUN REDUCING ITS STAFF BY 55 FULLTIME EQUIVALENTS OR 8 OF THE COMPANY'S WORK FORCE IN A NEWS RELEASE THE BOWLING GREEN KY BANKHOLDING COMPANY WHICH HAS ABOUT 700 EMPLOYEES SAID THE CUTS WILL RESULT FROM THE CONSOLIDATION OF CERTAIN DATAPROCESSING AND ACCOUNTING OPERATIONS OF ITS RECENTLY ACQUIRED UNIT KENTUCKY COMMUNITY BANCORP INC INTO SIMILAR BOWLING GREEN OPERATIONS AND ALSO FROM A REDUCTION IN THE NUMBER OF BRANCHOFFICE TELLERS AT ITS OFFICES IN BOWLING GREEN AND TENNESSEE A SPOKESMAN SAID THE STAFF REDUCTIONS PROBABLY WILL AFFECT MORE THAN 55 WORKERS AS OF YESTERDAY 25 OF THE 55 FULLTIME EQUIVALENT CUTS WERE MADE TRANS FINANCIAL SAID TRANS FINANCIAL SERVES KENTUCKY AND TENNESSEE THROUGH 51 BRANCH OFFICES 9404260046 940426 VARITY IS CLOSE TO SELLING MASSEY UNIT IN EUROPE TO AGCO FOR ABOUT 330 MILLION BY WENDY BOUNDS AND EMORY THOMAS JR STAFF REPORTERS OF THE WALL STREET JOURNAL VARITY CORP SAID IT'S IN THE LATTER STAGES OF NEGOTIATIONS TO SELL ITS MASSEY FERGUSON EUROPEAN FARMEQUIPMENT BUSINESS TO ATLANTA'S AGCO CORP TERMS OF THE AGREEMENT WEREN'T DISCLOSED BUT THE COMPANY DIDN'T DISPUTE A REPORTED FIGURE OF 330 MILLION IN CASH AND STOCK IF THAT WERE WAY OFF BASE WE'D HAVE HAD THE RESPONSIBILITY TO REPORT IT A VARITY SPOKESWOMAN SAID BOTH VARITY AND AGCO ARE LISTED ON THE NEW YORK STOCK EXCHANGE YESTERDAY IN COMPOSITE TRADING VARITY CLOSED AT 3950 UP 125 OR 33 ON VOLUME OF 440900 SHARES AGCO CLOSED AT 3525 UP 2125 OR 64 ON VOLUME OF 251500 SHARES ANALYSTS SAID THEY HAD EXPECTED THE MASSEY FERGUSON SALE BECAUSE VARITY HAS INDICATED A WISH TO GET OUT OF THE FARMEQUIPMENT INDUSTRY WHICH HAS BEEN ON THE DECLINE FOR ABOUT A DECADE UNTIL A YEAR AGO DURING THE PAST FEW YEARS VARITY HAS REFOCUSED TO BECOME A LEADER IN AUTOMOTIVEBRAKE SYSTEMS THROUGH ITS KELSEYHAYES PRODUCTS THE COMPANY HAS STRUCK DEALS WITH FORD MOTOR CO AND VOLKSWAGEN AG AS WELL AS BUILDING AN ANTILOCKBRAKE SYSTEMS PLANT IN THE NETHERLANDS WHICH IS SCHEDULED TO PRODUCE BUSINESS OF MORE THAN 110 MILLION ANNUALLY ONCE IT'S UP AND RUNNING THIS FALL MASSEY FERGUSON GENERATED ABOUT 900 MILLION IN SALES DURING 1993 WITH ITS MANUFACTURING FACILITIES LOCATED IN FRANCE AND ENGLAND MASSEY SOLD ITS NORTH AMERICAN MASSEY FERGUSON DISTRIBUTION CHANNELS TO AGCO IN 1992 FOR ABOUT 90 MILLION ACQUIRING THE REST OF MASSEY FERGUSON WOULD MORE THAN DOUBLE THE SIZE OF AGCO INCREASING ITS ANNUAL SALES TO 15 BILLION SAID ROBERT J RATLIFF AGCO'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER VARITY BASED IN BUFFALO NY ISN'T ALONE IN ITS MOVE TO CUT ITS FARMEQUIPMENT TIES ITS EXPECTED SALE COMES AS TENNECO INC ALSO PREPARES TO SHED ITS CASE CORP FARMEQUIPMENT SUBSIDIARY FROM WHAT WE'VE UNDERSTOOD IT WASN'T A MATTER OF WOULD VARITY SELL THIS IT WAS WHO WOULD BUY IT SAID MATTHEW STOVER AN ANALYST WITH BEAR STEARNS & CO MEANWHILE VARITY HAS BEEN STREAMLINING ITS MASSEY FERGUSON OPERATIONS WHICH ONCE CONSTITUTED THE FOUNDATION AND NAMESAKE OF THE COMPANY THE FARMEQUIPMENT UNIT'S WORK FORCE HAS BEEN SLASHED TO 3600 IN 1993 FROM 6000 IN 1989 EVEN AFTER THE EXPECTED SALE AGCO AND VARITY PROBABLY WILL REMAIN CLOSE VARITY MAKES THE PERKINS ENGINES THAT POWER MOST OF THE APPROXIMATELY 20000 MASSEY FERGUSON TRACTORS MADE EACH YEAR MR RATLIFF SAID THE MASSEY SALE SEEMS LIKE A GOOD CHOICE FOR VARITY SAID MICHAEL FOSS AN ANAYLST WITH GABELLI & CO RYE NY THEY CAN NOW FOCUS ON THE OTHER SECTORS OF THEIR BUSINESS WHICH ARE AREAS WITH VERY STRONG CYCLICAL GROWTH VARITY REPORTED A NET LOSS OF 715 MILLION OR 223 A SHARE ON REVENUE OF 27 BILLION FOR THE YEAR ENDED JAN 31 1994 THAT INCLUDED A CHARGE OF 1461 MILLION FOR ACCOUNTING CHANGES AND A 17 MILLION CHARGE FOR EARLY REDEMPTION OF DEBT PROFIT BEFORE THE CHARGES TOTALED 763 MILLION OR 180 A SHARE AGCO POSTED 1993 EARNINGS OF 341 MILLION OR 278 A FULLY DILUTED SHARE ON SALES OF 5957 MILLION 9404260045 940426 STRIVING TO ADAPT AT DIGITAL EQUIPMENT A RESIGNATION REVEALS KEY PROBLEM SELLING MOVING GOODS BUT MAKING SCANT PROFIT FIRM OUSTS HEAD OF ITS SALES FORCE BOARD PUTS PRESSURE ON CEO BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL JUST LAST MONTH DIGITAL EQUIPMENT CORP'S CHIEF EXECUTIVE OFFICER ROBERT B PALMER HAD REASON TO BELIEVE THE LOSSPLAGUED COMPUTER MAKER WAS TURNING AROUND REPORTS FROM THE SALES FORCE INDICATED REVENUE WAS HOLDING UP AND NEW PRODUCTS WERE TAKING OFF BUT MR PALMER WAS JOLTED BY A RUDE SURPRISE WHILE PRODUCT SALES WEREN'T BAD IN THE COMPANY'S FISCAL THIRD QUARTER SERVICE REVENUE WAS OFF SHARPLY SALES COSTS WERE RISING AND RAMPANT DISCOUNTING WAS SWALLOWING ANY POSSIBLE PROFIT THE RESULTING 183 MILLION LOSS LED TO A RUN ON DIGITAL'S STOCK LOWER CREDIT RATINGS AND NEW WORRIES ABOUT THE FUTURE OF A COMPANY ONCE REGARDED AS AMONG THE BEST IN THE BUSINESS BECAUSE OF ITS WELLENGINEERED MACHINES IN THE WAKE OF THE POOR RESULTS THE BOARD OF DIRECTORS IS GIVING THE 53YEAROLD MR PALMER ONE MORE QUARTER TO SHOW NEW PROGRESS TOWARD A TURNAROUND COMPANY INSIDERS SAY AT A BOARD MEETING LAST WEEK IT ALSO AGREED WITH MR PALMER WHO INHERITED A COMPANY BURDENED BY THE EXCESS OF ITS HUGE SUCCESSES THROUGHOUT THE 1980S THAT THE COMPANY'S NO 2 EXECUTIVE SALES AND MARKETING CHIEF EDWARD E LUCENTE HAD TO GO MR LUCENTE RESIGNED YESTERDAY EFFECTIVE IMMEDIATELY DIGITAL NAMED ENRICO PESATORI HEAD OF ITS FASTGROWING PERSONALCOMPUTER UNIT TO SUCCEED HIM MR LUCENTE 54 REGARDED BY SOME AS A POSSIBLE SUCCESSOR TO MR PALMER IS APPARENTLY BEING HELD ACCOUNTABLE FOR NOT CUTTING EXPENSES DEEPLY ENOUGH AND LOSING CONTROL OF A HUGE AND EXPENSIVE PUSH TO CLOSE BUSINESS AT THE END OF THE LATEST QUARTER BOTH MR LUCENTE AND MR PALMER DECLINED COMMENT INDEED SELLING STRATEGY IS A CENTRAL CHALLENGE FOR DIGITAL THE COMPANY FACES PROBLEMS THAT HAVE LONG PROVED INTRACTABLE WITH ITS SALES FORCE WHICH MR LUCENTE ONCE ONE OF INTERNATIONAL BUSINESS MACHINES CORP'S STAR SALES EXECUTIVES COULDN'T GET INTO SHAPE YEARS OF NEGLECT BY TOP MANAGEMENT FORMED THE SALES FORCE INTO THE WORST IN THE WORLD IN INDIVIDUAL PRODUCTIVITY MR PALMER SAID SHORTLY AFTER TAKING THE CEO JOB 18 MONTHS AGO LONG PAID ON A SALARY BASIS WITHOUT COMMISSIONS DIGITAL'S SALES FORCE ATTRACTED THE OPPOSITE OF THE KIND OF PERSON DRAWN TO SALES ACROSS THE REST OF THE COMPUTER INDUSTRY IT WASN'T A RISKTAKING CULTURE SAYS JACK FALVEY A MANAGEMENT CONSULTANT AND AT ABOUT 20000 STRONG THE SALES FORCE NOW ACCOUNTS FOR ALMOST A FIFTH OF DIGITAL'S WORK FORCE OF 92000 DOWN FROM A 1989 PEAK OF 126000 BUT IT IS CERTAIN TO SHRINK THE BOARD ALSO BACKED AN ACCELERATED COSTCUTTING PLAN LIKELY TO SLASH THE WORK FORCE BY AN ADDITIONAL 20000 PEOPLE IN THE NEXT TWO YEARS WHICH WILL PROMPT ANOTHER CHARGE AGAINST EARNINGS PEOPLE CLOSE TO THE COMPANY SAY BUT MR LUCENTE'S DEPARTURE COULD ALSO ADD TO TURMOIL IN THE SENIOR RANKS WHICH HAVE ALREADY BEEN REORGANIZED REPEATEDLY IN A YEAR ON THE JOB MR LUCENTE RAPIDLY CONSOLIDATED POWER TOUCHING EVERY ASPECT OF THE COMPANY'S OPERATIONS AND FILLING ESSENTIAL POSTS WITH LOYALISTS EVERYTHING THAT WASN'T NAILED DOWN HE OWNED A SALES EXECUTIVE SAYS ANOTHER SAYS THAT DIGITAL MANAGEMENT IS GOING TO DISCOVER LUCENTE'S PEOPLE ARE NOW RUNNING MOST OF THE COMPANY MR LUCENTE'S OUSTER ACCORDING TO PEOPLE FAMILIAR WITH THE BOARD'S DELIBERATIONS WAS ALSO A REJECTION OF AN ABRASIVE AND AUTOCRATIC MANAGEMENT STYLE PEOPLE WERE AFRAID TO TELL HIM THE BAD NEWS DESPITE WORSENING CONDITIONS IN THE FIELD SAYS ONE PERSON DIGITAL HAS LOST MORE THAN 3 BILLION IN THE PAST THREE YEARS IN ITS SOFAR UNSUCCESSFUL STRUGGLE TO ADAPT TO A CHANGING MARKET MORE COMPUTER BUYERS WANT SMALLER MACHINES THAT RUN ON STANDARD SOFTWARE NOT THE PROPRIETARY VAX SYSTEMS THAT HAVE BEEN DIGITAL'S MAINSTAY ANNUAL REVENUE IS STAGNANT AT ABOUT 14 BILLION DIGITAL HAS PRODUCTS THAT ADDRESS THE NEW NEEDS INCLUDING PERSONAL COMPUTERS AND A SPEEDY NEW MICROCHIP THE ALPHA BUT COMPANIES LIKE DIGITAL THAT ARE SHIFTING TO STANDARD LOWMARGIN PRODUCTS ALSO NEED DIFFERENT DISTRIBUTION CHANNELS SUCH AS RETAIL STORES AND DIRECTMAIL SALES MR PALMER'S PROBLEM IS THAT DIGITAL DOESN'T HAVE A LARGE NUMBER OF THOSE CHANNELS OPEN WITHOUT THEM HE STILL MUST RELY ON THE SALES FORCE AFTER LAST QUARTER'S DISASTROUS RESULTS MR PALMER SAID DIGITAL HAD TOO MANY SALESPEOPLE BUT ADDED THAT THE COMPANY CAN'T CUT THEM WITHOUT FORFEITING REVENUE FOR A LONG WHILE DIGITAL'S PRODUCTS WERE THE HOTTEST ALTERNATIVE TO MAINFRAME COMPUTERS AND BECAUSE THEY WERE CHEAPER THEY ALMOST SOLD THEMSELVES BUT WHEN COMPETITION ARRIVED THE DIGITAL SALES STAFF WAS HOPELESSLY OUTCLASSED DIGITAL FOUNDER KENNETH H OLSEN HAD ALWAYS PREACHED THAT THE COMPANY SHOULD NEVER SELL CUSTOMERS SOMETHING THEY DIDN'T NEED SO DIGITAL'S SALESPEOPLE SPENT MUCH OF THEIR TIME DWELLING ON TECHNICAL EXPLANATIONS AND DID LITTLE HARD SELLING THE LACK OF COMMISSIONS FOR YEARS DROVE AWAY GOOD SALESPEOPLE WHEN COMMISSIONS WERE PUT IN PLACE BY MR PALMER THE NEW SYSTEM BACKFIRED UNDER MR LUCENTE'S OVERSIGHT INSIDERS SAY SOME SALESMEN SOLD PRODUCT AT LITTLE OR NO PROFIT TO PUMP UP VOLUME AND THEIR COMPENSATION THE SALES FORCE HAS BEEN REORGANIZED OVER AND OVER THE LATEST SHAKEUP OVERTURNING A NEW STRUCTURE THAT MR PALMER HIMSELF PUT IN PLACE WHEN TOP MANAGEMENT WANTED MIDDLE MANAGERS CUT FROM THE SALES RANKS THEY ASKED MIDDLE MANAGERS TO CARRY OUT THE ORDER SO MANY FRONTLINE PEOPLE SERVING CUSTOMERS GOT THE AX WHILE THE BULK OF MANAGERS REMAINED RUSSELL FORQUER A FORMER DIGITAL SALESMAN IN ERIE PA WAS ONE OF THE PEOPLE LET GO ONLY WEEKS BEFORE HE WAS DISMISSED IN DECEMBER 1992 HE WAS GIVEN A RAISE A BONUS AND A TRIP TO HAWAII TO RECOGNIZE HIS STRONG PERFORMANCE ALONG WITH SEVERAL HUNDRED OF DIGITAL'S OTHER TOP SALESPEOPLE MR FORQUER SAYS HE SOLD 21 MILLION IN DIGITAL EQUIPMENT IN HIS LAST YEAR BUT WAS LET GO IN AN ACROSSTHEBOARD COSTCUTTING MOVE BUT WHEN HIS BOSS'S POSITION WAS EVENTUALLY ELIMINATED MR FORQUER SAYS HE WAS ABLE TO FIND ANOTHER SALESMANAGEMENT JOB WITH THE COMPANY THEY WERE SUPPOSED TO ELIMINATE THE OVERHEAD IN THE SALES FORCE NOT THE PEOPLE ON THE STREET MAKING SALES HE SAYS BUT THE OLDBOY NETWORK WAS TOO STRONG HE CONTENDS UPPER MANAGEMENT HAS NO IDEA WHAT IS GOING ON IN THE TRENCHES TODAY HE STILL SELLS DIGITAL COMPUTERS THE BEST ON THE MARKET BUT HE SELLS THEM FOR ONE OF THE COMPANY'S OUTSIDE DISTRIBUTORS WHICH YIELDS A LOWER PROFIT FOR DIGITAL HE DID MORE THAN 17 MILLION IN SALES IN HIS 11 MONTHS AWAY FROM THE COMPANY ALTHOUGH DIGITAL WHICH IS BASED IN MAYNARD MASS RETAINS MANY TOPNOTCH SALESPEOPLE ITS SALES PRODUCTIVITY OVERALL IS WANTING HEWLETTPACKARD CO WHICH RECENTLY SURPASSED DIGITAL AS THE NO 2 COMPUTER MAKER BEHIND IBM HAS REVENUE ROUGHLY EQUAL TO MORE THAN 300000 FOR EACH EMPLOYEE DIGITAL'S CURRENT REVENUE PER EMPLOYEE IS HALF OF THAT AT 155000 INDEED DIGITAL'S ENGINEERINGDRIVEN CULTURE HAD LONG PLACED SALES AND MARKETING IN THE BACK SEAT AT A 1990 EXPOSITION OF THE COMPANY'S PRODUCTS FOR INSTANCE A SPECIAL AREA WAS SET UP TO SHOW CUSTOMERS SOME OF THE HOTTEST PRODUCTS THE COMPANY STILL HAD IN THE DEVELOPMENT LABORATORIES BUT THE NIGHT BEFORE WHILE THE EXHIBIT WAS BEING SET UP SALESPEOPLE WHO NEEDED A PREVIEW WERE BARRED FROM THE AREA THE SHOW'S MANAGER ERECTED A WALL OF LARGE POTTED PLANTS TO KEEP THEM FROM SEEING WHAT WAS INSIDE JOHN WHITESIDE A SOFTWARE ENGINEER AND MANAGEMENT SPECIALIST WHO LEFT DIGITAL IN 1992 SAYS ISOLATION OF THE SALES FORCE FROM THE ENGINEERING HEART OF THE COMPANY CAUSED ITS PRODUCTS TO BECOME MORE AND MORE DETACHED FROM MARKET REALITIES AND WHAT CUSTOMERS WERE TELLING THE SALES FORCE THAT THEY ACTUALLY WANTED WITHOUT THAT INPUT FROM SALES WE WERE BLIND TO THAT AT THE SAME TIME HE SAYS THE ENGINEERING COMMUNITY OFTEN WOULDN'T EXPLAIN PRODUCTS FULLY OR WHEN SALEPEOPLE WOULD ASK FOR HELP FROM THE FIELD THEY'D BE TOLD TO FIGURE IT OUT FOR THEMSELVES IN THE LATEST QUARTER INSIDERS SAY THE NEW SALESCOMMISSION PLAN MAY HAVE HELPED DEEPEN THE LOSS THEY SAY THAT DISCOUNTS OR OTHER SWEET TERMS WERE STRUCK IN THE FIELD WITHOUT ADEQUATE MANAGEMENT CONTROLS AND THAT THIS LACK OF OVERSIGHT IS BEING PLACED AT MR LUCENTE'S DOOR MEANWHILE WITH SO MUCH TALK ABOUT THE NEED TO SHRINK THE SALES FORCE THOSE WHO ARE LEFT ARE ON EDGE PEOPLE ARE SCARED TAP SOMEONE ON THE SHOULDER AND THEY'RE LIABLE TO JUMP A FOOT IN THE AIR SAYS A TOP SALESMAN EVERYONE'S WORKING FLATOUT TO MAKE THEIR FOURTHQUARTER NUMBERS YET A LOT OF THEM KNOW THAT ON JULY 1ST THEY'RE HISTORY SOME SALESMEN STAUNCHLY DEFEND MR LUCENTE SAYING HE REPRESENTS THE TOUGHNESS AND DISCIPLINE THAT HAS LONG BEEN LACKING AT THE COMPANY BUT IT WAS MR LUCENTE'S HARSH MANAGEMENT STYLE THAT CLINCHED HIS DEPARTURE SAY PEOPLE FAMILIAR WITH LAST WEEK'S BOARD MEETING ONE PERSON AT THE MEETING SAYS THE BOARD RECEIVED REPORTS THAT HIS SENIOR MANAGEMENT GROUP WAS RIVEN BY RESENTMENT AND ANGER OVER WHAT WAS DESCRIBED AS MR LUCENTE'S DOMINEERING MANAGEMENT STYLE LAST MONTH FOR INSTANCE MR LUCENTE VISITED DALLAS TO MEET SOME OF HIS TROOPS IN AN ATTEMPT TO BOOST MORALE HIS MESSAGE I'M HERE TO LISTEN ASK ME ANYTHING BUT WHEN A SALESMAN REQUESTED ELABORATION OF THE COMPANY'S SOFTWARE STRATEGY WHICH HE CALLED UNCLEAR MR LUCENTE SHOT BACK THAT HE WAS SICK OF ANSWERING THIS QUESTION ACCORDING TO ONE ATTENDEE MR LUCENTE THEN TOOK HIS HEAD OFF BELITTLING HIM IN FRONT OF THE WHOLE ROOM NEEDLESS TO SAY NO ONE ELSE ASKED ANYTHING SO DIGITAL TURNED TO THE 53YEAROLD MR PESATORI EFFECTIVELY MAKING HIM SECOND IN COMMAND UNDER THE DIRECTION OF MR PESATORI A FORMER SENIOR EXECUTIVE OF ING C OLIVETTI AND ZENITH DATA SYSTEMS DIGITAL HAS JUMPED FROM ALSORAN TO ONE OF THE TOP 10 PC MAKERS WITH MORE THAN 1 BILLION IN SALES LAST YEAR THE UNIT RECENTLY TURNED PROFITABLE AND ITS SALES CONTINUE TO GROW AT MORE THAN A 100 ANNUAL RATE EXECUTIVES SAY INDEED THE PC UNIT IS POISED TO OVERTAKE DELL COMPUTER CORP IN SALES IT WILL BRING IN HIGHER REVENUE IN THE CURRENT QUARTER THAN DELL POSTED IN ITS JUSTREPORTED FISCAL FOURTH QUARTER INSIDERS SAY MORE IMPORTANT THE ITALIANBORN MR PESATORI'S UNIT WHICH IS BATTLING IN A BRUTALLY COMPETITIVE MARKET HAS SUCCEEDED IN BUILDING A STRUCTURE THAT DIGITAL NOW HOPES TO ESTABLISH ON A BROADER SCALE THE UNIT HAS BECOME PROFITABLE BY SELLING MACHINES THROUGH RETAIL AND OTHER INDIRECT CHANNELS NOT THROUGH DIGITAL'S TRADITIONAL AND COSTLY DIRECTSALES APPROACH ENRICO CLEARLY UNDERSTANDS THE DIRECTION THE BUSINESS HAS TO GO SAYS JAY P STEVENS AN ANALYST AT DEAN WITTER HE'S SHOWN HE KNOWS HOW TO MAKE A LOWMARGIN VOLUMEDRIVEN BUSINESS PROFITABLE MR STEVENS NOTES THAT DIGITAL HAS SAID IT HOPES TO REDIRECT ITS SALES MODEL SO THAT ABOUT 60 OF ITS BUSINESS FLOWS THROUGH INDIRECT CHANNELS WITH THE REST THROUGH THE DIRECT SALES FORCE AS IT NOW STANDS THAT RATIO IS 75 DIRECT SALES TO ONLY 25 INDIRECT AS FOR MR LUCENTE DIGITAL ANNOUNCED THAT HE WILL BECOME EXECUTIVE IN RESIDENCE AT ONE OF THE GRADUATE SCHOOLS OF CARNEGIE MELLON UNIVERSITY HIS ALMA MATER THE LATEST EVENTS ARE A BITTER TURN FOR MR LUCENTE HE HAS BEEN IN THE UPPER ECHELON AT THREE COMPANIES NOW BUT ALWAYS MISSED THE BRASS RING BARELY A YEAR AGO DIGITAL HIRED HIM WITH HOPES HE WOULD TIGHTEN AND PROFESSIONALIZE ITS SALES FORCE MR LUCENTE SPENT 31 YEARS AT IBM AND WAS SEEN AS ONE OF A HANDFUL OF CANDIDATES FOR THE TOP JOB BEFORE LEAVING IN 1991 FOR NORTHERN TELECOM LTD WHERE HE WAS THE SECONDRANKING EXECUTIVE HE RESIGNED EARLY LAST YEAR AT IBM ONE OF MR LUCENTE'S ASSIGNMENTS WAS TO TURN TECHNICIANS OFFICE WORKERS AND MANUFACTURING WORKERS INTO SALESPEOPLE IT WAS A DIFFICULT AND UNPOPULAR TASK WHEN HE WAS HIRED BY DIGITAL MANY ANALYSTS APPLAUDED PREDICTING COSTCUTTING AND MORE AGGRESSIVE SALES INCENTIVES WOULD IMPROVE OVERALL RESULTS AT THE TIME HE ANNOUNCED MR LUCENTE'S HIRING MR PALMER SAID I DON'T THINK I'VE INTERVIEWED SO MANY PEOPLE FOR ANY ONE POSITION IT TOOK A WHILE BUT I'M CONFIDENT THAT WE NOW HAVE THE RIGHT PERSON NOW THE DEPARTURE OF HIS HANDPICKED LIEUTENANT REFLECTS BADLY ON MR PALMER AND IT HAS HEIGHTENED THE PRESSURE ON HIM TO PRODUCE RESULTS AN EXECUTIVE CLOSE TO MR PALMER DENIED LAST NIGHT HOWEVER THAT HE HAD BEEN GIVEN AN EXPLICIT PERFORMANCE DEADLINE BY THE BOARD THEY DIDN'T PUT A TIME CLOCK ON THIS HE SAID BUT THERE ISN'T A CEO IN AMERICA ANYMORE WHO ISN'T ON TRIAL EVERY DAY ROBERT B PALMER PRESIDENT AND CHIEF EXECUTIVE OF COMPANY VERNON R ALDEN FORMER CHAIRMAN THE BOSTON CO PHILIP CALDWELL SENIOR MANAGING DIRECTOR OF LEHMAN BROTHERS RETIRED CHAIRMAN OF FORD COLBY H CHANDLER RETIRED CHAIRMAN OF EASTMAN KODAK ARNAUD DE VITRY ENGINEERING CONSULTANT ROBERT R EVERETT RETIRED PRESIDENT OF MITRE CORP KATHLEEN F FELDSTEIN PRESIDENT OF ECONOMICS STUDIES INC THOMAS P GERRITY DEAN WHARTON SCHOOL OF THE UNIV OF PENNSYLVANIA THOMAS L PHILLIPS RETIRED CHAIRMAN OF RAYTHEON DELBERT C STALEY RETIRED CHAIRMAN OF NYNEX WILLIAM M BULKELEY CONTRIBUTED TO THIS ARTICLE 9404260044 940426 TECHNOLOGY & HEALTH SUN AND FUJITSU TO JOINTLY DEVELOP NEW SPARC CHIPS BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO SUN MICROSYSTEMS INC AND FUJITSU LTD SAID THEY WILL MESH THEIR DEVELOPMENT OF NEW MICROPROCESSORS FOR SUN'S LINE OF BESTSELLING COMPUTER WORKSTATIONS THE AGREEMENT REPRESENTS SUN'S MOST AGGRESSIVE RESPONSE YET TO A WAVE OF NEW POWERFUL MICROPROCESSORS FROM COMPETITORS THAT HAVE THREATENED TO OVERTAKE SUN'S LINE OF SOCALLED SPARC CHIPS IT ALSO COULD SPELL BAD NEWS FOR OTHER COMPANIES SUCH AS TEXAS INSTRUMENTS INC THAT ARE INDEPENDENTLY DEVELOPING THEIR OWN SPARC DESIGNS SUN AND FUJITSU HAVE AGREED TO A COMMON STRATEGY FOR DEVELOPING FUTURE GENERATIONS OF SUN'S SPARC MICROPROCESSOR WHICH POWERS SUNCOMPATIBLE WORKSTATIONS UP TO NOW SUN AND FUJITSU HAVE BOTH DESIGNED SPARC MICROPROCESSORS IN COMPETITION WITH EACH OTHER IN LINE WITH SUN'S STRATEGY OF WIDELY LICENSING ITS TECHNOLOGY AND THEN COMPETING ON PRICE AND PERFORMANCE NOW HOWEVER THE AGREEMENT WILL ALLOW BOTH COMPANIES TO FOCUS THEIR INVESTMENTS IN ORDER TO PROVIDE A COMPLEMENTARY LINEUP OF SPARC CHIPS BY WORKING TOGETHER WE CAN PRODUCE THE SAME NUMBER OF CHIPS AND COVER MORE SPACE SAID KENNETH PELOWSKI SUN'S DIRECTOR OF WORLDWIDE CORPORATE ALLIANCES NEITHER COMPANY HOWEVER HAS COMMITTED TO ADDITIONAL SPENDING ON SPARC DEVELOPMENT ABOVE WHAT IT ALREADY HAD PLANNED THE AGREEMENT IS A STRIKING DEPARTURE FOR SUN WHICH HAS LONG INSISTED THAT COMPETITION AMONG SPARCCHIP DESIGNERS WOULD LEAD TO THE HIGHESTPERFORMING CHIPS FOR ITS WORKSTATION CUSTOMERS WHAT YOU SEE IS THAT THE MODEL HAS BEEN MODIFIED TO FIT THE ECONOMICS OF PRODUCING MODERN MICROPROCESSORS WHICH COST TENS OF MILLIONS OF DOLLARS SAID WILLIAM RADUCHEL A SUN EXECUTIVE VICE PRESIDENT FOR FUJITSU THE COOPERATION WITH SUN HOLDS THE PROSPECT OF REDUCING ITS CHIPRELATED RESEARCHANDDEVELOPMENT EXPENDITURES BY FOCUSING ITS EFFORTS MORE CAREFULLY AS WELL AS OF LAYING THE GROUNDWORK FORASYET UNSPECIFIED COOPERATION WITH SUN FUJITSU SENIOR EXECUTIVE VICE PRESIDENT MIKIO OHTSUKI SAID IT ALSO WILL GIVE FUJITSU A BETTER UNDERSTANDING OF SUN'S TECHNOLOGY SINCE SUN AND FUJITSU ENGINEERS WILL SHARE INFORMATION AND WORK TOGETHER IN CHIP DEVELOPMENT 9404260043 940426 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY APRIL 13 1994 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9404260041 940426 BUSINESS BRIEF ZARING HOMES INC EXPANSION INTO NEW MARKETS EXPECTED TO TRIM 1994 PROFIT ZARING HOMES INC'S CHIEF FINANCIAL OFFICER BRIAN CAMPBELL SAID THE CINCINNATI COMPANY'S EXPANSION INTO TWO NEW MARKETS WILL CUT EARNINGS THIS YEAR BY 10 CENTS TO 13 CENTS A SHARE BUT THE REGIONAL BUILDER OF SINGLEFAMILY HOMES NOTED THAT ITS PUSH INTO RALEIGH/DURHAM NC AND INDIANAPOLIS SHOULD ADD TO EARNINGS AND REVENUE IN THE SECOND HALF OF 1995 BY THAT TIME ZARING SHOULD BE IN THREE TO FIVE NEIGHBORHOODS WITH 60 TO 75 SITES IN EACH MARKET MR CAMPBELL SAID IN 1993 ZARING EARNED 61 MILLION OR 148 A SHARE ON A PROFORMA BASIS BEFORE ITS PUBLIC OFFERING ZARING WAS AN S CORPORATION WHICH HAS A LOWER TAX RATE ZARING ALSO OPERATES IN NASHVILLE TENN AND IS EXPANDING INTO NORTHERN KENTUCKY WHERE THE COMPANY EXPECTS TO GENERATE REVENUE IN THE FOURTH QUARTER 9404260040 940426 BUSINESS BRIEF AMOCO CORP WORKERS TO SHARE 98 MILLION IN INCENTIVE BONUSES FOR 1993 AMOCO CORP SAID IT WILL DISTRIBUTE 98 MILLION OF INCENTIVE PAY BONUSES TO MOST OF ITS EMPLOYEES DURING EARLY MAY THE BONUSES WILL RANGE FROM 46 TO 54 OF THEIR 1993 SALARIES ALL FULLTIME EMPLOYEES WHO NUMBER 46000 WORLDWIDE WILL RECEIVE THE INCENTIVE PAYMENTS THE BONUSES WILL BE BASED ON A COMBINATION OF A NUMBER OF FINANCIAL MEASUREMENTS ONE OF WHICH WILL BE RETURN ON CAPITAL EMPLOYED THAT NUMBER WAS 106 FOR THE CHICAGOBASED OIL COMPANY DURING 1993 THESE BONUSES REPRESENT THE RESULTS OF HARD WORK AND OUTSTANDING EFFORT ON THE PART OF AMOCO PEOPLE IN THE FACE OF CHALLENGING CIRCUMSTANCES SAID AMOCO CHAIRMAN H LAURANCE FULLER THIS IS THE FIRST YEAR THAT THE BONUSES WILL BE DISTRIBUTED 9404260039 940426 INTERNATIONAL BRIEF SIEMENS AG ELECTRONICS CONCERN'S NET WAS FLAT IN FIRST HALF OF '94 GERMAN ELECTRONICS GIANT SIEMENS AG SAID GROUP NET PROFIT FOR THE FIRST SIX MONTHS OF FISCAL 1994 WAS VIRTUALLY UNCHANGED AT 879 MILLION MARKS 5201 MILLION COMPARED WITH 877 MILLION MARKS A YEAR EARLIER THE GROUP ALSO REPORTED OCTOBERTOMARCH SALES ROSE 3 TO 38 BILLION MARKS 2248 BILLION WHILE ORDER INFLOW GREW 9 TO 444 BILLION MARKS SIEMENS SAID THE INCREASE IN SALES AND NEW ORDERS FOR THE FIRST SIX MONTHS OF THE FISCAL YEAR THAT BEGAN OCT 1 WAS A RESULT OF INCREASED OVERSEAS DEMAND WHILE THE DOMESTIC MARKET REMAINED WEAK FOREIGN SALES IN THE PERIOD GREW 13 TO 224 BILLION MARKS AND DOMESTIC SALES DROPPED 9 TO 156 BILLION MARKS THE COMPANY REPORTED THE FIRSTTIME CONSOLIDATION OF USBASED OSRAM SYLVANIA INC BOOSTED THE FOREIGN FIGURES THE COMPANY SAID 9404260038 940426 BUSINESS BRIEF ASARCO INC FIRSTQUARTER NET INCOME OF 266 MILLION IS POSTED ASARCO INC HELPED BY THE SALE OF AN AUSTRALIAN GOLDMINING VENTURE REPORTED FIRSTQUARTER NET INCOME OF 266 MILLION OR 64 CENTS A SHARE COMPARED WITH A LOSS OF 309 MILLION OR 74 CENTS A SHARE A YEAR EARLIER THE NEW YORKBASED METALS AND CHEMICALS CONCERN SAID ITS RESULTS INCLUDED A GAIN OF 319 MILLION FROM THE SALE OF ITS REMAINING 45 INTEREST IN ASARCO AUSTRALIA LTD AS WELL AS A 26 MILLION AFTERTAX GAIN FROM THE RECOVERY OF BAD DEBT PREVIOUSLY WRITTEN OFF SALES FOR THE QUARTER REACHED 443 MILLION DOWN FROM 4571 MILLION DURING LAST YEAR'S FIRST QUARTER ASARCO SAID IT CONTINUED TO SUFFER FROM DISAPPOINTING METALS PRICES PARTICULARLY IN COPPER AND ZINC THE COMPANY SAID CHANGES IN METALS PRICES REDUCED ITS FIRSTQUARTER EARNINGS BY ABOUT 105 MILLION FROM 1993 IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY ASARCO CLOSED AT 23 UP 125 CENTS 9404260037 940426 WHAT'S NEWS BUSINESS AND FINANCE STOCKS ROCKETED ON ROBUST EARNINGS REPORTS FROM DUPONT AND BOEING AND A BUOYANT BOND MARKET THE DOW JONES INDUSTRIAL AVERAGE SHOT UP 5710 POINTS TO 370578 SURPASSING THE 3700 MARK FOR THE FIRST TIME IN NEARLY A MONTH IT WAS THE BIGGEST ONEDAY GAIN FOR THE INDUSTRIALS SINCE APRIL 5 THE TREASURY'S 30YEAR BOND ROSE OVER 3/4 POINT ITS YIELD WAS 715 DUPONT'S FIRSTQUARTER EARNINGS CLIMBED A STRONGERTHANEXPECTED 30 IN ANOTHER SIGN THAT THE CYCLICAL CHEMICAL INDUSTRY CONTINUES TO BENEFIT FROM THE ECONOMY'S RAPID GROWTH DIGITAL EQUIPMENT'S SALES CHIEF EDWARD LUCENTE QUIT IN THE WAKE OF A QUARTERLY LOSS PARTLY DUE TO RISING SALES COSTS AND RAMPANT DISCOUNTING THE COMPUTER MAKER'S BOARD IS GIVING ITS CHIEF EXECUTIVE OFFICER ROBERT PALMER ONE MORE QUARTER TO SHOW NEW PROGRESS TOWARD A TURNAROUND VIACOM IS STEPPING UP A CAMPAIGN TO CUT COSTS AND SELL ASSETS IN THE EXPECTATION THAT ITS MERGER WITH BLOCKBUSTER ENTERTAINMENT WILL COLLAPSE PEOPLE CLOSE TO THE COMPANY SAID BOEING REPORTED A 10 DECLINE IN FIRSTQUARTER EARNINGS BUT THE DROP WASN'T AS SHARP AS ANALYSTS EXPECTED BOEING SAID THE WEAKNESS AMONG AIRLINES SEEMS TO BE BOTTOMING OUT INDICATING ORDERS WILL START TO STRENGTHEN EXISTINGHOME SALES REBOUNDED IN MARCH SURGING 57 ON IMPROVED WEATHER AND RISING INTEREST RATES THAT ECONOMISTS SAID BROUGHT MORE BUYERS INTO AN ALREADY STRONG MARKET THE WHITE HOUSE PICKED FIVE TECHNOLOGY AREAS FOR RESEARCHANDDEVELOPMENT MONEY INCLUDING RESEARCH IN GENETICS AND MAKING CARS WEIGH LESS TIME WARNER SET UP A PANEL OF DIRECTORS TO EXAMINE WHETHER THERE HAS BEEN ANY WRONGDOING BY ITS INFLUENTIAL DEALMAKING ADVISER ODED ABOODI KMART SAID FISCAL FIRSTQUARTER EARNINGS FROM CONTINUING OPERATIONS ARE EXPECTED TO FALL WELL BELOW THE YEARAGO PERIOD'S 12 CENTS A SHARE TEXACO AND ATLANTIC RICHFIELD POSTED A SHARP DROP IN FIRSTQUARTER EARNINGS REFLECTING LOWER OIL PRICES FINANCIAL MARKETS AND THE FEDERAL GOVERNMENT WILL SHUT DOWN TOMORROW TO OBSERVE A NATIONAL DAY OF MOURNING FOR FORMER PRESIDENT NIXON MORTGAGE BANKER MARGARETTEN FINANCIAL SAID IT IS IN TALKS WITH SEVERAL MAJOR FINANCIAL INSTITUTIONS ABOUT A POSSIBLE SALE OF THE COMPANY ITS STOCK SOARED 4125 OR 28 TO 19125 AT&T PROPOSED A BILLIONDOLLAR PLAN FOR CONNECTING AFRICA WITH HIGHTECH COMMUNICATIONS AND IMPROVING SERVICE FOR MILLIONS OF CUSTOMERS PHILIP CHENOK SAID HE WON'T SEEK REELECTION TO A FOURTH FIVEYEAR TERM AS PRESIDENT OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS BONDS LEHMAN BROTHERS TREASURY INDEX 519354 UP 4224 COMMODITIES OIL 1724 A BARREL UP 10 CENTS DOW JONES FUTURES INDEX 13477 UP 018 SPOT INDEX 13068 UP 071 DOLLAR 10310 YEN OFF 015 16795 MARKS OFF 00105 9404260036 940426 COMMODITIES PRICES OF SOYBEAN FUTURES SURGE ON SHARP GAINS FOR CANOLA AND PALM OIL REDUCTION OF PLANTING BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL THE PRICES OF SOYBEAN FUTURES SURGED IN VOLATILE TRADING BUOYED BY SHARP INCREASES IN THE PRICES OF PALM OIL AND CANOLA ON THE CHICAGO BOARD OF TRADE THE SOYBEAN CONTRACT FOR JULY DELIVERY ENDED AT 6685 A BUSHEL UP 1075 CENTS ITS HIGHEST LEVEL IN ABOUT THREE WEEKS SOYBEANOIL FUTURES PRICES ALSO MOVED SHARPLY HIGHER WITH THE JULY CONTRACT FINISHING AT 2829 CENTS A POUND UP 066 CENT ANALYSTS SAID THE BEAN MARKET APPEARS TO HAVE BEEN SUPPORTED LARGELY BY THE SOARING PRICE OF CANOLA WHICH REACHED A 10YEAR HIGH IN TRADING ON THE WINNIPEG COMMODITY EXCHANGE IN CANADA ENDING AT 50160 CANADIAN DOLLARS US36310 A METRIC TON UP THE DAILY MAXIMUM OF C15 THE HIGH PRICE OF CANOLA IS LIKELY TO BE TRANSLATED INTO HIGHER PRICES FOR CANOLA OIL WHICH TOGETHER WITH PALM OIL SERVE AS SUBSTITUTES FOR SOYBEAN OIL IT LOOKS AS THOUGH IMPORTS OF CANOLA OIL FROM CANADA ARE GOING TO DROP AS THE PRICE OF CANOLA ITSELF RISES SAID ANNE FRICK ANALYST AT PRUDENTIAL SECURITIES IN NEW YORK THAT MEANS THERE WILL BE MORE INTEREST IN SOYBEAN OIL AS AN ALTERNATIVE TO CANOLA OIL IMPORTS BY ENDUSERS THE PRICE OF PALM OIL ALSO HAS MOVED STEADILY HIGHER IN THE LAST FEW WEEKS AND RUMORS OF INDIAN BUYING FOCUSED ATTENTION ON THE DOMESTIC ALTERNATIVE WEATHER ALSO EMERGED AS AN INDIRECT CAUSE FOR BULLISHNESS WITH RESPECT TO SOYBEANS GOOD WEATHER ALLOWED FARMERS TO MOVE AHEAD QUICKLY IN PLANTING CORN FUELING CONCERNS AMONG SOME INVESTORS THAT ACREAGE THAT MIGHT NORMALLY HAVE BEEN PLANTED IN A FEW WEEKS' TIME WITH SOYBEANS HAS BEEN SOWED WITH CORN THERE'S CERTAINLY A LOT OF TALK THAT UNLESS THERE'S A WET SPELL SOON FARMERS COULD END UP PLANTING A LOT MORE CORN THAN EXPECTED POSSIBLY CUTTING SOYBEAN YIELDS SAID DANIEL BASSE MARKET RESEARCH DIRECTOR OF AGRESOURCE CO IN CHICAGO MS FRICK NOTED THAT FARMERS MAKE A LASTMINUTE SWITCH FROM CORN INTO SOYBEANS AS THE PLANTING SEASON APPROACHES ITS END THE ABSENCE SO FAR THIS YEAR OF BAD WEATHER WHICH WOULD PREVENT THEM FROM SOWING ALL THEIR CORN AS PLANNED IS LEADING SOME INVESTORS TO SPECULATE THAT SOYBEAN YIELDS COULD DROP SHE SAID A CONTINUING CONCERN WHICH HAS HELPED SUSTAIN SOYBEAN PRICES OVER THE LAST FEW WEEKS ARE BRAZILIAN SHIPMENTS DELAYED BY LABOR DISPUTES AT PORTS THIS IS TURNING OUT TO BE IMPORTANT FOR US SINCE WE COULD SEE SOME EXPORT DEMAND SHIFTING NORTHWARD SAID MR BASSE A LARGE PART OF THE TRADING ACTIVITY IN THE LATE AFTERNOON WAS ACCOUNTED FOR BY COMMODITYFUND BUYING TRADERS REPORTED THEY SAID FURTHER STRONG UPWARD MOVES MIGHT WAIT UNTIL THURSDAY WHEN THE COMMERCE DEPARTMENT PLANS TO RELEASE ITS MONTHLY REPORT ON SOYBEAN STOCKS AND CRUSHING ACTIVITY WHICH WILL ALLOW INVESTORS TO CALCULATE DEMAND FOR BOTH SOYMEAL AND SOYBEAN OIL WHILE CORN PRICES REMAINED LITTLE CHANGED WHEAT FUTURES WERE BUOYED BY CONTINUING WORRIES ABOUT DRY WEATHER IN PARTS OF THE WHEAT BELT IN PARTS OF TEXAS FARMERS FAILED TO RECEIVE MUCH RAIN DURING THE RECENT WET SPELL AND NOW ARE BRACING FOR A POSSIBLE FREEZE AT A KEY POINT IN WHEAT'S REPRODUCTIVE CYCLE WHEAT FOR JULY DELIVERY ON THE CHICAGO BOARD OF TRADE ENDED AT 3175 A BUSHEL UP 35 CENTS IN OTHER COMMODITY MARKETS YESTERDAY COTTON COTTON FOR MAY DELIVERY MOVED SHARPLY HIGHER ON NEW YORK'S COTTON EXCHANGE AS DEALERS DEMONSTRATED STRONG INTEREST IN TAKING DELIVERY ON THE CONTRACT THE MAY CONTRACT ENDED THE DAY AT 8281 CENTS A POUND UP 172 CENTS A POUND HEAVY DELIVERIES WERE MADE DURING THE FIRST DAY OF THE NOTICE PERIOD FOR THE MAY CONTRACT SAID SANDRA KAUL SENIOR ANALYST AT SMITH BARNEY SHEARSON IN NEW YORK BUT PEOPLE STEPPED FORWARD TO TAKE ALL THE DELIVERIES WHICH GAVE THE MARKET A BULLISH TONE BERNARD SAVAIKO SENIOR ANALYST AT PAINEWEBBER INC SAID THAT DEALERS WHO RESELL COTTON TO DOMESTIC AND FOREIGN ENDUSERS APPEAR TO HAVE ACCOUNTED FOR MOST OF THE DELIVERIES HE NOTED THAT DRY WEATHER IN PARTS OF THE COTTON BELT NOTABLY WEST TEXAS ARE HELPING BOOST PRICES OF OTHER COTTONFUTURES CONTRACTS ALTHOUGH THESE FELL BACK FROM THEIR HIGHS OF THE DAY ON A WAVE OF PROFITTAKING PRECIOUS METALS WITH THE SOUTH AFRICAN ELECTIONS SET TO BEGIN TODAY INVESTORS PUSHED THE PRICES OF PRECIOUSMETALS FUTURES HIGHER IN RATHER THIN TRADING ON NEW YORK'S COMMODITY EXCHANGE JUNE GOLD MOVED UP 280 AN OUNCE TO END AT 37490 WHILE SILVER FOR MAY DELIVERY ENDED AT 5130 AN OUNCE UP THREE CENTS ON THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR JULY DELIVERY FINISHED AT 39500 AN OUNCE UP 390 WHILE SILVER REGAINED ONLY SOME OF ITS LOSSES FRIDAY GOLD AND PLATINUM MOVED MORE STRONGLY HIGHER ON REPORTS OF THE CAR BOMB DETONATED IN JOHANNESBURG ON SUNDAY MORNING BUT INVESTORS REMAIN UNCERTAIN OF WHAT IMPACT THIS VIOLENCE WILL HAVE ON FUTURES PRICES SAID PAINEWEBBER'S MR SAVAIKO AND ARE RELUCTANT TO MAKE MAJOR COMMITMENTS AHEAD OF TOMORROW WHEN EARLY RESULTS OF THE SOUTH AFRICAN VOTE SHOULD EMERGE UNFORTUNATELY MR SAVAIKO ADDED US FUTURES MARKETS ARE SCHEDULED TO BE CLOSED THAT DAY IN HONOR OF FORMER US PRESIDENT RICHARD NIXON WHO DIED FRIDAY THAT WILL LEAVE PRECIOUSMETALS INVESTORS IN A QUANDARY HE SAID WITHOUT MUCH ABILITY TO MANEUVER ALL MAJOR US FUTURES EXCHANGES WILL CLOSE TOMORROW AND REOPEN AS USUAL THURSDAY MORNING 9404260035 940426 PEPPERAND SALT HAS KEPT UP WITH THE INFLATION AMONG OTHER THINGS FAR WORSE THE MORE ILLTEMPERED MOUTH A CURSE 9404260034 940426 PHILIP MORRIS STILL STUDIES SEPARATING FOOD TOBACCO NEW YORK PHILIP MORRIS COS SAID ITS BOARD CONSIDERED THE POSSIBILITY OF SEPARATING ITS FOOD AND TOBACCO BUSINESS AT ITS ANNUAL STRATEGY MEETING OVER THE WEEKEND THE BOARD MADE NO DECISION BUT IS CONTINUING TO STUDY THE MATTER THE COMPANY SAID IN A STATEMENT THE POSSIBILITY OF A BREAKUP WAS DISCLOSED APRIL 14 YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE PHILIP MORRIS CLOSED AT 5225 DOWN 75 CENTS ON VOLUME OF 19 MILION SHARES 9404260032 940426 BUSINESS WORLD BANK ON IT UPHEAVAL BREEDS DERIVATIVES BY TIM W FERGUSON ON THE WALL OF CHARLES SMITHSON'S OFFICE IN PRINCETON NJ IS A CONFEDERATE BOND THAT HE LIKES TO CALL A DUALCURRENCY COMMODITY CONVERTIBLE WITH OPTIONAL DELIVERY A CIVIL WARERA FINANCIAL DERIVATIVE IN EXPLAINING THE MODERN VARIETY OF THESE PRODUCTS FOR CHASE MANHATTAN A MAJOR DERIVATIVES ISSUER MANAGING DIRECTOR SMITHSON OF THE BANK'S RISKMANAGEMENT RESEARCH UNIT LIKES TO EMPLOY HISTORY IT'S A TECHNIQUE HE USED AS A TEXAS A&M ECONOMICS PROFESSOR IN THE 1970S WHEN HE WROTE A BOOK THE DOOMSDAY MYTH TO DISPEL THE IDEA THAT THE WORLD WAS RUNNING OUT OF OIL NOW THERE'S A MINIPANIC OVER DERIVATIVES WHOSE UNWINDING IS BLAMED FOR DRAGGING DOWN THE MARKETS MR SMITHSON POINTS OUT THAT CONCEPTUALLY THEY'RE LITTLE DIFFERENT FROM WHAT THE JAPANESE RICE TRADERS OR THE DUTCH EXPLORERS WERE DOING IN THE 17TH CENTURY WITH CRUDE OPTIONS THE PRINCIPLE IS TO SPREAD RISK AND REWARD SO THAT UNCERTAINTY DOESN'T INHIBIT COMMERCE EVEN IN ARISTOTLE'S TIME HE SAYS OLIVE PRESSES WERE OPTIONED BECAUSE OF CROP VOLATILITY OVER THE AGES HEDGING HAS DIMINISHED WHEN CONDITIONS SETTLED DOWN NO SUCH LUCK TODAY AFTER 25 YEARS OF INTERNATIONAL ECONOMIC UPHEAVAL DEMAND IS UP FOR PRODUCTS THAT MITIGATE RISKS AND CAN BE USED TO CAPITALIZE ON THEM BANKS AND OTHER FINANCIAL INSTITUTIONS THAT DESIGN THESE HEDGES ARE NOW AT THE CENTER OF CONTROVERSY AS CURRENCIES ZIGGED AND INTEREST RATES ZAGGED IN RECENT WEEKS UNEXPECTEDLY BIG LOSSES HAVE BEEN FELT IN DERIVATIVES INSTEAD OF RISK BEING CONTROLLED IT SEEMS TO HAVE EXPLODED HAS THEORY BEEN TURNED ON ITS HEAD IS THIS AS HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ CALLED IT THIS MONTH A GIANT GLOBAL ELECTRONIC PONZI POSSIBILITY THE THEORY BEHIND DERIVATIVES IS THAT BY ALLOWING ANY EXPOSURE TO BE HEDGED WITH ECONOMIC SIDEBETS STRESS WILL BE TAKEN OFF THOSE INSTITUTIONS MOST EXPOSED TO A TURN IN THE ECONOMY CASE IN POINT THE 1980S THRIFT CRISIS ALTHOUGH THE S&L STORY HAD MANY SIDEBARS THE INDUSTRY WAS BASICALLY RAVAGED BY AN UNHEDGED MISMATCH OF LONGTERM MORTGAGES AT LOW RATES AND INTERESTBEARING DEPOSITS AT RISING RATES LESSER EXTREMES OF THAT CLASH EXIST THROUGHOUT THE MARKETPLACE AND THE TASK OF CREATIVE FINANCE BANKING AT ITS BEST REALLY IS TO RESOLVE THEM SOME FUDDYDUDDIES CAVIL THAT DERIVATIVES HAVE DISRUPTED GOOD OLD STOCKS AND BONDS BUT GIVEN THE UNSTEADINESS OF TODAY'S ECONOMY ANYONE WHO PREFERS TO HAVE MARKETS ALLOCATE RESOURCES AS OPPOSED TO ADMINISTRATIVE FIAT OUGHT TO WELCOME THE NOTION OF HIGHTECH HEDGING WITHOUT IT BUSINESSES WOULD HAVE TO AVOID THE ELEMENTS IN MUCH MORE CUMBERSOME WAYS SUCH AS MOVING PLANTS AROUND AS CURRENCIES FLUCTUATE INSTEAD WE HAVE ANALYSTS PLAYING MULTIDIMENSIONAL CHESS SWAPPING RISKS TO MATCH AND COVER WHILE REQUIRING THE LEAST DEADWEIGHT LOSS CAPITAL CUSHIONS TO THE ECONOMY FOR EXAMPLE IT'S BETTER FOR A CORPORATION TO HAVE PAID 5000 FOR AN ARCANE OPTION THAN TO KEEP LIQUID 500000 TO COVER AN EXIGENCY THE HALF MILLION CAN BE INVESTED IN TRYING TO MODEL FOR UNTOLD CIRCUMSTANCES OR SIMPLY BEING SHORTRUN GREEDY THE DESIGNERS OR THE BUYERS OF DERIVATIVES HAVE MADE ERRORS AND THESE HAVE MADE NEWS BUT USUALLY THESE THINGS WORK A RECENT CHASE MANHATTAN RESEARCH PAPER FINDS THAT CORPORATIONS HEDGING THROUGH USE OF HYBRID DEBT SIGNIFICANTLY DECREASED THEIR RISK EXPOSURE AND THUS THEIR COST OF CAPITAL THAT IS WHAT THE LONGRUN INCENTIVES IN LENDING WOULD PREDICT BANKS HAVE AN INTEREST IN IMPROVING THE CREDIT OF THEIR CLIENTS A BANK OR OTHER DERIVATIVES DEALER MAY TAKE A HIT IF THINGS GO WRONG ONE WAY THAT CAN HAPPEN IS WHEN THE PURCHASING COMPANY WANTS NOT TO HEDGE BUT TO TRADE ON ITS RESERVES FOR PROFIT UNIVERSITY OF ROCHESTER FINANCE PROF CLIFFORD SMITH OBSERVES THAT DERIVATIVES ISSUERS ARE GOING TO BE LESS PICKY ABOUT THE INTENTIONS OF A TOPRATED COMPANY WHOSE TOP FINANCIAL OFFICER MIGHT WANT TO BET ON SAY A RISING YEN IF HE'S WRONG THE STOCKHOLDERS ARE GOING TO BEAR PRIMARY COSTS OF INAPPROPRIATE OR INEFFECTIVE SPECULATION ON THE OTHER HAND WITH SMALLER COMPANIES WITH LOWER RATED CREDITS AS A DEALER IN THIS MARKET I'M GOING TO WORRY A LOT MORE ABOUT UNDERLYING BUSINESS EXPOSURE OF THE CLIENT THROUGH VARIOUS SAFEGUARDS FEDERAL REGULATORS FOUND IN ONE SURVEY OF SELECTED BANKS THE DEALER INSTITUTIONS HAD LIMITED THEIR OWN EXPOSURE IN THIS ALLEGEDLY SCARY ARENA TO 2 OF EQUITY CAPITAL ANOTHER RECENT SURVEY BY THE WASHINGTONBASED GROUP OF 30 AN ASSOCIATION OF MAJOR FINANCIAL HOUSES FOUND THAT ALTHOUGH LESS THAN HALF OF RESPONDING INSTITUTIONS SAID THEY SUBJECTED THEIR PORTFOLIOS TO MULTIPLE STRESS TESTS INCLUDING A LIQUIDITY SQUEEZE STRONG MAJORITIES PLANNED TO DO SO SOON AND THE MAJOR PLAYERS WHICH ACCOUNT FOR 75 OR MORE OF THE DERIVATIVES MARKET ALREADY DO ALONG THE WAY ENTREPRENEURIAL FINANCE HAS SPAWNED A BURGEONING MARKET FOR COMPUTER PROGRAMS TO HELP THE QUANTITATIVE BRAINS KEEP COUNT ROD BECKSTROM CEO OF C ATS SOFTWARE IN SILICON VALLEY ESTIMATES HIS SUBINDUSTRY HAS REACHED 250 MILLION IN SALES NEVERTHELESS SOME POLITICIANS AND OTHER WORRYWARTS SAY THE SITUATION IS OUT OF CONTROL IT BOTHERS THEM WHEN THE ACTION IS OFF BALANCE SHEETS AND OUT OF REGULATORY SIGHTS WHERE REGULATION EXISTS IT IS CARVED INTO COMPETING JURISDICTIONS BUT SOME SCHOLARS SUCH AS HARVARD BUSINESS PROF ROBERT MERTON THINK DIVERSIFIED THOUGH MORE RATIONALLY STRUCTURED REGULATION CAN LIKE DISPERSED RISK PROMOTE STABILITY THE CONTROL CROWD WANTS TO IMPOSE FINANCIAL RESTRAINTS TO SETTLE THE FEVER REP GONZALES SUGGESTED A TAX ON DERIVATIVE USE OTHERS WANT CAPS ON BANK ACTIVITY IN THIS AREA THE BASLE COMMITTEE IN SWITZERLAND ON BEHALF OF INTERNATIONAL BANKING REGULATORS IS AT WORK ON REFINING CAPITAL RESERVE REQUIREMENTS A FORM OF TAX FOR DERIVATIVE EXPOSURE THOSE WHO WANT TO REIN IN A DISLOCATIVE INFLUENCE IN THE MARKETS NEED TO UNDERSTAND THAT EVERY TAX OR TRADING LIMIT DISCOURAGES MARGINAL CAPITAL FROM ENTERING OWNERS OF WEALTH DON'T WANT TO HAVE THEIR ESCAPE ROUTES BLOCKED OR THEIR YIELDS DIMINISHED AND WHEN THEY STAY OUT LIQUIDITY THE CAPACITY TO TRADE AT SOME REALISTIC PRICE IS REDUCED AND RISK FOR EVERYONE IS INCREASED BACK WHEN MR SMITHSON'S CONFEDERATE BOND WAS ISSUED TEXTILE MILLS IN LONDON AND PARIS WANTED NOT ONLY TO GUARD AGAINST DEVALUATION BUT TO HEDGE THE POSSIBILITY THAT A LONG CIVIL WAR WOULD DEPLETE COTTON SUPPLIES AND SEND PRICES SKYWARD THE NOTE ENTITLED THEM TO THE GOODS IF THEY COULD BUST A BLOCKADE AFTER DEFEAT AT VICKSBURG SEALED THE SOUTH'S FATE THE PAPER LOST WORTH BUT THE IDEA HAS BEEN SPUN INTO THE THREADS OF A USEFUL IF LEAKY CANOPY FOR A GRANDER YET STILL GUNSHY GLOBAL ECONOMY 9404260031 940426 BUSINESS BRIEF OREGON STEEL MILLS INC COMPANY POSTS 46 DECLINE IN FIRSTQUARTER EARNINGS OREGON STEEL MILLS INC SAID FIRSTQUARTER EARNINGS DROPPED 46 BECAUSE OF HIGHER SCRAP METAL PRICES AND TIGHTER MARGINS THE PORTLAND OREBASED MAKER OF STEEL PRODUCTS SAID IT EARNED 37 MILLION OR 18 CENTS A SHARE ON SALES OF 2148 MILLION A YEAR EARLIER OREGON STEEL HAD EARNINGS OF 68 MILLION OR 35 CENTS A SHARE ON SALES OF 149 MILLION SALES INCREASES WERE MAINLY DUE TO INCLUSION OF CF&I STEEL WHICH OREGON STEEL PURCHASED MARCH 3 OPERATING MARGINS IN THE FIRST QUARTER FELL TO 35 FROM 83 A YEAR AGO THE COMPANY SAID MARGINS REFLECTED HIGHER PRICES FOR RAW MATERIAL MAINLY SCRAP METAL WHICH THE COMPANY SAID WAS SELLING AT ITS HIGHEST PRICE IN FIVE YEARS MARGINS WERE ALSO HURT BY LOWER SELLING PRICES ON LARGEDIAMETER PIPE SHIPPED FROM THE COMPANY'S NAPA CALIF MILL 9404260029 940426 BUSINESS BRIEF NATIONAL STEEL CORP STEELMAKER POSTS PROFIT REFLECTING SPECIAL GAIN NATIONAL STEEL CORP POSTED A FIRSTQUARTER PROFIT OF 78 MILLION REFLECTING A 1079 MILLION SPECIAL GAIN VS A YEAREARLIER NET LOSS OF 702 MILLION SALES ROSE 6 TO 6227 MILLION EXCLUDING THE GAIN NATIONAL HAD A LOSS OF 197 MILLION BUT THE NATION'S FOURTHBIGGEST STEELMAKER SAID IT EXPECTS TO REPORT AN OPERATING PROFIT IN THE SECOND QUARTER AND FOR THE REST OF THE YEAR ASSUMING THAT THE ECONOMY CONTINUES TO IMPROVE THE MISHAWAKA IND COMPANY HAS BEEN PLAGUED BY OPERATIONAL AND DELIVERY PROBLEMS LIMITING ITS ABILITY TO PARTICIPATE IN THE STEEL MARKET'S RESURGENCE BUT DURING THE FIRST QUARTER IT SAID IT CONTINUED TO MAKE GOOD PROGRESS IN STABILIZING ITS OPERATIONS AND CORRECTING OPERATIONAL AND DELIVERY PROBLEMS ON A PERSHARE BASIS NATIONAL EARNED 207 VS A LOSS OF 281 A YEAR EARLIER THE SPECIAL GAIN IN THE 1994 QUARTER CAME FROM A COURT JUDGMENT IN AN ANTITRUST CASE INVOLVING USX CORP'S FORMER BESSEMER & LAKE ERIE RAILROAD UNIT THE LOSS IN THE 1993 FIRST QUARTER INCLUDED A 165 MILLION CHARGE FOR AN ACCOUNTING CHANGE 9404260028 940426 SALOMON'S QUARTERLY NET OF 66 MILLION FALLS FAR BELOW WALL STREET'S ESTIMATES BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SALOMON INC POSTED A PALTRY 66 MILLION IN FIRSTQUARTER NET INCOME BECOMING THE FIRST MAJOR SECURITIES FIRM TO REPORT PROFIT THAT FELL FAR SHORT OF WALL STREET'S EXPECTATIONS SALOMON WHOSE EARNINGS ARE NOTORIOUSLY VOLATILE BECAUSE THEY RELY HEAVILY ON BIG TRADING BETS AT THE SALOMON BROTHERS INC BROKERAGE UNIT POSTED NET INCOME OF 48 CENTS A SHARE THAT WAS WELL BELOW THE 157 THAT WALL STREET ANALYSTS WERE EXPECTING ACCORDING TO I/B/E/S AN EARNINGSESTIMATE TRACKING FIRM AND IT WAS CLEARLY FAR SHORT OF WHAT SALOMON'S OWN MANAGEMENT WAS HOPING THE FIRM WOULD EARN FIRSTQUARTER RESULTS WERE DISAPPOINTING AS THE SHARP DOWNDRAFT IN SECURITIES PRICES THAT OCCURRED IN THE LATTER PART OF THE QUARTER BROUGHT LOSSES IN SEVERAL OF THE TRADING BUSINESSES CONDUCTED AS PART OF SALOMON BROTHERS' CLIENTDRIVEN BUSINESSES SAID ROBERT E DENHAM CHAIRMAN AND CHIEF EXECUTIVE OFFICER INVESTORS EXPRESSED DISAPPOINTMENT OVER SALOMON'S FIRSTQUARTER RESULTS DRIVING THE STOCK LOWER EVEN AS MOST OTHER STOCKMARKET INDEXES RALLIED SHARPLY IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE SALOMON SLIPPED 75 CENTS TO 48875 LAST YEAR SALOMON ALSO HAD A ROUGH FIRST QUARTER POSTING A LOSS OF 102 MILLION OR 110 A SHARE AFTER AN ACCOUNTING CHARGE THAT WIDENED THE DEFICIT BY 34 CENTS REVENUE FOR THE LATEST QUARTER WAS 18 BILLION UP FROM 16 BILLION A YEAR EARLIER IN THE LATEST QUARTER SALOMON BROTHERS THE GLOBAL INVESTMENT BANKING AND SECURITIES BUSINESS EARNED 39 MILLION BEFORE TAXES REVERSING A YEAREARLIER LOSS OF 89 MILLION TOTAL REVENUE FOR SALOMON BROTHERS EXCLUDING INTEREST EXPENSE WAS 596 MILLION UP FROM 405 MILLION A YEAR EARLIER SALOMON BROTHERS HAS STARTED BREAKING OUT EARNINGS FOR ITS CLIENTDRIVEN BUSINESSES SINCE THE MIDDLE OF LAST YEAR THE CLIENT BUSINESS INCLUDES MARKETMAKING ACTIVITIES AND SHORTTERM POSITIONING IN SECURITIES BUT ANALYSTS SAY IT WAS DIFFICULT TO DETERMINE WHAT LOSSES WERE ATTRIBUTABLE TO ROUTINE MARKETMAKING AND WHAT OCCURRED BECAUSE OF SOURED SHORTTERM TRADING POSITIONS THE DISAPPOINTING RESULTS IN THE SUBSIDIARY'S CLIENTDRIVEN BUSINESSES WERE ATTRIBUTABLE TO LOSSES IN FOREIGN EXCHANGE AND INTERNATIONAL SECONDARY MARKETS AND A DROP IN US SECONDARYMARKET REVENUE SALOMON SAYS SALOMON BROTHERS' CLIENTDRIVEN BUSINESSES SHOWED A PRETAX 173 MILLION LOSS IN THE FIRST QUARTER AS TOTAL REVENUE PLUNGED TO 255 MILLION FROM 659 MILLION A YEAR EARLIER THE FIRM ATTRIBUTED THE DROP IN REVENUE TO DECLINES IN THE VALUE OF INVENTORY POSITIONS AND TO AN OVERALL SLUMP IN CUSTOMERTRADING VOLUME LATE IN THE QUARTER WHAT'S INTERESTING ABOUT THIS QUARTER'S RESULTS IS THAT THEY WERE NOT GENERATED BY THE PROPRIETARYTRADING BUSINESS WHICH DID QUITE WELL BUT BY THE CLIENT BUSINESS WHICH PEOPLE THOUGHT WAS QUITE STABLE SAID GUY MOSZKOWSKI AN ANALYST AT SANFORD C BERNSTEIN & CO INDEED SALOMON BROTHERS' PROPRIETARYTRADING BUSINESS EARNED 212 MILLION BEFORE TAXES IN THE FIRST QUARTER REVERSING A YEAREARLIER LOSS OF 319 MILLION REVENUE FROM PROPRIETARY TRADING TOTALED 341 MILLION A TURNAROUND FROM LAST YEAR'S NEGATIVE 254 MILLION SALOMON'S PHIBRO DIVISION WHICH TRADES COMMODITIES FINALLY STARTED TO MAKE SIGNIFICANT CONTRIBUTIONS TO THE FIRM'S BOTTOM LINE AFTER A STRING OF POOR QUARTERS PHIBRO REPORTED PRETAX EARNINGS OF 50 MILLION UP FROM 6 MILLION A YEAR EARLIER PHIBRO TOOK ADVANTAGE OF TRADING OPPORTUNITIES IN OIL MARKETS AS PRICES ROSE AND VOLATILITY INCREASED SALOMON SAID THE RESULTS IN THE FIRST QUARTER UNDERSCORE THE FACT THAT SALOMON'S ENERGY BUSINESS WILL OFFSET A BAD PERIOD IN THE BOND BUSINESS SAID MR MOSZKOWSKI 9404260027 940426 BUSINESS BRIEF GOOD GUYS INC FISCAL 2NDPERIOD NET ROSE SEVENFOLD ON STATE REBOUND GOOD GUYS INC SAID ITS FISCAL SECONDQUARTER EARNINGS INCREASED MORE THAN SEVENFOLD CITING CALIFORNIA'S REBOUNDING ECONOMY THE SAN FRANCISCO CONSUMERELECTRONICS RETAILER SAID EARNINGS FOR THE QUARTER ENDED MARCH 31 WERE 28 MILLION OR 21 CENTS A SHARE UP FROM 352000 OR THREE CENTS A SHARE A YEAR EARLIER SALES ROSE 37 TO 1599 MILLION FROM 1164 MILLION ROBERT A GUNST GOOD GUYS CHIEF EXECUTIVE OFFICER SAID SECONDQUARTER SALES GROWTH HAD BEEN REFLECTED ACROSS THE BOARD AT THE CHAIN'S 47 CALIFORNIA STORES THE COMPANY SAID IT ANTICIPATES ENTERING NEW MARKETS IN LAS VEGAS AND THE PACIFIC NORTHWEST IN 1995 AND WILL EXPAND ITS DISTRIBUTIONANDSERVICE CENTER IN HAYWARD CALIF TO ACCOMMODATE THE GROWTH 9404260026 940426 ECONOMY EXISTING HOMES SAW SALES RISE 57 IN MARCH INCREASING INTEREST RATES AND IMPROVED WEATHER ATTRACT MORE BUYERS BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL SALES OF PREVIOUSLY OWNED HOMES REBOUNDED SMARTLY IN MARCH SURGING 57 ON A COMBINATION OF IMPROVED WEATHER AND RISING INTEREST RATES THAT ECONOMISTS SAY JOLTED EVEN MORE BUYERS INTO AN ALREADY STRONG MARKET SINGLEFAMILY EXISTINGHOME SALES ROSE TO 406 MILLION ON A SEASONABLY ADJUSTED ANNUALIZED BASIS FROM A REVISED PACE OF 384 MILLION IN FEBRUARY ACCORDING TO THE NATIONAL ASSOCIATION OF REALTORS SEVERE WINTER WEATHER CONDITIONS IN EASTERN PARTS OF THE COUNTRY HAD CONTRIBUTED TO A NEARLY 10 DROP IN SALES DURING FEBRUARY THE MARCH SALES WHICH WERE UP 18 FROM THE YEAREARLIER MONTH REFLECT BOOMLEVEL HOUSING ACTIVITY TRANSACTION VOLUMES CONTINUED STRONG IN THE SOUTH AND MIDWEST WHERE ECONOMIC CONDITIONS REMAIN BETTER THAN IN OTHER PARTS OF THE COUNTRY THE ONCEBATTERED COASTS ARE ALSO JOINING IN THE RECOVERY WITH SALES UP 28 IN THE WEST AND 14 IN THE NORTHEAST FROM A YEAR EARLIER CALIFORNIA'S HOUSING RECOVERY ALSO PICKED UP STEAM WITH THE STATE'S 511000 RESALES UP 31 FROM A YEAR EARLIER THE BIGGEST INCREASE IN SEVEN YEARS CLEARLY THE STRONGER EMPLOYMENT PICTURE AND HIGHER LEVELS OF CONSUMER CONFIDENCE CONTINUE TO SUPPORT THE MARKET SAID MARK M ZANDI CHIEF ECONOMIST FOR REGIONAL FINANCIAL ASSOCIATES INC AN INDUSTRY CONSULTING FIRM IN WEST CHESTER PA JOHN A TUCCILLO CHIEF ECONOMIST FOR THE NATIONAL ASSOCIATION OF REALTORS SAID THE RISING INTEREST RATES PROPELLED FENCE SITTERS INTO THE MARKET WHO WANT TO LOCK IN RATES BEFORE THEY GO ANY HIGHER HE SAID THE MARCH ACTIVITY WAS ALSO BOOSTED BY MILDER WEATHER IN MANY PARTS OF THE COUNTRY AS WELL AS AN UNDERLYING STRONGER ECONOMY THE ECONOMIC RECOVERY IS KICKING IN MR TUCCILLO SAID THE HOUSING RECOVERY MAY LOSE SOME STEAM IN COMING MONTHS THOUGH AS SOME ECONOMISTS WORRY THAT THE HIGHER INTEREST RATES WILL PRICE SOME PROSPECTIVE BUYERS OUT OF THE MARKET UNDER MONETARY TIGHTENING BY THE FEDERAL RESERVE THE 30YEAR FIXEDRATE MORTGAGE HAS JUMPED A PERCENTAGE POINT TO ABOUT 85 IN THE PAST SIX MONTHS ALREADY BUILDERS RESPONDING TO A RECENT SURVEY BY THE NATIONAL ASSOCIATION OF HOME BUILDERS REPORTED LOSING SOME POTENTIAL BUYERS BECAUSE THEY COULD NO LONGER QUALIFY FOR A MORTGAGE AT THE NEW RATES WEEKLY SURVEYS OF MORTGAGE VOLUME BY THE MORTGAGE BANKERS ASSOCIATION OF AMERICA SHOW THAT HOMEBUYING ACTIVITY WHILE STILL QUITE STRONG HAS TAPERED OFF IN RECENT WEEKS THIS IS NOT A TIME TO BE A CHEERLEADER FOR HIGHER RATES SAID DAVID SEIDERS CHIEF ECONOMIST FOR THE HOME BUILDERS' GROUP MANY ECONOMISTS THINK RATES AREN'T HEADED UP MUCH HIGHER THOUGH AND THAT IN FACT THEY MIGHT WELL COME DOWN A HALF PERCENTAGE POINT OR MORE BY THE END OF THE YEAR REALTORS SAY THEIR SALES SHOW NO LETUP WE HAD THE BEST FIRST QUARTER IN ABOUT FOUR YEARS AND I THINK THERE'S NOTHING TO STAND IN THE WAY OF HAVING A VERY GOOD REALESTATE YEAR SAID BRUCE OSELAND SENIOR VICE PRESIDENT OF MARKETING AT CENTURY 21 REAL ESTATE CORP THE IRVINE CALIF HOME BROKERAGE UNIT OF METROPOLITAN LIFE INSURANCE CO WE ARE EXPERIENCING RECORD MONTHS RECORD QUARTERS ADDED RAY SCULFORT VICE PRESIDENT AT BETTER HOMES & GARDENS REAL ESTATE SERVICE THE DES MOINES IOWA REALESTATE BROKERAGE ARM OF MEREDITH CORP STRONG SALES HAVE SPREAD FROM NEW ENGLAND TO FLORIDA TO CALIFORNIA HE SAID 9404260025 940426 LEISURE & ARTS ON SPORTS KNICKS KNOCK OFF BULLS IN SEASONENDER BY FREDERICK C KLEIN CHICAGO THE NATIONAL BASKETBALL ASSOCIATION REGULAR SEASON ALL SIX MONTHS OF IT ENDED HERE SUNDAY AFTERNOON WITH BOTH A WHIMPER AND A BANG THE WHIMPER WAS THE LACK OF IMPORTANCE ON PAPER OF A LASTGAME MATCHUP BETWEEN THE NEW YORK KNICKS AND CHICAGO BULLS IF A FEW COULDAS SHOULDAS AND WOULDAS HAD WORKED OUT THE CONTEST MIGHT HAVE DECIDED THE NO 1 PLAYOFF SEED IN THE LEAGUE'S EASTERN CONFERENCE BUT ALAS FOR THEM BOTH TEAMS STUMBLED EN ROUTE SO WHATEVER THE OUTCOME THE KNICKS COULD DO NO BETTER THAN SECOND PLACE BEHIND THE ATLANTA HAWKS AND THE BULLS NO BETTER THAN THIRD OF BANGS THERE WERE MANY HOWEVER MOST OF THEM DEALT BY THE VICTORIOUS VISITORS THE LOUDEST CAME AS THE THIRD QUARTER ENDED AND THE KNICKS' GREG ANTHONY AND THE BULLS' HORACE GRANT REACHED THE SAME SPOT AT THE SAME TIME THE COLLISION PUT ANTHONY ON THE FREETHROW LINE AND GRANT ON THE BENCH AND ALTHOUGH GRANT WAS LATER DEEMED TO HAVE INJURED MAINLY HIS DIGNITY HE SAW NO FURTHER SERVICE OTHER KNICK KNOCKS WERE LESS SHOWY BUT NO LESS EFFECTIVE THEIR TRADEMARK INYOURSHIRT DEFENSE SMOTHERED THE CHICAGO SHOOTERS TO THE POINT WHERE AS OFTEN AS NOT THE BULLS WERE THROWING UP PRAYER BALLS TO BEAT THE 24SECOND SHOT CLOCK OF THOSE THAT CAME DOWN JUST OVER ONE IN THREE 37 CONNECTED A PROPORTION THAT WOULD SHAME MANY HIGHSCHOOL SQUADS A ONESIDED FINAL SCORE OF 9276 WAS THE RESULT LOW STAKES OR NO STAKES THE PERFORMANCE PRODUCED SMILES IN THE KNICKS LOCKER ROOM WE PLAYED HARD AND THEY DID TOO THERE WAS PLENTY OF BANGING BUMPING AND TALKING TRASH NOTED PATRICK EWING THE NEW YORK GIANT I'D SAY WE'RE READY FOR THE PLAYOFFS THAT WAS MORE THAN THE KNICKS COACH PAT RILEY COULD SAY A WEEK AGO AFTER A LOSS TO THE SOSO CHARLOTTE HORNETS THE TEAM'S FIFTH IN AN EIGHTGAME SPAN HAD WOUNDED ITS CONFERENCELEADERSHIP HOPES RILEY DECRIED HIS CREW'S LACK OF ENERGY AND QUESTIONED HIS OWN NET WORTH WE'RE NOT MAKING THE KIND OF EFFORT WE NEED TO BE SUCCESSFUL HE SAID AT THE TIME HE ADDED HARKING BACK TO THE PLAYOFF DISAPPOINTMENTS OF HIS TWO PREVIOUS SEASONS IN GOTHAM SOMEWHERE I'VE FAILED MISERABLY TRYING TO REALLY DEFINE THE DIFFERENCE BETWEEN JUST WINNING GAMES AND BEING A WINNER THINGS GOT WORSE FROM THERE ANOTHER LOSS FOLLOWED AGAINST ATLANTA AND RILEY SUSPENDED HUSKY ANTHONY MASON FOR SHORTCOMINGS RILEY TERMED ATTITUDINAL BUT A FEW GARDENVARIETY WINS IN HIS TEAM'S LAST THREE GAMES TURNED AROUND THE COACH'S FROWN WE'RE PLAYING OUR GAME AGAIN HE BEAMED ON SUNDAY THE KNICKS' GAME IS DEFENSE AND IT DESERVES MORE THAN PASSING COMMENT THEIR POINTSALLOWED AVERAGE OF 915 A GAME IN THE JUSTCONCLUDED CAMPAIGN WAS THE LEAGUE'S FOURTH LOWEST SINCE THE INCEPTION OF THE SHOT CLOCK IN 195455 ALL OF THE FIGURES THAT BETTER IT WERE POSTED IN THAT LONGAGO INITIAL SEASON WHEN THE SHOOTER'S ART WAS FAR LESS DEVELOPED THAN IT IS TODAY THE NEW YORKERS UNDER RILEY HAVE TAKEN ADVANTAGE OF A MUSCULAR ROSTER TO FORGE A BUMPANDGRIND DEFENSIVE STYLE THAT GAVE A HARD SHOVE TO PREVIOUS LIMITS ON BASKETBALL PHYSICALITY NBA REFEREES WENT ALONG OTHERS HAVE PICKED UP THE CUE AND THE SIX TEAMS WITH THE BEST POINTSALLOWED MARKS THIS TERM NEW YORK SAN ANTONIO CHICAGO ATLANTA HOUSTON AND SEATTLE ALSO SHONE IN THE WONLOST COLUMN THEY'LL LEAD THE ADVANCE INTO THE EIGHTWEEK CHAMPIONSHIP TOURNAMENT THAT DEPENDING ON YOUR POINT OF VIEW SHAPES UP AS THRILLING UGLY OR BOTH THAT THE BULLS WOUND UP 5527 IN THE STANDINGS TO ATLANTA'S AND NEW YORK'S 5725 WAS WITHOUT DOUBT THE SEASON'S BIGGEST SURPRISE THE CHICAGOANS ARE THE NBA'S THREETIME DEFENDING CHAMPS BUT THEY PLAYED THE YEAR WITHOUT A CERTAIN SHAVENPATED FELLOW WHO CHUCKED THE HOOPS SPORT PREMATURELY IN FAVOR OF ONE IN WHICH HE CAN TAKE HIS SHOTS WITHOUT GETTING HAMMERED THE BULLS WERE FORCED TO MAKE DO WITH A CROATIAN FORWARD TONI KUKOC AN AUSTRALIAN CENTER LUC LONGLEY AND VARIOUS NATIVE CASTOFFS IN ADDITION TO THEIR AMBULATORY CORE OF GRANT SCOTTIE PIPPEN AND BJ ARMSTRONG THE TEAM THAT EMERGED HAD SLENDER CREDENTIALS IT COULD PLAY SOME DEFENSE AND SHOOT IF LEFT ALONE NONETHELESS IT DISPLAYED UNSUSPECTED RESOURCES REELING OFF 10 STRAIGHT LATESEASON WINS AND AFTER A LOSS IT WALLOPED THE HAWKS AT CHICAGO STADIUM A WEEK AGO MONDAY NIGHT IT WOULD HAVE RULED THE EAST AGAIN HAD IT WON ITS LAST TWO GAMES BOTH AT HOME AGAINST THE NOLONGERSTRONG BOSTON CELTICS AND KNICKS BUT SUFFERING FROM WHAT COACH PHIL JACKSON CALLED TOO MUCH LOOKING BEYOND THE BULLS ALLOWED THE CELTS TO AMBUSH THEM IN DOUBLE OVERTIME FRIDAY NIGHT AND THEN THE KNICKS KICKED THE CORPSE WE'D LIKED TO HAVE FINISHED BETTER BUT WE'LL TAKE THE RECORD WE'VE GOT SAID BULLS GUARD STEVE KERR THEY HAVE NO CHOICE THE BULLS' FIRST PLAYOFF FOE STARTING FRIDAY IS THE CLEVELAND CAVALIERS WHO BEAT THEM THREE TIMES IN FOUR REGULARSEASON MEETINGS THE KNICKS WILL START THE SAME NIGHT AGAINST THE TRANSHUDSON NEW JERSEY NETS AGAINST WHOM THEY'VE WON BUT ONE OF FIVE IN SCHEDULED HOSTILITIES IT'S LIKELY THOUGH THAT THE KNICKS WILL BE FAVORED TO ADVANCE WHILE THE BULLS' CHANCES WILL BE RATED NO BETTER THAN EVEN THAT'S PARTLY BECAUSE NEW YORK WILL GO INTO THE PLAYOFFS HEALTHIER THAN IT'S BEEN IN MONTHS CHARLES SMITH A BIG FORWARD WHO MISSED SIX WEEKS FOR KNEE SURGERY IS HALE AGAIN AS HE SHOWED WITH A 15POINT FIVEREBOUND EFFORT ON SUNDAY THAT TRAILED ONLY EWING'S 25 AND EIGHT ON HIS TEAM SO IS GUARD HUBERT DAVIS AFTER A LONG LAYOFF FOR A BROKEN BONE IN HIS RIGHT HAND CHICAGO ALSO HAS A COUPLE OF INJURYLIST RETURNEES IN CENTER BILL CARTWRIGHT AND GUARD JOHN PAXSON BUT BOTH ARE LONGTIME VETERANS WHO'RE ON THEIR LAST LEGS THERE'S ONE GUY WHO COULD REALLY SPARK THE BULLS HIS INITIALS ARE MJ HE'S THE ONE WHO QUIT BEING THE BEST PLAYER IN BASKETBALL TO BECOME THE WORST PLAYER IN BASEBALL HIS IMMEDIATE RETURN HOWEVER IS CONSIDERED UNLIKELY HE SAYS HE'LL COME BACK ONLY AS A PINCH HITTER QUIPPED JACKSON 9404260024 940426 ABREAST OF THE MARKET INDUSTRIALS CLIMB 5710 IN MOVE VIEWED AS POSSIBLE END TO SLUMP BY LARRY BAUMAN AND THOMAS GRANAHAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK A SURGE IN BONDS A SERIES OF UNEXPECTEDLY STRONG FIRSTQUARTER EARNINGS REPORTS AND WIDESPREAD SHORT COVERING FUELED A BROADBASED STOCK MARKET RALLY THAT ANALYSTS SAID MIGHT MARK THE END OF THE RECENT DOWNTREND THE GAINS BEING POSTED IN THE BOND MARKET HAVE ALLAYED SOME OF THE WORST FEARS ABOUT SURGING INTEREST RATES AND HAVE ALLOWED INVESTORS TO FOCUS ON THE PERFORMANCES OF INDIVIDUAL COMPANIES THE NEW PERSPECTIVE HAS PAID OFF AS SEVERAL MAJOR COMPANIES REPORTED UNEXPECTEDLY STRONG EARNINGS PERFORMANCES THE DOW JONES INDUSTRIAL AVERAGE ENDED THE DAY UP 5710 OR 16 AT 370578 YESTERDAY'S GAIN WAS THE SHARPEST SINCE APRIL 5 WHEN THE INDUSTRIALS MOVED UP 82 POINTS THE TREASURY'S LONG BOND WAS UP MORE THAN 3/4 POINT PUSHING THE BELLWETHER'S YIELD DOWN TO 715 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 252 OR 1 TO 25047 THE STANDARD & POOR'S 500 INDEX GAINED 508 OR 11 TO 45271 AND THE NASDAQ COMPOSITE INDEX WAS UP 824 OR 11 TO 73080 NEW YORK STOCK EXCHANGE VOLUME WAS 262241000 SHARES 1552 ISSUES ADVANCED AND 667 DECLINED MANY OF THE BIG MOVES ON THE NEW YORK STOCK EXCHANGE WERE DRIVEN BY STRONG FIRSTQUARTER EARNINGS BOEING GAINED 1 TO 44 3/4 ON THE HEELS OF EARNINGS OF 86 CENTS A SHARE THE COMPANY EARNED 96 CENTS A SHARE IN LAST YEAR'S FIRST QUARTER BUT ITS LATEST RESULTS EXCEEDED ANALYSTS' MEAN EXPECTATION OF 72 CENTS A SHARE THE COMPANY SAID IT PROJECTS 1994 SALES OF ABOUT 21 BILLION AND THAT IT CONTINUES TO MEET MAJOR SYSTEMS INTEGRATION TESTING AND PRODUCTION SCHEDULE MILESTONES ON ITS 777 AIRCRAFT PROGRAM KMART FELL 56 OR 1 TO 17 THE COMPANY SAID IT EXPECTS EARNINGS FROM ITS CONTINUING RETAIL OPERATIONS FOR THE FISCAL FIRST QUARTER TO BE WELL BELOW THE 12 CENTS A SHARE EARNED IN THE YEARAGO FIRST QUARTER AS RESTATED TO EXCLUDE THE DISCONTINUED PACE MEMBERSHIP WAREHOUSE AND DIVESTED PAYLESS DRUG STORE BUSINESSES DESPITE ITS FIRSTQUARTER OUTLOOK THOUGH KMART SAID IT EXPECTS HIGHER EARNINGS FOR ITS CURRENT FISCAL YEAR BECAUSE THE FIRST QUARTER IS A RELATIVELY SMALL CONTRIBUTOR TO FULLYEAR RESULTS GOODYEAR TIRE & RUBBER IMPROVED 1 TO 40 AFTER REPORTING FIRSTQUARTER NET INCOME OF 77 CENTS A SHARE A PENNY ABOVE ANALYSTS' MEAN ESTIMATE GOODYEAR SAID WORLDWIDE SALES IN ITS TIRE SEGMENT INCREASED 42 TO 25 BILLION CLARK EQUIPMENT SOARED 9 1/8 OR 16 TO 66 5/8 AFTER POSTING FIRSTQUARTER NET INCOME OF 154 A SHARE SHATTERING ANALYSTS' MEAN ESTIMATE OF 67 CENTS THE FIRM SAID NEW ORDERS INCREASED 34 IN THE LATEST QUARTER TO 2956 MILLION SHARES OF GLENDALE FEDERAL BANK JUMPED 3/4 OR 11 TO 7 3/8 THE COMPANY SAID IT SIGNED A DEFINITIVE AGREEMENT TO SELL ITS FLORIDA BANK FRANCHISE TO BARNETT BANKS FOR 2435 MILLION THE BANK SAID IT WOULD WRITE OFF ABOUT 133 MILLION IN GOODWILL IN THE QUARTER ENDED MARCH 31 A MOVE THAT WILL REDUCE QUARTERLY EXPENSES FOR GOODWILL AMORTIZATION BY ABOUT 32 MILLION PAINEWEBBER ALSO UPGRADED ITS INVESTMENT RATING ON GLENDALE TO ATTRACTIVE FROM NEUTRAL GLAXO HOLDINGS SHARES SLIPPED 1/2 TO 16 5/8 ON CONCERN THAT SWISS DRUG COMPANY CIBAGEIGY WILL LAUNCH A GENERIC FORM OF GLAXO'S ZANTAC ULCER DRUG SYNTEX JUMPED 1 1/4 TO 14 IN ACTIVE TRADING AFTER CNBC'S DAN DORFMAN REPORTED HEARING RUMORS THAT THE COMPANY WILL BE TAKEN OVER BY AN OVERSEAS BUYER GENERAL MOTORS IMPROVED 1 5/8 TO 57 1/4 THE AUTO MAKER SAID ITS SATURN UNIT RAISED THE DAILY PRODUCTION OF ITS CARS TO 1133 VEHICLES FROM 800 GM WAS ALSO MENTIONED IN THIS WEEK'S BARRON'S MAGAZINE AS A FAVORITE PICK OF LEGENDARY INVESTOR PETER LYNCH SEVERAL OTHER STOCKS BENEFITED FROM POSITIVE COMMENTS MADE BY MR LYNCH IN BARRON'S INTEL ROSE 2 5/8 TO 62 7/8 LSI LOGIC 2 1/8 TO 22 1/4 TJX COS 3/4 TO 24 1/8 AND STOP & SHOP 1 1/8 TO 26 1/8 ANALYSTS SAID INVESTORS HAVE BEEN CHEERED BY A STRING OF UNEXPECTEDLY STRONG FIRSTQUARTER EARNINGS FROM SEVERAL MAJOR COMPANIES FOR EXAMPLE FOLLOWING LAST WEEK'S STRONG REPORT BY INTERNATIONAL BUSINESS MACHINES DUPONT YESTERDAY REPORTED EARNINGS OF 94 CENTS A SHARE WELL ABOVE THE IBES AVERAGE ESTIMATE OF 74 CENTS WE NEEDED A FEW HOME RUNS THE SCRATCH SINGLES WEREN'T DOING IT SAID ALAN ACKERMAN A MARKET STRATEGIST AT REICH & CO HE SAID THAT BEFORE THE FLOW OF POSITIVE EARNINGS REPORTS THERE HAD BEEN A STRUGGLE OF FEAR OF HIGHER INTEREST RATES VERSUS EARNINGS BUT WITH TWO HEAVY HITTERS HITTING IT OUT OF THE BALL PARK INVESTORS ARE MOVING THEIR FOCUS TO THE EARNINGS SIDE OF THE EQUATION MOREOVER HE SAID THE STRONG FIRSTQUARTER RESULTS HAVE PROMPTED WIDESPREAD COVERING BY SHORT SELLERS WE MAY NOT HAVE SEEN THE END OF THE TEST OF THE LOW END OF THE TRADING RANGE BUT FOR NOW THE CONDITIONS SEEM GOOD FOR A CONTINUATION OF THE CURRENT RALLY MR ACKERMAN SAID JOHN W CHURCH CHIEF INVESTMENT OFFICER AT GLENMEDE TRUST CO SAID THAT AS LONG AS THE BOND MARKET RECOVERY CONTINUES STOCKS SHOULD PERFORM WELL THE RISE IN INTEREST RATES HE SAID MIGHT HAVE BEEN ENOUGH TO CONTROL INFLATION AND MODERATE GROWTH WITHOUT DEPRESSING THE ECONOMY AND CORPORATE PROFITS THE RECENT DROP IN SHARE PRICES MEANWHILE HAS CREATED BARGAINS THERE ARE A LOT OF STOCKS THAT LOOK CHEAP I FEEL GOOD BUYING STOCKS WHILE IN THE BEGINNING OF THE YEAR I DIDN'T FEEL AS GOOD ABOUT BUYING MR CHURCH SAID THE MARKET HAD BEEN SUFFERING FROM A PROLONGED SPATE OF BAD NEWS SAID EUGENE PERONI DIRECTOR OF TECHNICAL RESEARCH AT JANNEY MONTGOMERY SCOTT BUT NOW HE SAID THE WORST FEARS OF HIGHER INTEREST RATES ARE DISSIPATING HE ADDED THAT WITH THE INDUSTRIAL AVERAGE MANAGING TO CLOSE ABOVE THE 3700 MARK THE STOCK MARKET IS IN A PRETTY GOOD POSITION TO GO INTO A STABILIZING TREND MR PERONI SAID A KEY TO EXTENDING THE GAINS OF THE PAST FEW SESSIONS IS AT LEAST FIVE CONSECUTIVE TRADING DAYS IN WHICH THE ADVANCEDECLINE TREND IMPROVES AS IT DID HE ALSO SAID HE WOULD LIKE TO SEE CYCLICALS RISE 10 FROM THEIR RECENT LOWS HE SAID THE DOW'S CLOSE ABOVE 3700 BREAKS THE SPINE OF THE DOWNTREND WE'VE SEEN SINCE MARCH FOLLOWING THE STRENGTH OF THE MARKET THURSDAY THIS COULD BE THE TURNING IT HINTS THE MARKET IS IN THE PROCESS OF MAKING SOME SORT OF TURN 9404260022 940426 AIR METHODS COPTER CRASHES KILLING PILOTS NURSES ON MEDICAL CALL DENVER AIR METHODS CORP SAID TWO OF ITS PILOTS AND TWO FLIGHT NURSES FROM A NORTH CAROLINA HOSPITAL DIED FRIDAY WHEN ONE OF ITS MEDICALLY EQUIPPED BELL 412 HELICOPTERS CRASHED IN A MOUNTAINOUS AREA NEAR THE VIRGINIAWEST VIRGINIA BORDER THE COMPANY SAID IT DIDN'T HAVE ANY INFORMATION ABOUT THE CAUSE OF THE CRASH NATIONAL TRANSPORTATION AND SAFETY BOARD INVESTIGATORS WHO HAD VISITED THE SITE COULDN'T BE REACHED IMMEDIATELY FOR COMMENT THE HELICOPTER WAS ON ITS WAY TO PICK UP A PATIENT IN BLUEFIELD WVA TO TRANSPORT TO THE NORTH CAROLINA BAPTIST HOSPITAL IN WINSTONSALEM NC THE COMPANY SAID 9404260020 940426 TECHNOLOGY AND HEALTH POPCORN AT MOVIES GETS THUMBS DOWN FOR BEING FULL OF FAT GODZILLA' OF SNACKS MAYBE BUT THEATER OWNERS SAY IT'S WHAT PEOPLE WANT BY MARY AGNES CAREY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MOVIETHEATER POPCORN A STAPLE OF CINEMA VIEWERS IS AMONG THE MOST FATFILLED CULPRITS IN THE AMERICAN DIET ACCORDING TO A STUDY FROM THE CENTER FOR SCIENCE IN THE PUBLIC INTEREST APPROXIMATELY 70 OF MOVIETHEATER POPCORN IS POPPED IN COCONUT OIL WHICH RAISES BLOODCHOLESTEROL LEVELS MORE THAN ANY OTHER FAT OR OIL TURNING WHAT COULD BE A HEALTHY SNACK INTO AN UNHEALTHY ONE THE STUDY FOUND THEATER POPCORN OUGHT TO BE THE SNOW WHITE OF SNACKS INSTEAD IT'S GODZILLA' SAID MICHAEL JACOBSON EXECUTIVE DIRECTOR FOR THE CONSUMERADVOCACY GROUP THE CENTER SENT A LETTER YESTERDAY TO THE NATIONAL ASSOCIATION OF THEATRE OWNERS ASKING THEM TO SELL AIRPOPPED POPCORN INSTEAD OR SWITCH FROM COCONUT OIL TO CORN OIL FOR POPPING THE GROUP ALSO WANTS THEATER OWNERS TO PUT NUTRITIONAL LABELING ON ALL PACKAGES OF POPCORN LISTING CALORIC CONTENT AND FAT GRAMS BILL KARTOZIAN PRESIDENT OF THE THEATEROWNERS ASSOCIATION SAID WHILE HIS GROUP WILL REVIEW THE STUDY'S FINDINGS LONGTERM HARMFUL EFFECTS ON DIET ARE SLIM BECAUSE MOST AMERICANS VISIT THE MOVIES ONLY FIVE OR SIX TIMES A YEAR AND WHEN THEY DO RELAXING WITH A SODA CANDY OR POPCORN IS PART OF THE RITUAL HE SAID HE ADDED THAT THEATER OWNERS OFTEN USE COCONUT OIL IN THE POPPING PROCESS BECAUSE THEIR CUSTOMERS LIKE THE SMELL AND TASTE OF COCONUT OILPOPPED POPCORN BETTER ACCORDING TO THE CENTER'S STUDY EVEN WITHOUT ADDITIONAL BUTTER OR BUTTER FLAVORING A SMALL SERVING OF MOVIE POPCORN ABOUT SEVEN CUPS CONTAINS 19 GRAMS OF SATURATED FAT NEARLY A FULL DAY'S INTAKE A MEDIUM SERVING OF BUTTERED POPCORN WHICH CONTAINS ABOUT 16 CUPS HAS 56 GRAMS OF SATURATED FAT MORE THAN THE COMBINATION OF A BACONANDEGGS BREAKFAST A BIG MAC AND A LARGE ORDER OF FRIES FOR LUNCH AND A STEAK DINNER AND THE LARGE TUB OF BUTTERED POPCORN ABOUT 20 CUPS BOASTS 73 SATURATED GRAMS OF FAT THE SAME AMOUNT IN 15 HOT DOGS THE CENTER REPORTED EVEN IF SEVERAL PEOPLE SHARE A LARGE BUTTERED POPCORN THEY'RE ALL STILL GETTING LARGE DOSES OF ARTERYCLOGGING FAT ACCORDING TO THE STUDY 9404260019 940426 LETTERS TO THE EDITOR TOO CLOSE FOR COMFORT IT IS WITH A SENSE OF FRUSTRATION THAT I READ YOUR MARCH 28 ARTICLE ON DIVERSIFIED CREDIT CORP AND IN PARTICULAR THE ANTICS OF DEBT COLLECTOR STEVEN HOFFENBERG MY CORPORATION HAS BEEN IN BUSINESS 10 YEARS AND HAS NEVER HAD A HINT OF A PROBLEM FROM THE PERSPECTIVE OF HANDLING CUSTOMER FUNDS OR ANY TYPE OF LITIGATION UNFORTUNATELY WE TOO FELL VICTIM TO MR HOFFENBERG AND DIVERSIFIED CREDIT CORP MAINLY BECAUSE OF A SIMILARITY IN NAMES WE WERE SHOCKED AND EXTREMELY DISTURBED WHEN MR HOFFENBERG STARTED TELEMARKETING OUR CUSTOMERS AS WELL AS MANY OTHER PROSPECTIVE CUSTOMERS USING THE NAME DIVERSIFIED CREDIT CORP 9404260017 940426 INTERNATIONAL CHINA TO ERASE POLICY FAVORING CITY OVER FARM BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING CHINA IS SET TO TAKE A SIGNIFICANT STEP TOWARD ABOLISHING ITS TWOTRACK HOUSEHOLD REGISTRATION SYSTEM ONE OF THE FINAL MAINSTAYS OF THE COUNTRY'S CENTRALPLANNING STRUCTURE AS EARLY AS JUNE SMALL CITIES AND TOWNS ACROSS THE COUNTRY WILL START TO PHASE OUT THE SYSTEM WHICH FAVORS CITY RESIDENTS OVER FARMERS AND INHIBITS FREE MOVEMENT BETWEEN RURAL AND URBAN AREAS GOVERNMENT OFFICIALS AND ACADEMICS SAY TO HAVE A MARKET ECONOMY YOU CAN'T HAVE SUCH A CLOSED MANAGEMENT SYSTEM OF THE POPULATION SAYS HAN JUN OF THE CHINESE ACADEMY OF SOCIAL SCIENCE'S INSTITUTE OF RURAL DEVELOPMENT THE ULTIMATE TARGET IS TO GET RID OF THE WHOLE SYSTEM OF DIVISION IN 1958 CHINA INTRODUCED THE TWOTIER SYSTEM WHICH DISTINGUISHES BETWEEN RURAL AND URBAN DOMICILES TO STEM THE FLOW OF PEASANTS INTO CITIES AND TO SUPPORT DEVELOPMENT OF INDUSTRY UNDER THE SYSTEM 90 OF CHINA'S 115 BILLION PEOPLE ARE REGISTERED AS FARMERS THUS FEW CHINESE ENJOY THE PRIVILEGES THAT COME WITH AN URBAN HOUSEHOLD REGISTRATION GUARANTEED JOBS MEDICAL CARE INEXPENSIVE EDUCATION AS WELL AS SUBSIDIZED HOUSING ELECTRICITY AND WATER NOW AFTER MORE THAN A DECADE OF ECONOMIC REFORMS THAT ARE RAPIDLY MOVING CHINA TOWARD A MARKET ECONOMY MANY PEASANTS WORK IN RURAL ENTERPRISES AND GROW CROPS ON THE SIDE LURED BY THE PROSPECT OF PROSPERITY MILLIONS OF OTHER FARMERS HAVE FLOCKED TO SEEK JOBS IN BOOMING COASTAL CITIES THE SYSTEM HAS HELPED CAUSE GROWTH IN AGRICULTURAL REGIONS TO LAG BEHIND THAT OF CITIES SPARKING SCATTERED CASES OF PEASANT UNREST ALTHOUGH FARMERS STILL REPRESENT THE VAST MAJORITY OF CHINA'S POPULATION THEIR REAL INCOMES GREW ONLY 5 TO 110 IN THE FIRST NINE MONTHS OF LAST YEAR COMPARED WITH GROWTH OF 12 TO 205 FOR URBAN RESIDENTS THE SYSTEM HAS VERY COMPLETELY BOUND THE ARMS AND LEGS OF CHINA'S FARMERS SAYS MR HAN AS A FIRST STEP TOWARD ABOLISHING THE REGISTRATION SYSTEMS SMALL CITIES AND TOWNS WILL INTRODUCE A UNIFIED SYSTEM AND RELAX RULES ON SETTLEMENT BY FARMERS SAYS WANG YADONG A SPOKESMAN FOR THE MINISTRY OF PUBLIC SECURITY THE MINISTRY IS LIKELY TO INTRODUCE AN IMPLEMENTATION PLAN BY YEAR END AFTER IT IS APPROVED BY THE STATE COUNCIL HE ADDS MR HAN SAYS THE REFORM COULD TAKE EFFECT AS EARLY AS JUNE 1 THE GOVERNMENT ISN'T EXPECTING A MASS INFLUX INTO THE CITIES AFTER THE PLAN IS IMPLEMENTED IN FACT MR HAN ESTIMATES THAT AT MOST SEVERAL MILLION PEASANTS WILL APPLY FOR PERMANENT RESIDENCE STATUS IN THE CITIES HOWEVER THE REFORM WILL MAKE LIFE EASIER FOR THE 20 MILLION TO 30 MILLION FARMERS WHO ARE ALREADY LIVING IN CITIES BY GIVING THEM STATUS MORE CONSISTENT WITH THAT OF OTHER CITY DWELLERS ACCORDING TO THE REFORM DRAFT MR HAN SAYS PEASANTSTURNEDURBANITES WOULDN'T RECEIVE MOST GOVERNMENTSPONSORED PRIVILEGES SUCH AS GUARANTEED JOBS AND SUBSIDIZED HOUSING WHICH WOULD EVENTUALLY BE PHASED OUT FOR ALL RESIDENTS BUT THEIR CHILDREN WOULD BE ELIGIBLE FOR INEXPENSIVE SCHOOLING CHILDREN COULD ALSO INHERIT THE RESIDENCE STATUS OF EITHER PARENT INSTEAD OF JUST THE MOTHER'S WHICH IS THE CASE NOW THE GOVERNMENT WOULD CURB THE VOLUME OF MIGRATION BY RESTRICTING PERMANENT SETTLERS TO THOSE WITH JOBS HOUSING AND SUFFICIENT MONEY TO SUSTAIN THEMSELVES IN THE CITY HOWEVER MANY MIGRANT LABORERS OPT TO TOIL AT A CITY JOB FOR A ONLY FEW YEARS AND THEN RETURN HOME WITH ENOUGH MONEY TO BUILD A HOUSE OR GET MARRIED FEW CAN AFFORD THE HIGHER COSTS OF RAISING A FAMILY IN THE CITY IN BEIJING FOR EXAMPLE ONLY 7 OF MIGRANT WORKERS STAY FOR MORE THAN THREE YEARS 9404260016 940426 LETTERS TO THE EDITOR FALSE SENATORS EDWIN WILSON HAD A BONER IN HIS MARCH 9 REVIEW OF DAMN YANKEES HE STATED THAT THE WASHINGTON SENATORS WERE TRANSFORMED IN 1972 TO THE TEXAS RANGERS THE WASHINGTON SENATORS REFERRED TO IN DAMN YANKEES MOVED TO MINNESOTA IN 1961 BECOMING THE MINNESOTA TWINS THE POST1960 SENATORS WERE AN EXPANSION TEAM A PALE IMITATION OF THE STORIED FRANCHISE OF WALTER JOHNSON ALTHOUGH THESE FALSE SENATORS INDEED UPHELD THEIR PREDECESSOR'S TRADITION OF MEDIOCRITY THEY NEVER REPLACED THE TRUE SENATORS IN THE HEARTS OF DEECEETONIANS 9404260015 940426 BUSINESS BRIEF QUANTUM CORP DISK DRIVE MAKER'S NET ROSE 46 IN FISCAL FOURTH PERIOD QUANTUM CORP MILPITAS CALIF SAID ITS FISCAL FOURTHQUARTER EARNINGS ROSE 46 ON A STRONG REBOUND FOR THE COMPANY'S COMPUTER DISK DRIVES QUANTUM SAID FOURTHQUARTER EARNINGS WERE 385 MILLION OR 83 CENTS A SHARE COMPARED WITH 263 MILLION OR 58 CENTS A SHARE IN THE YEARAGO QUARTER THE COMPANY SAID FOURTHQUARTER SALES ROSE 25 TO 635 MILLION OVER THE 507 MILLION IN SALES REPORTED A YEAR AGO QUANTUM SAID ITS FISCAL 1994 NET INCOME WAS 27 MILLION OR SIX CENTS A SHARE INCLUDING RESTRUCTURING CHARGES OF 23 MILLION OR 41 CENTS A SHARE IN FISCAL 1993 QUANTUM EARNED 938 MILLION OR 205 A SHARE SALES FOR FISCAL 1994 ROSE 26 TO 21 BILLION FROM 17 BILLION IN FISCAL 1993 9404260014 940426 INTERNATIONAL CHINA'S JAILING OF HONG KONG JOURNALIST CRYSTALLIZES PLIGHT OF ASIAN FREE PRESS BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG JERRY TO A JOURNALIST HAS DONE THE NEAREST THING TO WRITING HIS OWN OBITUARY HE HAS JUST COVERED A COLLEAGUE'S SENTENCING TO A DOZEN YEARS IN PRISON FOR REPORTING ON CHINA HIS COWORKER XI YANG WAS CONVICTED LAST MONTH OF PILFERING STATE SECRETS FOR HONG KONG'S MING PAO DAILY MR XI A 38YEAROLD CHINABORN REPORTER APPEALED THE STERN SENTENCE LAST WEEK THE BEIJING HIGH PEOPLE'S COURT DECLARED THE VERDICT FINAL MR TO WHO WAS IN BEIJING WHEN HIS FRIEND WAS REMOVED UNDER ARMED GUARD TO THE CHINESE GULAG IS ALARMED THE MESSAGE IS CLEAR SAYS 31YEAROLD MR TO OBEY ALL THEIR RULES AND YOU WILL BE FINE BUT THEIR RULES SAY DON'T DO ANYTHING WITHOUT APPROVAL I FEEL QUITE LOW HE WOULDN'T FEEL MUCH BETTER IN MANY OTHER ASIAN COUNTRIES THESE DAYS A STRING OF RECENT EVENTS HAS ESTABLISHED FIRM LIMITS ON SOME COUNTRIES' TOLERANCE OF WHAT MANY WESTERN OBSERVERS THINK OF AS A KEY SOCIETAL IMPROVEMENT AN UNFETTERED PRESS IN ASIA'S DEVELOPING ECONOMIES A PERCEIVED NEED FOR SOCIAL STABILITY AND A PENCHANT FOR STRONG GOVERNMENT SOMETIMES OVERWHELMS THE DEVELOPMENT OF AN OPEN PRESS EVEN GLOBAL MEDIA GIANTS ARE ACCUSED OF BOWING TO ASIAN DISTASTE FOR AGGRESSIVE JOURNALISM STAR TV A PANASIA SATELLITEBROADCAST NETWORK OWNED BY RUPERT MURDOCH'S NEWS CORP JUST DUMPED BBC WORLD SERVICE TELEVISION NEWS AS ONE OF ITS FIVE NORTH ASIAN CHANNELS IN FAVOR OF A SUBSCRIPTION MOVIE SERVICE IN CHINESE STAR SAYS THE DECISION WAS COMMERCIAL BUT CRITICS NOTE THAT THE BBC'S STRAIGHT TAKE OF WORLD EVENTS WAS UNWELCOME IN CHINA STAR'S BIGGEST MARKET A DOCUMENTARY PREPARED LAST YEAR BY THE BBC ON THE LIFE OF MAO TSETUNG HAS BEEN THE TARGET OF A BARRAGE OF CHINESE CRITICISM BBC REPORTERS IN CHINA HAVE BEEN RESTRICTED FROM TRAVELING WIDELY IN THE COUNTRY MANY HOTELS IN THE MAINLAND OFTEN SHOWED STAR'S MUSIC SPORTS AND ENTERTAINMENT CHANNELS BUT NOT THE BBC IF THE MESSAGE TO THE MEDIA WASN'T CLEAR ENOUGH CHINA'S STATECONTROLLED PRESS ON SATURDAY DECREED THAT FOREIGN COMPANIES WOULDN'T BE ALLOWED TO SET UP OR OPERATE CABLETELEVISION STATIONS CABLE TV A TOP OFFICIAL WAS QUOTED AS SAYING SHOULD SERVE AS THE PARTY'S AND GOVERNMENT'S PROPAGANDA TOOL WHILE ENTERTAINING VIEWERS THERE'S DEFINITELY A DIFFERENT DEFINITION OF THE ROLE OF THE MEDIA IN MANY OF THESE COUNTRIES SAYS JOHN SCHIDLOVSKY DIRECTOR OF THE USBASED FREEDOM FORUM'S HONG KONG OFFICE WHEN THE FREEDOM FORUM LAST MONTH TRIED TO HOST AN ECONOMIC REPORTING SEMINAR FOR JOURNALISTS IN VIETNAM MUCH AS IT DOES IN MANY COUNTRIES OF THE FORMER SOVIET BLOC IN EUROPE HANOI BALKED AT THE LAST MINUTE AND ORDERED THE CONFERENCE CALLED OFF THE ONLY EXPLANATION WAS TECHNICAL REASONS' SAYS MR SCHIDLOVSKY ASIAN LEADERS SAY THEY AREN'T OPPOSED TO HONEST JOURNALISM JUST THE IRRESPONSIBLE SORT THAT THEY SAY SEEMS TO HAVE FLOURISHED IN THE WEST THUS WHEN BRITISH PAPERS SIDESWIPED MALAYSIA'S GOVERNMENT WITH VAGUE ALLEGATIONS OF CORRUPTION PRIME MINISTER MAHATHIR MOHAMAD DEMANDED THAT LONDON APOLOGIZE AND PUT ITS PRESS ON A TIGHTER LEASH TOLD THAT THE BRITISH PRESS WAS INDEPENDENT DR MAHATHIR BANNED MALAYSIAN GOVERNMENT CONTRACTS TO BRITISH FIRMS NOBODY ELECTS THE PRESS DR MAHATHIR LATER TOLD THE FAR EASTERN ECONOMIC REVIEW WHICH ITSELF SOMETIMES SUFFERS FROM DISTRIBUTION DELAYS OR RESTRICTIONS IN ASIA THE GOVERNMENT OF SINGAPORE HAS LONG INSISTED ON THE RIGHT OF FULL REPLY TO ANY PRESS CRITICISM AND WON'T ABIDE WHAT ONE OFFICIAL CALLS THE CORROSIVE INFLUENCE OF AN IRRESPONSIBLE PRESS FOREIGN PUBLICATIONS THAT CIRCULATE IN SINGAPORE INCLUDING THE ASIAN WALL STREET JOURNAL THE REVIEW TIME MAGAZINE ASIAWEEK AND THE ECONOMIST HAVE FACED CIRCULATION RESTRICTIONS AND AT TIMES LOST THEIR RIGHTS TO BASE CORRESPONDENTS IN THE CITYSTATE BECAUSE OF DIFFERENCES WITH SINGAPORE'S GOVERNMENT BOTH THE ASIAN WALL STREET JOURNAL AND THE FAR EASTERN ECONOMIC REVIEW ARE OWNED BY DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL RECENT US COVERAGE OF THE CANING SENTENCE OF AN AMERICAN TEENAGER IN SINGAPORE HAS PROMPTED POINTBYPOINT REBUTTALS FROM THE CITYSTATE'S HOME AFFAIRS MINISTRY THE NEW YORK TIMES AND THE INTERNATIONAL HERALD TRIBUNE WHICH RAN A TIMES ARTICLE SUGGESTING THE TEENAGER'S CONFESSION OF VANDALISM WAS COERCED WERE SINGLED OUT ALTHOUGH OTHER JOURNALISTS ALSO HAVE RECEIVED COMPLAINTS ABOUT THEIR STORIES SINGAPORE'S GOVERNMENT KEEPS A CLOSE EYE ON ITS OWN MEDIA TOO LAST MONTH A COURT FINED TWO JOURNALISTS FOR PUBLISHING AN ARTICLE BASED ON A LEAK OF A GOVERNMENT FLASH ESTIMATE OF 1992 SECONDQUARTER ECONOMIC GROWTH THE OFFICIAL WHO LEAKED THE INDICATOR AND TWO BROKERAGEFIRM ECONOMISTS WHO PASSED IT ALONG TO THE JOURNALISTS ALSO WERE TRIED AND FINED IN SOME WAYS SINGAPORE'S PROSECUTION WAS SIMILAR TO CHINA'S CASE AGAINST XI YANG THE MING PAO REPORTER SENTENCED TO 12 YEARS IN PRISON MR XI ANGERED BEIJING BY BREAKING NEWS THAT IT PLANNED TO RAISE INTEREST RATES LAST SUMMER AND BY REPORTING ON ITS GOLD SALES THE TREATMENT OF MR XI WHO WAS GIVEN EXTREMELY LIMITED ACCESS TO A LAWYER AND TRIED VIRTUALLY IN SECRET HAS PROVOKED OUTRAGE IN HONG KONG WHICH REVERTS TO CHINESE RULE IN THREE YEARS NO EVENT HAS TOUCHED A MORE SENSITIVE NERVE IN HONG KONG SINCE BEIJING'S BRUTAL SUPPRESSION OF DEMOCRACY PROTESTS IN 1989 I HOPE FROM THE BOTTOM OF MY HEART THAT CHINESE OFFICIALS WILL MOVE RAPIDLY TO REMOVE PEOPLE'S ANXIETIES BECAUSE THOSE ANXIETIES ARE VERY VERY REAL AND VERY VERY PROFOUND SAID HONG KONG GOV CHRISTOPHER PATTEN LOCAL RADIO AND TELEVISION PROGRAMS HAVE BEEN DOMINATED BY DISCUSSION OF THE CASE AND EVEN POLITICIANS ALIGNED WITH CHINA IN THE COLONY HAVE DEMANDED FULLER EXPLANATIONS OF HIS TREATMENT THE US CONSULATE GENERAL IN HONG KONG TOOK THE UNUSUAL STEP OF ISSUING A STATEMENT LAST TUESDAY SAYING MR XI APPEARED TO BE MERELY ACTING IN A MANNER COMMON TO JOURNALISTS AROUND THE WORLD AND SAYING THE CASE RAISES SERIOUS QUESTIONS ABOUT CHINA'S JUDICIAL SYSTEM AT LEAST 22 OTHER JOURNALISTS ARE NOW IN CHINESE JAILS ACCORDING TO THE NEW YORKBASED COMMITTEE TO PROTECT JOURNALISTS CHINA'S ONLY RESPONSE TO CRITICISM OF MR XI'S SENTENCE SO FAR HAS BEEN TO OBSERVE THAT HE COULD HAVE BEEN GIVEN THE DEATH SENTENCE 9404260013 940426 BUSINESS BRIEF SAFECO CORP INSURER'S EARNINGS HINDERED BY NORTHRIDGE QUAKE LOSSES SAFECO CORP SAID LOSSES FROM THE JAN 17 SOUTHERN CALIFORNIA EARTHQUAKE WERE THE COSTLIEST IN THE INSURANCE COMPANY'S HISTORY CUTTING FIRSTQUARTER EARNINGS IN HALF SAFECO OF SEATTLE SAID ITS FIRSTQUARTER EARNINGS FELL 26 TO 56 MILLION OR 89 CENTS A SHARE WITH REVENUE UP 72 THE QUAKE CUT 88 CENTS A SHARE FROM ITS EARNINGS THE COMPANY SAID IN THE YEARAGO QUARTER SAFECO REPORTED EARNINGS OF 754 MILLION OR 120 A SHARE ON REVENUE OF 843 MILLION THE COMPANY SAID ITS LOSSES FROM THE NORTHRIDGE EARTHQUAKE ARE EXPECTED TO TOTAL 625 MILLION AFTER REINSURANCE WITH TOTAL CLAIMS AMOUNTING TO 175 MILLION SAFECO SAID IT ALSO HAD TO PAY ITS REINSURERS A 206 MILLION PREMIUM TO REINSTATE ITS EARTHQUAKE COVERAGE FOR THE REST OF 1994 9404260012 940426 WHO'S NEWS FOSTER WHEELER TAPS SWIFT AS CHIEF PROFIT ROSE 21 IN 1ST PERIOD CLINTON NJ FOSTER WHEELER CORP NAMED ITS PRESIDENT AND CHIEF OPERATING OFFICER RICHARD J SWIFT CHAIRMAN AND CHIEF EXECUTIVE SUCCEEDING LOUIS E AZZATO AS EXPECTED THE COMPANY ALSO SAID IT REPORTED FIRSTQUARTER NET INCOME ROSE 21 ON STRONG PERFORMANCE IN ITS ENGINEERING AND CONSTRUCTION AND ENERGY EQUIPMENT GROUPS FOSTER WHEELER ALSO RAISED ITS QUARTERLY DIVIDEND 12 TO 185 CENTS A SHARE FROM 165 CENTS MR SWIFT 49 YEARS OLD HAS BEEN WITH THE COMPANY WHOSE BUSINESSES INCLUDE DESIGN ENGINEERING CONSTRUCTION AND MANUFACTURING FOR MORE THAN 20 YEARS AND HAS HELD A NUMBER OF POSITIONS INCLUDING VICE PRESIDENT OF FOSTER WHEELER INTERNATIONAL CORP IN 1992 HE WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER AND IN 1993 A DIRECTOR MR AZZATO 64 IS RETIRING HE HAS BEEN CHIEF EXECUTIVE SINCE 1981 AND CHAIRMAN SINCE 1988 THE CLINTON NJ COMPANY SAID FIRSTQUARTER EARNINGS ROSE TO 154 MILLION OR 43 CENTS A SHARE FROM 127 MILLION OR 36 CENTS A SHARE REVENUE DECLINED 19 TO 478 MILLION FROM 5964 MILLION BECAUSE OF LOWER FLOWTHROUGH REVENUE FROM CUSTOMERS BUT ORDER BACKLOG ROSE 86 TO 421 BILLION FROM 388 BILLION MR AZZATO SAID AT THE COMPANY'S ANNUAL MEETING THAT WAS HELD IN PARSIPPANY NJ THAT GROWTH IN FIRSTQUARTER EARNINGS CONTINUES A PATTERN SET OVER THE PAST FIVE YEARS IN WHICH EARNINGS GREW AT A COMPOUND RATE OF 15 A YEAR HE SAID HE EXPECTS THE REST OF 1994 TO REFLECT A SIMILAR GROWTH PATTERN IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY FOSTER WHEELER SHARES FELL 125 CENTS TO 3925 9404260011 940426 BARNETT BANKS TO BUY BRANCHES IN FLORIDA OF GLENDALE FEDERAL JACKSONVILLE FLA BARNETT BANKS INC SAID IT AGREED TO PURCHASE THE FLORIDA DEPOSITS AND OFFICES OF GLENDALE FEDERAL BANK FOR 2435 MILLION THE TRANSACTION WHICH INCLUDES 36 BILLION IN DEPOSITS AND 60 OFFICES WOULD BOOST BARNETT'S MARKET SHARE IN SEVERAL FLORIDA COUNTIES FOR GLENDALE FEDERAL BASED IN GLENDALE CALIF THE TRANSACTION WOULD PROVIDE A CONVENIENT EXIT FROM FLORIDA ENABLING THE COMPANY TO CONCENTRATE ITS EFFORTS IN CALIFORNIA ITS PRIMARY MARKET AND WASHINGTON UNDER TERMS OF THE TRANSACTION GLENDALE IS RETAINING ITS 13 BILLION BOOK OF FLORIDABASED MORTGAGE LOANS THE GLENDALE BRANCHES WILL MOVE BARNETT INTO MARKETLEADING POSITIONS IN BROWARD AND HILLSBOROUGH COUNTIES BARNETT WILL OCCUPY SECOND PLACE IN DADE COUNTY AND WILL REMAIN IN THE TOP SPOT IN PALM BEACH AND PINELLAS COUNTIES BARNETT PAID A RELATIVELY PRICEY 67 PREMIUM FOR THE GLENDALE DEPOSITS BUT CHARLES E RICE CHAIRMAN AND CHIEF EXECUTIVE STRESSED THAT BARNETT COULD MARKET A MUCH BROADER ARRAY OF PRODUCTS INCLUDING TRUST INVESTMENT BROKERAGE AND OTHER SERVICES THAN GLENDALE COULD OFFER THE DEAL PROVIDES BARNETT WITH A STRONG OPPORTUNITY TO BOOST FEE INCOME HE SAID BARNETT ALSO EXPECTS TO CONSOLIDATE SOME OVERLAPPING OPERATIONS WITH THE GLENDALE ACQUISITION BARNETT IS FOLLOWING THROUGH ON THE STRATEGIC PLAN IT ARTICULATED DURING THIS MONTH'S ANNUAL MEETING MR RICE TOLD SHAREHOLDERS APRIL 20 THAT IN ADDITION TO ADDING NEW PRODUCTS TO ITS FINANCIALSERVICES MENU BARNETT WOULD CONTINUE TO CONSIDER FILLIN ACQUISITIONS OF OTHER FINANCIAL INSTITUTIONS IN FLORIDA AND CONTIGUOUS AREAS 9404260010 940426 TECHNOLOGY GROUP TO START MAKING EQUIVALENT OF RU486 ABORTION PILL FOR TESTS NEW YORK AP AN ABORTIONRIGHTS GROUP IS READY TO START PRODUCTION OF A GENERIC EQUIVALENT OF THE RU486 ABORTION PILL THE ABORTION RIGHTS MOBILIZATION OR ARM SIGNED AN AGREEMENT WITH AN OVERSEAS MANUFACTURER LAST WEEK LAWRENCE LADER THE GROUP'S PRESIDENT SAID HE WOULDN'T IDENTIFY THE COMPANY WE HOPE TO HAVE DOSAGES FOR TESTING READY IN FIVE TO SIX MONTHS MR LADER SAID THE ANIMAL TESTS SHOULD BE TWO MONTHS LATER THEN THE FDA IS SUPPOSED TO MAKE A DECISION WITHIN A MONTH AND WITH LUCK WE'LL BEGIN HUMAN TESTING BY THE END OF THE YEAR THE GROUP ANNOUNCED A YEAR AGO THAT ITS RESEARCHERS HAD DUPLICATED THE DRUG RU486 WHICH IS MADE BY ROUSSEL UCLAF OF FRANCE THE FRENCH COMPANY HAS DECLINED TO SELL THE DRUG IN THE US BECAUSE OF THE POLITICAL CLIMATE BUT HAS BEEN NEGOTIATING FOR MONTHS WITH THE POPULATION COUNCIL AN INTERNATIONAL RESEARCH ORGANIZATION TO MAKE THE DRUG AVAILABLE FOR TESTING IN THE US ABORTION OPPONENTS HAVE FOUGHT TO KEEP RU486 OUT OF THE US OBJECTING TO IT AS STRONGLY AS THEY DO AGAINST SURGICAL ABORTION RU486 REPLACES SURGICAL ABORTIONS PERFORMED EARLY IN A WOMAN'S PREGNANCY IT CAUSES THE UTERUS TO SHED ITS LINING WITH THE FERTILIZED EMBRYO AND HAS BEEN USED BY TENS OF THOUSANDS OF WOMEN IN FRANCE BRITAIN AND SWEDEN MR LADER SAID THAT HIS ORGANIZATION HOPES TO TEST THE DRUG AMONG 2000 WOMEN OVER TWO YEARS BECAUSE ARM IS A TAXEXEMPT NONPROFIT ORGANIZATION USING THE DRUG FOR RESEARCH PURPOSES AND ISN'T SELLING THE DRUG IT WON'T BE VIOLATING ROUSSEL UCLAF'S PATENT HE SAID 9404260009 940426 TECHNOLOGY & HEALTH US SELECTS FIVE AREAS OF TECHNOLOGY TO BACK WITH RESEARCH FUNDS IN THE '90S BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION PICKED FIVE HOT TECHNOLOGY AREAS TO RECEIVE RESEARCHANDDEVELOPMENT DOLLARS DURING THE 1990S INCLUDING GENETICS AND MAKING CARS WEIGH LESS THE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY AN ARM OF THE COMMERCE DEPARTMENT YESTERDAY SAID IT WOULD PUMP 745 MILLION OVER FIVE YEARS INTO THE PROGRAMS MARKING THE FIRST TIME GOVERNMENT OFFICIALS HAVE HANDPICKED SPECIAL INDUSTRIES TO SUPPORT PREVIOUS ASSISTANCE HAS GONE TO SPECIFIC PROJECTS THE MONEY IS A SMALL PIECE OF THE APPROXIMATELY 70 BILLION THAT THE FEDERAL GOVERNMENT SPENDS ON RESEARCH AND DEVELOPMENT ANNUALLY BUT IT REVEALS THE ADMINISTRATION'S PRIORITIES AND COULD BE A PARTICULAR BOOST FOR SMALL AND MEDIUMSIZED BUSINESSES THAT RECEIVE A BIG CHUNK OF NIST MONEY THESE ARE AREAS THAT A ARE HOT BUT B ARE ONES THAT PEOPLE DON'T THINK THE INDUSTRY CAN DEVELOP WITH ITS OWN INVESTMENTS SAID ARATI PRABHAKAR NIST DIRECTOR NOT SURPRISINGLY HEALTH CARE IS AMONG THEM THE GOVERNMENT PLANS TO SPEND 185 MILLION OVER FIVE YEARS TO DEVELOP A NATIONWIDE HEALTHCARE INFORMATION INFRASTRUCTURE THAT WOULD INCLUDE MAKING PATIENT DATA MORE ACCESSIBLE TO HEALTHCARE PROVIDERS AND HEALTH INFORMATION MORE AVAILABLE TO THE GENERAL PUBLIC THE ADMINISTRATION PLANS TO SPEND 145 MILLION OVER FIVE YEARS TO DEVELOP DNA ANALYSIS TECHNOLOGIES AND EQUIPMENT THAT WOULD MAKE IT LESS EXPENSIVE TO FIND AND DIAGNOSE HUMAN ANIMAL AND PLANT DISEASES NIST IS PEGGING 160 MILLION OVER FIVE YEARS TOWARD AN EFFORT TO MAKE AUTOMOBILES WEIGH LESS AND BRIDGES AND ROADS LAST LONGER IT HAS ALLOCATED 150 MILLION OVER THE SAME PERIOD TO DEVELOPING REUSABLE PARTS FOR LARGE SOFTWARE SYSTEMS IN PLACE TODAY AND IT PLANS TO FUNNEL 105 MILLION OVER FIVE YEARS FOR ELECTRONICSINDUSTRY RESEARCH IDENTIFYING THESE SPECIAL AREAS IS PART OF THE CLINTON ADMINISTRATION EFFORT TO RESPOND TO THE INDUSTRIAL POLICY INITIATIVES OF MAJOR TRADING PARTNERS SUCH AS JAPAN WHICH HAS LONG TAPPED TECHNOLOGIES FOR FEDERAL GOVERNMENT BACKING THE AIM IS TO SPEED UP THE INTRODUCTION OF THE TECHNOLOGIES INTO THE MARKET THE TECHNOLOGIES WERE PICKED FROM 550 WHITE PAPERS THAT INDUSTRY HAD SENT TO THE GOVERNMENT SINCE LAST OCTOBER AND THE MONEY WILL BE CHANNELED THROUGH THE DEPARTMENT'S ADVANCED TECHNOLOGY PROGRAM THAT PROGRAM IS SLATED FOR AN 80 BOOST IN FEDERAL SPENDING TO ALMOST 1 BILLION IN THE FISCAL YEAR THAT BEGINS NEXT OCT 1 A SIGNAL OF HOW MUCH THE GOVERNMENT WANTS TO SUPPORT TECHNOLOGIES IT CONSIDERS CUTTINGEDGE MS PRABHAKAR SAID NIST PLANS TO ANNOUNCE AS MANY AS SIX MORE AREAS FOR SPECIAL SPENDING THIS NOVEMBER AND AS MANY AS TWO DOZEN OVER THE NEXT FEW YEARS BUT THE ADMINISTRATION HAS LONG HESITATED TO ASSOCIATE ITSELF WITH PICKING WINNERS AND LOSERS IN THE TECHNOLOGY RACE AND EVEN YESTERDAY MS PRABHAKAR WAS CAREFUL TO NOTE THESE ARE THE AREAS THAT INDUSTRY SAYS ARE EXCITING NIST HAS BEEN CRITICIZED OVER THE YEARS FOR WASTING MONEY ON PROJECTS THAT DON'T END UP BOOSTING THE US ECONOMY MUCH OR ON RESEARCH THAT DOESN'T REFLECT THE NEEDS OF US INDUSTRY THIS IS CLEARLY AN EFFORT TO MUTE THAT CRITICISM BUT CORPORATE RESEARCHERS SAY THE TEST OF CLINTON ADMINISTRATION POLICY WILL BE IN HOW WELL THE NEW DOLLARS CAN BE APPLIED TO THE MARKETPLACE THE WAY NIST WORKS ITS OFFICIALS WILL PICK CERTAIN RESEARCH PROJECTS THAT FIT INTO THE FIVE INDUSTRIAL AREAS THAT IT SELECTED FOR SPECIAL SUPPORT IT PLANS TO RELEASE ITS COMPETITION RULES OVER THE NEXT SEVERAL WEEKS 9404260008 940426 TECHNOLOGY & HEALTH UPJOHN MINIMIZED HALCION'S HAZARDS FDA REPORT FINDS BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON INVESTIGATORS FOR THE FOOD AND DRUG ADMINISTRATION CONCLUDED THAT UPJOHN CO ENGAGED IN AN ONGOING PATTERN OF MISCONDUCT INVOLVING ITS SLEEPING PILL HALCION IN A NEW REPORT AGENCY INVESTIGATORS CONTEND THAT THE COMPANY UNDERREPORTED THE NUMBER OF SERIOUS ADVERSE REACTIONS BY USERS OF THE DRUG THE DOCUMENTS WERE OBTAINED BY NEWSWEEK MAGAZINE UNDER THE FREEDOM OF INFORMATION ACT THE FDA REPORT WAS WRITTEN THIS MONTH BUT WAS BASED ON AN INVESTIGATION CONDUCTED IN LATE 1991 AND EARLY 1992 IN THE REPORT INVESTIGATORS ACCUSED UPJOHN OF PLAYING DOWN THE HAZARDS OF LONGTERM USE OF THE DRUG CITING THE DOCUMENTS SIDNEY WOLFE DIRECTOR OF PUBLIC CITIZEN'S HEALTH RESEARCH GROUP CALLED ON THE FDA TO REFER THE ISSUE TO THE JUSTICE DEPARTMENT FOR A GRAND JURY INVESTIGATION DR WOLFE HAS URGED THAT HALCION BE BANNED IN THE US AS IT HAS BEEN IN BRITAIN UPJOHN CATEGORICALLY REJECTED DR WOLFE'S ASSERTION AND SAID THAT IT DISAGREES WITH THE CONCLUSIONS OF THE FDA DOCUMENT IT SAID IT PRESENTED CORRECTED DATA ON HALCION TO THE FDA IN MAY 1992 AN FDA SPOKESMAN SAID THE AGENCY WOULD INVESTIGATE THE ISSUE BUT THAT THE REPORT CONTAINED LITTLE NEW INFORMATION SEPARATELY AN FDA ADVISORY COMMITTEE VOTED 80 AGAINST RECOMMENDING THE APPROVAL OF ANOTHER DRUG MADE BY UPJOHN DERACYN FOR THE SHORTTERM TREATMENT OF PANIC DISORDER THE PANEL SAID THE COMPANY DIDN'T PRESENT ENOUGH DATA TO REACH CONCLUSIONS ABOUT THE EFFECTIVENESS OF THE DRUG AN UPJOHN SPOKESMAN SAID THE COMPANY WAS DISAPPOINTED BUT WOULD WORK WITH THE FDA TO RESOLVE OUTSTANDING ISSUES 9404260007 940426 BUSINESS BRIEF GM'S SATURN DIVISION TO BOOST PRODUCTION AFTER SELLING STOCKS DETROIT GENERAL MOTORS CORP'S SATURN SMALLCAR DIVISION SAID IT IS BOOSTING ITS PRODUCTION BACK TO FULL SPEED AFTER MAKING GOOD ON A PROMISE TO REDUCE HEAVY STOCKS OF UNSOLD VEHICLES THE RESUMPTION OF FULLSPEED PRODUCTION AT SATURN'S SPRING HILL TENN PLANT COULD PAVE THE WAY FOR GM TO DECIDE LATER THIS YEAR WHETHER TO INVEST IN ANOTHER FACTORY FOR THE SUBSIDIARY LAUNCHED AS A 35 BILLION EFFORT TO REVOLUTIONIZE GM'S MANUFACTURING AND SALES PRACTICES SATURN HAS SCRAMBLED RECENTLY TO PROVE TO SKEPTICS WITHIN GM THAT IT COULD REPAY ADDITIONAL PLANT AND PRODUCT INVESTMENT WITHOUT TAKING SALES FROM OTHER GM DIVISIONS IN MARCH SATURN'S EXPANSION PLANS SUFFERED A SETBACK WHEN THE UNIT CUT PRODUCTION AT SPRING HILL BY 29 TO 800 VEHICLES A DAY FROM 1133 CARS A DAY THE MOVE CAME AS SALES OF SATURN'S THREEYEAR OLD SEDANS AND COUPES APPEARED TO SLOW IN THE FACE OF CHALLENGES FROM CHRYSLER CORP'S NEW DODGE NEON AND OTHER RIVALS YESTERDAY SATURN SAID STRONG SALES IN APRIL SPURRED BY SOME HEAVILY ADVERTISED LEASING DEALS COUPLED WITH THE PRODUCTION CUT HAD BROUGHT ITS INVENTORY LEVELS BACK TO A MORE ACCEPTABLE 66DAY'S SUPPLY OF VEHICLES IN MARCH SATURN DEALERS HAD A 91DAY'S SUPPLY OF UNSOLD VEHICLES A 60TO65 DAY'S SUPPLY IS CONSIDERED IDEAL IN FEBRUARY GM BEGAN TO OFFER COMPETITIVE LEASE DEALS ON SATURN CARS WHICH INCREASED THE PERCENTAGE OF CARS IT HAS SOLD RECENTLY ON A LEASING BASIS TO 14 COMPARED WITH 4 A YEAR EARLIER A TYPICAL SATURN LEASING DEAL REQUIRES 1000 DOWN PLUS A 350 ACQUISITION FEE UP FRONT AND 36 MONTHLY PAYMENTS OF 168 9404260006 940426 TECHNOLOGY US HEALTHCARE NET ROSE 42 IN 1ST PERIOD STOCK DECLINES 10 BLUE BELL PA US HEALTHCARE INC REPORTED A 42 GAIN IN FIRSTQUARTER NET INCOME BUT CONCERNS ABOUT MEMBERSHIP GROWTH AND THE PACE OF REVENUE GAINS SENT THE COMPANY'S STOCK TUMBLING FOR THE QUARTER THE MANAGED HEALTHCARE COMPANY REPORTED NET INCOME OF 893 MILLION OR 55 CENTS A SHARE UP FROM 63 MILLION OR 39 CENTS A SHARE IN THE YEARAGO PERIOD REVENUE INCREASED 12 TO 7159 MILLION FROM 6407 MILLION IN NASDAQ STOCK MARKET TRADING US HEALTHCARE FELL 450 OR 10 TO 3875 ON HEAVY VOLUME OTHER MANAGED HEALTHCARE STOCKS ALSO FELL IN LATE NASDAQ TRADING OXFORD HEALTH PLANS INC DARIEN CONN FELL 875 CENTS TO 54125 UNITED HEALTHCARE CORP MINNETONKA MINN DROPPED 1 TO 39875 IN LATE NEW YORK STOCK EXCHANGE TRADING MEMBERSHIP AMONG US HEALTHCARE'S HEALTHMAINTENANCE ORGANIZATIONS GREW TO ABOUT 17 MILLION FROM 15 MILLION IN THE YEARAGO QUARTER THE ENROLLMENT WAS GOOD ON A LARGE BASE BUT IT WAS LOWER THAN WHAT OTHER HMOS HAVE BEEN GETTING SAID ELEANOR KEARNS AN ANALYST WITH ALEX BROWN WHO RECOMMENDS THE STOCK JOYCE ALBERS AN ANALYST WITH CS FIRST BOSTON ADDED THAT REVENUE GROWTH DIDN'T KEEP PACE WITH SOME EXPECTATIONS THE SLOWER LEVEL OF TOPLINE GROWTH HAS CREATED SOME CONCERNS MS ALBERS SAID SHE ADDED THAT REVENUE GROWTH ISN'T LIKELY TO ACCELERATE IN THE CURRENT HEALTHCARE ENVIRONMENT EARNINGS FOR THE QUARTER CAME PRIMARILY FROM DROPPING MEDICAL COSTS AS A PERCENTAGE OF PREMIUMS MEDICAL COSTS FELL TO 705 FROM 756 IN THE 1993 FIRST QUARTER MS KEARNS EXPRESSED CONCERN ABOUT THE SUSTAINABILITY OF SUCH LOWER COSTS ADDING TO HER WORRIES THAT SLOWING MEMBERSHIP GROWTH COULD ADVERSELY IMPACT EARNINGS 9404260005 940426 AMWEST PARTNERS BID FOR CARRIER TO PROCEED DESPITE FEE REVISION PHOENIX THE INVESTMENT GROUP THAT SUCCESSFULLY BID FOR AMERICA WEST AIRLINES INC SAID THAT IT WOULD PROCEED WITH ITS PROPOSAL TO BUY THE CARRIER DESPITE A MODIFICATION TO THE FEE IT MIGHT RECEIVE IF THE TRANSACTION FALTERS AMWEST PARTNERS LP HAD SAID LAST WEEK THAT IT MIGHT WALK AWAY FROM ITS PROPOSED 2449 MILLION BUYOUT IF THE BANKRUPTCY COURT JUDGE OVERSEEING AMERICA WEST'S CASE REJECTED THE GROUP'S REQUEST FOR A 4 MILLION TO 8 MILLION BREAKUP FEE THE PAYMENT WOULD GO TO THE INVESTMENT GROUP WHOSE MEMBERS INCLUDE DAVID BONDERMAN AND JAMES COULTER OF FORT WORTH TEXAS AS WELL AS CONTINENTAL AIRLINES MESA AIRLINES AND FIDELITY MANAGEMENT & RESEARCH CO A UNIT OF FMR CORP MR BONDERMAN IS CONTINENTAL'S NONEXECUTIVE CHAIRMAN US BANKRUPTCY JUDGE ROBERT MOOREMAN HAD RULED THE FEE UNNECESSARILY CHILLS BIDDING FROM OTHER INVESTORS UNDER AN AGREEMENT ANNOUNCED LATE YESTERDAY AMWEST PARTNERS SAID THE CARRIER CAN TERMINATE THE AGREEMENT WITH THE INVESTMENT GROUP WITHOUT PAYING THE FEE BEFORE THE COURT APPROVES THE DISCLOSURE STATEMENT SPELLING OUT HOW CREDITORS WILL BE REPAID SIMILARLY AMWEST PARTNERS ALSO CAN TERMINATE THE AGREEMENT BEFORE THE DISCLOSURE STATEMENT IS APPROVED THE INVESTMENT GROUP CAN HOWEVER SEEK COURT APPROVAL FOR UP TO 4 MILLION IN COMPENSATION FOR ANY BENEFIT TO AMERICA WEST THAT COMES FROM AMWEST PARTNER'S PARTICIPATION SUCH AS A WINNING BID BY A RIVAL SUITOR NEW YORK MONEY MANAGER MICHAEL STEINHARDT IS PART OF AN INVESTMENT GROUP THAT SUBMITTED A 220 MILLION BID FOR AMERICA WEST BUT THE CARRIER'S BOARD ITS UNSECURED CREDITORS AND EQUITY SHAREHOLDERS COMMITTEES BACK THE AMWEST PARTNERS' OFFER 9404260004 940426 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS APRIL 26MAY 9 THIS IS THE FIRST AMERICAN EXHIBIT TO FOCUS ON HOW AND WHY REMEMBRANCE OF THE HOLOCAUST IS BEING SHAPED BY MUSEUMS AND MONUMENTS IN THE US ISRAEL AND EUROPE MORE THAN 200 IMAGES AND OBJECTS ILLUSTRATE THE MANY DIMENSIONS OF MEMORIALS THEIR POTENTIAL AND THEIR LIMITATIONS THE EXHIBIT NEXT MOVES TO THE DEUTSCHES HISTORICHES MUSEUM IN BERLIN THE MUNCHNER STADTMUSEUM IN MUNICH AND SEVERAL OTHER VENUES IN GERMANY AND AUSTRIA THESE EARLY PRINTED EDITIONS OF DANTE'S DIVINE COMEDY NOT ONLY SHOW OFF THE POEM ITSELF BUT ALSO THE EVOLUTION OF PRINTING AND ITS IMPACT ON INTERPRETATIONS OF DANTE'S GREAT SPIRITUAL EPIC OVER TIME THIS SHOW FEATURES MURALSIZE PAINTINGS AND LARGE MIXEDMEDIA WORKS ON PAPER BY ARTIST SUSAN CRILE WHO WENT TO KUWAIT AND PHOTOGRAPHED FIREFIGHTERS BATTLING THE BLAZES LEFT BY SADDAM HUSSEIN'S RETREATING ARMY AND THEN TRANSFERRED THOSE IMAGES TO CANVAS AS PART OF THE 120TH ANNIVERSARY OF THE GERMAN EASTASIATIC SOCIETY THIS EXHIBITION OF 140 MAPS AND RELATED MATERIALS DATING FROM THE EARLY 16TH THROUGH THE 19TH CENTURIES DOCUMENTS EUROPE'S ZEAL FOR EXPLORATION INCLUDED IS BENEDETTO BORDONE'S 1528 MAP THE EARLIEST KNOWN PRINTED MAP DEVOTED TO JAPAN CREATED 20 YEARS BEFORE THE FIRST EUROPEAN EXPLORERS VISITED THE ISLAND NATION A WEEK OF CLASSICAL JAZZ BLUES AND CONTEMPORARY KEYBOARD CONCERTS AND SEMINARS AT FOUR VENUES IN SOUTHWESTERN MICHIGAN FINNISH CLASSICAL PIANIST RALF GOTHONI WAS NAMED THIS YEAR'S GILMORE ARTIST AND OPENED THE FESTIVAL SATURDAY NIGHT BUT HE ALSO CAN BE SEEN THURSDAY IN GRAND RAPIDS OTHER ARTISTS YET TO PERFORM INCLUDE TOMMY FLANAGAN THE MARSALIS FAMILY AND RAY CHARLES CALL FOR DATES AND VENUES THE SPRING SEASON OPENS ON APRIL 30 WITH A NEW PRODUCTION OF DER ROSENKAVALIER WITH ASHLEY PUTNAM AS THE SADLY SMILING MARSCHALLIN AND CHERYL PARRISH AS THAT CUTE LITTLE ROCOCO DEVIL OCTAVIAN THE COMPANY'S GENERAL DIRECTOR NATHANIEL MERRILL WELLREMEMBERED FOR HIS HANDSOMELY REALISTIC PRODUCTION AT THE MET 25 YEARS AGO WILL STAGE THE PIECE THE CONDUCTOR IS LOUISE SHERMAN THE COMPANY'S MUSIC DIRECTOR BOETTCHER CONCERT HALL 13TH STREET AT CURTIS ALSO MAY 3 6 AND 8 303 98MUSIC PUCCINI'S TURANDOT IS PLAYING HERE IN A COLORDRENCHED PRODUCTION BY THE ARTIST DAVID HOCKNEY HUNGARIAN PRIMA DONNA EVA MARTON SINGS THE CHILLY PRINCESS OF THE HIGH C MICHAEL SYLVESTER IS THE QUESTING PRINCE ALEXANDER SAVTCHENKO IS BLIND TIMUR AND LIVA AGHOVA APPEARS AS LIU PETER MCCLINTOCK DIRECTS JOHN DEMAIN CONDUCTS 9404260002 940426 UNIT OF KERRMCGEE TO SPEND 150 MILLION ON THORIUM CLEANUP WEST CHICAGO ILL AP KERRMCGEE CHEMICAL CORP WILL SPEND ABOUT 150 MILLION REMOVING SOIL CONTAMINATED WITH RADIOACTIVE THORIUM FROM A SITE IN SUBURBAN CHICAGO ABOUT 320000 TONS OF SOIL WILL BE REMOVED FROM THE FORMER PLANT OF LINDSAY LIGHT & CHEMICAL CO WHICH EXTRACTED THORIUM AND RADIUM FROM ORES AT ITS FACTORY TO MAKE LAMP MANTLES THAT GLOWED WHEN HEATED BETWEEN 1931 AND 1958 BUILDERS LANDSCAPERS AND HOMEOWNERS TOOK THE FACTORY'S DIRTLIKE BYPRODUCTS AND USED THEM AS FILL KERRMCGEE CHEMICAL A UNIT OF KERRMCGEE CORP A PETROLEUM CHEMICALS AND COAL COMPANY BASED IN OKLAHOMA CITY BECAME RESPONSIBLE FOR THE SITE WHEN IT BOUGHT THE PROPERTY IN 1967 THE SOIL FROM THE FACTORY SITE WILL BE SHIPPED BY RAIL TO A WASTE FACILITY IN CLIVE UTAH UNDER AN AGREEMENT REACHED BETWEEN KERRMCGEE THE STATE AND WEST CHICAGO RESIDENTS THE COMPANY SAID GOV JIM EDGAR SAID KERRMCGEE WILL PAY FOR THE CLEANUP WHICH WILL COST AN ESTIMATED 150 MILLION MR EDGAR SAID THE AGREEMENT CALLS FOR THE DISMISSAL OF SEVERAL LAWSUITS BETWEEN KERRMCGEE AND STATE AND LOCAL GOVERNMENTS PROLONGED EXPOSURE TO THORIUM RADIATION HAS BEEN LINKED TO INCREASED INCIDENCE OF LEUKEMIA LUNG CANCER SKIN CANCER AND BREAST CANCER SAID DR ARTHUR UPTON A PROFESSOR OF ENVIRONMENTAL MEDICINE AT THE NEW YORK UNIVERSITY SCHOOL OF MEDICINE THE AGREEMENT DOESN'T AFFECT PRIVATE PROPERTY THAT HAS BEEN CONTAMINATED THAT HAS BEEN DESIGNATED FOR CLEANUP THROUGH THE US ENVIRONMENTAL PROTECTION AGENCY'S SUPERFUND EPA OFFICIALS HAVEN'T WORKED OUT DETAILS OF THAT CLEANUP BUT THEY SAID COSTS WOULD BE ASSESSED TO KERRMCGEE 9404260001 940426 VIACOM STEPS UP COST CUTS ASSET SALES AS BLOCKBUSTER MERGER SEEMS DOOMED BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK VIACOM INC IS STEPPING UP A CAMPAIGN TO CUT COSTS AND SELL ASSETS IN THE EXPECTATION THAT ITS MERGER WITH BLOCKBUSTER ENTERTAINMENT CORP WILL COLLAPSE ACCORDING TO PEOPLE CLOSE TO THE COMPANY BUT IN AN INTERVIEW VIACOM CHAIRMAN SUMNER REDSTONE VIGOROUSLY DENIED THAT THE CABLETELEVISION OPERATOR AND PROGRAMMER PLANS TO SELL ANY STRATEGIC ASSETS TO RAISE CASH TO HELP PAY DOWN DEBT FROM VIACOM'S 96 BILLION ACQUISITION OF PARAMOUNT COMMUNICATIONS INC A PUBLISHING AND ENTERTAINMENT CONCERN THOUGH HE ACKNOWLEDGED THE COMPANY IS WEIGHING UNSOLICITED OFFERS FOR WHAT HE TERMED NONSTRATEGIC ASSETS HE INDICATED THE COMPANY WON'T FACE A CASH CRUNCH IF THE BLOCKBUSTER DEAL FALLS THROUGH MR REDSTONE SAID YESTERDAY THAT WHETHER OR NOT BLOCKBUSTER IS IN THE PICTURE NOT A SINGLE STRATEGIC ASSET WILL WE SELL AT ANY PRICE WITHOUT IDENTIFYING ANY PARTICULAR ASSET MR REDSTONE INDICATED HE CONSIDERS A NONSTRATEGIC HOLDING AS ONE WITH A MARKET VALUE FAR EXCEEDING THE CASH THAT THE OPERATION GENERATES SPECULATION THAT VIACOM WILL HAVE TO UNLOAD ASSETS TO GENERATE CASH HAS MOUNTED ON WALL STREET AMID A GROWING CONSENSUS THAT VIACOM'S PROPOSED ACQUISITION OF VIDEORENTAL CONCERN BLOCKBUSTER WON'T BE COMPLETED VIACOM HAD BEEN COUNTING ON CASH FLOW FROM BLOCKBUSTER TO HELP EASE THE DEBT BURDEN FROM THE PARAMOUNT ACQUISITION WHICH IS EXPECTED TO CLOSE WITHIN A FEW WEEKS AFTER A FINAL SHAREHOLDER VOTE BUT THE PROSPECTS FOR THE BLOCKBUSTER DEAL IN WHICH VIACOM WOULD ACQUIRE BLOCKBUSTER FOR STOCK HAVE BECOME INCREASINGLY BLEAK AS THE VALUE OF VIACOM'S STOCK HAS PLUNGED VIACOM CLASS B SHARES CLOSED YESTERDAY AT 2325 UNCHANGED IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE THE SHARES WERE TRADING AT ABOUT 40 A SHARE AT THE TIME THE MERGER WAS ANNOUNCED SOME VIACOM OFFICIALS HAVE PRIVATELY CONCEDED THAT THEY DON'T EXPECT THE BLOCKBUSTER MERGER TO GO THROUGH AT LEAST ON ITS PRESENT TERMS MR REDSTONE DECLINED TO COMMENT YESTERDAY ON THE STATUS OF THE MERGER FOLLOWING THE COMPLETION OF ITS MERGER WITH PARAMOUNT 51 OF WHICH VIACOM ALREADY CONTROLS ANALYSTS ESTIMATE THE COMPANY'S WRITEOFFS OF PARAMOUNT MOVIES AND OTHER PROJECTS COULD BE SIZABLE THEY COULD TAKE A WRITEOFF OF 1 BILLION SAID JOHN TINKER AN ANALYST WITH FURMAN SELZ INC HE ADDED THAT THE EARNINGS HIT WOULD CLEAR THE WAY FOR VIACOM TO SHOW HEALTHY YEARTOYEAR EARNINGS GAINS IN THE FUTURE MR REDSTONE DECLINED TO COMMENT ON PLANS FOR WRITEOFFS MANY ON WALL STREET STILL VIEW THE PARAMOUNT ACQUISITION AS A GOOD STRATEGIC FIT BUT THE STEEP PRICE VIACOM PAID AND THE 8 BILLION IN DEBT IT HAS TAKEN ON HAVE LED SOME TO CONCLUDE THAT WITHOUT THE BLOCKBUSTER MERGER VIACOM HAS FAR LESS FLEXIBILITY GOING FORWARD WITHOUT MAJOR ASSET SALES ACCORDING TO A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION VIACOM HAS A 37 BILLION BANK PAYMENT DUE IN MIDNOVEMBER THE COMPANY IS EXPECTED TO REFINANCE THAT BANK DEBT BUT IT WILL HAVE TO PAY A BIG BANK FEE AND HIGHER INTEREST RATES AS A RESULT AS REPORTED THE COMPANY IS WEIGHING OFFERS FOR PARAMOUNT'S MADISON SQUARE GARDEN WHICH ANALYSTS BELIEVE COULD FETCH MORE THAN 1 BILLION IN ANTICIPATION THAT THE BLOCKBUSTER DEAL WON'T GO THROUGH VIACOM INSIDERS SAY THE COMPANY HAS ALSO IDENTIFIED OTHER POSSIBLE ASSET SALES INCLUDING SEVERAL UNITS OF PARAMOUNT'S PUBLISHING OPERATIONS THEY EMPHASIZED HOWEVER THAT PARAMOUNT PUBLISHING'S CHAIRMAN RICHARD SNYDER AND HIS EXECUTIVES SELECTED THE OPERATIONS THAT ARE BEING SOLD PEOPLE FAMILIAR WITH PLANS SAY THE OPERATIONS MIGHT FETCH UP TO 200 MILLION FOR HIS PART MR REDSTONE DECLINED TO COMMENT ABOUT THE PUBLISHING OPERATIONS THOUGH HE DESCRIBED SIMON & SCHUSTER THE FLAGSHIP OF THE PUBLISHING OPERATIONS AS A STRATEGIC ASSET ON OTHER FRONTS VIACOM HAS ALSO IDENTIFIED ABOUT 40 MILLION IN CORPORATE OVERHEAD SAVINGS FROM JETTISONING MUCH OF PARAMOUNT'S CORPORATE STAFF ACCORDING TO INSIDERS IN ADDITION VIACOM IS ASKING SOME OF THE PARAMOUNT OPERATIONS TO SLOW PAYMENTS TO VENDORS ACCORDING TO INSIDERS MR REDSTONE DECLINED TO COMMENT VIACOM HOWEVER HAS TRADITIONALLY MANAGED ITS CASH CAREFULLY SO EXTENDING THE PRACTICE TO PARAMOUNT WOULDN'T BE SURPRISING WITH INTEREST RATES RISING RECENTLY THE COMPANY IN RECENT WEEKS MOVED TO LOCK IN INTEREST RATES ON SOME OF ITS DEBT THE RATES HAD FLUCTUATED IN LINE WITH OVERALL MARKET RATES YESTERDAY CITING A LOWER PROBABILITY FOR THE COMPLETION OF THE DEAL STANDARD & POOR'S RATINGS GROUP REITERATED ITS LIKELY INTENT TO DOWNGRADE VIACOM'S DEBT TO LESS THAN INVESTMENT GRADE THE MOVE BY THE RATINGS AGENCY ADDED TO THE GROWING CONSENSUS IN FINANCIAL CIRCLES THAT THE COMBINED VIACOMPARAMOUNT WITHOUT BLOCKBUSTER FACES A FAR MORE DIFFICULT FINANCIAL FUTURE GIVEN THE DECLINE IN VIACOM'S STOCK SINCE THE MERGER WITH BLOCKBUSTER WAS ANNOUNCED S&P SAID THERE IS A LOWER PROBABILITY OF THE MERGER WITH BLOCKBUSTER BEING CONSUMMATED AS CURRENTLY PROPOSED 9404260175 940329 SEMIPROSE PERHAPS BUT SPORTSWRITING BY SOFTWARE IS A HIT REPORTERS SOMETIMES SACKED AREN'T SO GLEEFUL WOULD GRANTLAND RICE BE FIRED BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL DEAN BACKES USED TO WORK AS A SPORTSWRITER FOR THE WEEKLY HUMPHREY DEMOCRAT IN HUMPHREY NEB EACH WINTER AS BLIZZARDS ROARED ACROSS THE GREAT PLAINS HE COVERED AS MANY AS EIGHT HIGHSCHOOL BASKETBALL GAMES AN ISSUE I LOVED IT HE SAYS YOU GET KIND OF ADDICTED BUT TWO YEARS AGO TECHNOLOGY CAME ROARING INTO THE DEMOCRAT'S NEWSROOM THE PAPER BOOTED UP A SOFTWARE PROGRAM AND BOOTED OUT MR BACKES THE SOFTWARE DIDN'T TALK BACK AND COULD WRITE PROLIFICALLY IF NOT PARTICULARLY WELL CONSIDER THIS LEAD PARAGRAPH THE HUMPHREY BULLDOGS FELL VICTIM TO A SECONDHALF RALLY AND DROPPED A CLOSE DECISION TO THE LEIGH LADY PANTHERS 2724 IN GIRLS BASKETBALL AT CLARKSON IN THE FIRST ROUND OF THE CORNHUSKER CONFERENCE TOURNAMENT THE HARDBALL DECISION TO REPLACE A REPORTER WITH SOFTWARE WAS EASY ENOUGH TO JUSTIFY SPORTSWRITER AS THE PROGRAM IS CALLED COSTS 100 WE WERE LAYING OUT 1500 A MONTH FOR THE SPORTS REPORTER SAYS DONALD ZAVADIL EDITOR AND OWNER OF THE 1800CIRCULATION WEEKLY IN NEWSPAPER OFFICES AROUND THE COUNTRY COMPUTERS HAVE REPLACED TYPEWRITERS NOW THEY ARE REPLACING REPORTERS SPORTSWRITER IS ONE OF A NEW GENRE OF SOFTWARE THAT CAN INTELLIGENTLY STRING WORDS BETWEEN FACTS POP A DISK INTO A PC TYPE IN A FEW NUMBERS AND COMMENTS AND PRESTO OUT COME STORIES AWASH IN CLUTCH SHOTS RUNAWAY VICTORIES AND ATTHEBUZZER HEROICS IT'S SCARY HUH SAYS DON SKWAR SPORTS EDITOR OF THE BOSTON GLOBE IN 40 OR 50 YEARS A COMPUTER MIGHT BE SPORTS EDITOR STILL SPORTSWRITER HASN'T WON ANY WRITING PRIZES MUCH LESS PROVED ITSELF A MATCH FOR TALENTS SUCH AS THE LEGENDARY GRANTLAND RICE WHO SET NOTRE DAME'S FOUR HORSEMEN AGAINST A BLUE GRAY OCTOBER SKY BUT IT MAY BE THE FUTURE SOME 80 SMALL NEWSPAPERS IN THE MIDWEST HAVE ALREADY BOUGHT SPORTSWRITER PUBLISHED BY ZYBRAINICS SOFTWARE INC ROCHESTER MINN TO WRITE HIGHSCHOOL FOOTBALL OR BASKETBALL GAMES SUCH ECONOMIES DON'T END AT THE SPORTS DESK AT THE BLOOMBERG LP FINANCIAL NEWS SERVICE IN NEW YORK COMPUTERS WRITE HOURLY STOCKMARKET SUMMARIES AND FOREIGNMARKET TRENDS AT INDIVIDUAL INC IN CAMBRIDGE MASS COMPUTERS SORT THROUGH THOUSANDS OF NEWSPAPER MAGAZINE AND WIRESERVICE ARTICLES AND COMPILE THEM INTO CUSTOMIZED NEWSLETTERS FAXED DAILY TO 3000 SUBSCRIBERS MR SKWAR SAYS SUCH AUTOMATIC JOURNALISM TAKES AWAY CREATIVITY THAT ONLY REAL WRITERS CAN PROVIDE BUT SOME USERS SAY SOFTWAREGENERATED PROSE ENABLES THEM TO WRITE ABOUT EVENTS THEY WOULD OTHERWISE HAVE TO SKIP WE HAVE A VERY SMALL STAFF HERE AND IT ALLOWS US TO DO A FAIRLY DECENT STORY SAYS JOHN EDGECOMBE JR PUBLISHER OF THE NEBRASKA SIGNAL A WEEKLY IN GENEVA NEB STILL COMPUTER JOURNALISM RAISES MORE THAN ISSUES OF CREATIVITY SPORTSWRITER ALLOWS SOURCES NOT REPORTERS TO CHOOSE THE QUOTATIONS THAT APPEAR IN PRINT VIOLATING WHAT MANY SEE AS A SACRED TENET OF JOURNALISM THE PROGRAMS ALSO DON'T DIG INTO ANYTHING OR CHALLENGE THE VALUE OR EVEN VALIDITY OF THE DATA FED INTO THEM BUT THEY DO PROVE THAT COMPUTERS CAN PRODUCE SERVICEABLE STORIES IN SPECIALIZED DOMAINS INDEED SPORTSWRITER IS PROGRAMMED WITH EVERY POSSIBLE SPORTS CLICHE TEAMS JUMP IN FRONT SCORES ARE KNOTTED AND PLAYERS MAKE CHARITY TOSSES FROM THE FOUL LINE SPORTSWRITER WAS DEVELOPED BY ROGER HELMS A 42YEAROLD FREELANCE WRITER IN ROCHESTER MINN MR HELMS WANTED TO BUY A WEEKLY NEWSPAPER AND IMPROVE ITS SPORTS COVERAGE SO USING AN APPLE MACINTOSH PROGRAM CALLED HYPERCARD HE SET OUT TO DESIGN A PROGRAM THAT WOULD TUTOR HIGHSCHOOL REPORTERS ON WRITING SPORTS STORIES AS A TUTOR IT WAS A DUD I DECIDED THAT THE ONLY THING MY PROGRAM WAS GOOD AT WAS MAKING ITS OWN DECISIONS MR HELMS SAYS BUT AS A WRITER IT WASN'T BAD IT WORKS LIKE THIS NEWSPAPERS GIVE COACHES A FORM TO FILL OUT AT A GAME'S END THEY WRITE IN THE TEAMS' RECORDS THE GAME SCORE BY PERIODS TEAM STATISTICS AND INDIVIDUAL STATISTICS COACHES ARE ALSO ASKED TO DESCRIBE KEY POINTS IN THE ACTION THE BIG PLAY IN A TOUCHDOWN DRIVE OR A GAMEWINNING SHOT COACHES CAN ALSO PROVIDE A BRIEF DESCRIPTION OF OUTSTANDING INDIVIDUAL PERFORMANCES AND QUOTATIONS THEN THE COACHES PHONE IN OR FAX THE FORM TO THE NEWSPAPER SOMEONE TYPES THE DATA INTO A COMPUTER AND A FEW SECONDS LATER SPORTSWRITER PRINTS OUT A STORY IT CAN ONLY HANDLE FOOTBALL AND BASKETBALL IN ONE RECENT EDITION OF THE HUMPHREY DEMOCRAT SPORTSWRITERCRAFTED LEAD PARAGRAPHS VARIED CONSIDERABLY INCLUDING ONE THAT HIGHLIGHTED AN INDIVIDUAL PLAYER JODY KOSCH MADE TWO FREE THROWS TO PUT ST FRANCIS UP BY FOUR POINTS AND SEAL THE WIN A STORY MAY EVEN JUDGE A GAME AN UPSET IF THE COACH CHECKED A BOX THAT SAYS THE OPPONENT WAS CLEARLY SUPERIOR TO US BUT EVERY LEAD INCLUDES THE SITE OF THE GAME SOMETHING WRITERS MIGHT SAVE FOR LOWER IN THE STORY EACH STORY ALSO HAS A QUARTERBYQUARTER SCORING SUMMARY AND A COUNT OF FREE THROWS AND FIELD GOALS SPORTSWRITER DOESN'T FOCUS ON SUBTLE DISPARITIES SUCH AS A BIG REBOUNDING EDGE THAT MIGHT EXPLAIN A VICTORY PENNYPINCHERS HOWEVER HAVE COME TO LOVE IT THOUGH SPORTSWRITER WRITES A LITTLE BELOW THE LEVEL OF A BEGINNING REPORTER IT CLEARLY OUTCLASSES COPY TURNED IN BY HIGHSCHOOL STRINGERS SAYS KEITH ISLEY EDITOR OF THE CHARITON IOWA LEADER AND HERALDPATRIOT THE PAPERS HAD BEEN SHELLING OUT UP TO 7 A GAME TO STRINGERS BUT TWO MONTHS INTO USING SPORTSWRITER WE RECOUPED OUR COST AND THE STORIES WERE SIGNIFICANTLY BETTER HE ADDS MR ISLEY CONCEDES THAT HE GETS GRIEF FROM PURISTS THEY SAY IT'S NOT JOURNALISM IF YOU DON'T GENERATE ALL THE INFORMATION YOURSELF HE SAYS HE DISMISSES THAT ARGUMENT AS BOOHOCKEY NOTING THAT SMALL PAPERS OFTEN RELY UPON COACHES TO PHONE IN INFORMATION TO REPORTERS ANYWAY AND HE AND OTHERS POINT OUT THAT SPORTSWRITER ISN'T BEING USED TO COVER MATTERS OF LOCAL CONTROVERSY OR NATIONAL IMPORTANCE NOW MR ISLEY SAYS HE MAINLY GOES TO GAMES TO TAKE PICTURES THE COMPUTER CAN'T TAKE PICTURES FROM THE COACHES' VIEWPOINT SPORTSWRITER OFFERS SOME OBVIOUS PLUSES YOU'RE NEVER MISQUOTED SAYS MARK ORTMEIR BOYS' BASKETBALL COACH AT HUMPHREY HIGH SCHOOL AND A COACH WRITING HIS OWN QUOTES STAYS OUT OF TROUBLE YOU JUST DON'T MENTION THE REFS HE ADDS MR BACKES THE DISPLACED NEBRASKA SPORTSWRITER CERTAINLY ISN'T MENTIONING THE REFS ANYMORE HE'S NOW SELLING FARM EQUIPMENT THOUGH HE SHOWS SURPRISINGLY LITTLE ANIMOSITY TOWARD THE TECHNOLOGY THAT REPLACED HIM HE CAN'T RESIST AT LEAST ONE DIG I WAS BETTER THAN SPORTSWRITER MR HELMS ITS INVENTOR WOULDN'T DISAGREE ANY SPORTSWRITER WHO IS MARGINALLY COMPETENT CAN WRITE MUCH BETTER AND ALSO MUCH FASTER HE SAYS MR HELMS HASN'T DISCOUNTED UPDATING SPORTSWRITER BUT HE IS ALREADY THINKING BEYOND SPORTS A VIRTUAL TV WEATHERPERSON WOULD BE A NATURAL HE SAYS YOU COULD CREATE AN IMAGE YOU COULDN'T TELL FROM A REAL PERSON SEE RELATED LETTER LETTERS TO THE EDITOR SOME HARD FACTS ABOUT SOFTWARE WSJ APRIL 14 1994 CORRECTIONS & AMPLIFICATIONS THE HUMPHREY DEMOCRAT NEWSPAPER IN HUMPHREY NEB LAID OFF SPORTS REPORTER DEAN BACKES SEVERAL MONTHS BEFORE IT STARTED USING SPORTSWRITER A SOFTWARE PROGRAM TO WRITE HIGHSCHOOL SPORTS STORIES A PAGEONE ARTICLE MARCH 29 LEFT THE IMPRESSION THAT HE WAS LAID OFF AFTER THE NEWSPAPER OBTAINED THE SOFTWARE AND THAT THE AVAILABILITY OF THE SOFTWARE WAS THE IMMEDIATE CAUSE OF HIS DEPARTURE THIS WASN'T THE CASE ALTHOUGH THE WORK PREVIOUSLY DONE BY MR BACKES NOW IS COMPUTERIZED WSJ APRIL 26 1994 9403290101 9404140064 YY94 MM04 9404260064 940328 ENTERPRISE DEBTCOLLECTION FIRM LINKED TO HOFFENBERG IS INDICTED PUBLISHER IS ALLEGED TO HAVE KEY ROLE IN DIVERSIFIED CREDIT CORP BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DIVERSIFIED CREDIT CORP A COMPANY CLOSELY ASSOCIATED WITH PUBLISHER AND DEBT COLLECTOR STEVEN HOFFENBERG HAS BEEN INDICTED FOR CRIMINAL FRAUD AND GRAND LARCENY THE INDICTMENT BY A STATE GRAND JURY IN SUFFOLK COUNTY NY IS THE FIRST CRIMINAL CHARGE FOCUSING PRIMARILY ON DEBTCOLLECTION ABUSE BY A COMPANY ASSOCIATED WITH MR HOFFENBERG IT FOLLOWS MONTHS OF COMPLAINTS BY SCORES OF SMALL BUSINESSES CONCERNING ALLEGED ABUSES BY DIVERSIFIED AND LENDS FURTHER CREDENCE TO ESCALATING CHARGES OF WRONGDOING IN THE COMMERCIAL DEBTCOLLECTION BUSINESS MR HOFFENBERG WAS ARRESTED LAST MONTH AND CHARGED WITH CRIMINAL SECURITIES FRAUD BY THE US ATTORNEY'S OFFICE IN MANHATTAN IN CONNECTION WITH ANOTHER OF HIS COMPANIES TOWERS FINANCIAL CORP LAW ENFORCEMENT OFFICIALS HAVE DESCRIBED THIS ALLEGED 450 MILLION FRAUD AS ONE OF THE LARGEST PONZI SCHEMES IN US HISTORY THOUGH MR HOFFENBERG AND HIS ATTORNEYS HAVE ACKNOWLEDGED THAT THE ENTREPRENEUR HAS BEEN A CONSULTANT TO DIVERSIFIED THEY HAVE REPEATEDLY DENIED THAT HE CONTROLS IT BUT AN ATTORNEY REPRESENTING LAWRENCE LOWY A FORMER DIVERSIFIED EXECUTIVE NAMED IN THE INDICTMENT SAID MR HOFFENBERG DID CONTROL THE COMPANY MR LOWY WAS REASSURED REPEATEDLY BY MR HOFFENBERG FROM DAY ONE THAT HE COULD MAKE GOOD ON ANY PAYMENTS NECESSARY BECAUSE HE WAS BANKROLLING THE CORPORATION THE ATTORNEY DONALD LEO SAID FRIDAY THE MONEY THAT DIVERSIFIED CREDITORS ARE MISSING WAS TAKEN FROM THE COMPANY BY MR HOFFENBERG THE ATTORNEY ADDED MR LEO SAID THAT MR HOFFENBERG WROTE ONE CHECK FOR 500000 TO FUND DIVERSIFIED'S OPERATIONS AND INVESTED AT LEAST 1 TO 2 MILLION MORE IN THE COMPANY IN A SUIT FILED LATE LAST YEAR IN US BANKRUPTCY COURT IN MANHATTAN TRUSTEES FOR TOWERS FINANCIAL CHARGED THAT MR HOFFENBERG FRAUDULENTLY TRANSFERRED 6 MILLION AND OTHER ASSETS FROM TOWERS INTO DIVERSIFIED AN ATTORNEY FOR MR HOFFENBERG HAS DENIED THESE CHARGES MR HOFFENBERG AND HIS CURRENT ATTORNEY JEFFREY HOFFMAN COULDN'T BE REACHED FOR COMMENT REGARDING THE DIVERSIFIED INDICTMENT MR HOFFENBERG WHO APPARENTLY CONTINUES TO OPERATE HERE THROUGH TWO COMPANIES STRATFORD CREDIT CORP AND HALEY CAPITAL CORP HAS ALSO CONTROLLED OR BEEN AFFILIATED WITH A CHAIN OF COMMERCIAL DEBTCOLLECTION COMPANIES THAT HAS BILKED DOZENS OF SMALL BUSINESSES OVER THE YEARS ACCORDING TO CIVIL COURT AND REGULATORY AGENCY RULINGS THE DIVERSIFIED INDICTMENT WAS HANDED DOWN LATE LAST MONTH AND FIRST REPORTED BY THE LONG ISLAND NY NEWSPAPER NEWSDAY LAST WEEK THE INDICTMENT ALLEGES THAT DIVERSIFIED AND ITS EXECUTIVES POCKETED THOUSANDS OF DOLLARS IN DEBTS COLLECTED ON BEHALF OF SMALL BUSINESSES BUT THE SUFFOLK COUNTY DISTRICT ATTORNEY'S OFFICE SAID FRIDAY THAT THE ACTUAL FIGURE IS PROVING TO BE MUCH HIGHER WE'RE NOW TALKING ABOUT ROUGHLY 1 MILLION IN FUNDS ALLEGEDLY STOLEN SAID NINA POZGAR DIRECTOR OF THE DISTRICT ATTORNEY'S WHITECOLLAR CRIME UNIT WHICH INVESTIGATED DIVERSIFIED FOR FOUR MONTHS AND THAT'S ONLY WHAT'S COME TO OUR ATTENTION SO FAR THE FIVE DIVERSIFIED EXECUTIVES NAMED IN THE INDICTMENT ARE MR LOWY CHARLES CHUGGERMAN SIDNEY FRIEDFERTIG DAVID RICHARDS AND MORRIS UNGER ACCORDING TO THE DISTRICT ATTORNEY'S OFFICE ALL OF THEM ALSO WORKED AT ONE TIME OR ANOTHER FOR TOWERS FINANCIAL THEY HAVE ALL PLEADED INNOCENT BUT FACE A MAXIMUM OF SEVEN YEARS IN PRISON IF FOUND GUILTY OF THE CHARGES AN ATTORNEY FOR MR UNGER DID NOT RETURN PHONE CALLS ATTORNEYS FOR THE FOUR OTHER EXECUTIVES DENY THE ALLEGATIONS CONTAINED IN THE INDICTMENT MR CHUGGERMAN WHO ALSO WAS A VICE PRESIDENT OF TOWERS HAS BEEN NAMED IN CIVIL SUITS AGAINST THAT COMPANY WE JOKINGLY SAY THAT ONE OUT OF EVERY TWO CIVIL SUITS FILED NAME MR CHUGGERMAN AS A DEFENDANT SAYS THE EXECUTIVE'S ATTORNEY JOHN CASE IN MIDJANUARY ALAN FRAADE AN ATTORNEY REPRESENTING DIVERSIFIED SENT A LETTER TO SMALL BUSINESSES OWED FUNDS BY THE COMPANY THE LETTER STATED THAT DIVERSIFIED HAS ADVISED US THAT IT RECENTLY CUT ITS OVERHEAD AND EXPENSES AND A NEW MANAGEMENT TEAM IS IN PLACE THE LETTER ASKED THE BUSINESSES TO APPROVE A FILING FOR PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE AND TO ACCEPT STOCK IN THE COMPANY IN LIEU OF RECEIVING THE MONEY OWED TO THEM BUT MANY OF THOSE COMPANIES NOW SAY THEY REGRET EVER DOING BUSINESS WITH DIVERSIFIED I CALLED AND CALLED EVERY DAY AND THEY TOLD ME NOT TO WORRY ABOUT IT SAYS JOSEPH LOMBARDI A COOWNER OF MAIN STREET LIGHTING & SUPPLY CO IN FLUSHING NY WHO SAYS DIVERSIFIED POCKETED 7500 IT HAD COLLECTED ON HIS BEHALF NEEDLESS TO SAY I STILL DON'T HAVE MY MONEY SEE RELATED LETTER LETTERS TO THE EDITOR TOO CLOSE FOR COMFORT WSJ APRIL 26 1994 9403280114 YY94 MM04 9404260063 940309 LEISURE & ARTS THEATER FIFTIES MUSICAL IS A CLEAN HIT BY EDWIN WILSON NEW YORK IN 1955 YOU COULD BET AGAINST THE DEVIL AND WIN THAT'S WHAT JOE BOYD DENNIS KELLY DID IN THE MUSICAL DAMN YANKEES JOE WAS AN AVID FAN OF THE HAPLESS WASHINGTON SENATORS BASEBALL TEAM WHICH OCCUPIED THE AMERICAN LEAGUE CELLAR YEAR AFTER YEAR THEIR CHIEF RIVALS WERE THE NEW YORK YANKEES AND SUCH PLAYERS AS YOGI BERRA MICKEY MANTLE AND WHITEY FORD IN ORDER TO DEFEAT THESE ODIOUS OPPONENTS JOE SIGNED A FAUSTIAN PACT WITH THE DEVIL IN THE PERSON OF A SUAVE CHARACTER NAMED APPLEGATE VICTOR GARBER IN A FLASH THE PAUNCHY MIDDLEAGE JOE IS CHANGED INTO A YOUTHFUL SLUGGER JOE HARDY JARROD EMICK WHO EASILY BRINGS HIS TEAM TO THE BRINK OF A PENNANT IN MOST OTHER VERSIONS OF THE FAUST LEGEND FROM CHRISTOPHER MARLOWE AND GOETHE ON DOWN THE VICTIM LOSES HIS SOUL TO THE DEVIL BUT DAMN YANKEES TAKES PLACE IN THE US OF THE MID50S SO JOE IS GIVEN AN ESCAPE CLAUSE CERTAINLY JOE HAS TO AGONIZE WILL HE HELP HIS BELOVED TEAM WIN THE WORLD SERIES OR RETURN TO HIS WIFE BUT THE ANSWER IS NEVER REALLY IN DOUBT APPLEGATE WILL NEVER OWN THE SOUL OF JOE BOYD WATCHING THE REVIVAL OF DAMN YANKEES AT THE MARQUIS THEATRE ONE RELISHES THE FAMILIAR TUNES OF RICHARD ADLER AND THE LATE JERRY ROSS BUT WHAT IS MOST STRIKING IS THE SHOW'S INNOCENCE IN THE OPENING NUMBER SIX MONTHS OUT OF EVERY YEAR A GROUP OF HUSBANDS IS SHOWN NEGLECTING THEIR WIVES THEIR SIN HOWEVER IS NOT A '90SSTYLE OFFENSE SUCH AS WIFE ABUSE OR SEXUAL HARASSMENT BUT THE RATHER BENIGN TRANSGRESSION OF SITTING GLUED TO THEIR TELEVISION SETS DURING BASEBALL SEASON ROOTING FOR THE ILLFATED SENATORS WHEN JOE SIGNS ON WITH APPLEGATE YOUNG JOE HARDY BEGINS BELTING THEM OUT OF THE PARK AND APPLEGATE ASSUMES HE WILL SOON CONTROL HIM BODY AND SOUL JOE HOWEVER HAS THE BAD HABIT OF DRIFTING BACK TO HIS OLD NEIGHBORHOOD LOOKING LONGINGLY FROM AFAR AT HIS LONELY BEWILDERED WIFE MEG LINDA STEPHENS IN DESPERATION APPLEGATE SUMMONS HIS MOST ALLURING TEMPTRESS LOLA BEBE NEUWIRTH TO SEDUCE HIM IN WHATEVER LOLA WANTS LOLA GETS SHE THROWS EVERYTHING SHE HAS AT HIM BUT THE STALWART JOE STANDS FIRM FINALLY IN THE LAST INNING OF THE GAME THAT WILL DECIDE THE PENNANT JOE CAN EITHER REMAIN WITH THE TEAM AND CARRY IT TO VICTORY OR FORGO HIS YOUTHFUL PROWESS AND JOIN HIS WIFE AS THE OLD JOE I WON'T TELL YOU HOW IT HAPPENS BUT IT IS NOT GIVING ANYTHING AWAY TO SAY THAT JOE AND HIS FANS HAVE IT BOTH WAYS THE REAL WINNER OF COURSE IS SOMETHING SO TAKEN FOR GRANTED IN THE 1950S THAT IT DID NOT NEED A LABEL FAMILY VALUES EVEN THE STATUS OF THE BALLPLAYERS COMES AS A SHOCK TO TODAY'S AUDIENCE THOUGH TEAM MEMBERS COULD BE MEDIA STARS THE IDEA OF MULTIMILLION DOLLAR CONTRACTS WAS BEYOND THEIR WILDEST IMAGININGS THIS IS THE FIRST BROADWAY REVIVAL OF DAMN YANKEES SINCE THE ORIGINAL PRODUCTION NEARLY 40 YEARS AGO THE BOOK BY THE WAY WAS BY DOUGLASS WALLOP AND GEORGE ABBOTT MR WALLOP DIED IN 1985 BUT MR ABBOTT IS STILL GOING STRONG AT 106 AND ATTENDED THE REVIVAL'S OPENING NIGHT THE WASHINGTON SENATORS HAVE LONG SINCE CEASED TO EXIST HAVING BEEN TRANSFORMED IN 1972 TO THE TEXAS RANGERS AND THE TEMPTATION WITH A NEW PRODUCTION WOULD BE TO UPDATE IT FOR THE MOST PART THOSE RESPONSIBLE FOR THE CURRENT VERSION HAVE WISELY RESISTED THIS THOUGH THEY OCCASIONALLY INTRODUCE AN ANACHRONISM WHICH STRIKES A DISCORDANT NOTE TWO NEW FEATURES ARE THE RICH UPBEAT ORCHESTRATIONS OF DOUGLAS BESTERMAN AND TOM FAY AND THE CHOREOGRAPHY OF ROB MARSHALL PARTICULARLY IN THE SEQUENCES WHERE THE BALLPLAYERS FIRST DEMONSTRATE THEIR INEPTNESS AND LATER WHERE THEY SHOW THEIR DETERMINATION IN YOU'VE GOT TO HAVE HEART MR MARSHALL INFUSES THE PROCEEDINGS WITH VIGOR AND ATHLETICISM AS WELL AS CONSIDERABLE WIT AS FOR THE PERFORMERS IN THE ROLE OF LOLA IT IS NOT EASY TO ERASE THE MEMORY OF GWEN VERDON AND THE DANCE ROUTINES THAT FIRST BROUGHT HER TOGETHER WITH CHOREOGRAPHER BOB FOSSE MS NEUWIRTH HOWEVER IN ADDITION TO HAVING BEEN A STAR OF THE TELEVISION SHOW CHEERS IS A SEASONED BROADWAY DANCER AND SHE BRINGS HER OWN BRAND OF VITALITY TO THE CHARACTER LITHE AND LIVELY SHE IS A FORMIDABLE FORCE IF NOT AN IRRESISTIBLE TEMPTRESS MR GARBER HAS MIXED SUCCESS AS APPLEGATE HE HAS TWO FLASHY MUSICAL NUMBERS ONE A SOLO AND THE OTHER A DUET WITH MS NEUWIRTH THAT EXTOL THE VIRTUES OF EVIL I USE THE TERM FLASHY ADVISEDLY BECAUSE HIS NUMBERS ARE LOADED WITH ACTUAL PYROTECHNICS THOUGH HE HANDLES THE COMIC MOMENTS WELL MR GARBER ALSO CONVEYS AN ARCHNESS AND SELFINVOLVEMENT THAT IS OUT OF KEY WITH THE REST OF THE PRODUCTION BY CONTRAST MR EMICK IS AN INGENUOUS APPEALING JOE WITH A POWERFUL SINGING VOICE ALSO EFFECTIVE ARE MR KELLY AND MS STEPHENS DIRECTOR JACK O'BRIEN KNOWS WHERE THE STRENGTHS OF THE PIECE ARE AND HE HAS EMPHASIZED THEM PARTICULARLY THE SIGNATURE SONG HEART NOT ONLY IS IT A CENTERPIECE OF ACT ONE IT BECOMES THE OCCASION FOR A FULLBLOWN CURTAIN CALL IN WHICH THE CAST APPEAR IN BRANDNEW COSTUMES CREATED JUST FOR THAT OCCASION DAMN YANKEES IS A TRIP BACK IN TIME NOT JUST TO AN ERA OF EVOCATIVE SHOW TUNES BUT TO AN ERA IN WHICH PEOPLE UNASHAMEDLY LOOKED AT WINNING AND LOSING AT RIGHT AND WRONG IN STRICTLY MORAL TERMS THE GOLDEN AGE OF MUSICAL COMEDY IS ALSO THE FOCUS OF THE CITY CENTER'S NEW SERIES OF CONCERT PRESENTATIONS OF SHOWS FROM THE PAST THE IDEA IS THAT FOR FOUR NIGHTS OF PERFORMANCES THEY CAN RECRUIT A STELLAR CAST THAT OTHERWISE COULD NOT BE BROUGHT TOGETHER THE PERFORMERS ARE ON STAGE HOLDING BOOKS IN THEIR HANDS AND THE STORY IS PRESENTED IN ABBREVIATED FORM BUT THE SCORE IS THERE NOT ONLY SUNG FULLOUT BUT BACKED BY A 30PIECE ORCHESTRA THE FIRST TWO HAVE BEEN FIORELLO AND ALLEGRO LADY IN THE DARK THE KURT WEILL/IRA GERSHWIN MUSICAL IS STILL TO COME FIORELLO IS A 1959 MUSICAL TALE ABOUT THE LIFE AND CAREER OF NEW YORK'S LEGENDARY MAYOR FIORELLO LAGUARDIA WITH AN ABSOLUTELY FIRSTRATE SCORE BY JERRY BOCK AND SHELDON HARNICK AND AN OUTSTANDING CAST IT WAS A DELIGHT FROM OVERTURE TO FINALE ALLEGRO A 1947 CHRONICLE ABOUT A SMALLTOWN DOCTOR WHO LOSES HIS WAY IN THE BIG CITY WAS LESS SUCCESSFUL BUT AFFORDED A RARE OPPORTUNITY TO ENJOY ONE OF RODGERS AND HAMMERSTEIN'S LITTLEKNOWN WORKS SEE RELATED LETTER LETTERS TO THE EDITOR FALSE SENATORS WSJ APRIL 26 1994 9403090003 YY94 MM04 9404260018 940330 ENVIRONMENT SALMON ADVOCATES WIN FIRST BIG CASE AGAINST THE GOVERNMENT BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL SCORE ONE FOR THE SALMON JUDGE MALCOLM F MARSH RULED IN FEDERAL COURT IN BOISE IDAHO THAT THE NATIONAL MARINE FISHERIES SERVICE THE US ARMY CORPS OF ENGINEERS AND OTHER GOVERNMENT AGENCIES RESPONSIBLE FOR RUNNING THE VAST NETWORK OF DAMS AND RESERVOIRS ON THE SNAKE AND COLUMBIA RIVERS WHICH TRAVERSE FOUR STATES IN THE NORTHWEST BROKE THE LAW THE AGENCIES PUSHED THROUGH A DAMOPERATING PLAN THAT THEY KNEW WOULD KILL MILLIONS OF SALMON WHOSE POPULATIONS ARE COLLAPSING THROUGHOUT THE PACIFIC NORTHWEST HE SAID THE RULING IS THE FIRST BIG COURTROOM VICTORY FOR ENVIRONMENTALISTS IN THE BATTLE OVER SALMON WHICH IS FAST BECOMING THE NATION'S MOST HIGHSTAKES AND CONTENTIOUS CONSERVATION FIGHT A SIMILAR RULING FAVORING THE SPOTTED OWL BEGAN A LONGRUNNING BATTLE THAT ENDED IN SEVERE RESTRICTIONS ON LOGGING IN FEDERAL FORESTS THE STAKES IN THE SALMON DISPUTE MAY BE EVEN LARGER BECAUSE IT AFFECTS THE DAM SYSTEM A PILLAR OF THE REGION'S ECONOMY THE DAMS PRODUCE CHEAP POWER AND IRRIGATION WATER BUT THEY MINCE SALMON BY THE MILLIONS AND ARE REGARDED AS THE MAIN CULPRIT IN THE FISH'S DIZZYING DECLINE ENVIRONMENTALISTS HAVE CALLED FOR CHANGES IN DAM OPERATIONS SUCH AS CUTTING BACK ON POWER PRODUCTION DURING SPAWNING SEASON BUT INDUSTRY AND POWER INTERESTS HAVE ALWAYS FIERCELY AND SUCCESSFULLY RESISTED THE BOISE CASE FOCUSED ON SALMON IN A SEGMENT OF THE SNAKE RIVER IN IDAHO BUT WILL REVERBERATE THROUGHOUT THE NORTHWEST IN THE RULING JUDGE MARSH SAID THAT THE FISHERIES SERVICE HAD ACTED ARBITRARILY AND CAPRICIOUSLY BY FINDING THAT THE DAMOPERATING PLAN POSED NO JEOPARDY TO SNAKE RIVER SALMON A KEY RULING BY THE AGENCY THAT ALLOWED THE DAMS IN THE SNAKE AND COLUMBIA TO OPERATE MUCH AS THEY ALWAYS HAD THAT RULING ALSO PREVENTS CERTAIN REQUIREMENTS OF THE ENDANGERED SPECIES ACT FROM KICKING IN THE AGENCY SIGNED OFF ON THE PLAN AND THE NO JEOPARDY FINDING DESPITE THE OBJECTIONS OF ITS OWN SCIENTISTS WHO HAD CONCLUDED THAT THE PLAN WOULD INDEED IMPERIL ALREADY WEAK SALMON RUNS THE JUDGE ALSO CRITICIZED THE AGENCIES FOR IGNORING SOME OF THE VERY ALTERNATIVES FAVORED BY ENVIRONMENTALISTS SUCH AS INCREASING RIVER FLOWS TO HELP YOUNG SALMON MAKE IT TO THE SEA HE SAID THE PROCESS BY WHICH THE FEDERAL AGENCIES DECIDED HOW THEY'LL RUN THE RIVER SYSTEMS IS SERIOUSLY SIGNIFICANTLY FLAWED BECAUSE IT IS TOO HEAVILY GEARED TOWARDS A STATUS QUO WHEN THE SITUATION LITERALLY CRIES OUT FOR A MAJOR OVERHAUL JUDGE MARSH ORDERED THE AGENCIES TO COME UP WITH A NEW PLAN WITHIN 60 DAYS THAT DOESN'T JEOPARDIZE SNAKE RIVER SALMON THE FISHERIES SERVICE DECLINED TO COMMENT AND THE OTHER AGENCIES INVOLVED COULDN'T BE REACHED TO COMMENT BUT SALMON ADVOCATES HAILED IT AS A TURNING POINT IN THE SALMON FIGHT IT RECOGNIZES THE FLAWS IN THE FEDERAL GOVERNMENT'S ATTEMPTS TO CONTINUE BUSINESS AS USUAL WHILE THE SALMON CONTINUE TO DECLINE TOWARD EXTINCTION SAID IDAHO GOV CECIL D ANDRUS WHO HAS BEEN AMONG THE LEADERS OF THE PROSALMON FORCES THE CASE HERE WAS BROUGHT ORIGINALLY BY IDAHO AT MR ANDRUS'S INSISTENCE MR ANDRUS AND OTHERS SEE JUDGE MARSH'S DECISION AS SIMILAR TO THE EARLY SPOTTED OWL CASES IN WHICH FEDERAL JUDGES IN WASHINGTON AND OREGON RULED THAT THE GOVERNMENT'S TIMBERMANAGEMENT PRACTICES WERE ILLEGAL ENVIRONMENTALISTS ULTIMATELY USED THOSE RULINGS TO WIN MAJOR CHANGES IN FEDERAL TIMBER POLICIES AND SALMON ADVOCATES HOPE FOR A SIMILAR OUTCOME NOW WE HAVE SOME LEGAL AMMUNITION THAT WE'VE LACKED IN THE PAST SAID LORRAINE BODI CODIRECTOR OF AMERICAN RIVERS' SEATTLE OFFICE BY ANY MEASURE THE SALMON COULD USE THE HELP SALMON RUNS IN THE PACIFIC NORTHWEST HAVE PLUNGED FROM 16 MILLION A FEW DECADES AGO TO ABOUT TWO MILLION NOW AND THIS SPRING'S COUNTS OF RETURNING SPAWNERS HAVE BEEN THE WORST EVER THE WEST'S SALMONFISHING INDUSTRY ONCE A MULTIBILLIONDOLLAR BUSINESS HAS BEEN BADLY DAMAGED ALTHOUGH US CONSUMERS STILL HAVE PLENTY OF SALMON AT CHEAP PRICES LARGELY BECAUSE OF IMPORTS FROM SALMON FARMS IN NORWAY CHILE AND ELSEWHERE SEE RELATED LETTER LETTERS TO THE EDITOR BUMPER CROPS OF WILD SALMON WSJ APRIL 26 1994 9403300108 YY94 MM04 9404260003 940330 OUT AND DOWN NEW MILITARY RETIREES TURN BITTER AS MANY CAN'T FIND A GOOD JOB FORCED INTO CIVILIAN LIFE THEY FACE INDIFFERENCE TO THEIR SERVICE SKILLS A WIDE GULF IN ATTITUDES BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL ORLANDO FLA ON AUG 24 1992 STAFF SGT GREGORY ENGLE'S HOUSE WAS FLATTENED BY HURRICANE ANDREW THE NEXT DAY HE SADLY TOOK AN INCENTIVE PAYMENT AND LEFT THE AIR FORCE A DECISION THAT HE HAD MADE MONTHS EARLIER BECAUSE HIS UNIT SEEMED LIKELY TO BE ELIMINATED BUT THE WORST WAS HIS SEARCH FOR A CIVILIAN JOB HE QUICKLY DISCOVERED THAT POTENTIAL EMPLOYERS DIDN'T MUCH CARE THAT HE HAD JUST COMPLETED 12 YEARS OF MILITARY SERVICE INCLUDING A STINT WITH OPERATION JUST CAUSE IN PANAMA THEY DIDN'T CARE THAT HE WAS A SEASONED DIESEL MECHANIC WHO HAD FIXED BOATS TESTED NEW EQUIPMENT AND TRAINED NICARAGUAN CONTRAS AT HOMESTEAD AIR FORCE BASE NEAR MIAMI LAST JUNE IN THE BEDROOM OF HIS MOBILE HOME MR ENGLE LIFTED A TAURUS 357 MAGNUM PISTOL TO HIS HEAD HE STOPPED WHEN HE HEARD HIS FOURYEAROLD DAUGHTER COMING HOME BUT HE REMAINS BITTER ABOUT HIS HARSH REENTRY INTO THE CIVILIAN WORLD WE DIDN'T EXPECT TO BE HANDED EVERYTHING ON A SILVER PLATTER HE SAYS BUT WE DIDN'T EXPECT TO RUN INTO BRICK WALLS EITHER FOR 18 MONTHS MR ENGLE LIKE MANY FORMER SERVICE PEOPLE RAN SMACK INTO AMERICA'S CORPORATE DOWNSIZING MANY THOUGH NOT ALL RECENTLY MUSTEREDOUT MEN AND WOMEN ARE FINDING THEMSELVES CONSCRIPTED INTO A HUGE ARMY OF THE UNEMPLOYED AND UNDEREMPLOYED MOSTLY CIVILIANS RANGING FROM PEOPLE DESPERATELY SEEKING THEIR FIRST JOB TO PEOPLE LAID OFF AFTER WORKING FOR ONE EMPLOYER FOR YEARS ALTHOUGH MANY EMPLOYERS ARE SQUEEZING DOWN THEIR WORK FORCES AS FAST AS POSSIBLE THE CONTRACTION IN THE MILITARY HAS BEEN ESPECIALLY SEVERE AMERICAN TELEPHONE & TELEGRAPH CO FOR EXAMPLE SPARKED HEADLINES LAST MONTH BY ANNOUNCING THAT IT MIGHT CUT 15000 JOBS OVER THE NEXT TWO YEARS MEANWHILE THE DEFENSE DEPARTMENT IS SHEDDING 11000 MILITARY AND CIVILIAN JOBS A MONTH IN 1987 SOME 22 MILLION PEOPLE WERE ON ACTIVE MILITARY DUTY TODAY FEWER THAN 17 MILLION ARE AND HUNDREDS OF THOUSANDS MORE JOBS ARE STILL TO BE CUT UNLESS PERHAPS A DETERIORATION IN THE INTERNATIONAL CLIMATE MAKES FURTHER SHRINKAGE SEEM DANGEROUS WITH THE END OF THE COLD WAR TENS OF THOUSANDS OF EXMILITARY MEN AND WOMEN ACROSS THE US ARE FACING A COLD EQUATION THEIR SUPPLY IS INCREASING AS DEMAND FOR THEM IS DROPPING LAST YEAR THE UNEMPLOYMENT RATE FOR VETERANS UNDER AGE 44 RAN WELL OVER ONE PERCENTAGE POINT HIGHER THAN THAT FOR THE GENERAL POPULATION MOREOVER THE DISCHARGED MILITARY PERSONNEL AREN'T JUST CHANGING JOBS BUT ARE LEAVING A TIGHTKNIT SOCIETY THAT PROVIDED HOUSING COMPANIONSHIP HEALTH CARE AND SCHOOLS IN ADDITION PEOPLE FORCED OUT OF THE MILITARY SHORT OF 20 YEARS DON'T GET A FULL PENSION PEOPLE WHO HAVE PUT IN AT LEAST 15 YEARS SOMETIMES QUALIFY FOR A REDUCED PENSION AND SOME OTHERS GET AN INCENTIVE PAYMENT TO LEAVE BEFORE THAT ADDING TO MANY VETS' BITTERNESS IS THE FACT THAT AFTER TWO DECADES WITHOUT A DRAFT ALMOST EVERYONE IN THE US MILITARY TODAY VOLUNTEERED SOME FOR JOBS IN WHICH THEY ROUTINELY RISKED THEIR LIVES SO NOW IN CONTRAST TO THE AFTERMATH OF WORLD WAR II AND THE KOREAN WAR THERE ARE NO CROWDS OF PEOPLE IN UNIFORM ANTSY TO DEMOBILIZE INSTEAD MANY ARE CLAMORING TO STAY IN AND FAILING MANY JOINED THE MILITARY BECAUSE THEY SAW IT AS A WAY OUT OF DYING SMALL TOWNS AND INTO THE MAINSTREAM OF MODERN LIFE SOME BRANCHES OF THE MILITARY SPELLED OPPORTUNITY FOR YOUNG PEOPLE WITH ONLY MODEST EDUCATION AND WITH FIRM POLICIES AGAINST RACIAL DISCRIMINATION ESPECIALLY OFFERED THE BEST DEAL AROUND FOR MANY BLACKS CURRENTLY 11 OF ARMY OFFICERS ARE BLACK AND THE BLACK DRILL SERGEANT PORTRAYED BY LOU GOSSET HAS BECOME A STOCK FIGURE IN US CULTURE THE MILITARY IS IN FACT AMERICA'S ONLY MAJOR INSTITUTION IN WHICH BLACKS ROUTINELY BOSS WHITES THE OPPORTUNITIES AREN'T BEING SHUT OFF COMPLETELY EVEN AS THE MILITARY WATCHES ROUGHLY 250000 LEAVE THIS YEAR IT WILL RECRUIT ABOUT 185000 NEW PEOPLE TO KEEP ITS FORCES YOUNG BUT A RECENT STUDY BY TWO ARMY OFFICERS TEACHING AT WEST POINT FOUND THAT THE SHRINKING OF THE MILITARY HAS REDUCED THE COMMITMENT TO THE SERVICE EVEN OF THE SURVIVOR OFFICERS WHO HAVE STAYED IN AND VETERANS' JOB WOES CAST DOUBT ON HOW MUCH THE MILITARY WILL CONTINUE TO SERVE AS A STURDY LADDER OF UPWARD MOBILITY FOR BLACK AMERICA LIKE MR ENGLE FORMER MILITARY PEOPLE EMERGE BLINKING AND A BIT DISBELIEVING INTO AN ECONOMY THAT DOESN'T SEEM TO NEED THEM AND A CULTURE THAT OFTEN DOESN'T SEEM TO UNDERSTAND THEM THAT'S A SHARP DEPARTURE FROM AMERICAN TRADITION VIETNAM EXCEPTED THE VETERANS OF MOST WARS FOUND A WARM RECEPTION IN THE CIVILIAN WORLD THE MAN IN THE GRAY FLANNEL SUIT THAT EMBLEM OF 1950S CORPORATE LIFE WAS IN SLOAN WILSON'S NOVEL HIMSELF A WORLD WAR II VETERAN WHOSE BOSS AND FATHER WERE VETERANS OF WORLD WAR I TODAY'S VETERANS RARELY FACE THE OPEN HOSTILITY THAT MET VIETNAM VETS WHO OFTEN BORE THE BRUNT OF AMERICAN UNHAPPINESS WITH THE WAR ITSELF WHAT TODAY'S EXMILITARY JOB SEEKERS FREQUENTLY ENCOUNTER IS SIMPLE INDIFFERENCE THAT INDIFFERENCE OR NONCOMPREHENSION OF CORPORATE AMERICA TOWARD THE MILITARY STRUCK RETIRED LT CMDR JOSEPH BATA WHEN A PRIVATESECTOR INTERVIEWER DISMISSED HIM BY SAYING ALL YOU HAVE IS MILITARY EXPERIENCE THE GAP SEPARATING THE MILITARY AND CORPORATE CULTURES HAS WIDENED AS COMPANIES HAVE DROPPED HIERARCHICAL MANAGEMENT STRUCTURES FOR LESS FORMAL TEAM APPROACHES IN THE PROCESS HIGHLY COMPUTERIZED COMPANIES HAVE SHED THE MIDDLEMANAGEMENT JOBS THAT RETIRING OFFICERS HISTORICALLY HAD SECURED AFTER LEAVING THE SERVICE IT'S NOT THAT THEY'RE BEING PICKED ON IT'S JUST THAT THERE'S NO DEMAND SAYS ALAN EWALT SENIOR VICE PRESIDENT FOR HUMAN RESOURCES AT NATIONAL MEDICAL ENTERPRISES INC IN SANTA MONICA CALIF COMPANIES ARE TAKING OUT THE KINDS OF JOBS THESE GUYS ASPIRE TO THERE'S A STRUCTURAL PROBLEM IN MIDDLEMANAGEMENT JOBS AND THE MILITARY GUYS ARE GETTING HIT BY THAT RIGHT BETWEEN THE EYES IN SHORT MOST CORPORATIONS SEEM TO WANT PEOPLE WITH DIFFERENT BACKGROUNDS THAN MILITARY PERSONNEL OFFER DAVID LEWIN DIRECTOR OF THE INSTITUTE OF INDUSTRIAL RELATIONS AT THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES NOTES AN INCREASING DISCONNECT BETWEEN THE WAY THE MILITARY IS ORGANIZED AND GETS ITS WORK DONE AND THE WAY BUSINESS IS ORGANIZED AND GETS ITS WORK DONE MOREOVER MANY VETS HAVE REACHED AN AGE SAY 40 OR SO AT WHICH ANYONE WHETHER FORMER MILITARY OR NOT IS LIKELY TO RUN INTO DIFFICULTY FINDING A JOB ESPECIALLY IN A NEW LINE OF WORK AND WHILE HIRING A VET WAS ONCE DEEMED PATRIOTIC DOING SO NOW IS OFTEN SEEN AS NEUTRAL AT BEST THE KEY IS DOES THE PERSON BRING SKILLS THAT WILL BE EFFECTIVE IN YOUR ENVIRONMENT SAYS JOHN ZIMMERMAN SENIOR VICE PRESIDENT FOR HUMAN RESOURCES AT MCI COMMUNICATIONS CORP WHETHER OR NOT THEY'VE BEEN IN THE MILITARY IS IRRELEVANT YET HE SAYS HE GOES OUT OF HIS WAY TO LOOK AT RETIRING OFFICERS ESPECIALLY MINORITIES AND WOMEN THE ONE INDUSTRY WHERE MILITARY PERSONNEL FIT IN QUICKLY THE DEFENSE SECTOR IS ITSELF LOSING AN ESTIMATED 20000 JOBS A MONTH IT USED TO BE IN THE GOOD TIMES MOST ANY OFFICER COULD GET A JOB IN THE DEFENSE INDUSTRY SAYS RETIRED AIR FORCE COL DOUG CARTER NOW A CAREER COUNSELOR AT THE RETIRED OFFICERS ASSOCIATION THAT'S JUST NOT AVAILABLE NOW INDEED AS DEFENSE COMPANIES SEARCH FOR NEW MARKETS THEY ARE LESS INCLINED TO OFFER ANY OPENINGS THEY DO HAVE TO MILITARY TYPES AND OTHER TRADITIONAL EMPLOYERS AREN'T DOING MUCH HIRING ONE IS THE NUCLEARPOWER INDUSTRY A NATURAL DESTINATION FOR VETERANS OF THE NAVY'S NUCLEARPROPULSION PROGRAM ANOTHER IS THE AIRLINES WHICH USED TO SNAP UP SQUADRONS OF FORMER MILITARY PILOTS MANY MILITARY RETIREES WHO DO FIND WORK ARE DISAPPOINTED BY THEIR DRASTICALLY REDUCED STATUS AFTER ONCE SERVING AS THE CHIEF ENGINEER ON A SHIP AND SUPERVISING 165 SAILORS LT CMDR BATA WAS SURPRISED TO BE OFFERED ONLY ENTRYLEVEL JOBS NOW HE IS CHIPPING PAINT IN A LOUISIANA BOATYARD AND PLANNING TO SHIP OUT AS AN ORDINARY DECKHAND I'M NOT LOOKING FORWARD TO IT THE 44YEAROLD VET SAYS I'VE ALREADY GOT A LOT OF SEA TIME SOME EXMILITARY JOB SEEKERS ADMIT THAT THEY DON'T MIX EASILY WITH THE CIVILIAN WORLD THEY ARE TRYING TO BREAK INTO CHIEF PETTY OFFICER LINDA NELSON PREPARING FOR POSTMILITARY LIFE RECENTLY TRIED SOCIALIZING WITH CIVILIANS AND DIDN'T LIKE IT YOU DON'T HAVE ANYTHING IN COMMON WITH THEM SHE SAYS AND UNDERSCORING HER DISTASTE FOR MANY CIVILIANS SHE ADDS THEY DON'T EVEN KNOW ENOUGH TO TALK HALF THE TIME MILITARY PEOPLE SAY THEY CAN'T ALWAYS UNDERSTAND WHAT MOTIVATES PEOPLE IN THE PRIVATE SECTOR I THINK THE GREATEST CULTURE SHOCK I'M GOING THROUGH RIGHT NOW IS I'M LOOKING FOR SOMETHING TO BELIEVE IN SAYS RETIRED NAVY CAPT ANTHONY MITCHELL LOOKING AROUND A ROOMFUL OF MILITARY RETIREES HE ADDS THERE'S NOT ONE OF US WHO WORKED FOR THE MONEY AND MR ENGLE THE FORMER AIR FORCE SERGEANT COMMENTS YOU GET OUT IN THE BUSINESS WORLD AND IT'S MONEY MONEY MONEY AND PEOPLE ARE DIRT THE MILITARY IS A LOT MORE PEOPLEORIENTED THESE DAYS THE GAP BETWEEN THE MILITARY RETIREE AND CORPORATE AMERICA MAY PARTLY REFLECT A GAP BETWEEN THE MILITARY AND THE PEOPLE WHO RUN THE NATION THE GOVERNING ELITE NO LONGER HAS A PERSONAL KNOWLEDGE OF WHAT MILITARY SERVICE IS ALL ABOUT WORRIES COL CHARLES DUNLAP AN AIR FORCE LAWYER WHO HAS STUDIED CIVILMILITARY RELATIONS IT'S NOT THAT THEY'RE ANTIMILITARY OR PACIFISTS THEY JUST DON'T HAVE AN UNDERSTANDING OF WHAT THE MILITARY IS ALL ABOUT THAT ISN'T JUST A GIBE AT THE CLINTON WHITE HOUSE WHICH HAS FEW STAFF MEMBERS WITH MILITARY EXPERIENCE IN 1969 TWOTHIRDS OF THE MEMBERS OF CONGRESS WERE VETERANS NOW TWOTHIRDS AREN'T IN CORPORATE LIFE TOO THERE IS A DWINDLING NUMBER OF CAPTAINS OF INDUSTRY WHO WERE ONCE CORPORALS IN THE MARINES THE GAP CARRIES DISTURBING IMPLICATIONS THE MILITARY COULD WELL BECOME INCREASINGLY ISOLATED FROM THE DEMOCRACY IT IS SUPPOSED TO PROTECT WILLIAM HAUSER A RETIRED ARMY COLONEL WHO WENT ON TO SPEND 12 YEARS IN EXECUTIVE DEVELOPMENT AT PFIZER INC SAYS THE UNRECEPTIVE ATTITUDE TOWARD THE MILITARY RISKS ENLARGING THE POOL OF DISAFFECTED MIDDLEAGED INTERRUPTEES WHO FEEL THAT AMERICA HAS TURNED AGAINST THEM AND WHO MAY BE DRAWN TO POLITICAL EXTREMISM NOT EVERY FORMER MILITARY OFFICER IS UNEMPLOYED AND DESPONDENT OF COURSE SOME ESPECIALLY JUNIOR OFFICERS WHO LEFT AFTER ONLY A DECADE OR SO IN THE SERVICE ARE FINDING JOBS AS SALESPEOPLE STOCKBROKERS AND SHIFT MANAGERS IN FASTFOOD RESTAURANTS AND WAREHOUSES ALSO THERE STILL ARE A FEW HOT AREAS SUCH AS ENVIRONMENTAL WORK ESPECIALLY CLEANING UP OLD MILITARY BASES MARRED BY FUEL SPILLS CHEMICAL DUMPS AND BURIED AMMUNITION AND SOME EXOFFICERS ARE HAPPY TO SWAP THE BURDEN OF COMMAND FOR A REDUCED STATION IN LIFE AFTER 27 YEARS OF BRINGING MY WORK HOME RETIRED COL JIM RIDENOUR SAYS I WAS HAPPY TO PUNCH A CLOCK AND LEAVE WORK HE NOW GOLFS DURING THE DAY AND WORKS AS A NIGHT SUPERVISOR IN A MARRIOTT HOTEL IN MELBOURNE FLA BUT MOST MILITARY RETIREES EXPERIENCE A JARRING REENTRY AND SOME ESPECIALLY DISLIKE THE BABY BOOMERS WHO NOW DO MUCH OF THE CORPORATE HIRING THE PEOPLE IN THE 35TO45YEAR BRACKET ARE PROBABLY THE WORST OFFENDERS RETIRED ARMY LT COL CHARLES FAURE SAYS IT'S ALMOST LIKE THEY CONSIDER US ALL BUMBLING BUFFOONS HANK JOHNSON A FORMER ARMY OFFICER WHO NOW RUNS A CORPORATE OUTPLACEMENT SERVICE COUNSELS MILITARY RETIREES THAT THE BEST STRATEGY FOR FINDING WORK IS TO LOCATE ONE OF US ON THE OTHER SIDE OF THE TABLE SUCCESSFUL JOB SEEKERS AGREE ACCORDING TO RETIRED ARMY LT COL ED ETTNER JR A FORMER CHEMICALDEFENSE OFFICER NOW WORKING AS A DISTRIBUTOR OF ENVIRONMENTAL AND HEALTHCARE EQUIPMENT ABOUT A THIRD OF THE PEOPLE AT HIS NEW EMPLOYER NATIONAL SAFETY ASSOCIATES ARE EXMILITARY THIS STRATEGY MAY EVEN WORK FOR MR ENGLE HE FOUND A JOB STRAIGHT OUT OF THE MILITARY WORKING AS A DIESEL MECHANIC IN NORTH CAROLINA BUT LEFT AFTER THE COMPANY LACKING WORK CUT HIM BACK TO 8 AN HOUR AND A 10HOUR WEEK MOVING TO FLORIDA HE APPLIED TO THE ORANGE COUNTY SHERIFF'S OFFICE TO BRING IN SOME CASH AND MAINTAIN HIS SANITY HE EVEN TRIED STANDUP COMEDY MAKING 200 FOR FOUR SHOWS AT A RADISSON HOTEL IN MACON GA NOW HE HAS SOMETHING TWO WEEKS AGO HE WAS HIRED BY AN ARMY VET TO SELL MOTORBOATS IT'S JUST ON COMMISSION HE SAYS BUT THERE IS A GLEE IN HIS VOICE AS HE SAYS IT HE'S MAKING 400 A WEEK AND SOUNDS LIKE A NEW MAN SEE RELATED LETTER LETTERS TO THE EDITOR VETERANS SHOULD MAKE GOOD ENTREPRENEURS WSJ APRIL 26 1994 9403300008 YY94 MM04 9404250166 940425 TRAVEL AIRLINES WILL DEVALUE FREQUENTFLIER MILES NEXT YEAR BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL SOON A MILE WON'T GO AS FAR AS IT ONCE DID LIKE ANY CURRENCY FREQUENTFLIER MILES CAN FLUCTUATE IN VALUE UNFORTUNATELY FOR TRAVELERS THEIR MILES WILL START DEPRECIATING NEXT YEAR WHEN MOST US AIRLINES WILL INCREASE THE NUMBER OF MILES THEY CHARGE FOR FREE TRAVEL AFFECTING TRAVEL TO DESTINATIONS FROM SAN JUAN TO SINGAPORE THE UPSHOT FLIERS WHO NORMALLY STOCKPILE THEIR MILES WILL BE TRADING THEM IN THIS YEAR AND WITH AIRLINE CAPACITY SHRINKING SLIGHTLY THE SKIRMISH FOR FREE SEATS PARTICULARLY THIS SUMMER COULD BE UNUSUALLY FIERCE WHILE AIRLINES NOTE THAT THESE CHANGES ARE THE FIRST IN MANY YEARS THE RESTRUCTURED AWARD CHARTS STILL SCRAMBLE THE CALCULATIONS MANY FLIERS MAKE TO DETERMINE THE VALUE OF THEIR MILES FOR EXAMPLE CONTINENTAL AIRLINES ALLOWS ITS MEMBERS TO CASH IN 35000 MILES FOR TWO FREE ROUNDTRIP DOMESTIC COACH TICKETS NORMALLY 20000 MILES ARE REQUIRED FOR A TICKET A CUSTOMER WITH 105000 MILES COULD RECEIVE SIX TICKETS WITH THE AVERAGE TICKET COSTING ABOUT 400 THE MILES WOULD THEN BE WORTH 2400 BUT CONTINENTAL IS ELIMINATING ITS TWOTICKET OFFER NEXT YEAR PASSENGERS CAN RECEIVE ONE COACH TICKET FOR 25000 MILES OR WITH 100000 MILES FOUR TICKETS WORTH 1600 A 33 DECLINE IN VALUE CONTINENTAL SAYS IT'S ELIMINATING THE TWOTICKET SPECIAL BECAUSE IT NOW OFFERS TWOFORONE TICKET DEALS ON ITS PEANUT FARES AFFECTING 50 OF ITS DOMESTIC ROUTE STRUCTURE WHILE CUSTOMERS WILL HAVE TO SPEND 5000 MORE MILES TO GET ONE TICKET CONTINENTAL SAYS IT'S DOING AWAY WITH MANY RESTRICTIONS REDUCING THE NUMBER OF BLACKOUT DAYS FOR EXAMPLE ON THOSE AWARDS PEOPLE WHO WANT TO DUMP MILES THIS YEAR BUT DON'T HAVE TIME TO TRAVEL SHOULDN'T PANIC FLIERS WHO EXCHANGE MILES FOR AN AWARD CERTIFICATE HAVE A FULL YEAR BEFORE THEY HAVE TO TRADE IN THEIR CERTIFICATE FOR TICKETS THEN THEY HAVE ANOTHER YEAR TO TAKE THEIR TRIP EVERYONE SHOULD CASH IN MORE MILES THAN THEY THINK THEY CAN USE JUST TO PROTECT THEMSELVES FROM THE INCREASE SAYS ROBERT FINKEN A DALLAS SALESMAN WHO WILL BE CASHING IN SUBSTANTIAL CREDITS ON AMERICAN AIRLINES AND CONTINENTAL AIRLINES SEVERAL FACTORS ARE FORCING AIRLINES TO MODIFY THE PROGRAMS WHICH BEGAN IN 1981 TO BUILD BRAND LOYALTY AIRLINES CARRY UNREDEEMED MILES AS LIABILITIES AND THOSE LIABILITIES HAVE SKYROCKETED AS CARRIERS HAVE MADE MILES AVAILABLE THROUGH MORE AND MORE PARTNERS SUCH AS TELEPHONE AND CREDITCARD COMPANIES AMERICAN SAYS THAT LAST YEAR ALONE ITS FREQUENTFLIER LIABILITIES INCREASED 33 TO 380 MILLION IN THE PAST THREE YEARS THE NUMBER OF AMERICAN PASSENGERS FLYING FOR FREE HAS ALMOST DOUBLED TO 95 OF ALL CUSTOMERS THE AMR CORP UNIT CAN SLOW THOSE GROWTH RATES BY FORCING TRAVELERS TO SPEND MORE MILES FOR THEIR FREE TRIPS IN ADDITION AMERICAN SAYS THE CHANGES STEM FROM HIGHER TRANSPORTATION COSTS AND A DESIRE TO MATCH SIMILAR MOVES BY UAL CORP'S UNITED AIRLINES IN SOME INSTANCES THE NEW AWARDS SCHEDULES WILL BENEFIT TRAVELERS UNITED CURRENTLY CHARGES 75000 MILES FOR A ROUNDTRIP BUSINESSCLASS TICKET TO EUROPE NEXT YEAR IT WILL CHARGE 80000 MILES FOR THE SAME TICKET BUT WILL ALSO OFFER TWO FOR ONLY 140000 MILES A 7 REDUCTION FROM THE CURRENT COST OF 150000 MILES FOR TWO WITH BILLIONS OF MILES OUTSTANDING SOME INDUSTRY OBSERVERS BELIEVE INCREMENTAL AWARD CHANGES WILL HAVE LITTLE IMPACT ON AIRLINE LIABILITIES IF YOU CHIP AWAY AT A MOUNTAIN EVERY DAY AT THE END OF THE YEAR YOU STILL HAVE A MOUNTAIN SAYS JOE MAMMANO CONTINENTAL'S FORMER DIRECTOR OF MARKETING PROGRAMS HE BELIEVES THAT RAISING MILEAGE REDEMPTION LEVELS WILL HELP RETURN THE PROGRAMS TO THEIR ORIGINAL INTENT REWARDING THE TRUE FREQUENT FLIER 9404250165 940425 AUTOMATIC DATA WILL POST GAINS FOR 4TH QUARTER BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JOSH S WESTON CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF AUTOMATIC DATA PROCESSING INC ISN'T CONTENT FOR THE COMPANY MERELY TO BE THE ONE OF NATION'S LARGEST DATA PROCESSORS PERHAPS THAT'S ONE REASON HE IS QUITE POSITIVE THE CURRENT FISCAL FOURTH QUARTER WILL SHOW DOUBLEDIGIT GROWTH IN EARNINGS FROM A YEAR AGO AND THAT THE FULL YEAR WILL BE UP CLOSE TO 15 THE COMPANY HAS HAD DOUBLEDIGIT GROWTH IN EARNINGS IN ALL 33 YEARS AS A PUBLIC CONCERN OUR BIGGEST CHALLENGE IS AN INTERNAL CHALLENGE BEING SO PLEASED WITH WHAT WE ARE MR WESTON SAID IN AN INTERVIEW EVEN AS HE PROFESSES THE COMPANY'S LEADERSHIP POSITION IN EACH OF ITS FOUR MAIN BUSINESSES EMPLOYER SERVICES BROKERAGE SERVICES PROVIDING AUTO CLAIMS DATA AND PROVIDING DATA TO AUTO DEALERS AND MAKERS HE SAID THERE IS STILL SUBSTANTIAL OPPORTUNITY TO ACQUIRE NEW CLIENTS IN ALL OF THEM NO WAY HAVE WE FULLY PENETRATED OUR MARKETS HE ADDED ADP'S LARGEST BUSINESS EMPLOYER SERVICES HANDLES THE PAYROLL FOR 17 MILLION PEOPLE AT 250000 EMPLOYERS IT ALSO FILES QUARTERLY EMPLOYER TAX RETURNS AND HANDLES CORRESPONDENCE AND MOVEMENT OF FUNDS TO VARIOUS GOVERNMENTS FOR ITS CUSTOMERS WITH NEARLY 15 BILLION IN ANNUAL REVENUE EMPLOYER SERVICES ACCOUNTS FOR ABOUT 60 OF ADP'S TOTAL THE BROKERAGE SERVICES GROUP PERFORMS BACKOFFICE SERVICES SUCH AS ACCOUNTING AND TRANSMITTING ORDERS FROM A BROKERAGE FIRM TO THE FLOOR OF AN EXCHANGE THE THIRD BUSINESS SERVES AUTO DEALERS AND MAKERS WITH TRADITIONAL ACCOUNTING SERVICES AS WELL AS TRACKING THE DEMOGRAPHICS AND DESIRES OF PROSPECTIVE CUSTOMERS AND ASSISTING IN MAILINGS ON SERVICE REMINDERS TO CUSTOMERS LASTLY ADP HAS A CLAIMSSOLUTIONS BUSINESS THAT PROVIDES INFORMATION TO AUTO INSURANCE CLAIMS ADJUSTERS ON THE REPLACEMENT VALUE OF CARS THAT HAVE BEEN IN ACCIDENTS MR WESTON SAID EVERY ONE OF ADP'S BUSINESSES IS EXPANDING EXPLAINING THE EXPECTED STRONG PERFORMANCE FOR THE FOURTH QUARTER AND YEAR ENDING JUNE 30 BECAUSE OF HEAVY ACTIVITY ON WALL STREET THE BROKERAGE SERVICES GROUP IS EXPANDING THE MOST RAPIDLY OF ANY GROUP IN THE CURRENT QUARTER IN THE YEARAGO FOURTH QUARTER ROSELAND NJBASED ADP EARNED 797 MILLION OR 56 CENTS A SHARE ON REVENUE OF 5966 MILLION EARNINGS IN THE 1993 YEAR TOTALED 2942 MILLION OR 208 A SHARE ON REVENUE OF 222 BILLION MR WESTON ALSO EXPECTS REVENUE IN THE QUARTER AND YEAR TO ADVANCE IN THE DOUBLE DIGITS 9404250164 940425 LEISURE & ARTS BOOKSHELF LIFE AND LOVE IN GREENWICH VILLAGE BY RICHARD LOCKE IN THE BEGINNING 40 YEARS AGO GRACE PALEY FOUND A VOICE AND LISTENING CLOSELY AND THINKING HARD SHE WROTE THE FIRST OF HER 45 NOW COLLECTED STORIES FARRAR STRAUS & GIROUX 386 PAGES 2750 THAT STORY GOODBYE AND GOOD LUCK IS STILL A GREAT WAY TO BEGIN I WAS POPULAR IN CERTAIN CIRCLES SAYS AUNT ROSE I WASN'T NO THINNER THEN ONLY MORE STATIONARY IN THE FLESH BOASTFUL COMPETITIVE ADROITLY LINKING MIND AND BODY LIBERTY AND WIT THIS BITTERSWEET AND BRASSY DAME WHO DECIDED TO LIVE FOR LOVE AND PAYS THE PRICE WITHOUT RANCOR OR SELFPITY SURPRISINGLY GETS HER MAN IN THE END WHEN SHE'S BECOME A LADY WHAT THEY CALL FAT AND FIFTY SO LOVE CONQUERS ALL GOOD LUCK MOST OF THE WOMEN IN GRACE PALEY'S STORIES ARE SINGLE MOTHERS ABANDONED BY CHEERFULLY FICKLE FECKLESS CHARMERS WHOM THEY STILL WARM TO BUT DESPITE THEIR STREETWISE JOKES THE COZY SEX AND ANGRY TEARS THESE WOMEN ARE SELDOM VICTIMS THEY'RE MUCH TOO PASSIONATELY QUICK AND PROUD TOO RICH IN INTELLIGENCE AND FRIENDSHIP TOO BUOYANT IN BED TOO EXULTING IN THEIR CHILDREN AND TOO EARNEST IN THEIR EXASPERATED LOVE FOR THEIR AGING PARENTS TO BE LESS THAN HEROIC WHAT MAKES THEM EVEN LARGER IS THE BRAVE CONTINUITY OF THEIR EXPANDING THOUGHTS AND FEELINGS THEIR NATURAL SELFEXTENSION FROM PRIVATE LIFE TO PUBLIC ACTION THEIR MOVEMENT FROM SELF TO SOCIETY FROM FAMILY MATTERS AND NEIGHBORHOOD CONCERNS TO POLITICS THESE POLITICS ARE RECOGNIZABLY GREENWICH VILLAGE FEMINIST/ANARCHIST/PACIFIST/ECOLOGIST BUT IDEOLOGICAL SERMONS AND STEREOTYPES ARE UTTERLY ABSENT FROM THESE TEXTS POLITICS HAVE BEEN TRANSFORMED INTO LITERATURE BY THE TRIUMPHANT IDIOSYNCRASY OF MS PALEY'S VOICES URBAN AMERICAN RUSSIANJEWISH IRISH BLACK AND BY THE EXTREME COMPRESSION OF HER STYLE AND STRUCTURE TAKE THE OPENING OF WANTS I SAW MY EXHUSBAND IN THE STREET I WAS SITTING ON THE STEPS OF THE NEW LIBRARY HELLO MY LIFE I SAID WE HAD ONCE BEEN MARRIED FOR TWENTYSEVEN YEARS SO I FELT JUSTIFIED HE SAID WHAT WHAT LIFE NO LIFE OF MINE I SAID OK I DON'T ARGUE WHEN THERE'S REAL DISAGREEMENT I GOT UP AND WENT INTO THE LIBRARY TO SEE HOW MUCH I OWED THEM HERE LARGE QUESTIONS OF TIME MEMORY PRIVATE LIFE AND SOCIAL DUTY ANGER GRATITUDE SEX SELFASSERTION AND THE REFUGE AND RESOURCES OF CULTURAL INSTITUTIONS AND TRADITIONS ARE SET IN RAPID MOTION EVEN MORE SPECTACULAR IS THE OPENING OF FAITH IN A TREE JUST WHEN I MOST NEEDED IMPORTANT CONVERSATION A SNIFF OF THE MANWIDE WORLD THAT IS AT LEAST ONE BRAINY COMPANION WHO COULD TRANSLATE MY FRIENDLY LANGUAGE INTO HIS TONGUE OF UNDYING CARNAL LOVE I WAS FORCED TO LOUNGE IN OUR NEIGHBORHOOD PARK SURROUNDED BY CHILDREN SET IN A SUNNY SEXY PLAYGROUND IN WASHINGTON SQUARE PARK THE STORY TRACES THE NARRATOR'S TRANSFORMATION FROM PRIVATE SORROW TO PUBLIC AFFIRMATION FROM PASSIVE WIT TO ACTIVE WISDOM THROUGH THE MORAL OUTRAGE OF HER NINEYEAROLD SON WHO WRITES AN ANTIVIETNAM WAR MESSAGE ON THE NEAR BLACKTOP IN PINK FLAMINGO CHALK IN LETTERS FIFTEEN FEET HIGH SO THE ENTIRE SATURDAY WALKING WORLD COULD SEE LANGUAGE IS GESTURE ART AND POLITICS ARE CONJOINED PERHAPS THE MOST EXTRAORDINARY EXAMPLE OF MS PALEY'S ART IS THE STORY A CONVERSATION WITH MY FATHER WHICH BEGINS MY FATHER IS EIGHTYSIX YEARS OLD AND IN BED HIS HEART THAT BLOODY MOTOR IS EQUALLY OLD AND WILL NOT DO CERTAIN JOBS ANYMORE IT STILL FLOODS HIS HEAD WITH BRAINY LIGHT BUT IT WON'T LET HIS LEGS CARRY THE WEIGHT OF HIS BODY AROUND THE HOUSE DESPITE MY METAPHORS THIS MUSCLE FAILURE IS NOT DUE TO HIS OLD HEART HE SAYS BUT TO A POTASSIUM SHORTAGE SITTING ON ONE PILLOW LEANING ON THREE HE OFFERS LASTMINUTE ADVICE AND MAKES A REQUEST HERE WITH COMPLETE SELFCONFIDENCE AND MASTERY MS PALEY MOVES AN EVOLVING SELFCRITICAL MORAL AND AESTHETIC DEBATE TOWARD A CLIMAX IN THE PARADOXICAL PHRASE THE OPEN DESTINY OF LIFE THIS SELFCONTRADICTION EXPRESSES A WISH FOR BOTH ABSOLUTE SPONTANEOUS FREEDOM AND SECURE TRANSCENDENT FORM FOR BOTH MODERN INDETERMINACY AND TRADITIONAL DIVINE ORDER A WISH THAT WELLFORMED WORDS MIGHT HAVE THE POWER TO CHANGE PHYSICAL REALITY TO ASSURE ENDLESS LOVING INTERGENERATIONAL DIALOGUES TO CONQUER TIME AND DEATH THESE 45 STORIES OF MEN AND WOMEN AT LOVE IN GREENWICH VILLAGE SINCE THE 1950S MAY NOT BE ABLE TO DO ALL THAT BUT THEY HAVE CERTAINLY CHANGED CONTEMPORARY AMERICAN LITERATURE IN WAYS THAT ENLARGE AND ENLIVEN US ALL 9404250163 940425 CORRECTIONS & AMPLIFICATIONS THE HUNTINGTON HOTEL WHICH IS RUN BY RITZCARLTON HOTEL CO IS IN PASADENA CALIF AN ARTICLE AND PHOTOGRAPH ON FRIDAY INCORRECTLY SAID THE HOTEL WAS IN HUNTINGTON CALIF ALLIEDSIGNAL INC EARNED 169 MILLION OR 60 CENTS A SHARE IN THE FIRST QUARTER AN ARTICLE FRIDAY MISSTATED THE PERSHARE FIGURE AS 51 CENTS FEDERAL OUTLAYS IN THE SIX MONTHS ENDED MARCH 31 1994 TOTALED 72682 BILLION THE TREASURY REPORTED A TABLE ACCOMPANYING AN ARTICLE FRIDAY ABOUT THE GOVERNMENT'S BUDGET DEFICIT INCORRECTLY GAVE THE OUTLAY FIGURE AS 76282 BILLION 9404250162 940425 LOANS BY UK BANKS AND BUILDING SOCIETIES SHOW STRONG INCREASE SPECIAL TO THE WALL STREET JOURNAL LONDON FURTHER EVIDENCE THAT CONSUMER CONFIDENCE IS POWERING AHEAD DESPITE THE IMPOSITION OF HIGHER TAXES EARLIER THIS MONTH EMERGED WITH FIGURES SHOWING A STRONG RISE IN BANK AND BUILDINGSOCIETY LENDING THE DATA WAS THE LATEST BIT OF GOOD NEWS ON THE BRITISH ECONOMY AND APPEARED TO RULE OUT AN EARLY CUT IN INTEREST RATES THE PESSIMISM ABOUT THE TAX INCREASES HAS REALLY BEEN OVERDONE SAID JOHN MARSLAND UNITED KINGDOM ECONOMIST AT UBS LTD IN LONDON ANDREW MILLIGAN CHIEF ECONOMIST AT NEW JAPAN SECURITIES IN LONDON SAID THERE WERE NO SIGNS THAT THE TAX INCREASES HAVE YET TO CAUSE A SQUEEZE ON CONSUMER SPENDING GROSS MORTGAGE LENDING BY UK BUILDING SOCIETIES ROSE TO 314 BILLION 468 BILLION IN MARCH FROM 224 BILLION IN FEBRUARY NET NEWLOAN COMMITMENTS OR MORTGAGES PROMISED ROSE TO 375 BILLION FROM 293 BILLION FIGURES RELEASED BY THE BUILDING SOCIETIES ASSOCIATION OR BSA SHOW THOSE FIGURES COINCIDED WITH BRITISH BANKERS ASSOCIATION OR BBA DATA SHOWING THAT STERLING LENDING TO THE UK PRIVATE SECTOR BY THE MAJOR BRITISH BANKS SURGED TO 305 BILLION FROM 935 MILLION IN FEBRUARY ADRIAN COLES DIRECTOR GENERAL OF THE BSA SAID THE RISE IN MORTGAGE LENDING DURING MARCH WAS FURTHER EVIDENCE OF A RECOVERY IN HOUSING MARKET ACTIVITY WITH ALL THE MAJOR LENDING INDICATORS POSTING STRONG INCREASES BOTH ON THE PREVIOUS MONTH AND THE YEAR EARLIER THE FIGURES ALSO SHOW HOWEVER THAT BUILDING SOCIETIES SUFFERED ANOTHER HEMORRHAGE OF FUNDS DURING MARCH MORE THAN 650 MILLION DRAINED OUT OF BUILDINGSOCIETY ACCOUNTS FOLLOWING AN OUTFLOW OF OVER 400 MILLION IN FEBRUARY LARGELY AS A RESULT OF SAVERS WITHDRAWING FUNDS TO PAY GAS AND ELECTRICITY BILLS TO BEAT THE APRIL 1 DEADLINE FOR THE TAX ON DOMESTIC FUEL 9404250161 940425 AS RUSSIA EVOLVES ITS REGIONS GAIN CLOUT INVESTORS FOLLOWING THE SHIFT OUT OF MOSCOW STAND TO BENEFIT BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL OUTSIDE NIKOLAI VLASOV'S OFFICE LIES THE TOWN OF NARYAN MAR POPULATION 21000 PACE DECIDEDLY SLEEPY BUT OUTSIDE NARYAN MAR LIES BILLIONS OF DOLLARS OF OIL AND GAS AND MR VLASOV HOLDS THE KEY THE CENTRAL GOVERNMENT GIVES HIS OFFICE A QUOTA FOR OIL SALES AND WE DISTRIBUTE IT SAID THE CHIEF ADMINISTRATOR OF A SECTION OF WESTERN SIBERIA REGION KNOWN AS THE NENETSK AUTONOMOUS OKRUG A FOREIGN BUSINESSMAN NEED ONLY COME HERE FOR YEARS DOING BUSINESS IN RUSSIA WAS A MATTER OF FINDING THE RIGHT BUREAUCRAT IN MOSCOW TO OPEN THE DOORS AND SIGN THE FORMS BUT SINCE THE COLLAPSE OF THE SOVIET UNION IN 1991 RUSSIA HAS BEEN STRAINING TO HOLD ITSELF TOGETHER AS DOZENS OF INTERNAL REGIONS AND REPUBLICS SEEK POLITICAL AND ECONOMIC AUTONOMY THIS MEANS THAT ECONOMICREFORM PROGRAMS CAREFULLY DESIGNED AND DEBATED IN MOSCOW MAY BE HARDLY RECOGNIZABLE BEYOND THE KREMLIN'S REDBRICK WALLS AND FOREIGN BUSINESSES MAY FIND THAT SOME OF THE BEST OPPORTUNITIES ARE TO BE FOUND WITH THE LIKES OF MR VLASOV WELL BEYOND THE FAMILIAR WESTERNIZED OFFICES OF MOSCOW AND ST PETERSBURG NOWADAYS RUSSIA SHOULD BE VIEWED NOT AS A UNIFIED WHOLE BUT AS A COLLECTION OF HETEROGENEOUS REGIONS WHICH ARE INCREASINGLY ASSERTIVE OF THEIR ECONOMIC RIGHTS SAID SERGEI BRAGINSKY A CONSULTANT AT SALOMON BROTHERS INC IN TOKYO WHO RECENTLY COMPLETED A MAJOR STUDY OF RUSSIA'S REGIONS SALOMON BROTHERS RECOMMENDS THAT FOREIGN INVESTORS TAKE A REGIONAL APPROACH FOR INSTANCE COMPANIES INTERESTED IN PETROCHEMICAL PRODUCTION OR OIL REFINING WOULD DO WELL TO CONSIDER THAT SUPPLIES COST ALMOST 50 LESS IN THE URAL AND LOWER VOLGA REGIONS THAN ELSEWHERE IN RUSSIA FOR TECHNOLOGY MANUFACTURING CENTRAL RUSSIA THE NORTHWEST AND THE TWO VOLGA REGIONS BOAST WELLEDUCATED WORKERS AND WAGES ARE WELL BELOW THE WEST'S EXPERIENCED BUSINESSES ALREADY THINK REGIONALLY AND SOME FIND IT ESSENTIAL TO FOSTER STRONG TIES AT BOTH CENTRAL AND REGIONAL LEVELS ESPECIALLY FOR RAW MATERIALS OR STRATEGIC RESOURCES SECTORS WHERE THE CENTER STILL RETAINS CERTAIN CONTROLS DUPONT CO'S CONOCO INTERNATIONAL PETROLEUM CO WHICH IS WORKING ON A 370 MILLION OILFIELDDEVELOPMENT PROJECT IN THE NENETSK OKRUG HAS BUILT RELATIONSHIPS WITH MOSCOW OFFICIALS AS WELL AS THOSE OF THE ARKHANGELSK OBLAST THE LARGER TERRITORY OF WHICH THE NENETSK OKRUG IS A PART THERE'S ALWAYS DISCUSSION SHALL WE SAY GOING ON BETWEEN THE FEDERAL AND LOCAL GOVERNMENT SAID CONOCO VICE PRESIDENT JAMES TILLEY IN MOSCOW WE'VE ESTABLISHED GOOD RELATIONS WITH PEOPLE IN BOTH GOVERNMENTS SO THAT EVERYONE KNOWS WHO'S DOING WHAT IN SOME CASES IT IS EASIER TO RESOLVE PROBLEMS IN THE PROVINCES THAN IT WOULD BE IN THE CENTER A LOT OF AMERICANS ARE DECIDING TO LOOK OUTSIDE THE CENTER BECAUSE THEY THINK THEY CAN GET THINGS DONE MORE EASILY WITH LESS BUREAUCRACY SAID DANIEL STEIN A REGIONAL DIRECTOR FOR THE US TRADE AND DEVELOPMENT AGENCY WHICH FUNDS FEASIBILITY STUDIES FOR US FIRMS WITH ENTERPRISES IN DOZENS OF REGIONS EQUALLY IMPORTANT AS COST ANALYSIS IS AN UNDERSTANDING OF HOW DIFFERENT REGIONS' LEADERS AND RESIDENTS RESPOND TO ECONOMIC REFORM AND FOREIGN INVESTMENT POLLS BY THE RUSSIAN CENTER FOR PUBLIC OPINION AND MARKET RESEARCH TAKEN LATE LAST YEAR SHOWED FOR INSTANCE STRONG SUPPORT FOR REFORM IN THE MOSCOW AREA WESTERN SIBERIA AND THE NORTHWEST THE WEAKEST SUPPORT WAS FOUND IN THE SARATOV AREA OF THE CENTRAL VOLGA REGION CONFIDENCE IN THE FEDERAL GOVERNMENT'S LEADERSHIP ALSO VARIED BY REGION ECONOMICS ALSO INFLUENCES ATTITUDES TOWARD AUTONOMY REGIONS DEPENDENT ON RAW MATERIALS GENERALLY WANT MORE AUTONOMY BECAUSE THEY THINK IT MEANS MORE MONEY FOR THEM AREAS RICH IN HIGHTECHNOLOGY INDUSTRIES FAVOR A CENTRALIZED STATE BECAUSE THEY NEED A SHARE OF REVENUE FROM THE EXPORT OF RAW MATERIALS TO PROMOTE THEIR OWN PRODUCTS ABROAD THEN THERE ARE HISTORICAL AND ETHNIC TENSIONS RUSSIA CONTAINS 89 INTERNAL TERRITORIES AMONG THEM ARE 21 ETHNICALLY DEFINED REPUBLICS AS WELL AS OTHER ETHNIC SUBDIVISIONS THE STRUCTURES DATE IN PART FROM THE 1920S BOLSHEVIK POLICY OF GRANTING NOMINAL SELFDETERMINATION TO NUMEROUS CAPTIVE NATIONS IN PRACTICE PARTICULARLY UNDER STALIN BOUNDARIES WERE DRAWN AND ETHNIC TENSIONS USED AS A MEANS OF CONTROL THIS AND OTHER POLICIES LEFT A LEGACY OF REPRESSION THAT HAS YET TO BE RESOLVED AFTER THE SOVIET UNION COLLAPSED FISSURES WITHIN RUSSIA BROADENED AND LEADERS BEGAN TO FEAR THE BREAKUP OF THEIR OWN NEWLY INDEPENDENT NATION IN 1992 MOST OF RUSSIA'S INTERNAL TERRITORIES SIGNED A FEDERATION TREATY THAT DEFINED RELATIONS BETWEEN THE CENTER AND THE REGIONS BUT NO MECHANISM FOR IMPLEMENTING THE ACCORD WAS WORKED OUT AND TWO LARGELY MUSLIM REPUBLICS TATARSTAN AND CHECHNYA REFUSED TO SIGN DECLARING INDEPENDENCE IN SUBSEQUENT MONTHS SEVEN OTHER REPUBLICS DECLARED THEIR LOCAL LAWS TO HAVE PRIORITY OVER FEDERAL LAW AS THE POLITICAL SITUATION IN MOSCOW HEATED UP REGIONAL COUNCILS INCREASINGLY DEMANDED MORE RIGHTS THIS FUELED THE CRACKDOWN ON THOSE REGIONAL LEGISLATURES THAT FOLLOWED THE ARMED ATTACK ON THE RUSSIAN PARLIAMENT IN OCTOBER A REVISED CONSTITUTION WAS DRAWN UP IT PASSED BARELY BY NATIONWIDE VOTE IN DECEMBER THE NEW CONSTITUTION TRIES TO RESOLVE SOME OF THESE PROBLEMS BUT DETAILS OF RELATIONS BETWEEN THE CENTER AND REGIONS ARE STILL BEING WORKED OUT MOSCOW HOWEVER HAS BEEN WILLING TO ACCOMMODATE THE ETHNIC REPUBLICS TO PREVENT THEM FROM SECEDING FOR INSTANCE IT SIGNED A SEPARATE TREATY WITH TATARSTAN IN FEBRUARY TATARSTAN IS VITAL TO RUSSIA WITH ITS RICH OIL RESOURCES AND ENTERPRISES INCLUDING THE NATION'S LARGEST TRUCK FACTORY BUT IT IS ONE OF THE REGIONS CREATED BY STALIN'S DISLOCATIONS OF ETHNIC GROUPS AND NOW STRIVES FOR INDEPENDENCE MOSCOW BY NEGOTIATING SEPARATELY WITH TATARSTAN PREVENTED IT FROM DRAWING EVEN FURTHER AWAY AND SETTING OFF A DOMINO EFFECT TO THE EAST IF TATARSTAN GETS OUT OF THE FEDERATION THEN RUSSIA WON'T BE ABLE TO CONTROL SIBERIA AND THE FAR EAST SAID PAUL GOBLE A SPECIALIST ON RUSSIA AND ITS NEIGHBORS AT THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE IN WASHINGTON DC IN THE PAST RUSSIAN REGIONS FIT TOGETHER LIKE PIECES OF A HUGE JIGSAW PUZZLE INDIVIDUALLY DISTINCT WORKING TOGETHER TO RUN THE WHOLE ECONOMY BUT AS THE CENTRALLY PLANNED ECONOMY COLLAPSED REGIONS BEGAN CLAMORING FOR HELP FROM MOSCOW INCREASINGLY A FINANCIALLY STRAPPED MOSCOW TOLD THEM TO GO IT ALONE THAT EVENTUALLY DROVE THEM TO DEMAND CONTROL OVER THEIR OWN RESOURCES AND PROFITS FURTHER DIMINISHING THE POWER OF THE CENTER REGIONAL ENTERPRISES MEANWHILE FOUND THEMSELVES WITHOUT THE SUPPLY AND PURCHASING NETWORKS TRADITIONALLY ORGANIZED BY CENTRAL PLANNERS THEY WERE FORCED TO FORGE THEIR OWN BUSINESS TIES BUT DOING SO MADE THEM MORE AWARE OF REGIONAL ADVANTAGES AND DISTINCTIONS REGIONS STARTED FORGING TIES WITH ONE ANOTHER CIRCUMVENTING THE CENTER NOW AS MOSCOW EMBRACES THE IDEA OF INDUSTRIAL POLICY IN WHICH TARGETED INDUSTRIES ARE GIVEN GREATER GOVERNMENT SUPPORT REGIONS AGAIN MUST JOSTLE FOR ACCESS TO CENTRAL SUPPORT EVENTUALLY ANALYSTS SAY RUSSIA'S INTERNAL TERRITORIES WILL NATURALLY GROUP INTO SEVERAL MAJOR DISTRICTS WITH LOCAL CAPITALS SOUTHERN SIBERIA FOR EXAMPLE WITH ITS ACTIVE SEPARATIONIST TENDENCIES COULD BECOME A REGIONAL CENTER ITS GEOGRAPHICAL ACCESS TO THE MARKETS OF FORMER SOVIET CENTRAL ASIA WOULD GIVE IT A NATURAL APPEAL TO MORE NORTHERN NEIGHBORS SOME SUCH ECONOMIC ALLIANCES ARE ALREADY FLOURISHING THE FAR EASTERN TERRITORIES AND THOSE IN THE URALS HAVE EACH GROUPED INTO POLITICAL ALLIANCES TO STIMULATE THEIR REGIONAL ECONOMIES IN MARCH 1992 SIBERIAN LEADERS HELD THEIR FIRST MAJOR MEETING AND OUT OF THAT GREW THE SIBERIAN AGREEMENT A FRAMEWORK FOR UNITING THE REGION AND COORDINATING POLICY IN REGARD TO CENTRAL AUTHORITIES SIMILAR LINKS ARE FORMING IN OTHER REGIONS AND MOSCOW DOESN'T DISCOURAGE SUCH TIES IT REALIZES THAT A BUSINESSLIKE DECENTRALIZATION IS THE BEST WAY TO PREVENT DISINTEGRATION OF THE COUNTRY THE PRINCIPAL GOAL MUST BE THE DIVIDING OF POWER BETWEEN THE CENTER AND REGIONS SAID VALERY SHAMSHUROV DEPUTY MINISTER IN RUSSIA'S MINISTRY OF NATIONALITIES AFFAIRS AND REGIONAL POLICY IT'S VERY COMPLEX BUT THE MORE WE LISTEN TO THE PEOPLE IN THE LOCALITIES THE EASIER IT WILL BE 9404250160 940425 SOUTH KOREAN TIRE EXPORTS SEOUL SOUTH KOREA SOUTH KOREA'S EXPORTS OF AUTOMOBILE TIRES AND TUBES IN THE FIRST QUARTER ROSE 91 FROM A YEAR AGO TO 286 MILLION AN INDUSTRY REPORT SHOWED THE KOREA TIRE MANUFACTURERS ASSOCIATION ATTRIBUTED THE RISE TO STRONG SALES IN THE US AND EUROPEAN COUNTRIES 9404250159 940425 MARKETING & MEDIA NOTED ACQUISITIONS WASHINGTON POST CO COMPLETED THE PREVIOUSLY ANNOUNCED ACQUISITIONS OF KPRCTV AN NBC AFFILIATE IN HOUSTON AND KSATTV AN ABC AFFILIATE IN SAN ANTONIO FROM H&C COMMUNICATIONS INC IN HOUSTON FOR 253 MILLION 9404250158 940425 WHO'S NEWS FLOWERS INDUSTRIES INC FLOWERS INDUSTRIES INC THOMASVILLE GA FRANKLIN L BURKE WAS ELECTED A DIRECTOR OF THIS FOOD CONCERN INCREASING BOARD MEMBERSHIP TO 13 MR BURKE 53 YEARS OLD IS A FINANCIAL CONSULTANT AND FORMER CHIEF OPERATING OFFICER OF BANK SOUTH CORP ATLANTA 9404250157 940425 WHAT'S NEWS WORLDWIDE A CAR BOMB EXPLODED IN SOUTH AFRICA TWO DAYS BEFORE ELECTIONS THE BOMB WENT OFF IN DOWNTOWN JOHANNESBURG KILLING NINE PEOPLE AND DAMAGING THE HEADQUARTERS OF THE AFRICAN NATIONAL CONGRESS NO ONE CLAIMED RESPONSIBILITY FOR THE BLAST WHICH ALSO WOUNDED ABOUT 100 PEOPLE ONE OF THOSE KILLED WAS AN ANC PROVINCIAL LEGISLATURE CANDIDATE THE ATTACK CAME AHEAD OF THE COUNTRY'S FIRST ALLRACE VOTE WHICH BEGINS TOMORROW AND ENDS THURSDAY POLITICAL LEADERS FROM SEVERAL PARTIES APPEALED FOR CALM I DON'T WANT YOU TO CONCENTRATE ON THE VIOLENT ACTION OF THOSE PEOPLE WHO WANT TO DISRUPT THE PROCESS SAID ANC LEADER MANDELA THE OVERWHELMING FAVORITE TO BE THE NATION'S NEXT PRESIDENT SERBS WITHDREW HEAVY WEAPONS FROM GORAZDE AFTER NATO'S ULTIMATUM THE BOSNIAN SERB FORCES GRUDGINGLY ACCEDED TO THE NATO ULTIMATUM PULLING BACK HEAVY WEAPONS FROM AROUND THE MUSLIM SAFE AREA AND ALLOWING UN PEACEKEEPERS TO ENTER THE BATTERED TOWN BUT IT WASN'T CLEAR WHETHER THE SERBS WOULD HALT THEIR DRIVE FOR TERRITORY AND RESUME NEGOTIATIONS OR MERELY REDEPLOY THEIR WEAPONS ELSEWHERE SOME US AND NATO OFFICIALS EXPRESSED FRUSTRATION THAT THEY HADN'T BEEN GIVEN THE OPPORTUNITY TO PUNISH THE SERBS WITH AIR STRIKES A 14TRUCK UN FOOD CONVOY ARRIVED IN GORAZDE AND UN HELICOPTERS EVACUATED SCORES OF PEOPLE WHO HAD BEEN WOUNDED DURING A THREEWEEK OFFENSIVE TSUTOMU HATA IS EXPECTED TO BE FORMALLY APPROVED TODAY AS JAPAN'S PRIME MINISTER HATA WHO CURRENTLY IS FOREIGN MINISTER AND DEPUTY PRIME MINISTER WAS NOMINATED FOR THE POST ON FRIDAY BY THE RULING COALITION HE INTENDS TO ANNOUNCE IMMEDIATE CABINET CHANGES RICHARD M NIXON DIED ON FRIDAY NIXON 81 WAS THE 37TH US PRESIDENT AND THE ONLY ONE EVER TO RESIGN HE FORGED A POLICY OF DETENTE WITH THE COMMUNISTS BUT ESCALATED THE VIETNAM WAR BEFORE WITHDRAWING US TROOPS THE WATERGATE SCANDAL FORCED HIM TO QUIT IN DISGRACE HIS FUNERAL WILL BE WEDNESDAY IN CALIFORNIA HILLARY CLINTON HELD A NEWS CONFERENCE TO ANSWER QUESTIONS ABOUT HER WHITEWATER INVESTMENT AND COMMODITIES TRADING DURING FRIDAY'S SESSION SHE OFTEN STATED THAT SHE DIDN'T KNOW OR COULDN'T RECALL CERTAIN INFORMATION BUT HER ADROIT HANDLING OF THE PRESS QUERIES HELPED REPAIR HER PUBLIC IMAGE MOYNIHAN SAID THAT HE WILL ATTEMPT TO REPORT A HEALTHCARE OVERHAUL MEASURE OUT OF THE SENATE FINANCE COMMITTEE AS EARLY AS THE END OF NEXT MONTH THE PRESIDENT ASKED ME IF WE CAN GET A BILL OUT BY MEMORIAL DAY SAID THE NEW YORK DEMOCRAT WHO IS THE COMMITTEE'S CHAIRMAN WE'LL TRY EL SALVADOR'S RULING ARENA PARTY SEEMED TO BE HEADED FOR A LANDSLIDE VICTORY AS VOTERS PICKED THEIR FIRST PRESIDENT SINCE THE COUNTRY'S CIVIL WAR ENDED IN 1992 ARMANDO CALDERON SOL THE RULING RIGHTWING PARTY'S CANDIDATE AND A FORMER MAYOR OF SAN SALVADOR WAS THE APPARENT VICTOR OVER RUBEN ZAMORA WHO HEADS A LEFTIST COALITION CITIES NO LONGER WILL BE FORCED TO MAKE AN ASSESSMENT EVERY THREE YEARS OF WHETHER THEY SHOULD TURN OVER MASSTRANSIT ROUTES TO PRIVATE FIRMS ACCORDING TO A POLICY CHANGE THAT WILL BE UNVEILED BY THE CLINTON ADMINISTRATION RWANDAN REBELS EXCHANGED HEAVY FIRE WITH GOVERNMENT TROOPS IN THE CAPITAL KIGALI WHILE MEDIATORS FAILED IN THEIR EFFORTS TO GET THE TWO SIDES TO BEGIN PEACE TALKS IN TANZANIA IN THE TOWN OF BUTARE IN SOUTHERN RWANDA ABOUT 170 PATIENTS AND STAFF WERE MASSACRED IN A HOSPITAL ISRAEL WILL HAVE TO DISMANTLE JEWISH SETTLEMENTS IN THE OCCUPIED TERRITORIES AND GIVE UP LAND AS PART OF ANY PEACE ARRANGEMENT WITH THE PALESTINIANS SEVERAL ISRAELI CABINET MINISTERS SAID MEANWHILE PLO AND ISRAELI NEGOTIATORS STARTED WHAT MAY BE THE LAST WEEK OF CAIRO TALKS BEFORE THEY SIGN AN ACCORD ON PALESTINIAN SELFRULE OVER 400 HAITIAN REFUGEES WERE BROUGHT ASHORE FRIDAY AT MIAMI BEACH FLA AFTER THEIR FREIGHTER WAS INTERCEPTED BY THE COAST GUARD THE US SAID IT MADE AN EXCEPTION AND BROUGHT THE GROUP ASHORE RATHER THAN RETURNING THEM BECAUSE OF CONCERN ABOUT CROWDING ON THE VESSEL ITS NEARNESS TO FLORIDA AND SUSPICIONS OF SMUGGLING 9404250156 940425 BRIDGE OIL OF AUSTRALIA TRANSFERS 50 STAKE IN A MINE TO GUINEA SPECIAL TO THE WALL STREET JOURNAL SYDNEY AUSTRALIA BRIDGE OIL LTD OF AUSTRALIA SAID IT AGREED TO TRANSFER ITS 50 STAKE IN GUINEA'S AREDOR DIAMOND MINE TO THE GUINEA GOVERNMENT FOR NOMINAL CONSIDERATION ENDING THE COMPANY'S ROCKY ASSOCIATION WITH THE WEST AFRICAN VENTURE BRIDGE OIL SAID IN A STATEMENT THAT THE DIAMOND MINE HAS BEEN PLACED ON A CAREANDMAINTENANCE BASIS WHILE THE GOVERNMENT HOLDS NEGOTIATIONS WITH OTHER PARTIES FOR THE CONTINUATION OF MINING OPERATIONS BRIDGE OIL INVESTED IN THE AREDOR DIAMOND MINE IN 1980 BUT WAS FORCED TO WRITE OFF ITS INVESTMENT IN 1990 AT A LOSS OF 1313 MILLION AUSTRALIAN DOLLARS US941 MILLION THE COST OF OPERATING THE DIAMOND MINE AND THE POLITICAL INSTABILITY IN GUINEA AND NEIGHBORING LIBERIA WERE CITED AS THE MAIN REASONS FOR THE WRITEOFF ROBERT STRAUSS BRIDGE OIL'S CHAIRMAN SAID IN A TELEPHONE INTERVIEW THAT THE COMPANY STAYED ON AS A PARTNER IN THE AREDOR MINE WITH THE GOVERNMENT AFTER 1990 BECAUSE OF A BIT OF A MORAL OBLIGATION THE COMPANY FELT TOWARD THE DEVELOPMENT OF THE COUNTRY MR STRAUSS SAID IT WAS HOPED IN 1990 THAT THE MINE WOULD AT LEAST BE ABLE TO PRODUCE ENOUGH TO MEET ITS COSTS BUT THAT THIS WAS BECOMING INCREASINGLY DOUBTFUL THE GUINEA GOVERNMENT HELD THE REMAINING 50 INTEREST IN THE MINE AND WILL NOW OWN THE PROJECT COMPLETELY MR STRAUSS SAID THE TRANSFER OF BRIDGE OIL'S STAKE WILL HAVE NO EFFECT ON THE COMPANY'S EARNINGS OR BALANCE SHEET GIVEN THE WRITEOFF MADE IN THE 1990 ACCOUNTS HE SAID RETURNS FROM THE AREDOR DIAMOND OPERATION WERE BECOMING TOO INCONSISTENT DESPITE THE DISCOVERY OF SEVERAL LARGE DIAMONDS IN RECENT YEARS THE EXECUTIVE SAID ONE DIAMOND FROM THE AREDOR MINE FETCHED A7 MILLION AT A SALE IN RECENT MONTHS A ROUGH UNCUT DIAMOND FROM THE AREDOR MINE SET A RECORD PRICE AT SALE IN 1989 WITH A HONG KONG DIAMOND DEALER PAYING A125 MILLION FOR ONE GEM WEIGHING 25561 CARATS 9404250155 940425 SOUTH KOREAN ECONOMY SEOUL SOUTH KOREA SOUTH KOREA'S ECONOMY MEASURED BY GROSS NATIONAL PRODUCT IS EXPECTED TO RISE AT AN ANNUAL RATE OF 73 IN 1994 HIGHER THAN THE PREVIOUS YEAR'S 56 KOREA DEVELOPMENT BANK GOVERNOR LEE HYONGKOO SAID IN A MEETING WITH ECONOMYRELATED MINISTERS MR LEE SAID THE NATIONAL ECONOMY IS EXPECTED TO GROW 71 IN THE FIRST HALF OF THIS YEAR AND 74 IN THE SECOND HALF 9404250154 940425 SUN HEALTHCARE BID GAINS ALBUQUERQUE NM SUN HEALTHCARE GROUP INC SAID REGULATORS IN MASSACHUSETTS AND CONNECTICUT APPROVED ITS PROPOSED 316 MILLION ACQUISITION OF MEDIPLEX GROUP INC THE PROPOSED MERGER OF THE TWO NURSINGHOME OPERATORS REMAINS SUBJECT TO SHAREHOLDERS AND OTHER REGULATORS 9404250153 940425 DENMARK'S CONSUMER PRICE INDEX COPENHAGEN DENMARK'S CONSUMER PRICE INDEX ROSE 01 IN MARCH FROM FEBRUARY WITH THE YEARONYEAR INFLATION RATE RISING TO 17 ACCORDING TO DANMARKS STATISTIK THE NATIONAL STATISTICS AGENCY A CONTINUED FALL IN OIL AND GAS PRICES CONTRIBUTED TO THE SMALL RISE IN CONSUMER PRICES THE AGENCY SAID SOME ECONOMISTS HAD PREDICTED A SLIGHT RISE IN THE YEARLY RATE TO AROUND 19 9404250152 940425 TECHNOLOGY & ENVIRONMENT UNISYS CORP PROFIT BEFORE ITEMS ROSE IN FIRST QUARTER BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK UNISYS CORP REPORTED A RESPECTABLE INCREASE IN PROFIT BEFORE EXTRAORDINARY ITEMS FOR THE FIRST QUARTER BUT POSTED AN UNEXPECTED 12 DECLINE IN REVENUE THAT COULD SIGNAL AN ANTICIPATED TURNAROUND WON'T HAPPEN THIS YEAR THE DECLINE PROMPTED JAMES UNRUH CHAIRMAN OF UNISYS TO PULL BACK FROM HIS EARLIER FORECAST THAT THE COMPUTER COMPANY WOULD SEE AN UPTURN IN REVENUE BY THE END OF THE YEAR OUR GOAL FOR SLIGHT REVENUE GROWTH IN 1994 WHICH IS DEPENDENT ON IMPROVEMENT IN EUROPE AND JAPAN IN THE SECOND HALF OF THE YEAR IS NOW A BIGGER CHALLENGE MR UNRUH SAID IN A PREPARED STATEMENT NET INCOME FOR THE FIRST QUARTER OF 60 MILLION OR 17 CENTS A SHARE INCLUDED A CHARGE OF 77 MILLION NET INCOME LAST YEAR OF 260 MILLION OR 139 A SHARE INCLUDED A NET GAIN OF 203 MILLION FROM AN ACCOUNTING CHANGE AND SETTLEMENT OF A LAWSUIT BEFORE EXTRAORDINARY CHARGES PROFIT ROSE 19 IN THE CURRENT QUARTER TO 677 MILLION OR 21 CENTS A SHARE FROM 568 MILLION OR 16 CENTS A SHARE THE REVENUE DECLINE WHICH MR UNRUH BLAMED ON EUROPE AND LAGGING SALES IN THE GOVERNMENTSYSTEMS DIVISION DISAPPOINTED WALL STREET IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING UNISYS'S STOCK DECLINED SHARPLY CLOSING AT 1150 DOWN 250 OR 17 WHILE MR UNRUH HAS EXHIBITED GOOD MANAGEMENT AND COSTCUTTING SKILLS HE HASN'T YET PROVEN THAT HIS VISION OF UNISYS AS A SERVICE PROVIDER WILL BE ENOUGH TO SPARK FUTURE GROWTH SINCE ITS PEAK REVENUE IN 1990 OF 10 BILLION UNISYS HAS SHOWN ONLY ONE QUARTER OF REVENUE GROWTH FROM THE YEAREARLIER PERIOD IN 1993 REVENUE WAS 774 BILLION PARTLY A REFLECTION OF MR UNRUH'S STRATEGY TO CONCENTRATE ON FOUR CORE BUSINESSES EVEN AT THE EXPENSE OF LOSING SOME CUSTOMERS THIS WAS SUPPOSED TO BE THE YEAR OF THE TURN SAID CURT ROHRMAN OF CS FIRST BOSTON WHILE UNISYS'S EUROPEAN SALES WHICH ACCOUNT FOR 25 OF TOTAL REVENUE FAILED TO REBOUND OTHER COMPANIES HAVE EXPERIENCED A SLIGHT UPTURN IN THAT MARKET MR ROHRMAN SAID INTERNATIONAL BUSINESS MACHINES CORP FOR EXAMPLE REPORTED A 3 INCREASE IN EUROPEAN REVENUE UNISYS REVENUE DECLINED TO 168 BILLION FROM 190 BILLION A YEAR EARLIER COMMERCIAL COMPUTING OPERATIONS WHICH INCLUDE MAINFRAMES SHOWED A 15 REVENUE INCREASE UNISYS ALSO SAID SERVICES REVENUE GREW 11 IN THE QUARTER AND WAS UP EVEN IN EUROPE 9404250151 940425 NATIONAL SEMICONDUCTOR STOCK SANTA CLARA CALIF NATIONAL SEMICONDUCTOR CORP SAID IT REDEEMED 2486820 OF 4 DEPOSITORY CONVERTIBLE EXCHANGEABLE PREFERRED STOCK FOR ITS COMMON STOCK AT THE RATE OF 33 COMMON SHARES FOR EACH PREFERRED SHARE AN ADDITIONAL 13180 PREFERRED SHARES REMAIN OUTSTANDING AND MAY BE CONVERTED TO COMMON UNDER A STANDBY ARRANGEMENT WITH SALOMON BROTHERS INC 9404250150 940425 GERMAN REGIONAL CHEMICAL SALES HANOVER GERMANY SALES BY WESTERN GERMANY'S CHEMICALS INDUSTRY TOTALED 41 BILLION MARKS 2424 BILLION IN THE FIRST QUARTER UP 17 FROM THE YEAREARLIER PERIOD'S 403 BILLION MARKS ACCORDING TO THE VICE PRESIDENT OF THE CHEMICALS INDUSTRY FEDERATION PRODUCTION AND SALES ARE NOTICEABLY IMPROVING SAID MANFRED SCHNEIDER ALSO CHAIRMAN OF GERMAN CHEMICALS GROUP BAYER AG SALES BY THE EASTERN GERMAN CHEMICALS INDUSTRY WERE 17 BILLION MARKS 101 BILLION IN THE FIRST QUARTER UP 63 FROM A YEAREARLIER 16 BILLION MARKS HE SAID 9404250149 940425 TECHNOLOGY BORLAND TO CUT EUROPEAN FORCE SCOTTS VALLEY CALIF BORLAND INTERNATIONAL INC SAID IT WILL CUT ABOUT 20 OF ITS EUROPEAN WORK FORCE THE SOFTWARE CONCERN WHICH HAS BEEN BATTERED BY PRICE WARS INDUSTRY CONSOLIDATION AND ITS OWN MANAGEMENT TROUBLES SAID EARLIER THAT IT WOULD ANNOUNCE SOME EUROPEAN LAYOFFS THE COMPANY SAID FRIDAY IT WILL ELIMINATE ABOUT 200 EUROPEAN JOBS AS A PART OF ITS EFFORT TO FOCUS ON ITS CORE BUSINESSES AND REGIONALIZE MARKETING AND FINANCE ACTIVITIES 9404250148 940425 WHO'S NEWS LIZ CLAIBORNE PICKS OUTSIDE EXECUTIVE AS VICE CHAIRMAN AND POTENTIAL CEO BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LIZ CLAIBORNE INC NAMED AN OUTSIDER PAUL R CHARRON VICE CHAIRMAN AND CHIEF OPERATING OFFICER AND SOME PEOPLE CLOSE TO CLAIBORNE SAID HE WILL BE GROOMED TO BECOME THE BIG APPAREL MAKER'S NEXT CHIEF EXECUTIVE WITHIN TWO YEARS EARLIER THIS YEAR CLAIBORNE WHICH HAS SEEN ITS EARNINGS PLUNGE RECENTLY AFTER MORE THAN A DECADE OF DRAMATIC GROWTH BEGAN LOOKING OUTSIDE THE COMPANY FOR A POSSIBLE SUCCESSOR TO ITS LONGTIME CHAIRMAN JEROME CHAZEN WHO IS 67 YEARS OLD MR CHARRON 51 HAS BEEN EXECUTIVE VICE PRESIDENT AT VF CORP THE LARGEST PUBLICLY HELD APPAREL MAKER INITIALLY MR CHARRON WILL JOIN CLAIBORNE'S EXECUTIVEMANAGEMENT TEAM COMPRISED OF MR CHAZEN AND HARVEY FALK 59 WHO IS ALSO A VICE CHAIRMAN AND SERVES AS CLAIBORNE'S PRESIDENT IN AN INTERVIEW FRIDAY MR CHAZEN DUCKED THE SUCCESSION ISSUE SAYING RIGHT NOW WE ARE WORRYING ABOUT THE CHALLENGES THAT ARE FACING THE COMPANY WE'VE TRIED TO TAKE A TEAM APPROACH TO THE BUSINESS WHILE NOTING THAT MR CHARRON'S SKILLS COMPLEMENT MR FALK'S HE STRESSED I'M NOT LEAVING THERE IS MORE THAN ENOUGH WORK HERE FOR ALL OF US THE DOMINANT WOMEN'S BRAND IN DEPARTMENT STORES IN THE 1980S CLAIBORNE HAS LOST ITS EDGE RECENTLY AS RETAILERS CUT BACK ON ORDERS OF ITS CORE WOMEN'S SPORTSWEAR COLLECTIONS WHICH ACCOUNT FOR 46 OF ITS 22 BILLION ANNUAL SALES LAST YEAR CLAIBORNE'S NET INCOME PLUNGED 24 AND THIS YEAR IT HAS INITIATED A NUMBER OF STEPS AIMED AT STRENGTHENING EARNINGS THE PLANS CALL FOR SHORTENING ITS PRODUCTION CYCLES UPDATING ITS FASHION IMAGE LOWERING PRICES AT RETAIL AND GENERATING MORE GROWTH THROUGH ITS NEWER DIVISIONS SUCH AS MENSWEAR AS CHIEF OPERATING OFFICER MR CHARRON WILL HOLD WHAT MR CHAZEN TERMED AN UNUSED TITLE AT THE COMPANY BUT MR FALK HAS BEEN FUNCTIONING AS CLAIBORNE'S DE FACTO OPERATIONAL CHIEF FOR YEARS IN PRACTICE PEOPLE CLOSE TO THE COMPANY CONTEND MR CHARRON WILL BE AN UNDERSTUDY TO MR CHAZEN WHO IS CLAIBORNE'S CHIEF MERCHANDISING EXECUTIVE AND LIAISON WITH RETAILERS LAURENCE LEEDS WHO FOLLOWS THE APPAREL INDUSTRY AS MANAGING DIRECTOR OF BUCKINGHAM RESEARCH GROUP SUGGESTED THAT MR CHARRON WOULDN'T HAVE LEFT VF WITHOUT SOME PROMISE OF ASCENDING TO THE TOP JOB AT CLAIBORNE COMMON SENSE WOULD SAY THAT HE WOULDN'T LEAVE A MAJOR EXECUTIVE POSITION AT VF WHERE HE WAS IN CHARGE OF OVER 2 BILLION IN SALES UNLESS HE HAD ASSURANCE THAT BARRING ANY MAJOR INCOMPATIBILITY HE WOULD BE THE NEXT CHIEF EXECUTIVE MR LEEDS SAID MR LEEDS CALLED MR CHARRON ONE OF THE BEST MARKETING EXECUTIVES IN THE APPAREL INDUSTRY IT WAS WIDELY KNOWN THAT MR CHARRON WAS DISAPPOINTED LAST FALL WHEN HIS PRINCIPAL RIVAL AT VF MACKEY MCDONALD WAS PROMOTED TO VICE CHAIRMAN AND PUT IN LINE TO SUCCEED MR PUGH VF BASED IN WYOMISSING PA PRODUCES LEE AND WRANGLER JEANS VANITY FAIR LINGERIE AND OTHER APPAREL OF HIS NEW APPOINTMENT AT CLAIBORNE MR CHARRON SAID I'M VERY SANGUINE ABOUT THIS SITUATION I WOULDN'T HAVE LEFT A GREAT COMPANY LIKE VF IF I DIDN'T THINK THAT THERE WAS TREMENDOUS CHALLENGE AND OPPORTUNITIES AT LIZ CLAIBORNE WHICH IS ONE OF THE GREAT BRAND FRANCHISES WHATEVER HAPPENS HAPPENS MR CHARRON HOLDS AN MBA FROM HARVARD UNIVERSITY AND HAS WORKED IN VARIOUS MARKETING POSITIONS AT CANNON MILLS CO GENERAL FOODS CORP AND PROCTER & GAMBLE CO AT VF HE REPOSITIONED ITS VASSARETTE LINGERIE BUSINESS FROM A BRAND SOLD AT DEPARTMENT STORES TO ONE SOLD BY MASS MERCHANTS MOVED HALF OF ITS PRODUCTION OVERSEAS AND ACQUIRED EUROPEAN LINGERIE BRANDS TO INTEGRATE INTO VASSARETTE CLAIBORNE ANNOUNCED MR CHARRON'S APPOINTMENT FRIDAY BEFORE THE MARKET CLOSED ITS SHARES CLOSED 875 CENTS HIGHER AT 26 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9404250147 940425 TREASURY TO SELL 52WEEK BILLS WASHINGTON THE TREASURY PLANS TO RAISE 215 BILLION IN NEW CASH WITH THE SALE THURSDAY OF ABOUT 165 BILLION OF 52WEEK BILLS THE BALANCE OF THE PROCEEDS WILL REDEEM MATURING BILLS NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON EASTERN DAYLIGHT TIME THURSDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EDT THE BILLS AVAILABLE IN MINIMUM DENOMINATIONS OF 10000 WILL BE DATED MAY 5 AND WILL MATURE MAY 4 1995 THE CUSIP NUMBER IS 912794R89 9404250146 940425 USTRAILS LAUNCHES TENDER OFFER DALLAS USTRAILS INC SAID IT BEGAN A DUTCH AUCTION TENDER OFFER FOR 8 MILLION IN PRINCIPAL OF ITS SECURED NOTES UNLESS EXTENDED THE CAMPGROUND AND RESORT OPERATOR SAID THE OFFER WILL END AND THE WITHDRAWAL RIGHTS WILL EXPIRE AT 5 PM EDT ON MAY 26 HOLDERS OF SECURED NOTES MAY TENDER THEM AT BETWEEN 800 AND 850 PER 1000 OF PRINCIPAL AMOUNT IN MULTIPLES OF 5 OF PRINCIPAL AMOUNT PLUS ACCRUED INTEREST USTRAILS SAID IT WILL BEGIN BUYING THE NOTES TENDERED AT THE LOWEST PRICE IN THE RANGE UNTIL IT SPENDS 8 MILLION 9404250145 940425 CANADIAN FIRM PLANS TO ACQUIRE A STAKE IN PIPELINE PROJECT CALGARY ALBERTA TRANSCANADA PIPELINES LTD SAID IT TENTATIVELY AGREED TO ACQUIRE AT LEAST 25 OF A 32 BILLION PROJECT TO BUILD A GAS PIPELINE TO PAKISTAN FROM QATAR ON THE PERSIAN GULF THE CALGARY PIPELINE COMPANY SAID IT WILL BE A PARTNER IN THE PROJECT'S OPERATING COMPANY UNDER AN INTERIM AGREEMENT WITH ITS LEAD SPONSOR CRESCENT PETROLEUM A CLOSELY HELD UNITED ARAB EMIRATES COMPANY IT SAID THE TERMS OF THE TRANSACTION AND ITS EXACT OWNERSHIP STAKE IN THE PROPOSED PIPELINE ARE CONFIDENTIAL HALLIBURTON CO A DALLASBASED ENERGY SERVICES COMPANY SAID ITS WHOLLYOWNED SUBSIDIARY BROWN & ROOT INC ALSO WILL BE INVOLVED IN THE PROJECT AS A COSPONSOR AND CONTRACTOR THE COMPANY SAID ITS ENGINEERING AND CONSTRUCTION UNIT WILL ASSIST IN DEVELOPING THE GULFSOUTH ASIA GAS PROJECT AND WILL SERVE AS ITS TURNKEY CONTRACTOR TRANSCANADA SAID IT EXPECTS THE PROPOSED 994MILE PIPELINE TO BE IN SERVICE IN THE LATE 1990S IT SAID THE PIPELINE WILL INITIALLY TRANSPORT 16 BILLION CUBIC FEET A DAY OF NATURAL GAS RISING EVENTUALLY TO 24 BILLION CUBIC FEET A DAY HALLIBURTON SAID THE FIRST PHASE OF THE PROJECT IS SCHEDULED TO BEGIN IN EARLY 1996 THE PROPOSED PIPELINE WILL TRANSPORT GAS OFFSHORE FROM QATAR TO FACILITIES NEAR KARACHI PAKISTAN IT SAID AT ITS ANNUAL MEETING FRIDAY TRANSCANADA SAID THE NEW PIPELINE PROJECT IS ONE OF A NUMBER OF NORTH AMERICAN AND OVERSEAS ENERGY PROJECTS IN WHICH IT EXPECTS TO PARTICIPATE DURING THE NEXT SIX TO SEVEN YEARS THE COMPANY SAID ITS SHARE OF CAPITAL SPENDING ON ALL THE PROJECTS IT HOPES WILL MATERIALIZE COULD TOTAL 65 BILLION HOWEVER IT HAS YET TO SIGN FIRM AGREEMENTS ON ANY OF THESE PROJECTS TRANSCANADA ALSO ANNOUNCED THAT ITS BOARD APPOINTED GEORGE WATSON 46 YEARS OLD AS ITS CHIEF EXECUTIVE SUCCEEDING GERALD MAIER 65 WHO IS RETIRING THE COMPANY SAID MR WATSON WAS ALSO REAPPOINTED TO HIS EXISTING POSITION AS TRANSCANADA'S PRESIDENT AND THAT MR MAIER WILL REMAIN THE COMPANY'S CHAIRMAN 9404250144 940425 LAW LEGAL BEAT ALLEGATION OF JUDICIAL CORRUPTION PROMPTS TEST OF DOUBLE JEOPARDY BY MARGARET A JACOBS STAFF REPORTER OF THE WALL STREET JOURNAL WHEN ALLEGED MOB HIT MAN HARRY ALEMAN WALKED OUT OF AN ILLINOIS COURTROOM 17 YEARS AGO HE THOUGHT HE HAD BEATEN A MURDER CHARGE NOW PROSECUTORS WANT TO RETRY HIM IN WHAT MAY BE A CARDINAL TEST OF THE CONSTITUTIONAL PROTECTION AGAINST DOUBLE JEOPARDY BEING TRIED TWICE FOR THE SAME CRIME THE GOVERNMENT ASSERTS THE JUDGE WAS BRIBED AND THEREFORE THE USUALLY IRONCLAD BAR AGAINST RETRIAL DOESN'T APPLY WE INTEND TO PROVE ALEMAN WAS NEVER IN JEOPARDY OF BEING CONVICTED SAYS COOK COUNTY STATE'S ATTORNEY JACK O'MALLEY THOUGH THE CONSTITUTION HAS BEEN INTERPRETED TO PREVENT RETRIALS EVEN IN THE FACE OF GRAVE INJUSTICE THE PROSECUTOR SAYS THE ALEMAN CASE CRIES OUT FOR AN EXCEPTION THE CONSTITUTION DOES NOT PROTECT PEOPLE WHO FIX MURDER CASES OR BRIBE JUDGES MR O'MALLEY SAYS CHICAGO ATTORNEY ALLAN A ACKERMAN WHO REPRESENTS MR ALEMAN COUNTERS THAT THE PROSECUTION HARBORS A BASIC MISUNDERSTANDING OF THOSE PROTECTIONS AFFORDED ALL CITIZENS MANY CONSTITUTIONAL EXPERTS EXPECT THE ISSUE TO REACH THE US SUPREME COURT IN DECEMBER A GRAND JURY IN STATE COURT IN CHICAGO REINDICTED THE 55YEAROLD MR ALEMAN FOR THE 1972 MURDER OF BILLY LOGAN A WAREHOUSE WORKER AND TEAMSTERSUNION STEWARD ROBERT COOLEY A FORMER CHICAGO POLICE OFFICER AND LAWYER IS EXPECTED TO TESTIFY FOR THE STATE THAT DURING THE LOGAN MURDER TRIAL IN 1977 HE GAVE PRESIDING JUDGE FRANK WILSON 10000 IN A MEN'S BATHROOM IN RETURN FOR MR ALEMAN'S ACQUITTAL IN ILLINOIS STATE COURT MR COOLEY BECAME A GOVERNMENT INFORMANT IN 1986 HE HAS TESTIFIED IN A SERIES OF FEDERAL JUDICIALCORRUPTION AND POLITICALCORRUPTION TRIALS ABOUT THE BRIBE BUT HADN'T BEEN MADE AVAILABLE TO STATE PROSECUTORS UNTIL LAST YEAR ACCORDING TO PATRICK QUINN WHO SUPERVISES THE ORGANIZEDCRIME SECTION OF THE STATE ATTORNEY'S OFFICE ALSO KNOWN AS HANDSOME HARRY OR HARRY THE HITMAN MR ALEMAN HAS BEEN IN CUSTODY STEMMING FROM OTHER CONVICTIONS FOR 15 OF THE PAST 16 YEARS THE FORMER INTIMATE OF A LATE MOB BOSS HE IS SERVING A 12YEAR PRISON SENTENCE FOR EXTORTION AND ISN'T EXPECTED TO BE RELEASED FOR ANOTHER SIX YEARS PROSECUTORS SAY HE HAS ALWAYS INSISTED WITH TWO WITNESSES TO CORROBORATE THAT HE WAS 15 MILES AWAY DRIVING GOLF BALLS AT THE TIME OF THE LOGAN MURDER BUT TWO OTHER WITNESSES TELL A DIFFERENT STORY A NEIGHBOR OF THE VICTIM SAID HE SAW MR ALEMAN TAKE THREE SHOTS THE LAST TWO WHILE STANDING OVER THE BODY WITH A SKI MASK RAISED APPARENTLY SO THE VICTIM WOULD SEE HIS ATTACKER MR ALEMAN'S DRIVER TESTIFIED THAT HE HELPED PLAN AND WITNESSED THE ASSASSINATION SUPPOSEDLY A RETALIATION FOR THE VICTIM'S REFUSAL TO FACILITATE THEFTS FROM TRUCKS IN ACQUITTING MR ALEMAN JUDGE WILSON SAID THE EYEWITNESSES WEREN'T CREDIBLE THE NEIGHBOR HE EXPLAINED HAD ONCE FAILED TO PAY FURNITURE BILLS AND THE DRIVER WAS A CONVICTED CRIMINAL OUTRAGE OVER THE PERCEIVED INJUSTICE HELPED SPAWN THE FARREACHING FEDERAL INVESTIGATION THREE YEARS LATER KNOWN AS OPERATION GRAYLORD WHICH EXPOSED WIDESPREAD JUDICIAL CORRUPTION IN CHICAGO MR ALEMAN IS EXPECTED TO SOON FILE PAPERS SEEKING THE DISMISSAL OF THE INDICTMENT ARGUING THAT A SECOND TRIAL WOULD NOT ONLY VIOLATE DOUBLE JEOPARDY BUT HIS RIGHT TO A SPEEDY PROSECUTION SINCE WITNESSES HAVE GONE AND MEMORIES FADED MR ACKERMAN SAYS CONSTITUTIONAL EXPERTS SAY THAT THE FIFTH AMENDMENT'S DOUBLEJEOPARDY PROHIBITION IS USUALLY ABSOLUTELY FINAL THE UNDERLYING IDEA WHICH HAS ITS ROOTS IN ROMAN AND JEWISH LAW IS TO CREATE AN ESSENTIALLY FAIR PROCESS THAT MAY NOT ALWAYS GET THE RIGHT RESULT BUT THAT GIVES THE STATE ONE AND ONLY ONE SHOT AT A DEFENDANT SAYS PROF GERARD LYNCH OF COLUMBIA LAW SCHOOL OTHERWISE THE GOVERNMENT WOULD HAVE AN UNFAIR ADVANTAGE AND ACQUITTED DEFENDANTS WOULD LIVE IN CONTINUAL FEAR THEY COULD BE REPROSECUTED COURTS WARY OF LOOPHOLES HAVE PREVENTED SECOND TRIALS EVEN WHEN THERE HAS BEEN SOME CORRUPTION IN THE JUDICIAL PROCESS ITSELF SUCH AS A WITNESS COMMITTING PERJURY OR A DEFENDANT LATER ADMITTING THAT HIS DEFENSE WAS FABRICATED BUT SEVERAL CONSTITUTIONAL AND CRIMINAL EXPERTS BELIEVE THE ALEMAN CASE PRESENTS COMPELLING REASONS FOR AN EXCEPTION IF IT CAN BE PROVED THAT THE JUDGE WAS BRIBED THE WHOLE PROCEEDING WAS MEANINGLESS IT'S AS IF A KANGAROO COURT HAD BEEN CONVENED SAYS PROF STEPHEN J SCHULHOFER OF THE UNIVERSITY OF CHICAGO BOTH SIDES EXPECT APPEALS ON THE CONSTITUTIONAL ISSUES ALONE TO TAKE SEVERAL YEARS AND EVEN IF THE PROSECUTION WINS IT WILL STILL HAVE A DIFFICULT MURDER CASE TO RETRY WHILE THE TWO EYEWITNESSES ARE EXPECTED TO TESTIFY SEVERAL OTHER WITNESSES ARE DEAD THE JUDGE WHO RESIGNED FROM THE BENCH A YEAR AFTER THE CASE COMMITTED SUICIDE IN 1990 SHORTLY AFTER BEING INTERVIEWED BY THE FBI ABOUT THE ALLEGED BRIBE SEVERAL QUESTION THE PROSECUTOR'S MOTIVATION IN MOUNTING SUCH A CHALLENGE MR ALEMAN'S ATTORNEY AND OTHERS SUGGEST THAT MR O'MALLEY WHO IS SAID TO HAVE HIGHER POLITICAL AMBITIONS MAY BE PLAYING TO PUBLIC OPINION BUT MR QUINN OF THE STATE ATTORNEY'S OFFICE COUNTERS THIS IS NOT A POLITICALLY MOTIVATED PROSECUTION THIS MAN IS A KILLING MACHINE AND WE WANT HIM OFF THE STREET FOR LIFE DISCRIMINATION LAWS DESIGNED TO PROTECT EMPLOYEES ALSO MAY APPLY TO PEOPLE WITH THE TITLE OF PARTNER A FEDERAL JUDGE RULED THE RULING ALLOWS A 46YEAROLD MAN WHO WAS FIRED FROM THE ACCOUNTING FIRM ERNST & YOUNG TO PROCEED WITH AN AGEDISCRIMINATION LAWSUIT AGAINST THE FIRM ERNST & YOUNG HAD ASKED THE COURT TO DISMISS THE CASE ARGUING THAT THE MAN P LARUE SIMPSON WASN'T COVERED BY FEDERAL AGEDISCRIMINATION LAW BECAUSE HE WAS A PARTNER THE US AGE DISCRIMINATION BY EMPLOYMENT ACT APPLIES ONLY TO EMPLOYEES BUT US DISTRICT JUDGE ROBERT STEINBERG IN CINCINNATI RULED THAT MR SIMPSON HAD FEW IF ANY MEANINGFUL ATTRIBUTES OF A PARTNER ALTHOUGH MR SIMPSON HAD THE TITLE OF PARTNER THE JUDGE SAID HE HAD NO FINANCIAL INVESTMENT IN ERNST & YOUNG LACKED SIGNIFICANT VOTING RIGHTS AND DIDN'T SHARE IN THE FIRM'S PROFITS AND LOSSES JUDGE STEINBERG ALSO RULED THAT BECAUSE MR SIMPSON WAS IN EFFECT AN EMPLOYEE HIS RETIREMENT BENEFITS ARE PROTECTED BY THE FEDERAL EMPLOYMENT RETIREMENT INCOME SECURITY ACT THE OPINION IS SIGNIFICANT BECAUSE IT COULD OPEN OTHER PARTNERSHIPS INCLUDING SOME LAW FIRMS AND INVESTMENT FIRMS WITH NONEQUITY AS WELL AS EQUITY PARTNERS TO GREATER LIABILITY UNDER EMPLOYMENTDISCRIMINATION LAWS SAID JANET ABARAY A LAWYER WITH THE FIRM WAITE SCHNEIDER BAYLESS & CHESLEY IN CINCINNATI WHO REPRESENTED MR SIMPSON NONEQUITY PARTNERS CAN HAVE A GREATER MANAGEMENT ROLE THAN A FIRM'S ORDINARY EMPLOYEES MR SIMPSON'S CASE IS SCHEDULED TO GO TO TRIAL TOMORROW MORT MEYERSON A SPOKESMAN FOR ERNST & YOUNG IN NEW YORK SAID THE FIRM PLANS TO APPEAL JUDGE STEINBERG'S RULING EDWARD FELSENTHAL CONTRIBUTED TO THIS ARTICLE 9404250143 940425 TECHNOLOGY SCHERINGAGOURON PACT EXPIRES MADISON NJ SCHERINGPLOUGH CORP SAID ITS THREEYEAR RESEARCH COLLABORATION AGREEMENT WITH AGOURON PHARMACEUTICALS INC WHICH EXPIRED FRIDAY WON'T BE EXTENDED SCHERINGPLOUGH AND AGOURON BASED IN LA JOLLA CALIF HAD AGREED TO DEVELOP ANTICANCER DRUGS THAT ATTACK A HUMAN PROTEIN CALLED RAS BUT THE COMPANIES HADN'T BEEN ABLE TO IDENTIFY ANY COMPOUNDS THAT WARRANTED BEING MOVED INTO DEVELOPMENT SAID SCHERINGPLOUGH A MAJOR DRUG AND PHARMACEUTICAL MAKER 9404250142 940425 TENNECO SAID TO BE PREPARING TO SHED CASE PLANS FOR MAKER OF FARM BUILDING EQUIPMENT MAY BE UNVEILED SOON BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON TENNECO INC IS EXPECTED TO UNVEIL PLANS THIS WEEK TO SHED ITS CASE CORP SUBSIDIARY THE NATION'S SECONDBIGGEST FARM EQUIPMENT MAKER AND ONE OF THE LARGEST BUILDERS OF CONSTRUCTION EQUIPMENT THE COMPANY COULD REVEAL ITS INTENTIONS AS EARLY AS TOMORROW WHEN TENNECO IS SCHEDULED TO RELEASE ITS FIRSTQUARTER EARNINGS SAID EXECUTIVES FAMILIAR WITH TENNECO'S PLANS THE COMPANY'S RECENTLY ELECTED CHIEF EXECUTIVE OFFICER DANA MEAD PLANS TO FLY TO NEW YORK FOR A PRESENTATION BEFORE SECURITIES ANALYSTS TO EXPLAIN THE PLAN IN DETAIL MR MEAD WHO IS ALSO CHAIRMAN OF THE CASE SUBSIDIARY IS LARGELY CREDITED WITH ITS LATEST TURNAROUND HE AND OTHER TENNECO OFFICIALS DECLINED TO COMMENT ON THE COMPANY'S PLANS WHAT FORM A DIVESTITURE WOULD TAKE WASN'T IMMEDIATELY CLEAR BUT IT APPEARS TENNECO WILL RETAIN A STAKE IN CASE ONE SENIOR OFFICIAL SAID TENNECO WOULD MAKE AN INITIAL PUBLIC OFFERING OF CASE SHARES MARKET SPECULATION ABOUT A SPINOFF OF CASE TO TENNECO HOLDERS HAS PERCOLATED RECENTLY BUT A SPINOFF SEEMS A LESSLIKELY OPTION BECAUSE IT WOULDN'T RAISE ANY CASH FOR THE PARENT COMPANY PEOPLE FAMILIAR WITH TENNECO'S PLANS SAID CASE IS ONE OF THE GRAND OLD NAMES OF AMERICAN BUSINESS WITH HEADQUARTERS IN RACINE WIS IT WAS FOUNDED IN 1842 BY JEROME INCREASE CASE IN 1967 IT WAS FOLDED INTO TENNECO A HUGE CONGLOMERATE WITH INTERESTS AS VARIED AS NATURALGAS PIPELINES SHIPBUILDING AND PACKAGING PRODUCTS IN 1985 TENNECO ACQUIRED AGRICULTURAL EQUIPMENT ASSETS FROM INTERNATIONAL HARVESTER AND BLENDED THEM INTO CASE WITH 1993 REVENUE OF 375 BILLION CASE IS TENNECO'S LARGEST SUBSIDIARY AND THE CURRENT MARKET FOR ITS PRODUCTS IS AS GOOD AS IT HAS BEEN IN YEARS FARM AND CONSTRUCTION EQUIPMENT ARE HAVING A TERRIFIC TIME SAID ELI LUSTGARTEN AN ANALYST AT PAINEWEBBER INC WE'VE GONE THROUGH A DECADE OF UNDERINVESTMENT HE SAID AND THE UNDERLYING FORCES FOR THESE INDUSTRIES CAN ALLOW THE DEMAND FOR EQUIPMENT TO RISE STRONGLY FOR SEVERAL YEARS UNDER NEW MANAGEMENT CASE HAS EXPERIENCED A RECOVERY THAT IF PROLONGED COULD MAKE IT A MORE FORMIDABLE COMPETITOR TO DEERE & CO THE BIGGEST US FARM EQUIPMENT MAKER AND CATERPILLAR INC THE BIGGEST US CONSTRUCTION EQUIPMENT MAKER THE OUTLOOK FOR CASE FREQUENTLY HAS BEEN MUCH WORSE AND IT HAS BEEN A SORE SPOT FOR TENNECO FOR ABOUT A DECADE REQUIRING CONSTANT MANAGEMENT ATTENTION AND NEW ROUNDS OF RESTRUCTURINGS AS RECENTLY AS 1992 CASE HAD AN OPERATING LOSS OF 105 BILLION WHICH INCLUDED A 920 MILLION RESTRUCTURING CHARGE FOR CHANGES LASTING THROUGH 1996 FIVE YEARS AGO CASE HAD AN OPERATING PROFIT OF 228 MILLION ON REVENUE OF 507 BILLION AND EMPLOYED 27700 PEOPLE LAST YEAR'S WORK FORCE TOTALED 17200 TENNECO SAID A TURNAROUND BEGAN IN 1993 WHEN CASE RECORDED OPERATING PROFIT OF 82 MILLION MANY WALL STREET ANALYSTS PREDICT CASE'S PROFIT WILL TRIPLE THIS YEAR BUT THE RECENT STOCK MARKET GYRATIONS POSE CHALLENGES TO TENNECO'S PLANS FOR CASE FOR INSTANCE LAST WEEK CATERPILLAR POSTED A FIVEFOLD INCREASE IN NET INCOME TO 192 MILLION ITS BEST FIRST QUARTER EVER BUT WALL STREET PUNISHED THE STOCK BY DRIVING ITS PRICE DOWN 45 IN A BROAD SELLOFF OF CYCLICAL ISSUES PROMPTED BY CONCERNS OVER RISING INTEREST RATES CATERPILLAR SHARES HAVE MOSTLY RECOVERED SINCE THEN WALL STREET ANALYSTS HAVE BEEN EXPECTING TENNECO TO DO SOMETHING WITH CASE AT VARIOUS TIMES SINCE THE MID1980S TENNECO OFFICIALS HAVE INDICATED THEY WANTED THE COMPANY IN STRONG FINANCIAL SHAPE BEFORE TRYING TO SEGREGATE IT FROM THE REST OF TENNECO AS RECENTLY AS FEBRUARY MR MEAD TENNECO'S CHIEF EXECUTIVE SAID CASE WASN'T FOR SALE BUT ADDED THAT WE HAVE ALWAYS SAID WE'RE OPPORTUNISTIC AND WANT TO IMPROVE SHAREHOLDER VALUE BETWEEN IMPROVEMENTS IN CASE AND THE PICKUP IN ITS MARKETS THE TIMING APPEARS RIPE MR LUSTGARTEN FOR INSTANCE SAID THAT NO MATTER WHAT HAPPENS THE RECOVERY BY CASE IS CLEARLY THE FOCUS OF SUBSTANTIALLY GREATER EARNINGS GROWTH OVER THE NEXT FEW YEARS WHEN TENNECO RELEASES FIRSTQUARTER RESULTS TOMORROW MUCH OF THE INCREASE WILL BE DUE TO CASE MR LUSTGARTEN SAID IN PREDICTING NET INCOME OF ABOUT 61 CENTS A SHARE IN THE 1993 FIRST QUARTER TENNECO EARNED 74 MILLION OR 46 CENTS A SHARE ON REVENUE OF 325 BILLION 9404250141 940425 AS MOTHER CRAB TELLS THE KIDDIES GLUG GLUG GLUG GLUG GLUG GLUG' BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL CANNES FRANCE MOVE OVER BARNEY AS NEARLY 850 COMPANIES AND REPRESENTATIVES FROM 100 COUNTRIES GATHERED IN CANNES LAST WEEK TO BUY AND SELL TELEVISION PROGRAMS AT THE MARCHE INTERNATIONALE DES PROGRAMMES DE TELEVISION THE POPULAR PURPLE DINOSAUR SHOW FACED SUCH POWERFUL COMPETITION AS THE MIGHTY MORPHIN POWER RANGERS ANIMATED ANIMAL TALES FROM HUNGARY AND POWER RANGER CLONES FROM JAPAN AND THEN THERE'S FINNIMAGE REPRESENTING INDEPENDENT PRODUCERS FROM FINLAND WITH ITS OFFERING UNDERWATER PUPPET THEATRE THE BROCHURE PROMISES A UNIQUE TV SERIES AND INDEED THERE IS NOTHING LIKE IT ANYWHERE ELSE IN THE MARKET THE SERIES A COLLECTION OF FOLK TALES FROM SRI LANKA AND THAILAND TARGETED AT SIXTO12YEAROLDS PROMISES TO EXPLORE SUCH VARIED TOPICS AS THE GASTRIC ACIDS OF A CROCODILE THE RAW MATERIALS OF THE PERFUME INDUSTRY AND THE MAXIMS OF MOTHER CRAB ALL TO EXPLAIN THE CULTURE TRADITIONS AND VALUES OF SOUTHEAST ASIA BECAUSE THE FOLK TALES TAKE PLACE UNDERWATER THE PRODUCER NATURALLY PLANS TO DO MOST OF THE FILMING OF THE ELABORATELY BEJEWELED PUPPETS UNDERWATER THE PROBLEM IS THE PRODUCERS RAISED ONLY ENOUGH MONEY FOR JUST ONE BRIEF TRIP TO SRI LANKA TO SHOOT A 13MINUTE PILOT AND THE WEATHER WAS DARK AND STORMY SO IS THE PILOT WITH THE PUPPETS SOMETIMES BARELY VISIBLE THROUGH THE MURKY GREEN WATER SINCE PRODUCERS USE PILOTS TO SELL SHOWS AND RAISE FINANCING FOR MORE EPISODES IT APPEARS THAT THIS ONE MAY HAVE A STRUGGLE TO SUCCEED STILL PROJECT MANAGER MARITA RAINBIRD SAYS BUYERS FROM DANISH SWEDISH CHINESE JAPANESE CANADIAN AND GERMAN TELEVISION SHOWED INTEREST IN THE SERIES WHICH IS LOOKING TO RAISE ABOUT 600000 TO PRODUCE THE 12 EPISODES MS RAINBIRD IS CONFIDENT THAT WITH SOME CHANGES PERHAPS SHOOTING THE FOOTAGE IN A SWIMMING POOL INSTEAD OF IN THE WILD FOR EXAMPLE THE SERIES WILL GET ON THE AIR THERE ARE TOO MANY VIOLENT CARTOONS SHE SAYS THIS IS A VERY GOOD EXAMPLE OF NOT UNDERESTIMATING CHILDREN MS RAINBIRD CONCEDES THAT UNDERWATER PUPPET THEATRE MIGHT HAVE A DIFFICULT TIME FINDING A HOME ON US TELEVISION BUT SAYS IT'S A GOOD THING FOR AMERICANS TO KNOW ABOUT 9404250140 940425 MACHINETOOL ORDERS JUMPED IN MARCH CAPPING BEST FIRST QUARTER SINCE 1980 BY RAJU NARISETTI STAFF REPORTER OF THE WALL STREET JOURNAL MACHINETOOL ORDERS ROSE 26 TO 3468 MILLION IN MARCH FROM FEBRUARY AS DOMESTIC MANUFACTURING COMPANIES MAINTAIN A ROBUST OUTLOOK FOR CAPITAL SPENDING FOR THE FIRST QUARTER OF 1994 ORDERS REACHED 98265 MILLION A 24 JUMP FROM LAST YEAR PROPELLED PRIMARILY BY A 37 JUMP IN DOMESTIC ORDERS THIS WAS THE BEST FIRST QUARTER SINCE 1980 SAID THE ASSOCIATION OF MANUFACTURING TECHNOLOGY AN INDUSTRY GROUP THAT COMPILES THE DATA NEW CAPITAL SPENDING FORECASTS BY US MANUFACTURERS SHOULD TRANSLATE INTO A GOOD 1994 FOR THE INDUSTRY SAID ALBERT W MOORE PRESIDENT OF THE ASSOCIATION MACHINETOOL ORDERS ARE CONSIDERED AN INDICATOR OF FUTURE ECONOMIC ACTIVITY BECAUSE THE PRODUCTS ARE ORDERED UP TO 18 MONTHS BEFORE BEING SHIPPED MACHINE TOOLS CUT AND FORM METAL PARTS FOR A WIDE RANGE OF INDUSTRIES MANUFACTURERS ARE BUYING FOR 1995 AND 1996 SAID WILLIAM G COPELAND PRESIDENT OF COPELAND ECONOMICS IN STAMFORD CONN HE NOTED THAT MANUFACTURERS ARE RUNNING AT 83 OF THEIR FACTORY CAPACITY UTILIZATION NEAR THE 15YEAR HIGH OF 85 ACHIEVED IN 1988 AS A RESULT OF AN EXPANDED MANUFACTURING WORK WEEK AND INCREASED OVERTIME THERE IS ALSO A LOT OF CORPORATE CATCHUP IN TERMS OF PUTTING NEW TECHNOLOGY ON THE FACTORY FLOOR HE ADDED ELI S LUSTGARTEN AN ANALYST WITH PAINEWEBBER INC SAID INCREASED MACHINE TOOL ORDERS ARE BEING DRIVEN MOSTLY BY THE AUTOMOTIVE INDUSTRY HE ADDED THAT SMALL MACHINE SHOPS WHICH SERVICE A WIDE BASE OF NICHE MANUFACTURERS WERE ALSO CONTRIBUTING TO THE INCREASED ORDERS OUR ORDERS COMPARED TO LAST YEAR ARE DEFINITELY UP SAID ROBERT RIETHMAN TREASURER OF MONARCH MACHINE TOOL INC IN SIDNEY OHIO APRIL IS APPEARING TO BE STRONG AND LOOKS LIKE IT STRONG ORDER FLOW IS GOING TO CONTINUE THOUGH KEEP IN MIND LAST YEAR WAS A PRETTY PATHETIC YEAR THE MARCH INCREASE IN DEMAND WAS ALSO REFLECTED IN ORDERS TO THE NATION'S MACHINETOOL DISTRIBUTORS ACCORDING TO AN INDEX BASED ON ORDERS OVER A THREEYEAR PERIOD DISTRIBUTORS' ORDERS IN MARCH ROSE 31 FROM FEBRUARY AND 11 FROM MARCH 1993 ACCORDING TO THE AMERICAN MACHINE TOOL DISTRIBUTORS' ASSOCIATION AT NUCOR INC A TROY MICHBASED MACHINETOOL MAKER CUSTOMERS IN BOTH AUTOMOTIVE AND APPLIANCE INDUSTRIES APPEAR TO BE FOLLOWING THROUGH ON THEIR STRONG CAPITAL SPENDING PLANS SAID JOHN GARBER CHIEF FINANCIAL OFFICER OUR OUTLOOK IS VERY GOOD ORDERS FOR MACHINETOOL EXPORTS HOWEVER CONTINUE TO SAG AS A RESULT OF EXCESS CAPACITY IN JAPAN AND CONTINUED WEAKNESS IN EUROPEAN ECONOMIES EXPORTS FELL 47 FROM FEBRUARY TO 9 MILLION FROM 169 MILLION COMPARED WITH THE 1993 FIRST QUARTER THIS YEAR'S QUARTERLY EXPORT SALES PLUMMETED 63 TO 367 MILLION SLUGGISH EXPORTS ARE ALSO RESULTING IN INCREASED PRICE COMPETITION IN THE US AS DOMESTIC AND FOREIGN MACHINETOOL MAKERS VIE FOR A GREATER SHARE OF AN EXPANDING MARKET PAINEWEBBER'S MR LUSTGARTEN SAID COMPARATIVE NEW ORDERS FOR METALCUTTING MACHINES 9404250139 940425 TECHNOLOGY & ENVIRONMENT MICROSOFT IS EASING ACCESS TO WINDOWS BY SOFTWARE FIRMS BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL REDMOND WASH MICROSOFT CORP TRYING TO DEFUSE A POTENTIALLY NASTY DISPUTE WITH A RIVAL SOFTWARE MAKER SAID IT WILL RELAX CONDITIONS UPON WHICH IT SHARES PRELIMINARY EDITIONS OF ITS FORTHCOMING VERSION OF WINDOWS THE FUTURE VERSION OF THE COMPANY'S WINDOWS PROGRAM CODENAMED CHICAGO IS EXPECTED TO BE RELEASED IN FINAL FORM ABOUT THE END OF THIS YEAR AND IT IS CONSIDERED LIKELY TO BECOME THE STANDARD MEANS OF CONTROLLING BASIC OPERATIONS OF A PERSONAL COMPUTER MAKERS OF APPLICATIONS PROGRAMS SUCH AS WORD PROCESSORS AND SPREADSHEETS ARE EAGER TO WORK WITH PRELIMINARY VERSIONS OF CHICAGO MICROSOFT HAS DISTRIBUTED COPIES OF THESE SOCALLED BETA VERSIONS TO ABOUT 8000 SOFTWARE MAKERS IN A FEW CASES MICROSOFT THE LARGEST SUPPLIER OF PC SOFTWARE INSISTED THAT RECIPIENTS OF THESE BETA VERSIONS BAR ACCESS TO EMPLOYEES WORKING ON A TECHNIQUE CALLED OPENDOC THAT THREATENS TO SUPPLANT A MICROSOFTBACKED APPROACH TO LINKING DISPARATE APPLICATIONS WORDPERFECT CORP A CLOSELY HELD SOFTWARE MAKER IN OREM UTAH COMPLAINED TO MICROSOFT LAST WEEK THAT IT DOESN'T WANT ITS EMPLOYEES WHO ARE WORKING ON OPENDOC TO BE SUBJECT TO THE CHICAGO RESTRICTIONS AS PART OF THOSE RESTRICTIONS MICROSOFT ASKED THAT WORDPERFECT EMPLOYEES NOT EXAMINE COPIES OF CHICAGO FOR THREE YEARS IN AN UNUSUAL CONCESSION HOWEVER FIERCELY COMPETITIVE MICROSOFT AGREED TO DROP THE PROVISION FROM A STANDARD NONDISCLOSURE CONTRACT WHICH THE COMPANY ASKS ALL RECIPIENTS OF BETA VERSIONS TO SIGN ALTHOUGH THE COMPANY ALREADY WON AGREEMENTS FROM BORLAND INTERNATIONAL INC AND LOTUS DEVELOPMENT CORP TO ABIDE BY THE PROVISION MICROSOFT SAID ON FRIDAY THAT IT WILL RESCIND THIS RESTRICTION IF BORLAND AND LOTUS REQUEST THE CONCESSION COMES AT A DELICATE TIME FOR MICROSOFT WHOSE STORMY RELATIONSHIPS WITH RIVALS HAVE LED TO SERIOUS ACCUSATIONS ABOUT UNFAIR COMPETITION THE JUSTICE DEPARTMENT IS INVESTIGATING POSSIBLE ANTITRUST VIOLATIONS BY MICROSOFT WHICH HAS BEEN ACCUSED OF USING ITS DOMINANCE IN BASIC PC SOFTWARE TO SQUEEZE SMALLER COMPANIES WHO MUST RELY ON MICROSOFT FOR TIMELY INFORMATION ABOUT NEW FEATURES IN ITS DOS AND WINDOWS SOFTWARE 9404250138 940425 WHO'S NEWS CYTEC INDUSTRIES INC CYTEC INDUSTRIES INC WEST PATERSON NJ JAMES G AFFLECK WAS NAMED A DIRECTOR OF THIS MANUFACTURER AND MARKETER OF SPECIALTY CHEMICALS EXPANDING THE BOARD TO SIX MR AFFLECK A FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF AMERICAN CYANAMID CO ALSO SERVES AS A DIRECTOR AT PRUDENTIAL INSURANCE CO OF AMERICA 9404250137 940425 TECHNOLOGY & ENVIRONMENT HOME SHOPPING NETWORK TO OFFER WARES ON PRODIGY BY JARED SANDBERG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TELEVISION RETAILER HOME SHOPPING NETWORK INC AND PRODIGY SERVICES CO ARE EXPECTED TO ANNOUNCE TODAY A NEW STOREFRONT IN CYBERSPACE HOME SHOPPING NETWORK WHICH REACHES 60 MILLION CABLE HOMES WILL BEGIN OFFERING PRODUCTS OVER PRODIGY'S ONLINE COMPUTER SERVICE NEXT SEPTEMBER CYBERSHOPPERS WILL BE ABLE TO CHAT WITH THE NETWORK'S TV HOSTS AND VIEW PHOTOS OF GOODS INCLUDING ELECTRONICS CLOTHING AND JEWELRY OVER THE PRODIGY SERVICE A JOINT VENTURE BETWEEN INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO TERMS OF THE DEAL WEREN'T DISCLOSED JEFF GENTRY PRESIDENT OF HSN PRODUCTS INC SAID THE COMPANY JOINED THE SERVICE TO FOSTER A SENSE OF COMMUNITY AMONG ITS CUSTOMERS WE BELIEVE THE ONLINE SERVICES WILL BE THE ENTRYWAY TO INTERACTIVE TV ACCESS MR GENTRY SAID INDEED WHILE TV VIEWERS MUST ENDURE A DECIDEDLY PASSIVE APPROACH TO THE TV VERSION WAITING FOR HOSTS TO TROT OUT CERTAIN PRODUCTS THE ONLINE OFFERING WILL LET USERS CHOOSE TO SEE ANY PRODUCTS AT RANDOM TYPICALLY ONLINE SHOPPING HAS DRAWN RELATIVELY FEW CUSTOMERS BOB SHAPIRO PRODIGY'S VICE PRESIDENT OF COMMERCIAL MARKETING SAID 10 OF CUSTOMERS ON THE SERVICE WHICH REACHES 11 MILLION HOUSEHOLDS BROWSE THROUGH ITS ADS AND SHOPPING FEATURES MARY MODAHL AN ANALYST FOR FORRESTER RESEARCH INC SAID THAT ONE PROBLEM IS THAT PRODUCT INFORMATION HAS BEEN PRESENTED MOSTLY IN TEXT WITHOUT PHOTOGRAPHS SHOPPING HAS BEEN CLEARLY UNDERUTILIZED SHE SAID BY AND LARGE ONLINE SALES ARE PIDDLING SEPARATELY NEWS CORP IS EXPECTED TO ANNOUNCE TODAY THAT IT HAS ACQUIRED KESMAI CORP AN ONLINE GAME MANUFACTURER THAT WILL OFFER MULTIPLAYER GAMES OVER DELPHI INTERNET SERVICES A UNIT OF NEWS CORP TERMS OF THE DEAL WEREN'T DISCLOSED THE CHARLOTTESVILLE VA ENTERTAINMENT FIRM ALREADY OFFERS ONLINE GAMES OVER DELPHI RIVALS COMPUSERVE INFORMATION SERVICES A UNIT OF H&R BLOCK CO AND GENIE INFORMATION SERVICES A UNIT OF GENERAL ELECTRIC CO EVEN AFTER THE ACQUISITION KESMAI WILL CONTINUE TO PROVIDE SOFTWARE TO RIVALS COMPUSERVE AND GENIE SAID BEN FETTER DIRECTOR OF INTERACTIVE MEDIA AT DELPHI 9404250136 940425 MOYNIHAN TO PUSH TO GET HEALTH BILL BY MEMORIAL DAY BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN REFLECTING PRESSURE FROM THE CLINTON ADMINISTRATION SAID HE WILL ATTEMPT TO REPORT A HEALTHCARE OVERHAUL BILL OUT OF HIS PANEL AS EARLY AS THE END OF NEXT MONTH THE PRESIDENT ASKED ME IF WE CAN GET A BILL OUT BY MEMORIAL DAY SAID THE NEW YORK DEMOCRAT WE'LL TRY THE PLAN WOULD BRING THE SCHEDULE FOR SENATE ACTION MORE IN LINE WITH THAT OF HOUSE COMMITTEES BUT MEETING THE NEW DEADLINE WILL BE DIFFICULT IF ONLY BECAUSE OF THE BURDEN IT IMPOSES ON THE CONGRESSIONAL BUDGET OFFICE WHICH ALREADY HAS FALLEN BEHIND IN PROVIDING COST ESTIMATES TO LAWMAKERS THE BUDGET OFFICE HAS EMERGED AS A GATEKEEPER OF SORTS FOR THE HEALTHCARE DEBATE WITHOUT ITS NUMBERS NO COMMITTEE CAN GO FAR THE VERY COMPLEXITY OF THE HEALTH ISSUE ADDS TO THE PROBLEM WHILE TAX AND BUDGET BILLS IN RECENT YEARS HAVE FOCUSED ON FAMILIAR OPTIONS THE HEALTH DEBATE TAKES THE OFFICE INTO NEW TERRITORY REQUIRING MORE TIME TO TEST COSTS ACCURATELY AND ASSESS HOW DIFFERENT COMPROMISE PROPOSALS AFFECT ONE ANOTHER THE LEGISLATIVE CALENDAR FOR MAY ALREADY INCLUDES PLANS BY THE HOUSE ENERGY AND COMMERCE AND WAYS AND MEANS COMMITTEES TO REPORT BILLS BY MEMORIAL DAY HOUSE DEMOCRATS ARE SKITTISH ABOUT GETTING TOO FAR AHEAD OF THE SENATE WHICH MIGHT UNDERCUT THEM ON TOUGH VOTES THE BUDGET OFFICE WILL BE HARDPRESSED TO SERVE THIS MANY COMMITTEES AT ONCE APPEARING ON ABC NEWS' THIS WEEK WITH DAVID BRINKLEY MR MOYNIHAN SAID A BIPARTISAN MAJORITY IN HIS PANEL SUPPORTS UNIVERSAL HEALTH CARE AS A PRINCIPLE BUT HE SIDESTEPPED ANY DETAILED DISCUSSION OF HOW THE AMBITIOUS INITIATIVE WILL BE FINANCED THE TELEVISED INTERVIEW FOLLOWED A SPEECH FRIDAY BY WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI TESTING THE NOTION OF A BROADBASED TAX INCREASE TO PAY FOR THE INITIAL COSTS OF HEALTH REFORM UNTIL COSTCONTAINMENT MEASURES TAKE EFFECT IN RESPONSE TO QUESTIONS AFTER HIS REMARKS IN BOSTON THE ILLINOIS DEMOCRAT SAID AN INCREASE IN PERSONAL INCOME TAXES WOULD BE ONE WAY OF RAISING THE ADDITIONAL REVENUE HE ALSO SAID HE FAVORED ADDING TO AN EXISTING TAX RATHER THAN ADOPTING AN ENTIRELY NEW LEVY ASKED WHERE HE WOULD GET NEW REVENUES TO PAY FOR HEALTHCARE OVERHAUL MR MOYNIHAN SAID WE'RE GOING TO HAVE TO GET IT SOMEWHERE BECAUSE WE DON'T HAVE ANY NOW 9404250135 940425 TECHNOLOGY & ENVIRONMENT EPA MAY ALLOW VENEZUELA TO SIDESTEP CLEANAIR RULE ON GASOLINE IMPORTS BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY PROPOSED A REVISION TO A CLEANAIR RULE AFFECTING IMPORTS OF VENEZUELAN GASOLINE UNDER THE NEW PROPOSAL TO BE PUBLISHED IN THE FEDERAL REGISTER THIS WEEK VENEZUELA CAN PETITION THE EPA TO ALLOW IT TO AVOID COSTLY CONTROLS ON GASOLINE THAT WILL BE IMPORTED TO CERTAIN US CITIES STARTING IN 1995 BUT THE EPA COULD GIVE VENEZUELA THE LATITUDE IT SEEKS ONLY FOR A QUANTITY OF GASOLINE MATCHING ITS 1990 LEVEL OF IMPORTS ADDITIONAL IMPORTS WOULD BE REGULATED MORE STRICTLY UNDER AN EARLIER VERSION OF THE CLEANAIR RULE ISSUED IN DECEMBER SOME FOREIGN GASOLINE FACED STRICTER CONTROLS THAN DOMESTIC GASOLINE PRODUCERS VENEZUELA OBJECTED TO THE RULE HOWEVER AND FILED A CHALLENGE UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN RESPONSE THE EPA IN A HIGHLY UNUSUAL MOVE SAID IT WOULD REVISE THE RULE EVEN THOUGH IT HAD ALREADY BEEN ISSUED IN FINAL FORM THE DECEMBER RULE VENEZUELA CONTENDS WOULD REDUCE THE VALUE OF ITS EXPORTS TO THE US BY 150 MILLION LAST YEAR VENEZUELAN GASOLINE EXPORTS TO THE US TOTALED 478 MILLION BUT ALTERATION OF THE RULE IS VIGOROUSLY OPPOSED BY SUN CO PHILADELPHIA AND SEVERAL OTHER DOMESTIC OIL COMPANIES THAT COMPETE WITH STATEOWNED PETROLEOS DE VENEZUELA SA SOME ENVIRONMENTALISTS HAVE EXPRESSED CONCERN THAT THE NEW VERSION OF THE RULE WILL LEAD TO INCREASED SMOG IN THE NORTHEAST BUT THE EPA CONTENDS THAT THE RULE WOULD LEAD TO ONLY A 018 INCREASE IN NITROUS OXIDE A COMPONENT OF SMOG IN THAT REGION AND THAT VENEZUELAN OIL CONTAINS FEWER VOLATILE ORGANIC COMPOUNDS ANOTHER COMPONENT OF SMOG THAN DOES ITS US COUNTERPARTS SEN MAX BAUCUS D MONT AFTER A HEARING ON THE MATTER FRIDAY SAID IN A STATEMENT THAT THE EPA TOOK AN IRRESPONSIBLE ACTION IN ISSUING A RULE THAT WOULD ALLOW VENEZUELA TO EXPORT DIRTY GASOLINE INTO AREAS OF THE COUNTRY WITH THE WORST AIR POLLUTION BUT AT THE HEARING MARY NICHOLS THE EPA'S ASSISTANT ADMINISTRATOR FOR AIR AND RADIATION DEFENDED THE DECISION AND DENIED THAT THE AGENCY HAD CAVED IN TO PRESSURE FROM THE WHITE HOUSE AND THE US TRADE REPRESENTATIVE ON THE MATTER SHE SAID SHE ARRIVED AT HER DECISION AFTER REVIEWING DOCUMENTATION PROVIDED BY VENEZUELA THAT SHE DIDN'T HAVE A CHANCE TO FULLY ANALYZE BEFORE THE ISSUING OF THE DECEMBER RULE THE EPA SAID A PUBLIC HEARING ON THE PROPOSAL WILL BE HELD MAY 23 IN WASHINGTON AND THAT A 30DAY COMMENT PERIOD ON THE RULE WILL END ONE MONTH LATER A FINAL RULE IS EXPECTED TO BE ISSUED IN THE FALL 9404250134 940425 OPTA SETS PRIVATE PLACEMENT BEDFORD MASS OPTA FOOD INGREDIENTS INC SAID IT AGREED TO SELL TO INSTITUTIONAL INVESTORS IN A PRIVATE PLACEMENT 2274000 UNITS THAT WILL RAISE 10 MILLION THE UNITS WHICH WILL BE SOLD FOR 475 EACH CONSIST OF ONE SHARE OF COMMON AND ONEHALF OF A STOCKPURCHASE WARRANT THE THREEYEAR WARRANTS PERMIT PURCHASE OF A SHARE FOR 5 IN THE FIRST YEAR 6 IN THE SECOND YEAR AND 7 IN THE THIRD YEAR THE PRODUCER OF FAT AND OIL SUBSTITUTES WILL USE PROCEEDS TO SPEED COMMERCIALIZATION OF ITS PRODUCTS THE PLACEMENT WAS ARRANGED BY ROBERTSON STEPHENS & CO AND WESSELS ARNOLD & HENDERSON LP 9404250133 940425 BUSINESS BRIEF EXXON NET SLID 2 AS MOBIL'S ROSE 9 IN 1ST QUARTER DESPITE LOWER OIL PRICES DESPITE A 25 DECLINE IN OIL PRICES EXXON CORP'S NET INCOME SLID JUST 2 AND MOBIL CORP'S PROFIT ROSE 9 IN THE FIRST QUARTER THE RESULTS OF THE NATION'S FIRST AND SECONDLARGEST OIL COMPANIES RESPECTIVELY EXCEEDED MOST WALL STREET EXPECTATIONS THEY CAME ON TOP OF A 16 INCREASE IN OPERATING PROFIT FROM AMOCO CORP THE FIRST LARGE INTERNATIONAL OIL COMPANY TO UNVEIL LAST QUARTER'S EARNINGS FOR EXXON AND MOBIL THE STRONG SHOWING IN THE FACE OF A PLUNGE IN THE INDUSTRY'S MAJOR COMMODITY CRUDE OIL TO FIVEYEAR LOWS REFLECTS THE BENEFITS OF WIDESCALE COSTCUTTING IN RECENT YEARS AS WELL AS IMPROVEMENTS IN OTHER MARKETS BOTH COMPANIES BENEFITED FROM STABLE NATURAL GAS PRICES IN THE US AND ELSEWHERE AND WERE ABLE TO BOOST THEIR OUTPUT OF GAS LUCIO NOTO THE RECENTLY ELECTED CHAIRMAN OF MOBIL CREDITED INCREASED PROFIT TO THE CONTINUED FOCUS ON THE FUNDAMENTALS OF OUR BUSINESS THAT ARE UNAFFECTED BY THE PRICE OF CRUDE OIL BESIDES REDUCED OVERHEAD AND NATURAL GAS SALES MR NOTO CITED A 5 RISE IN MOBIL'S PRODUCTION OF CRUDE OIL AND NATURAL GAS LIQUIDS A 5 INCREASE IN PETROLEUM PRODUCT SALES WORLDWIDE WITH EVEN LARGER GROWTH IN THE PACIFIC RIM AND LOWER FINANCING COSTS IT'S GOING TO BE A PRETTY IMPRESSIVE FIRST QUARTER FOR THE INDUSTRY IN LIGHT OF THE OIL PRICE SAID PAUL TING ANALYST AT OPPENHEIMER & CO IN NEW YORK CRUDE PRICES HELD AROUND 15 A BARREL MUCH OF THE QUARTER ALTHOUGH THEY HAVE EDGED CLOSER TO 17 RECENTLY MR TING AND SEVERAL OTHER ANALYSTS STILL EXPECT EARNINGS DECLINES FROM OTHER OIL COMPANIES BECAUSE THEIR MIX OF ASSETS AND OPERATIONS IS MORE HEAVILY INFLUENCED BY CRUDE OIL PRODUCTION AND THE DROP IN PRICES MR TING PREDICTED DECREASES FROM CHEVRON CORP TEXACO INC UNOCAL CORP AND ATLANTIC RICHFIELD CO HE ALSO SAID MOST MAJOR OIL COMPANIES MISSED OUT SOMEWHAT ON STRONG DOMESTIC REFINING AND MARKETING MARGINS BECAUSE THEY HAD SHUT DOWN SOME OF THEIR PLANTS FOR MAINTENANCE IN THE QUARTER EXXON BASED IN IRVING TEXAS HAD NET INCOME OF 116 BILLION OR 92 CENTS A SHARE DOWN FROM 119 BILLION OR 94 CENTS A SHARE A YEAR EARLIER EXXON HAD 66 MILLION OF GAINS IN THE LATEST QUARTER AND 47 MILLION OF GAINS IN THE 1993 QUARTER REVENUE FELL 48 TO 2597 BILLION FROM 2726 BILLION EXXON'S CRUDE OIL AND NATURAL GAS LIQUIDS PRODUCTION ROSE 4 IN THE QUARTER AND NATURAL GAS OUTPUT ROSE 3 LEE RAYMOND CHAIRMAN SAID CHEMICAL EARNINGS ALSO ROSE AS A MODEST IMPROVEMENT IN ECONMIC CONDITIONS IN MAJOR MARKETS LED TO INCREASED DEMAND AND BETTER MARGINS IN ALEXANDRIA VA MOBIL SAID NET INCOME ROSE TO 535 MILLION OR 131 A SHARE FROM 490 MILLION OR 119 A SHARE A YEAR EARLIER REVENUE WAS 1512 BILLION UP FROM 1506 BILLION 9404250131 940425 CORPORATE FOCUS AMID SHARE SLUMP MARKET RESEARCHER PLAYS PATCHUP' INFORMATION RESOURCES SIZES UP THE COMPETITION AND ITS OWN STRATEGIES BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL DAVID IS INFORMATION RESOURCES INC ONCE THE NIMBLE LITTLE DYNAMO THAT DANCED OVER GOLIATH NIELSEN MARKETING RESEARCH AND ENTICED SCORES OF CLIENTS FROM THE DUN & BRADSTREET CORP UNIT BUT IN THE PAST THREE MONTHS DAVID HAS FALLEN TWICE LARGELY FROM SELFINFLICTED WOUNDS IN FEBRUARY AND AGAIN EARLY THIS MONTH MANAGEMENT CONCEDED ITS EARNINGS OUTLOOK WAS TOO OPTIMISTIC NIELSEN SUDDENLY HAD BECOME INTENSELY COMPETITIVE RETAINING CUSTOMERS AND REVENUE THAT IRI EXPECTED TO GRAB MOREOVER OVERSEAS EXPANSION WAS PROVING MORE EXPENSIVE THAN IRI HAD FORECAST AND IMPORTANT SOFTWARE ADVANCES WERE TAKING LONGER THAN HOPED THOSE REVELATIONS BRUISED MANAGEMENT'S CREDIBILITY AND BLED INVESTORS SINCE THE FIRST BADNEWS ANNOUNCEMENT IRI SHARES HAVE PLUNGED 65 TRADING AS HIGH AS 4175 IN LATE 1993 THE STOCK CLOSED FRIDAY AT 1375 DOWN 25 CENTS ON THE NASDAQ STOCK MARKET AFTER THE LATEST DOWNWARD EARNINGS REVISION TOP EXECUTIVES HIT THE ROAD TO TRY TO PATCH THINGS UP WITH INSTITUTIONAL INVESTORS THE SURPRISE IN EARNINGS DEFINITELY CAUGHT US OFF GUARD SAYS RAY HIRSCH PORTFOLIO MANAGER OF IDS FINANCIAL SERVICES' DISCOVERY FUND IDS MUTUAL FUNDS HAVE SOLD ABOUT ONE MILLION SHARES OF IRI SINCE DECEMBER TO SUCH INVESTORS GIAN FULGONI IRI'S CHAIRMAN SAYS WE THINK IT'S CURRENT SHARE SLUMP AN EMOTIONALLY DRIVEN PRICE THAT DOESN'T REFLECT IN ANY WAY THE VALUE OF WHAT WE'VE GOT BUT THE STOCK'S FALL HAS FORCED CANCELLATION OF AN IMPORTANT ACQUISITION THAT WAS TO HAVE SECURED IRI A FOOTHOLD IN ASIA LAST FEBRUARY WHEN SHARES WERE TRADING AROUND 38 THE COMPANY SAID IT WAS ACQUIRING HONG KONGBASED SURVEY RESEARCH GROUP ASIA'S LARGEST MARKET RESEARCH COMPANY FOR 76 MILLION IN STOCK BUT AT TODAY'S PRICE THAT TRANSACTION WOULD REQUIRE 54 MILLION SHARES ONEFIFTH OF ALL THOSE OUTSTANDING RATHER THAN THE TWO MILLION CONTEMPLATED WHEN THE DEAL WAS ANNOUNCED RECENT EVENTS DICTATE THAT IRI NOW FOCUS ITS ATTENTION AND RESOURCES ON THE SUCCESSFUL EXPANSION OF OUR INFORMATION BUSINESSES IN EUROPE NORTH AMERICA AND SELECTED OTHER GEOGRAPHIC AREAS THE COMPANY SAID LAST WEEK IRI SAID RELATED EXPENSES WOULD REDUCE FIRSTQUARTER EARNINGS ANOTHER THREE CENTS A SHARE ANALYSTS WHO FOLLOW THE INDUSTRY REMAIN BULLISH ON IRI LONGTERM BUT ARE CAUTIOUS ABOUT THE NEXT YEAR OR TWO ESPECIALLY AS THE COMPANY SEEKS TO GO GLOBAL TO REGAIN EARNINGS MOMENTUM IRI'S MANAGEMENT IS MAKING A STRATEGIC UTURN IT'S PULLING OUT OF AN INCREASINGLY COSTLY BIDDING WAR FOR NEW CLIENTS TO BETTER SERVE THOSE IT HAS BUT SOME QUESTION THE COMPANY'S ABILITY TO DISENGAGE IF EITHER ONE WANTS TO GAIN MORE DOMESTIC MARKET SHARE THEY'RE GOING TO HAVE TO GET INTO A PRICING WAR SAYS RON SIT OF MINNEAPOLISBASED SIT INVESTMENT ASSOCIATES SPURRED BY ITS PARENT TO SHAPE UP NIELSEN HAS LATELY USED ATTRACTIVE PRICING TO KEEP CLIENTS AND TO LURE OTHERS FROM IRI IN SOME WAYS THE TWO COMPANIES ARE LIKE CARRENTAL AGENCIES OFFERING SIMILAR PRODUCTS FOR WHICH PRICE BECOMES AN IMPORTANT DISTINCTION IRI PROSPERED IN THE LATE 1980S BY RECOGNIZING THE POTENTIAL OF CHECKOUT COUNTER SCANNERS TODAY IT AND NIELSEN SPLIT THE CLIENTELE OF CONSUMER PACKAGEDGOODS COMPANIES WHO NEED BARCODE SALES DATA TO CHECK THE PULSE OF PRODUCTS MAKE MARKETING DECISIONS AND FASHION APPEALING ADVERTISING IRI CALLS THE SCANNERDATA PART OF ITS BUSINESS INFOSCAN A SERVICE SOLD TO ABOUT 740 US CLIENTS THE WALL STREET JOURNAL USES INFOSCAN IN ITS TWICEWEEKLY MARKETSCAN FEATURE ON CONSUMERPRODUCT TRENDS THE CHICAGOBASED COMPANY ALSO PROVIDES SOPHISTICATED DECISIONSUPPORT SOFTWARE TO CLIENTS LIKE AMERICAN AIRLINES U S WEST AND THE WORLD BANK FOR USE IN FINANCIAL PLANNING AND EMPLOYEEBENEFITS PROGRAMS LAST YEAR THOSE SERVICES REAPED 1066 MILLION IN REVENUE OR NEARLY A THIRD OF IRI'S TOTAL OF 3345 MILLION BECAUSE SOFTWARE DEVELOPMENT IS SO VITAL TO IRI'S FUTURE THE COMPANY IS LETTING ITS CHIEF OPERATING OFFICER WORK FULLTIME ON IT AMID EMBARRASSING DELAYS IN ROLLING OUT WINDOWS VERSIONS OF SOFTWARE PREVIOUSLY WRITTEN FOR DOSBASED COMPUTERS IRI CONCEDES SOME DECISIONSUPPORT CLIENTS BOUGHT WINDOWS SOFTWARE FROM COMPETITORS MEANWHILE NIELSEN IS RAISING IRI'S HACKLES BY BOASTING IN TRADEPUBLICATION ADS THAT IT'S PROVIDING GROCERS AND MANUFACTURERS WITH BETTER DATABASED TOOLS TO WORK ON EFFICIENT CONSUMER RESPONSE AN EFFORT TO SQUEEZE BILLIONS OF WASTED DOLLARS FROM THE PRODUCT PIPELINE MR FULGONI POOHPOOHING NIELSEN'S CLAIMS SAYS ECR COULD CONTRIBUTE AS MUCH AS 8 MILLION TO IRI'S EARNINGS BY THE END OF NEXT YEAR WALL STREET THINKS MOST OF IRI'S GROWTH POTENTIAL IS ABROAD BUT GROWTH THERE IS LIKELY TO BE MORE CHALLENGING SINCE NIELSEN HAS BEEN ENTRENCHED OVERSEAS FOR YEARS IN FACT IRI ESTIMATES 70 OF NIELSEN'S SALES ARE ABROAD IN PARING FIRSTQUARTER ESTIMATES IRI SAID IT HAD ENCOUNTERED SLIGHTLY HIGHER THAN ANTICIPATED LOSSES ABROAD BECAUSE OF THE COMPLEXITY OF PROPHESYING EUROPEAN SCANNING NEEDS AS FOR THE COMPANY'S BALANCE SHEET CHAIRMAN FULGONI SAYS A NEW 50 MILLION CREDIT LINE WITH HARRIS BANK OF CHICAGO WILL BE ADEQUATE FOR OUR NEARTERM NEEDS BUT DEAN WITTER REYNOLDS ANALYST JAMES DOUGHERTY CALCULATES THAT THE COMPANY WILL BURN PERHAPS 60 MILLION IN CASH THIS YEAR AND NEXT WHICH MEANS THEY'RE GOING TO WIND UP AT THE END OF 1995 WITH 50 MILLION IN DEBT AND 10 MILLION IN CASH AT THAT POINT THEY'RE GOING TO HAVE TO DO SOMETHING ELSE BORROW MORE OR DO EQUITY REPLIES MR FULGONI IF WE PERFORM ALONG THE PLAN WE'VE LAID OUT WE WILL START GENERATING CASH IN 1995 A LONGTIME IRI BEAR MR DOUGHERTY ALSO IS SKEPTICAL OF THE COMPANY'S FUTURE EARNINGS POWER ONCE YOU GET OUT PAST 1995 THEY'RE LEADING PEOPLE TO UNREALISTICALLY HIGH EXPECTATIONS HE SAYS AS FOR THE NEARTERM ESTIMATES 60 CENTS TO 65 CENTS THIS YEAR MOST ANALYSTS ARE CONFIDENT THE COMPANY WILL DELIVER THEY'RE BEING DULY VERY CONSERVATIVE SO MY LEVEL OF COMFORT FOR THIS YEAR AND NEXT IS PRETTY GOOD SAYS RITA SPITZ OF WILLIAM BLAIR & CO WHILE SHE SAYS MANAGEMENT ISN'T GIVING GUIDANCE ON WHAT THE NEW WINDOWS PRODUCTS MIGHT CONTRIBUTE THE OVERALL SOFTWARE BUSINESS IS EXPECTED TO RESUME A 20 ANNUAL REVENUE GROWTH RATE BY YEAR END INFOSCAN IS FORECAST TO GROW BY 16 TO 17 ANNUALLY ALEXANDER PARIS JR OF BARRINGTON RESEARCH IS ALSO BULLISH ON THE INDUSTRY LONGTERM AS RETAILERS AND MANUFACTURERS SEEK TO BECOME MORE EFFICIENT THE DEMAND FOR MARKETING INFORMATION WILL EXPLODE HE SAYS IT'S A NEEDED TECHNOLOGY WILL IRI BE THE COMPANY THAT WINS I THINK THIS MARKET WILL CONTINUE TO BE SPLIT 9404250130 940425 MARKETING & MEDIA MCDONALD'S TALKS TO RECORD COMPANIES ABOUT PROMOTIONS USING CDS CASSETTES BY JEFFREY A TRACHTENBERG AND RICHARD GIBSON STAFF REPORTERS OF THE WALL STREET JOURNAL MCDONALD'S CORP IS NEGOTIATING WITH SEVERAL MAJOR RECORD COMPANIES TO LAUNCH ITS FIRST INSTORE PROMOTION INVOLVING THE SALE OF COMPACT DISKS AND CASSETTES AT A REDUCED RATE WITH A MENU PURCHASE ALTHOUGH ALL THE DETAILS HAVEN'T YET BEEN RESOLVED PEOPLE FAMILIAR WITH THE TALKS SAY MCDONALD'S IN RECENT WEEKS HAS HELD SERIOUS DISCUSSIONS WITH EMI RECORDS GROUP NORTH AMERICA A UNIT OF THORN EMI PLC WHOSE TOP ARTISTS INCLUDE COUNTRY SINGER GARTH BROOKS AND BONNIE RAITT IF A PACT IS REACHED IT IS EXPECTED THAT MCDONALD'S WILL SPEND MORE THAN 10 MILLION ADVERTISING THE PROMOTION AND SELL COMPACT DISKS AND CASSETTES AT REDUCED PRICES AT 9300 US RESTAURANTS MCDONALD'S BASED IN OAK BROOK ILL AND NEW YORKBASED EMI RECORDS BOTH DECLINED TO COMMENT ALTHOUGH THE PROMOTION IS CLEARLY AIMED AT BUILDING TRAFFIC IN MCDONALD'S RESTAURANTS THOSE FAMILIAR WITH THE TALKS SAY THAT THE RONALD MCDONALD CHILDREN'S CHARITIES WILL BE THE PRIMARY BENEFICIARY OF THE MUSIC SALES MCDONALD'S ALREADY HAS ALERTED ITS AD AGENCIES OF THE POSSIBILITIES OF SUCH A PROMOTION IT WILL BE A NATIONAL FUNDRAISER ONE AGENCY EMPLOYEE SAID ALTHOUGH THIS APPEARS TO BE ONE OF THE FIRST TIMES THAT A MAJOR FASTFOOD RETAILER HAS OFFERED COMPACT DISKS AND CASSETTES AS PART OF A MAJOR PREMIUM NEXT MONTH BAUSCH & LOMB INC IS SPONSORING A GIFTWITHPURCHASE PROMOTION IN WHICH BUYERS OF RAYBAN SUNGLASSES WILL RECEIVE A COLLECTION OF BEATLES SONGS PERFORMED BY SUCH ARTISTS AS JOE COCKER ROD STEWART AND STEVIE WONDER IF THE TALKS ARE COMPLETED MCDONALD'S MAY FEATURE AS MANY AS HALFADOZEN ARTISTS AND SELL THE ALBUMS AS PART OF A PURCHASEWITHPURCHASE PROGRAM PRICES ON THE INDIVIDUAL CASSETTES AND COMPACT DISKS ARE EXPECTED TO BE WELL BELOW TYPICAL RETAIL LEVELS A MOVE THAT MAY UPSET MUSIC RETAILERS ALTHOUGH SENIOR EMI MUSIC EXECUTIVES HAVE WEIGHED SUCH A BACKLASH THEY ARE SAID TO BELIEVE THAT THE AD DOLLARS SPENT BY MCDONALD'S WILL SPUR SUBSTANTIAL SALES OF EACH ARTIST'S WORK AT RETAIL ANYTIME YOU SEE SOMEBODY SPENDING THIS KIND OF MONEY TO PROMOTE MUSIC IT DRIVES RETAIL SALES SAID ONE MUSIC INDUSTRY VETERAN THERE MAY BE SOME COMPLAINING THE FIRST COUPLE OF DAYS BUT IT WILL QUICKLY QUIET DOWN IN RECENT YEARS MCDONALD'S HAS SPONSORED PROMOTIONS FEATURING VIDEOS THE BESTKNOWN WAS A 1992 PURCHASEWITHPURCHASE PREMIUM INVOLVING DANCES WITH WOLVES AT THAT TIME MCDONALD'S OFFERED THE TAPE FOR 799 THE PROMOTION IRRITATED A NUMBER OF VIDEOSTORE RETAILERS BECAUSE THEIR PRICES WERE BEING UNDERCUT A FEW ENTERPRISING OPERATORS TOOK ADVANTAGE OF THE PROMOTION AND PURCHASED DOZENS OF THE TAPES AT MCDONALD'S RESTAURANTS AND PROMPTLY TURNED AROUND AND SOLD THEM AT A PROFIT IN THEIR OWN STORES 9404250129 940425 SMALL STOCK FOCUS SOME HEAVYDUTY SMALL STOCKS FACE PRESSURE BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL IF INTEREST RATES KEEP RISING THEY WILL CUT SHARPLY INTO THE PERFORMANCE OF SMALLCAPITALIZATION INDUSTRIAL STOCKS IN THE MONTHS AHEAD MONEY MANAGERS AND ANALYSTS SAY BUT THERE WILL BE SECTORS THAT PROVE RESILIENT AMID ANY OVERALL DECLINES THEY BELIEVE SMALLCAP INDUSTRIALS BENEFITING SOLELY FROM A CYCLICAL ECONOMIC RECOVERY ARE GOING TO BE HURT AS RISING RATES SLOW OVERALL DEMAND FOR CAPITAL GOODS SAYS MARY LISANTI SMALLCAP PORTFOLIO MANAGER AT BANKERS TRUST CO IN NEW YORK HARDEST HIT SHE SAYS WILL BE COMPANIES THAT BUILT PRICING INCREASES INTO THEIR BUSINESS MODELS A LARGE NUMBER OF SMALLCAP MANUFACTURING COMPANIES BASICALLY FIGURED THAT INFLATION WOULD GO UP AND THAT THEY WOULD GET A LITTLE PIECE OF THE ACTION BY PUSHING THROUGH PRICE INCREASES OF UP TO 6 SHE EXPLAINS BUT WHAT FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN IS TRYING TO DO IS TAKE PRICE INCREASES OUT OF THE SYSTEM THE BANKERS TRUST MONEY MANAGER WAS QUICK TO START PARING HER FUND'S HOLDINGS OF SMALLCAP MANUFACTURERS IN THE WAKE OF THE FED'S TWO MOVES TO RAISE SHORTTERM RATES IN THE FIRST QUARTER AMONG THE STOCKS DUMPED FROM THE PORTFOLIO WERE A HOST OF SUPPLIERS TO THE AUTOMOTIVE INDUSTRY STANT CORP BORGWARNER AUTOMOTIVE INC AND EXCEL INDUSTRIES WE HAD A BIG BET ON THE AUTOMOTIVE OUTSOURCING COMPANIES BUT WE FELT THAT IF THE FED WAS REALLY GOING TO TIGHTEN WE SAW THERE WOULD BE A PROBLEM MOVING INTO THE SECOND HALF SHE EXPLAINS OTHER HEAVYINDUSTRY SMALLCAP STOCKS CULLED FROM THE PORTFOLIO INCLUDE GREENFIELD INDUSTRIES INC A MAKER OF INDUSTRIAL CUTTING TOOLS AND ATCHISON CASTING CORP AN IRONCASTING GROUP ADDITIONAL CONCERNS OVER CHEAP IMPORTS LED HER TO UNLOAD A NUMBER OF SMALLCAP STEEL AND STEELPROCESSING STOCKS INCLUDING HUNTCO INC AND SHILOH INDUSTRIES MS LISANTI'S FAVORITE PICKS IN THE CURRENT ENVIRONMENT OF RISING INTEREST RATES IS A GROUP OF SEISMICRESEARCH COMPANIES THAT SUPPLY DATA SYSTEMS TO THE OILANDGAS EXPLORATION INDUSTRY INPUT/OUTPUT INC LANDMARK GRAPHICS CORP AND SEITEL INC WE LIKE THIS GROUP BECAUSE THEIR BUSINESS IS GLOBAL AND WE'RE TRYING TO FOCUS ON COMPANIES THAT HAVE GREAT EXPORT POSSIBILITIES SHE SAYS THESE THREE COMPANIES ATTEMPT TO IMPROVE THE RETURN ON INVESTMENTS FOR DRILLERS AROUND THE WORLD MS LISANTI SAYS SHE'S STICKING WITH MOST OF HER SMALLCAP TECHNOLOGY PICKS BECAUSE TECHNOLOGY AS A GROUP IS STILL LOWERING PRICES NOT RAISING THEM AMID FIERCE COMPETITION IN THE SEMICONDUCTOR COMPUTER AND TELECOMMUNICATION SECTORS MOREOVER SHE ASSERTS SEMICONDUCTORS WILL CONTINUE TO DO WELL BECAUSE DEMAND FOR CHIPS CONTINUES TO BE STRONGTHEY'RE BEING USED IN BROAD APPLICATIONS TO THE POINT WHERE EVEN IF WE GET A SLOWDOWN IN THE ECONOMY THEIR EXPANDED USE MAY JUST OVERWHELM ANY NEGATIVE IMPACT FROM HIGHER RATES OTHER SMALLCAP MONEY MANAGERS AND ANALYSTS ARE MORE SANGUINE ABOUT THE EFFECTS OF A SLOWING ECONOMY THEIR LARGER CONCERN IS THE THREAT THAT HIGHER INTEREST RATES POSE TO THE BALANCE SHEETS OF A LARGE NUMBER OF HIGHLY LEVERAGED SMALLCAP MANUFACTURERS NOTES JERRY LEVINE DIRECTOR OF RESEARCH AT COMMONWEALTH ASSOCIATES IN NEW YORK WE'VE ALWAYS LEANED TOWARD THE SMALLCAP SERVICE SECTOR WE FIND THAT SMALLCAP MANUFACTURERS TEND TO BE HIGHLY CYCLICAL AND THEREFORE VULNERABLE TO THE INTERESTRATE ENVIRONMENT AND INVENTORY BUILDUPS SELECTIVITY IS THE KEY TO THIS MARKET HE SAYS YOU WANT TO EXAMINE THE BALANCE SHEET AND SEE HOW LEVERAGED A COMPANY IS BASICALLY YOU WANT WELLFINANCED COMPANIES THAT DON'T HAVE TO GO TO THE DEBT MARKET TO RAISE CAPITAL MR LEVINE SAYS HE'S STICKING WITH HIS FAVORITE SMALLCAP INDUSTRIAL PICK AAON INC A MANUFACTURER OF COMMERCIAL AIRCONDITIONING AND HEATING SYSTEMS DESPITE THE COMPANY'S RELATIVELY HIGH DEBT LEVELS AAON'S STOCK HAS BEEN A SOLID PERFORMER OVER THE PAST SEVERAL MONTHS MOVING UP ON STRONG FIRSTQUARTER EARNINGS OF 19 CENTS A SHARE AGAINST SEVEN CENTS A YEAR EARLIER ANALYSTS HAD EXPECTED 17 CENTS A SHARE FOR THE QUARTER AAON IS FAIRLY HEAVILY LEVERAGED BUT ITS EARNINGS GROWTH HAS BEEN SO SIGNIFICANT THAT I THINK IT CAN VIRTUALLY OFFSET ANY IMPACT OF HIGHER INTEREST EXPENSES AT NFJ INVESTMENT GROUP IN DALLAS ANALYSTS ARE TAKING A CAUTIOUS APPROACH TO SMALLCAP CYCLICALS IT'S DIFFICULT TO MEASURE THE INTERESTRATE SENSITIVITY OF SMALLCAP INDUSTRIAL STOCKS SAYS PAUL MAGNUSON SENIOR RESEARCH ANALYST UP UNTIL THE LATTER PART OF MARCH THEIR SHARE PRICES WERE RISING WHILE INTEREST RATES WERE RISING TOO NOW WITH THE LATEST RATE BOOST BY THE FED IN EARLY APRIL SMALLCAP INDUSTRIALS HAVE BACKED OFF ALONG WITH THE REST OF THE SMALLCAP MARKET MARKET PSYCHOLOGY HAS CHANGED HE SAYS MOST INVESTORS DID NOT BELIEVE RATES WOULD RISE AS FAST OR AS MUCH AS THEY DID FOR NOW HIS FIRM IS HOLDING ON TO A SMALL HANDFUL OF VALUE SMALLCAP INDUSTRIALS SUCH AS CLEVELANDCLIFFS INC A PRODUCER OF IRONORE PELLETS THE STOCK IS A BUY ON PRICE AND FUNDAMENTALS HE SAYS NOTING THAT THE SHARES HAVE TAKEN A ROUND TRIP FROM 35 AT YEAR'S OUTSET TO 45 ON MARCH 21 THE DAY THE RUSSELL 2000 SMALLCAP INDEX HIT A RECORD BACK DOWN TO LEVELS AROUND 36 WITH A FORWARD PRICEEARNINGS MULTIPLE OF 1134 WE ARE STICKING WITH CLEVELANDCLIFFS HE SAYS AND NOT ALL MANAGERS THINK THE AUTO AND METALPARTS BETS ARE BAD ONES THESE DAYS TAKE DAVID DIAMOND A VALUEORIENTED FUND MANAGER AT BOSTON CO WE'VE SEEN WEAKNESS IN SYMPATHY WITH THE LARGECAP UNIVERSE IN THE AUTO PARTS AND AUTORELATED STOCKS AS WELL AS WITH OTHER METALBENDERS EARNINGS HAVE COME THROUGH INTACT BUT THE STOCKS HAVE EITHER BEEN HIT OR NOT SHOWN PRICE APPRECIATION BECAUSE OF THE INTERESTRATE FEARS YET VALUATIONS ARE STILL ATTRACTIVE TO THE EXTENT THAT EARNINGS POWER COMES THROUGH I THINK THEY'RE STILL REASONABLE INVESTMENTS HE SAYS NOTING THAT HE'S HOLDING ON TO AUTOPART SUPPLIER CTS CORP AND TO ELCO INDUSTRIES INC A MAKER OF FASTENERS AND NAILS SMALLCOMPANY STOCKS ENDED A VOLATILE WEEK ON A POSITIVE NOTE ENCOURAGED BY MODERATE STRENGTH IN THE TECHNOLOGY AND BIOTECH GROUPS THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES ROSE 123 OR 050 TO 24655 ON NASDAQ THE COMPOSITE INDEX ROSE 382 OR 053 TO 72256 ADVANCING NASDAQ ISSUES SURPASSED DECLINERS 1695 TO 1394 ON NASDAQ NATIONAL MARKET VOLUME OF 281258000 SHARES AND TOTAL VOLUME OF 319543000 THOSE FIGURES COMPARE WITH NATIONAL MARKET TURNOVER OF 301133000 SHARES AND OVERALL VOLUME OF 341226000 THURSDAY FOR THE WEEK THE RUSSELL 2000 FELL 36 OR 144 THE NASDAQ COMPOSITE DECLINED 541 OR 074 AND THE INDUSTRIAL AVERAGE SLID 1279 OR 035 THE RUSSELL AND THE NASDAQ INDEXES POSTED SHARP LOSSES FOR THE FIRST THREE DAYS LAST WEEK WHILE THE DOW INDUSTRIALS ADVANCED ONLY ON THURSDAY AMONG INDIVIDUAL TECH STOCKS FRIDAY ZEOS INTERNATIONAL A MICROCOMPUTER CONCERN GAINED 1/2 TO 3 1/8 AND INFOSOFT INTERNATIONAL A SOFTWARE COMPANY JUMPED 2 1/8 TO 20 STRONG FIRSTQUARTER EARNINGS TOOK AMGEN UP 4 3/4 TO 42 LIFTING SMALLER BIOTECH ISSUES IN THE PROCESS BIOSEPRA ADDED 7/8 TO 6 3/4 IMMUNOGEN 3/8 TO 4 7/8 AND SEPRACOR 3/4 TO 6 1/2 ELSEWHERE IN THE HEALTHCARE GROUP MITEK SURGICAL PRODUCTS CLIMBED 2 1/4 TO 14 1/2 THE COMPANY SAID ITS FIRSTQUARTER EARNINGS ROSE TO 24 CENTS A SHARE FROM 20 CENTS A YEAR EARLIER AND SURPASSED WALL STREET'S PROJECTION OF ABOUT 16 CENTS BUT ZOLL MEDICAL SLUMPED 7 TO 17 1/8 THE COMPANY'S SHARES FELL AFTER ITS FISCAL SECONDQUARTER EARNINGS CAME IN AT 22 CENTS A SHARE BELOW THE 23 CENTS EXPECTED BY ANALYSTS A YEAR EARLIER ZOLL EARNED 13 CENTS HAMBRECHT & QUIST ANALYST KURT KRUGER CUT HIS RATING TO HOLD FROM BUY AND LOWERED HIS 1994 AND 1995 EARNINGS ESTIMATES ALEX BROWN & SONS ALSO TRIMMED ITS PROJECTIONS FOR THOSE YEARS IN OTHER EARNINGS NEWS ZEBRA TECHNOLOGIES A DESIGNER OF TICKETPRINTING SYSTEMS PLUMMETED 6 7/8 TO 26 1/4 THE COMPANY REPORTED FIRSTQUARTER EARNINGS OF 35 CENTS A SHARE WHICH FELL FOUR CENTS SHORT OF CONSENSUS ANALYSTS' ESTIMATES IN THE YEAREARLIER QUARTER ZEBRA POSTED NET INCOME OF 30 CENTS A SHARE CAITLIN MOLLISON CONTRIBUTED TO THIS ARTICLE 9404250128 940425 INTERNATIONAL GERMANY'S MERCHANDISE TRADE WIESBADEN GERMANY'S MERCHANDISE TRADE SURPLUS WAS LITTLE CHANGED IN FEBRUARY FROM JANUARY BUT MORE THAN DOUBLED FROM FEBRUARY 1993 THE FEDERAL STATISTICS OFFICE SAID THE NATION'S TRADE SURPLUS WHICH ENCOMPASSES BOTH HALVES OF UNIFIED GERMANY STOOD AT A PRELIMINARY 57 BILLION MARKS 337 BILLION IN FEBRUARY ONLY MARGINALLY LOWER THAN JANUARY'S FINAL 58 BILLIONMARK SURPLUS FEBRUARY'S FIGURE MARKS A HEALTHY REBOUND FROM THE RELATIVELY NARROW 28 BILLIONMARK TRADE SURPLUS IN FEBRUARY 1993 ACCORDING TO FIGURES RELEASED BY A SPOKESMAN AT THE STATISTICS AGENCY 9404250127 940425 CAMDEN PROPERTY TRUST OFFERING HOUSTON CAMDEN PROPERTY TRUST SAID IT SOLD THREE MILLION COMMON SHARES AT 24 A SHARE AND 75 MILLION OF 733 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2001 THE DEBENTURES ARE CONVERTIBLE INTO CAMDEN COMMON AT 24 A SHARE THE REALESTATE INVESTMENT TRUST SAID UNDERWRITERS ALSO EXERCISED THEIR OPTION TO BUY AN ADDITIONAL 450000 COMMON SHARES AND 113 MILLION OF THE DEBENTURES TO COVER OVERALLOTMENTS NET PROCEEDS OF BOTH OFFERINGS WILL BE USED TO REPAY APPROXIMATELY 106 MILLION OF FLOATINGRATE DEBT AND TO BUY THREE MULTIFAMILY PROPERTIES CONTAINING 566 UNITS AS WELL AS FOR GENERAL CORPORATE PURPOSES KIDDER PEABODY & CO LED THE UNDERWRITING GROUP 9404250126 940425 ECONOMY CLINTON SELECTS TWO ECONOMISTS FOR POSTS AT FED BLINDER YELLEN NOMINATIONS ARE AIMED AT INCREASING ITS EMPHASIS ON GROWTH BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON PICKED TWO ECONOMISTS WITH DISTINGUISHED ACADEMIC PEDIGREES FOR THE FEDERAL RESERVE BOARD HOPING THEY CAN PERSUADE THE FED TO INCREASE ITS EMPHASIS ON GROWTH MR CLINTON AS EXPECTED SAID HE WILL NOMINATE ALAN BLINDER OF HIS COUNCIL OF ECONOMIC ADVISERS AND JANET YELLEN OF THE UNIVERSITY OF CALIFORNIA'S HAAS SCHOOL OF BUSINESS AT BERKELEY TO THE SEVENMEMBER BOARD MR BLINDER WOULD BECOME THE BOARD'S VICE CHAIRMAN THE NOMINATIONS COME AS THE FED HAS BEGUN TO RAISE SHORTTERM INTEREST RATES ARGUING THAT IT MUST MOVE NOW TO PREVENT AN INCREASE IN INFLATION NEITHER THE CENTRAL BANK NOR THE WHITE HOUSE WANTS THE ECONOMY TO GROW SO FAST THAT THE FED WILL SLAM ON THE BRAKES AND PROVOKE A RECESSION BEFORE THE 1996 ELECTION BUT THERE ARE BOUND TO BE DIFFERENCES ABOUT HOW MUCH GROWTH IS TOO MUCH AND ABOUT HOW HIGH INTEREST RATES NEED TO GO TO MINIMIZE THE INFLATION RISK MR CLINTON'S ADVISERS SOUGHT NOMINEES WHO BY INTELLECT AND PERSONALITY MIGHT INFLUENCE FED CHAIRMAN ALAN GREENSPAN TO LEAN TOWARD SOMEWHAT MORE GROWTH INTRODUCED AT THE WHITE HOUSE BY TREASURY SECRETARY LLOYD BENTSEN FRIDAY MS YELLEN DESCRIBED HERSELF AS A NONIDEOLOGICAL PRAGMATIST AND SPOKE OF THE CONTRIBUTION THAT A PREDICTABLE WELLEXECUTED MONETARY POLICY CAN MAKE TO ECONOMIC GROWTH MR BLINDER QUOTING MR GREENSPAN PLEDGED THE FED WILL CONTINUE TO AIM FOR SUSTAINABLE NONINFLATIONARY GROWTH TALKING TO REPORTERS LATER IN THE DAY HE SAID THAT SIGNS OF AN IMMINENT ACCELERATION OF INFLATION JUST AREN'T THERE BUT IN CONTRAST TO REAGAN AND BUSH APPOINTEES TO THE FED BOTH MR BLINDER AND MS YELLEN ARE FROM THE LIBERAL KEYNESIAN WING OF ECONOMISTS NEITHER IS LIKELY TO BE AN ALLY OF THOSE AT THE FED WHOSE TOP PRIORITY IS REDUCING THE INFLATION RATE BELOW TODAY'S MODERATE LEVEL THEY'RE BOTH FIRSTRATE ECONOMISTS SOMEWHAT MORE CONCERNED WITH GROWTH THAN WORRIED ABOUT FUTURE INFLATION SAID MICHAEL BOSKIN WHO WAS PRESIDENT BUSH'S TOP ECONOMIC ADVISER I'D EXPECT THEIR APPRECIATION OF THE IMPORTANCE OF KEEPING INFLATION LOW AND STABLE TO GROW IN THEIR NEW JOBS MR BLINDER WHO ONCE DESCRIBED HIMSELF IN PRINT AS AN INFLATION DOVE WROTE IN 1987 THAT THE LOW AND MODERATE INFLATION RATES EXPERIENCED IN THE US ARE MORE LIKE A BAD COLD THAN A CANCER ON SOCIETY EXTENDING THE METAPHOR IN AN INTERVIEW EARLIER THIS YEAR HE ADDED IF YOU DON'T HAVE A COLD YOU CERTAINLY DON'T WANT TO CONTRACT ONE THAT'S THE FED'S CURRENT JOB MS YELLEN'S WRITINGS ARE LESS QUOTABLE TO THE RELIEF OF MR CLINTON'S ECONOMIC ADVISERS BUT SHE IS A PROTEGE OF YALE UNIVERSITY ECONOMIST JAMES TOBIN MR TOBIN A NOBEL LAUREATE WHO IS AMONG THE GREENSPAN FED'S TOUGHEST CRITICS SAID EARLIER LAST WEEK THAT MS YELLEN WILL HAVE A VERY SALUTARY INFLUENCE ON THE FED THE TWO NOMINEES CAN'T OUTVOTE THE 10 OTHER MEMBERS OF THE FED'S POLICY COMMITTEE BUT PRESIDENTS REAGAN AND BUSH DEMONSTRATED THAT TWO NEW VOICES CAN ALTER FED POLICY IN LATE 1991 FOR INSTANCE THE PACE OF FED INTERESTRATE CUTS ACCELERATED AFTER TWO BUSH APPOINTEES ARRIVED MR BLINDER 48 YEARS OLD WASN'T AMONG MR CLINTON'S INNER CIRCLE DURING THE PRESIDENTIAL CAMPAIGN BUT IN THE PRESIDENT'S WORDS HE EMERGED AS AN ECONOMIC CONSCIENCE IN MY ADMINISTRATION STRIVING TO ENSURE THAT OUR POLICIES MET THE TEST OF RATIONALITY AND WORKABILITY FORMER FED VICE CHAIRMAN DAVID MULLINS CALLED THE NOMINATION EXCELLENT PRAISED MR BLINDER'S STATURE ABILITY AND INTELLECTUAL INTEGRITY AND SAID HE WAS CONFIDENT MR BLINDER UNDERSTANDS THE IMPORTANT ROLE OF THE CENTRAL BANK IN KEEPING INFLATION IN CHECK MR BLINDER EARNED A DOCTORATE AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY AND TAUGHT FOR MORE THAN 20 YEARS AT PRINCETON UNIVERSITY BEFORE TAKING THE WHITE HOUSE JOB MS YELLEN 47 EARNED HER DOCTORATE AT YALE AND TAUGHT AT HARVARD AND THE LONDON SCHOOL OF ECONOMICS BEFORE JOINING THE BERKELEY FACULTY IN 1980 SHE WORKED AS AN INTERNATIONAL ECONOMIST ON THE FED STAFF IN WASHINGTON IN THE LATE 1970S HER HUSBAND GEORGE AKERLOF IS A PROMINENT MACROECONOMIC THEORIST MR BLINDER WOULD FILL MR MULLINS'S TERM ON THE FED WHICH EXPIRES IN JANUARY 1996 MS YELLEN WOULD SUCCEED REAGAN APPOINTEE WAYNE ANGELL FOR A FULL 14YEAR TERM IN A STATEMENT MR GREENSPAN SAID THAT HE HAS BEEN SINGULARLY IMPRESSED WITH MR BLINDER'S CAPABILITIES AND THAT THOUGH HE HASN'T WORKED WITH MS YELLEN HE FOUND HER CREDENTIALS CLEARLY IMPRESSIVE MR GREENSPAN'S TERM AS FED CHAIRMAN EXPIRES IN MARCH 1996 IF MR GREENSPAN ISN'T REAPPOINTED MR BLINDER COULD BE A CONTENDER FOR THE POST OTHER POSSIBILITIES INCLUDE ROBERT RUBIN HEAD OF MR CLINTON'S NATIONAL ECONOMIC COUNCIL AND GERALD CORRIGAN FORMER PRESIDENT OF THE NEW YORK FEDERAL RESERVE BANK THE NOMINATIONS OF MR BLINDER AND MS YELLEN ARE SUBJECT TO SENATE CONFIRMATION 9404250125 940425 TITAN HOLDINGS PURCHASE CLEARED SAN ANTONIO TITAN HOLDINGS INC SAID A LOUISIANA STATE COURT APPROVED ITS PURCHASE OF AUTOMOTIVE CASUALTY INSURANCE CO FROM THE LOUISIANA DEPARTMENT OF INSURANCE FOR 116 MILLION OVER TWO YEARS THE INSURANCE CONCERN SAID THE ACQUISITION REMAINS SUBJECT TO REGULATORY APPROVALS AND THE COMPLETION OF A DEFINITIVE AGREEMENT AUTOMOTIVE CASUALTY A LOUISIANABASED INSURANCE FIRM SPECIALIZING IN NONSTANDARD AUTOMOBILE POLICIES WAS DECLARED INSOLVENT AND TAKEN OVER BY THE LOUISIANA AGENCY LAST YEAR A SOLVENT SUCCESSOR COMPANY WAS CARVED OUT FOR AUCTION TITAN SAID THAT ACCORDING TO THE DEPARTMENT THE FIRM WILL HAVE ABOUT 8 MILLION IN ASSETS WHEN SOLD 9404250124 940425 ENTERPRISE INDEPENDENTS REAP REWARDS AT BOX OFFICE BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL IT MAY TAKE YEARS BEFORE THE WONDERFUL HORRIBLE LIFE OF LENI RIEFENSTAHL GROSSES WHAT JURASSIC PARK REAPED IN A FEW HOURS BUT FOR INDEPENDENT FILM DISTRIBUTOR DONALD KRIM THAT WOULD MAKE THE DOCUMENTARY A BLOCKBUSTER MR KRIM'S KINO INTERNATIONAL CORP ACQUIRED THE DOMESTIC RIGHTS TO LENI RIEFENSTAHL ABOUT ONE OF THE BESTKNOWN MAKERS OF NAZI PROPOGANDA FILMS AFTER BIGGER INDEPENDENT RIVALS BALKED IT RELEASED THE FILM IN MARCH AT THE FILM FORUM IN NEW YORK AFTER TWO WEEKS OF NEARLY SOLDOUT PERFORMANCES THANKS PARTLY TO POSITIVE REVIEWS THE THEATER INDEFINITELY EXTENDED THE RUN KINO PLANS TO OPEN THE FILM IN 50 TO 100 THEATERS NATIONWIDE THIS SPRING ONCE EVERY FEW YEARS YOU GET LUCKY AND RELEASE A HIT THAT WILL DO A COUPLE OF MILLION DOLLARS IN SALES MR KRIM SAYS OTHERS IN THE VOLATILE BUSINESS OF INDEPENDENTFILM DISTRIBUTION ALSO ARE ENJOYING A REBOUND AFTER A SEVENYEAR SLUMP INDEPENDENTFILM BOXOFFICE RECEIPTS SOARED 77 TO 196 MILLION IN 1993 ACCORDING TO ENTERTAINMENT DATA INC A RESEARCH FIRM IN BEVERLY HILLS CALIF THAT GROSS REPRESENTS 4 OF ALL TICKET SALES UP FROM 24 A YEAR EARLIER THE INDEPENDENT SECTOR'S MARKET SHARE EXCLUDES NEW LINE CINEMA A UNIT OF TURNER BROADCASTING SYSTEMS INC AND MIRAMAX FILMS A DIVISION OF WALT DISNEY CO THOUGH MUCH OF THE 1993 INCREASE CAME FROM A HANDFUL OF INDEPENDENT HITS SUCH AS SAMUEL GOLDWYN CO'S MUCH ADO ABOUT NOTHING THERE ALSO ARE MORE INDEPENDENT DISTRIBUTORS COMING OUT TO FILL HOLES IN THE MARKETPLACE FOR SPECIALTY FILMS SAYS PHILIP GARFINKLE AN ENTERTAINMENT DATA SENIOR VICE PRESIDENT FOR AN INDEPENDENT FILM A GROSS OF ONLY 1 MILLION QUALIFIES IT AS A HIT COMPANIES LIKE KINO MUST PROMOTE WITH BAREBONE MARKETING BUDGETS OBSCURE FILMS THAT TYPICALLY APPEAR IN A DWINDLING NUMBER OF LOWPROFILE ART CINEMAS MOREOVER THESE PICTURES OFTEN FEATURE LITTLEKNOWN ACTORS WHOSE FOREIGN DIALOGUE REQUIRES MOVIEGOERS TO DO AS MUCH READING AS VIEWING POTENTIAL HITS LIKE THE SUBTITLED LENI RIEFENSTAHL CAN BE AS LETHAL AS MISSES ONE REASON INDEPENDENTDISTRIBUTOR RECEIPTS SLUMPED FROM THEIR 1987 HIGH IS THAT MANY OF THE FASTESTGROWING CONCERNS HAD FAILED EITHER BY BETTING BIG ON A WINNING STREAK OR GAMBLING ON A FORAY INTO FILM PRODUCTION ONLY KINO AND A FEW OTHERS HAVE SURVIVED FOR A DECADE OR MORE THERE'S ALWAYS AN INDEPENDENT DISTRIBUTOR GOING OUT OF BUSINESS SAYS JOHN KRIER PRESIDENT OF EXHIBITOR RELATIONS CO A FILMINDUSTRY RESEARCH AND CONSULTING FIRM IN LOS ANGELES THEY GET TOO BIG FOR THEIR BRITCHES GET INVOLVED IN TOO MANY PROJECTS AND CHOOSE THE WRONG ONES BUT KINO AND OTHER SURVIVORS NEVER BET MORE THAN THEY COULD AFFORD TO LOSE SAYS AMY HELLER WHO OWNS INDEPENDENT DISTRIBUTOR MILESTONE FILM & VIDEO IN NEW YORK WITH HER HUSBAND DENNIS DOROS NEARLY TWO DECADES AGO MR KRIM LEFT AN EXECUTIVE POSITION AT UNITED ARTISTS A STUDIO ONCE RUN BY HIS MOVIEPRODUCER COUSIN ARTHUR KRIM TODAY HE RUNS KINO FOUNDED IN 1977 FROM BEHIND A VENEERTOPPED METAL DESK IN AN UNPRETENTIOUS BUILDING NEAR MANHATTAN'S GARMENT DISTRICT HE SAYS HIS 10PERSON COMPANY HAS ANNUAL REVENUE OF SEVERAL MILLION DOLLARS MAJOR STUDIOS WHICH RELEASE 24 OR SO PICTURES APIECE EACH YEAR TYPICALLY BLITZ THOUSANDS OF MARKETS WITH MULTIMILLIONDOLLAR AD CAMPAIGNS THEY HOPE TO RECOVER MUCH OF THEIR INVESTMENT DURING THE FIRST WEEKEND MR KRIM NEVER RELEASES MORE THAN A HALFDOZEN NEW FILMS A YEAR AND TRIES TO BUILD MOMENTUM SLOWLY TO FIND PRODUCT MR KRIM AND OTHER INDEPENDENT DISTRIBUTORS RELY ON FILM FESTIVALS AND NETWORKS OF AGENTS PRODUCERS AND DIRECTORS THEY NEGOTIATE WITH PRODUCERS OF PROMISING FILMS FOR DOMESTIC AND SOMETIMES INTERNATIONAL DISTRIBUTION RIGHTS AND A SHARE OF THE FILM'S PROCEEDS AFTER SUCH EXPENSES AS MAKING PRINTS AND ADVERTISING THEY DEAL SEPARATELY WITH EXHIBITORS ON THE THEATER'S SHARE OF THE BOXOFFICE TAKE KINO FREQUENTLY OPENS A PICTURE ONLY AT A SINGLE ART THEATER SUCH AS THE FILM FORUM A LEADING EXHIBITOR OF OFFBEAT CINEMA THE THEATER'S MAILINGS TO ABOUT 20000 SUBSCRIBERS AND ITS CLOUT AMONG IMPORTANT CRITICS HELPS TO STRETCH KINO'S MARKETING BUDGET THE DISTRIBUTOR ADDS MARKETS ONLY AS VIEWER INTEREST GROWS MR KRIM SAYS THAT KEEPS KINO'S TYPICAL INVESTMENT IN EACH PICTURE TO LESS THAN 100000 IF YOU WANT TO STAY IN THIS BUSINESS YOU HAVE TO DECIDE THAT YOU WON'T GET RICH FAST AND YOU PROBABLY WON'T GET RICH AT ALL SAYS MR KRIM PROMOTING LOWBUDGET MOVIES WITH LITTLEKNOWN DIRECTORS AND STARS ALSO REQUIRES A WILLINGNESS TO NURTURE A PICTURE LONG AFTER A LARGER DISTRIBUTOR WOULD HAVE ABANDONED IT NEW YORK DISTRIBUTORS SEYMOUR WISHMAN AND JULIAN SCHLOSSBERG LEARNED THAT LESSON WITH THEIR 1990 RELEASE OF STRANGERS IN GOOD COMPANY MR WISHMAN'S FIRST RUN FEATURES AND MR SCHLOSSBERG'S CASTLE HILL PRODUCTIONS INC DISTRIBUTED THE CANADIAN FILM ABOUT EIGHT ELDERLY WOMEN STRANDED IN THE QUEBEC WILDERNESS AFTER THEIR TOUR BUS BREAKS DOWN FIGURING THE MOVIE WOULD APPEAL TO RETIREES THE DISTRIBUTORS OPENED IT AT FIVE THEATERS IN MIAMI WE GOT GREAT REVIEWS NO ONE CAME AND WE WERE OUT IN A WEEK SAYS MR WISHMAN WHOSE FOUR WAY FEATURES INC OWNS FIRST RUN MORE THAN 70000 IN DEBT AFTER ANOTHER FALSE START IN NEW YORK THE PAIR FINALLY SCORED AFTER PROMOTING THE PICTURE AS AN ART FILM IN DENVER IT WAS PICKED UP BY MORE THAN 100 THEATERS NATIONWIDE AFTER THE TELEVISION AND VIDEO RIGHTS WERE LICENSED THE PICTURE GROSSED MORE THAN 15 MILLION THE MEN SAY DANIEL TALBOT COOWNER OF 30YEAROLD NEW YORKER FILMS AND THE INDEPENDENTDISTRIBUTION INDUSTRY'S EMINENCE GRISE HAS HAD HIS SHARE OF HITS BUT THE THEATER OWNER WHO HAS INTRODUCED SUCH INNOVATIVE FOREIGN FILMMAKERS AS BERNARDO BERTOLUCCI SAYS HE FOLLOWS IN A LINE OF DISTRIBUTORS WHO LOVED FILMS AND TRIED TO CONVERT THAT LOVE INTO A BUSINESS THUS NEW YORKER FILMS A UNIT OF 89 DISTRIBUTION INC OFTEN ACQUIRES RIGHTS TO MOVIES WITH VALUE BEYOND THEIR POTENTIAL BOXOFFICE APPEAL ONE SUCH WORK IS SHOAH A NEARLY 10HOUR DOCUMENTARY ABOUT THE HOLOCAUST RELEASED BY MR TALBOT IN 1986 FRENCH DIRECTOR CLAUDE LANZMANN MADE THE FILM AFTER HE SPENT 12 YEARS INTERVIEWING WITNESSES AND SURVIVORS TO BUILD A US AUDIENCE MR TALBOT CONDUCTED THREE MONTHS OF PRIVATE VIEWINGS AND SHOWED THE FILM TO INFLUENTIAL JEWISH LEADERS ONCE WORD ABOUT THE PICTURE HAD SPREAD NEW YORKER FILMS OPENED IT AT MR TALBOT'S THEATER IN NEW YORK WHEN DISTRIBUTION WAS EXPANDED NATIONALLY MR TALBOT SAYS HE RENTED A 2000SEAT AUDITORIUM IN SKOKIE ILL WHOSE RESIDENTS INCLUDE ONE OF THE COUNTRY'S LARGEST GROUPS OF HOLOCAUST SURVIVORS SHOAH SUBSEQUENTLY AIRED ON PUBLIC TELEVISION AND WAS RELEASED ON VIDEO SHOAH IS THE MOST IMPORTANT FILM IN THE HISTORY OF MY COMPANY MR TALBOT SAYS IT'S THAT KIND OF THING THAT MAKES MY WORK WORTHWHILE HE DECLINES TO SAY WHAT THE FILM GROSSED I DON'T WANT TO MIX MONEY WITH THE HOLOCAUST 9404250123 940425 KIDDER FIRING MAY INDICATE FURTHER WOES A SECOND DISMISSAL RAISES QUESTIONS ON OVERSIGHT OF FIRM'S BOND TRADERS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BONDTRADING WOES AT KIDDER PEABODY GROUP INC APPEAR TO BE DEEPENING THE GENERAL ELECTRIC CO UNIT LATE LAST WEEK FIRED A TRADER FOR HIDING AS MUCH AS 10 MILLION IN LOSSES ON A BONDDERIVATIVES TRANSACTION ACCORDING TO KIDDER EXECUTIVES THE TRADER NEIL L MARGOLIN WAS FIRED FOR IMPROPERLY VALUING INVENTORY POSITIONS ON INTERESTRATE SWAPS KNOWN AS INDEXAMORTIZING NOTES KIDDER SAID THE DISMISSAL OF MR MARGOLIN COMES LESS THAN A WEEK AFTER KIDDER FIRED JOSEPH JETT THE COMPANY'S FORMER GOVERNMENTBOND CHIEF FOR CREATING PHANTOM TRADES AND PROFITS IN THE GOVERNMENTSTRIPS MARKET INFLATING KIDDER'S INCOME BY 350 MILLION OVER MORE THAN A YEAR IN AN ALLEGED BID BY MR JETT TO BOOST HIS PERFORMANCEBASED BONUS KIDDER SAID THE FIRING OF MR MARGOLIN 29 YEARS OLD IS UNRELATED TO THE ALLEGATIONS INVOLVING MR JETT AND THE FIRM SAID THAT IT APPEARS THAT NO OTHER PERSONNEL WAS AWARE OF OR INVOLVED IN THE BONDDERIVATIVES MISPRICING NO CUSTOMER OR COUNTERPARTY LOST ANY MONEY ON THE DERIVATIVES DEAL KIDDER SAID MR MARGOLIN DECLINED TO COMMENT BUT THE DISMISSALS RAISE QUESTIONS ABOUT KIDDER'S SUPERVISION OF RELATIVELY GREEN TRADERS WHO HAVE BEEN GIVEN BROAD LEEWAY TO PLAY WITH THE FIRM'S MONEY WALL STREET EXECUTIVES SAID BOTH MR JETT AND MR MARGOLIN HAD LITTLE OR NO TRADING EXPERIENCE ON WALL STREET BEFORE JOINING KIDDER ACCORDING TO PERSONNEL RECORDS AND BOTH TRADERS WERE UNEMPLOYED AT THE TIME KIDDER HIRED THEM THE RECORDS INDICATE MR JETT HAD SCANT TRADING CREDENTIALS AT CS FIRST BOSTON INC AND MORGAN STANLEY GROUP INC BEFORE JOINING KIDDER THE RECORDS SHOW HE WAS PROMOTED TO GOVERNMENTTRADING CHIEF LESS THAN TWO YEARS AFTER HE STARTED AT KIDDER THOUGH HE HADN'T HAD ANY PRIOR WALL STREET POSITIONS IN THE GOVERNMENTBOND AREA BEFORE KIDDER MR MARGOLIN JOINED KIDDER IN SEPTEMBER 1986 AFTER STINTS AS A SUMMER INTERN AT MOBIL OIL CORP AND THE LARGE NEW YORK LAW FIRM SKADDEN ARPS SLATE MEAGHER & FLOM THE PERSONNEL RECORDS SHOW MR MARGOLIN STARTED IN KIDDER'S FINANCE GROUP AND EVENTUALLY WORKED HIS WAY UP TO A TRADER IN THE DERIVATIVES AREA WORKING FOR MELVIN MULLIN KIDDER'S BONDDERIVATIVES CHIEF MR MARGOLIN HAD NO TRADING EXPERIENCE BEFORE HIS STINT AT KIDDER THE 46YEAROLD MR MULLIN WHO HIRED MR JETT AND PRECEDED HIM AS GOVERNMENTBOND CHIEF COULDN'T BE REACHED FOR A COMMENT UNLIKE OTHER WALL STREET TRADING FIRMS SUCH AS BEAR STEARNS COS WHICH EMPLOYS INHOUSE SPIES WHO PATROL THE TRADING FLOORS PROBING UNUSUALLY PRICED OR RISKY TRADES KIDDER APPEARS TO HAVE BEEN LAX IN ITS CONTROL OF THE BOND AREA THE MARGOLIN MATTER STEMMED FROM A DERIVATIVES TRADE INITIATED WITH A MAJOR REGIONAL BANK ABOUT A YEAR AND A HALF AGO KIDDER EXECUTIVES SAID KIDDER DECLINED TO DISCLOSE THE BANK KIDDER DISCOVERED THE MISPRICING LATE LAST WEEK WHEN MR MARGOLIN AFTER BEING QUESTIONED BY KIDDER'S FINANCE GROUP TOLD SENIOR EXECUTIVES ABOUT THE PROBLEM THE KIDDER EXECUTIVES SAID THE MISPRICING WASN'T CAUGHT EARLIER PARTLY BECAUSE OF KIDDER'S WEAK BACKOFFICE SYSTEM IN WHICH MANY TRANSACTIONS ARE MANUALLY ENTERED INTO THE FIRM'S TRADEPROCESSING AREA THE EXECUTIVES SAID WHAT'S REAL CLEAR IS THAT WE'RE NOT STRONG ENOUGH IN THAT AREA SAID A KIDDER EXECUTIVE WE NEED BETTER OVERSIGHT MOREOVER SENIOR KIDDER EXECUTIVES DON'T STAY VERY CLOSE TO THE TRADING ACTION THE WAY THEY DO AT BEAR STEARNS AND OTHER TRADING FIRMS KIDDER TRADERS SAID EDWARD CERULLO KIDDER'S FIXEDINCOME CHIEF WHO HAS BROAD RESPONSIBILITY FOR THE FIRM'S BOND OPERATIONS RARELY ROAMS THE TRADING FLOOR KIDDER TRADERS SAID IN 1991 MR CERULLO WAS FINED 5000 AND CENSURED BY THE NATIONAL ASSOCIATION OF SECURITIES DEALERS FOR IMPROPERLY SUPERVISING A BOND TRADER WHO CREATED FAKE MORTGAGEBACKED BOND TRADES ACCORDING TO DISCIPLINARY RECORDS THOUGH THE NASD FINE WAS SMALL THE INCIDENT SHOWED EARLY SIGNS OF LOOSE TRADING CONTROLS SOME WALL STREET TRADERS SAID THIS WEEKEND BUT SOME KIDDER EXECUTIVES SAID IT IS UNFAIR TO PIN THE BLAME ON ANY ONE SUPERVISOR WE TRY TO BUILD A BUSINESS SYSTEMWIDE WITH CHECKS AND BALANCES AND NOT DEPENDENT ON ONE INDIVIDUAL SAID 44YEAROLD MR CERULLO WIDELY CONSIDERED KIDDER'S NO 2 EXECUTIVE AFTER MICHAEL CARPENTER CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR MARGOLIN TRADED INTERESTRATE SWAPS WHICH ARE CONTRACTS IN WHICH FIRMS MAKE PAYMENTS THAT ARE PEGGED TO AN INTEREST RATE TRADERS FREQUENTLY ESTIMATE THE VALUE OF THEIR PROPRIETARY TRADING POSITIONS OR THOSE USING THE FIRM'S OWN MONEY THESE PORTFOLIOS HAVE ZIGZAGGED WILDLY RECENTLY WITH THE VOLATILITY OF THE BOND MARKET MISMARKING POSITIONS ISN'T ALL THAT UNCOMMON ON WALL STREET AND OFTEN LEADS TO DISMISSAL KIDDER SAID IT WOULDN'T HAVE PUBLICLY DISCLOSED THE MARGOLIN PROBLEM IF NOT FOR THE FUROR OVER THE JETT CASE KIDDER SAID THE LOSS FROM THE MISPRICED TRADES WILL BE COVERED BY NORMAL OPERATING RESERVES KIDDER TRADERS SAID THEY WERE SHOCKED BY THE NEWS OF MR MARGOLIN'S DISMISSAL HE'S THE LEAST LIKELY PERSON TO HAVE DONE SOMETHING WRONG SAID A SENIOR KIDDER EXECUTIVE THE GUY'S GOT A CLEAN TRACK RECORD INDEED A CHECK OF MR MARGOLIN'S REGULATORY HISTORY SHOWS NO RECORD OF DISCIPLINARY CASES THE MISHAP COMES AS KIDDER TRIES TO BOLSTER ITS PROFITS FROM DERIVATIVES WHICH ARE FINANCIAL ARRANGEMENTS WHOSE RETURNS ARE DERIVED FROM THE PERFORMANCE OF SOME UNDERLYING ASSET SUCH AS BONDS CURRENCIES OR COMMODITIES LAST YEAR KIDDER MADE JUST 30 MILLION IN PRETAX PROFIT FROM DERIVATIVES ACCORDING TO PEOPLE FAMILIAR WITH THE FIRM THE FIRM'S PROFIT FROM DERIVATIVES PALES IN COMPARISON WITH THAT AT OTHER BIG WALL STREET FIRMS THIS IS PARTLY BECAUSE PARENT GE SO FAR HAS BALKED AT PUTTING UP THE MORE THAN 100 MILLION OF CAPITAL THAT CREDITRATING AGENCIES SAID WOULD BE REQUIRED TO LAUNCH A SEPARATELY CAPITALIZED DERIVATIVESTRADING UNIT SIMILAR TO THOSE AT MANY KIDDER RIVALS THE PEOPLE SAID MEANWHILE SOME WALL STREET SPECIALISTS SAID THE RECENT DISCLOSURES AT KIDDER POINT UP THE PROBLEMS OF PAYING TRADERS HUGE SUMS OF MONEY MR JETT MADE 9 MILLION IN 1993 FOR MAKING BIG BOND BETS USING THE HOUSE'S MONEY KIDDER LIKE SEVERAL OTHER LARGE WALL STREET FIRMS HAS MADE THE BULK OF ITS PROFIT IN RECENT YEARS ON PRINCIPAL TRADING USING THE FIRM'S CASH THESE TRADERS ARE SUPERSTAR GUNSLINGERS SAID SAMUEL HAYES PROFESSOR OF INVESTMENT BANKING AT HARVARD BUSINESS SCHOOL THEY'RE LIKE BASEBALL PLAYERS WHO ARE FREE AGENTS THEY'RE TRYING TO MAXIMIZE THEIR INCOME IN THE SHORT TERM HE SAID THE FIRMS HAVE ENCOURAGED THIS BECAUSE THEY HAVE MADE SO MUCH MONEY OUT OF THEIR PRINCIPALTRADING ACTIVITIES 9404250122 940425 MANAGER'S JOURNAL PULL THE PLUG ON COMPUTER HYPE BY BILL LABERIS DESPITE ONE OF THE BIGGEST HYPE JOBS IN HISTORY CLIENT/SERVER COMPUTING IS NOT GOING TO TRANSFORM THE CORPORATION OVERNIGHT OR ANYTIME SOON FOR THOSE NOT UP TO SPEED ON HIGHTECH DEVELOPMENTS CLIENT/SERVER COMPUTING IS AN ATTEMPT TO REACH BEYOND THE HOSTBASED SYSTEMS THAT ARE FAST BECOMING OLDFASHIONED IN THESE OLDER SYSTEMS A CENTRAL MACHINE USUALLY A MAINFRAME OR MINICOMPUTER PERFORMED ALL THE COMPUTING TASKS AND SENT THE FINISHED RESULTS TO A USER MAKING A REQUEST VIA A TERMINAL WITH LITTLE OR NO ABILITY TO PERFORM THE TASK ITSELF BUT WITH CLIENT/SERVER COMPUTING COMPLEX COMPUTER TASKS OR APPLICATIONS SUCH AS SEARCHES THROUGH PAYROLL RECORDS ARE SUBDIVIDED INTO PARTS THAT CAN BE HANDLED BY PCS THE CLIENTS THE INFORMATION THE CLIENTS NEED TO PERFORM THEIR TASKS INFORMATION STORED IN COMPLEX DATA BASES IS CONTROLLED AND PARCELED OUT BY THE SERVER EARLY CLIENT/SERVER HYPSTERS LIKED TO REFER TO THIS OLD STYLE OF COMPUTING AS EXPENSIVE COMPUTING THEIR REASONING WAS THAT THE COST OF A UNIT OF COMPUTING ON A PERSONAL COMPUTER IS A FRACTION OF THAT ON A MAINFRAME OR MINI THUS WAS BORN MYTH NUMBER ONE ABOUT CLIENT/SERVER COMPUTING THAT IT IS CHEAPER TODAY NOT EVEN THE VENDORS DARE SAY THAT CLIENT/SERVER COMPUTING IS CHEAPER THAN THE OLD METHOD CAMBRIDGE MASSBASED FORRESTER RESEARCH ESTIMATES THAT THE COSTS OF RUNNING A LARGE PC NETWORK ARE SOME 300 HIGHER THAN SUPPORTING A LIKE NUMBER OF USERS IN A MAINFRAME NETWORK GARTNER GROUP IN STAMFORD CONN PEGS THE BACKEND COSTS PER PC IN A LARGESCALE OPERATION AT 24000 OVER FIVE YEARS AND CHAPEL HILL NCBASED XEPHON A MARKET RESEARCH FIRM CLAIMS THAT EVEN PROJECTING TO 1998 THE COST PER PC USER WILL STILL BE 50 HIGHER THAN PER MAINFRAME USER THAT'S 15000 PER PC USER OVER A FIVEYEAR PERIOD VS 10000 PER MAINFRAME USER A HOST OF ANECDOTAL EVIDENCE SUPPORTS THIS RESEARCH ALTHOUGH FIRST BOSTON CORP VIEWS ITS MOVE TO CLIENT/SERVER AS A COMPETITIVE ADVANTAGE THAT GIVES ITS TRADERS FASTER ACCESS TO DATA FEEDS MOVING APPLICATIONS FROM IBM MAINFRAMES TO WORKSTATIONS SWELLED THE COST PER USER TO 15000 FROM 4000 FIRST BOSTON ALSO FOUND THAT MANY OF THE IMPORTANT JOBS HANDLED SO FLUIDLY IN THE MAINFRAME ENVIRONMENT SUCH AS BACKING UP PRODIGIOUS AMOUNTS OF DATA WERE UNCHARTED TERRITORY IN THE CLIENT/SERVER WORLD BUT THE HYPE GOES ON IT IS SAID THAT CLIENT/SERVER COMPUTING WILL FREE YOUR COMPANY FROM THAT OPPRESSIVE MAINFRAME AND THOSE AWFUL MIS PEOPLE WHO SEEK TO CONTROL COMPANY DATA ALMOST AS THOUGH THAT DATA WERE THEIR OWN THUS IS BORN MYTH NUMBER TWO WHICH STATES THAT NETWORKED PCS CAN REPLACE MAINFRAMES IT IS TRUE THAT A HALFDOZEN DIFFERENT HIGHEND PCS HAVE THE SAME RAW COMPUTING POWER AS ANY MAINFRAME AT A TINY FRACTION OF THE PRICE BUT A PC OR A WHOLE BUNCH OF PCS NETWORKED TOGETHER DO NOT A SYSTEM MAKE NOT WHEN THAT SYSTEM IS CONDUCTING A CRITICAL COMPUTING MISSION SUCH AS THAT OF AN AIRLINE RESERVATION SYSTEM OR THE TRADING SYSTEM OF AN INVESTMENT BANK OR BROKERAGE BACKED BY 30 YEARS OF DEVELOPMENT BY THOUSANDS OF VENDORS SUCH SYSTEMS HAVE A WEALTH OF FEATURES THAT PROTECT THE DATA FROM INTRUDERS AND ENSURE THE INTEGRITY OF THE DATA STORED IN THE SYSTEMS' VARIOUS COMPUTERS THREE YEARS AGO MANAGERS AT MICROSOFT CORP THE APOSTLE OF CLIENT/SERVER COMPUTING TOLD EDITORS OF COMPUTERWORLD THAT THEY WOULD PULL THE PLUG ON ALL THEIR LARGE SYSTEMS WITHIN TWO YEARS SOMEHOW THAT HORIZON HAS MOVED OUT ANOTHER TWO YEARS FROM TODAY IF MICROSOFT COULD POSSIBLY PULL THE PLUG IT CERTAINLY WOULD BUT IT CANNOT WITHOUT DOING ITSELF A LOT MORE HARM THAN GOOD STILL THE HYPE OH THE HYPE ONCE THEY ARE UP AND RUNNING THE SONG GOES CLIENT/SERVER SYSTEMS ARE JUST A WHOLE LOT EASIER TO MANAGE AND OPERATE THAN THE DINOSAURS THEY WILL REPLACE COMPUTER PEOPLE CAN EASILY TRANSFER THEIR SKILLS TO THE CLIENT/SERVER WORLD AND EVERYTHING WILL BE DUCKY THIS IS MYTH NUMBER THREE THE NEWWAVE COMPUTING ENVIRONMENTS ARE AT LEAST AN ORDER OF MAGNITUDE MORE COMPLEX THAN THE PROPRIETARY SYSTEMS THEY WILL EVENTUALLY SUCCEED FOR EXAMPLE IT IS POSSIBLE WHEN USING COBOL THE LINGUA FRANCA OF THE MAINFRAME WORLD TO WRITE A SINGLE INSTRUCTION AND THEREBY EXECUTE A RELATIVELY COMPLEX TASK SUCH AS A DATA STORAGE MANAGEMENT ROUTINE USING ONE OF THE LANGUAGES OF THE CLIENT/SERVER WORLD LIKE C++ THE SAME PROGRAMMER MIGHT HAVE TO WRITE AS MANY AS A DOZEN INSTRUCTIONS THIS MEANS THAT IN ADDITION TO THERE BEING SOME 1 TRILLION OF INSTALLED PROPRIETARY OR LEGACY SYSTEMS OUT THERE THERE ARE TENS OF THOUSANDS OF PROGRAMMERS AND OTHER PERSONNEL WHO NEED TO BE RETRAINED RETRAINING THEM IS A MONUMENTAL TIMECONSUMING AND COSTLY INVESTMENT IT IS GOING ON NOW AT MOST CORPORATIONS AND IT ISN'T GOING TO BE COMPLETED ANY TIME SOON PACIFICARE HEALTH SYSTEMS INC A 22 BILLION HMO FOUND OUT THE HARD WAY THROUGH ITS RUDE INTRODUCTION TO A CLIENT/SERVER SYSTEM LEARNING AS YOU GO AS A TECHNOLOGY EXECUTIVE THERE TOLD COMPUTERWORLD GETS REALLY EXPENSIVE AND SETS YOU UP FOR MANY FALSE STARTS A GOOD DEAL OF OUR CLIENT/SERVER COSTS WENT TO PAYING FOR A LEARNING CURVE THAT WAS MUCH STEEPER THAN IMAGINED HE SAID EDUCATION ATE UP THE LARGEST CHUNK OF MONEY PACIFICARE HAS SPENT ON CLIENT/SERVER WITH MORE THAN HALF OF AN ESTIMATED 200 COST OVERRUN OF INITIAL SPENDING PROJECTIONS GOING TO TRAINING PCS WILL GROW IN POWER IN NUMBER AND IN FUNCTIONALITY AND BECOME THE DOMINANT PLATFORM FOR CONDUCTING CRITICAL COMPUTING TASKS CLIENT/SERVER COMPUTING WILL REPLACE THE OLD STYLE OF CRUNCHING NUMBERS AND PROCESSING DATA JUST BEAR IN MIND THAT THERE ARE SERIOUS CONSEQUENCES TO RUSHING THIS PROCESS BEYOND THE ABILITY OF THE UNDERLYING TECHNOLOGY TO SUSTAIN IT OR OF THE WORK FORCE TO MAINTAIN IT MR LABERIS IS EDITOR IN CHIEF OF COMPUTERWORLD PUBLISHED BY INTERNATIONAL DATA GROUP CO 9404250121 940425 WESTERN CONSORTIUM RUNS INTO BARRELS OF WOE IN 2YEAR BID TO NAIL DOWN AZERBAIJAN OIL DEAL BY JAMES M DORSEY SPECIAL TO THE WALL STREET JOURNAL BAKU AZERBAIJAN CIRCUMSTANCES CHANGE SAYS PHIL MAXWELL AS HE EMPTIES HIS DESK ON HIS LAST DAY IN BAKU THE BRITISH PETROLEUM CO REPRESENTATIVE ARRIVED IN AZERBAIJAN'S CAPITAL TWO YEARS AGO TO SET UP BP'S CASPIAN SEA HEADQUARTERS IN THE MANSION OF A LOCAL TURNOFTHECENTURY OIL BARON THE COMPANY OPTED FOR A HIGHPROFILE PRESENCE IN THE HIGHSTAKES PURSUIT OF AN OILDEVELOPMENT CONTRACT THAT PROMISES AS MUCH AS THREE BILLION BARRELS OF LIGHT OIL BUT AFTER THREE AZERBAIJANI GOVERNMENTS THREE MULTIBILLIONDOLLAR DRAFT AGREEMENTS AND THE EVERLARGER SHADOW RUSSIA CASTS OVER THE ISSUE BP AND OTHER WESTERN OIL COMPANIES ARE CUTTING BACK IN BAKU WONDERING IF THIS PARTICULAR PRIZE IS WORTH THE PRICE INDEED AZERBAIJAN COULD BECOME A MODEL FOR EVERYTHING THAT CAN GO WRONG IN THE RUSH TO DEVELOP THE RICH RESOURCES OF THE NEWLY INDEPENDENT REPUBLICS OF THE FORMER SOVIET UNION AT THE BEGINNING OF THIS CENTURY THE WORLD'S LARGEST OIL FIELD RESTED BENEATH THE TIRELESSLY PUMPING DERRICKS NEAR BAKU ON THE CASPIAN SEA FIRST COMMUNISM AND THEN THE RAPID EXHAUSTION OF EASILY RECOVERABLE RESOURCES CHASED AWAY INTERNATIONAL INVESTORS DURING THE PAST FEW YEARS THE FALL OF COMMUNISM AND A SHRINKING NUMBER OF OILDEVELOPMENT OPTIONS HAVE BROUGHT BIG OIL BACK TO BAKU WHERE THE OIL AND GAS NOW LIE DEEPER BENEATH THE CASPIAN AND AT LEAST 80 KILOMETERS OFFSHORE ACCESS THOUGH HAS TURNED OUT TO BE THE LEAST OF THE PROBLEMS SINCE EIGHT WESTERN OIL COMPANIES LAST YEAR DECIDED TO FORM A CONSORTIUM AND ENTER INTO NEGOTIATIONS WITH AZERBAIJAN BP AND NORWAY'S STATEOWNED STATOIL AS ARE COLEADERS OF THE GROUP AND HOLD A 367 INTEREST OTHER MEMBERS ARE AMOCO CORP PENNZOIL CO RAMCO OIL SERVICES INC UNOCAL CORP MCDERMOTT INTERNATIONAL INC AND TURKEY'S STATEOWNED TURKISH PETROLEUM CO THE NEGOTIATIONS FOR THE OFFSHORE CHIRAG AND AZERI OIL FIELDS HAVE OFTEN RESEMBLED THE PEELING OFF OF AN ONION'S LAYERS WITHOUT EVER GETTING TO ITS CORE AMONG COMPLICATIONS WERE THE SIXYEAROLD WAR WITH NEIGHBORING ARMENIA AZERBAIJAN'S DOMESTIC POLITICAL INSTABILITY AND ITS MIDDLE EASTERN PERCEPTION OF THE WORLD IN WHICH CONSPIRACIES LIE BEHIND EVERY WESTERN MOVE THE COMPLEX RELATIONSHIP BETWEEN AZERBAIJAN AND RUSSIA ADDED ANOTHER SERIOUS WRINKLE RUSSIA BACKED LAST YEAR'S COUP AGAINST DEMOCRATICALLY ELECTED NATIONALIST PRESIDENT EBULFEZ ELCIBEY WHICH BROUGHT TO POWER GEIDAR ALIYEV A FORMER KGB CHIEF AND POLITBURO MEMBER THE PAYBACK SEEMED TO COME IN LATE MARCH WHEN RUSSIA'S INTEGRATED OIL GIANT LUKOIL RECEIVED A 10 STAKE IN THE CHIRAG/AZERI PROJECT AT STAKE HOWEVER IN THE BATTLE FOR AZERBAIJAN MAY BE FAR MORE THAN AN AGREEMENT INVOLVING AS MUCH AS 9 BILLION FOR DEVELOPMENT PLUS 2 BILLION FOR PIPELINES TO TRANSPORT CRUDE THE OUTCOME OF THE NEGOTIATIONS COULD WELL DETERMINE WESTERN INFLUENCE IN A REGION WHOSE RESOURCES AND LOCATION AT THE CROSSROADS OF EUROPE AND ASIA HEIGHTEN ITS STRATEGIC IMPORTANCE AZERBAIJAN FACES THE CHOICE OF SUCCUMBING TO RUSSIA OR TYING ITSELF TO THE WEST SAYS BULENT ALIRIZA A WASHINGTONBASED ADVISER TO AMOCO THE OIL AGREEMENT AND THE PIPELINE TO EXPORT THE OIL ARE THE REAL ISSUE PUMPING OIL OUT OF AZERBAIJAN REPRESENTS AN ALMOST IMMEDIATE OPPORTUNITY TO EXPAND WESTERN INTERESTS IN A REAL WAY INTO THE FORMER SOVIET STATE SYSTEM INDEED WESTERN COMPANIES CONFRONT A COMPLEX GEOPOLITICAL GAME IN WHICH RUSSIA IS DETERMINED TO ENSURE THAT IT MAINTAINS A KEY POLITICAL AND ECONOMIC ROLE IN THE REGION AN AZERBAIJANI AGREEMENT WITH THE WESTERN CONSORTIUM COULD BREAK A GROWING PATTERN IN WHICH RUSSIAN EFFORTS IN THE CAUCASUS AND CENTRAL ASIA TO CONTROL THE FLOW OF RESOURCES THREATEN TO STRANGLE THE REGION'S ECONOMIC DEVELOPMENT IN ADDITION TO ITS PLAY IN AZERBAIJAN RUSSIA RECENTLY INCREASED PRESSURE ON KAZAKHSTAN AND ITS WESTERN PARTNERS TO GIVE MOSCOW A STAKE IN TWO OF THE LARGEST ENERGY PROJECTS IN THE FORMER SOVIET UNION IN PRACTICAL TERMS THIS TRANSLATES INTO OIL COMPANIES TAKING A GOOD LOOK AT THE PROSPECTS FOR SUCCESSFULLY CONCLUDING AN AGREEMENT WITH AZERBAIJAN ANYTIME SOON AND WONDERING WHETHER THE TIME HAS COME TO CUT THEIR LOSSES AND PACK THEIR BAGS PENNZOIL HAS THE MOST TO LOSE WITH AN ESTIMATED 100 MILLION ALREADY INVESTED IN AZERBAIJAN BP IS SLASHING ITS AZERBAIJAN STAFF TO 30 FROM 80 AND OTHER CONSORTIUM MEMBERS ARE FOLLOWING SUIT EVERYBODY IS CUTTING BACK THESE NEGOTIATIONS ARE TAKING MUCH LONGER THAN EXPECTED WE'RE BACK TO THE LEARNING PROCESS WHERE AZERBAIJAN NEEDS TO UNDERSTAND THAT ITS TERMS HAVE TO COMPETE WITH THOSE OF OTHERS IN THE INTERNATIONAL MARKET SAYS A NEGOTIATOR FOR THE CONSORTIUM IF AZERBAIJAN THINKS IT IS INDISPENSABLE IT MAY WELL BE MAKING A BIG MISTAKE WARNS THOMAS YOUNG BRITAIN'S AMBASSADOR TO AZERBAIJAN WHO NOTES THAT OIL COMPANIES ALSO ARE LOOKING AT EMERGING DEPOSITS IN ALASKA AND VIETNAM DRIVING A WEDGE BETWEEN AZERBAIJAN AND ITS WEARY SUITORS ARE WIDELY DIFFERING VIEWS OF A PROTOCOL DRAFTED LAST FALL DURING TALKS BETWEEN THE OIL COMPANIES AND MARAT MANOFOV AZERBAIJAN'S CONTROVERSIAL NEGOTIATOR AT THE TIME MR MANOFOV IS A 36YEAROLD BAKUBORN GEOLOGIST AND JURIST AFTER A STINT WORKING FOR SOVIET LAWENFORCEMENT AUTHORITIES IN SIBERIA HE MOVED TO BRATISLAVA AND BECAME A CITIZEN OF SLOVAKIA HE ALSO MANAGED TO BECOME A WEALTHY BUSINESSMAN WHOSE INTERESTS EXTEND FROM MANUFACTURING TO HOTELS SUMMER AND AUTUMN OF LAST YEAR WERE CONFUSING DAYS IN AZERBAIJAN AS RUSSIANBACKED REBEL TROOPS OUSTED MR ELCIBEY AND REPLACED HIM WITH MR ALIYEV DECLARING THAT THE ELCIBEY GOVERNMENT'S ARRANGEMENTS WITH THE OIL CONSORTIUM NEEDED TO BE REVISED THE NEW GOVERNMENT INVITED OIL COMPANIES TO RENEW NEGOTIATIONS IN AUGUST ARMED WITH A LETTER FROM SENIOR OIL OFFICIAL RASUL KUIYEV WHO HAS SINCE RISEN TO THE POWERFUL POST OF SPEAKER OF PARLIAMENT MR MANOFOV PRESENTED HIMSELF AS AZERBAIJAN'S NEWEST NEGOTIATOR THREE MONTHS OF INTENSE TALKS CULMINATED IN THE SIGNING OF A PROTOCOL IN BAKU LAST OCTOBER THAT OIL EXECUTIVES SAY CONTAINS FAR MORE FAVORABLE TERMS FOR AZERBAIJAN THAN THOSE INITIALLY AGREED UPON WITH MR ELCIBEY THEY ALSO WEREN'T HAPPY WITH MR MANOFOV'S ATTEMPTS TO SECURE MILLIONS FOR HIS SERVICES ALLEGATIONS THAT MR MANOFOV HAS REPEATEDLY DENIED MR MANOFOV NONETHELESS SUCCEEDED IN EXTRACTING FROM THE OIL COMPANIES A BOOST IN THE SOCALLED SIGNATURE BONUS PAID TO AZERBAIJAN TO 500 MILLION FROM 300 MILLION AN INCREASE IN THEIR CAPITAL CONTRIBUTION TO 75 FROM 70 AND THE FREE SUPPLY TO AZERBAIJAN OF GAS RECOVERED FROM THE MAINLY OILINTENSIVE PROJECT ACCORDING TO OIL OFFICIALS AND MR YOUNG THE PROJECTED PROFITS OF 118 BILLION WOULD BE SPLIT 80/20 IN AZERBAIJAN'S FAVOR AT THE SAME TIME MR MANOFOV TO THE DISMAY OF THE OIL COMPANIES EXCLUDED FROM THE DEAL THE ALREADYPRODUCTIVE GYUNESHLI OIL FIELD WHICH THE OIL COMPANIES HAD BEEN KEEN TO HELP DEVELOP FURTHER THE DRAFT AGREEMENT WHICH COVERS A 35YEAR PERIOD CALLS FOR COMMERCIAL OIL PRODUCTION IN THE AZERI AND CHIRAG FIELDS TO BEGIN IN LATE 1996 OR EARLY 1997 WITH OUTPUT EXPECTED TO REACH 600000 BARRELS A DAY BY THE YEAR 2000 UNHAPPY AS THE CONSORTIUM WAS WITH THIS PACT AT LEAST FOR A WHILE THE COMPANIES HAD SOMETHING BUT THEN PRESIDENT ALIYEV ON THE ADVICE OF POWERFUL DOMESTIC OIL INTERESTS DECIDED TO STALL ON MAKING ANY DEAL REJECTED THE AGREEMENT REACHED BY MR MANOFOV AND CALLED FOR RENEGOTIATION DISMISSING MR MANOFOV AS INSIGNIFICANT AND INEXPERIENCED AZERBAIJANI OFFICIALS NOW INSIST THAT THE AGREEMENT'S COMMERCIAL TERMS FAVOR THE OIL COMPANIES THE WHOLE CONCEPT OF THE COMMERCIAL TERMS IS WRONG SAYS NATEK ALIEV PRESIDENT OF SOCAR THE STATE OIL COMPANY OF THE REPUBLIC OF AZERBAIJAN THE PROBLEM IS THE CASH FLOW THE RATE OF RECOVERY OF INVESTMENTS OF THE OIL COMPANIES OVER THE FIRST YEARS IS UNFAIR HE ADDS CONSORTIUM REPRESENTATIVES INSIST THAT THEY AREN'T IN ANY RUSH TO RESPOND TO A FEB 4 PRESIDENTIAL DECREE ORDERING THE RESUMPTION OF NEGOTIATIONS SIX MONTHS AFTER SIGNING THE PROTOCOL WITH MR MANOFOV IN WHICH THE OIL COMPANIES OFFERED THEIR BOTTOM LINE PEOPLE CLOSE TO THE CONSORTIUM SAY ITS MEMBERS WON'T LET AZERBAIJAN TAKE THAT AS THE BASIS FOR YET ANOTHER ROUND OF GIVE AND TAKE WE HAVE TOLD THE AZERBAIJANIS THAT THE NEGOTIATIONS HAVE RUN THEIR COURSE WE HAVE NOTHING MORE TO DISCUSS THE PROBLEM IS THAT THE AZERBAIJANIS DON'T UNDERSTAND THE FINANCIAL COST SAYS TURKISH PETROLEUM NEGOTIATOR VASFI EROL 9404250120 940425 JOHNSTON INDUSTRIES EXPECTS FLAT EARNINGS FOR FISCAL 3RD QUARTER COLUMBUS GA JOHNSTON INDUSTRIES INC DESPITE ROBUST INCOME GROWTH FROM OPERATIONS EXPECTS TO REPORT FLAT EARNINGS FOR ITS FISCAL THIRD QUARTER BECAUSE OF A DROP IN INVESTMENT INCOME SEPARATELY JOHNSTON'S CHIEF EXECUTIVE DAVID L CHANDLER SAID IN AN INTERVIEW THAT THE TEXTILE COMPANY PLANS TO RAISE ITS QUARTERLY DIVIDEND TO NINE CENTS OR 10 CENTS A SHARE FROM EIGHT CENTS HE SAID THE BOARD HAS YET TO VOTE ON THE INCREASE MR CHANDLER SAID JOHNSTON EXPECTS TO REPORT NET INCOME OF BETWEEN 24 MILLION AND 25 MILLION OR 22 CENTS AND 24 CENTS A SHARE FOR THE QUARTER ENDED MARCH 31 THAT WOULD COMPARE WITH NET INCOME OF 24 MILLION OR 22 CENTS A SHARE A YEAR EARLIER REVENUE IS EXPECTED TO TOTAL BETWEEN 42 MILLION AND 43 MILLION FOR THE QUARTER COMPARED WITH 398 MILLION A YEAR AGO MR CHANDLER SAID OPERATING PROFIT FOR THE LATEST QUARTER ROSE 60 BUT WEAK PERFORMANCE AT THE JUPITER NATIONAL INC INVESTMENT UNIT PULLED DOWN THE EARNINGS JOHNSTON OWNS A 44 STAKE IN JUPITER AND IS ITS LARGEST SHAREHOLDER FOR THE QUARTER JUPITER EARNED ABOUT 200000 COMPARED WITH 16 MILLION LAST YEAR MR CHANDLER SAID A SLOWDOWN IN PUBLIC OFFERINGS AND WEAKNESS IN BIOTECH AND MEDICAL TECHNOLOGY STOCKS WEIGHED DOWN JUPITER'S INCOME STILL HE SAID HE'S CONFIDENT JUPITER WILL RESUME ITS UPBEAT PERFORMANCE AND ADDED THAT JOHNSTON MAY EVEN PURCHASE A BIGGER STAKE IF THINGS DO IMPROVE WHILE THE US TEXTILE INDUSTRY SUFFERED WIDESPREAD LOSSES LAST YEAR JOHNSTON BENEFITED FROM NEW MARKETS MR CHANDLER SAID TO BATTLE CHEAPER IMPORTS JOHNSTON IS MOVING AWAY FROM COMMODITYTYPE PRODUCTS MATTRESSES FOR EXAMPLE INTO MORE SOPHISTICATED DESIGNS LIKE BEDDING COVERS THOSE PRODUCTS ARE MORE COMPLICATED TO MAKE HE SAID BUT GENERATE HIGHER RETURNS EVERY MARKET IS LIKE A LAYER CAKE AND WE'RE JUST MOVING TO AN UPPEREND NICHE HE SAID 9404250119 940425 WHO'S NEWS PENTECH INTERNATIONAL INC PENTECH INTERNATIONAL INC EDISON NJ JERRY DELLA FEMINA AND ROY L BOE WERE NAMED DIRECTORS OF THIS MANUFACTURER OF PENS PENCILS AND RELATED PRODUCTS BRINGING THE BOARD TO SIX MR DELLA FEMINA IS CHAIRMAN CHIEF EXECUTIVE AND CREATIVE DIRECTOR OF JERRY & KETCHUM A NEW JOINT VENTURE COMBINING KETCHUM ADVERTISING NEW YORK AND JERRY INC MR BOE IS PRESIDENT OF THE NORTH AMERICAN SPORTS GROUP A SPORTS CONSULTING FIRM BASED IN FAIRFIELD CONN 9404250118 940425 FINANCING BUSINESS TESORO PETROLEUM CORP TESORO PETROLEUM CORP SAN ANTONIO SAID IT SIGNED A THREEYEAR 125 MILLION REVOLVING CREDIT AGREEMENT WITH A GROUP OF BANKS LED BY TEXAS COMMERCE BANK AND BANQUE PARIBAS THE AGREEMENT PROVIDES FOR ISSUING LETTEROFCREDIT COMMITMENTS UP TO THE FULL 125 MILLION CASH ADVANCES INITIALLY FOR MORE THAN 30 MILLION FOR GENERAL CORPORATE PURPOSES AND TERMFINANCING OF UP TO 15 MILLION FOR AN ADDITION AT TESORO'S KENAI ALASKA REFINERY TESORO AN ENERGY CONCERN SAID THE NEW AGREEMENT SIGNIFICANTLY INCREASES THE LETTEROFCREDIT CAPACITY OF THE COMPANY USED TO ACQUIRE FEEDSTOCKS FOR REFINERY OPERATIONS AND LETS TESORO REDUCE THE CASH RESERVES IT HAS MAINTAINED TO MEET WORKING CAPITAL NEEDS TESORO SAID EXCESS CASH WILL NOW BE INVESTED IN CAPITAL PROJECTS 9404250117 940425 GM ANNOUNCES RECALL FOR SOME CARS TRUCKS DETROIT GENERAL MOTORS CORP SAID IT IS RECALLING A TOTAL OF 46000 1994MODEL CARS AND TRUCKS IN TWO SEPARATE ACTIONS GM SAID IT WILL CHECK THE ROUTING ON ENGINE OIL COOLING LINES ON 12000 CADILLAC FLEETWOOD BUICK ROADMASTER AND CHEVROLET CAPRICE SEDANS TO MAKE SURE THEY'RE NOT RUBBING AGAINST THE STEERING GEAR GM SAID FRICTION CAUSED BY IMPROPERLY ROUTED HOSES COULD PRODUCE A HOLE THAT WOULD ALLOW OIL TO LEAK ONTO THE ENGINE RESULTING IN A COMPARTMENT FIRE GM SAID IT WILL REPLACE DEFECTIVE HOSES AT NO CHARGE THE SECOND RECALL INVOLVES 34000 CHEVROLET AND GMC C/K PICKUP TRUCKS THAT MAY HAVE A LOOSE REAR NUT WHICH COULD BREAK AND ALLOW THE LEFTHAND CONTROL ARM TO SEPERATE FROM THE FRAME CAUSING LOSS OF VEHICLE CONTROL GM SAID IT WILL CHECK THE BOLTS FOR PROPER TORQUE AND MAKE ADJUSTMENTS IF NEEDED GM SAID THERE HAVE BEEN NO REPORTED ACCIDENTS OR INJURIES IN EITHER CASE 9404250116 940425 NEW STOCK LISTINGS THE NEW YORK STOCK EXCHANGE ANNOUNCED TWO NEW LISTINGS INCLUDING ONE INITIAL PUBLIC OFFERING THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED EIGHT INITIAL OFFERINGS AND ONE SEASONED OFFERING THE AMERICAN STOCK EXCHANGE BEGAN TRADING ONE INITIAL OFFERING THE BIG BOARD BEGAN TRADING GRAND CASINOS INC MINNEAPOLIS A CASINO ENTERTAINMENT COMPANY UNDER GND PREVIOUSLY TRADED OVERTHECOUNTER ALSO TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST NEW YORK A CLOSEDEND FUND UNDER EMD AN INITIAL OFFERING THE NASDAQ LISTED THE FOLLOWING INITIAL OFFERINGS IN ITS NATIONAL MARKET SYSTEM EDUCATIONAL INSIGHTS INC DOMINGUEZ HILLS CALIF A DEVELOPER OF SUPPLEMENTAL EDUCATIONAL MATERIALS EDIN PACIFIC REHABILITATION & SPORTS MEDICINE INC VANCOUVER WASH A PROVIDER OF OUTPATIENT REHABILITATION SERVICES PRHB QUINTILES TRANSNATIONAL CORP MORRISVILLE NC A CONTRACT RESEARCH ORGANIZATION QTRN SABER SOFTWARE CORP DALLAS A SUPPLIER OF NETWORK ADMINISTRATION AND MANAGEMENT SOFTWARE FOR LOCAL AREA NETWORKS SABR DT INDUSTRIES INC LEBANON MO A MAKER OF AUTOMATED PRODUCTION EQUIPMENT DTII SOFTWARE PROFESSIONALS INC SAN MATEO CALIF A DEVELOPER OF SOFTWARE PRODUCTS SFTW CCUBE MICROSYSTEMS INC MILPITAS CALIF A PROVIDER OF DIGITAL VIDEO COMPRESSION PRODUCTS CUBE PROJECT SOFTWARE & DEVELOPMENT INC CAMBRIDGE MASS A DEVELOPER OF CLIENTSERVER APPLICATIONS SOFTWARE PSDI MACKENZIE FINANCIAL CORP TORONTO A PROVIDER OF INVESTMENT MANAGEMENT SERVICES MKFCF IS A SEASONED OFFERING THE AMEX BEGAN TRADING THE INITIAL OFFERING OF CENTENNIAL TECHNOLOGIES INC BILLERICA MASS A MAKER OF COMPUTERRELATED PRODUCTS CTN THE CBOE SAID IT WILL BEGIN TRADING OPTIONS ON CELLSTAR CORP ON FRIDAY APRIL 29 9404250115 940425 MOLDOVA HOPES FOR AN ECONOMIC MIRACLE WINEMAKING IS KEY FOR FORMER SOVIET REPUBLIC BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOLDOVA NEEDS ANOTHER MIRACLE LONG AGO ACCORDING TO LEGEND MOLDOVAN SOLDIERS DEFENDING A FORTRESS AGAINST TURKISH INVADERS WERE ABOUT TO RUN OUT OF WATER WHEN STORKS CARRYING GRAPES CAME TO THEIR AID THE JUICE HELPED THE BESIEGED CARRY THE DAY SINCE THEN THE BELI AIST STORKS WEARING NECKLACES OF GRAPES HAVE COME TO SYMBOLIZE MOLDOVA'S WINE INDUSTRY AND SINCE THE BREAKUP OF THE SOVIET UNION THREE YEARS AGO THE WINE INDUSTRY HAS COME TO REPRESENT A BIG FACTOR IN THE COUNTRY'S CHANCES FOR ECONOMIC RECOVERY IN THIS SECONDSMALLEST OF THE FORMER SOVIET REPUBLICS WEDGED BETWEEN UKRAINE AND ROMANIA WINERIES AND OTHER ENTERPRISES ARE FIGHTING ON TWO FRONTS TRYING TO CURTAIL A DECLINE IN PRODUCTION WHILE LOOKING FOR NEW ECONOMIC PARTNERS WITH A POPULATION OF 43 MILLION PEOPLE MAKING AN AVERAGE OF 7 A MONTH MOLDOVA CAN'T EXPECT MUCH HELP FROM LOCAL DEMAND ALTHOUGH A SMALL MONIED CLASS IS EMERGING AND THE STRUGGLE EXTENDS TO A THIRD FRONT THE RECOGNITION FACTOR MOLDOVA'S REGIONAL RIVALS FOR WESTERN INVESTMENT ALL HAVE MUCH HIGHER PROFILES THE POTENTIAL IN MOLDOVA IS GREAT SAYS ARTUR GHERMAN WHO IS INVOLVED IN THE COUNTRY'S ONLY WESTERNSTYLE HOTEL BUT FEW PEOPLE KNOW IT EXISTS ONE BIG HOPE IS THAT THE BELI AIST WILL HELP MOLDOVA ESTABLISH ITSELF AS A MAJOR WINEPRODUCING COUNTRY TODAY IT'S A STRUGGLE FOR SURVIVAL BUT WE'RE GETTING MANY OFFERS TO PURCHASE OUR WINE FROM A NUMBER OF COUNTRIES SAYS VALENTYN BODIUL HEAD OF CRIKOVA WINERY ONE OF THE COUNTRY'S LARGEST THAT'S EVIDENCE THAT EVEN WITH OUR PROBLEMS WE'VE GOT ALL THE POTENTIAL TO BECOME A MAJOR PLAYER IN THE WINE BUSINESS WHILE THE PROSPECTS FOR ECONOMIC RECOVERY REST HEAVILY ON THE WINE BUSINESS AS WELL AS A STRONG AGRICULTURAL SECTOR THE GOVERNMENT ALSO HAS UNDERTAKEN AN AMBITIOUS ECONOMICREFORM PROGRAM THAT HAS WON PRAISE FROM THE INTERNATIONAL COMMUNITY THE PROGRAM INCLUDES PLANS TO REDUCE THIS YEAR'S BUDGET DEFICIT TO 35 OF GROSS DOMESTIC PRODUCT FROM LAST YEAR'S 6 TO PRIVATIZE NEARLY A THIRD OF STATE ENTERPRISES AND TO CURB INFLATION TO 2 A MONTH BY THE END OF THE YEAR IN NOVEMBER MOLDOVA INTRODUCED ITS OWN CURRENCY THE LEU PRONOUNCED LAY IT HAS REMAINED STEADY AGAINST THE DOLLAR AND IS EASILY CONVERTED TO OTHER HARD CURRENCIES THE FOLLOWING MONTH THE COUNTRY SIGNED A STANDBY AGREEMENT FOR BALANCEOFPAYMENTS SUPPORT WITH THE INTERNATIONAL MONETARY FUND WORTH SOME 134 MILLION MOLDOVA ALSO IS SLATED TO RECEIVE 127 MILLION IN OTHER ASSISTANCE FROM THE INDUSTRIALIZED NATIONS AS WELL AS HELP FROM THE WORLD BANK IN AGRICULTURE AND ENERGY CONSERVATION LEADERS IN THE CAPITAL OF CHISINAU SAY THEY EXPECT THE COUNTRY WILL SOON BECOME A MEMBER OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE ALL THIS PLUS TAX HOLIDAYS OF UP TO FIVE YEARS IN SOME SECTORS EASED EXPORT TAXES AND A GENERALLY SMALL AMOUNT OF RED TAPE IS EXPECTED TO HELP ATTRACT FOREIGN INVESTORS TO THE COUNTRY'S MOST PROMISING INDUSTRIES WINEMAKING AGRIBUSINESS LIGHT INDUSTRY TEXTILES AND LEATHER SO FAR FOREIGN INVESTMENT HAS BEEN NEGLIGIBLE AS OF FEBRUARY 347 JOINT VENTURES AND 86 BUSINESSES INVOLVING ONLY FOREIGN CAPITAL HAVE INVESTED A MERE 574 MILLION ACCORDING TO FIGURES PROVIDED BY THE MINISTRY FOR FOREIGN ECONOMIC RELATIONS FOREIGN INVESTORS ALREADY IN THE MARKET HOWEVER SAY INVESTMENT IS BOUND TO INCREASE IN THE NEXT SEVERAL YEARS PROVIDING THE COUNTRY STICKS TO ITS ECONOMICREFORM PROGRAM AND RESOLVES A POLITICAL CONFLICT IN THE BREAKAWAY TRANSDNIESTER REGION THE WINE INDUSTRY HISTORICALLY HAS BEEN A FRUITFUL ONE MOLDOVA PRODUCED OVER 30 OF ALL THE WINES CHAMPAGNES AND COGNACS CONSUMED IN THE FORMER SOVIET UNION ONE OF THE LARGEST PROJECTS IS A JOINT VENTURE ESTABLISHED IN SEPTEMBER 1992 AND INVOLVING FRANCE'S HDR WINES AUSTRALIA'S PENFOLDS WINE GROUP AND A WINERY IN HINCESTI HDR AND PENFOLDS HAVE BROUGHT IN 500000 OF EQUIPMENT TO PRODUCE WHAT ARE KNOWN AS NEWWORLD WINES USING BETTER TECHNOLOGY TO MAKE CLEAR FRESH WINES IN A VARIETY OF FLAVORS ACCORDING TO CON A SIMOS THE 28YEAROLD AUSTRALIAN OPERATIONS MANAGER LAST YEAR THE JOINT VENTURE EXPORTED 720000 BOTTLES OF FOUR DIFFERENT TYPES OF WINES TO BRITAIN IN THE 450ABOTTLE RANGE ANOTHER PROBLEM FOR MOLDOVA'S WINERIES IS PAINFULLY EVIDENT IN CRIKOVA'S VAST CELLARS WHERE OVER 25 MILLION BOTTLES OF CHAMPAGNE ARE FERMENTING FREQUENT GAPS APPEAR IN THE LONG ROWS OF OTHERWISE NEATLY STACKED DUSTCOVERED BOTTLES WE'VE GOT BOTTLES EXPLODING ALL THE TIME SAYS ANDREI HOLOSTENCO A WINE SPECIALIST AT CRIKOVA LACKING THEIR OWN BOTTLEMAKER MOLDOVAN WINERIES HAVE RELIED ON POORQUALITY MATERIAL FROM UKRAINE WHILE THEY HUNT FOR ALTERNATIVES OFFICIALS FROM THE AGRICULTURE AND FOREIGN ECONOMIC RELATIONS MINISTRIES HOPE TO GET A LOAN FROM THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT TO CONSTRUCT A 60 MILLION FACILITY THAT WILL PRODUCE EXPORTQUALITY BOTTLES BUT THEY'RE OPEN TO PROPOSALS FROM FOREIGN INVESTORS DESPITE PLANS TO PRIVATIZE NEARLY A THIRD OF THE NATION'S ENTERPRISES THE GOVERNMENT HAS PUT A MORATORIUM ON LAND PRIVATIZATION UNTIL THE YEAR 2000 AND IT'S STILL UNCLEAR WHETHER CHISINAU WILL MOVE QUICKLY TO PRIVATIZE WINERIES ANOTHER AREA RIPE FOR FOREIGN INVESTMENT IS FOOD PROCESSING SAYS ION STURZA GENERAL MANAGER OF INCON WHICH EXPORTED ABOUT 17 MILLION OF FRUIT JUICES AND PROCESSED FOODS TO WESTERN EUROPE LAST YEAR DURING THE SOVIET ERA MOLDOVA PRODUCED 10 OF THE FRUITS AND 5 OF THE VEGETABLES CONSUMED IN THE SOVIET UNION TODAY AGRIBUSINESS REPRESENTS 70 OF GDP AND OFFICIALS SAY PROCESSED FOODS CAN BE AS EASILY EXPORTED TO THE WEST BUT MOLDOVA WILL HAVE TO UPGRADE ITS EQUIPMENT TO YIELD WESTERNSTANDARD PRODUCTS SAYS TERRY CORNELISON FIELD MANAGER FOR CALIFORNIABASED TRI VALLEY GROWERS A FRUITGROWING AND FOODPROCESSING COMPANY THE TECHNOLOGY AND EQUIPMENT IS 50 YEARS OUT OF DATE HERE THEY NEED HELP IN EVERYTHING PACKAGING LABELS MARKETING HE SAYS BUT MR STURZA POINTS OUT THAT MOLDOVA'S PRODUCTION COSTS ARE ABOUT 40 CHEAPER THAN IN THE WEST TO GET MORE AMERICAN BUSINESSES INTO THE MOLDOVAN MARKET THE US AGENCY FOR INTERNATIONAL DEVELOPMENT HAS EMBARKED ON A PROJECT TO HELP MATCH MOLDOVAN COMPANIES WITH AMERICAN INVESTORS CALIFORNIABASED PETOSEED CO IS WORKING WITH PRIVATE FARMS TO PRODUCE HYBRID SEEDS THAT ARE SOLD ON THE US MARKET SAYS RICHARD EDSALL VICE PRESIDENT OF PRODUCTION HIS COMPANY IS ALSO DOING BUSINESS IN UKRAINE AND RUSSIA BUT SO FAR HE'S MOST BULLISH ON MOLDOVA WE'RE ONE YEAR AHEAD OF EVERYWHERE ELSE MR EDSALL SAYS THERE'S A LOT LESS GOVERNMENT RED TAPE WE REGISTERED OUR JOINT VENTURE HERE IN TWO MONTHS ONE YEAR LATER WE'RE STILL WAITING IN RUSSIA AND UKRAINE MONSANTO CO THE US AGRICULTURAL AND CHEMICAL CONCERN IS ALSO ACTIVE IN MOLDOVA SELLING PESTICIDES FOR CORN AND VINEYARDS ONCE IT RESOLVES AN OUTSTANDING 15 MILLION DEBT WITH THE GOVERNMENT MONSANTO WOULD ALSO LIKE TO OPEN A LINE FOR PROCESSING FRUITS AND VEGETABLES SAYS IGOR STRULAT COMPANY REPRESENTATIVE ANATOL KOMAN GENERAL DIRECTOR OF THE GERMANMOLDOVAN JOINT VENTURE NAROMA & CO WHICH GROWS PLANTS FOR COLORING FLAVORING AND PERFUMING SAYS FOREIGN INVESTORS SHOULD ALSO KEEP AN EYE ON THAT SECTOR WE'VE GOT THE BEST CLIMATE FOR THE GROWTH OF PERFUMES AND FLAVORINGS MR KOMAN SAYS MOLDOVA CONTRIBUTED 40 OF THE TOBACCO GROWN IN THE FORMER SOVIET UNION AND IT REMAINS AN IMPORTANT LEAFGROWING AREA BRITAIN'S BA T INDUSTRIES PLC HAS SIGNED A LETTER OF INTENT TO IMPROVE THE QUALITY OF TOBACCO IN MOLDOVA'S 45 BILLIONCIGARETTE MARKET SAYS MICHAEL PRIDEAUX HEAD OF PUBLIC RELATIONS FOR BAT POLITICAL UNCERTAINTY OVER THE BREAKAWAY TRANSDNIESTER REGION WILL HAVE TO BE RESOLVED FOR FOREIGN INVESTORS TO FEEL CONFIDENT ABOUT MOLDOVA'S FUTURE THE REGION IS HOME TO 12 OF MOLDOVA'S POPULATION AND IS ECONOMICALLY IMPORTANT FOR CHISINAU IN 1992 FIGHTING BROKE OUT BETWEEN THE GOVERNMENT AND RUSSIANSPEAKING SEPARATISTS WHO HAD DECLARED THEIR INDEPENDENCE FROM MOLDOVA FEARING THE COUNTRY WAS MOVING TOWARD REUNIFICATION WITH ROMANIA FROM WHICH IT WAS ANNEXED IN 1940 A CEASEFIRE WAS CALLED AFTER THREE DAYS BUT THE SITUATION HAS REMAINED TENSE 9404250114 940425 PHARMACY DIRECT NETWORK OPENS WITH TRADE SUPPORT PALM SPRINGS FLA PHARMACY DIRECT NETWORK THE COMPANY FORMED BY A TRADE ASSOCIATION TO MANAGE PHARMACEUTICAL BENEFITS FOR HEALTH PLANS HAS ATTRACTED INTEREST FROM 24 DRUGSTORE CHAINS ACCORDING TO THE COMPANY THE NEW COMPANY WAS CREATED RECENTLY TO ORGANIZE CHAINDRUG STORES AND INDEPENDENT PHARMACIES TO ENTER THE MANAGEDCARE BUSINESS AND COMPETE WITH MERCK & CO'S MEDCO CONTAINMENT SERVICES INC AND MCKESSON CORP'S PCS HEALTH SYSTEMS AT THE ANNUAL MEETING OF THE NATIONAL ASSOCIATION OF CHAIN DRUG STORES A TRADE GROUP OFFICIALS OF THE NEW NETWORK SAID THE 15000 PHARMACIES RUN BY THE 24 COMPANIES REPRESENT 25 OF THE COUNTRY'S TOTAL COMMUNITY PHARMACIES THE COMPANIES' INTENTION TO JOIN THE NEW NETWORK WAS EXPRESSED BEFORE THE MEMBERSHIP DRIVE BEGAN ON FRIDAY PHARMACY DIRECT NETWORK OFFICIALLY OPENS FOR BUSINESS TODAY FIVE BOARD MEMBERS OF THE NEW COMPANY WERE ALSO ANNOUNCED 9404250113 940425 BANK OF BOSTON TOP MANAGERS KNEW OF WEAK LOANS AHEAD OF '89 DISCLOSURE BY SUZANNE ALEXANDER RYAN STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON BANK OF BOSTON CORP ACKNOWLEDGED THAT ITS SENIOR MANAGEMENT WAS AWARE OF ESCALATING PROBLEMS IN ITS LOAN PORTFOLIO BEFORE PUBLICLY DISCLOSING THE NEWS IN LATE 1989 BUT IN A RESPONSE TO ALLEGATIONS BY THE STAFF OF THE SECURITIES AND EXCHANGE COMMISSION THE COMPANY DENIED THAT ITS ALLEGED DISCLOSURE LAPSES CONSTITUTED A VIOLATION OF THE SECURITIES LAWS DETAILS OF THE STAFF'S CHARGES AND THE BANK'S RESPONSE WERE RELEASED LAST WEEK BY THE SEC IN ONE OF THE FEW REMAINING REGULATORY CASES DEALING WITH THE PROBLEM LOANS THAT MAULED THE BANKING INDUSTRY DURING THE LATE 1980S THE SEC STAFF FILED A COMPLAINT AGAINST THE BANK WITH AN SEC ADMINISTRATIVE LAW JUDGE IN JANUARY BUT DETAILS OF THE ALLEGATIONS HAD BEEN SEALED SINCE THEN IF THE ALLEGATIONS ARE UPHELD BY THE ADMINISTRATIVE LAW JUDGE WHO IS SCHEDULED TO HEAR THE CASE NEXT WEEK THE SEC HAS SAID THE JUDGE COULD ORDER THE BANK TO MAKE MOREADEQUATE DISCLOSURES IN THE FUTURE ABOUT THE QUALITY OF ITS LOANS IN ITS ARGUMENTS THE COMMISSION STAFF CHARGED THAT THE BANK'S TOP MANAGERS WERE ADVISED IN AN INTERNAL MEMO WRITTEN BY AN ANALYST AT THE BANK TO TAKE A 56 MILLION LOANLOSS PROVISION IN 1989'S SECOND QUARTER 20 MILLION MORE THAN THE BANK ULTIMATELY REPORTED IN ITS FINANCIAL STATEMENTS THE STAFF ALSO SAID THAT THE BANK HAD AMPLE EVIDENCE WHICH IT FAILED TO DISCLOSE IN THE SECOND QUARTER OF DETERIORATING QUALITY IN A 600 MILLION SYNDICATED LOAN TO G HEILEMAN BREWING CO THE LOAN SUPPORTED HEILEMAN'S LEVERAGED BUYOUT BY AUSTRALIAN FINANCIER ALAN BOND'S BOND CORP HOLDINGS COMPANIES ARE REQUIRED TO DISCLOSE TO THE SEC IN THEIR QUARTERLY FILINGS ANY PROBLEMS THAT COULD HAVE A MATERIAL IMPACT ON THEIR FINANCES IN ITS RESPONSE THE BANK SAID IT ADMITS THAT THE MEMORANDUM DATED JUNE 22 1989 PROPOSED ADDING 20 MILLION TO THE PROVISION FOR LOSSES FOR THE SECOND QUARTER OF 1989 BUT SAID THE MEMO WAS BASED ON VARIOUS ASSUMPTIONS AND HYPOTHESES THE BANK DIDN'T SAY WHY IT ELECTED NOT TO RAISE ITS LOANLOSS PROVISION THE ANALYST WHO WROTE THE MEMO WASN'T IDENTIFIED IRA STEPANIAN WAS THE BANK'S CHIEF EXECUTIVE AT THE TIME AND STILL HOLDS THAT POSITION THE SEC STAFF ALSO TOOK ISSUE WITH THE BANK'S FAILURE TO DISCLOSE THAT AN EXAMINER OF THE OFFICE OF THE COMPTROLLER OF THE CURRENCY RAISED SERIOUS QUESTIONS ABOUT THE ACCURACY OF THE BANK'S INTERNAL RISKRATING SYSTEM AND THE ADEQUACY OF THE LOANLOSS RESERVE IN JUNE 1989 THE SEC STAFF SAID THE EXAMINER RECOMMENDED THAT THE BANK ADOPT RATING DEFINITIONS THAT MORE CLOSELY MIRRORED THE OCC'S DEFINITIONS AND THAT THE BANK REASSESS THE ADEQUACY OF ITS LOANLOSS RESERVE THE BANK ACKNOWLEDGED THAT THE OCC REVIEW RAISED SERIOUS QUESTIONS ABOUT THE ACCURACY OF ITS RISKRATING SYSTEM BUT DENIED THAT THE OCC DIRECTED THE BANK TO REASSESS THE ADEQUACY OF ITS LOANLOSS RESERVE AS A RESULT OF THE OCC REVIEW THE BANK BEGAN TO RERATE ITS REALESTATE LOAN PORTFOLIO AND ULTIMATELY DOWNGRADED ABOUT 15 BILLION IN LOANS BETWEEN JULY 1 1989 AND JULY 28 1989 THE SEC STAFF CHARGED THAT THE BANK WAS AWARE BEFORE IT FILED ITS SECONDQUARTER REPORTS OF A POTENTIAL DOWNGRADE OF A 165 MILLION LOAN TO HEILEMAN TO SUPPORT ITS LEVERAGED BUYOUT BY MR BOND THE LOAN WAS BANK OF BOSTON'S SEGMENT OF THE 600 MILLION LOAN SYNDICATED TO EIGHT BANKS AS PART OF THE ORIGINAL LOAN AGREEMENT BOND CORP OFFICIALS ORALLY COMMITTED TO PROVIDE CASH SUPPORT TO HEILEMAN'S LOAN IF NECESSARY MOREOVER HEILEMAN AGREED TO REFINANCE CERTAIN SUBORDINATED DEBENTURES BY PUBLICLY SELLING HIGHYIELD SECURITIES BY JULY 1 1989 BUT IN MAY 1989 THE SEC STAFF CHARGED BOND CORP INFORMED THE BANK THAT HEILEMAN MIGHT NOT MEET THE REFINANCING DEADLINE BECAUSE OF DIFFICULTIES IN SELLING CERTAIN ASSETS IN JUNE THE STAFF SAID BOND CORP ADVISED THE BANK THAT IT WOULDN'T SUPPORT HEILEMAN'S LOAN IF HEILEMAN'S CONDITION WORSENED BANK OF BOSTON KNEW THAT HEILEMAN'S ABILITY TO CONTINUE MAKING LOAN PAYMENTS DEPENDED ENTIRELY UPON CONTINUING INFUSIONS OF FUNDS BY BOND CORP THE SEC STAFF SAID AFTER HEILEMAN DEFAULTED ON ITS AGREEMENT TO REFINANCE THE SUBORDINATED DEBENTURES IN JULY BANK OF BOSTON WAITED UNTIL SEPTEMBER TO PLACE THE HEILEMAN LOAN ON NONACCRUAL STATUS THE SEC STAFF CHARGED THE STAFF ADDED IN ITS FILING THAT BANK SENIOR MANAGEMENT ALSO IGNORED A WARNING IN THE JUNE 1989 MEMO FROM THE INTERNAL BANK ANALYST THAT SAID IF THERE IS A HIGH PROBABILITY THAT HEILEMAN WILL GO ON NONACCRUAL BY YEAR END THEN THE QUARTERLY PROVISION FOR THE SECOND QUARTER SHOULD BE INCREASED TO 70 MILLION THE ANALYST WAS THEREBY OFFERING AN ADDITIONAL INCREASE TO HIS RECOMMENDATION OF A 56 MILLION LOANLOSS PROVISION BANK OF BOSTON ACKNOWLEDGED THE MAY AND JUNE ADVISORIES FROM BOND CORP BUT DIDN'T SAY WHY THEY WEREN'T DISCLOSED IN ITS RESPONSE THE BANK SAID THAT ALTHOUGH HEILEMAN'S FAILURE TO REFINANCE THE DEBENTURES CONSTITUTED AN EVENT OF DEFAULT UNDER THE TERMS OF THE SYNDICATED LOAN THE BANK GROUP WAIVED THE FOREGOING EVENT OF DEFAULT OFFICIALS AT BANK OF BOSTON DECLINED TO COMMENT ON THE FILING OTHER THAN TO REITERATE AN EARLIER STATEMENT THAT THE BANK BELIEVES IT REPORTED FULLY BASED ON THE INFORMATION AVAILABLE TO US AT THE TIME WE BELIEVE THAT THE SEC HAS HAD THE BENEFIT OF HINDSIGHT IN BRINGING THIS PROCEEDING AND THAT ULTIMATELY WE WILL PREVAIL BANK OF BOSTON ONE OF THE LARGEST BANKS IN NEW ENGLAND WITH ASSETS OF 424 BILLION WAS HIT HARD BY REALESTATE PROBLEMS IN THE DEPRESSED REGIONAL ECONOMY IN 1989 THE BANK REPORTED A BIG LOSS IN THE THIRD QUARTER OF 1989 AND CONTINUED TO POST LOSSES THROUGH 1991 RECENTLY THE BANK HAS REPORTED IMPROVED RESULTS FOR THE 1994 FIRST QUARTER BANK OF BOSTON HAD NET INCOME OF 961 MILLION OR 82 CENTS A SHARE AFTER A 66 MILLION EXTRAORDINARY LOSS FOR THE EARLY EXTINGUISHMENT OF DEBT BANK OF BOSTON HAS REPORTED A CONTINUOUS REDUCTION IN NONPERFORMING ASSETS SINCE 1992 BUT HAS RECENTLY SHOWN SIGNS OF TROUBLE AGAIN IN THE LATEST QUARTER THE BANK CREATED A NEW CATEGORY FOR 224 MILLION OF ITS NONPERFORMING ASSETS THE ASSETS PLACED IN AN ACCELERATED DISPOSITION PORTFOLIO ARE EXPECTED TO BE SOLD QUICKLY A BANK SPOKESMAN SAID IF THESE NONPERFORMING ASSETS HADN'T BEEN TRANSFERRED TO A SEPARATE PORTFOLIO THEN THE BANK'S TOTAL NONPERFORMING ASSETS WOULD HAVE INCREASED FOR THE FIRST TIME IN THREE YEARS THIS IS NOT A SIGNAL THAT OUR NONPERFORMING ASSETS WILL NOW BEGIN TO CREEP UP EVERY QUARTER THE SPOKESMAN SAID 9404250112 940425 CANADIAN RETAIL SALES UP OTTAWA CANADIAN RETAIL SALES INCREASED IN FEBRUARY FOR THE FOURTH CONSECUTIVE MONTH RISING 09 FROM JANUARY STATISTICS CANADA A GOVERNMENT AGENCY SAID THE FEBRUARY RISE WAS BROADLY BASED AND LED BY AUTOMOTIVE AND GENERAL MERCHANDISE SALES THE AGENCY SAID THE GENERALMERCHANDISE CATEGORY INCLUDES THE WIDE RANGE OF GOODS SOLD BY DEPARTMENT STORES AND OTHER RETAILERS 9404250111 940425 GREAT EXPECTATIONS MEETING BLACKS' NEEDS WILL BE A CHALLENGE IN NEW SOUTH AFRICA WINNER OF ELECTIONS MUST PROVIDE JOBS AND SCHOOLS WHILE REASSURING WHITES WE'LL GIVE THEM 6 MONTHS' BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL ALEXANDRA SOUTH AFRICA AS DUSK FALLS KAIPHUS LETSWALO GAZES AT THE LIGHTS OF SANDTON SHIMMERING IN THE DISTANCE WHERE THE DENIZENS OF THAT PREDOMINANTLY WHITE SUBURB OF JOHANNESBURG ARE SIPPING COCKTAILS BY THEIR SWIMMING POOLS MR LETSWALO A STONE'S THROW AWAY IN THIS BLACK TOWNSHIP FETCHES WATER FROM A COMMUNAL TAP AND WARMS IT ON A PARAFFIN HEATER BEFORE FILLING HIS BATHTUB A BUCKET KEPT UNDER HIS BED HE THEN LIGHTS A CANDLE TO ILLUMINATE HIS ONEROOM SHACK ONE MAN ONE VOLT HE JOKES LONG KEPT LIGHT YEARS APART SOUTH AFRICA'S WHITES AND BLACKS WILL FORMALLY BECOME EQUAL CITIZENS WHEN THE COUNTRY HOLDS ITS FIRST MULTIRACIAL ELECTIONS BEGINNING TOMORROW CLOSING THE BOOK ON NEARLY FOUR DECADES OF APARTHEID IF OPINION POLLS ARE RIGHT THE AFRICAN NATIONAL CONGRESS IS HEADED FOR VICTORY AND NELSON MANDELA WILL BECOME SOUTH AFRICA'S FIRST BLACK PRESIDENT ONLY FOUR YEARS AFTER EMERGING FROM 27 YEARS IN PRISON BUT NOW THAT THEY ARE ON THE VERGE OF GAINING POLITICAL POWER MILLIONS OF BLACKS SUCH AS MR LETSWALO WANT ELECTRIC POWER TOO NOT TO MENTION THE JOBS AMENITIES AND OPPORTUNITIES THEY HAVE LONG BEEN DENIED THE 27YEAROLD HIGHSCHOOL DROPOUT WHO SURVIVES BY SELLING POTATOES OUTSIDE OF HIS HOME TICKS OFF A PERSONAL WISH LIST I WANT A BETTER HOUSE A JOB HEALTH CARE GOOD EQUIPMENT IN SCHOOLS AND AS MUCH MONEY AS WHITES THAT'S ALL MEETING EXPECTATIONS LIKE THOSE IS THE MOST DAUNTING CHALLENGE FACING SOUTH AFRICA'S NEXT GOVERNMENT MR MANDELA 75 YEARS OLD IS LIKELY TO BE SWEPT TO POWER BECAUSE HE EMBODIES THE HOPES OF BLACK LIBERATION BUT HE WILL BE JUDGED ON MORE MUNDANE ISSUES THE ANC'S NO 1 PROBLEM WILL BE BUYING PEOPLE'S PATIENCE SAYS SYDNEY HILIZA AN ANC ACTIVIST IN ALEXANDRA MR MANDELA WILL HAVE TO DO A DELICATE BALANCING ACT HE PROMISES TO BUILD ONE MILLION HOUSES ELECTRIFY 25 MILLION NEW HOMES PROVIDE 10 YEARS OF FREE EDUCATION TO ALL AND REDISTRIBUTE LAND ALL AT A TIME WHEN THE PRICES OF GOLD AND PLATINUM PRIME SOURCES OF SOUTH AFRICA'S INCOME ARE SLUGGISH AT THE SAME TIME HE MUST MAINTAIN FISCAL RESPONSIBILITY TO WIN THE COOPERATION OF THE WHITE MINORITY AND THE INTERNATIONAL COMMUNITY AT STAKE SOME SAY ISN'T ONLY THE SUCCESS OF SOUTH AFRICA'S TRANSITION BUT THE WHOLE CONTINENT'S FUTURE BLUNTLY PUT SOUTH AFRICA IS AFRICA'S LAST AND BEST CHANCE AT GETTING THINGS RIGHT GREG MILLS DIRECTOR OF STUDIES OF THE SOUTH AFRICAN INSTITUTE OF INTERNATIONAL AFFAIRS WRITES IN THE STAR A JOHANNESBURG NEWSPAPER ANY FAILURE WILL HASTEN THE EXODUS OF WORLD INTEREST AND CONCERN BUT THE NEW SOUTH AFRICA STARTS BURDENED BY A BITTER LEGACY THAT DEMANDS QUICK REDRESS WHITE SOUTH AFRICA IS A DEVELOPED NATION BLACK SOUTH AFRICA IS A TYPICAL AFRICAN COUNTRY PERCAPITA INCOME FOR BLACKS IS ABOUT ONETENTH THAT OF WHITES THE URBAN FOUNDATION A PRIVATE SOCIALRESEARCH ORGANIZATION ESTIMATES THAT 95 OF BLACK FAMILIES EARN LESS THAN 750 RAND 220 A MONTH MORE THAN A QUARTER OF SOUTH AFRICA'S BLACKS ARE UNEMPLOYED AND ANOTHER QUARTER EKE OUT AN EXISTENCE IN THE INFORMAL ECONOMY ABOUT 3 OF WHITES ARE JOBLESS THERE ARE 60 TELEPHONE LINES FOR EVERY 100 WHITES THERE IS ONE PHONE LINE FOR EVERY 100 BLACKS BLACKS MAKE UP ABOUT 75 OF SOUTH AFRICA'S POPULATION OF 40 MILLION PEOPLE BUT OWN LESS THAN 15 OF THE LAND CONTROL 2 OF THE NATIONAL WEALTH AND HOLD 24 OF MANAGERIAL JOBS THE GOVERNMENT SPENDS 35 TIMES MORE ON EDUCATION FOR WHITES AND BLACKS FORM THE OVERWHELMING MAJORITY OF THE SEVEN MILLION PEOPLE WHO LIVE IN SHACKS THE 12 MILLION WHO DON'T HAVE ACCESS TO CLEAN WATER THE 14 MILLION WHO CAN'T READ AND THE 23 MILLION WHO HAVE NO ELECTRICITY THERE ARE THOSE WHO WOULD LIKE US TO BELIEVE THAT THE PAST DOESN'T EXIST THAT DECADES OF APARTHEID RULE HAVE SUDDENLY DISAPPEARED MR MANDELA HAS SAID BUT THE ECONOMIC AND SOCIAL DEVASTATION OF APARTHEID REMAINS THAT DEVASTATION IS APPARENT IN BLACK TOWNSHIPS LIKE ALEXANDRA AND THAT POINTS TO AN IRONY THAT COULD HOUND MR MANDELA THE TOWNSHIPS ARE LARGELY RESPONSIBLE FOR BRINGING DOWN APARTHEID THROUGH STRIKES AND BOYCOTTS BUT NOW DWELLERS ARE DEMANDING THAT A BLACK GOVERNMENT PROVIDE THEM WITH THE SERVICES THEY HAVE LONG BEEN LACKING AND ARE THREATENING TO USE THEIR TRADITIONAL TACTICS IF THE NEW GOVERNMENT CAN'T FIND THE MONEY TO MEET THEIR ASPIRATIONS WE'LL GIVE THEM SIX MONTHS SAYS KHENSANI NDLOMO A LIBRARIAN AT A HIGH SCHOOL IN ALEXANDRA IF IN SIX MONTHS NOTHING'S BEEN DONE WE'LL TOYITOYI HE SAYS REFERRING TO THE PROTEST DANCE THAT HAS BECOME THE ANC'S TRADEMARK THERE IS A LOT TO TOYITOYI ABOUT IN ALEXANDRA THOUGH IT IS SITUATED IN THE HEART OF WHAT IS BELIEVED TO BE THE HIGHEST CONCENTRATION OF WEALTH IN SOUTHERN AFRICA ALEXANDRA IS AN ISLAND OF WRETCHEDNESS ONCE A MIXEDRACE SETTLEMENT ALEXANDRA FOUNDED IN 1912 WAS CONSIDERED A BLACK SPOT IN A WHITE AREA AND WAS SLATED FOR DESTRUCTION THE GOVERNMENT BEGAN MOVING ITS RESIDENTS TO OTHER TOWNSHIPS IN THE EARLY 1970S BUT THEY PUT UP SUCH FIERCE RESISTANCE THAT ALEXANDRA WAS REPRIEVED IN 1979 ITS STAND WAS PUNISHED BY NEGLECT PROBLEMS WORSENED WITH THE SCRAPPING OF SUCH APARTHEID LAWS AS INFLUX CONTROL WHICH BROUGHT THOUSANDS MORE PEOPLE STREAMING INTO THE AREA IN SEARCH OF JOBS IN JOHANNESBURG TODAY SAYS MR HILIZA THE ANC ACTIVIST THE SCARS OF APARTHEID ARE VISIBLE IN EVERY STREET YOU DRIVE THROUGH IN ALEXANDRA AT LEAST 360000 PEOPLE LIVE WITHIN 15 SQUARE MILES ALL AVAILABLE SPACE HAS BEEN TAKEN UP BY WOODANDCORRUGATEDIRON SHACKS THOUGH SOME HOUSES HAVE RUNNING WATER MOST OF ALEXANDRA'S RESIDENTS GET WATER FROM COMMUNAL TAPS IN SOME SETTLEMENTS TOILETS ARE BUCKETS PLACED IN OUTHOUSES AND SHARED BY RESIDENTS AND COLLECTED ONLY EVERY FEW DAYS IT'S VERY STINKING SAYS SIMON KHUMALO 26 DOGS AND GOATS PICK AT THE HEAPS OF GARBAGE THAT LITTER THE POTHOLED STREETS THE UNEMPLOYED AN ESTIMATED 55 OF THE ADULT POPULATION LOITER ON THE STREETS OR IN BEER HALLS CALLED SHEBEENS THE MOOD IS A VOLATILE MIXTURE OF ANGER AND HOPE IT'S HOPE THAT KEEPS THIS PLACE GOING SAYS MR HILIZA THERE'S 500 BITTERNESS BUT THERE'S 600 PATIENCE WAITING IN LINE FOR FOOD HANDOUTS 27YEAROLD JESSI MOQHAE EXPRESSES THIS MIXTURE LIFE HERE'S PERFECT SHE SAYS ALL THAT'S MISSING IS DECENT HOUSES JOBS SERVICES AND CLEANING UP THE PLACE THAT IS JUST AS WELL BECAUSE MRS MOQHAE CAN'T PAY SHE LOST HER JOB AS A WAITRESS A YEAR AGO AND IS GETTING BY ON HER HUSBAND'S PAY AS A PARTTIME DRIVER SHE SAYS SHE HOPES SHE WILL GET A JOB IF AND WHEN MR MANDELA COMES TO POWER BECAUSE THAT IS WHAT HE HAS PROMISED BUT SHE IS DOUBTFUL THE TRUTH IS THERE ARE NO JOBS IN SOUTH AFRICA SHE SAYS FOR US IT'S NO JOB NO FOOD NO MONEY AND OFTEN NO EDUCATION WHICH MAKES IT EVEN HARDER TO FIND A JOB IT TAKES ONLY A GLANCE AT THE WALLS OF REALUGILE HIGH SCHOOL TO SEE THAT THE LIBERATION FIRST EDUCATION LATER SLOGAN THAT HAS ANIMATED BLACK STUDENTS SINCE THE 1976 SOWETO RIOTS RESONATES IN ALEXANDRA ONE SETTLER ONE BULLET IS PAINTED ON ANOTHER WALL STUDENTS SAY THERE IS OFTEN ONE TEXTBOOK FOR FIVE STUDENTS AND EVEN CHAIRS AND TABLES ARE MISSING FOR THE 60 TO 70 STUDENTS IN EACH CLASS STUDENTS SHARE SEATS SAYS 19YEAROLD ABNER MOEKETSI OTHERS STUDY STANDING UP THABO MORURU 22 A REALUGILE DROPOUT SAYS EVERYTHING WAS MISSING EVEN TEACHERS ON THIS PARTICULAR DAY SCHOOL SHOULD BE OPEN BUT THE GATES ARE PADLOCKED THE STUDENTS SAID THEY'LL COME AFTER THE ELECTIONS EXPLAINS BIOLOGY TEACHER THABO CHAOANE MATTEROFFACTLY WE DON'T HAVE A LOST GENERATION WE HAVE A DESTROYED GENERATION DESTROYED BY APARTHEID RULES IF IT WEREN'T FOR APARTHEID THESE PEOPLE WOULD BE IN SCHOOL MEANWHILE A WHITE CHILD IS IN SCHOOL TODAY BEING EDUCATED AND GETTING AHEAD WHILE LESS THAN 10 OF MY STUDENTS GET JOBS MR CHAOANE A SYMPATHIZER OF THE RADICAL PAN AFRICANIST CONGRESS HAS A RADICAL SOLUTION IN THE NEW SOUTH AFRICA I'M GOING TO RESIGN AND BE A TRAFFIC COP I'LL GIVE WHITE SETTLERS 1000RAND FINES BECAUSE I DON'T LIKE THE LOOK OF THEIR TIRES I'LL BE FUND RAISING FOR THE GOVERNMENT MANY IN ALEXANDRA PREFER BEING ON THE OTHER SIDE OF THE LAW VIOLENCE AND CRIME HAVE BECOME ENDEMIC ON WEEKENDS ALEXANDRA'S ONLY CLINIC TREATS AN AVERAGE OF 25 STABBINGS AND GUNSHOT WOUNDS A DAY LIKE MANY TOWNSHIPS SOME OF THE VIOLENCE IS POLITICAL PITTING ANC SUPPORTERS AGAINST BACKERS OF THE ZULUBASED INKATHA FREEDOM PARTY IN 1991 AND 1992 FIGHTING WAS SO FIERCE THAT OVER 3000 FAMILIES LIVING CLOSE TO THE HOSTELS OCCUPIED BY INKATHA BACKERS WERE FORCED TO FLEE THEIR HOMES TWO YEARS LATER THEIR HOMES ARE STILL ABANDONED AND THEY LIVE SOMETIMES 20 TO A ROOM IN OFFICIAL BUILDINGS AS SQUATTERS THE AREA CLOSE TO THE HOSTELS IS CALLED BEIRUT AND IS STILL A NOGO AREA BUT MUCH OF THE VIOLENCE STEMS FROM ANGER AND POVERTY ABOUT 20 SMALL COMPANIES HAVE BEEN DRIVEN OUT OF THE NEARBY INDUSTRIAL AREA THERE WAS THEFT MURDER BUILDINGS WERE BURNT DOWN SAYS JO MARAIS A LOCAL MEMBER OF SANDTON'S TOWN COUNCIL COMPANIES WOULDN'T SEND IN SUPPLIERS BECAUSE THEIR CARS WERE HIJACKED EMPLOYEES WERE ATTACKED AS THEY LEFT THEIR CARS A LOT OF IT WAS JUST SENSELESS CRIME SIMON AND HIS FRIENDS STEAL AND RESELL CAR RADIOS IF I DIDN'T DO THIS HE SAYS WHERE WOULD I GET MONEY TO EAT SIMON BLAMES APARTHEID WE WERE DISCRIMINATED AGAINST AND THERE WERE NO OPPORTUNITIES FOR US I'M VERY VERY VERY ANGRY BUT HE HASN'T LOST HOPE MANDELA HAS PROMISED US A LOT OF THINGS MR MANDELA HAS ISSUED A WARNING TOO NOBODY MUST THINK THAT WHEN YOU COME BACK FROM THE VOTING STATION YOU WILL FIND A DECENT HOUSE WAITING FOR YOU OR A JOB HE SAID AT A RALLY LAST WEEK IT'S GOING TO TAKE US SOME YEARS YOU MUST BE PATIENT CAN HE DELIVER ANC ECONOMICS HEAD TREVOR MANUEL SAYS THE PARTY'S FIVEYEAR RECONSTRUCTION AND DEVELOPMENT PLAN WILL COST 39 BILLION RAND ABOUT 11 BILLION AND COULD BE FINANCED WITHOUT NEW TAXES BY CUTTING DEFENSE SPENDING PARING THE NUCLEAR PROGRAM SCRAPPING SUCH APARTHEID STRUCTURES AS THE 10 INDEPENDENT OR SELFGOVERNING TRIBAL HOMELANDS AND WIPING OUT CORRUPTION THE ANC ALSO ENVISIONS A MASSIVE PUBLICWORKS PROGRAM THAT WOULD BOTH PUT PEOPLE TO WORK AT MINIMAL WAGES AND HELP OVERCOME THE HOUSING SHORTAGE AND OTHER PROBLEMS BUT THE RULING NATIONAL PARTY ACCUSES THE ANC OF A DELIBERATE AND SPECTACULAR UNDERESTIMATE SOME SAY THAT EVEN MORE DIFFICULT THAN UNDOING THE COST OF APARTHEID WILL BE UNDOING THE CULTURE OF APARTHEID THE DAMAGE THAT WAS CAUSED CAN'T BE EASILY REMOVED BECAUSE IT WAS CAUSED IN PEOPLE'S BRAINS SAYS SOLLY MASHILOANE PRINCIPAL OF ALEXANDRA'S PHOLOSHO PRIMARY SCHOOL THE BIG QUESTION IS WHETHER AN ENTIRE GENERATION WEANED ON THE POLITICS OF UNGOVERNABILITY WILL SUDDENLY BECOME GOVERNABLE PEOPLE HAVE BEEN SO HARDENED BY APARTHEID THAT THEY'RE NUMBED SAYS JACOB MANTSHO A SOCIAL WORKER 9404250110 940425 BUSINESS BRIEF US INTEC INC FIRM TO POST 175000 LOSS FOR QUARTER DUE TO WEATHER US INTEC INC SAID A WEATHERRELATED SLOWDOWN IN COMMERCIAL ROOFING OPERATIONS WILL PROMPT THE PORT ARTHUR TEXAS COMPANY TO REPORT A FIRSTQUARTER LOSS OF ABOUT 175000 OR SIX CENTS A SHARE ON SALES OF ABOUT 16 MILLION IN LAST YEAR'S FIRST QUARTER THE COMPANY HAD EARNINGS OF 218000 OR SEVEN CENTS A SHARE ON SALES OF 164 MILLION THE COMPANY SAID THAT ITS FIRST QUARTER IS TYPICALLY THE SLOWEST AND THAT PENTUP DEMAND SHOULD INCREASE SALES AND EARNINGS THE REST OF THE YEAR 9404250109 940425 CLINTON PLANS TO SCRAP POLICY FORCING CITIES TO MULL PRIVATIZING TRANSIT ROUTES BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION PLANS TO SCRAP A REAGANERA POLICY THAT FORCES CITIES EVERY THREE YEARS TO CONSIDER TURNING OVER MASSTRANSIT ROUTES TO PRIVATE COMPANIES THE ANNOUNCEMENT WHICH COULD COME AS EARLY AS TODAY WILL BE HAILED BY MANY URBAN TRANSIT SYSTEMS THEY SAY THE PRIVATIZATION POLICY CREATED AN UNNECESSARY AND EXPENSIVE PAPERWORK BURDEN AND THAT THEY WILL STILL TURN TO PRIVATE COMPANIES WHEN IT MAKES SENSE TO PROVIDE HANDICAPPEDACCESS VAN RIDES FOR EXAMPLE UNIONS ALSO PUSHED FOR ABOLISHING THE PRIVATIZATION GUIDELINES BUT PRIVATE BUS AND CAB OPERATORS HAVE PROTESTED SAYING CITIES MAY FIND WAYS TO FREEZE OUT ENTREPRENEURS IF THE GUIDELINES ARE THROWN OUT IT'S A DRACONIAN SOLUTION TO A NONPROBLEM SAYS SUSAN PERRY A LOBBYIST FOR THE AMERICAN BUS ASSOCIATION WHICH REPRESENTS PRIVATE BUS OPERATORS LAWMAKERS INCLUDING SENATE MINORITY LEADER ROBERT DOLE R KAN AND SENATE MAJORITY LEADER GEORGE MITCHELL D MAINE ALSO HAVE DEFENDED THE GUIDELINES SO HAS THE SMALL BUSINESS ADMINISTRATION AND DAVID OSBORNE AN ADVISER TO VICE PRESIDENT AL GORE'S REINVENTING GOVERNMENT EFFORT CALLED THE FEDERAL TRANSIT ADMINISTRATION'S PRIVATIZATION POLICY A MODEL PROGRAM COMPANIES THAT HAVE GAINED FOOTHOLDS IN PUBLIC TRANSIT INCLUDE LARGE TRANSPORTATION CONCERNS SUCH AS LAIDLAW INC THAT OPERATE WHOLE SECTIONS OF A BUS NETWORK AND SMALL CAB COMPANIES THAT SHUTTLE SUBURBANITES TO AN OUTER TRANSIT STATION SO THE SYSTEM DOESN'T HAVE TO DEVOTE A REGULAR ROUTE TO THEM THE GUIDELINES THAT THE REAGAN ADMINISTRATION PUT IN PLACE IN THE MID1980S DON'T FORCE TRANSIT SYSTEMS TO USE SUCH PRIVATE CONTRACTORS TO RECEIVE FEDERAL GRANTS BUT THEY DO REQUIRE THE PUBLIC SYSTEMS TO COMPARE THEIR COSTS FOR SERVING A ROUTE WITH PRIVATE OPERATORS' COSTS AND THE GUIDELINES REQUIRE THE PUBLIC AGENCIES TO INCLUDE OVERHEAD SUCH AS BUILDING UPKEEP AND THE SALARIES OF MANAGERS AND SCHEDULERS WHEN THEY CALCULATE THEIR COSTS SAN ANTONIO'S BUS SYSTEM SAID IT SPENT 28912 JUST TO DEVELOP AN ACCOUNTING MODEL FOR ITS ROUTES AND AN ADDITIONAL 19125 TO DEFEND IT AGAINST A CHALLENGE BY A PRIVATE COMPANY AND TRANSIT REPRESENTATIVES SAY THE FULLY ALLOCATED COST MODEL PUTS THE PUBLIC AGENCY AT AN UNFAIR DISADVANTAGE BECAUSE SOME OF THE FIXED COSTS COULDN'T BE REDUCED EVEN IF THE AGENCY DID PARCEL OFF ROUTES TO OTHERS ADMINISTRATION OFFICIALS SAY THEY AREN'T BACKING AWAY FROM PRIVATIZATION AS A PHILOSOPHY AND THAT REVOKING THE GUIDELINES MAY HAVE LESS EFFECT THAN BOTH SIDES CLAIM FOR ONE THING UNDER A 1991 LAW PUBLIC TRANSIT AGENCIES ARE BEING PUSHED TO KEEP PRIVATE COMPANIES INFORMED OF POTENTIAL ROUTE EXPANSIONS ALSO SOME STATES INCLUDING CALIFORNIA AND COLORADO HAVE EMBRACED PRIVATIZATION ON THEIR OWN MORTIMER DOWNEY DEPUTY TRANSPORTATION SECRETARY SAID THAT NOBODY HAS BEEN ABLE TO COME UP WITH STRONG EXAMPLES OF DECISIONS THAT WERE SWAYED BY THE GUIDELINES ROLAND MROSS A VICE PRESIDENT OF MAYFLOWER GROUP INC'S MAYFLOWER CONTRACT SERVICES SUBSIDIARY WHICH OPERATES PART OF THE LOS ANGELES DENVER AND PHOENIX BUS SYSTEMS SAID PRIVATE BUS OPERATORS ARE ALREADY SHIFTING THEIR EFFORTS FROM LOBBYING TO MARKETING IF DECISIONS ARE MADE AT THE LOCAL LEVEL THAT'S WHERE WE'LL HAVE TO CONCENTRATE HE SAID 9404250108 940425 LOUISIANA SEEKS REBID OF CASINO PACT PROMUS GROUP LIKELY TO BE PICKED AGAIN BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL LOUISIANA'S ATTORNEY GENERAL CALLED FOR THE REBIDDING OF A CONTRACT TO RUN THE STATE'S ONLY LANDBASED CASINO IN NEW ORLEANS SCRAPPING AN EARLIER AGREEMENT WITH A SUBSIDIARY OF PROMUS COS AND ITS PARTNERS THE LEGAL OPINION BY ATTORNEY GENERAL RICHARD P IEYOUB WHICH AT THE LEAST WILL DELAY THE OPENING OF THE PROJECT BY SEVERAL WEEKS CAUGHT INVESTORS BY SURPRISE AND SENT PROMUS'S STOCK REELING ALTHOUGH THE PROMUS GROUP IS WIDELY EXPECTED TO WIN THE REBIDDING THE MOVE ADDS A NOTE OF POLITICAL UNCERTAINTY TO A COMPLEX PROCESS THAT BEGAN NEARLY TWO YEARS AGO PROMUS'S STOCK TRADED AS LOW AS 29 ON FRIDAY BEFORE REBOUNDING TO CLOSE OFF 1625 OR 48 AT 32 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MAKING IT ONE OF THE BIG BOARD'S MOST ACTIVELY TRADED STOCKS WITH MORE THAN 56 MILLION SHARES CHANGING HANDS IN AN OPINION ISSUED TO STATE OFFICIALS OVERSEEING THE CASINO MR IEYOUB RECOMMENDED THE REBID BECAUSE OF SEVERAL CHANGES MADE TO THE PROMUS GROUP'S PLAN SINCE IT WAS ACCEPTED LAST AUGUST THOSE CHANGES INCLUDE THE EXPANSION OF THE TOTAL PROJECT COST TO 720 MILLION FROM 395 MILLION AND THE ADDITION OF ANOTHER INVESTOR GROUP GRAND PALAIS CASINO INC TO THE PARTNERSHIP PROMUS SAID IT IS HIGHLY CONFIDENT THAT ITS HARRAH'S JAZZ CO PARTNERSHIP WILL BE SELECTED AGAIN SEVERAL OTHER GROUPS HAD BID ON THE PROJECT IN THE EARLY STAGES BUT LOCAL OFFICIALS SAID MOST AREN'T EXPECTED TO RESUBMIT PROPOSALS BECAUSE THE HARRAH'S GROUP HOLDS THE LEASE FOR THE ONLY AUTHORIZED CASINO SITE LAST MONTH PROMUS HAD SAID IT EXPECTED TO OPEN A 70000SQUAREFOOT TEMPORARY CASINO BY THE THIRD QUARTER WHILE THE 200000SQUAREFOOT PERMANENT COMPLEX WAS SCHEDULED TO OPEN BY SPRING 1995 MR IEYOUB TOLD STATE REGULATORS IN A LETTER THAT HE DID NOT ANTICIPATE THE NECESSITY OF A PROTRACTED REBID PROCESS AND A SPOKESMAN FOR MR IEYOUB SAID THE PROCESS COULD BE COMPLETED IN 60 DAYS ANALYSTS SAID THE STRONG MARKET REACTION OVERSHADOWS THE FACT THAT POLITICAL TWISTS AND TURNS ARE LIKELY TO AFFECT MANY IF NOT MOST EMERGING CASINO JURISDICTIONS AS THE INDUSTRY CONTINUES TO SPREAD ACROSS NORTH AMERICA BRUCE TURNER AN ANALYST WITH SALOMON BROTHERS SAID HE REMAINED BULLISH ON PROMUS AND EXPECTS THE REBIDDING TO DELAY THE FINAL PROJECT BY A MONTH OR SO 9404250107 940425 MARKETING & MEDIA NATIONAL MEDIA SUIT IS FILED IN US COURT AGAINST VALUEVISION PHILADELPHIA NATIONAL MEDIA CORP FILED SUIT IN FEDERAL COURT HERE AGAINST VALUEVISION INTERNATIONAL INC SEEKING 20 MILLION IN DAMAGES STEMMING FROM A COLLAPSED ACQUISITION AGREEMENT ON THURSDAY VALUEVISION WITHDREW ITS TENDER OFFER OF 150 MILLION OR 1150 A SHARE FOR NATIONAL MEDIA CLAIMING INACCURACIES IN NATIONAL MEDIA'S REPRESENTATIONS AND WARRANTIES IN THE MERGER AGREEMENT AND THAT THERE HAD BEEN ADVERSE REGULATORY DEVELOPMENTS INVOLVING NATIONAL MEDIA A PHILADELPHIA TELEVISION MARKETER ON FRIDAY MARK PAYNE A SPOKESMAN FOR VALUEVISION AN EDEN PRAIRIE MINNBASED HOMESHOPPING CONCERN DECLINED TO SPECIFY VIOLATIONS OF THE AGREEMENT OR REGULATORY CONCERNS CITING THE NATIONAL MEDIA LAWSUIT NATIONAL MEDIA HOWEVER DISPUTED VALUEVISION'S CLAIM THAT THE AGREEMENT HAD BEEN VIOLATED IT IS ABSOLUTELY CLEAR THAT VALUEVISION BACKED OUT OF THIS DEAL ONLY BECAUSE THEY FAILED TO OBTAIN THEIR FINANCING SAID JOHN J TURCHI JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NATIONAL MEDIA THE CLAIM THAT NATIONAL MEDIA IS RESPONSIBLE FOR THE TERMINATION IS PATENTLY RIDICULOUS IN ITS LAWSUIT NATIONAL MEDIA CLAIMS VALUEVISION IS REQUIRED TO PAY 7 MILLION TO TERMINATE THE ACQUISITION AGREEMENT MR PAYNE OF VALUEVISION SAID THE UNSPECIFIED VIOLATIONS PERMIT THE COMPANY TO TERMINATE THE DEAL WITHOUT PAYMENT WE BELIEVE THE LAWSUIT IS WITHOUT MERIT AND INTEND TO DEFEND OURSELVES VIGOROUSLY MR PAYNE ADDED THAT VALUEVISION COULD'VE COMPLETED THE FINANCING BUT IT WOULD NOT HAVE BEEN ECONOMICAL IF WE WOULD'VE COMPLETED THIS DEAL UNDER CURRENT CONDITIONS VALUEVISION HAD INTENDED TO FUND THE PURCHASE IN PART WITH PROCEEDS OF A PRIVATE ISSUE OF DEBT AND COMMONSTOCK WARRANTS BUT THE OFFERING WAS POSTPONED IN MIDMARCH BECAUSE OF MARKET CONDITIONS 9404250106 940425 HILLARY CLINTON BURNISHES IMAGE IN PRESS SESSION FIRST LADY IS QUESTIONED ON PERSONAL FINANCES BUT SHEDS LITTLE LIGHT BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HILLARY RODHAM CLINTON'S ADROIT NEWS CONFERENCE ON HER PERSONAL FINANCES PROVIDED LITTLE NEW INFORMATION BUT HELPED REPAIR HER IMAGE AT A TIME WHEN THE ADMINISTRATION WILL NEED HER ASSISTANCE IN PUSHING HEALTHCARE LEGISLATION THROUGH CONGRESS THE FIRST LADY FACED THE WHITE HOUSE PRESS CORPS FOR MORE THAN AN HOUR LAST FRIDAY ANSWERING QUESTIONS ON HER WHITEWATER INVESTMENT AND COMMODITIES TRADING SHE APPEARED CALM AND IN CONTROL THROUGHOUT THE SESSION AND SEEMED TO SUGGEST THAT ANY MISTAKES OR MISJUDGMENTS SHE MADE AROSE FROM THE MIDWESTERN VALUES TAUGHT BY HER PARENTS SHE TRADED COMMODITIES SHE SAID BECAUSE SHE HAD BEEN TAUGHT TO SAVE AND INVEST FOR HER FAMILY SHE PREVIOUSLY HAD REFUSED TO ANSWER REPORTERS' INQUIRIES BECAUSE SHE HAD BEEN RAISED TO BELIEVE SHE WAS ENTITLED TO A ZONE OF PRIVACY THE PERFORMANCE WAS WIDELY VIEWED AS A SUCCESS BY THOSE IN THE WHITE HOUSE AND IT WAS CLEAR MRS CLINTON COULD HAVE HELPED HER CAUSE BY COMING FORWARD SOONER COMING AT A TIME WHEN WHITEWATER HAD BEEN PUSHED OFF THE FRONT PAGES MRS CLINTON'S APPEARANCE WAS A SURPRISE MANEUVER CLEARLY HOWEVER SHE FELT IT WAS TIME TO TAKE THE OFFENSIVE HER EXPLANATION FOR WAITING SO LONG WAS I JUST DIDN'T UNDERSTAND ENOUGH ABOUT BEING ACCESSIBLE TO YOU OR BEING ACCESSIBLE IN WASHINGTON BUT FRIENDS SAY SHE HAS BEEN SEETHING BEHIND THE SCENES AT THE NEGATIVE NEWS COVERAGE THE EXTRAORDINARY EVENT DID ILLUSTRATE AGAIN HOW DIFFERENTLY THIS WHITE HOUSE OPERATES FROM OTHERS THE SENIOR ADVISERS TO THE PRESIDENT DIDN'T FIND OUT ABOUT THE PLANS FOR THE NEWS CONFERENCE UNTIL FRIDAY MORNING AND MRS CLINTON TOLD THE PRESIDENT SHE PLANNED TO DO IT JUST THE NIGHT BEFORE IF THE CONTROVERSY OVER THE CLINTONS' INVESTMENT IN WHITEWATER DEVELOPMENT CORP FADES AS THE WHITE HOUSE HOPES MRS CLINTON'S FRIDAY APPEARANCE WILL MARK A TURNING POINT WHEN CONFRONTED WITH TOUGH INQUIRIES SHE OFTEN STATED THAT SHE DIDN'T KNOW OR COULDN'T RECALL BUT HER SOOTHING PRESENCE A CONTRAST TO PRESIDENT CLINTON'S FREQUENT DEFENSIVENESS WILL HELP REASSURE THE PUBLIC THAT THE WHITE HOUSE ISN'T IN A PANIC AT THE NEWS CONFERENCE HELD IN THE STATE DINING ROOM A LESS FORMAL SETTING THAN OTHER BRIEFING ROOMS MRS CLINTON SPORTED A PINK SWEATER OUTFIT AND A NEW HAIRDO WHILE STYLE CARRIED THE DAY SUBSTANCE WAS SOMEWHAT LACKING FOR INSTANCE WHEN MRS CLINTON WAS ASKED ABOUT HER FIRST DAY OF COMMODITIES TRADING IN OCTOBER 1978 THAT TURNED A 1000 INVESTMENT INTO A 5300 PROFIT SHE COULD PROVIDE NO DETAILS ON HOW SHE DID IT MARKET EXPERTS CITE IT AS HER MOST PUZZLING TRANSACTION BECAUSE HER INVESTMENT FELL WELL SHORT OF THE FUNDS NEEDED TO CONTROL ENOUGH CONTRACTS TO MAKE THAT MUCH MONEY SIMILARLY MRS CLINTON SAID SHE DIDN'T KNOW HOW WHITEWATER HAD PAID OFF DEBTS IN THE 1980S AT A TIME WHEN IT WAS SUPPOSED TO BE FEELING FINANCIAL STRAINS AND SHE DIDN'T DISCLOSE WHAT RECORDS WERE TAKEN FROM DEPUTY WHITE HOUSE COUNSEL VINCENT FOSTER'S OFFICE AFTER HIS SUICIDE LAST JULY BUT SAID HE WAS ACTING AS A COORDINATOR IN HELPING THE CLINTONS SET UP A BLIND TRUST MRS CLINTON DID WORK HARD AT REDEFINING HERSELF FOLLOWING THE HARSH PICTURES DRAWN IN RECENT DAYS SHE DEFENDED HER INVESTMENTS BY NOTING THAT WHEN SHE WAS A CHILD HER FATHER HAD HER READ THE STOCK TABLES OF THE NEWSPAPER I WAS RAISED TO BELIEVE THAT EVERY PERSON HAD AN OBLIGATION TO TAKE CARE OF THEMSELVES AND THEIR FAMILY SHE SAID FURTHER MRS CLINTON SAID SHE FACED CONFLICTS THAT OTHER FIRST LADIES DIDN'T HAVE TO CONFRONT SHE POINTED OUT THAT SHE WAS THE FIRST TO HAVE HER OWN CAREER BEFORE COMING TO WASHINGTON I'M TRYING TO FIND MY WAY THROUGH IT AND TRYING TO FIGURE OUT HOW BEST TO BE TRUE TO MYSELF AND HOW TO FULFILL MY RESPONSIBILITIES TO MY HUSBAND AND MY DAUGHTER AND THE COUNTRY SHE SAID IN EXPLAINING HER ADJUSTMENTS IN A CONTRAST TO THE PORTRAYAL OF HER AS A CALCULATING AND INTUITIVE LAWYER MRS CLINTON SAID THAT SHE HAD MADE MISSTEPS IN DEALING WITH WHITEWATER BECAUSE SHE JUST DIDN'T UNDERSTAND THE UNIQUE CULTURE OF WASHINGTON SHE ACKNOWLEDGED FOR INSTANCE THAT SHE WAS AGAINST NAMING A SPECIAL COUNSEL TO INVESTIGATE THE WHITEWATER MATTER BUT THESE COMMENTS DIDN'T REFLECT THE STRENGTH OF HER OPPOSITION JUST A WEEK BEFORE THE DECISION WAS MADE MRS CLINTON AT A MEETING IN CHIEF OF STAFF THOMAS MCLARTY'S OFFICE DELIVERED A SPIRITED ARGUMENT AGAINST THE PRESIDENT'S SENIOR AIDES WHO SUPPORTED ONE ON FRIDAY HOWEVER SHE SAID THAT HER SENSE OF PRIVACY LED HER TO BE LESS UNDERSTANDING THAN I NEEDED TO BE OF BOTH THE PRESS AND THE PUBLIC'S INTEREST AS WELL AS RIGHT TO KNOW THINGS ABOUT MY HUSBAND AND ME 9404250104 940425 POLITICS & POLICY NIXON'S POLITICAL LIFE UNIQUELY INTERMINGLED THE GRANDEST VICTORIES AND GRIMMEST DEFEATS BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SOMETIMES HE WAS AMONG THE BEST OF PRESIDENTS SOMETIMES TOO HE WAS AMONG THE VERY WORST NO PRESIDENT IN AMERICAN HISTORY MANAGED TO COMBINE SO MANY SOARING ACCOMPLISHMENTS WITH SO MANY SORDID DEFEATS AS DID RICHARD MILHOUS NIXON HE DIED FRIDAY NIGHT IN A NEW YORK HOSPITAL AFTER SUFFERING A STROKE ON APRIL 18 AT HIS HOME IN PARK RIDGE NJ HE WAS 81 YEARS OLD THOUGH DRIVEN FROM THE WHITE HOUSE IN DISGRACE ALMOST 20 YEARS AGO HE MANAGED TYPICALLY TO INVENT A NEW NIXON A WORLDTRAVELING AUTHOR AND STATESMAN WHO IN THE END SOFTENED THE MEMORY OF THE ORIGINAL OLD NIXON THE MEANSPIRITED MISTRUSTFUL POLITICIAN WHO BETRAYED HIMSELF AND HIS COUNTRY DURING HIS FINAL WATERGATE YEARS IN THE PRESIDENCY IT WAS ONE OF MANY POSITIVE ACHIEVEMENTS IN AN EXTRAORDINARILY LONG CAREER THAT DEFIES EASY ANALYSIS MR NIXON LEAVES A LEGACY OF ACCOMPLISHMENTS THAT HISTORIANS WILL FIND COMPELLING ABROAD AN OPEN NOWENTREPRENEURIAL CHINA HE AND HIS FOREIGN POLICY GURU HENRY KISSINGER MADE THAT POSSIBLE AND HERE AT HOME A REPUBLICAN PARTY INCREASINGLY ANCHORED IN THE OLD AND THE NEW SOUTH HE AND HIS ADVISERS INVENTED THE SOCALLED SOUTHERN STRATEGY THAT MR NIXON CAME TO BESTRIDE THE WORLD STAGE MARKS A TRIUMPH OF THE WILL OVER THE BODY MR NIXON WAS A CLUMSY MAN IN WORD HE WAS VIRTUALLY INCAPABLE OF MAKING SMALL TALK AND GESTURE IMAGES OF HIM IN ACTION PERSIST EXPANDING FOR EXAMPLE ON THE GLOBAL VILLAGE THEME HOW THE WORLD WAS GROWING SMALLER EVERY DAY THE WORDS WERE ALL RIGHT THE GESTURES WERE ALL WRONG AS HE TALKED ABOUT THE WORLD GROWING SMALLER HE KEPT THROWING HIS ARMS WIDER THE CROWD GRASPED THE WORDS BUT WAS PUZZLED A LITTLE BY WHAT HE WAS TRYING TO SAY WITH HIS HANDS THINK OF HIM TOO AT LEISURE STROLLING ALONG A BEACH WITH HIS JACKET KENNEDYLIKE OVER HIS SHOULDER THEN MOVE DOWN TO HIS FEET HE'S WEARING BLACK WINGTIP SHOES PERHAPS TO MAKE UP FOR THE FACT HE WASN'T EXACTLY ONE OF THE BOYS MR NIXON IN PRIVATE CONVERSATIONS WOULD SOMETIMES USE EXTRAORDINARY LOCKERROOM LANGUAGE SOME OF IT SHOWS UP IN THE WATERGATE TAPES BUT IT COULD APPEAR ALMOST ANY TIME ONCE WHEN FLYING IN A SMALL PRIVATE PLANE BACK TO NEW YORK AFTER A SPEECH IN THE MIDWEST HE REELED OFF TO A REPORTER THE NAMES OF POLITICIANS AND OFFICEHOLDERS DOWN BELOW SOANDSO HE WOULD SAY PEERING OUT THE WINDOW IN THE DARK IS THE COUNTY COMMISSIONER DOWN THERE HE'S AN EXPLETIVE DELETED IT WAS A DAZZLING PERFORMANCE COMBINING AN UNCANNY PHOTOGRAPHIC MEMORY WITH LANGUAGE THAT WOULD HAVE MADE A DRILL INSTRUCTOR BLINK MR NIXON MADE UP FOR HIS DEFICIENCIES BY USING HIS HEAD HE WAS PROBABLY ONE OF THE THREE OR FOUR BRIGHTEST PRESIDENTS IN AMERICAN HISTORY AND SHEER TENACITY HIS MOTHER HANNAH MR NIXON WOULD CALL HER A SAINT IN THAT FINAL MAUDLIN ADDRESS FROM THE WHITE HOUSE ALWAYS REMEMBERED THE WAY HE WHIPPED MASHED POTATOES HE NEVER LEFT ANY LUMPS SHE TOLD HIS BIOGRAPHERS HE USED THE WHIPPING MOTION TO MAKE THEM SMOOTH INSTEAD OF GOING UP AND DOWN THE WAY OTHER BOYS DID SHE ALSO SAID SHE ALWAYS CALLED HIM RICHARD HE JUST SEEMED TO BE A RICHARD SORT OF BOY HE WAS FIRST OF ALL A LAWYER AND ALMOST CERTAINLY WOULD HAVE HAD A VERY SUCCESSFUL CAREER AT THE BAR IF HE HADN'T CHOSEN POLITICS INSTEAD HE GRADUATED FROM DUKE UNIVERITY LAW SCHOOL AND SERVED AS A DESKBOUND LAWYER IN THE NAVY DURING WORLD WAR II RISING TO THE RANK OF LIEUTENANT COMMANDER HE RETURNED HOME TO CALIFORNIA AFTER THE WAR SET UP A PRACTICE NEAR WHITTIER AND PROPOSED MARRIAGE TO A YOUNG SCHOOLTEACHER NAMED THELMA RYAN FRIENDS CALLED HER PAT THE FIRST NIGHT THEY MET THE MARRIAGE PRODUCED TWO DAUGHTERS JULIE AND TRICIA MRS NIXON DIED LAST YEAR ALL OF MR NIXON'S CAMPAIGNS WERE IN ONE WAY OR ANOTHER MEMORABLE HIS FIRST IN 1946 AGAINST JERRY VOORHIS A VETERAN DEMOCRAT AND THE POPULAR INCUMBENT SET THE PATTERN IT QUICKLY GOT MEAN AND DIRTY WITH A NIXON AD PROCLAIMING THAT A VOTE FOR NIXON IS A VOTE AGAINST THE COMMUNISTDOMINATED PAC WITH ITS GIGANTIC SLUSH FUND HE WAS REFERRING TO THE CIO'S LEFTWING POLITICALACTION COMMITTEE A BRANCH OF WHICH HAD RECOMMENDED THAT THE NATIONAL PAC ENDORSE MR VOORHIS HE WON THE ELECTION AND IN HIS FRESHMAN TERM BECAME A NATIONAL SENSATION FOR HIS ROLE AS A MEMBER OF THE HOUSE UNAMERICAN ACTIVITIES COMMITTEE IN PUSHING WHITTAKER CHAMBERS'S ALLEGATIONS THAT FORMER STATE DEPARTMENT OFFICIAL ALGER HISS HAD BEEN A COMMUNIST SPY MY NAME MY CAREER MR NIXON WOULD WRITE MANY YEARS LATER WERE EVER TO BE LINKED WITH THE DECISIONS I MADE AND THE ACTIONS I TOOK IN THAT CASE INTELLECTUALS HE ARGUED NEVER FORGAVE HIM FOR HIS PURSUIT OF MR HISS BASICALLY A PRAGMATIC MAN HE BECAME IDENTIFIED WITH MASSES OF THE VOTERS NOT JUST INTELLECTUALS AS A FEROCIOUSLY PARTISAN MAN MANY OF THEM REGULAR DEMOCRATS ESPECIALLY NEVER FORGAVE HIM IT WOULD HARDLY BE AN EXAGGERATION TO SAY THAT MILLIONS OF AMERICANS OPENLY AND VISCERALLY DESPISED RICHARD NIXON HE WAS ELECTED TO THE SENATE IN 1950 DEFEATING IN ANOTHER NASTY RACE DEMOCRATIC REP HELEN GAHAGAN DOUGLAS HIS CAMPAIGN LINKED HER TO THE NOTORIOUS RADICAL VITO MARCANTONIO A NEW YORK CONGRESSMAN WITH COMMUNIST PARTY TIES IN 1952 HE BECAME DWIGHT EISENHOWER'S RUNNING MATE IN WHAT WAS BILLED AS A CRUSADE FOR POLITICAL PURITY AND QUICKLY BECAME EMBROILED IN A CONTROVERSY OVER WHAT THE PRESS CALLED A SECRET SLUSH FUND ESTABLISHED BY HIS WEALTHY SUPPORTERS TO HELP PAY HIS POLITICAL EXPENSES IN A SPEECH THE NIGHT OF SEPT 23 CARRIED BY 64 NBC TELEVISION STATIONS AND BY CBS AND MUTUAL RADIO MR NIXON HIS CAREER ON THE LINE TOOK HIS CASE TO THE NATION AND THE AGE OF TELEVISION AS THE PRIME MEDIUM FOR MASS POLITICAL COMMUNICATIONS WAS BORN HE TALKED ABOUT HIS LITTLE COCKER SPANIEL DOG NAMED CHECKERS BY HIS SIXYEAROLD DAUGHTER TRICIA NOBODY HE SAID WAS GOING TO TAKE THAT DOG AWAY FROM THE NIXON FAMILY AS FOR HIS WIFE PAT SHE DOESN'T EVEN HAVE A MINK COAT HE SAID BUT SHE DOES HAVE A RESPECTABLE REPUBLICAN CLOTH COAT AND I ALWAYS TELL HER THAT SHE'D LOOK GOOD IN ANYTHING YOU'RE MY BOY SAID MR EISENHOWER AFTER LISTENING TO THE ADDRESS ON TELEVISION MR NIXON RAN ON HIS OWN FOR PRESIDENT AGAINST JOHN F KENNEDY IN 1960 AND LOST BY ONLY 114673 VOTES HE COULD HAVE CHALLENGED THE RESULTS BUT IN A STATESMANLIKE DISPLAY HE DIDN'T HE TRIED A COMEBACK RUNNING FOR GOVERNOR OF CALIFORNIA IN 1962 AND LOST AGAIN PERHAPS HIS GREATEST CAMPAIGN HUMILIATION HIS POSTELECTION NEWS CONFERENCE WILL ALWAYS REMAIN A PART OF THE NIXON LEGEND YOU WON'T HAVE NIXON TO KICK AROUND ANY MORE HE TOLD REPORTERS BECAUSE GENTLEMEN THIS IS MY LAST PRESS CONFERENCE BUT OF COURSE IT WASN'T TENACIOUS AS EVER HE MADE A NEW LIFE FOR HIMSELF AND HIS FAMILY AS A WALL STREET LAWYER AND QUIETLY PREPARED FOR HIS COMEBACK HIS TIME FINALLY CAME IN 1968 WHEN THE NATION WAS AT WAR IN VIETNAM AND THE DEMOCRATIC PARTY WAS TORN APART OVER WHAT TO DO ABOUT IT HE DEFEATED HUBERT HUMPHREY BY 510645 VOTES AND WOULD HAVE WON EVEN BIGGER IF GEORGE WALLACE HADN'T BEEN WINNING ALMOST 10 MILLION VOTES ON HIS AMERICAN INDEPENDENT LINE IN 1972 WITHOUT MR WALLACE IN THE RACE HE CARRIED THE SOUTH ONCE A DEMOCRATIC STRONGHOLD AS HE DEFEATED GEORGE MCGOVERN BY ALMOST 18 MILLION VOTES AS PRESIDENT HE SLOWLY BEGAN TO WIND DOWN THE NATION'S MILITARY INVOLVEMENT IN VIETNAM DESPITE A SECRET BOMBING CAMPAIGN AND AN INVASION OF CAMBODIA A SETTLEMENT WORKED OUT BY MR KISSINGER WAS SIGNED EARLY IN 1973 PEACE WITH HONOR MR NIXON DECLARED SOUTH VIETNAM FELL TO COMMUNIST FORCES FROM THE NORTH IN 1975 BECAUSE HE CARRIED SO LITTLE IDEOLOGICAL BAGGAGE MR NIXON COULD SET OUT TO DO QUITE ASTONISHING THINGS NOTHING WAS MORE ASTONISHING THAN HIS TRIP TO CHINA IN 1972 WHEN AMERICA'S BESTKNOWN COLD WAR WARRIOR SAT DOWN WITH MAO TSETUNG AND CHOU ENLAI HE TRAVELED TO MOSCOW TOO TO COMPLETE STRATEGICARMS TALKS AND TO MAKE ARRANGEMENTS FOR THE SOVIET UNION TO BUY AMERICAN GRAIN DETENTE HE CALLED IT RUSSIANS MUST HAVE BEEN AS STUNNED AS ANYONE TO TURN ON THEIR TELEVISION SETS IN 1972 AND LISTEN TO A SPEECH BY THE AMERICAN PRESIDENT HE WAS JUST AS UNPREDICTABLE AT HOME IN 1971 ALONE HE FROZE WAGES AND PRICES AND CUT THE NATION'S LAST TIES TO THE GOLD STANDARD HE INTRODUCED MEASURES TO REFORM THE WELFARE SYSTEM AND HEALTH CARE AND BEGAN SHARING FEDERAL REVENUES WITH THE STATES BUT WATERGATE WHICH BEGAN WITH A LUDICROUS BREAKIN AT DEMOCRATIC HEADQUARTERS BY GOP AGENTS BROUGHT THE PRESIDENT AND THE REPUTATION HE HAD SPENT A LIFETIME BUILDING CRASHING TO THE GROUND HIS OWN TAPES RECORDINGS OF INTERNAL WHITE HOUSE DISCUSSIONS PRODUCED THE SMOKING GUN THAT ULTIMATELY FORCED HIM FROM OFFICE AWARE HE FACED IMPEACHMENT BY THE CONGRESS ABANDONED BY ALMOST ALL OF HIS FRIENDS AND COLLEAGUES HE ANNOUNCED HIS RESIGNATION ON AUG 8 1974 EFFECTIVE AT NOON THE NEXT DAY HE WAS SUCCEEDED BY HIS VICE PRESIDENT GERALD FORD WHO DECLARED THE NATION'S LONG NIGHTMARE HAD ENDED AND THEN PROCEEDED TO CREATE A POLITICAL NIGHTMARE OF HIS OWN BY PARDONING MR NIXON THE NEXT 20 YEARS OF MR NIXON'S LIFE COULD HAVE BEEN SPENT IN ANGRY DISAPPOINTED SECLUSION BUT TENACIOUS TO THE END HE CREATED A NEW AND ULTIMATELY A WELLREGARDED LIFE BY BECOMING A SCHOLAR AMERICA'S LAZARUS BECAME ONCE AGAIN A CONFIDANT OF THE GREAT AND THE MIGHTY EVEN BILL CLINTON A DEMOCRAT TURNED TO HIM FOR ADVICE THE FINAL YEARS MAY HAVE BEEN RICHARD NIXON'S GREATEST TRIUMPH 9404250103 940425 ICF KAISER POSTS LOSS FOR FISCAL 4TH PERIOD AFTER YEARAGO PROFIT FAIRFAX VA ICF KAISER INTERNATIONAL INC REPORTED A LARGE FISCAL FOURTHQUARTER LOSS THAT IT DESCRIBED AS UNACCEPTABLE DESPITE ACCELERATED ATTEMPTS TO CUT COSTS AND REORGANIZE OPERATIONS THE ENGINEERING CONSTRUCTION AND CONSULTING COMPANY ATTRIBUTED THE POORER PERFORMANCE TO SHARPLY LOWER VOLUME MAINLY ON INDUSTRIAL AND INFRASTRUCTURE PROJECTS WEATHERRELATED DELAYS AND LOSSES RELATED TO THE SALE OF A BUSINESS ICF REPORTED A LOSS OF 205 MILLION OR 112 A SHARE FOR THE QUARTER ENDED FEB 28 COMPARED WITH A YEARAGO PROFIT OF 15 MILLION OR ONE CENT A SHARE WE HAVE CUT COSTS TO MATCH EXISTING MARKET DEMAND AND WE WILL CONTINUE TO DO SO AS NEEDED ICF SAID THE COMPANY PLANS TO GO AFTER LARGER PROJECTS AND ENTER NEW MARKETS FOR ITS EXISTING SERVICES THE LATEST QUARTER INCLUDED ONETIME CHARGES OF 82 MILLION FOR ICF'S RESTRUCTURING EFFORTS AND 6 MILLION FOR EARLY RETIREMENT OF DEBT GROSS REVENUE WHICH INCLUDES SUBCONTRACTED WORK AND THE COST OF DIRECT MATERIALS ROSE 31 TO 1976 MILLION SERVICE REVENUE FOR WORK PERFORMED DIRECTLY BY THE COMPANY ROSE 84 TO 1009 MILLION FOR THE YEAR ICF REPORTED A LOSS OF 185 MILLION OR 121 A SHARE COMPARED WITH A PROFIT OF 86 MILLION OR 16 CENTS A SHARE GROSS REVENUE FELL 4 TO 6517 MILLION WHILE SERVICE REVENUE DURING THE YEAR DROPPED 23 TO 3827 MILLION ICF REPORTED ITS RESULTS AFTER THE CLOSE OF FRIDAY'S MARKETS THE COMPANY'S SHARES WERE UNCHANGED AT 2375 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9404250102 940425 DIVIDEND NEWS CRESTAR FINANCIAL CORP CRESTAR FINANCIAL CORP RICHMOND VA INCREASED ITS QUARTERLY DIVIDEND 21 TO 40 CENTS A SHARE FROM 33 CENTS PAYABLE MAY 20 TO STOCK OF RECORD MAY 2 CRESTAR IS A BANK HOLDING COMPANY WITH ASSETS OF 144 BILLION 9404250101 940425 INTERNATIONAL ON THE EVE OF SOUTH AFRICA'S ELECTIONS TURNING BULLETS INTO BALLOTS ISN'T EASY BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL NDWEDWE SOUTH AFRICA WALKING THROUGH THE MARKETPLACE OF THIS TOWN IN THE EMERALDGREEN HILLS OF NATAL SBONGILE KHUMALO IS EXPLAINING HOW TO TURN BULLETS INTO BALLOTS THIS IS THE PAPER YOU'LL SEE AT THE POLLING STATION MISS KHUMALO SAYS HANDING OUT MOCK BALLOTS TO A GROUP OF WOMEN ON THIS PAPER YOU SEE THE PICTURE OF THE PERSON YOU'LL VOTE FOR THINK ABOUT IT UNTIL THE 26TH AND ON THAT DAY MAKE SURE YOUR X IS NEXT TO THAT FACE SHE SAYS ONE WOMAN EXCITEDLY POINTS TO THE PICTURE OF CHIEF MANGOSUTHU BUTHELEZI LEADER OF THE INKATHA FREEDOM PARTY I TELL THEM THE VOTE IS SECRET BUT AS SOON AS THEY SEE BUTHELEZI'S PICTURE THEY GO MAD SAYS AN AMUSED MISS KHUMALO A VOTEREDUCATION TRAINER WITH SOUTH AFRICA'S INDEPENDENT ELECTORAL COMMISSION STANDING NEXT TO HER FELLOW TRAINER NCOKOZO ZITHA OFFERS SOME ADVICE IF THEY SAY HE'S GREAT YOU SAY YEAH HE'S THE GUY' SHE SAYS TRY TO SAVE YOUR LIFE SO IT GOES AS SOUTH AFRICA'S HISTORIC MARCH TOWARD MULTIRACIAL DEMOCRACY ENTERS ITS FINAL DAYS MR BUTHELEZI'S LASTMINUTE DECISION TO END HIS BOYCOTT OF THE ELECTIONS AND TRADE IN THE WARPATH FOR THE CAMPAIGN TRAIL HAVE RAISED HOPES THAT THIS WEEK'S ELECTIONS WILL OPEN THE WAY TO A STABLE SOUTH AFRICA IT'S A MIRACLE TO HAVE FINALLY BROUGHT INKATHA TO AN ALLINCLUSIVE SETTLEMENT SAYS CYRIL RAMAPHOSA SECRETARYGENERAL OF THE AFRICAN NATIONAL CONGRESS BUT AT THE SAME TIME INTOLERANCE AND VIOLENCE REMAIN PERVASIVE RAISING FEARS THAT THE NEW SOUTH AFRICA WON'T BE MUCH DIFFERENT FROM THE OLD OVER THE WEEKEND ACTS OF VIOLENCE MARRED YESTERDAY'S OFFICIAL END OF THE CAMPAIGN IN ULUNDI THE CAPITAL OF THE SELFGOVERNING KWAZULU HOMELAND HEADED BY MR BUTHELEZI THREE ANC SUPPORTERS WERE KILLED SATURDAY AS THEY DISTRIBUTED PAMPHLETS IN JOHANNESBURG SUNDAY A POWERFUL CAR BOMB WENT OFF OUTSIDE ANC HEADQUARTERS KILLING AT LEAST NINE PEOPLE AND INJURING ABOUT 100 AND WHITE SUPREMACISTS ARE BOYCOTTING THE ELECTIONS AND THREATENING DISRUPTION AND VIOLENCE THE AMOUNT OF INTOLERANCE THAT EXISTS ON THE PART OF CERTAIN POLITICAL ORGANIZATIONS IS BEYOND WHAT CAN BE MANAGED ANC LEADER NELSON MANDELA THE OVERWHELMING FAVORITE TO BE SOUTH AFRICA'S NEXT PRESIDENT SAID SUNDAY IN DURBAN BUT AT A LATER RALLY HE URGED SUPPORTERS TO CONCENTRATE ON THE FACT THAT WE'VE MADE ENORMOUS PROGRESS IN SPITE OF ATTEMPTS BY CRIMINALS TO DERAIL THE PROCESS THAT VOTER EDUCATION IS GOING ON AT ALL IN NDWEDWE IS ALREADY A VICTORY FOR DEMOCRACY LESS THAN TWO WEEKS AGO IN ONE OF THE MOST GRUESOME ACTS OF VIOLENCE IN STRIFETORN NATAL EIGHT MEN TRYING TO DISTRIBUTE VOTER EDUCATION PAMPHLETS IN THE NEXTDOOR HAMLET OF TAFANASI WERE HACKED TO DEATH AT THAT TIME MR BUTHELEZI WAS BOYCOTTING THE ELECTIONS AND INKATHA STRONGHOLDS LIKE NDWEDWE WERE OFFLIMITS TO ANYONE WITH OTHER IDEAS WE WERE EVEN AFRAID OF SAYING THE WORD VOTE' SAYS 52YEAROLD DLOKWENI MTOLO NOW DESPITE SATURDAY'S EVENTS IN ULUNDI VIOLENCE HAS ABATED AND CONCERN HAS TURNED TO THE LOGISTICS OF THE ELECTIONS IN THE KWAZULUNATAL REGION ONLY A WEEK AGO IT SEEMED UNLIKELY THAT FREEANDFAIR ELECTIONS COULD BE HELD IN LARGE PARTS OF THE REGION THAT'S HOME TO ABOUT 12 OF SOUTH AFRICA'S POPULATION OF 40 MILLION WE WERE GOING TO HAVE THREE MOBILE UNITS SET UP TENTS IN OPEN AREAS BECAUSE NO BUILDINGS WERE MADE AVAILABLE TO US SECURE THE AREA WITH THE MILITARY ALLOW IN ALL THOSE WHO WOULD DARE GO THROUGH TO VOTE AND THEN GET OUT BEFORE THEY TRASH US SAYS HUGH THORNYCROFT DEPUTY DISTRICT ELECTORAL OFFICER FOR THE NDWEDWE REGION MR BUTHELEZI'S DECISION TO JOIN IN HAS ALLOWED THE INSTALLATION OF 59 POLLING STATIONS IN AND AROUND NDWEDWE MIRRORING EFFORTS THROUGHOUT KWAZULUNATAL BUT THE AFTERMATH OF THE ELECTIONS REMAINS CLOUDY OVER THE WEEKEND MR BUTHELEZI QUESTIONED THE FAIRNESS OF THE ELECTIONS AND SERVED NOTICE THAT EVEN IF HE WINS ENOUGH VOTES TO GAIN CABINET POSTS IN THE POSTELECTION GOVERNMENT HE WOULD PREFER TO BE IN OPPOSITION IN UMLAZI A TOWNSHIP OUTSIDE OF DURBAN THAT HAS BEEN A FLASHPOINT OF VIOLENCE IN THE PAST THIS MIXTURE OF HOPE AND TENSION IS EVIDENT INKATHA POSTERS HAVE SUDDENLY GONE UP THROUGHOUT THE TOWNSHIP BUT AT LEAST TWO PEOPLE HAVE BEEN KILLED SINCE FRIDAY AND INTIMIDATION IS RIFE WHEN PEACE MONITOR STEPHANIE MILLER DROVE IN FRIDAY TO INSPECT A SITE WHERE A LARGE ARMS CACHE WAS UNCOVERED ON INKATHA TURF SHE WAS CHASED AWAY BY ANGRY YOUTHS WELCOME TO THE REAL WORLD OF SOUTH AFRICA SHE SAID AS SHE CLAMBERED INTO HER MINIVAN AND BEAT A HASTY RETREAT 9404250100 940425 DUPONT AGREES TO PAY 214 MILLION FOR SETTLEMENT OF FUNGICIDE LAWSUITS BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DUPONT CO AGREED TO PAY 214 MILLION TO SETTLE 220 LAWSUITS BY FARMERS AND NURSERY OPERATORS WHO CLAIMED THAT THE COMPANY'S BENLATE FUNGICIDE HURT THEIR CROPS THE BIG SETTLEMENT RESOLVES ALMOST HALF OF THE BENLATE LAWSUITS PENDING AGAINST DUPONT BECAUSE THE SETTLEMENT IS COVERED BY EXISTING RESERVES THERE WON'T BE A DIRECT IMPACT ON DUPONT'S EARNINGS STILL THE SETTLEMENT RAISES THE POSSIBILITY THAT DUPONT MAY BE FORCED TO ADD TO THE PRETAX 755 MILLION IN RESERVES IT HAS SO FAR ACCRUED TO COVER ITS BENLATE PROBLEMS SG WARBURG ANALYST PAUL RAMAN SAID THERE ARE LIKELY TO BE ADDITIONAL BENLATE CHARGES TO BE ANNOUNCED AT SOME TIME IN THE FUTURE BASED ON THE COST OF SETTLING THE 220 CASES MR RAMAN WORKED OUT A ROUGH ESTIMATE THAT THE COMPANY MIGHT HAVE TO TAKE AN ADDITIONAL 140 MILLION IN RESERVES FOR RESOLVING THE REMAINING BENLATE CASES THE WILMINGTON DEL CHEMICAL GIANT DECLINED ANY COMMENT BUT SAID THAT IT WILL CONTINUE TO EVALUATE ITS POSITION TO DETERMINE WHETHER THE REMAINING RESERVE IS ADEQUATE IT HAS NEVER DISCLOSED HOW MUCH INSURANCE COVERAGE IT HAS FOR BENLATE MATTERS BEYOND CONFIRMING THAT IT IS AT LEAST 100 MILLION A SPOKESWOMAN EMPHASIZED THAT DUPONT HAS NO PLANS OR NEGOTIATIONS UNDER WAY TO SETTLE ANY OTHER GROUPS OF CASES THE COMPANY CONTINUED TO MAINTAIN THAT IT REMAINS CONVINCED THAT BENLATE IS NOT RESPONSIBLE FOR ALLEGED CROP DAMAGE AND SAID IT SETTLED ONLY BECAUSE DOING SO WAS CHEAPER THAN LITIGATING THE CASES THE CASES THE COMPANY SETTLED FRIDAY PRIMARILY FILED BY GROWERS IN FLORIDA WERE ALL HANDLED BY THE FORT LAUDERDALE LAW FIRM OF KRUPNICK CAMPBELL MALONE ROSELLI BUSER & SLAMA A DUPONT SPOKESWOMAN SAID THE FIRM HAD THE LARGEST NUMBER OF BENLATE CASES AND THEY WERE WILLING TO PURSUE RESOLUTION ON A REASONABLE BASIS SETTLEMENT TALKS WITH KRUPNICK CAMPBELL HAD BEEN UNDER WAY FOR SEVERAL MONTHS SHE NOTED DUPONT WITHDREW THE BENLATE DF PRODUCT IN 1991 AFTER RECEIVING A SWELLING CHORUS OF COMPLAINTS THAT THE FUNGICIDE HAD STUNTED OR OTHERWISE HARMED CROPS AND ORNAMENTAL PLANTS IT PAID OUT 500 MILLION IN DAMAGES TO GROWERS BUT THEN STOPPED THE PAYMENTS AFTER CONCLUDING THAT EXTENSIVE TESTS PROVED THE PRODUCT COULDN'T HAVE CAUSED THE DAMAGE SINCE IT ADOPTED THAT STANCE ABOUT 70 GROWER LAWSUITS HAVE BEEN RESOLVED EITHER THROUGH SETTLEMENT OR TRIAL IN THE CASES THAT HAVE GONE TO TRIAL DUPONT HAS HAD A MIXED BUT FAR FROM DISASTROUS RECORD WHILE IT HAS BEEN FOUND LIABLE IN SOME CASES THE AWARDS HAVE GENERALLY BEEN SUMS THAT ARE SIGNIFICANTLY LOWER THAN WHAT THE PLAINTIFFS HAD BEEN SEEKING AND IN LINE WITH OR LOWER THAN WHAT DUPONT HAD SOUGHT TO SETTLE FOR IN ONE HIGHPROFILE FEDERAL COURT CASE IN COLUMBUS GA THE PLAINTIFFS SETTLED WHILE THE JURY WAS DELIBERATING DUPONT WON A BENCH TRIAL IN STATE COURT IN TEXAS LATE LAST YEAR AND IN FEBRUARY WON A CLEAR VICTORY IN A FLORIDA STATE JURY TRIAL IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FRIDAY DU PONT SHARES WERE DOWN 25 CENTS AT 54625 9404250099 940425 SERBS ACCEDE TO ULTIMATUM BY NATO ALLOWING UN FORCE TO ENTER GORAZDE BY WALL STREET JOURNAL REPORTERS THOMAS E RICKS AND CARLA ANNE ROBBINS IN WASHINGTON AND ROGER THUROW IN VIENNA BOSNIAN SERB FORCES GRUDGINGLY ACCEDED TO A NATO ULTIMATUM PULLING BACK THEIR HEAVY WEAPONS FROM AROUND GORAZDE AND ALLOWING UNITED NATIONS PEACEKEEPERS TO ENTER THE BATTERED MUSLIM SAFE AREA BUT IT ISN'T CLEAR WHETHER THE SERBS WILL HALT THEIR DRIVE FOR MORE TERRITORY AND RETURN TO THE NEGOTIATING TABLE OR MERELY TURN THEIR GUNS ELSEWHERE AT LEAST SOME US AND NORTH ATLANTIC TREATY ORGANIZATION OFFICIALS EXPRESSED FRUSTRATION THAT ALLIANCE BOMBERS HADN'T BEEN GIVEN THE OPPORTUNITY TO PUNISH THE SERBS THESE OFFICIALS WARNED THAT SERB AMBITIONS WON'T BE CURTAILED UNTIL THAT HAPPENS IF YOUR GOAL IS TO STOP THE SHELLING OF GORAZDE THEN YOU CAN SAY WE SUCCEEDED SAID A US OFFICIAL IF YOUR GOAL IS TO MAKE THE SERBS MORE COMPLIANT AT THE BARGAINING TABLE WELL THAT MAY BE A DIFFERENT STORY AFTER TWO WEEKS OF SERB PROMISES AND BETRAYALS US AND NATO OFFICIALS INSISTED THAT THEY WEREN'T LOWERING THEIR GUARD ALLIANCE BOMBERS WERE POISED THEY SAID TO LAUNCH LARGESCALE AIR STRIKES SHOULD THE SERBS RESUME SHELLING OR FAIL TO MEET TOMORROW NIGHT'S 8 PM EDT DEADLINE FOR A FULL DRAWBACK BEYOND A 12MILE EXCLUSION ZONE SURROUNDING THE TOWN NATO ALSO VOWED FRIDAY TO STRIKE SERB FORCES ATTACKING ANY OF THE FOUR OTHER BOSNIAN TOWNS DECLARED SAFE HAVENS BY THE UN DESPITE THE SERB PULLBACK SOME SNIPER FIRE CONTINUED YESTERDAY WOUNDING 15 AND KILLING TWO BOSNIAN GOVERNMENT RADIO REPORTED A UN FOOD CONVOY OF 14 TRUCKS ARRIVED IN GORAZDE AT LEAST 140 UKRAINIAN AND OTHER UN PEACEKEEPERS ENTERED THE TOWN AND UN HELICOPTERS EVACUATED SCORES OF PEOPLE WHO HAD BEEN WOUNDED DURING THE THREEWEEK OFFENSIVE REUTERS NEWS SERVICE REPORTED THE UN COMMANDER BRITISH LT GEN SIR MICHAEL ROSE SAID THERE WERE SOME SIGNS THAT THE SERBS ALREADY WERE PREPARING TO DRAW BACK FURTHER BEYOND THE 12MILE ZONE BUT SOME US OFFICIALS WARNED THAT THE SERBS' RETREAT MAY BE MERELY TACTICAL IN COMING DAYS ONE MILITARY PLANNER PREDICTED THE SERBS ARE LIKELY TO PROBE THE ALLIANCE'S VIGILANCE WITH LOWLEVEL CATANDMOUSE HARASSMENT NATO MILITARY PLANNERS WHO FEEL THAT THE ALLIANCE'S CREDIBILITY IS NOW ON THE LINE IN BOSNIA ARE WORRIED THAT THEIR ABILITY TO RESPOND TO SUCH HARASSMENT WILL BE THWARTED BY THE UN WHICH HAS ENGAGED IN WHAT ONE OFFICER DESCRIBED AS BLINKSMANSHIP WITH THE SERBS NATO OFFICIALS ALL THE WAY UP TO SECRETARY GENERAL MANFRED WOERNER WERE SAID TO BE INFURIATED WHEN UN SPECIAL ENVOY YASUSHI AKASHI REFUSED TO ALLOW NATO BOMBERS TO ATTACK AFTER THE SERBS CONTINUED TO SHELL THE TOWN IN DEFIANCE OF NATO'S DEMAND ON FRIDAY FOR AN IMMEDIATE CEASEFIRE THE QUESTION IS WHETHER AKASHI WILL INDEFINITELY TOLERATE LOWLEVEL SERB HARRASSMENT SAID ONE WHILE NATO IS POISED TO PROTECT THE OTHER REMAINING FOUR MUSLIM SAFE HAVENS NONE IS AS STRATEGICALLY IMPORTANT TO THE BOSNIA SERBS' VISION OF A GREATER SERBIA AS GORAZDE A LIKELY FLASHPOINT IS THE AREA AROUND SERBCONTROLLED BRCKO IN NORTHEASTERN BOSNIA WHERE A NARROW CORRIDOR CONNECTS SERBIA WITH SERBCONTROLLED AREAS OF BOSNIA AND CROATIA IN RECENT DAYS BOSNIAN SERB COMMANDERS HAVE HINTED THAT THEY MIGHT LAUNCH AN OFFENSIVE TO WIDEN AND SECURE THAT CORRIDOR AND DRIVE BACK ENCROACHING MUSLIM FORCES SOME US ANALYSTS MEANWHILE FEAR THAT THE BOSNIAN GOVERNMENT MAY BE TEMPTED TO LAUNCH ITS OWN OFFENSIVE TO CUT THE CORRIDOR AND REGAIN BRCKO A VALUABLE INDUSTRIAL TOWN WITH A CRITICAL PORT ON THE SAVA RIVER ON THE DIPLOMATIC FRONT SECRETARY OF STATE WARREN CHRISTOPHER WILL DISCUSS WAYS OF RESURRECTING BOSNIAN PEACE NEGOTIATIONS WHEN HE MEETS HIS BRITISH AND FRENCH COUNTERPARTS IN LONDON TODAY ON TUESDAY MR CHRISTOPHER WILL CONTINUE THE DISCUSSION IN GENEVA WITH RUSSIAN FOREIGN MINISTER ANDREI KOZYREV BOTH FRANCE AND RUSSIA ARE EXPECTED TO ARGUE FOR A GREAT POWERS SUMMIT TO DEVISE AND IMPOSE A SETTLEMENT ON THE WARRING PARTIES THE US INSTEAD WILL PROPOSE GIVING PARALLEL USRUSSIAN NEGOTIATING EFFORTS WHICH APPEARED TO BE MAKING HEADWAY BEFORE THE ASSAULT ON GORAZDE A LITTLE MORE TIME TO WORK AND THAT A JOINT MEETING OF BIGPOWER FOREIGN MINISTERS BE HELD IN SEVERAL WEEKS TO REVIEW THEIR PROGRESS BUT WHETHER THE GORAZDE EPISODE WILL MAKE ANY OF THE COMBATANTS MORE WILLING TO TALK PEACE ISN'T CLEAR SINCE THE NATO PINPRICK BOMBING RAIDS TWO WEEKS AGO BOSNIAN SERBS HAVE STEPPED UP THEIR RHETORIC INSISTING THAT ANY PREVIOUS OFFERS THEY MADE TO TURN BACK LAND WERE NOW OFF THE TABLE THE BOSNIAN MUSLIMS HAVE BEEN GENERALLY MUTE ON THE SUBJECT APPARENTLY HOLDING BACK TO SEE WHETHER NEGOTIATIONS OR NATO MILITARY ACTION WOULD BE THEIR BEST HOPE FOR REGAINING TERRITORY 9404250098 940425 BLACK'S FUND ACQUIRES MORE DEBT OF UNIT OF OLYMPIA & YORK NEW YORK AN INVESTMENT FUND RUN BY LEON BLACK HAS ACQUIRED ANOTHER PIECE OF DEBT OF OLYMPIA & YORK DEVELOPMENTS LTD'S US SUBSIDIARY STRENGTHENING THE FINANCIER'S POSITION IN WHAT APPEARS TO BE AN EMERGING CONTEST TO TAKE CONTROL OF THE DEVELOPER MR BLACK'S FUND APOLLO REAL ESTATE INVESTMENTS BOUGHT FROM SWEDISH BANK SVENSKA HANDELSBANKEN ITS 63 SHARE OF A 140 MILLION LOAN MADE TO THE SUBSIDIARY OLYMPIA & YORK COS USA BY A BANK GROUP LED BY JP MORGAN & CO PEOPLE FAMILIAR WITH THE SITUATION SAID THIS MONTH APOLLO BOUGHT A 31 SHARE OF THE SAME LOAN FROM BANK OF MONTREAL OFFICIALS AT APOLLO AND SVENSKA DIDN'T RESPOND TO REQUESTS FOR COMMENT THE PURCHASES THE TERMS OF WHICH WEREN'T DISCLOSED EXTEND MR BLACK'S LEAD AHEAD OF OTHER POTENTIAL INVESTORS INCLUDING DEVELOPER MORTIMER ZUCKERMAN AND KOHLBERG KRAVIS ROBERTS & CO WHO HAVE SIGNED CONFIDENTIALITY AGREEMENTS WITH O&Y USA TO CONSIDER ACQUIRING PARTS OF THE MORGAN LOAN ALTHOUGH THIS DEBT ISN'T SECURED BY A DIRECT CLAIM ON ANY OF O&Y USA'S PROPERTY IT EVENTUALLY COULD BE CONVERTED INTO AN EQUITY STAKE IN THE COMPANY THE US UNIT OF THE TORONTO COMPANY IS NEGOTIATING TO RESTRUCTURE SOME 5 BILLION OF DEBT WITHOUT A BANKRUPTCYLAW FILING THE PARENT COMPANY EMERGED FROM CANADIAN BANKRUPTCYLAW PROTECTION LAST YEAR 9404250097 940412 FIRST LADY'S TOP AIDE BRINGS NEW CLOUT TO THE EAST WING PRESIDING OVER HILLARYLAND' MAGGIE WILLIAMS FINDS POWER COMES AT A PRICE BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MARGARET WILLIAMS HAS RESUMED WRITING POETRY AGAIN A PASTIME SHE GAVE UP YEARS AGO THE ONLY THING YOU HAVE TO HOLD ON TO IS WHAT'S INSIDE YOU SHE SAYS THEY CAN RANT AND RAVE ABOUT WHAT I'VE DONE OR WHAT THEY THINK I'VE DONE AND JUST WHAT HAS SHE DONE THE 39YEAROLD CHIEF OF STAFF TO HILLARY RODHAM CLINTON BY ALL ACCOUNTS MS WILLIAMS KNOWN AS MAGGIE HAS BECOME THE MOST POWERFUL AFRICANAMERICAN WOMAN EVER TO SERVE IN THE WHITE HOUSE IN THE PROCESS SHE ALSO HAS BECOME THE MOST POWERFUL CHIEF OF STAFF THAT THE EAST WING THE FIRST LADY'S DOMAIN AT THE WHITE HOUSE HAS EVER SEEN IN STATUSCONSCIOUS WASHINGTON IT IS EXTREMELY SIGNIFICANT THAT MS WILLIAMS'S OWN OFFICE IS LOCATED IN THE WHITE HOUSE'S WEST WING BUT THERE ARE QUESTIONS ABOUT WHAT MS WILLIAMS HAS DONE REGARDING THE VEXING CONTROVERSY OVER PRESIDENT AND MRS CLINTON'S INVESTMENT IN THE WHITEWATER DEVELOPMENT CO REALESTATE VENTURE HER BOSS HAVING BEEN VIEWED AS AN INSPIRATION FOR WOMEN IS INCREASINGLY PORTRAYED IN THE PRESS AS AN UPTIGHT LAWYER WHO IS AT THE CENTER OF MANY OF THE ADMINISTRATION'S PROBLEMS MS WILLIAMS HERSELF IS ONE OF THREE PEOPLE WHO WENT INTO DEPUTY WHITE HOUSE COUNSEL VINCENT FOSTER'S OFFICE THE NIGHT HE COMMITTED SUICIDE SHE HAS BEEN THE TARGET OF CONSPIRACY THEORIES CONCERNING WHAT MIGHT HAVE HAPPENED TO MR FOSTER'S FILES ON THE CLINTONS' INVESTMENTS IN WHITEWATER WHICH LATER WERE REMOVED AND HANDED OVER TO THE CLINTONS' PERSONAL LAWYER THE THEORIES MOSTLY CENTER ON THE POSSIBILITY THAT MS WILLIAMS WENT INTO MR FOSTER'S OFFICE NOT OUT OF GRIEF AS SHE SAYS OR TO LOOK FOR A SUICIDE NOTE AS OTHER WHITE HOUSE AIDES HAVE SAID BUT TO RETRIEVE ANY DOCUMENTS THAT MIGHT HURT THE FIRST LADY THAT IS ONE OF THE ISSUES SPECIAL COUNSEL ROBERT FISKE IS INVESTIGATING HE ALSO IS PROBING WHETHER THERE WERE IMPROPER CONTACTS BETWEEN WHITE HOUSE AND TREASURY OFFICIALS OVER THE FAILED MADISON GUARANTY SAVINGS & LOAN RUN BY THE CLINTONS' WHITEWATER PARTNER MS WILLIAMS WAS PRESENT AT A FEBRUARY MEETING WITH DEPUTY TREASURY SECRETARY ROGER ALTMAN HER INVOLVEMENT IN THE CONTROVERSY HAS BEEN PAINFUL AND IRONIC FOR A WOMAN WHO CAME TO THE WHITE HOUSE AS AN IDEALISTIC NEWGENERATION DEMOCRAT HOPING TO RESTORE FAITH IN GOVERNMENT INSTEAD OF ACCOLADES FOR HER INFLUENTIAL POSITION AT THE WHITE HOUSE MS WILLIAMS RECEIVES SYMPATHY CARDS FROM FAMILY FRIENDS SOME SEND FLOWERS UNFAILINGLY LOYAL TO THE FIRST LADY MS WILLIAMS DECLINES TO TALK PUBLICLY ABOUT THE WHITEWATER CONTROVERSY OR ABOUT ANYTHING THAT HAS TO DO WITH MY WORK BUT HOWEVER WHITEWATER TURNS OUT FOR HER SHE SAYS IT IS NOTHING COMPARED WITH OTHER STRUGGLES SHE ALREADY HAS ENDURED IN HER LIFE AND CAREER YOU HAVE TO LOOK AT EVERYTHING THROUGH A PRISM OF BEING AFRICANAMERICAN IN THIS COUNTRY SHE SAYS WE ARE USED TO PEOPLE PICKING APART OUR INTEGRITY JUST BECAUSE WE ARE AFRICANAMERICAN IT'S SOMEONE FOLLOWING YOU AROUND IN A STORE BECAUSE THEY THINK YOU ARE GOING TO STEAL OR WOMEN CLUTCHING THEIR POCKETBOOKS IN THE ELEVATOR IF YOU LOOK AT IT THROUGH THAT PRISM YOUR EXPECTATIONS ARE ALREADY SO LOW THAT THIS JUST KIND OF MAKES YOU SAD THE DAUGHTER OF A SCHOOLTEACHER AND A GOVERNMENT CLERK MS WILLIAMS GREW UP IN KANSAS CITY MO THE SUDDEN DEATH OF HER FATHER SHAPED HER BELIEF THAT GOVERNMENT CAN PLAY A BIG ROLE IN INDIVIDUAL LIVES 100 MONTHLY SURVIVORS' BENEFITS FROM SOCIAL SECURITY HELPED HER MAKE IT THROUGH TRINITY COLLEGE IN WASHINGTON SHE WORKED IN A SERIES OF WASHINGTON POLITICAL JOBS BUT GREW TO DESPISE THE CAPITAL FOR WHAT SHE SAW AS ITS INSINCERITY EGOS AND CYNICISM WHILE WORKING AT THE CHILDREN'S DEFENSE FUND FROM 1985 TO 1990 SHE MET MRS CLINTON WHO WAS ON THE BOARD THEY BECAME FRIENDS AND KEPT IN TOUCH AFTER MS WILLIAMS LEFT WASHINGTON TO GO TO GRADUATE SCHOOL AT THE UNIVERSITY OF PENNSYLVANIA'S ANNENBERG SCHOOL OF COMMUNICATIONS IN 1992 MRS CLINTON PERSUADED MS WILLIAMS TO BECOME HER PERSONAL COMMUNICATIONS DIRECTOR AND AFTER THE ELECTION GIVE WASHINGTON ANOTHER TRY I HAVE NIECES AND NEPHEWS WHO I REALLY AM CONCERNED ABOUT MS WILLIAMS SAYS I THOUGHT IF WE EVER WERE GOING TO CHANGE COURSE IN THIS COUNTRY THAT THIS WAS THE BEST SHOT AT IT WITHIN THE WHITE HOUSE SHE QUICKLY DEVELOPED A REPUTATION AS SOMEONE WHO COULD LAY DOWN THE LAW LAST FALL PRESIDENT CLINTON'S TOP ADVISERS CONSIDERED ONCE AGAIN PUTTING OFF THE CRUCIAL SPEECH SETTING OUT DETAILS OF THE CLINTON HEALTHCARE REFORM PLAN THIS TIME FROM SEPTEMBER UNTIL JANUARY SO THE PRESIDENT COULD FOCUS ON PASSING A FREETRADE AGREEMENT NO MS WILLIAMS TOLD THE PRESIDENT'S CHIEF OF STAFF THOMAS MCLARTY AND COUNSELOR DAVID GERGEN WE'VE STOOD IN LINE ALREADY WE'RE NOT WAITING ANY LONGER THE HEALTHCARE SPEECH WENT AHEAD AS PLANNED IN THE PAST THE FIRST LADY'S CHIEF OF STAFF DEALT MAINLY WITH SOCIAL EVENTS AND CEREMONIAL OCCASIONS BUT WITH MRS CLINTON'S BACKING MS WILLIAMS HAS MADE IT A POSITION OF REAL CLOUT SHE MADE HER TURF CLEAR LAST SUMMER DURING CONTROVERSY OVER WHETHER HEALTHCARE MEETINGS LED BY MRS CLINTON SHOULD BE CLOSED OR OPEN TO THE PUBLIC THE WHITE HOUSE COUNSEL'S OFFICE SENT THE PRESIDENT'S AIDES A FACT SHEET ON A LAWSUIT FILED TO FORCE OPEN THE MEETINGS MS WILLIAMS CALLED THE COUNSEL'S OFFICE TO SAY POINTEDLY YOU MUST HAVE OVERLOOKED THE FACT THAT THIS INVOLVED HILLARY I NEED TO KNOW SINCE THEN MS WILLIAMS JOKES SHE IS INVITED TO SO MANY MEETINGS THAT SHE IS HOPELESSLY IN THE LOOP SHE HAS MADE SURE THE LOOP EXTENDS TO HER STAFF CONSISTING OF 12 WOMEN AND ONE MAN HOUSED IN A CORNER OF THE ORNATE OLD EXECUTIVE OFFICE BUILDING KNOWN AS HILLARYLAND HER AUTHORITY DERIVES IN PART FROM THE RECOGNITION THAT SHE IS AS CLOSE TO THE FIRST LADY AS ANYONE IN THE WHITE HOUSE NEVERTHELESS IN MANY WAYS MS WILLIAMS IS THE ANTITHESIS OF A WASHINGTON POWER BROKER SHE IS STEALTHLIKE WORKING QUIETLY IN THE BACKGROUND SHE DISLIKES DEALING WITH THE PRESS AND SELDOM GIVES INTERVIEWS BUT HER OFFICE RUNS SMOOTHLY AND IS DEVOID OF THE BACKBITING THAT ERUPTS ELSEWHERE AN ATMOSPHERE THAT HASN'T GONE UNNOTICED THE PRESIDENT HAS ASKED MR MCLARTY WHY THE FIRST LADY'S STAFF SEEMS TO OPERATE SO MUCH BETTER THAN HIS A FEW MONTHS AGO MR CLINTON AND MR MCLARTY EVEN INVITED MS WILLIAMS TO BE A DEPUTY CHIEF OF STAFF BUT SHE ELECTED TO STAY WITH MRS CLINTON YET MS WILLIAMS DOESN'T SEEM CONSUMED BY INFLUENCE AND AUTHORITY QUITE THE CONTRARY HER BEST WHITE HOUSE MOMENTS SHE SAYS HAVE BEEN TALKING POETRY WITH POET LAUREATE RITA DOVE AND PULLING OUT PICTURES OF HER INFANT NEPHEW FOR NOTED PEDIATRICIAN T BERRY BRAZELTON THE WORST MOMENTS THE ONES THAT HAVE THRUST MS WILLIAMS INTO THE UNWANTED PUBLIC SPOTLIGHT CAME THE NIGHT OF JULY 20 HER ACCOUNT TO FRIENDS IS THAT SHE HAD JUST COME HOME WHEN HER BEEPER WENT OFF AND HER TELEPHONE RANG THE MESSAGE HER COLLEAGUE AT THE WHITE HOUSE MR FOSTER HAD COMMITTED SUICIDE MS WILLIAMS LATER TOLD FRIENDS SHE FELT COMPELLED TO RUSH BACK TO THE WHITE HOUSE IN THE VAIN HOPE SHE MIGHT FIND MR FOSTER THERE STILL ALIVE A LIGHT WAS ON IN HIS OFFICE SO SHE WENT IN PATSY THOMASSON THE DIRECTOR OF ADMINISTRATION ALREADY WAS THERE WITHIN MINUTES WHITE HOUSE COUNSEL BERNARD NUSSBAUM ALSO ARRIVED THE REST OF THE STORY IS MURKY MS WILLIAMS WON'T DISCUSS WHAT HAPPENED IN MR FOSTER'S OFFICE BUT AIDES HAVE SAID SHE SAT ON THE SOFA AND CRIED SEVEN MONTHS LATER MR FISKE'S PROBE INTO MR FOSTER'S DEATH WHAT HAPPENED TO HIS FILES AND WHETHER WHITE HOUSE AIDES MIGHT HAVE OBSTRUCTED THE WHITEWATER INVESTIGATION BROUGHT HER TO THE LOBBY OF THE FEDERAL DISTRICT COURTHOUSE ACCOMPANIED BY A CRIMINAL LAWYER AFTER MONTHS OF BATTLING THE BARRAGE OF STORIES AND SPECULATION SHE SAYS SHE WELCOMED THE OPPORTUNITY TO TESTIFY TO A GRAND JURY HERE WAS SOMETHING THAT WAS SET UP TO WORK I REALLY DID FEEL LIKE THE QUESTIONS WERE FAIR AND THEY WERE INTERESTED IN A REAL ACCOUNT TO ME IT WAS A LEGITIMATE USE OF MY TIME A LEGITIMATE PROCESS THAT HAD BEEN SET UP SHE SAYS BUOYED BY THE EXPERIENCE MS WILLIAMS WALKED OUT AND CONFRONTED THE WAITING REPORTERS WITH A SHORT FIERY STATEMENT I'M REALLY ENCOURAGED TO BE PART OF SOMETHING WHERE FINDINGS OF FACT ARE ACTUALLY IMPORTANT AS OPPOSED TO INNUENDO AND RUMORMONGERING AND GOSSIP AND SENSATIONALISM AT THE WHITE HOUSE HER STAFF CHEERED SEE RELATED LETTER LETTERS TO THE EDITOR HAIL TO THE FIRST LADY'S BUSY CHIEF OF STAFF WSJ APRIL 25 1994 9404120044 YY94 MM04 9404250096 940425 PEPPERAND SALT WHICH ONE IS WHICH CAN YOU COULD POSSIBLY HAVE REJECTED 9404250095 940425 GLOBAL VIEW GORAZDE'S LESSONS ABOUT FOREIGN POLICY DRIFT BY GEORGE MELLOAN BOSNIA'S SERBS HAVE LITERALLY GOTTEN AWAY WITH MURDER AGAIN YASUSHI AKASHI OF THE UNITED NATIONS YESTERDAY SHIELDED THEM FOR THE MOMENT FROM THREATENED NATO AIR STRIKES BY SAYING THAT THEY HAD COMPLIED SUFFICIENTLY WITH FRIDAY'S UN ULTIMATUM THE FACT THAT THEY HAD SLAUGHTERED 715 PEOPLE AND WOUNDED NEARLY 2000 IN THEIR THREEWEEK ASSAULT ON THE UN'S GORAZDE SAFE HAVEN WAS BRUSHED ASIDE MR AKASHI SAID UN PEACEKEEPERS NOW SEPARATE THE SERBS AND MUSLIMS IN GORAZDE THEREBY ESTABLISHING A NEW CEASEFIRE THE UN'S MAN IN BOSNIA COULD HARDLY HAVE CHOSEN WORSE TIMING FOR HIS BACKDOWN THE SERBS THROUGH THEIR OWN BEASTLINESS FINALLY HAD SHED THE FEW FRIENDS THEY STILL HAD BEFORE A WORLD THAT WAS APPALLED AT THEIR CALLOUSNESS THEY HAD TREATED THE UN'S SAFE HAVEN DECLARATION WITH TOTAL CONTEMPT THEY BOMBARDED THE CITY RUTHLESSLY BLASTING ITS HOSPITAL AND UN AND RED CROSS HEADQUARTER BUILDINGS HUMANITARIAN RELIEF TO THE STRICKEN TOWN WAS CUT OFF BY THE SERBS EVEN THE RUSSIANS TURNED AGAINST THEM FINALLY BACKING THE UN ULTIMATUM THAT LEFT NO GOOD POLITICAL REASON NOT TO UNLEASH NATO AIRCRAFT ON BOSNIAN SERB TARGETS THE RUSSIANS HAD COMPLAINED BITTERLY ABOUT NOT BEING NOTIFIED IN ADVANCE ABOUT THE LIGHT TAP NATO GAVE THE SERBS TWO WEEKS AGO BUT THEY SWITCHED THEIR POSITION AFTER CONCLUDING THAT THE SERBS HAD BETRAYED THEM WITH PROMISES THEY FAILED TO KEEP TO RESPECT THE GORAZDE SAFE HAVEN THERE WAS LITTLE TECHNICAL REASON FOR CALLING OFF NATO EITHER BY LOCAL ACCOUNTS OF SMALL ARMS AND MORTAR FIRE THE SERBS DID NOT FULLY COMPLY WITH YESTERDAY'S 201 AM LOCAL DEADLINE FOR WITHDRAWING TO A PERIMETER 19 MILES FROM THE CENTER OF GORAZDE EVEN GREECE'S LEFTWING PREMIER ANDREAS PAPANDREOU STOOD ASIDE AFTER HIS LOVEFEST WITH PRESIDENT CLINTON LAST WEEK HE NEITHER SUPPORTED NOR OPPOSED NATO ACTION AGAINST THE SERBS GREECE HAD PREVIOUSLY BACKED THEM IN WESTERN COUNCILS BY NOT TAKING ADVANTAGE OF THIS FAVORABLE ALIGNMENT OF THE POLITICAL PLANETS THE UN MISSED ONE OF THE BEST OPPORTUNITIES IT WILL EVER HAVE TO SHOW THAT IT IS CAPABLE OF DECISIVE ACTION UN PEACEKEEPING TRIPS OFF THE TONGUES OF NATIONAL LEADERS AS A TERM OF CONVENIENCE BUT IT HAS BECOME A GRIM OXYMORON WHILE THE SERBS WERE DEFYING THE UN AT GORAZDE ITS PEACEKEEPERS IN RWANDA WERE FLEEING AN EVEN WORSE BLOODBATH THE BRAVERY OF THE UN MISSIONERS IS BEYOND QUESTION BUT THE CONCEPT THAT WARRING FACTIONS WILL DROP THEIR WEAPONS AT THE SIGHT OF THAT BLUE AND WHITE BANNER OF PEACE IS NOW WIDELY RECOGNIZED AS DEEPLY FLAWED IT BECOMES LESS CREDIBLE EACH TIME UN OFFICIALS MISJUDGE THE CIRCUMSTANCES IN WHICH THEY MIGHT BE JUSTIFIED IN USING MILITARY FORCE OR WHEN THEY OVERRIDE SOUND MILITARY JUDGMENTS IN SUCH AN ATTEMPT AS IN SOMALIA PRESIDENT CLINTON THE MAN WHO ON FRIDAY WAS GETTING CREDIT FOR FASHIONING THE ULTIMATUM SEEMED NOWHERE TO BE FOUND WHEN THE MOMENT CAME FOR CARRYING IT OUT SATURDAY NIGHT WASHINGTON TIME HAVING DUMPED THIS MOMENTOUS DECISION ON THE LIKES OF MR AKASHI AND BOUTROS BOUTROSGHALI HE SIMPLY LET IT LIE MANFRED WOERNER SECRETARY GENERAL OF NATO AND THE MAN RESPONSIBLE FOR CARRYING OUT THE THREAT WAS REDUCED TO ARGUING THE CASE WITH MR AKASHI ONLY TO BE OVERRIDDEN BY THE UN MAN'S DOUBTFUL JUDGEMENT ASIDE FROM THE IMMEDIATE CIRCUMSTANCES SURROUNDING THIS LATEST UNCENTERED CAVEIN THERE ARE BROADER QUESTIONS RELATING TO GORAZDE THERE IS THAT OLD NAGGING PROBLEM HAVING TO DO WITH WHAT SOME NATIONAL LEADERS LIKE TO TERM SMALL WARS SUCH WARS TEND TO BECOME FOCAL POINTS FOR BROADER AND FAR MORE DANGEROUS DISPUTES WORRIES AT THE OUTSET OF THE YUGOSLAV WAR THAT IT MIGHT SPREAD TO NEIGHBORING REGIONS WERE ONLY A LIMITED ASSESSMENT OF THE DANGER A POTENTIALLY MORE SERIOUS CONSEQUENCE WAS THAT MAJOR POWERS WOULD BECOME EMOTIONALLY AND POLITICALLY INVOLVED UNDER POPULAR PRESSURES AT HOME THE DANGER HAS GROWN AS GLOBAL COMMUNICATIONS SYSTEMS DELIVER WAR SCENES EVERYWHERE RAISING POLITICAL PASSIONS ON BEHALF OF ONE OR ANOTHER COMBATANT US DIPLOMATS HAVE LABORED MIGHTILY SINCE THE FALL OF THE SOVIET UNION TO WOO RUSSIA INTO A HARMONIOUS RELATIONSHIP WITH THE WEST BUT MANY RUSSIANS LIKE THE GREEKS IDENTIFY THEMSELVES WITH SERBIA AS THE WEST BEGAN TO INCREASINGLY AND CORRECTLY DESCRIBE THE SERBS AS THE AGGRESSORS IN BOSNIA RUSSIAN PASSIONS AT THE GRASS ROOTS WERE STIRRED AGAINST THE WEST BORIS YELTSIN'S JOB OF RECONSTRUCTION WOULD BE EASIER WITHOUT THIS DISTRACTION BUT NO POLITICIAN CAN IGNORE SUCH OUTCRIES HAD IT NOT BEEN FOR THE SERBIAN BETRAYAL OF RUSSIA THE USRUSSIAN DIVISION OVER BOSNIA COULD HAVE BECOME MORE SERIOUS IT MAY NOT BE HEALED YET THERE IS ALSO THE INTERESTING QUESTION OF GERMANY GERMANY NOW IS ONCE AGAIN A WHOLE NATION INCREASINGLY NEEDING TO MOLD A FOREIGN POLICY OF ITS OWN IT SITS ON THE EASTERN EDGE OF WHAT ONCE WAS KNOWN AS WESTERN EUROPE AND INCREASINGLY DIRECTS ITS THOUGHT TO THE SLAVIC COUNTRIES TO ITS EAST AND SOUTHEAST INCLUDING RUSSIA HELMUT KOHL IN HIS DESIRE TO DAMP DOWN THE TENSIONS IN THESE LANDS CANNOT IGNORE SERBIAN AGGRESSION EITHER EUROPE IS A PLACE OF LONG AND OFTEN BITTER MEMORIES THE ALLIES WILL CELEBRATE THE 50TH ANNIVERSARY OF THE DDAY LANDING ON JUNE 6 THEY MOST LIKELY WILL NOT CELEBRATE ANOTHER ANNIVERSARY LATER IN THE MONTH JUNE 28 IS THE 80TH ANNIVERSARY OF THE 1914 ASSASSINATION OF ARCHDUKE FRANCIS FERDINAND HEIR PRESUMPTIVE TO THE AUSTRIAN THRONE IN SARAJEVO BY A SERBIAN NATIONALIST THIS TOUCHED OFF A FATEFUL CHAIN REACTION THAT ULTIMATELY BECAME WORLD WAR I ARGUABLY THE MOST AWFUL WAR IN ITS UTTER MINDLESSNESS AND SLAUGHTER THAT HAS EVER BEEN FOUGHT BY SOME LIGHTS WORLD WAR II WAS A SEQUEL ALL THAT FROM A VERY SMALL BEGINNING THE WORLD WOULD LIKE TO THINK THAT IT IS WELL BEYOND THAT SORT OF THING TODAY THE COLD WAR WITH ITS TWO CAMPS CONSTRAINED BY A BALANCE OF NUCLEAR TERROR CONTRIBUTED TO THAT SENSE OF ANXIOUS STABILITY BUT A CASE COULD BE MADE THAT TODAY'S WORLD AND PARTICULARLY TODAY'S EUROPE BEARS A CLOSER RELATIONSHIP TO THE PRE1914 ERA THAN ANYTHING WE HAVE SEEN SINCE THERE STILL IS SOME BELIEF THAT THE UNITED NATIONS IS CAPABLE OF MAINTAINING WORLD ORDER IT MAY BE CAPABLE OF DOING SO BUT IT ISN'T MANAGING IT VERY WELL AN AMERICAN PRESIDENT SEEMS CONTENT TO TURN OVER MOST OF HIS TOUGH FOREIGN POLICY ISSUES TO THAT BODY THE EXPERIENCE IN GORAZDE SUGGESTS THAT THE MOST LIKELY RESULT OF SUCH AN APPROACH IS TEMPORIZING CONTINUED DISORDER AND A CONTINUATION OF THOSE TERRIBLE SCENES ON TV IT LOOKS DANGEROUS AND PROBABLY IS 9404250094 940425 TECHNOLOGY AND ENVIRONMENT NORTHERN TELECOM SIGNS SWEEPING PACT FOR CHINESE TELECOMMUNICATIONS PUSH BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NORTHERN TELECOM LTD SIGNED A SWEEPING ACCORD WITH CHINESE GOVERNMENT OFFICIALS TO SET UP RESEARCH AND DEVELOPMENT MANUFACTURING AND OTHER OPERATIONS IN CHINA THE AGREEMENT WHICH WAS EXPECTED CALLS FOR THE CANADIAN TELECOMMUNICATIONS SUPPLIER TO INVEST AS MUCH AS 150 MILLION IN CHINA IN JOINT VENTURES IN SWITCH AND TRANSMISSION EQUIPMENT MANUFACTURING FACILITIES AN R&D OPERATION AND AN EXTENSIVE SALES AND SERVICE ORGANIZATION CHINESE PARTNERS WILL KICK IN UP TO 300 MILLION IN THE VARIOUS VENTURES WITH A NETWORK UPGRADE THAT COULD TOTAL 90 BILLION OVER THE NEXT SEVEN YEARS CHINA HAS BECOME THE BIGGEST BATTLEGROUND FOR GLOBAL TELECOMMUNICATIONS SUPPLIERS THE MARKET IS DOMINATED BY FRANCE'S ALCATELALSTHOM OTHER COMBATANTS INCLUDE NORTHERN AT&T CORP SWEDEN'S LM ERICSSON GERMANY'S SIEMENS AG AND VARIOUS JAPANESE SUPPLIERS BUT THE HOTTEST RIVALRY IS BETWEEN NORTHERN AND AT&T ALREADY OPPONENTS IN THE US MARKET THE TWO FOUGHT TO BE THE FIRST TO SIGN A MEMORANDUM OF UNDERSTANDING WITH BEIJING WHILE AT&T WON THAT RACE IN EARLY 1993 NORTHERN HAS NOW BEATEN ITS AMERICAN FOE IN THE SUBSEQUENT SCRAMBLE TO TURN ITS MEMORANDUM OF UNDERSTANDING INTO A LARGER BUSINESS ENTERPRISE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING NORTHERN CLOSED AT 27375 UP 25 CENTS AT&T EASED 875 CENTS TO 52375 CONCURRENT WITH FRIDAY'S AGREEMENT CANADA APPROVED A 200 MILLION GOVERNMENT LOAN WHICH COULD HELP FINANCE MORE THAN ONE MILLION LINES OF SWITCHING AND TRANSMISSION GEAR FOR THE CHINESE PROVINCE OF GUANGDONG WHILE THE CHINESE GOVERNMENT MUST STILL APPROVE THE DEAL NORTHERN CHAIRMAN JEAN MONTY SAID HE IS CONFIDENT THE FORMAL AGREEMENT WILL BE SIGNED BY THE END OF JUNE WE'RE PLEASED TO BE THE FIRST NORTH AMERICAN MANUFACTURER TO HAVE ATTAINED SUCH A HIGH LEVEL OF PENETRATION IN CHINA MR MONTY SAID IN AN INTERVIEW COUNTERED A SPOKESWOMAN FOR AT&T NETWORK SYSTEMS GROUP LIKE EVERY SUPPLIER WE ARE INVESTING IN CHINA AND WILL CONTINUE TO DO SO NORTHERN WHICH IS STILL STRUGGLING TO REVERSE A SLOWDOWN IN US ORDERS DUE TO SOFTWARE PROBLEMS IS ALREADY BUILDING OFFICE PHONE SWITCHES IN CHINA AND IT HAS SUPPLIED DATA GEAR FOR THE NATIONAL CHINESE DATA NETWORK THE NEW PACT COVERS NUMEROUS JOINT VENTURES RANGING FROM PRODUCTION OF NORTHERN'S DMS SWITCHING EQUIPMENT TO VERYLARGESCALE INTEGRATED VLSI CIRCUITS IN GUANGDONG AND SHANGHAI RESPECTIVELY CHINESE INVESTORS WILL CONTROL 60 OF THE THE SWITCHING JOINT VENTURE WITH NORTHERN HOLDING A 40 INTEREST MR MONTY SAID NORTHERN WILL CONTROL ANY RESEARCH FACILITIES ESTABLISHED BY ITS BELL NORTHERN RESEARCH UNIT BUT DON'T COUNT AT&T OUT WHILE AT&T HAS MADE SIGNIFICANT INROADS IN CHINA ITS EFFORTS TO ESTABLISH A FIRMER FOOTING HAVE BEEN STYMIED BY WASHINGTON'S TRADE RIFT WITH CHINA OVER HUMAN RIGHTS THE CHINESE DELEGATION IS DUE TO VISIT WITH AT&T OFFICIALS THIS WEEK IN BASKING RIDGE NJ AT THE SIGNING IN TORONTO FRIDAY WERE ROY MACLAREN CANADA'S MINISTER OF TRADE AND A CHINESE DELEGATION LED BY VICE PREMIER ZOU JIAHUA ON SATURDAY NORTHERN WAS SCHEDULED TO TAKE THE PARTY TO NIAGARA FALLS 9404250093 940425 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ABC BANCORP A PROPOSED OFFERING OF 600000 COMMON SHARES AT AN ANTICIPATED 11 TO 13 EACH AMERICAN FREIGHTWAYS CORP AN OFFERING OF ABOUT 25 MILLION COMMON SHARES VIA STEPHENS INC APOGEE INC AN INITIAL OFFERING OF 35 MILLION COMMON SHARES AT AN EXPECTED 15 TO 17 A SHARE WITH AN OVERALLOTMENT OPTION FOR 525000 ADDITIONAL SHARES VIA SMITH BARNEY SHEARSON INC AND JP MORGAN SECURITIES INC E'TOWN CORP AN OFFERING OF 600000 COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 90000 ADDITIONAL SHARES VIA KIDDER PEABODY & CO AND AG EDWARDS & SONS INC KOREAN INVESTMENT FUND INC AN OFFERING OF UP TO 1403038 COMMON SHARES IN A NONTRANSFERABLE RIGHTS OFFERING VIA PAINEWEBBER INC 9404250092 940425 FORD TO ANNOUNCE BOOST IN PRODUCTION OF ITS NEW MUSTANG DETROIT FORD MOTOR CO IS EXPECTED TO ANNOUNCE TODAY THAT IT IS BOOSTING PRODUCTION OF ITS REDESIGNED MUSTANG SPORTS CAR BY 12 ADDING 75 NEWLY HIRED WORKERS AT ITS ASSEMBLY PLANT IN DEARBORN MICH RUNNING AT 38 CARS AN HOUR THE FACTORY HAS BEEN CRANKING OUT 760 MUSTANGS A DAY ON TWO 10HOUR SHIFTS PLUS FREQUENT SATURDAYS FORD IS INCREASING THE LINE SPEED TO 425 CARS AN HOUR WHICH WILL ADD 90 CARS A DAY TO PRODUCTION THE ASSEMBLY PLANT CURRENTLY EMPLOYS 1875 WORKERS THE LINESPEED INCREASE WHICH IS TO GO INTO EFFECT TODAY WILL INCREASE FORD'S PROJECTED OUTPUT OF MUSTANGS DURING THE 1994 CALENDAR YEAR TO ABOUT 200000 UP FROM THE PREVIOUSLY PLANNED 185000 WHEN THE REDESIGNED MODEL WAS LAUNCHED LAST FALL FORD WAS INITIALLY PLANNING TO BUILD ABOUT 132000 THIS YEAR MUSTANG SALES IN THE FIRST QUARTER MORE THAN DOUBLED FROM A YEAR EARLIER TO 44664 VEHICLES SEPARATELY FORD SAID THAT ALL OF ITS ASSEMBLY PLANTS WORKED OVERTIME LAST WEEK EXCEPT ITS FACTORIES IN WIXOM MICH ATLANTA AND CHICAGO MEANWHILE GENERAL MOTORS CORP AND CHRYSLER CORP SAID A TOTAL OF 23 CAR AND TRUCK ASSEMBLY PLANTS WERE TO OPERATE DAILY AND WEEKEND OVERTIME LAST WEEK AS WELL AS DAILY OVERTIME THIS WEEK ALTOGETHER THE US AUTO MAKERS SAID THEY PLANNED TO BUILD 246653 CARS AND TRUCKS LAST WEEK UP 302 FROM THE 189405 VEHICLES BUILT IN THE SAME WEEK LAST YEAR 9404250091 940425 SOUTH KOREAN GROUP SEEKS A HIGHER CEILING FOR FOREIGN WORKERS SPECIAL TO THE WALL STREET JOURNAL SEOUL SOUTH KOREA A MAJOR ASSOCIATION OF FOREIGN TRADERS DEMANDED THAT SOUTH KOREA ALLOW MORE FOREIGNERS TO COME HERE TO BATTLE THE CHRONIC SHORTAGE OF MANUAL WORKERS CURRENTLY 20000 WORKERS MOSTLY FROM LESS DEVELOPED ASIAN NATIONS INCLUDING CHINA THE PHILIPPINES BANGLADESH AND NEPAL ARE GIVEN WORK PERMITS THE KOREA FOREIGN TRADE ASSOCIATION OFFICIALS DIDN'T SAY BY HOW MUCH THEY WOULD LIKE TO RAISE THE CEILING ABOUT 50000 ADDITIONAL WORKERS ARE HERE ILLEGALLY LURED BY WAGES FOUR TO 10 TIMES HIGHER THAN WHAT THEY CAN EARN AT HOME WITH SUDDEN INDUSTRIAL DEVELOPMENT AND AFFLUENCE INCREASING NUMBERS OF SOUTH KOREANS HAVE SHUNNED MANUAL LABOR CAUSING THE LABOR SHORTAGE BUT WITH THE RISING NUMBER OF FOREIGN WORKERS SOUTH KOREANS ARE BLAMING FOREIGNERS FOR INCREASING CRIME AND CAUSING UNEMPLOYMENT REPORTS OF ABUSE OF THE ILLEGAL WORKERS HAVE ALSO INCREASED MANY OF THE WORKERS HAVE COMPLAINED OF LONG HOURS AND CRAMPED AND DANGEROUS CONDITIONS AT FACTORIES IN RESPONSE SOUTH KOREA LAST YEAR DOUBLED THE CEILING OF FOREIGN MANUAL LABORERS ALLOWED TO WORK LEGALLY THE LABOR MINISTRY ALSO ANNOUNCED THAT ILLEGAL WORKERS WOULD BE ELIGIBLE FOR THE SAME AMOUNT OF COMPENSATION AS SOUTH KOREANS FOR WORKRELATED INJURIES 9404250090 940425 PORSCHE AG PROPOSES CREATING FAMILY CARS FOR CHINESE MARKET SPECIAL TO THE WALL STREET JOURNAL BEIJING GERMAN AUTO MAKER PORSCHE AG HAS PROPOSED DEVELOPING FAMILY CARS FOR THE CHINESE MARKET USING LOCAL MANUFACTURERS THE OFFICIAL CHINA DAILY NEWSPAPER REPORTED GERHARD FRANK DIRECTOR OF PORSCHE'S ENGINEERING SERVICES SAID IN THE REPORT THAT THE PLAN WAS IN LINE WITH CHINA'S GOAL TO BUILD CARS FOR THE COUNTRY'S MORE THAN 300 MILLION MIDDLEINCOME FAMILIES ACCORDING TO THE PROPOSAL THE CARS WOULD BE MANUFACTURED IN COOPERATION WITH CHINESE AUTO MAKERS PORSCHE ALSO PLANS TO ESTABLISH A RESEARCHANDDEVELOPMENT CENTER IN CHINA THE REPORT SAID WHICH WOULD DESIGN ENGINES AND TRANSMISSION SYSTEMS FOR THE CHINESE MARKET MR FRANK AND VOLKER GEMPT ASIA MANAGER FOR THE STUTTGARTBASED COMPANY WERE TRAVELING WITH PORSCHE'S PRESIDENT WENDELIN WIEDEKING ON A VISIT TO CHINA THE NEWSPAPER DIDN'T REPORT ON THE CHINESE RESPONSE TO THE PROPOSALS CHINA HAS SAID IN RECENT WEEKS THAT IT IS BANNING ANY MORE FOREIGN AUTOASSEMBLY LINES IN AN EFFORT TO DEVELOP ITS DOMESTIC INDUSTRY THE COUNTRY NOW PRODUCES ABOUT ONE MILLION SEDANS ANNUALLY BUT PLANS TO BOOST THE NUMBER TO TWO MILLION OVER THE NEXT DECADE 9404250089 940425 WHO'S NEWS CONSOLIDATED STORES CORP CONSOLIDATED STORES CORP COLUMBUS OHIO MICHAEL J POTTER 32 YEARS OLD CURRENTLY VICE PRESIDENT AND CONTROLLER WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT THIS CONCERN THAT OPERATES A CHAIN OF SPECIALTY CLOSEOUT RETAIL STORES HE SUCCEEDS WILLIAM B SNOW 62 WHO IS RETIRING IN JUNE MR SNOW WHO HAS BEEN WITH CONSOLIDATED SINCE 1985 HELD THE TITLE OF EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR POTTER WILL BE SUCCEEDED BY MARK D SHAPIRO 34 WHO IS CURRENTLY ASSISTANT CONTROLLER THE APPOINTMENTS BECOME EFFECTIVE IN JUNE 9404250088 940425 ECONOMY ONE SET OF ECONOMIC FACTS TWO VIEWS FORECASTS OF GROWTH AND INFLATION VARY BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WILL RISING INTEREST RATES CHOKE OFF THE NATION'S ECONOMIC EXPANSION JUST WHEN IT'S REALLY GETTING GOING THE FICKLE FINANCIAL MARKETS CAN'T SEEM TO DECIDE AT ONE POINT LAST WEEK STOCK PRICES OF INDUSTRIAL COMPANIES PLUNGED WHEN TRADERS DECIDED AN INTERESTRATEDRIVEN ECONOMIC SLOWDOWN WAS ON THE HORIZON NEXT DAY HOWEVER SENTIMENT AND STOCK PRICES SWUNG HEARTILY THE OTHER WAY ECONOMISTS TOO ARE AT ODDS IN FACT EXPECTATIONS FOR GROWTH THIS YEAR ARE IN MANY CASES STILL WIDELY DIVERGENT TO UNDERSTAND SOME OF THE ARGUMENTS SEPARATING THOSE VIEWS CONSIDER THE FORECASTS OF IRWIN KELLNER CHIEF ECONOMIST OF CHEMICAL BANKING CORP WHO SEES GROSS DOMESTIC PRODUCT UP 31 THIS YEAR AND WILLIAM BROWN HEAD ECONOMIST AT JP MORGAN CO WHO FORECASTS A STRONGER 45 EXPANSION THEY HAVE STUDIED THE INDICATORS AND REACHED DIFFERENT CONCLUSIONS ABOUT WHERE THE ECONOMY IS HEADED MR KELLNER 55 YEARS OLD AND A BANK ECONOMIST SINCE 1970 SEES THE ECONOMY SLOWING DOWN PRESSURED BY THOSE HIGHER INTEREST RATES AND THE IMPACT OF HIGHER TAXES I'VE BEEN PRETTY ACCURATE ON CALLING THE MAJOR TURNS IN THE ECONOMY HE SAYS THAT INCLUDES CORRECTLY PREDICTING THE START OF THE RECESSION IN AUGUST 1990 AND ITS END IN APRIL 1991 THOUGH HE UNDERESTIMATED GROWTH IN THE SECOND HALF OF LAST YEAR MR KELLNER SAYS OTHER ECONOMISTS FAIL TO RECOGNIZE THAT CONSUMER SPENDING WHICH ACCOUNTS FOR THE BULK OF ECONOMIC ACTIVITY IS ALREADY SLOWING THESE ARE FACTS NOT A FORECAST HE INSISTS POINTING TO THE MEAGER 07 INFLATIONADJUSTED GROWTH IN RETAIL SALES IN THE FIRST QUARTER COMPARED WITH A 123 GAIN IN THE FOURTH QUARTER OF LAST YEAR HIS FORECAST OF 31 GROWTH THIS YEAR IS WELL BELOW THE 37 CONSENSUS OF 51 ECONOMISTS SURVEYED EARLIER THIS MONTH BY BLUE CHIP ECONOMIC INDICATORS A SEDONA ARIZ NEWSLETTER HIS ESTIMATE IS ALSO ROUGHLY FLAT WITH LAST YEAR'S GDP GROWTH RATE WHICH CAME IN AT 3 THE FIRST QUARTER GDP FIGURE WHICH MR KELLNER ESTIMATES AT AN ANNUALIZED 28 RATE WILL BE RELEASED THURSDAY MR KELLNER HAS BEEN WARNING SINCE LAST AUGUST THAT THE NATION'S NEW HIGHER TAX RATE FOR WEALTHY INDIVIDUALS WILL HAVE A RIPPLE EFFECT IN THE ECONOMY HELPING TO FURTHER CURTAIL SPENDING OTHER FACTORS HE BELIEVES WILL ALSO CONTRIBUTE TO MORE MUTED CONSUMER CONFIDENCE AND SPENDING NOTABLY THE RECENT INCREASE IN INTEREST RATES THE DECLINE IN THE STOCK MARKET OVER THE LAST FEW MONTHS AND EVEN THE INQUIRIES INTO PRESIDENT CLINTON'S PAST FINANCIAL DEALINGS INFLATION HE BELIEVES WILL STAY LOW AT AROUND 25 THIS YEAR IN PART BECAUSE LABOR COSTS WON'T BE RISING MUCH THERE'S STILL A SURPLUS OF WORKERS BY HIS COUNT WHAT'S MORE INDUSTRIAL RAW MATERIAL PRICES ARE STILL BELOW LEVELS OF THREE YEARS AGO WHICH SUGGESTS TO HIM THAT PRICING PRESSURE WON'T CONTRIBUTE TO INFLATION AND THOUGH PLANT CAPACITY HAS GROWN INCREASINGLY TIGHT A SIGN THAT SHORTAGES COULD SPUR INFLATION HE NOTES THAT IMPORTS ARE SIMULTANEOUSLY UP SUGGESTING THAT BUSINESSES ARE TAPPING INTO EXCESS WORLD CAPACITY TO KEEP COSTS AND PRICES DOWN WITH INFLATION IN CHECK MR KELLNER SEES LONGTERM TREASURY BOND RATES LATER THIS YEAR FALLING BACK TO ABOUT 7 FROM THE CURRENT RATE OF ABOUT 72 AND WELL BELOW THE MORE THAN 74 SEEN EARLY LAST WEEK HE SAYS HIS INTERVIEWS WITH BUSINESS EXECUTIVES WHO SAY THEY STILL FEEL ENORMOUS COMPETITIVE PRESSURE TEND TO CONFIRM HIS VIEW THAT GROWTH WILL REMAIN MODERATE IN FACT THEY WANT TO KNOW WHY I AM SO OPTIMISTIC ABOUT THE ECONOMY IN CONTRAST JP MORGAN'S MR BROWN 44 BEGAN INCREASING HIS FORECASTS OF ECONOMIC GROWTH LAST SPRING WHEN HE SAW BUSINESS AND PROFIT IMPROVING FOR THE BANKING SECTOR AND WHEN DEBT DATA ON BUSINESSES AND CONSUMERS SHOWED BOTH GROUPS IN A HEALTHY POSITION TO BORROW AND SPEND MORE HE CORRECTLY FORECAST THAT GROWTH IN THE SECOND HALF OF 1993 WOULD BE ROBUST AND THAT MUCH OF THAT MOMENTUM WOULD CARRY INTO 1994 IF ANYTHING I AM HOLDING MYSELF BACK FROM SAYING GROWTH WILL BE 5 THIS YEAR HE SAYS HE EXPECTS THURSDAY'S FIRSTQUARTER GDP FIGURE TO BE AN ANNUALIZED RATE OF 3 ANY SLOWDOWN IN CONSUMER SPENDING THIS YEAR WILL BE MORE THAN OFFSET BY CONTINUED STRONG CAPITAL INVESTMENT BY BUSINESSES CONTENDS MR BROWN WHO JOINED JP MORGAN IN 1972 IT'S A POWERFUL ADDITIVE THAT WILL BOOST GDP BY 2 THIS YEAR HE SAYS HE BELIEVES BUSINESSES ARE IN THE MIDST OF A LONGTERM CAPITAL SPENDING BINGE NOT JUST A SHORTTERM BURST LOW INTEREST RATES DURING THE LAST TWO YEARS HELPED FUEL THAT SURGE IN SPENDING AND THE SPENDING TREND WON'T BE TURNED AROUND OVERNIGHT SAYS MR BROWN THE NEARTERM EFFECT OF HIGHER INTEREST RATES ON BUSINESS AND CONSUMER SPENDING HAS BEEN GREATLY OVERSTATED BY ECONOMISTS HE BELIEVES BUT MR BROWN DOES SEE SLIGHTLY MORE OMINOUS SIGNS OF INFLATION THAN MR KELLNER HE BELIEVES LABOR COSTS WON'T REMAIN CONTAINED THAT AT THIS POINT IN A RECOVERY INFLATION TRADITIONALLY KICKS IN HE'S ESTIMATING INFLATION OF ABOUT 3 THIS YEAR AND 35 NEXT YEAR THE UNANSWERED QUESTION HE CONTINUES IS WHEN WILL THE ECONOMY SLOW DOWN TO KEEP INFLATION UNDER CONTROL NOT THIS YEAR HE INSISTS JOHN BUSSEY CONTRIBUTED TO THIS ARTICLE 9404250087 940425 COMMODITIES NYMEX COMEX MEMBERS VOTE TODAY ON COMBINING EXCHANGES BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL MEMBERS OF THE NEW YORK MERCANTILE EXCHANGE AND THE COMMODITY EXCHANGE ARE SET TO VOTE TODAY ON A PROPOSAL THAT WOULD MERGE NEW YORK'S TWO BIGGEST FUTURES EXCHANGES THE VOTE IS THE FIRST CHANCE MEMBERS OF EITHER EXCHANGE HAVE HAD TO PASS JUDGMENT ON THE AGREEMENT REACHED A YEAR AGO BY THEIR BOARDS FOR THE MERGER TO PROCEED IT MUST BE APPROVED BY TWOTHIRDS OF THE MEMBERS OF COMEX THE WORLD'S BIGGEST PRECIOUSMETAL FUTURES EXCHANGE AND A SIMPLE MAJORITY OF MEMBERS OF NYMEX THE LARGEST ENERGYFUTURES EXCHANGE IF THE MERGER IS APPROVED NYMEX WILL PAY COMEX MEMBERS A TOTAL OF NEARLY 70 MILLION SAYS DANIEL RAPPAPORT CHAIRMAN OF NYMEX OF THAT SUM 42 MILLION WILL BE PAID IMMEDIATELY WITH ANOTHER 24 MILLION PLUS INTEREST DISTRIBUTED IN EQUAL ANNUAL PAYMENTS OVER THE NEXT FOUR YEARS DESPITE GROWING PRESSURE FROM FUTURES COMMISSIONS MERCHANTS SUCH AS MERRILL LYNCH & CO THAT WANT TO CUT COSTS AND IMPROVE EFFICIENCY THE PLAN IS THE FIRST FUTURES EXCHANGE MERGER PROPOSAL THAT HAS ACTUALLY REACHED THE STAGE OF A MEMBERSHIP VOTE IN NEARLY TWO DECADES MR RAPPAPORT SAYS USUALLY THEY'VE BEEN DERAILED AND KILLED OFF IN THE COMMITTEE STAGE DUE TO THE VESTED POLITICAL INTERESTS ON BOTH SIDES THE EGOS AND PETTY JEALOUSIES HE SAYS BUT SOME FUTURES TRADERS SAY THAT ENOUGH OF THEIR COLLEAGUES NOW APPEAR READY TO SHED TRADITIONAL ANIMOSITIES AND NEWER FEARS ABOUT A LOSS OF AUTONOMY IN A MERGED EXCHANGE TO ENSURE THAT PROMERGER FORCES WILL CARRY THE DAY THE WAY THE MOMENTUM IS BUILDING THE FEARS ARE BEING ALLAYED AND PEOPLE ARE STARTING TO THINK ABOUT THE ADVANTAGES OF BEING PART OF A BIG EXCHANGE THAT CAN COMPETE GLOBALLY SAYS STEVEN KARVELLAS WHO TRADES CRUDE OIL FUTURES AT NYMEX AND GOLD FUTURES AT COMEX IF THE IDENTICAL PROPOSAL HAD BEEN BROUGHT IN FROM OUTSIDE IT WOULD HAVE BEEN DONE IN 30 DAYS BECAUSE WE ALL KNOW EACH OTHER IT'S MORE DIFFICULT WHILE SOME NYMEX MEMBERS HAVE DEBATED THE PRICE THEIR EXCHANGE WILL PAY FOR COMEX OPPOSITION TO THE MERGER HAS BEEN STRONGER AT COMEX THAT EXCHANGE'S MEMBERS WOULD GIVE UP THEIR AUTONOMY AND SOME OF THEIR POWER THEY WOULD RETAIN EXCLUSIVE RIGHTS TO TRADE THEIR PRECIOUS METALS CONTRACTS BUT WOULDN'T BE ABLE TO VOTE IN THE ELECTION OF MEMBERS TO NYMEX'S BOARD WHICH WOULD HAVE THE FINAL SAY IN MATTERS AFFECTING THE COMBINED EXCHANGE COMEX WHICH WOULD KEEP ITS NAME AND OPERATE AS A DIVISION OF NYMEX WOULD HAVE ITS OWN BOARD OF GOVERNORS SERVING AS ADVISERS TO NYMEX COMEX FOR MANY YEARS THE LARGER EXCHANGE HAS SEEN THE VALUE OF ITS MEMBERSHIPS DECLINE TO ABOUT 100000 FROM 325000 ABOUT TWO DECADES AGO WHILE THOSE OF NYMEX HAVE SOARED TO MORE THAN 400000 FROM 25000 IN THE SAME PERIOD IT'S TAKEN YEARS FOR THE OLD GUARD AT COMEX TO ABSORB AND COME TO GRIPS WITH THOSE FACTS AND NOT HARBOR RESENTMENT MR RAPPAPORT SAYS SOME OF COMEX'S INDEPENDENT TRADERS SAY THEY WOULD RATHER SEE IT TRANSFORMED INTO A FORPROFIT ORGANIZATION AND SURVIVE AS AN INDEPENDENT BOUTIQUE FUTURES EXCHANGE THERE'S A LOT OF POTENTIAL IN THAT KIND OF IDEA AND A LOT OF THE GUYS ARE TALKING ABOUT IT SAID VINCENT ZUCCARELLI WHO HAS TRADED COPPER AT THE COMEX FOR ABOUT 20 YEARS AND WHOSE TWO SONS HAVE FOLLOWED HIM INTO THE FUTURES TRADING PITS NEVERTHELESS ALL THREE ZUCCARELLIS HAVE MAILED IN THEIR VOTES IN FAVOR OF THE MERGER BELIEVING THAT THE LARGE BROKERAGE HOUSES WOULD BOYCOTT THE SCHEME WE'RE KIND OF BOWING TO THE INEVITABLE MR ZUCCARELLI SAID ANYWAY THIS IS A HECK OF A LOT BETTER DEAL THAN OTHER MERGER PROPOSALS MADE TO COMEX INCLUDING LAST YEAR'S FAILED ATTEMPT BY THE CHICAGO BOARD OF TRADE TO ACQUIRE THE THENSTRUGGLING PRECIOUS METALS EXCHANGE AN AGGRESSIVE LASTMINUTE LOBBYING EFFORT BY SENIOR OFFICIALS OF BOTH EXCHANGES HAVE HELPED SWAY OTHER TRADERS IF THE MERGER PLAN FAILS MR RAPPAPORT SAYS THERE WILL BE NO SECOND CHANCE WE'RE IN A DRASTIC PHYSICAL FACILITY SQUEEZE AND WE HAVE TO MAKE A DECISION TO CREATE A NEW TRADING FACILITY FOR NYMEX HE ADDED WE'LL MOVE AHEAD WITH THAT ON OUR OWN IN 30 TO 60 DAYS AFTER THE VOTE AND WE WON'T BUILD A BIGGER SPACE THAN WE NEED IN THE HOPE OF ONE DAY BRINGING ANOTHER EXCHANGE IN TO SHARE IT IF APPROVED IN THE VOTE TODAY THE MERGER STILL REQUIRES THE APPROVAL OF THE COMMODITY FUTURES TRADING COMMISSION A REGULATORY PROCESS WHICH COULD TAKE THREE TO FOUR MONTHS ONE WILD CARD WHICH COULD RESURFACE DURING THAT WAITING TIME IS AN ATTEMPT BY COMEX OPTIONS TRADERS TO DERAIL THE MERGER OPTIONS TRADERS HAVE A LESS EXPENSIVE FORM OF MEMBERSHIP IN THE EXCHANGE WHICH DOESN'T GIVE THEM VOTING RIGHTS THEY WOULDN'T RECEIVE ANYTHING FROM THE MERGER AND HAVE FILED A CLASS ACTION SUIT IN NEW YORK STATE SUPREME COURT SEEKING TO BLOCK IT AND ASKING FOR 18 MILLION IN DAMAGES FROM BOTH FUTURES EXCHANGES MR RAPPAPORT SAYS THE OPTIONS TRADERS HAVEN'T SOUGHT AN INJUNCTION TO BLOCK THE VOTE LOOKING AHEAD TO OTHER COMMODITY MARKETS THIS WEEK PRECIOUS METALS RISING US INTEREST RATES AND THE EASING OF TENSION IN SOUTH AFRICA ARE TAKING THE FIZZ OUT OF GOLD SILVER AND PLATINUM DEALERS SAY JUST PRIOR TO EASTER THE PRECIOUSMETALS MARKET WAS HUMMING SAYS ALAN BAKER AN EXECUTIVE DIRECTOR OF DEUTSCHE BANK SHARPS PIXLEY IN LONDON NOW IT IS DELICATELY POISED SPOT SILVER PLUNGED 14 CENTS OR 3 TO 507 AN OUNCE FRIDAY DRAGGING SPOT GOLD DOWN TO 369 AN OUNCE JULY PLATINUM FUTURES ARE LANGUISHING AROUND 390 SINCE THEIR RECENT PEAKS IN THE WEEK BEFORE EASTER SILVER IS DOWN BY 13 PLATINUM BY 11 AND GOLD 6 PRECIOUS METALS ARE SLIDING MAINLY BECAUSE COMMODITY AND HEDGE FUNDS ARE LIQUIDATING THEIR HOLDINGS DEALERS SAY INITIALLY PRICES PARTICULARLY THAT OF SILVER SURGED WHEN COMMODITY AND HEDGE FUNDS POURED MONEY INTO PRECIOUS METALS AS A SUPPOSED HAVEN FROM TUMBLING STOCKS AND BONDS DEALERS SAY VIOLENCE IN SOUTH AFRICA THE WORLD'S BIGGEST PRODUCER OF GOLD AND PLATINUM AND A POLITICAL CRISIS IN MEXICO A MAJOR SILVER PRODUCER KEPT THE POT BOILING YET AS THE TWO NATIONS CALMED DOWN THE MARKET ONCE AGAIN FOCUSED ITS ATTENTION ON CHEAPER STOCKS AND BONDS THAT ARE NOW OFFERING MORE ATTRACTIVE YIELDS PRECIOUS METALS AND OTHER COMMODITIES DON'T YIELD ANY INTEREST AND THERE ARE STORAGE COSTS FOR THE RAW MATERIALS REAL INFLATIONADJUSTED INTEREST RATES ARE AT THEIR HIGHEST IN FOUR YEARS SAYS TONY WARWICKCHING WHO EDITS A PRECIOUS METALS NEWSLETTER AT LONDON COMMODITY CONSULTANTS CRU INTERNATIONAL LTD UNTIL TANGIBLE INFLATIONARY PRESSURES EMERGE THE ECONOMIC ENVIRONMENT ISN'T PARTICULARLY POSITIVE FOR GOLD SILVER AND PLATINUM ARE ALSO HAMPERED BY EXPECTATIONS THAT HIGHER INTEREST RATES WILL CRIMP DEMAND HE ADDS SUPPLIES ARE AMPLE TOO PERIODIC STRIKES ARE TAKING PLACE AT SOUTH AFRICAN GOLD AND PLATINUM MINES BUT BARRING DISASTERS THE IMPACT ON PRODUCTION SHOULD BE NEGLIGIBLE HE SAYS NEIL BEHRMANN CONTRIBUTED TO THIS ARTICLE 9404250086 940425 FERRO REPURCHASES SOME OF ITS SHARES PLANS CHINA VENTURE CLEVELAND THE CHAIRMAN OF FERRO INC SAID THE COMPANY BOUGHT 200000 OF ITS OWN SHARES IN RECENT DAYS AND MAY BUY MORE BECAUSE IT BELIEVES THE PRICE IS DEPRESSED FERRO ALSO SAID IT AGREED TO ESTABLISH A JOINTVENTURE COMPANY IN CHINA TO MAKE AND MARKET CERAMIC FRITS GLAZES COLORS AND GRINDING MEDIA WHICH CRUSH PIGMENTS AND OTHER MATERIALS TERMS WEREN'T DISCLOSED THE COMPANY TO BE CALLED FOSHANFERRO CERAMIC MATERIALS CO PLANS TO START OPERATING IN JANUARY 1996 ACCORDING TO FERRO WHICH WILL HOLD A MAJORITY INTEREST FERRO CHAIRMAN ALBERT C BERSTICKER ALSO SAID THE MARKET OVERREACTED TO THE COMPANY'S FIRSTQUARTER RESULTS AND SAID SOME ANALYSTS MAY HAVE OVERLOOKED THE COMPANY'S STATEMENT THAT THE RESULTS WERE MOSTLY DUE TO ONETIME EVENTS FERRO'S STOCK CLOSED THURSDAY AT 2550 A 52WEEK LOW ON FRIDAY FERRO ROSE 75 CENTS TO 2625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING EARLIER LAST WEEK FERRO A MAKER OF INDUSTRIAL SPECIALTY MATERIALS REPORTED FIRSTQUARTER EARNINGS OF 113 MILLION OR 35 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 74 MILLION OR 28 CENTS A SHARE THE 1993 FIRSTQUARTER RESULTS WERE ADJUSTED TO REFLECT ACCOUNTING CHANGES PRIOR TO THE ADJUSTMENT THE COMPANY HAD NET INCOME OF 131 MILLION OR 42 CENTS A SHARE FERRO EXPECTS 1994 EARNINGS IN THE RANGE OF 189 TO 190 A SHARE MR BERSTICKER SAID IN 1993 THE COMPANY EARNED 37 MILLION OR 113 A SHARE ON SALES OF 165 BILLION 9404250085 940425 POLITICS & POLICY US THREATENS TO CURB WHEAT IMPORTS INCREASING TRADE PRESSURE ON CANADA BY ASRA Q NOMANI AND JOHN URQUHART STAFF REPORTERS OF THE WALL STREET JOURNAL THE CLINTON ADMINISTRATION STEPPING UP THE PRESSURE IN A TRADE DISPUTE THREATENED TO CURB IMPORTS OF WHEAT AND BARLEY FROM CANADA IF AGRICULTURAL CONFLICTS BETWEEN THE TWO COUNTRIES AREN'T SETTLED WITHIN 90 DAYS CANADA THREATENED TO RETALIATE BUT TRADE NEGOTIATORS ON BOTH SIDES OF THE BORDER SAID THEY EXPECT TALKS ON WHEAT AND OTHER AGRICULTURAL ISSUES TO CONTINUE AND WERE OPTIMISTIC THAT DIFFERENCES ULTIMATELY WOULD BE RESOLVED THE US AND CANADA SHARE MOSTLY FRIENDLY TRADE RELATIONS HAVING JUST COMPLETED THE SWEEPING NORTH AMERICAN FREE TRADE AGREEMENT WITH MEXICO THE DISPUTE HAS BEEN AN IRRITANT FOR SEVERAL YEARS HOWEVER WITH THE US CHARGING THAT CANADA EXPORTS TOO MUCH WHEAT AND OTHER GRAINS TO THE US HURTING AMERICAN FARMERS THE US ALSO CHARGES THAT CANADA UNFAIRLY SUBSIDIZES ITS FARM BUSINESS SENIOR CANADIAN OFFICIALS SAID A PRELIMINARY LIST OF POSSIBLE US TARGETS FOR RETALIATION INCLUDE CHICKEN WINE BOURBON WHISKEY CANNED FRUITS CANNED TOMATO PRODUCTS BAKERY PRODUCTS AND PASTA THE US SAID ON FRIDAY THAT IT WAS INFORMING MEMBERS OF THE GENEVABASED GENERAL AGREEMENT ON TARIFFS AND TRADE THAT IT WANTS TO START THE CLOCK RUNNING ON A 90DAY CONSULTATION PERIOD THAT PRECEDES TARIFFRATE QUOTAS SUCH AS THE ONES THE US WANTS TO LEVY AGAINST CANADIAN WHEAT AND BARLEY WITH SUCH A SYSTEM CANADIAN IMPORTS WOULD FACE TARIFFS IF THEY SURPASSED CERTAIN QUOTA LEVELS UNDER GATT ARTICLE 28 CANADA COULD COUNTER WITH TARIFFS IF NEGOTIATIONS FAILED US AGRICULTURE SECRETARY MICHAEL ESPY SAID THAT WITHOUT A RESOLUTION THE QUOTAS WOULD TAKE EFFECT JULY 1 THE START OF THE MARKETING YEAR THE US DIDN'T SAY HOW HIGH THE QUOTAS MIGHT BE FOR HIS PART CANADIAN TRADE MINISTER ROY MACLAREN REFERRED TO THE THREATENED US ACTION AS UTTERLY UNFAIR MR MACLAREN SAID THE US IN MANY CASES IS PURSUING PROTECTIONIST POLICIES FOR LARGELY REGIONAL CONCERNS IN THE US CANADIAN OFFICIALS ATTRIBUTED THE RISE IN CANADIAN GRAIN SHIPMENTS TO STRONG PRICES AND TIGHT SUPPLIES IN THE US THEY SAID THE US DOMESTIC MARKET PRICE FOR DURUM WHEAT HAS SKYROCKETED TO MORE THAN 300 A METRIC TON BECAUSE OF A SHORTAGE OF HIGHQUALITY DURUM WHICH IS USED TO MAKE PASTA PRODUCTS BOTH US AND CANADIAN OFFICIALS SAID THE 90DAY PERIOD GIVES THEM TIME TO SETTLE THEIR DIFFERENCES US TRADE REPRESENTATIVE MICKEY KANTOR SAID THE US REMAINS FULLY PREPARED TO NEGOTIATE A SETTLEMENT CANADIAN OFFICIALS SAID THEY ARE WILLING TO NEGOTIATE A TEMPORARY CAP ON THEIR WHEAT SHIPMENTS TO THE US BUT SO FAR THE NEGOTIATORS HAVEN'T BEEN ABLE TO AGREE ON HOW HIGH THE CAP SHOULD BE OR HOW LONG IT SHOULD BE IN PLACE THIS IS AN ISSUE THE CLINTON ADMINISTRATION WOULD PREFER TO RESOLVE FOR POLITICAL REASONS CONGRESS WOULD HAVE TO APPROVE THE PROPOSED RESTRICTIONS ON CANADIAN WHEAT AND BARLEY THERE'S MOUNTING OPPOSITION TO SUCH MEASURES LAST WEEK A BIPARTISAN GROUP OF 18 SENATORS SENT A LETTER TO THE ADMINISTRATION URGING IT TO EASE UP SAYING THAT PASTA PRODUCERS AND THE FOOD INDUSTRY WOULD BE HURT BY A TRADE WAR BEYOND DURUM WHEAT AND BARLEY THE TWO SIDES HAVE CONTINUING DISPUTES IN A RANGE OF OTHER AGRICULTURAL AREAS INCLUDING POULTRY DAIRY PRODUCTS SUGAR AND PEANUTS 9404250083 940425 CREDIT MARKETS BOND BUYERS SEE PROMISE OF STABILITY ONE MONEY MANAGER MAKES MAJOR SHIFT' GDP IS NEXT HURDLE BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT'S BEEN UGLY OUT THERE IN BOND LAND BUT A FEW MONEY MANAGERS SEE SOMETHING ATTRACTIVE SPROUTING RELATIVELY STABLE INTEREST RATES SO THEY ARE TIPTOEING BACK INTO THE BOND MARKET AND HOPING THAT SPRING WILL MARK AN END TO THE CARNAGE OF THE PAST 11 WEEKS SOME OF THESE INTREPID FEW STARTED BUYING LONGTERM BONDS AGAIN AS EARLY AS SIX WEEKS AGO GETTING HURT AS YIELDS KEPT RISING AND PRICES CONTINUED TO PLUNGE BUT THEY ARE STICKING IT OUT ANYWAY AND THEIR RANKS ARE GROWING LATE FRIDAY THE 30YEAR TREASURY BOND YIELDED 722 LITTLE CHANGED FROM THURSDAY BUT DOWN SHARPLY FROM 742 ON MONDAY WHEN THE FEDERAL RESERVE BOOSTED INTEREST RATES FOR THE THIRD TIME IN AS MANY MONTHS THE FED RAISED THE FEDERAL FUNDS RATE CHARGED AMONG BANKS FOR OVERNIGHT LOANS TO 375 FROM 35 ROBERT RODRIGUEZ IS ONE OF THE BONDMARKET EXPLORERS HE MANAGES THE 115 MILLION FPA NEW INCOME FUND AND LAST SUMMER HE WAS ONE OF THE FEW MONEY MANAGERS TELLING HIS CLIENTS THAT THE BULL MARKET IN BONDS WAS ON ITS LAST LEGS HE STILL THINKS THE LONGTERM BULL MARKET IN BONDS IS OVER BUT SEES A SHORTTERM TRADING OPPORTUNITY OVER THE NEXT YEAR OR TWO AS YIELDS ON LONGTERM BONDS SETTLE INTO A RANGE OF 65 TO 75 MY GUESS IS THAT SOMEWHERE IN THE NEIGHBORHOOD OF 90 OR MORE OF THE BACKUP IN YIELDS HAS PROBABLY ALREADY OCCURRED HE SAYS ADDING THAT THE BOND MARKET MAY BE HEADED FOR CALMER TIMES BUT THE LIKELIHOOD OF RETURNING TO THE YIELDS OF LAST FALL IS EXTREMELY REMOTE HE SAYS IN OCTOBER 1993 THE YIELD OF THE 30YEAR TREASURY BOND BOTTOMED AT 579 FPA NEW INCOME DISTINGUISHED ITSELF BY PLACING IN THE TOP 20 OF ALL GENERAL BOND FUNDS IN THE MARCH 31 RANKINGS WITH TOTAL 12MONTH RETURNS OF 6 AND RETURNS OF 114 ANNUALLY OVER THREE YEARS ACCORDING TO LIPPER ANALYTICAL SERVICES THE FUND HAD A RETURN OF 08 IN THE FIRST QUARTER WHILE MANY OTHER BOND FUNDS DID WORSE SO MR RODRIGUEZ IS DIPPING HIS FOOT INTO THE BOND MARKET BY MOVING 35 OF HIS ASSETS INTO 15YEAR ZEROCOUPON TREASURYS WHICH ARE VERY VULNERABLE TO RISING INTEREST RATES ZEROCOUPON BONDS ARE SOLD AT A STEEP DISCOUNT AND PAY NO INTEREST UNTIL MATURITY HE HAS ALSO MADE A MAJOR SHIFT OF 11 OF HIS ASSETS FROM VERY SHORTTERM INVESTMENTS SUCH AS COMMERCIAL PAPER MATURING IN LESS THAN A YEAR TO TWOYEAR TREASURY NOTES BY BUYING LONGERTERM SECURITIES MR RODRIGUEZ IS INCREASING HIS PORTFOLIO'S DURATION OR SENSITIVITY TO INTERESTRATE CHANGES LONGERTERM SECURITIES ARE MORE SENSITIVE TO INTERESTRATE CHANGES THAN SHORTERTERM SECURITIES FOR MR RODRIGUEZ AND OTHER MANAGERS THIS MEANS THAT THEY WILL EARN MORE IF RATES FALL AND LOSE MORE IF RATES RISE THAN IF THEIR PORTFOLIO HAS A SHORTER DURATION BUT MR RODRIGUEZ STILL HAS ABOUT HALF HIS ASSETS IN CASH OR VERY SHORTTERM INVESTMENTS I'M NOT SUICIDAL HE SAYS I DON'T GET MUCH YIELD FOR GOING OUT THERE AND BUYING VERY LONGTERM SECURITIES AND RISKING FURTHER INTERESTRATE BOOSTS HE HAS ALSO PUT 6 OF HIS ASSETS INTO SOME EXOTIC MORTAGAGEBACKED SECURITIES WHICH ARE EXTREMELY SENSITIVE TO INTERESTRATE SWINGS SOME OF THESE LONGERTERM BONDS I CONSIDER THEM TRADING SEEDS RATHER THAN PLANTING SEEDS HE EXPLAINS IN THE EARLY 1990S MR RODRIGUEZ LOADED UP ON LONGTERM TREASURY STRIPS AND PUT THEM AWAY IN A SAFEDEPOSIT BOX THIS TIME AROUND HIS BUYING OF STRIPS IS MUCH MORE A SHORTTERM BET ON THE DIRECTION OF INTEREST RATES BUT HOW ABOUT THE FIRSTQUARTER GROSS DOMESTIC PRODUCT REPORT WHICH IS SLATED TO BE RELEASED THURSDAY IT JUMPED 7 IN LAST YEAR'S FOURTH QUARTER AND THE MARKET COULD BE PUSHED LOWER IF INVESTORS ARE STARTLED BY A STRONG NUMBER THURSDAY SINCE IT MIGHT BE A HARBINGER OF HIGHER INFLATION THE BANE OF BOND INVESTORS MANY ECONOMISTS HAVE NUDGED UP THEIR PREDICTIONS TO SHOW AN INCREASE OF 4 OR HIGHER FOR THE QUARTER MR RODRIGUEZ ISN'T TOO WORRIED HE THINKS THE END OF THE SELLOFF IS IN SIGHT AND STABILITY IS ON THE WAY IF GDP COMES IN STRONG AND BONDS GET HIT I'LL BE BUYING MORE LONGTERM BONDS HE SAYS THERE ARE OTHER BRAVE SOULS IN THE RANKS OF MONEY MANAGERS TAKE ROBERT M BALENTINE JR PRESIDENT OF BALENTINE & CO AN INVESTMENT ADVISORY FIRM BASED IN ATLANTA WITH NEARLY 1 BILLION IN ASSETS UNDER MANAGEMENT HE SAYS THAT FOR THE PAST SIX WEEKS HE HAS BEEN BUYING LONGER BONDS FOR THE TAXABLE AND TAXEXEMPT BOND PORTFOLIOS THAT HE MANAGES FOR INDIVIDUAL INVESTORS HE HAS SOLD HOLDINGS OF BONDS MATURING IN THREE TO FIVE YEARS AND BOUGHT UP BONDS MATURING IN 10 TO 12 YEARS HE NOW HOLDS MORE THAN 50 OF THE PORTFOLIOS IN THESE LONGTERM SECURITIES UP FROM 20 JUST FOUR WEEKS AGO AND HE PLANS TO BUY MORE LONGTERM SECURITIES IF THE 30YEAR TREASURY YIELD REACHES 75 MOSTLY TREASURYS AND HIGHGRADE CORPORATE BONDS OR MUNICIPAL BONDS IF THE FED ALLOWS THE FEDERAL FUNDS RATE TO COME UP TO 4 OR HIGHER THE ECONOMY IS GOING TO SLOW DOWN HE EXPLAINS WE DON'T THINK INFLATION IS A PROBLEM MR BALENTINE SEES LONGTERM RATES DROPPING UP TO A FULL PERCENTAGE POINT BY THE END OF THE YEAR BUT THIS IS A SHORTTERM PLAY FOR MR BALENTINE AS WELL WE'RE NEAR THE END OF A LONGTERM DECLINE IN INTEREST RATES HE SAYS ADDING THAT WE MAY BE IN FOR A PROLONGED PERIOD OF GRADUALLY INCREASING INTEREST RATES TO BEGIN IN THE NEXT ONE TO TWO YEARS AMONG PORTFOLIOS HE MANAGES THAT INVEST IN BOTH STOCKS AND BONDS HE HAS ALLOCATIONS OF 40 FOR BONDS 50 FOR STOCKS AND THE REST IN CASH COMPARED WITH LAST SUMMER'S 50 IN BONDS AFTER TAKING ADVANTAGE OF HIS CURRENT POSITIONS ASSUMING THAT RATES FALL A BIT ONE MORE TIME MR BALENTINE PLANS TO GRADUALLY MOVE THESE ALLOCATIONS TO 100 STOCKS IN TWO OR THREE YEARS THERE IS A POSSIBILITY THAT WE WOULD HAVE NO BONDS HE SAYS JIM KOCHAN DIRECTOR OF FIXEDINCOME ASSET MANAGEMENT AT ROBERT W BAIRD & CO OF MILWAUKEE WITH 400 MILLION IN FIXEDINCOME ASSETS UNDER MANAGEMENT IS ALSO TAKING THE PLUNGE HE BOUGHT SOME 30YEAR TREASURY ZEROCOUPON BONDS AT THE END OF MARCH AND THE BEGINNING OF APRIL THEY HAVE BEEN PAINFUL TO HOLD THANKS TO CONTINUED INTERESTRATE INCREASES BUT HE IS HOLDING OUT IN THE MEANTIME MR KOCHAN SAYS THAT HE HAS BEEN BUYING LOTS OF MORTGAGEBACKED SECURITIES AS MUCH AS 40 OF ALL THE FUNDS HE MANAGES ARE IN THAT MARKET HE SAYS THAT HE IS TAKING ADVANTAGE OF WHAT HE CONSIDERS AN OVERREACTION OF MANY INVESTORS TO PROBLEMS IN SOME OF THE MORE EXOTIC MORTGAGEBACKED SECTORS PLUNGING PRICES AND EXTREME ILLIQUIDITY HAVE WREAKED HAVOC ON MANY FUNDS SPECIALIZING IN SUCH SECURITIES THE PENDULUM SWUNG TOO FAR IN THE MORTGAGEBACKED SELLOFF HE SAID IT SEEMS TO ME THAT MANY INVESTORS ARE NOW TOO BEARISH ON MORTGAGEBACKED SECURITIES MEANWHILE MR KOCHAN HAS JUST 10 OF HIS ASSETS IN CASH FOR THE REMAINDER OF THIS QUARTER AND UNTIL VERY LATE IN THE YEAR I DON'T EXPECT THE YIELD ON THE BOND TO GO MUCH BEYOND 75 HE SAYS ON THE OTHER HAND MR KOCHAN SEEMS TO HAVE A VERY ITCHY TRIGGER FINGER FOR SELL ORDERS THE IDEA IS TO TAKE PROFITS IF YIELDS GET TO 7 FOR THE 30YEAR TREASURY BOND HE SAYS BUT LIFE ISN'T EASY FOR BOND MANAGERS TAKE ALAN KRAL WHO OVERSEES A 400 MILLION PORTFOLIO FOR TREVOR STEWART BURTON & JACOBSEN INC OF NEW YORK HE BELIEVES THAT THE LONGTERM TREND OF INTEREST RATES IS STILL DOWN AND HE ACTED ON IT AT THE END OF FEBRUARY JUST WHEN THE SELLOFF WAS PICKING UP STEAM HE INCREASED THE DURATION OF HIS PORTFOLIO TO 14 YEARS FROM 12 YEARS AND BOUGHT A BUNCH OF 25YEAR TREASURY ZEROCOUPONS WHILE HOLDING A LARGE POSITION IN SHORTTERM TREASURY SECURITIES AT THE SAME TIME SUCH A POSITION MIGHT HAVE PROFITED MIGHTILY IF LONGTERM RATES HADN'T RISEN SO MUCH HE SAYS BUT IT WAS BETTER THAN BUYING ONLY LONGTERM TREASURYS WITH COUPONS HE SAYS HE LOST LESS MONEY THAN HE WOULD HAVE OTHERWISE THAT IS PART OF THE PROBLEM WITH MANAGING A BOND FUND WHEN THE MARKET IS GOING SOUTH HE SAYS I'M DEAD WITH 18 HOLES TO MY HEAD INSTEAD OF 20 HE SAYS ADDING THAT NEVERTHELESS THAT'S HOW YOU INVEST MONEY AS A PROFESSIONAL MANAGER ONE CAN'T CALL THE TURNS IN THE MARKET HE SAYS BUT ONE MUST BE IN POSITION TO TAKE ADVANTAGE OF THEM WHEN THEY COME THERE IS A SIGN THAT THINGS MAY BE IMPROVING FOR THE BOND MARKET THE DOW JONES UTILITY AVERAGE THE UTILITY AVERAGE IS WIDELY SEEN AS A CONTRARY INDICATOR OF TRENDS IN LONGTERM BOND YIELDS IT MEASURES THE STOCKPRICE CHANGES OF 11 ELECTRIC UTILITIES AND FOUR NATURALGAS COMPANIES MANY ANALYSTS BELIEVE IT ANTICIPATES MAJOR CHANGES IN INTERESTRATE CYCLES THAT IS BECAUSE UTILITIES TEND TO PAY HIGH DIVIDENDS AND OFTEN ATTRACT THE KIND OF CONSERVATIVE YIELDORIENTED INVESTORS WHO ALSO BUY BONDS WHEN INVESTORS EXPECT BOND YIELDS TO RISE THEY SELL OFF UTILITY STOCKS BETTING THAT A RISE IN BOND YIELDS WILL MAKE THESE STOCKS LESS VALUABLE FOR THE PAST YEAR THE UTILITY AVERAGE HAS BEEN QUITE ACCURATE THE UTILITY STOCKPRICE AVERAGE ROSE IN ADVANCE OF A PRECIPITOUS DROP IN LONGTERM BOND YIELDS TO 579 IN OCTOBER UNTIL EARLIER THIS MONTH THE AVERAGE HAS BEEN FALLING AS RATES SOARED BUT IT HAS STARTED TO RISE AGAIN A SIGN THAT EVEN LOWER RATES COULD BE ON THE WAY THROUGH APRIL 4 THE AVERAGE DROPPED MORE THAN 34 POINTS TO 19299 BUT SINCE THEN IT HAS RISEN 626 POINTS TO 19925 AS OF FRIDAY PRICES OF US TREASURY SECURITIES BOBBED AND WEAVED FRIDAY BEFORE ENDING WITH MODERATE LOSSES THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND DROPPED 1/8 POINT OR 125 FOR A BOND WITH A 1000 FACE VALUE TO 88 4/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO 722 FROM 721 ON THURSDAY TRADING WAS LARGELY TECHNICAL WITH BURSTS OF INVESTOR ACTIVITY PERIODICALLY SENDING THE MARKET BACK AND FORTH WITHIN WELLDEFINED RANGES WE SAW SOME VERY ERRATIC SWINGS SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS THERE WAS NO PRICE RESPONSE TO THE NOMINATION OF TWO TOP FEDERAL RESERVE OFFICIALS FRIDAY PRESIDENT CLINTON NOMINATED ALAN BLINDER FOR THE POSITION OF FED VICE CHAIRMAN AND JANET YELLEN WAS NOMINATED TO FILL THE VACANT FED GOVERNOR SLOT ALTHOUGH THE FINANCIAL MARKETS ARE EXTREMELY NERVOUS THAT THE TWO APPOINTEES WILL TILT THE FED AWAY FROM ITS INFLATIONFIGHTING RESOLVE THE NOMINATIONS HAD BEEN WIDELY EXPECTED AND DIDN'T AFFECT TRADING TRADERS HAVE TURNED THEIR ATTENTION TO THIS WEEK'S OFFERINGS OF NEW GOVERNMENT DEBT THE TREASURY DEPARTMENT IS SLATED TO SELL 17 BILLION OF TWOYEAR NOTES TOMORROW AND 11 BILLION OF FIVEYEAR NOTES WEDNESDAY IN WHENISSUED TRADING LATE FRIDAY THE TWOYEAR NOTE YIELDED 566 AND THE FIVEYEAR NOTE YIELDED 656 9404250082 940425 GROUP SUES DAMARK SAYING IT HAS RIGHTS TO 16 STAKE IN FIRM MINNEAPOLIS AN INVESTOR GROUP SPOTTING A POSSIBLE WINDFALL IS SUING MAILORDER MERCHANDISER DAMARK INTERNATIONAL INC ALONG WITH TWO COMPANY COFOUNDERS FOR A 16 DAMARK STAKE THE SUIT BY DLH INC CLAIMS ONE OF THE COFOUNDERS SEVEN YEARS AGO FILED FOR PERSONAL BANKRUPTCYLAW PROTECTION BUT CONCEALED HIS HOLDINGS IN THE THENNASCENT COMPANY AS DAMARK HAS GROWN THE STOCK IN QUESTION HAS SPLIT AND INCREASED IN VALUE AND CURRENTLY REPRESENTS 15 MILLION SHARES VALUED AT ABOUT 36 MILLION FORMER DAMARK CHAIRMAN DAVID RUSS FILED FOR PERSONAL BANKRUPTCY IN MID1987 AFTER A BUSINESS FAILED BUT THE DLH SUIT FILED IN STATE COURT IN HENNEPIN COUNTY CONTENDS MR RUSS WHO LEFT DAMARK IN 1991 WRONGFULLY HID THE STAKE THE GROUP FORMED AFTER A MEMBER GOT WIND OF THE MATTER LAST YEAR BOUGHT THE PUTATIVE RIGHTS TO THE DAMARK SHARES FROM THE BANKRUPTCY TRUSTEE LAST MONTH BUT MR RUSS NO LONGER HOLDS ALL THE SHARES SOME OF THE STOCK ALSO IS OWNED BY DAMARK CHAIRMAN AND CHIEF EXECUTIVE OFFICER MARK COHN THE SUIT SAYS MR COHN GOT A 1991 OPTION TO BUY 12 MILLION SHARES AT 5 TO 747 EACH FROM MR RUSS MR COHN SINCE EXERCISED CERTAIN OPTIONS AND RECEIVED ABOUT 600000 SHARES DAMARK IS BEING SUED BECAUSE THE SUIT CLAIMS THE COMPANY BOUGHT ABOUT 300000 OF THE SHARES FROM MR RUSS WHEN HE LEFT A DAMARK SPOKESMAN SAID IT CONSIDERS THE CASE AN ISSUE BETWEEN SHAREHOLDERS THAT DOESN'T INVOLVE THE COMPANY MR RUSS AND MR COHN COULDN'T BE REACHED IMMEDIATELY FOR COMMENT BUT MR COHN HAS BEEN QUOTED IN A MINNEAPOLIS NEWSPAPER AS SAYING THE SUIT IS WITHOUT MERIT THE SUIT ASKS THE COURT TO DECLARE DLH THE LEGAL OWNER OF THE SHARES AND TO ISSUE A JUDGMENT FOR THE GROUP OF 462 MILLION REPRESENTING THE MARKET VALUE OF THE SHARES WHEN THE SUIT WAS FILED LAST MONTH ALTERNATIVELY IT SEEKS DELIVERY OF THE SHARES 9404250081 940425 FOREIGN EXCHANGE DOLLAR FAILS TO HOLD ONTO GAIN SCORED ON NEWS OF HATA'S NOMINATION IN JAPAN BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR WEAKENED SLIGHTLY ON FRIDAY FAILING TO MAINTAIN GAINS THAT FOLLOWED THE NEWS THAT JAPAN'S RULING COALITION HAD UNITED BEHIND A CANDIDATE FOR THE PREMIERSHIP THE FORMAL NOMINATION OF FOREIGN MINISTER TSUTOMU HATA TO BE JAPAN'S NEXT PRIME MINISTER STIRRED HOPES THAT MORIBUND USJAPAN TRADE TALKS WOULD BE REVIVED THAT WOULD REDUCE THE REASONING WENT THE THREAT OF US PRESSURE TO PUSH UP THE YEN IN ORDER TO NARROW THE BILATERAL TRADE DEFICIT THE DOLLAR BENEFITED AGAINST THE YEN FROM SUCH REASONING TRADERS NOTED THAT THE DOLLAR'S FLUCTUATIONS AGAINST EUROPEAN CURRENCIES BASICALLY MIMICKED THE DOLLAR'S MOVEMENT AGAINST THE JAPANESE UNIT THE DOLLAR THEN FELL FROM ITS INTRADAY HIGHS IN A MAINLY TECHNICAL MOVE AS STEADY PROFITTAKING GAVE WAY TO MILD STOPLOSS ORDERS THAT ACCELERATED THE US CURRENCY'S RETREAT IN ADDITION POSITIONSQUARING BEFORE THE WEEKEND MEETING OF THE GROUP OF SEVEN INDUSTRIALIZED NATIONS TOOK A TOLL INVESTORS UNWOUND POSITIONS BECAUSE OF WORRIES THAT THE DOLLAR WOULD MOVE UNPREDICTABLY IF THE NATIONS CONCLUDED THEIR MEETING WITH SOME KIND OF UNEXPECTED ANNOUNCEMENT THE G7 ENDED ITS MEETING IN WASHINGTON LATE YESTERDAY AFTERNOON AFTER THE MEETING US TREASURY SECRETARY LLOYD BENTSEN SAID THE GROUP COMMITTED ITSELF TO CONTINUED CLOSE COOPERATION IN THE FOREIGNEXCHANGE MARKET HE ADDED THAT THE MEETING PARTICIPANTS NOTED THAT EXCHANGE RATES HAVE REMAINED RELATIVELY UNAFFECTED DURING THE PERIOD OF RISING LONGTERM INTEREST RATES THE G7 COUNTRIES ARE THE US GERMANY JAPAN CANADA FRANCE BRITAIN AND ITALY TRADERS SAID A THIN AND ILLIQUID MARKET EXAGGERATED THE DOLLAR'S VOLATILITY AND THERE WAS LITTLE IN FRIDAY'S MARKET TO OFFER CLUES TO THE CURRENCY'S DIRECTION LATE IN NEW YORK TRADING FRIDAY THE DOLLAR WAS QUOTED AT 16900 MARKS DOWN SLIGHTLY FROM 16910 MARKS LATE THURSDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10325 YEN DOWN FROM 10365 YEN STERLING WAS TRADING AT 14885 DOWN FROM 14905 ABOUT NOON MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 10308 YEN AND AT 16855 MARKS THE MARKET GENERALLY VIEWS MR HATA AS A MORE SEASONED POLITICIAN THAN OUTGOING PRIME MINISTER MORIHIRO HOSOKAWA MR HATA IT IS BELIEVED WOULD BE MORE CAPABLE OF UNITING THE JAPANESE PARLIAMENT BEHIND A TRADE AGREEMENT WITH THE US BUT TRADERS SAID OPTIMISM OVER MR HATA'S NOMINATION WHICH HAD BEEN LARGELY EXPECTED GAVE WAY TO WORRIES ABOUT THE G7 MEETING THE MARKET IS NOT EXPECTING TOO MUCH OUT OF THE G7 OTHER THAN THE USUAL BROADBRUSH COMMMENTS STATING THAT AS EVER G7 CONTINUES TO COOPERATE SAID DENNIS PETTIT FOREIGN EXCHANGE MANAGER FOR THE LONGTERM CREDIT BANK OF JAPAN IN NEW YORK TRADERS SAID THE ONE SURPRISE MOVE THAT COULD SHOCK CURRENCY MARKETS INTO A DOLLARBUYING BINGE WOULD BE AN ANNOUNCEMENT BY THE G7 THAT IT WOULD ENTER INTO COORDINATED CENTRAL BANK INTERVENTION TO PUSH THE DOLLAR HIGHER AND HELP SUPPORT JAPAN'S SAGGING ECONOMY NOBODY'S EXPECTING COORDINATED INTERVENTION OR INTERFERENCE AS I PREFER TO CALL IT THESE DAYS MR PETTIT SAID OTHER TRADERS AGREED THAT THE LIKELIHOOD OF SUCH A G7 ACTION WOULD BE SLIM INDEED NEVERTHELESS THEY SAID THEY WOULD BE ON THE ALERT FOR THE UNEXPECTED THERE'S ALWAYS THE RISK THEY WILL GET TOGETHER AND DECIDE THE WEAKNESS OF THE DOLLARYEN IS IN NOBODY'S FAVOR THAT IT'S NOT GOING TO ADDRESS THE TRADE IMBALANCE OR HELP A WEAK JAPANESE ECONOMY SAID BERND BECKER ASSISTANT VICE PRESIDENT AT BANK JULIUS BAER & CO IN NEW YORK TRADERS SAID THE ODDS ARE THAT THERE WILL BE NO PROGRESS ON THE BILATERAL USJAPAN TRADE DISPUTE AND THAT WOULD LEAVE THE DOLLAR TESTING LOWER GROUND AGAINST THE YEN AFTER THE MEETING WITH NOTHING COMING OUT THE DOLLAR SHOULD DRIFT LOWER AND PERHAPS TEST 10210 YEN SAID LIZBETH GOLDBERG ASSISTANT VICE PRESIDENT BAYERISCHE HYPOTHEKENUND WECHSELBANK AG IN NEW YORK THE MARKET ALSO APPEARED TO HAVE DISCOUNTED NEWS OF THE NOMINATION OF TWO PERCEIVED PROGROWTH ADVOCATES AS GOVERNORS OF THE US FEDERAL RESERVE BOARD THEY ARE ALAN BLINDER A MEMBER OF THE COUNCIL OF ECONOMIC ADVISERS AND JANET YELLEN A PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY 9404250080 940425 HEARD ON THE STREET POHLAD'S BID FOR FIBREBOARD FAILS TO PROP STOCK REFLECTING INVESTOR DOUBTS ABOUT HIS SINCERITY BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS HAVE A MESSAGE FOR CARL POHLAD STICK TO BASEBALL MR POHLAD A BANKER WHO OWNS THE MINNESOTA TWINS RECENTLY PROPOSED ACQUIRING FIBREBOARD FOR 45 A SHARE BUT THE MARKET ISN'T BUYING IT FIBREBOARD HAS REJECTED TWO POHLAD OVERTURES AND THE SHARES ARE MIRED AT 34 7/8 UP 3/8 FRIDAY TRADERS SAY THE BID BY MR POHLAD 78 YEARS OLD HAS A CREDIBILITY PROBLEM ALTHOUGH HE HAS BEEN INVOLVED IN SEVERAL SUCCESSFUL TAKEOVERS IN THE PAST SOMETIMES WITH ONETIME RAIDER IRWIN JACOBS INVESTORS THINK MR POHLAD ISN'T SERIOUS ABOUT BUYING THE WALNUT CREEK CALIF WOODPRODUCTS COMPANY HERE'S THEIR ARGUMENT IF MR POHLAD WERE SINCERE HE WOULD BE MAKING A TENDER OFFER OR WAGING A PROXY FIGHT THEY SAY BUT HE HAS YET TO MAKE A FORMAL OFFER FOR THE STOCK AND HE MISSED THE DEADLINE FOR FILING FOR A PROXY CONTEST NOR HAS HE DISCLOSED ANY FINANCING FOR THE BID WHICH WOULD COST 175 MILLION FOR THE 928 STAKE HE DOESN'T ALREADY OWN IN LETTERS HE HAS SENT FIBREBOARD SINCE HIS INITIAL PROPOSAL MARCH 14 HE HASN'T SAID WHERE THE MONEY WOULD COME FROM THE CIRCUMSTANCES MAKE INVESTORS THINK MR POHLAD DOESN'T REALLY WANT THE COMPANY THEY SAY HE IS EITHER TRYING TO PUT FIBREBOARD IN PLAY OR THAT HE MISJUDGED THE COMPANY'S WILLINGNESS OR ITS ABILITY TO BUY HIM OUT THAT EXPLAINS WHY THE STREET'S RISK ARBITRAGERS WHO MAKE A LIVING BY FLOCKING TO TAKEOVER STOCKS HAVE GENERALLY STAYED AWAY MR POHLAD DIDN'T RETURN TELEPHONE CALLS FOR COMMENT FIBREBOARD SHARES TRADED FOR AS LITTLE AS 10 A YEAR AGO THE PRODUCER OF LUMBER PLYWOOD AND OTHER WOOD PRODUCTS BEGAN TO CATCH THE EYE OF INVESTORS WHEN ITS INSURERS AFTER A DECADE OF LITIGATION AGREED TO PAY 3 BILLION TO SETTLE ASBESTOS CLAIMS AGAINST THE COMPANY FOLLOWING THE SETTLEMENT PROPOSAL THE STOCK SOARED KEN FULLER A MONEY MANAGER WITH MANLEY FULLER INVESTMENT MANAGEMENT CO IN NEW YORK WAS DRAWN TO FIBREBOARD BEFORE IT SETTLED THE LITIGATION HE LIKES THE STOCK ON FUNDAMENTALS RATHER THAN AS A TAKEOVER PLAY THE COMPANY EARNED 266 A SHARE LAST YEAR MR FULLER THINKS PROFIT COULD RISE TO AS MUCH AS 5 A SHARE BY 1997 SO THERE IS STILL GOOD UPSIDE POTENTIAL IN THE EARNINGS MR POHLAD MADE A FORTUNE IN COMMUNITY BANKING BUT ONE INVESTMENT VEHICLE HE TOOK PUBLIC MEI DIVERSIFIED ENTERED CHAPTER 11 BANKRUPTCY PROCEEDINGS LAST YEAR LIKE MR FULLER MR POHLAD ALSO BELIEVES FIBREBOARD STOCK IS UNDERVALUED HE OWNS 300900 SHARES OR 716 OF FIBREBOARD STOCK ACCORDING TO HIS MOST RECENT REGULATORY FILINGS HE HAS SAID HE WAS ATTRACTED TO THE COMPANY'S STRONG BALANCE SHEET 80000 ACRES OF TIMBERLAND IN THE SIERRANEVADA MOUNTAINS AND A SKI RESORT AT LAKE TAHOE CALIF HE BELIEVES FIBREBOARD COULD DO MORE TO EXPLOIT ITS ASSETS MANAGEMENT SAYS IT IS DOING FINE WITHOUT MR POHLAD OUR SHAREHOLDERS HAVE DONE WELL CHAIRMAN JOHN ROACH SAID IN A RECENT LETTER TO HOLDERS BUT WE BELIEVE THERE ARE STILL SUBSTANTIAL GAINS TO COME IN LIGHT OF FIBREBOARD'S PROSPECTS AND THE VALUE OF ITS ASSETS HE SAID THE COMPANY PLANS TO EMBARK ON A PROGRAM TO BUY COMPANIES IN RELATED INDUSTRIES AFTER MR POHLAD MADE A 4250ASHARE BID ON MARCH 14 FIBREBOARD SHOT UP TO 37 1/8 FROM 34 1/2 BUT IT FELL AFTER THE COMPANY REJECTED THE OFFER MR POHLAD RAISED HIS BID TO 45 ON APRIL 13 THE COMPANY AGAIN SAID NO THE NEXT STEP BELONGS TO MR POHLAD TRADERS BELIEVE HE MIGHT SIMPLY SELL HIS STOCK AND GIVE UP WHY HAS A DEAL PROVED SO ELUSIVE FOR MR POHLAD THE ANSWER MIGHT BE FOUND IN THE STATUS OF THE LONGSTANDING ASBESTOS LITIGATION THOUGH THE COMPANY'S INSURERS HAVE AGREED TO THE SETTLEMENT THE STATE APPEALS COURT IN SAN FRANCISCO HAS YET TO APPROVE THE DEAL AS LONG AS THERE IS EVEN A TINY CHANCE FOR THE SETTLEMENT TO UNRAVEL IT RAISES UNCERTAINTY FOR THE COMPANY WOULDBE ACQUIRERS AND BANKS THAT MIGHT LEND TO A BUYER THE UNCERTAINTY TRADERS SAY MIGHT EXPLAIN WHY MR POHLAD HASN'T DISCLOSED FINANCING AND WHY NO OTHER BIDDER HAS SURFACED INVESTORS SAY MR POHLAD MADE A BETTER JUDGMENT IN LAST YEAR'S EFFORT TO TAKE OVER PEOPLES WESTCHESTER SAVINGS OF NEW YORK MR POHLAD WAS PART OF A GROUP THAT BOUGHT SOME OF THE STOCK AND BID 30 A SHARE FOR THE REST MANAGEMENT BELIEVED MR POHLAD WAS LESS INTERESTED IN BUYING THE BANK THAN IN PUTTING THE COMPANY IN PLAY WHATEVER HIS MOTIVATION MR POHLAD SCORED A BIG SUCCESS THE COMPANY ULTIMATELY WAS SOLD TO FIRST FIDELITY BANCORP FOR 4390 A SHARE BUT TRADERS OBSERVE THERE ARE PLENTY OF BIDDERS FOR BANKS BIDDERS FOR WOODPRODUCTS COMPANIES PARTICULARLY ONES WITH LEGAL UNCERTAINTIES ARE HARDER TO FIND RICHARD GIBSON CONTRIBUTED TO THIS ARTICLE 9404250079 940425 RUSSIAN FAR EAST DESPITE ITS OBSTACLES APPEALS TO SOME INTERNATIONAL FIRMS BY MARK M NELSON STAFF REPORTER OF THE WALL STREET JOURNAL VLADIVOSTOK RUSSIA AT FIRST GLANCE OLEG POLUMORDVINOV'S VLADIVOSTOK LOOKS LIKE AN ICY VERSION OF HONG KONG CROWDED INTO A ONEROOM HEADQUARTERS AT THE TOP OF A FOURFLIGHT CLIMB HIS THREEPERSON TRADING BUSINESS A SUBSIDIARY OF YEIWA CO OF JAPAN IS BURSTING AT THE SEAMS BETWEEN THE DESKS THE CURRENT INVENTORY ELECTRONIC SPACE HEATERS AND OTHER JAPANESE APPLIANCES IS STACKED TO THE CEILING THROUGH THE WINDOWS THE NOISY STREET IS CHURNING WITH COMMERCE AND URBAN LIFE CHINESE TRADERS CROWD INTO A STEEPLY DESCENDING ALLEY SELLING EVERYTHING FROM SWEATERS TO SWIMWEAR WITH THE SNOWY STREETS CLOGGED WITH JAPANESE CARS COMMUTERS PACK LIKE SARDINES INTO BUSES AND STREETCARS SHIPS AND BOATS OF EVERY SIZE AND SHAPE PLOW PAST ICEBERGS INTO THE BUSTLING HARBOR BELOW WE'VE GOT ASIANS AMERICANS AND AUSTRALIANS SAYS MR POLUMORDVINOV THERE'S A KIND OF TRADING FRENZY HERE WITH JAPAN AND NORTH AMERICA TO THE EAST AND SOUTH KOREA AND CHINA TO THE SOUTHWEST THE RUSSIAN FAR EAST IS SURROUNDED BY SOME OF THE MOST DYNAMIC ECONOMIES IN THE WORLD AND CONVINCED THAT IT SOMEDAY WILL BE ONE OF THE GEMS OF ASIA A DOGGED GROUP OF INTERNATIONAL BUSINESSPEOPLE IS SETTING UP SHOP HERE AND LOOKING FOR DEALS THE REGION IS VAST STRETCHING ALONG 9000 KILOMETERS OF COASTLINE FROM THE SEA OF JAPAN TO THE ARCTIC OCEAN AND COVERING AN AREA ALMOST THREE TIMES THE SIZE OF THE EUROPEAN UNION IN IT BUSINESSPEOPLE DISCOVER A RUSSIA RIDDLED WITH CORRUPTION ORGANIZED CRIME STIFLING BUREAUCRACY AND OBSTACLES TO BUSINESS BUT FOR THE RUGGED AND DETERMINED THE RUSSIAN FAR EAST IS CRAWLING WITH POSSIBILITIES OF COURSE A LOT OF PEOPLE FAIL HERE THAT'S THE WAY IT ALWAYS IS WITH PLACES WHERE A GREAT DEAL OF MONEY IS TO BE MADE SAYS AN EXECUTIVE OF A MAJOR EUROPEAN COMPANY FOREIGN FIRMS ARE UNWILLING TO POUR BIG MONEY INTO THE PLACE BECAUSE OF ITS ORGANIZED CRIME LACK OF MODERN BANKING AND THE POLITICAL UNCERTAINTY IN RUSSIA AS A WHOLE NO RELIABLE INVESTMENT STATISTICS EXIST BUT EXPERTS HERE SAY CHINA HAS BY FAR THE LARGEST NUMBER OF HOLDINGS AND THE US THE LARGEST VOLUME OF MONEY INVESTED JAPAN AND KOREA ARE TRADING INTENSIVELY WHILE LAYING THE GROUNDWORK FOR INVESTMENTS YOU CAN SELL ANYTHING HERE SAYS ALEXANDR V LEVIN A TRADER IN MARUBENI CORP'S VLADIVOSTOK OFFICE THE RUSSIAN FAR EAST OPERATION OF THE BIG JAPANESE TRADING HOUSE HAS AT LEAST DOUBLED ITS REVENUE EVERY YEAR FOR THE PAST FOUR YEARS HE SAYS BUYING RUSSIAN PIG IRON LEAD CONCENTRATE AND RAW MATERIALS FOR JAPAN AND SELLING CONSUMER GOODS FORKLIFTS TRUCKS AND ELECTRONICS TO RUSSIA IT IS VERY DIFFICULT TO GET THINGS DONE HERE TO REALIZE YOUR PROJECTS HE SAYS BUT WHEN YOU SUCCEED WEALTH MULTIPLIES VERY QUICKLY VLADIVOSTOK A RUNDOWN BUT MAJESTIC CITY THAT SPRAWLS ACROSS THE STEEP HILLS ABOVE THE DEEP GOLDEN HORN BAY IS HOME OF RUSSIA'S PACIFIC NAVAL FLEET AND WAS CLOSED TO OUTSIDERS UNTIL 1992 KHABAROVSK IS A MORE MODEST BUT REFINED CITY ON THE BANKS OF THE AMUR RIVER WHICH RUNS ALONG THE BORDER OF RUSSIA AND CHINA BOTH CITIES HAVE ABOUT 700000 INHABITANTS BRIGHT BUT BRUTALLY COLD WINTERS MOSQUITOPLAGUED AND HUMID SUMMERS YOU'VE GOT TO BE TOUGH TO MAKE IT HERE SAYS STEPHEN TAUFEN DIRECTOR OF FINANCE FOR RUSSIAN EXECUTIVE AIR WHICH HAS SET UP A CHARTER AIR SERVICE IN KHABAROVSK EVERYTHING IS STACKED AGAINST DOING BUSINESS A LOT OF PEOPLE CAN'T GET OUT OF HERE FAST ENOUGH BUT OTHERS ARE CONVINCED THAT THIS PART OF RUSSIA WITH ITS RICH STORES OF MINERALS FISH DIAMONDS AND GOLD EVENTUALLY WILL MAKE IT AND THEY SAY THAT CLOSE WORKING RELATIONSHIPS WITH RUSSIAN PARTNERS CAN HELP LEAD TO SUCCESS WE'RE HERE FOR THE LONG HAUL SAYS TJ NORTHCOTT PRESIDENT OF GLOBAL ENVIRONMENTAL SYSTEMS INC OF ANCHORAGE ALASKA WHICH WON A CONTRACT TO UPGRADE THE PUBLIC WATER SYSTEM IN KHABAROVSK I COULD BRING EVERY COMPETITOR I'VE GOT OVER HERE WE COULD ALL FIND WORK AND WE WOULDN'T SEE EACH OTHER FOR 20 YEARS AT THE VLAD MOTOR INN AT LEAST VLADIVOSTOK'S BUSINESS TEMPERATURE ALWAYS SEEMS TO BE RISING ON A RECENT SUNDAY NIGHT TERRY SHANNON MARKETING MANAGER FOR THE RUSSIAN FAR EAST FOR MARS INC IS DINING IN THE TELEVISION ROOM WITH SEVERAL MEMBERS OF HIS NEW 50PERSON SALES FORCE HERE FOR A WEEKEND OF TRAINING LEE CHUNG A TEXTILE EXECUTIVE FROM SEOUL IS IN THE DINING ROOM HAVING CRAB LEGS AND COMPLETING A DEAL WITH HIS NEW RUSSIAN MANAGER STUCK 18 KILOMETERS OUT OF TOWN ON THE GROUNDS OF A FORMER KGB WEEKEND RETREAT THE VLAD PROMOTED MODESTLY AS A CANADIANSTYLE MOTEL IS ITSELF ONE OF THE REGION'S MOST SUCCESSFUL DIRECT INVESTMENTS PETER FOXCROFT SUPERINTENDENT AND COMPTROLLER OF ARCTIC SIBERIA LTD WHICH IS INVESTING ABOUT 10 MILLION IN SIBERIAN OIL PROJECTS SAYS MEMBERS OF HIS GROUP NOTICED THE NEED FOR WESTERNSTYLE ACCOMMODATIONS HERE AND SPENT 26 MILLION TO BRING A PREFABRICATED SIDEOFTHEROADSTYLE MOTEL FROM ALBERTA CANADA AND SET IT UP HERE IN THE WOODS IN ITS FIRST YEAR IT HAS BECOME A POPULAR AND PROFITABLE TRADING POST A PLACE ON THE FRONTIER WHERE GRINGOS FIND COMFORT AND COMPANIONSHIP AS WELL AS CONSULTING SERVICES FROM DELOITTE & TOUCHE ROOM 127 THE VLAD MANAGERS SUCCEED BECAUSE THEY HAVE BEEN THROUGH MANY OF THE SAME PROBLEMS AS THEIR GUESTS THEY SPENT MONTHS NEGOTIATING WITH LOCAL AUTHORITIES TO GET PHONES WATER AND OTHER SERVICES IN SHOPS AND MARKETS THE RUSSIAN FAR EAST IS SURGING TOWARD ASIA AT THE BALYAEV STREET MARKET IN DOWNTOWN VLADIVOSTOK MORE THAN 100 CHINESE TRADERS MOST FROM VILLAGES ALONG THE RUSSIAN BORDER ARE SELLING EVERYTHING FROM SHOES CLOTHES AND ELECTRONIC EQUIPMENT TO PUPPIES AND EXOTIC MEDICINES THE MARKET IS MUCH RICHER AND MORE VARIED THAN SIMILAR CROSSBORDER MARKETS IN CENTRAL EUROPE TRADING POSSIBILITIES HERE HAVE EXPLODED FOR ONE SIMPLE REASON THE END OF SUBSIDIZED TRANSPORT ACROSS SIBERIA FOOD AND CONSUMER GOODS NOW CAN BE BOUGHT MORE CHEAPLY IN ASIA THAN THEY CAN BE SHIPPED ACROSS THE FROZEN TUNDRA MANY LOCAL RUSSIANS HAVE MIXED FEELINGS ABOUT THE INFLUX OF ASIAN GOODS AND ASIAN INFLUENCES IN THEIR TERRITORY INTEGRATING OUR ECONOMY INTO ASIA COULD LEAD TO THE SEPARATION OF THE FAR EAST FROM RUSSIA SAYS A BUSINESS CONSULTANT IN KHABAROVSK NOBODY WANTS THAT GIVEN THE IMPASSE MANY BUSINESSPEOPLE IN THE REGION SAY PROSPECTS FOR THE FAR EAST REGION NOW LARGELY HINGE ON ONE PROJECT PLANS TO DEVELOP OFFSHORE OIL AND GAS FIELDS NEAR SAKHALIN ISLAND JUST NORTH OF JAPAN THE PROJECT WOULD BE BY FAR THE BIGGEST INVESTMENT PLANNED FOR THE REGION ESTIMATED AT AROUND 9 BILLION AND WOULD START PUMPING OIL AND GAS FOR DOMESTIC AND EXPORT MARKETS BY THE TURN OF THE CENTURY IF THE PROJECT PROCEEDS LATER THIS YEAR AS MANY PREDICT IT COULD SPARK A MASSIVE INFLUX OF PEOPLE AND SUPPORTING PROJECTS THAT COULD GIVE THE FAR EAST A NEEDED SHOT IN THE ARM COMPARED WITH THE RUGGED PORT TOWN OF VLADIVOSTOK LIFE IS A BREEZE 800 KILOMETERS TO THE NORTH IN KHABAROVSK A NEW BUSINESS CULTURE SEEMS TO BE TAKING ROOT MORE QUICKLY LESS PLAGUED BY DIVISIVE POLITICS AND CRIME IT'S LIKE OHIO HERE SAYS KATHLEEN MCHUGH A BANKING CONSULTANT AND PEACE CORPS VOLUNTEER WHO IS ADVISING BIZONKAPITAL A NEW PRIVATE COMMERCIAL BANK SET UP IN A WING OF THE MILITARY MUSEUM IN KHABAROVSK THERE'S AN ATTITUDE OF LET'S JUST GET ON WITH IT' THEY JUST IGNORE MOSCOW AND DO THEIR BUSINESS KHABAROVSK HAS A PROGRESSIVE GOVERNOR WHO HAS INSTITUTED A TAXINCENTIVE PLAN FOR FOREIGN INVESTORS IT HAS THE SECONDLARGEST AIRPORT IN RUSSIA RECENTLY RENOVATED AND IS MAKING QUICK PROGRESS TO UPGRADE ITS PHONES AND OTHER INFRASTRUCTURE WE HAVE A VERY ACTIVE POLICY TOWARD FOREIGN INVESTORS SAYS GEORGY PEROV ADVISER ON INTERNATIONAL RELATIONS FOR THE KHABAROVSK TERRITORY WE DON'T WANT ANY ONE COUNTRY TO DOMINATE BUT WE ARE OPEN TO EVERYBODY THE RESULTS OF THIS STRATEGY ARE ALREADY TAKING HOLD KHABAROVSK IS A HOTBED OF COMPETITION AMONG TELECOMMUNICATIONS COMPANIES THAT ARE TRYING TO GET IN ON WHAT WILL BE A MAJOR LONGTERM BUSINESS OF UPGRADING THE TELEPHONE NETWORK VAL TELECOM INTERNATIONAL A USRUSSIAN JOINT VENTURE RECENTLY AGREED TO BUY SWITCHING EQUIPMENT FROM SIEMENS AG AND AT&T CO REGIONAL TELECOMMUNICATIONS OFFICIALS SAY THEY EXPECT SIMILAR CONTRACTS TO FOLLOW IN VLADIVOSTOK FOREIGN BANKS ALSO SEE BUSINESS POTENTIAL IN KHABAROVSK WHILE BOTH US AND EUROPEAN BANKS SUCH AS DEUTSCHE BANK HAVE DEVELOPED CONTACTS WITH SEVERAL LOCAL INSTITUTIONS BANK OF TOKYO IS OMNIPRESENT ACCORDING TO MS MCHUGH THE JAPANESE BANK REGULARLY TAKES GROUPS OF 20 TO 30 YOUNG RUSSIAN MEN TO TOKYO HOUSES THEM IN DORMITORIES FOR SEVERAL MONTHS AND GIVES THEM INTENSIVE TRAINING IN JAPANESESTYLE BANKING THEY GET EXCELLENT TRAINING AND THE BANK OF TOKYO IS DEVELOPING MANY RELATIONSHIPS HERE AS A RESULT SHE SAYS 9404250078 940425 CASTLE ENERGY ADOPTS A POISON PILL' STRATEGY RADNOR PA CASTLE ENERGY CORP ADOPTED A POISON PILL PLAN TO PREVENT ANY UNWELCOME TAKEOVER SAYING ITS LARGEST SHAREHOLDER'S PROBLEMS HAVE DEPRESSED ITS STOCK PRICE AND MADE CASTLE AN ATTRACTIVE TARGET AS A RESULT OF CURRENT CONDITIONS AFFECTING THE COMPANY'S LARGEST SHAREHOLDER METALLGESELLSCHAFT AG AND ITS AFFILIATES THE COMPANY'S STOCK IS TRADED AT A PRICE THE BOARD OF DIRECTORS BELIEVES IS BELOW ITS ACTUAL VALUE THE COMPANY SAID METALLGESELLSCHAFT A GERMAN COMPANY HAS BEEN STRUGGLING SINCE HUGE OILTRADING LOSSES BROUGHT THE METALS AND ENGINEERING GROUP TO THE BRINK OF BANKRUPTCY LAST WINTER AMONG OTHER ITEMS THE STOCKHOLDERRIGHTS PLAN INCLUDES THE DISTRIBUTION OF PREFERREDSTOCK PURCHASE RIGHTS FOR EACH COMMON SHARE OUTSTANDING THE RIGHTS WILL BE EXERCISABLE IF A PERSON OR A GROUP WITHOUT THE PRIOR APPROVAL OF THE BOARD ACQUIRES 15 OR MORE OF THE COMPANY'S COMMON STOCK OR DISCLOSES A TENDER OFFER THAT WOULD CAUSE SUCH A STAKE TO BE HELD METALLGESELLSCHAFT OWNS ABOUT 41 OF CASTLE ENERGY'S COMMON SHARES AND IS EXEMPTED FROM THE 15 TRIGGER AS LONG IS IT DOES NOT INCREASE ITS HOLDINGS TO MORE THAN ABOUT 42 OF THE COMMON STOCK OUTSTANDING OR INDIRECTLY TRANSFERS ITS HOLDINGS TO SOMEONE ELSE CASTLE ENERGY SAID 9404250077 940425 WHO'S NEWS BOISE CASCADE NAMES HARAD CHIEF EXECUTIVE BOISE IDAHO BOISE CASCADE CORP NAMED GEORGE J HARAD 49 YEARS OLD CHIEF EXECUTIVE OFFICER MR HARAD WHO WAS THE PAPER AND FOREST PRODUCTS COMPANY'S PRESIDENT AND CHIEF OPERATING OFFICER SUCCEEDS JOHN B FERY 64 WHO IS RETIRING BUT WILL REMAIN CHAIRMAN BOISE HAD INDICATED FOR SOME TIME THAT A SUCCESSION WAS IN THE WORKS AND THAT MR HARAD PRESIDENT SINCE 1991 WAS BEING GROOMED FOR THE TOP JOB ANALYSTS SAID MR FERY JOINED THE COMPANY IN 1957 THE YEAR OF ITS FOUNDING AND HAS BEEN CHIEF EXECUTIVE FOR 22 YEARS THE TRANSITION WILL TAKE PLACE JULY 29 A SMOOTH TRANSITION IS EXPECTED SAID ANALYST STEVEN DIETRICH OF JENSEN SECURITIES CO BECAUSE HARAD HAS A PRETTY GOOD HANDLE ON WHAT HAS TO BE DONE AT BOISE MR HARAD WHO BECOMES BOISE'S THIRD CEO SINCE ITS FOUNDING WILL INHERIT SEVERAL BIG PROBLEMS MR DIETRICH SAYS FOR ONE THE COMPANY'S BOOKS ARE HEAVY ON DEBT FOR ANOTHER IT HAS HUGE CAPACITY TO PRODUCE WHITE PAPER AT A TIME WHEN WHITEPAPER PRICES ARE CHRONICALLY DEPRESSED IN THE FIRST QUARTER BOISE REPORTED A NET LOSS OF 376 MILLION OR 135 A SHARE ON SALES OF 101 BILLION BOISE SAID A SUCCESSOR HASN'T BEEN NAMED TO MR HARAD'S POSTS OF PRESIDENT AND CHIEF OPERATING OFFICER AND THAT MR HARAD MAY RETAIN THE TITLES AFTER HE BECOMES CEO 9404250076 940425 BUSINESS BRIEF ROBERT HALF INTERNATIONAL INC PERSONNEL FIRM'S PROFIT SALES HIT RECORD IN FIRST QUARTER ROBERT HALF INTERNATIONAL INC BENEFITING FROM A SURGE IN DEMAND FOR ITS PERSONNEL SERVICES SAID FIRSTQUARTER NET INCOME MORE THAN DOUBLED TO A HIGH ON RECORD REVENUE THE MENLO PARK CALIF PROVIDER OF TEMPORARY EMPLOYEE AND OTHER PERSONNEL SERVICES SAID NET WAS 56 MILLION OR 40 CENTS A SHARE COMPARED WITH 24 MILLION OR 20 CENTS A SHARE IN THE YEARAGO QUARTER REVENUE ROSE 44 TO 999 MILLION FROM 696 MILLION THE COMPANY SAID RESULTS REFLECT STRONG DEMAND FOR ITS SPECIALIZED ACCOUNTINGPERSONNEL SERVICES AS WELL AS EXPENSE CONTAINMENT AND LOWER INTEREST COSTS 9404250075 940425 PLAN IS TO HELP STATES PAY ILLEGAL ALIEN INMATE COSTS WASHINGTON WITH AN EYE ON CALIFORNIA POLITICS PRESIDENT CLINTON PROPOSED A PROGRAM TO HELP STATES PAY FOR JAILING ILLEGAL IMMIGRANTS CONVICTED OF FELONIES THE WHITE HOUSE ASKED CONGRESS TO APPROPRIATE 350 MILLION FOR THE PROGRAM FOR THE FISCAL YEAR STARTING OCT 1 SUCH A PROGRAM HAS BEEN AUTHORIZED BY CONGRESS SINCE 1986 BUT HASN'T BEEN FUNDED IT IS A WELCOME STEP IF NOT AS LARGE A ONE AS IS REQUIRED SAID CALIFORNIA GOV PETE WILSON A REPUBLICAN HE ESTIMATED THE STATE SPENDS 400 MILLION A YEAR TO JAIL ILLEGAL IMMIGRANTS CALIFORNIA OFFICIALS SAID THEY STILL PLAN TO GO COURT THIS WEEK TO FORCE THE FEDERAL GOVERNMENT TO REIMBURSE THE STATE FOR BILLIONS OF DOLLARS OF COSTS THE STATE SAYS IT INCURS TO PROVIDE FEDERALLY REQUIRED SERVICES TO ILLEGAL IMMIGRANTS MR CLINTON SAID THE FEDERAL GOVERNMENT'S PRIMARY RESPONSIBILITY IS TO TOUGHEN ENFORCEMENT AT THE BORDER AND SAID HE IS TRYING TO DO THAT BUT HE SAID WHEN PEOPLE ENTER THIS COUNTRY ILLEGALLY AND COMMIT CRIMES WHILE THEY ARE HERE IT IS NOT FAIR TO ASK THE STATES TO BEAR THE ENTIRE COST OF THEIR IMPRISONMENT THE WHITE HOUSE PROPOSED TO MAKE UP SOME OF THE ADDED SPENDING BY FUNDING THE FEDERAL COMMUNICATIONS COMMISSION SOLELY BY FEES PART OF THE AGENCY'S COSTS CURRENTLY ARE FUNDED BY TAXPAYERS 9404250074 940425 LETTERS TO THE EDITOR WE DEFEND BOSNIA WITH TALK AND EXCUSES IN RESPONSE TO SEN JOHN MCCAIN'S APRIL 15 EDITORIALPAGE PIECE IN BOSNIA ANOTHER MISTAKE I RESPECT SEN MCCAIN'S EXPERIENCE AS A NAVY AVIATOR AS WELL AS HIS CONCERN ABOUT NATO BOMBINGS OF SERB POSITIONS HOWEVER IF THESE ACTIONS HAD TAKEN PLACE WITH CONVICTION AT THE ONSET OF THE CONFLICT THERE WOULD BE LITTLE NEED FOR HIS CURRENT TREPIDATION ONCE AGAIN POLITICIANS ON BOTH SIDES OF THE ATLANTIC HAVE TALKED THEMSELVES INTO A TOO LITTLE TOO LATE SCENARIO AMERICA'S POLITICAL WILL IS CRIPPLED BY MEMORIES OF A PAST WAR THAT IS STILL USED AS AN EXCUSE FOR CURRENT INDECISIVENESS AND FAILURE PERHAPS THAT SAME LACK OF RESOLVE AND SEARCH FOR EXCUSES WAS MORE TO BLAME FOR THE MISTAKES IN VIETNAM THAN WE CARE TO REMEMBER 9404250073 940425 BROWNINGFERRIS WINS CLEARANCE TO EXPAND DUMP IN CALIFORNIA LOS ANGELES BROWNINGFERRIS INDUSTRIES INC RECEIVED LEGAL CLEARANCE TO REOPEN A HUGE GARBAGE DUMP IN THE SAN FERNANDO VALLEY A MOVE THAT WILL INCREASE COMPETITION AMONG TRASH HAULERS IN THE LOS ANGELES AREA THE COMPANY BASED IN HOUSTON AND THE NATION'S SECONDLARGEST HAULER SAID A STATE COURT JUDGE LIFTED A STAY THAT BARRING A LAST MINUTE CHANGE WILL ALLOW CONSTRUCTION TO BEGIN AS SOON AS THIS WEEK ON AN EXPANSION OF THE SUNSHINE CANYON DUMP THE DUMP ON LAND THAT STRADDLES THE BORDER BETWEEN THE CITY AND COUNTY OF LOS ANGELES HAS BEEN CLOSED SINCE SEPTEMBER 1991 THE CITY AND A GROUP OF LOCAL RESIDENTS SUED OVER THE DUMP'S OPERATIONS BROWNINGFERRIS NOW WILL BE ABLE TO EXPAND THE DUMP ON COUNTY LAND ONLY TO TAKE ANOTHER 169 MILLION TONS UNDER ITS PERMIT HAD BROWNINGFERRIS BEEN ALLOWED TO ALSO EXPAND ONTO PROPERTY IN THE CITY THE SITE COULD TAKE MUCH MORE VOLUME THE COUNTY'S SANITATION DISTRICTS NO 1 HAULER WMX TECHNOLOGIES INC AND OTHERS OPERATE DUMPS IN THE AREA WHERE PRICES ARE RELATIVELY LOW AND BECAUSE OF RECESSION AND RECYCLING DISPOSAL VOLUMES ARE DOWN FROM PRIOR YEARS THE PERMIT FOR SUNSHINE CANYON WOULD ALLOW IT TO TAKE UP TO 6000 TONS A DAY SIX DAYS A WEEK A SPOKESMAN WOULDN'T SAY WHAT PRICE THE DUMP WILL CHARGE EXCEPT THAT IT WOULD BE WITHIN THE RANGE OF ABOUT 17 TO 30 A TON CHARGED BY OTHERS IN LOS ANGELES COUNTY THE EXPANSION WILL COST 28 MILLION TO GET IT UP AND RUNNING THE SPOKESMAN SAID 9404250072 940425 BUSINESS BRIEF MILLIPORE CORP PROCEEDS FROM SALE OF UNIT MAY BE USED FOR BUYBACK MILLIPORE CORP SAID ITS DIRECTORS APPROVED THE USE OF 300 MILLION IN EXPECTED PROCEEDS FROM THE SALE OF ITS WATERS CHROMATOGRAPHY DIVISION FOR THE REPURCHASE OF COMPANY STOCK MILLIPORE WHICH HAS 28 MILLION SHARES OUTSTANDING COULD REPURCHASE ABOUT SIX MILLION SHARES AT THE CURRENT PRICE OF 45 EACH A SPOKESMAN SAID THE BUYBACK WON'T TAKE PLACE UNTIL AFTER THE SALE IS CLOSED AT THE END OF JUNE MILLIPORE BASED IN BEDFORD MASS HAS AGREED TO SELL THE ASSETS OF WATERS FOR 360 MILLION TO WATERS HOLDINGS INC A NEW COMPANY MILLIPORE SAID IT'S SELLING THE UNIT TO CONCENTRATE ON ITS MORE PROFITABLE FILTERS BUSINESS MILLIPORE SAID IT HASN'T DECIDED THE METHOD OF THE REPURCHASE 9404250070 940425 TECHNOLOGY SINGLE BIGGEST INVESTOR IN BIOTECHNOLOGY GENERAL REDUCES STAKE ISELIN NJ BIOTECHNOLOGY GENERAL CORP SAID ITS SINGLE LARGEST INVESTOR SOLD NEARLY 50 OF HIS STAKE IN THE COMPANY ON FRIDAY TO SEVERAL INSTITUTIONAL INVESTORS FOR ABOUT 107 MILLION THE COMPANY WHICH MAKES GENETICALLY ENGINEERED AND OTHER HEALTHCARE PRODUCTS SAID DAVID BLECH REDUCED HIS STAKE IN THE COMPANY TO 23 MILLION SHARES OR ABOUT 62 OF THE SHARES OUTSTANDING FROM 68 MILLION SHARES SELLING HIS SHARES FOR 2375 A SHARE MR BLECH ALSO OWNS ABOUT 18 MILLION BIOTECHNOLOGY GENERAL WARRANTS EXERCISABLE AT PRICES RANGING FROM 492 TO 1053 A SHARE HE REMAINS THE SINGLE LARGEST INVESTOR MR BLECH COULDN'T BE REACHED FOR COMMENT BUT SIM FASS PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID HE KNOWS THE SALE HAS NOTHING TO DO WITH THE COMPANY HE SAID HE THINKS MR BLECH CONTINUES TO BE VERY MUCH A BELIEVER IN THE COMPANY HE ADDED THAT I BELIEVE THE TRANSACTION RELATES TO A PERSONAL SITUATION AND NOT TO THE COMPANY THE SALES WERE ANNOUNCED AFTER THE MARKETS CLOSED ON FRIDAY IN RECENT WEEKS BIOTECHNOLOGY GENERAL'S STOCK HAS LOST ABOUT 50 OF ITS VALUE ON FRIDAY THE SHARES CLOSED AT 3125 UP 25 CENTS IN NASDAQ STOCK MARKET TRADING A SPOKESMAN FOR THE COMPANY SAID THE DECLINE SEEMS TO BE LINKED TO A GENERAL DOWNWARD TREND FOR BIOTECHNOLOGY INDUSTRY STOCKS 9404250069 940425 MARKETING & MEDIA IWERKS TO BUY OMNI UNDER REVISED TERMS FOLLOWING STOCKS' FALL BURBANK CALIF IWERKS ENTERTAINMENT INC AND OMNI FILMS INTERNATIONAL INC SAID THEY WILL PROCEED UNDER REVISED TERMS WITH IWERKS'S PLANNED STOCK AND CASH PURCHASE OF OMNI FILMS AFTER A TUMBLE OF BOTH COMPANIES' STOCK PRICES AT CURRENT STOCK PRICES THE NEW TERMS HAVE AN INDICATED VALUE OF ABOUT 209 MILLION SHARPLY LOWER THAN THE 34 MILLION INDICATED VALUE OF THE PROPOSED PURCHASE WHEN IT WAS ANNOUNCED IN LATE FEBRUARY THE COMPANIES SAID IWERKS AGREED TO INCREASE THE TOTAL STOCK PORTION OF THE TRANSACTION BY 175000 SHARES TO 1488000 SHARES THE CASH PORTION OF THE TRANSACTION WILL REMAIN A TOTAL OF 45 MILLION IWERKS CURRENTLY HAS ABOUT 89 MILLION SHARES OUTSTANDING OMNI SHAREHOLDERS NOW WILL RECEIVE 142 IN CASH AND 0424303 SHARES OF NEWLY ISSUED IWERKS STOCK FOR EACH SHARE OF OMNI COMMON STOCK THE COMPANIES SAID HOLDERS OF ABOUT 42 OF OMNI'S STOCK OUTSTANDING HAVE GIVEN IWERKS A PROXY TO VOTE IN FAVOR OF THE ACQUISITION WHICH REQUIRES APPROVAL OF A MAJORITY OF STOCKHOLDERS IN NASDAQ STOCK MARKET TRADING FRIDAY IWERKS STOCK FELL 50 CENTS TO 11 SHARPLY LOWER THAN THE 2425ASHARE PRICE WHEN THE INITIAL ACQUISITION ANNOUNCEMENT WAS MADE ALSO ON NASDAQ OMNI STOCK ROSE 35 OR 1625 TO 625 ITS STOCK CLOSED AT 10125 A SHARE ON FEB 22 WHEN THE INITIAL ANNOUNCEMENT WAS MADE IWERKS BASED IN BURBANK CALIF AND OMNI BASED IN SARASOTA FLA DESIGN HIGHTECH ENTERTAINMENT RIDES FOR THEME PARKS AND SHOPPING MALLS 9404250068 940425 TECHNOLOGY & ENVIRONMENT APPLE IS SEEN LAUNCHING LINE OF SERVERS MOVE IS FIRM'S BID TO BOOST PRESENCE IN PC MARKET FOR CORPORATE AMERICA BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL APPLE COMPUTER INC PLANS TO LAUNCH A POWERFUL LINE OF COMPUTER SERVERS AS A CORNERSTONE OF THE COMPANY'S CAMPAIGN TO SIGNIFICANTLY INCREASE THE MACINTOSH'S WEAK PRESENCE IN THE CORPORATE WORLD THE CUPERTINO CALIF COMPUTER MAKER IS TO DISCUSS TODAY ITS STRATEGY TO LAUNCH A FAMILY OF SERVERS BASED ON THE NEW MICROPROCESSOR CHIP POWERPC WHICH CARRIES MUCH HIGHER PERFORMANCE THAN THE OLDER LINE OF CHIPS USED BY THE COMPANY ACCORDING TO INDUSTRY ANALYSTS FAMILIAR WITH THE PLAN SINCE THE NEW SERVERS AREN'T EXPECTED TO BE SHIPPED UNTIL LATE THIS YEAR ANALYSTS SAY PRICES AND PRODUCT DETAILS HAVEN'T BEEN DISCLOSED NOVELL INC A BIG SOFTWARE MAKER BASED IN PROVO UTAH WILL ALSO ANNOUNCE THAT IT IS DEVELOPING A NEW VERSION OF ITS INDUSTRYLEADING NETWARE NETWORKING SOFTWARE THAT LINKS PCS FOR THE POWERPC LINE OF APPLE COMPUTERS ANALYSTS SAID A SERVER IS ESSENTIALLY A SOUPEDUP COMPUTER THAT CONTAINS MASSIVE FILES OF DATA SUCH AS COMPENDIOUS NEWSPAPER ARTICLES THAT CAN BE ACCESSED BY USERS OF PERSONAL COMPUTERS HOOKED INTO A FILESHARING NETWORK APPLE'S CURRENT LINE OF SERVERS ARE ONLY POWERFUL ENOUGH TO CONNECT TO ABOUT 200 MACINTOSH PCS THE POWERPC SERVERS WILL BE ABLE TO CONNECT THOUSANDS OF THEM ANALYSTS SAID IT THE SERVERS HELPS TO STRENGTHEN THEIR POSITION IN THE NETWORKING MARKET MAKING THEM MORE ATTRACTIVE TO CORPORATE AMERICA SAID JOHN J GIRTON ANALYST AT VAN KASPER & CO OFFICIALS AT BOTH APPLE AND NOVELL DECLINED TO COMMENT SINCE THE POWERPCBASED SERVERS WILL BE CONNECTING APPLE'S NEW LINE OF POWER MACINTOSHES WHICH ARE ALSO PROPELLED BY POWERPC CHIPS APPLE AND NOVELL WILL JOINTLY DEVELOP THE NEW VERSION OF NETWARE TO RUN ON POWERPC WITH FEATURES INCLUDING ENHANCED SECURITY AND RELIABILITY ANALYSTS SAID THE SERVER STRATEGY IS CONSIDERED PIVOTAL TO APPLE'S QUEST TO BOOST A PC MARKET SHARE THAT HAS BEEN STUCK AT ABOUT 11 WORLDWIDE THE COMPANY ALREADY HAS A STRONG PRESENCE IN HOMES AND SMALLTOMIDSIZE BUSINESSES BUT HAS FAILED TO MAKE SERIOUS INROADS INTO THE LUCRATIVE MARKET FOR BIG CORPORATE ACCOUNTS AGAINST COMPETITORS SUCH AS COMPAQ COMPUTER CORP AND INTERNATIONAL BUSINESS MACHINES CORP WHOSE PCS ARE POWERED BY RIVAL INTEL CORP CHIPS SINCE THE CORPORATE MARKET STILL REPRESENTS THE BULK OF REVENUE AND PROFITS FOR THE PC INDUSTRY APPLE HAS TARGETED THIS AS ITS BEST CHANCE OF GAINING GROUND ON RIVALS IT'S CRITICAL FOR APPLE'S SURVIVAL SAID TIM BAJARIN AN INDUSTRY CONSULTANT IN SAN JOSE CALIF ONE REASON FOR THE WEAKER SHOWING IN THE CORPORATE MARKET IS THAT SERVERS FROM SOME COMPETITORS SUCH AS COMPAQ ARE MORE POWERFUL THAN THOSE OF APPLE WHICH ARE BASED ON MOTOROLA INC 68000 SERIES CHIPS THAT LAG BEHIND INTEL IN PERFORMANCE MR BAJARIN SAID CONSEQUENTLY HE SAID CORPORATIONS NEEDING SERVERS TO HOOK UP MULTITUDES OF PCS HAVE GIVEN THOSE INTELBASED PC MAKERS THEIR BUSINESS APPLE HAS BEEN SLOW TO RESPOND BECAUSE THE POWER OF ITS SERVERS HAS BEEN TOO LOW MR BAJARIN SAID COMPETITORS MEANWHILE ARE NOT STANDING STILL AST RESEARCH INC FOR INSTANCE RECENTLY ANNOUNCED A NEW LINE OF SERVERS POWERED BY INTEL'S PENTIUM CHIP WHICH COMPARES ON OVERALL PERFORMANCE WITH CURRENT VERSIONS OF POWERPC AS INTEL BEEFS UP ITS CHIP LINE WITH EVEN MORE POWERFUL VERSIONS PLANNED FUTURE VERSIONS OF POWERPC DEVELOPED BY APPLE IBM AND MOTOROLA ARE EXPECTED TO GAIN IN POWER TOO 9404250067 940425 BUSINESS BRIEF CASINO MAGIC CORP WORK FORCE IS CUT BY 300 AT FACILITIES IN MISSISSIPPI CASINO MAGIC CORP SAID IT ELIMINATED 300 OF THE 2500 POSITIONS AT ITS TWO GAMING FACILITIES IN MISSISSIPPI THE CUTBACK WAS PROMPTED BY THE BAY ST LOUIS MISSBASED CASINO OPERATOR'S TERMINATION LAST FALL OF A LEASE FOR A LARGE GAMING BOAT IT OPERATED ACCORDING TO DUAL COOPER CHIEF OPERATING OFFICER UNTIL FRIDAY CASINO MAGIC HADN'T REDUCED ITS WORK FORCE TO ACCOUNT FOR THE CHANGE MR COOPER SAID IN ADDITION TO THE TWO MISSISSIPPI FACILITIES CASINO MAGIC OPERATES A CASINO IN DEADWOOD SD AND PLANS TO OPEN A FOURTH IN NORTH DAKOTA 9404250066 940425 TEAMSTERS COMPANIES CONTINUE IN MEDIATION WASHINGTON TEAMSTERS REPRESENTATIVES AND TRUCKING COMPANIES CONTINUED TALKS YESTERDAY WITH A FEDERAL MEDIATOR IN AN EFFORT TO END THE NATIONWIDE TRUCKING STRIKE THAT HAS INTERRUPTED THE FLOW OF GOODS ACROSS MUCH OF THE COUNTRY SO FAR THE TALKS HAVE BEEN DESCRIBED AS CONSTRUCTIVE BY THE TRUCKING COMPANIES AND TOO EARLY TO TELL BY STRIKERS' REPRESENTATIVES CATHERINE KALINIAK SPOKESWOMAN FOR TRUCKING MANAGEMENT INC WHICH REPRESENTS THE TRUCKING COMPANIES SAID THE GAPS ARE STILL WIDE BETWEEN BOTH PARTIES BERNIE MULLIGAN SPOKESMAN FOR THE TEAMSTERS SAID THAT ON SATURDAY MOST OF THE TIME WAS SPENT WITH EACH SIDE SEPARATELY BRIEFING THE FEDERAL MEDIATOR ON THE KEY ISSUES AND STICKING POINTS THE DISCUSSIONS WITH THE MEDIATOR BEGAN SATURDAY MORNING AFTER LABOR SECRETARY ROBERT REICH AND TRANSPORTATION SECRETARY FEDERICO PENA SENT A LETTER FRIDAY TO BOTH SIDES ASKING THEM TO ACCEPT MEDIATION THE TRUCKERS WENT ON STRIKE NEARLY THREE WEEKS AGO OVER DISAGREEMENTS ABOUT THE USE OF RAILROADS AND TEMPORARY WORKERS FOR SHIPPING GOODS MR MULLIGAN SAID THE TALKS MOST PROBABLY WOULD CONTINUE TODAY 9404250065 940425 GINGRICH OPPOSES TERMS OF NEW WORLD TRADE PACT WASHINGTON THE NO 2 REPUBLICAN IN THE HOUSE NEWT GINGRICH SAID HE IS STRONGLY INCLINED TO OPPOSE THE WORLDTRADE PACT THAT THE CLINTON ADMINISTRATION NEGOTIATED BECAUSE IT WOULD CREATE A THIRD WORLDDOMINATED DICTATORSHIPDOMINATED SYSTEM TO SETTLE TRADE DISPUTES ON NBC NEWS' MEET THE PRESS YESTERDAY MR GINGRICH SAID I'M FOR WORLD TRADE BUT I'M AGAINST WORLD GOVERNMENT IN PARTICULAR HE OBJECTS TO A PROVISION IN THE GENERAL AGREEMENT ON TARIFFS AND TRADE THAT WOULD CREATE A WORLD TRADE ORGANIZATION UNDER THE PACT THE US WOULD AGREE THAT THE NEW ORGANIZATION'S PANELS OF EXPERTS COULD DECLARE US TRADE PRACTICES IMPROPER WHICH WOULD ALLOW OTHER COUNTRIES TO IMPOSE SANCTIONS THE CURRENT PACT ALLOWS ANY GATT MEMBER TO VETO ANY ADVERSE DECISION ON THE AIR MR GINGRICH SAID THERE WAS A VERY REAL CHANCE THAT HE WOULD VOTE AGAINST GATT AFTERWARD THE GEORGIA REPUBLICAN SAID HE WAS LEANING TOWARD REJECTING THE GATT PACT AND SENDING NEGOTIATORS BACK TO THE TABLE MR GINGRICH WOULD BE THE FIRST HOUSE LEADER TO OPPOSE THE AGREEMENT SEN JOHN DANFORTH R MO OPPOSES THE PACT FOR DIFFERENT REASONS 9404250064 940425 BUSINESS BRIEF HOVNANIAN ENTERPRISES INC FISCAL FOURTHQUARTER NET ROSE 37 FOR HOME BUILDER HOVNANIAN ENTERPRISES INC RED BANK NJ SAID FISCAL FOURTHQUARTER NET INCOME ROSE 37 ON GROWTH IN REVENUE AND OVERALL STRENGTH IN THE HOUSING MARKET THE COMPANY WHICH DESIGNS CONSTRUCTS AND MARKETS SINGLEFAMILY HOMES TOWNHOMES AND CONDOMINIUMS IN PLANNED RESIDENTIAL COMMUNITIES SAID NET IN THE QUARTER ENDED FEB 28 ROSE TO 114 MILLION OR 50 CENTS A SHARE FROM 83 MILLION OR 36 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 39 TO 2577 MILLION FROM 185 MILLION HOVNANIAN SAID DESPITE FIERCE WEATHER THAT HALTED CONSTRUCTION ACTIVITY IN ITS CORE NORTHEAST REGION IT STILL ACHIEVED RECORD REVENUE NEWHOME DELIVERIES AND CONTRACT BACKLOGS IT SAID IT WAS ABLE TO REACH THE PROFIT FORECASTS AND EARNINGS GROWTH IS CONTINUING INTO FISCAL 1995 FOR THE YEAR NET ROSE 90 TO 186 MILLION OR 82 CENTS A SHARE FROM 98 MILLION OR 43 CENTS A SHARE REVENUE ROSE 37 TO 587 MILLION FROM 4293 MILLION 9404250063 940425 ATHLETICSHOE MAKER SETTLES WITH FTC OVER '91 ACCORD WASHINGTON A CALIFORNIA SHOE MANUFACTURER AGREED TO SETTLE FEDERAL TRADE COMMISSION CHARGES THAT IT VIOLATED THE TERMS OF A 1991 FALSEADVERTISING SETTLEMENT WITH THE AGENCY UNDER THE PROPOSED AGREEMENT ASICS TIGER CORP WHICH MAKES ATHLETIC SHOES WILL PAY A 250000 PENALTY AND BE PROHIBITED FROM VIOLATING THE ORIGINAL ORDER THE 1991 FTC CASE PROHIBITED THE COMPANY FROM CLAIMING THAT A CUSHION USED IN ITS ATHLETIC SHOES PROTECTS WEARERS FROM HARD IMPACT WHILE PLAYING SUCH SPORTS AS BASKETBALL OR VOLLEYBALL THE COMMISSION SAID THE CLAIM IS BASELESS THE CURRENT CONSENT ORDER PREVENTS THE COMPANY FROM MAKING ANY INJURYREDUCTION OR PERFORMANCE CLAIMS FOR ITS SHOES UNLESS IT HAS RELIABLE EVIDENCE TO PROVE THEM THE SETTLEMENT PERMITS ASICS TO USE ITS CURRENT INVENTORY WHICH INCLUDES HANG TAGS AND SHOEBOXES PRINTED BEFORE THE ORDER TOOK EFFECT UNTIL MAY 15 THE COMPANY IS BASED IN FOUNTAIN VALLEY CALIF A CONSENT ORDER IS FOR SETTLEMENT PURPOSES ONLY AND DOESN'T CONSTITUTE ADMISSION OF A LAW VIOLATION THE PROPOSED SETTLEMENT WAS FILED BY THE JUSTICE DEPARTMENT WITH THE US DISTRICT COURT HERE AND WILL BECOME FINAL WHEN SIGNED BY THE JUDGE 9404250062 940425 INTERNATIONAL CHINA RELEASES DISSIDENT AMID TRADESTATUS DEBATE BEIJING CHINA'S RELEASE OF ONE OF ITS MOST FAMOUS DISSIDENTS SUGGESTS THAT IT IS WILLING TO GO SOME WAY TO SECURE RENEWAL OF ITS MOST FAVORED NATION TRADE STATUS FROM THE US BUT A CONTINUING CRACKDOWN ON ACTIVISM SHOWS BEIJING IS ALSO LIKELY TO KEEP A TIGHT LID ON DISSENT WANG JUNTAO WHO WAS SENTENCED TO 13 YEARS' IMPRISONMENT FOR HIS ROLE IN THE 1989 DEMOCRACY PROTESTS ARRIVED IN NEW YORK ON SATURDAY AFTER BEING FREED ON MEDICAL PAROLE MR WANG 35 SUFFERS FROM HEPATITIS AND HEART TROUBLE HIS RELEASE COMES JUST WEEKS BEFORE WASHINGTON MUST DECIDE WHETHER TO EXTEND CHINA'S MFN STATUS THE US HAS LINKED MFN RENEWAL TO DEMANDS THAT CHINA IMPROVE ITS HUMAN RIGHTS BUT NOW WASHINGTON FACES A DILEMMA IT IS EAGER TO CONTINUE MFN TO PROTECT ITS OWN ECONOMIC INTERESTS THERE BUT IT NEEDS CHINA'S COOPERATION UNTIL THE WEEKEND IT WASN'T CLEAR IT WOULD GET ANY CHINESE LEADERS ARE KEEPING TIGHT CONTROLS ON DISSENT APPARENTLY BECAUSE THEY ARE WORRIED ABOUT SURGING INFLATION SWELLING POPULAR DISCONTENT AND GROWING DISSIDENT ACTIVISM IN WHAT COULD BE ANOTHER STEP TOWARD MEETING US DEMANDS ON HUMANRIGHTS IMPROVEMENTS THE OFFICIAL XINHUA NEWS AGENCY SAID SATURDAY THAT CHINA HAD REACHED SOME UNDERSTANDINGS WITH THE INTERNATIONAL COMMITTEE OF THE RED CROSS OVER ITS REQUEST TO VISIT CHINESE PRISONS THE AGENCY DIDN'T ELABORATE 9404250061 940425 HOPE FOR TOMORROW P&G AIMS TO SALVAGE SOAP OPERAS BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL ONCE UPON A TIME THE BEST WAY TO SELL SOAP WAS BETWEEN THE SOBS AND SIGHS OF AN AFTERNOON SOAP OPERA NOW PROCTER & GAMBLE CO THE ONLY CONSUMERPRODUCTS COMPANY PRODUCING SOAP OPERAS IS THE ONE CRYING FORMER FANS ARE INCREASINGLY PLUGGED INTO TITILLATING TALK SHOWS AND VARIED CABLE FARE THE COMPANY'S THREE SOAPS ANOTHER WORLD AS THE WORLD TURNS AND GUIDING LIGHT AREN'T SPICY ENOUGH FOR MANY CURRENT VIEWERS P&G ONCE ADVERTISED ONLY ON ITS OWN SOAPS BUT NOW PITCHES BRANDS ON RIVAL SHOWS P&G PIONEERED SOAPS TO PEDDLE ITS BRANDS ON THE RADIO 62 YEARS AGO WITH THE PUDDLE FAMILY AND MA PERKINS IT TOOK THE CONCEPT TO TELEVISION IN 1950 WITH THE FIRST HUNDRED YEARS WHICH LASTED ONLY NINE MONTHS AND AGAIN IN 1951 WITH THE MORE DURABLE SEARCH FOR TOMORROW IVORY TIDE AND OXYDOL AND NEARLY EVERY OTHER HOUSEHOLD PRODUCT MADE BY P&G INVADED AMERICA'S FAMILY ROOMS THROUGHOUT THE AFTERNOON AS VIEWERS STAYED TUNED TO AN EVIL SISTER SEDUCING A BROTHERINLAW AT ONE TIME THE COMPANY PRODUCED SEVEN DAYTIME TV SERIALS TODAY P&G IS TRYING TO SALVAGE SOAPS AS A VIABLE MARKETING TOOL BY SHUFFLING PRODUCTION MANAGEMENT AND ADDING YOUNGER ACTORS AND STEAMY SEX SCENES TO APPEAL TO TEENAGERS AND COLLEGE STUDENTS IF THAT DOESN'T WORK MAYBE SOAPOPERA FASHION WILL THE COMPANY HIRED DMB&B WORLDWIDE COMMUNICATIONS INC TO LICENSE THE NAMES AND LOGOS OF ITS SOAPS TO JEWELRY CLOTHING AND FRAGRANCE MAKERS MAYBE A LINE OF AS THE WORLD TURNS HANDBAGS WILL ATTRACT NEW WATCHERS P&G HOPES AND MAYBE NOT AFTER ALL MOST VIEWERS ARE CLOSET FANS RELUCTANT TO FLAUNT THEIR FONDNESS FOR SOAPS ON HATS AND JACKETS IT'S NOT A POINT OF PRIDE THAT YOU WATCH A SOAP OPERA SAYS MARKETRESEARCH CONSULTANT JUDITH LANGER I SENSE A FEELING OF DESPERATION ON THE PART OF TELEVISION SHOWS IN GENERAL TO PROMOTE THEIR NAMES TO GET PEOPLE TO WATCH BUT THESE ARE DESPERATE TIMES FOR THE SOAPOPERA INDUSTRY MORE SOAPS HAVE GONE OFF THE AIR IN RECENT YEARS THAN HAVE BEEN REPLACED BY NEW ONES SAYS SOCIOLOGIST LEE HARRINGTON OF MIAMI UNIVERSITY OF OHIO P&G'S CASUALTIES INCLUDE SEARCH FOR TOMORROW AND THE EDGE OF NIGHT MURIEL GOLDSMAN CANTOR A SOCIOLOGIST AND SOAPOPERA EXPERT BELIEVES SOAPS MIGHT SOMEDAY DIE OUT ALTOGETHER AS VIEWERS SWITCH TO THE REALLIFE DRAMAS OFFERED BY THE TALK SHOWS AS AWFUL AS THEY ARE MS CANTOR SAYS THE TALK SHOWS ARE ADDICTIVE TOO THEY'RE SO SENSATIONAL THEY MOVE SO MUCH QUICKER THAN SOAPS AND YOU FEEL YOU'RE GETTING AN INSIGHT INTO OTHER PEOPLE'S LIVES SOAPS ONCE HAD A CAPTIVE AUDIENCE HOMEBOUND WOMEN WITH ONE EYE ON THE KIDS AND ONE ON THE TV IT WAS EASY TO GET HOOKED ON TALES OF INTERTWINED FAMILIES GLAMOROUS COUPLES ENGAGING IN PROLONGED MATING RITUALS AND CHARACTERS BELIEVED DEAD MAKING DRAMATIC REAPPEARANCES MANY WOMEN WERE BORED SAYS MS CANTOR AND THEY EMBRACED THE VICARIOUS EXCITEMENT OF THE SOAPS MARKETERS BOMBARDED THESE WOMEN WITH PLUGS FOR DIAPERS DISH SOAP AND DETERGENT BUT MANY WOMEN ARE WORKING FAR FROM THEIR TV SETS DURING THE DAY COSTING SOAPS MANY VIEWERS THE VCR HAS DONE EVEN MORE DEVASTATION TO THE INDUSTRY WHILE MANY WOMEN STILL WATCH SOAPS THEY USE VCRS TO TAPE THEM AND USE THE SAME TECHNOLOGY TO FASTFORWARD ADS IN PURSUIT OF YOUNG VIEWERS TO REPLACE THE DEPARTED THE SOAPS HAVE BEEN CREATING MORE YOUTHORIENTED PLOTS SOME SHOWS HAVE SPECIAL SUMMERTIME STORY LINES GEARED TO KIDS ON VACATION WHO WANT TO WATCH ACTORS THEIR AGE DEAL WITH DATING DILEMMAS THE IDEA IS TO SNARE TEENAGERS AND KEEP THEM AS THEY BECOME ADULTS AND IT SEEMS TO BE WORKING AT MANY UNIVERSITIES STUDENTS OFTEN SCHEDULE CLASSES AROUND THEIR FAVORITE SOAPS AT BOWLING GREEN STATE UNIVERSITY THE MEN'S HOCKEY TEAM WATCHES DAYS OF OUR LIVES' SAYS RACHEL ELDRIDGE A GRADUATE STUDENT THERE WHO TEACHES A POPULARCULTURE COURSE THAT INCLUDES A SECTION ON SOAPS INDEED THERE IS A BURGEONING MALE AUDIENCE MEN NOW CONSTITUTE 20 OF ALL SOAP VIEWERS SAYS MS HARRINGTON BECAUSE MORE ARE AT HOME DURING THE DAY AS A RESULT OF EARLY RETIREMENTS LAYOFFS AND GROWING NUMBERS OF STAYATHOME DADS AND IN SOME OFFICE LUNCHROOMS MEN GATHER DAILY TO WATCH POPULAR SHOWS LIKE THE YOUNG AND THE RESTLESS OR ALL MY CHILDREN THESE CHANGES HAVE FORCED MARKETERS TO ALTER THE MIX OF PRODUCTS ADVERTISED ON SOAPS ONCE ONLY KITCHEN OR BATHROOM PRODUCTS WERE ADVERTISED BECAUSE IT WAS ASSUMED ONLY HOMEMAKERS WATCHED SOAPS MS HARRINGTON SAYS NOW MARKETERS LIKE P&G AIM AT TEENS WITH ADS FOR ALWAYS FEMININEPROTECTION PRODUCTS AND COVER GIRL COSMETICS AND PLY OLDER VIEWERS WITH ADS FOR METAMUCIL MOREOVER AUTO MAKERS RECOGNIZING THE GROWING FINANCIAL MIGHT OF WOMEN AND THE PRESENCE OF MALE VIEWERS ARE ADVERTISING MORE ON SOAPS AND OTHER DAYTIME PROGRAMS TO APPEAL TO A BROAD SPECTRUM OF VIEWERS P&G INSISTS IT AVOIDS SENSATIONAL PLOT LINES STICKING TO MIDDLE AMERICA KINDS OF SHOWS AND SCRUTINIZING SCRIPTS TO AVOID TAKING STANDS ON TOUCHY TOPICS LIKE ABORTION IN FACT P&G'S SOAPS AREN'T AS GLITZY AS THOSE OF SOME COMPETITORS THEY'RE MORE DOWNTOEARTH THE OUTFITS ARE NOT AS CUTTINGEDGE AND THE ACTORS ARE MORE NORMALLOOKING THOUGH THEY'RE ALL BETTER THAN AVERAGE SAYS LYNN LEAHEY EDITOR OF SOAP OPERA DIGEST THE RELAXED STUDIO IN BROOKLYN WHERE P&G TAPES 30YEAROLD ANOTHER WORLD IS A WORLD AWAY FROM THE COMPANY'S BUTTONDOWN CINCINNATI HEADQUARTERS ACTORS AND PRODUCTION STAFFERS WEAR RED AIDS RIBBONS ON THEIR LAPELS AND MEN WEAR EARRINGS AND PONYTAILS ONE OF THE BETTERKNOWN PONYTAILS BELONGS TO ACTOR CHARLES KEATING ALIAS CARL HUTCHINS WHO HAS METAMORPHOSED FROM EVIL TO NEARLY SAINTLY AS HAPPENS ALL THE TIME ON SOAPS DURING A BREAK MR KEATING SAYS HE BELIEVES THE RATINGS NUMBERS ARE MOVING UP BIT BY BIT THERE ARE SOME POSITIVE SIGNS FOR SOME OF P&G'S SHOWS GUIDING LIGHT RECENTLY GARNERED MORE DAYTIME EMMY NOMINATIONS THAN ANY OTHER SOAP QUALITY DOESN'T ALWAYS EQUAL RATINGS IN SOAPS SAYS MS LEAHEY EDITOR OF SOAP OPERA DIGEST WHEN THE AUDIENCE DROPS OFF IT TAKES A LONG LONG TIME TO GET THOSE PEOPLE BACK 9404250060 940425 MARKETING & MEDIA ADVERTISING CRITICS WONDER IF NFC AD SALES ON FOX ARE TOO GOOD TO BE TRUE BY KEVIN GOLDMAN FOX BROADCASTING SAYS IT IS REGISTERING SURPRISINGLY HEALTHY AD SALES IN ITS NATIONAL FOOTBALL LEAGUE PACKAGE OF NATIONAL FOOTBALL CONFERENCE GAMES BUT ADVERTISING AND BROADCASTING OFFICIALS PAINT A LESS ROSY PICTURE THE DISCREPANCY FOCUSES ON THE AUTOMOTIVE INDUSTRY TRADITIONALLY THE MOST IMPORTANT AND BIGGESTSPENDING ADVERTISER FOR THE NFL TELECASTS FOX EXECUTIVES SAY THE NETWORK HAS REGISTERED AD SALES OF 50 MILLION FROM AUTO MAKERS BUT OTHER BROADCAST INDUSTRY AND MADISON AVENUE EXECUTIVES CONTEND THE FIGURE ISN'T HIGHER THAN 35 MILLION AND ISN'T VERY LIKELY TO EXCEED 40 MILLION WHEN THE SELLING SEASON CONCLUDES THIS SUMMER IN CONTRAST NBC A UNIT OF GENERAL ELECTRIC SOLD APPROXIMATELY 60 MILLION TO 65 MILLION IN AUTO ADVERTISING TO DATE FOR ITS TELECASTS OF THE NFL'S AMERICAN FOOTBALL CONFERENCE INDUSTRY EXECUTIVES SAY THEY BELIEVE THE 199495 FOOTBALL SEASON IS THE FIRST TIME THE RIVAL AMERICAN FOOTBALL CONFERENCE ON NBC IS GETTING A MAJORITY OF THE AUTO AD SALES CBS WHICH BROADCAST THE NFL'S NATIONAL FOOTBALL CONFERENCE GAMES LAST YEAR HAD AUTO ADVERTISING SALES TOTALING ABOUT 70 MILLION WITH NBC RECEIVING ABOUT 60 MILLION FOR THE AFC GAMES IT BROADCAST FOX A NEWS CORP UNIT IS UNDER ENORMOUS PRESSURE TO GET THE HIGHEST PRICE IT CAN FOR ITS FOOTBALL PACKAGE THE SOCALLED FOURTH NETWORK SPENT MIGHTILY TO SNARE THE BROADCAST RIGHTS TO THE PRESTIGIOUS SUNDAY AFTERNOON GAMES AWAY FROM CBS WHICH HAD BROADCAST FOOTBALL FOR THE PAST 38 YEARS IN DECEMBER FOX OUTBID CBS BY PAYING 156 BILLION OR 395 MILLION ANNUALLY FOR FOUR YEARS APPROXIMATELY 100 MILLION MORE A YEAR THAN CBS WAS WILLING TO PAY NBC IN COMPARISON PAID 868 MILLION OR 217 MILLION ANNUALLY FOR FOUR YEARS IN DECEMBER TO RENEW ITS CONTRACT WITH THE AFC ADDING TO THE PRESSURE IS THE FACT THAT FOX'S PRIMETIME RATINGS IN THE 199394 SEASON THAT CONCLUDED APRIL 17 SLID TO 72 OF THE AUDIENCE FROM 77 A YEAR EARLIER IN FOOTBALL CBS CHARGED AUTO ADVERTISERS ABOUT 120000 FOR A THIRTYSECOND SPOT THE NETWORK CHARGED A SOCALLED PREMIUM RATE BECAUSE AUTO MANUFACTURERS MORE THAN ANY OTHER PRODUCT ARE WILLING TO PAY A PREMIUM TO ENSURE THEIR AD WON'T RUN IN THE SAME COMMERCIAL BREAK AS A COMPETITOR MADISON AVENUE WAS PREDICTABLY SKEPTICAL OF ANY PARITY FOX WOULD ATTEMPT WITH CBS PRICING OF FOX'S 172 AFFILIATES ONLY 34 ARE ON THE STRONGER VHF BAND WITH THE BALANCE ON THE UHF BAND WITH WEAKER SIGNALS WHEN FOX SIGNED THE NFL DEAL EXECUTIVES AT OTHER NETWORKS SAID FOX'S COVERAGE WOULD DRAW RATINGS 13 TO 15 LOWER THAN ON CBS BECAUSE OF FOX'S WEAKER LINEUP OF STATIONS WE'RE HOLDING CBS PRICES SAYS JON NESVIG FOX'S SENIOR VICE PRESIDENT FOR SALES I WOULD LIKE TO DO BETTER BUT PEOPLE ARE BUYING AND WE'RE GOING TO GET THE CBS NUMBER FOX DOESN'T HAVE THE SUPER BOWL IN JANUARY 1995 TO HELP RECOUP ITS EXPECTED HUGE LOSSES FROM THE FOOTBALL DEAL ITS FIRST SUPER BOWL WILL BE IN JANUARY 1997 IN NEW ORLEANS THE NEXT SUPERBOWL WILL BE BROADCAST ON CAPITAL CITIES/ABC'S NETWORK MR NESVIG ADMITS THAT WHEN RUPERT MURDOCH CHAIRMAN OF FOX'S PARENT NEWS CORP FIRST MADE THE DEAL WITH THE NFL I SAID I HAD A LOT OF HARD WORK AHEAD OF ME BUT NOW I'M PUMPED AND WE'RE ACTUALLY HAVING SOME FUN MR NESVIG DECLINES TO BE SPECIFIC BUT OTHER FOX OFFICIALS SAY THE THREE MAJOR DOMESTIC AUTO MAKERS FORD CHRYSLER AND GENERAL MOTORS ARE PURCHASING TIME ON THE TELECASTS CHRYSLER AND GM COULDN'T BE REACHED FOR COMMENT BUT A FORD SPOKESWOMAN SAID NO DECISION HAS BEEN MADE WE'RE EVALUATING FOX'S PROPOSAL IN ADDITION THE FOX EXECUTIVE SAYS THE NETWORK ALSO IS CLOSE TO DEALS WITH TOYOTA HONDA AND MERCEDESBENZ A TOYOTA SPOKESMAN CONFIRMS THE AUTO MAKER MADE A COMMITMENT TO FOX TO ADVERTISE ON ITS FOOTBALL TELECASTS IT HAD BEEN ON CBS'S NFC BROADCASTS THE SPOKESMAN HAD NO FURTHER DETAILS ON THE FOX COMMITMENT THE SPOKESMAN ADDS FOR THE FIRST TIME WE'RE ALSO BUYING TIME ON NBC'S FOOTBALL GAMES THE OTHER AUTO MAKERS COULDN'T BE REACHED FOR COMMENT ONE LEADING MADISON AVENUE EXECUTIVE WHO DIDN'T WANT TO BE QUOTED BY NAME SAYS ADVERTISERS DON'T HAVE TO PAY FOX WHAT WE PAID CBS FOX'S FOOTBALL COVERAGE IS AN UNKNOWN WE DON'T KNOW HOW IT WILL DO AND WHETHER VIEWERS WILL FOLLOW THE GAME FROM CBS TO FOX FOX IS TRYING TO REPLICATE CBS'S TALENT LINEUP IN THE ANNOUNCING BOOTH SO VIEWERS AND AS IMPORTANT ADVERTISERS ARE AS COMFORTABLE WATCHING THE GAME ON FOX AS THEY WERE THROUGH THE YEARS ON CBS FOX HIRED ANALYST JOHN MADDEN FOR AN ANNUAL SALARY OF 75 MILLION AND PAID ANOTHER 18 MILLION FOR ANALYST TERRY BRADSHAW LAST WEEK FOX SIGNED A DEAL WITH FORMER DALLAS COWBOYS COACH JIMMY JOHNSON FOR 600000 ANNUALLY MR NESVIG SAYS FOX HAS YET TO OFFER ADVERTISERS A RATINGS GUARANTEE THAT IS ASSURE SPONSORS THE SIZE OF THE AUDIENCE OR ELSE FOX WILL GIVE BACK FREE AD TIME UNTIL FOX RECEIVES THE WEEKBYWEEK MATCHUPS OF TEAMS MR NESVIG SAYS THE NETWORK CANNOT OFFER GUARANTEES BUT HE SAYS FOX IS GOING TO PROMOTE THE HELL OUT OF ITS FOOTBALL COVERAGE MR NESVIG EXPECTS HEALTHY RATINGS AT THE BEGINNING OF THE SEASON WHICH IS UNUSUAL IN THAT FOOTBALL RATINGS INCREASE AS THE 17WEEK SEASON PROCEEDS SAYS MR NESVIG THERE'S INTENSE INTEREST IN WHAT FOX IS GOING TO DO WITH FOOTBALL WE'RE GOING TO USE MORE TAPE MACHINES MORE CAMERAS I'M CONFIDENT WE HAVE A WINNER HERE FOOTE CONE & BELDING COMMUNICATIONS NAMED A NEW CHIEF AT ITS PHILADELPHIA OPERATIONS BRIAN P TIERNEY PRESIDENT AND CHIEF EXECUTIVE OF THE TIERNEY GROUP A PHILADELPHIA PR FIRM MR TIERNEY 37 YEARS OLD SUCCEEDS BRIAN GAIL WHO LEFT THE AGENCY EARLIER THIS YEAR FOR A VICE PRESIDENT'S POST AT CLIENT ARA SERVICES MR TIERNEY HAD HEADED PR OPERATIONS AT FCB'S PHILADELPHIA OPERATIONS FOR SEVERAL YEARS IN THE LATE 1980S WITH MR TIERNEY'S RETURN FOOTE CONE IS CHANGING THE NAME OF THE PHILADELPHIA OFFICE TO FCB/TIERNEY THE INTENT IS FOR MR TIERNEY TO BUY IT IF THE AGENCY CONTINUES TO GROW AN FCB SPOKESMAN SAID BILLINGS AT THE OFFICE ARE 110 MILLION THE AGENCY SAID JERRY & KETCHUM COTY A UNIT OF JOH A BENCKISER OF GERMANY AWARDED ITS 9 MILLION ASPEN FRAGRANCES ACCOUNT TO JERRY & KETCHUM THE AGENCY FORMED FROM THE MERGER OF KETCHUM COMMUNICATIONS' KETCHUM ADVERTISING AND MICROAGENCY JERRY INC THE PREVIOUS AGENCY WAS FOOTE CONE & BELDING COMMUNICATIONS CHICAGO ABC SPORTS THE ABC NETWORK'S SPORTS DIVISION TAPPED GREY ADVERTISING'S ENTERTAINMENT UNIT TO CREATE ADVERTISING AND BUY MEDIA GREY ENTERTAINMENT ALREADY CREATES ADS FOR ABC'S NEWS AND ENTERTAINMENT DIVISIONS THE PREVIOUS AGENCY WAS LOIS/USA NEW YORK ABC IS A UNIT OF CAPITAL CITIES/ABC BILLINGS COULDN'T BE DETERMINED ACCOUNTS THE US UNIT OF LIQUOR COMPANY WILLIAM GRANT & SONS OF SCOTLAND AWARDED ITS ESTIMATED 5 MILLION TO 6 MILLION ACCOUNT TO INTERPUBLIC GROUP'S MCCANNERICKSON NEW YORK CHIAT/DAY NEW YORK HAD THE ACCOUNT PREVIOUSLY BRANDS INCLUDE GLENFIDDICH FRANGELICO AND DRY SACK RICH PRODUCTS CORP BUFFALO TAPPED SAATCHI & SAATCHI'S CLIFF FREEMAN & PARTNERS TO CREATE ADS FOR ITS FARM RICH NONDAIRY CREAMER A NEW ACCOUNT THE AGENCY SAID WHO'S NEWS INTERPUBLIC GROUP'S MCCANNERICKSON NAMED MARSHALL KARP EXECUTIVE CREATIVE DIRECTOR OF ITS INTERACTIVE UNIT A NEW POSITION HE REMAINS EXECUTIVE VICE PRESIDENT AND EXECUTIVE CREATIVE DIRECTOR ON INTERNATIONAL ACCOUNTS AT MCCANN 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 9404250059 940425 NEW HUD REPORT CONTAINS PROPOSALS TO BOLSTER HOMELOAN BANK SYSTEM BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT URGED ACTION TO ASSURE THE FEDERAL HOME LOAN BANKS HAVE ADEQUATE PERMANENT CAPITAL AND RECOMMENDED THAT RISKBASED AND MINIMUM CAPITAL STANDARDS BE IMPOSED ON THE BANKS HUD CITED THE POSSIBILITY OF THE 12 REGIONAL FEDERAL HOME LOAN BANKS SELLING STOCK TO THE PUBLIC WHICH WOULD REQUIRE CONGRESSIONAL ACTION AND OTHER CAPITALRAISING ALTERNATIVES BUT IT DIDN'T ENDORSE ANY SPECIFIC COURSE OF ACTION HUD RECOMMENDED THAT MEMBERSHIP IN THE FEDERAL HOME LOAN BANK SYSTEM BE MADE COMPLETELY VOLUNTARY BUT ONLY IF PERMANENT CAPITAL AND RISKBASED STANDARDS ARE PROVIDED AND EMPHASIZED THE NEED TO STRENGTHEN THE SYSTEM TO BETTER SERVE THE NEEDS OF LOWINCOME AND MODERATEINCOME FAMILIES AND COMMUNITIES IT ALSO RECOMMENDED THAT THE FINANCIAL SAFETY AND SOUNDNESS REGULATION OF THE BANKS BE TURNED OVER TO THE NEW HUD OFFICE CREATED BY CONGRESS TO OVERSEE THE FEDERAL HOME LOAN MORTGAGE CORP AND THE FEDERAL NATIONAL MORTGAGE ASSOCIATION IN ADDITION REGULATION OF THE HOMELOAN BANK PROGRAM SHOULD REVERT TO HUD ELIMINATING THE NEED FOR THE SYSTEM'S CURRENT REGULATOR THE FEDERAL HOUSING FINANCE BOARD THESE AND OTHER RECOMMENDATIONS ARE CONTAINED IN A NEW REPORT TO BE RELEASED BY HUD SECRETARY HENRY CISNEROS THIS MORNING THE REPORT WAS PREPARED IN CONSULTATION WITH THE TREASURY AND THE WHITE HOUSE CONGRESS IS CONSIDERING OVERHAULING THE HOMELOAN BANK SYSTEM IN LIGHT OF MAJOR MARKET CHANGES THE HOMELOAN BANKS ARE GOVERNMENTSPONSORED ENTERPRISES CREATED TO INCREASE THE SUPPLY OF CREDIT FOR HOUSING BY LENDING TO MEMBER FINANCIAL INSTITUTIONS THEY OBTAIN FUNDS BY SELLING BONDS IN THE CAPITAL MARKETS THRIFTS FORM THE SYSTEM'S CORE BUT CONGRESS IN 1989 OPENED MEMBERSHIP TO COMMERCIAL BANKS AND CREDIT UNIONS AS OF LAST SEPT 30 2205 THRIFTS 1946 COMMERCIAL BANKS 50 CREDIT UNIONS AND 14 INSURANCE COMPANIES BELONGED TO THE SYSTEM HUD URGED REPEAL OF THE SOCALLED QUALIFIEDTHRIFT LENDER TEST TO LEVEL THE PLAYING FIELD AMONG SYSTEM MEMBERS HUD PROPOSED A NEW STATEMENT OF PURPOSE SAYING IN PART THAT THE SYSTEM'S BANKS SHOULD HAVE A SPECIFIC MANDATE TO FACILITATE MORTGAGE LENDING FOR HOUSING TO BE OWNED OR OCCUPIED BY LOW AND MODERATEINCOME FAMILIES AND COMMUNITY DEVELOPMENT LENDING SERVING IDENTIFIED INVESTMENT AREAS OR TARGETED POPULATIONS BUT IT SAID LOANS SUPPORTING SUCH ACTIVITIES SHOULD REMAIN SUBJECT TO EXISTING COLLATERAL RULES THE SYSTEM NOW HAS A COOPERATIVE STRUCTURE IN WHICH ITS CUSTOMERMEMBERS ARE ALSO ITS STOCKHOLDERS MEMBERS MUST BUY A MINIMUM AMOUNT OF STOCK IN THE HOMELOAN BANK SYSTEM BUT SOME CAN REDEEM THEIR STOCK IF THEY WITHDRAW FROM THE SYSTEM THIS LEAVES THE SYSTEM VULNERABLE TO CAPITAL DEPLETION BECAUSE COMMERCIAL BANK AND CREDITUNION MEMBERS CAN WITHDRAW AT ANY TIME AND STATECHARTERED SAVINGS ASSOCIATIONS WILL BE ABLE TO WITHDRAW IN 1995 THE FHLBANKS SHOULD BE RESTRUCTURED TO PROVIDE PERMANENT CAPITAL THROUGH NONREFUNDABLE TRADABLE STOCK RETAINED EARNINGS OR OTHER CAPITAL INSTRUMENTS OR STRUCTURES HUD SAID CITING VARIOUS ALTERNATIVES TO PROVIDING PERMANENT CAPITAL BUT EMBRACING NO SPECIFIC APPROACH 9404250058 940425 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN SIX SOUTHEAST ASIAN NATIONS APPROVED PLANS TO SPEND AS MUCH AS 15 BILLION ON ROADS RAILWAYS AND POWER GENERATION THE ASIAN DEVELOPMENT BANK SAID WITHOUT SPECIFYING A TIMETABLE THE PROJECTS THROUGHOUT THE MEKONG RIVER REGION ARE AIMED AT BOLSTERING ECONOMIC TIES AMONG BURMA CAMBODIA CHINA'S YUNNAN PROVINCE LAOS THAILAND AND VIETNAM THE REGIONAL COOPERATION EFFORT WAS SPURRED BY FREEMARKET POLICIES IN THE SIX COUNTRIES AND PEACE FOLLOWING DECADES OF WAR IN INDOCHINA TRANSPORTATION PROJECTS ACCOUNT FOR 135 BILLION OR 90 OF THE ESTIMATED SPENDING TOTAL AS REGIONAL ECONOMIC GROWTH NOW IS BEING HINDERED BY POOR ROADS BRIDGES AND SIMILAR LINKS ENERGY PROJECTS WILL ACCOUNT FOR 14 BILLION REPRESENTATIVES OF THE SIX NATIONS AT AN ADBSPONSORED MEETING IN HANOI ALSO ENDORSED JOINT EFFORTS IN TRADE INVESTMENT TOURISM HEALTH EDUCATION TRAINING AND ENVIRONMENTAL MANAGEMENT THE GERMAN BUNDESTAG PARLIAMENT'S LOWER HOUSE APPROVED A FINANCING PLAN FOR COMPULSORY NURSINGCARE INSURANCE PASSAGE IS CONSIDERED CERTAIN IN THE BUNDESRAT THE UPPER HOUSE TO PAY FOR THE PLAN A FEE EQUAL TO 1 OF WORKERS' GROSS PAY WOULD BE COLLECTED STARTING JAN 1 THIS WOULD RISE TO 17 IN MID1996 PAYMENTS WOULD BE SPLIT BETWEEN EMPLOYERS AND WORKERS BUT EMPLOYERS WOULD BE COMPENSATED BY ELIMINATING A WEEKDAY HOLIDAY BUSINESSES SAY THIS WOULDN'T COVER THEIR COSTS TRADE UNIONS WANT TO MAINTAIN THE TRADITION OF HAVING EMPLOYERS AND EMPLOYEES PAY EQUALLY FOR SOCIAL COSTS CUBA MIRED IN A STUBBORN ECONOMIC CRISIS CREATED GOVERNMENT MINISTRIES WITH BROADER FUNCTIONS AND SCRAPPED STATE COMMITTEES THE DECREE DISBANDED A BULKY ADMINISTRATIVE STRUCTURE THAT SINCE THE MID1970S MIRRORED THE COMMUNISTRULED CARIBBEAN ISLAND'S ECONOMIC LINKS WITH THE SOVIET UNION THE USSR'S 1991 COLLAPSE WRECKED CUBA'S ECONOMY RELIANT ON SUGAR EXPORTS AND OIL IMPORTS AND LED TO SEVERE SHORTAGES OF FOOD ENERGY AND CONSUMER GOODS LAYOFFS ARE EXPECTED AS THE GOVERNMENT SEEKS TO SLASH COSTS LATIN AMERICAN FOREIGN MINISTERS SAID THEY WOULDN'T TOLERATE ANY EUROPEAN ATTEMPTS TO LINK TRADE RELATIONS WITH ISSUES SUCH AS HUMAN RIGHTS THE ENVIRONMENT AND SOCIAL PROBLEMS AT A MEETING IN BRAZIL WITH EUROPEAN UNION REPRESENTATIVES LATIN AMERICA'S RIO GROUP EXPRESSED FEARS THAT THE REGION'S TRADE WITH THE EU COULD BE HURT BY IMPOSITION OF NONTRADE CONDITIONS EU DATA SHOW THAT LATIN AMERICAN EXPORTS TO EUROPE FELL 11 TO 25 BILLION IN 1993 FROM 28 BILLION IN 1990 WHILE SHIPMENTS IN THE OTHER DIRECTION JUMPED 53 TO 26 BILLION FROM 17 BILLION FIVE DECADES AGO WHEN FRANCE APPROVED WOMEN'S SUFFRAGE AND THE RIGHT TO HOLD PUBLIC OFFICE WOMEN HELD 5 OF THE SEATS IN THE FIRST POSTWORLD WAR II PARLIAMENT TODAY THEY HOLD 57 THE LOWEST RATE IN EUROPE IN A TIE WITH GREECE WOMEN WHO CONSTITUTE 53 OF FRENCH VOTERS AND 45 OF THE WORK FORCE ARE ACCELERATING THEIR DRIVE FOR ELECTORAL QUOTAS TO WHITTLE DOWN MEN'S DOMINATION OF THE POLITICAL SYSTEM IN GOVERNMENT FRENCHWOMEN HEAD 2 OF AGENCIES AND HOLD 11 OF MINISTERIAL POSTS TAIWAN IS HAVING MIXED RESULTS WITH PRIVATIZATIONS PARLIAMENT DELAYED SELLOFFS LAST YEAR OF STATERUN BES ENGINEERING CORP CHINA STEEL CORP CHINA PETROCHEMICAL DEVELOPMENT CORP AND TAIWAN MACHINERY MANUFACTURING CORP INITIAL PLANS WERE HAMPERED BY A WEAK STOCK MARKET AND PROCEDURES THAT DETERRED BIDDERS INVESTORS SNUBBED THE MACHINERY AND STEEL OFFERS THOUGH THE STEELMAKER IS HIGHLY PROFITABLE TWOTHIRDS OF THE CHEMICAL FIRM WAS PLACED PRIVATELY WITH THE REST TO BE AUCTIONED IN MIDMAY UNDERWRITERS ARE OPTIMISTIC ABOUT PUTTING 79 OF THE ENGINEERING COMPANY IN PRIVATE HANDS GUANGZHOU IS CLOSING 113 FOREIGN JOINT VENTURES THAT THE SOUTHERN CHINESE CITY SAYS FAILED TO MEET CONTRACTED FINANCIAL COMMITMENTS OTHER CITIES IN THE REGION SUCH AS SHENZHEN AND ZHUHAI ARE FOLLOWING SUIT IN AN APPARENT CRACKDOWN ON FRAUD THE CHINA DAILY REPORTED THOUGH THE GUANGZHOU BUSINESSES BEING SHUT REPRESENT JUST 2 OF THE CITY'S FOREIGNFUNDED FIRMS CHINA HAS COMPLAINED THAT THE GAP BETWEEN PROMISED AND DELIVERED INVESTMENT WAS TOO WIDE FOREIGN FIRMS LAST YEAR SIGNED CONTRACTS TO INVEST A RECORD 11085 BILLION IN CHINA UP 91 FROM A YEAR EARLIER IN BOOMING GUANGDONG PROVINCE ONLY 30 OF CONTRACTED FOREIGN CAPITAL HAS BEEN INVESTED FUND SHORTAGES ON THE CHINESE SIDE ARE PARTLY TO BLAME RECENT CREDITTIGHTENING POLICIES HAVE MADE IT HARDER FOR CHINESE ENTERPRISES TO GET LOANS ESPECIALLY IN OVERHEATED SECTORS SUCH AS REAL ESTATE SOME FOREIGN INVESTORS HAVE A TOUGH TIME RAISING OVERSEAS CASH TO RUN THEIR VENTURES BECAUSE OF DIFFICULTY IN EXCHANGING YUAN FOR HARD CURRENCIES IN NORWAY WHERE BANKS HAVE HAD TO SET UP SEPARATE BROKERAGE HOUSES TO TRADE SECURITIES THE GOVERNMENT IS LETTING THEM DEAL DIRECTLY ON OSLO'S STOCK MARKET TURKEY'S PARLIAMENT PASSED A BILL GRANTING THE CENTRAL BANK AUTONOMY