WHO ARE THE INTOLERANT CLOSEDMINDED MEANSPIRITED HATEMONGERS AS FAR AS I CAN TELL THEY ARE LIBERAL WOMEN AS A YOUNG CONSERVATIVE WOMAN I HAVE EXPERIENCED A NUMBER OF ACTS OF HATE IN THE PAST FEW MONTHS JUST BECAUSE I AM A CONSERVATIVE WOMAN I'VE BEEN VERBALLY ATTACKED AND GIVEN THE FINGER I THOUGHT ONE REDFACED WOMAN EYES AND VEINS BULGING SCREAMING AND YELLING WAS GOING TO JUMP THROUGH HER CAR WINDOW INTO MINE ALL OF THESE ACTIONS WERE UNPROVOKED AND IN RESPONSE TO MY OLLIE NORTH AND BUCHANAN '96 BUMPERSTICKERS AND TWO ANTICLINTON BUMPER STICKERS LIBERALS TALK ABOUT BEING OPENMINDED AND ACCEPTING BUT THAT IS ONLY IF YOU HAVE THEIR SAME VIEWS I DID NOT KNOW THAT THERE IS A CLAUSE AFTER THE FIRST AMENDMENT STATING THIS DOES NOT APPLY TO CONSERVATIVES I HAVE NEVER NOR HAS ANY CONSERVATIVE I KNOW VERBALLY ATTACKED OR GIVEN A HAND GESTURE TO DRIVERS WITH A CLINTONGORE OR A PROCHILD/PROCHOICE BUMPER STICKERS ON THEIR CARS WHEN I SEE THEIR OPINIONS THUS EXPRESSED I THINK QUIETLY TO MYSELF ANOTHER MISGUIDED SOUL ENTITLED TO HIS OR HER OWN OPINION LIBERALS WANT DIVERSITY AS LONG AS IT PERTAINS TO RACIAL QUOTAS AND SEXUAL PREFERENCE BUT IN THEIR UTOPIA THERE IS NO DIVERSITY OF IDEAS DIVERSITY ALL KINDS IS WHAT MAKES THIS COUNTRY GREAT ACTIONS SPEAK LOUDER THAN WORDS AND LIBERALS ARE ACTING OUT THEIR OWN STEREOTYPE OF CONSERVATIVES BY ATTACKING STRANGERS WHOSE BELIEFS DIFFER FROM THEIR OWN IF THEY WOULD JUST PRACTICE WHAT THEY PREACH ABOUT THEIR OWN PHILOSOPHY OF OPENMINDEDNESS THIS WORLD WOULD BE A BETTER PLACE 9404250056 940425 LETTERS TO THE EDITOR HAIL TO THE FIRST LADY'S BUSY CHIEF OF STAFF YOUR APRIL 12 PAGEONE ARTICLE ON HILLARY CLINTON'S CHIEF OF STAFF WAS HISTORICALLY INCORRECT IN AT LEAST ONE RESPECT THE ROLE OF STAFF DIRECTOR OF CHIEF OF STAFF TO THE FIRST LADY DURING THE PAST 30 YEARS HAS BEEN FAR MORE THAN SOCIAL AND CEREMONIAL MRS CLINTON HAS CHOSEN TO ACTUALLY SET POLICY AND THIS HAS DICTATED THE ACTIVITIES OF HER CHIEF OF STAFF IN THE PAST FIRST LADIES HAVE CHOSEN TO INFLUENCE POLICY AND THIS TOO HAS DICTATED THE JOB DESCRIPTION OF THEIR CHIEFS OF STAFF RUNNING THE EAST WING IS LIKE MANAGING A SMALL AGENCY IN THE CASE OF MRS JOHNSON HER EFFORTS ON BEAUTIFICATION WHICH ACTUALLY HELPED SPAWN THE ENVIRONMENTAL MOVEMENT WERE HEADED BY HER MOST COMPETENT LIZ CARPENTER BETTY FORD HAD HER STAFF DIRECTOR ACTIVELY ENGAGED IN ERA AND HEALTH ISSUES DURING THE REAGAN ADMINISTRATION THE OCCUPANT OF THIS POSITION ACTUALLY SERVED AS AN ASSISTANT TO THE PRESIDENT AS WELL AS CHIEF OF STAFF TO THE FIRST LADY THIS WAS A HELP IN FACILITATING COMMUNICATION AND PLANNING AS WELL AS PROVIDING A ROLE FOR THIS MANAGER ON THE PRESIDENT'S STAFF THE OCCUPANT OF THIS JOB TODAY DEALS WITH LEGAL ISSUES GOVERNMENT POLICY MEDIA TRAVEL SPEECH WRITING AND SCHEDULING AS WELL AS MANAGING THE SOCIAL AND CEREMONIAL EVENTS THAT TAKE PLACE IN THE WHITE HOUSE 9404250055 940425 BUSINESS BRIEF LEWIS GALOOB TOYS INC FIRSTQUARTER LOSS IS POSTED DESPITE INCREASE IN REVENUE LEWIS GALOOB TOYS INC REPORTED A WIDENED FIRSTQUARTER NET LOSS DESPITE INCREASED REVENUE DUE TO COSTS RELATED TO AN EXPANSION OF ITS TOY LINE THE SAN FRANCISCOBASED TOY MAKER SAID ITS NET LOSS WAS 17 MILLION OR 25 CENTS A SHARE COMPARED WITH A NET LOSS OF 14 MILLION OR 23 CENTS A SHARE IN THE YEARAGO QUARTER REVENUE ROSE 11 TO 302 MILLION GALOOB SAID REVENUE GAINS WERE OFFSET BY THE COST OF TOOLING AND PACKAGING IN ADVANCE OF SHIPMENTS OF NEW PRODUCTS THAT ARE SCHEDULED TO OCCUR OVER THE REST OF THE YEAR SEPARATELY GALOOB SAID IT NAMED ROGER KOWALSKY A DIRECTOR INCREASING THE BOARD TO SEVEN DIRECTORS MR KOWALSKY 59 YEARS OLD IS DIRECTOR OF THE VERMONT STUDIO CENTER A NONPROFIT CENTER FOR VISUAL ARTISTS AND WRITERS IN JOHNSON VT 9404250054 940425 PHILANTHROPY CHARITIES DRAW YOUNGER DONORS WITH HIP EVENTS AND DOOR PRIZES BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL FEEL THOSE SEQUINS FEEL THOSE SEQUINS CRIED AUCTIONEER TIMOTHY LUKE TO THE CROWD GATHERED LAST FEBRUARY AT NEW YORK CITY'S HARLEYDAVIDSON CAFE THE SEQUINED ITEM WAS ROCKSTAR MADONNA'S BRASSIERE AND ITS SALE AFTER A RAUCOUS THREEWAY BIDDING WAR RAISED 2500 FOR THE RAINFOREST ALLIANCE IN THE FUNDRAISING BUSINESS STUFFY ART AUCTIONS AND 100ATICKET DINNER DANCES ARE OLD NEWS MUSEUMS NONPROFIT GROUPS AND CHARITIES ARE SCROUNGING FOR WAYS TO LURE THE UNDER30 CROWD TO OPEN THEIR WALLETS THEIR SOLUTION GRUNGIER SILLIER OR CAMPIER EVENTS TICKETS TO THESE EVENTS ARE FREE OR VERY CHEAP M&M CANDIES AND STARBUCKS COFFEE OFTEN REPLACE PETITS FOURS AND CHAMPAGNE AS THE HORS D'OEUVRES OF CHOICE FUNDRAISERS SAY THE NEW TWISTS ARE NEEDED BECAUSE REVENUE FROM TRADITIONAL EVENTS HAS FALLEN OFF WEST COAST FUNDRAISER PAUL HOLM HAS BEEN RUNNING GOLF AND TENNIS TOURNAMENTS FOR CHARITY SINCE 1969 RAISING 35000 TO 150000 AN EVENT FOR MUCH OF THE LATE 1980'S BUT IT WAS GROWING A LITTLE THIN HE SAYS WITH ATTENDANCE AND PROCEEDS DOWN 10 IN RECENT YEARS NOW MR HOLM IS WORKING WITH CELEBRITIES INTERNATIONAL OF BEVERLY HILLS THEIR CHIC NEW TWIST IN FUNDRAISING HE SAYS IS AUCTIONS OF ART BY CELEBRITIES IN OFFBEAT LOCATIONS COMPLETE WITH PERSONAL APPEARANCES BY THE LIKES OF BUDDY EBSEN AND RICH LITTLE PLANNERS HAVE GONE TO GREAT LENGTHS TO GET NEW PEOPLE TO ATTEND THE EVENTS MORE AND MORE THE CHARITY AUCTIONS ARE FOCUSING ON THE YOUNGER CROWD SAYS MR LUKE WHO AS AUCTIONEER FOR CHRISTIE'S INTERNATIONAL PLC RAN MORE THAN 100 CHARITY AUCTIONS LAST YEAR WHILE MIDDLEAGED WOULDBE PHILANTHROPISTS ARE USED TO GOING TO THESE THINGS FOR THE YOUNGER CROWD YOU HAVE TO MAKE IT FUN NEW YORK'S NEW MUSEUM OF CONTEMPORARY ART HAS BEEN HOLDING BLACKTIE ART AUCTIONS AT THE RAINBOW ROOM FOR YEARS BUT THIS YEAR THEY NEEDED SOME NEW BLOOD IN THE AUCTION AS OPPOSED TO HAVING THE BEJEWELED LADIES COME SAYS MUSEUM SPOKESWOMAN CHARLAYNE HAYNES THIS YEAR'S BASH WHICH WAS HELD YESTERDAY FEATURED A 50 LIMITEDEDITION TSHIRT BY ARTIST FELIX GONZALEZTORRES THAT READS NOBODY OWNS ME AND AT A PARTY FOR TWENTYSOMETHING COLLECTORS EARLIER IN THE WEEK CONDOMS WERE THE PARTY FAVOR THE CHILDREN'S HOPE FOUNDATION WHICH HELPS CHILDREN WITH HIV AND AIDS RAISED MORE THAN TWICE AS MUCH AS IT HAD EXPECTED AT AN UNORTHODOX EVENT HELD AT A PARKING GARAGE IN MANHATTAN'S CHELSEA DISTRICT THE 20000SQUAREFOOT GARAGE WAS TRANSFORMED INTO A COMBINATION NIGHTCLUB/FLEA MARKET AND ALONG WITH THE DISCO MUSIC CAME DEALS ON DEPRESSIONERA GLASSWARE AND AN ARMCHAIR WITH ELVIS PRESLEY'S FACE ON IT AT A MODEST TICKET PRICE OF 35 ORGANIZERS PACKED THE PLACE RAISING 65000 SPONSORED BY AN ART AND ANTIQUES DEALER FASHION DESIGNER TODD OLDHAM AND DOWNTOWN STYLE MAGAZINE PAPER IT DREW A NEW YOUNGER CROWD SAYS LIZA JOSEPHSON OF CHILDREN'S HOPE AN UNEXPECTED BOOST A LOT OF THE DONORS BECAME VOLUNTEERS BUT ONE OF THE PROBLEMS WITH NEWWAVE FUNDRAISERS THE ORGANIZERS COMPLAIN IS THAT THE YOUNGER CROWD SOMETIMES FORGETS TO MAKE CONTRIBUTIONS THOMAS WEEMS RECENTLY HELD A FUNDRAISER FOR HIS FLEDGLING SOHO ART GALLERY SOUP TURNING THE FORMER COPACABANA NIGHTCLUB IN NEW YORK CITY INTO A SHOPPING MALL OFFERING NOT JUST ART BUT FURNITURE CLOTHING JEWELRY AND PAINTED TOILETSEATS ADMITTED FOR FREE HUNDREDS OF WRITERS SOAP OPERA ACTORS AND ARTISTS PARTIED IN THE SHADOW OF A HUGE PORTRAIT OF FIGURESKATER TONYA HARDING HER EYES ALTERED TO GLOW RED MR WEEMS ADMITS THE JAMPACKED EVENT RAISED MORE EYEBROWS THAN FUNDS SAYS ARTIST KENNY SCHACHTER WHOSE TONYA HARDING PICTURE WENT UNSOLD THAT EVENING PEOPLE WERE THERE TO DRINK ONE OF THE SECRETS OF RUNNING A SUCCESSFUL CHARITY EVENT SAYS CHRISTIE'S MR LUKE IS TO REALIZE THAT PEOPLE'S TASTES HAVE CHANGED AT CHARITY AUCTIONS PRINTS AND LITHOGRAPHS AREN'T GOING ANYWHERE DEMAND IS LOW FOR CELEBRITY AUTOGRAPHS AND HEALTHCLUB MEMBERSHIPS ALSO MOVE SLOWLY BECAUSE PEOPLE ARE ALREADY LOCKED INTO MEMBERSHIPS BUT VINTAGE WINES TEDDY BEARS RUGS AND PRACTICAL ITEMS DRAW AVID BIDDING AS DID A PEDIGREED PUPPY OFFERED AT A STAMFORD CONN HOSPITAL MASQUERADE BALL LAST FALL THE BESTSELLER WEEKENDS AT OUTOFTOWN HOTELS SAYS MR LUKE 9404250053 940425 LETTERS TO THE EDITOR LOSING OUR FREEDOM TO THE DRUG WAR I WAS NOT SURPRISED TO SEE YET ANOTHER LECTURE FROM THE SELFAPPOINTED DAD OF THE UNITED STATES WILLIAM J BENNETT LOSING THE DRUG WAR WITHOUT A FIGHT EDITORIAL PAGE APRIL 6 WHAT DID SURPRISE ME HOWEVER WAS MR BENNETT'S INCREDIBLE STATEMENT THAT IN A FREE SOCIETY FEW THINGS MATTER MORE THAN SPEAKING ABOUT THE RIGHT THINGS IN THE RIGHT WAY AND MAKING MORAL COMMON SENSE THE TOUCHSTONE OF SOCIAL POLICY WRONG MR BENNETT IN A FREE SOCIETY FEW THINGS MATTER MORE THAN KEEPING IT FREE THIS ENTAILS THE RECOGNITION OF INDIVIDUAL RIGHTS SO AS TO SUBORDINATE THE DEMANDS OF SOCIETY TO THE RIGHT OF INDIVIDUALS TO LIVE FOR THEIR OWN SAKE RIGHTS BY DEFINITION DO NOT IMPOSE OBLIGATIONS ON ANYONE ELSE AS SUCH THERE IS NO RIGHT TO SOMEONE ELSE'S DRUGFREE WELLBEING JUST AS THERE IS NO RIGHT TO DOCTORPROVIDED HEALTH CARE FURTHERMORE GOVERNMENTS IN A FREE SOCIETY ARE INSTITUTED AMONG MEN FOR THE PROTECTION OF THESE INDIVIDUAL RIGHTS NOTHING ELSE MAKING SOME ABSTRACT NOTION LIKE MORAL COMMON SENSE THE STANDARD OF STATE ACTION AS MR BENNETT WOULD LIKE OPENS THE DOOR TO GANG RULE BRUTE FORCE AND THE SUBSEQUENT DESTRUCTION OF LIBERTY WHILE I DON'T AGREE WITH THE CLINTON DRUG POLICY I AM APPALLED BY MR BENNETT'S INTELLIGENT ANTIDRUG STRATEGIES HE ASSERTS THAT COCAINE USAGE WENT DOWN IN 1985 THAT WAS THE YEAR THAT THE CRACK FORM OF COCAINE SWEPT AMERICA HE ALSO NOTES THAT IN 1992 DRUGRELATED HOSPITAL EMERGENCY ROOM VISITS WERE UP WASN'T BILL CLINTON RUNNING FOR OFFICE IN 1992 AND WEREN'T THE REPUBLICANS' DRUG POLICIES STILL IN EFFECT UNTIL OUR ELECTED OFFICIALS AND PUNDITS TAKE THE EFFECTS OF SUPPLY AND DEMAND ECON 101 INTO ACCOUNT NO ANTIDRUG STRATEGY WILL WORK THERE IS OVERWHELMING EMPIRICAL DATA THAT SHOWS THAT IRRESPECTIVE OF THE PENALTIES FOR DRUG DEALING INCLUDING DEATH THERE ARE PEOPLE READY TO BEGIN DEALING AT ALL TIMES BECAUSE THE PROFITS ARE SO GREAT THE MAGNITUDE OF THE PROFITS ARE DIRECTLY RELATED TO GOVERNMENTAL RESTRICTIONS ON SUPPLY DURING MR BENNETT'S REIGN AS DRUG CZAR THE DRUG MARKETPLACE PRODUCED EVER STRONGER DRUGS IN SMALLER CHEAPER PACKAGES AS A RESPONSE TO HIS POLICIES THIS TREND CONTINUES TODAY AS VERY POTENT FORMS OF HEROIN ARE BECOMING COMMONPLACE AND ULTRAPOTENT DRUGS MADE BY KITCHEN CHEMISTS FROM OVERTHECOUNTER COLD MEDICINES CAT ARE AVAILABLE NATIONWIDE OUR INNER CITIES HAVE BEEN DESTROYED AND PART OF A GENERATION OF OUR YOUTH HAVE BEEN LOST TO DRUG PROHIBITION AND ITS INORDINATE PROFITS GANG TURF WARS ARE NOTHING MORE THAN DRUG DEALER ORGANIZATIONS FIGHTING FOR DRUG SALES RIGHTS IN A GIVEN TERRITORY THE GANGS VIEW LIFE AS BEING CHEAP RELATIVE TO THE PROFIT POTENTIAL CREATED BY THE BENNETTESPOUSED ANTIDRUG POLICIES PROHIBITION HAS FAILED AND WILL CONTINUE TO FAIL BECAUSE OF BASIC ECONOMICS THE LAW OF SUPPLY AND DEMAND CANNOT BE REPEALED MR BENNETT SHOULD LOOK AT THE CONDITION OF OUR PRISON AND COURT SYSTEMS WHILE HE STUDIES THE CORRELATION BETWEEN THE MURDER RATE AND THE NUMBER OF DOLLARS SPENT ON DRUG PROHIBITION BY OUR GOVERNMENT THE MORE WE SPEND ON ARREST AND INCARCERATION FOR DRUGS THE MORE MURDERS THERE ARE WHAT PROPERTIES MUST A SUBSTANCE HAVE BEFORE WE GIVE OUR GOVERNMENT THE RIGHT TO KICK IN OUR DOORS WITHOUT KNOCKING SEARCH OUR HOMES WITHOUT WARRANTS BOATERS ALREADY FACE THIS NIGHTMARE SEIZE PROPERTY OF PEOPLE NOT CONVICTED OF A CRIME AND JAIL PEOPLE FOR LIFE THOUGH APATHETIC ABOUT THE DRUG WAR THE CLINTON ADMINISTRATION IS NOW FRANTIC OVER A RECENT STUDY SHOWING A TWOPERCENTAGEPOINT RISE IN SMOKING AMONG HIGH SCHOOL SENIORS SURGEON GENERAL JOYCELYN ELDERS IS WARNING AMERICANS IF WE DO NOT ACT SWIFTLY AND AGGRESSIVELY TO REVERSE THESE PATTERNS OF EARLY ADDICTION TO TOBACCO OUR YOUNG PEOPLE WILL FACE THE SAME NEEDLESS SUFFERING AND DEATH THAT SO MANY LIFETIME SMOKERS ARE FACING TODAY SHE IS JOINED BY THE FDA OSHA DEFENSE DEPARTMENT AND THE WHITE HOUSE IN DECLARING AN ALLOUT WAR ON CIGARETTE SMOKING AND THE TOBACCO INDUSTRY YET DESPITE GROWING EVIDENCE THAT ILLICIT DRUG USE AND ITS ACCESSIBILITY AMONG ADOLESCENTS IS ON THE RISE AFTER MORE THAN A DECADE OF STEADY DECLINE THE CLINTON ADMINISTRATION HAS SEEN NO SIMILAR NEED FOR CABINETWIDE ACTION CONSIDER THAT FROM 1992 TO 1993 ILLICIT DRUG USE AMONG HIGH SCHOOL SENIORS GREW FROM 271 TO 31 IN FACT THE USE OF MARIJUANA INCREASED FROM 326 IN 1992 TO 353 IN 1993 ALONG WITH LSD WHICH ALSO INCREASED FROM 86 TO 103 THE SURGEON GENERAL IS APPARENTLY UNDISTURBED BY THESE NEW FINDINGS WHAT TROUBLES ME IS THAT DESPITE CLEAR EVIDENCE THAT DRUG ABUSE CARRIES A GREATER RISK OF PHYSICAL PSYCHOLOGICAL SOCIAL AND FAMILIAL COMPLICATIONS THE CLINTON ADMINISTRATION HAS MADE THE WAR AGAINST CIGARETTE SMOKING AND NOT ILLICIT DRUG USE A TOP PRIORITY IT HAS SET ABOUT GUTTING THE OFFICE OF NATIONAL DRUG CONTROL POLICY DENOUNCING MANDATORY MINIMUM SENTENCING FOR DRUG TRAFFICKERS AND ENDORSING MASSIVE CUTS IN THE DRUG ENFORCEMENT DIVISION OF THE DRUG ENFORCEMENT AGENCY AS WELL AS DRUG INTERDICTION AND INTELLIGENCE PROGRAMS 9404250052 940415 IN BOSNIA ANOTHER MISTAKE BY JOHN MCCAIN SINCE THE SUMMER OF 1992 I HAVE GREETED CALLS FOR LIMITED AIR STRIKES IN BOSNIA WITH THE TYPICAL SKEPTICISM OF A FORMER NAVY PILOT WHO HAS HAD OCCASION TO CLOSELY OBSERVE THE LIMITS OF AIR POWER I KNOW TOO WELL THAT THE USE OF AIR POWER ALONE HAS NEVER DETERMINED THE OUTCOME OF A MILITARY CONFLICT SEIZING GROUND THE ONLY MEASURE OF PROGRESS ON THE BATTLEFIELD IS THE INFANTRY SOLDIER'S JOB THUS I ADMIT TO SOME DISDAIN FOR THE CONFIDENT PREDICTIONS OF NEWLY MINTED MILITARY EXPERTS THAT LIMITED AIR STRIKES IN BOSNIA BLOW A BRIDGE HERE AN AMMO DUMP THERE WILL YIELD POLITICAL AS WELL AS MILITARY DIVIDENDS SUFFICIENT TO FORCE A FAIR SETTLEMENT OF THAT BLOODY CIVIL WAR HOWEVER NOW THAT WE HAVE ALLOWED UNITED NATIONS OFFICIALS TO CALL IN VERY LIMITED NATO AIR STRIKES AGAINST BESIEGING SERB FORCES AROUND GORAZDE I FIND MYSELF IN AN UNCOMFORTABLE POSITION FOR A POLITICIAN HOPING FERVENTLY THAT I AM WRONG I HOPE THAT A MILITARY ACTION THAT VIOLATES EVERY LESSON LEARNED FROM OUR MISTAKES IN VIETNAM BEIRUT AND SOMALIA WILL BE THE EXCEPTION THAT PROVES THE RULE I HOPE THAT THE EXCEEDINGLY CONFUSED US POLICIES THAT PRODUCED THIS ACTION WHICH LIKE SO MUCH OF THE ADMINISTRATION'S DISQUIETING APPROACH TO THE WORLD VIOLATES DIPLOMATIC LESSONS LEARNED THROUGHOUT THIS CENTURY WILL NOT IRREPARABLY HARM US INTERESTS AROUND THE WORLD PRESIDENT CLINTON THREATENED AIR STRIKES AGAINST BOSNIAN SERBS 10 TIMES WITHOUT FOLLOWING THROUGH UNDERMINING OUR CREDIBILITY NOT ONLY IN YUGOSLAVIA BUT IN MANY OTHER CAPITALS WHERE LEADERS ARE ESTIMATING THE COST OF CONFRONTATION WITH THE US IN FEBRUARY THE ADMINISTRATION AND OUR NATO ALLIES ULTIMATELY PRESENTED AN APPARENTLY CREDIBLE THREAT THAT AT LEAST UNTIL NOW HAS PERSUADED THE SERBS TO LIFT THEIR SIEGE OF SARAJEVO FINALLY ON APRIL 10 ONE WEEK AFTER THE US SECRETARY OF DEFENSE AND CHAIRMAN OF THE JOINT CHIEFS OF STAFF CLEARLY FORSWORE US MILITARY ACTION TO LIFT THE SERBIAN SIEGE OF GORAZDE US AIRCRAFT WERE ORDERED INTO BATTLE BY THE UN IMMEDIATELY VITIATING US POLICY AS ARTICULATED BY SECRETARY WILLIAM PERRY AND GEN JOHN SHALIKASHVILI ALL OF THIS PROVES ONCE AGAIN THAT IF THERE IS A UNIFYING THEME TO THIS ADMINISTRATION'S FOREIGN POLICY IT IS THE DANGEROUSLY CASUAL RELATIONSHIP BETWEEN RHETORIC AND ACTION MY RESERVATIONS ABOUT AIR STRIKES ARE BASED ON SEVERAL CONCERNS THE TACTICAL PROBLEMS POSED BY CHRONIC POOR WEATHER AND VERY DIFFICULT MOUNTAINOUS TERRAIN THE IMPROBABILITY THAT THE STRIKES WOULD ENCOURAGE THE WARRING PARTIES TO REACH A SETTLEMENT AND THE PROSPECT THAT THE ACTION WOULD BEGIN AN INCREMENTAL ESCALATION OF OUR INVOLVEMENT IN THIS WAR IN THE TWO STRIKES TO DATE US PILOTS ENCOUNTERED SUBSTANTIAL DIFFICULTIES IN FINDING THEIR TARGETS IN THE PREDICTABLY ROTTEN WEATHER FLYING DANGEROUSLY LOW UNTIL NEARLY OUT OF FUEL OUR PILOTS HAD TO SETTLE FOR TARGETS OF NEGLIGIBLE VALUE A TENT A TRUCK AND TWO ARMORED PERSONNEL CARRIERS THEIR ALTITUDE WAS SO LOW THAT SOME OF THEIR BOMBS FAILED TO DETONATE ILLUSTRATIVE OF THE DANGERS INHERENT IN SUCH OPERATIONS THESE PROBLEMS STAND AS A REBUKE TO SOME MEMBERS OF CONGRESS AND DEFENSE OFFICIALS WHO BURNISH THEIR NEWFOUND HAWK CREDENTIALS BY DECLARING AIR STRIKES A PIECE OF CAKE THE SERBS INTERPRETED OUR ACTION AS INVOLVEMENT ON THE SIDE OF THE MUSLIMS SO DID THE MUSLIMS DESPITE OUR DISINGENUOUS ASSERTIONS THAT WE WERE ONLY PROVIDING CLOSE AIR SUPPORT FOR 12 UN PEACEKEEPERS IN GORAZDE WE CLEARLY TOOK THE ACTION TO PERSUADE THE SERBS TO LIFT THEIR SIEGE OF THAT SAFE AREA THE SERBS BROKE OFF PEACE TALKS WITH THE UN AND NOW TALK ONLY WITH A RUSSIAN REPRESENTATIVE THE MUSLIMS CALLED FOR MORE STRIKES AND FIRED ON SERB FORCES OUTSIDE GORAZDE AS OF THIS WRITING NEGOTIATIONS HAVE YET TO RESUME THE SERBS HAVE SEIZED OR RESTRICTED THE MOVEMENT OF MORE THAN 200 UN PERSONNEL APPARENTLY AS INSURANCE AGAINST FURTHER STRIKES ANOTHER UNDECLARED SAFE AREA TUZLA HAS COME UNDER SERB ARTILLERY ATTACK WESTERN JOURNALISTS HAVE BEEN ORDERED OUT OF SERBIANCONTROLLED AREAS SNIPING AND GRENADE ATTACKS HAVE RESUMED IN SARAJEVO SERBS APPROACHED A UNGUARDED ARMS DEPOT NEAR SARAJEVO DEMANDING ACCESS TO THE WEAPONS MOST ALARMING BOSNIAN SERB LEADER RADOVAN KARADZIC TOURED HIS FRONT LINES DECLARED THE MINIMAL AIR STRIKES TO BE NATO'S LAST CARD ON THE TABLE THREATENED TO SHOOT DOWN ANY OTHER AIRCRAFT FLYING IN HIS DIRECTION PREDICTED THAT NATO WOULD NOW HAVE TO INTRODUCE GROUND TROOPS AND IN A DISPLAY OF BATTLEFIELD BRAVADO WELCOMED THAT PROSPECT MY FEAR IS THAT THE SERBS' REACTION WILL BEGET NEW NATO STRIKES WHICH WILL BEGET STRONGER SERB REACTIONS WHICH WILL BEGET STRONGER STRIKES WHICH ULTIMATELY WILL AMOUNT TO FAILURE REINFORCING FAILURE THE FINAL DILEMMA WROUGHT BY THIS MISSION CREEP WILL BE A CHOICE BETWEEN DEPLOYING GROUND TROOPS TO RESOLVE THE CONFLICT AND WITHDRAWING IN DEFEAT THE FIRST WILL REQUIRE OUR INVOLVEMENT IN A LONG AND BLOODY ENGAGEMENT THAT THE AMERICAN PEOPLE WILL OPPOSE OVERWHELMINGLY THE SECOND COULD CRIPPLE ALL US FOREIGN POLICY FOR THE DURATION OF THIS ADMINISTRATION I HOPE EVERY SUBSEQUENT DEVELOPMENT IN BOSNIA PROVES ME WRONG I HOPE THE SERBS FEEL THEY HAVE CONSUMED ENOUGH TERRITORY THAT THEIR ONLY REMAINING PURPOSE IS TO CONSOLIDATE THEIR GAINS I HOPE THE US ACTIONS PRECIPITATE A LASTING SETTLEMENT OF THIS TRAGIC CONFLICT I HOPE THE ENTIRE WORLD IS IMPRESSED BY THE COURAGE AND WISDOM OF AMERICA'S LEADERS IF SO I WILL GLADLY ACCEPT THE CERTAIN I TOLD YOU SO'S FROM CRITICS OF MY POSITION BUT I WOULD LEAVE THEM WITH ONE FINAL WARNING DO NOT LEARN THE WRONG LESSONS FROM SUCH A SUCCESS AND EAGERLY APPLY THEM TO OTHER CONFLICTS IF WE ARE SUCCESSFUL THE ONLY LESSON THAT MAY BE APPLICABLE IS THAT OLD ADAGE GOD PROTECTS FOOLS SEN MCCAIN R ARIZ A CAREER NAVY AVIATOR IS ON THE ARMED SERVICES COMMITTEE SEE RELATED LETTER LETTERS TO THE EDITOR WE DEFEND BOSNIA WITH TALK AND EXCUSES WSJ APRIL 25 1994 9404150076 YY94 MM04 9404250051 940425 INTERNATIONAL FRENCH OUTPUT FELL IN 1993 PARIS FRANCE'S GROSS DOMESTIC PRODUCT FELL A REVISED 1 IN 1993 COMPARED WITH A PRELIMINARY ESTIMATE OF DOWN 07 THE NATIONAL STATISTICS INSTITUTE SAID THE INSTITUTE NOTED THAT THE ECONOMIC RECESSION WAS PARTICULARLY MARKED BY WEAK HOUSEHOLD CONSUMPTION WHICH GREW BY JUST 04 IN VOLUME LAST YEAR THE LOWEST PACE SEEN IN 30 YEARS 9404250050 940425 BUSINESS BRIEF BELL ATLANTIC CORP HEALTHCARE SYSTEMS DIVISION TO BE SOLD TO HCS HOLDINGS BELL ATLANTIC CORP SAID IT ENTERED INTO A DEFINITIVE AGREEMENT TO SELL ITS HEALTHCARE SYSTEMS UNIT TO HCS HOLDINGS CORP A COMPANY FORMED BY BOSTONBASED INFORMATION PARTNERS INC WITH BACKING FROM DUN & BRADSTREET CORP AND OTHER INVESTORS TERMS WERE NOT DISCLOSED BELL ATLANTIC HEALTHCARE PROVIDES CLINICAL INFORMATION SYSTEMS ITS PROPRIETARY STATELAN AND OACIS SYSTEMS ARE DESIGNED TO IMPROVE THE QUALITY AND COST OF PATIENT CARE THE UNIT WILL BE RENAMED OACIS HEALTHCARE SYSTEMS INC BELL ATLANTIC A REGIONAL BELL TELEPHONE COMPANY BASED IN PHILADELPHIA SAID IT IS SELLING THE UNIT TO FOCUS ON ITS CORE COMMUNICATIONS INFORMATION AND ENTERTAINMENT BUSINESSES 9404250049 940406 LOSING THE DRUG WAR WITHOUT A FIGHT BY WILLIAM J BENNETT DURING THE PAST 15 YEARS AMERICAN SOCIETY EXPERIENCED AN ALARMING INCREASE IN SOCIAL PATHOLOGIES BUT DURING THIS PERIOD THERE WAS ONE AREA AGAINST WHICH WE MADE SIGNIFICANT PROGRESS DRUG USE UNFORTUNATELY THE LATEST REPORTS INDICATE A RESURGENCE OF DRUGTAKING THE PROGRESS AGAINST DRUGS WAS THE RESULT OF A SIGNIFICANT CULTURAL SHIFT DURING THE LATE 1960S AND MUCH OF THE 1970S DRUG USE WAS WIDELY THOUGHT OF ESPECIALLY BY THE YOUNG AS HARMLESS FUN OR AS MERE SELFINDULGENCE BUT BEGINNING AT THE END OF THE 1970S AND THROUGHOUT THE 1980S WHEN THE HUMAN CARNAGE CAUSED BY DRUG USE WAS ALL BUT IMPOSSIBLE TO DENY IT BECAME INCREASINGLY AND FAR MORE ACCURATELY SEEN AS A PERSONAL MEDICAL AND ECONOMIC CATASTROPHE PARENTS EDUCATORS STUDENTS CLERGY COMMUNITY LEADERS AND EVEN THE MEDIA HELPED TO CHANGE AND HARDEN AMERICAN OPINION ABOUT DRUGS BEHAVIORAL CHANGE FOLLOWED AND THE FEDERAL GOVERNMENT AND MANY STATES IMPLEMENTED INTELLIGENT ANTIDRUG STRATEGIES AS A RESULT OVERALL DRUG USE WENT DOWN FROM THE LATE 1970S TO THE EARLY 1990S CASUAL DRUG USE BY AMERICANS DROPPED BY ALMOST ONEHALF BETWEEN 1985 AND 1992 MONTHLY COCAINE USE DECLINED BY ALMOST 80 FOR A DECADE DRUG USE AMONG YOUNG PEOPLE STEADILY DECLINED BUT EARLIER THIS YEAR THE NATION RECEIVED BAD NEWS ON THE DRUG FRONT DRUG USE AMONG ADOLESCENTS IS ONCE AGAIN ON THE RISE SURVEY RESULTS FOR 1993 INDICATE A SHARP INCREASE IN MARIJUANA USE FOR EIGHTH 10TH AND 12THGRADE STUDENTS AS WELL AS AN INCREASE IN THE USE OF STIMULANTS LSD AND INHALANTS AND HOSPITALS REPORTED A RECORD NUMBER OF DRUGRELATED EMERGENCYROOM VISITS IN 1992 SUGGESTING THAT HEAVY DRUG USE IS ALSO ON THE RISE THESE FINDINGS SHOULD HAVE MOBILIZED THE FEDERAL GOVERNMENT TO FORCEFULLY STATE THE CASE AGAINST DRUG USE TO ENFORCE THE LAW AND TO PROVIDE SAFETY AND SECURITY FOR ITS CITIZENS INSTEAD THE CLINTON ADMINISTRATION HAS SAID LITTLE TO ENCOURAGE THOSE FIGHTING THE GOOD FIGHT AND HAS PROPOSED FUNDAMENTALLY MISGUIDED POLICIES CONSIDER THE RECORD DAYS AFTER TAKING OFFICE THE ADMINISTRATION CUT THE OFFICE OF NATIONAL DRUG CONTROL POLICY'S STAFF BY MORE THAN 80 SOON AFTER ASSUMING OFFICE ATTORNEY GENERAL JANET RENO ANNOUNCED THAT SHE WANTED TO REDUCE THE MANDATORY MINIMUM SENTENCES FOR DRUG TRAFFICKING AND RELATED FEDERAL CRIMES HER FOCUS SHE IS ENGAGED IN A NEVERENDING SEARCH FOR THE ROOT CAUSES OF CRIME AND DRUG USE THE ADMINISTRATION HAS ENDORSED A DRUG STRATEGY CALLING FOR A CUT OF MORE THAN 600 POSITIONS FROM DRUG ENFORCEMENT DIVISIONS OF THE DRUG ENFORCEMENT AGENCY THE FBI THE IMMIGRATION AND NATURALIZATION SERVICE AND OTHER FEDERAL AGENCIES THE ADMINISTRATION HAS ALSO PROPOSED CUTTING MORE THAN 100 DRUG PROSECUTION POSITIONS IN THE US ATTORNEY'S OFFICES A CUT IN FUNDS FOR DRUG INTERDICTION AND DRUG INTELLIGENCE PROGRAMS FROM FISCAL 1994 LEVELS AND AN UNFOCUSED WASTEFUL DRUG TREATMENT STRATEGY THAT WILL DO LITTLE TO TARGET HARDCORE USERS BUT THERE IS MORE INVOLVED HERE THAN A FAILURE OF PUBLIC POLICY THE CLINTON ADMINISTRATION SUFFERS FROM MORAL TORPOR ON THIS ISSUE POLICY FOLLOWS ATTITUDE IN 1991 WHEN ASKED ABOUT HIS PAST DRUG USE MR CLINTON DECLARED THAT HE HAD NEVER BROKEN ANY DRUG LAW A YEAR LATER HE ADMITTED THAT WHEN HE WAS IN ENGLAND HE HAD EXPERIMENTED WITH MARIJUANA BUT I DIDN'T LIKE IT I DIDN'T INHALE IT AND NEVER TRIED IT AGAIN LATER WHEN ASKED WHETHER HE WOULD INHALE IF HE HAD TO DO IT OVER AGAIN HE ANSWERED TO LAUGHTER SURE IF I COULD I TRIED BEFORE AND THEN THERE IS SURGEON GENERAL JOYCELYN ELDERS THE ADMINISTRATION'S LOUDEST VOICE ON DRUGS WHILE PRESIDENT CLINTON DISSOCIATED HIMSELF ONCE FROM DR ELDERS'S FAVORABLE WORDS ABOUT DRUG LEGALIZATION SHE HAS CONTINUED TO MAKE SUCH STATEMENTS AND THE PRESIDENT HAS DONE NOTHING EFFECTIVE TO STOP HER THESE STATEMENTS ARE SIGNIFICANT BECAUSE OF THE MINDSET THEY REVEAL AND THE SIGNALS THEY SEND ONE OF THE CONDITIONS THAT ALLOWED THE DRUG EPIDEMIC TO OCCUR IN THE FIRST PLACE WAS THE COLLAPSE OF INSTITUTIONAL AUTHORITY GOVERNMENT IN THE 1970S OFTEN DIDN'T KNOW WHERE IT STOOD OR WHAT TO SAY ABOUT DRUGS PETER BOURNE WHO EARLY ON SERVED AS PRESIDENT CARTER'S ADVISER ON DRUGS SAID THAT COCAINE IS PROBABLY THE MOST BENIGN OF ILLICIT DRUGS CURRENTLY IN WIDESPREAD USE GOVERNMENT OFFICIALS THROUGH LEGISLATION AND PUBLIC DISCOURSE CAN LEGITIMIZE AND DELEGITIMIZE CERTAIN ACTS IN A FREE SOCIETY FEW THINGS MATTER MORE THAN SPEAKING ABOUT THE RIGHT THINGS IN THE RIGHT WAY AND MAKING MORAL COMMON SENSE THE TOUCHSTONE OF SOCIAL POLICY DURING THE 1980S NANCY REAGAN WAS RIDICULED FOR HER JUST SAY NO CAMPAIGN BUT IT TURNS OUT THAT JUST SAY NO IS FAR MORE EFFECTIVE THAN I DIDN'T INHALE MR CLINTON SPENT MUCH OF THE PRESIDENTIAL CAMPAIGN AND THE FIRST 14 MONTHS OF HIS PRESIDENCY DECRYING IN THE NAME OF THE DEFENSELESS POOR THE SOCIAL PROGRAMS OF TWO REPUBLICAN ADMINISTRATIONS BUT TODAY ON ONE OF THE ISSUES THAT DISPROPORTIONATELY HARMS THE POOR THAT IS WIPING OUT MANY OF THE CHILDREN OF THE POOR HE AND HIS ADMINISTRATION HAVE DEMONSTRATED MASSIVE INDIFFERENCE ONE WOULD THINK THAT A LITTLE MORE CONCERN AND SERIOUS THOUGHT WOULD COME FROM A PRESIDENT WHO CLAIMS TO FEEL THE PAIN OF THOSE WHO SUFFER MR BENNETT A CODIRECTOR OF EMPOWER AMERICA WAS PRESIDENT BUSH'S DIRECTOR OF THE OFFICE OF NATIONAL DRUG CONTROL POLICY SEE RELATED LETTER LETTERS TO THE EDITOR LOSING OUR FREEDOM TO THE DRUG WAR WSJ APRIL 25 1994 9404060057 YY94 MM04 9404250048 940425 REVIEW & OUTLOOK EDITORIAL BAD MEDICINE LAST WEEK REP JOHN DINGELL ATTEMPTING TO FASHION A HEALTH REFORM BILL THAT HIS COMMITTEE'S MEMBERS WOULD AT LEAST SHOW UP TO VOTE ON DROPPED A PAIR OF CLINTONSUPPORTED PROVISIONS TO CONTROL DRUG PRICES CONTROLS ON DRUG PRICES IS A PERENNIALLY POPULAR GOAL FOR POLITICIANS SO THIS ONE MAY BE BACK BEFORE THE VOTING STOPS THE CLINTON POLICY TYPES ADMIRE THE WAY THE EUROPEANS ADMINISTER THEIR HEALTH SYSTEMS SO IT'S WORTH NOTING HOW DRUGS HAVE FARED OVER THERE IRONICALLY THERE'S BEEN SOME MOVEMENT IN EUROPE RECENTLY TO TRY TO MOVE IN THE OPPOSITE DIRECTION TOWARD DEREGULATING THE HIGHLY CONTROLLED INDUSTRY RECENTLY THOUGH THE EUROPEAN COMMISSION'S DRAFT ON INDUSTRIAL POLICY BACKED AWAY FROM DEREGULATION PERHAPS FIGURING WHY BOTHER IF THE US WAS GOING TO BURDEN ONE OF ITS MOST COMPETITIVE INDUSTRY'S WITH EUROSTYLE REGULATION THE PROBLEM OF PHARMACEUTICALS IN EUROPE IS EASILY DEFINED MARKET FORCES THAT WOULD NORMALLY CONTROL PRICES HAVE BEEN LARGELY DESTROYED IN A NORMAL MARKET CONSUMERS SPENDING THEIR OWN MONEY WOULD LIMIT THEIR PHARMACEUTICAL CONSUMPTION TO THOSE MEDICINES PROMISING REAL RELIEF FROM WHATEVER AILS THEM DOCTORS OUT OF CONSIDERATION FOR THE POCKETBOOKS OF THEIR PATIENTS WOULD PRESCRIBE ONLY SUCH DRUGS PHARMACEUTICAL COMPANIES WOULD COMPETE FOR THIS LIMITED DEMAND TRYING TO OFFER GOOD QUALITY AT A REASONABLE PRICE IN EUROPE NATIONAL HEALTH SERVICES WHATEVER THEIR MERITS AS PART OF A SOCIAL SAFETY NET HAVE ALL BUT DESTROYED THAT KIND OF MARKET BUT HERE'S THE DARK SIDE RECESSIONRACKED GOVERNMENTS ARE TRYING DESPERATELY TO CUT BUDGET DEFICITS AND ARE OFTEN TARGETING AS A POINT OF LEAST RESISTANCE THE PHARMACEUTICALS PAID FOR BY NATIONAL HEALTH PLANS THEY VARIOUSLY ARE REDUCING THE TOTAL BUDGET ALLOTMENTS FOR DRUGS CAPPING THE PRICES OR LEAVING EXPENSIVE DRUGS OFF THE LISTS OF THOSE THAT THE HEALTH PLAN WILL PAY FOR IN THE ABSENCE OF A FUNCTIONING MARKET IN WHICH PEOPLE ARE FORCED TO MAKE INDIVIDUAL CHOICES THERE IS NOTHING MUCH LEFT BUT THE MEAT AX THE MEAT AX APPROACH UNFORTUNATELY HAS UNHAPPY CONSEQUENCES NEW DRUGS THAT ARE TRULY EFFICACIOUS AND MIGHT EVEN REDUCE THE LONGTERM COST OF AN ILLNESS ARE OFTEN NONREIMBURSABLE BECAUSE THEY ARE TOO EXPENSIVE THE PRICE CEILINGS DISTORT PRICING ACROSS THE BOARD WITH PRICES OF HIGHVALUE DRUGS TOO LOW AND LOWCOST DRUGS OFTEN HIGHER THAN THEY SHOULD BE A SIMPLE ASPIRIN IN BRUSSELS FOR EXAMPLE CAN COST 10 TIMES WHAT IT COSTS IN THE US WHARTON BUSINESS SCHOOL MEDICAL RESEARCHER PATRICIA M DANZON NOTES THAT ON AVERAGE DRUG PRICES IN THE US PER COMPARABLE DOSE ARE LOWER THAN IN CANADA GERMANY SWITZERLAND AND SWEDEN THE US OF COURSE IS ITSELF FAR FROM HAVING A FREE MARKET IN DRUGS NATIONAL HEALTH INSURANCE COVERS SOME 40 OF THE POPULATION AND PRIVATE HEALTH INSURANCE ALSO OFTEN INCLUDES THE PRICE OF DRUGS THE POINT BEING MADE HERE IS THAT THE PRESENCE OF A SINGLEPAYER SYSTEM OF HEALTH INSURANCE AND ATTRACTIVESOUNDING EFFORTS TO CONTROL PRICES DO NOT IN ANY WAY GUARANTEE LOWER DRUG COSTS THEY MERELY CREATE DISTORTIONS SOME OF WHICH ARE HIGHLY ADVERSE TO BOTH PATIENTS AND THE PHARMACEUTICAL INDUSTRY ONE SIDE EFFECT EUROPE LAGS WELL BEHIND BOTH THE US AND JAPAN IN DRUG RESEARCH PARTICULARLY THE TAPPING OF THE REMARKABLE POTENTIAL OF BIOTECHNOLOGY FOR LIFESAVING MEDICINES IN SHORT EUROPE HAS BEEN UNABLE TO RECONCILE ITS SOCIAL POLICIES WITH THE NEED FOR INNOVATION AND DEVELOPMENT 9404250047 940425 NIXON ON THE AGONY OF A CONSTITUTIONAL CRISIS' RICHARD NIXON'S BEHAVIOR DURING THE WATERGATE CRISIS MIGHT BE EXPLAINED IN PART BY HIS RESPONSE TO THOSE WHO URGED HIM TO CONTEST THE RESULTS OF THE CLOSE 1960 ELECTION WHICH HE LOST TO KENNEDY EARL MAZO OF THE NEW YORK HERALD TRIBUNE WAS PLANNING A 12PART SERIES ON FRAUD IN THAT ELECTION WHEN HE WENT TO SEE MR NIXON WHO TOLD HIM OUR COUNTRY CAN'T AFFORD THE AGONY OF A CONSTITUTIONAL CRISIS AND I DAMN WELL WILL NOT BE A PARTY TO CREATING ONE JUST TO BECOME PRESIDENT OR ANYTHING ELSE MR MAZO'S ACCOUNT OF THIS INCIDENT APPEARS IN NIXON A POLITICAL PORTRAIT POPULAR LIBRARY 1968 WHICH HE WROTE WITH STEPHEN HESS NEW YORK TIMES MAN TOM WICKER MAKES A NOTEWORTHY POINT REGARDING VOTE FRAUDS IN THE FOREWORD TO NEAL R PEIRCE'S SUPERB BOOK ON THE ELECTORAL COLLEGE THE PEOPLE'S PRESIDENT PUBLISHED IN 1968 A SHIFT OF ONLY 4480 POPULAR VOTES FROM KENNEDY TO NIXON IN ILLINOIS WHERE THERE WERE HIGHLY PLAUSIBLE CHARGES OF FRAUD EMPHASIS SUPPLIED AND 4491 IN MISSOURI WOULD HAVE GIVEN NEITHER MAN AN ELECTORAL MAJORITY AND THROWN THE DECISION INTO THE HOUSE OF REPRESENTATIVES WRITES WICKER IF AN ADDITIONAL 1148 VOTES HAD BEEN COUNTED FOR NIXON IN NEW MEXICO 58 FROM HAWAII AND 1247 IN NEVADA HE WOULD HAVE WON AN OUTRIGHT MAJORITY IN THE ELECTORAL COLLEGE AND WICKER ADDS ANY EXPERIENCED REPORTER OR POLITICIAN KNOWS THAT THAT FEW VOTES CAN EASILY BE SWUNG' IN ANY STATE BY FRAUD OR HONEST ERROR THE NEW YORK HERALD TRIBUNE HAD REACHED A SIMILAR CONCLUSION EARLIER ON THE BASIS OF INVESTIGATION BY ITS NATIONAL POLITICAL CORRESPONDENT EARL MAZO THE COAUTHOR OF THIS BOOK A WEEK AFTER THE ELECTION THE HERALD TRIBUNE CORRESPONDENT WENT TO AUSTIN TO GIVE A LECTURE AT THE UNIVERSITY OF TEXAS WHILE THERE HE TALKED TO SOME OLD FRIENDS IN THE TEXAS PRESS CORPS NEVER BEFORE HAD HE SEEN TEXAS POLITICAL REPORTERS SO FURIOUS AND INSULTING THEY WANTED TO KNOW DAMNIT WHY YOU SELFRIGHTEOUS AND OVERPAID NATIONAL POLITICAL CORRESPONDENTS WERE IGNORING WHAT WENT ON IN THEIR STATE THE PAPER'S CORRESPONDENT CONCEDED HE HAD SEEN HANDOUTS FROM REPUBLICANS HOLLERING FRAUD BUT THAT IS STANDARD OPERATING PROCEDURE FOR LOSERS OF EXCEEDINGLY CLOSE ELECTIONS AND USUALLY THE FACTS AS OFFERED BACK IN WASHINGTON HARDLY JUSTIFIED THE ALLEGATIONS BUT AT THE PRODDING OF HIS TEXAS COLLEAGUES THE NEW YORK NEWSPAPERMAN AGREED TO STAY AWHILE AND LOOK AROUND AN EXERCISE IN ELEMENTARY ARITHMETIC ADDING AND SUBTRACTING INDICATED THAT A MINIMUM OF 100000 VOTES OFFICIALLY TALLIED FOR THE KENNEDYJOHNSON TICKET SIMPLY WERE NONEXISTENT THE DEMOCRATS HAD CARRIED TEXAS BY A MARGIN OF 46000 VOTES SLIGHTLY LESS THAN ONE TWOHUNDREDTHS OF 1 PERCENT OF ALL THE VOTES COUNTED IN CHICAGO THE CHICANERY WHILE OLDFASHIONED WAS MORE SOPHISTICATED MOUNTAINS OF SWORN AFFADAVIT SIC BY POLL WATCHERS AND DISGRUNTLED VOTERS REPORTED SUCH INCIDENTS AS THESE WARD 4 PRECINCT 77 DEMOCRATIC PRECINCT CAPTAIN NAME LISTED VOTED TWICE GIVING HIS NAME FIRST TIME AS JAMES L WILLIAMS 4640 DREXEL SIGNATURE CARD NO 256 THIS OBSERVER SAW DEMOCRATIC PRECINCT CAPTION NAME LISTED HANDING MONEY OUTSIDE THE POLLING PLACE WARD 6 PRECINCT 38 AT ABOUT 1015 AM THE VOTING MACHINE INDICATOR INDICATED 121 VOTES HAD BEEN CAST AFTER 43 PERSONS HAD VOTED I THOUGHT HE MIGHT BE KIDDING BUT NEVER WAS A MAN MORE DEADLY SERIOUS WE CHATTED FOR AN HOUR OR TWO ABOUT THE CAMPAIGN THE ODD VOTE PATTERNS IN VARIOUS PLACES AND THIS AND THAT THEN CONTINENTBYCONTINENT HE ENUMERATED POTENTIAL INTERNATIONAL CRISES THAT COULD BE DEALT WITH ONLY BY THE PRESIDENT OF A UNITED COUNTRY AND NOT A NATION TORN BY THE KIND OF PARTISAN BITTERNESS AND CHAOS THAT INEVITABLY WOULD RESULT FROM AN OFFICIAL CHALLENGE OF THE ELECTION RESULT AT ONE POINT NIXON SAID CALMLY AS THOUGH TALKING TO HIMSELF OUR COUNTRY CAN'T AFFORD THE AGONY OF A CONSTITUTIONAL CRISIS AND I DAMN WELL WILL NOT BE A PARTY TO CREATING ONE JUST TO BECOME PRESIDENT OR ANYTHING ELSE THE HERALD TRIBUNE SERIES ON ELECTION FRAUDS WAS TO HAVE CONSISTED OF TWELVE ARTICLES BUT NIXON SUCCESSFULLY PLEADED THAT IT BE DISCONTINUED FOR THE SAKE OF NATIONAL UNITY STATE LAWS GOVERNING ELECTIONS VARY CONSIDERABLY AND FEW ARE SO WRITTEN AS TO ENCOURAGE ELECTION RECOUNTS GENERALLY THE PENALTY CLAUSES PROVIDE FOR PUNISHING THOSE FOUND GUILTY OF PARTICIPATING IN FRAUDS BUT THE COROLLARY REMEDY THAT IS OVERTURNING AN OFFICIALLY DECLARED PRESIDENTIAL VOTE COUNT IS ALMOST NONEXISTENT IT WOULD HAVE TAKEN AT LEAST A YEAR AND A HALF TO GET A RECOUNT IN COOK COUNTY ILLINOIS AND THERE WAS NO PROCEDURE WHATEVER FOR A LOSING CANDIDATE TO GET A RECOUNT IN TEXAS THE ODDS THAT NIXON COULD HAVE REVERSED THE RESULTS OR THROWN THE ELECTION INTO THE HOUSE OF REPRESENTATIVES WERE EXTREMELY LONG HOWEVER THE PRESSURE ON NIXON AS PARTY LEADER TO MAKE A CASE THAT THE REPUBLICANS COULD CARRY INTO THE 1962 AND 1964 ELECTIONS WAS FORMIDABLE BUT NIXON'S MIND WAS MADE UP 9404250046 940425 THE OUTLOOK PACE OF AUTO SALES FUEL FOR ECONOMY WILL SLOW BY ROBERT L SIMISON DETROIT TO HEAR AUTO EXECUTIVES TELL IT THE CAR BUSINESS IS ROLLING INTO A NICE LONG BOOM PRODUCING A BIG AND PROTRACTED BOOST FOR THE ECONOMY IN THE PROCESS PROFITS ARE PILING UP IN DETROIT THESE DAYS SO THE BIG THREE'S EUPHORIC OUTLOOK ISN'T SURPRISING BUT REMEMBER DETROIT HAS A LONG HISTORY OF UNDERESTIMATING THE BAD TIMES AND OVERESTIMATING THE GOOD ECONOMISTS OUTSIDE DETROIT ARE ALREADY OFFERING UP MORE CONSERVATIVE ALBEIT STILL POSITIVE FORECASTS BOTH FOR THE INDUSTRY AND ITS CONTRIBUTION TO ECONOMIC GROWTH THERE IS NO QUESTION AUTO SALES HAVE DONE A LOT TO POWER ALONG THE ECONOMY'S CURRENT EXPANSION THE MOTORVEHICLE SECTOR ACCOUNTS FOR ABOUT 45 OF THE NATION'S ECONOMIC OUTPUT CONTRIBUTING A HEFTY 250 BILLION A YEAR TO TOTAL GROSS DOMESTIC PRODUCT IT EMPLOYS MORE THAN 16 MILLION PEOPLE IN MORE THAN 4000 CAR TRUCK AND PARTS FACTORIES FROM ONE COAST TO THE OTHER IN LAST YEAR'S FOURTH QUARTER THE ECONOMY GREW 7 AND THE AUTO INDUSTRY CONTRIBUTED FULLY 15 TO TWO PERCENTAGE POINTS OF THAT GROWTH ECONOMISTS ARE SAYING THAT IF GROWTH IN THIS YEAR'S FIRST QUARTER COMES IN AT AN ANNUALIZED 3 AS MANY EXPECT THE AUTO INDUSTRY WILL HAVE ACCOUNTED FOR MORE THAN A THIRD OF THAT GROWTH BUT THE TURBOCHARGED PERIOD OF RISING AUTO SALES IS OVER CHIEFLY BECAUSE FACTORIES ARE NOW OPERATING PRETTY MUCH FLAT OUT SALES CAN INCH UP SOME BUT THEY WON'T SOAR EVER HIGHER LIKE THEY HAVE IN THE PAST SIX MONTHS FORD MOTOR CO'S MUSTANG PLANT IN SUBURBAN DEARBORN MICH SHOWS WHY IT HAS BEEN STRAINING TO CRANK OUT 760 CARS A DAY 36 MORE THAN A YEAR AGO AND HAS BEEN RUNNING MAXIMUM OVERTIME A LINESPEED INCREASE TODAY WILL BUMP PRODUCTION UP 12 IN SALT LAKE CITY CAR DEALER GERALD SEINER REPORTS THAT WHILE SALES SHOT UP 30 LAST YEAR THEY ARE RISING ABOUT 10 THIS YEAR THESE DAYS BUSINESS IS DICTATED MORE BY INVENTORY THAN SALES POTENTIAL HE SAYS IF WE GET A CAMARO IN WE KNOW IT'LL BE ON THE ROAD WITHIN 48 HOURS AND AT FERROUS PROCESSING & TRADING CO IN SOUTHWEST DETROIT A LOT MORE OLD CARS ARE TAKING THE TRIP THROUGH THE GIANT SHREDDER EACH TRANSFORMED IN 37 SECONDS INTO METAL FOR RECYCLING VOLUME IS UP 10 TO 15 FROM A YEAR AGO TO ABOUT 300 VEHICLES A DAY SAYS OWNER JEFFREY N COLE PROGNOSTICATORS LOOK AT SCRAPPERS FOR ONE IMPRECISE INDICATOR OF FUTURE CAR SALES REASONING THAT EACH CAR JUNKED REPRESENTS A FUTURE REPLACEMENT HOW ROBUST WILL AUTO SALES STAY AND HOW MUCH OF AN UNDERPINNING TO ECONOMIC GROWTH WILL THEY REMAIN BEFORE THIS CYCLE OF THE CAR BUSINESS INEVITABLY TURNS DOWN THAT'S WHERE DETROIT DIVERGES FROM WHAT ECONOMISTS ELSEWHERE SEE WE'RE LESS THAN HALFWAY THROUGH THE CYCLE MAINTAINS DONALD HILTY THE CHIEF ECONOMIST OF CHRYSLER CORP WHO IS THE MOST OPTIMISTIC BIG THREE SEER HE SEES SALES OF CARS AND LIGHT MEDIUM AND HEAVY TRUCKS HITTING 16 MILLION VEHICLES THIS YEAR UP 13 FROM 1993 BUT THAT ISN'T THE END OF IT MR HILTY GOES ON TO FORECAST SALES RISING ANOTHER MILLION VEHICLES NEXT YEAR AND HITTING 175 MILLION IN 1996 A TREMENDOUS PACE FOR DETROIT HE ARGUES THAT THE ECONOMIC SLUMP IN 19901992 CREATED HUGE PENTUP DEMAND AND THAT SATISFYING THAT DEMAND WILL SUSTAIN VEHICLE SALES AT HIGH LEVELS FOR SOME TIME TO COME ADDING TO THAT HE SAYS ARE SOME POSITIVE ECONOMIC TRENDS SUCH AS RISING HOUSEHOLD DISPOSABLE INCOME RISING CONSUMER CONFIDENCE AND YES HIGH SCRAPPAGE RATES WALL STREET SEEMS TO BE DISCOUNTING THE CYCLE TOO SOON HE MAINTAINS MR HILTY'S COUNTERPARTS AT FORD AND GENERAL MOTORS CORP CITE SIMILAR REASONS AND FORECAST THAT VEHICLE SALES WILL CONTINUE TO INCREASE BUT NOT QUITE AS MUCH AS CHRYSLER ENVISIONS FORD SEES SALES HITTING 155 MILLION VEHICLES THIS YEAR GM'S ECONOMIST GEORGE EADS HAS BEEN SUBSTANTIALLY MORE CONSERVATIVE BUT IS UNDERSTOOD TO BE REVISING HIS 1994 SALES FORECAST UPWARD THIS WEEK NEITHER FORD NOR GM IS PUBLICIZING THEIR 1995 OR 1996 FORECASTS THOUGH BOTH ARE OPTIMISTIC ABOUT THE INDUSTRY'S CONTINUING PERFORMANCE MR EADS CAUTIONS HOWEVER THAT RISING INTEREST RATES ARE A WILD CARD IF THEY GET HIGH ENOUGH SALES WOULD PROBABLY DROP OUTSIDE FORECASTING FIRMS PAINT A MORE CONSERVATIVE THOUGH STILL BULLISH PICTURE WEFA GROUP INC SEES SALES RISING 11 THIS YEAR TO 158 MILLION VEHICLES BEFORE TOPPING OUT AT 167 MILLION NEXT YEAR BUT THEN EASING TO 165 MILLION IN 1996 DRI/MCGRAWHILL ECONOMISTS SEE VEHICLE SALES PEAKING THIS YEAR AT 158 MILLION VEHICLES AND EASING TO 153 MILLION IN 1995 AND 149 MILLION IN 1996 AT THOSE RATES THE AUTO INDUSTRY OBVIOUSLY WOULD CONTINUE TO UNDERGIRD THE NATIONAL ECONOMY BUT THE ROLE THE SECTOR PLAYS IN GENERATING ADDITIONAL GROWTH WOULD BECOME SLIGHT AS SALES PLATEAU THE WEFA GROUP FOR EXAMPLE IS FORECASTING 3 GROWTH IN GDP THIS YEAR OF THAT IT EXPECTS A SCANT THIRD OF ONE PERCENTAGE POINT WILL BE DUE TO EXPANDING AUTOINDUSTRY ACTIVITY 9404250045 940425 BUSINESS BRIEF DNS KOREA CO THREE ASIAN COMPANIES JOIN SEMICONDUCTOR SYSTEMS PACT DNS KOREA CO A JOINT VENTURE OF SOUTH KOREA'S SAMSUNG ELECTRONICS CO AND TWO JAPANESE CONCERNS WILL START PRODUCTION OF EQUIPMENT FOR SEMICONDUCTORS IN MAY THE FIRST SUCH PRODUCTION IN SOUTH KOREA SAMSUNG SAID TWO JAPANESE COMPANIES ARE DNS CO WITH 30 EQUITY AND TOEI TONGSANG CO WITH 15 EQUITY ACCORDING TO SAMSUNG WHICH OWNS 55 OF THE EQUITY THE VENTURE WILL PRODUCE SPINNERS AND WET STATIONS EQUIPMENT NEEDED FOR THE MANUFACTURE OF LIQUIDCRYSTAL DISPLAY AND OTHER SEMICONDUCTORS THE COMPANY PLANS TO EXPAND ITS ANNUAL CAPACITY TO 50 UNITS FROM THE CURRENT 30 BY THE END OF 1997 THE COMPANY IS ALSO PLANNING TO EXPAND PRODUCTION OF LOCALLY MADE PARTS FOR THE EQUIPMENT TO 60 BY 1996 AND 80 BY 1998 9404250044 940425 THE MAN WHO NEVER QUIT BY STEPHEN E AMBROSE RICHARD MILHOUS NIXON 19131994 WANTED TO BE JUDGED BY WHAT HE ACCOMPLISHED BUT 200 YEARS FROM NOW WHEN HE WILL GET ONLY A PARAGRAPH OR TWO IN A HIGHSCHOOL HISTORY TEXTBOOK THE FIRST SENTENCE WILL READ RICHARD NIXON 37TH PRESIDENT RESIGNED FROM OFFICE BECAUSE OF THE WATERGATE SCANDAL IT WILL GO ON TO NOTE HIS OPENING TO CHINA HIS PIONEERING EFFORTS AT ESTABLISHING DETENTE AND HIS ROLE IN ENDING THE AMERICAN INVOLVEMENT IN VIETNAM THE BIG THREE OF HIS LONG LIST OF FOREIGN POLICY ACHIEVEMENTS BUT THE WATERGATE COVERUP THE RESIGNATION AND THE ACCEPTANCE OF A PARDON FOR HIS DEEDS WILL ALWAYS COME FIRST STILL WATERGATE WILL LOOK DIFFERENT AS TIME PASSES INDEED IT ALREADY DOES AS THE VARIOUS SCANDALS OF THE PAST 20 YEARS HAVE PUT WATERGATE IN A SOMEWHAT DIFFERENT PERSPECTIVE THERE CAN BE NO DIFFERENT PERSPECTIVE ON THE FACT OF RESIGNATION HOWEVER THIS ACT MADE MR NIXON UNIQUE AMONG OUR PRESIDENTS STILL THERE IS A GREAT DEAL MORE TO MR NIXON THAN WATERGATE HE IS THE PREMIER AMERICAN POLITICIAN OF THE SECOND HALF OF THE 20TH CENTURY HE WAS AT OR NEAR THE CENTER OF EVENTS FROM 1948 UNTIL HIS DEATH NO ONE ELSE HAD HIS LONGEVITY NOT EISENHOWER NOT DE GAULLE NOT CHURCHILL HIS POLICIES WERE MIDDLEOFTHEROAD HE SPOKE TO AND FOR THE MIDDLE CLASS WHENCE HE CAME YET MORE THAN ANY OTHER PRESIDENT MR NIXON PROVOKED AN EXTREME EMOTIONAL RESPONSE AN ALARMING NUMBER OF AMERICANS ACTIVELY HATED HIM ABOUT HALF THE PEOPLE ADMIRED AND IDENTIFIED WITH HIM PASSIONATELY BUT NOT EVEN HIS ADMIRERS LOVED HIM AS A COLLEGE CLASSMATE PUT IT HE WASN'T THE KIND OF GUY YOU WANTED TO GO BACKPACKING WITH HE WAS THE KIND OF GUY YOU VOTED FOR FROM JUNIOR HIGH SCHOOL THROUGH LAW SCHOOL MR NIXON RAN FOR EVERY PRESIDENCY AVAILABLE AND WON EVERY TIME MR NIXON WAS THE MOST PARTISAN OF OUR POLITICIANS IT WAS ALWAYS HIS AIM TO DIVIDE AND HE WAS SKILLFUL AT DOING SO FROM HIS FIRST CAMPAIGN FOR CONGRESS IN 1946 WHEN HE ACCUSED HIS OPPONENT OF HAVING COMMUNIST SUPPORT THROUGH HIS 1950 CAMPAIGN FOR THE SENATE WHEN HE CALLED HIS OPPONENT HELEN DOUGLAS THE PINK LADY RIGHT DOWN TO HER UNDERWEAR TO HIS VICEPRESIDENTIAL CAMPAIGN IN 1952 WHEN HE CALLED DEMOCRATIC CANDIDATE ADLAI STEVENSON A GRADUATE OF DEAN ACHESON'S COWARDLY COLLEGE OF COMMUNIST CONTAINMENT MR NIXON HAD ALWAYS BEEN A DEEPLY SUSPICIOUS AND CYNICAL MAN HIS CLOSE LOSS TO JOHN KENNEDY IN 1960 IN A BITTERLY CONTESTED ELECTION SWELLED HIS RESENTMENT AND ANGER IN 1962 HE LOST A CAMPAIGN FOR GOVERNOR OF CALIFORNIA THE MORNING AFTER HE TOLD THE PRESS JUST THINK WHAT YOU'LL BE MISSING GENTLEMEN YOU WON'T HAVE NIXON TO KICK AROUND ANYMORE THE REPORTERS RESPONDED BY DECLARING MR NIXON POLITICALLY DEAD WHAT MR NIXON KNEW AND THE REPORTERS DIDN'T WAS THAT MOST PEOPLE AGREED WITH HIM ABOUT THE IRRESPONSIBLE KNEEJERK LIBERAL PRESS WITHIN MINUTES OF THE LAST PRESS CONFERENCE HE BEGAN PLANNING HIS NEXT CAMPAIGN IT CAME IN 1968 WHEN HE DEFEATED HUBERT HUMPHREY AND GEORGE WALLACE THE DOMINANT ISSUE OF HIS FIRST ADMINISTRATION WAS VIETNAM MR NIXON SET OUT TO EXTRACT THE AMERICAN TROOPS WITHOUT SETTING OFF A CIVIL WAR WITHIN THE US AND WITHOUT HANDING OVER SOUTH VIETNAM TO THE COMMUNISTS HE ACHIEVED THE FIRST OBJECTIVE AND MIGHT HAVE ACHIEVED THE SECOND HAD IT NOT BEEN FOR WATERGATE IT WAS CHARGED THAT THE DEAL HE ACCEPTED IN 1973 COULD HAVE BEEN HAD IN 1969 WE CAN'T KNOW WE DO KNOW THAT IT IS ALMOST IMPOSSIBLE FOR A 20TH CENTURY LEADER FROM KAISER WILHEM II TO GORBACHEV TO LOSE A WAR AND STAY IN POWER MR NIXON'S SUPREME MOMENT CAME IN THE 1972 ELECTION WHEN HE WON WITH A LANDSLIDE BUT WITHIN THREE MONTHS THE WATERGATE SCANDAL WAS BREAKING AND OVER THE NEXT YEARANDAHALF HE WENT THROUGH AGONY MUCH OF IT SELFINFLICTED EVENTUALLY HE WAS DRIVEN FROM OFFICE IN DISGRACE BUT LIKE A CORK NO MATTER HOW MANY TIMES HE GOT PUSHED DOWN HE POPPED UP AGAIN THAT WAS ONE OF THE REASONS SO MANY PEOPLE ADMIRED HIM SO MUCH SOME SAID HE WAS SO PERSISTENT BECAUSE HE HAD NO SHAME OTHERS RECOGNIZED IT WAS BECAUSE HE WAS SO TOUGH HE WORKED SO HARD HE KNEW SO MUCH AND HE WAS SUCH A GREAT RISKTAKER HE ONCE TOLD BOB GREENE YOU'VE GOT TO TAKE GREAT RISKS AND LOSE IF NECESSARY AND MAYBE LOSE TWICE OR THREE TIMES AND KEEP COMING BACK THAT'S THE SECRET ON HIS LAST DAY IN OFFICE MR NIXON TOLD PRESS SECRETARY RON ZIEGLER A STORY ABOUT THE TIME HE WAS RUNNING A ONEMILE RACE IN SCHOOL AND THERE WERE 50 YARDS LEFT AND ONLY TWO COMPETITORS REMAINING WITH NOTHING AT STAKE BUT NEXT TO LAST PLACE STILL HE SPRINTED THOSE LAST 50 YARDS I HAVE NEVER QUIT BEFORE IN MY LIFE HE CRIED OUT YOU DON'T QUIT INSTEAD OF QUITTING HE SET OUT TO REHABILITATE HIMSELF TO A LARGE EXTENT HE SUCCEEDED WHAT NEARLY EVERYONE THOUGHT IMPOSSIBLE IN 1974 MR NIXON HAD ACHIEVED BY 1994 HE WAS A RESPECTED ELDER STATESMAN LIKE ALL HIS PREVIOUS CAMPAIGNS HIS LAST CAMPAIGN WAS CAREFULLY THOUGHT OUT HE BEGAN WITH HIS MEMOIRS BIG ENGROSSING FULL OF SURPRISES ADMITTING NO WRONGDOING A HUGE SUCCESS THEN HE WENT ON TELEVISION TO ANSWER QUESTIONS FROM DAVID FROST THE ONLY TIME HE ANSWERED QUESTIONS ON WATERGATE HE MADE HIS FIRST PUBLIC APPEARANCE IN A SMALL KENTUCKY TOWN HIS NEXT IN BILOXI MISS AND WAS REWARDED WITH LARGE ENTHUSIASTIC CROWDS FROM THERE HE MOUNTED A SERIES OF WELLRECEIVED FOREIGN TRIPS HE EVEN WENT BEFORE HIS FORMER TORMENTORS THE PRESS FOR SPEECHES AND QUESTIONS AND ANSWERS BUT HE NEVER CRAWLED ALL HIS POLITICAL LIFE HE BRAGGED THAT HE SCORNED THE EASY WAY WHICH UPON EXAMINATION ALWAYS PROVED TO BE THE WAY OF THE WEAK OF THE LIBERAL OR OF THE UNINFORMED OR SO HE SAID BUT AFTER AUG 9 1974 HE REALLY DID REJECT THE EASY WAY HE COULD HAVE RESURRECTED HIMSELF MUCH SOONER HAD HE ADMITTED WRONGDOING AND APOLOGIZED FOR IT THE AMERICAN PEOPLE YEARNED TO FORGIVE HIM BUT HE WOULD NOT LET THEM HIS PRIDE KEPT HIM FROM SAYING HE WAS SORRY BECAUSE HE WASN'T SORRY HE HAD DONE NOTHING HE WAS ASHAMED OF HE DID NOT WANT FORGIVENESS OR SYMPATHY OR UNDERSTANDING HE WANTED RESPECT HE EARNED IT THE HARD WAY MR NIXON'S WAY HOW WILL HISTORY RATE HIM HE WANTED TO BE KNOWN AS A GREAT PRESIDENT AND HE CAME CLOSE BUT HE DIDN'T MAKE IT STILL HIS REPUTATION IS SURE TO GO UP OVER TIME JUST AS HARRY TRUMAN'S HAS RISEN WHAT WILL STAND OUT ABOUT MR NIXON IS HIS FOREIGN POLICY OF COURSE WHERE HE WAS INNOVATIVE AND INSIGHTFUL ON THE DOMESTIC FRONT THE STORY IS WHAT MIGHT HAVE BEEN IN HIS SECOND TERM MR NIXON PROPOSED PROGRAMS THAT HE DARED TO CALL NOTHING LESS THAN A NEW AMERICAN REVOLUTION HIS PROGRAM INCLUDED GOVERNMENT REORGANIZATION HEALTH INSURANCE FOR ALL MORE REVENUE SHARING JUST AT THE TIME THE CITIES WERE LOSING THEIR TAX BASE AN EXPANDED STUDENT LOAN PROGRAM ENERGY INDEPENDENCE FOR THE US A BALANCED BUDGET ENVIRONMENTAL REPAIR WELFARE REFORM AND A MYRIAD OF OTHER PROGRAMS THAT ARE STILL BEING DEBATED TWO DECADES LATER MR NIXON WANTED TO BECOME RICHARD THE GREAT HE WANTED NOTHING SHORT OF WORLD PEACE AND A PROSPEROUS HAPPY AMERICA HE WAS BROUGHT DOWN BY HIS OWN HUBRIS BY HIS OWN ACTIONS BY HIS OWN CHARACTER THIS IS TRAGEDY WHENEVER MR NIXON LAPSED INTO SELFDESCRIPTION HE TALKED ABOUT STRUGGLE IT WAS STRUGGLE THAT GAVE LIFE MEANING NOT VICTORY GIVEN THAT HE NEVER ABANDONED THE STRUGGLE IT CAN BE ASSUMED THAT HE DIED A HAPPY MAN A MAN AT PEACE WITH HIMSELF MR AMBROSE IS THE AUTHOR OF A THREEVOLUME BIOGRAPHY OF RICHARD NIXON 9404250043 940425 BUSINESS BRIEF ARMCO INC STEELMAKER TO CUT 200 JOBS IN ITS SALARIED WORK FORCE ARMCO INC SAID IT WILL CUT ABOUT 200 SALARIED POSITIONS OR 3 OF ITS TOTAL WORK FORCE IN AN EFFORT TO ELIMINATE REDUNDANCIES BETWEEN CORPORATE AND PLANT ADMINISTRATIVE POSITIONS THE SPECIALTY STEELMAKER PROJECTED THAT THE CUTS WOULD SAVE ABOUT 15 MILLION A YEAR AFTER THEY'RE COMPLETED IN THE FALL AT ITS ANNUAL MEETING ARMCO ALSO NAMED JOHN C HALEY 64 YEARS OLD CHAIRMAN MR HALEY'S APPOINTMENT IS FOR A ONEYEAR TERM DURING WHICH ARMCO'S BOARD WILL STUDY THE CONCEPT OF A NONEXECUTIVE CHAIRMAN MR HALEY AN ARMCO BOARD MEMBER SINCE 1975 IS RETIRED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CLOSELY HELD BUSINESS INTERNATIONAL CORP HE SUCCEEDS ROBERT L PURDUM 58 WHO RETIRED IN ADDITION ARMCO NAMED BRUCE E ROBBINS 49 AND JOHN D TURNER 48 TO ITS BOARD MR ROBBINS IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PNC BANK NA A UNIT OF PNC BANK CORP MR TURNER IS PRESIDENT AND CHIEF EXECUTIVE OF COPPERWELD CORP WITH MR PURDUM'S RETIREMENT ARMCO'S BOARD NOW HAS NINE MEMBERS 9404250042 940425 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL FARM CREDIT BANK 75 MILLION OF NOTES DUE APRIL 29 1997 PRICED AT PAR TO YIELD 625 ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR ONE YEAR WAS PRICED AT A SPREAD OF 30 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BA SECURITIES INC HEARTLAND WIRELESS COMMUNICATIONS INC INITIAL OFFERING OF 21 MILLION COMMON SHARES PRICED AT 1050 EACH THROUGH UNDERWRITERS LED BY GERARD KLAUER MATTISON & CO IVI PUBLISHING INC INITIAL OFFERING OF 18 MILLION COMMON SHARES PRICED AT 18 EACH THROUGH UNDERWRITER INVEMED ASSOCIATES INC MICROELECTRONIC PACKAGING INC INITIAL PUBLIC OFFERING OF 16 MILLION COMMON SHARES PRICED AT 5 EACH THROUGH UNDERWRITER THOMAS JAMES ASSOCIATES CREDIT LOCAL DE FRANCE FRENCH AGENCY 350 MILLION DUTCH GUILDERS OF 675 EUROBONDS DUE MAY 13 2004 AT ISSUE PRICE 9925 VIA ABN AMRO BANK NV REOFFERED AT 98575 TO YIELD 6952 A SPREAD OF 30 BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES ONE MITSUBISHI CORP FINANCE PLC JAPANESE PARENT FIVE BILLION YEN OF 34 EUROBONDS DUE MAY 12 1997 OFF EURO MEDIUMTERM NOTE PROGRAM AT ISSUE PRICE PAR VIA IBJ INTERNATIONAL LTD FEES 01875 9404250041 940425 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 442 180 TO 239 DAYS 460 240 TO 259 DAYS 470 260 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 387 30 DAYS 4 60 DAYS 413 90 DAYS CERTIFICATES OF DEPOSIT 332 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 382 ONE MONTH 4125 THREE MONTHS 450 SIX MONTHS BANKERS ACCEPTANCES 376 30 DAYS 386 60 DAYS 401 90 DAYS 412 120 DAYS 423 150 DAYS 433 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 7/8 3 3/4 ONE MONTH 4 1/16 3 15/16 TWO MONTHS 4 1/4 4 1/8 THREE MONTHS 4 3/8 4 1/4 FOUR MONTHS 4 1/2 4 3/8 FIVE MONTHS 4 5/8 4 1/2 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 15/16 ONE MONTH 4 1/4 THREE MONTHS 4 5/8 SIX MONTHS 5 1/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 675 GERMANY 547 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 18 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 376 13 WEEKS 421 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 822 60 DAYS 833 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4875 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 827 60 DAYS 836 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 630 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 298 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9404250040 940425 BUSINESS BRIEF KELLOGG CO FIRSTQUARTER NET ROSE 26 TO A RECORD SALES GREW 6 KELLOGG CO REPORTED RECORD FIRSTQUARTER EARNINGS OF 1839 MILLION UP 26 DESPITE A HIGHER TAX RATE AND LOWER US BREAKFASTCEREAL SALES THAT THE BATTLE CREEK MICH COMPANY SAID REFLECTED INTENSE COMPETITION WORLDWIDE CEREAL VOLUME ROSE 2 DURING THE PERIOD IN WHICH KELLOGG ACHIEVED SALES OF 16 BILLION UP 6 PERSHARE EARNINGS TOTALED 81 CENTS COMPARED WITH 76 CENTS A YEAR AGO THE LATEST RESULTS INCLUDE A SIXCENT PERSHARE GAIN FROM THE SALE OF ITS FROZENPIE BUSINESS AND AN OFFSETTING CHARGE TO FUND A CORPORATE CITIZENSHIP CHARITABLE TRUST A COMPANY SPOKESMAN SAID THE TRUST GIVES KELLOGG MORE FLEXIBILITY IN THE TIMING OF ITS CORPORATE GIVING AND ALLOWS IT TO BETTER OFFSET EXTRAORDINARY GAINS BUT DOES NOT REPRESENT AN INCREASE IN CORPORATE PHILANTHROPY 9404250039 940425 LEISURE & ARTS TELEVISION TWO TALES OF STRONGWILLED WOMEN BY ROBERT GOLDBERG ONCE AGAIN IT'S TIME FOR BOSOMS TO HEAVE SHOTS TO RING OUT UFOS TO LAND CELEBS TO GUEST STAR AND BLOOD TO FLOW THAT'S RIGHT TV AFICIONADOS IT'S SWEEPS SEASON WHEN THE NETWORKS OFFER UP THEIR VERY BEST FOR THE DISCRIMINATING VIEWER THIS YEAR MAY SWEEPS SEASON BEGINS ON THURSDAY APRIL 28 FOR REASONS TOO ARCANE FOR EVEN AC NIELSEN TO EXPLAIN AND THIS YEAR THE PROGRAMMING SPEAKS FOR ITSELF BOTH DONALD AND MARLA TRUMP WILL GUEST STAR ON FRESH PRINCE OF BEL AIR AMERICA'S MOST WANTED WILL COMMEMORATE ITS 300TH CAPTURE OF A FUGITIVE NBC WILL PRESENT THE MADEFORTV MOVIE OF AMERICA'S FAVORITE ICE CAPADE THE NANCY AND TONYA STORY AND TO TOP IT ALL OFF THERE ARE A COUPLE OF PRETTY GOOD EPISODES OF FRASIER SWEEPS SEASON ALSO BRINGS OUT THE XCHROMOSOME TELEEVENTS THE MOVIES IN WHICH ALL THE EXCITING CAR CHASES ARE REPLACED BY MEANINGFUL RELATIONSHIPS A PLACE FOR ANNIE ABC SUNDAY MAY 1 911 PM EDT IS A CLASSIC EXAMPLE OF THE GENRE THE OPENING SHOT IS PARADIGMATIC PANNING AS IT DOES FROM TEDDY BEARS TO IV BAGS AND THEN OVER TO SWEET LITTLE BABIES IN A PEDIATRIC INTENSIVECARE WARD SISSY SPACEK RETURNS TO NETWORK TV FOR THE FIRST TIME IN TWO DECADES TO PLAY SUSAN LANSING A SUPERVISING NURSE IN A NEONATAL INTENSIVECARE UNIT WHO COMES FACE TO FACE WITH THE HOSPITAL'S FIRST HIVPOSITIVE BABY AN INFANT ABANDONED BY ITS MOTHER AGAINST THE ADVICE OF HER FRIENDS HER COLLEAGUES AND HER TEENAGE SON DAVID JACK NOSEWORTHY SHE BECOMES ATTACHED TO THE BABY ANNIE THIS OF COURSE IS THE OPPORTUNITY FOR MUCH SPEECHIFYING ALL AROUND THIS BABY IS GONNA DIE ANNOUNCES ONE NURSE ALL THE HUMAN CONTACT IN THE WORLD ISN'T GONNA CHANGE THAT RETORTS SUSAN BECAUSE SHE MIGHT DIE SHE SHOULDN'T BE TOUCHED OR HELD OR LOVED AND WHILE SUSAN IS WARNED THAT SHE'S ASKING FOR A BROKEN HEART YOU KNOW SHE'S GOING TO TAKE THAT BABY HOME IT TURNS OUT NOT TO BE SO EASY TO FIND A BABYSITTER EAGER TO HEAR THE WORDS BODILY FLUIDS AND RUBBER GLOVES IN THE SAME SENTENCE BUT EVENTUALLY THE DELIGHTFULLY IMPERIOUS DOROTHY KILGORE JOAN PLOWRIGHT ARRIVES AFTER MANY EARNEST LECTURES THIS MOVIE TAKES ITS EDUCATIONAL FUNCTION SERIOUSLY AND IS FREQUENTLY ASKING QUESTIONS SUCH AS SHE DOESN'T HAVE AIDS SHE HAS THE VIRUS THAT CAUSES AIDS DO YOU KNOW THE DIFFERENCE AND SEVERAL EMOTIONAL SHOUTING MATCHES YOU'RE BLOWING IT MOM LIFE AT THE LANSING HOME SETTLES DOWN THEN THE BABY'S REAL MOTHER SHOWS UP A PETULANT MINISKIRTED CHAIN SMOKER NAMED LINDA MARYLOUISE PARKER SHE'S LONG ON MAKEUP SHORT ON BABYHANDLING SKILLS BUT SHE WANTS ANNIE BACK AND DESPITE ALL OF SUSAN'S LOVE AND HARD WORK IT LOOKS LIKE THE COURTS WILL GRANT LINDA CUSTODY SUDDENLY WE'RE GETTING TWO DRAMAS FOR THE PRICE OF ONE AIDS BABY PLUS BABY JESSICA REST ASSURED THERE'LL BE PLENTY OF EMOTIONAL GROWTH PLENTY OF SACRIFICES AND TEARS ENOUGH TEARS FOR THE FULL BOX OF KLEENEX BEFORE THIS ONE GETS SORTED OUT PACKED WITH SINCERITY AND GOOD INTENTIONS MORE THAN A TRIFLE OVERWROUGHT ANNIE DOES OFFER A COUPLE OF GENUINE PLEASURES THE WONDERFULLY NONONSENSE MS PLOWRIGHT AND MS SPACEK AS ALWAYS ALL FRECKLES AND WHOLESOME TENDERNESS WHILE A PLACE FOR ANNIE TOUCHES ON THE TRAGIC PLAGUE OF AIDS ULTIMATELY IT'S A STORY OF REDEMPTION JUST AS WARM AND FUZZY AS YOUR FAVORITE FLANNEL NIGHTGOWN OLDEST LIVING CONFEDERATE WIDOW TELLS ALL CBS SUNDAY MAY 1 AND TUESDAY MAY 3 911 PM EDT IS ALSO A WOMAN'S TALE A SAGA THAT SPANS MORE THAN A CENTURY FROM THE BATTLES OF THE CIVIL WAR TO A NURSING HOME IN THE NEW SOUTH BUILT ON FLASHBACK WITHIN FLASHBACK THIS TWOPART MINISERIES ADAPTED FROM ALLAN GURGANUS'S NOVEL LOOKS OVER THE LIFE OF LUCY MARSDEN DIANE LANE IS THE YOUNGER LUCY AND THE FEISTY ANNE BANCROFT IS THE OLDER LUCY WHO AT THE TENDER AGE OF 14 IN A FIT OF REBELLION MARRIES CAPT WILLIAM MARSDEN DONALD SUTHERLAND A 50YEAROLD CIVIL WAR VETERAN FOR THE NEXT FOUR DECADES SHE WILL HELP HIM BEAR THE PSYCHIC SCARS HE BROUGHT HOME FROM ANTIETAM AND THE WAR AS SHE MATURES FROM NAIVE SCHOOLGIRL TO WIFE AND MOTHER WITH THE AID OF CASTALIA CICELY TYSON THE CAPTAIN'S HOUSEKEEPER AND FORMER SLAVE DESPITE THE SURFACE SIMILARITY TO THE WOMAN OF SUBSTANCE GENRE OLDEST LIVING CONFEDERATE WIDOW IS LESS THE PLOTDRIVEN EPIC MORE AN AMBITIOUS IDIOSYNCRATICALLY EPISODIC TALE OF MEMORY AND LOSS WHICH IS BOTH ITS STRENGTH AND ITS WEAKNESS RUNNING OVER TWO NIGHTS THIS SPRAWLING UNTIDY PORTMANTEAU NARRATIVE DOESN'T EXACTLY GO ANYWHERE LUCY GETS MARRIED HAS A FEW KIDS HER HUSBAND DIES AND SKIPPING HALF HER LIFE SHE EVENTUALLY MOVES INTO A NURSING HOME LIKE THE BOOK THE MINISERIES IS FUNDAMENTALLY A STORY ABOUT STORYTELLING ABOUT THE WAY THE BURDENS AND SWEET SOUVENIRS OF THE PAST TRAVEL WITH US THROUGH THE YEARS CLAMORING TO BE RETOLD AND RELIVED IT'S LUCY'S VOICE THAT DOMINATES THE NOVEL LUCY'S WORDS THAT SPARKLE AND SURGE ACROSS THE DECADES LUCY CHATS SHE RAMBLES SHE SPINS YARNS A SOUTHERN BELLE AT THE AGE OF 100 STILL VIBRANT STILL CAUSTIC BUT WHILE EXECUTIVE PRODUCERS FRANK KONIGSBERG AND LARRY SANITSKY AND SCREENWRITER JOYCE ELIASON MAKE A GOODFAITH EFFORT HERE WITH THE OCCASIONAL VOICEOVER LUCY'S NARRATION THE MOST DISTINCTIVE PART OF THE BOOK IS A CASUALTY OF THE TRANSFER FROM PAGE TO SCREEN WHAT THIS MINISERIES DOES HAVE TO OFFER IS AN ABUNDANCE OF ACTING TALENT BLYTHE DANNER AS LUCY'S MOTHER CONSUMED WITH THE DICTATES OF PROPRIETY MS TYSON AS LUCY'S SNAPPISH MAID AND SURROGATE MOTHER EG MARSHALL AND GWEN VERDON AS HER COMPANIONS OF OLD AGE ALL ARE STRONGLY DEFINED SUPPORTING CHARACTERS MS LANE AND MS BANCROFT BEAR THE BURDEN OF MEMORY AS LUCY AND MR SUTHERLAND STANDS OUT AS THE BEARDED CAPT MARSDEN BY TURNS GENTLE AND POSSESSED HAUNTED BY THE PAST WHEN HE SET OFF TO WAR AS A YOUNG BOY OF 13 AND LOST HIS ONE FRIEND IN THE WORLD TO A SNIPER'S BULLET AT ITS BEST AND AT ITS WORST OLDEST LIVING CONFEDERATE WIDOW TELLS ALL IS A RIVER OF MEMORIES WINDING ITS WAY DOWN THROUGH THE YEARS AS SWEET AND AS MELANCHOLY AS THE SCENT OF MAGNOLIA BLOSSOMS 9404250038 940425 BUSINESS BRIEF CATALINA MARKETING CORP ELECTRONIC INSTORE TRACKER TO TAKE 43 MILLION CHARGE CATALINA MARKETING CORP WILL TAKE A CHARGE OF 43 MILLION OR 25 CENTS A SHARE AGAINST FISCAL 1994 EARNINGS SAID GEORGE OFF PRESIDENT AND CHIEF OPERATING OFFICER CATALINA IS A ST PETERSBURG FLA ELECTRONIC INSTORE MARKETING COMPANY THE CHARGE TO BE TAKEN IN THE FOURTH QUARTER IS LINKED TO THE STARTUP OF CATALINA ELECTRONIC CLEARING SERVICES A COUPONCLEARING SERVICE FOR THE FOURTH QUARTER ENDED MARCH 31 MR OFF SAID CATALINA WILL REPORT EARNINGS OF 19 MILLION TO 22 MILLION OR 18 CENTS TO 22 CENTS A SHARE AFTER THE CHARGE THE COMPANY REPORTED EARNINGS OF 11 MILLION OR 12 CENTS A SHARE A YEAR EARLIER REVENUE FOR THE FOURTH QUARTER WAS UP ABOUT 44 TO ABOUT 269 MILLION OFF SAID FOR FISCAL 1994 CATALINA WILL REPORT EARNINGS OF 115 MILLION TO 121 MILLION 9404250037 940425 LEISURE & ARTS THEATER REPENTANCE AND REDEMPTION BY MELANIE KIRKPATRICK NEW YORK THE ROYAL SHAKESPEARE COMPANY PROBABLY THE GREATEST THEATRICAL TROUPE PERFORMING IN THE ENGLISH LANGUAGE HAS TRANSPORTED ITS ACCLAIMED PRODUCTION OF THE WINTER'S TALE TO AMERICA WHERE IT IS GRACING STAGES IN NEW YORK BROOKLYN ACADEMY OF MUSIC AND WASHINGTON DC KENNEDY CENTER ONE OF SHAKESPEARE'S LATE PLAYS THE WINTER'S TALE IS THE WORK OF A MATURE MAN WHO HAS GRAPPLED WITH LIFE AND UNDERSTANDS THE CURATIVE POWER OF TIME THE HANDSOME RSC PRODUCTION IS AN UPLIFTING AND BEWITCHING ACHIEVEMENT HALF TRAGEDY HALF COMEDY THE WINTER'S TALE IS EXTRAORDINARILY DIFFICULT TO STAGE SUCCESSFULLY WITHOUT MAKING IT SEEM LIKE TWO SEPARATE PLAYS THE FIRST HALF IS THE HORRIFIC STORY OF THE JEALOUS LEONTES KING OF SICILIA WHO WRONGLY BELIEVES HIS WIFE HERMIONE HAS BETRAYED HIM WITH HIS DEAREST FRIEND POLIXENES KING OF BOHEMIA TOO LATE APOLLO'S ORACLE REVEALS HERMIONE'S INNOCENCE THE KING AND QUEEN'S YOUNG SON MAMILLIUS IS DEAD THEIR NEWBORN DAUGHTER BANISHED AND THE QUEEN HERSELF APPARENTLY DEAD OF GRIEF ALSO DEAD IS LEONTES' TRUSTED COURTIER ANTIGONUS WHO MEETS HIS DEMISE OFFSTAGE FOLLOWING THE MOST FAMOUS STAGE DIRECTION IN THE ENGLISH THEATER EXIT PURSUED BY A BEAR WITH ANTIGONUS AND THE BEAR HERE A TOWERING FANGED BRUIN THAT IS ALL TOO REALISTIC ALSO EXITS THE TRAGEDY SIXTEEN YEARS PASS AND WE ARE TRANSPORTED TO BOHEMIA AND A BLITHE BAWDY COMEDY THE LOST PRINCESS PERDITA HAS BEEN BROUGHT UP BY A SHEPHERD AND IS IN LOVE WITH POLIXENES' SON THE YOUNG PRINCE FLORIZEL IT IS NOW THE TURN OF THE WRONGED KING POLIXENES TO BE CONSUMED WITH JEALOUSY IN DISGUISE HE SPIES ON HIS SON WHO IS INTENT ON MARRYING THE APPARENTLY LOWBORN PERDITA THEY FLEE TO SICILIA WHERE PERDITA'S TRUE IDENTITY IS REVEALED AND WONDER OF WONDERS HERMIONE LONG BELIEVED DEAD IS REUNITED WITH THE PENITENT LEONTES IT IS A HAPPY ENDING BUT ONE SUFFUSED WITH THE MEMORY OF THE CHILD AND THE COURTIER WHO DIED AS A RESULT OF LEONTES' ERROR OVER THE CENTURIES VARIOUS PRODUCERS HAVE CUT AND SPLICED AND RADICALLY REORGANIZED THE PLAY TRYING TO MAKE SENSE OF IT PART OF WHAT MAKES THE RSC'S PRODUCTION SO SUCCESSFUL IS THAT THE DIRECTOR ADRIAN NOBLE HAS MANAGED TO BRIDGE THE GAP IN TONE THE UNREALISTIC PLOT WILL NEVER BE BELIEVABLE IN A LITERAL SENSE A WIFE WOULD HAVE TO BE INORDINATELY CRUEL TO HIDE FROM HER REPENTANT HUSBAND FOR 16 YEARS BUT UNDER MR NOBLE'S DIRECTION IT IS PSYCHOLOGICALLY SO IN FACT FOR A MODERN AUDIENCE KING LEONTES PURSUED ONLY BY HIS OWN INNER DEMONS MAY BE A MORE TRAGIC FIGURE THAN OTHELLO EGGED ON BY IAGO MUCH OF THE SUCCESS OF THE RSC PRODUCTION IS DUE TO THE DESIGNER ANTHONY WARD WHO HAS CREATED A STUNNING LOOK IN SICILIA THE STAGE IS ENCIRCLED BY BROODING DARK CLOUDS THAT GIVE WAY IN BOHEMIA TO CHEERFUL BLUE SKIES AND WISPS OF CLOUDS WHEN THE ORACLE'S MESSAGE IS REVEALED A THUNDERSTORM ERUPTS SENDING BLACK UMBRELLAS SPINNING FROM THE STAGE IN A FEROCIOUS WHIRLWIND THE STORM SWIRLS INTO THE NEXT SCENE ON THE COAST OF LANDLOCKED BOHEMIA GEOGRAPHY WASN'T SHAKESPEARE'S STRONG SUIT WHERE ANTIGONUS IS ABOUT TO ABANDON THE INFANT PERDITA BUT IT IS MR WARD'S BALLOONS THAT CATCH THE EYE MOST THEY TURN UP IN ALL BUT THE DARKEST SCENES REASSURING SYMBOLS OF GAIETY A SOLITARY ACTOR SOMBERLY REMOVES THEM FROM THE STAGE AFTER LEONTES' MADNESS TAKES HOLD AND THEY DON'T REAPPEAR UNTIL THE COMEDY BEGINS IN FULL FORCE WITH THE ARRIVAL OF AUTOLYCUS THE COMIC GENIUS WHO PRESIDES OVER THE PLAY'S SECOND HALF THE BALLOONS TURN UP AS PROPS TOO THE PLAY OPENS WITH MAMILLIUS PEERING INTO A BALLOONLIKE GLASS ORB AS IF THE STORY ABOUT TO UNFOLD COMES FROM HIS CRYSTAL BALL LATER THE DOOMED MAMILLIUS CHASES A BALLOON ACROSS THE STAGE IN BOHEMIA EACH OF THE BUMPKINS IN A FERTILITY DANCE CARRIES A STRATEGICALLY PLACED PAIR OF BALLOONS ALONG WITH AN UPRIGHT BROOM THE ACTING AS MIGHT BE EXPECTED FROM THE RSC IS VERY FINE JOHN NETTLES PLAYS LEONTES MORE QUIETLY THAN MOST ACTORS PROBABLY DO FOR ME HIS RAGE IS MADE ALL THE MORE INTENSE FOR THAT RESTRAINT SUZANNE BURDEN IS A STATELY HERMIONE MARK HADFIELD PLAYS AUTOLYCUS WITH JUST THE RIGHT MIXTURE OF GUILE AND GOODHEARTEDNESS GRAHAM TURNER THE YOUNG SHEPHERD MAKES A LOVABLE YOKEL MY FAVORITE PERFORMANCE IS THAT OF THE VIGOROUS TAKECHARGE GEMMA JONES AS PAULINA A LADY WHO RUSHES HELLBENT TO HERMIONE'S DEFENSE IN THE END THE WINTER'S TALE IS ABOUT TWO CONCEPTS THAT HAVE LITTLE CURRENCY IN OUR SKEPTICAL AGE REPENTANCE AND THE POSSIBILITY OF REDEMPTION IN THIS UPLIFTING PRODUCTION THEY BRING TEARS TO THE EYES AND MAKE THE HEART SOAR I RARELY WRITE ABOUT PLAYS THAT HAVE CLOSED BUT I CAN'T RESIST SAYING A WORD ABOUT THE DAY THE BRONX DIED TO MY MIND ONE OF THE FINEST AND MOST AMBITIOUS PLAYS OF THE YEAR WRITTEN BY MICHAEL HENRY BROWN IT IS AN EXTRAORDINARILY POWERFUL DRAMA ABOUT A BLACK TEENAGER IN THE BRONX IN 1968 A TIME WHEN THIS NOWRAVAGED NEIGHBORHOOD WAS JUST APPROACHING THE GATES OF HELL NOT ONLY IS THIS A GRIPPING STORY ABOUT ONE DETERMINED BOY WHO MADE IT OUT OF THERE IT IS ALSO A COURAGEOUS UNSENTIMENTAL LOOK AT RACE POVERTY CRIME AND ANTISEMITISM SUBJECTS THAT ARE TOO HOT FOR MOST PLAYWRIGHTS TO HANDLE AND TOO CONTROVERSIAL FOR MOST PRODUCERS TO RISK THE DAY THE BRONX DIED RECENTLY ENDED A BRIEF RUN AT THE AMERICAN JEWISH THEATRE UNDER THE DIRECTION OF GORDON EDELSTEIN WHO STAGED WONDERS ON THE THEATER'S TINY BARE STAGE IT DESERVES TO FIND A NEW LIFE SOMEWHERE ELSE 9404250036 940425 BUSINESS BRIEF BETA WELL SERVICE LTD APPROVAL GAINED FOR VENTURE IN THE FORMER SOVIET UNION BETA WELL SERVICE LTD LEDUC ALBERTA SAID IT RECEIVED FINAL APPROVALS TO PROCEED WITH THE ACQUISITION OF 50 INTERESTS IN TWO PETROLEUM JOINT VENTURES IN THE FORMER SOVIET UNION FROM QUEST PETROLEUM GROUP THE OILFIELD SERVICES COMPANY SAID THAT AS A RESULT IT IS NOW IN A POSITION TO MOBILIZE PERSONNEL AND EQUIPMENT FOR THE VENTURES LOCATED IN RUSSIA'S KOMI REPUBLIC AND IN THE REPUBLIC OF KAZAKHSTAN BETA EARLIER ESTIMATED THE VALUE OF THE QUEST TRANSACTION AT 27 MILLION IT INCREASES BETA'S COMMON SHARES OUTSTANDING BY TWO MILLION SHARES TO ABOUT NINE MILLION SHARES AND MAKES QUEST AND ITS PARENT MANNAI CORP A CLOSELY HELD QATAR COMPANY A MAJOR SHAREHOLDER IN BETA WITH ROUGHLY A 222 INTEREST BETA ALSO SAID ITS BOARD APPOINTED FORMER MANNAI EXECUTIVE RALPH HARRISON TO THE NEW POSITION OF MANAGING DIRECTOR OF INTERNATIONAL OPERATIONS 9404250035 940425 BUSINESS BRIEF HUNTINGTON BANCSHARES INC CINCINNATIAREA BANK SIGNS PACT TO ACQUIRE COMPETITOR HUNTINGTON BANCSHARES INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE FIRSTFED NORTHERN KENTUCKY BANCORP INC IN A TRANSACTION VALUED AT 33 MILLION UNDER THE AGREEMENT SHAREHOLDERS OF FIRSTFED WOULD GET 4316 A SHARE IN HUNTINGTON STOCK FOR EACH SHARE OF FIRSTFED THE ACQUISITION IS EXPECTED TO BE COMPLETED IN THE THIRD QUARTER OF 1994 SUBJECT TO APPROVALS THE ACQUISITION STRENGTHENS HUNTINGTON'S MARKET PRESENCE IN THE FASTGROWING CINCINNATI REGION AFTER THE ACQUISITION HUNTINGTON WOULD BECOME THE SECONDLARGEST BANK IN NORTHERN KENTUCKY MEASURED BY DEPOSITS FIRSTFED IS A THRIFT HOLDING COMPANY WITH ASSETS OF 226 MILLION BASED IN COVINGTON KY HUNTINGTON OF COLUMBUS OHIO IS A REGIONAL BANK HOLDING COMPANY WITH ASSETS OF 165 BILLION 9404250034 940425 AMERICA WEST'S NET ROSE SEVENFOLD IN FIRST QUARTER BY CAROLYN PHILLIPS STAFF REPORTER OF THE WALL STREET JOURNAL PHOENIX AMERICA WEST AIRLINES REPORTED A SEVENFOLD INCREASE IN FIRSTQUARTER NET INCOME BUT A POTENTIAL HURDLE TO THE CARRIER'S REORGANIZATION PLAN REMAINS UNRESOLVED THE COMPANY WHICH HAS OPERATED UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE FOR ALMOST THREE YEARS SAID ITS FIRSTQUARTER NET INCOME JUMPED TO 152 MILLION OR 56 CENTS A SHARE FROM 21 MILLION OR NINE CENTS A SHARE REVENUE FOR THE PERIOD ROSE 9 TO 3453 MILLION FROM 3166 MILLION IN ADDITION THE COMPANY SAID ITS CASH POSITION IMPROVED BY MORE THAN A HALF DURING THE QUARTER AMERICA WEST SAID IT HAD 1515 MILLION IN CASH AT THE END OF MARCH UP SHARPLY FROM 996 MILLION ON DEC 31 1993 OUR FIRST QUARTER RESULTS CLEARLY SURPASSED OUR EXPECTATIONS AND WE ARE ENCOURAGED BY WHAT WE SEE FOR THE SECOND QUARTER SAID WILLIAM A FRANKE AMERICA WEST'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN A STATEMENT A MAURICE MYERS THE COMPANY'S PRESIDENT AND CHIEF OPERATING OFFICER ADDED THAT THE RESULTS CAN BE ATTRIBUTED IN PART TO A STABLE ECONOMIC ENVIRONMENT FAVORABLE FUEL PRICES AND CONTINUED SUPPORT FROM CONSUMERS AND TRAVEL AGENTS AMERICA WEST'S IMPROVEMENT IN PROFIT FOR THE FIRST QUARTER USUALLY A PERIOD OF LOSSES FOR THE AIRLINE INDUSTRY COMES JUST AS THE AIRLINE IS CONTENDING WITH A POSSIBLE MAJOR SETBACK IN ITS EFFORTS TO EMERGE FROM CHAPTER 11 LAST WEEK A GROUP WHOSE 2449 MILLION INVESTMENT PROPOSAL IS THE CENTERPIECE OF AMERICA WEST'S REORGANIZATION PLAN THREATENED TO PULL OUT AMWEST PARTNERS LP AN INVESTMENT GROUP THAT INCLUDES CONTINENTAL AIRLINES AND TWO OF ITS LARGEST SHAREHOLDERS HAS SAID IT MAY ABANDON EFFORTS TO INVEST IN AMERICA WEST AFTER A BANKRUPTCY JUDGE REFUSED TO APPROVE THE PLAN BECAUSE IT INCLUDES PROVISIONS FOR A BREAKUP FEE OF AS MUCH AS 8 MILLION IF THE TRANSACTION FALLS THROUGH THE BANKRUPTCY COURT JUDGE SAID IN HIS RULING THAT SUCH A FEE HAS A CHILLING EFFECT ON OTHER INVESTORS LAST WEEK AMERICA WEST WAS DECIDING WHETHER TO APPEAL THE DECISION 9404250033 940425 BUSINESS BRIEF MAYTAG CORP FIRSTQUARTER NET REVERSES LOSS IN YEAREARLIER PERIOD MAYTAG CORP CITING STRENGTH IN SALES AND DEMAND SAID IT HAD ITS BEST QUARTERLY RESULTS IN ALMOST FOUR YEARS AND REVERSED A YEAREARLIER LOSS WITH FIRSTQUARTER NET INCOME OF 278 MILLION THE NEWTON IOWA APPLIANCE MAKER'S PERSHARE INCOME WAS 26 CENTS COMPARED WITH A LOSS OF 105 MILLION OR 10 CENTS A SHARE IN THE PREVIOUS YEAR'S PERIOD WHEN THE COMPANY WAS HURT BY A FLAWED PROMOTION IN THE UK SALES GREW 103 TO 7906 MILLION FROM 7169 MILLION THE LATEST QUARTER'S RESULTS REFLECT A CHARGE OF 32 MILLION FROM AN ACCOUNTING CHANGE MAYTAG SAID INCOME WAS DRIVEN BY VOLUME GAINS IN ITS NORTH AMERICAN MAJORAPPLIANCE AND FLOORCARE BUSINESS IMPROVEMENT IN ITS VENDINGEQUIPMENT BUSINESS AND SALES OF ITS HOOVER UNIT'S NEW CARPET CLEANER IN THE FIRST QUARTER OF 1993 THE COMPANY RECORDED A PRETAX CHARGE OF 50 MILLION FOR COSTS ASSOCIATED WITH PROMOTIONAL PROGRAMS BY HOOVER EUROPE MAYTAG SAID IT EXPECTS THE UNIT TO BENEFIT THIS YEAR FROM A PLANT CONSOLIDATION AND OTHER PLANS TO TAKE COSTS OUT OF THE OPERATION 9404250032 940425 TECHNOLOGY BRIEF MARION MERRELL DOW INC RUGBY LABS UNIT INTENDS TO SELL PRODUCTS IN RUSSIA MARION MERRELL DOW INC KANSAS CITY MO SAID ITS RUGBY LABORATORIES GENERICDRUG UNIT INTENDS TO BEGIN MARKETING PHARMACEUTICAL PRODUCTS IN RUSSIA THE DRUG CONCERN NOTED THAT THE PLAN COMES IN THE WAKE OF A MIDFEBRUARY PACT THE US REACHED WITH RUSSIA THE ACCORD ELIMINATED MANY BARRIERS THAT HAD MADE IT DIFFICULT FOR US DRUG MAKERS TO SELL PRODUCTS IN RUSSIA RUSSIAN PHARMACEUTICAL COMPANIES LIKE MANY OTHER INDUSTRIES IN THAT COUNTRY HAVE BEEN STRUGGLING TO MEET DEMAND FOR IMPORTANT PRODUCTS MARION MERRELL SAID THE PLAN TO REGISTER ITS PRODUCTS WITH RUSSIAN AUTHORITIES AND BEGIN SALES REPRESENTS AN IMPORTANT OPPORTUNITY FOR US TO EXTEND RUGBY'S PRESENCE OUTSIDE OF THE US A COMPANY OFFICIAL SAID RUGBY WHICH MARION ACQUIRED LAST OCTOBER CURRENTLY SELLS ONLY A LIMITED NUMBER OF PRODUCTS ABROAD 9404250031 940425 ECONOMY US ENCOUNTERS RESISTANCE IN PUSHING JAPAN AND GERMANY TO SPUR GROWTH BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US AT LAST ENJOYING AN ECONOMIC RECOVERY THAT IS THE ENVY OF THE INDUSTRIALIZED WORLD USED AN UPBEAT WEEKEND MEETING OF ECONOMIC OFFICIALS FROM THE GROUP OF SEVEN INDUSTRIAL COUNTRIES TO URGE GERMANY AND JAPAN TO SPUR GROWTH IN THEIR ECONOMIES BUT THE GERMANS AND JAPANESE APPEARED TO RESIST THE MESSAGE TELLING REPORTERS THAT INTERNATIONAL MONETARY FUND PROJECTIONS FOR THEIR ECONOMIES ARE TOO PESSIMISTIC THE IMF FORESEES HARDLY ANY GROWTH IN EITHER COUNTRY THIS YEAR AND ONLY A MODEST PICKUP NEXT YEAR THE WORLD ECONOMY IS LOOKING AS GOOD AS TODAY'S WEATHER SAID GERMAN FINANCE MINISTER THEO WAIGEL REFERRING TO THE CLOUDLESS SUNNY SUNDAY AFTERNOON HERE BUT AFTER THE MEETING US TREASURY SECRETARY LLOYD BENTSEN CAUTIONED AGAINST OVEROPTIMISM ABOUT THE WORLD ECONOMY SOME OF THAT OPTIMISM CAN CERTAINLY FADE AND CAN FADE FAST UNLESS IT'S BASED ON CREDIBLE PLANS HE SAID ECONOMIES ARE NOT LIKE SEASONS WHERE SPRING BECOMES SUMMER AND SUMMER FALL AND IT ALL HAPPENS AUTOMATICALLY MR BENTSEN SAID THE OUTLOOK WOULD BE BRIGHTER IF EUROPE WOULD CUT INTEREST RATES AND JAPAN WOULD CUT TAXES INCREASE GOVERNMENT SPENDING OR BOTH AT A HALFHOUR MEETING WITH MR BENTSEN EARLIER YESTERDAY JAPANESE FINANCE MINISTER HIROHISA FUJII REPORTED THAT BRIGHT SIGNS RECENTLY HAVE APPEARED IN THE JAPANESE ECONOMY MR FUJII TOLD REPORTERS US OFFICIALS ACKNOWLEDGE THAT THE JAPANESE ECONOMY APPEARS TO HAVE BOTTOMED OUT BUT THEY SAY THE RECOVERY WILL BE PAINFULLY SLUGGISH UNLESS JAPAN ADOPTS A MORE EXPANSIVE FISCAL POLICY MR BENTSEN SAID THE JAPANESE WEREN'T IN A POSITION TO MAKE ANY COMMITMENTS BECAUSE THEIR GOVERNMENT IS IN TRANSITION JAPAN HAS BEEN WORRIED ABOUT THE STRENGTH OF THE YEN WHICH HURTS JAPANESE EXPORTERS MR FUJII SAID HE AND MR BENTSEN DISCUSSED EXCHANGE RATES BUT HE DIDN'T ELABORATE MR BENTSEN LATER POINTED OUT THAT EXCHANGE RATES REMAINED STEADY DESPITE RECENT TURMOIL IN WORLD FINANCIAL MARKETS THE TREASURY SECRETARY HAS BEEN INCREASINGLY EMPHATIC IN RECENT DAYS THAT THE US ISN'T TRYING TO MANAGE THE VALUE OF THE DOLLAR WE'RE NOT GOING TO TRY TO DEVALUE OURSELVES INTO THEIR MARKETS HE SAID LAST WEEK ONE CLOUD OVER THE WORLD ECONOMY IS THE RECENT GLOBAL INCREASE IN LONGTERM INTEREST RATES GERMAN BUNDESBANK PRESIDENT HANS TIETMEYER DESCRIBED THE RISE AS AN OVERREACTION TO THE FEDERAL RESERVE'S MOVE TO INCREASE US SHORTTERM INTEREST RATES BUT MR BENTSEN SAID HE AND HIS COLLEAGUES CONCLUDED THAT THE RISE IN LONGTERM INTEREST RATES REFLECTS GROWING EXPECTATIONS OF STRONGER GROWTH ALTHOUGH ITS PACE AND MAGNITUDE MAY REFLECT SOME MARKET DYNAMICS AN APPARENT REFERENCE TO THE IMPACT OF HUGE HEDGE FUNDS AND THE SPREAD OF EXOTIC FINANCIAL INSTRUMENTS A SEPARATE GROUP OF ECONOMIC OFFICIALS FROM 11 INDUSTRIALIZED NATIONS KNOWN IMPROBABLY AS THE GROUP OF 10 PLANS A STATEMENT TODAY ON RECENT FINANCIALMARKET DEVELOPMENTS ACCORDING TO GERD HALLER THE TOP CIVIL SERVANT IN THE GERMAN FINANCE MINISTRY G10 OFFICIALS WILL RECEIVE A REPORT FROM LAMBERTO DINI DIRECTOR GENERAL OF THE BANK OF ITALY ON WHETHER THE GROWING USE OF SOPHISTICATED FINANCIAL INSTRUMENTS HAS CONTRIBUTED TO RECENT VOLATILITY IN THE MARKETS OFFICIALS SAY THE BROAD CONCLUSION IS THAT THESE INSTRUMENTS DON'T POSE A MAJOR RISK TO THE INTERNATIONAL FINANCIAL SYSTEM AND THAT IT WOULD BE DIFFICULT TO REGULATE THEM THE G7 COMPRISES THE US GERMANY JAPAN BRITAIN CANADA FRANCE AND ITALY THE G10 INCLUDES THOSE SEVEN PLUS BELGIUM THE NETHERLANDS SWEDEN AND SWITZERLAND ESTABLISHED ORIGINALLY TO COORDINATE ECONOMIC POLICIES AMONG ITS MEMBERS THE G7 HAS EVOLVED INTO A FORUM FOR THE WORLD'S RICHEST CAPITALIST COUNTRIES TO AGREE ON A COMMON MESSAGE FOR RUSSIA A SENIOR TREASURY OFFICIAL SAID THE GROUP WAS HEARTENED BY WORDS THEY HEARD FROM RUSSIAN ECONOMIC OFFICIALS THAT THEIR COUNTRY REMAINED COMMITTED TO ECONOMIC REFORM BUT THEY SAID MOSCOW STILL NEEDS TO DEMONSTRATE THAT IT WILL FOLLOW THROUGH WITH DEEDS ON ANOTHER MATTER RUSSIA'S DEPUTY PRIME MINISTER ALEKSANDER SHOKHIN SAID HE HOPES WITHIN A MONTH OR TWO TO REACH AN AGREEMENT TO RESCHEDULE THE 4 BILLION IN PAYMENTS THAT RUSSIA AGREED TO MAKE THIS YEAR MR BENTSEN SAID THE G7 UNDERLINED OUR READINESS TO WORK ON SUCH AN AGREEMENT 9404250030 940425 BUSINESS BRIEF STEWART & STEVENSON SERVICES INC COURT REVERSES JUDGMENT IN ACTION AGAINST COMPANY STEWART & STEVENSON SERVICES INC SAID A 175 MILLION JUDGMENT AGAINST THE COMPANY WAS REVERSED BY THE 14TH COURT OF APPEALS OF THE STATE OF TEXAS THE DIESEL AND GAS TURBINEPOWERED EQUIPMENT MANUFACTURER IN HOUSTON SAID SERVTECH INC OF HOUSTON HAD FILED THE SUIT AGAINST STEWART & STEVENSON AND TWO CLOSELY HELD COMPANIES STEWART & STEVENSON SAID ITS MANAGEMENT DIDN'T BELIEVE THAT FUTURE ACTION IN CONNECTION WITH THE LAWSUIT WOULD HAVE A MATERIAL IMPACT ON THE COMPANY'S FINANCIAL POSITION OR RESULTS OF OPERATIONS A SPOKESWOMAN FOR SERVTECH SAID THE COMPANY WHICH WAS VERY DISAPPOINTED IN THE VERDICT WILL REVIEW INFORMATION FROM ITS LAWYERS BEFORE DECIDING WHETHER TO PURSUE THE MATTER FURTHER SHE ADDED THAT THE LAWSUIT FILED BY THE SPECIALTYCONSTRUCTION COMPANY ALLEGED A BREACH OF CONTRACT INVOLVING CONFIDENTIAL INFORMATION AND TRADE SECRETS 9404250029 940425 DIGITAL EQUIPMENT'S BOARD ENDORSES PLAN TO SPEED TURNAROUND MAYNARD MASS DIGITAL EQUIPMENT CORP'S BOARD IN A MEETING LATE LAST WEEK SUPPORTED MANAGEMENT'S PLANS FOR ACCELERATED COST REDUCTIONS AND RESTRUCTURING IN THE WAKE OF A HUGE LOSS REPORTED APRIL 15 ROBERT B PALMER PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID SEPARATELY MOODY'S INVESTORS SERVICE INC ON FRIDAY LOWERED ITS RATINGS ON THE COMPUTER MAKER'S LONGTERM AND SHORTTERM DEBT AND PREFERRED STOCK CITING THE RECENT LOSS AND EXPECTED RESTRUCTURING IN A LETTER TO SHAREHOLDERS MR PALMER SAID MANAGEMENT HAS A NEW SENSE OF URGENCY BUT ALSO WARNED THAT ANY ACTIONS TO ACCOMPLISH OUR OBJECTIVES TOO QUICKLY OR ABRUPTLY COULD TRULY JEOPARDIZE OUR VIABILITY MR PALMER PROMISED A SECOND PHASE OF TURNAROUND EFFORTS WHICH WE EXPECT TO TAKE ABOUT 24 MONTHS BUT DIDN'T OFFER SPECIFICS THE COMPANY ALREADY HAS INDICATED THAT IT WILL TAKE A NEW RESTRUCTURING CHARGE AND FURTHER WORKFORCE REDUCTIONS BEYOND THE 7000 EXPECTED BY JUNE 30 WHICH WILL BRING THE PAYROLL TO 85000 ANALYSTS HAVE SAID THAT FURTHER CUTS COULD CLAIM ANOTHER 20000 JOBS THE LETTER ALSO APPEARS INTENDED TO ANSWER SPECULATION THAT MR PALMER HAD LOST THE BOARD'S SUPPORT IN THE WAKE OF THE UNEXPECTED 183 MILLION LOSS FOR THE QUARTER ENDED MARCH 30 MOODY'S WHICH HAD PLACED DIGITAL'S RATINGS UNDER REVIEW WHEN THE LOSS WAS REPORTED SAID IT REDUCED DIGITAL'S SENIOR UNSECURED LONGTERM DEBT TO BAA3 FROM BAA2 SHORTTERM DEBT TO PRIME3 FROM PRIME2 AND PREFERRED STOCK TO BA2 FROM BA1 A TOTAL OF 14 BILLION IN DEBT AND PREFERRED STOCK IS AFFECTED MOODY'S SAID DIGITAL'S REVENUE AND EARNINGS ARE LIKELY TO REMAIN UNDER PRESSURE BECAUSE OF COMPETITION THE SHIFT TO LOWER MARGIN PRODUCTS AND UNPREDICTABLE MARKET DEMAND FOR COMPUTERS THAT USE DIGITAL'S NEWGENERATION ALPHA MICROPROCESSOR IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE DIGITAL COMMON CLOSED AT 19375 UP 125 CENTS 9404250028 940425 GOODYEAR AND UNION REACH TENTATIVE PACT THE UNITED RUBBER WORKERS UNION REACHED A TENTATIVE THREEYEAR LABOR PACT WITH GOODYEAR TIRE & RUBBER CO YESTERDAY JUST HOURS AFTER THE PREVIOUS CONTRACT EXPIRED NEITHER SIDE WOULD DISCLOSE DETAILS OF THE CONTRACT PENDING RATIFICATION BY UNION MEMBERS BUT THE UNION WAS AIMING FOR IMPROVED JOB SECURITY AND BETTER BENEFITS THE CONTRACT WOULD COVER 12200 WORKERS THE URW NOW WILL USE THE GOODYEAR PACT AS A MODEL FOR AGREEMENTS WITH BRIDGESTONE/FIRESTONE A UNIT OF TOKYOBASED BRIDGESTONE CORP AND UNIROYAL GOODRICH OWNED BY THE US SUBSIDIARY OF GROUPE MICHELIN OF FRANCE PACTS WITH BOTH COMPANIES EXPIRED SATURDAY BUT URW MEMBERS WILL CONTINUE TO WORK WHILE BRIDGESTONE/FIRESTONE AND UNIROYAL GOODRICH OFFICIALS STUDY THE GOODYEAR AGREEMENT THE URW REPRESENTS 4200 WORKERS AT BRIDGESTONE/FIRESTONE AND 5400 AT UNIROYAL GOODRICH 9404250027 940425 INTERNATIONAL HATA'S PROSPECTS REST ON ALLIANCE THAT IS SHAKY COALITION CHOICE FOR PREMIER OF JAPAN FACES HURDLES IN PUSHING BIG REFORMS BY MICHAEL WILLIAMS AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO TSUTOMU HATA MAY BE THE RIGHT MAN FOR JAPAN BUT AT THE WRONG TIME MR HATA AN AFFABLE REFORMIST AND THE INCUMBENT FOREIGN MINISTER WAS NOMINATED FRIDAY BY JAPAN'S RULING COALITION TO SUCCEED MORIHIRO HOSOKAWA AS PRIME MINISTER HE IS EXPECTED TO GET THE FORMAL NOD TODAY IN A VOTE IN PARLIAMENT MR HATA IS HAILED BY BUSINESSMEN BUREAUCRATS AND VOTERS AS THE BEST MAN TO TACKLE THE ECONOMIC AND DIPLOMATIC PROBLEMS FACING THE NATION HE IS CONSIDERED PROCONSUMER PROSTIMULUS AND UNTOUCHED BY THE SCANDALS THAT HAVE CLAIMED SEVERAL OF HIS PREDECESSORS INCLUDING MR HOSOKAWA IN A NEWSPAPER POLL PUBLISHED LAST WEDNESDAY 61 OF RESPONDENTS BACKED MR HATA AS PREMIER AND JUST 21 OPPOSED HIM THE PROBLEM IS A NUMBER OF JAPANESE THINK MR HATA'S WOBBLY CABINET WON'T SURVIVE THE YEAR WHAT'S MORE EVEN IF HE DOES HANG ON SOME QUESTION WHETHER HE WILL TRY TO FOIST IMPORTANT ECONOMIC REFORMS ON JAPAN'S POWERFUL BUREAUCRACY AND PAMPERED INDUSTRIES IT WILL BE A WASTE OF HIS TALENT WORRIES KAZUO ITOH PRESIDENT OF OHYAMA LIGHTING CO A MAJOR LIGHTINGEQUIPMENT MAKER MR HATA IS A PROFESSIONAL AND KNOWS VERY WELL WHAT SHOULD BE DONE BUT AS LONG AS THE VERY BASE OF HIS GOVERNMENT IS SHAKY IT WILL BE DIFFICULT FOR HIM TO ACCOMPLISH MUCH MR HATA IS MORE OF A POLITICAL INSIDER THAN MR HOSOKAWA HE KNOWS JAPAN'S BUREAUCRACIES HAVING BEEN MINISTER OF THREE AND HIS FATHER WAS A FOUNDER OF THE FORMERLY RULING LIBERAL DEMOCRATIC PARTY BUT HIS BACKGROUND RAISES THE TWO QUESTIONS THAT WILL DETERMINE HIS LEGACY WILL HE INDEED BE MORE EFFECTIVE AT GETTING THINGS DONE THAN HIS PREDECESSOR OR WILL HIS CONSENSUSORIENTED STYLE AND INSIDER EXPERIENCE MAKE HIM LESS LIKELY TO PUSH FOR REAL CHANGE SUCH AS FORCING ADDITIONAL AND STRONGER STIMULATIVE SPENDING POLICIES ON JAPAN'S FAMOUSLY TIGHTFISTED FINANCE MINISTRY MANY IN JAPAN SAY THE US SHOULDN'T EXPECT BOLD INITIATIVES FROM MR HATA FINANCE MINISTRY OFFICIALS REMEMBER MR HATA AS A MAN WHO LET THEM SHAPE POLICY LIKE MR HOSOKAWA BEFORE HIM THE NEW PREMIER MAY FOLLOW AN ANTIBUREAUCRAT LINE SAYS ONE FINANCE MINISTRY OFFICIAL BUT HE KNOWS POLITICIANS SOMEHOW HAVE TO GET ALONG WITH BUREAUCRATS IN ORDER TO GET THINGS DONE MR HATA IS ALSO A TRUE BELIEVER IN HAVING JAPAN TAKE A MORE FORCEFUL ROLE IN THE WORLD A STANCE THAT MAY SOMETIMES ENTAIL SAYING NO TO THE US I DON'T THINK WE CAN CALL OUR RELATIONS BIG BROTHER/LITTLE BROTHER' ANYMORE HE SAID IN AN INTERVIEW WITH THIS NEWSPAPER LAST SEPTEMBER PERHAPS MORE IMPORTANTLY SOME OBSERVERS THINK THE HATA CABINET MAY SURVIVE FOR AS LITTLE AS TWO MONTHS THE UNCERTAINTY BODES ILL FOR PROGRESS ON ISSUES CRITICAL TO WASHINGTON THE US WANTS JAPAN TO CUT TAXES TAKE MARKETOPENING MEASURES AND SPEND MORE TO STIMULATE ITS ECONOMY ECONOMISTS SAY A FAILURE TO PLACATE THE US WOULD BE BAD NEWS FOR JAPAN'S SLUGGISH ECONOMY TOO TRADE TENSIONS ARE HELPING TO PUSH UP THE VALUE OF THE YEN WHICH HURTS JAPAN'S EXPORTDEPENDENT MULTINATIONALS BY MAKING THEIR GOODS MORE EXPENSIVE OVERSEAS IF THE YEN STAYS AT THIS LEVEL IT'S DIFFICULT TO SEE CORPORATE EARNINGS RECOVER THIS YEAR AND WE'D BE LIKELY TO SEE A CAPITALINVESTMENT CONTRACTION SAYS NOBORU KAWAI AN ECONOMIST AT MORGAN STANLEY & CO IN TOKYO THE YEN IS NOW TRADING AT ABOUT 103 TO THE DOLLAR ANOTHER WILD CARD IS MR HATA'S LONG TENURE IN THE CORRUPTIONRIDDEN LDP NO FINANCIAL SCANDALS HAVE TAINTED MR HATA A FACT THAT DISTINGUISHES HIM FROM MANY OF HIS PEERS BUT MR HOSOKAWA ANOTHER FORMER LDP MEMBER WAS ALSO CONSIDERED CLEAN UNTIL HE HAD TO RESIGN OVER ALLEGATIONS OF OLD FINANCIAL IMPROPRIETIES MR HATA SPENT 24 YEARS IN AN LDP FACTION FAMOUS FOR BEING A POWERBROKING FUNDRAISING MACHINE INDEED TABLOIDS ARE ALREADY POKING INTO HIS MONEY CONNECTIONS ANOTHER POSSIBLE PROBLEM IS MR HATA'S PERCEIVED LACK OF INDEPENDENCE HE IS WIDELY PORTRAYED HERE AS A MERE FRONT MAN FOR UNPOPULAR LEGISLATOR ICHIRO OZAWA THE CHIEF STRATEGIST OF THE RULING COALITION THE ASAHI SHIMBUN A LEADING NEWSPAPER SUMMED UP THOSE SUSPICIONS IN A WEEKEND EDITORIAL ENTITLED ISN'T IT PRIME MINISTER OZAWA MR HATA IS EXPECTED TO NAME A NEW FOREIGN MINISTER AND CHIEF GOVERNMENT SPOKESMAN LATER TODAY AMONG OTHER CABINET CHANGES HE ALSO MAY APPOINT AN ECONOMIC CZAR TO HANDLE ECONOMIC ISSUES INCLUDING USJAPAN PROBLEMS HIS NOMINATION CAME AFTER THE COALITION PARTIES REACHED A GENERAL AGREEMENT ON LEGISLATING AN INCOMETAX REDUCTION AND COPING WITH A VOLATILE NORTH KOREA TWO ISSUES THAT DIVIDE THE CONSERVATIVE AND SOCIALIST WINGS OF THE ALLIANCE THE GOVERNMENT IS NOW EXPECTED TO TURN ITS ATTENTION TO PASSING A BUDGET THE IMMEDIATE CHALLENGE FACING MR HATA IS TO KEEP HIS FEEBLE ALLIANCE FROM GROWING EVEN WEAKER BEYOND A SHARED DESIRE TO HOLD POWER THE ONLY GLUE BINDING THE SEVERAL FACTIONS IS THE NEED TO PASS THE BUDGET A PROCESS THAT SHOULD BE FINISHED IN TWO MONTHS OR LESS JATHON SAPSFORD CONTRIBUTED TO THIS ARTICLE 9404250026 940425 ABREAST OF THE MARKET CHILLY RECEPTION TO HANDSOME EARNINGS PROVOKES DEBATE HAVE PROFITS PEAKED BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT JUST DOESN'T ADD UP CORPORATE AMERICA IS REPORTING PHENOMENAL PROFITS YET INVESTORS ARE ACTING LIKE JILTED LOVERS PUNISHING STOCKS WITH A DEEPSEATED VENGEANCE LAST WEEK CATERPILLAR POSTED ITS BEST FIRST QUARTER EVER WITH EARNINGS OF 189 A SHARE WELL ABOVE CONSENSUS ANALYSTS' EXPECTATIONS OF 121 BUT THAT DIDN'T MATTER TO INVESTORS WHO DUMPED THE STOCK SENDING CATERPILLAR SHARES DOWN 4 7/8 TO 103 1/2 THOUGH CATERPILLAR RALLIED FRIDAY RISING 1 1/4 TO 107 7/8 ITS STOCK WAS STILL LOWER FOR THE WEEK IT WAS MUCH THE SAME STORY WITH MORTON INTERNATIONAL THE CHICAGOBASED MAKER OF SALT AND SPECIALTY CHEMICAL PRODUCTS SAID LAST WEDNESDAY THAT IT EARNED 142 A SHARE IN THE THIRD QUARTER SURPASSING ANALYSTS' EXPECTATIONS OF 140 A SHARE WHAT DID INVESTORS DO THEY TRASHED THE STOCK MORTON PLUNGED 10 1/8 TO 82 3/4 ON THE DAY OF THE PROFIT REPORT AND FINSHED THE WEEK LOWER AFTER RISING 3/8 TO 87 FRIDAY CLEARLY SOME COMPANIES ARE STILL MANAGING TO PLEASE INVESTORS INTERNATIONAL BUSINESS MACHINES STOCK SOARED 12 THURSDAY AFTER IT REVERSED A YEAREARLIER LOSS BY REPORTING A FIRSTQUARTER PROFIT OF 392 MILLION BUT THERE ARE A SLEW OF OTHER COMPANIES THAT ARE REPORTING MUCH BETTER EARNINGS THAN ESTIMATES AND FINDING THEIR STOCKS ARE TRADING LOWER SAYS BEN ZACKS WHO HEADS A FIRM THAT TRACKS CORPORATE EARNINGS ESTIMATES MR ZACKS SAYS THAT OF THE 426 COMPANIES THAT HAVE REPORTED BETTERTHANEXPECTED EARNINGS FROM APRIL 11 THROUGH LAST WEDNESDAY 48 OF THE STOCKS WERE DOWN IN PRICE AS OF THURSDAY'S CLOSE MANY OF THE COMPANIES THAT HAVE BEEN BEATEN UP ARE CYCLICAL SHARES OR STOCKS OF COMPANIES SENSITIVE TO THE ECONOMIC CYCLE IN MR ZACKS'S MIND THE ROUT IN CYCLICALS BOILS DOWN TO PSYCHOLOGY THE PSYCHOLOGY IS THAT EARNINGS HAVE PEAKED FOR THIS CYCLE BUT IT'S JUST NOT TRUE HE CONTENDS MR ZACKS BELIEVES THAT THIS ECONOMIC CYCLE UNLIKE PREVIOUS ONES WILL BE MORE DRAWNOUT PAVING THE WAY FOR EARNINGS TO PEAK FURTHER DOWN THE ROAD RATHER THAN TODAY BUT MANY WALL STREET STOCK STRATEGISTS INCLUDING SOME OF THE MOST BULLISH ONES THINK THAT CORPORATE EARNINGS HAVE ALREADY PEAKED AND WHAT'S IRKING INVESTORS THESE DAYS IS THE FEAR THAT SLOWER ECONOMIC GROWTH WILL MEAN LOWER CORPORATE PROFITS IN THE COMING MONTHS WHAT THE STOCK MARKET IS COMING TO GRIPS WITH IS NOT THE FIRST QUARTER BUT THE THIRD AND FOURTH QUARTER SAYS CHARLES CLOUGH CHIEF INVESTMENT STRATEGIST AT MERRILL LYNCH CLEARLY THE ECONOMY HAS RECOVERED AND TO GROW FROM HERE YOU NEED TO GROW AT A MUCH HIGHER LEVEL BUT WITH INTEREST RATES RISING MR CLOUGH DOUBTS THAT RAPIDLY GROWING PROFITS ARE IN THE CARDS OUR VIEW IS THE ECONOMY IS GOING TO SLOW AND THE SLOWDOWN LATER THIS YEAR COULD DEPRESS EARNINGS HE SAYS HIS SENTIMENTS ARE ECHOED BY MANY ECONOMISTS WHO SAY THEY ALREADY SEE SIGNS OF A TIRING ECONOMY IN A DAILY FAX TO CLIENTS LAST WEEK ED HYMAN WHO HEADS ISI GROUP INC A CONSULTING FIRM SAID THAT MORTGAGE REFINANCING APPLICATIONS HAVE COLLAPSED CONSUMER CONFIDENCE IS UP SLIGHTLY MONEY GROWTH HAS SLOWED UNEMPLOYMENT CLAIMS HAVE TRENDED SLIGHTLY HIGHER AND STOCKS THAT ARE SENSITIVE TO THE ECONOMY HAVE SLUMPED IT'S NO WONDER THAT EVEN FERVENT BULLS LIKE ELAINE GARZARELLI LEHMAN BROTHERS' STAR STOCK STRATEGIST ARE FINDING IT HARD TO BE UPBEAT THESE DAYS WHEN THE FED IS TIGHTENING YOU ARE NOT GOING TO GET A SUPER RALLY UNTIL THE FED STOPS TIGHTENING OR STARTS EASING SAYS MS GARZARELLI WHO THINKS STOCK PRICES WILL MOVE SIDEWAYS FOR MUCH OF THIS YEAR IN A SIGNIFICANT SHIFT THIS MONTH MS GARZARELLI REDUCED HER ESTIMATE FOR 1994 STANDARD & POOR'S 500 INDEX EARNINGS BY 62 TO 3050 LOOKING AHEAD TO 1995 MS GARZARELLI SAID THAT THE RECENT RISE IN LONG AND SHORTTERM INTEREST RATES WILL SLOW ECONOMIC GROWTH BY FORCING BELTTIGHTENING AMONG CONSUMERS AND DRIVING UP INTEREST COSTS FOR CORPORATIONS AS A RESULT SHE IS PROJECTING THAT 1995 S&P EARNINGS WILL BE FLAT OR FALL ABOUT 1 TO 2 FROM THIS YEAR'S LEVEL AND SHE IS ADVISING CLIENTS TO LIGHTEN UP ON CYCLICAL STOCKS DURING THE NEXT RALLY AND SHIFT INTO FOOD ELECTRIC UTILITIES NEWSPAPER DRUG DIVERSIFIED HEALTH CARE AND REGIONAL BANK SHARES SIMILARLY BECAUSE MR CLOUGH THINKS A PICKUP IN GROWTH THIS YEAR IS UNLIKELY HE IS TELLING INVESTORS TO MOVE INTO MORE GROWTHORIENTED STOCKS AND BAIL OUT OF COMPANIES THAT ARE PARTICULARLY SENSITIVE TO THE SWINGS IN THE ECONOMY AMONG THE GROWTH STOCKS THAT HE LIKES ARE TECHNOLOGY SHARES AND HEALTHCARE STOCKS SUCH AS GENESIS HEALTH VENTURES AND LIVING CENTERS OF AMERICA HE ALSO THINKS SOME CYCLICAL STOCKS ARE WORTH EYEING AMONG HIS TOP PICKS ARE AUTO MACHINERY ENGINEERING AND CONSTRUCTION STOCKS AND FINANCIAL SHARES MEANWHILE SOME ANALYSTS LIKE GREG SMITH CHIEF INVESTMENT STRATEGIST AT PRUDENTIAL SECURITIES SAY THE ANXIETIES ABOUT CORPORATE PROFITS MAY BE OVERDONE THERE IS NO QUESTION THE ECONOMY WILL SLOW SAYS MR SMITH BUT THE QUESTION IS WILL IT DECELERATE TO THE EXTENT THAT GROWTH IS SLOW ENOUGH FOR THE FED AND FAST ENOUGH FOR PROFITS MR SMITH WHO STUNNED WALL STREET LAST YEAR WITH HIS FORECAST THAT S&P OPERATING EARNINGS EXCLUDING WRITEOFFS WILL HIT 36 THIS YEAR THINKS IT WILL HE IS STICKING BY HIS 1994 EARNINGS FORECAST AND THINKS THAT PROFITS WILL BE UP IN 1995 TOO THANKS TO IMPROVED PRODUCTIVITY THOMAS MCMANUS A STOCK STRATEGIST AT MORGAN STANLEY IS TAKING THE BULLISH TACK HE IS ADVISING CLIENTS TO HOLD ONTO THEIR US STOCKS AND STAY WITH THEIR CYCLICAL BETS MR MCMANUS SAYS THAT SO MANY CYCLICAL COMPANIES HAVE BEEN SURPASSING EARNINGS ESTIMATES FOR SEVERAL QUARTERS NOW THAT PUBLISHED PROFIT EXPECTATIONS AREN'T REALLY AN ACCURATE GAUGE OF WHAT INVESTORS THINK A COMPANY CAN EARN THERE'S A WHOLE TOUCHYFEELY EXPECTATIONS GAME GOING ON SAYS MR MCMANUS THE CONSUMER STOCKS ARE REBOUNDING BECAUSE THEY ARE REPORTING HIGH EARNINGS ON LOW EXPECTATIONS AND THE CYCLICAL STOCKS ARE CORRECTING BECAUSE THEIR REPORTED EARNINGS MAY BE SLIGHTLY DISAPPOINTING TO THE MOST WILDLY BULLISH EXPECTATIONS BUT BY THE END OF THE YEAR I THINK INVESTORS WILL BE HAPPY IF THEY STAY WITH THE STOCK MARKET AND WITH CYCLICAL STOCKS HE SAYS STOCKS WERE MIXED IN LACKLUSTER TRADING THE DOW JONES INDUSTRIALS SLIPPED 386 POINTS TO 364868 STANDARD & POOR'S 500STOCK INDEX EASED 110 TO 44763 AND THE NASDAQ COMPOSITE INDEX CLIMBED 382 TO 72256 ADVANCING ISSUES OUTNUMBERED DECLINERS 1282 TO 930 VOLUME DROPPED TO 2957 MILLION SHARES FROM 3786 MILLION THURSDAY FOR THE WEEK THE INDUSTRIAL AVERAGE EASED 03 AND THE NASDAQ COMPOSITE INDEX LOST 07 BUT THE S&P 500 CLIMBED 03 AMGEN ROCKETED 4 3/4 TO 42 ON NASDAQ SPARKING A RALLY IN OTHER BIOTECHNOLOGY STOCKS AMGEN REPORTED FIRSTQUARTER EARNINGS OF 66 CENTS A SHARE UP FROM 55 CENTS BEFORE AN ACCOUNTING ADJUSTMENT LAST YEAR AND SLIGHTLY HIGHER THAN EXPECTED IN A CONFERENCE CALL AMGEN TOLD ANALYSTS THAT THEIR FORECASTS FOR 1994 WERE AT LEAST A NICKEL A SHARE TOO LOW ESTIMATES RANGE FROM 285 TO 295 INFORMIX DROPPED 2 9/16 TO 16 9/16 ON NASDAQ THE SOFTWARE COMPANY POSTED EARNINGS THAT WERE SLIGHTLY LOWER THAN EXPECTED PROMUS FELL 1 5/8 TO 32 A LOUISIANA OFFICIAL WILL REQUIRE THE MEMPHIS TENN COMPANY TO RESUBMIT ITS BID TO OPEN A HARRAH'S CASINO IN NEW ORLEANS CAESARS WORLD JUMPED 1 7/8 TO 45 SMITH BARNEY SHEARSON INITIATED COVERAGE OF THE CASINO CONCERN WITH A BUY RATING MOBIL RALLIED 2 1/4 TO 78 3/8 AFTER THE OIL AND GAS CONCERN REPORTED FIRSTQUARTER EARNINGS OF 131 A SHARE UP FROM 119 EXXON ADDED 5/8 TO 63 1/8 IT HAD FIRSTQUARTER NET INCOME OF 92 CENTS A SHARE DOWN FROM 94 CENTS LAST YEAR BUT ABOVE ANALYSTS' EXPECTATIONS TELEDYNE JUMPED 2 1/2 TO 16 7/8 THE AEROSPACE COMPANY HAS AGREED TO PAY 1125 MILLION TO SETTLE TWO WHISTLEBLOWER LAWSUITS THAT ALLEGED IT FAKED TESTS ON COMPONENTS IT SOLD TO THE GOVERNMENT GOLDMAN SACHS UPGRADED ITS RATING ON THE STOCK TO MARKET PERFORMER FROM MARKET UNDERPERFORMER TELEFONOS DE MEXICO'S AMERICAN DEPOSITARY RECEIPTS INCREASED 2 5/8 TO 57 1/2 THE MEXICAN STOCK MARKET CONTINUED TO BOUNCE BACK FROM A BRUISING SELLOFF THAT SHOVED IT DOWN 11 EARLIER IN THE WEEK PACIFIC GAS & ELECTRIC SKIDDED 1 3/4 TO 27 1/2 AFTER PAINEWEBBER LOWERED ITS INVESTMENT RATING ON THE UTILITY COMPANY TO UNATTRACTIVE FROM NEUTRAL 9404250025 940425 BUSINESS BRIEF JENNY CRAIG INC LOSS OF 87 MILLION POSTED FOR FISCAL THIRD QUARTER JENNY CRAIG INC AN OPERATOR OF WEIGHTREDUCTION CENTERS REPORTED A FISCAL THIRDQUARTER NET LOSS OF 87 MILLION REFLECTING IN PART ONETIME CHARGES FOR NEW PLANS TO CLOSE MORE THAN 30 FACILITIES THE DEL MAR CALIF COMPANY SAID ITS NET LOSS IN THE LATEST PERIOD ENDED MARCH 31 EQUALED 33 CENTS A SHARE A YEAR EARLIER JENNY CRAIG HAD NET INCOME OF 105 MILLION OR 38 CENTS A SHARE REVENUE DROPPED 27 TO 96 MILLION FROM 1308 MILLION THE LATESTPERIOD LOSS REFLECTED IN PART ONETIME CHARGES TOTALING 129 MILLION PRETAX FOR ESTIMATED COSTS OF CLOSING MORE THAN 30 COMPANYOWNED CENTERS AS WELL AS WRITEDOWNS OF ACCOUNTS RECEIVABLE FROM FRANCHISEES AND LITIGATION RESERVES THE COMPANY ANNOUNCED ITS RESULTS AFTER THE CLOSE OF TRADING FRIDAY THE STOCK CLOSED AT 725 UP 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING NET INCOME FOR THE FISCAL NINE MONTHS INCLUDING THE ONETIME CHARGES TOTALED 216000 OR ONE CENT A SHARE A 99 PLUNGE FROM YEAREARLIER NET INCOME OF 270 MILLION OR 98 CENTS A SHARE REVENUE WAS OFF 16 AT 3052 MILLION FROM 3652 MILLION 9404250024 940425 FOSTER WHEELER'S SWIFT TO BE SUCCESSOR TO CHAIRMAN CHIEF EXECUTIVE AZZATO BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RICHARD J SWIFT IS EXPECTED TO BE NAMED CHAIRMAN AND CHIEF EXECUTIVE OF FOSTER WHEELER CORP TODAY AND APPEARS INTENT ON STAYING THE COURSE HE HELPED SET AS PRESIDENT AND CHIEF OPERATING OFFICER FOR THE PAST 16 MONTHS MR SWIFT 49 YEARS OLD IS TO SUCCEED LOUIS E AZZATO 63 WHO IS RETIRING MR AZZATO HAS BEEN CHIEF EXECUTIVE OF THE CLINTON NJ COMPANY SINCE 1981 AND CHAIRMAN SINCE 1988 IN AN INTERVIEW MR SWIFT SAID HE'LL CONTINUE TO PRESS THE COMPANY'S GEOGRAPHIC EXPANSION PARTICULARLY IN ASIA HE ALSO SEES GROWTH BY EXPANDING THE SERVICES PROVIDED BY ITS POWERSYSTEMS BUSINESS WHICH FINANCES AND OPERATES POWER PLANTS FOSTER WHEELER'S TWO OTHER MAJOR BUSINESSES ARE AN ENGINEERINGANDCONSTRUCTION UNIT WHICH DESIGNS AND BUILDS MAJOR PLANTS SUCH AS OIL REFINERIES AND CHEMICAL PLANTS AND AN ENERGYEQUIPMENT GROUP WHICH DESIGNS AND BUILDS LARGE CENTRALSTATION POWERPLANT BOILERS THE FUTURE OF THE COMPANY IS INTERNATIONAL SAID MR SWIFT WHO IN HIS MORE THAN 20 YEARS AT FOSTER WHEELER HELD A POSITIONS INCLUDING VICE PRESIDENT OF FOSTER WHEELER INTERNATIONAL CORP TWOTHIRDS OF FOSTER WHEELER'S 1993 REVENUE OF 265 BILLION CAME FROM PROJECTS OUTSIDE THE US UNTIL A FEW YEARS AGO OVERSEAS REVENUE HOVERED AROUND 40 TO 50 AMONG THE MOST LUCRATIVE MARKETS POTENTIALLY IS CHINA WHERE IN THE PAST FIVE YEARS FOSTER WHEELER HAS WON 800 MILLION TO 1 BILLION OF WORK AND RECENTLY ANNOUNCED A JOINT VENTURE WITH THE GOVERNMENT TO MAKE SOME KEY BOILER COMPONENTS MR SWIFT EXPECTS FOSTER WHEELER TO BID ON SEVERAL BILLION DOLLARS OF BUSINESS IN CHINA IN THE NEXT 18 MONTHS ALONE HE SAYS THE CHINA HAS A TREMENDOUS BUT LARGELY UNFILLED NEED FOR POWER PLANTS MAINLY COALFIRED CENTRALSTATION POWER PLANTS THAT CAN USE FOSTER WHEELER BOILERS BECAUSE ITS TWO LARGEST BUSINESSES ARE SUBJECT TO SO MANY VARIABLES MR SWIFT IS LOOKING FOR THE POWERSYSTEMS GROUP TO HELP CUSHION AGAINST THE OTHER GROUPS' CYCLICAL NATURE THE LONGTERM OPERATING CONTRACTS IN POWER SYSTEMS PROVIDE A BASE OF CASH FLOW AND EARNINGS HE SAYS THE COMPANY EXPECTS ITS BACKLOG WHICH TOTALED 38 BILLION AT THE END OF 1993 TO REMAIN STABLE OR RISE SLIGHTLY IN THE CURRENT YEAR AS FOR EARNINGS THE ANALYSTS' CONSENSUS ESTIMATE FOR THE FIRST QUARTER IS 41 CENTS A SHARE OR ABOUT 146 MILLION AN ESTIMATE THAT DAVID J ROBERTS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER DOESN'T HAVE A PROBLEM WITH THAT WOULD BE ABOUT A 15 INCREASE FROM THE YEAREARLIER NET OF 127 MILLION OR 36 CENTS A SHARE FOR THE YEAR MR ROBERTS IS COMFORTABLE WITH THE CONSENSUS PERSHARE EARNINGS FORECAST OF 180 OR A TOTAL OF ABOUT 64 MILLION AN INCREASE OF ABOUT 11 FROM THE 577 MILLION OR 162 A SHARE IMPROVEMENT IN THE ENERGYEQUIPMENT GROUP IS EXPECTED TO OUTPACE HIGHER RESULTS COMPANYWIDE REVENUE MAY BE DOWN A LITTLE FOR THE QUARTER AND THE YEAR THE EXECUTIVE SAID BECAUSE OF LOWER FLOWTHROUGH REVENUE FROM CUSTOMERS FOSTER WHEELER HAD 1993 FIRSTQUARTER REVENUE OF 5964 MILLION ALTHOUGH THERE IS WORLDWIDE DEMAND FOR THE KINDS OF PROJECTS FOSTER WHEELER DESIGNS AND BUILDS THERE ALSO IS CONSIDERABLE WORLDWIDE COMPETITION THAT KEEPS PRICES FAIRLY STABLE TO SUCCEED YOU HAVE TO BE ABLE TO PROVIDE A BETTER SERVICE AT THE SAME OR BETTER COST MR SWIFT SAID FOSTER WHEELER WITH NEARLY 380 MILLION IN CASH AT YEAR END SERIOUSLY WOULD CONSIDER MAKING AN ACQUISITION THAT FITS ITS EXISTING BUSINESSES THAT WOULD INCREASE NET INCOME AT LEAST 10 AND THAT COULD ADD AT LEAST 150 MILLION TO 200 MILLION IN REVENUE MR SWIFT SAID FOSTER WHEELER ISN'T TALKING TO ANY SPECIFIC COMPANIES 9404250023 940425 MUTUAL FUNDS BENHAM GROUP 20TH CENTURY WEIGH MERGER BY ROBERT MCGOUGH AND SARA CALIAN STAFF REPORTERS OF THE WALL STREET JOURNAL TWENTIETH CENTURY MUTUAL FUNDS HAS EXPRESSED INTEREST IN MERGING WITH THE SMALLER MUTUALFUND COMPANY BENHAM GROUP ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER IT'S UNCLEAR WHETHER TALKS BETWEEN THE TWO CLOSELY HELD FIRMS WILL LEAD TO A MERGER HOWEVER SENIOR MANAGEMENT AT BENHAM BASED IN MOUNTAIN VIEW CALIF IS BELIEVED TO HAVE CONSIDERED ON WEDNESDAY MORNING AN ACQUISITION PROPOSAL BY TWENTIETH CENTURY BASED IN KANSAS CITY MO THE MERGER POSSIBILITY COMES AT A TIME OF HEIGHTENED CONSOLIDATION IN THE MUTUALFUND INDUSTRY AS FUND GROUPS SEEK GREATER SIZE AND MORE BREADTH IN THEIR OFFERINGS AND A MERGER OF BENHAM LARGELY A BONDFUND HOUSE AND TWENTIETH CENTURY SPECIALIZING IN STOCK FUNDS WOULD ACHIEVE BOTH ALTHOUGH POSSIBLE TERMS AREN'T KNOWN BENHAM COULD FETCH 250 MILLION IF IT WERE PRICED SIMILARLY AS A PERCENTAGE OF ASSETS TO THE ACQUISITION OF DREYFUS CORP PROPOSED IN DECEMBER BY MELLON BANK CORP OR PRICED IN LINE WITH A PUBLICLY TRADED FUND GROUP SUCH AS FRANKLIN RESOURCES INC BENHAM MIGHT BE VALUED AT 265 MILLION BENHAM WOULDN'T COMMENT WHEN ASKED ABOUT MERGER TALKS JAMES STOWERS III PRESIDENT OF TWENTIETH CENTURY SAID WE HAVE NO PLANS AND EVEN IF WE DID WE WOULD HAVE NO COMMENT BASED ON YEAREND 1993 ASSETS THE MERGED ENTITY WOULD BE THE 16THLARGEST MUTUAL FUND GROUP WITH NEARLY 34 BILLION IN MUTUALFUND ASSETS ACCORDING TO DATA FROM STRATEGIC INSIGHT A NEW YORK CONSULTING FIRM NO 15 WAS T ROWE PRICE ASSOCIATES INC BALTIMORE AT YEAR END TWENTIETH CENTURY RANKED AS THE 22NDLARGEST BENHAM WAS THE 38TH INDUSTRY OBSERVERS SAY THAT A MERGER OF THE TWO FIRMS WOULD MAKE SENSE TWENTIETH CENTURY RUNS 25 BILLION IN INVESTMENT ASSETS MOSTLY IN STOCK FUNDS WHILE BENHAM'S SLIGHTLY MORE THAN 10 BILLION IN ASSETS ARE MOSTLY IN BOND FUNDS BOTH FUND GROUPS ARE NOLOADS WHICH SELL DIRECTLY TO INVESTORS WITHOUT LEVYING SALES CHARGES IF IT HAPPENS IT WOULD BE AN EXCELLENT FIT SAYS KURT BROUWER PRESIDENT OF BROUWER & JANACHOWSKI A SAN FRANCISCO INVESTMENT ADVISER WHILE PERFORMANCE OF MOST BOND AND STOCK FUNDS HAS BEEN SUFFERING IN 1994 BOND FUNDS HAVE BEEN HARDER HIT THIS YEAR BY SHAREHOLDER WITHDRAWALS THAT MIGHT PROVIDE AN INCENTIVE FOR BENHAM TO AGREE TO A MERGER ALTHOUGH DISCUSSIONS MAY HAVE STARTED BEFORE INVESTORS BEGAN THEIR FLIGHT FROM BOND FUNDS COMBINING BOND AND STOCK FUNDS WOULD ACHIEVE A SYNERGY SAYS ROBERT BINGHAM AN INVESTMENT ADVISER WITH BINGHAM OSBORN & SCARBOROUGH IN SAN FRANCISCO I THINK WE'RE ENTERING AN ERA WHERE IT'S GOING TO BE MORE AND MORE DIFFICULT FOR THE SMALLER PLAYERS TO COMPETE WITH THESE BIG HOUSES THE NAME OF THE GAME IS HAVING A ROUNDED FAMILY OF MUTUAL FUNDS BOTH GROUPS RELY SOMEWHAT ON INVESTING BY THE NUMBERS OR QUANTITATIVE ANALYSIS BOTH FUND GROUPS ARE CLOSELY HELD WITH MAJORITY STAKES OWNED BY THEIR FOUNDERS JAMES E STOWERS JR AT TWENTIETH CENTURY IS 70 YEARS OLD AND JAMES M BENHAM IS 57 BOTH MEN ARE CONSIDERED ICONOCLASTIC MR BENHAM PERFORMS IN A BIG BAND AND MR STOWERS BOASTS ABOUT THE MONEY HE SAVES BY BRINGING PEANUT BUTTER AND JELLY SANDWICHES TO WORK ONE ELEMENT OF INTEREST IN THE MERGER TALKS IS THAT BOTH FOUNDERS HAVE CHILDREN ACTIVE IN THEIR OWN BUSINESS AND WHILE BENHAM'S FUNDS HAVE TENDED TO CATER TO CAUTIOUS INVESTORS TWENTIETH CENTURY'S HAVE GIVEN THEIR INVESTORS HIGHPOWERED RETURNS BUT WITH WIDE SWINGS IN PRICE 9404250022 940425 ALCOA PLANS TO MOVE HEADQUARTERS CITING RECENT DOWNSIZING PITTSBURGH ALUMINUM CO OF AMERICA IS ABANDONING ITS LANDMARK ALUMINUMFACED HEADQUARTERS FOR A SMALLER BUILDING IN THE WAKE OF DOWNSIZING THE WORLD'S BIGGEST ALUMINUM MAKER SAID IT AGREED TO ACQUIRE TWO ACRES ON THE ALLEGHENY RIVER HERE WHERE IT WILL BUILD A NEW FIVESTORY HEADQUARTERS IT PUT ITS CURRENT 31STORY HEADQUARTERS IN DOWNTOWN PITTSBURGH ON THE BLOCK COMPLETED IN 1952 THE ALCOA BUILDING WAS THE WORLD'S FIRST ALUMINUMFACED BUILDING SOME THREE MILLION POUNDS OF ALUMINUM WERE USED IN ITS CONSTRUCTION FOR SUCH THINGS AS ALLALUMINUM ELEVATORS ELECTRICAL WIRING TRIM AND WINDOW FRAMES BUT THE COMPANY HAS BEEN CUTTING STAFF IN A BID TO BECOME MORE EFFICIENT ALCOA HAS ABOUT 550 HEADQUARTERS WORKERS AFTER SLASHING 400 LAST YEAR IN THE 1950S AND 1960S THE ALCOA BUILDING HOUSED 1800 EMPLOYEES THE NEW BUILDING WHICH WILL COST ROUGHLY 20 MILLION WILL HAVE MORE THAN 250000 SQUARE FEET WHILE THE CURRENT HEADQUARTERS HAS 465000 SQUARE FEET ALCOA WILL PAY 500000 FOR THE LAND WITH PITTSBURGH PAYING ABOUT 6 MILLION FOR INFRASTRUCTURE IMPROVEMENTS UNTIL IT COMPLETES THE NEW HEADQUARTERS ALCOA SAID IT WILL CONSOLIDATE ITS SPACE IN THE CURRENT BUILDING AND LEASE THE REMAINDER ALCOA HAS YET TO SET A CONSTRUCTION START DATE BUT EXPECTS THE PROJECT TO TAKE TWO YEARS ONCE IT BEGINS ALCOA CITED AN OPENOFFICE SYSTEM WITH NO FLOORTOCEILING WALLS FOR SUPERIOR LEVELS OF EMPLOYEE COMFORT AND WORKFLOW EFFICIENCY AMID INNOVATIVE ARCHITECTURE WITHIN A BOLD AND INNOVATIVE ARCHITECTURAL ENVIRONMENT AS ADVANTAGES OF THE NEW BUILDING 9404250021 940425 BUSINESS BRIEF UNITED WATER RESOURCES INC ACQUISITION IS COMPLETED FRENCH CONCERN GETS STAKE UNITED WATER RESOURCES INC SAID IT COMPLETED ITS PREVIOUSLY ANNOUNCED 200 MILLION ACQUISITION OF GWC CORP OF WILMINGTON DEL FORMING ONE OF THE NATION'S LARGEST INVESTOROWNED WATER UTILITIES AS A RESULT OF THE ACQUISITION LYONNAISE DES EAUXDUMEZ SA A FRENCH WATER PURVEYOR THAT HELD 82 OF GWC'S SHARES HOLDS 25 OF UNITED WATER'S OUTSTANDING COMMON STOCK AND 33 MILLION NEW SHARES OF UNITED WATER 5 CONVERTIBLE PREFERENCE STOCK EACH PREFERENCE SHARE CONVERTS TO 08 COMMON SHARE LYONNAISE CAN'T CONVERT THE STOCK UNTIL 1996 IT ALSO ENTERED INTO A 12YEAR AGREEMENT WITH UNITED WATER THAT GOVERNS THE RELATIONSHIP OF THE PARTIES UNITED WATER BASED IN HARRINGTON NJ NOW SERVES MORE THAN TWO MILLION CUSTOMERS IN 14 STATES 9404250020 940425 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT AND DOW JONES NEWS SERVICE ALTERNATIVE RESOURCES CORP INITIAL 12 MILLION SHARES VIA MONTGOMERY SECURITIES AMERICAN BUILDING PRODUCTS INITIAL 26 MILLION SHARES VIA DEAN WITTER REYNOLDS AMERICAN EAGLE GROUP INITIAL 38 MILLION SHARES VIA CS FIRST BOSTON INC ANDRX CORP INITIAL 28 MILLION SHARES VIA KIDDER PEABODY & CO OPPENHEIMER & CO AND GRUNTAL & CO BELIZE HOLDINGS 15 MILLION SHARES VIA MERRILL LYNCH & CO CLARK AUTOMOTIVE PRODUCTS CORP INITIAL 10 MILLION SHARES VIA CS FIRST BOSTON CONTAINER CORP OF AMERICA 100 MILLION OF EIGHTYEAR SENIOR NOTES AND 300 MILLION OF 10YEAR SENIOR NOTES VIA MORGAN STANLEY & CO CRESCENT REAL ESTATE EQUITIES INITIAL 122 MILLION SHARES VIA MERRILL LYNCH DEPARTMENT 56 INC FIVE MILLION SHARES VIA MERRILL LYNCH ECKERD CORP FIVE MILLION SHARES VIA MERRILL LYNCH HEALTHTRUST INC THE HOSPITAL CO 62 MILLION SHARES VIA MERRILL LYNCH AND 200 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP INHALE THERAPEUTIC SYSTEMS INITIAL 25 MILLION SHARES VIA LEHMAN BROTHERS INC IMC FERTILIZER GROUP INC FOUR MILLION SHARES VIA LEHMAN BROTHERS JEFFERSON SMURFIT CORP INITIAL 173 MILLION SHARES VIA MORGAN STANLEY & CO JOSEPH A BANK CLOTHIERS INITIAL THREE MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE JPS AUTOMOTIVE PRODUCTS CORP INITIAL 65 MILLION SHARES AND 150 MILLION OF SENIOR NOTES VIA DONALDSON LUFKIN & JENRETTE KEMPER STRATEGIC INCOME FUND INITIAL FOUR MILLION SHARES VIA KEMPER SECURITIES INC LARIZZA INDUSTRIES INC 83 MILLION SHARES VIA PAINEWEBBER INC MK RAIL CORP INITIAL 86 MILLION SHARES VIA MORGAN STANLEY & CO AND CS FIRST BOSTON PETRO PSC PROPERTIES LP/PETRO FINANCIAL CORP 140 MILLION OF 10YEAR SENIOR NOTES VIA ALEX BROWN & SONS INC PHILIPPINE LONG DISTANCE TELEPHONE CO 250 MILLION OF 10YEAR NOTES VIA BT SECURITIES CORP PHYSICIANS SALES & SERVICE INC INITIAL 18 MILLION SHARES VIA ALEX BROWN & SONS PROFESSIONAL BANCORP INC 250000 SHARES VIA VAN KASPER & CO SAFEGUARD BUSINESS SYSTEMS INC 250 MILLION OF 10YEAR SENIOR NOTES VIA BEAR STEARNS & CO SELECTIVE INSURANCE GROUP INC 17 MILLION SHARES VIA MERRILL LYNCH STENA OFFSHORE NV INITIAL 41 MILLION SHARES VIA CS FIRST BOSTON TELE DANMARK INITIAL 26 MILLION AMERICAN DEPOSITARY SHARES VIA GOLDMAN SACHS & CO UT AUTOMOTIVE INC INITIAL 178 MILLION SHARES VIA SALOMON BROTHERS INC WASHINGTON STATE 335 MILLION OF SERIES 1994 GENERAL OBLIGATION IMPROVEMENT BONDS VIA COMPETITIVE BID TEXAS 75 MILLION OF SERIES 1994 COLLEGE STUDENT LOAN GENERAL OBLIGATION BONDS VIA COMPETITIVE BID ARIZONA STUDENT LOAN ACQUISITION AUTHORITY 1176 MILLION OF BONDS VIA AN AG EDWARDS & SONS INC GROUP KLAMATH FALLS ORE 250 MILLION OF ELECTRICREVENUE BONDS VIA A DILLON READ & CO GROUP PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY 380 MILLION OF REVENUE BONDS VIA A LEHMAN BROTHERS GROUP STATE OF NEW YORK MORTGAGE AGENCY 90 MILLION OF MORTGAGE REVENUE BONDS VIA A MERRILL LYNCH GROUP WISCONSIN HOUSING FINANCE AGENCY 84 MILLION OF SINGLEFAMILY REVENUE BONDS VIA A BEAR STEARNS GROUP 9404250019 940425 WHAT'S NEWS BUSINESS AND FINANCE TENNECO IS EXPECTED TO UNVEIL PLANS THIS WEEK TO SHED ITS CASE 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 CLINTON PICKED ECONOMISTS ALAN BLINDER AND JANET YELLEN FOR THE FED HOPING THAT THEY CAN PERSUADE IT TO INCREASE ITS EMPHASIS ON GROWTH NEITHER IS LIKELY TO SIDE WITH THOSE ON THE FED WHOSE TOP PRIORITY IS REDUCING THE INFLATION RATE BELOW TODAY'S LEVEL THE US URGED GERMANY AND JAPAN TO SPUR GROWTH IN THEIR ECONOMIES AT A WEEKEND MEETING OF OFFICIALS FROM THE G7 NATIONS BUT GERMANY AND JAPAN APPEARED TO RESIST THE MESSAGE SAYING THAT IMF PROJECTIONS FOR THEIR ECONOMIES ARE TOO PESSIMISTIC KIDDER FIRED A TRADER FOR HIDING UP TO 10 MILLION IN LOSSES ON A BONDDERIVATIVES DEAL AS THE GE UNIT'S BONDTRADING WOES APPEAR TO BE DEEPENING THE WHITE HOUSE THREATENED TO CURB WHEAT AND BARLEY IMPORTS FROM CANADA IF CONFLICTS BETWEEN THE TWO COUNTRIES AREN'T SETTLED IN 90 DAYS CANADA THREATENED TO RETALIATE BUT TALKS ARE EXPECTED TO CONTINUE TWENTIETH CENTURY MUTUAL FUNDS HAS EXPRESSED INTEREST IN MERGING WITH SMALLER FUND FIRM BENHAM PEOPLE FAMILIAR WITH THE MATTER SAID APPLE PLANS TO LAUNCH A POWERFUL LINE OF COMPUTER SERVERS IN AN EFFORT TO SIGNIFICANTLY INCREASE MACINTOSH'S PRESENCE IN THE CORPORATE SECTOR BANK OF BOSTON ACKNOWLEDGED THAT ITS SENIOR MANAGEMENT WAS AWARE OF ESCALATING PROBLEMS IN ITS LOAN PORTFOLIO BEFORE PUBLICLY DISCLOSING THE NEWS IN LATE 1989 BUT THE FIRM DENIED IT VIOLATED SECURITIES LAWS IN THE MATTER MICROSOFT WILL RELAX CONDITIONS UPON WHICH IT SHARES PRELIMINARY EDITIONS OF A COMING WINDOWS VERSION HOPING TO DEFUSE A POTENTIALLY NASTY DISPUTE WITH A RIVAL SOFTWARE MAKER DUPONT AGREED TO PAY 214 MILLION TO SETTLE 220 LAWSUITS BY PEOPLE WHO CLAIMED THAT THE COMPANY'S BENLATE FUNGICIDE HURT THEIR CROPS MACHINETOOL ORDERS ROSE 26 IN MARCH FROM FEBRUARY AS DOMESTIC MANUFACTURING COMPANIES MAINTAIN A ROBUST OUTLOOK FOR CAPITAL SPENDING MCDONALD'S IS NEGOTIATING WITH SEVERAL MAJOR RECORD COMPANIES TO SELL COMPACT DISKS AND CASSETTES AT A REDUCED RATE WITH A MENU PURCHASE LIZ CLAIBORNE NAMED AN OUTSIDER PAUL CHARRON VICE CHAIRMAN AND CHIEF OPERATING OFFICER OF THE APPAREL MAKER HE WILL BE GROOMED TO BECOME THE NEXT CEO PEOPLE CLOSE TO CLAIBORNE SAID HOME SHOPPING NETWORK PLANS TO OFFER PRODUCTS OVER PRODIGY'S ONLINE COMPUTER SERVICE NEXT SEPTEMBER THE ONLINE OFFERING WILL LET USERS CHOOSE TO SEE ANY PRODUCTS AT RANDOM NORTHERN TELECOM SIGNED A SWEEPING ACCORD WITH CHINA TO SET UP RESEARCH AND DEVELOPMENT MANUFACTURING AND OTHER OPERATIONS THERE BONDS LEHMAN BROTHERS TREASURY INDEX 515130 OFF 670 COMMODITIES OIL 1714 A BARREL UP 51 CENTS DOW JONES FUTURES INDEX 13759 OFF 132 SPOT INDEX 12997 OFF 079 DOLLAR 10325 YEN OFF 040 16900 MARKS OFF 00010 9404250018 940425 COLEMAN CO ACQUISITIONS WICHITA KAN COLEMAN CO SAID IT COMPLETED ITS ACQUISITION OF SANBORN MANUFACTURING CO AND OF THE MANUFACTURING ASSETS OF METAL YANES LTD IT DIDN'T DISCLOSE TERMS COLEMAN A MAKER OF RECREATIONAL PRODUCTS SAID SANBORN MAKES AIR COMPRESSORS AND OTHER PRODUCTS AND HAD 1993 REVENUE OF 75 MILLION IT SAID METAL YANES WITH 1993 SALES OF 14 MILLION IS A BRAZILIAN MAKER OF CAMPING PRODUCTS 9404250017 940425 CREATING A BUZZ WITH REMEDY IN HAND DRUG FIRMS GET READY TO POPULARIZE AN ILLNESS OBSESSIVE COMPULSIVE DISEASE WILL BE EXPOSED TO BLITZ OF ADS POLLS TALK SHOWS QUEST FOR A CELEBRITY PATIENT BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL FOR YEARS FRAN SYDNEY SCOTCHTAPED HER CARPET TO PICK UP SPECKS OF DIRT WASHED HER KEYS AND SCRUBBED HER SHOES IN THE SINK THE CONNECTICUT MOTHER OF THREE PAINSTAKINGLY HUNG ALL HER CLOTHES IN SEQUENCE BY SIZE AND SPENT HALF AN HOUR MAKING AND REMAKING HER BED SHE INSISTED THAT HER CHILDREN BATHE BEFORE ENTERING THEIR ROOMS THEN STAY THERE TO AVOID RECONTAMINATION UNBEKNOWN TO MS SYDNEY SHE WAS SUFFERING FROM A DISEASE OF THE MIND CALLED OBSESSIVE COMPULSIVE DISORDER FIRST REPORTED BY INCREDULOUS RESEARCHERS AT THE TURN OF THE CENTURY OCD REMAINS A MEDICAL MYSTERY AND MANY PEOPLE HAVEN'T EVEN HEARD OF IT BUT IN COMING MONTHS OCD WILL BE TALKED ABOUT EVERYWHERE BROCHURES ABOUT IT WILL SPROUT IN DOCTORS' OFFICES A PROMINENT WASHINGTON SCHOLAR WILL RELEASE A STUDY DECLARING THAT OCD COSTS THE US ECONOMY 8 BILLION A YEAR DOCTORS WHO SPECIALIZE IN IT WILL START APPEARING ON TALK SHOWS AND GIVING NEWSPAPER INTERVIEWS SO WILL FRAN SYDNEY OFFERING HARROWING SOUND BITES ABOUT HER ORDEAL OCD'S SUDDEN BURST INTO PUBLIC AWARENESS WILL RESULT FROM A CAREFUL STRATEGY BY TWO GIANT DRUG COMPANIES UPJOHN CO OF KALAMAZOO MICH AND THE BELGIAN FIRM SOLVAY SA THEY MAKE THE MEDICINE THAT FINALLY HELPED MS SYDNEY A CLOSE COUSIN OF PROZAC CALLED LUVOX UPJOHN AND SOLVAY SEE A VAST UNTAPPED MARKET FOR LUVOX NOW AWAITING FINAL APPROVAL FROM FEDERAL REGULATORS THE NATIONAL INSTITUTE OF MENTAL HEALTH ESTIMATES THAT OCD AFFLICTS ONE IN 50 AMERICAN ADULTS SOME FOUR MILLION BUT FEWER THAN HALF ARE DIAGNOSED AND TREATED THE DISORDER IS SO EMBARRASSING AND BIZARRE THAT MANY PATIENTS DON'T TALK ABOUT IT AND MANY DOCTORS DON'T THINK TO ASK SO FOR MONTHS IN ANTICIPATION OF LUVOX'S LAUNCH SOLVAY AND UPJOHN HAVE BEEN LAYING PLANS FOR AN OCD PUBLICITY BLITZ THE SELLING OF OCD OFFERS A VIVID EXAMPLE OF HOW DISEASES HAVE COME TO BE PACKAGED AND MARKETED THE STRATEGY SOLVES A VEXING BUSINESS PROBLEM FOR DRUG COMPANIES WHICH INCREASINGLY WANT TO MARKET DIRECTLY TO PATIENTS BUT FACE FOOD AND DRUG ADMINISTRATION CURBS ON ADVERTISING PUBLICIZING A DISEASE SIDESTEPS THE FDA CREATING A WARM AURA OF PUBLICSPIRITEDNESS ALONG THE WAY IF ALL GOES WELL IT ALSO STIRS DEMAND FOR DRUGS THUS PROZAC'S MAKER ELI LILLY & CO SPONSORS ADS ABOUT DEPRESSION WELLCOME PLC DISTRIBUTES BROCHURES ON HOW TO TALK WITH YOUR DOCTOR IF YOU THINK YOU HAVE GENITAL HERPES TREATABLE WITH ITS DRUG ZOVIRAX COMMERCIALS FROM THE GLAXO INSTITUTE FOR DIGESTIVE HEALTH WARN THAT STOMACH PAINS CAN MASK SERIOUS MEDICAL PROBLEMS GLAXO HOLDINGS PLC MAKES THE BIGSELLING ULCER DRUG ZANTAC THE GOAL IS TO MAKE THE DISEASE BETTER KNOWN AND MAKE PATIENTS SEEK TREATMENT OBVIOUSLY IT'S NOT ALL ALTRUISTIC WE WANT TO BE PART OF THE TREATMENT SAYS UPJOHN PUBLICRELATIONS DIRECTOR PHILIP SHELDON SO THE LUVOX MARKETERS ARE SETTING UP TOLLFREE 800 NUMBERS AND COMMISSIONING SCIENTIFIC PAPERS AND A SURVEY OF THE PUBLIC'S VIEWS OF OCD THEY SENT MS SYDNEY TO NEW YORK FOR TWO HOURS OF MEDIA COACHING WITH A BIG PR FIRM SUCH STRATEGIES CAN MAKE A VALUABLE CONTRIBUTION TO PUBLIC HEALTH AND EDUCATION BUT MOST CONSUMERS HAVE NO IDEA THE STUDIES AND PUBLICSERVICE MESSAGES ACTUALLY ARE PART OF A PLAN TO SELL DRUGS THE DRUG COMPANIES TYPICALLY LEAVE FEW FINGERPRINTS RUNNING THEIR DISEASE CAMPAIGNS THROUGH PR FIRMS PATIENT GROUPS INSTITUTES AND OTHER THIRD PARTIES THEY MAY DISCREETLY IDENTIFY A CORPORATE SPONSOR BUT SELDOM A SPECIFIC DRUG AS THE US HEALTHCARE SYSTEM FACES WRENCHING COST CUTS DISEASE PUBLICITY BLITZES ALSO RAISE TROUBLING QUESTIONS ABOUT HOW SPENDING PRIORITIES ARE SET WITH RESOURCES FOR RESEARCH AND TREATMENT INCREASINGLY SCARCE DO WE SIMPLY WANT THE MARKETPLACE TO DECIDE ON THE BASIS OF WHO PUTS HOW MANY ADVERTISING DOLLARS INTO RAISING FEAR AND CONCERN ABOUT DISEASE X VS DISEASE Y IN ORDER TO PROMOTE THEIR PARTICULAR PRODUCTS ASKS JAY WINSTEN ASSOCIATE DEAN OF THE HARVARD SCHOOL OF PUBLIC HEALTH DR WINSTEN RECENTLY LED A PUBLICITY CAMPAIGN TO PROMOTE DESIGNATED DRIVERS BUT HE POINTEDLY TURNED DOWN OFFERS OF GRANTS FROM THE ALCOHOLICBEVERAGE INDUSTRY WORRYING THEY WOULD INEVITABLY RAISE QUESTIONS ABOUT THE CREDIBILITY AND LEGITIMACY OF THE MESSAGE SOLVAY AND UPJOHN KNEW THEY FACED A CHALLENGE WHEN THEY BEGAN MAPPING THEIR OCD GAME PLAN TO MOST PEOPLE OBSESSIVE AND COMPULSIVE ARE JUST QUIRKY PERSONALITY TRAITS ONLY LATELY HAVE DOCTORS AGREED THAT OCD IS A FAIRLY COMMON BRAIN DISORDER THAT CAN RESPOND TO MEDICATION LIKE LUVOX TWO OTHER DRUGS PROZAC AND CIBAGEIGY LTD'S ANAFRANIL HAVE FDA APPROVAL FOR TREATING OCD BUT THEIR MAKERS DO LITTLE TO PUBLICIZE THE DISEASE SO SOLVAY AND UPJOHN DESIGNED A CAMPAIGN TO EMPHASIZE OCD'S SEVERITY AND BIOLOGICAL BASIS BOTH NOT COINCIDENTALLY PERSUASIVE REASONS TO TREAT IT WITH DRUGS THEIR NEW YORK PUBLICRELATIONS COMPANY KETCHUM COMMUNICATIONS CAME UP WITH A CATCHY SLOGAN UNLOCKING THE CAPTIVE MIND IT CLEVERLY ALLUDED BOTH TO TREATING OCD AND OVERCOMING STEREOTYPES ABOUT MENTAL ILLNESS THE IDEA IS TO GET THE MESSAGE TO THE PATIENTS THE PATIENTS' FAMILIES THE PHYSICIANS AND THE POLITICAL MACHINE THAT HAS TO BE SENSITIVE TO REIMBURSEMENT FOR MENTAL HEALTH SAYS UPJOHN'S MR SHELDON WHO SAYS THE CAMPAIGN WILL COST WELL UNDER 1 MILLION WE'RE TRYING TO FIND OPPORTUNITIES TO HAVE THE DISEASE DISCUSSED AS OFTEN AS WE CAN SOMETIMES DESCRIBED AS HICCUPS OF THE BRAIN OCD GRIPS ITS PATIENTS WITH COMPULSIONS AND INCESSANT THOUGHTS THEY RECOGNIZE AS CRAZY BUT STILL CAN'T SHAKE SOME CHECK AND RECHECK THEIR DOOR LOCKS FOR HOURS WASH THEIR HANDS SO OFTEN THEIR SKIN CRACKS OR FIXATE ON TERRIFYING IDEAS LIKE SLAUGHTERING A LOVED ONE LAST OCTOBER AN FDA PANEL SAID LUVOX'S ACTION RAISING THE LEVELS OF A BRAIN CHEMICAL CALLED SEROTONIN CAN APPRECIABLY STIFLE THE RUNAWAY THOUGHTS OF OCD THE FINDING MADE FINAL APPROVAL OF LUVOX ALMOST CERTAIN AND IT MAY COME ANY DAY SO THE LUVOX TEAM STARTED SPREADING MONEY IN STRATEGIC POCKETS EARLY ON THEY LINED UP SUPPORT FROM A CRUCIAL ALLY NAMED JAMES BROATCH IN A CONVERTED SEED WAREHOUSE IN MILFORD CONN HE RUNS THE NONPROFIT OBSESSIVE COMPULSIVE FOUNDATION WITH 8000 MEMBERS AND A HOT LINE THAT GETS 30 CALLS A DAY HE QUICKLY SAW HE COULD BE AN INVALUABLE INTERMEDIARY FOR SOLVAY AND UPJOHN WE HAVE EXCELLENT CREDIBILITY AND THE TRUST FACTOR HE SAYS HE AGREED TO HELP FIND PATIENTS WILLING TO BE INTERVIEWED INCLUDING MS SYDNEY THE COMPANIES AGREED TO HELP UNDERWRITE THE FOUNDATION'S ANNUAL MEETING AND A VIDEO CALLED THE TOUCHING TREE ABOUT A CHILD WITH OCD IN SOME CASES THE COMPANIES WORKED DIRECTLY WITH INFLUENTIAL OCD PATIENTS SUCH AS MARY HULL OF WALNUT CREEK CALIF FOUNDER OF SEVEN OCD SUPPORT GROUPS THE 31YEAROLD ARTIST HAD FOUGHT THE DISORDER SINCE SHE WAS A LITTLE GIRL WHEN SHE BECAME CONVINCED THAT SHE HAD TO SAY A PRAYER FOR ALL SEVEN OF HER SIBLINGS WHILE SHE WASHED HER HANDS AND THAT MOREOVER WHOEVER WAS NAMED LAST IN THE PRAYERS WOULD DIE SO SHE STOOD AT THE SINK IN TERROR FOR HOURS RESHUFFLING HER SEQUENCE OF PRAYERS AND ENDLESSLY WASHING TODAY HER OCD UNDER CONTROL WITH PROZAC MS HULL PAINTS AND SCULPTS DENSE ANGUISHED IMAGES INSPIRED BY HER DISEASE UPJOHN AND SOLVAY OFFICIALS HEARD ABOUT HER WORK AND PROMPTLY MADE HER A BUSY PLAYER IN THE LUVOX PROMOTION THEY COMMISSIONED HER TO DESIGN POSTCARDS CALENDARS AND POSTERS FOR THE DRUG'S LAUNCH NOW THEY ARE ALSO PAYING FOR TRAVELING ART SHOWS AND A VIDEO OF HER WORK THEY JUST STARTED GIVING ME GRANTS RIGHT AND LEFT MS HULL SAYS IN WASHINGTON THE TWO COMPANIES OPENED UP ANOTHER CRUCIAL FRONT AND APPROACHED ROBERT DUPONT A PROMINENT PSYCHIATRIST WHO FORMERLY LED THE NATIONAL INSTITUTE ON DRUG ABUSE AND NOW TEACHES AT GEORGETOWN UNIVERSITY HE ALSO RUNS A PRIVATE FIRM CALLED THE INSTITUTE FOR BEHAVIOR AND HEALTH WHICH TESTS DRUGS AND WRITES POLICY PAPERS LAST YEAR DR DUPONT COMPLETED A STUDY ON THE ECONOMIC COSTS OF ANXIETY DISORDERS A BROAD CATEGORY THAT INCLUDES OCD PANIC DISORDER AND PHOBIAS HIS EYEPOPPING CONCLUSION THE DISORDERS COST THE US ECONOMY 466 BILLION IN 1990 INCLUDING LOST WORK DAYS GREATER AVAILABILITY OF EFFECTIVE RELATIVELY LOWCOST OUTPATIENT TREATMENT OF ANXIETY DISORDERS COULD SUBSTANTIALLY REDUCE THE ECONOMIC AND SOCIAL BURDEN OF THESE COMMON AND OFTEN CRIPPLING MENTAL DISORDERS THE STUDY SAID THE REPORT WAS A PUBLICRELATIONS HOMERUN DRAWING ARTICLES IN THE WASHINGTON POST USA TODAY AND OTHER NEWSPAPERS NONE NOTED THE STUDY'S SPONSOR UPJOHN WHICH ALSO MAKES THE WIDELY USED ANTIANXIETY DRUG XANAX UPJOHN AND SOLVAY ASKED DR DUPONT TO PREPARE A SIMILAR STUDY ON OCD THE PRELIMINARY CONCLUSION DR DUPONT SAYS OCD ALONE COSTS THE US BETWEEN 8 BILLION AND 10 BILLION UPJOHN AND SOLVAY ALSO BECAME BIG BACKERS OF TWO MISSIONS TO BRING UNDIAGNOSED OCD PATIENTS OUT OF THE WOODWORK NEXT MONTH THEY WILL SPONSOR A NATIONWIDE DRIVE TO SCREEN PATIENTS AT 100 HOSPITALS FOR SEVERAL ANXIETY DISORDERS INCLUDING OCD THEY ARE PROVIDING UNIVERSITY OF FLORIDA PSYCHIATRIST WAYNE GOODMAN FUNDS TO DEVELOP A SHORT QUIZ CONSUMERS CAN TAKE TO DETERMINE IF THEY HAVE SIGNS OF OCD DR GOODMAN FORESEES MAGAZINES AND NEWSPAPERS PRINTING THE QUIZ AND ALSO EXPECTS INTERNISTS WILL DISPLAY IT IN WAITING ROOMS A HIGH SCORE WOULD MOST LIKELY LEAD EITHER TO A REFERRAL TO A PSYCHIATRIST OR TO WRITING A PRESCRIPTION DR GOODMAN SAYS IN THE WORKS AS WELL IS INTRIGUING RESEARCH INTO LUVOX'S EFFECTS ON TWO OTHER MALADIES BINGEEATING AND BODY DYSMORPHIC DISORDER IN WHICH NORMALLOOKING PATIENTS INSIST THEY ARE UGLY OR DEFORMED UPJOHN AND SOLVAY ARE HELPING FINANCE BOTH STUDIES THE BIGGEST NEWS ANGLE OF ALL STILL ELUDES THE LUVOX TEAM A CELEBRITY SUFFERER WHO COULD DRAW CROWDS AND CAMERAS THE TEAM HAS AN EXHAUSTIVE SEARCH UNDER WAY FOR THAT PRECIOUS QUARRY TO SOME OCD PATIENTS ALL THESE PROMOTIONS SMACK OF MANIPULATION PEOPLE SHOULD KNOW WHENCE COME THESE PROCLAMATIONS COMPLAINS STACIE LEWIS A NEW YORK OCD SUPPORTGROUP LEADER WHO HAS STRUGGLED WITH THE DISORDER MOST OF HER LIFE AS A CHILD SHE SPENT HOURS ENDLESSLY RECITING ALL HER FRIENDS' ADDRESSES AND BIRTHDAYS AND FORCING HERSELF TO MEMORIZE EVERY FACT SHE READ SHE REACHED A HORRIFYING LOW POINT ON A TRIP ACROSS EUROPE AFTER COLLEGE WHEN SHE CONVINCED HERSELF THAT IF SHE VIOLATED CERTAIN RULES SUCH AS NEVER SHOWING ANGER AND BEING FRIENDLY TO STRANGERS SHE WOULD HAVE TO RETURN TO HER STARTING POINT A SPANISH FISHING VILLAGE SHE SAYS THAT OVER TWO YEARS SHE REPEATEDLY GOT AS FAR AS GERMANY AND SCANDINAVIA BUT RETURNED TO THE VILLAGE MORE THAN 200 TIMES MS LEWIS IS SURE THE OCD CAMPAIGN WILL HAVE JUST THE RESULT SOLVAY AND UPJOHN SEEK MORE PEOPLE WILL WANT TREATMENT THEY'LL SAY WHAT'S THE NEWEST DRUG' IT'LL BE LUVOX SO THEY'LL TRY THAT AND SHE WORRIES ABOUT WHAT THE PUBLICITY WON'T SAY DRUGS ARE SO COSTLY NOBODY HAS ANY IDEA WHICH WILL BENEFIT WHO PEOPLE MAY RELAPSE WHEN THEY GO OFF THEM AND THEY HAVE REAL SERIOUS SIDE EFFECTS IN HER CASE DRUGS OFFERED NO RELIEF SHE HAS FINALLY CONTROLLED OCD THROUGH BEHAVIORAL THERAPY A WIDELY RECOMMENDED APPROACH IT FORCES PATIENTS TO CATALOG ALL THEIR SYMPTOMS CONFRONT THEIR TRIGGER SITUATIONS HEADON FOR EXAMPLE COVERING A WASHER'S HANDS WITH DIRT AND SLOWLY WEAN THEMSELVES AWAY FROM THEIR IRRATIONAL ACTS AND THOUGHTS AT UPJOHN AND SOLVAY OFFICIALS SAY IT IS UNFAIR TO CALL THEIR OCD BLITZ MANIPULATIVE THEY POINT OUT THAT DOCTORS WILL DECIDE FOR THEMSELVES WHETHER TO PRESCRIBE LUVOX A DECISION THE DRUG COMPANIES DON'T CONTROL THEY ALSO SAY THEY DISCLOSE THEIR SUPPORT OF SURVEYS AND RESEARCH AND IF THE PRESS FAILS TO MENTION IT THAT IS HARDLY THEIR FAULT UPJOHN'S MR SHELDON SAYS IT IS ALL VERY WELL TO FRET THAT DISEASE CAMPAIGNS LET THE MARKETPLACE SET HEALTHCARE PRIORITIES BUT HE WONDERS WHO ELSE IS EXPECTED TO SET THEM WE'RE NOT INTO SOCIALIZED MEDICINE WE DON'T HAVE MILLIONS OF DOLLARS OF RESEARCH FUNDING BY BENEVOLENT WEALTH OUT THERE HE SAYS WHY IS THE ASSUMPTION ALWAYS MADE THAT BECAUSE YOU HAVE A VESTED BUSINESS INTEREST YOU'RE LESS CREDIBLE SOME PATIENTS EMPHATICALLY AGREE IN A TIDY WHITE SUBURBAN HOUSE IN NEW YORK CITY'S BOROUGH OF STATEN ISLAND MARY GUARDINO RUNS AN ANXIETYDISORDER TREATMENT AND RESEARCH CENTER CALLED FREEDOM FROM FEAR A SUFFERER OF PANIC ATTACKS SHE IS ALSO A VIRTUOSO FUNDRAISER NETWORKER AND IMPASSIONED PATIENT ADVOCATE YOU CAN NEVER COMPREHEND THE AMOUNT OF SUFFERING THESE PEOPLE HAVE THE AMOUNT OF JOY THAT'S LOST IN THEIR LIVES SHE SAYS SHE HAS NO QUALMS ABOUT ACCEPTING ALL THE MONEY SHE CAN GET FROM THE DRUG INDUSTRY I FEEL DRUG COMPANIES SHOULD BE MANDATED TO GIVE A CERTAIN AMOUNT OF THEIR PROFIT BACK TO CONSUMER EDUCATION SHE SAYS IN HER CENTER'S BASEMENT A SMALL GROUP OF OCD PATIENTS SITS BENEATH LOW FLUORESCENT LIGHTS IN A ROW OF FOLDING METAL CHAIRS FOR A WEEKLY SUPPORTGROUP MEETING ELLEN A YOUNG WOMAN WITH SHORT RED HAIR SPEAKS MATTEROFFACTLY ABOUT HER LATEST OBSESSION THAT HER 15YEAROLD DAUGHTER WAS SWITCHED AT BIRTH WITH ANOTHER BABY I'D WAKE UP AND BE DEVASTATED I COULDN'T GET OUT OF BED SAYS ELLEN WHO WON'T DISCLOSE HER LAST NAME SHE KNOWS HER FEARS ARE IRRATIONAL BUT DESCRIBING HER SYNDROME TO A REPORTER ONLY DEEPENS HER ANXIETY AS I'M SITTING HERE NOW I'M GETTING VERY TENSE SHE SAYS SOMEONE'S GOING TO RECOGNIZE ME IN THE WALL STREET JOURNAL AND SAY THAT'S MY DAUGHTER SHE HAS' WHY AM I DOING THIS SOMEONE'S GOING TO READ THIS AND TAKE MY DAUGHTER AWAY ELLEN SAYS SHE HAS NO OBJECTION WHATEVER TO PUBLICITY CAMPAIGNS ABOUT OCD FUNDED BY DRUG COMPANIES WITH THIS DISEASE SHE SAYS YOU SHOULD TRY TO GET THE MONEY WHEREVER YOU CAN 9404250016 940425 ECONOMY TRACKING THE ECONOMY KEY STATISTICS SCHEDULED TO BE RELEASED THIS WEEK 9404250015 940425 WHO'S NEWS TRIMARK HOLDINGS INC TRIMARK HOLDINGS INC SANTA MONICA CALIF MATTHEW SAVER AND TOFIGH SHIRAZI WERE ELECTED DIRECTORS FILLING TWO LONGTIME VACANCIES AND BRINGING TO FIVE THE NUMBER OF DIRECTORS OF THIS ENTERTAINMENT CONCERN THE COMPANY SAID MR SAVER IS OF COUNSEL TO THE LAW FIRM MYMAN ABELL FINEMAN AND GREENSPAN IN BRENTWOOD CALIF MR SHIRAZI IS PRESIDENT OF INTERCONTINENTAL UNITED INVESTORS CORP A HOUSTONBASED REAL ESTATE DEVELOPER AND INVESTMENT CONCERN 9404250014 940425 WORLD STOCK MARKETS RALLY IN MEXICO PROMPTS CAUTIOUS OPTIMISM PRICES RISE IN TOKYO LONDON AND FRANKFURT BY PAUL B CARROLL STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY THE POWERFUL BOUNCE IN THE MEXICAN STOCK MARKET ON THURSDAY AND FRIDAY AVERTED THE PANIC THAT WAS THREATENING TO SET IN AND MAY ALLOW FOR FURTHER GAINS ANALYSTS AND INVESTORS SAID EVEN THOUGH THE MARKET IS STILL DOWN 15 ON THE YEAR AND OFF MORE THAN 24 SINCE ITS PEAK TWO MONTHS AGO THE ANALYSTS SAID THE MARKET CAN ONLY RISE FURTHER IF MEXICO SOMEHOW AVOIDS MORE OF THE NASTY SURPRISES THAT HAVE HIT IT EVERY WEEK OR TWO SINCE A REBEL UPRISING JAN 1 STARTED THE YEAR OFF ON A BAD NOTE ONE OF THE BIG ISSUES STILL HANGING OVER THE MARKET IS INTEREST RATES THE BENCHMARK 28DAY CETES RATES HAVE MORE THAN DOUBLED IN THE PAST TWO MONTHS TO 18 WHICH WILL FURTHER SLOW AN ALREADY AILING ECONOMY BECAUSE OF THE HIGHER INTEREST RATES TOGETHER WITH THE POLITICAL UNCERTAINTY HERE PRELIMINARY ESTIMATES ARE THAT THE ECONOMY GREW JUST 05 IN THE FIRST QUARTER AND ANALYSTS SAY THAT THE MOST THE ECONOMY CAN EXPAND THIS YEAR IS NOW 2 THAT IS BELOW THE GOVERNMENT PLAN OF 3 AND WELL BELOW ANALYSTS' EARLIER ESTIMATES OF GROWTH AS HIGH AS 4 THE GOVERNMENT HAS BEEN PUSHING UP THE RATES TO TRY TO ATTRACT FOREIGN INVESTMENT AND SUPPORT THE PESO BUT THE SCARY THING FOR INVESTORS WAS THAT EVEN A HUGE INCREASE IN RATES DIDN'T ATTRACT ANY INTEREST AND THE PESO CONTINUED TO BUMP ALONG AT THE BOTTOM OF THE TRADING RANGE SPECIFIED BY THE MEXICAN GOVERNMENT THAT'S WHY IT WAS SUCH A RELIEF FOR INVESTORS WHEN ON FRIDAY THE PESO FINALLY STRENGTHENED A BIT TO 3360 PESOS PER DOLLAR FROM 3367 PER DOLLAR THE RISE REMOVED SOME OF THE PRESSURE ON THE GOVERNMENT TO OFFICIALLY DEVALUE THE PESO A MOVE THAT WOULD HAVE CUT THE VALUE OF FOREIGN INVESTORS' HOLDINGS HERE THE PESO'S GAIN ALSO MAY GIVE THE GOVERNMENT MORE FLEXIBILITY TO LOWER ITS KILLER INTEREST RATES INVESTORS STILL MUST CONFRONT THE LOUSY FIRSTQUARTER EARNINGS THAT MANY MEXICAN COMPANIES ARE REPORTING BUT THEY ARE ENCOURAGED THAT IT HAS BEEN WEEKS SINCE A MAJOR POLITICAL DISRUPTION HAS HIT MEXICO THE THINKING IS THAT IF SOME GROUP WAS DELIBERATELY TRYING TO DESTABILIZE THE COUNTRY AS HAS BEEN SPECULATED THEN SOME OTHER AWFUL EVENT WOULD HAVE HAPPENED BY NOW IN ADDITION INVESTORS LIKE THE FACT THAT THE NEW RULINGPARTY CANDIDATE ERNESTO ZEDILLO HAS BEGUN TO CAMPAIGN MORE FORCEFULLY AND IS LEADING COMFORTABLY IN MOST POLLS INVESTORS HOPE HE'LL WIN WITHOUT HAVING TO CHEAT BECAUSE HE WOULD CONTINUE THE MARKET OPENING BEGUN BY PRESIDENT CARLOS SALINAS INVESTORS NOTE THAT STOCK PRICES HAVE FALLEN TO ABOUT 13 TIMES ESTIMATED 1994 EARNINGS MAKING STOCKS CHEAP BY THAT MEASURE AND THEY SAY COMPANIES SHOULD DO MUCH BETTER IN 1995 AS THE ECONOMY REBOUNDS TOKYO STOCKS POSTED SOLID BROAD GAINS FRIDAY ON ENCOURAGING JAPANESE POLITICAL NEWS A WEAKER YEN AND WALL STREET'S SURGE THE DAY BEFORE LONDON SHARES RALLIED 1 FOLLOWING THE BUOYANT NEW YORK SESSION WHICH ALSO HELPED LIFT FRANKFURT PRICES EQUITIES RALLIED 21 IN PARIS AND 25 IN MADRID BOTH ON NATIONAL INTERESTRATE CUTS THE HONG KONG BOURSE RALLIED 25 WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11342 UP 067 REFLECTING INCREASES IN EUROPEAN AND ASIA/PACIFIC MARKETS AND A DROP IN AMERICAN MARKETS IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 8282 POINTS THURSDAY ROSE 16503 TO 1996439 IN TRADING MONDAY THE NIKKEI INDEX FELL 23354 POINTS TO CLOSE THE MORNING SESSION AT 1973085 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT A MODERATE 300 MILLION SHARES UP FROM 2465 MILLION SHARES A DAY EARLIER GAINERS OVERWHELMED LOSERS 687305 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH FELL 593 POINTS THURSDAY ROSE 830 TO 161580 STOCKS SURGED 14 IN THE SESSION'S FIRST 20 MINUTES FOLLOWING THE THURSDAY RALLY ON WALL STREET THE YEN'S DECLINE IN CURRENCY MARKETS AND THE JAPANESE SOCIAL DEMOCRATIC PARTY'S WILLINGNESS TO COMPROMISE ON TAX REFORM WHICH PAVED THE WAY TO FORM A NEW GOVERNMENT THE MARKET HAD ALREADY FACTORED INTO PRICES THE POLITICAL COALITION'S CHOICE OF DEPUTY PRIME MINISTER TSUTOMU HATA TO BECOME PRIME MINISTER AND THUS DIDN'T REACT TO THE OFFICIAL ANNOUNCEMENT IN THE AFTERNOON IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX CLIMBED 325 POINTS TO 31337 NEAR THE SESSION PEAK OF 31365 THE FT 30STOCK INDEX RALLIED 302 POINTS OR 12 TO 25009 VOLUME WAS 8162 MILLION SHARES COMPARED WITH 7957 MILLION SHARES IN THE PREVIOUS SESSION THE 100STOCK INDEX ROCKETED UP ALMOST 29 POINTS AT THE OPENING IN REACTION TO THE PREVIOUS DAY'S JUMP BY NEW YORK STOCKS THE LONDON ENTHUSIASM IGNORING FUNDAMENTALS WAS STRONG ENOUGH TO OVERCOME BEARISH FALLOUT FROM NEW BRITISH BANKLENDING DATA FOR MARCH AS RATES ROSE MORE THAN EXPECTED FROM FEBRUARY IN FRANKFURT THE DAX 30STOCK INDEX ROSE 1695 POINTS TO 221392 WITH ADVANCING ISSUES OUTPACING DECLINERS 228 THOUGH ACTIVITY WAS LIMITED MARKED BY A LACK OF SELLING RATHER THAN ANY AGGRESSIVE BUYING THE GAINS ALSO WERE PROMPTED BY A SLIGHT RALLY IN THE GERMAN BOND MARKET AND BY THE GERMAN ECONOMICS MINISTER'S COMMENTS THAT THE GOVERNMENT IS CONFIDENT THE ECONOMY WILL EXPAND AT LEAST 1 THIS YEAR INDICATING THE RECESSION IS BEAT IN PARIS STOCKS' SHARP RISE AFTER A THREEDAY LOSING STREAK WAS UNUSUAL AS IT CAME ON THE LAST DAY OF A TRADING ACCOUNT BUT IT FOLLOWED BY ONE DAY THE FRENCH CENTRAL BANK'S INTERESTRATE REDUCTION IN MADRID FOLLOWING A STRING OF DISAPPOINTING SESSIONS STOCKS ROSE 25 AMID NEW OPTIMISM BECAUSE OF THE RISE THURSDAY ON WALL STREET THE SPANISH CENTRAL BANK'S CUT IN ITS BENCHMARK INTEREST RATE EARLY FRIDAY AND THE HEADY RECOVERY IN THE SPANISH BOND MARKET IN HONG KONG REBOUNDING PROPERTY SHARES PUSHED THE MAIN INDEX UP 25 THE FIRST GAIN IN SEVEN SESSIONS BANKS ALSO ROSE AND SAFEHAVEN UTILITY ISSUES CONTINUED TO PACE THE MARKET SIGNALING STUBBORN UNCERTAINTY SUCH AS ABOUT INTEREST RATES 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 9404250013 940425 BUSINESS BRIEF KOREA MACHINERY CO BEARING MAKER EXPANDS ROLE WITH AIRCRAFTPARTS PLANTS KOREA MACHINERY CO A SOUTH KOREAN BEARING MAKER SAID IT RECENTLY STARTED OPERATING AN AIRCRAFTPARTS PLANT IN CHEONAN SOUTHWEST OF SEOUL TO MAKE INTEGRATED SUBACTUATORS FOR FLIGHT CONTROL THE COMPANY HAS INVESTED 30 BILLION WON 371 MILLION OVER ONE YEAR FOR THE CONSTRUCTION OF THE PLANT IN A BID TO EXPAND ITS BUSINESS INTO THE MORE LUCRATIVE AIRCRAFTPARTS SECTOR A SPOKESMAN SAID HE SAID THE COMPANY HAS RECEIVED 60 BILLION WON WORTH OF ORDERS FROM DOMESTIC AIRCRAFT ASSEMBLERS AND IS NEGOTIATING WITH THEM FOR ORDERS VALUED AT 50 BILLION WON THE PLANT CAN MAKE 30 BILLION WON WORTH OF THE AIRCRAFT PARTS A YEAR THE OFFICIAL SAID 9404250012 940425 INTERNATIONAL WASHINGTON INSIGHT US NEEDS BREATHER FROM TRADE PACTS BUT NOT AT EXPENSE OF LONGTERM GOALS BY TIM CARRINGTON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AFTER THE MARATHON HORSETRADING REQUIRED TO PASS NAFTA AND NEGOTIATE GATT WASHINGTON IS REELING FROM A CASE OF TRADE FATIGUE WITH LAWMAKERS PLEADING FOR A RESPITE FROM SWEEPING TRADE CAMPAIGNS AND A GRAIN DISPUTE WITH CANADA IN THE HEADLINES BOLD VISIONS OF EXTENDING THE NORTH AMERICAN FREE TRADE AGREEMENT SOUTHWARD TO TIERRA DEL FUEGO AT THE BOTTOM OF SOUTH AMERICA MAY SLIP FROM THE AGENDA THE ADMINISTRATION SHOULD LET THE LEGISLATORS REST FOR AWHILE BUT IT SHOULD COMMIT TO FREE TRADE THROUGHOUT THE AMERICAS AS A LONGTERM AIM FREE TRADE WITH CHILE ARGENTINA AND OTHER REFORMING LATIN ECONOMIES MAKES SENSE FOR THE SAME REASONS NAFTA MADE SENSE TRADE DEALS ARE A GOOD WAY OF LOCKING IN CONSTRUCTIVE ECONOMIC TRANSITIONS IN PLACES TO WHICH THE US LOOKS FOR FUTURE MARKETS SO LONG AS THE CLINTON ADMINISTRATION HOLDS TO A VISION OF HEMISPHERIC FREE TRADE IT SHOULD BE ABLE TO CATCH ITS BREATH FROM THE LAST TWO TRADE ROUNDS THE LATINS THEMSELVES ARE BUSY SPROUTING SUBREGIONAL TRADE GROUPS AMONG THEMSELVES THERE'S MERCOSUR WHICH HAS OPENED UP TRADE AMONG BRAZIL URUGUAY AND PARAGUAY THERE ALSO ARE ANDEAN AND CENTRAL AMERICAN TRADE GROUPINGS THESE ARRANGEMENTS ARE INCREASING BILATERAL TRADE INSIDE SOUTH AMERICA AND CAN LESSEN SOME OF THE PRESSURE FOR AN IMMEDIATE EXPANSION OF NAFTA THEY'RE TRYING TO EMULATE NAFTA ON A SMALLER SCALE AND IT'S MAKING THEM MORE ATTRACTIVE TO FOREIGN INVESTORS SAYS ROBERT HORMATS VICE CHAIRMAN OF GOLDMAN SACHS & CO IF THESE GROUPS CAN SUSTAIN THEIR COLLECTIVE REFORMS THEY CAN HAVE A CHANCE OF ENTERING NAFTA COLLECTIVELY IDEALLY THE GROUPS COULD FUNCTION THE WAY THE EUROPEAN FREE TRADE ASSOCIATION DID ALONGSIDE THE LARGER EUROPEAN COMMUNITY EFTA MADE UP OF THE NORDIC AND ALPINE COUNTRIES HAS GONE ON TO MOVE TOWARD EFFECTIVE INCORPORATION IN AN EXPANDED EUROPEAN UNION BUT IF THE LATIN TRADE CLUBS ARE TO FUNCTION AS A TRANSITION TO A MORE ENCOMPASSING FREETRADE ARRANGEMENT THE CLINTON ADMINISTRATION NEEDS TO MAKE IT CLEAR THAT THIS IS THE LONGRANGE GOAL ADMINISTRATION OFFICIALS HAVE REAFFIRMED THEIR COMMITMENT TO FREE TRADE WITH CHILE THE PREMIER SOUTH AMERICAN REFORMER THEY SHOULD ALSO MAKE A STRONG PITCH FOR FREE TRADE WITH OTHER REFORMING LATIN ECONOMIES IN TWO CONGRESSIONALLY MANDATED STATEMENTS ON FUTURE TRADE INITIATIVES IN MAY AND IN JULY BY SIGNALING A CLEAR SET OF TRADE GOALS FOR THE AMERICAS THE US CAN HELP STRENGTHEN BUDDING REFORM EFFORTS NOT ALL OF THESE EFFORTS CURRENTLY LOOK AS SOLID AS THOSE IN MEXICO OR CHILE VENEZUELA SHAKEN BY BANKING TROUBLES MAY PAUSE IN ITS REFORM DRIVE AND BRAZIL THOUGH HELPED BY THE DEBT RESTRUCTURING IT HAMMERED OUT WITH CREDITORS EARLIER THIS MONTH STILL IS HELD BACK BY INFLATION VERTIGO AND OTHER DOMESTIC ECONOMIC WOES A STRONG SIGNAL FROM THE US WOULD HELP ANCHOR THE IMPROVEMENTS AND REDUCE UNPREDICTABILITY SAYS PETER HAKIM HEAD OF THE INTERAMERICAN DIALOGUE A WASHINGTONBASED THINK TANK AT THE MOMENT HE ADDS THE LATIN AMERICANS ARE SOMEWHAT DISAPPOINTED BY THE SENSE THAT HEMISPHERIC FREE TRADE NO LONGER SEEMS PROMINENT ON THE US AGENDA ANOTHER REASON FOR WASHINGTON NOT TO DRAG ITS FEET ON EXTENDING FREE TRADE IS THAT OVER TIME THE SOUTH AMERICAN TRADE GROUPS COULD BECOME MORE OSSIFIED AND LESS ADAPTABLE TO A BROADER TRADE ACCORD GARY HUFBAUER OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS WARNS THAT 10 YEARS FROM NOW THESE REGIONAL GROUPS COULD BECOME MORE RESISTANT HE ADDS THAT THE LONGER NAFTA EXISTS WITHOUT FURTHER ENLARGEMENT THE LESS PLASTIC IT BECOMES HE URGES THE US TO HAVE AN EXPANSION EFFORT UNDER NEGOTIATION BY 1997 A MORE NEARTERM GOAL SHOULD BE TO SET AN AGREEMENT ASSURING THE CARIBBEAN NATIONS THEY WON'T BE HURT BY NAFTA'S PASSAGE AS IT STANDS NOW THESE COUNTRIES COULD SUFFER IF US COMPANIES DIVERT TRADE FROM THE CARIBBEAN TO MEXICO WHERE CERTAIN TARIFFS ARE DROPPING FASTER BECAUSE OF NAFTA PUTTING THE SMALLER CARIBBEAN NATIONS AT A DISADVANTAGE ISN'T A CONSEQUENCE THE US EVER SOUGHT AND THE ADMINISTRATION SHOULD MAKE SURE THIS UNINTENDED EFFECT DOESN'T OCCUR BEYOND THAT A MORE AMBITIOUS EXPANSION OF NAFTA TO THE SOUTH IS IN US INTERESTS ONE GOVERNMENT ECONOMIST POINTS OUT THAT AS THE LATIN COUNTRIES MODERNIZE THE US IS PERFECTLY MATCHED TO BE A TRADING PARTNER SUPPLYING CAPITAL GOODS AND BUSINESS SERVICES EXPANDING NAFTA HE ADDS IS A NOBRAINER 9404250011 940425 BUSINESS BRIEF PENTAGON BACKS ARMY IN PICK OF LORAL ERINT NOT RAYTHEON PATRIOT LEXINGTON MASS RAYTHEON CO SAID THAT THE PENTAGON AGREED WITH THE ARMY THAT LORAL CORP'S ERINT MISSILE SHOULD BE USED INSTEAD OF RAYTHEON'S PATRIOT MISSILE IN ITS NEXTGENERATION ANTIMISSILE DEFENSE SYSTEM THE ARMY ANNOUNCED ITS PREFERENCE IN FEBRUARY EARLIER THIS MONTH A DEFENSE DEPARTMENT REVIEW PANEL UPHELD THE SELECTION THE FINAL STEP IN THE PROCESS IS APPROVAL OF ERINT BY THE DEFENSE ACQUISITION BOARD OF THE PENTAGON WHICH IS EXPECTED NEXT MONTH RAYTHEON WILL CONTINUE TO MAKE THE MISSILE LAUNCHERS WHICH ACCOUNT FOR WHAT ANALYSTS SAY IS ABOUT 60 OF THE REVENUE IN THE MISSILE SYSTEM IT ALSO WILL CONTINUE TO SELL PATRIOT MISSILES TO US ALLIES WHO BUY THE SYSTEM THE DEFENSE DEPARTMENT SAID IT PREFERRED THE ERINT MISSILE TO RAYTHEON'S PROPOSED MULTIMODE MISSILE BECAUSE ERINT PROVIDED MORE RELIABLE HIGHER LETHALITY AT HIGHER ALTITUDE TO KNOCK OUT MISSILES CARRYING WEAPONS OF MASS DESTRUCTION SUCH AS CHEMICAL AND BIOLOGICAL WARHEADS IT SAID THAT RAYTHEON'S SYSTEM WAS BETTER AT LOWER ALTITUDES BUT THAT ERINT ALSO WAS BETTER THAN CURRENT MISSILE SYSTEMS ALTHOUGH RAYTHEON WILL REMAIN THE PRIME CONTRACTOR LORAL'S VICTORY WILL END RAYTHEON'S LONG DOMINANCE OF SOPHISTICATED AIRDEFENSE MISSILE SYSTEMS THE PATRIOT IS RAYTHEON'S LARGEST DEFENSE CONTRACT ACCOUNTING FOR ABOUT 12 BILLION OF THE COMPANY'S 92 BILLION IN TOTAL REVENUE LAST YEAR THE PATRIOT MISSILE WON FAME FOR ITS ROLE IN THE GULF WAR THE PENTAGON DECISION WILL HAVE VIRTUALLY NO EFFECT ON RAYTHEON AT THIS POINT THIS IS A TURNOFTHECENTURY EVENT A SPOKESWOMAN SAID 9404250010 940425 GSA PENTAGON MAY LINK COMMUNICATIONS SYSTEMS WASHINGTON THE GENERAL SERVICES ADMINISTRATION AND THE PENTAGON SAID THEY'RE LOOKING INTO COMBINING THEIR MULTIBILLIONDOLLAR COMMERCIAL TELECOMMUNICATIONS SYSTEMS THE GSA IS THE FEDERAL GOVERNMENT PURCHASING MANAGER AND HOUSEKEEPING AGENCY ITS TELECOMMUNICATIONS SYSTEM KNOWN AS FTS2000 INVOLVES CONTRACTS WITH SPRINT CORP AND AT&T CORP EXPIRING IN 1998 THE DEFENSE DEPARTMENT HAS A CONTRACT WITH AT&T THAT EXPIRES IN 1996 COMBINING THE SYSTEMS COULD MEAN BIG SAVINGS AND ALSO HELP SPUR THE DEVELOPMENT OF STATEOFTHEART COMMUNICATIONS LINKS THIS CONSOLIDATED EFFORT WOULD FORM THE FOUNDATION OF A GLOBAL INFORMATION INFRASTRUCTURE SAID EMMETT PAIGE JR AN ASSISTANT SECRETARY OF DEFENSE WHO HEADS THE PENTAGON'S INFORMATION RESOURCES MANAGEMENT 9404250009 940425 TECHNOLOGY & ENVIRONMENT IN THE LAB POLLUTION TESTS FOCUS ON CARS SITTING STILL BY ROBERT L SIMISON STAFF REPORTER OF THE WALL STREET JOURNAL MILFORD MICH FROM A POLLUTION POINT OF VIEW YOUR CAR CAN DO A LOT OF DAMAGE JUST STANDING THERE BUT FOR AUTO MAKERS TAKING CARE OF POLLUTION FROM EVAPORATION WHEN THE ENGINE IS OFF IS RELATIVELY CHEAP AND IF CARCAUSED SMOG DIMINISHES AUTHORITIES MAY NOT FEEL FORCED TO INTRODUCE MORECOSTLY CONTROLS DOWN THE ROAD THERE'S ONLY ONE BIG PROBLEM THERE IS NO EASY WAY TO MEASURE JUST HOW MUCH BAD STUFF COMES OUT OF A SLUMBERING CAR SO IN ITS EMISSIONS LABS HERE GENERAL MOTORS CORP IS BUILDING A CONTROVERSIAL ROW OF NINE HERMETICALLY SEALED ALUMINUM AND STAINLESSSTEEL GARAGES WITH ODDLOOKING PLASTIC LUNGS HANGING OUTSIDE INSIDE NEW CARS SIT FOR THREE SIMULATED SWELTERING DAYS AND THREE SIMULATED WARM NIGHTS AS COMPUTERIZED MONITORS KEEP TRACK THE CARS WITH THEIR ENGINES TURNED OFF QUIETLY POLLUTE THE AIR IN THE TEST SHEDS AS EVAPORATED GASOLINE SEEPS OUT OF THEIR FUEL SYSTEMS THIS IS ONE OF THE FINAL FRONTIERS IN THE QUARTERCENTURYOLD REGULATORY PUSH FOR CLEANER CARS EVAPORATIVE EMISSIONS CONTRIBUTE AT LEAST AS MUCH TO SMOG AS TAILPIPE EMISSIONS BUT REGULATORS AND MOST OTHER AUTO MAKERS AGREED ONLY RELUCTANTLY TO GO ALONG WITH THIS NEW TEST PROCEDURE WHICH IS TO BE PHASED IN DURING 1996 GM AND CALIFORNIA'S POWERFUL CLEANAIR REGULATORS WERE THE CHIEF ADVOCATES ONE OBJECTION WAS THAT EACH TEST SHED COSTS ABOUT 225000 TO BUILD COMPARED WITH JUST 40000 FOR THE SHEDS THEY REPLACE AND THE NEW FEDERAL TEST RULES REQUIRE A TWODAY OR THREEDAY REALTIME SIMULATION OF GRADUALLY RISING AND FALLING TEMPERATURES COMPARED WITH THE PREVIOUS ONEHOUR TEST INVOLVING AN ELECTRICALLY HEATED FUEL TANK IT'S ALMOST A POINT OF SHAME THAT YOU COULDN'T COME UP WITH A ONEDAY TEST THAT WOULD PREDICT THREEDAY LOSSES SAYS KELLY BROWN THE DIRECTOR OF FORD MOTOR CO'S EMISSIONS AND FUELECONOMY OFFICE WE'VE DRIVEN UP THE COMPLEXITY AND COSTS OF THE TESTS NEITHER HE NOR CLEANAIR REGULATORS THOUGH QUESTION THE IMPORTANCE OF SLASHING POLLUTION CAUSED BY EVAPORATION IT'S AN INCREDIBLY COSTEFFECTIVE WAY TO CONTROL EMISSIONS SAYS JOANNE GOLDHAND THE CHIEF OF THE FEDERAL ENVIRONMENTAL PROTECTION AGENCY'S ENGINE AND VEHICLERESEARCH BRANCH IN ANN ARBOR MICH THE EPA FIGURES THAT NEW RULES ON EVAPORATIVE EMISSIONS WILL REDUCE HYDROCARBONS IN THE AIR AT A COST OF 380 A TON COMPARED WITH 6018 A TON FROM NEW RULES ON TAILPIPE EMISSIONS WHY WAS GM SO ADAMANT ABOUT ITS APPROACH TO TESTING FOR SUCH EMISSIONS DESPITE THE DOLLAR AND TIME COST THE OLD TEST WAS FUNDAMENTALLY FLAWED SAYS KEVIN CULLEN THE MANAGER OF TESTSYSTEMS ENGINEERING AT GM'S INSTALLATION HERE IN THAT PROCEDURE A TANK FULL OF GASOLINE WAS HEATED FROM 68 TO 84 DEGREES FAHRENHEIT OVER ONE HOUR THE EMISSIONS WERE MEASURED AND THE RESULTS WERE USED TO PREDICT REALWORLD FUEL LOSSES BUT MR CULLEN SAYS IN THE LATE '80S WE FOUND VERY DIFFERENT RESULTS IN TESTS OVER 12 TO 24 HOURS THAT IS BECAUSE THE PRINCIPAL DEVICE FOR SOAKING UP EVAPORATED GASOLINE IN A CAR'S FUEL SYSTEM A CANISTER FULL OF CHARCOAL BEHAVES DIFFERENTLY OVER LONGER PERIODS OF TIME AND GREATER TEMPERATURE SWINGS THAN THE SHORTTERM TEST COULD PREDICT IF WE DID A STANDARD TEST WE MIGHT FIND THREEQUARTERS OF A GRAM OF EVAPORATION BUT OVER THE NEXT NINE OR 10 HOURS YOU MIGHT HAVE SEVEN OR EIGHT GRAMS MORE MR CULLEN SAYS THE EPA PROPOSED A FOURHOUR TEST BUT GM ARGUED THAT WOULDN'T DO EITHER WE DECIDED THE ONLY WAY TO DO IT WOULD BE ON A REALTIME BASIS TO GM THAT MEANS DRIVING A CAR FOR MORE THAN AN HOUR ON A DYNAMOMETER IN A HUGE STAINLESSSTEEL ROOM HEATED TO 95 DEGREES 105 DEGREES FOR CALIFORNIA INSTRUMENTS MEASURE HOW MUCH EVAPORATIVE POLLUTION THE CAR GENERATES ASIDE FROM TAILPIPE EMISSIONS THEN THE CAR SITS THERE AT THE SAME TEMPERATURE TO MEASURE HOW MUCH MORE EVAPORATED FUEL LEAKS OUT DURING THE NEXT HOUR FINALLY THE CAR GOES INTO ONE OF THE SPECIAL TEST SHEDS WHERE TEMPERATURES CYCLE THROUGH THREE DAYS OF HEATING AND COOLING THE PLASTIC LUNGS TAKE CARE OF THE EXPANSION AND CONTRACTION OF AIR INSIDE DURING THE TEST THE EPA HAS ENDORSED A TEST PROCEDURE SIMILAR TO GM'S AND AN ALTERNATIVE INVOLVING A SHORTER DRIVE AND A TWODAY EVAPORATIVE TEST UNDER THE NEW FEDERAL RULES A CAR CAN'T PUT OUT MORE THAN TWO GRAMS OF EVAPORATED HYDROCARBONS IN ANY 24HOUR PERIOD UNCONTROLLED SUCH EMISSIONS COULD BE AS HIGH AS 30 GRAMS A DAY CLEARLY THE TOUGHER TEST PROCEDURES RAISE THE REQUIREMENTS FOR EVAPORATIVEEMISSION CONTROLS GM SAYS IT CAN PASS THE NEW TESTS BY SPENDING ABOUT 80 A CAR ON A MORESOPHISTICATED LARGERCAPACITY CHARCOAL CANISTER AND CONTROL SYSTEM TOGETHER WITH HIGHERQUALITY MATERIALS FOR FUEL SEALS LINES AND TANKS THAT OUTLAY WILL CUT MORE POLLUTION THAN THE 1500 A CAR THAT GM FIGURES IT WILL COST TO COMPLY WITH THE NEWEST RULES FOR CLEANER TAILPIPE EMISSIONS DESPITE HIS LACK OF ENTHUSIASM FOR GM'S APPROACH TO TESTING FORD'S MR BROWN SAYS WHAT WE'RE DOING ON EVAPORATIVE EMISSIONS IS THE MOST IMPORTANT WORK WE CAN DO TAILPIPE EMISSIONS ARE SO CLOSE TO ZERO THAT YOU DON'T GAIN MUCH FROM CUTTING THEM IN HALF WHILE THE CAR COMPANIES STILL HAVE TO COMPLY WITH BOTH THE CURRENT NEW TAILPIPE STANDARDS AND THE NEW EVAPORATIVE STANDARDS THEY STAND TO BENEFIT IN THE FUTURE FROM TESTING ACCURATELY FOR REALWORLD EVAPORATION LOSSES IN THE LONG RUN SAYS THE EPA'S MS GOLDHAND IF THERE ARE FEWER SMOG PROBLEMS IN MAJOR CITIES THEN WE WON'T NEED TO SET AN EVEN LOWER STANDARD FOR TAILPIPE EMISSIONS AS FEDERAL LAW NOW PROVIDES FOR THE AGENCY TO DO AFTER 2003 IF CONDITIONS WARRANT 9404250008 940425 PEOPLE PATTERNS BY DIANE CRISPELL OF AMERICAN DEMOGRAPHICS MAGAZINE WORKING WOMEN WHO GET PROMOTIONS USUALLY GET RAISES BUT NOT ALWAYS PROMOTIONS MAY ALSO INVOLVE GREATER RESPONSIBILITY MORE CHALLENGING WORK AND INCREASED AUTHORITY OVER OTHERS AMONG WORKING WOMEN AGED 37 TO 48 IN 1991 14 REPORTED RECEIVING A PROMOTION IN THE PAST YEAR ACCORDING TO THE NATIONAL LONGITUDINAL SURVEYS SPONSORED BY THE BUREAU OF LABOR STATISTICS AND CONDUCTED BY THE CENTER FOR HUMAN RESOURCE RESEARCH OF OHIO STATE UNIVERSITY FOR 87 OF THESE WOMEN THE PROMOTION INCLUDED AN INCREASE IN PAY EIGHTYTWO PERCENT OF THOSE WHO GOT PROMOTIONS TOOK ON MORE RESPONSIBILITY 73 EXPERIENCED MORE CHALLENGING WORK AND 54 GOT MORE AUTHORITY OVER OTHERS WOMEN COLLEGE GRADUATES WHO WERE PROMOTED WERE ESPECIALLY LIKELY TO SEE MORE MONEY 94 COMPARED WITH 90 OF HIGH SCHOOL GRADUATES AND 79 OF HIGH SCHOOL DROPOUTS AND THOSE WITH SOME COLLEGE EDUCATION WOMEN WITH SOME COLLEGE EDUCATION BUT NO DEGREE WERE MOST LIKELY TO RECEIVE MORE AUTHORITY AND TAKE ON MORE RESPONSIBILITY 63 AND 88 RESPECTIVELY HOWEVER COLLEGE GRADUATES WERE LEAST LIKELY TO GET MORE CHALLENGING WORK 60 COMPARED WITH 78 OF HIGH SCHOOL GRADUATES THIS MAY BE BECAUSE THEIR WORK TENDED TO BE CHALLENGING EVEN BEFORE A PROMOTION WOMEN MANAGERS WERE MORE LIKELY THAN WOMEN IN OTHER OCCUPATIONS TO GET PROMOTED AND TO EXPERIENCE ALL FOUR TYPES OF CHANGES IN THEIR JOBS PERHAPS BECAUSE MANY WERE BECOMING MANAGERS FOR THE FIRST TIME THOSE IN SERVICE OCCUPATIONS WERE LEAST LIKELY TO GET PROMOTIONS 9 AND THOSE WHO DID WERE LEAST LIKELY TO GET RAISES 76 WOMEN WHO WORKED IN BLUECOLLAR JOBS WERE LEAST LIKELY TO GET MORE RESPONSIBILITY IN A PROMOTION 74 AND THOSE IN CLERICAL OR SALES POSITIONS WERE LEAST LIKELY TO GET MORE CHALLENGING WORK OR AUTHORITY 67 AND 41 RESPECTIVELY PEOPLE WITH RELATIVELY HIGH INCOMES ALSO EXPECT TO INHERIT A LOT TWOTHIRDS OF RESPONDENTS AGED 30 TO 60 LIVING IN HOUSEHOLDS WHERE ONE INCOME IS 40000 OR MORE EXPECT TO INHERIT MONEY OR VALUABLES ACCORDING TO A SURVEY CONDUCTED FOR HARTFORDBASED PHOENIX HOME LIFE MUTUAL INSURANCE BY YANKELOVICH PARTNERS HALF EXPECT TO RECEIVE AT LEAST 100000 THE MEDIAN AMOUNT IS 135000 OLDER RESPONDENTS AND THOSE WITH HIGHER INCOMES EXPECT TO INHERIT MORE THAN THOSE WHO ARE YOUNGER AND LESS AFFLUENT EVEN THOUGH 86 OF PROSPECTIVE HEIRS SAY THEY ARE NOT COUNTING ON AN INHERITANCE MOST HAVE A GOOD IDEA OF HOW THEY WOULD USE ONE NEARLY HALF PLAN TO INVEST IT ANOTHER 11 PLAN TO USE THE INCOME FOR COLLEGE TUITION 10 WOULD PUT IT INTO SAVINGS AND 8 WOULD PASS IT ON TO CHILDREN OR OTHER FAMILY MEMBERS SIX PERCENT PLAN TO SPEND IT 5 EXPECT TO PAY OFF BILLS 4 WOULD BUY A HOME AND 3 SAY THEY'D TRAVEL FIFTEEN PERCENT AREN'T SURE WHAT THEY WOULD DO WITH IT DESPITE THESE EXPECTATIONS 73 OF RESPONDENTS HAVE NOT BEEN INVOLVED IN PLANNING THE WILLS OF THE PEOPLE FROM WHOM THEY EXPECT AN INHERITANCE AND HALF HAVEN'T EVEN DISCUSSED THE TERMS OF THOSE WILLS WHEN IT COMES TO BEQUEATHING THEIR OWN ASSETS 40 OF RESPONDENTS HAVEN'T YET MADE A WILL OF THOSE 40 DON'T PLAN TO UNLIKE THE LACK OF COMMUNICATION REGARDING THEIR OWN EXPECTATIONS 79 OF THOSE WHO HAVE MADE WILLS HAVE TALKED WITH THEIR FAMILIES ABOUT THEM ONETHIRD OF ADULTS SAY THEY ARE SHOPPING AT MALLS LESS FREQUENTLY THAN THEY DID A YEAR AGO MONEY AND TIME ARE THE MAIN REASONS AND EVEN FAITHFUL SHOPPERS ECHO THESE COMPLAINTS THE REASON CITED MOST OFTEN IS THAT MALLS ARE TOO EXPENSIVE 24 FINDS A SURVEY BY MARITZ MARKETING RESEARCH OF FENTON MO SIXTEEN PERCENT OF THOSE WHO HAVE CURTAILED THEIR MALL SHOPPING SAY THEY ARE TOO BUSY AND 8 BLAME TRAFFIC AND PARKING PROBLEMS SEVEN PERCENT SAY THEY DON'T NEED TO SHOP AS MUCH AS THEY DID WHILE 6 CAN'T AFFORD TO ANOTHER 11 HAVE APPARENTLY MOVED FURTHER FROM MALLS 6 SAY THEY ARE SHOPPING LESS FREQUENTLY BECAUSE THERE IS NO MALL IN THEIR AREA AND 5 CITE POOR LOCATION BUT EVEN PEOPLE WHO SHOP AT MALLS AS MUCH OR MORE THAN THEY USED TO HAVE PROBLEMS WITH THEM THE BIGGEST COMPLAINT FOR 26 OF ALL RESPONDENTS IS THAT MALLS ARE TOO CROWDED EIGHTEEN PERCENT DISLIKE THE POOR OR CONGESTED PARKING ABOVE ALL ELSE AND 11 SAY THE BIGGEST DISADVANTAGE IS THAT MALLS ARE MORE EXPENSIVE THAN DISCOUNT STORES ON THE OTHER HAND 42 OF RESPONDENTS SAY THAT THE BEST THING ABOUT MALLS IS THE SELECTION OF STORES TWENTYFIVE PERCENT SAY THAT ONESTOP SHOPPING IS THE BIGGEST BENEFIT AND 11 LIKE THE CONVENIENT LOCATION OF THEIR LOCAL MALL WOMEN HAVE ALWAYS BEEN MORE LIKELY THAN MEN TO LEAVE THEIR PARENTS' HOME BECAUSE THEY WERE GETTING MARRIED BUT THAT REASON IS LESS PREVALENT FOR BOTH SEXES THAN IT USED TO BE AMONG YOUNG WOMEN WHO LEFT HOME BETWEEN 1980 AND 1987 33 SAID MARRIAGE WAS THE PRIMARY REASON DOWN FROM 67 BETWEEN 1945 AND 1958 ACCORDING TO BROWN UNIVERSITY SOCIOLOGISTS FRANCES AND CALVIN GOLDSCHEIDER FOR MEN THE SHARE WHO LEFT HOME TO MARRY DROPPED TO 10 FROM 26 OVER THE PERIOD THE MOST RECENT IMMIGRANTS TO THE US TEND TO BE THE HEALTHIEST AMERICANS FINDS A 198990 SURVEY FROM THE DEPARTMENT OF HEALTH AND IT'S NOT JUST BECAUSE THEY ARE YOUNGER THOSE WHO HAVE BEEN IN THE COUNTRY LESS THAN FIVE YEARS ARE MORE LIKELY TO REPORT GOOD OR EXCELLENT HEALTH THAN NATIVEBORN RESIDENTS OR IMMIGRANTS WHO HAVE BEEN IN THE US FIVE YEARS OR LONGER EVEN AFTER ADJUSTING FOR AGE DIFFERENCES RECENT IMMIGRANTS ARE ALSO LEAST LIKELY TO BE LIMITED IN THEIR DAILY LIFE BY A CHRONIC CONDITION AND THEY SPEND THE FEWEST DAYS IN BED BECAUSE OF ILL HEALTH 9404250007 940425 INTERNATIONAL RUSSIAN OIL MAN AND FIRM HE FORMED LUKOIL ARE MAKING MARK ON INDUSTRY BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW VAGIT ALEKPEROV IS WELL ON HIS WAY TO BEING THE KINGPIN OF OIL IN RUSSIA HE'S THE SMARTEST OIL MAN AROUND SAYS THANE GUSTAFSON DIRECTOR OF FORMER SOVIET UNION SERVICES AT CAMBRIDGE ENERGY RESEARCH ASSOCIATES IN WASHINGTON IN THE PAST THREE YEARS MR ALEKPEROV AND THE COMPANY HE PUT TOGETHER LUKOIL HAVE MADE THEIR MARK LAST YEAR LUKOIL PRODUCED NEARLY ONE MILLION BARRELS A DAY OR MORE THAN HALF AS MUCH AS KUWAIT AND REFINED 375000 BARRELS A DAY IT IS RUSSIA'S LARGEST PARTIALLY PRIVATIZED OIL COMPANY IN TERMS OF OIL EXTRACTED AND REFINED AND EMPLOYS 100000 LUKOIL'S FORMATION IN LATE 1991 STARTED A TREND IN RUSSIA TOWARD LARGE VERTICALLY INTEGRATED OIL COMPANIES MR ALEKPEROV BROUGHT TOGETHER THREE BRANCHES OF INDUSTRY EXPLORATION REFINING AND DISTRIBUTION THAT WERE STILL SEPARATE 2 1/2 YEARS AGO UNDER THE REMNANTS OF THE OLD SOVIET SYSTEM WHAT HAD BEEN FIEFDOMS HAD TO BE INTEGRATED INTO AN INDUSTRIAL COMMUNITY MR ALEKPEROV SAYS THE PROCESS TOOK MONTHS OF NEGOTIATION AND CAJOLING LUKOIL INCLUDES THREE OILEXPLORATION COMPANIES TWO REFINERIES EIGHT DISTRIBUTION COMPANIES AND SOME 100 REGIONAL AFFILIATES IT HAS LARGE STAKES IN EIGHT BANKS INCLUDING IMPERIAL BANK ONE OF THE COUNTRY'S LARGEST AND ITS OWN INSURANCE COMPANIES AND INVESTMENT FUNDS THE NEXT STAGE IS THE MOST COMPLEX TO REACH THE SAME SYSTEM AS AMOCO OR CONOCO WITH A SINGLE FINANCIAL CENTER MR ALEKPEROV SAYS TO DO SO LUKOIL IS STUDYING HOW FINANCING WAS CENTRALIZED AT SUCH WORLD LEADERS AS AGIP SPA THE OILEXPLORATION UNIT OF ITALIAN STATEOWNED ENERGY CONCERN ENTE NAZIONALE IDROCARBURI FOR NOW LUKOIL IS DRILLING FOR OIL ONLY IN RUSSIA THE SITES INCLUDE THE KOGALYM FIELD IN THE TYUMEN DISTRICT AND THE KOMI DISTRICT BOTH IN WESTERN SIBERIA AND THE KRASNODAR DISTRICT OF THE NORTH CAUCASUS BUT IT IS PLANNING MAJOR PROJECTS IN THE CASPIAN SEA AND IN UZBEKISTAN WE HAVE NO PLANS TO ENTER THE WORLD MARKET SAYS MR ALEKPEROV LUKOIL WILL BASICALLY BE LOCATED IN RUSSIA AND THE FORMER SOVIET TERRITORY BUT LUKOIL DOES HOPE TO WORK WITH FOREIGN PARTNERS ON PROJECTS ELSEWHERE IN THE WORLD TO LEARN TECHNOLOGY AND MANAGEMENT SKILLS IT IS NEGOTIATING WITH ENI TO JOIN TWO EXPLORATION PROJECTS IN TUNISIA MR ALEKPEROV WORKS AT LUKOIL'S NEW CORPORATE HEADQUARTERS A REFURBISHED BRICK BUILDING IN A PRESTIGIOUS PART OF DOWNTOWN MOSCOW THE OFFICE ITSELF IS LARGE FULLY CARPETED AND FURNISHED IN HEAVY DARKWOOD FURNITURE BUT OTHERWISE SPARELY DECORATED THE 43YEAROLD MR ALEKPEROV SEEMS MORE LIKE AN ENERGY SCIENTIST THAN A BUSINESS MOGUL BROADSHOULDERED WITH BLACK HAIR JUST STARTING TO GO GRAY AND DARKBROWN EYES HE ISN'T COMFORTABLE DURING AN INTERVIEW AND GENERALLY AVOIDS THE PRESS MR ALEKPEROV SAYS THE BUSINESSMANAGEMENT SIDE OF LUKOIL'S OPERATIONS IS ITS WEAKEST POINT MANAGEMENT TRAINING HAS BEEN NEARLY NONEXISTENT AND BUSINESS PLANNING UNDER THE CENTRALLY PLANNED SOVIET ECONOMY DIDN'T TOUCH ON THE KINDS OF QUESTIONS CRUCIAL TO MANAGING A MARKETORIENTED BUSINESS MOST LUKOIL MANAGERS COME FROM A TECHNICAL BACKGROUND HAVING RISEN FROM FIELD ENGINEER THROUGH THE RANKS UNDER THE OLD SOVIET SYSTEM FEW SPEAK ANY FOREIGN LANGUAGES MR ALEKPEROV HIMSELF FOLLOWED THE TYPICAL CAREER PATH ALBEIT A FASTLANE VERSION BORN IN AZERBAIJAN'S CAPITAL BAKU HE GRADUATED FROM THE COUNTRY'S AZIZBEKOV OIL AND CHEMICAL INSTITUTE AFTER WORKING IN OIL FIELDS IN THE CASPIAN SEA HE LEFT FOR TYUMEN IN 1979 HE LED THE DEVELOPMENT OF ONE OF RUSSIA'S MAIN OIL FIELDS AT THE AGE OF 32 AND IN 1990 HE BECAME THE YOUNGESTEVER DEPUTY MINISTER FOR THE OIL AND GAS INDUSTRY THE NEXT YEAR HE FOUNDED LUKOIL STILL HE DOESN'T THINK OF HIMSELF AS AN OUTSTANDING BUSINESSMAN WHEN HE WAS TRAINING IN AZERBAIJAN THERE WAS NO NOTION OF BUSINESS SAYS MR ALEKPEROV SPREADING HIS HANDS AS IF TO ENCOMPASS ALL THE WESTERN BASICS ABSENT FROM HIS EDUCATION LUKOIL IS TRYING TO IMPROVE ITS ABILITY TO COMPETE IN THE MARKET ECONOMY BY SENDING MANAGERS ABROAD FOR TRAINING WE HOPE THEY'LL BE A LOT SMARTER THAN WE ARE MR ALEKPEROV SAYS THEY'LL KNOW THE LANGUAGE THEY'LL KNOW ABOUT MANAGEMENT IN THE WESTERN SENSE LUKOIL BECAME A JOINTSTOCK COMPANY IN APRIL OF LAST YEAR UNDER THE 1992 DECREE ON PRIVATIZATION THE STATE CAN CONTINUE TO HOLD 45 FOR THREE YEARS AFTER THE COMPANY IS FORMED UNTIL 1996 IN LUKOIL'S CASE BUT LUKOIL OFFICIALS HOPE THAT STAKE WILL SHRINK GRADUALLY TO 28 TO 30 DURING THE NEXT TWO YEARS ON MARCH 14 LUKOIL BEGAN THE AUCTIONING OF 85 OF ITS SHARES FOR PRIVATIZATION VOUCHERS UNDER THIS PROCESS WHICH WAS SCHEDULED TO FINISH IN MIDAPRIL RUSSIAN CITIZENS CAN EXCHANGE THEIR PRIVATIZATION VOUCHERS FOR SHARES IN LUKOIL BY BIDDING IN A NATIONWIDE AUCTION LATER THIS YEAR THE COMPANY WILL AUCTION AN ADDITIONAL 15 FOR CASH THROUGH AN INVESTMENT TENDER WHERE RUSSIAN AND FOREIGN INVESTORS WILL COMPETE TO OFFER AN ATTRACTIVE INVESTMENT AND COOPERATION PACKAGE IN EXCHANGE FOR PART OR ALL OF THE STAKE A WESTERN COMPANY IS EXPECTED TO WIN THE TENDER BECAUSE IT WOULD HAVE MORE TO OFFER IN TERMS OF ADVANCED TECHNOLOGY MANAGEMENT METHODS ACCESS TO WESTERN MARKETS AND POSSIBLY FINANCING AN ADDITIONAL 20 WILL EVENTUALLY BE MADE AVAILABLE MAINLY TO RUSSIAN INVESTORS LUKOIL HAS RUN INTO TROUBLE IN ONE OF THE AREAS WHERE IT BROKE NEW GROUND THE COMPANY LOOKED ABROAD FOR HELP REPAIRING WELLS BECOMING ONE OF THE FIRST TO HIRE WESTERNERS ON SUCH JOBS LARGER COMPANIES WOULDN'T DO IT BECAUSE OF THE POLITICAL RISK SAYS LEONID FYEDUN LUKOIL VICE PRESIDENT BUT IN FEBRUARY HOUSTONBASED FRANKENBURG INC SUED LUKOIL FOR ALLEGEDLY BREAKING A REPAIR CONTRACT AND TRANSFERRING THE WORK TO A LUKOIL SUBSIDIARY THAT WAS FOLLOWED BY A GOVERNMENT DECISION TO LIMIT LUKOIL TO EXPORTING ONLY OIL AND OIL PRODUCTS PRODUCED BY ITS OWN COMPANIES AS PART OF A BROAD EFFORT TO REGULATE EXPORTS MORE CLOSELY THE COMPANY HOPES THE RESTRICTION WILL BE ONLY TEMPORARY 9404250006 940425 MARKETING & MEDIA ZIFFDAVIS VENTURE PLANS TRADE PAPER ON DATA HIGHWAY BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ZIFFDAVIS PUBLISHING CO WILL ANNOUNCE A JOINT VENTURE TODAY TO PRODUCE A WEEKLY TRADE NEWSPAPER ON THE SOCALLED INFORMATION SUPERHIGHWAY TO BE CALLED INTERACTIVE WEEK IN ITS OCTOBER DEBUT INTERACTIVE WEEK WILL BE SENT FREE TO ABOUT 60000 SENIOR EXECUTIVES AT COMPANIES IN A RANGE OF INDUSTRIES AFFECTED BY THE EMERGING INTERACTIVE TECHNOLOGIES INCLUDING THE FIELDS OF TELECOMMUNICATIONS CABLE TELEVISION AND COMPUTER SOFTWARE AND HARDWARE AFTER THREE MONTHLY ISSUES THE NEWSPAPER WILL PUBLISH BIWEEKLY BEGINNING IN JANUARY THEN INCREASE TO WEEKLY PUBLICATION IN 1996 CLOSELY HELD ZIFFDAVIS PUBLISHER OF A NUMBER OF TECHNICAL COMPUTER TRADE MAGAZINES WILL BE THE SOLE INVESTOR IN THE PROJECT THE PAPER WILL BE PRODUCED BY A TEAM OF EXECUTIVES WHO RECENTLY LEFT A ZIFF COMPETITOR CMP PUBLICATIONS HEADING THE JOINT VENTURE WILL BE JACK DOLCE 46 YEARS OLD WHO WAS THE FOUNDING PUBLISHER OF CMP'S COMMUNICATIONSWEEK AND SUPERVISED A GROUP OF CMP TITLES JOINING HIM ARE AL PERLMAN 41 WHO WAS FOUNDING PUBLISHER OF CMP'S NETWORK COMPUTING AND BETH HAGGERTY 34 WHO WAS MOST RECENTLY PUBLISHER OF COMMUNICATIONSWEEK AND WILL BE INTERACTIVE WEEK'S PUBLISHER MR DOLCE WHO SAID THE NEWSPAPER PLANS A STAFF OF 33 IN EDITORIAL AND SALES IN ITS FIRST YEAR SAID HE BELIEVES THE NEW PUBLICATION WILL FILL AN UNDERSERVED NICHE ALTHOUGH THERE ARE ALREADY DOZENS OF NEWSLETTERS AND MAGAZINES IN THE COMPUTER AND MULTIMEDIA FIELD MR DOLCE SAID MANY DEAL WITH CONSUMER PRODUCTS LIKE 500 CHANNELS THAT ARE YEARS AWAY OR THEY ONLY FOCUS ON A PARTICULAR INDUSTRY LIKE TELECOMMUNICATIONS WE WANT TO PROVIDE RELEVANT NEWS ANALYSIS AND PERSPECTIVE THAT WILL HELP PEOPLE IN THIS BUSINESS MAKE DECISIONS WHETHER OR NOT THE NEWSPAPER WILL BE ABLE TO FREELY ANALYZE AND CRITICIZE INDUSTRIES IT DEPENDS UPON FOR ADVERTISING REMAINS TO BE SEEN AND THERE ARE OTHER NEW PUBLICATIONS CROWDING INTO THE SAME NICHE ALSO ZIFFDAVIS TRIED A NEWSPAPER IN THE MID1980S A DAILY FOR THE COMPUTER INDUSTRY DELIVERED ELECTRONICALLY BUT KILLED THE PROJECT AFTER SEVERAL MONTHS OF TESTS ALTHOUGH INTERACTIVE WEEK WILL BE PUBLISHED ON PAPER ALONE AT FIRST SAID MR DOLCE IT ALSO WILL APPEAR ON ZIFF'S ONLINE COMPUTER SERVICE NEXT YEAR HE SAID THE NEWSPAPER IS JUST THE FIRST OF A LINE OF PRODUCTS FROM A NEW COMPANY HE HEADS CALLED INTERACTIVE ENTERPRISES 9404250005 940425 REVIEW & OUTLOOK EDITORIAL RICHARD M NIXON RICHARD MILHOUS NIXON WAS ONE OF THE MOST INTRIGUING PUBLIC FIGURES OF OUR ERA OFTEN IN LIFE DEPICTED AS A CARDBOARD VILLAIN IN DEATH HE IS BEING CELEBRATED EVEN BY MANY OF HIS SOMETIME DETRACTORS WHATEVER YOUR VIEW OF HIS HISTORICAL CALAMITY IT TAKES A HARD HEART AND A DEEP GRUDGE NOT TO ADMIRE THE WAY HE CONDUCTED HIMSELF IN ITS WAKE CONSIDERING THE DEPTHS HE REACHED WITH HIS RESIGNATION AS PRESIDENT TWO DECADES AGO THIS AUGUST HE SUCCEEDED REMARKABLY WELL WITH THE REHABILITATION OF HIS PERSON AND HIS REPUTATION THIS WAS UNDERSTANDABLY HIS PREOCCUPATION AND HE PURSUED IT WITH THE INTELLIGENCE AND CALCULATION THAT HAVE ALWAYS BEEN HIS HALLMARKS BUT IT REQUIRED EVEN MORE ADMIRABLE HUMAN QUALITIES PERSEVERANCE PATIENCE AND IN THE END PERSPECTIVE ABOUT BOTH HISTORY AND PERSONALITY IN A SENSE THE JUDGMENT OF RICHARD NIXON TURNS ON THE AGEOLD DEBATE OVER THE EXTENT TO WHICH EVENTS ARE SHAPED BY INDIVIDUAL DECISIONS OF GREAT MEN AS AGAINST IMPERSONAL HISTORICAL FORCES ALMOST BY DEFINITION OF COURSE PRESIDENT NIXON BLUNDERED WITH WATERGATE BUT WITH THE PASSING YEARS PASSIONS HAVE COOLED INDEED MEMORY OF WHAT THE SCANDAL WAS ALL ABOUT TURNS HAZY IN THE END THE PRESIDENT HAD TO RESIGN BECAUSE HE HAD LOST THE TRUST OF THE AMERICAN PEOPLE BUT HIS PRECISE SINS BLUR IN THE SWEEP OF OUR TIMES WATERGATE SEEMS OF A PIECE WITH EVENTS BEFORE AND SINCE FROM THE PERSPECTIVE OF THE COMING CENTURY MR NIXON'S RESIGNATION WILL SEEM SCARCELY DISTINGUISHABLE FROM LYNDON B JOHNSON'S DECISION NOT TO SEEK A SECOND TERM PROBABLY THE START OF THIS TORTURED ERA WILL BE MARKED AT THE ASSASSINATION OF JOHN F KENNEDY ONLY THREE WEEKS AFTER HIS FATEFUL DECISION TO SUPPORT THE COUP THAT LED TO THE KILLING OF NGO DINH DIEM AND BLOCKED ANY EASY EXIT FROM VIETNAM THE PASSIONS OF WATERGATE HAVE ENDURED IN THE LEGACY OF VASTLY INFLATED PREROGATIVES OF THE CONGRESS PRESIDENTS STILL HAVE THE BULLY PULPIT OF COURSE BUT WITH IRANCONTRA SPECIAL PROSECUTORS AND THE LIKE THE CONGRESS WAS ULTIMATELY ABLE TO FRUSTRATE EVEN SO POWERFUL A COMMUNICATOR AS RONALD REAGAN THE CURRENT BALANCE OF POWERS BETWEEN THE BRANCHES IS THAT CONGRESS DEPOSES AND PRESIDENTS TAKE THE BLAME THE ONLY CHECK ON THIS POWER NOW SEEMS TO BE MINIWATERGATES IN THE CONGRESS ITSELF SUCH AS THE DEPOSITION OF JIM WRIGHT OR THE MOST CULPABLE OF THE KEATING FIVE IT DOES NOT MAKE FOR STABILITY IN GOVERNMENT NOWHERE IS THIS LEGACY MORE FELT THAN IN THE FEDERAL DEFICIT JUST AS CONGRESS ABDICATED ITS OWN CONTROL BY INDEXING SOCIAL SECURITY AND OTHERWISE CREATING UNBUDGETED ENTITLEMENTS THE BUDGET CONTROL AND IMPOUNDMENT ACT OF 1974 EVISCERATED EXECUTIVE CONTROL OVER THE BUDGET PRESIDENT NIXON SIGNED THIS ACT HAVING NO CHOICE LESS THAN A MONTH BEFORE HE RESIGNED THIS WAS THE YEAR SPENDING SPUN OUT OF CONTROL THE NIXON ERA LEAVES TWO OTHER LEGACIES THAT LOOKING BACK STRIKE US AS SEMINAL ON AUGUST 15 1971 PRESIDENT NIXON DESTROYED THE BRETTON WOODS MONETARY ORDER A BEDROCK OF THE CENTURY'S GREATEST ERA OF INTERNATIONAL ECONOMIC GROWTH THIS SET THE STAGE FOR THE INFLATION OF THE 1970S INDEED WITHIN FIVE WEEKS THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES DECLARED A VERSION OF ECONOMIC WARFARE THAT DID SO MUCH TO SHAPE THE BALANCE OF THE DECADE AND IN MOSCOW ON MAY 26 1972 PRESIDENT NIXON SIGNED A STRATEGIC ARMS LIMITATION AGREEMENT INTENDED TO CEMENT DETENTE WITH THE SOVIETS IT INCLUDED PROHIBITIONS ON DEFENSE AGAINST BALLISTIC MISSILE ATTACK THAT REMAIN IN PLACE TODAY HARDENED INTO ORTHODOXY BY THE PRESENT ADMINISTRATION AND CONGRESS THESE LIMITATIONS ARE LIKELY TO PRECLUDE A TIMELY DEFENSE AGAINST MISSILES DEVELOPED BY THE ROGUE STATES OF THE 21ST CENTURY AT ONE LEVEL THESE DECISIONS WERE INTENDED TO PRODUCE PEACE AND PROSPERITY AS A BASIS FOR THE 1972 PRESIDENTIAL LANDSLIDE BUT AT ANOTHER LEVEL THEY MAY HAVE BEEN HISTORICALLY UNAVOIDABLE THE BRETTON WOODS SYSTEM WAS ALREADY CREAKING BADLY AND ITS 35 GOLD PRICE MAY HAVE ALREADY BEEN INDEFENSIBLE THE CONGRESS WAS NOT ABOUT TO BUILD A SERIOUS MISSILE DEFENSE AND WITH 1972 TECHNOLOGY PERHAPS SHOULD NOT HAVE YET THEY PROVIDE UNFINISHED BUSINESS AS RICHARD NIXON'S FUNERAL SERVICE IMPENDS ON THE CREDIT SIDE OF THE LEDGER WE JOIN WITH OTHERS IN COUNTING THE OPENING TO CHINA WHILE NO DOUBT THAT WAS INEVITABLE SOONER OR LATER IT IS GOOD THAT IT WAS DONE BY A PRESIDENT WITH MR NIXON'S ANTICOMMUNIST CREDENTIALS IN OUR VIEW MORE IMPORTANT PRESIDENT NIXON MANAGED TO EXTRICATE THE US FROM VIETNAM WITH MINIMUM DAMAGE TO ITS INTERNATIONAL STANDING THE LOCAL OUTCOME IN SOUTHEAST ASIA WAS A DISASTER WITH CONGRESS SLASHING FUNDS FOR THE SUPPORT OF SOUTH VIETNAM JUST AS THE NORTH LAUNCHED TANK ATTACKS THAT HAD NOTHING TO DO WITH OPPRESSED PEASANTS BUT ON A LARGER SCALE MR NIXON'S ACCOMPLISHMENT PRESERVED THE HISTORIC CONTAINMENT POLICY THAT ULTIMATELY SUCCEEDED WITH THE COLLAPSE OF THE BERLIN WALL IN 1989 AND THIS SUCCESS WON AGAINST MASSIVE DOMESTIC OPPOSITION AND MANY HISTORICAL PRESSURES STANDS AS AN INDIVIDUAL ACCOMPLISHMENT MUCH HAS BEEN MADE OF MR NIXON'S PERSONALITY WITH ITS MIXTURE OF ASSERTIVENESS AND SHYNESS OF COURSE HE RESENTED THE KENNEDYS HE HAD MUCH REASON FOR IT SEE EARL MAZO'S ACCOUNT NEARBY SEE RELATED ARTICLE NIXON ON THE AGONY OF A CONSITUTIONAL CRISIS' WSJ APRIL 25 1994 YET LOOKING OVER HIS ERA THE FORCE OF PERSONALITY AND INDIVIDUAL DECISIONS SEEM LESS POWERFUL THAN HISTORICAL FORCES AND ACCIDENTS THIS IS NOT SO MUCH A STATEMENT ABOUT HIM AS ABOUT HISTORY IN GENERAL AND OUR TIMES IN PARTICULAR FOR HE WAS A LARGE FIGURE A SINGULAR PRESENCE IN AMERICAN POLITICS THROUGHOUT HIS ADULT LIFE INDEED WE ARE NOT LIKELY SOON AGAIN TO SEE A FIGURE AS ARRESTING AS RICHARD NIXON 9404250004 940425 CELEBRITY SUFFERER IS PRIZED COMPONENT IN PUBLICITY CAMPAIGN FOR AN ILLNESS BY MICHAEL W MILLEREND WHICH OF THE FOLLOWING WOULD GRAB YOUR ATTENTION MOST AN OPINION SURVEY ABOUT OBSESSIVE COMPULSIVE DISORDER A SCIENTIFIC PAPER ABOUT THE DISEASE OR AN INTERVIEW WITH RADIO HOST HOWARD STERN ABOUT HIS OWN STRUGGLE WITH OCD UPJOHN CO AND SOLVAY SA KNOW THE ANSWER TO THAT ONE THAT IS WHY THE TWO DRUG COMPANIES ARE BUSY HUNTING FOR WHAT HEALTHCARE PUBLICISTS CALL A CELEBRITY SUFFERER UPJOHN RECENTLY LEARNED FIRSTHAND JUST HOW POTENT A CELEBRITY CAN BE IN A DISEASE PUBLICITY BLITZ AS PART OF A PROMOTION TIED TO ITS ANTIANXIETY DRUG XANAX UPJOHN SENT FORMER HOUSTON OILER RUNNING BACK EARL CAMPBELL ON A NATIONAL TOUR TO TALK ABOUT HIS BATTLE WITH PANIC ATTACKS THE RUGGED FOOTBALL STAR DREW A STREAM OF CROWDS AND PRESS COVERAGE AS HE MOVINGLY DESCRIBED RACING TO THE HOSPITAL WITH HEART ATTACKS THAT WERE ALL IN HIS MIND UPJOHN SOLVAY AND THE NONPROFIT OBSESSIVE COMPULSIVE FOUNDATION ARE COMBING THROUGH MAGAZINES AND DATABASES AND DISCREETLY ASKING PSYCHIATRISTS FOR A CELEBRITY SUFFERER OF THEIR OWN THE FOUNDATION'S DIRECTOR JAMES BROATCH BEGAN THE HUNT LAST YEAR WITH A CALL TO CELEBRITY OUTREACH AN AGOURA HILLS CALIF ORGANIZATION THAT FINDS CELEBRITIES FOR CHARITIES FOUNDED FIVE YEARS AGO IT HAS LINED UP GARY COLLINS FOR A SUDDEN INFANT DEATH SYNDROME GOLF TOURNAMENT BURT REYNOLDS FOR THE TEMPOROMANDIBULAR JOINT FOUNDATION JENNIFER O'NEILL FOR A KENTUCKY DERBY DIABETES DANCE AND HUNDREDS OF OTHERS AFTER A FEW WEEKS MR BROATCH RECEIVED A FAX FROM MARK ROBERT WHOSE TITLE IS CELEBRITY ACQUISITION DIRECTOR IT LISTED FIVE TV STARS THE FIRM THOUGHT MIGHT HAVE OCD THERE ARE SOME CELEBRITIES THAT HAVE CERTAIN DISORDERS THEY DON'T LIKE TO TALK ABOUT WE KNOW WHO THOSE PEOPLE ARE GENERALLY MR ROBERT SAYS AS A BACKUP MR ROBERT USUALLY RECOMMENDS AN ACTOR WHO PORTRAYS SOMEONE WITH THE DISEASE FOR OCD HE HAD TWO IDEAS TONY RANDALL KNOWN FOR PLAYING THE FUSSY FELIX UNGER ON THE ODD COUPLE AND LARRY LINVILLE WHO PLAYED SURGEON FRANK BURNS ON MASH HE'S SORT OF AN OBSESSIVE PERSONALITY MR ROBERT EXPLAINS MEANWHILE MR BROATCH HAD SOME CREATIVE IDEAS OF HIS OWN LEAFING THROUGH A VANITY FAIR PROFILE OF DONALD TRUMP HE STUMBLED ON THIS PASSAGE ALTHOUGH TRUMP HAD A PHOBIA ABOUT GERMS AND HATED PHYSICAL CONTACT HE DUTIFULLY SHOOK THE HAND OF EVERY LEADER IN THE ROOM THOSE ARE MAGIC WORDS FOR US SAYS MR BROATCH WHO INSTANTLY STARTED LOOKING FOR AN INTERMEDIARY TO THE REALESTATE TYCOON HE NEVER FOUND ONE MOREOVER A CLOSE ASSOCIATE SAYS MR TRUMP IS MERELY FASTIDIOUS NOT OBSESSIVE OR COMPULSIVE ANOTHER LETTER FROM MR BROATCH WENT TO CALVIN KLEIN IT PROPOSED A TIEIN BETWEEN THE FOUNDATION AND THE POPULAR KLEIN PERFUME OBSESSION MR BROATCH SAYS HE NEVER GOT A REPLY UPJOHN AND SOLVAY HAVE A FEW OTHER INTRIGUING LEADS THERE IS A HOCKEY GOALIE NAMED CLINT MALARCHUK WHO SPEAKS CANDIDLY ABOUT HOW HIS OCD DROVE HIM TO RETRACE HIS CAR ROUTES ENDLESSLY TO MAKE SURE HE HADN'T RUN ANYONE OVER DENVER NUGGETS BASKETBALL GUARD MAHMOUD ABDULRAUF FORMERLY CHRIS JACKSON IS OPEN ABOUT HIS TOURETTE'S DISORDER A RELATED ILLNESS FEATURING TICS GRUNTS AND STRINGS OF OBSCENITIES AND RECENTLY MEMBERS OF THE OCD PUBLICITY TEAM OPENED UP MR STERN'S BESTSELLER PRIVATE PARTS AND READ THE DEDICATION TO JOHN SARNO FOR RIDDING ME OF BACK PAIN AND OBSESSIVECOMPULSIVE DISORDER BUT MR STERN WASN'T EXACTLY THE CELEBRITY THEY HAD IN MIND HE PROBABLY WOULDN'T BE ON OUR LIST UPJOHN PUBLICRELATIONS DIRECTOR PHILIP SHELDON SAYS DELICATELY IT HAS TO BE SOMEONE THE GENERAL PUBLIC CAN INVITE TO THEIR HOUSE 9404250003 940425 MRS JACKIE PRESSER IS PAYING THE PRICE FOR PRICEY PURCHASES TEAMSTER'S WIDOW EXHAUSTED HIS 4 MILLION ESTATE NOW COURT SEEKS ACCOUNT BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL CLEVELAND WHEN JACKIE PRESSER THE HIGHLIVING TEAMSTERS UNION BOSS DIED NEARLY SIX YEARS AGO HE LEFT A 4 MILLION ESTATE TO HIS FIFTH WIFE CYNTHIA AND HIS TWO CHILDREN BY A PREVIOUS MARRIAGE TODAY MRS PRESSER'S JAGUAR SEDAN HAS BEEN REPOSSESSED SHE HAS FILED FOR BANKRUPTCY AND HER BELONGINGS WILL BE SOLD TO PAY HER DEBTS REMOVED AS ESTATE EXECUTOR SHE STANDS ACCUSED OF SQUANDERING HER OWN INHERITANCE AS WELL AS THAT OF HER STEPCHILDREN EARLIER THIS MONTH SHE WAS FOUND GUILTY BY A CUYAHOGA COUNTY PROBATE JUDGE OF MISAPPROPRIATING ESTATE ASSETS TO WHICH SHE WASN'T ENTITLED THE ESTATE OF JACKIE PRESSER LYING IN SHAMBLES IS AN IRONIC EPILOGUE TO HIS FLAMBOYANT LIFE IT'S PEOPLE MAGAZINE MEETS LABOR HISTORY SAYS JAMES NEFF AUTHOR OF MOBBED UP A BIOGRAPHY OF THE TEAMSTERLEADERTURNEDFBI INFORMANT THOUGH MR PRESSER WAS KNOWN FOR SPENDING UNION MONEY LAVISHLY HE WAS A NOTORIOUS CHEAPSKATE WHEN IT CAME TO HIS OWN NICKEL MR NEFF SAYS AT THE TIME OF HIS DEATH IN 1988 AT AGE 61 MR PRESSER HAD BEEN INDICTED ON CHARGES OF RACKETEERING EMBEZZLEMENT AND FILING FALSE UNION REPORTS AS PART OF A PAYROLLPADDING SCHEME INVOLVING TEAMSTERS LOCAL 507 IN CLEVELAND MR PRESSER MAINTAINED HE HAD BEEN AUTHORIZED BY THE FEDERAL BUREAU OF INVESTIGATION TO PAD THE PAYROLL HE DIED OF CANCER BEFORE THE CASE CAME TO TRIAL HIS WILL DIVIDED HIS ESTATE ROUGHLY INTO THIRDS AMONG CYNTHIA HIS WIFE OF TWO YEARS HIS SON GARY 37 AND HIS DAUGHTER BARI 40 HE ALSO DIRECTED THAT 50000 BE GIVEN TO EACH OF CYNTHIA PRESSER'S TWO SONS BY A PREVIOUS MARRIAGE MRS PRESSER 46 SAYS SHE ASKED HER LATE HUSBAND'S LAW FIRM THE TEAMSTERS' GENERAL COUNSEL CLIMACO CLIMACO SEMINATORE LEFKOWITZ & GAROFOLI TO SET UP TRUSTS FOR HER STEPCHILDREN AND SHE ASSUMED THE CLEVELANDBASED FIRM WOULD HANDLE HER ESTATE DUTIES THEN SHE PROCEEDED TO BUY EXPENSIVE HOMES CARS AND CLOTHING FOR HERSELF I WAS TOLD IT WAS MINE TO SPEND SHE SAID IN A RECENT INTERVIEW ACCORDING TO PROBATE AND BANKRUPTCYCOURT RECORDS FILED IN CUYAHOGA COUNTY OHIO MRS PRESSER RAN THROUGH 15 MILLION AFTER MR PRESSER'S DEATH SHE BOUGHT A 629000 LAKEFRONT HOUSE OUTSIDE CLEVELAND AND A COLORADO CONDOMINIUM SHE INVESTED 100000 IN HER HAIRDRESSER'S SALON SPENT TENS OF THOUSANDS OF DOLLARS ON CUSTOMMADE DESIGNER CLOTHING 10000 FOR A DIAMOND ENGAGEMENT RING FOR HER DAUGHTERINLAW AND 25000 FOR HER SON'S WEDDING TO WHICH SHE WORE A 3200 DRESS SHE PUT 50000 DOWN ON A HOUSE IN ARIZONA BUT LOST IT ALL WHEN THE DEAL FELL THROUGH IN NOVEMBER 1991 SHE SPENT 11000 AT SAKS FIFTH AVENUE THOUGH SHE CAN'T REMEMBER ON WHAT SHE DOES REMEMBER BUYING A PAIR OF GOLD EARRINGS FOR 3750 AND A GOLD BRACELET FOR 3000 THE DOCUMENTS SHOW I KNOW THESE LOOK LIKE EXORBITANT EXPENSES BUT MY LIFE WITH MY LATE HUSBAND PROVIDED ME A LIFE LIKE THAT AND I CONTINUED TO LIVE THAT LIFE SHE SAID IN A PROBATECOURT DEPOSITION MRS PRESSER DIDN'T SPEND EVERYTHING ON HERSELF SHE WAS GENEROUS TO HER OWN FAMILY SHE HELPED PAY HER TWO SONS' MEDICAL EXPENSES CREDITCARD BILLS CAR PAYMENTS AND INSURANCE ACCORDING TO COURT DOCUMENTS SHE FREQUENTLY MADE OUT CHECKS OF SEVERAL THOUSAND DOLLARS TO HER EXHUSBAND THOMAS JARABEK WHOM SHE NOW LIVES WITH AND SUPPORTS CHAINSMOKING VIRGINIA SLIMS MRS PRESSER OCCASIONALLY CHOKED UP AS SHE TALKED IN AN INTERVIEW ABOUT HER MARRIED LIFE WITH JACKIE STYLISHLY CLAD IN A CHECKED SKIRT AND SOLID JACKET ACCENTED BY HEAVY GOLD EARRINGS AND BRACELETS MRS PRESSER WORE THE DIAMONDSTUDDED WEDDING BAND JACKIE GAVE HER WHEN THEY ELOPED TO LAS VEGAS TWO YEARS BEFORE HIS DEATH THE PRESSERS MET SOME 20 YEARS BEFORE THEY MARRIED SHE WORKED FOR THE UNION FILING INSURANCE AND PENSION CLAIMS HE WAS A FASCINATING MAN BRILLIANT SHE SAYS OF HER WARM KIND AND INTUITIVE LATE HUSBAND LIVING AND TRAVELING WITH HIM WAS AN EDUCATION IN LIFE BUT JACKIE'S CHILDREN MAINTAIN HIS WIDOW LEFT THEM OUT IN THE FINANCIAL COLD THEY SAY THEY DIDN'T GET ANY MONEY FROM THE ESTATE FOR THREE YEARS AND THEN GOT JUST A FRACTION OF WHAT THEY WERE ENTITLED TO IN AN INTERVIEW GARY PRESSER SAYS HIS SISTER BARI COULDN'T GET ENOUGH CASH OUT OF THE ESTATE TO PAY FOR TOOTH EXTRACTIONS MY FATHER ALWAYS TOLD PEOPLE YOU NEVER HAVE TO WORRY ABOUT MY KIDS' HE WAS VERY TIGHT WITH HIS MONEY LAMENTS GARY WHO SAYS HE RECENTLY TOOK EARLY RETIREMENT AS TEAMSTERS LOCAL 507 VICE PRESIDENT AND NOW IS TRYING TO PUT TOGETHER ENOUGH MONEY TO START HIS OWN BUSINESS CYNTHIA PRESSER DIDN'T CARE A BIT ABOUT HER HUSBAND'S CHILDREN HE MAINTAINS SHE DIDN'T EVEN INVITE THEM TO THE CEREMONIAL STONESETTING AT THEIR FATHER'S GRAVE I HAD TO HEAR ABOUT IT FROM THE RABBI THE WIDOW SAYS SHE WAS OVERWHELMED BY ALL THE DECISIONS SHE HAD TO MAKE ABOUT HER HUSBAND'S MEDICAL CARE BURIAL AND ESTATE AND SHE HAD A HARD TIME COPING SHE ADDS THAT SHE TRIED TO DO RIGHT BY JACKIE'S CHILDREN SHE SAYS SHE BEGGED HER HUSBAND'S LAW FIRM TO SET UP GARY'S AND BARI'S TRUSTS BUT IT WAS THREE YEARS BEFORE ACCOUNTS OF 258000 WERE ESTABLISHED FROM WHICH THE PRESSER CHILDREN EACH RECEIVE ABOUT 850 A MONTH SHE ALSO SAYS THE LAWYERS NOW HER FORMER LAWYERS GAVE HER BAD ADVICE WHICH EXACERBATED HER DIFFICULTIES THERE'S NO BASIS IN FACT OR LAW FOR HER ALLEGATIONS SAYS JOHN CLIMACO OF THE LAW FIRM WE TOLD HER THAT WE WERE ONLY ATTORNEYS FOR THE ESTATE AND NOT REPRESENTING HER PERSONALLY MEANWHILE MRS PRESSER SPENT FREELY JACKIE'S CHILDREN WERE DEMANDING MONEY AND THE CLIMACO LAW FIRM WAS BILLING HER 160000 FOR ESTATE WORK PLUS 466000 SAID TO BE OWED FOR WORK DONE FOR JACKIE AND THE INTERNAL REVENUE SERVICE IMPOSED A 600000 PENALTY ON TOP OF THE 500000 IN TAXES THAT THE ESTATE ALREADY HAD PAID MRS PRESSER SAYS SHE TRIED TO HONOR EVERYTHING I OWED LAST JUNE SHE AGREED TO A SETTLEMENT THAT SHE EXPECTED WOULD CLEAR UP EVERYTHING IT CALLED FOR HER TO PAY GARY AND BARI ANOTHER 175000 EACH AND CLIMACO 200000 WHICH THE LAW FIRM AGREED TO ACCEPT AS FULL PAYMENT OF ITS MORE THAN 600000 BILL BUT THERE WAS ONE PROBLEM MRS PRESSER DIDN'T HAVE ENOUGH CASH LEFT TO HONOR THE ARRANGEMENTS LATE LAST YEAR GARY AND BARI PRESSER'S TRUSTEE BANC ONE AND CLIMACO FILED COMPLAINTS AGAINST HER IN PROBATE COURT SAYING THEY HADN'T RECEIVED THEIR SETTLEMENTS BANC ONE AND CLIMACO ALSO CHARGED HER WITH EMBEZZLING AT LEAST 654057 FROM THE PRESSER ESTATE THE PROBATE COURT UPHELD THE SETTLEMENT BUT REMOVED MRS PRESSER AS EXECUTOR OF THE ESTATE IN JANUARY SHE FILED FOR CHAPTER 11 PROTECTION FROM CREDITORS SHE LISTED LIABILITIES OF 134 MILLION AND ASSETS OF 117 MILLION THE BANKRUPTCY COURT CHANGED HER STATUS TO CHAPTER 7 LIQUIDATION AS THE BULK OF HER ASSETS WAS IN REAL ESTATE AND SUCH PROPERTY AS FOUR FURS INCLUDING A FULLLENGTH BLACK DIAMOND RANCH MINK SEVERAL LAPIS BLACK ONYX CORAL AND PEARL NECKLACES THREE PAIRS OF DIAMOND EARRINGS AND DOZENS OF LLADRO AND LALIQUE KNICKKNACKS LAST WEEK CUYAHOGA COUNTY PROBATE JUDGE JOHN J DONNELLY IN A SUMMARY JUDGMENT FOUND MRS PRESSER GUILTY OF HAVING CONCEALED EMBEZZLED CONVEYED AWAY OR BEEN IN POSSESSION OF ASSETS OF THE PRESSER ESTATE THERE WILL BE A HEARING MAY 2 TO DETERMINE THE AMOUNT SHE CONCEALED MEANWHILE THOUGH SHE MAY LOSE ALMOST EVERYTHING ELSE MRS PRESSER STILL HAS THE 120000 IN PENSION AND ANNUITIES SHE RECEIVES ANNUALLY FROM THE TEAMSTERS AS JACKIE'S WIDOW AND SHE STILL HAS HER MEMORIES NO REGRETS NO MATTER HOW LONG IT LASTED SHE SAID AMID SOBS MY LIFE WITH HIM WAS WORTH IT 9404250002 940425 INTERNATIONAL SINGAPOREANS PERCEIVE INCONSISTENCY IN US FOCUS ON TEENAGER'S CANING BY MARCUS W BRAUCHLI AND G PIERRE GOAD STAFF REPORTERS OF THE WALL STREET JOURNAL SINGAPORE LOST IN THE MEDIA STORM SURROUNDING MICHAEL FAY THE AMERICAN TEENAGER SENTENCED TO SIX LASHES OF THE CANE FOR VANDALISM IS ANOTHER INSTRUCTIVE TALE OF SINGAPOREAN JUSTICE JOHANNES VAN DAMME A 58YEAROLD DUTCH ENGINEER WAS CAUGHT TRIED AND CONVICTED FOR DRUG TRAFFICKING MR VAN DAMME MAINTAINS HE KNEW NOTHING OF THE HEROIN FOUND IN HIS SUITCASE'S LINING ON AN AIRPORT STOPOVER FROM BANGKOK TO ATHENS HE SAID HE WAS PAID TO CARRY THE BAG YET SINGAPORE'S MANDATORY PUNISHMENT FOR DRUG TRAFFICKERS IS DEATH SO MR VAN DAMME LAST YEAR BECAME THE FIRST CAUCASIAN TO BE SENTENCED TO HANG HERE SINCE SINGAPORE GAINED NATIONHOOD IN 1965 HE HAS UNTIL MAY 7 TO APPLY FOR CLEMENCY UNLIKE MR FAY'S CELEBRATED CASE MR VAN DAMME'S FATE HAS DRAWN FEW NEWSPAPER ARTICLES NO SATELLITE TELEVISION COVERAGE AND NARY A MENTION ON THE WORLD'S BOISTEROUS TALKSHOW CIRCUIT NO DOUBT THAT IS PARTLY BECAUSE HIS LAWYER HERE PREFERS QUIET DIPLOMACY AND PARTLY BECAUSE MANY OTHER COUNTRIES ROUTINELY IMPOSE THE DEATH PENALTY WHILE FEW CANE BUT SINGAPOREANS AND FOREIGN RESIDENTS HERE INCREASINGLY SEE A LARGER REASON FOR THE GALE OF ATTENTION TO 18YEAROLD MR FAY MEDIA MYOPIA IT ISN'T THE WEST THAT IS CONCERNED WITH HUMAN RIGHTS OR SINGAPORE'S RIGOROUS APPLICATION OF ITS LAWS IT IS THE US AND ITS MEDIA THAT ARE OBSESSED WITH THE FATE OF ONE AMERICAN IT'S ABSURD THAT SOCIETIES SO STRICKEN WITH CRIME SHOULD ATTEMPT TO APPLY THEIR STANDARDS TO US AND TEACH US WHAT TO DO SAYS SINGAPORE'S HOMEAFFAIRS MINISTER WONG KAN SENG HIS MINISTRY HAS ISSUED REBUTTALS OF ARTICLES IN THE US PRESS SUGGESTING THAT SINGAPORE COERCED A CONFESSION FROM MR FAY WHO PLEADED GUILTY IT'S GONE HYSTERICAL ADDS CHAN HENG CHEE FORMER AMBASSADOR TO THE UNITED NATIONS AND AN INTERNATIONALAFFAIRS SPECIALIST HERE WHAT IS INTERESTING TO SINGAPOREANS IS THAT AT THE PEOPLE LEVEL IN THE UNITED STATES THERE SEEMS TO BE SUPPORT FOR SINGAPORE NEWSPAPERS HERE RUN NEARDAILY ACCOUNTS OF US OPINION POLLS SHOWING LARGE NUMBERS SOMETIMES MAJORITIES SUPPORTING THE CANING OF MR FAY FOR HIS BINGE OF SPRAYPAINTING CARS THEY PLAYED UP LAST WEEK'S CONGRESSIONAL APPROVAL OF A TOUGH CRIME BILL THAT WOULD ADD THE DEATH PENALTY FOR DOZENS OF FEDERAL CRIMES SINGAPOREANS THINK MOST AMERICANS WOULD PREFER TO LIVE AS SINGAPORE DOES YOU CAN GO TO WORK HERE WITHOUT WORRYING YOUR WIFE WILL GET RAPED OR ROBBED SAYS SIM KEE BOON CHAIRMAN OF KEPPEL CORP A SHIPREPAIR AND PROPERTY GROUP IF ONE GOOD THING HAS COME OUT OF THIS IT HAS MADE MANY AMERICANS CONSCIOUS OF THE NEED FOR AN ORDERLY SOCIETY MANY HERE INCLUDING FOREIGNERS FIND THE INDIGNATION OF PRESIDENT CLINTON AND SOME AMERICANS DISINGENUOUS THE 19 BILLION INVESTMENT HERE BY US COMPANIES IS THE LARGEST BY FOREIGNERS AND THE US IS SINGAPORE'S BIGGEST EXPORT MARKET YET UNTIL THE AMERICAN CHAMBER OF COMMERCE PROTESTED MR FAY'S SENTENCE IT NEVER OBJECTED TO THE CANING OF SINGAPOREANS I'VE BEEN HERE FOR 14 YEARS AND THEY'VE BEEN CANING PEOPLE THE WHOLE TIME BUT I'VE NEVER HEARD A PEEP FROM THE US SAYS MARK HABELL AN AMERICAN WHO TEACHES PHYSICAL EDUCATION AT THE SCHOOL MR FAY ATTENDS IN CANING A TRAINED MARTIALARTS EXPERT DELIVERS SKINSPLITTING BLOWS WITH A FLEXIBLE QUARTERINCHTHICK RATTAN BATON AGAINST THE BARE BUTTOCKS IT OFTEN LEAVES PERMANENT SCARS AND IS CONSIDERED BY AMNESTY INTERNATIONAL TO BE CRUEL INHUMAN AND DEGRADING SINGAPORE ADMINISTERS ABOUT 1000 CANINGS A YEAR FOR CRIMES RANGING FROM RAPE TO OVERSTAYING A VISA UNLESS SINGAPORE'S PRESIDENT GRANTS MR FAY CLEMENCY HE PROBABLY WILL RECEIVE SIX STROKES SOMETIME IN THE NEXT MONTH HE'S SERVING A FOURMONTH PRISON SENTENCE YET FOREIGN EXECUTIVES ARE MORE LIKELY TO PRAISE SINGAPORE'S LAWANDORDER EFFORTS THAN CRITICIZE THE REPUBLIC FOR GOING TOO FAR SINGAPORE HAS WON THE ADMIRATION OF THE WORLD FOR ITS DYNAMIC GROWTH AND SOCIAL ORDER JOHN MULLEN CHIEF EXECUTIVE OF TNT EXPRESS WORLDWIDE SAID IN LONDON LAST WEEK IT STANDS AS A ROLE MODEL NOT ONLY FOR OTHER ASIAN COUNTRIES BUT ALSO FOR MANY IN THE WESTERN HEMISPHERE MR FAY'S STEPFATHER WORKS FOR TNT RIVAL FEDERAL EXPRESS CORP IN SINGAPORE BUT FREDERICK W SMITH ITS CHAIRMAN SAYS I DON'T THINK THERE'S ANYTHING TO BE GAINED BY ME COMMENTING PUBLICLY ON THE FAY CASE SOME BUSINESSMEN AND SINGAPOREANS SAY US BULLYING IN THE CASE HAS UNDERMINED MR FAY'S CHANCES OF QUIETLY WINNING CLEMENCY TO GRANT HIM A REPRIEVE NOW INTERNATIONALAFFAIRS SPECIALIST MS CHAN SAYS WOULD OPEN THE FLOODGATES WE'D HAVE TO DO IT FOR EVERYBODY BUSINESS LEADERS ARE THE ONLY FOREIGNERS WITH ANY REAL INFLUENCE IN SINGAPORE THEIR RELUCTANCE TO CRITICIZE AND THE FLOOD OF PRAISE FROM MANY AMERICANS MAKES IT EASY FOR SINGAPOREANS TO BRUSH ASIDE FOREIGN CRITICISM THE GENERAL PUBLIC FEELING FRANKLY IS THAT IT'S MUCH ADO ABOUT NOTHING SAYS CHEONG YIP SENG EDITOR IN CHIEF OF SINGAPORE'S ENGLISH AND MALAYLANGUAGE NEWSPAPERS SINGAPOREANS CAN'T UNDERSTAND WHY THERE IS SUCH A BIG FUSS SINGAPOREANS SAY THEY DON'T LIKE BEING TOLD WHAT TO DO BY AMERICANS THE GENERAL REACTION IS THAT THE LAW SHOULD TAKE ITS COURSE THERE'S A VERY STRONG FEELING REGARDING SOVEREIGNTY MR CHEONG SAYS YOUR CRIMINAL JUSTICE SYSTEM IN THE US HASN'T QUITE INSPIRED US TO FOLLOW YOUR EXAMPLE IT'S TOUGH HERE SAYS EDMOND A PEREIRA THE LAWYER FOR MR VAN DAMME THE CONDEMNED DUTCH ENGINEER BUT WE GREW UP ON THIS WE LEARNED THE LAW 9404250001 940425 WHO'S NEWS CNW DISMISSES 4 IN WAKE OF PROBE INTO ACCOUNTING BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO CHICAGO & NORTH WESTERN HOLDINGS CORP SAID IT FIRED TWO EXECUTIVES IN THE WAKE OF AN INVESTIGATION INTO ACCOUNTING IRREGULARITIES AND ERRORS ALTHOUGH THE RAILROAD HOLDING COMPANY SAID THE EXECUTIVES DIDN'T CAUSE THE ABERRATIONS THEY WERE DISMISSED FOR HOW THEY HANDLED THE AFFAIR AFTER DISCOVERING IT THOMAS A TINGLEFF SENIOR VICE PRESIDENT OF FINANCE AND ACCOUNTING AND R SCOTT MORGAN VICE PRESIDENT AND CONTROLLER WERE DISMISSED THE TWO COULDN'T BE REACHED FOR COMMENT FRIDAY THE COMPANY ALSO FIRED TWO EMPLOYEES IT DIDN'T IDENTIFY CHICAGO & NORTH WESTERN SAID THE MATTER INVOLVES INAPPROPRIATE RECORDING OF SOME OPERATING EXPENSES MOSTLY IN THE 1993 FOURTH QUARTER ALTHOUGH SOME IRREGULARITIES WERE DETECTED AS FAR BACK AS 1991 THE COMPANY DIDN'T ELABORATE ON WHAT WENT WRONG BECAUSE OF THE IRREGULARITIES CHICAGO & NORTH WESTERN SAID THE FIRSTQUARTER RESULTS IT WILL REPORT THIS WEEK WILL INCLUDE AN ACCOUNTING ADJUSTMENT THAT REDUCES NET INCOME BY 800000 OR TWO CENTS A SHARE CHICAGO & NORTH WESTERN SAID IT EXPECTS TO REPORT FIRSTQUARTER NET INCOME OF ABOUT 165 MILLION OR ABOUT 36 CENTS A SHARE COMPARED WITH 146 MILLION OR 33 CENTS A SHARE FOR THE 1993 FIRST QUARTER BASED ON AN INVESTIGATION BY ITS OUTSIDE COUNSEL AND ITS PUBLIC ACCOUNTANTS ARTHUR ANDERSEN & CO THE COMPANY CONCLUDED THAT IT WON'T NEED TO RESTATE ITS PAST FINANCIAL STATEMENTS AND THAT IT DOESN'T HAVE EVIDENCE THAT FUNDS OR ASSETS WERE IMPROPERLY DIVERTED IN THE WAKE OF THE INVESTIGATION CHICAGO & NORTH WESTERN SAID IT IS REORGANIZING ITS OPERATIONS DEPARTMENT ROBERT A JAHNKE SENIOR VICE PRESIDENT OF THAT DEPARTMENT WAS REASSIGNED TO THE SAME POSITION FOR PLANNING JOHN M BUTLER WHO RETIRED AS SENIOR VICE PRESIDENT OF FINANCE AND CHIEF FINANCIAL OFFICER IS RETURNING TEMPORARILY THE COMPANY SAID IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE CHICAGO & NORTH WESTERN ROSE 1125 TO CLOSE AT 24125 A SHARE 9404220214 940422 THRIFT CONVERSIONS WILL BE GOVERNED BY TIGHTER RULES BY ANGELA SHAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE OFFICE OF THRIFT SUPERVISION ISSUED RULES THAT WILL MAKE IT MORE DIFFICULT FOR SAVINGS ASSOCIATIONS TO CONVERT FROM MUTUAL TO STOCK OWNERSHIP THE RULES WILL GIVE LOCAL DEPOSITORS IN THE 567 MUTUAL OR DEPOSITOROWNED ASSOCIATIONS GREATER SAY ABOUT WHETHER THE THRIFTS CONVERT TO OWNERSHIP BY STOCKHOLDERS THE CHANGE IS DESIGNED TO CURB THE LARGE BENEFIT PACKAGES THAT SOME THRIFT MANAGERS WERE GIVING THEMSELVES WHEN THEIR INSTITUTIONS CONVERTED THESE BENEFITS HAVE DRAWN CRITICISM FROM DEPOSITORS REGULATORS AND MEMBERS OF CONGRESS WE WANT TO MAKE SURE CONVERSIONS ARE UNDERTAKEN FOR FIDUCIARY REASONS NOT THE MANAGEMENT'S BENEFIT SAID JERRY COMIZIO DEPUTY CHIEF COUNSEL FOR THE OTS ONE CHANGE WILL REQUIRE MOREDETAILED REPORTS ON AN INSTITUTION'S APPRAISED VALUE OFFICIALS SAID SOME THRIFTS HAVE UNDERSTATED THEIR MARKET VALUE WHICH COULD PRODUCE BIGGER PROFITS FOR THE NEW STOCKHOLDERS THE OTS HAS REJECTED MORE THAN 75 OF RECENT CONVERSION APPLICATIONS BECAUSE THE MARKET VALUE OFFERED WAS DISPUTED AGENCY OFFICIALS SAID THE AGENCY ISSUED THE NEW MEASURE AS AN INTERIM FINAL RULE WHICH WILL TAKE EFFECT TUESDAY THE PUBLIC AND THE INDUSTRY WILL BE GIVEN A CHANCE TO COMMENT BUT THE AGENCY DIDN'T SAY WHETHER THEY WOULD AMEND THE RULES BASED ON THOSE SUGGESTIONS AT THE SAME TIME THE OTS PROPOSED A RULE THAT IF ADOPTED WOULD REQUIRE AN INSTITUTION TO SHOW THAT IT WAS MEETING THE CONVENIENCE AND NEEDS OF ITS COMMUNITY BEFORE IT CAN CONVERT THEY SHOULD BE USING SOME CREATIVITY SUCH AS A COMMUNITY DEVELOPMENT BANK OR SPECIAL RESERVES FOR HOUSING LOANS MR COMIZIO SAID OFFICIALS AT THE SAVINGS AND COMMUNITY BANKERS ASSOCIATION A THRIFT TRADE GROUP SAID THEY WEREN'T CERTAIN EXACTLY HOW THE NEW GUIDELINES WOULD BENEFIT CONSUMERS CLEARLY THE OTS'S RULES MEAN MORE PAPERWORK SAID RANDY MCFARLANE AN ASSOCIATION ATTORNEY MR MCFARLANE ALSO SAID THE ADOPTION OF THE NEW RULES ENDANGERS THOSE INSTITUTIONS CURRENTLY IN THE PROCESS OF SEEKING A CONVERSION BUT CAROLYN LIEBERMAN OTS CHIEF COUNSEL SAID SOME OF THOSE COULD BE GRANTED WAIVERS AND COULD PROCEED USING THE OLD RULES WHICH ARE MORE LENIENT ANOTHER ASPECT OF THE OTS'S COMMUNITY FOCUS IS TO ALLOW ELIGIBLE DEPOSITORS THE FIRST CHANCE AT BUYING CONVERSION STOCK WHO WOULD THEN BE FOLLOWED BY THE INSTITUTION'S EMPLOYEES THIS WAY MOM AND POP CAN GET IN ON THE GROUND FLOOR LIKE WALL STREET INSIDERS MR COMIZIO SAID 9404220212 940422 BUSINESS BRIEF BENETTON SPA ITALIAN FIRM'S 1993 PROFIT ROSE 13 ON STRONG REVENUE ITALIAN LEISURE WEAR MAKER BENETTON SPA SAID CONSOLIDATED 1993 NET INCOME ROSE 13 LARGELY BECAUSE OF STRONG REVENUE GROWTH ABROAD PROFIT ROSE TO 208 BILLION LIRE 1282 MILLION FROM 1847 BILLION LIRE A YEAR EARLIER REVENUE INCREASED 95 TO 2751 TRILLION LIRE FROM 2512 TRILLION LIRE BENETTON NOTED THAT THE STRONGEST SALES GROWTH WAS REGISTERED IN FAR EASTERN COUNTRIES WHERE REVENUE SOARED 83 AT THE SAME TIME REVENUE INCREASED 51 IN THE MIDDLE EAST AND 19 IN THE US AND THE CARIBBEAN REGION OVERALL 70 OF BENETTON'S REVENUE ORIGINATED FROM OVERSEAS OPERATIONS THE COMPANY SAID IT HAD MANAGED TO REDUCE ITS OPERATING COSTS DURING THE YEAR AS A RESULT OF A CONTINUING RESTRUCTURING WHICH INVOLVES THE INTEGRATION OF ITALIAN SUPPLIERS INTO THE BENETTON INDUSTRIAL SYSTEM BENETTON ALSO HIGHLIGHTED TECHNOLOGICAL IMPROVEMENTS IN ITS PRODUCTION PLANTS ANALYSTS SAID THAT THE FIGURES WERE IN LINE WITH EXPECTATIONS 9404220211 940422 MONSANTO NET ROSE 38 IN 1ST QUARTER CHEMICALS REBOUNDED ST LOUIS MONSANTO CO'S FIRSTQUARTER EARNINGS HELPED BY RESURGENT PROFITABILITY AT ITS CHEMICAL SEGMENT CLIMBED 38 ON A 31 SALES INCREASE THE CHEMICAL PHARMACEUTICAL AND FOODADDITIVE CONCERN REPORTED NET OF 194 MILLION OR 163 A SHARE UP FROM 141 MILLION OR 117 A SHARE A YEAR EARLIER THE 1993 PERIOD MOREOVER WAS HELPED BY AN AFTERTAX GAIN OF 22 MILLION OR 18 CENTS A SHARE SALES ROSE TO 2 BILLION FROM 194 BILLION COSTCUTTING MEASURES MONSANTO IMPOSED EARLIER AGAIN PLAYED A BIG ROLE IN HELPING THE LATEST QUARTER'S EARNINGS SALES AT MONSANTO'S IMPORTANT AGRICULTURAL GROUP FUELED BY CONTINUED STRONG DEMAND FOR THE COMPANY'S POPULAR ROUNDUP HERBICIDE AS WELL AS THE FIRST SALES OF ITS RECENTLY INTRODUCED HARNESS PLUS HERBICIDE ROSE 24 TO 635 MILLION THOSE RESULTS ALSO INCLUDED AN UNDISCLOSED AMOUNT OF REVENUE FROM THE SALE OF BOVINE SOMATOTROPIN OR BST THE GENETICALLY ENGINEERED HORMONE DESIGNED TO SPUR MILK PRODUCTION IN COWS MONSANTO BEGAN SELLING THE CONTROVERSIAL PRODUCT IN FEBRUARY THE AGRICULTURAL GROUP'S LATEST RESULTS ALSO INCLUDE SALES FROM ORTHO LAWN AND GARDEN PRODUCTS WHICH MONSANTO DIDN'T OWN IN THE YEAREARLIER PERIOD EXCLUDING A SPECIAL 35 MILLION PRETAX GAIN A YEAR AGO THE AG GROUP'S OPERATING INCOME ROSE 37 TO 206 MILLION AT THE CHEMICAL GROUP OPERATING INCOME JUMPED 70 TO 85 MILLION ON SALES OF 853 MILLION LAST YEAR'S SALES WERE SLIGHTLY HIGHER BUT INCLUDED CONTRIBUTIONS FROM SINCEDIVESTED OPERATIONS THE COMPANY'S SEARLE PHARMACEUTICAL BUSINESS RANG UP 12 MILLION IN OPERATING PROFIT AN IMPROVEMENT FROM THE 27 MILLION OPERATING LOSS A YEAR EARLIER SALES ROSE 53 TO 380 MILLION SALES AND OPERATING PROFIT SLIPPED AT THE COMPANY'S NUTRASWEET BUSINESS MONSANTO CITED LOWER PRICES AND THE TIMING OF CERTAIN SHIPMENTS TO MAJOR CUSTOMERS 9404220210 940422 ALLIEDSIGNAL POSTS FIRSTPERIOD PROFIT AGAINST LOSS IN 93 BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL ALLIEDSIGNAL INC REPORTED FIRSTQUARTER NET INCOME OF 169 MILLION OR 51 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS THE IMPROVEMENT REFLECTED DOUBLEDIGIT EARNINGS GROWTH IN ALL MAJOR BUSINESSES IN THE COMPARABLE 1993 QUARTER THE COMPANY HAD A LOSS OF 99 MILLION OR 35 CENTS A SHARE RESULTING FROM AN ACCOUNTING CHANGE BEFORE THE ACCOUNTING CHANGE EARNINGS WERE 146 MILLION OR 51 CENTS A SHARE SALES ROSE 3 TO 3 BILLION FROM 29 BILLION LAWRENCE A BOSSIDY CHAIRMAN AND CHIEF EXECUTIVE OFFICER CALLED THE FIRST QUARTER ENCOURAGING AND SAID IT BODES WELL FOR REACHING OUR GOALS OF 4 TO 6 REVENUE GROWTH AND 13 TO 17 EARNINGS GROWTH FOR THE YEAR IN 1993 EARNINGS BEFORE ACCOUNTING CHANGES WERE 656 MILLION OR 231 A SHARE ON SALES OF 1183 BILLION THE COMPANY BASED IN MORRIS TOWNSHIP NJ MAKES AUTOMOTIVE AND AEROSPACE PRODUCTS AND ENGINEERED MATERIALS MR BOSSIDY SAID HE DOESN'T EXPECT THE RECENT RISE IN INTEREST RATES TO SLOW THE FIRST QUARTER'S MOMENTUM WHICH HE CALLED THE STRONGEST SINCE HE TOOK OVER IN MID1991 AND INSTITUTED A COMPANYWIDE RESTRUCTURING PLAN TO CUT COSTS I DON'T THINK RISING INTEREST RATES HAVE HURT BUSINESSES SUBSTANTIALLY SO FAR HE SAID IN AN INTERVIEW ADDING THAT THE SITUATION COULD CHANGE NEXT YEAR HE SAID ONE OF THE CONCERNS HE HAD WAS THAT IF A HEALTHCARE BILL RESULTS IN HIGHER COSTS FOR EMPLOYERS IT WOULD BE A DRAG ON THE ECONOMY MEANWHILE HE SAID THE COMPANY IS ENCOURAGED BY THE LEVEL OF ITS NEW ORDERS IN THE FIRST QUARTER ESPECIALLY IN AUTOMOTIVE AND AEROSPACE HE SAID THE COMPANY EXPECTS TO INCREASE ITS MARKET SHARE IN THE AUTOMOTIVE SEGMENT WITH PARTS IT WILL BE SUPPLYING FOR THE 1995MODEL VEHICLES THE OVERALL DEMAND FROM THE AUTO INDUSTRY IS ALSO STRONGER THAN EXPECTED HE SAID ALLIEDSIGNAL HAD STARTED THE YEAR PROJECTING A NORTH AMERICAN VEHICLE PRODUCTION OF 14 MILLION CARS AND TRUCKS FOR 1994 THAT'S LOWER THAN DETROIT'S CURRENT ESTIMATE OF 15 MILLION UNITS AND IT'S STILL A CONSERVATIVE ESTIMATE BY THE AUTO COMPANIES HE SAID MR BOSSIDY SAID THE COMPANY'S IMPROVED RESULTS REFLECT A 6 GROWTH IN PRODUCTIVITY TWOTHIRDS OF WHICH CAME FROM COST REDUCTIONS AND THE REST FROM SALES GROWTH WE ULTIMATELY WANT THE GROWTH TO BE HALF AND HALF HE SAID ALLIEDSIGNAL'S AUTOMOTIVE PROFIT ROSE 17 TO 48 MILLION FROM A YEAR BEFORE AND THAT OF ENGINEERED MATERIALS INCREASED 15 TO 77 MILLION THE AEROSPACE UNIT POSTED AN 11 INCREASE IN PROFIT TO 52 MILLION LARGELY DRIVEN BY COST REDUCTIONS MR BOSSIDY SAID THAT A CONTINUING WEAKNESS IN THE AIRLINE INDUSTRY HURT THIS SEGMENT OF THE BUSINESS IN THE FIRST QUARTER AND THAT HE EXPECTS IT TO GET SOMEWHAT STRONGER NEXT YEAR ALLIEDSIGNAL INC EARNED 169 MILLION OR 60 CENTS A SHARE IN THE FIRST QUARTER AN ARTICLE FRIDAY MISSTATED THE PERSHARE FIGURE AS 51 CENTS 9404220209 940422 TECHNOLOGY INTEL CNN TO TEST BRINGING TELEVISION TO COMPUTERS WITHOUT SPECIAL WIRING BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL HILLSBORO ORE INTEL CORP IS TEAMING UP WITH CABLE NEWS NETWORK TO TEST A NEW TECHNOLOGY FOR BRINGING TELEVISION TO NETWORKS OF PERSONAL COMPUTERS THE SEMICONDUCTOR MAKER AND CNN INC A UNIT OF TURNER BROADCASTING SYSTEM INC HAVE ENLISTED SEVERAL COMPANIES TO TRY OUT A SYSTEM THAT ALLOWS PC USERS TO VIEW NEWS BROADCASTS IN A SMALL WINDOW ON THEIR MONITORS THE SAME SYSTEM ALSO CAN BE USED TO DISTRIBUTE VIDEO ANNOUNCEMENTS OR TRAINING MATERIAL TO WORKERS THOUGH MULTIMEDIA TESTS ARE BECOMING COMMONPLACE THE INTEL TECHNOLOGY IS CONSIDERED SIGNIFICANT BECAUSE IT USES ORDINARY LOCAL AREA NETWORKS RATHER THAN SPECIALIZED WIRING OR NEW SWITCHING DEVICES IT HAS BEEN WIDELY ASSUMED THAT COMPUTERIZED VIDEO WOULD CLOG COMPANIES' INFORMATION PIPELINES NOTED SARAH DICKINSON AN ANALYST AT PERSONAL TECHNOLOGY RESEARCH A RESEARCH FIRM IN WALTHAM MASS THE VIDEO IMAGES ON INTEL'S LAN TV ARE RELATIVELY SMALL AND JERKY COMPARED WITH OTHER TECHNOLOGIES SOME OF WHICH OFFER THE ABILITY TO SWITCH TO ANY TV CHANNEL BUT THOSE SYSTEMS TYPICALLY REQUIRE COSTLY CIRCUIT BOARDS WHILE THE INTEL APPROACH RELIES ONLY ON SOFTWARE ANALYSTS SAID THE BIGGEST SELLING POINT MAY BE THE ABILITY TO RECORD CNN PROGRAMS ON USERS' COMPUTER HARD DISKS AND PULL UP NEWS CLIPS LATER BY SUBJECT HEADING A SOFTWARE TECHNOLOGY STILL BEING REFINED BY THE TWO COMPANIES INSTEAD OF TV BEING SOMETHING THAT HAPPENS TO YOU IT CAN BE SOMETHING YOU CONTROL SAID STEVEN MCGEADY VICE PRESIDENT OF INTEL'S MEDIA DELIVERY LAB LOCATED IN THIS PORTLAND SUBURB THE TESTS BEGINNING NEXT MONTH ARE NEEDED TO SEE WHAT INFORMATION BUSINESS PEOPLE WANT THEIR REACTION TO ADVERTISING AND HOW MUCH THEY MIGHT PAY FOR THE SERVICE SAID JON PETROVICH AN EXECUTIVE VICE PRESIDENT AT ATLANTABASED CNN IF THE RESULTS ARE FAVORABLE THE COMPANIES MAY BEGIN SELLING THE SOFTWARE AND SERVICE LATER THIS YEAR MR MCGEADY SAID INTEL BASED IN SANTA CLARA CALIF WANTS PCS TO BECOME BETTER COMMUNICATORS IN ORDER TO BOOST DEMAND FOR THE INTEL MICROCHIPS THAT POWER THEM WHILE THE HOME MARKET FOR INTERACTIVE TV MAY PAY OFF EVENTUALLY THE COMPANY ESTIMATES THAT 29 MILLION NETWORKED PCS ALREADY COULD MAKE USE OF THE NEW TECHNOLOGY LAN TV REQUIRES A PC WITH A 486 MICROPROCESSOR CHIP OR BETTER SOUND CAPABILITY CONNECTIONS TO STANDARD ETHERNET NETWORKS AND SOFTWARE FOR DECOMPRESSING COMPUTERIZED VIDEO THE IMAGES FROM CABLE TV A SATELLITE DISH OR A VIDEO CASSETTE RECORDER ARE DISPENSED BY A SPECIAL GATEWAY COMPUTER THAT SQUEEZES VIDEO FROM 30 STILL PICTURES PER SECOND DOWN TO 10 TO 15 FRAMES AT THAT RATE THEY CONSUME ONLY 3 OF A NETWORK'S CAPACITY THE COMPANY ESTIMATES THE GATEWAY COMPUTER ALSO IS DESIGNED TO LET COMPANIES OR CNN MEASURE HOW FREQUENTLY PC USERS TUNE IN AND WHAT THEY TEND TO WATCH I THINK WHAT THEY'VE DONE IS CLOSE TO A TECHNICAL TOUR DE FORCE SAID BILL CAFFERY A VICE PRESIDENT AT GARTNER GROUP A MARKETRESEARCH FIRM IN STAMFORD CONN THE TECHNOLOGY RELIES ON AN INTEL COMPRESSION TECHNOLOGY CALLED INDEO WALTER MIAO AN ANALYST WITH LINK RESOURCES CORP SAID THE COMPANY MAY EVENTUALLY NEED TO MOVE TO A RIVAL STANDARD CALLED MPEG THAT IS GAINING WIDE INDUSTRY SUPPORT ANALYSTS SAID THE MOST LIKELY CUSTOMERS INCLUDE STOCK TRADERS AND FINANCIAL SERVICES FIRMS BUT SOME COMPANIES ARE ALREADY TARGETING THAT MARKET WITH VIDEO SERVICES INCLUDING REUTERS HOLDINGS PLC AND DOW JONES & CO PUBLISHER OF THIS NEWSPAPER INTEL IS BELIEVED TO BE TALKING WITH SOME OF THEM ABOUT PARTNERSHIPS SEPARATELY INTEL PICKED CHANDLER ARIZ AS THE SITE FOR A 13 BILLION FACTORY THAT IS EXPECTED TO BEGIN PRODUCING MICROPROCESSOR CHIPS IN 1997 THE 15 MILLIONSQUAREFOOT PLANT WILL EMPLOY 2000 NEW INTEL WORKERS AN INTEL SPOKESMAN SAID CHANDLER WAS SELECTED BECAUSE THE COMPANY ALREADY HAS MANUFACTURING THERE WHILE OTHER INTEL SITES ALREADY ARE BEING EXPANDED INTEL ALSO ANNOUNCED THAT TWO SENIOR EXECUTIVES ARE TRADING JOBS TO BROADEN THEIR MANAGEMENT EXPERIENCE THEY ARE PAUL OTELLINI A SENIOR VICE PRESIDENT WHO HAS RUN INTEL'S MICROPROCESSOR GROUP SINCE 1991 AND G CARL EVERETT WHO HAS BEEN DIRECTOR OF SALES SINCE 1990 AND WILL BE PROMOTED FROM VICE PRESIDENT TO PRESIDENT BOTH MEN ARE 43 YEARS OLD 9404220208 940422 PRIVATIZATION IS RUSSIAN'S PUBLIC OBSESSION CHUBAIS LAST OF THE REFORMERS BATTLES STATE INDUSTRIES BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW PICTURE THE YOUNG CLEANSHAVEN ANATOLY CHUBAIS HEAD OF THE RUSSIAN STATE PRIVATIZATION COMMITTEE AS SISYPHUS PUSHING THE STONE OF REFORM UP AN IMPOSING HILL STRUGGLING AGAINST A PANTHEON OF POWERFUL ENEMIES AND THE WEIGHT OF RUSSIAN HISTORY ONE AFTER ANOTHER HIS ALLIES IN THE GOVERNMENT FROM TOPRANKING MINISTERS TO ECONOMIC ADVISERS HAVE FALLEN ON THEIR SWORDS IN THE FACE OF THE CONSERVATIVE RESURGENCE SINCE RUSSIA'S DECEMBER ELECTION SURPRISE BUT MR CHUBAIS IS STILL UP THERE PUSHING WITHOUT ANY INTENTION OF LETTING HIS STONE GET AWAY FROM HIM OF ALL THE REFORMS LAUNCHED BY FORMER ECONOMICS MINISTER YEGOR GAIDAR IN 1992 PRIVATIZATION IS PROBABLY THE MOST SUCCESSFUL MOST PROGRAM TARGETS ARE BEING MET AND PROPERTY IS STEADILY CHANGING HANDS ONE REASON IS MR CHUBAIS'S SINGLEMINDED DEVOTION TO HIS PURPOSE HIS ONLY GOAL IS TO COMPLETE THE PRIVATIZATION PROGRAM AND TO THAT END HE HAS SKILLFULLY AVOIDED BEING SWEPT UP IN THE POLITICAL UPHEAVALS THAT REPEATEDLY RACK RUSSIA IT'S DIFFICULT FOR ME TO EVALUATE MYSELF AS RADICAL OR NOT BUT IT'S CLEAR TO ME WHAT I MUST DO AND HOW I WILL DO IT SAYS THE STRAWBERRYBLOND 38 YEAR OLD AND I'M SURE I WON'T LEAVE UNTIL I HAVE EVERY CHANCE TO FULFILL MY PROGRAM BETWEEN THE START OF PRIVATIZATION IN DECEMBER 1992 AND THE END OF FEBRUARY THIS YEAR ALMOST 15000 LARGE AND MEDIUMSIZED ENTERPRISES OR 64 OF THE TOTAL ELIGIBLE AND SOME 95000 SMALL FIRMS 70 OF THE TOTAL HAD BEEN PRIVATIZED THE REDISTRIBUTION OF WEALTH EVEN THE STATE'S WEALTH ISN'T UNIVERSALLY POPULAR IN RUSSIA DIRECTORS OF LARGE STATE FACTORIES ONLY SLOWLY CAME AROUND TO THE VIEW THAT THEY TOO COULD GAIN FROM PRIVATIZATION POLITICAL CONSERVATIVES OPPOSED THE PROGRAM ON IDEOLOGICAL GROUNDS EVEN REFORMMINDED OFFICIALS DISLIKED CERTAIN ASPECTS THE LARGESCALE PRIVATIZATION PROGRAM HAS BEEN UNDER WAY FOR WELL OVER A YEAR BUT IT WAS ONLY IN FEBRUARY THAT MR CHUBAIS FELT HE'D WON A CRUCIAL VOTE OF CONFIDENCE FROM PRESIDENT BORIS YELTSIN WHO GAVE A MAJOR SPEECH ON THE FUTURE OF REFORMS AND FROM PRIME MINISTER VIKTOR CHERNOMYRDIN THE RUSSIAN PREMIER WARNED A MEETING OF GOVERNMENT LEADERS THAT HE WOULD NO LONGER TOLERATE ATTEMPTS TO DERAIL OR CHANGE THE PROGRAM ALL THE WHILE POINTEDLY STARING AT MOSCOW MAYOR YURI LUZHKOV WHO HAD DEMANDED SPECIAL DISPENSATIONS FOR HIS CITY FOR ME AND MY COLLEAGUES IT WAS THE FINAL DECISION AFTER A VERY EXPRESSIVE DISCUSSION BETWEEN MY MINISTRY AND OPPONENTS WHO DEMANDED AN IMMEDIATE CHANGE IN THE CONCEPT OF THE PROGRAM MR CHUBAIS SAYS IN AN INTERVIEW AT HIS OLD BROWNBRICK HEADQUARTERS NEAR SOME OF MOSCOW'S LOVELIEST HISTORIC CHURCHES MR CHUBAIS SETS THE TONE FOR THE SEVERAL HUNDRED MEMBERS OF HIS STAFF WHO CAN OFTEN BE FOUND THERE WORKING LATE TWOTHIRDS OF THE WAY THROUGH AN INTERVIEW HE CHECKS HIS WATCH AND ANNOUNCES BRISKLY THAT JUST 15 MINUTES REMAIN IN THE EARLY 1980S MR CHUBAIS PUT DOWN HIS ROOTS IN ECONOMICS THAT FOR RUSSIA ARE RADICAL AS PART OF AN INFORMAL TEAM OF YOUNG ECONOMISTS HE STUDIED REFORMS THEN UNDER WAY IN HUNGARY AND POLAND AS WELL AS ELEMENTS OF THE 1920S SOVIET NEW ECONOMIC POLICY AS THE GROUP WASN'T SANCTIONED IT HAD TO OPERATE DISCREETLY MR CHUBAIS RECALLS THAT MUCH OF ITS WORK MEANT READING FORBIDDEN FOREIGN LITERATURE AND RAISING QUESTIONS THAT WERE TABOO SUDDENLY THE ST PETERSBURG CLUB DISCOVERED THAT A SIMILAR GROUP HAD EMERGED IN MOSCOW HEADED BY MR GAIDAR WHO LATER BECAME THE ARCHITECT OF RUSSIA'S ECONOMICREFORM PROGRAM BEGUN IN 1992 THE TWO GROUPS COOPERATED IT WAS STEP BY STEP RECALLS MR CHUBAIS FINALLY WE GOT A CHANCE TO IMPLEMENT SOMETHING BY JOINING THE GOVERNMENT HIS FIRST DIP INTO POLITICS CAME AS DEPUTY MAYOR OF ECONOMIC REFORM IN ST PETERSBURG IN THE LATE 1980S AND AS HEAD OF THE COUNTRY'S FIRST PRIVATIZATION COMMITTEE IN 1989 BUT POLITICS SEEMS TO RUN IN AND DIVIDE THE CHUBAIS FAMILY IN 1990 MR CHUBAIS'S OLDER BROTHER IGOR A WELLKNOWN RADICAL WITHIN THE SOVIET COMMUNIST PARTY ALIGNED HIMSELF WITH REFORMERS WHO WANTED TO SPLIT OFF INTO THEIR OWN PROGRESSIVE COMMUNIST GROUP IGOR CHUBAIS HAS CRITICIZED ANATOLY'S CONCEPT OF PRIVATIZATION AS UNFAIRLY DIVIDING STATE PROPERTY THE VERY CONCEPT OF THE CHUBAIS PRIVATIZATION PROGRAM WAS BOUND TO RAISE HACKLES THE PLAN WAS TO FAIRLY DISTRIBUTE STATE PROPERTY TO PRIVATE OWNERS AMONG ALL SECTORS OF SOCIETY AND TO GIVE EACH INDIVIDUAL A WIDE CHOICE OF HOW TO USE HIS PROPERTY BUT FROM ALL SIDES CAME COMPLAINTS THAT THE PROGRAM WASN'T FAIR MR CHUBAIS ALLOWS HIMSELF A SMALL SMILE AS HE POINTS OUT THAT SUCH CRITICISM FROM ALL SIDES JUST MEANS HIS PROGRAM IS WELLBALANCED MANY FACTORY DIRECTORS NOW SUPPORT THE PRIVATIZATION PROGRAM PARTLY BECAUSE IT HAS GIVEN THEM FAVORABLE ACCESS TO SHARES BUT THIS SUPPORTS RECENT CRITICISM THAT THE PROGRAM IS RIFE WITH CORRUPTION SEVERAL DIRECTORS HAVE BEEN CHARGED WITH MISUSING GOVERNMENT SUBSIDIES TO BUY UP VOUCHERS AND BECOME MAJOR SHAREHOLDERS IN THEIR OWN COMPANY UNLIKE MANY BUREAUCRATS WHO SQUIRM AND EVADE UNPLEASANT QUESTIONS MR CHUBAIS OPENLY ACKNOWLEDGES THAT CORRUPTION IS A BIG PROBLEM IN HIS LINE OF WORK BUT HE CONTRASTS IT WITH THE WHOLESALE ROBBERY AT STATE FACTORIES AND FARMS UNDER THE OLD SYSTEM WHEN WORKERS SIPHONED OFF COMPANY MATERIALS AND PRODUCTS CRITICAL CONSERVATIVES AND NEONATIONALISTS IN THE PARLIAMENT RARELY ACCUSE MR CHUBAIS OF PERSONAL CORRUPTION AND SUPPORTERS DESCRIBE HIM AS SQUEAKY CLEAN BUT RIGHTEOUSNESS CAN RANKLE LAST MONTH AT A MEETING WITH RUSSIAN REGIONAL GOVERNORS AND AGRICULTURAL BOSSES IN NIZHNY NOVGOROD MR CHUBAIS EXPLAINED HE THINKS DIRECTORS OF STATE AND COOPERATIVE FARMS RESIST PRIVATIZATION OF FARMLAND BECAUSE THEN THERE WILL BE NOTHING FOR THEM TO STEAL FROM A STUNNED SILENCE WAS QUICKLY FOLLOWED BY AN EXPLOSION OF BOOS THE CURRENT PROGRAM INCLUDING EXCHANGING SHARES FOR VOUCHERS THROUGH AUCTIONS IS SCHEDULED TO END JUNE 30 BUT MANY OFFICIALS AND OBSERVERS EXPECT MR CHUBAIS WILL STAY ON HELPING TO FORGE THE NEXT STAGE IN WHICH COMPANIES RESTRUCTURE AND ATTRACT INVESTMENT IF SO HIS FIGHT IS FAR FROM OVER SEVERAL INDUSTRIES AND MANY LARGE COMPANIES HAVE AVOIDED PRIVATIZING THE REQUIREMENT THAT DEFENSERELATED ENTERPRISES ALSO PRIVATIZE WAS JUST SETTLED IN DECEMBER FOR EXAMPLE AND ONLY COVERS 75 OF SUCH COMPANIES STILL MR CHUBAIS SEES HOPE IN THE GRUELING EVOLUTION THAT HAS BROUGHT THE PROGRAM THIS FAR A YEAR AND A HALF AGO THIS DECISION WOULD HAVE BEEN REGARDED AS HIGH TREASON A YEAR AGO THE DECISION WOULD HAVE BEEN IMPOSSIBLE ONEHALF YEAR AGO IT BECAME CLEAR THAT PROBABLY WE WOULD PRIVATIZE SOME SUCH COMPANIES AND JUST THREE MONTHS AGO WE DECIDED TO PRIVATIZE 75 OF THEM SAYS MR CHUBAIS NOW I THINK THAT IN THE NEXT SIX MONTHS WE'LL DECIDE TO PRIVATIZE THE REMAINDER THAT KIND OF OPTIMISM WILL BE ESSENTIAL TO PUSHING THROUGH CHANGE MORE RAPIDLY IN THE NEXT FEW MONTHS FOR THE ONLY WAY FOR HIM TO BEAT THE SISYPHEAN CURSE IS TO SO INSTITUTIONALIZE PRIVATE PROPERTY THAT THE STONE OF REFORM WILL NEVER ROLL BACK 9404220205 940422 SEN JOHNSTON'S CHINA ADVOCACY RAISES EYEBROWS LOUISIANA DEMOCRAT LOBBIES COLLEAGUES FOR BEIJING SOME LOOK AT SONS' ROLE BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CHINA HAS FOUND A POWERFUL DEMOCRAT SEN BENNETT JOHNSTON TO SPEARHEAD ITS EFFORT TO WEAKEN US TIES TO TAIWAN AND TIBET THE LOUISIANA DEMOCRAT HAS CIRCULATED A DEAR COLLEAGUE LETTER AMONG MEMBERS OF THE SENATE FOREIGN RELATIONS COMMITTEE OFFERING TO SET UP INDIVIDUAL MEETINGS BETWEEN THE PANEL'S MEMBERS AND CHINA'S AMBASSADOR LI DAOYU THE LETTER WAS UNUSUAL BECAUSE SEN JOHNSTON WHO IS CHAIRMAN OF THE SENATE'S ENERGY AND NATURAL RESOURCES COMMITTEE ISN'T A MEMBER OF THE FOREIGN AFFAIRS PANEL IT ALSO IS UNCOMMON FOR A US SENATOR TO TRY TO ARRANGE MEETINGS FOR A FOREIGN AMBASSADOR SEN JOHNSTON WAS RECENTLY CRITICIZED FOR HIS BOOSTERISM ON BEHALF OF THE CHINESE BY LOUISIANA REPUBLICANS CLAIMING A CONFLICT OF INTEREST BECAUSE THE SENATOR'S TWO SONS BENNETT JOHNSTON III AND N HUNTER JOHNSTON HAVE WORKED FOR COMPANIES SEEKING BUSINESS DEALS WITH CHINA SIMILAR COMPLAINTS FROM REPUBLICANS LAST YEAR LED TO AN APOLOGY FROM SEN JOHNSTON IN A BATON ROUGE NEWSPAPER JIM OWENS EXECUTIVE DIRECTOR OF LOUISIANA'S REPUBLICAN PARTY SAID THE DEAR COLLEAGUE LETTER WILL GIVE THE SENATOR MORE TROUBLE PEOPLE IN LOUISIANA WOULD RATHER HAVE SEN JOHNSTON TO BE SELLING THEIR STATE AND NOT SELLING CHINA MR OWENS SAID THIS WHOLE AFFAIR MAKES IT APPEAR AS THOUGH SEN JOHNSTON IS SELLING HIMSELF A SPOKESMAN FOR SEN JOHNSTON SAID THE SENATOR DIDN'T REGARD THE LETTER AS UNUSUAL AND THAT HIS ACTIVITIES REFLECT A LONGSTANDING INTEREST IN CHINA THAT HAS NOTHING TO DO WITH HIS SONS' BUSINESS DEALINGS HE HAS BEEN AN ARDENT SUPPORTER OF CHINA STARTING WITH HIS FIRST TRIP THERE IN THE LATE 1970S THE SPOKESMAN SAID HE ADDED THAT THE SENATOR BELIEVES USCHINA TRADE REPRESENTS THE WAVE OF THE FUTURE AND THAT POLITICAL DISPUTES CAN BE ADDRESSED BY THE FREE MARKET N HUNTER JOHNSTON WORKS FOR THE WASHINGTON OFFICE OF A NEW ORLEANS LAW FIRM WHERE HE HAS REPRESENTED GENERAL ATOMICS CORP WHICH IS TRYING TO CHANGE US REGULATIONS TO PERMIT A NUCLEAR REACTOR SALE TO CHINA BENNETT JOHNSTON III WORKS FOR A CALIFORNIA COMPANY THAT HAS BEEN TRYING TO SELL ELECTRIC CARS TO CHINA AS WELL AS OTHER NATIONS IF THEY'RE SAYING HE'S DOING THIS BECAUSE HIS SONS ARE IN BUSINESS WITH CHINA THE PREMISE IS WRONG ASSERTED N HUNTER JOHNSTON HE SAID HE HAS RECENTLY STOPPED REPRESENTING GENERAL ATOMICS AND THAT HIS BROTHER ISN'T INVOLVED IN ANY SPECIFIC EFFORT ON BEHALF OF HIS COMPANY TO SELL ELECTRIC CARS TO CHINA IN HIS LETTER TO MEMBERS OF THE FOREIGN RELATIONS COMMITTEE SEN JOHNSTON SAID THAT CHINA'S AMBASSADOR IS CONCERNED ABOUT LANGUAGE PREVIOUSLY PASSED BY CONGRESS DESCRIBING TIBET AS AN OCCUPIED SOVEREIGN COUNTRY THE SENATOR SAID THE AMBASSADOR BELIEVES THE LANGUAGE BLATANTLY VIOLATES CHINESE SOVEREIGNTY AND NATIONAL UNITY THE LETTER SAID THAT AMBASSADOR LI WAS ALSO IRRITATED BY WORDING THAT CLARIFIES A PREVIOUS US COMMITMENT TO PROVIDE ARMS TO MAINTAIN TAIWAN'S DEFENSE CAPABILITIES THE LANGUAGE IS ONE OF THREE SECTIONS OF THE BILL THAT CHINA'S AMBASSADOR REGARDS AS GROSS INTERFERENCE IN CHINA'S INTERNAL AFFAIRS SEN JOHNSTON SAID IN THE LETTER SEN JOHNSTON'S RECOMMENDED CHANGES FOR LANGUAGE IN THE STATE DEPARTMENT'S ANNUAL AUTHORIZATION BILL WERE IGNORED BY A SENATEHOUSE CONFERENCE COMMITTEE THIS WEEK THE BILL IS SCHEDULED FOR FINAL FLOOR APPROVAL NEXT WEEK AFTER BEING CRITICIZED IN LOUISIANA FOR BRINGING HIS SONS ALONG ON A STATESUBSIDIZED TRADE MISSION TO CHINA LAST YEAR SEN JOHNSTON WROTE A LETTER OF APOLOGY TO THE ADVOCATE A BATON ROUGE NEWSPAPER HE SAID THAT WHILE HIS SONS' INCLUSION ON THE TRIP VIOLATED NO LEGAL OR ETHICAL STANDARDS IT COULD BE AND WAS SUBJECT TO MISINTERPRETATION IN POLITICAL LIFE APPEARANCES ARE SOMETIMES AS IMPORTANT AS SUBSTANCE I GOOFED AND I APOLOGIZE NEXT TIME I WILL BE MORE SENSITIVE THE LETTER ADDED 9404220204 940422 PEPPERAND SALT JUST SAY THE MAGIC PHRASE TO THEM I'LL TAKE YOU TO THE MALL I WOULDN'T HAVE TIME FOR A NAP 9404220203 940422 NASD PUNISHES FIRMS PEOPLE FOR VIOLATIONS SAN FRANCISCO CONCERN IS AMONG THOSE CHARGED BY SECURITIES GROUP BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC SAID IN WASHINGTON THAT IT TOOK DISCIPLINARY ACTION AGAINST A NUMBER OF FIRMS AND INDIVIDUALS FOR VIOLATIONS OF NASD RULES AND SECURITIES LAWS EXPANSION CAPITAL SECURITIES INC SAN FRANCISCO AND PRINCIPAL MICHAEL JOSEF MEYER WERE FINED 145000 JOINTLY AND SEVERALLY EACH RESPONSIBLE FOR THE FULL AMOUNT AND ORDERED TO PAY 3275 IN RESTITUTION TO A CUSTOMER THE FIRM WAS EXPELLED AND MR MEYER BARRED BASED ON FINDINGS THAT THEY FAILED TO MAINTAIN ACCURATE BOOKS AND RECORDS AND FAILED TO MAINTAIN REQUIRED MINIMUM NET CAPITAL THE NASD ALSO SAID THE FIRM AND MR MEYER FALSELY SAID A CUSTOMER'S ALLEGATIONS OF UNAUTHORIZED TRADING WERE WITHOUT MERIT THE SANCTIONS HAVE BEEN APPEALED TO THE SECURITIES AND EXCHANGE COMMISSION BOB HEDGES FINANCIAL SERVICES INC DELRAY BEACH FLA AND PRINCIPAL ROBERT D HEDGES DEERFIELD BEACH FLA WERE FINED 60000 JOINTLY AND SEVERALLY THE FIRM WAS PROHIBITED FROM USING ANY FORM OF ADVERTISING OR SALES LITERATURE AS DEFINED IN NASD RULES FOR ONE YEAR AND REQUIRED FOR THE NEXT TWO YEARS TO FILE OR OBTAIN PRIOR APPROVAL FOR ADVERTISING AND SALES LITERATURE MR HEDGES WAS SUSPENDED AS A GENERAL SECURITIES PRINCIPAL FOR 30 DAYS AND ASSOCIATED PERSON DONALD C ALGER SR FORT LAUDERDALE FLA WAS FINED 25836 AND BARRED THE NASD SAID THE FIRM AND MR HEDGES PERMITTED MR ALGER AND ANOTHER INDIVIDUAL TO CONDUCT BUSINESS WITHOUT BEING REGISTERED FAILED TO FILE CERTAIN REPORTS AND DISSEMINATED SALES COMMUNICATIONS THAT DIDN'T COMPLY WITH NASD AND OTHER RULES CHATFIELD DEAN & CO ENGLEWOOD COLO AND PRINCIPAL KEVIN C GROM CHICAGO WERE EACH FINED 25000 AND MR GROM SUSPENDED FOR 14 BUSINESS DAYS AND REQUIRED TO REQUALIFY AS A GENERAL SECURITIES PRINCIPAL BROKER FRANK J CUSTABLE JR GLENDALE HEIGHTS ILL WAS FINED 20000 AND BARRED THE SEC AFFIRMED THE SANCTIONS FOLLOWING AN APPEAL OF NASD FINDINGS THAT MR CUSTABLE EXECUTED AN UNAUTHORZIED TRANSACTION IN A CUSTOMER'S ACCOUNT AND THE FIRM DIDN'T PROPERLY SUPERVISE HIM MR CUSTABLE AND MR GROM ARE NO LONGER WITH CHATFIELD DEAN THE FIRM SAID D E WINE INVESTMENTS INC HOUSTON AND THREE PRINCIPALS DUNCAN ERIC WINE HOUSTON WILLIAM RANDAL MILLER SPRING TEXAS AND KENNETH BROWNING KARPF OF SPRING WERE FINED 5000 JOINTLY AND SEVERALLY AND REQUIRED TO PAY 11429 IN RESTITUTION THEY DIDN'T ADMIT OR DENY FINDINGS THAT THE FIRM AND THE PRINCIPALS BOUGHT AND SOLD SECURITIES AT UNFAIR MARKUPS OR MARKDOWNS PROTECTIVE GROUP SECURITIES CORP EDEN PRAIRIE MINN AND THREE PRINCIPALS RICHARD JAMES COCHRANE OF EDINA MINN MICHAEL FREDERICK FLANNIGAN EXCELSIOR MINN AND DEBORAH RAE DAVIDSON PLYMOUTH MINN WERE FINED 5000 JOINTLY AND SEVERALLY AND REQUIRED TO PAY 7643 IN RESTITUTION TO PUBLIC CUSTOMERS THE NASD SAID THEY CHARGED EXCESSIVE COMMISSIONS I DON'T THINK IT WAS RIGHT MR COCHRANE SAID OF THE NASD ACTION MR FLANNIGAN SAID HE DIDN'T BELIEVE THE COMMISSIONS WERE EXCESSIVE THE FIRM SAID ITS COMMISSION SCHEDULES HAVE BEEN CHANGED UNLESS OTHERWISE NOTED NONE OF THE FIRMS OR INDIVIDUALS HAD ANY COMMENT OR COULD BE REACHED INDIVIDUALS BARRED OR SUSPENDED INCLUDED ALFRED ABDO JR WINSTONSALEM NC FINED 25000 SUSPENDED FOR 30 DAYS AND ORDERED TO DISCLOSE A CIVIL LAWSUIT FILED BY CUSTOMERS BERNARD BERGER HOLLYWOOD FLA FINED 25000 AND BARRED SCOTT L BOLZAN AURORA ILL FINED 10000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS ROBERT LEE BOYD JACKSON MISS FINED 25000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS ALSO JOHN T BUTLER READING PA WAS FINED 2500 AND SUSPENDED FOR 10 BUSINESS DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT HE LEFT AN OFFENSIVE/HARASSING MESSAGE ON A CUSTOMER'S VOICE MAIL AFTER THE CUSTOMER HUNG UP ON A COLD CALL BRIAN D CARPENTER STOCKTON CALIF WAS FINED 5000 AND SUSPENDED FOR TWO YEARS DANIEL L CHABOT SR CUMBERLAND RI WAS FINED 20000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT HE MISAPPROPRIATED 13915 GONG CHEN PITTSBURGH WAS FINED 10000 BARRED AND REQUIRED TO REPAY AN 18502 DEBIT BALANCE IN HIS SECURITIES ACCOUNT WITHOUT ADMITTING OR DENYING ALLEGATIONS THOMAS P CORCORAN OF MANLIUS NY WAS FINED 20000 AND SUSPENDED FOR SIX MONTHS WITHOUT ADMITTING OR DENYING ALLEGATIONS KEVIN J CROCKER VIRGINIA BEACH VA WAS FINED 50000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS DARRELL STEVEN DALTON LAS VEGAS FINED 1000 AND SUSPENDED FOR 90 DAYS MR DALTON SAID THE NASD SEEMED TO HAVE LACKED EMPATHY IN THIS CASE BY TAKING A KNOWN FELON'S WORD OVER MY WORD I AM MOUNTING MY THIRD APPEAL TO THE SEC OVER THIS MATTER DOUGLAS DONALD DEROSE OF BUFFALO NY WAS FINED 15000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS LOUIS FELDMAN CORAL SPRINGS FLA FINED 10000 SUSPENDED FOR 10 BUSINESS DAYS PENALTIES APPEALED TO THE SEC MR FELDMAN SAID HE DENIES THE ALLEGATIONS GERALD L FIELDS JR OF CARMICHAELS PA FINED 30000 BARRED AND REQUIRED TO PAY 1477 IN RESTITUTION TO CUSTOMERS WITHOUT ADMITTING OR DENYING CHARGES MANUEL H GODWIN JR WEST BLOOMFIELD MICH FINED 40000 BARRED AND REQUIRED TO PAY 5135 IN RESTITUTION WITHOUT ADMITTING OR DENYING ALLEGATIONS GREGORY L GREENWAY TULSA OKLA FINED 65000 BARRED AND REQUIRED TO PAY 9077 IN RESTITUTION PETER THOMPSON HIGGINS METUCHEN NJ SUSPENDED FOR THREE BUSINESS DAYS PENALTIES AFFIRMED BY THE SEC BUT APPEALED TO A US COURT OF APPEALS WAYNE DARRELL INGBRITSON WALNUT CREEK CALIF WAS BARRED A PENALTY APPEALED TO THE SEC JAMES SHERMAN JACKSON OF IRVING TEXAS FINED 10000 AND BARRED MICHAEL G KESELICA GAITHERSBURG MD FINED 30000 AND BARRED PENALTIES APPEALED TO THE SEC GREGORY J KUCZORA ROCKFORD ILL WAS FINED 5000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS RANDY M LANG ALTOONA PA FINED 5700 BARRED AND ORDERED TO PAY 1133 IN RESTITUTION WITHOUT ADMITTING OR DENYING ALLEGATIONS ANDREA LARUSSO LA GRANGE ILL BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS JONATHAN J LEARY STOW MASS FINED 10000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS MICHAEL LINCICOME AND JAMES T NEALY ARDMORE OKLA EACH FINED 35000 AND BARRED WITHOUT ADMITTING ALLEGATIONS TRACEY L LINGLE MOKENA ILL FINED 15000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS JEFFREY SCOTT LIPPERER JEFFERSON WIS FINED 100000 BARRED AND REQUIRED TO PAY 39323 IN RESTITUTION WITHOUT ADMITTING OR DENYING ALLEGATIONS STEVEN D MALIAGROS ASTORIA NY BARRED NATHAN M MARGOLIN FORT LAUDERDALE FLA FINED 100000 BARRED AND REQUIRED TO PAY 555845 IN RESTITUTION HE DIDN'T ADMIT OR DENY FINDINGS THAT HE CONVERTED CUSTOMER FUNDS AND SECURITIES TO HIS OWN USE FRANK W MCLAUGHLIN JR VERO BEACH FLA WAS FINED 100000 BARRED AND REQUIRED TO PAY 20000 IN RESTITUTION TO HIS FORMER MEMBER FIRM KEVIN A MURPHY ELFERS FLA FINED 5000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS MR MURPHY REFUTED THE NASD'S CLAIMS ASSERTING THAT HE HAD NO KNOWLEDGE OF ANYTHING THAT TRANSPIRED THE CASE INVOLVED A TRANSACTION MADE SEVEN OR EIGHT YEARS AGO BUT THE CUSTOMER DIDN'T BRING IT TO ANYONE'S ATTENTION UNTIL A YEAR AGO LARRY WAYNE PHELPS ALBUQUERQUE NM WAS FINED 100000 AND BARRED AND REQUIRED TO PAY 31739 IN RESTITUTION TO CUSTOMERS WITHOUT ADMITTING OR DENYING ALLEGATIONS CHARLES E PLACER NEW MARTINSVILLE W VA BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS RONNIE L POWELL HEMLOCK NY FINED 5000 AND BARRED WITHOUT ADMITTING ALLEGATIONS HUGH WILLIAM ROACH SR SPARTANBURG SC FINED 90000 AND BARRED WITHOUT ADMITTING ALLEGATIONS ROBERT T ROBERTS LAWRENCEVILLE GA BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS JOHN H ROMFH JACKSON MISS FINED 10000 AND SUSPENDED FOR FOUR MONTHS WITHOUT ADMITTING OR DENYING ALLEGATIONS HANS J A SCHMIDT EDMONDS WASH WAS FINED 100000 BARRED AND REQUIRED TO PAY 67000 TO A CUSTOMER WITHOUT ADMITTING OR DENYING ALLEGATIONS ROGER ANTHONY SEXTER MINNEAPOLIS FINED 2000 AND SUSPENDED FOR THREE BUSINESS DAYS JAMES L SMITH MONTGOMERY ALA FINED 42500 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS DAVID RITCHIE SMITH SAUSALITO CALIF FINED 35000 JOINTLY AND SEVERALLY WITH OTHER RESPONDENTS AND BARRED IN ANY PRINCIPAL OR SUPERVISORY CAPACITY AND FOR 90 DAYS IN ANY CAPACITY CHARLES R STEDMAN TUCSON ARIZ FINED 20000 AND BARRED SANCTIONS APPEALED TO THE SEC STEPHEN T STRABALA SALEM OHIO FINED 10000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS RONALD D SWAYZE MALVERN ARK FINED 25000 BARRED AND REQUIRED TO PAY 4976 IN RESTITUTION ALSO DANIEL THOMAS TAFFE MINNETONKA MINN WAS FINED 5000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS JOHN VIGNOVICH BETHEL PARK PA FINED 15000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS SCOTT REED WARREN CORPUS CHRISTI TEXAS FINED 10000 AND SUSPENDED FOR TWO YEARS THEODORE G PECK IV KINGSTON NY FINED 25000 WITHOUT ADMITTING OR DENYING ALLEGATIONS AND NELSON ERIC ROSELAND OAKLAND CALIF FINED 20000 WITHOUT ADMITTING OR DENYING ALLEGATIONS 9404220201 940422 DUTCH UNEMPLOYMENT RISES THE HAGUE REGISTERED UNEMPLOYMENT IN THE NETHERLANDS SURGED 33 IN THE FIRST QUARTER FROM A YEAR EARLIER TO ITS HIGHEST LEVEL IN NINE YEARS THE GOVERNMENT SAID THE HAGUEBASED CENTRAL BUREAU FOR STATISTICS SAID UNEMPLOYMENT ROSE TO 520000 PEOPLE FROM 391000 THE DATA ARE ACCORDING TO THE GOVERNMENT'S NARROW MEASURE OF JOBLESSNESS ON BROADERBASED INTERNATIONAL REPORTING NORMS DUTCH UNEMPLOYMENT WOULD BE ABOUT 1520 HIGHER THAN THE DATA REPORTED MONTHLY BY THE BUREAU 9404220200 940422 WHO'S NEWS ALLTEL CORP ALLTEL CORP LITTLE ROCK ARK MICHAEL T FLYNN 45 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF GROUP PRESIDENT OF THIS TELECOMMUNICATIONS COMPANY MR FLYNN WILL OVERSEE OPERATION OF ALLTEL'S LOCAL TELEPHONE PRODUCT DISTRIBUTION DIRECTORY PUBLISHING AND MARKET RESEARCH COMPANIES PRIOR TO JOINING ALLTEL MR FLYNN SERVED AS PRESIDENT OF SOUTHWESTERN BELL TELEPHONE CO'S ARKANSAS DIVISION 9404220199 940422 WHO'S NEWS ALUMINUM CO OF AMERICA ALUMINUM CO OF AMERICA PITTSBURGH RICHARD B KELSON 47 YEARS OLD FORMERLY SENIOR VICE PRESIDENT OF ENVIRONMENT HEALTH AND SAFETY WAS NAMED EXECUTIVE VICE PRESIDENT OF ENVIRONMENT HEALTH AND SAFETY AND GENERAL COUNSEL AT THIS ALUMINUM CONCERN HE WILL ASSUME THE ADDITIONAL DUTIES OF GENERAL COUNSEL FOLLOWING THE MAY 31 RETIREMENT OF R LEE HOLZ 58 WHO HAS BEEN VICE PRESIDENT AND GENERAL COUNSEL 9404220198 940422 US STEEL IMPORTS IN FEBRUARY SHOWED BIG RISE FROM 1993 WASHINGTON US STEEL IMPORTS IN FEBRUARY EASED 18 FROM JANUARY BUT WERE UP 160 FROM FEBRUARY 1993 IMPORTS IN THE LATEST MONTH TOTALED 2180000 TONS COMPARED WITH 2210000 TONS IN JANUARY AND 838000 TONS A YEAR EARLIER ACCORDING TO THE AMERICAN IRON AND STEEL INSTITUTE'S COMPILATION OF COMMERCE DEPARTMENT STATISTICS THE AMERICAN INSTITUTE FOR INTERNATIONAL STEEL SAID A BIG REASON FOR THE INCREASE IN IMPORTS FROM FEBRUARY 1993 WAS US STEEL MILL PURCHASES OF SEMIFINISHED STEEL SEMIFINISHED IMPORTS JUMPED 297 TO 706000 TONS FROM 178000 TONS US MILLS ARE BUYING SEMIFINISHED STEEL IN AN EFFORT TO KEEP UP WITH RISING DEMAND STILL FINISHED STEEL IMPORTS POSTED A LARGE INCREASE TOO RISING 123 TO 15 MILLION TONS FROM 660000 TONS IN FEBRUARY 1993 THE INSTITUTE SAID THE AMERICAN IRON AND STEEL INSTITUTE SAID IMPORTS REPRESENTED 241 OF CONSUMPTION IN FEBRUARY DOWN SLIGHTLY FROM 247 IN JANUARY AND UP FROM 114 IN FEBRUARY 1993 STEEL EXPORTS IN FEBRUARY TOTALED 264918 TONS DOWN 44 FROM JANUARY'S EXPORTS OF 277060 TONS AND DOWN 209 FROM THE 335000 TONS IN THE YEAREARLIER MONTH 9404220197 940422 WHO'S NEWS BF GOODRICH CO BF GOODRICH CO AKRON OHIO JON V HEIDER SENIOR VICE PRESIDENT AND GENERAL COUNSEL OF THIS MAKER OF SPECIALTY CHEMICALS AND AIRCRAFT PARTS WAS NAMED EXECUTIVE VICE PRESIDENT MR HEIDER IS 60 YEARS OLD 9404220196 940422 REVCO DS SENIOR NOTES TWINSBURG OHIO REVCO DS INC SAID IT COMPLETED THE SOLICITATION OF CONSENTS FROM HOLDERS OF ITS 9 1/8 SENIOR NOTES DUE IN 2000 TO CERTAIN INDENTURE AMENDMENTS REQUIRED BECAUSE OF REVCO'S ACQUISITION OF HOOKSUPERX INC THE DRUGSTORE OPERATOR HAS ENTERED INTO A SUPPLEMENTAL INDENTURE DATED APRIL 20 WITH RESPECT TO THE NOTES 9404220195 940422 INTERNATIONAL CIBAGEIGY PLANS CHINA VENTURE BASEL SWITZERLAND CIBAGEIGY AG A LARGE SWISS CHEMICAL AND PHARMACEUTICALS GROUP SAID IT HAS SIGNED AN AGREEMENT TO FORM A JOINT VENTURE IN CHINA TO PRODUCE INSECTICIDES THE JOINT VENTURE TO BE NAMED QINGDAO CIBA AGRO LTD WILL BE 55OWNED BY CIBA AND 45OWNED BY QINGDAO PESTICIDES FACTORY CIBA SAID THE NEW COMPANY IS SCHEDULED TO BEGIN OPERATIONS IN 1996 AFTER CONSTRUCTION OF A MANUFACTURING PLANT AND WILL EMPLOY ABOUT 180 PEOPLE 9404220194 940422 WHO'S NEWS FRUIT OF THE LOOM INC FRUIT OF THE LOOM INC CHICAGO ARNOLD RIBET 66 YEARS OLD FORMERLY EXECUTIVE VICE PRESIDENT SALES AND MARKETING OF ONEITA INDUSTRIES INC WAS NAMED TO THE NEWLY CREATED POST OF EXECUTIVE VICE PRESIDENT BUSINESS DEVELOPMENT OF THIS MAKER OF UNDERWEAR CASUAL WEAR AND ACTIVE WEAR 9404220193 940422 CANADIAN STEEL OUTPUT OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 277831 METRIC TONS IN THE WEEK ENDED SATURDAY A 09 INCREASE FROM 275484 TONS IN THE PREVIOUS WEEK BUT A 65 DECLINE FROM 297237 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON EQUALS 22046 POUNDS YEARTODATE PRODUCTION TOTALED 3929429 TONS A 57 DECLINE FROM 4165897 TONS A YEAR EARLIER 9404220192 940422 MALAYSIA AGREES TO SEEK TO SELL STATEOWNED BANK BY STEPHEN DUTHIE STAFF REPORTER OF THE WALL STREET JOURNAL KUALA LUMPUR MALAYSIA MALAYSIAN DEPUTY PRIME MINISTER DATUK ANWAR IBRAHIM SAID THE GOVERNMENT INTENDS TO SELL BANK BUMIPUTRA MALAYSIA BHD THE COUNTRY'S SECONDLARGEST BANK DATUK ANWAR ALSO MALAYSIA'S FINANCE MINISTER SAID HE AND THE GOVERNMENT OF PRIME MINISTER MAHATHIR MOHAMAD ARE AGREEABLE TO SELLING THE INSTITUTION WHICH HAD SEVERAL SETBACKS IN THE 1980S THE DEPUTY PRIME MINISTER ALSO CONFIRMED GOVERNMENT PLANS TO SET UP A STATE CORPORATION TO MANAGE ASSETS OWNED BY THE MINISTRY OF FINANCE INC THE MINISTRY'S INVESTMENT ARM DATUK ANWAR REFERRED TO THE PROPOSED STATE INVESTMENT HOLDING COMPANY AS KHAZANAH HOLDINGS WHILE AN EARLIER REPORT REFERRED TO THE CONCERN AS KHAZANAH MALAYSIA BHD DATUK ANWAR SAID ACQUISITION PROPOSALS WILL BE CONSIDERED BUT PROPOSALS MUST COMPLY WITH MALAYSIA'S BANKING AND FINANCIAL INSTITUTIONS ACT THE ACT STIPULATES THAT ANY PARTY INTERESTED IN ACQUIRING A FINANCIAL INSTITUTION MUST FIRST SECURE THE APPROVAL OF BANK NEGARA MALAYSIA'S CENTRAL BANK BEFORE NEGOTIATIONS CAN BEGIN ANY COMPANY SEEKING TO ACQUIRE A STAKE OF 20 OR MORE IN SUCH AN INSTITUTION FIRST MUST GET PERMISSION FROM THE FINANCE MINISTER IN 1991 THE GOVERNMENT PAID M115 BILLION US4272 MILLION TO PETROLIAM NASIONAL BHD OR PETRONAS THE COUNTRY'S NATIONAL OIL COMPANY TO ACQUIRE THE BANK PETRONAS INITIALLY ACQUIRED BANK BUMIPUTRA FROM THE GOVERNMENT IN THE MID1980S THROUGH A FINANCIAL RESCUE OPERATION IN THE LARGEST BANKING SCANDAL IN MALAYSIA'S HISTORY BANK BUMIPUTRA RECORDED LOAN LOSSES AMOUNTING TO M226 BILLION THROUGH CREDIT EXTENDED TO SEVERAL HONG KONG PROPERTY DEVELOPERS PETRONAS PAID NEARLY M25 BILLION ABOUT HALF OF WHICH WAS USED TO BUY SOME OF THE INSTITUTION'S NONPERFORMINGLOAN PORTFOLIO AND THE BALANCE USED TO REPLENISH ITS SHAREHOLDERS' CAPITAL FIVE YEARS LATER IN 1989 PETRONAS INJECTED M9824 MILLION INTO BANK BUMIPUTRA AFTER THE BANK MADE M123 BILLION IN PROVISIONS FOR INTEREST PAYMENTS FROM INCOME PREVIOUSLY RECORDED BUT NEVER ACTUALLY RECEIVED THE HEFTY PROVISIONS THIS TIME MADE ON DOMESTIC PROPERTY LOANS WIPED OUT ITS SHAREHOLDERS' FUNDS FOR THE SECOND TIME BANK BUMIPUTRA HAS GRADUALLY RECOVERED FOR 1993 THE BANK REPORTED A COMBINED PRETAX PROFIT OF M806 MILLION FOR ITSELF AND ITS SUBSIDIARIES UP SHARPLY FROM M424 MILLION THE PREVIOUS YEAR ON THE REASONS FOR THE INCORPORATION DATUK ANWAR SAID THAT A SINGLE FULLTIME MANAGEMENT TEAM COULD MORE PROFESSIONALLY OVERSEE THE FINANCE MINISTRY'S VAST CORPORATE ASSETS AS WELL AS TARGET GROWTH INDUSTRIES 9404220191 940421 EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9404220190 940422 MIDLANTIC APPLIES TO MERGE UNITS EDISON NJ MIDLANTIC CORP SAID IT FILED AN APPLICATION WITH THE OFFICE OF THE COMPTROLLER OF THE CURRENCY TO MERGE CONTINENTAL BANK ITS PENNSYLVANIA BANK SUBSIDIARY INTO MIDLANTIC NATIONAL BANK ITS NEW JERSEY BANK SUBSIDIARY THE PROPOSED MERGER WILL ENABLE MIDLANTIC CUSTOMERS WHETHER IN NEW JERSEY OR PENNSYLVANIA TO TRANSACT ALL THEIR BUSINESS AT ANY OF THE CORPORATION'S 325 BANKING OFFICES IN EITHER STATE PENDING REGULATORY APPROVAL IT IS ANTICIPATED THAT THE MERGER WILL BE COMPLETED BY YEAREND 1994 9404220188 940422 INTERNATIONAL JAPAN COALITION CLOSE TO SELECTING PRIME MINISTER BY MICHAEL WILLIAMS AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPAN'S RULING COALITION REACHED A COMPROMISE EARLY FRIDAY ON CONTENTIOUS POLICY ISSUES PAVING THE WAY FOR THE SELECTION OF A NEW PRIME MINISTER BUT THE ACCORD MAY MERELY PAPER OVER DIFFERENCES AMONG THE COALITION PARTNERS BODING ILL FOR GOVERNMENT STABILITY IN THE MONTHS AHEAD ALLIANCE LEADERS SAID THEY STRUCK A DEAL ON FINANCING AN INCOMETAX CUT AND COPING WITH NORTH KOREA'S SUSPECTED NUCLEARARMS PROGRAM DISAGREEMENTS ON THOSE ISSUES HAD THREATENED TO SPLIT THE COALITION IN THE TWO WEEKS SINCE PRIME MINISTER MORIHIRO HOSOKAWA ANNOUNCED HIS RESIGNATION APRIL 8 THE GROUPS WERE SCHEDULED TO DETAIL THE ACCORD AND NOMINATE A CANDIDATE TO SUCCEED MR HOSOKAWA LATER FRIDAY FOREIGN MINISTER TSUTOMU HATA A LEADING REFORMIST IS EXPECTED TO GET THE NOD A FORMAL VOTE IN PARLIAMENT TO SELECT A PRIME MINISTER IS EXPECTED EARLY NEXT WEEK ALTHOUGH THIS LATEST ROUND OF WRANGLING APPEARS NEAR AN END IT REMAINS TO BE SEEN WHETHER THE COALITION CAN LEGISLATE A PERMANENT INCOMETAX CUT MARKETOPENING MEASURES AND OTHER BILLS OF CRUCIAL CONCERN TO THE US AND JAPAN'S OTHER TRADING PARTNERS A TAX CUT IS SEEN AS A WAY OF STIMULATING JAPAN'S DOMESTIC DEMAND AND THUS ITS APPETITE FOR FOREIGN GOODS BECAUSE OF ITS INTERNAL DIVISIONS OVER TAXES AND FOREIGN POLICY MANY OBSERVERS DOUBT WHETHER THE COALITION CAN HANG TOGETHER EVEN IF IT DOES JAPAN IS EXPECTED TO HOLD A NEW GENERAL ELECTION ONCE IT FINISHES REDRAWING ITS PARLIAMENTARY ELECTORAL DISTRICTS THAT VOTE COULD COME AS SOON AS SIX MONTHS FROM NOW AND COULD WELL PRODUCE AN ENTIRELY NEW GOVERNMENT IN THE MEANTIME BEYOND A SHARED DESIRE TO HOLD POWER THE ONLY GLUE HOLDING TOGETHER THE ALLIANCE IS THE NEED TO PASS A BUDGET FOR THE FISCAL YEAR THAT BEGAN APRIL 1 ONCE A BILL IS PASSED AS EARLY AS NEXT MONTH POLITICIANS MIGHT FIND THEMSELVES REFIGHTING SOME OF THE PITCHED BATTLES OVER TAXES THAT HAVE ROCKED THE COALITION ON SEVERAL OCCASIONS SINCE LAST YEAR THE SOCIALISTS THE LARGEST PARTY IN THE COALITION HAVE OPPOSED A PLAN TO BOOST SALES TAXES AS A WAY OF FINANCING A LARGESCALE INCOMETAX CUT THE PARTY HAS SHOWN SIGNS NOT ONLY OF BREAKING WITH ITS COALITION ALLIES OVER THE MATTER BUT ALSO OF SPLITTING FROM WITHIN A DEFECTION OF A LARGE NUMBER OF SOCIALISTS COULD LEAVE THE COALITION WITHOUT A MAJORITY INVITING ANOTHER PERIOD OF EXTENDED CHAOS AS POLITICIANS TRIED TO PATCH TOGETHER A NEW GOVERNMENT 9404220187 940422 MONEY FUND ASSETS FELL IN LATEST WEEK WASHINGTON MONEYMARKET MUTUAL FUND ASSETS DIVED 543 BILLION TO 60197 BILLION FROM A REVISED 6074 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE REPORTED ASSETS OF 665 RETAIL MONEYMARKET MUTUAL FUNDS ROSE BY 440 MILLION TO 42616 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 413 TAXABLE MONEY MARKET FUNDS INCREASED BY 198 BILLION TO 33161 BILLION WHILE ASSETS OF 252 TAXEXEMPT FUNDS SLIPPED 154 BILLION TO 9455 BILLION ASSETS OF 284 INSTITUTIONAL MONEYMARKET FUNDS DECLINED BY 588 BILLION TO 17581 BILLION AMONG INSTITUTIONAL FUNDS 229 TAXABLE MONEYMARKET FUND ASSETS DROPPED BY 434 BILLION TO 15382 BILLION ASSETS OF 55 TAXEXEMPT FUNDS FELL 153 BILLION TO 2199 BILLION 9404220186 940422 WHO'S NEWS NEIMANMARCUS GROUP INC NEIMANMARCUS GROUP INC CHESTNUT HILL MASS BURTON TANSKY 56 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS RETAILER'S BERGDORF GOODMAN UNIT WILL BECOME CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NEIMANMARCUS STORES MAY 1 HE WILL SUCCEED TERRY LUNDGREN 41 WHO RESIGNED IN FEBRUARY TO ACCEPT ANOTHER POSITION STEPHEN C ELKIN 51 PRESIDENT AND CHIEF OPERATING OFFICER OF BERGDORF WILL SUCCEED MR TANSKY AS CHAIRMAN AND CHIEF EXECUTIVE OF THAT SEGMENT 9404220185 940422 GENERAL DYNAMICS UNIT CONTRACT STERLING HEIGHTS MICH GENERAL DYNAMICS CORP'S LAND SYSTEMS DIVISION SAID IT RECEIVED A 116 MILLION CONTRACT FROM THE US ARMY TO PRODUCE 11369 COMBAT RADIOS AND ASSOCIATED EQUIPMENT THE RADIOS CALLED SINGLE CHANNEL GROUND AND AIRBORNE RADIO SYSTEMS WILL BE DELIVERED BEGINNING IN 1995 GENERAL DYNAMICS IS BASED IN FALLS CHURCH VA 9404220184 940422 WHO'S NEWS HOWTEK INC HOWTEK INC HUDSON NH ANTHONY FINIZIO WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER MR FINIZIO SUCCEEDS DAVID R BOTHWELL WHO WILL REMAIN CHIEF EXECUTIVE OFFICER MR FINIZIO 50 YEARS OLD WAS FORMERLY PRESIDENT OF HOUSTON INSTRUMENT A MAKER OF PLOTTERS AND SCANNERS BASED IN AUSTIN TEXAS HOWTEK MAKES IMAGESCANNER PRODUCTS FOR THE NEWSPAPER PUBLISHING AND GRAPHIC ARTS MARKETS 9404220183 940422 INTERNATIONAL CADBURY BUYS SPANISH CONCERN LONDON UNITED KINGDOM FOOD AND DRINKS GROUP CADBURY SCHWEPPES PLC SAID IT BOUGHT INDUSTRIAS DULCIORA SA A MAJOR SPANISH SUGAR CONFECTIONARY GROUP FOR AN UNDISCLOSED SUM OF CASH DULCIORA'S 1993 SALES TOTALED 213 MILLION 318 MILLION IT HAS NET TANGIBLE ASSETS OF 87 MILLION CADBURY SAID THAT TOGETHER DULCIORA AND CHOCOLATES HUESO THE GROUP'S EXISTING SPANISH CONFECTIONARY BUSINESS WILL COMBINE TO MAKE CADBURY THE SECONDLARGEST MANUFACTURER IN THE SPANISH CONFECTIONARY MARKET MARKET SHARE WILL BE MORE THAN 9 BY VOLUME 9404220182 940422 INTERNATIONAL JAPAN HOUSEHOLD SPENDING FALLS TOKYO JAPAN'S HOUSEHOLD SPENDING IN FEBRUARY WAS 299585 YEN 2904 A HOUSEHOLD ON AVERAGE DOWN 05 FROM THE CORRESPONDING MONTH A YEAR EARLIER IN REAL TERMS THE STATISTICS BUREAU OF THE PRIME MINISTER'S OFFICE REPORTED REAL HOUSEHOLD SPENDING DISCOUNTS INFLATION THE FALL CAME AFTER A FOURMONTH STRING OF IMPROVED YEARONYEAR HOUSEHOLD SPENDING HOUSEHOLD SPENDING WAS UP 27 IN JANUARY 04 IN DECEMBER 14 IN NOVEMBER AND 04 IN OCTOBER 9404220181 940422 MARKETING & MEDIA TIMES MIRROR NET FELL 24 IN FIRST QUARTER ON BOOKS MAGAZINES LOS ANGELES TIMES MIRROR CO'S FIRSTQUARTER NET INCOME FELL 24 TO 227 MILLION OR 18 CENTS A SHARE REFLECTING A SHARP DROP IN PROFITS OF THE COMPANY'S BOOK AND MAGAZINE PUBLISHING OPERATIONS REVENUE FOR THE QUARTER ENDED MARCH 27 FELL 14 TO 8567 MILLION FROM 8684 MILLION NET INCOME IN THE YEAREARLIER FIRST QUARTER WAS 298 MILLION OR 23 CENTS A SHARE INCLUDING 27 MILLION OF EARNINGS FROM TIMES MIRROR'S RECENTLY SOLD BROADCAST TELEVISION STATIONS OPERATING PROFIT OF TIMES MIRROR'S BOOK MAGAZINE AND OTHER PUBLISHING GROUP FELL TO 119 MILLION FROM 372 MILLION WHICH THE COMPANY BLAMED ON SHARPLY LOWER REVENUE FROM ITS LEGAL PUBLISHER MATTHEW BENDER SEASONAL LOSSES FROM ITS ENLARGED COLLEGE PUBLISHING OPERATIONS AND WEAK NORTH AMERICAN SALES AT ITS LEARNING INTERNATIONAL PROFESSIONAL TRAINING COMPANY BUT PROFIT OF THE COMPANY'S LARGEST OPERATING GROUP NEWSPAPER PUBLISHING CLIMBED TO 362 MILLION FOR THE QUARTER FROM 24 MILLION A YEAR AGO REFLECTING A STEADY INCREASE IN ADVERTISING REVENUE AT THE COMPANY'S FLAGSHIP LOS ANGELES TIMES COUPLED WITH FAVORABLE NEWSPRINT PRICING AND COST CONTAINMENT EFFORTS AT THE COMPANY'S NEWSPAPERS AD REVENUE FOR THE NEWSPAPER GROUP CLIMBED 5 FOR THE MONTH OF MARCH TO 1199 MILLION AND 26 FOR THE FIRST QUARTER TO 3507 MILLION DESPITE THE IMPROVEMENTS IN NEWSPAPER OPERATIONS CHAIRMAN AND CHIEF EXECUTIVE ROBERT F ERBURU SAID HE IS CAUTIOUS IN HIS OUTLOOK FOR THE REST OF 1994 THE UPTURN IN ADVERTISING REVENUES AT THE LOS ANGELES TIMES IS AN ENCOURAGING SIGN BUT IT IS STILL EARLY TO ASSESS THE STRENGTH AND DURABILITY OF ECONOMIC RECOVERY IN SOUTHERN CALIFORNIA HE SAID IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY TIMES MIRROR SHARES ROSE 1 TO 3125 9404220180 940422 WORLD MARKETS PRICES RISE IN LONDON FRANKFURT FALL IN TOKYO HONG KONG SLUMPS ON SELLOFF IN PROPERTY SECTOR A WALL STREET JOURNAL NEWS ROUNDUP LONDON SHARES ROSE SLIGHTLY REINED IN BY DAMPED HOPES FOR LOWER BRITISH INTEREST RATES FRANKFURT EQUITIES ENDED WIDELY HIGHER EXTENDING GAINS INTO A SECOND SESSION BUT TOKYO STOCKS EDGED BROADLY LOWER THURSDAY IN TRADING THINNED BY DEADLOCK ON NAMING A NEW JAPANESE PRIME MINISTER AND BY WEAK ECONOMIC NEWS AND HONG KONG STOCKS FELL SHARPLY BECAUSE OF A SELLOFF AMONG PROPERTY ISSUES MEXICO CITY SHARES SOARED 6 IN A TECHNICAL REBOUND FOLLOWING THREE SESSIONS OF SHARP DECLINES WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11275 UP 023 REFLECTING HIGHER AMERICAN MARKETS AND LOWER EUROPEAN AND ASIA/PACIFIC MARKETS COMPUTERS WITH IBM STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 9556 UP 446 OR 49 WITH INTERNATIONAL BUSINESS MACHINES OF THE US POSTING A 12 GAIN IN ITS LOCAL CURRENCY HOME CONSTRUCTION STOCKS TRAILED AT 13119 DOWN 228 OR 17 WITH SUN HUNG KAI PROPERTIES OF HONG KONG SLIDING 55 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SHED 31016 POINTS WEDNESDAY FELL 8282 TO 1979936 NEAR THE SESSION LOW OF 1979356 ON FRIDAY THE NIKKEI INDEX ROSE 10542 POINTS TO CLOSE THE MORNING SESSION AT 1990478 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 250 MILLION SHARES DOWN SHARPLY FROM 3469 MILLION SHARES A DAY EARLIER LOSERS OVERWHELMED GAINERS 677298 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH DROPPED 2358 POINTS WEDNESDAY FELL 593 TO 160750 JAPAN'S COALITION PARTIES REMAINED AT LOGGERHEADS ON POLICY FOR A NEW GOVERNMENT DELAYING THE SELECTION OF A NEW PRIME MINISTER THE SOCIAL DEMOCRATS CONTINUED TO SNUB DEMANDS FROM CONSERVATIVE COALITION PARTIES THAT IT COMMIT TO RAISE INDIRECT TAXES AND THE REMAINING PARTIES CONSIDERED PROCEEDING WITHOUT THE SOCIALISTS A MOVE THAT COULD THREATEN THE COALITION AND HURT THE STOCK MARKET THE SOCIALISTS LATER DECIDED AGAINST PULLING OUT OF THE COALITION MOST TOKYO INVESTORS REMAINED SIDELINED THURSDAY WHEN THE NIKKEI HELD TO A TIGHT RANGE OF 14133 POINTS AND LOWPRICED SHARES REMAINED THE FOCUS JAPANESE ECONOMIC DATA DIDN'T SUPPORT A GROWING CONSENSUS THAT A RECOVERY IS NEAR FEBRUARY HOUSEHOLD SPENDING FELL FROM A YEAR EARLIER THE FIRST DECLINE IN FIVE MONTHS BUT THE WEAK SPENDING DATA HELPED PROMPT BUYING IN THE BOND MARKET LOWERING BOND YIELDS AND HEARTENING THE STOCK MARKET WHICH WAS UNDER PRESSURE FROM A STRONGER JAPANESE YEN IN CURRENCY DEALINGS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 29 POINTS TO 31012 THE FT 30STOCK INDEX GAINED 80 POINTS TO 24707 VOLUME WAS 7957 MILLION SHARES COMPARED WITH 6755 MILLION SHARES A DAY EARLIER TRADING WAS QUIET DRAWN BETWEEN THE BULLISH EFFECT OF WALL STREET'S BUOYANT OPENING AND THE BEARISH EFFECT OF DATA ON BRITISH RETAIL SALES FOR MARCH WHICH ROSE TWICE AS MUCH FROM FEBRUARY AS FORECAST FURTHER DAMPING HOPES FOR A BRITISH LENDINGRATE REDUCTION DEALINGS FOCUSED ON BANKS AMID TAKEOVER ACTIVITY IN FRANKFURT THE DAX 30STOCK INDEX ROSE 1433 POINTS TO 219697 OVERCOMING EARLY PRESSURE AND REBOUNDING FROM AN INTRADAY LOW OF 218002 SOME PARTICIPANTS WERE NERVOUS BECAUSE THE BOURSE HASN'T BEEN ABLE TO DECOUPLE ITS COURSE FROM THAT OF THE BOND MARKET WHERE PRICES ROSE YESTERDAY IN CHOPPY TRADING IN PARIS DESPITE FRENCH RATE CUTS STOCKS FELL MIMICKING DEVELOPMENTS IN THE DOMESTIC BOND MARKET STOCK TRADERS WERE DISAPPOINTED THAT THE INTERESTRATE REDUCTIONS YESTERDAY BY FRANCE'S CENTRAL BANK WEREN'T DEEP ENOUGH IN AMSTERDAM PRICES FINISHED MIXED HELD DOWN BY A WEAKER DOLLAR AND THE DUTCH CENTRAL BANK'S LEAVING INTEREST RATES UNCHANGED IN MADRID SHARES ROSE ON HOPES FOR A SPANISH RATE CUT FRIDAY IN LINE WITH THE FRENCH REDUCTIONS IN STOCKHOLM PRICES FELL AMID HIGH VOLATILE TURNOVER TROUBLED BY HIGHER SWEDISH RATES AND BOND YIELDS IN ZURICH STOCKS FELL IN THIN VOLUME MARKED BY ACROSSTHEBOARD SELLING BY FOREIGN INVESTORS THE BOURSE WAS PRESSURED BY HIGHER US RATES AND WEAK EUROPEAN BOND MARKETS IN BRUSSELS STOCKS WERE NARROWLY MIXED AS THE SOFT BOND MARKET CONTINUED TO WEIGH ON SHARES SENSITIVE TO INTEREST RATES IN MEXICO CITY THE MARKET SURGED ON BUYING BY BARGAIN HUNTERS DOMINATED BY FOREIGN INVESTORS AFTER THE MARKET HAD DIVED MORE THAN 11 THIS WEEK THROUGH WEDNESDAY SENTIMENT ALSO WAS BOOSTED BY A POSITIVE CORPORATE EARNINGS REPORT WALL STREET'S GAINS AND NEWS THAT PEACE TALKS BETWEEN THE MEXICAN GOVERNMENT AND REBELS IN THE SOUTH MAY RESUME NEXT WEEK IN SYDNEY SHARES FELL FOR A THIRD CONSECUTIVE DAY PRICES ROSE IN EARLY TRADING AS THE BOND MARKET RALLIED BUT SELLING PRESSURE EMERGED IN STOCKINDEX FUTURES IN HONG KONG THE MARKET TUMBLED 31 ON HEAVY SELLING OF PROPERTYRELATED SHARES EXTENDING THEIR LOSING STRING TO SIX SESSIONS IN A ROW AND TAKING THE MAIN INDEX TO ITS LOWEST LEVEL IN A MONTH THE PROPERTY SECTOR PLUNGED 47 IN THE WAKE OF NEWS REPORTS AND ANALYSTS' COMMENTS THAT THE REAL ESTATE BOOM MAY HAVE CRESTED BEARISHNESS WIDENED ON CONCERNS THAT HONG KONG MIGHT BOOST RATES FRIDAY IN SINGAPORE WHILE THE MAIN INDEX EDGED UP THE BROADER MARKET WAS MIXED TO WEAKER ON REVIVED WORRIES ABOUT RISING INTEREST RATES AND VOLATILE OVERSEAS MARKETS PROPERTY STOCKS WERE HARDEST HIT THIS WAS ATTRIBUTED TO THE SECTOR'S SELLOFF IN HONG KONG AND A RATE INCREASE THIS WEEK BY A SINGAPORE BANK IN SEOUL AFTER THREE DAYS OF LOSSES STOCKS CLOSED HIGHER PARTLY ON RENEWED RUMORS THAT SOUTH KOREA WILL WIDEN THE STOCKHOLDING LIMIT ON FOREIGN INVESTORS IN TAIPEI SHARES ADVANCED BROADLY ON INVESTORS' GROWING CONFIDENCE ABOUT FUNDAMENTALS OF TAIWAN'S ECONOMY IN MANILA EQUITIES PLUNGED 24 IN BUSY TRADING IN A TECHNICAL CORRECTION FOLLOWING A SIXSESSION WINNING STREAK IN WELLINGTON SHARES RETREATED 11 IN QUIET TRADING TAKING THEIR LEAD FROM WEAK US AND AUSTRALIAN MARKETS DESPITE NEW ZEALAND'S STRONG ECONOMIC FUNDAMENTALS AMONG CORPORATE DEVELOPMENTS IN TOKYO ITOYOKADO DROPPED 100 YEN OR 18 TO 5350 YEN 5187 THE SUPERMARKET OPERATOR'S CONSOLIDATED PRETAX PROFIT FOR THE YEAR ENDED FEB 28 ROSE 26 TO 18578 BILLION YEN 18 BILLION FROM A YEAR EARLIER BUT NET INCOME FELL 94 TO 5873 BILLION YEN ON A 5 SALES DECLINE TO 2884 TRILLION YEN BECAUSE OF CLOSINGS OF 371 UNPROFITABLE SOUTHLAND 7ELEVEN OUTLETS IN LONDON SMITHKLINE BEECHAM RALLIED 8 PENCE OR 22 TO 372 PENCE 555 THE HEALTH AND HOUSEHOLD PRODUCTS GROUP'S FIRSTQUARTER PRETAX PROFIT INCREASED 15 TO 353 MILLION 5265 MILLION IN PARIS PSA PEUGEOT CITROEN FELL 9 FRENCH FRANCS TO 905 FRANCS 15594 THE AUTO MAKER HAD A 1993 LOSS OF 141 BILLION FRANCS 243 MILLION BETTER THAN ANALYSTS EXPECTED FOLLOWING 1992 PROFIT OF 337 BILLION FRANCS AND THE STOCK'S DROP WAS LIMITED TOO BY SIGNS OF 1994 PROFITABILITY THE COMPANY OMITTED A DIVIDEND THIS YEAR IT PAID 10 FRANCS A SHARE IN 1993 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 9404220179 940422 TECHNOLOGY COMPAQ TO SPLIT STOCK PREDICTS IT WILL REACH NO 1 GOAL BEFORE '96 HOUSTON COMPAQ COMPUTER CORP DECLARED A 3FOR1 STOCK SPLIT AND PREDICTED IT WILL BECOME THE WORLD'S LARGEST PERSONALCOMPUTER MAKER BEFORE ITS GOAL OF 1996 THE PREDICTION BY COMPAQ CHAIRMAN BEN ROSEN CAME AT THE PC MAKER'S ANNUAL MEETING DURING WHICH COMPANY EXECUTIVES GLOATED OVER THEIR FIRSTQUARTER RESULTS AND OVER THE TROUBLES FACING COMPETITORS SUCH AS INTERNATIONAL BUSINESS MACHINES CORP NOTING THAT COMPAQ'S 3FOR1 STOCK SPLIT WOULD LOWER THE STOCK'S TRADING PRICE MR ROSEN SAID IBM TOOK THEIR STOCK FROM 170 DOWN TO 50 AND THEY DIDN'T EVEN HAVE TO ISSUE NEW SHARES COMPAQ'S STOCK YESTERDAY SURGED 67 TO CLOSE AT 10875 UP 6875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING COMPAQ IS ALREADY ON TRACK TO OVERTAKE APPLE COMPUTER INC THIS YEAR AS THE WORLD'S NO 2 PC MAKER BEHIND LEADER IBM ECKHARD PFEIFFER COMPAQ'S CHIEF EXECUTIVE SAID THE COMPANY IS COMMITTED TO AN AGGRESSIVE EXPANSION OF ITS MANUFACTURING CAPACITY BUT SAID THE COMPANY'S PROBLEMS WITH MEETING DEMAND WOULD PROBABLY CONTINUE 9404220177 940422 WHO'S NEWS KIMBERLYCLARK CORP KIMBERLYCLARK CORP DALLAS TWO NEW DIRECTORS WERE NAMED AT THE MAKER OF HOUSEHOLD PERSONALCARE AND HEALTHCARE PRODUCTS FILLING VACANCIES ON THE 13MEMBER BOARD CREATED BY THE PREVIOUSLY ANNOUNCED RETIREMENT OF WILLIAM E LAMOTHE AND GEOFFREY G KALMANSON THE NEW BOARD MEMBERS ARE WOLFGANG R SCHMITT 50 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF RUBBERMAID INC AND RANDALL L TOBIAS 52 CHAIRMAN AND CEO OF ELI LILLY & CO THEY WILL EACH SERVE A THREEYEAR TERM THAT EXPIRES IN 1997 9404220176 940422 STOCKS EXDIVIDEND APRIL 25 INC COMMON FOR EACH SHARE HELD 9404220175 940422 VOLKSWAGEN DIVISION'S SUPPLIERS INGOLSTADT GERMANY AUDI AG THE LUXURYCAR DIVISION OF VOLKSWAGEN AG HAS ABRUPTLY DISMISSED ABOUT 5 OF ITS SUPPLIERS TO THE 800 SERIES CAR MARTIN WINTERKORN AUDI'S QUALITYCONTROL CHIEF SAID MR WINTERKORN SAID AUDI WAS SATISFIED WITH ABOUT 50 OF THE SUPPLIERS FOR THE 800 SERIES BELIEVED 25 WERE MOVING IN THE RIGHT DIRECTION AND THOUGHT 20 NEEDED TO ALTER THEIR WAYS OF DOING BUSINESS THE 5 OF THE SUPPLIERS THAT WERE DISMISSED WOULD NEVER BE ABLE TO MEET AUDI'S STANDARDS MR WINTERKORN ADDED 9404220174 940422 CLIFFS DRILLING CO BUYBACK HOUSTON CLIFFS DRILLING CO SAID ITS BOARD AUTHORIZED THE COMPANY TO BUY BACK AS MANY AS 170000 COMMON SHARES FROM TIME TO TIME IN OPENMARKET TRANSACTIONS DOUGLAS E SWANSON THE ENERGY CONCERN'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN A STATEMENT THAT THE COMPANY'S RECENT STOCK PRICE DOESN'T REFLECT THE VALUE OF THE COMPANY AND THAT THE ACQUISITION OF STOCK IS IN THE BEST INTEREST OF STOCKHOLDERS ON THE NASDAQ STOCK MARKET YESTERDAY CLIFFS CLOSED AT 12375 UP 375 CENTS AS OF MARCH 31 THE COMPANY HAD 4461000 COMMON SHARES OUTSTANDING CLIFFS SAID IT BOUGHT 5000 OF ITS COMMON SHARES IN THE OPEN MARKET DURING DECEMBER 245000 SHARES DURING THE FIRST QUARTER OF THIS YEAR AND 80000 SHARES THIS MONTH 9404220173 940422 INTERNATIONAL WORLD ECONOMY REVOKING TRADE STATUS WOULD HIT CHINA WHERE IT HURTS MOST RISING GUANGDONG BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG IF THE CLINTON ADMINISTRATION NEXT MONTH WITHDRAWS TARIFF PRIVILEGES FROM CHINA FOR HUMANRIGHTS REASONS THE IMPACT ON THE US ECONOMY WILL BE ENORMOUS SO CLAIM BUSINESSMEN WHO BELIEVE DOING SO WOULD BE A TERRIBLE IDEA PUNISHING CHINA BY JEOPARDIZING 200000 JOBS IN THE US WON'T MAKE ANY SENSE SAYS THE PRESIDENT OF THE LOCAL AMERICAN CHAMBER OF COMMERCE ABOUT TO SEND LOBBYISTS TO WASHINGTON TO FIGHT THE IDEA THROTTLING THE CHINA TRADE WOULD COST AMERICA ITS GLOBAL COMPETITIVENESS IN TELECOMMUNICATIONS AEROSPACE AND POWER GENERATION INDUSTRIES VITAL TO BILL CLINTON'S EXPORT STRATEGY WARNS WILLIAM OVERHOLT MANAGING DIRECTOR HERE FOR BANKERS TRUST CO BUT IN CHINA TOO THE EFFECT WOULD BE GREAT THE US MARKET EARNED BEIJING A 24 BILLION HARDCURRENCY SURPLUS LAST YEAR FOR MEETING OTHER ECONOMIC NEEDS AND THERE IS NO OBVIOUS ALTERNATIVE CHINESE LEADERS TRY TO PLAY DOWN ITS IMPORTANCE RATHER THAN CONCEDE THEIR COUNTRY IS VULNERABLE TO OUTSIDE PRESSURE LOSING MOST FAVORED NATION TARIFF TREATMENT WILL ONLY TRIM ONE OR TWO POINTS OFF A 13 GROWTH RATE SAYS THE VICE PREMIER IN CHARGE OF THE ECONOMY SOMETHING CHINA CAN ADJUST TO WITHOUT UNDUE DIFFICULTY IN FACT OFFICIALS SUGGEST THAT MIGHT HELP COOL AN ECONOMY IN DANGER OF OVERHEATING AND THUS COULD EVEN BE A FAVOR THE TRUTH IS DIFFERENT LOSING MFN WOULD STRIKE AT THE CHINESE ECONOMY HARD BUT SELECTIVELY AND NOWHERE WOULD THE IMPACT BE GREATER THAN IN FASTGROWING GUANGDONG PROVINCE A FRANCESIZED AREA OF 65 MILLION PEOPLE IF ANY PART OF CHINA HAS ACCEPTED INTEGRATION INTO THE WORLD ECONOMY IT IS GUANGDONG SAYS A HONG KONG GOVERNMENT OFFICIAL WHO MONITORS THE PROVINCE ITS EXPORTS ROUGHLY MATCH THOSE FOR ALL OF INDIA A NATION WITH 10 TIMES MORE PEOPLE AND ITS DEPENDENCE ON THE US IS ENORMOUS TOYS ELECTRICAL APPLIANCES CLOTHING AND OTHER CONSUMER GOODS POUR THROUGH HONG KONG'S PORT EN ROUTE TO US BUYERS AND MOST OF THESE PRODUCTS HAVE NO OBVIOUS ALTERNATIVE MARKET PUNITIVE TARIFFS WOULD BE DEVASTATING TO GUANGDONG'S THOUSANDS OF SMALL FACTORIES AND WORKSHOPS BUT THE SPILLOVER EFFECT WOULD HIT ALL CHINA NO MATTER HOW SANGUINE LEADERS IN FARAWAY BEIJING PROFESS TO BE GROWTH IN SOUTHERN CHINA IS ESSENTIAL FOR THE GROWTH OF THE COUNTRY AT LARGE WRITES GERALD SEGAL A CHINA SPECIALIST AT LONDON'S INTERNATIONAL INSTITUTE FOR STRATEGIC STUDIES WITHOUT THIS GROWTH THE LEGITIMACY OF THE COMMUNIST PARTY IN BEIJING IS AT RISK OTHERS SUGGEST THIS OVERSTATES THE CASE CHINA COULD PROVIDE GUANGDONG AND A FEW OTHER COASTAL AREAS SPECIAL HELP AND HOLD THINGS TOGETHER BUT NOTHING IS CERTAIN AND THE IMPORTANCE OF THE AMERICAN MARKET TO THAT PROVINCE IS DIFFICULT TO EXAGGERATE LOSING MFN WOULD BE SOCIAL CATASTROPHE SAYS MR OVERHOLT WHO WRITES EXTENSIVELY ON THE GLOBAL IMPORTANCE OF CHINESE ECONOMIC GROWTH HE DESCRIBES A RECENT THREEDAY BUS TRIP THROUGH GUANGDONG WITH POTENTIAL INVESTORS WE WERE NEVER MORE THAN 100 YARDS FROM A CONSTRUCTION SITE DURING THE WHOLE TRIP HE NOTES AND EVERY ONE OF THEM IS ULTIMATELY A BET ON THE CONTINUED OPENING OF THE CHINESE MARKET MUCH OF THIS REFLECTS HONG KONG'S EXPORT OF LABORINTENSIVE WORK ACROSS THE BORDER SOME THREE MILLION GUANGDONG FACTORY HANDS ARE NOW EMPLOYED BY HONG KONG COMPANIES AND SOME 50000 HONG KONG MANAGERS HELP RUN THE CONCERNS THIS SPEEDS HONG KONG'S DEVELOPMENT AS A SERVICE BASE FOR CHINA AND EXPLAINS WHY ITS OWN DIRECT EXPORTS ARE ACTUALLY DROPPING SOME 57 OF TOTAL FOREIGN INVESTMENT IN CHINA SINCE 1979 HAS COME VIA HONG KONG MOST OF IT TO GUANGDONG BUT LOSING EASY ACCESS TO AMERICAN BUYERS WOULD HAVE MORE THAN ECONOMIC IMPACT ON THE PROVINCE AND BY EXTENSION ON CHINA BECAUSE GUANGDONG IS SO CLOSELY CONNECTED TO WORLDWIDE MARKETS ITS SOCIETY ALSO RECEIVES MORE OUTSIDE INFLUENCES AND IDEAS FOR EXAMPLE PROVINCIAL OFFICIALS OFTEN FEEL COMPELLED TO EXPLAIN THEMSELVES WHEN PROBLEMS ARISE SOMETHING UNKNOWN IN MUCH OF CHINA SOCIAL MORES ARE CHANGING THE YOUNG VILLAGE GIRLS WHO WORK IN ONE TOY FACTORY NEAR CANTON FOR INSTANCE NO LONGER SAVE THEIR WAGES SO THEY CAN GO HOME AND BUY A HUSBAND IN THE TRADITIONAL WAY A VISITOR REPORTS INSTEAD MANY LEARN TO LIKE THE INDEPENDENCE THAT A REGULAR INCOME CAN BRING IN BRIEF GUANGDONG'S ECONOMIC SUCCESS HAS HELPED MAKE ITS SOCIETY THE NATION'S MOST POROUS AND THUS THE MOST ADVANCED BY MANY HUMANRIGHTS STANDARDS EVEN THOUGH THERE TOO THE COMMUNIST PARTY STILL RULES AND OPEN DISSENT REMAINS DANGEROUS ALL THIS MEANS BEIJING RISKS BOTH FINANCIAL LOSS AND SOCIAL UNREST IF MFN IS LOST AND THE GUANGDONG ECONOMY SUFFERS THE IMPACT MAY BE MANAGEABLE BUT THE COSTS WOULD BE HIGH SUGGESTING CHINA MAY YET OFFER A FEW CONCESSIONS SO WASHINGTON CAN AVOID MAKING A TRADE DECISION IT DESPARATELY WANTS TO AVOID 9404220172 940422 US BUDGET DEFICIT NARROWED IN MARCH JOBLESS CLAIMS ROSE WASHINGTON THE FEDERAL GOVERNMENT'S BUDGET DEFICIT NARROWED IN MARCH THE MIDPOINT OF THE FISCAL YEAR INCREASING THE CHANCES THAT THE FULLYEAR DEFICIT WILL BE SMALLER THAN ANTICIPATED CLINTON ADMINISTRATION OFFICIALS SAID THE 3232 BILLION MARCH DEFICIT COMPARED WITH DEFICITS OF 4397 BILLION A YEAR EARLIER AND 4157 BILLION IN FEBRUARY THE FEBRUARY DEFICIT WAS ORIGINALLY REPORTED AS 4163 BILLION FOR THE FIRST SIX MONTHS OF THE FISCAL YEAR WHICH ENDS SEPT 30 THE DEFICIT TOTALED 15069 BILLION DOWN FROM 18282 BILLION IN THE SAME PERIOD A YEAR EARLIER AT THE MOMENT WE'RE RUNNING MORE THAN 30 BILLION AHEAD OF 1993 WITH THE FISCAL YEAR HALF OVER TREASURY SECRETARY LLOYD BENTSEN SAID IN A STATEMENT WITH THE ECONOMY SO HEALTHY AND SHOWING SUCH SOLID GROWTH I'M BECOMING INCREASINGLY CONFIDENT WE'RE GOING TO BEAT OUR ESTIMATE FOR 1994 MADE IN JANUARY OF A 235 BILLION DEFICIT FOR FISCAL 1994 THE FISCAL 1993 DEFICIT WAS 24568 BILLION THE TREASURY SAID RECEIPTS TOTALED 9311 BILLION IN MARCH UP FROM 8329 BILLION A YEAR EARLIER AND 7287 BILLION IN FEBRUARY OUTLAYS REACHED 12542 BILLION IN MARCH COMPARED WITH 12726 BILLION A YEAR EARLIER AND 11444 BILLION THE MONTH BEFORE THE GOVERNMENT PAID 1812 BILLION IN INTEREST ON THE DEBT LAST MONTH IN ANOTHER REPORT THE LABOR DEPARTMENT SAID FIRSTTIME CLAIMS FOR UNEMPLOYMENT BENEFITS ROSE 14000 LAST WEEK TO 364000 BRINGING THE FOURWEEK MOVING AVERAGE OF NEW CLAIMS TO 345000 FROM THE PREVIOUS WEEK'S 339000 IT WAS THE THIRD CONSECUTIVE INCREASE AND THE HIGHEST LEVEL SINCE MIDFEBRUARY THE FOURWEEK AVERAGE IS THE HIGHEST SINCE EARLY MARCH HERE IS A SUMMARY OF THE TREASURY'S REPORT IN BILLIONS OF DOLLARS FOR THE SIX MONTHS ENDED MARCH 31 1994 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 9404220171 940422 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 3/4 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 3/4 HIGH 3 1/2 LOW 3 5/8 NEAR CLOSING BID 3 11/16 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 442 180 TO 239 DAYS 465 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 388 30 DAYS 4 60 DAYS 413 90 DAYS CERTIFICATES OF DEPOSIT 332 ONE MONTH 340 TWO MONTHS 355 THREE MONTHS 397 SIX MONTHS 458 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 383 ONE MONTH 415 THREE MONTHS 450 SIX MONTHS BANKERS ACCEPTANCES 376 30 DAYS 386 60 DAYS 401 90 DAYS 413 120 DAYS 424 150 DAYS 434 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 15/16 3 13/16 ONE MONTH 4 1/16 3 15/16 TWO MONTHS 4 1/4 4 1/8 THREE MONTHS 4 3/8 4 1/4 FOUR MONTHS 4 1/2 4 3/8 FIVE MONTHS 4 5/8 4 1/2 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 15/16 ONE MONTH 4 1/4 THREE MONTHS 4 5/8 SIX MONTHS 5 5/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 675 GERMANY 551 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 18 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 376 13 WEEKS 421 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 818 60 DAYS 830 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4875 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 824 60 DAYS 833 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 630 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 298 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9404220170 940422 SEARS POSTS DEFICIT OF 979 MILLION DUE TO ALLSTATE LOSS BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO SEARS ROEBUCK & CO RATTLED BY EARTHQUAKE CLAIMS AT ITS ALLSTATE CORP SUBSIDIARY REPORTED A FIRSTQUARTER NET LOSS OF 979 MILLION OR 27 CENTS A SHARE DESPITE IMPROVED PERFORMANCE IN ITS STORE AND CREDITCARD OPERATIONS IN THE YEAREARLIER QUARTER SEARS HAD RECORD NET INCOME OF 435 MILLION OR 113 A SHARE BUT 118 MILLION OF THAT REPRESENTED DISCONTINUED OPERATIONS REVENUE IN THE LATEST QUARTER CLIMBED 86 TO 1227 BILLION FROM 1130 BILLION ALLSTATE WHICH IS 801OWNED BY SEARS POSTED A NET LOSS OF 2752 MILLION OR 61 CENTS A SHARE COMPARED WITH NET OF 3201 MILLION OR 76 CENTS A SHARE A YEAR EARLIER SEARS'S STOCK JUMPED 2125 TO 4825 AND ALLSTATE SHARES FELL 125 CENTS TO 22875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY ALLSTATE ATTRIBUTED THE RED INK TO SIGNIFICANT CATASTROPHE LOSSES FROM THE JANUARY EARTHQUAKE IN CALIFORNIA ON WEDNESDAY ALLSTATE BOOSTED ITS ESTIMATE FOR QUAKERELATED LOSSES 58 TO 950 MILLION IN ITS SECOND SUCH UPWARD REVISION ALLSTATE SAID IT DOESN'T EXPECT ANY FURTHER INCREASES IN ADDITION TO THE CALIFORNIA QUAKE ALLSTATE WAS HIT BY BIG LOSS CLAIMS FROM WINTER STORMS IN THE EAST AND MIDWEST ALLSTATE'S PROPERTYLIABILITY OPERATIONS RECORDED A LOSS OF 3296 MILLION IN THE FIRST QUARTER COMPARED WITH A PROFIT OF 2635 MILLION FOR THE SAME PERIOD IN 1993 PROFIT FROM LIFEINSURANCE OPERATIONS INCREASED TO 644 MILLION FROM 623 MILLION A YEAR EARLIER SEARS'S MERCHANDISE UNIT DOUBLED ITS EARNINGS TO 1295 MILLION FROM 636 MILLION REVENUE SURGED 12 TO A RECORD TOTAL OF 686 BILLION FROM 611 BILLION A YEAR EARLIER SAMESTORE SALES JUMPED 13 AS SEARS'S SQUEEZED ITS SELLING AND ADMINISTRATIVE EXPENSES TO 27 OF SALES FROM 284 A YEAR AGO THE MERCHANDISE UNIT CONSISTS OF SEARS'S STORE CREDITCARD AND INTERNATIONAL OPERATIONS THE COMPANY ALSO SAID REVENUE FROM ITS CREDITCARD BUSINESS INCREASED 8 TO 878 MILLION AND THAT EARNINGS FROM THE CREDIT OPERATIONS WERE HIGHER SEARS SAID IT HAS STOPPED DISCLOSING EARNINGS RESULTS OF ITS CREDITCARD BUSINESS ANALYSTS SAID RESULTS MET EXPECTATIONS IT LOOKS LIKE THEY'RE ON TRACK FOR SOME PRETTY GOOD GAINS THE REST OF THE YEAR SAID KAREN SACK A RETAIL ANALYST WITH STANDARD & POOR'S RATINGS GROUP SEARS OBSERVERS EXPRESSED SOME CONCERN THAT HIGHER INTEREST RATES MAY WEAKEN CONSUMER CONFIDENCE AND PURCHASES OF BIGTICKET ITEMS SUCH AS HOME APPLIANCES WHICH OFTEN ARE BOUGHT ON CREDIT WE'LL HAVE TO WAIT AND SEE HOW IT AFFECTS THE CONSUMER MS SACK SAID 9404220169 940422 INTERNATIONAL WATERSHED ELECTIONS IN SOUTH AFRICA HOW THEY WORK AND WHAT'S AT STAKE BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL JOHANNESBURG SOUTH AFRICA NEXT WEEK HOLDS ITS WIDELY ANTICIPATED AND HIGHLY PREDICTABLE ELECTION NELSON MANDELA APPEARS A SHOOIN TO BE SOUTH AFRICA'S NEXT PRESIDENT BUT TECHNICALLY WHEN VOTERS GO TO THE POLLS NEXT TUESDAY THROUGH THURSDAY SOUTH AFRICANS WON'T BE VOTING FOR PRESIDENT BUT FOR THOSE WHO WILL ELECT THE PRESIDENT TO CLARIFY THE STRUCTURE OF THIS HISTORIC ELECTION A BRIEF GUIDE FOLLOWS WHO WILL BE VOTING THAT IS THE MOST SIGNIFICANT ASPECT FOR THE FIRST TIME IN THE COUNTRY'S HISTORY ALL ADULT SOUTH AFRICANS BLACK WHITE COLORED AND ASIAN WILL BE GOING TO THE POLLS BRINGING AN END TO WHITE MINORITY RULE WHAT WILL THEY BE VOTING FOR VOTERS WILL BE CASTING TWO BALLOTS ONE FOR THE 400SEAT NATIONAL ASSEMBLY AND ONE FOR ONE OF NINE REGIONAL ASSEMBLIES WHOSE SIZES VARY FROM REGION TO REGION ACCORDING TO POPULATION A THIRD BODY THE 90SEAT SENATE WILL BE COMPOSED OF 10 MEMBERS FROM EACH OF THE NINE REGIONAL ASSEMBLIES BUT ISN'T DIRECTLY ELECTED HOW ARE SEATS APPORTIONED SEATS ARE ALLOTED BY A SYSTEM OF PROPORTIONAL REPRESENTATION THAT MEANS THAT IF A PARTY GETS 50 OF THE VOTES IT GETS 50 OF THE SEATS EACH PARTY PRESENTS A LIST OF CANDIDATES IF IT GETS 50 OF THE VOTES THE FIRST 200 CANDIDATES ON ITS LIST BECOME MEMBERS OF THE NATIONAL ASSEMBLY THE SAME APPLIES TO THE REGIONAL LEGISLATURES WHO IS CONTESTING THE ELECTIONS WITH THE LASTMINUTE INCLUSION OF THE INKATHA FREEDOM PARTY WHICH HAD THREATENED TO BOYCOTT THE ELECTIONS 19 PARTIES INCLUDING THE SOCCER PARTY AND THE KEEP IT STRAIGHT AND SIMPLE PARTY ARE RUNNING MR MANDELA'S AFRICAN NATIONAL CONGRESS IS EXPECTED TO WIN A MAJORITY AND THE RULING NATIONAL PARTY IS EXPECTED TO FINISH SECOND HOW IS THE PRESIDENT ELECTED SOUTH AFRICA'S NEW PRESIDENT WILL BE ELECTED BY THE NATIONAL ASSEMBLY WHEN IT FIRST CONVENES ON MAY 6 SINCE THE ANC IS THE OVERWHELMING FAVORITE TO WIN THE ELECTIONS ITS PRESIDENT MR MANDELA IS THE LIKELY WINNER THE NEW PRESIDENT WILL BE INAUGURATED ON MAY 10 SIMILARLY EACH REGION WILL ELECT A PRIME MINISTER HOW DOES THE PRESIDENT FORM HIS CABINET SOUTH AFRICA'S INTERIM CONSTITUTION WHICH WILL BE IN PLACE DURING THE GOVERNMENT'S FIVEYEAR TERM CALLS FOR A GOVERNMENT OF NATIONAL UNITY ANY PARTY THAT WINS 20 OF THE VOTE OR 80 SEATS IS ENTITLED TO A VICE PRESIDENTIAL POST IF ONLY ONE PARTY WINS THAT MANY SEATS THE PARTY THAT WINS THE SECOND HIGHEST VOTE TOTAL WILL QUALIFY TO HAVE A VICE PRESIDENTIAL POST BOTH THE ANC AND THE NATIONAL PARTY ARE LIKELY TO END UP WITH VICE PRESIDENTS MEANING THAT THE CURRENT PRESIDENT FW DE KLERK IS LIKELY TO BE A VICE PRESIDENT TO HIS SUCCESSOR FOR EACH 5 OF THE VOTES WON A PARTY GETS A SEAT IN THE 27MEMBER CABINET THE PRESIDENT WILL DECIDE WHAT POST GOES TO WHAT PARTY BUT IT'S THE PARTY AND NOT THE PRESIDENT THAT WILL NOMINATE THE OFFICEHOLDER WHAT ARE THE ISSUES IN THE ELECTIONS ISSUES HAVE BEEN LARGELY ABSENT FROM THE CAMPAIGN THIS IS A LIBERATION ELECTION AN ANTIAPARTHEID ELECTION THAT'S ALL SAYS OSCAR DHLOMO EXECUTIVE CHAIRMAN OF THE INSTITUTE FOR MULTIPARTY DEMOCRACY BUT THE NEW GOVERNMENT WILL HAVE TO MEET THE HUGE EXPECTATIONS OF THE LONGDISENFRANCHISED BLACK MAJORITY WHILE MAINTAINING THE ECONOMY ON AN EVEN COURSE IT WILL ALSO HAVE TO ADDRESS THE ISSUE OF POLITICAL VIOLENCE CONSTITUTIONAL ISSUES WILL ALSO BE PROMINENT AS THE NATIONAL ASSEMBLY WILL BE DRAFTING A NEW CONSTITUTION WHAT'S AT STAKE A LOT SOUTH AFRICA'S TRANSITION ISN'T ONLY IMPORTANT IN ITSELF IT'S VIEWED BY MANY AS CRUCIAL FOR AFRICA IF THE NEW GOVERNMENT CAN BUILD ON THE SOLID FOUNDATIONS OF SOUTH AFRICA'S ECONOMY A REGIONAL POWERHOUSE COULD EMERGE LIFTING MUCH OF THE REGION OUT OF ITS CRISIS IF IT FAILS AFRICA COULD SLIDE FURTHER BEHIND THE REST OF THE WORLD 9404220168 940422 RETAILING BEER MAKERS FROTHING OVER PLAN TO CHARGE FOR RETAIL SHELF SPACE BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL THE BEER INDUSTRY IS UP IN ARMS OVER A FEDERAL PROPOSAL THAT WOULD ALLOW RETAILERS TO CHARGE ALCOHOLICBEVERAGE MAKERS FOR SHELF SPACE FOR THEIR PRODUCTS THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS WANTS TO LIFT A PROHIBITIONERA BAN ON THESE SLOTTING FEES FOR BEER WINE AND LIQUOR THE FEES COMMON ON MANY GROCERY PRODUCTS COULD GENERATE HUNDREDS OF MILLIONS OF DOLLARS FOR RETAILERS BEER COMPANIES VINTNERS AND THE DISTILLED SPIRITS COUNCIL OF THE US THE NATION'S LARGEST DISTILLERS TRADE GROUP OPPOSE THE MOVE THEY ARGUE IT WILL RAISE PRICES FURTHER CONSOLIDATE THE ALCOHOLICBEVERAGE INDUSTRY AND INCREASE LARGE RETAIL CHAINS' DOMINANCE IN THE BEVERAGE BUSINESS THE ECONOMIC POWER IS IN THE HANDS OF THE GROCERY CHAINS SAYS HENRY KING EXECUTIVE DIRECTOR OF THE BREWERS ASSOCIATION OF AMERICA WHICH REPRESENTS SMALL AND REGIONAL BREWERS THEY CAN INTIMIDATE US THE FEES WILL HURT MANY GROWING REGIONAL BREWERIES WHICH MAKE FEWER PRODUCTS AND SELL THEM IN FEWER STORES WE COULDN'T AFFORD NOT TO PAY THE SLOTTING FEES SAYS MARK BOZZINI PRESIDENT OF PETE'S BREWING CO PALO ALTO CALIF WE WANT TO COMPETE BUT WE WOULD QUIT DOING OTHER THINGS WE MIGHT NOT HIRE A SALES PERSON IN FLORIDA FOR EXAMPLE BECAUSE WE'D HAVE TO GIVE THAT 40000 TO PIGGLY WIGGLY THE NATIONAL GROCERS ASSOCIATION DIDN'T RETURN SEVERAL PHONE CALLS SEEKING COMMENT ON THE PROPOSAL A SPOKESMAN FOR SAFEWAY SAID THE SAN FRANCISCOBASED SUPERMARKET CHAIN WASN'T AWARE OF THE PROPOSAL OTHER GROCERS DIDN'T RETURN PHONE CALLS BUREAU OFFICIALS WHO REFUSED TO COMMENT ON WHETHER THEY RECEIVED PRESSURE FROM DISTILLERS AND GROCERS SAY THE CHANGE WAS PROMPTED BY SEVERAL RECENT COURT RULINGS SLOTTING FEES ARE A SIGNIFICANT SOURCE OF REVENUE FOR GROCERY STORES SAYS JESSE MEYERS PUBLISHER OF BEVERAGE DIGEST AN INDUSTRY NEWSLETTER MOST COMMON ARE FEES FOR NEW PRODUCTS OR FLAVORS AND FOR THE BEST LOCATIONS SUCH AS EYELEVEL SHELVES AND ENDOFAISLE DISPLAYS THE AMOUNTS SET BY THE RETAILER CAN BE HEFTY SOFTDRINK MAKERS PAY AS MUCH AS 25000 PER PACKAGE TYPE FOR INSTANCE SIX PACKS OR 15 LITER BOTTLES TO GUARANTEE SHELF SPACE FOR A NEW PRODUCT FOR UP TO A YEAR SAYS MR MEYERS AND THEN PAY MAINTENANCE FEES IN OTHER CASES GROCERS DEMAND TWO OR THREE CASES OF FREE PRODUCT PER FLAVOR FOR FIRSTTIME ACCESS TO SHELF SPACE BECAUSE OF THE COST ONLY COMPANIES WITH DEEP POCKETS CAN BUY SHELF SPACE SLOTTINGFEE OPPONENTS SAY COKE AND PEPSI CAN PAY FOR THE BEST SPACE RELEGATING OTHER SOFT DRINKS TO LOWER LESS ATTRACTIVE SHELVES OR PUSHING THEM OUT OF THE RETAIL SCENE ENTIRELY SAYS TOM WARD VICE PRESIDENTBEVERAGES FOR DOVE ASSOCIATES A BOSTON MANAGEMENT CONSULTING FIRM IF SLOTTING FEES ON BEER HAD BEEN PERMITTED OVER THE PAST DECADE HE SAYS THE BOOM IN MICROBREWERIES AND IMPORT BRANDS IN THE US NEVER WOULD HAVE HAPPENED LARGE BREWERS' CASH FLOW COULD EASILY COVER THE FEES' COSTS AND DISTILLERS HAVE HIGHER MARGINS SAYS MR WARD FURTHER DISTILLERS' MARKETING IS LIMITED BY RESTRICTIONS ON TV ADVERTISING SO IT MAKES MORE SENSE FOR THEM TO SPEND MONEY AT THE POINT OF SALE IT HAS ALWAYS BEEN TOUGH FOR LITTLE GUYS TO COMPETE SAYS EMANUEL GOLDMAN A BEVERAGE ANALYST AT PAINEWEBBER INC THERE ARE AN AWFUL LOT MORE DISADVANTAGES TO BEING SMALL THAN JUST SLOTTING FEES HE SAYS SMALL PLAYERS CAN STILL BE SUCCESSFUL HE SAYS POINTING TO SNAPPLE ICED TEAS WHICH HAVE SUCCEEDED DESPITE SHELF FEES BUT SNAPPLE NEGOTIATED AND GOT LOWER SHELFSPACE FEES BECAUSE OF HIGH CONSUMER DEMAND IT ALSO OFFERED RETAILERS A LARGE MARGIN ON PRODUCT SALES SAYS KEN TRAENKLE SNAPPLE BEVERAGE CORP'S NATIONAL SALES ADMINISTRATOR BUT NOW GROCERS ARE PRESSURING SNAPPLE TO PAY HIGHER FEES OUR COMPETITORS ARE PUTTING MORE MONEY ON THE TABLE AND THAT'S MAKING IT HARD FOR US MR TRAENKLE SAYS WHILE THE LARGEST BREWERS COULD SEE MARKET SHARE INCREASE WITH SLOTTING FEES THEY UNANIMOUSLY OPPOSE THEM WE ARE NOT WANTING TO SPEND DOLLARS THAT DON'T DO ANY WORK FOR US SAYS CHRIS MOORE VICE PRESIDENT SALES AT MILLER BREWING CO A UNIT OF PHILIP MORRIS COS ULTIMATELY THIS TAKES DOLLARS AWAY FROM OUR MARKETING EFFORTS FURTHER BIG BREWERS ARE WORRIED THAT THEIR POSITION COULD BE ERODED BY SINGLESERVE MIXED LIQUORS SUCH AS RUM AND COLA IN A CAN AND BY WINE COOLERS SAYS MARK RODMAN A CONSULTANT WITH BEVERAGE DISTRIBUTION CONSULTANTS OF BOSTON VINTNERS AND DISTILLERS WANT A BIGGER SHARE OF THE LOWALCOHOL BEVERAGE MARKET DOMINATED BY BEER HE SAYS BUT THEY HAVEN'T BEEN ABLE TO GET IT THROUGH TRADITIONAL COMPETITIVE MEANS SUCH AS ADVERTISING BECAUSE THEY HAVE MONEY TO BUY SHELF SPACE THEY COULD OVERCOME THOSE MARKETING SHORTCOMINGS HE ADDS SLOTTING FEES FOR ALCOHOL HAVE BEEN BANNED SINCE PROHIBITION IN AN EFFORT TO STEM THE REVIVAL OF TIED HOUSES OR RETAILERS THAT WERE BEHOLDEN TO BREWERS BEFORE PROHIBITION SUCH STRONG TIES LED TO CORRUPTION MONEYLAUNDERING AND ANTICOMPETITIVE BEHAVIOR OF ORGANIZED CRIME HARRY MCCABE CHIEF OF THE FEDERAL BUREAU'S MARKET COMPLIANCE BRANCH SAYS THE AGENCY DECIDED TO REWRITE THE RULES AFTER IT LOST THREE RELATED FEDERAL COURT DECISIONS IN THE MOST RECENT CASE A FEDERAL APPEALS COURT RULED THAT GIFTS AND OTHER INDUCEMENTS IN THIS INSTANCE A VIDEOCASSETTE RECORDER GIVEN TO RETAILERS BY ALCOHOL WHOLESALERS OR PRODUCERS AREN'T NECESSARILY ILLEGAL UNLESS IT CAN BE SHOWN THAT THE INDUCEMENT EXCLUDES OTHER PRODUCERS OR WHOLESALERS FROM THE RETAILER'S SHELVES AS A RESULT THE AGENCY REDEFINED WHAT PRACTICES IT BELIEVES EXCLUDE OTHER PRODUCERS FROM THE MARKET AND REVISED THE RULES' PROHIBITED TRADE PRACTICES SAYS MR MCCABE SLOTTING FEES WOULD BE ALLOWED PROVIDED THEY DON'T JEOPARDIZE THE RETAILER'S INDEPENDENCE THE RULES WILL BE PUBLISHED IN THE FEDERAL REGISTER WITHIN THE NEXT MONTH FOLLOWING A TREASURY DEPARTMENT'S REVIEW MR MCCABE SAYS THEY COULD BE ADOPTED 90 DAYS LATER AFTER A PUBLICCOMMENT PERIOD 9404220167 940422 TAXREFUND LOANS TEND TO ENCOURAGE FRAUD GAO SAYS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE GENERAL ACCOUNTING OFFICE SAID THAT LOANS MADE IN ANTICIPATION OF TAX REFUNDS FOSTER AN ENVIRONMENT CONDUCIVE TO FRAUD AND THAT THE TREND TOWARD MORE TAXREFUND FRAUD IS CONTINUING MOST BANKS MAKE THESE LOANS CALLED REFUNDANTICIPATION LOANS OR RALS TO TAXPAYERS WHO FILE THEIR RETURNS ELECTRONICALLY THEY ENABLE ELECTRONIC FILERS FOR A FEE TO GET THE MONEY DUE FROM A REFUND IN TWO OR THREE DAYS INSTEAD OF TWO OR THREE WEEKS MORE THAN 90 OF ELECTRONIC FILERS APPLIED FOR RALS IN 1993 THE GAO SAID IN A REPORT IN WHICH IT SUGGESTED THAT THE INTERNAL REVENUE SERVICE DISASSOCIATE ITSELF FROM THESE LOANS THE GAO ALSO SAID INTERIM RESULTS FROM THE 1994 TAXFILING SEASON INDICATED THAT FRAUD CONNECTED WITH TAX REFUNDS IS CONTINUING TO RISE AS OF FEB 28 1994 IRS HAD IDENTIFIED 9698 RETURNS INVOLVING FRAUDULENT REFUNDS 229 MORE THAN THE NUMBER THAT HAD BEEN IDENTIFIED AS OF THE SAME TIME IN 1993 THE CONGRESSIONAL WATCHDOG AGENCY SAID OF THE FRAUDULENT CASES IDENTIFIED THE GAO SAID 59 WERE ASSOCIATED WITH ELECTRONIC RETURNS EVEN THOUGH ONLY ABOUT 25 OF THE INDIVIDUAL INCOME TAX RETURNS RECEIVED BY THE IRS AS OF MARCH 4 1994 WERE FILED ELECTRONICALLY THE GAO SAID MOST OF THE IDENTIFIED FRAUD CASES INVOLVED RETURNS ON WHICH THE TAXPAYER WAS CLAIMING AN EARNED INCOME TAX CREDIT NOTING THAT RECENT LEGISLATIVE CHANGES EXPANDED ELIGIBILITY FOR THE EARNED INCOME TAX CREDIT AND EXPANDED THE MAXIMUM CREDIT AMOUNT THE GAO SAID THOSE CHANGES WILL FIRST AFFECT TAX RETURNS FILED IN 1995 AND COULD ENCOURAGE MORE ATTEMPTS TO DEFRAUD THE SYSTEM AS FOR REFUNDANTICIPATION LOANS THE GAO SAID THEY FOSTER AN ENVIRONMENT CONDUCIVE TO FRAUD BY SHORTENING THE TIME BETWEEN THE FILING OF A FRAUDULENT ELECTRONIC RETURN AND THE RECEIPT OF THE FINANCIAL PAYOFF FOR THAT ACT THE PROCESS OF OBTAINING A RAL INCLUDES A STEP IN WHICH THE IRS INFORMS AN ELECTRONIC TAX PREPARER THROUGH A DIRECT DEPOSIT INDICATORS WHETHER IT WILL DEPOSIT THE REFUND DIRECTLY IN THE TAXPAYER'S BANK ACCOUNT THE IRS TWO YEARS AGO IN A STEP TO DISASSOCIATE ITSELF FROM RALS SAID IT WOULD DISCONTINUE ISSUING THESE DIRECTDEPOSIT INDICTORS BUT IT LATER REVERSED ITS DECISION AND NOW IS PROPOSING TO CHARGE A FEE OF 8 FOR EACH INDICATOR PROVIDED THE GAO SUGGESTED THAT THE IRS GO BACK TO ITS INITIAL PROPOSAL OF DOING AWAY WITH THE DIRECTDEPOSIT INDICATOR INSTEAD OF CHARGING A FEE 9404220166 940422 CZECH REPUBLIC'S RAPID PRIVATIZATION HAS INVESTORS LOOKING FOR BARGAINS BY NEIL KING JR SPECIAL TO THE WALL STREET JOURNAL PRAGUE NOWHERE ARE COMMUNIST FREE MARKETEERS DISMANTLING STATE CONTROL OF INDUSTRY FASTER THAN IN THE CZECH REPUBLIC WHERE BY AUTUMN PRIVATE INVESTORS WILL HAVE A STAKE IN AT LEAST TWOTHIRDS OF THE NATION'S CORPORATIONS THE PARADOX HERE IS THAT PRIME MINISTER VACLAV KLAUS HAS DONE WHAT THE COMMUNISTS COULD ONLY DREAM OF TURN THE COUNTRY'S ASSETS OVER TO THE PEOPLE MANY WHO PARTICIPATED IN THE FIRST CZECH PRIVATIZATION WAVE AND NEARLY EVERYONE DID HAVE PROFITED HANDSOMELY IN RECENT MONTHS AS SHARES ON THE PRAGUE BOURSE SHOT SKYWARD CZECH ADULTS COULD BUY INTO THE SELLOFF FOR THE EQUIVALENT OF A MERE 35 AND THE LUCKIEST AMONG THEM NOW OWN SHARES VALUED AT 10000 EVEN THE AVERAGE HOLDING WEIGHS IN AT ABOUT 1000 SO IT'S NO SURPRISE THAT STILL MORE CZECHS MORE THAN SIX MILLION ALL TOLD HAVE SIGNED UP FOR THE LAST BIG CORPORATE AUCTION THE FIRST BIDDING ROUND OF WHICH BEGAN APRIL 11 BIDDING POINTS OR VOUCHERS ARE A HOT COMMODITY THESE DAYS SO HOT THAT THE COUNTRY'S 440 INVESTMENT FUNDS HAVE SPENT ABOUT 50 MILLION ON ADVERTISING TO LURE INVESTORS THEIR WAY THE FIRST WAVE ENDED LAST YEAR WITH THE DISTRIBUTION OF SHARES IN NEARLY 1000 COMPANIES INCLUDING THE BIG CZECH BANKS INDUSTRIAL CONCERNS BREWERIES AND HOTELS FAR FEWER OBVIOUS GEMS STAND OUT AMONG THE 861 COMPANIES ON THE BLOCK THIS TIME BUT THAT HASN'T KEPT PEOPLE FROM DREAMING OF ANOTHER MASS ENRICHMENT WHEN SHARES REACH THE STOCK EXCHANGE THE QUALITY OF THIS WAVE IS DEFINITELY LOWER THAN THE FIRST BUT IT WILL STILL BE POSSIBLE TO MAKE A LOT OF MONEY IF YOU'RE SMART SAYS JAN MARTASEK CENTRAL EUROPEAN DIRECTOR FOR THE WASHINGTON DCBASED PLANECON CAPITAL GROUP THE PROCESS THIS TIME IS A LOT MORE SOPHISTICATED THERE'S MORE AND BETTER FINANCIAL INFORMATION LOCAL ANALYSTS HAVE A STRONGER SENSE OF WHAT TO LOOK FOR AND WHAT TO IGNORE SO BIDDING STRATEGIES ARE SURE TO BE LESS SCATTERSHOT YET EVEN THE BEST FIRMS FOR ALL THEIR ANALYSTS AND DATA CONCEDE THAT MAKING PERFECTLY SOUND CHOICES WON'T BE EASY THIS TIME AROUND I'D SAY IT'S MORE A SHOT IN THE TWILIGHT THAN A SHOT IN THE DARK SAYS GEORGE COLLINS FUND MANAGER AT THE PRAGUE OFFICE OF CS FIRST BOSTON THE TROUBLE ISN'T IN IDENTIFYING THE BEST COMPANIES EVERYONE FOR INSTANCE WOULD LIKE A NICE CHUNK OF THE OFFERED 26 OF SPT TELECOM THE TELEPHONE MONOPOLY NOR WOULD MANY PASS UP A SLICE OF THE 4 OF CEZ THE HUGE ENERGY SUPPLIER WHOSE SHARE PRICE FROM THE FIRST WAVE HAS QUADRUPLED SINCE AUGUST OTHERS ON THE SUREBET LIST INCLUDE THE COUNTRY'S TWO OIL REFINERIES CHEMOPETROL AND KAUCUK KRALUPY KAROSA A BUS AND TRUCK MAKER ALREADY PARTIALLY OWNED BY FRANCE'S RENAULT SA LACHEMA A LUCRATIVE CHEMICAL COMPANY AND KABLO KLADNO A CABLE MAKER THAT RACKED UP 72 MILLION IN PROFIT LAST YEAR NO THE TRICK IS IN THE PRICE AND THAT COMES DOWN TO THE BIDDING IF EVERYONE RUSHES INTO THE FIRST BIDDING ROUND TO THROW VOUCHER POINTS BEHIND SPT TELECOM AS IS LIKELY THE STARTING PRICE WILL GO UP AND THE SHARES WILL ROLL OVER TO THE NEXT ROUND AND SO ON UNTIL THE PRICE IS AT A LEVEL WITH DEMAND BUT EXTREME DEMAND FOR A HANDFUL OF SHARES MEANS OTHER COMPANIES WILL BE PASSED OVER SO AS ANALYSTS ACROSS THE COUNTRY CRUNCH NUMBERS AND PLAY COMPLEX MATH GAMES ON THEIR COMPUTERS OTHERS GO SCOURING THE LAND FOR BARGAINS THE MOST FERTILE REALM HERE IS THE UTILITIES DOZENS OF REGIONAL ELECTRICITY SUPPLIERS AND HEATING COMPANIES ARE UP FOR GRABS AS ARE NEARLY 50 WATERWORKS HIDDEN AMONG THEM ANALYSTS SAY ARE A SLEW OF STRONG COMPANIES THAT WILL SHOW STEADY RETURNS WELL INTO THE NEXT CENTURY BY SHEER BULK THE PRIZE IN THIS WAVE HAS TO GO TO THE MINING INDUSTRY WHOSE TOTAL REVENUE ACCOUNTS FOR NEARLY 18 OF ALL THE COMPANIES UP FOR SALE THOSE WHO THINK THAT MINING ESPECIALLY COAL MINING IS A DYING INDUSTRY IN EUROPE MIGHT WANT TO THINK AGAIN ALL BUT ONE OF THE SIX BIGGEST COAL MINES BEING SOLD THIS SPRING SHOWED A PROFIT LAST YEAR AND THE BIGGEST MOSTECKA MADE 55 MILLION ON SALES OF 413 MILLION THE MINING INDUSTRY HERE HAS TO EXIST BECAUSE NEARLY ALL THE ELECTRICITY COMES FROM COAL SAYS PLANECON'S MR MARTASEK AND A FEW OF THESE MINES ARE ALMOST CERTAIN TO GIVE EXTRAORDINARY RETURNS FOR FOREIGN INVESTORS WHO CAN'T PARTICIPATE IN THE VOUCHER PROGRAM ITSELF THE REAL EXCITEMENT WILL COME IN THE AUTUMN WHEN SHARES IN THE NEWLY PRIVATIZED COMPANIES BECOME TRADABLE SO WILL THE MARKET SKYROCKET AS IT DID LAST AUTUMN WHEN SOME SHARE PRICES TRIPLED PROBABLY NOT SAY THE EXPERTS THE PRAGUE MARKET HAS MATURED QUICKLY AND IS ALREADY MOVING BEYOND THE HEDGEFUND PHASE TO LURE LONGERTERM INVESTORS SUCH AS THE BIG PENSION FUNDS AND INTO THAT MORE SOBER ATMOSPHERE THE LESS SEXY SECONDWAVE COMPANIES SHOULD FIT QUITE WELL 9404220165 940422 WHO'S NEWS DIED JOHN T JONES JR 76 YEARS OLD FORMER CHAIRMAN OF TEXAS COMMERCE BANK AS WELL AS FORMER PRESIDENT AND PUBLISHER OF THE HOUSTON CHRONICLE YESTERDAY IN HOUSTON OF CANCER 9404220164 940422 BUSINESS BRIEF IDB COMMUNICATIONS AGREES TO ACQUISITION OF PEOPLES TELEPHONE LOS ANGELES IDB COMMUNICATIONS GROUP INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE PEOPLES TELEPHONE CO IN A STOCK SWAP VALUED AT UP TO 312 MILLION SHAREHOLDERS OF MIAMIBASED PEOPLES AN INDEPENDENT OPERATOR OF PUBLIC PAY TELEPHONES WILL RECEIVE 11 SHARES OF IDB COMMON FOR EACH PEOPLES SHARE THEY HOLD PEOPLES HAS 158 MILLION COMMON SHARES OUTSTANDING WITH AN ADDITIONAL 31 MILLION SHARES ISSUABLE UPON THE EXERCISE OF OUTSTANDING WARRANTS AND OPTIONS IF ALL ARE EXERCISED A TOTAL OF 208 MILLION IDB SHARES WOULD BE ISSUED IN THE SWAP ON THE NASDAQ STOCK MARKET YESTERDAY IDB SHARES FELL 50 CENTS TO 15 WHILE PEOPLES SHARES SURGED 3125 OR 32 TO 12875 IDB THE NATION'S FOURTHLARGEST INTERNATIONAL LONGDISTANCE CARRIER WITH 1993 REVENUE OF 3107 MILLION SAID THE ACQUISITION WILL ALLOW IT TO INCREASE ITS PRESENCE DOMESTICALLY PEOPLES WHICH HAD 1993 REVENUE OF 1218 MILLION HAS AN INSTALLED BASE OF 50000 PAY TELEPHONES IN 46 STATES AND GENERATES MORE THAN 500 MILLION MINUTES OF LONG DISTANCE TRAFFIC A YEAR THEY ARE ALSO IN A NUMBER OF NICHES WE SEE OURSELVES EVOLVING INTO SAID IDB PRESIDENT EDWARD R CHERAMY IN RECENT YEARS PEOPLES HAS EXPANDED ITS BUSINESS TO INCLUDING CORRECTIONALFACILITY TELEPHONES CELLULARTELEPHONE RENTALS AND PREPAID CALLING CARDS IDB SAID IT EXPECTS THE TRANSACTION TO BE COMPLETED BY THE END OF THE YEAR PENDING REGULATORY AND SHAREHOLDER APPROVALS 9404220163 940422 INTERNATIONAL GERMAN AUTHORITIES RAID SCHNEIDER'S HOMES OFFICES FRANKFURT GERMAN AUTHORITIES SWEPT INTO OFFICES AND HOMES OF MISSING GERMAN PROPERTY MAGNATE JUERGEN SCHNEIDER AND HIS FAMILY YESTERDAY MORNING ESCALATING THE INVESTIGATION INTO FRAUD ALLEGATIONS AGAINST HIM THE FRANKFURT PROSECUTOR'S OFFICE ALSO SAID THAT IT CURRENTLY ISN'T INVESTIGATING DEUTSCHE BANK AG MR SCHNEIDER'S LEAD UNDERWRITER OR OTHER CREDITOR BANKS IN CONNECTION WITH THE BANKRUPTCY OF HIS PROPERTY EMPIRE EARLIER PROSECUTORS HAD SAID THEY WOULDN'T RULE OUT AN INVESTIGATION OF BANK EMPLOYEES MR SCHNEIDER DISAPPEARED EARLIER THIS MONTH AFTER APPARENTLY RUNNING INTO FINANCIAL DIFFICULTY THE DEVELOPER LEFT BEHIND 296 BILLION IN BANK DEBT 250 MILLION IN UNPAID CONTRACTOR PAYMENTS AND THOUSANDS OF BUILDING WORKERS WORRIED ABOUT THEIR JOBS THE GERMAN ECONOMICS MINISTRY HAS CONFIRMED THAT IT IS PREPARING A CONFIDENTIAL REPORT TO BE PRESENTED AT A CABINET MEETING NEXT WEEK IN WHICH MR SCHNEIDER'S 40 BANK CREDITORS WERE DESCRIBED AS FACING A POSSIBLE LOSS OF 17 BILLION MARKS PROSECUTORS SAID INVESTIGATORS APPEARED SIMULTANEOUSLY AT MR SCHNEIDER'S BUSINESSES HIS TAX ADVISER'S OFFICE AND THE HOMES OF MR SCHNEIDER'S RELATIVES THEY WOULDN'T DISCLOSE THE RESULTS OF THEIR SEARCHES 9404220162 940422 CORPORATE FOCUS FORD'S TROTMAN GAMBLES ON GLOBAL RESTRUCTURING PLAN NEW CHAIRMAN SEEKS TO STREAMLINE VEHICLE BUSINESS SLASH COSTS BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DEARBORN MICH FORD MOTOR CO IS LAUNCHING A SWEEPING RESTRUCTURING OF ITS 92 BILLION WORLDWIDE VEHICLE BUSINESS GAMBLING THAT THE REWARDS OF EXPLOITING GLOBAL REACH WILL OUTWEIGH THE RISKS OF ORGANIZATIONAL UPHEAVAL CHAIRMAN ALEX TROTMAN MOVING TO PUT HIS STAMP ON THE NO 2 AUTO MAKER SAID FORD WILL COMBINE ITS NORTH AMERICAN AND EUROPEAN AUTO OPERATIONS INTO A SINGLE GROUP AND LAUNCH A CAMPAIGN TO CUT PURCHASING AND PRODUCTDEVELOPMENT COSTS MR TROTMAN SAID HE WANTS TO SLASH FORD'S ANNUAL OPERATING COSTS BY 2 BILLION TO 3 BILLION A YEAR BY THE END OF THE 1990S MR TROTMAN WHO BECAME FORD'S CHAIRMAN AND CHIEF EXECUTIVE NOV 1 IS BETTING THE COMPANY'S FUTURE ON THE PROPOSITION THAT IT MUST GO GLOBAL AND SELL ESSENTIALLY THE SAME VEHICLES AROUND THE WORLD IN THAT EFFORT FORD WILL PUSH THE LIMITS OF COMPUTER AND COMMUNICATIONS TECHNOLOGY AS WELL AS MANAGEMENT EXPERTISE IN AN ATTEMPT TO CREATE FIVE PRODUCTDEVELOPMENT TEAMS ENCOMPASSING ENGINEERS AND EXECUTIVES ON BOTH SIDES OF THE ATLANTIC MR TROTMAN SAID THE BIGGEST SINGLE CONTRIBUTOR TO COST REDUCTION WILL BE PURCHASING WHERE FORD SPENDS 37 BILLION A YEAR MR TROTMAN SAID FORD WILL SCOUR THE WORLD LOOKING TO BUY MORE COMMON PARTS FROM FEWER SUPPLIERS AT LOWER PRICES THE NEW CHAIRMAN'S RESTRUCTURING COMES AFTER NEARLY A YEAR OF INTERNAL DEBATE AMONG FORD'S TOP EXECUTIVES DURING WHICH THE AUTO MAKER SIZED ITSELF UP AGAINST RIVALS SUCH AS TOYOTA MOTOR CORP AND GENERAL MOTORS CORP MR TROTMAN EGGED THE PROCESS ON BY RAILING AGAINST THE OVERLAPPING PRODUCTS AND DUPLICATION OF ENGINEERING EFFORT ENDEMIC TO FORD'S OLD SYSTEM IN WHICH NORTH AMERICA AND EUROPE FUNCTIONED AS SELFCONTAINED UNITS WITH SEPARATE SETS OF VEHICLES ENGINES AND COMPONENTS BUT MR TROTMAN'S CRUSADE TO MAKE FORD MORE GLOBAL HAS ITS RISKS GM'S MASSIVE 1984 REORGANIZATION OF ITS DOMESTIC VEHICLE OPERATIONS RESULTED IN MANAGEMENT CHAOS THAT BOGGED DOWN THE COMPANY'S PRODUCTDEVELOPMENT EFFORTS FOR SEVERAL YEARS GM RESTRUCTURED ITS NORTH AMERICAN ENGINEERING OPERATIONS AGAIN IN 1992 AND GM PRESIDENT JOHN F SMITH JR CONCEDED LAST NOVEMBER THAT IT HAD TAKEN NEARLY A YEAR TO IRON OUT THE LESS SEVERE ORGANIZATIONAL CONFLICTS THAT RESULTED IF THEY CAN EXECUTE THEY CAN BE REALLY POWERFUL SAID PAINEWEBBER INC ANALYST STEPHEN GIRSKY THE QUESTION IS CAN THEY EXECUTE WE KNOW FROM GM THAT IT'S EASIER SAID THAN DONE MR TROTMAN VOWED THAT FORD WON'T REPEAT GM'S MISTAKES WE'VE DONE AN AWFUL LOT OF BENCHMARKING ON HOW NOT TO DO THINGS HE SAID FORD PICKED EDWARD E HAGENLOCKER A SOFTSPOKEN 54YEAROLD EXECUTIVE WHO CURRENTLY RUNS FORD'S NORTH AMERICAN OPERATIONS TO BE PRESIDENT OF ITS NEW WORLDWIDE AUTO OPERATIONS IN ANOTHER KEY MOVE FORD NAMED AN AGGRESSIVE 46YEAROLD COST CUTTER FORD OF EUROPE CHAIRMAN JACQUES A NASSER TO BE GROUP VICE PRESIDENT IN CHARGE OF WORLDWIDE PRODUCTDEVELOPMENT OPERATIONS CARLOS E MAZZORIN 52 WILL HEAD FORD'S WORLDWIDE PRODUCTION PURCHASING OPERATIONS WHICH WILL REPLACE REGIONAL PURCHASING OPERATIONS THAT HANDLED ACQUISITION OF VEHICLE PARTS PEOPLE AT PURCHASING HAVE BEEN WARGAMING FOR MONTHS AS TO WHAT WE THINK THE CARROT IS FROM GLOBALIZATION OF OUR BUSINESS MR TROTMAN SAID IN AN INTERVIEW YESTERDAY FROM COMMONIZATION OF PARTS AND FROM LARGER BUYS THAT WILL GIVE US GREATER LEVERAGE WITH OUR SUPPLIERS THAT WILL LIKELY TRANSLATE INTO TOUGH GOING FOR MANY FORD SUPPLIERS AT GM THE WORLDWIDE PURCHASING STRATEGY INITIATED UNDER FORMER PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA HAS MEANT BRUTAL COMPETITION AND SHARPLY CURTAILED PROFIT MARGINS FOR PARTS AND EQUIPMENT VENDORS JEFFREY SINCLAIR HEAD OF MCKINSEY & CO'S AUTOMOTIVE CONSULTING PRACTICE PREDICTED FORD'S MOVE WON'T CREATE THE SORT OF TURMOIL SEEN AT GM FORD IS ALREADY MORE GLOBAL IN THE WAY THEY MANAGE THEIR SUPPLIER BASE THAN GM HE SAID ONE OF THE BIGGEST CHALLENGES WILL CONFRONT MR NASSER WHOSE NEW JOB WILL BE TO GET FORD'S PRODUCTDEVELOPMENT SPENDING UNDER CONTROL MR NASSER HAS SPENT THE PAST 16 MONTHS HACKING AWAY AT BLOATED COSTS IN FORD'S EUROPEAN OPERATIONS MR NASSER A NATIVE OF LEBANON WHO HOLDS AUSTRALIAN CITIZENSHIP WILL NOW ATTACK FORD'S MOST VEXING PROBLEM WHILE THE COMPANY'S ASSEMBLY PLANTS ARE ALMOST AS EFFICIENT AS THE BEST JAPANESE FACTORIES ITS HIGH PRODUCTDEVELOPMENT SPENDING IN RECENT YEARS HAS HURT FINANCIAL RESULTS UNTIL NOW FORD HAS OPERATED LARGELY SEPARATE VEHICLE ENGINEERING ORGANIZATIONS IN NORTH AMERICA AND EUROPE INDEED FORD HAS TWO PRODUCTENGINEERING CENTERS IN EUROPE UNDER THE NEW STRUCTURE FORD WILL MAINTAIN THE TWO EUROPEAN ENGINEERING CENTERS BUT MERGE THEM INTO A SINGLE PROGRAM CENTER DEVOTED TO DESIGNING SMALL FRONTDRIVE CARS MIDSIZE AND LARGER CARS AS WELL AS VANS AND TRUCKS WILL BE DEVELOPED BY FOUR NEW PROGRAM CENTERS IN DEARBORN MR TROTMAN NAMED WILLIAM CLAY FORD JR THE 36YEAROLD GREATGRANDSON OF COMPANY FOUNDER HENRY FORD VICE PRESIDENT IN CHARGE OF THE COMMERCIAL USE VEHICLE PROGRAM CENTER THE PROGRAM CENTERS WILL MARRY TEAMS OF ENGINEERS FROM VARIOUS DISCIPLINES WHO WILL WORK TO SPEED NEWVEHICLE DEVELOPMENT ONE MODEL MR TROTMAN HAS CITED IN THE PAST IS THE TEAM THAT DEVELOPED THE 1994 MUSTANG IN JUST THREE YEARS ABOUT ONE YEAR LESS THAN A TYPICAL FORD PROGRAM MR HAGENLOCKER WANTS TO USE FORD'S HEAVY INVESTMENTS IN HIGHPOWERED COMPUTERS TO SLASH DESIGN COSTS FORD WILL EXPAND ITS USE OF COMPUTER SIMULATIONS TO TEST VEHICLE DESIGNS THUS REDUCING THE NUMBER OF COSTLY HANDBUILT PROTOTYPES ANOTHER KEY TO COSTCUTTING WILL BE TO CARRY OVER MORE PARTS FROM ONE MODEL TO ANOTHER AS JAPANESE AUTO MAKERS OFTEN DO THE RISK TO FORD'S NEW WORLDCAR STRATEGY HOWEVER IS THAT VEHICLES WON'T COST LESS TO DEVELOP FORD'S PREVIOUS EFFORTS TO DEVELOP WORLD CARS HAVE HAD MIXED RESULTS MR TROTMAN HELD UP AS AN EXAMPLE THE PROGRAM TO DEVELOP A NEW LINE OF COMPACT CARS AND ENGINES THAT WOULD SELL IN EUROPE AS THE MONDEO AND IN NORTH AMERICA AS THE FORD CONTOUR AND MERCURY MYSTIQUE BUT THE JOINT EUROPEANAMERICAN PROGRAM COST A WHOPPING 6 BILLION AND THE US MODELS WON'T HIT THE MARKET UNTIL THIS SUMMER MORE THAN A YEAR AFTER THE MONDEO DEBUTED IN EUROPE ONE REASON FOR THE DELAY IS THAT FORD'S US MARKETING EXECUTIVES SAID THE STYLING PRODUCED BY FORD OF EUROPE WOULDN'T APPEAL TO US CONSUMERS OFFICIALS SAY THE RESULT THE EUROPEAN MONDEO LOOKS DIFFERENT FROM ITS AMERICAN COUSINS FORD EXECUTIVES SAY THEY LEARNED FROM THE MONDEO PROGRAM AND THAT THE COMPANY WILL SPEND FAR LESS ON FUTURE WORLD CARS AND WILL LAUNCH NEW MODELS IN DIFFERENT MARKETS WITHIN WEEKS OF EACH OTHER EDWARD E HAGENLOCKER 54 PRESIDENT FORD AUTOMOTIVE OPERATIONS WILL LEAD CONSOLIDATION OF FORD'S NORTH AMERICAN AND EUROPEAN VEHICLE OPERATIONS HAGENLOCKER ALSO TAKES CHARGE OF FORD'S EFFORT TO CUT PURCHASING COSTS WORLDWIDE JACQUES A NASSER 46 GROUP VICE PRESIDENT PRODUCT DEVELOPMENT FORMER HEAD OF FORD OF EUROPE TAKES ON TASK OF CUTTING FORD'S VEHICLE DEVELOPMENT COSTS WILL LEAD DEVELOPMENT OF WORLD CARS AT FIVE VEHICLE PROGRAM CENTERS IN EUROPE AND DEARBORN MICH ROBERT L REWEY 55 GROUP VICE PRESIDENT MARKETING AND SALES WILL OVERSEE SALES AND MARKETING OPERATIONS IN EUROPE AND NORTH AMERICA AS WELL AS JAGUAR CARS LTD ROBERT H TRANSOU 54 GROUP VICE PRESIDENT MANUFACTURING TRANSOU A KEY ARCHITECT OF FORD'S NEW STRUCTURE WILL LEAD CONSOLIDATION OF ENGINE AND TRANSMISSION OPERATIONS AUTOMOTIVE PARTS OPERATIONS AND MANUFACTURING OPERATIONS ALBERT CASPERS 61 CHAIRMAN FORD OF EUROPE FORMERLY HEAD OF FORD'S GERMAN OPERATIONS HE WILL TAKE CHARGE OF FORD'S UNPROFITABLE EUROPEAN OPERATIONS DURING TRANSITION TO WORLDWIDE VEHICLE OPERATIONS MANAGEMENT STRUCTURE 9404220161 940422 DIVIDEND NEWS FIRSTFEDERAL FINANCIAL SERVICES CORP FIRSTFEDERAL FINANCIAL SERVICES CORP SAID ITS DIRECTORS APPROVED A 5FOR4 STOCK SPLIT AND A 25 DIVIDEND INCREASE SHAREHOLDERS WILL GET ON MAY 20 ONE NEW SHARE FOR EACH FOUR SHARES OWNED AS OF THE MAY 2 RECORD DATE THE WOOSTER OHIO SAVINGS AND LOAN COMPANY ALSO BOOSTED ITS QUARTERLY DIVIDEND TO 15 CENTS A SHARE FROM 12 CENTS PAYABLE MAY 20 TO SHARES OF RECORD MAY 2 AFTER THE SPLIT THE EQUIVALENT CASH DIVIDEND WILL BE 12 CENTS A SHARE WHEN THE SPLIT IS COMPLETED THE NUMBER OF COMMON SHARES OUTSTANDING WILL RISE TO 2704000 FROM 2163511 ON MARCH 31 THE COMPANY SAID 9404220160 940422 TECHNOLOGY FIRSTPERIOD PROFITS AT BELLSOUTH NYNEX AND SOUTHWESTERN BELL TOP ESTIMATES BY LESLIE CAULEY AND GAUTAM NAIK STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THREE BABY BELL TELEPHONE COMPANIES SOUTHWESTERN BELL BELLSOUTH AND NYNEX REPORTED BETTERTHANEXPECTED EARNINGS FOR THE FIRST QUARTER BUOYED MOSTLY BY STRONG REGIONAL ECONOMIES AND STRONG GROWTH IN CELLULAR BUSINESSES SOUTHWESTERN BELL CORP SAN ANTONIO REPORTED RECORD EARNINGS OF 3577 MILLION OR 59 CENTS A SHARE COMPARED WITH 3025 MILLION OR 50 CENTS A SHARE A YEAR AGO BEFORE ONETIME ACCOUNTING CHARGES WHICH RESULTED IN A NET LOSS OF 19 BILLION OR 319 A SHARE REVENUE ROSE 77 TO 264 BILLION FROM 245 BILLION BELLSOUTH CORP BENEFITING FROM STRONG PHONELINE GROWTH IN ITS COVETED TERRITORY OF THE BOOMING SOUTHEAST POSTED A 77 RISE IN QUARTERLY REVENUE TO 412 BILLION FROM 383 BILLION A YEAR EARLIER ITS CELLULAR BUSINESS FARED ESPECIALLY WELL WITH A 41 REVENUE INCREASE FIRSTQUARTER NET INCOME SOARED TO 5853 MILLION OR 118 A SHARE A RECORD FOR THE ATLANTABASED BABY BELL A YEAR AGO BELLSOUTH'S NET WAS 3438 MILLION OR 69 CENTS A SHARE WHICH INCLUDED A 674 MILLION ACCOUNTING CHARGE NYNEX CORP WHICH USUALLY TRAILS THE PACK IN FINANCIAL PERFORMANCE IN PART BECAUSE OF ITS DIFFICULT NORTHEASTERN SERVICE REGION FARED LESS WELL REVENUE FELL SLIGHTLY TO 327 BILLION FROM 332 BILLION BECAUSE OF A 78 MILLION RATE ROLLBACK IN THE QUARTER IMPOSED BY NEW YORK STATE THE WHITE PLAINSBASED BABY BELL REPORTED NET INCOME OF 2906 MILLION FOR THE FIRST QUARTER OR 70 CENTS A SHARE UP SHARPLY FROM 2076 MILLION OR 50 CENTS A SHARE A YEAR AGO BUT NET WOULD HAVE FALLEN ABOUT 12 EXCLUDING A YEARAGO ACCOUNTING CHARGE THAT REDUCED EARNINGS BY 1235 MILLION OR 30 CENTS A SHARE YEARAGO PERSHARE RESULTS WERE RESTATED TO REFLECT A 2FOR1 COMMON STOCK SPLIT NYNEX HARD HIT IN RECENT YEARS BY A DEPRESSED ECONOMY IN THE NORTHEAST REPORTED 3 GROWTH IN ACCESS LINES FOR THE QUARTER THAT WAS MODEST BY INDUSTRY STANDARDS BUT DECENT FOR THEM SAID JACK B GRUBMAN AN ANALYST AT SALOMON BROS IN NEW YORK WHILE FIRSTQUARTER RESULTS LOOKED ROSY FOR MOST OF THE BELLS THIS WEEK SOME LOOMING ISSUES COULD PROFOUNDLY AFFECT THEIR LONGTERM EARNINGS POTENTIAL THEY MUST FIGURE OUT HOW TO GROW AND DIVERSIFY AS THE MAINSTAY OF THEIR ENVIABLE REVENUE STREAMS LOCAL PHONE SERVICE SLOWS DOWN THE AVERAGE GROWTH IN ACCESS LINES FOR THE SEVEN BELLS IS JUST 25 THE BOTTOM LINE IS THESE GUYS ARE STILL GROWING AT A MODEST RATE SAID MR GRUBMAN EVEN MODEST GROWTH IS AT RISK INDEED THE BELLS ARE CURRENTLY FACED WITH THE THREAT OF COMPETITION FOR THEIR COVETED TELEPHONE CUSTOMERS FROM CABLE COMPANIES AND PREDATORY BELLS ON THE HUNT FOR NEW BUSINESS OUTSIDE THEIR HOME TURFS WHILE ALL ARE LOOKING FOR WAYS TO PROTECT THEIR FLANKS AND DEVELOP NEW LINES OF BUSINESS WITH NEW PARTNERS INCLUDING CABLE COMPANIES SEVERAL OF THOSE PARTNERING ARRANGEMENTS HAVE FAILED ADDITIONALLY BELL EFFORTS TO DIVERSIFY INTO OTHER LINES OF BUSINESS OUTSIDE THEIR CORE TELEPHONE BUSINESS HAVE LARGELY FAILED IT REMAINS TO BE SEEN WHETHER THE COMPANIES' EFFORTS TO BUILD INTERACTIVE VIDEO NETWORKS WILL BE A SUCCESS WITH CUSTOMERS 9404220159 940422 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION MIDSTATES PLC AN INITIAL OFFERING OF 18 MILLION AMERICAN DEPOSITARY SHARES EACH ADS REPRESENTING EIGHT ORDINARY SHARES AT AN ANTICIPATED 1050 TO 12 A SHARE WITH AN OVERALLOTMENT OPTION FOR 270000 ADDITIONAL SHARES VIA RAYMOND JAMES & ASSOCIATES INC AND EQUITABLE SECURITIES CORP PRIME MULTIFAMILY INC A PROPOSED INITIAL OFFERING OF 2492000 SERIES A CUMULATIVE PARTICIPATING CONVERTIBLE PREFERRED SHARES WITH A LIQUIDATION PREFERENCE OF 25 A SHARE AND 1630000 COMMON SHARES AT AN EXPECTED 19 TO 21 A SHARE WITH AN OVERALLOTMENT OPTION FOR AN ADDITIONAL 373000 PREFERRED SHARES AND 244500 COMMON SHARES VIA FRIEDMAN BILLINGS RAMSEY & CO AND NOMURA SECURITIES INTERNATIONAL INC SMITH BARNEY SHEARSON HOLDINGS INC A UNIT OF TRAVELERS INC AN OFFERING OF 800 MILLION OF DEBT SECURITIES TRUMP TAJ MAHAL FINANCE CO AN OFFERING OF 125 MILLION OF DISCOUNT NOTES AND WARRANTS TO PURCHASE NOTES IN UNITS CONSISTING OF 5000 OF SENIOR SECURED DISCOUNT NOTES DUE 2006 AND ONE WARRANT TO ACQUIRE 1000 OF DISCOUNT NOTES VIA BT SECURITIES CORP AND PRUDENTIAL SECURITIES INC 9404220158 940422 ECONOMY FASB IS LIKELY TO POSTPONE REQUIRING STOCKOPTION DEDUCTION FROM EARNINGS BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL THE FINANCIAL ACCOUNTING STANDARDS BOARD IS LIKELY TO POSTPONE UNTIL AT LEAST NEXT YEAR A CONTROVERSIAL PROPOSAL THAT WOULD REQUIRE COMPANIES TO DEDUCT THE COST OF EMPLOYEE STOCK OPTIONS FROM EARNINGS THE FASB THE CHIEF RULEMAKING BODY FOR ACCOUNTANTS PROPOSED LAST YEAR THAT COMPANIES TREAT EMPLOYEE STOCK OPTIONS AS OTHER CORPORATE EXPENSES AND CHARGE THE COST OF THE PLANS AGAINST EARNINGS DESPITE RECEIVING A STORM OF CRITICISM OVER ITS PROPOSAL PARTICULARLY FROM HIGHTECHNOLOGY COMPANIES THAT USE STOCK OPTIONS TO ATTRACT AND RETAIN EXECUTIVE TALENT THE FASB SAID IT WOULD ISSUE RULES RELATED TO THE OPTIONS LATE THIS YEAR BUT AT A ROUNDTABLE MEETING AT FASB HEADQUARTERS EARLIER THIS WEEK IN NORWALK CONN IT BECAME EVIDENT THAT THE BOARD WON'T MEET THAT TIMETABLE TWENTYONE PARTICIPANTS INCLUDING FOUR COMPANIES ONE ACCOUNTING FIRM AND ONE BENEFITS CONSULTING FIRM SUGGESTED A WIDE RANGE OF CHANGES IN THE FASB'S PROPOSAL ALTHOUGH FASB OFFICIALS SAY THEY REMAIN COMMITTED TO CHANGING THE WAY COMPANIES ACCOUNT FOR STOCK OPTIONS THEY INDICATED THAT THEY NEED MORE TIME TO REDELIBERATE AND RECONSIDER ALTERNATIVE IDEAS SAID ELIZABETH FENDER AN ASSISTANT PROJECT MANAGER FOR THE FASB AS A RESULT THE NEW DELIBERATIONS ARE LIKELY TO SLOW THE FASB'S ISSUANCE OF A FINAL RULE ON OPTIONS SOME ROUNDTABLE PARTICIPANTS SAID THE FASB'S CURRENT PROPOSAL WOULD PRICE STOCK OPTIONS BASED ON HOW LONG THEY ARE TYPICALLY HELD A LESS COSTLY APPROACH THAN PRICING THEM BASED ON AN OPTION'S FULL TERM TYPICALLY 10 YEARS CERTAIN PARTICIPANTS AT THE ROUNDTABLE FAVORED A BIGGER REDUCTION IN MEASURING THE COST OF A STOCK OPTION OTHERS HAVE PRIVATELY SUGGESTED A COMPROMISE PLAN THAT WOULD TREAT STOCK OPTIONS IN TWO WAYS THOSE THAT ARE CONSIDERED COMPENSATION WOULD BE CHARGED AGAINST EARNINGS WHILE THOSE THAT PROVIDE AN EQUITY STAKE IN THE COMPANY WOULD NOT BE DEDUCTED ALTHOUGH MANY COMPANIES HAVE BEEN QUIETLY SUPPORTING THIS PLAN IT DID NOT ATTRACT MUCH ATTENTION AT THE ROUNDTABLE TALKS MS FENDER SAID ONLY ONE PARTICIPANT OFFERED THAT APPROACH I DON'T SEE A LOT OF SUPPORT FOR THE PLAN SHE SAID IN ADDITION TO DELAYING A DECISION ON STOCK OPTIONS THE FASB IS ALSO EXPECTED TO POSTPONE FOR AT LEAST A YEAR A SEPARATE PLAN THAT WOULD REQUIRE COMPANIES TO SIMPLY DISCLOSE THE COST OF STOCK OPTIONS ON THEIR FINANCIAL STATEMENTS BUT NOT CHARGE THEM AGAINST EARNINGS THAT RULE WAS SUPPOSED TO TAKE EFFECT WITH THIS YEAR'S FINANCIAL STATEMENTS AT THIS POINT IT SEEMS UNLIKELY THAT THE FASB WILL BE ABLE TO GET OUT A STANDARD IN TIME TO REQUIRE DISCLOSURE FOR 1994 FINANCIAL STATEMENTS MS FENDER SAID THE FASB MAY APPROVE SUCH A DELAY WHEN IT MEETS NEXT MONTH SHE ADDED JOANN S LUBLIN CONTRIBUTED TO THIS ARTICLE 9404220157 940422 PEUGEOT SEES SIGNS OF HOPE DESPITE DEFICIT BUT ANALYSTS DOUBT FIRM CAN STAY INDEPENDENT AFTER 243 MILLION LOSS BY PETER GOLDSTEIN SPECIAL TO THE WALL STREET JOURNAL PARIS SENIOR EXECUTIVES OF FRENCH AUTO MAKER PSA PEUGEOT CITROEN SA ARE UPBEAT ABOUT THE COMPANY'S NEARTERM OUTLOOK DESPITE NEWS OF A 141 BILLION FRANC 243 MILLION LOSS IN 1993 HOWEVER ANALYSTS CONTINUED TO WONDER ABOUT PEUGEOT'S LONGERTERM SURVIVAL IN AN OVERCROWDED EUROPEAN AUTO MARKET THEY DOUBT PEUGEOT CHAIRMAN JACQUES CALVET WILL BE ABLE TO STICK TO HIS PLEDGE OF SHUNNING MAJOR ALLIANCES WITH OTHER MANUFACTURERS A MAJOR PARTNERSHIP WITH ANOTHER GENERALIST CAR MAKER WOULD ONLY ENSURE THAT BOTH OF US WILL PERISH IT'S SURE DEATH MR CALVET SAID MR CALVET LINKED LAST YEAR'S LOSS SWINGING FROM NET GROUP PROFIT OF 337 BILLION FRANCS IN 1992 TO A VARIETY OF FACTORS INCLUDING THE ECONOMIC SLUMP UNFAVORABLE CURRENCY MOVEMENTS IN EUROPE AND HIGH FRENCH INTEREST RATES HE NOTED THAT A 151 SHRINKAGE OF THE EUROPEAN AUTO MARKET DURING 1993 WAS THE WORST ANNUAL DROP SINCE WORLD WAR II BUT THANKS TO A SURPRISINGLY STRONG PERFORMANCE OF SOME NEWER MODELS IN THE LATTER PART OF THE YEAR PARTICULARLY THE CITROEN XANTIA PEUGEOT REDUCED ITS DEFICIT IN THE SECOND HALF TO ONLY 292 MILLION FRANCS FROM 112 BILLION FRANCS IN THE FIRST HALF AND IN THE FIRST QUARTER OF THIS YEAR PEUGEOT IS RACKING UP NOTABLE MARKETSHARE GAINS A RETURN TO PROFIT DOES SEEM ATTAINABLE THIS YEAR UNDER THE CURRENT CIRCUMSTANCES SAID YANN DELABRIERE PEUGEOT'S CHIEF FINANCIAL OFFICER ANALYSTS AGREE THEY'RE VERY WELL POSITIONED RIGHT NOW SAID PHILIPPE BARRIER OF SOCIETE GENERALE EQUITIES AND DERIVATIVES A UNIT OF FRANCE'S SOCIETE GENERALE THEY HAVE A BETTER MIX OF PRODUCTS TO OFFER NOW AND THEIR MARKET SHARE GROWTH IS EXCELLENT INDEED MR CALVET NOTED THAT THE GROUP'S SHARE OF CARS REGISTERED IN EUROPE CLIMBED TO 126 IN THE FIRST QUARTER AGAINST SLIGHTLY LESS THAN 11 A YEAR AGO PEUGEOT IS NO 3 IN EUROPE BEHIND VOLKSWAGEN AG WITH 165 OF THE MARKET AND GENERAL MOTORS CORP AT 128 IN FRANCE ALONE PEUGEOT'S SHARE IN THE FIRST QUARTER ROSE TO 329 FROM 30 IN THE YEAREARLIER QUARTER WHILE FRENCH SALES ARE UP 30 BY VOLUME HELPED IN PART BY GOVERNMENT STIMULUS MEASURES WHILE MR CALVET REAFFIRMED THE COMPANY'S TARGET OF AN UNSPECIFIED LEVEL OF PROFIT THIS YEAR HE ALSO WARNED THAT THE SITUATION IN THE EUROPEAN AUTO MARKET REMAINS TERRIBLY DIFFICULT DEMANDING CONSIDERABLE EFFORTS BY PEUGEOT TO REIN IN COSTS I DON'T BELIEVE IN A SHARP REBOUND IN 1993 THE PEUGEOT CHIEF CAUTIONED THE RECOVERY SEEMS TO ME TO BE RELATIVELY LIMITED THE COSTCUTTING PROCESS ALREADY WAS BEGUN LAST YEAR AS THE GROUP TRIMMED ITS TOTAL PAYROLL BY NEARLY 5 TO 143900 FROM 150800 PEUGEOT ALSO DREW DOWN ITS INVENTORIES BY SOME 45000 UNITS DURING 1993 AND REDUCED INVESTMENTS TO 84 BILLION FRANCS FROM 113 BILLION FRANCS THE PREVIOUS YEAR WHILE THE MEASURES RECEIVE KUDOS ANALYSTS AREN'T SURE IT WILL ALLOW PEUGEOT TO REMAIN A LONE WOLF ON THE EUROPEAN AUTO SCENE THE COMPANY ISN'T AVERSE TO LIMITED COOPERATION SUCH AS ITS VENTURE WITH ITALY'S FIAT SPA BUT MR CALVET CONSIDERS BROADER LINKS TABOO HE HAS SAID THAT A MERGER WITH FIAT DEFIES INDUSTRIAL LOGIC BUT JEANMARC BUCHET ANALYST AT PARISBASED BROKERAGE LEVEN SA THINKS THE EUROPEAN AUTO SALES FIGURES SPEAK FOR THEMSELVES EVENTUALLY WITH THE JAPANESE COMING IN THERE WON'T BE MUCH CHOICE MR BUCHET SAID PERHAPS PEUGEOT WILL FIND A PARTNER IN THE US INDEED PEUGEOT HAS IN THE PAST SOUGHT A NICHE VENTURE WITH A US MANUFACTURER TO PRODUCE A CAR TARGETED AT A VERY PRECISE MARKET WITH ANNUAL PRODUCTION LIMITED TO BETWEEN 30000 AND 70000 UNITS CHRYSLER CORP FINANCIALLY STRONG AGAIN IS VIEWED AS AN EVENTUAL PARTNERSHIP CANDIDATE FOR PEUGEOT IT COULD GIVE CHRYSLER A CHANCE TO FORM A PRESENCE IN EUROPE WHERE GENERAL MOTORS AND FORD MOTOR CO ALREADY ARE BIG PLAYERS ANALYSTS RULE OUT A MERGER WITH RENAULT SA PEUGEOT'S STATEOWNED FRENCH RIVAL THAT IS HEADED FOR PRIVATIZATION IN THE NEXT YEAR OR SO LAST YEAR A MERGER AGREEMENT BETWEEN RENAULT AND AB VOLVO OF SWEDEN CRUMBLED AFTER VOLVO SHAREHOLDERS REJECTED THE TERMS I THINK FOR POLITICAL REASONS THERE HAVE TO BE TWO COMPANIES MAKING CARS IN FRANCE MR BUCHET SAID IN ANY EVENT THE PRODUCTS OF RENAULT AND PEUGEOT OVERLAP TOO MUCH TO MAKE MUCH SENSE WHILE PEUGEOT'S 1993 LOSS WAS LESS THAN EXPECTED ANALYSTS' FORECASTS HOVERED AROUND 17 BILLION FRANCS INVESTORS RECOILED TO NEWS THAT THE COMPANY WILL OFFER NO DIVIDEND IN 1994 FOLLOWING A 10FRANCSASHARE PAYOUT LAST YEAR IN TRADING YESTERDAY ON THE PARIS BOURSE PEUGEOT SHARES CLOSED AT 905 FRANCS DOWN NINE FRANCS MR CALVET PROMISED THAT WHEN PEUGEOT RETURNS TO PROFITABILITY THE COMPANY WILL OFFER A REASONABLE DIVIDEND 9404220156 940422 DELL COMPUTER SEES DERIVATIVES LOSSES STOCK DROPS 12 BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DELL COMPUTER CORP'S STOCK TUMBLED 12 AFTER THE COMPANY ESTIMATED IT WOULD INCUR LOSSES FROM DERIVATIVES FOR THE QUARTER ENDING MAY 1 THE PROJECTED PAPER LOSS WHICH SOME ANALYSTS PEGGED AT BETWEEN 5 MILLION AND 15 MILLION COMES AMID A STRING OF DERIVATIVESRELATED HITS IN RECENT WEEKS INCLUDING A 157 MILLION PRETAX CHARGE AT PROCTER & GAMBLE CO TO CLOSE OUT TWO DERIVATIVES CONTRACTS YESTERDAY IN TRADING ON THE NASDAQ STOCK MARKET DELL COMMON CLOSED AT 22 DOWN 2875 ON VOLUME OF 96 MILLION SHARES DERIVATIVES ARE FINANCIAL AGREEMENTS WHOSE RETURNS ARE LINKED TO OR DERIVED FROM THE PERFORMANCE OF SOME UNDERLYING ASSET SUCH AS BONDS CURRENCIES OR COMMODITIES DELL OFFICIALS SAID THE COMPANY'S DERIVATIVES LOSS WOULD BE ORDERS OF MAGNITUDE LESS THAN PROCTER & GAMBLE'S AND SAID IT WOULDN'T RESULT IN AN OVERALL LOSS FOR THE COMPANY FOR THE QUARTER DELL ALSO SAID ITS DERIVATIVES ACTIVITIES DON'T INVOLVE BANKERS TRUST NEW YORK CORP WHICH HAS BEEN THREATENED WITH LEGAL ACTION BECAUSE OF ITS HANDLING OF PROCTER & GAMBLE AND OTHERS STILL THE DELL NEWS SPOOKED MANY ON WALL STREET WHO STILL RECALL DELL'S FOREIGNCURRENCY TRADING SCANDAL IN LATE 1992 THEN DELL ACKNOWLEDGED THAT IT HAD LOSSES OF TENS OF MILLIONS OF DOLLARS IN CURRENCY AND HEDGING PROMPTING AN INQUIRY BY THE SECURITIES AND EXCHANGE COMMISSION AND DIMMING DELL'S STATUS AS A HIGHTECH CORPORATE STAR WHILE ANALYSTS AGREED THERE WASN'T ANY EVIDENCE THAT THE DERIVATIVES PROBLEMS ARE ON THE SAME SCALE AS THE FOREIGNCURRENCY WOES THE SIMILARITIES NEVERTHELESS SCARED AWAY INVESTORS IN THE SCHEME OF THINGS IT'S VERY SMALL MOST LIKELY SAID ROBERT ANASTASI AN ANALYST AT ROBINSON HUMPHREY IN ATLANTA BUT WE DON'T KNOW THE MAGNITUDE IT'S THE DEJA VU THING THAT HAS MANY PEOPLE SPOOKED LIKE DELL'S FOREIGNCURRENCY WOES THE COMPANY'S DERIVATIVES LOSS WAS FIRST DISCUSSED ON WALL STREET BY DAVID KORUS AN ANALYST AT KIDDER PEABODY & CO IN NEW YORK DELL OFFICIALS SAY MR KORUS DISCUSSED THE ISSUE IN A BRIEFING TO SALES MANAGERS YESTERDAY MORNING MR KORUS DECLINED TO COMMENT A DELL SPOKESWOMAN SAID THE COMPANY HAS ACKNOWLEDGED A TOTAL DERIVATIVES POSITION OF ABOUT 355 MILLION IN A REPORT FILED EARLY THIS MONTH WITH FEDERAL REGULATORS THE COMPANY DISCLOSED 500000 IN DERIVATIVESRELATED LOSSES FOR THE YEAR ENDED JAN 30 WHILE DELL OFFICIALS HAVEN'T DISCLOSED THE SIZE OF THE LATEST EXPECTED LOSS ANALYSTS WERE TOLD BY THE COMPANY THAT THERE WASN'T ANY NEED TO REVISE QUARTERLY EARNINGS ESTIMATES OF BETWEEN 33 CENTS AND 53 CENTS A SHARE THIS SEEMS LIKE AN OVERREACTION SAID STEVEN ESKENAZI AN ANALYST AT ALEX BROWN IN NEW YORK STOCKS ARE SUPPOSED TO GO UP OR DOWN ON FUNDAMENTALS THIS DOESN'T CALIBRATE 9404220155 940422 ATM OPERATOR AGREES TO SETTLE ANTITRUST CHARGES BY VIVECA NOVAK STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE OPERATOR OF THE LARGEST REGIONAL NETWORK OF BANK AUTOMATICTELLER MACHINES IN THE US AGREED IN A CONSENT DECREE FILED BY THE JUSTICE DEPARTMENT TO OPEN ITSELF TO COMPETITION THE DECREE WHICH REQUIRES COURT APPROVAL SETTLES ANTITRUST CHARGES AGAINST THE NETWORK MONEY ACCESS SERVICE INC WIDELY KNOWN AS MAC THE DEPARTMENT ALLEGED THAT ELECTRONIC PAYMENT SERVICES INC WHICH OPERATES THE NETWORK FORCED BANKS TO BUY ITS DATAPROCESSING SERVICES IN ORDER TO JOIN THE NETWORK AND THAT IT USED ITS CONTROL OVER MEMBERS' DATA PROCESSING TO PREVENT THEM FROM HOOKING UP TO COMPETING ATM NETWORKS JUSTICE DEPARTMENT OFFICIALS SAID THESE PRACTICES COST CONSUMERS 100 MILLION IN 1993 ALONE MAC IS THE DOMINANT ATM NETWORK IN PENNSYLVANIA NEW JERSEY DELAWARE WEST VIRGINIA NEW HAMPSHIRE AND PARTS OF OHIO ROBERT LITAN DEPUTY ASSISTANT ATTORNEY GENERAL FOR ANTITRUST SAID THAT AS A RESULT OF THE SETTLEMENT BANKS WILL BE ABLE TO SIGN UP MORE EASILY WITH MORE THAN ONE REGIONAL NETWORK ENABLING CONSUMERS TO USE THEIR ATM CARDS IN MORE LOCATIONS HE ALSO SAID FEES FOR ATM TRANSACTIONS IN THE MAC REGION SHOULD COME DOWN BECAUSE OF THE INCREASED COMPETITION MAC'S MONOPOLY HAS ALLOWED IT TO CHARGE ITS MEMBER BANKS WHATEVER IT WANTS AND BANKS HAVE PASSED THE COSTS ON TO CUSTOMERS THIS IS THE FIRST MONOPOLIZATION CASE BROUGHT BY THE CLINTON ADMINISTRATION AND THE FIRST TYING CASE FILED BY THE JUSTICE DEPARTMENT IN MORE THAN 10 YEARS TYING INVOLVES REQUIRING CUSTOMERS TO PURCHASE OTHER PRODUCTS IN ADDITION TO WHAT THEY WANT IT IS CONSIDERED PARTICULARLY SUSPECT WHEN THE COMPANY INVOLVED HAS A MONOPOLY ON THE FIRST PRODUCT THE INVESTIGATION WAS INITIATED FOUR YEARS AGO DURING THE BUSH ADMINISTRATION SAID ANNE BINGAMAN THE JUSTICE DEPARTMENT'S ANTITRUST CHIEF SHE SAID SHE MADE THE CASE A PRIORITY WHEN SHE TOOK OFFICE TELLING HER ATTORNEYS THAT THEY NEED TO PUT SOME SERIOUS MUSCLE INTO RESOLVING IT ELECTRONIC PAYMENT OFFICIALS PLAYED DOWN THE DECREE THAT WHICH WE HAVE AGREED TO IS THAT WHICH WE HAVE ALREADY ANNOUNCED PUBLICLY WE WOULD BE DOING SAID JOHN BERAN CHIEF EXECUTIVE OFFICER OF THE COMPANY WHICH IS A JOINT VENTURE OF CORESTATES FINANCIAL CORP BANC ONE CORP PNC BANK CORP AND SOCIETY CORP LAST YEAR ELECTRONIC PAYMENT SETTLED A LAWSUIT FILED BY ANOTHER NETWORK NEW YORK CASH EXCHANGE BY AGREEING TO ALLOW NYCE AND OTHER REGIONAL NETWORKS TO PROVIDE PROCESSING SERVICES TO MEMBERS OF ITS NETWORK BY OCTOBER 1995 BUT MR LITAN SAID THAT THE CONSENT DECREE IF APPROVED WILL ACCELERATE THAT DATE AND HE SAID IT IS BROADER ESSENTIALLY PROHIBITING THE NETWORK FROM ENGAGING IN ANY DISCRIMINATORY PRACTICES AGAINST OTHER REGIONAL NETWORKS 9404220154 940422 SHANGHAI SEEKS FOREIGN ADVICE TO SPUR PROPERTY SALE IN FORMER BUSINESS HUB BY JOSEPH KAHN STAFF REPORTER OF THE WALL STREET JOURNAL SHANGHAI CHINA LOCAL AUTHORITIES HAVE STEPPED UP EFFORTS TO SELL OFF A SERIES OF BUILDINGS ALONG SHANGHAI'S BUND INVITING FOREIGN BROKERS TO HELP ORGANIZE WHAT'S LIKELY TO BECOME THE LARGEST REALESTATE AUCTION IN CHINESE HISTORY HONG KONGBASED REALESTATE FIRMS ARE COMPETING FOR A CONTRACT TO ASSESS AND ORGANIZE A TENDER PROCESS FOR 37 BUILDINGS THAT ONCE SERVED AS THE CHINA HEADQUARTERS FOR MAJOR INTERNATIONAL BANKS TRADING HOUSES AND OTHER FINANCIAL COMPANIES CHINESE OFFICIALS AND FOREIGN REALESTATE SPECIALISTS SAID CHINA HAD ONCE SOUGHT TO SELL THE BUILDINGS OFF PIECEMEAL IN BACKROOM NEGOTIATIONS XU KUANGDI SHANGHAI'S DEPUTY MAYOR SAID THE CITY WOULD RELY ON FOREIGN ADVICE TO SET PRICES FOR THE BUILDINGS THAT ARE REALISTIC AND ACCEPTABLE BY INTERNATIONAL STANDARDS HONG KONG FIRMS INCLUDING BROOKE HILLIER PARKER AND JONES LANG WOOTTON LTD ARE AMONG THE LEADING CONTENDERS TO HELP ORGANIZE AN AUCTION ALTHOUGH MR XU WELCOMED THE PARTICIPATION OF OTHER INTERNATIONAL REALESTATE FIRMS THE CITY DOESN'T EXPECT TO RECEIVE PRICES ABOVE OFFICESPACE PRICES IN HONG KONG'S CENTRAL DISTRICT MR XU SAID WHILE THAT INDICATES A MODERATION FROM THE ONCE STRATOSPHERIC PRICES SHANGHAI EXPECTED FOR THE HISTORIC BUT RUNDOWN BUILDINGS IT'S HARDLY A MAJOR CONCESSION PRICES FOR OFFICE SPACE IN LEADING BUILDINGS IN CENTRAL HONG KONG RANGE FROM 1800 TO 2300 PER SQUARE FOOT THE HIGHEST IN THE WORLD MR XU SET NO TIMETABLE FOR THE AUCTIONING EXCEPT TO SAY IT WON'T HAPPEN IN THE NEXT ONE OR TWO MONTHS THE BUND AREA STRETCHES FOR ABOUT A MILE ALONG SHANGHAI'S WATERFRONT MAJOR BRITISH AMERICAN AND FRENCH FIRMS BUILT ELABORATE ARTDECO HEADQUARTERS THERE DURING SHANGHAI'S PROSPEROUS COLONIAL ERA THE FIRMS WERE EXPELLED WHEN COMMUNISTS TOOK POWER IN 1949 THE BUND SINCE HAS SERVED AS SHANGHAI GOVERNMENT CENTER AND AS OFFICES FOR LOCAL BANKS AND COMPANIES SHANGHAI HOPES TO RESTORE ITS PREWAR STATUS AS A MAJOR ASIAN FINANCIAL CENTER AND THE SALE OF BUILDINGS ALONG THE BUND HAS BECOME A LEADING SYMBOL OF THAT EFFORT IN THE EARLY 1990S LOCAL OFFICIALS DECLARED THEIR INTENTION OF SELLING THE PROPERTIES TO THE ORIGINAL OWNERS BUT COMPANIES INTERESTED IN BUYING BACK THE PROPERTIES BALKED AT CHINA'S ASKING PRICES NO DEAL HAS CLOSED CITY OFFICIALS NOW APPEAR DETERMINED TO LOWER PRICES AND SPEED UP THE PROCESS MR XU SAID THE CITY WON'T ALLOW CURRENT OCCUPANTS OF THE BUILDINGS TO HOLD THEM RANSOM FOR HIGHER RESETTLEMENT COMPENSATION WE WILL NOT LET THE CURRENT OCCUPANTS EXPLOIT THE SITUATION HE SAID THESE ARE STATE PROPERTIES HE SAID THE CITY WILL SUPPLY NEW OFFICES FOR MOST USERS IN OUTLYING AREAS OF SHANGHAI BUT THAT THEY CAN'T EXPECT A DIRECT SHARE OF THE PROCEEDS OF A SALE THE DECISION TO BRING IN FOREIGN BROKERS HAS KINDLED THE INTEREST OF FORMER OWNERS BANQUE INDOSUEZ'S SHANGHAI BRANCH MANAGER FIEPKO TAMMES KLUG SAID THE BANK IS AWAITING THE TENDERING WE'RE INTERESTED AND WE'RE JUST WAITING FOR THE CHINESE SIDE HE SAID HONG KONG BANK OFFICIALS SAID THIS WEEK THAT THEY ARE CLOSER TO STRIKING A DEAL FOR THEIR FORMER BUND PROPERTY A STATELY GRANITE EDIFICE THAT SERVES AS THE OFFICES OF THE SHANGHAI CITY GOVERNMENT THEY DECLINED TO DISCUSS PRICES THINGS HAVE IMPROVED CONSIDERABLY IN RECENT WEEKS ONE BANK OFFICIAL SAID BUT I'D STILL SAY WE'VE GOT A WAYS TO GO MOST OF THE PROPERTIES HAVE RECEIVED LITTLE OR NO RENOVATION SINCE THE FORMER OWNERS LEFT WHILE THE EXTERIORS SEEM NONE THE WORSE INTERIOR FIXTURES HAVE CRUMBLED FROM NEGLECT FORMER OWNERS HAVE SAID THEY'RE SKEPTICAL OF THE USEFULNESS OF THE BUILDINGS FOR MODERN BANKING EVEN GIVEN SUCH BASIC REQUISITES AS ELECTRICAL SUPPLY AND TELECOMMUNICATIONS ON AN EFFICIENCY BASIS YOU COULD NEVER COMPARE THESE PROPERTIES TO CENTRAL HONG KONG SAID NICK BROOKE OF BROOKE HILLIER PARKER BUT WHEN YOU'RE DEALING WITH NOSTALGIA THAT KIND OF RATIONALE CAN GO OUT THE WINDOW I THINK ALL THE BIG ONES FORMER OWNERS ARE SERIOUSLY CONSIDERING A REPURCHASE IN PART AS A MODEL FOR THE REDEVELOPMENT EFFORT SHANGHAI REFURBISHED THE OLD HEADQUARTERS OF THE KUOMINTANG CENTRAL BANK ON THE BUND MAKING IT THE HOME OF THE COUNTRY'S NEW INTERBANK CURRENCYEXCHANGE CENTER POLISHED ENGRAVINGS RESTORED STAINED GLASS THICK RED CARPETS AND REPAIRED MARBLE HAVE RECAPTURED AT LEAST A SEMBLANCE OF THE BUILDING'S ONETIME GRANDEUR THE GOVERNMENT ALSO MANAGED TO EQUIP A LARGE COMPUTERIZED TRANSACTION ROOM ON THE SECOND FLOOR THOUGH OFFICIALS OF THE INTERBANK MARKET ACKNOWLEDGED THEY LACKED SUFFICIENT ELECTRICITY IN THE INITIAL STAGES 9404220153 940422 ARCTIC ALASKA CHARGED IN SINKING OF A FISHING VESSEL BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL SEATTLE A FEDERAL GRAND JURY CHARGED ARCTIC ALASKA FISHERIES CORP AND 14 OF ITS CURRENT AND FORMER SENIOR EXECUTIVES CAUSED THE 1990 SINKING OF THE FISHPROCESSING VESSEL ALEUTIAN ENTERPRISE THE 143FOOT VESSEL CAPSIZED AND SANK WHILE HAULING AN OVERLOADED FISH NET ABOARD IN CALM WATERS IN THE BERING SEA MARCH 22 1990 NINE OF THE SHIP'S 31MEMBER CREW PERISHED IN ONE OF THE WORST COMMERCIAL FISHING DISASTERS IN US HISTORY SURVIVORS TESTIFIED THAT THE CREW WAS POORLY SCHOOLED IN SAFETY PROCEDURES AND THE SHIP WAS DANGEROUSLY MAINTAINED IN AN INVESTIGATION AFTER THE SINKING COAST GUARD INVESTIGATORS SAID ARCTIC ALASKA THE NATION'S LARGEST FISHING COMPANY FAILED TO TAKE ADEQUATE SAFETY PRECAUTIONS TO PROTECT THE SHIP AND ITS CREW IN A 44COUNT INDICTMENT MONDAY THE GRAND JURY SAID ARCTIC ALASKA A SEATTLEBASED UNIT OF TYSON FOODS CORP CAUSED VESSELS TO BE SENT TO SEA IN A STATE THAT WAS LIKELY TO ENDANGER THE LIVES OF INDIVIDUALS ON BOARD THE GRAND JURY'S INDICTMENT CHARGES THAT ARCTIC ALASKA AND ITS SENIOR OFFICIALS CONSPIRED TO BOOST PROFITS BY CUTTING BACK ON MAINTENANCE AND SAFETY PROCEDURES AND FALSIFIED DOCUMENTS THAT ALLOWED SOME OF THE SHIP'S OFFICERS TO OBTAIN OPERATING LICENSES THE PANEL ALSO SAID SENIOR ARCTIC ALASKA EXECUTIVES LIED TO FEDERAL INVESTIGATORS AFTER THE SHIP SANK AND COVERED UP VARIOUS SAFETY SHORTCOMINGS INCLUDING FINDINGS THAT SOME OF THE ALEUTIAN ENTERPRISE CREW TESTED POSITIVE FOR DRUG USE AFTER THE ACCIDENT AMONG THOSE CHARGED WITH CRIMINAL WRONGDOING WERE ARCTIC ALASKA'S FORMER CHAIRMAN FRANCIS L MILLER ITS FORMER PRESIDENT TERRY J BAKER AND A NUMBER OF OTHER FORMER SENIOR ARCTIC ALASKA OFFICIALS THE SHIP'S CAPTAIN MARK SIEMONS WAS ALSO CHARGED ALL THOSE CHARGED EXCEPT MR SIEMONS HAVE LEFT THE COMPANY A TYSON SPOKESMAN SAID TYSON'S SPOKESMAN SAID THE COMPANY PURCHASED ARCTIC ALASKA IN 1992 AFTER THE ALEUTIAN ENTERPRISE SANK THIS IS A SITUATION WE INHERITED THE SPOKESMAN SAID THERE'S NO SUGGESTION THAT ANYONE WITH TYSON IS IN ANY WAY INVOLVED IN THIS MATTER THE SPOKESMAN SAID THE COMPANY DENIED THE ALLEGATIONS INVOLVING ARCTIC ALASKA AND INTENDED TO DEFEND THE COMPANY VIGOROUSLY ATTORNEYS FOR MESSRS MILLER AND BAKER SAID THEIR CLIENTS DENIED ANY WRONGDOING IN CONNECTION WITH THE ALEUTIAN ENTERPRISE SINKING 9404220152 940422 TRAVEL OF LUXURY AND LOSSES MANY RITZ HOTELS ARE IN THE RED BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL WALK INTO THE RITZCARLTON HOTEL IN PHILADELPHIA CLEVELAND OR NEW YORK AND YOU CAN FEEL THE RICHES TOO BAD THE OWNERS DON'T FEEL AS GOOD AS THE GUESTS ALL THREE PROPERTIES ARE LOSING MONEY IN FACT OF THE WORLD'S 30 RITZCARLTONS MOST OF WHICH HAVE OPENED IN THE PAST FIVE YEARS ONLY A HALF DOZEN ARE BELIEVED TO BE IN THE BLACK INVESTORS WHO ASSUMED INFLATION WOULD BOOST PROPERTY VALUES AND ROOM RATES ARE PAYING THE PRICE WITH TRAVELERS TRYING TO CUT COSTS I HALFJOKINGLY TOLD OUR GENERAL MANAGER THAT WE'D BE BETTER OFF WITH INVOICES THAT SAID HOLIDAY INN AT THE TOP SAYS JOSEPH P DENNY PRESIDENT OF ROUSE & ASSOCIATES OF MALVERN PA A REALESTATE COMPANY THAT OWNS THE THREEYEAROLD PHILADELPHIA RITZ THE RAPID GROWTH OF RITZ HAS BENEFITED AT LEAST ONE BUSINESS THE RITZCARLTON HOTEL CO THE PRIVATELY HELD INNKEEPER BASED IN ATLANTA RECEIVES LUCRATIVE MANAGEMENT FEES FOR RUNNING THE PROPERTIES TYPICALLY 5 OF GROSS REVENUE EVEN IF THE HOTEL IS UNPROFITABLE SOME CRITICS CONTEND THAT RITZ IS MORE INTERESTED IN ENHANCING ITS BRAND FOR EXAMPLE BY SPENDING 200000 A YEAR ON FLOWERS IN ONE HOTEL THAN DELIVERING RESULTS TO INVESTORS IT SPEAKS TO RITZ'S ARROGANCE AND NARROWMINDEDNESS THAT THEY ARE NOT MORE SENSITIVE TO PROFITS SAYS LAURENCE GELLER OF GELLER & CO A CHICAGO HOTEL CONSULTANT WHO HAS REPRESENTED SEVERAL RITZ OWNERS IN REVISING MANAGEMENT CONTRACTS HORST SCHULZE THE RITZCARLTON COMPANY'S PRESIDENT SAYS HE BELIEVES ONLY 30 OF THE PROPERTIES ARE UNPROFITABLE BUT CONCEDES HE DOESN'T KNOW WHAT INVESTORS ARE PAYING FOR DEBT SERVICE THE RITZ COMPANY OWNS THREE PROPERTIES AND HAS EQUITY IN 10 OTHERS MR SCHULZE SAYS ALL THE HOTELS ARE SUCCESSFUL BECAUSE THEY ACHIEVE EXCELLENT OPERATING PROFITS RITZ PROPERTIES ALSO OUTPERFORM COMPETITORS IN THEIR MARKET ON OCCUPANCY AND ROOM RATES INDUSTRY ANALYSTS CONFIRM WHOEVER OWNS A RITZCARLTON MUST CONSIDER THEMSELVES VERY LUCKY THAT WE'RE RUNNING IT MR SCHULZE SAYS TRAVELERS HAVE A STAKE IN HOW WELL THE RITZ PROPERTIES FARE AT ISSUE IS WHETHER A LUXURY HOTEL CHAIN ONCE CONSIDERED AN OXYMORON IS ECONOMICALLY VIABLE RITZ'S PRINCIPAL COMPETITOR FOUR SEASONS HOTELS INC OF TORONTO WHICH OPERATES 44 DELUXE HOTELS WORLDWIDE IS ALSO STRUGGLING THE RITZCARLTON COMPANY HAS FLOUTED CONVENTIONAL WISDOM BY PUTTING FIVESTAR PROPERTIES IN THREESTAR MARKETS LIKE PHOENIX AND KANSAS CITY MO BUT SO FAR RITZ OWNERS IN THOSE CITIES AND ELSEWHERE HAVE BEEN SUBSIDIZING GUESTS BY SELLING ROOMS AND SERVICES THAT DON'T MEET COSTS TO HELP CUT THOSE COSTS SOME RITZ HOTELS HAVE BEGUN DEFINING LUXURY DOWNWARD THE FINE DINING ROOMS AT RITZ PROPERTIES IN ST LOUIS CLEVELAND AND PENTAGON CITY VA HAVE BEEN CLOSED AS GENERALUSE RESTAURANTS AND ARE NOW ONLY OPEN FOR PRIVATE PARTIES THE PHILADELPHIA RITZ HAS CUT ITS WORK FORCE BY 18 TO 270 EMPLOYEES THE DRIVING FORCE BEHIND THE RITZ IS WILLIAM B JOHNSON A RECLUSIVE ATLANTA DEVELOPER WHO OWNS 147 WAFFLE HOUSES AND 10 HOLIDAY INNS IN 1983 MR JOHNSON ACQUIRED THE BRAND NAME IMMORTALIZED BY LEGENDARY HOTELIER CESAR RITZ HE ALSO TOOK MANAGEMENT CONTROL OF THE 67YEAROLD BOSTON PROPERTY BUT NOT THE FAMED PARIS HOTEL THE NEW RITZ COMPANY BOOMED IN THE '80S THE EARLIEST PROPERTIES A 553ROOM HOTEL IN THE BUCKHEAD SECTION OF ATLANTA AND LAVISH RESORTS IN LAGUNA NIGUEL CALIF AND NAPLES FLA WERE HITS DEEPPOCKET INVESTORS PARTICULARLY FROM JAPAN LINED UP TO BUY A PIECE OF THE RITZ DREAM RITZ OFFICIALS POURED MONEY INTO ORIENTAL RUGS TEATIME HARPISTS AND A RIGOROUS TRAINING REGIMEN THAT PRODUCED POLISHED CHEERFUL EMPLOYEES THE EFFORT PAID OFF AS RITZ BECAME THE FIRST HOTEL COMPANY TO WIN THE MALCOLM BALDRIGE NATIONAL QUALITY AWARD IN 1992 BUT QUALITY COSTS PAUL GRAY RECALLS HOW THE NEW YORK RITZ IN 1989 ONCE SENT 20 OVERBOOKED GUESTS TO ANOTHER HOTEL IN THREE LIMOUSINES PACKED WITH CHAMPAGNE AND CAVIAR THE COST 5000 PROFIT WAS NEVER MUCH OF A CONCERN SAYS MR GRAY WHO THEN WORKED AT THE NEW YORK RITZ BUT IS NOW A SALES DIRECTOR FOR A PRINCETON NJ HOTEL THE IDEA WAS TO PLEASE THE GUEST THE PARTY ENDED IN THE '90S RITZ OWNERS IN ST LOUIS KANSAS CITY PHOENIX AND HUNTINGTON CALIF HAVE ALL DEFAULTED ON LOANS OWNERS OF PROPERTIES IN CLEVELAND NEW YORK WASHINGTON PHILADELPHIA AND ASPEN COLO CONFIRM THEIR HOTELS ARE IN THE RED SHIMIZU CORP OF TOKYO A CONSTRUCTION COMPANY HAS STAKES IN RITZ PROPERTIES IN AMELIA ISLAND FLA MARINA DEL REY CALIF PALM BEACH FLA AND MAUNA LANI HAWAII AND ALL ARE LOSING MONEY ACCORDING TO A PERSON FAMILIAR WITH THE SITUATION SOME RITZES ARE IN MARKETS THAT CAN'T SUPPORT THE RATES NEEDED TO TURN A PROFIT IN KANSAS CITY THE AVERAGE ROOM RATE LAST YEAR FOR ALL LOCAL HOTELS WAS 67 RITZ'S AVERAGE RATE WAS 115 THAT'S AN IMPRESSIVE PREMIUM BUT NOT GOOD ENOUGH THE KANSAS CITY RITZ WHICH OPENED FOUR YEARS AGO NEEDED AN AVERAGE ROOM RATE OF 185 TO BE PROFITABLE ACCORDING TO JEFF MARVEL A LOCAL HOTEL CONSULTANT STILL MANY OWNERS APPLAUD THE RITZ COMPANY FOR DELIVERING A SUPERIOR PRODUCT AND REMAIN CONFIDENT THEIR HOTELS WILL TURN AROUND OMAR BENJAMIN SENIOR INVESTMENT MANAGER AT NEWFIELD ENTERPRISES INTERNATIONAL IN LOS ANGELES MANAGES ASSETS FOR A SAUDI INVESTOR WHO OWNS SEVERAL RITZ HOTELS INCLUDING THE RECENTLY RENOVATED NEW YORK AND WASHINGTON PROPERTIES YOU CAN'T JUDGE THESE HOTELS IN ONE YEAR MR BENJAMIN SAYS WE FEEL VERY GOOD ABOUT THESE HOTELS MR SCHULZE SAYS RITZ WANTS OWNERS TO PROFIT BECAUSE THE COMPANY TYPICALLY GETS A PERCENTAGE OF EARNINGS AS WELL AS A MANAGEMENT FEE RITZ OFFICIALS SAY THEY ARE DEVELOPING MORE EFFICIENT WAYS TO RUN HOTELS FOR EXAMPLE THE DEARBORN MICH HOTEL HAS CREATED AN ASSEMBLYLINESTYLE HOUSEKEEPING SERVICE WHEREAS EACH ROOM USED TO BE CLEANED BY ONE HOUSEKEEPER NOW SEVERAL HOUSEKEEPERS WITH DIFFERENT DUTIES SUCH AS MAKING THE BED ATTACK EVERY ROOM THE RESULT ROOMS ARE PREPARED MORE QUICKLY AND THE HOTEL CUT PAYROLL EXPENSES BY 330000 INDUSTRY ANALYSTS SAY MANY RITZES COULD STILL BE GOOD INVESTMENTS IF THE ECONOMY CONTINUES TO IMPROVE AND THE OWNERS ARE ABLE TO RESTRUCTURE THEIR DEBT LAST YEAR 40 OF THE NATION'S LUXURY HOTELS MADE MONEY COMPARED WITH 30 IN 1992 IN LARGE PART BECAUSE 2 BILLION IN CAPITAL COSTS WAS REDUCED THROUGH RESTRUCTURINGS ACCORDING TO COOPERS & LYBRAND MR SCHULZE SAYS RITZ'S FUTURE HAS NEVER BEEN BRIGHTER HE SAYS HE'S NOT CONCERNED ABOUT ATTRACTING CAPITAL FOR FUTURE DEVELOPMENTS BECAUSE THE OPERATING IMPROVEMENTS THAT THE COMPANY IS MAKING WILL RESULT IN RITZ BEING THE NATION'S STRONGEST HOTEL COMPANY IF PROSPECTS ARE SO GOOD WHY DOESN'T RITZ'S OWNER MR JOHNSON DEVELOP FUTURE RITZ HOTELS HIMSELF MR JOHNSON DECLINED TO BE INTERVIEWED MR SCHULZE SAYS MR JOHNSON'S INTERESTS LIE ELSEWHERE MR SCHULZE PREDICTS THE NUMBER OF RITZ PROPERTIES WILL DOUBLE TO 60 IN THE NEXT THREE YEARS THEY WILL BE IN JAKARTA INDONESIA TOKYO SEOUL SOUTH KOREA NEW ORLEANS ORLANDO FLA AND PITTSBURGH THE LATTER BUILT INTO THE CLIFFS OF MOUNT WASHINGTON OVERLOOKING THREE RIVERS STADIUM EVERY TIME A CUSTOMER GOES TO PITTSBURGH HE HAS TO STAY WITH A COMPETITOR AND WE DON'T LIKE THAT MR SCHULZE SAYS WE HAVE TO HAVE MORE HOTELS OR OTHERWISE WE WON'T SURVIVE 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 9404220151 940422 TECHNOLOGY EARNINGS AT TI ROSE SHARPLY IN 1ST QUARTER BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS TEXAS INSTRUMENTS INC SAID A STRONGERTHANEXPECTED COMPUTERCHIP MARKET HELPED PRODUCE A 30 JUMP IN FIRSTQUARTER REVENUE AND SHARPLY HIGHER EARNINGS THE RESULTS FAR ABOVE MOST ANALYSTS' ESTIMATES PROMPTED THE ELECTRONICS CONCERN TO RAISE ITS FORECAST OF CHIPINDUSTRY GROWTH AND SENT SHARES OF OTHER SEMICONDUCTOR COMPANIES SURGING IT CLOSED UP 675 A SHARE AT 7150 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING WHILE MICRON TECHNOLOGY INC CLOSED UP 350 A SHARE AT 34375 ON THE NASDAQ STOCK MARKET INTEL CORP ROSE 275 A SHARE CLOSING AT 6025 TEXAS INSTRUMENTS REPORTED A 65 JUMP IN NET INCOME TO 134 MILLION OR 141 A SHARE COMPARED WITH 81 MILLION OR 85 CENTS A SHARE FOR THE YEAREARLIER PERIOD THE RESULTS IN THE LATEST PERIOD INCLUDE PRETAX CHARGES TOTALING 132 MILLION FOR TWO RESTRUCTURING MOVES THAT WILL REDUCE THE COMPANY'S WORK FORCE BY ABOUT 1100 PEOPLE MOSTLY IN EUROPE IF CHARGES AND INCOME FROM ROYALTIES ARE EXCLUDED TI WOULD HAVE EARNED 174 A SHARE IN THE QUARTER COMPARED WITH A YEAREARLIER 85 CENTS A SHARE REVENUE WAS 24 BILLION UP FROM 18 BILLION MOST OF THE REVENUE GAINS CAME FROM THE COMPANY'S SEMICONDUCTOR BUSINESS WHICH HAS BENEFITED FROM A BOOM IN PERSONAL COMPUTERS AND TELECOMMUNICATIONS PRODUCTS PARTICULARLY POPULAR HAVE BEEN TI'S DIGITAL SIGNALPROCESSING CHIPS WHICH HAVE EMERGED IN RECENT MONTHS AS CRITICAL INGREDIENTS FOR THE DIGITAL IMAGES AND DATA THAT WOULD MAKE UP MUCH OF THE TRAFFIC ON THE MUCHDISCUSSED INFORMATION SUPERHIGHWAY ORDERS FOR THE SPECIALIZED CHIPS GREW SIGNIFICANTLY FASTER THAN OVERALL SEMICONDUCTOR ORDERS TI SAID WHICH REACHED A COMPANY RECORD DURING THE QUARTER THERE SEEMS TO BE A LOT OF GOOD SOLID MOMENTUM HERE SAID WILLIAM J MILTON JR AN ANALYST AT BROWN BROTHERS HARRIMAN IN NEW YORK THEY'VE GOTTEN PROGRESSIVELY MORE BULLISH A 83 MILLION CHARGE IN THE QUARTER WAS TAKEN TO REVAMP TI'S EUROPEAN OPERATIONS INSTEAD OF EACH COUNTRY'S OPERATIONS BEING RUN AS A SELFCONTAINED UNIT TI REORGANIZED AND CONSOLIDATED ITS BUSINESS THE COMPANY SAID THE MOVE WHICH AFFECTS ABOUT 900 WORKERS IN EUROPE WILL SAVE THE COMPANY ABOUT 54 MILLION A YEAR ONCE FULLY IMPLEMENTED SEPARATELY THE COMPANY TOOK A 49 MILLION PRETAX CHARGE RELATED TO THE PLANNED DIVESTITURE OF SOME OF ITS COMPUTERSOFTWARE OPERATIONS WILLIAM A AYLESWORTH CHIEF FINANCIAL OFFICER SAID TI ALREADY HAS BEGUN NEGOTIATIONS ON THE SALE OF SOME PARTS OF THE SOFTWARE BUSINESS A CONSISTENT MONEYLOSER HOWEVER HE WOULDN'T SAY WHICH UNITS THE NEGOTIATIONS INVOLVE OR WHICH COMPANIES ARE INTERESTED IN BUYING THEM THE COMPANY SAID 200 PEOPLE IN THE US WORK AT THE OPERATIONS THAT IT IS LOOKING TO SELL ANALYSTS SAID NEITHER RESTRUCTURING MOVE REFLECTS A BASIC PROBLEM WITH TI'S CHIP OPERATION ITS BIGGEST AND MOST PROFITABLE BUSINESS BASED ON FIRSTQUARTER DEMAND TI RAISED ITS OUTLOOK FOR THE OVERALL CHIP INDUSTRY SAYING IT EXPECTS THE WORLD MARKET TO GROW TO 93 BILLION THIS YEAR A 21 JUMP OVER 1993 IN EARLY MARCH TI HAD FORECAST A 17 GAIN FOR THE YEAR BASED ON ITS RECENT STRONG SHOWING THE COMPANY ALSO SAID IT PLANS TO INCREASE ITS ANNUAL DIVIDEND BEGINNING IN JULY FOR THE FIRST TIME SINCE 1987 TO 1 A SHARE FROM 72 CENTS 9404220150 940422 WHO'S NEWS NATIONAL AMUSEMENTS INC NATIONAL AMUSEMENTS INC DEDHAM MASS MARTIN S DAVIS FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PARAMOUNT COMMUNICATIONS INC WAS ELECTED A DIRECTOR OF THIS MOVIE THEATER OPERATOR CLOSELY HELD NATIONAL AMUSEMENTS IS THE MAJORITY OWNER OF VIACOM INC WHICH RECENTLY ACQUIRED PARAMOUNT MR DAVIS RECENTLY ANNOUNCED THE FORMATION OF WELLSPRING ASSOCIATES INC SPECIALIZING IN INVESTMENTS IN UNDERVALUED COMPANIES 9404220149 940422 WHO'S NEWS AUTOCLAVE ENGINEERS INC AUTOCLAVE ENGINEERS INC ERIE PA MARILYN G LEVINSON 64 YEARS OLD WAS NAMED A DIRECTOR OF THIS PROVIDER OF ENGINEERED PRODUCTS FOR CHEMICAL RESEARCH AND RELATED INDUSTRIALPROCESS MARKETS INCREASING BOARD MEMBERSHIP TO 10 MS LEVINSON IS THE DAUGHTER OF COMPANY FOUNDER FRED GASCHE AND IS MARRIED TO CHAIRMAN JAMES C LEVINSON 9404220148 940422 NEW CONCEPTS IN PARTY THROWING THEIR GUEST LIST THE GUESTS' DIME BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL IMPORTANT PEOPLE WITH A YEN TO MEET THE EMPEROR AND EMPRESS OF JAPAN AT A FETE BEING HELD AT NEW YORK CITY'S PLAZA HOTEL WILL HAVE TO SHELL OUT A FEW BUCKS FIRST 260 TO BE EXACT AS HEAD OF THE WELCOMING COMMITTEE FOR THEIR MAJESTIES THE EMPEROR AND EMPRESS DAVID ROCKEFELLER SR WILL BE THE HOST OF THE JUNE GALA MORE THAN 500 INVITATIONS WERE SENT OUT APRIL 12 BY THE CONSULATE GENERAL OF JAPAN IN NEW YORK INCLUDING A REFERENCE TO THE EXPECTED PAYMENT THE CONSULATE SAYS THE MONEY WILL COVER THE COST OF FOOD AND BEVERAGES ENTERTAINMENT AND RENTING THE MAIN BALLROOM AT THE PLAZA IF THE ROYALS EVEN SHOW UP THE VISIT IS TENTATIVE SO WE HAVE NOTHING TO SAY ABOUT IT AT THIS TIME SAYS KAZUKO SHIRAISHI THE CONSULATE'S PRESS OFFICER THAT MAY COME AS A SURPRISE TO THE GUESTS WHO HAVE BEEN ASKED TO INFORM THE CONSULATE BY APRIL 25 OF THEIR DESIRE TO ATTEND SACHIKO NOGUCHI AN ASSISTANT IN THE CONSULATE SAYS THE GUEST LIST IS EXCLUSIVE IT IS LIMITED TO BIG EXECUTIVES IN LARGE AMERICAN COMPANIES WHO HAVE A RELATIONSHIP WITH JAPAN OR A JAPANESE ORGANIZATION MR ROCKEFELLER'S STAFF IS SOMEWHAT SQUEAMISH ABOUT THE WHOLE IDEA OF PAYING A 260 DINING TARIFF TO MEET THE EMPEROR AND EMPRESS I DON'T BLAME YOU FOR BEING PUZZLED BY THE INVITATION SO ARE WE SAYS ALICE VICTOR MR ROCKEFELLER'S EXECUTIVE ASSISTANT IT IS TOTALLY UNUSUAL BUT I GUESS THIS IS THE JAPANESE SOLUTION ABOUT HOW TO COVER THE COSTS IT'S A WHOLE DIFFERENT WORLD IT TURNS OUT SOME INVITEES WILL NOT BE ASKED FOR 260 THERE ARE ACTUALLY A VERY LIMITED NUMBER OF PEOPLE WHO DON'T HAVE TO PAY SAYS HAJIME KITAOKA HEAD OF THE CONSULATE'S ECONOMIC SECTION OF COURSE THE EMPEROR AND EMPRESS AND DAVID ROCKEFELLER DON'T HAVE TO PAY AND MEMBERS OF THE JAPAN SOCIETY DON'T HAVE TO PAY AND SOME MEMBERS OF THE UNITED NATIONS DON'T HAVE TO PAY MEANWHILE MS VICTOR IS ESPECIALLY TAKEN ABACK BY THE IDEA THAT THE ROYALS MIGHT BE A NOSHOW THAT'S NOT TRUE SHE SAYS OR IF IT IS TRUE IT'S GOING TO THROW A LOT OF PEOPLE OFF MR KITAOKA SAYS IF THE STAR ATTRACTIONS DON'T COME THE GUESTS WILL GET A REFUND HE ALSO SAYS IF ANY MONEY IS LEFT OVER AFTER THE GALA IT WILL BE REFUNDED TO THE GUESTS THE ONES WHO HAVE TO PAY 9404220147 940422 BUSINESS BRIEF BANK OF BOSTON SHAWMUT NATIONAL POST IMPROVED EARNINGS FOR THE FIRST QUARTER BANK OF BOSTON CORP AND SHAWMUT NATIONAL CORP TWO OF NEW ENGLAND'S LARGEST BANKS REPORTED HIGHER FIRSTQUARTER EARNINGS REFLECTING REDUCED COSTS AND HIGHER NET INTEREST INCOME PROFITS ROSE 15 AT BANK OF BOSTON AND MORE THAN DOUBLED AT SHAWMUT FROM A YEAR EARLIER BUT BANK OF BOSTON'S LOANLOSS PROVISION INCREASED WHILE SHAWMUT'S LOAN PORTFOLIO ROSE JUST 1 FROM THE 1993 FOURTH QUARTER IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY BANK OF BOSTON STOCK ROSE 125 CENTS OR 05 TO CLOSE AT 25875 A SHARE WHILE SHAWMUT COMMON STOCK FELL 25 CENTS OR 11 TO 22125 FOR THE QUARTER BANK OF BOSTON POSTED NET OF 961 MILLION OR 82 CENTS A SHARE AFTER A 66 MILLION EXTRAORDINARY LOSS FOR THE EARLY EXTINGUISHMENT OF DEBT IN THE YEAREARLIER QUARTER THE BANK HAD NET OF 837 MILLION OR 72 CENTS A SHARE BANK OF BOSTON SAID IT INCREASED ITS LOANLOSS PROVISION TO 45 MILLION FROM 225 MILLION IN THE YEAREARLIER QUARTER THE INCREASE REFLECTS IN PART THE BANK'S TRANSFER OF 378 MILLION OF LOWQUALITY ASSETS TO AN ACCELERATED DISPOSITION PORTFOLIO AFTER WRITING DOWN 119 MILLION OF THE DISPOSITION PORTFOLIO THE BANK SAID THE PORTFOLIO IS NOW VALUED AT 259 MILLION THE COMPANY'S EARNINGS WERE BOLSTERED BY EXPENSE REDUCTIONS INCLUDING THE ELIMINATION OF 1200 POSITIONS OR 6 OF THE WORK FORCE NET INTEREST REVENUE ROSE 5 TO 3422 MILLION AS LOAN VOLUME INCREASED 14 TO 286 BILLION BANK OF BOSTON IS THE 19TH LARGEST BANK IN THE US WITH ASSETS OF 424 BILLION SHAWMUT BASED IN HARTFORD CONN SAID FIRSTQUARTER NET ROSE TO 668 MILLION OR 66 CENTS A SHARE FROM 297 MILLION OR 28 CENTS A SHARE IN THE YEAREARLIER PERIOD THE 1993 QUARTERLY RESULTS INCLUDED A 363 MILLION RESTRUCTURING CHARGE RELATED TO BRANCH CLOSINGS AND PERSONNEL REDUCTIONS SHAWMUT SAID ITS PROBLEM ASSETS DECLINED 14 IN THE QUARTER TO 3075 MILLION FROM THE LEVEL AT DEC 31 THE COMPANY MADE NO PROVISION FOR LOAN LOSSES IN THE QUARTER AND SAID IT DOESN'T ANTICIPATE THAT ANY PROVISIONS WILL BE NECESSARY THROUGHOUT 1994 OTHER THAN POSSIBLE PROVISIONS REQUIRED BECAUSE OF PENDING ACQUISITIONS PROVISIONS IN THE YEAREARLIER QUARTER WERE 122 MILLION SHAWMUT REPORTED THAT ITS LOAN PORTFOLIO INCREASED TO 15 BILLION FROM 1485 BILLION IN THE 1993 FOURTH QUARTER AND 147 BILLION IN THE YEAREARLIER QUARTER NET INTEREST INCOME ROSE TO 2375 MILLION FROM 2155 MILLION SHAWMUT HAS 274 BILLION IN ASSETS 9404220146 940422 INTERNATIONAL JEWS REVISIT A CITY THAT OFFERED REFUGE FAR FROM EUROPE SHANGHAI'S HONGKEW GHETTO SET UP BY THE JAPANESE REGAINS A PLACE IN HISTORY BY JOSEPH KAHN STAFF REPORTER OF THE WALL STREET JOURNAL SHANGHAI CHINA RALPH HIRSCH A BERLINBORN JEW SPENT WORLD WAR II IN A GHETTO SET UP BY NAZI ALLIES HE REMEMBERS STUDYING IN A POSH NEW SCHOOL FREQUENTING AN OUTDOOR VIENNESE CAFE PLAYING IN A JEWISH SOCCER LEAGUE AND HANGING OUT AT HIS MOTHER'S CANDY SHOP THE GHETTO WAS IN SHANGHAI THE NAZI ALLIES WERE THE JAPANESE MR HIRSCH AND 20000 OTHER JEWISH REFUGEES WHO LIVED WITHIN WALKING DISTANCE OF THE GERMAN CONSULATE PASSED THROUGH THE WAR IN A KIND OF TRANSPLANTED EUROPE THE HOLOCAUST A DISTANT NIGHTMARE MR HIRSCH JOINED A GROUP OF FORMER REFUGEES CHINESE OFFICIALS AND JEWISH LEADERS IN SHANGHAI THIS WEEK FOR THE FIRST TIME SINCE THE WAR TO RECALL THE HONGKEW GHETTO AND TO REFLECT ON AS HE PUT IT ONE OF THOSE FASCINATING EPISODES IN HISTORY UNTIL RECENTLY HOWEVER HISTORY IGNORED IT MANY REFUGEES CONSIDERED SHANGHAI MERELY A TRANSIT POINT IN THE HECTIC FLIGHT FROM NAZI RULE ALL LEFT BY 1949 CHINESE THOUGHT OF WORLD WAR II IN TERMS OF CHINESE NOT JEWISH SUFFERING THE JAPANESE PREFERRED TO FORGET THE WAR RENEWED FOCUS WORLDWIDE ON THOSE WHO HELPED SAVE JEWS FROM CONCENTRATION CAMPS CHANGED THAT CHINA AND ISRAEL AFTER YEARS OF HOSTILITY ESTABLISHED DIPLOMATIC TIES IN 1992 CHINESE SCHOLARS AND FORMER REFUGEES HAVE STARTED TO PIECE TOGETHER THE STORY OF SHANGHAI'S ROLE AS A HAVEN FOR STATELESS AND VISALESS JEWS CULMINATING IN THIS WEEK'S CEREMONY THE CHINESE GOVERNMENT WHICH TRIED TO KEEP FOREIGN REPORTERS FROM COVERING THE CEREMONIES AND SEMINARS HELD HERE FOR FEAR OF OFFENDING THE COUNTRY'S ARAB ALLIES NONETHELESS EMBRACED THE HANDFUL OF RETURNING REFUGEES SHANGHAI PEOPLE WILL NEVER FORGET THE ROLE OF JEWS IN HELPING TO BUILD OUR CITY A CHINESE OFFICIAL TOLD ABOUT 50 GUESTS AT A PRIVATE CEREMONY WE HOPE THE JEWS WILL NOT FORGET SHANGHAI WE SHARE BOTH THE TEARS AND JOYS OF SHANGHAI'S PAST A STONE TABLET UNVEILED AT A SMALL PARK IN HONGKEW AN OUTLYING DISTRICT OF SHANGHAI THAT ONCE SERVED AS THE JAPANESE CONCESSION COMMEMORATES THE ONESQUAREMILE GHETTO PRINTED IN CHINESE ENGLISH AND HEBREW IT READS DESIGNATED AREA FOR STATELESS REFUGEES WHO ARRIVED AFTER 1937 CHINA HAS NO OTHER HOLOCAUST MEMORIALS NOT WHOLLY UNLIKE OSKAR SCHINDLER'S EFFORTS TO PROTECT JEWS IN EUROPE THE HONGKEW GHETTO FOR YEARS REMAINED MOSTLY A PRIVATE MEMORY OF THOSE WHO BENEFITED IN PART THAT IS BECAUSE IT WAS A MORALLY AMBIGUOUS MATTER FEW JEWS SEE EITHER THE JAPANESE OR THE WESTERNERS WHO CONTROLLED SHANGHAI AT VARIOUS TIMES DURING THE WAR AS MORAL HEROES EXCEPT IN THE SENSE THAT THEY REJECTED NAZISM SHANGHAI WAS THE WORLD'S MOST OPEN CITY IN LARGE PART BECAUSE SEVERAL WESTERN IMPERIAL POWERS WRESTED CONTROL AWAY FROM THE CHINESE 150 YEARS AGO AFTER THE WAR REFUGEES HAD TO FLEE ONCE AGAIN FOR FEAR OF PERSECUTION BY CHINESE COMMUNISTS MORALLY IT'S A MIXEDUP AFFAIR SAID MR HIRSCH 63 YEARS OLD WHO RETURNED TO SHANGHAI THIS WEEK FOR THE FIRST TIME SINCE 1947 FROM HIS US HOME THE JAPANESE BRUTALLY SUPPRESSED THE CHINESE AND ALLIED PRISONERS BUT THEY STRENUOUSLY REJECTED NAZI DEMANDS FOR A JEWISH CONCENTRATION CAMP WE HAVE MUCH TO BE THANKFUL FOR MR HIRSCH'S FAMILY FLED BERLIN IN 1940 BY THEN THE SEA LANES WERE CLOSED SO THEY TRAVELED THROUGH MOSCOW AND ALONG THE TRANSSIBERIAN RAILROAD TO CHINA THERE THE JAPANESE CONFINED THEM TO THE SHANGHAI GHETTO BUT WITH A DIVERSE POPULATION OF EUROPEAN AND RUSSIAN JEWS MR HIRSCH THEN NINE YEARS OLD REMEMBERS HONGKEW AS COSMOPOLITAN EVEN FUN THE GHETTO HAD SEVERAL NEWSPAPERS INCLUDING ONE IN YIDDISH AN ORCHESTRA SEVERAL SCHOOLS AND A VIBRANT SHOPPING DISTRICT EVEN THE HIRSCH'S BERLIN FAMILY DOCTOR SET UP SHOP IN HONGKEW WE ALL DISPERSED AFTER THE WAR MR HIRSCH SAID BUT IT BEGAN TO GRIND ON ME WHAT WAS SHANGHAI ABOUT IN FACT JEWS HAVE A HISTORY IN SHANGHAI DATING BACK TO THE MID19TH CENTURY THE KADOORIE SASSOON AND HARDOON FAMILIES IMMENSELY WEALTHY JEWISH CLANS OF BAGHDADI ORIGIN HELPED BUILD THE CITY UNDER COLONIAL RULE THEIR LAVISH MANSIONS SYNAGOGUES AND SCHOOLS STAND AS LOCAL LANDMARKS AND THEIR INFLUENCE HELPED CLEAR THE WAY FOR WAVES OF JEWISH REFUGEES FIRST FROM RUSSIA LATER FROM EUROPE RENA KRASNO A CALIFORNIAN WHO CAME BACK TO SHANGHAI THIS WEEK FOR THE FIRST TIME SINCE THE WAR ENDED WAS BORN HERE IN 1923 HER PARENTS FLED TO SHANGHAI TO ESCAPE RUSSIAN POGROMS MS KRASNO'S 1993 BOOK STRANGERS ALWAYS BASED ON HER WARTIME DIARIES HELPED MOBILIZE SUPPORT FOR A JEWISH MEMORIAL IN THE CITY ON THIS TRIP SHE VISITED HER OLD HOME IN THE FRENCH SECTION HER FAMILY'S SUMMER RETREAT OUTSIDE THE CITY AND THE HOSPITAL WHERE SHE WAS BORN SHANGHAI WAS NOT A PARADISE SHE SAID BUT JEWS FROM EVERYWHERE ISRAEL AMERICA EUROPE OWE THEIR LIVES TO THIS PLACE 9404220145 940422 TULTEX HALTS DIVIDEND AFTER 1STQUARTER LOSS MARTINSVILLE VA TULTEX CORP WHICH REPORTED A FIRSTQUARTER LOSS IS SUSPENDING ITS DIVIDEND IN ORDER TO SAVE ABOUT 18 MILLION A QUARTER THE COMPANY'S DIVIDEND WAS FIVE CENTS A SHARE THE MANUFACTURER OF ACTIVEWEAR AND LICENSED SPORTS APPAREL REPORTED A NET LOSS OF 49 MILLION OR 18 CENTS A SHARE COMPARED WITH A NET LOSS OF 14 MILLION OR SIX CENTS A SHARE A YEAR EARLIER SALES FOR THE QUARTER FELL BY 5 TO 863 MILLION FROM 91 MILLION TULTEX SHARES FELL 625 CENTS A SHARE TO 5125 ON THE NEW YORK STOCK EXCHANGE GIVEN THE DRAMATIC DOWNTURN IN DEMAND FOR ACTIVEWEAR DURING THE FOURTH QUARTER OF 1993 OUR REDUCED OPERATING SCHEDULES AND THE RESULTING EXCESS INVENTORIES THROUGHOUT OUR INDUSTRY FIRSTQUARTER RESULTS ARE IN LINE WITH OUR EXPECTATIONS SAID JOHN FRANCK TULTEX CHAIRMAN AND CHIEF EXECUTIVE MR FRANCK ALSO SAID THE COMPANY IS LOOKING FORWARD TO SOME IMPROVEMENT LATER IN THE YEAR ALTHOUGH PROGRESS IN OVERALL EARNINGS WILL BE SLOWER TO APPEAR BECAUSE PART OF THE COMPANY'S BUSINESS IS BOOKED AT LOWER PRICES 9404220144 940422 BID BY PHILIP MORRIS HOLDERS TO CANCEL POISON PILL' RECEIVES OVER 40 OF VOTE BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL RICHMOND VA IN A SURPRISINGLY STRONG PROTEST OVER PHILIP MORRIS COS'S DEPRESSED STOCK PRICE A SHAREHOLDER PROPOSAL TO CANCEL THE COMPANY'S POISON PILL RECEIVED MORE THAN 40 OF THE VOTES CAST AT THE COMPANY'S ANNUAL MEETING THE DEFEATED PROPOSAL WAS SUBMITTED BY SHAREHOLDERS WHO CONTEND THE PHILIP MORRIS POISON PILL DEPRESSES ITS STOCK PRICE AND ENTRENCHES MANAGEMENT CHAIRMAN MICHAEL A MILES IN A RARE PUBLIC APPEARANCE SINCE THE COMPANY'S SHARE PRICE WAS BATTERED BY THE PHILIP MORRISINITIATED CIGARETTE PRICE CUTS LAST YEAR EXPRESSED DISAPPOINTMENT OVER THE STOCK'S DOLDRUMS HE BLAMED THE BARRAGE OF RECENT ATTACKS AGAINST THE INDUSTRY AND CRITICAL MEDIA REPORTS THE STOCK WHICH TRADED AS HIGH AS 77 LAST YEAR CLOSED AT 52375 DOWN 375 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY AT THE MEETING HELD AT A TIME OF INTENSE POLITICAL PRESSURE ON THE TOBACCO INDUSTRY THERE WAS KEEN SHAREHOLDER INTEREST IN THE PROSPECT OF A SPLIT OF PHILIP MORRIS'S FOOD AND TOBACCO BUSINESSES THE COMPANY DISCLOSED THAT IT WAS WEIGHING SUCH A STRATEGY LAST WEEK AND MR MILES SAID IT IS STILL UNDER CONSIDERATION BRUCE W GREGORY A PORTFOLIO MANAGER WITH PROGRESSIVE PARTNERS RYE NY WHICH OWNS 500000 SHARES OF PHILIP MORRIS HAS PLACED A 79ASHARE BREAKUP VALUE ON THE COMPANY MR GREGORY SAID HE INTENDS TO URGE MR MILES TO CONSIDER DIVIDING THE COMPANY INTO THREE BUSINESSES A GLOBAL FOOD COMPANY AN INTERNATIONAL TOBACCO COMPANY AND A DOMESTIC TOBACCO COMPANY HE NOTED THAT MR MILES SITS ON THE BOARD OF SEARS ROEBUCK & CO WHICH HAS GONE THOUGH A SIMILAR RESTRUCTURING TO INCREASE SHAREHOLDER VALUE THE ANNUAL MEETING YESTERDAY WAS HELD IN A SMOKEFILLED AUDITORIUM WITHIN THE FRIENDLY CONFINES OF THE COMPANY'S MAIN TOBACCO PLANT HERE IT WAS THE SAME PLANT THAT PHILIP MORRIS RECENTLY SHUT DOWN FOR A DAY TO SEND ITS WORKERS TO WASHINGTON DC TO PROTEST A PROPOSED 75CENTSAPACK INCREASE IN THE CIGARETTE TAX SEVERAL EMPLOYEES IN THE AUDIENCE WORE CAPS BEARING THE SLOGAN NO TAX INCREASE DESPITE THE FRIENDLY HOMETOWN VENUE PHILIP MORRIS FOR THE FIRST TIME REQUIRED SHAREHOLDERS TO PASS THROUGH AN AIRPORTSTYLE METAL DETECTOR TO ENTER THE MEETING THE COMPANY GROUNDS WERE PATROLLED BY PINKERTON GUARDS WITH WALKIETALKIES A SPOKESMAN SAID THE METAL DETECTOR WAS AN ADDED PRECAUTION TO PROTECT SHAREHOLDERS THEY ARE UNDER SEIGE SAID DR GREGORY CONNOLLY AN ANTISMOKING ACTIVIST WHO ARGUED AT THE MEETING THAT PENSION FUNDS SHOULD RECONSIDER THEIR INVESTMENTS IN PHILIP MORRIS FRESH ALLEGATIONS OF NICOTINE MANIPULATION ALSO EMERGED AT THE MEETING ANNE MORROW DONLEY A SHAREHOLDER AND ANTISMOKING ACTIVIST WHO WORKS WITH FORMER PHILIP MORRIS SCIENTISTS CHARGED THAT PHILIP MORRIS DURING MANUFACTURING HAS SOAKED TOBACCO STEMS IN NICOTINE EXTRACT THE COMPANY DENIES THE CHARGE MS DONLEY ALSO SAID THAT IN PURSUIT OF A SAFER CIGARETTE THE COMPANY HAS DEVELOPED A TOBACCO PLANT THAT DOESN'T CONTAIN NICOTINE PHILIP MORRIS SAID IT IS CLOSE TO PUBLISHING A RESEARCH PAPER ON ITS NICOTINEFREE PLANT RESEARCH 9404220143 940422 INTERNATIONAL LLOYDS BANK OFFERS TO BUY BRITISH THRIFT BY RICHARD L HUDSON AND NICHOLAS BRAY STAFF REPORTERS OF THE WALL STREET JOURNAL LONDON IN A MOVE THAT WOULD TEAR DOWN WALLS BETWEEN BRITAIN'S ONCESEPARATE BANKING AND THRIFT INDUSTRIES LLOYDS BANK PLC PROPOSED A BIG EXPANSION INTO THE MORTGAGE BUSINESS BY OFFERING TO BUY CHELTENHAM & GLOUCESTER BUILDING SOCIETY FOR 18 BILLION 268 BILLION THE PROPOSED FRIENDLY COMBINATION BETWEEN BRITAIN'S FOURTHBIGGEST BANK AND SIXTHBIGGEST SAVINGS INSTITUTION THOUGH NOT ENTIRELY UNEXPECTED SENT SHOCK WAVES THROUGH LONDON'S FINANCIAL DISTRICT WHILE BRITISH BANKS AND THRIFTS HAVE BEEN POACHING ON EACH OTHER'S TURFS LATELY A LLOYDSC&G COMBINATION WOULD BE THE FIRST OUTRIGHT MERGER OF A BRITISH THRIFT AND COMMERCIAL BANK IF IT CLEARS BRITISH REGULATORS AND COURTS MORE SUCH MERGERS ARE EXPECTED EVERY BOARD OF EVERY BANK IN THE UK AND EVERY MERGERS AND ACQUISITIONS TEAM AT EVERY INVESTMENT BANK IS GOING TO BE STUDYING THIS DEAL SAID ROD BARRETT AN ANALYST AT GOLDMAN SACHS & CO'S LONDON OFFICE LLOYDS SHARES JUMPED 48 PENCE A SHARE TO 585 PENCE APIECE ON LONDON'S STOCK EXCHANGE AS ANALYSTS APPLAUDED THE PROPOSED ACQUISITION PREDICTING IT MIGHT BOOST THE BANK'S FUTURE EARNINGS PER SHARE BY 10 TO 12 IF THE DEAL GOES THROUGH LLOYDS WOULD BE BUYING ONE OF THE NATION'S MOST HIGHLY REGARDED BUILDING SOCIETIES AS THRIFTS ARE KNOWN IN BRITAIN WITH AMONG THE LOWEST COSTS HIGHEST PROFITS AND WEALTHIEST CLIENTELES BASED ON THEIR BALANCE SHEETS LAST DEC 31 THE COMBINED FINANCIAL INSTITUTIONS WOULD HAVE HAD TOTAL ASSETS OF 9746 BILLION PRETAX PROFITS OF 12 BILLION AND 2166 BRANCHES AND OTHER OUTLETS THEIR RATIO OF THEIR COMBINED SHARE CAPITAL AND RESERVES TO THEIR OUTSTANDING LOANS AND OTHER BANKING BUSINESS WOULD HAVE BEEN 109 WELL ABOVE THE MINIMUM 8 REQUIRED IN THE UK WITH ARMOR TO WITHSTAND PRICE WAR BY CONTRAST STOCK PRICES OF MANY OTHER BANKS SLIPPED AS SOME ANALYSTS BEGAN FORECASTING A MORTGAGE PRICE WAR THAT LLOYDS WOULD WEATHER BEST UNDER THE TERMS OF LLOYDS'S OFFER THE APPROXIMATELY ONE MILLION SAVINGSACCOUNT HOLDERS AT C&G AS OF LAST DEC 31 WILL GET A 500 CASH PAYMENT IN ADDITION THEY WILL GET A SUM EQUAL TO 10 OF THEIR DEPOSITS UP TO A MAXIMUM PAYOUT OF 10000 THE PAYMENT WILL BE BASED ON THEIR DEPOSITS MARCH 31 THIS YEAR OR NEXT DEPENDING ON WHICH IS LOWEST THAT WORKS OUT TO AN AVERAGE OF 1700 EACH DEPOSITORS BENEFIT BECAUSE AS IN US SAVINGS AND LOAN ASSOCIATIONS THEY ARE THE LEGAL OWNERS OF UK BUILDING SOCIETIES THEY WON'T BE THE ONLY BENEFICIARIES THOUGH C&G'S EMPLOYEES AND PENSIONERS WILL ALSO GET MINIMUM 500 PAYOUTS AS WILL ANYONE HOLDING A MORTGAGE AT THE SOCIETY WHEN THE TRANSACTION IS COMPLETED NEXT YEAR CURRENTLY C&G HAS 370000 BORROWERS 9404220142 940422 WHO'S NEWS ONEOK INC ONEOK INC TULSA OKLA FRANK W SCHEMM FORMERLY A VICE PRESIDENT OF THE OKLAHOMA NATURAL GAS CO SUBSIDIARY OF THIS ENERGY CONCERN WAS NAMED VICE PRESIDENT BUSINESS DEVELOPMENT OF THE PARENT A NEW POSITION MR SCHEMM 59 YEARS OLD IS SUCCEEDED AT OKLAHOMA NATURAL GAS BY ROY L CLYMER 56 WHO HAD BEEN MANAGER OF MARKETING IN OKLAHOMA CITY FOR THE UTILITY 9404220141 940422 TECHNOLOGY APPLE EARNINGS PLUNGED 84 IN ITS 2ND PERIOD BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL APPLE COMPUTER INC SQUEEZED BY LOWER MARGINS AND A SALES SLOWDOWN SAID EARNINGS PLUNGED 84 IN THE FISCAL SECOND QUARTER AS IT BEGAN A DIFFICULT TRANSITION TO A NEW LINE OF MACINTOSH PERSONAL COMPUTERS THE EARNINGS OF 174 MILLION OR 15 CENTS A SHARE IN THE PERIOD THAT ENDED APRIL 1 CAME ON REVENUE OF 208 BILLION A MEAGER SHOWING THAT REFLECTS THE DIFFICULTY MANY PC MAKERS ARE HAVING IN MAKING MONEY ON AN INCREASINGLY LOWMARGIN BUSINESS APPLE'S OWN MARGINS HAVE PLUNGED FROM THE YEAREARLIER PERIOD WHEN IT EARNED 1109 MILLION OR 92 CENTS A SHARE ON REVENUE OF 197 BILLION THE QUARTER PROVIDED SOME HOPE FOR THE FUTURE HOWEVER APPLE SAID IT SHIPPED 145000 OF ITS NEW POWER MACINTOSH COMPUTERS WHICH ANALYSTS SAY IS A RESPECTABLE PERFORMANCE CONSIDERING THOSE COMPUTERS ONLY HIT THE MARKET MARCH 14 AT THAT LAUNCH APPLE OFFICIALS SAID THEY HAD BOOKED ORDERS FOR 150000 OF THE POWER MACS SO THE INDICATED RESULTS APPEAR IN LINE WITH THE COMPANY'S EXPECTATIONS IN ALL THE COMPANY HOPES TO SHIP ONE MILLION POWER MACINTOSHES BY NEXT MARCH AS IT WORKS TO MOVE ITS ENTIRE MACINTOSH LINE OF COMPUTERS TO A NEW MICROPROCESSOR OR BRAIN OF THE COMPUTER CALLED POWERPC WE ARE VERY PLEASED WITH THE EARLY ACCEPTANCE OF POWER MACINTOSH SAID MICHAEL SPINDLER APPLE'S PRESIDENT AND CHIEF EXECUTIVE OFFICER STILL SOME ANALYSTS THINK APPLE COULD WELL LOSE GROUND THIS YEAR TO HARDCHARGING RIVALS SUCH AS COMPAQ COMPUTER CORP THE HOUSTONBASED PC POWERHOUSE THAT ANALYSTS BELIEVE WILL SURPASS CUPERTINO CALIFBASED APPLE THIS YEAR TO BECOME THE WORLD'S NO 2 PC MAKER WHILE MR SPINDLER HAS PREDICTED BIG MARKET SHARE GAINS FOR APPLE IN THE YEARS AHEAD SOME ANALYSTS THINK THE COMPANY WILL MORE LIKELY HOLD ITS ROUGHLY 11 GLOBAL SHARE IF THEY CAN GET THROUGH THE POWER MAC TRANSITION WHICH I THINK IS HIGHLY LIKELY I THINK THEY CAN REMAIN IN THE TOP TIER AS A PC SUPPLIER SAID BILL ABLONDI VICE PRESIDENT OF BIS STRATEGIC DECISIONS A MARKET RESEARCH AND CONSULTING FIRM IN NORWELL MASS THOUGH THE QUARTERLY RESULTS FELL A BIT BELOW SOME ANALYSTS' EXPECTATIONS WHICH RANGED WIDELY BETWEEN 10 CENTS AND 34 CENTS A SHARE MR ABLONDI SAID THE PERIOD SHOULD BE VIEWED AS A SUCCESS BECAUSE SALES DID NOT COLLAPSE DURING THE TRANSITION TO POWER MACINTOSH IN THE MONTHS PRECEDING THE POWER MACINTOSH LAUNCH SOME ANALYSTS HAD FEARED THAT WOULD HAPPEN INDEED APPLE SAID SALES DID SLUMP BY AN UNSPECIFIED AMOUNT DURING JANUARY AND FEBRUARY AS SOME CUSTOMERS POSTPONED PURCHASES UNTIL THE NEW COMPUTERS CAME OUT BUT COMPANY OFFICIALS SAID POWER MAC SHIPMENTS STARTED OUT SO STRONG THAT APPLE'S REVENUE ENDED UP SLIGHTLY AHEAD OF A YEAR AGO DISTRIBUTORS RECENTLY REPORTED THEY ARE STILL SEEING STRONG DEMAND FOR POWER MACINTOSHES AND THAT SALES WOULD LIKELY CONTINUE TO INCREASE AS NEW SOFTWARE PROGRAMS WRITTEN FOR THE POWERPC CHIP COME OUT LATER THIS YEAR WITH THE FULL SAVINGS FROM APPLE'S COSTCUTTING EFFORTS STILL NOT ALL KICKED IN ANALYSTS THINK THE COMPANY'S EARNINGS SHOULD REBOUND LATER IN THE YEAR THE RESULTS WERE RELEASED AT THE CLOSE OF MOST MAJOR FINANCIAL MARKETS YESTERDAY APPLE'S STOCK CLOSED AT 29625 UP 1375 IN NASDAQ STOCK MARKET TRADING 9404220140 940422 THURSDAY'S MARKETS STOCKS BONDS RALLY TECHNOLOGY SECTOR SOARS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL A SURGE IN TECHNOLOGY STOCKS AND BOND PRICES SPARKED A STOCKMARKET RALLY THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE SOARED 5383 POINTS TO 365254 STANDARD & POOR'S 500STOCK INDEX JUMPED 677 TO 44873 AND THE NASDAQ COMPOSITE INDEX CLIMBED 1322 TO 71874 TECHNOLOGY AND COMPUTER STOCKS BARRELED HIGHER FOLLOWING THE LEAD OF INTERNATIONAL BUSINESS MACHINES WHICH JUMPED 6 1/8 OR 12 TO 58 3/8 AFTER REPORTING STRONG FIRSTQUARTER EARNINGS IBM ACCOUNTED FOR MORE THAN 14 POINTS OF THE DOW JONES INDUSTRIALS' ADVANCE IBM JUST IGNITED THE MARKET SAID DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS THE POSITIVE REACTION TO UPBEAT EARNINGS REPORTS MARKS A CHANGE FROM RECENT DAYS WHEN SOME STOCKS INCLUDING CATERPILLAR AND CHRYSLER WERE CLOBBERED AFTER ANNOUNCING BETTERTHANEXPECTED PROFITS MAYBE WE'RE NOW GETTING A REACTION TO GOOD EARNINGS AND STRONG FUNDAMENTALS BUT ON A MUCHDELAYED BASIS SAID ROBERT N STREED SENIOR INVESTMENT COUNSELOR AT NORTHERN TRUST IN CHICAGO MR SHULMAN SAID INVESTORS RACED BACK INTO STOCKS THAT RECENTLY HAVE BEEN PUMMELED SUCH AS MOTOROLA WHICH GAINED 2 5/8 TO 46 1/8 MOTOROLA HAD PLUNGED 18 SINCE REPORTING ITS FIRSTQUARTER EARNINGS ON APRIL 11 INVESTORS ALSO RETURNED TO TELEFONOS DE MEXICO IN A BIG WAY DRIVING THE PRICE UP 3 1/2 TO 54 7/8 ON TRADING VOLUME OF MORE THAN 10 MILLION SHARES THE MOST OF ANY STOCK YESTERDAY ANALYSTS SAID THE STOCK MARKET WAS DUE FOR A REBOUND AFTER ITS RECENT DISMAL PERFORMANCE THE INDUSTRIAL AVERAGE TOPPED OFF ITS DAY BY CLOSING AT ITS HIGH FOR THE SESSION NASDAQ STOCKS HAD A HEALTHY RECOVERY AFTER THE COMPOSITE INDEX SANK WEDNESDAY TO ITS LOWEST LEVEL SINCE JULY THERE'S QUITE A SIGH OF RELIEF THAT WE CAN HAVE THIS KIND OF REBOUND SAID MR STREED BUT I'M AFRAID IT'S JUST A BOUNCE AND NOT ENOUGH TO FULLY RECOVER FROM THE DAMAGE THAT'S BEEN DONE THOUGH SOME ECONOMICALLY SENSITIVE STOCKS SUCH AS AUTOS BOUNCED BACK VIGOROUSLY INVESTORS ALSO CONTINUED TO PILE INTO CONSUMER NONDURABLES IN FEAR THAT HIGHER INTEREST RATES WILL EVENTUALLY CRIMP ECONOMIC GROWTH MR STREED SAID HE WAS ESPECIALLY PLEASED TO SEE THAT THE REBOUND IN THE DOW JONES UTILITY AVERAGE WAS CONTINUING THE UTILITY AVERAGE IS OFTEN AN INDICATOR OF FUTURE BONDMARKET PERFORMANCE AND THEREFORE STOCKMARKET ACTION THE INDICATOR GAINED 152 TO 20116 MR STREED ARGUED THAT CLOSING ABOVE 200 WAS SIGNIFICANT ON A TECHNICAL BASIS THERE'S A BETTER THAN EVEN CHANCE THAT WE ARE SEEING AT LEAST AN INTERMEDIATETERM BOTTOM IN THE UTILITIES HE SAID HOPES OF SLOWER GROWTH HELPED FEED THE BONDMARKET RALLY BOND INVESTORS GOT SOME ECONOMIC NEWS YESTERDAY TO NOURISH THOSE HOPES THE FEDERAL RESERVE BANK OF PHILADELPHIA RELEASED ITS APRIL BUSINESS SURVEY THAT SHOWED A SLOWER PACE OF GROWTH IN THE REGION'S MANUFACTURING SECTOR ALSO THE LABOR DEPARTMENT REPORTED THAT INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS ROSE UNEXPECTEDLY LAST WEEK TO A TWOMONTH HIGH THE BOND MARKET IGNORED EVIDENCE OF RISING INFLATION IN THE PHILADELPHIA FED SURVEY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 023 TO 11275 IN MAJOR MARKET ACTION STOCK PRICES SOARED VOLUME TOTALED 3786 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1573 ISSUES ROSE AND 704 FELL BOND PRICES SURGED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN 1 1/8 POINT OR MORE THAN 1125 FOR EACH 1000 FACE AMOUNT TO YIELD 721 THE DOLLAR ROSE IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16910 MARKS AND 10365 YEN COMPARED WITH 16883 MARKS AND 10303 YEN WEDNESDAY 9404220139 940422 ECONOMY ROSTENKOWSKI SEEKS BROADBASED TAX TO HELP PAY FOR HEALTHCARE REFORM BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI IS SIGNALING SUPPORT FOR A BROADBASED TAX TO HELP FINANCE HEALTHCARE REFORM AT LEAST DURING ITS EARLY YEARS THE HOUSE CHAIRMAN REMAINS COMMITTED TO PRESIDENT CLINTON'S GOAL OF PROVIDING HEALTH INSURANCE FOR ALL AMERICANS AND LIKE THE ADMINISTRATION HE WOULD REQUIRE EMPLOYERS TO HELP PAY FOR THEIR WORKERS' COVERAGE BUT IN CRAFTING A BILL IN HIS COMMITTEE THE ILLINOIS DEMOCRAT FAVORS A MORE AGGRESSIVE GOVERNMENT APPROACH TO ADDRESSING THE COSTS OF HEALTH REFORM AND THE PROBLEM OF COVERING THE UNEMPLOYED MR ROSTENKOWSKI IS OPENLY SYMPATHETIC TO THE IDEA OF ESTABLISHING A MEDICARELIKE OPTION TO PROVIDE COVERAGE FOR THE JOBLESS FOR EXAMPLE AND WHILE HE HAS YET TO SETTLE ON A FINAL TAX PROPOSAL HE IS SEEKING A BROADBASED ALTERNATIVE TO FILL A BUDGET GAP THAT IS EXPECTED TO ARISE BEFORE MEASURES TO CONTAIN OVERALL HEALTH EXPENDITURES FULLY TAKE EFFECT THE CHICAGO DEMOCRAT IS SLATED TO OUTLINE HIS IDEAS IN A SPEECH TODAY BEFORE THE HARVARD SCHOOL OF PUBLIC HEALTH IN BOSTON WHILE NO WAYS AND MEANS COMMITTEE ACTION WILL COME FOR WEEKS THE FORUM IS AN OPPORTUNITY FOR THE CHAIRMAN TO BEGIN TESTING HIS VIEWS PUBLICLY AFTER HOLDING PRIVATE CAUCUSES WITH COMMITTEE DEMOCRATS MR ROSTENKOWSKI FEARS COMPLICATING THE DEBATE BY INTRODUCING AN ENTIRELY NEW VALUEADDED TAX SUCH AS SOME DEMOCRATS HAVE FAVORED IN THE PAST BUT HE HOPES HIS COMMITTEE CAN AVOID A COMPILATION OF SMALLER TAXES AND INSTEAD REACH CONSENSUS ON A LEVY BROAD ENOUGH TO DISTRIBUTE THE IMPACT AMONG AS MANY HOUSEHOLDS AS POSSIBLE IN HIS REMARKS TODAY HE ISN'T EXPECTED TO SPELL OUT ANY SPECIFIC OPTIONS BUT BY HIS DEFINITION A BROADBASED TAX COULD INCLUDE FOR EXAMPLE INCOMETAX RATE CHANGES OR A TEMPORARY SURTAX THE REVENUE QUESTION IS PIVOTAL TO HEALTHCARE REFORM IT HINGES IN PART ON HOW THE CONGRESSIONAL BUDGET OFFICE EVALUATES COMPETING EFFORTS TO CONTROL HEALTHCARE EXPENDITURES SAVINGS ARE CRUCIAL TO FINANCING SUBSIDIES NEEDED TO EXTEND COVERAGE TO LOWWAGE AND UNEMPLOYED WORKERS CONSERVATIVES IN BOTH PARTIES ARGUE THAT PRICECONTROLS PROPOSED BY THE CLINTON ADMINISTRATION ARE TOO SEVERE AND WOULD DAMAGE THE CURRENT HEALTHCARE SYSTEM IN THE DEBATE OVER CONTROLLING HEALTH COSTS PEOPLE FAVORING A MORE MARKETORIENTED MANAGED COMPETITION APPROACH ALREADY HAVE WON THE BATTLE OF IDEAS IN MANY RESPECTS AND THEY SEEM ASSURED OF A CHANCE TO PUT THEIR THEORIES TO A TEST THE BIG REMAINING QUESTIONS ARE HOW MANY YEARS THE MARKET APPROACH WILL BE GIVEN TO PROVE ITSELF AND WHETHER GOVERNMENT REGULATIONS WILL BE APPROVED AS A FALLBACK OPTION IN CASE MARKET FORCES DON'T SUCCEED THE CONGRESSIONAL BUDGET OFFICE IS RELUCTANT TO PROJECT THAT THE MARKET APPROACH WILL ACHIEVE LARGE SAVINGS AS A RESULT THE MORE TIME MANAGED COMPETITION IS GIVEN TO WORK THE LESS MONEY IS PROJECTED TO BE AVAILABLE TO PAY FOR UNIVERSAL HEALTH COVERAGE ONE SOLUTION TO THIS DILEMMA WOULD BE TO MOVE THE NATION GRADUALLY TOWARD BROADER COVERAGE ONLY AS SAVINGS ARE ACHIEVED BUT MR ROSTENKOWSKI APPEARS WILLING INSTEAD TO USE A BROAD TAX UPFRONT TO CLOSE THE DEFICIT GAP UNTIL COSTCONTAINMENT TAKES EFFECT THE WAYS AND MEANS CHAIRMAN ARGUES FOR UNIVERSAL COVERAGE FROM BOTH A LIBERAL AND CONSERVATIVE STANDPOINT HIS THINKING SUGGESTS THE INFLUENCE OF WILLIS GRADISON A FORMER REPUBLICAN CONGRESSMAN FROM OHIO AND MEMBER OF THE WAYS AND MEANS PANEL WHO NOW REPRESENTS THE INSURANCE INDUSTRY MR GRADISON ARGUES THAT POPULAR INSURANCE REFORMS SUCH AS ENABLING WORKERS TO KEEP INSURANCE IF THEY CHANGE JOBS WILL ONLY BE EFFECTIVE IF UNIVERSAL COVERAGE ALSO IS ACHIEVED THE RELATIONSHIP BETWEEN MR ROSTENKOWSKI AND THE FORMER REPUBLICAN IS IMPORTANT AS DEMOCRATS TEST WHETHER THEY CAN REACH OUT FOR GOP VOTES FOR A HEALTH BILL SO FAR THE HOUSE REPUBLICAN LEADERSHIP CITING SMALLBUSINESS OPPOSITION TO REQUIRING EMPLOYERS TO HELP PAY FOR THEIR WORKERS' COVERAGE HAS SOUGHT TO PULL CONSERVATIVE DEMOCRATS OVER TO A MORE MODEST BILL BACKED BY REPS ROY ROWLAND D GA AND MICHAEL BILIRAKIS R FLA THAT WOULD ATTEMPT TO ACHIEVE INSURANCE REFORMS WITHOUT THE AMBITIOUS GOAL OF UNIVERSAL COVERAGE THIS STRATEGY IS DESIGNED TO SLOW THE DEMOCRATS' PROGRESS IN HOPES OF FORCING NEGOTIATIONS BETWEEN THE TWO PARTIES ASIDE FROM THE WAYS AND MEANS COMMITTEE THE HOUSE ENERGY AND COMMERCE COMMITTEE WILL BE A MAJOR BATTLEGROUND IN THE COMING MONTH DEMOCRATIC REP JAMES SLATTERY WHO IS RUNNING FOR GOVERNOR IN KANSAS IS SKITTISH ABOUT ENDORSING A HEALTHREFORM BILL BEING SHAPED BY ENERGY AND COMMERCE CHAIRMAN JOHN DINGELL D MICH WITHOUT MR SLATTERY'S SUPPORT OR ANY REPUBLICAN HELP MR DINGELL WILL BE HARDPRESSED TO GET THE VOTES NEEDED TO ADVANCE THE BILL IN RECENT DAYS HE HAS SOUGHT TO EXPAND HIS SEARCH TO INCLUDE MEETINGS WITH OTHER CONSERVATIVE DEMOCRATS INCLUDING REPS JIM COOPER OF TENNESSEE AND RALPH HALL OF TEXAS AN AIDE TO MR SLATTERY SAID LAST NIGHT THAT THE CONGRESSMAN WOULDN'T SUPPORT THE LATEST DRAFT OF THE DINGELL BILL WHICH ALREADY MAKES SIGNIFICANT CONCESSIONS TO SMALL BUSINESS ON THE QUESTION OF EMPLOYER CONTRIBUTIONS INSTEAD MR SLATTERY SEEMS BENT ON CRAFTING HIS OWN ALTERNATIVE WITHOUT SUCH SOCALLED EMPLOYER MANDATES 9404220138 940422 WHO'S NEWS COCACOLA'S GOIZUETA AGREES TO REMAIN BEYOND PLANNED RETIREMENT DATE IN '96 BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA COCACOLA CO SAID ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER ROBERTO C GOIZUETA HAS AGREED TO STAY ON FOR AN INDEFINITE PERIOD BEYOND NOVEMBER 1996 WHEN HE TURNS 65 AND WAS DUE TO RETIRE I AM PLEASED THAT THE BOARD HAS GIVEN ME THE OPPORTUNITY TO EXTEND MY TENURE MR GOIZUETA SAID IN A NEWS RELEASE I LOOK FORWARD TO CONTINUING TO WORK FOR YEARS TO COME THE BOARD'S REQUEST THAT HE STAY ON REFLECTS ITS CONFIDENCE IN MR GOIZUETA WHO HAS BEEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SINCE MARCH 1981 OVERSEEING THE COMPANY THROUGH AN UNUSUALLY SUCCESSFUL PERIOD IN ITS HISTORY THE CHANGE ALSO REFLECTS CONTINUING UNCERTAINTIES ABOUT SUCCESSION AT A TIME WHEN THE COMPANY FACES SOME BIG CHALLENGES BOTH AT HOME AND ABROAD LAST YEAR THE COMPANY LOST DONALD R KEOUGH ITS CHARISMATIC PRESIDENT ITS NO 1 SALESMAN AND PERHAPS THE MOST VISIBLE MEMBER OF ITS MANAGEMENT TEAM TO RETIREMENT MR KEOUGH WHO DELAYED HIS RETIREMENT BY TWO YEARS AND MR GOIZUETA HAD BEEN SEEN AS THE DYNAMIC DUO THAT HAD LED THE COMPANY THROUGH AN AGGRESSIVE OVERSEAS EXPANSION SEVERAL BIG NEW PRODUCT INTRODUCTIONS AND A PERIOD OF TREMENDOUS STOCK GROWTH IN THE 1980S SINCE THEN THERE HAS BEEN MUCH SPECULATION ABOUT HOW COKE WOULD FILL THE VOID THERE'S NO ONE LIKE KEOUGH IN TERMS OF KEOUGH BEING A SUPERSALESMAN OR AMBASSADORATLARGE SAID DONALD MCHENRY A COKE BOARD MEMBER AND A PROFESSOR OF DIPLOMACY AT GEORGETOWN UNIVERSITY AT THE TIME OF MR KEOUGH'S RETIREMENT THE COMPANY NAMED M DOUGLAS IVESTER 47 TO THE POSTS OF EXECUTIVE VICE PRESIDENT AND PRINCIPAL OPERATING OFFICER/NORTH AMERICA AND JOHN HUNTER 56 TO THE POSTS OF EXECUTIVE VICE PRESIDENT AND PRINCIPAL OPERATING OFFICER/INTERNATIONAL THE TWO MEN HAVE BEEN WIDELY REGARDED BY INSIDERS TO BE IN A SUCCESSION HORSERACE WITH MR IVESTER AS THE CLEAR FRONTRUNNER TO SUCCEED MR GOIZUETA BUT THE CHAIRMAN AND CHIEF EXECUTIVE HASN'T OFFICIALLY DESIGNATED A SUCCESSOR I DON'T EVEN KNOW IF IT'S BETWEEN THE TWO MR GOIZUETA SAID WHEN ASKED ABOUT THE SUCCESSION ISSUE LAST YEAR AND THOUGH MR IVESTER IS KNOWN FOR HIS FINANCIAL ACUITY HE DOESN'T HAVE EITHER THE MARKETING EXPERIENCE OR THE SHOWMANSHIP THAT MR KEOUGH HAD FORMER EXECUTIVES SAID THERE IS HUGE UNCERTAINTY ABOUT A SUCCESSOR SAYS ONE FORMER EXECUTIVE NEITHER MR GOIZUETA NOR MR IVESTER COULD BE REACHED FOR COMMENT TWO OF THE COMPANY'S BOARD MEMBERS SAID THE DECISION DOESN'T KNOCK ANYONE OUT OF THE RUNNING FOR THE JOB THIS DOESN'T AFFECT ANYBODY EXCEPT ROBERTO MR MCHENRY SAID WE'VE GOT A WINNING TEAM AND WE DON'T WANT TO MESS WITH IT SAID JAMES WILLIAMS A COKE BOARD MEMBER AND CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SUNTRUST BANKS INC BEVERAGE ANALYSTS AND CONSULTANTS SAID THE ANNOUNCEMENT WHILE NOT EXPECTED CAME WITH LITTLE SURPRISE GIVEN MR GOIZUETA'S PERFORMANCE AT COKE AND HIS OBVIOUS LOVE OF THE JOB THERE'S BEEN THIS INTEGRATION OF HIM AND HIS PERSONALITY AND THE WAY HE RUNS THE BUSINESS IT HAPPENED WITH CHRYSLER AND LEE IACCOCCA SAID TOM PIRKO A CONSULTANT WITH BEVMARK INC MOST SAID THE MOVE WOULD BE A BOON FOR THE COMPANY THE NEWS GAVE A LIFT TO THE COMPANY'S STOCK PRICE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE COKE SHARES CLOSED AT 4050 UP 625 CENTS IT WAS INEVITABLE THAT OVER THE NEXT 12 TO 18 MONTHS SPECULATION ON SUCCESSION WOULD BEGIN TO RISE SAID MARC COHEN AN ANALYST WITH GOLDMAN SACHS & CO THIS COULD BE A PREEMPTIVE MOVE TO PREVENT THAT FROM GETTING IN THE WAY OF RUNNING THE BUSINESS AS FOR MESSRS IVESTER AND HUNTER THIS GIVES THEM TIME FOR A LITTLE MORE SEASONING SAID MICHAEL BELLAS PRESIDENT OF CONSULTING FIRM BEVERAGE MARKETING CORP THAT COULD PROVE ESPECIALLY IMPORTANT AS THE COMPANY FACES BIG CHALLENGES TO GROWTH OVERSEAS AND AT HOME ALTHOUGH MR GOIZUETA HAS CONSISTENTLY SAID COKE PLANS TO ACHIEVE 8 TO 10 VOLUME GROWTH OVERSEAS WHERE IT EARNS 80 OF ITS PROFITS THE COMPANY POSTED 6 OVERSEAS GROWTH LAST YEAR AS VOLUME STAGNATED IN BIG PROFIT CENTERS SUCH AS JAPAN AND WESTERN EUROPE IN THE US COKE IS TURNING SOMERSAULTS TO COME UP WITH SNAZZY NEW MARKETING INITIATIVES LIKE CHANGES IN PACKAGING AND NEW ALTERNATIVE DRINK LINES AS INDUSTRY GROWTH IN COLAS AND DIET COLAS SLOWS HELENE COOPER CONTRIBUTED TO THIS ARTICLE 9404220137 940422 SMALL STOCK FOCUS BOND RALLY RISE IN TECHNOLOGY ISSUES HELP MARKET PULL OUT OF LOSING STREAK BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK A SURGE IN BOND PRICES AND A SHARP BOUNCE IN THE TECHNOLOGY SECTOR SNAPPED THREE BACKTOBACK SESSIONS OF LOSSES FOR SMALLCOMPANY STOCKS THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION ISSUES JUMPED 318 OR 131 TO 24532 THE NASDAQ COMPOSITE INDEX LEAPED 1322 OR 187 TO 71874 BOTH INDEXES HAD PLUNGED WEDNESDAY TO THEIR LOWEST LEVELS SINCE LAST SUMMER ADVANCING NASDAQ STOCKS TOPPED DECLINERS 1844 TO 1219 ON NATIONAL MARKET VOLUME OF 295730800 SHARES AND TOTAL VOLUME OF 341226000 ON WEDNESDAY NATIONAL MARKET VOLUME WAS 300457700 SHARES AND OVERALL VOLUME 335340000 BONDS ROSE FOR A THIRD STRAIGHT DAY THE TREASURY 30YEAR ISSUE SOARED MORE THAN 1 1/8 POINTS LOWERING ITS YIELD TO 721 THE TECHNOLOGY SECTOR WAS BUOYED BY FIRSTQUARTER EARNINGS FROM INTERNATIONAL BUSINESS MACHINES CORP WHICH ROSE 6 1/8 TO 58 3/8 ON THE NEW YORK STOCK EXCHANGE IBM HELPED THE DOW JONES INDUSTRIAL AVERAGE SURGE MORE THAN 53 POINTS AMONG SMALLER TECHNOLOGY STOCKS LTX A WESTWOOD MASS SEMICONDUCTOR EQUIPMENT FIRM ZOOMED UP 3/8 TO 2 9/16 LEVEL ONE COMMUNICATIONS A FOLSOM CALIF INTEGRATED CIRCUIT CONCERN ADDED 2 3/4 TO 20 AND MCAFEE ASSOCIATES A SANTA CLARA CALIF SOFTWARE FIRM FORGED 7/8 HIGHER TO 7 7/8 IN EARNINGS NEWS WALL DATA REDMOND WASH SURGED 7 OR 22 TO 38 1/2 THE SOFTWARE DEVELOPER SAID LATE WEDNESDAY THAT IT HAD FIRSTQUARTER OPERATING NET OF 20 CENTS A SHARE COMPARED WITH NET INCOME OF 13 CENTS IN THE SAME PERIOD LAST YEAR NETWORTH INC CLIMBED 1 3/4 TO 11 1/4 ON FISCAL THIRDQUARTER EARNINGS OF 14 CENTS A SHARE COMPARED WITH A LOSS OF 11 CENTS A YEAR EARLIER THE IRVING TEXAS COMPANY DEVELOPS PRODUCTS FOR LOCAL AREA NETWORKS CONTROL DATA SYSTEMS MOVED UP 1 7/8 TO 10 1/8 THE ARDEN HILLS MICH COMPUTER SYSTEMS SUPPLIER'S FIRSTQUARTER EARNINGS EXCEEDED ANALYSTS' FORECASTS MATCHING THE 10 CENTS A SHARE POSTED LAST YEAR TRICORD SYSTEMS IMPROVED 7/8 TO 13 3/8 THE PLYMOUTH MINN DESIGNER OF NETWORK SUPERSERVERS POSTED FIRSTQUARTER EARNINGS OF 21 CENTS A SHARE UP FROM EIGHT CENTS REPORTED A YEAR EARLIER LEHMAN BROTHERS ANALYST DON YOUNG UPGRADED TRICORD TO OUTPERFORM FROM NEUTRAL MR YOUNG ALSO RAISED HIS RATING ON NETFRAME SYSTEMS INC TO BUY FROM NEUTRAL SHARES OF THE MILPITAS CALIF SUPERSERVERS DEVELOPER ROSE 3/4 TO 9 3/4 IN MERGER NEWS PEOPLES TELEPHONE MIAMI GOT A 3 1/8POINT LIFT TO 12 7/8 FOLLOWING AN ANNOUNCEMENT THAT IT WILL COMBINE WITH IDB COMMUNICATIONS GROUP IN A STOCK SWAP IDB COMMUNICATIONS CULVER CITY CALIF EASED 1/2 TO 15 CCUBE MICROSYSTEMS A NEW ISSUE JUMPED TO 17 3/4 FROM ITS OFFERING PRICE OF 15 THE MILPITAS CALIF COMPANY PROVIDES DIGITAL VIDEO COMPRESSION SOLUTIONS EXIDE BLOOMFIELD MICH BALLOONED 6 3/8 TO 42 3/4 ON THE NEW YORK STOCK EXCHANGE THE COMPANY WAS ONE OF TWO CHOSEN BY SEARS ROEBUCK & CO'S SEARS MERCHANDISE GROUP SUBSIDIARY TO PRODUCE ITS DIEHARD BRAND BATTERIES CATHERINES STORES FELL 1 1/8 TO 11 1/2 THE MEMPHIS TENN WOMEN'S APPAREL RETAILER SAID IT EXPECTS FISCAL FIRSTQUARTER EARNINGS TO FALL BELOW THE 31 CENTS A SHARE REPORTED LAST YEAR DUE TO APRIL SALES THAT ARE RUNNING BEHIND PLAN DISAPPOINTING FIRSTQUARTER RESULTS TRIPPED CERNER SENDING IT DOWN 4 5/8 TO 26 5/8 THE KANSAS CITY MO INFORMATION SYSTEMS DESIGNER POSTED FIRSTQUARTER EARNINGS OF 20 CENTS A SHARE ALTHOUGH ANALYSTS HAD EXPECTED 25 CENTS A YEAR EARLIER CERNER EARNED 18 CENTS WHEN TECHNOLOGY STOCKS ARE ACTING WELL IT'S A SIGN OF THE EXTREME HEALTH OF THE REST OF THE MARKET SAID RALPH BLOCH CHIEF MARKET STRATEGIST AT RAYMOND JAMES & ASSOCIATES MR BLOCH SAID THIS IS ONE REASON WHY HE THINKS STOCKS HAVE REACHED THEIR DOWNSIDE FOR THE TIME BEING I DON'T THINK WE'RE GOING TO SEE A STRAIGHTLINE ADVANCE HE SAID BUT I DO THINK WE'VE COMPLETED THIS LONGAWAITED CORRECTION MR BLOCH ADDED THAT THE MARKET DOESN'T FEEL BEARISH IT'S BEEN TOO VOLATILE HE SAID BEAR MARKETS EIGHTHS AND QUARTER YOU TO DEATH THEY DON'T START OUT WITH SUCH AN OBVIOUS KNOCKOUT PUNCH BUT OTHERS WERE MORE DUBIOUS THE DECLINES WE'VE BEEN GETTING THE FACT THAT WE TOOK OUT PRIOR LOWS IN THE MARKET WEDNESDAY SUGGESTS THAT AFTER THIS RALLY PHASE WE SHOULD HEAD BACK DOWN SAID GREG KUHN OF KUHN ASSET MANAGEMENT 9404220136 940422 COMPUTERS NEWSLETTER FACES LIBEL SUIT FOR FLAMING' ON INTERNET BY JARED SANDBERG STAFF REPORTER OF THE WALL STREET JOURNAL WHEN BROCK MEEKS TAPPED INTO THE INTERNET ONE MORNING HE CAME ACROSS A SALES PITCH THAT SOUNDED TOO GOOD TO BE TRUE BECOME A RECIPIENT OF ELECTRONIC JUNK MAIL AND COLLECT 500 OR MORE A YEAR SENSING A POSSIBLE SCAM MR MEEKS DECIDED TO SIGN UP AND CHECK IT OUT A SHORT WHILE LATER HE RECEIVED A DIRECTMAIL AD FOR A 159 BOOKANDSOFTWARE PACKAGE THAT PROMISED TO MAKE HIM A MILLIONAIRE OUTRAGED HE ZAPPED OUT A NEW ISSUE OF HIS ELECTRONIC NEWSLETTER UNDER THE HEADLINE CYBERSUCKER HE CALLED THE OFFERING A SCAM THE COMPANY'S PRESIDENT A SLICK DIRECTMAIL BARON AND ANY WOULDBE ADVERTISERS POOR CAPITALIST SLUBS THEN MR MEEKS GOT SUED SUAREZ CORPORATION INDUSTRIES THE DIRECTMAIL COMPANY THAT MR MEEKS FLAMED FILED A DEFAMATION LAWSUIT AGAINST HIM LAST MONTH CLAIMING LOST BUSINESS SEEKING DAMAGES AND DEMANDING AN INJUNCTION TO BLOCK HIM FROM THWARTING ITS EFFORTS TO DO BUSINESS ON THE INTERNET THE LAWSUIT PENDING IN CUYAHOGA COUNTY COURT IN OHIO IS ONE OF THE FIRST US LIBEL CASES TO ARISE OUT OF THE FREEFORALL ON THE INTERNET IF IT SUCCEEDS SOME LEGAL EXPERTS SAY IT COULD SPAWN OTHER COMPLAINTS THE FEW PAST LIBEL SUITS INVOLVING COMMERCIAL ELECTRONIC SERVICES AS OPPOSED TO THE QUASIPUBLIC INTERNET HAVE MOSTLY BEEN SETTLED OUT OF COURT THAT LEAVES LITTLE LEGAL PRECEDENT FOR THIS CASE KENT STUCKEY COUNSEL FOR H&R BLOCK CO'S COMPUSERVE SERVICE SAYS THE CENTRAL ISSUE IS WHETHER ELECTRONIC NEWSLETTERS ARE ENTITLED TO FIRST AMENDMENT PROTECTION A RULING AGAINST MR MEEKS WOULD PUT OTHER VOCIFEROUS INHABITANTS OF THE INTERNET AT SUBSTANTIAL RISK AND HAVE A CHILLING EFFECT HE SAYS VETERAN USERS OF THE INTERNET LAMENT ANOTHER DISTURBING IMPLICATION THE INTERNET WHICH BEGAN AS THE EXCLUSIVE ELECTRONIC IVORY TOWER OF SCIENTISTS AND ACADEMICS IS BECOMING A TACKY BAZAAR OF JUNK MAIL SMALLTIME SCAMS AND NOW LAWYERS AND LAWSUITS SOME DAY SOON MILLIONS OR EVEN BILLIONS OF DOLLARS OF COMMERCE WILL BE TRADED ON THE INTERNET WITH AN ESTIMATED TWO MILLION NEWCOMERS GOING ON LINE EACH MONTH THE AGE OF INNOCENCE IS OVER THE INTERNET IS NOT JUST A LITTLE RESEARCH FANTASYLAND ANYMORE SAYS BARRY SHEIN WHOSE COMPANY SOFTWARE TOOL & DIE WAS AMONG THE FIRST TO BROADEN INTERNET ACCESS IT'S BECOMING REAL SHARI STEELE A LAWYER FOR THE ELECTRONIC FRONTIER FOUNDATION A NONPROFIT GROUP SAYS WE'RE SEEING LAW FROM THE REAL WORLD COME INTO THIS REALM OF COMMUNICATIONS IT'S A REAL AWAKENING TWO DECADES AFTER ITS EMERGENCE THE INTERNET IS STILL GOVERNED BY AN UNWRITTEN CODE WHILE BLATANT ADS ARE FROWNED ON IT'S ALL RIGHT TO PROVIDE PRODUCT INFORMATION IN A CENTRAL PLACE FOR USERS WHO CHOOSE TO CHECK IT OUT BECAUSE THE INTERNET LACKS A CONTROLLING AUTHORITY USERS TAKE IT UPON THEMSELVES TO DISCIPLINE THOSE WHO VIOLATE NETIQUETTE THE JOB IS DIFFICULT BECAUSE INTERLOPERS CAN CLOAK THEIR IDENTITIES IN FALSE NAMES MR MEEKS AGE 38 IS CHIEF AMONG THE VIGILANTE VETERANS BY DAY HE IS A REPORTER FOR THE TRADE PAPER COMMUNICATIONS DAILY BY NIGHT ARMED WITH A KEYBOARD AT HIS HOME IN FREDERICKSBURG VA HE FANCIES HIMSELF A SHERIFF IN CYBERSPACE OFTEN AIMING HIS NEWSLETTER CYBERWIRE DISPATCH AT SUSPECTED SNAKEOIL SALESMEN ON THE ELECTRONIC FRONTIER PEOPLE GOT SCAMMED ALL THE TIME IN FRONTIER TOWNS MR MEEKS SAYS THERE'S NO OTHER SERVICE OUT THERE THAT'S KIND OF WATCHING OUT FOR THE 'NET IN FEBRUARY AN ANTIABORTION ACTIVIST IN ARKANSAS TRIED TO SOLICIT 100 DONATIONS OVER THE INTERNET UNDER THE GUISE OF FUNDING ABORTIONRIGHTS EFFORTS HARDLY A WEEK GOES BY WITHOUT SOMEONE POSTING A MESSAGE OFFERING PRODUCTS FOR ALMOST NOTHING ELECTRONIC CHAIN LETTERS CIRCULATE AMONG THE INTERNET'S 20 MILLION FAITHFUL ASKING PEOPLE TO SEND MONEY TO THE FIRST PERSON ON A LIST AND PROMISING A WINDFALL IN A SERIES OF ELECTRONIC DISPATCHES LAST SUMMER MR MEEKS TOOK ON JOEY SKAGGS AN INFAMOUS MEDIA PRANKSTER WHEN MR SKAGGS PUT OUT AN INTERNET MISSIVE CLAIMING THAT CUSTOMS OFFICIALS AT THE CANADIAN BORDER HAD CONFISCATED THE GEAR OF A VIRTUAL SEX COMPANY OFFERING SAFE SEX BY COMPUTER MR MEEKS UNCOVERED THE HOAX MORE RECENTLY MR MEEKS TOOK A SHOT AT THE INTERNATIONAL INTERNET ASSOCIATION FOR OFFSETTING 800NUMBER COSTS BY CHARGING THE CREDIT CARDS OF USERS WHO SIGNED UP FOR FREE INTERNET ACCESS IN BENJAMIN SUAREZ THE 52YEAROLD PRESIDENT OF SUAREZ CORPORATION INDUSTRIES MR MEEKS MAY HAVE MET HIS MATCH MR SUAREZ'S COMPANY HAS RUN SWEEPSTAKE PROMOTIONS AND SOLD SUCH ITEMS AS ZSA ZSA GABOR COSMETICS HOME GOLF EQUIPMENT AND A COLLECTIBLE PLATE WITH THE LIKENESS OF A LITTLE GIRL ENTITLED JUST YOU AND ME AND IN RESPONSE TO COMPLAINTS MR SUAREZ HAS DISPLAYED A PROPENSITY TO FIGHT BACK THE ATTORNEY GENERAL'S OFFICE OF WASHINGTON STATE HAS ACCUSED HIM IN STATE COURT OF USING MISLEADING TACTICS IN MARKETING FAKE DIAMONDS HE HAS SETTLED CHARGES THERE TWICE COUNTERING WITH AD CAMPAIGNS CRITICIZING HIS ACCUSERS HE IS ALSO SUING CBS INC IN FEDERAL COURT IN OHIO FOR DEFAMATION IN REPORTING ON THE FAKEDIAMOND AFFAIR THE JUNKMAIL PITCH ON THE INTERNET WAS SUAREZ'S FIRST FORAY INTO ONLINE COMMERCE MR MEEKS ANSWERED AN ITEM FROM SUAREZ'S ELECTRONIC POSTAL SERVICE THAT PROMISED FREE INTERNET ACCESS AND FUTURE RICHES INSTEAD HE RECEIVED A DIRECTMAIL OFFER FOR THE BOOK WRITTEN BY MR SUAREZ WHO SPENT SIX PAGES BOASTING OF HIS PERSONAL WEALTH IN CYBERWIRE DISPATCH ACCORDING TO THE SUAREZ COMPLAINT MR MEEKS COUNTERED LET'S FLIP THIS LATEST INTERNET SCAM ON ITS BACK AND GUT THAT SOFT WHITE UNDERBELLY GLOVES PLEASE THE ARTICLE ALSO SAID THAT EPS IS NOTHING MORE THAN A SHELL COMPANY FOR A DIRECT MAILING SCAM RICHARD KNOTH SUAREZ'S OUTSIDE ATTORNEY COUNTERS THAT USERS OF THE SYSTEM CAN MAKE MONEY BUT HE DECLINES TO NAME ANY CUSTOMERS OR ADVERTISERS SUAREZ'S INHOUSE COUNSEL STEVEN L BADEN CONCEDES THAT THE ELECTRONIC POSTAL SERVICE ISN'T YET COMMERCIALLY VIABLE AND DOESN'T YET PROVIDE INTERNET ACCESS DESPITE THE AD'S CLAIM TO THE CONTRARY MR KNOTH ALSO SAYS THAT MR SUAREZ WHO DECLINED TO BE INTERVIEWED FOR THIS STORY WAS VERY DISTURBED AND DISTRESSED BY THE PUBLICATION SO A SUAREZ LAWYER DISPATCHED A WARNING TO MR MEEKS VIA THE INTERNET DEMANDING THAT HE RETRACT HIS STATEMENTS MR MEEKS REFUSED NOTHING THAT I WROTE WAS UNTRUE HE SAYS THE LAWSUIT FOLLOWED THIS IS WHAT I GET FOR WEARING A BIG WHITE HAT HE SAYS SOME VETERANS SAY THE CLASH IS ALL THE FAULT OF THEIR UNWANTED NEW NEIGHBORS IN CYBERSPACE EUGENE SPAFFORD PROFESSOR OF COMPUTER SCIENCE AT PURDUE UNIVERSITY REMEMBERS WHEN EVERYONE ON THE INTERNET WAS SOMEONE HE LOOKED FORWARD TO MEETING NOW HE SAYS THERE ARE A WHOLE LOT OF PEOPLE ON THE 'NET THAT I WOULD PREFER NEVER TO MEET UNDER ANY CIRCUMSTANCES 9404220135 940422 PPG REVERSES LOSS IN 1ST PERIOD POSTS NET OF 1219 MILLION PITTSBURGH PPG INDUSTRIES INC REPORTED A TURNAROUND IN FIRSTQUARTER RESULTS POSTING NET INCOME OF 1219 MILLION COMPARED WITH A YEAREARLIER LOSS OF 1627 MILLION THE GLASS CHEMICALS AND COATINGS COMPANY ALSO ANNOUNCED A 2FOR1 STOCK SPLIT AND AN INCREASE IN THE QUARTERLY DIVIDEND TO 56 CENTS FROM 54 CENTS AT ITS ANNUAL MEETING HERE THE COMPANY SAID IT EXPECTS 1994 TO BE A REASONABLY GOOD YEAR THE COMPANY ALSO UNVEILED A BLUEPRINT FOR THE FUTURE A PLAN THAT CALLS FOR ANNUAL SALES GROWTH OF 5 A RETURN ON SHAREHOLDER EQUITY OF 18 THE MAINTENANCE OF A RATIO OF DEBT TO TOTAL CAPITAL OF ONETHIRD AND ANNUAL PRODUCTIVITY GROWTH OF 4 PER EMPLOYEE PPG'S FIRSTQUARTER NET TRANSLATED TO 115 A SHARE COMPARED WITH THE YEAREARLIER LOSS OF 153 A SHARE IN THE 1993 FIRST QUARTER EXCLUDING THE IMPACT OF ACCOUNTING CHANGES AND A ONETIME DIVESTITURE GAIN PPG WOULD HAVE POSTED NET INCOME OF 88 CENTS A SHARE ON A YEARTOYEAR BASIS OPERATING EARNINGS FOR THE FIRST QUARTER INCREASED 23 ALTHOUGH SALES ROSE ONLY ABOUT 2 TO 148 BILLION THE INCREASED DIVIDEND AND STOCK DISTRIBUTION ARE PAYABLE JUNE 10 TO SHAREHOLDERS OF RECORD MAY 10 EARNINGS PER SHARE FOR 1994'S FIRST QUARTER RESTATED TO REFLECT THE STOCK DISTRIBUTION WOULD BE 57 CENTS ACCORDING TO THE COMPANY WITH THE STOCK SPLIT THE NEW QUARTERLY DIVIDEND WILL BE 28 CENTS A SHARE THE MAJOR TROUBLE SPOT IS THE CHLORALKALI BUSINESS WHERE WE DON'T EXPECT MUCH IMPROVEMENT IN PRICES UNTIL LATER IN THE YEAR SAID JERRY E DEMPSEY PPG'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN EUROPE WE DON'T EXPECT CONDITIONS TO DETERIORATE BUT WE DON'T EXPECT OUR BUSINESS PERFORMANCE THERE TO IMPROVE SUBSTANTIALLY UNTIL AT LEAST THE SECOND HALF OF 1994 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE PPG CLOSED AT 71875 UP 1125 OR 16 9404220134 940422 WHO'S NEWS FITCH INVESTORS SERVICE INC FITCH INVESTORS SERVICE INC NEW YORK STEPHEN W JOYNT 42 YEARS OLD WAS NAMED PRESIDENT OF THIS RATINGS CONCERN SUCCEEDING H RUSSELL FRASER 53 WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR JOYNT FORMERLY SERVED AS MANAGING DIRECTOR OF FINANCIAL INSTITUTIONS AND STRUCTURED FINANCE AT STANDARD & POOR'S RATINGS GROUP ADDITIONALLY CLAIRE GORHAM COHEN 59 WAS PROMOTED FROM EXECUTIVE VICE PRESIDENT TO VICE CHAIRMAN AS WELL AS SENIOR CREDIT OFFICER OF ITS CREDIT CRITERIA COMMITTEE BOTH NEW POSITIONS MARK HS COHEN 40 AN EXECUTIVE VICE PRESIDENT WAS ALSO NAMED TO HEAD THE COMPANY'S PUBLIC FINANCE GROUP INCLUDING FINANCIAL GUARANTIES 9404220133 940422 HEARD ON THE STREET JEWELRY MARKET BEGINS TO RECAPTURE SPARKLE RENEWING BURNISH OF SOME STOCKS IN INDUSTRY BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL WHEN IT COMES TO THE JEWELRY BUSINESS FORGET MONACO AND LOOK TO THE MALL SPLENDID GEMS MAY BE COMMANDING EVERLOFTIER PRICES AT AUCTION BUT ON MAIN STREET REAL PEOPLE ARE SNAPPING UP GOLD CHAINS AND DIAMONDCHIP EARRINGS AND SO INVESTORS ARE TAKING A BRIGHTER VIEW OF THE STOCKS OF JEWELRY RETAILERS AND MANUFACTURERS THE JEWELRY MARKET STUNK FOR A WHILE SAYS KENNETH GASSMAN SPECIALTY RETAILING ANALYST AT DAVENPORT & CO RICHMOND VA BUT NOW A REVIVING ECONOMY IS BOOSTING SALES OF BAUBLES HE SAYS THE GROUP'S VALUATION IS LOW RELATIVE TO THE MARKET AND TO HISTORIC LEVELS HE SAYS MOREOVER IN THE FIXEDCOST JEWELRY BUSINESS EVEN A SLIM SALES GAIN HAS TREMENDOUS IMPACT ON EARNINGS AT FIDELITY INVESTMENTS PORTFOLIO MANAGER JOEL TILLINGHAST SAYS HE GOT INTERESTED IN JEWELRY STOCKS AS A SPINOFF OF THE RUNUP IN GOLD STOCKS LAST SUMMER AND BECAUSE OF INVESTORS' INTEREST IN HOMESHOPPING CHANNELS WHICH SELL LOTS OF JEWELRY HE HAS BOUGHT SHARES OF TWO JEWELRY RETAILERS REEDS JEWELERS AND ZALE AND TWO MANUFACTURERS OROAMERICA AND HARLYN PRODUCTS FOR HIS FIDELITY LOWPRICED STOCK FUND ALL BUT ZALE HE SAYS HAVE BEEN TRADING LATELY AT 10 TIMES OR LESS EARNINGS ESTIMATES FOR THE CURRENT FISCAL YEAR FOR YEARS TIFFANY WAS THE FAVORED PLAY IN JEWELRY BUT NOT THIS TIME WEAK SALES IN EUROPE AND THE FAR EAST AND A SLOWING OF MAILORDER AND CORPORATE BUSINESS HAVE ERODED THE STOCK TO 29 OR ABOUT 16 TIMES 1994 PROFIT ESTIMATES BUT TIFFANY HAS BEEN DOING A STRONG US BUSINESS SAY ANALYSTS WHO SEE THIS AS ANOTHER REASON TO LIKE US JEWELRY STOCKS AT REEDS JEWELERS IN WILMINGTON NC WITH 70 STORES IN 11 STATES SAMESTORE SALES IN MARCH JUMPED 14 FROM A YEAR EARLIER SALES IN JANUARY AND FEBRUARY ROSE 9 THE DATA SUGGEST THE INDUSTRY MAY BE BREAKING AWAY FROM A PATTERN OF REAPING 41 OF ANNUAL SALES AT CHRISTMAS SAYS MR GASSMAN AT LAZARE KAPLAN A NEW YORK COMPANY THAT CUTS AND POLISHES DIAMONDS FOR SALE TO RETAIL JEWELERS AND IS RUN BY FINANCIER MAURICE TEMPELSMAN SALES FOR THE THIRD QUARTER ENDED FEB 28 ROSE 91 TO 415 MILLION AT FRIEDMAN'S A SAVANNAH GA JEWELRY RETAILER THAT OPERATES 107 STORES AND WILL ADD ABOUT 25 BY YEAREND SALES ROSE 45 IN THE YEAR THROUGH MARCH KIDDER PEABODY & CO ANALYST KATHERINE T MARTIN HAS A STRONG BUY ON THE STOCK EXPECTING ITS STRATEGY OF TARGETING BUDGETORIENTED CONSUMERS TO BRING COMPOUND ANNUAL REVENUE GROWTH OF 35 AND FRIEDMAN'S EXECUTIVES HAVE BEEN LOADING UP ON ITS STOCK SINCE OCTOBER SIX OFFICIALS AND DIRECTORS INCLUDING BRADLEY J STINN PRESIDENT BOUGHT A TOTAL OF 29100 SHARES AT 970 TO 1232 EACH FILINGS SHOW YESTERDAY THE STOCK ROSE 1/8 TO 13 5/8 IN NASDAQ TRADING ONE CAVEAT ON THIS INDUSTRY THE JEWELRY BUSINESS WAS SO BAD THAT EVEN AS SALES IMPROVE SOME STOCKS ARE STILL HIGHRISK BETS LAZARE KAPLAN DESPITE THE UPTICK IN SALES HAD A NET LOSS FOR THE FISCAL YEAR OF 982000 DALLASBASED ZALE ONE OF THE LARGEST JEWELRY RETAILING CHAINS EMERGED FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS JULY 30 SIGNET GROUP PLC FORMERLY RATNERS GROUP IS UNDERGOING A SWEEPING REORGANIZATION ZALE IS INTERESTING AS A VALUE' BUY BECAUSE THE STOCK'S SELLING FOR LESS THAN THE VALUE OF THE INVENTORY AND RECEIVABLES SAYS FIDELITY'S MR TILLINGHAST THERE ARE EXTREMELY FEW BARGAINS IN THE MARKET AND ZALE IS ONE THE STOCK IS AT 8 3/4 ON NASDAQ HIS FUND ALSO OWNS ABOUT 100000 SHARES OF REEDS JEWELERS WHICH HE SAYS IS THINLY TRADED WITH JUST 35 MILLION SHARES OUTSTANDING BUT PRETTY ATTRACTIVE NOW THAT SOME SMALLER COMPETITORS HAVE GONE UNDER AT 10 1/2 ON NASDAQ REED IS TRADING AROUND 11 TIMES THE 92 CENTS A SHARE EARNED IN THE YEAR THROUGH FEBRUARY MR TILLINGHAST SAYS THERE AREN'T THAT MANY GROWTH RETAILERS AT THAT KIND OF MULTIPLE A BET ON ANY OF THESE STOCKS IS A WAGER THAT PEOPLE WILL KEEP BUYING JEWELRY EVEN IN THE FACE OF RISING INTEREST RATES THAT MAKE IT COSTLIER TO FINANCE BIG PURCHASES FOR NOW JEWELRY DEMAND IS RISING US DIAMOND IMPORTS HIT A RECORD 97 MILLION CARATS VALUED AT 45 BILLION IN 1993 UP 26 IN WEIGHT FROM 1992 AND ECLIPSING 1989'S RECORD GOLD JEWELRY CONSUMED 248 TONS OF GOLD IN 1993 UP 8 FROM THE PREVIOUS YEAR THE WORLD GOLD COUNCIL SAYS ANALYSTS AREN'T COUNTING OUT TIFFANY WHICH TRADED AS HIGH AS 38 BEFORE CHRISTMAS THE JAPANESE ECONOMY IS GOING TO TURN AND ITALY AND GERMANY ARE GOING TO GET THEIR ACTS TOGETHER PREDICTS DAVENPORT'S MR GASSMAN AND THEN TIFFANY WILL BE SITTING PRETTY 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 9404220132 940422 COMMODITIES COPPER FUTURES PRICES SETTLE SHARPLY HIGHER IN WAKE OF A RALLY IN STOCK AND BOND MARKETS BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL COPPER FUTURES PRICES BROKE OUT OF THEIR NARROW TRADING RANGE TO MOVE SHARPLY HIGHER IN THE WAKE OF A RALLY IN BOTH THE STOCK AND BOND MARKETS AT NEW YORK'S COMMODITY EXCHANGE COPPER FOR JULY DELIVERY WAS UP 155 CENTS AT 888 CENTS A POUND THE WIDELY WATCHED MAY CONTRACT SET TO EXPIRE SHORTLY GAINED 185 CENTS TO END AT 8870 CENTS A POUND COPPER HAS BEEN SHOWING SOME RESILIENCE ANYWAY SUPPORTED BY SOME ONGOING COMMERCIAL BUYING INTEREST SAID BERNARD SAVAIKO SENIOR ANALYST AT PAINEWEBBER INC THE UPWARD MOVE IN THE BOND AND STOCK MARKETS REASSURED US THAT MAYBE HIGHER RATES HAVEN'T HAMPERED THE RECOVERY AND THAT SO FAR RATES HAVEN'T HIT CONSUMER DEMAND FOR DURABLE GOODS LIKE CARS FOR WHICH COPPER IS NECESSARY THE PROBABILITY OF FUTURE INTEREST RATE INCREASES HAD PUT A DAMPER ON COPPER FUTURES PRICES SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST AT MERRILL LYNCH & CO IN NEW YORK REMOVING THAT RED FLAG ALLOWED THE FOCUS TO SHIFT TO THE SOLID NORTH AMERICAN DEMAND AND EMERGING EUROPEAN DEMAND PICTURE HE ADDED THE ONGOING REDUCTION IN LONDON METAL EXCHANGE COPPER STOCKS ALSO HAS HELPED SUPPORT AND NOW BOOST THE METAL'S PRICE ANALYSTS SAY THE INVENTORIES AT A 15YEAR HIGH IN JANUARY HAVE SINCE FALLEN ABOUT 23 SAYS FRED DEMLER METALS ECONOMIST AT ED&F MAN A COMMODITY BROKERAGE IN NEW YORK THOSE INVENTORY DECLINES HAVE HELPED FUEL A BELIEF AMONG SOME INVESTORS THAT THE ECONOMIC RECOVERY IN EUROPE IS GATHERING SPEED WHICH COULD TRANSLATE INTO INCREASED DEMAND FOR COPPER A KEY INDUSTRIAL METAL SOME RECENT INTEREST RATE CUTS IN EUROPE ARE HELPING ECONOMIES AND BUSINESS IS PICKING UP MR SAVAIKO SAID DEMAND IN THE FAR EAST IN KOREA AND TAIWAN ALSO IS SAID TO BE GOOD WHILE DEMAND IS INCREASING SLOWLY BUT STEADILY MINE OUTPUT APPEARS TO BE FALLING MR DEMLER SAID HE ADDED THAT SOME INDUSTRIAL USERS ARE CONFRONTING A SHORTFALL IN SUPPLIES OF COPPER CONCENTRATE SOME TRADERS WERE CAUGHT OFFGUARD BY THE SURGE IN COPPER FUTURES PRICES BOTH THE MAY AND JULY CONTRACTS HAD TRADED IN A NARROW RANGE OF 86 TO 88 CENTS FOR SEVERAL WEEKS AND SPECULATIVE PLAYERS SAY THEY WERE LULLED INTO COMPLACENCY I GOT A VERY RUDE SURPRISE IN A HURRY THIS MORNING ONE TRADER SAID AFTER SELLING OUT BELOW THE 88 CENT A POUND LEVEL THUS MISSING MUCH OF THE UPSIDE A LARGE PART OF THE RALLY WAS ATTRIBUTED TO INVESTORS COVERING THEIR SHORT POSITIONS THAT IS BUYING COPPER FUTURES TO REPLACE BORROWED CONTRACTS THAT THEY HAD SOLD IN THE EXPECTATION THEY WOULD BE ABLE TO BUY THEM BACK AT A LOWER PRICE AND POCKET THE SPREAD BUT THERE IS ONLY GUARDED OPTIMISM ABOUT THE METAL'S FUTURE PROSPECTS FUTURES PRICES WILL CONTINUE TO BE DEPENDENT ON THE DIRECTION OF INTEREST RATES AND THE BOND AND STOCK MARKETS ANALYSTS NOTE AND THE SECOND QUARTER IS TRADITIONALLY THE SLOW SEASON FOR COPPER PURCHASES BY INDUSTRIAL USERS AS MANUFACTURERS SCALE BACK THEIR BUYING AHEAD OF SCHEDULED SUMMER SHUTDOWNS AND MAINTENANCE WORK WE'D NEED A MAJOR FUNDAMENTAL DEVELOPMENT TO HAVE A SIGNIFICANT FOLLOWTHROUGH MR DEMLER SAID IN OTHER COMMODITY MARKETS ENERGY THE RALLY IN WORLD OIL MARKETS CONTINUED AS PETROLEUM FUTURES PRICES DREW SUPPORT FROM SUGGESTIONS OF POSSIBLE DISRUPTIONS IN THE SUPPLY OF OIL FROM NIGERIA THE AFRICAN NATION PRODUCES LIGHT LOWSULFUR OIL AND REPORTS INDICATED THAT PRODUCTION OF AS MUCH AS 70000 BARRELS A DAY OF FORCADOS A QUALITY CRUDE HAD BEEN CLOSED DOWN BECAUSE OF LOCAL DISTURBANCES SUCH A RELATIVELY SMALL VOLUME WOULD HAVE NEGLIGIBLE IMPACT ON THE WORLD'S OVERALL SUPPLIES OF CRUDE BUT THE NEWS ADDED TO THE BULLISH SENTIMENT THAT ALREADY HAD SWEPT THROUGH THE OIL MARKETS THIS WEEK ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FOR JUNE DELIVERY INCREASED 31 CENTS TO SETTLE AT 1663 A BARREL SUGAR WORLD SUGAR FUTURES PRICES LEAPED HIGHER ON PERCEPTIONS OF LOWERTHANANTICIPATED SUPPLIES WORLD SUGAR FOR JULY DELIVERY ROSE 049 CENT TO END THE DAY AT 1148 CENTS A POUND SANDRA KAUL SENIOR ANALYST AT SMITH BARNEY SHEARSON INC SAYS SUGAR APPEARS TO HAVE BEEN FINDING BUYERS AT THE LOW PRICES IT HAS HIT RECENTLY LEADING TO SOME EFFORTS BY TRADERS TO COVER SHORT POSITIONS OR THE BETS THEY HAD MADE THAT THE COMMODITY'S PRICE WOULD FALL FURTHER PAINEWEBBER'S MR SAVAIKO DESCRIBING THE MOVE AS EXPLOSIVE SAID THERE APPEARS TO HAVE BEEN SOME BUYING INTEREST FROM BOTH INDIA AND LEBANON IN RECENT DAYS ENDUSERS ALSO HAVE EMERGED AS STRONG BUYERS HE SAID THEY WOULDN'T BE BUYING SO AGGRESSIVELY IF THERE WASN'T STRONG DEMAND SHAPING UP AT THESE LOWER PRICE LEVELS AS WELL AS A BIT OF CONCERN ABOUT LOCKING IN SUPPLIES MR SAVAIKO ADDED HE SAID HE BELIEVES SUGAR PRICES COULD CONTINUE THIS RALLY IN THE SHORTTERM POSSIBLY HITTING 12 CENTS A POUND 9404220131 940422 WHO'S NEWS GUY F ATKINSON CO OF CALIFORNIA GUY F ATKINSON CO OF CALIFORNIA SAN BRUNO CALIF JACK J AGRESTI 56 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED CHIEF EXECUTIVE OF THIS CONSTRUCTION AND DIVERSIFIEDSERVICES CONCERN HE REMAINS PRESIDENT THE CHIEF OPERATING OFFICER'S POST WILL BE LEFT VACANT AS CHIEF EXECUTIVE MR AGRESTI SUCCEEDS THOMAS J HENDERSON 63 WHO REMAINS CHAIRMAN 9404220130 940422 LETTERS TO THE EDITOR TRUTH AND FICTION ABOUT TYSON FOODS AS CHAIRMAN OF THE NATION'S LARGEST AND MOST SUCCESSFUL POULTRY COMPANY I AM WEARY OF THE INSINUATIONS AND ALLEGATIONS THAT THE COMPANY BEARING MY FAMILY NAME IS IN SOME INSIDIOUS WAY BENEFITING AS A RESULT OF THE FACT THAT THE FORMER GOVERNOR OF ARKANSAS NOW RESIDES AT 1600 PENNSYLVANIA AVENUE IN WASHINGTON NEWSPAPERS AND NEWS BROADCASTS HAVE STATED OR IMPLIED THAT WE HAVE SOUGHT AND RECEIVED PREFERENTIAL TREATMENT FROM A VARIETY OF GOVERNMENT AGENCIES BECAUSE I PERSONALLY KNOW BILL CLINTON OR BECAUSE MY COMPANY IS THE LARGEST EMPLOYER IN ARKANSAS NEITHER I PERSONALLY NOR TYSON FOODS INC HAS IN ANY WAY ASKED FOR OR RECEIVED SPECIAL OR PREFERENTIAL TREATMENT FROM ANY CLINTON ADMINISTRATION THERE IS NO QUESTION THAT PRESIDENT CLINTON KNOWS A GREAT DEAL ABOUT TYSON FOODS AND HE HAS BEEN KNOWN TO ENJOY OUR PRODUCTS AS GOVERNOR HE HELPED US CELEBRATE THE OPENING OF SEVERAL NEW OPERATIONS HERE AT TYSON WE WERE PRODUCING GREAT CHICKEN WHEN DWIGHT EISENHOWER WAS PRESIDENT WE GOT BIGGER AND OUR PRODUCTS GOT BETTER UNDER PRESIDENTS KENNEDY JOHNSON NIXON FORD CARTER REAGAN AND BUSH WHY SHOULD THINGS CHANGE NOW JUST BECAUSE THE FORMER GOVERNOR OF ARKANSAS IS IN THE WHITE HOUSE WE ARE PROUD THAT ONE OF OUR OWN IS THE LEADER OF THE FREE WORLD BUT JUST AS WITH ALL OTHER ADMINISTRATIONS WE WILL NOT ASK FOR EXPECT NEED OR RECEIVE PREFERENTIAL TREATMENT ANYTHING YOU MIGHT READ OR HEAR TO THE CONTRARY IS SIMPLY FICTION BECAUSE MR CLINTON IS PRESIDENT THE MICROSCOPE OF THE NATIONAL MEDIA IS FOCUSED ON ARKANSAS AS A RESULT TYSON OBVIOUSLY FALLS PREY TO CLOSE INSPECTION WE ARE NOT AFRAID OF ANYONE TAKING A CLOSE LOOK AT THE WAY WE DO BUSINESS AS THE INDUSTRY LEADER WE ARE PROUD TO SET THE PACE IN PRODUCT QUALITY EMPLOYMENT PRACTICES TECHNOLOGY DEVELOPMENT AND MOST OTHER FACETS OF OUR BUSINESS TYSON WORKS CLOSELY WITH GOVERNMENT AGENCIES IN 17 STATES AS WELL AS ON THE FEDERAL LEVEL WITH REGULATORS SUCH AS THE USDA OSHA FDA AND OTHERS WE OFTEN BRING MORE TO THESE RELATIONSHIPS THAN WE GET OUR OWN QUALITY STANDARDS ARE GENERALLY MUCH HIGHER THAN THOSE REQUIRED BY GOVERNMENT OUR WORKPLACE SAFETY RECORD FIVE TIMES BETTER THAN THE INDUSTRY AVERAGE IS A GOOD EXAMPLE OF JUST THAT COMMITMENT THERE IS A MAJOR MISCONCEPTION ABOUT TYSON FOODS THAT HAS BEEN REINFORCED TIME AND AGAIN AS A RESULT OF OUR BEING ARKANSAS'S LARGEST EMPLOYER THE FACT IS TYSON FOODS IS NOT JUST AN ARKANSAS CHICKEN COMPANY MY DAD JOHN TYSON STARTED THE COMPANY IN NORTHWEST ARKANSAS AND IT IS STILL HEADQUARTERED IN SPRINGDALE WHICH IS GOOD FORTUNE FOR THE REGION BUT TYSON IS MUCH MORE THAN A LOCAL OR REGIONAL COMPANY ACCORDING TO FORTUNE MAGAZINE IT HAS GROWN TO BE THE NATION'S 110TH LARGEST INDUSTRIAL ENTERPRISE WITH 66 PLANTS IN 17 STATES SALES IN 1993 AMOUNTED TO NEARLY 5 BILLION THE TYSON BRAND NAME IS FAMILIAR TO SHOPPERS NATIONWIDE AND IN 57 OTHER COUNTRIES AROUND THE GLOBE ARKANSAS IS A GREAT PLACE TO LIVE AND WORK BUT TO ACCOMPLISH WHAT TYSON HAS ITS INDUSTRYLEADING GLOBAL REACH HAS BEEN CRITICAL WITH THE TREMENDOUS DEVELOPMENTS IN TRANSPORTATION AND COMMUNICATIONS A COMPANY LIKE OURS NO LONGER HAS TO BE BASED IN A BUSY FINANCIAL CAPITAL QUALITY OF LIFE SUCH AS WE EXPERIENCE HERE IN ARKANSAS EVEN IF ONE IS UNDER THE MICROSCOPIC SCRUTINY OF THE NATIONAL MEDIA IS A MUCH SOUGHT AFTER COMMODITY WE FIND IT DISTRESSING TO THINK THAT EVEN ONE OF OUR SHAREHOLDERS SUPPLIERS OR CUSTOMERS MIGHT BE CONFUSED BY SOME OF WHAT THEY READ OR HEAR I REPRESENT MORE THAN 53000 TYSON TEAM MEMBERS WHO CARE GREATLY ABOUT ALL OF THE COVERAGE AND ATTENTION SURROUNDING OUR COMPANY BECAUSE WE CAN'T TELL JOURNALISTS HOW TO DO THEIR JOB WE ARE HOPING THEY WILL CALL US DIRECTLY BEFORE CONTINUING TO MAKE BRASH AND INCORRECT ASSUMPTIONS ABOUT HOW WE RUN OUR COMPANY 9404220129 940422 FOREIGN EXCHANGE DOLLAR RISES ON INTERVENTION REPORTS BENTSEN DENIAL OF STRONGYEN POLICY BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR ROSE AGAINST THE YEN YESTERDAY ON RUMORS AND REPORTS OF INTERVENTIONS BY EUROPEAN CENTRAL BANKS AND ON OFFICIAL US DISAVOWALS OF A WEAKDOLLAR POLICY AS A MEANS TO ENTER CLOSED JAPANESE MARKETS THE DOLLAR WAS ALSO NUDGED HIGHER AGAINST MOST EUROPEAN CURRENCIES ON THE HEELS OF A STRONG REBOUND IN US STOCK AND BOND MARKETS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16910 MARKS UP FROM 16898 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10365 YEN UP FROM 10303 YEN STERLING WAS TRADING AT 14905 DOWN FROM 14925 ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10363 YEN AND AT 16890 MARKS RUMORS AND REPORTS THAT THE BANK OF ENGLAND AND THE SWISS NATIONAL BANK HAD INTERVENED TO BUY DOLLARS FOR YEN ON BEHALF OF THE BANK OF JAPAN PUSHED THE DOLLAR UP AGAINST THE JAPANESE CURRENCY FROM AN INTRADAY LOW OF 10255 YEN IN EARLY NEW YORK TRADING TO JUST BELOW RESISTANCE AT 10400 YEN BUT AFTER THE SWISS CENTRAL BANK PUBLICLY DISAVOWED THE RUMOR TRADERS ALSO BEGAN TO QUESTION THE OTHER INTERVENTION REPORTS AT AROUND NOON IN NEW YORK TREASURY SECRETARY LLOYD BENTSEN AND COUNCIL OF ECONOMIC ADVISERS CHAIRWOMAN LAURA TYSON CAME OUT IN SUPPORT OF THE DOLLAR REITERATING THAT THE US DOESN'T HAVE A POLICY OF TALKING UP THE YEN IN ORDER TO LEVEL JAPAN'S MOUNTAINOUS TRADE SURPLUS THE COMMENTS HELPED SUPPORT THE DOLLAR AT ITS HIGHER RANGES AFTER THE CURRENCY BECAME VULNERABLE WHEN THE MARKET BEGAN TO QUESTION WHETHER EUROPEAN CENTRAL BANKS HAD IN FACT INTERVENED INSTEAD OF PINNING THE EARLIER DOLLAR RALLY ON CENTRAL BANKS TRADERS BLAMED COMMERCIAL INSTITUTIONS AND SAID THEIR DOLLARBUYING LED TO A PANIC BY DOLLAR BEARS IN EUROPE WHO WERE CAUGHT OFF GUARD ELSEWHERE THE DOLLAR CREPT UP SLIGHTLY AGAINST MOST EUROPEAN CURRENCIES WITH ANALYSTS CITING STRONG RALLIES YESTERDAY IN US STOCK AND BOND MARKETS AS ONE POSSIBLE CAUSE US BOND AND STOCK MARKETS REBOUNDED SHARPLY YESTERDAY WITH THE DOW JONES INDUSTRIAL AVERAGE FINISHING NEAR AN INTRADAY HIGH OF 365254 UP 5383 POINTS BONDS ALSO CHALKED UP A SIGNIFICANT RALLY WITH YIELDS ON 30YEAR US TREASURYS DROPPING TO 721 COMPARED WITH 731 ON WEDNESDAY HOWEVER TRADERS QUESTIONED WHY THE DOLLAR APPEARS TO FALL IN STEP WITH DROPS IN THE STOCK AND BOND MARKETS WHILE MANAGING ONLY MINOR RECOVERIES WHEN THOSE MARKETS SOAR MEANWHILE THE CURRENCY MARKET ESSENTIALLY IGNORED WORSETHANEXPECTED US WEEKLY JOBS DATA THE WEAK JOBS DATA TRADERS SAID MAY ACTUALLY HAVE HELPED REASSURE THE BOND MARKETS ON THE ISSUE OF INFLATION AND THAT MAY HAVE IN TURN SUPPORTED THE DOLLAR 9404220128 940422 TREASURY QUESTIONS A FINANCING METHOD THAT BLENDS FEATURES OF DEBT AND EQUITY BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL THE TREASURY DEPARTMENT IS QUESTIONING SOME FORMS OF A NEW AND POPULAR CORPORATEFINANCING TECHNIQUE THAT BLENDS SOME FEATURES OF DEBT AND EQUITY IN THREE RELATED PRONOUNCEMENTS THIS WEEK THE INTERNAL REVENUE SERVICE GAVE NOTICE IT INTENDS TO SCRUTINIZE TAX DEDUCTIONS RELATED TO A FINANCING DEVICE USED IN DIFFERENT VARIATIONS RECENTLY BY SEVERAL BIG COMPANIES TO RAISE HUNDREDS OF MILLIONS OF DOLLARS IT ALSO WARNED ABOUT CERTAIN PROPOSED TRANSACTIONS IN WHICH IT HAS CONCLUDED TAX DEDUCTIONS WOULD BE DENIED THE FINANCING TECHNIQUE IN QUESTION MESHES ASPECTS OF DEBT AND EQUITY INTO SOMETHING THAT LOOKS LIKE STOCK WITH TAXDEDUCTIBLE PAYMENTS WHILE COMPANIES TYPICALLY CAN DEDUCT INTEREST PAYMENTS ON DEBT ISSUES THEY ORDINARILY AREN'T ALLOWED TO DEDUCT DIVIDENDS THEY PAY ON THEIR STOCK THE IRS DIDN'T IDENTIFY ANY ISSUERS OR PROPOSED ISSUERS BY NAME BUT AMONG THE COMPANIES USING VARIOUS FORMS OF THIS FINANCING CONCEPT IN RECENT MONTHS ARE A UNIT OF BEAR STEARNS COS PARENT OF THE NEW YORKBASED SECURITIES FIRM THE UNIT BEAR STEARNS FINANCE LLC RAISED 150 MILLION IN FEBRUARY THROUGH AN ISSUE KNOWN AS EPICS WHICH STANDS FOR EXCHANGEABLE PREFERRED INCOME CUMULATIVE SHARES SEVERAL OTHER MAJOR COMPANIES ALSO HAVE USED OTHER FORMS OF THE BASIC CONCEPT THEY ARE KNOWN AS MIPS OR MONTHLY INCOME PREFERRED SHARES A CONCEPT PIONEERED BY GOLDMAN SACHS & CO SOME TAX LAWYERS WHO HAVE STUDIED THE IRS PRONOUNCEMENTS SAY THE GOVERNMENT'S MAIN TARGET APPEARS TO BE THE BEAR STEARNSTYPE OF TRANSACTION AS WELL AS A SEPARATE PROPOSED FORM OF THE FINANCING THAT SOME COMPANIES REPORTEDLY WERE CONSIDERING LAWYERS SAY OTHER FORMS OF THE BASIC CONCEPT STILL MAY PASS MUSTER AT THE IRS THE IRS PRONOUNCEMENTS THREATEN THE ALCHEMIST'S STONE OF A STRUCTURE THAT CREATES TAXDEDUCTIBLE EQUITY FOR CORPORATE ISSUERS WARNS EDWARD D KLEINBARD A PARTNER AT CLEARY GOTTLIEB STEEN & HAMILTON IN NEW YORK BUT WHILE THE IRS SUGGESTS MIPS MAY HAVE TO BE SCALED BACK IN SOME OF THEIR FEATURES TO WORK HE SAID MIPS ISSUES ARE CLEARLY NOT DEAD THE IRS HAS TARGETED SPECIFIC TRANSACTIONS THAT IT VIEWED AS ABUSIVE AND WE WOULDN'T EXPECT TO SEE THOSE REPEATED SAYS SAMUEL J DIMON A PARTNER IN THE WASHINGTON OFFICE OF DAVIS POLK & WARDWELL BUT APART FROM THOSE SPECIFIC TRANSACTIONS THE RULING AMOUNTS TO A VAGUE WARNING THAT IS UNLIKELY TO KILL FUTURE USE OF THIS FINANCING TECHNIQUE THE IRS SAID IT IS FOCUSING ON A TECHNIQUE IN WHICH COMPANIES COUNT PROCEEDS FROM ISSUES AS EQUITY FOR FINANCIAL ACCOUNTING RATINGCONCERN OR REGULATORY PURPOSES WHILE ALSO DEDUCTING PAYMENTS TO INVESTORS AS DEBT FOR FEDERAL INCOMETAX PURPOSES THE IRS WILL SCRUTINIZE INSTRUMENTS OF THIS TYPE TO SEE IF THEIR PURPORTED STATUS AS DEBT FOR TAX PURPOSES IS APPROPRIATE THE IRS SAID IT IS PARTICULARLY INTERESTED IN INSTRUMENTS THAT CONTAIN A VARIETY OF EQUITY FEATURES INCLUDING AN UNREASONABLY LONG MATURITY OR AN ABILITY TO REPAY THE INSTRUMENT'S PRINCIPAL WITH THE ISSUER'S STOCK ANALYSIS OF THESE INSTRUMENTS MUST TAKE INTO ACCOUNT THE CUMULATIVE EFFECT OF THESE FEATURES AND OTHER EQUITY FEATURES THE IRS SAYS IN ANOTHER NOTICE THIS WEEK THE IRS SAID IT IS AWARE OF PROPOSED TRANSACTIONS DESIGNED TO PROVIDE COMPANIES WITH SIGNIFICANT TAX ADVANTAGES IN MEETING THEIR EQUITYCAPITAL RULES IT GIVES AN EXAMPLE AND PROMPTLY CONCLUDES THAT THE INTEREST DEDUCTION IS INAPPROPRIATE IN NEW YORK A BEAR STEARNS SPOKESWOMAN ISSUED A STATEMENT SAYING THE IRS HAS ESSENTIALLY RESTATED ESTABLISHED TAX LAW THAT DEBTVSEQUITY DETERMINATIONS ARE MADE BASED ON ALL THE FACTS AND CIRCUMSTANCES APPLYING LONGESTABLISHED CRITERIA THE STATEMENT ADDED WE CONTINUE TO BELIEVE THAT THE INTERCORPORATE NOTES CONTAINED IN THE MIPS AND EPICS TRANSACTIONS IN WHICH WE HAVE PARTICIPATED CONSTITUTE DEBT FOR FEDERAL INCOMETAX PURPOSES A GOLDMAN SACHS OFFICIAL SAYS COMPANIES SHOULD PROCEED WITH CAUTION BUT THAT THERE IS NO REASON TO BELIEVE THEY SHOULD NOT CONTINUE WITH MIPS HE SAID THE TREASURY HAS CONFIRMED THAT THE CHARACTERIZATION OF SECURITIES SUCH AS MIPS IS BASED ON ALL THE FACTS AND CIRCUMSTANCES WE BELIEVE THIS SUGGESTS THAT A PROPERLY STRUCTURED MIPS TRANSACTION WILL BE RESPECTED AS DEBT WE ALSO BELIEVE THAT THE MIPS DEALS WE HAVE DONE TO DATE WILL BE RESPECTED AS DEBT 9404220127 940422 PARTNERS IN HIBERNIA OIL DEVELOPMENT FACE POSSIBLE HIGHER COSTS AND DELAYS BY TAMSIN CARLISLE STAFF REPORTER OF THE WALL STREET JOURNAL CALGARY ALBERTA PARTNERS IN CANADA'S HIBERNIA OFFSHORE OIL DEVELOPMENT SAID PRELIMINARY DATA SHOW POSSIBLE COST OVERRUNS OF ONE BILLION CANADIAN DOLLARS US7234 MILLION AND A ONEYEAR DELAY IN THE STARTUP PETROCANADA A CALGARY OIL AND GAS PRODUCER WITH A 25 EQUITY INTEREST IN HIBERNIA SAID ITS SHARE OF THE COSTS MAY INCREASE C250 MILLION TO ABOUT C14 BILLION THE COMPANY ALREADY HAS SPENT ABOUT C425 MILLION A SPOKESMAN SAID HIBERNIA'S OTHER OWNERS MOBIL CORP WITH A 331 STAKE CHEVRON CORP 269 MURPHY OIL CORP 65 AND THE CANADIAN GOVERNMENT 85 WOULD FACE SIMILAR INCREASES IN THEIR UPFRONT COSTS IF THE PRELIMINARY DATA ARE BORNE OUT MOBIL AND MURPHY OFFICIALS SAID THEY SAID THEY WON'T BE ABLE TO ASSESS THE FULL IMPACT OF THE SITUATION FOR SEVERAL MONTHS UNTIL THE PARTNERS HAVE STUDIED THE SITUATION AND JOINTLY AGREED ON A STRATEGY THE REPORT LINKS THE POSSIBLE EXTRA COSTS TO ENGINEERING WORK ON THE MASSIVE GRAVITY BASE STRUCTURE THAT WOULD SUPPORT DRILLING OPERATIONS IN THE ICEBERG INFESTED WATERS OFF CANADA'S ATLANTIC COAST PETROCANADA SAID CONSTRUCTION HAS BEEN DELAYED AND THAT THE FIRST OIL FROM HIBERNIA MAY NOT FLOW UNTIL 1998 A YEAR LATER THAN ANTICIPATED DENIS MOTE AN ANALYST WITH MAISON PLACEMENTS CANADA INC SAID THE PROJECTED COST OVERRUN FOR HIBERNIA WOULD ERODE PETROCANADA'S ASSET VALUE BY ABOUT C1 A SHARE BUT WOULD TRIM ONLY 10 CANADIAN CENTS A SHARE FROM ITS CASH FLOW WHICH HE HAD EARLIER PREDICTED WOULD BE C260 A SHARE IN 1994 HE SAID PETROCANADA'S BALANCE SHEET IS STRONG MAKING IT POSSIBLE FOR THE COMPANY TO FUND THE EXTRA SPENDING FROM CASH FLOW HIBERNIA PARTNERS INSIST THE PROJECT IS STILL VIABLE THIS WON'T IN OUR OPINION JEOPARDIZE THE PROJECT IT'S STILL A GOOD PROJECT SAID CARL THOMPSON PRESIDENT OF MURPHY'S WHOLLY OWNED CANADIAN OIL AND GAS SUBSIDIARY HIBERNIA HAS BEEN CRITIZED SINCE ITS INCEPTION FOR BEING A POLITICALLY INSPIRED SCHEME TO HELP ECONOMICALLY DEPRESSED NEWFOUNDLAND IT'S AN EXPENSIVE MAKEWORK PROJECT SAID FILIP PALDA A SENIOR ECONOMIST AT THE FRASER INSTITUTE VANCOUVER THE OIL IS ALMOST A MARGINAL CONSIDERATION HE SAID 9404220126 940422 TECHNOLOGY AT&T UNIT TO GET BIG SNET CONTRACT ON NETWORK OVERHAUL NEW YORK SOUTHERN NEW ENGLAND TELEPHONE CO CHOSE AT&T CORP'S NETWORK SYSTEMS UNIT TO PROVIDE MOST OF THE TRANSMISSION GEAR FOR A THREEYEAR 1 BILLION NETWORK OVERHAUL IN CONNECTICUT THE SNET PROJECT ENTAILS A NEW NETWORK CONNECTING 500000 CUSTOMERS OR 700000 LINES TO A NEW HIGHCAPACITY VOICE DATA AND VIDEO HIGHWAY IT IS PART OF A 15YEAR 45 BILLION OVERHAUL OF THE SNET NETWORK THE FINAL CONTRACT WHICH THE TWO COMPANIES EXPECT TO SIGN BY JULY IS SOMEWHAT SMALLER THAN THE MEGADEALS SIGNED WITH REGIONAL BELL COMPANIES BUT IT IS YET ANOTHER ENDORSEMENT OF AT&T'S DESIGN APPROACH FOR HIGHCAPACITY PUBLIC NETWORKS OF THE FUTURE WE'LL CONNECT 500000 HOMES TO INFORMATIONAGE SERVICES WITHIN THREE YEARS AND IT DEMONSTRATES THAT AT&T NETWORK SYSTEMS' APPROACH IS BECOMING A STANDARD IN THE INDUSTRY SAID CHARLOTTE DENENBERG SNET'S VICE PRESIDENT OF NETWORK TECHNOLOGY WHILE PHONE AND CABLE COMPANIES LAY PLANS FOR THESE BROADBAND NETWORKS AND SCRUTINIZE THE MERITS OF FIBEROPTIC LINES COMPARED WITH COAXIAL CABLES AT&T HAS DESIGNED A HYBRID SOLUTION THAT USES BOTH TECHNOLOGIES IN AT&T'S NETWORK DESIGN FIBEROPTIC SYSTEMS AND CABLES CONNECT COMMUNITIES TO PHONE CENTRAL OFFICE SWITCHING SYSTEMS WHILE COAXIAL CABLE REPLACES AGING TWISTEDPAIR PHONE LINES LEADING TO EACH HOME AND BUSINESS PACIFIC TELESIS GROUP'S PACIFIC BELL UNIT RECENTLY CHOSE AT&T'S APPROACH OVER OTHER SUPPLIERS SUCH AS NORTHERN TELECOM LTD FOR THE 5 BILLION FIRST LEG IN ITS 16 BILLION NETWORK OF THE FUTURE WE ARE CURRENTLY IN DISCUSSIONS WITH NETWORKSERVICE PROVIDERS THROUGHOUT THE COUNTRY SAID CARLETON FIORINA AT&T'S VICE PRESIDENT OF SALES AND MARKETING BUT SHE DECLINED TO IDENTIFY THESE POTENTIAL CUSTOMERS 9404220125 940422 ABREAST OF THE MARKET STOCKS RALLY 5383 POINTS BUOYED BY STRING OF BONDMARKET GAINS BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCKS RALLIED SMARTLY AS INVESTORS WERE ENCOURAGED BY A THIRD DAY OF SOLID GAINS IN THE BOND MARKET THE DOW JONES INDUSTRIAL AVERAGE JUMPED 5383 OR 15 TO 365254ITS BIGGEST ONEDAY ADVANCE SINCE APRIL 5 BROADBASED INDEXES MATCHED THE DOW'S ADVANCE AFTER WEEKS OF WORRYING ABOUT RISING INTEREST RATES STOCK INVESTORS WERE CHEERED AS THE BOND MARKET RECOVERY CONTINUED THE 30YEAR TREASURY JUMPED MORE THAN 1 1/8 POINTS ON TOP OF 1/2POINT RISES WEDNESDAY AND TUESDAY LONG YIELDS SLIPPED BACK DOWN TO 721 ANOTHER PSYCHOLOGICAL BOOST CAME IN THE CONTINUING FLOW OF EARNINGS NEWS INTERNATIONAL BUSINESS MACHINES RELEASED SURPRISINGLY STRONG FIRSTQUARTER RESULTS LIFTING ITS SHARES 6 1/8 TO 58 3/8 AND CONTRIBUTING NEARLY 15 POINTS TO THE INDUSTRIAL AVERAGE PROGRAM BUYING ALSO WAS A MAJOR FORCE ACCORDING TO BIRINYI ASSOCIATES A MARKET RESEARCH FIRM SIX BUY PROGRAMS ADDED A TOTAL OF ABOUT 43 POINTS TO THE INDUSTRIAL AVERAGE AT VARIOUS TIMES DURING THE SESSION ON THE NEW YORK STOCK EXCHANGE ADVANCING ISSUES SWAMPED DECLINERS 1573 TO 704 VOLUME ON THE EXCHANGE WAS HEAVY AT 378600000 SHARES UP FROM 362300000 SHARES WEDNESDAY AND THE HIGHEST SINCE MARCH 31 THE NEW YORK STOCK EXCHANGE'S COLLAR WHICH RESTRICTS PROGRAM TRADING WAS PUT INTO EFFECT IN THE FINAL MINUTES OF TRADING AS THE DOW JONES INDUSTRIAL AVERAGE TOPPED 50 POINTS FOR THE DAY IT HAD FLIRTED WITH THAT LEVEL FOR 90 MINUTES THE STANDARD & POOR'S 500 STOCK INDEX JUMPED 677 OR 153 TO 44873 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 352 OR 144 TO 24818 A TURNAROUND IN THE TECHNOLOGY GROUP AFTER SEVERAL DAYS OF STEEP LOSSES HELPED LIFT THE NASDAQ COMPOSITE INDEX 1322 OR 187 TO 71874 IT HAD FALLEN MORE THAN SEVEN POINTS EACH OF THE PREVIOUS THREE SESSIONS THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX INCREASED 353 OR 083 TO 43113 UTILITIES STOCKS WHICH MANY PEOPLE VIEW AS A LEADING INDICATOR FOR THE REST OF THE STOCK MARKET ADVANCED FOR A THIRD STRAIGHT DAY THE DOW JONES UTILITIES AVERAGE INCREASED 152 OR 076 TO 20116 CYCLICAL STOCKS WERE STRONG AFTER SEVERAL DAYS OF FIERCE SELLING TIED TO WORRIES THAT RECENT RISES IN INTEREST RATES WILL SLOW THE ECONOMY AND CRIMP CORPORATE PROFITS LATER THIS YEAR CHRYSLER INCREASED 2 TO 48 CATERPILLAR RALLIED 3 1/8 TO 106 5/8 USXUS STEEL ADDED 1 1/4 TO 34 3/8 AND DEERE ADVANCED 3 1/8 TO 78 3/4 TEXAS INSTRUMENTS JUMPED 6 3/4 TO 71 1/2 THE DALLAS ELECTRONICS COMPANY HAD EARNINGS OF 141 A SHARE IN THE FIRST QUARTER WELL ABOVE THE 89 CENTS IT POSTED BEFORE A CHARGE LAST YEAR SEPARATELY THE COMPANY SAID IT MIGHT LIFT ITS QUARTERLY DIVIDEND TO 25 CENTS FROM 18 CENTS TECHNICAL ANALYSTS SAID THAT AFTER THE LOSSES OF THE PAST SEVERAL SESSIONS THE STOCK MARKET WAS DUE FOR A SNAPBACK THE INDUSTRIAL AVERAGE IS NOW WITHIN 10 POINTS OF ITS LEVEL BEFORE MONDAY'S FEDERAL RESERVE CREDIT TIGHTENING WHICH TRIGGERED THE RECENT SELLING SOME ANALYSTS SAID THEY THINK YESTERDAY'S ENTHUSIASM COULD BE MORE THAN JUST A TECHNICAL RALLY AND INSTEAD COULD BE THE START OF A MORE SUSTAINED ADVANCE GAIL DUDACK A MARKET STRATEGIST AT SG WARBURG & CO SAID SHE DOESN'T EXPECT A SEVERE DOWNTURN IN THE ECONOMY BUT DOESN'T EXPECT A RETURN OF THE ROARING GAINS THAT WERE NOTCHED IN CYCLICALS EARLY THIS YEAR EITHER THE OPTIMISM ABOUT THE ECONOMY WAS TOO GREAT IN JANUARY AND THE FEAR AND PESSIMISM ABOUT THE SLOWDOWN IN 1994 WAS TOO GREAT WEDNESDAY SHE SAID IBM SURGED AFTER THE TROUBLED COMPUTER MAKER REPORTED A STRONGERTHANEXPECTED FIRSTQUARTER PROFIT FROM OPERATIONS OF ABOUT 54 CENTS A SHARE THE ARMONK NY COMPANY HAD A LOSS A YEAR AGO THE RESULTS PROMPTED ANALYSTS AT SEVERAL BROKERAGE FIRMS TO RAISE INVESTMENT RATINGS ON BIG BLUE'S SHARES 9404220124 940422 THE BUSINESS OF LAW LEGAL BEAT CONSUMER GROUPS REAP WINDFALL ON CLASS SUITS' UNCLAIMED FUNDS BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL CLASSACTION LAWSUITS AGAINST CORPORATE DEFENDANTS ARE PRODUCING AN UNUSUAL AND GROWING WINDFALL FOR CONSUMER GROUPS THAT HAD NO INVOLVEMENT IN THE PARTICULAR CASES WHEN PLAINTIFFS' ATTORNEYS WON A CLASSACTION SUIT AGAINST WELLS FARGO BANK FOR EXAMPLE THE CASE GENERATED 8 MILLION FOR BANK CUSTOMERS BUT IT ALSO PROVIDED SOME 3 MILLION TO ADVOCATES FOR BATTERED WOMEN THE DISABLED AND IMMIGRANT AND SINGLEPARENT FAMILIES AMONG OTHER INTERESTS THAT WAS THE RESULT OF A PLAN APPROVED LAST YEAR BY A JUDGE IN SAN FRANCISCO SUPERIOR COURT TO DISTRIBUTE UNCLAIMED FUNDS FROM THE CASE TO SEVERAL CONSUMERORIENTED GROUPS FOR ADVOCACY AND EDUCATIONAL PROGRAMS WE THINK THIS IS A GREAT DEAL SAYS HARRY SNYDER WEST COAST DIRECTOR FOR CONSUMERS UNION WHICH IS SCHEDULED TO RECEIVE ABOUT 700000 UNDER THE COURTAPPROVED PLAN OVER THREE YEARS OTHERS RECEIVING MONEY AS PART OF THE AGREEMENT INCLUDE THE VOLUNTEER LEGAL SERVICES PROGRAM OF THE BAR ASSOCIATION OF SAN FRANCISCO AND THE SAN FRANCISCO NEIGHBORHOOD LEGAL ASSISTANCE FOUNDATION ALTHOUGH THE PHENOMENON IS STILL RELATIVELY RARE JUDGES ACROSS THE COUNTRY HAVE BEEN FINDING SIMILAR WAYS TO SHORE UP CONSUMER AND CHARITABLE CAUSES IN RECENT YEARS FACED WITH THE PROSPECT OF RETURNING UNCLAIMED FUNDS TO DEFENDANTS WHO HAVE BEEN FOUND LIABLE OR WHO HAVE SETTLED CLAIMS OF WRONGDOING THE JUDGES HAVE BEEN RESORTING TO INCREASINGLY CREATIVE METHODS OF DISBURSING THE MONEY IN SAN FRANCISCO CONSUMERS UNION NOW GETS ABOUT 20 OF ITS ANNUAL BUDGET FROM SUCH SOURCES ACCORDING TO MR SNYDER AT THE SAME TIME THE TREND CONCERNS SOME CORPORATIONS AND CIVILJUSTICEREFORM PROPONENTS FOR ONE THING THEY SAY THE AWARDS OFTEN STRAY FROM THE PURPOSES OF THE UNDERLYING LITIGATION A FEDERAL JUDGE ONCE AWARDED A MUSEUM SEVERAL THOUSAND DOLLARS IN CONNECTION WITH FUNDS LEFT OVER FROM AN ANTITRUST CASE FOR EXAMPLE CRITICS ALSO VIEW THE AWARDS AS A WAY FOR PLAINTIFFS' ATTORNEYS AND CONSUMER GROUPS TO PERPETUATE LITIGATION SUCH GROUPS HAVE OFTEN WORKED CLOSELY TOGETHER OVER THE YEARS AND THE RECENT AWARDS HAVE BONDED THEM FURTHER SINCE THE ATTORNEYS USUALLY HAVE A ROLE IN DETERMINING HOW FUNDS ARE ALLOCATED OR MANAGED OTHERS SAY THE SHEER EXISTENCE OF MILLIONS OF DOLLARS IN UNCLAIMED FUNDS ALSO RAISES QUESTIONS ABOUT WHETHER THE MEMBERS OF THE PLAINTIFFS' CLASS ARE REALLY INTERESTED IN THE SUITS I HAVE JUST SCRATCHED MY HEAD IN TOTAL BEWILDERMENT SAYS BERNIE RICHTER A CALIFORNIA ASSEMBLYMAN WHO IS PUSHING LEGISLATION IN THE STATE THAT WOULD REQUIRE LEFTOVER FUNDS IN SUCH CASES TO REVERT TO THE STATE RATHER THAN TO PRIVATE PROGRAMS IT IS SOMETHING THAT CONCERNS US GREATLY SAYS A SPOKESMAN FOR THE CIVIL JUSTICE REFORM GROUP A NEW ALLIANCE OF FORTUNE 500 COMPANIES THAT IS LOOKING AT A NUMBER OF WAYS TO LIMIT ALLEGEDLY FRIVOLOUS LAWSUITS THE LEGAL CONCEPT FOR THE AWARDS COMES FROM THE LAW OF TRUSTS AND ESTATES WHICH GRANTS LEGAL REPRESENTATIVES DISCRETION TO ALTER THE WISHES OF THE DECEASED IF THEIR WISHES BECOME IMPOSSIBLE TO CARRY OUT IT IS THE NOTION THAT IF THERE IS A GIFT IN THE WILL THAT IS SUPPOSED TO GO TO A CHURCH AND THE CHURCH DISBANDS OR BURNS DOWN THEN THE TRUSTEE CAN GO TO COURT AND GET PERMISSION TO GIVE TO THE NEAREST SIMILAR CHURCH SAYS JACK COFFEE A COLUMBIA UNIVERSITY LAW PROFESSOR WHO FINDS THE APPLICATION OF THE CONCEPT TO THE CORPORATELAW ARENA TO BE STRETCHING IT A BIT BUT COURTS HAVE BEEN DOING JUST THAT A FEDERAL JUDGE IN CHICAGO LAST YEAR UPHELD AWARDS TO SUCH GROUPS AS THE AMERICAN CIVIL LIBERTIES UNION AND THE CHICAGO LAWYERS' COMMITTEE FOR CIVIL RIGHTS UNDER LAW IN A CASE THAT INVOLVED PRICEFIXING CHARGES AGAINST A BOTTLE MANUFACTURER A FEDERAL APPEALS COURT RULING IN A SEPARATE ANTITRUST CASE UPHELD THE DISTRIBUTION OF EXCESS FUNDS TO HELP PAY THE SALARIES OF SOME PUBLICINTEREST LAWYERS REPRESENTING AIDS PATIENTS AMONG OTHER CLIENTS THE WELLS FARGO CASE INVOLVED ALLEGATIONS THAT THE BANK HAD VIOLATED A CALIFORNIA LAW THAT LIMITS WHAT BANKS CAN CHARGE CREDITCARD CUSTOMERS FOR MAKING LATE PAYMENTS A CALIFORNIA JURY FOUND AGAINST THE BANK IN 1989 AND IT SET OUT TO MAKE REFUNDS WHICH AMOUNTED TO AN AVERAGE OF ROUGHLY 5 A CUSTOMER ACCORDING TO BANK DATA LATER WHEN IT BECAME APPARENT THAT EXTRA FUNDS WERE AVAILABLE THE PLAINTIFFS PROPOSED THAT THE MONEY BE SPENT ON HELPING CONSUMER GROUPS ADVISE LOWINCOME AND MODERATEINCOME INDIVIDUALS ON CREDIT AND FINANCE ISSUES ACCORDING TO THE COURT ORDER APPROVING THE PLAN WELLS FARGO OFFICIALS PERSUADED THE COURT TO INCLUDE SOME FUNDING FOR AN INDUSTRYSPONSORED GROUP THAT COUNSELS CONSUMERS ON CREDIT PROBLEMS BUT THEY'RE STILL CONCERNED ABOUT THE PRECEDENT THE DANGER IS THAT EVERYONE WILL LOOK AT IT VERY SUPERFICIALLY AND CONCLUDE THAT IT IS A WONDERFUL IDEA SAYS STEWART BAIRD A WELLS FARGO ATTORNEY WHO CONTENDS SUCH AWARDS MASK A MORE FUNDAMENTAL PROBLEM IT IS THE CLASSACTION PROCESS THAT IS SICK AND THE REMEDY IS NOT TO MORE EQUITABLY OR CHARITABLY DISTRIBUTE THE SPOILS ACCORDING TO MR BAIRD THE CONSUMER GROUPS AND THE PLAINTIFFS' ATTORNEYS BRINGING THE CASE AGAINST THE BANK TOGETHER RECEIVED NEARLY AS MUCH MONEY AS THE BANK CUSTOMERS ON WHOSE BEHALF THE CASE WAS BROUGHT HE SAYS BUT PATRICIA STURDEVANT THE SAN FRANCISCO ATTORNEY WHO FILED THE CASE AGAINST WELLS DEFENDS THE RESULT AND SHE IS CURRENTLY TRYING TO HELP FORM A NATIONAL ASSOCIATION OF CONSUMERLAW ATTORNEYS WHOSE AGENDA INCLUDES MORE CASES THAT WILL RESULT IN CONSUMER AWARDS SUCH GROUPS SHE SAYS ADVOCATE AND EDUCATE ON ISSUES THAT I KNOW MY CLIENTS WILL DERIVE BENEFIT FROM 9404220123 940422 WHO'S NEWS AIR METHODS CANCELS PREFERREDSTOCK OFFER NAMES NEW CHAIRMAN DENVER AIR METHODS CORP CANCELED A PREFERREDSTOCK OFFERING NAMED A NEW CHAIRMAN AND SAID IT PLANS TO CONTINUE A COSTCUTTING PROGRAM IN CANCELING THE OFFERING OF CONVERTIBLE PREFERRED STOCK THE PROVIDER OF AIRMEDICAL SERVICES CITED A CONTINUING DECLINE IN THE PRICE OF ITS COMMON STOCK THE COMPANY SAID THE OFFERING WOULD EXCESSIVELY DILUTE THE VALUE OF THE STAKE OF EXISTING SHAREHOLDERS AIR METHODS SAID IT WOULD CONTINUE STAFF CUTS THAT HAVE ALREADY REDUCED THE SIZE OF ITS WORK FORCE BY 10 BUT THE COMPANY SAID ITS COST CUTTING WON'T AFFECT THE SCOPE OF ITS BUSINESS MEANWHILE THE COMPANY NAMED GEORGE W BELSEY AN EXECUTIVE AT THE AMERICAN HOSPITAL ASSOCIATION CHAIRMAN HE SUCCEEDS W TERRANCE SCHREIER WHO REMAINS CHIEF EXECUTIVE THE COMPANY ALSO NAMED DONALD SEGNER AN AVIATION CONSULTANT VICE CHAIRMAN MR BELSEY AND MR SCHREIER WERE ALREADY DIRECTORS OF AIR METHODS AIR METHODS STOCK WHICH HAS FALLEN STEADILY FROM OVER 14 A SHARE LAST FALL TUMBLED 18 OR 75 CENTS TO 350 YESTERDAY IN NASDAQ STOCK MARKET TRADING 9404220122 940422 INTERNATIONAL ZEDILLO SEES ECONOMIC RISK FOR MEXICO PLANS NO BIG STEPS BY PAUL B CARROLL AND DIANNE SOLIS STAFF REPORTERS OF THE WALL STREET JOURNAL LEON MEXICO RULINGPARTY PRESIDENTIAL CANDIDATE ERNESTO ZEDILLO SAID IN AN INTERVIEW THAT HE THINKS MEXICO'S ECONOMIC SITUATION WILL REMAIN DICEY FOR THE NEAR FUTURE AND THAT ECONOMIC GROWTH THIS YEAR WON'T MEET THE GOVERNMENT'S 3 GOAL REFERRING TO THE REBELLION IN THE STATE OF CHIAPAS IN JANUARY AND THE ASSASSINATION LAST MONTH OF PRESIDENTIAL CANDIDATE LUIS DONALDO COLOSIO DR ZEDILLO SAID THAT THE ECONOMY WAS HAVING TO DEAL WITH SITUATIONS UNPRECEDENTED IN THE HISTORY OF OUR COUNTRY THE POPULATION IS VERY UNCERTAIN HE SAID THOUGH THAT HE THOUGHT THE POLITICAL UNCERTAINTY IN MEXICO SHOULD DISAPPEAR DURING THE NEXT FEW WEEKS AND THAT THE MEXICAN ECONOMY WAS FUNDAMENTALLY VERY STRONG I THINK THE ECONOMY CAN GROW AT A VERY SIGNIFICANT RATE IN 1995 AND THAT THE ECONOMY CAN SUSTAIN THE GROWTH RATES OF MORE THAN 6 OF THE LATE 1970S HE SAID HE JOKED AS A GOOD ECONOMIST I ALWAYS TRY TO AVOID PRECISE FORECASTS MANY BIG INVESTORS HAVE SAID THAT THE LOUSY PSYCHOLOGY THAT HAS AFFLICTED MEXICAN MARKETS FOR THE PAST MONTH WON'T CHANGE WITHOUT SOME STRONG ACTION FROM THE CURRENT GOVERNMENT OR SOME ENCOURAGING SIGN FROM DR ZEDILLO THE CANDIDATE OF THE LONGRULING INSTITUTIONAL REVOLUTIONARY PARTY OR PRI WHO IS FAVORED TO WIN THE AUG 21 ELECTIONS AND TAKE OFFICE LATE THIS YEAR INVESTORS' CONCERNS HAVE MOUNTED AS THE STOCK MARKET HAS TUMBLED EVEN WITH YESTERDAY'S 11736POINT RISE TO 207469 BECAUSE OF BARGAIN HUNTING THE IPC INDEX IS STILL DOWN 28 FROM ITS FEB 8 PEAK IN ADDITION INVESTORS HAVE VOICED CONCERN VERGING ON PANIC ABOUT THE FACT THAT BENCHMARK INTEREST RATES HAVE MORE THAN DOUBLED TO 18 IN THE PAST TWO MONTHS EVEN THAT SORT OF RISE HASN'T HELPED THE PESO WHICH INDICATES SERIOUS PROBLEMS FOR THE CURRENCY BUT DR ZEDILLO SAID HE DIDN'T HAVE ANYTHING MAJOR PLANNED THAT WOULD REASSURE INVESTORS QUICKLY RESERVING SUCH PRONOUNCEMENTS FOR THE GOVERNMENT HE SAID HE IS ONLY THINKING ABOUT 1995 HE DID SAY THAT HE PLANNED TO STIMULATE THE ECONOMY NEXT YEAR BY SPENDING MORE ON EDUCATION HEALTH AND BASIC SERVICES SUCH AS PAVING ROADS IN POOR COMMUNITIES HE SAID THE STIMULUS WOULD BE PART OF HIS FOCUS ON REFORMING THE MICROECONOMY MAKING WORKERS MORE EFFICIENT AND IMPROVING THEIR TRAINING SO THEY CAN MOVE INTO HIGHERPAYING JOBS BUT DR ZEDILLO SAID HE WOULD KEEP TIGHT CONTROLS ON SPENDING RATHER THAN RISK A RETURN TO THE HIGH INFLATION AND HEAVY DEBT THAT CRIPPLED MEXICO IN THE EARLY 1980S INVESTORS HAVE ALSO SAID THEY'RE LOOKING FOR ASSURANCES THAT DR ZEDILLO WILL WIN IN WHAT ARE PERCEIVED AS FAIR ELECTIONS BECAUSE FRAUD COULD ADD TO THE UNREST IN MEXICO AND A VICTORY BY THE OPPOSITION WOULD MEAN THAT PRESIDENT CARLOS SALINAS'S OPENMARKET POLICIES MIGHT BE CHANGED WHILE MR COLOSIO HAD BEEN CRITICIZED FOR AVOIDING THE STATE OF CHIAPAS AND ITS COMPLICATED REBELLION DR ZEDILLO MADE A BOLD UNANNOUNCED TRIP THERE YESTERDAY DR ZEDILLO SAID THAT IF ELECTED HE WILL FULFILL THE PROMISES THAT THE GOVERNMENT IS MAKING IN NEGOTIATIONS WITH THE REBELS THE 42YEAROLD CANDIDATE WAS INITIALLY CRITICIZED FOR APPEARING AWKWARD AND FOR COMING ACROSS SO MUCH AS THE YALE PHD HE IS THAT POOR MEXICANS COULDN'T IDENTIFY WITH HIM BUT HE HAS LEARNED TO EMPHASIZE THAT AS THE SON OF AN ELECTRICIAN HE GREW UP POOR AND HAD TO FIGHT FOR EVERYTHING HE HAS ACHIEVED ADDRESSING A DEMANDING CROWD WEDNESDAY IN A POVERTYSTRICKEN PART OF LEON AN OPPOSITION STRONGHOLD 200 MILES NORTH OF MEXICO CITY DR ZEDILLO WON PEOPLE OVER WITH AN ENERGETICALLY DELIVERED SPEECH IN WHICH HE MENTIONED THAT HE TOO HAD GROWN UP IN A NEIGHBORHOOD WITHOUT RUNNING WATER AND WITH UNPAVED ROADS I WANT TO BE THE PRESIDENT OF THE POOR OF MEXICO DR ZEDILLO TOLD THEM AT A RALLY EARLIER IN THE WEEK WHEN A SHOESHINE BOY OFFERED TO SHINE HIS SHOES DR ZEDILLO TURNED THE TABLES AND SHINED THE GLEEFUL BOY'S LEADING TO A WIDELY DISTRIBUTED PHOTOGRAPH DR ZEDILLO EXPLAINED IN THE INTERVIEW THAT HE USED TO BE A SHOESHINE BOY HIMSELF HAVING CUT A DEAL IN WHICH HE GAVE PART OF HIS EARNINGS TO A PRIEST IN RETURN FOR THE RIGHT TO SHINE SHOES OUTSIDE MASS ON SUNDAY MORNINGS DR ZEDILLO STILL FACES PLENTY OF CHALLENGES HE HAS JUST FOUR MONTHS TO PUT TOGETHER A CAMPAIGN THAT WILL UNIFY HIS PARTY AND WIN THE ELECTIONS AND MOST OF THAT WORK HAS TO BE DONE BY MIDJUNE BECAUSE ONCE THE WORLD CUP SOCCER CHAMPIONSHIP STARTS MEXICANS WILL FOCUS ON THEIR TROUBLINGLY INCONSISTENT NATIONAL TEAM AT THIS POINT THE CAMPAIGN HAS YET TO REPLACE MR COLOSIO'S NAME WITH DR ZEDILLO'S ON MORE THAN A TINY PERCENTAGE OF THE SIGNS PAINTED AROUND THE COUNTRY STILL RECENT POLLS SHOW DR ZEDILLO WITH A COMFORTABLE MARGIN AN INDEMERC/LOUIS HARRIS POLL RELEASED THIS WEEK FOUND THAT 58 OF MEXICANS WOULD VOTE FOR DR ZEDILLO IF THE ELECTIONS WERE HELD NOW COMPARED WITH JUST 22 FOR THE SECONDPLACE CUAHTEMOC CARDENAS THE CANDIDATE OF THE PRD 9404220121 940422 STORAGE TECHNOLOGY HAD 196 MILLION LOSS IN THE FIRST QUARTER LOUISVILLE COLO STORAGE TECHNOLOGY CORP REPORTED A FIRSTQUARTER NET LOSS OF 196 MILLION OR 52 CENTS A SHARE COMPARED WITH A PROFIT LAST YEAR AS REVENUE DECLINED SLIGHTLY THE MAKER OF COMPUTERSTORAGE DEVICES ALSO SAID THAT ITS LONGDELAYED ICEBERG DISK SYSTEM IS TARGETED FOR REVENUE IN THE SECOND QUARTER IT SAID THAT MORE THAN 30 CUSTOMER SITES NOW HAVE ICEBERG SYSTEMS AND THAT IT WILL REACH 40 CUSTOMER SITES IN THE NEXT FEW DAYS STORAGE TECH HASN'T COUNTED THE EARLY SHIPMENTS AS REVENUE REGARDING THEM AS TEST INSTALLATIONS PREDICTING REVENUE FOR THE PRODUCT IS A SIGN THAT ICEBERG IS FINALLY READY TO MARKET CUSTOMERS AND INVESTORS HAVE BEEN AWAITING ICEBERG FOR NEARLY TWO YEARS STORAGE TECHNOLOGY ANNOUNCED IT WAS IMMINENT IN 1992 BUT THEN ADMITTED IT DIDN'T YET WORK ICEBERG IS COMPOSED OF MANY SMALL DISKS IN A SINGLE SYSTEM THAT WORK TOGETHER AND AUTOMATICALLY BACK UP EACH OTHER TO PREVENT LOST DATA THE COMPANY REPORTED ITS RESULTS LATE IN THE DAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING STORAGE TECHNOLOGY STOCK ROSE 2625 TO CLOSE AT 29 THE FIRSTQUARTER LOSS INCLUDES PAYMENT OF 7 MILLION TO UNISYS CORP TO SETTLE LITIGATION STORAGE TECH SAID IT ALSO TOOK A 75 MILLION WRITEDOWN OF SOME OLDER DISK DRIVE INVENTORIES IN THE YEAREARLIER FIRST QUARTER THE COMPANY EARNED 44 MILLION OR 1 A SHARE AFTER A GAIN FROM AN ACCOUNTING CHANGE OF 40 MILLION OR 92 CENTS A SHARE REVENUE IN THE LATEST QUARTER FELL 1 TO 3356 MILLION FROM 339 MILLION 9404220120 940422 GIANT RESERVATIONS SYSTEM TO DUMP SOUTHWEST BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL STARTING NEXT MONTH TRAVEL AGENTS HOOKED UP TO THE APOLLO AIRLINERESERVATIONS SYSTEM THE NATION'S SECOND LARGEST WON'T EASILY FIND INFORMATION ABOUT SOUTHWEST AIRLINES ON THEIR COMPUTERS APOLLO TRAVEL SERVICES HAS TOLD THE HIGHLY SUCCESSFUL DALLASBASED AIRLINE THAT IT WILL TAKE ITS FARES AND SCHEDULES OFF ITS LISTS AND THAT APOLLO USERS' COMPUTERS WON'T PRINT SOUTHWEST TICKETS TWO OTHER OF THE FOUR MAJOR RESERVATIONS SYSTEMS ALSO PLAN TO LIMIT THE INFORMATION BUT NOT THE TICKETWRITING ABILITY SOUTHWEST ISN'T THE ONLY AIRLINE THAT WILL BE CUT FROM THE RESERVATIONS SYSTEMS ABOUT 300 OTHER CARRIERS TINY FOREIGN AIRLINES AND LITTLEKNOWN CHARTERS ALSO WILL DISAPPEAR BUT SOUTHWEST IS CONVINCED THE ACTION IS DIRECTED SOLELY AT IT JAMES PARKER SOUTHWEST'S VICE PRESIDENT AND GENERAL COUNSEL POINTS OUT THAT GALILEO INTERNATIONAL A GLOBAL RESERVATIONS SYSTEM MARKETED IN THE US BY APOLLO IS PART OF A CONSORTIUM IN WHICH UAL CORP'S UNITED AIRLINES AND USAIR GROUP INC ARE BOTH OWNERS UNITED IS LOOKING TO START A SHORTHAUL SERVICE LIKE SOUTHWEST'S AND USAIR JUST STARTED ONE ON THE EAST COAST I DON'T THINK THIS IS A COINCIDENCE MR PARKER SAYS FOR THEIR PART THE COMPUTER RESERVATIONS SYSTEMS SAY THEY CAN'T AFFORD TO LIST SOUTHWEST ANYMORE PENNYPINCHING SOUTHWEST ALWAYS HAS BOASTED ABOUT HOLDING DOWN COSTS NO MEALS NO ASSIGNED SEATS AND NO BOOKING FEES TO EXPENSIVE COMPUTERRESERVATIONS SYSTEMS IT IS INHERENTLY UNFAIR TO GALILEO INTERNATIONAL THAT SOME AIRLINES ARE RECEIVING SERVICES FREE OF CHARGE SAYS GRAHAM ROSE GENERAL MANAGER OF CORPORATE COMMUNICATIONS FOR GALILEO EVERY OTHER MAJOR AIRLINE BUT SOUTHWEST JOINS ALMOST EVERY RESERVATIONS SYSTEM AND PAYS A FEE OF ABOUT 250 FOR EVERY ROUND TRIP BOOKED THE NEW RULES ARE LIKELY TO AFFECT HOW THOUSANDS OF THE NATION'S TRAVEL AGENTS DO BUSINESS AND COULD INCONVENIENCE THE TRAVELERS THEY SERVICE APOLLO HAS TOLD AGENTS THAT IF THEY WANT TO BOOK SOUTHWEST THEY WILL HAVE TO WRITE THE TICKETS BY HAND A LABORIOUS PROCEDURE THAT CAN TAKE UP TO A HALF HOUR TO PERFORM AND THAT AGENTS HAVEN'T DONE ROUTINELY IN MORE THAN A DECADE THAT'S EXPENSIVE FOR THE AGENCIES WHOSE 10 COMMISSIONS DON'T GO VERY FAR ON SOUTHWEST'S LOW FARES WINDSOR TRAVEL IN HOUSTON IS LOOKING TO HIRE AN EMPLOYEE WHOSE SOLE JOB WILL BE TO FILL OUT HANDWRITTEN TICKETS YOU CANNOT TELL YOUR CLIENTS YOU CAN'T DO IT IF WE TELL THEM THAT THEY'LL FIND SOMEONE WHO WILL SAYS PAT DICKINSON OWNER OF 101 TRAVEL IN WESTLAKE VILLAGE CALIF OTHER RESERVATIONS NETWORKS SYSTEM ONE AND WORLDSPAN ALSO CITE COST AS THEIR REASON FOR BUMPING SOUTHWEST IT MEANS A LOT OF LOST REVENUE FOR US PARTICULARLY WHEN YOU HAVE A NONPAYER MAIRLINE GROWING AT THE EXPENSE OF A FULL PARTICIPANT SAYS AL LENZA VICE PRESIDENT FOR PLANNING AND BUSINESS DEVELOPMENT FOR SYSTEM ONE WHICH IS OWNED BY CONTINENTAL AIRLINES ON TUESDAY IT WILL UNVEIL NEW RESTRICTIONS WORLDSPAN JOINTLY OWNED BY DELTA AIR LINES TRANS WORLD AIRLINES NORTHWEST AIRLINES AND A SINGAPOREBASED COMPUTERRESERVATIONS SYSTEM PLANS TO LIMIT ACCESS TO SOUTHWEST IN A TWOSTEP PROCESS STARTING IN JUNE WHILE SOUTHWEST PAYS FEES TO AMR CORP'S SABRE SYSTEM IT SELECTED A LOWERLEVEL OPTION THAT ALLOWS AGENTS TO TICKET THROUGH THE SYSTEM ONLY AFTER THEY CALL SOUTHWEST DIRECTLY FOR RESERVATIONS WE'VE NEVER PAID ANY FEES TO ANY OTHER OF THESE SYSTEMS AND DON'T PLAN TO MR PARKER SAID AT THE ROOT OF THE PROBLEM OF COURSE IS THE COST OF BEING A MEMBER OF ONE OF THE FOUR MAJOR NETWORKS IT ISN'T CHEAP A SOUTHWEST SPOKESMAN ESTIMATES IT WOULD COST THE AIRLINE BETWEEN 100 MILLION AND 125 MILLION TO PARTICIPATE IN THE MAJOR US SYSTEMS SOUTHWEST HAS HAD AN UNBROKEN 21YEAR STRING OF ANNUAL PROFITS IN RECENT YEARS NET INCOME HAS RANGED FROM 331 MILLION IN 1991 TO 1543 MILLION LAST YEAR ITS BEST YEAR EVER SOUTHWEST WAS ABLE TO SKATE THROUGH AS A NONMEMBER FOR SO LONG BECAUSE UNTIL RECENTLY IT REPRESENTED ONLY A TINY FRACTION OF THE DOMESTIC AIRTRAVEL MARKET OTHER AIRLINES HOWEVER HAVE LONG CONTENDED THAT SOUTHWEST'S STANCE GIVES IT AN UNFAIR EDGE WE'VE COMPETED HEADTOHEAD WITH SOUTHWEST OVER ALL THESE YEARS AND THEY'VE HAD AN ADVANTAGE ON A COST ISSUE SAYS A SPOKESMAN FOR PHOENIXBASED AMERICA WEST AIRLINES ANGELA SCHWARTZ A VICE PRESIDENT AT WINDSOR TRAVEL IN HOUSTON A PRIME SOUTHWEST MARKET SHOWS HOW INCONVENIENT HANDWRITING A TICKET WILL BE SHE PULLS OUT A BLANK TICKET STUB AND SHOWS THE 31 SEPARATE TINY BOXES THAT MUST BE FILLED IN WITH FLIGHT FARE AND SCHEDULE INFORMATION TODAY SOUTHWEST CHAIRMAN HERBERT D KELLEHER IS SCHEDULED TO MEET WITH MEMBERS OF THE AMERICAN SOCIETY OF TRAVEL AGENTS WHICH WANTS TO GET THE ISSUE RESOLVED IN A MANNER THAT WILL LEAST INCONVENIENCE ITS MEMBERS SOUTHWEST SAYS IT WILL DEFEND ITS STANCE AND ENSURE THE SALE OF SEATS BUT WON'T BE SPECIFIC ABOUT ITS PLANS IN THE MEANTIME TRAVEL AGENTS ARE LOOKING TO SOLVE WHAT COULD BE ANOTHER RAMIFICATION OF THE DISPUTE AFTER 10 YEARS OF COMPUTERS GENERATING TICKETS IT ISN'T CLEAR IF THERE'S A BIG ENOUGH INVENTORY OF THE OLDFASHIONED TICKETS ANYWHERE 9404220119 940422 PETRIE TO SHED STORES STAKE IN TOYS R' US COMPLEX DEAL WILL DISSOLVE APPAREL CHAIN'S PARENT AS FOUNDER CASHES OUT BY PATRICK M REILLY AND GARY PUTKA STAFF REPORTERS OF THE WALL STREET JOURNAL IN A MOVE THAT WILL DISSOLVE THE PARENT COMPANY PETRIE STORES CORP HAS PUT ITS 1700 APPAREL STORES UP FOR SALE AND WILL DISTRIBUTE ITS 13 BILLION STAKE IN TOYS R US INC TO SHAREHOLDERS THE MOVE IN EFFECT CASHES OUT CHAIRMAN MILTON PETRIE WHOSE COMPANY IS TOYS R US'S LARGEST SHAREHOLDER FROM ONE OF HIS MOST LUCRATIVE INVESTMENTS AND ENDS HIS LEADERSHIP ROLE IN PETRIE A COMPANY HE FOUNDED IN 1929 AS A HOSIERY STORE IN DEPRESSIONERA CLEVELAND IN A COMPLEX DEAL MEANT TO SIDESTEP POTENTIALLY HEAVY TAX LIABILITIES PETRIE STORES NOW BASED IN SECAUCUS NJ WILL EXCHANGE ITS 14 STAKE IN TOYS R US FOR NEW SHARES WHILE SEEKING A BUYER FOR THE RETAILING OPERATIONS WHICH ANALYSTS AND INDUSTRY EXPERTS SAID COULD FETCH 250 MILLION THE DEAL INVOLVES AN EXCHANGE OF SHARES BETWEEN THE COMPANIES CONSTITUTING A TAXFREE MERGER OF SORTS TAX EXPERTS SAY THE NEED TO AVOID A HUGE IMMEDIATE TAX LIABILITY IS GREAT BECAUSE SINCE PETRIE STORES PURCHASED THE TOYS R US STAKE AT AN AVERAGE COST OF LESS THAN 1 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY TOYS R US SHARES ROSE 75 CENTS TO 3375 A SHARE PETRIE STORES SHARES ROSE 1375 A SHARE TO 25625 IN BIG BOARD TRADING VOLUME WAS NEARLY ONE MILLION SHARES COMPARED WITH THE AVERAGE TRADING VOLUME OF 49000 ROBERT WILLENS A TAX AND ACCOUNTING ANALYST AT LEHMAN BROTHERS SAID TOYS R US IS ESSENTIALLY MERGING WITH PETRIE AND THEN DISTRIBUTING THE PROCEEDS FROM THE SALE OF PETRIE'S ASSETS TO PETRIE SHAREHOLDERS IN THE FORM OF TOYS R US SHARES IF PETRIE WERE TO DISTRIBUTE ITS TOYS R US STAKE TO SHAREHOLDERS IN A MORE STRAIGHTFORWARD MANNER WITHOUT LIQUIDATING ALL ITS ASSETS IT WOULD FACE A FEDERAL AND STATE CAPITAL GAINS TAX LIABILITY OF NEARLY 600 MILLION MR WILLENS SAID THE TRANSACTION IS SUBJECT TO APPROVAL BY HOLDERS OF TWOTHIRDS OF PETRIE STORES SHARES THE COMPANY SAID THE DEAL MAY BE TERMINATED IF NOT CLOSED BY JAN 28 1995 IT COULD ALSO FALL APART IF BY NOV 15 THE INTERNAL REVENUE SERVICE RULES UNFAVORABLY ON THE TRANSACTION OR IF PETRIE HAS NOT ADEQUATELY REDUCED ITS CONTINGENT LIABILITIES IN THE TRANSACTION TOYS R US WILL ISSUE 371 MILLION NEW SHARES FOR THE 404 MILLION SHARES THAT PETRIE NOW HOLDS THE 33 MILLION SHARE DIFFERENCE VALUED AT ABOUT 115 MILLION IN ESSENCE IS A PAYMENT TO TOYS R US FOR AGREEING TO A DEAL THAT GIVES TAX BENEFITS TO PETRIE THE AGREEMENT ALSO CALLS FOR PETRIE TO SELL OR SPIN OFF ITS RETAIL STORES AND USE ALL OF THOSE PROCEEDS NET OF LIABILITIES TO BUY ADDITIONAL TOYS R US SHARES PETRIE WILL BE LEFT WITH A TOTAL OF ABOUT 40 MILLION TOYS R US SHARES THAT WILL BE DISTRIBUTED TO PETRIE SHAREHOLDERS IT LOOKS EXACTLY LIKE A REGULAR MERGER SAID MR WILLENS WHO SAYS HE EXPECTS INTERNAL REVENUE SERVICE APPROVAL FOR THE DEAL WHILE TAX EXPERTS CONSIDER THE DEAL A PRACTICAL MERGER MR WILLENS NOTED THAT UNLIKE A TYPICAL CORPORATE MERGER TOYS R US IS NOT ASSUMING ANY OF PETRIE STORE'S LIABILITIES MICHAEL GOLDSTEIN TOYS R US CHIEF EXECUTIVE OFFICER SAID REDUCING SHARES OUTSTANDING BY 33 MILLION IS A NICE PLUS TO THE EQUITY OF TOYS R US AS A SECOND ADVANTAGE HE SAID WE HAVE AN ORDERLY DISTRIBUTION OF WHAT IS NOW A 14 SHAREHOLDING REMOVING THE POSSIBILITY OF AN OPENMARKET SALE OF PETRIE'S STAKE WHICH COULD DRIVE DOWN THE PRICE OF TOYS R US SHARES THE SHARE EXCHANGE AND DISTRIBUTION BRINGS TO A CLOSE A RELATIONSHIP BETWEEN MR PETRIE AND CHARLES LAZARUS TOYS R US'S FOUNDER AND CHAIRMAN THAT WAS NOT ALWAYS SO AMICABLE PETRIE'S STAKE IN TOYS R US BUILT UP IN THE TOY RETAILER'S FORMATIVE YEARS BY 1988 HAD REACHED AS HIGH AS 26 LEADING TO SPECULATION THAT PETRIE STORES WOULD TRY A TAKEOVER BUT AS PETRIE'S FORTUNES EBBED AND TOYS R US GREW THAT PROSPECT FADED ANALYSTS AND INVESTORS IN RECENT YEARS HAVE WONDERED HOW MR PETRIE WHO IS 91 YEARS OLD AND NOW IN ILL HEALTH WOULD HANDLE THE ISSUE OF CONTINUING THE MODERATELY PRICE WOMEN'S APPAREL STORES AS WELL AS CASHING IN THE TOYS R US INVESTMENT MR PETRIE STARTED BUYING THE SHARES IN 1978 AFTER BEING IMPRESSED WITH A TOYS R US OUTLET HE VISITED HE PAID AN AVERAGE 57 CENTS A SHARE FOR THE INVESTMENT TAKING INTO ACCOUNT SUBSEQUENT SPLITS THE PETRIE OPERATIONS HAVE HAD FAR LESS DRAMATIC SUCCESS HOWEVER PETRIE STORES WHICH OPERATE UNDER NAMES SUCH AS MARIANNE STUARTS G&G JEAN NICOLE AND WINKLEMAN'S IN SHOPPING MALLS AND STRIP SHOPPING CENTERS HAD SALES OF 148 BILLION IN ITS FISCAL YEAR ENDED JAN 29 AND A NET LOSS OF 379 MILLION MR PETRIE AN ARDENT PHILANTHROPIST WHO FREQUENTLY AIDS INDIVIDUALS IN DIRE STRAITS WAS RECENTLY HOSPITALIZED AND ABOUT A YEAR AGO REMOVED HIMSELF FROM DAYTODAY MANAGEMENT RESPONSIBILITY AT PETRIE STORES THE COMPANY SAID YESTERDAY THAT MR PETRIE WHO OWNS ABOUT 60 OF THE COMPANY'S STOCK OUTSTANDING OR ABOUT 28 MILLION SHARES HAS AGREED TO VOTE HIS SHARES IN FAVOR OF THE TRANSACTION MR PETRIE'S 66YEAROLD WIFE CARROLL IS A PETRIE BOARD MEMBER BUT IS NOT INVOLVED IN OPERATIONS SALE OPTIONS THE STOCK EXCHANGE PETRIE STORES SAID ALSO DEPENDS ON THE SALE OF ITS STORES PETRIE'S MANAGEMENT LED BY ALLAN LAUFGRABEN PRESIDENT AND CHIEF EXECUTIVE IS CONSIDERING A NUMBER OF OPTIONS INCLUDING A RIGHTS OFFERING IN WHICH CURRENT SHAREHOLDERS COULD PURCHASE SHARES IN A NEW HOLDING COMPANY FOR ITS RETAIL OPERATIONS OR A PUBLIC OFFERING OF SHARES IN A NEW HOLDING COMPANY BUT A MORE LIKELY OPTION IS THE SALE OF PETRIE STORES TO AN OUTSIDE BUYER PETRIE STORES HAS TALKED WITH SEVERAL POTENTIAL BUYERS AND SAID IT HAS RECEIVED INDICATIONS OF INTEREST IN THE RANGE OF 200 MILLION TO 250 MILLION SENIOR MANAGEMENT IS IN TALKS WITH ONE BUYER WHO IS CONSIDERING AN ALLEQUITY PROPOSAL IN SUCH A RANGE IN THE CASE OF ANY SALE PETRIE SAID OPERATIONS WILL CONTINUE UNINTERRUPTED AND SENIOR MANAGEMENT WILL REMAIN IN PLACE PETRIE SHAREHOLDERS AT CLOSING WOULD RECEIVE TOYS R US STOCK CERTIFICATES AS WELL AS A CERTIFICATE FOR THE SHAREHOLDER'S INTEREST IN THE LIQUIDATING TRUST A LIQUIDATING TRUST WILL HOLD AN AMOUNT TO COVER CONTINGENT LIABILITIES PRIMARILY EXISTING STORE LEASES AT THE TIME OF THE CLOSING A SHAREHOLDER WHO CHOSE TO SELL THE NEWLY ISSUED TOYS R US STOCK WOULD PAY A GAIN BASED ON THE ORIGINAL PRICE OF PETRIE SHARES 9404220118 940422 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED APRIL 15 ACCOUNTED FOR 154 OR AN AVERAGE 421 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME THIS INCLUDED PROGRAM TRADING ASSOCIATED WITH THE APRIL 15 MONTHLY EXPIRATION OF STOCKINDEX OPTIONS AND FUTURES BROKERAGE FIRMS EXECUTED AN ADDITIONAL 145 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 443 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 501 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 511 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AND 443 FOR THEIR CUSTOMERS ANOTHER 46 WAS CUSTOMER FACILITATION IN WHICH FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOST ACTIVE FIRMS NOMURA SECURITIES SUSQUEHANNA AND UBS SECURITIES EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY AND MERRILL LYNCH DID MOST OF THEIR TRADING FOR THEIR CUSTOMERS SOURCE NEW YORK STOCK EXCHANGE END 9404220117 940422 BUSINESS BRIEF CADILLAC FAIRVIEW INC REAL ESTATE COMPANY SAYS IT RECEIVED BRIDGE CREDIT CADILLAC FAIRVIEW INC INC A CANADIAN REAL ESTATE CONCERN THAT IS CLOSELY HELD BY A GROUP OF MAINLY US PENSION FUNDS SAID ITS BANKS HAVE PROVIDED IT WITH AN UNSPECIFIED AMOUNT OF BRIDGE FINANCING TO HELP IT FINANCE OPERATIONS WHILE IT CONTINUES TO NEGOTIATE THE TERMS OF A DEBTRESTRUCTURING PLAN WITH INVESTORS TORONTOBASED CADILLAC FAIRVIEW INC IS SEEKING TO RESTRUCTURE MORE THAN ONE BILLION CANADIAN DOLLARS US7253 MILLION OF DEBT IN THE WAKE OF A FURTHER DETERIORATION IN THE VALUE OF ITS REAL ESTATE HOLDINGS THE COMPANY SAID IT RETAINED SCOTIA MCLEOD INC A TORONTOBASED INVESTMENT DEALER TO SOLICIT EXPRESSIONS OF INTEREST FROM POSSIBLE INVESTORS CADILLAC FAIRVIEW INC IS ONE OF CANADA'S LARGEST REAL ESTATE COMPANIES WITH INTERESTS IN MALLS AND OFFICE BLOCKS IN LARGE US AND CANADIAN CITIES 9404220116 940422 YOUR MONEY MATTERS WEEKEND REPORT MAKE A CHILD A MILLIONAIRE JUST TAKE YOUR TIME BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL THANKS A MILLION EVEN IF YOU HAVEN'T GOT A LOT OF MONEY YOU CAN EASILY GIVE 1 MILLION OR MORE TO YOUR CHILDREN GRANDCHILDREN OR FAVORITE CHARITY ALL IT TAKES IS A SMALL INITIAL INVESTMENT AND A LOT OF TIME SUPPOSE YOUR 16YEAROLD DAUGHTER PLANS TO TAKE A SUMMER JOB WHICH WILL PAY HER AT LEAST 2000 BECAUSE SHE HAS EARNED INCOME SHE CAN OPEN AN INDIVIDUAL RETIREMENT ACCOUNT IF YOU WOULD LIKE TO HELP FUND HER RETIREMENT KENNETH KLEGON A FINANCIAL PLANNER IN LANSING MICH SUGGESTS GIVING HER 2000 TO SET UP THE IRA HE THEN ADVISES DOING THE SAME IN EACH OF THE NEXT FIVE YEARS SO THAT YOUR DAUGHTER STASHES AWAY A TOTAL OF 12000 RESULT IF THE MONEY IS INVESTED IN STOCKS AND STOCKS DELIVER THEIR HISTORICAL AVERAGE ANNUAL RETURN OF 10 YOUR DAUGHTER WILL HAVE MORE THAN 1 MILLION BY THE TIME SHE TURNS 65 BECAUSE OF THE CORROSIVE EFFECT OF INFLATION THAT 1 MILLION WILL ONLY BUY A QUARTER OF WHAT 1 MILLION BUYS TODAY PRESUMING THE COST OF LIVING RISES AT 3 A YEAR NONETHELESS YOUR 12000 GIFT WILL GO A LONG WAY TOWARD PAYING FOR YOUR DAUGHTER'S RETIREMENT THE HUGE GAIN IS POSSIBLE BECAUSE OF THE WAY STOCKMARKET COMPOUNDING WORKS WITH MONEY EARNED EACH YEAR NOT ONLY ON YOUR INITIAL INVESTMENT BUT ALSO ON THE GAINS ACCUMULATED FROM EARLIER YEARS THE BEAUTY OF THIS STRATEGY IS THAT IT WILL GROW TAXDEFERRED MR KLEGON SAYS THERE'S NO COST YOU CAN SET UP AN IRA WITH A NOLOAD MUTUAL FUND FOR NOTHING SIMILARLY MR KLEGON SAYS ONCE YOUR CHILDREN ENTER THE WORK FORCE FULL TIME YOU CAN ENCOURAGE THEM TO PARTICIPATE IN THEIR COMPANY'S 401K PLAN BY REIMBURSING THEM FOR THEIR CONTRIBUTIONS FOR YOUNGER CHILDREN PARENTS OFTEN USE CUSTODIAL ACCOUNTS WHICH RECEIVE FAVORABLE TAX TREATMENT BUT WITH THESE ACCOUNTS CHILDREN GAIN ACCESS TO THE MONEY WHEN THEY REACH THE AGE OF MAJORITY WHICH IN MOST STATES IS 18 OR 21 AS A RESULT WHILE CUSTODIAL ACCOUNTS MIGHT BE USEFUL FOR FUNDING A COLLEGE EDUCATION THEY AREN'T A GOOD VEHICLE IF YOU ARE AIMING FOR STOCKMARKET COMPOUNDING ON A GRAND SCALE AS AN ALTERNATIVE CONSIDER A VARIABLE ANNUITY FOR YOUR YOUNGSTER ADVISES MICHAEL VAN DEN AKKER A PARTNER IN PRICE WATERHOUSE'S FINANCIALPLANNING GROUP UNLIKE AN IRA YOU DON'T EVEN HAVE TO HAVE SOME EARNED INCOME TO FUND A VARIABLE ANNUITY HE NOTES BUT MR VAN DEN AKKER WARNS THAT A VARIABLE ANNUITY IS SIMILAR TO AN IRA IN THAT THE MONEY IS LOCKED UP UNTIL AGE 59 1/2 IF THE MONEY IS WITHDRAWN BEFORE THAT AGE THERE'S GENERALLY A 10 TAX PENALTY ON THE TAXABLE AMOUNT WITHDRAWN IN ADDITION TO THE REGULAR INCOME TAXES THAT ARE DUE MR VAN DEN AKKER SUGGESTS USING A LOWCOST VARIABLE ANNUITY SUCH AS THOSE OFFERED BY FIDELITY INVESTMENTS AND VANGUARD GROUP BOTH FIDELITY AND VANGUARD SAY THEY WOULD OPEN AN ACCOUNT FOR A CHILD AS LONG AS AN ADULT IS NAMED AS A CUSTODIAN FOR THE ACCOUNT FIDELITY'S ANNUITY DEMANDS A 2500 MINIMUM INVESTMENT WHILE AT VANGUARD THE MINIMUM IS 5000 BY BUYING A VARIABLE ANNUITY WHEN YOUR CHILD IS YOUNG YOUR INITIAL INVESTMENT HAS TIME TO BALLOON INTO A HUGE AMOUNT IMAGINE YOU PUT 5000 IN A VARIABLE ANNUITY FOR YOUR SON WHEN HE IS FOUR YEARS OLD AT AGE 60 HE WILL HAVE MORE THAN 1 MILLION PRESUMING THE MONEY IS INVESTED IN STOCKS THAT EARN 10 A YEAR FUNDING A CHILD'S RETIREMENT PLAN OR VARIABLE ANNUITY HAS TWO BIG ADVANTAGES INVESTMENT ADVISERS SAY FIRST THE MONEY GROWS TAXDEFERRED SECOND THE BENEFICIARY IS DISCOURAGED FROM SPENDING THE MONEY UNTIL AGE 59 1/2 BECAUSE OF THE TAX PENALTIES AS A RESULT BEFORE THE BENEFICIARIES GET THEIR HANDS ON THE MONEY YOUR GIFT WILL ENJOY THE SUBSTANTIAL GROWTH THAT CAN COME FROM YEARS OF STOCKMARKET COMPOUNDING YOU GET THE SAME TWO ADVANTAGES WITH SOME CHARITABLEGIFT PROGRAMS SOME INVESTMENT ADVISERS FOR INSTANCE RECOMMEND USING FIDELITY'S CHARITABLE GIFT FUND WITH THE FIDELITY PROGRAM YOU CAN CONTRIBUTE NOW AND DECIDE LATER WHERE THE MONEY WILL GO IN THE MEANTIME YOUR INITIAL INVESTMENT WILL HAVE THE CHANCE TO GROW TAXFREE WE HAVE PEOPLE WHO OPEN AN ACCOUNT GET THE IMMEDIATE TAX DEDUCTION AND THEN ARE LETTING IT GROW FOR FIVE 10 OR 20 YEARS SAYS THE FUND'S PRESIDENT JAMIE JAFFEE SHE SAYS FAMILIES SOMETIMES POOL MONEY TO MEET THE MINIMUM INITIAL INVESTMENT WHICH IS 10000 DONORS CAN CHOOSE FROM THREE INVESTMENT VEHICLES A GROWTH PORTFOLIO AN EQUITYINCOME PORTFOLIO AND A FIXEDINCOME PORTFOLIO THESE PORTFOLIOS INVEST IN OTHER FIDELITY MUTUAL FUNDS INVESTMENT ADVISERS ALSO ADVOCATE OTHER STRATEGIES FOR DELAYED GIFTGIVING SUCH AS USING TRUSTS AND LIFE INSURANCE BUT THESE STRATEGIES MAY NOT BE AS ATTRACTIVE IF YOUR GOAL IS SIMPLY TO GET HIGH RETURNS OVER A LONG PERIOD OF TIME WITH THE LEAST HASSLES JOHN CAMMACK A VICE PRESIDENT WITH T ROWE PRICE ASSOCIATES NOTES THAT YOU COULD TAKE OUT A LIFEINSURANCE POLICY AND NAME YOUR CHILDREN OR A CHARITY AS THE BENEFICIARY HE ADVISES BUYING A LOWLOAD VARIABLE LIFE POLICY WHERE YOU GET A CHOICE OF INVESTMENT OPTIONS THAT TYPICALLY INCLUDES AT LEAST ONE STOCK FUND IF YOUR CHILDREN NEED MONEY YOU CAN BORROW AGAINST THE INSURANCE POLICY MR CAMMACK NOTES IN ADDITION WHEN YOU DIE THE PAYOUT ON THE POLICY WILL BE SHIELDED FROM FEDERAL AND STATE INCOME TAXES THOUGH IT MAY BE SUBJECT TO ESTATE TAXES BUT USING INSURANCE HAS ITS DRAWBACKS FROM AN INVESTMENT STANDPOINT IT'S LIKE BUYING A MUTUAL FUND WITH A VERY HIGH EXPENSE RATIO SAYS ROBERT BINGHAM AN INVESTMENT ADVISER WITH SAN FRANCISCO'S BINGHAM OSBORN & SCARBOROUGH BECAUSE THE AGE OF DEATH IS UNCERTAIN YOU'RE MUCH BETTER OFF WITH A STRAIGHT INVESTMENT BECAUSE YOU CAN CONTROL WHEN THE CHILD GETS THE GIFT TRUST ARRANGEMENTS BY CONTRAST ALLOW YOU TO TIME THE DATE OF YOUR GIFT PRECISELY BUT UNLIKE WITH A RETIREMENT ACCOUNT OR AN INSURANCE PRODUCT YOU WON'T GET TAXDEFERRED GROWTH YOU USE A TRUST WHEN YOU HAVE MORE MONEY AND WHERE THE MAIN CONCERN IS THAT THE MONEY WILL BE MISMANAGED BY THE CHILD MR BINGHAM SAYS I WOULDN'T THINK ABOUT A TRUST UNLESS THE AMOUNT WAS AT LEAST 75000 FOR CASHSTRAPPED INVESTORS TWENTIETH CENTURY GIFTRUST INVESTORS MIGHT SEEM LIKE A GOOD ALTERNATIVE INVESTORS CAN'T BUY THIS UNUSUAL KANSAS CITY MO MUTUAL FUND FOR THEMSELVES INSTEAD THE FUND CAN ONLY BE GIVEN AS A GIFT TO SOMEBODY ELSE EACH ACCOUNT IS SET UP AS A SEPARATE TRUST AS THE GRANTOR YOU GET TO DECIDE WHEN THE BENEFICIARY WILL RECEIVE ACCESS TO THE TRUST YOU COULD FOR INSTANCE TIME THE GIFT TO COINCIDE WITH A CHILD'S LIKELY DATE OF RETIREMENT THE MINIMUM INITIAL INVESTMENT TO SET UP AN ACCOUNT IS JUST 250 AND ALL INVESTMENTS MUST BE MADE FOR AT LEAST 10 YEARS OR UNTIL THE CHILD REACHES THE AGE OF MAJORITY WHICHEVER IS LONGER BUT WHILE GIFTRUST MIGHT BE AN EXCELLENT VEHICLE FOR FUNDING A CHILD'S COLLEGE EDUCATION IT COULD CREATE A TAX NIGHTMARE IF THE TRUST CONTINUES TO OPERATE AFTER THE BENEFICIARY REACHES AGE 21 THAT'S BECAUSE MONEY IS DEDUCTED EVERY YEAR FROM EACH ACCOUNT TO PAY THE INCOME AND CAPITALGAINS TAXES THAT ARE DUE ONCE THE TRUST WRAPS UP THE BENEFICIARY MAY HAVE TO PAY ADDITIONAL TAXES ON ANY INCOME AND SHORTTERM CAPITAL GAINS THAT WERE EARNED BY THE TRUST THESE TAXES APPLY TO THOSE YEARS WHEN THE BENEFICIARY IS 21 OR OVER AND WHEN HE OR SHE PAID INCOME TAXES AT A HIGHER MARGINAL RATE THAN THE TRUST JOHN HARTENBACH A TAX EXPERT WHO DOES CONSULTING FOR TWENTIETH CENTURY INVESTORS ADVISES PEOPLE TO THINK CAREFULLY BEFORE GIVING GIFTS THAT MATURE AFTER THE BENEFICIARY TURNS 21 I WOULD BET THAT 95 OF THE ACCOUNTS ARE SET UP FOR THE MINIMUM PERIOD WHICH IS 10 YEARS OR UNTIL THE AGE OF MAJORITY WHICHEVER IS LONGER MR HARTENBACH SAYS IF THE TRUST MATURES AFTER THE BENEFICIARY TURNS 21 THE TAX ACCOUNTING COULD BE VERY ONEROUS 9404220115 940422 THE BUSINESS OF LAW LAWYERS & CLIENTS BY AMY STEVENS HUGHES HUBBARD & REED WAS POISED TO DOLE OUT ROUGHLY 25 MILLION TO SETTLE A SECURITIESFRAUD CASE AGAINST THE FIRM THEN THE US SUPREME COURT SPOKE ON TUESDAY MORNING THE HIGH COURT HANDED THE BIG NEW YORK LAW FIRM AND OTHERS WHAT MAY TURN OUT TO BE A MULTIMILLIONDOLLAR GIFT THE COURT INVALIDATED ALL FEDERAL LAWSUITS THAT ACCUSE PROFESSIONALS OF AIDING AND ABETTING SECURITIES FRAUD THAT WAS THE TYPE OF CASE THAT SHAREHOLDERS IN THE DEFUNCT ZZZZ BEST CO HAD BROUGHT AGAINST HUGHES HUBBARD & REED AND OTHER ADVISERS TO THE COMPANY NOW SAYS CHARLES SCHERER THE LAW FIRM'S MANAGING PARTNER WE ARE OF COURSE REASSESSING THE SITUATION IN LIGHT OF THE SUPREME COURT DECISION WE BELIEVE THE RISK OF LITIGATION OF THIS KIND IS WHAT WAS DRIVING FIRMS LIKE OURS TO SETTLE CASES LIKE THIS IRRESPECTIVE OF THE MERITS HOWEVER LAWYERS BEING LAWYERS THERE MAY STILL BE SOMETHING FOR THE TWO SIDES OF THE ZZZZ BEST CASE TO ARGUE ABOUT SUCH AS WHETHER HUGHES HUBBARD HAD ALREADY REACHED A BINDING AGREEMENT TO SETTLE THE MATTER BEFORE THE COURT MADE THAT SEEM LIKE A VERY BAD IDEA THE TWO SIDES HAVEN'T TALKED TO EACH OTHER ABOUT THAT YET ACCORDING TO PEOPLE FAMILIAR WITH THE CASE KEY SETTLEMENT PAPERS HAVE ALREADY BEEN SIGNED BUT OTHERS HAVEN'T BEEN FOR HIS PART MARC SELTZER A LOS ANGELES LAWYER FOR THE PLAINTIFFS IN THE CASE INSISTS THIS DECISION SHOULD HAVE NO IMPACT ON THE SETTLEMENT WHAT'S CERTAIN IS THAT IF THE DEAL HAD ALREADY BEEN COMPLETED AND FILED WITH A COURT LIKE DOZENS OF SIMILAR SETTLEMENTS INVOLVING OTHER LAW FIRMS IN THE PAST SEVERAL YEARS IT COULDN'T HAVE BEEN UNDONE AND IF ANY SUCH PACT ISN'T YET FINAL THERE'S NO REASON TO PROCEED WITH IT NOW HUGHES HUBBARD IS ONE OF A HANDFUL OF LAW FIRMS INCLUDING PHOENIX'S STREICH LANG AND PHILADELPHIA'S MORGAN LEWIS & BOCKIUS CURRENTLY FACING LAWSUITS ACCUSING THEM OF INDIRECT PARTICIPATION IN SECURITIES FRAUD ANOTHER LAW FIRM MAYER BROWN & PLATT MAY NOW BE OFF THE HOOK IN A CASE BROUGHT BY SHAREHOLDERS OF BONNEVILLE PACIFIC CORP A SALT LAKE CITY POWER COMPANY IN CHAPTER 11 PROCEEDINGS PLAINTIFFS WERE SEEKING TO ADD THE FIRM AS A DEFENDANT BUT NOW THEIR LAWYER CONCEDES THAT AIDINGANDABETTING CLAIMS WILL SOON BE DROPPED AGAINST THE CHICAGO FIRM IT DOESN'T SEEM LIKE IT'S RIGHT BUT IT IS THE LAW RIGHT NOW SAYS SALT LAKE CITY ATTORNEY THOMAS KARRENBERG ADDING THAT MAYER BROWN MAY STILL BE SUED ON OTHER THEORIES THE FIRM DECLINED TO COMMENT ON THE SUIT SEVERAL MAJOR ACCOUNTING FIRMS REALESTATE APPRAISERS AND BANKS HAVE ALSO BEEN NAMED IN VARIOUS AIDINGANDABETTING CASES SOME OF THE SUITS SUCH AS THE ONE AGAINST MORGAN LEWIS WERE FILED IN STATE COURT THE SUPREME COURT'S INTERPRETATION OF THE FEDERAL SECURITIES AND EXCHANGE ACT OF 1934 DOESN'T DIRECTLY APPLY TO THEM BUT IT IS LIKELY TO BE INFLUENTIAL BECAUSE MOST STATE SECURITIES STATUTES WERE PATTERNED AFTER THE FEDERAL MODEL THE COURT'S DECISION WHICH TOSSED OUT A CASE AGAINST A DENVER BANK WAS CERTAINLY GOOD NEWS FOR ALL PROFESSIONAL FIRMS BUT SECURITIESLAW EXPERTS SAY LAW FIRMS MAY BE THE BIGGEST BENEFICIARIES BECAUSE THEIR INVOLVEMENT IN THE SECURITIES INDUSTRY IS USUALLY BEHIND THE SCENES UNLIKE UNDERWRITERS OR ACCOUNTANTS ATTORNEYS TYPICALLY DON'T ISSUE STATEMENTS TO THE INVESTING PUBLIC THUS THEY AREN'T AS VULNERABLE TO CLAIMS THAT THEY DIRECTLY COMMITTED SECURITIES FRAUD ALLEGATIONS THAT ARE STILL ALLOWED UNDER THE COURT'S RULING THE HUGHES HUBBARD CASE WAS BROUGHT BY INVESTORS WHO SAY THEY LOST MORE THAN 100 MILLION AS A RESULT OF THE 1987 COLLAPSE OF ZZZZ BEST THE SHAM CARPETCLEANING COMPANY WHOSE FOUNDER BARRY MINKOW WAS SENTENCED TO 25 YEARS IN PRISON FOR MONEY LAUNDERING AND SECURITIES CRIMES THE LAWSUIT FILED IN LOS ANGELES FEDERAL COURT CLAIMS THAT THE COMPANY'S GENERAL COUNSEL A HUGHES HUBBARD PARTNER ASSISTED ZZZZ BEST IN IMPORTANT LEGAL MATTERS INCLUDING THE PREPARATION OF SECURITIES AND EXCHANGE COMMISSION FILINGS THE SUIT ALSO ALLEGES THAT HUGHES HUBBARD CONSENTED TO THE USE OF ITS NAME IN COMPANY PROSPECTUSES OTHER DEFENDANTS INCLUDE THE COMPANY'S UNDERWRITERS AND ACCOUNTANTS IN ITS DEFENSE THE LAW FIRM HAS MAINTAINED THAT IT WAS A VICTIM OF DECEPTION BY ITS CLIENT THE FIRM HAS SAID THAT ANY SETTLEMENT PAYMENTS WOULD BE COVERED BY ITS MALPRACTICE INSURER AND THAT IT WOULDN'T ADMIT LIABILITY MR SELTZER SAYS THE CASE IS PROCEEDING AGAINST THE OTHER DEFENDANTS THE AIDINGANDABETTING THEORY UNDERGIRDED THE SHAREHOLDER LAWSUITS THAT LED IN THE PAST FEW YEARS TO SOME OF THE HUGE SETTLEMENTS BY SUCH MAJOR LAW FIRMS AS CLEVELAND'S JONES DAY REAVIS & POGUE NEW YORK'S KAYE SCHOLER FIERMAN HAYS & HANDLER AND CHICAGO'S SIDLEY & AUSTIN AMONG OTHERS FOR THEIR ALLEGED PARTICIPATION IN THE 1989 FAILURE OF CHARLES KEATING'S LINCOLN SAVINGS & LOAN ASSOCIATION THESE FIRMS WHICH DIDN'T ADMIT WRONGDOING ARE NO DOUBT KICKING THEMSELVES NOW I WISH THE RULING HAD COME TWO YEARS EARLIER SAYS ROBERT LONG THE LOS ANGELES LAWYER WHO REPRESENTED JONES DAY WHICH PAID 24 MILLION TO PLAINTIFFS IN THE LINCOLN CLASS ACTION IT MIGHT VERY WELL HAVE CHANGED THINGS HE SAYS MY GUESS IS THERE PROBABLY WOULD HAVE BEEN A SETTLEMENT BUT IT WOULD HAVE BEEN A MUCH DIFFERENT NUMBER OTHER THEORIES OF LIABILITY INCLUDING CLAIMS UNDER THE CIVIL RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS LAW HAD BEEN BROUGHT IN THE CASE BUT THOSE WERE GOING TO BE DIFFICULT CLAIMS TO PROVE I DON'T THINK THEY COULD HAVE DONE IT MR LONG SAYS JONES DAY ALSO PAID 51 MILLION TO SETTLE CLAIMS BY THE RESOLUTION TRUST CORP WHICH HAD SEIZED LINCOLN THE COURT'S DECISION DOESN'T APPLY TO CASES BROUGHT BY FEDERAL AGENCIES WHICH HAVE SEPARATE STATUTORY AUTHORITY TO FILE SUIT ON BEHALF OF FAILED FINANCIAL INSTITUTIONS 9404220114 940422 SEQUENT COMPUTER NET RISES BEAVERTON ORE SEQUENT COMPUTER SYSTEMS INC SAID NET INCOME ROSE 38 TO 47 MILLION ON A 21 GAIN IN SALES OF ITS NETWORKED COMPUTING SYSTEMS THE FIRSTQUARTER RESULTS EQUAL TO 15 CENTS A SHARE COMPARE WITH NET OF 34 MILLION OR 12 CENTS A SHARE IN THE YEAREARLIER PERIOD THE COMPANY SAID ITS GROSS MARGINS INCREASED TO 48 FROM 458 IN THE PREVIOUS QUARTER BECAUSE OF RISING DEMAND FOR ITS CUSTOMIZED LARGESCALE SYSTEMS SALES FOR THE QUARTER WERE 939 MILLION UP FROM 776 MILLION 9404220113 940422 LEISURE & ARTS ON DISK DYNAMIC DUETS TRIOS AND MAYFIELD TRIBUTE BY JIM FUSILLI RHYTHM COUNTRY AND BLUES MCA WHICH BRINGS TOGETHER 22 COUNTRY AND R&B ACTS IN DUET FORMATS WORKS QUITE WELL THANKS TO THE ESPRIT DE CORPS THAT ENLIVENS THE 11 TRACKS THE VOCALISTS SEEM TO WANT TO DO WELL TO SERVE THE SONGS AND TO SUPPORT EACH OTHER AND IN TURN THE SINGERS ARE WELL SERVED BY PRODUCER DON WAS AND THE EXPERT MUSICIANSHIP OF SESSION PROS IN LOS ANGELES NEW ORLEANS AND NASHVILLE WHO MANAGE TO FIND A WAY TO CONVEY THE SOUND AND SPIRIT OF THE TWO GENRES AT THE SAME TIME WHAT ALSO HELPS IS HOW WELLMATCHED THE PERFORMERS ARE NOT ONLY IN TERMS OF VOCAL RANGE BUT IN THEIR APPROACH TO A SONG ON THE OPENING NUMBER AIN'T NOTHING LIKE THE REAL THING VINCE GILL AND GLADYS KNIGHT GIVE THE KIND OF STRAIGHTFORWARD YET EMOTIONAL READING THAT CHARACTERIZES THEIR INDIVIDUAL WORK EASILY TOSSING THE MELODY BACKANDFORTH EACH GIVING THE OTHER AMPLE ROOM TO BE HEARD SAM MOORE OF SAM & DAVE FAME AND THE LATE CONWAY TWITTY TOY AROUND WITH THE FADE ON A SMOKY RAINY NIGHT IN GEORGIA THE POINTER SISTERS AND CLINT BLACK OFFER A GRITTY CHAIN OF FOOLS AND THE STAPLE SINGERS ADD A GOSPEL TOUCH TO THE WEIGHT WITH MARTY STUART ON I FALL TO PIECES TRISHA YEARWOOD IS UP TO AARON NEVILLE'S PERFORMANCE AND NATALIE COLE AND REBA MCENTIRE DO A FIRSTRATE JOB ON SINCE I FELL FOR YOU AND THEN THERE'S A ROLLICKING YET LAIDBACK RENDITION OF SOUTHERN NIGHTS FEATURING ALLEN TOUSSAINT ON PIANO AND LEAD VOCAL AND CHET ATKINS ON GUITAR ANOTHER STARLADEN RELEASE IS THE LESS SUCCESSFUL A TRIBUTE TO CURTIS MAYFIELD WARNER BROS PRIOR TO HIS 1990 ACCIDENT THAT CAUSED SEVERE PARALYSIS MAYFIELD WROTE AND RECORDED LIVELY OFTEN JOYFUL MUSIC ON HIS OWN AND AS A MEMBER OF THE IMPRESSIONS BUT DESPITE THE PRESENCE OF 17 OF MAYFIELD'S BESTKNOWN SONGS THERE'S LITTLE LIFE AND JOY ON THIS NEW COMPACT DISK PHIL COLLINS SLEEPWALKS HIS WAY THROUGH I'VE BEEN TRYING ELTON JOHN DRAGS DOWN AMEN BRUCE SPRINGSTEEN OFFERS A SLUGGISH FROGTHROATED GYPSY WOMAN AND ON YOU MUST BELIEVE ERIC CLAPTON CAN'T QUITE DUPLICATE MAYFIELD'S FALSETTO THERE ARE A FEW MOMENTS WORTHY OF MAYFIELD'S WRITING INCLUDING KNIGHT'S CHOICE OF COLORS THE ISLEY BROTHERS' I'M SO PROUD AND LENNY KRAVITZ'S BILLY JACK FOR A BETTER REPRESENTATION OF THE SPIRIT OF MAYFIELD'S MUSIC BY A VARIED CAST CONSIDER THE 1993 RELEASE PEOPLE GET READY A TRIBUTE TO CURTIS MAYFIELD SHANACHIE FEATURING JERRY BUTLER DON COVAY KIM WILSON HUEY LEWIS & THE NEWS ITS A CAPPELLA VERSION OF MAYFIELD'S IT'S ALRIGHT FROM THIS DISK WAS A MODEST HIT AND MICHAEL HILL AND VERNON REID WHOSE WE PEOPLE WHO ARE DARKER THAN BLUE IS A POWERHOUSE FOR MAYFIELD'S ORIGINAL RENDITIONS OF HIS SONGS TRY CURTIS MAYFIELD & THE IMPRESSIONS THE ANTHOLOGY 19611977 MCA A 40SONG PACKAGE ISSUED IN 1992 ROB WASSERMAN'S TRIOS MCA/GRP EXTENDS A PROJECT HE BEGAN IN 1983 WITH A RECORDING FOR THE SOLO ACOUSTIC BASS AND CONTINUED FIVE YEARS LATER WHEN HE ISSUED DUETS MCA WHICH FEATURED HIS BASS BEHIND THE LIKES OF AARON NEVILLE DAN HICKS LOU REED RICKI LEE JONES AND STEPHANE GRAPPELLI ON THE NEW DISK WASSERMAN GOES A STEP FURTHER BY PLACING HIMSELF IN A DIVERSE TRIO SETTING HE'S WITH BRIAN WILSON AND DAUGHTER CARNIE ON THE UTTERLY CHARMING FANTASY IS REALITY/ BELLS OF MADNESS AND WITH WILLIE DIXON AND R&B DRUM ICON AL DUNCAN ON DIXON'S JAUNTY DUSTIN' OFF THE BASS WASSERMAN IS AS THIS PROJECT SHOWS AN ADAPTABLE BASSIST WHO'S EQUALLY ADEPT BEHIND CELLISTS MATT HAIMOVITZ AND JOAN JEANRENAUD ON TWO HYPNOTIC NUMBERS AND TRADING FOURS WITH BRANFORD MARSALIS AND BRUCE HORNSBY ON THE LATTER'S WHITEWHEELED LIMOUSINE ON CHRIS WHITLEY'S HOME IS WHERE YOU GET ACROSS WASSERMAN PLAYS OFF A RELENTLESS PATTERN SUPPLIED BY PRIMUS BASSIST LES CLAYPOOL WHILE ON ELVIS COSTELLO'S PLAYFUL PUT YOUR BIG TOE IN THE MILK OF HUMAN KINDNESS HIS RHYTHMIC PRECISION ALLOWS GUITARIST MARC RIBOT TO SOLO A LA DJANGO IN A CAREER THAT SPANNED MORE THAN 60 YEARS DANNY BARKER THE LEGENDARY NEW ORLEANS JAZZ GUITARIST AND BANJOIST WHO DIED ON MARCH 13 AT AGE 85 WORKED ALONGSIDE A VIRTUAL WHO'S WHO OF JAZZ ARTISTS BEGINNING WITH JELLY ROLL MORTON LOUIS ARMSTRONG AND CAB CALLOWAY AND EXTENDING TO CHARLIE PARKER BILLIE HOLIDAY DIZZY GILLESPIE AND BEYOND THROUGHOUT THE YEARS HIS WORK APPEARED ON ANY NUMBER OF ALBUMS TWO RECORDINGS DEMONSTRATE HIS VERSATILITY ON THE 1989 RELEASE THE MASTERY OF THE BLUES COLUMBIA BY WYNTON MARSALIS BARKER USES THE BANJO TO ENLIVEN THE RHYTHM SECTION ON OH BUT ON THE THIRD DAY WHILE ON THE FUNERAL MARCH THE DEATH OF JAZZ HE TAKES A BLUES SOLO THAT IS BY TURNS STUTTERING AND FLUID ON THE BRASSY LA VERN BAKER SINGS BASSIE SMITH ATLANTIC ORIGINALLY RECORDED IN 1958 AND ISSUED ON CD IN 1988 BARKER HIS STRUMMING ON GUITAR AS SUBTLE AND RELENTLESS AS A BRUSH ON A SNARE DRUM BINDS THE RHYTHM SECTION PERMITTING PIANIST NAT PIERCE TO DASH OFF NOTES UNDER THE BLUESY HORN SECTION 9404220112 940422 ENTERPRISE ALLEGED EMBEZZLING BOOKKEEPER TURNS UP AT THE OFFICE BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL HUNTINGTON BEACH CALIF POLICE HERE SAY THEY ARRESTED A MAN WHO THEY ALLEGE IS A MYSTERIOUS EMBEZZLING BOOKKEEPER WHO HAS VICTIMIZED A SERIES OF SMALL BUSINESSES AND ELUDED AUTHORITIES FOR YEARS A SURPRISED SMALLBUSINESS OWNER IDENTIFIED THE MAN AS HIS OWN EMPLOYEE AFTER READING ABOUT THE BOOKKEEPER'S EXPLOITS IN THE WALL STREET JOURNAL TUESDAY POLICE ADDED AUTHORITIES IDENTIFIED THE ALLEGED EMBEZZLER AS DONALD LEE PETERSON 56 YEARS OLD HE WAS ARRESTED WEDNESDAY WHILE WORKING AS A BOOKKEEPER AT THE BUSINESS UNDER THE ALIAS OF MICHAEL MILLS SAID DETECTIVE JEFF NELSON OF THE HUNTINGTON BEACH POLICE WHO MADE THE ARREST DETECTIVE NELSON AND OTHER LAWENFORCEMENT AUTHORITIES SAY MR PETERSON USING NUMEROUS ALIASES HAS BEEN OPERATING FOR YEARS UP AND DOWN THE WEST COAST THESE OFFICIALS NOW BELIEVE THAT HE WAS INVOLVED IN A FAR LARGER SERIES OF EMBEZZLEMENTS THAN PREVIOUSLY THOUGHT INVOLVING 15 TO 20 BUSINESSES AND ROUGHLY 25 MILLION IN LOSSES OVER THE PAST DECADE OR SO AS REPORTED MR PETERSON'S ALLEGED METHOD OF OPERATION INVOLVES GETTING HIRED AS A BOOKKEEPER AT A FIRM AND THEN STEALING FROM ITS ACCOUNTS BEFORE DISAPPEARING AFTER A FEW MONTHS ON THE JOB MR PETERSON HAS BEEN A TARGET OF LAWENFORCEMENT AGENCIES RANGING FROM LOCAL POLICE DEPARTMENTS TO THE FEDERAL BUREAU OF INVESTIGATION IN A BRIEF PHONE INTERVIEW FROM JAIL YESTERDAY MR PETERSON DECLINED TO COMMENT UNTIL HE HAD A CHANCE TO CONFER WITH AN ATTORNEY ACCORDING TO LAWENFORCEMENT AUTHORITIES MR PETERSON'S TRAIL IN THE CURRENT MATTER APPEARS TO STRETCH BACK SOME 20 YEARS AGO TO THE FEDERAL PRISON AT TERMINAL ISLAND HERE IN THE EARLY 1970S MR PETERSON SPENT ABOUT TWO YEARS THERE IN CONNECTION WITH A SCHEME INVOLVING THE ILLEGAL USE OF POSTAL MONEY ORDERS ACCORDING TO FEDERAL PRISON RECORDS THOSE RECORDS ALSO SHOW THAT A MAN NAMED PATRICK WILLIAM FINNIGAN ALSO WAS INCARCERATED AT TERMINAL ISLAND AT THE TIME MR FINNIGAN NOW 55 YEARS OLD WAS SERVING TIME FOR MAKING FALSE CLAIMS AGAINST THE GOVERNMENT AND HAD PREVIOUSLY BEEN IN PRISON FOR ILLEGAL TRANSPORTATION OF COUNTERFEITING EQUIPMENT POLICE BELIEVE THAT MESSRS PETERSON AND FINNIGAN EVENTUALLY BECAME PARTNERS IN THE SMALLBUSINESS SWINDLES THAT HAVE BEEN UNDER INVESTIGATION BY THE EARLY 1980S THE TWO MEN HAD COME TO THE ATTENTION OF SAN JOSE AUTHORITIES IN CONNECTION WITH SMALLBUSINESS EMBEZZLEMENTS IN NORTHERN CALIFORNIA AND THE PACIFIC NORTHWEST SGT KEN YULES A FRAUD INVESTIGATOR WITH THE SAN JOSE POLICE HAS BEEN INVESTIGATING THE MATTER OFF AND ON FOR 10 YEARS ADDING VICTIMS AS TIME PASSED SGT YULES SAYS HE HAS COME UPON ABOUT A DOZEN THEFTS INVOLVING ABOUT 2 MILLION BASED ON THEIR INVESTIGATIONS POLICE BELIEVE MR PETERSON'S METHOD OF OPERATION INVOLVED ANSWERING NEWSPAPER EMPLOYMENT ADS UNDER AN ALIAS AND PROVIDING A FALSE RESUME A FAKE REFERENCE AND EVEN FALSE IDENTIFICATION PAPERS SUCH AS DRIVER'S LICENSES POLICE SAID THEY THINK MR FINNIGAN POSING AS MR PETERSON'S PRIOR EMPLOYER MIGHT HAVE SUPPLIED THE FALSE REFERENCES BANK RECORDS INDICATE THAT SOME OF THE STOLEN MONEY WENT TO BUY GOLD BULLION AUTHORITIES SAID SGT YULES SAID HE MANAGED TO GET ENOUGH EVIDENCE AGAINST MR PETERSON AND MR FINNIGAN TO OBTAIN ARREST WARRANTS AGAINST THE PAIR AS WELL AS A THIRD MAN WHO WAS EVENTUALLY CAUGHT AND PLED GUILTY TO GRAND THEFT HOWEVER SGT YULES COULDN'T LOCATE MR PETERSON AND MR FINNIGAN HE SAYS THAT OVER THE YEARS OF CHASING THEM HE HAS COME TO CONSIDER THE PAIR THE BEST SWINDLERS I'VE EVER SEEN POLICE SAID THAT BY THE LATE 1980S THE PAIR APPARENTLY HAD MOVED TO SOUTHERN CALIFORNIA LOCAL POLICE IN COMMUNITIES BEGAN GETTING REPORTS FROM SMALL BUSINESSES OF THEFTS INVOLVING THE SAME METHODS AS THOSE IN THE NORTH SOUTHERN CALIFORNIA AUTHORITIES SAID THEY WEREN'T AWARE OF THE EARLIER CASES UNTIL ONE VICTIM IN SAN JOSE READ THE WALL STREET JOURNAL ARTICLE HUNTINGTON BEACH'S DETECTIVE NELSON SAID THAT VICTIM CALLED DETECTIVE NELSON WHO WAS QUOTED IN THE JOURNAL AND PASSED ON SGT YULES'S NAME UNTIL THAT CONTACT DETECTIVE NELSON AND OTHER SOUTHERN CALIFORNIA LAWENFORCEMENT OFFICIALS HAD KNOWN MR PETERSON ONLY BY ONE OF HIS MANY ALIASES SUCH AS DAVID SHELTON OR MICHAEL HAMMOND DETECTIVE NELSON SAID THE SMALLBUSINESS OWNER WHO WAS EMPLOYING MR PETERSON READ THE ARTICLE TUESDAY NIGHT HE MADE A MIDNIGHT CALL TO THE HUNTINGTON BEACH POLICE EXPLAINING THAT HE HAD HIRED THE SUSPECT BOOKKEEPER IN FEBRUARY AT THE OWNER'S REQUEST DETECTIVE NELSON DECLINED TO GIVE OUT THE FIRM'S NAME BUT HE SAID THE OWNER HAS BEGUN CHECKING THE COMPANY ACCOUNTS TO SEE IF ANY MONEY IS MISSING DETECTIVE NELSON WENT TO THE BUSINESS THE NEXT MORNING SAW THAT MR PETERSON MATCHED THE DESCRIPTION GIVEN BY THE VICTIMS AND ARRESTED HIM ON THE SPOT FINGERPRINTS CONFIRMED MR PETERSON'S IDENTITY DETECTIVE NELSON SAID FOUR ALLEGED SOUTHERN CALIFORNIA VICTIMS HAVE ALSO IDENTIFIED MR PETERSON FROM PHOTOS AS THE MAN WHO WORKED FOR THEM AS A BOOKKEEPER MR PETERSON HASN'T BEEN FORMALLY CHARGED AND IS BEING HELD ON SUSPICION OF HAVING COMMITTED THE THEFTS MR FINNIGAN THE SUSPECTED ACCOMPLICE REMAINS AT LARGE LAWENFORCEMENT AUTHORITIES SAY THEY ARE NOW DISCUSSING HOW THEY WANT TO PROCEED AGAINST MR PETERSON BUT AFTER 10 YEARS OF LOOKING SAYS SAN JOSE'S SGT YULES GETTING MR PETERSON INTO CUSTODY IS QUITE A RELIEF 9404220111 940422 CREDIT MARKETS TREASURY PRICES JUMP AS INVESTORS SENSE BONDS MAY HAVE SEEN LOWEST LEVELS FOR TIME BEING BY THOMAS D LAURICELLA AND DAVID FERCH SPECIAL TO THE WALL STREET JOURNAL NEW YORK INVESTORS DECIDED IT WAS SAFE TO GO BACK INTO THE WATER YESTERDAY AS BONDS STAGED A SIGNIFICANT RALLY TRADERS SAID INVESTORS WEREN'T RESPONDING TO ANY PARTICULAR NEWS EVENT BUT TO A SENSE THAT BOND PRICES MAY HAVE SEEN THEIR LOWEST LEVELS FOR THE TIME BEING INVESTORS ARE FREQUENTLY UNWILLING TO BUY IN A FALLING MARKET DESPITE THE VALUE THAT LOWER PRICES MIGHT PRESENT SAID VAN SILER A MANAGING PARTNER AT RJ WALLS & CO THAT'S BECAUSE INVESTORS FEAR THAT MOMENTUM IS PUSHING THE MARKET DOWNWARD HE EXPLAINED BUT AFTER WATCHING PRICES RISE FOR TWO DAYS SOME INVESTORS REGAINED THEIR CONFIDENCE YESTERDAY AND BEGAN TO BELIEVE THAT THE MOMENTUM HAD SHIFTED HE SAID MEANWHILE SOME EXPERTS ARE RINGING ALARM BELLS ABOUT THE WEAK STATE OF VENEZUELA'S ECONOMY AND THE RESULTING EFFECT ON THAT NATION'S GOVERNMENT BONDS WHICH HAVE BEEN POPULAR INVESTMENTS AMONG AMERICAN INVESTORS IN THE PAST TWO YEARS THE BENCHMARK 30YEAR TREASURY BOND JUMPED MORE THAN 1 1/8 POINTS OR MORE THAN 1125 FOR A BOND WITH A 1000 FACE VALUE TO 88 8/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE FELL TO 721 FROM 731 ON WEDNESDAY SUPPORTING THE MARKET IN RECENT DAYS HAVE BEEN WAVES OF SHORTCOVERING BY DEALERS AND SPECULATIVE ACCOUNTS IN CLOSING OUT A SHORT POSITION A TRADER BUYS BACK SECURITIES THAT HAD BEEN SOLD AS A BET THAT PRICES WOULD FALL THE TECHNICAL TRADE PROVIDED MOST OF THE IMPETUS FOR THE MOVE UP MR SILER SAID SIGNIFICANTLY THE SHORTCOVERING CONTINUED DESPITE SOME UNFRIENDLY ECONOMIC NEWS A STRONG HOUSINGSTARTS REPORT WAS LARGELY SHRUGGED OFF AND THE MARKET WAS ABLE TO WEATHER WHAT WOULD ORDINARILY HAVE BEEN AN UNNERVING SIGN OF INFLATION AS WELL THE PRICESPAID INDEX IN THE PHILADELPHIA FEDERAL RESERVE'S BUSINESS OUTLOOK SURVEY JUMPED TO 331 IN APRIL FROM 16 IN MARCH EARLIER THIS YEAR GAINS IN THE PHILADELPHIA FED'S PRICESPAID INDEX HELPED SPARK HEAVY SELLING OF TREASURY SECURITIES HELPING TO EASE THE PAIN OF THE RISE IN THE INFLATION INDEX WAS THE LOCAL BUSINESS ACTIVITY OVERALL INDEX WHICH FELL TO 116 IN APRIL FROM 241 IN MARCH WE'VE HAD A FAIR AMOUNT OF BEARISH NEWS AND IN THE FACE OF THAT THE MARKET JUST KEPT ON GRINDING UP SAID TIM HEATON A TRADER AT NIKKO SECURITIES CO BOND INVESTORS FEAR INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN BOND INVESTORS OFTEN REACT NEGATIVELY TO GOOD ECONOMIC NEWS BECAUSE THEY FEAR THAT STRONG ECONOMIC GROWTH WILL LEAD TO HIGHER INFLATION INVESTORS WERE ESPECIALLY ENCOURAGED BY THE MARKET'S ABILITY TO SHAKE OFF THE BAD NEWS IN THE END THEY STEPPED UP TO THE PLATE AND STARTED BUYING TREASURY SECURITIES I SAW REAL RETAIL INVESTORS FOR THE FIRST TIME IN A COUPLE OF MONTHS SERIOUS ACCOUNTS DECENT SIZED SAID MR HEATON OF NIKKO I DON'T THINK ANYTHING FUNDAMENTAL CHANGED PEOPLE WERE JUST WAITING ON THE SIDELINES AND WAITING FOR EVIDENCE OF A BOTTOM HE SAID IN ADDITION TO THE DEALER SHORTCOVERING AND INVESTOR BUYING TRADERS REPORTED WIDESPREAD TALK YESTERDAY THAT THE FEDERAL RESERVE WAS CONDUCTING UNANNOUNCED PURCHASES OF FIVEYEAR AND 10YEAR NOTES POSSIBLY ON BEHALF OF A FOREIGNCENTRAL BANK THE RECENT RALLY HAS BEEN ACCOMPANIED BY SOME REVISIONIST THINKING ON THE STRENGTH OF THE ECONOMY FORECASTS FOR FIRSTQUARTER GROSSDOMESTICPRODUCT GROWTH HAVE BEEN TRIMMED AND IN THE WAKE OF THE FEDERAL RESERVE'S LATEST TIGHTENING OF MONETARY POLICY INFLATION FEARS HAVE SUBSIDED A BIT BUT ALL OBSERVERS WEREN'T CONVINCED THAT THE BOND MARKET WILL CONTINUE ITS WINNING WAYS IT FEELS BETTER SAID JOSEPH LIRO CHIEF ECONOMIST AT SG WARBURG & CO BUT WE'VE BEEN DOWN THIS ROAD BEFORE ONLY TO GET LOST RIGHT ABOUT HERE HE SAID UNTIL WE BREAK OUT OF THIS RECENT RANGE THIS IS STILL A CORRECTION OF THE OVERSOLD POSITION WE WERE IN ON MONDAY SAID MR LIRO MR LIRO ADDED THAT HE BELIEVED THERE WAS A CHANCE THE MARKET COULD BREAK OUT OF THE RANGE AND THAT THE YIELD ON THE LONG BOND COULD DROP BELOW 7 THIS SUMMER WE'VE BEEN RUNNING OUT OF SELLERS AND NOW WHAT WE NEED TO GET US THROUGH THE TOP IS SOME BUYING WE STARTED TO SEE SOME OF THAT YESTERDAY BUT WE NEED A LITTLE BIT MORE HE EXPLAINED ANALYSTS ARE WORRIED THAT A BANKING CRISIS COULD MAKE IT DIFFICULT FOR VENEZUELA TO SERVICE ITS FOREIGN DEBT A POPULAR PURCHASE FOR AMERICAN INVESTORS OVER THE PAST TWO YEARS ACCORDING TO EMERGING MARKETS REPORT A NEWS SERVICE OF DOW JONES & CO THE VALUE OF VENEZUELAN DEBT HAS DROPPED NEARLY 27 SINCE THE START OF THE YEAR ACCORDING TO SALOMON BROTHERS THE MOST POPULAR OF VENEZUELA'S DEBT INSTRUMENTS ARE BRADY BONDS VENEZUELA HAS MORE THAN 17 BILLION IN SOCALLED BRADY BONDS OUTSTANDING THEY WERE CREATED WHEN THE COUNTRY RESTRUCTURED ITS PORTFOLIO OF FOREIGN COMMERCIAL LOANS UNDER GUIDELINES SET UP BY FORMER TREASURY SECRETARY NICHOLAS BRADY THE CRISIS ERUPTED JAN 17 WHEN THE VENEZUELAN GOVERNMENT SHUT DOWN BANCO LATINO THE COUNTRY'S LARGEST BANK IN TERMS OF ASSETS BECAUSE CHECKS WEREN'T BEING HONORED BANCO LATINO'S FAILURE SET OFF A DOMINO REACTION AMONG EIGHT OTHER VENEZUELAN BANKS THE VENEZUELAN DEPOSITS GUARANTEE FUND FOGADE HAS ALREADY SPENT MORE THAN 5 BILLION TO BAIL OUT BANCO LATINO AND THE OTHER BANKS THE CRISIS CONTINUED WEAKNESS IN THE VENEZUELAN ECONOMY AND BIG DROPS IN THE COUNTRY'S RESERVES IF THEY CONTINUE COULD MAKE IT DIFFICULT FOR THE NATION TO SERVICE ITS DEBT ACCORDING TO ANALYSTS IF THE COUNTRY'S RESERVES CONTINUE TO DROP AS SHARPLY THE REST OF THIS YEAR AS THEY DID IN THE FIRST QUARTER SAID CHASE MANHATTAN EMERGINGMARKETS ADVISER RIORDEN ROETT ON WEDNESDAY VENEZUELA COULD FACE A BALANCE OF PAYMENTS PROBLEM IN THE THIRD QUARTER JEROME LEVINSON OF THE ECONOMIC POLICY INSTITUTE AGREED WITH MR ROETT'S FORECAST PARTICULARLY IF INFLATION CONTINUES TO RISE IT'S ALREADY RISING MORE THAN 40 A MONTH ALSO MAKING THINGS BAD FOR THE COUNTRY IS THE OUTLOOK FOR OIL PRICES AND A GROWING FISCAL DEFICIT VENEZUELA RELIES ON OIL FOR UP TO 90 OF ITS REVENUE AND OIL PRICES AREN'T EXPECTED TO RISE THIS YEAR A NEW TAX PLAN IS SUPPOSED TO NARROW THE DEFICIT BUT MR ROETT DOESN'T THINK IT WILL BE ENOUGH ANALYSTS FEAR THAT VENEZUELA WILL BE TEMPTED TO DEVALUE ITS CURRENCY TO NARROW THE DEFECIT THIS WOULD ADD MORE FUEL TO THE INFLATION FIRE YESTERDAY A SPOKESMAN FOR THE DEPOSITS GUARANTEE FUND SAID THAT THE CENTRAL BANK WAS PRINTING NEW MONEY TO COVER THE COSTS OF THE BANK BAILOUT THEY ARE MAKING THE MONEY IN CASH IT IS NOT COMING OUT OF THEIR RESERVES SAID FOGADE SPOKESMAN EDGAR SILVA A REPRESENTATIVE FOR THE CENTRAL BANK SAID THE INSTITUTION WOULD NEITHER CONFIRM NOR DENY MR SILVA'S COMMENTS THE REPRESENTATIVE DID CONFIRM HOWEVER THAT THE MONEY FOR THE BAILOUT ISN'T COMING OUT OF THE NATION'S RESERVES MR SILVA WAS EMPHATIC THAT THE BANKING CRISIS WOULDN'T EFFECT VENEZUELA'S SCHEDULE OF BRADYBOND PAYMENTS THE CENTRAL BANK SPOKESPERSON ALSO SAID THE DEBT WOULDN'T BE AFFECTED BY THE BANKING CRISIS THE FINANCE MINISTRY COULDN'T BE REACHED FOR COMMENT YESTERDAY CHASE MANHATTAN CORP ISSUED A STATEMENT OF SUPPORT FOR THE ECONOMIC REFORMS OF VENEZUELA CHASE SAID IT ISSUED THE STATEMENT IN AN EFFORT TO CLARIFY THE CORPORATION'S VIEWS TOWARD ECONOMIC REFORMS UNDER WAY IN THE COUNTRY ALTHOUGH RECENT ECONOMIC DEVELOPMENTS HAVE COMPLICATED VENEZUELA'S OUTLOOK READ ONE PART OF THE STATEMENT WE AT CHASE BELIEVE THAT THE STRONG ECONOMIC MANAGEMENT THE GOVERNMENT IS CURRENTLY DEMONSTRATING WILL RESTORE BALANCE TO ECONOMIC ACTIVITY AND PROVIDE A BASIS FOR THE RESUMPTION OF GROWTH ELECTRICUTILITY BONDS WERE UNDER PRESSURE YESTERDAY IN REACTION TO AN ARTICLE IN THE WALL STREET JOURNAL THAT SAID CALIFORNIA REGULATORS HAVE PROPOSED CHANGES THAT WOULD ALLOW CONSUMERS TO CHOOSE THEIR SOURCE OF POWER ALSO TURKISH MONETARY OFFICIALS TOLD JOURNALISTS YESTERDAY THAT THE COUNTRY WON'T ISSUE ANY PLAIN VANILLA INTERNATIONAL BONDS UNTIL ONE OF ITS AGENCIES LAUNCHES A CONVERTIBLEBOND OFFERING LATER THIS YEAR TURKISH OFFICIALS WERE MEETING WITH JOURNALISTS AND INVESTORS TO DISCUSS THE COUNTRY'S NEW ECONOMIC STABILIZATION AND PRIVATIZATION PROGRAMS TURKISH OFFICIALS SAID THE DEAL WAS CANCELED BECAUSE OF SHARP FALLS IN WORLDBOND MARKETS TURKEY IS ALSO EXPERIENCING A SERIOUS ECONOMIC CRISIS THAT HAS PUSHED DOWN THE VALUE OF ITS CURRENCY SHARPLY BOOSTED LOCAL INTEREST RATES AND MADE THE COUNTRY A LESS ATTRACTIVE PLACE TO IN WHICH TO INVEST THE CONVERTIBLE BOND ISSUE IS EXPECTED FROM POST TELEPHONE & TELEGRAPH THE TURKISH TELECOMMUNICATIONS COMPANY SLATED FOR PRIVATIZATION SAID BULENT OZGUN DIRECTOR GENERAL OF THE UNDERSECRETARIAT FOR THE TREASURY AND FOREIGN TRADE OFFICIALS DIDN'T COMMENT ON THE SIZE OF THE PLANNED POST TELEPHONE TRANSACTION BUT EARLY MARKET RUMORS PUT THE FIGURE AT 2 BILLION TRADING IN THE INVESTMENTGRADE MARKET WAS VERY LIGHT WITH MOST SPREADS REMAINING UNCHANGED PRICES FOLLOWED TREASURYS UP THE JUNKBOND MARKET ALSO HAD A POSITIVE DAY WITH PRICES UP ABOUT 1/4 POINT TO 3/4 POINT IN LIGHT TRADING TRADERS SAID CALIFORNIA RESIDENTS CURRENTLY BUY POWER FROM THEIR LOCAL UTILITIES BUT IF A PROPOSAL FROM THE CALIFORNIA PUBLIC UTILITIES COMMISSION TAKES EFFECT ENERGY USERS WILL BE ABLE TO BUY POWER FROM THE SUPPLIER OF THEIR CHOICE AT LEAST 12 OTHER STATES ARE ALSO CONSIDERING ENERGY DEREGULATION STANDARD & POOR'S PLACED ITS RATINGS OF SOUTHERN CALIFORNIA EDISON CO SAN DIEGO GAS & ELECTRIC CO AND PACIFIC GAS & ELECTRIC CO ON CREDITWATCH WITH NEGATIVE IMPLICATIONS MORTGAGE PASSTHROUGHS PUT IN A STRONGER PERFORMANCE YESTERDAY AS INSTITUTIONAL INVESTORS GAINED ENOUGH CONFIDENCE IN THE MARKET TO BUY YIELDS ON PASSTHROUGH CERTIFICATES NARROWED TO THEIR TREASURY COUNTERPART SMEANING THEIR VALUE INCREASED FOR THE SECONDSTRAIGHT SESSION SOME OF THE MORE POPULAR SECURITIES WERE GINNIE MAE 7S AND FANNIE MAE 75S SAID ONE TRADER BUT THE MARKET FOR CLASSES OF REAL ESTATE MORTGAGE INVESTMENT CONDUITS AND MORTGAGE DERIVATIVES REMAINS WEAK WITH MOST BUYERS SIDELINED AND THE NEW ISSUE MARKET QUIET MEANWHILE THE ASSETBACKED MARKET AWAITS AN UNUSUAL 800 MILLION TRANSACTION BACKED BY LOANS TO CHRYSLER CORP DEALERS THE TWOPART DEAL IS SAID TO INCLUDE AN INTERNAL INTERESTRATE SWAP ARRANGEMENT AND SEVERAL RESERVE FUNDS THAT GUARD AGAINST THE BONDS BEING PAID BACK EARLY ACCORDING TO OFFICIALS WHO SAW THE PRELIMINARY PROSPECTUS YESTERDAY OAKWOOD HOMES CORP IN NORTH CAROLINA OFFERED 1748 MILLION ISSUE IN ASSETBACKED CERTIFICATES BACKED BY MANUFACTURED HOUSING LOANS THE CERTIFICATES WERE SOLD BY A MERRILL LYNCH SPECIAL PURPOSE VEHICLE MEANWHILE GINNIE MAE 8S FOR MAY DELIVERY WERE UP 24/32 AT 100 15/32 FREDDIE MAC GOLD 8S FOR MAY WERE UP 22/32 AT 100 24/32 FANNIE MAE 8S FOR MAY WERE UP 22/32 AT 100 19/32 AND THE TREASURY'S 5 7/8 10YEAR NOTE WAS UP 29/32 AT 92 26/32 THE LATEST BURST OF BUYING HAS GIVEN MUNICIPAL BONDS A BIG LIFT ACTIVELY TRADED ISSUES WERE POSTING GAINS OF 3/4 POINT OR MORE MUNIS HAVE CONTINUED TO CLIMB SWIFTLY DESPITE A SERIES OF FEDERAL RESERVE CREDITTIGHTENING MOVES SINCE FEBRUARY AND EXPECTATIONS FOR FURTHER INTERESTRATE INCREASES MUNIS ARE UNDERGOING ANOTHER SPORADIC REBOUND ALONG WITH THE OTHER US BOND MARKETS THE RISE IS HARDLY SEEN SURPRISING GIVEN THAT MUNIS FELL SO FAR AND SO FAST IN THE LAST FEW MONTHS PRICES ARE RISING PARTICULARLY FAST BECAUSE A SLOWDOWN IN ISSUANCE HAS PARED THE AMOUNT OF SUPPLY IN THE MARKET MUNI SPECIALISTS SAY THIS SESSION CHICAGO'S 806 MILLION 1994 SERIES A REVENUE BONDS FOR THE CITY'S MIDWAY AIRPORT CAME TO THE MARKET THROUGH A SMITH BARNEY SHEARSON GROUP THIS ISSUE IS SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX IN RESPONSE TO STRONG DEMAND THE YIELD FOR BONDS DUE IN 2014 WAS LOWERED TO 64 FROM 65 AND THE YIELD FOR BONDS DUE IN 2024 WAS LOWERED TO 65 FROM 66 FOLLOWING THE REPRICING YIELDS RANGE FROM 5 IN 1998 TO 650 IN 2024 THE INITIAL YIELD SCALE WAS 5 IN 1998 TO 66 IN 2024 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 9404220110 940422 LEISURE & ARTS ON SPORTS THIS YEAR'S RAINDELAY READING LIST BY FREDERICK C KLEIN THE NOTION THAT BASEBALL LOOKS BEST WHEN VIEWED THROUGH THE REARVIEW MIRROR IS NOT LIMITED TO THE ORDINARY FAN THAT THE LITERATI OR AT LEAST THE PEOPLE WHO WRITE BASEBALL BOOKS SHARE IT IS CLEAR FROM A PERUSAL OF THIS SPRING'S STACK JUST ABOUT EVERY NEW BOOK ON THE MARKET HAS REQUIRED ITS AUTHOR TO USE HIS LIBRARY CARD BUT DON'T GET ME WRONG THAT'S AN OBSERVATION NOT A COMPLAINT IF THE NEW YORK METS OR YANKEES HAD WON THE LAST WORLD SERIES WE'D BE ENCOUNTERING TITLES LIKE HUSTLE THE JOHN FRANCO STORY OR BASEBALL HAS BEEN VERY VERY GOOD TO ME BY MELIDO PEREZ WE'RE BETTER OFF THE WAY THINGS ARE THE PICK OF THE LITTER I THINK IS DON'T LOOK BACK SATCHEL PAIGE IN THE SHADOWS OF BASEBALL SIMON & SCHUSTER 368 PAGES 23 BY MARK RIBOWSKY IT'S A BIOGRAPHY OF PAIGE THE MOST FAMOUS PLAYER IN THE OLD NEGRO LEAGUES THE WORK IS USEFUL PARTLY BECAUSE OF THE MYTHOLOGY THAT HAS GROWN UP AROUND THE GANGLY PITCHER'S LONG CAREER THOSE LEGENDS WERE LARGELY SELFMADE NOBODY TALKED A BETTER GAME THAN SATCH AND THE HAZY RECORDS OF THE TEAMS FOR WHICH HE PLAYED HINDERED ATTEMPTS AT VERIFICATION RIBOWSKY ESTABLISHES THAT WHILE PAIGE DID NOT STRIKE OUT EVERY BATTER HE FACED HE WAS A REMARKABLE PERFORMER ONE WHO WOULD HAVE MADE A TOWERING MAJOR LEAGUE RECORD HAD HE NOT BEEN DENIED ENTRANCE ON THE BASIS OF HIS COLOR UNTIL 1948 WHEN HE WAS 42 YEARS OLD IN KEEPING WITH PRESENTDAY SENSIBILITIES RIBOWSKY TAKES PAINS TO PORTRAY PAIGE AS A VICTIM OF BOTH INSTITUTIONAL RACISM AND THE TEAM OWNERS BLACK AS WELL AS WHITE FOR WHOM HE PLAYED IT'S ALSO CLEAR THOUGH THAT HE WAS A CANNY INDIVIDUAL WHO GAVE ALMOST AS GOOD AS HE GOT AND HAD A PRETTY GOOD TIME IN THE PROCESS HIS APHORISMS ALONE DON'T LOOK BACK SOMETHING MIGHT BE GAINING ON YOU WAS HIS BEST WOULD HAVE MADE HIM A NOTEWORTHY CHARACTER IF HE'D NEVER THROWN A STRIKE RIBOWSKY DOESN'T GET AS CLOSE TO PAIGE AS THE READER MIGHT WISH APPARENTLY BECAUSE NOBODY DID BUT HE GOT A BETTER LOOK THAN ANYONE SO FAR THE CURSE OF ROCKY COLAVITO A LOVING LOOK AT A THIRTYYEAR SLUMP SIMON & SCHUSTER 304 PAGES 2250 IS OF COURSE ABOUT THE CLEVELAND INDIANS THAT THE AUTHOR SPORTSWRITER TERRY PLUTO CAN WRITE WITH AFFECTION ABOUT A TEAM HE ONCE COVERED SAYS A LOT ABOUT THE ALLURE OF A TRIBE THAT MANY MIGHT THINK ONLY CUSTER COULD LOVE ONE MIGHT QUIBBLE ABOUT THE BOOK'S TITLE THE MISBEGOTTEN DEAL THAT SENT THE ROCK A CHARISMATIC SLUGGER TO THE DETROIT TIGERS FOR HARVEY KUENN A COMPETENT BUT COLORLESS SINGLES HITTER TOOK PLACE 34 YEARS AGO AND THE INDIANS' LAST PENNANT CAME IN 1954 THERE'S NO ARGUMENT THOUGH THAT THERE'S BEEN A LOT TO LAUGH ABOUT AMID THE RUBBLE OF THE INDIANS' LONG SIEGE OF FAILURE FOR INSTANCE WHERE ELSE BUT AT OLD CLEVELAND STADIUM COULD THE TICKET SCALPERS HAVE SOLD SEATS FOR LESS THAN THEIR FACE VALUE THIS IS A VERY GOOD STORY WELL TOLD WHEN THE GIANTS WERE GIANTS BILL TERRY AND THE GOLDEN AGE OF NEW YORK BASEBALL ALGONQUIN BOOKS OF CHAPEL HILL 331 PAGES 2495 BY PETER WILLIAMS IS A LONG LOVE NOTE TO TERRY THE NEW YORK GIANTS FIRST BASEMAN AND MANAGER OF THE 1930S MEMPHIS BILL WAS DOUR HARD TO APPROACH AND MERCENARY TO THE CORE IN 1983 WHEN HE WAS 84 HE ANSWERED MY REQUEST FOR AN INTERVIEW FOR A STORY ON ACTIVE OCTOGENARIANS WITH A DEMAND THAT HE BE PAID SO HE'S BEEN SLIGHTED BY BASEBALL HISTORIANS BUT HE COULD HIT A LOT AND MANAGE A LITTLE AND WILLIAMS FINDS HIM AND HIS ERA ALTOGETHER ADMIRABLE IN THE POLITICS OF GLORY HOW BASEBALL'S HALL OF FAME REALLY WORKS MACMILLAN 452 PAGES 25 BILL JAMES THE FIGURE FILBERT EXPOUNDS THE LESSTHANSTARTLING THESIS THAT MANY PLAYERS HONORED IN THE GAME'S COOPERSTOWN NY SHRINE SHOULDN'T BE THERE HE SUGGESTS THAT ONE OF THEM IS THE MOST RECENT ELECTEE PHIL RIZZUTO THE FORMER YANKEE SHORTSTOP WHILE JAMES WRITES THAT HE FAVORS A DEMOCRATIC INSTEAD OF A DETERMINISTIC APPROACH TO THE USE OF STATISTICS IN EVALUATING HALL OF FAME CANDIDATES HE ARGUES AT LENGTH THAT THE SPORTSWRITERS AND BASEBALL OLDTIMERS WHO DO THE SELECTING OUGHT TO TRY TO BE MORE RATIONAL ABOUT THE WAY THEY CAST THEIR BALLOTS IN PENNANT RACES BASEBALL AT ITS BEST DOUBLEDAY 421 PAGES 2495 DAVE ANDERSON REVIEWS SOME OF THE MORE THRILLING DUELS AND OPINES THAT WITH THE MAJOR LEAGUES' NEWLY EXPANDED PLAYOFF FORMAT SUCH CONTESTS MAY HAVE BECOME A THING OF THE PAST CRACKING THE SHOW DOUBLEDAY 350 PAGES 23 IS A COMPILATION OF SOME OF THE BASEBALL WRITING THAT THOMAS BOSWELL THE WASHINGTON POST SPORTS COLUMNIST HAS DONE OVER THE PAST FIVE YEARS WOMEN IN BASEBALL THE FORGOTTEN HISTORY PRAEGER 208 PAGES 2250 BY GAI INGHAM BERLAGE GOES BACK TO 1866 TO FIND WOMEN PLAYING BALL THE AUTHOR A PROFESSOR OF SOCIOLOGY CONCLUDES THAT VICTORIAN ATTITUDES AND SEXIST MALES HAVE KEPT THEM FROM SCALING THE GAME'S HEIGHTS DIAMONDS ARE A GIRL'S BEST FRIEND WOMEN WRITERS ON BASEBALL FABER & FABER 295 PAGES 2295 EDITED BY ELINOR NAUEN CONTAINS POEMS AND SHORT PIECES BY MANY WRITERS A COUPLE OF WHOM CONFESS TO HAVING HAD CRUSHES ON CARLTON FISK IN PURE BASEBALL PITCH BY PITCH FOR THE ADVANCED FAN HARPERCOLLINS 259 PAGES 21 BY KEITH HERNANDEZ AND MIKE BRYAN THE FORMER METS FIRST BASEMAN GOES INTO THE GAME'S STRATEGIES AND NUANCES IN EXCRUCIATING DETAIL THIS BOOK'S FOR YOU IF YOU'RE WILLING TO READ EIGHT PAGES ON WHEN IT'S BEST TO HIT AND RUN AND WHEN IT'S NOT WE PLAYED THE GAME 65 PLAYERS REMEMBER BASEBALL'S GREATEST ERA 19471964 HYPERION 641 PAGES 35 EDITED BY DANNY PEARY IS ONE OF THOSE TAPERECORDER BOOKS THAT MOSTLY ADD WEIGHT TO THE SHELVES THE BIOGRAPHICAL ENCYCLOPEDIA OF THE NEGRO BASEBALL LEAGUES CARROLL & GRAF 926 PAGES 2995 BY JAMES A RILEY BRIEFLY DOCUMENTS THE CAREERS OF SOME 4000 PLAYERS FROM THE LATE CIRCUITS IT'S A MUST FOR ANY SERIOUS BASEBALL LIBRARY 9404220109 940422 NET AT AMERICAN EXPRESS SURGED IN FIRST QUARTER BY G BRUCE KNECHT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN EXPRESS CO REPORTED A 45 INCREASE IN FIRSTQUARTER NET INCOME AIDED BY RECORD EARNINGS FROM ITS FLAGSHIP TRAVEL RELATED SERVICES UNIT NET INCOME FOR THE PERIOD WAS 353 MILLION OR 69 CENTS A SHARE UP FROM 243 MILLION OR 48 CENTS A SHARE A YEAR EARLIER A NUMBER OF SPECIAL ITEMS HAD INCREASED THE YEARAGO RESULTS BY 25 MILLION CONSOLIDATED REVENUE NET OF INTEREST EXPENSE ROSE 85 IN THE QUARTER TO 337 BILLION FROM 311 BILLION A YEAR EARLIER IT WAS A BETTERTHANEXPECTED QUARTER PARTICULARLY AT TRS SAID THOMAS P FACCIOLA AN SG WARBURG & CO ANALYST TRAVEL RELATED SERVICES REPORTED 234 MILLION IN NET INCOME UP FROM LAST YEAR'S 209 MILLION NET REVENUE INCREASED FOR THE FIRST TIME SINCE THE THIRD QUARTER OF 1992 THE 6 REVENUE INCREASE CAME DESPITE A CONTINUED DECREASE IN THE DISCOUNT RATE THE AMOUNT THAT MERCHANTS PAY TO AMERICAN EXPRESS THE NUMBER OF CARDS OUTSTANDING AS WELL AS CARDHOLDER SPENDING BOTH INCREASED IN ADDITION THIS WAS THE FIRST QUARTER TO REFLECT THE FULL IMPACT OF A CONTRACT WITH THE GENERAL SERVICE ADMINISTRATION THAT ADDED 900000 GOVERNMENTEMPLOYEE CARD HOLDERS CHARGE VOLUMES WERE SURPRISINGLY STRONG SAID MR FACCIOLA HE SAID THE COMPANY BENEFITED FROM THE STRENGTHENING US ECONOMY AS WELL AS THE CONTINUED RECOVERY IN EUROPE IDS FINANCIAL SERVICES REPORTED RECORD FIRSTQUARTER NET INCOME OF 91 MILLION UP FROM 74 MILLION A YEAR AGO THE COMPANY SAID THE DIVISION'S SALE OF ANNUITIES MUTUAL FUNDS AND INSURANCE PRODUCTS REACHED RECORD LEVELS AMERICAN EXPRESS BANK REPORTED NET INCOME OF 24 MILLION UP FROM 17 MILLION A YEAR AGO THE COMPANY ATTRIBUTED THE GAIN TO INCREASED REVENUE FROM ITS PRIVATE BANKING OPERATION REDUCED CREDIT LOSS PROVISIONS AND LOWER TAXES LEHMAN BROTHERS THE INVESTMENTBANKING BUSINESS BEING SPUN OFF LATER THIS YEAR WAS ACCOUNTED FOR AS A DISCONTINUED OPERATION IT HAD 42 MILLION IN NET INCOME REVERSING A YEAREARLIER LOSS OF 451 MILLION WHICH INCLUDED A 630 MILLION CHARGE FOR THE SALE OF THE SHEARSON BROKERAGE BUSINESS AND A 165 MILLION GAIN FROM THE SALE OF BOSTON CO REVENUE AT LEHMAN INCREASED TO 841 MILLION FROM 829 MILLION A GAIN IN COMMISSIONS AND INVESTMENTBANKING FEES WAS LARGELY RESPONSIBLE FOR THE IMPROVEMENT DESPITE THE MARKET TURMOIL CAUSED BY THE RECENT RISE IN INTEREST RATES TRADING REVENUE DECLINED ONLY SLIGHTLY TO 433 MILLION FROM 434 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AMERICAN EXPRESS STOCK CLOSED AT 2975 DOWN 125 CENTS A SHARE 9404220108 940422 REAL ESTATE BY MICHAEL J YBARRA AFTER A RECORD 1993 THE MORTGAGE MARKET IS IN A TAILSPIN PRICE WARS HAVE BROKEN OUT AMONG LENDERS AND AN INDUSTRY SHAKEOUT IS IN THE OFFING SINCE FALLING TO A 25YEAR LOW LAST YEAR INTEREST RATES ON CONVENTIONAL 30YEAR MORTGAGES HAVE BEEN RAPIDLY CLIMBING RISING ABOVE 8 IN EARLY APRIL FOR THE FIRST TIME IN MORE THAN A YEAR THE JUMP WAS PROMPTED BY THE FED'S UPPING SHORTTERM INTEREST RATES THREE TIMES IN THE LAST TWO MONTHS THAT RILED THE BOND MARKET WHICH INFLUENCES MORTGAGE RATES REFINANCING APPLICATIONS IN THE WEEK ENDED APRIL 15 WERE DOWN 85 FROM THEIR PEAK IN SEPTEMBER WHILE NEWMORTGAGE PURCHASES WERE DOWN 82 LAST YEAR REFINANCING ACTIVITY PUMPED UP THE MORTGAGE INDUSTRY WITH MORE THAN 1 TRILLION IN LOANS A 78 RISE FROM 562 BILLION IN 1991 IT ALSO INCREASED THE RANKS OF BROKERS AND BANKERS BY 45 IN THE PERIOD FIGHTING FOR FEWER CLIENTS MORTGAGE COMPANIES ARE BATTLING EACH OTHER WITH CUTS IN POINTS AND FEES SOME LENDERS HAVE BEEN BRUISED BY A RUSH OF UNEXPECTED CLOSINGS BY PEOPLE WHO HAVE LOCKED IN LOWER RATES FORCING THE LENDERS TO SWALLOW A SMALLER MARGIN BETWEEN THE RATE THEY PAY FOR FUNDS AND THE RATE THEY CHARGE LOCKEDIN BORROWERS FLEET MORTGAGE POSTED FIRSTQUARTER EARNINGS OF 26 CENTS A SHARE COMPARED WITH 54 CENTS A YEAR EARLIER CITING LOSSES DUE TO INTERESTRATE INCREASES ABBEY FINANCIAL CORP OF CAMBRIDGE MASS FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION AFTER STATE REGULATORS SHUT IT DOWN IN EARLY APRIL BECAUSE IT COULDN'T COVER ITS PROMISES OF LOWER RATES PROSPECTIVE BORROWERS WHO PAID FEES TO LOCK IN RATES WERE OUT BOTH THE MONEY AND THE LOWER MORTGAGE RATES NORTH AMERICA MORTGAGE IN SANTA ROSA CALIF RECENTLY FIRED A QUARTER OF ITS TELEMARKETING STAFF WHICH DEALT PRIMARILY WITH REFINANCING TERRY HODEL ITS CHIEF OPERATING OFFICER SAYS REFINANCING ACCOUNTED FOR 78 OF THE COMPANY'S WORK LAST YEAR BUT HAS FALLEN TO 42 OVERALL BUSINESS IS DOWN 10 IT'S A TOUGH TIME HE SAYS THERE'S TOO MANY PEOPLE CHASING THE DEALS THESE ARE THE TIMES THAT TRY MORTGAGE BANKERS' SOULS SAYS ANALYST JONATHAN GRAY OF SANFORD C BERNSTEIN & CO WHO EXPECTS LENDING TO FALL BY A THIRD THIS YEAR CALIFORNIA SIDELINED FOR MUCH OF THE NATIONAL HOUSING RECOVERY IS MAKING A COMEBACK AS AN INDUSTRY TRENDSETTER THIS TIME AS THE RECIPIENT OF A NEW KIND OF FINANCING FOR HOME CONSTRUCTION PENSIONFUND MONEY IT COULD SPREAD TO OTHER PARTS OF THE COUNTRY WHERE BUILDERS HAVE HAD TO TAP INTO MANY SOURCES FOR FUNDING IN 1992 THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM OR CALPERS COMMITTED 375 MILLION IN RESIDENTIAL CONSTRUCTION FUNDS THE FIRST MAJOR FORAY INTO SUCH LENDING BY A PENSION FUND IN THE STATE CALPERS EXPECTS TO COMBINE THESE FUNDS WHICH ARE FOR BUILDING HOMES INTO A 1 BILLION POOL ALSO FUNDED BY BUSINESS PARTNERS LIKE PRUDENTIAL HOME BUILDING INVESTMENT ADVISORS AND HEARTHSTONE ADVISORS CALPERS SAYS ITS RETURNS ON THESE INVESTMENTS ARE AS MUCH AS 80 BETTER THAN ON COMMERCIAL LENDING THIS MONTH CALPERS IS EXPECTED TO APPROVE ANOTHER 300 MILLION IN LENDING FOR LAND ACQUISITION AND DEVELOPMENT WHICH HAS HAD THE HARDEST TIME FINDING FUNDING IT'S A PIONEERING AREA FOR PENSION FUNDS SAYS JAMES Z PUGASH PRESIDENT OF HEARTHSTONE ADVISORS THE GENERAL VIEW IS THAT CALIFORNIA IS ONE OF THE WORST MARKETS IN THE COUNTRY FOR GETTING HOME BUILDING FINANCING THE CALPERS MOVE IS BEING CLOSELY WATCHED BY OTHER PENSION FUNDS BECAUSE THE CALIFORNIA FUND THE LARGEST IN THE COUNTRY IS AN INVESTMENT TRENDSETTER ITS VOTE OF CONFIDENCE IN LAND ACQUISITION AND HOMEBUILDING AREAS THAT HAVE BEEN LARGELY DESERTED BY MANY BANKS AND OTHER TRADITIONAL LENDING SOURCES COULD SPUR OTHERS TO DO THE SAME DEVELOPERS OFTEN COMPLAIN THAT ENVIRONMENTALISTS WANT TO PRESERVE EVERY STALE PUDDLE OF WATER WHILE ENVIRONMENTALISTS DENOUNCE BUILDERS FOR TURNING ECOSYSTEMS INTO GOLF COURSES NOW DEVELOPERS CAN DISPOSE OF ENVIRONMENTAL PROBLEMS BY PAYING COMPANIES OR MITIGATION BANKS TO DO THE WETLANDS RESTORATION SOMEWHERE OTHER THAN THE BUILDING SITE FOR EXAMPLE WHEN THE SST SUBSIDIARY OF SWERDLOW WANTED TO BUILD HOMES ON 62 ACRES IN PEMBROKE PINES FLA ITS PERMIT REQUIRED WETLANDS MITIGATION THE BUILDER PAID UP TO 60000 AN ACRE TO FLORIDA WETLANDS BANK WHICH TOOK ON THE ENVIRONMENTAL OBLIGATION AND AGREED TO RESTORE 350 ACRES OF CITYOWNED WETLANDS AND ADD NATURE WALKS AND PICNIC AREAS THE CONCEPT HAS BEEN USED FOR YEARS BY DEPARTMENTS OF TRANSPORTATION AND OTHER STATE AND GOVERNMENT AGENCIES THAT FUND WETLANDSRESTORATION WORK TO COMPENSATE FOR DEVELOPMENT SUCH AS ROADS ALL SUCH DEALS ARE SUBJECT TO APPROVAL BY THE US ARMY CORPS OF ENGINEERS WHICH REQUIRES SUCH RESTORATION TO BE DONE IN THE AREA OF THE BUILDING PROJECT SO THAT THE LOCAL ECOSYSTEM CONTINUES TO RECEIVE THE BENEFITS OF THE WETLANDS SOME ENVIRONMENTALISTS OBJECT MITIGATION BANKING ENCOURAGES USING WETLAND RESTORATION AS AN EXCUSE FOR WETLANDS DESTRUCTION SAYS ART FEINSTEIN PROGRAM COORDINATOR FOR THE AUDUBON SOCIETY IN SAN FRANCISCO THE AVERAGE HOMEOWNER WHO REFINANCED A MORTGAGE LAST YEAR CUT FOUR YEARS OFF THE LOAN TRIMMED THE INTEREST RATE TO 723 FROM 912 AND WILL SAVE MORE THAN 60000 IN INTEREST OVER THE LOAN'S LIFETIME ACCORDING TO A STUDY BY FANNIE MAE LAST YEAR 77 OF HOMES HAD TWO OR MORE GARAGES UP FROM 55 EIGHT YEARS EARLIER AND 12 HAD THREE OR MORE GARAGES ACCORDING TO THE US CENSUS BUREAU CINCINNATI IS THE MOST LIVABLE CITY ON THE CONTINENT ACCORDING TO THE NEW EDITION OF PLACES RATED ALMANAC YOUR GUIDE TO FINDING THE BEST PLACES TO LIVE IN NORTH AMERICA IT RATES SAN FRANCISCO AS THE MOST EXPENSIVE CITY AND MCALLENEDINBURGMISSION TEXAS AS THE LEAST 9404220107 940422 THE AMERICAS TIME FOR MEXICAN FIRMS TO COME OUT OF THE SHADOWS BY ROGELIO RAMIREZ DE LA O MEXICO CITY THE UPRISING IN CHIAPAS AND THE ASSASSINATION OF LUIS DONALDO COLOSIO DECISIVELY CHANGED THE POLITICAL CLIMATE OF MEXICO THIS SHIFT SHOULD BE TAKEN AS A WARNING TO DECISION MAKERS IN GOVERNMENT AS WELL AS THOSE IN THE PRIVATE SECTOR THAT THE ECONOMIC AND POLITICAL STATUS QUO IS UNACCEPTABLE A GRAVE MISTAKE HOWEVER WOULD BE TO INTERPRET RECENT POLITICAL EVENTS AS A REJECTION BY THE GRASS ROOTS OF STRUCTURAL REFORMS ON THE CONTRARY THE ONLY WAY OUT OF PRESENT PROBLEMS IS TO DEEPEN ECONOMIC AND POLITICAL REFORMS AND WIDEN THEIR SCOPE IN PARTICULAR ATTITUDES AND PRACTICES REGARDING FOREIGN DIRECT AND EQUITY INVESTMENT MUST BE RADICALLY ALTERED ECONOMIC REFORMS AND PRIVATIZATIONS IN PAST YEARS GAVE A SMALL NUMBER OF INDUSTRIAL AND FINANCIAL GROUPS A UNIQUE OPPORTUNITY TO INCREASE THEIR WEALTH MANYFOLD BY A SIMPLE REVALUATION OF THEIR ASSETS TO APPROACH INTERNATIONAL VALUES THEY ALSO GAINED ACCESS TO THE WORLD POOL OF SAVINGS IN THE BOND AND EQUITY MARKETS AND MANY OF THEM WERE SOUGHT BY FOREIGN INVESTORS FOR JOINT VENTURES SUCH POWERFUL ECONOMIC GROUPS ARE KEY TO THE FUTURE ECONOMIC GROWTH OF MEXICO BUT NO MORE THAN ANY LARGE CONGLOMERATE IS KEY TO THE WELLBEING OF ITS COUNTRY OF ORIGIN THEREFORE THEY SHOULD NO LONGER BE PROTECTED FROM INTERNATIONAL COMPETITORS OTHERWISE MEXICO'S OPPORTUNITIES IN THE GLOBAL ECONOMY WILL BE UNNECESSARILY NARROWED EXISTING RESTRICTIONS INCLUDE BANS OR LIMITS ON FOREIGN INVESTMENT IN SPECIFIC SECTORS IE TELECOMMUNICATIONS BANKING AUTO PARTS RADIO AND TV ETC THEY ALSO INCLUDE INSUFFICIENT PROTECTION FOR MINORITY EQUITY INTERESTS THE RESTRICTIONS ARE ROOTED IN THE HABITS OF COMPANIES THAT FOR MANY YEARS HAVE BEEN TIGHTLY CONTROLLED BY A FEW SHAREHOLDERS AND MANAGERS MEXICAN GROUPS OFTEN PREFER FOREIGN INDEBTEDNESS OR LARGE PLACEMENTS OF PREFERRED STOCK IN THE INTERNATIONAL MARKET RATHER THAN SELLING COMMON STOCK WITH VOTING RIGHTS TO FOREIGN INVESTORS IN MANY CASES THEY RESENT A MINORITY INVESTOR WANTING TO KNOW WHAT THEY ARE DOING OR WHY EVEN WHEN THE FOREIGNER CAN IMPROVE THEIR OPERATIONS THESE HABITS AND ATTITUDES ACQUIRED LEGAL BACKING THROUGH INVESTMENT LAWS ENACTED DURING THE LUIS ECHEVERRIA ADMINISTRATION 197076 ACCORDING TO WHICH 51 EQUITY MAKES A PARTNER VIRTUALLY UNACCOUNTABLE TO MINORITY INTERESTS AND BECAUSE OF THE ONLY PARTIAL RESTRUCTURING OF THE OLD RULES IN NINE OUT OF 10 VENTURES MEXICAN INTERESTS HAVE EFFECTIVELY MANAGED TO KEEP FOREIGNERS AT BAY BY PROVIDING THEM WITH LESS THAN 50 OF THE VOTING STOCK ALL THIS HAS RESULTED IN SITUATIONS THAT WERE THEY NOT OF GREAT ECONOMIC IMPORTANCE WOULD BE LAUGHABLE FOR EXAMPLE A LARGE MANUFACTURER RECENTLY FLOATED A SUBSTANTIAL BOND ISSUE NOT TELLING PROSPECTIVE FOREIGN INVESTORS THAT HE WOULD USE RESOURCES FROM THE PLACEMENT TO MAKE ACQUISITIONS OUTSIDE OF MEXICO IN A COUNTRY WITH AN UNATTRACTIVE INVESTMENT OUTLOOK IN ANOTHER INSTANCE A CONGLOMERATE WITH MANY SUBSIDIARIES MANAGED TO DIVERT OPERATING LOSSES TO THE ONE SUBSIDIARY WHERE MINORITY INTERESTS WOULD BE HIT IN ADDITION IT IS NOT UNHEARD OF FOR COMPANIES WITH LARGE OUTSTANDING ISSUES OF ADRS TO REFUSE TO ANSWER TELEPHONE CALLS FROM ANALYSTS AND THE FINANCIAL PRESS THE TRADITION OF PLACING EXCESSIVE WEIGHT ON THE 51 MAJORITY RULE IS NOW COMPOUNDED BY THE ALSO MISTAKEN CONVICTION OF BUSINESS LEADERS THAT MEXICO CAN CONTINUE TO ABSORB LARGE FOREIGN CAPITAL INFLOWS THROUGH ITS PRIVATE INDUSTRIAL GROUPS WITHOUT SHARING CONTROL WITH FOREIGNERS A FOOL'S PARADISE MEXICO NEEDS EQUITY INVESTMENT AND FOREIGN CONTROL IS OFTEN INEVITABLE BECAUSE MEXICAN GROUPS OFTEN LACK THE TECHNOLOGY OR DELIVERY SYSTEMS TO BE COMPETITIVE IN THE POSTNAFTA GLOBAL WORLD FOREIGN TECHNOLOGY AND MANAGEMENT CANNOT BE SEPARATED FROM THEIR EQUITY INVESTMENT NO EQUITY INVESTOR WANTS MERELY TO BE A CHEAP SOURCE OF CAPITAL FOR ITS MEXICAN PARTNER GLOBALORIENTED MEXICAN MANAGERS ARE OFTEN SPREAD TOO THIN AND NEED MORE INPUT FROM SOPHISTICATED PARTNERS MEXICO'S PRIVATE SECTOR HAS BY NOW PRACTICALLY DEPLETED ITS NET FOREIGN ASSETS GOVERNMENT POLICIES MUST FORCE A CHANGE IN THESE PAROCHIAL ATTITUDES OF MANAGEMENT BY FACILITATING A FASTER OPENING TO FOREIGN INVESTORS PARTICULARLY IN THOSE SECTORS THAT ARE STILL PARTLY RESTRICTED THIS SHOULD BE DONE WITHOUT ANY EXPECTATION OF RECIPROCITY FROM MEXICO'S NAFTA PARTNERS SINCE MEXICO NEEDS FOREIGN CAPITAL MUCH MORE THAN ITS TWO PARTNERS DO INVESTMENT BANKERS WHO MANAGE ISSUES COULD ALSO HELP THE SITUATION BY EXPLAINING TO MEXICAN CLIENTS THE RULES OF GLOBAL INVESTMENT AND ENCOURAGING MAJORITY SHAREHOLDERS TO CONSIDER INCREASING THE AMOUNT OF FOREIGNHELD EQUITY WITH VOTING RIGHTS MULTILATERAL INSTITUTIONS ALSO SHOULD INCLUDE SUCH OBJECTIVES WHEN CONSIDERING SUPPORT FOR STRUCTURAL ADJUSTMENT AND DEBT RENEGOTIATION PROGRAMS PROTECTION OF MINORITY INTERESTS ALSO DEMANDS CHANGES IN REGULATIONS THESE SHOULD FOCUS ON ELIMINATING THE POSSIBILITY OF ABUSES BY MAJORITY SHAREHOLDERS AND ENSURE THAT DIRECTORS HAVE NO CONFLICTS OF INTEREST SUCH AS SERVING ON TOO MANY BOARDS LEGISLATION FOR BOTH LISTED AND PRIVATE COMPANIES MUST GIVE AT LEAST A MINIMUM OF PROTECTION TO MINORITY INTERESTS REGARDING INFORMATION ACCESS TO COMPANIES' RECORDS AND THE ABILITY TO DEMAND ACTION FROM MANAGERS QUITE APART FROM TRADITIONAL VOTING RULES NEW REGULATIONS ALSO MUST ELIMINATE THE PRESENT DISCRIMINATION AGAINST SMALL COMPANIES A HIGH CAPITALGAINS TAX FROM WHICH LARGE PUBLICLY LISTED COMPANIES ARE EXEMPTED NOW DISCOURAGES THESE SMALL CONCERNS FROM RECEIVING FOREIGN EQUITY INVESTMENT THE NEED FOR THESE CHANGES IS IN FACT MORE URGENT THAN EVER SINCE THE COST OF BANK CREDIT IN MEXICO IS STILL A PROHIBITIVE 25 TO 35 AND LONGTERM FUNDS ARE SCARCE AND INSUFFICIENT CAPITAL IS THE GREATEST OBSTACLE TO RECAPITALIZING THE FARMING SECTOR WHICH REMAINS A SOURCE OF POLITICAL INSTABILITY IT IS NO EXAGGERATION TO EXPECT THAT WITH A FUNDAMENTAL SHIFT IN PUBLIC AND PRIVATE THINKING ABOUT FOREIGN EQUITY INVESTMENT MEXICO COULD RECEIVE THREE TIMES AS MUCH FOREIGN DIRECT INVESTMENT AS THE RELATIVELY LOW AMOUNT IT RECEIVED LAST YEAR APPROXIMATELY 49 BILLION THE PRIVATE SECTOR WOULD BENEFIT FROM CLOSE EXPOSURE TO THE MANAGEMENT SKILLS AND TECHNOLOGY SYSTEMS OF THEIR GLOBALLY INTEGRATED FOREIGN PARTNERS MEXICAN FIRMS WOULD BECOME MORE TRANSPARENT IN THEIR OPERATIONS MORE COMPETITIVE AND MORE ACCOUNTABLE TO SHAREHOLDERS AND SOCIETY MR RAMIREZ DE LA O IS PRESIDENT OF MEXICO CITYBASED ECANAL WHICH PRODUCES ECONOMIC ANALYSIS FOR PRIVATE COMPANIES 9404220106 940422 AT&T VIDEOPHONE TECHNOLOGY NEW YORK AT&T CORP'S CONSUMER PRODUCTS DIVISION LICENSED ITS SLOWSELLING VIDEOPHONE TECHNOLOGY TO FOUR JAPANESE SUPPLIERS THE FOUR SUPPLIERS THAT AGREED TO DEVELOP PHONES USING AT&T'S GLOBAL VIDEOPHONE STANDARD ARE HITACHI LTD SANYO ELECTRIC CO SHARP CORP AND VICTOR CO OF JAPAN LTD AT&T'S PHONE HAS BEEN KNOCKED BY ANALYSTS FOR THE FUZZINESS OF ITS PICTURE AND SLUGGISH SALES BUT A SPOKESWOMAN INSISTED THAT THE PRODUCT IS MEETING AT&T'S SALES TARGETS SINCE ITS INTRODUCTION IN JANUARY 1992 AT&T HAS SOLD 28000 VIDEOPHONES SHE SAID 9404220105 940422 NORANDA PLANS US FACTORY TORONTO NORANDA INC SAID ITS BOARD APPROVED A PLAN FOR THE COMPANY'S AMERICAN RACING EQUIPMENT INC UNIT TO BUILD A 40 MILLION ALUMINUM WHEEL PLANT IN THE US THE DIVERSIFIED NATURALRESOURCES COMPANY CITED GROWING DEMAND FOR ALUMINUM WHEELS AND SAID THE PLANT WILL PRODUCE ABOUT TWO MILLION WHEELS A YEAR CHRYSLER CORP WILL BE THE MAJOR CUSTOMER FOR THE WHEELS NORANDA SAID A LOCATION FOR THE PLANT HASN'T BEEN CHOSEN 9404220104 940422 LIZ CLAIBORNE ADDS TO BUYBACK NEW YORK LIZ CLAIBORNE INC SAID ITS DIRECTORS AUTHORIZED THE REPURCHASE OF AN ADDITIONAL 50 MILLION OF COMMON STOCK BRINGING ITS STOCKBUYBACK PROGRAM TO 400 MILLION THE BIG APPAREL MAKER SAID THAT BASED ON WEDNESDAY'S PRICE OF 2425 A SHARE OF CLAIBORNE COMMON ON THE NEW YORK STOCK EXCHANGE THE BUYBACK PROGRAM WOULD INVOLVE THE REPURCHASE OF AS MANY AS 21 MILLION OF CLAIBORNE'S 789 MILLION COMMON SHARES OUTSTANDING UNDER THE PROGRAM WHICH BEGAN IN 1989 CLAIBORNE HAS REPURCHASED ON THE OPEN MARKET OR IN PRIVATE TRANSACTIONS ABOUT 116 MILLION SHARES VALUED AT ABOUT 348 MILLION AS IN THE PAST THE REPURCHASED SHARES WILL BE USED FOR EMPLOYEE STOCK OPTION PLANS AND FOR OTHER GENERAL CORPORATE PURPOSES 9404220103 940422 LETTERS TO THE EDITOR DDAY 50 YEARS LATER WE'RE READY TO JUMP YOUR MARCH 31 STORY ABOUT THE DDAY CELEBRATION CAUGHT MY EYE I AM ONE OF THE 33 WORLD WAR II PARATROOPER VETERANS WHO MADE THREE QUALIFYING JUMPS IN FEBRUARY AS A MEMBER OF THE RETURN TO NORMANDY ASSOCIATION WE ARE VERY FIT AND READY TO JUMP AGAIN ON JUNE 6 1994 THE 50TH ANNIVERSARY OF DDAY WE WOULD LIKE TO JUMP INTO NORMANDY WITH ARMY PERMISSION GRANTED DURING THE THREE DAYS IN SAN DIEGO WHEN THE WORLD WAR II PARATROOPERS ASSEMBLED FOR THEIR QUALIFYING JUMPS I WAS AMAZED AT THE PHYSICAL CONDITION OF THESE MEN WHILE THE AVERAGE AGE OF THE GROUP WAS ABOUT 71 YEARS THE BIOLOGICAL AGE WAS 2025 YEARS YOUNGER AND THE MENTAL CAPACITY WAS MOST OUTSTANDING WE WANT TO JUMP AGAIN AND WHO BETTER THAN THE PARATROOPERS THAT LED THE INVASION 13 OF THE 33 MADE THE ORIGINAL JUMP IN 1944 AS AN OPTOMETRIST FOR MORE THAN 40 YEARS I WAS INTERESTED IN THE VISUAL HEALTH OF THE MEN MY UNOFFICIAL SURVEY SHOWED NO MAJOR PROBLEMS THERE WERE NO REPORTS OF GLAUCOMA MACULAR DEGENERATION OR RETINAL DETACHMENT COMMON AMONG SENIOR CITIZENS IN OTHER WORDS WE ARE IN GREAT SHAPE TO QUALIFY FOR THE JUMP IN NORMANDY THE FOLLOWING WAS NECESSARY RENE DUSSAQ OF ENCINO CALIF THE OLDEST MEMBER OF THE GROUP AT AGE 83 SAID IT BEST I HAVE THE PHYSICAL AND MENTAL CAPACITIES WHY SHOULDN'T I JUMP AGAIN 9404220102 940422 LETTERS TO THE EDITOR ALL ENDANGERED SPECIES ARE IMPORTANT TO US IKE SUGG'S APRIL 6 EDITORIALPAGE BROADSIDE AGAINST ENDANGERED SPECIES LEFT OUT IMPORTANT INFORMATION 50 OF THE THREATENED AND ENDANGERED SPECIES IN THIS COUNTRY ARE FOUND ONLY ON PRIVATE LAND WITHOUT AN EFFECTIVE EFFORT ON THOSE LANDS WE WOULD BE WRITING OFF AN EXTRAORDINARILY LARGE NUMBER OF SPECIES THIS NATION MADE A COMMITMENT IN PASSING THIS LANDMARK ACT ALL SPECIES ARE IMPORTANT AND WE SHOULD DO WHATEVER WE CAN TO SAVE EACH ONE AS MR SUGG NOTED THE ENDANGERED SPECIES ACT SAYS THAT HARM TO A LISTED SPECIES IS AN ILLEGAL TAKING IN ITS 21 SWEET HOME DECISION THE DC CIRCUIT COURT RULED THAT THE US FISH AND WILDLIFE SERVICE HAD INTERPRETED HARM TOO BROADLY BUT THE SENATE REPORT ACCOMPANYING THE ACT SAID THAT TAKINGS WERE DEFINED IN THE BROADEST POSSIBLE MANNER TO INCLUDE ANY CONCEIVABLE WAY IN WHICH A PERSON CAN TAKE' OR ATTEMPT TO TAKE' ANY FISH OR WILDLIFE SECOND AS JUDGE ABNER MIKVA POINTED OUT IN HIS DISSENT AFTER THE FISH AND WILDLIFE SERVICE ISSUED A REGULATION DEFINING HARM TO INCLUDE HABITAT MODIFICATION CONGRESS AMENDED THE ENDANGERED SPECIES ACT BUT IT DID NOTHING WHATSOEVER TO CHANGE THE REGULATION THIRD THE COURT IN THIS CASE ACTED AS A LEGISLATURE THE JUDICIARY IS SUPPOSED TO DEFER TO PERMISSIBLE INTERPRETATIONS OF FEDERAL STATUTES THE TWO MAJORITY JUDGES WANTED A DIFFERENT INTERPRETATION AND WENT FOR IT IF THEY WOULD LIKE TO DO THAT JOB THEY SHOULD DROP THEIR ROBES AND DECLARE THEIR CANDIDACIES FOR CONGRESS 9404220100 940406 RULE OF LAW WORRIED ABOUT THAT OWL ON YOUR LAND HERE'S GOOD NEWS BY IKE C SUGG EVER SINCE CONGRESS ENACTED THE ENDANGERED SPECIES ACT IN 1973 LAWS TO PROTECT IMPERILED WILDLIFE HAVE ASKED MORE OF PRIVATE PROPERTY OWNERS THAN LAWS TO PROTECT IMPERILED PEOPLE WHOEVER HEARD OF URBAN HOUSEHOLDERS BEING REQUIRED TO PROVIDE FREE ROOM AND BOARD FOR THE HOMELESS IN THEIR NEIGHBORHOOD YET RURAL DWELLERS ARE OFTEN REQUIRED TO GIVE UP USE OF THEIR OWN LAND TO PROVIDE HABITAT FOR NORTHERN SPOTTED OWLS KANGAROO RATS AND COUNTLESS OTHER ANIMALS PROTECTED UNDER THE ACT THANKS TO A RECENT COURT DECISION THAT MAY SOON CHANGE IN A MAJOR VICTORY FOR PROPERTY RIGHTS THE FIRST CHALLENGE TO THE ACT'S REGULATION OF PRIVATE PROPERTY HAS BEEN SUCCESSFUL IN SWEET HOME CHAPTER OF COMMUNITIES FOR A GREAT OREGON V BRUCE BABBITT SECRETARY OF THE INTERIOR THE DC CIRCUIT COURT RULED ON MARCH 11 THAT CONGRESS DID NOT INTEND TO PROHIBIT OWNERS OF PRIVATE PROPERTY FROM MODIFYING HABITAT ON THEIR LAND WHEN IT PASSED THE ENDANGERED SPECIES ACT ACCORDING TO THE THREEJUDGE PANEL THAT REGULATION WAS NEITHER CLEARLY AUTHORIZED BY CONGRESS NOR A REASONABLE INTERPRETATION' OF THE STATUTE SWEET HOME CHAPTER OF COMMUNITIES FOR A GREAT OREGON IS A NONPROFIT ORGANIZATION FORMED TO HEIGHTEN PUBLIC AWARENESS OF AND PROVIDE SUPPORT TO THOSE WHOSE LIVES ARE BEING DESTROYED BY THE GOVERNMENT'S LISTING OF THE NORTHERN SPOTTED OWL SINCE 1990 THE YEAR THE OWL WAS LISTED AS THREATENED UNDER THE ENDANGERED SPECIES ACT MOST OF THE 352 MILLION ACRES OF HARVESTABLE PUBLIC FOREST LAND IN WASHINGTON OREGON AND NORTHERN CALIFORNIA HAVE BEEN EFFECTIVELY IDLED TO PROVIDE REFUGE FOR THE OWLS IF YOU INCLUDE PENDING REGULATIONS FOR THE MARBLED MURRELET THE BULL TROUT AND RIVER RUNS OF PACIFIC SALMON LESS THAN 8 MILLION ACRES OF PUBLIC FOREST LAND REMAIN FOR TIMBER PRODUCTION NO ONE REALLY KNOWS HOW MANY MILLION ACRES OF PRIVATE LAND ARE LOCKED UP BY THE SPOTTED OWL WHAT WE DO KNOW IS THAT 72 OF THE PRODUCTIVE TIMBERLAND IN THE US IS PRIVATELY OWNED AND 24 MILLION ACRES OF THAT TIMBERLAND ARE WITHIN THE OWLS' THREESTATE RANGE FORESTERS WILL TELL YOU THAT THE GOVERNMENT REGULARLY PROHIBITS LOGGING ON PRIVATE PROPERTY WITHIN SEVERAL THOUSAND ACRES AROUND EACH OWL NEST FOR EXAMPLE AFTER SIMPSON TIMBER A PRIVATE TIMBER COMPANY FOUND AND BANDED 603 SPOTTED OWLS ON ITS COMMERCIAL FORESTS IN NORTHERN CALIFORNIA SIMPSON HAD TO IDLE SOME 50000 ACRES OF ITS OWN LAND THE REGULATORY CONTROVERSY OVER THE ENDANGERED SPECIES ACT STEMS FROM THE ACT'S PROHIBITION ON TAKING A LISTED SPECIES SECTION 9 OF THE ACT DEFINES THE WORD TAKE AS TO HARM HARASS PURSUE HUNT SHOOT WOUND KILL TRAP CAPTURE OR COLLECT OR TO ATTEMPT TO ENGAGE IN ANY SUCH CONDUCT IT IS THE WORD HARM THAT IS AT ISSUE AFTER THE ENDANGERED SPECIES ACT BECAME LAW THE FISH AND WILDLIFE SERVICE ISSUED A REGULATION DEFINING IT TO INCLUDE SIGNIFICANT HABITAT MODIFICATION OR DEGRADATION WHERE IT ACTUALLY KILLS OR INJURES WILDLIFE BY IMPAIRING ESSENTIAL BEHAVIORAL PATTERNS INCLUDING BREEDING FEEDING OR SHELTERING THE DC CIRCUIT'S DECISION LAST MONTH EXPRESSLY INVALIDATES THIS DEFINITION SAYING THAT HARM DOESN'T APPLY TO MODIFICATION OF HABITAT IN OTHER WORDS THIS MAY WELL MEAN THAT A LOGGER MAY NOW BE ABLE TO CUT DOWN TREES ON HIS OWN LAND EVEN IF THAT LAND IS HOME TO SPOTTED OWLS DESTROYING OR INJURING A LISTED ANIMAL IS OF COURSE STILL ILLEGAL THE COURT MADE ITS DECISION LARGELY ON THE BASIS OF THE ENDANGERED SPECIES ACT'S LEGISLATIVE HISTORY THAT RECORD IS REPLETE WITH EVIDENCE THAT IN PASSING THE ACT CONGRESS INTENDED TO PROHIBIT THE DESTRUCTION OR ADVERSE MODIFICATION OF HABITAT ONLY BY THOSE ACTIONS AUTHORIZED FUNDED OR CARRIED OUT BY A FEDERAL AGENCY NOT BY PRIVATE LANDOWNERS SUCH ACTIONS FALL UNDER SECTION 7 WHICH IS DIRECTED AT FEDERAL AGENCIES ACTIONS BY PRIVATE LANDOWNERS FALL UNDER SECTION 9 WHICH LACKS ANY REFERENCE TO HABITAT IF UPHELD THE DC CIRCUIT'S DECISION WILL PRECLUDE SUCH EXTORTIONIST SCHEMES AS THE GOVERNMENT'S ECOSYSTEM MANAGEMENT PLAN FOR THE CALIFORNIA GNATCATCHER'S HABITAT UNDER WHICH 95 OF 450000 ACRES OF PRIVATE LAND ARE LOCKED UP SO TOO WILL THE GOVERNMENT'S DESIGNS FOR THE NORTHERN SPOTTED OWL BE NULLIFIED ON PRIVATE LAND IN JANUARY THE GOVERNMENT RELEASED ITS PLANS FOR PROTECTING OWLS ON PRIVATE PROPERTY IN THE PACIFIC NORTHWEST IN WASHINGTON STATE THE GOVERNMENT IS CLAIMING THAT 40 OR 5700 ACRES OF AN OWL'S MEDIAN HOME RANGE OF 14000 ACRES MUST BE KEPT AS SUITABLE HABITAT WITHIN SPECIAL MANAGEMENT AREAS SUCH A RULE WOULD SHUT DOWN LOGGING ON 15 MILLION ACRES IN AND IMMEDIATELY AROUND DOUGLAS COUNTY ALONE WHERE 40 OF THE TIMBER IS PRIVATELY OWNED AND 50 OF THAT IS OWNED BY PEOPLE WITH 300 ACRES OR LESS THE SWEET HOME DECISION WOULD PUT A STOP TO SUCH TYRANNY IN THE LIKELY EVENT THAT THE DC CIRCUIT'S DECISION IS UPHELD THE GOVERNMENT IS ALMOST CERTAIN TO APPEAL CONGRESS WILL HAVE TO SPECIFICALLY AUTHORIZE THE FISH AND WILDLIFE SERVICE TO REGULATE LAND USE ON PRIVATE PROPERTY UNDER THE ENDANGERED SPECIES ACT SECRETARY BABBITT WILL NEED EXPLICIT CONGRESSIONAL AUTHORITY TO IMPLEMENT HIS ECOSYSTEM MANAGEMENT PLAN ENVIRONMENTAL GROUPS SEE THIS AS A THREAT IN A MARCH 16 LETTER TO US SENATORS THE NATIONAL WILDLIFE FEDERATION CLAIMS THAT PRIVATE PROPERTY OWNERS HAVE NOT SUFFERED TAKINGS OF THEIR PROPERTY UNDER THE ESA THE NATIONAL WILDLIFE FEDERATION PERHAPS THE NATION'S LARGEST ENVIRONMENTAL GROUP ASSERTS THAT EVIDENCE TO THE CONTRARY IS LARGELY BASED UPON MYTH AND UNSUPPORTED ALLEGATIONS REALLY THE NATIONAL WILDLIFE FEDERATION SHOULD TRY TELLING THAT TO ANDERSON & MIDDLETON LOGGING CO LATE LAST YEAR THE FEDERAL GOVERNMENT FILED AN ENFORCEMENT ACTION TO ENJOIN ANDERSON & MIDDLETON FROM HARVESTING TIMBER ON 72 ACRES OF PRIVATE LAND ON WASHINGTON'S OLYMPIC PENINSULA THE REASON FOR THIS ACTION WAS A PAIR OF SPOTTED OWLS NESTING NOT ON ANDERSON & MIDDLETON'S LAND BUT ON GOVERNMENT LAND A FULL 16 MILES AWAY FROM THE COMPANY'S 72ACRE PLOT EVEN IF SWEET HOME IS OVERTURNED SUCH REGULATORY OVERREACH COULD NOT POSSIBLY SATISFY THE ENDANGERED SPECIES ACT'S PROHIBITION OF ACTIONS THAT ACTUALLY KILL OR INJURE WILDLIFE POLITICIANS SHOULD UNDERSTAND THAT IF THEY WANT TO USE PRIVATE PROPERTY AS PUBLIC WILDLIFE REFUGES THEN THEY SHOULD ABIDE BY THE CONSTITUTION'S FIFTH AMENDMENT AND COMPENSATE THE OWNERS FOR SUCH PUBLIC USES THAT IS THE UPSHOT OF THE SWEET HOME DECISION FOR THE PROPERTY RIGHTS MOVEMENT THE TASTE OF VICTORY HAS NEVER BEEN SWEETER MR SUGG IS A FELLOW IN WILDLIFE AND LAND USE POLICY AT THE COMPETITIVE ENTERPRISE INSTITUTE IN WASHINGTON DC SEE RELATED LETTER LETTERS TO THE EDITOR ALL ENDANGERED SPECIES ARE IMPORTANT TO US WSJ APRIL 22 1994 9404060098 YY94 MM04 9404220099 940422 XILINX FIRSTPERIOD NET ROSE 52 SAN JOSE CALIF XILINX INC SAID ITS FISCAL FOURTHQUARTER NET INCOME ROSE 52 TO 12 MILLION AS SALES FOR ITS PROGRAMMABLE SEMICONDUCTORS JUMPED 50 THE EARNINGS FOR THE PERIOD ENDED APRIL 2 WERE EQUAL TO 50 CENTS A SHARE COMPARED WITH 8 MILLION OR 34 CENTS A SHARE A YEAR EARLIER SALES INCREASED 50 TO 754 MILLION FROM 502 MILLION FOR FISCAL 1994 THE COMPANY EARNED 413 MILLION OR 171 A SHARE UP 52 FROM 272 MILLION OR 115 A SHARE IN 1993 SALES WERE UP 44 TO 2564 MILLION AGAINST 178 MILLION 9404220098 940422 FINANCIAL CONCERNS PLAN MERGER INDIANA PA FIRST COMMONWEALTH FINANCIAL CORP AND RELIABLE FINANCIAL CORP SAID THEY SIGNED A DEFINITIVE AGREEMENT TO MERGE RELIABLE FINANCIAL INTO FIRST COMMONWEALTH FINANCIAL UNDER THE AGREEMENT FIRST COMMONWEALTH WILL ISSUE 16 SHARES OF COMMON STOCK FOR EACH RELIABLE FINANCIAL SHARE AT THE CURRENT MARKET PRICE FOR THE BANK'S SHARES THE DEAL HAS A VALUE OF ABOUT 40 MILLION THE TRANSACTION IS SUBJECT TO APPROVAL BY RELIABLE FINANCIAL SHAREHOLDERS AND REGULATORY AUTHORITIES THE MERGER IS EXPECTED TO BE COMPLETED DURING THE THIRD QUARTER RELIABLE IS A SAVINGSANDLOAN CONCERN BASED IN BRIDGEVILLE PA 9404220097 940422 MARKETING & MEDIA DIGITAL MUSIC TRANSMISSIONS COULD FACE ADDITIONAL ROYALTIES UNDER PROPOSAL BY JEFFREY A TRACHTENBERG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LEGISLATION PENDING BEFORE CONGRESS COULD AFFECT THE BURGEONING NEW MARKET FOR DIGITAL MUSIC TRANSMISSIONS OVER CABLETELEVISION WIRES THE LEGISLATION IS SPARKING HEATED DEBATE IN THE MUSIC INDUSTRY BECAUSE IT WOULD REQUIRE THAT RECORDING ARTISTS AND RECORD COMPANIES RECEIVE ROYALTIES FOR SUCH TRANSMISSIONS US COPYRIGHT LAW PROVIDES ROYALTY PAYMENTS ONLY TO COMPOSERS AND MUSIC PUBLISHERS FOR THE SALE OF ALBUMS WHILE RECORD COMPANIES SUPPORT THE LEGISLATION MUSIC PUBLISHERS SOME OF WHICH ARE UNITS OF RECORD COMPANIES OPPOSE IT BECAUSE THEY FEAR ANY NEW RECORDCOMPANY ROYALTIES WILL COME OUT OF THEIR POCKETS MARTIN BANDIER CHAIRMAN OF EMI MUSIC PUBLISHING A UNIT OF LONDONBASED THORN EMI PLC SAID YES THE RECORD COMPANIES AND ARTISTS SHOULD RECEIVE A PERFORMANCE FEE FOR THEIR MUSIC BUT THAT SHOULDN'T BE DONE TO THE DETRIMENT OF EVERYONE ELSE AT LEAST TWO COMPANIES ALREADY PROVIDE DIGITAL MUSIC TRANSMISSIONS VIA CABLETV SYSTEMS AND THE BUSINESS IS EXPANDING RAPIDLY RADIO AND TV STATIONS NOW TRANSMIT ANALOG SIGNALS THAT MOVE AS IMPRECISE WAVES THROUGH THE AIR BUT BROADCASTERS ARE EXPECTED TO ALSO EVENTUALLY TRANSMIT SIGNALS DIGITALLY THE PROPOSED LEGISLATION WOULDN'T AFFECT ANALOG SIGNALS WHAT WE'RE SEEING IS THAT THESE DIGITAL RADIO COMPANIES BUY A SINGLE COMPACT DISK PLAY IT AND THEN CHARGE THEIR CUSTOMERS MONTHLY FEES TO LISTEN TO IT SAID JAY BERMAN CHAIRMAN OF THE RECORDING INDUSTRY ASSOCIATION OF AMERICA A TRADE GROUP THIS ISN'T RIGHT RECORD COMPANIES ALSO FEAR THAT DIGITAL TRANSMISSION OF HIGHQUALITY RECORDINGS WILL ENCOURAGE MORE HOME TAPING EVENTUALLY CONSUMERS WILL BE ABLE TO ACQUIRE AND COPY DIGITALLY TRANSMITTED MUSIC IN THEIR HOMES BYPASSING THE STORES ENTIRELY SAID TIM BOGGS CHIEF LOBBYIST FOR TIME WARNER INC THE CLINTON ADMINISTRATION IS LINING UP SUPPORT FOR THE PROPOSED LEGISLATION IN A LETTER TO REP WILLIAM J HUGHES CHAIRMAN OF THE SUBCOMMITTEE ON INTELLECTUAL PROPERTY AND JUDICIAL ADMINISTRATION GINGER LEW GENERAL COUNSEL OF THE US DEPARTMENT OF COMMERCE SAID THE ADMINISTRATION FULLY BACKS PERFORMANCE RIGHTS FOR DIGITAL TRANSMISSIONS OF SOUND RECORDINGS YESTERDAY MR HUGHES D NJ SAID HE BACKS THE LEGISLATION ADDING THAT IT HAS A HIGH PRIORITY INTERNATIONAL CABLECASTING TECHNOLOGIES INC A LOS ANGELESBASED SERVICE THAT DIGITALLY TRANSMITS MUSIC TO 325000 SUBSCRIBERS WOULD HAVE TO PAY ADDITIONAL ROYALTIES UNDER THE PROPOSED LEGISLATION THE COMPANY'S CHAIRMAN JERRY RUBINSTEIN SAID HE SUPPORTS PERFORMANCE RIGHTS AS LONG AS ALL FORMS OF DIGITALLY TRANSMITTED MUSIC ARE COVERED INCLUDING OVERTHEAIR RADIO THE NATIONAL ASSOCIATION OF BROADCASTERS OPPOSES PERFORMANCE RIGHTS FOR DIGITIALLY TRANSMITTED MUSIC BECAUSE NAB MEMBERS ALREADY PAY 300 MILLION A YEAR IN COPYRIGHT FEES A SPOKESWOMAN ADDED THAT THE TRADE GROUP'S MEMBERS PROVIDE FREE PROMOTION TO RECORD COMPANIES AND PERFORMERS BY PLAYING THEIR MUSIC WHAT MOST CONCERNS THE NAB IS THE POSSIBILITY THAT THE LEGISLATION MAY AFFECT ADVERTISERSUPPORTED RADIO OUR MEMBERS WON'T BE PROVIDING UNINTERRUPTED ALBUM PLAY THAT WILL ALLOW LISTENERS AT HOME TO TAPE ENTIRE ALBUMS SAID JIM MAY AN NAB EXECUTIVE VICE PRESIDENT IF THIS LEGISLATION FORCES RADIO STATIONS AND ALL OF THEM WILL TRANSMIT DIGITALLY EVENTUALLY TO PAY PERFORMER FEES WE WILL FIGHT IT 9404220096 940422 BUSINESS BRIEF THOMAS INDUSTRIES INC GAIN IS EXPECTED FROM SALE OF AT LEAST ONE BUSINESS THOMAS INDUSTRIES INC SAID AS A RESULT OF THE SALE OF ONE OF ITS NONCORE BUSINESSES AND THE POSSIBLE SALE OF ANOTHER ALSO NONCORE IT EXPECTS TO RECORD AN AFTERTAX GAIN OF 3 MILLION OR 30 CENTS A SHARE IN THE SECOND QUARTER THE COMPANY SOLD ITS PORTLAND WILLAMETTE DIVISION WHICH MAKES FIREPLACE SCREENS AND RELATED ACCESSORIES TO PRIVATELY HELD BYERS INDUSTRIES INC PORTLAND ORE TERMS WEREN'T DISCLOSED IN ADDITION THE COMPANY SAID IT IS CURRENTLY IN TALKS TO SELL ITS BUILDERS BRASS DIVISION WHICH MAKES ARCHITECTURAL HARDWARE AND DOOR CONTROLS A COMPANY SPOKESMAN DECLINED TO COMMENT FURTHER THOMAS INDUSTRIES WHICH MAKES AND MARKETS COMMERCIAL INDUSTRIAL AND RESIDENTIAL LIGHTING PRODUCTS AS WELL AS COMPRESSOR AND VACUUM PUMPS SAID THESE DIVESTITURES ARE IN LINE WITH ITS STRATEGY OF FOCUSING ON ITS TWO CORE BUSINESSES 9404220095 940422 THE RIVER THAT RUNS THROUGH BOISE RUNS CLEAR ONCE AGAIN CLEANUP BUOYS ENVIRONMENT STIRS THE LOCAL ECONOMY AND LURES BIRDS BATHERS BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL BOISE IDAHO THE BOISE IS A RIVER TRANSFORMED MALLARDS PADDLE ITS CLEAR WATER MAGPIES AND BALD EAGLES ONCE A RARE SIGHT HERE NEST IN THE COTTONWOODS ALONG ITS SHORES DRAWN BY THE RIVER'S GROWING STOCK OF TROUT AND THE POPULACE FLOCKS TO NAVIGATE IT BY INNER TUBE AND CANOE NEW LOWRISE OFFICE BUILDINGS AND LUXURY HOMES CROWD THE RIVER'S SHORES IT WASN'T ALWAYS SO WHILE DOWNTOWN BOISE HUDDLED IN THE FOOTHILLS OF THE ROCKIES THE RIVER BELOW WAS ABANDONED TO RATS SCUTTLING ALONG ITS BANKS AND TO AUTO BODIES AND SEWAGE CLOGGING ITS FLOW THE REFUSE FROM RIVERSIDE SLAUGHTERHOUSES SOMETIMES MADE IT RUN RED WITH BLOOD BUT SPURRED BY CITIZEN REVULSION AND BY FEDERAL REGULATIONS AND TENS OF MILLIONS OF DOLLARS OF GOVERNMENT MONEY THE CITY ENDED THE DUMPING POLLUTERS LEFT AND THE WATER WAS CLEANED UP THE PAYOFF ISN'T ONLY A CLEANER ENVIRONMENT BUT INCREASED ECONOMIC ACTIVITY AS WELL BOISE'S EXPERIENCE REFLECTS THE HISTORIC AND GENERALLY UNREMARKED CLEANUP OF URBAN RIVERS THAT HAS OCCURRED SINCE THE FIRST EARTH DAY 24 YEARS AGO TODAY HELPED RAISE THE NATION'S ENVIRONMENTAL CONSCIOUSNESS MANY OF THE FILTHIEST RIVERS FROM BOSTON'S CHARLES TO THE AMERICAN IN SACRAMENTO CALIF HAVE BEEN SUBSTANTIALLY CLEANSED ONCESHUNNED RIVERBANKS SUCH AS THOSE ALONG THE WILLAMETTE IN PORTLAND ORE AND THE MERRIMACK IN NASHUA NH HAVE TURNED INTO PICTURESQUE GATHERING PLACES THAT BOOST CIVIC PRIDE AND REALESTATE VALUES ENVIRONMENTALISTS HAVE BEEN SLOW TO PRAISE THIS PROGRESS FOR FEAR OF SLACKENING CLEANUP EFFORTS AND INDUSTRY HOPING TO STAVE OFF FURTHER ENVIRONMENTAL REGULATION HAS BEEN HESITANT TO ACKNOWLEDGE THAT THIS CLEANUP HAS BEEN A MAJOR SPUR TO ECONOMIC DEVELOPMENT THERE STILL ARE RIVERS TO BE CLEANED BUT AS CONGRESS PREPARES TO REWRITE THE CLEAN WATER ACT OF 1972 THE MAIN CHALLENGE WILL BE FINDING WAYS TO CONTROL RURAL WATER POLLUTION THAT IS PRIMARILY THE RESULT OF PESTICIDES AND FERTILIZER WASHING OFF FARMLAND ACCORDING TO AN ENVIRONMENTAL PROTECTION AGENCY REPORT ISSUED THIS WEEK AGRICULTURE ACCOUNTED FOR 72 OF ALL POLLUTION IN IMPAIRED RIVERS A WORKING ASSUMPTION OF BOTH LAWMAKERS AND THE WHITE HOUSE IS THAT THE CRISIS IN AMERICA'S URBAN RIVERS HAS NOW LARGELY ABATED ONE OF THOSE SUCCESS STORIES FLOWS THROUGH IDAHO'S CAPITAL WHICH GOT ITS NAME FROM THE RIVER THAT FIRST ATTRACTED SETTLERS TO THE AREA FRENCH FUR TRAPPERS MARVELING AT THE RICH FLOOD PLAIN BETWEEN MOUNTAIN AND DESERT NAMED IT LA RIVIERE BOISEE OR THE WOODED RIVER BUT BOISE DEVELOPED MAINLY AS A SUPPLY CENTER TO MINERS IN NEARBY IDAHO CITY AFTER GOLD WAS FOUND THERE IN 1863 BY THE EARLY 20TH CENTURY THE BOISE RIVER WAS A FLOATING DUMP ON ITS BANKS STOOD SAWMILLS AND LATER SLAUGHTERHOUSES A WOMAN WHO GREW UP IN TURNOFTHECENTURY BOISE ONCE RECALLED THE RIVER SMELLS OF HER CHILDHOOD DEAD FISH ROTTEN BARK AND REFUSE IT REALLY WAS THE CLASSIC EXAMPLE OF AN URBAN RIVER USED PRIMARILY FOR WASTE REMOVAL SAYS KEVIN COYLE PRESIDENT OF THE AMERICAN RIVERS ENVIRONMENTAL GROUP BY 1962 IDAHO'S HEALTH DEPARTMENT HAD COLLECTED ENOUGH DATA ABOUT SLUDGE AND FLOATING GREASE TO SOUND AN ALARM STATE OFFICIALS CONCLUDED THAT BACTERIA FROM RAW SEWAGE WOULD PRESENT A DEFINITE HEALTH HAZARD TO ANYONE WHO COMES IN CONTACT WITH THIS WATER NORWAY RATS FEEDING ON ANIMAL PARTS FROM A MEATPACKING PLANT THE REPORT SAID WERE POTENTIAL DISEASE CARRIERS GROWING CITIZEN DISGUST PROMPTED CITY OFFICIALS TO SEEK WAYS TO CLEAN THE RIVER MOMENTUM ACCELERATED WHEN HAROLD ATKINSON A CALIFORNIA PLANNING CONSULTANT HIRED BY THE CITY NOTICED THAT BOISE OWNED SEVERAL PARCELS OF RIVERFRONT LAND WHY NOT CREATE CONTIGUOUS PARKLAND THE CITY COUNCIL ADOPTED HIS SUGGESTION IN 1966 THE GREENBELT AS IT IS NOW FORMALLY KNOWN SPARKED A LOCAL EFFORT TO CLEAN UP THE RIVER BOY SCOUTS PUT CHICKEN WIRE AROUND FRESHLY PLANTED COTTONWOOD TREES TO KEEP BEAVERS FROM CHEWING THEM TO BITS MOONLIGHTING FEDERAL OFFICIALS HELPED IDENTIFY THE VARIETIES OF WILDLIFE AND FOLKS BUILT SHELTERS IN TREES FOR DUCKS TO NEST IN THE OTHER BIG IMPETUS CAME FROM WASHINGTON CONGRESS INCREASED FUNDING FOR CLEANUP OF RIVERS AND OTHER WATERWAYS THROUGH A SERIES OF LAWS THAT CULMINATED IN THE CLEAN WATER ACT THAT LAW REQUIRED ALL PIPELINE DISCHARGERS SUCH AS SEWAGE SYSTEMS AND INDUSTRIAL PLANTS TO MEET CLEANUP STANDARDS DEFINED BY THE BEST AVAILABLE TECHNOLOGY ALTHOUGH THE 1972 LAW HAS CLEARLY FAILED TO MEET SOME OF ITS LOFTIER GOALS AMONG THEM AN END TO ALL DISCHARGE OF WATER POLLUTANTS BY 1985 ITS IMPACT ON ENDOFTHEPIPE DUMPING HAS BEEN STRIKING INDUSTRIAL POLLUTION REMAINS A REALITY BUT IS STEADILY DECLINING AS INDUSTRIES IMPROVE PRETREATMENT AND SHIFT TO PROCESSES THAT CREATE LESS POLLUTION OLDER URBAN SEWERS HOOKED UP TO STORMWATER DRAINS STILL BACK UP INTO RIVERS AND STREAMS DURING HEAVY RAINS BUT DELIBERATE DUMPING OF RAW SEWAGE IS NO LONGER A DAILY FACT OF URBAN LIFE LESS THAN HALF OF US CITIZENS SENT THEIR SEWAGE TO A TREATMENT PLANT IN 1970 TODAY AN OVERWHELMING MAJORITY DO IN BOISE THE CLEANWATER LAW ALLOWED THE CITY TO CRACK DOWN ON HOUSEHOLDS THAT WERE STILL PIPING SEWAGE DIRECTLY INTO THE RIVER AND TO BUILD A SECOND AND THIRD SEWAGETREATMENT PLANT ACCORDING TO LYNN MCKEE EPA ASSISTANT REGIONAL ADMINISTRATOR FOR IDAHO THE AGENCY HAS PROVIDED 30 MILLION TO BOISE FOR SEWAGE UPGRADE DURING THE PAST TWO DECADES MUCH OF THAT HAS BEEN MATCHED BY ADDITIONAL STATE AND LOCAL FUNDING THE CLEANWATER LAW ALSO CHASED THE SLAUGHTERHOUSES OUT OF THE CITY SAYS MICHAEL MCINTYRE A STATE WATERQUALITY COMPLIANCE OFFICER OTHERS IMPROVED THEIR WASTETREATMENT PROCESSES AND AFTER THE EPA REQUIRED A NEARBY DAM TO IMPROVE WATER FLOW CONTROL TO DILUTE POLLUTION RESIDENTS ENDED THEIR PRACTICE OF DAMMING THE RIVER WITH RUSTING CARS WHILE THE CITY SET ABOUT FISHING THEM OUT AS THE WATER GREW CLEANER SOMETHING ELSE OCCURRED THE BOISE RIVER BECAME AN ATTRACTION TRASH FISH LIKE SUCKERS AND CARP GAVE WAY TO TROUT AND WHITEFISH LURING ANGLERS AND EAGLES THE RIVER BECAME SO SWIMMABLE THAT THOUSANDS OF PEOPLE NOW TRAVERSE IT BY INNER TUBE OR CANOE DURING SUMMER THE CLEANUP EVEN SPAWNED AN ANNUAL BOISE RIVER FESTIVAL THAT LAST YEAR DREW AN ESTIMATED HALFMILLION PEOPLE ANOTHER BENEFIT OF THE CLEANUP DEVELOPMENT OF BOISE'S DOWNTOWN BEGAN A MARCH TOWARD THE RIVER BOISEBASED COMPANIES SUCH AS ALBERTSON'S INC SUPERMARKET CHAIN AND OREIDA FOODS CO HJ HEINZ CO'S FROZENFOOD UNIT SHIFTED THEIR HEADQUARTERS TO THE RIVERFRONT MORRISON KNUDSEN CORP THE CONSTRUCTION COMPANY FUNDED A STATERUN NATURE CENTER ALONG THE CITY'S STRETCH OF RIVERSIDE PARKLAND AND OREIDA DONATED LAND FOR A RIVERFRONT AMPHITHEATER WHERE SHAKESPEARE IS PERFORMED IN SUMMER MONTHS PERHAPS THE GRANDEST SYMBOL OF THE RIVER'S HEIGHTENED STATUS IS THE ARID CLUB A PRIVATE ORGANIZATION THAT INCLUDES 350 MEMBERS OF BOISE'S BUSINESS ELITE IN THE MID1980S THE CLUB MOVED TO A NEW BUILDING ON THE EDGE OF THE GREENBELT SO DINERS MIGHT GAZE OUT AT THE ROLLING WATER ANOTHER STRETCH OF RIVERFRONT EAST OF DOWNTOWN IS NOW AMONG BOISE'S MOST EXCLUSIVE ENCLAVES WITH SYLVAN SUBDIVISIONS NAMED SPRING MEADOW AND RIVER RUN HOBOES PITCHED SHANTIES HERE DURING THE DEPRESSION TODAY ITS INHABITANTS INCLUDE CORPORATE LEADERS AND CITY OFFICIALS INDEED THE AREA IS IN SUCH DEMAND THAT DEVELOPER PETER O'NEILL HAS BEEN CRITICIZED FOR LIMITING ACCESS TO ROLLER SKATERS BIKERS AND EVEN FOLKS WANTING TO STROLL ALONG ITS PATHS THERE IS A SCHOOL OF THOUGHT THAT THE RICH PEOPLE LIVING ALONG THE RIVER ARE EXCLUDING EVERYBODY ELSE HE SAYS BUT IF YOU PROVIDE TOO MUCH PUBLIC ACCESS YOU'RE GOING TO DESTROY THE VERY THING YOU'RE TRYING TO CREATE BOISE OFFICIALS SAY THEY CAN'T QUANTIFY THE FULL ECONOMIC GAIN OF THE RIVER'S REVIVAL BUT CLEARLY THERE'S VALUE THAT IS GAINED FROM HAVING AN ATTRACTIVE RIVER SAYS DAVID EBERLE A VISITING PROFESSOR AT BOISE STATE UNIVERSITY HE SAYS THE RIVER FESTIVAL ALONE HAS GENERATED AS MUCH AS 20 MILLION IN LODGING SOUVENIRS FOOD PURCHASES AND OTHER EXPENSES IN A STUDY OF THE LOCAL REALESTATE MARKET HE FOUND THAT THE AVERAGE HOUSE AND LOT ALONG THE GREENBELT SELLS FOR 60000 MORE THAN AN EQUIVALENT HOUSE AWAY FROM THE RIVER IN CONTRAST TO BUSINESS'S WARNINGS OF ECONOMIC DOOM FROM CLEANUP REQUIREMENTS TODAY THE BOISE CHAMBER OF COMMERCE BOASTS ABOUT THE RIVER AS AN INCENTIVE TO GET COMPANIES TO MOVE TO THE AREA OVER TIME SAYS CHAMBER PRESIDENT JAY CLEMENS THE CLEANUP OF THE RIVER CERTAINLY HAD THE IMPACT OF BEING A STIMULUS TO THE ECONOMY IN OUR COMMUNITY WHILE SOME ECONOMIC ACTIVITY HAS MERELY BEEN SHIFTED FROM ONE PART OF TOWN TO ANOTHER THE NEW RIVERFRONT HAS GREATLY ADDED TO BOISE'S APPEAL OVERALL THE CITY IS GROWING AT A RAPID CLIP WITH A POPULATION OF 140000 TWICE WHAT IT WAS IN 1960 AFTER DECADES OF NEGLECTING THE RIVER MANY BOISEANS NOW WORRY WHETHER THEY WILL NOW LOVE IT TO DEATH WITH THE RIVER'S CLEANUP NOW LARGELY COMPLETE SAYS HUGH HARPER A RETIRED WILDLIFE OFFICIAL OUR BIG FIGHT IS KEEPING THE COTTONPICKING DEVELOPERS OUT OF IT 9404220094 940422 REVIEW & OUTLOOK EDITORIAL WHY THE HEALTH RUSH BILL AND HILLARY CLINTON HAVE SPENT THE WEEK BARNSTORMING THE COUNTRY FILLING AUDITORIUMS AND THE AIRWAVES WITH IMPASSIONED SPEECHES ON BEHALF OF ENACTING THEIR HEALTH REFORM PROPOSAL THIS YEAR SIMULTANEOUSLY TWO MAJOR OPINION POLLS OUT THIS WEEK SHOW A STARTLING DROP IN PUBLIC SUPPORT FOR THE CLINTONS' PLAN WHEN IS WASHINGTON GOING TO RECOGNIZE THE FLASHING POLITICAL SIGNAL SLOW DOWN ON HEALTH CARE NOW THE CLINTONS DESERVE SOME CREDIT FOR IGNITING A NATIONAL CONVERSATION ABOUT THE US HEALTH CARE SYSTEM WHAT'S BECOME CLEAR THOUGH IS THAT MOST VOTERS DON'T THINK THE DEBATE IS OVER AND DON'T WANT IT CUT OFF BY AN OBVIOUSLY CONFUSED CONGRESS RUSHING TO JUDGMENT AND A VOTE BY THE OCTOBER RECESS UNLESS WE ACTUALLY WANT TO VOTE A BOTCHED AND FLAWED SYSTEM INTO LAW THE CASE FOR SLOWING DOWN IS OVERWHELMING SENATE MAJORITY LEADER GEORGE MITCHELL ESSENTIALLY ACKNOWLEDGED LAST WEEKEND THAT CLINTONCARE IS ON POLITICAL LIFESUPPORT BY FLOATING THREE ALTERNATIVES THAT WOULD PRESERVE THE ORIGINAL'S COERCIVE ELEMENTS BUT PRESUMABLY COST LESS MEANWHILE OVER IN JOHN DINGELL'S HOUSE COMMITTEE HEADED FOR A VOTE NEXT WEEK CHAIRMAN JOHN HIMSELF THREW THE CLINTONS' DRUG REVIEW BOARD OVER THE SIDE WEDNESDAY I DO NOT DESIRE TO SINGLE OUT NEW OR BREAKTHROUGH' DRUGS FOR DRACONIAN PRICE REGULATION SAID CONGRESS'S MOST INSTINCTIVELY DRACONIAN REGULATOR ALSO DITCHED WAS THE PLAN TO LET THE GOVERNMENT BLACKLIST FROM MEDICARE DRUGS DEEMED TOO EXPENSIVE LET'S LOOK AT SOME OF THIS WEEK'S POLLING NUMBERS THE USA TODAY/GALLUP/CNN POLL FOUND THE CLINTON PLAN GETS ITS WORST RATINGS YET WITH ONLY 43 IN FAVOR AND 47 OPPOSED LAST OCTOBER HIS PLAN WAS BACKED 59 TO 33 BETWEEN A HEALTH CARE PLAN GUARANTEEING PERMANENT COVERAGE THE CLINTON PLAN AND ONE THAT ONLY OFFERS ACCESS TO AFFORDABLE COVERAGE 63 SUPPORTED THE MORE MODEST APPROACH AND 34 BACKED PERMANENT COVERAGE AND ASKED IF CHANGES SHOULD COME GRADUALLY OVER SEVERAL YEARS OR PASS THIS YEAR THE PUBLIC OPTS FOR THE GOSLOW APPROACH BY 59 TO 37 THE LOS ANGELES TIMES POLL WHILE REPORTING A PLURALITY SUPPORTING THE CLINTON PLAN FOUND THAT 68 WOULDN'T BE UPSET IF THE PLAN DIDN'T PASS THIS YEAR FOR ALL THIS MR CLINTON STILL VOWS TO VETO ANY BILL THAT DOESN'T MANDATE HEALTH CARE FOR EVERY AMERICAN EVEN AS HIS OWN PARTY'S LEADING FIGURES DISMANTLE HIS PLAN AND CONTRIVE RUBE GOLDBERG REFORMS OF THEIR OWN THERE IS A SIMPLE EXPLANATION FOR THIS WASHINGTON DISCONNECT POLITICS THE DEMOCRATS ARE WORRIED THEY MAY LOSE ENOUGH HOUSE AND SENATE SEATS IN NOVEMBER THAT IT WILL BE IMPOSSIBLE FOR THEM TO PASS ANY VERSION OF CLINTONCARE NEXT YEAR THUS THE SCRAMBLE TO RAM HEALTH CARE REFORM THROUGH THIS YEAR EVEN IF IT DOES FAINTLY RESEMBLE DR FRANKENSTEIN'S FRIEND WE UNDERSTAND ALL THAT BUT THE AMERICAN PEOPLE LATELY HAVE FOUND WAYS TO METE OUT PUNISHMENT FOR LEGISLATIVE FIASCOS THE LAST TIME CONGRESS RUSHED THROUGH A MAJOR HEALTH BILL IN AN ELECTION YEAR CATASTROPHIC HEALTH INSURANCE IT PROVED SO UNPOPULAR THAT CONGRESS HAD TO REPEAL IT THE FACT IS THAT AMERICANS HAVE LEARNED A LOT ABOUT HEALTH CARE SINCE PRESIDENT CLINTON'S PLAN CAME OUT AND AFTER A NONSTOP SEVENMONTH WHITE HOUSE PR BLITZ THE AMERICAN PUBLIC ISN'T CONVINCED UNIVERSAL COVERAGE IS WORTH LIMITS ON CHOICE OR AN EMPLOYER MANDATE PLEASE NO WHINING THAT THE HARRY AND LOUISE ADS SINGLEHANDEDLY CRUSHED THE FLOWER OF REFORM THERE MAY WELL BE SUPPORT FOR INCREMENTAL REFORMS ON PORTABILITY AND THE LIKE BUT THE PUBLIC IS CLEARLY SEEKING A GREATER COMFORT LEVEL WITH OVERHAULING 14 OF GDP OF COURSE WE DON'T WANT THE WHITE HOUSE SPINNERS DENOUNCING US WITH THE HORRIBLE OWORD FAR BE IT FROM US TO FOMENT OBSTRUCTION STILL THERE OUGHT TO BE MORE PUBLIC CONSENSUS THAN IS NOW EVIDENT ON THE CORE PHILOSOPHY GUIDING ANY CHANGE IN THE HEALTH SYSTEM BUT IS THERE A BETTER WAY TO DIVINE THE PUBLIC'S DESIRE THAN LAST WEEK'S GREENBERG POLL THERE IS LET'S PUT THE HEALTH CARE ISSUE AT THE CENTER OF THIS FALL'S CONGRESSIONAL ELECTIONS LET CANDIDATES GO ON RECORD FOR OR AGAINST EMPLOYER MANDATES UNIVERSAL COVERAGE OVERSIGHT BY GOVERNMENT BOARDS AND CONTROLS ON PRICES LET THE CANDIDATES DEBATE THEIR POSITIONS IN FRONT OF HOMETOWN AUDIENCES AND THEN LET THE VOTERS REGISTER THEIR PREFERENCES IN AN ACTUAL ELECTION INDEED THERE IS A PRECEDENT FOR THIS APPROACH IN 1991 MASTER CAMPAIGN STRATEGIST JAMES CARVILLE GOT DEMOCRAT HARRIS WOFFORD ELECTED IN A SPECIAL SENATE ELECTION IN PENNSYLVANIA BY RUNNING ON HEALTH CARE REFORM WE THINK THE CARVILLE APPROACH IS MUCH MORE LIKELY TO PRODUCE A PUBLICLY SUPPORTABLE HEALTH CARE OUTCOME THAN THE MADDOCTOR OPERATIONS NOW UNDERWAY IN CONGRESS 9404220093 940422 REVIEW & OUTLOOK EDITORIAL ASIDES CRIME AND COCAINE AMID PASSING ITS MAKEEVERYONEHAPPY CRIME BILL YESTERDAY THE HOUSE TANGLED OVER COCAINE AND CRACK NOTING THAT SENTENCES FOR CRACK CONVICTIONS WERE HARSHER THAN FOR COCAINE NORTH CAROLINA'S CHARLIE ROSE ARGUED OUR PRISONS ARE FULL OF BLACK MALES WHO HAVE USED CRACK COCAINE AND THE MORE AFFLUENT WHITE BOYS IN THE COMMUNITY WHO HAVE USED POWDER COCAINE ARE IN THE COMMUNITY ON PROBATION NATURALLY REP WILLIAM HUGHES D NJ THOUGHT THE LOGICAL THING TO DO WAS LOWER CRACK'S PENALTIES TO THE LEVEL FOR POWDER REPUBLICANS BLANCHED AND SO A COMPROMISE THE HOUSE WILL ASK THE US SENTENCING COMMISSION TO FIGURE IT OUT 9404220092 940422 POTOMAC WATCH CLINTON ABROAD ALL POLITICS IS LOCAL BY PAUL A GIGOT WINSTON CHURCHILL SURVEYING THE 1930S FROM POLITICAL EXILE DESCRIBED A BRITAIN DESCENDING INCONTINENTLY FECKLESSLY THE STAIRWAY WHICH LEADS TO A DARK GULF THERE ARE NO NAZIS IN THE 1990S JUST LESSER THUGS BUT BILL CLINTON IS NONETHELESS DESCENDING HIS OWN FOREIGN POLICY STAIRWAY WALKING AMERICA DOWN A PATH OF ERODING CREDIBILITY US PRESTIGE BUILT OVER A DECADE FROM GRENADA TO LIBYA THROUGH THE FALLEN BERLIN WALL AND THE GULF WAR IS BEING SQUANDERED STEP BY STEP IN BOSNIA HAITI SOMALIA KOREA AND SO ON HOW HAS THIS HAPPENED DO NOT BLAME THE JOINT CHIEFS THEY ARE RELUCTANT TO FIGHT IN BOSNIA BUT WOULD SALUTE IF THEY SAW THE POLITICAL WILL CHAIRMAN JOHN SHALIKASHVILI DOESN'T HAVE THE COLIN POWELLLIKE STATURE TO RESIST A DETERMINED PRESIDENT ANTHONY LAKE HAS BEEN RIGHT ALL ALONG ABOUT THE SERBS BUT STILL CAN'T PERSUADE HIS PRESIDENT TO READ A SECURITY BRIEFING EVERY DAY WARREN CHRISTOPHER BURNED ON BOSNIA A YEAR AGO HAS DECIDED HIS LEGACY WILL COME AS A MIDEAST ENVOY NO THIS BUCK STOPS IN THE WEST WING WITH POLITICAL ADVISERS AND A PRESIDENT WHO BELIEVE IN THE GREENBERG DOCTRINE POLLSTER STAN GREENBERG EARNING HIS 2 MILLION A YEAR OR 10 TIMES WHAT GEORGE BUSH PAID FOR POLLS IS EFFECTIVELY MOONLIGHTING AS MR CLINTON'S HENRY KISSINGER THE GREENBERG DOCTRINE ISN'T SIMPLY THAT DOMESTIC MATTERS SHOULD DOMINATE FOREIGN POLICY THIS IS PART OF IT AND BY ITSELF WOULD EVEN BE DEFENSIBLE BUT LIKE HIS BABY BOOM PEER AND PRESIDENT MR GREENBERG IS MORE POLITICALLY COMPLICATED AS A CHILD OF JFK'S 1960S AND OBSERVER OF REAGAN'S 1980S HE KNOWS AMERICANS WANT THEIR PRESIDENT TO APPEAR TO LEAD THE WORLD BUCHANANITE ISOLATIONISM IS NOT A MAJORITY VIEW SO ONE GREENBERG TENET IS TO CONTINUE TO SPEAK THE TRADITIONAL PRESIDENTIAL LANGUAGE OF ENLARGEMENT ENGAGEMENT AND LEADERSHIP BUT AS A LIBERAL CHILD OF VIETNAM TOO HE IS EXTREMELY WARY OF RISKING THE POLITICAL CAPITAL NECESSARY TO FULFILL SUCH LOFTY AIMS THUS THE GREENBERG DOCTRINE WHICH IS TO SPEAK LOUDLY BUT TRY LIKE HELL NOT TO USE A STICK WHILE THIS MAY PLAY AT HOME FOR A WHILE IT HAS UNRAVELED ABROAD BECAUSE IT MARRIES WILSONIAN RHETORIC WITH WARREN HARDING MEANS IT COMMITS US PRESTIGE WITHOUT THE WILL TO FOLLOW THROUGH SO IN BOSNIA MR CLINTON HAS CONTINUED TO SPEAK THE LANGUAGE OF INTERVENTION WITHOUT ACTUALLY FACING UP TO THE CONSEQUENCES NATO'S GORAZDE BOMBING INDEED WAS DONE LAST WEEK WITH ALMOST NO REAL PRESIDENTIAL INVOLVEMENT THE MATTER WAS DELEGATED TO NATO AND THE UNITED NATIONS BY ADVISERS WHO DIDN'T WANT TO DISTRACT THEIR LEADER FROM HEALTH CARE WHEN THE BOMBING FIRST SEEMED TO WORK THERE WAS MUCH PRIVATE WHITE HOUSE GLOATING THAT IT HAD KNOCKED WHITEWATER FROM THE HEADLINES BUT AFTER THE SERBS CALLED THE BOMBERS' BLUFF IT BECAME CLEAR THE CLINTONITES HAD GIVEN NO THOUGHT TO WHAT MIGHT HAPPEN NEXT REGARDING ANOTHER MESS HAITI ONE US SENATOR SAID THIS WEEK THAT PRESIDENT CLINTON IS A GOOD AND DECENT HUMAN BEING BUT THIS POLICY TOWARDS HAITI IS UNCONSCIONABLE THE US POLICY SAYS ONE THING BUT DOES JUST THE OPPOSITE REPUBLICAN JOHN MCCAIN NO TOM HARKIN IOWA DEMOCRAT AND LIBERAL MR HARKIN HAS FIGURED OUT A GREENBERG COROLLARY WHICH IS THAT ALL FOREIGN POLICY IS A SUBSET OF DOMESTIC POLITICS MR CLINTON'S HAITI EXPERTS UNDERSTAND THAT US SANCTIONS AREN'T IMPRESSING THE ISLAND'S MILITARY RULERS BUT ARE IMPOVERISHING ITS PEASANTS BUT LIBERALS IN CONGRESS WON'T ABIDE LIFTING SANCTIONS SO LOOK FOR MR CLINTON TO PLACATE THE LIBERALS SOON AND TOUGHEN SANCTIONS CONGRESS IN PARTICULAR MUST BE APPEASED UNDER THIS COROLLARY ESPECIALLY IF A MEMBER CAN HELP ON HEALTH CARE THUS THE WHITE HOUSE ALLOWS IRISH RADICAL GERRY ADAMS INTO THE US TO PLEASE TED KENNEDY EVEN THOUGH THIS INFURIATES THE SAME BRITISH MR CLINTON MIGHT NEED TO LIFT A BOSNIAN ARMS EMBARGO THE STATE DEPARTMENT URGES RECOGNITION OF MACEDONIA WHICH ABUTS THE BOSNIAN INFERNO BUT THE WHITE HOUSE SAYS NO TO SATISFY MARYLAND SEN PAUL SARBANES AND WHILE MOST OF HIS SENIOR ADVISERS THINK THAT REVOKING CHINA'S TRADE STATUS WOULD BE DUMB MR CLINTON STILL DEFERS TO TRADE HAWK GEORGE MITCHELL THE IRONY HERE IS THAT DECISIONS MADE TO HUSBAND POLITICAL CAPITAL IN THIS WAY COULD SQUANDER IT IN THE LONG RUN BILL CLINTON WAS RIGHT THAT FOREIGN AND DOMESTIC POLICY ARE INDIVISIBLE SAYS WILL MARSHALL ERSTWHILE CLINTON SPEECHWRITER AND HEAD OF THE PROGRESSIVE POLICY INSTITUTE PEOPLE MAKE A JUDGMENT ABOUT BILL CLINTON AS A LEADER THAT CARRIES OVER TO DOMESTIC POLITICS MR GREENBERG SURELY KNOWS THIS WHICH IS ONE REASON WHY MR CLINTON WAS SUDDENLY PAYING MORE ATTENTION TO BOSNIA THIS WEEK BUT HIS LATEST PROPOSAL FEELS LIKE ANOTHER HALFWAY STEP A GREENBERGIAN STAB AT THE APPEARANCE OF LEADERSHIP LACED WITH CAVEATS ABOUT WHAT OUR ALLIES WILL AGREE WITH ALL OF WHICH WOULD SEEM TO OFFER OPPORTUNITY FOR THE LOYAL OPPOSITION IN MAY 1978 ALL 38 REPUBLICAN SENATORS UNITED TO ISSUE A BLISTERING CRITIQUE OF CARTER FOREIGN POLICY BUT WHEN BILL KRISTOL TALKED TO GOP SENATORS LAST WEEKEND ABOUT CLINTON FOREIGN POLICY MOST REPLIED THAT THE PUBLIC DOESN'T CARE APPARENTLY THEY BELIEVE IN THE GREENBERG DOCTRINE TOO 9404220091 940422 THE FALSE GODS OF EARTH DAY BY ROBERT A SIRICO EARTH DAY CELEBRATED TODAY HAS TAKEN ON A DISTINCTLY RELIGIOUS TONE IT IS A SIGN OF A GROWING STRAIN OF MODERN POLITICAL THEOLOGY THAT ATTEMPTS TO LINK RELIGION STATIST POLITICS AND EXTREME ENVIRONMENTALISM THE NATIONAL RELIGIOUS PARTNERSHIP FOR THE ENVIRONMENT FOR EXAMPLE IS SPENDING 45 MILLION TO DISTRIBUTE TENS OF THOUSANDS OF ENVIRONMENTAL AWARENESS KITS WITH AN OVERTLY POLITICAL AGENDA TO THE NATION'S RELIGIOUS CONGREGATIONS FOR USE THIS WEEKEND AMONG THE SUGGESTIONS FOR WORSHIP IN MAINLINE PROTESTANT CHURCHES FOR EXAMPLE IS A CONFESSION OF ENVIRONMENTAL SINS ACCORDING TO AN APRIL 16 WASHINGTON POST REPORT THE CELEBRANT SAYS WE USE MORE THAN OUR SHARE OF THE EARTH'S RESOURCES WE ARE RESPONSIBLE FOR MASSIVE POLLUTION OF EARTH WATER AND SKY WE THOUGHTLESSLY DROP GARBAGE AROUND OUR HOMES SCHOOLS CHURCHES PLACES OF WORK AND PLACES OF PLAY WE SQUANDER RESOURCES ON TECHNOLOGIES OF DESTRUCTION BOMBS COME BEFORE BREAD THE CONGREGATION RESPONDS WE ARE KILLING THE EARTH WE ARE KILLING THE WATERS WE ARE KILLING THE SKIES FOR MANY PEOPLE ENVIRONMENTALISM HAS BECOME A RELIGION IN ITSELF AND ENVIRONMENTALISTS HAVE TRIED TO SUPERIMPOSE AN EXALTED VIEW OF NATURE ONTO TRADITIONAL TEACHINGS REPRESENTATIVE IS MATTHEW FOX A FORMER CATHOLIC PRIEST AND AUTHOR OF THE COMING OF THE COSMIC CHRIST MR FOX DESCRIBES THE EARTH AS A KIND OF CHRIST FIGURE AND DEEMS AS CHRISTOFASCISM ANY THEOLOGY THAT VIEWS JESUS'S PERSONHOOD AS A UNIQUE REVELATION HE URGES CHRISTIANS TO MOVE BEYOND A THEOLOGY BASED ON SIN AND REDEMPTION TOWARD A CREATION SPIRITUALITY WITH NATURE AS THE PRIMARY REVELATION ENVIRONMENTALISM HAS EVEN SPAWNED A REVIVAL OF PAGAN EARTH WORSHIP IN THE FORM OF GAIA A CONCEPT FIRST ADVANCED BY ATMOSPHERIC SCIENTIST JAMES LOVELOCK MORE THAN 20 YEARS AGO THE PREMISE OF GAIAN THEORY IS THAT THE EARTH ITSELF IS A SUPERORGANISM BOTH LIVING AND DIVINE THE MOVEMENT HAS FOUND FOLLOWERS AMONG FEMINISTS ATTRACTED TO THE IDEA OF MOTHER EARTH OR AN EARTH GODDESS WHILE SOME MIGHT WRITE OFF THESE EXAMPLES AS COMING FROM A LUNATIC FRINGE THEY CANNOT BE SO EASILY DISMISSED VICE PRESIDENT GORE DEVOTES AN ENTIRE CHAPTER TO ENVIRONMENTALISM OF THE SPIRIT IN HIS WIDESELLING EARTH IN THE BALANCE AND AT THE UNSPONSORED EARTH SUMMIT IN RIO DE JANEIRO IN 1992 A CONTINGENT FROM THE MAINLINE UNITED CHURCH OF CHRIST HELD A DEMONSTRATION THAT OPENED WITH THE TRADITIONAL HYMN WERE YOU THERE WHEN THEY CRUCIFIED MY LORD SUBSTITUTING EARTH FOR LORD SUCH BELIEFS POSE A THREAT TO ORTHODOX FAITHS FOR WESTERN RELIGIOUS TRADITIONS THE ROLE OF FAITH IN PUBLIC LIFE HAS BEEN TO STRIVE FOR JUSTICE AND TO IMPROVE LIFE NOT PRIMARILY FOR PLANTS AND ANIMALS BUT FOR HUMAN BEINGS A GENERALIZED ATTACK ON DEVELOPMENT AND CONSUMPTION COMMON AMONG THE ENVIRONMENTALIST FAITHFUL UNDERMINES THE ROLE THAT ECONOMIC GROWTH HAS PLAYED IN ALLOWING A MORE HUMANE EXISTENCE FOR PEOPLE AS AN EMPIRICAL MATTER THE ENVIRONMENT IS FAR CLEANER WHERE ECONOMIES ARE FREE FROM THE STATISM ADVOCATED BY MANY ENVIRONMENTALISTS MOREOVER THE ATTEMPT TO MAKE EARTH DAY A RELIGIOUS HOLIDAY FORGETS THE PRIMARY PURPOSE OF TRADITIONAL FAITH TO AVOID PERSONAL SIN AND TO ATTAIN SALVATION TO DO THIS MAN MUST OBEY GOD'S LAW AS FOUND IN THE 10 COMMANDMENTS THERE IS NO COMMANDMENT AGAINST LITTERING BUT THERE IS A VERY STRAIGHTFORWARD ONE ABOUT WORSHIPING FALSE GODS THIS COMMANDMENT SHOULD CAUSE THE EARTH DAY RELIGIONISTS TO RESIST THE TEMPTATION TO REPLACE GOD WITH THE EARTH AS THE CENTER OF ADORATION THE GENESIS ACCOUNT OF CREATION IS CLEAR IN THE CENTRAL POINT THAT ENVIRONMENTALISTS FIND SO SCANDALOUS THE EARTH WAS A GIFT FROM GOD FOR OUR USE AFTER GOD CREATED MAN AND WOMAN IN HIS IMAGE HE BLESSED THEM WITH THE WORDS BE FERTILE AND MULTIPLY FILL THE EARTH AND SUBDUE IT HAVE DOMINION OVER THE FISH OF THE SEAS THE BIRDS OF THE AIR AND ALL THE LIVING THINGS THAT MOVE ON THIS EARTH GENESIS 128 THIS IS THE FIRST CHARGE LONG BEFORE THE FALL THAT WAS GIVEN TO HUMAN BEINGS DIRECTLY BY GOD IN THE SECOND CHAPTER OF GENESIS AFTER GOD HAD CREATED THE EARTH FOR MAN'S SAKE HE CREATED MAN TO TILL THE SOIL IT WAS AN EXPLICIT COMMAND TO MIX LABOR WITH GOD'S CREATION TO MAKE MORE OF THAT WHICH APPEARS IN A PURE STATE OF NATURE GOD'S COVENANT WITH ADAM REQUIRED HIM TO EXERCISE DOMINION OVER THE EARTH NO DOUBT THERE ARE RIGHT AND WRONG WAYS TO TILL AND KEEP WAYS THAT ARE MORE OR LESS PLEASING TO GOD AND THAT SHOW A GREATER OR LESSER REGARD FOR THE ESSENTIAL END FOR WHICH THE MATERIAL WORLD WAS MADE THE CAPACITY OF THE LAND TO CONTINUE TO PRODUCE SHOULD NOT BE PERMANENTLY INJURED AND ONE MUST BE CAREFUL NOT TO INFLICT UNNECESSARY PAIN ON ANY OF GOD'S CREATURES BUT THE WELLFORMED CONSCIENCE KNOWS THE DIFFERENCE IT IS NOT PART OF THE JEWISH AND CHRISTIAN UNDERSTANDING OF FAITH THAT NATURE IN ITSELF HAS AN INDEPENDENT AND METAPHYSICAL RIGHT TO BE UNTOUCHED PRESERVED AND ADORED IT IS GOD NOT GAIA WHOM WE WILL FACE ON JUDGMENT DAY PAULIST FATHER SIRICO IS PRESIDENT OF THE ACTON INSTITUTE FOR THE STUDY OF RELIGION AND LIBERTY IN GRAND RAPIDS MICH 9404220090 940422 REVIEW & OUTLOOK EDITORIAL MAYHEM IN MEDAN AL GORE SUGGESTED DURING THE GATT PROCEEDINGS IN MARRAKESH RECENTLY THAT LABOR ISSUES SHOULD ENTER THE NEXT ROUND OF TRADE TALKS BUT THE CLINTON ADMINISTRATION AND OTHER WESTERN LEADERS WHO FIND A COMPELLING ISSUE IN WORKER RIGHTS IN DEVELOPING COUNTRIES MIGHT WANT TO STEP BACK FROM THE ABSTRACTIONS TO CONSIDER WHAT HAPPENED THIS WEEK IN INDONESIA WHERE A STRUGGLE IS UNDERWAY TO ESTABLISH AN INDEPENDENT TRADE UNION TENS OF THOUSANDS OF STRIKERS IN THE CITY OF MEDAN WENT ON A RAMPAGE OF LOOTING AND VANDALISM THEIR ACTIVITIES INCLUDED THE LYNCHING OF KWOK JOE LIP A FACTORY OWNER WHO HAD DRIVEN INTO TOWN TO LOOK AFTER HIS PROPERTY HE WAS DRAGGED FROM HIS CAR BY A MOB AND CLUBBED TO DEATH MR KWOK WORE THE GUILT FOR HIS PARTICULAR CRIME ON HIS FACE HE WAS CHINESE SO ARE MANY OF INDONESIA'S ENTREPRENEURS THOUGH THEY ACCOUNT FOR A MERE 3 OF THE TOTAL POPULATION REPORTERS IN THE NORTH SUMATRAN CITY SAY THAT THE RIOTERS DISTRIBUTED LEAFLETS VILLIFYING THE CHINESE AND CALLING FOR THEM TO BE DESTROYED A HINT OF FARRAKHANISM'S DIRECTION IN THE US A SHOPPING MALL OWNED BY A CHINESE INDONESIAN WAS SACKED ALONG WITH ABOUT 150 OTHER CHINESEOWNED BUSINESSES TOO OFTEN US POLICY MAKERS SEE PLACES LIKE INDONESIA MERELY AS PLATFORMS FROM WHICH CHEAP EXPORTS ARE LAUNCHED AT THEIR COMPETING INDUSTRIES IT MUST BE A SURPRISE TO DISCOVER THAT THESE ARE COMPLEX SOCIETIES AND PERHAPS REQUIRE AN APPROACH MORE CIRCUMSPECT THAN SIMPLY BERATING THEM FOR NOT BEING MORE LIKE THE US THE INDONESIAN SEJAHTERA TRADE UNION HAS BEEN TRYING TO ESTABLISH ITSELF AS AN ALTERNATIVE TO THE COUNTRY'S OFFICIALLY SANCTIONED ALLINDONESIAN WORKERS UNION WHICH SOME FIND TOO DOCILE PERHAPS BECAUSE MANY OF ITS TOP BRASS ARE MEMBERS OF THE COUNTRY'S RULING PARTY CRITICS ALSO COMPLAIN THAT THE ARMY HAS BEEN USED TO SUPPRESS STRIKES AND THAT IT HAS ALLEGEDLY BEEN INVOLVED IN THE TORTURE AND MURDER OF LABOR ACTIVISTS THAT IT FINDS TOO MILITANT NONE OF THIS FITS THE WESTERN MODEL OF LABOR RELATIONS AND CERTAINLY THE ARMY OUGHT TO STAY ON THE SIDELINES EXCEPT WHEN CIVIC PEACE IS REALLY THREATENED IN FACT THE STRIKES THAT HAVE SHAKEN JAKARTA MEDAN AND OTHER CITIES IN THE PAST SEVERAL MONTHS SUGGEST THAT THE REPRESSION HAS IF ANYTHING RAISED THE LEVEL OF MILITANCE AND VIOLENCE AS TO THE ACTUAL WORKPLACE ISSUES THERE IS NOTHING INHERENTLY HUMAN RIGHTSY ABOUT THE MAIN ITEM ON THE SEJAHTERA UNION'S AGENDA A HUGE HIKE IN THE MINIMUM WAGE WHICH THE US HAS SUPPORTED IN GENERAL RATHER THIS IS A RALLYING FLAG FOR A POLITICAL MOVEMENT MINIMUM WAGE LAWS EFFECTIVELY CREATE PROTECTED CLASSES OF WORKERS WHO ARE THEN BEHOLDEN TO POLITICIANS TO MAINTAIN THOSE PROTECTIONS THE REAL VICTIMS ARE NOT EMPLOYERS BUT OTHER CLASSES OF WORKERS TYPICALLY THE YOUNG OR UNSKILLED WHO WANT TO COMPETE FOR JOBS NOR CAN IT BE SAID THAT THE COUNTRY'S TOTAL WORK FORCE HAS FARED BADLY UP TO NOW INDONESIA'S 187 MILLION PEOPLE HAVE SEEN A TENFOLD RISE IN THEIR INCOME PER HEAD IN THE LAST 30 YEARS THAT TENSIONS ARE ROILING UP IN INDONESIA IS HARDLY A SURPRISE HOWEVER AMBITIOUS FOLKS ARE BEGINNING TO POSITION THEMSELVES FOR THE INEVITABLE CURTAIN CALL ON PRESIDENT SUHARTO'S 27YEAROLD NEW ORDER THE GOVERNMENT ITSELF HAS SEEN THE NEED TO OPEN UP THE POLITICAL DEBATE ALLOWING MORE FREEDOM FOR LABOR AND A HOST OF OTHER INTERESTS THESE ARE POSITIVE STEPS AND HAVE COME ABOUT NOT PRIMARILY BECAUSE OF TRADE THREATS FROM THE US IN ALL A CAUTIONARY TALE FOR OUR TRADE WARRIORS 9404220089 940422 IMMIGRANTS LEAD A RECOVERY BY JOEL KOTKIN LOS ANGELES CALIFORNIA'S ECONOMY IS SHOWING SIGNS OF RESURGENCE HOME SALES NET NEW JOBS AND NEW BUSINESS FORMATIONS ARE ALL ON THE UPSWING AFTER SEVERAL YEARS OF RECESSION COMPETITIVE CALIFORNIA INDUSTRIES SUCH AS COMPUTER SOFTWARE ENVIRONMENTAL CONTROLS MEDICAL EQUIPMENT ENTERTAINMENT AND INTERNATIONAL TRADE ARE NOW BEGINNING TO GROW FAST ENOUGH TO OFFSET LOSSES FROM THE GUTTING OF THE DEFENSE SECTOR RESPONSIBLE FOR AS MANY AS 47 OF THE STATE'S JOB LOSSES AND THE LONGTERM DOWNTURN IN THE CONSTRUCTION CYCLE PRESIDENT CLINTON AND GOV PETE WILSON ARE ALREADY JOCKEYING TO TAKE CREDIT BUT THE REAL HEROES ARE THE STATE'S MUCH VILIFIED IMMIGRANTS PERHAPS MORE THAN ANY GROUP IN CALIFORNIA THE IMMIGRANTS HAVE TAKEN TO THE CREATIVE SIDE OF JOSEPH SCHUMPETER'S CREATIVE DESTRUCTION PROCESS TAKING ADVANTAGE OF THE DOWN MARKET TO CARVE OUT A NEW FUTURE FOR THEMSELVES INDEED AT A TIME WHEN MANY FANCY ANGLO NEIGHBORHOODS ON THE WEST SIDE OF LOS ANGELES HAVE BEEN PUMMELED BY DEFENSE CUTS PRICES IN AREAS LIKE EAST LOS ANGELES THE SAN GABRIEL VALLEY AND ORANGE COUNTY'S LITTLE SAIGON HAVE GENERALLY FARED FAR BETTER ONE SIGN OF IMMIGRANT ENERGY CAN BE SEEN IN THE PURCHASES OF NEW HOMES DEPRESSED HOME PRICES MAY BE WELL DEPRESSING FOR OLDER RESIDENTS BUT THEY HAVE EXPANDED THE AFFORDABILITY OF HOUSING IN THE STATE TO MORE THAN 40 OF CALIFORNIA HOUSEHOLDS MORE THAN THREE TIMES THE LEVEL OF 1989 THIS HAS GIVEN IMMIGRANTS AN OPPORTUNITY TO BUY A HITHERTO UNACHIEVABLE PIECE OF THE CALIFORNIA DREAM THE 10 MOST COMMON NAMES FOR RECENT HOME BUYERS IN CALIFORNIA INCLUDE LEE MARTINEZ RODRIGUEZ GARCIA NGUYEN AND WONG AMONG ORANGE COUNTY HOME BUYERS NGUYENS OUTNUMBER SMITHS 2 TO 1 BUT PERHAPS THE MOST IMPORTANT CONTRIBUTIONS CAN BE SEEN IN THE DRAMATIC RESTRUCTURING OF CALIFORNIA'S ECONOMY MOST IMMIGRANT ENTREPRENEURS HAVE FOCUSED ON SUCH COMMERCIAL ENDEAVORS AS FOOD PROCESSING TEXTILES ELECTRONIC COMPONENTS SOFTWARE AND MEDICAL EQUIPMENT ALL FIELDS WHERE THE STATE'S MARKET SHARE HAS ACTUALLY GROWN DURING THE RECESSION ACCORDING TO THE ORANGE COUNTY BUSINESS JOURNAL SIX OF THAT COUNTY'S 15 TOP MANUFACTURING CEOS WERE BORN OUTSIDE THE US IN CHINA TAIWAN JAPAN MEXICO THE FORMER YUGOSLAVIA AND PAKISTAN IMMIGRANT WORKERS HAVE ALSO BEEN CRITICAL TO THIS PROCESS IN NORTHERN CALIFORNIA'S SILICON VALLEY FOR EXAMPLE ROUGHLY ONE IN THREE ENGINEERS IS NOW AN IMMIGRANT MOST ARE ASIAN BUT LARGE NUMBERS OF RUSSIANS BRITONS AND ISRAELIS ARE THROWN INTO THE MIX RELIANCE IN THE ELECTRONICS FIELD ON VIETNAMESE TECHNICIANS IN ORANGE COUNTY HAS BECOME SO GREAT THAT ONE ANGLO EXECUTIVE RECENTLY JOKED THAT HE WAS SETTING UP AN AFFIRMATIVE ACTION PROGRAM FOR PEOPLE WHOSE FIRST LANGUAGE ISN'T VIETNAMESE TO AN ASTOUNDING EXTENT THIS ECONOMIC RESURGENCE HAS TAKEN PLACE DESPITE THE POLITICAL CLASS'S EFFORTS TO HELP FOR THE ENTREPRENEURS AND SMALL INVESTORS BILL CLINTON'S TAX BILL ADDED NEW BURDENS OVERALL IT MAY HAVE EXPANDED CALIFORNIA'S NET TAX OUTFLOW TO WASHINGTON TO AS MUCH AS 25 BILLION THIS YEAR MORE THAN TWICE THE EXPECTED ONESHOT STIMULUS OF EARTHQUAKE AID BUT TAXES AREN'T THE ONLY BURDEN PLACED BY WASHINGTON ON CALIFORNIA'S NASCENT RECOVERY NEW REGULATORY RESTRAINTS INCLUDING TOUGH PROPOSED AIR POLLUTION REGULATIONS COULD CUT OFF OPPORTUNITIES FOR THOUSANDS OF FIRMS BOTH LARGE AND SMALL MANY OF THEM MINORITYOWNED MEANWHILE MR CLINTON'S FOOD AND DRUG ADMINISTRATION THREATENS TO BECOME THE BIGGEST PROBLEM FACING MEDICAL INSTRUMENT FIRMS INCREASINGLY A KEY COMPONENT OF THE STATE'S INDUSTRIAL SECTOR EVEN THE CLINTON DEFENSE CONVERSION PROGRAM HEAVILY PROMOTED BY THE LIKES OF SEN BARBARA BOXER AS KEY TO SAVING THE STATE'S ECONOMY HAS BEEN INEFFECTIVE FOCUSED LARGELY ON BIG DEFENSE COMPANIES MOST OF WHICH HAVE LITTLE INCLINATION TO CONVERT IT HAS PROVED A BONANZA FOR BUREAUCRATS AND UNIVERSITY TYPES CLOSE TO THE DEMOCRATIC ESTABLISHMENT BUT THOUSANDS OF SMALLER FIRMS ALREADY MAKING THE TRANSITION TO COMMERCIAL FIELDS FIND THE CLINTON PROGRAM VIRTUALLY INACCESSIBLE ALTHOUGH HIS RECENT REGULATORY REFORMS HAVE BEEN A NET POSITIVE GOV WILSON'S CLAIM TO AIDING THE RECOVERY IS JUST AS SPECIOUS MR WILSON INSTITUTED MASSIVE TAX INCREASES EARLY IN HIS TERM AND HIS ASSERTION THAT THE STATE WAS A BAD PRODUCT EPITOMIZED THE DEFEATISM OF THE STATE'S POLITICAL CLASS MOREOVER HIS TARGETING OF IMMIGRANTS AS THE SCAPEGOATS OF THE RECESSION HAS BEEN EQUALLY DAMAGING WITH CLOSE TO ONETHIRD OF ALL ANGELENOS AND A QUARTER OF SAN FRANCISCO AREA AND ORANGE COUNTY RESIDENTS BEING FOREIGNBORN ATTACKING IMMIGRANTS AS A BURDEN IS TANTAMOUNT TO PREDICTING THE STATE'S INEVITABLE DEMISE THIS MISUNDERSTANDING OF CALIFORNIA'S ENTREPRENEURIAL AND IMMIGRANTDRIVEN ECONOMY IS SHARED WIDELY IN THE STATE'S ACADEMIC AND MEDIA ESTABLISHMENT ON THE LEFT WHICH DOMINATES THE REPORTING FROM THE STATE'S MAJOR NEWSPAPERS MINORITIES AND WOMEN GROUPS PLAYING KEY ROLES IN THE CURRENT ENTREPRENEURIAL EXPLOSION ARE ALMOST INVARIABLY CAST AS VICTIMS OF A HOPELESSLY RACIST AND SEXIST SOCIETY THE STATE'S ACADEMIC ELITE LABORS MIGHTILY TO SUPPRESS ANY NOTION IN THE PRESS THAT IMMIGRANTS MIGHT SEE CAPITALISM AS A WAY TO BECOME MORE PRODUCTIVE CITIZENS MAINSTREAM PRESUMABLY FREEMARKET ECONOMISTS SUCH AS GEORGE SALEM AT PRUDENTIAL BACHE AND LARRY KIMBELL AT UCLA ALSO DON'T HAVE MUCH USE FOR THE IMMIGRANTS OR THE OTHER NEW PLAYERS IN CALIFORNIA TO THEM CALIFORNIA'S PROSPECTS FOR A FULL RECOVERY ARE DIM SINCE WE'VE LOST SO MANY GOOD TAXPAYERSUPPORTED DEFENSE JOBS AND REPLACED FLEEING ANGLOS WITH UNDERCLASS IMMIGRANTS THESE FACTORS LED MR KIMBELL JUST A FEW MONTHS AGO TO PREDICT DOUBLEDIGIT UNEMPLOYMENT FOR MUCH OF 1994 IT NOW STANDS AT 86 AND TO TELL ONE BRITISH PAPER IF YOU WANT A JOB IN THIS DECADE LEAVE CALIFORNIA JUST RECENTLY TO THE HOSANNAS OF LOCAL MEDIA MR KIMBELL REVERSED COURSE AND ADMITTED WE MAY ACTUALLY BE HAVING A BIT OF RECOVERY THIS SUDDEN CHANGE OF HEART REFLECTED NOT SO MUCH A SUDDEN CHANGE OF FORTUNES SOME EVEN NOW CREDIT EARTHQUAKE AID BUT HOW LITTLE MAINSTREAM ECONOMISTS UNDERSTAND THE EMERGING DYNAMICS OF THE NEW ECONOMY WHICH IS INCREASINGLY DOMINATED BY SMALLER FLEXIBLE FIRMS AND THE SELFEMPLOYED RATHER THAN TRADITIONAL STABLE BUSINESSES THIS EXPLAINS IN LARGE PART WHY THE STATE OF CALIFORNIA HAS BEEN FORCED REPEATEDLY TO LOWER ITS ESTIMATE OF JOB LOSSES THE OLD ESTIMATE OF 870000 STILL USED IN THE SPEECHES OF POLITICIANS FROM BOTH PARTIES HAS NOW BEEN REVISED TO 600000 ESTIMATES BY ECONOMIST DAVID FRIEDMAN SUGGEST THAT A CONSISTENT UNDERCOUNT OF SELFEMPLOYED PEOPLE INCLUDING CONSULTANTS AND PARTNERS COULD MEAN THAT WELL IN EXCESS OF ONE MILLION GAINFULLY EMPLOYED PEOPLE HAVE NOT BEEN COUNTED IN THE STATE'S EMPLOYMENT STATISTICS MANY ECONOMISTS PARTICULARLY THOSE WHOSE CAREERS HAVE BEEN LARGELY SPENT IN THE PAY OF THE DEFENSE INDUSTRY AND UNIONS STILL ARE NOT PLEASED WITH THE INCIPIENT RECOVERY CLAIMING THAT THESE NEW POSITIONS ARE JUST LOUSY SERVICE JOBS YET IN CALIFORNIA SOME OF THE FASTEST GROWING CATEGORIES OF JOBS ARE IN FIELDS NOTABLY ENTERTAINMENT SOFTWARE AND BUSINESS SERVICES THAT OFTEN PAY AS WELL AS OR BETTER THAN MOST INDUSTRIAL POSITIONS AND WITHOUT A HUGE PUBLIC SUBSIDY ONE PROBLEM FOR THE ECONOMISTS POLITICIANS AND THE MEDIA LIES IN THE NEW ECONOMY'S EXTRAORDINARY DYNAMISM AND LACK OF STRUCTURE SUCH GROWING SECTORS AS ENTERTAINMENT CRAFTS WITH MORE THAN 3000 FIRMS IN THE LOS ANGELES AREA ALONE RESEMBLE NOTHING LESS THAN EVERSHIFTING COALITIONS OF SMALL TEAMS OF INDIVIDUAL ENTREPRENEURS WHO CONSISTENTLY RECREATE THEMSELVES FOR AN EVERCHANGING AND EXPANDING MARKETPLACE SIMILAR PATTERNS CAN BE SEEN IN THE SOFTWARE INTERNATIONAL TRADE AND OTHER GROWTH SECTORS THE INCREASING ROLE OF IMMIGRANTS WITH THEIR TRADITIONAL SUSPICION TOWARD GOVERNMENT TENDS TO MAKE THESE HARDTOCOUNT SECTORS EVEN LESS QUANTIFIABLE IN AREAS LIKE ORANGE COUNTY'S LITTLE SAIGON THE OFFICIAL ECONOMY APPEARS BARELY ABOVE THE POVERTY LEVEL YET THE STOREFRONTS ALONG BOLSA AVENUE HAVE OCCUPANCY RATES WELL ABOVE THOSE IN MANY ANGLO NEIGHBORHOODS WHOLE INDUSTRIES FROM ELECTRONIC ASSEMBLY TO FOOD PROCESSING AND GARMENTS TEND TO BE FAMILY AFFAIRS AND LARGELY HIDDEN FROM THE TAX COLLECTORS TODAY ONLY A FEW ARE FEELING COMFORTABLE ENOUGH TO FULLY ENTER THE OFFICIAL ECONOMY SUCH NEW ECONOMIC ACTORS RARELY APPEAR ON THE STAGE OF CLINTONSTYLE SUMMITS OR USE PUBLIC RELATIONS AGENTS TO MANIPULATE THE PRESS THEIR ACTIVITIES OFTEN TAKE YEARS TO HAVE AN IMPACT ON ECONOMISTS' COMPUTER MODELS AND THEIR NEEDS NOW RARELY INTRUDE ON THE THINKING OF POLICY MAKERS LET US HOPE THAT BY THE TIME THEY DO CALIFORNIA'S RECOVERY IS SO FAR ADVANCED THAT THE POLITICAL CLASS WILL HAVE THE DECENCY TO LET WELL ENOUGH ALONE MR KOTKIN IS A FELLOW WITH THE CENTER FOR THE NEW WEST AND THE AUTHOR OF TRIBES RANDOM HOUSE PAPERBACK 9404220088 940422 FANCY FOOTWORK BANKERS TRUST THRIVES PITCHING DERIVATIVES BUT CLIMATE IS SHIFTING LOSSES BY CLIENTS LIKE P&G MAY CRIMP PLAN TO MOVE TO RELATIONSHIP BANKING SOME INTENSE PRESSURE TO SELL BY WALL STREET JOURNAL STAFF REPORTERS STEVEN LIPIN BARBARA DONNELLY GRANITO AND LESLIE SCISM THE FOLKS AT BANKERS TRUST NEW YORK CORP HAVEN'T BEEN BANKERS IN THE CLASSIC SENSE FOR YEARS AND NOW SOME CORPORATE EXECUTIVES ARE BEGINNING TO WONDER HOW MUCH THEY CAN TRUST THEM IN JUST TWO WEEKS THREE COMPANIES THAT BOUGHT SOPHISTICATED FINANCIALDERIVATIVE PRODUCTS FROM BANKERS TRUST HAVE HAD TO REPORT BIG WRITEOFFS AS THOSE INVESTMENTS WERE TORPEDOED BY RISING INTEREST RATES TWO PROCTER & GAMBLE CO AND GIBSON GREETINGS INC HAVE TAKEN THE RARE STEP OF PUBLICLY CRITICIZING THEIR BANKER THE THIRD MEAD CORP IS TAKING ITS LUMPS QUIETLY FOR NOW IT ISN'T YET CLEAR WHETHER THE CORPORATE EXECUTIVES INVOLVED WERE WILLINGLY TAKING BIG RISKS TO EARN BIG REWARDS WERE INDUCED BY BANKERS TRUST SALESPEOPLE TO BUY PRODUCTS THEY DIDN'T FULLY UNDERSTANDOR A LITTLE OF EACH WHAT IS CLEAR FROM INTERVIEWS WITH FORMER BANKERS TRUST EXECUTIVES AND WITH CORPORATE TREASURERS AND OTHER FINANCIAL OFFICIALS IS THAT BANKERS TRUST HAS BEEN UNUSUALLY AGGRESSIVE IN SELLING THE PRODUCTS AS WELL AS IN USING THEM TO ITS OWN ADVANTAGE EVEN IF THIS TURNED OUT TO BE AT THE EXPENSE OF ITS CLIENTS PEOPLE CLOSE TO THE BANK SAY THAT ITS TAKENOPRISONERS APPROACH HAS DRIVEN AWAY AT LEAST A DOZEN AMBITIOUS EMPLOYEES WHO GREW UNCOMFORTABLE WITH THAT STYLE IT'S A TOUGH CULTURE IF THEY FIND A WEAKNESS THEY'LL EXPLOIT IT SAYS A FORMER BANKERS TRUST OFFICIAL WHO LEFT TO RUN A DERIVATIVES OPERATIONS FOR A RIVAL BANK IF YOU LOOK AROUND AT THE STREET YOU FIND A LOT OF EXBANKERS TRUST PEOPLE SAYS J THOMAS ALLEN PRESIDENT OF ADVANCED INVESTMENT MANAGEMENT A PITTSBURGHBASED FIRM THAT MANAGES 35 BILLION THROUGH DERIVATIVES OF COURSE BANKERS TRUST ISN'T THE ONLY BIG INVESTMENT FIRM PEDDLING SOPHISTICATED DERIVATIVE PRODUCTS TO CORPORATE AMERICA IN A RECENT REGULATORY FILING DELL COMPUTER CORP SAID IT SUFFERED A 500000 PAPER LOSS ON A DERIVATIVE TRANSACTION THE COMPANY SAYS BANKERS TRUST WASN'T INVOLVED DELL ALSO WARNS THAT IT COULD TAKE FURTHER PAPER LOSSES ON DERIVATIVES DURING ITS CURRENT FIRST FISCAL QUARTER ENDING MAY 1 LOSSES THAT SOME ANALYSTS PROJECT AT BETWEEN 5 MILLION AND 15 MILLION IN ADDITION SENIOR CONSULTANTS AT BIG ACCOUNTING FIRMS WARN THAT SOME OF THEIR OTHER CORPORATE CLIENTS SOON WILL BE REPORTING DERIVATIVESRELATED LOSSES TOO THE RESULT OF PRODUCTS SOLD BY SOME OF BANKERS TRUST'S BIGGEST RIVALS BUT BANKERS TRUST IS FAR MORE DEPENDENT UPON THE SALE AND TRADING OF DERIVATIVE PRODUCTS THAN ANY OTHER US FINANCIAL INSTITUTION OVER THE PAST DECADE IT HAS BECOME A DERIVATIVES JUGGERNAUT CONSTANTLY STRIVING TO CREATE SOPHISTICATED NEW PRODUCTS ON WHICH IT CAN EARN BIG FEES OR TRADING PROFITS LAST YEAR 31 OF ITS BOTTOM LINE WAS THE RESULT OF SELLING RISKMANAGEMENT PRODUCTS WHILE A HEFTY 56 CAME FROM TRADING FOR ITS OWN ACCOUNT AND IN THE FIRST QUARTER OF 1994 PROFIT FROM THE SALE OF DERIVATIVES TO CLIENTS CLIMBED TO 114 MILLION ACCOUNTING FOR 70 OF EARNINGS THE BANK'S ABILITY TO STAY ON THE CUTTING EDGE OF FINANCIAL INNOVATION EARNS IT THE HIGHEST ACCOLADES FROM SOME FINANCIAL EXECUTIVES THEY'RE EXTREMELY INNOVATIVE AND EXTREMELY AGGRESSIVE SAYS MICHAEL FLAGG FORMER TREASURER OF AM INTERNATIONAL YOU COULD SIT DOWN WITH THEM AND SAY I WANT TO HEDGE A RISK OF HAVING TOO MANY BLUE GIRAFFES' AND THEY WOULD BE ABLE TO HELP YOU DO THAT BANKERS TRUST OFFICIALS SAY THAT THE BLOWUPS AT THREE COMPANIES THAT BOUGHT PRODUCTS FROM BANKERS TRUST ARE ISOLATED INCIDENTS THAT DON'T REFLECT THE VAST MAJORITY OF CLIENTS THAT USE DERIVATIVES DOUG KIDD A MANAGING DIRECTOR AT BANKERS TRUST SAYS WE BELIEVE WE'VE ACTED COMPLETELY ETHICALLY HONESTLY AND WITH THE HIGHEST STANDARDS OF PROFESSIONALISM STILL THE CLIENTS' WELLPUBLICIZED LOSSES AND THE LIKELIHOOD THAT MORE WILL BE FORTHCOMING THREATEN AT THE VERY LEAST TO UNDERMINE BANKERS TRUST'S EFFORTS TO REBUILD THE CORPORATE RELATIONSHIPS IT ABANDONED YEARS AGO WE BELIEVE THERE WILL BE A SLOWDOWN AS CLIENT POLICIES TIGHTEN TIMOTHY YATES THE BANK'S CHIEF FINANCIAL OFFICER SAID EARLIER THIS WEEK BUT IN THE LONG TERM WE SEE THAT AS GOOD BEYOND THE IMMEDIATE EFFECTS ON BANKERS TRUST'S PROFITS AND REVENUE THE PROBLEMS THAT ARE CROPPING UP THREATEN TO SLOW THE GROWTH OF THE ENTIRE DERIVATIVES BUSINESS INCLUDING THE STANDARD RISKMANAGEMENT PRODUCTS ON WHICH MANY CORPORATIONS PENSION FUNDS AND EVEN CREDIT UNIONS ROUTINELY RELY WHAT'S MORE THE PROBLEMS OPEN NEW DOORS FOR NERVOUS REGULATORS AND AMBITIOUS LEGISLATORS WHO ALREADY ARE MOVING TO CRACK DOWN ON MORE EXOTIC DERIVATIVES AND THE PROPRIETARY TRADING OF FINANCIAL INSTRUMENTS BY US BANKS IT IS BAD FOR EVERYBODY SAYS AN EXECUTIVE AT ONE OF THE LEADING DEALERS BANKERS TRUST EXECUTIVES CONCLUDED AS EARLY AS 1979 THAT TRADITIONAL COMMERCIAL BANKING WAS A DYING BUSINESS FRAUGHT WITH TOO MANY COMPETITORS FIGHTING OVER A SHRINKING COMMERCIAL LOAN PIE LED BY ITS CHAIRMAN CHARLES SANFORD A FORMER BOND TRADER FROM GEORGIA BANKERS TRUST HAD THE VISION TO INVEST HEAVILY IN CAPITAL MARKETS WHEN SOME OTHER BANKS WERE TRYING TO BE ALL THINGS TO ALL PEOPLE IN EFFECT FINANCIAL SUPERMARKETS TODAY THAT EARLY THRUST INTO THE WORLD OF DERIVATIVES SEEMS ESPECIALLY PRESCIENT AS COMPETITORS HAVE HAD TO SCRAMBLE TO CATCH UP BANKERS TRUST'S STRENGTH AS A FINANCIAL INNOVATOR LIES IN ITS ABILITY TO ATTRACT THE BEST AND BRIGHTEST AMONG THE MATHEMATICS WIZARDS COMING OUT OF TOP SCHOOLS LIKE MASSACHUSETTS INSTITUTE OF TECHNOLOGY AND THE WHARTON SCHOOL AT UNIVERSITY OF PENNSYLVANIA THOSE ROCKET SCIENTISTS ARE PUT TO WORK DEVISING FORMULAS FOR CREATING CUSTOMIZED SWAPS AND COMPLEX OPTION PRODUCTS IN THEIR SIMPLEST AND SAFEST USE SWAPS AND OPTIONS GIVE BUYERS FINANCIAL PROTECTION AGAINST ADVERSE MOVES IN SUCH THINGS AS INTEREST RATES OR FOREIGN CURRENCIES FOR EXAMPLE BERTELSMANN INC THE US SUBSIDIARY OF THE GERMAN MEDIA GIANT LAST YEAR PURCHASED AN INTERESTRATE OPTION CALLED A CAP THAT IN EFFECT SET A CEILING ON THE COST OF FINANCING THE 119 MILLION PURCHASE OF A BUILDING IN NEW YORK IF INTEREST RATES RISE ABOVE A CERTAIN LEVEL THE COMPANY'S FINANCING NEEDS BECOME FIXED AT A SET RATE WE WANTED PEACE OF MIND SAYS BASIL MAVROVITIS BERTELSMANN'S TREASURER BUT THOSE KINDS OF DEALS CARRY SCANT PROFITS FOR THE BANKS AND SECURITIES FIRMS THAT SELL THEM ALTHOUGH BANKERS TRUST DOES PLENTY OF THIS WORK ITS REAL EXPERTISE LIES IN THE AREA OF EXOTIC PRODUCTS SUCH AS LEVERAGED SWAPS THESE PRODUCTS DIFFER FROM PLAINVANILLA DERIVATIVES IN THAT THEY ALLOW THE BUYER TO MAKE VERY SPECIFIC BETS ON THINGS LIKE THE DIFFERENCE BETWEEN SHORTTERM AND LONGTERM INTEREST RATES THE TROUBLE IS THEY ARE A PARTICULARLY VOLATILE FORM OF DERIVATIVE AND THE RETURNS OR LOSSES IF THE BET IS WRONG ARE GREATLY MAGNIFIED THE APPEAL OF SUCH EXOTIC INSTRUMENTS TO BANKERS TRUST IS THAT IT TAKES A CERTAIN AMOUNT OF EXPERTISE TO CRAFT THEM SO NOT EVERY FINANCIAL FIRM CAN COMPETE FURTHER THEY TEND TO BE MUCH MORE PROFITABLE FOR EXAMPLE THE PROFIT FOR THE SELLER ON A TYPICAL LEVERAGED SWAP RUNS ABOUT EIGHT TIMES THE LEVEL OF A TRADITIONAL INTERESTRATE SWAP THE MORE COMPLEX AND CUSTOMIZED THE PRODUCT BECOMES THE HIGHER THE FEES THE BANK CAN COMMAND EVERY BANK OF ANY SIZE WANTS TO SELL EXOTIC DERIVATIVES TO A CORPORATION SAYS CHRISTOPHER SAILER TREASURER OF BROWNFORMAN CORP A LOUISVILLE KY DISTILLER THEY BASICALLY WILL PROMOTE IT WITH WHATEVER REASONING A TREASURER WILL ACCEPT THEY'RE THERE TO GENERATE TRANSACTION FEES AND THE WAY TO DO IT IS THROUGH SALES HE SAYS THAT BROWNFORMAN HASN'T DONE DERIVATIVES BUSINESS WITH BANKERS TRUST AND DOESN'T USE LEVERAGED SWAPS BANKERS TRUST'S TIGHT FOCUS ON DERIVATIVES DURING THE LAST DECADE MADE IT THE LEADER IN THE FIELD BUT THAT CAME AT THE EXPENSE OF THE KIND OF BROADBASED INVESTMENTBANKING BUSINESS THAT FIRMS LIKE JP MORGAN & CO AND GOLDMAN SACHS & CO ARE KNOWN FOR NOT ONLY DOES THE BROADER BUSINESS PROVIDE A DIVERSIFIED STREAM OF EARNINGS IT ALSO ENCOURAGES DEEP RELATIONS BETWEEN THE FIRMS AND THEIR CLIENTS THE LACK OF THOSE RELATIONSHIPS IS SOMETHING THAT BANKERS TRUST SET OUT TO REMEDY IN THE PAST COUPLE OF YEARS BUT THE LATEST IMBROGLIO SUGGESTS THAT IT MAY HAVE A HARD TIME ACHIEVING THIS GOAL IF WE START TO SEE THINGS OF THIS MAGNITUDE WITH MORE REGULARITY IT WOULD BE WORRISOME BECAUSE ONE MAJOR STRATEGIC INITIATIVE WAS TO REBUILD THEIR CORPORATECUSTOMER BASE SAYS JUDAH KRAUSHAAR BANKING ANALYST AT MERRILL LYNCH & CO A MAJOR LEG OF THEIR STRATEGY COULD BE IN JEOPARDY HE AND OTHERS ARGUE THAT THE BANK'S STRATEGY IS TO USE ITS DERIVATIVES BUSINESS AS A LEVER INTO THE REST OF THE CLIENTCOMPANY'S FINANCIAL NEEDS DERIVATIVES AND RISK MANAGEMENT ARE THEIR COMPETITIVE ADVANTAGES SAYS MR KRAUSHAAR THEY STILL HAVE A LONG WAY TO GO TO CATCH UP WITH OTHER LARGE COMMERCIAL BANKS IN TERMS OF DEPTHS OF RELATIONSHIPS BUT I WOULD STOP WAY SHORT OF CONCLUDING THAT IT SUFFERED AN IRREVERSIBLE SETBACK BUT OTHER MAJOR BANKS AREN'T LOSING ANY TIME IN TAKING ADVANTAGE OF BANKERS TRUST'S WOES SOME NEW YORK BANKS AND SECURITIES FIRMS ARE SENDING OUT LETTERS TO THEIR CORPORATE CLIENTS SAYING THEY DON'T SELL LEVERAGED SWAPS TO CORPORATIONS I THINK BANKERS WILL PROBABLY SEE SOME EROSION SAYS RAPHAEL SOIFER BANKING ANALYST AT BROWN BROTHERS HARRIMAN & CO BANKERS TRUST MIGHT BE MORE VULNERABLE THAN SOME OF THE OTHER BANKS BECAUSE THEY DON'T HAVE AS MANY DEEP BANKING RELATIONSHIPS AS SAY JP MORGAN DOES HE ADDS HOWEVER THAT HE BELIEVES CORPORATE TREASURERS WILL BE REVIEWING THEIR FINANCIAL RELATIONSHIPS WITH ALL DEALERS IN LIGHT OF THE EVENTS OF THE PAST FEW WEEKS FORMER BANKERS TRUST EXECUTIVES SUGGEST THAT THE BIG BANK'S INTERNAL CULTURE HAS CONTRIBUTED TO ITS LACK OF STRONG CLIENT RELATIONSHIPS THE HARDNOSED TRADING CULTURE THAT DEVELOPED OVER THE PAST DECADE AT BANKERS TRUST WAS GEARED TO EXPLOITING SHORTTERM MARKET OPPORTUNITIES AS THEY AROSE THAT MARKET SAVVY AND APPETITE FOR RISK WORK HEAVILY IN BANKERS TRUST'S FAVOR WHEN IT COMES TO MAKING DECISIONS ABOUT ITS OWN PROFITS OR THOSE OF CLIENTS KNOWLEDGE IS POWER SAYS MR ALLEN OF ADVANCED INVESTMENT MANAGEMENT THESE GUYS SEE THE WHOLE MARKET MINUTE BY MINUTE BECAUSE THEY HAVE ALL THAT INFORMATION AND ACT AS PRINCIPALS ON BOTH SIDES OF TRADES INVOLVING THEIR PRODUCTS BANKERS TRUST ALONG WITH CERTAIN OTHER INVESTMENT BANKERS IS SOMETIMES ABLE TO OVERCHARGE HE CONTENDS THE COMBINATION OF EXPERTISE AND SALES PRESSURE MAY HAVE LED BANKERS TRUST TO PUSH TOO AGGRESSIVELY TO SELL PRODUCTS THAT WEREN'T SUITABLE FOR ITS CLIENTS CERTAINLY THAT IS WHAT GIBSON GREETINGS AND P&G ARE CLAIMING AFTER THE RECENT SPIKE UPWARD IN INTEREST RATES WRECKED THEIR BETS THAT RATES WERE HEADING LOWER IT IS CLEAR THAT THE COMPANY SHOULD NEVER HAVE BEEN PUT IN A POSITION LIKE THIS AS WE RELIED ON BANKERS TRUST TO ADVISE US ON THESE TRANSACTIONS ASSERTED GIBSON CHAIRMAN BENJAMIN SOTTILE IN A PREPARED STATEMENT EARLIER THIS WEEK BUT BANKERS TRUST INSIDERS NOTE THAT CLIENTS WHO IN THE PAST EARNED FAT RETURNS FROM SUCCESSFUL BETS DIDN'T COMPLAIN ABOUT THE SIZE OF THEIR PROFITS THEY AND OTHER DEALERS CRITICIZE CORPORATIONS FOR SOMETIMES USING DERIVATIVES TO SPECULATE ON INTERESTRATE MOVES RATHER THAN SIMPLY LOCKING IN LOWCOST LONGTERM FINANCING THUS SOME KNOWLEDGEABLE CLIENTS SAY IT ISN'T BANKERS TRUST'S FAULT IF COMPANIES USING ITS PRODUCTS GOT INTO TROUBLE I DO THINK BANKERS TRUST HAS BEEN MORE INNOVATIVE THAN OTHER FIRMS SAYS STUART REESE SENIOR VICE PRESIDENT OF MASSACHUSETTS MUTUAL LIFE INSURANCE CO IN SPRINGFIELD BUT INNOVATION ISN'T BAD UNLESS YOU DON'T UNDERSTAND IT THEIR INNOVATION GIVES US MORE FLEXIBILITY TO DO WHAT WE WANT TO DO BESIDES ADDS WAYNE WICKER DIRECTOR OF EMPLOYEEBENEFIT INVESTMENTS AT DAYTON HUDSON CORP NOBODY IS MAKING CORPORATE FINANCE EXECUTIVES BUY ANYTHING WE REJECT NINE OUT OF EVERY 10 IDEAS THAT ARE BROUGHT TO US HE SAYS IF I HAVE A DIFFICULT TIME UNDERSTANDING THE TRADE WE PROBABLY WILL TEND TO BACK OFF BUT HE SAYS HE HAS BEEN SATISFIED WITH THE TWO BIG TRADES HIS COMPANY HAS DONE WITH BANKERS TRUST HOWEVER THE PRESSURE ON BANKERS TRUST SALESPEOPLE TO SELL THE PRODUCTS HAS BEEN INTENSE THE BUSINESS OF SELLING DERIVATIVES TO CORPORATIONS IS HEADED BY JOHN LAVIN A TOUGH CONTROLORIENTED EXECUTIVE AND A VETERAN OF THE BUSINESS SEVERAL FORMER EMPLOYEES SAY THEY QUIT BANKERS TRUST OVER THE PAST 12 MONTHS IN PART BECAUSE OF RISING DISCOMFORT WITH THE PRODUCTS THEY WERE ENCOURAGED TO PRESS ON CORPORATE CUSTOMERS THE FORMER SALESPEOPLE SAY THAT WHILE THERE WAS FULL DISCLOSURE ABOUT THE TERMS OF THE TRANSACTIONS THEY WERE SELLING THEY WERE ENCOURAGED TO SOFTPEDAL THE LIKELIHOOD THAT THE PRODUCTS COULD BACKFIRE CLIENTS WERE LULLED INTO A FALSE SENSE OF SECURITY ASSERTS ONE PERSON WHO WORKED FOR MR LAVIN MR KIDD OF BANKERS TRUST RESPONDS THAT THOSE ACCUSATIONS ARE TOTALLY FALSE AND THE INDIVIDUALS WHO MADE THEM HAVE ACTED WITH A RECKLESS DISREGARD FOR THE TRUTH I CAN ONLY SPECULATE THAT THEY DID SO TO FURTHER SOME PERSONAL OR COMPETITIVE VENDETTA AGAINST JACK LAVIN OR BANKERS TRUST 9404220087 940422 IBM BOUNCED BACK STRONGLY IN FIRST QUARTER RESPECTABLE PROFIT AND GAIN IN REVENUE SURPRISES ANALYSTS STOCK CLIMBS BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INTERNATIONAL BUSINESS MACHINES CORP REPORTED A STRONG REBOUND IN FIRSTQUARTER RESULTS SURPRISING WALL STREET WITH AN UNEXPECTED 6 RISE IN REVENUE FROM CONTINUING OPERATIONS AND WITH A RESPECTABLE PROFIT FUELED BY AGGRESSIVE COSTCUTTING IBM SHARES SURGED 6125 OR 12 TO CLOSE AT 58375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AS BUOYANT ANALYSTS HAILED THE RESULTS IBM CHIEF FINANCIAL OFFICER JEROME YORK MOREOVER SAID THE US ECONOMY IS PICKING UP AND SCALED BACK HIS PESSIMISTIC PROJECTION THAT THE COMPANY'S CRUCIAL MAINFRAME REVENUE WOULD FALL 50 THIS YEAR MAINFRAME SALES FELL 12 IN THE QUARTER AND WILL BE DOWN BY ABOUT THE SAME RATE IN THE SECOND PERIOD STILL MANY CHALLENGES LIE AHEAD FOR BIG BLUE AS IT ENTERS WHAT SOME OBSERVERS DEEM AS THE SECOND PHASE OF ITS TURNAROUND EFFORT ITS REBOUND SO FAR OWES MORE TO COSTCUTTING THAN ACTUAL SALES GROWTH THE COMPANY MUST STEER THROUGH SOME CRITICAL AND DIFFICULT PRODUCT TRANSITIONS THIS YEAR IN HIGHEND PRODUCTS AS A NEW MAINFRAME SERIES MOVES TO LESS COSTLY VERSIONS AND THE AS/400 MIDRANGE COMPUTER SWITCHES OVER TO IBM'S NEW POWERPC CHIP IBM WILL HAVE TO WORK HARD TO MAINTAIN REVENUE MR YORK REMAINS CAUTIOUS TELLING ANALYSTS AT A BRIEFING HERE THAT MOST OF IBM'S BUSINESSES STILL AREN'T TURNING IN ACCEPTABLE PERFORMANCES AND THAT MUCH WORK LIES AHEAD HE CITED ONLY THE MIDRANGE LINE AS HAVING ACCEPTABLE RETURNS HE SAID RESULTS ARE GOOD IN THE CONTEXT OF RECENT HISTORY BUT 300 MILLION IN PROFITS ON 13 BILLION IN REVENUE ISN'T MUCH TO WRITE HOME ABOUT IN AN INTERVIEW MR YORK ADDED THAT WHILE HE IS VERY PLEASED WITH THE PROGRESS HE REMAINS CONCERNED ABOUT FORMIDABLE COMPETITORS IN THE INDUSTRY IN PREVIOUS YEARS REVENUE GROWTH OF 6 IS WHAT IBM DID IN A LOUSY QUARTER HE SAID FIRSTQUARTER NET INCOME WAS 392 MILLION OR 64 CENTS A SHARE BOUNCING BACK FROM A YEAREARLIER LOSS OF 399 MILLION OR 70 CENTS A SHARE THE 1994 RESULTS INCLUDE A GAIN OF 248 MILLION OR 43 CENTS A SHARE ON THE SALE OF IBM'S FEDERAL SYSTEMS DIVISION BUT ALSO INCLUDE A ONETIME CHARGE OF 192 MILLION OR 33 CENTS A SHARE TO WRITE OFF SOFTWARE COSTS THE YEARBEFORE LOSS INCLUDED A ONETIME CHARGE OF 114 MILLION OR 20 CENTS A SHARE EXCLUDING ONETIME EVENTS IBM'S FIRSTQUARTER OPERATING PROFIT OF 336 MILLION OR 54 CENTS A SHARE MARKED A SHARP TURNAROUND FROM A YEAREARLIER OPERATING LOSS OF 300 MILLION REVENUE ROSE 25 TO 1337 BILLION FROM 1305 BILLION AND GREW A HEALTHIER 6 AFTER TAKING OUT THE YEAREARLIER CONTRIBUTION OF THE NOWSOLD FEDERAL SYSTEMS DIVISION THE KEY FACTOR IN IMPROVING PROFITS HOWEVER WAS MR YORK'S RADICAL COSTCUTTING PROGRAM COSTS IN THE FIRST QUARTER DECLINED 16 OR ALMOST 1 BILLION FROM A YEAR EARLIER MOST OF THE SAVINGS CAME FROM SITE CLOSINGS AND FROM EMPLOYEE CUTBACKS WHICH INCLUDED 10000 WORKERS WHO LEFT AS PART OF THE SALE OF THE FEDERAL SYSTEMS DIVISION MR YORK SAID HE STILL PLANS ON TRIMMING AT LEAST 2 BILLION MORE FROM THE COST STRUCTURE BY THE END OF THE YEAR AND MAY EXCEED THAT TARGET HIS EFFORTS ARE CONCENTRATED NOW ON STREAMLINING AND REDUCING SUCH FACTORS AS IBM'S BLOATED INVENTORY OF 8 BILLION WHILE THE FIRSTQUARTER EARNINGS WERE STILL A LONG WAY FROM IBM'S PEAK PROFITS IN THE BILLIONDOLLAR RANGE IN THE MID1980S WALL STREET ANALYSTS WERE ENTHUSIASTIC DANIEL MANDRESH OF MERRILL LYNCH WHO HAD THE HIGH ESTIMATE ON THE STREET OF 18 CENTS A SHARE BEFORE THE EARNINGS REPORT SAID THERE'S NO WAY ANYBODY COULD HAVE PREDICTED THAT IBM WOULD HAVE GOTTEN ITS ACT TOGETHER SO FAST THE KEY THING IS THE DIRECTION IS RIGHT SAID STEVEN MILUNOVICH OF MORGAN STANLEY WHO UPGRADED HIS RECOMMENDATION TO A BUY FROM A HOLD BUT HE ADDED MY CONFIDENCE IN THE FIRST PHASE OF IBM'S TURNAROUND MISSION IS NOW HIGH MY CONFIDENCE IN THE SECOND PHASE WHEN IBM MUST DEMONSTRATE CONSISTENT GROWTH AND A STRATEGY THAT SETS IT APART ISN'T THERE YET IN ADDITION THE COMPUTER INDUSTRY HAS BECOME SO COSTCOMPETITIVE THAT PRICING IS HARD TO FORECAST IBM ALSO HAS THE DISADVANTAGE DESPITE ALL THE COSTCUTTING OF CARRYING SIGNIFICANTLY MORE OVERHEAD THAN SUCH COMPETITORS AS COMPAQ COMPUTER CORP IN FACT IBM'S PERSONALCOMPUTER BUSINESS A BRIGHT SPOT MAY BE LOSING GROUND TO COMPAQ COMPAQ'S SHIPMENTS IN THE FIRST QUARTER WERE UP 30 TO 40 AND WERE NO 1 IN THE INDUSTRY WHILE IBM'S LAGGED BEHIND AT 6 GROWTH SAID RICHARD ZWETCHKENBAUM OF INTERNATIONAL DATA CORP IBM'S MR YORK HOWEVER SAID THE COMPANY IN THE FIRST QUARTER HAD SUBSTANTIAL INCREASES IN REVENUES FROM PCS AND WORKSTATIONS PRIMARILY THE RS/6000 THE AS/400 MIDRANGE LINE HAD ONLY SINGLEDIGIT GROWTH HOWEVER AND IBM SAW ONLY SLIGHT GROWTH IN SOFTWARE REVENUE OVERALL PRODUCT SALES GREW 9 FROM THE YEAR BEFORE HE SAID US REVENUE WERE UP 6 AND IN EUROPE WHERE PROSPECTS FOR A RECOVERY AREN'T CLEAR SALES ROSE 3 MR YORK SAID ASIAN REVENUE INCREASED 13 IN REVISING HIS VIEW OF MAINFRAMES TO A LESS BLEAK OUTLOOK MR YORK SAID WE'LL DO BETTER THAN WHAT WE SAID EARLIER THIS YEAR WHEN HE HAD FORECAST A 50 DECLINE HE SPECULATED THAT BIG CUSTOMERS ARE CONTINUING TO INVEST IN MAINFRAMES AND THAT THERE'S A REALIZATION NOW THAT THEY ARE A NECESSARY PART OF LARGECOMPANY COMPUTING 9404220086 940422 BUSINESS BRIEF CHEYENNE SOFTWARE INC FISCAL THIRDQUARTER PROFIT ROSE 82 SHARES REBOUND CHEYENNE SOFTWARE INC'S SHARES REBOUNDED 13 ON NEWS OF HIGHER EARNINGS AS THE COMPANY ANNOUNCED ITS CHAIRMAN WOULD STEP DOWN SHARES OF THE ROSLYN HEIGHTS NY DEVELOPER OF AUTOMATEDSOFTWARE SOLUTIONS CLOSED UP 3 AT 2575 ON THE AMERICAN STOCK EXCHANGE AFTER THE COMPANY SAID FISCAL THIRDQUARTER NET ROSE 82 TO 103 MILLION OR 26 CENTS A SHARE FROM 56 MILLION OR 14 CENTS A SHARE A YEAR AGO REVENUE ROSE 92 TO 271 MILLION FOR THE QUARTER ENDED MARCH 31 THE STOCK HAD BEEN VOLATILE AFTER THE CNBC CABLETELEVISION NETWORK REPORTED CONCERNS ABOUT ITS PRICE THE COMPANY'S PRODUCTS AND SELLING BY CORPORATE INSIDERS THE COMPANY DENIED THAT A MANAGEMENT SHAKEUP WAS IMMINENT 9404220085 940422 BUSINESS BRIEF SILICON GRAPHICS INC THIRDQUARTER PROFIT JUMPS 73 ON 39 RISE IN REVENUE SILICON GRAPHICS INC CITING GROWING MARKET SHARE IN ITS CORE WORKSTATION BUSINESS SAID FISCAL THIRDQUARTER NET INCOME SURGED 73 ON A 39 GAIN IN REVENUE NET FOR THE PERIOD ENDED MARCH 31 WAS 351 MILLION OR 23 CENTS A SHARE COMPARED WITH 202 MILLIION OR 14 CENTS A SHARE A YEAR EARLIER A CONSENSUS OF ANALYSTS' ESTIMATES PUT EARNINGS AT 20 CENTS A SHARE REVENUE WAS 3763 MILLION UP FROM 2707 MILLION SHARES OF SILICON GRAPHICS ROSE 1875 OR 87 TO 23375 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE MOUNTAIN VIEW CALIF CONCERN DIDN'T ELABORATE ON MARKETSHARE FIGURES LAST YEAR IT SHIPPED 65 OF THE INDUSTRY'S 602000 WORKSTATIONS UP FROM 49 OF 558000 WORKSTATIONS A YEAR EARLIER ACCORDING TO INTERNATIONAL DATA CORP THE MARKET LEADER SUN MICROSYSTEMS INC HAD 397 OF WORKSTATION SHIPMENTS LAST YEAR FOLLOWED BY HEWLETTPACKARD CO WITH 201 DIGITAL EQUIPMENT CORP WITH 108 AND INTERNATIONAL BUSINESS MACHINES CORP WITH 83 9404220084 940422 BUSINESS BRIEF ITOYOKADO CO SUPERMARKET CONCERN POSTS 26 RISE IN PRETAX PROFIT ITOYOKADO CO A LEADING JAPANESE SUPERMARKET OPERATOR SAID ITS CONSOLIDATED OR GROUP PRETAX PROFIT FOR THE FISCAL YEAR ENDED FEB 28 ROSE 26 FROM THE PREVIOUS FISCAL YEAR ITOYOKADO POSTED CONSOLIDATED PRETAX PROFIT OF 18578 BILLION YEN 18 BILLION COMPARED WITH 18112 BILLION YEN LAST YEAR SALES FELL 5 TO 2884 TRILLION YEN FOR THE FISCAL YEAR ENDING FEB 28 1995 THE COMPANY EXPECTS ITS CONSOLIDATED PRETAX PROFIT TO RISE 10 FROM THE LATEST RESULTS ITOYOKADO OFFICIALS SAID THE BULLISH OUTLOOK REFLECTS IMPROVEMENT BY SOUTHLAND CORP WHICH IS 65OWNED BY ITOYOKADO DURING THE LATEST REPORTING PERIOD HOWEVER GROUP SALES FELL SHORT OF THEIR YEAREARLIER LEVEL AS ITOYOKADO SHUT DOWN 371 UNPROFITABLE SOUTHLAND 7ELEVEN STORES TO BRING THE TOTAL NUMBER DOWN TO 5796 THE COMPANY HAD OPERATING PROFIT OF 294 BILLION YEN FROM ITS NORTH AMERICAN BUSINESSES SWINGING FROM AN OPERATING LOSS OF 187 BILLION YEN A YEAR EARLIER 9404220083 940422 TELEDYNE TO PAY 1125 MILLION TO SETTLE SUITS ACCORD APPEARS TO RESOLVE TWO US FRAUD CASES FIRSTPERIOD CHARGE SET BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES TELEDYNE INC AGREED TO PAY A TOTAL OF 1125 MILLION TO RESOLVE TWO LONGSTANDING WHISTLEBLOWER SUITS ALLEGING FRAUD AND IMPROPER TESTING OF ELECTRONIC PARTS IT SOLD TO THE PENTAGON THROUGH THE 1980S THE TENTATIVE AGREEMENT WHICH HAD BEEN EXPECTED FOR MONTHS BUT REMAINS SUBJECT TO FINAL COURT APPROVAL WILL TURN OUT TO BE AMONG THE HANDFUL OF LARGEST CIVIL FRAUD SETTLEMENTS INVOLVING MILITARY CONTRACTORS DESPITE THE CONSIDERABLE FINANCIAL DRAIN ON TELEDYNE IN MANY WAYS YESTERDAY'S ANNOUNCEMENT REPRESENTED RELATIVELY GOOD NEWS FOR THE COMPANY SETTLEMENT DISCUSSIONS FOR EXAMPLE HAVE INVOLVED AMOUNTS SIGNIFICANTLY LARGER THAN 112 MILLION THE COMPANY ALSO MANAGED TO AVOID THE RISKS AND POTENTIAL EMBARRASSMENT OF GOING TO TRIAL THE AGREEMENT MARKED THE CULMINATION OF A CONCERTED EFFORT BY TELEDYNE TO RESOLVE NAGGING LEGAL CLAIMS THAT HAVE DIVERTED MANAGEMENT'S ATTENTION DRAINED RESOURCES AND CLOUDED THE FIRM'S FUTURE FOR THE PAST FEW YEARS TELEDYNE PREVIOUSLY PLEADED GUILTY TO MAKING FALSE STATEMENTS TO THE PENTAGON AND PAID 175 MILLION TO SETTLE RELATED CRIMINAL CHARGES THE SETTLEMENT ANNOUNCEMENT CAME AFTER THE CLOSE OF REGULAR TRADING IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY TELEDYNE SHARES FELL 625 CENTS OR 4 TO 14375 THE LOS ANGELESBASED MAKER OF DEFENSE ELECTRONICS CONSUMER PRODUCTS AND SPECIALTY METALS TOOK A CHARGE FOR THE FULL AMOUNT OF THE PROPOSED SETTLEMENT AGAINST EARNINGS FOR THE FIRST QUARTER THOUGH THE AGREEMENT CALLS FOR SOME OF THE PAYMENTS TO BE STRETCHED OUT OVER THE NEXT YEAR FOR THE QUARTER ENDED MARCH 31 TELEDYNE REPORTED A LOSS OF 551 MILLION OR 99 CENTS A SHARE COMPARED WITH A LOSS OF 1555 MILLION OR 281 CENTS A SHARE IN THE YEARAGO PERIOD DONALD RICE THE COMPANY'S PRESIDENT AND CHIEF OPERATING OFFICER CALLED THE AGREEMENT AN IMPORTANT MILESTONE WHICH CERTAINLY OUGHT TO ALLOW US TO FOCUS MORE ATTENTION ON RUNNING THE BUSINESS SINCE 1989 TELEDYNE HAS BEEN THE FOCUS OF NO FEWER THAN EIGHT SEPARATE FEDERAL CRIMINAL INVESTIGATIONS AND AT LEAST THAT MANY CIVIL PROBES AS PREVIOUSLY REPORTED THE JUSTICE DEPARTMENT HAD JOINED BOTH OF THE WHISTLEBLOWER SUITS THAT WERE RESOLVED YESTERDAY AS PART OF THE SETTLEMENT PACKAGE TELEDYNE AGREED TO PAY 275 MILLION TO SETTLE A 1989 CIVIL CASE ALLEGING THAT ITS SYSTEMS DIVISION KEPT A DOUBLE SET OF BOOKS AND PADDED COSTS ON GOVERNMENT CONTRACTS BY SHOWING FEDERAL AUDITORS PHONY FILES TELEDYNE ALSO AGREED TO PAY AN ADDITIONAL 85 MILLION TO SETTLE A 1990 SUIT THAT THE COMPANY'S RELAYS DIVISION FAILED TO PROPERLY TEST SWITCHES SOLD TO THE PENTAGON THREE MONTHS AGO WHEN TELEDYNE SUSPENDED ITS CASH DIVIDEND FOR THE FIRST TIME EVER THERE WAS SPECULATION THAT A SETTLEMENT WAS CLOSE IN FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION OVER THE YEARS THE COMPANY ASSERTED THAT IT DIDN'T HAVE RELIABLE ESTIMATES OF POTENTIAL DAMAGES AND THEREFORE WASN'T ABLE TO SET ASIDE FUNDS TO PAY ANTICIPATED SETTLEMENT COSTS 9404220082 940422 BUSINESS BRIEF GLENDALE FEDERAL BANK FIRM TO SELL FLORIDA SYSTEM IN BID TO FOCUS ON CALIFORNIA GLENDALE FEDERAL BANK MOVING TO FOCUS ITS BANKING EFFORTS CLOSER TO HOME SAID IT PLANS TO SELL ITS FLORIDA BRANCH SYSTEM FOR AN UNDISCLOSED AMOUNT THE GLENDALE CALIF SAVINGS AND LOAN WHICH HAS BEEN BATTLING FOR SEVERAL YEARS TO KEEP ITS CAPITAL ABOVE FEDERAL MINIMUM LEVELS SAID IT WANTED TO FOCUS ITS ENERGY ON TRYING TO BUILD VALUE THROUGH ITS RETAIL BANKING BUSINESS IN CALIFORNIA THE SALE IS EXPECTED TO BE COMPLETED BY THE END OF THE YEAR GLENDALE'S ONLY OTHER NONCALIFORNIA BUSINESS IS A THRIFT UNIT IN WASHINGTON STATE GLENDALE INDICATED PROCEEDS FROM THE SALE ARE EXPECTED TO BE AT AN UNDETERMINED AMOUNT BELOW THE FLORIDA SYSTEM'S OVERALL VALUE AS GOODWILL THE THRIFT SAID IT WILL WRITE OFF THE DIFFERENCE AGAINST THE FISCAL THIRD QUARTER ENDED MARCH 31 RESULTS OF THAT PERIOD ARE TO BE RELEASED IN THE SECOND WEEK OF MAY 9404220081 940422 BUSINESS BRIEF PIER 1 IMPORTS INC FIRM HAD LOSS IN QUARTER FOLLOWING A YEARAGO PROFIT PLANNED STORE CLOSINGS AND AFTERSHOCKS FROM THE DISPOSAL OF AN UNPROFITABLE SUBSIDIARY LAST YEAR DEPRESSED EARNINGS AT PIER 1 IMPORTS INC THE FORT WORTH TEXAS SPECIALTY RETAILER REPORTED A LOSS OF 102 MILLION OR 27 CENTS A SHARE FOR ITS FOURTH QUARTER ENDED FEB 26 COMPARED WITH NET INCOME OF 53 MILLION OR 14 CENTS A SHARE A YEAR AGO PIER 1'S SALES ROSE 10 FOR THE QUARTER TO 1819 MILLION RESULTS FOR THE QUARTER REFLECT A CHARGE OF 165 MILLION OR 44 CENTS A SHARE FOR THE COST OF CLOSING SOME 50 STORES OVER THE NEXT YEAR AND FOR COSTS ASSOCIATED WITH THE CARRYING COSTS OF HOLDINGS IN GENERAL HOST CORP COMMON STOCK PIER 1 RECEIVED 19 MILLION SHARES OF GENERAL HOST COMMON WHEN IT SOLD ITS 495 INTEREST IN ITS SUNBELT UNIT TO GENERAL HOST SINCE THEN GENERAL HOST COMMON HAS DECLINED TO 6125 A SHARE FROM 925 9404220080 940422 NORTHWEST AIR POSTS 183 MILLION PROFIT IN ITS FIRST RESULTS SINCE PUBLIC OFFERING BY CARL QUINTANILLA STAFF REPORTER OF THE WALL STREET JOURNAL NORTHWEST AIRLINES IN ITS FIRST EARNINGS REPORT SINCE RETURNING TO PUBLIC OWNERSHIP POSTED RECORD FIRSTQUARTER PROFIT OF 183 MILLION OR FIVE CENTS A SHARE REFLECTING IMPROVED OPERATIONS AND A RESTRUCTURING OF ITS ROUTE SYSTEM THE NATION'S FOURTHLARGEST AIRLINE WHICH HAD BEEN CLOSELY HELD FROM 1989 UNTIL ITS 260 MILLION PUBLIC OFFERING LAST MONTH HAD A NET LOSS OF 1003 MILLION OR 186 A SHARE IN THE YEAREARLIER QUARTER THE LATEST QUARTER'S PROFIT EXCEEDED THE PREVIOUS FIRSTQUARTER RECORD OF 174 MILLION SET IN 1979 AND MARKED THE THIRD CONSECUTIVE QUARTER IN WHICH THE CARRIER HAS TURNED A PROFIT OPERATING REVENUE FOR THE QUARTER WAS 213 BILLION UP 59 FROM 201 BILLION IN THE FIRST QUARTER OF 1993 NORTHWEST SHARES ROSE 125 CENTS TO 1450 IN NASDAQ STOCK MARKET TRADING YESTERDAY NORTHWEST BASED IN ST PAUL MINN SAID ITS EARNINGS REFLECTED COSTCUTTING INITIATIVES WHICH INCLUDED PULLING OUT OF SEVERAL UNPROFITABLE MARKETS SUCH AS MILWAUKEE AND SEOUL SOUTH KOREA OVERALL THE AIRLINE'S AVAILABLE SEAT MILES A MEASURE OF CAPACITY FELL 42 FROM THE YEAREARLIER PERIOD TO 207 MILLION PASSENGER LOAD FACTOR A PERCENTAGE OF SEATS FILLED ROSE 18 PERCENTAGE POINTS TO 655 THE FIRST QUARTER REFLECTS FUNDAMENTAL IMPROVEMENTS IN THE WAY WE RUN OUR COMPANY SAID NORTHWEST'S CHIEF EXECUTIVE OFFICER JOHN DASBURG THIS INDUSTRY HAS BECOME A LITTLE OVEREXTENDED WE'VE SHOWN THAT IF YOU'RE CAREFUL YOU CAN SHRINK YOUR WAY INTO PROFITABILITY NORTHWEST HAS INITIATED SEVERAL COSTCUTTING MEASURES SINCE LAST SUMMER WHEN ITS UNIONS AGREED TO 886 MILLION IN WAGE CONCESSIONS IN EXCHANGE FOR A 27 STAKE IN THE COMPANY THAT AGREEMENT WHICH HELPED THE AIRLINE AVERT A CHAPTER 11 FILING FOR PROTECTION FROM CREDITORS LOWERED COSTS FOR THE FIRST QUARTER BY 35 YIELDS MEANWHILE ROSE 8 AND PASSENGER TRAFFIC SLIPPED 15 FROM THE YEAREARLIER PERIOD TO 135 MILLION REVENUE PASSENGER MILES A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE NORTHWEST'S FIRST QUARTER WAS MARRED BY TWO MAJOR SETBACKS IT WAS FORCED TO SLASH THE PRICE OF ITS OFFERING TO 13 A SHARE FROM 20 AFTER FACING POOR INVESTOR RESPONSE TWO WEEKS LATER IT POSTPONED A PLANNED 350 MILLION DEBT OFFERING AS A RESULT OF POOR MARKET CONDITIONS OVERALL THE COMPANY RAISED 6621 MILLION IN FINANCING DURING THE FIRST QUARTER AND SPENT 456 MILLION OF THE MONEY PAYING DOWN DEBT THE AIRLINE IS BURDENED BY ABOUT 5 BILLION IN LONGTERM DEBT AND CAPITAL LEASE OBLIGATIONS BUT IT CURRENTLY HAS ABOUT 1 BILLION IN LIQUIDITY MR DASBURG SAID WHILE NORTHWEST ROUTINELY DISCLOSED ITS EARNINGS AS A PRIVATE COMPANY FEW WALL STREET ANALYSTS HAD PUBLISHED ESTIMATES FOR THE CARRIER'S FIRST QUARTER RAY NEIDL AN ANALYST WITH FURMAN SELZ SAID HE HAD EXPECTED NORTHWEST TO BREAK EVEN FOR THE QUARTER HE ADDED THAT WHILE SOME INVESTORS STILL HAVE TO BE CONVINCED THAT THIS AIRLINE ISN'T A FLUKE THE EARNINGS SHOULD START TO CALM FEARS ABOUT ITS PROSPECTS I THINK PEOPLE ARE STARTING TO WONDER MAYBE THIS IS REAL' HE SAID MEANWHILE SOUTHWEST AIRLINES REPORTED THAT FIRSTQUARTER NET INCOME ROSE 39 TO 418 MILLION OR 28 CENTS A SHARE FROM 402 MILLION OR 27 CENTS A SHARE A YEAR EARLIER THE 1993 RESULTS INCLUDE A GAIN FROM AN ACCOUNTING CHANGE OF 152 MILLION OR 10 CENTS A SHARE REVENUE JUMPED 24 TO 6194 MILLION FROM 4989 MILLION PRIMARILY BECAUSE THE RESULTS INCLUDE THOSE OF REGIONAL CARRIER MORRIS AIR CORP OF SALT LAKE CITY WHICH SOUTHWEST ACQUIRED DEC 31 SOUTHWEST CHAIRMAN HERBERT D KELLEHER SAID THE MORRIS PURCHASE HAS GONE EXTRAORDINARILY WELL AND MORRIS'S FIRSTQUARTER PROFITS EASILY EXCEEDED OUR EXPECTATIONS LOOKING AHEAD MR KELLEHER SAID THAT TRAFFIC GROWTH AND THE COMPANY'S LOAD FACTOR REMAIN EXCEPTIONALLY STRONG AND THAT DEMAND FOR TRAVEL IN THE CURRENT QUARTER IS BRISK SO FAR BUT HE ADDED THAT WHILE BOOKINGS LOOK STRONG THE AIRLINE IS UNLIKELY TO MATCH LAST YEAR'S SECONDQUARTER LOAD FACTOR OF 705 WHICH IS QUITE HIGH FOR THE INDUSTRY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY SOUTHWEST SHARES JUMPED 150 OR 5 TO 31375 9404220079 940422 BUSINESS BRIEF BDM INTERNATIONAL INC COMPANY POSTPONES IPO PLANS TO REPURCHASE SHARES BDM INTERNATIONAL INC SAID IT WAS PUTTING OFF A PLANNED INITIAL PUBLIC OFFERING BECAUSE OF MARKET VOLATILITY AND INSTEAD WILL REPURCHASE SHARES FROM CERTAIN INSTITUTIONAL INVESTORS THE MCLEAN VA PROVIDER OF INFORMATION TECHNOLOGY SERVICES ALSO REPORTED THAT FIRSTQUARTER NET INCOME ROSE 26 TO 29 MILLION OR 24 CENTS A SHARE FROM 23 MILLION OR 19 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 60 TO 1652 MILLION BDM WAS PURCHASED FROM FORD MOTOR CO IN A 1235 MILLION LEVERAGED BUYOUT LED BY CARLYLE GROUP LP AND MANAGEMENT IN 1990 SOME OF THE ORIGINAL INSTITUTIONAL INVESTORS PLANNED TO OFFER SHARES AS PART OF THE PUBLIC OFFERING AT 13 TO 15 A SHARE INSTEAD SUBJECT TO BOARD APPROVAL BDM WILL BUY BACK TWO MILLION TO THREE MILLION SHARES AT ABOUT 14 A SHARE FROM CARLYLE AND ITS INVESTORS THE UNIVERSITY OF TEXAS EQUITABLE LIFE ASSURANCE CO AND THE RICHARD KING MELLON FOUNDATION 9404220078 940422 BUSINESS BRIEF WR GRACE & CO FLORIDA COMPANY TO BUILD PACKAGING PLANT IN MALAYSIA WR GRACE & CO SAID ITS PACKAGING BUSINESS PLANS TO SPEND MORE THAN 40 MILLION TO BUILD A NEW PLANT IN KUANTAN MALAYSIA THE SPECIALTY CHEMICALS CONCERN BASED IN BOCA RATON FLA SAID THE NEW 90000SQUAREFOOT FACILITY WILL HELP TO SATISFY THE DEMAND FOR ITS CRYOVAC PACKAGING MATERIALS IN THE ASIA PACIFIC REGION WHICH IT CALLED THE FASTEST GROWING PACKAGING MARKET IN THE WORLD THE PLANT WHICH IS SCHEDULED TO BEGIN PRODUCTION IN 1996 IS EXPECTED TO EMPLOY MORE THAN 100 PEOPLE LAST MONTH THE COMPANY ANNOUNCED A 70 MILLION FILMS EXPANSION PLAN FOR ITS EXISTING PLANTS IN ST NEOTS UNITED KINGDOM SENECA SC AND EPERNON FRANCE GRACE'S CRYOVAC PRODUCTS INCLUDE HIGH QUALITY AND PERFORMANCE MULTILAYER SHRINKABLE PLASTIC FILMS USED TO PACKAGE A VARIETY OF FOOD AND NONFOOD INDUSTRIAL AND CONSUMER GOODS TO PROTECT AGAINST DAMAGE PRESERVE FRESHNESS AND ENHANCE MARKETABILITY 9404220077 940422 BUSINESS BRIEF SCHLUMBERGER LTD NET INCOME OF 1215 MILLION IS POSTED FOR FIRST QUARTER SCHLUMBERGER LTD THE OILFIELD SERVICES GIANT SAID FIRSTQUARTER NET INCOME TOTALED 1215 MILLION OR 50 CENTS A SHARE DOWN 9 FROM THE YEAR EARLIER 1332 MILLION OR 55 CENTS BEFORE AN ACCOUNTING CHANGE AFTER THE CHANGE SCHLUMBERGER A YEAR AGO REPORTED A LOSS OF 1148 MILLION OR 48 CENTS A SHARE REVENUE FROM OPERATIONS ROSE TO 164 BILLION FROM 159 BILLION SCHLUMBERGER IN NEW YORK SAID ACTIVE DRILLING RIGS WORLDWIDE WERE 7 ABOVE LAST YEAR DUE TO A 14 INCREASE IN NORTH AMERICA WHILE IN THE REST OF THE WORLD RIGS DECREASED BY 2 THE STOCK CLOSED AT 54375 A SHARE UP 1 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9404220076 940422 BUSINESS BRIEF WESTINGHOUSE ELECTRIC CORP EARNINGS OF 36 MILLION POSTED FOR FIRST QUARTER WESTINGHOUSE ELECTRIC CORP REPORTED FIRSTQUARTER EARNINGS OF 36 MILLION OR SEVEN CENTS A SHARE COMPARED WITH A YEAREARLIER PROFIT OF 3 MILLION AFTER A REQUIRED DIVIDEND WAS PAID FOR SERIES B PREFERRED STOCK THE YEAREARLIER RESULT AMOUNTED TO A TWOCENTSASHARE LOSS THERE WAS A STEEP DROP IN OPERATING PROFIT TO 65 MILLION FROM 146 MILLION THE EARNINGS WERE BETTER THAN ANALYSTS PREDICTED IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE STOCK CLOSED AT 11375 UP 25 CENTS THE PITTSBURGHBASED PRODUCER OF ELECTRICAL EQUIPMENT WITH INTERESTS IN FINANCIAL SERVICES BROADCASTING AND POWERGENERATION EQUIPMENT BLAMED THE DECLINE IN OPERATING PROFIT IN PART ON INCREASED PENSION EXPENSES OF 33 MILLION AND REDUCED LICENSEE INCOME OF 15 MILLION WESTINGHOUSE SAID IT COMPLETED THE DIVESTITURES OF THE DISTRIBUTION & CONTROL BUSINESS UNIT AND WESTINGHOUSE ELECTRIC SUPPLY CO CASH PROCEEDS TOTALED 14 BILLION THE COMPANY SAID FIRSTQUARTER SALES WERE 1905 MILLION A 66 INCREASE FROM 1787 MILLION A YEAR EARLIER SALES BENEFITED FROM A ONETIME PRETAX GAIN OF ABOUT 30 MILLION FROM THE SALE OF TWO RADIO STATIONS 9404220075 940422 BUSINESS BRIEF MIDLAND WALWYN CAPITAL INC INVESTMENT DEALER TO LAUNCH SIX MUTUAL FUNDS IN CANADA MIDLAND WALWYN CAPITAL INC SAID IT PLANS TO ENTER THE CANADIAN MUTUALFUND BUSINESS BY LAUNCHING A FAMILY OF SIX NOLOAD FUNDS THAT WILL INVEST IN CANADIAN SECURITIES THE NEW ATLAS FUNDS FOLLOW THE INTRODUCTION LAST YEAR OF THE HERCULES FUNDS A JOINT VENTURE BETWEEN MIDLAND WALWYN AND PIPER JAFFRAY INC THE BROKERAGE UNIT OF MINNEAPOLISBASED PIPER JAFFRAY COS THOSE NOLOAD FUNDS INVEST INTERNATIONALLY AND NOW HAVE ABOUT 450 MILLION UNDER MANAGEMENT MR SCHULTZ SAID MIDLAND WALWYN A TORONTO INVESTMENT DEALER ALSO ANNOUNCED THAT IT IS SETTING UP A NEW DIVISION ATLAS CAPITAL GROUP WHICH WILL ENCOMPASS ASSETS UNDER MANAGEMENT FOR INDIVIDUAL INVESTORS MR SCHULTZ SAID THAT MIDLAND WALWYN HAS ABOUT 17 BILLION CANADIAN DOLLARS US123 BILLION IN SUCH ASSETS UNDER MANAGEMENT 9404220074 940422 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 COLUMBIA/HCA HEALTHCARE CORP 150 MILLION OF DEBENTURES DUE APRIL 15 2024 PRICED AT PAR TO YIELD 836 THE COMPANY SAID THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 90 BASIS POINTS ABOVE TREASURYS THE OFFERING RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY STANDARD & POOR'S RATINGS GROUP WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO HOUSEHOLD FINANCIAL CORP 125 MILLION OF SENIOR NOTES DUE APRIL 30 1999 PRICED AS 7125S AT 99627 TO YIELD 7215 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 65 BASIS POINTS ABOVE THE WHENISSUED FIVEYEAR TREASURY RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC HOUSEHOLD FINANCIAL IS A UNIT OF HOUSEHOLD INTERNATIONAL INC NORWEST FINANCIAL INC 150 MILLION OF NOTES DUE FEB 15 1997 PRICED AS 625S AT 99768 TO YIELD 6337 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 35 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NORWEST FINANCIAL IS A UNIT OF NORWEST CORP MESA INC 15 MILLION COMMON SHARES PRICED AT 6 EACH THE COMPANY SAID MERRILL LYNCH & CO IS LEAD UNDERWRITER PROJECT SOFTWARE & DEVELOPMENT INC INITIAL OFFERING OF 19 MILLION COMMON SHARES PRICED AT 850 EACH THROUGH UNDERWRITERS LED BY FIRST ALBANY CORP AND PIPER JAFFRAY INC QUINTILES TRANSNATIONAL CORP INITIAL OFFERING OF TWO MILLION COMMON SHARES PRICED AT 1950 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO AND HAMBRECHT & QUIST SABER SOFTWARE CORP INITIAL OFFERING OF 18 MILLION COMMON SHARES PRICED AT 950 EACH THROUGH UNDERWRITERS LED BY WESSELS ARNOLD & HENDERSON AND TUCKER ANTHONY INC TRANSACTION NETWORK SERVICES INC INITIAL OFFERING OF 18 MILLION COMMON SHARES PRICED AT 10 EACH THROUGH UNDERWRITERS LED BY HAMBRECHT & QUIST AND WHEAT FIRST BUTCHER & SINGER CHICAGO 806 MILLION OF 1994 SERIES A REVENUE BONDS FOR THE CITY'S MIDWAY AIRPORT PRICED BY A SMITH BARNEY SHEARSON INCGROUP THIS ISSUE IS SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX YIELDS RANGE FROM 5 IN 1998 TO 65 IN 2024 THIS ISSUE IS INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRIES TRIPLEA RATINGS FROM MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 112 BILLION OF SERIES 1730 REALESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES THE OFFERING PREVIOUSLY INCREASED TO 625 MILLION FROM 500 MILLION IS BACKED BY THE AGENCY'S 30YEAR 7 SECURITIES AND UNDERWRITTEN BY SALOMON BROTHERS INC THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE MATURITY OF 356 MONTHS OAKWOOD HOMES CORP 175 MILLION OF MANUFACTURED HOUSING ASSETBACKED CERTIFICATES PRICED IN FIVE PARTS THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO THE 735 MILLION CLASS A1 NOTES WERE PRICED AS 63S AT 998125 TO YIELD 635 A 70BASISPOINT SPREAD ABOVE THE TREASURY'S WHENISSUED TWOYEAR NOTE THE CERTIFICATES RATED TRIPLEA BY S&P HAVE AN AVERAGE LIFE OF 184 YEAR THE 576 MILLION CLASS A2 CERTIFICATES WERE PRICED AS 745S AT 9996875 TO YIELD 751 AN 85BASISPOINT SPREAD ABOVE THE TREASURY'S 875 NOTE OF AUGUST 2000 THE CERTIFICATES WITH AN AVERAGE LIFE OF 621 YEARS WERE RATED TRIPLEA BY S&P THE 192 MILLION CLASS A3 CERTIFICATES WERE PRICED AS 835S AT 9971875 TO YIELD 849 A 155BASISPOINT SPREAD ABOVE THE TREASURY'S 5875 10YEAR NOTE THE CERTIFICATES WITH AN AVERAGE LIFE OF 1296 YEARS WERE RATED SINGLEA BY S&P THE 105 MILLION CLASS B1 CERTIFICATES WERE PRICED AS 81S AT 998125 TO YIELD 821 A 155BASISPOINT SPREAD ABOVE THE TREASURY'S 875 NOTE OF AUGUST 2000 THE CERTIFICATES WITH AN AVERAGE LIFE OF 63 YEARS WERE RATED TRIPLEB BY S&P THE 14 MILLION CLASS B2 CERTIFICATES WERE SOLD IN THE PRIVATE MARKETS THE TWO TRIPLEA CLASSES WERE BACKED BY 25 IN CREDIT SUPPORT FROM THE LOWERRATED CLASSES AND THE RESERVE FUND 9404220073 940422 KEMPER EXPECTS TO REGISTER STRONG EARNINGS FIGURES MAY SPUR A BOOST IN THE ACQUISITION OFFER FROM GE CAPITAL CORP BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL KEMPER CORP SAID IT WILL POST SURPRISINGLY STRONG EARNINGS FOR THE FIRST QUARTER WHICH COULD HELP COAX A HIGHER TAKEOVER BID FROM GE CAPITAL CORP BUT TRADERS SAY THE EARNINGS AREN'T IMPRESSIVE ENOUGH TO PERSUADE SHAREHOLDERS TO VOTE FOR KEMPER IN ITS PROXY BATTLE AGAINST GE DESPITE THE HIGHER PROFITS THEY SAY KEMPER STOCK WOULD PLUMMET IF GE CANCELED ITS PROPOSED 55ASHARE 22 BILLION OFFER KEMPER SAID IT EXPECTS TO REPORT EARNINGS ON CONTINUING OPERATIONS OF MORE THAN 140 A SHARE FOR THE QUARTER COMPARED AGAINST A YEARAGO LOSS OF 38 CENTS A SHARE THE COMPANY EXPECTS QUARTERLY OPERATING EARNINGS ON CONTINUING OPERATIONS OF 80 CENTS A SHARE UP FROM 17 CENTS A SHARE LAST YEAR WALL STREET HAD EXPECTED OPERATING EARNINGS OF 71 CENTS A SHARE OPERATING EARNINGS EXCLUDE CAPITAL GAINS KEMPER WHICH WILL REPORT RESULTS NEXT THURSDAY GAVE NO DETAILS ON WHAT ACCOUNTED FOR THE INCREASE ON THE NEW YORK STOCK EXCHANGE YESTERDAY KEMPER SHARES ROSE TO 57125 UP 75 CENTS KEMPER MADE ITS ANNOUNCEMENT AFTER THE CLOSE OF TRADING THESE STRONG EARNINGS WHICH IN THE AGGREGATE ARE ON TARGET WITH OUR CORPORATE PLAN REINFORCE THE WISDOM OF OUR RESTRUCTURING EFFORTS AND BEGIN TO REFLECT THE UNDERLYING EARNINGS POWER OF KEMPER'S CORE BUSINESSES SAID KEMPER CHAIRMAN DAVID MATHIS REBUFFED IN ITS OFFER TO BUY THE COMPANY THE GENERAL ELECTRIC CO UNIT HAS LAUNCHED A PROXY FIGHT TO ELECT FOUR NOMINEES TO KEMPER'S 13MEMBER BOARD GE SAID ITS NOMINEES WOULD LOBBY TO PUT THE COMPANY UP FOR SALE THE ANNUAL MEETING IS MAY 11 KEMPER BASED IN LONG GROVE ILL IS IN THE MUTUAL FUND LIFE INSURANCE AND STOCK BROKERAGE BUSINESSES THE COMPANY'S MANAGEMENT HAS BEEN MEETING WITH MONEY MANAGERS ALL WEEK TRYING TO CONVINCE THEM THAT THEY CAN DO MORE FOR THE MANAGERS THAN GE MANAGEMENT ARGUES IT CAN LIFT ITS RETURN ON EQUITY TO 15 FROM 6 THROUGH ITS PROGRAM TO INCREASE PROFITS ON ITS INVESTMENT PORTFOLIO EXPAND ITS ASSETMANAGEMENT BUSINESS AND REDUCE LOSSES ON ITS REAL ESTATE INVESTMENTS BUT INVESTORS NOTE THAT KEMPER STOCK TRADED FOR 41 A SHARE BEFORE GE CAME UP WITH ITS BID AND THAT THE STOCK COULD RETURN TO THAT LEVEL IF GE LOSES THE PROXY FIGHT THEY SAY KEMPER HAS LITTLE CHOICE BUT TO COME TO THE BARGAINING TABLE EVENTUALLY 9404220072 940422 UTILITY ASKS HOLDERS TO OUST BOARD MEMBER ORANGE & ROCKLAND'S SMITH CHIEF FOR MANY YEARS IS FIGHTING TO KEEP POST BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ORANGE & ROCKLAND UTILITIES INC DISMISSED ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER JAMES W SMITH LAST FALL BUT MR SMITH ISN'T GOING QUIETLY THOUGH NO LONGER AN EXECUTIVE OF THE COMPANY MR SMITH REMAINS A DIRECTOR UNDER A THREEYEAR TERM TO WHICH HE WAS ELECTED IN THE SPRING OF 1993 BUT IN A RARE CORPORATEGOVERNANCE CLASH THE UTILITY IS ASKING SHAREHOLDERS TO VOTE TO OUST MR SMITH FROM THE BOARD I'VE NEVER HEARD OF SOMETHING LIKE THIS SAID RALPH WARD EDITOR OF CORPORATE BOARD MAGAZINE A PUBLICATION COVERING DIRECTORS' ACTIVITIES WHEN SOMEONE'S JOB SITUATION HAS CHANGED THAT'S USUALLY ENOUGH FOR SOMEONE TO OFFER THEIR RESIGNATION AS A DIRECTOR THE SECURITIES AND EXCHANGE COMMISSION IS UNDERSTOOD TO HAVE TAKEN PARTICULAR NOTICE OF THE DISPUTE IN REVIEWING PROXY MATERIAL FOR THE MAY 11 MEETING IN SPRING VALLEY NY BOTH THE UTILITY AND MR SMITH HAVE SPELLED OUT THEIR DISAGREEMENT IN SPECIFIC LANGUAGE CLOSELY REVIEWED BY THE SEC TO AVOID IMPROPER ELECTIONEERING BUT REMOVING MR SMITH WILL BE DIFFICULT FOR THE PEARL RIVER NY ELECTRIC AND GAS UTILITY CORPORATE BYLAWS AMENDED IN THE LATE 1980S TO MAKE IT DIFFICULT FOR AN OUTSIDE GROUP TO TAKE CONTROL OF THE BOARD REQUIRES APPROVAL BY HOLDERS OF AT LEAST 80 OF THE COMPANY'S SHARES TO REMOVE A DIRECTOR FOR CAUSE A HIGHER FIGURE THAN EVEN THE TURNOUT FOR LAST YEAR'S ANNUAL MEETING THE BOARD ITSELF CAN'T REMOVE A DIRECTOR ORANGE & ROCKLAND'S BYLAWS GIVE A DIRECTOR THE RIGHT TO MAKE HIS CASE TO SHAREHOLDERS AND MR SMITH'S VIEWS ARE FULLY SPELLED OUT IN THE PROXY STATEMENT ALONGSIDE THE ASSERTION BY ACTING CHAIRMAN H KENT VANDERHOEF THAT MR SMITH DOESN'T MERIT A SEAT ON THE BOARD MR SMITH PASSIONATELY DENIES WRONGDOING AND DEFENDS HIMSELF AGAINST HIS DISMISSAL THE 57YEAROLD MR SMITH WHO BECAME CHAIRMAN AND CHIEF EXECUTIVE IN 1979 HAS HUNG TOUGH THROUGH A STRING OF PROBLEMS AT THIS ELECTRIC AND GAS UTILITY WHICH SERVES PRIMARILY THE SPRAWLING RURAL AND EXURBAN REGIONS JUST NORTH OF NEW YORK CITY THREE OTHER FORMER EMPLOYEES HAVE PLEADED GUILTY TO CHARGES RELATED TO MANIPULATION OF CORPORATE FUNDS THE PROBES INCLUDING THE COMPANY'S INVESTIGATION THAT SO FAR HAS COST 6 MILLION TURNED UP ALLEGED ILLEGAL CAMPAIGN CONTRIBUTIONS MISAPPROPRIATION OF FUNDS AND A PHONY BILLING SCHEME ORANGE & ROCKLAND HAS HAD TO MAKE A REBATE TO CUSTOMERS HAD ITS DEBT DOWNGRADED BY STANDARD & POOR'S RATINGS GROUP AND SEEN EARNINGS DECLINE BECAUSE OF INVESTIGATION EXPENSES IN OCTOBER THE COMPANY DISMISSED MR SMITH WITH CAUSE CITING A GROSS NEGLECT OF DUTY AND SERIOUS WILLFUL MISCONDUCT FOLLOWING MR SMITH'S ABORTED ATTEMPT TO GET A FINANCIAL SETTLEMENT FROM THE COMPANY ORANGE & ROCKLAND FILED A CIVIL SUIT IN NEW YORK STATE SUPREME COURT IN FEBRUARY SEEKING 5 MILLION IN DAMAGES AND IN MARCH A ROCKLAND COUNTY GRAND JURY INDICTED MR SMITH ON EIGHT COUNTS OF GRAND LARCENY AND TWO COUNTS OF PETIT LARCENY HE PLEADED NOT GUILTY LINDA WINIKOW FORMER VICE PRESIDENT OF COMMUNICATION AND POLICY PLEADED GUILTY IN THE FALL TO STATE CHARGES OF GRAND LARCENY COMMERCIAL BRIBERY AND MAKING A CAMPAIGN CONTRIBUTION UNDER A FALSE NAME SHE IS COOPERATING WITH PROSECUTORS TWO OTHER FORMER EMPLOYEES PLEADED GUILTY TO GRAND LARCENY THE ROCKLAND COUNTY DISTRICT ATTORNEY ALONG WITH THE COMPANY CONTINUE TO INVESTIGATE PAST CORPORATE ACTIVITIES IN HIS LETTER TO SHAREHOLDERS MR SMITH WHO HAS TWO YEARS OF HIS DIRECTOR'S TERM REMAINING DECLARES I HAVE NEVER MISUSED MY FORMER OFFICE NEVER PERMITTED MY PERSONAL INTERESTS TO INTERFERE WITH THE SUCCESSFUL PERFORMANCE OF MY DUTIES AND HAVE NEVER INTENTIONALLY VIOLATED THE TRUST YOU HAVE BESTOWED UPON ME MY ONLY GOALS HAVE BEEN TO SERVE THE COMPANY AND TO SECURE ITS CONTINUED GROWTH AND FINANCIAL STABILITY SO THAT IT MAY SERVE EFFECTIVELY AND EFFICIENTLY THE COMMUNITIES IN WHICH IT IS PART HE ADDS HE ASKS SHAREHOLDERS TO KEEP HIM ON THE BOARD SO HE CAN CONTINUE TO SERVE YOU AND TO UTILIZE MY EXPERIENCE AND KNOWLEDGE ON YOUR BEHALF IN PROPOSING TO REMOVE MR SMITH THE COMPANY RECOUNTS ALLEGATIONS FROM THE INDICTMENTS AMONG THE CHARGES IS MISAPPROPRIATION OF CORPORATE FUNDS INCLUDING 7000 FOR HOLIDAY BASKETS FOR FAMILY AND FRIENDS AND 1760 TO CLEAN HIS HOUSE 9404220071 940422 BUSINESS BRIEF GUY F ATKINSON CO OF CALIFORNIA FIRM MAY GET RID OF UNITS TO BOOST ITS STAGNANT STOCK GUY F ATKINSON CO OF CALIFORNIA HOPING TO JUMPSTART STAGNATED STOCK VALUE SAID IT IS CONSIDERING DISPOSING OF ALL NONCONSTRUCTION OPERATIONS WHICH CURRENTLY ACCOUNT FOR A THIRD OF REVENUE THE SAN BRUNO CALIF CONSTRUCTION AND DIVERSIFIEDSERVICES CONCERN SAID IT WANTS TO FOCUS ON ITS CORE CONSTRUCTION BUSINESS TO ENHANCE SHAREHOLDER VALUE THE COMPANY'S SHARES HAVE BEEN STUCK IN THE 810 RANGE FOR MORE THAN TWO YEARS AND CLOSED AT 8125 DOWN 11 OR 1 ON THE NASDAQ STOCK MARKET YESTERDAY THE UNITS CONSIDERED FOR DISPOSITION EITHER BY SALE OR OTHER UNSPECIFIED MEANS INCLUDE LAKE CENTER INDUSTRIES WHICH SUPPLIES AUTOMOTIVE SWITCHES AND CONTROLS COMCO PIPE OF SUPPLY CO A PIPEDISTRIBUTION BUSINESS AND OILANDGAS INVESTMENTS THOSE BUSINESSES ACCOUNTED FOR 34 OR ABOUT 175 MILLION OF ATKINSON'S 1993 REVENUE OF 519 MILLION 9404220070 940422 BUSINESS BRIEF JOHNSON CONTROLS INC SHARES SLIP 150 WITH LOSS OF SEARS ROEBUCK CONTRACT JOHNSON CONTROLS INC SHARES SLIPPED AFTER THE COMPANY LOST AN IMPORTANT CONTRACT AS SEARS ROEBUCK & CO'S SOLE SUPPLIER OF DIEHARD BATTERIES THE NATION'S BIGGEST MAKER OF AUTO BATTERIES JOHNSON HAS MADE MORE THAN 100 MILLION DIEHARD BATTERIES FOR SEARS SINCE THE LINE WAS INTRODUCED IN 1967 BUT YESTERDAY CHICAGOBASED SEARS SAID THAT WHEN JOHNSON'S SUPPLY CONTRACT EXPIRES AT THE END OF SEPTEMBER GENERAL MOTORS CORP'S ACDELCO UNIT WHICH MAKES SEARS'S PRIVATELABEL BATTERIES AND EXIDE CORP OF READING PA WILL BECOME ITS DIEHARD SUPPLIERS IN LATE NEW YORK STOCK EXCHANGE TRADING JOHNSON DIPPED 150 A SHARE TO 4950 SEARS SAID THE CHANGE DOESN'T REFLECT ANY DISSATISFACTION WITH THE CURRENT QUALITY OF THE DIEHARD BUT RATHER WAS BASED ON COST AND OTHER FACTORS THE DIEHARD CONTRACT WITH SEARS LAST YEAR REPRESENTED A LITTLE LESS THAN 20 OR AN INDICATED 136 MILLION OF JOHNSON'S 1993 BATTERY SALES THE COMPANY SAID MILWAUKEEBASED JOHNSON WHICH ALSO HAS INTERESTS IN AUTO SEATING BUILDING CONTROLS AND PLASTIC PACKAGING HAD TOTAL 1993 SALES OF 618 BILLION 9404220069 940422 MARKETING BRIEF KNIGHTRIDDER INC FIRSTPERIOD NET SOARED 31 ADVERTISING REVENUE IS CITED KNIGHTRIDDER INC BOLSTERED BY GAINS IN ADVERTISING REVENUE SAID FIRSTQUARTER EARNINGS JUMPED 31 THE MIAMIBASED MEDIA COMPANY SAID EARNINGS ROSE TO 304 MILLION OR 55 CENTS A SHARE FROM 231 MILLION OR 42 CENTS A SHARE A YEAR EARLIER REVENUE INCREASED 8 TO 6309 MILLION FROM 5839 MILLION THE RESULTS WHICH EXCEEDED ANALYSTS' EXPECTATIONS REFLECTED A STRONG PERFORMANCE IN THE COMPANY'S NEWSPAPER DIVISION WHERE PROFIT ROSE 21 TO 681 MILLION FROM 565 MILLION ADVERTISING REVENUE INCREASED 54 DURING THE QUARTER IN KNIGHTRIDDER'S BUSINESS INFORMATIONSERVICES DIVISION PROFIT ROSE 34 TO 75 MILLION ON A 21 INCREASE IN REVENUE IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE KNIGHTRIDDER SHARES WERE AT 58375 A SHARE UP 375 CENTS 9404220068 940422 ECONOMY SENATE PASSES BILL TO AMEND BANKRUPTCY LAW VOTE OF 940 IS RECORDED AFTER SECTION OPPOSED BY BUSINESS IS REMOVED BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE PASSED A BILL DESIGNED TO REDUCE THE TIME AND COST OF BANKRUPTCY PROCEEDINGS AS WELL AS TO STRENGTHEN CREDITOR RIGHTS AND ENABLE MORE INDIVIDUALS TO WEATHER BANKRUPTCY PROCEEDINGS WITHOUT SELLING THEIR ASSETS THE BILL TO AMEND THE 1978 BANKRUPTCY CODE MOVED FORWARD AFTER A CORPORATE COALITION INCLUDING THE BIG THREE AUTO COMPANIES AND THE NATION'S LARGEST BANKS SUCCEEDED IN KNOCKING OUT A LABORBACKED PROVISION THAT BUSINESS CLAIMED WOULD RAISE FINANCING COSTS AND FORCE SOME DESTITUTE COMPANIES TO CLOSE DOWN RATHER THAN REORGANIZE THE DROPPED MEASURE COULD HAVE FORCED COMPANIES REORGANIZING UNDER CHAPTER 11 OF THE BANKRUPTCY CODE TO DIVERT BORROWED FUNDS FROM OPERATIONS INTO PAYMENTS FOR RETIREE HEALTH BENEFITS WITH THE CHANGE THE BILL HAS BROAD SUPPORT FROM LENDERS AND SHOULD MAKE IT THROUGH CONGRESS THIS YEAR TWO YEARS AGO THE HOUSE AND THE SENATE AGREED ON A BANKRUPTCY BILL THAT FAILED IN THE FINAL MOMENTS OF THE CONGRESSIONAL SESSION AFTER BIG BANKS TURNED AGAINST THE BILL BECAUSE OF THE RETIREE HEALTH PROVISION LENDERS LED BY JP MORGAN & CO AND GE CAPITAL SERVICES A UNIT OF GENERAL ELECTRIC CO SAID THE PROVISION COULD JEOPARDIZE SOCALLED DEBTORINPOSSESSION LOANS WHICH ARE HIGHLY LUCRATIVE LINES OF CREDIT THAT HELP REORGANIZING COMPANIES MEET THEIR NEEDS FOR WORKING CAPITAL FINAL ACTION ON THE BILL WHICH PASSED ON A 940 ROLL CALL LAST NIGHT WAS HELD UP BY DEBATE OVER AMENDMENTS DEALING WITH THE ARMS EMBARGO AGAINST BOSNIA AND SEARCHES FOR GUNS IN PUBLIC HOUSING ALTHOUGH THE HOUSE HASN'T STARTED WORK ON THE BANKRUPTCY BILL YET IT'S EXPECTED TO MOVE QUICKLY WHEN IT TAKES UP A SLIGHTLY NARROWER BILL THAN THE SENATE MEASURE WHILE THE SENATE BILL DEALS SPECIFICALLY WITH THE RIGHTS OF COMPANIES AND INDIVIDUALS IN BANKRUPTCY IT ALSO WOULD IMPROVE THE AVAILABILITY OF CREDIT FOR MANY HEALTHY COMPANIES BY STRENGTHENING SOME LENDER PROTECTIONS FOR INSTANCE ONE SECTION OF THE MEASURE IS DESIGNED TO REMOVE A CLOUD OVER THE FINANCIAL FUTURE OF MANVILLE CORP AS PART OF ITS REORGANIZATION UNDER CHAPTER 11 TO PROTECT ITSELF FROM HUGE ASBESTOSLIABILITY CLAIMS MANVILLE ESTABLISHED A TRUST TO DEAL WITH ALL CLAIMS FILED AGAINST THE COMPANY THE BANKRUPTCY COURT ISSUED AN ORDER REQUIRING ALL CLAIMANTS TO SEEK PAYMENT FROM THE TRUST RATHER THAN THE COMPANY DESPITE THE RULING THE COMPANY CONTENDS THAT THE FINANCIAL MARKETS REFUSE TO BELIEVE THAT THE ARRANGEMENT FULLY PROTECTS MANVILLE FROM FURTHER SUITS AND THAT ITS STOCK IS ARTIFICIALLY DEPRESSED AS A RESULT BECAUSE 80 OF THE COMPANY'S COMMON STOCK IS HELD BY THE TRUST TO HELP SETTLE CLAIMS A DEPRESSED STOCK PRICE REDUCES THAT AMOUNT OF MONEY AVAILABLE FOR THE SETTLEMENT OF CLAIMS THE BILL BLESSES THE TRUST ARRANGEMENT USED BY MANVILLE THE BILL ALSO REVERSES A COURT DECISION THAT HAS DISCOURAGED BANKS FROM LENDING TO MANY SMALL BUSINESSES THAT DECISION FORCED LENDERS TO RETURN ALL LOAN PAYMENTS MADE IN THE YEAR BEFORE A COMPANY FILED UNDER THE BANKRUPTCY CODE IF THE COMPANY'S INSIDERS HAD PERSONALLY GUARANTEED THE LOAN BANKRUPTCY FILINGS HAVE SOARED SINCE THE LAST MAJOR REVISION OF THE BANKRUPTCY LAW IN 1978 SOME ANALYSTS SAY THE 1978 LAW MADE IT TOO EASY TO FILE FOR BANKRUPTCY OTHERS ATTRIBUTE THE INCREASE TO A PEAK OF ONE MILLION FILINGS IN 1992 TO THE NATION'S TWO SHARP RECESSIONS SINCE 1980 THE SENATE BILL WOULDN'T MAKE IT MORE DIFFICULT TO FILE FOR BANKRUPTCY BUT WOULD ACCELERATE THE RESOLUTION OF CASES PARTICULARLY FOR SMALL BUSINESSES ONCE CASES ARE FILED THE BILL WOULD STRENGTHEN THE HAND OF BANKRUPTCY COURT JUDGES TO MOVE CASES FORWARD AND ALSO GIVE THEM MORE AUTHORITY TO PREVENT THE PAYMENT OF ATTORNEY FEES THAT ARE DEEMED EXORBITANT FOR INDIVIDUALS THE BILL WOULD INCREASE TO 1 MILLION FROM 350000 THE CEILING ON PERSONAL DEBTS FOR A CHAPTER 13 FILING WHICH GIVES DEBTORS UP TO FIVE YEARS TO REORGANIZE THEIR FINANCES AND PAY OFF THEIR DEBTS THIS CHANGE IS DESIGNED TO REDUCE THE NUMBER OF PEOPLE WHO ARE FORCED TO LIQUIDATE MANY OF THEIR ASSETS IN ORDER TO PAY A PERCENTAGE OF THEIR DEBTS UNDER CHAPTER 7 MANY DEBTORS AND CREDITORS PREFER CHAPTER 13 REPAYMENTS OVER CHAPTER 7 LIQUIDATIONS THE BILL ALSO WOULD GIVE DEBTORS MORE TIME TO MAKE DELINQUENT MORTGAGE PAYMENTS IN ORDER TO AVOID FORECLOSURE ON THEIR HOMES PREVENT DEBTORS IN BANKRUPTCY PROCEEDINGS FROM ESCAPING ALIMONY AND CHILDSUPPORT PAYMENTS IMPROVE THE CHANCES THAT CREDITORS WOULD BE ABLE TO COLLECT SOME OF THE RENTS PAID TO LANDLORDS THAT ARE IN BANKRUPTCY PROCEEDINGS GIVE GREATER PROTECTION IN BANKRUPTCY PROCEEDINGS TO COMPANIES THAT LEASE PLANES AND TRAINS TO TRANSPORTATION COMPANIES AND STRENGTHEN THE RIGHT OF AIRPORT AUTHORITIES TO RECLAIM UNUSED AIRPORT GATES FROM AIRLINES TRYING TO REORGANIZE UNDER CHAPTER 11 ALLOW REPRESENTATIVES OF THE FEDERAL PENSION BENEFIT GUARANTY CORP AND STATE AND LOCAL PENSION PLANS THE RIGHT TO SIT ON CREDITOR COMMITTEES IN CHAPTER 11 CORPORATE REORGANIZATIONS SPECIFY THAT DEBTS RUN UP WHEN TAXES ARE PAID WITH A CREDIT CARD CAN'T BE DISCHARGED IN BANKRUPTCY ESTABLISH A NATIONAL BANKRUPTCY REVIEW COMMISSION TO STUDY THE NEED FOR FURTHER CHANGES IN THE BANKRUPTCY CODE 9404220067 940422 MUTUAL FUNDS MONEY FLOWS TO SCHWAB AS OTHERS SINK BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL CHARLES SCHWAB & CO'S GAIN IS PROVING TO BE THE MUTUALFUND INDUSTRY'S PAIN MANY PEOPLE WHO BOUGHT STOCK OR BOND FUNDS THROUGH SCHWAB HAVE FLED THE SINKING STOCK MARKET INTO SCHWAB'S MONEYMARKET FUNDS LEAVING THE FUND COMPANIES WORRIED THAT THEY MAY HAVE LOST THESE CUSTOMERS FOR GOOD WHEN INVESTORS PHONE IN TO TRADE THROUGH THE SAN FRANCISCO DISCOUNTBROKERAGE FIRM SCHWAB GIVES THEM ONE CHOICE OF MONEYMARKET FUNDS ITS OWN SCHWAB'S MONEYMARKET ACCOUNTS GREW AT 145 DURING THE FIRST QUARTER TO 166 BILLION FROM 145 BILLION AT THE END OF 1993 THIS IS THE FUNDAMENTAL ISSUE LURKING BEHIND THE SCHWAB RELATIONSHIP SAYS GORDON SNYDER EXECUTIVE VICE PRESIDENT OF MARKETING AT TWENTIETH CENTURY INVESTORS IN KANSAS CITY MO IF AN INDIVIDUAL SWITCHES OUT OF OUR FUNDS INTO SCHWAB'S MONEYMARKET FUNDS THEN THE MONEY IS NO LONGER IN OUR COMPLEX AND I DON'T KNOW IF IT IS GOING TO COME BACK IN CLEARLY SCHWAB'S ONESOURCE FUNDSALES MACHINERY A FASTGROWING ARM OF THE DISCOUNTBROKERAGE HOUSE IS TURNING OUT TO BE A TWOEDGED SWORD FOR MUTUALFUND COMPANIES ON THE ONE HAND THE MUTUALFUND COMPANIES AREN'T ABOUT TO ABANDON ONESOURCE BECAUSE IT HAS HELPED BOOST FUND SALES IN PART BY SLASHING THROUGH THE PAPERWORK INVOLVED IN FUND INVESTING ON THE OTHER ONESOURCE ALSO HAS LOOSENED THE TIES OF FUND LOYALTY TEMPTING INVESTORS TO STRAY AWAY FROM A PARTICULAR FUND FAMILY ONESOURCE WHICH ALLOWS INVESTORS TO BUY NEARLY 250 NOLOAD FUNDS WITHOUT PAYING TRANSACTION FEES GREW 145 IN TOTAL ASSETS TO 95 BILLION AT THE END OF MARCH FROM 83 BILLION AT YEAR END MANY FUND COMPANIES PREVIOUSLY BENEFITED FROM INFLOWS THAT RESULTED FROM THE ONESOURCE PROGRAM NOW THEY HAVE EXPERIENCED THE FLIP SIDEWITHDRAWALS KNOWN AS REDEMPTIONS IN THE INDUSTRY IF SCHWAB DIDN'T HAVE THAT PROGRAM A GOOD PORTION OF THE MONEY THAT WAS REDEEMED FROM OUR FUNDS WOULD STILL BE WITH US SAYS ERIK BORGEN PRESIDENT OF FOUNDERS ASSET MANAGEMENT IN DENVER MR BORGEN ESTIMATES THAT ABOUT 70 MILLION FLOWED OUT OF THE FUND COMPANY AND INTO SCHWAB MONEYMARKET FUNDS FROM AROUND MARCH 28 TO APRIL 8 OBVIOUSLY THAT IS THE DOWNSIDE TO THE SCHWAB PROGRAM MR BORGEN SAYS YOU DON'T HAVE THE ASSETS UNDER MANAGEMENT DURING THIS PERIOD WHEN THOSE INVESTORS ARE IN MONEYMARKET FUNDS SCHWAB DOESN'T PERMIT MUTUALFUND COMPANIES TO OFFER THEIR OWN MONEYMARKET FUNDS WITHIN THE SCHWAB BROKERAGE SYSTEM WHICH OFFERS A TOTAL OF 700 MUTUAL FUNDS THIS GLITCH IN THE SCHWAB ALLIANCE UPSETS MUTUALFUND COMPANIES SOME OF WHICH SAY THAT THE MARKET DECLINE FROM MARCH 28 TO APRIL 8 WAS JUST A TRIAL RUN THE REAL PROBLEM COULD HAPPEN WHEN WE HIT A BEAR MARKET SAYS TWENTIETH CENTURY'S MR SNYDER DURING THE CRASH OF 1987 SOME MUTUALFUND COMPANIES SAY THEY WEATHERED THE STORM AS WELL AS THEY DID LARGELY BECAUSE INVESTORS WHO BAILED OUT OF STOCK FUNDS PLACED THEIR MONEY IN THE SAME COMPANY'S MONEYMARKET ACCOUNTS WITH THIS KIND OF PROGRAM FUND GROUPS HAVE LOST PERSONAL CONTACT WITH THEIR CUSTOMERS SAYS DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER IT MAKES INVESTING A LITTLE MORE IMPERSONAL AND THERE'S GOING TO BE LESS LOYALTY SCHWAB'S CUSTOMERS TEND TO BE QUICKER TO REDEEM SHARES THAN OTHER INVESTORS ON TWO OF THE HEAVIEST DAYS OF REDEMPTIONS MARCH 29 AND MARCH 30 JANUS FUNDS HAD 25 MORE REDEMPTIONS FROM SCHWAB CUSTOMERS THAN FROM ITS OWN SAYS JACK THOMPSON EXECUTIVE VICE PRESIDENT AT JANUS CAPITAL CORP IN DENVER BUT OVERALL HE AND OTHERS SAY THE FUND COMPANIES HAVE GAINED MUCH MORE FROM SCHWAB THAN THEY HAVE LOST OF THE 163 BILLION OF ASSETS AT JANUS FUNDS NEARLY 11 CAME IN THROUGH SCHWAB BROKERAGE ACCOUNTS THE SCHWAB WHIPLASH TENDED TO AFFECT SMALLER MOREAGGRESSIVE FUNDS FOR MARCH SCHWAB CUSTOMERS PULLED OUT A NET AMOUNT OF 10 MILLION FROM THE MONTGOMERY EMERGING MARKETS FUND WHICH NOW HAS ABOUT 618 MILLION IN ASSETS OTHER CUSTOMERS PUT MONEY INTO THE FUND DURING THAT PERIOD RESULTING IN TOTAL NET OUTFLOWS FOR THE FUND OF ONLY 24 MILLION ABOUT 30 TO 35 OF MONTGOMERY FUND'S 145 BILLION IN MUTUALFUND ASSETS CAME FROM SCHWAB CUSTOMERS IN THE FOURDAY PERIOD FROM MARCH 29 TO APRIL 4 MONTGOMERY FUNDS THE MUTUALFUND ARM OF SAN FRANCISCO BASED MONTGOMERY ASSET MANAGEMENT HAD NET OUTFLOWS OF 13 MILLION AND SCHWAB REDEMPTIONS REPRESENTED ROUGHLY 60 OF THOSE REDEMPTIONS SCHWAB'S ONESOURCE PROGRAM DOES HAVE SOME TRADING LIMITS SAYS TOM TAGGART A SCHWAB SPOKESMAN SCHWAB CUSTOMERS AREN'T ALLOWED TO HAVE MORE THAN FOUR SHORTTERM REDEMPTIONS THE SELLING OF A FUND WITHIN SIX MONTHS OF ITS PURCHASE DATE DURING ANY 12MONTH PERIOD WHEN YOU HAVE THE ACCESSIBILITY AND THE CONVENIENCE SOME PEOPLE ARE GOING TO BE MORE ACTIVE TRADERS SAYS MR TAGGART 9404220066 940422 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN NOW IT'S AN OCTOBER DEBUT FOR SHUTTLE SERVICES THAT WERE TO HAVE BEGUN THIS SUMMER FOR CARS AND PASSENGERS THROUGH THE TUNNEL UNDER THE ENGLISH CHANNEL CONNECTING FRANCE AND BRITAIN BUT LIMITED PASSENGERTRAIN SERVICE WILL START IN JULY THE EUROTUNNEL'S CEREMONIAL OPENING IS SCHEDULED FOR MAY 6 SHUTTLE TRAINS ARE TO BEGIN OPERATING IN JUNE FOR TRUCKS AND IN JULY FOR SPECIAL GUESTS THE BRITISH AND FRENCH NATIONAL RAIL COMPANIES STILL PLAN A JULY LAUNCH OF PASSENGER TRAINS THROUGH THE SOCALLED CHUNNEL THOUGH THESE SERVICES WON'T RUN AT FULL TILT UNTIL AUTUMN INITIALLY TRANSIT SERVICES IN THE 31MILE TUNNEL WERE TO HAVE BEGUN IN MAY 1993 BUT REPEATED DELAYS RESULTED FROM A DISPUTE SETTLED EARLIER THIS MONTH ABOUT CONSTRUCTION COSTS AND FROM EQUIPMENTDELIVERY PROBLEMS AND TESTING THE TOTAL OUTLAY FIRST ESTIMATED AT 731 BILLION HAS ESCALATED TO 1298 BILLION ACCORDING TO THE LATEST ESTIMATES SEVERAL THOUSAND PEOPLE ATTENDED VIETNAM'S FIRST US TRADE FAIR WHICH FOR MANY PROVIDED THE FIRST GLIMPSE OF AMERICAN GOODS AND TECHNOLOGY AS THE FOURDAY VIETNAMERICA EXPO OPENED IN HANOI 50 US COMPANIES DISPLAYED WARES RANGING FROM COMPUTERS TO FOODS AND CONSUMER PRODUCTS A NOVEMBER FAIR FOR ABOUT 100 US FIRMS IS PLANNED IN HO CHI MINH CITY VIETNAM'S COMMERCIAL CENTER THE US IN FEBRUARY LIFTED A 19YEAR ECONOMIC EMBARGO AGAINST COMMUNISTRULED VIETNAM WHICH IS DEVELOPING A MARKET ECONOMY SLOVAKIA'S MONTHOLD GOVERNMENT WHICH AIMS TO REVIVE STALLED ECONOMIC REFORMS AND PRIVATIZATIONS APPROVED THE SALE OF RIGHTS TO A PRIVATE COMPANY TO MANAGE A STATEOWNED TELEVISION STATION THE DEAL TO RUN SLOVAK TV CHANNEL 2 REQUIRES PARLIAMENTARY APPROVAL TERMS WEREN'T DISCLOSED BUT THE WINNER AMONG FIVE BIDDERS A COMPANY IDENTIFIED AS ESPE IS BELIEVED TO HAVE FOREIGN BACKING SLOVAKIA IS THE POORER EASTERN THIRD OF THE FORMER CZECHOSLOVAK FEDERATION WHICH SPLIT INTO TWO NATIONS IN JANUARY 1993 MEXICO ISSUED RULES FOR THE ENTRY OF FOREIGN COMPETITION IN THE BANKING SECTOR THE RULES EQUALIZE MINIMUM CAPITALIZATION FOR DOMESTIC AND OVERSEAS BANKS AND ALLOW FULLSERVICE FOREIGN OPERATIONS TO SET UP STARTING IN THE THIRD QUARTER ABOUT 25 TO 30 FOREIGN BANKS ARE EXPECTED TO ENTER THE MARKET RIVALING MEXICO'S RECENTLY PRIVATIZED COMMERCIAL BANKS WITH US AND EUROPEAN INSTITUTIONS OFFERING MORE EFFICIENT SERVICES IN TERMS OF MARKET SHARE FOREIGN FIRMS CAN HOLD A COMBINED 8 THIS YEAR A LIMIT THAT WILL RISE TO 15 IN 1999 NO FOREIGN BANK CAN CONTROL MORE THAN 15 OF THE TOTAL MARKET UNTIL 2000 HUNGARY AND SLOVAKIA EACH AGREED WITH JEWISH ORGANIZATIONS ON SETTLING CLAIMS FOR PROPERTY SEIZED FROM JEWS DURING THE WORLD WAR II PERIOD THE WORLD JEWISH CONGRESS SAID THE ACCORDS THE FIRST INVOLVING COUNTRIES IN THE FORMER EAST BLOC PROVIDE FOR RETURNING PROPERTY SEIZED BETWEEN 1939 AND 1945 OR COMPENSATING FORMER OWNERS OR THEIR HEIRS THE SLOVAK LIST INCLUDES MORE THAN 300 PROPERTIES IN HUNGARY ESTIMATES ARE INCOMPLETE THE SINOBRITISH LAND COMMISSION AGREED TO SET ASIDE MORE HONG KONG REAL ESTATE FOR RESIDENTIAL COMMERCIAL AND INDUSTRIAL DEVELOPMENT THE ACCORD IS AIMED AT HELPING TO COOL THE BRITISH COLONY'S PROPERTY MARKET WHERE PRICES HAVE SOARED FROM SPECULATION FOR EXAMPLE OFFICE SALE PRICES IN THE CENTRAL DISTRICT HAVE JUMPED 94 SINCE APRIL 1993 THE COMMISSION IS TO DESIGNATE 288 ACRES FOR SALE AT HONG KONG GOVERNMENT AUCTIONS IN THE YEAR ENDING NEXT MARCH 31 IN FISCAL 1994 IT ALLOTTED 314 ACRES GERMANY'S BUNDESBANK SAID PREMATURE RESTORATION OF NARROWER EUROPEAN MONETARY SYSTEM CRITERIA COULD RENEW MARKET TURMOIL THAT ALMOST WRECKED EUROPEAN UNIFICATION PLANS LAST JULY THE GERMAN CENTRAL BANK IN ITS 1993 ANNUAL REPORT REJECTED PROPOSALS FOR AN EARLY ATTEMPT AT RESTORING THE 225 FLUCTUATION BANDS FOR EMS CURRENCIES 15 RANGES WERE PUT IN PLACE LAST SUMMER FOR NOW A LONGER TEST PERIOD IS NEEDED TO OBSERVE HOW MARKET EXCHANGE RATES DEVELOP WITHOUT THE RELATIVELY NARROW GUARDRAILS THE BUNDESBANK SAID IN ADDITION THE RISKS OF RENEWED TURBULENCE SHOULDN'T BE UNDERESTIMATED IF MARKET PARTICIPANTS ARE AGAIN GIVEN AN INCENTIVE FOR SPECULATIVE ATTACKS AS IS TO BE FEARED IN A SYSTEM OF TIGHT BANDS AND CENTRAL BANK INTERVENTION REQUIREMENTS MORE IMPORTANT FOR THE EUROPEAN UNION TREATY TO UNIFY THE MONETARY SYSTEM AND ESTABLISH A COMMON CURRENCY BY 1999 ARE THE REQUIREMENTS FOR EU ECONOMIES THE BUNDESBANK SAID ONLY A HANDFUL OF EU MEMBERS ARE WITHIN THE ACCEPTABLE LIMITS ON GOVERNMENT DEBT AND DEFICITS A STRIKE BY ABOUT 20000 COAL WORKERS AT FOUR MINES IN POLAND CUT DELIVERIES TO PLANTS THAT PRODUCE 40 OF THE COUNTRY'S ENERGY THE SOLIDARITY UNION IS PROTESTING A GOVERNMENT PLAN TO CARVE THE MINING AND ENERGY SECTOR INTO SEVERAL DOZEN LOOSELY LINKED FIRMS GREECE'S PARLIAMENT PASSED A BILL SPECIFYING WHAT PEOPLE WORKING IN 1300 SELFEMPLOYMENT CATEGORIES SHOULD EARN AND WHAT THEIR TAX PAYMENTS ARE DOCTORS LAWYERS DENTISTS AND TRUCK DRIVERS ALL ARE ON STRIKE TO PROTEST THE MEASURE AIMED AT CURBING TAX EVASION 9404220065 940422 INTERNATIONAL BRIEF NEWS CORP MEDIA COMPANY TO SELL STAKE IN SOUTH CHINA MORNING POST NEWS CORP RUPERT MURDOCH'S AUSTRALIABASED INTERNATIONAL MEDIA COMPANY CONFIRMED LATE THURSDAY THAT IT HAS AGREED TO SELL ITS 151 STAKE IN SOUTH CHINA MORNING POST HOLDINGS LTD TO A SUBSIDIARY OF MALAYAN UNITED INDUSTRIES BHD FOR 104 BILLION HONG KONG DOLLARS US13458 MILLION NEWS CORP SAID IN A BRIEF STATEMENT TO THE AUSTRALIAN STOCK EXCHANGE THAT ITS TWO REPRESENTATIVES ON THE SOUTH CHINA MORNING POST BOARD WILL RESIGN AS DIRECTORS OF THE HONG KONG COMPANY SUBJECT TO CASH COMPLETION ON FRIDAY APRIL 22 NEWS CORP HAS MADE BIG PROFITS FROM ITS INVESTMENT IN SOUTH CHINA MORNING POST MR MURDOCH'S COMPANY ACQUIRED ALL OF THE HONG KONG NEWSPAPER PUBLISHER IN 1986 FOR JUST HK22 BILLION IT SOLD 49 IN 1990 ON THE HONG KONG STOCK MARKET FOR 226 BILLION AUSTRALIAN DOLLARS US161 BILLION ITS INTEREST SUBSEQUENTLY SLIPPED TO 50 FROM 51 A FURTHER 349 WAS SOLD LAST SEPTEMBER TO MALAYSIAN BUSINESSMAN ROBERT KUOK HOCK NIEN FOR ABOUT HK27 BILLION 9404220064 940422 BUSINESS BRIEF VALUEVISION INTERNATIONAL INC SHOPPING NETWORK CEASES BID FOR NATIONAL MEDIA CORP VALUEVISION INTERNATIONAL INC SAID IT TERMINATED ITS 1150ASHARE OR ABOUT 150 MILLION TENDER OFFER FOR NATIONAL MEDIA CORP THE MINNEAPOLISBASED HOMESHOPPING NETWORK SAID TWO OF THE OFFER'S CONDITIONS HADN'T BEEN MET IT SAID THERE WERE INACCURACIES IN NATIONAL MEDIA'S REPRESENTATIONS AND WARRANTIES IN THE MERGER AGREEMENT AND THAT THERE HAD ALSO BEEN ADVERSE REGULATORY DEVELOPMENTS INVOLVING NATIONAL MEDIA A PHILADELPHIA TELEVISION MARKETER OFFICIALS FOR BOTH COULDN'T BE REACHED ALTHOUGH THE WITHDRAWAL WASN'T DISCLOSED UNTIL AFTER THE MARKET'S CLOSE NATIONAL MEDIA SHARES CLOSED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AT 6875 DOWN 125 CENTS IN NASDAQ STOCK MARKET TRADING VALUEVISION SHARES CLOSED AT 575 UP 125 CENTS 9404220063 940422 BUSINESS BRIEF ITT CORP BID FOR ITALIAN HOTEL CHAIN IS TEMPORARILY PUT ON HOLD ITT CORP HAS PUT ON HOLD ITS 5305 MILLION BID FOR THE CIGA LUXURY HOTEL CHAIN BASED IN ITALY DUE IN PART TO A SHARP RUNUP IN CIGA'S SHARE PRICE ON THE MILAN STOCK EXCHANGE ITT HAD OFFERED ABOUT 740 LIRE 50 CENTS FOR EACH CIGA SHARE IN AN EFFORT TO ACQUIRE CONTROL OF THE COMPANY IN THE PAST TWO WEEKS HOWEVER CIGA'S SHARES HAVE RISEN FROM ABOUT 300 LIRE A SHARE TO MORE THAN 1200 LIRE A SHARE ITT ADDED THAT IT WOULD RECALL ITS ITT SHERATON REPRESENTATIVES FROM CIGA'S 35 HOTELS THE SHERATON STAFF HAD BEEN INVOLVED IN A COOPERATIVE TRANSITION EFFORT WE ARE HOPEFUL THAT THIS TRANSACTION CAN BE ULTIMATELY CONCLUDED IN THE WAY ORIGINALLY ANTICIPATED BY ALL PARTIES SAID RAND V ARASKOG CHAIRMAN OF ITT WHICH IS BASED IN NEW YORK ITT ADDED THAT RENOVATION EFFORTS TO RESTORE CIGA'S 5500ROOM CHAIN WOULD REQUIRE ABOUT 300 BILLION LIRE 200 MILLION 9404220062 940422 BUSINESS BRIEF TEXACO INC FIRM COMPLETES STEP ON SALE OF ITS CHEMICALS OPERATIONS TEXACO INC SAID IT COMPLETED THE FIRST STEP OF THE 106 BILLION SALE OF ITS CHEMICALS OPERATIONS RECEIVING 850 MILLION FROM PRIVATELY HELD HUNTSMAN CORP OF SALT LAKE CITY NOT YET CONCLUDED IS THE DIVESTMENT OF TEXACO'S LUBRICANT ADDITIVES BUSINESS TEXACO WHITE PLAINS NY SAID IT IS WORKING WITH A FINANCIAL AFFILIATE OF HUNTSMAN TO SELL THAT BUSINESS TO A THIRD PARTY IF THAT EFFORT FAILS HUNTSMAN FINANCIAL CORP WILL ACQUIRE THE LUBRICANTS BUSINESS BY SEPT 30 TEXACO SAID COMPLETING THE REMAINDER OF THE 106 BILLION TRANSACTION TEXACO AN OIL COMPANY ALSO SAID IT HAS GRANTED HUNTSMAN A TWOYEAR OPTION TO PURCHASE EITHER HALF OR ALL OF A TEXACO FACILITY UNDER CONSTRUCTION IN PORT NECHES TEXAS WHICH WILL PRODUCE AMONG OTHER THINGS METHYL TERTIARY BUTYL ETHER OR MTBE A GASOLINE ADDITIVE HUNTSMAN PAID 10 MILLION FOR THE OPTION IN SEPTEMBER TEXACO AGREED TO SELL ITS TEXACO CHEMICAL CO SUBSIDIARY AND SUBSTANTIALLY ALL OF ITS WORLDWIDE CHEMICAL OPERATIONS TO HUNTSMAN AN AFFILIATE OF JON M HUNTSMAN GROUP OF COS 9404220061 940422 BUSINESS BRIEF LSI LOGIC CORP FIRSTQUARTER EARNINGS ROSE 82 EXCEEDING EXPECTATIONS LSI LOGIC CORP CITING IMPROVED CONDITIONS IN SEVERAL MICROCHIP MARKETS SAID FIRSTQUARTER NET INCOME JUMPED 82 TOPPING ANALYSTS' EXPECTATIONS THE MILPITAS CALIF COMPANY EARNED 194 MILLION OR 37 CENTS A SHARE COMPARED WITH 106 MILLION OR 22 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 15 TO 194 MILLION FROM 169 MILLION ANALYSTS HAD EXPECTED THE COMPANY TO REPORT EARNINGS OF 31 CENTS TO 35 CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC LSI SHARES CLOSED AT 19125 UP 2125 OR 13 ON THE NEW YORK STOCK EXCHANGE LSI CITED A BETTER BUSINESS CLIMATE IN THE US AND STRONG DEMAND FOR ITS CHIPS FROM MAKERS OF COMPUTER WORKSTATIONS NETWORKING EQUIPMENT AND DIGITAL VIDEO HARDWARE 9404220060 940422 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER CLINTONITES TALK DOWN THE ECONOMY TO TRY TO QUELL FEARS OF OVERHEATING USUALLY UPBEAT COMMERCE SECRETARY BROWN SAYS THE SURPRISE WIDENING OF THE TRADE DEFICIT DAMPED FIRSTQUARTER GROWTH TREASURY CHIEF BENTSEN WARNS THAT THE RISE IN LONGTERM INTEREST RATES COULD HURT FUTURE GROWTH WHITE HOUSE ECONOMIST TYSON ARGUES THAT INFLATION RISKS REMAIN SLIM PRIVATELY SOME CLINTON OFFICIALS FEAR THE FED WILL OVERREACT AND STRANGLE THE RECOVERY SOME FED BANK PRESIDENTS INSIST THE ECONOMY NOW CLOSE TO FULL EMPLOYMENT STILL MUST BE SLOWED TO AVOID A SPURT OF INFLATION BUT THE WHITE HOUSE HOPES CLINTON'S PROBABLE FED PICKS ECONOMISTS ALAN BLINDER AND JANET YELLEN WILL COUNTER THAT ARGUMENT FORMER FED OFFICIALS FRET THAT NEITHER HAS EXPERIENCE IN FINANCIAL MARKETS A SHORTCOMING AT THE FED THESE DAYS CLINTON POLITICAL GURU JAMES CARVILLE JOKES THAT IF FIVE OF SIX ECONOMIC INDICATORS ARE GOOD NOW YOU FOCUS ON THE ONE THAT IS BAD HOPES RISE FOR ISRAELSYRIA PEACE PROGRESS ON CHRISTOPHER'S MIDEAST TRIP AIDES TO THE SECRETARY OF STATE EXPECT MOVEMENT NEXT WEEK AFTER A LONG STALL ISRAEL'S RABIN HAS TOLD THE US HE IS READY TO DEAL WITH DAMASCUS EVEN THOUGH PALESTINIAN NEGOTIATIONS AREN'T COMPLETE US OFFICIALS SEE HIS COMMENT YESTERDAY THAT HE IS PREPARED TO DISMANTLE JEWISH SETTLEMENTS ON THE GOLAN HEIGHTS TO ACHIEVE PEACE WITH SYRIA AS A SIGNAL OF NEW ACTION SYRIA'S ASSAD TELLS THE US HE IS EAGER TO RESUME TALKS WITH ISRAEL BUT CHRISTOPHER HAS SOME REPAIR WORK TO DO ASSAD IS MIFFED THAT THE US AFTER PREPARING TO REMOVE SYRIA FROM ITS LIST OF NATIONS THAT COOPERATE WITH DRUG TRAFFICKERS BACKED DOWN AFTER PROTESTS IN THE US A PLOISRAEL DEAL ISN'T LIKELY IN TIME FOR CHRISTOPHER TO ATTEND A SIGNING BUT HE MIGHT RETURN IN MAY ROLL OF THE DICE NEW FUNDING IDEAS FOR WELFARE DON'T RULE OUT A GAMBLING TAX ADMINISTRATION OFFICIALS ESTIMATE THAT ALTERNATIVES SUCH AS A CUT IN TAX DEFERRALS FOR INTEREST ON INDIVIDUAL ANNUITIES COULD BRING IN 1 BILLION OVER FIVE YEARS BUT THE INSURANCE INDUSTRY SAYING THAT THE TAX DEFERRAL FOR 23 MILLION INDIVIDUAL ANNUITY HOLDERS ENCOURAGES SAVING FLOODS BUDGET CHIEF PANETTA'S OFFICE WITH COMPLAINTS EVEN IF THE IDEA IS ADOPTED THOUGH A TAX ON NET REVENUES OF GAMBLING ESTABLISHMENTS STILL MAY BE NEEDED TO PAY FOR EVEN A STRIPPEDDOWN WELFARE OVERHAUL THE PROPOSED TAX WHICH WOULD RAISE 31 BILLION OVER FIVE YEARS SURELY WILL BE NEEDED IF CLINTON OPTS FOR A FULLER PROGRAM WITH CHILD CARE FOR THE WORKING POOR AND TEENAGEPREGNANCY PREVENTION HHS CHIEF SHALALA PUSHES HARD FOR THE FULL PROGRAM TELLING CLINTON WELFARE REFORM SHOULDN'T BE PAID FOR BY CUTS IN ANTIPOVERTY PROGRAMS ALONE CLINTON PLANS A POTENTIALLY DECISIVE MEETING ON A SUPREME COURT CHOICE AS EARLY AS TODAY A BLACK WOMAN NEW YORK APPEALS COURT JUDGE AMALYA KEARSE MOVES UP HEALTH QUESTIONS ARISE ABOUT FEDERAL APPEALS JUDGE RICHARD ARNOLD BUT CLINTON DOESN'T DISMISS THE FELLOW ARKANSAN HE ASKS FOR MORE ON FORMER VIRGINIA GOV BALILES ZULU REPUBLICANS A DOZEN GOP CAMPAIGN CONSULTANTS GOT FRANTIC CALLS TUESDAY ASKING THEM TO FLY TO SOUTH AFRICA RIGHT AWAY TO HELP ZULU LEADER BUTHELEZI'S PARTY RUN IN THE NATION'S FIRST MULTIRACIAL ELECTIONS NEXT WEEK NOW THAT HE HAS ENDED HIS BOYCOTT OF THE VOTE ALL SAID NO TIME IS TOO SHORT NO OLLIE THE VIRGINIA CHAPTER OF ROSS PEROT'S UNITED WE STAND BLASTS OLIVER NORTH WHO ONCE APPLIED TO WORK AT PEROT'S COMPANY FOR REFUSING ITS INVITATION TO DEBATE SENATE GOP RIVAL JAMES MILLER THE GROUP PROMISES TO HOLD THE DEBATE WITH MILLER AND AN EMPTY CHAIR DEJA VU GENERAL SERVICES ADMINISTRATOR ROGER JOHNSON WILL REIMBURSE THE GOVERNMENT FOR WHAT HIS STAFF DETERMINED WAS PERSONAL USE OF FEDERAL RESOURCES A TOTAL OF 25673 FOR 39 OVERNIGHT PIECES OF MAIL AND 184 LONGDISTANCE PHONE CALLS HE HAD ALREADY REPAID THE GOVERNMENT FOR PERSONAL TRAVEL NAFTA FIZZLES AS A CAMPAIGN ISSUE DESPITE LABOR'S VOW TO TARGET BACKERS ONLY TWO HOUSE DEMOCRATS OHIO'S MANN AND MISSISSIPPI'S PARKER ARE JEOPARDIZED BY VOTES FOR THE TRADE PACT LABOR FAILS TO EVEN GENERATE A PRIMARY CHALLENGER TO NAFTABACKER REP FARR FELLOW CALIFORNIA REP FAZIO ATTACKED FOR HIS PRONAFTA VOTE SAYS A POLL NOW SHOWS 2TO1 SUPPORT FOR THE ACCORD IN HIS DISTRICT ON THE OTHER HAND ANTINAFTA REP MYERS OF INDIANA ALREADY IN TROUBLE IN HIS GOP PRIMARY LOSES THE ENDORSEMENT OF THE PRONAFTA FARM BUREAU DEMOCRATIC REP FILNER OF CALIFORNIA DRAWS A GOP FOE A HISPANIC BUSINESSWOMAN ANGRY ABOUT HIS OPPOSITION TO THE ACCORD LABOR PLAYS DOWN ITS NAFTA THREAT WE ARE GOING TO EVALUATE ALL THE ISSUES ESPECIALLY HEALTH CARE SAYS AFLCIO LOBBYIST ROBERT MCGLOTTEN MINOR MEMOS YOUNG MALE WHITE HOUSE AIDES FLASH THEIR UNDERWEAR TOPS AFTER THE BRIEFSVSBOXERS QUERY TO CLINTON ON MTV ALL THE ARKANSANS ARE BRIEFS MEN DEFENSEINDUSTRY HUMOR PAINTS THIS PICTURE OF THE FUTURE MERGED NORTHROP AND GRUMMAN CHANGE THEIR NAME TO NORMAN THEN BUY ANOTHER BIG CONTRACTOR TO BECOME NORMAN ROCKWELL THE TRANSPORTATION DEPARTMENT AT A NEWS CONFERENCE ON A ROADSAFETY CAMPAIGN HANDS OUT PEZ CANDY CONTAINERS IN THE SHAPE OF A TRUCK 9404220059 940422 BUSINESS BRIEF DYNATECH CORP ELECTRONIC PRODUCTS MAKER TO TAKE 50 MILLION CHARGE DYNATECH CORP SAID IT WILL TAKE A 50 MILLION CHARGE FOR THE FOURTH QUARTER ENDED MARCH 31 AS IT REORGANIZES AND PLANS TO SELL BUSINESSES THAT ACCOUNT FOR ABOUT 20 OF SALES DYNATECH OF BURLINGTON MASS SAID THE CHARGE AND LOSSES DUE TO DISCONTINUED OPERATIONS WILL CAUSE A NET LOSS EQUAL TO 315 A SHARE FOR THE YEAR THE COMPANY SAID IT EXPECTS TO REPORT EARNINGS FROM CONTINUING OPERATIONS OF ABOUT 67 CENTS A SHARE IN FISCAL 1993 ENDED MARCH 31 DYNATECH REPORTED EARNINGS OF 164 MILLION OR 179 A SHARE ON SALES OF 528 MILLION DYNATECH SAID RESTRUCTURING WILL SAVE ABOUT 12 MILLION A YEAR AND ALLOW IT TO INVEST IN DEVELOPING COMMUNICATIONS EQUIPMENT DYNATECH SAID IT WILL FOCUS ITS BUSINESS ON EQUIPMENT FOR VOICE VIDEO AND DATA COMMUNICATIONS IT SAID IT EXPECTS THE RESTRUCTURING TO TAKE 18 MONTHS 9404220058 940422 TECHNOLOGY AT&T CITES POTENTIAL USE OF COMPANY'S NEW LASER NEW YORK AT&T BELL LABORATORIES SAID ITS RESEARCHERS INVENTED A FUNDAMENTALLY NEW TYPE OF SEMICONDUCTOR LASER THAT COULD BE USED SOMEDAY TO MONITOR AIR POLLUTION AND MANUFACTURING QUALITY CALLED A QUANTUM CASCADE LASER THE DEVICE CAN BE MADE TO EMIT LIGHT AT A SPECIFIC WAVELENGTH AT NEARLY ANY POINT IN THE MID TO FAR INFRARED SPECTRUM SAID THE RESEARCH UNIT OF AT&T CORP THIS CUSTOMIZATION IS DONE BY VARYING THE THICKNESS OF THE SEMICONDUCTOR MATERIAL WHILE IT IS BEING MADE BELL LABS SAID SUCH LASERS COULD BE PLACED NEAR INDUSTRIAL SMOKESTACKS AND LANDFILLS TO DETECT TOXIC GASES OR INSTALLED IN AUTOMOBILES FOR COLLISION AVOIDANCE DURING FOGS RESEARCHERS SAID ANOTHER USE MIGHT BE MEASURING THE LIGHTABSORPTION PROPERTIES OF CERTAIN MATERIALS CONVENTIONAL LASERS SUCH AS LIGHTWAVE COMMUNICATIONS DEVICES AND THOSE USED IN COMPACTDISK PLAYERS OPERATE AT NEARINFRARED TO VISIBLE LIGHT BELL LABS SAID 9404220057 940422 BUSINESS BRIEF TEXTRON INC FISCAL FIRSTQUARTER PROFIT ROSE 20 ON REVENUE GAIN TEXTRON INC CITING STRONG RESULTS IN ITS AIRCRAFT AND AUTOMOTIVE BUSINESSES SAID FISCAL FIRSTQUARTER NET INCOME INCREASED 20 ON AN 11 REVENUE RISE IN THE QUARTER ENDED APRIL 2 THE PROVIDENCE RI COMPANY HAD NET INCOME OF 100 MILLION OR 110 A SHARE COMPARED WITH EARNINGS OF 83 MILLION OR 92 CENTS A SHARE A YEAR EARLIER REVENUE ROSE TO 241 BILLION FROM 217 BILLION TEXTRON SAID HIGHER US GOVERNMENT AND FOREIGN MILITARY AIRCRAFT SALES IMPROVED RESULTS AT ITS BELL HELICOPTER UNIT WHILE SALES AT TEXTRON ACUSTAR PLASTICS ACQUIRED LAST MAY HELPED INCREASE PROFITS IN THE AUTOMOTIVE DIVISION TEXTRON SAID ITS FINANCIALSERVICES BUSINESS ALSO REPORTED STRONG RESULTS IN PART DUE TO A LOWER AVERAGE COST OF BORROWED FUNDS REFLECTING THE BENEFITS OF RECENT REFINANCINGS OF HIGHCOUPON DEBT THE COMPANY SAID PROFIT AT ITS SYSTEMSANDCOMPONENTS BUSINESS FELL ON WEAKNESS IN THE COMMERCIAL AEROSPACE MARKET AND LOWER GOVERNMENT DEFENSE SPENDING IN LATE NEW YORK STOCK EXCHANGE TRADING TEXTRON STOCK WAS UP 875 CENTS AT 5325 9404220056 940422 BLAST AT NATURALGAS PLANT IN TEXAS INJURES 2 WORKERS MONT BELVIEU TEXAS AN EXPLOSION AND FIRE DAMAGED A NATURALGAS LIQUIDS FRACTIONATION FACILITY HERE LATE WEDNESDAY INJURING TWO WORKERS THE FACILITY IN WHICH NATURALGAS LIQUIDS ARE SEPARATED INTO PRODUCTS SUCH AS PROPANE AND BUTANE IS OPERATED BY GULF COAST FRACTIONATORS GULF COAST FRACTIONATORS IS IN TURN OWNED 3875 BY TRIDENT NGL HOLDING INC OF THE WOODLANDS TEXAS 3875 BY MITCHELL ENERGY & DEVELOPMENT CORP ALSO OF THE WOODLANDS AND 225 BY CONOCO INC A UNIT OF DUPONT CO WILMINGTON DEL TRIDENT SAID THE TWO EMPLOYEES WHO WERE INJURED IN THE EXPLOSION AND FIRE REMAIN HOSPITALIZED THE EXTENT OF THEIR INJURIES IS NOT KNOWN THE COMPANY SAID NEITHER THE CAUSE OF THE EXPLOSION NOR THE EXTENT OF THE DAMAGE HAS BEEN DETERMINED BUT THE DAMAGE APPEARS RESTRICTED TO THE PLANT SITE A TRIDENT SPOKESMAN SAID THE FACILITY WILL REMAIN SHUT DOWN FOR AN UNDETERMINED TIME WHILE A PROBE INTO THE CAUSE OF THE EXPLOSION AND THE EXTENT OF THE DAMAGE IS COMPLETED THE FACILITY HAD AN 80000BARREL CAPACITY EACH PARTNER HAS APPROPRIATE INSURANCE COVERAGE ON ITS INTEREST IN THE FACILITY TRIDENT SAID 9404220055 940422 MARKETING BRIEF NOTED WHO'S NEWS FRANCIS X FARRELL 35 ADVERTISING DIRECTOR OF THE SPORTING NEWS A SPORTS WEEKLY PUBLISHED BY TIMES MIRROR CO'S TIMES MIRROR MAGAZINES WAS NAMED PUBLISHER OF THE PUBLICATION HE SUCCEEDS NICHOLAS H NILES PRESIDENT OF THE SPORTING NEWS PUBLISHING CO 9404220054 940422 TECHNOLOGY BRIEF GENENTECH INC COMPANY ACCUSES CENTOCOR OF INFRINGING ON ITS PATENT GENENTECH INC SAID IT FILED SUIT IN FEDERAL COURT IN SAN FRANCISCO AGAINST CENTOCOR INC OF MALVERN PA ALLEGING PATENT INFRINGEMENT GENENTECH A BIOTECHNOLOGY COMPANY SAID CENTOCOR'S PRODUCT CENTOREX LICENSED TO ELI LILLY & CO INFRINGES ON GENENTECH'S PATENT COVERING ANTIBODY TECHNOLOGY IN MALVERN PA CENTOCOR OFFICIALS SAID THEY WERE DISAPPOINTED BY THE FILING CONSIDERING THE COMPANY'S HISTORICALLY POSITIVE RELATIONSHIP WITH GENENTECH THE BIOTECHNOLOGY CONCERN SAID IT HAS BEEN AWARE OF THE CABILLY PATENT FOR SEVERAL YEARS AND DOESN'T BELIEVE IT HAS INFRINGED ANY VALID CLAIMS NOR USED TECHNOLOGY COVERED UNDER THE PATENT BASICALLY WE ARE JUST TRYING TO CREATE INNOVATIVE PRODUCTS THAT FULFILL PEOPLE'S CURRENTLY UNMET MEDICAL NEEDS THE COMPANY SAID IN A STATEMENT CENTOCOR SAID IT WILL RESPOND TO THE SUIT AFTER REVIEWING THE PAPERWORK FILED 9404220053 940422 BUSINESS BRIEF MCKESSON CORP COMPANY POSTS 20 INCREASE IN PROFIT FOR FOURTH QUARTER MCKESSON CORP HELPED BY STRONG SALES AS WELL AS REDUCED COSTS REPORTED A 20 JUMP IN PROFIT FOR THE FISCAL FOURTH QUARTER NET INCOME ROSE TO 404 MILLION OR 89 CENTS A SHARE FOR THE PERIOD ENDED MARCH 31 UP FROM 338 MILLION OR 74 CENTS A SHARE A YEAR EARLIER REVENUE INCREASED 8 TO 318 BILLION FROM 295 BILLION THE RESULTS FOR THE SAN FRANCISCO DRUG DISTRIBUTOR AND HEALTHCARE SERVICES CONCERN FELL IN THE HIGH RANGE OF ANALYSTS' EXPECTATIONS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY MCKESSON SHARES JUMPED 1125 TO 64125 FOR THE YEAR MCKESSON SAID NET INCOME ROSE 19 TO 1362 MILLION OR 3 A SHARE FROM 1147 MILLION OR 251 A SHARE REVENUE ROSE 7 TO 1243 BILLION FROM 1167 BILLION 9404220052 940422 BUSINESS BRIEF NUEVO ENERGY CO COMPANY COMPLETES PACT WITH SWISS BANKING CONCERN NUEVO ENERGY CO SAID IT HAS COMPLETED A 30 MILLION FINANCING AGREEMENT UNDER WHICH PAYMENTS DUE COME DIRECTLY FROM NATURALGAS PRODUCTION VOLUMES THE AGREEMENT WITH BANQUE PARIBAS A SWISS BANKING CONCERN ALLOWS FOR ADVANCES AFTER THE SUCCESSFUL COMPLETION OF QUALIFYING WELLS NUEVO'S SUBSEQUENT PRODUCTION PAYMENTS NATURALGAS VOLUMES APPLIED TO THE DEBT WILL BE CALCULATED BASED ON THE SIZE OF THE ADVANCE NATURALGAS PRICES AND INTEREST RATES NUEVO A HOUSTON ENERGY CONCERN SAID IT PLANS TO USE THE ARRANGEMENT FOR CAPITAL FOR DEVELOPMENT DRILLING IN THE OAK HILL FIELD IN EAST TEXAS 9404220051 940422 BENEFITS OF SMOKING BAN OUTWEIGH COSTS EPA SAYS WASHINGTON A PROPOSED BAN ON SMOKING IN VIRTUALLY ALL NONRESIDENTIAL BUILDINGS WOULD YIELD NET ANNUAL BENEFITS TO SOCIETY OF 39 BILLION TO 72 BILLION THE ENVIRONMENTAL PROTECTION AGENCY SAID AN EPA COSTBENEFIT ANALYSIS OF A BILL PROPOSED BY REP HENRY WAXMAN D CALIF THAT IS AWAITING SUBCOMMITTEE VOTE COUNTED AMONG THE BENEFITS OF THE PLAN REDUCED DEATHS AND ILLNESSES SUCH AS RESPIRATORYTRACT INFECTIONS AMONG NONSMOKERS MAINLY CHILDREN TOTAL SAVINGS AS MUCH AS 71 BILLION REDUCED COSTS FOR BUILDING MAINTENANCE SUCH AS EMPTYING ASHTRAYS AS MUCH AS 8 BILLION AND SAVINGS IN SMOKINGRELATED FIRES AS MUCH AS 700 MILLION COSTS IMPOSED BY THE PROPOSAL THE EPA SAID WOULD INCLUDE IMPLEMENTING SMOKING POLICIES AS MUCH AS 500 MILLION CONSTRUCTION OF SPECIAL SMOKING LOUNGES AS MUCH AS 36 BILLION AND ENFORCEMENT AS MUCH AS 400 MILLION THERE'S NOTHING THAT I'VE EVER SEEN THAT WOULD LEAD TO SUCH HUGE NET BENEFITS REP WAXMAN SAID AT A NEWS CONFERENCE TO ANNOUNCE THE FINDINGS THOMAS LAURIA A SPOKESMAN FOR THE TOBACCO INSTITUTE WHICH REPRESENTS CIGARETTE MANUFACTURERS SAID OF THE REPORT THAT HIS GROUP DISAGREED WITH SOME OF THEIR BASIC ASSUMPTIONS SUCH AS THAT MILLIONS OF PEOPLE WILL QUIT SMOKING BECAUSE OF THE NEW RESTRICTIONS HE SAID HIS GROUP WAS REVIEWING THE FINDINGS 9404220050 940422 TECHNOLOGY BREAST CANCER DEATH RATE JUMPED FOR BLACK WOMEN ATLANTA THE FATALITY RATE AMONG BLACK WOMEN WITH BREAST CANCER ROSE 21 IN THE 1980S DESPITE PROGRESS IN DETECTING AND TREATING THE DISEASE ACCORDING TO A NEW STUDY A REPORT TO BE PUBLISHED TODAY BY THE CENTERS FOR DISEASE CONTROL AND PREVENTION NOTES THAT FROM 1980 TO 1991 THE DEATH RATE FOR BREAST CANCER AMONG WHITE WOMEN REMAINED ALMOST CONSTANT INCREASING LESS THAN 1 BUT THE RATE AMONG BLACK WOMEN JUMPED 21 TO ALMOST 32 PER 100000 WOMEN FROM ABOUT 26 THE RATE FOR OTHER RACES INCREASED 29 TO MORE THAN 12 PER 100000 FROM ALMOST 10 RESEARCH SHOWS THAT FACTORS THAT INFLUENCE THE DISPARITY INCLUDE SOCIOECONOMIC CLASS STAGE OF DISEASE AT DIAGNOSIS ACCESS TO HEALTH CARE CHILDBIRTH STATUS AND AGE AT MENOPAUSE IN 1991 THE MOST RECENT YEAR FOR WHICH FIGURES ARE AVAILABLE 43583 WOMEN DIED FROM BREAST CANCER THE SECONDLEADING CAUSE OF CANCER DEATH AMONG WOMEN AFTER LUNG CANCER THE OVERALL DEATH RATE WAS 27 PER 100000 WOMEN 9404220049 940422 INTERNATIONAL BRIEF KAWASAKI STEEL CORP COMPUTERCHIP MAKER SIARC SIGNS MASSPRODUCTION PACT KAWASAKI STEEL CORP SIGNED AN AGREEMENT WITH US COMPUTERCHIP DEVELOPER SIARC FOR TECHNOLOGY THAT WILL ALLOW IT TO MASSPRODUCE CELLBASED ARRAY CHIPS THAT COULD BE USED FOR MULTIMEDIA PRODUCTS A COMPANY OFFICIAL SAID SUCH CHIPS HAVE CAPACITY AND FLEXIBILITY TO BE USED IN DIGITAL TELEVISIONS AND OTHER ADVANCED COMMUNICATIONS SAID THE OFFICIAL FOR KAWASAKI JAPAN'S THIRDLARGEST STEELMAKER PRODUCTION IS EXPECTED TO START AT KAWASAKI STEEL'S CHIPMAKING FACILITY IN UTSUNOMIYA JAPAN WITHIN THE YEAR A COMPANY SPOKESWOMAN SAID THE KAWASAKI STEEL SPOKESWOMAN SAID THE COMPANY DOESN'T HAVE AN ESTIMATE FOR PRODUCTION VOLUMES SAYING ONLY THAT THE COMPANY EXPECTS TO RECEIVE ORDERS FOR THE CHIPS SOON AND WILL DETERMINE PRODUCTION VOLUMES BASED ON DEMAND 9404220048 940422 BUSINESS BRIEF RYDER SYSTEM INC COMPANY SWINGS FROM LOSS TO POST 237 MILLION NET RYDER SYSTEM INC BENEFITING FROM STRONG PERFORMANCES IN ITS TWO PRIMARY BUSINESSES REPORTED FIRSTQUARTER NET INCOME OF 237 MILLION COMPARED WITH A YEAREARLIER LOSS OF 12 MILLION THE MIAMIBASED TRANSPORTATIONSERVICES CONCERN SAID EARNINGS PER SHARE IN THE QUARTER TOTALED 30 CENTS COMPARED WITH A LOSS OF FIVE CENTS A SHARE A YEAR EARLIER THE 1993 QUARTER INCLUDED AN AFTERTAX CHARGE OF 254 MILLION OR 33 CENTS A SHARE RESULTING FROM AN ACCOUNTING CHANGE EXCLUDING THE CHARGE EARNINGS FROM CONTINUING OPERATIONS ROSE 19 REVENUE INCREASED 7 TO 107 BILLION FROM 9997 MILLION RYDER'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE M ANTHONY BURNS ATTRIBUTED PART OF THE GAINS IN THE QUARTER TO A STRONG PERFORMANCE FROM THE COMPANY'S AUTOMOTIVECARRIER DIVISION WHERE PRETAX PROFIT DOUBLED TO 82 MILLION 9404220047 940422 TECHNOLOGY MANY TWOYEAROLDS FAIL TO GET MEASLES VACCINE ATLANTA ALMOST ONE IN FIVE OF THE NATION'S TWOYEAROLDS STILL AREN'T VACCINATED AGAINST MEASLES DESPITE AN EPIDEMIC IN THE EARLY 1990S THAT CLAIMED MORE THAN 100 LIVES A STUDY TO BE PUBLISHED TODAY BY THE CENTERS FOR DISEASE CONTROL AND PREVENTION FOUND THAT 11 MILLION CHILDREN REQUIRE A DOSE OF MEASLES VACCINE A FIGURE THAT CREATES THE POTENTIAL FOR A MAJOR OUTBREAK OF THE ILLNESS ACCORDING TO HEALTH OFFICIALS BETWEEN 1989 AND 1991 11000 CHILDREN WERE HOSPITALIZED WITH COMPLICATIONS FROM MEASLES AND 132 DIED THE CDC'S REPORT FOUND MIXED SUCCESS IN THE PAST YEAR IN IMMUNIZING CHILDREN THE PERCENTAGE OF TWOYEAROLDS PROTECTED AGAINST MEASLES FOR INSTANCE SLIPPED TO 808 IN THE FIRST SIX MONTHS OF 1993 FROM 825 IN 1992 BUT IMMUNIZATIONS FOR THREE OTHER CHILDHOOD DISEASES ROSE TO 50 FROM 28 FOR HEMOPHILUS B TO 78 FROM 72 FOR POLIO AND TO 87 FROM 83 FOR DTP DIPHTHERIA TETANUS AND PERTUSSIS OR WHOOPING COUGH FEDERAL HEALTH OFFICIALS RECOMMEND THAT YOUNGSTERS RECEIVE ALL MAJOR IMMUNIZATIONS BY THE TIME THEY REACH THEIR SECOND BIRTHDAYS THE PROPORTION OF CHILDREN WHO WERE FULLY IMMUNIZED THE CDC SAID INCREASED TO 65 LAST YEAR FROM 55 IN 1992 9404220046 940422 MARKETING & MEDIA RJR NET ROSE 20 IN FIRST QUARTER TOPPING FORECASTS BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RJR NABISCO HOLDINGS CORP TURNED IN STRONGERTHANEXPECTED FIRSTQUARTER NET INCOME PARTLY BECAUSE LAST YEAR'S COSTCUTTING MEASURES KICKED IN THE TOBACCO AND FOOD CONCERN REPORTED NET INCOME OF 195 MILLION OR 12 CENTS A SHARE UP 20 FROM NET OF 163 MILLION OR 13 CENTS A SHARE IN THE YEAREARLIER QUARTER THE RECENT QUARTER INCLUDED A 1 MILLION GAIN AND THE YEAREARLIER QUARTER INCLUDED A 47 MILLION CHARGE BOTH RELATED TO THE EARLY RETIREMENT OF DEBT THE PERSHARE RESULTS REFLECT ADDITIONAL PREFERREDSTOCK DIVIDENDS PAID OUT IN THE RECENT QUARTER REVENUE DECLINED 45 TO 357 BILLION FROM 374 BILLION WITHOUT THE SPECIAL ITEMS PROFIT WOULD HAVE DECLINED TO 194 MILLION FROM 210 MILLION YET THE BOTTOM LINE SURPASSED ANALYSTS' CONSENSUS EXPECTATIONS WHICH WERE NINE CENTS A SHARE ACCORDING TO FIRST CALL IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING RJR NABISCO'S COMMON STOCK CLOSED UNCHANGED AT 625 THE COMPANY REPORTED 186 BILLION IN TOTAL TOBACCO SALES DOWN 11 FROM THE 1993 FIRST QUARTER TOTAL FOOD SALES WHICH INCLUDE POPULAR BRANDS SUCH AS OREO COOKIES AND TRISCUIT CRACKERS INCREASED 49 TO 171 BILLION THE COMPANY SAID THAT EVEN THOUGH INTERNATIONAL OPERATING PROFIT INCREASED 13 OVERALL TOBACCO OPERATING PROFIT DECLINED 13 TO 572 MILLION BUT RJR NABISCO NOTED THAT 1993'S FIRSTQUARTER RESULTS DON'T REFLECT THE HEATED PRICE WAR THAT STARTED LATER THAT YEAR AND SENT DOMESTIC TOBACCO MARGINS SKIDDING DOWNWARD THE MARGINS HAVE REBOUNDED TO NEARLY EQUAL 1993 FIRSTQUARTER LEVELS PRIMARILY FROM THE RESTRUCTURING AND DOWNSIZING MOVES THE COMPANY SAID BOTH OUR INTERNATIONAL AND DOMESTIC TOBACCO RESULTS SHOW CLEAR SIGNS OF STRENGTHENING AND A TREND TOWARDS RENEWED PROFIT GROWTH SAID CHARLES M HARPER CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9404220045 940422 BUSINESS BRIEF SKANDINAVISKA ENSKILDA BANKEN SWEDISH CONCERN TO SET UP UNIT FOR BANKING BY PHONE SKANDINAVISKA ENSKILDA BANKEN PLANS TO SET UP A SUBSIDIARY TO CAPTURE A SHARE OF THE GROWING BANKINGBYPHONE MARKET THE BANKING GROUP SAID SESAM TELEFONBANKEN SCHEDULED FOR LAUNCH IN OCTOBER WILL OFFER PRIVATE CUSTOMERS A WIDE RANGE OF BANKING SERVICES OVER THE PHONE THE BANK WILL BE AN INDEPENDENT UNIT IN THE SE BANKEN BANKING GROUP AND SE BANKEN SAID IT HOPES IT WILL HELP IN ATTRACTING NEW CUSTOMERS TO THE BANK ALTHOUGH SEVERAL SWEDISH BANKS HAVE SOME SORT OF BANKINGBYPHONE SERVICES SE BANKEN WILL BE FIRST IN OFFERING A COMPLETE RANGE OF PRODUCTS SESAM TELEFONBANKEN WILL BE OPEN 24 HOURS A DAY EVERY DAY OF THE YEAR 9404220044 940422 INTERNATIONAL BRIEF SMITHKLINE BEECHAM PLC CUT IN ADMINISTRATIVE COSTS BOOSTED PRETAX PROFIT 15 UK HEALTH AND HOUSEHOLD PRODUCTS GROUP SMITHKLINE BEECHAM PLC SAID ITS FIRSTQUARTER PRETAX PROFIT ROSE 15 TO 353 MILLION 5265 MILLION FROM 307 MILLION SALES FELL 3 TO 148 BILLION SMITHKLINE OVERCAME THE SALES DROP CAUSED BY THE SALE OF ITS PERSONALCARE BUSINESS BY CUTTING ITS SELLING GENERAL AND ADMINISTRATIVE EXPENSES 13 TO 506 MILLION THE COST OF PRODUCING ITS GOODS AND RESEARCH AND DEVELOPMENT SPENDING WERE BOTH SLIGHTLY BELOW COMPARABLE FIGURES IN THE FIRST QUARTER OF 1993 SMITHKLINE SAID THAT ITALY'S CHANGE IN REIMBURSEMENT PROCEDURES LED TO THE DELISTING OF MANY DRUGS AND A 64 SALES DECLINE THERE THE GROUP SAID THAT EXCLUDING ITALY WORLDWIDE DRUG SALES ROSE 5 AT COMPARABLE EXCHANGE RATES AGAINST A VERY STRONG 1993 FIRST QUARTER SMITHKLINE ALSO SAID A LESSSEVERE FLU SEASON IN THE FIRST QUARTER DAMPED PURCHASES OF ANTIBIOTICS 9404220043 940422 GLOBEX PARTNERS APPROVE NEW OPERATING AGREEMENT CHICAGO THE REMAINING PARTNERS IN GLOBEX THE AROUNDTHEWORLD ELECTRONIC FUTURES TRADING SYSTEM LAUNCHED TWO YEARS AGO SAID THEY SIGNED A NEW AGREEMENT WHICH THEY HOPE WILL ENCOURAGE OTHER FUTURES EXCHANGES TO JOIN THE PARTNERSHIP CHICAGO MERCANTILE EXCHANGE REUTERS HOLDINGS PLC AND FRANCE'S FUTURES EXCHANGE THE MARCHE A TERME INTERNATIONAL DE FRANCE SAID THE PACT ESTABLISHES A NEW STRUCTURE FOR GLOBEX GIVING EACH EXCHANGE AN EQUAL VOICE IN GOVERNANCE IT TAKES EFFECT MAY 1 JACK SANDNER CHAIRMAN OF THE CME AND OF GLOBEX SAID THE PARTNERS ARE IN TALKS WITH THE LONDON INTERNATIONAL FINANCIAL FUTURES EXCHANGE AND GERMANY'S DEUTSCHE TERMINBORSE BASED IN FRANKFURT AND ARE OPTIMISTIC THAT ONE OR BOTH OF THOSE EXCHANGES WILL DECIDE TO JOIN GLOBEX THE CHICAGO BOARD OF TRADE LAST WEEK OPTED TO QUIT GLOBEX AND GO AHEAD WITH PLANS TO DEVELOP ITS OWN LOCAL ELECTRONICTRADING SYSTEM DUBBED PROJECT A IT ALSO REACHED A PRELIMINARY AGREEMENT WITH BLOOMBERG LP'S BLOOMBERG FINANCIAL MARKETS THAT WOULD ALLOW USERS OF BLOOMBERG'S TERMINALS TO TRADE CBOTLISTED FUTURES CONTRACTS AT TIMES WHEN THE EXCHANGE FLOOR IS CLOSED 9404220042 940422 INTERNATIONAL BRIEF KIA MOTORS CO SOUTH KOREA CONCERN AGREES TO ASSEMBLE CAR IN GERMANY SOUTH KOREA'S KIA MOTORS CO SAID IT HAS AGREED WITH VILHELM KARMANN GMBH OF GERMANY TO ASSEMBLE ITS ALLTERRAIN VEHICLE SPORTAGE AT THE GERMAN COMPANY'S PLANT IN FRANKFURT THIS IS THE FIRST TIME A SOUTH KOREAN AUTO COMPANY HAS SET UP AN ASSEMBLY PLANT IN EUROPE ACCORDING TO KIA OFFICIALS UNDER THE AGREEMENT KIA WILL PROVIDE TECHNOLOGY AND PARTS TO BUILD ABOUT 15000 SPORTAGES A YEAR WHILE THE GERMAN COMPANY OFFERS PRODUCTION FACILITIES OUTPUT FROM THE PLANT WILL BE SOLD IN EUROPE KIA SAID VILHELM KARMANN IS A SMALL COMPANY SPECIALIZING IN THE ASSEMBLY OF AUTOMOBILES WITH PARTS AND COMPONENTS PROVIDED BY FOREIGN FIRMS 9404220041 940422 BUSINESS BRIEF AMERICAN MEDICAL ELECTRONICS INC SHARE PRICE TUMBLES 24 AS EARNINGS TRAIL FORECASTS SHARES OF AMERICAN MEDICAL ELECTRONICS INC PLUNGED IN VALUE BY 24 YESTERDAY AFTER THE MAKER OF MEDICAL DEVICES ANNOUNCED FIRSTQUARTER EARNINGS WELL BELOW ANALYSTS' EXPECTATIONS AMERICAN MEDICAL STOCK FELL 2875 TO CLOSE AT 9375 IN NASDAQ STOCK MARKET TRADING YESTERDAY AMERICAN MEDICAL REPORTED A 71 PLUNGE IN NET INCOME TO 345000 OR FIVE CENTS A SHARE AFTER A ONETIME CHARGE OF 655000 OR NINE CENTS A SHARE RELATED TO A SETTLEMENT WITH JOSEPH MOOIBROEK WHO WAS REMOVED AS THE DALLAS MEDICALDEVICE MAKER'S PRESIDENT AND CHIEF EXECUTIVE OFFICER ON APRIL 7 INDUSTRY ANALYSTS HAD PROJECTED NET OF ABOUT 18 CENTS A SHARE FOR THE QUARTER YEAREARLIER NET WAS 12 MILLION OR 16 CENTS A SHARE AFTER A 375000 GAIN FROM THE CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE REVENUE ROSE 16 TO 101 MILLION FROM 87 MILLION A YEAR EARLIER 9404220040 940422 WHAT'S NEWS BUSINESS AND FINANCE STOCKS RALLIED SPARKED BY A SURGE IN TECHNOLOGY SHARES AND BOND PRICES THE DOW JONES INDUSTRIALS SOARED 5383 TO 365254 IBM WHOSE EARNINGS NEWS BOOSTED OTHER STOCKS ACCOUNTED FOR MORE THAN 14 POINTS OF THE INDUSTRIALS' ADVANCE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED OVER 1 1/8 POINT TO YIELD 721 IBM'S STOCK JUMPED 12 AFTER THE COMPANY POSTED A STRONG FIRST QUARTER INCLUDING A SURPRISING 6 RISE IN REVENUE FROM CONTINUING OPERATIONS THE SENATE CLEARED THE WAY FOR PASSAGE OF A BILL THAT REDUCES THE TIME AND COST OF BANKRUPTCY PROCEEDINGS AND STENGTHENS CREDITOR RIGHTS PETRIE PUT 1700 APPAREL STORES UP FOR SALE AND WILL DISTRIBUTE ITS 13 BILLION STAKE IN TOYS R US TO HOLDERS THE TEAMSTERS 16DAY STRIKE AGAINST 20 TRUCK FIRMS IS BEGINNING TO SERIOUSLY SQUEEZE SOME BUSINESSES SOUTHWEST AIR WILL BE REMOVED FROM THE US'S SECOND LARGEST AIRLINE RESERVATIONS SYSTEM NEXT MONTH NORTHWEST AIR HAD RECORD FIRSTQUARTER PROFIT REFLECTING IMPROVED OPERATIONS AND A ROUTE RESTRUCTURING TELEDYNE AGREED TO PAY 1125 MILLION TO SETTLE TWO WHISTLEBLOWER SUITS ALLEGING FRAUD ON PENTAGON CONTRACTS FORD MOTOR IS LAUNCHING A SWEEPING RESTRUCTURING OF ITS 92 BILLION WORLDWIDE VEHICLE BUSINESS KEMPER EXPECTS TO POST SURPRISINGLY STRONG QUARTERLY EARNINGS WHICH COULD SPARK A HIGHER BID FROM GE SMALL INVESTORS IN PRUDENTIAL'S LIMITED PARTNERSHIPS MAY FARE BETTER THAN FIRST EXPECTED IN SETTLEMENT CLAIMS FROM A REPARATIONS FUND ACCOUNTING RULE MAKERS ARE LIKELY TO POSTPONE UNTIL AT LEAST 1995 A PLAN TO REQUIRE FIRMS TO DEDUCT THE COST OF EMPLOYEE STOCK OPTIONS FROM EARNINGS SEARS POSTED A FIRSTQUARTER LOSS OF 979 MILLION REFLECTING EARTHQUAKE CLAIMS AT ITS ALLSTATE SUBSIDIARY RJR NABISCO POSTED STRONGERTHANEXPECTED FIRSTQUARTER NET REFLECTING SOME OF LAST YEAR'S COSTCUTTING TEXAS INSTRUMENTS' SALES JUMPED 30 IN THE FIRST QUARTER AND NET CLIMBED 65 ON STRONG CHIP SALES APPLE'S NET FELL 84 IN ITS QUARTER INTEL IS TEAMING UP WITH CNN TO TEST A NEW TECHNOLOGY FOR BRINGING TV TO NETWORKS OF PERSONAL COMPUTERS LLOYDS BANK PROPOSED AN EXPANSION INTO THE MORTGAGE BUSINESS BY OFFERING TO BUY A THRIFT FOR 268 BILLION AMOCO AND ASHLAND OIL SAID NET SURGED LAST QUARTER ON STRONG PETROLEUM REFINING AND MARKETING RESULTS SOUTHWESTERN BELL BELLSOUTH AND NYNEX REPORTED BETTERTHANEXPECTED EARNINGS FOR THE FIRST QUARTER BUOYED MOSTLY BY STRONG REGIONAL ECONOMIES AND GROWTH IN CELLULAR BUSINESSES THE TREASURY IS QUESTIONING SOME POPULAR SECURITIES THAT BLEND SOME FEATURES OF DEBT AND EQUITY MCDONALD'S PROFIT ROSE 12 IN THE FIRST QUARTER DESPITE HIGHER SALES EXPENSES AND WEAK FOREIGN CURRENCIES REVENUE TOTALED 18 BILLION UP 9 LLOYDS BANK PROPOSED AN EXPANSION INTO THE MORTGAGE BUSINESS BY OFFERING TO BUY A THRIFT FOR 268 BILLION IN A MOVE THAT WOULD TEAR DOWN WALLS BETWEEN BRITAIN'S ONCESEPARATE BANKING AND THRIFT INDUSTRIES SHORT INTEREST ROSE 2 ON THE BIG BOARD IN MIDAPRIL AND CLIMBED 44 ON THE AMERICAN STOCK EXCHANGE BONDS LEHMAN BROTHERS TREASURY INDEX 515800 UP 5965 COMMODITIES OIL 1663 A BARREL UP 31 CENTS DOW JONES FUTURES INDEX 13591 UP 043 SPOT INDEX 13076 UP 026 DOLLAR 10365 YEN UP 062 16910 MARKS UP 00027 9404220039 940422 CORRECTIONS & AMPLIFICATIONS JANET YELLEN'S MENTOR JAMES TOBIN HAS CRITICIZED THE FEDERAL RESERVE'S RECENT MOVES TO RAISE INTEREST RATES IN A WHAT'S NEWS ITEM YESTERDAY IT WAS INCORRECTLY STATED THAT THE CRITICISM HAD COME FROM MS YELLEN A LIKELY NOMINEE TO THE FED FOURTH FINANCIAL CORP AGREED TO ACQUIRE OKLAHOMA SAVINGS INC FOR ABOUT 10 MILLION IN COMMON STOCK AN ITEM YESTERDAY INCORRECTLY REPORTED THAT FOURTH FINANCIAL AGREED TO ACQUIRE STILLWATER FEDERAL SAVINGS BANK FROM OKLAHOMA SAVINGS BELL ATLANTIC CORP PLANS TO OFFER VOICE DATA AND VIDEOPROGRAMMING SERVICES TO ONE MILLION HOMES BY THE END OF 1995 AN ARTICLE YESTERDAY INCORRECTLY SAID THE SERVICES INITIALLY WOULD BE OFFERED BY EARLY 1997 BASED ON INFORMATION SUPPLIED BY THE COMPANY TRAVELERS INC SAID CONSUMER FINANCE OPERATING EARNINGS ROSE 6 TO 512 MILLION FOR THE FIRST QUARTER IN AN ARTICLE YESTERDAY THE FIGURE WAS INCORRECTLY REPORTED AS 12 MILLION 9404220038 940422 PROFIT AT AMOCO ASHLAND JUMPED LAST QUARTER GAINS CAME DESPITE DROP IN OIL PRICES WEATHER HURT RESULTS AT SUN CO BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL AMOCO CORP AND ASHLAND OIL INC SAID NET INCOME SURGED LAST QUARTER ON THE BACK OF STRONG PETROLEUM REFINING AND MARKETING RESULTS BUT SUN CO PROFIT FELL BECAUSE OF REFINERY DIFFICULTIES CAUSED BY SEVERE WINTER WEATHER CHEMICAL EARNINGS FOR AMOCO ALSO SURGED BOOSTED BY INCREASED AUTO MANUFACTURING AND HOME BUILDING AMOCO CHEMICALS ARE THE RAW MATERIALS FOR MAKING SYNTHETIC FIBERS FOR SUCH PRODUCTS AS CARPETS DRAPERIES AND UPHOLSTERY AND DEMAND SURGED LAST QUARTER THE ROBUST RESULTS FOR AMOCO CAME DESPITE SHARPLY LOWER OIL PRICES WHICH MANY WALL STREET ANALYSTS BELIEVE WILL LEAD TO LOWER NET INCOME FOR MOST OTHER MAJOR OIL COMPANIES AMOCO PROBABLY ISN'T INDICATIVE OF THE REST OF THE INDUSTRY SAID BERNARD PICCHI AN OIL ANALYST AT KIDDER PEABODY & CO IN NEW YORK AMOCO SAID FIRSTQUARTER NET SURGED TO 398 MILLION OR 80 CENTS A SHARE FROM 229 MILLION OR 46 CENTS A SHARE A YEAR EARLIER THE 1993 PERIOD INCLUDED 170 MILLION IN CHARGES AND 56 MILLION IN GAINS STRIPPING AWAY ONETIME ITEMS AMOCO'S PROFIT JUMPED 16 REVENUE SLID 26 TO 677 BILLION FROM 694 BILLION THE OPERATING EARNINGS WERE STRONG CONSIDERING THE 4 TO 5 PER BARREL DROP IN CRUDEOIL PRICES COMPARED WITH LAST YEAR SAID H LAURANCE FULLER AMOCO'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER NONETHELESS MR FULLER SAID THE COMPANY WAS PLANNING MAJOR CHANGES TO ITS CORPORATE STRUCTURE AND WOULD ANNOUNCE DETAILS IN THE MIDDLE OF THE YEAR WALL STREET ANALYSTS ARE EXPECTING STAFF REDUCTIONS IN THE THOUSANDS WHICH WOULD COME ON TOP OF CUTS OF 8500 PEOPLE INITIATED IN JULY 1992 BETWEEN THE END OF 1991 AND THE END OF 1993 AMOCO HAS REDUCED ITS PAYROLL BY 14 TO 46317 IN CHICAGO A COMPANY SPOKESMAN SAID THERE WILL BE A LOT OF PEOPLE SHIFTED AND THERE WILL BE JOB CUTS BUT HE SAID HE COULDN'T BE MORE SPECIFIC THE SPOKESMAN SAID A COMMITTEE OF SENIOR MANAGEMENT WAS CONSIDERING THE ELIMINATION OF AMOCO'S CURRENT CORPORATE STRUCTURE OF THREE LARGE OPERATING COMPANIES ONE DEVOTED TO OIL AND GAS EXPLORATION AND PRODUCTION ONE TO PETROLEUM PRODUCT REFINING AND MARKETING AND THE OTHER TO CHEMICALS INSTEAD AMOCO IS LOOKING TO DEVELOP A LARGER NUMBER OF SMALLERSIZED BUSINESS UNITS THAT WOULD BE MORE NIMBLE AGGRESSIVE AND COSTCONSCIOUS THE SPOKESMAN SAID ASHLAND BASED IN ASHLAND KY SAID NET IN THE FISCAL SECOND QUARTER ENDED MARCH 31 JUMPED TO 329 MILLION OR 47 CENTS A SHARE FROM 835000 OR ONE CENT A SHARE A YEAR EARLIER THE COMPANY WHICH IS LARGELY A PETROLEUM PRODUCT REFINER AND MARKETER WITH VERY LITTLE OIL PRODUCTION OF ITS OWN SAID SHARPLY HIGHER REFINERY MARGINS BOOSTED RESULTS GENERALLY LOW PRICES FOR CRUDE OIL THE FEEDSTOCK FOR PETROLEUM PRODUCT REFINING PUSH UP MARGINS REVENUE FOR THE QUARTER FELL 8 TO 22 BILLION FROM 24 BILLION A YEAR EARLIER WE ARE OPTIMISTIC WE CAN ADD A GOOD SECOND HALF TO THE BEST START WE'VE HAD IN SEVERAL YEARS SAID JOHN HALL ASHLAND'S CHAIRMAN AND CHIEF EXECUTIVE IN PHILADELPHIA SUN SAID IT DIDN'T BENEFIT AS MUCH FROM THE STRONG REFINING MARGINS BECAUSE OF WEATHERINDUCED OPERATING PROBLEMS AT THREE OF ITS PLANTS IN ADDITION THE COMPANY HAD DIFFICULTY GETTING OIL DELIVERIES TO TWO REFINERIES ON THE DELAWARE RIVER BECAUSE IT WAS FROZEN AT TIMES MOREOVER TOUGH ROAD CONDITIONS MADE IT HARD TO GET GASOLINE AND OTHER PETROLEUM PRODUCTS TO SUN'S MARKETERS A SPOKESMAN SAID IN THE QUARTER SUN'S NET FELL 33 TO 27 MILLION OR 25 CENTS A SHARE FROM 40 MILLION OR 37 CENTS A SHARE THE LATEST QUARTER INCLUDES A 7 MILLION ACCOUNTING CHARGE AND THE 1993 PERIOD INCLUDED A 5 MILLION TAX GAIN WITHOUT ONETIME ITEMS SUN'S RESULTS WERE FLAT ALTHOUGH REVENUE SLID 10 TO 207 BILLION FROM 23 BILLION TIMOTHY AEPPEL CONTRIBUTED TO THIS ARTICLE 9404220037 940422 WHAT'S NEWS WORLDWIDE SERBS LAUNCHED THEIR FIERCEST ASSAULT YET ON GORAZDE KILLING DOZENS BOSNIAN SERB TANKS SHOWERED THE TOWN WITH CANNON FIRE REDUCING A HOSPITAL WARD TO HEAPS OF FLESH AND METAL ACCORDING TO ONE DOCTOR A LOCAL OFFICIAL CONTACTED BY HAM RADIO SAID COUNTING THE DEAD AND WOUNDED DOESN'T MAKE SENSE ANYMORE THE UN REPORTED THAT SERB INFANTRY HAD ENTERED GORAZDE FOR THE FIRST TIME AND BOSNIA'S UN AMBASSADOR SAID THERE WAS HOUSETOHOUSE FIGHTING A CONVOY OF UN PEACEKEEPERS AND MEDICS WAS ON ITS WAY TO THE TOWN SENATE ARMED SERVICES COMMITTEE CHAIRMAN NUNN WARNED PINPRICK NATO AIR STRIKES MAY NOT BE ENOUGH IN BOSNIA AND THE US AND ITS ALLIES HAVE TO BE WILLING TO ESCALATE THE HOUSE PASSED A CRIME BILL THAT EXPANDS THE SCOPE OF THE DEATH PENALTY RESPONDING TO RISING PUBLIC FEARS ABOUT CRIME THE HOUSE APPROVED BROAD LEGISLATION THAT AUTHORIZES BILLIONS OF DOLLARS FOR MORE POLICE OFFICERS PRISONS AND CRIMEPREVENTION PROGRAMS THE BILL WHICH PASSED BY A 285141 VOTE WOULD MAKE MORE THAN 60 ADDITIONAL FEDERAL CRIMES FROM GENOCIDE TO FATAL CARJACKING SUBJECT TO THE DEATH PENALTY A CONFERENCE COMMITTEE WILL NEGOTIATE DIFFERENCES BETWEEN THE HOUSE BILL AND A SENATE VERSION SPONSORS SAY THEY ARE HOPING TO COMPLETE ACTION ON THE MEASURE AND SEND IT TO THE PRESIDENT FOR HIS SIGNATURE SOMETIME DURING THE NEXT MONTH ROSTENKOWSKI IS SIGNALING SUPPORT FOR A BROADBASED TAX TO HELP FINANCE HEALTHCARE REFORM AT LEAST DURING ITS EARLY YEARS THE HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN IS COMMITTED TO CLINTON'S GOAL OF UNIVERSAL INSURANCE AND HE FAVORS AN AGGRESSIVE GOVERNMENT APPROACH TO DEALING WITH ITS COSTS THE US WILL ASK THE UN TO IMPOSE A FULL TRADE EMBARGO ON HAITI'S MILITARY RULERS IN AN ATTEMPT TO RETURN EXILED PRESIDENT ARISTIDE TO POWER A WHITE HOUSE OFFICIAL SAID EARLIER IN THE DAY ARISTIDE DENOUNCED CLINTON AND DESCRIBED WASHINGTON'S HAITIAN POLICY INCLUDING THE US REPATRIATION OF REFUGEES AS RACIST NORTH KOREA MAY LET INTERNATIONAL INSPECTORS WATCH THE REMOVAL OF FUEL RODS FROM ITS NUCLEAR REACTOR A STEP THAT COULD SHOW WHETHER FISSIONABLE MATERIAL IS BEING DIVERTED FOR ATOMIC WEAPONS A UN OFFICIAL SAID BUT HE ADDED THAT PYONGYANG HASN'T MADE IT CLEAR WHAT THE ARMS INSPECTORS WOULD BE PERMITTED TO DO A PROAPARTHEID LEADER QUASHED HOPES THAT HE WOULD BRING HIS CONSERVATIVE PARTY INTO SOUTH AFRICA'S MULTIRACIAL ELECTIONS NEXT WEEK CITING THE GOVERNMENT'S REFUSAL TO GUARANTEE WHITE AFRIKANERS THEIR OWN HOMELAND SEPARATELY A BOMB BLAST DAMAGED AN ELECTORAL COMMISSION OFFICE IN A WHITE FARMING TOWN IN THE ORANGE FREE STATE RABIN SAID THAT ISRAEL WAS WILLING TO UPROOT JEWISH SETTLEMENTS IN THE GOLAN HEIGHTS AS A WAY OF ACHIEVING PEACE BUT THE ISRAELI PRIME MINISTER DIDN'T COMMIT ISRAEL TO MEETING SYRIA'S MAIN CONDITION FOR PEACEFULL WITHDRAWAL FROM THE GOLAN RABIN'S REMARKS CAME IN A SPEECH TO KIBBUTZ LEADERS SOME OF WHOM HECKLED HIM NIXON LAPSED INTO A DEEP COMA THREE DAYS AFTER SUFFERING A MAJOR STROKE AND DOCTORS SAID THE CONDITION OF THE 81YEAROLD FORMER PRESIDENT APPEARED TO BE LIFETHREATENING NIXON'S FAMILY WAS AT HIS SIDE AS HIS CONDITION DETERIORATED ACCORDING TO A STATEMENT FROM NEW YORK HOSPITAL JAPAN'S RULING COALITION REACHED A COMPROMISE ON TAX REFORM AND JAPANESE POLICY TOWARD NORTH KOREA PAVING THE WAY FOR SELECTION OF A PRIME MINISTER THE GROUPS ARE EXPECTED TO NOMINATE FOREIGN MINISTER HATA FOR PREMIER TODAY WITH A PARLIAMENTARY VOTE NEXT WEEK RULING PARTY CANDIDATE ZEDILLO VISITED MEXICO'S SOUTHERN STATE OF CHIAPAS AND EXPRESSED SUPPORT FOR GOVERNMENT EFFORTS TO PUT DOWN A PEASANT REBELLION ZEDILLO MET WITH THE LOCAL GOVERNMENT AND VOWED TO ADDRESS THE PROBLEMS THAT SPARKED THE JAN 1 UPRISING INCLUDING JOBLESSNESS AND ILLITERACY RWANDAN PEACE TALKS WERE SET TO TAKE PLACE TOMORROW IN NORTHERN TANZANIA AMID REPORTS OF NEW MASSACRES OF CIVILIANS MEANWHILE THE UN SECURITY COUNCIL VOTED TO PULL ALMOST ALL UN TROOPS FROM THE COUNTRY REDUCING THE FORCE TO A MILITARY AND CIVILIAN TEAM OF ABOUT 270 PEOPLE 9404220035 940422 FOUNDATION BASED ON WARHOL ESTATE IS FACING INQUIRY BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE STATE ATTORNEY GENERAL'S OFFICE IS INVESTIGATING THE MANAGEMENT OF CHARITABLE ASSETS BY THE ANDY WARHOL FOUNDATION FOR THE VISUAL ARTS THE INQUIRY FOLLOWS A STATE SURROGATE'S COURT RULING LAST WEEK THAT THE WARHOL FOUNDATION HAD UNDERSTATED THE VALUE OF THE ARTIST'S ESTATE BY 2899 MILLION CERTAIN ISSUES HAVE BEEN RAISED REGARDING THE CONDUCT OF THE FOUNDATION IN ADMINISTERING ITS CHARITABLE ASSETS DAVID SAMUELS DEPUTY CHIEF OF CHARITIES FOR THE ATTORNEY GENERAL'S OFFICE SAID IN AN INTERVIEW YESTERDAY THESE ISSUES ARE GOING TO BE LOOKED INTO BY THE CHARITIES BUREAU HE SAID THE ESTATE'S VALUE HAS BEEN THE SUBJECT OF A BATTLE BETWEEN THE WARHOL FOUNDATION AND THE ESTATE'S FORMER ATTORNEY EDWARD HAYES MR HAYES STANDS TO GAIN 2 OF THE ESTATE'S VALUE IF A CONTRACT SIGNED BY THE ESTATE'S EXECUTOR MR WARHOL'S MANAGER FRED HUGHES IS UPHELD IN A SECOND STAGE OF THE TRIAL SET TO BEGIN SOON PEOPLE FAMILIAR WITH THE ATTORNEY GENERAL'S INQUIRY SAID IT PRINCIPALLY CONCERNS WHETHER THE FOUNDATION INTENTIONALLY UNDERVALUED THE COLLECTION ALSO BEING EXAMINED IS WHETHER THE SALARIES PAID TO FOUNDATION EMPLOYEES ARE EXCESSIVE BUT MR SAMUELS SAID IT WAS PREMATURE TO CALL IT A FULLSCALE INVESTIGATION SURROGATE'S COURT JUDGE EVE PREMINGER RULED LAST WEEK THAT THE VALUE OF THE TOTAL ESTATE INCLUDING REAL ESTATE ART AND SECURITIES IS 5099 MILLION NOT THE 220 MILLION CLAIMED BY THE WARHOL FOUNDATION MR HAYES HAD SOUGHT A VALUE OF 827 MILLION THE WARHOL FOUNDATION'S CLAIM WAS SUPPORTED IN PART BY AN ART APPRAISAL BY CHRISTIE'S INTERNATIONAL PLC BUT THE JUDGE RULED THAT CHRISTIE'S HAD A CONFLICT IN THAT IT BOTH APPRAISED THE ART AND WAS SEEKING TO BE HIRED TO SELL IT AT AUCTION MR HAYES ARGUES IT IS IN THE WARHOL FOUNDATION'S INTEREST TO UNDERSTATE THE VALUE OF THE ESTATE BECAUSE IT LIMITS THE AMOUNT IT MUST DISTRIBUTE ANNUALLY TO RETAIN ITS STATUS AS A CHARITABLE FOUNDATION IT ALSO LIMITS THE LEGAL FEES ALLEGEDLY OWED MR HAYES AND MR HUGHES ARCHIBALD GILLIES FOUNDATION PRESIDENT SAID CAN YOU IMAGINE ME GOING TO CHRISTIE'S AND SAYING LOWBALL THE NUMBERS SO WE CAN LIMIT THE EXECUTOR'S FEES' IT'S PREPOSTEROUS HE ADDED OUR BOOKS ARE OPEN WE'RE READY TO TALK TO THE ATTORNEY GENERAL ABOUT ANYTHING THE ATTORNEY GENERAL'S OFFICE WHILE INVESTIGATING THE WARHOL FOUNDATION CONTINUES TO SIDE IN COURT WITH THE ESTATE IN ITS OPPOSITION TO MR HAYES'S FEE CLAIM MR SAMUELS SAID MR HAYES'S FEES WERE EXCESSIVE AND EXORBITANT AND NOTHING IN THE JUDGE'S DECISION AFFECTS OUR VIEW OF THAT SAID MR SAMUELS 9404220034 940422 SHORT INTEREST HIGHLIGHTS NYSE ISSUES THE SHORT INTEREST RATIO IS THE NUMBER OF DAYS IT WOULD TAKE TO COVER THE SHORT INTEREST IF TRADING CONTINUED AT THE AVERAGE DAILY VOLUME FOR THE MONTH 9404220032 940422 HOLSON BURNES GROUP TO POST SHARP RISE IN FIRSTQUARTER NET NORTH SMITHFIELD RI HOLSON BURNES GROUP INC CITING IMPROVED MARGINS AND HIGHER PRODUCT PRICES SAID IT EXPECTS TO REPORT FIRSTQUARTER NET INCOME INCREASED MORE THAN FIVE TIMES FROM THE YEARAGO RESULTS STEVEN BARNES PRESIDENT AND CHIEF OPERATING OFFICER SAID IN AN INTERVIEW THAT HOLSON BURNES EXPECTS TO REPORT NET INCOME OF 500000 TO 600000 OR EIGHT CENTS TO 10 CENTS A SHARE FOR THE QUARTER ENDED MARCH 31 REVENUE IS EXPECTED TO BE ABOUT 28 MILLION IN THE YEARAGO QUARTER HOLSON BURNES A MAKER OF PHOTO ALBUMS AND PICTURE FRAMES REPORTED NET INCOME OF 85000 OR ONE CENT A SHARE ON REVENUE OF 298 MILLION THE COMPANY SAID NET INCOME IN THE 1994 AND 1993 FIRST QUARTERS INCLUDED THE BENEFIT OF NET OPERATING LOSS CARRYFORWARDS MR BARNES SAID HOLSON BURNES IMPROVED MARGINS AFTER IT BEGAN TO AUTOMATE TWO MANUFACTURING FACILITIES WE WERE ABLE TO GROW WITHOUT HAVING TO ADD EMPLOYEES HE SAID AS THE AUTOMATION CONTINUES WE'RE HOPING TO GROW WITHOUT INCREASING OUR COST STRUCTURE THESE EFFORTS WILL REALLY IMPROVE OUR FINANCIAL PERFORMANCE HE SAID HOLSON BURNES EMPLOYS 500 PEOPLE MR BARNES SAID REVENUE FOR THE 1994 FIRST QUARTER SLIPPED ABOUT 6 BECAUSE IN THE 1993 FIRST QUARTER THE COMPANY SOLD OFF SOME EXCESS INVENTORY AT COST WE HAD WAY TOO MUCH INVENTORY IN 1992 THAT WE HAD TO SELL OFF CHEAPLY IN THE 1993 FIRST QUARTER HE SAID HOLSON BURNES MANUFACTURES 1200 PICTURE FRAME STYLES AND 800 STYLES OF PHOTO ALBUMS ITS PRODUCTS ARE SOLD IN DEPARTMENT STORES AND LOWERPRICED STORES SUCH AS KMART CORP MOREOVER AS THE BABY BOOMER GENERATION CONTINUES TO HAVE CHILDREN HOLSON BURNES'S JUVENILE PRODUCT LINE SHOULD BENEFIT MR BARNES SAID CHILDREN ARE ONE OF THE MOST POPULAR SUBJECTS TO PHOTOGRAPH HE SAID 9404220028 940422 SCIENCE POLL REVEALS THE FAX GENERATION CAN'T FIND THE SUN NEW YORK MUSEUM SURVEY SHOWS LOTS OF US ARE DIM ABOUT SOME BASIC FACTS BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK QUICK WHERE'S THE SUN IS IT IN THE TRIFID NEBULA IS IT IN THE MILKY WAY OR ARE YOU JUST NOT SURE IF YOU'RE LIKE 41 OF THE 1255 ADULTS POLLED RECENTLY BY NEW YORK'S AMERICAN MUSEUM OF NATURAL HISTORY THEN YOU KNOW THAT THE SUN IS LOCATED IN THE MILKY WAY BUT IF YOU'RE LIKE 52 OF THE RESPONDENTS YOU'RE NOT SURE WHERE IT IS THAT'S JUST ONE OF THE GLOOMY FACTS REVEALED BY THE MUSEUM'S SCIENCE AND NATURE SURVEY RELEASED ON WEDNESDAY ALTHOUGH 76 OF THE RESPONDENTS SAID THEY WERE INTERESTED IN SCIENCE FOR ITS OWN SAKE AND ANOTHER 68 SAID THEY BELIEVED SCIENCE COULD SOLVE THE WORLD'S PROBLEMS MOST WERE IGNORANT OF SOME BASIC SCIENTIFIC FACTS THE SIMPLE MESSAGE IS THAT AMERICANS DON'T KNOW TOO MUCH ABOUT SCIENCE SAID MICHAEL NOVACEK THE MUSEUM'S DEAN OF SCIENCE BEYOND THAT HOWEVER A LOT OF PEOPLE ARE CONCERNED ABOUT SCIENTIFIC ISSUES WITHOUT BEING WELLGROUNDED IN WHAT'S ACTUALLY GOING ON THE SURVEY'S DATA WERE WEIGHTED TO REFLECT THE MOST RECENT CENSUS FIGURES FOR AGE RACE GENDER AND EDUCATION AND WERE CONDUCTED BY TELEPHONE EARLIER THIS YEAR ANTHROPOLOGY BOTANY EVOLUTION AND ZOOLOGY WERE THE FOUR MOST POPULAR AREAS OF SCIENTIFIC INTEREST AMONG THOSE SURVEYED RESPONDENTS RANKED DESTRUCTION OF THE ENVIRONMENT AS THE GREATEST THREAT TO HUMAN LIFE FOLLOWED BY AIDS OVERPOPULATION AND GLOBAL NUCLEAR WAR BUT 47 OF THE RESPONDENTS SAID THEY NEVER READ NATURAL HISTORY OR SCIENCE MAGAZINES WHILE 55 SAID THEY OCCASIONALLY WATCH SCIENCE DOCUMENTARIES ON TELEVISON BETTEREDUCATED RESPONDENTS PREDICTABLY ANSWERED MORE OF THE SURVEY'S QUESTIONS CORRECTLY YET EVEN THE MOST HIGHLY EDUCATED AMONG THEM THOSE WITH A POSTGRADUATE EDUCATION ONLY ANSWERED 61 OF THE QUESTIONS CORRECTLY THE MEAN SCORE WAS 41 TO BE SURE SOME OF THE QUESTIONS POSED A CHALLENGE FOR EXAMPLE WHAT IS THE NEAREST LIVING RELATIVE OF THE DINOSAUR TYRANNOSAURUS REX PAT YOURSELF ON THE BACK IF LIKE ONLY 10 OF THE RESPONDENTS YOU ANSWERED CHICKEN OTHER CHOICES WERE LIZARD CROCODILE OR ELEPHANT THEN AGAIN SOME WERE LESS TRICKY DO THE CONTINENTS MOVE MOST PEOPLE 78 ANSWERED CORRECTLY THAT THEY DO OTHER GOODIES LESS THAN HALF OF RESPONDENTS BELIEVE HUMANS EVOLVED FROM EARLIER SPECIES 9404220027 940422 BUSINESS BRIEF HERSHEY FOODS CORP FOOD CONGLOMERATE REPORTS RISE IN 1STQUARTER EARNINGS HERSHEY FOODS CORP REPORTED A SHARP INCREASE IN FIRSTQUARTER EARNINGS REFLECTING AN ACCOUNTING CHARGE A YEAR AGO THE HERSHEY PABASED CHOCOLATE FOOD PRODUCTS AND RESTAURANT CONCERN REPORTED EARNINGS OF 53 MILLION OR 61 CENTS A SHARE COMPARED WITH 11 MILLION OR ONE CENT A SHARE A YEAR AGO EXCLUDING THE ACCOUNTING CHARGE AND A ONETIME GAIN FROM THE 1993 SALE OF AN INVESTMENT OPERATING EARNINGS FELL 18 SALES FELL 15 TO 8839 MILLION HERSHEY ATTRIBUTED THE DROP IN OPERATING EARNINGS TO STRONG VOLUME GAINS PRODUCED LAST YEAR BAD WEATHER AN EARLIER EASTER HOLIDAY AND THE TIMING OF CERTAIN YEAREND PROMOTIONS 9404220026 940422 NEW INDEX OPTION IS PROPOSED PHILADELPHIA THE PHILADELPHIA STOCK EXCHANGE FILED A PROPOSAL WITH THE SECURITIES AND EXCHANGE COMMISSION TO LIST AN INDEX OPTION BASED ON THE FIVE LARGEST COMPANIES LISTED ON THE NEW YORK STOCK EXCHANGE THE CAPITALIZATIONWEIGHTED SUPER CAP INDEX WOULD INCLUDE AT&T CORP COCACOLA CO EXXON CORP GENERAL ELECTRIC CO AND WALMART STORES INC THE INDEX OPTION WOULD BEGIN TRADING IN MID1994 PENDING SEC APPROVAL 9404220025 940422 PRUDENTIAL CLAIMANTS SEEN FARING WELL IN RESTITUTION BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SMALL INVESTORS MAY FARE BETTER THAN FIRST EXPECTED AT RECEIVING SOLID SETTLEMENTS ON LIMITEDPARTNERSHIP CLAIMS FROM A REPARATIONS FUND SET UP BY PRUDENTIAL SECURITIES INC BY TODAY THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT WILL HAVE DOLED OUT ABOUT 55 MILLION TO THE FIRST 782 CLAIMANTS WHO HAVE TAPPED INTO THE RESTITUTION FUND ACCORDING TO A QUARTERLY REPORT RELEASED BY AN INDEPENDENT CLAIMS ADMINISTRATOR MORE IMPORTANTLY IRVING M POLLACK THE CLAIMS ADMINISTRATOR HAS TAKEN A HARD LINE IN ASSESSING THE VALUE OF MANY PARTNERSHIPS IN THE CLAIMS PROCESS MR POLLACK HAS SET A LIQUIDITY DISCOUNT OF BETWEEN 10 AND 100 IN DETERMINING THE SOCALLED RESIDUAL VALUE OF SOME REALESTATE AND OTHER PARTNERSHIPS THIS MEANS PRUDENTIAL ESSENTIALLY WILL LOP OFF AS MUCH AS THE ENTIRE ASSET VALUE OF SOME PARTNERSHIPS IN DETERMINING THEIR CURRENT VALUE THIS IS A GREAT DEAL FOR CLAIMAINTS PEOPLE WHO HAVEN'T SEEN THAT YET DON'T HAVE THEIR EYES OPEN SAYS JOEL BRENNER OF STORCH & BRENNER THE WASHINGTON LAW FIRM FOR THE CLAIMS ADMINISTRATOR THE STANDARDS OF EVALUATION ARE SO FAVORABLE TO CLAIMAINTS THAT IT'S HARD TO IMAGINE A FAIRER PROCESS AS MANY AS 338000 INVESTORS ARE SEEKING REDRESS THROUGH THE FUND SET UP AS PART OF AN OCTOBER SETTLEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION AND STATE REGULATORS PRUDENTIAL HAS BEEN ACCUSED OF MISLEADING INVESTORS ON THE RISKS AND RETURNS OF 815 BILLION OF LIMITED PARTNERSHIPS IN THE 1980S THE COMPANY HAS SET ASIDE 330 MILLION FOR THE REPARATIONS FUND BUT COULD END UP PAYING MORE IF CLAIMS EXCEED THAT AMOUNT THE SETTLEMENT PROCESS IS NO PANACEA OF COURSE MOST OF THE CLAIMS SETTLED SO FAR HAVE BEEN SMALL DISPUTES PEOPLE FAMILIAR WITH THE PROCESS SAY MANY INVESTORS WITH LARGER CLAIMS HAVEN'T YET FILED CLAIMS FORMS AND IT REMAINS TO BE SEEN HOW THEY WILL FARE BUT THE REPORT GIVES THE FIRST CLUE AS TO HOW THE ADMINISTRATOR WILL HANDLE MANY OF THE PARTNERSHIP DISPUTES UNDER THE SETTLEMENT ACCORD INVESTORS WHO BOUGHT ANY OF 708 PRUDENTIAL PARTNERSHIPS BETWEEN 1980 AND 1990 CAN TRY TO RECOVER THEIR MONEY FROM THE FIRM PRUDENTIAL WILL OFFER A SETTLEMENT OR REJECT THE CLAIM IF INVESTORS ARE DISSATISFIED THEY CAN SUBMIT THE CLAIM TO AN ARBITRATOR SELECTED BY THE CLAIMS ADMINISTRATOR WHO THEN WILL MAKE A RULING INVESTORS WHO HAVE RECEIVED PRIOR SETTLEMENTS WILL BE SHUT OUT FROM THE CLAIMS PROCESS AMONG THE REPORT'S MOST IMPORTANT CONCLUSIONS WAS THE RESIDUAL VALUE OF SOME PARTNERSHIPS RESIDUAL VALUE OR WHAT THE PARTNERSHIPS ARE REALLY WORTH PLAYS A MAJOR ROLE IN DETERMINING WHAT DAMAGES INVESTORS OUGHT TO RECEIVE FROM THEIR SOURED INVESTMENTS UNLIKE STOCKS AND OTHER SECURITIES MANY PARTNERSHIPS ARE ILLIQUID AND THUS CAN'T EASILY BE RESOLD IN THE MARKETPLACE IN A SIGNIFICANT MOVE FEES AND OTHER PARTNERSHIP EXPENSES WILL BE DEDUCTED IN ASSESSING RESIDUAL VALUES TO REFLECT THE FACT THAT THE OBJECTIVE IS TO VALUE PARTNERSHIP INTERESTS RATHER THAN UNDERLYING ASSETS THE REPORT SAID UPFRONT PARTNERSHIP FEES OFTEN TOTALED A WHOPPING 15 OF PARTNERSHIP PROCEEDS IN ADDITION A LIQUIDITY DISCOUNT OF A MINIMUM OF 10 AND A MAXIMUM OF 100 MAY BE IMPOSED DEPENDING UPON THE RECENT HISTORY OF THE PARTNERSHIP IN PRODUCING DISTRIBUTIONS FOR INVESTORS THE REPORT SAID INVESTORS WILL BE ELIGIBLE TO RECOVER INTEREST CALCULATED AT THE ANNUALIZED TREASURYBILL RATE DURING THE TIME OF THE INVESTMENT THE RATE APPLIED SINCE JAN 1 1994 HAS BEEN 386 THE REPORT SAID THE LIQUIDITY DISCOUNT WON'T APPLY TO ALL PARTNERSHIPS INCLUDING A HUGE CHUNK OF SOURED OIL AND GAS DEALS MANY OF WHICH HAVE BEEN SETTLED AND A PRUDENTIAL EXECUTIVE SAID THE DISCOUNT WILL RESULT IN INCREASED COSTS TO THE FIRM OF PROBABLY LESS THAN 25 MILLION BUT THE REPORT'S HARD LINE SUGGESTS PRUDENTIAL COULD END UP PAYING MORE THAN THE 330 MILLION ORIGINALLY SET ASIDE FOR THE FUND SOME ANALYSTS SAY WE STILL FEEL THAT THE MONEY WE SET ASIDE ALREADY WILL BE SUFFICIENT TO HANDLE ALL THE CLAIMS A PRUDENTIAL SPOKESMAN SAID YESTERDAY 9404220024 940422 SHORT INTEREST ON BIG BOARD HITS NEW HIGH TOTAL WAS UP 2 IN MONTH RJR NABISCO HOLDINGS POSTS INCREASE OF 21 BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST CONTINUED TO SET RECORDS ON THE NEW YORK STOCK EXCHANGE RISING 2 TO 140 BILLION SHARES IN MIDAPRIL BIG BOARD SHORT INTEREST TOTALED 1397031654 SHARES UP FROM 1369775470 A MONTH EARLIER SHORT INTEREST ON THE AMERICAN STOCK EXCHANGE ROSE 44 TO A RECORD 112669315 SHARES FROM THE 107887154 ADJUSTED SHARES REPORTED IN MIDMARCH ACCORDING TO SOME ANALYSTS THE MOUNTING SHORT INTEREST LEVEL PARTLY REFLECTS INCREASED OPPORTUNITIES FOR ARBITRAGE BECAUSE OF THE GROWING NUMBER OF CORPORATE TAKEOVERS RJR NABISCO HOLDINGS CORP'S SHORT INTEREST POSITION SHOT UP 21 TO 366 MILLION SHARES FROM 303 MILLION SHARES LIKE OTHER COMPANIES WITH TOBACCO OPERATIONS RJR IS STRUGGLING WITH A WAVE OF ANTISMOKING FERVOR ACROSS THE NATION AS WELL AS PRESSURE FROM WASHINGTON POLICY MAKERS THE COMPANY WHICH IS STUDYING THE SPLITUP OF ITS TOBACCO AND FOOD BUSINESSES IS ALSO FACING A TOUGH SELL OF A 2 BILLION PREFERREDSHARE OFFERING RJR RECENTLY AMENDED THE OFFER TO ALLOW POTENTIAL INVESTORS TO RETAIN AN INTEREST IN BOTH THE TOBACCO AND FOOD BUSINESS THE ORIGINAL OFFER ONLY RELATED TO THE TOBACCO BUSINESS WHICH COULD FACE A SHAKY FUTURE TRADERS WHO SELL SECURITIES SHORT BORROW STOCK AND SELL IT BETTING THAT THE STOCK'S PRICE WILL DECLINE AND THAT THEY CAN BUY THE SHARES BACK LATER AT A LOWER PRICE FOR RETURN TO THE LENDER SHORT INTEREST IS THE NUMBER OF SHARES THAT HAVEN'T YET BEEN PURCHASED FOR RETURN TO LENDERS THE RECENT DECISION BY THE FEDERAL RESERVE TO RAISE SHORTTERM INTEREST RATES COULD PROVE BENEFICIAL TO SHORT SELLERS A HIGHER INTEREST RATE PROMPTS MONEY TO MIGRATE FROM THE STOCK MARKET TO OTHER SECURITIES SUCH AS TREASURY BILLS AND BONDS AS A RESULT SOME STOCK PRICES FALL WHICH MAKES IT EASIER FOR SHORT SELLERS TO BUY BACK SHARES AND COVER THEIR POSITIONS THE LEVEL OF NEGATIVE SENTIMENT MEASURED BY THE BIG BOARD SHORT INTEREST RATIO CONTINUED TO RISE INCREASING TO 457 FROM 452 THE RATIO IS THE NUMBER OF TRADING DAYS AT THE EXCHANGE'S AVERAGE DAILY TRADING VOLUME THAT WOULD BE REQUIRED TO CONVERT THE TOTAL SHORT INTEREST POSITION AVERAGE DAILY BIG BOARD VOLUME WAS 3055 MILLION SHARES BIG BOARD AND AMEX SHORT INTEREST POSITIONS WERE CALCULATED FOR THE MONTH INCLUDING THE 23 TRADING DAYS THROUGH APRIL 8 WITH APRIL 15 AS THE SETTLEMENT DATE SEE ACCOMPANYING TABLES WSJ APRIL 22 1994 9404220023 940422 DIVIDEND NEWS GILLETTE CO INCREASES PAYOUT REPORTS NET EXCEEDING FORECASTS BOSTON GILLETTE CO RAISED ITS QUARTERLY DIVIDEND TO 25 CENTS A SHARE FROM 21 CENTS A SHARE AS IT REPORTED STRONGERTHANEXPECTED SALES AND EARNINGS THE DIVIDEND IS PAYABLE JUNE 3 TO STOCK OF RECORD MAY 2 THE MAKER OF RAZORS TOILETRIES AND PENS SAID FIRSTQUARTER NET INCOME ROSE TO 164 MILLION OR 74 CENTS A SHARE FROM 37 MILLION OR ONE CENT A SHARE YEAREARLIER EARNINGS WERE REDUCED BY A CHARGE OF 1386 MILLION OR 63 CENTS A SHARE FOR A CHANGE IN ACCOUNTING PRINCIPLES GILLETTE SAID EARNINGS ROSE 15 FROM YEAREARLIER PROFIT BEFORE THE ACCOUNTING CHARGE GILLETTE SAID FIRSTQUARTER GAINS REFLECTED A 12 SALES INCREASE TO 136 BILLION FROM 122 BILLION THE IMPROVEMENT REFLECTED STRONG GROWTH IN SALES AND PROFITS OF RAZORS AND BLADES IN THE US LED BY THE SENSOR LINE ALSO HELPING RESULTS WAS THE INCLUSION OF THE PARKER PEN BUSINESS THAT GILLETTE ACQUIRED IN THE MIDDLE OF LAST YEAR INTERNATIONAL BUSINESS OUTSIDE OF EUROPE GREW STRONGLY BUT EUROPEAN BUSINESS WAS GENERALLY WEAK AND FOREIGNEXCHANGE LOSSES ROSE 32 TO 319 MILLION ALFRED M ZEIEN CHAIRMAN SAID AT THE ANNUAL MEETING THAT GILLETTE EXPECTS TO INTRODUCE MORE THAN 20 NEW PRODUCTS THIS YEAR UP FROM 17 LAST YEAR AND GILLETTE WILL CONTINUE TO EXPAND EXISTING PRODUCTS GEOGRAPHICALLY AMONG THE MOST IMPORTANT WILL BE THE INTRODUCTION OF THE SENSOR EXCEL LINE WHICH IS DOING WELL IN JAPAN AND EUROPE INTO THE US EXCEL IS AN ENHANCED VERSION OF THE SENSOR CARTRIDGE THAT HAS TINY FINS TO STRETCH THE SKIN AND MAKE THE WHISKER STAND UP FOR THE BLADE LOOKING AHEAD MR ZEIEN SAID SECONDQUARTER SALES WILL RISE AT LEAST AT THE 12 LEVEL OF THE FIRST QUARTER 9404220022 940422 KAWASAKI STEEL RAISES CAPITAL OUTLAY WHILE KOBE STEEL SLATES CUT SPECIAL TO THE WALL STREET JOURNAL TOKYO MAJOR JAPANESE STEELMAKER KAWASAKI STEEL CORP SAID IT IS RAISING CAPITAL OUTLAYS 19 IN THE FISCAL YEAR STARTED APRIL 1 WHILE KOBE STEEL LTD ANOTHER MAJOR JAPANESE STEELMAKER PLANS A 55 CUT IN CAPITAL INVESTMENT KOBE STEEL SAID IT PLANS TO CUT ITS INVESTMENT TO 77 BILLION YEN 7465 MILLION FROM AN ESTIMATED 170 BILLION YEN IN THE PREVIOUS YEAR KAWASAKI STEEL SAID IT IS RAISING OUTLAYS TO 160 BILLION YEN FROM AN ESTIMATED 135 BILLION YEN KAWASAKI STEEL ALSO SAID IT PLANS TO INCREASE OVERALL CONSTRUCTION COSTS 26 TO 170 BILLION YEN FROM AN ESTIMATED 135 BILLION YEN A COMPANY SPOKESMAN SAID THE LARGEST REASON FOR THE SPENDING INCREASE IS AN ONGOING PROJECT TO BUILD FACILITIES AT ITS DOMESTIC CHIBA WORKS STEELMAKING PLANT TO REPLACE OLD STEELMAKING LINES THE SPOKESMAN SAID SPENDING IN THE FIVEYEAR PROJECT IS EXPECTED TO PEAK TO 100 BILLION YEN THIS YEAR THE KAWASAKI STEEL SPOKESMAN SAID THE COMPANY EXPECTS TO COMPLETE A NEW STEELMAKING LINE AT THE PLANT THIS SUMMER SHUTTING DOWN THE OLD LINE SOON AFTER THE COMPANY IS CONTINUING CONSTRUCTION OF A HOTSTRIP MILL AT THE FACILITY TO REPLACE ANOTHER FACILITY KAWASAKI PLANS TO SPEND AS MUCH AS 60 BILLION YEN TO MODERNIZE THE CHIBA WORKS NEXT FISCAL YEAR THE SPOKESMAN SAID THE COMPANY SEES THE INVESTMENT IN THE CHIBA WORKS BENEFITING ITS BOTTOM LINE BY GREATLY LOWERING DEPRECIATION COSTS IN THE YEAR BEGINNING APRIL 1 1996 MEANWHILE KOBE STEEL SAID THAT ALONG WITH ITS CUT IN OUTLAYS CAPITALCONSTRUCTION COSTS IN THE CURRENT FISCAL YEAR ARE EXPECTED TO FALL 42 TO 60 BILLION YEN FROM AN ESTIMATED 103 BILLION YEN A SPOKESMAN FOR THAT COMPANY SAID THE FIGURES ARE IN LINE WITH PLANS ANNOUNCED IN MARCH TO SLASH CAPITAL INVESTMENT 57 IN THE THREE YEARS ENDING MARCH 1996 FROM THE PREVIOUS THREEYEAR PERIOD AFTER REACHING A PEAK IN THE EARLY 1990S THE COMPANY'S CAPITAL OUTLAYS HAVE DECLINED SHARPLY 9404220021 940422 PLUM CREEK TIMBER AGREES WITH ESTIMATES OF FIRSTQUARTER PROFIT SPECIAL TO THE WALL STREET JOURNAL SEATTLE PLUM CREEK TIMBER CO SAID IT IS COMFORTABLE WITH THE HIGH END OF ANALYST ESTIMATES THAT THE PARTNERSHIP WILL EARN 49 CENTS TO 60 CENTS A UNIT IN THE FIRST QUARTER DIANE M IRVINE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER ADDED THAT SHE IS COMFORTABLE WITH A MEAN ESTIMATE THAT THE COMPANY WHICH OWNS 21 MILLION ACRES OF TIMBER IN THE PACIFIC NORTHWEST WILL EARN 250 A UNIT FOR ALL OF 1994 IN THE YEAREARLIER FIRST QUARTER THE COMPANY EARNED 236 MILLION OR 49 CENTS A UNIT ON OPERATING REVENUE OF 1164 MILLION FOR ALL OF 1993 PLUM CREEK EARNED 914 MILLION OR 192 A UNIT ON REVENUE OF 501 MILLION ALL 1993 PERUNIT FIGURES HAVE BEEN RESTATED FOR A DECEMBER 3FOR1 UNIT SPLIT PLUM CREEK IS A PUBLICLY TRADED PARTNERSHIP IN WHICH THE UNIT HOLDERS ARE CONSIDERED PARTNERS FOR INCOME TAX PURPOSES MS IRVINE SAID THAT DESPITE THE FEDERAL RESERVE'S INTERESTRATE INCREASE MONDAY THE COMPANY BELIEVES THAT RATES ARE STILL AT ATTRACTIVE LEVELS AND THAT THE HOUSING MARKET WILL CONTINUE TO BE STRONG PLUM CREEK WHICH LARGELY USES ITS OWN TIMBER IN ITS MILLS HAS BENEFITED FROM HIGHER LOG AND LUMBER PRICES AS A RESULT OF A VIRTUAL SHUTDOWN IN LOGGING ON FEDERAL LAND IN THE NORTHWEST A PLAN BY THE CLINTON ADMINISTRATION WOULD CUT LOGGING TO ABOUT 20 OF THE PEAK LEVELS OF THE 1980S IN AN EFFORT TO SAVE THE RARE SPOTTED OWL LUMBER PRICE INCREASES ARE EXPECTED TO MODERATE TO ABOUT 10 THIS YEAR COMPARED WITH 23 LAST YEAR MS IRVINE SAID PLYWOOD PRICES WHICH HAVE SOFTENED SOMEWHAT THIS YEAR MAY INCREASE ABOUT 5 COMPARED WITH 21 IN 1993 SHE SAID 9404220020 940422 BUSINESS BRIEF AVON PRODUCTS INC FIRM POSTS 157 MILLION LOSS FOR 1ST PERIOD AFTER CHARGE AVON PRODUCTS INC NEW YORK POSTED A 157 MILLION FIRSTQUARTER NET LOSS REFLECTING AN ACCOUNTING CHARGE THE DIRECT SELLER OF BEAUTY PRODUCTS SAID THAT EXCLUDING THE CHARGE PROFIT FROM CONTINUING OPERATIONS ROSE 20 HELPED BY GAINS IN ITS US OPERATIONS THE FIRSTQUARTER LOSS EQUAL TO 22 CENTS A SHARE WAS AFTER A 452 MILLION NONCASH CHARGE FOR ACCOUNTING CHANGES MOSTLY RELATED TO POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS IN THE YEAREARLIER QUARTER AVON'S NET LOSS WAS 929 MILLION OR 129 A SHARE AFTER A CHARGE FOR ACCOUNTING CHANGES AND DISCONTINUED OPERATIONS FIRSTQUARTER SALES INCREASED 85 TO 9136 MILLION IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AVON SHARES CLOSED AT 6025 UP 150 OR 26 9404220019 940422 POLITICS & POLICY INCREASE IN RATES MAY DOMINATE G7 WEEKEND MEETING BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE BOND MARKET IS CASTING A LONG SHADOW OVER THIS WEEKEND'S MEETING OF FINANCE MINISTERS AND CENTRAL BANKERS FROM THE WORLD'S MAJOR INDUSTRIALIZED COUNTRIES BUT OFFICIALS AREN'T LIKELY TO DO MUCH MORE THAN EXPRESS CONCERN SINCE THE PREVIOUS MEETING OF THE GROUP OF SEVEN A KIND OF COORDINATING COMMITTEE FOR THE WORLD ECONOMY LONGTERM INTEREST RATES HAVE RISEN SHARPLY THREATENING THE PROSPECTS FOR THE LONGAWAITED ECONOMIC RECOVERY IN THE INDUSTRIALIZED WORLD THE YIELD ON 30YEAR US TREASURY BONDS FOR INSTANCE IS AROUND 725 UP FROM AROUND 67 AT THE LATEFEBRUARY MEETING OF THE G7 IN FRANKFURT AND OFFICIALS AROUND THE WORLD ARE CLEARLY WORRIED TREASURY SECRETARY LLOYD BENTSEN SAID YESTERDAY AS HE DOES ALMOST DAILY NOW THAT THE RISE IN RATES IS UNWARRANTED AND HE EXPRESSED CONCERN ABOUT THE EFFECT ON THE US ECONOMY BEFORE LEAVING FOR WASHINGTON GERMAN FINANCE MINISTER THEO WAIGEL SPOKE OF THE URGENT NEED TO RESTORE THE CONFIDENCE OF INVESTORS AND THE INTERNATIONAL MONETARY FUND ADDING ITS VOICE TO THOSE PROTESTING THAT THE MARKET HAS OVERREACTED SAID THIS WEEK THAT LONGTERM RATES HAVE RISEN MORE THAN CAN BE ATTRIBUTED TO ECONOMIC DEVELOPMENTS LONGTERM INTEREST RATES IN THE US HAVE RISEN ROUGHLY A FULL PERCENTAGE POINT IN THE PAST THREE MONTHS AND CLINTON ADMINISTRATION ECONOMISTS HAVE ESTIMATED THAT IF SUSTAINED THAT COULD HAVE THE SAME CONTRACTIONARY EFFECT AS A 60 BILLION TAX INCREASE BUT MICHAEL MUSSA THE CHIEF IMF ECONOMIST WHILE ARGUING THAT LONGTERM RATES IN THE US HAVE RISEN MORE THAN INFLATION PROSPECTS WARRANT CALLED THE INCREASE A NOT NECESSARILY UNDESIRABLE REACTION TO GROWTH PROSPECTS IN THE US AS FEDERAL RESERVE OFFICIALS DO THE IMF FEARS THAT WITHOUT HIGHER INTEREST RATES THE US ECONOMY WILL GROW TOO FAST AND GENERATE INCREASED INFLATION OUTSIDE THE US HOWEVER THERE ISN'T ANY INDICATION OF EXCESSIVE GROWTH THE IMF DESCRIBED THE JAPANESE RECOVERY AS FRAGILE AND SAID EUROPE'S NASCENT RECOVERY WON'T GATHER ENOUGH MOMENTUM TO REDUCE THE JOBLESS RATE THERE UNTIL WELL INTO 1995 FOR THAT REASON THE BRAKING EFFECTS OF HIGHER LONGTERM RATES ARE PARTICULARLY UNWELCOME US TREASURY UNDERSECRETARY LAWRENCE SUMMERS HAS ARGUED THAT ONE REASON FOR THE RISE IN LONGTERM RATES WAS THE MARKETS' DISAPPOINTMENT THAT THE GERMAN BUNDESBANK HADN'T CUT INTEREST RATES MORE RAPIDLY GIVEN THE SLACK THAT STILL EXISTS IN CONTINENTAL EUROPE MR BENTSEN SAID YESTERDAY IN WHAT HAS BECOME A FAMILIAR REFRAIN THERE'S STILL ROOM TO REDUCE INTEREST RATES FURTHER HE ALSO REPEATED THE US VIEW THAT JAPAN NEEDS TO DO MORE TO STIMULATE DOMESTIC DEMAND THE G7 MEETING COINCIDES WITH THE SEMIANNUAL MEETINGS OF THE IMF AND THE WORLD BANK THE IMF THIS WEEK APPROVED A NEW 15 BILLION LOAN TO RUSSIA WITH THE PROMISE OF MORE TO COME IF RUSSIA REDUCES ITS INFLATION RATE AND CONTINUES THE TRANSITION TO A MARKET ECONOMY NEVERTHELESS AS IMF MANAGING DIRECTOR MICHEL CAMDESSUS PURSUES HIS CAMPAIGN TO INCREASE THE IMF'S RESOURCES SOME G7 OFFICIALS SUGGEST THAT THE IMF HAS BEEN OVERLY CAUTIOUS IN DEPLOYING THE SUBSTANTIAL RESOURCES IT ALREADY HAS A SUBJECT THAT COULD ARISE AT SUNDAY AFTERNOON'S MEETING MR BENTSEN SAID THE MINISTERS DON'T PLAN TO ISSUE A COMMUNIQUE AFTER THEIR SUNDAY SESSION THE G7 CONSISTS OF THE US GERMANY JAPAN BRITAIN CANADA FRANCE AND ITALY RUSSIAN OFFICIALS WILL JOIN THEIR G7 COUNTERPARTS FOR PART OF SUNDAY'S MEETING KENNETH H BACON CONTRIBUTED TO THIS ARTICLE 9404220018 940422 NUCOR REPORTS PROFIT FOR THE FIRST QUARTER ARMCO HAD A LOSS A WALL STREET JOURNAL NEWS ROUNDUP NUCOR CORP EXPECTS STRONGER EARNINGS IN THE SECOND QUARTER FUELED BY RISING SALES AND IMPROVING MARGINS SEPARATELY ARMCO INC REPORTED A NET LOSS OF 272 MILLION OR 30 CENTS A SHARE FOR THE FIRST QUARTER NUCOR A CHARLOTTE NCBASED STEELMAKER REPORTED SHARPLY HIGHER EARNINGS FOR ITS FIRST QUARTER ENDED APRIL 3 WITH EARNINGS INCREASING TO 349 MILLION OR 40 CENTS A SHARE COMPARED WITH 217 MILLION OR 25 CENTS A SHARE A YEAR EARLIER THE COMPANY ALSO EXPECTS EARNINGS IMPROVEMENTS THROUGH 1994 SAID SAMUEL SIEGEL VICE PRESIDENT AND CHIEF FINANCIAL OFFICER NUCOR EARNED 1235 MILLION OR 142 A SHARE IN 1993 ALSO NUCOR IS EXPANDING TWO OF ITS THINSLAB SHEET MILLS IN ARKANSAS AND INDIANA THE SHEET MILL UNIT BOLSTERED BY STRONG DEMAND FROM THE AUTOMOTIVE AND APPLIANCE INDUSTRIES IS THE COMPANY'S STRONGEST SECTOR MR SIEGEL SAID THE EXPANSIONS WILL ADD 80 TO CAPACITY WHEN FULLY OPERATIONAL ARMCO A PITTSBURGHBASED STEEL COMPANY SAID ITS DECLINE WAS MAINLY CAUSED BY LOSSES AT ITS EMPIREDETROIT STEEL DIVISION INCLUDING A 20 MILLION SPECIAL CHARGE FROM AN ANNOUNCED TEMPORARY IDLING OF THE PLANT'S CARBON STEEL FACILITIES ARMCO HAD A YEAREARLIER LOSS OF 3295 MILLION OR 322 A SHARE CAUSED MAINLY BY A SPECIAL CHARGE OF 3075 MILLION FOR ADOPTING NEW ACCOUNTING RULES DESPITE THE LATEST LOSS ARMCO SAID FIRM DEMAND FOR ITS AUTOMOTIVE AND ELECTRICAL STEEL PRODUCTS LED TO SHARPLY INCREASED OPERATING PROFIT FOR ITS CORE SPECIALTY FLATROLLED STEEL BUSINESS THE SEGMENT HAD AN OPERATING PROFIT OF 301 MILLION ON SALES OF 2632 MILLION COMPARED WITH 199 MILLION ON SALES OF 2609 MILLION A YEAR EARLIER 9404220015 940422 TECHNOLOGY MCI'S NET ROSE 38 IN 1ST QUARTER AS FIRM OUTSTRIPPED ITS RIVALS NEW YORK MCI COMMUNICATIONS CORP'S FIRSTQUARTER EARNINGS GREW BY 38 AS THE COMPANY CONTINUED TO OUTPACE AT&T CORP AND OTHER LONGDISTANCE RIVALS MCI'S TRAFFIC CLIMBED BY 16 ON AN ANNUAL BASIS OR ALMOST TWICE THE INDUSTRY RATE OF 9 AND MORE THAN 5 SINCE THE PREVIOUS QUARTER THAT WAS THE BEST SHOWING AMONG LONGDISTANCE CARRIERS AND AN INDICATION THAT AT&T'S NEW CONSUMER LONGDISTANCE CAMPAIGNS AREN'T SLOWING DOWN MCI FIRSTQUARTER NET INCOME GREW TO 209 MILLION OR 36 CENTS A SHARE FROM 151 MILLION OR 28 CENTS A SHARE A YEAR AGO WHEN MCI TOOK A 17 MILLION CHARGE FOR EARLY DEBT RETIREMENT REVENUE CLIMBED 15 TO 322 BILLION FROM 281 BILLION THE ECONOMY IS HEATING UP AND A GOOD INDICATOR OF THIS IS THE PHONE INDUSTRY SAID DOUGLAS L MAINE MCI'S CHIEF FINANCIAL OFFICER IN AN INTERVIEW THIS LOOKS LIKE THE BEST YEAR FOR THE LONGDISTANCE INDUSTRY SINCE 1988 HE ADDED CITING BETTER NUMBERS AT AT&T AND SPRINT CORP AS WELL AS THE REGIONAL BELL COMPANIES MR MAINE ATTRIBUTED MCI'S LATEST GROWTH TO GAINS IN TOLLFREE 800 REVENUES WHICH ROSE BY NEARLY 25 IN THE QUARTER AND TO INCREASES IN INTERNATIONAL TRAFFIC MCI SHOULD GET A FURTHER PROFIT BOOST FROM NEW LOCAL NETWORKS IT IS INSTALLING TO AVOID HIGH FEES FROM THE BABY BELLS AND OTHER LOCAL PHONE COMPANIES MR MAINE SAID THE COMPANY HAS BEGUN INSTALLING ITS ATLANTA LOCAL NETWORK UNDER A PROJECT CALLED MCI METRO AND MCI SHOULD HAVE MAJOR PORTIONS OF NEW NETWORKS IN DALLAS AND LOS ANGELES BY THE END OF THE YEAR IN LATE NASDAQ STOCK MARKET TRADING MCI SHARES WERE DOWN 125 CENTS AT 24 9404220014 940422 BUSINESS BRIEF CUMMINS ENGINE CO FIRSTPERIOD PROFIT ROSE 33 BUT PRICE OF STOCK DECLINES CUMMINS ENGINE CO'S STOCK PRICE SLIPPED EVEN THOUGH THE DIESEL ENGINE MAKER SAID FIRSTQUARTER EARNINGS ROSE ABOUT 33 AND PREDICTED HIGHER SECONDQUARTER RESULTS IN LATE TRADING AT THE NEW YORK STOCK EXCHANGE CUMMINS OF COLUMBUS IND FELL 1875 A SHARE TO 4150 A SHARE CUMMINS SAID IT EARNED 546 MILLION OR 135 A SHARE COMPARED WITH 411 MILLION OR 112 A SHARE FOR THE SIMILAR 1993 QUARTER FIRSTQUARTER SALES AT CUMMINS ROSE 48 TO 11 BILLION FROM 105 BILLION A YEAR EARLIER PETER HAMILTON CUMMINS CHIEF FINANCIAL OFFICER SAID THE COMPANY EXPECTS HEAVY TRUCK MANUFACTURERS TO GENERATE EXCELLENT UNIT SALES THIS YEAR HE REFUSED TO COMMENT ON THE DECLINE IN THE COMPANY'S STOCK PRICE 9404220013 940422 CENTRAL EUROPE FINDS FUTURE IS PLASTIC AS BANKS RUSH TO PROMOTE CREDIT CARDS BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL IN CENTRAL EUROPE WHERE THE BLACK MARKET ONCE RULED CREDIT CARDS ARE MAKING SOME RAPID INROADS FOR DECADES PAYING BY PLASTIC WAS RESERVED FOR THE WEALTHY WESTERNER AT A FEW STATERUN TOURIST HOTELS AND GIFT SHOPS NOW THE BANKS SPROUTING THROUGHOUT THE REGION COMPETE AGGRESSIVELY TO PUT CREDIT CARDS IN PEOPLE'S HANDS AND WIN THEIR ACCEPTANCE BY MERCHANTS THE REGION HAS BECOME A MAJOR BATTLEFRONT FOR VISA INTERNATIONAL AND EUROPAY INTERNATIONAL THE BELGIUMBASED CONSORTIUM THAT HANDLES BOTH MASTERCARD AND EUROCARD IN EUROPE THE TWO BANK CONSORTIA ARE ADOPTING RADICALLY DIFFERENT STRATEGIES AS THEY SIGN UP THE REGION'S FINANCIAL INSTITUTIONS FOR BOTH VISA AND EUROPAY THE GROWTH OF BUSINESS EXCEEDS THAT OF ALMOST EVERY OTHER REGION IN THE WORLD IT'S BIG BANG TIME SAYS CRAIG BROWNE EUROPAY'S BUSINESSCOORDINATION MANAGER FOR EASTERN EUROPE THE ACTUAL NUMBERS TODAY AREN'T SO IMPORTANT BECAUSE IN A YEAR IT WILL BE A WHOLE NEW BALL GAME NEVERTHELESS THE NUMBERS TELL PART OF THE STORY ONLY THREE YEARS AGO THE NUMBER OF CREDIT CARDS ISSUED IN CENTRAL EUROPE WAS EFFECTIVELY ZERO EUROCARD/MASTERCARD BEGAN ISSUING ITS FIRST CARDS IN HUNGARY ONLY IN 1991 TODAY ABOUT 300000 CARDS ARE IN CONSUMERS' HANDS THROUGHOUT THE REGION INDUSTRY OFFICIALS SEE THE POTENTIAL MARKET AT 30 MILLION CARDS EXCLUDING RUSSIA AND THE REST OF THE COMMONWEALTH OF INDEPENDENT STATES WHERE MORE THAN 6000 CARDS HAVE BEEN ISSUED AND WHILE EXECUTIVES FROM CREDITCARD CONSORTIA SAY THEY AREN'T SURE WHAT THE POTENTIAL PROFITS TO THEIR MEMBER BANKS ARE THEY PREDICT THAT WITHIN A FEW YEARS TRANSACTIONS TOTALING WELL INTO THE BILLIONS OF DOLLARS WILL BE DONE WITH PLASTIC THE GROWTH RATES ARE SO ENORMOUS THAT IT'S DIFFICULT TO COMPREHEND THEM SAYS RICHARD CULLEN VICE PRESIDENT FOR EUROPEAN DEVELOPMENT AT VISA INTERNATIONAL A SIMILAR EXPLOSION IS OCCURRING WITH WHAT THE INDUSTRY CALLS ACCEPTANCE OR THE NUMBER OF MERCHANTS THAT WILL TAKE PAYMENT BY CREDIT CARD MORE THAN ANYTHING ELSE PLANTING CREDIT CARDS IN CENTRAL EUROPE REQUIRES A CULTURAL REVOLUTION PEOPLE ARE USED TO CASH SAYS ADRZEJ KRZEMINSKI HEAD OF INTERNATIONAL BANKING AT POLAND'S BANK INICJATYW GOSPODARCYCH WE WANT TO GET PEOPLE ACCUSTOMED TO USING THIS LITTLE PIECE OF PLASTIC IN THEIR WALLETS CONSEQUENTLY BANKS ARE RELUCTANT TO ISSUE WHAT WESTERNERS CONSIDER TYPICAL CREDIT CARDS WITH SO FEW PEOPLE WITH A CREDIT HISTORY THE BANKS AND CARD CONSORTIA PREFER TO ISSUE EASTERN EUROPEANS DEBIT CARDS THAT REQUIRE PAYMENT IN ADVANCE OF THE 291000 CARDS ISSUED BY EUROPAY MEMBER BANKS FOR EXAMPLE ONLY 95000 ARE PAY LATER CARDS THOSE WHO DO RECEIVE TRADITIONAL CREDIT CARDS TEND TO BE PEOPLE WHO NEED THE CARDS FOR TRAVEL IN THE WEST THE CARDS' TARGET CUSTOMERS REFLECT THEIR RARITY OUR PHILOSOPHY IS TO SERVICE MAINLY CORPORATE CLIENTS SAYS MR KRZEMINSKI WHOSE BANK IS A MEMBER OF THE VISA CONSORTIUM MOVING TO A CREDITCARD CARRYING SOCIETY IS A DIFFICULT TRANSITION NOT ONLY ARE MOST PEOPLE STILL EXPLORING THE JOY OF HAVING A BANK ACCOUNT BUT THE BANKS THEMSELVES ARE CHANGING RAPIDLY WE'RE TALKING ABOUT A QUANTUM LEAP SAYS EUROPAY'S MR BROWNE THEY'VE LEAPFROGGED PAPER CHECKS AND OTHER STEPS TO GO STRAIGHT TO ELECTRONICS AS A METHOD OF PAYMENT GIVEN THE FLEDGLING AND UNCERTAIN STATUS OF THE MARKET THE CARD CONSORTIA ARE EXPLORING WAYS TO PUT DOWN THE BEST ROOTS THE RESULT IS TWO DIFFERENT STRATEGIES THAT CAN BEST BE DESCRIBED AS A TOPDOWN APPROACH BY VISA AND A BOTTOMUP APPROACH BY EUROPAY VISA'S STARTING POINT IS ITS CUSTOMER BASE OUR NO 1 OBJECTIVE IS TO PROVIDE CURRENT CARDHOLDERS WITH THE ABILITY TO USE THEIR CARD IN KEY LOCATIONS SAYS VISA'S MR CULLEN TO THAT END VISA AND ITS NEWLY ESTABLISHED MEMBER BANKS IN EASTERN EUROPE ARE BUSY SIGNING UP MERCHANTS THROUGHOUT THE MAJOR CITIES FREQUENTED BY WESTERN AND ASIAN VISITORS THE CONSORTIUM IS EVEN SHELLING OUT ITS OWN MONEY TO EQUIP LOCAL SHOPKEEPERS AND THEIR BANKS WITH THE NECESSARY HARDWARE SOFTWARE AND SATELLITE EQUIPMENT TO BYPASS LOCAL TELEPHONE LINES AND LINK THEM INTO THE GLOBAL COMMUNICATIONS NETWORK EUROPAY ON THE OTHER HAND IS BUILDING ITS NETWORK FROM THE GROUND UP THE EUROCARD/MASTERCARD GROUP HAS A TEAM OF ABOUT A DOZEN SPECIALISTS THAT WORKS WITH THE REGION'S BANKS AND HELPS THEM SET UP THEIR OWN ELECTRONIC NETWORKS ISSUE THEIR OWN CARDS AND BUILD THEIR OWN CLIENT BASE IN SHARP CONTRAST TO THE VISA APPROACH EUROPAY HOPES THAT BY PUTTING A EUROCARD/MASTERCARD IN THE POCKETS OF ORDINARY PEOPLE THEIR USE WILL CATCH ON RATHER THAN FOCUS ON ACCEPTANCE WE TOLD THE BANKS WE WERE GOING TO HELP THEM WITH LOCAL DEVELOPMENT SAYS GEOFFROY DE SCHREVEL EUROPAY'S SENIOR MANAGER FOR EASTERN EUROPE EUROPAY ISN'T PUTTING UP ANY SIGNIFICANT MONEY OF ITS OWN RELYING INSTEAD ON THE BANKS TO FUND THEIR OWN NETWORK DEVELOPMENT WHICH CONSORTIUM HAS PICKED THE WINNING STRATEGY THE ANSWER MAY NOT BE APPARENT FOR SEVERAL YEARS AND SO FAR THE WINNER IN EACH MARKET TENDS TO BE THE ONE THAT MOVED FIRST INDUSTRY WATCHERS SAY VISA IS KING IN POLAND AND THE BALTICS BUT EUROCARD/MASTERCARD IS AHEAD IN HUNGARY AND THE CZECH AND SLOVAK REPUBLICS INFIGHTING AMONG BANKS IS LIKELY TO CONTINUE EVEN AS THE MARKET EXPLODES IN THE MEANTIME BRING DOLLARS WE HAVE TO BE REALISTIC SAYS VISA'S MR CULLEN WE SAY TO CUSTOMERS THAT YOU HAVE TO TAKE THE CARDS AND THE TRAVELER'S CHECKS BUT I HAVE TO SAY THAT IN MANY MARKETS CASH IS THE PRIMARY SPENDING REQUIREMENT 9404220012 940422 WHO'S NEWS AT&T CORP AT&T CORP NEW YORK WILLIAM H OLIVER 51 YEARS OLD WAS NAMED TO SUCCEED J KENT PLANCK AS VICE PRESIDENT CORPORATE PUBLIC RELATIONS EFFECTIVE MAY 1 MR OLIVER FORMERLY VICE PRESIDENT OF COMMUNICATIONS AT TRW INC WILL SERVE AS AN OFFICER OF THE COMPANY AND HEAD AT&T'S GLOBAL CORPORATE PUBLIC RELATIONS ORGANIZATION MR PLANCK WHO IS 50 YEARS OLD RETIRED EARLIER THIS YEAR 9404220011 940422 SHIPPING DELAYS BEGIN TO TAKE TOLL ON FIRMS AS TEAMSTERS STRIKE CONTINUES A WALL STREET JOURNAL NEWS ROUNDUP THE 16DAYOLD TEAMSTERS STRIKE AGAINST 20 TRUCKING COMPANIES IS BEGINNING TO SERIOUSLY SQUEEZE SOME BUSINESSES ASK JACK MARINE THE VICE PRESIDENT FOR CAPITAL PANTS CO PHILADELPHIA SAYS HE MAY HAVE TO SHUT DOWN HIS VIRGINIA PANTSMAKING FACTORY FOR WEEKS THE 300EMPLOYEE FAMILYOWNED BUSINESS HAS BEEN AWAITING FABRIC FOR 36000 PAIRS OF WOMEN'S STRETCH TWILL JEANS ON ORDER BY KMART CORP THE FABRIC IS NEARLY 3000 MILES AWAY STRANDED AT A SEALAND CORP DOCK NEAR LOS ANGELES IT'S A MESS FUMES MR MARINE WE WILL PROBABLY HAVE TO START LAYING OFF PEOPLE I'D LIKE THE COUNTRY TO KNOW THERE ARE A LOT OF SMALL BUSINESSES SUFFERING AS 70000 TEAMSTERS TRUCK DRIVERS AND SHIPPING DOCK WORKERS REMAIN IDLED COMPANIES LIKE MR MARINE'S ARE BEGINNING TO RUN INTO BIG PROBLEMS ABOUT HALF OF SOME 70 NATIONAL ASSOCIATION OF MANUFACTURERS MEMBER COMPANIES THAT GATHERED IN WASHINGTON EARLIER THIS WEEK COMPLAINED OF STRIKE DELAYS IN PICKING UP OR SHIPPING GOODS SAYS LAWRENCE FINERAN AN ASSISTANT VICE PRESIDENT FOR THE TRADE GROUP SOME SHIPS THAT SERVE ALASKA WERE IDLED BY THE STRIKE ALTHOUGH GROCERIES AND VITAL SUPPLIES WEREN'T CUT OFF AND OTHER SHIPMENTS WILL RESUME SOON IN NEW ENGLAND STORES ARE RUNNING LOW ON ACTION TOYS MANY OF WHICH ARE MADE IN ASIA COMPANIES SEEKING ALTERNATIVE SHIPPERS CONSISTENTLY FIND NONUNION OR NONSTRIKING CARRIERS OVERBOOKED IT'S LIKE A CASE OF CLOGGED ARTERIES LAMENTS TONY REED CORPORATE TRANSPORTATION MANAGER AT LESCO INC A MAKER AND DISTRIBUTOR OF GOLFCOURSE PRODUCTS IN ROCKY RIVER OHIO OTHER SHIPPERS HAVE ALMOST GROUND TO A HALT DUE TO EXCESS FREIGHT ADDS MIKE WARD TRANSPORTATION SUPERVISOR AT THE COLUMBUS MISS PLANT OF UT AUTOMOTIVE INC A UNIT OF UNITED TECHNOLOGIES CORP THEY ARE WORKING AROUND THE CLOCK AND ARE MAKING MISTAKES AND LOSING SHIPMENTS SUCH TROUBLES ARE BEGINNING TO WORRY GOVERNMENT OFFICIALS IN A RECENT INTERVIEW FEDERAL RESERVE GOVERNOR LAWRENCE LINDSEY FRETTED INVENTORIES ARE QUITE LOW RIGHT NOW AND DISRUPTIONS SUCH AS THIS ONE CAN EASILY CAUSE PROBLEMS NEGOTIATORS FOR THE TEAMSTERS AND THE 20 COMPANIES CONTINUED TALKS YESTERDAY THE COMPANIES ARE FACING THE THREAT THAT BUSINESS WILL MOVE PERMANENTLY TO NONUNION TRUCKERS AT THE SAME TIME THE UNION IS FACING A CASH CRUNCH WITH STRIKE BENEFITS SIPHONING 14 MILLION A WEEK FROM ITS COFFERS THE FREIGHT COMPANIES ARE NOT MAKING MUCH MONEY AND ARE TRYING TO BUST THE UNION WHILE THE EMPLOYEES WANT JOB SECURITY OBSERVES DAVID MAY PRESIDENT OF DC MAY CORP A DURHAM NC TEXTILE MAKER IN THE MEANTIME THEY'RE KILLING US THE CUSTOMERS WHILE THEY'RE BICKERING BACK AND FORTH ACROSS THE NATION COMPANIES ARE WEIGHING IN WITH TALES OF WOE IN WEYMOUTH MASS JOHN MANTALOS WHO IS OPENING A NEW CARD STORE CALLED MARCY'S CARDS & GIFTS SAYS HIS ENTIRE INITIAL ORDER INCLUDING EASTER CARDS REMAINS IN A FREIGHT TERMINAL AFTER BEING SHIPPED FROM CLEVELAND VIA CONSOLIDATED FREIGHTWAYS THE DAY BEFORE THE STRIKE BEGAN THE DISTRIBUTOR CARLTON CARD IS SENDING A NEW ORDER IN SUBURBAN PITTSBURGH'S CENTURY III MALL THE MANAGER OF A ONE HOUR MOTO PHOTO STORE LAST WEEK WAS FORCED TO DRIVE 10 HOURS ROUND TRIP TO CINCINNATI TO GET PHOTOGRAPHIC PAPER CLOSER STORES IN CLEVELAND AND COLUMBUS WERE RUNNING LOW THEMSELVES AND COULDN'T HELP IN CHICAGO KROCH'S & BRENTANO'S BOOKSTORE CHAIN RAN A BIG AD IN YESTERDAY'S NEWSPAPERS FOR MICHAEL JORDAN'S NEW LIFEPHILOSOPHY BOOK I CAN'T ACCEPT NOT TRYING BUT A BULK SHIPMENT OF THE BOOK HASN'T ARRIVED AT THE COMPANY'S FLAGSHIP STORE THE CHAIN'S PRESIDENT WILLIAM RICKMAN WORRIES THAT IF THE BOOK IS HOT WE WON'T BE ABLE TO KEEP UP LIFE IS EVEN WORSE FOR PUBLISHERS GROUP WEST AN EMERYVILLE CALIF DISTRIBUTOR FOR ABOUT 200 SMALL PUBLISHERS THIS IS A NIGHTMARE SAYS CUSTOMER SERVICE MANAGER ERIC GREEN TWO HOT TITLES INCLUDING A NEW BOOK FROM PUBLISHER CARROLL & GRAF CALLED MIA & WOODY ARE AMONG 150 SHIPMENTS STUCK IN WAREHOUSES CASUAL CORNER A UNIT OF PITTSBURGHBASED US SHOE IS HAVING TROUBLE GETTING SPRING CLOTHES TO ITS 700 STORES IN THE OVERALL SCHEME OF THINGS I WOULD NOT CALL IT A CRISIS AN INCONVENIENCE BUT NOT A CRISIS SAYS A SPOKESMAN ANOTHER RETAILER ODDSNENDS INC IN BUFFALO NY HAS SIX TRAILERS OF MERCHANDISE ABOUT 20 OF A TYPICAL WEEK'S SHIPMENTS WAITING ON DOCKS INDUSTRIAL COMPANIES ARE HAVING PROBLEMS TOO CLIFFORD B HANNAY & SON INC A WESTERLO NY MAKER OF REELS USED FOR WINDING INDUSTRIAL HOSE AND CABLE HAS THREE DAYS OF SHIPMENTS STUCK IN TERMINALS SOME CUSTOMERS ARE WILLING TO WAIT OUT THE STRIKE BUT OTHERS ARE ASKING FOR DUPLICATE SHIPMENTS VIA NONTEAMSTER CARRIERS OR NONSTRIKING UNITED PARCEL SERVICE INC HANNAY'S PRESIDENT ROGER HANNAY SAYS HE DOESN'T KNOW WHO WILL PAY FOR THE DUPLICATE CUSTOM MADE PRODUCTS FOR MANY COMPANIES THE PROBLEMS ARE MORE ANNOYANCES THAN REAL BUSINESSSTOPPERS CROWLEY MILNER & CO A DETROITBASED RETAILER SAYS 200000 OF COSMETICS SPORTSWEAR AND MEN'S CLOTHING HASN'T ARRIVED BUT THE COMPANY ISN'T HAVING SHORTAGES YET AT THE ARMSTRONG LOCK & SUPPLY CO ANNUAL TRADE SHOW EARLIER THIS MONTH THREE MAKERS OF SECURITY PRODUCTS COULDN'T GET THEIR DISPLAYS TO ATLANTA MISSING A SELLING OPPORTUNITY AND ELECTRONICS MAKER APPLIED INNOVATIONS INC FOUND ITSELF IN A FRUSTRATING SITUATION WHILE MAKING A CORPORATE MOVE TO DUBLIN OHIO WAREHOUSE SHELVING STILL HASN'T ARRIVED KEEPING THE COMPANY FROM STACKING PRODUCTS PRESIDENT GERARD MOERSDORF SAYS FURNITURE FOR THE PLANT'S NEW LUNCHROOM AND TRAINING ROOM WERE CAUGHT IN TRUCKING PURGATORY UNTIL THEY SHOWED UP WEDNESDAY IT WAS TOO LATE THE COMPANY ALREADY HAD BOUGHT MORE 9404220010 940422 SEPRACOR BUYS DRUG FACTORY MARLBOROUGH MASS SEPRACOR INC SAID IT COMPLETED THE PURCHASE OF A BULKDRUG FACTORY NEAR HALIFAX NOVA SCOTIA FOR 36 MILLION CANADIAN DOLLARS US26 MILLION THE COMPANY SAID IT INTENDS TO USE THE FACILITY TO MAKE SINGLEISOMER DRUGS AND DRUG INTERMEDIATES 9404220009 940422 MCDONALD'S EARNINGS CLIMBED 12 IN FIRST QUARTER AS REVENUE ROSE 9 OAK BROOK ILL MCDONALD'S CORP REPORTED A 12 GAIN IN FIRSTQUARTER EARNINGS DESPITE HIGHER SALES EXPENSES AND WEAK FOREIGN CURRENCIES THE FASTFOOD GIANT SAID EARNINGS TOTALED 2434 MILLION OR 65 CENTS A SHARE COMPARED WITH 2183 MILLION OR 57 CENTS A YEAR AGO WHEN FIERCE STORMS CURTAILED SALES IN MUCH OF THE US THIS YEAR THERE WERE 77 MILLION OR 21 FEWER SHARES OUTSTANDING REVENUE FOR THE QUARTER TOTALED 18 BILLION UP 9 WHILE SYSTEMWIDE SALES WHICH INCLUDE THOSE OF FRANCHISEES AND AFFILIATES AS WELL AS COMPANYOPERATED RESTAURANTS REACHED 57 BILLION ALSO A 9 GAIN WHILE THE PERSHARE EARNINGS WERE EXPECTED BY WALL STREET MCDONALD'S SHARES ROSE 2 TO 58875 IN LATE COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MCDONALD'S CITED RESTAURANT EXPANSION AND THE CONTINUING POPULARITY OF COMBINATIONITEM MEALS IN REPORTING 6 REVENUE GAINS AND A 5 OPERATINGPROFIT IMPROVEMENT IN THE US THE COMPANY OPENED 40 RESTAURANTS IN THE US AND 85 OVERSEAS DURING THE QUARTER FOR A TOTAL OF 14118 IN 71 COUNTRIES A SMOKING BAN AT ALL 1458 US COMPANYOPERATED STORES WHICH WENT INTO EFFECT DURING THE QUARTER HAD NO APPARENT NEGATIVE IMPACT ON RESULTS A COMPANY SPOKESMAN SAID SO FAR ABOUT 3500 DOMESTIC FRANCHISED RESTAURANTS ALSO HAVE GONE SMOKELESS OVERSEAS MCDONALD'S REPORTED EXCELLENT SALES IN MANY COUNTRIES ALTHOUGH JAPAN ITS LARGEST FOREIGN MARKET ONCE AGAIN POSTED DISAPPOINTING RESULTS BECAUSE OF THE LOCAL ECONOMY THE COMPANY SAID REVENUE OUTSIDE THE US ROSE 12 CONSTRAINED BY WEAKER CURRENCIES PARTICULARLY IN GERMANY CANADA AND FRANCE 9404220008 940422 TODAY'S MAN REVISES OUTLOOK MOORESTOWN NJ TODAY'S MAN INC SAID IT WILL REPORT LOWERTHANEXPECTED FISCAL FIRSTQUARTER EARNINGS DUE IN PART TO WEAK APRIL SAMESTORE SALES THAT STEMMED FROM A SHIFT IN THE EASTER CALENDAR THE MEN'S CLOTHING RETAILER ADDED THAT ADVERSE WEATHER IN FEBRUARY ALSO HURT SALES THE COMPANY SAID IT REMAINED COMFORTABLE WITH ANALYSTS' ESTIMATES OF EARNINGS ABOUT 80 CENTS A SHARE FOR THE YEAR FOR THE FIRST QUARTER ENDED MAY 1 1993 TODAY'S MAN REPORTED NET INCOME OF 245500 OR THREE CENTS A SHARE ON SALES OF 311 MILLION 9404220007 940422 MARKETING & MEDIA ADVERTISING VIDEO GAMES AND YOYOS TANGLE IN DUNCAN'S BID TO BOUNCE BACK BY KEVIN GOLDMAN DUNCAN TOYS USED TO HAVE THE WORLD ON A STRING IN THE 1950S AND 1960S MILLIONS OF YOUNGSTERS PASSED TIME FIDDLING WITH THE DUNCAN YOYO ADROIT KIDS HUNG OUT IN SCHOOLYARDS AND BACKYARDS OR ON STOOPS PERFORMING SUCH TRICKS AS MAN ON THE FLYING TRAPEZE AND LOOP THE LOOP BUT THE SIMPLE CHEAP TOY EVENTUALLY WENT THE WAY OF THE HULA HOOP DISPLACED BY GLITZIER ELECTRONIC COMPETITORS NOW DUNCAN AS MARKET LEADER IS POISED TO REINTRODUCE ITS YOYOS TO A GENERATION REARED ON FLASHIER MORE SOPHISTICATED TOYS A NEW DUNCAN TELEVISION CAMPAIGN FROM GOLDBERG FOSSA SEID ADVERTISING IS SCHEDULED TO BEGIN TOMORROW ITS DAUNTING TASK POSITIONING THE VIDEOGAME CRAZE AS PASSE AND FOR NERDS WHILE PORTRAYING THE INNOCENT YOYO AS HOT AND FOR COOL DUDES THAT'S AS CHALLENGING AS TRYING TO COAX A YOYO TO DO ROCK THE BABY EVEN THOUGH THE AVERAGE YOYO SELLS FOR A MERE 3 THE TOY COMPETES FOR VALUABLE SHELF SPACE NEAR CASH REGISTERS IN SUCH CHAINS AS TOYS R US TOY ANALYSTS SAY THESE CHAINS WOULD RATHER GIVE THE SPACE TO MERCHANDISE THAT'S HIP AND EASIER TO SELL ALSO DUNCAN HAS TO CONVINCE CHILDREN THAT THE YOYO FIRST IMPORTED INTO 18TH CENTURY ENGLAND FROM CHINA AND INTRODUCED IN THE US IN 1929 ISN'T AN ANTIQUATED THROWBACK TO THEIR PARENTS' GENERATION IT'S GOING TO BE TOUGH SAYS GARY JACOBSON A TOY ANALYST FOR KIDDER PEABODY NOWADAYS COMPANIES ARE COMPETING FOR A KID'S TIME WHETHER IT'S WITH A SKATEBOARD OUTDOORS OR ACTION FIGURES INDOORS DUNCAN A UNIT OF FLAMBEAU PRODUCTS IN MIDDLEFIELD OHIO CHARACTERIZES THE YOYO AS A SLEEPING GIANT UNLIKE THE TOY ITSELF DUNCAN'S YOYO SALES HAVEN'T GYRATED MUCH OF LATE ANNUAL SALES HAVE DECLINED FROM A HIGH OF 20 MILLION IN THE 1960S TO ITS CURRENT LOW OF ABOUT 5 MILLION HEADING THE NEW MARKETING AND ADVERTISING EFFORT IS MICHAEL CAFFREY DUNCAN'S CHEERFUL 36YEAROLD NATIONAL SALES AND MARKETING MANAGER WHOSE FIRST JOB OUT OF HIGH SCHOOL IN TUCSON ARIZ WAS AS A YOYO DEMONSTRATOR MR CAFFREY'S STRATEGY IS BASED ON THE BELIEF THAT IF YOU PLACE A YOYO IN THE PALM OF A YOUNGSTER WHO CAN PERFORM TRICKS OTHER KIDS WILL FOLLOW SUIT AND BUY THE TOY MR CAFFREY PICKED 500 INDIANAPOLIS YOUNGSTERS TO RECEIVE UNSOLICITED FREE YOYOS AND TRAINING KITS SHOWING HOW TO PERFORM SIMPLE TRICKS THE NAMES WERE CULLED FROM THE MAILING LIST OF TIME WARNER'S SPORTS ILLUSTRATED FOR KIDS AS MOTIVATION MR CAFFREY WILL PAY 25 TO ANY YOUNGSTER WHO CAN SUCCESSFULLY COMPLETE A SIMPLE TRICK DURING ONE OF HIS VISITS TO AREA STORES BUT INDIANAPOLIS IS JUST THE FIRST BEACHHEAD IN DUNCAN'S COMEBACK CAMPAIGN MR CAFFREY PLANS TO MOVE ON FROM THERE TO RALEIGHDURHAM NC HARTFORD AND NEW HAVEN CONN SPRINGFIELD MASS MINNEAPOLIS SAN DIEGO AND SAN ANTONIO THE TELEVISION AD WILL BE SEEN IN EACH OF THESE LOCAL MARKETS BUT NOT NATIONALLY AT LEAST INITIALLY DUNCAN PLANS A HEAVY TELEVISION PRESENCE FOR SIX WEEKS IN EACH MARKET ACCORDING TO THE AGENCY DUNCAN PLANS AN AGGRESSIVE CAMPAIGN LEADING UP TO THE SUMMER FOLLOWED BY ONE IN THE FALL YOYOS AREN'T A SUMMER PRODUCT MR CAFFREY SAYS BECAUSE DURING VACATION KIDS DON'T CONGREGATE IN SCHOOLYARDS THE NEW TELEVISION CAMPAIGN IS THE FIRST FOR DUNCAN IN THREE YEARS ERNEST FOSSA PARTNER AND DIRECTOR OF MEDIA SERVICES AT THE AGENCY SAYS IT WILL CAPITALIZE ON THE YOYO'S NOVELTY VALUE FOR MANY YOUNGSTERS THE VIDEO GAME IS A TOY THAT HAS BEEN AROUND KIDS ALL OF THEIR LIVES HE SAYS IT'S FAMILIAR AND OLD THEY DON'T KNOW ABOUT YOYOS WE WANT TO PRESENT THE PERCEPTION THAT VIDEO GAMES ARE OUTDATED THE COMMERCIAL FEATURES A NERD RIGHT OUT OF CENTRAL CASTING A CHUBBY KID WITH GLASSES HARDTOMANAGE HAIR AND UNATTRACTIVE CLOTHES PLAY WITH A DUNCAN YOYO HE SCOFFS CLUTCHING THE JOYSTICK OF A VIDEO GAME THAT'S FOR BABIES CUT TO AN OHSOCOOL KID PERFORMING NIMBLE MOVES WITH A YOYO WHILE THE NERD MUTTERS LISTLESSLY I NEED THE SPEED THE ACTION OF A VIDEO GAME THEN IN THE ULTIMATE PUTDOWN THE COOL KID SAYS IF IT ISN'T A DUNCAN GIVE IT TO HIM GESTURING TO THE CLUELESS KID THE AD WILL BE SEEN ON SUCH CHILDREN'S SHOWS AS BATMAN POWER RANGERS XMEN AND TRANSFORMERS II AND ON CABLE'S NICKELODEON NETWORK THE YOYO MANUFACTURER HOPES IT WILL HELP WITH ITS NAMERECOGNITION PROBLEM CONSUMERS IT SEEMS USUALLY THINK OF DOUGHNUTS WHEN THEY HEAR THE NAME DUNCAN EVEN THOUGH THE DOUGHNUT CHAIN SPELLS IT DUNKIN' I APPLAUD AND RESPECT WHAT DUNCAN IS TRYING TO DO SAYS STEPHEN SANDBERG AN OWNER OF SANCO TOYS A WHOLESALER IN FOXBOROUGH MASS FOR A CERTAIN SEGMENT OF YOUNGSTERS THIS APPROACH CAN BE HIGHLY EFFECTIVE IF A KID THINKS A YOYO IS COOL THAT WILL HELP BUT HE CONTINUES I THINK YOU ALSO HAVE TO TAKE INTO ACCOUNT THAT WHAT WAS COOL IN THE 1950S AND WHAT KEPT A CHILD HAPPY THEN MAY NOT DO THE TRICK IN THE 1990S MR CAFFREY ABOVE ALL HOPES THAT THE DUNCAN YOYO BOUNCES BACK HE IS SUCH A YOYO FANATIC THAT HE INVENTED DUNCAN'S CHIEF COMPETITOR THE YOMEGA BEFORE JOINING THE COMPANY MR CAFFREY IS SURE DUNCAN'S NEW STRATEGY IS SOUND BUT IT ISN'T BASED ON RESEARCH THE AGENCY CAME UP WITH THE PLAN TO GO AFTER VIDEO GAMES IN A PLANNING SESSION WE DIDN'T HAVE TO DO RESEARCH SAYS MR CAFFREY DEMONSTRATING HIS YOYO SKILLS AT THE AGENCY'S OFFICES I KNOW THE YOYO BETTER THAN ANYONE ALIVE THE YOYO IS MY LIFE AND BEGINNING WITH TOMORROW'S KICKOFF CAMPAIGN MR CAFFREY HOPES THAT SUCCESS IS TO BORROW THE NAME OF A YOYO TRICK JUST AROUND THE CORNER 9404220006 940422 POLITICS & POLICY HOUSE VOTES CRIME BILL COVERING DEATH PENALTY MONEY FOR POLICE BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RESPONDING TO RISING PUBLIC FEARS ABOUT CRIME THE HOUSE APPROVED BROAD LEGISLATION EXPANDING THE SCOPE OF THE DEATH PENALTY AND AUTHORIZING BILLIONS OF DOLLARS FOR MORE POLICE OFFICERS PRISONS AND CRIMEPREVENTION PROGRAMS THE CRIME BILL WHICH PASSED BY A 285141 VOTE NOW GOES TO A CONFERENCE COMMITTEE TO NEGOTIATE DIFFERENCES WITH THE SENATEPASSED VERSION HOUSE LEADERS SAY THEY'LL ACCEPT THE SENATE'S PROPOSAL TO CREATE A 22 BILLION TRUST FUND DEDICATED TO ANTICRIME PROGRAMS WHICH WOULD FULLY FINANCE PRESIDENT CLINTON'S CAMPAIGN PLEDGE TO PUT 100000 ADDITIONAL POLICE ON AMERICAN STREETS SPONSORS HOPE TO COMPLETE ACTION AND SEND THE BILL TO MR CLINTON FOR HIS SIGNATURE SOMETIME NEXT MONTH AT A TIME OF HEIGHTENED NATIONAL ATTENTION TO VIOLENT CRIME THE DEBATE OVER THE MEASURE BECAME AN ELECTIONYEAR PLATFORM FOR TOUGH TALK IT WOULD MAKE MORE THAN 60 ADDITIONAL FEDERAL CRIMES FROM GENOCIDE TO FATAL CARJACKING SUBJECT TO THE DEATH PENALTY IN THE PROCESS REPUBLICANS SUCCEEDED IN STRIPPING PROVISIONS THAT WOULD HAVE EXPANDED RIGHTS OF APPEAL FOR DEATHROW INMATES IN SOME CASES AND IN PERMITTING DRUG OFFENSES TO BE USED AS THE THIRD STRIKE ASSURING A LIFE SENTENCE FOR PEOPLE CONVICTED OF REPEATED FEDERAL DRUG OR VIOLENT CRIMES ANOTHER SUCCESSFUL GOP AMENDMENT ORDERED THE REMOVAL OF WEIGHTLIFTING EQUIPMENT FROM FEDERAL PRISONS ON GROUNDS THAT THE EQUIPMENT MAKES SOME INMATES MORE DANGEROUS UPON THEIR RELEASE BUT BY HANDING SOME CRUCIAL VICTORIES TO LIBERALS DEMOCRATIC LEADERS MANAGED TO PRESERVE THEIR PARTY'S COALITION AND CLAIM VICTORY ON THE POLITICALLY VOLATILE SUBJECT DEMOCRATS HAVE RECAPTURED THIS ISSUE SAID REP CHARLES SCHUMER D NY A PRINCIPAL SPONSOR WHO DESCRIBED THE BILL AS AT ONCE TOUGH ON PUNISHMENT AND SMART ON PREVENTION THE MOST IMPORTANT NOD TO LIBERAL DEMOCRATS INCLUDING THE BLACK AND HISPANIC CAUCUSES WAS THE BILL'S RACIAL JUSTICE PROVISION PERMITTING CONVICTS TO USE STATISTICAL STUDIES TO CHALLENGE THEIR DEATH SENTENCES AS UNLAWFULLY DISCRIMINATORY THE PROVISION SURVIVED NARROWLY WEDNESDAY ON A 217212 VOTE AS HOUSE LEADERS OVERCAME REPUBLICAN ARGUMENTS THAT IT WOULD RESULT IN RACIAL QUOTAS ON DEATH ROW AND IMPEDE CAPITAL PUNISHMENT THIS BILL ELIMINATES THE DEATH PENALTY AS WE'VE KNOWN IT COMPLAINED HOUSE GOP WHIP NEWT GINGRICH OF GEORGIA ACCORDING TO THE NAACP LEGAL DEFENSE FUND BLACKS NOW REPRESENT SOME 40 OF ALL DEATHROW INMATES MORE THAN TRIPLE THEIR PROPORTION OF THE POPULATION THE RACIALJUSTICE PROVISION MAY NOT SURVIVE HOUSESENATE NEGOTIATIONS HOWEVER THE SENATE HASN'T PASSED IT AND THE WHITE HOUSE FEARING POLITICAL FALLOUT ON THE POLITICALLY SENSITIVE DEATHPENALTY ISSUE HAS SHRUNK FROM TAKING A HIGHPROFILE ROLE IN ITS BEHALF ONE MAJOR UNRESOLVED ISSUE IS WHETHER THE FINAL COMPROMISE WILL INCLUDE THE SENATEPASSED BAN ON THE MANUFACTURE AND SALE OF SOCALLED ASSAULT WEAPONS THE BAN ISN'T IN THE HOUSE BILL AND IS OPPOSED BY SPEAKER THOMAS FOLEY OF WASHINGTON AND JUDICIARY COMMITTEE CHAIRMAN JACK BROOKS OF TEXAS THE HOUSE PLANS A SEPARATE VOTE ON THE ISSUE BEFORE THE CRIMEBILL NEGOTIATIONS ARE COMPLETED AND MR SCHUMER SAID ADVOCATES OF THE ASSAULTWEAPONS BAN REMAIN ABOUT 15 VOTES SHORT OF A MAJORITY THE SENATE MAY ALSO PRESS TO REDUCE THE 9 BILLION THE HOUSE INCLUDED FOR DRUG REHABILITATION AND SOCIAL PROGRAMS TO PREVENT CRIME AND SHIFT MORE MONEY TO PRISON CONSTRUCTION REPUBLICANS DERIDED THE CRIMEPREVENTION MEASURES INCLUDING SUCH THINGS AS FUNDING FOR MIDNIGHTBASKETBALL LEAGUES IN URBAN AREAS AS RECREATION AND WELFARE PROGRAMS 9404220005 940422 ARIZONA ENGINEER ENLARGES DEFINITION OF TUNNEL VISION' HIS DREAM IS TO BUILD PASSAGE WORLD'S LONGEST TO JOIN ASIA WITH NORTH AMERICA BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL FIRST THE BERLIN WALL CAME DOWN THEN RUSSIA AND THE US STOPPED TARGETING ONE ANOTHER WITH NUCLEAR MISSILES ALL THAT REMAINS IS FOR THE TWO COUNTRIES TO BE JOINED TOGETHER THAT'S WHERE GEORGE KOUMAL AND THE INTERHEMISPHERIC BERING STRAIT TUNNEL & RAILROAD GROUP COME IN WE'RE NOT JUST TALKING ABOUT A BIG BLACK HOLE IN THE GREAT WHITE NORTH MR KOUMAL'S 60MILE 50 BILLION PASSAGE JUST BENEATH THE ARCTIC CIRCLE LINKING NORTH AMERICA AND ASIA BY RAIL FOR THE FIRST TIME PROMISES NOTHING LESS THAN AN ECONOMIC RENAISSANCE FOR SIBERIA ALASKA AND THE PACIFIC NORTHWEST SAYS THE US MINING ENGINEER AND TUNNEL VISIONARY THIS PROJECT WOULD ESTABLISH A MAJOR TRANSPORT AND COMMERCE ARTERY IN THE NORTHERN HEMISPHERE MR KOUMAL ASSERTS TRIGGERING THE CREATION OF NEW PRIMARY AND REAL WEALTH IN MANY COUNTRIES ALONG ITS PATH IT WOULDN'T BE THAT HARD TO BUILD ARGUES THE CHAIRMAN OF THE INTERHEMISPHERIC GROUP COMPOSED OF MR KOUMAL HIS COMPANY ENGINEERING TECHNOLOGY INTERNATIONAL US INC AND SEVERAL OTHER DEVOTEES THE TUCSON ARIZ BUSINESSMAN SPENDS MUCH OF HIS SPARE TIME AND HIS COMPANY'S CASH ABOUT 70000 SO FAR TO PROMOTE HIS UNDERGROUND MOVEMENT THOUGH IT WOULD BE THE LONGEST TUNNEL IN THE WORLD ABOUT TWICE AS LONG AS THE MUCHDELAYED EUROTUNNEL UNDER THE ENGLISH CHANNEL A BERING STRAIT TUNNEL WOULDN'T HAVE TO BE VERY DEEP THE WATERS SEPARATING ALASKA AND THE RUSSIAN STATE OF CHUKOTKA NEVER REACH MORE THAN 74 METERS IN DEPTH MR KOUMAL SAYS AND THE GRANITE AND LIMESTONE SEA FLOOR IS IDEAL FOR BORING THE PROJECT HAS LINED UP SOME KEY BACKERS BEGINNING WITH THE WALES NATIVE CORP A SETTLEMENT OF SOME 200 PEOPLE NEAR THE PROPOSED ALASKAN END OF THE TUNNEL THE GOVERNOR OF ALASKA HAS VOICED HIS SUPPORT AND BORIS YELTSIN HIMSELF IS SAID TO HAVE REACTED POSITIVELY TO THE PROJECT MR KOUMAL CORRESPONDED WITH THE WHITE HOUSE RECEIVING A LETTER OF THANKS FROM CHIEF OF STAFF MACK MCLARTY FOR HIS SUGGESTION THAT A SIGN BE POSTED IN THE WHITE HOUSE SAYING IT'S RUSSIA STUPID THE IDEA WAS TO REMIND CLINTON STAFFERS OF THE IMPORTANCE OF THE US RIVAL UNFORTUNATELY NOT ALL OF MR KOUMAL'S IDEAS HAVE BEEN SO WELLRECEIVED IN WASHINGTON THE STATE DEPARTMENT IN A 1988 LETTER JUDGED HIS PLANS FOR A TUNNEL PREMATURE WHILE THE DEPARTMENT OF TRANSPORTATION QUESTIONED WHETHER SUCH A LINK WOULD BE COSTEFFECTIVE INDEED THE INTERHEMISPHERIC GROUP HAS HIT SOME ROUGH WATERS FAR FROM FIRMING UP FINANCING FOR ITS MULTIBILLIONDOLLAR DREAM THE GROUP IS SCRAMBLING FOR THE SEVERAL MILLION DOLLARS JUDGED NECESSARY FOR A FEASIBILITY STUDY THEN THERE ARE DEEPFREEZE TEMPERATURES AND MASSIVE DISTANCES IT'S 2100 MILES FROM THE BERING STRAIT TO THE FIRST BIG RUSSIAN CITY YAKUTSK THE EMPTY EASTERN SIBERIAN LANDSCAPE IS FAR FROM HOSPITABLE IT HAS BEEN USED AS A TOXIC WASTE DUMP BY PREVIOUS SOVIET REGIMES AND WHO EXACTLY WOULD USE SUCH A TUNNEL GRAIN COULD TRAVEL FROM KANSAS TO CALCUTTA BY RAIL WITH NO LOADING AND UNLOADING IN BETWEEN MR KOUMAL NOTES THAT'S A JOURNEY OF CLOSE TO 10000 MILES MR KOUMAL ISN'T DETERRED HOWEVER HALFWAY ACROSS THE BERING STRAIT STRADDLING THE INTERNATIONAL DATELINE ARE TWO ISLANDS INTO WHICH VENTILATOR SHAFTS COULD BE DRIVEN HE POINTS OUT THE US ISLANDERS BASICALLY AN ESKIMO VILLAGE HAVEN'T BEEN POLLED YET SAYS JIM STIMPFLE HEAD OF THE CHAMBER OF COMMERCE IN NOME ALASKA BUT GIVEN THE POTENTIAL ECONOMIC BENEFITS OF AN INTERCONTINENTAL TUNNEL TO THEIR HUNTING AND FISHING COMMUNITY MR STIMPFLE SAYS THERE'S LIKELY TO BE SUPPORT THERE LITTLE OPPOSITION IS EXPECTED FROM THE LARGER RUSSIAN ISLAND IT IS UNINHABITED THE ATTITUDE IN NOME THE LARGEST ALASKAN TOWN CLOSE TO THE BERING STRAIT WAS ONE OF DISBELIEF WHEN MR KOUMAL STARTED LOBBYING THE TUNNEL CONCEPT LOCALLY BACK IN 1987 SAYS MR STIMPFLE THE NOME COMMERCE CHIEF WAS PREOCCUPIED WITH JUST TRYING TO OPEN THE BORDER WITH RUSSIA WHEN MR KOUMAL FIRST CONTACTED HIM A COUPLE OF YEARS LATER THOUGH AS MR STIMPFLE WAS WATCHING TELEVISION FOOTAGE OF THE BERLIN WALL COMING DOWN HE SAID TO HIMSELF THIS TUNNEL IDEA COULD WORK CHUKOTKA GOV ALEXANDER NAZAROV THINKS SO TOO CORRESPONDING WITH HIS ALASKAN COUNTERPART GOV WALTER J HICKEL THE RUSSIAN WROTE THE BERING STRAIT TUNNEL PROJECT APPEALS TO ME I MUST SAY IT MIGHT SPEED UP HIS MAIL FOR ONE THING GOV NAZAROV'S LETTER WAS DATED IN OCTOBER BUT RECEIVED IN LATE DECEMBER TO BE SURE SOME LOCAL ALAKSKANS HAVE RESERVATIONS ABOUT THE PENNILESS RUSSIANS ALREADY IN ALASKA NOW THAT THE BORDER IS OPEN BUT ECONOMIC ADVANTAGES OF A TUNNEL WOULD OUTWEIGH ANY INFLUX OF POOR RUSSIANS ADVOCATES SAY THERE MIGHT WELL BE BENEFITS FOR THE ADVOCATES IF A TUNNEL IS BUILT MR KOUMAL'S ENGINEERING COMPANY OF COURSE WOULD HOPE TO GET SOME BUSINESS ETI IS A UNIT OF TRANSAFRICA ETI ZAIRE A PRIVATELY OWNED BRUSSELS MINING ENGINEERING CONCERN AS IF TO STRESS THE NEED FOR A TUNNEL A SIXPERSON TEAM LAST MONTH ATTEMPTED TO DRIVE ACROSS THE FROZEN BERING STRAIT THE EASTBOUND TRAVELERS FOUR BRITONS A CANADIAN AND A RUSSIAN HAD TO BE PLUCKED BY HELICOPTER FROM THEIR SINKING VEHICLE ROUGH WEATHER UPSET THE TEAM'S EFFORT AND THEY WERE AIRLIFTED TO ALASKA TRAVELERS HAVE LONG BEEN FASCINATED WITH THE IDEA OF CROSSING THE BERING STRAIT WITHOUT GETTING THEIR FEET WET AROUND THE TURN OF THE CENTURY A FRENCH ENGINEER LOICA DE LOBELA SET UP AN AMERICANFRENCHRUSSIAN SYNDICATE TO BUILD SUCH A TUNNEL THE SYNDICATE CLAIMED TO HAVE MILLIONS OF DOLLARS OF CAPITAL IN THE BANK OF NEW JERSEY IN A CHRISTMAS DAY EDITORIAL IN 1903 THE NEW YORK TIMES SAID CONSTRUCTION OF A TUNNEL AND RAILROAD UNDER THE BERING STRAIT IS A PROJECT THAT WILL BE OF ENORMOUS BENEFIT IN THE NEAR FUTURE NONETHELESS MR KOUMAL REMAINS THE OPTIMIST THE SECRET OF LIFE HE SAYS QUOTING WINSTON CHURCHILL IS TO ENDURE 9404220004 940422 TECHNOLOGY TELEPORT ASKS TO ENTER LOCAL PHONE MARKETS IN CHICAGO SEATTLE NEW YORK ALTERNATIVE TELEPHONESERVICE CARRIER TELEPORT COMMUNICATIONS GROUP THREW A NEW WRINKLE INTO THE INTENSIFYING BATTLE OVER LOCAL PHONE SERVICE BY PROPOSING TO EXPAND COMPETITION IN THE CHICAGO AND SEATTLE MARKETS THE COMPANY CURRENTLY PROVIDES INHOUSE PHONE LINES TO BUSINESSES ON A SOPHISTICATED FIBEROPTIC NETWORK TELEPORT SAID IT HAS SOUGHT PERMISSION FROM STATE REGULATORS TO GO HEADTOHEAD WITH AMERITECH CORP AND U S WEST INC THE BELL COMPANIES THAT DOMINATE THE CHICAGO AND SEATTLE MARKETS TELEPORT OPERATES IN 18 METROPOLITAN AREAS TYPICALLY LINKING BUSINESSCUSTOMER LOCATIONS VIA A HIGHVOLUME FIBEROPTIC COMMUNICATIONS NETWORK BECAUSE BUSINESS CUSTOMERS ALSO NEED TO MAKE LOCAL PHONE CALLS OUTSIDE THE NETWORK TELEPORT RENTS PHONE LINES FROM LOCAL BELL COMPANIES WE LOSE MONEY ON EVERY CALL WE COMPLETE THROUGH THE LOCAL CARRIERS SAID MANNING LEE AN ATTORNEY FOR TELEPORT ITS NEW PROPOSALS WOULD PERMIT TELEPORT TO PROVIDE SUCH LOCAL SERVICE ALMOST ENTIRELY OVER ITS OWN NETWORK AND RECOUP A CHUNK OF ITS LOSSES HOWEVER TELEPORT STILL WOULD NEED TO USE THE BELL COMPANIES TO COMPLETE CALLS TELEPORT FILED A PROPOSAL WITH ILLINOIS AND WASHINGTON REGULATORS DECLARING THAT IT WANTS TO BECOME THE OTHER LOCAL TELEPHONE COMPANY TELEPORT EXECUTIVES SAID THEY HOPE TO RECEIVE PERMISSION TO PROVIDE THE SERVICES BY YEAR END COMPANIES ARE INCREASINGLY LOOKING AT CHICAGO AS A HOTBED OF COMPETITION AND REGULATORY REFORM RECENTLY AT&T CORP FILED A BLUEPRINT WITH REGULATORS DESCRIBING HOW LOCAL PHONESERVICE COMPETITION SHOULD BE INTRODUCED IN THE AREA INCREASED COMPETITION WOULD EXPAND AT&T'S CHOICE OF CARRIERS TO HAUL ITS LONGDISTANCE TRAFFIC TO LOCAL PHONE CUSTOMERS 9404220003 940422 LEISURE & ARTS DANCE THE ROYAL'S CLASSICAL RETURN BY DALE HARRIS WASHINGTON DC MUCH HAS HAPPENED TO THE ROYAL BALLET SINCE 1949 THE YEAR THE BRITISH TROUPE MADE ITS SENSATIONAL US DEBUT AT THE OLD MET WITH MARIUS PETIPA'S SLEEPING BEAUTY ABOVE ALL ITS FOUNDING CHOREOGRAPHER SIR FREDERICK ASHTON WAS SUPERSEDED BY THE YOUNGER SIR KENNETH MACMILLAN WITH THE TREMENDOUS SUCCESS IN 1965 OF THE MACMILLAN ROMEO AND JULIET STILL THE BIGGEST HIT IN THE COMPANY'S HISTORY THE ROYAL BALLET BEGAN TO SACRIFICE CLASSICAL PURITY AND LYRICISM THE QUALITIES THAT HAD DISTINGUISHED ITS DANCING UNTIL THEN FOR THE COARSER MORE OVERTLY DRAMATIC MANNER FAVORED BY SIR KENNETH HENCE THE SIGNIFICANCE OF THE ROYAL BALLET'S NEW SLEEPING BEAUTY RECENTLY GIVEN ITS WORLD PREMIERE AT THE KENNEDY CENTER THE RETURN OF THIS NOBLE AND HARMONIOUS WORK TO THE REPERTOIRE AFTER AN ABSENCE OF SEVERAL SEASONS SEEMS TO INDICATE A DESIRE ON THE PART OF THE ROYAL BALLET'S DIRECTOR ANTHONY DOWELL WHO STAGED THE PRODUCTION HIMSELF TO REFINE THE COMPANY'S STYLE WHICH HAD GROWN DEPRESSINGLY SLACK DURING THE PAST DECADE TO DANCE A CHOREOGRAPHICALLY AUTHENTIC SLEEPING BEAUTY IS INEVITABLY TO RECEIVE A LESSON IN CLASSICAL TECHNIQUE AND THE NOBILITY OF MANNER WHICH IS ITS END IN THE PAST PETIPA'S MASTERPIECE SERVED AS IN EFFECT THE TRAINING GROUND OF THE ROYAL BALLET A COMPANY THAT ONCE PRODUCED SUCH WORLDCLASS DANCERS AS MARGOT FONTEYN ANTOINETTE SIBLEY AND ANTHONY DOWELL NO DOUBT IT IS FOR REASONS OF THIS KIND THAT MR DOWELL HAS TAKEN PAINS TO RESTORE THE BALLET TO SOMETHING LIKE THE CONDITION IN WHICH IT WAS FIRST SEEN HERE 45 YEARS AGO THOUGH THE CHOREOGRAPHIC SCRIPT IS NOT EXACTLY THE SAME THE VERSION UNVEILED IN WASHINGTON IS VERY CLOSE TO THE ONE THAT CAME TO THIS COUNTRY IN 1949 THAT PRODUCTION ORIGINALLY PRESENTED IN LONDON THREE YEARS EARLIER WAS MOUNTED BY NICHOLAS SERGEYEV FORMERLY REGISSEUR OF THE IMPERIAL BALLET AT THE MARYINSKY THEATER IN ST PETERSBURG WHERE THE SLEEPING BEAUTY WAS FIRST PRESENTED IN 1890 AND THUS A GUARANTOR OF ITS FUNDAMENTAL LEGITIMACY BUT THE CURRENT STAGING IS MORE THAN MERELY AUTHENTIC IT IS ALSO VALID NOT SIMPLY A PIOUS RECONSTRUCTION OF A HISTORIC ARTISTIC ACHIEVEMENT BUT A REANIMATION OF THAT ACHIEVEMENT IN TERMS OF THE PRESENT BECAUSE ASHTON PLAYED SO DECISIVE A ROLE IN SHAPING THE STYLE OF THE ROYAL BALLET MARGOT FONTEYN WAS AT ONCE HIS MUSE AND HIS CREATION ITS OLD SLEEPING BEAUTY WAS AS QUINTESSENTIALLY BRITISH AS BALANCHINE'S 1947 HOMAGE TO PETIPA THEME AND VARIATIONS WAS QUINTESSENTIALLY AMERICAN IN BOTH CASES THE RUSSIAN STYLE HAD BEEN RECONCEIVED THROUGH THE SENSIBILITY OF A CONTEMPORARY CHOREOGRAPHER AND AS A RESULT OF A NATIONAL SCHOOL ASHTON'S GREAT CONTRIBUTION TO THE SLEEPING BEAUTY WAS TO INFUSE THE VIRTUOSITY OF RUSSIAN CLASSICAL BALLET IN WHICH HE HAD BEEN TRAINED WITH A HIGHLY POETIC LYRICISM A QUALITY MANIFEST NOT ONLY IN THE SUPERB CHOREOGRAPHIC ADDITIONS HE MADE TO THE PRODUCTION THE GARLAND DANCE IN ACT ONE THE SOLO FOR THE HEROINE AURORA IN ACT TWO THE PAS DE TROIS FLORESTAN AND HIS SISTERS IN ACT THREE BUT ALSO IN THE TEXTURE OF THE DANCING WHICH WAS AT ONCE PRECISE GRACEFUL AND INTENSELY MUSICAL MARGOT FONTEYN DID NOT SO MUCH PERFORM TO THE ACCOMPANIMENT OF TCHAIKOVSKY'S MUSIC SHE WAS ITS VERY EMBODIMENT BUT ASHTON IS DEAD AND MR DOWELL IN HIS TIME ONE OF THE CHOREOGRAPHER'S FINEST EXPONENTS HAS THE LAMENTABLE CONSEQUENCES OF THE MACMILLAN YEARS TO MAKE UP FOR THESE INCLUDE THE EROSION OF THE DANCERS' TECHNICAL SKILL AND NO LESS IMPORTANT OF THEIR ABILITY TO PHRASE WITH THE SUBTLETY THAT TRANSFORMS CLASSROOM STEPS INTO A DEMONSTRATION OF MUSICAL EXPRESSIVITY DARCEY BUSSELL WHO WAS THE AURORA ON OPENING NIGHT IN WASHINGTON AND AGAIN TWO EVENINGS LATER WHEN I SAW HER IS A VERY GOOD DANCER STRONG AND ENERGETIC GENEROUS IN STYLE REFRESHINGLY CANDID IN MANNER IN THE FEVERISH ALLEGRO PASSAGE THAT FOLLOWS THE PRICKING OF HER FINGER IN ACT ONE MS BUSSELL SWIFT INTENSE AND GRAND LOOKED LIKE A MAJOR DANCER NOWHERE ELSE HOWEVER IN ASHTON'S RAVISHING ACTTWO SOLO SHE WAS MECHANICAL IN PETIPA'S LASTACT PAS DE DEUX BLAND THE PROBLEM WITH HER ROSE ADAGE IN THE FIRST ACT ONE OF PETIPA'S GREAT INVENTIONS WAS NOT SIMPLY THAT HER BALANCES LACKED ASSURANCE BUT THAT SHE SHOWED NO AWARENESS THAT THE SCENE IS IN EFFECT A DRAMA OF MATURATION WHEN AURORA BEGINS THE ROSE ADAGE SHE IS A GIRL BY THE TIME SHE TAKES HER FINAL UNSUPPORTED ARABESQUE SHE IS A WOMAN MS BUSSELL EVINCED NONE OF THE SUBTLE DYNAMISM THE GRASP OF NUANCE THAT WOULD HAVE GIVEN HER AURORA DEPTH AND MEANING MS BUSSELL WHATEVER HER DEFICIENCIES AS A CLASSICAL BALLERINA IS CLEARLY A POTENTIAL STAR SO IS HER PARTNER THE ROMANTICLOOKING ZOLTAN SOLYMOSI WHO EXCELLED IN THE AIR TURNS OF THE FINAL ACT THE REST OF THE DANCERS THOUGH OFTEN CHARMING WERE LESS INTERESTING THE LILAC FAIRY OF FIONA CHADWICK WAS GRACIOUS BUT INSECURE THE BLUE BIRD OF TETSUYA KUMAKAWA INHIBITED AND INSUFFICIENTLY VIRTUOSIC THE CORPS DE BALLET VAGUE BUT FOR THE FIRST TIME IN MANY YEARS TWO OF THE DIVERTISSEMENTS IN THE LAST ACT RED RIDING HOOD AND THE WOLF AND PUSS IN BOOTS AND THE WHITE CAT SHOWED ALL THEIR OLD CHARM THE SAME CANNOT BE SAID OF THE CONTRIBUTION MADE BY MARIA BJORNSON DESIGNER OF ANDREW LLOYD WEBBER'S PHANTOM OF THE OPERA THE SCALE OF WHOSE DIZZYINGLY PERSPECTIVAL SETS OVERWHELMS THE DANCERS THE COSTUMES SHE HAS DESIGNED FOR THE CEREMONIAL AND MIME ROLES ARE MOREOVER GROTESQUELY CAMP DECORATIVELY THIS MAY OR MAY NOT BE THE UGLIEST BEAUTY OF OUR TIME BUT IT IS CERTAINLY THE MOST VULGAR THE SLEEPING BEAUTY WILL TRAVEL TO FLORIDA AND TEXAS LATER IN APRIL AND TO NEW YORK IN JULY 9404220002 940422 MIXED SIGNALS FRUSTRATION NOT ANGER GUIDES RACE RELATIONS ON A COLLEGE CAMPUS BLACKS TURN INWARD WHITES GROPE TO UNDERSTAND A NEW RACIAL ETIQUETTE MR NEWTON'S STRANGE WORLD BY GABRIELLA STERN AND DOROTHY J GAITER STAFF REPORTERS OF THE WALL STREET JOURNAL EVANSTON ILL CHARLES MURTAUGH NOSTALGICALLY RECALLS ROMPING ON CAMPUS AS A FRESHMAN WITH A RAINBOW COLLECTION OF FRIENDS HE HAS ESPECIALLY FOND MEMORIES OF MARATHON COMPUTER GAMES WITH A BLACK STUDENT AARON MILLER MR MILLER'S MEMORIES AREN'T AS POIGNANT THOUGH HE SPEAKS AFFECTIONATELY OF MR MURTAUGH WHO IS WHITE HE REMEMBERS FEELING ESTRANGED IN THE OVERWHELMINGLY WHITE DORM THEY SHARED PARTIES THAT EMPHASIZED DRINKING OVER DANCING STUDENTS BOASTING ABOUT SPRINGBREAK TANS STUDENTS WITH LITTLE INTEREST IN DISCUSSING RACIAL AND SOCIAL ISSUES FOUR YEARS AFTER THEY ENTERED NORTHWESTERN UNIVERSITY HERE MESSRS MURTAUGH AND MILLER WILL SOON LEAVE THIS CAMPUS WITH FEW FRIENDS WHOSE SKIN ISN'T THE COLOR OF THEIR OWN AT CHANCE MEETINGS ON CAMPUS THE YOUNG MEN GREET EACH OTHER WITH SMILES BANTERING AND NICKNAMES BUT THEY ARE MERE ACQUAINTANCES WHAT HAPPENED MR MURTAUGH IS NOT SURE BUT LEAVING SCHOOL WITH NO TRULY CLOSE BLACK FRIENDS IS MY BIGGEST REGRET SAYS MR MURTAUGH 21 WHO IS HEADED FOR A HARVARD UNIVERSITY DOCTORAL PROGRAM IN BIOLOGY FOR THE 21YEAROLD MR MILLER A CHEMICAL ENGINEERING MAJOR HEADED FOR A JOB AT GENERAL MILLS THE ANSWER IS SIMPLE AFTER A LIFETIME IN A MOSTLY WHITE WORLD HE BECAME FED UP WITH THE EXPECTATIONS OF WHITE NORTHWESTERN UNDERGRADUATES THAT HE ASSIMILATE INSTEAD HE CHOSE TO INVOLVE HIMSELF WITH OTHER BLACK STUDENTS I'VE GROWN MORE AND FEEL I'VE LEARNED MORE ABOUT MYSELF BECAUSE I'VE BEEN ABLE TO TALK TO PEOPLE WHO'VE HAD THE SAME EXPERIENCES SAYS MR MILLER WHO IS FROM ATLANTA THIS IS A STORY NOT ABOUT RACIAL ANIMOSITY BUT RACIAL FRUSTRATION NOT ABOUT THE RACIAL CHASM BUT ABOUT HOW MODERATE WELLINTENTIONED STUDENTS BLACK AND WHITE FIND BRIDGES ACROSS THE RACIAL DIVIDE DIFFICULT TO BUILD AND ONCE BUILT OFTEN TRICKY TO NAVIGATE INDEED 40 YEARS AFTER THE US SUPREME COURT'S 1954 LANDMARK SCHOOLDESEGREGATION DECISION FEW HERE ON THIS LEAFY PRIVATE CAMPUS OF 7270 WOULD QUARREL WITH THE FUNDAMENTAL WISDOM AND BENEFIT OF BROWN VS BOARD OF EDUCATION AND WHO COULD ARGUE WITH REAL SIGNS OF PROGRESS THE 469 BLACKS AT NORTHWESTERN REPRESENT JUST 65 OF THE UNDERGRADUATE POPULATION YET TWO OF THE LAST THREE ELECTED STUDENTBODY PRESIDENTS HAVE BEEN BLACKS THAT SAID BLACK STUDENTS HERE OFTEN STILL FEEL ILL AT EASE AS IF THEIR PRESENCE IS AN UNWELCOME WEDGE PUSHING INTO THIS WHITE COMMUNITY SAYS MR MILLER THE COMMON BLACK LAMENTS WHITES INSISTING ON CONDUCTING BLACKWHITE RELATIONSHIPS ON WHITE TERMS A DEPRESSING WHITE IGNORANCE OF BLACK CULTURE A FEAR THAT WHITE RELATIONSHIPS WILL ULTIMATELY LEAD TO DISAPPOINTMENT PERHAPS EVAPORATE BEYOND THE CAMPUS WALLS CONSTERNATION THAT THE BLACK NEED FOR FELLOWSHIP EXPRESSED FORMALLY IN ALLBLACK FRATERNITIES AND INFORMALLY IN BLACK CONGREGATIONS AT LUNCH TABLES IS SEEN BY WHITES AS REVERSE RACISM YET NORTHWESTERN'S WHITE STUDENTS MANY OF THEM FROM AFFLUENT FAMILIES THE VAST MAJORITY OF THEM PRODUCTS OF LONGINTEGRATED SCHOOLS FIND MUCH THAT FRUSTRATES THEM AS WELL THEY HAVE COME TO COLLEGE IN THE MIDST OF A NATIONWIDE DIVERSITY/INCLUSION MOVEMENT THAT SOUNDS TO THEM MORE LIKE AN INVITATION TO BUTT OUT THAN TO JOIN IN THOSE WHO HAVE BLACK FRIENDS OFTEN WATCH IN DISMAY AS THOSE BLACKS ARE OSTRACIZED BY OTHER BLACKS FOR BEING TOO WHITE AND MANY WHITES ARE BAFFLED BY THE NEW RACIAL RULES HOW IS IT THAT THE SELFSEGREGATION PRACTICED BY MANY CAMPUS BLACKS IS CONSIDERED A GOOD THING YET SUCH DECLARED WILLFUL SEGREGATION BY WHITES WOULD BE CONSIDERED RACIST MONA BOULOS A 20YEAROLD ARABAMERICAN STUDENT FROM BLOOMFIELD HILLS MICH PUTS IT THIS WAY MINORITY GROUPS WANT TO TURN TO THEMSELVES BUT THERE'S A FINE LINE BETWEEN THAT AND EXCLUDING EVERYBODY ELSE THIS DIVERGENCE OF VIEWS BECAME EVIDENT DURING RECENT INTERVIEWS WITH DOZENS OF STUDENTS BLACK AND WHITE ON NORTHWESTERN'S CAMPUS THAT MANY YOUNG BLACKS FEEL ALIENATED AT MOSTLY WHITE COLLEGES ISN'T NEW WHAT IS NEW IS THAT YOUNG BLACKS ARE LESS FORGIVING OF WHITE PEERS WHO THEY SAY HAVE LITTLE UNDERSTANDING OF AMERICA'S RACIAL HISTORY AND DON'T SEEM TO HAVE LEARNED MUCH FROM GROWING UP IN AN INTEGRATED WORLD MOST BLACK STUDENTS ARE REFUSING TO BE THE TOKEN BLACK IN THE LIVES OF WHITE CLASSMATES CULTURAL ODDITIES ANSWERING NAIVE QUESTIONS ABOUT THEIR HAIR STYLES AND FOOD AND MUSIC PREFERENCES AND UNLIKE THEIR PARENTS WHO FELT COMPELLED TO EXPLAIN THEIR CULTURE TO WHITES THEY FIGURE WHITES OUGHT TO KNOW BY NOW IF I HAVE TO EXPLAIN MYSELF ALL THE TIME THE IMPLICATION IS THAT I'M NOT NORMAL AND I'M NORMAL IN EVERY WAY AND THEY FEEL LIKE YOU SPEAK FOR EVERY BLACK PERSON ON THE CAMPUS WE DO HAVE DIVERSE IDEAS SAYS DARLENE MORGAN A BLACK AFRICANAMERICAN STUDIES AND BIOLOGY MAJOR FROM LOUISIANA WHEN A WHITE WOMAN IN HER DORM ASKED HER WHY DOES YOUR HAIR DO THIS THE 20YEAROLD MS MORGAN REPLIED INCREDULOUSLY DIDN'T YOU ASK THAT IN HIGH SCHOOL TRACY RAMBEAU A 22YEAROLD BLACK SENIOR FROM VIRGINIA BEACH VA AGREES THAT SHE DOESN'T WANT TO BE AN EDUCATIONAL EXPERIENCE FOR WHITES WHEN YOU REALLY WANT SOME RIBS AND CHICKEN IF YOU INVITE A WHITE PERSON THEY'LL SAY OH THAT WOULD BE INTERESTING' YOU JUST WANT TO GO DO IT MOST BLACK STUDENTS HERE SAY THEY ARE WILLING TO MEET WHITES HALFWAY BUT IF THAT IS NOT POSSIBLE IT'S NOT A BIG DEAL THEY HAVE MORE SERIOUS BUSINESS TO ATTEND TO WITH A PLAGUE OF GUNS AND DRUGS KILLING SO MANY BLACK YOUTHS NATIONWIDE THE BLACK STUDENTS HERE CONSCIOUS OF THEIR PRIVILEGED STATUS ARE TURNING INWARD DRAWING STRENGTH AND JOY FROM ASSOCIATING WITH OTHER AFRICANAMERICAN STUDENTS MANY SAY THEY FEEL DUTYBOUND TO CONTINUE BLACK AMERICA'S MARCH TOWARD SOCIAL AND ECONOMIC EQUALITY A MARCH FROM WHICH IN THEIR VIEW MANY WHITE AMERICANS HAVE WITHDRAWN TOWARD THAT END AFRICANAMERICAN STUDENTS HAVE CAPTURED TOP POSITIONS AT THE STUDENT NEWSPAPER AND IN STUDENT GOVERNMENT HELPING TO CONTROL AND DIRECT FUNDS TO A WIDE ARRAY OF GROUPS AND SEEING TO IT THAT BLACK ORGANIZATIONS KNOW HOW TO QUALIFY FOR SOME OF THAT MONEY JOHN BROWNLEE THE BLACK DEPARTING STUDENTBODY PRESIDENT WAS MENTORED BY THE PREVIOUS STUDENTBODY PRESIDENT WHO ALSO WAS BLACK AFRICANAMERICAN STUDENTS' OFFCAMPUS ACTIVITIES INCLUDE TUTORING AFRICANAMERICAN CHILDREN VOLUNTEERING AT HOMELESS SHELTERS AND RAISING MONEY FOR ANTIPOVERTY PROGRAMS WHITE STUDENTS ARE LESS ACTIVE POLITICALLY WHILE BLACK STUDENTS ARE MORE INVOLVED SAYS DOUG TROUTMAN THE WHITE DIRECTOR OF STUDENT AFFAIRS AT NORTHWESTERN BLACKS SEE THE GOOD OLD BOY NETWORK IN THE WHITE COMMUNITY AND ARE DOING IT THEMSELVES BARBARA DAWKINS 22 AND AN AFRICANAMERICAN SENIOR FROM MATTESON ILL IS THE DEPARTING STUDENTGOVERNMENT VICE PRESIDENT OF FINANCE INSTEAD OF COMPLAINING I WANTED TO GET INVOLVED SHE SAYS I WANTED TO GUARANTEE THAT RESOURCES WOULD BE AVAILABLE TO OUR COMMUNITY AS WELL AS THE GENERAL COMMUNITY WE BLACKS SHE CONTINUES NEED TO HAVE PEOPLE EVERYWHERE IF YOU'RE ONLY ACTIVE IN FOR MEMBERS ONLY THE PREMIER CAMPUS BLACK ORGANIZATION YOU'RE NOT EXPOSED TO THE POWER STRUCTURE OF THE SCHOOL FOR THEIR PART MANY WHITES GENUINELY WANT TO REACH OUT TO BLACK CLASSMATES BUT DON'T KNOW HOW OR ARE AFRAID OF BEING REBUFFED IN A RECENT SURVEY CONDUCTED BY THE ADMINISTRATION WHITE STUDENTS SAY THEY WISH THEIR RELATIONS WITH BLACKS WERE CLOSER AND MORE HARMONIOUS REBECCA DAVIS A WHITE SENIOR AND RESIDENCEHALL COORDINATOR FROM BIRMINGHAM ALA BELIEVES WHITE STUDENTS SHOULD STOP WHINING AND TRY TO STEP INTO BLACKS' SHOES WHITE STUDENTS EXPECT PEOPLE TO COME TO THEM SAYS THE 22YEAROLD MS DAVIS WHO HAS TUTORED ASIAN CHILDREN BUT IF YOU WANT TO KNOW PEOPLE OF DIFFERENT BACKGROUNDS YOU HAVE TO WORK AT IT THIS IS A PIVOTAL POINT IN SO MANY PEOPLE'S LIVES THAT TO LEAVE WITHOUT CHANGING OR BEING CHANGED BY THE DIVERSITY AROUND THEM IS A SHAME YET OTHER WHITES SAY THEY ARE PUT OFF BY BLACKS BONDING WITH EACH OTHER AND PARTICIPATING IN AFRICANAMERICAN ORGANIZATIONS INTERPRETING THESE ACTS AS DELIBERATE SEPARATISM AND EVEN HOSTILITY THEY COMPLAIN ABOUT REVERSE RACISM POINTING TO CERTAIN CAFETERIA TABLES WHERE BLACK STUDENTS OFTEN SIT FOR SOME OBSERVERS THESE KINDS OF CONFLICTS SEEM DISTRESSINGLY INEVITABLE INTEGRATION FOR ALL THE OPPORTUNITIES IT HAS CREATED FOR BLACKS HAS ALSO GENERATED A LOT OF PAIN BETWEEN THE RACES SAYS CHARLES WILLIE A HARVARD EDUCATION AND URBANSTUDIES PROFESSOR MR WILLIE WHO IS BLACK SAYS THERE HAS BEEN PROGRESS YOUNG WHITES BY AND LARGE DON'T WISH TO DOMINATE OR OPPRESS BLACKS AND YOUNG AFRICANAMERICANS HAVE MORE CONFIDENCE IN THEIR ABILITY TO SURMOUNT RACIAL BARRIERS HE SAYS BUT PROBLEMS REMAIN WHITES HE THINKS RETAIN A NARCISSISTIC SENSE OF ENTITLEMENT AND FEEL MINORITIES ARE ENCROACHING ON THEIR PRIVILEGED POSITION MEANWHILE BLACKS HAVE SELFPRESERVATION ANXIETY AND ARE WARY OF TRUSTING WHITES FEARING BETRAYAL KENNETH CLARK THE NOTED BLACK PSYCHOLOGIST WHOSE RESEARCH ON SEGREGATED BLACK STUDENTS' SELFESTEEM CONTRIBUTED TO THE SUPREME COURT'S DESEGREGATION DECISION ALSO IS DISTRESSED I UNDERESTIMATED HOW ENTRENCHED RACISM IS IN THIS SOCIETY PARTICULARLY IN THE NORTH DR CLARK 79 SAYS NOW STILL HE HEWS TO THE THEORY THAT INTEGRATION CAN LEAD TO RACIAL EQUALITY WALK AROUND THE SPRAWLING NORTHWESTERN CAMPUS AND YOU WILL SEE BLACKS AND WHITES PLAYING CHATTING AND STUDYING TOGETHER BUT AT SOME POINT RACIAL SEPARATION COMES FRONT AND CENTER FOR MANY WHITE STUDENTS A WALK PAST THE BLACK HOUSE A CONVERTED PRIVATE HOME HOUSING THE UNIVERSITY'S AFRICANAMERICAN STUDENT AFFAIRS OFFICE AND A PLACE WHERE BLACK STUDENTS CONGREGATE TO STUDY AND RELAX HEIGHTENS THEIR SENSE OF SEPARATENESS LIKEWISE WHEN BLACKS GO INTO A CLASSROOM WITH HUNDREDS OF WHITE STUDENTS OR COUNT THE HANDFUL OF BLACK FACULTY THEY FEEL MARGINALIZED WITH A FULLTIME UNDERGRADUATE AND GRADUATE FACULTY OF 1328 NORTHWESTERN HAS JUST 29 TENURED OR TENURETRACK PROFESSORS WHO ARE BLACK UNIVERSITY OFFICIALS POINT OUT THAT THE NUMBER HAS DOUBLED SINCE 1987 HOWEVER YVONNE YANCY 21 AND A SENIOR ECONOMICS AND MATH MAJOR FROM ATLANTA SAYS THAT HER FATHER ROBERT WARNED HER THAT DESPITE DECADES OF INTEGRATION LIFE WOULD BE TOUGH AT NORTHWESTERN AN ALUMNUS HIMSELF WHO WAS PART OF THE 1968 BLACK STUDENT TAKEOVER OF THE FINANCE BUILDING HE TRIED TO CONVINCE HER TO GO ELSEWHERE IN FACT SHE RECALLS THAT HE COULDN'T BRING HIMSELF TO CROSS THE EVANSTON CITY LIMITS WHEN HE FIRST DROVE YVONNE TO CAMPUS HE JUST STOPPED THE CAR COULDN'T GO ON HE HAD NAUSEA AND HEADACHES SHE SAYS I HAD NO IDEA HOW TRAUMATIC IT HAD BEEN FOR HIM BUT HE TOLD ME THAT IF I COULD MAKE IT AT NORTHWESTERN I COULD MAKE IT ANYWHERE RECENTLY THERE HAVE BEEN SOME UGLY RACIAL INCIDENTS RACIST AND ANTISEMITIC GRAFFITI APPEARED ON DORMROOM DOORS AND IN AN ART GALLERY GUEST BOOK THE DAILY NORTHWESTERN STUDENT NEWSPAPER PRINTED A SERIES OF LETTERS BY BLACK WHITE AND JEWISH STUDENTS WITH SOME LETTERS BORDERING ON OUTRIGHT BIGOTRY YOUNG WHITES DESCRIBE RACE RELATIONS ON CAMPUS AS NOT GOOD OR PRETTY SEGREGATED BUT FEW HAVE GIVEN IT MUCH THOUGHT FRESHMAN BETSY CRAIG SITS AT A FORMICA TABLE IN A CAMPUS SNACK SHOP AND TALKS ABOUT RACE ON CAMPUS THE WHITE 18YEAROLD HAS HAD MINIMAL INTERACTION WITH BLACK STUDENTS HER FIRST YEAR AT NORTHWESTERN THE INTERACTION SHE HAS HAD SHE VIEWS LARGELY AS UNSETTLING ONCE WE WERE WATCHING TV IN A DORM LOUNGE SHE SAYS A BUNCH OF BLACK STUDENTS CAME IN AND WE WATCHED TV WITH THEM THEY STARTED PLAYING CARDS THE BLACKS IN MS CRAIG'S VIEW SEEMED TO BE COMMANDEERING THE ROOM PAYING LITTLE ATTENTION TO THE WHITES SO WE JUST SAID OK WE'LL LEAVE SHE SAYS ANOTHER TIME WE WERE WATCHING LA LAW WITH A BLACK GUY THEN WHEN WE SAW HIM IN THE LUNCHROOM WE SAID WHAT'S UP' HE BARELY ACKNOWLEDGED US LIKE MS CRAIG MANY WHITE NORTHWESTERN STUDENTS SEEM PREOCCUPIED WITH JUGGLING FINANCES GETTING GOOD GRADES AND LANDING A GOOD JOB THEY ARE THE POSTGUILT GENERATION SAYS KARLA SPURLOCKEVANS THE BLACK DIRECTOR OF AFRICANAMERICAN STUDENT AFFAIRS TO THEM CIVIL RIGHTS COULD BE THE CIVIL WAR ANCIENT HISTORY INDEED SOME WHITE UNDERGRADUATES GROUSE ABOUT AFFIRMATIVE ACTION SAYING WHITES ARE LOSING OUT TO LESSQUALIFIED BLACKS IN THE JOB MARKET AND FOR COVETED GRADUATESCHOOL SLOTS I'VE NEVER HAD A LOT SAYS JEREMY ARNONE A WHITE SENIOR FROM MONTANA ON FINANCIAL AID I LOOK AT MYSELF AND MY SISTER AND SAY WE DID IT WITH THE BENEFIT OF HARD WORK COMMENTS LIKE THAT ANGER BLACK STUDENTS WHEN THEY ARE READY TO ABDICATE ALL THE TRAPPINGS OF POWER CONFERRED ON THEM FOR BEING WHITE THEN WE CAN TALK ABOUT THE PLAYING FIELD BEING LEVEL SAYS ALEXANDER LAING A MUSICPERFORMANCE MAJOR WHOSE FATHER IS BLACK AND MOTHER IS WHITE A WHITE SENIOR JEFFREY SMITH 21 EXPRESSES FEAR AT THE PROSPECT OF SITTING AT AN ALLBLACK CAFETERIA TABLE I DON'T LIKE HOW THIS SOUNDS BUT I HONESTLY WOULD BE WORRIED FOR MY SAFETY HE SAYS HE THEN SHARES TWO INSTANCES OF WHITES JUST OFF CAMPUS BEING MUGGED OR HARASSED AND THERE WERE LARGE GROUPS OF BLACKS AROUND BUT HE DOESN'T KNOW IF THE BLACKS WERE UNIVERSITY STUDENTS WHEN MR SMITH'S COMMENT IS RECOUNTED FOR MS MORGAN IN THE UNIVERSITY'S MAIN LIBRARY SHE OFFERS THIS RESPONSE THE ONLY CONCEIVABLE WAY I THINK HE COULD GET HURT IS IF HE STUCK HIMSELF WITH HIS FORK THERE ARE SQUEALS OF LAUGHTER AMONG OTHER BLACK STUDENTS MANY OF WHOM SIT TOGETHER AT MEALS WHEN THE STORY IS TOLD TO THEM AT THE BLACK HOUSE THAT'S SO ARROGANT SAYS MR LAING 20 THIS ISN'T ABOUT HIM IT'S ABOUT US SITTING TOGETHER BECAUSE WE ENJOY EACH OTHER'S COMPANY WHY DOES EVERYTHING WE DO HAVE TO DO WITH THEM ASKS MILTON BILLUPS 22 A JUNIOR FROM MIAMI HOWEVER YOUNG WHITES TAKE IT PERSONALLY THEY SEE EVERYTHING THROUGH AN EGOCENTRIC PRISM SAYS JAMES TURNER DIRECTOR EMERITUS AND PROFESSOR OF CORNELL UNIVERSITY'S AFRICANA STUDIES AND RESEARCH CENTER AND A LEADER OF NORTHWESTERN'S BLACK STUDENT PROTEST IN 1968 IF YOU WALK INTO THE DINING HALL WHY IS IT YOUR PERCEPTION THAT THE AFRICANAMERICAN STUDENTS ARE ALL SITTING IN ONE BLOCK ASKS MR TURNER IF THAT IS SO THEN WHAT ELSE IS TRUE THAT THE WHITE STUDENTS ARE SITTING ALL TOGETHER BUT THE WHITE PEOPLE SITTING ALL TOGETHER IS NORMATIVE TO YOU INDEED ANDREW HACKER A WHITE PROFESSOR OF SOCIOLOGY AT QUEENS COLLEGE IN NEW YORK AND AN EXPERT ON RACE SAYS AT QUEENS COLLEGE WE'VE GOT A GROUP THAT EATS BY THEMSELVES AND NOBODY COMMENTS ON IT THEY'RE ULTRAORTHODOX JEWS SIMILARLY OTHERS SAY WHITES DON'T OBJECT WHEN HISPANIC STUDENTS EAT WITH HISPANIC STUDENTS AND ASIANS WITH ASIANS BUT SOME WHITES THINK AFRICANAMERICANS ARE MERELY DISENFRANCHISED WHITE PEOPLE SAYS DEAN SPURLOCKEVANS WHITE STUDENTS BELIEVE BLACKS WANT THEM TO PAY FOR THE COUNTRY'S RACIST PAST A PAST THEY TOO DENOUNCE I HAD NOTHING TO DO WITH ANY OF THAT BAGGAGE BUT I'M BEING PUNISHED SAYS MR SMITH WHO WILL BE A MANAGEMENT CONSULTANT AFTER GRADUATION SUCH CLAIMS OF INNOCENCE ANGER MANY BLACKS IF YOU CONTINUE TO BENEFIT FROM THE SINS OF YOUR FATHER YOU SHARE THE GUILT MR LAING SAYS SOME WHITE STUDENTS MAKE AN EFFORT TO CROSS THE RACIAL DIVIDE LISA TODOROVICH A SENIOR FROM MILWAUKEE WHO IS THE FIRST IN HER FAMILY TO ATTEND COLLEGE TOOK AN AFRICANAMERICAN STUDIES CLASS LAST SEMESTER ON THE WRITINGS OF TONI MORRISON IN A CLASS EQUALLY SPLIT BETWEEN BLACKS AND WHITES MS TODOROVICH 22 FOUND HERSELF FOR THE FIRST TIME FEELING SELFCONSCIOUS ABOUT HER SKIN COLOR WHEN THE CLASS DISCUSSED MORRISON'S THE BLUEST EYE A BOOK ABOUT HOW WHITE IDEALS OF BEAUTY AFFECT A BLACK GIRL MS TODOROVICH FELT SHE TOO COULD RELATE AS A CHILD SHE FELT UNATTRACTIVE BECAUSE HER LOOKS DIDN'T MEASURE UP TO SHIRLEY TEMPLE'S BUT I DIDN'T OPEN MY MOUTH SHE SAYS BECAUSE SHE CONSIDERED HER CHILDHOOD PAIN TRIVIAL COMPARED WITH THE EXPERIENCES OF BLACK WOMEN IN THE CLASS A DISCUSSION OF THE GRANDMOTHER'S STIRRING SERMON IN BELOVED IN WHICH THE AGING BLACK WOMAN EXHORTS BLACKS TO LOVE THEMSELVES I WAS CRYING BUT I DIDN'T WANT ANYBODY TO SEE SHE SAYS WHEN POLLED BY THE NORTHWESTERN ADMINISTRATION AFRICANAMERICAN STUDENTS SAY THEY WOULD LIKE RELATIONS WITH WHITES TO BE FRIENDLY ENOUGH BUT NOT CLOSE OR COOPERATIVE BUT NOT NECESSARILY FRIENDLY WHAT THEY WANT IS EQUALITY OF OPPORTUNITY SAYS SYREETA CARRINGTON AN 18YEAROLD FRESHMAN AFRICANAMERICAN STUDIES MAJOR FROM ENGLEWOOD NJ I DON'T NEED TO DRINK TEA AND EAT CRUMPETS WITH WHITES BUT IF THERE'S A JOB OPPORTUNITY I WANT TO KNOW ABOUT IT AGREES MS RAMBEAUWE'RE TRYING TO MAKE SURE WE CAN SURVIVE IT MEANS AN UPLIFTING OF OUR GROUP LOOK AT THIS BLACK KID DOING DRUGS I'VE GOT TO WORRY ABOUT HIM BEFORE I CAN HOLD A WHITE'S HAND BUT YOUNG BLACKS WHO AREN'T AS PREOCCUPIED WITH BLACK UNITY AND WHO SPEND MORE TIME WITH WHITES THAN BLACKS LAY THEMSELVES OPEN TO CRITICISM AND RIDICULE BY BLACK CLASSMATES MS YANCY WHO HOLDS THE NO 2 STUDENTGOVERNMENT POST ACKNOWLEDGES THAT SHE OFTEN CONFRONTS BLACK CLASSMATES WHO MOVE ALMOST EXCLUSIVELY IN WHITE CIRCLES I HAVE A HARD TIME RELATING TO THAT SHE SAYS IN THE REAL WORLD ARE THEY GOING TO MAKE AN EFFORT TO GIVE ANYTHING BACK TO THE BLACK COMMUNITY THE DIVISIONS HAVE BEEN ESPECIALLY WRENCHING FOR REGINALD NEWTON 21 WHO HAS SPENT HIS FOUR YEARS AT NORTHWESTERN TRYING TO BALANCE WHITE AND BLACK ALLEGIANCES TRYING TO PLEASE HIS PARENTS WHO WISH HE HAD GONE TO AN ALLBLACK SCHOOL HIS BLACK FRIENDS WHO WANT TO SEE MORE OF HIM AND HIS WHITE FRIENDS WHO RESENT IT WHEN HE HANGS OUT WITH BLACKS WHEN HE WAS A FRESHMAN LIVING IN A MOSTLY WHITE DORMITORY MR NEWTON WOULD WALK DOWN TO THE CAFETERIA FOR DINNER WITH HIS WHITE HALLMATES BUT THEN I'D GO AND SIT WITH MY BLACK FRIENDS AFTER SEVERAL WEEKS MR NEWTON FELT HIS WHITE FRIENDS RESENTED HIS BEHAVIOR I REALIZED THIS IS SILLY SO MY POLICY BECAME IF I COME DOWN WITH YOU I EAT WITH YOU THAT MEANT HE ATE MOST OFTEN WITH WHITE FRIENDS HE RECEIVED SEVERAL INVITATIONS TO JOIN WHITE FRATERNITIES AND WAS TEMPTED TO JOIN WHITE FRATS ARE BIGGER THAN BLACK FRATS THEY HAVE HOUSES AND ARE MORE APPEALING IN A WAY HE SAYS BUT HE WORRIED THAT BLACK STUDENTS AND HIS FATHER WHO WAS IN A BLACK FRATERNITY WOULD DISAPPROVE HE CHOSE TO AVOID FRATERNITIES ALL TOGETHER OVER THE FOUR YEARS MR NEWTON DEVELOPED TWO VERY SEPARATE SETS OF FRIENDS ONE BLACK THE OTHER WHITE AS HE PREPARES TO GRADUATE HIS CLOSEST FRIENDS ARE WHITE AND HE IS DATING A WHITE WOMAN WHEN HE WAS HOSPITALIZED FOR A KNEE OPERATION AND HIS PARENTS CAME TO VISIT THEY NOTICED THAT HE HAD MANY WHITE VISITORS FROM CAMPUS AND ASKED DON'T YOU HAVE ANY BLACK FRIENDS WEEKEND NIGHTS MR NEWTON HAS TO CHOOSE WHETHER TO HANG OUT WITH HIS WHITE OR BLACK FRIENDS NINE TIMES OUT OF 10 HE GOES OUT WITH HIS WHITE PALS BUT IT'S NOT ALWAYS COMFORTABLE AT WHITE PARTIES HE IS OFTEN MISTAKEN FOR OTHER BLACK MEN MEMBERS OF VARSITY SPORTS TEAMS OR OTHER BLACK GUYS WHO GO TO WHITE PARTIES EVEN IF WE DON'T LOOK ANYTHING ALIKE FOR SOME OF HIS WHITE FRIENDS HE IS THE ONLY BLACK THEY KNOW TO THEM I'M REGGIE THE BLACK GUY HE SAYS IDEALLY MR NEWTON SAYS I'D LIKE TO SEE ALL MY FRIENDS BLACK AND WHITE HANG OUT TOGETHER ALL THE TIME IT'S BAD BECAUSE BOTH SIDES ARE MISSING OUT IT'S LIKE HAVING TWO BEST FRIENDS WHO DON'T LIKE EACH OTHER THAT MUCH 9404220001 940422 LETTERS TO THE EDITOR SHAREHOLDER SUITS ARE GETTING RESULTS IN YOUR MARCH 9 ARTICLE SHAREHOLDER SUITS BESET MORE SMALL COMPANIES YOU CLEARLY INTEND TO DAMN BUT YOU ALSO PRAISE AND NOT FAINTLY YOU WRITE THAT COMPANIES ARE FIGHTING BACK AGAINST SHAREHOLDER SUITS HOW BY DISCUSSING POTENTIAL PROBLEMS IN THEIR PUBLIC DOCUMENTS MORE FULLY WHILE TONING DOWN THE HYPE IN THEIR DISCUSSIONS WITH ANALYSTS THIS IS FIGHTING BACK TO ME IT SOUNDS LIKE GETTING RELIGION THE NATION'S SECURITIES LAWS AIM TO STOP SECURITIES FRAUD AND MISREPRESENTATION THE PLAINTIFFS' SECURITIES LAWYERS YOU VILIFY AIM TO ENFORCE THOSE LAWS BY THE MECHANISM OF THE PRIVATE RIGHT OF ACTION IF AS YOU OBSERVE COMPANIES ARE FIGHTING BACK BY TELLING INVESTORS AND SHAREHOLDERS THE TRUTH THEN THE PLAINTIFFS' LAWYERS ARE DOING THEIR JOB THEY ARE ADVANCING THE NATIONAL INTEREST IN RESPONSE TO THE STATEMENT OF SAN DIEGO CLASSACTION LAWYER WILLIAM LERACH THAT THE ADAPTEC CEO DOESN'T WANT TO BE CALLED TO ACCOUNT I MUST RESPOND UNDER MY LEADERSHIP ADAPTEC HAS COMPLIED WITH ALL APPLICABLE FEDERAL STATE AND LOCAL STATUTES AND REGULATIONS SINCE BECOMING A PUBLIC COMPANY IN 1986 WE FINISHED OUR 39TH CONSECUTIVE PROFITABLE QUARTER ON MARCH 31 NO AUDIT ADJUSTMENT HAS EVER EVEN BEEN PROPOSED BY OUR INDEPENDENT AUDITORS AND SHAREHOLDER VALUE HAS INCREASED FROM AN IPO PRICE OF 950 TO 84 A SHARE UNADJUSTED FOR STOCK SPLITS OR FROM 70 MILLION AT THE IPO TO 12 BILLION TODAY ADAPTEC IS RECOGNIZED AS A TECHNOLOGY LEADER IN THE PERSONAL COMPUTING MARKET EMPLOYS 800 AMERICANS AND HAS REVENUES ABROAD OF ABOUT 200 MILLION THE PASSAGE OF THE DODDDOMENICI BILL TO CURTAIN CLASSACTION LITIGATION IS ESSENTIAL TO ENSURE THE CONTINUED GROWTH OF AMERICAN FIRMS IN THE HIGHTECH INDUSTRY TO CONTINUE TO CREATE JOBS FOR AMERICANS AND TO MAINTAIN AMERICA'S GLOBAL COMPETITIVENESS THIS TAX ON INNOVATION MUST BE ELIMINATED 9404220101 940331 KILROY WAS THERE AND HE MAY RETURN TO CELEBRATE DDAY FIFTY YEARS LATER THOUSANDS OF VETS WILL JOIN FORCES WITH VIPS TO HIT THE BEACH BY LAWRENCE INGRASSIA STAFF REPORTER OF THE WALL STREET JOURNAL PORTSMOUTH ENGLAND JUST BACK FROM A RECONNAISSANCE MISSION IN FRANCE A DEFENSE MINISTRY AGENT HUDDLES WITH HIGHLEVEL OFFICIALS DRAWING UP THE FINAL PLANS FOR THE INVASION NOTHING MUST GO WRONG SO THE GROUP A BRITISH ARMY BRIGADIER ROYAL NAVY OFFICERS A CONTINGENT FROM BUCKINGHAM PALACE AND ASSORTED ADVISERS SCRUTINIZES THE PREPARATIONS LEAVING NOTHING TO CHANCE WHAT FORMATIONS WILL THE AIRCRAFT FLY WHERE WILL THE FLOTILLA OF WARSHIPS ANCHOR IN THE ENGLISH CHANNEL HOW WILL LOGISTICS EXPERTS MANAGE THE MASSIVE MOVEMENT OF PEOPLE AND VEHICLES THESE QUESTIONS ALREADY HAVE BEEN DECIDED BUT OTHER DETAILS MUST BE ADDRESSED WHOSE HANDS WILL QUEEN ELIZABETH II SHAKE AT THE GARDEN PARTY WILL THE FACILITIES BE GOOD ENOUGH FOR HER WHAT UNIFORMS WILL THE MILITARY BANDS WEAR PERHAPS MOST IMPORTANT WHERE SHOULD THE TELEVISION CAMERAS BE ALLOWED TO SET UP TO MAKE THE JOURNALISTS HAPPY I WANT BIG PUBLICITY MARK STEELS HEAD OF PUBLIC RELATIONS FOR THE WORLD WAR II COMMEMORATION TEAM SAYS LATER IN LONDON WHILE STABBING AT PHOTOGRAPHS ON A WALL SHOWING THE STRATEGIC SITES DDAY PLUS 50 YEARS THAT IS IS RAPIDLY APPROACHING AND THE PLANNING FOR THE JUNE 6 ANNIVERSARY OF THE ALLIED INVASION SEEMS ALMOST AS ELABORATE AS THE PREPARATIONS FOR THE REAL THING FOR MONTHS THE ALLIES HAVE BEEN MARSHALING THEIR FORCES PLATOONS OF PR MEN SQUADRONS OF PROTOCOL OFFICERS AND DIVISIONS OF TOURISM BOOSTERS HAVE BEEN SCURRYING FROM LONDON TO WASHINGTON TO PARIS NOT TO MENTION WEYMOUTH BOURNEMOUTH AND BOVINGTON IN MANY RESPECTS THIS IS FAR MORE DIFFICULT SAYS MR STEELS IN 1944 MILITARY PLANNERS ONLY HAD TO WORRY ABOUT THEIR OWN PEOPLE IN 1994 THERE WILL BE 14 HEADS OF STATE HUNDREDS OF VIPS THOUSANDS OF MILITARY PERSONNEL AND HUNDREDS OF THOUSANDS OF VETERANS AND CIVILIAN VISITORS RAISING THE SPECTER OF A LOGISTICAL NIGHTMARE IN THIS CRAMPED SEAPORT ON ENGLAND'S SOUTHERN COAST THE OFFICIAL EVENTS BEGIN SATURDAY JUNE 4 WITH AN EXCLUSIVE GARDEN PARTY NEAR HERE AT SOUTHWICK HOUSE WHERE GEN DWIGHT EISENHOWER ORDERED THE INVASION TO BEGIN THAT WILL BE FOLLOWED BY A CEREMONY ON AN ISLAND IN PORTSMOUTH'S HARBOR AND A STATE DINNER ON SUNDAY DIGNITARIES VETERANS AND CIVILIAN VISITORS WILL GATHER FOR A MEMORIAL SERVICE ON SOUTHSEA COMMON A LARGE GREEN EXPANSE ON THE WATERFRONT THEN AT LEAST 80 SHIPS WILL SAIL ACROSS THE CHANNEL FOR OBSERVANCES IN NORMANDY FRANCE ON JUNE 5 AND 6 BUT TOURISM PROMOTERS ARE PLANNING SCORES OF OTHER EVENTS A 1940SSTYLE BIGBAND DANCE CLANDESTINE OPERATIONS REENACTMENTS A MISS 1944 COMPETITION PROPAGANDAFILM SHOWINGS AND THE WORLD'S LARGEST EVER MILITARY VEHICLE RALLY WHEN THE 50TH ANNIVERSARY WAS ON THE HORIZON WE DECIDED TO LOOK AT WHAT EVENTS COULD GO ON TO MARKET I MEAN MARK THE ANNIVERSARY SAYS JAMES CORRIGAN WHO IS COORDINATING FESTIVITIES IN TOWNS AND VILLAGES IN THE COUNTY OF DEVON THE MEMORIAL PREPARATIONS HAVE BEEN GOING ON FOR SO LONG SAYS RETIRED COL BILL STEVENS A CITY OFFICIAL WHOSE DDAY WORK STARTED IN 1992 THAT ORIGINALLY I INVITED PRESIDENT BUSH TO BE IN PORTSMOUTH PRESIDENT CLINTON OF COURSE IS EXPECTED INSTEAD JUST AS IN 1944 THE MAIN EVENTS HERE IN PORTSMOUTH WHERE THE BRITISH TROOPS WERE LAUNCHED WILL REQUIRE MILITARY PRECISION AND IN SOME CASES SECRECY WHAT FOOD WILL BE SERVED AT THE STATE BANQUET WE NEVER TALK ABOUT MENUS ANSWERS MR STEELS SECURITY REASONS POISON THE COMMEMORATIVE SERVICE ON SOUTHSEA COMMON HAS BEEN PLANNED TO THE SECOND A FLY PAST OF FOUR GROUPS OF PLANES LED BY VINTAGE WORLD WAR II AIRCRAFT WILL COMMENCE AT 1242 PM SO THAT THEY WILL FLY DIRECTLY OVER THE ROYAL YACHT BRITANNIA AS IT PASSES A WAR MEMORIAL THERE WILL BE 45SECOND INTERVALS BETWEEN GROUPS WITH THE LAST CLUSTER OF MODERN JETS PASSING AT EXACTLY 1245 THE EXECUTION OF THAT HAS TO BE A VERY SLICK OPERATION SAYS LT STEVE DARGAN A ROYAL NAVY RESERVIST CALLED UP FOR PR DUTY EVERY CONTINGENCY IS BEING ANTICIPATED FOR EXAMPLE HOW CAN PLANNERS BE SURE MR CLINTON'S ARMORED LIMOUSINE DOESN'T GET STUCK WHILE CROSSING THE GRASSY FIELD TO THE STAGE ON SOUTHSEA COMMON THE ANSWER METAL TRACKING AND TOILETS AT SOUTHWICK HOUSE HAVE BEEN CLOSELY INSPECTED TO ENSURE THEY ARE GOOD ENOUGH FOR THE QUEEN AND OTHER DIGNITARIES AFTER ALL THAT THEY PROBABLY WON'T EVEN USE THE LOOS GRUMBLES A NAVY MAN WHILE THERE HAS BEEN A LOT OF COOPERATION AMONG ALLIED PLANNERS JUST LIKE 50 YEARS AGO THERE ALSO HAS BEEN POLITICAL SQUABBLING AND NEEDLING AT EACH OTHERS' EXPENSE IT'S TYPICAL OF THE BLOODY AMERICANS BRINGING THEIR BIGGEST SHIP THE AIRCRAFT CARRIER USS GEORGE WASHINGTON OVER EVERYTHING HAS GOT TO BE BIGGER AND BETTER JUST LIKE 50 YEARS AGO SAYS MR STEELS CITING AN EXAMPLE OF THE FRIENDLY RIBBING HE HAS OVERHEARD PLYMOUTH WHERE MANY US TROOPS EMBARKED FOR NORMANDY IS ESPECIALLY MIFFED SO FAR IT HASN'T MANAGED TO GET ANY AMERICAN BIGWIGS FOR ITS CEREMONIES WE'RE NOT ONLY HURT WE FEEL A LITTLE BIT SNUBBED SAYS CITY COUNCILOR PETER WOOD A 68YEAROLD DDAY VETERAN US OFFICIALS SAY THERE ISN'T TIME FOR THE PRESIDENT TO VISIT EVERYWHERE SOME GERMANS ARE UNHAPPY TOO BECAUSE THEY WEREN'T INVITED TO THE REMEMBRANCE CEREMONIES PARIS HAS SMOOTHED FEATHERS WITH BONN HOWEVER BY AGREEING TO A JOINT CELEBRATION ON JUNE 8 IN HEIDELBERG TO COMMEMORATE NOT THE WAR BUT THE HISTORY THAT BINDS THE COUNTRIES ANOTHER ISSUE CONCERNS HOW MANY VETS FROM EACH NATION WILL ATTEND THE MAJOR EVENTS ESPECIALLY THE LIMITED SPOTS AT THE GARDEN PARTY AND STATE DINNER IT IS SO SENSITIVE THAT THE BRITISH WON'T TELL WE'VE GOT THREESTAR ADMIRALS WHO AREN'T GOING TO GET ANYWHERE NEAR HERE KICKING UP A FUSS SAYS MR STEELS NO LET'S SAY THE GREAT ESTEEM THAT THEY'RE HELD IN IS NOT GOING TO GET THEM IN A GROUP OF SEPTUAGENARIAN PARATROOPERS ALSO IS ANNOYED THE US VETS WHO PARACHUTED INTO EUROPE IN 1944 WANT TO REENACT THEIR HEROICS IN NORMANDY ON JUNE 6 IF THERE'S ANYBODY ENTITLED TO DO THIS IN COMMEMORATION IT'S THE MEN WHO WERE THERE BEFORE WHOSE BUDDIES DIED CONTENDS RICHARD MANDICH 68 OF SAN DIEGO TO PROVE THEIR FITNESS MEMBERS OF HIS RETURN TO NORMANDY ASSOCIATION HAVE TAKEN AT LEAST THREE QUALIFYING JUMPS IN RECENT MONTHS NO WAY SAYS THE PENTAGON FEARING SOME MIGHT GET HURT ONE THING NO ONE CAN CONTROL IS THE NOTORIOUSLY FICKLE ENGLISH WEATHER IT COULD BE STORMY JUST AS IT WAS IN 1944 WHEN IT CAUSED THE INVASION TO BE DELAYED YOU CAN'T DO THAT NOW BECAUSE IT WOULDN'T BE THE ANNIVERSARY SAYS A SPOKESMAN AT THE US EMBASSY IN LONDON GOD HELP US WE BETTER HAVE GOOD WEATHER SEE RELATED LETTER LETTERS TO THE EDITOR DDAY 50 YEARS LATER WE'RE READY TO JUMP WSJ APRIL 22 1994 9403310057 YY94 MM04 9404210185 940421 BHC UNIT CHANGES ITS NAME PHILADELPHIA BHC FINANCIAL INC'S TEXAS FIRST SECURITIES UNIT CHANGED ITS NAME TO TRADESTAR INVESTMENTS INC THE COMPANY SAID THE UNIT A REGIONAL DISCOUNT BROKERAGE FIRM CHANGED ITS NAME SO IT WOULD BE BETTER ABLE TO MARKET ITS SERVICES BEYOND TEXAS 9404210184 940421 WHO'S NEWS NALCO CHEMICAL CO NALCO CHEMICAL CO NAPERVILLE ILL EJ TED MOONEY 52YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER OF THIS CHEMICALS CONCERN SUCCEEDING WH CLARK 62 WHO CONTINUES AS CHAIRMAN UNTIL JULY 1 MR MOONEY RELINQUISHES THE POST OF OPERATING CHIEF WHICH WILL REMAIN VACANT 9404210183 940421 WHO'S NEWS PIPER JAFFRAY COS PIPER JAFFRAY COS MINNEAPOLIS KAREN M BOHN 40 YEARS OLD FORMERLY CHIEF ADMINISTRATIVE OFFICER OF PIPER JAFFRAY COS AND ITS PIPER JAFFRAY INC BROKERAGE UNIT WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PIPER TRUST A UNIT EFFECTIVE MAY 1 SHE SUCCEEDS EDWARD BAKER WHO WILL REMAIN A MANAGING DIRECTOR OF PIPER TRUST 9404210182 940421 DIVIDEND NEWS FIRST FEDERAL CAPITAL CORP FIRST FEDERAL CAPITAL CORP LA CROSSE WIS DECLARED A 10 STOCK DIVIDEND AND RAISED ITS CASH DIVIDEND ON POSTSPLIT SHARES TO 13 CENTS A SHARE FROM 10 CENTS A SHARE THE SPLIT AND HIGHER PAYMENT RATE ARE PAYABLE JUNE 2 TO STOCK OF RECORD MAY 12 9404210181 940421 NATIONAL OFFICE VACANCIES CONTINUE A STEADY DECLINE A WALL STREET JOURNAL NEWS ROUNDUP THE NATIONAL OFFICE VACANCY RATE CONTINUED ITS DECLINE IN THE FIRST QUARTER WITH SUBURBAN VACANCIES REACHING THEIR LOWEST LEVEL SINCE 1986 ACCORDING TO CUSHMAN & WAKEFIELD INC IN THE DOWNTOWNS OF MAJOR CITIES VACANCIES DROPPED TO 184 THE LOWEST LEVEL SINCE EARLY 1991 FROM 187 AT YEAR END THE BROKERAGE FIRM REPORTED IN THE SUBURBS THE VACANCY RATE DROPPED TO 183 FROM 189 IN THE FOURTH QUARTER ARTHUR MIRANTE II CUSHMAN & WAKEFIELD PRESIDENT AND CHIEF EXECUTIVE OFFICER ATTRIBUTED THE CONTINUING DECLINE TO THE ECONOMIC RECOVERY COUPLED WITH A LACK OF NEW OFFICE CONSTRUCTION HE SAID HE EXPECTS THE TREND TO CONTINUE MIDTOWN MANHATTAN CHICAGO HOUSTON SAN FRANCISCO AND WASHINGTON WERE AMONG THE CITIES WHERE RATES DROPPED SIGNFICANTLY THE SUBURBS IN NORTHERN VIRGINIA SOUTHWESTERN CONNECTICUT AND NORTHERN NEW JERSEY AS WELL AS NEAR BOSTON AND HOUSTON ALSO SAW VACANCIES DECLINE 9404210180 940421 TECHNOLOGY SUPERMAC POSTS LOSS FOR LATEST QUARTER RADIUS TOPS FORECASTS A WALL STREET JOURNAL NEWS ROUNDUP TWO RIVALS IN COMPUTERDISPLAY EQUIPMENT SURPRISED WALL STREET WITH THEIR EARNINGS SUPERMAC TECHNOLOGY INC REPORTING AN UNEXPECTED NET LOSS AND RADIUS INC POSTING SLIGHTLY BETTER THAN EXPECTED NET INCOME ON THE NASDAQ STOCK MARKET YESTERDAY SUPERMAC'S STOCK PLUNGED 22 TO CLOSE AT 5625 DOWN 1625 RADIUS'S SHARES CLOSED AT 6875 UNCHANGED THE CALIFORNIA COMPANIES SPECIALIZE IN GRAPHICS ACCESSORIES AND DISPLAYS ESPECIALLY FOR PERSONAL COMPUTERS MADE BY APPLE COMPUTER INC SUPERMAC BASED IN SUNNYVALE REPORTED A FIRSTQUARTER NET LOSS OF 15 MILLION OR 17 CENTS A SHARE COMPARED WITH NET INCOME OF 21 MILLION OR 25 CENTS A SHARE IN THE YEAREARLIER QUARTER FINANCIAL ANALYSTS' MEAN ESTIMATE FOR SUPERMAC'S EARNINGS WAS FOR ONE CENT A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC SUPERMAC ATTRIBUTED THE LOSS TO INCREASED PRICE COMPETITION IN ITS MARKETS AND A SLOWDOWN IN SALES CAUSED BY APPLE CUSTOMERS' HOLDING OFF ON PURCHASES AS THEY WAITED FOR APPLE BASED IN CUPERTINO CALIF TO INTRODUCE ITS NEW GENERATION OF MACINTOSH PCS SUPERMAC'S SALES FELL 87 TO 399 MILLION FROM 437 MILLION IN THE YEAREARLIER QUARTER RADIUS SAN JOSE REPORTED NET INCOME OF 12 MILLION OR EIGHT CENTS A SHARE IN ITS FISCAL SECOND QUARTER ENDED MARCH 31 COMPARED WITH A NET LOSS OF 53 MILLION OR 39 CENTS A SHARE A YEAR EARLIER ANALYSTS HAD EXPECTED NET INCOME OF SEVEN CENTS A SHARE ACCORDING TO ZACKS SALES WERE UP 40 TO 432 MILLION FROM 309 MILLION SALES OF HIGHEND GRAPHICS CARDS WERE PARTICULARLY STRONG IN THE QUARTER RADIUS SAID AND THE IMPACT OF PRICE CUTS ON GROSS MARGINS WAS LARGELY OFFSET BY IMPROVED OPERATING EFFICIENCY 9404210179 940421 CANADA AUCTIONS 8 BONDS OTTAWA THE CANADIAN GOVERNMENT SOLD IN AN AUCTION 12 BILLION CANADIAN DOLLARS US8668 MILLION OF 8 BONDS DUE JUNE 1 2023 AT AN AVERAGE YIELD OF 8686 THE PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9404210178 940421 INTERNATIONAL FOREIGN INVESTORS REMAIN CAUTIOUS ABOUT SOUTH AFRICA BY NEIL BEHRMANN SPECIAL TO THE WALL STREET JOURNAL LONDON INTERNATIONAL INVESTORS REMAIN SKITTISH ABOUT SOUTH AFRICA DESPITE THE AGREEMENT BY ZULU CHIEF MANGOSUTHU BUTHELEZI TO PARTICIPATE IN THE NATION'S FIRST MULTIRACIAL ELECTIONS THE SOUTH AFRICAN INDEX OF INDUSTRIAL STOCKS SOARED 204 POINTS OR 35 IN THE TWO DAYS FOLLOWING THE AGREEMENT GOLD STOCKS HOWEVER FELL AS DID PRECIOUS METALS PRICES THE DECLINE CAME IN PART BECAUSE PROSPECTS OF REDUCED BLOODSHED LESSENED FEARS OF FALLING SUPPLIES FROM SOUTH AFRICAN PRODUCERS WHILE PEACEFUL ELECTIONS COULD LAY THE GROUNDWORK FOR RAPID ECONOMIC GROWTH IN A POSTAPARTHEID SOUTH AFRICA THAT IS RICH IN NATURAL RESOURCES FOREIGN INVESTORS REMAIN WARY BROKERS SAY THERE HAS BEEN A SHARP INCREASE IN REQUESTS FOR INFORMATION ABOUT SOUTH AFRICAN CORPORATIONS SAYS JOHN BERGTHEIL SOUTH AFRICAN ANALYST AT LONDON BROKER JAMES CAPEL SO FAR HOWEVER THOSE REQUESTS HAVEN'T TRANSLATED INTO BUYING ORDERS HE SAYS INVESTORS PARTICULARLY IN THE US ARE CAUTIOUS MAINLY BECAUSE THEY WERE BURNT BY THE NATION'S VOLATILE CURRENCY EQUITY AND BOND MARKETS IN THE PAST SIX MONTHS DEALERS SAY SHARES OF THE NEW YORKBASED 72 MILLION SOUTH AFRICA FUND ESTABLISHED A MONTH AGO WERE TRADING AT 11625 WEDNESDAY DOWN 23 FROM THE INITIAL PRICE OF 15 WHEN THE FUND WAS FLOATED FOREIGN INVESTORS BUY AND SELL SOUTH AFRICAN SECURITIES THROUGH A VOLATILE CURRENCY CALLED THE FINANCIAL RAND THAT UNIT IS TRADING AT A DISCOUNT OF 28 TO THE COMMERCIAL RAND WHICH IS USED FOR TRADE TRANSACTIONS IN 12 DAYS TRADING SINCE MARCH 31 THE COMMERCIAL RAND SLID BY 4 THE FINANCIAL RAND HOWEVER PLUNGED BY 14 TO AN ALLTIME LOW OF 175 US CENTS AND THEN RECOVERED ALMOST ALL ITS LOSSES TO CLOSE AROUND 20 CENTS ON WEDNESDAY FOREIGN HOLDERS INCLUDING EMERGINGMARKET AND HEDGE FUNDS IN THE US WHICH BOUGHT SOUTH AFRICAN STOCKS AND BONDS SOON AFTER SANCTIONS WERE LIFTED LAST SEPTEMBER ARE SMARTING FROM LOSSES DEALERS SAY 9404210177 940421 INTERNATIONAL FOREIGN INSIGHT SERBS BET THAT THE WEST WON'T RISK THE THING THEY FEAR GROUND TROOPS BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL BELGRADE YUGOSLAVIA HOURS AFTER THE FIRST AMERICAN BOMBS FELL ON SERB POSITIONS AROUND GORAZDE LAST WEEK A CLOSE AIDE TO SERBIAN PRESIDENT SLOBODAN MILOSEVIC WENT ON NATIONAL TELEVISION TO ASSURE HIS COUNTRYMEN THAT THE US REALLY DIDN'T MEAN BUSINESS CLINTON HAS HIS OWN PROBLEMS IN THE US SAID MIHAJLO MARKOVIC A LEADER OF SERBIA'S RULING SOCIALIST PARTY THE FORMER COMMUNISTS HE POINTED TO AMERICA'S BUDGET DEFICIT EDUCATION WOES AND BIG CITY CRIME NOW BOSNIA PULLS CLINTON AWAY FROM THIS HE CAN'T AFFORD TO HAVE EVEN A FEW SOLDIERS KILLED IN BOSNIA FOR TWOANDAHALF YEARSSINCE THE FIRST SIZABLE YUGOSLAV TOWN THE CROATIAN CITY OF VUKOVAR WAS REDUCED TO A RUBBLE HEAP BY SERBIAN FORCES IN NOVEMBER 1991 THE SERBIAN LEADERSHIP HAS BEEN BETTING THAT THE WEST UNDER AMERICA'S ERRATIC GUIDANCE WON'T INTERVENE TO STOP ITS CREATION OF A GREATER SERBIA NOW THAT THE NORTH ATLANTIC TREATY ORGANIZATION HAS LAUNCHED TWO VERY LIMITED AIR STRIKES WHICH LIKE WAVING A RED FLAG IN FRONT OF A BULL MERELY TAUNTED THE SERBS INTO GREATER FEROCITY MR MILOSEVIC AND HIS PARTNERS IN BOSNIA ARE GAMBLING THAT THE WEST WON'T DO THE ONE THING THEY REALLY FEAR INTRODUCE GROUND TROOPS TO PUSH BACK SERB GAINS WITH VIRTUALLY THE WHOLE WORLD NOW TURNING ITS BACK ON THE SERBS EVEN THEIR SLAVIC AND CHRISTIAN ORTHODOX BRETHREN IN RUSSIA FEEL DEEPLY BETRAYED BY THE SHAMELESS STRING OF LIES AND BROKEN PROMISES FROM SERB LEADERS IN BELGRADE AND PALE LAST WEEKEND IT MAY APPEAR THAT MR MILOSEVIC HAS FINALLY OVERPLAYED HIS HAND BUT THE SERBIAN LEADERSHIP WHICH CONTROLS 70 OF BOSNIAHERZEGOVINA STILL BELIEVES IT HOLDS THE TRUMP CARDS THE WAY THEY SEE IT THE UN AND NATO HAVE TWO OPTIONS EITHER INTERVENE MASSIVELY FOLLOWING UP AIR STRIKES WITH GROUND TROOPS OR RATIFY THE SERBS' VICTORY AT THE NEGOTIATING TABLE IN CONVERSATIONS ACROSS SERBIA FROM PARAMILITARY LEADERS TO ORDINARY CITIZENS THE OFTENINVOKED THREAT OF SENDING HOME WESTERN SOLDIERS IN BODY BAGS RINGS WITH BOTH BRAVADO AND FEAR THE SERB HOPE IS THAT SUCH TALK WILL SCARE OFF THE WEST FOR DEEP IN THEIR NATIONALIST HEARTS THEY KNOW THAT SERBIAN FORCES CAN'T BEAT THE US AND ITS ALLIES AT FULL MIGHT THE PRESENT THREAT FROM WASHINGTON TO WIDEN THE AIR STRIKES AND INCREASE THE ECONOMIC SANCTIONS ISN'T LIKELY TO DETER A PEOPLE GRIPPED WITH AN USAGAINSTTHEWORLD PSYCHOSIS AFTER THE FIRST LIMITED AIR STRIKES LAST WEEK THERE WAS LITTLE PANIC AND MUCH RELIEF RELIEF THAT THE BOMBS FINALLY CAME AND DID LITTLE DAMAGE AFTER MORE THAN A YEAR OF THREATS THE SERBS' RESPONSE TO THOSE ATTACKS THE PUMMELING OF THE MUSLIM ENCLAVE OF GORAZDE A UN SAFE HAVEN HAS SHOWN UP THE FOLLY OF THOSE WHO PREDICTED THAT THEY WOULD ABANDON THEIR WEAPONS AND RUN INTO THE HILLS ONCE A COUPLE OF BOMBS FELL ON THEM RATHER GORAZDE PROVES THAT THE SERBS ARE DETERMINED TO TAKE ON THE BATTLEFIELD WHAT THEY CAN'T GET AT THE NEGOTIATING TABLE NOW ANYTHING LESS THAN WIDE PUNITIVE INTERVENTION BY THE UN AND NATO THAT WOULD CARRY THE WAR TO SERBIA ITSELF IS LIKELY TO STIMULATE THE SERBS TO PRESS THEIR OFFENSIVE ACROSS BOSNIA MOVING TO SOLIDIFY THE VITAL CORRIDOR NEAR THE NORTHERN TOWN OF BRCKO AND THEN TO EAT UP THE REMAINING UN SAFE HAVENS SREBRENICA BIHAC ZEPA AND TUZLA GAMBLING THAT THE WEST WON'T BE DRAWN INTO THE WAR WITH THE INTRODUCTION OF GROUND TROOPS THE SERBS SEE THEIR VICTORY COMING IN THE BOSNIAN GOVERNMENT'S CAPITULATION AT THE NEGOTIATING TABLE HAVING DISPLAYED THEIR MASTERY AT THE BALKAN POLITICAL GAME OF BLUSTER AND BLUFF SERBIAN LEADERS AUDACIOUSLY SUGGEST THAT HONESTY ON THE PART OF THE UN AND NATO IS THE ONLY WAY TO CONCLUDE THE WAR IF THE INTERNATIONAL BODIES AREN'T GOING TO INTERVENE TO PUSH THE SERBS BACK FROM THEIR BOSNIAN AND CROATIAN CONQUESTS THEY SHOULD RECOGNIZE THE SERBIAN VICTORY WHICH IS WHAT A NEGOTIATED PARTITION OF BOSNIA WILL BE MR MILOSEVIC HAS BEEN OUTFOXING THE WEST SINCE THE BEGINNING OF THE BREAKUP OF YUGOSLAVIA IN THE SUMMER OF 1991 COMING RIGHT AFTER THE USLED INTERVENTION TO PUSH IRAQ OUT OF KUWAIT HE BET THAT THE WEST HAD NO STOMACH TO REASSEMBLE THE INTERNATIONAL COALITION TO STOP THE SERBS THEN AS A SERIES OF INTERNATIONAL MEDIATORS COURTED HIM TO MAKE PEACE HE BET THAT EUROPE WOULDN'T GO TO WAR TO PRESERVE THE EMERGENCE OF A MUSLIMLED STATE ON THE STRATEGIC SOUTHERN FLANK OF THE CONTINENT HE COUNTED ON THE WEST'S INDECISION AND LACK OF RESOLVE BEING NO MATCH FOR HIS VISION AND DETERMINATION TO EXTEND THE BOUNDARIES OF SERBIA TO ENCOMPASS ALL SERBS IN THE FORMER YUGOSLAVIA NOW THE STATEMENTS FROM THE WHITE HOUSE THAT THE US DOESN'T INTEND TO USE AIR STRIKES TO TIP THE MILITARY BALANCE IN BOSNIA ONLY MAKE THE SERBS MORE CONFIDENT OF THEIR EVENTUAL VICTORY WE CAN COMPARE THE THREATS FROM THE UNITED STATES TO SHOOTING STARS MR MARKOVIC THE MILOSEVIC AIDE TOLD HIS COUNTRYMEN THERE ARE SOME STARS THAT ARE STILL SHINING ON US EVEN THOUGH THEY HAVE BEEN DEAD FOR MANY YEARS 9404210176 940421 BOOKED UP BIG ACCOUNTING FIRMS STRIVING TO CUT COSTS IRRITATE SMALL CLIENTS MANY COMPANIES SAY SERVICE HAS SLIPPED BADLY HURT IN PART BY STAFF TURNOVER I GOT TIRED OF BEING IGNORED' BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL MARK FEINSTEIN SAYS HE HIRED ARTHUR YOUNG & CO SIX YEARS AGO BECAUSE HE HEARD THAT THE BIG ACCOUNTING FIRM GAVE SMALL BUSINESSES DYNAMITE SERVICE BUT SOON THEREAFTER HE CONTENDS THE SERVICE FIZZLED ARTHUR YOUNG MERGED WITH ERNST & WHINNEY TO FORM ERNST & YOUNG AND TO CUT COSTS THE HUGE NEW FIRM BEGAN SLASHING STAFF IN THE FIRST TWO YEARS I'D GET A CALL BACK THE SAME DAY WHEN I HAD QUESTIONS MR FEINSTEIN SAYS AFTER THE MERGER IT TOOK UP TO A WEEK TO GET A RESPONSE ERNST & YOUNG KEPT SWITCHING STAFF WHO DRAGGED THEIR HEELS SIX MONTHS AGO MR FEINSTEIN'S LINCOLN RI VIDEORENTAL COMPANY NORTHEAST MANAGEMENT INC SWITCHED FROM ERNST & YOUNG THE NATION'S SECONDBIGGEST ACCOUNTING FIRM TO KAHN LITWIN & CO A PROVIDENCE RI FIRM WITH ONE OFFICE AND A STAFF OF ONLY 17 I GOT TIRED OF BEING IGNORED MR FEINSTEIN SAYS AN ERNST & YOUNG PARTNER DECLINES TO COMMENT SPECIFICALLY ON MR FEINSTEIN'S COMPLAINTS A SPOKESMAN FOR ERNST & YOUNG SAYS IT CONTINUES TO GIVE GOOD SERVICE TO SMALL COMPANIES BUT SIMILAR COMPLAINTS ACROSS THE COUNTRY GO FAR TOWARD EXPLAINING WHY MANY BIG COMPANIES IN FIELD AFTER FIELD ARE LOSING CLIENTS TO SMALLER COMPETITORS PERSONAL ATTENTION CAN BE CRUCIAL IN THE SERVICE SECTOR WHICH HAS GROWN TO 54 OF GROSS DOMESTIC PRODUCT FROM 47 A DECADE AGO WHEN STAFF CUTBACKS TAKE HOLD AND TOUGHER COMPETITION PUTS PRESSURE ON PRICES AND FEES BIG COMPANIES TEND TO FOCUS THEIR RESOURCES ON BIG CLIENTS AS A RESULT SMALL CLIENTS FEEL LIKE SECONDCLASS CITIZENS WHILE STILL PAYING HIGH PRICES SOME BIG COMPANIES SUCH AS INTERNATIONAL BUSINESS MACHINES CORP AND XEROX CORP FIND SERVING MANY SMALL CUSTOMERS TOO UNECONOMIC FIVE YEARS AGO IBM SOLD ALL ITS MIDRANGE COMPUTERS DIRECTLY TO SMALL BUSINESS BUT TODAY INDEPENDENT DISTRIBUTORS SELL ABOUT HALF OF THESE MACHINES IN THE US XEROX ALSO SAYS IT INCREASINGLY SELLS TO SMALL BUSINESSES THROUGH DISTRIBUTORS AND RETAILERS IT'S IMPOSSIBLE TO SERVE EVERY SINGLE CUSTOMER AS WE DID IN PREVIOUS YEARS SAYS PETER THONIS AN IBM SPOKESMAN WITH IBM'S WORK FORCE DOWN TO 255000 FROM 406000 IN 1986 WE'RE NOW MORE WILLING TO SELL THROUGH INTERMEDIARIES HE ADDS HE CONCEDES THAT SOME SMALL CUSTOMERS ARE PROBABLY UPSET IN BIGTIME ACCOUNTING WHERE MERGERS AND SLOW REVENUE GROWTH HAVE INTENSIFIED COSTCUTTING MANY SMALL CLIENTS ARE SO IRRITATED THEY ARE LEAVING SHIFTING TO REGIONAL AND LOCAL FIRMS IN THE PAST TWO YEARS THE BIG SIX ACCOUNTING FIRMS LOST 239 PUBLIC AUDIT CLIENTS TO LOCAL FIRMS WHILE GAINING ONLY 159 SUCH CLIENTS ACCORDING TO A STUDY BY STRAFFORD PUBLICATIONS INC WHICH PUBLISHES THE PUBLIC ACCOUNTING REPORT NEWSLETTER IN THE EARLY 1980S WHEN THE ACCOUNTING BUSINESS WAS BOOMING THE BIG SIX WON MANY MORE CLIENTS AWAY FROM LOCAL FIRMS THAN THEY LOST ACCOUNTANTS SAY TODAY THE PRESSURE ON BIG SIX PARTNERS TO BRING IN BIG BUCKS IS ENORMOUS SAYS MARK CARR EDITOR OF THE NEWSLETTER PARTNERS CAN'T BE AS RESPONSIVE TO SMALL BUSINESS WHICH PAYS SMALL FEES AS THEY ONCE WERE ANNUAL AUDIT FEES TYPICALLY RANGE FROM 5000 TO 50000 FOR SMALL COMPANIES BUT FROM 1 MILLION TO 10 MILLION EVEN MORE FOR BIG ONES WE HAVE TO CONTINUE TO EVALUATE CLIENTS TO SEE WHICH ONES IT MAKES SENSE FOR US TO STICK WITH AS WINNERS SAYS LARRY DAVIDSON AN ERNST & YOUNG PARTNER BIG ACCOUNTING FIRMS ALSO SAY THEY ARE WEEDING OUT SMALLCOMPANY AUDITS THAT RISK COSTLY MALPRACTICE LITIGATION SURVEYS OF 400 SMALLBUSINESS OWNERS BY CICCO & ASSOCIATES A MURRAYSVILLE PA CONSULTING FIRM SHOW THEIR DISILLUSIONMENT WITH THE BIG FIRMS IN LAST YEAR'S STUDY BIG ACCOUNTING FIRMS RANKED NINTH OF 12 INDUSTRY GROUPS IN RESPONSIVENESS TO SMALLBUSINESS NEEDS SIX YEARS AGO THEY RANKED FIRST ONLY 33 OF THE OWNERS LAST YEAR CONSIDERED ANY BIG ACCOUNTING FIRMS RESPONSIVE TO SMALLBUSINESS NEEDS DOWN SHARPLY FROM 45 IN THE 1988 SURVEY OUR SURVEYS SHOW THAT AFTER MERGERS AND STAFF REDUCTIONS AT THEIR FIRMS ACCOUNTANTS' ATTENTION WAS DIVERTED TO INTERNAL COMPANY POLITICS AND SMALLBUSINESS CLIENTS SUFFER BECAUSE THE BIG ACCOUNTING FIRMS DARE NOT IGNORE THEIR BIGGEST CUSTOMERS PAYING THE LARGEST FEES SAYS JOHN CICCO PRESIDENT OF THE CONSULTING FIRM MANY SMALLER CLIENTS FEEL ESPECIALLY SHORTCHANGED IN THE PERSONNEL ASSIGNED TO THEM MAJOR ACCOUNTING FIRMS ARE SHIFTING SMALL CLIENTS AMONG EMPLOYEES SO OFTEN THAT THE PRACTICE IS KNOWN AS CHURN AND BURN SAYS JAY NISBERG A RICHFIELD CONN CONSULTANT TO ACCOUNTING FIRMS SUCH STAFF CHANGES CAUSED THE TERENCE CARDINAL COOKE HEALTH CARE CENTER IN NEW YORK TO FIRE KPMG PEAT MARWICK ITS AUDITOR FOR THREE YEARS LAST OCTOBER AND HIRE URBACH KAHN & WERLIN A 35PARTNER FIRM IN MANHATTAN IN OUR FIRST AUDIT WE WERE ABLE TO KEEP THE SAME STAFF FROM PEAT DURING THE ENTIRE YEAR SAYS DAVID ARDITT THE CENTER'S INTERIM CHIEF FINANCIAL OFFICER BUT IN RECENT YEARS ALL THREE AUDIT STAFF MEMBERS WERE CHANGED EVERY YEAR AND PEAT STAFF MEMBERS WHO DID THE ANNUAL AUDIT WERE DIFFERENT FROM THOSE WHO REVIEWED OUR QUARTERLY FIGURES DURING THE YEAR IN ONE INSTANCE A JUNIOR AUDITOR FROM PEAT WHO HAD NEVER WORKED ON MEDICAID FORMS TOOK 10 HOURS TO LEARN HOW TO FILL OUT AN 80PAGE FORM FOR LONGTERM CARE MR ARDITT SAYS WHEREAS THE PREVIOUS STAFFER WHO HAD WORKED WITH THE FORMS DID THE JOB WITHIN AN HOUR TAKING THE EXTRA TIME TO TRAIN AUDITORS UNFAMILIAR WITH THE FORMS HELPED RAISE AUDIT COSTS 20 HE ESTIMATES MARIANNE TREGLIA CHIEF FINANCIAL OFFICER AT THE CENTER UNTIL LAST DECEMBER SAYS THAT WHEN PEAT WAS FIRST HIRED ITS STAFF WOULD WORK A FULL DAY AND TREAT US LIKE MEMBERS OF THE FAMILY BUT LAST YEAR SHE SAYS NEW PEAT STAFFERS WHO WERE VERY YOUNG AND INEXPERIENCED TREATED THE CENTER'S PEOPLE LIKE WE WERE SERVANTS SHE ADDS THEY'D COME IN LATE AND LEAVE EARLY DISAPPEAR IN THE MIDDLE OF THE DAY AND ASK THAT MEDICAL RECORDS AT THE OTHER END OF THE BUILDING BE BROUGHT TO THEM WHEN THEY SHOULD HAVE GONE AND FETCHED THEM THEMSELVES PATRICK E DONNELLAN JR A FORMER PEAT PARTNER WHO HEADED THE CENTER'S AUDIT SAYS STAFF BACKUP FROM PEAT WAS SUFFICIENT HE DECLINES COMMENT ON THE OTHER COMPLAINTS ASKED WHETHER RECENT STAFF CUTBACKS HAVE HURT PEAT'S RELATIONSHIPS WITH SOME CLIENTS JON MADONNA PEAT'S CHAIRMAN SAYS THAT THOSE WHO WERE LET GO WERE LESS PRODUCTIVE AND THAT THOSE WHO REMAIN WORK HARD TO GIVE ALL CLIENTS TOP SERVICE WE DO NOT DIFFERENTIATE BETWEEN SMALL AND BIG CLIENTS AND ATTEMPT TO GIVE EVERY COMPANY WE SERVE TOP PRIORITY HE SAYS BUT SOME SMALL CLIENTS THINK THAT ONLY AUDITORS' BILLING DEPARTMENTS ARE GIVING THEM TOP PRIORITY THESE DAYS INDEED RISING FEES ARE HELPING DRIVE SMALL CLIENTS AWAY FROM BIG SIX FIRMS ESPECIALLY IF CLIENTS FEEL THEY ARE GETTING POOR SERVICE PETER OTTMAR PRESIDENT OF ATTLEBORO RADIO ASSOCIATION INC A RADIOSTATION AND REALESTATE COMPANY IN ATTLEBORO MASS DROPPED DELOITTE & TOUCHE'S BOSTON OFFICE THREE YEARS AGO DELOITTE HAD INCREASED ITS ANNUAL AUDIT FEE TO NEARLY 50000 FROM 38000 THE NEW AUDITOR KAHN LITWIN CHARGES ONLY 28000 MR OTTMAR SAYS ANOTHER REASON ATTLEBORO RADIO FIRED DELOITTE WAS THAT IT SHARPLY DOWNGRADED ITS SERVICE TO US MR OTTMAR SAYS HE SAYS DELOITTE'S FAILURE TO GIVE PROPER ADVICE ON DEPRECIATION COST INVESTORS IN THE COMPANY UP TO 50000 IN EXTRA TAXES WE'RE A SUB S CORPORATION SO THAT TAX SAVINGS PASS DIRECTLY TO THE OWNERS HE NOTES SUB S CORPORATIONS DON'T PAY TAXES AND PASS PROFITS DIRECTLY TO OWNERS WHO ARE TAXED LIKE PARTNERS BUT BECAUSE OF POOR ADVICE FROM DELOITTE WE WEREN'T TAKING ENOUGH DEPRECIATION WHICH REDUCES OUR TAXES ON OUR ELECTRICAL EQUIPMENT CABLE HE ASSERTS WE CALLED THEM FOUR TIMES ON THIS ISSUE AND THEY IGNORED US LIKE WE WERE INVISIBLE THEIR LACK OF KNOWLEDGE COST US TAX MONEY D GIBSON HAMMOND JR THE DELOITTE PARTNER WHO HEADED THE AUDIT DECLINES COMMENT ON MR OTTMAR'S CRITICISMS IN SOME CASES FEES ARE PROMPTING CLIENTS TO ABANDON RELATIONSHIPS WITH BIG FIRMS THAT STRETCH BACK DECADES AFTER 30 YEARS WITH ERNST & YOUNG WHICH HAS 1800 PARTNERS SOUTHERN MICHIGAN BANCORP INC OF COLDWATER MICH SWITCHED LAST YEAR TO CROWE CHIZEK & CO WHICH HAS 80 PARTNERS THE BANK CUT ITS ANNUAL AUDIT AND TAXPREPARATION FEES BY 40 TO 30000 SAYS JULIE REDMOND THE BANK HOLDING COMPANY'S CONTROLLER LIKE ATTLEBORO RADIO THE BANKING COMPANY SAYS MONEY WASN'T THE ONLY ISSUE A DECADE AGO BEFORE ACCOUNTING FIRMS BEGAN TO CUT STAFF ERNST WAS VERY RESPONSIVE AND ITS STAFF WOULD REMAIN ON THE ACCOUNT LONGER MS REDMOND SAYS BUT IN RECENT YEARS THE ERNST & YOUNG STAFF BELOW MANAGER WOULD CHANGE EVERY YEAR IT WAS VERY FRUSTRATING TO DEAL WITH LOWERLEVEL STAFF WHO WERE REPLACED SO OFTEN MS REDMOND SAYS SUCH TREATMENT MADE US WANT TO ASK WHY ARE THE AUDITORS HAVING SO MUCH TURNOVER' SHE SAYS THAT WHEN SHE ASKED ERNST & YOUNG ABOUT NEW ACCOUNTING RULES IT TOOK TWO TO THREE DAYS FOR THE FIRM TO GET THE ANSWER FROM ITS EXPERTS AT THE HOME OFFICE BUT WHEN SHE ASKED CROWE CHIZEK ABOUT A NEW ACCOUNTING RULE ON RETIREMENT BENEFITS RECENTLY THE FIRM'S TOP EXPERT ON THE RULE CONTACTED THE BANK IMMEDIATELY SHE SAYS WHEN YOU'RE CLOSING BOOKS AT THE END OF THE MONTH AN EXTRA DAY WASTED IS VERY CRITICAL SHE ADDS ROBERT JANSEN A PARTNER AT ERNST & YOUNG'S KALAMAZOO MICH OFFICE WHICH HAD SERVICED THE BANK PRIOR TO ITS SWITCH SAYS WE VALUED OUR RELATIONSHIP WITH THE BANK AND WERE DISAPPOINTED THAT THEY LEFT US HE DECLINES FURTHER COMMENT TODAY'S COMPLAINTS OF NEGLECT REPRESENT A SHARP CHANGE IN THE EARLY AND MIDDLE 1980S MAJOR ACCOUNTING FIRMS EAGERLY SOUGHT OUT SMALL CLIENTS ARTHUR YOUNG BEGAN OFFERING STARTUP COMPANIES A BROAD ARRAY OF AUDITING TAX AND CONSULTING SERVICES USUALLY AVAILABLE ONLY TO BIG COMPANIES IN 1986 IT BEGAN HONORING A SMALLCOMPANY ENTREPRENEUR OF THE YEAR AT A GLITZY ANNUAL PARTY SOME MAJOR ACCOUNTING FIRMS STILL EMPHASIZE THEIR EFFORTS TO SERVE SMALL COMPANIES EVEN SETTING UP SEPARATE DEPARTMENTS TO DO SO BUT MANY IN THE INDUSTRY SAY A BIG CHANGE IN THE ECONOMICS OF ACCOUNTING MAKES IT HARDER EVERY YEAR FOR MAJOR FIRMS TO OFFER ANYTHING LIKE EQUAL SERVICE TO BOTH LARGE AND SMALL CLIENTS IN BOTH 1992 AND 1993 THE BIG SIX'S US REVENUE GREW ONLY 4 YEARTOYEAR LESS THAN HALF THE FIRMS' GROWTH RATE IN THE EARLY 1980S SAYS ARTHUR BOWMAN EDITOR OF BOWMAN'S ACCOUNTING REPORT A MONTHLY NEWSLETTER IN CONTRAST MANY SMALL FIRMS ARE POSTING SHARP GAINS OUR REVENUES ROSE 20 OR MORE IN BOTH 1993 AND 1992 SAYS LAWRENCE KAHN A PARTNER IN KAHN LITWIN AND THE FIRM INCREASED ITS AUDIT STAFF TO SIX FROM FOUR A BIG FACTOR IS OVERHEAD SMALL FIRMS DON'T HAVE HUGE NATIONAL OFFICE EXPENSES MOREOVER THEIR PARTNERS GENERALLY EARN FROM A THIRD TO 40 LESS THAN DO BIG SIX PARTNERS WHO AVERAGE MORE THAN 250000 ANNUALLY MR BOWMAN ESTIMATES THE BIG FIRMS ARE RESPONDING TO SLOWER GROWTH AND PROFIT PRESSURES BY CUTTING STAFF REVERSING THE GROWTH OF EARLIER YEARS THEIR TOTAL AUDIT STAFF DROPPED 17 FROM 1988 TO 1992 THE LATEST YEAR FOR WHICH FIGURES ARE AVAILABLE THE PUBLIC ACCOUNTING REPORT SAYS THE FIRMS ALSO HAVE CUT THE NUMBER OF PARTNERS THE EXPERIENCED PEOPLE WHO ARE SUPPOSED TO GUIDE YOUNGER STAFFERS PEAT MARWICK ERNST & YOUNG DELOITTE & TOUCHE AND COOPERS & LYBRAND HAVE REDUCED THEIR PARTNER RANKS BY 8 TO 14 IN SOME CASES MERGERS HASTENED THE PROCESS PRICE WATERHOUSE HAS MADE SELECTIVE PERSONNEL CUTS AND THE NUMBER OF ARTHUR ANDERSEN'S CERTIFIED PUBLIC ACCOUNTANTS HAS REMAINED STATIC SINCE 1982 MR NISBERG THE CONSULTANT SAYS BIG FIRMS WILL STAY LEAN AND PARTNERS WILL BE STRETCHED IN SO MANY DIRECTIONS THAT THEY CAN'T AFFORD TO DEVELOP RAPPORT WITH CLIENTS THE PARTNERS MUST BE HUSTLING FOR BIG CLIENTS WITH BIG FEES ALL THE TIME FREDERICK NYDEGGER A FORMER PEAT MARWICK PARTNER WHO LOST HIS JOB IN A 1991 PURGE OF PARTNERS SAYS IN THE GOOD OLD DAYS YOU COULD TAKE SMALLBUSINESS OWNERS TO DINNER AND DISCUSS THEIR PROBLEMS WITHOUT WORRYING ABOUT CHARGEABLE HOURS NOW PEAT PARTNERS TELL ME THAT CHARGEABLE TIME WITH BIG CLIENTS IS NO 1 ON ITS HIT PARADE HE SAYS THE CHANGE IS A BIG REASON THAT MOST OF HIS SMALLBUSINESS CLIENTS AT PEAT ARE NO LONGER THERE 9404210175 940421 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN TO OVERCOME ITS REPUTATION FOR DISREGARDING INTELLECTUALPROPERTY RIGHTS CHINA CRACKED DOWN ON COMPACTDISK PIRACY POLICE RAIDED 400 MUSIC STORES IN FIVE SOUTHERN CITIES WHERE PIRATED CDS HAVE DRIVEN MOST LEGITIMATE PRODUCTS FROM THE MARKET IN GUANGZHOU ALONE AUTHORITIES SEIZED 56000 UNAUTHORIZED CDS CASSETTE TAPES AND VIDEO LASER DISKS CHINA SAID CLANDESTINE PRODUCERS TURN OUT 100 MILLION DISKS A YEAR WHILE DOMESTIC DEMAND TOTALS JUST FIVE MILLION ANNUALLY IT ORDERED THE RAIDS THREE WEEKS AFTER A MUSICINDUSTRY GROUP SAID CHINA WAS EXPORTING TENS OF MILLIONS OF PIRATED CDS AND THREATENING THE SECTOR GLOBALLY CHINA HAS MOVED TO STRENGTHEN LEGAL PROTECTION OF INTELLECTUAL PROPERTY AND CREATED SPECIAL COURTS FOR THESE CASES IN THE PAST TWO YEARS THE US IN DECEMBER WARNED CHINA IT COULD FACE TRADE SANCTIONS FOR WIDESPREAD COPYRIGHT TRADEMARK AND PATENT VIOLATIONS INCLUDING CD PIRACY CHINA PLANS TO TIGHTEN IMPORT AND EXPORT CONTROLS ON CDS BUT PENALTIES OF SMALL FINES HAVEN'T DETERRED VIOLATORS GERMANS TOPPLED THE FRENCH FROM THEIR LONGTIME PERCH AS THE WORLD'S LEADING CONSUMERS OF ALCOHOLIC BEVERAGES ON A PERCAPITA BASIS ACCORDING TO A STUDY BY THE GERMAN FEDERAL HEALTH OFFICE ON AVERAGE EACH GERMAN DRINKS THE EQUIVALENT OF 121 LITERS OF PURE ALCOHOL EACH YEAR TRIPLE THE AMOUNT CONSUMED IN 1950 THE TYPICAL GERMAN DRINKS 140 LITERS OF BEER A YEAR 27 LITERS OF WINE AND 10 LITERS OF OTHER ALCOHOLIC BEVERAGES A USMEXICAN ACCORD COULD LEAD TO US PARTICIPATION IN 100 MUNICIPAL WASTEWATERTREATMENT PLANTS IN MEXICO THE DEAL SIGNED BY THE US EXPORTIMPORT BANK AND MEXICO'S BANCO NACIONAL DE OBRAS Y SERVICIOS PUBLICOS KNOWN AS BANOBRAS REMOVES MEXICAN BARRIERS TO US EXPORTS OF WASTEWATER EQUIPMENT IT ALLOWS THE EXIM BANK TO FINANCE THESE SHIPMENTS WHICH COULD TOTAL 500 MILLION IN THE NEXT FIVE YEARS CITIES WILL PICK PRIVATE COMPANIES TO BUILD AND OPERATE FACILITIES AND TRANSFER THEM TO THE MUNICIPALITIES THE DEAL ALSO WILL HELP MEXICO MEET ENVIRONMENTAL STANDARDS OF THE NORTH AMERICAN FREE TRADE AGREEMENT ECUADOR SCHEDULED FOR JULY 24 A NATIONAL REFERENDUM ON PROPOSALS THAT INCLUDE PROVIDING FOR PRESIDENTIAL REELECTION AND FORMING A BICAMERAL CONGRESS THE 1978 CONSTITUTION LIMITS THE PRESIDENCY TO A SINGLE FOURYEAR TERM AND CONGRESS HAS ONE CHAMBER WITH 77 REPRESENTATIVES OTHER REFERENDUM ISSUES INCLUDE WHETHER VOTING SHOULD REMAIN MANDATORY AND WHETHER TO DOUBLE LEGISLATIVE TERMS TO FOUR YEARS ECUADOR'S NEXT GENERAL ELECTION IS TO BE HELD IN 1996 THE GERMAN STATEOWNED RAILROAD SYSTEM DEUTSCHE BAHN AG INTENDS TO ELIMINATE MORE THAN 100000 JOBS OR ABOUT A THIRD OF ITS WORK FORCE BY 1998 THE RAILWAY EMPLOYEES' UNION SAID OF THE TOTAL CUTS 35000 ARE TO BE MADE THIS YEAR INCLUDING 25000 BY NOT FILLING ANY POSTS THAT BECOME VACANT THE UNION CALLED FOR TALKS WITH DEUTSCHE BAHN ON AN ACCORD TO PROVIDE JOB SECURITY FOR ITS MEMBERS THE WORLD BANK AGREED TO LEND THE PHILIPPINES 40 MILLION TO HELP CONVERT THE FORMER US NAVY BASE AT SUBIC BAY INTO A FREE PORT AND INDUSTRIAL COMPLEX PART OF THE CASH WILL PAY FOR ENVIRONMENTAL STUDIES INCLUDING HOW TO PROTECT THE BAY FROM POLLUTION THE JAPAN BOARD OF TOURISM ESTIMATED 46000 JAPANESE WILL VISIT THE US DURING GOLDEN WEEK HOLIDAYS THIS MONTH A 7 INCREASE FROM A YEAR EARLIER DESPITE PUBLICITY ABOUT JAPANESE NATIONALS BEING HURT OR KILLED BY CRIMINALS IN THE US PORTRAYED AS A GUN SOCIETY 9404210174 940421 INTERNATIONAL BARCLAYS TO REVAMP BUSINESS STRUCTURE FORMING FIVE GROUPS LONDON BARCLAYS PLC IS TO RESHAPE ITS MANAGEMENT STRUCTURE IN ORDER TO IMPROVE INTERNAL CONTROLS AND GET CLOSER TO ITS CUSTOMERS IN THE FIRST SIGNIFICANT ORGANIZATIONAL MOVE BY ITS NEW CHIEF EXECUTIVE MARTIN TAYLOR MR TAYLOR SAID THE CHANGES REFLECTED ORDINARY MANAGEMENT HOUSEKEEPING IN A DRIVE TO IMPROVE EFFICIENCY AND PROFITABILITY THOUGH MR TAYLOR DENIED THAT THE CHANGES WERE IN ANY WAY EARTHSHATTERING THEY MARK A REVERSAL OF BARCLAYS' MUCHVAUNTED REORGANIZATION THREE YEARS AGO INTO THREE MAIN OPERATING DIVISIONS BARCLAYS' ACTIVITIES WILL BE DIVIDED INTO FIVE MAIN GROUPS OF BUSINESSES UK RETAIL BANKING UK CORPORATE BANKING INTERNATIONAL INVESTMENT BANKING CONTINENTAL EUROPEAN RETAIL BANKING AND PRIVATE BANKING PLUS RETAIL BANKING IN AFRICA AND THE CARIBBEAN THE MOST SIGNIFICANT CHANGE IS THE BREAKUP OF THE FORMERLY MONOLITHIC BANKING DIVISION WITH THE SEPARATION OF BARCLAY'S LARGECORPORATE LENDING BUSINESS IN THE UK FROM ITS DOMESTIC RETAIL BANKING OPERATION THE REORGANIZATION ALSO SEES THE DISAPPEARANCE OF THE SERVICE BUSINESSES DIVISION A DISPARATE COLLECTION OF BUSINESSES BASED ON COMPUTER SERVICES AND COMMUNICATIONS TECHNOLOGY UNDER THE NEW STRUCTURE UK CORPORATE BANKING OPERATIONS ARE TO BE RUN IN CLOSE COORDINATION WITH SOME OF THE ACTIVITIES OF BARCLAYS DE ZOETE WEDD THE BANK'S INVESTMENTBANKING ARM SIR PETER MIDDLETON THE DEPUTY CHAIRMAN OF BARCLAYS AND CHAIRMAN OF BZW WILL TAKE ON THE ADDITIONAL ROLE OF CHAIRMAN OF A NEW GROUP OF BUSINESSES IN ADDITION TO UK CORPORATE BANKING THIS GROUP OF BUSINESSES INCLUDES TRADE FINANCE BIGTICKET LEASING AND RELATIONS WITH FINANCIAL INSTITUTIONS AS WELL AS CUSTODY AND ELECTRONIC CORPORATE BANKING 9404210173 940421 MARKETING & MEDIA LIVING BOOKS WINS MULTIMEDIA RIGHTS TO DR SEUSS WORKS BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL IN ANOTHER MOVE TO PUSH CHILDREN'S BOOKS INTO THE MULTIMEDIA FUTURE THE LIVING BOOKS JOINT VENTURE OF RANDOM HOUSE INC AND BRODERBUND SOFTWARE INC SAID IT ACQUIRED WORLDWIDE MULTIMEDIA RIGHTS TO THE BOOKS WRITTEN AND ILLUSTRATED BY THE LATE THEODORE GEISEL BETTER KNOWN AS DR SEUSS EARLIER THIS MONTH LIVING BOOKS ACQUIRED WORLD MULTIMEDIA RIGHTS TO THE BERENSTAIN BEARS GET IN A FIGHT AND OTHER TITLES ABOUT THE FICTIONAL BEAR FAMILY BUT THE DR SEUSS TRANSACTION IS BELIEVED TO BE THE LARGEST DEAL OF ITS KIND TO DATE TERMS WEREN'T DISCLOSED BUT THE RIGHTS INCLUDE VIRTUALLY ALL 48 BOOKS WRITTEN AND ILLUSTRATED BY DR SEUSS SUCH AS THE CAT IN THE HAT TOGETHER HIS BOOKS HAVE SOLD MORE THAN 200 MILLION COPIES AND HAVE BEEN TRANSLATED INTO 20 LANGUAGES RANDOM HOUSE HAS PUBLISHED THE DR SEUSS BOOKS SINCE 1957 BUT STILL HAD TO COMPETE FOR THE MULTIMEDIA RIGHTS WITH SEVERAL OTHER COMPANIES INCLUDING PARAMOUNT COMMUNICATIONS INC AND MICROSOFT CORP JEFF BERG HEAD OF THE INTERNATIONAL CREATIVE MANAGEMENT TALENT AGENCY REPRESENTED THE SELLER DR SEUSS ENTERPRISES LP WHICH OWNS THE RIGHTS TO THE DR SEUSS WORKS MR BERG PREDICTED THAT MULTIMEDIA RIGHTS TO PUBLISHED WORKS WILL BECOME INCREASINGLY PROFITABLE TO CREATORS ADDING WE SEE THIS AS A WHOLE NEW AVENUE OF RIGHTS THAT CAN BE EXPLOITED ALBERTO VITALE CHAIRMAN OF RANDOM HOUSE SAID THE COMPANY EXPECTS TO PUT ITS FIRST TITLE OUT ON CDROM INTERACTIVE COMPUTER PROGRAMS SOMETIME NEXT YEAR RANDOM HOUSE IS A UNIT OF CLOSELY HELD ADVANCE PUBLICATIONS INC BRODERBUND HAS AGREED TO BE ACQUIRED BY ELECTRONIC ARTS INC OF SAN MATEO CALIF IN A STOCK SWAP VALUED AT 400 MILLION THE TRANSACTION IS EXPECTED TO CLOSE IN MAY THE LIVING BOOKS JOINT VENTURE IS THE LEADING PRODUCER OF CHILDREN'S BOOKS IN MULTIMEDIA PUBLISHING SEPARATELY LIVING BOOKS ANNOUNCED THE APPOINTMENT OF JEFFREY SCHON 41 YEARS OLD AS CHIEF EXECUTIVE OFFICER AND PRESIDENT HE WAS PREVIOUSLY VICE PRESIDENT OF PRODUCTION FOR HEARST CORP'S ENTERTAINMENTDISTRIBUTION UNIT WHICH MAKES ANIMATED TV SERIES 9404210172 940421 WHO'S NEWS SOFTPOINT INC SOFTPOINT INC RENO NEV RONALD G STOECKLEIN 48 YEARS OLD WAS NAMED PRESIDENT CHIEF EXECUTIVE AND A DIRECTOR OF THIS SOFTWARE CONCERN MR STOECKLEIN WHO WAS A PRIVATE CONSULTANT SUCCEEDS ROBERT H COSBY 64 WHO RESIGNED 9404210171 940421 INTERNATIONAL VOLVO ANNOUNCES ITS PLANS TO SELL NONCORE INTERESTS BY STEPHEN D MOORE STAFF REPORTER OF THE WALL STREET JOURNAL THE ASSETS VOLVO IS PUTTING ON THE BLOCK RANGE FROM LARGE MINORITY STAKES IN DRUGMAKER PHARMACIA AB AND SWEDISH HOLDING COMPANY AB CARDO TO CONSUMER GOODS UNIT BRANDED CONSUMER PRODUCTS AB OFFICIALS ESTIMATED THAT THE SALES LIST CURRENTLY BOASTS A COMBINED MARKET VALUE OF ROUGHLY 40 BILLION SWEDISH KRONOR 504 BILLION SPEAKING AT THE COMPANY'S ANNUAL MEETING CHIEF EXECUTIVE SOEREN GYLL SAID THE DIVESTMENT PROGRAM WILL PROCEED AT A PACE OFFERING VOLVO THE BEST POSSIBLE RETURN HE DECLINED TO OFFER FURTHER DETAILS BUT PREDICTED VOLVO'S TRANSFORMATION TO AN EXCLUSIVELY TRANSPORT VEHICLE GROUP CAN BE COMPLETED DURING 1996 PROCEEDS FROM THE DIVESTMENT SPREE WILL BE CHANNELED BACK INTO AUTOMOTIVE OPERATIONS MR GYLL SAID BUT HE ACKNOWLEDGED THE BACKTOBASICS STRATEGY WILL REQUIRE FINANCIAL RESERVES SUFFICIENT TO CARRY THE GROUP THROUGH DIFFICULT TIMES INCLUDING CYCLICAL INDUSTRY DOWNTURNS THE VOLVO CHIEF QUANTIFIED THE NECESSARY FINANCIAL MUSCLE AS A MINIMUM 50 RATIO OF SHAREHOLDERS EQUITY AND MINORITY INTERESTS IN RELATION TO THE PARENT GROUP'S TOTAL ASSETS AT YEAR END THAT RATIO WAS ONLY 251 REACHING THE BOARD'S NEW TARGET WOULD REQUIRE AN EQUITY INJECTION OF ALMOST 34 BILLION KRONOR COMPANY OFFICIALS ESTIMATED BUT THE ACTUAL FIGURE PROBABLY WILL BE LESS THAN 20 BILLION KRONOR SINCE THE ASSET DISPOSAL PROGRAM SHOULD SHRINK VOLVO'S TOTAL ASSETS TO ABOUT 100 BILLION KRONOR FROM 1345 BILLION KRONOR AT YEAR END THESE OFFICIALS ADDED AT WEDNESDAY'S MEETING SHAREHOLDERS APPROVED PLANS FOR A SEVEN BILLION KRONOR BID FOR THE 263 VOLVO DOESN'T ALREADY OWN IN THE BCP UNIT THE BCP OFFER WAS ORIGINALLY LAUNCHED LAST YEAR AS PART OF THE FAILED MARRIAGE WITH FRENCH AUTO MAKER RENAULT SA AND BECAME A SOURCE OF CONTROVERSY AMONG THE NEW BOARD BECAUSE A SURGE IN VOLVO'S SHARE PRICE IN RECENT MONTHS BALLOONED THE BID'S VALUE VOLVO PROPOSES PAYMENT IN ITS OWN STOCK TO BCP HOLDERS AND THOSE NEWLY ISSUED SHARES WILL DILUTE VOLVO'S EQUITY OUTSTANDING BY MORE THAN 10 DESPITE THE HIGHER PRICE GAINING FULL CONTROL OF BCP WILL FACILITATE DIVESTMENT PLANS OFFICIALS SUGGESTED 9404210170 940421 ITT'S FIRSTPERIOD EARNINGS ROSE 25 SHOWING IMPROVEMENT IN ALL DIVISIONS NEW YORK ITT CORP SAID FIRSTQUARTER NET INCOME ROSE 25 REFLECTING GAINS IN ALL OF ITS BUSINESS SEGMENTS AND OPERATING RESULTS THAT EXCEEDED ANALYSTS' EXPECTATIONS NET INCOME ROSE TO 219 MILLION OR 177 A SHARE FROM 175 MILLION OR 137 A SHARE A YEAR EARLIER THE YEAREARLIER FIGURES ARE RESTATED TO REFLECT THE FORESTPRODUCTS BUSINESS WHICH HAS BEEN SPUN OFF AS A DISCONTINUED OPERATION REVENUE ROSE 3 TO 555 BILLION FROM 539 BILLION RAND V ARASKOG CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE SAID RESULTS REFLECT THE IMPROVED US ECONOMY AS WELL AS CONTINUED COSTIMPROVEMENT PROGRAMS IN THE COMPANY HE CALLED THE FIRSTQUARTER PERFORMANCE CAUSE FOR OPTIMISM IN 1994 ALTHOUGH HE ADDED THAT THE SECOND QUARTER PRESENTS A NUMBER OF CHALLENGES A SPOKESMAN NOTED THAT THE YEAREARLIER SECOND QUARTER INCLUDED 20 CENTS A SHARE IN EARNINGS FROM CAPITAL GAINS AND 20 CENTS A SHARE FROM THE SPUN OFF RAYONIER UNIT IN THE LATEST QUARTER OPERATING PROFIT ROSE 31 TO 206 MILLION FROM 157 MILLION ITT SAID EXCLUDING ONETIME ITEMS PROFIT WAS 158 A SHARE EXCEEDING ANALYSTS' ESTIMATES OF 130 TO 139 A SHARE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING ITT SHARES CLOSED AT 87125 UP 1 THE FINANCIAL AND BUSINESSSERVICES GROUP LED BY ITT HARTFORD INSURANCE HAD OPERATING PROFIT OF 237 MILLION UP 3 FROM 231 MILLION A YEAR EARLIER INSURANCE EARNINGS ROSE 22 TO 190 MILLION FROM 156 MILLION DESPITE THE IMPACT OF THE LOS ANGELES EARTHQUAKE AND THE SEVERE WINTER WEATHER CATASTROPHE LOSSES WHICH EXCEEDED EXPECTATIONS TOTALED 40 MILLION AFTER TAXES OR 31 CENTS A SHARE PORTFOLIO GAINS PRIMARILY AT ITT HARTFORD TOTALED 35 MILLION OR 27 CENTS A SHARE BUT OPERATING PROFIT FOR THE COMMERCIAL AND CONSUMERLENDING BUSINESS FELL 38 TO 44 MILLION FROM 71 MILLION MANUFACTURED PRODUCTS OPERATING PROFIT ALMOST DOUBLED TO 88 MILLION FROM 45 MILLION WITH THE AUTOMOTIVE PORTION RISING TO 60 MILLION FROM 32 MILLION ITT SHERATON HOTELS INCOME ROSE 81 TO 29 MILLION FROM 16 MILLION AIDED BY CONTRIBUTIONS FROM GAMBLING OPERATIONS ITT SAID RESULTS AT THE SHERATON DESERT INN IN LAS VEGAS EXCEEDED EXPECTATIONS DURING ITS FIRST FULL QUARTER UNDER ITT SHERATON 9404210169 940421 INTERNATIONAL RUSSIAN HINTERLAND FEELS THE LURE OF ASIA MOSCOW'S WESTERN FOCUS RETARDS EAST'S DEVELOPMENT BY MARK M NELSON STAFF REPORTER OF THE WALL STREET JOURNAL KHABOROVSK RUSSIA HERE IN THE RUSSIAN FAR EAST THE ASIAN ECONOMIC MIRACLE LOOMS ON NEARLY EVERY HORIZON THE REGION'S DYNAMIC NEIGHBORS CHINA SOUTH KOREA AND JAPAN PROVIDE A TANTALIZING MODEL OF THE ECONOMIC SUCCESS RUSSIA SO DESPERATELY NEEDS BUT FOR THIS BROKENDOWN REMOTE PART OF THE WORLD WHICH IS MORE ISOLATED THAN EVER FROM RUSSIA'S EUROPEAN CORE ASIA IS ALSO A SOURCE OF WORRY CHINA WITH ITS 12 BILLION PEOPLE AND RELENTLESS ECONOMIC GROWTH COVETS THE REGION'S WIDEOPEN SPACES ITS ABUNDANT RAW MATERIALS AND ENERGY SUPPLIES JAPAN AND SOUTH KOREA ALSO HUNGER AFTER ITS CHEAP RESOURCES AND YET RUSSIA'S INFLUENCE OVER EVENTS IN ASIA IS WEAKER THAN AT ANY TIME IN THE PAST HALF CENTURY WE'RE TRYING TO LEARN TO DANCE WITH THE ASIAN TIGER WITHOUT GETTING SWALLOWED UP SAYS ALEXANDER KHARITONOV A MANAGER OF ENKAI BUSINESS CENTER IN VLADIVOSTOK AND RUSSIA IS NOT A STRONG DANCING PARTNER IF IT IS A WEAK PARTNER IT IS ALSO A DISTRACTED ONE EVEN AS THE WORLD'S CENTERS OF ECONOMIC AND POLITICAL POWER SHIFT FROM THE ATLANTIC TOWARD THE PACIFIC MOSCOW CONTINUES TO FOCUS ITS ENERGIES ON THE WEST IT HAS SPENT ENORMOUS POLITICAL CAPITAL TRYING TO GET CLOSE TO WESTERN FINANCIAL INSTITUTIONS SUCH AS THE GROUP OF SEVEN AND THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT BUT IT HAS DONE LITTLE TO JOIN THE ASIAN DEVELOPMENT BANK OR OTHER ASIAN INSTITUTIONS PRESIDENT BORIS YELTSIN HAS TAKEN STEPS TO IMPROVE RUSSIA'S TIES WITH CHINA AND SOUTH KOREA BUT RUSSIA IS STILL IN A STANDOFF WITH JAPAN OVER THE DISPUTED KURIL ISLANDS GERALD SEGAL A SPECIALIST ON ASIA FOR THE INTERNATIONAL INSTITUTE OF STRATEGIC STUDIES IN LONDON SAYS RUSSIAN ASIA DESERVES MORE ATTENTION THE STAKES ARE HUGE MR SEGAL SAYS THE QUESTION HERE IS NOT ONLY ABOUT ASIA'S ABILITY TO SUSTAIN ITS GROWTH BUT ABOUT HOW THE REGION WILL REACT TO A WEAK RUSSIA FOREIGN MINISTER ANDREI KOZYREV TALKS OF INTEGRATING THE FAR EAST INTO NORTHEAST ASIA BUT LOCALS ARE SKEPTICAL THERE IS NO INDICATION THEY'VE GIVEN MUCH THOUGHT TO THE ASIAN PART OF RUSSIA OR HAVE ANY IDEA ABOUT HOW TO DEVELOP IT SAYS TAMARA TROYAKOVA A SPECIALIST ON RUSSIAN AND ASIAN SECURITY IN VLADIVOSTOK DURING THE SOVIET ERA THE RUSSIAN FAR EAST WAS A VITAL ARTERY OF A GLOBAL SUPERPOWER THE PACIFIC FLEET THE SOVIETS' BIGGEST AND MOST IMPORTANT SEA FORCE WAS STATIONED IN VLADIVOSTOK A MYSTERIOUS AND FEARED CITY THAT WAS CLOSED TO OUTSIDERS BUT TODAY THE PACIFIC FLEET'S BOATS SIT RUSTING IN THE DOCKS A CURIOSITY FOR THE TOURISTS AND BUSINESSPEOPLE WHO ARE DRIBBLING INTO VLADIVOSTOK THE LOCAL ECONOMY IS IN TERRIBLE SHAPE AS WELL PART OF THE PROBLEM IS RUSSIA'S POLITICAL GRIDLOCK FEARING THAT OPENING THE FAR EAST TOO QUICKLY WILL LEAD TO A SEPARATIST MOVEMENT HERE MOSCOW HAS BEEN SLOW TO APPROVE REFORM PLANS IT ALSO KEEPS TIGHT REIN OVER THE REGION'S RAW MATERIALS ALLOWING ONLY A FRACTION TO BE EXPORTED WITHOUT LICENSES EVEN SETTING UP A JOINT VENTURE HERE HAS TO BE CLEARED BY FEDERAL BUREAUCRATS THESE REGULATIONS ARE VERY CUMBERSOME AND COSTLY SAYS VISHNU PRAKASH CONSUL GENERAL FOR INDIA IN VLADIVOSTOK THE AUTHORITIES IN MOSCOW ARE ONLY HURTING THEMSELVES PROJECTS SUCH AS THE NAKHODKA FREE ECONOMIC ZONE A PROPOSED INDUSTRIAL COMPLEX SPONSORED BY THE US AND SOUTH KOREA HAVE COLLAPSED IN DISPUTES WITH THE CENTRAL GOVERNMENT LOCAL LEADERS WANTED TO OFFER TAX INCENTIVES AND CUSTOMSDUTY REDUCTIONS IN EXCHANGE FOR THE DEVELOPMENT OF A LARGE INDUSTRIAL PARK FOR PRODUCING WOOD FISH TEXTILES AND GARMENTS MACHINERY AND ELECTRONICS PRODUCTS BUT THOUGH THE 70 MILLION PROJECT HAD ENTHUSIASTIC SUPPORT FROM POTENTIAL SPONSORS IN ASIA AND THE US CONSERVATIVES IN MOSCOW WERE OPPOSED TO GRANTING ANY SPECIAL TAX ADVANTAGES TO THE REGION ECONOMICALLY THIS PART OF RUSSIA CAN NOT BE TOTALLY CONTROLLED BY THE CENTRAL GOVERNMENT SAYS LEE BOOM SUN DIRECTOR OF THE KOREA TRADE PROMOTION CORP IN VLADIVOSTOK FOR NOW THEY ARE COLLECTING TAXES FROM THIS AREA TAKING RESOURCES FROM THIS AREA BUT GIVING IT VERY LITTLE FREEDOM THE CENTRAL GOVERNMENT SHOULD GIVE THIS PART OF THE COUNTRY MORE INDEPENDENT ECONOMIC RIGHTS EARLY IN THIS CENTURY THE RUSSIAN FAR EAST WAS ONE OF THE WORLD'S MELTING POTS BOTH KHABOROVSK AND VLADIVOSTOK WERE MORE CONSPICUOUSLY ASIAN CITIES THE LARGE VIBRANT CHINATOWN IN VLADIVOSTOK OCCUPIED ONETHIRD OF THE CITY CENTER AND KOREANS LIVED AND WORKED THROUGHOUT THE RUSSIAN FAR EAST BUT STALIN CLEARED OUT MOST OF THE KOREAN AND CHINESE PEOPLE AND IN 1937 ELIMINATED THE REGION'S EDUCATED ELITE THEY WERE REPLACED BY LOYALISTS WHO OVERSAW POLITICAL PRISONERS AND EXILES FROM RUSSIA AND UKRAINE LEAVING THE AREA SPARSELY POPULATED HIGHLY MILITARIZED AND SUBSERVIENT TO MOSCOW'S WILL GIVEN A CHANCE MANY CHINESE SAY THEY WOULD RESETTLE HERE AGAIN I WOULD LIKE TO LIVE HERE PERMANENTLY SAYS A 21YEAROLD CHINESE TRADER FROM THE NEARBY CHINESE CITY OF HARBIN WHO NOW SPEAKS RUSSIAN AND HAS TAKEN THE RUSSIAN NAME OF ANATOLY OLIYI BUT THE CONSERVATIVES AND NATIONALISTS THAT DOMINATE MOSCOW POLITICS DON'T WANT TO HEAR OF ANY OPENDOOR POLICY TOWARD ASIA THE LOCALS THEMSELVES ARE OPPOSED TO MORE CHINESE IMMIGRANTS WHO NUMBER AN ESTIMATED 200000 IN THE REGION BUT UNLESS THE REGION FINDS A BETTER WAY TO MAKE A LIVING FOR ITSELF THE RISK IS THAT IT WILL COME INTO RISING CONFLICT WITH THE EUROPEAN PART OF RUSSIA IF THAT HAPPENS MANY EXPERTS PREDICT AN AUTONOMY MOVEMENT WILL ARISE MUCH AS IT HAS IN OTHER PARTS OF THE RUSSIAN FEDERATION AND BECAUSE OF THE IMPORTANCE OF THIS REGION TO RUSSIA MANY FEAR A SEPARATIST MOVEMENT COULD BE THE BEGINNING OF A CIVIL CONFLICT VLADIVOSTOK IS RUSSIA'S ONLY MAJOR PORT THAT ISN'T FROZEN SOLID IN WINTER THE REGION PRODUCES 70 OF RUSSIA'S FISH AND CONTAINS HUGE PORTIONS OF THE COUNTRY'S TIMBER PRECIOUS METALS AND DIAMONDS 9404210168 940421 ROYAL DUTCH/SHELL BEGINS PULLING OIL FROM GULF'S DEPTHS BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON SHELL OIL CO SAID IT BEGAN PUMPING OIL AND NATURAL GAS FROM ITS AUGER FIELD IN THE GULF OF MEXICO A 12 BILLION DEVELOPMENT IN THE DEEPEST WATERS TO PRODUCE OIL IN US HISTORY THE GULF'S DEEP WATERS REMAIN ONE OF THE LAST DOMESTIC FRONTIERS THAT GEOLOGISTS THINK HOLD SIZABLE UNTAPPED OIL RESERVES BUT THE HIGH COST AND TECHNOLOGICAL HURDLES OF DEEPWATER PROJECTS HAVE KEPT THEM TO A MINIMUM EXCEPT FROM SHELL WHICH IS DEVELOPING A SIMILAR DEEPWATER GULF PROJECT CALLED MARS FOR ANOTHER 12 BILLION ALTHOUGH THERE HAVE BEEN LARGE DISCOVERIES IN THE GULF'S DEEP WATERS BY OTHER OIL COMPANIES THEY HAVE PUT DEVELOPMENT PLANS ON HOLD BECAUSE OF TODAY'S LOW CRUDE PRICES AND THE DAUNTING NEW TECHNOLOGY NEEDED TO PLUMB THESE DEPTHS LOCATED BENEATH 2860 FEET OF WATER ABOUT 214 MILES SOUTHWEST OF NEW ORLEANS AUGER IS PRODUCING ABOUT 2200 BARRELS OF OIL AND 37 MILLION CUBIC FEET OF GAS DAILY SHELL SAID NAMED BY SHELL GEOLOGISTS WHO USED TOOLS AS CODE NAMES FOR THEIR WILDCAT PROSPECTS AUGER IS EXPECTED TO HIT PEAK DAILY PRODUCTION OF 46000 BARRELS OF OIL AND 125 MILLION CUBIC FEET OF GAS BY THE END OF THE YEAR THE OIL PRODUCTION FROM THIS ONE FIELD WILL BOOST SHELL'S DAILY OUTPUT BY 13 BASED ON 1993 PRODUCTION LEVELS AND HELP STEM A LONG DECLINE FOR THE COMPANY A SPOKESWOMAN FOR SHELL A SUBSIDIARY OF ROYAL DUTCH/SHELL GROUP WHICH HAS DUAL HEADQUARTERS IN THE HAGUE AND LONDON SAID THE COMPANY WAS PRESSING AHEAD WITH AUGER AND MARS DESPITE OIL PRICES THAT UNTIL RECENT WEEKS HAVE BEEN STUCK AT FIVEYEAR LOWS OF AROUND 15 A BARREL CRUDE OIL FOR MAY DELIVERY SETTLED YESTERDAY AT 1682 A BARREL UP 33 CENTS ON THE NEW YORK MERCANTILE EXCHANGE WHILE SOME ENERGY ANALYSTS NOW THINK PRICES WILL RISE FURTHER MOODY'S INVESTORS SERVICE INC YESTERDAY REITERATED ITS OPINION THAT THEY WILL REMAIN NEAR THE LOWER END OF A 13TO18 RANGE FOR SOME TIME SHELL OFFICIALS HAVE DECLINED TO SAY WHAT PRICE LEVEL MUST BE MAINTAINED FOR AUGER TO MAKE MONEY THE SPOKESWOMAN SAID IT IS A PROFITABLE DEVELOPMENT WE'RE LOOKING AT A LONGTERM 20YEAR PROJECT BUILDING A TRADITIONAL OIL PLATFORM FOR AUGER'S 2860 FEET OF WATER WASN'T FEASIBLE BECAUSE IT WOULD REQUIRE A HUGE STEEL STRUCTURE THAT GROWS EVER WIDER TOWARD THE BOTTOM AND WHOSE COSTS RISE EXPONENTIALLY SO SHELL ENGINEERS BUILT A TENSIONLEG PLATFORM THAT VASTLY REDUCES THE COST BECAUSE IT IS MADE OF MUCH LESS METAL ESSENTIALLY THE PLATFORM'S DECK FLOATS AND IS HELD IN PLACE WITH CABLELIKE TENDONS ANCHORED TO THE SEA FLOOR AUGER SITS IN WATERS ABOUT TWOTHIRDS DEEPER THAN THE PREVIOUS US RECORDHOLDER THE JOLLIET PLATFORM IN 1760 FEET OF GULF OF MEXICO WATERS OPERATED BY THE CONOCO INC SUBSIDIARY OF DUPONT CO 9404210167 940421 BUSINESS BRIEF BANKAMERICA REPUBLIC NEW YORK POST EARNINGS THAT EXCEEDED EXPECTATIONS BANKAMERICA CORP AND REPUBLIC NEW YORK CORP BOTH POSTED HIGHERTHANEXPECTED FIRSTQUARTER EARNINGS ALTHOUGH BANKAMERICA'S RESULTS INDICATED THE COMPANY IS STILL HAVING TROUBLE CUTTING COSTS NET INCOME AT SAN FRANCISCOBASED BANKAMERICA ROSE 6 TO 513 MILLION OR 127 A SHARE FROM 484 MILLION OR 119 A SHARE A YEAR EARLIER THE MEAN ESTIMATE OF BANKAMERICA'S NET INCOME BY FINANCIAL ANALYSTS WAS FOR 123 A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC REPUBLIC NEW YORK REPORTED A 16 PROFIT INCREASE TO 798 MILLION OR 138 A SHARE FROM 687 MILLION OR 118 A SHARE A YEAR EARLIER THE RESULTS WERE DRIVEN BY LOWER LOANLOSS PROVISIONS AND AN INCREASE IN TRADING REVENUE DESPITE A GENERALLY DECLINING MARKET YESTERDAY BANKAMERICA'S COMMON STOCK ROSE 125 OR 3 TO CLOSE AT 4350 A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE REPUBLIC NEW YORK COMMON ROSE 125 CENTS OR 03 TO 49625 FOR BANKAMERICA THE RESULTS ARE THE FIRST SIGN OF EARNINGS MOMENTUM IN THE PAST TWO YEARS SAID ANALYST THOMAS HANLEY OF CS FIRST BOSTON A MAJOR FACTOR WAS THE BETTERTHANEXPECTED IMPROVEMENT IN BANKAMERICA'S ASSET QUALITY THE PROVISION FOR CREDIT LOSSES WAS 125 MILLION IN THE QUARTER HALF OF THE 248 MILLION REPORTED IN THE YEAREARLIER QUARTER AND WHILE THE BANK'S TRADING INCOME OF 74 MILLION WAS DOWN SUBSTANTIALLY FROM THE 164 MILLION REPORTED A YEAR AGO IT WAS SOMEWHAT HIGHER THAN EXPECTED MR HANLEY SAID GIVEN THE VOLATILITY OF GLOBAL BOND AND CURRENCY MARKETS DURING THE QUARTER NET INTEREST INCOME FOR THE QUARTER WAS 179 BILLION DOWN 27 FROM A YEAR EARLIER AND THE NET INTEREST MARGIN WAS 446 DOWN FROM 473 BANKAMERICA'S OPERATING EXPENSES AS A PERCENT OF REVENUE ITS EFFICIENCY RATIO WORSENED IN THE QUARTER RISING TO 638 FROM 634 A YEAR EARLIER THAT PUTS THE BANK'S EFFICIENCY RATIO AT 13 PERCENTAGE POINTS ABOVE THE INDUSTRY'S AVERAGE IN 1993 ACCORDING TO FIRST BOSTON REPUBLIC NEW YORK'S RESULTS SHOWED IT WAS A GOOD QUARTER SAID KATHARINE ROSSOW A BANK ANALYST WITH SALOMON BROTHERS INC IT CONTINUES A STRONG RECORD OF SOLID AND PREDICTABLE PERFORMANCE THE BANKING COMPANY'S PROVISION FOR LOAN LOSSES WAS 10 MILLION IN THE FIRST QUARTER DOWN FROM 25 MILLION A YEAR EARLIER THE IMPROVEMENT HELPED THE PARENT OF REPUBLIC NATIONAL BANK OF NEW YORK TO OVERCOME A SLIGHT DECLINE IN INTERESTEARNING ASSETS FROM THE YEAR BEFORE TO 331 BILLION FROM 335 BILLION IN CONTRAST TO THE BIG MONEYCENTER BANKS REPUBLIC REPORTED IMPROVED TRADING RESULTS TRADING REVENUE ROSE TO 488 MILLION UP FROM 392 MILLION IN THE FIRST QUARTER OF 1993 THE BANK ATTRIBUTED THE GAIN TO PRECIOUSMETALS TRADING THE BANK EARNED COMMISSION INCOME OF 175 MILLION IN THE QUARTER UP FROM 94 MILLION IN THE FIRST QUARTER OF 1993 9404210166 940421 TECHNOLOGY & HEALTH SCIENTISTS REPORT FINDING A SIMILAR STEP IN DEVELOPMENT OF DIABETES ALZHEIMER'S BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL SCIENTISTS UNCOVERED A KEY STEP IN THE DEVELOPMENT OF ADULTONSET DIABETES THAT IS REMARKABLY SIMILAR TO ONE THAT OCCURS IN ALZHEIMER'S DISEASE THE DISCOVERY SUGGESTS A NEW APPROACH TO PREVENTING THE ADULTONSET TYPE OF DIABETES ALSO KNOWN AS TYPE II DIABETES THE SCIENTISTS SAID IT ALSO SUGGESTS THAT WHAT WORKS IN DIABETES MAY ALSO WORK IN ALZHEIMER'S DISEASE THE REPORT CARRIED IMPLICATIONS FOR BIOTECHNOLOGY COMPANIES WORKING ON PREVENTIVES AND THERAPIES FOR EITHER DISEASE PARTICULARLY INTERESTED WILL BE AMYLIN PHARMACEUTICALS INC OF SAN DIEGO WHICH HAS A JOINT VENTURE WITH THE US UNIT OF GLAXO HOLDINGS PLC THE BIG BRITISH DRUG COMPANY TO WORK ON DRUGS FOR TREATING DIABETES AND RELATED DISORDERS IN A REPORT PUBLISHED IN THIS WEEK'S ISSUE OF THE JOURNAL NATURE BOSTON RESEARCHERS SAID THEY DISCOVERED HOW A PROTEIN PRODUCED IN THE PANCREAS GLAND CAN DESTROY THE PANCREAS GLAND CELLS THAT MAKE INSULIN WITHOUT INSULIN THE CONCENTRATION OF SUGAR RISES IN THE BLOODSTREAM PRODUCING DIABETES THE RESEARCHERS AT CHILDREN'S HOSPITAL IN BOSTON WERE FOLLOWING UP ON A CLUE UNCOVERED IN THE LATE 1980S THIS WAS THE FACT THAT IN PATIENTS WITH THE TYPE OF DIABETES THAT DEVELOPS IN MIDDLE AGE TYPE II DIABETES THE PANCREAS GLAND TENDS TO MAKE EXCESS AMOUNTS OF A PROTEIN CALLED AMYLIN IT ALSO WAS FOUND THAT IN SUCH PATIENTS THE EXCESS AMYLIN MOLECULES TEND TO LINK TOGETHER TO FORM FIBERLIKE FIBRILS THAT ACCUMULATE IN THE PANCREAS CELLS THAT MAKE INSULIN LABORATORY EXPERIMENTS WITH HUMAN RAT AND CAT PANCREAS TISSUES SHOWED CLEARLY THAT THE AMYLIN FIBRILS CAN DESTROY THE INSULINMAKING CELLS BRUCE A YANKNER AND HIS COLLEAGUES REPORTED THE CLINCHING EXPERIMENT SHOWING THE DESTRUCTION CAN OCCUR IN HUMANS WAS CARRIED OUT IN TISSUES PROVIDED BY GORDON C WEIR OF THE JOSLIN DIABETES CENTER WHO OBTAINED THEM FROM A 39YEAROLD WOMAN WHO WAS KILLED IN AN AUTO ACCIDENT AND WILLED HER ORGANS TO MEDICINE DR YANKNER NOTED DR YANKNER AND HIS COLLEAGUES WHO ARE IN THE NEUROLOGY DEPARTMENT AT CHILDREN'S HOSPITAL HAD BEGUN LOOKING INTO THE ROLE OF THE AMYLIN FIBRILS IN DIABETES BECAUSE THEY HAD SEEN A REMARKABLY SIMILAR PROCESS IN ALZHEIMER'S DISEASE IN ALZHEIMER'S DISEASE A PROTEIN CALLED BETAAMYLOID PRECURSOR PROTEIN WHICH IS SIMILAR TO AMYLIN ALSO FORMS FIBRILS THAT ARE FOUND IN ABUNDANCE WHERE BRAIN CELLS HAVE BEEN DESTROYED IN 1990 DR YANKNER'S GROUP HAD PROVED THAT THE BETAAMYLOID FIBRILS DID IN FACT DESTROY BRAIN CELLS AND THUS PLAYED A KEY ROLE IN ALZHEIMER'S DISEASE WHAT CAUSES THE FIBRILS TO FORM IN BOTH DISEASES IS UNKNOWN DR YANKNER SAID IN AN INTERVIEW HE SAID THAT IT'S NOT YET KNOWN IF A DRUG COULD BE DEVELOPED THAT WOULD PREVENT THE FORMATION OF THE FIBRILS BUT IT CAN BE DONE IN THE TEST TUBE AND IT'S AN EXCITING PROSPECT SUCH A DRUG IF IT WORKED IN HUMANS MIGHT PREVENT OR DELAY THE DEVELOPMENT OF EITHER DISEASE IN SUSCEPTIBLE INDIVIDUALS IT WASN'T CLEAR HOW THE DISCOVERY WILL AFFECT AMYLIN PHARMACEUTICALS THE COMPANY WAS FOUNDED IN 1987 BY VENTURE CAPITALISTS AND ONE OF THE CODISCOVERERS OF AMYLIN IT HAS DEVELOPED CHEMICAL VARIATIONS OF AMYLIN ONE OF WHICH IS CURRENTLY IN CLINICAL TRIALS FOR USE IN PEOPLE WITH THE JUVENILE OR TYPE I DIABETES EXPLAINED MARJORIE T SENNETT VICE PRESIDENT AND CHIEF FINANCIAL OFFICER IN TYPE I DIABETES THE PANCREAS FAILS TO MAKE ANY INSULIN OR AMYLIN RATHER THAN OVERPRODUCING AMYLIN AS IN TYPE II DIABETES THE COMPANY'S DRUG TRIPROAMYLIN IS BEING TESTED TO SEE IF IT PREVENTS TYPE I DIABETICS FROM SUFFERING SHARP RISES AND FALLS IN BLOOD SUGAR AFTER MEALS AND AFTER SHOTS OF INSULIN THE COMPANY ALSO HAS A NUMBER OF AMYLINRELATED PRODUCTS UNDER DEVELOPMENT WITH GLAXO MS SENNETT SAID TWO OF THESE BLOCK TISSUES FROM TAKING UP AMYLIN THESE AMYLIN RECEPTOR BLOCKERS ARE ENTERING CLINICAL TRIALS TO SEE IF THEY WILL BE USEFUL IN TYPE II DIABETES SHE SAID ASKED WHETHER THE COMPANY HAS POTENTIAL DRUGS FOR BLOCKING THE FORMATION OF AMYLIN FIBRILS AS SUGGESTED BY DR YANKNER MS SENNETT SAID ONLY WE'VE PATENTED ALL SORTS OF DIFFERENT APPROACHES TO BLOCKING AMYLIN SHE SAID THE COMPANY ISN'T DOING ANY RESEARCH IN ALZHEIMER'S DISEASE DR YANKNER IN BOSTON SAID NEITHER HE NOR HIS COLLEAGUES HAD ANY LINKS TO AMYLIN PHARMACEUTICALS I DIDN'T EVEN KNOW THERE WAS A COMPANY LIKE THAT UNTIL AFTER WE BEGAN THESE EXPERIMENTS HE SAID DR YANKNER SAID THE DIABETES EXPERIMENTS STILL MUST BE CONFIRMED BY OTHER LABORATORIES 9404210165 940421 MAYFLOWER ACQUIRES LOUDERBACK INDIANAPOLIS MAYFLOWER GROUP INC'S MAYFLOWER TRANSIT INC SUBSIDIARY ACQUIRED THE BUSINESS OPERATIONS OF LOUDERBACK TRANSPORTATION CO A MOVING AND STORAGE COMPANY BASED IN THE PHILADELPHIA AREA TERMS WEREN'T DISCLOSED LOUDERBACK'S REVENUE WAS ABOUT 15 MILLION IN 1993 UNDER MAYFLOWER'S OWNERSHIP THE BUSINESS WILL BE OPERATED UNDER THE NAME LOUDERBACK TRANSPORTATION CO IN THE PHILADELPHIA AREA AND AS AMERICAN WAY MOVING & STORAGE CO ELSEWHERE IN PENNSYLVANIA AND IN DELAWARE NEW JERSEY AND FORT LAUDERDALE FLA 9404210164 940421 BUSINESS BRIEF BELL ATLANTIC'S PROFIT ROSE 18 IN 1ST PERIOD CORE OPERATIONS GREW PHILADELPHIA BELL ATLANTIC CORP REPORTED AN 18 JUMP IN FIRSTQUARTER PROFIT REFLECTING STRONG GROWTH IN ITS TELEPHONE AND WIRELESS SERVICES BUSINESS AS WELL AS CERTAIN CHARGES AFFECTING YEARAGO RESULTS THE REGIONAL PHONE COMPANY REPORTED NET INCOME OF 3892 MILLION OR 89 CENTS A SHARE UP FROM 3292 MILLION OR 76 CENTS A SHARE BELL ATLANTIC TOOK A CHARGE OF 67 MILLION IN THE LATEST QUARTER AND A CHARGE OF 232 MILLION A YEAR EARLIER FOR THE EARLY PAYMENT OF DEBT THE 1993 FIGURE ALSO INCLUDED A NET CHARGE OF 198 MILLION FOR CHANGES IN ACCOUNTING RULES REVENUE ROSE 66 TO 337 BILLION FROM 316 BILLION ACCESS LINES GREW 26 TO 483500 LINES WHILE TOTAL MINUTES OF USE GREW BY 11 THE NUMBER OF SUBSCRIBERS AT THE COMPANY'S WIRELESS OPERATIONS ROSE 53 TO 11 MILLION BELL ATLANTIC SAID IT EXPECTS ROBUST GROWTH IN ITS CORE BUSINESSES BELL ATLANTIC SURPRISED THE INDUSTRY IN FEBRUARY WHEN IT CALLED OFF ITS MULTIBILLIONDOLLAR PLAN TO ACQUIRE CABLE GIANT TELECOMMUNICATIONS INC THE COMPANIES HAD INTENDED TO SPEND ABOUT 15 BILLION BETWEEN 1994 AND 1998 TO BUILD A SOPHISTICATED NETWORK CAPABLE OF CARRYING VOICE DATA AND VIDEO SIGNALS TO HOMES BELL ATLANTIC'S PORTION WAS TO HAVE BEEN 10 BILLION TO 11 BILLION A BELL ATLANTIC SPOKESWOMAN SAID THE COMPANY STILL INTENDS TO MAKE THE SAME LEVEL OF EXPENDITURES STARTING THIS YEAR THE BABY BELL WILL SHIFT ABOUT 1 BILLION OF ITS ANNUAL 22 BILLION IN CAPITAL EXPENDITURES TO THE BUILDING OF THE ADVANCED NETWORK SHE SAID THE COMPANY INITIALLY EXPECTS TO PROVIDE VOICE DATA AND VIDEO PROGRAMMING TO ABOUT ONE MILLION HOMES BY EARLY 1997 SHARES OF BELL ATLANTIC ROSE 2375 OR 46 TO 53625 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING BELL ATLANTIC CORP PLANS TO OFFER VOICE DATA AND VIDEOPROGRAMMING SERVICES TO ONE MILLION HOMES BY THE END OF 1995 AN ARTICLE YESTERDAY INCORRECTLY SAID THE SERVICES INITIALLY WOULD BE OFFERED BY EARLY 1997 BASED ON INFORMATION SUPPLIED BY THE COMPANY 9404210163 940421 WHO'S NEWS TRIBUNE PICKS MADIGAN TO BE ITS PRESIDENT AND OPERATING CHIEF CHICAGO TRIBUNE CO NAMED JOHN W MADIGAN THE 57YEAROLD HEAD OF ITS PUBLISHING GROUP AS PRESIDENT AND CHIEF OPERATING OFFICER OF THE COMPANY EFFECTIVE MAY 31 MR MADIGAN CURRENTLY EXECUTIVE VICE PRESIDENT AND A MEMBER OF TRIBUNE'S BOARD WILL SUCCEED CHARLES BRUMBACK AS PRESIDENT MR BRUMBACK REMAINS TRIBUNE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE MOVE ESTABLISHES MR MADIGAN AS HEIR APPARENT AT THE DIVERSIFIED MEDIA CONCERN THE POST OF CHIEF OPERATING OFFICER HASN'T BEEN FILLED SINCE AUGUST 1990 WHEN MR BRUMBACK ASSUMED THE ROLE OF PRESIDENT AND CEO MR BRUMBACK 65 WAS NAMED CHAIRMAN ON JAN 1 1993 AND HASN'T ANNOUNCED ANY PLANS TO STEP DOWN IN ANNOUNCING THE APPOINTMENT TRIBUNE SAID MR MADIGAN HAS BEEN AN INTEGRAL PART OF CASTING THE STRATEGIES AND OPERATING PLANS TO POSITION ASSETS AND GENERATE GROWTH FOR THE COMPANY AS AN INFORMATION AND ENTERTAINMENT CONCERN MR MADIGAN A FORMER INVESTMENT BANKER JOINED THE COMPANY IN 1975 AS VICE PRESIDENT FINANCE AS HEAD OF THE PUBLISHING GROUP MR MADIGAN HAS OVERSEEN SEVERAL ACQUISITIONS INCLUDING THE WRIGHT GROUP COMPTON'S AND CONTEMPORARY BOOKS WHICH HELPED TO POSITION THE COMPANY IN THE INTERACTIVEMULTIMEDIA AND SUPPLEMENTALEDUCATION BUSINESSES 9404210162 940421 INTERNATIONAL TAIWAN EASES TONE AFTER CHINA MAKES ARRESTS IN KILLINGS BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TENSIONS EASED BETWEEN TAIWAN AND CHINA OVER THE KILLINGS OF 24 TAIWANESE TOURISTS AFTER BEIJING RETREATED FROM ITS COVERUP OF THE MASSACRE TAIWANESE OFFICIALS MODERATED THEIR PUBLIC DENUNCIATIONS OF CHINA AFTER THREE CIVILIAN SUSPECTS WERE ARRESTED ON SUNDAY AND CHINESE PREMIER LI PENG MADE MILDLY CONCILIATORY STATEMENTS ON MONDAY BUT THEY STILL ASSERT THAT CHINESE SOLDIERS WERE INVOLVED IN THE TOURISTS' DEATHS AND ARE PRESSING BEIJING TO PROVIDE MORE DETAILS TAIWANESE OFFICIALS AND ANALYSTS SAY THE TWO GOVERNMENTS FEAR THAT THEIR BUDDING RELATIONSHIP HAS BEEN ENDANGERED BY REVULSION IN TAIWAN OVER THE INCIDENT THEY SAY BOTH SIDES WERE STARTLED BY POLLS RELEASED OVER THE WEEKEND THAT SHOWED A SURGE IN SUPPORT AMONG THE TAIWANESE FOR INDEPENDENCE FROM CHINA ALTHOUGH TAIWAN IS ESSENTIALLY INDEPENDENT BOTH GOVERNMENTS CLAIM IT IS PART OF CHINA A POWERFUL SEPARATIST MOVEMENT COULD INCITE A MILITARY RESPONSE FROM BEIJING THE SLAYINGS TOOK PLACE MARCH 31 ON A TOURIST BOAT IN ZHEJIANG PROVINCE THE CHINESE AUTHORITIES WHO FOR A WEEK INSISTED THE DEATHS WERE ACCIDENTAL NOW SAY THE THREE SUSPECTS BOARDED THE BOAT ROBBED THE 24 TOURISTS AND EIGHT CHINESE CREW MEMBERS AND THEN KILLED THEM TAIWANESE FAMILY MEMBERS WHO TRAVELED TO CHINA TO RETRIEVE THE BODIES WERE BARRED FROM INSPECTING THE REMAINS CONDUCTING AUTOPSIES OR BRINGING THE BODIES HOME FOR CREMATION THE MAINLAND'S HANDLING OF THE AFFAIR ENRAGED TAIWAN WHOSE PRESIDENT LEE TENGHUI CALLED THE CHINESE GOVERNMENT BANDITS TO PUNISH CHINA TAIWAN BANNED TOUR GROUPS FROM VISITING THE MAINLAND AND SUSPENDED ITS REVIEW OF TAIWANESE COMPANIES' APPLICATIONS TO INVEST IN CHINA OFFICIALS NOW SAY THESE SANCTIONS COULD BE LIFTED BUT TAIWAN ISN'T TURNING OFF THE HEAT ITS SENIOR INTELLIGENCE OFFICIAL WEDNESDAY TOLD A LEGISLATIVE COMMITTEE THAT THE GOVERNMENT BELIEVES MORE THAN EIGHT PEOPLE INCLUDING CHINESE SOLDIERS WERE INVOLVED IN THE KILLINGS ACCORDING TO LAWMAKERS WHO ATTENDED THE CLOSED SESSION ANALYSTS SAY THE INVOLVEMENT OF SOLDIERS IS PLAUSIBLE GIVEN REPORTS OF THE MILITARY'S ROLE IN SMUGGLING RINGS AND OTHER CRIMINAL ACTIVITIES ALONG WITH DEMANDS THAT CHINA GIVE DETAILED ACCOUNTS OF THE EVIDENCE IN THE CASES TAIWAN ALSO IS ASKING THAT TAIWANESE REPORTERS AND RELATIVES OF THE DECEASED BE PERMITTED TO ATTEND THE SUSPECTS' TRIALS WHILE TAIWAN IS INTENT ON IMPROVING RELATIONS WITH BEIJING OVER THE LONG HAUL ANALYSTS SAY IT WANTS TO EXTRACT MAXIMUM ADVANTAGE FROM THE KILLINGS THIS GIVES THEM A CERTAIN LEVERAGE IN GETTING THE CHINESE TO BEHAVE A LITTLE BETTER SAYS JAMES LILLEY FORMER US AMBASSADOR TO BEIJING AND A SENIOR DEFENSE DEPARTMENT OFFICIAL IN THE BUSH ADMINISTRATION WHO MET TUESDAY WITH PRESIDENT LEE 9404210161 940421 WHO'S NEWS REYNOLDS METALS CO REYNOLDS METALS CO RICHMOND VA THIS ALUMINUM PRODUCER NAMED FOUR CURRENT EXECUTIVES TO NEW CORPORATE VICE PRESIDENT POSTS ALLEN M EAREHART 51 YEARS OLD WHO HAS BEEN CONTROLLER WAS NAMED TO THE ADDITIONAL POST OF VICE PRESIDENT PAUL RATKI 54 FORMERLY GENERAL MANAGER OF THE COMPANY'S REDUCTION AND RECLAMATION DIVISION WHICH HAS SINCE BEEN RENAMED THE METALS DIVISION WAS NAMED VICE PRESIDENT AND GENERAL MANAGER OF THAT DIVISION AND JAMES R AITKEN 59 AND EUGENE M DESVERNINE 52 BOTH EXECUTIVE VICE PRESIDENTS AT THE COMPANY'S REYNOLDS INTERNATIONAL INC UNIT WERE NAMED VICE PRESIDENTS OF THE PARENT 9404210160 940421 CAPX SEES FLAT NET FOR FISCAL '94 PLANS TO ENTER NEW MARKETS MIAMI BEACH FLA CAPX CORP EXPECTS TO REPORT FLAT RESULTS FOR FISCAL 1994 PRESIDENT AND CHIEF EXECUTIVE STEVEN SIMON SAID FOR THE YEAR ENDED MARCH 31 1993 CAPX WHICH BUYS INSURANCE POLICIES FROM THE TERMINALLY ILL EARNED 311093 OR SIX CENTS A SHARE ON REVENUE OF 12 MILLION CAPX EXPECTS TO REPORT ITS FISCAL 1994 EARNINGS IN MIDJUNE MR SIMON SAID IN AN INTERVIEW MR SIMON SAID THE COMPANY ALREADY IS ANTICIPATING AN EXCELLENT YEAR IN FISCAL 1995 MR SIMON JOINED CAPX AS CHIEF EXECUTIVE A YEAR AGO WHEN THE COMPANY ACQUIRED ITS CHIEF COMPETITOR AMERICAN LIFE RESOURCES CORP HE SAID THE PAST 12 MONTHS HAVE LARGELY BEEN SPENT HIRING NEW MANAGEMENT CREATING A CORPORATE INFRASTRUCTURE AND CONSOLIDATING CAPX'S AND AMERICAN LIFE'S SYSTEMS AND PROCEDURES IN COMING MONTHS CAPX EXPECTS TO ANNOUNCE MAJOR PUSHES INTO NEW MARKETS PRIMARILY IN EUROPE AND JAPAN MR SIMON SAID NOTING THAT THE COMPETITIVE CLIMATE IS FAR LESS INTENSE OVERSEAS THAN IT IS IN THE US WHERE ABOUT 60 COMPANIES ARE NOW INVOLVED IN BUYING INSURANCE POLICIES FROM TERMINAL PATIENTS NEVERTHELESS MR SIMON SAID NEARLY TWICE AS MANY TERMINALLY ILL PEOPLE IN THIS COUNTRY ARE TRYING TO SELL THEIR LIFEINSURANCE POLICIES TO CAPX THAN WERE APPROACHING THE COMPANY A YEAR AGO BUT CAPX IS ACTUALLY PURCHASING FEWER POLICIES BECAUSE ABOUT HALF OF THE POTENTIAL CUSTOMERS HAVE LIFE EXPECTANCIES BEYOND THE COMPANY'S UNDERWRITING GUIDELINES OF 24 MONTHS 9404210159 940421 INNOVO GETS DISTRIBUTION PACT SPRINGFIELD TENN INNOVO CORP RECEIVED A FIVEYEAR CONTRACT TO DISTRIBUTE CREATIVE INNOVATIONS' PRODUCTS WORLDWIDE PENDING APPROVAL OF THE MAJOR LEAGUE BASEBALL PLAYERS ASSOCIATION TERMS WEREN'T DISCLOSED CREATIVE INNOVATIONS SAN DIEGO DESIGNS AND MAKES PRODUCTS WITH IMAGES AND SIGNATURES OF SPORTS AND ENTERTAINMENT PERSONALTIES IN A NEWS RELEASE INNOVO ALSO SAID IT RECEIVED RIGHTS TO USE IMAGES AND SIGNATURES OF CREATIVE INNOVATIONS' CLIENTS ON INNOVO'S SPORTS BAGS AND OTHER PRODUCTS 9404210158 940421 US RESERVE ASSETS INCREASED IN MARCH WASHINGTON US OFFICIAL RESERVE ASSETS ROSE 104 BILLION IN MARCH TO 7681 BILLION THE TREASURY DEPARTMENT SAID LAST MONTH'S INCREASE COMPARED WITH A 152 BILLION RISE IN RESERVE ASSETS IN FEBRUARY TO 7577 BILLION THE DEPARTMENT SAID THE NATION'S HOLDINGS OF FOREIGN CURRENCIES INCREASED 795 MILLION IN MARCH TO 4424 BILLION WHILE ITS GOLD RESERVES OF 11052 BILLION FELL 1 MILLION US HOLDINGS OF IMF SPECIAL DRAWING RIGHTS LAST MONTH ROSE 88 MILLION TO 938 BILLION AND ITS RESERVE POSITION AT THE IMF ROSE 161 MILLION TO 1214 BILLION 9404210157 940421 MARKETING & MEDIA COKE HOPES OK' NEW DRINK WILL BE THE TOAST OF TEENS BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL COCACOLA CO HOPES TO PERSUADE YOUNG MALE CONSUMERS TO SETTLE FOR AN OK DRINK THAT'S THE NAME OF COKE'S NEWEST ENTRY IN THE SOFTDRINK MARKET SCHEDULED TO HIT SOME STORE SHELVES IN THE NEXT MONTH THE TASTE MAY BE UNIQUE AN ORANGY PEPPERY BROWN DRINK THAT IS LESS CARBONATED THAN COLA BUT JUST AS SWEET THE PACKAGE GREY WITH BLACK LETTERING FEATURES FLIP SLOGANS SUCH AS WHAT'S THE POINT OF OK' WELL WHAT'S THE POINT OF ANYTHING MARKETING AND SOFTDRINK CONSULTANTS SAID THE DRINK IS AIMED DIRECTLY AT THE NICHE OF SWEET FLAVORED DRINKS LIKE DR PEPPER AND MOUNTAIN DEW THAT HAVE BEEN GROWING THREE TIMES FASTER THAN THE ENTIRE INDUSTRY IN THE PAST FEW YEARS BY APPEALING TO YOUNG CONSUMERS THOSE BRANDS POSTED MORE THAN 2 BILLION IN SALES EACH IN THE 49 BILLION SOFTDRINK MARKET LAST YEAR AND THEY ARE THE MOST POPULAR SOFT DRINKS AMONG TEENAGERS AFTER COKE AND PEPSI ACCORDING TO A SURVEY THIS YEAR BY TEENAGE RESEARCH UNLIMITED A MARKETING CONSULTANCY IN NORTHBROOK ILL COKE WON'T COMMENT ON HOW MUCH IT WILL SPEND TO MARKET OK OR ON WHAT ITS MARKETING PLANS ARE BUT THE COMPANY SAYS IT WILL AIM THE DRINK AT AN AUDIENCE OF 12YEAROLD TO 25YEAROLD CONSUMERS PRIMARILY MALES THE ATLANTABASED COMPANY PLANS TO SELL THE BEVERAGE IN FOUR ADDITIONAL COUNTRIES BUT DECLINED TO IDENTIFY THEM MARKETING CONSULTANTS SAY THE BRAND WILL HAVE TO REACH 200 MILLION TO 500 MILLION IN ANNUAL SALES TO BE THE HOME RUN HIT THAT SERGIO ZYMAN COKE'S HEAD OF GLOBAL MARKETING SAYS IT WILL BE IT PLAYS INTO TEEN CULTURE MR ZYMAN SAID IT'S TARGETED AT PEOPLE WHO WATCH BEAVIS AND BUTTHEAD AND THE PARTRIDGE FAMILY IN THE SAME HALF HOUR IT'S PART OF A MARKETING PLOY AND OUR AUDIENCE KNOWS THAT IF IT WORKS THE DRINK WILL APPEAL TO CONSUMERS WHO HAVE DROPPED OUT OF DRINKING MAINSTREAM COLAS SAID CLAY TIMON HEAD OF LANDOR ASSOCIATES IMAGE CONSULTANTS IN SAN FRANCISCO THIS BEVERAGE IS FOCUSING ON THE ROUGHER GRUFFER INYOURFACE CROWD THAT NIKE AND REEBOK HAVE TARGETED HE SAID USING BLACK THE MOST POPULAR COLOR AMONG TEENS AND GREY ALSO DRAWS THEM SAID PETER ZOLLO PRESIDENT OF TEENAGE RESEARCH THE NAME MAY NOT BE A CLEAR WINNER AMONG YOUNG CONSUMERS WARNED MARKETING EXPERTS THE WORD OK IS ALMOST TOO PABLUMLIKE SAID TOM PIRKO PRESIDENT OF BEVMARK INC A BEVERAGE CONSULTING FIRM THIS PRODUCT NEEDS AN EDGE HOWEVER COKE WAS WISE NOT TO CHOOSE A WORD THAT IS CURRENTLY HOT AMONG TEENS SINCE THAT OFTEN TURNS OFF TEEN CONSUMERS SAID MR ZOLLO WIEDEN & KENNEDY THE PORTLAND ORE ADVERTISING AGENCY FOR NIKE INC IS DESIGNING ADVERTISING FOR THE BRAND 9404210156 940421 PETROLEUM DEVELOPMENT CORP BRIDGEPORT NY PETROLEUM DEVELOPMENT CORP SAID IT COMPLETED ITS FIRSTQUARTER DRILLING PROGRAM WITH 37 SUCCESSFUL WELLS AND THREE DRY HOLES ALL THE SUCCESSFUL WELLS AND TWO DRY HOLES WERE IN WEST VIRGINIA THE COMPANY SAID THE OTHER DRY HOLE WAS IN OHIO THE WEST VIRGINIA WELLS WERE DRILLED FOR THE OIL AND NATURALGAS COMPANY'S PUBLIC DRILLING PARTNERSHIPS THE COMPANY HOLDS A WORKING INTEREST OF ABOUT 20 IN EACH PRODUCTION IS SCHEDULED TO BEGIN IN THE NEXT 60 TO 90 DAYS 9404210155 940421 CBOT SEEKS TO MOVE ROUGHRICE CONTRACTS CHICAGO THE CHICAGO BOARD OF TRADE SAID IT IS SEEKING REGULATORY APPROVAL TO MOVE THE ROUGHRICE FUTURES AND OPTIONS CONTRACTS TO ITS TRADING FLOOR FROM THE MIDAMERICA COMMODITY EXCHANGE A CBOT UNIT THE CBOT SAID THE MOVE IS SUBJECT TO APPROVAL BY THE COMMODITY FUTURES TRADING COMMISSION ALTHOUGH RICE ISN'T A MAJOR CROP IN THE US TRADING IN THE CONTRACT HAS SWELLED IN RECENT MONTHS SINCE A CROP DISASTER FORCED JAPAN TO BEGIN IMPORTING RICE THE US ACCOUNTS FOR ABOUT 2 OF WORLD RICE PRODUCTION MARCH MIDAM VOLUME FOR RICE FUTURES TOTALED 7621 UP 267 FROM A YEAR EARLIER EACH CONTRACT REPRESENTS 200000 POUNDS OF US NO 2 OR BETTER LONG GRAIN ROUGH RICE THE RICE FUTURES CONTRACT HAS BEEN LISTED ON THE MIDAM SINCE NOVEMBER 1991 9404210154 940421 AT&T EARNINGS ROSE STRONGLY IN FIRST QUARTER RESULTS EXCEEDED ANALYSTS' EXPECTATIONS BUT LOSSES GREW AT COMPUTER UNIT BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA AT&T CORP POSTED STRONG FIRSTQUARTER RESULTS WITH PROFIT CLIMBING 17 FROM PREVIOUSLY RESTATED EARNINGS ON REVENUE GROWTH OF MORE THAN 5 AT&T'S RESULTS EXCEEDED ANALYSTS' EXPECTATIONS AND REFLECTED CONTINUED STRONG GAINS IN TELECOMMUNICATIONS EQUIPMENT FINANCIAL SERVICES AND THE CORE LONGDISTANCE TELEPHONE BUSINESS BUT LOSSES WIDENED AT ITS COMPUTER UNIT THE FORMER NCR CORP WHICH AT&T LINKED TO PRICE WARS IN THE GLOBAL INFORMATION INDUSTRY FIRSTQUARTER NET INCOME WAS 109 BILLION OR 80 CENTS A SHARE COMPARED WITH A LOSS OF 683 BILLION OR 507 A SHARE A YEAR EARLIER DUE TO AN ACCOUNTING CHANGE FOR RETIREE HEALTH AND OTHER BENEFITS EXCLUDING 777 BILLION IN CHARGES AT&T'S YEAREARLIER PROFIT WOULD HAVE BEEN 936 MILLION OR 69 CENTS A SHARE REVENUE IN THE LATEST QUARTER ROSE TO 1656 BILLION FROM 1572 BILLION AT&T IS NO SUNSET COMPANY CHAIRMAN ROBERT E ALLEN TOLD SHAREHOLDERS AT THE COMPANY'S ANNUAL MEETING HERE NOTING THAT THE 900 BILLION WORLDWIDE INFORMATION INDUSTRY IS EXPECTED TO SURPASS 1 TRILLION IN THE NEXT FEW YEARS HE VOWED THAT AT&T WOULD RIDE AND HELP POWER THAT WAVE OF GROWTH AND IT WILL ATTEMPT TO DO IT UNDER A NEW NAME SHAREHOLDERS YESTERDAY APPROVED CHANGING THE COMPANY'S NAME TO AT&T CORP FROM AMERICAN TELEPHONE & TELEGRAPH CO IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AT&T CLOSED AT 52125 UP 150 A LINCHPIN IN AT&T'S GROWTH PLAN THE COMPANY'S 126 BILLION MERGER WITH WIRELESS GIANT MCCAW CELLULAR COMMUNICATIONS INC STILL AWAITS COMPLETION MR ALLEN SAID HE EXPECTS THE MERGER TO OVERCOME ANY LEGAL AND REGULATORY HURDLES AND CLOSE BY THE END OF THE SUMMER ON MONDAY AT&T SUBMITTED FINAL DOCUMENTATION REQUESTED BY THE JUSTICE DEPARTMENT FOR AN ANTITRUST REVIEW OF THE PROPOSED MERGER THE DEPARTMENT HAS 20 CALENDAR DAYS FROM MONDAY TO OPPOSE THE MERGER PLAN OR TO LET IT PASS WE DON'T SEE ANY LEGITIMATE REASON THAT STANDS IN THE WAY OF COMPLETING IT MR ALLEN SAID IF WE ARE DELAYED SLIGHTLY SO BE IT AT&T HAD ALSO HOPED TO USE THE FORMER NCR CORP TO RIDE THE INFOWAVE BUT THE UNIT NOW CALLED AT&T GLOBAL INFORMATION SOLUTIONS IS BLEEDING MORE PROFUSELY WHILE REVENUE AT THE DAYTON OHIO COMPUTER MAKER ROSE 28 IN THE FIRST QUARTER ITS LOSSES SWELLED TO 57 MILLION FROM 14 MILLION A YEAR AGO FROM THIS QUARTER'S RESULTS IT'S CLEAR WHERE AT&T IS LEADING THE WAY AND WHICH BUSINESSES IT SHOULDN'T HAVE OWNED IN THE FIRST PLACE SAID JACK B GRUBMAN AN ANALYST AT SALOMON BROTHERS INC NCR IS AT&T'S ONLY BLACK MARK AT&T WOULD HAVE SHOWN A 20 EARNINGS INCREASE THIS QUARTER WITHOUT THEM THIS YEAR COULD BE FISHORCUTBAIT TIME FOR AT&T AND NCR SAID KENNETH LEON AN ANALYST AT LEHMAN BROTHERS INC HE NOTED THAT THE UNIT HAS BEGUN DRASTIC CUTS IN ITS COST STRUCTURE AT&T'S CORE BUSINESSES ENJOYED SMOOTH SAILING ITS LONGDISTANCE UNIT SHOWED ITS STRONGEST QUARTER SINCE THE EARLY 1980S MR GRUBMAN NOTED REVENUE ROSE ALMOST 3 TO 1022 BILLION FROM 997 BILLION FUELED MAINLY BY A 7 RISE IN TRAFFIC VOLUME THE UNIT'S OPERATING PROFIT GREW BY AS MUCH AS 20 IN THE QUARTER TO 14 BILLION ANALYSTS ESTIMATED MOST OF THE LONGDISTANCE UNIT'S GAINS CAME FROM AT&T'S NEW TRUE CONSUMER MARKETING CAMPAIGN AT&T STILL FALLS SHORT OF THE GROWTH OF SMALLER RIVALS MCI COMMUNICATIONS CORP AND SPRINT CORP BUT THE TRUE CAMPAIGN WON MORE THAN FIVE MILLION CUSTOMERS IN ITS FIRST 100 DAYS THE DOWNSIDE IS THAT THESE DISCOUNT CUSTOMERS MAY END UP GENERATING LOWER REVENUES IN THE FUTURE FOR EACH MINUTE THEY ARE USING AT&T'S SERVICE AT&T'S NETWORK SYSTEMS UNIT WHICH SELLS NETWORK SWITCHING EQUIPMENT AND TRANSMISSION GEAR TO COMMUNICATIONS CARRIERS POSTED AN 11 INCREASE IN QUARTERLY REVENUE TO 195 BILLION IT RECORDED ORDER GAINS FROM THE BABY BELLS AS WELL AS DOUBLEDIGIT OVERSEAS SALES GAINS INCLUDING BIG CONTRACTS FOR WIRELESS EQUIPMENT FROM ARGENTINA AND SOUTH KOREA FINANCIAL SERVICES INCLUDING AT&T'S LEASING SUBSIDIARY AND ITS UNIVERSAL CREDITCARD OPERATIONS CONTINUED TO SHOW ROBUST GROWTH AS REVENUE INCREASED 21 TO 691 MILLION 9404210153 940421 TREASURY PLANS TO RAISE 13 BILLION IN OFFERING OF 2YEAR 5YEAR NOTES WASHINGTON THE TREASURY PLANS TO RAISE SLIGHTLY MORE THAN 13 BILLION IN FRESH CASH NEXT WEEK WITH THE SALE OF 17 BILLION OF TWOYEAR NOTES AND 11 BILLION OF FIVEYEAR NOTES THE BALANCE OF THE PROCEEDS WILL BE USED TO REDEEM 1484 BILLION IN MATURING NOTES THE FEDERAL RESERVE HOLDS 156 BILLION OF THE MATURING SECURITIES FOR ITS OWN ACCOUNT THE FED ALSO HOLDS 139 BILLION OF MATURING SECURITIES AS AGENT FOR FOREIGN AND INTERNATIONAL MONETARY AUTHORITIES TENDERS FOR THE TWOYEAR NOTES ARE AVAILABLE IN MINIMUM DENOMINATIONS OF 5000 NONCOMPETITIVE TENDERS FOR THE TWOYEAR NOTES MUST BE RECEIVED BY NOON EDT NEXT TUESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE TWOYEAR NOTES MUST BE RECEIVED BY 1 PM EDT TUESDAY TENDERS FOR THE FIVEYEAR NOTES ARE AVAILABLE IN MINIMUM DENOMINATIONS OF 1000 NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON EDT NEXT WEDNESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EDT NEXT WEDNESDAY THE CUSIP NUMBER FOR THE TWOYEAR NOTES IS 912827P55 THE CUSIP NUMBER FOR THE FIVEYEAR NOTES IS 912827P63 9404210152 940421 YELLEN EMERGES AS A LIKELY NOMINEE TO FILL VACANCY AT FED RESERVE BOARD BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S ECONOMIC ADVISERS ARE RECOMMENDING THAT HE NOMINATE JANET YELLEN A MACROECONOMIST FROM THE UNIVERSITY OF CALIFORNIA AT BERKELEY TO ONE OF THE TWO VACANCIES ON THE FEDERAL RESERVE BOARD MS YELLEN 47 YEARS OLD IS A PROTEGE AND FORMER TEACHING ASSISTANT OF YALE UNIVERSITY ECONOMIST AND NOBEL LAUREATE JAMES TOBIN WHO HAS CRITICIZED THE FED'S RECENT MOVES TO RAISE INTEREST RATES SHE'S NOT ONLY A STRONG PROFESSIONAL ECONOMIST SAID MR TOBIN BUT A PERSON OF GOOD JUDGEMENT WHO WILL HAVE A VERY SALUTORY INFLUENCE ON THE FEDERAL RESERVE IF NOMINATED AND CONFIRMED BY THE SENATE MS YELLEN WOULD SUCCEED WAYNE ANGELL A REAGAN APPOINTEE WHOSE TERM EXPIRED EARLIER THIS YEAR MR CLINTON IS EXPECTED TO NOMINATE ANOTHER ACADEMIC WHITE HOUSE ECONOMIST ALAN BLINDER TO BE VICE CHAIRMAN OF THE FED BOARD THE ADDITION OF TWO CLINTON APPOINTEES TO THE SEVENMEMBER FED BOARD COULD ALTER THE INTERNAL DYNAMICS THERE NEITHER OF THE TWO PROBABLE NOMINEES IS LIKELY TO BE AN ALLY OF HARDLINERS WHO WOULD AGGRESSIVELY TRY TO REDUCE THE INFLATION RATE BELOW CURRENT LEVELS IN THE PAST THE ADDITION OF TWO NEW MEMBERS HAS ALTERED FED POLICY IN BOTH THE REAGAN AND BUSH ADMINISTRATIONS FOR INSTANCE THE PACE OF INTERESTRATE CUTS ACCELERATED AFTER TWO NEW MEMBERS WERE APPOINTED NEITHER MR BLINDER NOR MS YELLEN IS LIKELY TO BE IN PLACE BEFORE THE MAY 17 MEETING OF FED POLICY MAKERS WHICH IS WIDELY EXPECTED TO RESULT IN ANOTHER QUARTERPOINT INCREASE IN SHORTTERM INTEREST RATES MS YELLEN'S RECENT WORK HAS FOCUSED ON THE CAUSES AND COSTS OF UNEMPLOYMENT BUT SHE HAS WRITTEN ON A VARIETY OF ISSUES RANGING FROM THE EAST GERMAN LABOR MARKET TO GANGS IN AMERICAN CITIES MR CLINTON'S ECONOMIC ADVISERS SCOURED HER WRITINGS TO SEE IF SHE HAS SAID ANYTHING THAT MAKES HER SOUND SOFT ON INFLATION AND FOUND NOTHING TROUBLESOME SHE IS STRONGLY BACKED BY HER FORMER BERKELEY COLLEAGUE LAURA TYSON MR CLINTON'S CHIEF ECONOMIST AND SHE IMPRESSED BOTH TREASURY SECRETARY LLOYD BENTSEN WHO INTERVIEWED HER ON SATURDAY AND ROBERT RUBIN HEAD OF MR CLINTON'S NATIONAL ECONOMIC COUNCIL A GRADUATE OF BROWN UNIVERSITY WHO EARNED A DOCTORATE AT YALE MS YELLEN TAUGHT AT HARVARD UNIVERSITY AND THE LONDON SCHOOL OF ECONOMICS BEFORE GOING TO BERKELEY IN 1980 SHE IS MARRIED TO GEORGE AKERLOF A PROMINENT MACROECONOMIC THEORIST THE CLINTON ADMINISTRATION HAS BEEN CAREFUL TO AVOID CRITICIZING THE FED THOUGH IT PROTESTS DAILY THAT THE BOND MARKET HAS PUSHED LONGTERM INTEREST RATES TOO HIGH MR BENTSEN STUCK TO THAT LINE IN CONGRESSIONAL TESTIMONY YESTERDAY ASSURING A SENATE COMMITTEE THAT THE ECONOMIC EXPANSION IS NOT LIKELY TO BE DERAILED AT THIS POINT BY MODEST ADJUSTMENTS IN FED POLICY THE TREASURY SECRETARY SAID HOWEVER THAT THE ECONOMY MIGHT HAVE GROWN AS MUCH AS 35 OVER THE FOUR QUARTERS OF 1994 HAD THE FED HELD SHORTTERM RATES STEADY HE NOW EXPECTS THE ECONOMY TO GROW ABOUT 3 IN LINE WITH PREVIOUS ADMINISTRATION FORECASTS BUT HE WARNED THAT IF LONGTERM RATES REMAIN HIGH THE GROWTH COULD BE AFFECTED GIVEN THE FAVORABLE INFLATION OUTLOOK HE SAID HE SEES NO ECONOMIC JUSTIFICATION FOR LONGTERM RATES TO BE AS HIGH AS THEY ARE SEPARATELY THE PRESIDENT OF THE RICHMOND VA FEDERAL RESERVE BANK ALFRED BROADDUS HINTED THAT FURTHER RATE INCREASES ARE LIKELY IN A SPEECH HE SAID THAT THE SURGE IN LONGTERM INTEREST RATES SUGGESTS THAT THE BOND MARKET ISN'T YET CONVINCED THAT THE FED WILL SUCCESSFULLY PREVENT A BUILDUP OF INFLATIONARY PRESSURES THE FED HAS GOT TO COMPLETE THE JOB OF REBUILDING ITS CREDIBILITY AS AN INFLATION FIGHTER HE SAID WE STILL HAVE SOME DISTANCE TO GO BUT WE'RE ON A MORE SOLID FOOTING MR BROADDUS IS AMONG THE FIVE REGIONAL FED BANK PRESIDENTS WHO CURRENTLY HAVE A VOTE ON MONETARY POLICY ALSO THE INTERNATIONAL MONETARY FUND'S CHIEF ECONOMIST MICHAEL MUSSA SUGGESTED YESTERDAY THAT THE FED SHOULD RAISE SHORTTERM RATES NOW AT 375 TO BETWEEN 4 AND 5 THE IMF'S NEW ECONOMIC FORECAST RELEASED YESTERDAY PRAISED THE FED'S RECENT MOVES AND SAID FURTHER RATE INCREASES ARE NEEDED TO PREVENT A RISE IN INFLATIONARY PRESSURES AS THE EXPANSION MATURES 9404210151 940421 INTERNATIONAL CHRYSLER LIFTS JAPAN SALES TARGET TOKYO CHRYSLER CORP OF THE US AIMS TO BOOST ITS AUTO SALES IN JAPAN TO 20000 UNITS IN 1995 AFTER SELLING 13000 THIS YEAR AN OFFICIAL FOR CHRYSLER JAPAN SALES LTD SAID THE FIGURES ARE UP SHARPLY FROM ITS 1993 JAPANESE SALES OF 5699 CHRYSLER WHICH HAD ORIGINALLY FORECAST 1994 SALES OF 10000 UNITS REVISED THE TARGET AMID BOOMING SALES OF ITS JEEP CHEROKEE IN THE COUNTRY CHRYSLER OFFICIALS ALSO SAID THE COMPANY WILL INTRODUCE THE RIGHTHANDDRIVE VERSION OF THE NEON MODEL IN JAPAN IN THE EARLY PART OF 1996 9404210150 940421 WHO'S NEWS TURNER BROADCASTING SYSTEM INC TURNER BROADCASTING SYSTEM INC ATLANTA THE COMPANY SAID IT NAMED WILLIAM C BARTHOLOMAY 65YEAROLD BOARD CHAIRMAN OF THE ATLANTA BRAVES A VICE CHAIRMAN A NEW POSITION IN ADDITION THE MEDIA CONCERN SAID IT NAMED TWO NEW BOARD MEMBERS PETER R BARTON PRESIDENT AND CHIEF EXECUTIVE OFFICER OF LIBERTY MEDIA CORP OF ENGLEWOOD COLO AND ROBERT K SHAYE CHAIRMAN AND CHIEF EXECUTIVE OF NEW LINE CINEMA CORP OF NEW YORK MR BARTON 43 SUCCEEDS ROBERT MAGNESS CHAIRMAN OF TELECOMMUNICATIONS INC OF ENGLEWOOD COLO WHO RESIGNED HIS POSITION ON THE BOARD LAST FRIDAY MR SHAYE 55 SUCCEEDS MR BARTHOLOMAY WHO ALSO RESIGNED FROM THE BOARD 9404210149 940421 WHO'S NEWS PAINEWEBBER GROUP INC PAINEWEBBER GROUP INC NEW YORK JEROME B JOHNSTON WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT DIRECTOR OF CORPORATE COMMUNICATIONS AT THE PAINEWEBBER INC SUBSIDIARY OF THIS BROKERAGE FIRM EFFECTIVE MAY 9 MR JOHNSTON 40 YEARS OLD HAD BEEN SENIOR VICE PRESIDENT AND DIRECTOR OF CLIENT SERVICES AT THE CHICAGO OFFICE OF J WALTER THOMPSON CO A SUBSIDIARY OF WPP GROUP PLC 9404210148 940421 INTERNATIONAL BRITISH UNEMPLOYMENT EASES LONDON THE NUMBER OF PEOPLE REGISTERED AS UNEMPLOYED IN BRITAIN FELL 30300 ON A SEASONALLY ADJUSTED BASIS IN MARCH ACCORDING TO PROVISIONAL ESTIMATES BY THE UK DEPARTMENT OF EMPLOYMENT UNEMPLOYMENT FELL TO SEASONALLY ADJUSTED 97 OF THE WORK FORCE IN MARCH FROM 98 IN FEBRUARY THE FIGURES SHOW 9404210147 940421 INTERNATIONAL DEUTSCHE AEROSPACE SAW NET LOSS FOR 1993 MORE THAN DOUBLE MUNICH GERMANY STRUGGLING WITH RECESSION AND A MAJOR RESTRUCTURING DAIMLERBENZ AG'S DEUTSCHE AEROSPACE AG UNIT SAW ITS NET LOSS FOR 1993 MORE THAN DOUBLE TO 694 MILLION MARKS 408 MILLION EUROPE'S LARGEST AEROSPACE COMPANY SAID THE BIGGEST HIT TO ITS BOTTOM LINE CAME IN THE FORM OF A 11 BILLION MARK CHARGE FOR RESTRUCTURING BUT THE COMPANY WAS ALSO HURT BY A 98 DROP IN REVENUE TO 186 BILLION MARKS AS RECESSION FORCED SALES DOWN AT EVERY MAJOR BUSINESS DIVISION AT THE COMPANY IN 1992 THE COMPANY POSTED A NET LOSS OF 341 MILLION MARKS CHAIRMAN JUERGEN SCHREMPP PREDICTED ANOTHER DIFFICULT YEAR FOR 1994 BUT WE HAVE GOOD REASON TO BE CONVINCED THAT WE WILL ACHIEVE AS ANNOUNCED THE OBJECTIVE OF BEING BACK IN THE BLACK IN 1995 PROVIDED THAT THE POLITICALECONOMIC ENVIRONMENT IS NOT GOING FROM BAD TO WORSE HE ADDED THE RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS AS THE COMPANY HAD EARLIER WARNED OF ITS REVENUE DROP DEUTSCHE AEROSPACE FACES A UNIQUE SITUATION AS IT RESTRUCTURES AS THE COMPANY TRIES TO SORT OUT ITS MYRIAD DIVISIONS AND ACTIVITIES IT MUST CONFRONT THE WORST RECESSION IN THE HISTORY OF THE AVIATION INDUSTRY LAST YEAR THE COMPANY CUT ITS WORK FORCE BY NEARLY 9 FINISHING 1993 WITH 86086 WORKERS A MAJOR FACTOR BEHIND THE 11 BILLION MARK EXCEPTIONAL CHARGE THE COMPANY IS ALSO TRYING TO REDUCE ITS DEPENDENCE ON MILITARY PROGRAMS MILITARY ACTIVITIES WHICH FOUR YEARS AGO ACCOUNTED FOR 50 OF TOTAL REVENUE WERE DOWN TO JUST 27 OF SALES IN 1993 DEUTSCHE AEROSPACE'S AEROENGINE DIVISION SAW SALES PLUMMET 13 TO 31 BILLION MARKS WHILE DEFENSE AND CIVIL SYSTEMS WHICH MAKES RADAR AND ANTIAIRCRAFT EQUIPMENT SAW A 22 REVENUE FALL TO 28 BILLION MARKS 9404210146 940421 WHO'S NEWS DUN & BRADSTREET CORP DUN & BRADSTREET CORP WESTPORT CONN GEORGE E PALMER 49 YEARS OLD WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT DATA SERVICES AT THIS BUSINESS INFORMATION SERVICES COMPANY MOST RECENTLY MR PALMER WAS A MANAGEMENT CONSULTANT SPECIALIZING IN INFORMATION SYSTEMS OPERATIONS CONSOLIDATIONS AT AN INTERNATIONAL BUSINESS MACHINES CORP SUBSIDIARY 9404210145 940421 WALKOUT IN HAWAII BY GOVERNMENT UNION EXPECTED TO CONTINUE HONOLULU A STRIKE OF GOVERNMENT EMPLOYEES THAT BEGAN MONDAY HAS CRIPPLED MOST STATE AND COUNTY AGENCIES IN HAWAII AND ISN'T EXPECTED TO END UNTIL NEXT WEEK AT THE EARLIEST GOVERNMENT AND UNION OFFICIALS SAY MORE THAN 13000 CLERICAL AND OTHER MEMBERS OF THE HAWAII GOVERNMENT EMPLOYEES ASSOCIATION THE STATE'S LARGEST UNION WALKED OFF THE JOB ON MONDAY OVER A WAGE DISPUTE WHEN BARGAINING BROKE OFF LAST WEEKEND STATE AND UNION NEGOTIATORS REMAINED FAR APART THE UNION IS ASKING FOR WAGE INCREASES TOTALING ABOUT 16 OVER THE NEXT TWO YEARS WHILE THE GOVERNMENT'S LAST OFFER CALLED FOR A 4 RISE THE STRIKE HAS VIRTUALLY CLOSED MANY STATE AND COUNTY OFFICES HURTING AMONG OTHERS REAL ESTATE AGENTS AND CAR DEALERS WHO ARE UNABLE TO FINANCE TRANSACTIONS BECAUSE THEY CAN'T BE RECORDED TAXPAYERS WHO HAD UNTIL YESTERDAY TO FILE THEIR 1993 RETURNS COULDN'T TAKE THEM TO CLOSED OFFICES AND TRAFFIC VIOLATORS COULDN'T PAY THEIR FINES TOMORROW AN ADDITIONAL 7000 UNION MEMBERS MOSTLY PROFESSIONAL AND SCIENTIFIC WORKERS ARE SCHEDULED TO WALK OFF THEIR JOBS THERE ARE NO ESTIMATES YET OF THE ECONOMIC IMPACT OF THE STRIKE WHICH WAS EXPECTED TO BE SHORT BEFORE IT BEGAN AND IS STILL REGARDED BY MANY AS MORE AN INCONVENIENCE THAN AN ECONOMIC THREAT BUT SAID BANK OF HAWAII ECONOMIST PAUL BREWBAKER I WOULDN'T BET ON THAT IF IT LASTS BEYOND NEXT WEEK 9404210144 940421 INTERNATIONAL BRITISH BORROWING REQUIREMENT LONDON BRITAIN'S PUBLIC SECTOR BORROWING REQUIREMENT WIDENED TO 1127 BILLION 167 BILLION IN MARCH FROM A REVISED 455 BILLION IN FEBRUARY AND 953 BILLION A YEAR EARLIER THE TREASURY AND THE CENTRAL STATISTICAL OFFICE SAID THE MARCH FIGURE WAS ROUGHLY IN LINE WITH MARKET EXPECTATIONS THE FIGURE INCLUDES ABOUT 12 BILLION OF RECEIPTS FROM THE SALE OF STATE INDUSTRIES MAINLY A TRANCHE OF SHARES IN BRITISH TELECOMMUNICATIONS PLC SUCH PROCEEDS TOTALED 54 BILLION IN THE YEAREARLIER MONTH 9404210143 940421 HOFFENBERG WHO BID FOR THE NEW YORK POST INDICTED IN FRAUD CASE NEW YORK STEVEN HOFFENBERG A DEBT COLLECTOR WHO BRIEFLY ENJOYED THE SPOTLIGHT DURING AN ILLFATED ATTEMPT TO BUY THE NEW YORK POST LAST YEAR WAS FORMALLY INDICTED IN FEDERAL COURT IN MANHATTAN FOR SECURITIES AND MAIL FRAUD AND OBSTRUCTION OF JUSTICE THE CHARGES FILED BY THE US ATTORNEY'S OFFICE FOR THE SOUTHERN DISTRICT OF NEW YORK ALLEGED THAT MR HOFFENBERG DEFRAUDED INVESTORS IN HIS COLLECTIONS BUSINESS TOWERS FINANCIAL CORP OF AT LEAST 460 MILLION BY PROVIDING THEM WITH FALSE FINANCIAL STATEMENTS BETWEEN 1988 AND 1992 THE CHARGES ALSO SAID THAT MR HOFFENBERG AND UNNAMED COCONSPIRATORS LIED UNDER OATH PROVIDED FALSE DOCUMENTS AND OTHERWISE ATTEMPTED TO OBSTRUCT AN INVESTIGATION OF TOWERS BY THE SECURITIES AND EXCHANGE COMMISSION MR HOFFENBERG'S LAWYER JEFFREY HOFFMAN SAID HIS CLIENT PLANS TO PLEAD NOT GUILTY HE SAID HE WOULD COMMENT FURTHER AT THE ARRAIGNMENT TODAY MR HOFFENBERG WAS ARRESTED BY FEDERAL AGENTS IN FEBRUARY AFTER THE US ATTORNEY'S OFFICE FILED A COMPLAINT ALLEGING THE CRIMINAL FRAUD HE WAS RELEASED AFTER POSTING A 1 MILLION BAIL BOND IF CONVICTED HE FACES A MAXIMUM SENTENCE OF 15 YEARS IN PRISON A 500000 FINE AND THREE YEARS OF SUPERVISED RELEASE ON TUESDAY A FEDERAL GRAND JURY IN CHICAGO INDICTED MR HOFFENBERG ON CHARGES OF DEFRAUDING TWO SMALL ILLINOIS INSURANCE COMPANIES SEVEN YEARS AGO 9404210142 940421 DIVIDEND NEWS FLEET FINANCIAL RAISES QUARTERLY DIVIDEND TO 35 CENTS A SHARE ALBANY NY FLEET FINANCIAL GROUP RAISED ITS QUARTERLY DIVIDEND TO 35 CENTS A SHARE FROM 30 CENTS PAYABLE JULY 1 TO SHAREHOLDERS OF RECORD JUNE 3 THE ACTION RESTORES THE QUARTERLY RATE THAT FLEET BASED IN PROVIDENCE RI HAD PAID BEFORE CUTTING TO 20 CENTS A SHARE AT THE BEGINNING OF 1991 AS IT FACED BIG REAL ESTATE LOAN LOSSES AT THE BANKHOLDING COMPANY'S ANNUAL MEETING SHAREHOLDERS APPROVED A PERFORMANCEBASED BONUS PLAN FOR TOP EXECUTIVES THAT TIES BONUSES SOLELY TO FLEET'S NET INCOME AND RETURN ON EQUITY UNDER THE PLAN TERRENCE MURRAY FLEET'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE WILL RECEIVE A BONUS OF UP TO 024 OF NET INCOME IN ANY YEAR THAT FLEET'S RETURN ON EQUITY REACHES 15 FOR 1993 FLEET HAD A RETURN ON EQUITY OF 1607 AND NET INCOME OF 488 MILLION OR 301 A SHARE OTHER EXECUTIVES GET SMALLER AMOUNTS FLEET SAID THAT IF THE BONUS PLAN HAD BEEN IN EFFECT LAST YEAR MR MURRAY WOULD HAVE RECEIVED 12 MILLION AND THE OTHER EXECUTIVES WOULD HAVE RECEIVED 619000 APIECE 9404210141 940421 WHO'S NEWS PLAZA HOME MORTGAGE CORP PLAZA HOME MORTGAGE CORP SANTA ANA CALIF EDWARD F GOTSCHALL 39 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER AND EXECUTIVE VICE PRESIDENT OF THIS MORTGAGE BANKING COMPANY MR GOTSCHALL WHO WAS CHIEF FINANCIAL OFFICER OF A PLAZA HOME MORTGAGE LENDING SUBSIDIARY SUCCEEDS LILIN KO A SPOKESWOMAN FOR PLAZA HOME SAID MS KO IS LOOKING TO FURTHER HER CAREER GOALS ELSEWHERE AFTER MORE THAN FIVE YEARS WITH THE COMPANY 9404210140 940421 SUNRISE TECHNOLOGIES INC FREMONT CALIF SUNRISE TECHNOLOGIES INC SAID IT EXPECTS TO REPORT A FIRSTQUARTER NET LOSS OF ABOUT 13 MILLION OR 13 CENTS A SHARE BECAUSE OF REGULATORY DELAYS INVOLVING CERTAIN SUNRISE PRODUCTS IN THE YEAREARLIER QUARTER THE COMPANY REPORTED A NET LOSS OF 600000 OR SEVEN CENTS A SHARE THE MAKER OF MEDICAL AND DENTAL LASERS SAID IT EXPECTS TO REPORT THAT FIRSTQUARTER REVENUE WAS 22 MILLION DOWN FROM 31 MILLION A YEAR AGO SUNRISE'S STOCK FELL 625 CENTS TO 5 IN NASDAQ STOCK MARKET TRADING 9404210139 940421 TAXABLE MONEY FUNDS RECEIVE MORE CASH INVESTED BY INDIVIDUALS NEW YORK INDIVIDUAL INVESTORS CONTINUED TO ADD CASH TO TAXABLE MONEYMARKET FUNDS IN THE LATEST WEEK WHILE YIELDS ROSE SLIGHTLY IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS ROSE TO 308 FROM 305 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS INDIVIDUAL INVESTORS ADDED 127 BILLION TO ASSETS ACCORDING TO THE NEWSLETTER THIS BRINGS THE TOTAL INFLOW INTO FUNDS OPEN TO INDIVIDUALS TO ABOUT 13 BILLION IN THE PAST THREE WEEKS IN THE LATEST WEEK HOWEVER TOTAL ASSETS OF 649 TAXABLE FUNDS FELL BY 395 BILLION TO 48432 BILLION BECAUSE INSTITUTIONAL INVESTORS WITHDREW 523 BILLION INSTITUTIONAL INVESTORS ROUTINELY MOVE CASH BETWEEN MONEY FUNDS AND DIRECTMARKET INVESTMENTS TO CAPTURE THE BEST POSSIBLE RETURN WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT SAID THE OUTFLOW IN THE LATEST WEEK WAS A DIRECT RESPONSE TO THE FEDERAL RESERVE'S MOVE TO RAISE SHORTTERM INTEREST RATES THE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS ROSE TO 304 FROM 3 WHILE THE 30DAY SIMPLE YIELD ROSE TO 298 FROM 294 THE 30DAY COMPOUND YIELD INCREASED TO 302 FROM 298 AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS SHORTENED BY ONE DAY TO 46 DAYS ASSETS OF 351 TAXEXEMPT FUNDS ONE LESS THAN THE PREVIOUS WEEK FELL BY 291 BILLION TO 11591 BILLION THE NEWSLETTER SAID AS YIELDS FELL INSTITUTIONAL INVESTORS ACCOUNTED FOR 156 BILLION OF THE OUTFLOW WHILE INDIVIDUALS PULLED OUT 136 BILLION THE AVERAGE SEVENDAY COMPOUND YIELD ON TAXFREE FUNDS EASED TO 181 FROM 182 IN THE LATEST WEEK ACCORDING TO MONEY FUND REPORT THE LATEST TAXFREE YIELD IS EQUIVALENT TO A TAXABLE 283 FOR SOMEONE PAYING 36 IN TAXES AND TO 3 FOR THOSE WHO PAY 396 THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY WAS SHORTENED BY ONE DAY TO 47 DAYS MONEY FUND REPORT IS PUBLISHED BY IBC/DONOGHUE INC A SUBSIDIARY OF IBC USA PUBLICATIONS INC 9404210138 940421 HOUSE VOTES JOB BILL TO AID HIGHSCHOOL GRADUATES WASHINGTON THE HOUSE APPROVED COMPROMISE LEGISLATION DESIGNED TO HELP GRADUATING HIGHSCHOOL STUDENTS FIND JOBS THE SCHOOLTOWORK BILL APPROVED 33979 NOW IS EXPECTED TO CLEAR THE SENATE WHICH WORKED OUT THE CURRENT LANGUAGE WITH HOUSE NEGOTIATORS PRESIDENT CLINTON STRONGLY BACKS THE LEGISLATION THE BILL WOULD PROVIDE 300 MILLION IN THE CURRENT FISCAL YEAR TO HELP BUSINESSES AND SCHOOLS LINK UP TO PROVIDE ONTHEJOB TRAINING TO HIGHSCHOOL JUNIORS AND SENIORS THE GOAL IS TO HELP THE 75 OF HIGH SCHOOLERS WHO DON'T RECEIVE A COLLEGE DEGREE AND TO GENERATE BETTERPREPARED WORKERS SCHOOLTOWORK PARTICIPANTS WOULD RECEIVE A CERTIFICATE OF COMPETENCY IN A SET OF SKILLS FOR A CERTAIN FIELD AS WELL AS THEIR HIGHSCHOOL DIPLOMA THE PROGRAM IS DESIGNED TO PROVIDE FEDERAL GRANTS TO STATES AND LOCALITIES TO ESTABLISH PARTNERSHIPS AMONG BUSINESSES EDUCATORS AND LABOR GROUPS 9404210137 940421 INSURERS' LOSSES FROM EARTHQUAKE MAY TOP 6 BILLION BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL THE INSURANCE INDUSTRY'S LOSSES FROM THE JANUARY EARTHQUAKE IN CALIFORNIA NOW APPEAR LIKELY TO TOP 6 BILLION OR ABOUT 2 BILLION MORE THAN THE LAST ESTIMATE IN MARCH ALLSTATE CORP YESTERDAY INCREASED ITS ESTIMATED LOSSES FROM THE QUAKE 58 TO 950 MILLION THE SECOND UPWARD REVISION FOR THE INSURER THE MOVE FOLLOWS FRIDAY'S ANNOUNCEMENT BY FARMERS GROUP INC A UNIT OF BA T INDUSTRIES PLC THAT ITS LOSSES COULD GROW 33 TO 800 MILLION INDUSTRYWIDE ESTIMATES NOW TALLY 56 BILLION BUT DIRECT INSURANCE LOSSES ULTIMATELY COULD CLIMB TO AS MUCH AS 64 BILLION SAID JOHN SNYDER SENIOR VICE PRESIDENT OF AM BEST CO AN INSURANCE RATING SERVICE ORIGINALLY THE ESTIMATED LOSSES WERE PUT AT 25 BILLION THEN REVISED TO ABOUT 4 BILLION IN LATE MARCH THE MAGNITUDE OF THE EARTHQUAKE LOSSES IS UNPRECEDENTED SAID WAYNE HEDIEN CHAIRMAN OF ALLSTATE WHICH IS 801OWNED BY SEARS ROEBUCK & CO THE 6 BILLION FIGURE WOULD MAKE THE JAN 17 QUAKE THE NATION'S SECOND COSTLIEST CATASTROPHE FOR PROPERTY AND CASUALTY INSURERS BEHIND HURRICANE ANDREW WITH 16 BILLION IN PAID CLAIMS THE SOARING COST IS LARGELY ATTRIBUTED TO AFTERSHOCKS HIGHER LEVELS OF STRUCTURAL DAMAGE FOUND AS ENGINEERS GET INTO DWELLINGS FOR DETAILED INSPECTIONS HIGHERTHANANTICIPATED MATERIAL AND LABOR COSTS AND HIGHER PERSONALCONTENTS CLAIMS SOME INSURERS ALSO GROUSE ABOUT PRICEGOUGING MEANWHILE THE LOSSES ARE AFFECTING SOME INSURERS' RATINGS AM BEST IS REVIEWING THE RATINGS OF SEVEN COMPANIES HEAVILY EXPOSED TO THE QUAKE ON TUESDAY STANDARD & POOR'S CORP ANOTHER RATING SERVICE LOWERED ITS CLAIMSPAYINGABILITY RATINGS ON TWO UNITS OF 20TH CENTURY INDUSTRIES WHOSE QUAKE CLAIMS ARE ESTIMATED AT 325 MILLION THE INSURER HAS SAID IT WILL TAKE A 1617 MILLION CHARGE TO FIRSTQUARTER EARNINGS AFTER TAXES AND REINSURANCE WHICH REPRESENTS 26 OF ITS SURPLUS ONE UNIT WAS REDUCED TO SINGLEA FROM DOUBLEA AND THE OTHER UNIT WAS DROPPED TO TRIPLEB FROM SINGLEAPLUS EQE ENGINEERING INC A SAN FRANCISCOBASED EARTHQUAKE CONSULTANT ESTIMATES TOTAL INSURED AND UNINSURED PROPERTY DAMAGE AT 13 BILLION TO 17 BILLION BECAUSE SO MANY HOMEOWNERS LACKED EARTHQUAKE INSURANCE INSURERS ARE LOBBYING CONGRESS TO PASS A NATIONAL DISASTER LAW THAT WOULD REQUIRE QUAKE AND OTHER DISASTER COVERAGE AS PART OF STANDARD HOMEOWNER'S INSURANCE A MOVE DESIGNED TO SPREAD CATASTROPHE COSTS OVER A LARGER BASE SENATE HEARINGS ON THE BILL ARE SCHEDULED LATER THIS MONTH 9404210136 940421 JURY SAYS MONSANTO TO PAY 814 MILLION IN A SUPERFUND CASE HOUSTON A FEDERAL JURY HERE DECIDED MONSANTO CO SHOULD PAY 814 MILLION IN DAMAGES TO INTERNATIONAL TECHNOLOGY CORP OVER A LONGRUNNING FIGHT ABOUT CLEANING A SUPERFUND SITE WALL STREET ANALYSTS WERE SURPRISED BY THE SIZE OF THE JUDGMENT WHICH THE ST LOUISBASED CHEMICAL COMPANY SAID IT PLANS TO APPEAL IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING INTERNATIONAL TECHNOLOGY JUMPED 75 CENTS OR 32 TO 3125 MONSANTO FELL 1625 TO 76 INTERNATIONAL TECHNOLOGY TORRANCE CALIF GOT A CONTRACT FOR ABOUT 30 MILLION IN 1988 FROM MONSANTO TO CLEAN UP A POLYSTYRENE DISPOSAL SITE IN LAMARQUE TEXAS INTERNATIONAL TECHNOLOGY BUILT TWO INCINERATORS AT THE SITE AND THEN SAID IT DISCOVERED THE WORK WAS MORE EXPENSIVE THAN IT HAD BEEN LED TO EXPECT AFTER MONSANTO REJECTED ITS REQUEST FOR MORE MONEY INTERNATIONAL TECHNOLOGY QUIT THE SITE AND SUED IT ISN'T CLEAR HOW MONSANTO WOULD ACCOUNT FOR THE VERDICT IN ITS FINANCIAL STATEMENTS IF IT STANDS THE COMPANY HAS A 102 MILLION RESERVE TO COVER THE COST OF CLEANING UP SUPERFUND SITES BUT IT HASN'T CREATED A RESERVE TO COVER THIS PARTICULAR CASE MONSANTO IS SLATED TO RELEASE FIRSTQUARTER EARNINGS TODAY BUT THE RESULTS WON'T BE AFFECTED BY THE HOUSTON CASE PAUL RAMAN AN ANALYST AT SG WARBURG NEW YORK SAID THE SIZE OF THE JUDGMENT WAS SURPRISINGLY LARGE BASED ON THE COST OF CLEANING UP SITES OF SIMILAR SIZE THE JURY AWARDED INTERNATIONAL TECHNOLOGY 528 MILLION IN COMPENSATORY DAMAGES AND 286 MILLION IN PUNITIVE DAMAGES IT ALSO AWARDED 26 MILLION IN LEGAL FEES MONSANTO ARGUED IN THE FOURWEEK TRIAL THAT INTERNATIONAL TECHNOLOGY WAS BOUND BY THE CONTRACT TO DO THE WORK AT THE PRICE OF ITS WINNING BID WHICH MONSANTO SAID WAS BASED ON THE BEST INFORMATION AVAILABLE ABOUT THE CONDITION OF THE SITE WE'RE SORRY THE JURY DIDN'T ENFORCE THE CONTRACT SAID THOMAS M BISTLINE MONSANTO ASSISTANT GENERAL COUNSEL MONSANTO HAS DODGED BIG JUDGMENTS AGAINST IT IN TEXAS BEFORE EIGHT YEARS AGO A FEDERAL JURY IN GALVESTON FOUND THAT MONSANTO SHOULD PAY 108 MILLION TO THE FAMILY OF A CHEMICAL PLANT WORKER WHOSE DEATH FROM LEUKEMIA THE JURY LINKED TO BENZENE EXPOSURE THE DECISION WAS LATER SET ASIDE 9404210135 940421 INTERNATIONAL TOSHIBASEAGATE LICENSING PACT TOKYO JAPANESE ELECTRONICS MAKER TOSHIBA CORP AND DISKDRIVE MAKER SEAGATE TECHNOLOGY INC OF SCOTTS VALLEY CALIF ANNOUNCED A CROSSLICENSING ACCORD FOR MAGNETIC STORAGE DEVICES THE PACT IN SIMPLE TERMS LETS EACH COMPANY USE A NUMBER OF MAGNETIC MASSSTORAGE TECHNOLOGIES COVERED BY THE OTHER'S PATENTS TOSHIBA AND SEAGATE SAID IT COVERS EXISTING PATENTS AND FUTURE PATENTABLE DEVELOPMENTS THE COMPANIES SAID THE AGREEMENT WILL ENCOURAGE TECHNOLOGICAL INNOVATION AND PASS ON BETTER PRODUCT OPTIONS TO END USERS 9404210134 940421 LAW SUPREME COURT SAYS GIFT TAX APPLIES TO TRANSFERS FROM OLDER TRUST FUNDS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A VICTORY FOR THE INTERNAL REVENUE SERVICE THE SUPREME COURT SAID THE FEDERAL GIFT TAX APPLIES TO CERTAIN TRANSFERS FROM LONGESTABLISHED TRUST FUNDS THE UNANIMOUS DECISION WHICH REVERSED A LOWERCOURT RULING FAVORING TRUST BENEFICIARIES WILL TRANSLATE INTO MILLIONS OF DOLLARS IN REVENUE FOR THE GOVERNMENT THE IRS SAID TRUSTS CONTAINING BILLIONS OF DOLLARS IN ASSETS WILL BE AFFECTED A CENTRAL ISSUE IN THE CASE WAS THE TREATMENT OF BENEFICIARIES OF TRUSTS CREATED BEFORE 1932 WHEN THE FEDERAL GIFT TAX WAS ENACTED THE GRANDCHILD OF A MAN WHO CREATED A TRUST IN 1917 EFFECTIVELY TRANSFERRED A PORTION OF HER SHARE OF THE TRUST TO HER CHILDREN THE IRS SAID THE TRANSFER MADE IN 1979 WAS A TAXABLE GIFT THE WOMAN PAID 10 MILLION IN GIFT TAX AND INTEREST BUT AFTER HER DEATH REPRESENTATIVES OF HER ESTATE SOUGHT A REFUND A FEDERAL TRIAL COURT RULED THAT THE TAX WAS IMPROPERLY ASSESSED AND ORDERED A REFUND THE TRIAL COURT FOCUSED ON THE FACT THAT THE ORIGINAL TRANSFER OR CREATION OF THE TRUST OCCURRED IN 1917 WELL BEFORE THE GIFT TAX ACT PASSED IN 1932 A FEDERAL APPEALS COURT IN ST LOUIS AFFIRMED THAT DECISION BASED ON SIMILAR REASONING BUT THE SUPREME COURT SAID THE LOWER COURTS WERE WRONG SEPARATELY THE SUPREME COURT SAID THAT LOSING DEFENDANTS IN MARITIME LAWSUITS SHOULD PAY THEIR SHARE OF THE DAMAGES REGARDLESS OF SETTLEMENTS REACHED BY OTHER DEFENDANTS THE UNANIMOUS DECISION RESOLVED A PROBLEM THAT ARISES FREQUENTLY IN SUITS OVER SHIPPING AND OTHER ACTIVITIES AT SEA WHICH ARE GOVERNED BY FEDERAL ADMIRALTY LAW LOWER FEDERAL COURTS HAD BEEN SPLIT ON THE QUESTION OF WHETHER DEFENDANTS WHO ARE DEFEATED AT TRIAL SHOULD GET CREDITS FOR THE DOLLAR AMOUNT OF OUTOFCOURT SETTLEMENTS REACHED WITH OTHER DEFENDANTS THE SUPREME COURT RULED UNANIMOUSLY AGAINST AWARDING SUCH CREDITS 9404210133 940421 TECHNOLOGY COMPAQ PROFIT SALES JUMPED IN FIRST QUARTER BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL COMPAQ COMPUTER CORP CONTINUING TO STEAMROLL OVER THE REST OF THE PERSONALCOMPUTER INDUSTRY SAID ITS PROFIT MORE THAN DOUBLED IN THE FIRST QUARTER ON A 41 JUMP IN SALES THE COMPANY'S PERFORMANCE WHICH FAR EXCEEDED ANALYSTS' ESTIMATES PUTS COMPAQ IN LINE TO OVERTAKE APPLE COMPUTER INC LATER THIS YEAR AS THE SECONDLARGEST PC MAKER IN THE WORLD BEHIND LEADER INTERNATIONAL BUSINESS MACHINES CORP THIS COMPANY IS EXECUTING ITS STRATEGIES ALMOST FLAWLESSLY SAID WALTER J WINNITZKI A PERSONALCOMPUTER ANALYST AT DILLON READ & CO IN NEW YORK WE'RE LOOKING AT ANOTHER YEAR OF SUPER GROWTH COMPAQ BASED IN HOUSTON REPORTED NET INCOME OF 213 MILLION OR 239 A SHARE ABOUT 38 HIGHER THAN MOST ANALYSTS' FORECAST OF ABOUT 173 A SHARE THE EARNINGS SURPRISE LED MANY ON WALL STREET TO RAISE THEIR COMPAQ FORECASTS AS MUCH AS 30 FOR THE YEAR AND SENT THE COMPANY'S SHARES UP 3125 TO 101875 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING DURING LAST YEAR'S FIRST QUARTER COMPAQ EARNED 102 MILLION OR 123 A SHARE SALES IN THE LATEST QUARTER HIT 227 BILLION UP FROM 161 BILLION COMPAQ OFFICIALS SAID THEIR SHOWING WOULD HAVE BEEN EVEN STRONGER IN THE QUARTER IF THE COMPANY HADN'T SUFFERED FROM SHORTAGES OF SUCH CRITICAL PARTS AS COMPUTER SCREENS AND SPECIALIZED CHIPS DARYL J WHITE CHIEF FINANCIAL OFFICER SAID THE SHORTAGE WAS PARTICULARLY CRITICAL IN PORTABLE PRODUCTS LIKE NOTEBOOK PCS IF WE COULD HAVE BUILT MORE UNITS WE WOULD HAVE LOVED TO HAVE DONE THAT HE SAID ON THE POSITIVE SIDE THOUGH THE SHORTAGE ENDED UP HELPING PROFIT MARGINS SINCE COMPAQ WAS ABLE TO GET THE PARTS IT NEEDED FOR SUCH HIGHEND PRODUCTS AS COMPUTER SERVERS SALES OF THOSE PRICIER MACHINES SOARED IN THE QUARTER MR WHITE SAID SERVER SALES GREW 30 FROM LAST YEAR'S FOURTH PERIOD WHILE TOTAL REVENUE INCREASED ONLY 3 BECAUSE OF THE MORE FAVORABLE PRODUCT MIX COMPAQ'S NET PROFIT MARGIN CLIMBED TO 94 DURING THE QUARTER FROM 69 A YEAR AGO MR WHITE SAID AN IMPROVED PARTS INVENTORY AND SHARPLY INCREASED PLANT CAPACITY SHOULD ELIMINATE THE BOTTLENECKS FOR COMPAQ ENABLING THE COMPANY TO GOBBLE UP MARKET SHARE AS THE YEAR PROGRESSES INDEED BETWEEN NOW AND THE END OF THE YEAR MR WHITE SAID COMPAQ EXPECTS TO BOOST ITS CAPACITY BETWEEN 50 AND 75 IN OVERSEAS AND DOMESTIC PLANTS IN ANTICIPATION OF RECORD SALES THOSE COMMENTS YESTERDAY PROMPTED MANY ANALYSTS TO PREDICT THAT COMPAQ'S WORLDWIDE MARKET SHARE COULD GROW TO ABOUT 15 THIS YEAR FROM 85 IN 1993 ACCORDING TO INTERNATIONAL DATA CORP JOHN T ROSSI AN ANALYST AT ROBERTSON STEPHENS & CO IN SAN FRANCISCO SAID THAT KIND OF GROWTH WILL BOOST COMPAQ OVER APPLE IN WORLDWIDE MARKET SHARE THIS YEAR AND COULD PUT THE COMPANY WITHIN STRIKING DISTANCE OF MARKET LEADER IBM 9404210132 940421 INTERNATIONAL MITSUBISHI TESTS KOREAN STEEL TOKYO MITSUBISHI MOTORS CORP IS TESTING STEEL SHEETS PRODUCED BY SOUTH KOREAN STEEL GIANT POHANG IRON & STEEL CO AND IS CONSIDERING ORDERING SUCH SHEETS IN THE FUTURE A SPOKESMAN FOR THE JAPANESE CAR MAKER SAID THE SPOKESMAN SAID SOUTH KOREAN STEEL WOULD BE CHEAPER THAN PRODUCTS MADE BY JAPANESE STEELMAKERS IF MITSUBISHI AGREES TO ORDER STEEL FROM POHANG THE MOVE COULD INCREASE THE WOES OF JAPAN'S STEEL INDUSTRY AUTO MAKERS ARE ONE OF THE LARGEST SOURCES OF DOMESTIC DEMAND FOR JAPAN'S STEELMAKERS 9404210131 940421 WHO'S NEWS MELVILLE CORP MELVILLE CORP RYE NY ANN IVERSON WAS APPOINTED CHIEF EXECUTIVE OFFICER AND PRESIDENT OF KAYBEE TOYS A MALLBASED TOY RETAILER SUBSIDIARY OF THIS RETAIL STORE OPERATOR JERALD S POLITZER AN EXECUTIVE VICE PRESIDENT AT MELVILLE TEMPORARILY HELD THOSE POSITIONS SINCE JANUARY MS IVERSON WAS FORMERLY CEO AT MOTHERCARE A DIVISION OF BRITISH RETAILER STOREHOUSE PLC 9404210130 940421 WEDNESDAY'S MARKETS RATE FEARS DRIVE DROP IN CYCLICALS INDUSTRIAL AVERAGE DECLINES 2111 POINTS IN VOLATILE SESSION BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL FEARS THAT RISING INTEREST RATES WILL TAKE A TOLL ON ECONOMIC GROWTH SPURRED INVESTORS TO BAIL OUT OF ECONOMICALLY SENSITIVE STOCKS AND DRIVE SHARE PRICES LOWER OVERALL IN ANOTHER VOLATILE SESSION BONDS SURGED AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE TUMBLED 2111 POINTS TO 359871 STANDARD & POOR'S 500STOCK INDEX FELL 058 TO 44196 AND THE NASDAQ COMPOSITE INDEX SLUMPED 733 TO 70552 TRADING STARTED ON A SUNNY NOTE WITH THE INDUSTRIAL AVERAGE SHOOTING UP 25 POINTS DURING THE FIRST FIFTEEN MINUTES OF TRADING AMID A STEADY BOND MARKET AND SOME POSITIVE EARNINGS REPORTS BUT THE MOOD QUICKLY SOURED AS ECONOMICALLY SENSITIVE STOCKS WENT INTO A NOSEDIVE AFTER CATERPILLAR REPORTED STELLAR FIRSTQUARTER EARNINGS ANALYSTS SAID THE SELLOFF OCCURRED AS INVESTORS TURNED THEIR ATTENTION TO FUTURE EARNINGS GROWTH WHICH DOESN'T LOOK AS BRIGHT IN THE CURRENT ENVIRONMENT OF RISING INTEREST RATES AND HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY SEES SOME DARK CLOUDS ON THE HORIZON THE RECENT SHARP RISE IN INTEREST RATES WILL IMPAIR THE RECOVERY THROUGHOUT THE REST OF THE YEAR AND SLOW EARNINGS MOMENTUM HE CONTENDED THERE ARE SERIOUS QUESTIONS BEING RAISED ABOUT THE DURABILITY OF THE RECOVERY AND EARNINGS MR JOHNSON SAID THE MESSAGE SO FAR IS THE RISE IN RATES WILL HAVE A SIGNIFICANT NEGATIVE IMPACT ON THE ECONOMY AND EARNINGS THAT MESSAGE WAS SENT IN MANY WAYS CATERPILLAR PLUNGED 4 7/8 TO 103 1/2 DRAGGING OTHER HEAVY MACHINERY STOCKS WITH IT AND THROWING A LONG SHADOW OVER MANY ECONOMICALLY SENSITIVE STOCKS THE MORGAN STANLEY CYCLICAL INDEX SANK 2 IT NOW STANDS 114 BELOW ITS LEVEL AT THE STOCK MARKET'S PEAK ON JAN 31 IN ADDITION INVESTORS FLOCKED TO TRADITIONAL SAFEHAVEN STOCKS DURING WEAKER ECONOMIC CLIMATES SUCH AS CONSUMER NONDURABLES AND UTILITIES THE DOW JONES UTILITY AVERAGE GAINED 408 OR 21 TO 19964 OVER THE LAST THREE WEEKS AND NOW WITH AN INTENSITY THAT BORDERS ON DISTRESS INVESTORS ARE SHIFTING OUT OF CYCLICAL STOCKS AND INTO DEFENSIVE STOCKS MR JOHNSON SAID HOW LONG THAT LASTS REMAINS TO BE SEEN IF THIS IS A CORRECTION IT WON'T LAST THAT LONG BUT IF IT'S A BEAR MARKET IT MIGHT LAST FOR A LONG TIME THE INDUSTRIAL AVERAGE SLUMPED ALMOST 50 POINTS BEFORE BATTLING BACK NEAR THE CLOSE IT FINISHED JUST ABOVE THE RECENT LOW OF 359335 SET APRIL 4 DENNIS JARRETT CHIEF MARKET ANALYST AT KIDDER PEABODY SAID THAT IF THE DOW INDUSTRIALS BREACH THAT LOW THE CORRECTION WILL LIKELY BE HEADED INTO ITS FINAL STAGE THAT WILL TAKE IT DOWN TO 3200 TO 3400 THE LEADERSHIP OF THE LAST FEW MONTHS THE HEAVY MACHINERY AUTOS AND TECHNOLOGY ARE COMING UNDER THE GUN AND THESE STOCKS ARE USUALLY THE LAST TO GO HE SAID THAT WOULD SUGGEST TO ME THAT WE'LL BE GETTING CLOSE TO THE END OF THE CORRECTIVE PHASE IN THE NEXT FOUR TO SIX WEEKS THE SELLOFF IN ECONOMICALLY SENSITIVE STOCKS MAY BE OVERDONE SAID DONALD FINE CHIEF MARKET ANALYST WITH CHASE SECURITIES HE ARGUED THAT FAR FROM HURTING EARNINGS ANY SLOWDOWN IN THE ECONOMY WILL ONLY PROLONG THE BUSINESS CYCLE WHAT WE'RE GOING TO SEE IS STEADY SOLID ECONOMIC GROWTH WHICH IS GOOD FOR EARNINGS MR FINE SAID WHAT'S BAD FOR EARNINGS IS OVERHEATING GROWTH AND THEN A COLLAPSE EXPECTATIONS OF SLOWER GROWTH CHEERED BONDMARKET INVESTORS BOND PRICES EVEN FAILED TO RESPOND NEGATIVELY TO A COMMERCE DEPARTMENT REPORT SHOWING A 121 JUMP IN MARCH HOUSING STARTS EXCEEDING EXPECTATIONS MR FINE ARGUED THAT FURTHER IMPROVEMENTS IN BOND PRICES ARE POSSIBLE ONCE THE FEDERAL RESERVE PUSHES SHORTTERM INTEREST RATES UP TO 4 AND THE ECONOMY SHOWS REAL SIGNS OF SLOWING WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 060 TO 11252 IN MAJOR MARKET ACTION STOCK PRICES SANK VOLUME TOTALED 3623 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1417 ISSUES FELL AND 835 ROSE BOND PRICES CLIMBED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN HALF A POINT OR MORE THAN 5 FOR EACH 1000 FACE AMOUNT TO YIELD 731 THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16883 MARKS AND 10303 YEN COMPARED WITH 16997 MARKS AND 10305 YEN TUESDAY 9404210129 940421 INTERNATIONAL INTEREST RATES IN MEXICO SOAR STOCKS PLUNGE BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY SHORTTERM INTEREST RATES SOARED IN MEXICO YESTERDAY TO THE HIGHEST LEVELS IN MORE THAN A YEAR SENDING STOCKS REELING TO A SIXTH STRAIGHT LOSS ANALYSTS SAID BUYING INTEREST IN MEXICAN STOCKS AND INTERESTRATE SECURITIES HAS WEAKENED OVER CONCERN ABOUT THE PESO'S STABILITY RATES ON 28DAY MEXICAN TREASURY CERTIFICATES CALLED CETES JUMPED 342 PERCENTAGE POINTS TO 18 IN THIS WEEK'S AUCTION THE HIGHEST YIELDS SINCE MARCH 3 1993 THE MEXICAN BOLSA'S IPC INDEX TUMBLED 10744 POINTS OR 52 TO 195733 ITS LOWEST CLOSE SINCE NOV 8 YEARTODATE THE IPC INDEX IS DOWN ABOUT 32 IN DOLLAR TERMS WHILE THE CORRECT VALUATION OF THE MEXICAN CURRENCY AGAINST THE DOLLAR IS DEBATABLE WHAT CONCERNS INVESTORS IS THAT BOTH LOCAL AND FOREIGN INVESTORS APPEAR TO BE MOVING CAPITAL OUT OF MEXICO EVEN THOUGH INTEREST RATES HAVE RISEN IN THE LAST TWO AUCTIONS THE PESO HASN'T STRENGTHENED AGAINST THE DOLLAR YESTERDAY THE PESO WAS LITTLE CHANGED AT 33645 PESOS PER DOLLAR IN LATE INTERBANK TRADING INVESTORS ARE NOT SURE WHAT THE FINAL PESODOLLAR RATE WILL BE SAID BORJA USSIA PRESIDENT OF THE RESEARCH FIRM GRUPO MONEDA NOBODY IS GOING TO INVEST AT 16 17 18 OR 19 IF YOU HAVE THE RISK OF DEVALUATION BANCO DE MEXICO THE CENTRAL BANK HAS ABOUT 25 BILLION IN RESERVES TO DEFEND THE CURRENCY IN ADDITION TO LINES OF CREDIT FROM THE US TREASURY HOWEVER SO MUCH SENTIMENT IS AGAINST THE PESO THAT INVESTORS ARE INCREASINGLY WORRIED ABOUT THE RISK OF A DEVALUATION THE PESO TRADES FREELY WITHIN A 104 BAND SET BY THE BASIC ECONOMIC PACT BETWEEN THE GOVERNMENT BUSINESS AND LABOR HERE THE PACT SAYS THE PESO CAN WEAKEN AT 00004 PESOS A DAY THE CURRENCY IS NOW TRADING NEAR THE BOTTOM OF THAT BAND CONCERNS ABOUT THE MEXICAN CURRENCY HAVE BEEN RISING STEADILY SINCE FEBRUARY WHEN THE PESO STARTED AN UNEXPECTED SLIDE AGAINST THE DOLLAR THEN CONFIDENCE IN MEXICO WAS SHAKEN AFTER THE MARCH ASSASSINATION OF PRESIDENTIAL CANDIDATE LUIS DONALDO COLOSIO JOHN LIEGEY PRESIDENT OF NEW YORK MERCHANT BANK WESTON GROUP ESTIMATES THAT SOME 8 BILLION HAS FLOWED OUT OF MEXICO SINCE FEBRUARY HOWEVER YESTERDAY MEXICO'S FINANCE MINISTRY SAID DESPITE THE TURBULENCE OF THE FIRST QUARTER PORTFOLIO INVESTMENTS IN STOCKS AND SHORTTERM BONDS ROSE A NET 347 BILLION THE LATEST RISE IN RATES CAN ONLY BE A DISAPPOINTMENT TO MEXICAN FINANCE OFFICIALS WHO HAD HOPED TO JUMPSTART THIS YEAR'S WEAK ECONOMY WITH SINGLEDIGIT RATES AND HIGHER GOVERNMENT SPENDING IF THE RISE IN RATES STICKS FOR A PERIOD OF WEEKS THE ECONOMY HERE WHICH GREW AT ONLY 04 LAST YEAR WILL SUFFOCATE UNDER THE HIGH COST OF CREDIT 9404210128 940421 GE'S FIRSTQUARTER OPERATING PROFIT DECLINED 16 ON KIDDER UNIT CHARGE BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL REFLECTING A ONETIME CHARGE FOR ALLEGED FICTITIOUS TRADES AT ITS INVESTMENT BANKING UNIT GENERAL ELECTRIC CO SAID ITS FIRSTQUARTER PROFIT FROM CONTINUING OPERATIONS DECLINED 16 FROM A YEAR EARLIER NET INCOME SOARED FROM THE YEAREARLIER QUARTER IN WHICH NET WAS REDUCED BY TWO CHARGES ON ITS CONTINUING OPERATIONS GE RECORDED A PROFIT OF 107 BILLION DOWN FROM 109 BILLION IN THE 1993 FIRST QUARTER THE YEAREARLIER QUARTER EXCLUDES A CHARGE OF 862 MILLION RELATED TO AN ACCOUNTING CHANGE AND 75 MILLION RELATED TO DISCONTINUED AEROSPACE OPERATIONS GE'S NET INCOME ALSO WAS 107 BILLION OR 125 A SHARE IN THE 1994 QUARTER UP FROM 298 MILLION OR 35 CENTS A SHARE INCLUDING THE CHARGES JOHN F WELCH JR CHAIRMAN SAID THAT PRIOR TO TAKING THE CHARGE GE WAS PREPARED TO ANNOUNCE RECORD FIRSTQUARTER EARNINGS HE SAID GE'S OPERATING BUSINESSES AROUND THE GLOBE ARE STRONG AND THAT NOTHING HAS CHANGED THAT UNDERLYING STRENGTH THE FIRSTQUARTER EARNINGS INCLUDE A CHARGE OF 210 MILLION OR 25 CENTS A SHARE RELATED TO THE ALLEGED TRADING SCHEME AT KIDDER PEABODY GROUP INC THE TRADING DEBACLE WHICH GE DISCLOSED EARLIER THIS WEEK INVOLVED ALLEGED FICTITIOUS TRADES BY A GOVERNMENTBOND TRADER WHICH GE SAID INFLATED KIDDER'S INCOME BY 350 MILLION OVER MORE THAN A YEAR GE SAID 139 MILLION OF THE TOTAL CHARGE RELATES TO ACTIVITIES THAT OCCURRED PRIOR TO THE FIRST QUARTER GE'S FIRSTQUARTER PROFIT AFTER TAKING INTO ACCOUNT THE KIDDER CHARGE WAS IN LINE WITH WALL STREET ANALYSTS' ESTIMATES ABOUT 10 DAYS BEFORE DISCLOSING THE KIDDER PROBLEM GE IN A RARE EARNINGS PROJECTION SAID IT EXPECTED ITS FIRSTQUARTER PROFIT TO BE AT THE HIGH END OF ANALYSTS' ESTIMATES OF 145 TO 150 A SHARE AT THE TIME GE SAID IT MADE THE PREDICTION IN RESPONSE TO MEDIA INQUIRIES REGARDING GE'S STOCK PRICE AND KIDDER PERFORMANCE IN THE CURRENT INTERESTRATE ENVIRONMENT THE FAIRFIELD CONN MANUFACTURER'S REVENUE ROSE 10 TO 142 BILLION FROM 129 BILLION GE SAID THE GROWTH WAS LED BY INCREASES AT GE CAPITAL SERVICES ITS NATIONAL BROADCASTING CO UNIT APPLIANCES TRANSPORTATION PLASTICS AND MOTORS BUSINESSES THE OVERALL PERFORMANCE OF THE COMPANY WAS RELATIVELY STRONG EXCLUDING THE AIRCRAFT ENGINE BUSINESS SAID MARTIN SANKEY AN ANALYST AT FIRST BOSTON THE AIRCRAFT ENGINE BUSINESS HAS BEEN HURT BY DECLINING DEFENSE SPENDING AND WEAKNESS IN THE AIRLINES INDUSTRY MR SANKEY ESTIMATED THAT THE ENGINE BUSINESS WAS DOWN MORE THAN 20 IN SALES BUT GE'S ECONOMYSENSITIVE BUSINESSES FROM APPLIANCES TO LIGHTING ARE POSTING IMPROVED RESULTS THOSE SOCALLED SHORTCYCLE BUSINESSES MR SANKEY SAID COLLECTIVELY ROSE 15 IN UNIT VOLUMES FROM A YEAR EARLIER GE SAID ITS GE CAPITAL SUBSIDIARY'S FIRSTQUARTER PROFIT ROSE 20 FROM A YEAR EARLIER LED BY GROWTHS IN RETAILER FINANCING COMMERCIAL REAL ESTATE AND AUTO LEASING UNITS THE COMPANY SAID THE EARNINGS OF 330 MILLION FROM THE FINANCIAL SERVICES SEGMENT OF GE CAPITAL WERE DOWN SHARPLY FROM A YEAR EARLIER DUE TO THE CHARGE RELATED TO THE ALLEGED KIDDER BOND TRADING SCHEME GE SAID ITS OPERATING PROFIT MARGIN IN THE FIRSTQUARTER ROSE TO 125 FROM 12 A YEAR EARLIER IT ALSO SAID THAT STRONG CASH FLOW PERFORMANCE CONTINUED DURING THE FIRST QUARTER AND THAT CASH GENERATED FROM OPERATING ACTIVITIES REACHED ABOUT 600 MILLION 9404210127 940421 VARIL COMPLETES STOCK OFFERING DENVER VARIL CO A MAKER OF SIGNALPROCESSING COMPONENTS FOR THE WIRELESS COMMUNICATIONS INDUSTRY SOLD 850000 UNITS IN AN INITIAL PUBLIC OFFERING AT 5 A UNIT EACH UNIT CONSISTS OF ONE SHARE OF COMMON STOCK PLUS ONE WARRANT TO BUY A COMMON SHARE FOR 750 BEFORE APRIL 19 1997 THE COMPANY SAID IT WILL USE THE OFFERING'S NET PROCEEDS OF ABOUT 36 MILLION FOR WORKING CAPITAL TO BUY EQUIPMENT TO DEVELOP PRODUCTS AND TO RETIRE DEBT 9404210126 940421 WORLD MARKETS STOCKS SLUMP IN TOKYO ON PROFITTAKING FALL IN LONDON DIVE 52 IN MEXICO ON RATE JUMP A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS SLUMPED 15 IN SUBDUED DEALINGS WEDNESDAY AS INVESTORS TOOK PROFITS AFTER DECIDING THE MARKET HAD REACHED A CEILING FOR NOW LONDON SHARES FELL BROADLY AS HOPES FOR A CUT IN BRITAIN'S BASE LENDING RATE WERE DENTED BY ECONOMIC NEWS FRANKFURT EQUITIES ROSE BUT THE PERFORMANCE WAS CONSIDERED DISAPPOINTING MEXICAN SHARES NOSEDIVED 52 FOLLOWING A HUGE JUMP IN A BELLWETHER MEXICAN INTEREST RATE WRENCHING THE MARKET'S MAIN INDEX DOWN 32 FROM ITS RECORD HIGH SET FEB 8 WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11252 DOWN 060 REFLECTING LOWER ASIA/PACIFIC AND AMERICAN MARKETS AND HIGHER EUROPEAN MARKETS ADVERTISING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 13322 UP 214 OR 16 WITH INTERPUBLIC GROUP OF THE US POSTING A 54 GAIN IN ITS LOCAL CURRENCY HEALTH CARE STOCKS TRAILED AT 15093 DOWN 574 OR 37 WITH HUMANA OF THE US SLIDING 81 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 8502 POINTS TUESDAY SANK 31016 TO 1988218 IN TRADING THURSDAY THE NIKKEI INDEX INCHED UP THREE POINTS TO CLOSE THE MORNING SESSION AT 1988518 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 340 MILLION SHARES LITTLE CHANGED FROM 3381 MILLION SHARES A DAY EARLIER LOSERS OVERWHELMED GAINERS 807248 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH FELL 623 POINTS TUESDAY TUMBLED 2358 OR 14 TO 161343 THE NIKKEI'S FINISH BELOW 20000 WAS THE FIRST IN FOUR SESSIONS AS LINGERING JAPANESE POLITICAL UNCERTAINTY AND THE UPWARD TREND FOR INTEREST RATES PROVIDED FEW REASONS TO BUY STOCKS THE BENCHMARK INDEX MOVED BETWEEN A LOW OF 1985037 AND A HIGH OF 2022264 FOREIGN INVESTORS REMAINED NET BUYERS LIFTING SOME BLUE CHIPS BUT THIS WAS OVERWHELMED BY INDEXLINKED ARBITRAGE SELLING AND WHEN THE NIKKEI DROPPED BELOW 20000 THIS SPARKED UNLOADING OF LONG FUTURES POSITIONS PROMPTING FURTHER ARBITRAGE SELLING WITH JAPANESE AND US INTEREST RATES RISING PROFITTAKING WAS HEAVY IN TOKYO AMONG BANKING AND FINANCIAL STOCKS AS WELL AS AMONG ELECTRONICS SHARES BECAUSE OF THE JAPANESE YEN'S CONTINUED STRENGTH IN CURRENCY DEALINGS A POLITICAL DISPUTE ABOUT TAXES IN THE MANEUVERING TO SELECT A NEW PRIME MINISTER DELAYED THAT PROCESS FURTHER EXASPERATING INVESTORS AWAITING A NEW GOVERNMENT TO TACKLE NEEDED ECONOMICSTIMULUS POLICIES IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SHED 297 POINTS TO 30983 WITH 80 ISSUES DECLINING AND 17 ADVANCING THE FINISH WAS JUST 14 POINTS ABOVE THE INTRADAY LOW THE FT 30STOCK INDEX RETREATED 215 POINTS TO 24627 VOLUME WAS 6754 MILLION SHARES COMPARED WITH 7695 MILLION SHARES A DAY EARLIER THE CATALYST FOR THE DROP WAS NEWS OF GREATERTHANEXPECTED YEARONYEAR GROWTH IN AVERAGE EARNINGS FOR JANUARY AND FEBRUARY AND IN A SHARPERTHANANTICIPATED DECLINE IN THE NUMBER OF JOBLESS PEOPLE IN MARCHDATA THAT ARGUED AGAINST FURTHER REDUCTIONS SOON IN BRITISH INTEREST RATES HURTING THE BOND MARKET AND IN TURN EQUITIES IN FRANKFURT THE DAX 30STOCK INDEX ROSE 1022 POINTS TO 218264 FOLLOWING TUESDAY'S 5636POINT LOSS BUT THE LATEST FINISH WAS ABOUT 11 POINTS LOWER THAN THE LEVEL REACHED IN TUESDAY'S LATER ELECTRONIC TRADING A 012 PERCENTAGEPOINT CUT IN THE GERMAN CENTRAL BANK'S LOWEST ACCEPTED SECURITIES REPURCHASE RATE YESTERDAY DIDN'T BOOST STOCKS AND WAS IGNORED BY THE GOVERNMENT BOND MARKET IN PARIS STOCKS TUMBLED 16 BECAUSE OF JITTERS ABOUT THE FRENCH FRANC AND SLUMPING DOMESTIC BONDS EXACERBATED BY EARLY LOSSES ON WALL STREET THE CURRENCY'S WEAKNESS ADDED TO UNCERTAINTIES ABOUT FRANCE'S INTERESTRATE OUTLOOK IN AMSTERDAM SHARES EASED AS THE BOURSE CONTINUED TO BE DOMINATED BY THE BOND MARKET AND WAS PRESSURED TOO BY A WEAKER DOLLAR AND WALL STREET'S UNSTEADY START IN MILAN STOCKS FELL AFTER AN EARLY RALLY LOST STEAM INDICATING THE RECENT CONSOLIDATION FOLLOWING BIG GAINS HADN'T ENDED THOUGH SENTIMENT REMAINED POSITIVE IN MADRID THE MARKET DROPPED TO A 1994 RECORD LOW PRICES DRIFTED DOWN IN LINE WITH MANY OTHER EUROPEAN BOURSES AND SLIPPED FURTHER AFTER NEW YORK STOCKS POSTED EARLY LOSSES IN STOCKHOLM EQUITIES FELL AS INCREASES IN SWEDISH LENDING RATES REMAINED A TROUBLING FACTOR IN ZURICH STOCKS DECLINED AS UNEASINESS CONTINUED TO GRIP THE MARKET AND PUT PRESSURE ON FINANCIAL ISSUES IN BRUSSELS PRICES ENDED LITTLE CHANGED DESPITE A CUT BY THE BELGIAN CENTRAL BANK IN A SHORTTERM LENDING RATE AS INVESTORS NOTED LONGTERM RATES HAVE GONE HIGHER IN MEXICO CITY STOCKS' DEEP DROP TOOK THE MARKET DOWN TO LEVELS PRIOR TO THE NORTH AMERICAN FREE TRADE AGREEMENT WHEN EQUITIES WERE PLAGUED BY ECONOMIC UNCERTAINTY ABOUT LAST NOVEMBER'S US CONGRESSIONAL VOTE ON THE PACT WITH MEXICO AND CANADA YESTERDAY THE RATE FOR MEXICO'S 28DAY TREASURY BILL OR CETES SOARED TO 18 FROM 1458 AT THE CENTRAL BANK'S WEEKLY AUCTION MEXICO'S PRIMARY RATES HAVE JUMPED ALMOST 10 SINCE MIDFEBRUARY STOCKS ALSO HAVE BEEN WHACKED BY INCREASES IN US RATES A REBEL UPRISING IN MEXICO AND THE ASSASSINATION OF A PRESIDENTIAL CANDIDATE AS WELL AS POOR CORPORATE EARNINGS IN SYDNEY THE MAIN INDEX FELL TO ITS LOWEST LEVEL SINCE EARLY LAST DECEMBER IN A CONTINUING MARKET DECLINE IN REACTION TO MONDAY'S RISE IN US INTEREST RATES AND TO A DROP IN THE PRICE OF GOLD WHICH PUSHED GOLD SHARES DOWN IN HONG KONG SHARES RETREATED FOR THE FIFTH STRAIGHT SESSION AS PROPERTY STOCKS CONTINUED TO PERFORM WORSE THAN THE BROADER MARKET IN THE WAKE OF THE US RATE BOOST AND ON CAUTION ABOUT THE HONG KONG GOVERNMENT'S PLAN TO REDUCE REAL ESTATE PRICES THE POSSIBILITY THAT HONG KONG BANKS WILL COPY THE US MONETARY TIGHTENING CAST A PALL OVER THE MARKET IN SINGAPORE SHARES ENDED MOSTLY HIGHER IN THIN TRADING WITH RESILIENCE AMID THE GLOBAL LENDINGRATE SCENARIO THOUGH WALL STREET'S CONTINUED VOLATILITY STILL HURT SENTIMENT IN KUALA LUMPUR STOCKS ROSE FOLLOWING LATE BARGAINHUNTING AFTER A DAY OF TRADING WITHIN A TIGHT RANGE AMID CAUTIOUS BUT FIRM SENTIMENT IN SEOUL STOCKS FELL FOR THE THIRD DAY IN A ROW ON CONCERNS THAT THE MARKET COULD LOSE MORE LIQUIDITY BUYING EMERGED BRIEFLY ON RUMORS THAT NORTH KOREA'S LEADER WAS WILLING TO MEET SOUTH KOREAN AND US LEADERS TO SETTLE NUCLEAR ISSUES BUT THE MARKET TURNED BEARISH WHEN THE RUMORS APPEARED GROUNDLESS IN TAIPEI SHARES ROSE AFTER JUMPING ON NEWS THAT THE ONLY MARGIN FINANCING COMPANY IN TAIWAN LIFTED ITS LID ON LOANS THEN FALLING ON PROFITTAKING DATA THAT SHOWED TAIWAN'S EXPORT ORDERS ROSE ONLY SLIGHTLY IN MARCH REMINDED THE MARKET THAT THE US ECONOMY IS RECOVERING SLOWLY AND THAT A RECOVERY IN TAIWAN WILL BE EVEN SLOWER COMING IN MANILA EQUITIES GAINED FOR THE SIXTH STRAIGHT SESSION DRAWING STRENGTH FROM BETTERTHANEXPECTED FIRSTQUARTER CORPORATE RESULTS SOME INVESTORS BELIEVED THE BOURSE'S PROLONGED RISE COULD SIGNAL THAT LAST YEAR'S BULL MARKET HAS RETURNED 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 9404210125 940421 ECONOMY CATERPILLAR AIDED BY ECONOMY'S GAINS POSTS PROFIT SURGE BUT STOCK FALLS 45 BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL CONTINUED STRENGTH IN THE US ECONOMY HELPED CATERPILLAR INC POST ITS BEST FIRST QUARTER EVER BUT WALL STREET SPOILED THE PARTY BY PUNISHING THE COMPANY'S STOCK ALONG WITH THOSE OF OTHER CYCLICAL COMPANIES AIDED BY IMPROVEMENTS IN SALES MARKET SHARE AND PRICES THE PEORIA ILL CONSTRUCTIONEQUIPMENT MAKER SAID PROFIT SURGED MORE THAN FIVEFOLD TO 192 MILLION OR 189 A SHARE FROM 34 MILLION OR 34 CENTS A SHARE A YEAR EARLIER SALES JUMPED 22 TO 329 BILLION FROM 27 BILLION THE RESULTS HANDILY BEAT ANALYSTS' ESTIMATES BUT WEREN'T ENOUGH TO EASE INVESTORS' CONCERNS RISING INTEREST RATES WILL CURB THE ECONOMIC RECOVERY CATERPILLAR'S SHARES TUMBLED 4875 OR 45 TO 10350 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING DRAGGING DOWN THE DOW JONES INDUSTRIAL AVERAGE AS WELL AS OTHER CYCLICAL SHARES CATERPILLAR'S EARNINGS REPORT CAME ON THE TWOYEAR ANNIVERSARY OF CATERPILLAR'S DEFEAT OF A STRIKE BY THE UNITED AUTO WORKERS UNION THAT CONTRACT DISPUTE IS STILL UNRESOLVED AND THERE ARE RUMBLINGS AT UAW LOCALS THAT IT'S TIME FOR ANOTHER STRIKE BUT ANALYSTS NOTED THAT SUCH TALK AND EVEN MINOR WALKOUTS IN RECENT MONTHS HAVEN'T HURT THE COMPANY'S STOCK JAMES OWENS CHIEF FINANCIAL OFFICER SAID AT A PEORIA NEWS CONFERENCE THAT HE WAS SURPRISED BY THE STOCKPRICE DROP AND HAD NO EXPLANATION FOR IT ANALYSTS SAID THEY TOO SAW NOTHING IN CATERPILLAR'S REPORT TO PROMPT SUCH A SELLOFF AS SOON AS PEOPLE THINK WE'RE CLOSE TO PEAK CYCLICAL EARNINGS PEOPLE SELL STOCKS SAID MITCHELL QUAIN WHO FOLLOWS INDUSTRIALEQUIPMENT COMPANIES FOR WERTHEIM SCHRODER & CO IN NEW YORK BUT LIKE OTHER ANALYSTS MR QUAIN SAID HE THINKS CATERPILLAR IS FAR FROM ITS EARNINGS PEAK AS INTERNATIONAL ECONOMIES RECOVER MR QUAIN THINKS THE COMPANY CAN EASILY EARN 8 A SHARE THIS YEAR AND TWICE THAT BEFORE THE CURRENT UPTURN ENDS CATERPILLAR SAID ITS OUTLOOK HASN'T CHANGED SINCE MARCH 17 WHEN ITS STOCK SURGED ON ITS STATEMENT THAT THE US AND EUROPEAN ECONOMIES WERE STRONGER THAN IT EXPECTED AT THE BEGINNING OF THE YEAR MR OWENS THE CHIEF FINANCIAL OFFICER ALSO SAID THE RECENT INCREASES IN INTEREST RATES ARE MODEST ENOUGH SO FAR THAT THEY HAVEN'T HURT SALES AT THE SAME TIME MR OWENS SAID THE COMPANY CONTINUES TO EMPHASIZE CONTROLLING COSTS SO THAT CATERPILLAR CAN BE PROFITABLE THROUGH BUSINESS CYCLES OF THE FUTURE ELI LUSTGARTEN OF PAINEWEBBER INC SAID THAT FEAR OF HIGHER INTEREST RATES AND SLOWER ECONOMIC GROWTH IS BATTERING CYCLICAL COMPANIES SUCH AS CATERPILLAR ALTHOUGH MR LUSTGARTEN STUCK TO A NEGATIVE VIEW OF CATERPILLAR STOCK EVEN AS IT ROSE TO NEW HIGHS HE SAID THE RECENT DECLINE FROM A HIGH OF 12150 MEANS IT DOESN'T LOOK OVERPRICED ANY MORE CATERPILLAR'S CONTINUING BOOM IS A BIG CHANGE FROM TWO YEARS AGO WHEN THE INDUSTRY SLUMP WAS SO DEEP THAT THE COMPANY SAID IT DIDN'T NEED ALL THE UAW WORKERS WHO QUIT THE STRIKE AFTER THE COMPANY THREATENED TO REPLACE THEM PERMANENTLY CATERPILLAR EVENTUALLY TOOK THEM BACK AND IS EVEN HIRING MORE THIS SPRING BUT TENSIONS IN THE FACTORIES ARE HIGH AND RELATIONS WITH THE COMPANY ARE NO DOUBT AT AN ALLTIME LOW SAID JERRY BROWN PRESIDENT OF THE HUGE UAW LOCAL IN PEORIA WORKERS ARE JUST FED UP WITH THE WAY THE COMPANY IS TREATING THEM AND A STRIKE IS ALWAYS A POSSIBILITY THE UNION CITED 82 UNFAIRLABORPRACTICE COMPLAINTS ISSUED AGAINST CATERPILLAR BY THE NATIONAL LABOR RELATIONS BOARD IN THE LONGRUNNING LABOR DISPUTE THE COMPANY NOTED THAT DECISIONS HAVEN'T BEEN ISSUED AND DENIED IT HAS BROKEN THE LAW 9404210124 940421 MARKETING & MEDIA MAGAZINE EDITORS GIVE THREE AWARDS FOR '93 TO HARPER'S BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BIGGEST WINNER OF THE 1993 NATIONAL MAGAZINE AWARDS WAS HARPER'S MAGAZINE WHICH WON THREE AWARDS FOR FEATURE WRITING FICTION AND ESSAYS THE AMERICAN SOCIETY OF MAGAZINE EDITORS SAID IT BELIEVES THIS IS ONLY THE SECOND TIME A MAGAZINE WON A TRIPLE THE FIRST WAS ATLANTIC MONTHLY IN 1988 HARPER'S PUBLISHED BY THE NONPROFIT HARPER'S MAGAZINE FOUNDATION HAS WON SEVEN AWARDS SINCE THE AWARDS BEGAN IN 1966 THE OTHER BIG WINNER WAS HEALTH MAGAZINE PUBLISHED BY TIME INC VENTURES WHICH WON TWO AWARDS IT WAS HONORED FOR GENERAL EXCELLENCE AMONG MAGAZINES WITH A CIRCULATION BETWEEN 400000 AND ONE MILLION AND IT WON FOR A SINGLETOPIC ISSUE CALLED FOR OUR PARENTS THE TIME WARNER INC MAGAZINE FORMERLY KNOWN AS HIPPOCRATES WAS FOUNDED IN 1987 IN THE CATEGORY OF MAGAZINES WITH CIRCULATIONS OVER ONE MILLION MCGRAWHILL INC'S BUSINESS WEEK WON AFTER BEING NOMINATED IN THE CATEGORY FOR THE THIRD YEAR IN A ROW IT FEELS GOOD TO FINALLY WIN THE DARN THING SAID EDITOR IN CHIEF STEPHEN B SHEPARD WHO JUST FINISHED A TWOYEAR TERM AS PRESIDENT OF THE MAGAZINE EDITORS' GROUP THE MOST OBSCURE MAGAZINE TO WIN A MAJOR AWARD WAS PRINT A MAGAZINE FOR GRAPHIC ARTISTS THAT WON FOR GENERAL EXCELLENCE AMONG MAGAZINES WITH UNDER 100000 SUBSCRIBERS FOUNDED IN 1940 THE MAGAZINE IS THE SINGLE TITLE OWNED BY RC PUBLICATIONS INC OF ROCKVILLE MD MARTIN FOX WHO HAS BEEN THE MAGAZINE'S EDITOR FOR 25 YEARS SAID ON ACCEPTING THE AWARD YOU MADE OUR DAY YOU MADE OUR CENTURY WIRED A HOT MAGAZINE ABOUT CYBERSPACE JUST IN ITS SECOND YEAR WON FOR GENERAL EXCELLENCE FOR MAGAZINES WITH CIRCULATION BETWEEN 100000 AND 400000 ADVANCE PUBLICATIONS INC'S NEW YORKER WHICH HAS WON THE MOST AWARDS OVER TIME WAS NOMINATED FOR FIVE AWARDS BUT JUST WON ONE FOR REPORTING THE AWARD WAS FOR A TWOPART SERIES INVESTIGATING A CASE OF ALLEGED SATANIC RITUAL ABUSE OTHER WINNERS INCLUDED TIME INC'S FORTUNE FOR PERSONAL SERVICE FOR A FIRSTPERSON ARTICLE ABOUT PROSTATE CANCER OUTSIDE MAGAZINE WON IN THE SPECIAL INTERESTS CATEGORY FOR THREE ARTICLES ON THE PURSUIT OF PHYSICAL PROWESS WHILE PHILADELPHIA MAGAZINE WON FOR PUBLIC INTEREST WITH AN ARTICLE CALLED LESS THAN ONE PERCENT ABOUT A DRUG'S DANGEROUS SIDE EFFECTS THE DESIGN AWARD WENT TO ALLURE PUBLISHED BY ADVANCE'S CONDE NAST AND THE PHOTOGRAPHY PRIZE WAS GIVEN TO MARTHA STEWART'S LIVING PUBLISHED BY TIME INC VENTURES THE WINNERS WERE SELECTED FROM A RECORD 1395 ENTRIES FROM 333 MAGAZINES 9404210123 940421 TECHNOLOGY & HEALTH FIVE TECHNOLOGY CONCERNS TO COOPERATE ON INTERACTIVEVIDEO SYSTEM STANDARDS BY BART ZIEGLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FIVE TECHNOLOGY COMPANIES FORMED WHAT MAY BE THE FIRST ALLIANCE TO OFFER A SOUPTONUTS SYSTEM FOR INTERACTIVE VIDEO NETWORKS HOPING TO TAKE THE LEAD IN SHAPING EMERGING INDUSTRY STANDARDS THE CONSORTIUM CONSISTING LARGELY OF CABLEINDUSTRY OUTSIDERS COULD CHALLENGE GENERAL INSTRUMENT CORP WHICH MAY HAVE THE BEST CHANCE OF IMPOSING ONE KEY STANDARD BECAUSE IT DOMINATES THE TVSETTOPBOX MARKET THE FIVE COMPANIES DIGITAL EQUIPMENT CORP BROADBAND TECHNOLOGIES INC COMPRESSION LABS INC MICROWARE SYSTEMS CORP AND PHILIPS CONSUMER ELECTRONICS CO ARE JOINING AT A TIME OF MUCH UNCERTAINTY ABOUT HOW THE VAST ARRAY OF INTERACTIVE EQUIPMENT WILL WORK TOGETHER VARIOUS PIECES ARE BEING DEVELOPED BY MYRIAD COMPANIES AND THERE ISN'T ANY GUARANTEE THE PARTS WILL BE COMPATIBLE THE CONSORTIUM MAY EVEN BID JOINTLY FOR CONTRACTS FROM CABLE AND PHONE COMPANIES ALTHOUGH THAT ISN'T A PRIMARY GOAL SAID SALIM AL BHATIA CHIEF EXECUTIVE OF BROADBAND TECHNOLOGIES INSTEAD THEIR COOPERATION SHOULD ENABLE THEIR GEAR TO COMMUNICATE SEAMLESSLY WHICH COULD SPEED THE CONSTRUCTION OF THE TWOWAY INFORMATION NETWORKS MR BHATIA SAID WHILE A FEW STANDARDS EXIST A NUMBER OF TECHNICAL ISSUES HAVEN'T BEEN WORKED OUT AND EQUIPMENT MAKERS INCLUDING GI HAVE BEEN DEVISING PROPRIETARY SOLUTIONS ORACLE SYSTEMS CORP FOR INSTANCE IS WORKING WITH NCUBE CORP AND BELL ATLANTIC CORP TO DEVISE VIDEO SERVERS TO STORE MOVIES AND TV SHOWS MICROSOFT CORP IS DEVELOPING ITS OWN TECHNOLOGY FOR MANY PIECES OF INFOMATIONHIGHWAY SYSTEMS MR BHATIA SAID THE FIVE COMPANIES BY CONTRAST WILL MAKE THEIR SOLUTIONS TO THESE PROBLEMS AVAILABLE TO OTHER EQUIPMENT MAKERS IN THE INDUSTRY WHILE ALSO FOLLOWING NEW STANDARDS AS THEY ARISE MR BHATIA SAID HE THOUGHT IT WAS THE FIRST ALLIANCE TO OFFER AN ENDTOEND SYSTEM FOR INTERACTIVE VIDEO ALTHOUGH THE MEMBERS REMAIN FREE TO WORK WITH COMPETITORS AMONG THE FIVE FIRMS BROADBAND RALEIGH NC MAKES EQUIPMENT THAT SENDS VIDEO AND PHONE CALLS TO HOMES OVER FIBEROPTIC LINES COMPRESSION LABS SAN JOSE CALIF MAKES EQUIPMENT THAT COMPRESSES DIGITAL VIDEO SIGNALS DIGITAL THE BIG MINICOMPUTER MAKER BASED IN MAYNARD MASS IS WORKING ON COMPUTERS THAT STORE DIGITAL VIDEO MICROWARE DES MOINES IOWA MAKES SOFTWARE FOR TVSETTOP CONTROL BOXES SUCH AS THOSE MADE BY PHILIPS A UNIT OF PHILIPS NV OF THE NETHERLANDS SEPARATELY GENERAL INSTRUMENT SAID YESTERDAY THAT IT HAD FINALIZED AN AGREEMENT WITH DSC COMMUNICATIONS CORP TO JOINTLY BUILD TECHNOLOGY THAT WILL ALLOW CABLE SYSTEMS TO SEND PHONE CALLS AND VIDEO OVER THEIR NETWORKS THE TECHNOLOGY ALSO COULD BE USED BY PHONE COMPANIES THAT WANT TO ENTER THE VIDEO BUSINESS 9404210122 940421 WHO'S NEWS FIRST CITIZENS FINANCIAL CORP FIRST CITIZENS FINANCIAL CORP SILVER SPRING MD HERBERT W JORGENSEN 65 YEARS OLD WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS BANK HOLDING COMPANY AND ITS CITIZENS SAVINGS BANK SUBSIDIARY MR JORGENSEN SUCCEEDS STANLEY BETTS 69 WHO WILL FINISH OUT HIS TERM AS A DIRECTOR MR JORGENSEN PREVIOUSLY SERVED AS OUTSIDE GENERAL COUNSEL VICE CHAIRMAN AND A DIRECTOR FOR BOTH BANKING CONCERNS 9404210121 940421 WHO'S NEWS SOUTHWEST NATIONAL CORP SOUTHWEST NATIONAL CORP GREENSBURG PA THIS BANKHOLDING COMPANY NAMED THREE DIRECTORS AND INCREASED ITS BOARD SIZE TO 12 NAMED TO THE BOARD WERE RICHARD KACIN 55 YEARS OLD PRESIDENT OF A RICHARD KACIN INC A REAL ESTATE AND CONSTRUCTION FIRM TIMOTHY T REESE 43 CHAIRMAN AND CHIEF EXECUTIVE OF OVERLY MANUFACTURING CO AN ARCHITECTURAL METALPRODUCTS MAKER AND LAURIE STERN SINGER 42 PRESIDENT OF ALLEGHENY VALLEY DEVELOPMENT CORP JOSEPH L BAIR 67 THE COMPANY'S CHAIRMAN AND CHAIRMAN OF ITS BOARD AND GUY E BUBB 72 RETIRED FROM THE BOARD THE COMPANY SAID IT DOESN'T PLAN TO NAME A SUCCESSOR TO MR BAIR 9404210120 940421 HUMAN GENOME AND GENENTECH ROCKVILLE MD HUMAN GENOME SCIENCES INC SAID IT GRANTED TO GENENTECH INC AN EXCLUSIVE OPTION TO LICENSE A RECENTLY DISCOVERED HUMAN GENE IT CALLS HEART/LUNG SELECTIVE DNASE GENENTECH OF SOUTH SAN FRANCISCO CALIF WILL TEST THE GENE TO DETERMINE IF IT PROVIDES ADVANTAGES OVER THE GENE GENENTECH USES IN A DRUG TO TREAT CYSTIC FIBROSIS 9404210119 940421 IF YOU LIKE ZEIGLETICS LET US TELL YOU ABOUT THE BRIDGE IN BROOKLYN BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL LAST MONTH A HOT STOCK TIP APPEARED ON PRODIGY'S MONEY TALK BULLETIN BOARD ZEIGLETICS TRADES ON THE HALIFAX CANADIAN EXCHANGE AT 37 CENTS TO 39 CENTS A HUGE BARGAIN THAT'S BECAUSE THE COMPANY HAS INTRODUCED PORTABLE TOILETS ZEIGLOPOTS BATHROOM DEODORANTS AND OTHER SEPTIC ACCESSORIES TO EASTERN AFRICA SPECIFICALLY CHAD SOUNDS PRETTY UNUSUAL HUH ACTUALLY THIS SORT OF TIP WASN'T THAT UNUSUAL WHEN COMPARED WITH OTHER STOCK TOUTS THAT HAVE BEEN APPEARING ON THE BULLETIN BOARD SINCE DECEMBER PENNYSTOCK PROMOTERS HAVE USED PRODIGY TO HYPE STOCKS WITH MESSAGES FULL OF EXCLAMATION POINTS AND HINTS OF INSIDER CONNECTIONS ONE OF THE HIGHLY TOUTED STOCKS WYE RESOURCES OWNER OF A DIAMOND MINE IN ZAIRE WAS ORDERED SUSPENDED FROM TRADING EARLIER THIS YEAR BY THE ONTARIO SECURITIES COMMISSION FOR FAILING TO FILE AN EXPLANATION OF A 62 INCREASE IN ITS NUMBER OF SHARES OUTSTANDING A MORE RECENT PICK IS ITP THERMAL PACKAGING A VANCOUVERLISTED COMPANY THAT MAKES AUTOMATIC COOLANTS FOR CANNED SOFT DRINKS THE PITFALLS OF PENNY STOCKS PROMPTED SOME PRODIGY USERS TO TRY TO DEFLATE THE HYPERBOLE BUT THEIR EFFORTS WERE MET WITH SAVAGE COUNTERATTACKS ON THE BULLETIN BOARD SO INVESTMENT ADVISER DAVID GARDNER OF ALEXANDRIA VA TRIED A DIFFERENT TACK PARODY HE INVENTED A COMPANY ZEIGLETICS AN EXCHANGE HALIFAX A STOCK SYMBOL ZEIG H AND A STOCK EXPERT JOEY ROMAN ACCORDING TO THE PRESIDENT OF ZEIGH IN AFRICA THE NAME ZEIGLETICS IS VIRTUALLY SYNONYMOUS WITH TOILETS MR ROMAN BRAGGED THEY RECENTLY SPONSORED THE SUDANESE EQUIVALENT OF THE BOSTON MARATHON WHERE HUNDREDS OF FANS WERE WAVING PLUNGERS AT THE FINISH LINE CHAD IS AT THE DAWN OF ITS SEPTIC AGE AND ZEIGLETICS IS THE ONLY PLAYER IN THE REGION TO MR GARDNER'S AMAZEMENT SOME PRODIGY USERS BEGAN CLAMORING FOR MORE INFORMATION ONCE THEY FIGURED OUT HE WAS MAKING IT UP THE MESSAGES GOT UGLY BUT NOT AS UGLY AS THE ONES FROM THE HYPESTERS HE WAS MAKING FUN OF YOU MAY THINK YOU CAN HIDE BEHIND YOUR KEYBOARD TAKE CARE THE WORLD CAN BE A REAL UNSAFE ENVIRONMENT SAID ONE SINCE THE THREATS MR GARDNER AND HIS BROTHER HAVE GONE BACK TO GIVING STRAIGHT INVESTMENT ADVICE IN THEIR MONTHLY NEWSLETTER THE MOTLEY FOOL THE NEXT TIP DON'T BUY ZEIGLETICS 9404210118 940421 WHO'S NEWS CITFED BANCORP INC CITFED BANCORP INC DAYTON OHIO WILLIAM M VICHICH 46 YEARS OLD EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WAS NAMED TO THE ADDITIONAL AND NEW POST OF CHIEF OPERATING OFFICER OF THIS BANK HOLDING COMPANY AND OF ITS CITIZENS FEDERAL BANK UNIT IN ADDITION MARY L LARKINS 46 SENIOR VICE PRESIDENT OF CITIZENS FEDERAL BANK WAS NAMED PRESIDENT OF THE COMPANY'S CITFED MORTGAGE CORP OF AMERICA UNIT SUCCEEDING JERRY L KIRBY MS LARKINS HAD PREVIOUSLY BEEN EXECUTIVE VICE PRESIDENT OF THE MORTGAGE UNIT SHE RETAINS HER POST AT CITIZENS FEDERAL MR KIRBY 59 WHO IS CHAIRMAN AND PRESIDENT OF THE HOLDING COMPANY AND PRESIDENT AND CHAIRMAN OF CITIZENS FEDERAL BANK WILL CONTINUE AS CHAIRMAN OF THE CITFED MORTGAGE UNIT 9404210117 940421 ARDEN AGREES TO BE ACQUIRED LAKEVILLE MINN ARDEN INTERNATIONAL KITCHENS INC SAID IT AGREED IN PRINCIPLE TO BE ACQUIRED FOR 4 A SHARE OR AN INDICATED 121 MILLION BY CLOSELY HELD SCHREIBER FOODS INC OF GREEN BAY WIS THE MAKER OF FROZENFOOD PRODUCTS SAID THE TRANSACTION IS SUBJECT AMONG OTHER THINGS TO EXECUTION OF A DEFINITIVE MERGER AGREEMENT AND APPROVAL BY ITS SHAREHOLDERS THE COMPANY SAID IT HOPES THE TRANSACTION CAN CLOSE IN AUGUST THE NEWS WAS DISCLOSED AFTER THE MARKET'S CLOSE IN NASDAQ STOCK MARKET TRADING ARDEN ROSE 375 CENTS TO 2375 9404210116 940421 TECHNOLOGY AND HEALTH CDC PROGRAM WILL ALERT DOCTORS TO NEW DISEASES ATLANTA THE US CENTERS FOR DISEASE CONTROL AND PREVENTION WILL UNVEIL A NATIONWIDE PLAN TOMORROW TO ALERT DOCTORS WHEN DANGEROUS NEW DISEASES ARE ABOUT TO STRIKE THE PLAN WHICH CARRIES A PRICE TAG OF BETWEEN 75 MILLION AND 125 MILLION INTEGRATES STATE HEALTH DEPARTMENTS PHYSICIAN DATABASES AND PUBLICHEALTH AGENCIES TO MOVE QUICKLY TO IDENTIFY EMERGING NEW DISEASES JAMES HUGHES DIRECTOR OF THE CDC'S NATIONAL CENTER FOR INFECTIOUS DISEASES SAID THE CDC HOPES TO GET FUNDING FOR THE PLAN FROM A VARIETY OF AVENUESINCLUDING INTERNATIONAL HEALTH AGENCIES CONGRESS AND STATE AND LOCAL HEALTH BUDGETS THE PLAN'S GOALS INCLUDE STRENGTHENING DISEASE SURVEILLANCE OPENING CENTERS NATIONWIDE TO FIGHT NEW INFECTIONS AND TO DISCOVER TESTS TO DIAGNOSE THEM AND IMPROVING PUBLIC HEALTH LABORATORIES 9404210115 940421 TECHNOLOGY PROFITS RISE FURTHER FOR EQUIPMENT FIRMS SERVING CHIP MAKERS A WALL STREET JOURNAL NEWS ROUNDUP MAKERS OF FACTORY EQUIPMENT FOR THE SEMICONDUCTOR INDUSTRY CONTINUED TO SEE EARNINGS BENEFIT FROM A BOOM IN CAPITAL INVESTMENT BY CHIP MAKERS IN THE LATEST QUARTER LAM RESEARCH CORP FREMONT CALIF REPORTED A 75 INCREASE IN NET INCOME TO 95 MILLION OR 39 CENTS A SHARE FOR ITS FISCAL THIRD QUARTER ENDED MARCH 31 UP FROM 55 MILLION OR 23 CENTS A SHARE A YEAR EARLIER SALES ROSE 82 TO 1258 MILLION FROM 692 MILLION SILICON VALLEY GROUP INC SAN JOSE CALIF REPORTED NET INCOME OF 47 MILLION OR 23 CENTS A SHARE IN ITS FISCAL SECOND QUARTER ENDED MARCH 31 A TENFOLD INCREASE FROM ITS YEAREARLIER NET OF 441000 OR ONE CENT A SHARE SALES ROSE 65 TO 853 MILLION FROM 516 MILLION GENUS INC SUNNYVALE CALIF HAD FIRSTQUARTER INCOME OF 652000 OR FIVE CENTS A SHARE REVERSING A YEAREARLIER NET LOSS OF 59 MILLION OR 49 CENTS A SHARE SALES MORE THAN TRIPLED TO 138 MILLION FROM 4 MILLION THE THREE COMPANIES HAVE SEEN SALES OF THEIR CHIPMAKING EQUIPMENT GROW SHARPLY AS CHIP MAKERS WORLDWIDE SCRAMBLE TO COPE WITH A SHORTAGE OF CHIP CAPACITY BY EXPANDING THEIR FACTORIES AND BUILDING NEW ONES 9404210114 940421 WHO'S NEWS ADVANTAGE HEALTH CORP ADVANTAGE HEALTH CORP WOBURN MASS MICHAEL CURRAN RESIGNED AS PRESIDENT AND CHIEF OPERATING OFFICER FOR PERSONAL HEALTH REASONS DR CURRAN WILL CONTINUE WITH THE COMPANY AS A CONSULTANT AND AS A DIRECTOR RAYMOND J DUNN CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL ASSUME THE RESPONSIBILITIES AND TITLE OF PRESIDENT OF THIS MEDICAL REHABILITATION CHAIN 9404210113 940421 FOREIGN EXCHANGE DOLLAR FALLS AS GERMANY CUTS RATE POUND RISES ON POSITIVE ECONOMIC DATA BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR SANK YESTERDAY GETTING NO HELP FROM YET ANOTHER GERMAN INTEREST RATE CUT NOR FROM A BEVY OF PRESENT AND PAST FEDERAL RESERVE GOVERNORS WHO HASTENED TO DEFEND RECENT TIGHTENING OF US MONETARY POLICY THE POUND WAS A BIG WINNER HOWEVER GATHERING STRENGTH FROM A SPATE OF UNITED KINGDOM ECONOMIC DATA SHOWING A REVVING ECONOMIC ENGINE AND QUASHING MARKET SPECULATION OF AN IMMINENT RATE CUT BY THE BANK OF ENGLAND LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16883 MARKS DOWN FROM 16997 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10303 YEN DOWN FROM 10305 YEN STERLING WAS TRADING AT 14935 UP FROM 14815 ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 103 YEN AND AT 16900 MARKS TRADERS SAID THE MARKET APPEARS TO BE REWARDING GERMANY FOR STIMULATING ITS ECONOMY BY CUTTING INTEREST RATES WHILE FOCUSING AWAY FROM REWARDS TO BE HAD FROM HIGHER INTEREST RATES IN THE US FOLLOWING THE FED'S LATEST TIGHTENING MOVE ON MONDAY THE BUNDESBANK EARLY IN EUROPEAN TRADING ANNOUNCED ITS LATEST AND LARGEST CUT IN SECURITIES REPURCHASE OR REPO RATES SINCE IT BEGAN A NEW ROUND OF REPO EASINGS IN FEBRUARY THE GERMAN CENTRAL BANK CUT REPOSITS MAIN INSTRUMENT FOR INFLUENCING MONEY MARKETS BY 12 BASIS POINTS TO 558 BUT JUST AS ON MONDAY WHEN THE FED RAISED SHORTTERM RATES BY 25 BASIS POINTS THE DOLLAR WAS UNABLE TO MAKE ADVANCES ON THE CONTINUING CONVERGENCE OF US AND GERMAN RATES THE MARKET HAS ACCEPTED THE FACT THAT WE'LL SEE LOWER RATES ACROSS THE BOARD IN EUROPE SAID KEN NIXON CORPORATE SALES OFFICER AT HARRIS TRUST & SAVINGS BANK IN NEW YORK ACCORDING TO MR NIXON CURRENCY MARKETS ARE ANTICIPATING THAT LOWER INTEREST RATES WILL GIVE FLAGGING EUROPEAN ECONOMIES THE CHARGE THEY NEED TO RECOVER BUT IN THE US THE SITUATION IS FAR LESS CLEAR HE SAID AS INVESTORS INCREASINGLY QUESTION THE FED'S POLICY OF MONETARY TIGHTENING AT A TIME WHEN MOST ECONOMISTS BELIEVE THAT THE GREATEST SPURT IN THE US'S ECONOMIC RECOVERY TRANSPIRED IN THE FOURTH QUARTER OF 1993 THERE IS A REAL GRAY AREA IN THE US MR NIXON SAID JUST LOOK AT WHAT'S BEEN HAPPENING IN THE STOCK AND BOND MARKETS SINCE TIGHTENING HAS BECOME THE POLICY FOR THE FED HE ADDED WE SAW GOOD GROWTH IN THE FOURTH QUARTER BUT IT'S NOT SO CLEAR THAT GROWTH WAS THAT STRONG IN THE FIRST QUARTER HE SAID NOTING THAT ECONOMISTS ARE PROJECTING A FURTHER SLOWDOWN IN THE SECOND AND THIRD QUARTERS THE MARKET FOUND LITTLE ASSURANCE IN COMMENTS BY FED GOVERNOR ALFRED BROADDUS AND FORMER GOVERNOR WAYNE ANGELL DEFENDING THE FED'S MONETARY POLICY TIGHTENING AS THE KEY TO SUSTAINED ECONOMIC GROWTH WITH LOW INFLATION MR BROADDUS IN COMMENTS INTENDED TO CALM A JITTERY BOND MARKET SAID THE FED MUST CONTINUE TO REBUILD ITS CREDIBILITY AS AN INFLATION FIGHTER MR ANGELL MEANWHILE SAID THE FED TIGHTENED CREDIT CONDITIONS TO ENSURE THE US ECONOMY DOESN'T EXPAND TOO STRONGLY THE STATEMENTS PROFFERED A STRONG HINT THAT THE FED WILL TIGHTEN ONCE AGAIN AT THE MAY 17 MEETING OF THE FEDERAL OPEN MARKETS COMMITTEE IT'S CLEAR THAT IF THE FED IS MOVING TO PUSH FEDFUNDS RATES INTO A NEUTRAL POLICY FROM AN ACCOMMODATING POLICY THE FED WON'T HOLD TIGHT UNTIL FED FUNDS ARE AT 4 TO 45 MR NIXON SAID THE FEDERALFUNDS RATE IS THE INTEREST RATE LARGE COMMERCIAL BANKS CHARGE OTHER BANKS FOR OVERNIGHT LOANS MR NIXON PREDICTED THAT NOTHING WILL SHOCK THE DOLLAR INTO HIGHER GROUND UNTIL FED FUNDS BEGIN TO BE TARGETED ABOVE 4 UP FROM THE CURRENT 375 TARGET