PFIZER INC AND SCHERINGPLOUGH CORP POSTED HIGHER FIRSTQUARTER EARNINGS AND SALES REFLECTING STRENGTH IN NEW PRODUCTS BRISTOLMYERS SQUIBB CORP REPORTED A NARROW GAIN IN RESULTS AS GROWTH IN DRUG SALES WAS OFFSET BY A DECLINE IN CONSUMERPRODUCTS REVENUE MOST OF THE GAINS AT ALL THREE COMPANIES CAME FROM INCREASED UNIT SALES NOT PRICE INCREASES AS BIG PHARMACEUTICAL COMPANIES BATTLE FOR THEIR SHARE OF A PRICESENSITIVE MARKETPLACE IN ADDITION THE EFFECTS OF CURRENCY EXCHANGE AND HIGHER US TAX RATES DAMPED EARNINGS GROWTH PFIZER AND SCHERINGPLOUGH RESULTS EXCEEDED WALL STREET'S DIMINISHED EXPECTATIONS FOR THE ONCEHIGHFLYING DRUG INDUSTRY WHILE BRISTOLMYERS CAME IN ON TARGET WE'RE LOOKING AT COMPANIES THAT ARE SLIGHTLY EXCEEDING MOREMODEST EXPECTATIONS SAID RONALD NORDMANN ANALYST AT PAINEWEBBER INC AT EACH COMPANY GROWTH IN PERSHARE EARNINGS OUTPACED THE RISE IN NET INCOME AS THE COMPANIES HAVE SET UP BUYBACK PROGRAMS FOR THEIR SHARES DRUG INDUSTRY STOCKS GENERALLY ARE TRADING AT THEIR LOWEST LEVELS IN RECENT YEARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY PFIZER SHARES JUMPED 2 TO 5775 SCHERINGPLOUGH ROSE 375 CENTS TO 58125 AND BRISTOLMYERS CLOSED AT 5225 UNCHANGED PFIZER'S NET INCOME ROSE 13 BUT WOULD HAVE RISEN 58 IF THE EFFECTS OF A RESTRUCTURING CHARGE IN THE YEAR EARLIERQUARTER WERE EXCLUDED SALES WERE UP 62 TO 198 BILLION FROM 187 BILLION A YEAR EARLIER SALES OF NORVASC A NEW CALCIUMCHANNEL BLOCKER MORE THAN DOUBLED TO 154 MILLION WHILE SALES OF THE ANTIBIOTIC ZITHROMAX INCREASED 17 TO 47 MILLION DESPITE DECLINES IN SOME OVERSEAS MARKETS MR NORDMANN SAID PROCARDIA XL A HEART DRUG GAINED ALMOST 1 PFIZER SAID THOSE GAINS WERE TEMPERED BY A SHARP DECLINE FOR FELDENE AN ANTIINFLAMMATORY THAT HAS BEEN BATTERED BY GENERIC COMPETITORS SCHERINGPLOUGH NET ALMOST DOUBLED BUT WOULD HAVE RISEN 13 IF THE EFFECTS OF AN ACCOUNTING CHANGE IN THE 1993 QUARTER WERE EXCLUDED SALES INCREASED 66 TO 116 BILLION FROM 109 BILLION THE COMPANY SAID THE RESULTS WERE AIDED BY STRONG GAINS IN SALES OF CLARITIN A NONSEDATING ANTIHISTAMINE AND PROVENTIL WHICH WAS BOLSTERED BY A STRONG FLU SEASON AND PROBLEMS SUFFERED BY A GENERIC COMPETITOR NET AT BRISTOLMYERS INCREASED 11 ON A 28 RISE IN SALES TO 283 BILLION FROM 276 BILLION US DRUG SALES WERE ESPECIALLY STRONG MR NORDMANN SAID THANKS IN PART TO STRONG SALES TO THE MANAGEDCARE COMMUNITY OF ITS CHOLESTEROLLOWERING REMEDY PRAVOCHOL AND OTHER PRODUCTS BUT A 14 DECLINE IN OVERTHECOUNTER PAINRELIEVERS HELPED OFFSET THOSE GAINS MR NORDMANN SAID 9404210111 940421 WHO'S NEWS WOOLWORTH HIRES AN INTERIM CHIEF FOR FINANCE POST BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WOOLWORTH CORP STILL SORTING THROUGH AN INTERNAL INVESTIGATION OF ALLEGED ACCOUNTING IRREGULARITIES HIRED AN EXECUTIVE WITH EXPERIENCE IN HELPING TROUBLED COMPANIES WOOLWORTH NAMED ANDREW P HINES 54 YEARS OLD INTERIM CHIEF FINANCIAL OFFICER AND SENIOR VICE PRESIDENT MR HINES MOST RECENTLY WORKED AS A CONSULTANT TO PENTLAND PLC A BRITISH RETAILING AND FINANCIAL COMPANY AND PREVIOUSLY FOR ADIDAS AG THE GERMAN ATHLETICFOOTWEAR AND APPAREL CONCERN AND RJR NABISCO HOLDINGS CORP MR HINES IS AT LEAST FOR NOW REPLACING CHARLES T YOUNG WHO ALONG WITH WILLIAM K LAVIN WOOLWORTH'S CHAIRMAN AND CHIEF EXECUTIVE ON APRIL 3 STEPPED ASIDE TEMPORARILY WHILE THE INVESTIGATION CONTINUES WOOLWORTH THE COUNTRY'S EIGHTHLARGEST RETAILER WAS FORCED TO RESTATE ITS QUARTERLY RESULTS FOR THE PAST FISCAL YEAR AFTER AN INTERNAL INQUIRY REVEALED GROSSMARGIN FIGURES WERE INACCURATELY REPORTED A SPECIAL COMMITTEE OF THE BOARD IS CONTINUING ITS INVESTIGATION OF WHAT THE COMPANY CALLS THE EVENTS THAT RESULTED IN THE RESTATEMENTS THE APPOINTMENT OF MR HINES WHO IS WELL REGARDED MAKES IT MORE UNLIKELY MR YOUNG WILL RETURN TO WOOLWORTH ACCORDING TO SOURCES CLOSE TO THE BOARD THOUGH THE COMPANY INSISTS MR HINES WAS HIRED ON AN INTERIM BASIS BUT MR HINES'S APPOINTMENT MAY ALSO SIGNAL THE WOOLWORTH BOARD WILL SOON NAME A REPLACEMENT FOR MR LAVIN CURRENTLY JOHN W ADAMS AN OUTSIDER DIRECTOR IS SERVING AS INTERIM CHAIRMAN AND CHIEF EXECUTIVE LAST YEAR MR HINES WORKED AS A CONSULTANT FOR PENTLAND ON SPECIAL PROJECTS RELATED TO US INVESTMENTS FROM 1989 TO 1992 HE WAS EXECUTIVE VICE PRESIDENT OF OPERATIONS AND CHIEF FINANCIAL OFFICER OF ADIDAS USA INC THE SPARTANBURG SCBASED UNIT OF THE GERMAN PARENT AT ADIDAS MR HINES WAS PART OF A TEAM BROUGHT IN BY PETER UEBERROTH'S CONTRARIAN GROUP INC AN INVESTMENT MANAGEMENT COMPANY THAT WAS LARGELY SUCCESSFUL IN TURNING AROUND AN AILING OPERATION BEFORE ADIDAS MR HINES WAS WITH RJR NABISCO OR COMPANIES ASSOCIATED WITH RJR FOR 13 YEARS SERVING IN DOMESTIC AND INTERNATIONAL OPERATIONS IN VARIOUS EXECUTIVE FINANCIAL POSTS 9404210110 940421 TECHNOLOGY & HEALTH FCC ADOPTS RULES FOR AUCTIONING PAGING SERVICES BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PLEDGING TO RAPIDLY DEPLOY A NEW GENERATION OF POCKET PHONES AND OTHER WIRELESS COMMUNICATIONS SERVICES THE FEDERAL COMMUNICATIONS COMMISSION ADOPTED RULES FOR AUCTIONING ADVANCED PAGING AND MESSAGE SERVICES THIS SUMMER IN ADDITION THE COMMISSION ALSO APPROVED RULES FOR AUCTIONING AIRWAVES FOR INTERACTIVE TELEVISION SERVICE THAT WILL LET CONSUMERS OBTAIN INFORMATION PLAY GAMES AND ORDER PRODUCTS AND SERVICES WITH THE CLICK OF A REMOTECONTROL DEVICE THESE AUCTIONS ALSO ARE EXPECTED TO TAKE PLACE THIS SUMMER THE COMMISSION ALREADY HAS AWARDED 18 INTERACTIVE TV LICENSES TWO IN EACH OF THE NATION'S NINE LARGEST CITIES BY LOTTERY BOTH ACTIONS THE FINAL STEPS BEFORE AUCTIONS TAKE PLACE INDICATE THE COMMISSION IS EAGER TO START PARCELING OUT THE AIRWAVES BY COMPETITIVE BIDDING IN A LOT OF DIFFERENT WAYS WE HELPED CLEAR THE WAY FOR INDUSTRY TO CONSTRUCT THE INFORMATION HIGHWAY SAID FCC CHAIRMAN REED HUNDT THE AGENCY HAS BEEN STUNG IN RECENT WEEKS BY CRITICISM THAT IT IS DELAYING SOCALLED PERSONAL COMMUNICATIONS SERVICES INCLUDING EVERYTHING FROM THE PAGING AND MESSAGE SERVICES TO POCKET PHONES THAT WILL COMPETE WITH CELLULAR TELEPHONES AND DATA SERVICES THAT WILL BE DELIVERED OVER HANDHELD COMPUTERS DURING THE NEXT DECADE PERSONAL COMMUNICATIONS SERVICES ARE EXPECTED TO BLOSSOM INTO A MULTIBILLIONDOLLAR INDUSTRY AT YESTERDAY'S MEETING COMMISSION OFFICIALS MADE A SPECIAL POINT OF SAYING THEY WILL BEGIN TO HOLD AUCTIONS FOR OTHER NEW PERSONAL COMMUNICATIONS SERVICES THIS FALL THE COMMISSION YESTERDAY VOTED TO GIVE PREFERENCES IN BIDDING TO SMALL BUSINESSES AND TO COMPANIES OWNED BY WOMEN AND MEMBERS OF MINORITY GROUPS SMALL BUSINESSES WILL BE ALLOWED TO PAY FOR LICENSES IN INSTALLMENTS PAYING INTEREST ONLY FOR THE FIRST TWO YEARS THE COMMISSION ALSO SET UP A 25 BIDDING CREDIT A DISCOUNT OF 25 ON A WINNING BID FOR COMPANIES OWNED BY WOMEN OR MINORITIES IT STOPPED SHORT OF SETTING ASIDE SPECIFIC LICENSES EXCLUSIVELY FOR THESE GROUPS THOUGH COMMISSIONER ANDREW BARRETT WHILE AGREEING WITH THE COMMISSION'S OVERALL DECISION RAISED CONCERNS ABOUT THE BIDDING CREDITS HE ARGUED INSTEAD FOR A MORE FLEXIBLE APPROACH TO BRINGING WOMEN AND MINORITYOWNED COMPANIES INTO THE WINNERS' CIRCLE AMONG OTHER THINGS HE SUGGESTED GIVING DISCOUNTS OF 10 TO 20 TO CONSORTIA THAT INCLUDE WOMEN AND MINORITY COMPANIES FOR THE ADVANCED PAGING AND MESSAGING SERVICES THE COMMISSION SAID IT FIRST WILL AUCTION THE 10 REMAINING NATIONWIDE LICENSES MOBILE TELECOMMUNICATIONS TECHNOLOGY CORP RECEIVED THE FIRST LICENSE A PIONEER'S PREFERENCE IN 1992 FOR INNOVATIVE TECHNOLOGY THE COMPANY WHOSE SKYTEL CORP IS A LEADING PAGING COMPANY PLANS TO BUILD A TWOWAY MESSAGE SERVICE AFTER THAT AUCTION IS COMPLETE THE AGENCY WILL AUCTION SIX LICENSES IN EACH OF FIVE REGIONAL MARKETS IT THEN WILL WIND UP THE PROCESS WITH AUCTIONS FOR 360 LICENSES IN SMALLER MAJOR TRADING AREAS AND 1968 LICENSES IN BASIC TRADING AREAS 9404210109 940421 TECHNOLOGY LOTUS FIRSTQUARTER PROFIT ROSE 73 STOCK FALLS 12 AS SALES MISS FORECASTS BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL CAMBRIDGE MASS LOTUS DEVELOPMENT CORP AIDED BY SALES OF PROFITABLE COMMUNICATIONS SOFTWARE REPORTED A FIRSTQUARTER EARNINGS SURGE OF 73 BUT INVESTORS BATTERED LOTUS SHARES AS REVENUE GROWTH FAILED TO MEET ANALYSTS' EXPECTATIONS LOTUS PLUNGED 7875 OR 12 TO 5675 IN HEAVY NASDAQ STOCK MARKET TRADING THE DECLINE TOOK LOTUS STOCK BACK TO ITS LEVEL OF EARLY FEBRUARY BEFORE IT STARTED A SPECTACULAR RUN THAT SAW IT HIT A HIGH OF 8650 LAST MONTH LOTUS REPORTED THAT NET INCOME ROSE TO 213 MILLION OR 45 CENTS A SHARE FROM 123 MILLION OR 29 CENTS A SHARE MOST ANALYSTS HAD EXPECTED EARNINGS OF AROUND 42 CENTS A SHARE REVENUE ROSE 9 TO 247 MILLION FROM 227 MILLION LOTUS SAID THAT REVENUE WAS UP 13 AFTER TAKING ACCOUNT OF THE SALE OF ITS ONE SOURCE UNIT WHICH ADDED ABOUT 10 MILLION IN REVENUE IN THE YEARAGO QUARTER BUT DIDN'T CONTRIBUTE ANYTHING THIS YEAR MANY ANALYSTS HAD EXPECTED 12 TO 15 REVENUE GROWTH FROM WHERE WE SIT IT WAS A GOOD SOLID QUARTER SAID EDWIN GILLIS CHIEF FINANCIAL OFFICER WE'RE THE SAME PEOPLE WE WERE WHEN THE STOCK WAS AT 84 HE SAID LOTUS SAID THAT ITS COMMUNICATIONS BUSINESS INCLUDING CCMAIL ITS EMAIL PACKAGE AND NOTES ITS SOFTWARE FOR COMPUTER NETWORKS MORE THAN DOUBLED AND ACCOUNTED FOR ABOUT 70 MILLION OR 29 OF REVENUE IN THE QUARTER COMMUNICATIONS SOFTWARE IS THE HEART OF LOTUS'S STRATEGY FOR FUTURE GROWTH AND NOTES IS MORE PROFITABLE THAN DESKTOP SOFTWARE APPLICATIONS BECAUSE IT DOESN'T HAVE MUCH COMPETITION INVESTORS WHO DUMPED THE STOCK APPARENTLY WERE MORE CONCERNED ABOUT LOTUS'S APPLICATIONS BUSINESS WHICH STILL ACCOUNTS FOR 70 OF SALES TIMOTHY MCCOLLUM AN ANALYST WITH DEAN WITTER SAID THAT THE SLOWDOWN IN APPLICATIONS WAS GREATER THAN EXPECTED HE ADDED I THINK MICROSOFT IS GETTING BUSINESS AWAY FROM LOTUS MICROSOFT CORP UNVEILED SEVERAL NEW SOFTWARE PRODUCTS DURING THE PAST TWO QUARTERS AND MONDAY IT REPORTED EARNINGS ROSE 38 BEFORE A CHARGE AND REVENUE ROSE 30 LOTUS SAID THAT ITS SOFTWARE FOR DOS THE OLDER GENERATION OPERATING SYSTEM FOR PCS FELL TO ABOUT 40 MILLION FROM ABOUT 70 MILLION THE YEAR BEFORE BUT ITS WINDOWS BUSINESS ROSE WITH ITS SMARTSUITE PACKAGE OF APPLICATIONS RISING FOURFOLD MR GILLIS SAID TERRENCE QUINN AN ANALYST WITH FURMAN SELZ WHO REMAINS BULLISH ON LOTUS SAID THE RESULTS WERE CLOSE TO WHAT HE EXPECTED BUT CLEARLY MARKET PSYCHOLOGY HAS SHIFTED PEOPLE ARE LOOKING AT WHAT IS WRONG RATHER THAN WHAT IS RIGHT HE SAID THAT INVESTORS WERE FURTHER DISCOURAGED WHEN LOTUS REPEATED ITS GUIDANCE THAT IT EXPECTS EARNINGS FOR THE YEAR TO BE BETWEEN 2 A SHARE AND 215 A SHARE AND SECOND QUARTER EARNINGS TO BE FROM 42 CENTS TO 50 CENTS A SHARE THE QUARTERLY FIGURE WOULD BE FAR ABOVE LAST YEAR BUT COULD BE DOWN COMPARED WITH THE JUSTCOMPLETED QUARTER MR QUINN SAID THAT LOTUS HAS CONSISTENTLY EXCEEDED ITS GUIDANCE IN RECENT QUARTERS AND SAID HE EXPECTS EARNINGS TO BE ABOUT 54 CENTS FOR THE QUARTER AND 230 FOR THE YEAR 9404210108 940421 ENTERPRISE HEALTHCARE COMPROMISES APPEAL TO SOME SMALL FIRMS CERTAIN TRADE GROUPS WARM TO MITCHELL PROPOSAL BUT OTHERS BALK AT MANDATE BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL SOME SEGMENTS OF THE SMALLBUSINESS COMMUNITY ARE WARMING A BIT TO WASHINGTON'S EFFORTS TO COMPROMISE ON HEALTHCARE OVERHAUL LEADING GROUPS SUCH AS THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS STILL STAUNCHLY OPPOSE A MANDATORY HEALTHCARE SYSTEM BUT OTHER IMPORTANT VOICES ARE RESPONDING MORE FAVORABLY TO COMPROMISE PROPOSALS SUCH AS THOSE OUTLINED BY SENATE MAJORITY LEADER GEORGE MITCHELL D MAINE LAST WEEKEND SEVERAL MONTHS AGO IT SEEMED THAT EVERYBODY HAD DUG IN THEIR HEELS AND OUR FRUSTRATION LEVEL HAD HIT A HIGH SAYS JOHN SATAGAJ PRESIDENT OF THE SMALL BUSINESS LEGISLATIVE COUNCIL A COALITION OF 100 TRADE GROUPS THAT REPRESENT SMALL BUSINESSES NOW WE'RE BEGINNING TO SEE ACTIONS BY SEN MITCHELL AND SOME HOUSE MEMBERS THAT DON'T FULLY ADDRESS WHAT WE'RE WORRIED ABOUT BUT AT LEAST ACKNOWLEDGE OUR CONCERNS MR SATAGAJ SAYS HE FEELS MORE ENCOURAGED NOW THAN A FEW MONTHS AGO ABOUT PROSPECTS FOR REACHING A COMPROMISE ON THE HEALTHCARE ISSUE MR MITCHELL SPELLED OUT SEVERAL WAYS TO CUT THE EXPENSE OF UNIVERSAL HEALTH CARE INCLUDING REQUIRING EMPLOYERS TO PICK UP 50 INSTEAD OF 80 OF A STANDARD BENEFIT PACKAGE'S COST AND TARGETING SUBSIDIES TO LOWWAGE WORKERS INSTEAD OF ENTIRE BUSINESSES HIS PROPOSALS DID LITTLE HOWEVER TO THAW RESISTANCE OF THE 600000MEMBER NFIB THE NATION'S LARGEST SMALLBUSINESS GROUP THE MITCHELL PROPOSAL DOESN'T REPRESENT MUCH MOVEMENT IN THE DEBATE OVER HEALTH CARE SAYS NFIB LOBBYIST MARK ISAKOWITZ HE DESCRIBES THE SENATOR'S IDEAS AS SLIGHT VARIATIONS OF WHAT WE ALREADY FEEL IS BAD POLICY HE NOTES THAT SEVERAL EARLIER CONGRESSIONAL PROPOSALS HAVE GONE FURTHER THAN THIS INCLUDING ONE THAT WOULD EXEMPT COMPANIES WITH FEWER THAN 10 WORKERS A HOUSE EDUCATION AND LABOR COMMITTEE PANEL TODAY BEGINS CONSIDERING A BILL THAT WOULD CAP THE PREMIUM CONTRIBUTION OF VERY SMALL BUSINESSES AT 2 OF PAYROLL INSTEAD OF THE 35 PROPOSED UNDER THE PRESIDENT'S PLAN THE BILL ALSO WOULD LET STATES DECIDE WHETHER MEMBERSHIP IN INSURANCEPURCHASING POOLS SHOULD BE MANDATORY OR OPTIONAL I AM ENCOURAGED BY SOME OF THE COMPROMISES THAT HAVE BEEN PROPOSED SUCH AS VOLUNTARY INSURANCEBUYING POOLS SAYS LAURA HENDERSON PRESIDENT AND CHIEF EXECUTIVE OF PROSPECT ASSOCIATES LTD A HEALTHISSUES CONSULTING COMPANY IN ROCKVILLE MD WASHINGTON POLICY MAKERS ARE FINALLY LISTENING TO THE SMALLBUSINESS COMMUNITY SHE CONTINUES SEN MITCHELL'S PROPOSAL TO REDUCE EMPLOYERS' PROPOSED SHARE OF BASIC HEALTHCARE COSTS HAS BEEN ESPECIALLY WELLRECEIVED BY SOME SMALL BUSINESSES THAT'S A GOOD IDEA IF IT INCREASES WORKERS' CONTRIBUTION MR SATAGAJ SAYS WE HAVE ARGUED THAT UNLESS EVERYONE HAS A SIGNIFICANT STAKE IN THE OUTCOME WE'RE NOT GOING TO GET THE EFFECTIVE COST CONTROLS YOU NEED TO STABILIZE THE MARKET THE ISSUE OF WHETHER A NEW HEALTHCARE SYSTEM SHOULD BE MANDATORY IS STILL SO EXPLOSIVE IT'S ALMOST IMPOSSIBLE TO TALK ABOUT MR SATAGAJ SAYS BUT HE ADDS WE'RE CONVINCED WE CAN FIND A SOLUTION HERE I THINK IT'S NOW POSSIBLE TO BRING EVERYONE TO THE TABLE JOHN GALLES EXECUTIVE VICE PRESIDENT OF 65000MEMBER NATIONAL SMALL BUSINESS UNITED ALSO IS ENCOURAGED BY GESTURES SUCH AS SEN MITCHELL'S THE SENATOR'S IDEAS ARE A STEP CLOSER TO GATHERING SUPPORT OF SMALL BUSINESSES HE SAYS BUT THEY'VE GOT TO GO FURTHER SPECIFICALLY MR GALLES WANTS TO REPLACE LARGE GOVERNMENTORGANIZED INSURANCE PURCHASING POOLS SUGGESTED BY MR CLINTON WITH SMALLER COMMUNITY POOLS ORGANIZED BY AND FOR SMALL BUSINESSES THAT'S TAKING A HUGE STEP FORWARD MR GALLES SAYS HINTING THAT CONGRESSIONAL SUPPORT OF SUCH A PROPOSAL MIGHT EVEN ALTER HIS GROUP'S OPPOSITION TO A MANDATORY SYSTEM WE'D LOOK A WHOLE LOT MORE KINDLY ON RESPONSIBILITY OF THE EMPLOYER IN THE RELATIONSHIP HE SAYS THE NFIB'S MR ISAKOWITZ SAYS THE FEDERATION CONTINUES TO REJECT A MANDATE REQUIRING SMALL BUSINESS TO PROVIDE EMPLOYEE HEALTH CARE INSTEAD FAVORING A SYSTEM BASED ON FREEMARKET PRINCIPLES HE SAYS GOVERNMENT PROMISES TO SUBSIDIZE THE PLAN'S COSTS AND CAP PAYROLL TAXES HAVE DONE LITTLE TO CHANGE THE FEDERATION'S VIEWS LAWMAKERS HAVE MADE SUCH PROMISES BEFORE AND ALWAYS END UP COMING BACK TO THE EMPLOYER COMMUNITY FOR MORE MONEY MR ISAKOWITZ SAYS THEY'RE ASKING US TO RELY ON A GOVERNMENT 4 TRILLION IN DEBT TO COME THROUGH ON SUBSIDIES THAT'S A GAMBLE OUR MEMBERS AREN'T WILLING TO TAKE THE US CHAMBER OF COMMERCE WHOSE MEMBERS ARE MOSTLY SMALL FIRMS ALSO FEELS THERE'S NO ROOM FOR COMPROMISE ON THE IDEA OF A MANDATE SAYS JEFFREY JOSEPH THE ORGANIZATION'S VICE PRESIDENT OF DOMESTIC POLICY SMALL EMPLOYERS DON'T WANT GOVERNMENT TELLING THEM WHAT TO DO SUCH HARDLINE OPPOSITION BY MAJOR SMALLBUSINESS ORGANIZATIONS SUGGESTS THAT A WORKABLE HEALTHCARE COMPROMISE ISN'T AROUND THE CORNER SURVEYS OF BUSINESS OWNERS REPEATEDLY SHOW AN OVERWHELMING HATRED OF GOVERNMENT MANDATES SAYS JEFFREY TRINCA A WASHINGTON LAWYER WHO ADVISES A FORT WORTH TEXAS INSURANCEBUYING COOPERATIVE FOR 20000 TO 25000 SMALL COMPANIES BUT MR TRINCA SAYS HIS DISCUSSIONS WITH SUCH BUSINESS OWNERS USUALLY SWITCHES VERY QUICKLY FROM SKEPTICISM ABOUT GOVERNMENT INTERFERENCE TO THE EXPENSE AND DIFFICULTY OF PROVIDING COVERAGE FOR THEIR EMPLOYEES AND THEMSELVES THUS HE ADDS IF THERE'S A PROPOSAL THAT PROVIDED ACCESS TO COVERAGE AT REASONABLE PRICES I THINK THEY WOULD BE INTERESTED EVEN IF A MANDATE WAS INVOLVED THESE ARE BUSINESS PEOPLE WHO HAVE SEEN THEIR HEALTHCARE COSTS SPIRAL OUT OF CONTROL SCOTT FOOT CARE PRODUCTS IN OMAHA NEB FOR INSTANCE ESTIMATES THAT PRESIDENT CLINTON'S HEALTHCARE REFORMS WOULD SHAVE 6 TO 7 OFF THE SMALL MANUFACTURER'S COSTS OF PROVIDING HEALTH CARE TO ITS NINE EMPLOYEES I'M NOT OPPOSED TO A MANDATE AS LONG AS I HAD SOME ASSURANCE THAT THE CAP THEY PUT ON MY TAXES WOULDN'T MOVE UP ARBITRARILY AND EMPLOYEES SHARED THE RESPONSIBILITY FOR WHAT THE INSURANCE COSTS SAYS GEORGE ABBOTT PRESIDENT OF MANAGEMENT CONSULTING GROUP LTD SCOTT FOOT CARE'S PARENT WHAT HE FEARS HE ADDS IS GETTING LOCKED INTO A MANDATORY SYSTEM WHOSE TAXES RISE LIKE POSTAL RATES 9404210107 940421 MARKETING & MEDIA DALLAS FIRMS AGREE TO BUY RADIO STATIONS FROM AMERICAN MEDIA DALLAS MBD BROADCASTING AND CHANCELLOR COMMUNICATIONS SAID THEY ARE ACQUIRING 11 RADIO STATIONS FROM AMERICAN MEDIA INC FOR 150 MILLION THE TRANSACTION ONE OF THE LARGEST SINCE THE FEDERAL COMMUNICATIONS COMMISSION RELAXED OWNERSHIP RESTRICTIONS OF RADIO STATIONS IS SUBJECT TO FEDERAL APPROVAL MBD AND CHANCELLOR ARE RUN BY STEVEN DINETZ WHO IS PRESIDENT OF BOTH OF THE CLOSELY HELD DALLAS CONCERNS THE INVESTMENT FIRM HICKS MUSE TATE & FURST INC IS THE BIGGEST INVESTOR IN MR DINETZ'S FIRMS AMERICAN MEDIA IS A CLOSELY HELD COMPANY BASED IN SAN FRANCISCO AND LONG ISLAND NY MBD WHICH DOES NOT CURRENTLY OWN ANY RADIO STATIONS IS ACQUIRING WUBEAM/FM AND WYGYFM IN CINCINNATI KTCJAM AND KTCZFM IN MINNEAPOLIS WALKAM/FM IN NASSAU AND SUFFOLK COUNTIES NEW YORK KMENAM AND KGGIFM IN RIVERSIDE/SAN BERNARDINO CALIF AND WOCLFM IN ORLANDO FLA CHANCELLOR WHICH CURRENTLY OWNS KFBKAM AND KGBYFM IN SACRAMENTO CALIF IS ACQUIRING KHYLFM IN THAT MARKET MR DINETZ SAID HE PLANS TO PURSUE ADDITIONAL ACQUISITIONS IN THE SAME MARKETS UP TO FCC OWNERSHIP LIMITS 9404210106 940421 ADOLESCENTS HURT AT WORK TOTAL 64000 STUDY SAYS WASHINGTON MORE THAN 64000 ADOLESCENTS FROM 14 TO 17 YEARS OLD WERE REPORTED INJURED ON THE JOB IN 1992 THE NATIONAL INSTITUTE FOR OCCUPATIONAL SAFETY AND HEALTH REPORTED THE REPORT SAID THE US HAS THE MOST ADOLESCENTS IN THE WORK FORCE ALMOST SIX MILLION OF ALL WESTERN COUNTRIES THE INSTITUTE ALSO REPORTED THAT DURING 198089 670 PEOPLE AGE 16 OR 17 DIED AT WORK MOSTLY FROM ACTIVITY IN VIOLATION OF CHILD LABOR LAWS JULIE TISDALE AN INSTITUTE SPOKESWOMAN SAID MORE RECENT FIGURES ON THE NUMBER OF DEATHS WEREN'T AVAILABLE THE REPORT SAID INJURY FIGURES WERE CONSERVATIVE BECAUSE ONLY ABOUT 36 OF WORKFORCE INJURIES ARE TREATED IN EMERGENCY DEPARTMENTS FROM WHICH THE STATISTICS WERE OBTAINED OTHER CAUSES OF DEATH WERE MACHINERELATED ACCIDENTS ELECTROCUTION HOMICIDE OR FALLS AT A RATE OF 51 DEATHS PER 100000 ADOLESCENT WORKERS ACCORDING TO THE INSTITUTE THE MOST HAZARDOUS JOBS WERE IN THE AGRICULTURE AND CONSTRUCTION INDUSTRIES THE LIKELIHOOD OF ADOLESCENT INJURY WAS MUCH GREATER AT 58 INJURIES PER 100 WORKERS THESE INJURIES CONSISTED MAINLY OF BURNS AND LACERATIONS IN THE RETAIL SERVICE INDUSTRY PARTICULARLY RESTAURANTS THE REPORT ALSO SAID MALES WERE TWICE AS LIKELY TO BE INJURED IN MOST CASES THAN FEMALES 9404210105 940421 YOUR MONEY MATTERS CASH BEAT STOCKS BONDS IN PAST YEAR WARY STRATEGISTS SHIFT INVESTMENT MIX BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL CASH IS TRASH PROCLAIMED A LOT OF BROKERS AND PUNDITS A YEAR AGO THEY CAN BITE THEIR GLIB TONGUES DURING THE PAST 12 MONTHS SAFE SHORTTERM CASH INVESTMENTS SUCH AS MONEYMARKET FUNDS AND BANK CERTIFICATES OF DEPOSIT BEAT OUT BOTH STOCKS AND BONDS WITH A RETURN OF ABOUT 32 THAT'S HARDLY ANYTHING TO WRITE HOME ABOUT OF COURSE BUT FOR THE 12 MONTHS THROUGH MARCH BONDS RETURNED ONLY 3 AND STOCKS JUST 14 ACCORDING TO WILSHIRE ASSOCIATES OF SANTA MONICA CALIF NOW WITH STOCKS AND BONDS CONTINUING TO STRUGGLE AFTER THE FEDERAL RESERVE'S LATEST BOOST IN SHORTTERM INTEREST RATES WALL STREET INVESTMENT STRATEGISTS ARE NO LONGER MAKING FUN OF CASH WHILE THEY STILL EXPECT STOCKS AND BONDS TO OUTPERFORM CASH DURING THE COMING 12 MONTHS THEY SEEM TO BE LOSING CONFIDENCE MOST OF THE 12 STRATEGISTS TRACKED IN A CONTINUING WALL STREET JOURNAL STUDY EXPECT STOCKS AND BONDS TO PROVIDE DECENT INVESTMENT RETURNS FOR THE FULL YEAR 1994 PROBABLY IN THE HIGH SINGLE DIGITS THE AVERAGE STRATEGIST NOW SUGGESTS A BLEND OF ABOUT 58 STOCKS 26 BONDS AND 15 CASH THAT'S A LITTLE HEAVIER THAN USUAL IN STOCKS AND CASH AND LIGHTER IN BONDS BUT SEVEN OF THE 12 BROKERAGEHOUSE STRATEGISTS HAVE LOWERED THEIR RECOMMENDED STOCK ALLOCATIONS SINCE THE FED BEGAN TO RAISE SHORTTERM INTEREST RATES IN EARLY FEBRUARY MANY OF THE STRATEGISTS SAY MORE RATE INCREASES MAY COME THE JOURNAL STUDIES THE PERFORMANCE OF THE BIG BROKERAGE HOUSES' ASSET ALLOCATORS EACH QUARTER WITH AID FROM WILSHIRE ASSOCIATES AND CARPENTER ANALYTICAL SERVICES OF HANOVER NH THE IDEA IS TO SEE HOW INVESTORS WOULD FARE IF THEY FOLLOWED THE ALLOCATION ADVICE GIVEN BY WALL STREET'S GURUS ON AVERAGE THE STUDY SUGGESTS INVESTORS COULD DO ABOUT AS WELL BY SIMPLY STICKING TO A CLASSIC ALLOCATION OF 55 STOCKS 35 BONDS AND 10 CASH BUT SOME STRATEGISTS HAVE DONE BETTER THAN OTHERS FOR THE LATEST 12 MONTHS LEHMAN BROTHERS INC EDGED OUT THE COMPETITION WITH THE BEST ADVICE NOTCHING A 27 GAIN KATHERINE HENSEL TOOK OVER THE STRATEGIST'S POST AT LEHMAN AS 1994 BEGAN AND PROMPTLY TRIMMED THE STOCK ALLOCATION TO 50 IT HAD BEEN 75 UNDER ELAINE GARZARELLI WHO FILLED THE STRATEGISTS' SLOT TEMPORARILY PEOPLE WHO LISTENED TO MS HENSEL AVOIDED SOME OF THE DAMAGE OF THE SPRING STOCK SLIDE MS HENSEL SAYS STOCKS ALREADY NICKED ABOUT 8 SINCE LATE JANUARY COULD FALL ANOTHER 5 TO 10 SHE'S WATCHING FOR SOME SORT OF CRISIS PERHAPS WHITEWATER NORTH KOREA RUSSIA OR FINANCIAL ACCIDENTS IN DERIVATIVE SECURITIES TO CRYSTALLIZE INVESTORS' FEARS AND PRODUCE A SELLING CLIMAX AFTER THAT SHE SAYS STOCKS COULD RISE AGAIN AS FOR BONDS SHE THINKS MOST OF THE DAMAGE ALREADY HAS BEEN DONE FOR THE FIRST QUARTER DAVID SHULMAN CHIEF STRATEGIST AT SALOMON BROTHERS INC GAVE THE BEST ADVICE URGING PEOPLE TO PUT ONLY 45 OF THEIR MONEY IN STOCKS HIS FOLLOWERS LOST ABOUT 24 FOR THE QUARTER A SHADE BETTER THAN COMPETITORS' RESULTS MR SHULMAN HAS SINCE UPPED HIS STOCK ANTE TO 50 BUT HE BELIEVES STOCK PRICES WILL END THIS YEAR ABOUT WHERE THEY BEGAN WITH THE FED TRYING TO SLOW THE ECONOMY HE SAYS CORPORATE PROFITS IN 1995 MAY NOT BE AS ROBUST AS BULLS ARE COUNTING ON THE UPSIDE I THINK IS LIMITED MR SHULMAN SAYS I DON'T THINK WE'RE GOING TO GO A LOT LOWER EITHER FOR THE FIVE YEARS THROUGH MARCH GREG SMITH OF PRUDENTIAL SECURITIES INC HAS THE BEST TRACK RECORD WITH AN ESTIMATED 74 GAIN BREATHING DOWN HIS NECK ARE LEHMAN BROTHERS 733 AND KIDDER PEABODY & CO 73 MR SMITH WHO OFTEN CARRIES THE BIGGEST STOCK POSITION AMONG THE STRATEGISTS LOWERED HIS STOCK ALLOCATION A WEEK AGO TO 65 FROM 80 THIS IS NO TIME TO BE A HERO HE SAYS HISTORY ARGUES AGAINST A VERY SHORT RATERAISING PROCESS BY THE FED HE ALSO WORRIES ABOUT POSSIBLE INCREASES IN OIL PRICES AND ABOUT TINKERING WITH THE NATION'S HEALTHCARE SYSTEM THAT MIGHT REIGNITE HEALTHCOST INFLATION THE MOST BULLISH OF THE 12 FIRMS IS GOLDMAN SACHS & CO WHERE STEVEN EINHORN AND ABBY COHEN RECOMMEND INVESTORS PUT 80 OF THEIR MONEY IN STOCKS IT WOULD BE ODD FOR THE BULL TO BE OVER MR EINHORN SAYS TYPICALLY BULL MARKETS END SIX TO NINE MONTHS PRIOR TO A PEAK IN BUSINESS ACTIVITY GOLDMAN FIGURES THE CURRENT ECONOMIC EXPANSION WILL ROLL ON AT LEAST THROUGH THE END OF 1995 MR EINHORN ALSO CITES SEVERAL OTHER REASONS INCLUDING CONTAINED INFLATION AND RISING CORPORATE DIVIDENDS AS CAUSE FOR OPTIMISM ALSO RELATIVELY BULLISH IS RAYMOND WORSECK OF AG EDWARDS & SONS INC ST LOUIS THE RECENT SMASH IN THE BOND MARKET IS THE TYPE OF THING THAT USED TO BE CALLED A PANIC HE SAYS AS THE BOND MARKET CALMS DOWN HE LOOKS FOR STOCKS TO REVISIT THEIR JANUARY HIGHS MR WORSECK AND EDWARD KERSCHNER OF PAINEWEBBER INC HAVE THE BIGGEST BOND ALLOCATIONS EACH AT 40 WITH 30YEAR GOVERNMENT BONDS YIELDING ABOUT 74 MR KERSCHNER SAYS BONDS ARE PRETTY ATTRACTIVE IN THEIR OWN RIGHT RELATIVE TO STOCKS AND CASH HE SAYS BONDS ARE AT THEIR MOST ATTRACTIVE LEVEL IN SIX YEARS THE BIGGEST CASH POSITIONS 25 ARE RECOMMENDED BY DEAN WITTER REYNOLDS INC AND SMITH BARNEY SHEARSON INC FOR WILLIAM DODGE OF DEAN WITTER TO SIT AROUND AND DEBATE THE VALIDITY OF THE FED'S CONCERNS IS BESIDE THE POINT INFLATION FEARS MAY OR MAY NOT BE JUSTIFIED THE ECONOMY MAY OR MAY NOT BE TOO STRONG THE POINT MR DODGE SAYS IS THAT THE FED THINKS THESE THINGS AND IT WILL KEEP RAISING SHORTTERM INTEREST RATES UNTIL THE ECONOMY SLOWS DOWN I THINK WE'RE GOING TO HAVE A FRUSTRATING AND PROBABLY ERODING MARKET SITUATION FOR SEVERAL MONTHS SAYS WILLIAM HELMAN OF SMITH BARNEY THE FEDERAL RESERVE WILL BE REDUCING THE MONETARY EASE THAT WE'VE HAD AND POSSIBLY MOVING TO SOME DEGREE OF TIGHTNESS THAT'S THE KEY THAT'S WHAT MAKES THE MARKET MOVE AT KEMPER SECURITIES GROUP INC IN CHICAGO STRATEGIST RAO CHALASANI WHO WAS BEARISH BEFORE THE SPRING CORRECTION HAS MOVED TO A FAIRLY MIDDLEOFTHEROAD BLEND OF 55 STOCKS 30 BONDS AND 15 CASH THE TOTAL RETURN FROM STOCKS IS NOT EXPECTED TO BE ANYTHING SPECTACULAR PERHAPS 8 A YEAR THE NEXT COUPLE OF YEARS HE SAYS AMONG THE STOCKS HE LIKES THEREFORE ARE HIGHDIVIDEND STOCKS SUCH AS UTILITIES REALESTATE INVESTMENT TRUSTS AND DRUG COMPANIES AT KIDDER PEABODY & CO STRATEGIST WILLIAM NEWMAN SAYS A FURTHER DIP IN STOCKS IS FAIRLY LIKELY IN THE NEXT COUPLE OF MONTHS BUT SAYS THINGS SHOULD LOOK BETTER BY FALL INFLATION WILL NOT BE THERE HE SAYS THE ECONOMY WILL BE GROWING AT A GOOD PACE AND CORPORATE PROFITS WILL BE STRONG HE SUGGESTS HOARDING 20 CASH TO BE USED TO BUY STOCKS AT LOWER PRICES RAYMOND JAMES FINANCIAL INC WHICH HAS DONE WELL IN THIS NEWSPAPER'S STUDY OF STOCKPICKING PROWESS HAS BROUGHT UP THE REAR IN ASSETALLOCATION IN RECENT YEARS THE FIRM DOES ITS ASSETALLOCATION WORK BY COMMITTEE RECENTLY THE COMMITTEE CUT STOCKS BACK TO 60 FROM 70 EARLIER THIS YEAR AND RECOMMENDED A 5 POSITION IN REAL ESTATE 9404210104 940421 BENTSEN CREATES TASK FORCE IN BID TO FIGHT TAX FRAUD WASHINGTON TREASURY SECRETARY LLOYD BENTSEN SAID HE IS CREATING A SPECIAL TASK FORCE TO FIGHT TAX FRAUD INCLUDING ELECTRONIC FRAUD MR BENTSEN TOLD THE HOUSE WAYS AND MEANS COMMITTEE THAT THE TREASURY IS PLANNING TO SPEND 311 MILLION IN THE FISCAL YEAR ENDING SEPT 30 1995 TO MODERNIZE THE INTERNAL REVENUE SERVICE AND THAT 72 MILLION OF THE TOTAL WOULD BE TARGETED FOR THE NEW TAXFRAUD EFFORT PRESIDENT CLINTON'S FISCAL 1995 BUDGET HAS ALREADY REQUESTED AN ADDITIONAL 5000 FULLTIME EMPLOYEES FOR MORE EXAMINATIONS AND AUDITS THE TREASURY CONTENDS THAT SUCH ADDITIONAL SPENDING IS A NET DEFICIT SLASHER BECAUSE IT INCREASES TAX COMPLIANCE A TREASURY OFFICIAL SAID THAT THE TASK FORCE WAS PROMPTED IN PART BY A FEBRUARY CONGRESSIONAL HEARING IN WHICH TWO CONVICTED TAX FELONS TESTIFIED ABOUT HOW EASILY THEY DEFRAUDED THE IRS PARTICULARLY THROUGH ELECTRONIC FILING SCHEMES THE IRS IS ALLOWING A GROWING NUMBER OF TAX RETURNS TO BE FILED ELECTRONICALLY OFFICIALS FROM THE TREASURY WILL WORK WITH THE IRS THE OFFICE OF MANAGEMENT AND BUDGET AND THE JUSTICE DEPARTMENT IN LAUNCHING A SIXMONTH STUDY OF TAX FRAUD BEFORE DETERMINING HOW AND WHERE TO BEST TARGET THE ANTIFRAUD FUNDS THE TREASURY SAID 9404210103 940421 MUTUAL FUNDS EMERGINGMARKETS FUNDS LOOK TEMPTING TO SOME AFTER DECLINE BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AFTER THE DIVE BY EMERGINGMARKETS FUNDS SOME THINK IT'S TIME FOR INVESTORS TO TAKE THE PLUNGE I THINK THE EMERGING MARKETS ARE ATTRACTIVE LONG TERM AND IT'S AT TIMES LIKE THESE THAT YOU HAVE TO STEP UP TO THE PLATE SAYS DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER YOU'VE GOT TO BE WILLING TO BUY WHEN SOME OF THE FROTH HAS BEEN TAKEN OUT OF THE MARKET AND THERE'S A LOT OF UNCERTAINTY HE SAYS MR PHILLIPS FAVORS STOCK FUNDS SUCH AS NEWPORT TIGER FUND AND TEMPLETON DEVELOPING MARKETS TRUST BOTH CHARGE A SALES COMMISSION OR LOAD EMERGINGMARKET STOCK AND BOND FUNDS ARE CONSIDERED TO BE AMONG THE RISKIEST BUT POTENTIALLY MOST REWARDING FUND INVESTMENTS THE STOCK FUNDS AIM TO BENEFIT FROM THE EXPLOSIVE GROWTH IN DEVELOPING COUNTRIES THE BOND FUNDS LOOK TO EARN THE HUGE YIELDS AND POTENTIAL CAPITAL APPRECIATION THAT COME FROM INVESTING IN EMERGINGMARKET DEBT LAST YEAR THE FUNDS DELIVERED ON THEIR PROMISED REWARDS WITH SOME POSTING RETURNS OF 50 AND MORE THIS YEAR THE REWARDS HAVE EVAPORATED AND THE RISKS HAVE BECOME CLEAR SOME FUNDS HAVE PLUNGED MORE THAN 20 SO FAR THIS YEAR AT THIS POINT I WOULD RECOMMEND SOME JUDICIOUS DOLLARCOST AVERAGING SAYS SHELDON JACOBS EDITOR OF THE NOLOAD FUND INVESTOR AN IRVINGTON NY NEWSLETTER DOLLARCOST AVERAGING INVOLVES GRADUALLY MOVING MONEY INTO THE MARKET USUALLY IN MONTHLY INSTALLMENTS MONTHLY INVESTMENTS BUY MORE MUTUALFUND SHARES WHEN PRICES ARE DOWN AND FEWER WHEN PRICES ARE UP BECAUSE MOST FUNDS MAKE MONEY OVER TIME YOU SHOULD END UP WITH MUTUALFUND SHARES THAT ARE WORTH A LOT MORE THAN THE PRICE YOU PAID MR JACOBS IS RECOMMENDING NOLOAD FUNDS SUCH AS FIDELITY EMERGING MARKETS FUND FIDELITY NEW MARKETS INCOME FUND MONTGOMERY EMERGING MARKETS FUND AND T ROWE PRICE NEW ASIA FUND ALL FOUR HAVE POSTED DOUBLEDIGIT LOSSES IN 1994 THROUGH LAST THURSDAY ACCORDING TO FUND RESEARCHER LIPPER ANALYTICAL SERVICES EMERGINGMARKET STOCK AND BOND FUNDS AREN'T THE ONLY FUNDS TO HAVE BEEN HIT HARD IN RECENT MONTHS RISING INTEREST RATES HAVE BEEN PARTICULARLY DAMAGING TO UTILITY FUNDS AND MOST BOND FUNDS ESPECIALLY THOSE THAT FAVOR MUNICIPAL BONDS AND LONGTERM GOVERNMENT BONDS BUT GIVEN THE POSSIBILITY THAT THE FEDERAL RESERVE MAY BOOST SHORTTERM INTEREST RATES FURTHER ANALYSTS ARE ADVISING INVESTORS TO STEER CLEAR OF THESE FUNDS I'D STAY ON THE SIDELINES ON INTERESTRATE SENSITIVE FUNDS MR JACOBS SAYS AMONG EMERGINGMARKETS FUNDS ANALYSTS ARE ESPECIALLY KEEN ON THOSE THAT INVEST IN EMERGINGMARKET BONDS AND IN SMALLER ASIAN STOCK MARKETS THE ONLY AREA WHERE WE HAVE STARTED BUYING A LITTLE BIT IS EMERGINGMARKET DEBT SAYS KENNETH GREGORY A SAN FRANCISCO INVESTMENT ADVISER AND EDITOR OF THE NOLOAD FUND ANALYST A MONTHLY NEWSLETTER WE'RE ALWAYS LOOKING AT RELATIVE VALUATIONS BETWEEN DIFFERENT TYPES OF FUNDS THE DISCREPANCY IN DECLINES ACROSS ASSET CLASSES HASN'T BEEN THAT GREAT EMERGINGMARKET DEBT IS ONE OF THE EXCEPTIONS MR GREGORY HAS BEEN BUYING FIDELITY NEW MARKET INCOME FOR HIS CLIENTS WE JUST PUT OUR TOE IN HE SAYS BUT WE MAY TAKE THAT HIGHER WE THINK THERE'S REALLY GOOD VALUE THERE RIGHT NOW ROBERT BINGHAM AN INVESTMENT ADVISER WITH SAN FRANCISCO'S BINGHAM OSBORN & SCARBOROUGH HAS RECENTLY PUT SOME CLIENTS INTO T ROWE PRICE NEW ASIA A STOCK FUND THAT AVOIDS JAPAN AND INSTEAD FOCUSES ON SMALLER ASIAN MARKETS IF YOU LOOK AT THE EMERGING STOCK MARKETS THERE ARE TWO KEY AREAS THAT ARE GETTING A LOT OF ATTENTION MR BINGHAM SAYS THEY'RE THE PACIFIC BASIN AND LATIN AMERICA THE PACIFIC BASIN IS CERTAINLY MORE MATURE THAN LATIN AMERICA ECONOMICALLY AND LESS OF A SPECULATIVE PLAY T ROWE PRICE NEW ASIA IS ALSO A FAVORITE OF CHIP NORTON MANAGING EDITOR OF DONOGHUE'S MONEYLETTER A NEWSLETTER BASED IN ASHLAND MASS THE NEWSLETTER HAS CONTINUED TO RECOMMEND THE FUND DESPITE ITS RECENT POOR PERFORMANCE WE'VE TAKEN OUR LUMPS OVER THE LAST FEW MONTHS BUT WE THINK THE FUND WILL WORK OUT WELL FOR US MR NORTON SAYS WE THINK THERE'S GOOD GROWTH POTENTIAL THERE NOT EVERYBODY IS IN A MOOD TO BUY AT THE START OF THE YEAR NEW YORK'S CAIN ASSET MANAGEMENT HAD ITS CLIENTS HEAVILY INVESTED IN EMERGINGMARKETS FUNDS INCLUDING FIDELITY LATIN AMERICA FUND FIDELITY SOUTHEAST ASIA FUND AND LEXINGTON WORLDWIDE EMERGING MARKETS FUND BUT BEFORE JANUARY WAS OVER THE FIRM HAD BAILED OUT OF ALL THREE FUNDS CONCEPTUALLY WE BELIEVE THAT THE REAL GROWTH OF THE WORLD WILL BE IN PLACES LIKE LATIN AMERICA AND CHINA SAYS CHARLES CAIN CAIN ASSET MANAGEMENT'S PRESIDENT BUT IF AMERICA GOES DOWN FOR AN EXTENDED PERIOD OF TIME WE DON'T BELIEVE THAT THESE MARKETS WILL ESCAPE THE BACKWASH WHEN THE US MARKET CRASHES THESE MARKETS CRASH OUR VIEW IS THAT THIS IS A GOODOLDFASHIONED BEAR MARKET BELOW ARE EMERGINGMARKET STOCK AND BOND FUNDS RECOMMENDED BY ANALYSTS ALL HAVE INVESTMENT MINIMUMS OF 2500 OR LESS 9404210102 940421 NASD IS ANTICIPATING A TOTAL MARKET DROP OF 10 FOR THIS YEAR A WALL STREET JOURNAL NEWS ROUNDUP EVEN THE NASD ISN'T BULLISH ON THE STOCK MARKET FOR 1994 THE NATIONAL ASSOCIATION OF SECURITIES DEALERS WHICH RUNS THE NASDAQ STOCK MARKET THIS MONTH DISCLOSED IN A LETTER TO BROKERAGE FIRMS THAT ITS 1994 BUDGET ANTICIPATES A 10 NASDAQMARKET DECLINE FOR ALL OF 1994 THROUGH YESTERDAY THE NASDAQ COMPOSITE WAS ALREADY DOWN ABOUT 9 WHILE THE DOW JONES INDUSTRIAL AVERAGE WAS OFF 4 SO IF THE NASD IS RIGHT THE NASDAQ MARKET COULD BE ABOUT FLAT FROM HERE THROUGH YEAR END THE LUKEWARM MARKET PREDICTION IS CONTAINED IN A SOCALLED PRESIDENT'S REPORT FROM JOSEPH HARDIMAN NASD PRESIDENT DESPITE WHAT HE CALLS THE ROBUST PERFORMANCE OF THE NASDAQ MARKET THROUGH MOST OF THE FIRST QUARTER OUR PLANNING AND THE RESULTING BUDGET FOR 1994 ANTICIPATE A 10 DROP FOR STOCKS MR HARDIMAN WRITES HE CONTINUES CONCERN OVER RISING INTEREST RATES THAT COULD DAMP TRADING ACTIVITY AND REDUCE PRICES OF EQUITIES IS EVER PRESENT IN ADDITION TENSIONS BETWEEN THE US AND JAPAN AND CHINA COULD ADVERSELY AFFECT OUR INTERNATIONAL TRADE WITH THESE NATIONS UNREST CONTINUES TO PREVAIL IN SOUTH AFRICA SOUTH AND NORTH KOREA BOSNIA AND THE MIDDLE EAST IN AN INTERVIEW YESTERDAY MR HARDIMAN DESCRIBED THE 10 PREDICTION AS A PESSIMISTIC OUTLOOK FOR BUDGET REASONS BUT HE SAID THAT AT THIS POINT HE FIGURES THE MARKETS HAVE SEEN THE DECLINE THEY'RE GOING TO EXPERIENCE FOR THE YEAR MR HARDIMAN CAUTIONS HOWEVER THAT HE DOESN'T MAKE A HABIT OF MARKET FORECASTING WE DON'T KNOW ANYTHING MORE THAN THE REST OF THE PUBLIC KNOWS HE SAYS 9404210101 940421 COMMODITIES OIL FUTURES PRICES RALLY IN ACTIVE TRADING MAY CRUDE CONTRACT SETTLES AT 1682 A BARREL BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL A LATE SURGE IN BUYING PROPELLED OIL PRICES SHARPLY HIGHER IN US FUTURES TRADING AND TRIGGERED A RALLY IN WORLD OIL MARKETS ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FOR MAY DELIVERY ROSE TO 1691 A BARREL IN HEAVY TRADING BEFORE FALLING BACK SLIGHTLY IT SETTLED AT 1682 A BARREL UP 33 CENTS FOR THE DAY AND THE HIGHEST FOR A NEARMONTH CRUDE SETTLEMENT PRICE SINCE NOVEMBER TRADERS SAID YESTERDAY'S EXPIRATION OF THE MAY CRUDE CONTRACT CONTRIBUTED TO ITS VOLATILITY AND HIGHER PRICE BUT JUNE CRUDE ALSO INCREASED BY 20 CENTS TO SETTLE AT 1632 A BARREL THE BUYING SURGE ON THE NEW YORK MERC ALSO HELPED TO PUSH PRICES HIGHER ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE WHERE BRENT CRUDE FUTURES PRICES BRIEFLY BROKE THROUGH THE PSYCHOLOGICALLY IMPORTANT LEVEL OF 15 A BARREL THE BRENT JUNE CONTRACT FELL BACK HOWEVER TO SETTLE AT 1494 A BARREL UP 12 CENTS FOR THE DAY IN EARLY TRADING BEFORE THE RALLY BEGAN OIL PRICES GENERALLY WERE FALLING REPORTS THAT THE UNITED NATIONS WEAPONS ENVOY WOULD LEAVE TODAY FOR ANOTHER MEETING IN BAGHDAD WITH IRAQ'S GOVERNMENT OFFICIALS ADDED TO THE OIL MARKET'S WEAKNESS IRAQ HAS BEEN CALLING FOR A WEAPONSMONITORING TIMETABLE IN HOPES IT WILL LEAD TO A LIFTING OF THE UN BAN AGAINST IRAQI OIL EXPORTS BUT THEN THE HEAVY BUYING BEGAN ON THE NEW YORK MERC ALTHOUGH ANALYSTS DIFFERED ON THE REASONS BEHIND IT THE MARKET IS MOVING UNDER ITS OWN STEAM SAID PETER BEUTEL WHO HEADS THE OIL RESEARCH AND BROKERAGE FIRM OF CAMERON HANOVER INC STILL THERE WAS SOME FURTHER EVIDENCE OF CHANGES IN OIL SUPPLYDEMAND FUNDAMENTALS ROBERT BOSLEGO A BURLINGTON MASS OIL MARKET ANALYST CITED RECENT DECLINES IN US CRUDE OIL AND GASOLINE INVENTORIES TO THE LOWEST LEVELS FOR THIS TIME OF THE YEAR SINCE 1991 THE LOWER INVENTORIES AND HIGHER DEMAND ARE VERY SUPPORTIVE FOR THE OIL MARKET HE SAID THE CENTRE FOR GLOBAL ENERGY STUDIES ALSO FORESEES A MORE OPTIMISTIC ASSESSMENT OF PRICE PROSPECTS AS THE OIL MARKET REALIZES FUNDAMENTAL FACTORS MAY BE STRONGER THAN EXPECTED IN ITS MONTHLY OIL REPORT RELEASED YESTERDAY THE CENTRE SAID THE OUTLOOK FOR 1994 OIL PRICES HAS BEEN TRANSFORMED BY A COMBINATION OF RECENT COLD WINTER WEATHER AND A STRONGER US ECONOMY THE CENTRE A LONDONBASED ENERGY THINK TANK FOUNDED BY AHMED ZAKI YAMANI THE FORMER OIL MINISTER OF SAUDI ARABIA PREDICTED THAT OIL PRICES SHOULD IMPROVE SHARPLY BY THIS YEAR'S FOURTH QUARTER BUT ONLY IF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES CAN MAINTAIN OUTPUT DISCIPLINE AS LONG AS OUTPUT QUOTA VIOLATIONS REMAIN SMALL THE PROSPECTS FOR RISING OIL PRICES DURING THE REMAINDER OF 1994 LOOK GOOD BUT THEY COULD BE UNDERMINED BY EXCESSIVE OVERPRODUCTION THE CENTRE'S REPORT SAID NOT EVERYONE AGREES THAT STRONGER OIL PRICES MAY BE DUE MOODY'S INVESTORS SERVICE YESTERDAY WARNED THAT THE CREDIT QUALITY OF ENERGY COMPANIES WILL CONTINUE TO DETERIORATE IF AS IT EXPECTS OIL PRICES REMAIN LOW DESPITE A GROWING RECOVERY IN THE US THE EXPECTATION THAT EUROPE'S ECONOMY WILL IMPROVE AND THE OPINION OF MANY ANALYSTS THAT OIL PRICES WILL SEE STRONG GROWTH MOODY'S SAID IT BELIEVES PRICES WILL REMAIN NEAR THE LOWER END OF ITS FORECASTING RANGE OF 13 TO 18 A BARREL FOR BRENT CRUDE IN OTHER COMMODITY MARKETS GRAIN WORRIES ABOUT WETTER WEATHER AS THE PLANTING SEASON FOR CORN AND SOYBEANS APPROACHES SENT FUTURES PRICES OF BOTH COMMODITIES HIGHER ON THE CHICAGO BOARD OF TRADE CORN FOR JULY DELIVERY ENDED AT 2645 A BUSHEL UP 125 CENTS AND OTHER CORN FUTURES CONTRACTS ROSE AS MUCH AS THREE CENTS ON THE DAY THE JULY SOYBEAN CONTRACT FINISHED UP SIX CENTS AT 6645 A BUSHEL WHILE PRICES OF FUTURES CONTRACTS ON THE SOCALLED NEW CROP SOYBEANS NOW BEING PLANTED FOR HARVEST THIS FALL ROSE ABOUT EIGHT CENTS ANNE FRICK AN ANALYST WITH PRUDENTIAL SECURITIES IN NEW YORK SAID PRIVATE WEATHER FORECASTERS CALLING FOR MORE RAIN IN THE US MIDWEST WHICH WOULD RESULT IN DETERIORATING PLANTING CONDITIONS APPEAR TO HAVE TRIGGERED PART OF THE RALLY SOYBEAN AND CORN PRICES HAVE BEEN IN QUITE A SLUMP SINCE JANUARY AND PEOPLE NOW ARE TALKING ABOUT BUILDING IN A WEATHER PREMIUM INTO THE PRICE IN CASE THE YIELD ISN'T UP TO EXPECTATIONS MS FRICK SAID BUT IT'S A BIT EARLY YET IN THE PLANTING SEASON FOR THIS KIND OF RUNUP THE SOYBEAN MARKET CONTINUES TO BE SUPPORTED BY CONTINUED SHIPMENT PROBLEMS IN BRAZIL WHERE SEVERAL WEEKS' WORTH OF SOYMEAL AND SOYBEAN EXPORTS REMAIN BACKED UP COFFEE COFFEE PRICES ROSE SHARPLY AMID THE SPECTER OF TIGHTENING SUPPLIES ON NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE COFFEE FOR MAY DELIVERY MOVED UP 17 CENTS TO 8255 CENTS A POUND IN THE WAKE OF A RALLY IN COFFEE FUTURES IN LONDON CONSUMER INVENTORIES ARE CONTINUING TO FALL SAID SANDRA KAUL SENIOR ANALYST WITH SMITH BARNEY SHEARSON INC IN NEW YORK WE'RE ENTERING THE SEASON WHEN THERE'S THE CHANCE OF A FROST IN BRAZIL AT A TIME WHEN WE'RE ALREADY LOOKING AT THE SMALLEST CROPS WORLDWIDE THAT WE'VE SEEN FOR SEVERAL YEARS THAT SUPPLY ANXIETY IS FINALLY MAKING INVESTORS REALIZE THAT DELIVERIES ON THE MAY CONTRACT ARE LIKELY TO BE SMALLER THAN EXPECTED SAID JUDITH GANES SENIOR ANALYST AT MERRILL LYNCH & CO SENDING SHORTSELLERS SCRAMBLING TO COVER THEIR POSITIONS SHORTSELLERS ARE INVESTORS WHO SELL BORROWED COMMODITY CONTRACTS BETTING THAT THE PRICE WILL FALL BY THE TIME THEY PURCHASE ONES TO REPLACE THEM 9404210100 940421 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ANDEAN FUND AN INITIAL OFFERING FOR UP TO 383334 COMMON SHARES AT AN EXPECTED 15 A SHARE VIA MERRILL LYNCH & CO COLLINS & AIKMAN HOLDINGS CORP AN OFFERING OF 20 MILLION COMMON SHARES PUBLIC SERVICE CO AN OFFERING OF 1725000 COMMON SHARES PEDIATRIC SERVICES OF AMERICA INC AN INITIAL OFFERING OF 17 MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 225000 ADDITIONAL SHARES VIA FURMAN SELZ INC AND NEEDHAM & CO SHOLODGE INC AN OFFERING OF 50 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES WITH AN OVERALLOTMENT OPTION FOR 75 MILLION OF ADDITIONAL DEBENTURES VIA JC BRADFORD & CO AND MONTGOMERY SECURITIES 9404210099 940421 BUSINESS BRIEFS FEDERAL PAPER BOARD CO COMPLETED ITS REINCORPORATION IN NORTH CAROLINA FROM NEW YORK STATE THE PERIOD UNDER WHICH COLUMBIA GAS SYSTEM INC HAS THE EXCLUSIVE RIGHT TO FILE A CHAPTER 11 REORGANIZATION PLAN HAS BEEN EXTENDED UNTIL OCT 20 RATHER THAN THE REQUESTED JULY 20 DATE NUI CORP A NATURAL GAS UTILITY COMPLETED ITS ACQUISITION OF PENNSYLVANIA & SOUTHERN GAS CO BASED IN SAYRE PA IN A STOCK TRANSACTION VALUED AT ABOUT 17 MILLION FOURTH FINANCIAL CORP AGREED IN PRINCIPLE TO ACQUIRE STILLWATER FEDERAL SAVINGS BANK IN STILLWATER OKLA FROM OKLAHOMA SAVINGS INC FOR ABOUT 10 MILLION IN FOURTH FINANCIAL COMMON STOCK BANK OF BOSTON CORP AGREED TO PURCHASE A 25 BILLION MORTGAGE SERVICING PORTFOLIO FROM MERIDIAN MORTGAGE CORP A UNIT OF MERIDIAN BANCORP INC FOR ABOUT 29 MILLION 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 9404210098 940421 ABREAST OF THE MARKET STOCKS LOSE 2111 POINTS TO CLOSE BELOW 3600 DESPITE BOND GAINS BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK INVESTORS CONTINUED TO BAIL OUT OF ECONOMICALLY SENSITIVE STOCKS LEAVING THE DOW JONES INDUSTRIAL AVERAGE UNDER 3600 FOR THE FIRST TIME SINCE APRIL 4 DESPITE A SECOND STRAIGHT DAY OF SOLID BONDMARKET GAINS STOCK INVESTORS REMAINED WORRIED THAT INTEREST RATES ALREADY HAVE CLIMBED ENOUGH TO DAMP THE ECONOMY AND CORPORATE PROFITS LATER THIS YEAR CYCLICAL ISSUES INCLUDING THOSE OF CAR HEAVY MACHINERY AND STEEL COMPANIES HAD RALLIED SHARPLY FOR MONTHS IN ANTICIPATION OF STRONG ECONOMIC GROWTH WITH THE NEW ECONOMIC DOUBTS THEY HAVE TUMBLED OVER RECENT DAYS FOR A SECOND DAY POSITIVE NEWS ON FIRSTQUARTER PROFITS WAS OVERLOOKED TUESDAY CHRYSLER SLUMPED DESPITE A RECORDSETTING EARNINGS REPORT YESTERDAY CATERPILLAR WAS DOWN 4 7/8 TO 103 1/2 DESPITE A SOLID INCOME READING CATERPILLAR'S LOSS ACCOUNTED FOR NEARLY 11 POINTS OF THE DOW'S DROP MANY BROADBASED INDEXES WERE MORE BUOYANT THAN THE DOW JONES INDUSTRIAL AVERAGE THE STANDARD & POOR'S 500 STOCK INDEX DROPPED 058 OR 013 TO 44196 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 071 OR 029 TO 24466 THE NASDAQ STOCK MARKET WAS CLOBBERED AGAIN BY SELLING IN SOME TECHNOLOGY AND HEALTHCARE SECTORS THE NASDAQ COMPOSITE INDEX FELL 733 OR 103 TO 70552ITS LOWEST LEVEL SINCE JULY 30 1993 THE INDEX HAS LOST MORE THAN SEVEN POINTS EVERY DAY THIS WEEK THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX FELL 350 OR 081 TO 42760 AND THE DOW JONES UTILITIES AVERAGE SURGED 408 OR 209 TO 19964 ON THE BIG BOARD DECLINERS LED ADVANCERS 1417 TO 835 WHERE VOLUME WAS 362300000 SHARES COMPARED WITH 323260000 SHARES TUESDAY LONGTERM TREASURY BONDS ROSE MORE THAN 1/2 POINT TO YIELD 731 CATERPILLAR TUMBLED EVEN THOUGH THE PEORIA ILL HEAVYEQUIPMENT MAKER'S EARNINGS LEAPT TO 189 A SHARE IN THE FIRST QUARTER FROM JUST 34 CENTS A YEAR AGO ANALYSTS HAD PREDICTED A RISE TO AROUND 126 ACCORDING TO INSTITUTIONAL BROKERS ESTIMATE SYSTEM ELSEWHERE FORD MOTOR SHED 2 TO 54 3/8 CHRYSLER LOST 2 1/2 TO 46 DEERE DROPPED 4 7/8 TO 75 5/8 AND USXUS STEEL SLUMPED 1 1/8 TO 33 1/8 LOTUS DEVELOPMENT SKIDDED 7 7/8 TO 56 3/4 ON NASDAQ THE CAMBRIDGE MASS SOFTWARE DEVELOPER SAID ITS FIRSTQUARTER EARNINGS JUMPED TO 45 CENTS A SHARE UP FROM 29 CENTS A YEAR AGO AND ABOVE THE 43CENT MEAN ESTIMATE REPORTED BY IBES BUT ANALYSTS WERE SAID TO BE DISAPPOINTED THAT THE COMPANY'S 9 REVENUE GROWTH WASN'T STRONGER AMONG OTHER TECHNOLOGY STOCKS ORACLE FELL 1 TO 26 7/8 APPLE COMPUTER LOST 3/4 TO 28 1/4 AND SEAGATE TECHNOLOGY DROPPED 7/8 TO 22 5/8 ALL ON NASDAQ CONNER PERIPHERALS SLIPPED 1/2 TO 13 7/8 DIGITAL EQUIPMENT LOST 1 1/2 TO 19 3/4 AND TEXAS INSTRUMENTS FELL 1 7/8 TO 64 3/4 COMPAQ COMPUTER HOWEVER JUMPED 3 1/8 TO 101 7/8 AFTER IT REPORTED A FIRSTQUARTER PROFIT OF 240 A SHARE UP FROM 123 LAST YEAR PRUDENTIAL SECURITIES RAISED ITS INVESTMENT RATING ON THE HOUSTON PERSONALCOMPUTER MAKER'S STOCK TO BUY FROM HOLD IT TRADED AS HIGH AS 104 1/2 EARLY IN THE DAY MORTON INTERNATIONAL LOST 10 1/8 TO 82 3/4 EVEN THOUGH ITS THIRDQUARTER EARNINGS TOPPED THE CONSENSUS ESTIMATE THE CHICAGO CHEMICAL INDUSTRIAL COATINGS AND SALT MANUFACTURER EARNED 142 A SHARE IN THE LATEST PERIOD UP FROM 97 CENTS LAST YEAR SOME INVESTORS HAD EXPECTED EVEN BETTER RESULTS THOUGH SHARES OF HEALTHMAINTENANCE ORGANIZATIONS PLUNGED FOR A SECOND STRAIGHT SESSION US HEALTHCARE FELL 2 TO 41 1/4 OXFORD HEALTH PLANS DROPPED 3 1/2 TO 50 1/2 FHP INTERNATIONAL DECLINED 1 7/8 TO 20 7/8 AND TAKECARE SHED 1 3/8 TO 68 3/4 ALL ON NASDAQ UNITED HEALTHCARE SLUMPED 2 1/8 TO 37 7/8 ON THE BIG BOARD BIOGEN LOST 1 3/4 TO 30 ON NASDAQ THE CAMBRIDGE MASS BIOTECHNOLOGY CONCERN REPORTED FIRSTQUARTER EARNINGS OF 31 CENTS A SHARE DOWN FROM 32 CENTS LAST YEAR AT&T INCREASED 1 1/2 TO 52 1/8 IT HAD FIRSTQUARTER EARNINGS OF 80 CENTS A SHARE UP FROM 69 CENTS BEFORE AN ACCOUNTING ADJUSTMENT A YEAR EARLIER ANALYSTS HAD FORECAST NET INCOME OF ABOUT 77 CENTS BELL ATLANTIC JUMPED 2 3/8 TO 53 5/8 AFTER THE COMPANY POSTED FIRSTQUARTER PROFIT OF 91 CENTS A SHARE EXCLUDING A CHARGE A YEAR AGO THE PHILADELPHIABASED BABY BELL HAD A PROFIT OF 85 CENTS BEFORE A CHARGE DEAN WITTER DISCOVER RALLIED 2 TO 35 3/4 THE NEW YORK BROKERAGE AND CREDITCARD COMPANY HAD A FIRSTQUARTER PROFIT OF 123 A SHARE UP FROM 80 CENTS A YEAR EARLIER AND WELL ABOVE THE 93CENT MEAN ESTIMATE REPORTED BY IBES CLOROX ROSE 7/8 TO 48 COLGATEPALMOLIVE ADDED 1 3/8 TO 57 3/4 AND DIAL ROSE 3/4 TO 43 5/8 ALL THREE MAKERS OF HOUSEHOLD AND PERSONALCARE PRODUCTS REPORTED ONTARGET OR BETTERTHANEXPECTED QUARTERLY EARNINGS DSC COMMUNICATIONS INCREASED 2 1/8 TO 55 1/2 ON NASDAQ AFTER THE PLANO TEXAS TELECOMMUNICATIONSEQUIPMENT MANUFACTURER LATE TUESDAY SAID ITS EARNINGS ROSE TO 51 CENTS A SHARE IN THE FIRST QUARTER FROM 24 CENTS THE YEAR BEFORE IT HAS MORE SHARES OUTSTANDING IN THE LATEST PERIOD CHEYENNE SOFTWARE LOST 2 TO 22 3/4 ON THE AMEX AFTER THE ROSLYN HEIGHTS NY COMPANY WAS FEATURED IN A DOWNBEAT REPORT ON CNBC CABLE TELEVISION IN PART THE REPORT SAID CHEYENNE INSIDERS HAD SOLD SHARES OF THE COMPANY LAST MONTH AND IN FEBRUARY TIMOTHY HEEKIN HEAD OF BLOCK TRADING AT SALOMON BROTHERS SAID SOME OF THE MONEY PULLED OUT OF ECONOMICALLY SENSITIVE ISSUES WAS USED TO BUY STOCKS WITH HIGH DIVIDEND YIELDS SUCH AS UTILITIES AND TELEPHONE ISSUES CLEARLY PEOPLE ARE COMING OUT OF CYCLICALS AND LOOKING FOR SAFE HARBORS HE SAID THE RALLY IN UTILITIES MIGHT BE A POSITIVE SIGN FOR THE MARKET SAID RALPH BLOCH MARKET ANALYST AT RAYMOND JAMES & ASSOCIATES UTILITIES WIDELY SEEN AS A LEADING INDICATOR FOR THE REST OF THE MARKET TURNED LOWER LAST FALL MONTHS BEFORE THE REST OF THE MARKET THEY ARE NOW I'M CONVINCED DOING THE OPPOSITE SIGNALING A TURNAROUND HE SAID 9404210097 940421 LAW LEGAL BEAT GUN SWEEPS IN PUBLIC HOUSING MAY FIND SUPPORT ON HIGH COURT BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL ADVOCATES OF EXPANDING POLICE OFFICERS' AUTHORITY TO CONDUCT WEAPONS SEARCHES IN PUBLICHOUSING PROJECTS MAY HAVE A POWERFUL ALLY THE US SUPREME COURT ALTHOUGH THE HIGH COURT HASN'T BEEN ASKED TO ADDRESS THE CURRENT ISSUE LAWYERS SAY THE COURT'S DECISIONS OVER THE PAST 20 YEARS SUGGEST THAT IT MAY BE INCLINED TO GIVE POLICE WIDE LEEWAY TO HUNT FOR GUNS IN CRIMERIDDEN AREAS AT THE VERY LEAST THESE SUPREME COURT PRECEDENTS SHOULD GIVE THE CLINTON ADMINISTRATION AND ANTICRIME GROUPS ENOUGH AMMUNITION TO PROCEED WITH PLANS FOR MORE AGGRESSIVE SEARCHES IF THERE'S ONE AREA WHERE RICHARD NIXON'S HOPES OF A MORE CONSERVATIVE SUPREME COURT WERE FULFILLED IT'S IN THE FOURTH AMENDMENT SEARCHANDSEIZURE CASES SAYS AE DICK HOWARD A CONSTITUTIONALLAW SPECIALIST AT THE UNIVERSITY OF VIRGINIA FOURTH AMENDMENT RULINGS BY THE BURGER AND REHNQUISTLED COURTS REFLECT A SENSE THAT THE DEMANDS OF LAW ENFORCEMENT ARE SUCH THAT THE COURT SHOULDN'T BE TOO PUNCTILIOUS IN SECONDGUESSING THE NEEDS OF THE POLICE AFTER A FEDERAL JUDGE EARLIER THIS MONTH FORBADE THE CHICAGO HOUSING AUTHORITY FROM CONTINUING ITS GUNSWEEP POLICY PRESIDENT CLINTON ANNOUNCED A PLAN DESIGNED TO SKIRT THE CONSTITUTIONAL PROBLEMS RAISED BY THE CHICAGO CASE THE CLINTON PROPOSAL WOULD ENCOURAGE LOCAL POLICE TO MAKE BROADER USE OF THEIR CURRENT POWER TO ENTER AND SEARCH PUBLICHOUSING APARTMENTS WITHOUT WARRANTS IN EMERGENCY SITUATIONS IT WOULD ALSO URGE LOCAL PUBLICHOUSING AUTHORITIES TO ASK TENANTS SIGNING LEASES TO AGREE TO WAIVE THEIR FOURTHAMENDMENT RIGHTS IN SOME INSTANCES IN ORDER FOR THE CLINTON PROPOSAL OR OTHER SIMILAR ALTERNATIVES TO MEET CONSTITUTIONAL MUSTER THEY WOULD HAVE TO PASS A VARIETY OF TESTS LAID OUT IN THE LANGUAGE OF THE FOURTH AMENDMENT ITSELF AND IN PAST SUPREME COURT CASES TO BEGIN WITH THE AMENDMENT FORBIDS ONLY UNREASONABLE SEARCHES ALLOWING THE COURT TO MAKE A CASEBYCASE DETERMINATION OF WHETHER A PARTICULAR SEARCH WAS APPROPRIATE IN ADDITION WARRANTLESS SEARCHES CAN'T BE CONDUCTED ANYWHERE AN INDIVIDUAL HAS A LEGITIMATE EXPECTATION OF PRIVACY OVER THE PAST TWO DECADES LAWYERS SAY THE COURT HAS APPEARED INCREASINGLY WILLING TO RULE THAT PARTICULAR SEARCHES SATISFY THESE TESTS IN A 1990 CASE FOR EXAMPLE THE COURT RULED THAT IT WASN'T UNCONSTITUTIONAL FOR POLICE TO STOP CARS AT FIXED POINTS TO CHECK FOR SIGNS OF INTOXICATION EVEN IF THE OFFICERS HAD NO REASON TO BELIEVE A PARTICULAR DRIVER WAS DRUNK IN OTHER RECENT CASES THE COURT HAS BROADENED THE ABILITY OF POLICE TO UNDERTAKE WARRANTLESS SEARCHES OF BUS PASSENGERS SCRUTINIZE A DEPOSITOR'S BANK RECORDS AND CONDUCT PROTECTIVE SWEEPS WHEN MAKING ARRESTS SOME LEGAL SPECIALISTS DOWNPLAY THE SIGNIFICANCE OF THESE RULINGS SAYING THE BASIC CONTOURS OF FOURTH AMENDMENT LAW HAVEN'T CHANGED MUCH SINCE THE 1960S THIS COURT ISN'T ERODING BASIC RIGHTS SAYS COLUMBIA UNIVERSITY LAW PROF RICHARD UVILLER BUT OTHER LAWYERS CONTEND THAT THE RECENT CASES SHOW THAT THE CURRENT COURT IS PREDISPOSED TO SIDE WITH VICTIMS RATHER THAN CRIMINALS IN SEARCHANDSEIZURE CASES THE JUDGES LIVE IN THE SAME TIME WE DO THEY READ THE PAPERS THEY WATCH TELEVISION THEY CAN'T BE UNAWARE OF LIFE IN THE INNER CITY SAYS PROF HOWARD SUPPORTERS OF GUN SWEEPS MAY ALSO BE ABLE TO ARGUE SUCCESSFULLY THAT THE DANGER OF GUN VIOLENCE IN THE PROJECTS ITSELF CONSTITUTES THE KIND OF EMERGENCY CIRCUMSTANCE IN WHICH THE COURT HAS PREVIOUSLY UPHELD WARRANTLESS SEARCHES SUCH CIRCUMSTANCES HAVE INCLUDED CASES IN WHICH POLICE REASONABLY BELIEVED THAT A SEARCH WOULD HELP PROTECT LIVES OR AVOID SERIOUS INJURY IF A COURT DETERMINES THAT A HOUSING PROJECT STARTS TO LOOK LIKE LITTLE GORAZDE WARRANTLESS SEARCHES ARE PROBABLY PERMISSIBLE ACCORDING TO DAN POLSBY A NORTHWESTERN UNIVERSITY LAW PROFESSOR INDEED ONE REASON FOR THIS MONTH'S TRIALCOURT RULING AGAINST THE CHICAGO HOUSING AUTHORITY WAS THAT MOST OF THE GUN SWEEPS AT ISSUE OCCURRED SEVERAL DAYS AFTER MAJOR SHOOTING ACTIVITY AT THAT LATE DATE THE JUDGE CONCLUDED EMERGENCY OR EXIGENT CIRCUMSTANCES NO LONGER EXISTED LAWYERS SAY THE MOST VULNERABLE PART OF THE PRESIDENT'S PROPOSAL IS ITS PROVISION CALLING FOR PUBLICHOUSING TENANTS TO WAIVE CERTAIN OF THEIR FOURTHAMENDMENT RIGHTS PREVIOUS CASES HAVE RULED THAT A GOVERNMENTPROVIDED BENEFIT SUCH AS SHELTER CAN'T BE CONDITIONED ON THE WAIVER OF CONSTITUTIONAL RIGHTS ALTHOUGH A TRULY VOLUNTARY WAIVER WOULD BE ACCEPTABLE BUT THE EXISTING CASES ON SEARCH AND SEIZURE SUGGEST THAT SUCH A WAIVER MAY NOT EVEN BE NECESSARY GIVEN THE DIRECTION OF THE RECENT SUPREME COURT CASES INCLUDING A WAIVER JUST ADDS ONE MORE SAFEGUARD SAYS PROF HOWARD 9404210096 940421 THE RISE AND FALL OF HOPE IN LA TONY BOGARD'S STORY GANG LEADER TRIED BUSINESS AND SPOKE OF REGENERATION BUT WAS SHOT TO DEATH BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES AS HE SAT ON A BENCH IN WHAT WAS ONCE ENEMY TERRITORY HIS TRADEMARK GEORGETOWN UNIVERSITY CAP ON HIS HEAD TONY BOGARD GANGSTER PEACEMAKER CORPORATE EXECUTIVE TALKED OF BUILDING CATHEDRALS FROM THE ASHES THERE WOULD BE STORES RECREATIONAL FACILITIES AND GOOD JOBS FOR BLACKS ABOVE ALL THERE WOULD BE AN END TO THE DEADLY GANG WARFARE IN WHICH MR BOGARD HIMSELF HAD PARTICIPATED WE'RE GOING TO MAKE THIS HAPPEN HE VOWED THAT WAS BACK IN JUNE 1992 WHEN MR BOGARD'S DREAMS AND THOSE OF OTHERS LOOKING TO SOLVE THE ILLS OF THIS CITY SEEMED CLOSER TO COMING TRUE THAN THEY DO TODAY LOS ANGELES HAD JUST BEEN THROUGH ITS TERRIBLE RIOTS NATIONAL AND CIVIC LEADERS WERE PROMISING A MASSIVE ATTACK ON AMERICA'S URBAN PROBLEMS USING LOS ANGELES AS THE PROTOTYPE APRIL 29 WILL BE THE SECOND ANNIVERSARY OF THE RIOTS THAT FOLLOWED THE ACQUITTAL OF FOUR LOS ANGELES POLICE OFFICERS IN THE BEATING OF BLACK MOTORIST RODNEY KING BUT MR BOGARD WON'T BE THERE TO OBSERVE IT EARLY IN THE EVENING OF JAN 13 HE WAS SHOT TO DEATH IN A PARKING LOT OF IMPERIAL COURTS THE HOUSING PROJECT WHERE HE GREW UP CHARGED WITH MURDER IN THE SHOOTING IS ANOTHER YOUNG BLACK MAN WHO AUTHORITIES SAY BELONGED TO THE SAME STREET GANG AS MR BOGARD WELL BEFORE MR BOGARD'S DEATH AT THE AGE OF 30 HIS DREAMS HAD FADED HIS QUICK TEMPER AND LIMITED SKILLS PLAYED A ROLE IN THAT SO DID HIS GANG PAST WHICH SCARED OFF POSSIBLE BUSINESS PARTNERS BUT MR BOGARD ALSO WAS AFFECTED BY THE TORPOR THAT FOLLOWED THE LOS ANGELES RIOTS PARTICULARLY ONCE IT BECAME CLEAR THAT IT WAS NOT GOING TO BE A LONG HOT SUMMER FOR CITIES ACROSS THE NATION EVEN IN LOS ANGELES ENTHUSIASM FOR URBAN REGENERATION WAS QUICK TO COOL REBUILD LOS ANGELES THE OFFICIAL RIOTRECOVERY ORGANIZATION THAT HAD BEEN LAUNCHED WITH GREAT FANFARE IS NOW ON A BACK BURNER THE CELEBRATED PETER UEBERROTH IS GONE AS RLA'S LEADER HAVING BEEN REPLACED BY A RELATIVELY UNKNOWN LATINO BUSINESSWOMAN NAMED LINDA GRIEGO NO LONGER DO RLA OFFICIALS BOLDLY TALK OF RAISING BILLIONS OF DOLLARS AND CREATING TENS OF THOUSANDS OF JOBS NOW THE ORGANIZATION IS FOCUSING ON BEING A COUNSELING AND AID CENTER FOR SMALL BUSINESSES IN THE CITY A MORE REALISTIC AGENDA SAYS MS GRIEGO BEING REALISTIC WAS NOT MR BOGARD'S STYLE HE WAS TRYING TO LEAP FROM THE WORLD OF GANGS TO A MORE MAINSTREAM LIFE AND FOUND HIMSELF CAUGHT IN BETWEEN SAYS BARBARA COTTMAN BECNEL WHO IS WRITING A BOOK ABOUT MR BOGARD AND THE BLACK STREET GANGS OF LOS ANGELES TONY WAS IN A VERY PRECARIOUS POSITION SHE SAYS BORN TYRONE THOMAS HE CHOSE TONY BOGARD AS HIS STREET NAME WHILE GROWING UP IN WATTS HE WAS A CRIP THE CRIPS AND THE BLOODS ARE THE CITY'S TWO MAJOR BLACK GANGS AND LONG WERE DEADLY ENEMIES TALL ATHLETIC AND CHARISMATIC MR BOGARD BECAME A CRIP LEADER ACTIVE IN DRUG DEALING AND GANG VIOLENCE THREE TIMES HE WAS CONVICTED OF DRUGRELATED CRIMES AND ONCE OF ATTEMPTED MURDER FOR WHICH HE GOT NINE YEARS' PROBATION IN 1991 HE WAS NEARLY KILLED AND WAS LEFT WITH A PERMANENT LIMP BY EIGHT BULLETS FROM AN AK47 ASSAULT RIFLE HE DESCRIBED IT AS A HIT OR SOMETHING BUT HE DIDN'T SAY WHO SHOT HIM MR BOGARD WOULD OFTEN CITE THAT EVENT AS A TURNING POINT IN HIS LIFE IT HELPED CONVINCE HIM THAT THE GANG WARFARE THAT WAS CLAIMING HUNDREDS OF VICTIMS A YEAR HAD TO STOP ALONG WITH OTHER BLOOD AND CRIP LEADERS HE NEGOTIATED A GANG TRUCE AROUND THE TIME OF THE RIOTS BECAUSE OF THE PUBLICITY THAT ATTENDED THE VIOLENCE THE TRUCE LEADERS BECAME INSTANT CELEBRITIES MR BOGARD AND TWO OTHERS WERE FEATURED IN A FRONTPAGE STORY IN THIS NEWSPAPER WHICH DESCRIBED THEIR EFFORTS TO START SEVERAL BUSINESSES MR BOGARD AND TYRONE BAKER A RIVAL BLOOD LEADER EVENTUALLY COFOUNDED A NONPROFIT CORPORATION CALLED HANDS ACROSS WATTS INC TO PROMOTE THE TRUCE AND TO IMPROVE LIFE IN WATTS MR BOGARD BECAME PRESIDENT MR BAKER VICE PRESIDENT THE ORGANIZATION PLANNED RETAIL STORES A MULTIMILLIONDOLLAR RECYCLING PLANT SUMMER CAMPS AND LOWCOST HOUSING MR BOGARD CLEARLY ENJOYED HIS PROMINENCE REGULARLY HOLDING BIG BARBECUES AT IMPERIAL COURTS OR ORGANIZING FIELD TRIPS FOR CHILDREN TO THE BEACH OR DODGER STADIUM YOU PLAN TO GET OUR WHOLE STORY IN THAT LITTLE NOTEBOOK MR BOGARD ONCE JOKINGLY ASKED A REPORTER DURING AN INTERVIEW MOST OF HANDS ACROSS WATTS'S PLANS HOWEVER ARE STILL JUST THAT LIKE MR UEBERROTH WHO HEADED THE 1984 SUMMER OLYMPICS IN LOS ANGELES AND LATER SERVED AS COMMISSIONER OF BASEBALL MR BOGARD FOUND THAT ATTRACTING BIGTIME CORPORATE AND FOUNDATION SUPPORT FOR INNERCITY PROJECTS WAS A LOT EASIER TO TALK ABOUT THAN TO ACCOMPLISH MR BOGARD'S OWN SHORTCOMINGS DIDN'T HELP HIS READING SKILLS WERE POOR HIS LANGUAGE THE JARGON OF THE STREETS THOUGH HE COULD BE CHARMING HE ALSO HAD A QUICK TEMPER KEN ROSENBLOOD A WHITE ENTREPRENEUR WHO SOLD ELASTICIZED SHOELACES SAW MR BOGARD EXPLODE IN ANGER WHEN MR ROSENBLOOD BROACHED THE IDEA THAT GANG MEMBERS GET INTO THE BUSINESS HE STARTED CALLING ME WHITEY' AND GOT VERY HOSTILE MR ROSENBLOOD SAID SHORTLY AFTER THE CONFRONTATION MR BOGARD WAS OFFENDED IMAGINE HE SAID THE GUY WANTED US TO SELL HIS SHOELACES ON THE STREET MR BOGARD OFTEN SEEMED DISAPPOINTED BY WHAT THE OUTSIDE WORLD HAD TO OFFER COMPARED TO THE STATUS HE ENJOYED IN THE GANG WORLD OF SOUTH CENTRAL LOS ANGELES ON THE STREETS TONY HAD BEEN THE EQUIVALENT OF A CEO SAYS MS BECNEL THE AUTHOR BUT TO MANY IN THE MAINSTREAM HE WAS JUST ANOTHER GANG MEMBER IN A MOVE THAT DREW CRITICISM FROM SOME OF HIS PEERS MR BOGARD TURNED FOR HELP TO PATRICK MULLIGAN A WHITE LOCAL GOLFCOURSE DESIGNER WHO BECAME INTERESTED IN HELPING HANDS ACROSS WATTS WORKING AS THE ORGANIZATION'S EXECUTIVE DIRECTOR MR MULLIGAN TALKED WITH ABOUT 30 CORPORATIONS AND FOUNDATIONS BUT CAME UP WITH ONLY ABOUT 75000 IN DONATIONS AS PART OF THE APPROXIMATELY 125000 HANDS ACROSS WATTS HAS RAISED ALTOGETHER MOST OF THAT MONEY SAYS MR MULLIGAN WAS SPENT ON SALARIES OFFICE EXPENSES AND VARIOUS COMMUNITY EVENTS INCLUDING A TRUCE CONFERENCE ON THE FIRST ANNIVERSARY OF THE RIOTING HANDS ACROSS WATTS ALSO HELPED ARRANGE A 200000 GRANT FROM THE COUNTY TO HIRE LOCAL RESIDENTS TO DO MAINTENANCE WORK AT SOME OF THE HOUSING PROJECTS THE GANG TRUCE IS SAID TO HAVE HELPED REDUCE KILLINGS LOS ANGELES COUNTY SAYS GANGRELATED DEATHS DROPPED IN 1993 TO 702 FROM 803 THE PREVIOUS YEAR ON THE DAY HE DIED MR BOGARD HAD TALKED OF GOING TO A DICE GAME TO TRY TO RAISE 1000 TO PAY OFF A HANDS ACROSS WATTS PHONE BILL SAYS MS BECNEL SHE SAYS HE LEFT HOME WITHOUT THE BULLETPROOF VEST HE USUALLY WORE HAVING LENT IT TO A FRIEND DETAILS OF HIS DEATH ARE SKETCHY HE WAS SHOT SIX TIMES IN THE FRONT AND BACK SAYS SCOTT CARBAUGH A DEPUTY DISTRICT ATTORNEY THE MAN IN CUSTODY CHARGED WITH THE SHOOTING RODNEY COMPTON CLAIMS HE FIRED IN SELFDEFENSE AFTER MR BOGARD THREATENED HIM WITH A GUN IN A DISPUTE OVER AN ALLEGED DRUG DEAL THE PROSECUTOR SAYS NO GUN WAS FOUND WITH MR BOGARD HE ADDS MS BECNEL AND MR MULLIGAN SAY THAT SO FAR AS THEY KNOW MR BOGARD WAS NO LONGER INVOLVED IN DEALING DRUGS THE BOARD OF HANDS ACROSS WATTS PLANS TO MEET SOON TO TRY TO REGROUP BUT MR BAKER THE COFOUNDER WON'T BE THERE EITHER HE IS IN A FEDERAL PRISON ON A WEAPONSPOSSESSION CHARGE AND ISN'T EXPECTED TO BE RELEASED UNTIL NEXT YEAR NOR IS MR BAKER SURE ABOUT HIS FUTURE WITH HANDS ACROSS WATTS ONCE I GET HOME I'LL HAVE TO SEE WHAT THE ATMOSPHERE IS HE SAYS IN A PRISON INTERVIEW THINGS CHANGE 9404210095 940421 ENTERTAINMENT TV HOST PLANS TO CASH IN HIS SOUVENIRS BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JOE FRANKLIN HAS SPENT HIS LIFE PREPARING TO SELL THE PAST IN HIS 43YEAR CAREER IN LOCAL TELEVISION MR FRANKLIN ESTIMATES HE CONDUCTED MORE THAN 300000 INTERVIEWS AND ALONG THE WAY HE PICKED UP THOUSANDS OF SOUVENIRS CHARLIE CHAPLIN'S BOWLER HAT MARILYN MONROE'S EYESHADOW BOX AND A SHOT GLASS USED BY WC FIELDS NOW THAT NOSTALGIA IS IN MR FRANKLIN FIGURES IT'S TIME TO LIQUIDATE MR FRANKLIN'S PRODUCTION COMPANY HAS FORMED A PARTNERSHIP WITH SPORTS HEROES INC A NEW JERSEY SPORTS MEMORABILIA COMPANY TO MARKET HIS COLLECTIBLES JEROME ZUCKERMAN PRESIDENT OF SPORTS HEROES SAYS THAT SOME ITEMS WILL BE AUCTIONED SOME WILL BE SOLD TO PRIVATE CLIENTS AND SOME MAY BE SOLD ON THE HOME SHOPPING NETWORKS ALREADY SEVERAL HUNDRED THOUSAND ITEMS HAVE BEEN TRUCKED FROM FIVE STORAGE SITES TO A WAREHOUSE IN THE PHILADELPHIA SUBURBS FOR CATALOGING MR FRANKLIN FIGURES THE COLLECTION IS WORTH BETWEEN 2 MILLION AND 5 MILLION TERRY KOVELL COAUTHOR OF KOVELL'S ANTIQUES AND COLLECTIBLES PRICE LIST SAYS MR FRANKLIN'S COLLECTION IS A BIT LIKE A PT BARNUM THING SHE CAN'T SEE OFFERING MORE THAN A COUPLE HUNDRED BUCKS FOR SOME OF THE BETTERKNOWN ITEMS SHE SAYS BUT THE QUANTITY MAY BE WORKING IN HIS FAVOR HE COULD DO SIDE SHOWS WITH THEM SHE SAYS AND THEY'D HAVE SOME ADDED GIMMICK VALUE SINCE HE OWNS THEM MR FRANKLIN'S BANTER MAY BE UNFAMILIAR TO PEOPLE WHO LIVE WEST OF THE DELAWARE WATER GAP BUT FOR LATENIGHT NEW YORKAREA TV VIEWERS HE IS THE ARCHETYPAL UNCTUOUS TV HOST ON SATURDAY NIGHT LIVE BILLY CRYSTAL DID A JOE FRANKLIN TAKEOFF IN WHICH HE PLASTERED DOWN HIS HAIR AND WAVED TO THE CROWD HELLO MY FRIENDS HE WOULD SAY THIS IS JOE FRANKLIN AND THIS IS ONE FOR THE ARCHIVES ONE FOR THE VAULTS THEN HE WOULD INTRODUCE STRANGE GUESTS AND HOLD UP PRODUCTS MADE BY THE SHOW'S SPONSORS SAYS RICHARD ORNSTEIN MR FRANKLIN'S PRODUCER THE MUSEUM OF TELEVISION & RADIO IN NEW YORK IS HOLDING A JOE FRANKLIN SEMINAR THIS MONTH JOE FRANKLIN'S ALWAYS A PRESENCE IN NEW YORK CITY YOU THINK OF HIM AS AN ALMOST DAMON RUNYON TYPE OF CHARACTER SAYS RON SIMON TELEVISION CURATOR OF THE MUSEUM HIS VOICE IS VERY MUCH PART OF THE CITY MR FRANKLIN WHO RETIRED FROM TV LAST YEAR FOUNDED JOE FRANKLIN PRODUCTIONS INC IN THE MID1980S AND ISSUED STOCK I'VE ALWAYS BEEN A LITTLE JEALOUS OF OTHER TALKSHOW HOSTS HE SAYS DICK CLARK MERV GRIFFIN JOHNNY CARSON THEY ALL HAD PRODUCTION COMPANIES THAT DID WELL AND LET'S FACE IT I'VE GOT AN EGO TOO SO I DEVELOPED MY OWN PRODUCTION COMPANY SO FAR THOUGH THE COMPANY'S STOCK HAS TRADED FOR PENNIES AND THE PRODUCTION COMPANY HASN'T PRODUCED MUCH OF ANYTHING PAST EFFORTS AT MARKETING HIS COLLECTIBLES INVOLVED TWO RARE VIDEOS FROM HIS NOSTALGIA COLLECTION PACKAGED IN GARISH BURNT ORANGE JUVENILE COURT STARRING BETTE DAVIS AND DAUGHTER OF THE DRAGON FEATURING WARNER OLAND AS DR FU MANCHU THE COMPANY PRINTED ABOUT 5000 AND SOLD THEM ALL SAYS MR FRANKLIN HE ALSO HAD A FINGER IN A SHORTLIVED MAGAZINE VENTURE JOE FRANKLIN'S NOSTALGIA WITH THE PROCEEDS FROM LIQUIDATING HIS WHOLE COLLECTION MR FRANKLIN SAYS WE HAVE BIG PLANS FOR FUTURE PRODUCTIONS AND PERHAPS A NOSTALGIA PROGRAM OR TWO OR MAYBE JOE FRANKLIN MEMORY LANE CRUISES NOSTALGIA CRUISES IT COULD REALLY BE BIG PERHAPS THE BIGGEST STRETCH IS MR FRANKLIN'S PLAN TO OFFER A NEW EXERCISE VIDEO NOSTALGIARCISE MR FRANKLIN WHO AT 65 IS SMALLISH AND ROUND PLANS TO DO A VARIETY OF SHOULDER AND NECK EXERCISES AT HIS DESK WITH HELP FROM PROFESSIONAL WRESTLERS AND BEAUTIFUL YOUNG GIRLS AND GOLDEN OLDIES PLAYING IN THE BACKGROUND MR FRANKLIN HAS A STRONG CLAIM ON THE NOSTALGIA BUSINESS BUT IT'S UNLIKELY THAT THE CLAIM IS AS STRONG AS HE THINKS YOU KNOW WHAT I INVENTED IT I INVENTED THE WORD NOSTALGIA HE SAYS I ALSO INVENTED COLLECTIBLE AND THE TERM COLLECTOR'S ITEM SURE THEY'RE ALL IN THE DICTIONARY BUT I INTRODUCED THEM TO THE POPULAR CULTURE HE HAS NO CLAIM AT ALL ON THE WORD ORGANIZED THOUGH THROUGHOUT HIS CLUTTERED OFFICE JUST OFF TIMES SQUARE BOXES OF BOOKS POSTERS RECORDS PROGRAMS MAGAZINES CLOTHES AND COUNTLESS OTHER KNICKKNACKS LITTER THE FLOORS AND THE WALLS TABLES CHAIRS AND WINDOWS WE'VE GOT RUDY VALLEE'S MEGAPHONE EDWARD G ROBINSON'S COFFEE POT AND ONE SHOE FROM CARMEN MIRANDA HE SAYS ONE SHOE I CAN'T SEEM TO FIND THE OTHER ONE BUT IT'LL PROBABLY TURN UP WITH SO MANY NOSTALGIA ITEMS IN HIS POSSESSION PEOPLE SOMETIMES ASK WHAT MR FRANKLIN'S COLLECTION METHODOLOGY WAS ACTUALLY HE SAYS MOST PEOPLE JUST LEFT THINGS BEHIND AT THE SHOW 9404210094 940421 CREDIT MARKETS TREASURY PRICES PUSH UPWARD AS BOND MARKET CONTINUES TO RECOVER FROM PLUNGE EARLY IN WEEK BY THOMAS D LAURICELLA AND JACQUELINE DOHERTY SPECIAL TO THE WALL STREET JOURNAL NEW YORK PRICES OF US TREASURY NOTES AND BONDS RALLIED YESTERDAY AS THE MARKET CONTINUED TO RECOVER FROM THE SELLOFF EARLY IN THE WEEK TRADERS STRESSED THERE WAS NO NEWS BEHIND THE UPWARD PUSH INSTEAD THEY DESCRIBED IT AS A BEARMARKET TECHNICAL RALLY MOST OF THE BUYING WAS DEEMED SHORTCOVERING DURING WHICH TRADERS SCRAMBLE TO BUY BACK SECURITIES THEY SOLD BETTING THAT PRICES WOULD FALL MORE IMPORTANTLY PLAYERS SAID SO FAR THIS MONTH THERE HAS BEEN AN ABSENCE OF THE CAPITULATION SELLING THAT OVERWHELMED THE BOND MARKET IN FEBRUARY AND MARCH AT THAT TIME THE MARKET WAS BLINDSIDED BY WAVES OF HEDGE SELLING ESPECIALLY AS INVESTORS FRANTICALLY DUMPED MORTGAGEBACKED AND MUNICIPAL SECURITIES DEALERS NOTED THAT IN YESTERDAY'S RALLY THE BEST PERFORMING SECTOR OF THE MARKET WAS THE PART HARDEST HIT BY HEDGE SELLINGTREASURYS MATURING IN FIVE TO 10 YEARS THE PRICE OF THE 10YEAR NOTE ROSE MORE THAN 3/8 POINT OR MORE THAN 375 FOR A BOND WITH A 1000 FACE VALUE TO 91 27/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF PRICE DROPPED TO 702 FROM 709 ON TUESDAY THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 1/2 POINT TO 87 3/32 TO YIELD 731 DOWN FROM 737 THE POSITIONS MOST VULNERABLE TO ABRUPT MARKET DECLINES HAVE ALREADY BEEN SOLD OFF SAID WILLIAM V SULLIVAN JR SENIOR VICE PRESIDENT AT DEAN WITTER REYNOLDS THOSE COCONUTS HAVE ALREADY BEEN SHAKEN OUT OF THE TREE IN THE WAKE OF MONDAY'S TIGHTENING BY THE FEDERAL RESERVE THERE IS ALSO A GREATER DEGREE OF COMFORT THAT THE FED REALLY INTENDS TO SQUASH INFLATIONARY PRESSURES CONTENDED MICKEY LEVY CHIEF FINANCIAL ECONOMIST AT NATIONSBANC CAPITAL MARKETS THE MARKET FEELS LIKE THE FED IS GOING TO GET AHEAD OF THE INFLATION CURVE HE SAID WITHOUT THE HEDGE AND OTHER PANIC SELLING TRADERS HAVE BEEN RELUCTANT TO SET NEW SHORT SALES ON TOP OF THE ALREADY HUGE BASE OF SHORT POSITIONS IN THE MARKET PLAYERS SAID THERE'S BEEN AN UNDERLYING SHORT BID BUILDING IN THE MARKET WHICH HAS STOPPED IT FROM MAKING SIGNIFICANTLY LOWER PRICES AND HAS HELPED US MAKE THIS CORRECTION SAID SAL GRECO MARKET STRATEGIST AT SANWA SECURITIES INC THAT MARKS A CHANGE FROM RECENT WEEKS WHERE JUST ABOUT ANY SHORT POSITION MADE MONEY AND TRADERS SOLD JUST ABOUT ANYTHING THEY COULD GET THEIR HANDS ON NOW THEY ARE WORRIED ABOUT PRICES RISING PEOPLE ARE A BIT FEARFUL ABOUT BEING TOO SHORT BECAUSE IN A BEAR MARKET THE CORRECTIONS CAN BE FAST AND VIOLENT ONE DEALER SAID REFLECTING THE SLIGHTLY LESS NEGATIVE TONE THE MARKET WAS ABLE TO WEATHER STRONGERTHANEXPECTED ECONOMIC NEWS WHEN THE COMMERCE DEPARTMENT REPORTED THAT HOUSING STARTS JUMPED 12 DURING MARCH FOLLOWING AN 8 DROP IN FEBRUARY PRICES DIPPED IN RESPONSE TO THE REPORT BUT SELLING DIDN'T LAST FOR LONG BOND INVESTORS OFTEN REACT NEGATIVELY TO NEWS OF ECONOMIC STRENGTH BECAUSE THEY FEAR THAT IT WILL LEAD TO INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN WE DID SEE SOME WILLINGNESS TO SELL IN THE WAKE OF THE HOUSINGSTARTS DATA BUT THE MARKET HELD ITS GROUND SAID MR SULLIVAN OF DEAN WITTER THE TREASURY ANNOUNCED YESTERDAY THAT IT WILL SELL 17 BILLION OF TWOYEAR NOTES AND 11 BILLION OF FIVEYEAR NOTES NEXT WEEK THE OFFERING SIZES WERE IN LINE WITH EXPECTATIONS IN WHENISSUED TRADING THE TWOYEAR NOTE WAS YIELDING 573 LATE YESTERDAY WHILE THE FIVEYEAR NOTE WAS YIELDING 667 TRADERS NOW HAVE TURNED THEIR ATTENTION TO THE PHILADELPHIA FEDERAL RESERVE'S BUSINESS OUTLOOK SURVEY SCHEDULED TO BE RELEASED THIS MORNING EARLIER THIS YEAR STRONG READINGS ON THE PHILADELPHIA FED'S INFLATION INDEX HELPED TRIGGER A SIGNIFICANT DOWNDRAFT IN TREASURYS THE CORPORATEBOND MARKET SETTLED DOWN TO BUSINESS YESTERDAY AS CONAGRA CAPITAL LLC SOCIETY NATIONAL BANK AND HELLER FINANCIAL INC EACH SOLD BONDS ABOUT 123 BILLION OF DEBT WAS SOLD TRADING IN THE INVESTMENTGRADE MARKET WAS MODERATE WITH SPREADS UNCHANGED TO SLIGHTLY WIDER ONE TRADER SAID THE JUNKBOND MARKET SEEMED TO PICK UP THE MOOD IN THE TREASURY MARKET AND ALSO STABILIZED WITH PRICES ENDING UNCHANGED USAIR GROUP'S USAIR INC'S 10 GUARANTEED SENIOR NOTES DUE 2003 DROPPED 25 POINTS OR 25 FOR A BOND WITH A 1000 FACE VALUE TO 64 THE YIELD ROSE TO 182 FROM 1743 TRADERS SAID THE PRICE DROP FOLLOWED NEWS THAT USAIR INC POSTED A FIRSTQUARTER LOSS OF 1901 MILLION COMPARED WITH A YEARAGO LOSS OF 1084 MILLION CONAGRA CAPITAL LLC A UNIT OF CONAGRA INC JUMPED INTO THE PREFERREDSTOCK MARKET WITH 100 MILLION OF CUMULATIVE PERPETUAL PREFERRED SECURITIES PRICED WITH A 9 DIVIDEND YIELD THE PREFERRED MARKET DROPPED AS INTEREST RATES ROSE OVER THE PAST FEW WEEKS AND DEALERS WERE CAUGHT WITH UNSOLD INVENTORIES FROM DEALS PRICED LATE IN MARCH ONE PREFERRED SYNDICATE OFFICIAL SAID AS A RESULT OF THE MARKET WEAKNESS CONAGRA CUT THE SIZE OF ITS DEAL IN HALF TO 100 MILLION AND INCREASED THE YIELD CONAGRA CAPITAL LLC WAS SPECIFICALLY SET UP TO SELL THIS PREFERRED AND LOAN THE PROCEEDS TO ITS PARENT CONAGRA INC AS A RESULT CONAGRA INC IS ABLE TO TAKE A TAX DEDUCTION ON THE INTEREST EXPENSE IT PAYS TO CONAGRA CAPITAL SAID WALTER CASEY VICE PRESIDENT IN CORPORATE COMMUNICATIONS AT CONAGRA IF TAX LAWS PREVENT THE COMPANY FROM TAKING THE TAX DEDUCTION CONAGRA HAS THE RIGHT TO CONVERT THE PREFERRED INTO DEBT WITH THE SAME YIELD THE PROSPECTUS STATES CONAGRA DECIDED TO SELL THIS SECURITY BECAUSE IT RECEIVES EQUITY TREATMENT WHILE PROVIDING THE COMPANY WITH THE TAX DEDUCTION MR CASEY SAID THIS WAS THE FIRST DEAL SOLD THAT TAKES ADVANTAGE OF A RECENT RULING FROM THE SECURITIES AND EXCHANGE COMMISSION THAT ALLOWS A COMPANY TO SET UP A LIMITED LIFE CORPORATION IN THE US PREFERRED SOURCES SAID BUYERS RETURNED TO THE MUNICIPALBOND MARKET IN FORCE BOOSTING PRICES OF ACTIVELY TRADED ISSUES 1/2 POINT OR MORE THE MARKET WAS DUE FOR A REBOUND AFTER GETTING A LITTLE OVERSOLD IN THE PAST FEW DAYS SAID ONE TRADING MANAGER HE NOTED HOWEVER THAT YESTERDAY'S CLIMB SEEMED TO BE MORE LIKE A BOUNCE IN A DOWNWARD TRENDING MARKET THAN ANYTHING ELSE AMONG ACTIVELY TRADED ISSUES ATLANTA'S 6 BONDS DUE 2021 WERE QUOTED 7/8 STRONGER AT 94 1/2 YIELDING 643 NEWLY PRICED ISSUES THAT DREW BUYERS INCLUDED THE TEXAS PUBLIC FINANCE AUTHORITY'S 31723 MILLION SERIES 1994 IMPROVEMENT BONDS THOSE BONDS WERE WON BY A GOLDMAN SACHS & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 5841 YIELDS RANGE FROM 430 IN 1996 TO 615 IN 2013 AND 2014 BOTH MOODY'S INVESTORS SERVICE AND STANDARD & POOR'S HAVE RATED THE BONDS DOUBLEA THE OFFERING IS SOLD GOLDMAN SACHS SAID MORTGAGE SECURITIES WERE QUIETLY FIRMER BUT LAGGED TREASURYS MORTGAGE SECURITIES HAVE PERFORMED BETTER THAN GOVERNMENTS MANY TIMES SINCE RATES BEGAN TO RISE AND THAT'S UNUSUAL TRADERS POINT OUT NORMALLY INVESTORS AVOID BUYING BONDS WHEN RATES RISE AND THEY PARTICULARLY AVOID BONDS WHOSE EFFECTIVE MATURITIES CAN CHANGE WHEN RATES DO SUCH AS MORTGAGES BUT YESTERDAY'S UNDERPERFORMANCE AND GENERALLY SLOW TRADE COULD BE JUST WHAT THE MARKET NEEDS TO BRING BUYERS IN SAYS JOSEPH HU DIRECTOR OF MORTGAGE RESEARCH AT OPPENHEIMER & CO RIGHT NOW THOUGH MOST INVESTORS AREN'T WILLING TO TAKE THE PLUNGE MEANWHILE GINNIE MAE 8S FOR MAY DELIVERY WERE UP 6/32 AT 99 23/32 FREDDIE MAC GOLD 8S FOR MAY WERE UP 7/32 AT 100 3/32 FANNIE MAE 8S FOR MAY WERE UP 7/32 AT 99 30/32 AND THE TREASURY 5 7/8 10YEAR NOTE WAS UP 13/32 AT 91 28/32 ADDITIONALLY CHRYSLER CORP PRICED ITS SECOND AUTOLOAN ASSETBACKED DEAL OF THE YEAR YESTERDAY IT'S A FIVEPART OFFERING TOTALING 15 BILLION THE LARGEST PART TOTALED 4247 MILLION OF TOTALRATEOFRETURN NOTES THAT WERE PRICED TO YIELD 43 BASIS POINTS OVER THE TREASURY'S THREEYEAR NOTE THE NOTES HAVE A 29 YEAR AVERAGE LIFE BEAR STEARNS & CO WAS LEAD UNDERWRITER 9404210093 940421 POLITICS & POLICY FOR TOUCHES TO MAKE A PAC PARTY MEMORABLE SUCH AS CONFETTI COWS LAWMAKERS TURN TO PROS BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IS THIS A FUN TOWN OR WHAT DEMOCRAT OR REPUBLICAN THEY'RE ALL PARTY ANIMALS WHEN MEMBERS OF CONGRESS HOST FUNDRAISERS YOU GET PEOPLE WHO CALL US AND SAY HEY WHEN'S RICK LEHMAN HAVING THAT ASPARAGUS EVENT' SAYS STEVE JOST ONE OF THE TOP PROFESSIONAL FUNDRAISERS FOR DEMOCRATS REP RICHARD LEHMAN IT MUST BE EXPLAINED SERVES UP PILES OF ASPARAGUS AND OTHER PRODUCE FROM HIS AGRICULTURAL CALIFORNIA DISTRICT AT HIS ANNUAL BASH HERE WITH INCREASING COMPETITION AMONG HUNDREDS OF LAWMAKERS FOR CAMPAIGN CASH AND A DOZEN OR MORE FUNDRAISERS HERE A WEEK IT HELPS TO HAVE A THEME THAT MAKES THE PARTY MEMORABLE AND PACKS IN THE PACS AND FOR THAT LAWMAKERS INCREASINGLY TURN TO PROS SUCH AS MR JOST OF FRAIOLI/JOST INC TO THROW THEIR PARTIES PAYING THEM 2500 OR MORE TO ARRANGE EVERYTHING FROM THE INVITATIONS TO THE THANKYOU CARDS THAT GO TO THE LOBBYISTS REPRESENTING POLITICALACTION COMMITTEES FOR LABOR BUSINESS AND OTHER SPECIAL INTERESTS IT'S A UNIQUELY WASHINGTON GROWTH INDUSTRY ON THE REPUBLICAN SIDE ONE TOP PACPARTY ORGANIZER IS NANCY BOCSKOR A FORMER CONGRESSIONAL AIDE TO THE DEPUTY HOUSE GOP LEADER REP NEWT GINGRICH OF GEORGIA BUT DESPITE HER POLITICAL CONNECTIONS PERHAPS NOTHING PREPARED HER MORE FOR HER CURRENT CAREER THAN THIS I WAS SOCIAL CHAIRMAN OF MY SORORITY IN COLLEGE SHE PROVIDES SHE SAYS SOUPTONUTS PLANNING FOR FUNDRAISERS RIGHT DOWN TO THE LEIS AND SQUIRT GUNS FOR REP JOHN BOEHNER'S POPULAR BEACH PARTY III NEXT WEEK SURF ATTIRE OPTIONAL SAYS THE OHIO REPUBLICAN'S INVITATION WHICH RAINS CONFETTI OF FUCHSIA FLAMINGOS AND GREEN PALM TREES INTO THE INVITEE'S LAP IT WOULD TAKE A LOT OF SUCH IMAGINATIVE EFFECTS AND THE PROMISED BEACH MUSIC TO EVOKE THE OCEANSIDE FROM THIS PARTY'S SITE THE HOMELY AMERICAN LEGION HALL TWO BLOCKS FROM THE CAPITOL BUT IF YOU'RE INTERESTED THE COVER CHARGE IS 350 A PAC 75 AN INDIVIDUAL A BARGAIN COMPARED WITH THE USUAL 500 TO 1000 THAT LAWMAKERS ASK AS RECENTLY AS THE MID1980S THE WORK FOR PAC PARTIES WAS DONE MOSTLY BY THE LAWMAKERS AND ESPECIALLY THEIR STAFFS THE TURN TO FUNDRAISING PROS IS PARTLY AN UNINTENDED CONSEQUENCE OF PAST REFORMS WHICH PROHIBITED USE OF CONGRESSIONAL OFFICES OR STAFF FOR FUND RAISING STAFF CAN VOLUNTEER THEIR OWN TIME BUT MOST LAWMAKERS WANT TO DUCK ANY SUSPICION OF LEGAL LAPSES YOU NEED TO GET IT OUT OF YOUR OFFICE NOW SAYS REP SONNY MONTGOMERY A MISSISSIPPI DEMOCRAT WHO HAS HIRED DEMOCRATIC PRO STEVEN PEDERSON FOR A CAPITAL FUNDRAISER IN MAY MR MONTGOMERY'S FIRST SINCE ENTERING CONGRESS IN 1967 IT USED TO BE THE RULES WEREN'T ENFORCED THE USE OF CONSULTANTS ALSO REFLECTS LAWMAKERS' AGGRESSIVENESS IN THE MONEY CHASE AS BOTH THE COST OF CAMPAIGNS AND THE NUMBER OF VULNERABLE INCUMBENTS HAS MULTIPLIED LESS THAN A DECADE AGO A TYPICAL LAWMAKER CONCENTRATED ON RAISING MONEY BACK HOME AND HAD JUST ONE WASHINGTON FUNDRAISER OVER CONGRESS'S TWOYEAR SESSION NOW A MEMBER OF CONGRESS OFTEN HAS TWO BIG PARTIES A YEAR HERE WITH HUNDREDS OF LOBBYISTS INVITED MOST OF THEM ALSO HAVE SMALLER EVENTS SUCH AS THE SEPARATE PRIVATE DINNERS THAT REP JOE BARTON A TEXAS REPUBLICAN PLANNED THIS SPRING WITH LOBBYISTS FOR THE SECURITIES AND AGRICULTURE INDUSTRIES AT 500 A PERSON IT'S A DEVELOPMENT THAT LEAVES MANY LOBBYISTS JUGGLING MULTIPLE INVITATIONS OVER THE THREE NIGHTS TUESDAY THROUGH THURSDAY THAT CONGRESS GENERALLY IS IN SESSION THE INVITATIONS COME FROM LAWMAKERS RANGING FROM THE MOST SENIOR TO THE FIRSTYEAR MEMBERS THEY HIT TOWN AND THEY BEGIN ASKING FOR MONEY SAYS STEVEN STOCKMEYER EXECUTIVE VICE PRESIDENT OF THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES WHILE MOST LOBBYISTS DON'T BLAME THE PROS FOR FUELING THE ESCALATION IN FUND RAISING AT LEAST ONE LAWMAKER DOES YOU ARE SUPPORTING AN INDUSTRY THAT FEEDS OFF THE SYSTEM PERPETUATING THE SYSTEM SAYS FRESHMAN REP BART STUPAK A MICHIGAN DEMOCRAT I CHOSE NOT TO DO IT AFTER THE FIRST TIME BUT MR PEDERSON THE PROFESSIONAL WHO HELPED REP STUPAK THAT ONE TIME SAYS I NOTICE HE ENDED UP AMONG THE TOP10 FRESHMEN IN PAC RECEIPTS LAST YEAR AND THAT DOESN'T JUST HAPPEN THE PROS BOAST ESPECIALLY OF THE WORK THEY DO BEFORE AND AFTER A PARTY THE PHONE CALLS FIRST TO BOOST TURNOUT AND THEN TO MAKE SURE THE CHECKS COME THROUGH YOUNG ASSISTANTS OFTEN PARTTIMERS OR TEMPORARY WORKERS HANDLE ROUTINE RSVPS AND UPDATE LISTS OF PAC CONTACTS THE PROS USUALLY CALL LOBBYISTS DIRECTLY IDEALLY THEY GET LAWMAKERS TO CALL THERE'S NO SUBSTITUTE FOR THE PERSONAL CONTACT ON THE PHONE SAYS MR JOST THAT'S OUR PHILOSOPHY THESE FUNDRAISERS SCOUR FEDERAL ELECTION COMMISSION RECORDS FOR POTENTIAL PAC CONTRIBUTORS REVIEWING THEIR CLIENTS' PAST RECORDS AND THOSE OF OTHER LAWMAKERS FROM THE SAME STATES OR CONGRESSIONAL COMMITTEES MS BOCSKOR SAYS THAT PROCESS MIGHT PRODUCE THIS SORT OF ADVICE FOR A CLIENT GEE FORD MOTOR CO GAVE YOU A CONTRIBUTION IN '92 WE HAVEN'T GOTTEN ANYTHING IN '94 THEN SHE ADDS I'LL GET THE PAC CONTACT AND A NUMBER AND HAVE THE LAWMAKER MAKE THE CALL THEN THERE ARE THOSE OTHER DETAILS SUCH AS INVITATIONS AND FOOD MS BOCSKOR'S SIGNATURE TOUCH IS THE CONFETTI IN HER INVITATIONS I HATE THAT MR STOCKMEYER GRIPES JUST THE OTHER DAY I OPENED ONE AND STARS FELL ALL OVER THE FLOOR AND THE COUCH THEY'RE STILL THERE BUT MS BOCSKOR SAYS THAT THE ONE TIME A CLIENT OPTED FOR A STANDARD WEDDINGSTYLE INVITATION INSTEAD OF HER MORE MEMORABLE KIND SHE WAS SWAMPED WITH INQUIRIES FROM INVITEES WHO HAD FORGOTTEN OR LOST THE ORIGINAL THE CONFETTI HAS COME IN THE SHAPE OF COWS FOR A FUNDRAISING BREAKFAST FOR OHIO REP DAVE HOBSON CATERED BY OHIO'S BOB EVANS FARM RESTAURANTS SHAMROCKS FOR NEW YORK REP JACK QUINN'S ST PATRICK'S DAY PARTY IN AN INVITATION FEATURING A LEPRECHAUN AND POT OF GOLD AND FISH FOR FLORIDA REP BILL MCCOLLUM'S SEAFOOD FESTIVAL AS THE INVITATIONS SUGGEST HOMESTATE FOOD IS A POPULAR GIMMICK AT LEAST THE PAC REPRESENTATIVES KNOW THEY WON'T HAVE TO EAT THE SAME STALE MUSHROOM CAPS AND MEATBALLS EVERY NIGHT SAYS DAN MORGAN A FUNDRAISER FOR HOUSE REPUBLICANS HE HAS HELPED SHIP IN WILD GAME FOR A MINNESOTA LAWMAKER AND LOBSTER FOR A NEW ENGLANDER MS BOCSKOR SAYS FLATLY I WOULD NEVER HAVE QUICHE SOMETHING BORING LIKE THAT INSTEAD YOU HAVE GOP REP OLYMPIA SNOWE'S MAINE CLAMBAKE FLORIDA REPUBLICAN REP ILEANA ROSLEHTINEN'S PAELLA ON THE BEACH AND WISCONSIN GOP REP THOMAS PETRI'S GERMAN BRATWURST FRY WISCONSIN STYLE JUST 500 A PAC ONE OF THE MOST POPULAR EVENTS IS NEW YORK DEMOCRATIC REP GARY ACKERMAN'S ANNUAL PARTY CATERED BY BEN'S BEST DELI IN QUEENS PUT YOURSELF IN THE PLACE OF THE JADED LOBBYIST SUGGESTS MR JOST I MIGHT HANG AROUND A LITTLE LONGER AT AN EVENT THAT HAS A FUN ATMOSPHERE THE LOBBYISTS HOWEVER ARE UNDERWHELMED STEPHEN DRIESLER OF THE NATIONAL ASSOCIATION OF REALTORS WITH THE NATION'S LARGEST PAC MEETS WEEKLY WITH COLLEAGUES TO SIFT THROUGH INVITATIONS I DON'T THINK WE MAKE ANY DECISIONS TO GO BASED ON THE FOOD THAT'S SERVED HE SAYS AND FAR FROM BEING ENTICED MR STOCKMEYER SAYS COLLEAGUES SHOULD JUST SAY NO MORE OFTEN WHEN THAT'S NOT POSSIBLE HE'S GOT ANOTHER IDEA ONE WITH ALL THE MAKINGS OF YET ANOTHER WASHINGTON GROWTH INDUSTRY HIRE A PROFESSIONAL FUNDRAISER GOER 9404210092 940421 LETTERS TO THE EDITOR AN OLD FOGEY NOT ON THIS COURT MY BOOK THE MISUNDERSTOOD ECONOMY WHAT COUNTS AND HOW TO COUNT IT MUST HAVE STRUCK A RAW NERVE IN YOUR REVIEWER SUSAN LEE A RANDOM STROLL DOWN MEMORY LANE LEISURE & ARTS APRIL 8 I'LL PASS OVER MS LEE'S AD HOMINEM ATTACKS EISNER HAS A BAD CASE OF DENIAL AND IS THE WORST KIND OF OLD FOGEY AND TURN TO THE SUBSTANCE OF HER COMPLAINT THAT I REOPEN DEBATES THAT HAVE LONG BEEN SETTLED MS LEE PAYS BRIEF TRIBUTE TO MY DISCUSSION OF FEDERAL ACCOUNTING AND NEEDS TO IMPROVE IT THAT DEBATE IS CERTAINLY CONTINUING INDEED EXPANDING MICHAEL BOSKIN PRESIDENT BUSH'S CHAIRMAN OF THE COUNCIL OF ECONOMIC ADVISERS WRITES ROBERT EISNER PROVOCATIVELY EXPOSES HOW MISLEADING INACCURATE OR INCOMPLETE ARE MUCH OF THE ECONOMIC DATA USED TO DESCRIBE THE ECONOMY AND TO PRESCRIBE POLICY NOR IS THE DEBATE OVER ON MY CHALLENGE TO THE CONVENTIONAL WISDOM ON BUDGET DEFICITS ROBERT BARTLEY EDITOR OF THE JOURNAL HAS DISCUSSED MY ARGUMENTS FAVORABLY IN YOUR COLUMNS AND IN HIS MOST RECENT BOOK MANY INCLUDING MONETARISTS AND SUPPORTERS OF THE VIEWS OF HARVARD'S ROBERT BARRO ONE OF YOUR REGULAR CONTRIBUTORS ALSO CHALLENGE THAT WISDOM ARGUING THAT DEFICITS DO NOT MATTER MY OWN ANALYSIS SUPPORTED BY MOST ECONOMISTS INDICATES THAT DEFICITS APPLIED AT THE RIGHT TIME CAN BE AN EFFECTIVE STIMULUS TO THE ECONOMY YOUR REVIEWER RIDICULES MY ARGUMENTS THAT MODERATE INFLATION IS NOT DANGEROUS AND THAT WE SHOULD NOT BE FRIGHTENED BY THE BUGABOO OF INFLATION BUT MOST ECONOMIST ARE AGREED THAT THE COSTS OF MODERATE INFLATION ARE MINIMAL AND MOST PEOPLE IN THE BUSINESS WORLD MUST FEEL SOME QUALMS ABOUT ALAN GREENSPAN'S PEREMPTORY STRIKE AGAINST AN INFLATION THAT HE ALONE SEES UNDER THE BED A STRIKE THAT HAS SHOCKED BOND STOCK AND HOUSING MARKETS AND MAY WELL CURB ECONOMIC RECOVERY MS LEE IN DISCUSSING MY TREATMENT OF SOCIAL SECURITY MYTHS AND HELPING BABY AND GRANDMA ACCUSES ME OF LACK OF CONCERN THAT FOR EVERY 1 SPENT ON CHILDREN 14 GOES TO SENIORS HER MISTAKEN FIGURES NOT MINE BUT THEN SHE OBJECTS TO MY ADVOCACY OF MORE MONEY FOR PRENATAL CARE CHILD CARE EDUCATION JOB TRAINING AND OF COURSE THE ENVIRONMENT IN WHICH OUR CHILDREN WILL LIVE IF SUCH EXPENDITURES ARE TO BE FINANCED BY DEBT BUSINESSES AND HOUSEHOLDS BORROW ALL THE TIME TO FINANCE INVESTMENT BUT MS LEE'S GREATEST QUARREL IS WITH MY CHARGE THAT THE DOCTRINE OF A NATURAL RATE OF UNEMPLOYMENT EMBODIES THE GREATEST MISCONCEPTION OF ALL THERE IS NOTHING NATURAL ABOUT 65 UNEMPLOYMENT IN THE US AND UNEMPLOYMENT HAS ON A NUMBER OF OCCASIONS MOST RECENTLY 198890 BEEN BELOW MOST BELIEVERS' NATURAL RATES WITH NO EVIDENCE OF ACCELERATING INFLATION IF GOD THOUGHT A CERTAIN AMOUNT OF UNEMPLOYMENT NATURAL HE STRANGELY TREATED HIS VARIOUS CHILDREN DIFFERENTLY JAPAN HAS AN UNEMPLOYMENT RATE OF 3 AND VIRTUALLY NO INFLATION WESTERN EUROPE HAS STAGNATED WITH DOUBLEDIGIT UNEMPLOYMENT AND NO EVIDENCE OF THE ACCELERATING DEFLATION CALLED FOR BY THE NATURALRATE DOGMA INDEED NEW CHALLENGES TO BASIC ASSUMPTIONS ABOUT THE NATURAL RATE HAVE BEEN SPARKING AN EVER WIDER DEBATE LAWRENCE SUMMERS AND OLIVIER BLANCHARD NO OLD FOGIES HAVE SET FORTH THE CONCEPT OF HYSTERESIS ACCORDING TO WHICH HIGH RATES OF UNEMPLOYMENT WHICH MAY BE BROUGHT ON BY MISGUIDED ANTIINFLATIONARY ACTIONS MAY PROVE SELFSUSTAINING AND OTHER ECONOMISTS CITED IN MY BOOK HAVE RECENTLY IN FUNDAMENTAL THEORETICAL ARTICLES CHALLENGED THE BASIS NOTION OF ANY UNIQUE NATURAL RATE OF UNEMPLOYMENT THE DOGMA OF THE NATURAL RATE IN FACT GOES BACK A LONG WAY TO KARL MARX WHO INSISTED THAT A RESERVE ARMY OF THE UNEMPLOYED WAS ESSENTIAL TO KEEPING WAGES FROM RISING AND EATING AWAY PROFITS AND THUS ESSENTIAL TO THE SURVIVAL OF CAPITALISM AS FOR THAT OLD FOGEY CHARGE THE WORST KIND NO LESS I CHALLENGE MS LEE TO A SET OF TENNIS OR INVITE READERS OF MY BOOK TO DECIDE FOR THEMSELVES 9404210091 940421 AMR LOSS NARROWED IN FIRST QUARTER USAIR DEFICIT WIDENED SUBSTANTIALLY BY MARJORIE NEEDHAM AND MICHAEL J MCCARTHY STAFF REPORTERS OF THE WALL STREET JOURNAL SEVERE WINTER WEATHER COMBINED WITH CONTINUING FARE DISCOUNTS TO PUT THE CHILL ON FIRSTQUARTER AIRLINE EARNINGS AMR CORP PARENT OF AMERICAN AIRLINES AND USAIR GROUP INC BOTH POSTED LOSSES AMR'S DEFICIT NARROWED TO 7 MILLION OR 30 CENTS A SHARE ON REVENUE OF 38 BILLION USAIR'S WIDENED CONSIDERABLY TO 1967 MILLION OR 364 A SHARE ON REVENUE OF 169 BILLION FOR THE 1993 QUARTER USAIR REPORTED A LOSS OF 1048 MILLION OR 257 A SHARE INCLUDING A ONETIME ACCOUNTING CHARGE AMOUNTING TO 92 CENTS A SHARE REVENUE WAS 172 BILLION AT AMR LAST YEAR'S FIRSTQUARTER LOSS WAS 22 MILLION OR 43 CENTS A SHARE ON REVENUE OF 381 BILLION WHILE THE WEATHER MAY HAVE IMPROVED IN THE SECOND QUARTER AMERICAN'S CHIEF FINANCIAL OFFICER MICHAEL J DURHAM EXPECTS A VERY VOLATILE FARE ENVIRONMENT TO CONTINUE TO AFFECT EARNINGS MR DURHAM SAID WE ANTICIPATE BEING PROFITABLE FOR 1994 WE DON'T ANTICIPATE BEING ADEQUATELY PROFITABLE GIVEN THE LEVEL OF INVESTMENT WE HAVE IN AIRCRAFT AND FACILITIES AMR ATTRIBUTES ITS IMPROVEMENT TO A CONTINUING PROGRAM TO CUT COSTS AND FOCUS ON THE GROWTH OF ITS NONAIRLINE BUSINESSES IN A STATEMENT ROBERT L CRANDALL AMR'S CHAIRMAN CALLED THE MODEST FIRSTQUARTER IMPROVEMENT UNSATISFACTORY BUT ADDED THAT THE COMPANY WAS ENCOURAGED BY THE RESULTS OF ITS TRANSITION PLAN WHILE REVENUE REMAINED ABOUT THE SAME OPERATING EXPENSES DECREASED 13 TO 365 BILLION FROM 37 BILLION A YEAR AGO AND OPERATING PROFIT ROSE 37 TO 159 MILLION FROM 116 MILLION THE COMPANY'S OTHER EXPENSES MOSTLY INTEREST OBLIGATIONS WIPED OUT PROFIT REVENUE FOR THE AIR TRANSPORTATION GROUP WHICH INCLUDES AMERICAN AIRLINES AND THE AMR EAGLE REGIONAL CARRIER FELL 22 TO 35 BILLION FROM 358 BILLION A YEAR AGO BUT IT CUT OPERATING EXPENSES 26 AND ITS OPERATING PROFIT WAS UP 44 TO 46 MILLION FROM 32 MILLION A YEAR AGO MR DURHAM SAID THE GROUP'S OPERATING PROFIT IMPROVED BECAUSE FUEL COSTS WERE DOWN ABOUT 96 FROM LAST YEAR'S FIRST QUARTER AND BECAUSE THE COMPANY HAS RETIRED SOME OF ITS OLDER AIRPLANES WHICH ARE MORE COSTLY TO OPERATE AMR'S SABRE GROUP WHICH INCLUDES ITS INFORMATION TECHNOLOGY BUSINESSES SAW INCOME INCREASE 17 TO 386 MILLION FROM 330 MILION WHILE SABRE'S OPERATING EXPENSES ROSE 11 TO 283 MILLION FROM 255 MILLION ITS OPERATING PROFIT JUMPED 37 TO 103 MILLION FROM 73 MILLION AMR'S MANAGEMENT SERVICES GROUP'S REVENUE ROSE 25 TO 131 MILLION FROM 105 MILLION A YEAR AGO OPERATING EXPENSES INCREASED 25 TO 121 MILLION FROM 96 MILLION LAST YEAR AND OPERATING PROFIT ROSE 11 TO 10 MILLION FROM 9 MILLION A YEAR AGO USAIR UNDER ATTACK IN MANY NORTHEASTERN MARKETS BY LOWERCOST AIRLINES LASHED BACK IN FEBRUARY BY CUTTING UNRESTRICTED FARES AS MUCH AS 70 IN MANY CITIES BECAUSE USAIR LAUNCHED THE PROGRAM WITHOUT SIMULTANEOUSLY LOWERING ITS HIGHCOST STRUCTURE NEARLY 150 MILLION OF ITS FIRSTQUARTER LOSS WAS ATTRIBUTABLE TO THE TICKET DISCOUNTS CHEAPER TICKETS LURED 10 MORE PASSENGERS IN THE LATEST QUARTER BUT THE AIRLINE'S YIELD OR REVENUE PER SEAT FELL 92 IN THE PROCESS AND USAIR'S ALREADY HIGH COSTS ROSE 53 IN THE QUARTER TO 1189 CENTS A SEAT MILE SINCE LAST MONTH USAIR HAS BEEN TRYING TO PERSUADE ITS UNIONS TO AGREE TO BIG WAGE AND WORKRULE CONCESSIONS AS PART OF A PLAN TO SLASH ANNUAL OPERATING COSTS BY AS MUCH AS 9 OR ROUGHLY 608 MILLION WHILE NOT OFFERING AN OFFICIAL RESPONSE YET THE UNIONS HAVE REACTED COOLLY TO THE REQUEST THE REMAINING 50 MILLION OF THE FIRSTQUARTER LOSS RELATED TO BRUTAL WINTER WEATHER PARTICULARLY ALONG THE EAST COAST STORMS PRODUCED COSTLY FLIGHT DELAYS AND CANCELLATIONS AND RAN UP EXPENSES FOR EVERYTHING FROM DEICING PLANES TO PUTTING UP STRANDED PASSENGERS IN HOTELS A USAIR SPOKESMAN SAID THERE IS NO CHANGE IN THE COMPANY'S PREVIOUS FORECAST THAT 1994'S LOSS WILL EXCEED THE 350 MILLION DEFICIT OF 1993 SEPARATELY USAIR SAID IT WILL BE CANCELING A 300 MILLION BANK CREDIT AGREEMENT UNDER WHICH IT HAS HAD NO BORROWINGS SINCE THE MIDDLE OF 1993 USAIR HAD EARLIER SAID IT WAS SEEKING WAIVERS TO CERTAIN COVENANTS OF THAT CREDIT LINE BUT USAIR SAID IT WASN'T ABLE TO OBTAIN THE WAIVERS AND HADN'T ANY CURRENT BORROWING PLANS FOR THE LINE ANYWAY AS A RESULT 66 JET AND COMMUTER AIRCRAFT WILL NO LONGER BE TIED UP AS COLLATERAL UNDER THE CREDIT LINE FREEING USAIR TO SELL AND LEASE BACK THE PLANES SHOULD IT DECIDE TO DO SO IN NEW YORK STOCK EXCHANGE TRADING USAIR SHARES WERE UNCHANGED AT 625 WHILE AMR SHARES ROSE 125 TO 5475 9404210090 940421 ACCOUNTING DELOITTE PUSHED FOR ANONYMITY IN LOBBY EFFORT BY RICHARD B SCHMITT AND AMY STEVENS STAFF REPORTERS OF THE WALL STREET JOURNAL WHEN US SEN RICHARD H BRYAN RECEIVED A FLURRY OF MAIL FROM CONSTITUENTS SUPPORTING A BILL FAVORABLE TO ACCOUNTANTS HIS STAFF WAS SURPRISED THAT NEVADANS CARED SO DEEPLY ABOUT THE ISSUE WHAT HIS STAFF DIDN'T KNOW WAS THAT DELOITTE & TOUCHE THE NATION'S THIRDLARGEST ACCOUNTING FIRM WITH ABOUT 1400 PARTNERS HAD LAUNCHED AN EXTRAORDINARY CAMPAIGN TO URGE PARTNERS TO WRITE LETTERS OF SUPPORT TO THEIR SENATORS SPECIFICALLY WITHOUT IDENTIFYING THEMSELVES AS ACCOUNTANTS DELOITTE'S MISSIVE HIGHLIGHTS HOW LOBBYISTS AND PROFESSIONAL GROUPS ARE STRIVING FOR A NEW LEVEL OF SOPHISTICATION AND SOME SAY DECEPTION IN HOW THEY DO BUSINESS IN WASHINGTON IN RECENT YEARS IT'S BECOME INCREASINGLY COMMON FOR COMPANIES AND INTEREST GROUPS TO GENERATE MASSMAIL CAMPAIGNS EITHER ON THEIR OWN OR BY HIRING A LOBBYING FIRM TO ASSIST THEM BUT RARELY IS THERE SUCH AN EXPLICIT EFFORT TO URGE LETTERWRITERS TO HIDE THEIR IDENTITY SAY POLITICAL CONSULTANTS AND LOBBYING EXPERTS THE SPIRIT OF DELOITTE'S CAMPAIGN WAS SUMMED UP IN THE INTERNAL MEMO IT SENT PARTNERS THIS MONTH YOU ARE BEING ASKED TO WRITE A LETTER NOW USING YOUR HOME ADDRESS WITH NO INDICATION OF YOUR FIRM AFFILIATION TO YOUR SENATORS THE MEMO STATED PARTNERS WERE URGED TO PERSONALIZE THEIR CORRESPONDENCE HANDWRITTEN LETTERS ARE ENCOURAGED AND TO GET SPOUSES FRIENDS AND BUSINESS ASSOCIATES TO JOIN IN THE LEGISLATION WAS DESCRIBED IN DETAIL TO FACILITATE INTELLIGENT LETTERWRITING THE MEMO CONCLUDED OUR JOB IS TO OVERWHELM THEM WITH AN OUTPOURING OF CONSTITUENT REQUESTS HENCE THE USE OF YOUR RESIDENCE ADDRESS TO SUPPORT THIS IMPORTANT BILL THE MEMO SAID PARTNERS FROM ALL BIG SIX FIRMS WERE BEING ASKED TO WRITE LETTERS IN SUPPORT OF THE LEGISLATION THIS IS A WINDOW INTO HOW TO ORCHESTRATE A CAMPAIGN THAT DOES NOT LOOK LIKE A CAMPAIGN SAYS CHARLES LEWIS EXECUTIVE DIRECTOR OF THE CENTER FOR PUBLIC INTEGRITY A NONPROFIT WATCHDOG GROUP IN WASHINGTON HOWEVER SOME QUESTION THE EFFECTIVENESS OF SUCH AN EFFORT THIS SEEMS HAMHANDED AND A LITTLE BIT CRUDE SAYS JAMES A THURBER DIRECTOR OF AMERICAN UNIVERSITY'S CENTER FOR CONGRESSIONAL AND PRESIDENTIAL STUDIES I THINK THE DECEPTION IS FOOLISH AND WRONG THE LEGISLATION THAT INSPIRED THE CAMPAIGN DEALS WITH ALLEGEDLY SPECIOUS LAWSUITS INTRODUCED IN THE SENATE IN LATE MARCH IT WOULD LIMIT PRIVATE SUITS ALLEGING FEDERAL SECURITIESLAWS' VIOLATIONS AND HAS BEEN STRONGLY ENDORSED BY HIGHTECH COMPANIES WHICH HAVE BEEN FREQUENT TARGETS OF SUCH SUITS AND ACCOUNTANTS PLAINTIFFS' LAWYERS HAVE BEEN LOBBYING HARD AGAINST THE LEGISLATION ENLISTING SUCH CONSUMERORIENTED ALLIES AS THE AMERICAN ASSOCIATION OF RETIRED PERSONS AMONG ITS PROVISIONS THE BILL WOULD REQUIRE LEAD PLAINTIFFS IN SUCH SUITS TO OWN A CERTAIN AMOUNT OF STOCK BEFORE BEING ALLOWED TO SUE AND IMPOSE LIMITS ON ATTORNEYS' FEES IN SUCH CASES A US SUPREME COURT RULING ON TUESDAY EFFECTIVELY ACHIEVED ANOTHER PROVISION LIMITING THE EXPOSURE OF ACCOUNTANTS AND OTHERS IN CASES WHERE THEY ARE FOUND NOT TO HAVE DIRECTLY PARTICIPATED IN A FRAUD A LEGISLATIVE EFFORT TO BYPASS THE RULING IS EXPECTED DELOITTE FOR ONE VIGOROUSLY DEFENDS ITS LETTERWRITING AND THE AVOIDANCE OF USING THE FIRM'S NAME JUST BECAUSE I AM AN ACCOUNTANT DOES NOT MEAN I AM NOT A PRIVATE CITIZEN AND HAVE MY OWN VIEWS ABOUT ANY NUMBER OF PIECES OF LEGISLATION SAYS WILLIAM EZZELL A PARTNER IN THE FIRM'S WASHINGTON OFFICE WHO HAS BEEN HELPING TO COORDINATE THE INDUSTRY'S LOBBYING I THINK THAT IS QUITE NORMAL WHILE THE INTERNAL MEMO WAS WRITTEN BY A PARTNER IN NEW JERSEY MR EZZELL SAYS THE FIRM HAS BEEN ASKING PARTNERS NATIONWIDE TO GET INVOLVED HE SAYS THEY ARE BEING ASKED TO USE PERSONAL STATIONERY BECAUSE IT REINFORCES THE MESSAGE AND ALSO AVOIDS CONFUSION IN CASES WHERE PARTNERS WORK IN ONE STATE BUT LIVE IN ANOTHER ORGANIZED LETTERWRITING CAMPAIGNS ARE OFTEN DERIDED AS ASTROTURF BECAUSE UNLIKE NATURAL GRASSROOTS MOVEMENTS THEY AREN'T A RESULT OF SPONTANEOUS POLITICAL FEELING WHATEVER THEIR EFFECTIVENESS THOUGH THEY DON'T VIOLATE ANY LAWS THERE ARE NO LEGAL LIMITS ON THE SOLICITATION OF POLITICAL MAIL NOR REQUIREMENTS THAT AUTHORS IDENTIFY THEIR CONNECTION TO A CAUSE INDEED ANY SUCH RULES WOULD MOST CERTAINLY RUN AFOUL OF FIRST AMENDMENT GUARANTEES OF FREE SPEECH AND THE FREEDOM TO PETITION GOVERNMENT STILL POLITICAL CONSULTANTS AND LOBBYING EXPERTS SAY IT'S POINTLESS TO TRY TO MASK WHAT'S GOING ON MEMBERS OF CONGRESS AND THEIR STAFFS USUALLY RECOGNIZE A CANNED LETTERWRITING CAMPAIGN FOR WHAT IT IS THESE EXPERTS SAY MR THURBER SAYS DELOITTE'S EFFORT TO CONCEAL ITSELF IS LIKELY TO BACKFIRE IT LOOKS LIKE AN ORCHESTRATED COVERUP AND MEMBERS OF CONGRESS AND THEIR STAFF JUST DON'T LIKE THAT WHETHER THE ACCOUNTANTS' LETTERWRITING IS HAVING AN IMPACT IS UNCLEAR MARK GITENSTEIN A WASHINGTON LAWYER AND LOBBYIST WHO REPRESENTS THE ACCOUNTANTS SAYS NO ONE IS BEING FOOLED CAPITOL HILL STAFF HE HAS TALKED WITH ABOUT THE LEGISLATION SAY GEE WE ARE GETTING A LOT OF LETTERS FROM THE ACCOUNTANTS HE SAYS ANDY VERMILYE LEGISLATIVE DIRECTOR FOR NEVADA SEN BRYAN SAYS HIS BOSS HASN'T MADE UP HIS MIND ON THE BILL ALTHOUGH HE IS TROUBLED AT THE THOUGHT OF LIMITING THE RIGHTS OF INVESTORS WHO MAY HAVE BEEN DEFRAUDED MR VERMILYE SAYS THE SENATOR HAS RECEIVED A DOZEN LETTERS IN THE LAST FEW DAYS WHICH IS PRETTY HIGH VOLUME CONSIDERING THE ISSUE THE STAFFER SAYS HE DOESN'T KNOW FOR SURE WHO WROTE THE LETTERS ALTHOUGH HE HAS HIS SUSPICIONS I THINK IT WOULD NOT HAVE TAKEN A ROCKET SCIENTIST FOR US TO FIGURE OUT THIS WAS AN ORCHESTRATED EFFORT BY A GROUP SUPPORTING THE BILL HE SAYS WE WOULD HAVE SUSPECTED ALL THESE PEOPLE WORK FOR THE ACCOUNTING INDUSTRY BUT CLEARLY NOWHERE IN THE LETTER DOES IT INDICATE THAT 9404210089 940421 FIRMS FORFEIT TAX BREAK TO PAY TOP BRASS 1 MILLIONPLUS BY JOANN S LUBLIN STAFF REPORTER OF THE WALL STREET JOURNAL MANY BIG BUSINESSES HAVE DECIDED TO DO THE UNTHINKABLE FORGO A TAX BREAK SO THEY CAN PAY THEIR EXECUTIVES AS MUCH AS THEY WANT HOWEVER THEY WANT THE BREAK STEMS FROM THE NEW TAX LAW THAT TOOK EFFECT JAN 1 AND THAT GENERALLY BARS PUBLICLY HELD CORPORATIONS FROM DEDUCTING A TOP OFFICER'S COMPENSATION IN EXCESS OF 1 MILLION A YEAR UNDER REGULATIONS DRAFTED BY THE INTERNAL REVENUE SERVICE THAT EXCESS WOULD BE DEDUCTIBLE IF THE EXECUTIVE'S PAY IS BASED ON OBJECTIVE PERFORMANCE GOALS DRAFTED BY INDEPENDENT DIRECTORS AND CLEARED AT THE COMPANY'S ANNUAL MEETING BUT RATHER THAN SEEK SHAREHOLDERS' BLESSING FOR A CERTAIN PAY PLAN OR HOLD SENIOREXECUTIVE PAY AT 1 MILLION ABOUT A THIRD OF 91 BIG COMPANIES WILL PAY WHAT THEY WANT AND DO WITHOUT THE DEDUCTION CONCLUDES AN ANALYSIS OF 1994 PROXY STATEMENTS BY CONSULTANTS PEARL MEYER & PARTNERS INC THE NUMBER IS MANY MORE THAN WE ANTICIPATED SAYS RHODA EDELMAN A PARTNER AT THE NEW YORK FIRM IT IS CORPORATE AMERICA'S WAY OF FIGHTING BACK AT GOVERNMENT REGULATION THEY WANT THE FREEDOM TO RUN THEIR BUSINESSES BEFORE THE NEW TAX LAW COMPANIES COULD DEDUCT EXORBITANT EXECUTIVE PAY WITHOUT CONSULTING ANYONE SOME COMPANIES ARE GETTING AROUND THE MILLIONDOLLAR DEDUCTION CAP BY HAVING EXECUTIVES DEFER SOME PAY UNTIL THEY RETIRE BUT OTHERS WILL FORFEIT THE DEDUCTION USUALLY BECAUSE THEY OPPOSE GIVING OUTSIDERS A GREATER VOICE IN EXECUTIVEPAY DECISIONS AMONG THEM EASTMAN KODAK CO SCHLUMBERGER LTD GILLETTE CO MOTOROLA INC FIRST CHICAGO CORP MARTIN MARIETTA CORP AND KELLOGG CO AT KELLOGG ARNOLD G LANGBO CHAIRMAN AND CHIEF EXECUTIVE OFFICER WAS PAID A SALARY AND BONUS OF ABOUT 13 MILLION IN 1993 A SPOKESMAN FOR THE BATTLE CREEK MICH CEREAL MAKER DECLINES TO DISCUSS THE DECISION OF THE KELLOGG BOARD'S COMPENSATION COMMITTEE NOT TO ALTER THE COMPANY'S PAY PLANS TO GET THE DEDUCTION GILLETTE DIRECTORS HOWEVER MAKE IT PERFECTLY CLEAR WHY THEY ARE RELINQUISHING THE EXECUTIVEPAY DEDUCTION THEY WANT TO PRESERVE THEIR INDEPENDENT BUSINESS JUDGMENT CHANGING THE BOSTON COMPANY'S ANNUAL BONUS PLAN WOULD SERIOUSLY IMPEDE THE COMPENSATION COMMITTEE'S ABILITY TO ADMINISTER THE PLAN THE PANEL SAYS IN ITS PROXYSTATEMENT REPORT UNDER REGULATIONS DRAFTED BY THE IRS AN EXECUTIVE'S ANNUAL BONUS WOULD BE EXEMPT FROM THE MILLIONDOLLAR DEDUCTION CAP IF IT DEPENDS ON MEETING OBJECTIVE PERFORMANCE TESTS APPROVED BY STOCKHOLDERS THE GILLETTE BONUS PLAN WAS DELIBERATELY DESIGNED SO THAT INDIVIDUAL AWARDS WERE NOT TO BE DEPENDENT SOLELY ON OBJECTIVE OR NUMERICAL CRITERIA THE PROXY NOTES BY DECIDING TO DO WITHOUT THE TAX BREAK GILLETTE'S BOARD ACTED IN THE BEST INTERESTS OF SHAREHOLDERS SAYS JOHN MCGOWAN A GILLETTE VICE PRESIDENT BUT LET'S FACE IT THE AMOUNT OF THE DEDUCTION LOST ISN'T SIGNIFICANT ALFRED M ZEIEN GILLETTE'S CHAIRMAN AND CEO MADE ABOUT 16 MILLION IN SALARY AND BONUS LAST YEAR MR MCGOWAN ESTIMATES THAT FORSAKING THE DEDUCTION ON THE PORTION OVER 1 MILLION WILL COST THE COMPANY ABOUT 233000 THIS YEAR A TINY ADDITION TO THE 887 MILLION IT PAID THE FEDERAL GOVERNMENT IN 1993 INDEED FOR MOST CORPORATE GIANTS THE DEDUCTION IS PEANUTS THE MINIMAL SUMS INVOLVED FAR OUTWEIGH THE NEED FOR DIRECTORS TO USE THEIR DISCRETION SEVERAL MAJOR COMPANIES CONTEND IN THEIR PROXIES XEROX CORP PROBABLY WILL LOSE LESS THAN 150000 BY GIVING UP THE TAX BREAK IN 1994 SAYS LARRY ROBINSON DIRECTOR OF CORPORATE COMPENSATION AT THE STAMFORD CONN CONCERN ON THE OTHER HAND HE POINTS OUT A RIGID BONUS FORMULA CAN HAMSTRING HOW YOU PAY YOUR EXECUTIVES IN A RAPIDLY CHANGING GLOBAL MARKET STILL IGNORING PRESIDENT CLINTON'S EFFORT TO RESTRAIN EXCESSIVE EXECUTIVE PAY A HOPEDFOR RESULT OF THE NEW TAX LAW COULD HURT BUSINESSES' PUBLIC RELATIONS MORE THAN THEIR TAX BILLS AT POORLY PERFORMING COMPANIES THE FORGONE TAX BREAK IS GOING TO BE ANOTHER THING THAT INVESTORS WILL THROW OUT AT MANAGEMENT SUGGESTS SAMUEL BERGER A PRINCIPAL OF ACCOUNTANTS PRICE WATERHOUSE IN NEW YORK SOME OBSERVERS BELIEVE THAT COULD HAPPEN AT KODAK THE PHOTOGRAPHY AND HEALTHCARE COMPANY BURDENED BY INCREASED COMPETITION AND SLOWER GROWTH IN ITS CORE FILM BUSINESS A GENEROUS PAY PACKAGE HELPED PERSUADE GEORGE M FISCHER TO QUIT THE NO 1 JOB AT MOTOROLA AND TAKE KODAK'S HELM IN DECEMBER BESIDES A 5 MILLION SIGNON BONUS A RESTRICTED STOCK GRANT WORTH 13 MILLION AND OPTIONS TO BUY 13 MILLION SHARES MR FISCHER GETS A 2 MILLION SALARY AND A GUARANTEED MINIMUM BONUS OF 1 MILLION THIS YEAR AND NEXT KODAK BASED IN ROCHESTER NY SAYS IT WILL GIVE UP THE DEDUCTION ON THE EXCESS PORTION OF MR FISCHER'S 1994 SALARY AT A COST OF BETWEEN 400000 AND 430000 THE EXECUTIVE'S GUARANTEED BONUS WON'T COUNT TOWARD THE MILLIONDOLLAR DEDUCTIBILITY LIMIT UNTIL 1995 WHEN HE ACTUALLY RECEIVES THIS YEAR'S AWARD KODAK DIRECTORS COULD HAVE SAVED THE DEDUCTION BY ASKING MR FISCHER TO DEFER SOME PAY UNTIL HE LEAVES FOLLOWING THE EXAMPLE RECENTLY SET BY THE HEADS OF WEYERHAUESER CO COASTAL CORP AND SEARS ROEBUCK & CO IT WAS NOT A ROUTE THAT THE COMPENSATION COMMITTEE WANTED TO TAKE THEY JUST DIDN'T FEEL IT WAS APPROPRIATE TO ASK HIM TO DO THAT RECALLS JERRY FRANCIS DIRECTOR OF EXECUTIVE COMPENSATION BUT SOME INSTITUTIONAL SHAREHOLDERS MAY REJECT KODAK'S EXPLANATION IT'S NOT A GOOD TIME IN KODAK'S CORPORATE LIFE CYCLE TO BE COCKY SAYS GARY LYONS A VICE PRESIDENT OF INSTITUTIONAL SHAREHOLDER SERVICES INC A PROXYADVISORY CONCERN IN BETHESDA MD KODAK REPORTED A 1993 LOSS OF 152 BILLION IN REVIEWING 1994 PROXY STATEMENTS MR LYONS SAYS HE HAS SO FAR IDENTIFIED 37 MAJOR CORPORATIONS THAT WILL DO WITHOUT THE DEDUCTION AND EMPLOY AT LEAST ONE SENIOR OFFICER WHOSE SALARY AND BONUS SURPASSED 1 MILLION IN 1993 THE DECISION HE SAYS COULD DRAW A SHAREHOLDERS' LAWSUIT AND MAKE A VERY POOR MOTIVATIONAL STATEMENT TO YOUR EMPLOYEES WORRIES ABOUT A DAMAGED CORPORATE IMAGE AS WELL AS THE EXPECTED ISSUANCE OF FINAL FEDERAL RULES MAY PROMPT CERTAIN HOLDOUTS TO REVERSE COURSE AND SEEK THE DEDUCTION IN 1995 FOR INSTANCE KODAK'S CURRENT POSITION WILL COST THE COMPANY BETWEEN 800000 AND 860000 IN TAX BREAKS NEXT YEAR WE COULD HAVE A DIFFERENT SCENARIO BY THEN MR FRANCIS PREDICTS XEROX WILL REEVALUATE ITS STANCE NEXT YEAR WHEN WE THINK THE REGULATIONS WILL BE MORE SPECIFIC SAYS MR ROBINSON OTHER CONCERNS ARE URGING THE IRS TO LOOSEN ITS PERFORMANCEGOAL REQUIREMENTS THE AGENCY HOLDS HEARINGS MAY 9 ON THE PROPOSED RULES WE ARE CLEARLY IN A POPULIST ERA WHERE TOSSING ASIDE AN EXECUTIVEPAY TAX BREAK IS A LOSER WARNS MICHAEL DAVIS HEAD OF THE US EXECUTIVECOMPENSATION PRACTICE FOR CONSULTANTS TOWERS PERRIN IN CHICAGO ONCE YOU SEE WHERE THE HERD IS GOING HE ADDS IT WILL BECOME AWFULLY HARD TO BUCK IT 9404210088 940421 MARKETSCAN GESUNDHEIT AS ALLERGY SEASON BLOOMS SNIFFLERS TAKE WHATEVER PROMISES RELIEF BY LAURA BIRD STAFF REPORTER OF THE WALL STREET JOURNAL LEAVES ARE BUDDING FLOWERS ARE BLOOMING AND MILLIONS OF HUMANS ARE SNEEZING IT'S ANOTHER DAY IN POLLEN LAND CROAKS MARSHA BILLS A DALLAS FREELANCE WRITER WHO IS HOARSE WITH ALLERGYINDUCED LARYNGITIS I'M TAKING ANYTHING I CAN GET MY HANDS ON AFTER AN ESPECIALLY BAD ALLERGY SEASON LAST YEAR SALES OF OVERTHECOUNTER ALLERGY REMEDIES WERE UP 7 TO 4937 MILLION IN SUPERMARKETS DRUGSTORES AND MASS MERCHANDISE OUTLETS DURING THE 52 WEEKS ENDING FEB 13 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE NOW HAYFEVER SUFFERERS ARE BRACING FOR ANOTHER SEVERE POLLEN SEASON THE RESULT OF LUSH PLANT GROWTH AFTER A WINTER OF HEAVY SNOW AND RAIN REPEATING THE HIGH SALES IN 1994 WON'T BE EASY THOUGH PEOPLE ACCUMULATE THESE PRODUCTS NOTES HEMANT K SHAH AN INDEPENDENT INDUSTRY ANALYST WITH HKS & ASSOCIATES IN WARREN NJ HE EXPECTS 1994 SALES IN THE CATEGORY TO BE FLAT ABOUT 35 MILLION AMERICANS SUFFER FROM RHINITIS THE ITCHING SNEEZING AND RUNNYNOSE CONDITION THAT RESULTS WHEN THE IMMUNE SYSTEM OVERREACTS TO POLLEN ACCORDING TO THE NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES THE NUMBER OF AFFLICTED IS THOUGHT TO BE INCREASING ALTHOUGH EXACT FIGURES AREN'T KNOWN BECAUSE MOST ALLERGY SUFFERERS DON'T SEEK MEDICAL TREATMENT RELYING INSTEAD ON OVERTHECOUNTER REMEDIES AND HERE'S THE OPPORTUNITY SOME MARKETERS SEE MOST MODERATETOHEAVY USERS OF OTC ALLERGY MEDICINES KEEP A STABLE OF TWO OR THREE BRANDS THAT THEY USE ON A ROTATIONAL BASIS SAYS PAMELA BYRNE ASSISTANT PRODUCT MANAGER FOR BENADRYL A PRODUCT MADE BY WARNERLAMBERT CO ACCORDING TO MS BYRNE 70 OF ALLERGY SUFFERERS USE SOME KIND OF MEDICATION OF THEM 53 RELY SOLELY ON OTC PRODUCTS AND 26 USE BOTH OTC AND PRESCRIPTION MEDICATIONS MARKETERS ARE THUS RUSHING TO RELIEVE EACH AND EVERY SYMPTOM WITH A HOST OF OTC BRANDS AND LINE EXTENSIONS BUT THE CROWD OF PRODUCTS AND CLAIMS HAS TURNED SHOPPING FOR ALLERGY RELIEF INTO A BEFUDDLING EXPERIENCE FOR CONSUMERS WHOSE WILLINGNESS TO EXPERIMENT WITH AN ARRAY OF PRODUCTS DOES MORE FOR SALES THAN FOR THEIR ALLERGY SYMPTOMS MOST OTC PRODUCTS CONTAIN ANTIHISTAMINES WHICH BLOCK HISTAMINE A NATURAL BODY CHEMICAL THAT TRIGGERS COLDLIKE SYMPTOMS HISTAMINE IS BELIEVED TO PLAY A ROLE IN FIGHTING PARASITES BUT SOME SCIENTISTS SPECULATE THAT HISTAMINE DIRECTS ITSELF TO POLLEN WHEN PARASITES AREN'T PRESENT MARKETERS OFTEN ADD PAIN RELIEVERS AND DECONGESTANTS TO FIGHT RELATED SYMPTOMS LIKE HEADACHES AND NASAL CONGESTION SOMETIMES THEY SKIP THE ANTIHISTAMINES ALTOGETHER AND PUSH COLD MEDICINES TO ALLERGY SUFFERS ALLERGY SUFFERERS ARE NOTORIOUSLY FICKLE WHEN THEY SHOP FOR RELIEF I JUST GRAB WHATEVER IS ON SALE MS BILLS SAYS NOTING THAT SHE HAS FIVE ALLERGYRELIEF PRODUCTS ON HAND ONE ANTIHISTAMINE THREE ANTIHISTAMINEDECONGESTANT COMBINATIONS AND ALLERGYRELIEF DROPS MOST USERS OF OTC REMEDIES ASSUME THAT ROTATING BRANDS WILL INCREASE THEIR EFFECTIVENESS PEOPLE THINK THAT IF THEY USE THE SAME ONE EVERY DAY THEY WILL BUILD UP A TOLERANCE AND IT WON'T WORK AS WELL MS BYRNE OF BENADRYL SAYS A WARNERLAMBERT SPOKESWOMAN ADDS HASTILY THAT THE COMPANY DOESN'T RECOMMEND THE ROTATION METHOD NEITHER DO ALLERGISTS PATIENTS WHO TAKE A DIFFERENT REMEDY FOR EACH SYMPTOM DON'T ALLOW ANY SINGLE ONE TO BUILD UP IN THE BLOODSTREAM AND WORK PEOPLE GIVE IN TO COMPANIES' MARKETING PUSH SAYS MICHAEL RUFF AN ALLERGIST AT THE UNIVERSITY OF TEXAS/SOUTHWESTERN MEDICAL SCHOOL IN DALLAS THEY GET FRUSTRATED AND DON'T GIVE THE DRUGS A GOOD CHANCE HE RECOMMENDS STARTING AN ANTIHISTAMINE BEFORE SYMPTOMS ARISE AND STICKING WITH IT FOR SEVERAL DAYS A SINGLEREMEDY REGIMEN ALSO ALLOWS SUFFERERS TO ASSESS SIDE EFFECTS BY POPPING A VARIETY OF PILLS DR RUFF SAYS ALLERGY SUFFERERS DON'T KNOW WHICH ONES THEY'LL TOLERATE DROWSINESS IS THE CHIEF SIDE EFFECT OF CONCERN TO CONSUMERS AND A PRINCIPAL FACTOR DRIVING SALES SANDOZ CORP FOR EXAMPLE DOESN'T MAKE A LESSSEDATING CLAIM FOR TAVIST1 AND TAVISTD THE OTC VERSIONS OF THE PRESCRIPTION BRAND TAVIST WHICH WAS PITCHED AS A LESSSEDATING ANTIHISTAMINE AS A RESULT MR SHAH SAYS TAVIST HASN'T DONE AS WELL AS ONE WOULD HAVE EXPECTED IN ITS FIRST YEAR OF OTC DISTRIBUTION SANDOZ HOWEVER TAKES ISSUE WITH MR SHAH'S ASSESSMENT SAYING HIS EXPECTATIONS FOR THE BRAND WEREN'T REALISTIC TAVIST1 IS PERFORMING JUST AS WELL OTC AS IT DID BEFORE THE CONVERSION SAYS MELANIE LOVER DIRECTOR OF PRODUCT MARKETING FOR TAVIST IN 1993 TAVIST1 RACKED UP 183 MILLION IN SALES TAVISTD CONTAINING AN ADDED DECONGESTANT HAD SALES OF 889 MILLION CONSUMERS' DREAD OF DROWSINESS IS OFTEN EXAGGERATED FUELED BY AD BLITZES FOR NONSEDATING PRESCRIPTION PRODUCTS EXPERTS SAY IT'S DRUMMED INTO THE PUBLIC PERCEPTION THAT ALL ANTIHISTAMINES CAUSE DROWSINESS NOTES GILLIAN SHEPHERD ASSOCIATE PROFESSOR OF CLINICAL MEDICINE AT NEW YORK HOSPITALCORNELL MEDICAL CENTER PEOPLE THINK I'M GOING TO BE DROWSY' AND THEREFORE THEY ARE OTHER DOCTORS SAY THAT BY STICKING WITH A SINGLE REMEDY FOR SEVERAL DAYS PATIENTS FIND THAT DROWSINESS USUALLY DISAPPEARS ANTIHISTAMINES COMBINED WITH DECONGESTANTS ARE POPULAR PARTLY BECAUSE DECONGESTANTS ACT AS STIMULANTS COUNTERING DROWSINESS FROM ANTIHISTAMINES AS A RESULT SEVERAL DECONGESTANTS THAT SOLD ALL WINTER AS COLD AND FLU REMEDIES ARE NOW FINDING A SECOND MARKET DURING ALLERGY SEASON ONE IS CIBAGEIGY CORP'S ROUNDTHECLOCK DECONGESTANT EFIDAC/24 CIBAGEIGY HAS PUT LA LAW ACTOR RICHARD DYSART BACK ON TELEVISION THIS SPRING AND SUMMER TO HAWK EFIDAC/24 TO ALLERGY SUFFERERS WE'RE SIMPLY FEATURING A DIFFERENT LINE ON THE BOX FOR THE SEASONAL CHANGE SAYS GERALD J CUTLER EFIDAC/24'S MARKETING DIRECTOR IN THE ALLERGY BUSINESS MR CUTLER SAYS NEW NEWS IS IMPORTANT PEOPLE ARE LOOKING FOR THE THING THAT SOMEHOW WILL GIVE THEM BETTER LONGER OR MORE RELIEF 9404210087 940421 PEPPERAND SALT SADDLE SHOES AND SODA JERKS FLOWER CHILDREN HIPPY DRESSES SHRINKS THAT ASKED IF WE WERE SANE YUPPIES WITH HIGH SALARIES TELLING US TO PAY MORE TAXES BE ALERT FOR THOSE ONCEINALIFETIME OPPORTUNITIES THROUGH THE MAILS THEY COME ALONG ONLY A COUPLE OF TIMES PER WEEK 9404210086 940421 POLITICS & POLICY DOMENICI BACKS CLINTON'S BUDGET PLAN ANGERING SOME IN GOP WITH REVERSAL BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON REPUBLICAN SEN PETE DOMENICI ANGERING SOME OF HIS GOP COLLEAGUES SAID HE WILL OPPOSE ADDITIONAL CUTS IN FEDERAL DISCRETIONARY SPENDING AND WILL BACK THE OUTLINES OF PRESIDENT CLINTON'S 15 TRILLION 1995 BUDGET THE SURPRISE MOVE BY MR DOMENICI THE RANKING REPUBLICAN ON THE SENATE BUDGET COMMITTEE CAME AT THE START OF HOUSESENATE NEGOTIATIONS OVER DIFFERENCES IN BUDGET RESOLUTIONS PASSED BY THE TWO CHAMBERS THE PRINCIPAL DIFFERENCE IS AN EXTRA 26 BILLION IN DISCRETIONARYSPENDING CUTS OVER FIVE YEARS THE SENATE APPROVED THE CUTS OVER THE OBJECTIONS OF DEMOCRATIC LEADERS AND THE WHITE HOUSE WHO WORRY THAT THEY WOULD SQUEEZE BOTH THE DEFENSE BUDGET AND THE PRESIDENT'S DOMESTIC INITIATIVES MR DOMENICI HAD JOINED A BIPARTISAN COALITION OF SENATORS IN APPROVING THE EXTRA CUTS DURING BUDGET COMMITTEE DELIBERATIONS BUT SAID HE CONCLUDED HE HAD MADE A MISTAKE BECAUSE THE CUTS WOULD SQUEEZE PENTAGON SPENDING TOO MUCH THE NEW MEXICO REPUBLICAN TRIED UNSUCCESSFULLY ON THE SENATE FLOOR TO SHIFT MOST OF THE CUTS FROM DISCRETIONARY PROGRAMS FOR WHICH CONGRESS MAKES ANNUAL APPROPRIATIONS TO FEDERAL BENEFIT PROGRAMS SUCH AS MEDICARE WHICH MANY ANALYSTS CONSIDER THE MOST IMPORTANT CONTRIBUTORS TO THE BUDGET DEFICIT HIS NEW POSITION SCRAMBLES PROSPECTS FOR HOUSESENATE NEGOTIATIONS AND LEAVES SENATORS OF BOTH PARTIES COUNTING VOTES ABANDONMENT OF THE 26 BILLION IN ADDITIONAL CUTS WOULD CAUSE SOME DEFICITMINDED DEMOCRATS TO OPPOSE THE BUDGET RESOLUTION WHICH SERVES AS A BLUEPRINT FOR OVERALL FEDERAL SPENDING LEVELS IT ALSO RAISES THE CURIOUS PROSPECT OF MR DOMENICI'S ROUNDING UP GOP VOTES TO HELP DEMOCRATIC LEADERS PASS THE RESOLUTION OF COURSE NEGOTIATORS COULD YET END UP SPLITTING THE DIFFERENCE BETWEEN THE HOUSE AND SENATE POSITIONS AS MANY LAWMAKERS HAVE PREDICTED FOR SEVERAL WEEKS SEN CHARLES GRASSLEY R IOWA WHO COSPONSORED THE ADDITIONAL CUTS WITH SEN JAMES EXON D NEB BLASTED MR DOMENICI'S POSITION AS A BLOW TO REPUBLICAN EFFORTS TO RECAPTURE THE POLITICAL HIGH GROUND ON SPENDING ISSUES OUR POSITION HAS BEEN UNDERCUT THE IOWAN SAID CALLING IT THE MOST DEVASTATING MOVE BY OUR PARTY'S LEADERSHIP SINCE GEORGE BUSH MOVED HIS LIPS WHAT A CROCK RESPONDED MR DOMENICI ADDING THAT HE WOULD CONTINUE TO CHALLENGE MR CLINTON'S SPENDING PRIORITIES IN THE APPROPRIATIONS PROCESS THE SPAT CREATES A NEW HEADACHE FOR SENATE GOP LEADER ROBERT DOLE OF KANSAS THOUGH MR DOLE SHARES MR DOMENICI'S CONCERN THAT FURTHER DISCRETIONARYSPENDING CUTS WOULD HIT DEFENSE HE WILL COME UNDER STRONG PRESSURE FROM THE REPUBLICAN CAUCUS TO OPPOSE THE BUDGET RESOLUTION WHETHER OR NOT THE EXTRA CUTS ARE INCLUDED 9404210085 940421 MARKETING & MEDIA ADVERTISING FTC IS UNDER PRESSURE TO BAN ADS OF HEALTHIER' LOWTAR CIGARETTES BY EBEN SHAPIRO ADVERTISING FOR LOWTAR AND LOWNICOTINE CIGARETTES MAY BE THE NEXT CASUALTY IN THE FEDERAL GOVERNMENT'S ASSAULT ON THE EMBATTLED TOBACCO INDUSTRY THE FEDERAL TRADE COMMISSION IS UNDER MOUNTING PRESSURE FROM SOME CONGRESSMEN AND HEALTH GROUPS TO PROHIBIT ADVERTISING OF LOWTAR CIGARETTES THE PROSPECT OF SUCH A BAN CAME TO THE FORE RECENTLY WHEN FOOD AND DRUG COMMISSIONER DAVID A KESSLER SHARPLY CRITICIZED THE FTC'S METHOD OF MEASURING TAR AND NICOTINE DR KESSLER TOLD CONGRESS LAST MONTH THAT IT IS A MYTH THAT PEOPLE WHO SMOKE LOWNICOTINE CIGARETTES GET LESS NICOTINE THAN PEOPLE WHO SMOKE FULLSTRENGTH CIGARETTES HE SAID WE ARE CONCERNED THAT CONSUMERS ASSUME THAT LOWYIELD CIGARETTES DELIVER LOW TAR AND NICOTINE WHEN IN REALITY THEY DO NOT SMOKERS COMPENSATE FOR THE LOWER TAR AND NICOTINE LEVELS IN LOWTAR CIGARETTES BY INHALING DEEPER TAKING MORE FREQUENT PUFFS AND ULTIMATELY SMOKING MORE CIGARETTES ACCORDING TO A NUMBER OF STUDIES EVEN SO CIGARETTE COMPANY ADVERTISEMENTS SUGGEST THAT IT IS HEALTHIER TO SWITCH TO LOWTAR BRANDS TO ARGUE THAT IT IS HEALTHIER IS ABSOLUTELY WRONG SAYS CONGRESSMAN MIKE SYNAR DOKLA WHO HAS INTRODUCED LEGISLATION THAT WOULD REQUIRE TOBACCO COMPANIES TO DOCUMENT HEALTH CLAIMS WHEN THEY SELL LOWTAR AND NICOTINE CIGARETTES OR TO STOP MAKING SUCH CLAIMS THE FTC SHOULD MOVE AND ABOLISH LOWTAR ADVERTISING SAYS REP SYNAR SOME HEALTH EXPERTS QUESTION THE WISDOM OF THE PROPOSED BAN BECAUSE A NUMBER OF PEOPLE HAVE QUIT SMOKING BY USING TECHNIQUES SUCH AS NICOTINE FADING THAT INVOLVE PROGRESSIVELY SWITCHING TO CIGARETTES WITH A LOWER AND LOWER NICOTINE CONTENT AND THEN FINALLY STOPPING COMPLETELY ALSO THERE ARE SOME HEALTH BENEFITS TO SMOKING FILTERED LOWTAR CIGARETTES COMPARED TO UNFILTERED HIGHTAR CIGARETTES HEALTH GROUPS HAVE ALSO PETITIONED THE FTC WHICH MONITORS TOBACCO ADVERTISING TO PROHIBIT ADVERTISING OF LOWTAR CIGARETTES ON THE GROUND THAT SUCH ADS MISLEAD THE PUBLIC ABOUT HEALTH EFFECTS TOBACCO COMPANIES HAVE LONG FOUGHT ADVERTISING RESTRICTIONS AND THERE IS NO ASSURANCE THAT THE FTC WILL ACT LEE PEELER AN FTC OFFICIAL SAYS WE ARE AWARE OF THE LIMITATIONS OF THE NUMBERS WE ARE LOOKING AT A RANGE OF POSSIBLE OPTIONS LAST YEAR DESPITE A STAFF RECOMMENDATION THE FTC REFUSED TO RESTRICT RJR NABISCO HOLDINGS CORP'S JOE CAMEL CAMPAIGN LOWTAR BRANDS SUCH AS PHILIP MORRIS CO'S MERIT AND AMERICAN TOBACCO CO'S CARLTON ARE CHOSEN BY A GREATER PERCENTAGE OF SMOKERS EACH YEAR NEARLY 60 OF THE US CIGARETTE MARKET IS NOW LOWTAR BRANDS ACCORDING TO WHEAT FIRST SECURITIES A RICHMOND VA BROKERAGE FIRM THE INDUSTRY SPENDS A DISPROPORTIONATELY HIGH PERCENTAGE OF ITS MARKETING BUDGET PROMOTING LOWTAR BRANDS ACCORDING TO THE FTC IN 1991 THE MOST RECENT YEAR FOR WHICH DATA IS AVAILABLE THE TOBACCO INDUSTRY SPENT 294 BILLION PROMOTING LOWTAR BRANDS 64 OF THE TOTAL 46 BILLION SPENT ON ADVERTISING CIGARETTES BRANDS WITH 15 MILLIGRAMS OR LESS OF TAR GRABBED 605 OF THE MARKET IN 1991 ACCORDING TO THE FTC THE ATTACK ON LOWTAR CIGARETTES REFLECTS MUCH OF THE CURRENT WASHINGTON DEBATE OVER TOBACCO AS WAS THE CASE IN THE FUROR OVER NICOTINE MANIPULATION MOST OF THE INFORMATION BEING MARSHALLED AGAINST LOWTAR ADVERTISING HAS BEEN AVAILABLE FOR YEARS THAT INFORMATION IS GETTING RENEWED ATTENTION NOW BECAUSE THE POLITICAL CLIMATE IS SO FERVENTLY ANTITOBACCO IN ATTACKING THE FTC'S METHODS DR KESSLER CITED RESEARCH PUBLISHED IN 1983 TO OBTAIN THE TAR AND NICOTINE RATING DISPLAYED IN TOBACCO ADVERTISEMENTS THE INDUSTRY USES A MACHINE THAT TESTS CIGARETTES BY TAKING ONE TWOSECOND PUFF EACH MINUTE IN 1987 THE FTC CLOSED ITS OWN TESTING LABORATORY AND BEGAN COLLECTING THE TAR AND NICOTINE LEVELS FROM INDIVIDUAL TOBACCO COMPANIES WHICH USE FTC RESEARCH METHODS BECAUSE THE MACHINES DON'T REPLICATE ACTUAL SMOKING PATTERNS DR KESSLER SAID THAT MOST PEOPLE WHO SMOKE LIGHT CIGARETTES DON'T REALIZE THAT THEY MAY BE GETTING A FAR DIFFERENT TAR AND NICOTINE LEVEL THAN INDICATED ON THE PACK A SMOKER'S TAR AND NICOTINE CONSUMPTION IS A FUNCTION OF PUFF VOLUME PUFF DURATIONS INHALATION FREQUENCY DEPTH OF INHALATION AND THE NUMBER OF CIGARETTES SMOKED SMOKERS ALSO ABSORB MORE TAR AND NICOTINE BY BLOCKING WITH THEIR FINGERS THE PINPRICK VENTILATION HOLES IN THE CIGARETTE FILTERS THE SMOKING MACHINE DOES NOT COVER THOSE VENTILATION HOLES PEOPLE CLOSE TO THE FTC SAY THAT THE AGENCY'S HESITATION ABOUT AN AD BAN STEMS PARTLY FROM A CONCERN THAT BANNING THE RATINGS NUMBERS WOULD LEAD TO A RETURN TO STRONGER CIGARETTES SOME HEALTH ADVOCATES BELIEVE LOWTAR ADVERTISEMENTS FOR CIGARETTES ARE DANGEROUS BECAUSE THEY GIVE SMOKERS A FALSE SENSE OF SAFETY ACCORDING TO A GALLUP ORGANIZATION SURVEY SPONSORED BY A HEALTH GROUP NEARLY HALF OF THE RESPONDENTS SAID THAT LOWTAR ADVERTISEMENTS FOR CIGARETTES CONVEY THAT SUCH BRANDS ARE SAFER STEVE PARRISH GENERAL COUNSEL FOR PHILIP MORRIS SAYS THAT DESPITE THE DIFFERENCES IN HOW PEOPLE SMOKE THE FTC NUMBERS USED ON CIGARETTE PACKS AND IN ADS ARE STILL A GOOD MEASURE OF HOW MUCH TAR AND NICOTINE A SMOKER GETS MR PARRISH ADDS THAT ANY FUTURE BAN WOULD ILL SERVE CONSUMERS WHO ARE TRYING TO CHOOSE LOWER TAR AND NICOTINE CIGARETTES PHILIP MORRIS HAS RECENTLY BEEN CRITICIZED FOR ITS LOWTAR MERIT ADS WITH HEADLINES THAT TELL SMOKERS YOU BET YOU CAN CRITICS SAY THE SLOGAN IMPLIES THAT SWITCHING TO MERIT IS A POSITIVE HEALTHY STEP A SPOKESMAN FOR AMERICAN TOBACCO CO THE MAKER OF CARLTON AN ULTRALOW BRAND THAT STATES CARLTON IS LOWEST ON EACH PACK SAYS WE ARE OPPOSED TO ANY BAN ON ADVERTISING FOR LEGAL PRODUCTS WE THINK IT IS BAD PUBLIC POLICY AND BRINGS UP GENUINE FIRST AMENDMENT ISSUES SAATCHI & SAATCHI CO SAID ITS BADILLO/SAATCHI & SAATCHI UNIT AND OTHER AGENCIES IN ABOUT 22 LATIN AMERICAN COUNTRIES ARE FORMING A STANDALONE REGIONAL AGENCY NETWORK FIRSTYEAR BILLINGS ARE PROJECTED AT 315 MILLION SAATCHI WILL RECEIVE A 20 STAKE IN THE NEW VENTURE DUBBED NAZCA S&S IN EXCHANGE FOR OWNERSHIP OF SAATCHI'S WHOLLY OWNED BADILLO/SAATCHI & SAATCHI UNIT BASED IN SAN JUAN PUERTO RICO BADILLO'S NET ASSETS AS OF DEC 31 WERE 101 MILLION SAATCHI SAID IN ADDITION TO THE MINORITY STAKE IN NAZCA SAATCHI ALSO RECEIVES 59 MILLION IN THE FORM OF AN INTERESTBEARING NOTE THE TRANSACTION WHICH MUST MEET WITH APPROVAL FROM SAATCHI'S BOARD AND BANKERS ISN'T EXPECTED TO AFFECT THE HOLDING COMPANY'S NET ASSET VALUE SAATCHI SAID ANGEL COLLADOSCHWARZ CHIEF EXECUTIVE OF SAATCHI'S BADILLO UNIT WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OF NAZCA S&S MR COLLADOSCHWARZ 43 YEARS OLD WILL HOLD A 30 STAKE IN THE NEW VENTURE THE REMAINING 50 OF NAZCA S&S IS TO BE OWNED BY PRIVATE INVESTORS FROM WHOM NAZCA HOPES TO RAISE 10 MILLION AND THE LOCAL AGENCIES AND EMPLOYEES IN THE NETWORK AFTER BEING A HORROR STORY LATIN AMERICA IS STARTING TO LOOK LIKE A VERY ATTRACTIVE AREA FOR AGENCIES SAID JAMES DOUGHERTY INDUSTRY ANALYST AT DEAN WITTER REYNOLDS AGENCIES ARE SEEING NOTICEABLE PROFITS HE SAID AS CURRENCIES STABILIZE STATERUN ECONOMIES RELAX AND A VIABLE MIDDLECLASS OF CONSUMERS EMERGES GEORGE GUIMARAES CHIEF EXECUTIVE OF PUBLICIS/BLOOM'S NEW YORK OPERATIONS WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF THE NEW YORK OFFICE OF SAATCHI & SAATCHI'S CAMPBELL MITHUN ESTY MR GUIMARAES 49 YEARS OLD SUCCEEDS TONY WAINWRIGHT WHO WAS NAMED CHAIRMAN OF CME'S NEW YORK OFFICE MR GUIMARAES MOVED TO LEAD BLOOM TWO YEARS AGO FROM YOUNG & RUBICAM BOB BLOOM CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PUBLICIS/BLOOM WILL TAKE OVER MR GUIMARAES'S NEW YORK RESPONSIBILITIES THE OGILVIES AYER WON FIRST PLACE IN THE FIRST DAVID OGILVY AWARD GIVEN BY THE ADVERTISING RESEARCH FOUNDATION FOR ITS AT&T YOU WILL CORPORATE CAMPAIGN THE AWARD IS GIVEN FOR RESEARCH EXCELLENCE IN SUPPORT OF CREATIVE AND SUCCESSFUL ADVERTISING CAMPAIGNS SECOND PLACE WAS AWARDED TO FOOTE CONE & BELDING/LEBER KATZ PARTNERS FOR NABISCO'S OREO COOKIES THIRD PLACE WENT TO WPP GROUP'S J WALTER THOMPSON FOR GOODYEAR TIRE & RUBBER'S AQUATRED TIRE NEW LABEL IN AN ONGOING EFFORT TO BOOST SOUP SALES CAMPBELL SOUP SAID IT IS REDESIGNING ITS FAMILIAR REDANDWHITE LABEL THE NEW CONDENSEDSOUP LABEL STILL RED AND WHITE HAS A PHOTOGRAPH OF A BOWL OF SOUP IN THE MIDDLE A RECIPE PANEL ON THE BACK AND A BLURB NEW LOOK SAME GREAT SOUP 9404210084 940421 SMALL STOCK FOCUS KEY INDEXES FALL TO LAST SUMMER'S LOWS AS EARNINGS JITTERS SWEEP OVER MARKET BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK EARNINGS WORRIES SLAMMED THE EQUITIES MARKET PUSHING SMALLCOMPANY STOCK PRICES DOWN TO LEVELS NOT SEEN SINCE LAST SUMMER THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION STOCKS DROPPED 348 OR 142 TO 24214 ITS LOWEST CLOSE SINCE AUG 17 THE NASDAQ COMPOSITE INDEX SLID 733 OR 103 TO 70552 ITS WORST FINISH SINCE JULY 30 BOTH INDEXES FELL FOR THE THIRD STRAIGHT SESSION ALTHOUGH THEY BOUNCED OFF THEIR LOWS ON A LATE BOND MARKET RALLY THE RUSSELL 2000 DROPPED AS LOW AS 24195 AND THE NASDAQ COMPOSITE SANK TO 70315 IN MIDAFTERNOON TRADING ALTHOUGH THE TREASURY 30YEAR BOND ROSE MORE THAN 1/2 POINT DEPRESSING ITS YIELD TO 731 RATES REMAIN RELATIVELY HIGH CONCERNS ABOUT THE EFFECT OF CLIMBING RATES ON FUTURE CORPORATE PROFIT REPORTS HAVE BEGUN TO WEIGH HEAVILY ON INVESTOR PSYCHOLOGY MARKET WATCHERS SAID IF RATES ARE HIGHER WHICH MAKES THE COST OF BORROWING TO DO BUSINESS HIGHER THIS HURTS COMPANY PROFITS SAID ARNOLD OWEN MANAGING DIRECTOR OF TRADING AT SOUNDVIEW FINANCIAL CORP ADD TO THIS THE FACT THAT EVEN WHEN A COMPANY LIKE CHRYSLER COMES OUT WITH SPECTACULAR EARNINGS IT'S FOR SALE AND RATES CONTINUE TO BE THE CENTERPIECE OF THE MARKET MR OWEN SAID LOTUS DEVELOPMENT A BIG SOFTWARE COMPANY SLUMPED 7 7/8 TO 56 3/4 DESPITE REPORTING IMPROVED FIRSTQUARTER EARNINGS CONCERNS ABOUT REVENUE WERE CITED SMALL TECHNOLOGY STOCKS ALSO FELL WEITEK A SUNNYVALE CALIF INTEGRATED CIRCUITS CONCERN DECLINED 15/16 TO 4 11/16 FOURTH SHIFT A MINNEAPOLIS SOFTWARE FIRM STUMBLED 3/4 TO 5 1/4 AND BROOKTROUT TECHNOLOGY A NEEDHAM MASS COMPUTER HARDWARE AND SOFTWARE COMPANY SLIPPED 1/4 TO 13 1/2 AMONG RATESENSITIVE STOCKS ASPEN BANCSHARES ASPEN COLO ROSE 1 3/4 TO 20 PEOPLES BANCORP OF WORCESTER WORCESTER MASS ADDED 1 1/2 TO 50 3/4 AND BSB BANCORP BINGHAMTON NY ROSE 1 TO 24 BUT MUTUAL SAVINGS BANK BAY CITY MICH SLID 3 1/4 TO 12 DESPITE IMPROVED EARNINGS IN OTHER EARNINGS NEWS NETFRAME SYSTEMS TOPPLED 4 1/2 TO 9 FOLLOWING DISAPPOINTING FIRSTQUARTER EARNINGS LATE TUESDAY THE MILPITAS CALIF DEVELOPER OF COMPUTER SUPERSERVERS SAID NET INCOME FOR THE PERIOD CAME IN AT 13 CENTS A SHARE BELOW ANALYSTS' ESTIMATES OF 18 CENTS AND ON PAR WITH LAST YEAR'S EARNINGS SUPERMAC TECHNOLOGY SUNNYVALE CALIF A SUPPLIER OF DESKTOP COLOR GRAPHICS SYSTEMS TUMBLED 1 5/8 TO 5 5/8 FOLLOWING ITS RELEASE OF A 17CENTSASHARE FIRSTQUARTER LOSS COMPARED WITH NET INCOME OF 25 CENTS A YEAR EARLIER ANALYSTS EXPECTED A LOSS OF TWO CENTS A SHARE FOR THE LATEST PERIOD BUT TRICORD SYSTEMS LEAPED 1 1/2 TO 12 1/2 THE PLYMOUTH MINN NETWORK SUPERSERVERS FIRM SAID FIRSTQUARTER EARNINGS ROSE TO 21 CENTS A SHARE FROM EIGHT CENTS A YEAR EARLIER IMPROVED FISCAL SECONDQUARTER EARNINGS LIFTED BOOLE & BABBAGE 1 7/8 TO 24 7/8 THE SAN JOSE CALIF SOFTWARE DEVELOPER POSTED EARNINGS OF 58 CENTS A SHARE FOR THE PERIOD UP FROM 41 CENTS LAST YEAR SEITEL NYSE SURGED 3 1/4 TO 23 1/2 THE HOUSTON SEISMIC DATA BANK COMPANY ESTIMATES ITS FIRSTQUARTER EARNINGS EXCEEDED WALL STREET'S PROJECTION OF 22 CENTS A SHARE IN THE YEAREARLIER PERIOD THE COMPANY POSTED NET INCOME OF 12 CENTS A SHARE CONMED CLIMBED 2 1/2 TO 14 1/2 THE UTICA NY MEDICAL DEVICES COMPANY POSTED FIRSTQUARTER NET INCOME OF 27 CENTS A SHARE TOPPING THE 11 CENTS EARNED A YEAR EARLIER AND ANALYSTS' ESTIMATES OF 19 CENTS SUPERCONDUCTOR TECHNOLOGIES ROSE 7/8 TO 9 1/8 THE SANTA BARBARA CALIF COMPANY SAID IT FILED A PREMARKET NOTIFICATION WITH THE FOOD AND DRUG ADMINISTRATION FOR ITS SUPERSENSOR COIL WHICH IS DESIGNED TO IMPROVE IMAGE QUALITY AND REDUCE THE COST OF MAGNETIC RESONANCE IMAGING CREATIVE BIOMOLECULES FELL 2 1/8 OR 35 TO 4 THE HOPKINTON MASS COMPANY SAID IT WASN'T ABLE TO DETERMINE IF ITS OP1 PRODUCT HELPED TEETH FORM A NEW DENTIN BECAUSE OF AN UNEXPECTED CLINICAL RESPONSE IN BOTH THE TREATMENT AND CONTROL GROUPS SHARES OF HEALTH MAINTENANCE ORGANIZATION COMPANIES WERE WEAK FOR A SECOND DAY MAXICARE HEALTH PLANS LOS ANGELES DECLINED 1/2 TO 13 1/4 AND SIERRA HEALTH SERVICES LAS VEGAS FELL 1 5/8 TO 24 3/4 ON THE AMERICAN STOCK EXCHANGE HENRY F OTTO A SMALLSTOCK MANAGER AT BRANDYWINE ASSET MANAGEMENT IN WILMINGTON DEL SAID HIS PORTFOLIO IS DOWN ABOUT 2 FOR THE YEARTODATE COMPARED WITH THE RUSSELL 2000 WHICH SHOWS A 636 DECLINE FOR 1994 WE'RE STILL DEFINITELY LONGTERM INVESTORS MR OTTO SAID HE THINKS SMALLER STOCKS SHOULD PERFORM BETTER RELATIVE TO LARGER STOCKS ALTHOUGH HE EXPECTS A FLAT YEAR HIS PORTFOLIO IS HEAVILY WEIGHTED WITH FINANCIALS UTILITIES AND SMALL RETAILERS BUT IS LIGHT ON THE BELEAGUERED TECHNOLOGY GROUP FINANCIAL ISSUES HE SAID HAD BEEN SO BEATEN DOWN LAST FALL THAT THEY HAVE HELD UP FAIRLY WELL DURING THE RECENT ROUND OF SELLING 9404210083 940421 WHO'S NEWS CHASE HOLDERS NEARLY CLEAR ANNUAL BOARD ELECTIONS NEW YORK CORPORATE GADFLY EVELYN Y DAVIS CAME WITHIN A HAIRBREADTH OF WINNING A PROXY CONTEST AT CHASE MANHATTAN CORP'S ANNUAL MEETING THAT WOULD HAVE REQUIRED THE BANK TO ELECT DIRECTORS ANNUALLY CHASE AND OVER HALF OF THE 1500 BIGGEST US COMPANIES HAVE BOARDS WHOSE DIRECTORS HAVE STAGGERED TERMS ACCORDING TO THE INVESTOR RESPONSIBILITY RESEARCH CENTER MANY COMPANIES INSTITUTED STAGGERED BOARDS IN THE 1980S AS A TOOL TO THWART UNWANTED TAKEOVERS BUT ON TUESDAY CHASE DISCLOSED AT ITS ANNUAL MEETING THAT 49 OF SHAREHOLDERS VOTED TO REQUIRE THE ANNUAL ELECTION OF DIRECTORS SHAREHOLDER ACTIVISTS AND CORPORATE GOVERNANCE EXPERTS SAY THAT INVESTORS ARE CLEARLY BECOMING CONVERTS TO THE ANNUAL ELECTION A SPOKESMAN FOR CHASE SAID THAT A GROWING NUMBER OF INSTITUTIONAL SHAREHOLDERS ARE CALLING FOR ANNUAL ELECTION OF DIRECTORS AND CHAIRMAN THOMAS LABRECQUE SAID AT THE ANNUAL MEETING THAT THE BANK WILL CONTINUE TO REVIEW THE PROPOSAL LAST YEAR CHEMICAL BANKING CORP'S SHAREHOLDERS APPROVED A PROPOSAL BY ITS MANAGEMENT TO CHANGE THE BOARD FROM STAGGERED ELECTIONS TO ANNUAL ELECTIONS 9404210082 940421 LEISURE & ARTS BOOKSHELF CARTELING IS A TOUGH RACKET BY MAX BOOT CONTRARY TO POPULAR BELIEF IT'S QUITE POSSIBLE TO ENJOY AN ACADEMIC BOOK ESPECIALLY IF IT'S NOT ASSIGNED READING FOR A COLLEGE COURSE BUT YOU USUALLY HAVE TO TAKE SOME SIMPLE PRECAUTIONS LIKE SKIPPING THE FIRST CHAPTER AS DEBORA L SPAR'S THE COOPERATIVE EDGE THE INTERNAL POLITICS OF INTERNATIONAL CARTELS CORNELL UNIVERSITY PRESS 273 PAGES 2995 DEMONSTRATES THE INTRODUCTION IS LIKELY TO BE BOILERPLATE EXPLAINING HOW THIS STUDY REFUTES PROF X OR MODIFIES THE FINDINGS OF DR Y ONLY ACADEMICS WILL CARE ONCE PAST THE DAUNTING BEGINNINGS MS SPAR WHO HANGS HER HAT AT THE HARVARD BUSINESS SCHOOL REWARDS THE READER WITH AN INTERESTING AND TIMELY SURVEY OF HOW VARIOUS COUNTRIES HAVE TRIED TO CORNER THE MARKET IN VITAL COMMODITIES HER FOCUS IS ON DIAMONDS GOLD SILVER AND URANIUM ONLY DIAMONDS HAVE BEEN EFFECTIVELY CARTELIZED ALTHOUGH GOLD COMES CLOSE ATTEMPTS TO COORDINATE THE SILVER AND URANIUM SELLERS HAVE NEVER GOTTEN OFF THE GROUND WHAT ACCOUNTS FOR THE VARYING FORTUNES OF THESE CARTELS MS SPAR ARGUES CONVINCINGLY THAT IT DOESN'T HAVE ANYTHING TO DO WITH THE INHERENT CHARACTERISTICS OF THESE COMMODITIES ALL FOUR ARE GREATLY TREASURED THERE ARE NO EASY SUBSTITUTES FOR ANY OF THEM AND THE OVERWHELMING SHARE OF EACH COMMODITY IS TO BE FOUND IN A HANDFUL OF COUNTRIES IN ALL FOUR CASES THE COUNTRIES CONTROLLING THE COMMODITIES HAVE AN INTEREST IN CUTTING SUPPLY IN ORDER TO HIKE DEMAND A LA OPEC BUT CONSIDER THE PITIFUL FATE OF THE WOULDBE URANIUM CARTEL IN THE 1970S A GUNGHO CANADIAN BUREAUCRAT DECIDED TO GET THE MAJOR URANIUM PRODUCERS CANADA FRANCE SOUTH AFRICA AUSTRALIA AND THE US INTO A PRICECONTROL MECHANISM THE US BOWED OUT IMMEDIATELY THE OTHER POWERS MET TO SET UP A COMPLICATED AND SECRETIVE PROCESS OF ALLOCATION AND PRICING A SECRETARIAT WAS EVEN ESTABLISHED IN PARIS BUT IN AN EXPERIENCE THAT SHOULD BE REMEMBERED BY EUROPEAN UNION ENTHUSIASTS TODAY THE FRENCH BUREAUCRATS WERE UTTERLY UNABLE TO PRESERVE UNITY WESTINGHOUSE CORP CHARGED ILLEGAL COLLUSION AND THE CARTEL MEMBERS WENT THEIR SEPARATE WAYS IN LARGE PART BECAUSE FREETRADE GROUPS IN CANADA AND AUSTRALIA COULDN'T STOMACH PRICE FIXING THE RESULT URANIUM PRICES WHICH SOARED TO 55 A POUND IN 1976 DIPPED TO 30 A POUND IN 1980 THE LESSON CLEARLY IS THAT LIBERAL DEMOCRACIES LIKE CANADA OR THE US ARE LESSTHANIDEAL PARTNERS FOR MANAGED TRADE ARRANGEMENTS A FACT THAT BILL CLINTON WOULD DO WELL TO KEEP IN MIND AS HE TRIES TO SET AN INDUSTRIAL POLICY IT TAKES AN AUTOCRACY TO RUN AN EFFECTIVE CARTEL THUS IT'S NO SURPRISE THAT THE MOST EFFECTIVE CARTELIZERS HAVE BEEN THE SOUTH AFRICANS AND THE SOVIETS THE KEY PLAYER IN BOTH THE GOLD AND DIAMOND MARKETS IS THE OPPENHEIMER FAMILY AND ITS CLOSELY HELD COMPANIES NOTABLY DE BEERS CENTENARY AG AND ANGLOAMERICAN CORP OF SOUTH AFRICA THANKS TO BYZANTINE CORPORATE STRUCTURES AND SOUTH AFRICA'S LENIENT RULES IT'S ALMOST IMPOSSIBLE FOR OUTSIDERS TO UNDERSTAND LET ALONE INFLUENCE HOW THESE FIRMS OPERATE THAT GIVES THE OPPENHEIMERS FULL FREEDOM TO RUN A RUTHLESS PRICESETTING STRATEGY THE STORY OF THE GOLD AND DIAMOND MARKETS HAS BEEN WELL TOLD MANY TIMES BY AUTHORS RANGING FROM GEOFFREY WHEATCROFT TO EDWARD JAY EPSTEIN MS SPAR ADDS LITTLE TO THEIR EFFORTS SHE SEEMS TO HAVE RESERVED HER ORIGINAL RESEARCH FOR THE URANIUM CHAPTER BUT SHE DOES EFFECTIVELY PULL SOME LESSONS OUT OF THEIR WORK FIRST SHE SHOWS THAT AN EFFECTIVE CARTEL MUST BE ABLE TO CONTROL SUPPLY WHICH DE BEERS DOES EITHER THROUGH DIRECT OWNERSHIP OR CLOSE COOPERATION WITH OTHER MINE OWNERS SECOND THE CARTEL MUST BE ABLE TO REGULATE SALES DE BEERS DOES THIS BY RUNNING THE WORLD CLEARINGHOUSE FOR DIAMONDS IN LONDON THE GOLD MARKET IS SOMEWHAT MORE DIFFUSE AND HENCE LESS REGIMENTED HOW DOES ONE COMPANY CONVINCE VIRTUALLY EVERYONE ELSE TO BUY AND SELL THROUGH IT DE BEERS USES A COMBINATION OF CARROTS AND STICKS WITH THE SOVIETS WHO COULD HAVE DESTROYED THE CARTEL BY DUMPING ON THE WORLD MARKET DE BEERS WAS CONCILIATORY WITH EVERYONE ELSE IT PLAYED HARDBALL MS SPAR RELATES FOR EXAMPLE HOW DE BEERS DIPPED INTO ITS DEEP POCKETS TO UNDERCUT ISRAELI DEALERS WHO HAD DARED TO BUCK ITS PRICE IN 1977 THE COMPANY WAS ABLE TO DO THIS BECAUSE IT ENJOYED AUTONOMY FROM SHAREHOLDERS WANTING A SHORTTERM RETURN OF COURSE IF THE FORTUNES OF AN INTERNATIONAL CARTEL ARE DEPENDENT ON THE INTERNAL STABILITY OF ITS MEMBERS AS MS SPAR ARGUES THEN TURMOIL INSIDE THE COUNTRIES IS LIKELY TO PRODUCE UPHEAVALS IN THE MARKETS THAT'S ALREADY HAPPENED TO A CERTAIN DEGREE SINCE THE FALL OF THE SOVIET UNION RUSSIAN BUREAUCRATS ARE COOPERATING LESS WITH THE OPPENHEIMERS AND FREELANCING MORE MORE GOLD AND DIAMONDS HAVE TRICKLED INTO THE WEST BUT THE OLD STRUCTURE HOWEVER RICKETY CONTINUES TO STAND IT MAY NOT LAST MUCH LONGER THE SHOCK OF THE SOUTH AFRICAN ELECTION ON APRIL 26 MAY PUSH IT OVER THE EDGE WHICH IS A RESULT THAT CONSUMERS EVERYWHERE COULD APPLAUD MS SPAR SUGGESTS HOWEVER THAT THE OPPENHEIMERS' CURTAIN CALL ISN'T COMING SOON SINCE THEY OWN A GOOD CHUNK OF THE COUNTRY'S MINERAL WEALTH SHE WRITES EVEN A RADICAL GOVERNMENT MIGHT BE TEMPTED TO WOO THE ANGLO EMPIRE RATHER THAN DESTROY IT WHICH I SUPPOSE MEANS HOLD ONTO YOUR GOLD FOR A WHILE LONGER MR BOOT IS AN ASSISTANT FEATURES EDITOR ON THE JOURNAL'S EDITORIAL PAGE 9404210081 940421 SEARS IS PLANNING TO OFFER ITS OWN LINE OF COSMETICS CHICAGO SEARS ROEBUCK & CO SCORNED BY POPULAR FASHIONORIENTED COSMETICS SELLERS SAID IT WILL CREATE AND MARKET ITS OWN COSMETICS LINE YESTERDAY THE BIG CHICAGOBASED RETAIL AND INSURANCE CONCERN SAID IT IS FORMING ITS OWN COSMETICS DIVISION THAT WILL BE LED BY PROMINENT COSMETICS EXECUTIVE PIERRE ROGERS SEARS PLANS TO LAUNCH THE COSMETICS LINE IN 200 OF ITS 800 STORES IN THE FALL OF 1995 THE MOVE IS PART OF SEARS'S YEAROLD EFFORT TO BECOME MORE LIKE A TRADITIONAL DEPARTMENT STORE THAN THE GENERAL MERCHANDISE RETAILER IT HAD BEEN IN THAT EFFORT SEARS ALREADY HAS INSTALLED FULLFLEDGED COSMETICS DEPARTMENTS IN 26 OF ITS STORES BUT SEARS HAS BEEN UNSUCCESSFUL IN PERSUADING POPULAR MORE UPSCALE COSMETICS MAKERS SUCH AS ESTEE LAUDER INC AND ELIZABETH ARDEN INC TO SELL THEIR PRODUCTS IN SEARS STORES SUCH UPSCALE COSMETICS MARKETERS HAVE AVOIDED SELLING TO SEARS BECAUSE SOME BELIEVE IT WOULD TARNISH THE UPSCALE IMAGE OF THEIR PRODUCT OTHERS WANT TO AVOID DISPLEASING THE UPSCALE DEPARTMENT STORES THAT SELL THEIR PRODUCTS 9404210080 940421 REVIEW & OUTLOOK EDITORIAL RUSSIAN ADVENTURE CAPITAL AT THE END OF THE LAST EPISODE OF OUR ADVENTURE TALE NIGHT OF THE FALLING RUBLE OUR HEROES THE RUSSIAN REFORMERS HAD BEEN CHASED OFF INTO THE WILDERNESS BY THE EVIL ZHIRINOVSKY THE RUSSIAN ECONOMY WAS STRAPPED TO THE TRAIN TRACKS AND THAT BIG LOCOMOTIVE NEOCOMMUNISM WAS BEARING DOWN THINGS LOOKED HOPELESS NOW AFTER A FEW MONTHS OF DISTRACTIONS WESTERN ATTENTION TUNES BACK INTO THE STORY AND SOMEHOW THE RUSSIAN ECONOMY HAS BEEN RELEASED FROM THE TRACKS AND CAN BE SEEN SITTING ON THE SIDE LOOKING WOEFUL BUT NOT DECAPITATED PROBABLY WE SHOULDN'T BE SURPRISED BY TURNS IN THIS SAGA LAST YEAR'S ELECTION RETURNS BROUGHT A LOT OF TALK ABOUT THE FAILURE OF REFORMS BUT MOST PARTICIPANTS AT THIS WEEK'S EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT MEETINGS IN ST PETERSBURG HAVE LOOKED AROUND AND DECLARED THAT RECENT TRENDS ARE PROMISING THE MOST STRIKING CHANGE HAS BEEN IN THE ATTITUDE OF RUSSIAN CENTRAL BANKER VICTOR GERASHCHENKO ONCE LABELED THE WORLD'S WORST CENTRAL BANKER MR GERASHCHENKO RECENTLY HAS BEEN BY RUSSIAN STANDARDS A MODEL OF MONETARY RECTITUDE HE'S SET STRICT TARGETS SUBSIDIES TO DINOSAUR ENTERPRISES STARTED DRYING UP IN THE LAST QUARTER OF 1993 INFLATION IS NOW AT ITS LOWEST LEVEL SINCE REFORMS BEGAN EVEN MORE BIZARRE MR GERASHCHENKO WAS SEEN RECENTLY ENTHUSIASTICALLY ENDORSING LAND PRIVATIZATION GOOD VIBRATIONS HAVE ALSO BEEN GENERATED BY THE BURST OF WESTERN INTEREST IN RUSSIAN FINANCIAL MARKETS AROUND 400 MILLION IN BRAVE FOREIGN INVESTMENT HAS BEEN PUMPED INTO EQUITY MARKETS OILING THE WHEELS OF INDUSTRIAL RESTRUCTURING BY INDUCING EVER MORE SOPHISTICATED INVESTMENT FUNDS TO TAKE CONTROLLING INTERESTS IN PRIVATIZED COMPANIES ONE OF THE THINGS THAT SUPPOSEDLY FREEMARKET WESTERNERS SHOULD HAVE BEEN ABLE TO TEACH RUSSIANS IS THAT HUMAN PROGRESS DOES NOT DEPEND ON GOVERNMENTS BUT COMES FROM PRIVATE ENDEAVOR BUT WESTERN SPECIALISTS WHO HANG AROUND GOVERNMENTS A LOT THEMSELVES ARE SLOW TO APPRECIATE THIS SO WHEN THE ADMIRED RUSSIAN REFORMERS WERE SENT PACKING FROM THE KREMLIN LAST YEAR WESTERNERS OVERREACTED AND DECLARED ALL WAS LOST CHANGE ISN'T GOING TO COME FROM 10POINT PLANS BUT FROM THE ACCUMULATION OF PRODUCTIVE ACTIVITY OVER DECADES AND DECADES ALREADY SOME BUSINESSMEN HAVE BEGUN TO NOTICE WHOLESALE DISTRIBUTION NETWORKS ARE BEING SET UP CONSUMER TASTES CONTINUE TO MATURE RUSSIA WILL REQUIRE THOUSANDS OF LOCAL HEROES PUSHING BACK CORRUPTION IN THEIR OWN WAYS RUSSIAN PRIVATIZATION IS ENTERING ITS BIG BANG PHASE UNTIL NOW SHARES HAVE BEEN DISTRIBUTED BROADLY ACCORDING TO THE PRIVATIZATION AGENCY 65 OF FIRMS PRIVATIZED THROUGH THE VOUCHER METHOD ARE COVERING THEIR COSTS AND 10 ARE MAKING A PROFIT THE NEXT PHASE WILL INVOLVE PRIVATIZATION OF BIG ENTERPRISES AND WILL FAVOR LARGE INVESTORS NOT MASS PARTICIPATION NEEDLESS TO SAY GOVERNMENT IS STILL A HUGE IMPEDIMENT TO PROGRESS RUSSIA IS A HIGHTAX HIGHTARIFF COUNTRY THOSE WHO DO BUSINESS THERE FACE ENDLESS THREATS A COURT RULING DECLARES ONE DAY THAT EMPLOYEES ARE ENTITLED TO THEIR JOBS FOR LIFE A DECREE IS ISSUED ANOTHER DAY THAT FOREIGNERS MUST PAY A 63 DUTY ON THE IMPORT OF PERSONAL BELONGINGS A LOT OF THIS IS NUTTY THE GOVERNMENT PAYS LIP SERVICE TO THE NEED TO ATTRACT CAPITAL UNDER INTENSE PRESSURE IT SEEMS TO HAVE PULLED BACK FROM A PLAN TO SLAP A 23 VAT TAX ON FOREIGN INVESTMENT BUT THE OFFICIAL BUREAUCRACY IS STILL ORIENTED TOWARD CORRUPTION AND CONTROL MOREOVER OUTPUT CONTINUES TO FALL EXACERBATING THE WOES OF THE STATE SECTOR PARLIAMENTARIANS COULD YET REWRITE THE BUDGET AND DESTROY ALL SEMBLANCE OF FISCAL SANITY INSTITUTIONS PARTICULARLY THOSE THAT ARE SUPPOSED TO ENFORCE AND PROSECUTE THE LAW ARE WEAK STILL OUR SENSE IS THAT THE POLITICAL CLIMATE IS CALMING DOWN SEVERAL REGIONS IN RUSSIA ARE MAKING REAL PROGRESS THEY WILL BEGIN LOBBYING FOR EVEN MORE DECENTRALIZED DECISION MAKING AND A LIGHTER FEDERAL TAX BURDEN THERE ARE A FEW SIGNS THAT SOME RUSSIANS ARE SETTING UP BUSINESSES THAT ACTUALLY MAKE THINGS PEOPLE WANT TO BUY GIVEN RUSSIA'S TAX AND TARIFF POLICIES THE COUNTRY IS NOT GOING TO ATTRACT THE SORT OF ENTHUSIASM GENERATED BY OTHER EMERGING MARKETS BUT IT IS EQUALLY WRONG TO WRITE OFF RUSSIAN REFORM AS A TOTAL FAILURE THIS ISN'T A TECHNOCRATIC LABORATORY BUT A COUNTRY THAT IS SLOWLY DEVELOPING A CIVIL SOCIETY IT'S AN UGLY PROCESS AND DOMESTIC TURMOIL COULD LEAD TO FOREIGN POLICY ADVENTURISM AS NOTED ABOVE BUT RUSSIA IS ALIVE AND STUMBLING 9404210079 940421 LEISURE & ARTS THE MOBILE GUIDE MY QUEST FOR FAIRWAYS LOST BALLS ON THE EMERALD ISLE BY GREG STEINMETZ WHEN I FIRST AGREED TO GO TO IRELAND FOR A GOLF VACATION I HAD SOME DOUBTS I HAD NEVER BEEN TO IRELAND AND I WORRIED ABOUT FEELING SHORTCHANGED THERE'S PLENTY OF GOLF IN THE STATES BUT ONLY IN IRELAND COULD ONE FIND THE GUINNESS BREWERY WANDER AROUND CASTLES OR DO ALL THE OTHER THINGS THAT MAKE IRELAND SO POPULAR WITH AMERICANS I WONDERED IF A TRIP SPENT ENTIRELY ON GOLF COURSES IN THE SOUTHWEST CORNER OF THE COUNTRY WAS A LEGITIMATE WAY TO EXPERIENCE THE PLACE BESIDES IF SOMEONE WANTED TO GOLF IN THE BRITISH ISLES SHOULDN'T THEY REALLY BE IN SCOTLAND WHERE THE GAME WAS INVENTED BUT AFTER SPENDING A WEEK FISHING BALLS OUT OF KNEEHIGH SEAGRASS AND HAMMERING TEE SHOTS DOWN NARROW FAIRWAYS ALONGSIDE THE ATLANTIC MY DOUBTS VANISHED THE COURSES WE VISITED WERE MORE CHALLENGING AND CERTAINLY MORE BEAUTIFUL THAN ANY I HAD EVER PLAYED BEFORE AND BECAUSE IRISH COURSES ARE FAR LESS MANICURED THAN THEIR US COUNTERPARTS I GOT AN AMPLE TASTE OF IRELAND'S LUSH RUGGED COUNTRYSIDE MY FRIENDS AND I BEGAN OUR GOLFING ODYSSEY AT SHANNON AIRPORT WHERE WE RENTED A CAR AND HEADED TO THE FABLED RING OF KERRY A SCENIC ROAD THAT WINDS AROUND IVERAGH PENINSULA OFTEN RUNNING NEAR THE EDGE OF CLIFFS THAT DROP INTO THE SEA DRIVING ON THE LEFT AROUND BLIND CURVES IN THE RAIN IS A SURE WAY TO GET INTO TROUBLE WE FOUND IT STUNNED BY AN ONCOMING TRUCK MY FRIEND WHO WAS DRIVING SCRAPED OUR CAR ON THE SIDE OF A STONE WALL DENTING A SIDE PANEL NOWADAYS THE RING IS TRAVELED BY TOURIST BUSES IN THE PAST THE VISITORS WERE MONKS WHO CAME IN SEARCH OF SOLITUDE AFTER TAKING A QUICK TOUR OF CRAG CAVE BILLED BY THE MANAGEMENT AS IRELAND'S MOST EXCITING SHOWCAVE WE ARRIVED AT OUR FIRST GOLFING DESTINATION WATERVILLE WATERVILLE IS A TINY RESORT TOWN IN COUNTY KERRY POPULAR AMONG THE IRISH WHO ARE DRAWN BY THE SCENERY ON A CLEAR DAY YOU CAN LOOK OUT OVER THE BEACH AND SEE THE SKELLIGS A JAGGED ROCK FORMATION THAT RISES FROM THE OCEAN SEVEN MILES OFFSHORE NEARBY IS BAILE AN SCELIG ONE OF THE FEW TOWNS IN IRELAND WHERE THEY STILL SPEAK IRISH WATERVILLE IS FULL OF PLACES WHERE GOLFERS CAN STAY WE CHOSE THE FANCIEST PLACE OF ALL WATERVILLE HOUSE A 10ROOM HOTEL OWNED BY A GROUP OF AMERICAN INVESTMENT BANKERS WE HAD COME ON THE EVE OF A MONDAY HOLIDAY AND THE PUBS WERE PACKED WEDGED BETWEEN SWEATY IRISH PEOPLE I ORDERED A MURPHY'S IRISH STOUT ALTHOUGH LESS WELLKNOWN THAN GUINNESS MURPHY'S IS JUST AS THICK AND POTENT I ASKED A LOCAL WHETHER THE PUBS WOULD BE LESS CROWDED THE NEXT NIGHT OF COURSE NOT HE SAID THIS IS IRELAND WATERVILLE THE COURSE IS A 7200YARD MONSTER WITH SKINNY FAIRWAYS HIGH ROUGH AND STIFF WINDS WE PLAYED WITHOUT CADDIES BUT THAT ONLY PARTLY EXPLAINS WHY I LOST 12 BALLS IN THE FIRST ROUND THE MAIN REASON IS THAT WATERVILLE HAS NO TOLERANCE FOR SLICES OR HOOKS THE DEEP ROUGH A TANGLE OF SEAGRASS AND PRICKLY BUSHES MAKES FINDING ERRANT BALLS A RARITY WE PLAYED TWO ROUNDS THAT DAY WHICH WAS EASY BECAUSE THE IRISH ENCOURAGE FAST PLAY YOU WON'T FIND MANY BENCHES ON THE COURSES NOR WILL YOU FIND BAR CARTS AND SPEEDY IRISH PLAYERS ARE SOMETIMES BREATHING DOWN YOUR NECK AT WATERVILLE A REGULAR TOLD US HE CHARGES AROUND THE 18 HOLES IN 2 1/2 HOURS AT SOME NEW YORK COURSES IT HAS TAKEN ME SIX HOURS AFTER WATERVILLE WE MOVED ON TO KILLARNEY WITH ITS SHOPS AND HORSEANDBUGGY RIDES KILLARNEY IS A FAVORITE TOURIST SPOT BUT THE TOURIST IS BETTER SERVED BY LEAVING TOWN AND EXPLORING THE AREA'S PICTURESQUE LAKES ISLANDS AND MOUNTAINS WE HAD A LATE TEE TIME SO WE VISITED ROSS CASTLE HERE IN THE 1600S THE SUPERSTITIOUS CHIEFTAIN OF THE ROSS CLAN REFUSED TO FIGHT THE ENGLISH BECAUSE THEY ATTACKED FROM THE LAKE CROMWELL'S ARMY ALL BUT RUINED THE CASTLE BUT A METICULOUS RENOVATION HAS MADE IT A POPULAR ATTRACTION AFTER THE TOUR IT WAS TIME FOR MORE GOLF BECAUSE KILLARNEY IS INLAND THIS COURSE IS A BIT LESS RUGGED THAN THE OTHERS WE PLAYED ITS FAIRWAYS EVEN ALLOW A MODEST SLICE THE CHALLENGE COMES FROM TRYING TO STAY ON ITS SMALL GREENS WHICH SEEM AS IF THEY ARE ON PEDESTALS PROFESSIONAL TOURNAMENTS ARE OFTEN PLAYED AT KILLARNEY PICTURES OF IRISH OPEN WINNER NICK FALDO LINE THE CLUBHOUSE WALLS THAT NIGHT AND THE REST OF OUR NIGHTS IN IRELAND WE STAYED ON THE EDGE OF THE DINGLE PENINSULA AT BARROW HOUSE A GUEST HOUSE RECENTLY RENOVATED BY A COUPLE FROM FLORIDA THE COST INCLUDED A FULL IRISH BREAKFAST THAT LIVED UP TO ITS NAME EACH MORNING WE WERE PRESENTED WITH TRAYS FULL OF HAM BACON SALMON STEWED TOMATOES AND COOKED MUSHROOMS HOW THE IRISH EAT THIS WAY EVERY MORNING IS BEYOND ME I SETTLED FOR CEREAL BARROW HOUSE IS NEAR TRALEE THE GOVERNMENT SEAT OF COUNTY KERRY BEST KNOWN AS THE HOME OF THE ROSE OF TRALEE INTERNATIONAL FESTIVAL THAT SIXDAY CARNIVAL IN LATE SUMMER CULMINATES IN THE CROWNING OF THE ROSE THE MOST BEAUTIFUL WOMAN OF IRISH DESCENT WORLDWIDE TRALEE IS ALSO HOME TO SIAMSA TIRE THE IRISH NATIONAL FOLK THEATER IN NEARBY ARDFERT WE SAW AN ANCIENT UNRENOVATED MONASTERY THAT GIVES AN IDEA OF WHAT ROSS CASTLE MIGHT HAVE LOOKED LIKE AFTER THE ENGLISH FINISHED WITH IT FURTHER UP THE ROAD IS BALLYBUNION WHICH WAS OUR NEXT GOLFING DESTINATION BALLYBUNION IS WHERE THE SHANNON RIVER MEETS THE OCEAN A STRIKING SETTING FOR THE TOWN'S GOLF COURSES THE OLD COURSE IS WORLD RENOWNED AND THE NEW COURSE IS JUST AS CHALLENGING IRISH COURSES LIKE TO BOOST YOUR CONFIDENCE WITH AN EASY FRONT NINE THEN SLAM YOU WITH AN IMPOSSIBLE BACK THE BALLYBUNION OLD COURSE DID IT BETTER THAN ANY WE PLAYED RAIN KEPT US FROM PLAYING THE BACK NINE OF THE NEW COURSE BUT LOCALS TOLD US WE WERE BETTER OFF FOR IT THERE'S NO FAIRWAY LAD A REGULAR TOLD ME YOU HIT 200 YARDS STRAIGHT AS AN ARROW AND YOU'RE STILL IN THE ELEPHANT GRASS I WAS TOLD THIS IN THE GRILL ROOM AT BALLYBUNION'S EXQUISITE 4 MILLION CLUBHOUSE THE ONLY CLUBHOUSE I'VE EVER SEEN WITH AUTOMATIC DOORS ALL THOSE GOLFERS FROM SWEDEN GERMANY AND THE US I SAW PLAYING THAT DAY GAVE ME A GOOD SENSE OF WHO PAID FOR IT OUR FINAL COURSE WAS TRALEE DESIGNED BY ARNOLD PALMER THE OCEAN FIGURES IN MANY OF THE HOLES AS DO RUINS THE SCORECARD INFORMED US THAT THE CASTLE BEHIND THE GREEN ON NO 3 IS IN PLAY MEANING IF THE BALL ROLLS UP AGAINST IT YOU CAN'T MOVE IT WITHOUT TAKING A STROKE A MEMBER AT BALLYBUNION DESCRIBED TRALEE AS FLAT COMPARED WITH HIS COURSE BUT MANY OF THE FAIRWAYS AT TRALEE SLOPE INTO THE ROUGH AND ONE HOLE WAS ENTIRELY UPHILL THE TOTAL COST FOR MY TRIP CAME TO ABOUT 1500 WITH MOST OF THE MONEY GOING TOWARD THE FLIGHT FROM NEW YORK GOLF COSTS BETWEEN 35 AND 50 A ROUND MOST COURSES GIVE SIGNIFICANT DISCOUNTS FOR A SECOND ROUND PLAYED THE SAME DAY MR STEINMETZ IS A JOURNAL REPORTER IN NEW YORK COVERING MERGERS AND ACQUISITIONS 9404210078 940421 WHAT THE ANC REALLY STANDS FOR BY GEOFFREY WHEATCROFT WITH THE APPROACH OF THE FIRST UNIVERSALSUFFRAGE ELECTION ON APRIL 26 A GREAT DRAMA IS MOVING TOWARD ITS CLIMAX IN SOUTH AFRICA COMPREHENDING THAT DRAMA WON'T BE EASY IN ANY CASE IT HAS BEEN MADE HARDER BY MEDIA COVERAGE THAT TREATS DRAMA AS MELODRAMA PURE GOOD IS SUPPOSED TO TRIUMPH OVER PURE EVIL WITH A CAST OF HEROES NELSON MANDELA AND THE AFRICAN NATIONAL CONGRESS VILLAINS THE AFRIKANER RIGHT WING ALONG WITH MANGOSUTHU BUTHELEZI AND THE INKATHA FREEDOM PARTY AND A PENITENT SINNER FW DE KLERK PRESIDENT UNTIL THE END OF THE MONTH NOW THAT HE HAS AGREED AT THE LAST MINUTE TO TAKE PART IN THE ELECTIONS MR BUTHELEZI CHANGES ROLES TO BECOME ANOTHER PENITENT SINNER THOUGH IT WOULD BE WILDLY OPTIMISTIC TO THINK THAT THIS GUARANTEES A PEACEFUL ELECTION THE SOUTH AFRICAN STORY HAS BEEN A TRAGIC ONE IT IS NOW BEING COVERED IN THE SPIRIT OF EDITH WHARTON'S SAYING THAT WHAT THE AMERICAN PUBLIC WANTS IS TRAGEDY WITH A HAPPY ENDING THE DRAMA IS NOT AS SIMPLE AS THAT AND A HAPPY ENDING IS BY NO MEANS CERTAIN THE ANC WILL ALMOST CERTAINLY WIN A CLEAR VICTORY IN THE ELECTION WHICH LEAVES UNANSWERED THE QUESTION OF WHAT EXACTLY THE ANC STANDS FOR IT IS A LARGE AND RAMSHACKLE COALITION THAT HAS TURNED OUT TO HAVE A FEEBLE NATIONAL ORGANIZATION AND LITTLE CONTROL OVER ITS TOWNSHIP RADICALS BUT THE POLITICAL CHARACTER OF THE ANC'S LEADERSHIP IS NOT IN DOUBT IT IS CLOSELY LINKED TO THE SOUTH AFRICAN COMMUNIST PARTY THE SACP HAS RIGHTLY BEEN CALLED MINUSCULE AND ANTEDILUVIAN THIS IS THE PARTY THAT UNSWERVINGLY SUPPORTED THE SOVIET UNION OVER HUNGARY IN 1956 AND CZECHOSLOVAKIA IN 1968 AND WHOSE ORGAN OR FORUM FOR MARXISTLENINIST THOUGHT THE AFRICAN COMMUNIST LAST YEAR LAMENTED THE END OF EAST GERMANY NONE OF WHICH MIGHT MATTER IF THE SACP WIELDED NO MORE INFLUENCE THAN ITS MEMBERSHIP OF 40000 WOULD SUGGEST BUT IF AS IS RECKONED TWOTHIRDS OF THE ANC'S NATIONAL EXECUTIVE ARE SACP MEMBERS THE PICTURE CHANGES THE LARGE NUMBER OF COMMUNISTS RUNNING ON THE ANC LIST FOR THE ELECTION WILL GIVE THE SACP FAR MORE POWER IN THE NEW GOVERNMENT THAN IT WOULD HAVE IF IT RAN AS A SEPARATE PARTY AND THIS INFLUENCE CAN ONLY BE INCREASED BY THE FACT THAT MR MANDELA IS INCREASINGLY A FIGUREHEAD HE IS A MAN OF TRUE NOBILITY AND COURAGE AND A SINCERE DEMOCRAT BUT AT THE AGE OF 75 HIS POWERS ARE FAILING NO DOUBT MUCH OF THIS IS THE LEGACY OF THE YEARS OF WHITE SUPREMACY WHEN THE ANC BEGAN LIFE MORE THAN 80 YEARS AGO IT WAS MODERATE TO THE POINT OF UNCLETOMFOOLERY AND WAS RADICALIZED ONLY BY REJECTION EVEN SO IT WOULD SCARCELY BE A HAPPY ENDING IF SOUTH AFRICA TURNED TO COMMUNISM JUST AS NEARLY EVERY OTHER COUNTRY IN THE WORLD HAS FORSAKEN IT WHICH IS ONE REASON WHY THIS MAY NOT HAPPEN JOE SLOVO THE VETERAN WHITE LEADER OF THE SACP FINDS HIMSELF A COMMUNIST WITHOUT COMMUNISM IT IS AS IF AN ARDENT JESUIT MISSIONARY ABOUT TO CONVERT SOME FARFLUNG COUNTRY HEARD THAT THE POPE HAD DECLARED HIMSELF AN ATHEIST AND CLOSED DOWN THE CATHOLIC CHURCH THERE ARE MORE IMMEDIATE THREATS EVEN IF FREE AND FAIR ELECTIONS MANAGE TO BE HELD AND EVEN IF THE ANC WINS THAT DOESN'T NECESSARILY END THE STORY EXPERIENCE SUGGESTS THAT PARLIAMENTARY DEMOCRACY IS NOT A TRANSPLANT THAT TAKES ROOT EASILY IN AFRICA THE ALLTOOFAMILIAR PATTERN HAS BEEN ONE MAN ONE VOTE ONE TIME WHAT REALLY MATTERS IS NOT ANY ELECTORAL PROCESS SO MUCH AS THE SURVIVAL OF THE RULE OF LAW AND FREEDOM OF EXPRESSION FOR ALL APARTHEID'S SINS IT DID NOT QUITE EXTINGUISH THOSE NOW THEIR FUTURE IS DARKER PRESS FREEDOM IS VISIBLY UNDER THREAT ALREADY THERE IS A HIGH DEGREE OF SELFCENSORSHIP BY NEWSPAPERS AND THE STATEOWNED BROADCASTING COMPANY SABC WHICH USED TO BE A PREPOSTEROUS POODLE OF THE PRETORIA REGIME SEEMS TO BE TURNING INTO A DIFFERENT KIND OF POLITICAL PET HEADED BY A WOMAN WHO BOASTS OF HER ANC MEMBERSHIP FEW BELIEVE THAT THE SOWETAN THE OUTSTANDINGLY SUCCESSFUL BLACK NEWSPAPER WILL BE ANYTHING BUT ANOTHER ANC PARTY ORGAN A CONTROLLING THIRD SHARE IN THE ARGUS GROUP WHICH OWNS FIVE OF THE MOST IMPORTANT ENGLISHLANGUAGE PAPERS HAS JUST BEEN ACQUIRED BY TONY O'REILLY THE INTERNATIONAL BUSINESS MAGNATE WHO HAS FOR SOME TIME BEEN BUDDYING UP TO THE ANC THERE MAY BE SOMETHING TO BE SAID FOR AN UNDERSTANDING BETWEEN NATIONALIST POLITICIANS AND BIG BUSINESS EVEN FOR THE SOFTENING EFFECTS OF CORRUPTION BUT WHILE CORRUPTION ELSEWHERE IN AFRICA MAY HAVE TEMPERED THE HARSHNESS OF DESPOTISM IT HAS NOT GONE HAND IN HAND WITH PERSONAL FREEDOM OR ECONOMIC ADVANCE IT WILL BE A DISASTER NOT ONLY FOR SOUTH AFRICA ITSELF BUT ALSO FOR MANY NEIGHBORING COUNTRIES IF THE ECONOMY COLLAPSES WHETHER THROUGH POLITICAL CORRUPTION OR AN ATTEMPT TO IMPOSE DOCTRINAIRE STATE SOCIALISM OR SIMPLY BECAUSE THE NEW SOUTH AFRICA PROVES UNGOVERNABLE AS A UNITED CENTRALIZED STATE THIS LAST PHRASE IS CRITICAL FOR MANY YEARS THE ANC'S DEMAND WAS FOR ONE MAN ONE VOTE IN A UNITARY SOUTH AFRICA THIS IMPLIED REJECTION OF FEDERALISM NEEDS EXPLAINING THE ANC HAD BEEN PLAYING AND LOSING FOR SO LONG THAT ITS DESIRE AS IT WERE TO WIN THE WHOLE POT WAS NATURAL ENOUGH GRAND APARTHEID THE IDEA OF PARTITIONING THE COUNTRY INTO SOCALLED INDEPENDENT HOMELANDS SEEMINGLY DISCREDITED FEDERAL SCHEMES ALL THE SAME THE OBSESSION WITH A UNITARY STATE MUST BE WRONG ONLY A HUNDRED YEARS AGO SOUTH AFRICA WAS NO MORE THAN A GEOGRAPHICAL EXPRESSION A CONGERIES OF BOER REPUBLICS BRITISH COLONIES AND AFRICAN KINGDOMS ITS TRANSFORMATION INTO A SINGLE STATE IN THE WAKE OF THE BOER WAR WAS A MISTAKE WHICH ULTIMATELY MADE POSSIBLE THE APARTHEID REPUBLIC THE INSISTENCE THAT ANY DIFFERENCES BETWEEN BLACK PEOPLES IN SOUTH AFRICA HAVE BEEN ARTIFICIALLY CREATED BY WHITE RULERS OR SUPPOSED STOOGES LIKE MR BUTHELEZI IS ITSELF A DOCTRINAIRE FANTASY THERE MAY BE LITTLE MORE ETHNIC OR LINGUISTIC DIFFERENCE BETWEEN ZULU AND XHOSA THAN BETWEEN SERB AND CROAT BUT THEN THAT CHEERLESS COMPARISON SPEAKS FOR ITSELF AND SOUTH AFRICA IS UNIQUE IN THAT 10 MILLION OF ITS NEARLY 40 MILLION INHABITANTS ARE NONAFRICAN WHITES BOTH ENGLISHSPEAKING AND THE MORE NUMEROUS AFRIKANERS COLOREDS OR MIXEDRACE AND INDIANS THESE GROUPS CAN BE EITHER ACCOMMODATED IN THE NEW SOUTH AFRICA OR SUBJUGATED OR THEY CAN LEAVE ONE OF THE SECRET STORIES OF SOUTH AFRICA IN THE PAST FEW YEARS IS THAT THE IMPORTANT JEWISH COMMUNITY APPEARS TO HAVE DECLINED TO 75000 FROM 120000 THE IMPLICATIONS OF WHICH ARE AS OMINOUS AS THEY ARE OBVIOUS AT THE SAME TIME AND BY ANOTHER EXQUISITE IRONY SOME AFRIKANERS ARE TREKKING FURTHER NORTH TO SETTLE IN ZAMBIA AND MOZAMBIQUE COUNTRIES CHASTENED BY THE CONSEQUENCES OF THEIR OWN EARLIER ANTICOLONIAL RHETORIC AND EAGER FOR THE AGRICULTURAL EXPERTISE OF THE BOERS UNPOPULAR AS MR BUTHELEZI'S BULLYING AND EVEN UNBALANCED BEHAVIOR HAS MADE HIM HE IS OBJECTIVELY RIGHT TO OPPOSE THE ANC'S RIGID CENTRALISM WHAT SOUTH AFRICA NEEDS IS A LOOSE FEDERAL SYSTEM WITH GUARANTEES FOR MINORITIES OTHERWISE THE FUTURE COULD BE VERY BLEAK IT NEED NOT BE SOUTH AFRICA COULD EVEN BE A MODEL FOR THE REST OF AFRICA A GENUINELY MULTIRACIAL AND OPEN SOCIETY PROSPEROUS AND TOLERANT AT ONCE THAT WILL NEED LUCK IT WILL NEED THE CONTINUED PRESENCE OF THE WHITE POPULATION IT WILL NEED A MUCH HIGHER DEGREE OF POLITICAL DECENTRALIZATION THAN THE ANC PROMISES AND IT WILL NEED ON THE PART OF EVERYONE INCLUDING THE NEWS MEDIA OPTIMISM QUALIFIED BY REALISM MR WHEATCROFT WHO LIVES IN BATH ENGLAND IS THE AUTHOR OF THE RANDLORDS A HISTORY OF SOUTH AFRICA'S MINING MAGNATES 9404210077 940421 BOARD OF CONTRIBUTORS TOWARD AN ILLIBERAL TRADING SYSTEM BY PAUL W MCCRACKEN AS ANNOUNCED TUESDAY THE US TRADE DEFICIT WIDENED YET AGAIN IN FEBRUARY THIS IS CAUSE FOR CONCERN BUT IF DECISIONS ABOUT TRADE RELATIONSHIPS BETWEEN THE US AND JAPAN GET MADE WRONG THE MOMENTUM THAT FOR ALMOST A HALFCENTURY HAS BEEN MAKING FOR A GENERALLY MORE OPEN WORLD TRADING SYSTEM COULD BE SLOWED OR EVEN REVERSED ONCE REVERSED AS WE FOUND IN THE YEARS PRIOR TO WORLD WAR II A CUMULATIVE PROCESS OF TRADE DISINTEGRATION IS DIFFICULT TO HALT THE REMARKABLE THING IS THAT BOTH JAPAN AND THE US HAVE BEEN GETTING SOME GOOD ADVICE ABOUT WHAT NEEDS TO BE DONE THE PROBLEM IS THAT IN EACH CASE THE SOURCE OF THE GOOD ADVICE IS THE OTHER COUNTRY WITH EACH GOVERNMENT MORE INTERESTED IN TELLING THE OTHER WHAT TO DO THAN IN ACTING ON THE GOOD ADVICE COMING ITS OWN WAY JAPAN IS RIGHT THAT SMALLER BUDGET DEFICITS AND A HIGHER RATE OF SAVING WOULD GIVE THE US A MAJOR NUDGE IN THE DIRECTION OF REDUCED OVERALL TRADE DEFICITS SINCE JAPAN IS A MAJOR TRADING PARTNER A BIG CHUNK OF THE IMBALANCE IN US EXTERNAL PAYMENTS SHOWS UP IN AMERICA'S INTERNATIONAL TRANSACTIONS WITH JAPAN THE US TRADE AND CURRENT ACCOUNT DEFICITS BALLOONED IN THE 1980S AS BUDGET DEFICITS EXPLODED AS THE COMBINATION OF PRIVATE FINANCING AND THESE LARGE TREASURY BORROWING REQUIREMENTS BEGAN TO EXCEED THE FLOW OF DOMESTIC PRIVATE SAVINGS MORE FINANCING FROM ABROAD WAS REQUIRED WHICH CREATED FOREIGN DEMAND FOR DOLLARS TO BUY TREASURY SECURITIES WHICH INCREASED THE EXCHANGE RATE OF THE DOLLAR WHICH STIMULATED IMPORTS AND IMPEDED EXPORTS THIS WAS THE FINANCIAL PROCESS BY WHICH THE ECONOMY AND MARKETS ACCOMMODATED POLICIES THAT ALLOWED TOTAL DOMESTIC DEMAND FOR OUTPUT TO EXTEND BEYOND DOMESTIC PRODUCTION THE DIFFERENCE BEING COVERED BY NET IMPORTS THE PROBLEM IS NOT JUST THAT SOMETIME THESE BUDGETS AND THE FEDERAL DEBT MIGHT EXACT A TOLL THEY HAVE BEEN EXACTING A TOLL ALL ALONG AS THE 1980S OPENED US NET INVESTMENT INCOME FROM ABROAD WAS RUNNING SOMEWHAT OVER 1 OF GDP IF THAT RATIO HAD CONTINUED THE NET INCOME FROM ABROAD SUPPLEMENTING THE INCOME GENERATED BY THE ECONOMY AT HOME WOULD NOW BE 70 BILLION TO 75 BILLION PER YEAR LAST YEAR IT WAS IN FACT 2 BILLION TO 3 BILLION THIS DIFFERENCE IS THE INCOME PRICE AMERICANS ARE NOW PAYING EACH YEAR FOR POLICIES REQUIRING SUCH A HEAVY RELIANCE ON FOREIGN FUNDS TO COVER FINANCING REQUIREMENTS OF THE PRIVATE ECONOMY PLUS HEAVY TREASURY BORROWING STATING AMERICA'S FISCAL PROBLEM IS EASY DOING SOMETHING ABOUT IT IS MORE DIFFICULT CLEARLY JUST MORE REVENUE IS NO SOLUTION WE DOUBLED THE FEDERAL GOVERNMENT'S REVENUE IN THE 1960S CONSIDERABLY MORE THAN DOUBLED IT AGAIN IN THE 1970S AND ALMOST DOUBLED IT YET AGAIN AN INCREASE OF 995 IN THE 1980S YET THE DEFICIT ENDED THIS 30YEAR STRETCH AT 4 OF GDP COMPARED WITH A HAIRLINE SURPLUS IN 1960 DESPITE LAST YEAR'S INCREASES IN TAX RATES THE ADMINISTRATION'S OWN PROJECTIONS SHOW RISING FEDERAL DEFICITS AFTER THE FISCAL YEAR BEGINNING THIS OCTOBER WITH ANY REAL COMMITMENT TO A BALANCED BUDGET JETTISONED FISCAL PRUDENCE IS NOT APT TO BE REGAINED UNLESS CONSTITUTIONAL CONSTRAINTS ON SPENDING ARE IMPOSED THE US ALSO HAS SOME RELEVANT ADVICE FOR JAPAN JAPAN HAS FOUND IT DIFFICULT TO TAKE THE LARGER OUTWARDLOOKING VIEW OF ITS OWN ULTIMATE SELFINTEREST WHILE MANY COUNTRIES HAVE A LARGER VOLUME OF TRADE RELATIVE TO THEIR DOMESTIC ECONOMIES THAN IS TRUE FOR JAPAN JAPAN IS NOW THE WORLD'S THIRDLARGEST TRADING ECONOMY AFTER THE US AND GERMANY IT THEREFORE HAS A STAKE IN THE INCREASINGLY LIBERALIZED INTERNATIONAL ECONOMIC ORDER OF THE PAST FOUR OR FIVE DECADES AND JAPAN IS IMPOSING SOME STRESSES AND STRAINS THAT THE TRADING SYSTEM WOULD BE BETTER OFF WITHOUT YET JAPAN STILL SEEMS TO FIND IT DIFFICULT TO TAKE THE LARGER VIEW PERHAPS THIS DIFFICULTY HAS ROOTS DEEP IN JAPAN'S HISTORY AND CULTURE FORMER AMBASSADOR EDWIN REISCHAUER HAS OBSERVED EXTREME SELFCONSCIOUSNESS BRED OF ISOLATION HAS BEEN A HANDICAP IT HAS MADE THE JAPANESE SOMEWHAT TENSE IN THEIR CONTACTS WITH FOREIGNERS AND THEY HAVE SHOWN RELATIVELY LITTLE SENSITIVITY TO THE FEELINGS AND REACTIONS OF OTHER PEOPLES TO SOME EXTENT THIS INWARD ORIENTATION MEANS THAT BUYERS THINK IN TERMS OF HOMEPRODUCED PRODUCTS IGNORING FOR THE MOMENT SUCH THINGS AS HAMBURGERS AND BLUE JEANS THERE IS NO QUESTION THAT MANY AMERICAN BUSINESSES ENDEAVORING TO DEVELOP A MARKET IN JAPAN HAVE CONFRONTED A STONE WALL EVEN WHEN OBJECTIVE FACTORS PRICES QUALITY PRODUCT DESIGN WERE FAVORABLE THEIR PRODUCTS SUFFERED FROM NOT BEING JAPANESE JAPAN'S SENSE OF UNEASE IN THE INTERNATIONAL ARENA MAY HAVE PLAYED A ROLE IN ITS DOGGEDLY PURSUING POLICIES PRODUCING LARGE TRADE SURPLUSES AND HOLDINGS OF RESERVES THE PROBLEM WITH INSISTENTLY HANGING ON TO POLICIES PRODUCING SUCH LOPSIDED RESULTS IS THE DANGER THAT SOME TRADING PARTNERS WILL AT SOME POINT TAKE ABRUPT AND POSSIBLY NOT VERY WISE COUNTERACTION WE HAVE PROBABLY MOVED INTO THAT ZONE NOW WASHINGTON'S DEMAND FOR NUMERICAL GOALS FOR REDUCING THE TRADE IMBALANCE WAS NOT THE STUFF OF FORWARDLOOKING INTERNATIONAL ECONOMIC POLICY IT WAS HOWEVER UNDERSTANDABLE AND PROBABLY INEVITABLE GIVEN JAPAN'S LARGE AND PERSISTING TRADE SURPLUSES AND ITS FAILURE REALLY TO OPEN UP MORE FULLY AFTER IT HAD ARRIVED AS A BIGTIME PLAYER IN THE WORLD ECONOMY WASHINGTON'S DEMAND WAS TO REPEAT ALSO NOT VERY WISE POLICY JAPAN WOULD HAVE TO STRENGTHEN FURTHER THE REACH AND GRIP OF ITS BUREAUCRACY FOR THE ECONOMY TO MEET SUCH TARGETS THIS WOULD NOT CONTRIBUTE TO A LIBERAL INTERNATIONAL OR DOMESTIC ECONOMIC ORDER AND IT WOULD MAKE TOKYO'S GOVERNMENT EVEN MORE IRRELEVANT TO THE REALITIES OF GOVERNANCE THAN IT HAS BEEN IN RECENT YEARS INDEED WASHINGTON WOULD THEN FIND ITSELF DEALING WITH AN EVEN MORE INTRACTABLE TOKYO THAN THE ONE IT DEALS WITH TODAY DEVELOPMENTS IN THE MONTHS AHEAD WILL TELL US A GREAT DEAL ABOUT THE CAPABILITY OF THESE TWO GOVERNMENTS TO GET THEIR POLICIES HEADED IN MORE RESPONSIBLE DIRECTIONS BOTH HAVE MUCH TO ACCOMPLISH FOR WASHINGTON THE BASIC REQUIREMENT IS ACTION TO STRENGTHEN THE BUDGET YET FURTHER SINCE YET ANOTHER MAJOR TAX INCREASE IS NOT APT TO BE IN THE POLITICAL CARDS AND IN ANY CASE ITS INCREMENT OF REVENUE WOULD BE DISAPPOINTING THE NEXT PHASE MUST BE TO IMPOSE STRONGER DISCIPLINES ON FEDERAL SPENDING WHICH EXCLUDING DEFENSE IS STILL RISING AT THE RATE OF WELL OVER 6 PER YEAR AND TOKYO SHOULD KEEP ASKING WASHINGTON TO SHOW A CREDIBLE STRATEGY FOR GETTING CONTROL OF THIS SPENDING PROBLEM JAPAN'S HALF OF THE PROBLEM MAY BE EVEN MORE DIFFICULT SOME OF THE MAJOR STRAINS ON THE INTERNATIONAL TRADING SYSTEM HAVE THEIR ROOTS IN JAPAN'S SINGLEMINDED DEDICATION TO ACHIEVING AN EVERSTRONGER TRADE POSITION IGNORING THE BUILDING PRESSURES THIS STRATEGY HAS BEEN CAUSING ELSEWHERE IF IT DOES NOT ACCELERATE THE PROCESS OF RELIEVING THE STRAINS IT IS IMPOSING THERE WILL BE AN INEXORABLE ACCELERATION TOWARD QUOTAS DEALS TARGETS AND OTHER ACCOUTERMENTS OF AN ILLIBERAL TRADING ORDER MR MCCRACKEN A FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS IS A UNIVERSITY OF MICHIGAN PROFESSOR EMERITUS 9404210076 940421 REGULATORS PROPOSE DIRECT COMPETITION FOR PROVIDING ELECTRICITY IN CALIFORNIA BY ANDY PASZTOR AND DAVE KANSAS STAFF REPORTERS OF THE WALL STREET JOURNAL IN WHAT IS LIKELY TO BECOME A BENCHMARK FOR ELECTRIC DEREGULATION NATIONWIDE CALIFORNIA REGULATORS PROPOSED TO SET UP HEADTOHEAD COMPETITION BETWEEN UTILITIES AND INDEPENDENT POWER PRODUCERS THROUGHOUT THE STATE THE PROPOSALS ANNOUNCED BY THE CALIFORNIA PUBLIC UTILITIES COMMISSION YESTERDAY CAPPING A YEARLONG STUDY CLOSELY WATCHED BY UTILITY INDUSTRY OFFICIALS HERE AND ACROSS THE COUNTRY CALL FOR A SWEEPING OVERHAUL OF THE MARKETING OF POWER AND HOW RATES ARE SET FOR BOTH INDUSTRIAL AND RESIDENTIAL CUSTOMERS WHILE PORTIONS OF THE PACKAGE INTENDED TO ESTABLISH A SIMPLIFIED PERFORMANCEBASED RATEMAKING SYSTEM HAVE BEEN STRONGLY SUPPORTED BY THE STATE'S THREE LARGEST INVESTOROWNED UTILITIES OTHERS COULD PROMPT CRITICISM FROM PARTS OF THE INDUSTRY CURRENTLY MOST ELECTRIC USERS HAVE NO CHOICE BUT TO BUY POWER FROM THEIR LOCAL UTILITY THE COMMISSION EVENTUALLY WANTS TO GIVE USERS THE CHOICE OF BUYING POWER FROM ANY SOURCE THEY WISH WHILE ENSURING THAT UTILITIES WILL TRANSMIT THAT POWER IF THE CHANGES GO INTO EFFECT AS PLANNED IN LESS THAN TWO YEARS THE STATE'S LARGEST ELECTRIC USERS WILL BE ABLE TO TAP INDEPENDENT POWER SOURCES PRACTICALLY WITHOUT CONSTRAINTS BY 2002 ALL ELECTRIC POWER USERS INCLUDING HOMEOWNERS WILL HAVE THE SAME CHOICE OF SUPPLIERS THE LIKELY RESULT ACCORDING TO ANALYSTS WILL BE TO REDUCE OVERALL RATES ACCELERATE THE SHIFT OF INDUSTRIAL CUSTOMERS TO NONUTILITY POWER SOURCES AND GENERALLY REDUCE UTILITY REVENUES CALIFORNIA'S DECISION WILL LIKELY BE FELT THROUGHOUT THE COUNTRY AT LEAST 12 STATES ARE CONTEMPLATING SOME FORM OF RETAIL WHEELING OR DIRECT ACCESS AND MICHIGAN ANNOUNCED PLANS FOR A RETAIL WHEELING EXPERIMENT EARLIER THIS MONTH CALIFORNIA IS CONSIDERED BY MOST REGULATORS IN THE COUNTRY TO BE ONE OF THE LEADING STATES IN TERMS OF INITIATING CHANGES IN THE WAY THE INDUSTRY IS REGULATED OR IN THIS CASE DEREGULATED SAID BARRY ABRAMSON UTILITIES ANALYST FOR PRUDENTIAL SECURITIES THE PROPOSALS AREN'T EXPECTED TO BECOME FINAL UNTIL AUGUST SETTING THE STAGE FOR SEVERAL MONTHS OF INTENSE LOBBYING AND ARGUMENTS AMONG INTEREST GROUPS IN APPROVING THE PROPOSALS THE COMMISSION SAID IT IS SEEKING A MEASURED APPROACH THAT ENVISIONS FLOORS AND CEILINGS FOR UTILITY EARNINGS DURING THE TRANSITION PERIOD WHILE PREVENTING RESIDENTIAL CUSTOMERS FROM SHOULDERING AN EXCESSIVE SHARE OF COSTS IN MAKING THE DECISION THE COMMISSION SAID THAT PRICES FOR ELECTRIC SERVICE IN CALIFORNIA ARE SIMPLY TOO HIGH THE NATIONAL ENERGY POLICY ACT OF 1992 FORBADE FEDERAL REGULATORS FROM ORDERING INTERSTATE RETAIL WHEELING LEAVING THE ISSUE LARGELY TO THE STATES THUS CALIFORNIA'S MOVE BECOMES A CRUCIAL STEP ON THE ROAD TO WIDER DEREGULATION OF THE INDUSTRY MOST ELECTRIC UTILITIES ALONG WITH SEVERAL ENVIRONMENTAL GROUPS THAT FEAR WIDER COMPETITION WILL SAP CONSERVATION EFFORTS HAVE VOICED OPPOSITION TO RETAIL WHEELING FOR MAJOR UTILITIES WHICH ALREADY HAVE BEEN FORCED TO REDUCE RATES TO TRY TO KEEP PRIME INDUSTRIAL CUSTOMERS IN CALIFORNIA AND ELSEWHERE THE PROPOSALS REPRESENT A TWOEDGED SWORD THEY STAND TO GAIN MORE FLEXIBILITY TO CONTRACT FOR POWER AND SEEK NEW CUSTOMERS IN SURROUNDING STATES BUT AT THE SAME TIME THEY PROBABLY WILL HAVE TO OFFER GREATER INCENTIVES TO RETAIN CURRENT LARGE AND MEDIUMSIZE ELECTRIC USERS RECOGNIZING THAT SOME VERSION OF THE REFORM PROPOSAL IS INEVITABLE JOHN BRYSON CHAIRMAN OF SCECORP SAID THE COMMISSION'S LONGTERM GOAL IS SOUND AND DESIRABLE THE PROPOSALS ENVISION COMPANIES LIKE OURS CONTINUING TO BE IN A POSITION TO COMPETE IN A DEREGULATED ENVIRONMENT HE SAID ADDING THAT OUR FIRST READING ON THIS IS POSITIVE BUT MR BRYSON NOTED THAT DETAILS STILL TO BE WORKED OUT WILL BE ABSOLUTELY CRUCIAL 9404210075 940421 STILL COMRADES CHINESE ENTREPRENEURS REVIVE TIES FORGED IN CULTURAL REVOLUTION NETWORKS OF OLD RED GUARDS HELP BUILD AN ECONOMY FAR FROM MAO'S VISION CAN'T LIVE WITHOUT MONEY' BY KATHY CHEN AND MARCUS W BRAUCHLI STAFF REPORTERS OF THE WALL STREET JOURNAL BEIJING CLIQUES FORMED A GENERATION AGO IN THE CHAOS OF CHINA'S CULTURAL REVOLUTION HAVE EVOLVED INTO BUSINESS NETWORKS OF FORMER RED GUARDS WHO ARE THRIVING IN THE CHAOS OF CAPITALISM TWENTYFIVE YEARS AGO RED GUARD MEMBERS YANG YANG AND CHENG BINGHAI RESERVED THEIR MOST VITRIOLIC INVECTIVE FOR CAPITALIST ROADERS TODAY THE MEN TRAVEL THE CAPITALIST ROAD THEMSELVES MR YANG AS EXECUTIVE VICE PRESIDENT OF A BEIJING HEADHUNTING FIRM AND MR CHENG AS HEAD OF A SHANGHAI COMPANY INVOLVED IN TOURISM FOOD PRODUCTION AND RETAILING AND MANY OF THEIR BUSINESS CONTACTS OF TODAY ARE THEIR REVOLUTIONARY COMRADES OF YESTERYEAR ONE IS 46YEAROLD LIU YUANZHOU WHO WENT TO THE SAME SHANGHAI HIGH SCHOOL AND HEADED A RED GUARD GROUP THERE MR LIU WHO NOW RUNS A HOTEL A QUARRY AND A JUICE FACTORY IN THE SOUTHERN PROVINCE OF HAINAN HAS PROVIDED VALUABLE CONTACTS AND TIPS ABOUT FREEWHEELING HAINAN TO HIS OLD COMRADES WHEN MR YANG WANTED TO OPEN A BRANCH OF HIS COMPANY IN HAINAN MR LIU PROVIDED AN OFFICE MR LIU SCOUTS PROJECTS IN THE ISLAND PROVINCE FOR MR CHENG'S COMPANY MESSRS LIU AND YANG ARE ORGANIZING STUDY TOURS TO THE US FOR HEADS OF CHINESE RURAL ENTERPRISES WHILE MESSRS YANG AND CHENG ARE TEAMING UP ON A BEVERAGE PRODUCTION VENTURE WE DON'T NECESSARILY TALK POLITICS OR THE CULTURAL REVOLUTION SAYS MR YANG WHO IS 43 BUT WE FEEL WE UNDERSTAND EACH OTHER WE WENT THROUGH THE SAME HARDSHIPS THESE BUSINESSMEN HAVE COME A LONG WAY FROM THEIR DAYS AS IDEOLOGICAL STORM TROOPERS FOR MAO TSETUNG'S GREAT PROLETARIAT CULTURAL REVOLUTION THE IDEALISTIC FERVOR OF THAT ERA IS SOMETHING WE WANT TO KEEP IN OUR HEARTS SAYS 47YEAROLD LAO YUANYI A FORMER RED GUARD LEADER BUT I KNOW NOW THAT IT ISN'T ENOUGH YOU CAN'T LIVE WITHOUT MONEY HE IS NOW AN EXECUTIVE OF A BEIJING VENTURECAPITAL FUND MONEY WAS ANATHEMA WHEN MAO LAUNCHED THE CULTURAL REVOLUTION IN THE SUMMER OF 1966 TO PURGE HIS ENEMIES IN THE COMMUNIST PARTY INSPIRED BY HIS CALLS TO OPPOSE THE FOUR OLDS OLD IDEAS OLD CULTURE OLD CUSTOMS AND OLD HABITS MILLIONS OF YOUTHS LEFT SCHOOL AND TOOK TO THE STREETS AS RED GUARDS OFTEN TREATING THEIR ELDERS TO PUBLIC HUMILIATION OR WORSE THE MOVEMENT DEGENERATED INTO A DECADE OF VIOLENT FACTIONAL FIGHTING THAT SHATTERED MILLIONS OF LIVES AND ULTIMATELY REACHED CHINA'S LEADERSHIP SOME CHINESE THINK THE TRAUMA OF THAT ERA PAVED THE WAY FOR THE ECONOMIC LIBERALIZATION THAT ENSUED WITHOUT THE CULTURAL REVOLUTION THERE WOULD BE NO OPEN DOOR NO DENG XIAOPING REFORMS CONTENDS DAI QING A 53YEAROLD DISSIDENT WRITER NOW LIVING IN NEW YORK IT SHOCKED CHINA INTO CHANGING MR DENG HIMSELF WAS PERSECUTED BY THE RED GUARDS BUT SINCE HE SET OFF CHINA'S ECONOMIC REFORMS IN 1978 MANY REVOLUTIONARIES HAVE TRADED THEIR SLOGANS AND ARMBANDS FOR DESIGNER CLOTHES AND CELLULAR PHONES THEY ARE MAKING MONEY INSTEAD OF MAYHEM WANG SHI WHO BURNED BOOKS IN MAO'S NAME AS A 16YEAROLD RUNS A PROPERTYDEVELOPMENT FIRM IN THE SHENZHEN SPECIAL ECONOMIC ZONE NEAR HONG KONG LIU JUFEN WHO HELPED FORM AN ESPECIALLY FIERY RED GUARD GROUP IN 1966 WENT ON WITH HER COMRADES TO START A SUCCESSFUL COMPUTER COMPANY IN BEIJING IN THE 1980S WU XIAOLING A RED GUARD AT A BEIJING GIRLS' SCHOOL HEADS A DEPARTMENT OF CHINA'S CENTRAL BANK HER BOSS CHEN YUAN ALSO WAS A RED GUARD CHERRY LI EVEN WALL STREET FIRMS ARE HIRING THEM GOLDMAN SACHS & CO RECENTLY TOOK ON LI QINGYUAN WHOSE NAME STILL RESONATES WITH RADICALISM AMONG OTHER FORMER RED GUARDS AT GOLDMAN'S HONG KONG OFFICE SHE IS KNOWN TO HER AMERICAN COLLEAGUES AS CHERRY LI THE FORMER RED GUARDS' ABILITY TO SURF HISTORY'S WAVES IS NO MERE IRONY THE LEADERS OF YESTERYEAR'S RADICAL YOUTH ARMIES OFTEN WERE PRINCELINGS CHILDREN OF HIGHRANKING CADRES WHO SHAMELESSLY USED THEIR CONNECTIONS TO GRAB RED GUARD LEADERSHIP POSITIONS TODAY SOME USE THOSE SAME CONNECTIONS TO VAULT TO POWER IN BUSINESS WHILE SOME FROM THIS GENERATION CAREFULLY SEPARATE THEIR OLD AND NEW LIVES FORMER ALLIES AND ENEMIES INCREASINGLY ALIKE FIND THEMSELVES MOVING IN THE SAME CIRCLES OF ECONOMIC POWER SOME CRITICS SEE THE COMMERCIAL SUCCESSES OF EXREVOLUTIONARIES AS EVIDENCE THAT CHINA REMAINS AN OLIGARCHY NO MATTER THE POLITICAL CLIMATE THEY SAY THE SAME PEOPLE STAY ON TOP NOW THEY ARE USING ECONOMIC REFORMS TO TRANSFORM THEMSELVES FROM A SPECIALPRIVILEGE CLASS TO A NEW POWER CLASS COMPLAINS DAVID DAI A SOCIOLOGIST AT A RESEARCH INSTITUTE IN BEIJING AS A YOUTH MR DAI WAS BEATEN UP BY RED GUARD FACTIONS THAT OPPOSED HIS OWN TO THOSE WHO WEREN'T MEMBERS OF POWERFUL RED GUARD FACTIONS THE ASCENDANCE OF THESE PEOPLE RANKLES IN SICHUAN PROVINCE 40YEAROLD TANG CHAOMING HAS SET UP A TRADING COMPANY THAT TRIES TO HIRE ONLY VICTIMS OF IDEOLOGICAL PERSECUTION IN EFFECT A NETWORK OF PEOPLE WHO WEREN'T SUCCESSFUL RED GUARDS ACCORDING TO THE CHINA DAILY A SEMIOFFICIAL NEWSPAPER MOST OF HIS EMPLOYEES ARE SOCALLED EDUCATED YOUTH STUDENTS WHO WERE FORCED TO WORK IN THE COUNTRYSIDE BECAUSE OF THEIR CLASS BACKGROUNDS BUT A POWERFUL LINK EXISTS AMONG SOME FORMER RED GUARD LEADERS TOO THIS NETWORKING IS BEST EXEMPLIFIED BY THE ALUMNI OF BEIJING'S ELITE NO 8 MIDDLE SCHOOL BACK IN 1966 THEY FORMED A RED GUARD FACTION AND THEN RAN WILD SHUTTERING THE DOORS OF CHINA'S NINE NONCOMMUNIST POLITICAL PARTIES RECALLS JI SANMENG OUR COURAGE REACHED TO THE SKIES SAYS MR JI WHO NOW WRITES FOR A FINANCIAL NEWSPAPER AND HEADS A FILM COMPANY WHICH COPRODUCES A BUSINESS TELEVISION PROGRAM THAT DOW JONES & CO PUBLISHER OF THIS NEWSPAPER ONCE HELPED SPONSOR THESE DAYS THEIR INTERESTS ARE STRICTLY FINANCIAL IN 1988 MR JI AND SOME FORMER RED GUARD COMRADES SET UP THE THREE OLD CLASSES ALUMNI ASSOCIATION FOR MEMBERS OF THE CLASSES OF 1966 1967 AND 1968 OF THE NO 8 MIDDLE SCHOOL ITS INFLUENTIAL MEMBERS INCLUDE THE NO 2 PERSON AT THE BANK OF CHINA A POLICY ADVISER TO CHINESE PREMIER LI PENG AND BEIJING'S DEPUTY COMMUNIST PARTY SECRETARY THE ASSOCIATION'S BOARD MEETS FREQUENTLY AND ONCE A YEAR ALL ALUMNI ARE INVITED TO GATHER IN THE NO 8 MIDDLE SCHOOL TO SIP TEA CRACK WATERMELON SEEDS AND CATCH UP SELDOM DOES TALK CENTER ON THE PAST OR POLITICS THOUGH INSTEAD THEY EXCHANGE INFORMATION ABOUT INVESTMENT OPPORTUNITIES AND ECONOMIC POLICIES AMONG FORMER STUDENTS THERE'S NOTHING THAT CAN'T BE SAID OBSERVES MR JI NOW 44 THIS WAY WE DON'T HAVE TO GO THROUGH FORMAL CHANNELS TO GET INFORMATION AT ONE MEETING MR JI INTRODUCED A RED GUARD ALUMNUS WORKING IN THAILAND TO ANOTHER IN CHINA WHO WANTED TO IMPORT SHRIMP HE ALSO CALLED ON THE RED GUARD NETWORK TO HELP A FORMER CLASSMATE GET A 500000 LOAN FOR A CABLETV STATION A WHO'S WHO OF FORMER NO 8 MIDDLE SCHOOL RED GUARDS LISTING THEIR JOBS AND BACKGROUNDS HELPS PROMOTE SUCH CONTACTS NOT ALL NETWORKS ARE SO ORGANIZED IN 1967 LIU JUFEN LEFT HER ENGINEERING COURSE AT BEIJING'S PRESTIGIOUS QINGHUA UNIVERSITY TO JOIN THE CULTURAL REVOLUTION HER COMRADES WERE SOME OF THE ERA'S FIERIEST ORATORS AMONG THEM THE CHILDREN OF TOP CHINESE MILITARY OFFICIALS TODAY THE 49YEAROLD MS LIU AND SOME OLD COMRADES RUN BEIJING STONE COMPUTER GROUP CHINA'S FIRST INDEPENDENT COMPUTER MAKER MANY BIG BUYERS ARE FORMER RED GUARDS INCLUDING SOME IN THE MILITARY THOUGH MS LIU EMPHASIZES SHE DOESN'T RELY ON RED GUARD CONTACTS IN BUSINESS SIMILARLY PETER ZHAO AND HIS RED GUARD GROUP FROM BEIJING'S ELITE YU CAI HIGH SCHOOL SPENT 1967 MARCHING BEATING UP CAPITALISTS AND RANSACKING THEIR HOMES YEARS LATER WHEN MR ZHAO DECIDED TO GO INTO BUSINESS HE APPROACHED HIS OLD COMRADES NOW FOUR OF THEM WORK IN MR ZHAO'S BUSINESSES WHICH INCLUDE A FACTORY THAT MAKES BOILER EQUIPMENT AND ANOTHER THAT MAKES BURGLAR ALARMS RECENTLY THEY GATHERED FOR A NIGHT OF NOSTALGIA AT BEIJING'S BLACK EARTH THEME RESTAURANT WHICH TRIES TO RECAPTURE LIFE IN CHINA'S REMOTE NORTHEAST THROUGH PHOTO DISPLAYS OF STUDENT BRIGADES HARVESTING IN THE FIELDS MANY RED GUARDS VOLUNTARILY SPENT YEARS IN THE REGION WORKING WITH FARMERS MR ZHAO 42 SAYS RELIVING THE PAST IS PART OF DOING BUSINESS BUT HE ADDS WE MOSTLY TALK ABOUT HOW TO MAKE MORE MONEY THOUGH THESE NETWORKS LONG AGO JETTISONED THE VICIOUSNESS OF THE CULTURAL REVOLUTION FEW DECRY THE ERA WE WERE VERY NAIVE AT THAT TIME SAYS MS LIU BUT WE WERE IN PURSUIT OF A WAY TO MAKE OUR COUNTRY BETTER WE STILL ARE MR LAO THE VENTURECAPITALFUND EXECUTIVE BELIEVES HIS 1960S ACTIVITIES HAVE GIVEN HIM VISIBILITY AT SHANGHAI'S FUDAN UNIVERSITY IN JANUARY 1967 MR LAO SPEARHEADED A STUDENT CAMPAIGN AGAINST A GROUP OF LEADERS IN BEIJING WHO WERE BACKING THE RADICAL RED GUARD FACTION FOR HIS EFFORTS HE WAS SENT TO A LABOR CAMP FOR FOUR YEARS ALTHOUGH MR LAO SEPARATES OLD FRIENDS FROM HIS NEW LIFE PEOPLE MY AGE ALL KNOW ME HE SAYS IT'S POSSIBLE THEIR ROUGH EXPERIENCES ULTIMATELY PROVED VALUABLE TO THE FORMER ACTIVISTS TO GET TO THE TOP OF A RED GUARD GROUP YOU HAD TO BE VERY TOUGH VERY AGGRESSIVE VERY PERSUASIVE SAYS RODERICK MACFARQUHAR A HARVARD UNIVERSITY PROFESSOR WHO HAS STUDIED THE CULTURAL REVOLUTION THOSE ARE USEFUL ATTRIBUTES IN BUSINESS FORMER RED GUARDS ARE TOUGH THEY HAVE WAYS TO GET THINGS DONE AGREES MR YANG OF THE BEIJING HEADHUNTING CONCERN THOSE PEOPLE WHO ARE FORTYSOMETHING WITH TALENT AND OPPORTUNITY ARE ALL NOW IN POSITIONS OF POWER WANG LI A MANAGER AT STATEOWNED CITIC INDUSTRIAL BANK IN BEIJING SAYS MY OLD EXPERIENCES HELPED A LOT I'M NOT AFRAID OF THINGS OR OF DEALING WITH FAILURE AS A TEENAGE RED GUARD SOLDIER FIGHTING FLOODS NEAR THE VIETNAM BORDER SHE HOISTED HEAVY BAGS OF CEMENT DUG BOMB SHELTERS AND RAISED HER OWN FOOD LAST YEAR AS A FOREIGNEXCHANGE DEALER THE 39YEAROLD MS LI EARNED THE EQUIVALENT OF SEVERAL MILLION DOLLARS IN PROFIT FOR THE BANK BUT HER MEMORIES OF RED GUARD ATTACKS ON HER FATHER IN THE 1960S LEFT SCARS I WOULDN'T EVER WORK WITH THESE PEOPLE SHE SAYS OF THESE FORMER RED GUARDS SOME OF THE CURRENT CAPITALISTROADERS LOOK BACK WITH MIXED FEELINGS YOU FEEL YOU'VE LOST A LOT OF TIME SAYS LIU ERHFEI A POLISHED 35YEAROLD WHO NEVER FINISHED HIGH SCHOOL AND SPENT NEARLY SIX YEARS LIVING IN RURAL CHINA DURING THE CULTURAL REVOLUTION BUT THE EXPERIENCE BUILDS YOUR CHARACTER HE SAYS I FEEL IF I CAN GO TO THE COUNTRYSIDE AND ESCAPE UNSCATHED I CAN GO THROUGH ANYTHING ONE OF HIS TEACHERS IN BEIJING WAS MS LI THE GOLDMAN SACHS EXECUTIVE AND FORMER RADICAL MR LIU EVENTUALLY WON A SCHOLARSHIP TO BOSTON'S BRANDEIS UNIVERSITY AND LATER EARNED A MASTER'S IN BUSINESS FROM HARVARD DURING THAT TIME HE WAS A MEMBER OF THE CHINESE BUSINESS ASSOCIATION A US NETWORK THAT INCLUDES MANY YOUNG CHINESE WHO ROSE FROM THE ASHES OF THE CULTURAL REVOLUTION NOW AS COHEAD OF SMITH BARNEY ASIA INC HE IS ONE OF HONG KONG'S HIGHESTPAID INVESTMENT BANKERS WHILE THE SHARED EXPERIENCE OF THE CULTURAL REVOLUTION BINDS TOGETHER MANY CHINESE IN BUSINESS IT ALSO FOSTERED A STREAK OF WAYWARDNESS NIHILISM AND DISTRUST WE LEARNED TO DO WHAT WE WANT NOT TO LISTEN TO OTHER PEOPLE THAN OURSELVES SAYS 38YEAROLD RALPH MA A BEIJINGBASED MEDIA ENTREPRENEUR AND FORMER RED GUARD IN HIS VIEW THE LEGACY OF THE CULTURAL REVOLUTION HAS MADE CHINA MORE DIFFICULT TO GOVERN PEOPLE DON'T TRUST THE SYSTEM HE SAYS THAT DISTRUST HAS IMPLICATIONS FOR THE GOVERNMENT SUGGESTS HARVARD'S PROF MACFARQUHAR PEOPLE HAVE A HABIT OF AUTONOMOUS ACTION HE SAYS THEY KNOW WHAT IT'S LIKE TO TAKE DECISIONS IN CRISES THE AUTHORITY OF THE STATE IS NO LONGER UNQUESTIONED 9404210074 940421 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO THE GREEN GRASS OF HOME AND RECYCLING LAWS SPARK LAWNEQUIPMENT SALES MORE LOCAL CURBS ON DISPOSAL OF GRASS CLIPPINGS SPUR SALES OF MULCHING MOWERS PETER MCCLOSKEY OF STROSNIDERS HARDWARE STORE IN THE DC AREA SAYS WE'VE SEEN ABOUT A 30 INCREASE IN SALES OF THE MOWERS WHILE LAWN GEAR OVERALL IS UP 5 TO 10 SEARS REPORTS DOUBLEDIGIT GAINS HELPED BY PENTUP DEMAND AND STRONG HOUSING STARTS BUT IN HYDE PARK MASS CENTRAL PAINT & HARDWARE POSTS SOSO SALES BLAMING THIS WINTER'S SNOWREMOVAL COSTS FOR DEPLETING HOMEOWNERS' BUDGETS MEANWHILE UPTODATE TOOLS BEAR A STRONG ECOLOGICAL STAMP ON APRIL 30 THE EPA WILL PROPOSE CUTS IN EXHAUST EMISSIONS OF GASPOWERED LAWN EQUIPMENT LIKELY FOR 1996 RYOBI NORTH AMERICA JUST LAUNCHED A CLEANERRUNNING GRASS TRIMMER THAT IT SAYS WOULD MEET EPA LEVELS CORDLESS ELECTRIC MOWERS FROM RYOBI AND BLACK & DECKER GET MIXED REVIEWS SEARS POSTS FAIR SALES BUT STROSNIDERS SEES A 60 RISE IN BUSINESS REAL GOODS TRADING UKIAH CALIF JUST STARTED SELLING THE SOLAR TURTLE A 2000 ROBOTIC SOLARPOWERED MOWER AWASH IN OLD MONEY FED BANKS SEEK NEW USES FOR SHREDDED NOTES FACING HIGHER DISPOSAL COSTS AS NEARBY DUMPS FILL UP THE FEDERAL RESERVE BANK OF LOS ANGELES LOOKS FOR FIRMS WITH NOVEL USES FOR THE 185 TONS OF BILLS IT SHREDS A YEAR TERRA ROOFING PRODUCTS FONTANA CALIF TESTS THE SHREDDED BILLS CALLED RESIDUE IN ROOFING SHINGLES MADE OF RECYCLED PAPER GRIDCORE SYSTEMS CARLSBAD CALIF TRIES IT IN MOLDED FIBERBOARD PANELS MADE INTO STAGE SETS TRADESHOW DISPLAYS AND SUCH NOT ALL FED BANKS FEEL PRESSURE TO CUT LANDFILL USE BUT RESIDUE VOLUME IS GROWING ABOUT 5 A YEAR SAYS JAMES REESE OF THE FEDERAL RESERVE BANK OF RICHMOND THE FED BANKS SHRED ABOUT SEVEN BILLION BILLS A YEAR OR 7000 TONS CEMTECH LP IS CLOSE TO SIGNING A CONTRACT TO USE RICHMOND'S RESIDUE IN FUEL PELLETS WHICH FIRE UP BOILERS MEANWHILE IN LITHUANIA ABOUT 30 TONS OF ITS OLD CURRENCY CALLED TALONAS HAVE RETURNED TO CIRCULATION AS TOILET PAPER PREPARING FOR THE ELECTRONIC HIGHWAY FURNITURE STORES GO HIGH TECH FURNITURE RETAILERS ARE TIPTOEING INTO HIGHEND ELECTRONICS LIKE GIANTSCREEN TVS AND SURROUNDSOUND STEREOS WHICH THEY SELL WITH SPECIALLY DESIGNED WALL UNITS THE HIGHTECH GEAR CERTAINLY HELPS SELL THE WALL UNITS AND UPHOLSTERED FURNITURE SAYS RAY PLUMMER OF ART VAN FURNITURE DETROIT THE FIRM TESTED 3000 TO 10000 HOME THEATER PACKAGES AT FOUR STORES THIS MONTH IT WILL HAVE THEM IN 22 OUTLETS IN ST PAUL MINN SLUMBERLAND SELLS TVS WITH SCREENS AS BIG AS 60 INCHES AS WELL AS FURNITURE WE CARRY THEM TO SHOW HOW THEY LOOK WITH OUR UNITS SAYS THE FIRM'S KEN LARSON THE STORES' SPARSE ELECTRONICS EXPERTISE MAKES JOSHUA HARRIS OF JUPITER COMMUNICATIONS A NEW YORK RESEARCH FIRM SKEPTICAL ABOUT THE VENTURES BUT ATTEMPTS TO SEAMLESSLY INTEGRATE FURNITURE AND TECHNOLOGY WILL HELP BROADEN CONSUMER ACCEPTANCE OF HIGHTECH ELECTRONICS IN THEIR HOME HE SAYS SO FAR SALES OF HOMETHEATER FURNITURE TOTAL 200 MILLION A YEAR SAYS AMERICA'S RESEARCH GROUP IN SOUTH CAROLINA JUST THE PILL' IS NOT ENOUGH SAY TWO MAJOR ORALCONTRACEPTIVE MAKERS AS THEY SEPARATELY LAUNCH EDUCATIONAL KITS THAT ALSO CONTAIN CONDOMS THE KITS FROM ORTHO PHARMACEUTICAL AND WYETHAYERST WERE MADE TO HELP HEALTHCARE PROVIDERS COUNSEL ABOUT SEXUALLY TRANSMITTED DISEASES A SOLO ACT SOUTH DAKOTA OFFERS BANKS AND MINING COMPANIES A TAX BREAK TO FINANCE THE STATE'S VENTURE CAPITALISTS WHICH NUMBER ONE DAKOTA VENTURES RAPID CITY HOPES TO RAISE 5 MILLION TO INVEST IN LOCAL MANUFACTURING AND AGRICULTURAL FIRMS CAN'T GET NO RESPECT GRIPES NEW JERSEY A SOUVENIR CARD BEARING WORLD CUP STAMPS TO BE ISSUED NEXT MONTH BY THE US POSTAL SERVICE HAS NEW YORK AS A SITE OF THE GAMES ALTHOUGH THE MATCHES IN THE AREA WILL BE PLAYED AT GIANTS STADIUM IN THE STATE NEXT DOOR THE SERVICE SAID WORLD CUP USA 1994 HAD APPROVED THE CARD PACKAGE PANIC OLD CONTAINERS POSE A PROBLEM AS FOODLABEL DEADLINE NEARS WITH THE NEW FOODLABELING LAW TAKING EFFECT MAY 8 SOME FOOD AND PACKAGE FIRMS ARE SQUAWKING ABOUT A MARCH 31 FDA CLARIFICATION THAT WOULD FORCE THEM TO DISCARD MILLIONS OF DOLLARS IN PACKAGING THE AGENCY CONFIRMED LAST MONTH THAT THE SALE OF FOOD CARRYING OLD LABELS IS ALLOWED AFTER MAY 8 SO LONG AS THE FOOD WAS PACKAGED AND LABELED BEFORE THE DEADLINE BUT IT DIDN'T ALLOW COMPANIES TO USE UP OLD PACKAGING INVENTORY AFTER THE MAY 8 DEADLINE THIS SURPRISED SOME FIRMS WHO HAD READ AN FDA NOTICE LAST AUGUST TO MEAN JUST THE OPPOSITE AND MADE PLANS ACCORDINGLY SUNKIST GROWERS IN CALIFORNIA FOR INSTANCE MAY HAVE TO JUNK 3 MILLION IN PLASTIC BAGS LIKE OTHER COMPANIES IT IS SEEKING AN EXTENSION THE FINAL DECISION WAS EXCRUCIATINGLY CLEAR BUT ALL THE TALK BEFORE THAT WASN'T SAYS JOHN ROBERTS OF THE NATIONAL ASSOCIATION FOR THE SPECIALTY FOOD TRADE IN NEW YORK CITY FOODBANK NETWORK SECOND HARVEST HOPES TRANSITION GLITCHES WILL SPUR FOOD DONATIONS WHICH FELL LAST YEAR AS FOOD FIRMS BECAME BETTER AT CUTTING SURPLUSES BRIEFS BELFRY INCLUDED BURPEE PUTS TOGETHER A NINESEED PACKAGE DESIGNED FOR A GARDEN THAT WILL LURE INSECTEATING BATS SEMINAR ON THE SULTAN TO MARK BABE RUTH'S 100TH BIRTHDAY IN 1995 HOFSTRA UNIVERSITY IN NEW YORK PLANS A SCHOLARLY CONFERENCE ON THE BASEBALL LEGEND 9404210073 940421 LEISURE & ARTS TV DETECTIVE TENNISON TAMIL TIGERS A CONFEDERATE WIFE BY DOROTHY RABINOWITZ IT HARDLY NEEDS SAYING THAT SUCH QUESTIONS IN A TITLE ARE RHETORICAL AND THIS TITLE IS NO EXCEPTION IN THIS SPECIAL BY ABC REPORTER JOHN STOSSEL THE ANSWER IS A RESOUNDING YES WE ARE BEING UNDULY FRIGHTENED ABOUT ENVIRONMENTAL HAZARDS AND ALSO BY REPORTS ABOUT CRIME AS REGARDS THE LAST STATISTICS ARE HAULED FORTH WITH NOT A LITTLE POMPOSITY TO SHOW HOW SILLY IT IS FOR AMERICANS TO HAVE CONCLUDED THAT CRIME IS OUT OF CONTROL WHEN THE CLAIM GOES NUMBERS AND GRAPHS SHOW THAT CRIME IS DOWN IT IS UNLIKELY THAT A PUBLIC WHICH CAN SEE FOR ITSELF HOW MUCH MORE DANGEROUS AND BRUTAL LIFE HAS BECOME THAN IT WAS SAY 25 YEARS AGO WILL FIND MUCH RELEVANCE IN THE STATISTICS SO CONFIDENTLY TOSSED ABOUT HERE THE REPORT TAKES A DECIDED TURN FOR THE BETTER LATER ON AS IT TAKES DEAD AIM AT TERRORS IN FASHION AND OUT FROM ALAR TO ASBESTOS HELEN MIRREN'S POLICEWOMAN TENNISON RETURNS THIS TIME TO HUNT DOWN PEDOPHILES AND PROCURERS PREYING ON BOYS IN A PRIME 3 THAT IS ENTERTAINING ENOUGH JUST IF ALSO A TOUCH TIRESOME IN ITS ENDLESSLY ENLARGING WEB OF CONSPIRACIES AND SINISTER CONNECTIONS IT FALLS TO DETECTIVE CHIEF INSPECTOR TENNISON HERE TO SOLVE THE MURDER OF ONE YOUNG HUSTLER ROOT OUT A NEST OF CORRUPT POLICE HIGHERUPS INVOLVED IN A VICE RING AND GET THE GOODS ON A SUSPICIOUSLY SAINTLY SOCIAL WORKER WHILE DEALING IN BETWEEN WITH SLINGS AND ARROWS FROM DEPARTMENT COMPETITORS AND HOSTILE MALE SUBORDINATES FURTHER SHE MUST FIND TIME AGAIN AS IN PRIME 1 TO DISPATCH A MAN WHO LOVES HER BECAUSE CAREER COMES FIRST ETC BUT UNLIKE THE ADMIRABLE PRIME 1 WHICH MADE SOMETHING OF THIS THEME IN THIS LATEST VENTURE IT IS JUST ANOTHER OF THE INNUMERABLE UNCONNECTED WEIGHTLESS ELEMENTS JAMMED HELTERSKELTER INTO THE DRAMATIC POT THE RESULTING PRIME SUSPECT 3 IS AN OVERCOOKED MIX OF PLOT TURNS DESIGNED TO EXTRACT THE MAXIMUM JOLT AS IS THE CHORALE OF UNEARTHLY HOWLS THE PRODUCERS HAVE THROWN IN BY WAY OF MUSICAL ACCOMPANIMENT INVESTIGATIVE REPORTS DELIVERS THE FIRST TELEVISION INTERVIEW WITH THE TAMIL TIGERS OF SRI LANKA REPUTED TO BE THE WORLD'S MOST FANATIC GUERRILLA ORGANIZATION INDEED THIS GROUP RESPONSIBLE FOR THE ASSASSINATION OF RAJIV GANDHI DOES APPEAR PARTICULARLY DEDICATED WE ARE SHOWN THE CEREMONY IN WHICH CADRES WHO FINISH THEIR TRAINING COURSE RECEIVE THEIR GRADUATION CREDENTIALS SUICIDE VIALS OF CYANIDE TO BE WORN AROUND THE NECK NO WEAKNESSES AS ONE LEADER PUTS IT ARE PERMITTED AMONG TAMIL TIGERS NO DRINKING NO SMOKING AND NO SEXUAL ACTIVITY A COMPELLING DOCUMENTARY IN SHORT NOT LEAST FOR ITS DEPICTIONS OF TIGERS LIKE THE YOUNG WOMAN WHOSE ARMS HAVE BEEN BLOWN OFF BUT WHO CAN AS SHE PROUDLY NOTES STILL LOAD A RIFLE AND ROLL BOMBS WITH HER FEET ALAN GURGANUS'S NOVEL ABOUT A 14YEAROLD WHO BECOMES THE WIFE OF A 50YEAROLD CONFEDERATE VETERAN HAS BEEN TURNED INTO A TWOPART MINISERIES THAT DEFIES GLOOMY EXPECTATIONS MODERN SERIOCOMIC NOVELS DON'T AFTER ALL TRANSLATE TO THE SCREEN VERY WELL OR FOR THAT MATTER READ VERY WELL EITHER MOST OF THE TIME FORGET THAT THIS ADAPTATION PRODUCED BY FRANK KONIGSBERG AND LARRY SANITSKY IS A TRIUMPH PLAIN AND SIMPLE ITS COMEDY COMIC ITS TERROR CUTTING BLYTHE DANNER SETS THE TONE FROM THE OUTSET WITH A PERFORMANCE OF FEROCIOUS VITALITY AS THE SOCIALLY AMBITIOUS MOTHER IN DESPAIR OVER HER INABILITY TO POUND SOME SENSE INTO HER DAUGHTER DIANE LANE OR AT LEAST TO GET HER TO DROP DECLASSE WORDS LIKE AIN'T NOTHING IS MORE HILARIOUS HERE THAN THE SCENE IN WHICH MS DANNER HAMMERS ON THE GIRL'S DOOR CRYING AIN'T AIN'T AIN'T IS A DAGGER YOU HAVE DRIVEN THROUGH MY HEART NOTHING PERHAPS EXCEPT DONALD SUTHERLAND AS THE COLONEL INTRODUCING HIS BRIDE TO THE PLEASURES OF THE MARRIAGE BED THIS AMERICAN PLAYHOUSE PRODUCTION CONCERNS THE ACTUAL STORY OF THREE ELDERLY BACHELOR BROTHERS ON AN UPSTATE NEW YORK FARM ONE OF WHOM IS CHARGED WITH KILLING ANOTHER THIS COLORFUL CHRONICLE MAY NOT BE EVERYONE'S CUP OF TEA BEWARE ESPECIALLY THE SCENES SHOWING CLOSEUPS OF A PIG BEING SLAUGHTERED ON THE OTHER HAND IT IS HARD TO RESIST A FILM THAT BILLS ITSELF AS A HEARTWARMING TALE OF MURDER 9404210072 940421 BANKERS TRUST GETS BIG BOOST FROM SALE OF DERIVATIVES ANOTHER CLIENT HAS LOSS BY STEVEN LIPIN AND GABRIELLA STERN STAFF REPORTERS OF THE WALL STREET JOURNAL BANKERS TRUST NEW YORK CORP DISCLOSED THAT ALMOST THREEFOURTHS OF ITS FIRSTQUARTER PROFIT CAME FROM THE SALE OF DERIVATIVE PRODUCTS ALTHOUGH SOME OF ITS CLIENTS DIDN'T FARE SO WELL MEAD CORP A DAYTON OHIO PRODUCER OF PAPER PRODUCTS AND INFORMATION SERVICES BECAME THE THIRD COMPANY IN RECENT WEEKS TO REPORT LOSSES FROM DERIVATIVES PURCHASED FROM THE BIG BANK MEAD SAID IT WILL TAKE A ONETIME PRETAX CHARGE OF 121 MILLION IN ITS FIRST QUARTER TO CLOSE OUT A UNIQUE LEVERAGED INTERESTRATE SWAP CONTRACT WITH THE BANK AFTER TAXES THE CHARGE WAS 74 MILLION OR 12 CENTS A SHARE MEAD'S ANNOUNCEMENT CAME SOON AFTER TWO OTHER OHIO COMPANIES POSTED LOSSES FROM SIMILAR PURCHASES FROM BANKERS TRUST OF DERIVATIVES WHICH ARE FINANCIAL AGREEMENTS WHOSE RETURNS ARE LINKED TO OR DERIVED FROM THE PERFORMANCE OF SOME UNDERLYING ASSET LAST WEEK PROCTER & GAMBLE CO A CONSUMERPRODUCTS MAKER BASED IN CINCINNATI ANNOUNCED A 157 MILLION PRETAX CHARGE IN ITS FISCAL THIRD QUARTER TO CLOSE OUT TWO DERITATIVES CONTRACTS AND ON TUESDAY GIBSON GREETINGS INC ALSO BASED IN CINCINNATI SAID IT INCURRED AN ADDITIONAL CHARGE AGAINST EARNINGS OF 167 MILLION FOR THE FIRST QUARTER AS A RESULT OF UNAUTHORIZED INTERESTRATE SWAPS THE MAKER OF GREETING CARDS AND WRAPPING PAPER PREVIOUSLY ANNOUNCED A 3 MILLION LOSS ON DERIVATIVES BOTH COMPANIES HAVE THREATENED LEGAL ACTION AGAINST BANKERS TRUST THE BANK MEANWHILE SAID 70 OF ITS FIRSTQUARTER EARNINGS OR ABOUT 114 MILLION CAME FROM THE SALE OF DERIVATIVE INSTRUMENTS TO CLIENTS MR YATES SAID THE PICKUP IN DERIVATIVE SALES RESULTED FROM AN INCREASED DEMAND FROM BANKS AND INVESTORS PARTICULARLY IN EUROPE LAST YEAR ABOUT 31 OF BANKERS TRUST'S BOTTOM LINE CAME FROM DERIVATIVE SALES THE BANK ALSO SAID IT INCURRED LOSSES TOTALING 49 MILLION IN THE LATEST QUARTER FROM TRADING MOSTLY BONDS AND CURRENCIES FOR ITS OWN ACCOUNT IN CONTRAST TO THE AVERAGE 149 MILLION IT EARNED IN EACH QUARTER LAST YEAR BANKERS TRUST WHICH ANNOUNCED FIRSTQUARTER EARNINGS OF 164 MILLION OR 190 A SHARE ON TUESDAY PROVIDED THE ADDITIONAL INFORMATION ABOUT ITS RESULTS YESTERDAY TO WALL STREET ANALYSTS TIMOTHY YATES CHIEF FINANCIAL OFFICER OF BANKERS TRUST SAID THAT A TREMENDOUS MAJORITY OF OUR CLIENTS USE DERIVATIVES TO HEDGE RISK WHILE A VERY SMALL MINORITY HAVE TAKEN LOSSES WE BELIEVE THERE WILL BE A SLOWDOWN AS CLIENT POLICIES AND PROCEDURES TIGHTEN BUT IN THE LONGTERM WE SEE THAT AS GOOD MR YATES SAID THERE'S A LITTLE SLOWDOWN NOW BECAUSE OF A LACK OF FIRM TRENDS IN THE MARKET BUT NOT FOR ANY OTHER REASON REGARDING THE BANK'S TRADING LOSSES MR YATES SAID THEY RESULTED FROM A RISE IN INTEREST RATES IN MANY EUROPEAN COUNTRIES WE HAD LONG POSITIONS AND WE WERE WRONG MR YATES SAID WE CLOSED OUT OUR POSITIONS AND REDUCED OUR LEVEL OF ACTIVITY BUT AT A TIME WHEN REGULATORS ARE INCREASINGLY CONCERNED ABOUT BANKS TRADING ACTIVITIES MR YATES SAID OUR RISK CONTROLS WORKED WELL WE KNEW WHAT OUR POSITIONS WERE AND MARKED THEM TO MARKET CONSTANTLY TOM SCHWARTZ A MEAD SPOKESMAN SAID THE 121 MILLION PRETAX CHARGE REFLECTS LOSSES FROM SEVERAL SWAPS THOUGH THE BULK CAME FROM A LEVERAGED SWAP MEAD HAS HEDGED ITS DEBT AS PART OF OUR ONGOING FINANCIAL MANAGEMENT HE SAID IT'S A ROUTINE PART OF HOW WE DO BUSINESS OVER THE LAST NUMBER OF YEARS WE'VE LOWERED OUR INTEREST COSTS THROUGH DOING THAT HOWEVER MR SCHWARTZ ADDED THIS PARTICULAR LEVERAGED INTERESTRATE TRANSACTION WITH BANKERS TRUST IS A ONETIME EVENT WE WON'T BE DOING THOSE KINDS AGAIN MEAD POSTED 8 HIGHER NET INCOME OF 276 MILLION OR 46 CENTS A SHARE AFTER THE CHARGE FOR THE PERIOD ENDED MARCH 31 9404210071 940421 INTERNATIONAL IMF CLEARS RELEASE OF 15 BILLION IN AID TO RUSSIA BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE INTERNATIONAL MONETARY FUND FORMALLY CLEARED THE RELEASE OF 15 BILLION IN SPECIAL AID TO RUSSIA A STEP THAT IS EXPECTED TO UNLOCK BILLIONS OF DOLLARS IN FUTURE ECONOMIC SUPPORT FOR MOSCOW AT A TIME WHEN ECONOMIC GROWTH IS QUICKENING IN MUCH OF THE WORLD RUSSIA'S ECONOMY IS SHRINKING RAPIDLY AS THE FORMER COMMUNIST STATE STRUGGLES TO TURN CAPITALIST ACCORDING TO THE IMF'S SPRING ECONOMIC FORECAST RELEASED YESTERDAY WORLD ECONOMIC OUTPUT IS EXPECTED TO RISE 3 THIS YEAR AND 37 IN 1995 UP FROM 23 LAST YEAR BUT THE IMF PROJECTS THAT RUSSIA'S OUTPUT WILL FALL 99 THIS YEAR AFTER CONTRACTING 115 IN 1993 THE FUND'S BOARD AGREED TO RELEASE THE 15 BILLION AFTER IMF MANAGING DIRECTOR MICHEL CAMDESSUS RETURNED FROM MOSCOW WITH ASSURANCES THAT RUSSIA IS COMMITTED TO CONTINUING AN ECONOMIC REFORM PLAN THAT CALLS FOR BUDGETARY RESTRAINT DECLINING INFLATION AND FURTHER MOVEMENT TOWARD MARKETDETERMINED PRICES FOR GOODS AND SERVICES MOSCOW HAS AGREED TO FOLLOW POLICIES DESIGNED TO LOWER ITS INFLATION RATE TO 7 A MONTH BY THE END OF THE YEAR A SHARP REDUCTION FROM ABOUT 20 IN JANUARY THE BUDGET DEFICIT IS PROJECTED TO FALL TO 65 OF GROSS DOMESTIC PRODUCT THIS YEAR FROM AN ESTIMATED 8 IN 1993 IN A STATEMENT THE IMF SAID THAT THE SUCCESS OF THE GOVERNMENT'S 1994 PROGRAM CRITICALLY HINGES ON THE STRICT IMPLEMENTATION OF ITS FISCAL PLAN THE PAYMENT IS THE SECOND HALF OF A SOCALLED SYSTEMIC TRANSFORMATION FACILITY A SPECIAL FUND CREATED BY THE IMF TO HELP FORMERLY COMMUNIST COUNTRIES MOVE FROM COMMAND TO MARKET ECONOMIES RUSSIA HAS SAID IT WILL USE THE 15 BILLION FOR SOME OF THE 5 BILLION TO 6 BILLION IN SALARY PENSION AND OTHER PAYMENTS IT HAS DELAYED TO MILITARY AND DOMESTIC WORKERS OR TO MEET SOME OF ITS DEBT PAYMENTS TO INTERNATIONAL LENDERS NOW THAT RUSSIA HAS AGREED TO THE STEPS NECESSARY TO SECURE THE LONGDELAYED 15 BILLION MOSCOW AND THE IMF WILL BEGIN NEGOTIATIONS ON THE TERMS OF 4 BILLION IN ADDITIONAL AID UNDER A SOCALLED STANDBY AGREEMENT THE IMF WAS CREATED 50 YEARS AGO TO HELP NATIONS REHABILITATE CRIPPLED ECONOMIES IN ADDITION MOSCOW WILL START DISCUSSIONS WITH INDUSTRIAL NATIONS TO STRETCH OUT PAYMENTS ON SOME 80 BILLION OF OFFICIAL DEBT IN ORDER TO REDUCE RUSSIA'S ANNUAL DEBT PAYMENTS THE IMF'S LATEST WORLD ECONOMIC OUTLOOK PROJECTS A HAPPY COMBINATION OF RISING OUTPUT AND MODERATING INFLATION GROWTH IN THE SEVEN LEADING INDUSTRIAL NATIONS IS PROJECTED TO REACH 25 THIS YEAR AND NEXT UP FROM 14 IN 1993 WITH ECONOMIC RECOVERY IN JAPAN GERMANY FRANCE AND ITALY THE US ECONOMY WILL GROW 39 THIS YEAR AND GROW A SMALLER 26 NEXT YEAR AFTER EXPANDING 3 IN 1993 THE IMF SAID GROWTH IN DEVELOPING NATIONS WILL SLOW TO 55 THIS YEAR FROM 61 LAST YEAR BUT RISE TO 58 IN 1995 THE IMF FORECASTS AFTER SLOWING TO 24 IN 1993 WORLD TRADE VOLUME IS EXPECTED TO GROW 58 THIS YEAR AND 63 NEXT YEAR 9404210070 940421 HEARD ON THE STREET DISNEY'S QUEST FOR NEW PROFITS COVERS BIG AREA BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL WITH THEIR EURO DISNEY DEBACLE BANDAGED BY A DEBT RESTRUCTURING EXECUTIVES OF WALT DISNEY CO ARE LEFT PURSUING A SLEW OF WILDLY DISPARATE GROWTH OPPORTUNITIES TOO MANY SAY SOME WALL STREET ANALYSTS WHO AREN'T SURE WHETHER THIS AMOEBALIKE EXPANSION CAN HAVE MUCH IMPACT ON DISNEY'S ALREADY GARGANTUAN OPERATING PROFITS IT SEEMS THAT BARELY A MONTH GOES BY WITHOUT SOME NEW DISNEY BUSINESS MAKING NEWS THIS WEEK WAS THE OPENING OF DISNEY'S FIRST BROADWAY SHOW A MUSICAL BEAUTY AND THE BEAST BASED ON THE COMPANY'S 1991 ANIMATEDMOVIE HIT FEBRUARY BROUGHT WORD THAT DISNEY IS EYEING THE CRUISELINE BUSINESS TO BRING MORE VISTORS TO ITS THEME PARKS THE PRIOR MARCH DISNEY ANNOUNCED PLANS TO BUILD A NEW RESORT IN VERO BEACH FLA AS PART OF A FORAY INTO VACATION TIMESHARING THERE IS ALREADY A DISNEY PROFESSIONAL HOCKEY TEAM THE MIGHTY DUCKS NAMED AFTER ANOTHER DISNEY MOVIE NOT TO MENTION THE BOOKS AND RECORDS DIVISIONS RETAIL STORES AND VIDEO GAMES ON THE DRAWING BOARDS ARE THE DISNEY INSTITUTE WHICH DISNEY CALLS A NEW GENRE OF VACATION EXPERIENCES COMBINING ENRICHMENT AND ENTERTAINMENT AND CELEBRATION AN ALLNEW CITY THAT ULTIMATELY WILL HOUSE 20000 RESIDENTS NOT TO MENTION A NEW THEME PARK OUTSIDE WASHINGTON DC DISNEY EXECUTIVES SAY ALL THE NEW ACTIVITY IS AIMED AT HELPING DISNEY REACH ITS TARGET OF 20 ANNUAL PROFIT GROWTH MOST OF THAT GROWTH IS STILL EXPECTED TO COME FROM DISNEY'S CORE BUSINESSES OF MOVIES THEME PARKS AND CONSUMER ITEMS BASED ON DISNEY CHARACTERS OR PROPERTIES BUT SOME ANALYSTS WONDER WHETHER SO MANY DIFFERENT IDEAS MAY SPREAD TOP MANAGEMENT TOO THIN DISNEY IS TRYING TO FIND AVENUES FOR NEW GROWTH SAYS EMANUEL GERARD CHAIRMAN OF GERARD KLAUER & MATTISON AN ENTERTAINMENTRESEARCH FIRM HE ADDS A LOT OF EFFORT GOES INTO EACH OF THESE INITIATIVES IF THE OPPORTUNITY ISN'T BIG ENOUGH IS IT WORTH THE EFFORT I DON'T KNOW BECAUSE DISNEY'S 17 BILLION ANNUAL OPERATING PROFIT HAS GROWN SO LARGE MR GERARD SAYS DISNEY EXECUTIVES MIGHT BE BETTER SERVED SCREWING UP THEIR COURAGE MAKING A LARGER ACQUISITION AND PUTTING ALL THEIR ENERGY INTO THAT BUT DISNEY EXECUTIVES SAY THEY HAVE CHOSEN A LOWERRISK STRATEGY DELIBERATELY IF YOU'RE GOING TO TRY TO GROW 20 YOU CAN EITHER DO ONE BIG THING THAT MAY OR MAY NOT WORK OUT OR 20 SMALLER THINGS 10 OF WHICH MIGHT WORK WELL LIKE THE DISNEY STORES SAYS RICHARD NANULA CHIEF FINANCIAL OFFICER IN ANY CASE HE ADDS THE SMALLER THINGS MAY NOT BE MOVIES OR TV BUT ALL THESE THINGS ARE ENTERTAINMENTDRIVEN THE 1984 INVESTMENT THAT BASS FAMILY MEMBERS MADE IN DISNEY WAS INDISPUTABLY ONE OF THE GREAT STOCKMARKET SUCCESSES OF THE 1980S THE BASSES WHO AT ONE POINT OWNED 25 OF DISNEY SAW THEIR INVESTMENT GROW MORE THAN TENFOLD THE MAN BROUGHT IN TO HEAD THE COMPANY DISNEY CHAIRMAN MICHAEL EISNER BOOSTED REVENUE FROM 15 BILLION IN 1984 TO 85 BILLION LAST YEAR ALTHOUGH THE DISNEY MOVIE STUDIO SEEMED TO LOSE MOMENTUM A FEW YEARS AGO AND OPERATING LOSSES AT THE EURO DISNEY PARK IN FRANCE HAVE SAPPED CORPORATE RESOURCES MR EISNER DID WELL ENOUGH TO MAKE MORE THAN 200 MILLION LAST YEAR MOSTLY THROUGH EXERCISING LONGTERM STOCK OPTIONS ANALYSTS TRACE THE DIVERSE GROWTH INITIATIVES TO THE SUCCESS OF DISNEY'S RETAILING DIVISION WHICH HAS GROWN TO 268 DISNEY STORES IN SEVEN YEARS SINCE THEN MOVIE STUDIOS FROM WARNER TO PARAMOUNT HAVE FOLLOWED DISNEY INTO RETAILING ALTHOUGH THE DISNEY STORES HAVE BEEN A BIG SUCCESS SOME ANALYSTS SAY THEIR PROFIT MARGINS HAVE BEEN HURT BY THE COSTS OF A CORPORATE INFRASTRUCTURE DESIGNED FOR 500 STORES SOME INVESTORS ARGUE THAT THE MANY NEW VENTURES ARE A SIGN OF A HEALTHY CORPORATE CULTURE WHAT YOU'VE GOT IS AN EXAMPLE OF VIBRANCY AND CREATIVITY AND INGENUITY RATHER THAN BEING STUCK IN YOUR COCOON SAYS ENTERTAINMENT ANALYST LAWRENCE HAVERTY OF STATE STREET RESEARCH & MANAGEMENT WHICH OWNS MORE THAN 14 MILLION DISNEY SHARES BUT SOME OTHER ANALYSTS SPECULATE THAT DISNEY MAY BE ANNOUNCING SO MANY NEW VENTURES TO DEMONSTRATE THAT IT HASN'T BEEN LAID LOW BY THE PROBLEMS WITH THE EURO DISNEY PARK AND ONE ANALYST BELIEVES THE NEW BUSINESSES REFLECT A CERTAIN INSECURITY ON THE PART OF TOP MANAGERS ARISING BECAUSE THEY HAVE NOT PARTICIPATED IN HARDWARE ON THE MULTIMEDIA SIDE DAVID LONDONER OF WERTHEIM SCHRODER & CO SAYS THAT BECAUSE DISNEY HAS HAD PROBLEMS SUCH AS EURO DISNEY AND THEMEPARK ATTENDANCE HAS BEEN HURT BY TOURIST SHOOTINGS IN FLORIDA AND EARTHQUAKES IN CALIFORNIA THE COMPANY'S STOCK HAS RETURNED TO A VERY REASONABLE VALUATION LEVEL OF BELOW 20 TIMES THIS YEAR'S EXPECTED EARNINGS HE SAID HE RECENTLY PUT DISNEY BACK ON THE RECOMMENDED LIST FOR THE FIRST TIME IN ABOUT THREE YEARS MR LONDONER SAYS DISNEY'S PLANS TO STEP UP OVERSEAS VIDEOCASSETTE SALES OF ITS ANIMATED FEATURES TOGETHER WITH A BOOST IN ITS CURRENT ANIMATEDFEATURE PRODUCTION COULD HAVE A FAR GREATER IMPACT ON PROFITS THAN ANY OF THE LITTLE POCKETS AND SUBDIVISIONS A MOVIE LIKE LAST YEAR'S ALADDIN HE NOTES WASN'T ONLY A BOXOFFICE HIT BUT ALSO SOLD CLOSE TO 30 MILLION CASSETTES IN THE DOMESTIC MARKET ALONE SOME IN BOTH THE FILMGOER AND INVESTOR CATEGORIES EXPECT STRONG THEATRICAL AND VIDEO SHOWINGS FROM THIS YEAR'S THE LION KING WHICH OPENS JUNE 15 DISNEY ALSO IS COUNTING ON FAR MORE PROSAIC BUSINESSES FOR A BIG CHUNK OF GROWTH IN LATIN AMERICA ALONE DISNEY EXPECTS SALES OF LICENSED MERCHANDISE SUCH AS MICKEY MOUSE TSHIRTS AND THE LIKE TO TRIPLE BY THE YEAR 2000 FROM 600 MILLION LAST YEAR AS FOR THE BROADWAY SHOWS DISNEY BELIEVES THEY CAN BE TURNED INTO TOURING COMPANIES ICECAPADES STYLE BUT EURO DISNEY ISN'T THE ONLY NEW VENTURE TO HAVE PRODUCED LOSSES SO HAS DISNEY'S RECORD BUSINESS ONE ANALYST COMPLAINS THAT THE HOCKEY TEAM PARTICULARLY SEEMED TO BE TAKING UP A LOT OF MR EISNER'S TIME AND ANALYSTS THINK DISNEY'S GROWTH PROSPECTS ARE PROBABLY MORE LIKE 12 TO 15 INSTEAD OF THE COMPANY'S 20 TARGET HAROLD VOGEL WHO FOLLOWS ENTERTAINMENT STOCKS FOR MERRILL LYNCH BELIEVES THAT DISNEY'S SIZE AND DEEP RESERVOIR OF ENTERTAINMENT PROPERTIES GIVE THE COMPANY SUFFICIENT RESOURCES TO GO IN ALL THESE DIFFERENT DIRECTIONS AT THE SAME TIME ALL THE SAME MR VOGEL DOWNGRADED HIS INTERMEDIATETERM OPINION OF DISNEY TO NEUTRAL FROM ABOVEAVERAGE TUESDAY MORNING IN DOING SO HE SAID MONDAY'S INCREASE IN SHORTTERM INTEREST RATES BY THE FEDERAL RESERVE WILL PROBABLY TAKE SOME OF THE WIND OUT OF THE SAILS OF CONSUMER SENTIMENT AND SPENDING AS WILL HIGHER INCOMETAX PAYMENTS BY UPPERINCOME FAMILIES ANOTHER ANALYST SAYS DISNEY HAS PRETTY MUCH EXHAUSTED THE GROWTH POSSIBILITIES OF ITS THEME PARKS BECAUSE TICKETPRICE INCREASES HAVE HELPED JACK UP THE TOTAL COST OF A FOURDAY TRIP TO DISNEYWORLD TO AS MUCH AS 3500 FOR A FAMILY OF FOUR TICKETPRICE INCREASES WHICH TOTALED 65 IN THE FOUR YEARS ENDED IN 1987 SLOWED TO 20 IN THE FOUR YEARS ENDED IN 1993 NYSE SYMBOL DIS FROM ACCOUNTING CHANGE 9404210068 940421 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG THE WORLD SEEMS AWASH IN MULTIMEDIA COMPUTER SOFTWARE DESIGNED TO BRING INTERACTIVE MIXTURES OF VIDEO SOUND TEXT AND PHOTOS TO PEOPLE WITH COMPUTERS EQUIPPED TO PLAY CDROM DISKS PUBLISHERS ARE CRANKING THE DISKS OUT FAST IN HOPES OF REAPING BIG BUCKS FROM THE MILLIONS OF PEOPLE BUYING THOSE COMPUTERS IT HAS BECOME SUCH A BIG BUSINESS THAT ENTERTAINMENT WEEKLY MAGAZINE THIS WEEK ADDED A MULTIMEDIA SECTION TO COMPLEMENT THOSE COVERING TELEVISION CINEMA AND OTHER MORE ESTABLISHED ARTS CATEGORIES ALAS HOWEVER MUCH OF WHAT PASSES FOR MULTIMEDIA ISN'T WORTH STUFFING INTO YOUR COMPUTER AND IT CAN BE HARD TO TELL FROM THE BOXES SO PERIODICALLY I CULL SOME OF THE MORE INTERESTING TITLES FROM THE MANY THAT CROSS MY DESK AND REVIEW THEM IN THIS SPACE HERE ARE FOUR MORE THE MOST INNOVATIVE CDROM I'VE SEEN IN A LONG TIME WAS CREATED BY PETER GABRIEL THE AWARDWINNING BRITISH ROCKANDROLL STAR WHO HAS LONG USED COMPUTER GRAPHICS TO PRODUCE TERRIFIC MUSIC VIDEOS TITLED XPLORA 1 PETER GABRIEL'S SECRET WORLD THE 50 DISK LETS THE USER WANDER DIGITALLY AMONG A RICH ARRAY OF FEATURES INCLUDING NUMEROUS GABRIEL SONGS INTERVIEWS A HISTORY OF MR GABRIEL'S WORK AND ORIGINAL ART BASED ON THE MUSIC THERE ARE FOUR COMPLETE VIDEOS INCLUDING THE DELIGHTFUL STEAM A COMMENTARY ON SEXISM AND STEREOTYPING BUT XPLORA PRODUCED BY MR GABRIEL'S REAL WORLD MULTIMEDIA AND BRILLIANT MEDIA OF SAN FRANCISCO IS MUCH MORE THAN A CATALOG OF THE SINGER'S WORK THERE'S A SECTION ABOUT UNUSUAL MUSICAL INSTRUMENTS FROM AROUND THE WORLD ANOTHER FEATURES PERSONAL THEMES INCLUDING FAMILY PHOTOS AND VIDEOS ABOUT POLITICAL REPRESSION STILL ANOTHER SECTION TAKES USERS BEHIND THE SCENES OF MR GABRIEL'S WORK INCLUDING A TOUR OF HIS RURAL ENGLISH MUSIC STUDIO WHERE YOU CAN TRY REVISING A GABRIEL SONG MY ONLY COMPLAINTS ABOUT XPLORA 1 WHICH IS AIMED AT TEENAGERS AND ADULTS ARE THAT IT USES SEVERAL COMPETING AND OVERLAPPING NAVIGATION SYSTEMS AND THAT IT IS AVAILABLE ONLY FOR THE MAC INTERPLAY PRODUCTIONS THE DISTRIBUTOR PROMISES A VERSION FOR MICROSOFT WINDOWS BY CHRISTMAS HOW DO YOU TEACH THE DUSTY TEXTS OF GREEK MYTHOLOGY TO A VIDEO CHILD OF THE '90S ANSWER TURN MYTHOLOGY INTO A VIDEO GAME GROUNDED IN THE MYTHS THEMSELVES THAT'S THE APPROACH TAKEN BY LUMINARIA A STARTUP SOFTWARE COMPANY IN SAN FRANCISCO AND THE RESULT A 40 DISK CALLED WRATH OF THE GODS SUCCEEDS WITH FLYING COLORS IN THE GAME AVAILABLE FOR WINDOWS AND MAC THE USER PLAYS A YOUNG MAN ABANDONED AT BIRTH BY HIS ROYAL PARENTS ON A QUEST TO FIND AND RECLAIM HIS KINGDOM HE TRAVELS THROUGH ANCIENT GREECE ENCOUNTERING PUZZLES CHALLENGES AND OBSTACLES DRAWN FROM MYTHOLOGY SUCH AS THE HYDRA AND THE MINOTAUR THE SITUATIONS AREN'T IDENTICAL TO THE MYTHS BUT THE MYTHOLOGICAL PARALLELS AND BACKGROUNDS CAN BE READ AT ANY TIME AND ARE HELPFUL TO SOLVING THE PUZZLES MORE DIRECT HINTS ARE AVAILABLE FOR A PRICE OF FIVE POINTS FROM AN ANIMATED ORACLE IN FACT ALL THE CHARACTERS IN THE GAME ARE MOVING VIDEOS NOT DRAWINGS THOUGH THE VIDEO MOTION CAN BE A BIT CHOPPY WRATH OF THE GODS IS LADEN WITH HUMOR THERE'S LITTLE OR NO VIOLENCE AND YOU CAN'T DIE YOU JUST GO SOMEWHERE ELSE LIKE HADES IT'S PRESUMABLY EASIER TO GET FOLKS INTERESTED IN MICHAEL JORDAN THE WORLD SERIES AND THE SUPER BOWL THAN MYTHOLOGY BUT A NEW CDROM FROM SPORTS ILLUSTRATED DOESN'T TAKE THAT FOR GRANTED THE MAGAZINE'S 1994 MULTIMEDIA SPORTS ALMANAC PRODUCED BY STARPRESS MULTIMEDIA OF SAN FRANCISCO IS AS VISUALLY FRESH AND INTERESTING AS THE SPORTS EVENTS IT COVERS THE 40 DISK INCLUDES 40 MINUTES OF VIDEOS COVERING THE EVENTS OF LATE 1992 THROUGH LATE 1993 THE MAGAZINE'S COMPLETE TEXT FROM THAT PERIOD PLUS 1200 PAGES OF STATISTICS 450 COLOR PHOTOS AND SEVERAL TRIVIA GAMES THE INTERFACE FEATURES BRIGHT RESPONSIVE ANIMATED CONTROLS AND EVEN COMES ON A SINGLE DISK THAT WORKS ON EITHER PCS RUNNING WINDOWS OR ON MACS TO SAVE SOME OF YOU A PHONE CALL I'LL TELL YOU IT DOESN'T INCLUDE THE ANNUAL SWIMSUIT PHOTOSIT'S ONLY ABOUT SPORTS FINALLY THERE'S A CDROM FROM CABLE NEWS NETWORK THAT COULD HAVE BEEN A CONTENDER BUT ISN'T IT'S CALLED CNN TIME CAPSULE 1993 AND WAS PRODUCED FOR THE NETWORK BY VICARIOUS ENTERTAINMENT OF REDWOOD CITY CALIF ITS STRONGEST FEATURE IS ITS 100 VIDEO CLIPS EACH COVERING A DEFINING MOMENT IN THE NEWS LAST YEAR THESE ARE EDITED BY CNN NEWS PEOPLE WITH A SKILL AND FLAIR RARELY SEEN ON MULTIMEDIA DISKS OTHER NICE FEATURES ARE THE PRICE ABOUT 29 AND THE FACT THAT LIKE THE SPORTS ILLUSTRATED CD IT COMES ON A SINGLE DISK FOR BOTH WINDOWS AND MAC WHAT RUINS THE CNN TIME CAPSULE HOWEVER IS ITS USER INTERFACE AND SOME SHAKY NEWS JUDGMENT THE DISK CONTAINS NO MENU OF ALL 100 EVENTS TO PICK ONE YOU MUST MANIPULATE A SCROLL BAR AND STOP AT THE RIGHT TITLE AS IT FLASHES BY IF YOU MANAGE THIS FEAT YOU'LL FIND THAT THE TOP NEWS STORY LAST YEAR WASN'T THE MIDEAST PEACE TREATY THE NEW CLINTON PRESIDENCY THE ATTEMPTED COUP IN RUSSIA OR THE DEVASTATING MIDWEST FLOODS NO IT WAS THE WACO TEXAS SHOOTOUT BETWEEN FEDERAL AGENTS AND RELIGIOUS CULTISTS A STORY WITH PLENTY OF BREATHLESS CNN VIDEO FOOTAGE THE BOBBITT GENITALMUTILATION TRIAL OUTRANKS THE CALIFORNIA WILDFIRES AND THE NAFTA TREATY WHICH GOES TO SHOW THAT MULTIMEDIA COMPUTER PROGRAMS LIKE ALL FORMS OF ART AND JOURNALISM AREN'T NECESSARILY GOOD JUST BECAUSE THEY'RE NOVEL 9404210067 940421 LETTERS TO THE EDITOR KEEP RELIGION SEPARATE IN ORDER TO PROTECT IT YOUR APRIL 4 EDITORIAL CHURCH AND STATE HAS FLAWED REASONING AND A BASIC MISPERCEPTION THAT ARDENT CHURCHSTATE SEPARATIONISTS ARE HOSTILE TO RELIGION THAT IS NOT TRUE AS ARDENT SEPARATIONISTS WE DEEPLY TREASURE THIS NATION'S COMMITMENT TO FREEDOM OF RELIGION REFLECTED IN THE FIRST AMENDMENT WE ESPECIALLY TREASURE THE ABILITY OF AMERICANS OF ALL FAITHS TO CELEBRATE THEIR RELIGIONS WITHOUT INTERFERENCE FROM THE STATE OUR CONCERN ABOUT THE INTRUSION OF RELIGION INTO THE PUBLIC SPHERE STEMS FROM THE CONVICTION THAT IF ORGANIZED RELIGION WERE TO ENTER THE PUBLIC SCHOOLS IT WOULD INEVITABLY BE THE MAJORITY'S RELIGION IN SUCH AN ENVIRONMENT WHERE PEER PRESSURE IS KEEN THOSE IN THE RELIGIOUS MINORITY WOULD INEVITABLY FEEL INFERIOR WE AGREE THAT THE US IS ONE OF THE MOST RELIGIOUS NATIONS ON EARTH GIVEN THAT PREMISE HOWEVER WE FAIL TO UNDERSTAND HOW THE JOURNAL CAN BLAME THE INTRACTABLE PROBLEMS OF CRIME WELFARE ILLEGITIMACY AND BROKEN FAMILIES OUR SOCIETY FACES ON OVERBEARING SECULARISM IN FACT THESE PROBLEMS HAVE MUCH LESS TO DO WITH THE CONTENT OF PUBLIC DISCOURSE THAN THEY HAVE TO DO WITH GRINDING POVERTY AND THE EASY AVAILABILITY OF GUNS AND DRUGS ON STREET CORNERS SOME JOURNAL READERS MAY BE TEMPTED TO BELIEVE THAT ORGANIZED PRAYERS IN OUR PUBLIC SCHOOLS WOULD BE AN EFFECTIVE WAY TO ADDRESS OUR SOCIETY'S PROBLEMS MOST WILL KNOW BETTER 9404210066 940421 LETTERS TO THE EDITOR GUTTING THE GUTLESS BRAVO AND DOUBLE BRAVO TO DAVID BROOKS FOR HIS CATFISHGUTTING OF THE END OF VANDALISM BY TOM DRURY AND HIS FACEACHINGLY ACCURATE DESCRIPTION OF THE AMERICAN LITERARY ELITE THAT RUNS THE UNIVERSITY CREWRITE PROGRAMS THE LITERARY JOURNALS AND MAGAZINES READ BY THOSE SIRAHSIPPING MONTANACOWBOYJEANS BUYING SECRETLUSTFORPEGBUNDY EASTERNERS THESE PEOPLE HAVE ALREADY PANCAKED THE SHORT STORY AS A POPULAR ART FORM AND ARE NOW STALKING THE LITERARY NOVEL THE ONLY THING LEFT TO REALLY READ ARE THE CLASSICS REMEMBER BALZAC'S GREAT BONFIRE OF THE TUILERIES DETECTIVE NOVELS IN WHICH COMPLEX SYMBOLS CALLED CHARACTERS ENGAGE IN LOGICALLY RELATED ACTIONS KNOWN AS A PLOT AND GREAT COLUMNS ON THE LEISURE & ARTS PAGE OF THE WALL STREET JOURNAL PLEASE GIVE MR BROOKS A MAGIC REALIST STORYABOUTSTORY BOOK TO REVIEW NEXT 9404210065 940404 REVIEW & OUTLOOK EDITORIAL CHURCH AND STATE IN THIS HOLY SEASON OF EASTER AND PASSOVER IT'S AN APPROPRIATE TIME TO CONSIDER THE STATUS OF RELIGION'S ROLE IN THE PUBLIC SPHERE SOME OF THE MOST DIFFICULT PROBLEMS FACING US SOCIETY TODAY CRIME WELFARE ILLEGITIMACY BROKEN FAMILIES ARE ONES THAT IN THE PAST WERE MITIGATED BY RELIGIOUS INFLUENCE NOT THE STATE THESE ARE PREPONDERANTLY MORAL CONCERNS AND A CONSENSUS SEEMS TO BE EMERGING THAT THEIR SOLUTIONS WILL DEPEND ON REVIVING THE MORAL SENSE IT WON'T BE EASY AFTER THE SUPREME COURT MADE SCHOOL PRAYER ILLEGAL ANYTHING REMOTELY RELIGIOUS DISAPPEARED FROM PUBLIC LIFE OFTEN BECAUSE OF LITIGATION BY THE ACLU BUT AS OFTEN DRIVEN OFF BY AN OVERBEARING SECULARISM THAT FOR INSTANCE BEGAN STRIPPING OUT RELIGIOUS REFERENCES FROM TEXTBOOKS IN TIME THE MEDIA ESSENTIALLY IGNORED RELIGION THOUGH ALLEGATIONS OF PEDERASTY AGAINST CATHOLIC PRIESTS WOULD CHEERFULLY BE KICKED THROUGH THE NEWS FOR WEEKS IT MUST BE ACKNOWLEDGED THAT OUR MAJOR RELIGIOUS INSTITUTIONS CONTENTEDLY HANDED OVER MANY OF THEIR TRADITIONAL SOCIAL FUNCTIONS TO THE GOVERNMENT THEN BECAME LOBBIES FOR STATE TAX COLLECTIONS THERE ARE SIGNS NOW THAT THIS MAY BE CHANGING ALBEIT SLOWLY RELIGION SEEMS TO BE WORKING ITS WAY MORE OFTEN INTO THE PUBLIC DISCOURSE WE HAVE A PRESIDENT WHO UNABASHEDLY TALKS ABOUT HIS BELIEFS ONE OF THE MOST INFLUENTIAL BOOKS OF LAST YEAR WAS YALE LAW PROFESSOR STEPHEN CARTER'S THE CULTURE OF DISBELIEF WHICH ARGUES THAT AMERICAN CULTURE LAW AND POLITICS DISCRIMINATE AGAINST RELIGION JAMES Q WILSON'S THE MORAL SENSE WAS WIDELY DISCUSSED AND WILLIAM BENNETT'S THE BOOK OF VIRTUES WELL RECEIVED IN BOTH CONSERVATIVE AND SOME LIBERAL PUBLICATIONS ROSE TO THE TOP OF THE BESTSELLERS' LISTS JESUS IS ON NEWSWEEK'S COVER CONGRESS OVERWHELMINGLY PASSED THE RELIGIOUS FREEDOM RESTORATION ACT LAST FALL AFTER VIGOROUS LOBBYING EFFORTS FROM VIRTUALLY EVERY PART OF THE RELIGIOUS SPECTRUM THE ACT PROTECTS RELIGION FROM RESTRICTIVE LAWS UNLESS GOVERNMENT CAN SHOW A COMPELLING INTEREST AND IMPOSES THE RESTRICTION IN THE LEAST BURDENSOME WAY A FEW WEEKS AGO A PROVISION IN A HOUSE BILL THAT COULD HAVE FORCED HOMESCHOOLERS TO OBTAIN THE SAME TEACHING CREDENTIALS REQUIRED OF PUBLIC SCHOOL TEACHERS DIED A SWIFT DEATH WHEN CONGRESSIONAL SWITCHBOARDS WERE FLOODED WITH CALLS OF PROTEST FROM HOMESCHOOLING CONSTITUENTS MANY OF THEM EVANGELICAL CHRISTIANS FED UP WITH THE EDUCATIONAL AND MORAL STANDARDS OF THE PUBLIC SCHOOLS ONE OF THE MOST SIGNIFICANT POLITICAL DEVELOPMENTS OF THE PAST YEAR OR TWO IS THE EMERGING ALLIANCE BETWEEN ROMAN CATHOLICS AND EVANGELICAL PROTESTANTS JOINED SOMETIMES BY ORTHODOX JEWS LAST WEEK A GROUP OF PROMINENT CLERGY FROM BOTH GROUPS ISSUED A STATEMENT PLEDGING TO COOPERATE ON POLITICAL ISSUES OF COMMON CONCERN SUCH AS ABORTION SCHOOL CHOICE AND STRENGTHENING THE TRADITIONAL FAMILY THE STATEMENT CITES A GROWING CONVERGENCE ON SUCH ISSUES THERE ARE 58 MILLION CATHOLICS IN THE US AND 24 MILLION EVANGELICALS A LARGE SEGMENT OF THE ELECTORATE THIS IS THE WAVE OF THE FUTURE SAYS RALPH REED EXECUTIVE DIRECTOR OF PAT ROBERTSON'S CHRISTIAN COALITION IT IS AS SIGNIFICANT A COALITION TO THE FUTURE OF AMERICAN POLITICS AS THE UNIFICATION OF BLACKS AND JEWS DURING THE CIVIL RIGHTS STRUGGLE LAST YEAR THE SUPREME COURT RULED IN FAVOR OF A RELIGIOUS ORGANIZATION THAT WANTED TO RENT A LOCAL PUBLIC SCHOOL AUDITORIUM FOR AN AFTERHOURS FUNCTION STATES ESPECIALLY IN THE SOUTH ARE TRYING TO LEGISLATE PRAYER BACK INTO THE SCHOOLS IN THE WAKE OF A FAVORABLE FEDERAL COURT OF APPEALS RULING IN 1992 THE SUPREME COURT'S MOST IMPORTANT RELIGIOUS CASE THIS TERM CONCERNS THE CONSTITUTIONALITY OF A PUBLIC SCHOOL IN NEW YORK STATE ESTABLISHED TO EDUCATE THE DISABLED CHILDREN OF KIRYAS JOEL A VILLAGE OF HASIDIC JEWS IN ARGUING HIS CASE BEFORE THE COURT LAST WEDNESDAY NATHAN LEWIN THE ATTORNEY FOR KIRYAS JOEL SAID IT TURNS THE CONSTITUTION ON ITS HEAD TO SAY THAT THE FREE EXERCISE OF RELIGION BECOMES THE ONE IMPERMISSIBLE VICE ALL THIS WILL AGITATE THOSE MOST ARDENT FOR CHURCHSTATE SEPARATION BUT THERE ARE SOME REALITIES THEY OUGHT TO TRY TO COME TO GRIPS WITH THE UNITED STATES REMAINS ONE OF THE MOST RELIGIOUS NATIONS ON EARTH AND BY FAR THE MOST RELIGIOUS COUNTRY IN THE WESTERN WORLD NINE OUT OF 10 AMERICANS PROFESS A BELIEF IN GOD YET WE ARE ALSO A NATION THAT IN THE WAKE OF THE SCHOOL PRAYER DECISION SPENT THE THREE DECADES ACTIVELY EXPUNGING EVERY VESTIGE OF THE RELIGIOUS IMPULSE FROM PUBLIC LIFE AND DISCOURSE IT IS HARDLY A COINCIDENCE THAT THIS SAME PERIOD SAW THE RISE OF MANY SOCIAL PATHOLOGIES A REACTION FROM THIS COUNTRY'S RELIGIOUS TRADITION WAS INEVITABLE IT HAS ARRIVED SEE RELATED LETTER LETTERS TO THE EDITOR KEEP RELIGION SEPARATE IN ORDER TO PROTECT IT WSJ APRIL 21 1994 9404040053 YY94 MM04 9404210064 940408 LEISURE & ARTS BUSINESS BOOKSHELF A RANDOM STROLL DOWN MEMORY LANE BY SUSAN LEE ROBERT EISNER HAS A BAD CASE OF DENIAL HIS BOOK THE MISUNDERSTOOD ECONOMY WHAT COUNTS AND HOW TO COUNT IT HARVARD BUSINESS SCHOOL PRESS 222 PAGES 2295 IS WRITTEN AS IF THE WORLD WERE UNCHANGED SINCE THE 1960S AS IF 30ODD YEARS OF ECONOMIC EXPERIENCE AND DEBATE OVER THAT EXPERIENCE HAD NOT HAPPENED MR EISNER A PROFESSOR OF ECONOMICS AT NORTHWESTERN UNIVERSITY MADE A NAME FOR HIMSELF A WHILE BACK BY TALKING ABOUT THE MISTAKES IN FEDERAL ACCOUNTING PRACTICES HE CORRECTLY ARGUED THAT THESE PRACTICES DO NOT BUT SHOULD DISTINGUISH BETWEEN CURRENT OR OPERATING OUTLAYS AND CAPITAL EXPENDITURES THAT CONVENTIONAL MEASURES OF GROSS NATIONAL PRODUCT OMIT IMPORTANT NONMARKET OUTPUT SUCH AS HOUSEKEEPING AND THAT WE NEED A BETTER BROADER MEASURE OF WHAT CONSTITUTES NATIONAL SAVINGS HE QUICKLY RUNS THROUGH THESE ARGUMENTS AT THE BEGINNING OF THIS BOOK BUT THE REST UNFORTUNATELY IS A TRIP DOWN MEMORY LANE BACK IN THE '60S MANY PEOPLE THOUGHT THAT FEDERAL BUDGET DEFICITS WERE AN EXCELLENT STIMULANT TO ECONOMIC GROWTH NOW AFTER CONSIDERABLE EXPERIENCE WITH RELATIVELY LARGE AND CONSTANT BUDGET DEFICITS MOST PEOPLE ARE WARY OF THEM IN GENERAL AND CHARY ABOUT ANY STIMULUS EFFECT NO MATTER TO MR EISNER FOR HIM RUNNING BUDGET DEFICITS IS STILL AN EXCELLENT TOOL FOR REVITALIZING A SLUGGISH ECONOMY RECOGNIZING THIS WILL LEAD US TO THE CONCLUSION HOWEVER SHOCKING TO SOME THAT DEFICITS CAN BE GOOD FOR US HE SAYS THEY WILL BE GOOD IF THEY GENERATE PURCHASING POWER FOR THE PRODUCTS OF AMERICAN BUSINESS THAT WOULD OTHERWISE BE LACKING OR TAKE HIGH RATES OF INFLATION IN THE '60S MANY ECONOMISTS DISMISSED INFLATION AS HARMLESS NOW OF COURSE MOST ECONOMISTS BLAME SLOW GROWTH ON HIGH AND VARIABLE RATES OF INFLATION AND REALIZE THAT INFLATION IS DANGEROUS BUT NOT MR EISNER FOR HIM MODERATE INFLATION EVEN UP TO A 10 OR 12 ANNUAL RATE IS QUITE OK AND POLICY ACTIONS SHOULD BE UNDERTAKEN WITHOUT HINDRANCE FROM A BUGABOO OF INFLATION THEN THERE IS THE QUESTION OF SOCIAL SECURITY AND OTHER GOVERNMENT TRANSFER PROGRAMS FOR SENIOR CITIZENS THIRTY YEARS AGO PEOPLE DIDN'T WORRY ABOUT OVERDOING EITHER GOVERNMENT SPENDING OR REDISTRIBUTING INCOME NOW OF COURSE AFTER THREE DECADES OF INCREASING ENTITLEMENTS GOING TO THE OLD PEOPLE ARE WORRIED THAT THIS INTERGENERATIONAL TRANSFER IS SLIGHTING TODAY'S WORKERS TO THE ENORMOUS BENEFIT OF TODAY'S RETIREES MOREOVER MANY ECONOMISTS ARE CONCERNED ABOUT THE REDISTRIBUTION OF INCOME AWAY FROM THE YOUNG AND TOWARD THE ELDERLY CURRENTLY FOR EVERY 1 SPENT ON CHILDREN 14 GOES TO SENIORS BUT NOT MR EISNER INDEED HE WOULD JUST INCREASE THE LEVEL OF ENTITLEMENTS GOING TO YOUNG AND OLD ALIKE HE SUGGESTS MORE MONEY FOR PRENATAL CARE CHILD CARE EDUCATION JOB TRAINING AND OF COURSE THE ENVIRONMENT WHERE WILL THE MONEY COME FROM YOU GUESSED IT MORE DEBT GREATER PUBLIC DEBT ADDS TO PRIVATE PURCHASING POWER AND MAY FINANCE THE CREATION OF MORE PUBLIC CAPITAL MR EISNER'S MOST COMICAL DENIAL FORMS THE POINT OF HIS BOOK IN THE EARLY '60S ECONOMISTS WERE HOT ON SOMETHING CALLED THE PHILLIPS CURVE WHICH WAS THOUGHT TO DESCRIBE A RELATIONSHIP BETWEEN UNEMPLOYMENT AND INFLATION THAT IS FOR A LITTLE MORE INFLATION AN ECONOMY COULD BUY A LITTLE MORE EMPLOYMENT IN THE LATE '60S TWO ECONOMISTS MILTON FRIEDMAN AND EDMUND PHELPS DISCOVERED THAT THERE WAS NO SUCH TRADE OFF THE ECONOMY HAD A NATURAL RATE OF UNEMPLOYMENT AND ANY MONETARY STIMULUS TO TRY TO LOWER UNEMPLOYMENT BELOW THAT RATE WOULD ONLY RESULT IN MORE INFLATION OF COURSE IN THE '70S THEIR THEORY WAS AMPLY PROVED WHEN THE ECONOMY EXPERIENCED HIGH RATES OF BOTH UNEMPLOYMENT AND INFLATION SINCE THAT TIME ECONOMISTS HAVE BEEN TRYING TO DISCOVER THE CAUSES OF THE NATURAL RATE OF UNEMPLOYMENT A TASK THAT IS ESPECIALLY IMPORTANT NOW SINCE THE NATURAL RATE APPEARS TO HAVE INCREASED FROM AROUND 4 TO SEVERAL PERCENTAGE POINTS HIGHER BOTH IN THE US AND OTHER INDUSTRIAL DEMOCRACIES THOUSANDS OF BRAIN HOURS AND HUNDREDS OF STUDIES HAVE BEEN DEVOTED TO THIS PROBLEM RECENTLY AND MOST NOTABLY MR PHELPS PUSHED THIS ARGUMENT INTO NEW TERRITORY WITH THE PUBLICATION OF HIS BOOK STRUCTURAL SLUMPS HE ARGUED THAT EMPLOYERS PAY AN INCENTIVE WAGE TO PROMOTE LOYALTY AND PREVENT SHIRKING THAT BUMPS WAGES ABOVE THEIR MARKETCLEARING RATE MOREOVER HIGHER PAYROLL AND INCOME TAXES HAVE BUMPED THOSE WAGES EVEN HIGHER THEREBY INCREASING THE EFFECTIVE COST OF HIRING AND WITH IT INCREASING STRUCTURAL UNEMPLOYMENT BUT MR EISNER BLITHELY IGNORES THIS HE CALLS THE NATURAL RATE OF UNEMPLOYMENT THE GREATEST MISCONCEPTION OF ALL THIS STUBBORNNESS IN RECOGNIZING WHAT HAS HAPPENED IN THE WORLD SINCE THE '60S INDEED IN RECOGNIZING THAT THE DISCUSSION HAS MOVED ON MAKES MR EISNER THE WORST KIND OF OLD FOGEY ECONOMICS HAS ENOUGH TROUBLE EXPLAINING HOW THE WORLD WORKS WITHOUT HAVING TO REOPEN DEBATES THAT HAVE LONG BEEN SETTLED MS LEE IS AN ECONOMIST SEE RELATED LETTER LETTERS TO THE EDITOR AN OLD FOGEY NOT ON THIS COURT WSJ APRIL 21 1994 9404080098 YY94 MM04 9404210063 940405 LEISURE & ARTS BOOKSHELF NO LONG SENTENCES PLEASE BY DAVID BROOKS THEY WATCHED THAT FOR A MINUTE DAN TOOK OFF HIS HAT AND HUNG IT ON HIS KNEE MY FACE ACHES SAID LOUISE DAN WENT HOME IN HIS CRUISER HE HAD A FRIED EGG SANDWICH AND A BOTTLE OF MILLER BEER HE LIVED IN A TURQUOISE AND WHITE MOBILE HOME OUTSIDE OF GRAFTON HE LOOKED AT THE NUDE SLIDES BUT THEY WERE TOO SMALL LOUISE PAINTED HER TOENAILS DAN HAD NOTICED THAT SHE PAINTED HER TOENAILS DARK RED HE IMAGINED HER DABBING AWAY IN SOME EMPTY ROOM OF THAT DRAFTY FARMHOUSE JETHRO TOOK OFF HIS JOHN DEERE CAP AND PLACED IT ON THE FORMICA TABLE NEXT TO HIS CAN OF MILLER HIS FACE ACHED HE WAS WATCHING THE WORLD WRESTLING FEDERATION ON THE TV HIS CORN FLAKES GREW SOGGY IN THE BOWL I'M THE ONLY PERSON WEST OF SCRANTON WHOSE LIFE HASN'T BEEN FICTIONALIZED BY A NOVELIST LIVING IN CONNECTICUT HE NOTED GLUMLY HIS PAL JIMMY RAY JOE BOB DIDN'T KNOW WHAT TO SAY HIS LIFE HAD BEEN FICTIONALIZED IN STORIES IN THE SEWANEE REVIEW THE CHICAGO REVIEW FICTION QUARTERLY AND 19 NOVELS WITH COMBINED SALES IN THE LOW DOUBLE FIGURES HE LIFTED HIS AMERICAN HARVESTER CAP HE SCRATCHED HIS HEAD HE GRUNTED AREN'T I AUTHENTIC ENOUGH I DRIVE A VEGA JETHRO KNEW THAT NOVELISTS LIKE TO WRITE ABOUT AUTHENTIC AMERICANS HE THOUGHT OF ALL THE YEARS HE'D LIVED IN THIS TINY MOBILE HOME HOPING IT WOULD IMPRESS ONE OF THE NOVELISTS WHO COME DOWN FROM THEIR RENOVATED BARNS THE TOP HALF OF HIS FACE ACHED EVEN MORE THAN THE BOTTOM HALF I DON'T THINK BOBBY JIM OVER BY WALLEYE LAKE HAS EVER BEEN FICTIONALIZED JIMMY RAY JOE BOB SAID IN A TONE HE HOPED WOULD BE COMFORTING ARE YOU KIDDING GARRISON KEILLOR'S GOT A STATUE OF BOBBY JIM IN HIS CENTRAL PARK WEST APARTMENT AND HE KNEELS DOWN AND PAYS HOMMAGE EVERY NIGHT BEFORE COUNTING HIS MONEY JIMMY RAY JOE BOB CLEANED HIS SHOTGUN AND REASSEMBLED THE TRANSMISSION OF HIS THRESHER HE WAS PONDERING JETHRO'S PROBLEM MAYBE YOU DON'T HAVE ENOUGH ENNUI TO CUT IT WITH THESE NOVELISTS YOU'VE GOT TO EMBODY THE POSTINDUSTRIAL ENNUI THAT PERVADES OUR POSTPOSTMODERN REALITY JETHRO'S RIGHT CHEEK ACHED EVEN MORE THAN THE REST OF THE TOP OF HIS FACE HE HAD METAENNUI HE PULLED OUT A POCKETKNIFE AND GUTTED A CATFISH THAT'S A GOOD EATIN' FISH JETHRO USED A LOT OF WORDS THAT ENDED IN APOSTROPHES HE CHANGED THE SUBJECT A LOT HE EMBODIED EVERY CLICHE IN THE MODERN NOVELIST'S BAG OF TRICKS HE GRABBED THE REMOTE CONTROL FROM HIS OVERALLS AND FLICKED ON THE HOME SHOPPING NETWORK HE TOOK A SIP OF MOJO FROM THE OLD HEE HAW MUG HE'D GOT WITH 12 FILLUPS AT THE PHILLIPS 66 I'VE LIVED MY LIFE IN SHORT SENTENCES ALL MY LIFE SHORT FLAT SENTENCES HOPELESS RAYMOND CARVER SENTENCES THE KIND THESE NOVELISTS ALL USE AND DESPITE ALL THIS EFFORT I HAVEN'T BEEN FICTIONALIZED ONCE JETHRO PULLED OUT HIS STUCKEY'S FREQUENT DINER CREDIT CARD AND SCRAPED IT AGAINST THE ALTERNATOR BELT THAT HAPPENED TO BE LYING ON THE ARMREST OF HIS LOUNGER THIS DRURY BOOK REALLY HAS YOU DOWN JIMMY RAY JOE BOB NOTED AFTER A SILENCE OF ABOUT FOUR HOURS IT WAS THE TRUTH JETHRO THOUGHT HE WOULD MAKE IT INTO THE DRURY BOOK FOR SURE HE'D HEARD THAT DRURY WAS EDUCATED AT BROWN UNIVERSITY AND THE UNIVERSITY OF IOWA HE KNEW DRURY LIVED IN CONNECTICUT DRURY HAD PUBLISHED IN HARPER'S THE MISSISSIPPI REVIEW AND THE NORTH AMERICAN REVIEW IT WAS THE PERFECT CURRICULUM VITAE FOR A NOVELIST WHO WOULD WANT TO WRITE ABOUT AN AUTHENTIC ENNUIDRIPPING BEERSWILLING SHOTGUNCLEANING SHORTSENTENCESPOUTING SUBJECTCHANGING DOWNATTHEHEELS MIDWESTERNER LIKE HIM WHEN HE RECEIVED TOM DRURY'S THE END OF VANDALISM HIS HOPES WERE RAISED THE BOOK FIT THE FORMULA MOREOVER THE AUTHOR PHOTO SHOWS MR DRURY SITTING ON A STAGE SOMEWHERE DISPLAYING A PAIR OF KNEELENGTH WELLINGTON BOOTS THE BOOK WAS HOMEY IT WAS SELFCONSCIOUSLY AUTHENTIC AND HERMETICALLY SEALED FROM THE REAL WORLD THAT A THE NEW YORKER READER WOULD KNOW SOMETHING ABOUT HICKWORLD BUT HE COULD FIND NO CHARACTER BASED ON HIMSELF HE RACED TO THE BACK WHERE DRURY HAS ALL THE CHARACTERS LISTED COLETTE SANDOVER ECCENTRIC MOTHER OF THREE OR BOREN MATTHEWS ANXIOUS MINISTER OR MARNIE RAINVILLE PAMELA ARDENT EXOTIC DANCER SUDDENLY JETHRO REALIZED THAT THE WRITERS HAD ADDED A WRINKLE TO THE OLD CLICHES FROM NOW ON ALL THE DEMAND WOULD BE FOR CHARACTERS WITH CHARMING QUIRKS THAT COULD BE DESCRIBED WITH DEADPAN HUMOR FROM NOW ON THE BOOKS WOULD BE FILLED WITH OUIJA BOARDS MAD PREACHERS AND FAINTLY COMIC SITUATIONS JETHRO LONGED FOR THE SIMPLE DAYS OF SHERWOOD ANDERSON HIS FACE ACHED BUT THEN A COMFORTING THOUGHT CAME TO HIM PEOPLE ON THE UPPER WEST SIDE OF MANHATTAN SIT AROUND READING BOOKS ABOUT FOLKS IN IOWA BUT FOLKS IN IOWA NEVER WASTE TIME READING BOOKS ABOUT PEOPLE ON THE UPPER WEST SIDE OF MANHATTAN NO MATTER HOW LOW YOU FEEL THERE'S ALWAYS SOMEONE WORSE OFF MR BROOKS IS DEPUTY EDITORIAL PAGE EDITOR OF THE WALL STREET JOURNAL EUROPE SEE RELATED LETTER LETTERS TO THE EDITOR GUTTING THE GUTLESS WSJ APRIL 21 1994 9404050074 YY94 MM04 9404210062 940421 BUSINESS BRIEF CLOROX CO NET INCOME INCREASED 9 IN THE FISCAL THIRD PERIOD CLOROX CO OAKLAND CALIF CITING STRONG GROWTH IN SHIPMENTS OF ITS HOUSEHOLD PRODUCTS REPORTED A 9 INCREASE IN FISCALTHIRDQUARTER NET INCOME FOR THE QUARTER ENDED MARCH 31 CLOROX REPORTED NET INCOME OF 495 MILLION OR 93 CENTS A SHARE COMPARED WITH 454 MILLION OR 85 CENTS A SHARE A YEAR EARLIER SALES ROSE 11 TO 4819 MILLION FROM 4356 MILLION SHIPMENTS WERE UP IN VIRTUALLY ALL KEY MARKETS CLOROX SAID AND EARNINGS ALSO BENEFITTED FROM COSTREDUCTION PROGRAMS CLOROX SHARES JUMPED 875 CENTS TO 48 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9404210061 940421 BUSINESS BRIEF INTERSOLV INC Q+E SOFTWARE IS ACQUIRED IN PACT VALUED AT 36 MILLION INTERSOLV INC A ROCKVILLE MD PROVIDER OF SOFTWARE TO DEVELOP DESKTOP AND WORKSTATION APPLICATIONS SAID IT ACQUIRED CLOSELY HELD Q+E SOFTWARE INC IN A CASH AND STOCK TRANSACTION VALUED AT 36 MILLION UNDER THE TERMS OF THE AGREEMENT INTERSOLV PAID 53 MILLION CASH AND ABOUT 24 MILLION SHARES OF INTERSOLV STOCK IN NASDAQ STOCK EXCHANGE TRADING INTERSOLV CLOSED AT 12 UNCHANGED Q+E BASED IN RALEIGH NC SUPPLIES DATABASE ACCESS TECHNOLOGY TO THE SOFTWARE INDUSTRY INTERSOLV SAID IT EXPECTS TO TAKE A ONETIME 5 MILLION TO 7 MILLION CHARGE IN ITS FOURTH QUARTER ENDING APRIL 30 FOR THE COST OF INTEGRATING Q+E FOR ITS 1993 FISCAL YEAR INTERSOLV REPORTED A LOSS OF 119 MILLION OR 1 A SHARE ON 804 MILLION IN REVENUE THE RESULTS INCLUDED A 166 MILLION ONETIME CHARGE RELATED TO A WRITEOFF OF OUTDATED SOFTWARE A SPOKESMAN SAID INTERSOLV SAID THE PACT WILL BOOST ANNUAL REVENUE TO MORE THAN 100 MILLION 9404210060 940421 WHAT'S NEWS BUSINESS AND FINANCE KIDDER FIRED A BONDDERIVATIVES EXECUTIVE EARLIER THIS YEAR AFTER CONCLUDING HE WAS ALSO WORKING FOR A RIVAL FIRM WHILE WORKING AT KIDDER IN ANOTHER SIGN OF PROBLEMS IN THE GE UNIT'S BOND OPERATIONS THE DISMISSAL OF THE EXECUTIVE APPEARS TO BE UNRELATED TO THE RECENT FIRING OF KIDDER'S GOVERNMENTBOND CHIEF GE'S FIRSTQUARTER PROFIT FROM CONTINUING OPERATIONS FELL 16 REFLECTING A CHARGE FOR ALLEGED FICTITIOUS TRADES AT ITS INVESTMENT BANKING UNIT BANKERS TRUST NEW YORK DISCLOSED THAT IT GOT ALMOST THREEFOURTHS OF ITS FIRSTQUARTER PROFIT FROM THE SALE OF DERIVATIVE PRODUCTS MEANWHILE MEAD BECAME THE THIRD COMPANY IN RECENT WEEKS TO REPORT LOSSES FROM DERIVATIVES PURCHASED FROM THE BIG BANK THE COMPTROLLER OF THE CURRENCY IS SIGNALING TIGHTER RULES FOR NATIONALLY CHARTERED BANKS' DERIVATIVES TRADING CATERPILLAR REPORTED ITS BEST FIRST QUARTER EVER BUT WALL STREET DROVE DOWN THE COMPANY'S STOCK ALONG WITH THOSE OF OTHER CYCLICAL COMPANIES INVESTORS SOLD CYCLICAL STOCKS BECAUSE OF FEARS ABOUT RISING INTEREST RATES THE DOW JONES INDUSTRIALS TUMBLED 2111 POINTS TO 359871 THE TREASURY'S 30YEAR ISSUE GAINED MORE THAN 1/2 POINT ITS YIELD WAS 731 CLINTON'S ECONOMIC ADVISERS ARE RECOMMENDING THAT HE NOMINATE JANET YELLEN A MACROECONOMIST FROM THE UNIVERSITY OF CALIFORNIA AT BERKELEY TO A VACANCY ON THE FEDERAL RESERVE BOARD SHE HAS CRITICIZED THE FED'S RECENT MOVES TO RAISE INTEREST RATES AT&T REPORTED A STRONG FIRST QUARTER AS EARNINGS CLIMBED 17 OVER PREVIOUSLY RESTATED EARNINGS ON REVENUE GROWTH OF MORE THAN 5 AMERITECH ASSIGNED PRESIDENT AND CHIEF EXECUTIVE RICHARD NOTEBAERT THE ADDITIONAL TITLE OF CHAIRMAN GM IS HIRING TEMPORARY WORKERS TO STAFF SOME FACTORIES BECAUSE IT'S UNABLE TO MOVE 8300 IDLED WORKERS WHO ARE RECEIVING VIRTUALLY FULL WAGES HOUSING STARTS SURGED 121 IN MARCH AS CONSTRUCTION REBOUNDED FROM SEVERE COLD WEATHER AND STORMS IN THE FIRST TWO MONTHS OF THE YEAR REPUBLICAN SEN PETE DOMENICI PLANS TO OPPOSE ADDITIONAL CUTS IN FEDERAL DISCRETIONARY SPENDING AND WILL BACK CLINTON'S 1995 BUDGET OUTLINE LOTUS REPORTED A FIRSTQUARTER PROFIT SURGE OF 73 AIDED BY SALES OF PROFITABLE COMMUNICATIONS SOFTWARE BUT LOTUS SHARES WERE BATTERED ON LOWERTHANEXPECTED REVENUE GROWTH MEXICO'S SHORTTERM INTEREST RATES SOARED TO THE HIGHEST LEVEL IN MORE THAN A YEAR SENDING STOCKS REELING FOR A SIXTH CONSECUTIVE LOSS COMPAQ'S PROFIT MORE THAN DOUBLED IN THE FIRST QUARTER ON A 41 SALES JUMP FAR EXCEEDING ANALYSTS' EXPECTATIONS FOR THE COMPUTER MAKER PFIZER AND SCHERINGPLOUGH POSTED HIGHER FIRSTQUARTER EARNINGS REFLECTING STRENGTH IN NEW PRODUCT SALES BRISTOLMYERS SQUIBB HAD A NARROW GAIN AS GROWTH IN DRUG SALES WAS OFFSET BY A DROP IN CONSUMERPRODUCT SALES ITT SAID FIRSTQUARTER NET ROSE 25 REFLECTING GAINS IN ALL OF ITS BUSINESS SEGMENTS AND OPERATING RESULTS THAT EXCEEDED ANALYSTS' EXPECTATIONS ITT'S CEO SAID RESULTS REFLECT THE IMPROVED US ECONOMY AS WELL AS CONTINUED COSTIMPROVEMENT PROGRAMS WOOLWORTH HIRED AN INTERIM CHIEF FINANCIAL OFFICER WITH EXPERIENCE IN HELPING TROUBLED COMPANIES AS THE RETAILER SORTS THROUGH AN INTERNAL PROBE OF ALLEGED ACCOUNTING IRREGULARITIES BONDS LEHMAN BROTHERS TREASURY INDEX 509835 UP 2889 COMMODITIES OIL 1682 A BARREL UP 33 CENTS DOW JONES FUTURES INDEX 13548 OFF 040 SPOT INDEX 13050 UP 005 DOLLAR 10303 YEN OFF 002 16883 MARKS OFF 00114 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 9404210059 940421 BUSINESS BRIEF SANTA FE PACIFIC CORP FIRSTPERIOD PROFIT FELL 46 BUT ROSE ON OPERATING BASIS SANTA FE PACIFIC CORP SCHAUMBURG ILL SAID FIRSTQUARTER NET INCOME FELL 46 MAINLY REFLECTING A ONETIME GAIN IN THE YEAREARLIER QUARTER OPERATING PROFIT ROSE ABOUT 12 NET INCOME WAS 681 MILLION OR 36 CENTS A SHARE COMPARED WITH 1271 MILLION OR 68 CENTS A SHARE A YEAR EARLIER THE RECENT QUARTER INCLUDED A PRETAX GAIN OF 342 MILLION RELATED TO THE SALE OF AN INVESTMENT AND A FAVORABLE LITIGATION SETTLEMENT THE 1993 QUARTER INCLUDED A PRETAX GAIN OF 1454 MILLION RELATED TO SALE OF RAIL LINES IN SOUTHERN CALIFORNIA LED BY STRONG TRAFFIC GROWTH AT THE SANTA FE RAILWAY SUBSIDIARY REVENUE ROSE 11 TO 7221 MILLION FROM 6533 MILLION THE RAILWAY GROWTH AND OPERATING EFFICIENCIES ALSO HELPED BOOST OPERATING PROFIT TO 1186 MILLION FROM 1055 MILLION SANTA FE ALSO HAS GOLDMINING AND PIPELINE OPERATIONS AND LAST WEEK ANNOUNCED PLANS TO OFFER ABOUT 15 OF THE GOLDMINING SUBSIDIARY TO THE PUBLIC A MOVE THAT COULD LEAD TO A SPINOFF IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING SANTA FE SHARES CLOSED DOWN 50 CENTS AT 21875 9404210058 940421 BUSINESS BRIEF STONE & WEBSTER INC CONSTRUCTION COMPANY POSTS BIG LOSS FOR FIRST QUARTER STONE & WEBSTER INC REPORTED A LARGE LOSS FOR THE FIRST QUARTER COMPARED WITH A YEAREARLIER PROFIT AS IT STRUGGLES WITH A DECLINE IN REVENUE LOWER PROFIT MARGINS AND COSTS RELATED TO WORKFORCE REDUCTIONS THE COMPANY ALSO SAID IT EXPECTS TO REPORT A LOSS FOR THE YEAR THE NEW YORKBASED ENGINEERING CONSTRUCTION AND CONSULTING COMPANY HAD EARLIER SAID IT WOULD CUT 350 POSITIONS AT ITS STONE & WEBSTER ENGINEERING CORP UNIT AS OF THE MIDDLE OF MARCH THE COMPANY HAD A TOTAL WORK FORCE OF ABOUT 5000 IT SAID IT MAY NOW HAVE TO CUT ADDITIONAL JOBS AT THE UNIT AND SPEND A FURTHER 10 MILLION IN SEVERANCE COSTS DUE TO CONTINUED DELAYS IN THE START UP OF NEW WORK AND THE SUSPENSION OF A SIGNIFICANT PROJECT LOSSES IN THE FIRST QUARTER WERE 129 MILLION OR 86 CENTS A SHARE COMPARED WITH A PROFIT OF 27 MILLION OR 18 CENTS A SHARE THE LATEST PERIOD INCLUDES A CHARGE OF 34 MILLION OR 23 CENTS A SHARE FOR SEVERANCE COSTS THE PREVIOUS PERIOD INCLUDED A GAIN OF 23 MILLION OR 16 CENTS A SHARE DUE TO AN ACCOUNTING CHANGE REVENUE SLUMPED 26 TO 537 MILLION FROM 728 MILLION 9404210057 940421 BUSINESS BRIEF AK STEEL CORP EXPLOSION AT OHIO PLANT KILLS FOUR MAINTENANCE WORKERS FOUR WORKERS WERE KILLED IN AN EXPLOSION AT AK STEEL CORP'S MIDDLETOWN OHIO PLANT THE WORKERS WERE EMPLOYED BY MCGRAWKOKOSING INC A MAINTENANCE AND INDUSTRIAL CONTRACTOR ALSO BASED IN MIDDLETOWN THEY WERE IN THE BYPRODUCTS AREA OF THE COKE PLANT WHERE PLANT WASTE IS RECYCLED WHEN THE EXPLOSION OCCURRED YESTERDAY MORNING THE AREA HAD BEEN SHUT DOWN SINCE SUNDAY FOR MAINTENANCE NONE OF THE PLANT'S 4000 WORKERS WAS NEARBY AT THE TIME OF THE EXPLOSION AN AK STEEL SPOKESMAN SAID THE SPOKESMAN COULD NOT ESTIMATE THE SEVERITY OF DAMAGE BUT SAID THE EXPLOSION DID NOT AFFECT PLANT OPERATIONS THE CAUSE WASN'T KNOWN BUT WAS UNDER INVESTIGATION BY AK AND THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION 9404210056 940421 BUSINESS BRIEF SEQUENT COMPUTER SYSTEMS INC OREGON FIRM EXPECTS TO POST 38 RISE IN 1STPERIOD NET SEQUENT COMPUTER SYSTEMS INC CITING ITS NEW STRATEGY OF SELLING BIGGER COMPUTER SYSTEMS TO BIGGER CUSTOMERS EXPECTS TO POST A 38 SURGE IN FIRSTQUARTER NET INCOME AND A 21 INCREASE IN REVENUE SAID CASEY POWELL CHAIRMAN AND CHIEF EXECUTIVE FOR THE QUARTER ENDED APRIL 3 SEQUENT EXPECTS TO REPORT NET INCOME OF ABOUT 47 MILLION OR 15 CENTS A SHARE ON REVENUE OF 94 MILLION IN THE YEAREARLIER QUARTER NET WAS 34 MILLION OR 12 CENTS A SHARE ON REVENUE OF 776 MILLION THE EARNINGS COME AFTER TWO ROUGH YEARS FOR THE BEAVERTON ORE MAKER OF SYMMETRICAL MULTIPROCESSING COMPUTERS FOLLOWING A SERIES OF SLUGGISH QUARTERS SEQUENT LAID OFF 85 WORKERS OR 5 OF ITS WORK FORCE THIS YEAR BUT IT CALLED EMPLOYEES BACK DURING THE RECENT QUARTER SEQUENT NOW HAS 1661 WORKERS COMPARED WITH 1629 AFTER THIS YEAR'S LAYOFFS 9404210055 940421 BUSINESS BRIEF CHRYSLER CORP AUTO MAKER ORDERS RECALL TO EXPAND TOKYO OPERATION CHRYSLER CORP SAID IT'S RECALLING 1600 1994 FOURWHEELDRIVE DODGE DAKOTA TRUCKS TO REPAIR A DEFECT THAT COULD CAUSE A BOLT IN THE UPPER SUSPENSION TO BREAK WHICH MAY CAUSE THE VEHICLE TO BECOME DIFFICULT TO CONTROL THE AUBURN HILLS MICH AUTO MAKER SAID THERE WERE NO REPORTS OF ACCIDENTS OR INJURIES RELATED TO THE PROBLEM CHRYSLER SAID THE BOLTS WERE WEAKENED BY IMPROPER HEAT TREATMENT BY A SUPPLIER IT DECLINED TO IDENTIFY SEPARATELY CHRYSLER SAID IT WILL OPEN A NEW ASIA PACIFIC REGIONAL OFFICE AND EXPAND ITS TOKYO CORPORATE OFFICE CHRYSLER SAID THE REGIONAL OFFICE WILL OVERSEE SALES MARKETING AND SERVICE IN JAPAN TAIWAN AND AUSTRALIA THE EXPANSION WILL ALLOW CHRYSLER TO WORK MORE CLOSELY WITH ITS DISTRIBUTORS AND LOCAL DEALERS 9404210054 940421 BUSINESS BRIEF KMART CORP PAYLESS DRUGSTORE UNIT SALE COMPLETED IN 1 BILLION DEAL KMART CORP SAID IT COMPLETED THE SALE OF ITS PAYLESS DRUGSTORE UNIT TO A LOS ANGELES INVESTMENT FIRM THAT OWNS THRIFTY DRUG STORES IN A TRANSACTION VALUED AT MORE THAN 1 BILLION KMART WILL RECEIVE 595 MILLION IN CASH AND 100 MILLION IN DEBT SECURITIES OF THE NEWLY FORMED THRIFTY PAYLESS HOLDINGS INC WHICH IS CONTROLLED BY INVESTOR LEONARD GREEN'S MERCHANTBANKING FIRM KMART BASED IN TROY MICH ALSO WILL GET A 46 STAKE IN THE HOLDING COMPANY IN ADDITION THRIFTY PAYLESS HOLDINGS FORMERLY CALLED TCH CORP WILL ASSUME OR REFINANCE ABOUT 170 MILLION OF PAYLESS DEBT THE MERGED THRIFTY AND PAYLESS CHAINS WILL BECOME THE NATION'S SECONDLARGEST DRUGSTORE CHAIN BEHIND WALGREEN CO WITH MORE THAN 1000 STORES IN 11 STATES AND SALES OF ABOUT 47 BILLION THIS YEAR YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING KMART SHARES CLOSED UNCHANGED AT 1825 9404210052 940421 BUSINESS BRIEF ACME ELECTRIC CORP PRETAX CHARGE OF 75 MILLION RECORDED FOR LATEST QUARTER ACME ELECTRIC CORP SAID IT WILL REPORT A PRETAX CHARGE OF 75 MILLION FOR ITS THIRD QUARTER ENDED APRIL 1 TO RESTRUCTURE ITS AEROSPACE BATTERY BUSINESS THE RESTRUCTURED OPERATION WILL MAKE FIBER NICKEL CADMIUM BATTERIES FOR AIRCRAFT THE TECHNOLOGY WAS DEVELOPED FOR AUTOMOBILES IN A JOINT VENTURE INCLUDING DAIMLERBENZ AG AND VOLKSWAGEN AG AND LICENSED TO ACME IN 1987 ACME BASED IN EAST AURORA NY MAKES THE BATTERIES AT ITS ADVANCED ENERGY SYSTEMS SUBSIDIARY IN TEMPE ARIZ AND MAKES AN ELECTRICAL SYSTEM FOR THE BATTERIES AT ITS ACMEURDC INC SUBSIDIARY IN WEST JORDAN UTAH THE TWO OPERATIONS WILL BE CONSOLIDATED UNDER AN AEROSPACE DIVISION LOCATED IN TEMPE ACME WHICH DESIGNS AND MANUFACTURES POWERCONVERSION PRODUCTS FOR ELECTRONIC AND ELECTRICAL SYSTEMS SAID THE CHANGES WILL BE COMPLETED BY OCT 1 IN THE YEAREARLIER FISCAL THIRD QUARTER ACME HAD A LOSS OF 296000 OR SIX CENTS A SHARE ON REVENUE OF 182 MILLION 9404210051 940421 BUSINESS BRIEF BAUSCH & LOMB INC POLYMER TECHNOLOGY WINS APPROVAL FOR SCLERAL LENS BAUSCH & LOMB INC'S POLYMER TECHNOLOGY CORP UNIT SAID IT RECEIVED APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION FOR ITS BOSTON SCLERAL LENS A CONTACT LENS DEVELOPED FOR PEOPLE WITH SEVERE CORNEAL DAMAGE THE LENSES ABOUT THE SIZE OF A QUARTER WILL SELL FOR BETWEEN 2500 AND 3000 A PAIR THEY WILL BE OFFERED THROUGH THE BOSTON SCLERAL LENS FOUNDATION WHICH WAS FOUNDED BY THE LENSES' DEVELOPER DR PERRY ROSENTHAL ASSISTANT CLINICAL PROFESSOR OF OPHTHALMOLOGY AT THE HARVARD MEDICAL SCHOOL THE LENSES WILL BE PRESCRIBED BY DOCTORS TRAINED AT THE FOUNDATION WHICH IS IN BOSTON THE LENSES ARE DESIGNED FOR PEOPLE SUFFERING FROM CORNEAL DISEASE OR INJURY SO SEVERE THE DAMAGE CANNOT BE CORRECTED WITH GLASSES CONVENTIONAL CONTACT LENSES OR IN SOME CASES SURGERY 9404210050 940421 INTERNATIONAL BRIEF SAMSUNG GROUP SOUTH KOREA CONCERN TO PICK NISSAN OR TOYOTA AS PARTNER SOUTH KOREAN CONGLOMERATE SAMSUNG GROUP SAID IT HAS NARROWED THE LIST OF POSSIBLE FOREIGN PARTNERS FOR AN AUTOMAKING VENTURE TO JAPAN'S NISSAN MOTOR CO AND TOYOTA MOTOR CORP SAMSUNG HAS BEEN STUDYING VOLKSWAGEN OF GERMANY JAPAN'S NISSAN AND TOYOTA BUT SAMSUNG WILL CHOOSE ITS ONE PARTNER BETWEEN THE TWO JAPANESE COMPANIES A COMPANY SPOKESMAN SAID THE SPOKESMAN DENIED A LOCAL PRESS REPORT THAT THE CONGLOMERATE HAS ALREADY SELECTED NISSAN AS ITS PARTNER WE HAVE MADE NO DECISION ON THAT REGARD SAID THE SPOKESMAN ACCORDING TO A SPOKESMAN AT THE MINISTRY OF TRADE INDUSTRY AND ENERGY THE MINISTRY WILL DECIDE WHETHER TO ALLOW SAMSUNG TO ENTER THE AUTO BUSINESS AFTER REVIEWING A REPORT ON THE KOREAN MOTOR INDUSTRY IN APRIL SAMSUNG'S BID TO ENTER THE INDUSTRY HAS TRIGGERED CONTROVERSY IN THE PAST MONTHS AS EXISTING AUTO MAKERS INCLUDING HYUNDAI MOTOR CO KIA MOTORS CORP AND DAEWOO MOTOR CO OPPOSE THE NEW ENTRY 9404210049 940421 BUSINESS BRIEF GEORGIAPACIFIC CORP FIRSTQUARTER PROFIT FELL 2 DESPITE ASSET SALE UNIT GAIN GEORGIAPACIFIC CORP DESPITE A LARGE GAIN FROM AN ASSET SALE AND A SOLID PERFORMANCE IN ITS BUILDINGPRODUCTS DIVISION POSTED A 2 DROP IN FIRSTQUARTER PROFIT THE ATLANTABASED FORESTPRODUCTS CONCERN SAID NET INCOME TOTALED 40 MILLION OR 45 CENTS A SHARE COMPARED WITH 41 MILLION OR 47 CENTS A SHARE A YEAR EARLIER REVENUE ROSE ALMOST 1 TO 296 BILLION FROM 294 BILLION THE QUARTER INCLUDED A GAIN OF 34 MILLION OR 38 CENTS A SHARE FROM THE SALE OF THE COMPANY'S ENVELOPE AND ROOFING MANUFACTURING BUSINESS EXCLUDING THAT GAIN AS WELL AS OTHER ONETIME ADJUSTMENTS IN BOTH THE 1994 AND 1993 QUARTERS OPERATING PROFIT TOTALED 22 MILLION OR 25 CENTS A SHARE COMPARED WITH 44 MILLION OR 50 CENTS A SHARE A YEAR EARLIER GEORGIAPACIFIC REPORTED WHAT IT CHARACTERIZED AS A STRONG PERFORMANCE IN ITS BUILDINGPRODUCTS DIVISION WHERE FIRSTQUARTER PROFIT TOTALED 247 MILLION STILL THAT WAS DOWN FROM 309 MILLION IN THE YEAREARLIER PERIOD AN OPERATING LOSS IN THE PULP AND PAPER DIVISION NARROWED TO 53 MILLION FROM 67 MILLION A YEAR EARLIER THE COMPANY ALSO SAID IT MADE A 37 MILLION PAYMENT TO THE INTERNAL REVENUE SERVICE IN THE QUARTER TO SETTLE THE 1989 AND 1990 TAX YEARS 9404210048 940421 MARKETING BRIEF NOTED NEWSPAPERS DOW JONES & CO IS INSTALLING COLOR PRINTING EQUIPMENT AT ITS 18 US PRINTING PLANTS AND THE WALL STREET JOURNAL EXPECTS TO OFFER ADVERTISERS FOURCOLOR ADS ON AS MANY AS SIX PAGES A DAY IN EARLY 1996 PETER KANN CHAIRMAN AND CHIEF EXECUTIVE TOLD THE ANNUAL MEETING MR KANN SAID DOW JONES EXPECTS 1994 TO BE ANOTHER YEAR OF GOOD EARNINGS IMPROVEMENT FOLLOWING THE STRONG FIRSTQUARTER RESULTS PREVIOUSLY ANNOUNCED HE ALSO NOTED THAT SMARTMONEY THE JOURNAL'S PERSONALFINANCE MAGAZINE LAUNCHED IN 1992 AS A JOINT VENTURE WITH HEARST CORP SHOULD REACH A CIRCULATION OF 500000 BY MIDYEAR BROADWAY RECORD WALT DISNEY CO SAID ITS NEW STAGE MUSICAL BEAUTY AND THE BEAST SET A RECORD FOR THE HIGHEST SINGLEDAY TICKET SALES OF ANY SHOW IN BROADWAY HISTORY DISNEY SAID IT SOLD 603494 OF TICKETS TUESDAY THE DAY AFTER THE SHOW OPENED THE TAKE TOPPED THE PREVIOUS RECORD OF 548460 SET BY TOMMY ONE DAY LAST JUNE PAYTV BRAZILIAN PAYTV FIRM TVA SONY PICTURES ENTERTAINMENT WARNER BROS INTERNATIONAL TELEVISION DISTRIBUTION HOME BOX OFFICE AND OLE COMMUNICATIONS INC WILL TEAM UP TO LAUNCH HBO BRASIL A PAYTV SERVICE THAT WILL BE LAUNCHED IN BRAZIL IN JULY THE NETWORK WILL BE MODELED AFTER HBO OLE WHICH IS AVAILABLE TO SPANISHSPEAKING LATIN AMERICA AND ITS PROGRAMMING WILL BE DUBBED OR SUBTITLED IN PORTUGUESE 9404210047 940421 BUSINESS BRIEF DIME SAVINGS BANK OF NEW YORK PROFIT POSTED FOR 1ST QUARTER FOLLOWING A YEARAGO LOSS DIME SAVINGS BANK OF NEW YORK REPORTED A FIRSTQUARTER PROFIT COMPARED WITH A YEARAGO LOSS PARTLY REFLECTING HIGHER INTEREST AND FEE INCOME AS WELL AS SPECIAL ITEMS IN BOTH PERIODS THE BANK SAID PROFIT WAS 209 MILLION OR 32 CENTS A SHARE COMPARED WITH A LOSS OF 6 MILLION OR 11 CENTS A SHARE A YEARAGO THE LATEST QUARTER INCLUDES A 93 MILLION TAX BENEFIT WHILE RESULTS WERE ADVERSELY AFFECTED A YEAR AGO DUE TO AN 86 MILLION CHARGE FOR ACCOUNTING CHANGES THE AVERAGE NUMBER OF OUTSTANDING SHARES WAS 566 MILLION UP FROM 232 MILLION IN THE 1993 PERIOD THE PROVISION FOR LOAN LOSSES FELL TO 93 MILLION FROM 119 MILLION A YEAR EARLIER NONPERFORMING ASSETS AT MARCH 31 STOOD AT 3305 MILLION DOWN 64 FROM 9154 MILLION A YEAR AGO 9404210046 940421 BUSINESS BRIEF STANLEY WORKS PROFIT ROSE 77 IN 1ST PERIOD AS FIRM'S MARKETS IMPROVED STANLEY WORKS REPORTED A 77 INCREASE IN FIRSTQUARTER NET INCOME AS THE COMPANY BENEFITED FROM STRENGTHENING MARKETS BUOYED BY THE ECONOMY AND A CONTINUED FOCUS ON PRODUCTIVITY THE NEW BRITAIN CONN MAKER OF TOOLS AND HARDWARE SAID PROFIT ROSE TO 256 MILLION OR 57 CENTS A SHARE FROM 145 MILLION OR 32 CENTS A SHARE A YEAR EARLIER THE YEAREARLIER QUARTER INCLUDED AN 85 MILLION CHARGE FOR POSTEMPLOYMENT BENEFITS WITHOUT THIS CHARGE THE COMPANY SAID EARNINGS WOULD HAVE RISEN 11 SALES REACHED A FIRSTQUARTER RECORD RISING 58 TO 5857 MILLION FROM 5534 MILLION THE COMPANY SAID THE STRENGTH IN ITS INDUSTRIAL AND CONSTRUCTION MARKETS SHOULD CONTINUE IT ALSO EXPECTS IMPROVEMENTS IN ITS CONSUMER MARKET ASSUMING INTEREST RATES REMAIN FAVORABLE 9404210045 940421 BUSINESS BRIEF CLARK EQUIPMENT CO STOCKHOLM'S AB ELECTROLUX TO SELL BLAWKNOX DIVISION CLARK EQUIPMENT CO SAID IT SIGNED A DEFINITIVE AGREEMENT TO BUY BLAWKNOX CONSTRUCTION EQUIPMENT CORP A BUSINESS OF AB ELECTROLUX OF STOCKHOLM FOR ABOUT 144 MILLION BASED IN MATTOON ILL BLAWKNOX GENERATED 1993 SALES OF 873 MILLION AND EMPLOYS 700 PEOPLE MAKING ASPHALT ROADPAVING EQUIPMENT CLARK WHICH MAKES CONSTRUCTION MACHINERY SAID THAT BLAWKNOX HAS ABOUT 50 OF THE US MARKET FOR ROADPAVING EQUIPMENT CLARK OF SOUTH BEND IND SAID THE ACQUISITION IS SUBJECT TO US ANTITRUST REVIEW AND APPROVAL BY ITS DIRECTORS 9404210044 940421 INTERNATIONAL BRIEF CS HOLDING AG CREDIT SUISSE 1STQUARTER NET IS EXPECTED TO TOP ESTIMATE THE PRESIDENT OF CREDIT SUISSE DESCRIBED THE GROUP'S FIRSTQUARTER RESULTS AS EXCELLENT AND SAID SYNERGIES ARISING FROM THE BANK'S ACQUISITION LAST YEAR OF SWISS VOLKSBANK WERE LARGELY RESPONSIBLE FOR THE IMPROVEMENT JOSEF ACKERMANN ALSO SAID THAT AS THINGS NOW STAND WE ARE ALL SET TO EXCEED OUR MEDIUMTERM ESTIMATE OF AN ANNUAL 250 MILLION SWISS FRANCS 1731 MILLION IMPROVEMENT IN PROFIT AS A RESULT OF THE ACQUISITION MR ACKERMANN SAID CREDIT SUISSE AND SWISS VOLKSBANK ARE ADVANCED IN THEIR EFFORTS TO STREAMLINE THEIR BRANCH NETWORKS IN SWITZERLAND THE CS HOLDING AG UNIT'S FIRSTQUARTER RESULTS WILL BE RELEASED NEXT WEEK 9404210043 940421 BUSINESS BRIEF COLGATEPALMOLIVE CO HOUSEHOLDPERSONAL PRODUCT MAKER POSTS HIGHER EARNINGS COLGATEPALMOLIVE CO POSTED FIRSTQUARTER EARNINGS COMPARED WITH A YEARAGO LOSS WITH GROWTH IN DEVELOPING COUNTRIES BUT WEAKER RESULTS IN THE US AND EUROPE THE NEW YORK COMPANY SAID FIRSTQUARTER EARNINGS WERE 1496 MILLION OR 98 CENTS A SHARE COMPARED WITH A LOSS OF 2174 MILLION OR 139 A SHARE A YEAR EARLIER EXCLUDING A 3582 MILLION ACCOUNTING CHARGE IN 1993 EARNINGS WOULD HAVE RISEN 6 SALES ROSE 4 TO 177 BILLION MUCH OF THE GOOD NEWS WAS FROM ABROAD SALES IN LATIN AMERICA INCREASED 15 WITH ASIAN AND AFRICAN SALES UP 21 IN THE US AND CANADA WHERE THE HOUSEHOLD AND PERSONAL CARERELATED UNITS ACCOUNT FOR 20 OF REVENUES COLGATE SAID SALES WERE OFF 5 DUE TO THE COMPETITIVE PRICING ENVIRONMENT SALES IN EUROPE DROPPED 4 ON FOREIGN CURRENCY DECLINES COLGATE SAID SALES WOULD HAVE INCREASED 2 ON A CONSTANT CURRENCY BASIS 9404210042 940421 BUSINESS BRIEF FIRSTFED MICHIGAN CORP FIRSTPERIOD LOSS IS REPORTED AFTER 146 MILLION CHARGE FIRSTFED MICHIGAN CORP SAID IT TOOK A ONETIME CHARGE OF 146 MILLION RELATED TO BALANCESHEET RESTRUCTURING THAT RESULTED IN A LOSS FOR THE FIRST QUARTER THE DETROITBASED BANKHOLDING COMPANY REPORTED A FIRSTQUARTER LOSS OF 1361 MILLION OR 730 A SHARE THAT COMPARES WITH PROFIT OF 91 MILLION OR 48 CENTS A SHARE A YEAR AGO FIRSTFED SAID THE RESTRUCTURING WHICH WAS ANNOUNCED IN MARCH WAS DESIGNED TO INCREASE FUTURE CORE EARNINGS BY REDUCING WHOLESALE ASSETS AND LIABILITIES AND BY VIRTUALLY ELIMINATING THE COMPANY'S GOODWILL BALANCE AND RELATED AMORTIZATION EXPENSE THE 1994 FIRSTQUARTER RESULTS ALSO INCLUDED A NONRECURRING PRETAX LOSS OF 24 MILLION 16 MILLION AFTER TAX ON LOANS HELD FOR SALE 9404210041 940421 BUSINESS BRIEF RUETGERSWERKE AG GERMAN COMPANY EXPECTS EARNINGS TURNAROUND IN 1994 RUETGERSWERKE AG A GERMAN CHEMICAL GROUP SAID IT EXPECTS AN EARNINGS TURNAROUND IN 1994 WITH ALL CORPORATE DIVISIONS SEEN POSTING PROFITS A 2 INCREASE IN GROUP SALES DURING THE FIRST THREE MONTHS OF THE YEAR LEAD THE COMPANY TO EXPECT THE DOWNWARD TREND OF THE PAST YEARS HAS BEEN STOPPED SAID CHAIRMAN WOLFHARD RING SPEAKING AT THE COMPANY'S ANNUAL EARNINGS NEWS CONFERENCE IN FRANKFURT MR RING SAID HE SEES THE FULLYEAR EARNINGS PICKUP COMING THROUGH COST REDUCTIONS AND BUSINESS RESTRUCTURING MORE IMPORTANT THAN THE MODEST SALES INCREASE IN JANUARYMARCH WAS WHAT MR RING CALLED A CLEAR IMPROVEMENT IN EARNINGS WHICH HE ATTRIBUTED TO COST CUTTING AND CHANGES IN PRODUCT LINES AND PRODUCTION GROUP OPERATING PROFIT SOARED TO 247 MILLION MARKS IN 1993 COMPARED WITH 68 MILLION MARKS A YEAR EARLIER AGAIN THE COMPANY'S RESTRUCTURING MEASURES WERE NAMED FOR THE IMPROVEMENT 9404210040 940421 BUSINESS BRIEF CANADIAN PACIFIC LTD RAIL CONCERN PICKS 2 GROUPS TO NEGOTIATE LINE'S FUTURE CANADIAN PACIFIC LTD SAID IT WILL NEGOTIATE WITH GUILFORD TRANSPORTATION INDUSTRIES AND A DELAWAREBASED GROUP TO PRESERVE RAIL SERVICE IN EASTERN CANADA CANADIAN PACIFIC SAID IT SELECTED GUILFORD OF NORTH BILLERICA MASS AND CANTRAK A GROUP OF US AND CANADIAN INVESTORS BASED IN BEAR DEL AFTER REVIEWING PROPOSALS FROM POTENTIAL OPERATORS CANADIAN PACIFIC SAID IT WILL DECIDE AT THE END OF MAY WHICH OF THE TWO PARTIES IT WILL CONTINUE TO NEGOTIATE WITH IN AN EFFORT TO DEVELOP A COMMERCIAL AGREEMENT THAT WOULD CONTINUE SERVICE ON ALL OR PART OF THE 408MILE NETWORK IN EASTERN QUEBEC NORTHERN MAINE AND NEW BRUNSWICK CANADIAN PACIFIC HAS RECEIVED REGULATORY PERMISSION TO END RAIL OPERATIONS AS OF NEXT JAN 1 THE MONTREAL TRANSPORTATION AND ENERGY CONGLOMERATE IS TRYING TO SHED UNPROFITABLE RAIL LINES IN EASTERN CANADA 9404210039 940421 BUSINESS BRIEF DATA GENERAL CORP FISCAL SECONDQUARTER LOSS WIDENED BUT REVENUE ROSE DATA GENERAL CORP SAID ITS FISCAL SECONDQUARTER LOSS WIDENED AND TOOK A RESTRUCTURING CHARGE FOR COSTCUTTING MEASURES BUT IT SAID REVENUE WAS UP REVERSING A LONG DOWNTREND FOR THE QUARTER ENDED MARCH 26 THE WESTBOROUGH MASS MAKER OF MIDRANGE COMPUTERS REPORTED A LOSS OF 48 MILLION OR 135 A SHARE AFTER A 35 MILLION RESTRUCTURING CHARGE A YEAR AGO IT REPORTED A LOSS OF 76 MILLION OR 22 CENTS A SHARE REVENUE ROSE 8 TO 2829 MILLION FROM 2674 MILLION THE COMPANY SAID IT WAS THE FIRST YEARTOYEAR INCREASE IN QUARTERLY REVENUE IN THREE YEARS THE IMPROVEMENT OCCURRED BECAUSE SALES OF DATA GENERAL'S AVIION LINE OF UNIX COMPUTERS FINALLY GOT BIG ENOUGH TO OVERCOME THE SHRINKAGE OF SALES OF ITS PROPRIETARY ECLIPSE LINE THE RESTRUCTURING CHARGE WILL BE USED TO REDUCE EMPLOYMENT BY 400 TO 600 PEOPLE TO BETWEEN 6500 AND 6700 EMPLOYEES 9404210038 940421 CORRECTIONS & AMPLIFICATIONS CHRYSLER CORP EARNED 530 MILLION IN THE 1993 FIRST QUARTER BUT AFTER CHARGES FOR ACCOUNTING CHANGES IT HAD A NET LOSS AN ITEM IN YESTERDAY'S WHAT'S NEWS SUMMARY ON PAGE ONE SAID CHRYSLER'S RECORD NET INCOME IN THE 1994 FIRST QUARTER ROSE 77 FROM THE 1993 FIRST QUARTER IN FACT THAT 77 INCREASE WAS BASED ON THE 1993 PERIOD'S EARNINGS BEFORE THE CHARGES PHYSICAL THERAPISTS' STARTING SALARIES LAST YEAR AVERAGED 24025 ACCORDING TO THE COLLEGE PLACEMENT COUNCIL INC A COUNCIL FIGURE OF 18000 FOR COLLEGEGRADUATE THERAPISTS THIS YEAR CITED IN THE LABOR LETTER COLUMN TUESDAY WAS UNREPRESENTATIVE BECAUSE IT REFLECTED JUST ONE JOB OFFER REPORTED TO THE COUNCIL SO FAR THIS YEAR 9404210037 940421 BUSINESS BRIEF LOUIS DREYFUS NATURAL GAS CORP A 2NDPERIOD PRETAX CHARGE WILL FOLLOW PROPERTY SALE LOUIS DREYFUS NATURAL GAS CORP SAID ITS AGREEMENT TO SELL ITS WORKING INTEREST IN A GULF OF MEXICO PROPERTY WILL RESULT IN A 5 MILLION PRETAX CHARGE IN THE SECOND QUARTER THE OKLAHOMA CITY ENERGY COMPANY SAID IT AGREED TO SELL ITS 79 WORKING INTEREST IN THE WEST DELTA 152 OFFSHORE PLATFORM TO CLOSELY HELD MIDCON OFFSHORE INC OF HOUSTON FOR 266 MILLION PROCEEDS FROM THE SALE WILL BE USED FOR DEVELOPMENT DRILLING OR FOR ACQUISITIONS THE COMPANY SAID LOUIS DREYFUS OPERATES THE PLATFORM WHICH IT SAID HAD ESTIMATED PROVED RESERVES OF 27 MILLION BARRELS OF OIL AND 165 BILLION CUBIC FEET OF GAS OR 5 OF THE COMPANY'S RESERVES AS OF DEC 31 1993 SIMON RICH PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THAT THE PLATFORM WAS THE COMPANY'S ONLY OPERATED OFFSHORE PROPERTY AND DID NOT FIT WELL WITH THE COMPANY'S LONGTERM STRATEGY HE SAID LOUIS DREYFUS WILL NOW FOCUS ON ACQUIRING AND DEVELOPING ONSHORE GAS RESERVES 9404210036 940421 INTERNATIONAL BRIEF NIPPON TELEGRAPH & TELEPHONE CORP TOKYO COMPANY AMPLIFIES ITS STRATEGY FOR MULTIMEDIA JAPANESE TELECOMMUNICATIONS GIANT NIPPON TELEGRAPH & TELEPHONE CORP RELEASED A CONCRETE MULTIMEDIA GAME PLAN WEDNESDAY WHICH INCLUDES JOINT TESTS WITH INTERESTED THIRD PARTIES THE COMPANY WHICH IS BASED IN TOKYO FIRST UNVEILED ITS MULTIMEDIA STRATEGY IN JANUARY THE WEDNESDAY ANNOUNCEMENT AMPLIFIED THAT PLAN NTT SAID ITS MULTIMEDIA PLAN FOCUSES ON TELECOMMUNICATIONS SYSTEMS USING SUPERFAST COMPUTERS MULTIMEDIA NETWORKING FOR THE GENERAL PUBLIC AND CABLE TELEVISION SERVICES THE COMPANY SAID IT WILL CONDUCT EXPERIMENTS IN TOKYO OSAKA NAGOYA AND SEVEN OTHER MAJOR METROPOLITAN AREAS FROM SEPTEMBER 1994 TO MARCH 1997 IN THE COMPUTER FIELD THE EXPERIMENTS ARE TO CREATE HIGHSPEED LOCAL AREA NETWORKS OR LANS NTT SAID AN NTT OFFICIAL SAID THE COMPANY WILL CHOOSE ITS THIRDPARTY PARTNERS BY SEPTEMBER 9404210035 940421 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 5/8 LOW 3 3/4 NEAR CLOSING BID 3 3/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 1/4 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 382 30 TO 44 DAYS 387 45 TO 59 DAYS 395 60 TO 74 DAYS 402 75 TO 89 DAYS 407 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 389 30 DAYS 4 60 DAYS 412 90 DAYS CERTIFICATES OF DEPOSIT 332 ONE MONTH 340 TWO MONTHS 355 THREE MONTHS 398 SIX MONTHS 459 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 385 ONE MONTH 415 THREE MONTHS 455 SIX MONTHS BANKERS ACCEPTANCES 376 30 DAYS 386 60 DAYS 402 90 DAYS 414 120 DAYS 426 150 DAYS 436 180 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 558 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 846 60 DAYS 856 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 840 60 DAYS 849 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 630 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 297 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9404210033 940419 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 9404210032 940420 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 9404210031 940421 WHO'S NEWS WHIRLPOOL CORP WHIRLPOOL CORP BENTON HARBOR MICH DAN MILLER 45 YEARS OLD CURRENTLY CORPORATE VICE PRESIDENT AND PRESIDENT OF THE MAJOR HOME APPLIANCE MAKER'S WHIRLPOOL DO BRASIL UNIT WAS NAMED TO THE NEW POST OF EXECUTIVE VICE PRESIDENT LATIN AMERICA AND WILL JOIN THE EXECUTIVE COMMITTEE OF THE COMPANY 9404210030 940421 POLITICS & POLICY HOUSING STARTS JUMPED 121 IN MARCH AS CONSTRUCTION RECOVERED FROM WINTER BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOUSING STARTS SURGED 121 IN MARCH THE COMMERCE DEPARTMENT SAID AS CONSTRUCTION REBOUNDED FROM SEVERE COLD WEATHER AND WINTER STORMS IN THE FIRST TWO MONTHS OF THE YEAR WORK WAS BEGUN ON NEW HOUSES AT AN ANNUAL RATE OF 1473000 UNITS LAST MONTH UP FROM A REVISED 1314000 UNITS IN FEBRUARY STARTS WHICH PLUMMETED 22 IN JANUARY AND THEN ROSE A MODEST 34 IN FEBRUARY WERE STILL WELL BELOW DECEMBER'S PACE OF 1612000 UNITS HIGHER MORTGAGEINTEREST RATES MAY HAVE PREVENTED AN EVEN LARGER HOMEBUILDING RISE IN MARCH SOME ECONOMISTS SAID STARTS OF SINGLEFAMILY HOUSES INCREASED 113 IN MARCH TO A YEARLY RATE OF 1274000 UNITS MULTIFAMILY STARTS WHICH DROPPED FOR MUCH OF LAST YEAR CLIMBED 165 IN MARCH TO AN ANNUAL RATE OF 226000 ON TOP OF A 31 JUMP IN FEBRUARY FIRSTQUARTER STARTS TOPPED THE FIRST PERIOD OF 1993 BY 21 REFLECTING A SHARP TURNAROUND AND SUGGESTING THAT HOUSING ACTIVITY AND THE ECONOMY ARE GOING TO BE PRETTY STRONG THIS YEAR SAID ROBERT DAVIS CHIEF ECONOMIST FOR THE SAVINGS AND COMMUNITY BANKERS OF AMERICA THE THRIFT INDUSTRY'S TRADE GROUP HE PREDICTED THAT HOUSING STARTS WILL HOLD AT AN ANNUAL RATE OF ABOUT 15 MILLION UNITS THROUGH THIS SUMMER BEFORE EASING OFF LATE IN THE YEAR IN A SURVEY OF 450 BUILDERS BY THE NATIONAL ASSOCIATION OF HOME BUILDERS COMPLETED YESTERDAY 47 SAID MORTGAGERATE RISES HAVE HURT HOUSING STARTS WHILE ONLY 8 SAID THE INCREASES HAVE SPURRED MORE STARTS IN ANTICIPATION OF STILLHIGHER RATES LATER SIMILARLY 51 OF THE BUILDERS SAID HIGHER INTEREST RATES HAVE AFFECTED HOME SALES AND 27 SAID THEY LED TO DELAYS OR CANCELLATION OF SALES SETTLEMENTS SOME PROSPECTIVE HOME BUYERS MAY NO LONGER QUALIFY FOR THE HOME THEY DESIRE SAID ROBERT SHEEHAN ECONOMIST FOR THE NATIONAL APARTMENT ASSOCIATION THEY WILL EITHER HAVE TO SCALE DOWN THEIR DESIRES OR DROP OUT OF THE MARKET RECENT INCREASES IN LONGTERM INTEREST RATES WILL UNDOUBTEDLY PUT SOME DOWNWARD PRESSURE ON CONSTRUCTION IN THE COMING MONTHS THOUGH THE MARCH HOUSING FIGURES SHOW THAT CONSTRUCTION WORK IS STILL CONTRIBUTING TO THE HEALTHY GROWTH OF THE ECONOMY SAID COMMERCE SECRETARY RONALD BROWN THE BIGGEST RISE IN HOME BUILDING LAST MONTH WAS IN THE MIDWEST WHERE STARTS SOARED 304 OTHER REGIONS SHOWED INCREASES IN THE 78 RANGE BUILDING PERMITS OFTEN A HARBINGER OF CONSTRUCTION ACTIVITY ROSE 51 IN MARCH TO AN ANNUAL RATE OF 1314000 UNITS AFTER FALLING 8 IN FEBRUARY SINGLEFAMILY PERMITS WERE UP 2 WHILE THOSE FOR MULTIFAMILY UNITS CLIMBED 22 FIGURES IN THE REPORT ARE ADJUSTED FOR SEASONAL VARIATION 9404210029 940421 BUSINESS BRIEF SEITEL INC CONCERN SAYS 1STPERIOD NET SHOULD EXCEED ESTIMATES SEITEL INC SAID IT EXPECTS FIRSTQUARTER EARNINGS TO EXCEED ANALYSTS' ESTIMATES OF 22 CENTS A SHARE FOR THE YEARAGO FIRST QUARTER THE HOUSTONBASED SEISMIC DATA COMPANY REPORTED NET INCOME OF 699761 OR 12 CENTS A SHARE ON REVENUE OF 65 MILLION THE COMPANY SAID IT DIDN'T YET HAVE A FINAL FIGURE FOR THE 1994 FIRSTQUARTER NET BUT REVENUE FOR THE QUARTER WAS ABOUT 13 MILLION THE NEWS WAS RECEIVED WARMLY ON WALL STREET WHERE SEITEL STOCK JUMPED 325 OR 16 TO 2350 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE SEITEL SAID IT EXPECTS TO REPORT FIRSTQUARTER RESULTS IN EARLY MAY 9404210028 940421 INTERNATIONAL BRIEF PIRELLI SPA ITALIAN TIRE COMPANY POSTS NARROWER NET LOSS FOR 1993 ITALIAN TIRE AND CABLE MAKER PIRELLI SPA SAID CONSOLIDATED LOSSES NARROWED TO 96 BILLION LIRE 588 MILLION IN 1993 FROM 154 BILLION LIRE IN THE PREVIOUS YEAR AS THE COMPANY STARTED TO DERIVE BENEFITS FROM A MASSIVE RESTRUCTURING INITIATED IN 1991 PIRELLI SAID NET DEBT FELL BY MORE THAN 500 BILLION LIRE IN 1993 TO 2106 TRILLION LIRE THE COMPANY ALSO SAID THAT IN THE FIRST FEW MONTHS OF 1994 IT STARTED TO SHOW EVEN GREATER BENEFITS FROM RESTRUCTURING MEASURES AND IF MARKETS START TO RECOVER PIRELLI SAID IT COULD REGISTER A NET PROFIT AT THE END OF THIS YEAR ON THE MILAN EXCHANGE YESTERDAY PIRELLI SHARES CLOSED AT 3070 LIRE UP 145 LIRE 9404210027 940421 WHO'S NEWS CROWN AMERICAN REALTY TRUST CROWN AMERICAN REALTY TRUST JOHNSTOWN PA TERRY L STEVENS 45 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF VICE PRESIDENT AND CHIEF ACCOUNTING OFFICER OF THIS REAL ESTATE INVESTMENT TRUST THE APPOINTMENT IS EFFECTIVE MAY 1 MR STEVENS WILL BE RESPONSIBLE FOR THE COMPANY'S ACCOUNTING DEPARTMENT INCLUDING ALL FINANCIAL REPORTING AND BUSINESS PLANS HE WAS MOST RECENTLY DIRECTOR OF CORPORATE FINANCIAL SYSTEMS DEVELOPMENT AT ALLIEDSIGNAL INC MORRISTOWN NJ 9404210026 940421 WHO'S NEWS TIGER MANAGEMENT HIRES REALESTATE PAIR FROM MORGAN STANLEY NEW YORK TIGER MANAGEMENT CORP A HEDGEFUND MANAGER THAT HAS BEEN EAGER TO BEGIN INVESTING IN DISTRESSED REAL ESTATE HAS LURED AWAY TWO MANAGING DIRECTORS FROM MORGAN STANLEY GROUP INC TO RUN A NEW 200 MILLION REALESTATE FUND PAUL KAZILIONIS 37 YEARS OLD PRESIDENT OF MORGAN STANLEY'S 800 MILLION REALESTATE INVESTMENT FUND AND WILLIAM WALTON 42 ANOTHER REALESTATE INVESTMENT BANKER WILL BECOME PRINCIPALS IN THE NEW VENTURE TIGER REAL ESTATE PARTNERS TIGER'S ENTRANCE IN THE REALESTATE VULTURE INVESTMENT ARENA FOLLOWS THAT OF OTHER HEDGEFUND MANAGERS SUCH AS GEORGE SOROS AND MICHAEL STEINHARDT WE'VE BEEN LOOKING AT THIS AREA FOR OVER TWO YEARS BUT HADN'T FOUND ANY GREAT WAY TO ADDRESS IT SAID TIGER PRESIDENT JOHN GRIFFIN THE NEW VENTURE IS CONSISTENT WITH OUR PHILOSOPHY OF PURSUING INVESTMENT ALTERNATIVES THAT OFFER ATTRACTIVE RETURNS USING PROFESSIONALS THAT HAVE A PROVEN TRACK RECORD TIGER HAS BEEN RAIDING WALL STREET'S TOP TALENT FOR MONTHS LATE LAST YEAR TWO TOP ECONOMISTS AT GOLDMAN SACHS & CO DAVID MORRISON AND JEREMY HALE RESIGNED FROM GOLDMAN'S LONDON UNIT TO JOIN TIGER AND ARCHIBALD COX JR WHO LEFT HIS POSITION AS PRESIDENT OF THE FORMER FIRST BOSTON CORP NOW CS FIRST BOSTON A UNIT OF CS HOLDING AG IN JULY BECAME CHAIRMAN OF AN INTERNATIONAL INVESTMENT FUND FOR TIGER MANAGEMENT IN OCTOBER THE MORGAN STANLEY DEPARTURES ARE THE LATEST IN A STRING OF HIGH PROFILE RESIGNATIONS OVER THE PAST NINE MONTHS ABOUT 15 INVESTMENT BANKERS HAVE LEFT FOR SMITH BARNEY SHEARSON INC THE BROKERAGE UNIT OF TRAVELERS INC MR KAZILIONIS STRESSED THAT HIS DECISION DIDN'T RESULT FROM DISSATISFACTION WITH THE FIRM BUT FROM THE OPPORTUNITY TO INVEST FOR OUR OWN ACCOUNT THE CHANCE TO HAVE TIGER CHAIRMAN JULIAN ROBERTSON CAPITALIZE YOUR FIRM AND TO GO OUT AND BUY IS A ONCEINALIFETIME OPPORTUNITY 9404210025 940421 CLINTON ISSUES AN ULTIMATUM TO BOSNIA SERBS PRESIDENT CALLS FOR NATO TO USE MORE AIR POWER TO PROTECT SAFE AREAS' BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SAYING THAT THE US HAS BOTH HUMANITARIAN AND STRATEGIC INTERESTS IN ENDING THE WAR IN BOSNIA PRESIDENT CLINTON CALLED ON NATO TO USE WIDER AIR POWER TO PROTECT BESIEGED MUSLIM SAFE AREAS MR CLINTON SAID THE US IS AIMING NOT ONLY TO HALT SERB AGGRESSION BUT ALSO TO REVIVE THE BOSNIAN PEACE PROCESS TO DO BOTH HE SAID WE MUST MAKE THE SERBS PAY A HIGHER PRICE FOR CONTINUED VIOLENCE AT A NEWS CONFERENCE YESTERDAY MR CLINTON MADE A REASONED PRESENTATION ABOUT THE LOGIC OF TOUGHER ACTION IN BOSNIA AND OFFERED A SOMEWHAT CURSORY EXPLANATION OF THE US INTERESTS AT STAKE BUT HE SHOWED LITTLE OF THE PASSION THAT WILL BE NECESSARY TO BUILD AND MAINTAIN AMERICAN PUBLIC SUPPORT FOR WHAT COULD BE A DANGEROUS MILITARY OPERATION WITH NO CERTAINTY OF SUCCESS IN PARTICULAR MR CLINTON WAS HESITANT TO DEMONIZE THE SERBS CALLING THEM THE PRIMARY AGGRESSORS BUT SAYING THAT IN THE END THERE'S GOING TO HAVE TO BE A PEACE AGREEMENT IN GORAZDE YESTERDAY BOSNIAN SERBS CONTINUED TO DEFY NORTH ATLANTIC TREATY ORGANIZATION THREATS SHELLING A HOSPITAL AND AN APARTMENT HOUSE AND KILLING AT LEAST 18 PEOPLE WHEN ASKED WHAT HE WOULD DO IF BROADER AIR STRIKES FAILED TO HALT THE SERB OFFENSIVE MR CLINTON WOULD SAY ONLY THAT THERE ARE OTHER THINGS THAT CAN BE DONE BUT IN A CLEAR NOD TO CRITICS FEARFUL OF GETTING DRAWN INTO A LARGER WAR INCLUDING THOSE WITHIN HIS OWN PENTAGON MR CLINTON ACKNOWLEDGED THAT AIR POWER HAS LIMITED EFFECTIVENESS AND SAID THAT HE WANTED TO STICK TO ACHIEVABLE OBJECTIVES IN ADDITION TO ISSUING AN ULTIMATUM TO BOSNIAN SERBS TO HALT THEIR ATTACKS ON THE FIVE SAFE AREAS MR CLINTON SAID THE US WOULD PRESS FOR TIGHTER ENFORCEMENT OF ECONOMIC SANCTIONS ON SERBIA AND HE SAID THAT THE US WILL DISCUSS WITH ITS ALLIES A MAJOR DIPLOMATIC EFFORT TO BRING AN END TO THE WAR AN ACKNOWLEDGEMENT OF FRENCH AND RUSSIAN CALLS FOR A GREAT POWERS SUMMIT THAT WOULD IMPOSE A SOLUTION ON THE WARRING PARTIES PERHAPS MOST IMPORTANT FOR THE EUROPEAN ALLIES WHOSE TROOPS ON THE GROUND IN BOSNIA ARE VULNERABLE TO SERB RETALIATION MR CLINTON SAID THE US WOULD BE WILLING TO BEAR A SIGNIFICANT PORTION OF THE ECONOMIC COST OF SENDING THOUSANDS MORE UN PEACEKEEPERS TO REINFORCE THOSE ALREADY ON THE GROUND US OFFICIALS SAID PRIVATELY HOWEVER THAT OFFER WAS MORE A SIGN OF SUPPORT FOR THE OVERALL PEACEKEEPING EFFORT IN BOSNIA THAN AN IMMEDIATE REQUIREMENT FOR MAKING THE AIRSTRIKE PLAN WORK US OFFICIALS SAID THAT FEWER TROOPS MAY BE NEEDED THAN DURING LAST FEBRUARY'S SARAJEVO ULTIMATUM BECAUSE THE BOSNIAN SERBS WON'T BE REQUIRED TO SURRENDER THEIR WEAPONS TO UN MONITORS INSTEAD THEY WOULD HAVE TO HALT THEIR SHELLING AND REMOVE THE WEAPONS FROM THE SPECIFIED EXCLUSION ZONES US OFFICIALS SAID THEY BELIEVED THE EUROPEANS ARE ALREADY WON OVER TO THE IDEA OF THREATENING AIR STRIKES BUT THE DEVIL REMAINS IN THE DETAILS US OFFICIALS HOPE TO PRESENT THE NEW PROPOSAL TOMORROW TO THE NORTH ATLANTIC COUNCIL WHICH IS THE NATO'S POLITICAL ARM NATO AMBASSADORS MEETING IN BRUSSELS YESTERDAY DIRECTED MILITARY PLANNERS TO DRAW UP PLANS TO IMPLEMENT THE AIRSTRIKE ULTIMATUM AMONG THE DIFFICULT ISSUES THAT MUST BE RESOLVED ARE HOW BROAD A RANGE OF TARGETS NATO PLANES WILL ATTACK HOW MANY ADDITIONAL TROOPS WILL BE SENT AND HOW QUICKLY AND WHAT MORE CAN BE DONE TO PROTECT THE THOUSANDS OF PEACEKEEPERS ALREADY ON THE GROUND US OFFICIALS SAID THAT MR CLINTON IS NOW ADAMANT THAT THE ALLIANCE NOT REPEAT THE PIN PRICK AIR STRIKES THAT FAILED TO HALT THE SERB ASSAULT ON GORAZDE LAST WEEK BUT MUST IMPRESS THE SERBS WITH NATO'S RESOLVE AND ITS TECHNICAL SUPERIORITY MANY EUROPEAN ALLIES CONTINUE TO BE FEARFUL THAT IF THEY PUNISH THE SERBS TOO HARD THAT WILL ONLY INCITE THEM TO FURTHER MAYHEM MR CLINTON WHO HAS BEEN CRITICIZED FOR GIVING SHORT SHRIFT TO FOREIGN POLICY SPENT MUCH OF YESTERDAY AFTERNOON ON THE TELEPHONE LOBBYING HIS PROPOSAL WITH NATO COUNTERPARTS AND RUSSIAN PRESIDENT BORIS YELTSIN BRITAIN BELIEVED TO BE THE MOST SKEPTICAL AMONG AMERICA'S CLOSEST ALLIES INDICATED YESTERDAY THAT IT WOULD SUPPORT AT LEAST SOME VERSION OF MR CLINTON'S AIRSTRIKE PROPOSAL FOREIGN SECRETARY DOUGLAS HURD SAID WE NEED TO USE AIR POWER NOT BECAUSE IT IS MAGIC NOT BECAUSE IT WILL ITSELF BRING PEACE BUT BECAUSE IT CAN BE USEFUL IN PROTECTING SAFE AREAS HE ALSO WELCOMED THE NEWS THAT THE US WOULD BE WILLING TO HELP FOOT THE BILL FOR UN REINFORCEMENTS THE UN COMMANDER IN BOSNIA IS BRITISH AND HE HAS SPENT THE PAST TWO MONTHS APPEALING FOR 10000 MORE TROOPS TO HELP PROTECT THE SAFE AREAS AND RELIEF CONVOYS UNTIL NOW VERY FEW OF THOSE EXTRA TROOPS HAVE BEEN SENT PARTLY BECAUSE OF A LACK OF VOLUNTEERS BUT ALSO BECAUSE OF WASHINGTON'S REFUSAL TO PICK UP THE LIONS SHARE OF THE BILL WHICH COULD RUN AS HIGH AS 80 MILLION TO 100 MILLION FOR THE US AFTER SPEAKING WITH MR YELTSIN MR CLINTON EXPRESSED HOPE THAT HE WOULD EVENTUALLY WIN THE RUSSIAN PRESIDENT'S SUPPORT AS WELL BUT WHILE MR YELTSIN IS CLEARLY FED UP WITH THE BOSNIAN SERBS HE STILL MUST BE WARY OF ALIENATING HIS NATIONALISTIC OPPONENTS AND EVEN SOME OF HIS FRIENDS AMONG THEM RUSSIAN DEFENSE MINISTER PAVEL GRACHEV WHO REMAINS STRONGLY OPPOSED TO NATO AIR STRIKES THE RUSSIAN NEWS AGENCY ITARTASS LAST NIGHT QUOTED MR GRACHEV AS SAYING WE REJECT A SETTLEMENT BASED ON NATO'S AIR STRIKES AS EXTREMELY DANGEROUS MR CLINTON'S PROPOSAL DREW A MIXED RESPONSE FROM CAPITOL HILL VIRGINIA REPUBLICAN SEN JOHN WARNER A MEMBER OF THE ARMED SERVICES COMMITTEE SAID THERE IS NO VITAL US NATIONAL SECURITY INTERESTS AT STAKE IN BOSNIA WHICH JUSTIFY THE USE OF US FORCE MEANWHILE SENATE MINORITY LEADER ROBERT DOLE R KAN CRITICIZED THE PRESIDENT FOR NOT ACTING SOONER HE SAID THAT MR CLINTON'S FREQUENT POLICY SHIFTS ON BOSNIA CERTAINLY AFFECTS HIS CREDIBILITY IT AFFECTS OUR CREDIBILITY AROUND THE WORLD HE ADDED IF WE CAN'T SEND A MESSAGE TO SERBIA WE'RE REALLY IN TROUBLE MARYLAND DEMOCRATIC REP STENY HOYER HAD A SIMILAR RESPONSE AT THIS TIME IT IS CRITICAL THAT THE PRESIDENT'S WORDS BE MATCHED BY DEEDS JEFFREY H BIRNBAUM IN WASHINGTON AND CLAUDIA ROSETT IN MOSCOW CONTRIBUTED TO THIS ARTICLE 9404210024 940421 KIDDER PEABODY FIRED BOND AIDE ON TIES TO RIVAL OUSTED EXECUTIVE WORKED WITH FRENCH COMPANY IN CONSULTANT'S POST BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN ANOTHER SIGN OF PROBLEMS IN ITS BOND OPERATIONS KIDDER PEABODY GROUP INC FIRED A BONDDERIVATIVES EXECUTIVE EARLIER THIS YEAR AFTER CONCLUDING HE WAS ALSO WORKING FOR A RIVAL FIRM WHILE WORKING AT KIDDER ACCORDING TO KIDDER EXECUTIVES THE DISMISSED EXECUTIVE CLIFFORD KAPLAN STRUCTURED BONDDERIVATIVES DEALS FOR KIDDER MR KAPLAN A 28YEAROLD KIDDER VICE PRESIDENT COULDN'T BE REACHED FOR COMMENT YESTERDAY THE OUSTER OF MR KAPLAN APPEARS TO BE UNRELATED TO THE RECENT FIRING OF JOSEPH JETT KIDDER'S FORMER GOVERNMENTBOND CHIEF THE GENERAL ELECTRIC CO UNIT FIRED MR JETT OVER THE WEEKEND ACCUSING HIM OF CREATING PHANTOM TRADES AND PROFITS IN THE GOVERNMENTSTRIPS MARKET INFLATING KIDDER'S INCOME BY 350 MILLION OVER MORE THAN A YEAR IN AN ALLEGED BID TO PROP HIS PERFORMANCEBASED BONUS BUT WITH ITS BONDTRADING WOES DEEPENING KIDDER HAS ALSO FIRED TWO OTHER GOVERNMENTBOND TRADERS IN RECENT WEEKS FOR TRADING LOSSES AND MAINTAINING UNHEDGED TRADING POSITIONS THE KIDDER EXECUTIVES SAID KIDDER REFUSED TO NAME THE TRADERS BUT SAID THOSE DISMISSALS ALSO ARE UNRELATED TO THE JETT CASE KIDDER EXECUTIVES SAY THEY CONCLUDED IN JANUARY THAT MR KAPLAN THE DERIVATIVES EXECUTIVE HAD A SALARIED CONSULTING POSITION WITH A US UNIT OF LA COMPAGNIE FINANCIERE EDMOND DE ROTHSCHILD BANQUE A PARIS INVESTMENT FIRM WHILE HE WAS WORKING AT KIDDER KIDDER THEN FIRED MR KAPLAN AND REFERRED THE MATTER TO ITS LEGAL DEPARTMENT THE PEOPLE AT KIDDER SAID ROTHSCHILD AND KNOX PARTNERS ITS US UNIT COULDN'T BE REACHED FOR COMMENT YESTERDAY SHORTLY BEFORE KIDDER DISMISSED MR KAPLAN THE FIRM SUFFERED A 17 MILLION LOSS ON A DERIVATIVES DEAL THAT HE HAD COORDINATED KIDDER EXECUTIVES SAID THE RECENT DISMISSALS RAISE QUESTIONS ABOUT THE EFFORTS OF KIDDER TO SUPERVISE ITS BOND AND DERIVATIVES GROUPS ANALYSTS SAY KIDDER FOR ITS PART SAYS THERE WAS NO WAY THE FIRM COULD HAVE KNOWN ABOUT MR KAPLAN'S SIDE WORKING ARRANGEMENT THE FIRM SAYS IT HASN'T REPORTED THE MATTER TO REGULATORY AUTHORITIES IT'S UNCLEAR WHETHER THE DUAL WORKING RELATIONSHIPS WOULD BE ILLEGAL BECAUSE ROTHSCHILD IS A FOREIGN ENTITY SECURITIES EXECUTIVES SAY YESTERDAY GE TOOK A PREVIOUSLY ANNOUNCED 210 MILLION AFTERTAX CHARGE FOR IRREGULAR TRADING ACTIVITIES AT KIDDER OF WHICH 139 MILLION WAS RELATED TO EARLIER PERIODS KIDDER EARNED 62 MILLION IN THE FIRST QUARTER BEFORE THE CHARGE GE SAID KIDDER HAS ALSO ANNOUNCED THAT IT SUSPENDED SIX OTHERS IN BOND TRADING SUPPORT AND TRADEPROCESSING AREAS FROM THEIR POSTS PENDING AN INTERNAL INVESTIGATION OF THE JETT CASE KIDDER EXECUTIVES SAY THEY DISCOVERED MR KAPLAN'S CONSULTING ARRANGEMENT WHEN ROTHSCHILD DEMANDED THAT KIDDER PAY EXPENSES INCLUDING TRAVEL COSTS INCURRED BY MR KAPLAN WHICH ROTHSCHILD BELIEVED TO BE RELATED TO KIDDER BUSINESS THE PEOPLE SAY AMONG THE EXPENSES THE PEOPLE SAY WERE UNPAID CREDITCARD CHARGES INCLUDING PAYMENT FOR A FUR COAT KIDDER ENDED UP QUIETLY SETTLING THE MATTER WITH ROTHSCHILD WITHOUT PAYING THE EXPENSES THE PEOPLE SAY BUT THE ARRANGEMENT RAISED SOME VERY SERIOUS BUSINESS CONFLICTS A KIDDER EXECUTIVE SAYS EVEN BEFORE KIDDER DISCOVERED THE CONSULTING DEAL MR KAPLAN APPEARED TO BE ON SHAKY GROUND STEMMING FROM A DERIVATIVES DEAL HE COORDINATED LATE LAST YEAR THE TRANSACTION INVOLVED DERIVATIVEENHANCED ASSETLINKED SECURITIES OR DELS WHICH WERE CUSTOMIZED NOTES PACKAGED BY KIDDER INVOLVING ITALIAN GOVERNMENT BONDS THAT WERE SWAPPED INTO COUPONS IN ANOTHER CURRENCY KIDDER PLANNED TO SET UP THE DEAL THROUGH A SPECIALPURPOSE VEHICLE INCORPORATED IN LUXEMBOURG BUT UNANTICIPATED TAX PROBLEMS SURFACED WITH THE LUXEMBOURG LOCATION FORCING KIDDER EVENTUALLY TO INCORPORATE THE DEAL IN THE NETHERLANDS THAT SWITCH DELAYED THE SETTLEMENT AND CLOSING OF THE TRANSACTION COSTING KIDDER AGGREGATE LOSSES INCLUDING LEGAL FEES OF 17 MILLION THE PEOPLE SAY WE NEEDED ADDITIONAL TIME TO CLOSE THE DEAL AND HAD SOME LEGALCOST OVERRUNS A KIDDER EXECUTIVE SAID 9404210023 940421 WHAT'S NEWS WORLDWIDE CLINTON URGED NATO TO USE WIDER AIR POWER TO PROTECT MUSLIM SAFE AREAS THE PRESIDENT CALLED FOR MORE AGGRESSIVE NATO MILITARY ACTION DECLARING WE MUST MAKE THE SERBS PAY A HIGHER PRICE FOR CONTINUED VIOLENCE IN BOSNIA HE SAID THE US WOULD PRESS FOR TIGHTER ENFORCEMENT OF ECONOMIC SANCTIONS AGAINST SERBIA ALSO CLINTON SAID WASHINGTON WOULD DISCUSS WITH ITS ALLIES A MAJOR DIPLOMATIC EFFORT TO END THE WAR ADDING THAT THE US WOULD BE WILLING TO BEAR A LARGE PORTION OF THE COST OF SENDING IN THOUSANDS MORE PEACEKEEPERS IN THE TOWN OF GORAZDE SERBS IGNORED A TRUCE ACCORD ONE ROCKET SLAMMED INTO THE MAIN HOSPITAL'S EMERGENCY ROOM AND THE DIRECTOR OF THE HOSPITAL DESCRIBED THE SCENE AS HELL HORROR AND TERROR THE HOUSE CLEARED THE WAY FOR PASSAGE OF A MAJOR CRIME BILL BY VOTING TO MAKE IT EASIER FOR DEATH ROW INMATES TO CHALLENGE THEIR SENTENCES ON GROUNDS OF RACIAL DISCRIMINATION BY A 217212 VOTE LAWMAKERS REJECTED A REPUBLICAN ATTEMPT TO STRIP THE RACIAL JUSTICE PROVISION FROM THE BILL THE IMF GAVE FINAL APPROVAL FOR A 15 BILLION PAYMENT TO RUSSIA AN ACTION THAT COULD OPEN THE WAY FOR BILLIONS MORE IN DELAYED WESTERN ASSISTANCE TO HELP RESCUE THE COUNTRY'S ECONOMY THE 15 BILLION REPRESENTS THE SECOND INSTALLMENT OF A 3 BILLION IMF PACKAGE THAT WAS FIRST DESCRIBED OVER A YEAR AGO ISRAEL AND THE PLO REACHED AGREEMENT ON TRANSFERRING CIVILIAN AUTHORITY TO PALESTINIANS IN THE GAZA STRIP AND JERICHO INCLUDING THE DIFFICULT ISSUE OF CONTROL OVER WATER ACCORDING TO A PLO DELEGATE AT THE CAIRO TALKS THE ACCORD RESOLVES DOZENS OF ISSUES RELATED TO THE ISRAELI PULLOUT THOUGH OTHER DIFFERENCES HAVE YET TO BE RESOLVED CHRISTOPHER IS RETURNING TO THE MIDDLE EAST NEXT WEEK TO URGE ARAB AND ISRAELI LEADERS TO REINVIGORATE THEIR PEACE EFFORTS THE SECRETARY OF STATE SAID HE WOULD VISIT ISRAEL SYRIA EGYPT SAUDI ARABIA AND POSSIBLY LEBANON DURING THE WEEKLONG TRIP ADDING THAT HE WASN'T ANTICIPATING ANY DRAMATIC BREAKTHROUGHS THE FEDERAL GIFT TAX APPLIES TO CERTAIN TRANSFERS FROM LONGESTABLISHED TRUST FUNDS THE SUPREME COURT SAID THE UNANIMOUS DECISION WHICH REVERSED A LOWERCOURT RULING FAVORING TRUST BENEFICIARIES WILL TRANSLATE INTO MILLIONS OF DOLLARS IN REVENUE FOR THE GOVERNMENT ACCORDING TO IRS OFFICIALS RESEARCHERS IN BOSTON UNCOVERED A KEY STEP IN THE DEVELOPMENT OF ADULTONSET DIABETES THAT IS SIMILAR TO ONE THAT OCCURS IN ALZHEIMER'S DISEASE THE DISCOVERY SUGGESTS A NEW APPROACH TO PREVENTING TYPE II DIABETES AND HAS IMPLICATIONS FOR BIOTECHNOLOGY COMPANIES WORKING ON THERAPIES FOR EITHER DISEASE FORMER PRESIDENT NIXON REMAINED IN CRITICAL CONDITION IN A NEW YORK HOSPITAL AFTER SUFFERING A MAJOR STROKE ON MONDAY AT HIS HOME IN NEW JERSEY NIXON 81 IS PARTIALLY PARALYZED AND UNABLE TO SPEAK ZULU PARTY LEADER BUTHELEZI BEGAN CAMPAIGNING AFTER HIS DECISION TO END A BOYCOTT OF SOUTH AFRICA'S MULTIRACIAL ELECTIONS NEXT WEEK BUTHELEZI SAID HE HOPED HIS REVERSAL ON THE VOTE WOULD EASE TENSIONS INTERNATIONAL INVESTORS ARE STILL SKITTISH ABOUT SOUTH AFRICA SOUTH KOREA AGREED TO BEEF UP ITS MILITARY FASTER THAN PREVIOUSLY PLANNED AND BUY USMADE GEAR INCLUDING APACHE ATTACK HELICOPTERS IN ADDITION SOUTH KOREA AND THE US CITING NORTH KOREA'S FAILURE TO ALLOW NUCLEAR INSPECTIONS SAID THEIR TEAM SPIRIT MILITARY EXERCISE WOULD BE RESCHEDULED THE UN WITHDREW HUNDREDS OF PEACEKEEPERS FROM RWANDA AS THE SECURITY COUNCIL DISCUSSED HOW TO RESPOND TO THE BLOODSHED THERE AT LEAST ONETHIRD OF THE 2500 PEACEKEEPERS LEFT THE CAPITAL THIS WEEK MEANWHILE MASSACRES WERE REPORTED NEAR THE BORDER TOWN OF BUTARE WHERE THOUSANDS OF RWANDANS ARE TRYING TO FLEE INTO BURUNDI CIA DIRECTOR WOOLSEY TOLD CONGRESS THAT ORGANIZED CRIMINALS FROM RUSSIA CHINA AND AFRICA ARE FORGING TIES WITH OLD EUROPEAN AND LATIN AMERICAN CRIME GROUPS TO THREATEN WORLD SECURITY SPACE SHUTTLE ENDEAVOUR LANDED IN CALIFORNIA AFTER AN 11DAY ENVIRONMENTAL MISSION DURING WHICH ITS SIXMEMBER CREW GATHERED 3D IMAGES OF THE EARTH WITH RADAR INSTRUMENTS 9404210022 940421 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN BANK SYSTEM 300 MILLION OF FLOATINGRATE NOTES DUE APRIL 27 1995 PRICED INITIALLY AT PAR ACCORDING TO MCM CORPORATEWATCH THE BONDS WILL FLOAT AND PAY QUARTERLY NINE BASIS POINTS ABOVE THREEMONTH TREASURY BILLS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL HOME LOAN BANK SYSTEM 75 MILLION OF MULTIPLE STEPUP NOTES DUE MAY 10 1999 PRICED INITIALLY AT PAR TO YIELD 65 ACCORDING TO MCM CORPORATEWATCH THEREAFTER THE COUPON RISES ANNUALLY TO 675 7 8 AND 9 THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST TENNESSEE BANK NA FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF DEBENTURES DUE APRIL 28 1997 PRICED AT PAR TO YIELD 62 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE PRICED AT A SPREAD OF 16 BASIS POINTS ABOVE TREASURYS WILL BE SOLD THROUGH UNDERWRITERS LED BY DISCOUNT CORP OF NEW YORK FEDERAL NATIONAL MORTGAGE ASSOCIATION 150 MILLION OF MULTIPLE STEPUP MEDIUMTERM NOTES DUE APRIL 27 1999 PRICED INITIALLY AT PAR TO YIELD 6625 ACCORDING TO MCM CORPORATEWATCH THEREAFTER THE COUPON RISES ANNUALLY TO 6875 7125 7625 8125 AND 722 THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 50 BASIS POINTS ABOVE COMPARABLE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO HELLER FINANCIAL INC 200 MILLION OF SENIOR FLOATINGRATE NOTES DUE APRIL 27 1999 PRICED 25 BASIS POINTS ABOVE THREEMONTH LONDON INTERBANK OFFERED RATE AT 99645 TO YIELD 33 BASIS POINTS ABOVE THREEMONTH LIBOR ACCORDING TO MCM CORPORATEWATCH THE NOTES WILL FLOAT AND PAY QUARTERLY AT 25 BASIS POINTS ABOVE THE THREEMONTH LIBOR RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S RATINGS GROUP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC HELLER IS A UNIT OF FUJI BANK LTD SOCIETY NATIONAL BANK 400 MILLION OF BANK NOTES PRICED IN TWO PARTS THROUGH LEAD MANAGER JP MORGAN SECURITIES INC ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 200 MILLION OF BANK NOTES DUE APRIL 25 1996 WAS PRICED AS 6S AT 9987 TO YIELD 607 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 40 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 200 MILLION OF BANK NOTES DUE APRIL 25 1997 WAS PRICED AS 65S AT 99812 TO YIELD 657 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 50 BASIS POINTS ABOVE TREASURYS BOTH ISSUES ARE RATED DOUBLEA3 BY MOODY'S AND SINGLEA BY S&P SOCIETY NATIONAL BANK IS A UNIT OF SOCIETY CORP CCUBE MICROSYSTEMS INC INITIAL OFFERING OF 24 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC CONAGRA CAPITAL LC 100 MILLION OF CUMULATIVE PERPETUAL PREFERRED STOCK PRICED AT 25 EACH WITH A 9 DIVIDEND YIELD ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR FIVE YEARS IS RATED DOUBLEB2 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC CONAGRA CAPITAL IS A UNIT OF CONAGRA INC SOFTWARE PROFESSIONALS INC INITIAL OFFERING OF 11 MILLION COMMON SHARES PRICED AT 550 EACH THROUGH UNDERWRITERS LED BY LH ALTON & CO AND LAIDLAW EQUITIES INC ALBANY COUNTY NY 1485 MILLION OF SOUTH MALL CONSTRUCTION REFUNDING BONDS PRICED BY A FIRST ALBANY CORP GROUP THE ISSUE INCLUDES 44615 MILLION SERIES 1994A BONDS PRICED TO YIELD FROM 335 IN 1995 TO 52 IN 2001 YIELDS FOR THE 10384 MILLION SERIES 1994B BONDS RANGE FROM 375 IN 1995 TO 52 IN 2001 THE NONCALLABLE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P TEXAS PUBLIC FINANCE AUTHORITY 31723 MILLION OF SERIES 1994 IMPROVEMENT BONDS APPARENTLY WON BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 43 IN 1996 TO 615 IN 2013 AND 2014 BOTH MOODY'S AND S&P HAVE RATED THE BONDS DOUBLEA FEDERAL HOME LOAN MORTGAGE CORP 625 MILLION OF REALESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1730 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE MATURITY OF 356 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REMIC SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1730 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE MATURITY OF 356 MONTHS CHRYSLER CORP 15 BILLION OF AUTOLOAN ASSETBACKED CERTIFICATES PRICED IN FIVE PARTS THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO ACCORDING TO MCM CORPORATEWATCH THE CERTIFICATES WERE ISSUED THROUGH PREMIER AUTO TRUST 19942 A SPECIALPURPOSE VEHICLE THE SELLER OF THE CERTIFICATES WAS CHRYSLER FINANCIAL CORP THE SERVICER IS CHRYSLER CREDIT CORP BOTH CHRYSLER UNITS THE 254 MILLION CLASS A1 MONEYMARKET CERTIFICATES WERE PRICED AS 465S AT PAR FOR A BOND EQUIVALENT YIELD OF 4695 THE CERTIFICATES WITH AN AVERAGE LIFE OF 041 YEAR WERE RATED P1 BY MOODY'S SINGLEA1PLUS BY S&P D1PLUS BY DUFF & PHELPS CO AND F1PLUS BY FITCH INVESTORS SERVICE INC THE 390 MILLION CLASS A2 FLOATINGRATE NOTES WERE PRICED AT PAR TO FLOAT EIGHT BASIS POINTS ABOVE THE ONEMONTH LIBOR THE CERTIFICATES WITH AN AVERAGE LIFE OF 134 YEARS WERE RATED TRIPLEA BY THE FOUR RATING AGENCIES THE CERTIFICATES CARRY AN 11 CAP THE 42475 MILLION CLASS A3 TOTAL RATEOFRETURN CERTIFICATES WERE PRICED AS 635S AT 999351 TO YIELD 646 A 43BASISPOINT SPREAD ABOVE THE TREASURY'S THREEYEAR NOTE THE CERTIFICATES WITH AN AVERAGE LIFE OF 29 YEARS WERE RATED TRIPLEA BY THE FOUR RATING AGENCIES THE 375 MILLION CLASS A4 PASSTHROUGH CERTIFICATES WERE PRICED AS 6S AT 999458 TO YIELD 611 A 47BASISPOINT SPREAD ABOVE THE TREASURY'S TWOYEAR NOTE THE CERTIFICATES WITH AN AVERAGE LIFE OF 174 YEARS WERE RATED TRIPLEA BY THE FOUR AGENCIES THE 5625 MILLION CLASS B SUBORDINATED CERTIFICATES WERE PRICED AS 65S AS 99913 TO YIELD 663 A 925BASISPOINT SPREAD ABOVE TREASURYS THE CERTIFICATES WITH AN AVERAGE LIFE OF 237 YEARS WERE RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P ABBEY NATIONAL TREASURY SERVICES PLC UK PARENT 150 BILLION ITALIAN LIRE OF 9625 EUROBONDS DUE JUNE 15 2004 AT ISSUE PRICE 1003 VIA CREDITO ITALIANO AND BANCA NAZIONALE DEL LAVORO BONDS YIELD 989 AFTER FEES OF TWO CALLABLE ANNUALLY AT PAR FROM JUNE 15 1996 GUARANTOR ABBEY NATIONAL PLC AUSTRIA SOVEREIGN 60 BILLION ITALIAN LIRE OF 85 EUROBONDS DUE OCT 15 2004 AT ISSUE PRICE 9918 VIA DEUTSCHE BANK AG LONDON BONDS WILL TRADE INTERCHANGEABLY WITH 200 BILLION LIRE OF IDENTICAL BONDS OUTSTANDING FEES UNDISCLOSED OTHER TERMS ARE UNCHANGED BADENWUERTTEMBERG LFINANCE NV GERMAN PARENT TWO BILLION MARKS OF 6 GLOBAL BONDS DUE MAY 10 1999 AT ISSUE AND REOFFER PRICE 992 VIA DEUTSCHE BANK AG JP MORGAN GMBH AND SALOMON BROTHERS AG BONDS YIELD 619 A SPREAD OF 36 BASIS POINTS OVER COMPARABLE GERMAN GOVERNMENT NOTE GUARANTOR LANDESKREDITBANK BADENWUERTTEMBERG FEES 025 HALIFAX BUILDING SOCIETY UK 100 MILLION OF CAPPED FLOATINGRATE EURONOTES DUE MAY 1998 AT ISSUE AND REOFFER PRICE 995 VIA SAMUEL MONTAGU & CO AND JP MORGAN SECURITIES LTD PAYABLE QUARTERLY AT THREEMONTH LIBOR PLUS 025 POINT COUPON CAPPED AT 10 FEES 02 KSC CAPITAL OF AMERICA INC JAPANESE PARENT 62 BILLION YEN OF 28 EUROBONDS DUE AUG 4 1995 AT ISSUE PRICE 10025 VIA MERRILL LYNCH INTERNATIONAL LTD COUPON AGREEMENT WITH KAWASAKI STEEL CORP FEES 025 LONGTERM CREDIT BANK OF JAPAN JAPAN 100 BILLION YEN OF 28 TWOYEAR DEBENTURES AT THE ISSUE PRICE PAR THE BANK SAID THE COUPON IS 04 PERCENTAGE POINT HIGHER THAN THE 100 BILLION YEN 24 TWOYEAR BONDS THE FINANCE MINISTRY AUCTIONED TUESDAY AT THE AVERAGE PRICE OF 9977 TO YIELD 2516 9404210021 940421 POLITICS & PEOPLE THERE IS NO CLINTON FOREIGN POLICY BY ALBERT R HUNT HERE'S A REAL OXYMORON THE CLINTON DOCTRINE OR THE SURREAL NOTION THAT THIS ADMINISTRATION'S FOREIGN POLICY HAS A COHERENT STRATEGIC ARCHITECTURE THIS WAS ILLUSTRATED ON MEET THE PRESS THIS MONTH WHEN SECRETARY OF STATE WARREN CHRISTOPHER INSISTED THE PRESIDENT WAS TRYING TO MEET WEEKLY WITH TOP FOREIGN POLICY ADVISERS WE'RE HAVING TWO NEXT WEEK BECAUSE WE MISSED LAST WEEK BECAUSE HE WAS ON THE ROAD WHILE MR CLINTON DID TRAVEL THAT WEEK HE WAS AT THE WHITE HOUSE FOR TWO FULL DAYS APPARENTLY HOWEVER HE COULDN'T FIND TIME TO SQUEEZE IN AN HOUR WITH HIS TOP FOREIGN POLICY ADVISERS ORDINARILY WHETHER A MEETING IS HELD ONE WEEK OR NOT IS IRRELEVANT BUT NOT SO WITH A FOREIGN POLICY THAT IS MARKED BY DRIFT AD HOC FLIPFLOPS AND PRECIOUS LITTLE CLARITY THIS IS PRODUCING AN UNSETTLING UNDERCURRENT IN WASHINGTON ONE DEMOCRATIC SENATOR VERY SUPPORTIVE OF CLINTON WORRIES THAT THIS ADMINISTRATION CONNOTES NOTHING BUT WEAKNESS WHEN IT COMES TO FOREIGN POLICY ADDING THAT EVEN MORE THAN DOMESTIC POLICY THE PRIMARY CONSIDERATION ON EVERY FOREIGN POLICY ISSUE SEEMS TO BE WHAT THE IMPACT WILL BE POLITICALLY AT A LUNCHEON WITH REPORTERS THIS WEEK A SENIOR WHITE HOUSE AIDE IS ASKED WHY AGAIN IN CONTRAST TO DOMESTIC POLICIES THE PRESIDENT'S PERFORMANCE IN FOREIGN POLICY SEEMS AT SUCH VARIANCE WITH THE 1992 CAMPAIGN HE LAMELY REPLIES THAT THE PRESIDENT HAS BEEN CONSISTENT ON THE PRIMACY OF ECONOMICS IN FOREIGN POLICY AND ON THE MIDEAST THE FORMER WAS INEVITABLE AND THIS ADMINISTRATION HAS HAD LITTLE TO DO WITH THE LATTER HE DIDN'T MENTION BOSNIA CHINA HAITI OR RUSSIA ZBIGNIEW BRZEZINSKI NATIONAL SECURITY ADVISER UNDER THE LAST DEMOCRATIC ADMINISTRATION AND A 1992 SUPPORTER OF BILL CLINTON SEES THE CAUSES CLEARLY THIS PRESIDENT IS GENERALLY DISENGAGED HE'S JUST NOT THAT INTERESTED IN FOREIGN POLICY HIS PRIORITY ON DOMESTIC ISSUES BASICALLY IS RIGHT BUT HE HAS CARRIED IT TO EXTREMES AND BECOME INDIFFERENT TO FOREIGN POLICY HE HAS A TEAM OF ADVISERS WHO BASICALLY ARE DEFERENTIAL AND NOT VERY ASSERTIVE IN GETTING HIS ATTENTION OR IN FORMULATION OF POLICY THERE'S A NATIONAL MOOD THAT REINFORCES THE FOREGOING PROBLEMS THIS IS THE MOST DISENGAGED PRESIDENT IN MY LIFETIME LAMENTS MR BRZEZINSKI AND THAT COULD LEAD TO DISASTER GEOPOLITICALLY THE RESPONSE OF SOME CLINTON LOYALISTS BUTTRESSED BY THE 2 MILLION OF POLLS THAT STAN GREENBERG DOES FOR THE WHITE HOUSE IS THAT THIS PRESIDENT WAS ELECTED TO FOCUS ON DOMESTIC PROBLEMS FOREIGN POLICY IS EXTRANEOUS TO MOST AMERICANS CLEARLY HE'S ENGAGED KNOWLEDGEABLE AND HAS A DEFINITE SENSE OF PRIORITIES ON THE DOMESTIC FRONT MOREOVER SOME OF THE INTERNATIONAL PROBLEMS ARE BEYOND BILL CLINTON'S CONTROL THE MOST PROPITIOUS MOMENT FOR ANY BOSNIAN INTERVENTION WAS THREE OR FOUR YEARS AGO FOR ALL THE CRITICISMS ABOUT THE ADMINISTRATION'S INDECISIVENESS ON KOREA IT WAS UNDER THE REPUBLICANS IN 1989 THAT NORTH KOREA CLOSED DOWN ITS NUCLEAR REACTOR FOR 100 DAYS STARTING ITS DEVELOPMENT OF WEAPONSGRADE PLUTONIUM THE PRESIDENT HASN'T BEEN HELPED ON CRITICAL DECISIONS LIKE THE TRADEOFF BETWEEN ECONOMIC TIES AND HUMAN RIGHTS IN US RELATIONS WITH CHINA WHEN AMERICAN BUSINESSMEN OPENLY SIDE WITH THE DESPOTS RUNNING CHINA FURTHER THERE'S NOT A COMPETING WORLD VIEW THAT MAKES A LOT OF SENSE BUSH SECRETARY OF STATE LAWRENCE EAGLEBURGER FOR EXAMPLE LAST WEEKEND DECLARED THAT WHILE HE HAD OPPOSED THE USE OF FORCE IN BOSNIA THE ONLY ANSWER NOW IS A VERY HEAVY USE OF AIR POWER THE PARALLEL TO THE TRAGIC RATIONALIZATION FOR VIETNAM WAS IMMEDIATELY SPOTTED BY REPUBLICAN SEN JOHN MCCAIN A FORMER NAVY FIGHTER PILOT AND VIETNAM POW WE BOMBED THE PHAN WA BRIDGE WE BOMBED HAIPHONG WE BOMBED HANOI AND AIR POWER ALONE WILL NOT DO THE JOB YET MORE THAN PROBLEMS WITH ANY SPECIFIC POLICY PRESIDENT CLINTON HAS NO STRATEGIC VIEW A LARGER SENSE OF THE POSTCOLD WAR EUROPE HE WOULD LIKE TO HELP SHAPE OR MORE IMPORTANT THE SECURITY STRUCTURES IN THE PACIFIC HE HAS CONSISTENTLY OVERESTIMATED RUSSIA AND HAS FOOLISHLY UNDERCUT THE OTHER FORMER SOVIET REPUBLICS AND THE NATIONS OF EASTERN EUROPE IN THE PROCESS HIS 1992 CAMPAIGN CRITICISM THAT GEORGE BUSH BY FAILING TO OFFER A COMPELLING RATIONALE FOR AMERICA'S CONTINUED ENGAGEMENT IN THE WORLD INVITED A NEW BIRTH OF ISOLATIONISM ON THE LEFT AND ON THE RIGHT NOW APPEARS AUTOBIOGRAPHICAL SURE THESE ARE UNCHARTED WATERS BUT IN THE YEARS IMMEDIATELY FOLLOWING WORLD WAR II THERE ALSO WAS A PUBLIC IMPULSE TO TURN INWARD DESPITE THE EMERGING THREAT OF COMMUNISM YET HARRY TRUMAN ASSISTED BY POWERFUL ADVISERS DEAN ACHESON AND GEORGE MARSHALL OVERSAW THE CREATION OF THE TRUMAN DOCTRINE THE MARSHALL PLAN AND THE POLICY OF COMMUNIST CONTAINMENT THERE WERE MISTAKES THEY OVERESTIMATED THE ROLE THE UNITED NATIONS WOULD PLAY AND THOUGHT THAT BRITAIN WOULD STILL BE A WORLD POWER BUT THERE WAS A STRATEGIC VIEW AND PRESIDENTIAL LEADERSHIP HOW THEN DOES BILL CLINTON RECOUP THERE'S AN INCREASING REFRAIN IN DEMOCRATIC CIRCLES TO REPLACE THE FOREIGN POLICY ADVISERS TO FIND A MARSHALL OR AN ACHESON THAT'S NOT SO SIMPLE FURTHERMORE THE SACKING OF LES ASPIN AS DEFENSE CHIEF FOUR MONTHS AGO ACHIEVED ONLY ONE PURPOSE IT CREATED A SCAPEGOAT A MORE FORCEFUL PRESENCE IS ESSENTIAL THE ONLY PERSON WITH THE CREDENTIALS AND PERSONA TO PLAY THAT ROLE IN THE CURRENT LINEUP IS VICE PRESIDENT GORE ALSO THE PRESIDENT OUGHT TO HAVE MORE FREQUENT DIALOGUES WITH PEOPLE LIKE MESSRS BRZEZINSKI AND ASPIN WHO THINK SERIOUSLY ABOUT FOREIGN POLICY IN THE FINAL ANALYSIS THOUGH THE PRESIDENT HAS TO REALIZE THERE MAY BE A POLITICAL PRICE AT HOME AS WELL AS ABROAD FOR HIS DISENGAGEMENT HIS PRIORITY SHOULD BE DOMESTIC POLICY VOTERS WERE TURNED OFF THAT PRESIDENT BUSH SEEMED TO CARE MORE ABOUT THE PROBLEMS OF RUSSIA THAN ABOUT THOSE OF WORKINGCLASS AND MIDDLECLASS AMERICANS BUT THEY DON'T EXPECT A FOREIGN POLICY THAT EMBARRASSES US AND THEY DO EXPECT AMERICA TO BE A WORLD LEADER EVEN IF THEY ARE AMBIVALENT ABOUT HOW THAT'S TO BE ACHIEVED 9404210020 940421 BUSINESS BRIEF TYSON FOODS INC MAJORITY STAKE IN TRASGO SA OF MEXICO TO BE ACQUIRED TYSON FOODS INC SAID IT AGREED TO BUY A MAJORITY STAKE IN TRASGO SA MEXICO'S THIRDLARGEST POULTRY PRODUCER AND PROCESSOR TERMS WEREN'T DISCLOSED TYSON BASED IN SPRINGDALE ARK HAS BEEN A MINORITY PARTNER WITH TRASGO SINCE 1988 WHEN THE COMPANIES AGREED TO PRODUCE FURTHERPROCESSED POULTRY PRODUCTS FOR THE JAPANESE MARKET THAT BUSINESS ENDED SEVERAL MONTHS AGO AND TRASGO NOW PROCESSES ONLY LOCAL POULTRY FOR THE DOMESTIC MEXICAN MARKET TRASGO LAST YEAR HAD SALES OF ABOUT 140 MILLION TYSON SAID RAFAEL VILLEGAS WILL REMAIN AS TRASGO'S CHAIRMAN TYSON SAID A TYSON EXECUTIVE WILL MOVE TO MEXICO TO BECOME MANAGING DIRECTOR OF TRASGO 9404210019 940421 INTERNATIONAL KIA MOTORS SLATES ISSUE SEOUL SOUTH KOREA KIA MOTORS CORP SOUTH KOREA'S SECONDLARGEST AUTO MAKER PLANS TO ISSUE A TOTAL OF 70 MILLION OF DEPOSITARY RECEIPTS DRS IN THE US AND EUROBOND MARKETS MAY 12 DETAILS INCLUDING PREMIUMS FOR THE DRS WILL BE FIXED MAY 5 ACCORDING TO A KIA OFFICIAL DAISHIN SECURITIES CO OF KOREA AND MORGAN STANLEY INTERNATIONAL LTD OF THE US WILL SERVE AS THE LEAD UNDERWRITERS FOR THE ISSUANCE THE OFFICIAL SAID 9404210018 940421 BUSINESS BRIEF NS GROUP INC LABOR ACCORD IS APPROVED ENDING STEELUNIT STRIKE NS GROUP INC OF NEWPORT KY SAID THE 450 HOURLY EMPLOYEES AT ITS NEWPORT STEEL CORP APPROVED A FIVEYEAR LABOR AGREEMENT ENDING A TWODAY STRIKE WORKERS AT THE WILDER KY PLANT STRUCK MONDAY AFTER VOTING DOWN A PROPOSED PACT THE WORKERS WHO ARE REPRESENTED BY THE UNITED STEELWORKERS OF AMERICA COMPLAINED THAT NO RAISES WERE OFFERED IN THE FIRST 18 MONTHS OF THE DEAL AND THAT 45 JOBS WERE TO BE LOST THROUGH ATTRITION AND LAYOFFS AND QUESTIONED WHETHER THE COMPANY WAS FINANCIALLY SOUND THE APPROVED AGREEMENT INCLUDES ANNUAL RAISES TOTALING 175 AN HOUR OVER FIVE YEARS SAID RONALD NOEL PRESIDENT OF NEWPORT STEEL A UNION AUDITOR REVIEWED THE COMPANY'S BOOKS BEFORE THE CONTRACT WAS APPROVED MR NOEL SAID THE JOBELIMINATION TARGETS REMAINED THE SAME WORKERS STARTED RETURNING YESTERDAY AFTERNOON 9404210017 940421 BANK REGULATOR SIGNALS MOVE ON DERIVATIVES COMPTROLLER VOICES CONCERN OVER FORPROFIT TRADES AND INTERNAL OVERSIGHT BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE COMPTROLLER OF THE CURRENCY IS MOVING TOWARD TIGHTER REGULATION OF NATIONALLY CHARTERED BANKS' DERIVATIVES TRADING PERHAPS INCLUDING LIMITS ON THE RISKS BANKS CAN TAKE IN USING SUCH INSTRUMENTS COMPTROLLER EUGENE LUDWIG SIGNALED THE EFFORT IN A SPEECH HERE TO THE EXCHEQUER CLUB A GROUP OF FINANCIAL TRADEASSOCIATION EXECUTIVES BECAUSE OF OUR INCREASING CONCERN ABOUT THE RISKS POSED BY EXOTIC AND COMPLEX DERIVATIVE INSTRUMENTS WE ARE LOOKING AT WHETHER THEY ARE APPROPRIATE FOR NATIONAL BANKS AND IF SO TO WHAT EXTENT THEY ARE APPROPRIATE AND WHETHER WE NEED TO TAKE FURTHER REGULATORY ACTION MR LUDWIG SAID IN EXPRESSING THAT CONCERN AND HIS AGENCY'S CONSIDERATION OF TOUGHER ENFORCEMENT THE COMPTROLLER REFLECTED GROWING CRITICISM OF DERIVATIVES TRADING BY MEMBERS OF THE HOUSE BANKING COMMITTEE AND BANKING SECURITIES REGULATORS SOME SIZABLE INVESTORS HAVE BEEN HIT BY RECENT BIG LOSSES IN MORTGAGERELATED AND OTHER DERIVATIVES WITH RISING INTEREST RATES COMPOUNDING OTHER FINANCIAL DIFFICULTIES WITH THE INSTRUMENTS MR LUDWIG SAID HE IS CONSIDERING WHETHER TO PLACE LIMITS ON INVESTMENTS IN DERIVATIVES OR WHETHER SOME OTHER TYPE OF REGULATORY RESPONSE IS APPROPRIATE BANKS OFTEN USE DERIVATIVES WHICH ARE FINANCIAL INSTRUMENTS TIED TO SAY COMMODITIES PRICES OR INTERESTRATE LEVELS AS A HEDGING DEVICE TO MANAGE INTERESTRATE AND OTHER RISKS THAT THEY TAKE IN THE COURSE OF THEIR NORMAL BUSINESS BUT MR LUDWIG IS CONCERNED MAINLY ABOUT THE GROWTH OF SOCALLED PROPRIETARY TRADING WHERE BANKS TAKE POSITIONS IN DERIVATIVES AND OTHER SECURITIES IN SEARCH OF A PROFIT THESE TRADES USE INSURED BANK DEPOSITS THOUGH IT'S A SMALL PART OF THE BANKS' TOTAL TRADING ACTIVITIES MR LUDWIG SAID THE COMPTROLLER ALSO RAISED QUESTIONS ABOUT WHETHER ALL BANKS ADEQUATELY MONITOR THEIR DERIVATIVES TRADING WE ARE STILL NOT COMFORTABLE WITH THE EXTENT OF SENIOR MANAGEMENT AND BOARD KNOWLEDGE AND OVERSIGHT HE SAID IN ADDITION MR LUDWIG EXPRESSED CONCERN ABOUT THE USE OF EXOTIC OR ESPECIALLY COMPLEX INSTRUMENTSCERTAIN KINDS OF COLLATERALIZED MORTGAGE OBLIGATIONS STRUCTURED NOTES AND HIGHLY LEVERAGED OVERTHECOUNTER TRANSACTIONS MR LUDWIG SAID THAT SOME PROMINENT AND SOPHISTICATED INVESTORS HAVE LOST CONSIDERABLE MONEY TRADING SUCH INSTRUMENTS AS PRINCIPALONLY STRIPS WHICH PAY INVESTORS ONLY THE PRINCIPAL ON UNDERLYING MORTGAGES AND INVERSE FLOATERS WITH YIELDS DESIGNED TO FALL WHEN INTEREST RATES RISE OR VICE VERSA MR LUDWIG SAID HIS STAFF HAS COME UP WITH A LIST OF MORE THAN 1200 FINANCIAL DERIVATIVES THAT ARE CURRENTLY OFFERED WITH SUCH NAMES AS HARMFUL WARRANTS WORTHLESS WARRANTS DEATHBACKED BONDS LIMBOS AND HEAVEN AND HELL BONDS DESCRIPTIONS HE SAID SARCASTICALLY THAT ARE OBVIOUSLY DESIGNED TO INSPIRE CONFIDENCE HUNDREDS OF NATIONAL BANKS ARE INVOLVED IN DERIVATIVES TRADING AND THE COMPTROLLER'S OFFICE HAS IDENTIFIED SIX THAT HAVE SET UP PROPRIETARYTRADING DESKS NEXT WEEK THE OFFICE WILL ISSUE 20 PAGES OF FURTHER GUIDANCE TO BANKERS COVERING SUCH TOPICS AS THE DUTIES OF SENIOR MANAGEMENT AND DIRECTORS FOR OVERSEEING DERIVATIVES MONITORING THE RELATIONSHIP OF RISKS AND MEETING DEALERS' RESPONSIBILITIES TO USERS MR LUDWIG SAID LAST OCTOBER THE COMPTROLLER ISSUED ITS FIRST GUIDELINES FOR BANKS IN MANAGING THE RISKS OF FINANCIAL DERIVATIVES NOW THE OFFICE IS DEVELOPING COMPREHENSIVE PROCEDURES FOR EXAMINING THE DERIVATIVES ACTIVITIES OF NATIONALLY CHARTERED BANKS MR LUDWIG SAID SINCE OCTOBER A LOT OF WATER HAS GONE UNDER THE BRIDGE AND SOME OVER THE BRIDGE AND THERE ARE SEVERAL BRIDGES MISSING HE SAID LIKE ANY COMPLEX TOOL HE SAID DERIVATIVES CAN BE MISUSED AND ABUSED 9404210016 940421 INTERNATIONAL BRIEF GALERIES LAFAYETTE SA FRENCH RETAILER BROKE EVEN IN 1993 ON 64 SALES DROP FRENCH RETAILING GROUP GALERIES LAFAYETTE SA SAID IT BROKE EVEN LAST YEAR COMPARED WITH NET PROFIT OF 69 MILLION FRANCS 118 MILLION IN 1992 DESPITE THE PLUNGE IN PROFIT GALERIES LAFAYETTE SAID IT WILL HOLD ITS DIVIDEND STEADY AT 11 FRANCS A SHARE REVENUE DECLINED 64 TO 294 BILLION FRANCS FROM 314 BILLION FRANCS WHILE OPERATING PROFIT SKIDDED 74 TO 54 MILLION FRANCS FROM 209 MILLION FRANCS WHILE THE FULLYEAR RESULTS MARKED AN IMPROVEMENT FROM THE FIRST HALF WHEN THE COMPANY HAD AN OPERATING LOSS OF 275 MILLION FRANCS ON A 72 DECLINE IN REVENUE GALERIES LAFAYETTE SAID RIGOROUS MEASURES DURING THE AUTUMN WEREN'T ENOUGH TO PROVIDE SATISFACTORY PROFITS FOR THE FULL YEAR THE MEASURES HOWEVER ARE PRODUCING POSITIVE EFFECTS THE COMPANY SAID IN THE FIRST QUARTER DEPARTMENT STORE SALES WERE SLIGHTLY ABOVE YEAREARLIER LEVELS 9404210015 940421 INTERNATIONAL SOUTH KOREA AGREES TO HASTEN UPGRADE OF MILITARY ACQUIRE USMADE GEAR BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA HAS AGREED TO BEEF UP ITS MILITARY FASTER THAN PREVIOUSLY PLANNED AND BUY AN ARRAY OF SOPHISTICATED USMADE GEAR INCLUDING APACHE ATTACK HELICOPTERS US OFFICIALS SAID SOUTH KOREA CURRENTLY OWNS NO APACHES WHICH ARE MADE BY MCDONNELL DOUGLAS CORP AND ITS FLEET OF COBRA HELICOPTERS HAS BEEN CRITICIZED BY US OFFICIALS FOR BEING UNABLE TO FIGHT AT NIGHT OR IN HEAVY WEATHER TO OUTFIT THE APACHES SEOUL WILL BUY MAVERICK ANTITANK MISSILES AND OTHER PRECISION WEAPONS THE OFFICIALS SAID AFTER A DAY OF TALKS WITH THE GOVERNMENT HERE MAVERICKS ARE MADE BY RAYTHEON CO AND GENERAL MOTORS CORP'S HUGHES AIRCRAFT CO IN SIMILAR MODERNIZATION MOVES THE SOUTH ALSO WILL BEGIN EQUIPPING ITS TROOPS WITH NIGHTVISION GOGGLES AND GLOBAL POSITIONING SATELLITE SYSTEMS WHICH ENABLE TROOPS TO PINPOINT THEIR LOCATIONS IT ALSO WILL ACQUIRE MORESECURE COMMUNICATIONS GEAR AND AS EXPECTED BUY NINE COUNTERBATTERY ANTIARTILLERY RADAR SYSTEMS TO AUGMENT THE TWO IT ALREADY OWNS THE OFFICIALS SAID OVER THE PAST TWO YEARS NORTH KOREA HAS RAPIDLY INCREASED TO ABOUT 10000 THE NUMBER OF ARTILLERY PIECES IT HAS DEPLOYED ALONG THE DEMILITARIZED ZONE SEPARATING THE TWO KOREAS A US OFFICIAL SAID HE WASN'T ABLE TO PROVIDE DETAILS ABOUT THE PLANNED PURCHASING SCHEDULE EXCEPT TO SAY THAT HE EXPECTS IT TO BEGIN SOON IN ADDITION SOUTH KOREA AND THE US SAID THAT BECAUSE NORTH KOREA HAD FAILED TO PERMIT FULL INSPECTION OF ITS NUCLEAR PROGRAM THE LARGESCALE MILITARY EXERCISE CALLED TEAM SPIRIT WHICH HAD BEEN SUSPENDED AS A GOODWILL GESTURE TO PYONGYANG WOULD BE RESCHEDULED FOR LATER THIS YEAR PROBABLY NOVEMBER THE RESUMPTION OF PLANNING FOR THE 100000MAN USSOUTH KOREAN EXERCISE WHICH NORTH KOREA HAS CALLED PROVOCATIVE HAD BEEN EXPECTED SINCE PYONGYANG RENEGED LAST MONTH ON AN AGREEMENT TO ALLOW INTERNATIONAL NUCLEAR REGULATORS TO INSPECT ITS PROGRAM FULLY US OFFICIALS ALSO SAID THAT THE DAY OF TALKS BETWEEN DEFENSE SECRETARY WILLIAM PERRY AND TOP SOUTH KOREAN OFFICIALS HIGHLIGHTED THE UNDERSTANDING BETWEEN THE TWO NATIONS THAT IF CURRENT DIPLOMATIC EFFORTS FAIL THE UNITED NATIONS SHOULD BE ASKED TO IMPOSE SANCTIONS ON NORTH KOREA THE MOVE TO IMPOSE SANCTIONS WHICH THE STALINIST REGIME HAS SAID IT WOULD REGARD AS AN ACT OF WAR COULD COME NEXT MONTH WHEN THE INTERNATIONAL ATOMIC ENERGY AGENCY IS EXPECTED TO REPORT TO THE UN THAT NORTH KOREA APPEARS TO HAVE VIOLATED NUCLEAR SAFEGUARDS SANCTIONS ALSO COULD BE IMPOSED SOMETIME THIS SUMMER WHEN NORTH KOREA'S 25MEGAWATT REACTOR IS EXPECTED TO BE SHUT DOWN FOR REFUELING WESTERN ANALYSTS HAVE WARNED THAT IF NORTH KOREA DIVERTS RADIOACTIVE MATERIAL FROM THE STILLED REACTOR IT COULD DOUBLE THE SIZE OF ITS POTENTIAL NUCLEAR ARSENAL THE REACTOR REFUELING GIVES SOME URGENCY TO OUR DIPLOMACY TO TRY TO GET THAT FUEL UNDER IAEA CONTROL BEFORE IT'S PULLED OUT AND DISAPPEARS INTO THE WOODWORK LIKE THE OTHER PLUTONIUM THAT THEY TOOK OUT DID SECRETARY PERRY TOLD REPORTERS TRAVELING WITH HIM EARLIER THIS WEEK THE EMPHASIS ON MILITARY ACQUISITION IN THE USSOUTH KOREAN TALKS APPEARS TO BE THE RESULT OF A DIPLOMATIC DYNAMIC IN WHICH SOUTH KOREAN OFFICIALS EMPHASIZED THE ABSENCE OF IMMINENT MILITARY DANGER WHILE US OFFICIALS WORRIED ABOUT WHAT WOULD HAPPEN TO SEOUL IF AN IMMINENT THREAT DID DEVELOP HENCE THE TWO SIDES FOCUSED ON MILITARY PREPAREDNESS WHICH SOUTH KOREAN DEFENSE OFFICIALS FEARFUL OF SPOOKING PYONGYANG INSISTED SHOULD BE VIEWED AS A FORM OF DETERRENCE THE MILITARY SITUATION IS MUCH MORE STABLE THAN IT APPEARS FROM THE OUTSIDE CHUNG JOON HO THE SOUTH KOREAN VICE DEFENSE MINISTER SAID AT A NEWS CONFERENCE 9404210014 940421 WHO'S NEWS AMERITECH'S CHIEF NOTEBAERT ASSUMES CHAIRMAN'S TITLE BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO AMERITECH CORP HANDED PRESIDENT AND CHIEF EXECUTIVE RICHARD C NOTEBAERT THE ADDITIONAL TITLE OF CHAIRMAN AT ITS ANNUAL SHAREHOLDER MEETING MR NOTEBAERT WHO WAS NAMED CEO IN JANUARY ASSUMES THE CHAIRMAN'S TITLE FROM WILLIAM L WEISS WHO IS RETIRING AFTER SERVING AS THE REGIONAL BELL TELEPHONE COMPANY'S FIRST AND ONLY CHAIRMAN IN THE DECADE SINCE IT WAS FORMED MR NOTEBAERT 46 TOLD SHAREHOLDERS THAT AMERITECH WILL CONTINUE ITS DISCIPLINED APPROACH TO BUILDING THE INFORMATION HIGHWAY IN ITS FIVESTATE REGION IN THE MIDWEST A NUMBER OF COMPANIES HAVE ANNOUNCED GRAND PLANS IN THIS AREA ONLY TO END UP SCALING THEM BACK POSTPONING THEM OR CANCELING THEM ALTOGETHER MR NOTEBAERT SAID AMERITECH'S POSITION HE ADDED IS SOMEWHAT MORE DISCIPLINED YOU WON'T HEAR US HYPING OUR CAPABILITY TO OFFER 500 CHANNELS OF TV AND WE HAVE NO DESIRE TO BECOME JUST ANOTHER CABLE COMPANY AMERITECH IS QUIETLY LAYING THE GROUNDWORK TO EXPAND AN ELECTRONIC HEALTHINFORMATION NETWORK STARTED IN MILWAUKEE IN 1992 INTO A NATIONWIDE SYSTEM IT PLANS TO CREATE NETWORKS IN CINCINNATI AND NASHVILLE TENN AND TO SIGN AGREEMENTS FOR HALF A DOZEN OTHER CITIES ACROSS THE COUNTRY BY YEAR END THE CHICAGOBASED BABY BELL HAS SET PLANS TO WIRE UP 800000 HOMES AND BUSINESSES FOR INTERACTIVE VIDEO SERVICES BY THE END OF THIS YEAR AND ABOUT SIX MILLION CUSTOMERS BY THE END OF THE DECADE MAKING IT AMONG THE MOST AGGRESSIVE OF THE BABY BELLS IN A NEWS BRIEFING YESTERDAY THE NEW AMERITECH CHAIRMAN ALSO TOOK A SWIPE AT AT&T CORP AT&T OPPOSES AMERITECH'S PROPOSAL TO OFFER LONGDISTANCE SERVICE IN ITS REGION EVEN AS AT&T PUSHES STATE REGULATORS IN ILLINOIS TO LET IN NEW RIVALS FOR LOCAL SERVICE MR NOTEBAERT CALLED AT&T'S STANCE SO TRANSPARENT AT&T IS LITERALLY OPPOSED TO COMPETITION WHEREVER THEY ARE BUT IT FAVORS COMPETITION WHEREVER THEY AREN'T THAT'S BEWILDERING COUNTERED AT&T'S VICE PRESIDENT OF LAW AND PUBLIC POLICY MARK ROSENBLUM WHILE AT&T FACES COMPETITION IN ALL OF ITS BUSINESS SEGMENTS THERE IS ONLY ONE PART OF THE TELECOM BUSINESS TODAY THAT DOESN'T HAVE COMPETITION AND THAT'S THE LOCAL SERVICE BUSINESS DOMINATED BY THE BABY BELLS HE SAID 9404210012 940421 CORPORATE FOCUS GM GOES TO GREAT LENGTHS TO MATCH WORKERS AND WORK IDLED EMPLOYEES RESIST TRANSFERS TO BUSTLING PLANTS TEMPORARY HIRES STEP UP BY NEAL TEMPLIN AND JOSEPH B WHITE STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP IS HIRING TEMPORARY WORKERS TO STAFF SOME FACTORIES BECAUSE IT IS UNABLE TO MOVE 8300 IDLED WORKERS WHO ARE RECEIVING VIRTUALLY FULL WAGES FOR STAYING PUT GM IS SO DESPERATE FOR EXTRA HANDS AT FIVE PLANTS THAT IT IS RAFFLING OFF A 10000 VOUCHER TOWARD A NEW CAR TO ENTICE SOME 1100 IDLED EMPLOYEES IN VAN NUYS CALIF TO ATTEND A JOBS FAIR IN TWO WEEKS THAT WILL SHOWCASE TRANSFER OPPORTUNITIES SO FAR THESE WORKERS LAID OFF SINCE AUGUST 1992 HAVE TURNED DOWN LUCRATIVE OFFERS TO ACCEPT JOBS ELSEWHERE INSTEAD OPTING TO KEEP DRAWING VIRTUALLY FULL PAY FOR DOING NOTHING GM'S LABOR PROBLEMS HIGHLIGHT A COSTLY DILEMMA AS THE NO 1 AUTO MAKER STRUGGLES TO TRIM FAT OUT OF ITS UNDERPERFORMING NORTH AMERICAN OPERATIONS AT A TIME WHEN SALES PARTICULARLY OF TRUCKS AND VANS ARE BOOMING GM EXECUTIVES LAST YEAR DEFENDED THE COMPANY'S COSTLY NEW THREEYEAR CONTRACT WITH THE UNITED AUTO WORKERS BECAUSE THEY SAID IT GAVE THEM THE FLEXIBILITY TO MOVE LAIDOFF WORKERS TO PLANTS WHERE THEY WERE NEEDED BUT NOW THE VERY OPPOSITE IS TURNING OUT TO BE TRUE IN SOME LOCATIONS EVEN THOUGH GM HAS ENOUGH IDLED WORKERS TO STAFF TWO ASSEMBLY PLANTS THE COMPANY HAS BEEN FORCED TO PAY HEFTY OVERTIME PREMIUMS TO WORKERS AT SEVERAL ASSEMBLY AND COMPONENT PLANTS AND EVEN HAS HIRED TEMPORARY WORKERS OFF THE STREET TO MEET SURGING DEMAND GM REFUSED TO DISCLOSE HOW MANY TEMPORARY WORKERS IT HAS HIRED OR WHICH LOCATIONS WERE INVOLVED IN A STATEMENT YESTERDAY GM SAID WE'RE CONTINUING TO WORK CLOSELY WITH THE UAW ON PLANS TO MEET OUR STAFFING NEEDS AT VARIOUS PLANTS MEANWHILE WE HAVE HIRED SOME TEMPORARY WORKERS UNTIL WE CAN LOCATE PERMANENT WORKERS FROM AREAS AROUND THE COUNTRY WITH EXCESS EMPLOYEES GM SAID THAT AS RECENTLY AS JANUARY 1993 IT HAD 29600 WORKERS DRAWING LAYOFF BENEFITS BUT THAT NUMBER HAS DECLINED STEADILY THANKS TO A LARGE EARLY RETIREMENT PROGRAM AND REBOUNDING US VEHICLE SALES STILL GM'S ASSEMBLY PLANT IN ARLINGTON TEXAS FOR EXAMPLE IS SHORT 250 WORKERS AND CAN'T GET ENOUGH TRANSFERS THUS ARLINGTON IS ONE OF THE PLANTS PARTICIPATING IN THE VAN NUYS JOBS FAIR UNDER GM'S LABOR CONTRACT WORKERS CANNOT BE FORCED TO ACCEPT TRANSFERS AT PLANTS MORE THAN 50 MILES FROM THEIR HOME PLANT SINCE ARLINGTON ISN'T NEAR ANY OTHER GM PLANT IT'S BEEN SCRAMBLING TO ENTICE LAIDOFF WORKERS TO LOCATE THERE SOME WORKERS DON'T WANT TO TRANSFER TO ARLINGTON BECAUSE THEY FEAR THE PLANT WHICH BUILDS BIG REARWHEELDRIVE CARS WILL BE CLOSED IN TWO OR THREE YEARS SAID MIKE SEILER CHAIRMAN OF THE UAW LOCAL REPRESENTING THE PLANT MR SEILER ARGUES OTHERWISE SAYING THAT GM RECENTLY COMMITTED TO SPEND ANOTHER 80 MILLION MODERNIZING ARLINGTON'S PAINT SHOP AND THAT THE PLANT'S FUTURE IS SECURE THE OTHER PLANTS ATTENDING THE JOBS FAIR IN VAN NUYS INCLUDE GM'S TRUCK ASSEMBLY PLANTS IN SHREVEPORT LA FORT WAYNE IND AND JANESVILLE WIS AND ITS ENGINE PLANT IN TONAWANDA NY GM'S PREVIOUS EFFORTS TO LURE IDLED VAN NUYS EMPLOYEES BACK TO WORK HAVEN'T PRODUCED MUCH SUCCESS LAST YEAR GM OFFERED VAN NUYS WORKERS UP TO 15000 VOUCHERS TOWARD A NEW CAR PLUS 6000 CASH AS AN INCENTIVE TO RETIRE ONLY ABOUT 120 DID SO BECAUSE THEY'RE RECEIVING MORE MONEY BY REMAINING LAID OFF SAID RAY KNUDSON TRUSTEE OF THE UAW LOCAL IN VAN NUYS AS AN ADDED ENTICEMENT GM IS NOW OFFERING VAN NUYS WORKERS UP TO 60000 IN CASH AND MOVING EXPENSES IF THEY ACCEPT A TRANSFER TO ANOTHER PLANT MR KNUDSON SAID VAN NUYS IS AN EXTREME CASE BUT IT IS NOT THE ONLY PLACE WHERE GM IS FINDING IT HARD TO PUT WORKERS AND WORK TOGETHER GM EXECUTIVES SAY THEY ARE NARROWING THE COMPANY'S LABOR COST DISADVANTAGE IN NORTH AMERICA INCREASING PRODUCTIVITY BY 13 LAST YEAR ALONE GM'S US HOURLY WORK FORCE HAS SHRUNK TO 250300 EMPLOYEES CURRENTLY FROM 304000 IN EARLY 1992 IN DECEMBER 1991 FORMER GM CHAIRMAN ROBERT C STEMPEL SAID GM WOULD REDUCE ITS US HOURLY RANKS TO 250000 PEOPLE BY THE MID1990S MR STEMPEL'S SUCCESSOR PRESIDENT JOHN F SMITH JR HAS ACHIEVED THAT GOAL AT LEAST A YEAR AHEAD OF PLAN NEVERTHELESS IN THE MIDST OF THE HOTTEST US AUTO MARKET IN SIX YEARS GM STILL HAS A CADRE OF WORKERS DRAWING LAYOFF PAY THAT'S ROUGHLY EQUIVALENT TO THE TOTAL PAYROLL OF DOW CORNING NO 216 ON THE FORTUNE 500 LIST AND DESPITE RECENT PRODUCTIVITY GAINS GM STILL PUTS ABOUT 25 MORE LABOR HOURS INTO BUILDING ITS AVERAGE US VEHICLE THAN DOES FORD MOTOR CO BOOSTING LABOR PRODUCTIVITY REMAINS ONE OF THE MOST VEXING PROBLEMS MR SMITH FACES EARLIER THIS YEAR THE UNITED AUTO WORKERS UNION STRUCK OR THREATENED TO STRIKE SEVERAL GM OPERATIONS IN PROTEST OF MANAGEMENT ATTEMPTS TO CUT THE RATIO OF WORKERS TO VEHICLES PRODUCED RISING DEMAND NOW APPEARS TO BE MAKING IT EVEN HARDER FOR GM TO CUT BACK GM'S MINIVAN PLANT IN BALTIMORE IS HIRING TEMPORARY WORKERS TO KEEP PACE WITH DEMAND AND NEEDS SOME 200 ADDITIONAL PERMANENT EMPLOYEES UAW OFFICIALS THERE SAY LAST FALL THE UAW AGREED IN NATIONAL CONTRACT TALKS TO MAKE A SPECIAL EXCEPTION TO ITS 50MILE TRANSFER LIMIT TO ALLOW WORKERS FROM GM'S WILMINGTON DEL ASSEMBLY PLANT TO MOVE TO BALTIMORE AT THE TIME THE DELAWARE PLANT WAS SLATED TO CLOSE IN 1996 HOWEVER GM HAS SINCE BACKTRACKED ON ITS PLAN TO CLOSE WILMINGTON AND NOW SAYS IT MAY BUILD A FUTURE SMALL CAR THERE AS A RESULT WORKERS IN WILMINGTON ARE BALKING AT JOB OFFERS FROM BALTIMORE ACCORDING TO ROD TRUMP PRESIDENT OF THE UAW LOCAL REPRESENTING THE BALTIMORE PLANT 9404210011 940421 CONSENT DECREE IS EXPECTED COVERING ATM COMPETITORS WASHINGTON THE JUSTICE DEPARTMENT IS EXPECTED TO ANNOUNCE A CONSENT DECREE FORCING A NETWORK OF BANK AUTOMATIC TELLER MACHINES TO LET COMPETITORS OFFER SOFTWARE AND OTHER PROCESSING SERVICES TO ITS MEMBERS THE DECREE WHICH COULD BE ANNOUNCED TODAY INVOLVES DELAWAREBASED ELECTRONIC PAYMENT SERVICE INC THE COMPANY OPERATES A NETWORK KNOWN AS MONEY ACCESS SERVICE INC ELECTRONIC PAYMENT IS A JOINT VENTURE OF CORESTATES FINANCIAL CORP BANC ONE CORP PNC BANK CORP AND SOCIETY CORP THE DECREE WILL ACCELERATE A DEADLINE FOR ELECTRONIC PAYMENT TO ALLOW COMPETITORS TO OFFER ATM PROCESSING SERVICES TO ITS MEMBERS THE COMPANY SETTLED A LAWSUIT LAST YEAR BY AGREEING TO ALLOW NEW YORK CASH EXCHANGE ANOTHER NETWORK TO PROVIDE ATM PROCESSING SERVICES TO ITS MONEY ACCESS SERVICE SYSTEM BY OCT 1 1995 INDUSTRY PEOPLE SAY THE DECREE COUPLED WITH RECENT STATEMENTS BY JUSTICE DEPARTMENT ANTITRUST OFFICIALS COULD HAVE IMPLICATIONS FOR PENDING MERGERS BETWEEN ATM NETWORKS THE LARGEST SUCH PENDING MERGER IS BETWEEN YANKEE 24 AND NEW YORK CASH EXCHANGE 9404210010 940421 REVIEW & OUTLOOK EDITORIAL MAKE SERBIA PAY THE RATHER MOIST DIPLOMATIC AIR YESTERDAY WAS FULL OF MORE TALK ABOUT WHAT NEXT IN BOSNIA WHATEVER TOUGHSOUNDING RHETORIC EMERGES IN THE CURRENT CYCLE THE ONE POLICY WE TAKE AS FIRM IS PRESIDENT CLINTON'S ASSERTION LATE YESTERDAY AFTERNOON THAT AIR POWER ALONE WILL NOT SETTLE THIS CONFLICT THIS CONFLICT WILL HAVE TO BE SETTLED THROUGH NEGOTIATIONS THAT IS OUR GOAL IS STILL TO DO A DEAL WITH BOSNIAN SERBS WHO HAVE PROVEN THEMSELVES INCAPABLE OF ABIDING BY ANY DEAL CEASEFIRE COMMITMENT OR EVEN RANDOM UTTERANCE THIS ILLOGIC IS GOING TO CONTINUE UNTIL OUR POLICY MAKERS RECOGNIZE THAT THE PROBLEM IS NOT IN BOSNIA BUT IN SERBIA FOR NOW THE WORLD TALKS IN CIRCLES BORIS YELTSIN PROFESSING DISGUST AT THE PERFIDY OF HIS ERSTWHILE SERBIAN FRIENDS WANTS A SUMMIT WITH BILL CLINTON AND EUROPEAN UNION CHIEFTAINS PRESUMABLY TO ESTABLISH A UNITED EASTWEST POSITION ON THE WAR IN BOSNIA WORLD COMMANDERINCHIEF BOUTROS BOUTROSGHALI WANTS PERMISSION FROM NATO TO ORDER AIR STRIKES AGAINST SERB FORCES BESIEGING UN SAFE HAVENS PARTICULARLY THE VERY UNSAFE CITY OF GORAZDE PRESIDENT CLINTON SAYS HE SUPPORTS MR BOUTROSGHALI'S WISH TO SEND US PILOTS INTO BATTLE SO DO HIS NATO ALLIES APPARENTLY BUT NATO AMBASSADORS MEETING IN BRUSSELS YESTERDAY DECIDED TO SEEK MORE MILITARY ADVICE OVER THE NEXT FEW DAYS NOW SET ALL THIS AGAINST THE VIEWS OF RADOVAN KARADZIC LEADER OF THE BOSNIAN SERBS WHOSE INDISCRIMINATE SHELLING HAS KILLED 345 PEOPLE AND WOUNDED MORE THAN 1000 IN GORAZDE IN THE PAST THREE WEEKS ACCORDING TO A UN OFFICIAL ON THE GROUND HAVING ACCOMPLISHED THAT MR KARADZIC YESTERDAY DECLARED THE SERBIAN SIDE UNILATERALLY PROCLAIMS PEACE IN GORAZDE HE ADDED WITH THIS THE GORAZDE CRISIS COMES TO AN END EVEN AS HE SPOKE HIS ARTILLERYMEN CONTINUED TO SHELL GORAZDE LATER THREE ROCKETS HIT THE CITY'S HOSPITAL KILLING AT LEAST 22 PEOPLE IN AND NEAR THE BUILDING THE WEST'S MISTAKE IN THIS EXERCISE HAS BEEN TO LEGITIMIZE THE FICTION THAT THE BOSNIAN SERBS ARE CONDUCTING THIS AGGRESSION ALL ON THEIR OWN MR KARADZIC HAS BEEN PERMITTED TO FRONT FOR THE REAL MALEFACTOR PRESIDENT SLOBODAN MILOSEVIC OF SERBIA THIS OBSESSION WITH THE BOSNIAN SERBS IN TURN HAS MEANT THAT THE WEST HAS NEVER PRESENTED OR THOUGHT ABOUT PRESENTING SERBIA ITSELF AND MILOSEVIC OF BELGRADE WITH A CREDIBLE THREAT OR MORE TO THE POINT A MILITARY BLOW THAT WOULD GET HIS ATTENTION THE WEST'S INDECISION ENABLED THE RUSSIANS TO STEP IN AS MEDIATORS THE QUESTION IS WHETHER THE RUSSIANS ARE SUFFICIENTLY AWARE OF HOW PERILOUS THE MATTER IS FOR THEIR RELATIONS WITH THE WEST WHICH PRESUMABLY STILL HAVE SOME IMPORTANCE FOR THEM SPECIFICALLY IT IS LEGITIMATE TO WONDER IF THE IMPERIAL NEAR ABROAD OF WHICH RUSSIAN OFFICIALS NOW TALK EXTENDS BEYOND DEMANDING ALLEGIANCE FROM THE FORMER SOVIET REPUBLICS BUT ALSO REACHES OUTWARD TO SUCH SYMPATHETIC AUTOCRATS AS THE ONES NOW RUNNING SERBIA IF THE MAJOR POWERS WANT TO GET SERIOUS ABOUT THIS MESS WHICH HAS THE POTENTIAL FOR EMBROILING RUSSIA AND THE WEST IN A DANGEROUS DISPUTE THERE IS AN OBVIOUS COURSE TAKE THE DECISIONS OUT OF THE HANDS OF MR BOUTROSGHALI WHO OBVIOUSLY HAS NO WORKABLE CHAIN OF COMMAND AND NEVER WILL FORGET AIR STRIKES AGAINST THE BOSNIAN SERBS INSTEAD SELECT MILITARY TARGETS IN SERBIA ITSELF GIVING THE NATO COMMAND THE AUTHORITY TO RUN THE ASSAULT ACCORDING TO SOUND MILITARY PRINCIPLES WITH NO IMPOSSIBLE RESTRICTIONS ON ALLIED PILOTS DEVISED BY THE PERPLEXED STRATEGISTS AT UN HEADQUARTERS TELL MR MILOSEVIC TO GET HIS TANKS AND ARTILLERY OUT OF BOSNIA THE ALTERNATIVE TO THAT IS TO CONTINUE THE NEGOTIATION TRACK THAT MR CLINTON HUGGED AGAIN YESTERDAY WOULD SOMEONE ASK THIS ADMINISTRATION TO EXPLAIN IN A PERSUASIVE WAY WHY IT BELIEVES THE BOSNIAN SERBS WILL EVER KEEP ANY AGREEMENT AFTER THEY'VE VIOLATED A LONG STRING OF AGREEMENTS SO THAT THEY COULD GET BACK TO THEIR FIRST LOVE CREATING THE DISGUSTING SCENES FROM BOSNIA SEEN FOR THE PAST TWO YEARS AGAIN WE CONTINUE TO WORRY THAT THIS ADMINISTRATION MAY NOT BE UP TO SUSTAINING ANY POLICY BEYOND TALK ITS OWN FIRST LOVE BUT AT SOME POINT THERE NEEDS TO BE AT LEAST A RECOGNITION ON THE PART OF THE LARGER POLITICAL COMMUNITY THAT THERE ARE WIDER RISKS HERE BOTH FOR THE WEST AND RUSSIA SERBIA NEEDS TO KNOW THAT THE COST TO ITS BRAND OF HOMICIDAL ADVENTURE IS GOING TO RISE DRAMATICALLY IF IT DOESN'T START MEETING THE STANDARDS OF MORALITY AND BEHAVIOR THAT THE WESTERN PEOPLES DEMAND 9404210009 940421 DEAN WITTER REPORTS 1STQUARTER NET ROSE 54 TO 2095 MILLION NEW YORK DEAN WITTER DISCOVER & CO SAID NET INCOME JUMPED 54 IN THE FIRST QUARTER TO A RECORD 2095 MILLION THANKS TO BIG PROFIT GAINS IN THE FIRM'S BROKERAGE AND CREDITCARD GROUPS DEAN WITTER IN ITS THIRD FULL QUARTER AS A PUBLIC COMPANY EARNED 123 A SHARE FAR EXCEEDING ANALYSTS' CONSENSUS EXPECTATIONS OF 94 CENTS A SHARE TRACKED BY ZACKS INVESTMENT RESEARCH IN THE YEAREARLIER PERIOD DEAN WITTER EARNED 1364 MILLION OR 80 CENTS A SHARE ON A PRO FORMA BASIS WE GOT STEADY REVENUE GROWTH IN BOTH OUR CREDITCARD BUSINESS AND OUR ASSETS UNDER MANAGEMENT AND WE DID A VERY CREDIBLE JOB MANAGING OUR EXPENSES SAID PHILIP J PURCELL CHAIRMAN AND CHIEF EXECUTIVE OFFICER NET OPERATING REVENUE TOTAL REVENUE MINUS INTEREST EXPENSE AND THE PROVISION FOR LOSSES ON RECEIVABLES CLIMBED 17 TO 127 BILLION OPERATING EXPENSES AS A PERCENTAGE OF NET OPERATING REVENUE DECLINED AT BOTH THE CREDITCARD SERVICES AND SECURITIES GROUPS DEAN WITTER'S BROKERAGE OPERATIONS POSTED A 24 GAIN IN EARNINGS TO 855 MILLION COMMISSION REVENUE CLIMBED 9 TO 2476 MILLION AS INVESTOR INTEREST IN EQUITIES AND FUTURES REMAINED STRONG BUT PRINCIPAL TRANSACTIONS USING DEAN WITTER'S OWN MONEY SLUMPED 19 TO 924 MILLION LARGELY BECAUSE OF REDUCED FIXEDINCOME BUSINESS INVESTMENT BANKING REVENUE FELL 14 TO 84 MILLION PRIMARILY DUE TO A DECREASE IN REVENUE FROM CLOSEDEND FUND UNDERWRITINGS THE FIRM'S CREDITCARD BUSINESS EARNED 124 MILLION UP 85 FROM 672 MILLION INVESTORS RESPONDED BULLISHLY DRIVING DEAN WITTER'S STOCK UP 2 TO 3575 ON THE NEW YORK STOCK EXCHANGE 9404210008 940421 MARKETING & MEDIA VIACOM'S SHOWTIME TO ADD FIVE SERVICES TEST WEEKEND MOVIES NEW YORK VIACOM INC'S SHOWTIME NETWORKS INC SAID IT WILL INTRODUCE FIVE NEW PAYTV SERVICES AND WILL TEST MONTHLY SUBSCRIPTIONS TO WEEKENDSONLY SERVICE OF THE MOVIE CHANNEL THREE OF THE NEW SERVICES WILL BE LAUNCHED LATER THIS YEAR AND NEXT YEAR SHOWTIME HOPES CABLE OPERATORS WILL BE DRAWN TO CARRY THE NEW SERVICES BECAUSE THEIR REVENUE IS UNREGULATED UNDER THE 1992 CABLE ACT IN A NEW MARKETING TWIST SHOWTIME ALSO SAID IT WILL TEST A WEEKEND SERVICE OF THE MOVIE CHANNEL OFFERING 20 TITLES A WEEKEND FOR CONSUMERS WHO HAVE RESISTED BUYING PREMIUM SERVICES BECAUSE OF COST THE COMPANY SAYS IT THINKS EXISTING CUSTOMERS ARE LOYAL AND UNLIKELY TO SWITCH TO WEEKEND SERVICE AMONG THE NEW CHANNELS SHOWTIME'S EN ESPANOL WHICH WILL OFFER MUCH OF SHOWTIME'S PRIMETIME SCHEDULE DUBBED IN SPANISH WILL KICK OFF LATER THIS YEAR SHOWTIME FAMILY TELEVISION BEGINS IN 1995 AS DOES SHOWTIME ACTION TELEVISION WHICH WILL OFFER ACTION/ADVENTURE MOVIES DATES FOR THE START OF SHOWTIME COMEDY TELEVISION AND A SHOWTIME FILM FESTIVAL CHANNEL HAVEN'T BEEN SET LARGELY BECAUSE CABLE OPERATORS HAVE LIMITED CHANNEL CAPACITY UNTIL THEY REBUILD THEIR SYSTEMS THE NEW SERVICES WILL BE PRICED AROUND 2 TO 5 A MONTH COMPARED WITH 9 TO 12 CHARGED FOR SHOWTIME AND ITS LARGEST COMPETITOR SERVICE TIME WARNER INC'S HOME BOX OFFICE INC SHOWTIME RECENTLY BEGAN FLIX A LESSEXPENSIVE MINIPAY MOVIE SERVICE TO ENCOURAGE VIEWERS TO BUY TWO OR MORE SERVICES SHOWTIME SAID IT WILL ENCOURAGE CABLE OPERATORS TO GIVE THE NEW SERVICES FREE TO CUSTOMERS WHO ALREADY SUBSCRIBE TO VIACOM'S SHOWTIME AND MOVIE CHANNEL 9404210007 940421 TRAVELERS NET SURGED IN THE FIRST QUARTER REFLECTING MERGER NEW YORK TRAVELERS INC SAID FIRSTQUARTER NET INCOME ALMOST DOUBLED REFLECTING THE MERGER OF TRAVELERS CORP AND PRIMERICA CORP AT THE END OF 1993 NET INCOME TOTALED 3398 MILLION OR 98 CENTS A SHARE INCLUDING INVESTMENT PORTFOLIO LOSSES OF 28 MILLION A YEAR EARLIER NET WAS 1726 MILLION OR 74 CENTS A SHARE INCLUDING ACCOUNTING CHANGES THAT RESULTED IN A GAIN OF 277 MILLION AND A CHARGE OF 344 MILLION YEAREARLIER RESULTS ARE ONLY FOR THE FORMER PRIMERICA REVENUE ROSE TO 477 BILLION FROM 130 BILLION SANFORD I WEILL CHAIRMAN AND CHIEF EXECUTIVE SAID THE SMITH BARNEY SHEARSON BROKERAGE BUSINESS HAD OPERATING EARNINGS OF 1443 MILLION UP FROM 542 MILLION A YEAR EARLIER CONSUMER FINANCE OPERATING EARNINGS ROSE 6 TO 12 MILLION WHILE EARNINGS FROM MUTUAL FUNDS AND ASSET MANAGEMENT DECLINED SLIGHTLY TO 82 MILLION FROM 83 MILLION UNDER NEW ACCOUNTING RULES CERTAIN ASSETS OF THE FORMER TRAVELERS CORP WERE MARKED TO MARKET OR ASSESSED AT THEIR CURRENT MARKET VALUES BECAUSE OF THE SUBSEQUENT MARKET DECLINE THE PORTFOLIO HAS UNREALIZED LOSSES OF 581 MILION AT MARCH 31 MR WEILL SAID THE TRAVELERS INSURANCE BUSINESS IS STARTING TO SEE BENEFITS FROM COST REDUCTIONS AS WELL AS ADDITIONAL PRODUCTS HE SAID SMITH BARNEY SHEARSON EXPECTS TO BEGIN DISTRIBUTION OF A NEW TRAVELERS ANNUITY PRODUCT SOME TIME IN JUNE LIFE INSURANCE SERVICES' EARNINGS ROSE TO 1214 MILLION FROM 536 MILLION AND PROPERTY AND CASUALTY INSURANCE SERVICES' PROFIT ROSE TO 596 MILLION FROM 37 MILLION TRAVELERS STOCK SLIPPED 125 CENTS TO 34625 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 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 9404210006 940421 BUSINESS BRIEF AIRBORNE FREIGHT CORP FIRSTPERIOD NET IS EXPECTED TO REACH AT LEAST 4 MILLION AIRBORNE FREIGHT CORP SEATTLE SAID IT EXPECTS TO REPORT EARNINGS BETWEEN 23 CENTS AND 25 CENTS A SHARE FOR THE FIRST QUARTER IN LINE WITH ANALYSTS' EXPECTATIONS THE COMPANY'S CHIEF FINANCIAL OFFICER ROY C LILJEBECK SAID MR LILJEBECK SAID HE HAD NO PROBLEM WITH ANALYSTS' PROJECTIONS FOR THE QUARTER WHICH CALLED FOR NET INCOME OF BETWEEN 4 MILLION AND 5 MILLION ON REVENUE OF BETWEEN 450 MILLION AND 470 MILLION IN LAST YEAR'S FIRST QUARTER THE AIRFREIGHT COMPANY EARNED 74 MILLION OR 35 CENTS A SHARE INCLUDING A POSITIVE EFFECT FROM AN ACCOUNTING CHANGE OF 38 MILLION OR 20 CENTS A SHARE HE ALSO SAID THE COMPANY EXPECTS TO CLOSE OUT THE YEAR IN LINE WITH EXPECTATIONS WHICH CALL FOR EARNINGS OF BETWEEN 185 AND 220 A SHARE OR BETWEEN 407 MILLION AND 462 MILLION ON REVENUE OF ROUGHLY 2 BILLION FOR ALL OF 1993 THE COMPANY EARNED 363 MILLION OR 164 A SHARE ON REVENUE OF 17 BILLION IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE AIRBORNE CLOSED AT 3225 DOWN 25 CENTS 9404210005 940421 LEISURE & ARTS FILM JOHN WATERS'S HOMICIDAL HOMEMAKER BY JULIE SALAMON A SUBURBAN HOUSEWIFE ABOUT TO BE CORNERED AFTER SHE'S BEEN ON A KILLING SPREE ASKS HER SON DO YOU THINK I NEED A LAWYER HER SON A WORLDLY YOUNG FELLOW GRINS PROUDLY YOU NEED AN AGENT HE TELLS HER THERE ARE MANY WAYS TO MOCK THE NATIONAL OBSESSION WITH MULTIPLE MURDER BUT IT'S UNLIKELY THAT ANY OF THEM COULD BE MORE CONSISTENTLY FUNNY THAN THE BREEZILY CAMP COMEDY CALLED SERIAL MOM OUT OF THE BLUE THIS APPARENT PARAGON OF MATERNAL GENTILITY KATHLEEN TURNER STOPS GRINNING AND BEARING PEOPLE WHO ANNOY HER AND STARTS TO KILL THEM ONE AFTER ANOTHER SHE TAKES REVENGE ON A WOMAN WHO STEALS HER PARKING PLACE THEN ASSASSINATES A SUPERCILIOUS TEACHER WHO CRITICIZES HER SON AND THEN DISEMBOWELS A BOY WHO DITCHES HER DAUGHTER IF YOU HADN'T NOTICED AT THE OUTSET THAT THIS IS A JOHN WATERS FILM THE IDEA WOULD SOON OCCUR TO YOU THE FILM NOT ONLY TAKES PLACE IN THE SUBURBS OF BALTIMORE WHERE ALL WATERS FILMS ARE SHOT ITS CAST INCLUDES AN ACTRESS CALLED MINK STOLE AS WELL AS SUZANNE SOMERS WHO IS VERY CONVINCING IN A PARODY OF HERSELF LIKE THE BEST OF MR WATERS'S MOVIES THIS ONE IS VERY SILLY AND VERY SMART IN THIS ONE THIS GUILELESS MASTER OF SLEAZE AND DARKNESS CREATES AN OMINOUSLY BLISSFUL SUBURBAN WORLD OUT OF THE TV SITCOMS OF THE 1950S AND '60S MOM IS BEVERLY SUTPHIN A DENTIST'S WIFE WHO KEEPS AN IMMACULATE HOME AND HAS CHILDREN NAMED CHIP AND MISTY SHE FEEDS HER FAMILY MEATLOAF AND SAGE ADVICE DON'T CHEW GUM DON'T CURSE HER CHEERY PERFECTION IS CRAZY ENOUGH BUT MR WATERS MAKES IT CLEAR FROM THE OUTSET THAT SHE HAS REALLY SNAPPED WHEN A FLY BUZZES AROUND HER KITCHEN MRS SUTPHIN'S EYES NARROW HER NOSTRILS FLAIR AND SHE WON'T REST UNTIL SHE SPLATTERS THE FLY THOUGH MR WATERS HAS HIS CAMERA LINGER LOVINGLY ON THE FLY'S REMAINS THIS IS PROBABLY THE LEAST GROTESQUE OF ALL WATERS FILMS HE WAS BRIEFLY FAMOUS FOR HANDING OUT SCRATCHANDSNIFF CARDS TO AUDIENCES SO THEY COULD EXPERIENCE THE VARIOUS SMELLS DESCRIBED IN THE MOVIE POLYESTER STILL THERE IS ENOUGH SLIME AND VULGARITY TO SATISFY WATERS PURISTS CLEVERLY MIXING NOSTALGIA WITH SOCIAL SATIRE MR WATERS TELLS THE STORY LIKE AN ABSURDIST DRAGNET MRS SUTPHIN'S OBSESSION WITH SERIAL KILLERS ISN'T SUBTLE SHE HAS A SIGNED PINUP PHOTO OF RICHARD SPECK AND A PERSONAL FAREWELL ON TAPE FROM TED BUNDY ON THE OTHER HAND HOW WEIRD DOES THAT SEEM WHEN SHE WATCHES TELEVISION WITH A NEIGHBOR AND THERE'S JOAN RIVERS CHATTING WITH SERIAL HAGS WOMEN WHO LOVE MASS MURDERERS IT MIGHT ALL BE JUST TOO CUTE IF IT WEREN'T FOR KATHLEEN TURNER SHE IS PERFECT AS THE WOMAN MR WATERS DESCRIBES AS THE BRECK GIRL GONE CRAZY SHE HAS THE BLOND SLEEKNESS AND FORMAL SPEECH PATTERN OF A SEXY DEBUTANTE AND THE NAUGHTY GLEAM OF A BAD GIRL WHO KNOWS SHE WON'T GET CAUGHT BECAUSE SHE SEEMS SO NICE SHE MAKES BEVERLY SUTPHIN PERFECTLY PLAUSIBLE IN THE WATERS WORLD AS A WOMAN WHO CAN PRIMLY SCOLD HER CHILDREN FOR CRACKING GUM THEN BLITHELY MURDER SOMEONE WHO WAS RUDE TO HER SON HER DEFENSE OF HERSELF IN COURT IS PRICELESS MS TURNER SIZZLES BRIEFLY IN ANOTHER NEW COMEDY CALLED NAKED IN NEW YORK AN AMUSING FIRST FILM BY DAN ALGRANT THIS PICTURE ABOUT A STRUGGLING YOUNG PLAYWRIGHT WITH A PRETTY VAGUE GIRLFRIEND SEEMS MUCH INSPIRED BY ANNIE HALL WOODY ALLEN'S SUPREMELY CHARMING AND WISTFUL PICTURE ABOUT LOVE AND CELEBRITY IN NEW YORK MR ALGRANT WHO COWROTE THE SCRIPT WITH JOHN WARREN DOES WELL WITH CHARM AND WISTFULNESS AND MUCH LESS WELL THAN MR ALLEN WITH ONELINERS THE YOUNG COUPLE NICELY PLAYED BY ERIC STOLTZ AND MARYLOUISE PARKER MOAN A LOT ABOUT THE PROBLEMS OF TWOCAREER COUPLES WHO ARE PULLED TO DIFFERENT CITIES WITHOUT A LOT OF GOOD JOKES THIS CAREERIST ROMANTICISM BECOMES A LITTLE TIRING STILL THERE ARE MANY NICE BITS INCLUDING MS TURNER'S APPEARANCE AS THE SHREWD SOAPOPERA STAR CAST IN THE BUDDING PLAYWRIGHT'S OFFBROADWAY DEBUT SHE ASSUMES THAT HER DEAL MEANS SHE GETS THE PLAYWRIGHT TOO KATHLEEN TURNER ISN'T IN BACKBEAT A STRANGE BIOPIC ABOUT THE BOY WHO DROPPED OUT OF THE BEATLES BEFORE THEY BECAME FAMOUS AND HIS GERMAN GIRLFRIEND HER NAME WAS ASTRID KIRCHHERR A PHOTOGRAPHER WHO TOOK MANY PICTURES OF THE BEATLES DURING THEIR EARLY APPEARANCES IN HAMBURG GERMANY SHE IS CREDITED IN THE MOVIE WITH INSPIRING THE ORIGINAL BEATLE HAIRCUT THE STORY OF STUART SUTCLIFFE THE BEATLE WHO WASN'T IS SURELY SAD HE WAS JOHN LENNON'S BEST FRIEND A GOODLOOKING BOY WHO PAINTED MUCH BETTER THAN HE PLAYED THE BASS GUITAR WITH THE BEATLES HE DROPPED OUT OF THE BAND AFTER A YEAR OR SO TO BE WITH ASTRID AND DIED A YEAR LATER LEAVING BEHIND A PROMISING BATCH OF PAINTINGS AND A FOOTNOTE TO THE BEATLES LEGEND PERHAPS THE SUTCLIFFE STORY COULD BE A COMPELLING ONE IN BACKBEAT HOWEVER IT BECOMES A DISTRACTION FROM THE FUN OF WATCHING VERY GOOD BEATLE LOOKALIKES RECREATE THE GROUP'S EARLY PERFORMANCES IN NIGHTCLUBS IN HAMBURG AND LIVERPOOL IN THE VERY EARLY '60S IAN HART AS JOHN LENNON IS PARTICULARLY COMPELLING IN HIS PORTRAIT OF AN ANGRY YOUNG MAN DETERMINED TO BECOME FAMOUS MUCH OF THE FILM HOWEVER CONCENTRATES ON STUART'S FORAY INTO ASTRID'S WORLD WHERE MOODY ARTISTIC GERMAN YOUTH WERE BEGINNING TO EXPERIMENT WITH DRUGS CROSSDRESSING AND DREAMY EXISTENTIALISM THE OBLIQUE ASTRID APPARENTLY BROUGHT MUCH HAPPINESS TO STUART BUT FOR THE REST OF US SHE BECOMES THE THING THAT IS KEEPING US AWAY FROM THE BEATLES VIDEO TIP KATHLEEN TURNER HAS BEEN NAUGHTY CRIMES OF PASSION AND NICE PEGGY SUE GOT MARRIED BUT SHE'S NEVER BEEN AS THOROUGHLY NASTY AS SHE WAS IN THE WAR OF THE ROSES DANNY DEVITO'S VICIOUSLY FUNNY MOVIE ABOUT A VENOMOUS DIVORCE 9404210004 940421 AGNEW CARD BIDS TO FINESSE WHITEWATER WOES BY ROBERT L BARTLEY DES MOINES NATTERING NABOBS OF NEGATIVISM SPIRO AGNEW CALLED THEM OR COME TO THINK OF IT US THE NOWDEFROCKED VICE PRESIDENT PIONEERED WHAT IS BY NOW A STANDARD POLITICAL CARD IN A CORNER BLAME YOUR TROUBLES ON THE PRESS THE ALLITERATION LEAPS TO MIND BECAUSE THE CLINTON ADMINISTRATION IS PLAYING THE AGNEW CARD TO FINESSE ITS WHITEWATER WOES THE PRESIDENT LECTURES THE AMERICAN SOCIETY OF NEWSPAPER EDITORS THAT THE PRESS IS DETRACTING FROM MORE IMPORTANT ISSUES WITH PREOCCUPATION OVER TWISTS AND TURNS OF HIS FINANCES HE THEN PROCEEDS TO DROP A FEW BOMBS IN BOSNIA HOLD LOTS OF PUBLIC MEETINGS TO DENY THAT HIS HEALTH PLAN IS PRICE CONTROL MOTOR IN HIS OLD MUSTANG AND SPEND 90 MINUTES FIELDING TEENAGE QUESTIONS AT AN MTV YOUTH FORUM MEANWHILE HIS SUBORDINATES COMPLAIN ABOUT THE FRENZY OF PRESS COVERAGE OF WHITEWATER AND HERE IN AN UNSEASONABLY SUMMERY IOWA CLINTON HOUSE PHILOSOPHER JAMES CARVILLE BRAGGED TUESDAY THAT HE'S NOT RUNNING AWAY FROM THE WHITEWATER STORY BUT TRAVELED 1500 MILES TO CONFRONT IT WITH RUSH LIMBAUGH AND SOME BIGFOOT EDITORS ON TED KOPPEL'S ABC NIGHTLINE HE THEN OF COURSE PROCEEDED TO RUN AWAY FROM IT WITH NEARLY EVERY WORD ALONG THE WAY SPEWING A LOT OF DISINFORMATION FOR EXAMPLE RETREATING TO THE INOPERATIVE STORY THAT MRS CLINTON HAD ONLY ONE COMMODITY TRADE AFTER CHELSEA'S BIRTH THE LATEST RECORDS DISGORGED BY THE WHITE HOUSE LIST NINE IF THERE'S RECENTLY BEEN A FRENZY IN THE PRESS MUCH OF IT WAS CAUSED BY JAMES CARVILLE SIMPLY BECAUSE HE'S SO GOOD AT WHAT HE'S PAID TO DO IT'S TRUE OF COURSE THAT IN THE LAST PRESIDENTIAL CAMPAIGN HE PLAYED AGAINST THE SECOND TEAM THE BUSH PRESIDENCY BEING UNABLE TO SUSTAIN THE ENTHUSIASM OF THE LIKES OF ROGER AILES AND PEGGY NOONAN AND THAT IN NEW JERSEY'S GUBERNATORIAL RACE HE BLEW A BIG LEAD EVEN TO ED ROLLINS STILL THE RAGIN' CAJUN SPUN THE 1992 CAMPAIGN MASTERFULLY NOT LEAST IN SUPPRESSING SCRUTINY OF HIS CANDIDATE AND HIS BACKGROUND AS A RESULT MR CLINTON REPEATEDLY GOT FREE RIDES THERE WAS NO BIG FUSS FOR EXAMPLE ABOUT HIS CLAIMING PRIVACY IN REFUSING TO RELEASE HIS 1978 AND 1979 TAX RETURNS EVEN THOUGH HE WAS ELECTED GOVERNOR IN 1978 THERE WAS NO FRENZY OVER GENNIFER FLOWERS THE PRESS DECIDING THAT IF SHE TOOK MONEY FROM THE SLEAZY STAR SHE MUST BE LYING AND WHEN JEFF GERTH OF THE NEW YORK TIMES RAISED WHITEWATER DEVELOPMENT CORP THE STORY DIED WITH THE LYONS REPORT SUPPOSEDLY A COMPLETE ACCOUNTING NOTHING QUITE MAKES A FRENZY WE'VE LEARNED SINCE MIDDECEMBER LIKE A WHOLE FLOCK OF CHICKENS COMING HOME TO ROOST THE LYONS REPORT UNDER SCRUTINY BY OUR BRUCE INGERSOLL AND OTHERS TURNED OUT TO BE A STUDY IN FRAGMENTARY DISCLOSURE AND IT TURNED OUT THE 197879 TAX RETURNS WERE WITHHELD FOR GOOD REASON WHICH IS TO SAY BAD REASON THE PRIVACY PROTECTED MRS CLINTON'S FLAMING CATTLE TRADES WHICH MAY NOT BE CRIMINAL BUT CERTAINLY WOULD HAVE MADE HASH OF CAMPAIGN RHETORIC ABOUT 1980S GREED AND MIGHT VERY WELL HAVE LOST MR CLINTON THE ELECTION WITH CURIOSITY REAWAKENED WE'VE ALSO LEARNED THAT WHITEWATER PAPERS WERE TAKEN FROM VINCENT FOSTER'S OFFICE AFTER HIS SUICIDE THAT MADISON GUARANTY SAVINGS & LOAN OWNED BY THE CLINTONS' WHITEWATER PARTNER JAMES MCDOUGAL WAS REFERRED FOR POSSIBLE CRIMINAL PROSECUTION THAT WHEN THE JUSTICE DEPARTMENT FIRED ALL US ATTORNEYS A CLINTON CRONY WAS PUT IN CHARGE IN LITTLE ROCK ONLY BELATEDLY RECUSING HERSELF FROM WHITEWATER WE SAW WEBSTER HUBBELL RESIGN FROM JUSTICE AND WILLIAM KENNEDY DEMOTED AT THE COUNSEL'S OFFICE WHITE HOUSE OFFICIALS ADMITTED THEY TALKED TO REGULATORS ABOUT THE WHITEWATER INVESTIGATION THE ONLY TROUBLE HERE THE CLINTONITES HAVE IT IS HEAVY BREATHING BY THE PRESS THE MAINSTREAM AMERICAN PRESS REMAINS UNCOMMONLY GENTLEMANLY INDEED ABOUT ONE STRAIN OF THE STORY NAMELY SEX IT WAS LEERY OF THE FOUR ARKANSAS STATE TROOPERS EVEN THOUGH THEIR STORIES AND MISS FLOWERS'S CORROBORATED ONE ANOTHER THERE HAS BEEN NO FRENZY ABOUT SALLY PERDUE WHO SAYS SHE WAS THREATENED INTO SILENCE ABOUT HER AFFAIR WITH GOV CLINTON PAULA JONES WHO SAYS HE SUBJECTED HER TO A GROSS SEXUAL ADVANCE AND OFFERS AFFIDAVITS FROM TWO OTHER WOMEN SHE CONFIDED IN AT THE TIME IS SO INVISIBLE THAT CONSERVATIVE MEDIA POLICEGROUP ACCURACY IN MEDIA HAS BEEN TAKING OUT ADS ASKING WHATEVER HAPPENED TO HER THERE IS A RESPECTABLE ARGUMENT THAT SUCH ANECDOTES ARE NOT FRONTPAGE NEWS OF COURSE BUT IT'S HARD TO SAY THEY ARE BEING JUDGED BY THE STANDARDS APPLIED TO THE REPORTING ABOUT ANITA HILL OR SEN BOB PACKWOOD THE AGNEW CARD MAY BE TRUMP BUT THE CLINTON CAMP HAS ALREADY DRAWN THE SUIT TWICE IN THE CAMPAIGN MR CARVILLE FRIGHTENED BOTH THE PRESS AND HIS OPPOSITION BY WAVING THE WILLIE HORTON SYMBOL IT'S A DIRTY TRICK THE NOTION WENT TO PUBLICIZE A CANDIDATE'S FAULTS OR EVEN HIS RECORD THE SECOND PRESS ASSAULT ALSO SUCCEEDED SILENCING QUESTIONS ABOUT VINCENT FOSTER'S DEATH THE THIRD HAS PRODUCED A LULL IN WHITEWATER COVERAGE IF YOU CAN'T DRAW THE FINAL TRUMP THOUGH YOU CAN FIND YOURSELF DOUBLED AND VULNERABLE IN DES MOINES TIMES EXECUTIVE EDITOR MAX FRANKEL DESCRIBED WHITEWATER AS UNFINISHED BUSINESS FROM THE 1992 CAMPAIGN WE AWAIT MR GERTH'S NEXT STORY FOR MY PART I CAN TESTIFY THAT GETTING TAGGED WITH BLAME FOR THE FOSTER SUICIDE POWERFULLY FOCUSED MY OWN ATTENTION ON WHITEWATER THIS THIRD TIME AROUND I DOUBT THAT THE PRESS WILL BE COWED FOR LONG RECENT HISTORY SUGGESTS INDEED THAT PRESSBASHING IS A SIGN OF DESPERATION IN THE END AFTER ALL SPIRO AGNEW WENT OUT WITH A PLEA OF NOLO CONTENDERE MR BARTLEY IS EDITOR OF THE JOURNAL 9404210002 940421 LETTERS TO THE EDITOR FORMULA FOR CREATING ECONOMIC DEPRESSION ROBERT GENETSKI HAS LEARNED THE WRONG LESSON FROM HISTORY IN HIS MARCH 23 ARTICLE OFF THE MONEY PRESIDENTS AND INTEREST RATES HE WORRIES THAT THE CLINTON ADMINISTRATION IS REPEATING JIMMY CARTER'S AND LYNDON JOHNSON'S PURPORTED ERROR OF HAVING ASSUMED THAT CURRENT INFLATION WAS A GUIDE TO FUTURE INFLATION ACCORDING TO MR GENETSKI THEIR SHORTSIGHTEDNESS LED TO INFLATION THIS IS A MISREADING OF HISTORY THE INFLATION THAT AFFLICTED THE LAST YEARS OF BOTH THE JOHNSON AND CARTER PRESIDENCIES WAS NOT DRIVEN BY DOMESTIC ECONOMIC RECOVERIES THAT OVERHEATED IN THE FIRST CASE THE CAUSE WAS THE ESCALATION OF THE VIETNAM WAR IN THE SECOND IT WAS THE SUDDEN JUMP IN WORLD OIL AND FOOD PRICES IN FACT THE REPORTS OF THE COUNCILS OF ECONOMIC ADVISERS THAT MR GENETSKI CITES REFLECTED ACCURATELY THE INFLATIONARY POTENTIAL OF THE DOMESTIC ECONOMIES AT THAT TIME BOTH MAY HAVE INVOLVED POLICY MISTAKES BUT EXPANSIONARY MONETARY POLICY PRIOR TO THE PRICE SHOCKS WAS NOT ONE OF THEM BY MR GENETSKI'S LOGIC WE MUST CONSTANTLY PURSUE DEFLATIONARY MONETARY POLICY IN ANTICIPATION OF SOME POSSIBLE SURPRISE THIS IS A FORMULA FOR CREATING ECONOMIC DEPRESSION THE ONLY BASIS WE EVER HAVE FOR MAKING SUCH POLICY DECISIONS IS WHAT WE KNOW TODAY WE KNOW THAT THERE IS PLENTY OF IDLE CAPACITY TO ACCOMMODATE THE CURRENT RATE OF ECONOMIC GROWTH THERE IS THEREFORE NO JUSTIFICATION FOR TIGHTENING THE MONETARY NOOSE UNFORTUNATELY MR GENETSKI IS ALSO WRONG IN CLAIMING THAT THE ADMINISTRATION IS IN OPPOSITION TO THE FED'S RECENT MOVES THE WHITE HOUSE HAS BEEN MORE THAN WILLING TO INDULGE ALAN GREENSPAN'S INFLATION FANTASIES THAT IF ANYTHING IS THE POLICY MISTAKE IN THE MAKING 9404210001 940421 TECHNOLOGY AND HEALTH DINGELL SOFTENS CERTAIN PROPOSALS IN HEALTH CARE PLAN BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CHAIRMAN JOHN DINGELL OF THE HOUSE ENERGY AND COMMERCE COMMITTEE IS SOFTENING PROPOSALS AFFECTING SMALL BUSINESSES AND DRUG COMPANIES IN AN EFFORT TO WIN VOTES FOR HEALTHCARE REFORM LEGISLATION MR DINGELL'S COMPROMISE HEALTH BILL WHICH COMMITTEE MEMBERS COULD BEGIN VOTING ON BY NEXT WEEK WOULD EXEMPT EMPLOYERS WITH FEWER THAN 10 EMPLOYEES FROM HAVING TO PAY ANY PART OF THEIR WORKERS' HEALTHINSURANCE PREMIUMS ACCORDING TO PEOPLE FAMILIAR WITH THE PROPOSAL FIRMS WITH BETWEEN 10 AND 15 WORKERS WOULD BE ASSESSED A 1 PAYROLL TAX TO FINANCE THEIR WORKERS' HEALTH COVERAGE AND COMPANIES WITH BETWEEN 16 AND 20 WORKERS WOULD PAY A 2 TAX THE PLAN WOULD STILL GUARANTEE HEALTH COVERAGE FOR ALL AMERICANS BY PLACING SMALLBUSINESS EMPLOYEES UNDER AN INDIVIDUAL MANDATE REQUIRING THEM TO OBTAIN A STANDARD HEALTHBENEFITS PACKAGE GOVERNMENT SUBSIDIES WOULD BE OFFERED TO HELP LOWINCOME EMPLOYEES PAY FOR IT PRESIDENT CLINTON BY CONTRAST WOULD REQUIRE ALL EMPLOYERS TO HELP PAY FOR THE COST OF COVERING THEIR EMPLOYEES ALTHOUGH IT WOULD OFFER SUBSIDIES TO SMALLER FIRMS IN A FURTHER EFFORT TO WIN OVER UNDECIDED DEMOCRATS MR DINGELL INDICATED HE OPPOSED TWO PROVISIONS IN THE CLINTON PLAN THAT AIM TO CONTAIN DRUG PRICES IN A LETTER TO COMMITTEE MEMBER LYNN SCHENK D CALIF MR DINGELL SAID HE WILL OPPOSE ESTABLISHING A PANEL TO PRESS FOR LOWER PRICES ON NEW DRUGS PRESIDENT CLINTON PROPOSED ESTABLISHING THE PANEL THE ADVISORY COUNCIL ON BREAKTHROUGH DRUGS IT WOULD BE ABLE TO DECLARE WHEN IT CONSIDERS THE PRICES OF CERTAIN NEW DRUGS EXCESSIVE BUT IT WOULDN'T BE AUTHORIZED TO REGULATE PRICES I DO NOT DESIRE TO SINGLE OUT NEW OR BREAKTHROUGH' DRUGS FOR DRACONIAN PRICE REGULATION MR DINGELL WROTE IN THE LETTER I AGREE WITH YOU THAT THE ADVISORY COUNCIL IS NOT A GOOD IDEA AND THAT IT SHOULD NOT BE INCLUDED AS PART OF ANY COMPREHENSIVE HEALTHCARE REFORM MR DINGELL ALSO INDICATED IN A LETTER TO COMMITTEE MEMBER MARJORIE MARGOLIESMEZVINSKY D PA THAT HE WILL MODIFY A PROVISION IN THE CLINTON BILL THAT WOULD HAVE ALLOWED THE SECRETARY OF HEALTH AND HUMAN SERVICES TO BLACKLIST A NEW DRUG FROM MEDICARE COVERAGE IF SHE DETERMINES ITS PRICE IS TOO HIGH THE MICHIGAN DEMOCRAT'S OPPOSITION TO THE BREAKTHROUGH DRUG COUNCIL MEANS IT IS ALL BUT CERTAIN TO BE ABSENT FROM THE HEALTHCARE BILL THAT EMERGES FROM THE ENERGY AND COMMERCE COMMITTEE MARY AGNES CAREY CONTRIBUTED TO THIS ARTICLE 9404210003 940323 OFF THE MONEY PRESIDENTS AND INTEREST RATES BY ROBERT GENETSKI THE FEDERAL RESERVE MOVED YESTERDAY TO RAISE SHORTTERM INTEREST RATES FOR THE SECOND TIME IN AS MANY MONTHS THIS INCREASE COMES IN THE FACE OF OPPOSITION FROM THE CLINTON ADMINISTRATION WHICH ARGUES THAT THERE IS NO INFLATION AND THAT INTEREST RATES SHOULD REMAIN LOW THE RATIONALE FOR MAINTAINING LOW RATES WAS LAID OUT IN THE RECENTLY RELEASED ECONOMIC REPORT TO THE PRESIDENT PUT TOGETHER BY THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS UNFORTUNATELY THE ECONOMIC FRAMEWORK PRESENTED BY THE PRESIDENT'S AIDES BEARS A STRIKING SIMILARITY TO THAT PRESENTED BY PREVIOUS DEMOCRATIC ECONOMIC ADVISERS MISTAKE NO 1 USING CURRENT INFLATION AS A GUIDE TO FUTURE INFLATION MR CLINTON'S ADVISERS 1994 1993 SAW THE BEST INFLATION PERFORMANCE IN A GENERATION AND THERE APPEAR TO BE FEW INFLATIONARY SEEDS FROM 1993 BLOWING INTO 1994 JIMMY CARTER'S ADVISERS 1978 THE STABILITY OF THE UNDERLYING INFLATION RATE REFLECTS ON THE ONE HAND THE CONTINUED HIGH LEVELS OF UNEMPLOYMENT AND EXCESS CAPACITY WHICH HAVE FORESTALLED THE ACCELERATION OF INFLATION THAT HAS OFTEN OCCURRED IN THE COURSE OF EXTENDED CYCLICAL EXPANSION ON THE OTHER HAND INFLATIONARY EXPECTATIONS AND INSTITUTIONAL CHARACTERISTICS OF MODERN ECONOMICS HAVE KEPT THE INFLATION PACE FROM DECLINING SOON AFTER THIS REPORT APPEARED INFLATION HEADED FOR DOUBLE DIGITS LYNDON JOHNSON'S ADVISERS 1965 THE STEADY GAINS IN PRODUCTIVITY AND THE MODERATE WAGE INCREASES HAVE HELD UNIT LABOR COSTS PRACTICALLY UNCHANGED IN THE ECONOMY DURING THE PAST FOUR YEARS AND HAVE RESULTED IN A SLIGHT NET REDUCTION IN MANUFACTURING LABOR COSTS SIMILARLY THE IMPLICIT PRICE DEFLATORS HAVE RISEN VERY LITTLE SIX MONTHS BEFORE INFLATION TOOK OFF THE PRESIDENT'S ADVISERS WERE IMPLYING THAT LOW CURRENT INFLATION MEANT THERE WAS NO CAUSE FOR CONCERN MISTAKE NO 2 ASSUMING THE ECONOMY HAS PLENTY OF EXCESS CAPACITY SO INFLATION SHOULD NOT BE A PROBLEM MR CLINTON'S ADVISERS 1994 THE EVIDENCE ALSO SUGGESTS THAT TODAY'S UNEMPLOYMENT RATE EXCEEDS THE NATURAL RATE BY A SIGNIFICANT AMOUNT THEREFORE WAGEPUSH PRICE INFLATION IS UNLIKELY TO BE A FACTOR CONSTRAINING ECONOMIC GROWTH IN THE NEAR FUTURE MR CARTER'S ADVISERS 1978 THE PROSPECTS FOR RELATIVELY STABLE LONGTERM RATES ARE GREATLY ENHANCED BY THE FACT THAT SUPPLIES OF BOTH LABOR AND CAPITAL ARE SUFFICIENTLY AMPLE TO PERMIT RISING AGGREGATE DEMAND TO BE TRANSLATED INTO REAL GROWTH IN OUTPUT RATHER THAN A HIGHER RATE OF INFLATION MR JOHNSON'S ADVISERS 1965 THE ECONOMY TODAY HAS ROOM FOR AND NEED FOR MORE EMPLOYMENT AND MORE PRODUCTION MISTAKE NO 3 BELIEVING THAT MONETARY STIMULUS CAN BE OFFSET BY FISCAL RESTRAINT MR CLINTON'S ADVISERS 1994 WITH CREDIBLE DEFICIT REDUCTION THE FEDERAL RESERVE WILL BE ABLE TO ACHIEVE A GIVEN LEVEL OF NOMINAL DEMAND WITH A LESS RESTRICTIVE MONETARY POLICY MR CARTER'S ADVISERS 1978 UNDER CURRENT ECONOMIC CONDITIONS MONETARY AND FISCAL POLICY CAN REINFORCE EACH OTHER IN FOSTERING STABLE ECONOMIC GROWTH AND THE INCREASED RATE OF INVESTMENT NEEDED TO AVOID THE EMERGENCE OF CAPACITY LIMITATIONS IN THE FUTURE MR JOHNSON'S ADVISERS 1965 THE DEGREE TO WHICH FISCAL POLICY SHOULD BE STIMULATIVE OR RESTRICTIVE DEPENDS IN PART UPON THE MONETARY POLICIES BEING PURSUED MISTAKE NO 4 ASSUMING THAT IF NECESSARY MONETARY POLICY CAN QUICKLY SOLVE ANY INFLATIONARY PROBLEM MR CLINTON'S ADVISERS 1994 THE FEDERAL RESERVE'S SHIFT TOWARD RELIANCE ON A BROADER SET OF GUIDELINES FOR SETTING MONETARY POLICY INCLUDING SHORTTERM INTEREST RATES APPEARS TO BE AN APPROPRIATE ADAPTATION TO CHANGING EVENTS IT SHOULD ALLOW THE OVERALL CONDITION OF THE ECONOMY TO BE CAREFULLY MONITORED AND AN APPROPRIATE POLICY RESPONSE TO BE CRAFTED MR CARTER'S ADVISERS 1978 INTEREST RATES MOVED UP EARLY IN 1978 A LEVEL OF SHORTTERM INTEREST RATES MODERATELY HIGHER THAN IN 1977 WOULD BE CONSISTENT WITH A NORMAL CYCLICAL EXPANSION OF DEMANDS FOR MONEY AND CREDIT RELATIVE TO SUPPLIES IF THE RISE IN SHORTTERM RATES IS LIMITED LONGTERM INTEREST RATES MAY CHANGE VERY LITTLE MR JOHNSON'S ADVISERS 1967 AS A STABILIZATION TOOL MONETARY POLICY HAS SOME DISTINCT ADVANTAGES POLICY CHANGES CAN BE MADE QUICKLY IN RESPONSE TO CHANGING SIGNALS FURTHERMORE AS WAS EVIDENT IN 1966 A RESTRICTIVE MONETARY POLICY CAN REDUCE AGGREGATE DEMAND FAIRLY PROMPTLY AND SHARPLY THE PROBLEM WITH BAD ECONOMIC ANALYSIS IS THAT IT OFTEN PRODUCES BAD POLICY THIS IS WHAT HAPPENED IN THE '60S AND '70S REFLECTIONS ON PREVIOUS MISTAKES FROM THE ECONOMIC REPORTS TO THE PRESIDENT IN THE LATTER YEARS OF THE JOHNSON AND CARTER ADMINISTRATIONS ARE PAINFUL TO READ MR JOHNSON'S ADVISERS 1968 THE PERIOD 196567 WAS MARKED BY A STEEP UPWARD MOVEMENT IN BOTH SHORT AND LONGTERM INTEREST RATES INDEED LONGTERM RATES REACHED THE HIGHEST LEVEL IN OVER 40 YEARS DURING 1966 AND AFTER RECEDING FOR A RELATIVELY BRIEF PERIOD ADVANCED SUBSTANTIALLY FURTHER DURING THE COURSE OF 1967 IN SOME CASES TO THE HIGHEST LEVELS SINCE THE 1860S OR 1870S MR CARTER'S ADVISERS 1981 THE NATION HAS FOR SOME TIME NOW EXPERIENCED INFLATION THAT WOULD HAVE BEEN UNIMAGINABLE IN EARLIER DAYS BY FOLLOWING A FAULTY ECONOMIC FRAMEWORK TWO PREVIOUS DEMOCRATIC ADMINISTRATIONS PRODUCED POLICIES THAT DAMAGED THE ECONOMY THE CURRENT ADMINISTRATION HAS SUBSCRIBED TO THE SAME POLICY FRAMEWORK IT WILL BE EXTREMELY UNFORTUNATE IF THE LESSONS OF THE 1960S AND 1970S HAVE TO BE RELEARNED IN THE 1990S MR GENETSKI HEADS ROBERT GENETSKI & ASSOCIATES INC CHICAGOBASED ECONOMIC AND FINANCIAL ADVISERS SEE RELATED LETTER LETTERS TO THE EDITOR FORMULA FOR CREATING ECONOMIC DEPRESSION WSJ APRIL 21 1994 9403230067 YY94 MM04 9404200187 940420 TEXAS JOURNAL WEST TEXAS FACING ITS WORST DROUGHT IN 40 YEARS BRACES FOR COTTON DISASTER BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL IN THE DUSTY COTTON FIELDS OF THE HIGH PLAINS WEST TEXAS FARMERS ARE BRACING FOR DISASTER WHAT IS BELIEVED TO BE THE WORST DROUGHT IN 40 YEARS HAS HIT LUBBOCK AND SURROUNDING AREAS THREATENING TO HALT THE PLANTING OF THREE MILLION ACRES OF HIGH PLAINS COTTON THE LARGEST COTTON SUPPLY IN THE NATION THE DRY SPELL WHICH HAS ALREADY DEVASTATED THE STATE'S WINTER WHEAT AND HAY CROPS HAS WEST TEXAS BUSINESSES CUTTING BACK LAYING OFF AND BRACING FOR THE IMPACT OF LOSING AT LEAST PART OF A 124 BILLION INDUSTRY ON MONDAY FEDERAL AGRICULTURE OFFICIALS MET TO DISCUSS THE POSSIBILITY OF EMERGENCY LOANS AND DISASTER RELIEF FOR TEXAS FARMERS THE QUESTION IS NO LONGER WHETHER THE DROUGHT WILL HIT THE COTTON CROP BUT INSTEAD HOW MUCH WILL BE LOST IT'S EXTREMELY SERIOUS SAYS JOHN JOHNSON SPOKESMAN FOR THE PLAINS COTTON COOPERATIVE ASSOCIATION IN LUBBOCK WHEN YOU CONSIDER THE STATE OF TEXAS PRODUCES ABOUT ONETHIRD OF THE US COTTON CROP AND 60 OF THE TEXAS CROP IS GROWN IN THE HIGH PLAINS YOU'RE TALKING ABOUT LOSING SEVERAL MILLION BALES POTENTIALLY RAINFALL IN THE LUBBOCK AREA FOR 1994 IS RUNNING ABOUT TWO INCHES BEHIND THE AVERAGE AND LAST YEAR TOTALED ONLY 1275 INCHES SOME SEVEN INCHES BELOW AVERAGE THE LAST TIME IT WAS THIS DRY WAS IN 1970 WHEN 1263 INCHES OF RAIN FELL BUT THAT DRY SPELL LASTED ONLY ONE YEAR MOST FARMERS COMPARE THE CURRENT DRY STRETCH TO A DROUGHT THAT BEGAN WITH 1209 INCHES OF RAIN IN 1952 AND DIDN'T BREAK UNTIL 1957 ONLY 16 OF THE STATE'S COTTON CROP HAS BEEN PLANTED SO FAR BUT MANY FARMERS FEAR THEY WON'T BE ABLE TO PLANT AT ALL THE WEST TEXAS SOIL IS SO DRY AND HARD IT HAS CAUSED SOME FARMERS TO BREAK THEIR PLOWS OTHERS SAY THE DUST AND WIND FILL UP THE PLOWED ROWS AS SOON AS FARMERS CAN CUT THEM BUT CAUSING THE MOST CONCERN IS THAT ABOUT 60 OF THE COTTON ACREAGE IN THE HIGH PLAINS ISN'T IRRIGATED AND THE REST IS ONLY PARTIALLY IRRIGATED COTTON IS A DEEPROOT PLANT THAT REQUIRES SEVERAL INCHES OF SOIL MOISTURE TO SURVIVE IN THE ARID WEST TEXAS CLIMATE STATE AGRICULTURE AND WATER OFFICIALS SAY THE HIGH PLAINS SOIL NOW HAS A WATER DEFICIT OF SIX TO EIGHT INCHES BUT WITH THE SOIL SO DRY A HEAVY RAINFALL MAY SIMPLY WASH AWAY THE TOPSOIL WATER STORED IN THE SOIL IS LIKE HAVING MONEY IN THE BANK SAYS WAYNE WYATT GENERAL MANAGER OF THE HIGH PLAINS UNDERGROUND WATER CONSERVATION DISTRICT NO 1 BUT WE'RE BROKE SO TO SPEAK THAT'S BAD NEWS FOR THE WEST TEXAS ECONOMY WHICH GETS THE BIGGEST SHARE OF THE ESTIMATED 4 BILLION DIRECT AND INDIRECT IMPACT OF THE COTTON INDUSTRY AT ALLTEX SEED CO IN LEVELLAND WHICH DERIVES ALL OF ITS INCOME FROM THE COTTON INDUSTRY OFFICIALS HAVE LAID OFF 10 WORKERS TRIMMED EXPENSES AND POSTPONED AN UPGRADE OF THEIR COMPUTER SYSTEM ALTHOUGH SEED SALES ARE ABOUT AVERAGE THE COMPANY EXPECTS HEAVY RETURNS FROM FARMERS IF IT DOESN'T RAIN IN THE NEXT 30 DAYS WE'RE NOT DOING ANY SPENDING UNLESS IT'S ABSOLUTELY NECESSARY SAYS MIKE NELSON A COTTON BREEDER FOR ALLTEX NONAGRICULTURAL BUSINESSES SAY THEIR INDIRECT PROFITS FROM LAST YEAR'S SUCCESSFUL CROP HAVE CUSHIONED THEM SO FAR FROM THE DROUGHT'S IMPACT BUT THAT WON'T BE TRUE MUCH LONGER IF IT DOESN'T RAIN PRETTY SOON IT'S GOING TO CERTAINLY AFFECT US SAYS GREG WESSELS GENERAL MANAGER FOR THE GENE MESSER FORD DEALERSHIP IN LUBBOCK WE'RE VERY CONCERNED ABOUT IT BUT NO ONE WILL SUFFER MORE THAN THE FARMERS WE HAVE ZERO PROSPECTS OF PLANTING OUR NONIRRIGATED LAND SAYS JACKIE BURRIS WHO FARMS ABOUT 2000 DRY COTTON ACRES AND ANOTHER 1000 IRRIGATED ACRES MR BURRIS SAYS THE LAND IS SO DRY EVEN HIS IRRIGATED ACRES NEED MORE WATER THAN HE CAN GIVE THEM WHILE HE WAITS FOR RAIN MR BURRIS HAS DECIDED TO SAVE MONEY BY NOT PUTTING DOWN FERTILIZER MEANWHILE MR BURRIS'S FAMILY HAS ALSO CUT BACK DELAYING PURCHASES LIKE A NEW TRAMPOLINE FOR THEIR SONS THAT'S SOMETHING WE CAN LIVE WITHOUT MELANIE BURRIS SAYS DON LANGSTON WHO FARMS 1400 ACRES ABOUT 10 MILES SOUTH OF LUBBOCK SAYS HE TOO HAS PUT OFF REPLACING 25YEAROLD FURNITURE AS WELL AS A NEW CULTIVATOR IF IT DOESN'T RAIN BY JUNE 5 MR LANGSTON WILL PLANT HOPE FOR THE BEST AND SETTLE FOR A CROPINSURANCE PAYMENT THAT WAY WE'LL GET SOME OF OUR EXPENSE MONEY BACK BUT WE SURE WON'T MAKE ANY MONEY MR LANGSTON SAYS MR LANGSTON LIKE MANY HIGH PLAINS FARMERS ALSO COUNTS ON A WINTER WHEAT CROP BUT THE DROUGHT IS EXPECTED TO REDUCE THE TEXAS WHEAT CROP BY NEARLY 40 THIS YEAR TEXAS IS THE COUNTRY'S THIRD OR FOURTHLARGEST WHEAT PRODUCER EACH YEAR MR LANGSTON PLANTED 500 ACRES OF WHEAT THIS YEAR BUT ONLY 100 CAME UP IT'S JUST BEEN A DISASTER HE SAYS THE WHEAT ALONG WITH A HAY SHORTAGE CAUSED BY THE DRY WEATHER IS ALSO EXPECTED TO AFFECT THE CATTLE INDUSTRY THE STATE'S LARGEST AGRICULTURAL INDUSTRY THOUGH ECONOMISTS SAY IT'S TOO EARLY TO GAUGE THE IMPACT POOR GRAZING CONDITIONS WILL PROBABLY FORCE MORE ANIMALS TO MARKET SOONER OR FORCE RANCHERS TO SPEND MORE MONEY FATTENING THE ANIMALS IN FEEDLOTS WHEN YOU HAVE A BIG HERD HIT THE MARKET AT THE SAME TIME IT CAN DRIVE DOWN THE PRICE OF BEEF THEN HURT EVERYBODY ELSE SAYS GEORGE ELLIS STATE DIRECTOR FOR THE FARMERS HOME ADMINISTRATION IT'S JUST AN ILLUSTRATION OF THE SNOWBALLING EFFECT A DROUGHT CAN HAVE STATE OFFICIALS SAY THE ONLY GOOD NEWS IS THAT THE DROUGHT IS COMING ON THE HEELS OF A SUCCESSFUL COTTON CROP LAST YEAR THAT HELPED MANY FARMERS CATCH UP ON LOAN PAYMENTS AND PAY OFF DEBT THOUGH FEDERAL OFFICIALS DON'T KNOW WHETHER DISASTER RELIEF WILL BE NEEDED A TOTAL LOSS OF THE HIGH PLAINS CROP COULD COST AS MUCH AS 500 MILLION IN FEDERAL DISASTER RELIEF FUNDS IF THE DROUGHT ISN'T BROKEN YOU'RE GOING TO HAVE TREMENDOUS CROP DISASTER PAYMENTS SAYS MR ELLIS 9404200186 940420 INTERNATIONAL ROCHE'S '93 NET ROSE BY 29 DRUG MAKER TO RAISE DIVIDEND SPECIAL TO THE WALL STREET JOURNAL ZURICH ROCHE HOLDING AG REPORTED A 29 SURGE IN 1993 NET PROFIT CAPPING A SERIES OF RECORD RESULTS AT SWITZERLAND'S LEADING CHEMICAL AND DRUG COMPANIES THE RESULTS OF ROCHE FOLLOW PREVIOUSLY REPORTED NET GAINS OF 17 AT CIBAGEIGY AG AND 14 AT SANDOZ AG ANALYSTS SAY SWITZERLAND'S SOCALLED BIG THREE ARE BENEFITING FROM RESTRUCTURINGS BEGUN EARLIER THAN THOSE OF THEIR LESS BUOYANT GERMAN RIVALS HOECHST AG BASF AG AND BAYER AG THE SWISS COMPANIES ALSO ARE BEING HELPED BY A CONCENTRATION ON VALUEADDED PRODUCTS AND IN THE CASE OF ROCHE AND SANDOZ STRONG DRUG PORTFOLIOS ROCHE PROPOSES A DIVIDEND INCREASE TO 48 SWISS FRANCS 3314 FROM 37 FRANCS FOR EACH SHARE AND NONVOTING CERTIFICATE ROCHE SAID NET PROFIT INCREASED LAST YEAR TO 248 BILLION FRANCS FROM 192 BILLION FRANCS IN 1992 THE COMPANY NOTED THIS VERY GOOD RESULT IN A DIFFICULT ECONOMIC CLIMATE WAS DUE TO HIGHER UTILIZATION OF PRODUCTION CAPACITY AND CONTINUED COST MANAGEMENT ROCHE ADDED THAT ANOTHER GOOD RESULT FROM MANAGEMENT OF THE COMPANY'S NONOPERATING FINANCIAL RESOURCES CONTRIBUTED TO THE PROFIT SURGE ANALYSTS ESTIMATE THAT ROCHE HAS ABOUT 13 BILLION FRANCS IN LIQUIDITY THAT ITS CHIEF FINANCIAL OFFICER HENRI B MEIER HAS MANAGED WITH NOTABLE SUCCESS THE COMPANY'S BOARD WILL PROPOSE TO ROCHE'S ANNUAL STOCKHOLDERS' MEETING ON MAY 31 THAT MR MEIER BE MADE A DIRECTOR ROCHE SAID MEANWHILE ROCHE SAID IT MANAGED TO RAISE PROFIT SUBSTANTIALLY DESPITE AN INCREASE IN CAPITAL SPENDING TO 141 BILLION FRANCS UP FROM 129 BILLION FRANCS THE PREVIOUS YEAR AND RESEARCHANDDEVELOPMENT EXPENDITURES ROSE 8 TO 216 BILLION FRANCS FROM 199 BILLION FRANCS ROCHE SPENT 18 BILLION FRANCS ON RESEARCH IN THE DRUG DIVISION THAT FIGURE REPRESENTS 23 OF THE DIVISION'S SALES WELL ABOVE THE INDUSTRY AVERAGE OF 16 9404200185 940420 WHEELINGPITTSBURGH INLAND STEEL REPORT FIRSTQUARTER PROFITS A WALL STREET JOURNAL NEWS ROUNDUP TWO MAJOR STEEL PRODUCERS REPORTED FIRSTQUARTER PROFITS AS A RESULT OF RISING SALES AND HIGHER PRICES INLAND STEEL INDUSTRIES INC EARNED 92 MILLION OR THREE CENTS A SHARE COMPARED WITH A NET LOSS OF 314 MILLION OR 112 A SHARE A YEAR EARLIER AT THE COMPANY'S MAJOR STEELMAKING UNIT INLAND STEEL CO SHIPMENTS ROSE 37 TO 1253000 TONS WHILE PRICES JUMPED 98 FROM A YEAR AGO THE CHICAGOBASED COMPANY SAID THE IMPROVEMENTS IN ITS STEEL OPERATIONS WERE PARTIALLY OFFSET BY 16 MILLION IN UNEXPECTED OPERATING COSTS ARISING FROM SEVERE WINTER WEATHER AND UNDERPERFORMANCE BY THE COMPANY'S PLATE OPERATIONS SINCE IMPLEMENTING A STIFF COSTREDUCTION PROGRAM INLAND STEEL HAS REDUCED ITS WORK FORCE BY MORE THAN 2600 THE COMPANY SAID IT PLANS A FURTHER CUT OF 900 EMPLOYEES TO ACHIEVE ITS COST TARGETS FOR THE YEAR WHEELINGPITTSBURGH CORP SAID IT EARNED 265 MILLION OR 83 CENTS A SHARE IN THE FIRST QUARTER COMPARED WITH A LOSS OF 28 MILLION OR 15 CENTS A SHARE IN THE 1993 FIRST QUARTER THE LATEST PERIOD INCLUDES A 10 MILLION CHARGE FOR ACCOUNTING CHANGES AND AN AFTERTAX GAIN OF 267 MILLION RESULTING FROM A PREVIOUSLY REPORTED LEGAL SETTLEMENT EXCLUDING THESE ITEMS IT EARNED 98 MILLION OR 25 CENTS A SHARE WHEELINGPITTSBURGH WHICH IS BASED IN WHEELING WVA SAID REVENUE WAS AIDED BY HIGHER PRICES AS WELL AS BY THE COMPANY'S HIGHER VALUEADDED PRODUCT MIX THIS WAS OFFSET SOMEWHAT BY A 36 DROP IN SHIPMENTS WHICH TOTALED 528000 TONS FOR THE QUARTER THE COMPANY BLAMED THE BAD WINTER AND A TWODAY STRIKE FOR THE REDUCED SHIPMENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING INLAND CLOSED AT 33125 DOWN 1125 WHILE WHEELINGPITTSBURGH FINISHED THE DAY AT 16125 DOWN 125 CENTS 9404200184 940420 US INVESTORS IN 1993 BOUGHT RECORD NET OF FOREIGN SECURITIES NEW YORK SEEKING TO CAPITALIZE ON BOOMING OVERSEAS STOCK MARKETS AND TO AVOID LOW INTEREST RATES AT HOME US INVESTORS LAST YEAR PURCHASED A RECORD NET 1286 BILLION OF FOREIGN STOCKS AND BONDS ACCORDING TO THE SECURITIES INDUSTRY ASSOCIATION THE PREVIOUS HIGH WAS 512 BILLION SET IN 1992 DAVID STRONGIN THE SIA'S DIRECTOR OF INTERNATIONAL FINANCE HERE SAID THAT THE CONTINUED DESIRE TO DIVERSIFY THEIR PORTFOLIO HOLDINGS ALSO HELPED TO EXPLAIN US INVESTORS' OVERSEAS BUYING SPREE IN ADDITION HE CITED INVESTORS' INCREASED ABILITY TO HEDGE CURRENCY RISK WITH DERIVATIVE INSTRUMENTS AND A RECORD 10 BILLION OF NEW EQUITY OFFERINGS BY FOREIGN COMPANIES IN THE FORM OF AMERICAN DEPOSITARY RECEIPTS WHICH REPRESENT A SET NUMBER OF UNDERLYING SHARES AMERICANS ADDED 678 BILLION OF FOREIGN STOCKS TO THEIR PORTFOLIOS IN 1993 MORE THAN DOUBLE THE 1992 RECORD HIGH OF 323 BILLION THE MOST POPULAR FOREIGN STOCK MARKETS WERE BRITAIN WHERE US INVESTORS PURCHASED A NET 165 BILLION FOLLOWED BY JAPAN WHICH ACCOUNTED FOR A NET 62 BILLION AND THEN HONG KONG AT 61 BILLION AND CANADA AT 51 BILLION ROUGHLY 20 OF AMERICANS' PURCHASES WERE MADE IN THE EMERGING STOCK MARKETS OF ASIA AND LATIN AMERICA IF HONG KONG OFTEN CONSIDERED A PLAY ON CHINA'S BOOMING ECONOMY IS INCLUDED THAT FIGURE ROSE TO 29 US INVESTORS ALSO BOUGHT A NET 608 BILLION OF FOREIGN BONDS MORE THAN THE TOTAL AMOUNT THEY PURCHASED IN THE ENTIRE DECADE OF THE 1980S BRITISH FIXEDINCOME SECURITIES ACCOUNTED FOR 441 BILLION OF US INVESTORS' PURCHASES AND CANADA ACCOUNTED FOR 95 BILLION AT THE SAME TIME FOREIGN INVESTORS BOUGHT A RECORD NET 215 BILLION OF US STOCKS LAST YEAR THAT'S A PHENOMENAL TURNAROUND CONSIDERING THAT FOREIGNERS HAD BEEN NET SELLERS OF US STOCKS FROM THE END OF 1987 THROUGH 1992 SAID MR STRONGIN OF THE SIA HE ATTRIBUTED FOREIGNERS' INCREASED APPETITES TO A STRENGTHENING DOLLAR AND FASTER US ECONOMIC GROWTH 9404200183 940420 WHO'S NEWS DAVIS AFTER LEAVING PARAMOUNT TO RUN COMPANY INVESTING IN TROUBLED FIRMS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL ATTENTION TROUBLED COMPANIES MARTIN DAVIS WANTS TO HELP YOU MR DAVIS WILL STEP DOWN AT PARAMOUNT COMMUNICATIONS INC AFTER ITS SALE TO VIACOM INC GOES THROUGH NEXT MONTH RATHER THAN RETIRE THE 67YEAROLD BRONX NY NATIVE PLANS TO DO WHAT HE SAYS HE DOES BEST WORKING WITH STRUGGLING FIRMS AND RESTORING VALUE FOR STOCKHOLDERS IF I HAVE A CLIENT IT WILL BE THE SHAREHOLDERS HE SAYS HIS VEHICLE WILL BE CALLED WELLSPRING ASSOCIATES WHICH ALREADY HAS LEASED OFFICE SPACE IN MIDTOWN MANHATTAN AND EXPECTS TO BE IN BUSINESS BY SEPTEMBER MR DAVIS WILL BE JOINED IN THE ENTERPRISE BY HIS LONGTIME CHIEF LIEUTENANT DONALD ORESMAN 68 WHO IS CURRENTLY PARAMOUNT'S GENERAL COUNSEL MR DAVIS SAYS HE HAS TALKED WITH A NUMBER OF INVESTORS INCLUDING FOREIGN BANKS WHICH HAVE EXPRESSED INTEREST IN BACKING HIM IN ADDITION MR DAVIS SAYS HE WILL PUT UP AS MUCH OF HIS OWN MONEY AS IT TAKES THE PARAMOUNT SALE WILL LEAVE HIM WITH MORE THAN 50 MILLION IN CASH PLUS VIACOM STOCK VALUED AT 29 MILLION WHICH HE DOESN'T PLAN TO SELL THE LEAST OF OUR PROBLEMS WILL BE FUNDING HE SAYS THE BIGGEST WILL BE FINDING THE RIGHT OPPORTUNITIES INDEED A SIMILAR VENTURE TO WHAT MR DAVIS PROPOSES HAS HAD TROUBLE GETTING OFF THE GROUND THREE YEARS AGO DILLON READ & CO STARTED A FUND TO INVEST IN TROUBLED COMPANIES AND WITH THE HELP OF CHIEF EXECUTIVES OF OTHER FIRMS WORK WITH MANAGEMENT ON A FRIENDLY BASIS THE FUND ALLIED INVESTMENT PARTNERS LP HAS YET TO MAKE AN INVESTMENT INVESTMENT BANKERS SAY MR DAVIS'S IDEA LIKE DILLON READ'S IS A HARD SELL BECAUSE COMPANY MANAGEMENTS WOULD OBJECT TO LETTING AN OUTSIDER GET DEEPLY INVOLVED WITH OPERATIONS BUT MR DAVIS IS CONFIDENT THAT SHAREHOLDERS WILL SEEK HIS HELP I KNOW I HAVE A FOLLOWING IN THE INVESTMENT COMMUNITY HE SAYS ANOTHER OBSTACLE WILL BE OVERCOMING PRECEDENT MANY FORMER CHIEF EXECUTIVES OF RETIREMENT AGE HAVE TRIED TO REMAIN PLAYERS AFTER STEPPING DOWN FEW HAVE MADE A MARK BUT MR DAVIS SAYS HE IS COMMITTED TO MAKING IT HAPPEN I'M NOT READY TO RETIRE HE SAYS MY HOBBY IS WORK AFTER MAKING A SIZABLE INVESTMENT MR DAVIS WOULD ACT AS AN ADVISER TO THE COMPANY WHOSE STOCK HE BUYS EITHER TO ITS BOARD OR TO MANAGEMENT RATHER THAN GETTING PAID A FEE THE REWARD WOULD COME FROM ANY APPRECIATION IN THE COMPANY'S STOCK PRICE MR DAVIS SAYS HE WILL DO NO HOSTILE RAIDS HE IS INTERESTED IN GETTING INVOLVED ONLY WITH COMPANIES THAT ASK FOR HIS HELP IF IT'S NOT ON A FRIENDLY BASIS IT MAKES NO SENSE HE SAYS FOR WELLSPRING MR DAVIS WILL DRAW ON HIS 11YEAR TENURE AS CHAIRMAN OF GULF & WESTERN LATER RENAMED PARAMOUNT MR DAVIS UNDERTOOK A MASSIVE RESTRUCTURING OF THE COMPANY THAT PRODUCED GREAT RETURNS FOR INVESTORS HE CREATED SHAREHOLDER VALUE LIKE NO OTHER CHIEF EXECUTIVE DID AT THAT TIME SAYS REECE OVERCASH WHO HEADS ASSOCIATES CORP A PARAMOUNT SUBSIDIARY THAT MR DAVIS SOLD TO FORD MOTOR CO FOR 335 BILLION IN 1989 THOUGH MR DAVIS HAS BEEN CRITICIZED FOR HIS HANDLING OF PERSONNEL PARTICULARLY HIS PERCEIVED INABILITY TO RETAIN TALENT AT THE PARAMOUNT FILM STUDIO HIS WORK AT RESTRUCTURING PARAMOUNT HAS BEEN BETTER RECEIVED SUMMING UP MR DAVIS'S LEGACY FUND MANAGER MARIO GABELLI A LONGTIME PARAMOUNT SHAREHOLDER NOTES THAT MR DAVIS FARED BETTER AS A TURNAROUND SPECIALIST THAN AS A BUILDER CLEARLY HE DIDN'T GO OUT AND START MTV MR GABELLI SAYS BUT MR DAVIS BECAUSE OF HIS TOUGHNESS AND RESPECT FOR SHAREHOLDERS WOULD BE IDEAL FOR COMPANIES IN NEED OF COSTCUTTING AND ASSET SALES MR GABELLI SAYS HE VOLUNTEERS BORDEN INC AND WESTINGHOUSE ELECTRIC CO AS TWO THAT COULD BENEFIT FROM MR DAVIS'S SKILLS IN THAT SORT OF THING HE WOULD BE VERY GOOD I WOULD POSSIBLY PUT MONEY WITH HIM IN THAT KIND OF VENTURE DURING MR DAVIS'S TENURE PARAMOUNT'S STOCK ROSE TO MORE THAN 80 A SHARE LATE LAST YEAR FROM 8 WHEN MR DAVIS BECAME CHIEF EXECUTIVE ANALYSTS HOWEVER COUNTER THAT PARAMOUNT SHAREHOLDERS BENEFITED NOT BECAUSE MR DAVIS BUILT A WORLDCLASS ENTERTAINMENT COMPANY BUT BECAUSE MR DAVIS LUCKED INTO A BIDDING WAR BETWEEN VIACOM AND QVC NETWORK INC NOW QVC INC IF SHAREHOLDERS WON IT WAS BECAUSE OF SHEER LUCK SAYS LISBETH BARRON OF SG WARBURG & CO IT REQUIRED A TAKEOVER FOR SHAREHOLDERS TO GET VALUE NONSENSE MR DAVIS REPLIES HE SAYS THE COMPANY WOULDN'T HAVE ATTRACTED SUCH A HIGH PRICE IF NOT FOR HIS EFFORTS WE WERE VICTIMS OF OUR OWN SUCCESS HE SAYS 9404200182 940420 AVENOR TO SELL ST LAURENT UNIT IN IPO PARENT'S LOSS NARROWED IN FIRST PERIOD MONTREAL AVENOR INC SAID IT PLANS TO SELL ITS ST LAURENT PAPERBOARD INC UNIT THROUGH AN INITIAL PUBLIC OFFERING BY THE UNIT A TRANSACTION EXPECTED TO BE VALUED AT 335 MILLION CANADIAN DOLLARS US2412 MILLION TO C360 MILLION ST LAURENT WILL TAKE OVER AVENOR'S PAPERBOARD AND PACKAGINGRELATED BUSINESS WHICH HAD C281 MILLION IN SALES AND EMPLOYED ABOUT 1400 PEOPLE LAST YEAR ST LAURENT WILL BE PROFITABLE IN 1994 SAID JAY GURANDIANO THE UNIT'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SEPARATELY AVENOR A MONTREAL FORESTPRODUCTS COMPANY REPORTED THAT ITS FIRSTQUARTER LOSS NARROWED TO C341 MILLION OR 53 CANADIAN CENTS A SHARE FROM C648 MILLION OR C123 A SHARE FOR THE YEAREARLIER PERIOD SALES ROSE TO C4974 MILLION FROM C4505 MILLION A YEAR EARLIER PAUL GAGNE AVENOR'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY WILL PROBABLY CONTINUE TO LOSE MONEY IN 1994 BUT WE SHOULD BE ABLE TO SEE A PROFITABLE YEAR IN 1995 DEPENDING ON HOW PRICES AND EXCHANGE RATES EVOLVE HE SAID THE COMPANY HAS POSTED LOSSES EVERY YEAR SINCE 1990 DURING ONE OF THE WORST CYCLICAL SLUMPS FOR NORTH AMERICA'S FORESTPRODUCTS INDUSTRY DAVID TOOLE SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID NEARLY HALF THE IMPROVEMENT IN THE FIRSTQUARTER RESULTS WAS DUE TO THE DECLINE IN VALUE OF THE CANADIAN DOLLAR FROM YEAREARLIER LEVELS A TREND THAT INCREASES THE VALUE IN CANADIAN CURRENCY OF REVENUES DENOMINATED IN US DOLLARS WITH THE SALE OF ITS PACKAGINGMATERIALS BUSINESS WHICH IS EXPECTED TO CLOSE IN JUNE AVENOR'S OPERATIONS WILL BE CONCENTRATED HEAVILY IN NEWSPRINT PULP AND WHITE PAPER THE COMPANY ALSO RETAINS A 51 STAKE IN PACIFIC FOREST PRODUCTS LTD A COMPANY FORMED LAST YEAR FROM AVENOR'S WOODPRODUCTS GROUP IN BRITISH COLUMBIA PRICES FOR PULP AND TO A LESSER EXTENT FOR NEWSPRINT HAVE MOVED UP LATELY ALBEIT FROM DEPRESSED LEVELS PRICES FOR WHITE PAPER USED IN OFFICES FELL BY 8 DURING THE FIRST QUARTER BUT CONDITIONS IN THAT MARKET ARE ALSO IMPROVING MR TOOLE SAID AVENOR FORMERLY KNOWN AS CANADIAN PACIFIC FOREST PRODUCTS LTD CHANGED ITS NAME RECENTLY THE MOVE FOLLOWED LAST YEAR'S SALE BY CANADIAN PACIFIC LTD A MONTREAL HOLDING COMPANY OF ITS MAJORITY STAKE IN THE FORESTPRODUCTS COMPANY 9404200181 940420 ECONOMY SALLIE MAE CONSIDERS JOB RETRAINING AS A NEW BUSINESS VENTURE TO EXPLORE BY ANITA SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE STUDENT LOAN MARKETING ASSOCIATION IS CONSIDERING GETTING INTO THE JOBRETRAINING BUSINESS SALLIE MAE WHICH MAKES A SECONDARY MARKET FOR STUDENT LOANS BY PURCHASING STUDENT LOANS AND USING THEM AS COLLATERAL FOR SECURITIES IT ISSUES IS EXPLORING THE POSSIBILITY OF A SECONDARY MARKET FOR JOBTRAINING LOANS AND PERHAPS LENDING DIRECTLY TO COMMUNITY COLLEGES THAT PROVIDE SUCH TRAINING IT ALSO IS INTERESTED IN GOING BEYOND ITS TRADITIONAL LENDING ROLE TO WORK AS A JOBTRAINING CONSULTANT PERHAPS DEVELOPING A HUGE DATA BASE THAT WOULD ALLOW COMPANIES TO FIND THE MOST SUITABLE JOBTRAINING PROGRAMS AVAILABLE WITH THE FEDERAL GOVERNMENT'S GUARANTEED STUDENTLOAN PROGRAM BEING PHASED OUT SALLIE MAE IS LOOKING FOR NEW BUSINESS VENTURES AND WORKFORCE TRAINING IS A LIKELY TARGET GIVEN THE CLINTON ADMINISTRATION'S INTEREST IN THE SUBJECT PRICE WATERHOUSE INC RELEASED A REPORT CONDUCTED PARTLY ON SALLIE MAE'S BEHALF PROVIDING EVIDENCE FOR THE NEED FOR SUCH SERVICES WHILE ONLY 5 OF THE 1062 COMPANIES SURVEYED HAD SOUGHT PRIVATESECTOR LOANS TO FINANCE TRAINING IT FOUND THAT 44 BELIEVED WORKINGCAPITAL LOANS FOR TRAINING WOULD BE USEFUL ABOUT 70 OF EMPLOYERS SURVEYED SAID THEY'D FIND INCREASED INFORMATION ABOUT TRAINING PROGRAMS HELPFUL WHILE MORE THAN HALF LIKED THE IDEA OF HAVING A TRAINING SUPPLIER THAT OFFERED FINANCING TERMS TO PAY FOR TRAINING SALLIE MAE PRESIDENT LAWRENCE HOUGH SAID THE REPORT SHOWED A VERY CLEAR EXPRESSION OF CEO INTEREST IN INVESTING IN THEIR EMPLOYEES MR HOUGH SAID SALLIE MAE HAS BEEN LOOKING AT WORKFORCE TRAINING FOR THE PAST THREE YEARS AND HAD RECEIVED ENCOURAGEMENT FROM MEMBERS OF CONGRESS TO EXPLORE THE USE OF PRIVATE CAPITAL AS A WAY OF FUNDING JOB TRAINING HE SAID THE COMPANY WAS NOWHERE NEAR READY TO LAUNCH INTO THE BUSINESS BUT WAS IN A THINKING PHASE OF DEVELOPMENT BEFORE SALLIE MAE COULD LOAN MONEY FOR JOB RETRAINING CONGRESS WOULD HAVE TO EXPAND THE COMPANY'S CHARTER REP STEVE GUNDERSON R WIS HAS INTRODUCED A BILL THAT WOULD ESTABLISH A PROGRAM TO PROVIDE GUARANTEED LOANS FOR WORKER RETRAINING WHICH WOULD ALLOW SALLIE MAE TO PURCHASE THE BANK LOANS BUT RATHER THAN CHANGE SALLIE MAE'S CHARTER IT SIMPLY DEFINES THESE LOANS AS STUDENT LOANS SO THE COMPANY WOULD BE ELIGIBLE TO BUY THEM MR HOUGH SAID THE GUNDERSON PROPOSAL FOCUSED TOO NARROWLY ON CREDIT AND HE WOULD FAVOR LEGISLATION THAT WOULD LET SALLIE MAE DO TRAINING CONSULTING HE SAID HE BELIEVED THERE WAS A NEED FOR A DATABASE TO LINK TRAINING PROVIDERS AND EMPLOYERS WE HAPPEN TO BE PRETTY GOOD AT INTEGRATION OF SYSTEMS HE SAID WORKFORCE TRAINING WAS ONE OF A HALF DOZEN INITIATIVES THE COMPANY MIGHT MOVE INTO IF IT COULD GET RECHARTERED BY CONGRESS MR HOUGH SAID 9404200180 940420 ENTERPRISE SPREAD OF MICROBREWERS SPAWNS INDUSTRY OF SUPPLIERS ADVISERS BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL PORTLAND ORE ROBERT LIEDL PLANT MANAGER OF GAMBRINUS MALTING CORP HOLDS HIS HEAD HIGH THRUSTS HIS CHEST FORWARD AND ANNOUNCES WE ARE THE SMALLEST MALT HOUSE IN NORTH AMERICA HERE AT THE 11TH ANNUAL MICROBREWERS AND PUBBREWERS CONFERENCE SMALL IS BEAUTIFUL AND BIGGER THAN EVER THAT HAS SPAWNED A WHOLE NEW INDUSTRY OF BREWERY SUPPLIERS BUILDERS AND CONSULTANTS EXHIBITORS PACKED MORE THAN 80 BOOTHS AT THE CONFERENCE HERE LAST WEEK IN 1984 ONLY TWO SHOWED UP TEN YEARS AGO WHEN THE FIRST SMALL PLAYERS BEGAN TO BUILD BREWHOUSES THEY HAD TO RETROFIT OLD DAIRY EQUIPMENT AND SCROUNGE FOR USED VALVES AND KEGS FROM BIG BREWERS NOW THERE ARE A DOZEN SMALL BREWHOUSE BUILDERS A FEW COMPANIES THAT MAKE BOTTLING LINES FOR LITTLE BREWERIES A COUPLE OF DOZEN REGIONAL AND NATIONAL BEER PUBLICATIONS AND A BEVY OF SPECIALIZED HOP AND MALT GROWERS THAT CATER TO MICROBREWERS THE NEW INDUSTRY ALSO HAS GIVEN SOME LAIDOFF BIG BREWERY EXECUTIVES NEW CAREERS AS CONSULTANTS AND PROVIDED A NEW SOURCE OF REVENUE FOR OLDLINE BREWERY SUPPLIERS THE INDUSTRY ALSO HAS BOOSTED NORTH AMERICA'S REPUTATION IN THE BEER WORLD A DECADE AGO THE TECHNOLOGY FOR BREWING BEER CAME FROM GERMANY ALONE BUT TODAY JAPANESE AND LATIN AMERICAN BREWERS ARE COMING TO THE US AND CANADA FOR EQUIPMENT TO START MICROBREWERIES FOUR BREWPUBS HAVE SPRUNG UP IN ARGENTINA ALL WITH NORTH AMERICAN EQUIPMENT AND A TEAM OF 22 JAPANESE BUSINESSMEN WHO WANT TO OPEN MICROBREWERIES IN JAPAN VISITED THE TRADE SHOW HERE IT LOOKS AS THOUGH THE BOOM ISN'T OVER EITHER AT LEAST 400 OF THE 1150 ATTENDEES AT LAST WEEK'S CONFERENCE WERE WANNABE BREWERS CRUISING THE TRADESHOW FLOOR IN SEARCH OF INEXPENSIVE EQUIPMENT EXPERIENCED BREWMASTERS TO HIRE AND FINANCING THE INSTITUTE FOR BREWING STUDIES WHICH HOSTED THE CONFERENCE ESTIMATES 150 BREWERIES AND BREWPUBS WILL OPEN IN NORTH AMERICA THIS YEAR COMPARED WITH 100 NEW ONES LAST YEAR ONE OF SIX BREWPUBS AND ONE OF FOUR MICROBREWERIES HOWEVER EVENTUALLY FAIL THE NEWCOMERS WON'T HAVE TO BEG FOR SUPPLIES WHEN SMALL BREWERS FIRST STARTED CALLING GREAT WESTERN MALTING CO OF VANCOUVER WASH FOR MALT ROASTED BARLEY USED TO MAKE BEER IN 1983 LEE ANN STEWART TOLD THEM TO CALL BACK WHEN THEY COULD BUY A RAILCAR LOAD 160000 POUNDS BUT THE SMALL BREWERS KEPT CALLING AND MS STEWART WENT TO HER BOSS WE BETTER HELP THESE GUYS THEY'RE NOT GOING AWAY SHE RECALLS TELLING HIM GREAT WESTERN BEGAN LETTING BREWERS LIKE KEN GROSSMAN OF SIERRA NEVADA BREWING CO BACK THEIR PICKUP TRUCKS UP TO THE LOADING DOCK TO TAKE MALT HOME THAT SEEMED A LITTLE WEIRD SHE SAYS SO THE COMPANY FOUND SOME FURNITURE BOXES AND LINED THEM WITH PLASTIC FOR THE LITTLE BREWERS EVENTUALLY GREAT WESTERN CONTRACTED WITH AN INDEPENDENT WAREHOUSE TO SACK MALT IN 80POUND BAGS TODAY MICROBREWERS ACCOUNT FOR ABOUT A TENTH OF THE COMPANY'S SALES MS STEWART SAYS HOP GROWERS TOO HAD TO ADJUST TO SMALL ORDERS SMALL BREWERS BEGAN SHOWING UP TO BUY SINGLE 200POUND BALES OF HOPS WHICH ADD FLAVOR TO BEER IN 1980 SAYS RALPH OLSON VICE PRESIDENT OF OPERATIONS FOR HOPUNION USA INC AT THAT TIME HE SAYS HOPUNION HAD THREE OR FOUR CUSTOMERS SOLD ONLY RAILCAR LOADS AND SHIPPED ONLY TWICE A WEEK TODAY THE COMPANY RUNS A SEPARATE WAREHOUSE FOR SMALL HOPS BUYERS THAT HAS 300 CUSTOMERS HOPUNION WILL SHIP ANY DAY OF THE WEEK AND PACKAGE HOPS HOWEVER THE CUSTOMER WANTS THEM MR OLSON SAYS SERVICING THE LITTLE GUYS INCLUDING HOMEBREWERS TAKES MORE TIME AND EFFORT AND THE MICROBREW BUSINESS MAKES UP ONLY ABOUT 10 OF THE COMPANY'S VOLUME BUT BECAUSE IT CHARGES MORE FOR SMALL ORDERS REVENUE PER BALE FROM THOSE SALES IS MUCH HIGHER MR OLSON SAYS FOR OTHER SUPPLIERS MICROBREWERS ARE A LARGE PART OR EVEN ALL OF THEIR BUSINESS JVNW INC WILSONVILLE ORE WAS BUILDING STAINLESS STEEL TANKS FOR THE FOOD INDUSTRY IN 1985 WHEN IT CONTRACTED TO MAKE ITS FIRST BREWHOUSE FOR CRIPPLE CREEK ROCK BREWERY IN BERKELEY CALIF TODAY BUILDING STAINLESS STEEL BREWHOUSES ABOUT 20 A YEAR REPRESENTS ABOUT HALF OF THE COMPANY'S BUSINESS SAYS DON JONES PRESIDENT JVNW'S SUCCESS QUICKLY SPAWNED COMPETITORS ERWIN EIBERT MAHWAH NJ HAD RUN A MANUFACTURER OF CONTROLS AND VALVES FOR BIG BREWERS FOR 23 YEARS WHEN HE WAS SUDDENLY BOMBARDED BY SMALL BREWERS LOOKING FOR EQUIPMENT TO RETROFIT OLD DAIRY TANKS HE STARTED PUB BREWING CO TO BUILD SMALL COPPER BREWERIES BUILDING HIS FIRST IN 1989 LAST YEAR HE BUILT 28 NOW HIS NEW BUSINESS IS BIGGER THAN HIS OLD ONE AND HE HAS SOLD BREWPUBS IN MOSCOW SINGAPORE AND CHINA FORMER MICROBREWERS ALSO HAVE JUMPED INTO THE SUPPLY BUSINESS DAVE MEHEEN'S OWN UNDERINSURED MICROBREWERY IN PASCO WASH BURNED DOWN IN 1989 FORMERLY A MECHANICAL ENGINEER WHO BUILT POWER PLANTS MR MEHEEN HAD CRAFTED HIS OWN BOTTLING EQUIPMENT FOR HIS MICROBREWERY WHEN HE COULDN'T FIND A BOTTLING SYSTEM ON THE MARKET THAT WAS SMALL OR CHEAP ENOUGH AFTER THE FIRE OTHER BREWERS STARTED CALLING AND ASKING HIM TO BUILD BOTTLING LINES FOR THEM HE BUILT THE FIRST ONE IN 1990 AND LAST YEAR BUILT 17 OF THE 26500 SYSTEMS FOR OTHER BREWERS HIS SYSTEMS USE COMPUTERS TO ELIMINATE OXYGEN FROM THE BOTTLES OXYGEN DAMAGES BEER AND THEY FILL ABOUT 30 CASES AN HOUR BIG BOTTLING SYSTEMS FOR BIG BREWERS FILL 1700 CASES OF BEER AN HOUR AND START AT 100000 OTHER OPPORTUNISTS HAVE INCLUDED DOUG ARKELL A FORMER REALESTATE INVESTOR WHO INVENTED A DECORATIVE BOTTLE WITH A REUSABLE RECYCLABLE CERAMICLIKE CAP LIKE THE WELLKNOWN GROLSCH BOTTLE FOR SMALL BREWERS WHO WANT TO DRESS UP THEIR SPECIAL BREWS PHIL DOERSAM STARTED SOUTHERN DRAFT A BEER NEWSPAPER FOR THE SOUTHEAST WITH HIS WIFE AND FATHERINLAW CREATING ONE OF NEARLY TWO DOZEN PUBLICATIONS CATERING TO NEW BEER CONNOISSEURS AND JOHN FREY A PARTNER IN TOSCA LTD GREEN BAY WIS BUYS USED KEGS FROM THE BIG BREWERS RECONDITIONS THEM AND SELLS THEM TO MICROBREWERS MANY BREWERS AND SUPPLIERS ACTUALLY WANT TO STAY SMALL AT ITS BOOTH AT THE TRADE SHOW GAMBRINUS THE SMALL CANADIAN MALTING COMPANY PROUDLY DISPLAYS A LIST OF ITS CUSTOMERS 16 SMALL BREWERS IN CANADA AND ABOUT 30 IN THE US WE'RE SMALL ENOUGH TO HAVE PERSONAL CONTACT WITH OUR CUSTOMERS SAYS DEBORAH COTE THE OFFICE ADMINISTRATOR AND ONE OF SIX EMPLOYEES OF GAMBRINUS WE LIKE IT THAT WAY 9404200179 940420 POLITICS & POLICY CAPITOL HILL SUPPORT FOR CURBS ON LOBBYING MASKS FEELINGS THAT BILL IS MOSTLY SMOKE AND MIRRORS BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON I THINK LOBBYISTS GET A BAD RAP SAYS ROD GRAMS LOBBYISTS HAVE A JUSTIFIABLE REASON FOR BEING HERE I SUPPORT THEIR CAUSE LOTS OF PEOPLE HERE FEEL THAT WAY AFTER ALL THOUSANDS OF LAWYERS AND CONSULTANTS MAKE THEIR LIVINGS PLYING THE FEDERAL GOVERNMENT WHAT MAKES MR GRAMS'S COMMENTS REMARKABLE IS THAT HE'S A CONGRESSMAN PRODDED BY ROSS PEROT GOODGOVERNMENT GROUPS AND HIDDENCAMERA TELEVISION EXPOSES CONGRESS HAS FIXED ITS SIGHTS ON LOBBYISTS WITH LEGISLATION BILLED AS AN ASSAULT ON INFLUENCEBUYING IT'S ALMOST CERTAIN TO PASS BY HUGE MARGINS BUT ACTUALLY MANY LAWMAKERS AGREE WITH MR GRAMS A MINNESOTA REPUBLICAN WHO IS SEEKING A SENATE SEAT THIS YEAR THEY'RE JUST TOO SCARED OF VOTERS TO JOIN HIM IN OPPOSING THE MEASURE THEY REGARD THE BILL WHICH SUPPOSEDLY WOULD BAR GIFTS AND FAVORS FROM LOBBYISTS AS MUCH MORE ABOUT IMAGE AND PUBLICRELATIONS THAN ABOUT REALITY THE LOBBY BILL THAT PASSED THE HOUSE 315110 LAST MONTH WOULD DIVIDE THE WORLD INTO TWO TYPES OF PEOPLE REGISTERED LOBBYISTS WHO COULDN'T TREAT LAWMAKERS TO DINNER OR A BALLGAME AND OTHER PEOPLE WHO STILL COULD THE DISTINCTION CAN BECOME SOMEWHAT TORTURED HOWEVER A CORPORATE CHIEF EXECUTIVE OFFICER FOR INSTANCE COULD STILL PICK UP THE TAB EVEN IF THE COMPANY'S LOBBYIST COULDN'T THE BILL NEXT GOES TO A HOUSESENATE CONFERENCE COMMITTEE WHILE THE SENATE SEPARATELY PLANS TO CONSIDER ANOTHER PROPOSAL TO OUTLAW RECREATIONAL TRIPS LAWMAKERS TAKE ON THE TAB OF SPECIAL INTERESTS THAT CAUSE WAS EMBARRASSED RECENTLY HOWEVER BY DISCLOSURE OF AGGRESSIVE FUNDRAISING PRACTICES BY AIDES TO ITS COSPONSOR DEMOCRATIC SEN FRANK LAUTENBERG OF NEW JERSEY FOR MOST LAWMAKERS THE VOTE ON THE LOBBYING BILL IS SIMPLE SUPPORT IT AND LOOK GOOD BEFORE THE HOME FOLKS OR OPPOSE IT AND GET BEAT OVER THE HEAD BY POLITICAL FOES CALIFORNIA DEMOCRATIC REP VIC FAZIO FOR INSTANCE SAYS THAT INFLUENCEBUYING BY LOBBYISTS ISN'T A WIDESPREAD PROBLEM BUT AS CHAIRMAN OF HIS PARTY'S CONGRESSIONAL CAMPAIGN COMMITTEE LOOKS FORWARD TO WIELDING THE ISSUE AGAINST NAYSAYING REPUBLICANS LIKE MR GRAMS ANYBODY WHO VOTES AGAINST IT HAS TO TAKE THE CONSEQUENCES SAYS MR FAZIO GIVEN THE WEAPONS OF MODERNDAY POLITICAL WARFARE CHIEFLY 30SECOND TV ADS IT'S NO IDLE THREAT STILL SOME MEMBERS OF CONGRESS AREN'T WILLING TO FOLLOW THE LEMMINGS OFF A CLIFF AS DEMOCRATIC REP NEIL ABERCROMBIE OF HAWAII DESCRIBES JITTERY COLLEAGUES LIKE MR GRAMS MR ABERCROMBIE WAS AMONG THE 110 HOUSE MEMBERS WHO STOOD UP AGAINST THE LOBBY BILL POTENTIAL FALLOUT BE DAMNED I DON'T CURRY FAVOR EXPLAINS THE LONGHAIRED HAWAIIAN WHO REJECTS THE CURRENT CONGRESSBASHING FAD BY INSISTING THAT I EARN EVERY PENNY OF HIS 133600 SALARY THE MOST PROMINENT OPPONENTS OF REFORM ARE VETERAN MEMBERS SOMETIMES DUBBED THE GOLF AND TENNIS CAUCUS WHO HAVE LONG SINCE GROWN ACCUSTOMED TO THE FAVORS OF FREESPENDING LOBBYISTS REP JACK BROOKS CHAIRMAN OF THE JUDICIARY COMMITTEE SPOKE FOR MANY DURING THE RECENT HOUSE DEBATE WHEN HE TOOK OFFENSE AT THE NOTION THAT I WOULD EVER BE INFLUENCED TO LIFT A FINGER ON BEHALF OF SOMEBODY WHO BOUGHT ME A 1095 DINNER MOST MEMBERS OF THE CONGRESSIONAL BLACK CAUCUS ALSO OPPOSED THE LOBBY BILL FEARING IT WOULD IMPOSE DISCLOSURE BURDENS ON NONPROFIT GROUPS AMONG THEM THE CONGRESSIONAL BLACK CAUCUS FOUNDATION DEMOCRATIC REP ALCEE HASTINGS OF FLORIDA COMPLAINS AS WELL OF THE FOLLY OF CRACKING DOWN ON GIFTS WHILE LEAVING UNDISTURBED AS THE HOUSE HAS DONE IN ITS CAMPAIGNFINANCE EFFORTS CONTRIBUTION LIMITS ON POLITICALACTION COMMITTEES IT'S ABSURD TO SAY THAT A LOBBYIST CANNOT TAKE ME TO DINNER BUT A LOBBYIST CAN ARRANGE TO HAVE PEOPLE CONTRIBUTE 10000 TO MY CAMPAIGN SAYS REP HASTINGS A FORMER FEDERAL JUDGE WHO BECAME FAMILIAR WITH ETHICS CONTROVERSIES WHEN HE WAS IMPEACHED BY THE HOUSE OVER BRIBERY ALLEGATIONS IN THE 1980S SOUTHERNERS GENERALLY ARE MORE WILLING TO STAND AGAINST THE TIDE GOP REP BOB LIVINGSTON OF LOUISIANA SAYS HE HAS TAKEN JUST ONE JUNKET ON LOBBYISTS' TABS DURING HIS 17 YEARS IN CONGRESS BUT DOESN'T MIND ACKNOWLEDGING THAT HE PLAYS GOLF WITH LOBBYISTS AROUND WASHINGTON MY BEST SCORE IS 102 SO NOBODY CAN ACCUSE ME OF ABUSING THE SYSTEM MR LIVINGSTON CRACKS HE ADDS AND SOME OUTSIDE CONGRESSIONAL ANALYSTS AGREE THAT THIS CONGRESS IS PROBABLY STRAIGHTER THAN ANY OF ITS PREDECESSORS GIVEN LOUISIANA'S REPUTATION FOR SWASHBUCKLING POLITICS AND HIS OWN SAFE DISTRICT MR LIVINGSTON HAS SOME LATITUDE FOR OUTSPOKENNESS BUT THE RISKS ARE HIGHER FOR MR GRAMS A FORMER TV ANCHORMAN RUNNING IN HIGHTONED MINNESOTA WHO WAS THE ONLY MEMBER OF HIS STATE'S DELEGATION TO OPPOSE THE LOBBY BILL IT WOULD HAVE BEEN SO EASY JUST TO VOTE YES SAYS MR GRAMS 46 YEARS OLD BUT HE CHARGES THAT THE BILL IS A SHAM MEANT TO FOOL THE PUBLIC BY DISTRACTING ATTENTION FROM BIGGER ISSUES LIKE PORKBARREL SPENDING THAT DRIVES UP THE DEFICIT NOT THAT HE'S LOOKING FOR FREE TRIPS I'VE TOLD MY STAFF IF ANYTHING COMES IN THAT SAYS GOLF OR TENNIS ON IT THROW IT IN THE WASTE BASKET MR GRAMS SAYS BUT HE ADDS THAT I'M NOT HERE TO POLICE THOSE WHO ACCEPT SUCH TRIPS FAVORING DISCLOSURE RATHER THAN PROHIBITION HE ADMITS TO SHARING OCCASIONAL MEALS WITH LOBBYISTS SOMETIMES ON HIS TAB SOMETIMES ON THEIRS THE WAY PEOPLE DO IN PRIVATE BUSINESS I CAN'T HAVE 10000 CARPENTERS COMING INTO MY OFFICE BUT THEY HAVE EVERY RIGHT TO HIRE SOMEONE TO COME IN AND SPEAK THEIR CASE THE CONGRESSMAN EXPLAINS SOME OF THOSE MEETINGS ARE GOING TO HAPPEN OVER A LUNCH SOME OF THEM ARE GOING TO HAPPEN OVER A DINNER MAYBE THAT'S THE ONLY TIME YOU CAN SQUEEZE THAT MEETING IN AND WHILE SOME REFORMERS CLUCK ABOUT FANCY WINING AND DINING HE NOTES THERE'S MANY RESTAURANTS IN WASHINGTON WHERE YOU CAN'T EAT LUNCH FOR 20 THE TOUGH PART OF IT MR GRAMS CONCEDES WILL BE EXPLAINING HIS STANCE TO MINNESOTA VOTERS PARTICULARLY SINCE HE HAD CAMPAIGNED SUCCESSFULLY IN 1992 AGAINST CONGRESSIONAL PERKS AND PRIVILEGES THE ISSUE COMES ON TOP OF OTHER PUBLICRELATIONS PROBLEMS MR GRAMS HAS SUFFERED LATELY INCLUDING NEWS THAT HE WAS LATE PAYING LOCAL PROPERTY TAXES I CAN JUST SEE THE HEADLINES OR THE ADS HE FRETS SO CAN THE DEMOCRATS WE PUT OUT A PRESS RELEASE THE MOMENT HE CAST THAT VOTE SAYS PETER FENN MEDIA CONSULTANT TO MR GRAM'S DEMOCRATIC RIVAL ANN WYNIA MR FENN ACCUSES MR GRAMS WHOSE CAMPAIGN HAS HAD MONEY PROBLEMS OF OPPOSING LOBBY REFORM AS A WAY OF COZYING UP TO WELLFINANCED INTERESTS MR GRAMS CAN DRAW ON THE FAVORABLE IMPRESSIONS HE CREATED IN A DECADE ANCHORING THE LOCAL NEWS BUT HE KNOWS THAT ONLY GOES SO FAR THE OLD RULE IS IF YOU HAVE TO EXPLAIN YOU'VE LOST HE SAYS LEGISLATION IN CONGRESS WOULD CLAMP TIGHT RESTRICTIONS ON FAVORS THAT LAWMAKERS COULD ACCEPT FROM LOBBYISTS BUT PUT FEWER LIMITS ON WHAT THEY COULD ACCEPT FROM THE LOBBYISTS' EMPLOYERS 9404200178 940420 JUDGE LIFTS ORDER THAT CLOSED TIRE PLANT OF BRIDGESTONE UNIT OKLAHOMA CITY A FEDERAL JUDGE LATE YESTERDAY LIFTED A TEMPORARY RESTRAINING ORDER THAT PROMPTED THE CLOSING OF BRIDGESTONE/FIRESTONE INC'S OKLAHOMA CITY TIRE PLANT US DISTRICT JUDGE TIMOTHY LEONARD HAD ISSUED THE ORDER MONDAY WHICH DEMANDED THE COMPANY NOT OPERATE THE PLANT DAYTON TIRE UNLESS IT FOLLOWS SAFETY RULES AFTER IT WAS REQUESTED BY THE US LABOR DEPARTMENT THE DEPARTMENT ALSO FINED THE COMPANY 74 MILLION FOR ALLEGED SAFETY VIOLATIONS OFFICIALS AT BRIDGESTONE/FIRESTONE THE US SUBSIDIARY OF BRIDGESTONE CORP IN TOKYO CLOSED THE PLANT ARGUING THE RULING WAS SO BROAD IT ESSENTIALLY BARRED THEM FROM OPERATING THE PLANT EMPLOYS 1600 WORKERS OF WHICH 1200 ARE HOURLY EMPLOYEES A COMPANY SPOKESMAN SAID THE SPOKESMAN SAID WORKERS WERE TO BE CALLED BACK TO WORK STARTING LATE LAST NIGHT THE COMPANY STILL FACES A HEARING BEFORE JUDGE LEONARD OVER WHETHER IT CAN CONTINUE TO OPERATE WHILE THE SAFETY ISSUES ARE RESOLVED A HEARING DATE HAS NOT BEEN SET THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION ALLEGES AMONG OTHER CHARGES THAT THE COMPANY DID NOT OBEY A RULE THAT MACHINERY BE DISCONNECTED AND INOPERATIVE BEFORE REPAIR WORK BEGINS A WORKER ROBERT JULIAN WAS KILLED ON OCT 19 1993 WHEN A TIREASSEMBLY MACHINE STARTED WHILE HE WAS SERVICING IT YESTERDAY A LABOR DEPARTMENT SPOKESWOMAN SAID THE AGENCY HAD NO INTENTION OF CLOSING DOWN THE COMPANY IN AN INTERVIEW MONDAY LABOR SECRETARY ROBERT REICH SAID DESPITE DAYTON TIRE'S SAFETY RECORD THE AGENCY HADN'T CHOSEN TO SHUTTER THE FACILITY BECAUSE IT WANTED TO MAINTAIN JOBS BRIDGESTONE/FIRESTONE'S SPOKESMAN SAID THE COMPANY INTENDS TO CONTEST THE ALLEGATIONS AND APPEAL THE FINE TO THE INDEPENDENT OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION 9404200177 940420 WORLD MARKETS MANY EUROPEAN ASIAN BOURSES GET SLAMMED AGAIN AFTER US INCREASE IN SHORTTERM RATES A WALL STREET JOURNAL NEWS ROUNDUP MANY STOCK MARKETS WORLDWIDE TOOK A DRUBBING YESTERDAY IN REACTION TO THE US INCREASE MONDAY IN SHORTTERM INTEREST RATES LONDON SHARES FELL BUT MANAGED TO BOUNCE UP FROM DEEPER LOSSES SHARES PLUNGED 25 IN FRANKFURT AND 21 IN HONG KONG AND GAVE UP 16 IN SYDNEY AND 11 IN PARIS AND IN ZURICH MEXICO CITY EQUITIES PLUMMETED 34 TOKYO STOCKS ALSO DROPPED HURT BY THE WEAKNESS OF NEW YORK MARKETS IN THE WAKE OF THE US CREDIT TIGHTENING WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11312 DOWN 049 REFLECTING LOWER MARKETS IN ALL REGIONS TOBACCO STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 7541 UP 120 OR 16 WITH PHILIP MORRIS OF THE US POSTING A 32 GAIN IN ITS LOCAL CURRENCY OIL DRILLING STOCKS TRAILED AT 10290 DOWN 472 OR 44 WITH GLOBAL MARINE OF THE US SLIDING 65 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 102 POINTS TO 31280 THE FT 30STOCK INDEX DECLINED 21 POINTS TO 24842 VOLUME WAS 7685 MILLION SHARES COMPARED WITH 6801 SHARES A DAY EARLIER THE BENCHMARK 100STOCK GAUGE AT THE DAY'S HIGH WAS UP JUST 73 POINTS AND AT ITS SESSION LOW HAD LOST 245 POINTS BUT IT REBOUNDED AS ANOTHER FEARED SELLOFF ON WALL STREET DIDN'T MATERIALIZE THE LONDON BOURSE'S HIGHER OPENING ENCOURAGED DEALERS WHO VIEWED THE DAY'S LOW VOLATILITY AS A SIGN THAT THE MARKET MAY BE DONE FACTORING IN HIGHER US INTEREST RATES THOUGH THE LOWER FINISH PRESSURED BY A WEAKENING IN FUTURES DEALINGS INDICATED CAUTION HADN'T DISSIPATED IN FRANKFURT THE DAX 30STOCK INDEX PLUMMETED 5636 POINTS TO 217242 PULLED DOWN BY SAGGING GERMAN GOVERNMENT BOND AND EQUITIES FUTURES STOCKS' PLUNGE WAS TRIGGERED BY THE CREDIT TIGHTENING BY THE US FEDERAL RESERVE AND FUELED BY SALES BY FOREIGN INVESTORS PARTICULARLY THOSE IN THE US GERMAN BANKS CONTINUED TO BE HARDHIT ON WORRIES ABOUT THEIR FINANCIAL EXPOSURE IN THE FAILURE OF A BIG PROPERTY DEVELOPMENT CONCERN IN PARIS STOCKS' SHARP DROP CAME AFTER HEAVY SELLING IN THE BOND MARKET AND A SUDDEN WEAKENING OF THE FRENCH FRANC IN CURRENCY DEALINGS THE SESSION BEGAN ON A SOUR NOTE IN THE WAKE OF THE US RATE BOOST AND WALL STREET'S DIVE AND PARIS EQUITIES MIRRORED A SELLOFF IN FRENCH TREASURYS AND RECORD LOWS IN BOND FUTURES IN AMSTERDAM SHARES FELL BROADLY YANKED DOWN BY SLUMPING BOND PRICES THOUGH EQUITIES DID RECOVER A BIT BEFORE THE CLOSE ON WALL STREET'S HIGHER OPENING YESTERDAY AND SOME OPTIONSDRIVEN BUYING IN MILAN EQUITIES DROPPED IN WHAT WAS VIEWED AS A TEMPORARY CORRECTION AFTER THE RECENT STRONG RUNUP BUT IN MADRID AFTER PANIC SELLING DROVE THE MARKET TO A LOW FOR THIS YEAR ON THE US MARKETS' DIVE MONDAY AND FEARS OF SPANISH POLITICAL INSTABILITY SHARES CLOSED HIGHER BOOSTED BY EARLY FIRMNESS ON US STOCK AND BOND MARKETS IN STOCKHOLM EQUITIES FELL SHARPLY PARTLY BECAUSE OF A BIG RISE IN SWEDISH LENDING RATES IN ZURICH BEARISHNESS ABOUT THE US RATE MOVE AND FALLING EUROPEAN BOND MARKETS PUSHED SWISS SHARES DOWN IN BRUSSELS STOCKS FELL WITH THE FOCUS ON THOSE ISSUES SENSITIVE TO INTEREST RATES FOLLOWING THE US MONETARY MOVE IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 11273 POINTS MONDAY FELL 8502 TO 2019234 IN TRADING WEDNESDAY THE NIKKEI FELL 13083 POINTS TO CLOSE THE MORNING SESSION AT 2006151 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 320 MILLION SHARES DOWN FROM 387 MILLION SHARES A DAY EARLIER LOSERS OUTNUMBERED GAINERS 687336 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH GAINED 812 POINTS MONDAY DECLINED 623 TO 163701 JAPAN'S POLITICAL SITUATION REMAINS AN ANNOYANCE IN THE MARKET WHICH HAD BUILT INTO PRICES THE EXPECTED SELECTION SOON OF DEPUTY PRIME MINISTER TSUTOMU HATA TO BE THE NEXT PREMIER WITH INVESTORS WAITING TO SEE WHETHER NEW YORK STOCKS WOULD EXTEND THEIR MONDAY PLUNGE VOLUME THINNED AND THE MARKET WAS BATTED UP AND DOWN BY INDEXLINKED ARBITRAGE ACTIVITY DEALINGS WERE MARKED BY SELLING BY PUBLIC PENSION FUNDS DEALERS AND CORPORATE INVESTORS WHILE FOREIGN INVESTORS CONTINUED TO BUY IN SYDNEY STOCKS TUMBLED BROADLY TAKING THE MAIN INDEX DOWN 16 AMID POOR SENTIMENT ABOUT GLOBAL INTEREST RATES FOLLOWING WALL STREET'S MONDAY SLUMP IN HONG KONG AFTER A 32 INTRADAY RETREAT THE MARKET ENDED 21 LOWER ITS FOURTH STRAIGHT DECLINE PROMPTED BY THE US RATE INCREASE WITH THE PROPERTY SECTOR AGAIN LEADING THE WAY DOWN BECAUSE OF INTENSIFIED CONCERNS THAT GOVERNMENT MAY ACT TO PUSH REAL ESTATE PRICES LOWER IN SINGAPORE STOCKS DROPPED AFTER THE GOVERNOR OF JAPAN'S CENTRAL BANK SAID IT WASN'T READY TO CONSIDER INTERESTRATE CUTS IN KUALA LUMPUR EQUITIES SLUMPED 14 IN LIGHT DEALINGS HURT BY PROFITTAKING THAT HIT BLUE CHIPS AS WELL AS TECHNICAL FACTORS AND WALL STREET'S SLIDE THE PREVIOUS DAY IN SEOUL PRICES FELL ON CONCERNS THAT THE SOUTH KOREAN GOVERNMENT'S SALE OF ITS 5 EQUITY IN KOREA TELECOM MAY SAP THE MARKET OF ITS STRENGTH IN WELLINGTON SHARES TUMBLED 17 AS INVESTORS WORRIED ABOUT RISING INTEREST RATES THAT COULD PUSH INSTITUTIONS' FUNDS OUT OF STOCKS AND INTO FIXED INVESTMENTS IN BANGKOK PARTICIPANTS INCLUDING THAI MUTUAL FUNDS AND FOREIGN INSTITUTIONS USED THE US MONETARY TIGHTENING AS AN EXCUSE TO SNARE PROFITS DRIVING PRICES DOWN 29 IN TAIPEI STOCKS ENDED MIXED TO HIGHER REBOUNDING FROM AN EARLY PLUNGE ON PROFITTAKING FOLLOWING IMPRESSIVE GAINS LAST WEEK IN MANILA EQUITIES ROSE FOR THE FIFTH CONSECUTIVE SESSION OVERCOMING EARLY LOSSES WHEN PHILIPPINE AND FOREIGN INVESTORS BOUGHT POSITIONS ON A POSITIVE MARKET OUTLOOK AMONG CORPORATE DEVELOPMENTS IN FRANKFURT FRIED KRUPP AG HOESCHKRUPP SKIDDED 8 MARKS OR 35 TO 223 MARKS 13057 AFTER HEAVY LOSSES FROM STEEL THE INDUSTRIAL GROUP'S 1993 NET LOSS WIDENED TO 590 MILLION MARKS 3454 MILLION FROM 250 MILLION MARKS IN 1992 DEUTSCHE BANK PLUMMETED 3050 OR 39 TO 748 ON A RUMOR THAT A BANK EMPLOYEE WAS GIVEN BRIBES TO SECURE LOANS FOR BANKRUPT GERMAN REAL ESTATE DEVELOPER JUERGEN SCHNEIDER DEUTSCHE BANK DISMISSED THE SPECULATION AS FALSE IN PARIS PECHINEY INTERNATIONAL NOSEDIVED 195 FRENCH FRANCS OR 98 TO 180 FRANCS 3077 THE UNIT OF THE STATECONTROLLED ALUMINUM AND PACKAGING GROUP PECHINEY POSTED AN 85 DROP IN 1993 PROFIT TO 294 MILLION FRANCS 503 MILLION ON A WEAK US BEVERAGECAN MARKET AND SAID ITS 1994 OUTLOOK WAS DISCOURAGING 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 9404200176 940420 TECHNOLOGY AND HEALTH WOMEN WITH BREAST IMPLANTS RECEIVE COURT DEADLINES FOR JOINING SETTLEMENT BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL COURT IN BIRMINGHAM ALA SET DEADLINES IN THE NEXT FEW MONTHS FOR A MILLION OR MORE WOMEN WITH BREAST IMPLANTS TO REACH DECISIONS CONTROLLING THEIR LEGAL RIGHTS IN IMPLANT LITIGATION US DISTRICT JUDGE SAM C POINTER JR IN BIRMINGHAM APPOINTED TO OVERSEE ALL US BREASTIMPLANT LITIGATION SAID THAT ANY WOMEN WHO DON'T WANT TO PARTICIPATE IN A 425 BILLION GLOBAL SETTLEMENT MUST NOTIFY THE COURT IN WRITING BY JUNE 17 WOMEN WHOSE NOTICES OF THEIR INTENT TO OPT OUT OF THE DEAL AREN'T POSTMARKED BY THAT DATE WILL LOSE THE RIGHT TO PURSUE INDIVIDUAL LITIGATION OTHER WOMEN WHO DO WISH TO PARTICIPATE WILL FACE OTHER DEADLINES IN THE NEXT FEW MONTHS THAT ALSO WILL PERMANENTLY AFFECT THEIR LEGAL RIGHTS IN THE LITIGATION JUDGE POINTER HAS GRANTED PRELIMINARY APPROVAL TO THE DEAL WHICH WOULD BECOME THE LARGESTEVER SETTLEMENT OF ANY PRODUCTLIABILITY LITIGATION THE JUDGE'S NOTICE ABOUT DEADLINES MAKES IT VIRTUALLY CERTAIN THAT THE FUND FOR WHICH ALL US AND FOREIGN WOMEN WITH SILICONE OR SALINE BREAST IMPLANTS WILL QUALIFY IS TO BECOME A REALITY WOMEN WHO DECIDE TO PARTICIPATE IN THE SETTLEMENT FUND COULD BECOME ELIGIBLE FOR COMPENSATION RANGING BETWEEN 105000 AND 14 MILLION DEPENDING ON THE NATURE OF THEIR INJURY OR ILLNESS HOWEVER THESE AMOUNTS MAY BE SHARPLY REDUCED IF LARGERTHANEXPECTED NUMBERS OF WOMEN PARTICIPATE IN THE SETTLEMENT FUND THE JUDGE SCHEDULED AN AUG 18 FAIRNESS HEARING IN BIRMINGHAM FOR WOMEN ATTORNEYS AND DOCTORS TO DEBATE THE MERITS OF THE SETTLEMENT THE DEAL INCLUDES MOST MAJOR IMPLANT COMPANIES INCLUDING BRISTOLMYERS SQUIBB CO DOW CORNING CORP A JOINT VENTURE OF DOW CHEMICAL CO AND CORNING INC BAXTER INTERNATIONAL INC AND MINNESOTA MINING & MANUFACTURING CO WOMEN WITH IMPLANTS FROM MOST OTHER COMPANIES ALSO ARE ELIGIBLE TO PARTICIPATE IN THE FUND WOMEN WHO WISH TO GAIN COMPENSATION FROM THE SETTLEMENT FUND AT THE OUTSET OF THE PROGRAM WILL NEED TO FILE A REGISTRATION FORM WITH A COURTAPPOINTED CLAIMS ADMINISTRATOR BY SEPT 16 THE SETTLEMENT PROGRAM WOULD LAST 30 YEARS IF APPROVED CURRENTLY HEALTHY WOMEN WHO GET SICK LATER AND DROP OUT IN FUTURE YEARS AFTER SEEING HOW FAR COMPENSATION SHRINKS BASED ON THE NUMBER OF WOMEN PARTICIPATING WOULD LOSE ANY RIGHT TO PUNITIVE DAMAGES THIS IS ONE BIG REASON THE CORPORATE DEFENDANTS FAVOR THE DEAL THE COURT SAID WOMEN CAN GET INFORMATION ABOUT THE SETTLEMENT PROGRAM AND OBTAIN ALL NECESSARY FORMS BY CALLING 18008876828 US OR 13126098680 OUTSIDE US OR BY WRITING MDL 926 PO BOX 11683 BIRMINGHAM ALA 352021683 WOMEN WHO WISH TO PARTICIPATE IN THE SETTLEMENT SHOULD ADDRESS REGISTRATION FORMS TO CLAIMS ADMINISTRATOR PO BOX 56666 HOUSTON TEXAS 77256 WOMEN WHO WANT TO OPT OUT NEED TO SEND AN EXCLUSION FORM BY JUNE 17 TO MDL 926 EXCLUSION PO BOX 13307 BIRMINGHAM ALA 352023307 9404200175 940420 ECONOMY TRADE DEFICIT GREW SHARPLY IN FEBRUARY EXPORTS OF GOODS TUMBLED ANALYSTS CUT ESTIMATES OF ECONOMY'S STRENGTH BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US TRADE DEFICIT WORSENED SHARPLY AND UNEXPECTEDLY IN FEBRUARY CAUSING MANY ANALYSTS TO LOWER THEIR ESTIMATES FOR FIRSTQUARTER ECONOMIC GROWTH THE COMMERCE DEPARTMENT SAID THE FEBRUARY TRADE GAP FOR GOODS AND SERVICES GREW TO 971 BILLION FROM 664 BILLION IN JANUARY JANUARY'S TRADE IMBALANCE WAS REVISED TO REFLECT A WIDER GAP IT WAS THE MERCHANDISE TRADE BALANCE THAT ERODED THE MOST DURING FEBRUARY EXPORTS OF GOODS TUMBLED 35 TO 3717 BILLION REFLECTING THE CONTINUED ECONOMIC WEAKNESS OF OVERSEAS TRADING PARTNERS SUCH AS GERMANY JAPAN AND MEXICO MEANWHILE US IMPORTS OF GOODS ROSE 24 TO 511 BILLION AS THE ECONOMY CONTINUED TO GAIN MOMENTUM THE NATION'S SERVICE SURPLUS SHRANK A BIT IN FEBRUARY TO 418 BILLION FROM 471 BILLION THE MONTH BEFORE THIS REPORT WAS THE SECOND IN WHICH THE COMMERCE DEPARTMENT RELEASED A COMBINED GOODSANDSERVICES TRADE REPORT SEVERAL ANALYSTS SAID THE NEW REPORT SUGGESTS THAT ECONOMIC GROWTH WAS WEAKER IN THE FIRST QUARTER THAN THEY HAD THOUGHT BRIAN HORRIGAN ECONOMIST WITH LOOMIS SAYLES & CO IN BOSTON SAID THAT BEFORE THE LATEST TRADE FIGURES WERE RELEASED HE ESTIMATED THAT THE ECONOMY GREW AT A 35 ANNUAL RATE IN THE FIRST QUARTER NOW HE HAS MOVED HIS ESTIMATE CLOSER TO 27 ECONOMISTS AT UBS SECURITIES INC IN NEW YORK MOVED THEIR FIRSTQUARTER ESTIMATE TO 32 FROM 4 BECAUSE OF THE TRADE FIGURES BUT SAID THEIR FUNDAMENTAL OUTLOOK FOR THE ECONOMY REMAINS UNCHANGED STRONG IMPORTS ARE A SIGN OF STRONG DOMESTIC DEMAND AND WE DON'T BELIEVE THAT THE LOWEST EXPORT LEVEL IN SIX MONTHS IS THE NEW TREND WHEN RESTOFTHEWORLD GROWTH PROSPECTS ARE ON BALANCE IMPROVING THEY SAID COMMERCE SECRETARY RON BROWN ALSO SAID THE TRADE REPORT WOULD DAMPEN FIRSTQUARTER FIGURES ON GROSS DOMESTIC PRODUCT WHICH ARE TO BE RELEASED NEXT WEEK OTHER FACTORS HOWEVER SUCH AS HOUSING STARTS AND INVENTORIES FOR MARCH WHICH HAVE YET TO BE RELEASED WILL ALSO BE FACTORED INTO THE GDP FIGURES AND COULD BRIGHTEN THE ECONOMIC PICTURE A LITTLE THE TRADE DEFICIT HAS DETERIORATED IN RECENT MONTHS PARTLY BECAUSE THE US ECONOMY IS STRENGTHENING WHILE MANY OTHERS ARE STILL IN A SLUMP BUT ANOTHER REASON MAY BE PROBLEMS WITH THE COMMERCE DEPARTMENT'S SEASONAL ADJUSTMENTS MR HORRIGAN SAID THAT IN THE PAST FOUR YEARS STRONG EXPORT GROWTH IN THE FOURTH QUARTER HAS BEEN FOLLOWED BY WEAKER GROWTH OR DECLINES IN THE FIRST QUARTER OF THE FOLLOWING YEAR IN THE LAST QUARTER OF 1993 FOR INSTANCE EXPORTS GREW AT A SEASONALLY ADJUSTED ANNUAL RATE OF 167 ALTHOUGH THE FINAL FIGURES AREN'T IN MR HORRIGAN SAID A BESTCASE SCENARIO WILL SHOW EXPORTS TUMBLED AT A 20 ANNUAL RATE IN THE FIRST QUARTER THAT SUGGESTS THERE ARE SOME PROBLEMS WITH THE SEASONALS HE SAID HE ARGUED THAT SUCH LARGE SWINGS PROBABLY WOULDN'T OCCUR IF THE SEASONAL ADJUSTMENTS WERE WORKING PROPERLY LARGE DECLINES IN AIRCRAFT SEMICONDUCTORS CHEMICALS AND PHARMACEUTICALS ACCOUNTED FOR MOST OF THE DECLINE IN EXPORTS DURING FEBRUARY IMPORTS WERE DRIVEN HIGHER BY INDUSTRIAL SUPPLIES AND MATERIALS CARS AND OTHER CONSUMER GOODS AS USUAL THE LARGEST DEFICIT THE US HAD DURING THE MONTH WAS WITH JAPAN AT 463 BILLION THE US ALSO RAN A 166 BILLION DEFICIT WITH CHINA ALL FIGURES ARE SEASONALLY ADJUSTED EXCEPT FOR INDIVIDUAL COUNTRIES 9404200174 940420 TECHNOLOGY AND HEALTH PACIFIC TELESIS AND GTE POST STRONGER RESULTS BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL PACIFIC TELESIS GROUP REPORTED A FIRSTQUARTER PROFIT COMPARED WITH A YEARAGO LOSS WHICH INCLUDED RESTRUCTURING AND ACCOUNTING CHARGES GTE CORP SAID ITS QUARTERLY PROFIT ROSE MORE THAN 10 PACIFIC TELESIS BASED IN SAN FRANCISCO REPORTED A PROFIT OF 305 MILLION OR 72 CENTS A SHARE COMPARED WITH A YEARAGO LOSS OF 173 BILLION OR 425 A SHARE BOTH PERIODS INCLUDED ONETIME ITEMS AS WELL AS RESULTS FROM ITS CELLULAR PAGING AND INTERNATIONAL BUSINESSES WHICH WERE SPUN OFF AS A NEW COMPANY AIRTOUCH COMMUNICATIONS BUT THE YEARAGO QUARTER ALSO CARRIED CHARGES OF 413 MILLION FOR RESTRUCTURING AND 172 BILLION FOR THE CUMULATIVE EFFECT OF ACCOUNTING CHANGES WITHOUT ONETIME ITEMS THE REGIONAL PHONE COMPANY SAID ITS NET INCOME WOULD HAVE TOTALED 289 MILLION OR 68 CENTS A SHARE UP FROM 264 MILLION OR 64 CENTS A SHARE REVENUE ROSE SLIGHTLY TO 229 BILLION REFLECTING GROWTH IN ACCESS LINES AND MINUTES OF USE TWO COMMON BAROMETERS FOR PHONE COMPANIES' PERFORMANCE ACCESS LINES GREW A MODERATE 23 TO 15 MILLION FROM 146 MILLION THE COMPANY ACKNOWLEDGING THAT IT FACED A TOUGH ECONOMY AND TOUGH COMPETITION IN THE CALIFORNIA AREA SAID IT HOPED TO BENEFIT FROM STRINGENT COSTCONTROL EFFORTS GTE A TELECOMMUNICATIONS COMPANY BASED IN STAMFORD CONN REPORTED PROFIT OF 504 MILLION OR 52 CENTS A SHARE UP FROM 460 MILLION OR 48 CENTS A SHARE IN THE FIRST QUARTER LAST YEAR REVENUE SLID 17 TO 475 BILLION FROM 483 BILLION THE YEARAGO FIGURE INCLUDED 86 MILLION OF REVENUE FROM TELEPHONE PROPERTIES SINCE SOLD GTE'S ACCESS LINES ROSE 43 WHICH IS HIGHER THAN THE INDUSTRY AVERAGE EVEN THOUGH OVERALL RESULTS ALSO WERE HAMPERED BY THE SLUGGISH CALIFORNIA ECONOMY GTE'S OPERATIONS IN THE SUN BELT NOTABLY TEXAS AND FLORIDA REGISTERED GAINS A SPOKESMAN SAID THE COMPANY'S CELLULAR BUSINESS ADDED 140000 CUSTOMERS IN THE QUARTER BRINGING TOTAL SUBSCRIBERS TO MORE THAN 17 MILLION SEPARATELY STANDARD & POOR'S RATINGS GROUP SAID IT LOWERED ITS RATING ON GTE NORTHWEST INC'S SENIOR SECURED DEBT AND PREFERRED STOCK TO SINGLEAPLUS FROM DOUBLEAMINUS AND COMMERCIAL PAPER TO A1 FROM A1PLUS THE GTE UNIT HAS ABOUT 475 MILLION OF RATED SENIOR SECURED DEBT OUTSTANDING S&P CITED THE EROSION IN FINANCIAL MEASURES OF CREDIT PROTECTION AND THE COMPANY'S RISING EXPOSURE TO COMPETITIVE PRESSURE GTE'S SHARES CLOSED AT 31625 UP 150 WHILE PACIFIC TELESIS CLOSED AT 31 DOWN 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9404200173 940420 TEXAS JOURNAL ECONOMIC FOCUS THE HOUSTONIANS' SUBURB OF CHOICE IT'S FORT BEND BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL CHECK JUST ABOUT ANY TOP 10 LIST AND YOU WILL FIND FORT BEND COUNTY THE BEST SPOT FOR MANUFACTURING IN THE US A GROUP OF REALESTATE EXECUTIVES RANKED FORT BEND AT NO 2 THE FASTESTGROWING WHITECOLLAR ADDRESS NO 3 IN THE NATION ACCORDING TO AMERICAN DEMOGRAPHICS MAGAZINE HOW ABOUT FAMILY VALUES FORT BEND HAS THE EIGHTHHIGHEST PERCENTAGE OF TRADITIONAL FAMILIES IN THE COUNTRY SAYS THE US CENSUS BUREAU YOU CAN KEEP THIS UP FOR QUITE A WHILE FORT BEND HAS THE NATION'S NINTH MOST DIVERSE POPULATION IT HAS THE LOWEST DROPOUT RATE IN THE SIXCOUNTY HOUSTON METROPOLITAN AREA AND A COLLEGEEDUCATION RATE THAT IS 49 HIGHER THAN THE US AND TEXAS AVERAGES CONVINCED YET AMID THE SEDENTARY ECONOMY OF HOUSTON AND THE SMOKESTACKS AND REFINERIES OF MUCH OF THE GULF COAST FORT BEND COUNTY HAS EMERGED AS A UTOPIA OF SORTS AN UNHERALDED CENTER OF EXPLOSIVE GROWTH A MAGNET FOR EDUCATED NONUNION ETHNICALLY DIVERSE WORKERS WHO OWN THEIR HOMES EARN HIGHERTHANAVERAGE INCOMES AND LIVE IN NUCLEAR FAMILIES IT IS A PROSPERITY THAT THIS COUNTY OF 245000 OWES IN LARGE PART TO ITS CRIMERIDDEN TRAFFICLADEN NEIGHBOR TO THE NORTHTHE CITY OF HOUSTON THE CITY'S BEST AND BRIGHTEST LIKE THEIR COUNTERPARTS THROUGHOUT THE NATION ARE FLOCKING TO THE SUBURBS AND FOR MANY FORT BEND COUNTY IS THE SUBURB OF CHOICE INDEED FROM 1980 TO 1992 FORT BEND COUNTY'S POPULATION GREW AT AN AVERAGE ANNUAL RATE OF 54 THAT COMPARES WITH A RATE OF 18 FOR ALL OF TEXAS AND JUST 04 FOR HOUSTON THIS IS A THREAT TO THE VIABILITY OF HARRIS COUNTY AND OF HOUSTON ITSELF SAYS JARED HAZLETON DIRECTOR OF THE CENTER FOR BUSINESS AND ECONOMIC ANALYSIS AT TEXAS A&M UNIVERSITY THE PROPERTYTAX BASE SHRINKS AND THEN THE SERVICES SHRINK AND THAT CAUSES MORE PEOPLE TO MOVE OUT HOUSTON OFFICIALS ARE QUICK TO COUNTER THAT FORT BEND HAS THE PERCENTAGES ON ITS SIDE BECAUSE IT'S STARTING FROM SUCH A SMALL BASE EVEN SO SINCE 1980 FORT BEND GREW BY 117780 RESIDENTS 40 MORE THAN THE 84297 INCREASE POSTED BY HOUSTON THE INVASION HAS TURNED FORT BEND'S FARMLAND INTO MASTERPLANNED COMMUNITIES BIG NAMES LIKE GERALD HINES AND AMERICAN GENERAL CORP ARE BUILDING PRISTINE RESIDENTIAL RETAIL AND OFFICE CENTERS BRINGING A SENSE OF ORDER THAT CONTRASTS SHARPLY WITH NEARBY HOUSTON'S UNZONED HODGEPODGE DEVELOPMENT IF YOU HAVE A VERY NICE COMMUNITY PEOPLE WILL COME TO IT SAYS HERBERT W APPEL JR PRESIDENT OF THE GREATER FORT BEND ECONOMIC DEVELOPMENT COUNCIL AND LEST THEY BE ACCUSED OF REPRESENTING JUST ANOTHER WHITEFLIGHT SUBURB FORT BEND OFFICIALS ARE ARMED WITH CENSUS BUREAU DATA NAMING THE COUNTY ONE OF THE MOST ETHNICALLY DIVERSE IN THE COUNTRY 54 WHITE 21 BLACK 19 HISPANIC AND 6 ASIAN CREDIT MUCH OF FORT BEND'S DIVERSITY TO THE OIL RECESSION OF THE 1980S WHEN THE BOTTOM FELL OUT OF THE HOUSTONAREA ECONOMY THE SNAZZY PLANNED DEVELOPMENTS SOUTHWEST OF THE CITY SUDDENLY BECAME AFFORDABLE TO MORE PEOPLE IF YOU WANT YOUR CITY TO BE INTEGRATED JUST HAVE A HUGE RECESSION SAYS AL BALLINGER ECONOMICS DATA MANAGER FOR THE UNIVERSITY OF HOUSTON CENTER FOR PUBLIC POLICY AND A RESIDENT OF FORT BEND COUNTY TO A LARGE EXTENT IT'S A REALESTATE PRICING PHENOMENON HOUSING BECAME VERY AFFORDABLE FOR MINORITIES WHO ARE TRADITIONALLY KEPT OUT OF CERTAIN AREAS BUT BEFORE ANYONE STARTS TRUMPETING FORT BEND AS THE FEELGOOD COUNTY OF THE FUTURE IT SHOULD BE NOTED THAT THE VARIOUS ETHNIC GROUPS HAVE CONGREGATED IN SEPARATE POCKETS THROUGHOUT THE COUNTY AND MANY PARTS REMAIN SEGREGATED THE NUMBERS MAKE IT SOUND LIKE EVERY THIRD HOUSE IS OWNED BY A BLACK BUT THAT'S NOT THE WAY IT IS MR BALLINGER SAYS ONE OTHER POINT WORTH MENTIONING FORT BEND COUNTY ISN'T JUST ANOTHER BEDROOM COMMUNITY ITS RESIDENTS TRUDGING OFF TO WORK IN THE BIG CITY EVERY DAY ALTHOUGH 46 OF COUNTY RESIDENTS STILL WORK OUTSIDE THE AREA INCREASING NUMBERS OF PEOPLE ARE FINDING JOBS NEAR HOME THIS MONTH PRUDENTIAL INSURANCE CO OF AMERICA NEWARK NJ BEGAN CLOSING REGIONAL OFFICES IN HOUSTON AND MOVING AS MANY AS 1300 JOBS TO SUGARLAND IN FORT BEND JUST THIS WEEK MAKITA USA INC A CERRITOS CALIF HANDTOOL AND POWERTOOL MAKER IS EXPECTED TO ANNOUNCE A NEW DISTRIBUTION CENTER IN FORT BEND COUNTY BRINGING WITH IT ABOUT 40 JOBS AND LOS ANGELESBASED UNOCAL CORP THE OIL AND GAS COMPANY ALSO HAS MOVED 700 JOBS TO FORT BEND COUNTY INCLUDING 200 FROM HOUSTON NEVERTHELESS HOUSTON REMAINS THE REGION'S ECONOMIC ENGINE AND FORT BEND COUNTY OFFICIALS SAY THEY ARE WELL AWARE OF THEIR ECONOMIC DEPENDENCE ON THE BAYOU CITY ALL OF OUR EGGS ARE IN THE SAME BASKET SAYS CLIFF TERRELL EXECUTIVE VICE PRESIDENT OF THE RICHMOND/ROSENBERG AREA CHAMBER OF COMMERCE IT'S TO OUR BEST BENEFIT TO BE COOPERATIVE WITH THE ENTIRE HOUSTON REGION 9404200172 940420 WESTMORELAND COAL'S AUDITOR CASTS DOUBTS ON COMPANY'S FUTURE PHILADELPHIA WESTMORELAND COAL CO A PHILADELPHIA MINING AND ENERGY CONCERN SAID ITS AUDITOR RAISED DOUBTS ABOUT THE COMPANY'S ABILITY TO CONTINUE AS A GOING CONCERN THE AUDITOR KPMG PEAT MARWICK CITED LOSSES AT THE COMPANY'S EASTERN COAL OPERATIONS CASHFLOW PROBLEMS RESULTING FROM THE RECLASSIFICATION OF SOME DEBTS AS CURRENT LIABILITIES AND COVENANT VIOLATIONS IN WESTMORELAND'S PRINCIPAL CREDIT ARRANGEMENTS WESTMORELAND SAID IT IS NEGOTIATING WITH LENDERS TO AMEND OR RESTRUCTURE CREDIT LINES OF 50 MILLION TO HELP REDUCE 46 MILLION OF MATURING CREDIT OBLIGATIONS THE COMPANY SAID IT AGREED TO SELL THE ASSETS OF WESTMORELAND ENERGY INC A POWER SUBSIDIARY BASED IN CHARLOTTESVILLE VA FOR 50 MILLION THE BUYERS ARE A CONSORTIUM REPRESENTED BY LCRW POWER CO LP WESTMORELAND HAD ANNOUNCED THAT IT WAS CONSIDERING AN ASSET SALE WHEN IT REPORTED WIDENED FOURTHQUARTER LOSSES LAST YEAR THE COMPANY SAID YESTERDAY IT IS ALSO CONSIDERING SELLING ITS EASTERN COAL PROPERTIES WESTMORELAND SHARES WHICH CLOSED MONDAY AT 475 A SHARE DIDN'T OPEN FOR TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE 9404200171 940420 TREASURY TO OFFER BILLS IN AUCTION ON MONDAY WASHINGTON THE TREASURY PLANS TO PAY DOWN 298 BILLION ON THE PUBLIC DEBT WITH THE SALE MONDAY OF ABOUT 228 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 2578 BILLION THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON JULY 28 1994 AND OCT 27 1994 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794L51 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794N75 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9404200170 940420 INTERNATIONAL CITICORP EXPECTS FINE BY INDIAN REGULATORS OVER SCANDAL IN 1992 SPECIAL TO THE WALL STREET JOURNAL WASHINGTON CITICORP EXPECTS TO BE FINED BY BANK REGULATORS IN INDIA FOR ITS INVOLVEMENT IN A SECURITIES SCANDAL THAT LED TO THE CRASH OF THE BOMBAY STOCK MARKET IN 1992 A SPOKESMAN FOR THE NEW YORK COMPANY DECLINED TO ELABORATE ON THE SIZE OF THE EXPECTED FINE WHICH WAS DISCLOSED IN THE COMPANY'S ANNUAL REPORT FILED LAST MONTH WITH THE SECURITIES AND EXCHANGE COMMISSION CITICORP THREE OTHER MAJOR MULTINATIONAL BANKS AND SEVERAL INDIAN BANKS HAVE BEEN UNDER INVESTIGATION FOR TWO YEARS CITICORP'S REPORT CONTAINS THE FIRST ADMISSION THAT THE BANKING GIANT EXPECTS TO BE FINED AS A RESULT OF THE INDIA SCANDAL IT'S NOT YET BEING MADE CLEAR TO THE BANKS WHAT KIND OF PENALTY OR THE LEVEL OF THE MONETARY PENALTY THAT WOULD BE IMPOSED A CITICORP SPOKESMAN SAID THE FILING SAID HOWEVER THAT ANY SUCH FINES ARE NOT EXPECTED TO HAVE A MATERIAL EFFECT ON CITICORP'S RESULTS THE FOREIGN AND LOCAL BANKS ARE ACCUSED OF MISREPORTING MILLIONS OF DOLLARS AND ILLEGALLY DIVERTING GOVERNMENT BONDS TO MAKE FUNDS AVAILABLE TO SELECTED STOCKBROKERS FOR QUICK SPECULATION THE IMPROPER TRANSACTIONS WERE A FACTOR IN THE APRIL 1992 CRASH OF THE BOMBAY STOCK MARKET IN WHICH MILLIONS OF MIDDLECLASS INVESTORS WHO HAD INVESTED THEIR LIFE SAVINGS LOST HEAVILY THE INDIA MARKET SCANDAL LED CITICORP TO TAKE A 64 MILLION PRETAX CHARGE LAST YEAR WHICH THE BANK SAID WAS RELATED TO ITS WITHDRAWAL FROM THE STOCKPORTFOLIOMANAGEMENT BUSINESS FOR CUSTOMERS IN INDIA 9404200169 940420 YIELDS ROSE ON CDS IN THE LATEST WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS ROSE IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS EDGED UP TO 316 FROM 313 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS ROSE TO 494 FROM 491 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS ROSE TO 368 FROM 363 WHILE THE AVERAGE FOR FIVEYEAR BROKERSOLD CDS ROSE TO 545 FROM 537 BANXQUOTE SAID ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON SIXMONTH CERTIFICATES INCREASED TO 346 FROM 335 ON FIVEYEAR JUMBOS THE AVERAGE ROSE TO 545 FROM 534 ACCORDING TO BANXQUOTE 9404200168 940420 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB LAST WEEKEND WAS A WEEKEND OF GUNS FOR PRESIDENT CLINTON GUNS IN BOSNIA AND GUNS IN CHICAGO IN BOSNIA THE PRESIDENT'S POLICY TURNED INTO A SHAMBLES AND AN EMBARRASSMENT IN CHICAGO THE PRESIDENT SHOWED THAT HE'S CAPABLE OF ANTICIPATING A PROBLEM AND MOVING DECISIVELY TO ADDRESS IT ON THE GRAND SCALE OF HISTORY THESE TWO PROBLEMS ARE HARDLY EQUAL BOSNIA WEIGHS FAR HEAVIER STILL THE CONTRAST IN THE PRESIDENT'S HANDLING OF THESE TWO ISSUES ONE FOREIGN AND ONE DOMESTIC IS TELLING IN FACT THE SAGA OF LAST WEEKEND SUGGESTS THE PRESIDENT'S TROUBLES IN FOREIGN POLICY STEM NOT FROM SOME ISOLATED FACTOR OR STAFF FAILING BUT RATHER GROW OUT OF THE VERY NATURE OF THE CLINTON PRESIDENCY BOTH AT HOME AND ABROAD THE ISSUE LAST WEEKEND WAS HOW TO GET GUNS OUT OF THE HANDS OF THOSE WREAKING HAVOC IN CHICAGO CITY OFFICIALS HAD BEEN CONDUCTING IMPROMPTU SEARCHES OF PUBLIC HOUSING APARTMENTS TO CONFISCATE THE GUN CACHES OF DRUG GANGS THE SEARCHES FOCUSED ON THE ROBERT TAYLOR HOMES A PUBLIC HOUSING PROJECT THAT HAS BECOME A LETHAL DRUGWAR BATTLEFIELD WHERE THE INNOCENT QUAKE THE POLICE SWEEPS WERE CHALLENGED IN COURT BY SOME TENANTS SUPPORTED BY THE AMERICAN CIVIL LIBERTIES UNION WELL BEFORE A FEDERAL JUDGE HAD RULED ON THAT CHALLENGE THOUGH RAHM EMMANUEL A WHITE HOUSE AIDE WORKING ON CRIME MATTERS SUGGESTED AT A SENIOR STAFF MEETING THAT THE ADMINISTRATION FIGURE OUT A WAY TO QUICKLY COUNTER A DECISION THAT BLOCKED THE SEARCHES THE SUGGESTION WAS PICKED UP BY WHITE HOUSE COUNSEL LLOYD CUTLER AND DOMESTIC POLICY AIDE CAROL RASCO AND ULTIMATELY BY THE PRESIDENT HIMSELF ON APRIL 7 JUDGE WAYNE ANDERSEN DID INDEED RULE THAT THE SEARCHES WERE UNCONSTITUTIONAL WITHIN AN HOUR AIDES SAY MR CLINTON WAS ON THE PHONE TO ATTORNEY GENERAL JANET RENO AND HOUSING AND URBAN DEVELOPMENT SECRETARY HENRY CISNEROS TELLING THEM TO QUICKLY CONSTRUCT A STRATEGY TO HELP CITIES CONDUCT CONSTITUTIONALLY ACCEPTABLE WEAPONS SEARCHES THE WHITE HOUSE DECLARED THAT THE PRESIDENT HAD ORDERED JUSTICE AND HUD TO FIND A SOLUTION ORDERED NOT ASKED LEST THE BUREAUCRACY MISS THE POINT LAST SATURDAY NINE DAYS LATER MR CLINTON ANNOUNCED A PACKAGE OF FEDERALLY SUPPORTED GUIDELINES THAT LOCAL HOUSING AUTHORITIES CAN USE TO SEARCH FOR WEAPONS IN AND AROUND PUBLIC HOUSING IN BOSNIA THE WEEKEND WAS ONE OF HESITATION AND OPPORTUNITIES LOST JUST DAYS EARLIER AS SERBIAN FIGHTERS THREATENED TO OVERRUN THE MUSLIM SAFE HAVEN OF GORAZDE THE ADMINISTRATION VIRTUALLY INVITED THE UN TO CALL IN US BOMBERS TO STOP THE SERBIAN ADVANCE ON AN INTERNATIONALLY PROTECTED CITY TWO SMALL BOMBING RAIDS WERE CONDUCTED AND THE SERBIAN GUNS FELL SILENT MANY PEOPLE CONCLUDED THAT THE ADMINISTRATION HAD CROSSED A DIVIDE TO A NEW BOSNIAN POLICY ONE IN WHICH SERBIANS WOULD KNOW THAT DEFIANCE OF THE UN WOULD PRODUCE QUICK MILITARY REPRISALS FROM THE WEST BUT THAT WASN'T THE CASE WHEN THE SERBIANS RESUMED MOVING ON GORAZDE THE US DIDN'T PUSH FOR A SIGNIFICANT MILITARY RESPONSE FROM THE WEST THERE WAS LITTLE SIGN OF THE EARLIER RESOLVE GORAZDE ALL BUT FELL TO ACKNOWLEDGE THE OBVIOUS BOSNIA'S GUNS ARE A LOT BIGGER AND IMMENSELY HARDER TO REACH THAN CHICAGO'S STILL THE QUESTION ARISES WHY IS IT SO HARD TO GET THE SAME LEVEL OF DECISIVENESS ON FOREIGN AND DOMESTIC POLICY THE ANSWER SEEMS TO LIE BOTH IN MR CLINTON AND THE NATURE OF THE COUNTRY HE SERVES TODAY WHATEVER ONE THINKS OF THE PRESIDENT'S DOMESTIC POLICY VIEWS NOBODY DOUBTS THAT HE IS KNOWLEDGEABLE ENOUGH TO WEAVE HIS WAY THROUGH ANY DEBATE CHICAGO IS A CLASSIC CASE MR CLINTON HAD VISITED CHICAGO'S HOUSING PROJECTS LONG BEFORE HE BECAME PRESIDENT HE KNOWS VINCENT LANE THE DIRECTOR OF THE CHICAGO HOUSING AUTHORITY AND THE DRIVING FORCE BEHIND THE EFFORT TO RID THE HOUSING PROJECTS OF GUNS AND DRUGS MR CLINTON SEEMS TO KNOW EXACTLY WHAT HE THINKS ABOUT POLICE SWEEPS IN THOSE PROJECTS THERE'S LITTLE SIGN OF SUCH CERTITUDE ON FOREIGN AFFAIRS BUT THERE'S A MUCH BROADER FACTOR AT WORK ON FOREIGN POLICY AS ON SO MANY ISSUES THE CLINTON ADMINISTRATION SEEMS TO REFLECT THE MOOD OF THE PUBLIC AS CLOSELY AS POSSIBLE AMERICANS CARE ENOUGH ABOUT THE HUMANITARIAN TRAGEDY IN BOSNIA AND ABOUT AMERICA'S WORLD LEADERSHIP ROLE NOT TO TURN AWAY ENTIRELY THEY EVEN CARE ENOUGH TO MOUNT A COUPLE OF AIR STRIKES BUT THEY DON'T CARE ENOUGH TO ENDURE SUSTAINED MILITARY ACTION AND CERTAINLY NOT ENOUGH TO INSERT US TROOPS A PRESIDENT PATRICK BUCHANAN WOULD BE SURE HE WANTED NO PART OF MILITARY ACTION IN BOSNIA A PRESIDENT RICHARD LUGAR WOULD BE SURE BOSNIA WAS IMPORTANT ENOUGH TO RISK DEEPER INVOLVEMENT PRESIDENT CLINTON LIKE THE NATION THAT ELECTED HIM ISN'T SURE OF EITHER ULTIMATELY THOUGH A PRESIDENT'S TASK ISN'T ONLY TO REFLECT PUBLIC SENTIMENT ON SUCH MATTERS BUT TO SHAPE IT 9404200167 940420 WHO'S NEWS GENERAL ELECTRIC CO GENERAL ELECTRIC CO FAIRFIELD CONN WALKER LEWIS WAS NAMED TO THE NEWLY CREATED POSITION OF MANAGING DIRECTOR STRATEGIC SERVICES AT KIDDER PEABODY & CO THE INVESTMENT BANKING AND BROKERAGE FIRM SUBSIDIARY OF THIS ELECTRICAL AND INDUSTRIAL PRODUCTS FINANCIAL SERVICES AND BROADCASTING CONCERN MR LEWIS 49 YEARS OLD WAS MOST RECENTLY PRESIDENT OF AN AVON PRODUCTS INC SUBSIDIARY 9404200166 940420 WHO'S NEWS HARTFORD STEAM BOILER INSPECTION & INSURANCE CO HARTFORD STEAM BOILER INSPECTION & INSURANCE CO HARTFORD CONN GORDON W KREH 46 YEARS OLD PRESIDENT OF THE INSURANCE AND ENGINEERING CONSULTING CONCERN WAS NAMED TO THE ADDED POSITION OF CHIEF EXECUTIVE OFFICER HE SUCCEEDS WILSON WILDE 66 WHO RESIGNED AS CHIEF EXECUTIVE AND CHAIRMAN EFFECTIVE YESTERDAY MR WILDE PLANS TO RETIRE AS A COMPANY EMPLOYEE ON MAY 1 BUT WILL CONTINUE AS CHAIRMAN OF THE EXECUTIVE COMMITTEE OF THE BOARD A SPOKESMAN SAID THE COMPANY DOESN'T PLAN TO NAME A NEW CHAIRMAN 9404200165 940420 TEXAS JOURNAL MINTS ON PILLOWS WELL HOW ABOUT A PLASTIC CUP BY CALEB SOLOMON HOUSTON LOOKING FOR A FUNFILLED VACATION TO THIS HIPHOP TOURIST TOWN HERE'S ONE WITH HOTEL AIR FARE RENTAL CAR TONGUE DEPRESSORS AND URINALYSIS INCLUDED THAT'S THE PACKAGE HERMANN HOSPITAL IS OFFERING TO MEXICAN BUSINESS EXECUTIVES WHO MIGHT WANT TO COMBINE AN ANNUAL PHYSICAL WITH A TRIP UP NORTH WE'RE TRYING TO BUILD OUR INTERNATIONAL BUSINESS SAYS VIVIAN ROSE ADMINISTRATIVE DIRECTOR IN THE NONPROFIT HOSPITAL'S BUSINESS DEVELOPMENT OFFICE SINCE HERMANN STARTED THE TRAVEL PACKAGE LAST YEAR ABOUT 20 MEXICAN PATIENTS HAVE SIGNED ON BUT THE HOSPITAL SEES HUGE POTENTIAL AFTER ALL NEARLY HALF OF THE 1000 INTERNATIONAL PATIENTS THE HOSPITAL TREATED IN THE FISCAL YEAR ENDED LAST OCTOBER CAME FROM MEXICO AND THE HOSPITAL HOPES TO ATTRACT PEOPLE WHO ARE PLANNING TO VACATION HERE ANYWAY AND DECIDE TO THROW IN A PHYSICAL AS PART OF THEIR TRIP THE HOSPITAL CURRENTLY MARKETS THE TRAVEL PACKAGE THROUGH THREE HOTELS WHICH IN TURN LOOK TO MEXICAN TRAVEL AGENTS TO PROMOTE THEM A MEXICO CITY TRAVEL FIRM OPERA DORA TRESS MARES FOR INSTANCE IS TRYING TO DRUM UP BUSINESS WITH HUMAN RESOURCES OFFICES AT THE CITY'S BIG COMPANIES THEY GET BETTER CARE HERE SAYS TINA GREAM SALES MANAGER AT WYNDHAM WARWICK HOTEL ONE OF THE PARTICIPATING HOTELS A HERMANN PACKAGE AT THE WARWICK INCLUDING ROUNDTRIP TRAVEL FROM MEXICO CITY ON CONTINENTAL AIRLINES ONE NIGHT'S STAY A CAR AND THE STANDARD PHYSICAL INCLUDING BASIC BLOOD URINE AND CHOLESTEROL TESTS AS WELL AS A MEDICAL HISTORY COSTS 584 BUYING THE TRAVEL COMPONENTS ON THEIR OWN WITHOUT THE PHYSICAL EXAM COULD COST THAT MUCH THE DELUXE PHYSICAL WHICH INCLUDES A PULMONARY EXAM AND ELECTROCARDIOGRAM AS WELL AS A RUN ON A TREADMILL WITH THE SAME TRAVEL ARRANGEMENTS COSTS 1898 THROUGH THE WARWICK WANT SOMEONE ALONG TO HOLD YOUR HAND IN CASE THERE'S BAD NEWS A COMPANION GETS AIR FARE AND LODGING BUT NOT A PHYSICAL FOR ANOTHER 299 9404200164 940420 INTERNATIONAL RULING COALITION IN JAPAN SQUABBLES OVER TAX POLICY BY MASAYOSHI KANABAYASHI AND MICHAEL WILLIAMS STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO THE CONSERVATIVE AND SOCIALIST WINGS OF JAPAN'S RULING COALITION BATTLED OVER TAX POLICY DELAYING AGAIN THE NAMING OF A NEW PRIME MINISTER THE OUTCOME OF THE TAX DEBATE MAY DETERMINE THE FATE OF THE COALITION GOVERNMENT A RICKETY ALLIANCE OF SEVEN PARTIES THE GROUPS ARE EXPECTED TO NOMINATE FOREIGN MINISTER TSUTOMU HATA TO SUCCEED OUTGOING PREMIER MORIHIRO HOSOKAWA PERHAPS AS SOON AS WEDNESDAY MR HATA'S HAND WAS STRENGTHENED TUESDAY WHEN CONSERVATIVE POWER BROKER MICHIO WATANABE WITHDREW HIS CANDIDACY BUT THE COALITION'S FAILURE TO SETTLE ON A POLICY PLATFORM HAS PUT EVERYTHING ON HOLD THE ALLURE OF A DETAILED AGREEMENT ON TAXES IS THAT IT COULD PRODUCE A GOVERNMENT MORE STABLE THAN ITS PREDECESSOR ONE THAT COULD PURSUE DEREGULATION AND OTHER REFORMS PROMISED TO THE ELECTORATE AND TO JAPAN'S TRADING PARTNERS BUT IF THE GROUPS SIMPLY PAPER OVER THEIR DIFFERENCES THE NEXT CABINET COULD PROVE TO BE A LAMEDUCK ADMINISTRATION THAT WILL LEGISLATE A BUDGET AND EXPIRE SOON THEREAFTER SUCH A FAILURE WOULD HASTEN THE FRAGMENTATION OF JAPAN'S POLITICALPARTY SYSTEM AND COULD FORCE NEW ELECTIONS IF THE POINT IS LEFT AMBIGUOUS MR HATA'S LIFE AS PRIME MINISTER WOULD BE SHORT SAID POLITICAL ANALYST TAKAYOSHI MIYAGAWA POLITICIANS ARE UNDER THE GUN TO AGREE ON A TAX SETTLEMENT BY THE JULY SUMMIT OF LEADING INDUSTRIAL NATIONS JAPAN HAS PROMISED THE US A MULTIYEAR TAX CUT AS A WAY OF STIMULATING ITS SLUGGISH ECONOMY AND HENCE ITS APPETITE FOR IMPORTS THE TAX CONTROVERSY ISN'T NEW IT NEARLY SPLIT THE COALITION IN FEBRUARY PRIME MINISTER MORIHIRO HOSOKAWA PROPOSED CUTTING INCOME TAXES BY SIX TRILLION YEN 582 BILLION BEGINNING THIS YEAR TO BE OFFSET STARTING IN 1997 BY A BOOST IN JAPAN'S NATIONAL SALES TAX TO 7 FROM THE CURRENT 3 RATE MR HOSOKAWA HAD TO RETRACT THE PLAN BECAUSE OF OPPOSITION FROM WITHIN THE COALITION IN A COMPROMISE JAPAN LEGISLATED A 547 TRILLION YEN INCOME TAX CUT FOR THIS YEAR ALONE THE RESULT PLEASED NO ONE PARTICULARLY NOT THE US GOVERNMENT JAPANESE OFFICIALS HAVE TRIED TO ASSURE THE WORLD THAT LEGISLATORS ARE CERTAIN TO PASS A PERMANENT TAX CUT BUT AS THE CURRENT BICKERING DEMONSTRATES THE TAX DEBATE ISN'T OVER YET 9404200163 940420 WHO'S NEWS MCI COMMUNICATIONS CORP MCI COMMUNICATIONS CORP WASHINGTON MARIANNE GEEKER WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT OF THE LITIGATION GROUP AT THIS TELECOMMUNICATIONS COMPANY PREVIOUSLY MS GEEKER 47 YEARS OLD WAS ASSISTANT GENERAL COUNSEL AND DIRECTOR OF THE LABOR EMPLOYMENT AND EQUAL EMPLOYMENT OPPORTUNITY GROUPS AT THE COMPANY 9404200162 940420 WHO'S NEWS DPL INC DPL INC DAYTON OHIO DAVID R HOLMES 48 YEARS OLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF REYNOLDS & REYNOLDS CO ALSO BASED HERE WAS NAMED A DIRECTOR OF THIS ELECTRIC AND NATURALGAS UTILITY HOLDING COMPANY HE SUCCEEDS ROBERT J KEGERREIS 72 WHO RETIRED AS A DIRECTOR AT THE ANNUAL MEETING MR KEGERREIS HAD BEEN ON DPL'S BOARD FOR 19 YEARS 9404200161 940420 WHO'S NEWS ABEX INC ABEX INC HAMPTON NH RICHARD D POWER 45 YEARS OLD WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS MAKER OF AEROSPACE AND INDUSTRIAL PRODUCTS HE WAS VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF TYCO INTERNATIONAL LTD AT ABEX HE SUCCEEDS PAUL M MEISTER WHO REMAINS A SENIOR VICE PRESIDENT 9404200160 940420 WHO'S NEWS MA HANNA CO MA HANNA CO CLEVELAND LC VAN HOEVEN JR 57 YEARS OLD VICE PRESIDENT AND TREASURER WILL RESIGN FROM THESE POSTS AT THIS SPECIALTY CHEMICALS CONCERN EFFECTIVE APRIL 30 THE COMPANY HAS NOT YET NAMED A SUCCESSOR MR VAN HOEVEN WILL SERVE AS A CONSULTANT AND CONTINUE AS VICE PRESIDENT AND A DIRECTOR OF IRON ORE CO OF CANADA SEPT ILES QUEBEC AN IRON ORE PRODUCER IN WHICH MA HANNA HAS A STAKE HE PLANS TO RETIRE FROM IRON ORE IN MAY 1995 THE COMPANY SAID 9404200159 940420 TEXAS JOURNAL ROSES ARE RED BONNETS ARE BLUE IT WILL NEVER FLY BY SCOTT MCCARTNEY DALLAS PICKING BLUEBONNETS ON THE SIDE OF TEXAS HIGHWAYS IS STRONGLY DISCOURAGED BUT YOU MAY BE ABLE TO BUY THEM IN GROCERY STORES NEXT YEAR RESEARCHERS AT TEXAS A&M UNIVERSITY HAVE BRED A BLUEBONNET THAT HAS LONG LIFE AND LONG STEMS AND COULD BE CULTIVATED AND SOLD BY FLORISTS YEARROUND UNTIL NOW THE BLUEBONNET THE STATE FLOWER WAS TOO SHORT AND TOO SHORTLIVED TO BE A COMMERCIAL PRODUCT WHILE THE NEW VARIETIES MAY NEVER RIVAL ROSES THEY PROMISE TO FILL A GAP IN THE 4 BILLION CUTFLOWER MARKET WHERE BLUE FLOWERS ARE RARE THE POTENTIAL IS GREAT SAYS TOM DAVIS AN A&M PLANT PHYSIOLOGIST WHO EXPECTS A COMMERCIAL VERSION OF THE NEW BLUEBONNETS IN 1995 DR DAVIS AND WAYNE MACKAY AN EL PASOBASED A&M HORTICULTURIST GATHERED UNIQUE TYPES OF BLUEBONNETS IN THE BIG BEND AREA OF WEST TEXAS FOUR YEARS AGO THEY BRED THE PLANTS TO PURIFY COLOR AND CULTIVATE LONG LIFE ISOLATING WHITE AND BRIGHT PINK STRAINS AS WELL AS BLUE AND THEY NOW HAVE BLUEBONNETS WITH STEMS UP TO TWO FEET LONG WE ARE AT THE POINT WHERE WE CAN PROBABLY START WORKING OUT COOPERATIVE AGREEMENTS WITH GROWERS DR DAVIS SAYS BUT WOULD BLUEBONNETS WORK AS A VALENTINE BOUQUET EVEN FOR TEXAS LOVERS THAT'S WHY THE FLORAL INDUSTRY WANTS PINK DR DAVIS SAYS 9404200158 940420 WHO'S NEWS NORTHERN TRUST CORP NORTHERN TRUST CORP CHICAGO DOLORES E CROSS PRESIDENT OF CHICAGO STATE UNIVERSITY WAS NAMED A DIRECTOR OF THIS BANKHOLDING COMPANY SUCCEEDING WILLIAM A POGUE WHO DIDN'T SEEK REELECTION 9404200157 940420 GIBSON GREETINGS SETS AN ADDITIONAL CHARGE FOR THE FIRST QUARTER CINCINNATI GIBSON GREETINGS INC SAID IT INCURRED AN ADDITIONAL CHARGE AGAINST EARNINGS OF 167 MILLION FOR THE FIRST QUARTER AS A RESULT OF UNAUTHORIZED INTERESTRATE SWAPS THE GREETINGCARD AND WRAPPINGPAPER MAKER PREVIOUSLY ANNOUNCED A 3 MILLION LOSS ON UNCAPPED DERIVATIVES AND SHIFTED INTO MORE CONSERVATIVE SWAPS CAPPING ITS REMAINING EXPOSURE AT 245 MILLION DERIVATIVES ARE FINANCIAL INSTRUMENTS WHOSE VALUES ARE DERIVED FROM THE PRICES OF UNDERLYING ASSETS IN THE CASE OF INTERESTRATE SWAPS THE DERIVATIVE IS DESIGNED TO ALLOW ITS HOLDER TO HEDGE AGAINST INTERESTRATE FLUCTUATIONS GIBSON SAID THE 167 MILLION UNREALIZED LOSS IS IN ADDITION TO THE 3 MILLION REALIZED LOSS AND REPRESENTS A NONCASH CHARGE AGAINST INCOME REQUIRED TO MEET ACCOUNTING RULES THAT SUCH TRANSACTIONS BE RECORDED AT CURRENT MARKET VALUE AS OF THE END OF EACH ACCOUNTING PERIOD AS A RESULT THE COMPANY WILL RECOGNIZE A TOTAL LOSS FOR THESE TRANSACTIONS FOR THE FIRST QUARTER OF 197 MILLION OR 122 A SHARE THE COMPANY EMPHASIZED THE ADDITIONAL LOSS MAY NEVER BE REALIZED IN THIS AMOUNT AND DOESN'T REQUIRE CURRENT CASH OUTLAYS THE CURRENT MARKET VALUE OF THE TRANSACTIONS FLUCTUATES DAILY BASED ON MARKET CONDITIONS REVELATIONS ABOUT THE TRANSACTIONS PROMPTED A COMPANY INVESTIGATION THE INDIVIDUALS THAT WERE INVOLVED WITH THE INITIAL SWAPS ARE NO LONGER WITH THE COMPANY SAID WILLIAM L FLAHERTY GIBSON'S CHIEF FINANCIAL OFFICER MR FLAHERTY SAID THE DERIVATIVE PROBLEM WILL PROBABLY INTRODUCE AN ELEMENT OF VOLATILITY IN GIBSON'S FUTURE REPORTED EARNINGS AS A RESULT OF FLUCTUATIONS IN THE VALUE OF THE SWAPS UNTIL THEY MATURE OR ARE CLOSED GIBSON SHIFTED INTO LESS RISKY SWAPS WHICH MATURE IN JUNE AND AUGUST 1995 ON THE NASDAQ STOCK MARKET YESTERDAY GIBSON CLOSED AT 1950 UNCHANGED 9404200156 940420 TECHNOLOGY & HEALTH WARNERLAMBERT MERCK PROFIT ROSE DURING 1ST QUARTER BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL MERCK & CO AND WARNERLAMBERT CO POSTED HIGHER FIRSTQUARTER SALES AND EARNINGS PARTLY THE RESULT OF THEIR AGGRESSIVE ACQUISITION STRATEGIES LAST YEAR AMERICAN HOME PRODUCTS CORP REPORTED SLUGGISH SALES AND EARNINGS GROWTH REFLECTING COMPETITIVE INDUSTRY CONDITIONS PHARMACEUTICAL COMPANIES' EARNINGS ARE MEETING EXPECTATIONS FOR THE FIRST TIME IN A LONG TIME SAID D LARRY SMITH AN ANALYST AT HAMBRECHT & QUIST IN LATE NEW YORK STOCK EXCHANGE TRADING MERCK SHARES WERE 375 CENTS LOWER AT 28375 WARNERLAMBERT SHARES WERE UP 625 CENTS AT 6450 AND AMERICAN HOME PRODUCTS WERE UP 1125 TO 59125 MERCK'S REPORT WAS EAGERLY AWAITED AS THE FIRST GLIMPSE OF THE IMPACT OF ITS ACQUISITION OF MEDCO CONTAINMENT SERVICES INC LAST YEAR ON PERFORMANCE THE ADDITION OF MEDCO'S BUSINESS PUSHED SALES UP 48 TO 351 BILLION FROM 238 BILLION A YEAR AGO EARNINGS ROSE 10 TO 6752 MILLION REFLECTING MEDCO'S LOWER MARGINS EARNINGS PER SHARE WERE FLAT BECAUSE OF THE ADDITIONAL SHARES ISSUED LAST YEAR TO COMPLETE THE MEDCO ACQUISITION WORLDWIDE SALES OF MERCK PHARMACEUTICALS INCREASED 64 BUT THAT INCREASE WAS BOOSTED BY A PROMOTIONAL PROGRAM GIVING WHOLESALERS AND RETAILERS A 6 DISCOUNT AND THE OPPORTUNITY TO STOCK AS MUCH AS SEVENMONTHS' SUPPLY OF MERCK'S HEART DRUG PRINIVIL MERCK SELLS PRINIVIL AS ITS SECOND ACEINHIBITOR DRUG VASOTEC IS THE MAIN PRODUCT AND ALSO LICENSES THE DRUG TO ZENECA A UNIT OF ZENECA GROUP PLC WHICH SELLS IT UNDER THE NAME ZESTRIL ZENECA'S VERSION HAS BEEN AGGRESSIVELY GAINING MARKET SHARE BY DISCOUNTING MR SMITH SAID PRINIVIL SALES IN 1993 WERE 285 MILLION SALES FOR JUST THE QUARTER WERE UP 85 TO 120 MILLION ZESTRIL SALES WERE 615 MILLION IN 1993 MERCK IS ALSO GIVING PHARMACISTS INCENTIVES TO PUSH ITS VERSION MR SMITH SAID IT'S AN ILLUSTRATION OF THE POWER MERCK HAS WITH MEDCO HE ADDED MERCK'S PROGRAM WAS A RESPONSE TO A ZENECA PROGRAM TO INCREASE ITS MARKET SHARE A MERCK SPOKESWOMAN SAID A ZENECA SPOKESMAN SAID THAT BASED ON THE RESPONSE FROM LARGE RETAIL CUSTOMERS TO ITS PROGRAM BEGUN AT THE BEGINNING OF THE YEAR ZESTRIL WILL MEET THE COMPANY'S SALES GOALS AND WON'T BE HURT BY MERCK'S STRATEGY AMERICAN HOME PRODUCTS REPORTED A 36 PROFIT INCREASE ON A SALES INCREASE OF 16 TO 214 BILLION THE COMPANY BLAMED ITS SLUGGISH PERFORMANCE ON COMPETITION IN KEY MARKETS UNFAVORABLE EXCHANGE RATES AND A MILD COLD AND FLU SEASON THIS YEAR PHARMACEUTICAL SALES INCREASED 1 BUT CONSUMER HEALTHCARE PRODUCTS SALES DECLINED 1 THE COMPANY SAID MEDICAL SUPPLIES AND DIAGNOSTICPRODUCTS SALES INCREASED 4 WARNERLAMBERT REPORTED A 45 INCREASE IN EARNINGS ON AN 11 SALES GAIN TO 147 BILLION FROM 133 BILLION A YEAR AGO THE COMPANY ATTRIBUTED THE SALES GAIN TO ITS ACQUISITIONS AND ALLIANCES LAST YEAR 9404200155 940420 WHO'S NEWS WHIRLPOOL CORP WHIRLPOOL CORP BENTON HARBOR MICH ARNOLD G LANGBO 57 YEARS OLD WAS NAMED TO THE BOARD OF THIS HOME APPLIANCE MANUFACTURER MR LANGBO IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF KELLOGG CO BASED IN BATTLE CREEK MICH MR LANGBO FILLS ONE OF TWO VACANCIES REDUCING THE BOARD'S SIZE TO 11 FROM 12 JANICE D STONEY'S TERM EXPIRED AND SHE DIDN'T STAND FOR REELECTION KENNETH J WHALEN STEPPED DOWN BECAUSE HE REACHED THE BOARD'S MANDATORY RETIREMENT AGE OF 70 9404200154 940420 TEXAS JOURNAL HEARD IN TEXAS MANAGERS BELIEVE TRENDS INDICATE HEALTHY FUTURE FOR LIVING CENTERS BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL MANY MONEY MANAGERS THESE DAYS HAVE GOTTEN BULLISH ON OLD AGE NOT THEIR OWN AGING MIND YOU BUT OTHER PEOPLE'S THEY'VE BEEN SNAPPING UP SHARES OF LONGTERM CARE PROVIDERS SUCH AS HOUSTON'S LIVING CENTERS OF AMERICA ONE OF THE COUNTRY'S LARGEST NURSINGHOME CHAINS AND AN EMERGING PLAYER IN THE RAPIDLY GROWING FIELD OF SUBACUTE CARE THEY ARE UPBEAT ON THE STOCK BECAUSE OF SEVERAL COMPELLING SUPPLYANDDEMAND TRENDS THAT POINT TOWARD POSSIBLE EARNINGS MOMENTUM IN THE YEARS AHEAD NOT ONLY IS THE AMERICAN POPULACE BECOMING GRAYER THE FASTESTGROWING SEGMENT OF THE POPULATION IS THE AGE GROUP MOST LIKELY TO NEED NURSINGHOME CARE BUT THE SUPPLY OF NURSINGHOME BEDS IS GETTING TIGHTER AS STATE GOVERNMENTS DEMONSTRATE A RELUCTANCE TO GRANT PERMITS FOR NEW NURSINGHOME CONSTRUCTION OR EXPANSION BECAUSE OF THOSE TRENDS I'M WILDLY ENTHUSIASTIC ABOUT LONGTERM CARE STOCKS SUCH AS LIVING CENTERS SAYS ROD LINAFELTER COPORTFOLIO MANAGER FOR THE BERGER 100 GROWTH FUND IN DENVER THE EXTENT OF HIS ENTHUSIASM BERGER OWNS MORE THAN 360000 LIVING CENTERS SHARES THE DEMOGRAPHICS OF THIS COUNTRY ARE SUCH THAT GROWTH IS JUST ABOUT INEVITABLE HE SAYS OTHERS SHOW SIMILAR SUPPORT AT GT CAPITAL MANAGEMENT SAN FRANCISCO THE GLOBAL HEALTH CARE FUND OWNS MORE THAN 100000 SHARES OF LIVING CENTERS STOCK IN PORTLAND ORE COLUMBIA MANAGEMENT HAS 460000 SHARES DISTRIBUTED BETWEEN SEVERAL INHOUSE FUNDS AND ITS COLUMBIA SPECIAL CAPITALAPPRECIATION FUND BUT OTHERS AREN'T SO ENTHUSIASTIC THEY EXPRESS CONCERN ABOUT LIVING CENTERS' DEPENDENCE ON MEDICAID PATIENTS AND OCCUPANCY RATES THAT ARE BELOW THE NATIONAL AVERAGE FOR THOSE REASONS THE COMPANY'S STOCK DOESN'T COMMAND AN EARNINGS MULTIPLE COMPARABLE TO ITS PEERS BASED ON 1994'S EXPECTED EARNINGS OF 172 A SHARE LIVING CENTERS TRADES AT 175 TIMES EARNINGS NURSING HOME COUNTERPARTS SUCH AS HEALTH CARE & RETIREMENT MANOR CARE AND HORIZON HEALTHCARE BY COMPARISON HAVE EARNINGS MULTIPLES IN EXCESS OF 22 NEVERTHELESS THE COMPANY'S STOCK IS UP ABOUT 40 SINCE NOVEMBER AND IS TRADING NEAR ITS RECORD HIGH CHARLES CLOUGH CHIEF INVESTMENT STRATEGIST AT MERRILL LYNCH IN NEW YORK SAYS LIVING CENTERS' STOCK SHOULD BE GOOD FOR 20 ANNUAL GROWTH AS THE NEED FOR NURSINGHOME SERVICES EXPANDS AND AS HEALTHCARE REFORM STRIVES TO REDUCE MEDICAL COSTS BY MOVING PATIENTS FROM HIGHCOST HOSPITAL SETTINGS INTO LOWERCOST SUBACUTE FACILITIES INDEED MONEY MANAGERS AND BULLISH ANALYSTS SAY HEALTHCARE REFORM IS ONE OF LIVING CENTERS' MOST COMPELLING STRENGTHS ALTHOUGH THE REFORM EFFORT HAS BATTERED STOCKS THROUGHOUT MUCH OF THE MEDICAL AND DRUG INDUSTRY BECAUSE OF ITS FOCUS ON COSTCUTTING MONEY MANAGERS SAY SUCH CONCERNS ARE MISPLACED WHEN IT COMES TO LONGTERM CARE PROVIDERS THIS INDUSTRY IS THE SAFE HAVEN IN MEDICAL CARE REGARDLESS OF THE DETAILS THAT EVENTUALLY COME OUT OF WASHINGTON SAYS JOHN HINDELONG ANALYST AT DONALDSON LUFKIN AND JENRETTE IN NEW YORK WHO GIVES LIVING CENTERS HIS TOP RATING VERY ATTRACTIVE HE SAYS THAT'S BECAUSE NURSING HOMES DON'T HAVE THE HIGHCOST OVERHEAD OF HOSPITALS AND WILL THUS BENEFIT FROM HEALTHCARE REFORM'S QUEST TO KEEP COSTS DOWN NURSING HOMES ARE BECOMING KEY PLAYERS IN SUBACUTE CARE WHICH CATERS TO PATIENTS WHO DON'T REQUIRE INTENSIVE AND EXPENSIVE HOSPITAL CARE YET WHO STILL NEED A HIGHER LEVEL OF CARE THAN IS AVAILABLE AT HOME LIVING CENTERS WITH 242 FACILITIES IN 10 STATES LAST FALL ANNOUNCED IT WILL ROLL OUT ITS FIRST SUBACUTE UNITS CALLED PROGRESSIVE CARE CENTERS AT 10 TO 12 COMPANYOWNED NURSING HOMES THIS YEAR IT HAS LINKED UP WITH LOUISVILLE KYBASED VENCOR A LEADER IN VENTILATOR AND RESPIRATORY THERAPY LIVING CENTERS OVER TIME WILL ADD OTHER SUBACUTE SPECIALTIES SUCH AS INFUSION THERAPY WOUND CARE AND COMPREHENSIVE REHABILITATION LIVING CENTERS ALREADY IS A LEADING PROVIDER OF SPECIALIZED CARE FOR STROKE VICTIMS AND ALZHEIMER'S PATIENTS BUT THE COMPANY'S MEDICAID BUSINESS WORRIES SOME AT LIVING CENTERS MEDICAID ACCOUNTS FOR ABOUT 60 OF THE PATIENT BUSINESS MIX THE PROBLEM WITH MEDICAID IS THAT IT'S THE LOWESTMARGIN BUSINESS IN OPERATING A NURSING HOME MEDICAID TYPICALLY IS ADMINISTERED BY FINANCIALLY STRAPPED STATE GOVERNMENTS AND THEREFORE THE REIMBURSEMENT RATE IS MUCH LOWER THAN MEDICARE OR PRIVATE PAY RATES TYPICAL PROFIT MARGINS FOR MEDICAID ARE ABOUT 8 MEDICARE AND PRIVATE PAY BY CONTRAST GENERATE MARGINS DOUBLE THAT CARL SHERMAN ANALYST AT DILLON READ IN NEW YORK SAYS OF LIVING CENTERS' MEDICAID MIX I'M NOT REAL FOND OF ANYTHING OVER 50 NEVERTHELESS HE FINDS LIVING CENTERS AN INTERESTING STOCK SOME ANALYSTS ALSO NOTE LIVING CENTERS' 83 OCCUPANCY RATE IS SEVEN PERCENTAGE POINTS BELOW THE NATIONAL AVERAGE THE REASON MORE THAN HALF OF THE COMPANY'S FACILITIES ARE LOCATED IN TEXAS WHICH HAS AN OVERSUPPLY OF NURSINGHOME BEDS BUT FOR MANY MONEY MANAGERS AND ANALYSTS THESE ARE SIGNS OF OPPORTUNITY MANY POINT OUT THAT LIVING CENTERS IS THE INDUSTRY'S MOST EFFICIENT PROVIDER OF MEDICAID CARE WHERE THE KEY IS COST CONTROL BERGER'S MR LINAFELTER ALSO NOTES THAT STATE GOVERNMENTS AREN'T FOND OF GRANTING NEW LICENSES FOR NURSING HOMES BECAUSE AN INCREASE IN THE NUMBER OF BEDS ULTIMATELY TRANSLATES INTO AN INCREASE IN THEIR MEDICAID OBLIGATIONS IN FACT TEXAS HAS IMPOSED A MORATORIUM ON NEW MEDICAID BED NURSING HOME CONSTRUCTION OTHER STATES HAVE SIMILAR RESTRICTIONS THEREFORE HAVING SOME CAPACITY MEANS LIVING CENTERS' REVENUES AND EARNINGS WILL GROW AS SUPPLY BECOMES TIGHTER MR LINAFELTER CONTENDS AND THE INCREASING FOCUS ON SUBACUTE AND SPECIALTYCARE UNITS BECAUSE THEY PROVIDE A HIGHER LEVEL OF CARE IS EXPECTED TO BOOST LIVING CENTERS' OVERALL PROFIT MARGIN DON HULTGREN HEALTHCARE ANALYST AT RAYMOND JAMES A ST PETERSBURG FLA BROKERAGE FIRM SAYS LIVING CENTERS IS IMPROVING ITS PATIENT MIX BY INCREASING ITS DEPENDENCE ON MEDICARE AND PRIVATE PAY CUSTOMERS IN THE LATEST QUARTER THE PERCENTAGE OF REVENUE GENERATED BY THE HIGHERMARGIN PATIENTS INCREASED FOUR PERCENTAGE POINTS TO NEARLY 39 OF REVENUE FROM YEAREARLIER LEVELS I CAN SEE THE STOCK PRICE JUMPING UP 25 OR MORE OVER THE NEXT YEAR MR HULTGREN SAYS ANADARKO PETROLEUM HOUSTON GAINED 775 A SHARE OR MORE THAN 16 LAST WEEK AFTER A MABON SECURITIES ANALYST UPGRADED THE STOCK TO BUY FROM HOLD AMTECH DALLAS LOST NEARLY 14 TO 1575 EVEN THOUGH THE MAKER OF ELECTRONIC IDENTIFICATION SYSTEMS UNVEILED ITS NEW SMARTPASS READER USED TO IDENTIFY MOVING VEHICLES FOR SUCH PURPOSES AS TOLL COLLECTION AS WELL AS MONITOR PARKING SECURITY AND COMMERCIAL FLEET ACTIVITY PRIDE PETROLEUM HOUSTON TRADED AT 31 TIMES ITS AVERAGE DAILY VOLUME IN CLOSING THE WEEK UNCHANGED AT 5 THE COMPANY SAID IT WILL BUILD AND OPERATE TWO DRILLING BARGES FOR PETROLEOS DE VENEZUELA PRIDE SAID IT EXPECTS THE FIVEYEAR CONTRACT WHICH CONTAINS OPTIONS FOR AS MUCH AS AN ADDITIONAL FIVE YEARS TO GENERATE REVENUE OF MORE THAN 100 MILLION 9404200153 940420 WHO'S NEWS CITICORP CITICORP NEW YORK ROBERTA ARENA AND DAVID VAN PELT WERE NAMED EXECUTIVE VICE PRESIDENTS OF THIS BANK HOLDING COMPANY AND ITS CITIBANK SUBSIDIARY MS ARENA 46 YEARS OLD WILL HEAD THE COMPANY'S CREDITCARD BUSINESS IN NORTH AMERICA AND EUROPE WHILE MR VAN PELT 52 WILL BE RESPONSIBLE FOR THE NEWLY CREATED GLOBAL FINANCIAL INSTITUTIONS GROUP MS ARENA WAS MOST RECENTLY GENERAL MANAGER FOR CREDIT CARDS IN THE US AT CITIBANK AND MR VAN PELT WAS A SENIOR VICE PRESIDENT AT CITICORP 9404200152 940420 INTERNATIONAL GERMAN UNITY DAY THIS YEAR MAY BE NO WALK IN THE PARK REPORT TO WORK ON HOLIDAY AND CELEBRATE ON SUNDAY SAYS A PLAN TO RAISE FUNDS BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL GERMANY IS CONSIDERING THE EQUIVALENT THIS HOLIDAYHAPPY NATION HAS DECIDED TO FUND A NEW NATIONAL INSURANCE PROGRAM FOR ELDERLY CARE BY ELIMINATING ONE NATIONAL DAY OFF A COLLECTION OF CONSERVATIVES AND SOCIAL DEMOCRATS BELIEVES OCT 3 THE DAY OF GERMAN UNITY IS THE ONE THAT OUGHT TO GO UNDER THE PROPOSAL NOW BEING ADVOCATED BY SEVERAL STATE GOVERNMENTS GERMAN UNITY WOULD BE CELEBRATED ON THE FIRST SUNDAY OF OCTOBER INSTEAD OF A WORKDAY THE DECISION TO CUT A HOLIDAY FROM THE CALENDAR WAS A KEY PART OF A COMPROMISE TO INTRODUCE THE OLDAGE CARE PROGRAM A GOAL OF GERMAN POLITICIANS FOR 20 YEARS ALTHOUGH SOCIAL SECURITY PROGRAMS HERE NORMALLY REQUIRE WORKERS AND EMPLOYERS TO DIVIDE CONTRIBUTIONS EQUALLY TO INSURANCE FUNDS GERMANY'S RECESSIONWEARY BUSINESSES INSISTED THIS TIME THAT THEIR SHARE BE FUNDED BY ABOLISHING A HOLIDAY THAT PAVED THE WAY FOR A DISPLAY OF POSTWAR GERMAN DISCOMFORT WITH ANY SHOW OF PATRIOTISM A PHENOMENON CAUSED BY REVULSION AT THE NAZI PAST THIS IS THE OLD ANGST THAT REPUBLICAN PATRIOTIC HOLIDAYS WILL LEAD TO NATIONALIST EXCESSES SAYS ONE CHANCELLORY AIDE IN BONN THE WHOLE THING IS ABSOLUTELY FOOLISH WE'RE NOT CELEBRATING A BATTLE BUT A TREATY HE NOTES REFERRING TO THE UNITY TREATY OF 1990 UNDER WHICH EAST GERMANY BECAME PART OF THE FEDERAL REPUBLIC ON OCT 3 OF THAT YEAR CHANCELLOR HELMUT KOHL WHO HAS LONG SOUGHT TO FOSTER GERMAN PATRIOTISM OPPOSES MOVING THE HOLIDAY TO A SUNDAY AND SINCE TAMPERING WITH THE HOLIDAY WOULD REQUIRE BUNDESTAG APPROVAL MR KOHL APPEARS TO HAVE A STRONG CHANCE OF HAVING HIS WAY HE IS SUPPORTED BY THE GOVERNMENTS OF THE FIVE EASTERN STATES INDEED EASTERN GERMANS IN GENERAL SEEM TO HAVE TAKEN THE IDEA AS AN INSULT TO UNIFICATION ITSELF THIS IDEA IS BEING SUPPORTED PRIMARILY BY THOSE WHO WERE INDIFFERENT AS TO WHETHER UNITY CAME EARLIER OR LATER OPINED THE EASTERN BERLINBASED NEWSPAPER NEUE ZEIT IT WONDERED IN WHAT OTHER COUNTRY WOULD SOMETHING LIKE THIS BE THINKABLE 9404200151 940420 TECHNOLOGY XEROX UNVEILS EFFORT TO EXTEND ITS REACH IN DOCUMENT PRINTING STAMFORD CONN XEROX CORP AS EXPECTED ANNOUNCED A SERIES OF NEW PRODUCTS AND ALLIANCES THAT IT HOPES WILL EXTEND THE REACH OF ITS DOCUMENTPRINTING BUSINESSES INTO NEW MARKETS AND TAKE ADVANTAGE OF THE DIGITAL INFORMATION AGE TODAY YOU CAN PICK UP A TELEPHONE ANYWHERE AND REACH ANYWHERE SAID PETER VAN CUYLENBURG AN EXECUTIVE VICE PRESIDENT OF XEROX IT SHOULD BE THE SAME WITH DOCUMENTS AND PUBLICATIONS THE CORNERSTONE OF THE ANNOUNCEMENT A NEW SOFTWARE OFFERING CALLED DOCUSP WILL BE USED TO TIE TOGETHER PRINTERS AND COMPUTERS AND CREATE BOOKS ON DEMAND CUSTOMTAILORED COLLEGECOURSE PACKETS AS WELL AS BUSINESS FORMS FOR POTENTIAL CLIENTS SUCH AS INSURANCE COMPANIES AND BANKS AMERICAN TELEPHONE & TELEGRAPH CO HAS AGREED TO BECOME A SIGNIFICANT PARTNER TO PROVIDE MARKETING AND SERVICES FOR CUSTOMERS AMONG THE OTHER 50 TECHNOLOGY CONCERNS TO ENDORSE THE CONCEPT AND AGREE TO PROVIDE EXPERTISE AND APPLICATIONS ARE ADOBE SYSTEMS INC ANDERSEN CONSULTING ERNST & YOUNG INTERGRAPH CORP NOVELL INC MOORE CORP'S MOORE BUSINESS FORMS INC UNIT RR DONNELLY & SONS CO AND SUN MICROSYSTEMS COMPUTER CORP IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE XEROX SHARES CLOSED AT 97625 UP 75 CENTS 9404200150 940420 NATIONAL MEDICAL SETS ACCORD TO SELL STAKE IN DIALYSIS SUBSIDIARY SANTA MONICA CALIF NATIONAL MEDICAL ENTERPRISES INC SAID IT AGREED TO SELL FOR 755 MILLION A 70 INTEREST IN ITS KIDNEYDIALYSIS SERVICES SUBSIDIARY THE PROPOSED INVESTOR IS DLJ MERCHANT BANKING PARTNERS LP AND AFFILIATED PARTNERSHIPS NATIONAL MEDICAL WHICH PLANS TO RETAIN A 30 INTEREST IN THE SUBSIDIARY EXPECTS THE TRANSACTION TO CLOSE BY THE END OF JUNE THE SUBSIDIARY MEDICAL AMBULATORY CARE INC IS BASED IN TACOMA WASH IT HAS ABOUT 700 EMPLOYEES WHO PROVIDE 400000 DIALYSIS TREATMENTS ANNUALLY AT HOSPITALS AND OUTPATIENT CENTERS IN EIGHT STATES THE SUBSIDIARY RECORDED REVENUE OF ABOUT 70 MILLION IN THE YEAR ENDED MAY 31 1993 THE TRANSACTION IS CONSISTENT WITH NATIONAL MEDICAL'S STRATEGY OF FOCUSING ON ITS ACUTECARE HOSPITAL BUSINESS THE COMPANY SOLD MOST OF ITS REHABILITATION HOSPITALS IN JANUARY AND HAS AN AGREEMENT TO SELL MOST OF ITS PSYCHIATRIC HOSPITALS NATIONAL MEDICAL HAS SAID THAT A LARGE CHUNK OF ASSETSALE PROCEEDS WILL BE USED FOR 375 MILLION IN ANTICIPATED COSTS RELATED TO A PROPOSED SETTLEMENT OF FEDERAL AND STATE FRAUD INVESTIGATIONS NATIONAL MEDICAL LAST WEEK ANNOUNCED A PRELIMINARY PACT WITH THE US JUSTICE DEPARTMENT AND THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO SETTLE THE PROBE INTO ALLEGED PATIENT ABUSE AND KICKBACKS DLJ MERCHANT BANKING PARTNERS IS A 1 BILLION EQUITY FUND DEDICATED TO LEVERAGED ACQUISITIONS ITS GENERAL PARTNER DLJ MERCHANT BANKING INC IS A SUBSIDIARY OF DONALDSON LUFKIN & JENRETTE INC A NEW YORK INVESTMENT CONCERN 9404200149 940420 MARKETING & MEDIA FRUIT OF THE LOOM SAID LIKELY TO BUY CALVIN KLEIN JEANS BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CALVIN KLEIN INC IS CLOSE TO AN AGREEMENT TO SELL ITS JEANS DIVISION TO FRUIT OF THE LOOM INC FOR CLOSE TO 50 MILLION SCUTTLING AN EARLIER AGREEMENT TO SELL THE UNIT FOR 35 MILLION TO RIO SPORTSWEAR INC ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION OFFICIALS FROM CLOSELY HELD CALVIN KLEIN DIDN'T RETURN PHONE CALLS SEEKING COMMENT MARK STEINKRAUSS A SPOKESMAN AT CHICAGOBASED FRUIT OF THE LOOM DECLINED TO COMMENT BUT PEOPLE FAMILIAR WITH THE SITUATION SAY THAT FRUIT OF THE LOOM IS NEGOTIATING TO PURCHASE THE FACTORY AND LAUNDRY BUSINESS OF THE JEANS DIVISION AND TO LICENSE THE CALVIN KLEIN NAME UNDER A LONGTERM ARRANGEMENT THAT WILL PAY KLEIN A ROYALTY EARLIER THIS YEAR CALVIN KLEIN SIGNED A LETTER OF INTENT TO SELL ITS JEANS DIVISION TO RIO FOR 35 MILLION AND RIO WAS TO LICENSE THE KLEIN NAME THE SALE WAS EXPECTED TO CLOSE BY THE END OF THIS MONTH BUT AFTER THE LETTER OF INTENT EXPIRED ON MARCH 27 RIO LEARNED THAT CALVIN KLEIN WAS STARTING TO CONSIDER OTHER BIDS ACCORDING TO ARNOLD SIMON RIO PRESIDENT HE SAID I THINK THAT THEY'RE INTERESTED IN GETTING AS MUCH MONEY AS THEY CAN PEOPLE FAMILIAR WITH THE SITUATION SAID THAT MR KLEIN'S FRIEND AND ADVISER ENTERTAINMENT MOGUL DAVID GEFFEN SOUGHT A BETTER DEAL FOR THE JEANSWEAR DIVISION THEY ADDED THAT HE RECOMMENDED THE SALE TO FRUIT OF THE LOOM EVEN THOUGH ITS OFFER WASN'T THE HIGHEST BECAUSE OF FRUIT OF THE LOOM'S PROMISE TO SPEND HEAVILY ON MARKETING AND BECAUSE OF THAT COMPANY'S RESPECTED BRAND IDENTITY IN MAY 1992 MR GEFFEN HELPED BAIL HIS FRIEND OUT OF A TOUGH SPOT BY BUYING 62 MILLION OF CALVIN KLEIN INC'S JUNKBOND DEBT IN EFFECT LENDING THE COMPANY MONEY CALVIN KLEIN INC REPAID HIM THE FOLLOWING YEAR WITH FUNDS BORROWED FROM CITIBANK MR GEFFEN WHO HAS CONTINUED TO ACT AS AN ADVISER IS CURRENTLY SEEKING BUYERS FOR THE COMPANY'S CK WOMEN'S SPORTSWEAR DIVISION THOUGH HE WASN'T AVAILABLE TO COMMENT YESTERDAY IN AN INTERVIEW LAST MONTH HE DESCRIBED HIMSELF AS AN UNOFFICIAL THIRD BOARD MEMBER MR GEFFEN HAS HELPED CALVIN KLEIN FORMULATE ITS STRATEGY OF SELLING ALL ITS MANUFACTURING BUSINESSES TO FOCUS ON LICENSING AND DESIGN FOR FRUIT OF THE LOOM WHICH MAKES UNDERWEAR AND CASUAL SPORTSWEAR THE CALVIN KLEIN JEANS ACQUISITION WOULD FIT WITH ITS CURRENT STRATEGY OF BUYING WELLKNOWN APPAREL BRANDS LAST MONTH FRUIT OF THE LOOM COMPLETED ITS PURCHASE OF GITANO GROUP INC A NEW YORK MARKETER OF WOMEN'S BUDGET SPORTSWEAR 9404200148 940420 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN CHANCELLOR HELMUT KOHL SAID HE WOULD PUSH FOR BRISKER EUROPEAN UNION DEREGULATION WHEN GERMANY TAKES OVER THE EU'S ROTATING PRESIDENCY JULY 1 BILLED AS A WAY TO FREE ECONOMIC FORCES TO INCREASE COMPETITIVENESS SPEED NEW TECHNOLOGIES AND CREATE JOBS THE GERMAN INITIATIVE ALSO WOULD SEEK TO LOOSEN THE EU COMMISSION'S SWAY OVER MEMBERS' INDUSTRIAL AND SOCIAL POLICIES MR KOHL ALSO AIMS TO SPEED EU INTEGRATION OF CENTRAL AND EASTERN EUROPE'S TRANSITION ECONOMIES WHICH STILL FACE MANY EU TRADE RESTRICTIONS AND TO INVOLVE THEIR LEADERS IN EU SECURITY POLICY BUT ANALYSTS SAID GERMAN PLANS FOR SWEEPING REFORMS FACE OPPOSITION FROM EU COUNTRIES THAT ARE WEAKENED BY HIGH UNEMPLOYMENT AND SOCIAL DISCONTENT AND ARE VYING FOR EU FINANCING SOME ATTEMPTS AT DEREGULATION OF LABOR MARKETS FOR EXAMPLE HAVE PROMPTED STRIKE THREATS EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT GOVERNORS ENDORSED STRATEGIES AND RESULTS OF ITS PRESIDENT JACQUES DE LAROSIERE OF FRANCE IN REORGANIZING AND CUTTING COSTS AT THE EBRD ANNUAL MEETING IN RUSSIA GOVERNORS BACKED A GOAL OF 60 OF EBRD FUNDS GOING TO PRIVATE PROJECTS IN EASTERN EUROPE IN ADDITION TO PUBLICWORKS AND NUCLEARSAFETY JOBS THEY WILL CONSIDER A CAPITAL INCREASE GOVERNMENT SHAREHOLDERS NOW HAVE PLEDGED 1132 BILLION PEDRO SOLBES SPAIN'S ECONOMY CHIEF WAS ELECTED EBRD CHAIRMAN SUCCEEDING ANNE WIBBLE SWEDEN'S FINANCE MINISTER CIGARETTE SALES IN JAPAN ROSE 11 TO A RECORD 3326 BILLION SMOKES IN THE YEAR ENDED MARCH 31 THE FIFTH CONSECUTIVE ANNUAL INCREASE THIS REFLECTED 13 GROWTH IN THE ADULT POPULATION TO 94 MILLION THE PRIVATE TOBACCO INSTITUTE OF JAPAN SAID SALES OF FOREIGN BRANDS JUMPED 62 TO A RECORD 597 BILLION CIGARETTES OR 18 OF THE MARKET THE GOVERNMENT PARTLY OWNS AND IS GRADUALLY PRIVATIZING JAPAN TOBACCO INC WHICH FOUND IN A MAY 1993 SURVEY THAT 36 OF ADULTS SMOKED A RECORD LOW FOR THE SECOND YEAR IN A ROW SOUTH KOREA WILL ABOLISH ITS LIMIT ON INDIVIDUALS' FOREIGNCURRENCY HOLDINGS EFFECTIVE JUNE 1 UNDER CURRENT RULES AN INDIVIDUAL HOLDING FOREIGN CASH EXCEEDING 10000 MUST SELL THE EXCESS OR DEPOSIT IT IN A BANK BUT THE GOVERNMENT WANTS PEOPLE WITH MORE THAN 50000 TO REPORT THE SUMS VOLUNTARILY FOR CALCULATING FOREIGNCURRENCY RESERVES IT ALSO WILL ALLOW COMPANIES TO USE AS MUCH AS 300000 OF SOUTH KOREA'S WON CURRENCY TRIPLE THE CURRENT LIMIT IN SETTLING IMPORT EXPORT AND REINSURANCE ACCOUNTS THE EUROPEAN UNION COMMISSION ASKED MEMBER COUNTRIES TO GIVE THE EUROPEAN CURRENCY UNIT FOREIGNCURRENCY STATUS AS PART OF MEASURES TO MAKE ITS USE LEGALLY SOUND THE PROPOSAL AIMS TO IMBUE THE ECU IN CONTRACTS AND BONDS BEFORE IT IS ADOPTED AS EUROPE'S SINGLE CURRENCY THE ECU IS A BASKET CURRENCY CONSISTING OF WEIGHTED AMOUNTS OF EACH OF THE EU'S 12 NATIONAL CURRENCIES SOME OR ALL OF WHICH ARE TO REPLACED IN 1997 OR 1999 DEPENDING ON EACH COUNTRY'S ECONOMIC SITUATION UNDER THE EU UNIFICATION TREATY TAIWAN DEFENDED ITS USE OF PRISON LABOR AFTER A US BOY'S TOY AIRPLANE WAS FOUND TO CONTAIN A TAIWAN CONVICT'S NOTE APPEALING FOR A HUMANRIGHTS INVESTIGATION THIS PROMPTED TAIPEI LAWMAKERS TO PRESS THE GOVERNMENT ABOUT ANY VIOLATIONS OF PRISONERS' RIGHTS THE JUSTICE MINISTRY NOTING THAT TAIWAN LAW REQUIRES PRISONERS TO WORK SIX TO EIGHT HOURS A DAY SAID SOMETIMES THEY EVEN GET HIGHER PAY THAN OTHER FACTORY WORKERS SO WE ARE NOT ABUSING THEM INTERNATIONAL LAW DOESN'T PROHIBIT PRISONERS FROM MAKING GOODS FOR EXPORT BUT US LAW BANS THEIR IMPORT SEEKING TO LIMIT DAMAGE TO THE SPANISH GOVERNMENT FROM A GROWING POLITICAL SCANDAL PRIME MINISTER FELIPE GONZALEZ VOWED TO TAKE TOUGH ACTION AGAINST CORRUPTION IN HIS ANNUAL STATE OF THE NATION SPEECH MR GONZALEZ PROPOSED NAMING A SPECIAL PROSECUTOR AND OVERHAULING THE PENAL CODE AMONG MEASURES TO COMBAT CORRUPTION IN SOCIALIST PARTY RANKS AND RESTORE PUBLIC CONFIDENCE IN GOVERNMENT BUT OPPOSITION PARTY LEADERS CALLED ON MR GONZALEZ TO RESIGN ASSAILING HIM FOR ECONOMIC MISMANAGEMENT AND LOSS OF CREDIBILITY OTHER SCANDALS HAVE EMERGED DURING THE SOCIALISTS' 11 YEARS IN POWER BUT NONE HAS ROUSED PUBLIC BILE AS MUCH AS THE ALLEGATION THIS MONTH THAT A FORMER CENTRAL BANK GOVERNOR BENEFITED FROM IRREGULAR STOCKMARKET DEALINGS AND FAILED TO DECLARE ABOUT 930000 IN TRADING PROFITS MOREOVER MR GONZALEZ HAS COME UNDER FIRE FOR SEEMINGLY ALLOWING HIS PARTY TO OBSTRUCT CORRUPTION INQUIRIES WITH THE RECENT DISCLOSURE OF A COINCIDENTAL CASE OF ALLEGED MISMANAGEMENT OF PUBLIC FUNDS SPANIARDS INCREASINGLY PERCEIVE THAT SOCIALISTS LET MANY POLITICIANS STRIKE IT RICH WITH IMPUNITY FOR ANY OFFENSES US AUTOS ARE SELLING WELL IN CHINA THE CHINA BUSINESS TIMES SAID BUT CONSUMERS COMPLAINED OF DIFFICULTY IN GETTING SPARE PARTS FOR THE 14400 CARS THAT WERE IMPORTED FROM THE US LAST YEAR SINCE 1988 WHEN BURMA'S MILITARY JUNTA BEGAN LIBERALIZING THE ECONOMY 95 FOREIGNINVESTMENT PROJECTS VALUED AT A TOTAL OF 123 BILLION HAVE BEEN APPROVED AND 73 OF THEM HAVE BEGUN OPERATING THE STATEOWNED NEWSPAPER KYEMON SAID 9404200147 940420 WHO'S NEWS COUNCIL OF BETTER BUSINESS BUREAUS INC COUNCIL OF BETTER BUSINESS BUREAUS INC ARLINGTON VA JAMES L BAST 57 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS NONPROFIT BUSINESS MEMBER ORGANIZATION HE SUCCEEDS JAMES H MCILHENNY 66 WHO IS RETIRING BUT REMAINS A CONSULTANT TO THE COUNCIL THROUGH OCTOBER MR BAST FORMERLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PRESSTEK INC WAS MOST RECENTLY AN INDEPENDENT MANAGEMENT CONSULTANT THE COUNCIL IS THE UMBRELLA ASSOCIATION FOR MORE THAN 180 BETTER BUSINESS BUREAUS IN THE US AND CANADA 9404200146 940420 INTERNATIONAL RUSSIA'S TAX ON LOANS RILES FOREIGN FIRMS BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW A NEWLY ENACTED RUSSIAN TAX LAW CONTAINS A LAND MINE FOR FOREIGNERS VENTURING INTO BUSINESS HERE TAXES TOTALING 23 THAT CAN BE LEVIED ON FOREIGN LOANS TO ENTERPRISES IN RUSSIA THESE TAXES ARE JEOPARDIZING HUNDREDS OF MILLIONS OF DOLLARS IN TRADE CREDITS AND DIRECT LOANS THAT IN THE NORMAL COURSE OF BUSINESS WOULD BE PROVIDED BY FOREIGN FIRMS TO THEIR RUSSIAN PARTNERS ACCORDING TO SPOKESMEN FOR THE NEWLY FORMED AMERICAN CHAMBER OF COMMERCE IN MOSCOW WHICH REPRESENTS 176 USBASED FIRMS MUCH NEEDED FINANCING FROM FOREIGN SOURCES TO RUSSIAN LEGAL ENTITIES HAS BEEN STOPPED SAYS AN OPEN LETTER SENT MONDAY BY THE AMERICAN CHAMBER TO TOP RUSSIAN ECONOMIC AND TAX OFFICIALS THE LETTER QUOTED GEORGE REESE MANAGING PARTNER FOR THE MOSCOW OFFICE OF THE ACCOUNTING FIRM ERNST & YOUNG AS WARNING THAT TO MAKE LOANS WITH THIS COMMERCIAL UNCERTAINTY COULD SUBJECT OUR MEMBERS TO POTENTIAL CATASTROPHIC FINANCIAL CONSEQUENCES THESE WESTERN BUSINESSMEN FIND IT COLD COMFORT THAT THE RUSSIAN GOVERNMENT PROBABLY NEVER INTENDED TO CREATE THIS 23 TAX ON LEGITIMATE BUSINESS LOANS VARIOUS RUSSIAN OFFICIALS INCLUDING ECONOMICS MINISTER ALEXANDER SHOKHIN HAVE PROMISED IN THE PAST FEW DAYS THAT THE TAX WILL BE ANNULLED BUT THAT HASN'T HAPPENED YET THIS REALLY NEEDS TO BE ADDRESSED IMMEDIATELY SAYS COOPERS & LYBRAND PARTNER LARRY ANDERSON IN MOSCOW WHEN PRESIDENT BORIS YELTSIN SIGNED A PACKAGE OF TAX LAWS IN DECEMBER ONE OF THE AIMS WAS TO CLOSE A LOOPHOLE THAT SOME RUSSIAN COMPANIES WERE USING TO EVADE PAYING RUSSIA'S 20 VALUEADDED TAX THE COMMON DODGE WAS TO CAMOUFLAGE REVENUE AS PHONY LONGTERM LOANS FROM ABROAD THAT IN PRACTICE MIGHT NEVER BE REPAID BUT THE VAGUE WORDING OF THE RELEVANT PARAGRAPH OF THE LAW LEFT ROOM FOR TAX INSPECTORS AT THEIR DISCRETION TO SLAP A 20 VALUEADDED TAX PLUS A 3 SOCALLED SPECIAL TAX NOT JUST ON TAX CHEATS BUT ON ANY FOREIGN LOAN NOT FUNNELED THROUGH A BANK LICENSED IN RUSSIA APPARENTLY IT TOOK A WHILE FOR RUSSIA'S TAX INSPECTORS TO NOTICE THIS NEW DISCRETIONARY POWER BECAUSE IT WAS ONLY ABOUT A MONTH AGO THAT THEY BEGAN HITTING UP A FEW FOREIGN LENDERS THE AMERICAN CHAMBER OF COMMERCE SAID SOME US BUSINESSES WHICH IT DECLINED TO IDENTIFY HAVE BEEN ASKED TO PAY UNDER CURRENT REGULATIONS IF A FOREIGN LENDER IS ASKED TO PAY THE 23 TAX AND REFUSES TAX AUTHORITIES CAN FREEZE THE LENDER'S ASSETS IN RUSSIA AND IMPOSE A FINE EQUAL TO THREE TIMES THE TAX BILL TAX INSPECTORS HAVE A STRONG INCENTIVE TO TRY TO COLLECT THIS FINE BECAUSE UNDER RUSSIA'S SYSTEM ABOUT ONETHIRD OF ALL TAX PENALTIES ARE TURNED OVER TO FUNDS THAT DOLE OUT BONUSES TO THEM THERE IS SOME SUSPICION IN THE FOREIGN BUSINESS COMMUNITY HERE THAT THE NEW TAX MAY ALSO DEVELOP INTO A PROTECTIONIST TOOL FAVORING RUSSIAN BANKS BOTH RUSSIAN GOVERNMENT OFFICIALS AND WESTERN BUSINESSMEN HERE POINT OUT THAT COSTLY MUDDLES SUCH AS THIS 23 TAX ARE A NATURAL RESULT OF RUSSIA'S COMMUNIST LEGACY OF RULES LEFT DELIBERATELY MURKY SO THEY COULD BE MANIPULATED AS THE AUTHORITIES CHOSE IN RUSSIA'S FLEDGLING DEMOCRACY THERE IS NO LARGE BODY OF LEGAL PRECEDENT AND LITTLE EXPERIENCE IN SHAPING SUCH NATIONAL ASSETS AS A UNIFIED TAX CODE INSTEAD A GOVERNMENT HUNGRY FOR REVENUE KEEPS CONJURING UP UNUSUAL TAXES SUCH AS THIS THAT INHIBIT THE VERY TRADE AND INVESTMENT FOR WHICH THE COUNTRY IS STARVED CURRENCY TRADERS ARE WARNING FOR EXAMPLE THAT A NEW 01 TAX ABOUT TO BE IMPOSED ON HARDCURRENCY TRANSACTIONS IN MOSCOW COULD SMOTHER BUSINESS ON THE OTHERWISE CONVENIENT MOSCOW INTERBANK CURRENCY EXCHANGE UNCERTAINTY IS ALSO WIDESPREAD ABOUT TAX AND TARIFF POLICY GENERALLY NEW IMPORT TARIFFS ON FOODSTUFFS SUCH AS SUGAR WERE INTRODUCED MARCH 15 BUT AFTER PROTESTS FROM IMPORTERS HAVE NOW BEEN POSTPONED UNTIL JULY 1 SOME FOREIGNERS MOVING HERE HAVE FOUND THEMSELVES UNEXPECTEDLY SUBJECT TO A NEW 60 TARIFF ON PERSONAL EFFECTS IN SUCH A CLIMATE US BUSINESS LEADERS HERE INSIST THAT IT ISN'T ENOUGH FOR RUSSIAN OFFICIALS TO OFFER VERBAL ASSURANCES THAT LEGITIMATE FOREIGN LENDERS WON'T BE HIT WITH THE 23 TAX MEANT TO CATCH THE CHEATS THE PROBLEM SAYS ERNST & YOUNG'S MR REESE IS THAT THEY'RE BURNING DOWN THE BARN IN ORDER TO KILL THE RATS 9404200145 940420 WHO'S NEWS BENETTON'S TOSCANI MAY QUIT AMID FEUD OVER CREATIVE CONTROL MILAN ADVERTISING GURU OLIVIERO TOSCANI HAS OFFERED TO RESIGN HIS POST AS CREATIVE DIRECTOR OF BENETTON SPA FOLLOWING A HIGHLY PUBLICIZED FEUD WITH MANAGEMENT OVER CREATIVE CONTROL THE POSSIBLE DEPARTURE OF THE COMPANY'S LONGTIME IMAGE MAKER WHOSE SIGNATURE AD CAMPAIGNS HAVE FEATURED DYING AIDS VICTIMS COLORED CONDOMS AND THE BLOODIED COMBAT UNIFORM OF A DEAD BOSNIAN SOLDIER RAISES QUESTIONS ABOUT THE COMPANY'S FUTURE COMMUNICATIONS STRATEGY MANY ANALYSTS CREDIT MR TOSCANI'S SHOCKING BUT INNOVATIVE CAMPAIGNS WITH BUILDING BENETTON'S BRAND NAME INTO ONE OF THE MOST RECOGNIZABLE IN THE WORLD MR TOSCANI 53 YEARS OLD SENT A LETTER LAST WEEK TO BENETTON'S MANAGING DIRECTOR ALDO PALMERI ASKING FOR MORE EDITORIAL FREEDOM FOR THE COMPANY'S QUARTERLY MAGAZINE COLORS ACCORDING TO PEOPLE WHO WORK AT THE COMPANY HE ALSO WROTE TO COLLABORATORS SAYING HE HAD OFFERED TO RESIGN IF THE CHANGES WEREN'T ACCEPTED A SPOKESWOMAN FOR BENETTON LAURA POLLINI CONFIRMED THAT MR TOSCANI HAD SUSPENDED SOME OF HIS ACTIVITIES AT THE COMPANY PRIMARILY EDITORIAL RESPONSIBILITIES AT COLORS BUT THAT BENETTON HADN'T RECEIVED A FORMAL LETTER OF RESIGNATION MR TOSCANI WASN'T AVAILABLE FOR COMMENT BUT HE TOLD REPORTERS EARLIER THAT HE WAS DISSATISFIED WITH NUOVA ECOLOGIA THE NEW ROMEBASED PUBLISHER CHOSEN FOR COLORS IN TRADING ON THE MILAN STOCK EXCHANGE YESTERDAY BENETTON'S STOCK FELL TO 25510 LIRE 1566 A SHARE DOWN 490 LIRE FOLLOWING A 6 DECREASE MONDAY AMID RUMORS OF A POSSIBLE DIVORCE BETWEEN MR TOSCANI AND BENETTON 9404200144 940420 ECONOMY REPUBLICANS FIND PROGRESSIVE RELIGION IN PUSH TO TAX WORKER HEALTH BENEFITS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONSERVATIVE REPUBLICANS ARE SOUNDING AN OLDFASHIONED DEMOCRATIC THEME REDISTRIBUTION OF WEALTH BY MAKING THE FEDERAL TAX CODE MORE PROGRESSIVE AS THEY CHALLENGE THE CLINTON HEALTHREFORM PLAN WITH STRIKING UNITY REPUBLICAN ALTERNATIVES TO THE CLINTON PLAN TAKE AIM AT CURRENT TAX RULES SHELTERING EMPLOYERPAID HEALTH BENEFITS NO LESS THAN THE CONSERVATIVE HERITAGE FOUNDATION IS LEADING AN EFFORT TO WIPE OUT THE ENTIRE 74 BILLIONAYEAR TAX BREAK FOR INDIVIDUALS AND REALLOCATE THE MONEY AS A TAX CREDIT TO HELP LOW AND MIDDLEINCOME FAMILIES BUY HEALTH INSURANCE THE GOAL ISN'T TO SOAK THE RICH SO MUCH AS TO AVOID GOVERNMENT PRICE CONTROLS AND USE THE TAX CODE TO MAKE CONSUMERS MORE COSTCONSCIOUS BUT LIBERAL RHETORIC PROVIDES A USEFUL RATIONALE ORGANIZED LABOR REMAINS THE BIGGEST BARRIER TO TAXING BENEFITS BUT IT MAY HAVE TO RETHINK ITS POSITION THE SUCCESS OF THE CLINTON INITIATIVE IN CONGRESS RESTS ON FINDING NEW REVENUE TO FINANCE EXPANDED COVERAGE AND SUBSIDIES FOR SMALL BUSINESSES THE MONEY THAT COULD BE RAISED BY LIMITING THE TAX BREAK IS INVITING TO DEMOCRATS WHO MAY URGE LABOR TO SHIFT ITS STANCE TO HELP PLACATE SMALL BUSINESS STILL TAXING HEALTH BENEFITS FOR THE WEALTHY AT LEAST WAS AMONG THE OPTIONS DISCUSSED BY HOUSE WAYS AND MEANS COMMITTEE DEMOCRATS LAST WEEK AND PROLABOR LAWMAKERS SHOWED SUPPORT FOR THE IDEA IN THE PANEL'S HEALTH SUBCOMMITTEE LAST MONTH THE WHITE HOUSE HAS KEPT A LOW PROFILE ON THE TAX ISSUE MANY OF ITS HEALTHCARE FINANCING OPTIONS SUCH AS CIGARETTE AND PAYROLL TAXES WOULD FALL HEAVILY ON LARGELY DEMOCRATIC WORKINGCLASS FAMILIES ECONOMISTS SAY ITS PROPOSAL TO REQUIRE BUSINESS TO HELP PAY FOR WORKERS' INSURANCE WOULD EAT INTO WAGES AS WELL THE ADMINISTRATION HAS RELIED SO FAR ON DIRECT SUBSIDIES TO OFFSET HIGHER COSTS AND GIVE A MORE PROGRESSIVE CAST TO ITS PACKAGE BUT THIS APPROACH WOULD BE EXPENSIVE THE IDEA OF TRIMMING TAX BENEFITS INSTEAD AND RECYCLING THE SAVINGS TO HELP LOWERINCOME FAMILIES PAY HEALTH BILLS STRIKES MANY AS MORE EFFICIENT DESPITE LABOR'S BLUECOLLAR RHETORIC IN FAVOR OF THE TAX SHELTER FOR HEALTH BENEFITS MOST STUDIES SHOW THAT THE CURRENT ARRANGEMENT REALLY DOES FAVOR THE WEALTHY THE CONGRESSIONAL BUDGET OFFICE LAST MONTH ESTIMATED THAT THE TAX BREAK FOR A FAMILY EARNING 20000 TO 30000 AVERAGES 500 A YEAR COMPARED WITH 1590 FOR THOSE EARNING 75000 TO 100000 BUT THE TAX BREAK IS DIFFICULT TO ATTACK BECAUSE SO MANY HOUSEHOLDS SHARE IN THE BENEFIT WHILE THE RICH GET MORE IN DOLLARS THE SHELTER ALSO IS IMPORTANT TO THE FAR MORE NUMEROUS MIDDLEINCOME FAMILIES THE CBO REPORT SHOWS THE AVERAGE BENEFIT IS A STRIKINGLY CONSISTENT 23 OF AFTERTAX INCOME FOR FAMILIES WITH INCOME OF 20000 TO 100000 ULTIMATELY THE DEBATE MAY TURN ON WHERE TO CUT OFF THE TAX BREAK AND HOW TO RECYCLE THE RESULTING REVENUE WHILE THE HERITAGE PLAN WOULD DO AWAY WITH THE SHELTER ENTIRELY FOR INDIVIDUALS SEVERAL VARIATIONS WOULD SET A CAP ON THE EMPLOYER OR EMPLOYEE SIDE OF THE LEDGER OR BOTH A PLAN PROPOSED BY REP JIM MCCRERY R LA FOR INSTANCE WOULD LIMIT THE TAX EXCLUSION FOR INDIVIDUALS AND THE TAX DEDUCTION FOR EMPLOYERS TO 2500 FOR AN ADULT OR 5000 FOR A FAMILY A 5000 CAP WOULDN'T AFFECT A WORKER MAKING 40000 A YEAR WITH 5000 IN FAMILY HEALTH BENEFITS A 4000 CAP BY CONTRAST WOULD COST SUCH A WORKER 150 MORE IN TAXES ASSUMING A 15 TAX RATE ONE OPTION FOR DEMOCRATS WOULD BE TO PHASE OUT THE TAX PREFERENCES AT HIGHERINCOME LEVELS INDIVIDUALS EARNING 40000 OR LESS COULD BE LEFT UNTOUCHED FOR INSTANCE AND THE EXCLUSION COULD BE PROGRESSIVELY REDUCED AT HIGHER INCOME LEVELS UNTIL IT IS FULLY PHASED OUT FOR THOSE EARNING 70000 OR MORE THE BIGGER POLITICAL QUESTION IS WHETHER DEMOCRATS AND REPUBLICANS COULD UNITE BEHIND A SPECIFIC PLAN GOP MODERATES IN THE SENATE ARE IN THE STRONGEST POSITION TO BARGAIN BUT HOUSE DEMOCRATS FEAR THAT IF THEY RISE TO THE CONSERVATIVE CHALLENGE AND BACK A PLAN THAT ULTIMATELY FAILS THEY WILL HAVE ACCOMPLISHED NOTHING BUT ANGER THEIR LABOR FRIENDS AMONG REPUBLICANS MEANWHILE THERE IS A CERTAIN NERVOUSNESS THAT THE ISSUE COULD BE SEEN AS MERELY A MIDDLECLASS TAX RISE AND REBOUND TO THE PARTY'S DETRIMENT WILLIAM KRISTOL WHO HAS SOUGHT TO DAMP REPUBLICAN HOPES OF COMPETING WITH THE CLINTON HEALTH INITIATIVE DESCRIBES THE HERITAGE PLAN AS A STRATEGIC ERROR AND SEN DON NICKLES R OKLA A CHIEF SPONSOR AND MEMBER OF THE GOP LEADERSHIP IS LEERY OF SEEMING TOO EAGER TO REALLOCATE WEALTH I WOULDN'T SAY PROGRESSIVE SAYS THE OKLAHOMA CONSERVATIVE WHO PALES AT THE NOTION OF ANYTHING LIBERAL I'D SAY FAIR LOUISIANA REP MCCRERY ROOTED IN HUEY LONG'S BACKYARD ISN'T AS SHY ABOUT CHALLENGING DEMOCRATS WITH THEIR OWN VALUES I'M AS REPUBLICAN AS ONE CAN GET SAYS THE SOFTSPOKEN FORMER GEORGIAPACIFIC CORP ATTORNEY AND MEMBER OF THE WAYS AND MEANS HEALTH SUBCOMMITTEE BUT IT CERTAINLY FITS WITH THE DEMOCRATS' LONGHELD BELIEF THAT THE TAX SYSTEM SHOULD BE MADE MORE PROGRESSIVE 9404200143 940420 MORTGAGE DERIVATIVES CLAIM VICTIMS BIG AND SMALL BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL THE BLOODBATH IN MORTGAGE DERIVATIVES IS CLAIMING NEW CASUALTIES AS INVESTORS AND DEALERS CONTINUE TO RUSH FOR THE EXITS FEEDING A VICIOUS CYCLE OF FALLING PRICES AND EVAPORATING DEMAND THE DAMAGE IS HITTING HIGH AND LOW FROM SOPHISTICATED PLAYERS SUCH AS CARGILL INC AND KIDDER PEABODY & CO AND SEVERAL RESPECTED MUTUAL FUNDS ALL THE WAY TO A LITTLEKNOWN NEW JERSEY BROKERAGE FIRM THAT HAWKED THESE BONDS TO CREDIT UNIONS AND INDIVIDUAL INVESTORS THE MORTGAGE MARKET HAS BEEN ONE OF THE WORST HIT BY RISING INTEREST RATES WHICH HAVE ALSO ROCKED HEDGE FUNDS WALL STREET FIRMS AND OTHER INVESTORS IN BONDS AND SECURITIES DERIVED FROM BONDS A 420 MILLION HEDGE FUND MANAGED BY CARGILL THE PRIVATELY HELD COMMODITY POWERHOUSE BASED IN MINNEAPOLIS IS THE MOST PROMINENT OF THE LATEST VICTIMS CARGILL'S FUND KNOWN AS THE MINNETONKA FUND RAN AFOUL OF A SUPPOSEDLY MARKET NEUTRAL STRATEGY THAT RELIED ON ESOTERIC MORTGAGEBACKED DERIVATIVES AND BORROWED MONEY TO GENERATE HIGH YIELDS WITH WHAT WAS EXPECTED TO BE VERY LOW RISK THAT APPROACH FAILED NOTORIOUSLY AT THE MINNETONKA FUND AS IT DID AT THE GRANITE HEDGE FUNDS RUN BY NEW YORKBASED ASKIN CAPITAL MANAGEMENT WHICH EARLIER THIS MONTH WAS FORCED TO SEEK PROTECTION IN BANKRUPTCY COURT THE MINNETONKA FUND LOST 90 MILLION OR MORE OF THE MONEY IT MANAGED FOR CARGILL AND OTHER INVESTORS DURING THE BOND MARKET'S MARCH DOWNDRAFT TRADERS SAY PLUMMETING PRICES IN EMERGINGMARKET DEBT WHICH THE FUND ALSO OWNED ARE SAID TO HAVE CONTRIBUTED TO THE DAMAGE MEANWHILE CONTINUING TURMOIL IN THE MORTGAGE SECURITIES MARKET IN APRIL APPEARS TO HAVE WORSENED THE TOLL THE TRADERS ADD THERE'S A FEELING OUT THERE THAT NO ONE HAS BEEN ABLE TO KEEP UP WITH THE PACE OF DECLINES IN THE SECURITIES SAYS ONE TRADER RISING INTEREST RATES HAVE CAUSED THE MORTGAGEBACKED SECURITIES MARKET TO UNRAVEL UNPREDICTABLY ACROSS THE BOARD EVEN UNDER THE BEST OF CIRCUMSTANCES THESE BONDS ARE DIFFICULT TO MANAGE BECAUSE THEIR VALUES DEPEND ON ASSUMPTIONS ABOUT HOW FAST HOMEOWNERS WILL PREPAY THE MORTGAGES THAT BACK THESE SECURITIES THE RECENT INTERESTRATE VOLATILITY HAS BADLY ROILED THOSE ASSUMPTIONS SO THAT IN TODAY'S MARKET IT'S ALMOST ANYONE'S GUESS WHAT FAIR PRICES OF THESE BONDS SHOULD BE DEALERS' ESTIMATES OF WHAT'S FAIR ARE OFTEN HEAVILY INFLUENCED BY THEIR OWN APPETITE FOR TAKING ON MORE RISK MORTGAGE DERIVATIVES KNOWN AS COLLATERALIZED MORTGAGE OBLIGATIONS CONSTITUTE ABOUT HALF OF THE 15 TRILLION OF MORTGAGEBACKED SECURITIES OUTSTANDING THE PROBLEMS ARE MOST EVIDENT IN RISKY MORTGAGE DERIVATIVES SUCH AS PRINCIPAL ONLY STRIPS AND INVERSE FLOATERS BUT LOSSES IN THOSE SECTORS ARE INFECTING MORE DOCILE SECTORS OF THE MORTGAGEBACKED MARKET AS THEIR NAMES SUGGEST POS PAY INVESTORS ONLY THE PRINCIPAL ON THE UNDERLYING MORTGAGES WHILE INVERSE FLOATERS HAVE YIELDS THAT ARE DESIGNED TO FALL WHEN INTEREST RATES RISE AND VICE VERSA MAKING A BAD SITUATION WORSE WALL STREET DEALERS HAVE BEEN RELUCTANT TO MAKE MARKETS IN THESE ESOTERIC SECURITIES BECAUSE THEY'RE AFRAID OF ADDITIONAL LOSSES KIDDER AND OTHER MAJOR WALL STREET FIRMS HAVE TAKEN SIZABLE HITS FROM BEING FORCED TO TAKE SUCH BONDS BACK FROM TROUBLED CUSTOMERS INCLUDING MR ASKIN AS THESE DEALERS MAKE THEMSELVES SCARCE THAT TENDS TO LEAVE INVESTORS IN THE LURCH YOU ARE SEEING THE UGLY SIDE OF THE STREET NOW SAYS A LARGE INSTITUTIONAL INVESTOR THE PROBLEM IS THAT WALL STREET CREATED THESE BONDS THEY ARE THE ONLY ONES WHO CAN PRICE THEM AND THEY ARE NOT SUPPORTING THEIR BONDS INDEED TRADERS SAY MINNETONKA'S LOSSES WERE DEEPENED BY THE FUND'S INABILITY TO GET GOOD PRICES FROM ITS DEALERS CARGILL OFFICIALS WON'T COMMENT ABOUT THE FUND ITS OUTSIDE INVESTORS OR THE SIZE OF THE LOSS HOWEVER IN A STATEMENT RELEASED YESTERDAY CARGILL SAID THE EARNINGS OF CARGILL'S FINANCIAL BUSINESS ARE DERIVED FROM A BROAD BASE OF DIVERSE OPERATIONS THEIR PERFORMANCE THIS YEAR REMAINS VERY STRONG DESPITE RECENT MARKET DEVELOPMENTS AND IN FACT IS ON PACE FOR RECORD EARNINGS IN THIS FISCAL YEAR LAST YEAR CARGILL'S FINANCIALSERVICES UNIT CONTRIBUTED ABOUT ONETHIRD OF THE COMPANY'S 358 MILLION IN NET INCOME ACCORDING TO A CARGILL OFFICIAL INVESTORS REPORT THAT DEALERS ARE SO LOATH TO QUOTE PRICES FOR MANY COLLATERALIZED MORTGAGE OBLIGATIONS OR CMOS OUT OF FEAR THAT INVESTORS WILL DEMAND TO TRADE AT THOSE PRICES THAT SOCALLED BIDOFFER SPREADS HAVE WIDENED TO 10 POINTS OR 100 ON A BOND WITH A 1000 FACE VALUE THE BID INDICATES THE PRICE AT WHICH DEALERS WILL BUY BONDS FROM CUSTOMERS WHILE THE OFFER IS THE PRICE AT WHICH DEALERS ARE WILLING TO SELL BONDS SUCH WIDE SPREADS HURT FUND MANAGERS WHO USE BID QUOTES TO MARK TO MARKET OR VALUE THEIR PORTFOLIOS FOR REPORTING PURPOSES WHEN THERE'S A PANIC IN THE MARKET ALL THE BROKERS WHO ARE ASKED TO MARK BONDS TO MARKET JUST LOWBALL THE NUMBERS BECAUSE THEY'RE AFRAID TO STEP UP TO THE PLATE IF CUSTOMERS WANT TO UNLOAD THEIR BONDS SAYS DOUGLAS BREEDEN CHIEF EXECUTIVE OF SMITH BREEDEN ASSOCIATES INC A MONEY MANAGER SPECIALIZING IN MORTGAGEBACKED SECURITIES WHO HASN'T RUN INTO PROBLEMS EVEN IN NORMAL TIMES WE GET OFFTHEWALL MARKS FROM DEALERS ON A ROUTINE BASIS AND THAT PROBLEM ONLY GETS WORSE IN TIMES OF TURMOIL HE ADDS JUST HOW MUCH OF A PROBLEM HAS THIS BEEN RAMIN ROUHANI A MANAGING DIRECTOR AT CDC INVESTMENT MANAGEMENT CORP WHICH HOLDS 55 BILLION OF MORTGAGE SECURITIES PRIMARILY INVESTED IN ESOTERICA GROUSES THAT THIS MARKET DOESN'T WORK LIKE A MARKET SHOULD LAST WEEK HE SAYS HE CIRCULATED A 25 MILLION FLOATINGRATE BOND TO 11 DEALERS AND GOT BIDS THAT ENDED UP THREE POINTS APART OR 30 ON A BOND WITH A 1000 FACE VALUE THAT'S ABOUT TEN TIMES THE USUAL SPREAD FOR A BOND LIKE THAT HE SAYS FOR SOME THE PROBLEMS ARE EVEN GRAVER SEVERAL MUTUAL FUNDS RUN BY WORTH BRUNTJEN A PORTFOLIO MANAGER AT MINNEAPOLISBASED PIPER CAPITAL MANAGEMENT HOLD SO MANY HARDTOVALUE CMOS THAT THEIR PRICING SERVICE HAS FOUND IT DIFFICULT ON SOME DAYS TO VALUE THESE PORTFOLIOS IN TIME TO POST THEIR DAILY NET ASSET VALUES THAT'S MADE IT TOUGH FOR INVESTORS TO KNOW WHAT THEIR HOLDINGS ARE CURRENTLY WORTH OR WHAT PRICE THEY MUST ACCEPT TO ENTER OR LEAVE THE FUNDS OUR PRICING SERVICE HAS A VERY SHORT TIME TO COLLECT THOSE PRICES AND DURING TUMULTUOUS MARKETS THE CALCULATIONS ARE DELAYED SAYS MR BRUNTJEN WHO MANAGES FIVE FUNDS WITH A TOTAL OF 17 BILLION IN ASSETS I THINK DEALERS ARE TRYING TO AVOID ADDING VOLATILE CMOS TO INVENTORY MR BRUNTJEN'S LARGEST FUND THE PIPER JAFFRAY INSTITUTIONAL GOVERNMENT INCOME FUND IS ESTIMATED TO HAVE LOST NEARLY 10 FOR THE SIX MONTHS ENDED MARCH 31 ACCORDING TO LIPPER ANALYTICAL SERVICES COMPARED WITH AN AVERAGE DECLINE OF 09 FOR 62 FUNDS WITH SIMILAR INVESTMENT OBJECTIVES THE NET ASSET VALUE HAS CONTINUED TO SLIP SINCE THEN ACCORDING TO OTHER FUND MANAGERS THE FUND'S NET ASSET VALUE WAS QUOTED YESTERDAY AT 935 A SHARE DOWN 21 CENTS FROM THE PREVIOUS DAY IT IS DOWN 173 SO FAR THIS YEAR MEANWHILE HYM FINANCIAL INC OF CLIFTON NJ HAS BEEN EVEN HARDER HIT THE SMALL BROKERAGE FIRM HAD BUILT UP A HUGE POSITION IN MORTGAGESECURITIES AT THE END OF THE YEAR TO DISTRIBUTE AMONG ITS CLIENTS PRINCIPALLY INDIVIDUALS AND CREDIT UNIONS BUT THE SHARP MOVEMENT IN INTEREST RATES CAUSED ITS INVENTORY TO DROP SO SHARPLY IN VALUE THAT THE FIRM NOT ONLY LOST ITS 8 MILLION OF CAPITAL BUT STILL OWES WALL STREET FIRMS AN ADDITIONAL 4 MILLION ACCORDING TO FORMER EMPLOYEES HYM WAS TOLD TO CEASE TRADING ON FRIDAY BY THE NATIONAL ASSOCIATION OF SECURITIES DEALERS PHILIP EITMAN WHO HEADED THE FIRM SAYS HE CANNOT COMMENT ABOUT WHAT HAPPENED 9404200142 940420 BUSINESS BRIEFS AMERICAN NATIONAL CAN CO A UNIT OF PECHINEY SA REACHED A DEFINITIVE AGREEMENT TO ACQUIRE SUBSTANTIALLY ALL OF THE ASSETS OF LIBERTY GLASS CO TERMS WEREN'T DISCLOSED JETFORM CORP COMPLETED ITS ACQUISITION OF DVS COMMUNICATIONS INC AN OTTAWA SUPPLIER OF MULTIMEDIA PRODUCTS AND TRAINING SERVICES TERMS WEREN'T DISCLOSED UNIFORCE TEMPORARY PERSONNEL INC ACQUIRED BRANNON & TULLY INC A NORCROSS GA PROVIDER OF MANAGEMENT INFORMATION SYSTEMS TERMS WEREN'T DISCLOSED SYBASE INC COMPLETED ITS ACQUISITION FOR STOCK VALUED AT ABOUT 25 MILLION OF MICRO DECISIONWARE INC A DATABASE COMPANY THAT WAS MAJORITYOWNED BY SAFEGUARD SCIENTIFICS VANSTAR CORP AGREED TO ACQUIRE A COMPUTERTRAINING AND SUPPORT BUSINESS FROM ZIFF TECHNOLOGY A UNIT OF ZIFF COMMUNICATIONS CO TERMS WEREN'T DISCLOSED 9404200141 940420 LAW SUPREME COURT SAYS POTENTIAL JURORS CAN'T BE EXCLUDED BECAUSE OF GENDER BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT RULED THAT PEOPLE MAY NOT BE EXCLUDED FROM JURIES BASED SOLELY ON THEIR SEX THE 63 DECISION WHICH EXTENDED A LINE OF PREVIOUS RULINGS BANNING JUROR EXCLUSION BASED ON RACE WAS APPLAUDED BY WOMEN'S RIGHTS ADVOCATES BUT THE RULING WILL HAVE COMPLICATED EFFECTS INCLUDING MAKING IT MORE DIFFICULT FOR PROSECUTORS IN RAPE CASES TO SEEK MOSTLY FEMALE JURIES A COMMON PRACTICE IN HIS OPINION FOR THE SOMEWHAT FRAGILE MAJORITY JUSTICE HARRY BLACKMUN STRESSED LEGAL PRINCIPLES RATHER THAN PRACTICAL CONSEQUENCES THE CONSTITUTIONAL GUARANTEE OF EQUAL PROTECTION UNDER THE LAW SHOULD BE INTERPRETED TO COVER SEX AS WELL AS RACE IN JURY SELECTION HE SAID WHEN PERSONS ARE EXCLUDED FROM PARTICIPATION IN OUR DEMOCRATIC PROCESSES SOLELY BECAUSE OF RACE OR GENDER THE PROMISE OF EQUALITY DIMS AND THE INTEGRITY OF OUR JUDICIAL SYSTEM IS JEOPARDIZED HE WROTE AT ISSUE ARE SOCALLED PREEMPTORY CHALLENGES WHICH ALLOW ATTORNEYS TO EXCLUDE POTENTIAL JURORS WITHOUT OFFERING A JUSTIFICATION UNDER RULES THAT VARY FROM STATE TO STATE A CERTAIN NUMBER OF PREEMPTORY CHALLENGES ARE ALLOWED IN ADDITION TO EXCLUSIONS FOR ARTICULATED REASONS SUCH AS A CONFLICT OF INTEREST FOR EXAMPLE JOINING THE MAJORITY OPINION WERE JUSTICES JOHN PAUL STEVENS SANDRA DAY O'CONNOR DAVID SOUTER AND RUTH BADER GINSBURG HOWEVER JUSTICE O'CONNOR IN A SEPARATE CONCURRING OPINION EXPRESSED REGRET OVER SOME PROBABLE RESULTS OF THE COURT'S RULING INCLUDING ADDITIONAL LITIGATION OVER JURY SELECTION SHE ALSO OBJECTED TO THE MAJORITY'S DECLARATION THAT ITS RULING APPLIED TO SEXBASED EXCLUSION BY PRIVATE INDIVIDUALS AS WELL AS THE GOVERNMENT JUSTICE O'CONNOR OBSERVED THAT UNDER THE RULING A BATTERED WIFE BEING PROSECUTED FOR ATTACKING HER HUSBAND COULDN'T SEEK A JURY WITH AS MANY WOMEN AS POSSIBLE ALTHOUGH JUSTICE ANTHONY KENNEDY VOTED WITH THE MAJORITY HE DECLINED TO JOIN JUSTICE BLACKMUN'S EXPANSIVE 20PAGE OPINION INSTEAD JUSTICE KENNEDY WROTE A BRIEF CONCURRING OPINION FOCUSING NARROWLY ON THE INJURY TO PERSONAL DIGNITY AND TO THE INDIVIDUAL'S RIGHT TO PARTICIPATE IN THE POLITICAL PROCESS CAUSED BY SEXBASED JURY PROCEDURES IN A CHARACTERISTICALLY BITING DISSENT JUSTICE ANTONIN SCALIA ACCUSED THE MAJORITY OF STRAINING TO BE THOROUGHLY UPTODATE AND RIGHTTHINKING IN MATTERS PERTAINING TO THE SEXES HE NOTED THE IRONY THAT THE PARTICULAR APPEAL BEFORE THE HIGH COURT WAS BROUGHT BY A MAN COMPLAINING THAT THE STATE OF ALABAMA HAD EXCLUDED MEN FROM THE JURY IN A PATERNITY LAWSUIT FILED ON BEHALF OF THE MOTHER AN ALLFEMALE JURY FOUND THE MAN TO BE THE FATHER AND HE WAS ORDERED TO PAY CHILD SUPPORT YESTERDAY'S RULING REVERSED THAT OUTCOME AND SENT THE CASE BACK TO THE ALABAMA STATE COURT SYSTEM FOR A NEW TRIAL DISMISSING WHAT HE CALLED THE MAJORITY'S ANTIMALECHAUVINIST ORATORY JUSTICE SCALIA SAID THAT WOMEN TYPICALLY ARE ELIMINATED FROM JURIES NOT AS A RESULT OF DISCRIMINATORY ATTITUDES BUT BECAUSE OF DOUBTS THAT THEY WILL BE SYMPATHETIC TO THE SIDE TRYING TO EXCLUDE THEM ASSUMING BOTH MEN AND WOMEN ARE REMOVED ON THIS BASIS THE SYSTEM AS A WHOLE IS EVENHANDED HE SAID CHIEF JUSTICE WILLIAM REHNQUIST AND JUSTICE CLARENCE THOMAS JOINED THE DISSENT JEB VS TB 9404200140 940420 FOREIGN EXCHANGE DOLLAR CONTINUES ITS DECLINE AND HITS INTRADAY LOWS AGAINST EUROPEAN RIVALS BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR CONTINUED ITS DOWNWARD SPIN YESTERDAY ON LINGERING BEARISHNESS OVER ITS INABILITY TO MAKE HEADWAY EITHER ON MONDAY'S FEDERAL RESERVE RATE INCREASE OR ON LAST WEEK'S RATE CUT BY GERMANY'S CENTRAL BANK THE DOLLAR ALSO FELL PREY TO AN EARLIER RETREAT IN US STOCKS HITTING INTRADAY LOWS AGAINST THE MARK AND OTHER EUROPEAN CURRENCIES IN LINE WITH A SLIDE IN THE DOW JONES INDUSTRIAL AVERAGE BUT WHILE STOCKS STAGED A RECOVERY LATER IN THE DAY THE DOLLAR REMAINED ENTRENCHED JUST ABOVE INTRADAY LOWS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16997 MARKS DOWN FROM 17090 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10305 YEN DOWN FROM 10318 YEN STERLING WAS TRADING AT 14815 UP FROM 14765 ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10332 YEN AND AT 17015 MARKS AFTER THE FED RATEHIKE ANNOUNCEMENT IT LOOKED LIKE A GOOD BUYING OPPORTUNITY BUT THEN THE DOLLAR WOULDN'T GO UP SAID BILL BERTHA CHIEF FOREIGNEXCHANGE DEALER AT MELLON BANK IN PITTSBURGH THEN WE HIT A SERIES OF VICIOUS STOPLOSSES ON THE WAY DOWN HE ADDED THAT THE DOLLAR'S FALL MAY HAVE BEEN EXAGGERATED BY THIN MARKET CONDITIONS AS IT PLUNGED TO AN INTRADAY LOW OF 16960 MARKS IN EARLY AFTERNOON TRADING IN NEW YORK IT WAS THE FIRST TIME THE DOLLAR HAD FALLEN BELOW THE PSYCHOLOGICAL SUPPORT LEVEL OF 17000 MARKS SINCE APRIL 5 RUMORS ALSO ABOUNDED THAT THE BUNDESBANK WAS SELLING DOLLARS FOR MARKS YESTERDAY SAID JOHN MCCARTHY MANAGER OF FOREIGN EXCHANGE AT ING CAPITAL MARKETS INC IN NEW YORK BUT WHILE THE RUMORS COULDN'T BE CONFIRMED MR MCCARTHY SAID SOME KIND OF LOWKEY INTERVENTION WAS LOGICAL CONSIDERING THE DOLLAR FELL DESPITE HIGHER US INTEREST RATES AND GIVEN THE GERMAN CENTRAL BANK'S TRADITIONAL EAGERNESS TO KEEP THE MARK STRONG IN ORDER TO HOLD IMPORTED INFLATION AT BAY ESSENTIALLY WHAT WE SEE IN THE MARKET IS THAT THE DOLLAR IS BEHAVING IN A MANNER THAT ISN'T NECESSARILY IN LINE WITH WHAT MOST PEOPLE WOULD EXPECT MR MCCARTHY SAID PEOPLE ARE BAFFLED BY THE FED'S MOVE INFLATION DOESN'T APPEAR TO BE A PROBLEM AT THE MOMENT AND THERE'S SOME PUZZLEMENT AS TO WHAT THE FED SEES THAT FINANCIAL MARKETS DON'T SEE HE ADDED TRADERS SAID THAT WITH THE MARK STRONG DESPITE THE GRADUAL CONVERGENCE OF US AND GERMAN RATES THE BUNDESBANK MIGHT HAVE A WINDOW OF OPPORTUNITY FOR A DEEPERTHANEXPECTED CUT IN ITS 14DAY SECURITIES REPURCHASE OR REPO RATE TO BE ANNOUNCED TODAY THE MARKET IS FACTORING IN A MAXIMUM OF A 10BASISPOINT SHAVING ON THE REPO RATE THE BUNDESBANK'S PREFERRED INSTRUMENT FOR INFLUENCING THE MONEY MARKET FROM THE CURRENT 570 BUT TRADERS SAID THAT WITH THE MARK SHOWING UNEXPECTED STRENGTH FOLLOWING MONDAY'S 25BASISPOINT RISE IN THE FED'S SHORTTERM RATES THE BUNDESBANK COULD SURPRISE THE MARKET WITH A REPORATE CUT OF ABOUT 15 BASIS POINTS IN ADDITION ANALYSTS SAID A STRONGER RATE CUT THAN HAD BEEN TYPICAL THE PAST TWO MONTHS WOULD BRING THE REPO RATE IN LINE WITH THE INTERESTRATE STRUCTURE CREATED LAST WEEK WHEN THE BUNDESBANK CHOPPED 25 BASIS POINTS FROM ITS BENCHMARK LOMBARD AND DISCOUNT RATES 9404200139 940420 BUSINESS BRIEF MOBIL CORP PRODUCTION PACT IS SIGNED WITH VIETNAM STATE FIRM MOBIL CORP SAID IT SIGNED A PRODUCTIONSHARING AGREEMENT WITH VIETNAM'S STATE OIL COMPANY TO DEVELOP THE BLUE DRAGON FIELD OFF THE COAST AND HOPES TO BEGIN DRILLING IN AUGUST MOBIL WOULD BE THE FIRST US COMPANY TO DRILL IN THAT NATION SINCE THE END OF THE VIETNAM WAR THE US IN FEBRUARY LIFTED A LONGSTANDING TRADE EMBARGO THE FAIRFAX VA COMPANY WON THE RIGHT TO EXPLORE FOR THE FIELD LAST DECEMBER FOR MOBIL THE BLUE DRAGON FIELD ABOUT 175 MILES SOUTHEAST OF HO CHI MINH CITY REPRESENTS A RETURN TO AN AREA WHERE IT EXPLORED FOR OIL IN THE 1970S IN WHAT WAS THEN SOUTH VIETNAM VIETNAM AWARDED MOBIL AND PARTNERS A 725 INTEREST IN THE PROSPECT MOBIL HAS A 50 INTEREST IN THE GROUP JAPAN PETROLEUM EXPLORATION CO 25 INDONESIA PETROLEUM LTD 15 AND NISSHO IWAI CORP 10 THE REMAINING INTEREST IS HELD BY THE STATE OIL CONCERN PETROVIETNAM AT 15 AND A RUSSIAN FIRM ZARUBEJINEFT AT 125 9404200138 940420 EQUITABLE TWO UNITS PAY 550000 TO SETTLE NEW YORK CHARGES NEW YORK EQUITABLE LIFE ASSURANCE SOCIETY OF THE US AND TWO OF ITS UNITS PAID 550000 IN FINES TO SETTLE CHARGES WITH STATE REGULATORS COVERING THE SALE OF UNAPPROVED PRODUCTS MEANWHILE THE NEW YORK STATE INSURANCE DEPARTMENT SAID IT WILL TAKE DISCIPLINARY ACTION AGAINST AS MANY AS 80 EQUITABLE AGENTS INVOLVED IN THE VIOLATIONS SALVATORE R CURIALE THE STATE'S INSURANCE SUPERINTENDENT SAID THE MOST SERIOUS VIOLATIONS INVOLVED THE SALE BY EQUITABLE OF COLORADO OF SUCH PRODUCTS AS CORPORATEOWNED LIFE INSURANCE THE DEPARTMENT SAID SUCH POLICIES UNDER WHICH CORPORATE ENTITIES ARE NAMED AS BENEFICIARIES AREN'T PERMITTED IN NEW YORK BECAUSE THE BENEFICIARIES DON'T HAVE A REQUISITE INSURABLE INTEREST AN EQUITABLE SPOKESWOMAN SAID EQUITABLE COS DISAGREES WITH THE INSURANCE DEPARTMENT ON THE APPLICATION OF THE STATUTE TO THE SALES BY THE COLORADO UNIT BUT SETTLED TO AVOID EXCESSIVELY LONG AND COSTLY LITIGATION OTHER VIOLATIONS INCLUDED AWARDING AGENTS WITH TRIPS BASED SOLELY UPON THEIR WINNING NEW ACCOUNTS PAYING COMMISSIONS TO INDIVIDUALS NOT PROPERLY LICENSED AND FAILING TO RESPOND TO CLAIMANTS SPEEDILY OR TO MAKE GOODFAITH ATTEMPTS TO PROMPTLY SETTLE CERTAIN CLAIMS 9404200137 940420 TUESDAY'S MARKETS STOCKS SLIP A FRACTION BONDS RISE PRICES SWING WILDLY ON JITTERY MARKET DOLLAR ENDS LOWER BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE ENDED FRACTIONALLY LOWER AFTER A DAY OF VOLATILE TRADING BOND PRICES ROSE AND THE DOLLAR FELL THE INDUSTRIAL AVERAGE EDGED DOWN 060 POINT TO 361982 STANDARD & POOR'S 500STOCK INDEX INCHED UP 008 TO 44254 AND THE NASDAQ COMPOSITE INDEX TUMBLED 760 TO 71285 ITS LOWEST LEVEL SINCE LAST AUGUST PRICES SWUNG WILDLY WITH THE INDUSTRIAL AVERAGE FLUCTUATING OVER A RANGE OF NEARLY 60 POINTS THE DOW OPENED HIGHER CLIMBED MORE THAN 21 POINTS THEN SANK MORE THAN 37 POINTS FROM ITS OPENING LEVEL ANALYSTS SAID INVESTORS REMAIN JITTERY AMID RISING INTEREST RATES AND WORRIES ABOUT THE STRENGTH OF CORPORATE EARNINGS EVEN STRONG PROFITS WEREN'T ENOUGH TO ENCOURAGE BUYERS CHRYSLER FOR INSTANCE REPORTED RECORD FIRSTQUARTER EARNINGS THAT EXCEEDED ANALYSTS' EXPECTATIONS BUT WAS REWARDED WITH A DRUBBING OF ITS STOCK PRICE CHRYSLER LED THE OTHER AUTO MAKERS LOWER DISHEARTENING INVESTORS WHO HAVE LOOKED TO THE AUTOS FOR MARKET LEADERSHIP MOST EARNINGS ARE COMING IN ON TARGET AND EVEN A LITTLE BETTER THAN EXPECTED SAID PETER CARDILLO DIRECTOR OF RESEARCH AT WESTFALIA INVESTMENTS BUT UNFORTUNATELY RIGHT NOW THE MOOD OF THE MARKET SAYS THAT'S NOT GOOD ENOUGH THE NASDAQ STOCK MARKET AND SMALL STOCKS IN GENERAL ALSO WERE VOLATILE DURING THE SESSION BUT THE NASDAQ FAILED TO RECOVER ALONG WITH THE INDUSTRIAL AVERAGE MARY FARRELL STOCKMARKET STRATEGIST AT PAINEWEBBER POINTED OUT THAT SMALLER STOCKS AND THE TECHNOLOGYLADEN NASDAQ COMPOSITE TEND TO BE MORE VOLATILE THAN LARGER STOCKS SHE ARGUED THAT SMALLER STOCKS WILL COME BOUNCING BACK ONE THING SMALL COMPANIES HAVE BEEN ABLE TO DO IS PRODUCE A GOOD EARNINGS STREAM MS FARRELL SAID WHEN WE MOVE BEYOND THIS PERIOD YOU'LL SEE THE MARKET ONCE AGAIN TRIGGERING OFF OF EARNINGS AND THAT'LL BE GOOD FOR SMALL CAPS THE BOND MARKET RECOVERED FROM ITS PLUNGE MONDAY THANKS TO SHORT COVERING AND NEWS OF A WIDER TRADE DEFICIT IN FEBRUARY WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 049 TO 11312 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 3233 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1491 ISSUES FELL AND 749 ROSE BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN 1/2 POINT OR MORE THAN 5 FOR EACH 1000 FACE AMOUNT TO YIELD 737 THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16997 MARKS AND 10305 YEN COMPARED WITH 17090 MARKS AND 10318 YEN MONDAY 9404200136 940420 TECHNOLOGY & HEALTH MANUFACTURERS' TOXIC EMISSIONS DECLINED IN 1992 BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TOXIC EMISSIONS BY LARGE MANUFACTURERS CONTINUE TO DECLINE BUT THE COMPANIES ARE GENERATING MORE WASTE THE ENVIRONMENTAL PROTECTION AGENCY SAID IN ITS LATEST ANNUAL SURVEY ON TOXIC RELEASES THE EPA SAID INDUSTRIAL EMISSIONS INTO AIR WATER OR LAND DROPPED TO 32 BILLION POUNDS IN 1992 THE MOST RECENT YEAR FOR WHICH DATA ARE AVAILABLE THE 1992 FIGURE REPRESENTS A DECLINE OF 6 FROM 1991 BUT THE AMOUNT OF WASTE GENERATED BY INDUSTRY ROSE TO 373 BILLION POUNDS A 05 INCREASE FROM 1991 MOREOVER TRANSFERS OF TOXIC CHEMICALS TO OFFSITE LOCATIONS FOR TREATMENT RECYCLING OR DISPOSAL ROSE TO 437 BILLION POUNDS A 17 INCREASE FROM 1991 THE SEEMINGLY CONFLICTING TRENDS MAY BE RELATED LYNN GOLDMAN EPA ASSISTANT ADMINISTRATOR FOR PESTICIDES PREVENTION AND TOXIC SUBSTANCES SAID EVERMOREELABORATE TECHNOLOGY AIMED AT REDUCING EMISSIONS MAY BE CREATING MORE WASTE THAT IS SENT TO LANDFILLS OR INCINERATORS BUT THE INCREASE IN WASTE GENERATION REPORTED IN THE SURVEY WAS SO SLIGHT SHE SAID THAT WE DON'T KNOW WHETHER THAT'S A REAL TREND OR NOT MS GOLDMAN SAID THAT THE EPA NEXT YEAR WILL PUBLISH A RULE EXPANDING THE NUMBER OF INDUSTRY SECTORS THAT MUST REPORT TOXIC RELEASES TO THE EPA POSSIBLY TO INCLUDE INCINERATORS AND LANDFILLS THE CURRENT REPORTING REQUIREMENT APPLIES ONLY TO MANUFACTURERS THAT EMPLOY MORE THAN 10 PEOPLE AND MANUFACTURE OR PROCESS MORE THAN 25000 POUNDS OF ANY REPORTABLE CHEMICALS OR OTHERWISE USE MORE THAN 10000 POUNDS OF THE CHEMICALS THE 1992 DATA SHOW A 94 DECREASE FOR TOXIC AIR EMISSIONS THE EPA ATTRIBUTED THE DECLINE TO DECREASED EMISSIONS OF VARIOUS SOLVENTS AMMONIA AND CHLORINE BUT WATER EMISSIONS INCREASED 12 FROM 1991 LARGELY BECAUSE OF RUNOFF FROM FOUR FERTILIZER PLANTS IN TEXAS AND LOUISIANA EXCLUDING THOSE PLANTS THE EPA SAID WATER RELEASES DECREASED MORE THAN 11 SINCE 1991 AS EXPECTED LOUISIANA WAS THE STATE WITH THE LARGEST QUANTITIES OF TOXIC RELEASES 465 MILLION POUNDS FOLLOWED BY TEXAS 420 MILLION TENNESSEE 194 MILLION OHIO 133 MILLION AND INDIANA 124 MILLION SEPARATELY THE ENERGY DEPARTMENT TODAY WILL SIGN A MEMORANDUM OF UNDERSTANDING WITH UTILITY COMPANIES COMMITTING THEM BY THE YEAR 2000 TO REDUCE TO 1990 LEVELS THEIR EMISSIONS OF CARBON DIOXIDE AND OTHER CHEMICALS BELIEVED TO CONTRIBUTE TO GLOBAL WARMING THE UNDERSTANDING COMMITS THEM TO REDUCE THESE EMISSIONS BELOW 1990 LEVELS IN SUBSEQUENT YEARS UNDER THE PLAN UTILITIES WILL REPORT ANNUALLY TO THE ENERGY DEPARTMENT ON THEIR PROGRESS ENERGY SECRETARY HAZEL O'LEARY SAID THAT 80 OF ALL US GENERATORS OF ELECTRICITY WILL PARTICIPATE IN THE VOLUNTARY PROGRAM MS O'LEARY SAID THE NATIONAL RESOURCES DEFENSE COUNCIL AN ENVIRONMENTAL GROUP WAS HASTY IN CONCLUDING IN A NEW REPORT THAT THE ADMINISTRATION WILL FALL FAR SHORT OF ITS PLEDGE TO REDUCE THE SOCALLED GREENHOUSEGAS EMISSIONS TO 1990 LEVELS BY 2000 RATHER THAN CALL THE PROGRAM A FAILURE SHE SAID I THINK WE OUGHT TO GET ON WITH IMPLEMENTING IT 9404200135 940420 MCDONNELL PACT ON CARGO PLANES DRAWS CRITICISM GAO SAYS SETTLEMENT PLAN WITH US IS INADEQUATE AND SHOULD BE REJECTED BY ANGELA SHAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE GENERAL ACCOUNTING OFFICE SAID A PROPOSED SETTLEMENT ON THE GOVERNMENT'S PURCHASE OF C17 AIRCRAFT FROM MCDONNELL DOUGLAS CORP IS INADEQUATE AND RECOMMENDED THAT IT BE REJECTED THE PROPOSED SETTLEMENT FALLS SHORT OF THE BEST INTERESTS OF THE GOVERNMENT FRANK CONAHAN THE GAO'S ASSISTANT COMPTROLLER GENERAL TESTIFIED TO THE SENATE ARMED SERVICES COMMITTEE THE SETTLEMENT REACHED LATE LAST YEAR CALLS FOR THE CONTRACTOR TO BE PUT ON A TWOYEAR PROBATIONARY PERIOD WHILE IT MAKES MANAGERIAL AND TECHNICAL IMPROVEMENTS THE PENTAGON WOULD BUY 40 C17S INITIALLY AND PURCHASE 80 MORE IF THE IMPROVEMENTS WERE MADE THE SETTLEMENT WAS ESTIMATED TO COST THE GOVERNMENT 348 MILLION AND THE COMPANY 454 MILLION BUT MR CONAHAN SAID THE LACK OF SPECIFICS ON WHEN AND WHAT KIND OF IMPROVEMENTS WERE NECESSARY MADE IT IMPOSSIBLE FOR THE GAO TO RECOMMEND THAT CONGRESS APPROVE THE SETTLEMENT IN ADDITION THE GAO ESTIMATED MCDONNELL DOUGLAS'S COST AT ONLY 46 MILLION ABOUT ONETENTH THE SETTLEMENT'S PROJECTIONS THE REPORT STATED THAT THE DIFFERENCE IS MADE UP OF ENGINEERING COSTS ALREADY INCURRED BY MCDONNELL DOUGLAS WITH OR WITHOUT A SETTLEMENT AND 273 MILLION THAT THE GOVERNMENT WOULD ADD TO THE EXISTING CONTRACT A MCDONNELL DOUGLAS SPOKESMAN SAID THE COMPANY IS GOING TO BE MAKING INVESTMENTS IN THE PROGRAM OF 454 MILLION HE SAID THE AGREEMENT ELIMINATED DISPUTES BETWEEN THE GOVERNMENT AND THE COMPANY WHICH ARE TEAMED NOW TO ENSURE THE PROGRAM HAS A CHANCE TO SUCCEED ON ITS OWN MERITS THE GOVERNMENT'S PROGRAM TO PURCHASE THE CARGO AIRCRAFT HAS BEEN BESET NOT ONLY BY QUALITY PROBLEMS BUT BY SCRUTINY FROM A CONGRESS LEANING TO CUT DEFENSE EXPENDITURES THE GAO ALSO SAID THE COST FOR 40 PLANES WOULD NOW BE 213 BILLION OR 50 OF THE ORIGINALLY PLANNED COST FOR 120 C17 AIRCRAFT THE AVERAGE UNIT PRICE IS UP SCHEDULES ARE SLIPPING RELIABILITY IS DOWN AND MAINTENANCE IS COSTING TWICE AS MUCH MR CONAHAN SAID THE PROGRAM IS BROKEN JOHN DEUTCH DEPUTY SECRETARY OF DEFENSE TESTIFIED THAT ALTHOUGH IT WAS TEMPTING TO CANCEL THE C17 PROGRAM ANOTHER MIXTURE OF ALTERNATIVE FLEETS SUCH AS C5B C141 AND COMMERCIAL WIDEBODY AIRCRAFT WOULDN'T BE AS COSTEFFECTIVE AS A FLEET OF RELIABLE C17S MR CONAHAN ALSO SAID THAT IF THE SETTLEMENT WERE APPROVED THE GOVERNMENT WOULD HAVE TO BUY MORE THAN 40 PLANES IN ORDER TO BENEFIT FROM THE IMPROVEMENT PROVISIONS UNDER THE SETTLEMENT ANY IMPROVEMENTS WOULDN'T BE IMPLEMENTED UNTIL NOVEMBER 1995 AND AIRCRAFT COMPLETED BEFORE THEN WOULDN'T RECEIVE THOSE IMPROVED STANDARDS HE SAID IN HIS WRITTEN TESTIMONY MR DEUTCH RECOMMENDED THAT MCDONNELL DOUGLAS BE PUT ON TWOYEAR INTERIM PROBATION AND CONTINUE TO MANUFACTURE AIRCRAFT AT A RATE OF SIX A YEAR AT SEN EDWARD KENNEDY'S D MASS URGING THE DEPUTY SECRETARY POSTPONED THE REMAINDER OF HIS TESTIMONY AFTER SHOWING FATIGUE MR DEUTCH HAD JUST RETURNED FROM TURKEY WHERE HE ATTENDED A MEMORIAL FOR THOSE KILLED IN A FRIENDLYFIRE ACCIDENT IN NORTHERN IRAQ 9404200134 940420 PAINEWEBBER NET FELL IN 1ST QUARTER MERRILL LIFTS PAYOUT BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PAINEWEBBER GROUP INC SAID THAT FIRSTQUARTER PROFIT FELL 21 TO 556 MILLION BECOMING THE FIRST MAJOR WALL STREET FIRM THIS QUARTER TO REPORT LOWER EARNINGS ON A YEARTOYEAR BASIS SEPARATELY AT ITS ANNUAL MEETING YESTERDAY MERRILL LYNCH & CO THE NATION'S BIGGEST BROKERAGE FIRM INCREASED ITS QUARTERLY DIVIDEND 15 TO 23 CENTS A SHARE FROM THE 20 CENTSASHARE DIVIDEND PAID SINCE OCTOBER 1993 THE MOVE WAS THE FOURTH DIVIDEND INCREASE IN TWO YEARS MERRILL LYNCH REPORTED ITS EARNINGS ON MONDAY PAINEWEBBER THE FIFTHLARGEST BROKERAGE FIRM IN THE NATION EARNED 71 CENTS A SHARE FOR THE QUARTER SQUEAKING PAST THE WALL STREET ANALYSTS' CONSENSUS EXPECTATION OF 70 CENTS A SHARE TRACKED BY ZACKS INVESTMENT RESEARCH IN THE YEAREARLIER PERIOD PAINEWEBBER EARNED 709 MILLION OR 89 CENTS A SHARE ANALYSTS SAID PAINEWEBBER'S EARNINGS DROP IS THE MOST VISIBLE SIGN SO FAR OF SLOWING PROFIT GROWTH ON WALL STREET IT SEEMS CLEAR THAT AS WE GO THROUGH THE YEAR ASSUMING THAT THE FEDERAL RESERVE CONTINUES TO TIGHTEN AND THE INTEREST RATE ENVIRONMENT IS DIFFICULT IT WILL BE HARD FOR BROKERAGE FIRMS TO SURPASS LAST YEAR'S EARNINGS SAID GUY MOSZKOWSKI AN ANALYST AT SANFORD C BERNSTEIN & CO ANALYSTS SAID WHILE BOTH MERRILL LYNCH AND PAINEWEBBER ENJOYED SIMILAR NET REVENUE GAINS DURING THE QUARTER PAINEWEBBER'S PROFIT FELL BECAUSE EXPENSES ROSE FASTER THAN REVENUE REVENUE CLIMBED 8 TO 7521 MILLION IN THE FIRST QUARTER WHILE NONINTEREST EXPENSES JUMPED 135 TO 6593 MILLION LIKE MERRILL LYNCH PAINEWEBBER SAID THAT COMMISSION REVENUE CLIMBED IN THE QUARTER RISING 16 TO 2807 MILLION AND ASSET MANAGEMENT FEES JUMPED 25 TO 914 MILLION BUT PRINCIPAL TRANSACTIONS TRADING USING PAINEWEBBER'S MONEY FELL 9 TO 1839 MILLION REFLECTING A DOWNTURN IN THE FIRM'S INSTITUTIONAL FIXEDINCOME BUSINESS AND INVESTMENT BANKING REVENUE DROPPED 4 TO 976 MILLION JANUARY AND FEBRUARY WERE VERY STRONG BUT THE LAST HALF OF MARCH WAS AFFECTED BY THE SWING IN INTEREST RATES SAID DONALD B MARRON CHAIRMAN AND CHIEF EXECUTIVE THE INSTITUTIONAL FIXEDINCOME VOLUME WAS DOWN A LOT AS IT WAS EVERYWHERE AND SO FAR THERE'S NO SIGN THAT IT'S COMING BACK THE SECOND QUARTER WILL NOT BE THE EASIEST QUARTER SAID MR MARRON THE INSTITUTIONAL FIXEDINCOME BUSINESS IS STILL WAY DOWN AND I THINK THE MARKETS AND THE CLIENTS ARE STILL WAITING TO GET A CLEAR DIRECTION ON INTEREST RATES IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY PAINEWEBBER'S STOCK ROSE 25 CENTS TO 1675 9404200133 940420 BLOCKBUSTER REPORTS SHARP EARNINGS RISE AMID PLANNED MERGER FORT LAUDERDALE FLA BLOCKBUSTER ENTERTAINMENT CORP SAID FIRSTQUARTER EARNINGS CLIMBED 62 EVEN AFTER PROVIDING FOR THE COSTS ASSOCIATED WITH ITS AGREEMENT TO MERGE WITH VIACOM INC FOR THE QUARTER THE VIDEO AND MUSIC RETAILER REPORTED EARNINGS OF 726 MILLION OR 29 CENTS A SHARE COMPARED WITH 447 MILLION OR 22 CENTS A SHARE A YEAR EARLIER REVENUE SURGED 61 TO 6965 MILLION FROM 4334 MILLION BLOCKBUSTER'S RESULTS WERE IN LINE WITH THE FORECASTS OF INDUSTRY ANALYSTS THE COMPANY SAID SAMESTORE REVENUE JUMPED 113 IN THE QUARTER ANALYSTS WERE ALSO HEARTENED BY THE COMPANY'S ABILITY TO ACHIEVE RECORD EARNINGS AFTER ABSORBING MOST OF THE LEGAL COSTS AND OTHER EXPENSES ASSOCIATED WITH THE PROPOSED VIACOM MERGER WHILE DEPRESSED STOCK PRICES OF BLOCKBUSTER AND VIACOM HAVE CAST DOUBT ON THE CONSUMMATION OF THE PACT BLOCKBUSTER WILL STILL HAVE TO PAY ABOUT 62 MILLION ANNUALLY IN INTEREST CHARGES ON THE MONEY IT HAS BORROWED TO INVEST IN VIACOM STOCK SAID NANDITA PARKER AN ANALYST FOR GERARD KLAUER MATTISON & CO INC BLOCKBUSTER CHIEF FINANCIAL OFFICER GREG FAIRBANKS SAID BLOCKBUSTER IS STILL RESPONDING TO QUESTIONS FROM THE SECURITIES AND EXCHANGE COMMISSION RELATED TO THE COMPANY'S PROXY FOR THE VIACOM MERGER HE SAID HE EXPECTS THE PROXY TO BE MAILED TO SHAREHOLDERS WITHIN A COUPLE OF WEEKS BLOCKBUSTER RELEASED ITS EARNINGS AFTER MARKETS CLOSED IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE BLOCKBUSTER SHARES CLOSED UNCHANGED AT 25375 9404200132 940420 AUTOS JAPANESE REGAIN SOME GROUND IN VEHICLE SALES BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL AS THE BIG THREE US AUTO MAKERS HAVE SEEMINGLY GONE FROM TRIUMPH TO TRIUMPH IN THE PAST YEAR OR SO YOU'D THINK THE JAPANESE HAD BEEN RUN OUT OF THE MARKET WELL THEY HAVEN'T BEEN IN FACT AFTER SLIPPING FROM THEIR 1991 PEAK THEY'RE GAINING MARKET SHARE JAPANESE AUTO COMPANIES SAW A GREATER INCREASE IN FIRSTQUARTER SALES THAN THEIR US COUNTERPARTS THE PACE IS EXPECTED TO REMAIN ROBUST TOYOTA'S CAMRY IS WITHIN JUST 520 CARS OF OVERTAKING THE FORD TAURUS AS THE BESTSELLING CAR IN THE NATION AND WHILE THE BIG THREE PLAN TO BOOST SECONDQUARTER PRODUCTION BY 117 JAPANESE AUTO MAKERS WILL INCREASE OUTPUT AT US FACTORIES BY A COMBINED 191 THE SMART PEOPLE IN DETROIT ARE NOT COUNTING THEM OUT BY ANY STRETCH OF THE IMAGINATION SAYS JOSEPH PHILLIPPI AN AUTO CONSULTANT AT LEHMAN BROS THEY'LL BE BACK BIGGER STRONGER AND BETTER THAN EVER WHAT'S BEHIND JAPAN'S RECENT RESURGENCE FOR STARTERS THE JAPANESE AUTO MAKERS HAVE FIGURED OUT HOW TO USE CHEAP LEASES TO MARKET THEIR CARS COMPETITIVELY DESPITE THE STRONG YEN THEY'RE ALSO PRODUCING AND SELLING MORE USMADE VEHICLES WHICH DON'T HAVE THE PRICE DISADVANTAGE OF IMPORTS AND GIVING THEM A BOOST WITH CONSUMERS JAPANESE MODELS STILL WIN HIGHER QUALITY RATINGS FROM OUTSIDE CONSULTANTS SUCH AS JD POWER & ASSOCIATES THAN BIG THREE MODELS ALTHOUGH THAT GAP HAS NARROWED IN THE FIRST QUARTER JAPANESE NAMEPLATES ACCOUNTED FOR 223 OF SALES OF CARS AND LIGHT TRUCKS IN THE US UP FROM 219 A YEAR EARLIER TOTAL SALES ROSE 202 IN THE QUARTER COMPARED WITH 175 FOR THE DOMESTICS INDUSTRY EXPERTS SAY THE JAPANESE ARE ALSO GETTING AN INDIRECT HAND FROM DETROIT GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP HAVE INADEQUATE SUPPLIES OF SOME OF THEIR HOTTESTSELLING MODELS SOME CUSTOMERS WHO CAN'T GET THE DOMESTIC MODEL THEY WANT MAY HAVE BEEN DRIVEN BACK TO JAPANESE SHOWROOMS SOME IN THE INDUSTRY SAY BUT THAT DOESN'T MEAN THE JAPANESE ARE INVULNERABLE WHILE SPECIAL LEASE PROGRAMS HAVE BOOSTED REVENUE RECENTLY ANALYSTS SAY ANYTHING SHORT OF WIDESPREAD PRICE CUTS IS ONLY A SHORTTERM SOLUTION JAPANESE CARS COST AN AVERAGE OF 3000 MORE THAN COMPETING DETROIT MODELS EXPERTS SAY AND THAT HAS SCARED AWAY MANY SHOPPERS BUT WITH THE YEN'S STRENGTH AGAINST THE DOLLAR PRICE CUTS ARE NEARLY IMPOSSIBLE HONDA MOTOR CO'S US SALES VOLUME JUMPED 238 THROUGH MARCH 31 FROM A YEAR EARLIER MAINLY BECAUSE OF STRONG ACCORD SALES IN FEBRUARY ACCORD SALES JUMPED WHEN HONDA INSTITUTED A TWOYEAR LEASE PROGRAM PRICED AT 199 A MONTH WITH 1300 DOWN HONDA DEALERS WHO NOT SO LONG AGO WERE ABOVE SUCH PROMOTIONS ARE ACTING MORE LIKE OLDFASHIONED BUICK DEALERS IN SUBURBAN DETROIT ONE DEALER RECENTLY HELD A MIDNIGHT MADNESS SALE TO PROMOTE THE PROGRAM WE HAD A GREAT RESPONSE SAYS MARY MORRIS GENERAL MANAGER OF FERNDALE HONDA DURING THE SALE THE DEALERSHIP HAD BETWEEN 50 AND 60 BROWSERS IN A TYPICAL DAY ONLY 10 TO 15 PEOPLE STOP BY THE DEALERSHIP MS MORRIS SAYS THE MARKET WILL GOBBLE UP THE CAR AT 199 A MONTH SAYS CHRISTOPHER CEDERGREN AN INDUSTRY CONSULTANT WITH AUTOPACIFIC GROUP INC FORD IS OFFERING A TWOYEAR LEASE ON THE TAURUS FOR 265 A MONTH WITH 1500 DOWN OTHER JAPANESE AUTO MAKERS ALSO ARE COUNTING ON LEASE PROGRAMS TO BOOST REVENUE MAZDA AND NISSAN NOW OFFER SIMILAR LEASES ON THEIR BREADANDBUTTER MODELS MITSUBISHI EXTENDED ITS FIRSTQUARTER 60MONTH LEASE PROGRAM ON THE GALANT ES PRICED AT 199 A MONTH AND 750 DOWN SALES OF THE GALANT WHICH WAS REDESIGNED FOR THE 1994 MODEL YEAR JUMPED TO 8456 VEHICLES THROUGH MARCH 31 FROM A PALTRY 854 CARS A YEAR EARLIER ALSO PUTTING PRESSURE ON JAPANESE AUTO MAKERS IS DETROIT'S PRODUCT RENAISSANCE THE BIG THREE AUTO MAKERS WILL INTRODUCE 149 RESTYLED PRODUCTS BETWEEN NOW AND THE 1998 MODEL YEAR INDUSTRY WATCHERS SAY IN ADDITION THE JAPANESE HAVE A DEARTH OF STRONG PRODUCTS IN THE FASTESTGROWING SEGMENT OF THE US MARKETTRUCKS AND WHILE THEY HAVE GOTTEN LEANER SINCE THEIR TOTALVEHICLE SHARE STARTED TO SLIP IN 1991 JAPANESE AUTO MAKERS ARE PLAGUED AT HOME BY RECESSION OVERCAPACITY AND A BLOATED WORKFORCE THE JAPANESE WILL LOSE MARKET SHARE FOR THE YEAR SAYS J MICHAEL LOSH GM'S GROUP VICE PRESIDENT FOR SALES AND MARKETING THE ECONOMICS ARE AGAINST THEM EVEN EXECUTIVES OF JAPANESE CAR COMPANIES WON'T BOLDLY DECLARE THAT THE WORST IS OVER WE ARE TRYING TO GAIN BACK WHAT WE LOST SAYS KAZUO SONOGUCHI PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MAZDA MOTOR OF AMERICA INC BUT THE COMPETITION IS SO STRONG THAT IT'S TOO EARLY TO SAY THE JAPANESE ARE BACK JAPANESE AUTO MAKERS OWN 283 OF THE US CAR MARKET EXCLUDING TRUCKS WHERE THEY ARE WEAKEST THAT'S DOWN FROM THEIR PEAK OF 301 IN 1992 BUT UP SIGNIFICANTLY FROM THEIR 1980 CARMARKET SHARE OF 197 IN THE FIRST QUARTER JAPANESE MAKES ACCOUNTED FOR 132 OF THE LIGHTTRUCK MARKET DOWN FROM 137 A YEAR EARLIER IT'S TOO EARLY TO SAY THAT THE JAPANESE WILL BOUNCE BACK TO LEVELS THEY HAD SAYS RICHARD S RECCHIA EXECUTIVE VICE PRESIDENT OF MITSUBISHI'S US SALES ARM BUT IT WAS ALSO WAY TOO EARLY TO COUNT US OUT SIX MONTHS AGO 9404200131 940420 WHO'S NEWS SCOTT PAPER SELECTS OUTSIDER DUNLAP TO SUCCEED LIPPINCOTT AS TOP EXECUTIVE BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL SCOTT PAPER CO ENDED ITS NEARLY FIVEMONTH SEARCH FOR A NEW TOP EXECUTIVE NAMING AN OUTSIDER TO ITS TOP POST FOR THE FIRST TIME IN THE COMPANY'S 115YEAR HISTORY THE PHILADELPHIA COMPANY'S BOARD TAPPED ALBERT J DUNLAP 56 YEARS OLD TO BECOME CHAIRMAN AND CHIEF EXECUTIVE OFFICER EFFECTIVE IMMEDIATELY MR DUNLAP HAS EXTENSIVE INTERNATIONAL EXPERIENCE IN A NUMBER OF MAJOR CONSUMER PAPER AND FORESTPRODUCTS COMPANIES MOST RECENTLY HE HAS BEEN CHIEF EXECUTIVE AND MANAGING DIRECTOR OF CONSOLIDATED PRESS HOLDINGS AN AUSTRALIAN TELEVISION MAGAZINE PUBLISHING CHEMICAL AND TIMBER COMPANY MR DUNLAP SUCCEEDS PHILIP E LIPPINCOTT 58 SCOTT'S CHIEF EXECUTIVE FOR THE PAST 12 YEARS AND A COMPANY EMPLOYEE FOR 34 YEARS MR LIPPINCOTT SAID LAST NOVEMBER HE INTENDED TO RETIRE ON APRIL 1 AND THE COMPANY LAUNCHED A SEARCH FOR A SUCCESSOR MR DUNLAP JOINS THE PAPER AND CONSUMERPRODUCTS COMPANY AT A CRUCIAL TIME WORLDWIDE OVERCAPACITY IN ITS PAPER MARKETS HAS SAPPED EARNINGS AND FORCED RESTRUCTURINGS AT SCOTT IN THE 1993 FOURTH QUARTER SCOTT RECORDED A 381 MILLION CHARGE AND SAID IT WOULD SLASH 8300 JOBS OR 25 OF ITS WORK FORCE OF THAT NUMBER ABOUT 2000 HAVE ALREADY BEEN DISMISSED IN A SENSE THE CUTS HAVE CLEARED THE DECKS FOR MR DUNLAP BUT HE STILL FACES SEVERAL CHALLENGES I UNDERSTAND HE'S VERY MUCH A NUTS AND BOLTS RESULTSORIENTED MANAGER SAID CHIP DILLON AN ANALYST WITH SALOMON BROTHERS INC AND THAT'S JUST WHAT THIS COMPANY NEEDS RIGHT NOW SEPARATELY SCOTT REPORTED SLUGGISH FIRSTQUARTER RESULTS FIRSTQUARTER EARNINGS DECLINED 44 TO 252 MILLION OR 34 CENTS A SHARE FROM 452 MILLION OR 61 CENTS A SHARE IN THE YEAREARLIER PERIOD THE YEAREARLIER FIGURES WERE BOOSTED BY ONETIME GAINS TOTALING 217 MILLION OR 29 CENTS A SHARE RELATED TO CHANGES IN INCOMETAX ACCOUNTING DESPITE A SLIGHT GAIN IN OPERATING PROFIT MR LIPPINCOTT SAID THE ECONOMY SUGGESTS THAT WE CANNOT COUNT ON MUCH HELP FROM THE MARKETPLACE THIS YEAR AND MUST FOCUS ON IMPROVED PRODUCTIVITY SALES DECLINED 43 TO 11 BILLION FROM 115 BILLION IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE SCOTT CLOSED AT 3775 UNCHANGED SCOTT PAPER FOUNDED IN 1879 HAS LONG RELIED ON LOYAL SOLDIERS FROM WITHIN TO RUN THE COMPANY ONCE BEFORE IN 1979 SCOTT APPEARED READY TO NAME AN OUTSIDER CHIEF EXECUTIVE HIRING MORGAN V HUNTER A FORMER RJ REYNOLDS EXECUTIVE AS PRESIDENT AND CHIEF OPERATING OFFICER BUT MR HUNTER'S TENURE LASTED ONLY 18 MONTHS AND HE DEPARTED BEFORE REACHING THE CHIEF EXECUTIVE'S POST AT THE TIME OBSERVERS BELIEVED THAT MR HUNTER FAILED TO PENETRATE SCOTT'S CORPORATE CULTURE MR LIPPINCOTT BECAME CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN CONTRAST TO MR HUNTER'S EXPERIENCE MR DUNLAP WON'T HAVE TO FACE A GROOMING PERIOD HE HAS ALSO AGREED TO INVEST 1 MILLION OF HIS OWN MONEY IN THE COMPANY'S CORPORATE STOCK AND ACCORDING TO ANALYSTS HAS AN INCENTIVELADEN COMPENSATION AGREEMENT THE COMPANY SAID MR DUNLAP WASN'T AVAILABLE TO COMMENT PRIOR TO WORKING IN AUSTRALIA MR DUNLAP WAS CHAIRMAN AND CHIEF EXECUTIVE OF SIR JAMES GOLDSMITH'S GLOBAL HOLDINGS HE IS A GRADUATE OF THE US MILITARY ACADEMY AND A FORMER PARATROOPER 9404200130 940420 TECHNOLOGY & HEALTH GE LIGHTING UNIT TO UNVEIL IN EUROPE ENERGYSAVING LAMP NEW YORK GE LIGHTING PLANS TO INTRODUCE IN EUROPE TODAY A NEW ENERGYSAVING LAMP THAT USES A HIGHFREQUENCY MAGNETIC FIELD TO PRODUCE LIGHT BUT THAT STILL FITS INTO EXISTING SOCKETS GE LIGHTING A DIVISION OF GENERAL ELECTRIC CO FAIRFIELD CONN SAID THE LAMP IN EUROPE CONSUMES ONLY 23 WATTS TO PRODUCE LIGHT SIMILAR TO A 100WATT INCANDESCENT REFLECTOR LAMP OR ABOUT A 75 SAVINGS IN ENERGY THE ELECTRONIC LIGHT BULB WHICH LASTS ABOUT 10 TIMES LONGER THAN THE STANDARD INCANDESCENT LAMP WILL BE IMMEDIATELY AVAILABLE TO COMMERCIAL AND INDUSTRIAL MARKETS IN EUROPE GE EXPECTS TO BEGIN SELLING IT COMMERCIALLY IN THE US IN THE FOURTH QUARTER AND TO US CONSUMERS NEXT YEAR JOHN BREEN VICE PRESIDENT OF TECHNOLOGY FOR GE LIGHTING SAID THE LAMPS INITIALLY WILL SELL FOR ABOUT 20 BUT ADDED IF YOU LOOK AT IT AS ENERGY SAVED OVER THE LIFE OF THE PRODUCT IT WILL SAVE THE CUSTOMER ABOUT 40 IN ENERGY COSTS COMPARED TO AN INCANDESCENT BULB HE SAID THE PERUNIT PRICE IS EXPECTED TO COME DOWN FAIRLY RAPIDLY AS VOLUME INCREASES AND TECHNOLOGY IMPROVES THE GE LAMP SOLD UNDER THE NAME GENURA USES AN INDUCTION TECHNOLOGY THAT GENERATES A HIGHFREQUENCY MAGNETIC FIELD TO PRODUCE LIGHT INCANDESCENT BULBS PRODUCE LIGHT FROM A HEATED FILAMENT THE COMPANY HAS BEEN WORKING ON THE TECHNOLOGY SINCE 1970 BUT ONLY IN THE LAST NINE MONTHS ACTIVELY UNDERTOOK DEVELOPMENT OF THE PRODUCT SAID DR BREEN A GE SPOKESMAN SAID THAT ALTHOUGH OTHER COMPANIES HAVE BEEN WORKING ON THE TECHNOLOGY HE DOESN'T BELIEVE THIS TYPE OF LAMP IS CURRENTLY BEING SOLD IN 1992 INTERSOURCE TECHNOLOGIES INC A SMALL DEVELOPMENTSTAGE TECHNOLOGY COMPANY IN SUNNYVALE CALIF ANNOUNCED ITS INTENTION TO BRING SUCH A LAMP TO MARKET IN 1993 PIERRE VILLERE FOUNDER AND VICE CHAIRMAN SAID HIS COMPANY WILL BE INTRODUCING THE SOCALLED ELAMP INTO THE MARKETPLACE IN THE NEXT FEW MONTHS GE STOCK ROSE 625 CENTS OR 07 TO CLOSE AT 9550 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9404200129 940420 TEXAS JOURNAL DOES DALLAS NEED A NEW SPORTS ARENA IT MIGHT OR IT RISKS LOSING BOTH THE STARS AND THE MAVERICKS BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS IS BEHIND AND TIME IS RUNNING OUT THE CITY'S PROFESSIONAL SPORTS TEAMS AT LEAST THE TWO THAT ACTUALLY HAVE A DALLAS ADDRESS THE HOCKEY STARS AND BASKETBALL MAVERICKS ARE DISENCHANTED WITH 14YEAROLD REUNION ARENA DALLAS LEADERS NOW HAVE ONE CHANCE TO MAKE THE TEAMS HAPPY AND IF THEY FAIL THEY RISK LOSING THE FRANCHISES TO SUBURBAN ALTERNATIVES DALLAS APPEARS TO BE AT A CROSSROADS WITH ITS SPORTS FRANCHISES SAYS MARC GANIS PRESIDENT OF SPORTSCORP LTD A CHICAGO SPORTSFACILITYDEVELOPMENT CONCERN MORE THAN CIVIC PRIDE IS AT STAKE THIS IS BIGLEAGUE SPORTS AND BIGLEAGUE BUCKS THE STARS ALONE PUMP NEARLY 50 MILLION INTO THE DALLAS ECONOMY ACCORDING TO STATE COMPTROLLER'S OFFICE ESTIMATES THE CITY'S DIRECT TAKE FROM THE MAVERICKS' AND STARS' HOME GAMES INCLUDING THE FEES THE TEAMS PAY TO USE THE ARENA AND THE CITY'S SHARE OF CONCESSION SALES TOTALS 38 MILLION A YEAR MORE THAN THE ANNUAL OPERATING EXPENSES FOR REUNION ARENA BUT THE STARS AND MAVERICKS ARGUE THAT THEY NEED A NEW ARENA TO STAY FINANCIALLY COMPETITIVE IN THEIR RESPECTIVE LEAGUES THOUGH THE STARS' MANAGEMENT SAYS IT IS COMMITTED TO DALLAS THE TEAM PRACTICES IN IRVING AND RECENTLY GAINED ZONING APPROVAL THERE FOR A NEW RINK SOME IRVING LEADERS SAY THE TEAM IS LOOKING TO MOVE ITS CORPORATE HEADQUARTERS THERE AS WELL AND THAT IRVING HOME TO THE DALLAS COWBOYS IS COOKING UP PLANS FOR A NEW ARENA TO ATTRACT THE STARS AND THE MAVERICKS THREE POTENTIAL SITES ALREADY HAVE BEEN CHOSEN ONE NEAR TEXAS STADIUM AS FOR THE MAVERICKS THEY CERTAINLY DON'T FEEL TETHERED TO DALLAS TEAM OWNER DON CARTER IS HELPING TO FINANCE A STUDY EXPLORING THE FEASIBILITY OF A 100 MILLION 20000SEAT ARENA IN LEWISVILLE 20 MILES NORTH OF DOWNTOWN DALLAS DALLAS OF COURSE ISN'T ABOUT TO GIVE UP A TASK FORCE FORGED BY THE GREATER DALLAS CHAMBER THE INTERNATIONAL SPORTS COMMISSION THE CENTRAL DALLAS ASSOCIATION AND THE CONVENTION AND VISITORS BUREAU IS STUDYING THE CITY'S OPTIONS BUT WHAT ARE THOSE OPTIONS THERE AREN'T MANY JUST FOUR AND EACH CARRIES A VERY DIFFERENT PRICE REUNION WAS ONCE A FINE ARENA AND STILL IS MANY ARGUE IN ITS EARLY DAYS IT WAS A TOPFLIGHT FACILITY THAT HELPED DALLAS BRING TO TOWN AN EXPANSION NATIONAL BASKETBALL LEAGUE TEAM AND IT CERTAINLY HELPED LURE THE DALLAS STARS LAST YEAR WHEN THAT TEAM WENT HUNTING FOR A NEW CITY BUT BY TODAY'S STANDARDS REUNION OPENED IN 1980 IS WANTING IT IS TOO SMALL SEATING JUST 17000 AND HAS NONE OF THE MONEYMAKING AMENITIES TEAMS DEMAND IN THIS ERA OF ESCALATING PLAYER SALARIES IT HAS NO LUXURY SUITES OR CLUB SEATS THERE ARE NO PRIVATE CLUBS OR RESTAURANTS AND IT LACKS THE EXPENSIVE OFFICE SPACE MANY COMPANIES AND INDIVIDUALS LIKE TO RENT FOR BRAGGING PURPOSES BUT THAT'S NOT TO SAY THE OLD PLACE CAN'T BE SALVAGED AS PART OF ITS UNDERTAKING THE SPORTS ARENA TASK FORCE IS CONSIDERING A PLAN THAT WOULD INJECT 35 MILLION TO 40 MILLION INTO A REUNION ARENA MAKEOVER THAT MONEY WOULD ADD 35 TO 40 LUXURY SKYBOXES TO THE FACILITY INCREASE THE NUMBER OF RESTROOMS AND EXPAND THE COMMON AREA TO ALLOW FOR RESTAURANTS AND INCREASED CONCESSION SPACE BUT IS THAT ENOUGH PROBABLY NOT IN FACT JOHN A CRAWFORD THE TASKFORCE CHAIRMAN NOTES THAT REVAMPING REUNION APPEARS THE LEAST LIKELY OPTION ASIDE FROM DOING NOTHING THE BASIC PROBLEM REUNION'S SEATING CAPACITY CAN'T BE EXPANDED MUCH BEYOND ITS CURRENT LEVEL AND BOTH THE STARS AND MAVERICKS DEMAND AN ARENA THAT SEATS BETWEEN 20000 AND 22000 FANS BASED ON THE AVERAGE TICKET PRICE OF A STARS GAME MOST OF WHICH HAVE BEEN SELLOUTS THIS YEAR A 5000SEAT INCREASE WOULD BOOST TICKET REVENUE BY ABOUT 6 MILLION OVER A SEASON OF 41 HOME DATES A HALFDOZEN POSTSEASON AND A FEW PRESEASON GAMES COULD TACK ON ANOTHER 1 MILLION OR SO SIMILARLY WHILE 40 SKYBOXES ARE BETTER THAN NONE IT'S STILL LESS THAN HALF OF THE 100 THAT WOULD BE PUT INTO A NEW ARENA AND SKYBOXES MEAN BIG MONEY MR GANIS NOTES THAT THE TYPICAL SKYBOX SELLS FOR ABOUT 100000 A YEAR WHICH GIVES THE HOLDER ACCESS TO ALL EVENTS IN THIS CASE 40 SKYBOXES COULD GENERATE ROUGHLY 4 MILLION ANNUALLY 100 SKYBOXES 10 MILLION THE REVENUE TYPICALLY IS SPLIT BETWEEN THE ARENA'S OPERATOR THE CITY OF DALLAS AND ITS SPORTS TENANTS RENOVATIONS OFTEN DON'T WORK IN THE LONG RUN BECAUSE THERE'S ONLY SO MUCH YOU CAN DO TO AN EXISTING ARENA SAYS MR GANIS THEY TEND TO BE TEMPORARY SOLUTIONS INSTEAD OF THE 20YEAR ANSWER FOR DALLAS THIS IS THE MOSTLIKELY OPTION AND THE ONE THE TEAMS ARE PUSHING FOR THAT'S BECAUSE A NEW FACILITY PROVIDES AN OPPORTUNITY TO INCLUDE WHAT STARS PRESIDENT JIM LITES CALLS ALL THE BELLS AND WHISTLES OF A MODERN SPORTS ARENA AS NOW ENVISIONED A NEW ARENA WOULD COST DALLAS 100 MILLION TO 125 MILLION AND WOULD INCLUDE 100 SKYBOXES AS WELL AS RESTAURANTS AND MORE CONCESSION SPACE ALSO POSSIBLE CLUB SEATS WHICH PROVIDE SUCH PERKS AS WAITER SERVICE PARKING PRIVILEGES AND ACCESS TO A PRIVATE CLUB ON SITE SUCH SEATS CAN'T BE EASILY ADDED TO REUNION BECAUSE OF SPACE CONSTRAINTS WHILE THESE CLUB SEATS WHICH GO FOR ABOUT 10000 ANNUALLY ARE LESS EXPENSIVE THAN SKYBOXES THEY CAN GENERATE FAR GREATER TOTAL REVENUE FOR EVERY SKYBOX A NEW ARENA MIGHT HAVE 12 TO 40 CLUB SEATS TRANSLATING INTO ANNUAL INCOME OF AS MUCH AS 40 MILLION NEARLY TRIPLE THE MAVERICKS' YEARLY TEAM PAYROLL A NEW ARENA THOUGH FACES MANY HURDLES AMONG THE ISSUES TO CONTEND WITH LOCATION FINANCING AND THE INCREASED TRAFFIC AND NOISE AND WHAT DO YOU DO WITH REUNION ARENA AS FOR LOCATION THE TASK FORCE HAS NARROWED IT DOWN TO ABOUT SIX POSSIBLE SITES FOUR OF WHICH ARE DOWNTOWN THE OTHER TWO FAIR PARK AND PINNACLE PARK ARE JUST OUTSIDE OF DOWNTOWN IN TERMS OF FINANCING THERE ARE A JILLION DIFFERENT WAYS TO APPROACH IT AND WE HAVEN'T EVEN BEGUN TO CONSIDER THEM SAYS MR CRAWFORD SAN ANTONIO AND ARLINGTON IMPOSED HALFCENT SALES TAXES TO HELP FUND THE ALAMODOME AND THE BALLPARK AT ARLINGTON DALLAS HOWEVER HAS REACHED ITS LEGAL TAX MAXIMUM THE CITY CAN'T IMPOSE ANY NEW TAXES WITHOUT APPROVAL FROM THE STATE LEGISLATURE BUT LEGISLATIVE APPROVAL IS SOMETHING WE'RE ALREADY WORKING ON JUST IN CASE WE DECIDE ON THAT ROUTE MR CRAWFORD SAYS AND REUNION ARENA ONE POSSIBILITY IS TO USE IT AS A PRACTICE FACILITY FOR THE STARS AND THE MAVERICKS BUT THAT WOULD MAKE IT AN EXPENSIVE PLACE TO PRACTICE THERE ARE TWO OTHER KEY QUESTIONS CAN THE STARS AND MAVERICKS GET ALONG IN AN ARENA AND WHAT HAPPENS IF THE MAVERICKS MOVE AND THE STARS STAY IN DALLAS THOUGH THE TWO TEAMS SHARE AN ARENA NOW THEIR RELATIONSHIP HAS BEEN STRAINED AT TIMES MOST SPORTSFACILITY ANALYSTS NOTE THAT A SUCCESSFUL ARENA NEEDS BOTH TEAMS AS TENANTS TO SUCCEED THEY SAY THE ARENA MUST BOOK ABOUT 200 DATES A YEAR THE MAVERICKS AND STARS GO A LONG WAY TOWARD REACHING THIS GOAL TOGETHER THEY ACCOUNT FOR ABOUT 100 DATES A YEAR TEXAS IS THE BIRTHPLACE OF THE DOMED STADIUM DALLAS THOUGH HAS NEVER HAD ONE THE CITY HAS LONG TOYED WITH THE IDEA OF BUILDING A DOME IN AN EFFORT TO LURE BACK THE COWBOYS FROM IRVING ASIDE FROM RECLAIMING THE COWBOYS A DOME WHICH MOST ESTIMATE WOULD COST MORE THAN 200 MILLION WOULD ALLOW DALLAS TO COMPETE FOR SUCH BIG EVENTS AS THE SUPER BOWL THE NCAA FINAL FOUR BASKETBALL TOURNAMENT AND DEMOCRATIC AND REPUBLICAN NATIONAL CONVENTIONS ALL OF WHICH REQUIRE SEATING FOR LARGER CROWDS THAN REUNION ARENA CAN ACCOMMODATE BUT THE DOME ISSUE APPEARS ACADEMIC AT LEAST FOR NOW TO EVEN JUSTIFY ONE MR CRAWFORD SAYS WE'D HAVE TO GET THE COWBOYS AWAY FROM IRVING THAT ISN'T LIKELY THE COWBOYS PUT IRVING ON THE MAP IRVING LEADERS LIKE TO POINT OUT THAT BECAUSE OF THE COWBOYS' SUCCESSES FORTUNE 500 COMPANIES THAT ONCE CLAIMED DALLAS AS AN ADDRESS NOW CLAIM IRVING IRVING ISN'T GOING TO LET GO OF THE COWBOYS SAYS DAN MAHONEY EXECUTIVE DIRECTOR OF IRVING'S ECONOMIC DEVELOPMENT FOUNDATION MANY CITY LEADERS SAY THAT IRVING IS CONSIDERING ENCLOSING TEXAS STADIUM OR POSSIBLY BUILDING A NEW DOMED FACILITY DALLAS LEADERS REALIZE THE DIFFICULTY IN REGAINING THE COWBOYS THEREFORE THE CITY IS EXPLORING THE DOME ISSUE ONLY PERIPHERALLY AND ONLY AS A LONGTERM POSSIBILITY AS MR CRAWFORD NOTES OUR FIRST PRIORITY IS TO THE STARS AND THE MAVERICKS AND EVEN IF DALLAS COULD LURE BACK THE COWBOYS WITH A NEW DOME THE CITY WOULD PROBABLY STILL HAVE TO SHELL OUT FOR A NEW ARENA AS WELL HOCKEY AND BASKETBALL ARE BETTER SUITED TO MORE INTIMATE SETTINGS AND BOTH THE STARS AND MAVERICKS REFUSE TO PLAY IN A CAVERNOUS DOME ALTHOUGH DOING NOTHING ISN'T PART OF THE TASKFORCE STUDY IT TOO IS AN OPTION AND AS ONE TASKFORCE MEMBER SAYS IT'S ONE THAT COULD BE CHOSEN FOR THEM BY THE TEAMS IF THE CITY TWIDDLES AROUND BY DOING NOTHING DALLAS SAVES MILLIONS OF DOLLARS IT WOULD OTHERWISE SPEND ON A NEW ARENA BUT CIVIC LEADERS DON'T FIND THIS VERY PALATABLE THE MAVERICKS AND STARS AFTER ALL CONTRIBUTE MANY MILLION OF DOLLARS TO THE CITY'S ECONOMY THROUGH TICKET SALES PARKING FEES CONCESSIONS HOTELROOM RENTALS AND ALL THE EXTRANEOUS ACTIVITY ASSOCIATED WITH SPORTING EVENTS THE LOSS OF THE DIRECT MONEY WOULD AT THE LEAST HAMPER REUNION'S OPERATIONS WHILE THE CITY'S HOTEL/MOTEL TAX COVERS THE ARENA'S DEBT OBLIGATIONS THE CITY RELIES ON SPORTING EVENTS AND CONCERTS TO PAY THE DAYTODAY BILLS FOR THE ARENA WHICH HAD OPERATING EXPENSES OF 35 MILLION FOR THE FISCAL YEAR ENDED SEPT 30 TAKE AWAY THE NEARLY 4 MILLION THAT THE TEAMS CONTRIBUTE DIRECTLY SAYS MR GANIS AND IT SEEMS REUNION WOULD BE HARD PRESSED TO SURVIVE 9404200128 940420 CANADIAN FIRMS' SHIPMENTS DROP OTTAWA CANADIAN MANUFACTURERS' SHIPMENTS DECLINED 03 IN FEBRUARY FROM JANUARY BUT THEIR NEW ORDERS ROSE 08 STATISTICS CANADA A GOVERNMENT AGENCY SAID FEBRUARY WAS THE THIRD CONSECUTIVE MONTH IN WHICH SHIPMENTS DROPPED THE FEBRUARY DECLINE RESULTED PARTLY FROM A TEMPORARY SHUTDOWN OF SOME AUTO PLANTS FOR MODEL CHANGES WOOD SHIPMENTS FELL AS A RESULT OF A LABOR DISPUTE THAT HALTED OPERATIONS AT WEST COAST PORTS FOR TWO WEEKS 9404200127 940420 STRIKE DRAINING TEAMSTERS FUND AT A RAPID RATE UNION'S EXECUTIVE BOARD TO MEET NEXT WEEK TO DEAL WITH CRISIS BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE TEAMSTERS UNION IS QUICKLY RUNNING OUT OF MONEY A CRISIS THAT COULD WEAKEN ITS POSITION IN A STRIKE AGAINST 20 TRUCKING COMPANIES UNION LOCALS ACROSS THE COUNTRY YESTERDAY RECEIVED ABOUT 14 MILLION IN STRIKE BENEFITS THE FIRST PAYMENT TO THE ROUGHLY 70000 IDLED TRUCKERS AND DOCK WORKERS SINCE THE STRIKE BEGAN TWO WEEKS AGO WITH THAT SINGLE PAYMENT THE TEAMSTERS VIRTUALLY EXHAUSTED THEIR STRIKE FUND NEXT WEEK THE TEAMSTERS WILL BEGIN DRAWING DOWN A 50 MILLION LINE OF CREDIT FROM AFLCIO AFFILIATED UNIONS A SUPPLY OF CASH THAT WOULD PAY FOR STRIKE BENEFITS FOR ABOUT 3 1/2 WEEKS AFTER THAT THE UNION HAS ANOTHER CREDIT LINE FROM UNION LABOR LIFE INSURANCE CO FOR 30 MILLION AGAINST WHICH THE TEAMSTERS HAVE PLEDGED THEIR HEADQUARTERS BUILDING ACROSS FROM THE US CAPITOL THE TASK OF REPAYING ANY BENEFITS WHICH RUN 200 WEEKLY FOR EACH STRIKER IS CERTAIN TO BE A HUGE STRAIN ON THE UNION LAST MONTH THE UNION RANK AND FILE OVERWHELMINGLY REJECTED PRESIDENT RON CAREY'S CALL TO RAISE UNION DUES 25 AS A RESULT THE INTERNATIONAL CONTINUES TO BLEED MONEY WITH THE GENERAL FUND NOW DOWN TO 50 MILLION FROM 150 MILLION TWO YEARS AGO THE UNION IS PAYING STRIKE BENEFITS TO MORE THAN 1000 MEMBERS IN 53 STRIKES OTHER THAN THE TRUCKERS' WALKOUT INCLUDING PARTICIPANTS IN A LONGRUNNING FIGHT AGAINST DIAMOND WALNUT GROWERS NEXT WEEK THE UNION'S EXECUTIVE BOARD WILL HOLD ITS FIRST MEETING SINCE THE DUES VOTE TO DISCUSS THE FINANCIAL CRISIS OFFICIALS AT THE UNION AREN'T PREDICTING HOW THEY MIGHT MOVE TO EXTRICATE THEMSELVES FROM THE FINANCIAL BIND A TEAMSTERS SPOKESWOMAN SAID THE STRIKE FUND'S PALTRY HOLDINGS HAD NO EFFECT ON THE DECISION TO CALL A STRIKE AGAINST THE SOCALLED LESSTHANTRUCKLOAD CARRIERS THE ISSUES HERE ARE VERY BASIC SAID THE SPOKESWOMAN NANCY STELLA WE WERE HANDED A BEST AND FINAL OFFER' THAT WAS SIMPLY UNACCEPTABLE STILL THE UNION'S WEAK FINANCIAL CONDITION PROVIDES A HARSH BACKDROP TO THE TALKS WHICH CONTINUED WITH NO SIGNIFICANT PROGRESS THE UNION AND COMPANY AGREED TO USE SUBCOMMITTEES TO NEGOTIATE THE MOST DIVISIVE ISSUES AROUND THE CLOCK BUT THE UNION SAID IN A STATEMENT THAT WIDE GAPS ARE DIVIDING THE PARTIES INDUSTRY ANALYSTS CONTEND THAT THE FIRST WEEK OF A STRIKE USUALLY HITS INDUSTRY HARDER BECAUSE COMPANIES IMMEDIATELY LOSE REVENUE BUT ONCE UNIONS HAVE TO DRAW ON THEIR STRIKE FUNDS TO PAY BENEFITS THE PAIN BECOMES MORE BALANCED THE TEAMSTERS' FINANCIAL STRUGGLES STEM FROM A GAME OF ONEUPSMANSHIP AMONG UNION LEADERS IN 1991 WHEN THE BENEFITS WERE RAISED TO 200 A WEEK FROM 55 MR CAREY SUPPORTED THE HIGHER PAYOUTS BUT NO MECHANISM WAS PUT IN PLACE TO PAY FOR THE BIGGER BENEFITS 9404200126 940420 CANADIAN WAGE SETTLEMENTS OTTAWA MAJOR CANADIAN WAGE SETTLEMENTS REACHED IN FEBRUARY PROVIDED ON AVERAGE FOR NO INCREASE THE FEDERAL LABOR DEPARTMENT SAID THE FIGURE WAS THE LOWEST RECORDED SINCE 1978 WHEN THE DEPARTMENT BEGAN COLLECTING THE DATA ABOUT 75 OF EMPLOYEES COVERED BY THE FEBRUARY SETTLEMENTS WERE AFFECTED BY WAGE ROLLBACKS OR WAGE FREEZES COMPARATIVELY FEW AGREEMENTS WERE REACHED IN FEBRUARY ONE OF THE LARGEST INCLUDED 7040 ONTARIO GROCERY STORE EMPLOYEES WHO ACCEPTED AN AVERAGE ANNUAL WAGE ROLLBACK OF 31 OVER THE 41 MONTHS OF THE CONTRACT 9404200125 940420 MARKETING & MEDIA CRITICS SEE THE BEAST IN DISNEY'S BEAUTY' BUT WILL IT MATTER BROADWAY SHOW ALREADY HITS ONE BOXOFFICE RECORD EASY TARGET TOURISTS KIDS BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL WHEN WALT DISNEY CO ANNOUNCED PLANS TO MOUNT A BROADWAY MUSICAL VERSION OF BEAUTY AND THE BEAST SKEPTICS SNIPPED THAT THE COMPANY WOULDN'T BE ABLE TO CONTROL THE NEW YORK THEATER CRITICS A POWERFUL CONTINGENT FREQUENTLY HELD RESPONSIBLE FOR KILLING SHOWS THEATER CRITICS LARGELY DUMPED ON DISNEY'S FIRST VENTURE ON THE GREAT WHITE WAY BUT IT PROBABLY WON'T MATTER MUCH AT ALL DISNEY SAID LATE YESTERDAY THAT IT BROKE THE RECORD FOR BOXOFFICE SALES THE DAY AFTER A SHOW'S OPENING TOPPING THE 494897 TAKE POSTED BY TOMMY LAST APRIL IT'S POSSIBLE DISNEY SAID THAT THE MUSICAL WOULD RIVAL THE ALLTIME SINGLE DAY RECORD CHARTED LAST JUNE WHEN TOMMY SOLD MORE THAN 578000 WORTH OF TICKETS THE DAY AFTER THE TONY AWARDS THE FINAL TOTAL WILL BE ANNOUNCED TODAY WHILE THE REVIEWS OF MONDAY'S OPENING WERE MOSTLY NEGATIVE THEY WEREN'T VICIOUS AND AREN'T LIKELY TO DERAIL DISNEY'S HOPES FOR A HIT THAT CATERS MOSTLY TO CHILDREN AND TOURISTS THE KIND OF FOLKS WHO DON'T READ REVIEWS BUT LOVE SHOWS LIKE CATS BEAUTY AND THE BEAST AT A STATED COST OF 12 MILLION IS THE MOST EXPENSIVE MUSICAL IN BROADWAY HISTORY DISNEY HAS PLAYED THE BROADWAY GAME BY ITS OWN RULEBOOK MAKING WAVES IN NEW YORK BY ELECTING TO HIRE GRADUATES OF ITS THEMEPARK PRODUCTIONS TO DIRECT AND CHOREOGRAPH AMONG OTHER FUNCTIONS MICHAEL EISNER DISNEY'S CHAIRMAN AND CHIEF EXECUTIVE YESTERDAY SAID THE COMPANY IS CONSIDERING CHANGING ANOTHER LONGSTANDING BROADWAY TRADITION BEGINNING IN SEPTEMBER IT WILL QUITE LIKELY BEGIN EVENING SHOWS OF BEAUTY AND THE BEAST AT 730 PM 30 MINUTES BEFORE THE STANDARD CURTAIN TIME DISNEY DID WIN SOME UPBEAT NOTICES INCLUDING ONES FROM THE SYNDICATED COLUMNIST LIZ SMITH AND GOOD MORNING AMERICA CRITIC JOEL SIEGEL MOST HOWEVER ECHOED THE WORDS OF THE ASSOCIATED PRESS'S MICHAEL KUCHWARA WHO SAID THE FILM HAS MADE A DISAPPOINTING TRANSITION TO THE STAGE USA TODAY'S DAVID PATRICK STEARNS COMPARED IT TO CHEESY SUMMER STOCK IN THE NEW YORK TIMES TODAY A FULLPAGE AD FOR THE MUSICAL FEATURES A GIANT QUOTE CREDITED TO DAVID RICHARDS WHO AS THE TIMES'S THEATER CRITIC IS REGARDED AS THE MOST IMPORTANT REVIEWER IT READS THE ASTONISHMENTS RARELY CEASE OMITTED FROM THE AD HOWEVER IS THE NEXT SENTENCE FROM MR RICHARDS'S REVIEW YET STRANGE AS IT MAY SOUND THAT'S THE VERY DRAWBACK OF BEAUTY AND THE BEAST' HE WENT ON TO LAMENT THAT NOTHING HAS BEEN LEFT TO THE IMAGINATION WE'RE DEALING IN A VERY SOPHISTICATED MARKET AND SOME PEOPLE ARE LOOKING FOR THINGS THAT THIS BEAUTY AND THE BEAST' WAS NOT EVER MEANT TO BE MR EISNER SAID SOME CRITICS SAID IN THEIR REVIEWS THAT THEY DIDN'T WANT TO PAN DISNEY'S MUSICAL BECAUSE OF THE COMPANY'S STATED FINANCIAL COMMITMENT TO HELP CLEAN UP THE RUNDOWN 42ND STREET AREA KNOWING THAT THE WHOLE ECONOMIC DEVELOPMENT OF NEW YORK CITY DEPENDS ON HOW THE CRITICS RESPOND TO DISNEY I AM A LITTLE NERVOUS ABOUT REVIEWING THE PLAY WROTE HOWARD KISSEL OF THE NEW YORK DAILY NEWS NONETHELESS MR KISSEL FOUND SOME DESCRIPTIVE WORDS CALLING THE SHOW MUNDANE AND MECHANICAL 9404200124 940420 PHILIP MORRIS POSTS EARNINGS ABOVE FORECASTS FIRSTQUARTER NET FELL 35 EXCLUDING 1993 CHARGE PRICE CUTS HURT PROFIT BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PHILIP MORRIS COS REPORTED BETTERTHANEXPECTED RESULTS FOR THE FIRST QUARTER BECAUSE OF STRONG INTERNATIONAL TOBACCO PROFITS AND SOLID VOLUME GAINS FOR MARLBORO CIGARETTES IN THE US PROFIT ROSE NEARLY 60 FROM A YEAR EARLIER WHEN AN ACCOUNTING CHARGE SHARPLY LOWERED EARNINGS EXCLUDING THE EFFECT OF THE 1993 CHARGE PHILIP MORRIS'S PROFIT FELL 35 TO 117 BILLION OR 134 A SHARE FROM 121 BILLION OR 138 A SHARE EARNINGS WERE DOWN BECAUSE OF THE DECREASED PROFITABILITY OF THE DOMESTIC TOBACCO BUSINESS FOLLOWING LAST YEAR'S PRICE CUTS NONETHELESS ANALYSTS SAID THAT SOLID GROWTH IN PHILIP MORRIS'S PREMIUM CIGARETTE BUSINESS LED TO A BETTERTHANEXPECTED QUARTER FOR THE TOBACCO UNIT AND THE COMPANY REVENUE ROSE 2 TO 155 BILLION PHILIP MORRIS'S STOCK ROSE 175 TO 51875 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE EARNINGS EXCEEDED THE CONSENSUS WALL STREET ESTIMATE BY NEARLY 10 CENTS A SHARE CORPORATIONS ROUTINELY MANAGE THEIR EARNINGS AND ANALYSTS SAID THAT PHILIP MORRIS CHOSE TO RELEASE A POSITIVE EARNINGS SURPRISE TO DEMONSTRATE THAT THE COMPANY WAS STILL A POWERFUL ECONOMIC FORCE AT A TIME OF UNPRECEDENTED ANTITOBACCO SENTIMENT THEY WANTED TO SEND A SIGNAL TO THE MARKET TO FOCUS ON THE FUNDAMENTALS OF THE COMPANY RATHER THAN THE NOISE COMING OUT OF WASHINGTON SAID GARY M BLACK AN ANALYST WITH SANFORD C BERNSTEIN & CO THE STRONG QUARTER CAUSED A NUMBER OF ANALYSTS TO RAISE THEIR ANNUAL ESTIMATES FOR PHILIP MORRIS TO BETWEEN 535 AND 545 A SHARE WHILE POSTING A LACKLUSTER PERFORMANCE IN ITS HUGE KRAFT DOMESTIC FOOD BUSINESS PHILIP MORRIS'S DOMESTIC TOBACCO SHOWED SIGNS OF IMPROVEMENT AND INTERNATIONAL TOBACCO PROFIT ROSE 17 IN THE COMPANY'S KEY DOMESTIC TOBACCO BUSINESS OPERATING PROFIT FELL NEARLY 25 THE RESULT OF THE PHILIP MORRISINITIATED PRICE CUTS STILL THE COMPANY EARNED 769 MILLION FROM SELLING CIGARETTES IN THE US THE HIGHEST QUARTERLY LEVEL SINCE THE PRICE CUTS DOMESTIC CIGARETTE VOLUME WAS UP 13 FROM THE 1993 QUARTER WHEN ORDERS WERE LOW BECAUSE OF EXCESSIVE INVENTORY LEVELS AT WHOLESALERS MARLBORO'S SHIPMENT VOLUME WAS UP 32 PHILIP MORRIS SAID THE PRICE CUTS WERE SUCCESSFUL WITH MARLBORO'S SHIPMENT SHARE GROWING 46 TO 26 FOR THE QUARTER THE COMPANY SAID ITS OVERALL MARKET SHARE WAS 46 UP FOUR PERCENTAGE POINTS FROM MARCH 1993 BEFORE THE COMPANY CUT PRICES ALL THE RHETORIC FROM WASHINGTON IS NOT REALLY IMPACTING CONSUMPTION AND IT PROBABLY WON'T SAID HOWARD PENNEY AN ANALYST AT MORGAN STANLEY KRAFT GENERAL FOODS CONTINUED TO STRUGGLE WITH NORTH AMERICAN FOOD PROFIT GAINING ONLY 27 THE RESULT OF PRICE CUTS AT KOOLAID AND OTHER BRANDS ACCORDING TO ANALYSTS MILLER BREWING CO PROFIT ROSE 11 ON VOLUME INCREASES OF NEARLY 6 BASED ON THE INCLUSION OF MOLSON RESULTS STILL PHILIP MORRIS STOCK IS TRADING AT DEPRESSED LEVELS ANALYSTS SAY MANAGEMENT'S GROWING FRUSTRATION WITH THE COMPANY'S DEPRESSED STOCK PRICE MAKES IT MORE LIKELY THAT PHILIP MORRIS WILL ATTEMPT A MAJOR SHARE BUYBACK PROGRAM OR A SPINOFF IN THE NEXT 12 MONTHS LAST WEEK PHILIP MORRIS DISCLOSED THAT ITS BOARD WAS STUDYING SEPARATING ITS FOOD AND TOBACCO BUSINESS AS A WAY TO INCREASE SHAREHOLDER VALUE WHILE ANALYSTS INITIALLY PLAYED DOWN THE POSSIBILITY OF A SPINOFF MR PENNEY OF MORGAN STANLEY SAID THAT PHILIP MORRIS EXECUTIVES CALLED AND WARNED HIM NOT TO DISMISS THE POSSIBILITY THEY ARE SERIOUS ABOUT DOING SOMETHING HE SAID MANAGEMENT IS VERY FRUSTRATED AND WILL DO SOMETHING TO ENHANCE VALUE IN THE NEXT 12 MONTHS ANALYSTS CONTINUE TO THINK THAT A MASSIVE SHARE REPURCHASE PROGRAM IS LIKELY IN THE QUARTER THE COMPANY REPURCHASED 47 MILLION SHARES AT A COST OF 253 MILLION ALREADY POSSIBILITY OF A BREAKUP HAS ANALYSTS TAKING A MORE POSITIVE VIEW OF THE COMPANY LAST WEEK LAWRENCE ADELMAN A DEAN WITTER REYNOLDS INC ANALYST UPGRADED PHILIP MORRIS TO A BUY ON THE PROSPECT OF A VALUEGENERATING BREAKUP 9404200123 940420 INTERNATIONAL SWEDISH UNEMPLOYMENT RATE STOCKHOLM THE OFFICIAL SWEDISH UNEMPLOYMENT RATE DECREASED TO 78 OF THE WORK FORCE IN MARCH FROM 83 IN FEBRUARY BUT ROSE FROM 71 IN MARCH 1993 ACCORDING TO SCB THE NATIONAL STATISTICS AGENCY THE DECLINE IN UNEMPLOYMENT CONTINUES THE DOWNWARD TREND SEEN SO FAR IN 1994 AS THE JOBLESS RATE FELL AN IDENTICAL 05 PERCENTAGE POINT BETWEEN JANUARY AND FEBRUARY EXCEPT FOR ONE MONTH THE OFFICIAL SWEDISH UNEMPLOYMENT RATE HAS FALLEN EVERY MONTH SINCE JULY 1993 WHEN THE RATE STOOD AT 96 9404200122 940420 DIGITAL FACES HOLDERS' SUIT BOSTON HOLDERS OF DIGITAL EQUIPMENT CORP PREFERRED SHARES SUED THE COMPUTER MAKER IN FEDERAL COURT SAYING THEY WERE MISLED INTO INVESTING IN THE ISSUE ONLY WEEKS BEFORE A HUGE LOSS WAS ANNOUNCED WHILE SHAREHOLDER SUITS FOLLOWING A DECLINE IN A COMPANY'S STOCK PRICE ARE COMMON THE TWO FILED YESTERDAY COULD PROVE EMBARRASSING BECAUSE THEY SUGGEST THAT DIGITAL HURRIED THE ISSUE INTO THE MARKET THE SUITS SEEK CLASSACTION STATUS FOR BOTH PREFERRED AND COMMON HOLDERS BOTH STOCKS HAVE FALLEN SHARPLY SINCE FRIDAY'S DISCLOSURE OF A FISCAL THIRDQUARTER LOSS FAR EXCEEDING ANALYSTS' EXPECTATIONS DIGITAL WHICH SOLD 400 MILLION OF THE PREFERRED SHARES LAST MONTH SEEMED TO HAVE RUSHED TO THE MARKET AHEAD OF THIRDQUARTER RESULTS SAID BARRY WILLMAN AN ANALYST WITH GOLDMAN SACHS & CO AS IT WAS A WEAK RESPONSE FORCED A SCALING BACK OF THE OFFERING FROM THE 500 MILLION DIGITAL HAD ORIGINALLY INTENDED TO SELL BRAD ALLEN DIGITAL'S DIRECTOR OF INVESTOR RELATIONS SAID THE COMPANY WASN'T AWARE OF THE DEPTH OF THE LOSS AT THE TIME OF THE OFFERING HE NOTED THE DISCLOSURE OF RESULTS WAS MOVED UP FROM APRIL 20 TO LAST FRIDAY AS SOON AS THE SIZE OF THE LOSS WAS APPARENT 9404200121 940420 ALDUS TO BUY IMAGE CLUB SEATTLE ALDUS CORP SAID IT SIGNED A DEFINITIVE AGREEMENT TO BUY IMAGE CLUB GRAPHICS INC A CALGARY ALBERTA SOFTWARE DEVELOPER AND CATALOG MARKETER FOR ABOUT 34 MILLION ALDUS A COMPUTER SOFTWARE CONCERN SAID IT BOUGHT ALL OF IMAGE CLUB'S SHARES ITS PRODUCT LINE MAILORDER CATALOG BUSINESS SOURCE CODE COPYRIGHTS AND TRADEMARKS THE COMPANY SAID IMAGE CLUB REPORTED REVENUE OF 23 MILLION CANADIAN DOLLARS US17 MILLION FOR 1993 9404200120 940420 INTERNATIONAL RUSSIAN CENTRAL BANKER ONCE SCORNED WINS NEW FRIENDS BY SLASHING INFLATION BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL ST PETERSBURG RUSSIA WRITTEN OFF IN THE WEST A SHORT TIME AGO AS A MONETARY NEOPHYTE RUSSIA'S TOP CENTRAL BANKER IS SUDDENLY AN OLD PRO ALL BECAUSE HE SLASHED INFLATION MORE THAN TWOTHIRDS FOR MONTHS VIKTOR GERASHCHENKO RUSSIA'S HEAVYSET CENTRAL BANK CHAIRMAN HAS PUT UP WITH ABUSE FROM WESTERN AND RUSSIAN ECONOMISTS BUT HERE IN ST PETERSBURG WHERE A TWODAY MEETING OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT ENDED YESTERDAY THERE WAS ONLY PRAISE FOR THE 57YEAROLD BANK CHIEF'S SUCCESS IN LIMITING RUSSIA'S INFLATION THE CENTRAL BANK SEEMS TO HAVE FOUND NEW RELIGION IN TERMS OF CONTROLLING CREDIT GUSHED LAWRENCE SUMMERS DEPUTY US TREASURY SECRETARY NOTING THAT RUSSIA'S INFLATION RATE FELL TO 87 IN MARCH FROM MONTHLY LEVELS OF ABOUT 30 LAST YEAR INTERNATIONAL MONETARY FUND DIRECTOR MICHEL CAMDESSUS GAVE MR GERASHCHENKO A SIMILAR PUBLIC BOOST LAST WEEK THIS ALL AMOUNTS TO A CONSIDERABLE RAVE CONSIDERING PAST ATTITUDES TREASURY OFFICIALS INCLUDING MR SUMMERS REFUSED EVEN TO MEET WITH MR GERASHCHENKO JUST A FEW MONTHS AGO VIEWING HIM AS A LOST CAUSE THEY BLAMED HIM FOR PUSHING RUSSIA TOWARD HYPERINFLATION BY PUMPING OUT ENDLESS SOURCES OF CHEAP CREDIT FOR STATE INDUSTRIES THE ATTACKS WERE OFTEN SCATHING A HIGHRANKING WESTERN OFFICIAL THIS YEAR REFERRED TO MR GERASHCHENKO IN PRIVATE AS AN ECONOMIC ZHIRINOVSKY A REFERENCE TO VLADIMIR ZHIRINOVSKY THE RUSSIAN PARLIAMENTARIAN AND ULTRANATIONALIST AND HARVARD UNIVERSITY'S JEFFREY SACHS A FORMER ECONOMICS ADVISER TO THE RUSSIAN GOVERNMENT SLAMMED MR GERASHCHENKO IN THIS NEWSPAPER AS PERHAPS THE WORST CENTRALBANK GOVERNOR IN HISTORY BUT PERCEPTIONS ARE SHIFTING AND MR GERASHCHENKO SEEMED TO ENJOY HIS NEW ROLE IN ST PETERSBURG WHERE HE WAS COHOST OF THE EBRD'S HUGE ANNUAL CONFERENCE I'M NEITHER THE WORST CENTRAL BANK CHAIRMAN IN HISTORY NOR THE BEST HE SAID SWIRLING A GLASS OF CHAMPAGNE AT A CROWDED COCKTAIL RECEPTION RATHER HE SAID HE'S CONTINUING TO JUGGLE WHAT HE CONSIDERS HIS TWIN RESPONSIBILITIES OF FIGHTING INFLATION BY CONTROLLING THE MONEY SUPPLY AND PREVENTING ECONOMIC COLLAPSE WHICH COULD PROVOKE CIVIL UNREST WE ARE MANEUVERING BETWEEN SCYLLA AND CHARYBDIS THE LEGENDARY GREEK MONSTERS THAT GUARDED THE STRAITS OF MESSINA SAID MR GERASHCHENKO A FLUENT ENGLISH SPEAKER WHO ONCE HEADED THE SOVIET STATE GOSBANK THE WORLD'S VIEW OF RUSSIA'S TOP BANKER MATTERS RUSSIA'S ABILITY TO ATTRACT LOANS AND DIRECT INVESTMENT DEPENDS IN LARGE PART ON THE CREDIBILITY OF ITS MONETARY POLICY AND OF ITS CENTRAL BANK CHIEF PLEASED WITH THE BANK'S RECENT ACTIONS THE IMF IS EXPECTED TODAY TO APPROVE A 15 BILLION LOAN FOR RUSSIA WHILE TOO SMALL BY ITSELF TO SET RUSSIA'S ECONOMY RIGHT THE LOAN COULD WELL BE A CATALYST FOR FURTHER LENDING AND INVESTMENT NO ONE IS SUGGESTING THAT MR GERASHCHENKO IS A BORNAGAIN RADICAL REFORMER IN THE MOLD OF HIS LONGTIME RIVAL FORMER FINANCE MINISTER BORIS FYODOROV THE CENTRAL BANK REMAINS RESISTANT TO CHANGE AND DOGGED BY ALLEGATIONS OF CORRUPTION AT MIDDLEMANAGEMENT LEVELS BUT IN TERMS OF MONETARY POLICY WHICH CAN MAKE OR BREAK RUSSIA'S BID TO AVOID HYPERINFLATION MR GERASHCHENKO SEEMS TO BE FOLLOWING A MOSTLY REFORMIST LINE EVEN MR SACHS CONCEDES THE SHIFT IT'S SURPRISING NEWS AND GOOD NEWS THAT GERASHCHENKO AND PRIME MINISTER VIKTOR CHERNOMYRDIN ARE MORE OR LESS CONTINUING THE POLICY THAT FYODOROV STARTED MR SACHS SAID IN THE PAST FOUR MONTHS WE HAVE REALLY WITNESSED A CHANGE OF BEHAVIOR WHY THE OLD STATE PLANNER IS DOING SO IS SOMETHING OF A MYSTERY SOME BELIEVE THE REAL CONVERT TO TIGHT MONETARY POLICY IS MR CHERNOMYRDIN SOME SUGGEST MR GERASHCHENKO IS TOEING THE LINE SIMPLY TO KEEP HIS JOB ANDERS ASLUND ANOTHER FORMER ECONOMIC ADVISER TO MOSCOW AND NOW A FELLOW AT THE WASHINGTONBASED BROOKINGS INSTITUTION SUSPECTS THAT MR GERASHCHENKO'S TRANSFORMATION REFLECTS HIS POLITICAL AGILITY HE'S POLITICALLY ASTUTE AND ECONOMICALLY INCOMPETENT SAID MR ASLUND DIRECTOR OF THE STOCKHOLM INSTITUTE OF EAST EUROPEAN ECONOMIES THE CENTRAL BANK HE SAID HAS REDUCED CREDITS SIMPLY BECAUSE DEMAND FOR LOANS HAS PLUMMETED WITH THE CENTRAL BANK'S DISCOUNT RATE NOW AT 175 A MONTH BORROWERS MUST PAY WELL IN EXCESS OF THE RATE OF INFLATION GERASHCHENKO IS SIMPLY ACTING VERY PASSIVELY ON MONETARY POLICY MR ASLUND SAID BUT ONE OFFICIAL OF A WESTERN LENDING AGENCY PAINTS A DIFFERENT PICTURE HE CONTENDS THAT IN CLOSED MEETINGS MR GERASHCHENKO ACTUALLY REFUSED A RECENT REQUEST FROM THE CHERNOMYRDIN GOVERNMENT FOR BILLIONS OF RUBLES IN ADDITIONAL CENTRAL BANK CREDITS THE GOVERNMENT BEGGED AND GERASHCHENKO SAID NO SAID THE OFFICIAL WHO REQUESTS ANONYMITY GERASHCHENKO HAS ALL ALONG BEEN MADE A SCAPEGOAT BY JEFFREY SACHS AND OTHERS WHO WANTED SOMEONE TO BLAME FOR RUSSIA'S ECONOMIC PROBLEMS THE WESTERN OFFICIAL SAID BUT ONCE GERASHCHENKO DECIDES TO STICK TO CERTAIN TARGETS HE DOES IT WITH NO DEVIATIONS EVEN MR FYODOROV THE FORMER FINANCE MINISTER WHO QUIT THE GOVERNMENT IN JANUARY WHILE WARNING OF AN ECONOMIC COUP NOW CONCEDES THAT HIS DIRE PREDICTIONS HAVEN'T BEEN BORNE OUT THE CENTRAL BANK IS TRYING TO DO SOME SENSIBLE THINGS MR FYODOROV SAID AT A ROUNDTABLE DISCUSSION IN ST PETERSBURG THE SITUATION DIDN'T GET WORSE AND THAT'S AN ACHIEVEMENT STILL MR FYODOROV COULDN'T RESIST POINTING OUT THAT MR GERASHCHENKO HAD FAILED TO SHOW UP AS PROMISED FOR THE PUBLIC DISCUSSION SOME PEOPLE ARE AFRAID TO BE HERE HE GIBED MR GERASHCHENKO FOR HIS PART IS UNDAUNTED HE WRYLY REFERRED TO HIMSELF AT A RECENT MOSCOW NEWS CONFERENCE AS THE WORLD'S WORST CENTRAL BANKER AND HE WON'T BACK AWAY FROM SPARRING WITH MR FYODOROV WHO HAS REPEATEDLY CALLED FOR THE BANK CHIEF'S RESIGNATION I DON'T CARE WHAT FYODOROV THINKS SAID MR GERASHCHENKO IT WAS FYODOROV WHO CARRIED OUT AN IRRESPONSIBLE POLICY LAST YEAR NOT PAYING FOR THINGS THAT THE GOVERNMENT HAD ORDERED FOR THIS YEAR MR GERASHCHENKO SAID HE BELIEVES RUSSIA CAN MEET ITS TARGET OF KEEPING INFLATION BELOW 10 A MONTH BUT HE IS CONCERNED ABOUT THE NEGATIVE FALLOUT FACTORY CLOSURES AND WIDESPREAD UNEMPLOYMENT WE CAN STICK TO THE TARGETS HE SAID BUT AT WHAT COST THE NEXT FEW MONTHS PROMISE TO POSE CRITICAL TESTS FOR MESSRS GERASHCHENKO AND CHERNOMYRDIN SCORES OF BIG ENTERPRISES WILL COME FORWARD ASKING FOR CHEAP RUBLE INFUSIONS TO STAY AFLOAT MR GERASHCHENKO ALREADY IS TALKING ABOUT DRASTICALLY REDUCING INTEREST RATES A MOVE SOME ECONOMISTS THINK IS FAR TOO HASTY GERASHCHENKO HAS BECOME FAR MORE ASSERTIVE IN DEALING WITH INFLATION SAID ROBERT HORMATS A GOLDMAN SACHS INTERNATIONAL VICE PRESIDENT WHO RECENTLY MADE THE ROUNDS OF MOSCOW OFFICIALDOM BUT HE'S NOT QUITE ALAN GREENSPAN YET 9404200119 940420 INTERNATIONAL RHONEPOULENC ACQUISITION BRUSSELS THE EUROPEAN UNION COMMISSION CLEARED THE TAKEOVER BY FRENCH CHEMICAL GIANT RHONEPOULENC SA OF DRUG AND MEDICAL INSTRUMENT PRODUCER COOPERATION PHARMACEUTIQUE FRANCAIS THE COMMISSION SAID IT CLEARED THE TAKEOVER BECAUSE IT WOULDN'T CREATE OR REINFORCE A DOMINANT POSITION ON ANY OF THE THREE PARTS OF THE FRENCH DRUG MARKETS AFFECTED UNDER EU LAW THE COMMISSION MUST REVIEW MERGER AND OTHER ACCORDS BETWEEN LARGE COMPANIES TO ENSURE THEY DON'T HARM COMPETITION WITHIN THE EU THE COMMISSION HAS THE POWER TO BLOCK OR ALTER AGREEMENTS THAT CREATE OR STRENGTHEN DOMINANT POSITIONS ON THE EU MARKET 9404200118 940420 CHEMPOWER COMPLETES PURCHASE AKRON OHIO CHEMPOWER INC SAID IT COMPLETED THE PURCHASE OF THE PANELFABRICATION BUSINESS FROM GLOBAL POWER CO OF WAVERLY TENN THROUGH CHEMPOWER'S HOUSTON PRODUCTS DIVISION TERMS OF THE PACT WEREN'T DISCLOSED IN ADDITION MCLEAN INSULATION INC A WHOLLY OWNED SUBSIDIARY OF CHEMPOWER BOUGHT GLOBAL'S INSULATION AND ASBESTOSABATEMENT OPERATIONS 9404200117 940420 US WEIGHS ACTION TO CURB IMPORTS OF CANADA'S WHEAT BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA THE US GOVERNMENT WARNED CANADA THAT IT WILL TAKE ACTION AGAINST THE NATION'S RISING WHEAT EXPORTS TO THE US IF CANADA DOESN'T AGREE BY FRIDAY TO CURB SUCH SHIPMENTS CANADIAN TRADE MINISTER ROY MACLAREN INDICATED THAT A WHEAT AGREEMENT BY FRIDAY WAS UNLIKELY THE US AND CANADIAN POSITIONS REMAIN FAR APART HE TOLD THE HOUSE OF COMMONS IN WASHINGTON AGRICULTURE SECRETARY MIKE ESPY SAID THE ACTION AGAINST CANADIAN WHEAT WOULD BE TAKEN UNDER A PROVISION OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE PROVISION WOULD ALLOW THE US TO SET AN IMPORT QUOTA FOR CANADIAN WHEAT IMPORTS ABOVE THE QUOTA WOULD BE SUBJECT TO A PUNITIVE TARIFF THERE CURRENTLY ARE NO US QUOTAS ON CANADIAN GRAIN AND TARIFFS ARE ARE VERY LOW THE TRADE RESTRICTION HOWEVER COULDN'T TAKE EFFECT FOR 90 DAYS TO ALLOW FURTHER CONSULATIONS BETWEEN THE TWO COUNTRIES THE US GOVERNMENT HAS BEEN UNDER HEAVY PRESSURE FROM FARM GROUPS TO CURB IMPORTS OF CANADIAN GRAIN CANADIAN WHEAT IS ESTIMATED TO ACCOUNT FOR ABOUT 7 OF US CONSUMPTION AND CANADIAN BARLEY AND OTHER GRAINS HAVE ALSO MADE SIGNIFICANT INROADS INTO THE US MARKET MR ESPY TOLD A GROUP OF VISITING CANADIANS REPRESENTING THE CANADIAN INSTITUTE OF INTERNATIONAL AFFAIRS THAT CANADIAN EXPORTS OF WHEAT TO THE US HAVE MORE THAN QUADRUPLED IN THE PAST THREE YEARS THE CANADIAN WHEAT BOARD WHICH MARKETS WESTERN CANADIAN WHEAT AND BARLEY SAID THE US MARKET HAS BECOME ATTRACTIVE BECAUSE US GRAIN PRICES ARE COMPARATIVELY HIGH AND SUPPLIES ARE TIGHT FOR SOME GRAINS INCLUDING DURUM WHEAT AND FEED WHEAT DURUM WHEAT IS USED TO MAKE PASTA PRODUCTS AND CANADA NOW ACCOUNTS FOR MORE THAN 20 OF US CONSUMPTION THE US HAS PROPOSED THAT CANADIAN WHEAT EXPORTS TO THE US BE LIMITED TO 15 MILLION METRIC TONS A YEAR A METRIC TON OF WHEAT EQUALS 3674 BUSHELS THE CANADIAN GOVERNMENT PROPOSED A CAP OF 25 MILLION TONS WHICH MR ESPY SAID WAS TO US PRODUCERS AN OUTRAGEOUSLY HIGH LEVEL 9404200116 940420 ATMOS STOCK SPLIT SET FOR MAY 16 DALLAS ATMOS ENERGY CORP SAID ITS 3FOR2 COMMON STOCK SPLIT WILL BE EFFECTIVE MAY 16 FOR STOCK OF RECORD MAY 4 THE ENERGY CONCERN SAID IT HAS RECEIVED REGULATORY APPROVALS FOR ISSUING THE SHARES FOR THE SPLIT WHICH WAS ANNOUNCED IN FEBRUARY ATMOS SAID ITS COMMON SHARES OUTSTANDING WILL INCREASE TO SLIGHTLY MORE THAN 15 MILLION FROM ABOUT 10 MILLION 9404200115 940420 JUSTICES DEAL INVESTORS A BLOW IN CERTAIN SUITS SUPREME COURT RULING SAYS LAW DOESN'T PROHIBIT AIDING SECURITIES FRAUD BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT TOOK AWAY A MAJOR LEGAL WEAPON THAT INVESTORS HAVE USED IN LAWSUITS ALLEGING SECURITIESFRAUD SCHEMES IN A 54 RULING THE COURT SAID THE MAIN FEDERAL SECURITIESFRAUD LAW SECTION 10B OF THE 1934 SECURITIES EXCHANGE ACT DOESN'T ALLOW INVESTORS TO FILE SUITS CHARGING THAT SOMEONE AIDED OR ABETTED DECEPTIVE ACTS INVOLVING STOCK OR BOND TRANSACTIONS THE MAIN BENEFICIARIES OF THE RULING WILL BE LAWYERS ACCOUNTANTS AND OTHER FINANCIAL ADVISERS WHO ARE COMMONLY SWEPT INTO SECURITIESFRAUD SUITS EVEN IF THEIR ROLES WERE TANGENTIAL TO THE PURPORTED WRONGDOING WHILE THE DECISION DIRECTLY INVOLVED PRIVATE SUITS THE RATIONALE ALSO SEEMS TO BAR THE SECURITIES AND EXCHANGE COMMISSION FROM TAKING CIVIL ENFORCEMENT ACTIONS AGAINST DEFENDANTS WHO PLAY SECONDARY ROLES IN ALLEGED FRAUD SCHEMES WRITING FOR THE MAJORITY JUSTICE ANTHONY KENNEDY SAID SECTION 10B AS WRITTEN SIMPLY DOESN'T PROHIBIT AIDING SECURITIES FRAUD HE SAID LOWER COURTS HAVE BEEN WRONG TO READ THE PROVISION AS DOING SO JUSTICE KENNEDY FAILED TO CLARIFY THE RULING'S EFFECT ON THE SEC WHICH HAD FILED A FRIENDOFTHECOURT BRIEF URGING THE JUSTICES TO PRESERVE AIDINGANDABETTING LIABILITY UNDER SECTION 10B IN A DISSENTING OPINION JUSTICE JOHN PAUL STEVENS ASSERTED THAT THE MAJORITY'S STRICT READING OF SECTION 10B LEAVES LITTLE DOUBT THAT THE SEC WOULD BE AFFECTED BUT THE COMMISSION'S GENERAL COUNSEL SIMON LORNE ARGUED THAT THE KENNEDY OPINION LEFT OPEN THE COMMISSION'S ABILITY TO BRING AIDINGANDABETTING CASES UNDER SECTION 10B THE SEC LAWYER SAID A REFERENCE BY JUSTICE KENNEDY TO VEXATIOUS INVESTOR LAWSUITS SUGGESTS THAT THE COURT WAS MORE CONCERNED WITH PRIVATE CASES THAN GOVERNMENT ACTIONS THE RULING WON'T STOP THE SEC FROM ENFORCING OTHER NARROWER PROVISIONS OF THE SECURITIES LAWS THAT EXPLICITLY PROHIBIT AIDING AND ABETTING SUCH WRONGDOING AS TRADING STOCK BASED ON INSIDE INFORMATION THE DECISION LIKEWISE WON'T INTERFERE WITH CRIMINAL PROSECUTIONS OF SECONDARY PLAYERS IN SECURITIESFRAUD CASES NOR WILL IT AFFECT THE RIGHT OF INVESTORS TO BRING SUITS AGAINST THOSE THEY BELIEVE WERE DIRECTLY INVOLVED IN WRONGDOING THE CASE BEFORE THE JUSTICES AROSE AFTER INVESTORS SUED PARTICIPANTS IN A 1988 SALE OF MUNICIPAL BONDS INTENDED TO FINANCE A PLANNED COMMUNITY IN COLORADO SPRINGS COLO THE SUIT BROUGHT AFTER THE ISSUING AUTHORITY DEFAULTED ON THE BONDS NAMED AMONG OTHERS CENTRAL BANK OF DENVER WHICH HAD SERVED AS TRUSTEE FOR THE OFFERING AND ALLEGEDLY HELPED DEFRAUD THE INVESTORS THE FEDERAL APPEALS COURT IN DENVER RULED THAT BONDHOLDERS COULD SUE CENTRAL BANK REVERSING THE DENVER COURT THE SUPREME COURT MAJORITY REJECTED AN ARRAY OF ARGUMENTS BY INVESTOR ADVOCATES AND THE SEC INCLUDING THE NOTION THAT A BROAD READING OF SECTION 10B IS CONSISTENT WITH THE GENERAL PURPOSE OF THE NEW DEALERA SECURITIES LAWS IN CONGRESS THE SEC'S BACKERS WERE WARY OF ATTACKING THE HIGH COURT'S ACTION FOR FEAR THEY WOULD OPEN THE DOOR TO ATTEMPTS TO FURTHER LIMIT INVESTORS' RIGHTS TO SUE WE ARE GOING TO CONSIDER WHETHER TO DRAFT LEGISLATION TO REVERSE THIS DECISION SAID A SENIOR AIDE TO REP EDWARD MARKEY D MASS CHAIRMAN OF THE HOUSE TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE BUT THE AIDE ADDED THE PROSPECT OF IT GETTING TANGLED UP WITH EFFORTS TO LIMIT PRIVATE RIGHTS OF ACTION ISN'T APPEALING THE RULING IS THE LATEST IN A SERIES OF RECENT CASES IN WHICH THE HIGH COURT HAS EXPRESSED SKEPTICISM ABOUT SOCALLED IMPLIED RIGHTS TO SUE UNDER FEDERAL STATUTES IN HIS DISSENT JUSTICE STEVENS POINTED OUT THAT COURTS ASSUMED AT THE TIME SECTION 10B WAS ENACTED AND UNTIL LATELY THAT A STATUTE PASSED TO PROTECT A PARTICULAR GROUP SUCH AS INVESTORS CONFERRED ON MEMBERS OF THE GROUP A RIGHT TO SUE VIOLATORS WE SHOULD BE RELUCTANT TO LOP OFF RIGHTS OF ACTION THAT HAVE BEEN RECOGNIZED FOR DECADES EVEN IF THE JUDICIAL METHODOLOGY THAT GAVE THEM BIRTH IS NOW OUT OF FAVOR HE SAID JOINING THE DISSENT WERE JUSTICES HARRY BLACKMUN DAVID SOUTER AND RUTH BADER GINSBURG JOINING THE MAJORITY WERE CHIEF JUSTICE WILLIAM REHNQUIST AND JUSTICES SANDRA DAY O'CONNOR ANTONIN SCALIA AND CLARENCE THOMAS CENTRAL BANK OF DENVER NA VS FIRST INTERSTATE BANK OF DENVER NA 9404200114 940420 LAW LEGAL BEAT CABLETV SHOW ON SAFE SEX LEADS TO OBSCENITY CONVICTIONS IN TEXAS BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL IN A TEST OF THE FREEDOM OF PUBLICACCESS CABLETELEVISION PROGRAMMING A COUNTY COURT JURY IN TEXAS RECENTLY DELIVERED OBSCENITY CONVICTIONS AGAINST THE HOST AND PRODUCER OF A SEXUALLY EXPLICIT SHOW ABOUT SAFE SEX LEGAL EXPERTS SAY THIS MAY BE THE FIRST TIME A PUBLICACCESS PROGRAM HAS BEEN CHARGED WITH VIOLATING OBSCENITY LAWS ANTIPORNOGRAPHY ADVOCATES PREDICT IT WON'T BE THE LAST THIS WILL OPEN THE EYES OF OTHER PROSECUTORS THROUGHOUT THE COUNTRY THAT THEIR STATE OR LOCAL OBSCENITY LAWS MAY APPLY SAYS PAUL J MCGEADY GENERAL COUNSEL OF MORALITY IN MEDIA AN ANTIPORNOGRAPHY GROUP IN NEW YORK A 1984 FEDERAL LAW PROHIBITS CABLE OPERATORS FROM CONTROLLING THE CONTENT OF PUBLICACCESS PROGRAMMING AND RELIEVES THEM OF LIABILITY FOR IT IN MOST MARKETS CABLE OPERATORS ARE REQUIRED UNDER LOCAL FRANCHISE AGREEMENTS TO PROVIDE AN OUTLET TO PUBLICACCESS PROGRAMS WHICH AIR VIRTUALLY EVERYTHING THE PUBLIC SUPPLIES THEM IN THE 1980S WHITE SUPREMACISTS BEGAN USING PUBLIC ACCESS TV TO AIR RACIST PROGRAMS SPURRING A CONTINUING DEBATE ABOUT THE NEED FOR RESTRICTIONS THE LATEST VERDICT WORRIES AIDS EDUCATORS WHO SAY IT COULD INHIBIT THEIR ABILITY TO WARN PEOPLE ABOUT THE DISEASE IT'S VERY DANGEROUS TO SUGGEST THAT IT COULD BE A CRIMINAL ACT TO TEACH PEOPLE HOW TO PROTECT THEMSELVES FROM THE RISKS OF HIV SAYS DAVID HANSELL A GOVERNMENTAFFAIRS EXPERT FOR GAY MEN'S HEALTH CRISIS A NEW YORK EDUCATION AND ADVOCACY GROUP THE CASE CENTERED ON THE DEFENDANTS' DECISION TO AIR AS PART OF ITS TWOHOUR INFOSEX PROGRAM ON AUG 23 A THREEMINUTE VIDEO PRODUCED BY GAY MEN'S HEALTH CRISIS THAT SHOWED TWO MEN WEARING CONDOMS AND ENGAGING IN SEX THE VIDEO PROMPTED NUMEROUS CALLS OF PROTEST THREE DAYS AFTER IT AIRED A GRAND JURY IN TRAVIS COUNTY INDICTED THE PRODUCER AND HOST OF THE MONTHLY SAFESEX PROGRAM WHICH AIRED BETWEEN MIDNIGHT AND 2 AM ON AUSTIN COMMUNITY TELEVISION A PUBLICACCESS CHANNEL TRAVIS COUNTY ATTORNEY KEN ODEN SAID HE PURSUED THE CASE TO PROTECT UNSUSPECTING VIEWERS FROM OBSCENITY THE FIRST AMENDMENT WAS NEVER INTENDED TO BE ABLE TO ALLOW A TV PRODUCER TO TURN YOUR LIVING ROOM INTO A TRIPLEX MOVIE THEATER AGAINST YOUR WILL MR ODEN SAYS DEFENSE ATTORNEYS VOLUNTEERS WITH FINANCIAL ASSISTANCE FROM THE AMERICAN CIVIL LIBERTIES UNION ARGUED THAT THE VIDEO HAD SCIENTIFIC VALUE AND THUS DIDN'T VIOLATE OBSCENITY LAWS IN TEXAS AS IN EVERY STATE OBSCENITY LAW MUST FOLLOW THE 1973 US SUPREME COURT DECISION THAT SETS A THREEPART DEFINITION OF OBSCENITY MATERIAL THAT APPEALS TO THE PRURIENT INTEREST WHEN TAKEN AS A WHOLE THAT IS PATENTLY OFFENSIVE UNDER COMMUNITY STANDARDS AND THAT LACKS SERIOUS LITERARY ARTISTIC POLITICAL OR SCIENTIFIC VALUE IN 1990 AN OHIO JURY CONSIDERED WHETHER A CINCINNATI MUSEUM AND ITS DIRECTOR VIOLATED OBSCENITY LAW BY EXHIBITING SEXUALLY EXPLICIT PHOTOGRAPHS BY ROBERT MAPPLETHORPE AND ENDED UP VOTING FOR ACQUITTAL AFTER THE DEFENSE ARGUED THAT THE WORK HAD SERIOUS ARTISTIC VALUE BUT THE AUSTIN JURY ON APRIL 9 RULED IN FAVOR OF THE PROSECUTION WHICH HAD ARGUED THAT THE VIDEO HAD NO EDUCATIONAL OR SCIENTIFIC VALUE THIS IS NOT AN INDICTMENT AGAINST AIDS EDUCATION IT'S AN INDICTMENT OF SEXUALLY EXPLICIT PROGRAMMING THAT CANNOT BE JUSTIFIED ON ANY EDUCATIONAL THEORY SAID MR ODEN THE DEFENDANTS PLAN TO APPEAL ON THE GROUNDS THAT THE JURY WAS INSTRUCTED TO CONSIDER THE THREEMINUTE VIDEO APART FROM THE TWOHOUR PROGRAM JURORS VIEWED THE ENTIRE PROGRAM AND TOLD US AFTERWARD THAT IF THEY HAD BEEN TOLD TO CONSIDER THIS PROGRAM AS A WHOLE THEN THEY WOULD NOT HAVE FOUND GUILT SAID CYNTHIA BIGGERS AN ATTORNEY FOR THE HOST GARETH REES THE SUPREME COURT MADE CLEAR IN 1973 THAT CONTEXT MUST BE CONSIDERED IN JUDGING OBSCENITY IF YOU TAKE THE ENTIRE TWOHOUR PROGRAM AND PUT THE THREEMINUTE CLIP IN CONTEXT IT HAS VERY SERIOUS SCIENTIFIC AND EDUCATIONAL VALUE SAID LARRY SAUER AN ATTORNEY FOR PRODUCER TERRELL JOHNSON THE DEFENDANTS FACE AS MUCH AS A YEAR IN JAIL AND A FINE OF 3000 THE PUBLICACCESS CHANNEL SUSPENDED MS JOHNSON AND TOOK THE SHOW OFF THE AIR LAST YEAR THE INDICTMENT ALSO ACCUSED THE DEFENDANTS OF RECKLESSLY DISPLAYING HARMFUL MATERIAL TO MINORS THE TWO WERE ACQUITTED OF THAT CHARGE AFTER ARGUING THAT THEY HAD DISCOURAGED MINORS FROM WATCHING THE PROGRAM THROUGH ITS LATE AIR TIME AS WELL AS BROADCASTED WARNINGS CRIMINAL CONVICTIONS AGAINST US DISTRICT JUDGE ROBERT P AGUILAR WERE THROWN OUT BY A FEDERAL APPEALS COURT THE NINTH US CIRCUIT COURT OF APPEALS IN SAN FRANCISCO OVERTURNED TWO CONVICTIONS AGAINST THE JUDGE FOR ALLEGEDLY TIPPING OFF A CRIMINAL SUSPECT ABOUT A WIRETAP AND OBSTRUCTING JUSTICE HE HAD FACED SIX MONTHS IN PRISON AND A 2000 FINE THE APPEALS COURT NOTED THAT THE CRIMINAL SUSPECT WHO WAS RELATED TO THE JUDGE BY MARRIAGE WASN'T ACTUALLY BEING WIRETAPPED AT THE TIME OF THE ALLEGED TIPOFF BECAUSE THERE WAS NO WIRETAP VIOLATING THE WIRETAP LAW WAS A LEGAL IMPOSSIBILITY THE COURT SAID THE COURT ALSO SAID THE OBSTRUCTIONOFJUSTICE LAW WAS INTERPRETED TOO BROADLY IN JUDGE AGUILAR'S CASE TWO APPEALSCOURT JUDGES DISSENTED SAYING THE WIRETAP CONVICTION SHOULD STAND BECAUSE JUDGE AGUILAR INTENDED TO VIOLATE THE LAW JUNDA WOO CONTRIBUTED TO THIS ARTICLE 9404200113 940420 ALCO STANDARD ACQUISITION VALLEY FORGE PA ALCO STANDARD CORP ACQUIRED VAIL'S OFFICE EQUIPMENT INC OF LEWISTON IDAHO VAIL'S DISTRIBUTES CANON COPIER AND FACSIMILE EQUIPMENT TERMS WEREN'T DISCLOSED ALCO STANDARD SAID VAIL'S WILL BECOME PART OF ALCO'S AUTOMATED OFFICE SYSTEMS UNIT THE COMPANY SAID IT EXPECTS AUTOMATED OFFICE SYSTEMS' REVENUE TO BE MORE THAN 46 MILLION IN THE YEAR ENDING SEPT 30 9404200112 940420 NATURAL EARTH ACQUISITION SAN FRANCISCO NATURAL EARTH TECHNOLOGIES INC SAID IT AGREED TO ACQUIRE SUBSTANTIALLY ALL THE ASSETS OF A PRIVATELY HELD SUPPLIER OF LAWN AND GARDEN PRODUCTS FOR 205 MILLION AND AN ADDITIONAL 22 MILLION PAYABLE OVER FOUR YEARS BASED ON PERFORMANCE AN EXECUTIVE AT NATURAL EARTH A MAKER OF LAWN AND GARDEN PRODUCTS SAID IT WILL RELEASE THE COMPANY'S NAME LATER 9404200111 940420 RB&W RECEIVES OFFER FOR STOCK MENTOR OHIO RB&W CORP SAID IT RECEIVED AN OFFER TO PURCHASE FROM 51 TO 100 OF ITS COMMON STOCK FOR BETWEEN 725 AND 750 A SHARE FROM DOMINION BRIDGE OF CANADA THE POTENTIAL VALUE OF THE DEAL IF DOMINION BRIDGE BUYS 100 IS BETWEEN 423 MILLION AND 438 MILLION RB&W OFFICIALS COULDN'T BE REACHED FOR COMMENT RB&W A MAKER OF NUTS BOLTS AND SCREWS SAID IN A RELEASE THAT THE OFFER WAS REFERRED TO THE COMPANY'S BOARD AND WILL BE REVIEWED AT A MEETING ON APRIL 29 IN COMPOSITE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE RB&W CLOSED AT 5875 DOWN 125 CENTS 9404200110 940420 REPORTS OF MRS RISSMILLER'S DEATH HAVE BEEN GREATLY EXAGGERATED BY G BRUCE KNECHT STAFF REPORTER OF THE WALL STREET JOURNAL BEING DEAD IS TOUGH ESPECIALLY WHEN YOU'RE NOT UNITED STATES GOVERNMENT RECORDS DECLARED THAT EDNA MAY RISSMILLER OF LAURELDALE PA DIED FEB 27 AS A CONSEQUENCE IT RECOLLECTED HER 67262 MARCH PENSION CHECK AND CANCELED HER INSURANCE COVERAGE NOT TOO UNUSUAL EXCEPT FOR ONE THING MRS RISSMILLER WAS VERY MUCH ALIVE AND VERY VERY ANGRY HER SON WILLIAM KNEW SOMETHING WAS WRONG WHEN A PHARMACY INEXPLICABLY REFUSED TO HONOR HIS MOTHER'S INSURANCE CARD ON MARCH 19 HE FOUND THE EXPLANATION IN HIS MAILBOX LATER THAT DAY A LETTER FROM MERIDIAN BANCORP INC ANNOUNCED THAT HIS MOTHER'S RECENT DEMISE HAD CAUSED IT TO RETURN HER UNEARNED PENSION PAYMENT TO THE GOVERNMENT HAVING SEEN HIS MOTHER A 79YEAROLD WIDOW EARLIER IN THE DAY MR RISSMILLER KNEW THAT THE GOVERNMENT WAS WELL DEAD WRONG MR RISSMILLER WAS FURIOUS AND SO WAS HIS MOTHER THEY DECIDED I WAS DEAD AND THEY TOOK AWAY MY MONEY SHE FUMES ADDING THAT SHE SEES ABSOLUTELY NO HUMOR IN HER PREDICAMENT NO IT'S NOT FUNNY AT ALL I DIDN'T LIKE BEING CALLED BEFORE MY TIME AND I CANNOT SURVIVE WITHOUT THAT PENSION CHECK I HAVE LOST A LOT OF SLEEP OVER THIS THE OFFICE OF PERSONNEL MANAGEMENT IS THE CULPRIT BEHIND THE MIXUP THAT AGENCY WHICH PROVIDES THE TREASURY DEPARTMENT WITH A MONTHLY LIST OF THE LIVING MISTAKENLY DELETED MRS RISSMILLER'S SOCIAL SECURITY NUMBER THE TREASURY IN TURN CONTACTED MERIDIAN BANCORP THE JOB OF RESURRECTING MRS RISSMILLER HAS BEEN LESS THAN STRAIGHTFORWARD WHEN MR RISSMILLER CALLED MERIDIAN WHICH IS BASED IN READING PA HE RECOUNTS THEY TOLD ME AS FAR AS THEY WERE CONCERNED THAT SHE WAS DEAD UNTIL I COULD PROVE OTHERWISE INCREDULOUS HIS MOTHER BLURTS WE TOLD THEM I WAS ALIVE BUT THEY WOULDN'T BELIEVE IT MR RISSMILLER HAS HAD SOMEWHAT BETTER LUCK AFTER HE PROVIDED THE BANK WITH A SIGNED AFFIDAVIT BUT JUST IN CASE HE BEGAN SENDING LETTERS TO EVERY OFFICIAL HE COULD THINK OF INCLUDING HILLARY RODHAM CLINTON WHILE MERIDIAN HAS BECOME A BELIEVER CAPITAL BLUE CROSS AND BLUE SHIELD MRS RISSMILLER'S INSURER WERE STILL SKEPTICAL AS OF SEVERAL WEEKS AGO I CALLED THEM THIS MORNING MR RISSMILLER SAID BACK THEN AND THEY STILL SAY SHE'S DEAD 9404200109 940420 CHRYSLER PROFIT WAS A RECORD IN FIRST QUARTER BUT FAILURE TO EARN MORE AND FEAR OF RATES PUT CAR STOCKS INTO REVERSE BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL HIGHLAND PARK MICH CHRYSLER CORP EARNINGS SET A QUARTERLY RECORD BUT ITS FAILURE TO PRODUCE EVEN HIGHER RESULTS AND FEARS THAT RISING INTEREST RATES COULD CHOKE OFF THE ECONOMIC RECOVERY SENT AUTO STOCKS INTO REVERSE IN THE FIRST QUARTER CHRYSLER WHICH HAS BEEN LEADING THE AUTOINDUSTRY REBOUND POSTED NET INCOME OF 938 MILLION OR 255 A SHARE THE PREVIOUS RECORD WAS SET IN 1984'S SECOND QUARTER IN THE YEARAGO FIRST QUARTER CHRYSLER EARNED 530 MILLION OR 157 A SHARE BEFORE BIG CHARGES FOR ACCOUNTING CHANGES RELATED TO RETIREE BENEFITS AMONG OTHER THINGS AFTER THE CHARGE THE COMPANY HAD A NET LOSS OF 444 BILLION OR 1368 A SHARE REVENUE FOR THE FIRST QUARTER ROSE 21 TO A RECORD 132 BILLION ALTHOUGH THE RESULTS WERE AT THE HIGH END OF ANALYSTS' FORECASTS CHRYSLER SHARES SKIDDED 2375 OR 47 TO CLOSE AT 4850 AS 64 MILLION OF ITS SHARES CHANGED HANDS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FORD MOTOR CO SHARES CLOSED DOWN 150 OR 26 AT 56375 ON VOLUME OF 25 MILLION SHARES AND GENERAL MOTORS CORP SHARES WERE OFF 1675 OR 29 CLOSING AT 5525 A SHARE ON VOLUME OF 41 MILLION SHARES ANALYSTS CITED CONCERN OVER HIGHER INTEREST RATES THAT LED SOME INVESTORS TO BAIL OUT OF AUTOMOTIVE AND OTHER CYCLICAL STOCKS HELPING TO CEMENT THAT VIEWPOINT WAS A LIST OF RECOMMENDATIONS ISSUED YESTERDAY MORNING BY ELAINE GARZARELLI THE INFLUENTIAL LEHMAN BROTHERS ANALYST WHO DOWNGRADED AUTO STOCKS TO NEUTRALPLUS FROM ATTRACTIVE BASED ON CONCERN THAT HIGHER INTEREST RATES COULD END BOOMING ECONOMIC GROWTH THERE IS A BIG SCHOOL OF THOUGHT OUT THERE THAT IT IS TIME TO GET OUT OF THE CYCLICALS SAID DAVID BRADLEY AN AUTO ANALYST WITH JP MORGAN & CO MR BRADLEY HIMSELF ARGUES THAT ECONOMIC GROWTH IS SUFFICIENTLY SOLID TO WITHSTAND THE RECENT RISE IN INTEREST RATES CHRYSLER SHARES IN PARTICULAR WERE HURT BY THE COMPANY'S OWN PAST SUCCESS ANALYSTS SAID INVESTORS HAVE COME TO EXPECT EARNINGS SURPRISES FROM CHRYSLER WHICH POSTED RESULTS THAT EXCEEDED WALL STREET'S EXPECTATIONS IN THE PAST TWO QUARTERS BUT WHEN IT ANNOUNCED RESULTS IN LINE WITH EXPECTATIONS FOR THE FIRST TWO QUARTERS OF 1993 ITS STOCK ALSO FELL SOME ANALYSTS ALSO SAID INVESTORS WERE CONCERNED BECAUSE CHRYSLER REPORTED PAYING OUT 710 A VEHICLE IN MARKETING INCENTIVES SUCH AS REBATES DURING THE FIRST QUARTER UP FROM 650 A VEHICLE IN THE FOURTH QUARTER CHRYSLER SAID THE HIGHER OUTLAYS REFLECTED ITS NATIONAL SALE ON MINIVANS NOT A WEAKENING OF THE OVERALL VEHICLE MARKET THE AUTO STOCKS' PLUNGE CAME DESPITE FAVORABLE NEWS FROM STANDARD & POOR'S RATING GROUP S&P RAISED CHRYSLER'S RATING ON 115 BILLION IN DEBT AND SAID THE OUTLOOK IS POSITIVE FOR ANOTHER UPGRADE THE RATING SERVICE ALSO CHANGED ITS OUTLOOK FOR GM TO POSITIVE FROM NEGATIVE CITING COSTCUTTING AT GM'S CORE NORTH AMERICAN BUSINESS SOLID EARNINGS MEAN CHRYSLER IS LIKELY TO RAISE ITS DIVIDENDS BY YEAR'S END ANALYSTS SAID IN DECEMBER THE COMPANY RAISED ITS QUARTERLY DIVIDEND TO 20 CENTS A SHARE FROM 15 CENTS THE AUTO MAKER DECLINED TO COMMENT ON ANY DIVIDEND INCREASE CHRYSLER HAD RECORD EARNINGS FOR A STRAIGHTFORWARD REASON PRODUCT PRODUCT PRODUCT PRODUCT SAID THOMAS G DENOMME CHRYSLER'S EXECUTIVE VICE PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER QUITE SIMPLY CHRYSLER SOLD MORE VEHICLES AND EARNED MORE MONEY ON EACH SALE BEFORE TAXES CHRYSLER'S AUTOMOTIVE OPERATIONS GLOBALLY POSTED AN AVERAGE PROFIT OF 1980 A VEHICLE UP FROM 1280 A YEAR AGO IN THE FOURTH QUARTER OF 1993 THE COMPARABLE FIGURE WAS 1929 ALTHOUGH PROMOTIONAL EXPENSES PER VEHICLE IN THE FIRST QUARTER WERE UP COMPARED WITH THE FOURTH QUARTER THEY WERE DOWN FROM A YEAR EARLIER SPECIFICALLY IN THE FIRST QUARTER MARKETING COSTS TOTALED 860 MILLION OR 76 OF REVENUE COMPARED WITH 876 MILLION OR 93 OF REVENUE IN THE FIRST QUARTER OF LAST YEAR CHRYSLER STRENGTHENED ITS BALANCE SHEET DURING THE FIRST QUARTER IT CONTRIBUTED 684 MILLION TO ITS PENSION PLANS MORE THAN TWICE THE 330 MILLION IT WAS REQUIRED TO CONTRIBUTE AS PART OF A CONTINUING EFFORT TO REDUCE ITS UNFUNDED PENSION LIABILITY FROM 22 BILLION AS OF DEC 31 TO 11 BILLION BY THE END OF THIS YEAR WE'RE A LITTLE BIT AHEAD OF PLAN SAID GARY VALADE CHRYSLER'S CHIEF FINANCIAL OFFICER THE AUTO MAKER ALSO CONTINUED TO SHIFT BUSINESS TOWARD MOREPROFITABLE RETAIL SALES AND AWAY FROM LESSPROFITABLE FLEET SALES THE SHARE OF FLEET SALES DROPPED TO 20 FROM 23 A YEAR AGO MR VALADE SAID WORLDWIDE VEHICLE SALES ROSE 146 TO 740598 UNITS FROM 646381 A YEAR AGO BUT REFLECTING EXPANDING MARKETS THE COMPANY'S MARKET SHARE IN US AND CANADA REMAINED THE SAME AT 157 THE COMPANY SAID IT HAS 649 BILLION IN CASH AND MARKETABLE SECURITIES ON HAND UP FROM 51 BILLION A YEAR EARLIER CHRYSLER'S FINANCIAL SUBSIDIARY CHRYSLER FINANCIAL CORP EARNED 47 MILLION IN THE FIRST QUARTER COMPARED WITH OPERATING EARNINGS OF 37 MILLION A YEAR EARLIER AFTER AN ACCOUNTING CHANGERELATED CHARGE THE FINANCIAL SUBSIDIARY'S EARNINGS A YEAR AGO WERE ONLY 7 MILLION 9404200108 940420 INTERNATIONAL BUTHELEZI DROPS BOYCOTT OF SOUTH AFRICA ELECTIONS REVERSAL REMOVES OBSTACLE TO POLITICAL TRANSITION MAY LESSEN VIOLENCE BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL PRETORIA SOUTH AFRICA IN AN ELEVENTHHOUR RETREAT CHIEF MANGOSUTHU BUTHELEZI DROPPED HIS BOYCOTT OF SOUTH AFRICA'S FIRST MULTIRACIAL ELECTIONS REMOVING A HUGE OBSTACLE TO A SMOOTH TRANSITION TO MAJORITY RULE MR BUTHELEZI'S REVERSAL ENSURES THAT SOUTH AFRICA'S HISTORIC BALLOT WILL BE HELD AS SCHEDULED NEXT WEEK AND IT SHOULD LEAD TO A DROP IN THE VIOLENCE THAT HAD SOME PEOPLE FEARING THE COUNTRY WAS ABANDONING APARTHEID ONLY TO BE PLUNGED INTO CIVIL WAR THIS IS LIKE A DREAM SAID ARCHBISHOP DESMOND TUTU THE NOBEL PEACE PRIZE LAUREATE IT SEEMED TOTALLY IMPOSSIBLE FOR AN INCLUSIVE SETTLEMENT TO HAPPEN AND IT HAPPENED THE COUNTRY'S COLLECTIVE SIGH OF RELIEF WAS REFLECTED IN A 24 RISE ON THE JOHANNESBURG STOCK EXCHANGE AND AN 8 SURGE IN THE FINANCIAL RAND THE RESTRICTED CURRENCY UNIT USED BY FOREIGN INVESTORS HOWEVER ANALYSTS AND MR BUTHELEZI NOTED THAT WHILE THE APRIL 2628 ELECTION HAS BEEN SAVED AND DESPITE THE EUPHORIA SUBSTANTIAL ISSUES REMAIN TO BE RESOLVED AFTER THE BALLOT THESE INCLUDE MR BUTHELEZI'S DEMANDS FOR A FEDERAL CONSTITUTION MOREOVER FEARS OF CONTINUED VIOLENCE REMAIN STRONG ENOUGH THAT A LOCAL STATE OF EMERGENCY IN MR BUTHELEZI'S STRIFETORN POWER BASE OF KWAZULUNATAL REMAINS IN PLACE DESPITE CLOSE TO 3000 SOLDIERS PATROLLING IN THE REGION 226 PEOPLE HAVE BEEN KILLED SINCE THE STATE OF EMERGENCY BEGAN MARCH 31 THERE IS ALSO CONTINUED FIGHTING BETWEEN SUPPORTERS OF THE AFRICAN NATIONAL CONGRESS AND MR BUTHELEZI'S INKATHA FREEDOM PARTY IN THE EAST RAND REGION NEAR JOHANNESBURG WE SHOULD NOT OVERESTIMATE THE SUCCESS ON THE TABLE MR BUTHELEZI SAID WE STILL HAVE TO DEAL WITH PEOPLE ON THE GROUND AND THIS WILL NOT BE RESOLVED WITH A MAGIC WAND STILL BRINGING MR BUTHELEZI INTO THE ELECTORAL FOLD IS A MAJOR ACHIEVEMENT THAT SHOULD BOOST INVESTOR CONFIDENCE IN SOUTH AFRICA WHICH ECONOMISTS SAY IS VITAL IF THE COUNTRY IS TO MEET THE HUGE ASPIRATIONS OF THE BLACK MAJORITY ONLY A WEEK AGO A HIGHPOWERED TEAM OF INTERNATIONAL MEDIATORS HEADED BY HENRY KISSINGER LEFT SOUTH AFRICA UNABLE TO GET THE GOVERNMENT THE ANC AND INKATHA TO AGREE EVEN ON AN AGENDA FOR TALKS BUT YESTERDAY THE SAME PARTIES CONVENED IN PRETORIA TO SIGN AN AGREEMENT FOR RECONCILIATION AND PEACE THAT PUTS THE COUNTRY'S NEGOTIATED REVOLUTION BACK ON TRACK FOR MONTHS MR BUTHELEZI HAD INSISTED THAT HE WOULD BOYCOTT THE ELECTIONS UNLESS THEY WERE POSTPONED AND THE INTERIM CONSTITUTION WAS AMENDED TO PROVIDE FOR A FEDERAL SYSTEM THAT WOULD VEST SUBSTANTIAL POWERS IN THE COUNTRY'S NINE REGIONS WARNING OF A FINAL STRUGGLE TO THE FINISH BETWEEN THE ANC AND THE ZULU NATION HE WAS BACKED BY ZULU KING GOODWILL ZWELITHINI WHO HAD THREATENED TO SECEDE IF MR BUTHELEZI'S DEMANDS WEREN'T MET YESTERDAY HOWEVER MR BUTHELEZI AGREED TO CONDITIONS THAT FALL FAR SHORT OF HIS EARLIER DEMANDS AND COULD HAVE BEEN AGREED ON LONG AGO THERE'S NOTHING IN THE AGREEMENT WE WEREN'T PREPARED TO ACCEDE TO AT AN EARLIER STAGE PRESIDENT FW DE KLERK SAID IN RETURN FOR PARTICIPATING IN THE ELECTIONS AT THE SCHEDULED DATE MR BUTHELEZI OBTAINED CONSTITUTIONAL RECOGNITION OF A KINGDOM OF KWAZULU THAT WILL HAVE ASYET UNDEFINED INSTITUTIONS AND A PROMISE THAT OUTSTANDING CONSTITUTIONAL DIFFERENCES WILL BE SETTLED THROUGH INTERNATIONAL MEDIATION AFTER THE ELECTIONS TO GET MR BUTHELEZI INTO THE ELECTIONS AT THIS LATE DATE THE INDEPENDENT ELECTORAL COMMISSION SAID IT WOULD AFFIX STICKERS WITH THE NAME OF MR BUTHELEZI'S PARTY ON BALLOT PAPERS AT A JOINT NEWS CONFERENCE WITH MR BUTHELEZI MR DE KLERK AND HIS LIKELY SUCCESSOR ANC LEADER NELSON MANDELA HAILED THE ACCORD THIS AGREEMENT I BELIEVE REMOVES ONE OF THE LAST CAUSES FOR TENSION AND VIOLENCE IN THE REPUBLIC OF SOUTH AFRICA MR DE KLERK SAID MR MANDELA ADDED THAT IT IS A LEAP FORWARD FOR PEACE RECONCILIATION NATIONBUILDING AND AN INCLUSIVE ELECTION PROCESS I SINCERELY HOPE THAT THROUGH THIS AGREEMENT WE'LL BE ABLE TO BRING ABOUT STABILITY AND CONFIDENCE MR BUTHELEZI SAID HE AGREED TO THE ACCORD IN THE INTERESTS OF SOUTH AFRICA I BELIEVE THAT AS A RESULT OF THE SIGNING OF THIS MEMORANDUM OF UNDERSTANDING SOUTH AFRICA MAY WELL HAVE BEEN SAVED FROM DISASTROUS CONSEQUENCES OF UNIMAGINABLE PROPORTIONS AND HAS BEEN PUT ON A COURSE WHICH I HOPE WILL LEAD TO LONGLASTING PEACE DEMOCRACY AND MEANINGFUL FEDERALISM BUT ANALYSTS SAY MR BUTHELEZI LIKELY HAD HIS OWN INTERESTS IN THE NEW SOUTH AFRICA IN MIND WITH NEWS REPORTS SUGGESTING THAT KING ZWELITHINI'S SUPPORT WAS WAVERING AND WITH MR BUTHELEZI'S POSITION AS CHIEF MINISTER OF THE SELFGOVERNING HOMELAND OF KWAZULU LIKELY TO BE ELIMINATED IN THE POSTELECTION SOUTH AFRICA ANALYSTS SAY MR BUTHELEZI HAD PAINTED HIMSELF INTO A CORNER HAVING BUILT UP INTERNATIONAL CREDIBILITY OVER THE YEARS AS A PROPONENT OF A PEACEFUL SETTLEMENT IN SOUTH AFRICA AND A BACKER OF FREEMARKET POLICIES HE FOUND HIMSELF SUDDENLY CAST IN THE ROLE OF SPOILER OF THE COUNTRY'S HISTORIC TRANSITION I TOLD HIM THAT INTERNATIONALLY AND IN AFRICA THERE WAS NO POSSIBILITY HE'D GET ANY HELP SAID WASHINGTON JALANG'O OKUMU A KENYAN ACADEMIC WHO WAS INSTRUMENTAL IN BRINGING MR BUTHELEZI INTO THE ELECTIONS BY PARTICIPATING IN THE ELECTIONS MR BUTHELEZI CAN STILL HOPE FOR AN IMPORTANT ROLE IN NATIONAL AND REGIONAL POLITICS MR OKUMU SAID HIS ALTERNATIVE WAS TO RESORT TO GUERRILLA WARFARE HE ADDED 9404200107 940420 PILLSBURY'S TELEPHONES RING WITH PEEVES PRAISE BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL MINNEAPOLIS THE CALLER TO PILLSBURY CO'S 800 HOTLINE IS PEEVED THE CAKE SHE MADE CAME OUT EGGY SHE WANTS HER MONEY BACK NANCY NARR THE CONSUMERSERVICE REPRESENTATIVE WHO GETS THE CALL EXPRESSES SYMPATHY THEN ASKS FOR THE MANUFACTURER'S CODE ON THE BOX AS SHE TAPS IT INTO HER COMPUTER THE APPARENT REASON FOR THE FAILED CAKE FLASHES ON THE SCREEN THAT MIX WAS PACKAGED IN 1988 SHE TELLS THE CALLER BUT I JUST PURCHASED IT THE WOMAN INSISTS WELL SAYS MS NARR I'D LIKE TO REPLACE IT FOR YOU OFFERING TO SEND A COUPON FOR A FREE BOX THE CALLER SEEMS PLEASED ANOTHER CONSUMER REMAINS IN THE FOLD MS NARR AND THE DOZEN OTHER WOMEN ANSWERING THE PHONES ONE DAY RECENTLY AT PILLSBURY'S MINNEAPOLIS HEADQUARTERS ARE AT THE FRONT IN BRAND WARS EVERY WEEKDAY THEY LISTEN TO ON AVERAGE 2000 PEOPLE FROM ALL OVER NORTH AMERICA WHO CALL THE COMPANY'S 800 NUMBER WITH COMPLAINTS COMPLIMENTS AND QUESTIONS THE DAY BEFORE THANKSGIVING THE BUSIEST DAY THE FOOD COMPANY ASSISTS 3000 CALLERS WITH THEIR HOLIDAY DINNERS AS COMPANIES FIGHT OVER EVERY CUSTOMER BRANDEDGOODS MAKERS LIKE PILLSBURY WITH BIG TOLLFREE CONSUMER HELPLINE OPERATIONS HAVE A WEAPON THAT PRIVATELABEL PRODUCTS DON'T PILLSBURY'S CONSUMERSERVICE CENTER EMPLOYEES TRAINED IN BOTH KITCHEN AND CLASSROOM TRY TO MAKE THE MOST OF THAT ADVANTAGE BY PACIFYING UNHAPPY CONSUMERS AND MAKING SATISFIED ONES EVEN HAPPIER CALLS ARE HANDLED BY RESPONDENTS WOMEN MOSTLY WITH COLLEGE DEGREES AND BACKGROUNDS IN HOME ECONOMICS OR NUTRITION TURNOVER IS LOW THE LAST REPLACEMENT WAS HIRED FOUR YEARS AGO PAY IS AROUND 25000 A YEAR WHILE RESPONDENTS BRING YEARS OF EXPERIENCE TO THEIR CARPETED CUBICLES AN EXTENSIVE COMPUTERIZED DATABASE AND FAT MANUALS ARE AT THEIR FINGERTIPS SO ARE LOTS OF COOKBOOKS THE 800 OPERATION COSTS PILLSBURY A UNIT OF GRAND METROPOLITAN PLC SEVERAL MILLION DOLLARS ANNUALLY CALLS PROVIDE IMPORTANT INFORMATION FOR MANY AREAS OF THE COMPANY FROM PRODUCT DEVELOPMENT AND MARKETING TO QUALITYASSURANCE AND MANUFACTURING SALLY SHLOSBERG VICE PRESIDENT OF CONSUMER RELATIONS AND TECHNICAL SERVICES AND A SUPPORT STAFF OF EIGHT ANALYZE CALL DATA CONTINUALLY AND LOOK FOR MORE USES ONE IDEA ASK CALLERS ABOUT PRODUCT CONCEPTS TOLLFREE CONSUMER LINES PROVIDE A WONDERFUL RESEARCH TOOL AND ACT AS A SAFETY NET SAYS PAUL WALSH PILLSBURY'S CHIEF EXECUTIVE OFFICER IF WE HAVE A PROBLEM WITH A PRODUCT WE WANT TO BE THE FIRST TO HEAR ABOUT IT SOON AFTER PILLSBURY INTRODUCED FUNFETTI CAKE MIX WITH BITS OF EDIBLE CONFETTI CALLERS BEGAN COMPLAINING THAT THE CONFETTI PACKET WAS MISSING FROM THEIR BOX A QUICK CHECK OF THE MANUFACTURING LINE FOUND THE CONFETTI PACKETS WERE TOO LIGHT TO TRIP WEIGHT SCALES ON BOXES SO ENGINEERS WENT TO A FOIL PACKET THAT COULD BE VERIFIED MAGNETICALLY THE COMPLAINTS STOPPED ON A RECENT DAY A REPORTER WAS ALLOWED TO LISTEN IN ON CALLS THE COMPANY SAYS NORMALLY ONE CALL IN THREE BEGINS AS A COMPLAINT BUT THIS DAY ABOUT HALF THOSE MONITORED DEALT WITH PROBLEMS MOSTLY MINOR ONE CALLER SAID HER ROLL DOUGH WAS STRINGY THE SHORTENING HAD HARDENED PROBABLY BECAUSE THE PRODUCT HAD BEEN MISHANDLED SHE IS TOLD ANOTHER WONDERED ABOUT PEPPERLIKE FLAKES IN SOME DRIED POTATOES A CHIP APPARENTLY GOT SCORCHED DURING MANUFACTURING IN BOTH CASES PILLSBURY'S RESPONDENTS PROMISED TO SEND COUPONS SO THE CONSUMERS CAN TRY THE PRODUCTS AGAIN ON THE COMPANY'S DIME ABOUT HALF THE CALLS GENERATE A MAILED RESPONSE TO CUSTOMERS COUPONS RECIPE BOOKS OR BROCHURES ABOUT SUCH TOPICS AS WHICH PRODUCTS CONTAIN MONOSODIUM GLUTAMATE MOST PEOPLE CALL FOR INFORMATION SUCH AS HOW TO TELL A PRODUCT'S EXPIRATION DATE OR WHERE TO FIND A NEW ITEM THEY HEARD ABOUT SOME WANT COPIES OF THE LATEST PILLSBURY BAKEOFF WINNING RECIPES OR JUST REASSURANCE THAT THEY HAVE PREPARED THE FOOD PROPERLY IT'S QUICKLY APPARENT THAT SOME HAVEN'T BUT PILLSBURY NEVER CRITICIZES A CONSUMER FOR NOT FOLLOWING DIRECTIONS SOMETIMES CONSUMERS PHONE TO ASK IF THEY CAN EXPERIMENT WITH A PRODUCT AS IN CAN I ADD CHOCOLATE CHIPS TO YOUR BROWNIE MIX YES WHAT'S WRONG WITH YOUR FLOUR BEGINS A CRUSTYSOUNDING WOMAN EXPLAINING THAT SHE'S BEEN BAKING FOR YEARS AND NOW HER SOURDOUGH BREAD HAS BLISTERED IN THE OVEN MARY PAUSTIS A CONSUMER REP GENTLY PROBES AND DISCOVERS THE WOMAN RECENTLY GOT A NEW OVEN THE VERDICT IT WASN'T THE FLOUR'S FAULT THE WOMAN APOLOGIZES FOR CALLING CHILDREN CALL OFTEN MORE KIDS ARE HOME COOKING MS SHLOSBERG NOTES HOW DO I KNOW WHEN THIS IS DONE THEY OFTEN ASK SOME WONDER WHETHER THEY SHOULD LITERALLY FOLLOW THE DIRECTIONS THE BOX SAYS STIR BY HAND DO YOU REALLY WANT ME TO PUT MY HAND IN THERE FOR THOSE WHO SPEAK LITTLE OR NO ENGLISH PILLSBURY WHICH USES 800 LINES FROM SPRINT CAN DIAL AN AT&T NUMBER THAT HOOKS UP AN INTERPRETER IN A THREEWAY CALL WITH COMPANY AND CONSUMER INTERPRETERS FOR 140 LANGUAGES ARE AVAILABLE THEN THERE ARE THE FOREIGNSUBSTANCE CALLS NEXT TO TAMPERING AMONG THE MOST WORRISOME CONCERNS A PACKAGEDGOODS MAKER FACES I OPENED A 10POUND BAG OF FLOUR AND FOUND A SPLINTER OF WOOD IN IT ONE MAN FROM WASHINGTON STATE REPORTS IT WAS ABOUT 4 1/2 INCHES LONG NANCY NARR WHO TOOK THE CALL APOLOGIZES LEARNS THAT NO ONE WAS HURT OBTAINS THE PACKAGE'S UNIVERSAL PRODUCT CODE AND THEN ASKS IF THE CALLER WOULD MIND MAILING IN THE SPLINTER SHE'LL SEND HIM A POSTAGEPAID ENVELOPE HE READILY AGREES AND WHEN MS NARR PROMISES ALSO TO SEND OUT AN ARRAY OF COUPONS FOR PILLSBURY PRODUCTS HE THANKS HER AFTERWARD AT THE REPORTER'S REQUEST SHE CHECKS HER COMPUTER TO SEE IF THE MAN HAS CALLED WITH SIMILAR COMPLAINTS BEFORE CONSUMER NOT ON FILE THE COMPUTER REPORTS ONE WOMAN CALLS SO FREQUENTLY SEEKING COMPENSATION FOR WHAT SHE SAYS ARE MULTIPLE PRODUCT PROBLEMS THAT THE STAFF RECOGNIZES HER VOICE ONCE A MAN CALLED FROM A DULUTH MINN JAIL OFFERING TO DIVULGE A PRODUCT IDEA IF THE COMPANY PAID HIS BAIL NO THANKS EACH DAY'S CALLS ARE TAPED SHOULD AUTHORITIES NEED TO BE NOTIFIED BUT THE TAPES ARE REUSED MS SHLOSBERG MAY PLAY RECORDINGS FOR PRODUCT MANAGERS AND PLANT EMPLOYEES THOUGH SO THEY CAN HEAR WHAT CONSUMERS THINK CALLERS' PRIVACY IS PROTECTED AND NAMES AREN'T USED BY OTHERS IN THE COMPANY FOR SOLICITATIONS AS FOR RESPONDENTS ALL USE ONLY THEIR FIRST NAMES BUT THAT DOESN'T DETER CALLERS FROM SENDING THEM THANKYOU NOTES CHRISTMAS CARDS OR EVEN COOKIES 9404200106 940420 WHO'S NEWS US BANCORP US BANCORP PORTLAND ORE GERRY B CAMERON 56 YEARS OLD WAS NAMED CHAIRMAN OF THIS BANK HOLDING COMPANY MR CAMERON THE COMPANY'S CHIEF EXECUTIVE OFFICER AND A DIRECTOR SUCCEEDS ROGER L BREEZLEY 56 YEARS OLD WHO IS RETIRING BUT WILL REMAIN A DIRECTOR 9404200105 940420 TECHNOLOGY & HEALTH SPRINT REPORTS PROFIT CELLULAR SUBSCRIBERS LONGDISTANCE CLIMB KANSAS CITY MO SPRINT CORP REPORTED A FIRSTQUARTER PROFIT REFLECTING GAINS IN ITS CORE LONGDISTANCE OPERATIONS AS WELL AS SEVERAL ONETIME ITEMS THAT HURT PROFIT A YEAR AGO EARNINGS FOR THE LONGDISTANCE TELEPHONE CARRIER WERE 2274 MILLION OR 65 CENTS A SHARE COMPARED WITH A LOSS OF 413 MILLION OR 121 A SHARE REVENUE ROSE 12 TO 303 BILLION UP FROM 272 BILLION SPRINT SAID THAT EXCLUDING VARIOUS ONETIME ITEMS IN BOTH YEARS INCOME FROM CONTINUING OPERATIONS ROSE 33 TO 205 MILLION OR 59 CENTS A SHARE THE 1994 PROFIT INCLUDED A SIXCENTSASHARE NONRECURRING GAIN RELATED TO THE SALE OF ROCHESTER TELEPHONE CO STOCK HELD BY SPRINT THE 1993 PERIOD INCLUDED CHARGES TOTALING 567 MILLION OR 166 RELATED TO SPRINT'S MERGER WITH CENTEL CORP CERTAIN CHANGES IN ACCOUNTING PRINCIPLES REFINANCING MOVES AND A DISCONTINUED OPERATION SPRINT'S AGGRESSIVE MARKETING PUSH AND COSTCONTROLLING MOVES ARE LARGELY RESPONSIBLE FOR ITS IMPROVED PERFORMANCE SAID CHARLES SCHELKE AN ANALYST AT SMITH BARNEY SHEARSON LONGDISTANCE REVENUE ROSE 11 TO 166 BILLION FROM 149 BILLION WHILE MINUTES OF USE ROSE 11 SPRINT SAID SALES TO SMALL AND MEDIUMSIZED BUSINESS MARKETS SHOWED CONTINUED STRENGTH THE COMPANY ADDED NEARLY 75000 CELLULAR SUBSCRIBERS MORE THAN DOUBLE THE NUMBER ADDED A YEAR AGO LOCAL TELEPHONE REVENUE ROSE 17 TO 256 MILLION FROM 219 MILLION SPRINT'S SHARES CLOSED AT 35875 UP 875 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9404200104 940420 MANAGING YOUR CAREER BY TIMOTHY D SCHELLHARDT YOU AIM TO BECOME THE MICHAEL JORDAN OF BUSINESS A CORPORATE SUPERSTAR WHO STANDS AT THE CENTER OF YOUR ORGANIZATION'S FIRMAMENT BUT AT A RAPIDLY GROWING NUMBER OF COMPANIES CORPORATE STARS ARE BEING REWARDED FOR THEIR COOPERATIVE TALENTS AND NOT THEIR COMPETITIVE ONES TEAMWORK IS IN AT WL GORE & ASSOCIATES IN NEWARK DEL MAKERS OF GORETEX WATERPROOF FABRIC AND OTHER TEFLON PRODUCTS ALL 5600 EMPLOYEES EXCEPT THE PRESIDENT AND CORPORATE SECRETARY HAVE ONE TITLE ASSOCIATE THE OLDFASHIONED STARS WHO ROCKET TO THE TOP DON'T COME TO GORE SAYS E CHRIS DOUGHTY AN ASSOCIATE IN A TEAM SOCIETY ADVANCEMENT IS MEASURED NOT ONLY BY YOUR INDIVIDUAL CONTRIBUTIONS BUT BY HOW EFFECTIVE YOU ARE AS A COLLABORATIVE TEAM MEMBER SAYS DAVID EHLEN CHIEF EXECUTIVE OFFICER OF WILSON LEARNING IN EDEN PRAIRIE MINN THE MANAGEMENTTRAINING FIRM HAS STUDIED 4500 TEAMS IN MORE THAN 500 COMPANIES SO HOW CAN YOU STAR AND STILL MOVE AHEAD AS A MEMBER OF A TEAM THE TRANSITION WON'T BE EASY MANY HOLDERS OF MBA DEGREES ESPECIALLY THOSE EXPECTING TO ADVANCE QUICKLY HAVE DIFFICULTY ADJUSTING TO A TEAM STRUCTURE PEOPLE IMMEDIATELY FEEL THREATENED THEY WANT TO KNOW WHAT THEIR JOB WILL BE A YEAR FROM NOW SAYS JACK PADOVANO VICE PRESIDENT AND GENERAL MANAGER OF WOLFERMAN'S INC A SARA LEE CORP UNIT IN KANSAS CITY KAN THE SPECIALTY BREADPRODUCTS MANUFACTURER HAS SEEN DRAMATIC PRODUCTIVITY GAINS SINCE DIVIDING ITS 125 EMPLOYEES INTO TEAMS NEARLY FOUR YEARS AGO IT CAN BE JOLTING JUST TO DISCOVER THE IMPORTANCE OF TEAM PLAY JOHN CLIFFORD A TEAM SPECIALIST AT GENERAL SYSTEMS CONSULTING GROUP IN ANN ARBOR MICH REMEMBERS THE REACTION OF A VETERAN EMPLOYEE WHO HAD DONE VERY WELL BY WORKING ALONE A FEW MONTHS AFTER JOINING A TEAM THE EMPLOYEE SAID I'M LEARNING MY LESSON I JUST HAD MY FIRST NEGATIVE PERFORMANCE APPRAISAL IN 20 YEARS TO SUCCEED AS A TEAM PLAYER MANAGEMENT SPECIALISTS SAY YOU SHOULD GRASP QUICKLY HOW A GROUP WORKS AND HOW A TEAM GOES THROUGH SEVERAL STAGES BEFORE IT FINALLY GELS REALIZE THAT TEAMS OFTEN TAKE LONGER TO MAKE DECISIONS THAN YOU WOULD WORKING ALONE ADVISES MARGARET SEARS A MEMBER OF A SELFDIRECTED WORK TEAM AT BELL ATLANTIC IN ARLINGTON VA TEAM MEMBERS AT BELL ATLANTIC AND OTHER COMPANIES GO THROUGH EXTENSIVE TRAINING IN GROUP DYNAMICS DR SEARS SAYS TEAMS OFTEN MOVE FROM THE FORMING OR GETTINGTOKNOWYOU STAGE TO THE STORMING STAGE WHERE MEMBERS SPLIT OVER WAYS TO GET THINGS DONE AND SOMETIMES LOSE SIGHT OF THEIR GOALS NEXT A TEAM USUALLY PROGRESSES TO THE NORMING STAGE WHERE IT SETS NORMS FOR BEING PRODUCTIVE AND FINALLY TO THE PERFORMING STAGE WHERE MEMBERS UNDERSTAND WHAT EACH DOES AND HOW THE GROUP WORKS BEST TOGETHER UNDERSTANDING THESE PHASES CAN HELP YOU AND YOUR TEAM SUCCEED SOONER DR SEARS AN ORGANIZATIONALDEVELOPMENT SPECIALIST ALSO SUGGESTS THAT YOU UNDERSTAND THE DIFFERENCE BETWEEN HEALTHY AND DESTRUCTIVE COMPETITION COMPETITION AMONG TEAMS FOR INSTANCE CAN BE HARMFUL AND SHE RECOMMENDS THAT TEAMS ESTABLISH THEIR OWN GOALS TO SAY DO BETTER NEXT MONTH THAN THIS MONTH AUBREY DANIELS AN ATLANTA PSYCHOLOGIST AND MANAGEMENT CONSULTANT AGREES HE FAVORS STAMPING OUT EMPLOYEE OF THE MONTH RECOGNITION AWARDS BECAUSE HE BELIEVES THE PRACTICE HURTS TEAMORIENTED RESULTS YOU MUST EARN RECOGNITION OTHER WAYS QUITE FRANKLY GET NOTICEDAS A VALUABLE RESOURCE TO YOUR TEAM RECOMMENDS DARREL RAY A WORKTEAM CONSULTANT IN SHAWNEE KAN AND A BELL ATLANTIC ADVISER HE RECALLS ONE BELL ATLANTIC TEAM MEMBER WHO TOOK EXTRA TIME TO TRAIN HER NEW COLLEAGUES HELPED RESOLVE TEAM CONFLICTS AND DID EXTRA RESEARCH ABOUT A CUSTOMER'S PROBLEM SHE WAS ALWAYS LOOKING FOR WAYS TO ENHANCE HER TEAM'S PERFORMANCE BY NOT GRANDSTANDING OR TAKING A MICHAEL JORDAN ROLE SHE BECAME MICHAEL JORDAN FOR HER TEAM DR RAY SAYS THE RESULT SHE WON A PROMOTION AS SUPERVISOR IN ANOTHER DEPARTMENT WITHOUT TEAMS YOUR ABILITY TO SHARE INFORMATION WITH TEAMMATES ALSO MAY INFLUENCE YOUR SUCCESS IF YOU DON'T SHARE INFORMATION OUT OF FEAR THAT SOMEONE MIGHT USE IT TO GET AHEAD OF YOU THEN YOU AND YOUR TEAM ARE DESTINED FOR TROUBLE SAYS DR RAY HE ADDS A TRUE TEAM MEMBER DOESN'T GET ANYWHERE WITHOUT A TEAM IN ADDITION WORKTEAM CONSULTANTS ADVISE SETTING SEVERAL PERSONAL GOALS THAT WILL HELP YOUR TEAM PERHAPS DECIDE THAT YOU WANT TO MASTER FIVE OF SEVEN SKILLS ON YOUR TEAM WITHIN 18 MONTHS OR SET A PRODUCTIVITY MARK OR PLEDGE TO TEACH THREE TEAM MEMBERS ABOUT INVENTORY SPREADSHEETS THIS QUARTER BECAUSE THE TEAM CONCEPT IS STILL RELATIVELY NEW MOST COMPANIES ALTER THEIR SYSTEMS CONSTANTLY FEW HAVE FIGURED OUT THE BEST WAY TO REWARD TEAM MEMBERS YOU MAY NEED TO TAKE MUCH OF THIS CORPORATE FIDGETING IN STRIDE WHEN YOUR PAY IS INVOLVED HOWEVER THAT IDEA CAN BE HARD TO SWALLOW A RECENT SURVEY OF 248 LARGE US FIRMS BY HAY GROUP A PHILADELPHIA CONSULTING FIRM FOUND THAT 87 WERE VERY PLEASED WITH TEAMS BUT ONLY 47 FELT GOOD ABOUT THEIR TEAMBASED COMPENSATION SOME INSIST YOU'LL GAIN BENEFITS FROM THE TEAM EXPERIENCE THAT WILL OUTWEIGH ANY MISGIVINGS ABOUT COMPENSATION FOR ME THERE'S A REAL SENSE OF HELPING MY TEAMMATES GROW WHILE DEVELOPING MYSELF SAYS ROBERT TILGHMAN A CHEVRON PETROLEUM ENGINEER AND TEAM MEMBER IN NEW ORLEANS I FEEL LIKE A SUPERSTAR 9404200102 940420 YOUR MONEY MATTERS LONGTERM INVESTORS CAN REAP REWARDS FROM BUYING STOCKS DURING BEAR MARKETS BY KAREN SLATER DAMATO STAFF REPORTER OF THE WALL STREET JOURNAL IF YOU'RE AVOIDING BUYING STOCKS BECAUSE YOU FEAR A BEAR MARKET HAS BEGUN YOU COULD BE MISSING OUT ON A GOOD OPPORTUNITY FOR LONGTERM INVESTORS EVEN A PROLONGED DOWNTURN CAN BE MUCH LESS OF A NIGHTMARE THAN ONE MIGHT THINK THE TRICK IS TO DEVELOP A PLAN FOR INVESTING ON A REGULAR BASIS AND NOT PANICKING EVERY TIME THE DOW JONES INDUSTRIAL AVERAGE FALLS 40 OR 50 POINTS SOME OF YOUR BEST BUYS ARE GOING TO BE DURING A BEAR MARKET SAYS MICHAEL VAN DEN AKKER A SAN FRANCISCOBASED PARTNER AND FINANCIAL PLANNER WITH ACCOUNTANTS PRICE WATERHOUSE THE BEARMARKET BUYER IS ALSO SURE OF BEING IN THE MARKET FOR THE REBOUND TRUE IT TAKES AN IRON STOMACH TO KEEP PLOWING YOUR HARDEARNED MONEY INTO THE STOCK MARKET AS PRICES TUMBLE FOR EVERY 100 YOU INVEST YOU MAY ONLY HAVE 80 OR 90 A FEW MONTHS LATER SAYS LAURENCE B SIEGEL A MANAGING DIRECTOR OF THE CHICAGO RESEARCH AND CONSULTING FIRM OF IBBOTSON ASSOCIATES INC IT FEELS TERRIBLE YET PEOPLE WHO ARE INVESTING FOR RETIREMENT OR OTHER LONGTERM GOALS ARE CLEARLY BETTER OFF INVESTING ALL THE WAY DOWN IN A BEAR MARKET THAN NEVER VENTURING INTO STOCKS AT ALL SAYS JOHN MARKESE PRESIDENT OF THE CHICAGOBASED AMERICAN ASSOCIATION OF INDIVIDUAL INVESTORS TO GET AN IDEA OF WHAT BUYING IN A STEEP DOWNTURN MIGHT BE LIKE CONSIDER THE BRUISING BEAR MARKET OF 19731974 THE WORST THIS COUNTRY HAS EXPERIENCED SINCE THE 1930S STANDARD & POOR'S 500STOCK INDEX TUMBLED 43 EVEN WITH DIVIDENDS REINVESTED IT WASN'T UNTIL MID1976 THAT THE INDEX REBOUNDED TO ITS DECEMBER 1972 LEVEL BUT AS DIFFICULT AS THAT PERIOD WAS A PERSON WHO HAD BEEN STEADILY INVESTING IN STOCKS WOULD HAVE DONE PRETTY WELL AN ANALYSIS PREPARED BY IBBOTSON FOR THIS NEWSPAPER SHOWS INDEED BY JANUARY 1976 THE PERSISTENT STOCKMARKET INVESTOR WOULD HAVE COME OUT AHEAD OF SOMEONE WHO HAD BEEN PUTTING THE SAME REGULAR AMOUNTS INTO TREASURY BILLS AND THAT WAS IN A PERIOD WHEN THE BILLS PAID 6 OR 7 A YEAR THE IBBOTSON ANALYSIS ASSUMED A HYPOTHETICAL INVESTOR STARTED PUTTING 100 A MONTH INTO STOCKS AS REPRESENTED BY THE S&P 500 IN JANUARY 1973 BY THE TIME THE MARKET BOTTOMED IN SEPTEMBER 1974 THIS PERSON HAD INVESTED A TOTAL OF 2100 AND HELD STOCKS WORTH LESS THAN 1500 IT CLEARLY WASN'T A PLEASANT TIME FOR THE INVESTOR MR SIEGEL DUBS MS STOCK BUT SEVEN MONTHS LATER IN APRIL 1975 SHE WAS HOLDING STOCKS VALUED AT SLIGHTLY MORE THAN THE TOTAL 2800 SHE HAD INVESTED UP TO THEN THE S&P INDEX WAS STILL DOWN 19 FROM ITS DECEMBER 1972 PEAK SHE WAS AHEAD OF THE GAME ALTHOUGH THE STOCK MARKET WAS BEHIND MR SIEGEL SAYS BY THE FIRST QUARTER OF 1976 WITH THE STOCK MARKET JUST RETURNING TO ITS PREVIOUS HIGH MS STOCK HAD MORE MONEY THAN SHE WOULD HAVE IF SHE HAD INVESTED THAT 100 A MONTH IN INTERESTPAYING TREASURY BILLS THE ANALYSIS ASSUMED THAT THE STOCKS' DIVIDENDS AND BILL INTEREST WERE BOTH REINVESTED OF COURSE INVESTMENT HISTORY IS RIDDLED WITH UPS AND DOWNS AND THE INFLATIONRACKED 1970S WAS A POOR PERIOD FOR STOCKS BY THE END OF 1979 MS STOCK'S PORTFOLIO WOULD HAVE BEEN WORTH A LITTLE LESS THAN IF SHE HAD INVESTED IN TREASURY BILLS THE IBBOTSON STUDY FOUND BY THE END OF 1982 AFTER 10 YEARS OF INVESTING SHE WOULD HAVE BEEN MODESTLY AHEAD BUT MS STOCK WOULD HAVE GOTTEN A BIG PAYOFF IF SHE HAD STUCK IT OUT TO ENJOY THE EXTENDED BULL MARKET THAT FOLLOWED THE 1981 DOWNTURN AT THE END OF 1987 AFTER 15 YEARS HER TOTAL INVESTMENTS OF 18000 WOULD HAVE BEEN WORTH MORE THAN 55000 THAT WAS WELL AHEAD OF THE ALMOST 35000 SHE WOULD HAVE HAD IN TREASURY BILLS AND THAT WAS EVEN AFTER THE OCTOBER 1987 CRASH KNOCKED ABOUT 15000 OFF THE VALUE OF HER PORTFOLIO BY THE END OF 1992 A 20YEAR PERIOD MS STOCK'S 24000 WOULD HAVE BEEN WORTH ABOUT 124000 MORE THAN TWICE THE 54000 SHE WOULD HAVE ACCUMULATED IN TREASURY BILLS EVEN STARTING OUT IN ONE OF THE WORST MARKETS WE HAVE SEEN IN MODERN TIMES SHE WAS BETTER OFF IN STOCKS THAN SHE WOULD HAVE BEEN IN TREASURYS OVER TIME SAYS MICHAEL A MATTSON ANOTHER IBBOTSON MANAGING DIRECTOR PEOPLE WHO INVEST IN STOCKS REGULARLY GET THE BENEFIT OF DOLLAR COST AVERAGING BECAUSE A FIXED SUM INVESTED EVERY MONTH OR QUARTER BUYS MORE SHARES WHEN PRICES ARE DOWN THE INVESTOR'S AVERAGE COST PER SHARE ENDS UP BEING LOWER THAN THE AVERAGE PRICE IN THE MARKET OVER THE SAME PERIOD PROBABLY THE BIGGEST ADVANTAGE OF REGULAR INVESTING THOUGH IS IN OVERCOMING THE EMOTIONS THAT LEAD MANY PEOPLE TO BUY WHEN PRICES ARE HIGH AND NOT BUY OR EVEN SELL WHEN THEY ARE LOW IN A MARKET DOWNTURN PEOPLE SAY I AM NOT GOING TO THROW GOOD MONEY AFTER BAD' NOTES STEVEN E NORWITZ A VICE PRESIDENT OF MUTUALFUND COMPANY T ROWE PRICE ASSOCIATES INC IN BALTIMORE IN FACT HE SAYS IF IT WAS WORTH INVESTING WHEN PRICES WERE MUCH HIGHER IT IS CERTAINLY WORTH INVESTING NOW THE AUTOMATICINVESTMENT PLANS OFFERED BY A NUMBER OF NOLOAD FUND COMPANIES MAKE IT EASY TO GET STARTED ON A SYSTEMATIC INVESTING PROGRAM T ROWE PRICE FOR INSTANCE WAIVES ITS USUAL INVESTMENT MINIMUMS FOR PEOPLE WHO SIGN UP TO HAVE 50 OR MORE TRANSFERRED EACH MONTH FROM A BANK ACCOUNT TO ONE OF THE FIRM'S FUNDS MANY CORPORATE EMPLOYEES HAVE AN EVEN BETTER VEHICLE FOR SYSTEMATIC INVESTING COMPANY 401K RETIREMENT PLANS LET THEM INVEST IN MUTUAL FUNDS EACH PAY PERIOD WITH THE BENEFITS OF TAX DEFERRAL AND OFTEN A MATCHING COMPANY CONTRIBUTION TO BOOT 9404200101 940420 LEISURE & ARTS BOOKSHELF DWIGHT MACDONALD FREELANCE INTELLECTUAL BY LEE LESCAZE LIONEL ABEL ONCE REMARKED THAT IN THE 1930S NEW YORK WAS THE MOST INTERESTING PART OF THE SOVIET UNION IT WAS THE ONLY PLACE WHERE THE STALINTROTSKY DEBATE WAS CARRIED ON OPENLY PASSIONATELY AND IN THE CASE OF DWIGHT MACDONALD ALMOST CEASELESSLY MACDONALD 19061982 FOR A TIME A TROTSKYIST LATER A HOLDER OF SO MANY OTHER NONCOMMUNIST LEFTWING STANDS THAT SOMEONE DUBBED HIM THE FLOATING KIDNEY OF THE LEFT LIVED A LIFE ALMOST INCONCEIVABLE TODAY HE WAS A FREELANCE INTELLECTUAL NOT A FREELANCE WRITER LIVING BY THE GRACE OF HIS PROSE OR THE SKILL AND INTELLIGENCE OF HIS REPORTING BUT RATHER A WRITER WHO PROPOUNDED IDEAS HE WROTE WITH WIT AND SKILL BUT HE WROTE TO ARGUE TO ADVANCE HIS POINT OF VIEW MACDONALD ADMIRED IN TROTSKY THE COMBINATION OF A LITERARY MAN AND A POLITICAL ACTIVIST HE HOPED AS MICHAEL WRESZIN EXPLAINS IN A REBEL IN DEFENSE OF TRADITION BASIC BOOKS 590 PAGES 30 THAT LIKE THE EXILED TROTSKY HE COULD BE A WRITER WHOSE WORK MADE A DIFFERENCE MACDONALD WAS ONE OF THE DRIVING FORCES BEHIND THE PARTISAN REVIEW IN ITS EARLY YEARS BUT HE CAME CLOSEST TO HAVING THE KIND OF IMPACT HE SOUGHT WHILE EDITING POLITICS THE MAGAZINE HE RAN WITH HIS WIFE NANCY FROM 1943 TO 1949 IN THESE YEARS HE MOVED AWAY FROM MARXISM WHERE HIS HERO TROTSKY HAD FOUND HIM LACKING ONCE ALLEGEDLY REMARKING EVERY MAN HAS A RIGHT TO BE STUPID ON OCCASION BUT COMRADE MACDONALD ABUSES IT AFTER MARXISM MACDONALD PREACHED A MIXTURE OF PACIFIST ANARCHIST AND LIBERTARIAN VIEWS FINALLY GIVING UP POLITICS AND SWITCHING MUCH OF HIS ATTENTION TO POPULAR CULTURE THE NEW YORKER GAVE HIM A MUCH WIDER AUDIENCE AND HE SCORED NOTABLE SUCCESSES WITH LONG ARTICLES DENOUNCING SUCH CULTURAL BLIGHTS AS THE GREAT BOOKS OF THE WESTERN WORLD PROMOTED BY THE ENCYCLOPAEDIA BRITANNICA AND THE REVISION OF THE KING JAMES BIBLE LIKE GETTING YOUR MOTHER'S FACE LIFTED HE BEGAN HIS ARTICLE ABOUT THE FORD FOUNDATION WITH A SINCE MUCHQUOTED PARAGRAPH THE FORD FOUNDATION IS A LARGE BODY OF MONEY COMPLETELY SURROUNDED BY PEOPLE WHO WANT SOME THESE AND OTHER PIECES WERE PART OF MACDONALD'S CAMPAIGN IN DEFENSE OF CULTURE POLITICAL CORRECTNESS DIDN'T YET EXIST BUT MACDONALD WAS FIERCELY AGAINST IT TO A HOSTILE READER HE CONCEDED HE WAS A SNOB BECAUSE HE PUT CULTURE BEFORE DEMOCRACY IN A LONG ESSAY TITLED MASSCULT AND MIDCULT MACDONALD SPELLED OUT HIS ABHORRENCE OF EFFORTS TO DENIGRATE CULTURE IN THE NAME OF EGALITARIANISM MR WRESZIN A PROFESSOR OF HISTORY AT QUEENS COLLEGE AND THE GRADUATE CENTER OF THE CITY UNIVERSITY OF NEW YORK LIKES TO STRING TOGETHER QUOTES FROM MACDONALD WHERE IT WOULD BE QUICKER AND MORE INTERESTING TO HAVE A SUMMARY AND JUDGMENT OF THE ARTICLE IN QUESTION LATE IN LIFE MACDONALD WAS APPROACHED BY A MAN WRITING A BIOGRAPHY OF THE POET DELMORE SCHWARTZ WHO HAD BEEN ONE OF MACDONALD'S CLOSE FRIENDS MACDONALD GAVE THE BIOGRAPHER WONDERFUL ADVICE YOUR GENERAL APPROACH SHOULD BE THAT YOU'RE THE BOSS NOT THE FACTS AND THAT YOU HAVE NO OBLIGATION TO TRUDGE THROUGH SCHWARTZ'S LIFE MONTH BY MONTH AND RECORD ALL THE DETAILS YOU'VE SO ADMIRABLY DUG UP KICK THOSE FACTS AROUND IGNORE THEM IF THEY DON'T STRIKE YOU AS IMPORTANT TO YOUR VIEW IF MORE BIOGRAPHERS FOLLOWED SUCH ADVICE WE WOULD HAVE SHORTER BETTER BIOGRAPHIES BUT MR WRESZIN SEEMS TO INCLUDE A MENTION OF EVERYTHING HIS RESEARCH HAS TURNED UP HIS POINT OF VIEW WHILE ALWAYS FRIENDLY TOWARD MACDONALD OFTEN GETS LOST IN THE MASS OF DETAILS INCLUDING THOSE THAT REVEAL MACDONALD'S BOUTS OF SELFISHNESS DRUNKENNESS AND ABUSE OF FRIENDS ONCE HE AND HIS LOVER MADE PLANS TO GO AWAY TOGETHER FOR A WEEK AND ASKED THEIR RESPECTIVE SPOUSES TO TEND THE KIDS THE BOOK'S CONGESTED FEELING ISN'T HELPED BY MR WRESZIN'S PROSE AT ONE POINT MACDONALD'S SUMMER HOUSE HAS BEEN PARTIALLY BURNED AND HE IS CHASING A NEW LOVE MR WRESZIN WRITES IN ADDITION TO ATTENDING TO THE PROBLEMS AND COMPLICATIONS BROUGHT ABOUT BY THE FIRE IN THE HOUSE AND THE FIRE IN HIS HEART DWIGHT WAS ALSO HAVING GREAT DIFFICULTY GETTING OUT THE LONGAWAITED FRENCH EDITION OF POLITICS AFTER THE 1960S DURING WHICH HE WAS A PROMINENT AND PASSIONATE OPPONENT OF US INVOLVEMENT IN VIETNAM HE COULDN'T WRITE ANY MORE HIS WRITER'S BLOCK WAS A BITTER FINALE TO A CAREER THAT HAD PRODUCED SO MANY WORDS ON SO MANY DIFFERENT SUBJECTS MACDONALD BECAME INCREASINGLY ERRATIC AND DRANK MORE THAN EVER TODAY PROBABLY NOT VERY MANY PEOPLE UNDER 45 HAVE READ MACDONALD OF COURSE MOST OF HIS POLITICAL WORK HAS BEEN OVERTAKEN BY EVENTS BUT HIS WARNINGS AGAINST THE KIND OF THINKING THAT IS NOW POLITICALLY CORRECT SEEM VERY PRESCIENT SO DO HIS OBSERVATIONS THAT INTELLECTUALS WERE ADOPTING A BOBBYSOXER ATTITUDE TOWARD THOSE IN POWER FOR HIM AN INTELLECTUAL'S ROLE WAS TO BE A SKEPTIC NOT A CHEERLEADER ALL HIS LIFE MACDONALD TOOK IDEAS SERIOUSLY AND FOUGHT FOR THEM WITH WIT AND DETERMINATION IN TODAY'S POLITICALCHAT WORLD OF TOO MANY INFARCTED ACADEMICS LOGORRHEIC TALK SHOWS AND SOUNDBITE SENSIBILITIES HE WOULD HAVE BEEN A GIANT 9404200100 940420 SO YOU THINK IT'S EASY DRINKING BEER MORNING TO NIGHT FOREMOST AUTHORITY ON BREW DOES THAT FOR A LIVING BUT OH THOSE HANGOVERS BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL LONDON IT IS 930 ON THURSDAY MORNING AND MICHAEL JACKSON IS DRINKING AGAIN HE POURS HIMSELF A GLASS OF SPENDRUP'S OLD GOLD LAGER GOOD HEAD FORMATION HE TYPES ON HIS DUSTY COMPUTER HE SNIFFS A LIGHT HOPPINESS ON THE NOSE HE SIPS A FIRMBODIED MALTY START HE SIPS AGAIN LATE HOPPY DRYNESS FIRM IN THE MOUTH NOT DRY OR FLABBY ASSERTIVE AT THE END MR JACKSON CONTINUES DRINKING HE IS LOUNGING IN HIS CHAIR NOW NO LONGER TYPING THE FIRST BEER OF THE DAY ALWAYS TASTES TERRIFIC HE SAYS THIS ISN'T MICHAEL JACKSON THE KING OF POP DROWNING HIS SORROWS THIS IS ANOTHER MICHAEL JACKSON A 52YEAROLD BRITON WITH A WAISTLINE APPROACHING 44 INCHES AS THE WORLD'S LEADING BEER CRITIC HE HAS CLIMBED A MOUNTAIN IN SRI LANKA BECAUSE A BREWERY WAS THERE AND HE HAS FLOWN BY HELICOPTER TO PROMOTE A BREW ON AN ALASKAN ICE FLOE THE 10000 BEERS HE CLAIMS TO HAVE SAMPLED INCLUDE A DUTCH LAGER WITH CHLOROPHYLL AS AN INGREDIENT AND AN AMERICAN HOMEBREW WITH MARIJUANA IN IT I'VE BEEN CALLED THE POPE OF BEER THE DEAN OF BEER THE BARD OF BEER THE BEER EVANGELIST AND THE MAVEN OF MALT SAYS MR JACKSON A WOOLEN TIE DRESSING UP HIS BLUEDENIM SHIRT BEER IS MY GREAT PASSION IN LIFE HIS BOOKS INCLUDING THE 288PAGE BEER COMPANION HAVE SOLD MORE THAN TWO MILLION COPIES IN 15 LANGUAGES HE WRITES A NEWSPAPER COLUMN ON BEER FOR THE INDEPENDENT AND FOR SEVERAL BEER JOURNALS AND HE MADE A SIXPART TELEVISION DOCUMENTARY THE BEER HUNTER THAT HAS BEEN BROADCAST IN THE US AMONG OTHER COUNTRIES MR JACKSON'S CAUSE TO TAKE BEER FROM THE REALM OF HARD HATS FRATERNITY HOUSES AND BEACH PARTIES AND GIVE IT SOME OF THE CLASS WINE HAS THE TWO ARE EQUALLY HONORABLE HE SAYS HE BELIEVES THAT BEER BEFORE IT WAS COOPTED BY WORKING STIFFS WAS THE WINE OF THE NORTH WHERE GRAIN GROWS BETTER THAN GRAPES THE BEER HUNTER WAGES HIS CAMPAIGN FROM A CONVERTED SHED NEXT TO HIS MODEST HOUSE IN A MIDDLECLASS WEST LONDON NEIGHBORHOOD HE HAS PLASTIC CRATES AND EMPTY BOTTLES ON THE FLOOR A HALFEATEN BAG OF NUTS ON THE TABLE AND AN ANCIENT COMPUTER WITHIN EASY REACH OF THE BATHROOM HIS COLLECTION INCLUDES A BOTTLE OF LIMITEDEDITION BEER BREWED IN HIS HONOR AND A CERTIFICATE WELCOMING HIM TO THE KNIGHTS OF THE MASH PROFESSIONAL BEERDRINKING IS TRICKIER THAN THE AVERAGE BARFLY MIGHT THINK MR JACKSON SAYS HE TASTED 500 BREWS IN A SINGLE FIVEWEEK TRIP TO THE US WHICH HE CALLS HIS IRONMAN TOUR THIS DAY AFTER THE MORNING SAMPLINGS HE WILL VISIT OXFORD TO TAKE BREWERY TOURS AND DELIVER A SPEECH IN HIS CAPACITY AS PATRON OF THE OXFORD UNIVERSITY BEER APPRECIATION SOCIETY IN OXFORD A NERVOUS CHRIS MOSS OWNER OF WYCHWOOD BREWERY MEETS MR JACKSON'S TRAIN THE BEER HUNTER SENSIBLY TRIES NOT TO DRIVE WHILE RESEARCHING MR MOSS IS IN AWE HE'S THE BIGGEST NAME IN THE BEER WORLD THE BREWER WHISPERS WHEN THE BARD IS OUT OF EARSHOT MR JACKSON HOWEVER ISN'T IMPRESSED THE BREWING EQUIPMENT IS LEAKING AND LOOKS DIRTY TO HIM ONE OF THE SAMPLE BEERS HAS SOMETHING FLOATING IN IT OUT OF POLITENESS HE DOWNS A PINT ANYWAY THE SON OF A YORKSHIRE TRUCKER THE BEER HUNTER LEFT SCHOOL AT 16 TO WORK FOR A LOCAL PAPER WRITING THE SERIES THIS IS YOUR PUB HE BECAME A FULLTIME BEER WRITER 20 YEARS AGO WITH A CULTFOLLOWING AMONG THE GROWING RANKS OF MICROBREWERS AND HOMEBREWERS PARTICULARLY IN THE US HE CAN ALWAYS COUNT ON AN AUDIENCE WHEN MICHAEL JACKSON COMES TO TASTE YOUR BEER YOU LISTEN AND YOU LISTEN VERY CAREFULLY SAYS STEPHEN HINDY WHO GOT THE INSPIRATION FOR HIS BUSINESS NEW YORK'S BROOKLYN BREWERY FROM READING ONE OF MR JACKSON'S BOOKS MR JACKSON HASN'T CONVERTED EVERYONE OF COURSE HIS OWN LITERARY AGENT SUGGESTED HE WRITE A COLUMN FOR A MORE DOWNMARKET NEWSPAPER BEER IS JUST NOT AS COMPLEX AND SOPHISTICATED A DRINK AS WINE SAYS JAMES SUCKLING THE WINE SPECTATOR'S EUROPEAN CORRESPONDENT IT'S STILL SOMETHING JUST TO WASH DOWN FOOD OR TO QUENCH A THIRST THE BEER HUNTER HAS LITTLE PATIENCE WITH THESE LIFTTHEPINKIE CRITICS BEER HE SAYS HAS BEEN BELITTLED IN FAVOR OF WINE SINCE ROMAN TIMES BIG BREWERS WHOM MR JACKSON ACCUSES OF TURNING BEER INTO AN ALCOHOLIC SOFT DRINK ARE ALSO UNMOVED WHO'S HE WITH HIS NAME'S NOT FAMILIAR TO ME SAYS FRANK HAMSHER A SPOKESMAN FOR ANHEUSERBUSCH COS IN ST LOUIS WHICH MAKES BUDWEISER THE KING OF BEERS MR JACKSON GAVE BUD HIS LOWEST RATING SAYING IT HAS LOST SOME OF ITS ALREADY DELICATE HOP CHARACTER THE BEER HUNTER SAYS THE INDUSTRY NEEDS TO REGAIN ITS IDENTITY ITS SOUL ITS UNDERSTANDING OF WHAT BEER IS AFTER THE UNFORTUNATE OXFORD BREWERY VISIT MR JACKSON STOPS IN FOR A HALFPINT OF A DIFFERENT BREW AT A NEARBY PUB HE COMPARES IT TO A CRISP CHARDONNAY IT'S MOREISH HE SAYS IT MAKES YOU WANT MORE HE DOWNS ANOTHER HALFPINT NEXT HE IS OFF TO MORRELL'S BREWERY LTD IN OXFORD MR JACKSON SHOE UNTIED AND A MOLSON BAG ON HIS SHOULDER TOURS THE BREWERY AND KNOCKS BACK ANOTHER FEW PINTS AT THE BREWERY PUB A TIPSY INSURANCE EXECUTIVE TELLS MR JACKSON HOW MUCH HE ENJOYED HIS FILM ON POLISH BREWERIES THE BREWERIES WERE CZECH SUCH DEVOTED DRINKING HAS ITS OCCUPATIONAL HAZARDS THE SHEER PALATE FATIGUE IS A PROBLEM SAYS MR JACKSON WHO DRINKS BEER ON HIS DAYS OFF TOO HIS SAMPLING RECORD IS ABOUT 70 BEERS IN A DAY THOUGH HE HAD LITTLE MORE THAN A SWIG OF EACH UNLIKE SOME WINETASTERS HE SWALLOWS WHAT HE SAMPLES EXCEPT WHEN HE IS DOING A SCOTCH WHISKY TASTING A SIDELINE OF HIS THEN HE SPITS HE CONFESSES THAT AFTER THE 70 BEERS HE HAD DIFFICULTY READING HIS NOTES WHEN HE GOT HOME AND AS HIS CAREER ADVANCES SO DO HIS HEADACHES I SUFFER VERY BADLY FROM HANGOVERS HE CONFIDES BUT AS THE BEER HUNTER SEES IT A HANGOVER IS A SMALL PRICE TO PAY IF HIS WORK IS GOING TO MEAN EQUAL OPPORTUNITY FOR BEER AT THE BLACKTIE DINNER OF OXFORD'S BEER APPRECIATION SOCIETY WHERE MR JACKSON IS KNOWN AS THE GREAT ONE THE MENU INCLUDES WHEATBEER COCKTAILS LEEK MOUSSE WITH BEER STEAK WITH ALE AND CHEESE WITH STOUT EACH DISH ACCOMPANIED BY A BOTTLE OF THE BEER IN THE RECIPE FOR DESSERT THERE IS TOFFEE PUDDING WITH SCOTCH ALE AFTER DRINKING EACH OF THESE MR JACKSON RISES TO SPEAK HE TELLS THE STUDENTS HE IS PLEASANTLY SURPRISED NOT TO FIND ANY CLARET OR PORT WINE IS AN UNSOPHISTICATED DRINK HE SAYS THEY JUST STOMP ON GRAPES IN THEIR BARE FEET THE STUDENTS SHOUT HEAR HEAR MR JACKSON CONCLUDES BY DECLARING I'M PROBABLY PRETTY DRUNK NOW SO I'LL SIT DOWN AUTOGRAPH SEEKERS CIRCLE AND THEN THERE IS THE MATTER OF A NIGHTCAP IT IS MIDNIGHT BEFORE MR JACKSON GETS TO BED ABOUT 15 BEERS AFTER HIS DAY BEGAN HE POPS SOME ASPIRIN FOR HIS HEADACHE BUT RESOLVES TO BE UP AT 7 AM TO START AGAIN I WON'T GET BACK TO LONDON UNTIL MIDMORNING HE SAYS AND I'VE GOT ABOUT 100 WHISKIES TO TASTE 9404200099 940420 INSIDER TRADING SPOTLIGHT FRIDAY WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED EQUAL TO 90 OR MORE OF SHARES SOLD SHOLDS OTHER CLASS OF STOCK XREFLECTS SHARES HELD INDIRECTLY LATE FILINGBASE PERIOD IS LESS THAN 3 YEARS ZOTHER BOUGHT OR SOLD DURING THE LAST 12 WEEKS EXPRESSED AS A PERCENTAGE CHANGE OF ONLY THEIR HOLDINGS AT THE START OF THE PERIOD REFLECTS COMPANIES FOR WHICH FILINGS MADE LAST WEEK SHOWED SOME INSIDER ACTIVITY DURING THE LATEST 12 WEEKS EXCLUDED COMPANIES WITH TOTAL TRADES VALUED UNDER 75000 OPTIONRELATED SALES UNEXERCISED OPTIONS COMPANIES WITH FEWER THAN THREE BUYERS OR SELLERS OR FEWER BUYERS OR SELLERS THAN THE HISTORICAL AVERAGE FOR THE PERIOD 9404200098 940420 LEISURE & ARTS MUSIC NOTES OF DISCORD IN THE ORCHESTRA PIT BY BARBARA JEPSON IN TIMES PAST MUSIC DIRECTORS HAD THE RIGHT TO FIRE ORCHESTRA MEMBERS AT WHIM THERE WAS THE AUTOCRATIC FRITZ REINER REMEMBERED FOR HIS TINY PRECISE BEAT AND ABRUPT CAUSTIC DISMISSALS THERE WERE LESSER KNOWN BUT NO LESS CAPRICIOUS CONDUCTORS SUCH AS ALEXANDER HILSBERG THE MUSIC DIRECTOR OF THE NEW ORLEANS PHILHARMONIC FROM 1952 TO 1960 WE CALLED HIM THE AJAX MAN' RECALLS LEW WALDECK A FORMER PHILHARMONIC TUBA PLAYER WHO IS NOW DIRECTOR OF SYMPHONIC SERVICES FOR THE AMERICAN FEDERATION OF MUSICIANS HE MADE A CLEAN SWEEP EVERY SEASON TODAY'S MUSIC DIRECTORS RETAIN THE AUTHORITY TO FIRE ORCHESTRA MEMBERS FOR JUST CAUSE VIOLATIONS SUCH AS ABSENTEEISM OR SUBSTANCE ABUSE BUT SINCE THE 1960S THEIR ABILITY TO DISCHARGE SAY A TRUMPETER WHOSE HIGH NOTES ARE AT A LOW POINT HAS BEEN INCREASINGLY CURTAILED BY CONTRACT GAINS WON BY THE AMERICAN FEDERATION OF MUSICIANS IT TOOK ME THREE YEARS SAYS VICTORIA BOND MUSIC DIRECTOR OF THE ROANOKE SYMPHONY ORCHESTRA TO DISMISS A CLARINETIST WHOSE MUSICIANSHIP AND PREPARATION WERE CLEARLY LACKING THE PROBLEM WAS THAT HE HAD FRIENDS ON THE PEERREVIEW COMMITTEE INDEED MORE THAN HALF OF THE 75 AMERICAN ORCHESTRAS WITH ANNUAL BUDGETS OF MORE THAN 2 MILLION HAVE SOME TYPE OF PEERREVIEW COMMITTEE WHICH CAN EITHER UPHOLD OR REJECT A MUSIC DIRECTOR'S DECISION TO FIRE A TENURED PLAYER FOR ARTISTIC REASONS IF A SPECIFIED MAJORITY OF THE COMMITTEE CANNOT AGREE SOME OF THESE INSTITUTIONS GIVE AN ARBITRATOR THE FINAL SAY JUST WHO BENEFITS FROM THE PEERREVIEW SYSTEM IS DISPUTED LEONARD LEIBOWITZ A LABOR LAWYER WHOSE CLIENTS INCLUDE THE INTERNATIONAL CONFERENCE OF SYMPHONY & OPERA MUSICIANS ICSOM AND LOCAL 802 OF THE AMERICAN FEDERATION OF MUSICIANS CLAIMS THAT IN AT LEAST 80 OF THE CASES BROUGHT TO THE PEERREVIEW COMMITTEE'S ATTENTION THE PLAYERS UPHOLD THE CONDUCTOR'S REQUEST THEY HAVE AS MUCH CONCERN FOR THE QUALITY OF THE ORCHESTRA AS THE MUSIC DIRECTOR UNFORTUNATELY HE HAS NO STATISTICS TO PROVE HIS CONTENTION ATTORNEY MARTIN OPPENHEIMER WHO REPRESENTS MANAGEMENT IN ITS NEGOTIATIONS WITH THE NEW YORK PHILHARMONIC AND THE NEW YORK CITY OPERA AND SERVES ON THE BOARDS OF SEVERAL ARTS ORGANIZATIONS FINDS THAT ESTIMATE OVERLY OPTIMISTIC THERE IS A CONSIDERABLE PREJUDICE ON THE PART OF PEERREVIEW COMMITTEES HE MAINTAINS TO SUPPORT THEIR COLLEAGUES HE TOO LACKS SUPPORTING STATISTICS WHATEVER THE FACTS REPLACING A MUSICIAN WHOSE PLAYING NO LONGER PLEASES CAN BE AN EMOTIONALLY WRENCHING COSTLY AND PROTRACTED PROCESS FIRST MOST CONTRACTS RIGHTFULLY MANDATE THAT PLAYERS BE GIVEN ADEQUATE WARNING AND OPPORTUNITY TO CORRECT PERCEIVED MUSICAL DEFICIENCIES USUALLY THAT MEANS A THREE TO SIXMONTH TRIAL PERIOD ALTHOUGH THE NORTH CAROLINA SYMPHONY ALLOWS A WARNED PLAYER TO TAKE OFF A REGULAR SEASON FOR MUSICAL STUDY FOLLOWED BY REINSTATEMENT FOR A SUBSEQUENT SEASON BEFORE ITS MAESTRO CAN CONTINUE TERMINATION PROCEEDINGS SECOND TERMINATION PROCEEDINGS MAY PROVOKE LEGAL ACTION AFTER MUSIC DIRECTOR YOEL LEVI FAILED TO OUST A HARPIST IN THE ATLANTA SYMPHONY ORCHESTRA ON MUSICAL GROUNDS HE TRIED TO FIRE HER FOR INSUBORDINATION IN THIS CASE PLAYING TOO LOUD A CURIOUS CHARGE GIVEN THE NATURE OF THE INSTRUMENT THE HARPIST AND ANOTHER FIRED COLLEAGUE FILED AN UNSUCCESSFUL AGEDISCRIMINATION SUIT AGAINST THE ORCHESTRA WITH THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION SHE LATER FAILED A COMPETENCY HEARING AN ORCHESTRA REPRESENTATIVE SAID THAT MR LEVI WAS NOT AVAILABLE FOR DISCUSSION ON THIS SUBJECT BUT IN A 1991 INTERVIEW WITH THE INDEPENDENT A LONDON NEWSPAPER HE WAS QUOTED AS SAYING THAT THE UNIONS IN AMERICAN ORCHESTRAS ARE VERY STRONG TO GET RID OF PLAYERS IS NEXT TO IMPOSSIBLE YOU HAVE TO FIND OTHER SOLUTIONS THE QUICKEST LEASTPAINFUL STRATEGY FAVORED IN A MAJORITY OF CASES IS TO BYPASS THE PEERREVIEW COMMITTEE WITH A BUYOUT IN A PRIVATE MEETING THE MUSIC DIRECTOR AND AN ADMINISTRATOR WARN THE PLAYER OF POTENTIAL DISMISSAL AND OFFER AN ATTRACTIVE SEVERANCE PACKAGE IN MEDIUMBUDGET ORCHESTRAS THIS MAY BE A YEAR'S SALARY 35000 TO 50000 IN LARGER MORE PRESTIGIOUS ORCHESTRAS THE PACKAGES RANGE FROM 75000 TO 250000 OR MORE WITH SOME CONTINUATION OF HEALTH BENEFITS ANOTHER COMMON TACTIC PARTICULARLY WHERE MORE VISIBLE PLAYERS ARE CONCERNED IS TO HIRE A COPRINCIPAL THEORETICALLY COPRINCIPALS SHARE THE SAME TITLES AND MUSICAL RESPONSIBILITIES BUT INCREASINGLY COPRINCIPALS ARE A SUBTERFUGE TO ACHIEVE ARTISTIC GOALS WITHOUT THE HASSLE OF DISMISSAL MUCH OF THE TIME OBSERVES MR LEIBOWITZ YOU'LL FIND THAT THE NEW PERSON IS DOING THE HOTSYTOTSY SOLOS DEMOTION MAY BE EMPLOYED WHEN AGERELATED AILMENTS OR OCCUPATIONAL DISORDERS HAVE IMPAIRED THE LEVEL OF PLAYING STRING PLAYERS ARE TYPICALLY MOVED BACK IN THEIR SECTIONS A PRINCIPAL BASSOONIST WITH THREE YEARS LEFT BEFORE RETIREMENT MAY BE DEMOTED TO SECOND POSITION DEMOTION IS ALSO CONSIDERED THE HUMANE WAY TO DEAL WITH AN INDIVIDUAL WHOSE PLAYING WAS SATISFACTORY WHEN HIRED BUT BECOMES UNACCEPTABLE AFTER AN ORCHESTRA IMPROVES THAT APPEARS TO HAVE BEEN THE SITUATION WITH THE TWO DISMISSALS AND AT LEAST TWO INDUCED RETIREMENTS IN ATLANTA ACCORDING TO SOURCES FAMILIAR WITH THE SITUATION MR LEVI'S ACTIONS WERE MUSICALLY VALID BUT HIS HEAVYHANDED TECHNIQUES FOSTERED A LOT OF ANIMOSITY AMONG PLAYERS THE MOST OFFENSIVE TACTIC AND THE MOST DIFFICULT TO DEFEND AGAINST IS HARASSMENT HOUNDING A PLAYER INTO RESIGNING A BRASS PLAYER IN ANOTHER MAJOR ORCHESTRA ACCUSED THE MUSIC DIRECTOR OF PRESSURING HIS PRINCIPAL PLAYERS INTO PRESSURING SECTION MEMBERS HE PUBLICLY DERIDES PLAYERS IN REHEARSALS AND CHEWS THEM OUT PRIVATELY IN HIS OFFICE THE RESULT IS A LOT OF EARLY RETIREMENTS LOST IN ALL THIS IS THE ISSUE OF ARTISTIC EXCELLENCE AND HOW IT IS UNDERMINED BY THE LESS ETHICAL OF THE ABOVE METHODS AND BY THE CONTINUED USE OF PLAYERS PAST THEIR PRIME YET MOST MUSICIANS AND MANAGEMENT SOURCES BELIEVE THE CURRENT SYSTEM OFFERS THE BEST BALANCE BETWEEN THE TWO CAMPS UNION REGULATIONS SAYS BRAD BUCKLEY A ST LOUIS SYMPHONY CONTRABASSOONIST WHO CHAIRS ICSOM PREVENT ARBITRARY DISMISSALS BUT IF A PLAYER'S SKILLS ARE GONE MORE OFTEN THAN NOT THE MUSIC DIRECTOR STILL PREVAILS THE BIG DIFFERENCE IS THAT TODAY SOME OF THE AGGRIEVED PLAYERS ARE CLEANING UP ON THE WAY OUT MS JEPSON IS A MUSIC WRITER IN NEW YORK 9404200097 940420 LEISURE & ARTS THE GALLERY THE ART OF ANXIETY BY DEBORAH SOLOMON MINNEAPOLIS BRUCE NAUMAN OFTEN HAS BEEN DESCRIBED AS A VASTLY INFLUENTIAL ARTIST BUT IT WASN'T UNTIL I SAW THE RETROSPECTIVE OF HIS WORK NOW AT THE WALKER ART CENTER HERE THAT I CAME TO REALIZE HIS LEGACY HAS LITTLE TO DO WITH THE USUAL ELEMENTS OF COLOR OR LINE RATHER IT BELONGS TO THE REALM OF ANXIETY HE IS A PIONEER OF WHAT CAN FAIRLY BE CALLED DYSFUNCTIONAL ART LONG BEFORE VICTIMHOOD CAME INTO FASHION AND ARTISTS BEGAN FLAYING THE SMOOTHLY PAINTED SKIN OF FORMALISM TO EXPOSE THEIR PSYCHOLOGICAL WOUNDS MR NAUMAN COULD BE FOUND HOWLING AT THE MOON AND AT HIS VIEWERS TOO CONSIDER THE WORK OF ART INDELICATELY TITLED GET OUT OF MY MIND GET OUT OF THIS ROOM 1968 TO EXPERIENCE THE PIECE THE VIEWER ENTERS A TINY WHITE CHAMBER WITH NOTHING IN IT EXCEPT A NAKED BULB SUSPENDED FROM THE CEILING AS IN A PRISON CELL TWO CONCEALED SPEAKERS EMIT A MALE VOICE GRUFF AND ANIMALISTIC CHANTING THE INHOSPITABLE IMPERATIVE OF THE WORK'S TITLE GET OUT OF MY MIND FOR WHOM IS THIS HARSH SOLILOQUY INTENDED ARE WE HEARING THE VOICE OF A GLOOMY ADOLESCENT SLUMPED ON HIS UNMADE BED DETERMINED TO BANISH HIS APRONED MOTHER FROM HIS LAIR OR ARE WE RATHER IN THE PRESENCE OF A GROWNUP ARTIST WHO DOES NOT MUCH LIKE HIS INQUISITIVE AUDIENCE AND WOULD PREFER THAT WE LEAVE HIM ALONE MR NAUMAN WHO'S NOW 52 ISN'T INTERESTED IN CREATING THE PROVERBIAL OBJECT OF BEAUTY FOR THE SPACE ABOVE THE LIVING ROOM MANTELPIECE HE WORKS IN A WIDE VARIETY OF MEDIA FROM VIDEOTAPE AND AUDIOTAPE TO NEON AND ASSEMBLAGE AND HIS SEEMINGLY DISPARATE EFFORTS SHARE A RUDE SWAGGER IF THEY WERE ANY MORE AGGRESSIVE THEY WOULD PULL A KNIFE ON US MR NAUMAN LIVES IN GALISTEO NM WITH HIS WIFE THE PAINTER SUSAN ROTHENBERG AND IS A THIN TACITURN MAN FOND OF WEARING JEANS AND COWBOY BOOTS SOME OF THE ROMANCE OF THE WILD WEST CAN BE FOUND IN THE WALKER SHOW IT WAS CO ORGANIZED BY KATHY HALBREICH THE MUSEUM'S DIRECTOR AND NEIL BENEZRA THE CHIEF CURATOR OF THE HIRSHHORN MUSEUM IN WASHINGTON WHERE THE SHOW WILL TRAVEL BETWEEN STOPS IN LOS ANGELES AND NEW YORK WHILE NOT EVERY WORK IN THE SHOW SUCCEEDS WE NEVER DOUBT THAT WE ARE IN THE PRESENCE OF AN APPEALINGLY RAW AND RECKLESS SPIRIT YET RATHER THAN PLAYING THE ROLE OF THE INVULNERABLE COWBOY IN HIS WORK MR NAUMAN TURNS THE LEGEND ON ITS HEAD A FEAR OF DEATH AND MADNESS HAUNTS HIM AT EVERY TURN IF HE HAD A MANIFESTO IT WOULD BE CLOWN TORTURE 1987 A VIDEO INSTALLATION IN WHICH FIVE SEPARATE SCREENS FLASH WITH FOOTAGE OF THE ARTIST DRESSED UP AS A HAPLESS CIRCUS CLOWN THE CLOWN DOES NOTHING BUT SCREAM AND CRY UNABLE TO CONTROL HIMSELF EVEN IN A PUBLIC RESTROOM HE'S THE VIDEO VERSION OF WATTEAU'S GILLES THE FAMOUS COMIC ACTOR WHO MAY BE THE MOST SHEEPISH AND SELFCONSCIOUS FIGURE IN THE HISTORY OF ART MR NAUMAN HAS NEVER BEEN A HOUSEHOLD NAME PROBABLY BECAUSE HE WORKS EXTENSIVELY IN VIDEO AN INTRINSICALLY PROBLEMATIC MEDIUM VIDEO ART IN MY MIND IS THE BASTARD CHILD OF TELEVISION AND PAINTING AND IT INHERITED THE VIRTUES OF NEITHER IT LACKS THE FASTPACED NARRATIVE OF TELEVISION AS WELL AS THE OPTICAL PLEASURES OF PAINTING YET MR NAUMAN'S PLOTRICH VIDEOS STEAL HIS RETROSPECTIVE AND ARE LIKELY TO WIN CONVERTS AMONG THOSE WHO PREFER THEIR ART SOUNDLESS AND STILL MR NAUMAN CAME OF AGE IN THE '60S WHEN ART WENT MINIMAL BUT HE HAD NO INTEREST IN FABRICATING THE REQUISITE SLEEK METAL CUBES HIS EARLY SCULPTURES WERE MADE FROM SOFT MATERIALS LIKE RUBBER AND WAX AND HAD A FORLORN LOOK IN RETROSPECT IT'S EASY TO SEE HOW THEY AUGUR THE MORBIDITY OF HIS MORE RECENT EFFORTS SUCH AS CAROUSEL 1988 WHICH MIGHT BE DESCRIBED AS A FLOATING SLAUGHTERHOUSE IN THIS ROOMSIZE SCULPTURE THE YELLOWHUED CASTS OF DEAD ANIMALS A BOBCAT A BEAR A DEER AND TWO COYOTES GLIDE THROUGH SPACE LIKE THE BRIGHTLY PAINTED HORSES IN A CARNIVAL CAROUSEL THE PIECE IS A CROSS BETWEEN CALDER'S LIGHTASAIR MOBILES AND DANTE'S INFERNO MR NAUMAN'S PENCHANT FOR EXCESS CAN AT TIMES GRATE AND HIS AMBITION IS NOT ALWAYS UP TO THE LEVEL OF HIS ANXIETY THE WALKER SHOW INCLUDES MORE THAN A FEW WORKS THAT LACK THE LEAST VISUAL INTEREST AMONG THEM ARE THE SOCALLED TUNNEL PIECES IN WHICH STRIPS OF WOOD AND FIBERGLASS ARE HEAPED ON THE FLOOR LIKE RANDOM MATERIALS AT A CONSTRUCTION SITE THEY FAIL TO CONVEY THE SENSE OF ENTRAPMENT SAID TO HAVE INSPIRED THEM IN SPITE OF SUCH MISSES MR NAUMAN IS TO BE APPLAUDED FOR THE EXTRAVAGANT TENOR OF HIS WORK FOR TOO LONG NOW CONTEMPORARY ART HAS BEEN AT AN IMPASSE EMBALMED IN EITHER ARID POLITICS OR COOL IRONY MR NAUMAN WANTS TO TAKE ART BACK FROM THE MUMMIES OR SO ONE MIGHT THINK GLANCING AT THE COVER OF THE EXHIBITION CATALOG WHICH SHOWS A FRAME FROM ONE OF HIS VIDEOS A CLOSEUP OF A HUMAN EAR AGLOW IN THOUSANDS OF TINY ELECTRONIC PIXELS OR DOTS PRESUMABLY IT'S A REFERENCE TO VINCENT VAN GOGH WHO BY CUTTING OFF HIS EAR CAME TO PERSONIFY THE ROMANTIC MYTH OF THE SUFFERING ARTIST IT WASN'T THAT LONG AGO THAT VAN GOGH WAS DISMISSED AS SO MUCH HOLLYWOOD FLUFF BUT APPARENTLY ARTISTS REVERE HIM AGAIN AND WHO CAN BE SURPRISED VAN GOGH IS THE ORIGINAL DYSFUNCTIONAL GUY 9404200096 940420 THE FUTURE OF THE FED BY CHARLES W KADLEC WITH MONDAY'S QUARTERPOINT RISE IN SHORTTERM INTEREST RATES THE THIRD SUCH RISE IN 2 MONTHS MONETARY POLICY SHOWED ITSELF TO BE STILL VERY MUCH IN PLAY THE DEPARTURE OF TWO MEMBERS OF THE FEDERAL RESERVE'S BOARD OF GOVERNORS AND A SHIFT IN POLICY TOWARD HIGHER SHORTTERM INTEREST RATES HAS BROUGHT INTO QUESTION THE FED'S COMMITMENT AND ABILITY TO SUSTAIN ITS RECORD OF PRICE STABILITY AS LONG AS THIS DISTRUST PERSISTS INTEREST RATES WILL REMAIN VOLATILE AND CONTINUE THEIR UPWARD TREND FUNDAMENTAL ANALYSIS ALONE IS INADEQUATE TO UNDERSTANDING THE RECENT SHARP INCREASE IN INTEREST RATES OR IN ANTICIPATING THE FUTURE COURSE OF EVENTS THE SITUATION IS SOMEWHAT ANALOGOUS TO THAT OF A PUBLIC COMPANY THAT IS IN PLAY BECAUSE OF A CONTESTED TAKEOVER WHEN THIS OCCURS TRADITIONAL TOOLS OF ANALYSIS SUCH AS A COMPANY'S BOOK VALUE PAST PROFITS EXPECTED EARNINGS AND HISTORIC PRICE/EARNINGS RATIOS ARE NO LONGER SUFFICIENT FOR ANTICIPATING THE PRICE OF THE STOCK AT SUCH TIMES PREDICTING FUNDAMENTALS REQUIRES SHIFTING THE ANALYSIS TO THE POLITICAL DOMAIN AND ASKING A DIFFERENT SET OF QUESTIONS WHO ARE THE KEY PLAYERS CAN THEY GET THE DEAL DONE IF SO WHAT ARE THEIR INTENTIONS ABOUT THE DESIGN AND DIRECTION OF THE COMPANY MONETARY POLICY IS IN JUST SUCH A PERIOD TRADITIONAL MEASURES OF INFLATIONARY PRESSURES ARE PROVING USELESS IN UNDERSTANDING THE RECENT SUDDEN RISE AND VOLATILITY IN INTEREST RATES IN JANUARY THERE WAS ZERO CONSUMER PRICE INFLATION GLOBAL COMPETITIVE FORCES ARE FAR MORE POWERFUL TODAY THAN THEY WERE DURING THE INFLATIONARY 1970S JUST LAST MONTH OPEC'S FAILURE TO REDUCE OIL OUTPUT LED TO A DECLINE IN OIL PRICES FROM ALREADY LOW LEVELS JUST THE OPPOSITE OF WHAT OCCURRED IN THE 1970S YET SINCE OCTOBER THE YIELD ON A 30YEAR GOVERNMENT BOND HAS INCREASED FROM BELOW 6 TO ABOVE 7 IN SHORT MONETARY POLICY IS IN A PERIOD OF DISCONTINUITY THE FED'S DECISION TO RAISE THE FEDERALFUNDS RATE BY 25 BASIS POINTS THREE TIMES IN AS MANY MONTHS REVERSES FIVE YEARS OF DECLINE IN THIS RATE AND THE COINCIDENT DEPARTURES OF FED VICE CHAIRMAN DAVID MULLINS AND GOVERNOR WAYNE ANGELL NOT ONLY ADD TO THE UNCERTAINTY OVER THE DIRECTION OF POLICY BUT ALSO RAISE THE QUESTION OF WHOM PRESIDENT CLINTON WILL APPOINT TO ASSUME THEIR ROLES AS KEY PLAYERS IN THE DESIGN AND IMPLEMENTATION OF MONETARY POLICY MR ANGELL'S DEPARTURE IS ESPECIALLY RELEVANT TO BOTH QUESTIONS EVER SINCE HIS SENATE CONFIRMATION HEARINGS IN 1985 MR ANGELL HAS BEEN THE MOST ARTICULATE AND FERVENT ADVOCATE OF PRICE LEVEL TARGETING ACHIEVING PRICE STABILITY BY STABILIZING THE AVERAGE PRICE OF A BASKET OF TRADED COMMODITIES INCLUDING GOLD SINCE 1985 COMMODITY INDEXES SUCH AS THE COMMODITY RESEARCH BUREAU COMMODITY FUTURES INDEX AND THE PRICE OF GOLD ESSENTIALLY REMAINED WITHIN HIS PROPOSED BAND OF PLUS OR MINUS 10 DURING THIS PERIOD THE YIELD ON A 30YEAR GOVERNMENT BOND WHICH STOOD AT 115 JUST BEFORE MR ANGELL TOOK OFFICE FOLLOWED A JAGGED BUT STEADY DOWNWARD PATH REACHING A LOW OF 593 LAST OCTOBER THEN LAST FALL EVIDENCE BEGAN TO ACCUMULATE THAT MR ANGELL'S INFLUENCE WAS WANING HIS CALLS FOR MONETARY RESTRAINT TO COUNTER THE STEADY RISE IN GOLD AND OTHER COMMODITY PRICES WENT UNHEEDED NONE OF THE TRADITIONAL FUNDAMENTALS HAD CHANGED BUT DOUBTS IN THE POLITICAL DOMAIN HAD ARISEN ABOUT THE DIRECTION POLICY WOULD TAKE IN A POSTANGELL FED AND INTEREST RATES BEGAN TO RISE NOW MARKET PARTICIPANTS ARE GRAPPLING WITH ASSESSING FED CHAIRMAN ALAN GREENSPAN'S INTENTIONS AND POWER LONGTERM INTEREST RATES ROSE SHARPLY WHEN HE ANNOUNCED THE FIRST INCREASE IN THE FEDERALFUNDS RATE BUT THEN BEGAN TO DECLINE WHEN DURING CONGRESSIONAL TESTIMONY HE POINTED TO THE RISING PRICE OF GOLD IN EXPLAINING THE NEED FOR A PREEMPTIVE STRIKE AGAINST INFLATION PRICELEVEL TARGETING IT SEEMED WAS STILL CENTRAL TO THE FED'S POLICY THEN PRESIDENT CLINTON SUMMONED THE FED CHAIRMAN TO THE WHITE HOUSE FOR AN INFORMAL TALK JUST DAYS BEFORE THE MARCH MEETING OF THE FEDERAL OPEN MARKET COMMITTEE WHICH VOTES ON CHANGES IN MONETARY POLICY THIS ACTION SUGGESTED THE WHITE HOUSE MIGHT PUT SHORTTERM POLITICAL GAINS AHEAD OF LONGTERM PRICE STABILITY AND HENCE UNDERCUT MR GREENSPAN'S POWER TO EXECUTE HIS ANTIINFLATIONARY POLICIES WITH THIS SHIFT IN ASSESSMENT IN THE POLITICAL DOMAIN A WEEK'S DECLINE IN INTEREST RATES WAS REVERSED IN A SINGLE DAY MONDAY'S RATE HIKE ON THE OTHER HAND WAS INTERPRETED BY SOME AS A SHOW OF STRENGTH ON MR GREENSPAN'S PART SINCE IT WAS ANNOUNCED BETWEEN MEETINGS OF THE OPEN MARKET COMMITTEE MR CLINTON AND MEMBERS OF HIS ADMINISTRATION LIKE TREASURY SECRETARY LLOYD BENTSEN GREETED THE MOVE WITH CAUTIOUS ACCEPTANCE MR CLINTON'S APPOINTMENTS TO FILL THE TWO OPEN SEATS ON THE FED WILL ALSO DIRECTLY AFFECT INVESTORS' TRUST IN THE FED'S PROMISE TO MAINTAIN PRICE STABILITY IF SPECULATION ARISES THAT THE PRESIDENT WILL APPOINT PEOPLE WHO BELIEVE THAT FED POLICY SHOULD SHIFT TOWARD PROMOTING ECONOMIC GROWTH AND DEEMPHASIZE PRICE LEVEL TARGETING INVESTORS WILL HAVE ADDITIONAL REASONS TO DISTRUST THE PROMISE OF PRICE STABILITY SUCH AN INCREASE IN INFLATIONARY EXPECTATIONS WOULD PRODUCE YET HIGHER INTEREST RATES WELL BEFORE FUNDAMENTAL INDICATORS ARE ABLE TO REFLECT ANY CHANGE IN POLICY TO BRING INTEREST RATES DOWN REQUIRES RESTORING TRUST IN THE PROMISE OF THE FED TO MAINTAIN PRICELEVEL STABILITY INCREASING DOUBTS ABOUT THE FED'S COMMITMENT TO THIS PROMISE AND ITS ABILITY TO EXECUTE SUCH A POLICY ARE GROUNDED IN BOTH THE DRIFT IN POLICY AWAY FROM PRICELEVEL TARGETING AND THE DECLINE IN THE POWER OF THOSE KEY PLAYERS THAT ARE CREDITED WITH CREATING TODAY'S ENVIRONMENT OF LOW INFLATION BUILDING TRUST REQUIRES FULFILLING EXPLICIT PROMISES FOR THE FED THAT MEANS AN EXPLICIT PROMISE TO STABILIZE PRICES AND AN ANNOUNCEMENT OF THE EXPLICIT OBSERVABLE AND MEASURABLE CRITERIA BY WHICH IT IS WILLING TO BE HELD ACCOUNTABLE PRICELEVEL TARGETING WHETHER BASED ON THE PRICE OF GOLD OR ON A BASKET OF COMMODITIES IS JUST SUCH A PROMISE THE PROMISE IS UNAMBIGUOUS AND THE FED'S FULFILLMENT CAN BE OBSERVED EACH AND EVERY DAY SUCH AN ACTION WOULD ASSERT A NEW SET OF FUNDAMENTALS BY WHICH THE FED IS WILLING AND ABLE TO BE HELD ACCOUNTABLE INTEREST RATES WOULD NO LONGER BY SWAYED BY FEARS AND SHIFTING ASSESSMENTS IN THE POLITICAL DOMAIN BUT WOULD BE GROUNDED IN THE RECURRENT OBSERVATION OF A STABLE PRICE OF GOLD OR BASKET OF COMMODITIES PEOPLE WOULD ONCE AGAIN HAVE REASON TO TRUST THE FED TO MAINTAIN THE BUYING POWER OF THE DOLLARS THEY HAD LENT AND WOULD NOT BE REPAID FOR FIVE 10 OR EVEN 30 YEARS INTEREST RATES WOULD STABILIZE AND THEN RESUME THEIR 10YEAR DECLINE THE ALTERNATIVE IS CONTINUED VOLATILITY AND FURTHER INCREASES IN INTEREST RATES MARKET PARTICIPANTS HAVE SHOWN THEY ARE NOT WILLING TO GIVE THE FED THE BENEFIT OF THE DOUBT ABSENT A POLICY THAT CAN DELIVER ON THE PROMISE OF PRICE STABILITY MONETARY POLICY WILL REMAIN IN PLAY MR KADLEC IS A MANAGING DIRECTOR AT J& W SELIGMAN & CO A NEW YORK INVESTMENT MANAGER 9404200095 940420 SEC TO REQUIRE MORE WRAP ACCOUNT DATA BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION VOTED TO REQUIRE THE SPONSORS OF WRAP ACCOUNTS TO GIVE INVESTORS MOREDETAILED INFORMATION ABOUT THEIR COSTS SERVICES AND PERFORMANCE THE SEC REQUIRED THE DELIVERY OF DETAILED DESCRIPTIVE BROCHURES ON WRAP ACCOUNTS BY OCT 1 WRAP ACCOUNTS WHICH HAVE ATTRACTED BILLIONS OF INVESTOR DOLLARS ARE INVESTMENT PROGRAMS SPONSORED BY BROKERAGE FIRMS THAT WRAP TOGETHER MONEY MANAGEMENT FINANCIAL PLANNING AND BROKERAGE SERVICES FOR ONE ANNUAL FEE TYPICALLY 3 OF ASSETS ALTHOUGH THE ACCOUNTS ARE INTENDED FOR WELLHEELED AND PRESUMABLY WELLINFORMED INVESTORS THE COMMISSION HAS BEEN CONCERNED THAT INVESTORS AREN'T FULLY AWARE OF HOW THEIR MONEY IS BEING USED OUR GOAL IS TO ENABLE INVESTORS TO MAKE INFORMED DECISIONS ABOUT COMMITTING THEIR ASSETS TO THESE PROGRAMS SAID SEC CHAIRMAN ARTHUR LEVITT IN A BOUT OF REGULATORY SPRING CLEANING THE COMMISSION ALSO APPROVED A PACKAGE OF RULES DESIGNED TO MAKE IT EASIER FOR FOREIGN COMPANIES TO OFFER SECURITIES IN THE US IN A RELATED ACTION THE SEC PROPOSED TRIMMING FINANCIALREPORTING REQUIREMENTS FOR BOTH FOREIGN AND US COMPANIES THE SEC ALSO OPENED A REVIEW OF ITS 40YEAROLD TRADINGPRACTICES RULES THAT PROHIBIT MANIPULATION OF SECURITIES OFFERINGS BY UNDERWRITERS AND ISSUERS MR LEVITT SAID THE COMMISSION WANTS PUBLIC COMMENT ON EVERY ASPECT OF THE RULES INCLUDING EXPANDING THE RULES RESTRICTING THEM OR ELIMINATING THEM COMMENTS WILL BE COLLECTED UNTIL AUG 12 FOR FOREIGN COMPANIES THE SEC TOOK SEVERAL STEPS TO EASE THEIR ACCESS TO US MARKETS BY SIMPLIFYING REGISTRATION AND REPORTING REQUIREMENTS WITH COMPETITION AMONG SECURITIES MARKETS INTENSIFYING MR LEVITT SAID THE SEC WILL HAVE TO COUNT AMONG ITS JOBS TO SEE TO IT THAT OUR MARKETS DO NOT SUFFER COMPETITIVELY THE COMMISSION RELAXED SEVERAL ACCOUNTING RULES FOR FOREIGN ISSUERS AND VOTED TO ACCEPT INTERNATIONAL ACCOUNTING STANDARDS FOR FOREIGN COMPANIES' CASHFLOW STATEMENTS THE SEC ALSO VOTED TO ALLOW FOREIGN COMPANIES TO USE THE SHELFREGISTRATION PROCESS WHICH ALLOWS A COMPANY TO USE ONE REGISTRATION STATEMENT TO OFFER STOCK DEBT AND OTHER SECURITIES WELL IN ADVANCE OF THE TIME IT EXPECTS TO ISSUE THE SECURITIES AND WITHOUT SPECIFYING THE AMOUNT OF EACH CLASS OF SECURITIES TO BE OFFERED THE COMMISSION ALSO APPROVED FOREIGN COMPANIES' USAGE OF THE SAME SHORTFORM PROSPECTUSES NOW USED BY SIMILARLY SIZED US COMPANIES THE SEC PROPOSED RULES THAT WOULD ALLOW A FOREIGN COMPANY TO PRESENT ITS FINANCIAL STATEMENTS IN THE CURRENCY OF ITS CHOICE AND WOULD EASE REPORTING REQUIREMENTS FOR FOREIGN COMPANIES IN CERTAIN CIRCUMSTANCES INCLUDING OPERATING IN HYPERINFLATIONARY ECONOMIES AND ACCOUNTING FOR BUSINESS COMBINATIONS THE COMMISSION ALSO PROPOSED RULES EASING THE REPORTING REQUIREMENTS FOR BOTH US AND FOREIGN COMPANIES WITH SIGNIFICANT HOLDINGS IN FOREIGN BUSINESSES THE SEC WILL COLLECT COMMENTS ON THESE PROPOSALS FOR 90 DAYS 9404200094 940420 WHAT'S NEWS WORLDWIDE AN ELECTION IMPASSE ENDED IN SOUTH AFRICA AS ZULUS AGREED TO TAKE PART JUST A WEEK BEFORE THE COUNTRY'S FIRST MULTIRACIAL VOTE ZULU LEADER BUTHELEZI DROPPED HIS BOYCOTT ENSURING THAT THE HISTORIC BALLOT WILL BE HELD AS SCHEDULED IN RETURN BUTHELEZI OBTAINED CONSTITUTIONAL RECOGNITION OF A KINGDOM OF KWAZULU AND A PROMISE THAT OUTSTANDING CONSTITUTIONAL DIFFERENCES WILL BE SETTLED LATER THROUGH INTERNATIONAL MEDIATION PRESIDENT DE KLERK AND AFRICAN NATIONAL CONGRESS LEADER MANDELA HAILED THE ACCORD BUTHELEZI'S REVERSAL SHOULD LEAD TO A DECREASE IN VIOLENCE THOUGH A STATE OF EMERGENCY REMAINS IN EFFECT IN HIS STRIFETORN POWER BASE OF KWAZULUNATAL SERBS SHELLED A HOSPITAL AND UN BUILDINGS IN GORAZDE THEN SIGNED A TRUCE THE UN LOST CONTACT WITH ITS OBSERVERS IN THE TOWN WHEN THEIR BUILDING WAS HIT ARTILLERY FIRE ALSO STRUCK THE MAIN HOSPITAL REFUGEE CENTERS AND A FOOD WAREHOUSE ABOUT 200 SHELLS FELL IN THE MORNING AND A HAM RADIO OPERATOR SAID 26 PEOPLE DIED IN 24 HOURS LATER THE SERBS SIGNED A TRUCE NEAR SARAJEVO SERBS SEIZED 18 ANTIAIRCRAFT GUNS FROM PEACEKEEPERS BUT LATER GAVE BACK 13 YELTSIN TOLD THE SERBS TO HALT THE ATTACKS THE US WILL ASK ITS NATO ALLIES WITHIN A FEW DAYS TO THREATEN AIR STRIKES AGAINST BOSNIAN SERBS IF THEY DON'T HALT THEIR ATTACKS ON MUSLIM SAFE AREAS THE JUSTICES SAID PEOPLE MAY NOT BE EXCLUDED FROM JURIES BASED ON THEIR SEX THE SUPREME COURT'S 63 DECISION WAS AN EXTENSION OF PREVIOUS RULINGS BANNING JUROR EXCLUSION BASED ON RACE IN HIS OPINION FOR THE MAJORITY JUSTICE BLACKMUN SAID THE CONSTITUTIONAL GUARANTEE OF EQUAL PROTECTION UNDER THE LAW SHOULD BE INTERPRETED TO COVER SEX AS WELL AS RACE IN JURY SELECTION AFFECTED BY THE DECISION ARE PREEMPTORY CHALLENGES WHICH ALLOW ATTORNEYS TO EXCLUDE POTENTIAL JURORS WITHOUT OFFERING A JUSTIFICATION THOUGH WOMEN'S RIGHTS ADVOCATES PRAISED THE RULING IT WILL BE HARDER FOR PROSECUTORS IN RAPE CASES TO SEEK MOSTLY FEMALE JURIES A COMMON PRACTICE A LOS ANGELES JURY AWARDED RODNEY KING 38 MILLION IN COMPENSATORY DAMAGES FROM THE CITY IN HIS CIVIL LAWSUIT STEMMING FROM A 1991 POLICE BEATING THE AWARD WAS SIGNIFICANTLY BELOW THE 15 MILLION SOUGHT BY KING'S LAWYERS BUT WELL ABOVE THE 800000 THE CITY SAID WAS FAIR THE VERDICT CAME ON THE FOURTH DAY OF DELIBERATIONS THE SENATE APPROVED ADM KELSO'S RETIREMENT AT HIS CURRENT RANK DESPITE A SHOW OF SOLIDARITY BY ALL SEVEN WOMEN SENATORS WHO OPPOSED THE NAVY CHIEF BECAUSE OF THE TAILHOOK SEX SCANDAL THE 5443 VOTE ALLOWS KELSO TO RETIRE AS A FOURSTAR ADMIRAL A BREAST CANCER STUDY CONFIRMED THAT WOMEN WHO UNDERGO A BREASTSAVING TREATMENT HAVE SURVIVAL RATES AT LEAST AS GOOD AS THOSE WHO HAVE AN ENTIRE BREAST REMOVED FOR WOMEN WHO HAVE HAD THE PROCEDURE THE STUDY PROVIDES REASSURANCE AFTER DISCLOSURES OF FRAUDULENT DATA IN A PRIOR STUDY SUPPORTING ITS USE ISRAELI SECURITY FORCES ROUNDED UP MORE THAN 400 ARABS AND SEIZED AUTOMATIC WEAPONS IN A PREDAWN SWEEP AGAINST AN ISLAMIC FUNDAMENTALIST GROUP HAMAS WHICH HAS CLAIMED RESPONSIBILITY FOR RECENT ATTACKS ON COMMUTER BUSES RWANDAN ARMY TROOPS SHELLED KIGALI'S NATIONAL STADIUM WHICH WAS PACKED WITH THOUSANDS OF REFUGEES KILLING AT LEAST NINE PEOPLE AND WOUNDING OVER 170 OTHERS UN OFFICIALS SAID THE SECURITY COUNCIL WAS LIKELY TO DECIDE TO WITHDRAW ALL PEACEKEEPERS A FRENCH JURY FOUND PAUL TOUVIER GUILTY OF COMPLICITY IN CRIMES AGAINST HUMANITY FOR ORDERING THE EXECUTION OF SEVEN JEWS DURING WORLD WAR II HE WAS SENTENCED TO LIFE IN PRISON TOUVIER 79 A FORMER VICHY MILITIA CHIEF WAS THE FIRST FRENCH CITIZEN TO BE TRIED FOR CRIMES AGAINST HUMANITY BIG MANUFACTURERS ARE REDUCING THEIR TOXIC EMISSIONS BUT THE COMPANIES ARE GENERATING MORE WASTE OVERALL THE EPA REPORTED THE AGENCY SAID TOXIC INDUSTRIAL EMISSIONS FELL 6 IN 1992 FROM 1991 9404200092 940420 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN INVESTORS FEEL THE PINCH FROM THE NEW TAX LAW TREASURY SECRETARY BENTSEN INSISTED AGAIN LAST WEEK THAT THE NEW TAX LAW AFFECTS ONLY A SMALL FRACTION OF INDIVIDUAL TAXPAYERS BUT THAT FRACTION INCLUDES LARGE NUMBERS OF INDIVIDUAL INVESTORS JUDGING FROM A RECENT SURVEY FOR DISCOUNT BROKER QUICK & REILLY IN NEW YORK THE SURVEY OF 507 INVESTORS BY WIRTHLIN GROUP IN MCLEAN VA FOUND THAT 48 SAID THEY PAID MORE TAXES AS A RESULT OF THE 1993 TAX ACT MANY AREN'T TAKING THE HIT LYING DOWN MORE PEOPLE NOW ARE SCURRYING FOR SHELTER INTO SUCH HAVENS AS TAXFREE BONDS BOND FUNDS AND UNIT INVESTMENT TRUSTS OR TAXDEFERRED INVESTMENTS SUCH AS ANNUITIES SAYS THOMAS C QUICK QUICK & REILLY'S PRESIDENT ABOUT ONE OF THREE PEOPLE SURVEYED SAID THEY MADE TAXREDUCING INVESTMENTS IN THIS YEAR'S FIRST QUARTER THAT WAS UP FROM ONE OUT OF FOUR A YEAR AGO ONLY 7 SAID THEY HAD TO SELL INVESTMENTS TO PAY THEIR TAX BILL OF THOSE WHO DID SELL ABOUT TWOTHIRDS SOLD STOCKS FEWER TAX RETURNS TRICKLE IN TO THE IRS SO FAR THIS YEAR THE IRS HAD RECEIVED 681 MILLION RETURNS AS OF APRIL 8 DOWN SLIGHTLY FROM A YEAR AGO AND DOWN 9 FROM ABOUT TWO YEARS AGO WHY MAYBE MORE PEOPLE WAITED UNTIL APRIL 15 TO FILE BECAUSE THEY OWED MORE UNDER THE NEW TAX LAW MAYBE MORE PEOPLE FILED FOR EXTENSIONS OR WON'T FILE AT ALL NOBODY KNOWS YET BUT IF THE TREND CONTINUES IT WOULD BE A MAJOR CONCERN TO THE TREASURY SAYS GARY J GASPER A FORMER TREASURY TAX ADVISER AND NOW A LAWYER AT KECK MAHIN & CATE IN WASHINGTON THE NUMBERS BEAR CLOSE WATCHING BUT IT'S STILL TOO EARLY TO TELL SAYS LAWRENCE B GIBBS A FORMER IRS CHIEF WHO IS JOINING THE MILLER & CHEVALIER LAW FIRM IN WASHINGTON IRS OFFICIALS SAY ONE REASON FOR THE DROP IS THEY FOUND MANY PEOPLE WHO DIDN'T NEED TO FILE AND NOTIFIED THEM ALSO LOWER INTEREST RATES MAY MEAN FEWER PEOPLE HAVE ENOUGH INCOME TO FILE SAYS THE IRS IT ALSO CITES 1992 WITHHOLDINGRATE CUTS BY THENPRESIDENT BUSH MORE PEOPLE EXPECTING REFUNDS WERE STUNNED TO DISCOVER THEY OWED TAXES AND MAY NOT HAVE FILED CRITICISM GROWS OF TAXREFUND ANTICIPATION LOANS AT ASTRONOMICAL RATES ABOUT 95 MILLION PEOPLE WHO FILED THEIR RETURNS ELECTRONICALLY LAST YEAR PAID A LENDER EXTRA TO GET THEIR MONEY WITHIN A FEW DAYS RATHER THAN WAITING FOR AN IRS REFUND WEEKS LATER THE AVERAGE BORROWER IS 34 WITH HOUSEHOLD INCOME OF 25000 SAYS GARY PERKINSON OF THE ELECTRONIC FILING COALITION A TRADE GROUP IN WASHINGTON BUT CRITICS SAY THAT BORROWERS TYPICALLY LOWINCOME WORKERS WIND UP PAYING HIGH INTEREST RATES FOR WHAT AMOUNTS TO A SHORTTERM LOAN BORROWERS PAY STAGGERING RATES THAT WOULD MAKE A LOAN SHARK BLUSH SAYS REP JOSEPH KENNEDY AT A HEARING LAST WEEK HE SAID SOME LENDERS STICK BORROWERS WITH RATES OVER 100 REP KENNEDY CHAIRMAN OF THE SUBCOMMITTEE ON CONSUMER CREDIT AND INSURANCE FAVORS REQUIRING LENDERS TO DISCLOSE RATES AT THE TIME CUSTOMERS APPLY BUT MR PERKINSON SAYS BORROWERS LIKE THE PROGRAM FOR ITS CONVENIENCE SECURITY AND TIMELINESS HIRING PRIVATE TAX COLLECTORS TO HELP THE IRS AS PROPOSED BY THE WHITE HOUSE BUDGET OFFICE IS A TERRIBLE IDEA SAYS ROBERT M TOBIAS PRESIDENT OF THE NATIONAL TREASURY EMPLOYEES UNION HE AND OTHERS FEAR POSSIBLE INVASION OF TAXPAYER PRIVACY IRS OFFICIALS SHARE THEIR CONCERN MANY PEOPLE WHO HAVEN'T FILED RETURNS IN RECENT YEARS ARE ENTITLED TO REFUNDS THE IRS SAYS BUT THOSE DUE A REFUND FOR WITHHOLDING OR ESTIMATED TAXES GENERALLY MUST CLAIM IT WITHIN THREE YEARS OR LOSE IT THANKS DAVE THE TREASURY HISTORICAL ASSOCIATION A NONPROFIT GROUP SAYS IT SOLD MORE THAN 13100 OF 1993 CHRISTMASTREE ORNAMENTS DECORATED WITH A 1913 INCOMETAX FORM THUS RAISING ABOUT 50000 THE BULK OF THE SALES CAME AFTER HUMORIST DAVE BARRY POKED FUN AT THE ORNAMENTS LOBBYISTS LOSE ROUND ONE OF THEIR BID TO OVERTURN PART OF THE 1993 TAX LAW A US DISTRICT JUDGE IN WASHINGTON HAS REJECTED A LAWSUIT BY 11 NONPROFIT TRADE GROUPS AND PROFESSIONAL SOCIETIES CHALLENGING A SECTION OF THE NEW TAX LAW LOBBYISTS ARGUED THAT A PROVISION ELIMINATING DEDUCTIBILITY OF MOST LOBBYING EXPENSES EFFECTIVE THIS YEAR VIOLATED THEIR RIGHTS OF FREE SPEECH AND PETITION BUT SOME ARE ENCOURAGED BY PART OF JUDGE STANLEY SPORKIN'S DECISION THE JUDGE DISMISSED THE CASE ON PROCEDURAL GROUNDS BUT SAID HE DOES NOT NECESSARILY AGREE WITH THE WAY CONGRESS WROTE THE LAW OR THE IRS IMPLEMENTED IT LOBBYISTS MAY WELL HAVE MADE AN EFFECTIVE CASE THAT THE ACT AND THE WAY THE IRS INTENDS TO ADMINISTER IT PRODUCE UNFAIR RESULTS LOBBYISTS PLAN A NEW LAWSUIT SAYS ROBERT BOEGE OF THE AMERICAN SOCIETY OF ASSOCIATION EXECUTIVES THIS IS ONE BATTLE DOWN BUT THE WAR STILL GOES ON PERHAPS BUT DONALD ALEXANDER A WASHINGTON LAWYER AND FORMER IRS CHIEF PREDICTS LOBBYISTS WILL LOSE THE WAR TOO MR ALEXANDER SAYS THE LAW MAY BE FOOLISH BUT NOT UNCONSTITUTIONAL BRIEFS GROWING WORKLOAD THE IRS FACED A BACKLOG OF 589 REGULATIONWRITING PROJECTS AS OF FEB 28 UP FROM 576 A MONTH EARLIER WOOING THE FOURTH ESTATE BENTSEN DELIGHTED REPORTERS LAST WEEK BY HANDING OUT FORMS FOR FILING AN EXTENSION SHIRLEY PETERSON A WASHINGTON LAWYER AND FORMER IRS COMMISSIONER OFFERS A SUGGESTION ON HOW TO ENCOURAGE MORE PEOPLE TO FILE TAX RETURNS MAKE THE TAX SYSTEM MUCH SIMPLER AND EASIER TO COMPLY WITH 9404200091 940413 THE RADIATION SCARE'S REAL FALLOUT BY MAX BOOT IN NOVEMBER THE ALBUQUERQUE TRIBUNE PUBLISHED THE PLUTONIUM EXPERIMENT A SERIES OF STORIES BY REPORTER EILEEN WELSOME ABOUT RADIATION TESTS CONDUCTED BY THE US GOVERNMENT ON HUMAN SUBJECTS IN 194546 MS WELSOME'S REVELATIONS HAVE BEEN SPLASHED ACROSS FRONT PAGES FROM COAST TO COAST AND YESTERDAY WERE REWARDED WITH A PULITZER PRIZE UNFORTUNATELY THE HYPE OVER THE RADIATION EXPERIMENTS FAR EXCEEDS THEIR NEWS VALUE THERE IS NOTHING PARTICULARLY NEW HERE SOME OF THE EXPERIMENTS HAVE BEEN PUBLIC KNOWLEDGE AT LEAST SINCE 1971 WHEN THE WASHINGTON POST REVEALED THAT PATIENTS HAD BEEN IRRADIATED AT THE UNIVERSITY OF CINCINNATI THE EXPERIMENT THAT MS WELSOME FOCUSED ON WAS FIRST REPORTED IN 1976 IN A NEWSLETTER CALLED SCIENCE TRENDS ANTINUCLEAR ACTIVISTS SOME ASSOCIATED WITH UNIONS REPRESENTING NUCLEARPLANT WORKERS PICKED UP THE TRAIL AND TRIED TO GET THE PRESS AND POLITICIANS INTERESTED IN OTHER EXPERIMENTS THIRTYONE TESTS WERE DOCUMENTED IN A 1986 REPORT ISSUED BY REP ED MARKEY D MASS AMERICAN NUCLEAR GUINEA PIGS THREE DECADES OF RADIATION EXPERIMENTS ON US CITIZENS DESPITE THE OVERWROUGHT TITLE THE PRESS PAID LITTLE ATTENTION THE STORY WAS BURIED DEEP IN THE NEW YORK TIMES THE MOST TROUBLING EXPERIMENT REPORTED BY REP MARKEY'S STAFF AND SUBSEQUENTLY BY MS WELSOME INVOLVED AN ATTEMPT IN 194546 BY THE MILITARY TO FIGURE OUT HOW MUCH PLUTONIUM PEOPLE COULD SAFELY BE EXPOSED TO THIS WAS NOT SOME SADISTIC DESIRE BY THE MILITARYINDUSTRIAL COMPLEX IT WAS OF VITAL IMPORTANCE BECAUSE THOUSANDS OF WORKERS WERE TOILING ON THE CRASH US ATOMIC PROGRAM ACCORDING TO PATRICIA DURBIN A BIOPHYSICIST WHO WORKED WITH THE SCIENTISTS WHO CONDUCTED THE TESTS THE ALTERNATIVE WAS TO UTILIZE THE ENTIRE WORK FORCE HANDLING PLUTONIUM HUNDREDS OF YOUNG AND VIGOROUS PEOPLE IN A GIANT EXPERIMENT TO SEE WHETHER THE ANIMAL DATA WERE PROVIDING THE RIGHT INFORMATION ABOUT HOW MUCH PLUTONIUM THE BODY COULD TAKE TRACE ELEMENTS OF PLUTONIUM239 A RADIOACTIVE ISOTOPE WERE ADMINISTERED TO 18 PEOPLE ALL OF WHOM HAD BEEN CERTIFIED BY THEIR PHYSICIANS AS NOT EXPECTED TO LIVE MORE THAN 10 YEARS TWELVE OF THE VOLUNTEERS DIED AS EXPECTED SHORTLY AFTER THE EXPERIMENTS THE REST LIVED FOR YEARS AFTERWARD WITH THE FINAL ONE NOT DYING UNTIL 1991 JOHN RUNDO A BIOPHYSICIST AT THE ARGONNE NATIONAL LABORATORY DID A FOLLOWUP STUDY IN 1973 ON ALL THE VOLUNTEERS BOTH LIVING AND DEAD THE EVIDENCE HE TOLD CONGRESS IN FEBRUARY IS THAT ALL THE PERSONS INJECTED WITH PLUTONIUM DIED OF CAUSES UNRELATED TO THEIR INJECTED RADIOACTIVITY THE MOST TROUBLING ELEMENT OF THE PLUTONIUM TESTS WAS THE LACK OF INFORMED CONSENT GREGG HERKEN A HISTORIAN FROM THE NATIONAL AIR AND SPACE MUSEUM TOLD CONGRESS THAT MOST OF THE VOLUNTEERS WERE INFORMED ONLY THAT THEY WERE TO RECEIVE A RADIOACTIVE SUBSTANCE HAVING CERTAIN PROPERTIES AT THE TIME EVERYTHING RELATED TO THE ATOMICBOMB PROJECT EVEN THE WORD PLUTONIUM WAS STRICTLY CLASSIFIED BUT IT'S DOUBTFUL THAT ANY VOLUNTEERS IN 1945 OR 1946 EVEN IF THEY HAD KNOWN ABOUT THE PLUTONIUM COULD HAVE GIVEN INFORMED CONSENT FOR SUCH EXPERIMENTS AT THE TIME AFTER ALL VERY LITTLE WAS KNOWN ABOUT THE DANGERS OF PLUTONIUM OR ABOUT MANY OTHER TOXIC SUBSTANCES EVEN YEARS LATER SHOE STORES ROUTINELY OFFERED TO XRAY CUSTOMERS' FEET OBLIVIOUS TO RADIATION HAZARDS THE SHOE STORES ASKED FOR CONSENT BUT IT WASN'T INFORMED CONSENT SAYS THOMAS JUKES A RETIRED BIOPHYSICIST AT THE UNIVERSITY OF CALIFORNIA BERKELEY IT WAS THE SAME THING WITH MEDICAL EXPERIMENTS THIS HAS NOW BECOME AN ISSUE BECAUSE OF MS WELSOME'S PULITZERWINNING ARTICLES HER STORIES DIDN'T CONTRIBUTE MUCH NEW INFORMATION ABOUT THE SCOPE OR NATURE OF THE TESTING BUT THEY ADDED A HUMAN INTEREST SPIN SHE MANAGED TO IDENTIFY A NUMBER OF THE PEOPLE INVOLVED IN THE EXPERIMENTS AND INTERVIEWED THEIR RELATIVES AT LENGTH EVEN HER COMPELLING WORK MIGHT HAVE GONE THE WAY OF THE MARKEY REPORT WERE IT NOT FOR ENERGY SECRETARY HAZEL O'LEARY WHO HELD A NEWS CONFERENCE ON DEC 7 TO PUBLICLY ACKNOWLEDGE THE EXISTENCE OF THE PLUTONIUM EXPERIMENTS AND MANY OTHERS HOW DID MRS O'LEARY FIND OUT ABOUT THE TRIBUNE ARTICLES ACCORDING TO AN INTERVIEW SHE GAVE TO THE NEW YORK TIMES THE ARTICLES WERE BROUGHT TO HER ATTENTION BY A TOP AIDE DAN REICHER MR REICHER IS A FORMER LAWYER FOR THE ANTINUCLEAR NATURAL RESOURCES DEFENSE COUNCIL WHILE AT THE NRDC MR REICHER FILED SUIT IN THE 1980S TO STOP THE CONSTRUCTION OF A PLUTONIUM PLANT IN IDAHO THUS THE WELSOME ARTICLES WERE USED TO ADVANCE AN ENVIRONMENTALIST AGENDA THAT TRIES TO SCARE THE PUBLIC ABOUT THE DANGERS OF RADIATION IN ORDER TO SHUT DOWN THE NUCLEAR POWER INDUSTRY THE BATON IN THE RACE TO HYPE THE RADIATION TESTS HAS NOW PASSED FROM ANTINUCLEAR ACTIVISTS AND REPORTERS TO TORT LAWYERS A GROUP OF SAN FRANCISCO LAWYERS INCLUDING THE FABLED KING OF TORTS MELVIN BELLI HAS FILED CLASSACTION SUITS ON BEHALF OF PEOPLE WHO WERE INVOLVED IN EXPERIMENTS AT VANDERBILT UNIVERSITY IN THE 1940S AND THE UNIVERSITY OF CINCINNATI IN THE 1960S OUR CASES CAME TO LIGHT AS A RESULT OF THE DISCLOSURES BY HAZEL O'LEARY AND BY EILEEN WELSOME'S WORK IN ALBUQUERQUE SAYS ROBERT NELSON ONE OF THE LAWYERS WORKING WITH MR BELLI THE CINCINNATI EXPERIMENTS WERE THE SUBJECT OF A CONGRESSIONAL HEARING ON MONDAY WHICH NOT INCIDENTALLY GAVE PLENTY OF FAVORABLE PUBLICITY TO MR BELLI'S CLIENTS THE LAWYERS CHARGE THAT EUGENE SAENGER A RADIOLOGIST AT THE UNIVERSITY OF CINCINNATI KNOWINGLY EXPOSED PATIENTS TO LETHAL DOSES OF RADIATION IN ORDER TO TEST THEIR REACTIONS FOR THE PENTAGON WHAT ACTUALLY HAPPENED IS THAT DR SAENGER WAS TESTING THE USE OF RADIATION THERAPY INSTEAD OF CHEMOTHERAPY FOR PATIENTS WITH ADVANCED CANCERS DR SAENGER ALSO RECEIVED DEFENSE DEPARTMENT FUNDING TO REPORT ON THE EFFECTS OF RADIATION BUT HE STRESSED TO CONGRESS TREATMENT WAS GIVEN ONLY IF BENEFIT TO THE PATIENT WAS ANTICIPATED BETWEEN 1960 AND 1971 HE IRRADIATED 88 TERMINALLY ILL VOLUNTEERS IN AN EXPERIMENT REVIEWED AND APPROVED BY OTHER SCIENTISTS ALL OF THE VOLUNTEERS HAD THE RISKS EXPLAINED TO THEM AND IN THE LATER YEARS SIGNED CONSENT FORMS SAYING THEY UNDERSTOOD THAT WHOLE OR PARTIAL BODY IRRADIATION WOULD BE PERFORMED ON THEM NOW MR BELLI'S CLIENTS SAY THEY DON'T REMEMBER IF THEY OR THEIR RELATIVES SIGNED SUCH FORMS TWENTY OF THE PATIENTS LIVED LONGER THAN A YEAR ONE LIVED NINE YEARS AND ONE PATIENT DONNA WHITE CHRISTY WHO HAS A TYPE OF BONE MARROW CANCER KNOWN AS EWINGS SARCOMA REMAINS ALIVE TODAY WHAT'S EVEN MORE AMAZING THAN HER LONGEVITY IS THAT MS CHRISTY IS NOW MR BELLI'S PLAINTIFF IN THE SUIT AGAINST THE UNIVERSITY AS R JOSEPH PARKER DR SAENGER'S ATTORNEY NOTES BUT FOR THAT TREATMENT THAT WOMAN WOULD BE DEAD TODAY THE CHANCES OF SURVIVAL WITH EWING'S SARCOMA ARE 10 JUST BECAUSE THE BELLI LAWSUITS ARE BASELESS DOESN'T MEAN THEY'LL GET THROWN OUT OF COURT NOR DOES IT MEAN THAT OTHERS WON'T BE FILED PLENTY OF LAWYERS ARE SNIFFING AROUND THE RADIATION EXPERIMENTS IN SEARCH OF LIKELY PLAINTIFFS IT DOES PRESENT ANOTHER PRACTICE OPPORTUNITY FOR THE EVERGROWING NUMBER OF LAWYERS IN WASHINGTON TIMOTHY MAY THE MANAGING PARTNER OF THE POWERHOUSE FIRM PATTON BOGGS & BLOW RECENTLY TOLD LEGAL TIMES THE HISTORY OF OTHER RADIATION LAWSUITS PROVIDES A PRETTY GOOD CLUE ABOUT WHAT'LL HAPPEN IN THE 1980S THOUSANDS OF ALLEGED RADIATION VICTIMS INCLUDING VETERANS NUCLEAR PLANT WORKERS AND THOSE WHO LIVED NEAR ATOMIC FACILITIES OR TESTING GROUNDS FILED SUITS AGAINST THE GOVERNMENT AND VARIOUS CONTRACTORS A 1950 SUPREME COURT RULING THAT HELD THE GOVERNMENT IS IMMUNE FROM SUITS BROUGHT BY SOLDIERS EXPOSED TO ATOMIC RADIATION SHOULD HAVE QUASHED MANY OF THE ACTIONS BUT INVENTIVE LAWYERS FOUND A WAY AROUND THAT THEY SUED THE CONTRACTORS TRYING TO STEM THE FLOW OF LITIGATION CONGRESS IN 1984 LIMITED DEFENSE CONTRACTORS' LIABILITY THEN IN 1988 LAWMAKERS PASSED A RADIATION VICTIMS COMPENSATION ACT OFFERING MONEY TO SURVIVORS IN RETURN FOR A PLEDGE NOT TO SUE BUT LIKE THE ENERGIZER BUNNY MANY OF THE SUITS KEEP GOING AND GOING AND GOING THEY HAVE EVEN SPAWNED A LITTER OF LAWYERS LIKE FORMER INTERIOR SECRETARY STEWART UDALL WHO DO ALMOST NOTHING ELSE SO LOOK FOR LONG YEARS OF COSTLY LAWSUITS OVER RADIATION EXPERIMENTS WHILE THAT'S GOING ON ANOTHER SET OF LAWYERS WILL BE LOBBYING BACK AND FORTH IN WASHINGTON OVER WHAT RESPONSE IF ANY THE FEDERAL GOVERNMENT SHOULD MAKE AS USUAL IN CASES OF THIS KIND IT'LL BE THE ATTORNEYS NOT THE ALLEGED VICTIMS WHO'LL RECEIVE THE MOST COMPENSATION THAT'S THE FALLOUT FROM THE RADIATION EXPERIMENTS STORY UNCOVERED BY EILEEN WELSOME MR BOOT IS AN ASSISTANT FEATURES EDITOR ON THE JOURNAL EDITORIAL PAGE SEE RELATED LETTER LETTERS TO THE EDITOR HUMAN GUINEA PIGS DESERVE JUSTICE WSJ APRIL 20 1994 9404130072 YY94 MM04 9404200090 940420 TEXAS JOURNAL LETTERS TO THE EDITOR MISSED PITCH I GREATLY ENJOYED YOUR APRIL 6 ARTICLE ON NOLAN RYAN'S COMMERCIAL ENDORSEMENTS NOLAN INC STARTS A NEW SEASON UNFORTUNATELY THERE WAS ONE ENDORSEMENT MISSING FROM THE LIST AND IT'S ONE WE THINK IS IMPORTANT BOLLINGER FITNESS OF IRVING MANUFACTURES THE NOLAN RYAN SIGNATURE LINE OF MEN'S FITNESS ACCESSORIES WHICH WERE FORMALLY INTRODUCED IN FEBRUARY NOLAN ATTRIBUTES MUCH OF HIS SUCCESS AND THE LENGTH OF HIS CARRER TO HIS LIFELONG COMMITMENT TO STAYING FIT THAT'S WHY HE'S SUCH A LOGICAL AND TERRIFIC REPRESENTATIVE FOR BOLLINGER PRODUCTS 9404200089 940420 TECHNOLOGY AND HEALTH RESEARCHERS FAIL TO FIND BREAST CANCER DDT LINK OAKLAND CALIF IN A SURPRISING FINDING RESEARCHERS FAILED TO DOCUMENT A LONGSUSPECTED LINK BETWEEN BREAST CANCER AND EXPOSURE TO THE PESTICIDE DDT THE RESEARCH BY NANCY KRIEGER AND OTHERS AT KAISER FOUNDATION RESEARCH INSTITUTE CONTRADICTS A STUDY BY MARY WOLFF OF MOUNT SINAI SCHOOL OF MEDICINE IN NEW YORK WHICH FOUND AS MUCH AS A FOURFOLD INCREASE IN BREAST CANCER AMONG WOMEN WITH HIGH LEVELS OF DDT THE KAISER STUDY INVOLVED 300 WOMEN OBSERVED FOR A MEAN 14 YEARS AND MEASURED THE PESTICIDE DDT WHICH WAS BANNED IN THE U S IN 1972 AND PCBS WHICH ARE CHEMICALS USED IN ELECTRICAL INSULATION BOTH CHEMICALS PERSIST IN THE ENVIRONMENT AND CAN BECOME LODGED IN BREAST TISSUE WHERE THEY MIMIC THE TUMORPROMOTING HORMONE ESTROGEN THE KAISER STUDY TESTED FOR CHEMICALS IN BLOOD TESTS DRAWN FROM 57000 WOMEN IN THE KAISER PERMANENTE HEALTH PLAN FROM 1964 THROUGH 1969 WELL BEFORE DDT WAS BANNED FROM THIS HUGE POOL THE RESEARCHERS MATCHED 150 WOMEN WHO DEVELOPED BREAST CANCER THROUGH 1990 AND COMPARED THEM AGAINST 150 HEALTHY CONTROLS ALL EVENLY DIVIDED BETWEEN WHITES BLACKS AND ASIANS DR KRIEGER FOUND NO STATISTICALLY SIGNIFICANT LINKS BETWEEN EITHER CHEMICAL AND BREAST CANCER HOWEVER FOR BLACKS AND WHITES THERE WAS SLIGHTLY INCREASED CANCER RISK WITH DDT THOUGH THE TREND DIDN'T REACH STATISTICAL SIGNIFICANCE DR KRIEGER SAID SHE WAS FAIRLY SURPRISED BY THE RESULTS BUT STRESSED HER STUDY HASN'T DEFINITIVELY DISPROVED THE HYPOTHESIS LINKING PESTICIDES AND CANCER THE STUDY APPEARS IN THE JOURNAL OF THE NATIONAL CANCER INSTITUTE 9404200088 940420 INSIDE TRACK DIGITAL EQUIPMENT OFFICERS SOLD SHARES WELL BEFORE NEWS OF BIG QUARTERLY LOSS BY WARREN GETLER AND JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL TWO DIGITAL EQUIPMENT CORP INSIDERS SOLD CHUNKS OF THEIR HOLDINGS THIS YEAR WELL BEFORE DIGITAL'S DISCLOSURE FRIDAY OF A LARGE QUARTERLY LOSS WHICH HAS SINCE DRIVEN THE STOCK DOWN SHARPLY THE INSIDERS BOTH VICE PRESIDENTS SOLD THEIR HOLDINGS AT AN AVERAGE 31 A SHARE BETWEEN MIDFEBRUARY AND LATE MARCH RECENT FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW SINCE FRIDAY'S DISCLOSURE OF A FISCAL THIRDQUARTER LOSS THAT WAS MORE THAN TRIPLE ANALYSTS' EXPECTATIONS DIGITAL'S SHARES HAVE PLUNGED 26 TO AROUND 21 A SHARE IN TRADING ON THE NEW YORK STOCK EXCHANGE THE MAYNARD MASS COMPUTER COMPANY REPORTED THAT THE LOSS FOR THE QUARTER ENDED APRIL 2 WIDENED TO 1833 MILLION FROM 301 MILLION DIGITAL EXECUTIVES ACKNOWLEDGING SURPRISE AT THE SIZE OF THE QUARTERLY LOSS PROMISED SIGNIFICANT ADDITIONAL RESTRUCTURING MOVES THAT PROMISE AFTER A RECENT SLOWDOWN IN COSTCUTTING APPEARED TO HAVE PROVIDED SOME SUPPORT TO THE BEATENDOWN STOCK YESTERDAY AFTER IT SHOWED FURTHER WEAKNESS MONDAY DIGITAL HASN'T PREDICTED WHEN IT WILL RETURN TO PROFITABILITY SEC DATA INDICATE THAT VICE PRESIDENT AND TREASURER ILENE JACOBS SOLD 1625 SHARES OR 68 OF HER HOLDINGS AT AN AVERAGE 2963 ON FEB 11 ENRICO PESATORI GENERAL MANAGER AND VICE PRESIDENT OF THE PERSONALCOMPUTER BUSINESS UNIT SOLD 2000 SHARES OR 20 OF HIS STAKE AT 3313 ON MARCH 22 TWO OTHER VICE PRESIDENTS SOLD SMALLER AMOUNTS ALL FOUR DECLINED TO COMMENT SOME OF THESE INSIDERS HOLD OPTIONS TO ACQUIRE ADDITIONAL SHARES BUT NEARLY ALL OF THOSE OPTIONS HAVE BEEN UNPROFITABLE EVEN BEFORE THE RECENT PRICE SLUMP SEC DATA INDICATE THREE OF THE FOUR INSIDERS HAD SOLD STOCK AT HIGHER PRICES LAST YEAR BRAD ALLEN DIRECTOR OF INVESTOR RELATIONS SAID MANAGEMENT HAD NO IDEA JUST HOW BAD RESULTS WOULD BE UNTIL VERY LATE IN THE QUARTER WE PUSHED UP THE TIMING OF THE EARNINGS ANNOUNCEMENT BY FIVE DAYS THAT WOULD SUGGEST THAT THE COMPANY WAS SURPRISED ABOUT THE EXTENT OF THE LOSS AND WE WERE IN FACT SURPRISED NEGATIVELY HE SAID WE HAVE A VERY LARGE SKEW IN TERMS OF REVENUE THAT COMES IN LATE IN THE QUARTER WHICH MEANS WE DON'T HAVE A FIRM UNDERSTANDING OF THE OUTCOME OF THE QUARTER UNTIL AFTER WE CLOSE THE BOOKS HE ADDED MR ALLEN POINTED OUT THAT A HEAVY PORTION OF OUR EXECUTIVES' COMPENSATION IS THROUGH STOCK AND THEY HAVE RESTRICTED WINDOWS THROUGH WHICH THEY CAN SELL FOR THE MOST RECENT PERIOD THE COMPANY BUYING AND SELLING WINDOW OPENED THE LAST WEEK OF JANUARY AND CLOSED THE LAST WEEK OF MARCH HE SAID I THINK MANAGEMENT CAN TURN THE COMPANY AROUND SAID LAURA CONIGLIARO AN ANALYST WITH PRUDENTIAL SECURITIES INC BUT THE QUESTION IS WHAT WILL CONSTITUTE SUCCESS THE FIRST STEP IS FINDING STABILITY FINDING GROUND ZERO AND THEN SEEING THE COMPANY GROW PREDICTABLY INDEED THE LATEST RESULTS HAVE RENEWED SPECULATION ABOUT HOW MUCH TIME DIGITAL'S BOARD WILL GIVE ROBERT PALMER PRESIDENT AND CHIEF EXECUTIVE OFFICER TO SOLVE THE COMPANY'S PROBLEMS JUST LAST SUMMER ANALYSTS WERE SAYING HE HAD STABILIZED DIGITAL BUT IN RECENT MONTHS COSTCUTTING HAS SLOWED AND A CORPORATE REORGANIZATION HE SPEARHEADED WAS ABANDONED IN THE WAKE OF THE LATEST RESULTS MR PALMER COMPARED REDIRECTING DIGITAL TO TURNING A BATTLESHIP HE SAID THERE ISN'T ANY WAY THROUGH BUT TO CONTINUE WITH THIS TRANSITION DIGITAL'S PROBLEMS REFLECT A RAPID DECLINE IN ITS OLDER VAX COMPUTER BUSINESS AND ITS SERVICE BUSINESS WHICH IS DIRECTLY TIED TO THE STRENGTH OF VAX SALES AT THE SAME TIME UNTIL THE LATEST QUARTER SALES OF SYSTEMS BASED ON ITS NEW ALPHA CHIP HAD BEEN SLOW TO TAKE OFF MOST IMPORTANT DIGITAL APPEARS TO HAVE SLOWED ITS COSTCUTTING EFFORTS IN THE PAST TWO QUARTERS EVEN THOUGH GROSS PROFIT MARGINS DROPPED 10 PERCENTAGE POINTS ON A YEAROVERYEAR BASIS JAY P STEVENS OF DEAN WITTER CALLED THE QUARTER A REAL SHOCKER AND FORECAST ADDITIONAL CUTS OF AT LEAST 10000 WORKERS WITH AN ACCOMPANYING RESTRUCTURING CHARGE OF 500 MILLION TO 700 MILLION STEPHEN SMITH OF PAINEWEBBER INC SAID HE BELIEVED DIGITAL SHOULD AND WOULD CUT 20000 EMPLOYEES IN ITS NEXT FISCAL YEAR TO KEEP ITS COST STRUCTURE IN LINE WITH COMPETITORS PEAK EMPLOYMENT AT DIGITAL WAS 126000 IN 1989 ANALYSTS SLASHED EARNINGS ESTIMATES MR STEVENS NOW EXPECTS A FISCAL FOURTHQUARTER PROFIT OF 25 CENTS INSTEAD OF THE 75 CENTS HE HAD BEEN PROJECTING HE CUT HIS ESTIMATE FOR FISCAL 1995 TO AS LITTLE AS 1 A SHARE BEFORE RESTRUCTURING CHARGES FROM 250 MR SMITH SAID HE EXPECTS DIGITAL TO HAVE A FOURTHQUARTER LOSS INSTEAD OF A SMALL PROFIT AND A 1ASHARE LOSS NEXT YEAR INSTEAD OF A 50CENT PROFIT DIGITAL'S SHARES CLOSED YESTERDAY AT 2125 UP 125 CENTS ON THE BIG BOARD 9404200087 940420 WHO'S NEWS FEDERATED STORES GAVE QUESTROM BIG DISCOUNT PAY BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ALLEN QUESTROM CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF FEDERATED DEPARTMENT STORES INC CERTAINLY LIKES TO SHOP WHERE HE WORKS ACCORDING TO THE PROXY STATEMENT FROM THE DEPARTMENT STORE CHAIN BASED IN CINCINNATI OHIO MR QUESTROM'S SALARY AND AN ADDITIONAL CASH PAYMENT REMAINED UNCHANGED AT 2 MILLION FOR FISCAL 1993 ONE OF THE HIGHEST IN GENERAL RETAILING BUT HIS COMPENSATION ALSO INCLUDED A WHOPPING 168301 IN AN EXECUTIVE DISCOUNT ON MERCHANDISE PURCHASED AT FEDERATED'S STORES WHICH INCLUDE BLOOMINGDALE'S BURDINES AND RICH'S AMONG OTHERS A COMPANY SPOKESWOMAN SAID MR QUESTROM TOOK SIMILAR DISCOUNTS IN FISCAL 1992 THE SPOKESWOMAN SAID THAT LIKE EXECUTIVES AT OTHER RETAILERS TOP FEDERATED EXECUTIVES GET A DISCOUNT OF ROUGHLY 40 OFF THE SUGGESTED RETAIL PRICE SHE SAID THAT A LARGE PORTION OF THE PURCHASES LIKELY WENT TO FURNISHING AN OLD FARMHOUSE IN CONNECTICUT WHICH THE FLAMBOYANT MR QUESTROM AND HIS WIFE ARE RESTORING AND ADDING ON TO FEDERATED HAS BEEN A SOLID PERFORMER UNDER MR QUESTROM IN THE FISCAL YEAR ENDED JAN 29 PROFIT BEFORE CHARGES GREW ABOUT 48 TO 1968 MILLION UNDER MR QUESTROM FEDERATED ALSO BOUGHT A CHUNK OF RH MACY & CO SENIOR DEBT FEDERATED IS NOW IN TALKS WITH MACY CREDITORS ON A REORGANIZATION PLAN THAT WOULD MERGE THE TWO CHAINS MR QUESTROM SIGNED ONE OF THE RICHEST CONTRACTS IN RETAILING IN 1990 THE PROXY NOTED THAT MR QUESTROM WAS PAID 2 MILLION FOR SIGNING ON AS FEDERATED CHAIRMAN AND IS GUARANTEED BOTH A 12 MILLION SALARY AND 800000 VALUEADDED PAYMENT FOR EACH YEAR OF HIS FIVEYEAR CONTRACT WHEN HIS CONTRACT IS UP FEB 2 1995 HE'LL BE ENTITLED TO ANOTHER PAYMENT BASED ON ANY INCREASE IN FEDERATED'S STOCK PRICE DURING HIS FIVEYEAR REIGN OTHER FEDERATED EXECUTIVES RECEIVED SMALLER BONUSES WHICH ARE TIED TO THE COMPANY'S OPERATINGPROFIT LEVEL AND INDIVIDUAL PERFORMANCES OF EXECUTIVES JAMES ZIMMERMAN PRESIDENT AND CHIEF OPERATING OFFICER RECEIVED A 1 MILLION SALARY BUT HIS BONUS DROPPED TO 232800 FROM 310400 IN FISCAL 1992 HE TOOK 19321 IN EXECUTIVE DISCOUNTS THE SALARY OF RON TYSOE FEDERATED VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER REMAINED AT 650000 BUT HIS BONUS DROPPED TO 1857000 FROM 247600 IN 1992 HE RECEIVED 22963 IN SHOPPING DISCOUNTS AND 16116 FOR A CAR ALLOWANCE 9404200086 940420 WHO'S NEWS FORD PICKS HAGENLOCKER TO HEAD WORLDWIDE ARM DEARBORN MICH EDWARD E HAGENLOCKER WILL BE NAMED PRESIDENT OF FORD MOTOR CO'S WORLDWIDE AUTOMOTIVE GROUP AN OFFICIAL SAID MR HAGENLOCKER 54 YEARS OLD EXECUTIVE VICE PRESIDENT IN CHARGE OF NORTH AMERICAN AUTOMOTIVE OPERATIONS WILL BE CHARGED WITH IMPLEMENTING FORD'S GLOBALRESTRUCTURING PLAN FORD OFFICIALLY DECLINED TO COMMENT BUT AN ANNOUNCEMENT IS EXPECTED LATER THIS WEEK THE DETROIT NEWS WAS THE FIRST TO REPORT THE CHOICE OF MR HAGENLOCKER FOR THE POSITION ALEXANDER J TROTMAN WHO WAS NAMED CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE IN NOVEMBER WAS THE MOST RECENT HOLDER OF SUCH A POSITION MR TROTMAN IS EXPECTED TO OUTLINE A SWEEPING REORGANIZATION OF FORD'S AUTO OPERATIONS AT A MEETING WITH FORD'S TOP EXECUTIVES THIS WEEK IN TORONTO THE REORGANIZATION IS EXPECTED TO REPLACE GEOGRAPHIC GROUPS WITH GLOBAL CZARS WHO WILL HAVE RESPONSIBILITY FOR MAJOR FUNCTIONS SUCH AS PRODUCT DEVELOPMENT SALES AND ENGINES AND TRANSMISSIONS 9404200085 940420 ON THE MENA TRAIL BY EDWARD JAY EPSTEIN CBS NEWS RECENTLY FOCUSED TWO SEGMENTS OF ITS INVESTIGATIVE EYE ON AMERICA ON ALLEGED GOINGSON IN A REMOTE PLACE IN RURAL ARKANSAS MENA POPULATION 5600 THIS FORLORN TOWN MADE IT ON TO THE BIGTIME GEOMEDIA MAP BECAUSE OF THE INTERSECTION OF A NUMBER OF MYSTERIES FIRST BACK IN THE REAGAN YEARS THERE WAS THE CIA CONNECTION LANDING STRIPS OUTSIDE OF MENA WERE USED BY THE REAGAN ADMINISTRATION TO STAGE THE CLANDESTINE FLIGHTS TO MEXICO AND CENTRAL AMERICA THAT AIRDROPPED WEAPONS TO THE CONTRAS THIS 1980S ACTIVITY WAS SUPPOSEDLY SUPERVISED BY THENLT COL OLIVER NORTH NOW RUNNING FOR THE GOP SENATE NOMINATION IN VIRGINIA SECOND THERE IS THE COCAINE CONNECTION ON THEIR RETURN FLIGHTS FROM NICARAGUA AND MEXICO PILOTS ALLEGEDLY SMUGGLED BACK INTO MENA MORE THAN 20 TONS OF COCAINE THIS LED TO THE MENA COMPLEX BEING INVESTIGATED IN 1984 BY THE ARKANSAS STATE POLICE ONE OF THE PILOTS IMPLICATED IN THIS SMUGGLING WAS AN ENTREPRENEUR NAMED BARRY SEAL WHO WAS ALLOWED TO CONTINUE HIS DRUG IMPORTING ACTIVITIES AS A GOVERNMENT INFORMANT HE WAS GUNNED DOWN BY HIT MEN REPORTEDLY HIRED BY COLOMBIAN DRUG DEALERS THIRD THERE IS THE MONEY LAUNDERING CONNECTION THE CASH GENERATED BY SECRET ARMS DELIVERIES AND DRUG SALES REPORTEDLY 9 MILLION A WEEK LED TO A SCHEME IN WHICH LOCAL BUSINESSES AND ARKANSAS BANKS WERE USED TO ILLEGALLY CONVERT THE PROCEEDS INTO WHAT APPEARED TO BE ORDINARY BUSINESS TRANSACTIONS THIS IN TURN LED TO AN INTERNAL REVENUE SERVICE INVESTIGATION OF THE COMPANIES INVOLVED FOURTH THERE IS THE COVERUP CONNECTION DESPITE ALL THE EVIDENCE DEVELOPED BY THE STATE POLICE AND IRS OF GUN SMUGGLING DRUG SMUGGLING AND MONEY LAUNDERING THE REAGAN AND BUSH JUSTICE DEPARTMENTS FAILED TO BRING A CASE OR EVEN PRESENT IT TO A GRAND JURY THESE MYSTERIES AS WELL AS THE 20 TONS OF COCAINE MIGHT HAVE BECOME JUST ANOTHER FOOTNOTE IN THE MORASS KNOWN AS THE IRANCONTRA SCANDAL IF NOT FOR THE COINCIDENCE THAT THE GOVERNOR OF ARKANSAS AT THE TIME WAS BILL CLINTON THE ATTEMPT TO CONNECT PRESIDENT CLINTON TO THE MENA AFFAIR EMERGES IN THE NEW BOOK COMPROMISED CLINTON BUSH AND THE CIA BY TERRY REED AND JOHN CUMMINGS MR REED CLAIMS TO HAVE FIRSTHAND KNOWLEDGE OF THE CONSPIRACY BOTH THROUGH HIS WORK IN TRAINING CONTRA PILOTS AT MENA AND HIS ASSOCIATION WITH BARRY SEAL MR CUMMINGS IS A WELLRESPECTED REPORTER AT NEW YORK NEWSDAY WHOSE PREVIOUS SPECIALTY WAS THE MAFIA THEIR BOOK ATTEMPTS TO GRAFT THE 1980S REAGANCONTRA CONSPIRACY ONTO THE FINANCIAL AND POLITICAL ACTIVITIES OF MR CLINTON AND HIS ARKANSAS ASSOCIATES AND IN THE HYBRID PROVIDE AS THE COVER PROMISES THE BIGGER STORY BEHIND WHITEWATER IF TRUE IT WOULD INDEED BE A BIG STORY GOV CLINTON THE QUINTESSENTIAL ANTICOLD WARRIOR MAKING A SECRET DEAL WITH THE REAGAN COLD WARRIORS TO SUPPORT THE CONTRAS BUT THE BOOK OFFERS NO CREDIBLE EVIDENCE OF SUCH AN ARRANGEMENT DESPITE THE PROVOCATIVE SUBTITLE THE BOOK PROVIDES NO LINK BETWEEN MR CLINTON AND MR BUSH MR CLINTON AND THE CIA NOR FOR THAT MATTER MR CLINTON AND MR REAGAN INDEED THE ONLY BASIS FOR BELIEVING MR CLINTON EVEN KNEW ABOUT MENA IS MR REED'S UNCONFIRMED CLAIM TO HAVE SIGHTED THE GOVERNOR AT A MEETING THAT INCLUDED OLLIE NORTH AND OTHER PROMINENT IRANCONTRA FIGURES A CLAIM THAT I DO NOT BELIEVE IS CREDIBLE THE AUTHORS ALSO TRY TO CONNECT MR CLINTON THROUGH HIS ASSOCIATES THE ARGUMENT IS THAT ASSOCIATES OF HIS OR ASSOCIATES OF THESE ASSOCIATES WERE INVOLVED IN DRUGS ARMS AND MONEY LAUNDERING AT MENA AND THEREFORE MR CLINTON HIMSELF MUST HAVE BEEN PRIVY TO IT FOR EXAMPLE MR CLINTON'S HALFBROTHER ROGER WAS EMPLOYED BY A FINANCIER WHO PURCHASED COCAINE FROM SOMEONE CONNECTED TO MENA THE PROBLEM WITH SUCH GUILT BY ASSOCIATION IS THAT ARKANSAS IS A SMALL PLACE ESPECIALLY WHEN IT COMES TO LAW FIRMS INVESTMENT FIRMS AND POLITICIANS MOST ARKANSANS ARE SEPARATED BY FAR FEWER THAN SIX DEGREES OF SEPARATION IT IS NOT NECESSARILY INCRIMINATING TO KNOW SOMEONE WHO KNOWS SOMEONE TO BE SURE ILLICIT THINGS HAPPENED AT MENA AND THE JUSTICE DEPARTMENT TOOK NO ACTION IF THIS WAS A DELIBERATE MISPRISION OF A FELONY IT MAY HAVE PROCEEDED FROM THE JUSTICE DEPARTMENT'S RELUCTANCE TO BRING A CASE AGAINST CONTRASUPPORT ACTIVITIES THAT WERE APPROVED BY THE PRESIDENT AND THE CIA DIRECTOR AFTER ALL WHY SHOULD THE REAGAN ADMINISTRATION HAVE PROSECUTED ITSELF WHEN IT COULD LEGITIMATELY EVADE THE ISSUE BY CITING NATIONAL SECURITY NATIONAL SECURITY CONSIDERATIONS CERTAINLY ARE WHAT DAMPED A GENERAL ACCOUNTING OFFICE EFFORT AT INVESTIGATING MENA THE POSSIBILITY THAT THE FEDERAL GOVERNMENT WOULD RAISE SUCH A CONCERN MIGHT ALSO HAVE REASONABLY DISCOURAGED ARKANSAS PROSECUTORS AFTER THE SMUGGLER SEAL WAS SHOT TO DEATH IT IS NOT CLEAR THAT THERE WAS ANYONE TO BRING A CASE AGAINST SO WHY WASTE RESOURCES WHATEVER REASON THE CASE WASN'T PURSUED NO ONE HAS SAID THAT MR CLINTON USED HIS GUBERNATORIAL POWERS TO QUASH LEGAL PROCEEDINGS WHAT THE MENA CONNECTION BOILS DOWN TO IS SPECULATION THAT THE MONEY TRAIL FROM MENA IF IT IS NOT A DEAD END COULD LEAD SOMEWHERE IN THE UNCHARTED WILDERNESS OF WHITEWATER UNFORTUNATELY THE PRESENT EXPOSE FURNISHES NO RELIABLE COMPASS MR EPSTEIN IS THE AUTHOR OF DECEPTION THE INVISIBLE WAR BETWEEN THE KGB AND THE CIA AND OTHER BOOKS ON ESPIONAGE 9404200084 940420 INTERNATIONAL MISSING GERMAN IS FOUND IN FLORIDA REPORT SAYS FRANKFURT AP A GERMAN BILLIONAIRE PROPERTY DEVELOPER WHOSE EMPIRE COLLAPSED AFTER HIS DISAPPEARANCE IS LIVING ON A SMALL ISLAND ON FLORIDA'S WEST COAST A NEWSPAPER REPORTED THE BERLINBASED DIE WELT NEWSPAPER SAID YESTERDAY THAT JUERGEN SCHNEIDER WAS LIVING IN A RENTED VILLA ON SIESTA KEY SOUTH OF ST PETERSBURG FLA MR SCHNEIDER 59 YEARS OLD VANISHED OVER EASTER LEAVING BEHIND BILLIONS OF DOLLARS IN DEBT HIS COMPANY JUERGEN SCHNEIDER AG FILED FOR BANKRUPTCYCOURT PROTECTION LAST WEEK FRANKFURT PROSECUTORS ARE INVESTIGATING MR SCHNEIDER FOR SUSPECTED FRAUD BUT AUTHORITIES HAVEN'T ISSUED AN ARREST WARRANT AND HE ISN'T BEING SOUGHT BY INTERPOL THE CASE HAS SHAKEN GERMANY'S REALESTATE SECTOR AND RAISED QUESTIONS ABOUT THE LENDING PRACTICES OF THE COUNTRY'S BANKS DEUTSCHE BANK AG GERMANY'S LARGEST BANK AND MR SCHNEIDER'S BIGGEST CREDITOR HAS COME UNDER FIRE FOR WITHHOLDING INFORMATION FROM AUTHORITIES DIE WELT SAID A SWISS INTERPRETER WORKING FOR THE WORLD CUP SOCCER ORGANIZING COMMITTEE RECOGNIZED MR SCHNEIDER WENT TO THE RENTED VILLA AND TALKED TO THE TYCOON 9404200083 940420 UNFINISHED BUSINESS IN IRAQ BY LAURIE MYLROIE COMMENTING ON LAST WEEK'S ACCIDENTAL DOWNING OF TWO US HELICOPTERS REP LEE HAMILTON D IND REMARKED WE'VE LOST OUR FOCUS ON IRAQ INDEED WE HAVE DIVERTED BY OTHER INTERNATIONAL PROBLEMS THIS WEEK THE ADMINISTRATION IS WRINGING ITS HANDS OVER WHAT TO DO ABOUT GORAZDE AND PREOCCUPIED WITH DOMESTIC ISSUES THE US SEEMS TO HAVE FORGOTTEN THAT IT IS CONDUCTING A MAJOR MILITARY OPERATION IN IRAQI KURDISTAN IT IS PROTECTING MORE THAN THREE MILLION PEOPLE WHO ARE SUCCESSFULLY ADMINISTERING THEIR OWN AFFAIRS AND WHO ARE IMMENSELY GRATEFUL FOR AMERICA'S HELP EVEN THE TOPRANKING US OFFICIALS WHO BROKE THE NEWS OF THE CRASH SEEMED NOT FULLY UP TO SPEED DEFENSE SECRETARY WILLIAM PERRY MISSPOKE WHEN HE SAID IMMEDIATELY AFTER THE ACCIDENT THAT THE DOWNED HELICOPTERS WERE ON A UNITED NATIONS MISSION AND THEN REPEATEDLY REFERRED TO UN OFFICERS ABOARD THE HELICOPTERS A UN SPOKESMAN SOON CORRECTED THAT AS IT HAPPENS THE MILITARY OPERATION THAT PROTECTS THE KURDS CALLED OPERATION PROVIDE COMFORT IS CONDUCTED BY A MULTINATIONAL COALITION THAT INCLUDES THE US FRANCE BRITAIN AND TURKEY IT IS NOT UNDER THE AUSPICES OF THE UN THAT PROVIDE COMFORT IS NOT A UN OPERATION IS PARTICULARLY IMPORTANT TO NOTE NOW SINCE THE ADMINISTRATION IS ABOUT TO PRESENT A PRESIDENTIAL DIRECTIVE PROPOSING MORE US INVOLVEMENT IN UN PEACEKEEPING OPERATIONS PROVIDE COMFORT WORKS PARTLY BECAUSE THERE IS AUTHORITY RESPONSIBILITY AND ACCOUNTABILITY CHARACTERISTICS NOT ALWAYS PRESENT IN UN OPERATIONS MR PERRY ALSO MISSPOKE WHEN HE SUGGESTED THAT THE US AND ALLIED OFFICIALS WHO WERE KILLED IN THE ACCIDENT MOSTLY MEMBERS OF THE COALITION'S MILITARY COORDINATION CENTER BASED IN NORTHERN IRAQ WERE ON A VISIT TO A VILLAGE TO MEET WITH KURDISH ELDERS AS IF THE MCC'S INTERLOCUTORS WERE TO BE QUAINT PRIMITIVE PEOPLE THE MCC STAFF MEMBERS WERE FLYING FROM THEIR HEADQUARTERS IN ZAKHU NEAR THE TURKISH BORDER TO SALAHUDDIN DEEP IN THE KURDISH INTERIOR THERE THEY WERE TO MEET THE KURDISH POLITICAL LEADERSHIP INCLUDING MASSOUD BARZANI HEAD OF THE KURDISH DEMOCRATIC PARTY AND THE PRIME MINISTER OF THE ELECTED KURDISH GOVERNMENT ABDULLAH RASOUL CONTRARY TO A WIDESPREAD IMPRESSION THAT THE MCC WAS ESTABLISHED TO COORDINATE WITH THE KURDS IT WAS ORIGINALLY FORMED IN 1991 TO COORDINATE WITH THE IRAQI ARMY ON THE REMOVAL OF IRAQI FORCES FROM THE SECURITY ZONE WITH LATER CONTACTS IT EVOLVED INTO A FORUM FOR EXCHANGING AMERICAN AND IRAQI CONCERNS RELATED TO MAINTAINING THE SECURITY ZONE IN NORTHERN IRAQ THE TWO SIDES USED TO MEET WEEKLY AT AN IRAQI POST NEAR MOSUL HOWEVER IN EARLY 1993 BAGHDAD BROKE OFF THOSE TALKS AT A TIME OF RENEWED USIRAQI TENSIONS AS SADDAM HUSSEIN CHALLENGED GEORGE BUSH DURING HIS LAST DAYS IN OFFICE ONE OF THE MCC'S MAJOR FUNCTIONS NOW IS TO OVERSEE THE HUMANITARIAN RELIEF PROGRAM IN NORTHERN IRAQ THE UN WHICH FIRST HAD RESPONSIBILITY FOR SUCH A PROGRAM PROVED INCOMPETENT ALLOWING ITSELF TO BE MANIPULATED AND USED BY BAGHDAD THE UN INSISTED ON CHANGING FOREIGN CURRENCY AT A VASTLY INFLATED OFFICIAL RATE AT ONE POINT IT BLOCKED THE SHIPMENT OF DIESEL FUEL URGENTLY NEEDED FOR A WINTER PLANTING BECAUSE IT HAD NOT RECEIVED BAGHDAD'S PERMISSION TO BRING THE FUEL IN IT TOOK THAT STANCE ALTHOUGH THE FUEL WAS COMING FROM TURKEY DIRECTLY INTO NORTHERN IRAQ AND BAGHDAD'S PERMISSION WAS IRRELEVANT CONGRESS PLAYED A KEY ROLE IN PREVENTING THAT HUMANITARIAN RELIEF PROGRAM FROM BECOMING ANOTHER UNSUPERVISED DISASTER IN LATE 1992 IT PASSED LEGISLATION CUTTING OFF MONEY TO THE UN RELIEF PROGRAM IN NORTHERN IRAQ AND REDIRECTING IT TO THE DEFENSE DEPARTMENT WHICH WAS TO RUN ITS OWN PROGRAM THE RELIEF PROGRAM IS NOW DIVIDED AMONG THE PENTAGON THE STATE DEPARTMENT AND OTHER BUREAUCRACIES IN ANY CASE IT WORKS FOR THIS THE KURDS THEMSELVES DESERVE MUCH CREDIT IN THE THREE YEARS SINCE THE GULF WAR IRAQ'S KURDS HAVE DEMONSTRATED A CAPACITY FOR REASONABLY EFFECTIVE SELFGOVERNMENT UNDER VERY DIFFICULT CIRCUMSTANCES THEY ARE SUBJECT TO THE UN EMBARGO ON IRAQ AS WELL AS A SECONDARY EMBARGO IMPOSED BY BAGHDAD ON THE NORTH DESPITE THAT THE KURDISH LEADERSHIP IS DOING A BETTER JOB ADMINISTERING NORTHERN IRAQ THAN YASSER ARAFAT IS LIKELY TO DO IN GAZA AND JERICHO MOREOVER KURDISH SOCIETY IS REMARKABLY COHESIVE DESPITE ECONOMIC HARDSHIP THE CRIME RATE IN ANY IRAQI KURDISH CITY IS LESS THAN THAT IN ANY AMERICAN CITY ABOVE ALL THE KURDS ARE NOT FIGHTING EACH OTHER WERE THEY TO DO SO THEY MIGHT LOSE THE SUPPORT OF THE INTERNATIONAL COALITION THAT PROTECTS THEM THE KURDS' POLITICAL MATURITY IS PART OF SADDAM'S LEGACY THEY KNOW THAT IF THEY FIGHT EACH OTHER SADDAM'S GENOCIDAL REGIME WILL RETURN THE DOWNING OF THE HELICOPTERS IS A REMINDER AS MR HAMILTON OBSERVED THAT WE STILL HAVE A LOT OF UNFINISHED BUSINESS SO FAR AS SADDAM HUSSEIN IS CONCERNED THE SANCTIONS REGIME IS ERODING FRANCE HAS BOLTED FROM THE ANTIIRAQ COALITION AND IS WORKING HANDINGLOVE WITH BAGHDAD TO GET SANCTIONS LIFTED IF SADDAM COULD SELL OIL WITHOUT CONSTRAINTS HE WOULD HAVE THE MEANS TO FEED HIS ARMY RESTORE ITS MORALE AND ATTACK THE KURDS OTHER US GOALS IN THE MIDEAST SUCH AS THE PEACE PROCESS WOULD ALSO BE IMPERILED BY SADDAM'S RESURGENCE THERE IS A QUICK EASY WAY TO INCREASE THE PRESSURE ON BAGHDAD CUT OFF IRAQ'S OIL SALES TO JORDAN THEY ARE THE SINGLE MOST IMPORTANT SOURCE OF INCOME FOR SADDAM MOREOVER THE OIL TANKERS ARE USED TO SMUGGLE CONTRABAND FROM JORDAN TO IRAQ FACILITATING THE REBUILDING OF SADDAM'S MILITARY ESTABLISHMENT IT MAY BE OBJECTED THAT SUCH A MEASURE WILL THREATEN JORDAN'S STABILITY BUT SURELY OTHER SOURCES OF OIL CAN BE FOUND WASHINGTON SHOULD HAVE ENOUGH INFLUENCE WITH AT LEAST ONE OF THE OILRICH GULF STATES TO CAJOLE IT INTO SUPPLYING OIL TO JORDAN ON CONCESSIONARY TERMS THE BUSH ADMINISTRATION NEVER LIKED TO DEAL WITH THE UNFINISHED BUSINESS IN IRAQ BECAUSE IT SUGGESTED THAT ITS SPLENDID LITTLE WAR ENDED LESS THAN BRILLIANTLY WHAT IS THE CLINTON ADMINISTRATION'S PROBLEM MS MYLROIE IS WRITING A BOOK WITH KAMRAN KARADAGHI TITLED KURDS TURKS ARABS AND AMERICA DEVELOPMENTS IN IRAQI KURDISTAN SINCE THE GULF CRISIS FUNDED BY THE US INSTITUTE OF PEACE 9404200082 940420 NEW BRAND OF COLA IN UK LOOKS LIKE A US CLASSIC LONDON WHAT COLA COMES DRESSED IN A RED AND WHITE CAN BOASTING A CLASSIC NAME AND ORIGINAL AMERICAN TASTE WHY CLASSIC COLA OF COURSE AND IT SEEMS THE NEW HOUSE BRAND IN BRITAIN'S BIGGEST SUPERMARKET CHAIN J SAINSBURY PLC IS CREATING A STIR AMONG MANY WHO BELIEVE IT'S A CLONE OF COCACOLA SAINSBURY UNVEILED THE NEW BRAND TWO DAYS AGO STOCKING THE PRODUCT ON SHELVES IN ITS 341 STORES NATIONWIDE THE SAME SHELVES THAT STOCK COCACOLA THE SAINSBURY BRAND COMES IN A RED AND WHITE CAN WITH THE WHITE WORD COLA WHERE MANY COKEDRINKERS ARE USED TO FINDING THE WHITE WORD COKE SO IS IT A COPY NOT AT ALL NOT AT ALL ASSURES A SAINSBURY SPOKESWOMAN WE DON'T BELIEVE IT LOOKS LIKE THE COKE CAN AT ALL WE'VE GOT THE SAINSBURY NAME EMBLAZONED ACROSS THE PACKAGING SAINSBURY WITH 14 BILLION IN ANNUAL SALES IS ONE OF COCACOLA CO'S BIGGEST CUSTOMERS ACCORDING TO COCACOLA INTERNATIONAL VICE PRESIDENT ROBERT WILKINSON IN LONDON WE HAVE MADE OUR POSITION REGARDING SAINSBURY'S NEW COLA KNOWN TO THEM MR WILKINSON SAID DECLINING TO SAY WHAT THAT POSITION IS ADDING COCACOLA CO HAS ALWAYS HAD A STRONG AND VALUED RELATIONSHIP WITH SAINSBURY 9404200080 940420 NORTHROP PICKS THREE TO OVERSEE MERGER WITH GRUMMAN CORP LOS ANGELES NORTHROP CORP NAMED THREE EXECUTIVES TO OVERSEE THE MERGING OF OPERATIONS WITH THOSE OF GRUMMAN CORP WHICH NORTHROP IS ACQUIRING FOR 217 BILLION JAMES G ROCHE 54 YEARS OLD A NORTHROP VICE PRESIDENT AND A SENIOR COMPANY STRATEGIST WILL BE COCHAIRMAN OF THE TRANSITION TEAM ALONG WITH JACOB J BUSSOLINI JR 58 A GRUMMAN SENIOR VICE PRESIDENT OLIVER C BOILEAU 67 ANOTHER NORTHROP VICE PRESIDENT AND CHIEF OF B2 STEALTH BOMBER OPERATIONS WILL SERVE AS PRESIDENT AND CHIEF OPERATING OFFICER OF GRUMMAN OPERATIONS DURING THE TRANSITION PERIOD MR BOILEAU PLANS TO RETIRE FROM NORTHROP IN EARLY 1995 THE EXECUTIVES WILL REPORT TO KENT KRESA 56 NORTHROP CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE AS ANNOUNCED EARLIER GRUMMAN CHAIRMAN RENSO CAPORALI 61 IS BEING NOMINATED TO THE BOARD OF THE MERGED COMPANY TO BE NAMED NORTHROP GRUMMAN CORP AFTER A MONTHLONG BATTLE NORTHROP'S 62ASHARE BID BEAT OUT A 55ASHARE OFFER FROM MARTIN MARIETTA CORP GRUMMAN A DEFENSEELECTRONICS AND TACTICALAIRCRAFT CONCERN IS BASED IN BETHPAGE NY THE ACQUISITION WILL BE FINAL ON MAY 18 WHEN NORTHROP SHAREHOLDERS APPROVE THE NAME CHANGE MAJOR DECISIONS ABOUT HOW TO MERGE SPECIFIC OPERATIONS WILL BE MADE IN THE NEXT 60 DAYS NORTHROP SAID 9404200079 940420 TEXAS JOURNAL LETTERS TO THE EDITOR HMOS LESS CARE FOR LESS MONEY REGARDING YOUR MARCH 30 ARTICLE ON THE HEALTH MAINTENANCE ORGANIZATION SITUATION IN TEXAS FOR KAISER'S HMO IN DALLAS LAWSUITS LED TO LOSS IN 1993 I WAS CONCERNED BY THE LAST STATEMENT IN WHICH THE SPOKESMAN FOR KAISER FOUNDATION HEALTH PLAN OF TEXAS THE DALLAS AREA'S BIGGEST HMO SAID OF LAWSUITS WE JUST VIEW THIS AS THE COST OF DOING BUSINESS MALPRACTICE SUITS ARE A PROBLEM IN HMOS WHICH ARE BUILT ON THE CONCEPT OF LESS CARE FOR LESS MONEY IN ORDER TO CONSERVE CASH LESS TESTING IS DONE AND POORQUALITY CARE RESULTS IN A HIGHER LEVEL OF LAWSUITS FROM MISDIAGNOSIS A PHYSICIAN LIKE MYSELF AN INTERNIST LISTENS TO THE PATIENT'S COMPLAINTS AND HAS TO DECIDE WHICH ONES APPEAR TO REQUIRE FURTHER TESTING AND WHICH ONES CAN BE TREATED CONSERVATIVELY AND WATCHED THIS TAKES MANY YEARS OF DEALING WITH A VARIETY OF PATIENTS IN ORDER TO GET TO THAT STANDARD OF CARE UNFORTUNATELY MOST OF THE HMOS ARE RUN BY YOUNG PHYSICIANS JUST OUT OF THEIR RESIDENCIES WHO DO NOT HAVE THE QUALITY OF EXPERIENCE THAT A PRACTITIONER IN MY STAGE WOULD THE PHYSICIANPATIENT RELATIONSHIP IS A SACRED ONE PUTTING LEVELS OF BUREAUCRACY BETWEEN THE PHYSICIAN AND THE PATIENT WILL EVENTUALLY LEAD TO A DECREASE IN THE QUALITY OF CARE THAT IS GOING TO BE PRODUCED IN THE FUTURE I HOPE THAT THE AMERICAN PUBLIC UNDERSTANDS WHAT THEY ARE ABOUT TO RECEIVE 9404200078 940420 TEXAS JOURNAL WINNERS & LOSERS ART LOVERS BANK ONE BOWING TO PROTESTS WON'T SELL A CALDER SCULPTURE IN FRONT OF ONE OF ITS FORT WORTH LOCATIONS GERALD J FORD THE DALLAS BANKER AND NEW YORK INVESTOR RONALD PERELMAN WON THE BIDDING FOR FIRST NATIONWIDE BANK PARK LANDS HUNDREDS OF STATE PRISON INMATES WILL BE PUT TO WORK CLEARING BRUSH AND MENDING FENCES ON TEXAS PARKS AND WILDLIFE LANDS GUN DEALERS SAN ANTONIO BANNED GUN SHOWS AT CITY FACILITIES IN AN EFFORT TO REDUCE MURDERS HUNGRY BABIES PROTESTERS PICKETED THE HOUSTON MUSEUM OF NATURAL SCIENCE AFTER IT EXPELLED A BREASTFEEDING MOTHER FROM A FABERGE EXHIBIT EAST TEXAS HACKERS THE SECRET SERVICE SAYS AN EMAIL THREAT AGAINST PRESIDENT CLINTON ORIGINATED IN NACOGDOCHES 9404200077 940420 BUSINESS BRIEF FEDERAL SIGNAL CORP COMPANY AGREES TO ACQUIRE JUSTRITE MANUFACTURING CO FEDERAL SIGNAL CORP SAID IT AGREED TO PURCHASE JUSTRITE MANUFACTURING CO TERMS WEREN'T DISCLOSED BASED IN DES PLAINES ILL JUSTRITE WHICH MAKES SAFETY EQUIPMENT FOR THE STORAGE TRANSFER USE AND DISPOSAL OF FLAMMABLE AND HAZARDOUS MATERIALS HAS ANNUAL SALES OF MORE THAN 33 MILLION AND EMPLOYS 225 PEOPLE FEDERAL SIGNAL OF OAK BROOK ILL MAKES PUBLIC SAFETY SIGNALING AND COMMUNICATIONS EQUIPMENT FIRE TRUCKS AMBULANCES STREETSWEEPING AND VACUUMLOADING VEHICLES AND PARKINGCONTROL EQUIPMENT AMONG OTHER THINGS THE TRANSACTION IS EXPECTED TO BE COMPLETED WITHIN 30 DAYS 9404200076 940420 MARKETING & MEDIA ADVERTISING HERE COMES THE SUN TO CONFOUND HEALTHSAVVY LOTION MARKETERS BY KEVIN GOLDMAN HERE COMES THE SUN THE ENDLESS FRIGID WINTER IS FINALLY A MEMORY AS TEMPERATURES IN THE NORTHEAST YESTERDAY CLIMBED INTO THE 80S WITH SEASONAL PREDICTABILITY THE ARRIVAL OF LONGER DAYS HERALDS THE SUNTANNING INDUSTRY'S LATEST ATTEMPTS TO INDUCE SUN WORSHIPPERS TO SLATHER THEIR BODIES WITH LOTION THEIR PITCH HAS CHANGED HOWEVER FOR OVER TWO DECADES BAIN DE SOLEIL PURVEYED THE ST TROPEZ TAN BUT THAT WAS BEFORE THE SUN BEGAN GETTING A BAD RAP FROM DERMATOLOGISTS NOW MORE THAN EVER MARKETERS REALIZE THAT WHEN IT COMES TO HEALTH MATTERS IT DOESN'T PAY TO CLOUD THE ISSUE BAIN DE SOLEIL AND OTHER SUNTANLOTION MANUFACTURERS ARE GINGERLY REPOSITIONING THEIR PRODUCTS PROMISING A HAZARDFREE YET GLAMOROUS TAN FORGET THE OLD DEEP DARK AND SEXY ST TROPEZ TAN HOWEVER INSTEAD BAIN DE SOLEIL A UNIT OF PROCTER & GAMBLE IS INTRODUCING A NEW PRODUCT SPF + COLOR WITH THE EARNEST SLOGAN THE SERIOUS TAN FOR THOSE WHO TAKE PROTECTION SERIOUSLY SPF + COLOR WHICH COMBINES A SUNSCREEN AND A SUNLESS TANNING AGENT IS BEING SOLD AS THE INTELLIGENT TAN BAIN DE SOLEIL ISN'T ALONE CALIFORNIA TAN A LOS ANGELES MANUFACTURER OF EXPENSIVE 15 TO 50 A BOTTLE PRODUCTS SOLD THROUGH SALONS LAUNCHED ITS FIRST MASSMARKET CAMPAIGN LAST MONTH WITH THE SLOGAN THE POSITIVE EFFECTS OF THE SUN AND HAWAIIAN TROPIC IN DAYTONA BEACH FLA TELLS ITS USERS TO BE SUN SMART THE STRATEGY ISN'T AS SUREFIRE AS IT SEEMS HOWEVER ACCORDING TO MARKETING EXPERTS FOR INSTANCE MOST CONSUMERS ARE WELL AWARE OF THE SUN'S DANGERS IT WILL TAKE AN AGGRESSIVE AND COSTLY EFFORT ON THE PART OF MANUFACTURERS TO CONVINCE THE POPULATION OTHERWISE WE HAVE INTELLIGENT MOTOR OIL QUAKER STATE AND NOW WE HAVE AN INTELLIGENT TAN SAYS JACK TROUT PRESIDENT OF TROUT & RIES A MARKETINGSTRATEGY FIRM IN GREENWICH CONN WHO ADDS ACTUALLY IT'S A GOOD IDEA IT APPEALS TO THE HUMAN INSTINCT THAT PEOPLE WANT TO GET TAN BUT BE SMART ABOUT DOING IT SAYS JOHN LISTER CHIEF EXECUTIVE OFFICER OF LISTER BULTER A NEW YORK CONSULTING FIRM THE SUNTANLOTION INDUSTRY IS TRYING TO TRANSFER FROM GLAMOURPOSITIONING TO ONE OF OUR PRODUCT IS BETTER FOR YOU' THAT'S NOT AN EASY THING TO DO THE COMPANIES INSIST THEY ARE UP TO THE CHALLENGE CHERYL STONE ADVERTISING DIRECTOR OF CALIFORNIA TAN SAYS THE MANUFACTURER'S ADS WHICH BEGAN APPEARING LAST MONTH IN ISSUES OF PEOPLE AND YM ARE THE ONLY SOURCE OF INFORMATION ON THE POSITIVE EFFECTS OF THE SUN THE ADS SOME OF WHICH DON'T SPECIFY WHAT THOSE EFFECTS ARE FEATURE A TOPLESS FEMALE MODEL HER HANDS PLACED STRATEGICALLY ONE HEADLINE ASKS ARE YOU GETTING THE MOST FROM THE SUN WE HAVE A STORY TO TELL SAYS MS STONE WHICH IS SUN EQUALS SKIN CANCER ISN'T TOTALLY CORRECT AT STAKE IS A SHARE OF THE SUNCARE CATEGORY WHICH HAD SALES OF 3349 MILLION FOR THE YEAR ENDED MAY 30 1993 A BOOST OF 146 FROM THE PREVIOUS 52WEEK PERIOD ACCORDING TO INFORMATION RESOURCE'S INFOSCAN SERVICE THE MARKET LEADER COPPERTONE A UNIT OF SCHERINGPLOUGH ISN'T PLANNING A CHANGE IN STRATEGY THAT'S BECAUSE TANNING WAS DROPPED FROM ITS ADVERTISING A LONG TIME AGO SAYS RUSS ELLIOT VICE PRESIDENT OF MARKETING AT SCHERINGPLOUGH'S HEALTHCARE PRODUCTS DIVISION EVEN SO COPPERTONE'S ONCEWINNING SLOGANS TAN DON'T BURN AND FLASH HIM A COPPERTONE TAN REMAIN PART OF THE MADISON AVENUE LEXICON IN FACT ADS FOR COPPERTONE'S SPORT SUNSCREEN DON'T EVEN CONTAIN THE WORD TAN THE ADS NOW RUNNING IN MAGAZINES SUCH AS SEVENTEEN DEPICT VOLLEYBALL AND TENNIS GAMES NOT THE BEACH FOR A PRODUCT BILLED AS ULTRA SWEATPROOF SAYS MR ELLIOT THE LAST THING WE WANT TO SHOW IS SOMEONE LOUNGING ON A BEACH PROCTER & GAMBLE DECLINED TO COMMENT ON ITS AD PLANS FOR BAIN DE SOLEIL BEYOND A PREPARED STATEMENT THAT OFFERED LITTLE INSIGHT INTO ITS STRATEGY ITS AD AGENCY AYER REFERRED CALLS BACK TO PROCTER & GAMBLE AND HAWAIIAN TROPIC SAYS IT IS RETURNING TO EDUCATIONAL ADVERTISING AFTER LAST SUMMER'S ESCAPE TO THE ISLANDS CAMPAIGN EMPHASIZING THE LURE OF HAWAII NOW THE COMPANY IS USING THE BE SUN SMART THEME IN ADS FOR SUCH SUN BLOCKERS AS JUST FOR KIDS AND BABY FACES NOW RUNNING IN SEVENTEEN AND GLAMOUR AMONG OTHER MAGAZINES ONE AD ASKS ARE YOUR KIDS FASTER THAN THE SUN'S RAYS IN THIS AGE OF INFORMATION OVERFLOW IT'S IMPORTANT TO EDUCATE THE CUSTOMER SAYS JEFF LALANNE DIRECTOR OF ADVERTISING AT HAWAIIAN TROPIC MAYBE SO BUT MR LISTER THE CONSULTANT ARGUES THAT THE COMPANIES HAVE SO LONG POUNDED HOME THE LINK BETWEEN GETTING TAN AND LOOKING GOOD THAT THEY WILL HAVE TO INVEST SIGNIFICANT DOLLARS TO UNDO THOSE BEAUTY MESSAGES 9404200075 940420 REVIEW & OUTLOOK EDITORIAL THE NEW CIVIL RIGHTS ACTIVISTS MEET THE NEW CIVIL RIGHTS ACTIVISTS THEIR BELIEF IS THAT THE RIGHT TO EARN A LIVING FREE FROM EXCESSIVE REGULATION IS GUARANTEED BY THE CONSTITUTION THEIR LAWYER IS CLINT BOLICK LAST MONTH THEY WON ANOTHER CIVIL RIGHTS VICTORY FEDERAL JUDGE JOHN RAINEY DECLARED UNCONSTITUTIONAL A 70YEAROLD HOUSTON LAW BANNING TAXILIKE JITNEYS HIS DECISION IF UPHELD COULD SET OFF CHALLENGES IN OTHER CITIES TO ENTRENCHED MONOPOLIES THAT THWART MINORITY ENTREPRENEURS THE ANTIJITNEY LAW WAS CHALLENGED BY ALFREDO SANTOS A HOUSTON CAB DRIVER AND COLLEGE STUDENT WHO FIRST ENCOUNTERED JITNEYS DURING A VISIT TO MEXICO CITY HE LEARNED THAT JITNEYS ARE CARS OR VANS THAT OPERATE ALONG FIXED ROUTES AND ARE POPULAR WITH POOR OR ELDERLY RESIDENTS IN AREAS WITH SPOTTY PUBLIC TRANSIT MR SANTOS BEGAN HIS OWN JITNEY SERVICE IN 1983 CHARGING 1 FOR UP TO A FIVEMILE RIDE HIS PRICE WAS TWICE THAT OF A LOCAL BUS BUT ONEFIFTH THE PRICE OF A CAB MR SANTOS RAN A PROSPERING SERVICE FOR ABOUT NINE MONTHS THEN A CITY OFFICIAL THREATENED TO TAKE HIS TAXICAB LICENSE AWAY UNLESS HE CLOSED HIS BUSINESS USING THE KANSAS CITYBASED LANDMARK LEGAL FOUNDATION MR SANTOS HAS FOUGHT TO GET HIS BUSINESS BACK CLINT BOLICK THEN AN ATTORNEY WITH LANDMARK FOUND THAT IN 1915 THERE WERE 62000 OPERATING JITNEYS IN THE UNITED STATES STREETCAR COMPANIES BEGAN CAMPAIGNS TO OUTLAW THEM AND WITHIN A DECADE JITNEYS WERE GONE FROM ALMOST EVERY MAJOR CITY TODAY ILLEGAL JITNEY SERVICES THRIVE IN CHICAGO PITTSBURGH AND NEW YORK CITY THOUGH AUTHORITIES FIGHT THEM JUDGE RAINEY NOTED THAT HOUSTON'S ANTIJITNEY LAW DROVE DOZENS OF OPERATORS MANY OF THEM MINORITY OUT OF BUSINESS THE COURTS HAVE CONSISTENTLY HELD THAT THE OPPORTUNITY TO PURSUE ONE'S LIVELIHOOD IS A CONSTITUTIONALLY PROTECTED LIBERTY INTEREST WHICH MAY NOT BE ARBITRARILY DENIED HE RULED THE HOUSTON JITNEY DECISION ISN'T THE ONLY ECONOMIC RIGHTS VICTORY THAT LANDMARK AND MR BOLICK NOW WITH THE INSTITUTE FOR JUSTICE IN WASHINGTON HAVE WON IN 1991 A COURT STRUCK DOWN A JIM CROWERA LAW IN WASHINGTON DC THAT PREVENTED EGO BROWN FROM EMPLOYING HOMELESS PEOPLE TO SELL SHOESHINES ON THE STREETS MR BOLICK WON ANOTHER VICTORY IN 1992 WHEN THE WASHINGTON DC CITY COUNCIL AGREED TO ALLOW TAALIBDIN ABDUL UQDAH AND PAMELA FARRELL TWO AFRICAN HAIRBRAIDERS TO REMAIN IN BUSINESS WITHOUT SECURING AN EXPENSIVE AND SUPERFLUOUS COSMETOLOGY LICENSE LATELY MR BOLICK'S INSTITUTE FOR JUSTICE HAS TAKEN UP THE CAUSE OF LEROY JONES AND THREE OTHER FORMER CABDRIVERS WHO WANT TO OVERTURN A DENVER TAXICAB LICENSING SYSTEM THAT HAS BLOCKED EVERY NEW APPLICANT SINCE 1947 CHIP MELLOR MR BOLICK'S PARTNER NOTES THAT 87 OF US CITIES RESTRICT ENTRY INTO THE TAXICAB BUSINESS THOUGH IT'S A CLASSIC WAY FOR POOR PEOPLE TO START THEIR OWN BUSINESS ONE HOUSE OF THE COLORADO LEGISLATURE HAS ALREADY APPROVED A BILL DEREGULATING DENVER'S TAXICABS THE OTHER HOUSE IS EXPECTED TO ACT SHORTLY IF THAT HAPPENS PERHAPS SOMEONE WILL CHALLENGE NEW YORK CITY'S INFAMOUS MEDALLION SYSTEM WHICH HAS LIMITED THE NUMBER OF YELLOW CABS TO ONLY 11800 SINCE 1937 MESSRS BOLICK AND MELLOR SAY A BEWILDERING ARRAY OF LOCAL LAWS AND REGULATIONS RESTRICT ECONOMIC OPPORTUNITY FOR PEOPLE LIKE THEIR CLIENTS NEARLY 500 OCCUPATIONAL LICENSING LAWS LIMIT WHO CAN APPLY FOR NEARLY 10 OF ALL US JOBS MANY LICENSING BOARDS PROTECT EXISTING BUSINESSES THE NATION HAS REACHED A CONSENSUS THAT WELFARE HAS DESTROYED INDIVIDUAL INITIATIVE IF IN TURN THE CONSENSUS ANSWER IS POLICIES THAT ENCOURAGE EMPLOYMENT WHAT IS THE POINT OF ANTIQUE LAWS THAT CUT OFF THE BOTTOM RUNGS OF THE ECONOMIC LADDER WASHINGTON HOWEVER SEEMS ABLE TO THINK NO FURTHER THAN JOB TRAINING MORE INNOVATIVE POLITICIANS WOULD FIND WAYS TO JOIN CAUSE WITH THE KIND OF ENERGETIC PEOPLE DESCRIBED HERE AND THERE ARE LEGIONS OF THEM TO FIND WAYS TO KNOCK DOWN THE LEGAL BARRIERS THAT STIFLE OPPORTUNITY THESE HURDLES MAY BE AS DESTRUCTIVE TO ECONOMIC PROGRESS TODAY AS THE JIM CROW LAWS WERE TO POLITICAL INVOLVEMENT IN AN EARLIER ERA 9404200073 940420 BUSINESS BRIEF INCO LTD FIRSTQUARTER LOSS WIDENED ON NICKEL MARKET WEAKNESS INCO LTD CITING CHARGES AND PERSISTENTLY WEAK NICKEL MARKETS REPORTED A WIDENED LOSS FOR THE FIRST QUARTER THE TORONTO COMPANY HAD A LOSS OF 60 MILLION OR 53 CENTS A SHARE ON REVENUE OF 528 MILLION COMPARED WITH A LOSS OF 226 MILLION OR 22 CENTS A SHARE ON REVENUE OF 5572 MILLION A YEAR EARLIER THE LATEST QUARTER INCLUDED 56 MILLION OF CHARGES RELATED TO PRODUCTION SHUTDOWNS AND JOB CUTS INCO'S AVERAGED REALIZED NICKEL PRICE FOR THE QUARTER FELL TO 277 A POUND FROM 295 A POUND THE COMPANY STARTED SCALING BACK NICKEL PRODUCTION IN DECEMBER WHICH HELPED NICKEL PRICES FIRM BUT THE PRICE RECENTLY RESUMED ITS LONG DOWNTURN BECAUSE NICKEL INVENTORIES FAILED TO FALL SAID JULIAN BALDRY MINING ANALYST WITH NESBITT THOMSON INC IN TORONTO UNLESS NICKEL MAKERS CUT PRODUCTION THE PRICE OF NICKEL IS LIKELY TO CONTINUE SLIDING FROM ITS CURRENT LEVEL OF ABOUT 242 A POUND MR BALDRY SAID 9404200071 940420 BUSINESS BRIEF HARCOR ENERGY INC COMPANY TO BUY 75 STAKE IN ENERGY RESERVES PLANT HARCOR ENERGY INC SAID IT AGREED TO ACQUIRE A 75 STAKE IN CERTAIN CALIFORNIA ENERGY RESERVES A NATURALGAS PROCESSING PLANT AND GATHERING LINES FOR 50 MILLION IN CASH AND WARRANTS THE HOUSTON ENERGY CONCERN WOULDN'T IDENTIFY THE SELLER WHO WILL CONTINUE TO OPERATE THE PROPERTIES BUT SAID THE RESERVES IN KERN COUNTY CALIF ARE AN ESTIMATED 79 MILLION BARRELS OF OIL AND 489 BILLION CUBIC FEET OF NATURAL GAS THE TRANSACTION ALSO INCLUDES A NATURALGAS PROCESSING PLANT WITH CAPACITY OF 23 MILLION CUBIC FEET A DAY AND ASSOCIATED GATHERING LINES HARCOR SAID IT WILL PAY 45 MILLION IN CASH AT CLOSING AND WILL ISSUE THE SELLER A SEVENYEAR WARRANT TO ACQUIRE ONE MILLION HARCOR COMMON SHARES AT 5 APIECE FOR 1993 HARCOR REPORTED A LOSS OF 13 MILLION OR 23 CENTS A SHARE ON REVENUE OF 67 MILLION ITS RESERVES AS OF DEC 31 WERE 17 BILLION CUBIC FEET OF NATURAL GAS AND 17 MILLION BARRELS OF OIL 9404200070 940420 BUSINESS BRIEF HOLLINGER INC PUBLISHING CONCERN CANCELS UNIMEDIA INC STOCK ISSUE HOLLINGER INC THE TORONTOBASED PUBLISHING EMPIRE CONTROLLED BY MEDIA BARON CONRAD BLACK SAID IT HAS DECIDED NOT TO PROCEED WITH A PROPOSED 40 MILLION CANADIAN DOLLAR US289 MILLION ISSUE OF STOCK IN ITS UNIMEDIA INC UNIT JOHN BOULTBEE VICE PRESIDENT OF FINANCE AT HOLLINGER SAID THAT VOLATILE CANADIAN STOCK MARKETS WERE A MAJOR REASON FOR THE DECISION TO CANCEL THE OFFERING IT WASN'T GOING TO SELL OUT MR BOULTBEE SAID WE DON'T BUY THINGS AT PRICES ABOVE LEVELS WE FEEL ARE FAIR VALUES AND WE'RE STUBBORN ABOUT SELLING THINGS TOO MR BOULTBEE SAID HE DOESN'T EXPECT THE CANCELLATION OF THE UNIMEDIA INITIAL OFFERING TO HAVE ANY IMPACT ON HOLLINGER'S PLANS TO SELL A STAKE IN ITS AMERICAN PUBLISHING CO UNIT HOLLINGER HAS SAID IT HOPES TO RAISE 1343 MILLION FROM THE SALE OF 84 MILLION SHARES IN THE UNIT WHICH OWNS ABOUT 140 SMALL DAILY AND WEEKLY US NEWSPAPERS AS WELL AS THE JUSTACQUIRED CHICAGO SUNTIMES HE ADDED THAT IT HAS BEEN MORE DIFFICULT TO EXPLAIN UNIMEDIA'S SPOTTIER FINANCIAL RESULTS THAN AMERICAN PUBLISHING'S STEADY GROWTH IN REVENUE AND OPERATING PROFIT 9404200069 940420 BUSINESS BRIEF SIGNET BANKING CORP COMPANY POSTS 39 INCREASE IN EARNINGS FOR FIRST QUARTER SIGNET BANKING CORP SAID IT POSTED A 39 RISE IN FIRSTQUARTER NET INCOME CITING ITS BANK CARD'S TARGET MARKETING PROGRAM AND ITS FOCUS ON REDUCING ITS RISK PROFILE THE RICHMOND VA COMMERCIAL AND CONSUMER BANK COMPANY SAID PROFIT ROSE TO 531 MILLION OR 93 CENTS A SHARE FROM 383 MILLION OR 68 CENTS A SHARE A YEAR EARLIER PERSHARE EARNINGS WERE ADJUSTED TO REFLECT A 2FOR1 STOCK SPLIT IN JULY SIGNET WHICH HAS 115 BILLION OF ASSETS SAID IT ADDED ALMOST 800 MILLION IN CARD RECEIVABLES IN THE QUARTER NONPERFORMING ASSETS WHICH TOTALED 884 MILLION DECLINED 538 MILLION FROM A YEAR EARLIER 9404200068 940420 TRADING WOES HURT 1STQUARTER RESULTS AT CITICORP BANKERS TRUST CHEMICAL BY G BRUCE KNECHT STAFF REPORTER OF THE WALL STREET JOURNAL CITICORP AND BANKERS TRUST NEW YORK CORP REPORTED DRASTIC DECLINES IN TRADING REVENUE THE RESULT OF RISING INTEREST RATES THAT SLAMMED THEIR BOND AND CURRENCY TRADING OPERATIONS NONETHELESS BOTH BANKS REPORTED RESPECTABLE RESULTS BANKERS TRUST HAD JUST 14 MILLION IN FIRSTQUARTER TRADING REVENUE DOWN FROM 346 MILLION A YEAR EARLIER DESPITE THAT HUGE DECLINE BANKERS TRUST REPORTED A 58 RISE IN NET INCOME FOR THE QUARTER AT CITICORP TRADING REVENUE OF 71 MILLION WAS 386 MILLION LESS THAN A YEAR EARLIER CITICORP'S FIRSTQUARTER NET INCOME DECLINED BY 17 FROM THE YEAREARLIER QUARTER ALTHOUGH ITS OPERATING PROFIT IMPROVED ALSO REPORTING LOWER NET INCOME WAS CHEMICAL BANKING CORP WHICH SAID YESTERDAY THAT PROFIT DECLINED 15 WHILE FIRST INTERSTATE CORP REPORTED A 39 DECLINE IN NET MEANWHILE SEVERAL REGIONAL BANKS REPORTED HIGHER NET INCOME BANC ONE CORP'S NET INCREASED BY 91 WELLS FARGO & CO HAD AN 87 INCREASE AND MELLON BANK CORP'S EARNINGS ALMOST QUADRUPLED KEYCORP'S PROFIT INCREASED BY 10 THE STOCK MARKET'S REACTION TO THE NEWS WAS MIXED IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY CITICORP STOCK FELL 25 CENTS OR 06 TO CLOSE AT 3875 CHEMICAL DECLINED BY 50 CENTS OR 13 TO 37 BANKERS TRUST ROSE 50 CENTS OR 07 TO 70 AND BANC ONE FELL 50 CENTS OR 15 TO 33875 ALSO WELLS FARGO STOCK FELL BY 1 OR 07 TO 14525 FIRST INTERSTATE ROSE 375 CENTS OR 05 TO 77375 MELLON CLIMBED BY 25 CENTS OR 08 TO 58625 AND KEYCORP FELL 25 CENTS OR 08 TO 3225 CITICORP'S PROFIT DECLINE WAS PARTLY THE RESULT OF A FIRSTQUARTER ACCOUNTING CHANGE RELATED TO POSTEMPLOYMENT BENEFITS OPERATING PROFIT INCREASED TO 609 MILLION UP FROM 370 MILLION IN THE YEAREARLIER PERIOD PROFIT AT THE NATION'S LARGEST BANK WAS CONSISTENT WITH ANALYST EXPECTATIONS HOWEVER IT CAME IN SPITE OF THE DISMAL TRADING RESULTS OUR TRADING RESULTS FOR THE QUARTER WERE POOR CITICORP CHAIRMAN JOHN S REED TOLD STOCKHOLDERS AT THE COMPANY'S ANNUAL MEETING YESTERDAY HE SAID THE PROBLEMS CAME FROM TRADING LOSSES IN EUROPE AND DEVELOPING NATIONS MOSTLY DURING FEBRUARY AND MARCH AT A MEETING WITH REPORTERS THOMAS E JONES CITICORP'S PRINCIPAL FINANCIAL OFFICER SAID LOSSES CAME FROM PROPRIETARY TRADING RATHER THAN TRADES EXECUTED ON BEHALF OF CUSTOMERS AS PART OF THE BANK'S DERIVATIVE OPERATIONS WE HAD VIEWS ON INTEREST RATES WE HELD THEM AND WE WERE WRONG MR JONES SAID IN PARTIAL EXPLANATION OF THE LOSSES WHAT'S REMARKABLE SAID ARTHUR SOTER A MORGAN STANLEY & CO BANK ANALYST IS THAT THE COMPANY DID AS WELL AS IT DID IN THE FACE OF ANEMIC TRADING HE POINTED OUT THAT THE BANK'S REVENUE EXCLUDING TRADING OPERATIONS ROSE ABOUT 7 IN THE QUARTER FROM THE 1993 PERIOD THE BANK'S EARNINGS WERE HELPED BY A CONTINUED DECREASE IN CREDIT COSTS COMMERCIAL AND CONSUMER CREDIT COSTS HAVE DECLINED FOR NINE STRAIGHT QUARTERS TO 60 MILLION IN THE FIRST QUARTER FROM 380 MILLION IN THE 1993 FIRST QUARTER A DAY BEFORE YESTERDAY'S ANNUAL MEETING CITIBANK REINSTATED ITS DIVIDEND WHICH HAD BEEN ELIMINATED 2 1/2 YEARS AGO CHEMICAL'S TRADING REVENUE ALSO FELL BY 266 AS A RESULT OF WHAT ARE BELIEVED TO BE LOSSES IN EMERGING MARKETS AND WHAT THE BANK CALLED MIXED RESULTS FROM FOREIGNEXCHANGE AND DERIVATIVE PRODUCTS THAT WAS OFFSET BY A LOWER PROVISION FOR FUTURE LOAN LOSSES WHICH FELL 343 TO 205 MILLION THE RESULTS INCLUDED A RESTRUCTURING CHARGE OF 28 MILLION FOR THE CLOSING OF 50 NEW YORK BRANCHES AND A STAFF REDUCTION OF 650 EXCLUDING 98 MILLION IN 1993 ONETIME GAINS CHEMICAL'S EARNINGS ROSE 156 FROM 276 MILLION OR 95 CENTS A SHARE IF THE TRADINGREVENUE DROP IS EXCLUDED MR SOTER SAID THE NEW YORK BANK'S REVENUE GREW BY ALMOST 5 THE QUARTER WAS DISAPPOINTING BECAUSE OF THE TRADING NUMBERS AND OPERATINGEXPENSE NUMBERS THAT WERE ABOVE EXPECTATIONS HE SAID BUT IT WAS ENCOURAGING BECAUSE IT ESTABLISHED THE STRENGTH OF THE REVENUE BASE CHARLES SANFORD BANKERS TRUST'S CHAIRMAN CALLED THE QUARTER ONE OF THE MOST DIFFICULT TRADING ENVIRONMENTS IN A LONG TIME TRADING REVENUE DURING THE QUARTER WAS THE WEAKEST SINCE THE FOURTH QUARTER OF 1983 AND IT COMPARED WITH LAST YEAR'S AVERAGE PERQUARTER TRADING REVENUE OF 407 MILLION THE NEW YORK BANK WHICH TYPICALLY EARNS A SIGNIFICANT AMOUNT OF ITS EARNINGS FROM PROPRIETARY TRADING ATTRIBUTED THE DECLINE TO TRADING IN SOVEREIGN BONDS FOREIGN EXCHANGE AND EMERGINGCOUNTRY DEBT AND EQUITIES THE BANK SAID REVENUE FROM ITS DERIVATIVES BUSINESS SERVING CLIENTS WAS HIGHER THAN A YEAR EARLIER BUT THE FACT THAT THE COMPANY WAS ABLE TO STILL EARN 164 MILLION REFLECTS THE INCREASES IN OTHER PARTS OF ITS BUSINESS AND THE LOWER COMPENSATION TO TRADERS THAT GOES ALONG WITH THE WEAK TRADING RESULTS THE TRADING LINE WAS GHASTLY BUT OVERALL THE EARNINGS WERE BETTER THAN I EXPECTED SAID DAVID BERRY DIRECTOR OF RESEARCH AT KEEFE BRUYETTE & WOODS INC HE NOTED THAT EXCLUDING TRADING REVENUE WAS UP 25 BANC ONE COLUMBUS OHIO SAID AVERAGE COMMERCIAL LOAN BALANCES GREW AT A RATE OF 69 WHILE AVERAGE RETAIL LOAN BALANCES GREW AT 193 FROM THE 1993 FOURTH QUARTER INSTALLMENT LOANS WERE UP 27 AND CREDITCARD LOANS 36 ON THE DOWN SIDE THE NET INTEREST MARGIN THE DIFFERENCE BETWEEN THE BANK'S COST OF FUNDS AND THE RATE OF INTEREST IT EARNS FROM LOANS DECLINED TO 614 FROM 656 IN THE 1993 FIRST QUARTER ANALYSTS SAID BANC ONE PERFORMED AS EXPECTED WITH SEVERAL SAYING THEY WERE PARTICULARLY PLEASED BY THE HIGH LOAN RATE WELLS FARGO'S SHARP FIRSTQUARTER EARNINGS INCREASE WHICH EXCEEDED WALL STREET'S EXPECTATIONS PROVIDED MORE EVIDENCE THAT THE CALIFORNIA ECONOMY IS GETTING BACK ON ITS FEET THE SAN FRANCISCOBASED COMPANY ATTRIBUTED ITS RESULTS TO A LOWER LOANLOSS PROVISION RESULTING FROM CONTINUED IMPROVEMENT IN THE COMPANY'S LOAN PORTFOLIO WELLS'S PROVISION FOR LOAN LOSSES WAS 60 MILLION IN THE FIRST QUARTER COMPARED WITH 210 MILLION IN THE FIRST QUARTER OF 1993 NONINTEREST INCOME IN THE QUARTER ROSE 16 TO 300 MILLION FROM YEAREARLIER LEVELS A BIG PART OF THAT INCREASE STEMMED FROM HIGHER FEE INCOME NET INTEREST INCOME WAS DOWN 5 TO 642 MILLION FROM YEAREARLIER LEVELS AND WELLS'S NET INTEREST MARGIN IN THE QUARTER FELL TO 556 FROM 590 FIRST INTERSTATE SAID THAT EXCLUDING A YEAREARLIER SPECIAL GAIN AND ACCOUNTING CHANGES FIRSTQUARTER PROFIT ROSE 54 THE LOS ANGELESBASED COMPANY SAID AVERAGE LOANS AND LEASES INCREASED 8 TO 19 BILLION FROM THE YEAREARLIER QUARTER NONINTEREST INCOME WAS 2565 MILLION UP 41 FROM THE YEAREARLIER QUARTER MEANWHILE NONINTEREST EXPENSES FELL 31 TO 4929 MILLION IN THE FIRST QUARTER FIRST INTERSTATE INCREASED ITS QUARTERLY DIVIDEND TO 75 CENTS A SHARE FROM 50 CENTS PAYABLE MAY 31 TO STOCK OF RECORD MAY 9 PITTSBURGHBASED MELLON BOLSTERED BY 1993 ACQUISITIONS AND A DECLINE IN NET CREDIT LOSSES REPORTED ITS HIGHEST QUARTERLY NET INCOME EVER EXCLUDING QUARTERS AFFECTED BY CERTAIN NONRECURRING GAINS NET INTEREST REVENUE INCREASED 14 TO 362 MILLION A CHANGE ATTRIBUTED PRIMARILY TO MELLON'S 1993 ACQUISITIONS OF BOSTON CO AND AFCO CREDIT CORP A 48 INCREASE IN FEE REVENUE TO 343 MILLION WAS ATTRIBUTED TO THE ACQUISITION OF BOSTON MELLON EXPECTS TO COMPLETE ITS BIGGEST ACQUISITION THIS SUMMER WHEN IT EXPECTS TO ACQUIRE DREYFUS CORP CLEVELANDBASED KEYCORP SAID A 10 INCREASE IN LOANS HELPED TO OFFSET A NARROWING OF THE NET INTEREST MARGIN TO 503 FROM 54 THE BANK SAID CREDITQUALITY MEASURES ALSO IMPROVED NONPERFORMING ASSETS DECLINED BY 36 MILLION OR 7 FROM THE 1993 FOURTH QUARTER ANALYSTS SAID IT'S STILL TOO EARLY TO GAUGE THE EFFECTS OF KEYCORP'S MERGER WITH SOCIETY CORP COMPLETED ON MARCH 1 STEVEN LIPIN STEPHEN KREIDER YODER AND TIMOTHY AEPPEL CONTRIBUTED TO THIS ARTICLE 9404200067 940420 INTERNATIONAL BRIEF PECHINEY SA FIRM POSTS LOSS FOR 1993 LOW ALUMINUM PRICES CITED SAGGING UNDER ANOTHER YEAR OF LOW ALUMINUM PRICES FRENCH STATECONTROLLED ALUMINUM AND PACKAGING GROUP PECHINEY SA THE WORLD'S THIRDLARGEST ALUMINUM PRODUCER SWUNG TO A LOSS OF 980 MILLION FRANCS 1676 MILLION IN 1993 AFTER A 203 MILLIONFRANC PROFIT THE PREVIOUS YEAR PECHINEY CHAIRMAN JEAN GANDOIS ISSUED THE EARNINGS FIGURES WITH A DISCOURAGING OUTLOOK FOR 1994 PARTICULARLY FOR PACKAGING UNIT PECHINEY INTERNATIONAL HE SAID HIS GOAL IS TO HOLD EARNINGS PER SHARE AT 1993 LEVELS FOR PECHINEY INTERNATIONAL AND TO BRING PECHINEY BACK TO BREAKEVEN LEVEL 9404200066 940420 MARKETING BRIEF JOHN LABATT LTD BREWER SUES MILLER MOLSON OVER ICE BEER PATENT RIGHTS HEATING UP THE WAR BETWEEN THE ICE BEERS JOHN LABATT LTD SAID IT FILED SUIT AGAINST MILLER BREWING AND MOLSON BREWERIES CLAIMING PATENT INFRINGEMENT THE SUIT FILED IN FEDERAL COURT IN DETROIT CAME THE SAME DAY LABATT SAID IT RECEIVED A US PATENT FOR ITS ICEBREWING PROCESS THE COMPANIES ALREADY ARE IN A LEGAL TUSSLE OVER LABATT'S CLAIM THAT MILLER AND MOLSON VIOLATED ITS EXCLUSIVE TRADEMARK RIGHT TO USE THE PHRASES ICE BEER AND ICE BREWING LABATT NEW SUIT CLAIMS THAT ALTHOUGH THE COMPETITORS USE A DIFFERENT PROCESS THEIR BREWING METHOD IS SIMILAR ENOUGH TO CONSTITUTE PATENT INFRINGEMENT A LABATT SPOKESMAN SAID THE SUIT SEEKS UNSPECIFIED DAMAGES AND AN END TO THE SALE OF MOLSON'S ICE BEER IN THE US MOLSON AND MILLER OFFICIALS DISPUTED CLAIMS THAT THEY WERE INFRINGING ON LABATT'S PATENT MILLER BREWING A UNIT OF PHILIP MORRIS COS OWNS 20 OF TORONTOBASED MOLSON BREWERIES AND DISTRIBUTES MOLSON'S PRODUCTS IN THE US THE REST OF MOLSON BREWERIES IS OWNED EQUALLY BY MOLSON COS OF TORONTO AND FOSTER'S BREWING GROUP LTD OF AUSTRALIA 9404200065 940420 LETTERS TO THE EDITOR WHITING ALLOCATION IN A MARCH 31 EDITORIAL YOU SAID I HAD CALLED FOR HEARINGS ON LAST YEAR'S WHITING ALLOCATION DECISION BY THE NATIONAL MARINE FISHERIES SERVICE BUT THAT I WAS REBUFFED BY THE CONGRESSIONAL LEADERSHIP I CALLED FOR A CONGRESSIONAL HEARING THE HOUSE MERCHANT MARINE AND FISHERIES COMMITTEE CAME TO OREGON AND HELD A HEARING LAST AUGUST THE ALLOCATION DECISION AND THE OVERRIDING MAGNUSON ACT WERE DISCUSSED BUT MUCH OF THE ISSUE WAS RESOLVED BEFORE THE HEARING ALL OF THE STAKEHOLDERS INCLUDING THE ON AND OFFSHORE PROCESSORS MET WITH NMFS IN JULY AND WORKED OUT AN ALLOCATION PLAN THAT WORKS FOR ALL OF THEM 9404200064 940420 SMALL STOCK FOCUS PRICES SLUMP ON INTEREST RATE WORRIES LED BY TECHNOLOGY HEALTH CARE ISSUES BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK WIDESPREAD WEAKNESS AND CONTINUING CONCERN ABOUT INTERESTRATE INCREASES SENT SMALLCOMPANY STOCK PRICES TO THEIR LOWEST LEVELS OF THE YEAR THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION ISSUES TUMBLED 278 OR 112 TO 24562 BUT ABOVE ITS WORST LEVEL OF THE DAY THE BAROMETER LAST FINISHED THAT LOW ON SEPT 21 1993 NASDAQ STOCK MARKET ISSUES WERE UNDER PRESSURE ACROSS THE BOARD WITH TECHNOLOGY AND HEALTHCARE ISSUES LEADING THE WAY DOWN THE NASDAQ COMPOSITE INDEX LOST 760 OR 105 TO 71285 ITS WEAKEST CLOSE SINCE AUG 3 1993 THE MEASUREMENT FELL ABOUT 11 POINTS IN INTRADAY TRADING MARKET WATCHERS SAID BOTH THE RUSSELL AND THE NASDAQ COMPOSITE REGAINED SOME LOST GROUND AS BONDS STRENGTHENED ALTHOUGH RATE JITTERS STILL PLAGUE THE STOCK MARKET BONDS BOUNCED BACK FOLLOWING MONDAY'S DIVE ON NEWS THE FEDERAL RESERVE HAD TIGHTENED MONETARY POLICY FOR THE THIRD TIME THIS YEAR THE 30YEAR TREASURY BOND ROSE MORE THAN 1/2 POINT YESTERDAY DEPRESSING ITS YIELD TO 737 DECLINERS TOPPED GAINERS 2036 TO 1179 ON NASDAQ NATIONAL MARKET VOLUME OF 291134700 SHARES AND TOTAL VOLUME OF 328193000 ON MONDAY NATIONAL MARKET VOLUME WAS 220246900 SHARES AND OVERALL TURNOVER REGISTERED 246576000 ALTHOUGH MICROSOFT JUMPED 5 1/8 TO 88 1/8 ON IMPROVED EARNINGS INTEL FELL 1 TO 57 1/2 AS INVESTORS IGNORED ITS EARNINGS AND FOCUSED INSTEAD ON CONCERNS ABOUT PROFIT MARGINS SMALLER CHIP MAKERS WERE WEAK ADVANCED LOGIC RESEARCH IRVINE CALIF FELL 1/8 TO 6 1/8 AND NOVELLUS SYSTEMS SAN JOSE CALIF DROPPED 3 3/4 TO 27 1/4 S3 TUMBLED 4 1/8 OR 36 TO 7 1/2 THE SANTA CLARA CALIF ACCELERATION TECHNOLOGY FIRM'S SECONDQUARTER EARNINGS CAME IN AT 20 CENTS A SHARE SHORT OF THE 22 CENTS EXPECTED BY ANALYSTS A CUT IN EARNINGS EXPECTATIONS FROM DONALDSON LUFKIN & JENRETTE SENT SHARES OF HUNTCO 5 3/4 LOWER TO 20 JOHN TUMAZOS AN ANALYST AT THE BROKERAGE FIRM REPORTEDLY LOWERED HIS ESTIMATES ON THE CHESTERFIELD MO STEEL PROCESSOR FOR THE QUARTER AND YEAR ENDING APRIL 30 PSC INC A WEBSTER NY ELECTRONIC EQUIPMENT MAKER CLIMBED 2 1/2 TO 10 THE COMPANY SAID FIRSTQUARTER NET ROSE TO 27 CENTS A SHARE FROM EIGHT CENTS A YEAR EARLIER IN ADDITION WHEAT FIRST BUTCHER & SINGER LIFTED ITS RATING ON PSC TO BUY ON WEAKNESS FROM HOLD AND RAISED 1994 AND 1995 EARNINGS ESTIMATES SANMINA TACKED ON 1 3/4 TO 19 1/2 THE SAN JOSE CALIF CIRCUIT BOARDS MAKER REPORTED FISCAL SECONDQUARTER EARNINGS OF 32 CENTS A SHARE ON MORE SHARES OUTSTANDING UP FROM FOUR CENTS A YEAR EARLIER IN FOCUS SYSTEMS A TUALATIN ORE DEVELOPER OF INFORMATION DISPLAY PRODUCTS ROSE 1 5/8 TO 13 THE COMPANY'S FIRSTQUARTER EARNINGS SURGED TO 28 CENTS A SHARE FROM NINE CENTS A YEAR EARLIER RIGHT MANAGEMENT CONSULTANTS PHILADELPHIA GAINED 2 1/4 TO 19 3/4 THE PROVIDER OF CAREER MANAGEMENT AND HUMAN RESOURCE CONSULTING SERVICES POSTED FIRSTQUARTER EARNINGS OF 49 CENTS A SHARE UP FROM 17 CENTS A YEAR EARLIER SUMMIT CARE CORP ADDED 1 1/4 TO 20 THE BURBANK CALIF PROVIDER OF HEALTHCARE SERVICES SAID ITS THIRDQUARTER NET INCOME ROSE TO 30 CENTS A SHARE FROM 25 CENTS A YEAR EARLIER SHARES OF HEALTH MAINTENANCE ORGANIZATIONS FELL AFTER SENATE MAJORITY LEADER GEORGE MITCHELL DISCUSSED MEASURES TO CURTAIL HEALTHCARE SPENDING IN AN APPEARANCE BEFORE THE INDEPENDENT INSURANCE AGENTS OF AMERICA MAXICARE HEALTH PLANS EASED 5/8 TO 13 3/4 AND SIERRA HEALTH SERVICES LOST 1 1/4 TO 26 3/8 ON THE AMERICAN STOCK EXCHANGE ALTHOUGH ANALYSTS HAD EXPECTED EARNINGS CONCERNS TO SUPPLANT INTEREST RATES AS THE DRIVING FORCE BEHIND EQUITIES MANY SAID THEY ARE STILL WAITING I'M A LITTLE CONCERNED ABOUT THE ATTITUDE TOWARD EARNINGS SAID BRUCE BITTLES A MARKET STRATEGIST AT JC BRADFORD THE BULLS SAID EARNINGS WERE COMING AND THEY WOULD TAKE OVER FROM THE BONDS BUT THAT DOESN'T APPEAR TO BE THE CASE NOW I DON'T KNOW WHAT THE BULLS ARE GOING TO DRAW UPON WITH RATES SO HIGH SO FAR HE SAID MOST COMPANIES THAT REPORT GOOD EARNINGS WATCH THEIR STOCK PRICES GO DOWN WHILE COMPANIES WITH LOWERTHANEXPECTED EARNINGS SEE THEIR STOCKS GO DOWN BIG LANCE ZIPPER MANAGER OF NASDAQ TRADING AT KIDDER PEABODY SAID PEOPLE ARE LOOKING AT EARNINGS BUT THERE'S BEEN A LOT OF DAMAGE DONE TO THE PSYCHE OF THE MARKET AND THAT'S GOING TO TAKE TIME TO GO AWAY 9404200063 940406 TEXAS JOURNAL THE BUSINESS OF BASEBALL BY JEFF OPDYKE THE BOYS OF SUMMER ARE BACK AND FOR THE FIRST TIME IN 27 SEASONS NOLAN RYAN'S NAME ISN'T PENCILED IN AS PART OF ANY TEAM'S PITCHING ROTATION BUT THE MAN WHO TOSSED MORE NOHITTERS SEVEN STRUCK OUT MORE BATTERS 5714 AND PLAYED IN THE BIG LEAGUES LONGER THAN ANYONE ELSE ISN'T THROUGH PITCHING IT'S JUST THAT INSTEAD OF FASTBALLS MR RYAN THESE DAYS IS PITCHING BOOTS AND BLUE JEANS CEREAL AND SHOES LONGDISTANCE PHONE SERVICE AND LONGDISTANCE CARGO SERVICE THE BUSINESS OF NOLAN RYAN ALSO INCLUDES SEVERAL CATTLE RANCHES AS WELL AS THE 49 MILLIONINASSETS BANK HE OWNS IN ALVIN HIS HOMETOWN MR RYAN BOUGHT DANBURY STATE BANK IN 1990 AND RENAMED IT THE EXPRESS BANK HE PICKED UP THE ALVIN BRANCH OF MERCHANTS BANKHOUSTON A YEAR LATER AND MERGED IT INTO THE EXPRESS BANK HE OF COURSE IS CHAIRMAN WHAT HE EARNS FROM ALL THESE ENDEAVORS IS AS TOUGH TO FIND OUT AS A RYAN FASTBALL IS TO HIT BUT SPORTSMARKETING ANALYSTS ESTIMATE THAT MR RYAN'S ENDORSEMENTS ALONE BRING IN 3 MILLION ANNUALLY AND WHILE HE CERTAINLY DOESN'T COMMAND THE KIND OF MONEY GARNERED BY SOME OF BASKETBALL'S ELITE MR RYAN REMAINS BASEBALL'S MOST POPULAR MODERNAGE PLAYER BESTING SUCH STARS AS BO JACKSON BARRY BONDS AND BOBBY BONILLA ACCORDING TO SPORTS MARKETING GROUP/DALLAS NOLAN RYAN HAS A NYE RATING OF 46 WHICH MEASURES POPULARITY AND PERSONAL TRAITS SUCH AS CREDIBILITY THAT PUTS MR RYAN JUST BEHIND SPORTS SUPERSTARS SUCH AS JOE MONTANA MARY LOU RETTON AND DOROTHY HAMILL AND AHEAD OF STARS SUCH AS MICHAEL JORDAN AND SHAQUILLE O'NEAL THAT HELPS EXPLAIN WHY SOUTHWEST AIRLINES SIGNED MR RYAN TO A 10YEAR CONTRACT IN TRADE PUBLICATIONS HE HAWKS THE DALLAS AIR CARRIER'S CARGO SERVICES IT ALSO EXPLAINS WHY EXECUTIVES AT THE ATHLETICSHOE GIANT NIKE INC SAYS THE 47YEAROLD MR RYAN WILL BE PART OF OUR ADVERTISING LANDSCAPE WELL INTO THE NEXT CENTURY MR RYAN WHO HAS BECOME A NATIONAL SYMBOL OF MIDDLEAGED FITNESS IS WORKING WITH AMERICAN HOME PRODUCTS CORP'S ADVIL BRAND TO PRODUCE THE NOLAN RYAN FITNESS GUIDE A FREE PUBLICATION AIMED AT FITNESS FOR AMERICA'S OVER40 POPULATION ADVIL PLANS TO INTRODUCE THE GUIDE IN MAY FOR NATIONAL FITNESS MONTH MR RYAN'S AFFECTION FOR RANCHING EXPLAINS HIS AGREEMENT TO ENDORSE CATTLE PRODUCTS FOR HIPRO ANIMAL HEALTH A DIVISION OF AMARILLO'S FRIONA INDUSTRIES LP EVERYBODY KNOWS WHO HE IS AND OUR CUSTOMERS KNOW THAT HE'S NOT JUST A PITCHER BUT A CATTLEMAN TOO SAYS BILL STOVELL MANAGER OF THE HIPRO DIVISION AS WITH EVERY PRODUCT HE ENDORSES MR RYAN IS A BIG HIPRO CUSTOMER AS THE FIRST MAJOR LEAGUE BASEBALL SEASON SINCE 1967 GETS UNDER WAY WITHOUT NOLAN RYAN ON THE PITCHING MOUND HERE'S A BREAKDOWN OF NOLAN INC SEE RELATED LETTER TEXAS JOURNAL LETTERS TO THE EDITOR MISSED PITCH WSJ APRIL 20 1994 9404060056 YY94 MM04 9404200062 940420 REVIEW & OUTLOOK EDITORIAL MASTERS OF THE GAME THE CLINTON ADMINISTRATION HAS BEEN ARGUING THAT IT'S NECESSARY TO BASH JAPAN TO GET THE ATTENTION OF THE WORLD'S MOST POWERFUL BUREAUCRATS WHO RUN EVERYTHING THE FRENCH MUST BE INSULTED AT THE HIGHEST LEVELS OF THE GAME WE DOUBT ANYONE CAN OUTBUREAUCRAT THE FRENCH FRANCE'S INDUSTRY MINISTER GERARD LONGUET A GRANDMASTER WAS AT WORK IN MARRAKESH LAST WEEK FIRST HE PREEMPTED HIS EU PARTNERS AND ARRANGED A PRIVATE MEETING WITH US TRADE REPRESENTATIVE MICKEY KANTOR THEN HE INSISTED THAT EU NATIONS SIGN THE GATT TREATY AS SEPARATE NATIONS RATHER THAN AS A BLOC HAVING PROMPTED A EU CRISIS MEETING HE FLEW BACK TO FRANCE WHEN HE RETURNED TO MARRAKESH LATE FOR THE MEETING THE REST OF HIS 11 EU MINISTERS REPORTEDLY WALKED OUT ON HIM TO SIGNAL THEIR ANGER WHAT WAS ALL THAT MANEUVERING ABOUT IT HAS TO DO WITH THE EUROPE OF THE 21ST CENTURY AND FRANCE'S ROLE THE EUROPEAN UNION IS ENTERING A PHASE IN WHICH IT WILL FIND ITSELF LOOKING NORTHWARD AND EASTWARD IF AUSTRIA AND THE SCANDINAVIAN NATIONS JOIN THEN THE EU WILL BE AUGMENTED BY PEOPLES WHOSE ORIENTATION IS MORE GERMANIC THAN FRENCH BUT IF THEY DECIDE NOT TO JOIN THEN THE MAASTRICHT MODEL WILL SUFFER A SERIOUS MORAL BLOW THE EFFECTS OF WHICH ARE GENERALLY UNDERESTIMATED EITHER WAY THE FRENCH MODEL OF A CENTRALIZED AND PROTECTED EUROPE IS WEAKENED ALSO FRANCE ISN'T EAGER TO ADMIT THE EASTWARD NATIONS TO THE COUNTRY CLUB OF EUROPE EVEN WITHOUT EU MEMBERSHIP FOR THESE COUNTRIES INVESTMENT FLOWS ARE HEADED IN THEIR DIRECTION EASTERN EUROPE NOW HAS A 5 BILLION TRADE DEFICIT WITH WESTERN EUROPE IN PART THAT IS A PRODUCT OF THE TRADE BARRIERS THE EUROPEAN UNION HAS ERECTED BUT IN LARGE MEASURE IT IS A PRODUCT OF CAPITAL FLOWS THE EAST'S DYNAMISM PULLS ATTENTION AWAY FROM BRUSSELS MAKING THE LANGUAGE OF THE DELORS ERA BEGIN TO SEEM DATED AND MUSTY FACED WITH THE THREAT OF DIMINISHING INFLUENCE THE FRENCH POLICY APPARATUS LOOKS FOR WAYS TO RESPOND THUS FRENCH OFFICIALS COUNT THEIR NATION'S PRICKLY BEHAVIOR IN THE FINAL DAYS OF THE GATT NEGOTIATIONS AS A VICTORY INDEED IF THAT SORT OF BEHAVIOR IS SEEN AS THE WAY TO PROTECT NATIONAL PRESTIGE THEN MR LONGUET'S MARRAKESH PERFORMANCE MAKES SENSE THOUGH GAINING NOTHING THE ATTENTIONGRABBING STUNT PUT FRANCE ONCE AGAIN AT THE CENTER OF EUROPEAN TRADE POLITICS A NATION THAT WANTED TO CREATE A HIGHLY CENTRALIZED EUROPE WOULD FOCUS ITS EFFORTS ON TRADE AS FINANCIAL TIMES WRITER MARTIN WOLF EXPLAINS IN A SUPERB BOOKLET THE RESISTIBLE APPEAL OF FORTRESS EUROPE SUPPRESSION OF COMPETITION HAS ALWAYS BEEN THE HANDMAIDEN OF EUROPEAN CENTRALIZATION EVEN THE SINGLE MARKET PROJECT HAD AS A PREMISE THAT NATIONS WHICH TRADED FREELY SHOULD HAVE EQUAL REGULATORY BURDENS WITH THAT PRECEDENT SET IT WAS EASY FOR PROTECTIONISTS TO ARGUE THAT EUROPE SHOULDN'T TRADE WITH NATIONS THAT HAVE LOWER REGULATORY AND WAGE COSTS THAT IS MOST OF THE WORLD JACQUES DELORS SAID RECENTLY THAT HE FEELS NO GUILT ABOUT THE EU'S TRADE BARRIERS TO THE EAST ALL THIS IS TO SAY THAT THE RECENT GATT TRIUMPH NOTWITHSTANDING TRADE ISSUES COULD STILL BEDEVIL EUROPEAN POLITICS WE'LL BE WATCHING WHETHER THE GAMESMEN OF FRANCE CONTINUE TO PURSUE THEIR PERCEIVED INTERESTS BY MAKING THEMSELVES DIFFICULT 9404200061 940420 WHAT'S NEWS BUSINESS AND FINANCE CHRYSLER POSTED A RECORD PROFIT OF 938 MILLION BUT ITS FAILURE TO PRODUCE EVEN HIGHER RESULTS IN THE FIRST QUARTER AND FEARS THAT RISING INTEREST RATES COULD CHOKE OFF THE ECONOMIC RECOVERY SENT CAR MAKERS' STOCKS DOWN CHRYSLER'S REVENUE ROSE 21 TO A RECORD 132 BILLION JAPANESE CAR MAKERS ARE BEGINNING TO GAIN MARKET SHARE IN THE US AFTER SLIPPING FROM THEIR 1991 PEAK CITICORP AND BANKERS TRUST NEW YORK REPORTED DRASTIC DROPS IN TRADING REVENUE FOR THE FIRST QUARTER REFLECTING THE TOLL RISING INTEREST RATES TOOK ON BOND AND CURRENCY TRADING OPERATIONS BUT BOTH POSTED RESPECTABLE RESULTS THE SUPREME COURT SAID INVESTORS CAN'T FILE SUITS CHARGING THAT SOMEONE AIDED OR ABETTED DECEPTIVE ACTS INVOLVING STOCK OR BOND DEALS THE US TRADE DEFICIT WIDENED SHARPLY AND UNEXPECTEDLY IN FEBRUARY PROMPTING ANALYSTS TO LOWER ESTIMATES FOR FIRSTQUARTER GROWTH MANY KEMPER SHAREHOLDERS HAVE SAID THAT THEY ARE INCLINED TO VOTE IN FAVOR OF GE CAPITAL'S NOMINEES FOR KEMPER'S BOARD OF DIRECTORS DESPITE KEMPER'S BID TO STAY INDEPENDENT IN THE WAKE OF GE'S 55ASHARE OFFER STOCK PRICES SWUNG WILDLY WITH THE DOW JONES INDUSTRIALS FLUCTUATING OVER A RANGE OF NEARLY 60 POINTS AND THEN SETTLING AT 361982 DOWN 060 TROUBLES IN THE MORTGAGE DERIVATIVES MARKET CONTINUE TO CLAIM CASUALTIES AS INVESTORS AND DEALERS PUSH PRICES DOWN FURTHER CARGILL'S 420 MILLION MINNETONKA HEDGE FUND IS THE MOST PROMINENT OF THE LATEST VICTIMS A JUDGE APPOINTED TO OVERSEE BREASTIMPLANT LITIGATION SET DEADLINES FOR A MILLION OR MORE WOMEN WITH IMPLANTS TO REACH DECISIONS ON WHETHER THEY WILL JOIN IN A GLOBAL SETTLEMENT THE TEAMSTERS ARE QUICKLY RUNNING OUT OF MONEY A CRISIS THAT COULD WEAKEN THE ORGANIZATION'S POSITION IN ITS STRIKE AGAINST 20 TRUCK COMPANIES THE SEC VOTED TO REQUIRE THE SPONSORS OF WRAP ACCOUNTS TO GIVE INVESTORS MOREDETAILED INFORMATION ABOUT THEIR COSTS SERVICES AND PERFORMANCE PHILIP MORRIS REPORTED BETTERTHANEXPECTED FIRSTQUARTER RESULTS BECAUSE OF STRONG INTERNATIONAL TOBACCO PROFITS AND SOLID VOLUME GAINS FOR MARLBORO CIGARETTES IN THE US MCDONNELL DOUGLAS'S PROPOSED SETTLEMENT WITH THE GOVERNMENT ON THE PURCHASE OF C17 AIRCRAFT IS INADEQUATE AND SHOULD BE REJECTED BY CONGRESS THE GENERAL ACCOUNTING OFFICE SAID THE STUDENT LOAN MARKETING ASSOCIATION IS CONSIDERING MAKING A SECONDARY MARKET FOR JOBTRAINING LOANS PAINEWEBBER SAID ITS FIRSTQUARTER PROFIT FELL 21 BECOMING THE FIRST MAJOR WALL STREET FIRM THIS QUARTER TO REPORT LOWER YEARTOYEAR EARNINGS SCOTT PAPER NAMED AN OUTSIDER AS CHAIRMAN AND CHIEF EXECUTIVE ENDING A NEARLY FIVEMONTH SEARCH THE APPOINTMENT MARKS THE FIRST TIME THAT SCOTT HAS NAMED AN OUTSIDER TO THE TOP POST IN ITS 115YEAR HISTORY MARTIN DAVIS PLANS TO WORK WITH STRUGGLING COMPANIES AFTER HE STEPS DOWN FROM PARAMOUNT NEXT MONTH DAVIS WHOSE AIM WILL BE TO RESTORE SHAREHOLDER VALUE SAID SEVERAL INVESTORS INCLUDING FOREIGN BANKS HAVE EXPRESSED INTEREST IN BACKING HIM HE WILL ALSO PUT UP HIS OWN MONEY PACIFIC TELESIS REPORTED A FIRSTQUARTER PROFIT COMPARED WITH A YEAREARLIER LOSS WHICH INCLUDED RESTRUCTURING AND ACCOUNTING CHARGES GTE'S QUARTERLY PROFIT ROSE MORE THAN 10 BONDS LEHMAN BROTHERS TREASURY INDEX 506946 UP 2623 COMMODITIES OIL 1649 A BARREL OFF 16 CENTS DOW JONES FUTURES INDEX 13588 OFF 089 SPOT INDEX 13045 OFF 057 DOLLAR 10305 YEN OFF 013 16997 MARKS OFF 00093 9404200060 940420 BUSINESS BRIEF CORESTATES FINANCIAL CORP ACQUISITION JUMP IN LOANS BOOSTED 1STQUARTER NET 48 CORESTATES FINANCIAL CORP SAID ITS ACQUISITION OF CONSTELLATION BANCORP AS WELL AS A PICKUP IN LOAN VOLUME IN MARCH CONTRIBUTED TO A 48 INCREASE IN FIRSTQUARTER NET INCOME THE PHILADELPHIA BANKHOLDING COMPANY POSTED NET OF 919 MILLION OR 72 CENTS A SHARE COMPARED WITH 62 MILLION OR 48 CENTS A SHARE A YEAR EARLIER THE ACQUISITION OF CONSTELLATION BASED IN ELIZABETH NJ WAS COMPLETED ON MARCH 16 BECAUSE THE MOVE WAS ACCOUNTED FOR AS A POOLING OF INTERESTS LAST YEAR'S FIRSTQUARTER RESULTS HAVE BEEN RESTATED TO REFLECT THE PERFORMANCE OF BOTH COMPANIES THE 1994 FIRST QUARTER WHICH ALSO INCLUDES BOTH COMPANIES INCLUDES A CHARGE OF 13 MILLION OR 10 CENTS A SHARE FOR CHANGES IN ACCOUNTING FOR POSTEMPLOYMENT BENEFITS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING CORESTATES SHARES FELL 25 CENTS TO 26375 9404200059 940420 LETTERS TO THE EDITOR HUMAN GUINEA PIGS DESERVE JUSTICE IN HIS APRIL 13 EDITORIALPAGE ARTICLE THE RADIATION SCARE'S REAL FALLOUT MAX BOOT CRITICIZES LAWYERS FOR REPRESENTING PEOPLE WHO HAVE BEEN THE VICTIMS OF RADIATION EXPERIMENTS MR BOOT PAINTS WITH A BROAD BRUSH TO THE EFFECT THAT THE LAWSUITS AND NOT THE EXPERIMENTS THEMSELVES ARE THE PROBLEM WE ARE AMONG THOSE HE CRITICIZES FOR OUR LAW FIRMS REPRESENT PLAINTIFFS IN THE TWO CLASSACTION SUITS THAT HAVE BEEN FILED IN THE AFTERMATH OF ENERGY SECRETARY HAZEL O'LEARY'S DISCLOSURES ABOUT GOVERNMENT AND UNIVERSITYSPONSORED RADIATION EXPERIMENTATION ON HUMANS THE FIRST OF THOSE LAWSUITS INVOLVES MORE THAN 800 PREGNANT WOMEN WHO WERE GIVEN RADIOACTIVE IRON IN SOCALLED COCKTAILS WHILE ATTENDING VANDERBILT UNIVERSITY'S PRENATAL CLINIC IN THE LATE 1940S THE UNIVERSITY STATES THAT THE PURPOSE OF THE EXPERIMENT WAS TO MEASURE THE ABSORPTION OF IRON BY WOMEN DURING PREGNANCY HOWEVER NONE OF THE WOMEN WERE ADVISED THAT THEY WERE PARTICIPATING IN AN EXPERIMENT NOR THAT THEY WERE RECEIVING THE RADIATION LACED IRON AS PART OF AN EXPERIMENT INDEED THE RESEARCHERS ATTEMPTED TO KEEP THE INFORMATION ABOUT THE RADIATION EXPERIMENTS EVEN FROM THE PHYSICIANS TREATING THE PREGNANT WOMEN DURING THE 1960S A DIFFERENT SET OF VANDERBILT'S OWN RESEARCHERS ATTEMPTED TO LOCATE THE WOMEN IN THE STUDY AND TO RECORD THE HEALTH OF THEIR CHILDREN REPORTING IN A MEDICAL JOURNAL THE RESEARCHERS LEARNED THAT FOUR CHILDREN OF THE RADIATED MOTHERS HAD DIED OF CANCER THERE WERE NO CHILD DEATHS IN A CONTROL GROUP THAT THE RESEARCHERS HAD CREATED DISCOUNTING ONE OF THE FOUR DEATHS BECAUSE FATAL CANCERS APPEARED IN TWO OF HIS SIBLINGS THE RESEARCHERS NEVERTHELESS DETERMINED THAT THE RESULTS SUGGESTED A CAUSE AND EFFECT RELATIONSHIP BETWEEN EXPOSURE TO RADIOACTIVE IRON AND THE THREE CHILDREN THE DAUGHTER OF OUR CLIENT EMMA CRAFT DIED OF CANCER AT THE AGE OF 11 MS CRAFT LEARNED LAST DECEMBER OF HER INVOLVEMENT IN THE STUDY IN THE WAKE OF SECRETARY O'LEARY'S DISCLOSURES AND HAS VOWED TO FIGHT THE CASE AS A FINAL TRIBUTE TO HER DAUGHTER TO ENSURE THAT NONCONSENSUAL HUMAN EXPERIMENTATION NEVER AGAIN OCCURS OUR LAWSUIT WILL MAKE VANDERBILT ANSWER THE CHARGE THAT ITS RESEARCHERS SHOULD NOT HAVE FED RADIOACTIVE IRON TO PREGNANT WOMEN WITHOUT THEIR CONSENT OUR SUIT WILL FORCE VANDERBILT TO MAKE AVAILABLE THE EXPERIMENT RECORDS OF ALL THOSE PEOPLE WHO WERE GIVEN RADIATION WITHOUT THEIR KNOWLEDGE OR CONSENT AND IF SUCCESSFUL WILL FORCE VANDERBILT TO PROVIDE MEDICAL CARE TO ALL THOSE PEOPLE WHO SUFFER PHYSICAL AILMENTS CAUSED BY THE EXPERIMENT THIS CASE IS CLEARLY NOT BASELESS AS MR BOOT SUGGESTS BUT ON SOUND MORAL AND FACTUAL FOOTING VANDERBILT'S OWN RESEARCHERS HAVE PROVIDED ALL THE FACTS UPON WHICH WE RELY THE SAME IS TRUE IN THE CINCINNATI CASE WHERE THE PENTAGON PAID MORE THAN 650000 TO FUND EXPERIMENTS IN WHICH 88 PEOPLE WERE INTENTIONALLY EXPOSED TO LEVELS OF TOTAL BODY RADIATION APPROXIMATING THOSE THAT SOLDIERS MIGHT ENCOUNTER DURING A NUCLEAR WAR DR EUGENE SAENGER THE ARCHITECT OF THE PROGRAM DESCRIBED IN HIS WRITINGS THE PURPOSE OF THE EXPERIMENTS AS BEING TO GAUGE THE PHYSIOLOGICAL AND PSYCHOLOGICAL EFFECTS OF HIGH LEVELS OF TOTAL BODY RADIATION ON HUMANS IT WILL THEN BE POSSIBLE HE WROTE TO UNDERSTAND BETTER THE INFLUENCE OF RADIATION ON COMBAT EFFECTIVENESS SO CAUGHT UP IN HIS CRITICISMS OF THE VICTIMS OF THE EXPERIMENTS AND THEIR LAWYERS MR BOOT NEVER QUESTIONS DR SAENGER'S RECENT CONGRESSIONAL TESTIMONY THAT TREATMENT WAS GIVEN ONLY IF BENEFIT TO THE PATIENT WAS ANTICIPATED NOR DOES HE QUESTION DR SAENGER'S ASSERTION THAT ALL SUBJECTS PROVIDED INFORMED CONSENT MR BOOT LIKELY NEVER READ DR SAENGER'S STUDIES IN WHICH HE SAYS THAT RESEARCHERS WERE NOT TO DISCUSS THE POSSIBLE SIDE EFFECTS OF THE RADIATION WITH THE SUBJECTS BECAUSE TO DO SO MIGHT INFLUENCE THE SUBJECTS' RESPONSE HOW ONE MIGHT ASK CAN ONE GIVE INFORMED CONSENT IF INFORMATION REGARDING ALL SIDE EFFECTS IS TO BE WITHHELD NOR CAN DR SAENGER TRUTHFULLY DENY THAT NONE OF THE SUBJECTS DURING THE FIRST FIVE YEARS OF THE EXPERIMENTS EVER EVEN SIGNED A CONSENT FORM FINALLY DR SAENGER CANNOT DENY THAT THE MAJORITY OF THOSE SELECTED TO BE SUBJECTS WERE UNEDUCATED HAD A MEAN IQ OF 87 AND ACCORDING TO HIS 1969 STUDY WERE OVERWHELMINGLY NEGRO 9404200058 940420 INTERNATIONAL BRIEF FRIED KRUPP AG HOESCHKRUPP FIRM POSTS WIDER '93 LOSS ON STEEL DIVISION'S WEAKNESS HEAVY LOSSES IN ITS STEEL DIVISION PUSHED FRIED KRUPP AG HOESCHKRUPP DEEPER INTO THE RED IN 1993 KRUPP POSTED A GROUP NET LOSS OF 590 MILLION MARKS 3454 MILLION FOR 1993 COMPARED WITH A LOSS OF 250 MILLION MARKS FOR 1992 THE GERMAN COMPANY WAS CREATED WITH THE MERGER OF FRIED KRUPP AG AND HOESCH AG IN DECEMBER 1992 THE WIDER LOSSES STEMMED FROM THE COMPANY'S STEEL DIVISION WHICH ALONE POSTED A LOSS OF 780 MILLION MARKS KRUPP'S FACTORY BUILDING AUTOMOTIVE TRADE AND MANUFACTURING DIVISIONS ALL POSTED POSITIVE RESULTS ALTHOUGH KRUPP POSTED HEAVY LOSSES FOR THE SECOND YEAR IN A ROW KRUPP CHAIRMAN GERHARD CROMME PREDICTED THE COMPANY WOULD BE ABLE TO BREAK EVEN IN 1994 IN FRANKFURT YESTERDAY KRUPPHOESCH SHARES SANK EIGHT MARKS TO 223 MARKS 9404200057 940420 BUSINESS BRIEF REEBOK INTERNATIONAL LTD FIRSTQUARTER NET FELL 29 COMPANY'S SALES ROSE 39 REEBOK SAID NET INCOME FELL TO 658 MILLION OR 77 CENTS A SHARE FROM 678 MILLION OR 74 CENTS A SHARE A YEAR EARLIER PERSHARE EARNINGS ROSE BECAUSE OF FEWER SHARES OUTSTANDING UNDER A CONTINUING SHAREREPURCHASE PLAN REEBOK REPURCHASED 12 MILLION SHARES IN THE QUARTER AND REDUCED THE NUMBER OF AVERAGE SHARES OUTSTANDING TO 853 MILLION FROM 911 MILLION THE YEAR BEFORE SALES ROSE TO 8574 MILLION FROM 8252 MILLION REEBOKBRAND SALES ROSE 33 TO 744 MILLION US FOOTWEAR SHOES OF THE REEBOK BRAND ROSE 28 TO 368 MILLION FOLLOWING TWO CONSECUTIVE QUARTERS OF 20 DECLINES PAUL FIREMAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE US GAIN WAS PARTICULARLY ENCOURAGING HE SAID OPEN ORDERS FOR REEBOK FOOTWEAR ROSE 107 AT THE END OF THE QUARTER MR FIREMAN SAID INTERNATIONAL SALES OF REEBOK BRAND SHOES AND CLOTHING ROSE 31 DESPITE A CURRENCY IMPACT 9404200056 940420 LETTERS TO THE EDITOR LIMIT DOUBLE RECOVERY BY NEGLIGENCE VICTIMS YOUR MARCH 4 ARTICLE ONCE HURT PEOPLE CAN BE COMPENSATED TWICE UNDER DOUBLERECOVERY RULES IS A GROSS MISSTATEMENT OF THE STATUS OF THE LAW IN THE STATE OF WASHINGTON WHICH WAS CHARACTERIZED AS ALWAYS ALLOWING DOUBLE RECOVERY TO MEDICAL NEGLIGENCE VICTIMS SINCE 1976 ANY PARTY INCLUDING THE DEFENDANTS MAY PRESENT EVIDENCE THAT THE PATIENT HAS ALREADY BEEN COMPENSATED FOR THE INJURY FROM ANY SOURCE EXCEPT FROM THE PATIENT OR HIS FAMILY'S OWN ASSETS OR INSURANCE PURCHASED WITH SUCH ASSETS IN THE EVENT SUCH EVIDENCE IS ADMITTED THE PLAINTIFF MAY PRESENT EVIDENCE OF AN OBLIGATION TO REPAY THE RECEIVED COMPENSATION EVEN IF THE MEDICAL NEGLIGENCE DEFENDANT DOES NOT PURSUE THE ISSUE IN OPEN COURT THE TORT VICTIM'S OWN INSURANCE COMPANY PRECLUDES ANY NOTIONS OF A DOUBLE RECOVERY VIRTUALLY EVERY MEDICAL NEGLIGENCE VICTIM'S OWN INSURANCE POLICY OR HMO AGREEMENT CONTAINS A SUBROGATION PROVISION THAT REQUIRES A REPAYMENT OF MEDICAL EXPENSES PAID ON THEIR BEHALF IN THE EVENT OF ANY RECOVERY FURTHER THE ADVENT OF ERISA PLANS HAS STRENGTHENED THE RIGHTS OF HEALTH CARE PAYERS TO RECOUP FUNDS IN THE EVENT OF A SETTLEMENT OR VERDICT FOR THE VICTIM CERTAIN ERISA PLANS EVEN PROVIDE FOR FIRST DOLLAR REPAYMENT WHERE THE ERISA HEALTH SUBROGATION INTEREST IS FULLY SATISFIED BEFORE THE MEDICAL NEGLIGENCE VICTIM RECEIVES ONE PENNY 9404200055 940420 LETTERS TO THE EDITOR BRANDING ACHIEVERS AS NERDS HOW PASSE I WAS SHOCKED WHEN YOU LABELED YOUNG SCHOLAR THE MAGAZINE FOR HIGHPERFORMANCE STUDENTS AS A MAGAZINE FOR NERDS NEW MAGAZINES FOR NEW CLIQUES OF TEENS MARCH 14 THAT CHARACTERIZATION IS A DISTORTION OF OUR EDITORIAL CONTENT AND OUR READERSHIP AND IT IS A DEBASEMENT OF STUDENT ACHIEVEMENT AMERICANS SAY THEY CARE SO MUCH ABOUT SUCH CHARACTERIZATION PLACES PRESSURE ON TEENAGERS TODAY NOT TO EXCEL BUT TO BE AVERAGE OR WORSE YOUNG SCHOLAR'S MISSION IT TO EXTOL LEARNING WHEREVER IT TAKES PLACE BUT WHEN THE MEDIA CHOOSE TO CRITICIZE EDUCATION FOR ITS FAILINGS ON THE ONE HAND THEN CHARACTERIZE THOSE STUDENTS WHO DO WELL IN SCHOOL AS NERDS ON THE OTHER IS IT ANY WONDER OUR BRIGHTEST MINDS ARE GOING TO WASTE TEENAGERS WHO DO WELL IN SCHOOL ARE THE SAME ONES WHO EXCEL OUTSIDE THE CLASSROOM WHETHER IT BE IN SPORTS THE ARTS COMMUNITY SERVICE OR OTHER AREAS THEY ARE THE PEOPLE WHO IN 20 YEARS WILL PERFORM OPENHEART SURGERY WRITE COMPUTER CODES FLY OUR PLANES TEACH OUR CHILDREN'S CHILDREN HOW TO READ AND MUCH MORE THEY MAY ALSO BE THE WALL STREET JOURNAL'S LARGEST GROUP OF READERS REFERRING TO BRIGHT TEENAGERS AS NERDS IS DISGUSTING THE STEREOTYPE YOU ARE OBVIOUSLY CLINGING TO NO LONGER EXISTS 9404200054 940420 BUSINESS BRIEF SAFEWAY INC FIRM POSTS QUARTERLY PROFIT AFTER DEFICIT A YEAR EARLIER SAFEWAY INC CITING LOWER COSTS REPORTED FIRSTQUARTER NET INCOME OF 419 MILLION COMPARED WITH A YEARAGO LOSS THE FOOD RETAILER'S NET INCOME 34 CENTS A SHARE COMPARED WITH A LOSS OF 17 MILLION OR TWO CENTS A SHARE IN THE YEARAGO QUARTER FIRSTQUARTER 1993 RESULTS WERE AFFECTED BY A 275 MILLION CHARGE FOR A VOLUNTARY EMPLOYEE BUYOUT PROGRAM FIRSTQUARTER SALES WERE 349 BILLION UP 2 FROM 340 BILLION SAFEWAY SAID IN OAKLAND CALIF THAT OPERATING AND ADMINISTRATIVE EXPENSES DECLINED TO 2389 OF SALES IN THE QUARTER FROM 2448 A YEAR AGO INTEREST EXPENSE FELL TO 558 MILLION FROM 632 MILLION MAINLY BECAUSE OF REDUCED SHORTTERM BORROWINGS AND LOWER SHORTTERM INTEREST RATES MEANWHILE SAFEWAY SAID THE QUARTER SHOWED A CONTINUATION OF A SIXQUARTER TREND OF IMPROVING SAMESTORE SALES 9404200053 940420 PEPPERAND SALT THEN JUST LIKE THAT EXPIRE IF YOUR TAIL WAS ON FIRE ONE BUREAUCRACY RESOLVED TO CUT BACK ON ITS PAPERWORK BUT THEY HAD TO GIVE UP THE PROJECT REQUIRED TOO MUCH PAPERWORK 9404200052 940420 LETTERS TO THE EDITOR GARMENTS BAGGED BY STATE AGENCY IN YOUR MARCH 15 ARTICLE SPREAD OF ILLEGAL HOME SEWING IS FUELED BY IMMIGRANTS YOU CONCLUDE THAT BECAUSE THE GARMENTS DID NOT HAVE LABELS AND THE SEWERS REFUSED TO SPEAK THE REGULATORS COULD NOT PURSUE THE CASE AGAINST THE ILLEGAL INDUSTRIAL HOMEWORKERS UNDER CALIFORNIA LAW APPAREL MANUFACTURED THROUGH ILLEGAL INDUSTRIAL HOMEWORK WHETHER OR NOT THEY HAVE A MANUFACTURER'S LABEL ARE SUBJECT TO IMMEDIATE CONFISCATION BY THE STATE LABOR COMMISSIONER IN THE CASE MENTIONED IN THE ARTICLE THE STATE DID TAKE IMMEDIATE ACTION TO REMEDY THE SITUATION SINCE NOVEMBER 1992 STATE AND FEDERAL ENFORCEMENT AGENCIES JOINED BY LOCAL AUTHORITIES HAVE BEEN WORKING TOGETHER UNDER THE TARGETED INDUSTRIES PARTNERSHIP PROGRAM SO THAT ABUSES IN BOTH THE GARMENT MANUFACTURING AND AGRICULTURAL INDUSTRIES CAN BE ADDRESSED THROUGH UNIFORM AND COMPREHENSIVE ENFORCEMENT OF ALL LABOR LAWS INDEED IN THE VERY CASE CITED BY YOUR ARTICLE WHILE THE FEDERAL AGENTS WERE UNABLE TO PURSUE THE CASE BECAUSE OF THE LACK OF A MANUFACTURER'S LABEL THE STATE AGENTS CONFISCATED THE GARMENTS ENSURING THAT THIS INDUSTRIAL HOMEWORKER HAD NOTHING TO SHOW FOR HER ILLEGAL ACTIVITY 9404200051 940420 RULE OF LAW WHERE THE ACTION IS CONGRESS NOT THE SUPREME COURT BY RICHARD A EPSTEIN SEN GEORGE MITCHELL GOT IT RIGHT LAST WEEK IN A PERVERSE SORT OF WAY WORKING ON THE HEALTH SECURITY ACT FOR THE REMAINDER OF HIS CURRENT TERM IS MORE IMPORTANT THAN A LIFETIME SEAT ON THE SUPREME COURT HOWEVER MISGUIDED HIS EFFORTS TO MANGLE THIS COUNTRY'S HEALTH DELIVERY SYSTEM HE UNDERSTANDS CONGRESS'S DOMINANT ROLE IN RESHAPING THE OPERATION OF ONESEVENTH OF THE NATION'S ECONOMY IN ADDITION TO UNIVERSAL HEALTH INSURANCE COVERAGE HE CAN CONTROL PHYSICIAN TRAINING PROGRAMS IMPOSE RACIAL AND ETHNIC QUOTAS AND BRING RESEARCH ON PRESCRIPTION DRUGS TO A HALT IN CONTRAST ON THE COURT HE WOULD BE AT BEST A DISINTERESTED BYSTANDER TO THESE GREAT ISSUES UNDER CURRENT LAW NO GREAT CONSTITUTIONAL CHALLENGES CAN BE MADE AGAINST THE HEALTH SECURITY ACT AND THE SMALLER ONES WILL DOUBTLESS BE DISPOSED OF BY LOWER COURTS ALONG THE WAY THEREAFTER THE JUDICIAL BUSINESS WILL BE SORTING OUT THE CONFUSING MYRIAD OF REGULATIONS CHURNED OUT BY STAFFERS ENOUGH TO MAKE THE EYES OF FORMER POLITICIANS AND SITTING JUDGES GLAZE OVER THE ACTION IS IN THE TRENCHES NOT ON LONELY OLYMPUS WHERE THE COURT NOW PRESIDES IT HAS NOT ALWAYS BEEN THIS WAY THE COURT'S INFLUENCE AS A SOCIAL INSTITUTION EBBS AND FLOWS LIKE THE TIDES THE COURT PLAYED AN INDISPENSABLE LEADERSHIP ROLE IN STARTING THE BREAKDOWN OF JIM CROW IN THE 1940S AND 1950S ITS 1960S DECISIONS ON REAPPORTIONMENT USHERED IN THE TRANSFORMATION OF VOTING POWER AT ALL LEVELS OF GOVERNMENT AND ITS FATAL 1973 DECISION IN ROE V WADE CONSTITUTIONALIZED AND THEREBY TRANSFORMED THE ABORTION DEBATE BUT THERE ARE NO DELICIOUS MORSELS ON THE PRESENT POLITICAL AGENDA TO MAKE SEASONED POLITICIANS LIKE GEORGE MITCHELL SALIVATE ONE REASON IS THAT THE COURT LACKS THE STAYING POWER TO EXERT PERMANENT CONTROL OVER MAJOR GOVERNMENT INITIATIVES THE CHIEF ARENA FOR CIVIL RIGHTS TODAY IS CONGRESS AND THEN THE STATES BUT NOT THE COURT THERE IS NO FRESH SET OF JIM CROW LAWS TO BE STRUCK DOWN AND EVEN GAY RIGHTS WILL AFTER A FLURRY OF JUDICIAL ACTIVITY BE RESOLVED POLITICALLY CONGRESS HAS COMPLETE SWAY OVER THE CONTENT OF CIVIL RIGHTS LAWS IT DECIDED TO REINSTITUTE SUITS FOR DISPARATE IMPACT TO EXTEND RIGHTS FOR JURY TRIAL TO INCREASE DAMAGE AWARDS THE COURT IS A BYSTANDER CONFINED TO DECIDING WHETHER THE 1991 CIVIL RIGHTS ACT SHOULD BE GIVEN RETROACTIVE EFFECT UNLESS CONGRESS SPEAKS AGAIN LIKEWISE VOTING RIGHTS IS TODAY CONTROLLED IN CONGRESS AND THE EXECUTIVE BRANCH NOT THE COURTS NOTWITHSTANDING THE OCCASIONAL SUPREME COURT DECISION THAT PASSES ON THE VALIDITY OF THE GROTESQUE DISTRICTS THAT ONLY PARTISAN POLITICS CAN TURN OUT IT IS NO WONDER THAT THE CONFIRMATION FIGHT OF LANI GUINIER WAS MORE FEROCIOUS THAN ANY WE CAN EXPECT ON PRESIDENT CLINTON'S CHOICE FOR THE SUPREME COURT MORE TO THE POINT THERE ARE LARGE AREAS OF GOVERNMENT ACTIVITY HEALTH AND INTERNATIONAL TRADE THAT JUST FALL OUTSIDE THE PURVIEW OF THE SUPREME COURT IF I HAD MY DRUTHERS THIS WOULDN'T BE THE CASE BECAUSE THE NEW DEAL AND THE LARGE WELFARE STATE REMAIN AS UNCONSTITUTIONAL TODAY AS THEY WOULD HAVE BEEN AT THE FOUNDING BUT DON'T WORRY THE CURRENT CROP OF JUSTICES BOTH LIBERAL AND CONSERVATIVE HAS A MUCH MORE RESTRICTED VIEW OF THE COURT'S MISSION ROUTINELY INSULATE FROM JUDICIAL ATTACK ANY LARGESCALE CONGRESSIONAL INITIATIVE ON EMPLOYMENT ENVIRONMENT TRADE FINANCIAL MARKETS MR CLINTON'S NOMINEE IS CERTAIN TO RESPECT THAT POLITICAL CONSENSUS JUST LIKE THE OSTENSIBLY CONSERVATIVE NOMINEES OF THE 1980S JUSTICES ANTONIN SCALIA AND RUTH BADER GINSBURG FOR EXAMPLE SHARE THE SAME HIGH COMFORT LEVEL WITH THE ADMINISTRATIVE STATE WHERE IS THE EXCITEMENT AND CHALLENGE IN BEING A RUBBER STAMP HOW MANY CASES OF INDIAN JURISDICTION AND BANKRUPTCY DOES GEORGE MITCHELL WANT TO HANDLE BUT AREN'T THERE STILL AREAS WHERE THE COURT WILL USE ITS CONSTITUTIONAL MIGHT AGAINST CONGRESS SO IT APPEARS BUT APPEARANCES ARE DECEIVING IN HIS ILLFATED CONFIRMATION HEARINGS ROBERT BORK WAS PRESSED ON HIS CHALLENGE TO GRISWOLD V CONNECTICUT'S UNENUMERATED CONSTITUTIONAL RIGHT OF PRIVACY THAT PROHIBITED THE STATE AND BY IMPLICATION CONGRESS FROM BANNING THE SALE OF CONTRACEPTIVES WHAT IMMENSE CONGRESSIONAL RELIEF IF GRISWOLD WERE OVERTURNED TOMORROW THEN CONGRESS MIGHT FACE A FUNDAMENTALIST INITIATIVE TO REINSTATE THE BAN AND IF ROE V WADE GOES THEN ABORTION BECOMES A MATTER OF POLITICAL DAMAGE CONTROL EVEN FOR THE MOST SEASONED POLITICIANS REPUBLICANS IN PARTICULAR WOULD FIND THEMSELVES HARD PRESSED TO MAINTAIN THEIR FRAGILE COALITION BETWEEN RELIGIOUS FUNDAMENTALISTS SYMPATHETIC TO MARKET SOLUTIONS AND FISCAL RESTRAINT AND THE YUPPIE BUSINESS CLASS WHICH IS JEALOUS OF ITS REPRODUCTIVE PREROGATIVES EVEN WHERE THINGS ARE OFF LIMITS CONGRESSIONAL DOMINANCE IS SERVED REST ASSURED NO CLINTON NOMINEE WILL UPSET IT ON BALANCE THEREFORE WE ARE FOR THE MOMENT IN A PERIOD OF CONSTITUTIONAL QUIETUDE WHERE CONGRESS AND THE PRESIDENT CALL THE SHOTS TO BE SURE IN SOME AREAS THE COURT WILL CONTINUE TO PLAY AN IMPORTANT CONSTITUTIONAL ROLE IT CANNOT FOR EXAMPLE SEEM TO EXTRICATE ITSELF FROM THE DIVISIVE CASES OF CHURCH AND STATE THIS TERM'S KILLER IS KIRYAS JOEL ON THE CONSTITUTIONALITY OF A PUBLIC SCHOOL IN NEW YORK STATE FOR HANDICAPPED HASIDIC CHILDREN EVEN THOUGH HERE TOO THE EMERGING TREND HAS THE COURT DEFERRING TO CONGRESSIONAL ACTION UNDER BOTH THE FREE EXERCISE AND ESTABLISHMENT CLAUSES THE REAL BUSINESS FOR THE COURT IS LIKELY TO BE ON ISSUES THAT CAN ARISE ONLY IN THE COMFORTABLE SETTING OF THE ADMINISTRATIVE STATE DOES THIS OR THAT ADMINISTRATIVE REGULATION EXCEED THE AUTHORITY FOR IT UNDER STATUTE HERE KEY CASES HAVE COME DOWN UNDER THE CLEAN AIR ACT POINT SOURCE EMISSIONS THE PUBLIC HEALTH ACTS ABORTION COUNSELING AND IT SEEMS LIKELY THE ENDANGERED SPECIES ACT LOSS OF HABITAT YET DELEGATED AUTHORITY NEVER RISES TO THE LEVEL OF TABLE STAKES POKER BECAUSE ADMINISTRATORS CAN REDRAFT AND CONGRESS CAN AMEND THE CONTEMPORARY COURT'S INFLUENCE IS TEMPORARY AND STRATEGIC NOT PERMANENT AND STRUCTURAL THIS REALITY WILL SURELY INFLUENCE THE KIND OF NOMINATION THAT MR CLINTON WILL MAKE AND SURELY DISAPPOINT THE MANY ACADEMICS WHO WANT A STRONG AND COHERENT LIBERAL VOICE ON THE COURT AS A COUNTERWEIGHT TO JUSTICE SCALIA THE TRUTH IS THAT UNTIL THE POLITICAL CLIMATE CHANGES WE CANNOT EXPECT THE NEXT DECADE TO GIVE THE SUPREME COURT THE EPIC CONFRONTATION THAT GIVES GREAT JUSTICES THEIR COURAGE AND VOICE THE REAL ACTION LIES WITH CONGRESS AND THE PRESIDENT UNFORTUNATELY FOR THE NATION GEORGE MITCHELL IS RIGHT TO STAY IN THE SENATE OR BECOME BASEBALL COMMISSIONER MR EPSTEIN IS A PROFESSOR AT THE LAW SCHOOL OF THE UNIVERSITY OF CHICAGO 9404200050 940420 BUSINESS BRIEF TIMKEN CO FIRSTQUARTER PROFIT POSTED AFTER YEAREARLIER NET LOSS TIMKEN CO REPORTED FIRSTQUARTER EARNINGS THAT CONTRASTED TO A YEAREARLIER NET LOSS AND WERE MORE THAN DOUBLE THE DEPRESSED YEAREARLIER OPERATING RESULTS OFFICIALS SAID THEY EXPECT CONTINUED IMPROVEMENT THE CANTON OHIO BEARINGS AND SPECIALTYSTEELS CONCERN EARNED 77 MILLION OR 25 CENTS A SHARE COMPARED WITH OPERATING PROFIT OF 32 MILLION OR 10 CENTS A SHARE A YEAR EARLIER IN THE 1993 QUARTER THE COMPANY HAD A NET LOSS OF 2511 MILLION OR 822 A SHARE AFTER CHARGES FOR CUMULATIVE EFFECTS OF ACCOUNTING CHANGES SALES ROSE MORE THAN 10 TO 4665 MILLION FROM 4225 MILLION WITH THE BEARINGS AND SPECIALTYSTEELS BUSINESSES SHOWING ROUGHLY COMPARABLE SALES GAINS TIMKEN STOCK ROSE 375 CENTS OR 11 TO CLOSE AT 34875 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9404200049 940420 BUSINESS BRIEF CALIFORNIA MICROWAVE INC COMMUNICATIONS EQUIPMENT FIRM SHOWS RECORD EARNINGS CALIFORNIA MICROWAVE INC BENEFITING FROM BOOMING MARKETS FOR ITS MICROWAVE AND SATELLITE EQUIPMENT REPORTED A 51 INCREASE IN FISCAL THIRDQUARTER EARNINGS THE SUNNYVALE CALIFBASED COMPANY REPORTED RECORD EARNINGS OF 387 MILLION OR 30 CENTS A SHARE COMPARED WITH 256 MILLION OR 25 CENTS A SHARE A YEAR AGO SALES WERE A RECORD 1047 MILLION COMPARED WITH 721 MILLION A YEAR AGO THE COMPANY ATTRIBUTED THE RESULTS TO STRONG BOOMING WIRELESSCOMMUNICATIONS INDUSTRY AND TO A SHIFT IN ITS REVENUES TOWARD MORE PROFITABLE PRODUCTS 9404200048 940420 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 CITIZENS UTILITES CO 175 MILLION OF DEBENTURES DUE JUNE 1 2006 PRICED AT PAR TO YIELD 76 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 47 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEA BY STANDARD & POOR'S RATINGS GROUP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF DEBENTURES DUE APRIL 28 2004 PRICED AT PAR TO YIELD 788 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 74 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 150 MILLION OF MEDIUMTERM STEPUP NOTES DUE APRIL 28 1999 PRICED AT PAR TO YIELD 65 FOR THE FIRST YEAR ACCORDING TO MCM CORPORATEWATCH THE COUPON RISES EACH YEAR TO 675 7 8 AND 895 THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 65 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO CENTENNIAL TECHNOLOGIES INC INITIAL PUBLIC OFFERING OF ONE MILLION COMMON SHARES PRICED AT 6 A SHARE AND ONE MILLION REDEEMABLE COMMONSTOCK PURCHASE WARRANTS AT 20 CENTS A WARRANT THE COMPANY SAID SCHNEIDER SECURITIES INC AND NUTMEG SECURITIES LTD MANAGED THE UNDERWRITING GROUP KANSAS CITY KAN 15931 MILLION UTILITY SYSTEM REFUNDING AND IMPROVEMENT REVENUE BONDS PRICED BY A DOUGHERTY DAWKINS STRAND & BIGELOW INC GROUP THE 347 MILLION OF BONDS DUE IN 2014 ARE 625S PRICED TO YIELD 6375 WHILE THE 1246 MILLION OF BONDS DUE IN 2023 ARE 6375S PRICED TO YIELD 651 THIS ISSUE IS INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRIES TRIPLEA RATINGS FROM MOODY'S AND S&P PUERTO RICO ELECTRIC POWER AUTHORITY 5379 MILLION OF SERIES S AND SERIES T BONDS PRICED BY A BEAR STEARNS & CO GROUP YIELDS FOR THE 375 MILLION OF SERIES T POWERREVENUE BONDS RANGE FROM 47 IN 1996 TO 658 IN 2024 THE 1629 MILLION OF SERIES S POWERREVENUE REFUNDING BONDS YIELD FROM 435 IN 1995 TO 65 IN 2015 MOODY'S HAS RATED THE ISSUE BAA1 AND S&P HAS ASSIGNED A SINGLEAMINUS RATING SAN FRANCISCO CITY AND COUNTY AIRPORTS COMMISSION 90 MILLION OF REVENUE BONDS APPARENTLY WON BY A MERRILL LYNCH & CO GROUP THE BONDS ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX AND YIELD FROM 45 IN 1996 TO 66 IN 2024 THE ISSUE IS INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRIES TRIPLEA RATINGS FROM MOODY'S AND S&P TEXAS 753 MILLION OF SERIES 1994A1 VETERANS' HOUSING ASSISTANCE BONDS PRICED BY A BEAR STEARNS & CO GROUP YIELDS FOR THE REFUNDING GENERALOBLIGATION BONDS WHICH ARE TAXABLE RANGE FROM 5375 IN 1995 TO 785 IN 2003 BOTH MOODY'S AND S&P HAVE RATED THE BONDS DOUBLEA BADENWUERTTEMBERG LFINANCE NV GERMAN PARENT TWO BILLION MARKS OF GLOBAL BONDS DUE MAY 10 1999 TO BE PRICED TODAY VIA JOINT BOOKRUNNERS DEUTSCHE BANK AG JP MORGAN AND SALOMON BROTHERS THE BONDS ARE TO YIELD BETWEEN 34 AND 37 BASIS POINTS OVER THE 5 GERMAN GOVERNMENT NOTE OF JANUARY 1999 THE ISSUE IS GUARANTEED BY LANDESKREDITBANK BADENWUERTTEMBERG THE BORROWER'S SENIOR DEBT OUTSTANDING IS RATED TRIPLEA BY MOODY'S AND S&P CAISSE CENTRALE DE CREDIT IMMOBILIER FRANCE 15 BILLION FRENCH FRANCS OF 6 EUROBONDS DUE FEB 21 2002 AT ISSUE AND REOFFER PRICE 9283 VIA CREDIT LYONNAIS BONDS WILL TRADE INTERCHANGEABLY WITH 25 BILLION FRANCS OF IDENTICAL BONDS OUTSTANDING NEW BONDS YIELD 723 A MARGIN OF 57 BASIS POINTS OVER COMPARABLE FRENCH TREASURY FEES 035 DEWAN SALMAN FIBRE LTD PAKISTAN 45 MILLION OF CONVERTIBLE EUROBONDS DUE MAY 2001 AT ISSUE PRICE PAR VIA CROSBY SECURITIES AND CITICORP INTERNATIONAL LTD INDICATED SEMIANNUAL COUPON 475 TO 5 BONDS CONVERTIBLE INTO ORDINARY COMPANY SHARES AT INDICATED PREMIUM 8 TO 12 OVER FIVEDAY CLOSING AVERAGE SHARE PRICE TERMS FIXED TODAY BONDS CALLABLE AFTER FOUR YEARS IF SHARE PRICE EXCEEDS 140 OF CONVERSION PRICE FEES 25 KONINKLIJKE VOLKER STEVIN NV NETHERLANDS 75 MILLION DUTCH GUILDERS OF 525 CONVERTIBLE BONDS DUE MAY 19 2002 AT ISSUE PRICE PAR VIA ABN AMRO BANK NV CONVERTIBLE FROM OCT 1 UNTIL MATURITY INTO ORDINARY COMPANY SHARES AT 100 GUILDERS A 124 PREMIUM CALLABLE AT PAR AFTER FOUR YEARS IF SHARE PRICE AT LEAST 130 OF CONVERSION PRICE FEES 2375 LESS 035 FOR LEAD MANAGER MARUBENI INTERNATIONAL FINANCE PLC JAPANESE PARENT FIVE BILLION YEN OF 315 EUROBONDS DUE JULY 29 1996 AT ISSUE PRICE 1002 VIA SANWA INTERNATIONAL PLC FEES 02 SUDWESTDEUTSCHE LANDESBANK CAPITAL MARKETS PLC GERMAN PARENT 20 BILLION YEN OF 385 EUROBONDS DUE MAY 20 1999 AT ISSUE AND REOFFER PRICE 10015 VIA MERRILL LYNCH INTERNATIONAL LTD BONDS YIELD 382 GUARANTOR SUDWESTDEUTSCHE LANDESBANK FEES 025 SWEDEN SOVEREIGN 200 MILLION CANADIAN DOLLARS OF 825 EUROBONDS DUE DEC 29 1999 AT ISSUE PRICE 101245 VIA DAIWA EUROPE LTD REOFFERED AT 9962 TO YIELD 832 ANNUALLY A SPREAD OF 28 BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT BOND FEES 1875 9404200047 940420 TECHNOLOGY BRIEF DEPRENYL RESEARCH LTD BID TO BLOCK APOTEX'S PLANS FOR GENERIC DRUG IS SET BACK DEPRENYL RESEARCH LTD SAID THE FEDERAL COURT OF CANADA DISMISSED THE COMPANY'S ATTEMPT TO BLOCK APOTEX INC A TORONTOBASED GENERIC DRUG MANUFACTURER FROM GOING AHEAD WITH PLANS TO PRODUCE A GENERIC VERSION OF DEPRENYL'S KEY PRODUCT ELDEPRYL A TREATMENT FOR PARKINSON'S DISEASE TORONTOBASED DEPRENYL SAID THAT THE COURT DIDN'T GIVE REASONS FOR ITS RULING AND THAT THE COMPANY PLANS TO APPEAL THE DECISION IT SAID SALES BY APOTEX OF A GENERIC PRODUCT COULD HURT SALES OF ELDEPRYL WHICH STILL ACCOUNT FOR A LARGE PART OF DEPRENYL'S REVENUE IF APOTEX GOES AHEAD WITH PLANS TO SELL A GENERIC VERSION OF ELDEPRYL DEPRENYL SAID IT WILL INSTITUTE PROCEEDINGS FOR PATENT INFRINGEMENT APOTEX OFFICIALS COULDN'T BE REACHED FOR COMMENT 9404200046 940420 BUSINESS BRIEF AMERICAN BARRICK RESOURCES CORP FIRSTPERIOD NET ROSE 31 ON 30 INCREASE IN REVENUE AMERICAN BARRICK RESOURCES CORP TORONTO REPORTED A 31 INCREASE IN FIRSTQUARTER EARNINGS AS A RESULT OF LOWER OPERATING COSTS AND A 27 INCREASE IN GOLD PRODUCTION THE TORONTO GOLD PRODUCER SAID IT EARNED 604 MILLION OR 21 CENTS A SHARE IN THE QUARTER COMPARED WITH 461 MILLION OR 16 CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED 30 TO 1873 MILLION FROM 1441 MILLION THE COMPANY SAID COSTS WERE LOWER IN THE LATEST QUARTER BECAUSE THE ORE PROCESSED WAS OF A HIGHER GRADE THAN A YEAR EARLIER AND BECAUSE PROCESSING CAPACITY CLIMBED OPERATING COSTS WERE 160 AN OUNCE DOWN FROM 174 A YEAR EARLIER GOLD PRODUCTION IN THE QUARTER CLIMBED TO 451981 OUNCES FROM 354839 OUNCES A YEAR EARLIER 9404200045 940420 BUSINESS BRIEF PUBLIC SERVICE CO OF NEW MEXICO SALE OF INTEREST IN UTILITY IS EXPECTED TO BOOST PROFIT PUBLIC SERVICE CO OF NEW MEXICO SAID IT EXPECTS TO REPORT A 1994 GAIN OF 14 CENTS A SHARE FROM SELLING AN INTEREST IN UNIT 4 OF ITS SAN JUAN GENERATING STATION THE ALBUQUERQUE NM UTILITY SAID THE SALE OF 35 MEGAWATTS OF CAPACITY TO UTAH MUNICIPAL POWER SYSTEMS OF SALT LAKE CITY FOR 399 MILLION WAS APPROVED BY STATE REGULATORS AND IS EXPECTED TO BE COMPLETED IN EARLY JUNE THE SALE WILL MEAN A GAIN OF 81 MILLION FOR PS NEW MEXICO BUT HALF OF THAT MUST BE REFUNDED TO CUSTOMERS THE PART OF THE GAIN THAT STAYS WITH THE COMPANY WILL BOOST 1994 EARNINGS BY ABOUT 10 CENTS A SHARE IN ADDITION THE COMPANY SAID IT WILL SEE A TAX BENEFIT OF 16 MILLION OR FOUR CENTS A SHARE AS A RESULT OF THE REFUND TO CUSTOMERS FOR 1993 PS NEW MEXICO REPORTED A NET LOSS OF 567 MILLION OR 152 A SHARE INCLUDING NONRECURRING CHARGES OF 111 MILLION PROCEEDS FROM THE SALE TO UTAH MUNICIPAL WILL BE USED TO PAY LONGTERM DEBT PS NEW MEXICO SAID IN ADDITION THE COMPANY SAID IT EXPECTS A CONTINUING ANNUAL EARNINGS BENEFIT OF THREE CENTS TO FIVE CENTS A SHARE FROM REDUCED OPERATING EXPENSES LAST YEAR PS NEW MEXICO SOLD 50 MEGAWATTS OF CAPACITY IN SAN JUAN GENERATING STATION UNIT 4 TO THE CITY OF ANAHEIM CALIF FOR 555 MILLION THE SAN JUAN GENERATING STATION A COALPOWERED FACILITY IS LOCATED IN WATERFLOW NM 9404200044 940420 KIDDER FREEZES ACCOUNTS OF FIRED BOND TRADER JETT KIDDER PEABODY GROUP INC HAS FROZEN THE SECURITIES ACCOUNTS OF ITS RECENTLY FIRED CHIEF GOVERNMENTBOND TRADER JOSEPH JETT ACCORDING TO INDIVIDUALS WITH KNOWLEDGE OF THE MATTER MR JETT WHO MADE 9 MILLION LAST YEAR HAS TOLD ATTORNEYS WITH WHOM HE SPOKE THIS WEEK THAT UNLESS THE ACCOUNTS ARE FREED UP HE WON'T HAVE MONEY TO PAY LAWYERS KIDDER A UNIT OF GENERAL ELECTRIC CO FIRED MR JETT OVER THE WEEKEND ACCUSING HIM OF CREATING PHANTOM TRADES AND PROFITS IN THE SOCALLED GOVERMENT STRIPS MARKET INFLATING KIDDER'S INCOME BY 350 MILLION OVER MORE THAN A YEAR IN A BID TO BOOST HIS PERFORMANCEBASED BONUS STRIPS ARE CREATED BY SPLITTING THE INTEREST AND PRINCIPAL PORTIONS OF BONDS INTO TWO SEPARATELY TRADED ISSUES MR JETT HAS PREVIOUSLY DECLINED TO COMMENT ON THE ALLEGATIONS BY KIDDER JOHN LIFTIN KIDDER'S GENERAL COUNSEL SAID ONLY THAT WHEN ANY KIND OF DEPOSITORY INSTITUTION HAS A DISPUTE IT'S NOT UNUSUAL FOR ACCOUNTS TO BE FROZEN LAST YEAR MR JETT WAS ONE OF KIDDER'S MOST HIGHLY COMPENSATED EMPLOYEES KIDDER SAID ITS BESTPAID EMPLOYEES ARE SUBJECT TO A REQUIREMENT THAT 25 OF THEIR COMPENSATION MUST BE DEFERRED AND PAID AT A FUTURE DATE SUCH DELAYED PAYMENT PLANS AREN'T UNUSUAL ON WALL STREET MR JETT DIDN'T RETURN PHONE CALLS YESTERDAY 9404200043 940420 BUSINESS BRIEF LOCKHEED CORP DEFENSE CONCERN SAYS PROFIT SALES CLIMBED 21 IN QUARTER LOCKHEED CORP REPORTED A 21 INCREASE IN FIRSTQUARTER NET INCOME TO 92 MILLION OR 145 A SHARE FROM 76 MILLION OR 122 A SHARE A YEAR EARLIER THE CALABASAS CALIF DEFENSE AND SPACE COMPANY SAID REVENUE ALSO ROSE 21 TO 303 BILLION FROM 25 BILLION IN A STATEMENT CHAIRMAN DANIEL M TELLEP CITED STRONG RETURNS FROM THE COMPANY'S TEXAS OPERATIONS THAT MAKE THE F16 FIGHTER JET AS WELL AS FROM THE C130 MILITARY TRANSPORT PLANE ASSEMBLED AT MARIETTA GA AND THE NEXTGENERATION F22 AIRSUPERIORITY FIGHTER BEING BUILT BY LOCKHEED AND SUBCONTRACTOR BOEING CO AT THE END OF THE FIRST QUARTER LOCKHEED'S BACKLOG WAS 282 BILLION DOWN SLIGHTLY FROM 289 BILLION AT THE END OF 1993 TOTAL LOCKHEED EMPLOYMENT WAS 80700 DOWN FROM 83500 AT THE END OF 1993 AND DOWN FROM 91600 A YEAR AGO VARIOUS LOCKHEED DIVISIONS HAVE ANNOUNCED AT LEAST ANOTHER 6100 JOB CUTS THROUGH 1995 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING LOCKHEED FELL 50 CENTS TO 6075 9404200042 940420 MICHIGAN NATIONAL POSTS FIRSTPERIOD TURNAROUND MICHIGAN NATIONAL CORP REPORTED A SUBSTANTIAL FIRSTQUARTER EARNINGS TURNAROUND FROM A YEAREARLIER LOSS BUT THAT WASN'T GOOD ENOUGH FOR SHAREHOLDERS AT THE ANNUAL MEETING A NUMBER OF STOCKHOLDERS IN THE FARMINGTON HILLS MICH BANK HOLDING COMPANY INCLUDING SOME OF THE BIGGEST ONES CRITICIZED MANAGEMENT AND CALLED FOR THE SALE OF THE CONCERN THE STOCK WHICH SOME INVESTORS COMPLAINED HAS BEEN STAGNATING CLOSED YESTERDAY ON THE NASDAQ STOCK MARKET AT 6375 UP 75 CENTS FOR THE FIRST QUARTER MICHIGAN NATIONAL SAID IT EARNED 183 MILLION OR 119 A SHARE COMPARED WITH A NET LOSS OF 448 MILLION OR 3 A SHARE IN THE YEAREARLIER QUARTER MANAGEMENT ATTRIBUTED THE IMPROVEMENT TO SEVERAL FACTORS INCLUDING A 61 MILLION DECLINE IN AMORTIZATION EXPENSE FOR MORTGAGESERVICING ASSETS OUR PERFORMANCE IN 1994 WILL BE SIGNIFICANTLY BETTER THAN IT WAS A YEAR AGO SAID ROBERT J MYLOD MICHIGAN NATIONAL'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SUCH COMMENTS DID LITTLE TO MOLLIFY SHAREHOLDERS AT THE ANNUAL MEETING YESTERDAY A PARADE OF SPEAKERS BLASTED MR MYLOD AND THE BOARD FOR FAILING TO PRODUCE STRONGER FINANCIAL RESULTS 9404200041 940420 BUSINESS BRIEF COOPER INDUSTRIES INC FIRSTPERIOD NET FELL 23 DUE TO DROP IN OIL PRICES COOPER INDUSTRIES INC SAID ITS FIRSTQUARTER EARNINGS FELL 23 CITING A SLIDE IN PETROLEUM PRICES THE HOUSTON OIL INDUSTRIAL EQUIPMENT CONCERN REPORTED QUARTERLY PROFIT OF 484 MILLION OR 31 CENTS A SHARE COMPARED WITH EARNINGS OF 631 MILLION OR 44 CENTS A SHARE A YEAR AGO REVENUE FELL 10 TO 132 BILLION FROM 147 BILLION A YEAR AGO COOPER INDUSTRIES PREDICTED 1994 EARNINGS COULD PLUNGE AS MUCH AS 25 BECAUSE OF LOWER OIL PRICES ROBERT CIZIK CHAIRMAN AND CHIEF EXECUTIVE OFFICER PREDICTS 1994 EARNINGS ABOUT 25 BELOW 1993 WHEN COOPER INDUSTRIES REPORTED EARNINGS OF 3671 MILLION OR 275 A SHARE ON REVENUE OF 63 BILLION HE SAID THE COMPANY IS IMPROVING PRODUCTIVITY AND THE RESULTS SHOULD BE SEEN BY 1995 COOPER INDUSTRIES' STOCK PRICE FELL 37 CENTS TO CLOSE AT 3678 IN NEW YORK STOCK EXCHANGE TRADING 9404200040 940420 BUSINESS BRIEF TREMONT CORP TITANIUM UNIT SETS ACCORD ON 65 MILLION CREDIT PACT TREMONT CORP SAID THAT TITANIUM METALS CORP ITS 75OWNED OPERATING UNIT REACHED A DEFINITIVE AGREEMENT ON A NEW 65 MILLION CREDIT FACILITY WITH CONGRESS FINANCIAL CORP THE PRODUCER OF TITANIUM METAL PRODUCTS SAID IN DENVER THAT TITANIUM METALS WOULD USE ABOUT 45 MILLION OF THE PROCEEDS TO RETIRE ITS EXISTING DEBT WITH THE REST GOING FOR GENERAL CORPORATE PURPOSES INCLUDING THE PURSUIT OF GROWTH OPPORTUNITIES IN ITS INDUSTRIAL MARKETS TREMONT SAID THAT ALTHOUGH THE MAJORITY OF ITS UNIT'S SALES CONTINUE TO BE IN THE AEROSPACE SECTOR SALES TO INDUSTRIAL MARKETS REPRESENT AN INCREASING PORTION OF ITS BUSINESS TREMONT SAID THAT TITANIUM METALS PLANS TO INSTALL TWO ADDITIONAL WELDED TITANIUM TUBEPRODUCTION LINES AT ITS MORRISTOWN TENN FACILITY THIS YEAR BRINGING TOTAL CAPACITY TO NINE SUCH LINES 9404200039 940420 BUSINESS BRIEF DSC COMMUNICATIONS CORP QUARTERLY EARNINGS SURGE ON 29 REVENUE INCREASE DSC COMMUNICATIONS CORP'S EARNINGS MORE THAN DOUBLED IN THE FIRST QUARTER AS REVENUE SURGED 29 ON STRONG DEMAND FOR THE COMPANY'S PHONE SWITCHES AND OTHER COMMUNICATIONS EQUIPMENT IN THE LATEST PERIOD DSC EARNED 296 MILLION OR 51 CENTS A SHARE ON REVENUE OF 2009 MILLION A YEAR EARLIER IT EARNED 114 MILLION OR 24 CENTS A SHARE ON REVENUE OF 1562 MILLION THE EARNINGS WHICH WERE BETTER THAN ANALYSTS EXPECTED WERE RELEASED AFTER THE STOCK MARKET CLOSED IN NASDAQ STOCK MARKET TRADING DSC SHARES CLOSED AT 53375 UNCHANGED A DSC SPOKESMAN SAID IN DALLAS THAT THE COMPANY IS BENEFITING FROM HEAVY CAPITAL SPENDING BY THE BIG COMMUNICATIONS COMPANIES THAT ARE ITS CUSTOMERS INCLUDING THE BELL REGIONAL PHONE COMPANIES LONGDISTANCE PROVIDERS AND FOREIGN PHONE SYSTEMS 9404200038 940420 PEDAL TO THE METAL BRAZIL SWIFTLY BECOMES MAJOR AUTO PRODUCER AS TRADE POLICY SHIFTS VW FORD GM ARE BUILDING NEW LOWPRICED MODELS FOR AN EAGER POPULACE HOW HYPERINFLATION HELPS BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL SAO JOSE DOS CAMPOS BRAZIL THIS NATION'S AUTO INDUSTRY DEAD TO THE WORLD FOR ALL INTENTS AND PURPOSES IN THE 1980S IS BOOMING FUELED BY TAX BREAKS AND AN END TO THE BAN ON IMPORTS AND EVEN IN A BACKHANDED WAY BY THE COUNTRY'S RUNAWAY INFLATION WITH PRODUCTION RISING 295 TO 139 MILLION UNITS LAST YEAR BRAZIL OVERTOOK ITALY AND MEXICO TO BECOME THE 10TH LARGEST AUTO PRODUCER IN THE WORLD AND NOW AS IT GOES THROUGH A HUGE PRODUCTIVITYBOOSTING EFFORT THE COUNTRY'S AUTO INDUSTRY IS AIMING TO JOIN THE GLOBAL BIG LEAGUES BRAZIL HAS GREAT POTENTIAL TO MOVE WITHIN THE TOP FIVE AUTO MAKERS IN THE WORLD SAYS MARK HOGAN PRESIDENT OF GENERAL MOTORS DO BRASIL THE COUNTRY COULD EASILY PRODUCE TWO MILLION UNITS A YEAR WE COULD GIVE THE KOREANS A RUN FOR THEIR MONEY LOOKING FURTHER AHEAD PIERREALAIN DE SMEDT PRESIDENT OF AUTOLATINA THE LATIN AMERICAN JOINT VENTURE BETWEEN VOLKSWAGEN AG AND FORD MOTOR CO ENVISIONS A CAR MARKET OF FIVE MILLION UNITS BY 2015 WE'RE TALKING ABOUT A MARKET COMPARABLE TO THE US EUROPE OR JAPAN HE SAYS THERE ARE LOTS OF OBSTACLES THAT COULD ARISE BEFORE THIS HAPPENS TAXES MIGHT RISE AGAIN IMPORT BARRIERS COULD BE ERECTED ANEW AND HYPERINFLATION 2700 LAST YEAR AND RISING IS STILL A THREAT LABOR PEACE ISN'T A GIVEN EITHER JUST LAST WEEK ONE OF GM BRAZIL'S FACTORIES WAS CLOSED BY A STRIKE WHICH GM QUICKLY SETTLED BY MEETING DEMANDS FOR A 19 PAY INCREASE BUT AFTER A DECADE OF STAGNATION THAT MADE SOME WONDER WHETHER BRAZIL'S AUTO SECTOR LATIN AMERICA'S BIGGEST INDUSTRIAL COMPLEX HAD A FUTURE THE COUNTRY HAS BECOME ONE OF THE WORLD'S HOTTEST CAR MARKETS NEW MODELS ARE LAUNCHED ALMOST EVERY MONTH BILLIONS OF DOLLARS ARE BEING INVESTED LEAN PRODUCTION METHODS ARE BEING INTRODUCED AND IMPORTS ARE POURING IN AS TRADE BARRIERS FALL WHAT'S HAPPENING HERE IS VERY EXCITING TO THE POINT OF BEING EXHILARATING SAYS ROBERT RENNARD AUTOLATINA'S CHIEF OPERATING OFFICER BRAZIL'S BOOM IS THE MAJOR REASON LATIN AMERICA WAS THE FASTEST GROWING AUTO MARKET LAST YEAR ACCORDING TO CONSULTANTS DRI/MCGRAW HILL LATIN AMERICAN SALES ROSE 176 WHILE TOTAL WORLD SALES FELL 327 A STUDY BY FRANCE'S AUTOMOBILES PEUGEOT PREDICTS THAT LATIN AMERICAN CAR SALES SHOULD RISE A FURTHER 30 BY THE YEAR 2000 WITH BRAZIL ACCOUNTING FOR ALMOST HALF OF THAT SURGE EVERY AUTO MAKER IS INTERESTED IN LATIN AMERICA TODAY AND NO ONE CAN IGNORE BRAZIL SAYS DAVID RIO PEUGEOT'S DIRECTOR FOR LATIN AMERICA EVERYONE'S DOING FEASIBILITY STUDIES TO EVALUATE SETTING UP AN OPERATION THERE THERE HASN'T BEEN ANYTHING LIKE THIS IN YEARS THE BRAZILIAN CAR INDUSTRY'S TURNAROUND HIGHLIGHTS A LARGELY OVERLOOKED PHENOMENON THE COUNTRY'S PRIVATE SECTOR IS THRIVING AMID THE CHAOS OF INFLATION AND OFFICIAL CORRUPTION WHILE BRAZIL STILL TRAILS THE REST OF LATIN AMERICA IN BROAD ECONOMIC REFORMS MANY COMPANIES ARE BOOSTING SALES PROFITS AND EXPORTS BY INCREASING PRODUCTIVITY AND QUALITY INDUSTRIAL PRODUCTION ROSE MORE THAN 9 LAST YEAR AND GROSS DOMESTIC PRODUCT EXPANDED NEARLY 5 WITH THE AUTO SECTOR ACCOUNTING FOR ABOUT ONETHIRD OF THE GROWTH THE AUTO INDUSTRY SHOWS THAT WHEN WE WANT TO WE CAN TURN THINGS AROUND IN TWO YEARS SAYS APARICIO SIQUEIRA STEFANI DIRECTOR OF AUTODATA A TRADE PUBLICATION THE INDUSTRY CAN THANK THE FUSCA KNOWN ELSEWHERE AS THE VOLKSWAGEN BEETLE FOR THIS MODERNIZATION DRIVE PARADOXICALLY THE RELAUNCH LAST YEAR AFTER A SEVENYEAR RETIREMENT OF THE 60YEAROLD BUGEYED PUTTPUTT SPEARHEADED BRAZIL'S REVIVAL THE FUSCA IS STILL MADE THE SAME WAY AS WE DID IN GERMANY IN THE 1950S SAYS HEINZ KALITZKI MANAGER OF THE AUTOLATINA PLANT THAT ASSEMBLES IT AND IT IS NOT EVEN A BIG SELLER SINCE THE LAUNCH LAST OCTOBER AUTOLATINA HAS SOLD 7700 UNITS IT HAS JUST ANNOUNCED A 30 CUT IN DAILY OUTPUT BUT THE BEETLE'S REVIVAL KICKED OFF AN EFFORT BY THE BRAZILIAN AUTO INDUSTRY TO OFFER CHEAP SMALL CARS IN EXCHANGE FOR TAX BREAKS AND THAT EFFORT HAS TRANSFORMED BOTH THE WAY BRAZIL MAKES CARS AND THE KIND OF CARS IT MAKES WE HAVE TO GIVE CREDIT WHERE CREDIT IS DUE SAYS GM'S MR HOGAN THE FUSCA IS SORT OF THE CHAMPAGNE THAT CHRISTENED THE SHIP IT WAS A VERY IMPORTANT ELEMENT IN THE CHANGE OF THE BRAZILIAN AUTO INDUSTRY INDEED BRAZIL'S AUTO INDUSTRY HAS STEPPED ON THE ACCELERATOR AND ADVANCED ABOUT A DECADE IN TERMS OF PRODUCTS AND PRODUCTION METHODS IN THE SPACE OF TWO YEARS THIS IS A REVOLUTION SAYS AUTOLATINA'S MR DE SMEDT THE INDUSTRY IS REINVENTING ITSELF ONCE THE SYMBOL OF THE BRAZILIAN MIRACLE OF THE 1970S THE AUTO INDUSTRY HAD BECOME EMBLEMATIC OF LATIN AMERICA'S LOST DECADE OF THE 1980S A BAN ON IMPORTS MEANT THAT TECHNOLOGICAL INNOVATIONS PASSED THE INDUSTRY BY AND CONSUMERS HAD NO CHOICE BUT TO ACCEPT THE MANUFACTURERS' COMPLACENCY THEY CONSIDERED THAT REDESIGNING A TAILLIGHT WAS ENOUGH TO MAKE A NEW AND FLASHY MODEL SAYS BUSINESSMAN RICARDO SEMLER THE STREETS OF BRAZIL WERE FILLED WITH MOSTLY FORGOTTEN CARS LIKE THE CHEVROLET OPALA A LOCAL VERSION OF THE OPEL REKORD THE CHEVETTE THE VW BEETLE AND THE VW GOL A LOCAL PRODUCTION A 1991 STUDY BY JAMES P WOMACK OF MASSACHUSETTS INSTITUTE OF TECHNOLOGY SAID BRAZIL HAD BY FAR THE OLDEST MIX OF PRODUCTS ASSEMBLED ANYWHERE IN THE WORLD THE AVERAGE BRAZILIAN CAR STAYED IN PRODUCTION FOR 114 YEARS FIVE TIMES LONGER THAN IN JAPAN AND THREE TIMES LONGER THAN IN THE US QUALITY WAS THE SECONDWORST IN THE WORLD THE STUDY SAID AND PRODUCTIVITY AND THE LEVEL OF AUTOMATION THE LOWEST ANYWHERE BY EARLY 1992 DOROTHEA WERNECK THEN JUNIOR ECONOMY MINISTER REMARKED THE QUESTION WE HAVE TO ASK TODAY IS WHETHER WE WANT AN AUTO INDUSTRY IN BRAZIL IF THE ANSWER IS NO ALL WE HAVE TO DO IS CROSS OUR ARMS BECAUSE IT SOON WON'T EXIST IF THINGS CONTINUE THE WAY THEY ARE NOW BUT A TRIPLEWHAMMY WAS IN THE WORKS FIRST THENPRESIDENT FERNANDO COLLOR DE MELLO WHO CALLED BRAZILIANMADE CARS HORSE CARTS REPLACED THE BAN ON IMPORTS WITH A DUTY WHICH NOW STANDS AT 35 THAT GAVE BRAZILIANS A FIRST TASTE OF WHAT THEY HAD BEEN MISSING MR COLLOR ALSO REPEALED THE BAN ON IMPORTS OF ELECTRONIC GOODS ALLOWING CARS TO BE EQUIPPED WITH SUCH ITEMS AS ELECTRONIC FUEL INJECTION AND DIGITAL CLOCKS ROBOTS WERE PUT ON SOME PRODUCTION LINES THEN IN EARLY 1992 AUTO MAKERS UNIONS AND THE GOVERNMENT WORKED OUT A LANDMARK AGREEMENT TO CUT RETAIL PRICES BY 22 IN RETURN FOR TAX BREAKS AND A PLEDGE OF LABOR MODERATION FINALLY LAST YEAR PRESIDENT ITAMAR FRANCO PUT THE INDUSTRY INTO OVERDRIVE MEETING WITH AUTO MAKERS HE SAID BRAZIL NEEDED A CHEAP POPULAR CAR SOMETHING LIKE THE BEETLE MR DE SMEDT TOOK HIM LITERALLY AND SAID WHY NOT IF THE GOVERNMENT ELIMINATED THE TAX ON INDUSTRIALIZED GOODS BUT THE OTHER AUTO MAKERS SAID WHY NOT US IF THE GOVERNMENT EXTENDED TAX BREAKS TO THEM THEY WOULD LAUNCH A CHEAP CAR TOO THE UPSHOT PRICES HAVE FALLEN BY AS MUCH AS 42 IN DOLLAR TERMS THE CHEAPEST CARS SELL FOR ABOUT 7500 AND DOMESTIC CAR SALES ROSE 43 TO 106 MILLION UNITS LAST YEAR THE BOOM IS CONTINUING FOR THE FIRST TWO MONTHS OF 1994 SALES WERE 377 HIGHER THAN A YEAR EARLIER AND MARCH'S SALES OF 110000 UNITS MADE IT THE BEST MONTH IN THE INDUSTRY'S HISTORY AUTO MAKERS ARE NOW FIGHTING FIERCELY WITH NEW MODELS AND BIG INVESTMENT PLANS GM'S EFFORTS SHOW THE CHANGES GOING ON THROUGHOUT THE INDUSTRY NOT ONLY DID GM'S PRODUCT LINE THREE YEARS AGO BOAST THE 23YEAROLD OPALA AND THE 20YEAROLD CHEVETTE BUT LATER LAUNCHES LIKE THE MONZA ARRIVED YEARS AFTER THEIR EUROPEAN DEBUTS NOW WITH THE SUCCESSIVE LAUNCHES OF THE OMEGA THE VECTRA AND THE CORSA GM HAS PUT OUT AS MANY CARS SINCE 1992 AS IT DID IN THE TWO PRECEDING DECADES IN THE PAST THREE YEARS WE'VE TURNED OVER THE WHOLE PRODUCT LINE FOR CARS MR HOGAN SAYS HOW THE CARS ARE MADE IS NEW TOO OUR PEOPLE FROM ALL OVER THE WORLD HAVE BEEN COMING HERE TO SEE WHAT GENERAL MOTORS DO BRASIL IS DOING IN LEAN PROCESSES GM CHAIRMAN JOHN SMITH SAID ON A VISIT LAST YEAR TO SAO PAULO THE UNIT IS A WHOLLY OWNED SUBSIDIARY OF GENERAL MOTORS CORP TAKE THE CORSA WHICH GM IS CURRENTLY LAUNCHING HERE TO CASH IN ON THE POPULAR CAR BOOM THE CORSA IS A TURNING POINT FOR GM AND FOR THE INDUSTRY SAYS MARCO PIQUINI AN AUTO ANALYST IT'S THE FIRST CAR LAUNCHED IN BRAZIL ALMOST AT THE SAME TIME AS IN THE FIRST WORLD THE CORSA CAME OUT IN EUROPE ONLY A YEAR AGO BUT NOT IN THE US AND WHILE GM USED TO NEED ABOUT THREE YEARS TO DEVELOP A CAR THE CORSA TOOK 17 MONTHS THIS WAS POSSIBLE IN PART BECAUSE OF TRADE LIBERALIZATION IN THE OLD DAYS IMPORT RESTRICTIONS FORCED GM TO DEVELOP VIRTUALLY ALL THE PARTS LOCALLY DELAYING LAUNCHES THE CORSA HAS ONLY 70 OF ITS PARTS LOCALLY MADE GRADUALLY GM AIMS TO BUILD THIS TO MORE THAN 90 RELATIONS WITH SUPPLIERS HAVE CHANGED TOO IT USED TO BE THAT GM WOULD GIVE ME THE DESIGN IT NEEDED AND SAY HERE DO THIS' SAYS ANTONIO CARLOS RANDO AN EXECUTIVE OF HEADLIGHT MAKER CIBIE A UNIT OF FRANCE'S VALEO SA NOW THE AUTO INDUSTRY SAYS HERE'S WHAT WE WANT' AND WE WORK IN PARTNERSHIP TO DESIGN THE PRODUCT THIS LOWERS COSTS AND DEADLINES FOR BOTH WHEN THE INDUSTRY WAS PROTECTED WE DIDN'T REALLY CARE ABOUT THAT THEN THERE IS THE PRODUCTION LINE THE CHEVETTE WAS MADE WITHOUT A SINGLE ROBOT THE CORSA IS MADE WITH 62 OF THEM IMPORTED FROM JAPAN AND SWEDEN IT USED TO TAKE ABOUT 30 MANHOURS TO ASSEMBLE A CHEVETTE WHEREAS THE CORSA TAKES ABOUT 22 HOURS SAYS PAULO BECKER NETO THE ENGINEER IN CHARGE OF THE CORSA PROJECT AT GM'S PLANT IN SAO JOSE DOS CAMPOS TO MAKE A CORSA REQUIRES FAR FEWER SKILLS AND PARTS THAN THE CHEVETTE SO PRODUCTIVITY IS MUCH HIGHER BUT SINCE WE ANTICIPATE THAT VOLUME SHOULD BE TWICE THAT OF THE CHEVETTE WE'RE KEEPING THE WORKERS WITH THE CORSA A 250 MILLION INVESTMENT THAT BRINGS GM INTO THE POPULAR CAR SEGMENT THE COMPANY HOPES TO OVERTAKE VOLKSWAGEN AND BECOME THE BIGGEST AUTO MAKER IN BRAZIL BY 1995 TO BRING PRODUCTION UP TO 200000 UNITS A YEAR GM PLANS TO INVEST 500 MILLION NEXT YEAR TO BUILD ITS THIRD BRAZILIAN FACTORY BUT RIVALS ARE FIGHTING BACK AT ITS TAUBATE PLANT OUTSIDE SAO PAULO VOLKSWAGEN IS INSTALLING 54 ROBOTS TO LAUNCH A COMPLETELY REDESIGNED GOL FOR US TO BE OVERTAKEN WE'D HAVE TO STAY PARKED AND WATCH OTHERS PASS US BY WHICH WE WON'T DO SAYS MIGUEL CARLOS BARONE VW'S TOP EXECUTIVE IN BRAZIL FORD ONCE RUMORED TO BE THINKING OF LEAVING IS AGGRESSIVELY LAUNCHING MODELS TOO IT WILL IMPORT THE MONDEO FROM EUROPE AND THE TAURUS FROM THE US WE RENOVATED OUR ENTIRE PRODUCT RANGE IN 11 MONTHS SAYS FORD'S LOCAL PRESIDENT UDO KRUSE FIAT SPA BRAZIL'S FASTESTGROWING CAR MAKER IS REVAMPING ITS UNO AND THE TEMPRA THE ITALIAN COMPANY IS LIKELY TO MAKE BRAZIL THE PRODUCTION BASE FOR A WORLD CAR TO BE LAUNCHED IN 1996 SO IS BRAZIL'S AUTO INDUSTRY OUT OF THE WOODS NOT YET DESPITE ALL ITS PROGRESS IT STILL TRAILS JAPAN THE US AND EUROPE IN PRODUCTIVITY AND QUALITY EVEN WITH A 35 IMPORT DUTY IMPORTED CARS HAVE TAKEN 57 OF THE MARKET I'M FIGHTING AGAINST SAMURAIS WITH A WOODEN SWORD SAYS MR DE SMEDT OF AUTOLATINA THE FORDVW JOINT VENTURE LOCALLY BASED AUTO MAKERS SAY THEY STILL NEED TIME TO ADAPT TO THE NEW RULES AND WANT IMPORT QUOTAS TO BE IMPOSED THE COMPLETELY OPEN MARKET MAKES BRAZIL VERY ATTRACTIVE TO SELL IN AT MARGINAL COSTS SAYS MR DE SMEDT IF BRAZIL'S AUTO INDUSTRY IS A PRIORITY THE OPENING MUST BE REASONABLE AND THEN THERE IS INFLATION UP TO A POINT BRAZIL'S RUNAWAY INFLATION IS A BOON FOR THE AUTO INDUSTRY WITH THE CURRENCY LOSING VALUE DAILY BUYING A CAR HERE IS A HEDGE AGAINST INFLATION A CAR IN THE GARAGE IS SAFER THAN SAVINGS IN THE BANK SAYS LUIZ ADELAR SCHEUER PRESIDENT OF BRAZIL'S AUTO MANUFACTURERS' ASSOCIATION BUT INFLATION ALSO CONCENTRATES WEALTH MAKING OWNING A CAR A DREAM TO MOST BRAZILIANS WITHOUT HIGH INFLATION CREDIT WOULD REAPPEAR MAKING CARS AFFORDABLE TO A HUGE NEW SEGMENT OF THE POPULATION LIKE OTHER AUTO MAKERS HERE MR SCHEUER LIKES TO POINT TO A FIGURE THAT EXPLAINS WHY MANUFACTURERS ARE BULLISH ON BRAZIL DESPITE ITS TROUBLES TODAY ONLY 05 OF BRAZILIANS CAN AFFORD TO BUY A CAR IN A GIVEN YEAR 10 TIMES LESS THAN THE AVERAGE OF DEVELOPED COUNTRIES HE SAYS SIMPLY BY RAISING THE NUMBER OF PEOPLE WHO CAN AFFORD A CAR TO 1 OF THE POPULATION THE MARKET DOUBLES 9404200037 940420 BUSINESS BRIEF AVIALL INC FIRM TO POST 1STPERIOD NET IN MIDDLE RANGE OF FORECASTS AVIALL INC DALLAS EXPECTS TO REPORT FIRSTQUARTER EARNINGS ROUGHLY IN THE MIDDLE RANGE OF ANALYSTS' FORECASTS OF FIVE TO 10 CENTS A SHARE NO COMPARABLE PERSHARE FIGURES FROM A YEAR EARLIER ARE AVAILABLE BECAUSE THE AVIATIONSERVICES COMPANY WAS A UNIT OF RYDER SYSTEM INC UNTIL DECEMBER WHEN IT WAS SPUN OFF IN THE YEAREARLIER QUARTER THE COMPANY HAD PROFIT OF 1 MILLION ON SALES OF 2145 MILLION INCLUDING A 49 MILLION CHARGE FOR AN ACCOUNTING CHANGE FOR THE FIRST HALF PRESIDENT AND CHIEF EXECUTIVE OFFICER MARSHALL B TAYLOR SAID RESULTS WILL BE DOWN BECAUSE THE COMPANY HAS LESS WORK IN PROGRESS THAN IT DID A YEAR EARLIER HE ALSO CITED COMPETITIVE PRICING BUT MR TAYLOR SAID THE COMPANY IS LOOKING AT A STRONG SECOND HALF AVIALL HAS SOME PRICE INCREASES DUE IN THE SECOND HALF AND THE COMPANY RECENTLY RENEWED OR EXTENDED ENGINEOVERHAUL CONTRACTS WITH ITS FOUR BIGGEST CUSTOMERS 9404200036 940420 MARKETING & MEDIA NOTED INTERACTIVE TEST SUPERMARKET RETAILER WINNDIXIE STORES INC AND DRUGSTORE CHAIN ECKERD DRUG CO SAID THEY WOULD PARTICIPATE IN TIME WARNER INC'S FULL SERVICE NETWORK AN INTERACTIVE TEST IN ORLANDO FLA THAT IS SCHEDULED TO BE LAUNCHED THIS YEAR THE TWO COMPANIES WHICH ALREADY OFFER SHOPBYPHONE SERVICES THROUGH SHOPPERS EXPRESS SAID THEY WOULD BE ABLE TO DELIVER PRODUCTS IN ONE DAY AT THE SAME PRICE AS AT THE STORE 9404200035 940420 BUSINESS BRIEF ZURN INDUSTRIES INC PENNSYLVANIA MANUFACTURER TO CLOSE PLANT INCUR CHARGE ZURN INDUSTRIES INC SAID IT WILL INCUR A CHARGE OF BETWEEN 14 MILLION AND 16 MILLION OR UP TO 80 CENTS A SHARE DUE TO PLANS TO HALT MANUFACTURING AT ITS ERIE ENERGY DIVISION THE CHARGE WILL BE RECORDED IN THE COMPANY'S FISCAL FOURTH QUARTER ENDED MARCH 31 THE ERIE PABASED COMPANY WHICH MAKES LYNX GOLF EQUIPMENT AND SYSTEMS FOR POWER GENERATION AND WATER QUALITY CONTROL SAID IT WAS DISCONTINUING THE ERIE OPERATION BECAUSE OF THE DECLINING US BOILER MARKET AND HIGH LABOR COSTS THE PLANT CLOSURE WILL RESULT IN THE LOSS OF 180 MANUFACTURING JOBS THE COMPANY SAID ZURN HAS ABOUT 2900 EMPLOYEES BEFORE A PRETAX GAIN FROM THE SALE OF SEVERAL UNITS ZURN REPORTED EARNINGS OF 59 MILLION OR 47 CENTS A SHARE IN THE YEAR EARLIER PERIOD THE COMPANY SAID IT'S SCHEDULED TO RELEASE FOURTHQUARTER RESULTS MAY 18 9404200034 940420 SCHOOL BOARD MIGHT HIRE PRIVATE FIRM TO RUN SYSTEM HARTFORD CONN IN A GROUNDBREAKING STEP TOWARD PRIVATIZATION OF PUBLIC EDUCATION SCHOOLBOARD MEMBERS IN THIS CITY ARE CONSIDERING TURNING OVER MANAGEMENT OF THE WHOLE SCHOOL SYSTEM TO EDUCATION ALTERNATIVES INC MINNEAPOLISBASED EDUCATION ALTERNATIVES RUNS SOME SCHOOLS IN BALTIMORE AND ONE IN DADE COUNTY FLA IT HAS SAID THAT IT WOULD LIKE TO RUN AN ENTIRE DISTRICT TO DEMONSTRATE THAT ITS MANAGEMENT AND CURRICULUM INNOVATIONS CAN IMPROVE EDCUATIONAL RESULTS THE BOARD SAID EDUCATION ALTERNATIVES OFFICIALS HAVE BEEN PRESENTING THE COMPANY'S PROGRAM TO PARENTS AND SCHOOL OFFICIALS IN RECENT WEEKS A MAJORITY OF BOARD MEMBERS PROPOSES ASKING THE COMPANY TO PRESENT A FORMAL PLAN FOR RUNNING THE DISTRICT AMONG OTHER CONDITIONS EDUCATION ALTERNATIVES WOULD HAVE TO LIVE WITHIN THE CURRENT 1711 MILLION BUDGET FOR THE NEXT SCHOOL YEAR STARTING IN SEPTEMBER ALL CURRENT EMPLOYEES WOULD BE RETAINED UNDER CURRENT CONTRACTS AND THE COMPANY WOULD HAVE TO OBEY ALL SPECIALEDUCATION AND BILINGUALEDUCATION LAWS EDUCATION ALTERNATIVES OFFICIALS COULDN'T BE REACHED FOR COMMENT 9404200033 940420 BUSINESS BRIEF INTERREGIONAL FINANCIAL GROUP INC BROKERAGE HOLDING CONCERN POSTS FLAT 1STPERIOD RESULTS INTERREGIONAL FINANCIAL GROUP INC REPORTED FIRSTQUARTER EARNINGS NEARLY EQUAL TO A YEAR AGO ALTHOUGH THE BROKERAGE HOLDING CONCERN'S REVENUE ROSE 10 THE MINNEAPOLISBASED PARENT OF DAIN BOSWORTH INC AND RAUSCHER PIERCE REFSNES INC OF DALLAS HAD EARNINGS OF 102 MILLION IN THE LAST QUARTER OR 120 A SHARE MATCHING LAST YEAR'S 101 MILLION OR 122 A SHARE REVENUE INCREASED TO 1311 MILLION FROM 1188 MILLION FIXEDINCOME RESULTS DECLINED THE COMPANY SAID BECAUSE OF FALLING BOND PRICES AND SLOWED MUNICIPALBOND REFINANCINGS INTERREGIONAL SAID DAIN BOSWORTH CONTRIBUTED 806 MILLION IN REVENUE AND 114 MILLION IN PRETAX EARNINGS WHILE RAUSCHER PIERCE CONTRIBUTED 424 MILLION IN REVENUE AND 51 MILLION TO PRETAX INCOME 9404200032 940420 BUSINESS BRIEF CERIDIAN CORP TECHNOLOGY SERVICES CONCERN REPORTS 40 EARNINGS BOOST CERIDIAN CORP BOOSTED BY A SURGE IN ITS EMPLOYMENTSERVICES BUSINESS SAID ITS EARNINGS JUMPED 40 IN THE FIRST QUARTER THE MINNEAPOLISBASED TECHNOLOGY SERVICES CONCERN POSTED EARNINGS OF 222 MILLION OR 42 CENTS A SHARE COMPARED WITH 129 MILLION OR 30 CENTS A SHARE A YEAR EARLIER REVENUE FELL SLIGHTLY TO 2213 MILLION AS A RESULT OF A COMPLETED CONTROL DATA SYSTEMS CORP CONTRACT AND THE SALE LAST YEAR OF A COMPANY SUBSIDIARY CERIDIAN'S EARNINGS ABOUT FIVE CENTS A SHARE ABOVE MOST ANALYSTS' ESTIMATES SENT STOCK TO 2387 UP 175 A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE TRADING CERIDIAN REPORTED A STRONG SHOWING FROM ITS EMPLOYERSERVICES UNIT WHICH PROCESSES TAX AND PAYROLL PAYMENTS FOR BIG COMPANIES CERIDIAN SAID THE FIRST QUARTER IS AMONG ITS BUSIEST PERIODS DUE TO CORPORATE TAXFILING DEADLINES 9404200031 940420 REGIONAL FED BANK OFFICIAL SEES FURTHER RATE RISE WASHINGTON THE PRESIDENT OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO IMPLYING THAT THE FED WILL CONTINUE TO INCREASE INTEREST RATES SAID THE US ECONOMY HAS BEEN AND IS STILL GROWING SOMEWHAT ABOVE ITS LONGRUN POTENTIAL GROWTH RATE IN REMARKS PREPARED FOR DELIVERY TO AN AUDIENCE IN SANTA BARBARA CALIF ROBERT PARRY SAID SLACK IN LABOR AND PRODUCT MARKETS HAS ALL BUT EVAPORATED THIS MEANS THAT WE HAVE LITTLE OR NO LEEWAY TO GIVE EXTRA STIMULUS TO THE ECONOMY WITHOUT SOWING THE SEEDS OF INFLATION IN THE FUTURE YET EVEN AFTER BOOSTING SHORTTERM INTEREST RATES BY THREEQUARTERS OF A PERCENTAGE POINT IN THE PAST THREE MONTHS THE FED IS STILL HOLDING RATES LOW ENOUGH TO PROVIDE SOME STIMULUS TO THE ECONOMY MR PARRY SAID HE IS AMONG THE FIVE REGIONAL FED BANK PRESIDENTS WHO CURRENTLY VOTE ON MONETARY POLICY MR PARRY SAID THE US ECONOMY CAN SAFELY GROW BY ABOUT 25 A YEAR OVER TIME WITHOUT GENERATING INFLATION IT GREW NEARLY 4 IN 1992 AND 3 IN 1993 AND HE EXPECTS GROWTH OF AROUND 3 THIS YEAR 9404200030 940420 BUSINESS BRIEF NEW YORK TIMES CO FIRSTQUARTER PROFIT SOARED 62 ON A 30 REVENUE RISE NEW YORK TIMES CO CITING INCREASED ADVERTISING AND CIRCULATION REVENUE AT ITS FLAGSHIP NEWSPAPER AND REGIONAL NEWSPAPERS SAID FIRSTQUARTER EARNINGS SOARED 62 NET INCOME WAS 177 MILLION OR 17 CENTS A SHARE COMPARED WITH NET OF 109 MILLION OR 14 CENTS A SHARE FOR THE FIRST QUARTER LAST YEAR YEAREARLIER EARNINGS INCLUDED A PRETAX CHARGE OF 37 MILLION OR TWO CENTS A SHARE RELATED TO A MARCH SNOWSTORM WHICH DISRUPTED DELIVERY OF THE TIMES FIRSTQUARTER REVENUE ROSE 30 TO 5895 MILLION FROM 4545 MILLION PRIMARILY BECAUSE OF LAST YEAR'S ACQUISITION OF THE BOSTON GLOBE NEWSPAPER THE COMPANY ALSO SAID IT REACHED A TENTATIVE CONTRACT AGREEMENT WITH THE NEWSPAPER GUILD THE UNION REPRESENTING THE NEW YORK TIMES NEWSPAPER'S CLERICAL COMMERCIAL NEWS AND EDITORIAL EMPLOYEES 9404200029 940420 BUSINESS BRIEF PWA CORP AMR ACCORD COULD ENSURE CARRIER'S LONGTERM SURVIVAL PWA CORP SAID IT WILL RECEIVE AN EQUITY INFUSION OF 246 MILLION CANADIAN DOLLARS US1771 MILLION FROM AMR CORP IN A PACT THE COMPANIES WILL SIGN IN A WEEK THE AGREEMENT WHICH HAD BEEN OPPOSED VIGOROUSLY BY TORONTO AIR CARRIER AIR CANADA LTD MAKES THE LONGTERM SURVIVAL OF TWO NATIONAL CARRIERS IN CANADA MUCH MORE LIKELY SINCE IT PROMISES TO HELP PULL PWA OUT OF A FINANCIAL TAILSPIN PWA A CALGARY ALBERTA AIRLINE HOLDING COMPANY FOR CANADIAN AIRLINES INTERNATIONAL LTD SAID THE AGREEMENT CONCLUDES TWO YEARS OF STRUGGLE THE PACT IS PART OF A HOUSE OF CARDS THAT WOULD HAVE COLLAPSED IF UNSUPPORTED BY TWO RELATED AGREEMENTS A RESTRUCTURING INVOLVING THE CONVERSION OF MORE THAN C700 MILLION OF DEBT INTO EQUITY AND AN AGREEMENT WITH PWA'S EMPLOYEES TO PROVIDE A FURTHER C200 MILLION OF EQUITY OVER FOUR YEARS PWA SAID THAT WHEN ALL THREE AGREEMENTS ARE CONCLUDED ITS BALANCE SHEET WILL BE STRENGTHENED BY OVER C1 BILLION DALLAS AIRLINE HOLDING COMPANY AMR HAD SAID IT WOULD BUY A ONETHIRD INTEREST IN PWA INCLUDING 25 OF VOTING SHARES 9404200028 940420 US IS TO SEEK TOUGHER STANCE AGAINST SERBS NATO TO BE ASKED TO MAKE OR THREATEN AIR STRIKES IN BID TO AID MUSLIMS BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US WILL ASK ITS NATO ALLIES WITHIN A FEW DAYS TO THREATEN AIR STRIKES AGAINST BOSNIAN SERBS IF THEY DON'T HALT THEIR ATTACKS ON ALL MUSLIM SAFE AREAS A NEW MORE FORCEFUL ROUND OF AIR STRIKES AGAINST BOSNIA'S SERBS OR EVEN THE THREAT OF THEM COULD MAKE THOUSANDS OF MAINLY EUROPEAN PEACEKEEPERS ON THE GROUND EVEN MORE VULNERABLE TO SERB RETALIATION AND THE US WILL HAVE TO LOBBY ITS ALLIES HARD TO WIN THEIR SUPPORT FOR THE PROPOSAL US OFFICIALS SAY THAT WASHINGTON ALSO MAY HAVE TO SIGN ON TO A FRENCH PROPOSAL FOR A GREAT POWERS CONFERENCE THAT WOULD IN EFFECT PRESIDE OVER THE PARTITIONING OF BOSNIA SUCH A CONFERENCE WOULD BRING TOGETHER REPRESENTATIVES OF THE US EUROPEAN UNION RUSSIA AND THE UNITED NATIONS UNTIL NOW THE CLINTON ADMINISTRATION HAS RESISTED THE IDEA OF SUCH A CONFERENCE SAYING THE US WOULDN'T IMPOSE ANY SETTLEMENT ON THE WARRING PARTIES PARTICULARLY THE AGGRIEVED BOSNIAN MUSLIMS BUT WITH PARALLEL USRUSSIAN NEGOTIATING EFFORTS GOING NOWHERE AND FEAR MOUNTING THAT THE BOSNIAN SERBS COULD BROADEN THEIR ATTACKS THE ADMINISTRATION MAY NOW HAVE LITTLE CHOICE BUT TO GO ALONG UN SECRETARY GENERAL BOUTROS BOUTROSGHALI HAS ASKED THE NORTH ATLANTIC TREATY ORGANIZATION TO GIVE HIM THE AUTHORITY TO CALL IN AIR STRIKES TO DEFEND THE SAFE AREAS THE US WILL CITE THAT REQUEST WHEN IT BRINGS THE NEW PROPOSAL TO A MEETING OF THE NORTH ATLANTIC COUNCIL NATO'S POLITICAL ARM WITHIN THE NEXT FEW DAYS THE NEW INITIATIVE IS A CONSIDERABLE GAMBLE FOR THE ADMINISTRATION AS WELL AS FOR THE WESTERN ALLIANCE IF THE US FAILS TO PERSUADE THE ALLIES TO ACCEPT THIS MOST RECENT STRATEGY QUESTIONS WILL CERTAINLY BE RAISED AGAIN ABOUT PRESIDENT CLINTON'S ABILITY TO LEAD THE ALLIANCE IF NATO SIGNS ON TO THE PLAN AND AGAIN FAILS TO FOLLOW THROUGH IT COULD BE SHOWN ONCE AND FOR ALL TO BE A PAPER TIGER AND IF NATO LAUNCHES AIR STRIKES AND THE SERBS DON'T CAVE IN THE US AND ITS ALLIES WILL HAVE TO DECIDE WHETHER TO DEEPEN THEIR MILITARY INVOLVEMENT OR RETREAT FROM THE CONFLICT COMPLETELY WHILE THE SERBS PULLED BACK THEIR GUNS FROM SARAJEVO AFTER NATO ISSUED A SIMILAR THREAT LAST FEBRUARY THE SERBS MAY BE LESS IMPRESSED AFTER THE ALLIANCE'S WEAK SHOWING IN GORAZDE WHERE AIR STRIKES FAILED TO HALT THE SERB ASSAULT MR CLINTON WHO HAS BEEN SAVAGED IN EDITORIAL PAGES AND ON CAPITOL HILL FOR THE GORAZDE DEBACLE SAID THE ALLIANCE WON'T MAKE ANY THREATS IT COULDN'T DELIVER ON WE SIMPLY MUST NOT BE ON RECORD IN FAVOR OF ANY POLICY WE ARE NOT PREPARED TO FOLLOW THROUGH ON HE TOLD REPORTERS YESTERDAY AS PART OF THIS MOST RECENT INITIATIVE US OFFICIALS SAID THEY ALSO WILL DISCUSS WITH ALLIES WAYS TO TIGHTEN ENFORCEMENT OF ECONOMIC SANCTIONS ON SERBIA AN EFFORT THAT SO FAR HAS HAD LITTLE EFFECT ON EITHER THE BOSNIAN SERBS OR THEIR PATRONS IN BELGRADE BUT IT IS CLEAR THAT US OFFICIALS HAVE AGAIN DECIDED THAT FORCEFUL AIR STRIKES OR AT LEAST THE THREAT OF THEM ARE THE ONLY WAY TO BRING THE BOSNIAN SERBS TO HEEL WHILE IT ISN'T KNOWN WHERE MOSCOW CURRENTLY STANDS ON THE QUESTION OF MOREFORCEFUL AIR STRIKES THE RUSSIANS ARE LOSING PATIENCE WITH THE SERBS AND HAVE ALSO THROWN THEIR SUPPORT BEHIND THE IDEA OF A GREATPOWERS SUMMIT RUSSIAN PRESIDENT BORIS YELTSIN LOBBIED THE IDEA HARD IN A TELEPHONE CONVERSATION WITH PRESIDENT CLINTON YESTERDAY MR CLINTON'S WILLINGNESS TO LISTEN WAS CLEARLY IMPROVED AFTER THE RUSSIAN LEADER BLASTED THE BOSNIAN SERBS FOR THEIR RELENTLESS ATTACKS ON GORAZDE AND APPEARED TO THREATEN THEM WITH SOME UNSPECIFIED RETALIATION IN THE MOST RESOLUTE MANNER I WOULD NOT RECOMMEND TO THE SERBIAN SIDE TO CONTINUE TO TEST THE PATIENCE OF THE WORLD COMMUNITY MR YELTSIN SAID IN A STATEMENT THE SERBS CONTINUED TO SHELL GORAZDE THROUGHOUT YESTERDAY LATE LAST NIGHT HOWEVER THE BOSNIAN SERB POLITICAL LEADERSHIP SIGNED STILL ANOTHER CEASEFIRE AGREEMENT WITH THE UN AND AGREED TO ALLOW THE DEPLOYMENT OF UN PEACEKEEPERS IN THE TOWN REUTERS NEWS AGENCY REPORTED THE SERBS MADE A SIMILAR PROMISE LAST SUNDAY ONLY TO BREAK IT IMMEDIATELY YESTERDAY AFTERNOON THE SERBS REPORTEDLY FREED ABOUT 75 OF THE UN MILITARY OBSERVERS THEY HAD DETAINED DURING RECENT DAYS THEY ALSO RETURNED 13 OF THE 18 ANTIAIRCRAFT GUNS THEY HAD SEIZED FROM UN CONTROL EARLIER YESTERDAY UN SPOKESMAN ERIC CHAPERON TOLD REUTERS IN SARAJEVO IN THE MEANTIME PRESSURE MOUNTED ON CAPITOL HILL FOR STRONGER MEASURES HOUSE DEMOCRATIC WHIP DAVID BONIOR OF MICHIGAN SAID IT'S TIME TO USE THE FULL WEIGHT OF US AND NATO WARPLANES IN BOSNIA IT'S TIME TO POUND THE BOSNIAN SERBS INTO SUBMISSION JEFFREY H BIRNBAUM CONTRIBUTED TO THIS ARTICLE 9404200026 940420 BUSINESS BRIEF CONFEDERATION LIFE INSURANCE CO TALKS WITH GREATWEST LIFE AIM AT MERGER CAPITAL BOOST CONFEDERATION LIFE INSURANCE CO SAID IT IS IN TALKS WITH GREATWEST LIFE ASSURANCE CO AIMED AT ESTABLISHING A STRATEGIC ALLIANCE BETWEEN THE TWO COMPANIES WHICH WOULD STRENGTHEN CONFEDERATION LIFE'S CAPITAL BASE THE TORONTOBASED INSURANCE CONCERN DIDN'T GIVE ANY FURTHER DETAILS IN A BRIEF NEWS RELEASE AND COMPANY OFFICIALS DECLINED FURTHER COMMENT CONFEDERATION LIFE'S EARNINGS AND CAPITAL BASE HAVE BEEN ERODED BY CONTINUING LOSSES FROM ITS PORTFOLIO OF REALESTATE INVESTMENTS A RESULT OF ITS AGGRESSIVE MOVE INTO PROPERTY LENDING DURING THE 1980S A MERGER BETWEEN CONFEDERATION LIFE AND GREATWEST LIFE WOULD BRING TOGETHER TWO OF THE THREE LARGEST COMPANIES IN THE GROUPINSURANCE MARKET IN CANADA GREATWEST LIFE BASED IN WINNIPEG MANITOBA IS AN INDIRECT UNIT OF POWER FINANCIAL CORP OF MONTREAL 9404200025 940420 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 3/4 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 13/16 HIGH 3 1/2 LOW 3 11/16 NEAR CLOSING BID 3 3/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 1/4 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 385 45 TO 59 DAYS 395 60 TO 74 DAYS 4 75 TO 89 DAYS 405 90 TO 119 DAYS 420 120 TO 149 DAYS 432 150 TO 179 DAYS 442 180 TO 239 DAYS 470 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 390 30 DAYS 4 60 DAYS 412 90 DAYS CERTIFICATES OF DEPOSIT 328 ONE MONTH 337 TWO MONTHS 352 THREE MONTHS 393 SIX MONTHS 449 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 385 ONE MONTH 415 THREE MONTHS 455 SIX MONTHS BANKERS ACCEPTANCES 377 30 DAYS 389 60 DAYS 404 90 DAYS 415 120 DAYS 426 150 DAYS 439 180 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 15/16 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 560 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 846 60 DAYS 855 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 30 YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 840 60 DAYS 849 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 630 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 296 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9404200021 940420 DO CALL US' MORE COMPANIES INSTALL 1800 PHONE LINES BY CARL QUINTANILLA AND RICHARD GIBSON STAFF REPORTERS OF THE WALL STREET JOURNAL YOUR CHOCOLATE BAR TASTES FUNNY YOUR HOT DOGS DON'T SMELL FRESH YOUR LAUNDRY DETERGENT IS MISSING A MEASURING SCOOP WHERE DO YOU GO TO COMPLAIN TRY THE TELEPHONE MORE THAN TWOTHIRDS OF MANUFACTURERS NOW OFFER 1800 NUMBERS UP FROM 40 A DECADE AGO ACCORDING TO A 1992 STUDY BY THE SOCIETY OF CONSUMER AFFAIRS PROFESSIONALS IN BUSINESS AND AS THE WAR BETWEEN BRAND NAMES HEATS UP MORE COMPANIES ARE IMPLEMENTING TOLLFREE LINES IT'S THE COST OF DOING BUSINESS THESE DAYS SAYS JEANNE LUKAS COPARTNER OF THE LORING PARTNERSHIP A MINNEAPOLISBASED MARKETING CONSULTANT COMPANIES HAVE TO HAVE A VEHICLE WHERE PEOPLE CAN GO ACCORDING TO A STUDY BY THE TECHNICAL ASSISTANCE RESEARCH PROGRAMS A CUSTOMERSERVICE RESEARCH FIRM IN WASHINGTON DC 86 OF CONSUMERS BELIEVE 800 NUMBERS ON PACKAGES CONNOTE QUALITY PRODUCTS BUT COMPANIES HAVE ANOTHER COMPELLING REASON TO OFFER THEIR CUSTOMERS A FREE PHONE CALL WE GET IMMEDIATE FEEDBACK ON OUR PRODUCTS SAYS A SPOKESWOMAN FOR THE STARKIST FOODS DIVISION OF HJ HEINZ CO STILL NOT EVERYONE IS A CONVERT WHILE PROCTER & GAMBLE CO PRINTS 800 NUMBERS ON NEARLY ALL ITEMS FOOD GIANT CONAGRA INC HAS THEM ON JUST A FEW QUAKER OATS CO IS JUST NOW PHASING IN 800 SERVICE ACROSS THE BOARD AS IT SEEKS TO BECOME WHAT AN EXECUTIVE SAYS IS A MORE CONSUMERDRIVEN COMPANY GERBER PRODUCTS CO HAS A 24HOUR ADVICE LINE STAFFED WITH MOTHERS WHO WORK PART TIME BUT RIVAL ABBOTT LABORATORIES DOESN'T PRINT A NUMBER ON ITS SIMILAC BRAND BABY FORMULA WHY THE HESITATION FOR ONE THING TOLLFREE HOTLINES ARE EXPENSIVE TO STAFF SOME COSTING MILLIONS OF DOLLARS A YEAR AND AS CALLS POUR IN THE PRESSURE TO ANSWER PHONES QUICKLY AND PLEASANTLY IS INTENSE IF A TOLLFREE NUMBER IS MISMANAGED SAYS MS LUKAS IT CAN BE INCREDIBLY COSTLY THE CUSTOMER CAN ACTUALLY BE DISSUADED FROM USING THE PRODUCT FURTHERMORE CONSUMER COMPLAINTS TRIPLE WHEN AN 800 NUMBER IS IMPLEMENTED SOME MANUFACTURERS ASK WHAT'S THE PAYOUT' SAYS PHILIP KOTLER A MARKETING PROFESSOR AT NORTHWESTERN UNIVERSITY IN EVANSTON ILL FOR SOME COMPANIES THE COSTS SEEM TO EXCEED THE VALUE HEINZ ONE OF THE COUNTRY'S MAJOR PACKAGEDFOODS CONCERNS DISCONNECTED 800 SERVICE FOR MOST OF ITS PRODUCTS BECAUSE OF THE EXPENSE OF MAINTAINING A HOTLINE AND THE FACT THAT MANY OF THE PHONE INQUIRIES INVOLVED REQUESTS FOR RECIPES AND OTHER PRODUCT INFORMATION THAT COULD READILY BE HANDLED BY MAIL THE COMPANY CONTINUES TO HAVE A BABYFOOD LINE 1800 USA BABY HOWEVER AND CONSUMERS WITH QUESTIONS ABOUT OTHER HEINZ PRODUCTS HAVE LEARNED TO CALL THAT NUMBER KNOWING THEY WILL BE TRANSFERRED TO A CONSUMERAFFAIRS EXPERT ELSEWHERE IN THE COMPANY OBVIOUSLY ANSWERING THE COMPLAINTS OF UNHAPPY CUSTOMERS ALL DAY ISN'T A FUN JOB SOME CALLERS YELL AT PHONE REPRESENTATIVES IT'S HARD TO STAY CALM SOMETIMES SAYS ONE PHONE REPRESENTATIVE WHO REQUESTED ANONYMITY I'VE SEEN COLLEAGUES JUST SET THE PHONE DOWN AND START SLAMMING WALLS STILL LEAVING A CUSTOMER'S COMPLAINT UNRESOLVED IS DANGEROUS FOR A COMPANY ESPECIALLY SINCE CONSUMERS SHARE THEIR EXPERIENCES WITH OTHERS A 1992 STUDY FOUND THAT CALLERS WHO HAD THEIR COMPLAINT SOLVED QUICKLY TOLD FIVE PEOPLE ON AVERAGE ABOUT THE HELPFUL SERVICE THOSE WHO WEREN'T SATISFIED TOLD NINE TO 10 PEOPLE BUT WHILE 800 NUMBERS MAY ENHANCE A COMPANY'S IMAGE THEY'RE UNLIKELY TO HELP WIN OVER NEW CUSTOMERS IT'S NOT ABOUT NEW CONQUESTS SAYS JOHN GOODMAN PRESIDENT OF TECHNICAL ASSISTANCE RESEARCH PROGRAMS IN WASHINGTON DC IT'S ABOUT JUST KEEPING THE CUSTOMERS YOU'VE GOT TOLLFREE SERVICE HAS BEEN AROUND SINCE 1967 ACCORDING TO AMERICAN TELEPHONE & TELEGRAPH CO WHICH PIONEERED IT BUT NOW HAS MORE THAN 500 COMPETITORS IN THE BUSINESS THE FIRST YEAR THERE WERE ABOUT SEVEN MILLION 800 CALLS LAST YEAR AT&T HANDLED 13 BILLION ABOUT 21 OF THE MINUTES CONSUMED FOR PRODUCT AND OTHER CONSUMERSERVICE INQUIRIES GIANT COMPANIES LIKE DOWBRANDS LP A SUBSIDIARY OF DOW CHEMICAL CO RECEIVE UP TO A QUARTER OF A MILLION CALLS A YEAR AND EVERY NEW PRODUCT THAT INCLUDES AN 800 NUMBER INCREASES THE WORKLOAD TO KEEP CALLS DOWN SOME COMPANIES PUT 800 NUMBERS ONLY ON SOME OF THEIR PRODUCTS THOSE THEY THINK WILL GENERATE SUFFICIENT CONSUMER QUESTIONS TO JUSTIFY THE EXPENSE CAMPBELL SOUP CO FOR INSTANCE HAS AN 800 NUMBER ON ITS HEALTHY REQUEST LINE OF PREMIUM SOUPS BUT NOT ON ITS FAMILIAR REDLABEL SOUP CANS THE COMPANY'S SWANSON'S FROZEN DINNERS CARRY 800 NUMBERS BUT ITS PEPPERIDGE FARM BAKED GOODS DON'T AT CONAGRA IT'S UP TO THE PRODUCT'S MANAGERS AND MARKETERS WHETHER THE PACKAGE HAS AN 800 NUMBER ITS HUNTWESSON DIVISION HAS NUMBERS ON NEW ITEMS SUCH AS WESSON COOKING SPRAY BUT NOT ON WESSON COOKING OIL SOME ORVILLE REDENBACHER POPCORN VARIETIES HAVE NUMBERS OTHERS DON'T CELESTIAL SEASONINGS INC THE HERBALTEA MAKER PRINTS 800 NUMBERS ON ALL BUT ITS TOP10 SELLING PRODUCTS SOME COMPANIES SLAP THE NUMBER RIGHT ON THERE AND THEY DON'T HAVE THE PEOPLE TO BACK IT UP SAYS A SPOKESWOMAN FOR THE BOULDER COLO COMPANY YOU'RE MAKING MATTERS WORSE SOME COMPANIES HAVE HESITATED TO USE 800 NUMBERS PRECISELY BECAUSE THEY FEARED GETTING TOO MANY CALLS FOR A LONG TIME CEREAL BOXES DIDN'T HAVE 800 NUMBERS BECAUSE MANUFACTURERS THOUGHT THAT KIDS READING BOXES OVER BREAKFAST WOULD REACH FOR THE PHONE SUCH CONCERN WASN'T TOTALLY UNREALISTIC GENERAL MILLS INC ONCE OFFERED A TOLLFREE CHAT WITH THE LUCKY CHARMS LEPRECHAUN THE PHONE COMPANY WENT BALLISTIC A SPOKESMAN SAYS DESPITE THE PITFALLS MARKETING EXPERTS PRAISE TOLLFREE LINES AS A WAY TO GIVE COMPANIES A HUMAN FACE IT'S KIND OF SAD THAT MORE COMPANIES DON'T MAXIMIZE THE EASE WITH WHICH CONSUMERS CAN REACH THEM ADDS DR KOTLER THE MARKETING PROFESSOR BUT IF YOU'RE GOING TO HAVE A NUMBER IT TAKES A LOT OF DETAILING SOME COMPANIES JUST MAY NOT WANT TO SPEND ALL THEIR TIME ANSWERING PHONE CALLS 9404200020 940420 HIGHTECH HEALTH HOSPITALS RUSH TO BUY A 3 MILLION DEVICE FEW PATIENTS CAN USE SURGEONS WANT GAMMA KNIFE FOR CERTAIN BRAIN CASES AND OFTEN GET THEIR WAY TWO MACHINES 10 MILES APART BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL CORAL GABLES FLA THE GAMMA KNIFE IS A MEDICAL DEVICE THAT COSTS 3 MILLION IT EMITS GAMMA RADIATION TO TREAT BRAIN TUMORS AND LESIONS BUT IT IS USED ON ONLY A FEW TYPES OF TUMORS AND MOST OF THE 16 GAMMA KNIVES IN THE US ARE IDLE FOR ALL BUT TWO DAYS A WEEK BY SOME ESTIMATES JUST SIX OF THEM COULD HAVE TREATED ALL AMERICAN PATIENTS LAST YEAR IS THIS A CASE OF MEDICAL EXCESS NOT TO SOME DOCTORS GAMMA KNIVES ARE THE NEWEST MEDICAL STATUS SYMBOL AND HOSPITALS AND PHYSICIANS ARE CLAMORING FOR THEM MEDICAL CENTERS IN PHILADELPHIA LOS ANGELES SAN DIEGO AND KANSAS CITY MO ARE ABOUT TO INSTALL THEM DOCTORS IN A HALFDOZEN OTHER CITIES INCLUDING NEW YORK PHOENIX AND BIRMINGHAM ALA ARE AGITATING FOR THEM AND DEMAND IS BUILDING EVEN BEFORE THEIR CLINICAL VALUE IS FULLY KNOWN THIS OUTBREAK OF GAMMAMANIA REFLECTS A PARADOX IN AMERICAN MEDICINE A NATIONAL EAGERNESS TO EMBRACE THE FANCIEST NEW TECHNOLOGIES DESPITE RISING CONCERN ABOUT THE COST OF HEALTH CARE DOCTORS COVET THE PRESTIGE OF HAVING THE BEST EQUIPMENT DESPERATELY SICK PATIENTS HOPE FOR A BREAKTHROUGH THAT MIGHT SAVE THEM AND HOSPITALS ARE IN A MEDICAL ARMS RACE IF THEY DON'T HAVE THE LATEST GADGET STAR DOCTORS AND THEIR PATIENTS MAY BOLT FOR PEOPLE WORRIED BY RUNAWAY COSTS THE GAMMA KNIFE IS A TROUBLING CASE IT ALL COMES DOWN TO A RACE TO SEE WHO CAN HAVE THE BETTER TOYS CHARGES JAMES PROFFITT HEALTHBENEFITS MANAGER AT MCDONNELL DOUGLAS CORP OF ST LOUIS IF WE'RE EVER GOING TO GET COSTS UNDER CONTROL WE'VE GOT TO LEARN TO SHARE THE RESOURCES THAT WE ALREADY HAVE FRUGALITY SUCH AS THAT SHAPES MEDICALTECHNOLOGY USE IN OTHER COUNTRIES NOTABLY BRITAIN AND CANADA THERE GOVERNMENT BOARDS DECIDE WHICH MEDICAL CENTERS IF ANY WILL GET COSTLY NEW DEVICES TO DATE CANADIAN AUTHORITIES HAVEN'T APPROVED A SINGLE GAMMA KNIFE PURCHASE CANADIANS WANTING THE TREATMENT HAVE TO GO ABROAD BUT US DOCTORS AND HOSPITALS AREN'T HOBBLED THAT WAY AND BY AGGRESSIVELY RECRUITING PATIENTS PHYSICIANS OFTEN CAN CREATE DEMAND FOR COSTLY NEW SERVICES THAT THEY WANT THEIR HOSPITAL TO OFFER THAT IS ESPECIALLY TRUE WITH THE GAMMA KNIFE ARGUMENTS ABOUT EXCESS COSTS AND OVERCAPACITY KEEP GETTING TRAMPLED IN THE STAMPEDE LAST FALL MR PROFFITT OF MCDONNELL DOUGLAS LEARNED THE DIFFICULTY OF REINING IN THE HIGHTECH NEUROSURGERY HE TRIED TO BLOCK A GAMMA KNIFE PURCHASE IN KANSAS CITY ARGUING THAT THE FEW PATIENTS WHO NEEDED IT COULD GO TO MEDICAL CENTERS IN CHICAGO OR DENVER BUT WHEN A TOP NEUROSURGEON HINTED THAT HE MIGHT LEAVE KANSAS CITY IF HE DIDN'T GET A GAMMA KNIFE OPPOSITION TO THE PURCHASE COLLAPSED PEOPLE WANT BRAGGING RIGHTS LARRY ATKINS SAYS THEY WANT THE CHANCE TO SAY WE HAVE IT AND YOU DON'T' THAT'S FINE WITH MR ATKINS HE IS PRESIDENT OF AMERICAN HEALTH SERVICES CORP OF NEWPORT BEACH CALIF WHICH HAS A SUBSIDIARY THAT INSTALLS GAMMA KNIVES IN HOSPITALS DESPITE ITS NAME THE GAMMA KNIFE AVOIDS THE NEED TO OPEN PATIENTS' SKULLS AND CUT AWAY BRAIN TUMORS RATHER IT AIMS GAMMA RAYS FROM 201 TINY SOURCES OF RADIOACTIVE COBALT SO THAT THEY CONVERGE PRECISELY ON A TARGET WITHIN THE BRAIN PATIENTS WHILE AWAKE ARE SLIPPED INSIDE A FIVEFOOT DOME FOR 10 MINUTES TO THREE HOURS OF NEARLY PAINLESS TREATMENT THEY GENERALLY GO HOME IN A DAY OR SO OF ALL THE WAYS TO DELIVER RADIATION TO THE BRAIN THE GAMMA KNIFE IS THE MOST PRECISE AND MOST EXPENSIVE PERPATIENT CHARGES TYPICALLY RUN 10000 TO 25000 THE MACHINERELATED COST IS ABOUT HALF THE TOTAL THE REST GOING TO A SURGEON A RADIOLOGIST AND A PHYSICIST CONSULTANTS HIRED BY THE DEVICE'S MAKER ELEKTA INSTRUMENT AB OF SWEDEN SAY THOSE COSTS ARE LESS THAN HALF THE BILL FOR BRAIN SURGERY WHICH OFTEN INVOLVES A 10DAY HOSPITAL STAY THEY ALSO CONTEND COSTS ARE VERY CLOSE FOR THE GAMMA KNIFE AND ITS MAIN ALTERNATIVE THE LINEAR ACCELERATOR WHICH USES A SIMILAR BUT MORE CUMBERSOME METHOD OF AIMING RADIATION INTO THE BRAIN HOWEVER MISSOURI'S HEALTH FACILITIES REVIEW COMMITTEE SAYS LINEARACCELERATOR THERAPY IS FAR CHEAPER RUNNING ABOUT 6000 PER PATIENT LAST YEAR 2000 PATIENTS IN THE US GOT GAMMA KNIFE TREATMENT INSTEAD OF SURGERY ABOUT 40 HAD MALFORMED BLOOD VESSELS IN THEIR BRAINS THAT NEEDED TO BE DESTROYED MOST OF THE REST HAD DEEPSEATED ACOUSTIC NEUROMAS OR MENINGIOMAS TWO RARE KINDS OF BENIGN BRAIN TUMORS THAT CAN'T EASILY BE REMOVED WITH A SCALPEL WHETHER THE GAMMA KNIFE IS SUITABLE FOR A WIDER RANGE OF CASES IS CONTROVERSIAL ELEKTA IS PROMOTING IT AS A POTENTIAL BREAKTHROUGH FOR MANY KINDS OF BRAIN CANCER AND PERHAPS FOR EPILEPSY AND PARKINSON'S DISEASE AS WELL SOME NEUROSURGEONS AREN'T CONVINCED IT'S A TECHNOLOGY IN SEARCH OF A DISEASE ASSERTS ONE NEAL KASSELL OF THE UNIVERSITY OF VIRGINIA ONE OF THE MORE CONSERVATIVE USERS THE MAYO CLINIC IN ROCHESTER MINN BOUGHT A GAMMA KNIFE TWO YEARS AGO BUT USES IT ONLY ON ESPECIALLY TRICKY CASES INVOLVING IRREGULARLY SHAPED BRAIN LESIONS MAYO'S HEAD OF NEUROSURGERY ROBERT PIEPGRAS SAYS MOST BRAIN LESIONS CAN BE TREATED ELSEWHERE WITH A LINEAR ACCELERATOR BUT OTHER NEUROSURGEONS ARE EAGER TO EXPAND USE OF THE GAMMA KNIFE L DADE LUNSFORD IN PITTSBURGH IS TRYING IT ON PATIENTS WITH LUNG OR BREAST CANCER THAT HAS SPREAD TO THE BRAIN WHETHER THIS WILL IMPROVE THEIR SURVIVAL RATES ISN'T CLEAR WHICH IS WHY HE IS DOING CLINICAL TRIALS DR LUNSFORD THINKS THE DEVICE MAY HELP PATIENTS WITH AS MANY AS THREE BRAIN TUMORS THOUGH FRESH MALIGNANCIES OFTEN FORM SOON AFTER TREATMENT IF ALL GOES WELL HE SAYS THE DEVICE MIGHT BE USABLE ON AT LEAST 30000 US PATIENTS A YEAR SUCH ENTHUSIASM IS AT ITS PEAK IN SOUTHERN FLORIDA WHERE TWO NEARBY HOSPITALS ARE BATTLING TO SEE WHICH CAN MAKE THE MOST OF THE GAMMA KNIFE A MIDSIZE COMMUNITY HOSPITAL DOCTORS HOSPITAL IN CORAL GABLES ACTED FIRST INSTALLING ONE LAST OCTOBER ON MARCH 28 MIAMI'S BIGGEST TEACHING HOSPITAL JACKSON MEMORIAL MEDICAL CENTER ACTIVATED ITS GAMMA KNIFE OFFICIALS AT BOTH FACILITIES CONCEDE IT IS RIDICULOUS TO HAVE TWO SUCH SPECIALIZED MACHINES ONLY 10 MILES APART YET NEITHER WOULD DREAM OF YIELDING TO THE OTHER IN THE WORDS OF WILLIAM COMTE A SENIOR VICE PRESIDENT AT HEALTHSOUTH REHABILITATION CORP OF BIRMINGHAM ALA WHICH OWNS DOCTORS HOSPITAL DOES THIS GO AGAINST EVERYTHING YOU'RE SEEING IN HEALTH CARE TODAY YES IT'S CRAZY BUT WE THINK OUR PROGRAM HAS A GREAT DEAL OF CREDIBILITY THE 226BED HOSPITAL IN CORAL GABLES IS PINNING ITS HOPES ON AIZIK WOLF A 37YEAROLD SURGEON WHO HAILS THE GAMMA KNIFE AS THE GOLD STANDARD FOR NEUROSURGERY DR WOLF LEFT THE UNIVERSITY OF MARYLAND AND CAME HERE PARTLY FOR THE CHANCE TO RUN HIS OWN GAMMA KNIFE CENTER DR WOLF SAYS HE NOW CAN TACKLE THE MOST DIFFICULT CASES AND TREAT THEM HIS WAY THE SELFSTYLED MAVERICK SOMETIMES OPERATES THE MACHINE WHILE WEARING A GRAY SUIT INSTEAD OF GREEN SURGICAL GARB AND WHILE OTHERS KEEP GAMMA KNIFE PATIENTS IN THE HOSPITAL OVERNIGHT HE DISCHARGES THEM WITHIN HOURS OF TREATMENT EVEN LETS SOME DRIVE HOME SOME PHYSICIANS QUESTION WHETHER DR WOLF IS USING THE GAMMA KNIFE IN BORDERLINE CASES IN JANUARY HE USED IT ON A PATIENT WITH NINE MALIGNANT BRAIN TUMORS I DON'T THINK THAT'S AN ESPECIALLY GOOD CASE FOR TREATMENT SAYS DAVID LARSON A RADIATION ONCOLOGIST AT THE UNIVERSITY OF CALIFORNIA AT SAN FRANCISCO DR WOLF REPLIES WHY NOT GIVE A PATIENT LIKE THAT A CHANCE WHILE IT IS TOO EARLY TO KNOW FOR SURE HE THINKS THE PATIENT'S BRAIN CANCER HAS STABILIZED DR WOLF SAYS HIS CRITICS MAY HAVE THEIR OWN BIASES BECAUSE GREATER USE OF THE GAMMA KNIFE COULD MEAN LESS WORK FOR TRADITIONAL BRAIN SURGEONS THE NEUROSURGERY COMMUNITY WILL HAVE TO COME TO TERMS WITH HOW SUCCESSFUL THE GAMMA KNIFE WILL BE HE SAYS OPTIMISM SUCH AS HIS PLAYS WELL WITH PATIENTS FACING A DISEASE LIKE BRAIN CANCER MANY TRY ANYTHING THAT MIGHT WORK PATIENTS AND THEIR FAMILIES SOMETIMES TRACK DOWN GAMMA KNIFE CENTERS GUIDED BY MAGAZINE CLIPPINGS OR NEWSPAPER ADS DR WOLF'S HOSPITAL RUNS ADS IN FLORIDA NEWSPAPERS ADS THAT HELPED BRING IN 70 PATIENTS IN FIVE MONTHS ONE SHOWS A WORRIED MAN BEING HUGGED BY HIS WIFE A SENTENCE OR TWO ABOUT THE GAMMA KNIFE THE PHONE NUMBER FOR DOCTORS HOSPITAL AND THE LINE SINCE MY PHYSICIAN TOLD ME I HAVE A BRAIN TUMOR EVERY MOMENT COUNTS LAST AUTUMN LAURA ATTIAS SAW ONE OF THOSE ADS IN THE FLORIDA TIMESUNION OF JACKSONVILLE SHE GOT AN APPOINTMENT FOR HER 71YEAROLD HUSBAND MARVIN ALTHOUGH THE GAMMA KNIFE DIDN'T ENTIRELY STOP THE GROWTH OF HIS MALIGNANT BRAIN TUMOR HE AND HIS WIFE BOTH SAY DR WOLF IS TERRIFIC MEANWHILE IN MIAMI JACKSON MEMORIAL'S SURGEONS FELT THE LURE OF THE GAMMA KNIFE TOO EVEN AS DR WOLF'S PLANS WERE TAKING SHAPE IN 1992 SJ PEERLESS A NEUROSURGEON AT THE MIAMI HOSPITAL WROTE TO ITS CHIEF EXECUTIVE AND URGED HIM TO GET THE DEVICE DR PEERLESS PREDICTED THAT AFTER A TWOYEAR STARTUP IT COULD BRING IN AT LEAST 2 MILLION A YEAR IN PROFIT THAT WOULD BE AN IMPORTANT OPPORTUNITY FOR THE DEPARTMENTS OF NEUROSURGERY RADIATION THERAPY RADIOLOGY AND PARTICULARLY FOR THE PATIENTS OF SOUTH FLORIDA AND ABROAD HE WROTE JACKSON MEMORIAL PUSHED AHEAD WE WANTED TO BE THE HOSPITAL THAT WOULD OFFER ALL THE SERVICES SOMEONE NEEDED EXPLAINS GERARD KAISER A SENIOR VICE PRESIDENT THE DUPLICATION CAUSES QUALMS AT BOTH HOSPITALS IT'S TERRIBLE THAT THERE ARE TWO GAMMA KNIVES IN DADE COUNTY SAYS ALAN ROSENTHAL A JACKSON TRUSTEE THAT'S TWICE AS MANY AS WE NEED BUT IF YOU LOOK AT OUR FACILITIES I DON'T THINK ANY RESPONSIBLE PERSON WOULD SUGGEST THAT DOCTORS HOSPITAL SHOULD GET IT AND WE SHOULDN'T JACKSON OFFICIALS CITE THE WIDE RANGE OF HIGHTECH SERVICES THEY ALREADY PROVIDE INCLUDING HEART AND LIVER TRANSPLANTS DOCTORS HOSPITAL SAYS MARK COHEN A SPOKESMAN FOR JACKSON IS A COMMUNITY HOSPITAL THAT PROVIDES A LOT OF EXERCISE CLASSES FOR FAT LADIES IN THE MORNING DOCTORS OFFICIALS JAB BACK SAYING THEIR PROSPEROUS SUBURBAN ADDRESS WILL PULL IN A LOT OF PATIENTS UNEASY ABOUT JACKSON'S INNERCITY LOCATION SUCH RIVALRIES ARE GREAT FOR THE MAKER OF GAMMA KNIVES SINCE ELEKTA WENT PUBLIC IN EARLY MARCH IN SWEDEN ITS STOCK HAS SURGED NEARLY 30 ELEKTA ESTIMATES THAT REVENUE FOR THE YEAR ENDING APRIL 30 WILL BE UP 49 TO THE EQUIVALENT OF 64 MILLION WITH NET INCOME RISING EVEN MORE FOUR US COMPANIES NOW OFFER TO BUY GAMMA KNIVES AND INSTALL THEM IN HOSPITALS FREE IN RETURN FOR ABOUT 80 OF FUTURE PATIENT REVENUE JACKSON USED SUCH A DEAL MR ATKINS OF AMERICAN HEALTH SERVICES WHICH FINANCED DOZENS OF MAGNETICRESONANCEIMAGING MACHINES IN THE 1980S EXPECTS UP TO 50 GAMMA KNIVES TO BE INSTALLED EVENTUALLY IN THE US MOST GAMMA KNIVES CAN PAY THEIR WAY WITH JUST 100 PATIENTS A YEAR SAYS JERRY BROWN PRESIDENT OF ANOTHER FINANCING COMPANY US NEUROSURGICAL INC A UNIT OF GHS INC OF ROCKVILLE MD THAT MEANS USING EACH MACHINE AT LESS THAN 30 OF CAPACITY HE SAYS BUT WITH REIMBURSEMENT RATES USUALLY AT 15000 OR MORE PER PATIENT IT DOESN'T TAKE MANY THE PICTURE COULD DIM IF INSURERS BALKED AT COVERING GAMMA KNIFE SERVICES BUT SO FAR MOST HAVE BEEN WILLING TO PAY ESPECIALLY SINCE CASES TO DATE USUALLY HAVE INVOLVED BENIGN TUMORS OR BLOODVESSEL MALFORMATIONS WHERE GAMMA KNIFE TREATMENT IS AN ALTERNATIVE TO EVENCOSTLIER OPENSKULL SURGERY IT IS UNCLEAR WHAT WILL HAPPEN IF THE GAMMA KNIFE INSTEAD OF CHEAPER FORMS OF BRAIN RADIATION IS USED MORE OFTEN ON MALIGNANT TUMORS HOWARD LUNDY A JACKSON MEMORIAL BRAIN SURGEON SAYS HE HAS THOUGHT A LOT ABOUT THE ACCUSATION THAT THE GAMMA KNIFE REPRESENTS MEDICAL EXCESS BUT HE DOESN'T LET IT TROUBLE HIM PEOPLE WANT TO CRITICIZE US FOR HAVING TOO MUCH HIGHTECH MEDICINE DR LUNDY REMARKS BUT I DON'T HEAR PEOPLE COMPLAINING THAT THERE ARE TOO MANY BRANDS OF LIGHT BEER OR TOO MANY PRO ATHLETES MAYBE SOME OF THE CRITICISM ABOUT MEDICINE BEING OVERBUILT NEEDS TO BE TAKEN IN PERSPECTIVE OF ALL THE OTHER PARTS OF THE ECONOMY THAT ARE OVERBUILT TOO 9404200019 940420 INTERNATIONAL BRIEF JAPAN AIRLINES FIRM OUTLINES PLAN TO CUT WORK FORCE OVER 4 YEARS JAPAN AIRLINES ANNOUNCED DETAILS OF ITS PREVIOUSLY ANNOUNCED PLAN TO SLASH ITS WORK FORCE OVER FOUR YEARS INCLUDING AN EXPANSION OF ITS EARLYRETIREMENT PROGRAM SHARP CUTS IN GROUNDSTAFF JOBS AND A GREATER EMPHASIS ON NONJAPANESE CREWS JAL ANNOUNCED IN JANUARY IT WOULD CUT ITS WORK FORCE TO ROUGHLY 17000 BY MARCH 1998 FROM 21650 WORLDWIDE AT THAT TIME THE COMPANY SAID TUESDAY IT WILL SLASH 3300 GROUND STAFF JOBS ABOUT 900 CABIN ATTENDANTS AND APPROXIMATELY 50 COCKPIT CREW MEMBERS TO BRING ITS TOTAL WORK FORCE DOWN TO ABOUT 17400 THE COMPANY SAID IT WILL EXPAND THE ELIGIBLE BRACKET FOR THE SPECIAL EARLYRETIREMENT PROGRAM IT INTRODUCED LAST YEAR TO 30 THROUGH 58 YEARS OLD FROM ITS PRIOR TARGET OF 3544 YEARS OLD JAL SAID ITS LABOR CUTS WILL BE MADE THROUGH NATURAL RETIREMENT RESTRAINTS ON NEW HIRING TRANSFERS AND ITS SPECIAL EARLYRETIREMENT PROGRAM 9404200018 940420 CORRECTIONS & AMPLIFICATIONS THE NEXT MEETING OF FEDERAL RESERVE POLICY MAKERS IS SCHEDULED FOR MAY 17 IN YESTERDAY'S ARTICLE ABOUT THE FED RAISING SHORTTERM INTEREST RATES THE DATE WAS GIVEN INCORRECTLY COMPAQ COMPUTER CORP HAS ANNOUNCED PLANS TO BEGIN USING CHIPS MADE BY ADVANCED MICRO DEVICES INC BUT ISN'T YET SELLING MACHINES BASED ON THOSE MICROPROCESSORS AN ITEM IN YESTERDAY'S ADVERTISING COLUMN INCORRECTLY REPORTED THAT COMPAQ HAS BEEN USING ADVANCED MICRO CHIPS SINCE JANUARY AND HAS ALREADY CHANGED ITS ADVERTISING SHARES OF FEDERAL HOME LOAN MORTGAGE CORP OR FREDDIE MAC CLOSED MONDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AT 55375 A SHARE UP 375 CENTS AN ARTICLE YESTERDAY ABOUT FREDDIE MAC'S EARNINGS INCORRECTLY GAVE THE STOCK PRICE OF FEDERAL NATIONAL MORTGAGE ASSOCIATION OR FANNIE MAE 9404200017 940420 COMMODITIES PRECIOUS METALS FUTURES PRICES TUMBLE AGAIN WITH GOLD CLOSING AT LOWEST LEVEL SINCE DECEMBER BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL PRECIOUS METALS FUTURES PRICES PLUNGED FOR THE SECOND DAY IN A ROW AS POLITICAL TENSIONS IN SOUTH AFRICA EASED AND CONCERN PERSISTED ABOUT THE POSSIBILITY OF FURTHER RISES IN US INTEREST RATES GOLD FUTURES PRICES LED THE DECLINE WITH GOLD FOR JUNE DELIVERY CLOSING AT ITS LOWEST LEVEL SINCE LAST DECEMBER AT NEW YORK'S COMMODITY EXCHANGE JUNE GOLD ENDED AT 37320 AN OUNCE DOWN 530 SILVER PRICES ALSO DROPPED IN HEAVY TRADING ON THE COMEX WITH THE MAY CONTRACT FINISHING AT 5212 AN OUNCE OFF 55 CENTS ON THE NEW YORK MERCANTILE EXCHANGE PLATINUM FUTURES TUMBLED AS PLATINUM FOR JULY DELIVERY SETTLED AT 38860 AN OUNCE DOWN 5 PRECIOUS METALS ANALYSTS SAID LARGE COMMODITY AND HEDGE FUNDS APPEARED TO ACCOUNT FOR MOST OF THE SELLOFF AS KEY TECHNICAL SUPPORT LEVELS WERE BROKEN GEORGE MILLINGSTANLEY AN ANALYST AT LEHMAN BROTHERS INC IN NEW YORK SAID A NUMBER OF FUNDS HAD STANDING ORDERS IN PLACE TO SELL GOLD WHEN THE PRICE FELL TO 375 AN OUNCE THAT LEVEL WAS REACHED QUITE QUICKLY AND SO YOU SAW THE PRICE HIT 373 IN SHORT ORDER ON THE LIQUIDATION PRESSURE HE SAID IN PAST CORRECTIONS PHYSICAL DEMAND FROM USERS OF THE PRECIOUS METAL HAS EMERGED TO BUOY FUTURES PRICES SAID DENISE GIORDANO DIRECTOR OF BULLION TRADING AT SWISS BANK CORP THAT KEY INGREDIENT IS MISSING RIGHT NOW SHE SAID WHILE NEWS OF A SETTLEMENT THAT WILL ALLOW SOUTH AFRICA'S ZULUS TO PARTICIPATE IN NEXT WEEK'S GENERAL ELECTIONS HAD A NEGATIVE EFFECT ON THE PRICES OF BOTH GOLD AND PLATINUM MARKETS IGNORED REPORTS OF MORE VIOLENCE AND A LARGE PROTEST RALLY IN THAT COUNTRY THE MARKET CHOSE TO LOOK FOR THE BAD' NEWS AND IT FOUND IT SAID MR MILLINGSTANLEY NOTING THAT THE POTENTIAL FOR UNREST IN THE BALKANS AND THE COUNTRIES OF THE FORMER SOVIET UNION AS WELL AS SOUTH AFRICA COULD HELP BOOST PRICES IN THE LONG RUN WILLIAM O'NEILL CHIEF FUTURES STRATEGIST AT MERRILL LYNCH & CO IN NEW YORK SAID CONCERN ABOUT MORE LIQUIDATION OF PRECIOUS METALS HOLDINGS BY FUNDS LINGERS IN THE MARKET WE'D LOOK FOR GOLD TO RESUME ITS DOWNWARD MARCH WHEN MARKETS OPEN TODAY HE ADDED TECHNICAL ANALYSTS SAID GOLD COULD TEST NEW SUPPORT LEVELS OF 370 TO 366 AN OUNCE BUT WE FIGURE THAT THE METALS ARE LOOKING OVERSOLD RIGHT NOW ON A TECHNICAL BASIS ADDED SCOTT MEYERS ANALYST AT REDEL TRADING CO IN OTHER COMMODITY MARKETS GRAIN IN WHAT APPEARED TO BE A CLASSIC CASE OF BUYING ON THE RUMOR AND SELLING ON THE NEWS INVESTORS SENT THE PRICE OF WHEAT FUTURES LOWER AFTER ABSORBING NEWS OF AN 800000 TON PURCHASE BY CHINA ON THE CHICAGO BOARD OF TRADE JULY SOFT RED WINTER WHEAT DROPPED 45 CENTS TO END AT 31425 A BUSHEL WHILE HARD RED WINTER WHEAT FOR JULY DELIVERY ON THE KANSAS CITY BOARD OF TRADE FELL 425 CENTS TO 31425 A BUSHEL DANIEL BASSE MARKET RESEARCH DIRECTOR AT AGRESOURCE CO OF CHICAGO NOTED THAT IN THE ABSENCE OF ADDITIONAL EXPORT ORDERS OR NEGATIVE NEWS ABOUT THE WEATHER INVESTORS TEND TO PUSH DOWN WHEAT FUTURES PRICES WE'RE MOVING DOWN TO THE 300 LEVEL FOR WHEAT FUTURES BUT THE HARVEST IS STILL TWO MONTHS AWAY AND A LOT CAN HAPPEN HE ADDED MR BASSE NOTED THAT A SURGE IN THE PRICE OF PALM OIL AS WELL AS ONGOING CONCERNS ABOUT DELAYS IN BRAZILIAN SHIPMENTS REACHING EXPORT MARKETS HELPED PROPEL SOYBEAN AND SOY OIL PRICES HIGHER ON THE CHICAGO BOARD OF TRADE THE JULY SOYBEAN CONTRACT ENDED AT 6585 A BUSHEL UP 375 CENTS WHILE CORN FUTURES FOLLOWED WHEAT LOWER LUMBER LUMBER FUTURES PRICES CONTINUED TO SLUMP ON THE CHICAGO MERCANTILE EXCHANGE WITH THE MAY CONTRACT ENDING AT 32690 PER 1000 BOARD FEET DOWN 710 ONCE SET IN MOTION THIS MARKET HAS BEEN SLOW TO PULL UP AGAIN SAID LORENZO BUD MERRILL A LUMBER ANALYST WITH SMITH BARNEY SHEARSON IN EUGENE ORE EVERY TIME BUYING INTEREST COMES CLOSE TO REEMERGING IT'S SCARED AWAY BY EVENTS LIKE MONDAY'S TIGHTENING OF INTEREST RATES BY THE US FEDERAL RESERVE MR MERRILL SAYS LUMBER PRICES COULD FALL BACK TO THE 290 LEVEL BUT HE EXPECTS DEMAND FROM DISTRIBUTION YARDS AND WHOLESALERS TO EMERGE AT THE 300 TO 320 LEVEL AS THESE PLAYERS SEEK TO ADD TO THEIR DEPLETED INVENTORIES 9404200016 940420 CREDIT MARKETS TREASURYS RISE AS SUPPORTIVE ECONOMIC NEWS HELPS BONDS RECOVER FROM MONDAY'S TUMBLE BY THOMAS D LAURICELLA AND LAUREN YOUNG SPECIAL TO THE WALL STREET JOURNAL NEW YORK PRICES OF US TREASURY SECURITIES GAINED YESTERDAY AS SUPPORTIVE ECONOMIC NEWS ENCOURAGED BUYERS AND HELPED THE MARKET RECOVER A LITTLE FROM MONDAY'S SWOON THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 1/2 POINT OR MORE THAN 5 FOR A BOND WITH A 1000 FACE VALUE TO 86 17/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE DROPPED TO 737 FROM 742 MONDAY DESPITE THE BETTER TONE IN THE BOND MARKET INVESTORS SAID THEY REMAIN EXTREMELY WARY OF INVESTING NEW CASH BECAUSE THE FEDERAL RESERVE SEEMS LIKELY TO CONTINUE RAISING SHORTTERM INTEREST RATES TRADERS ADDED THAT WHILE THEY FEEL A TEMPORARY FLOOR MAY BE IN PLACE FOR BOND PRICES THEY WILL BE LOOKING TO SELL SECURITIES IF THE MARKET CONTINUES TO RALLY PORTFOLIOS ARE TOO SCARED TO GET INVOLVED ON THE FIRST SIGN OF A MINOR BOUNCE THEY HAVE BEEN BURNED TOO MANY TIMES SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS I WOULDN'T BET THE RANCH THAT THIS IS THE BEGINNING OF A TURNAROUND GLENN INSLEY A SENIOR VICE PRESIDENT IN THE CAPITALMANAGEMENT GROUP OF FIRST UNION NATIONAL BANK OF NORTH CAROLINA ARGUED THAT ALTHOUGH THE LONGERTERM PROSPECTS FOR BONDS ARE BETTER NOW THAT THE FEDERAL RESERVE HAS BEEN RAISING INTEREST RATES THE MARKET REMAINS VULNERABLE TO SUDDEN DECLINES NEAR TERM THERE IS SOME RISK OF ANOTHER DOWNDRAFT HE SAID THE FUNDAMENTALS LOOK LIKE THE ECONOMY IS NOT OUT OF CONTROL AND INFLATION ISN'T OUT OF CONTROL BUT THE MARKET IS DRIVEN BY PSYCHOLOGY HE SAID DEALERS SAID THAT MOST OF YESTERDAY'S RALLY WAS THE RESULT OF TRADERS REVERSING SHORT SALES WHICH INVOLVED THE PURCHASE OF SECURITIES THEY HAD PREVIOUSLY SOLD IN A BET THAT PRICES WOULD FALL SOME TRADERS HAD EXPECTED THE MARKET WOULD EXTEND THE DECLINES POSTED MONDAY MOST OF THE SHORT COVERING TOOK PLACE IN SECURITIES MATURING IN 10 YEARS AND LONGER AS SHORTTERM SECURITIES REMAINED CAPPED BY FEARS OF FURTHER FED INTERESTRATE INCREASES DATA SUGGESTING THAT FIRSTQUARTER ECONOMIC GROWTH MAY NOT BE AS STRONG AS SOME BOND INVESTORS HAD FEARED PUSHED PRICES UP DURING EARLY TRADING THE COMMERCE DEPARTMENT REPORTED THE TRADE DEFICIT WIDENED TO 1236 BILLION IN FEBRUARY FROM 1017 BILLION IN JANUARY HIGHER IMPORTS ANALYSTS SAID WILL END UP DETRACTING FROM REAL GROSSDOMESTICPRODUCT GROWTH IN THE FIRST QUARTER ANALYSTS SAID VIRTUALLY EVERYBODY LOWERED THEIR FORECASTS FOR FIRSTQUARTER GROWTH TO VARYING DEGREES SAID DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES BASED ON THE TRADE DATA MR FINE SAID HE TRIMMED HIS ESTIMATE FOR GDP GROWTH TO ABOUT A 34 RATE FOR THE FIRST THREE MONTHS OF THE YEAR FROM A 38 FORECAST FOLLOWING THE TRADE REPORT DEALERS REPORTED LIGHT BUYING FROM LONGERTERM INVESTORS THAT HELPED GIVE THE MARKET SOME OF ITS BETTER TONE MR FINE SAID THE MARKET DIPPED AT MIDAFTERNOON FOLLOWING COMMENTS FROM ROBERT PARRY PRESIDENT OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO SUGGESTING THAT ADDITIONAL INCREASES IN SHORTTERM INTEREST RATES WILL BE NECESSARY MR PARRY SAID SHORTTERM INTEREST RATES REMAIN AT LEVELS THAT STIMULATE ECONOMIC GROWTH BUT PRICES QUICKLY RECOVERED AND THE BOND MARKET WAS ABLE TO FINISH NEAR ITS HIGHS FOR THE DAY TRADERS WILL BE TURNING THEIR ATTENTION TO A NEW ROUND OF ISSUANCE OF GOVERNMENT DEBT THE TREASURY DEPARTMENT IS SCHEDULED TO ANNOUNCE TODAY THE SIZE OF NEXT WEEK'S TWOYEAR AND FIVEYEAR NOTE AUCTIONS SOME ANALYSTS SAY THE TREASURY MAY CUT THE SIZE OF THE TWO OFFERINGS CITIZENS UTILITIES CO WAS THE ONLY ISSUER TO JUMP INTO THE CORPORATE BOND MARKET YESTERDAY THE COMPANY SOLD 175 MILLION OF 12YEAR DEBENTURES CITIZENS UTILITIES WAITED A DAY TO SELL ITS DEBENTURES AFTER TREASURY PRICES PLUNGED MONDAY SAID LEONARD TOW CHAIRMAN AND CHIEF FINANCIAL OFFICER OF THE STAMFORD CONN UTILITY THE DEBENTURES WERE SOLD AT PAR TO YIELD 760 THROUGH LEAD MANAGER LEHMAN BROTHERS PROCEEDS FROM THE OFFERING WILL BE USED TO FUND THE 11 BILLION ACQUISITION OF 500 TELEPHONEACCESS LINES FROM GTE CORP MR TOW SAID ONETHIRD OF THAT ACQUISITION IS TO BE FUNDED WITH DEBT HE SAID SYNDICATE OFFICIALS IN BOTH THE INVESTMENTGRADE AND JUNKBOND MARKETS EXPECT NEW ISSUANCE TO REMAIN THIN THROUGH THE MIDDLE OF MAY AS THE FEDERAL RESERVE IS EXPECTED TO BOOST SHORTTERM INTEREST RATES FOR THE FOURTH TIME THIS YEAR TRADING IN THE SECONDARY MARKETS WAS EXTREMELY LIGHT DURING THE SESSION WITH INVESTMENTGRADE PRICES FOLLOWING TREASURYS HIGHER WITH YIELD SPREADS UNCHANGED RATINGS ACTIONS HAD LITTLE IMPACT ON THE ISSUES OUTSTANDING OF THE BIG THREE AUTO MAKERS TRADERS SAID STANDARD & POOR'S RAISED ITS SENIORDEBT RATINGS OF CHRYSLER CORP CHRYSLER FINANCIAL CORP AND AUBURN HILLS TRUST WHICH IS GUARANTEED BY CHRYSLER TO TRIPLEBPLUS FROM TRIPLEB S&P AFFIRMED FORD MOTOR CO'S RATINGS AND SAID THE COMPANY'S OUTLOOK REMAINS STABLE FORD'S SENIOR DEBT IS RATED SINGLEA THE RATINGS AGENCY ALSO REVISED GENERAL MOTORS CORP'S OUTLOOK TO POSITIVE FROM NEGATIVE AND AFFIRMED GM'S TRIPLEBPLUS SENIOR DEBT RATING DESPITE RECENT TURMOIL INVESTORS SEEMED ANXIOUS TO GOBBLE UP MUNICIPALS PRICED YESTERDAY IN THE CASE OF THE PUERTO RICO ELECTRIC POWER AUTHORITY'S SERIES T AND SERIES S BONDS PRICED BY A BEAR STEARNS & CO GROUP DEMAND WAS SO STRONG THAT THE OFFERING WAS RAISED TO 5379 MILLION FROM THE INITIAL 4778 MILLION AND YIELDS FOR SOME BONDS WERE LOWERED FIVE BASIS POINTS THERE WAS ALSO A WARM RECEPTION FOR THE SAN FRANCISCO CITY AND COUNTY AIRPORTS COMMISSION'S 90 MILLION REVENUE BONDS WHICH WERE WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 651 THE BONDS SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX HAVE YIELDS THAT RANGE FROM 45 IN 1996 TO 66 IN 2024 WHILE THERE WAS SOLID DEMAND FOR SEVERAL NEW ISSUES AGGRESSIVE BUYING OF PUERTO RICO SECURITIES IS NOTHING NEW THAT'S BECAUSE MUCH OF THE DEBT ISSUED BY THE COMMONWEALTH ITS MUNICIPALITIES AND PUBLIC CORPORATIONS BEARS INTEREST EXEMPT FROM US LOCAL STATE AND FEDERAL TAXES WHILE YESTERDAY'S NEW ISSUES ATTRACTED PLENTY OF PURCHASERS THERE WASN'T HEAVY BUYING IN THE SECONDARY MARKET THE UTAH INTERMOUNTAIN POWER AGENCY'S 5 OF 2023 BONDS WERE QUOTED ABOUT 1/8 POINT LOWER IN LATE TRADING AT 80 5/8 YIELDING 643 THE MORTGAGE MARKET GAINED A LITTLE GROUND BUT WITHOUT THE HELP OF ANY SIGNIFICANT BUYING BY INSTITUTIONAL OR RETAIL INVESTORS TRADERS SAID HOWEVER NO SIGNIFICANT SELLING WAS REPORTED EITHER INSTEAD DESKS ENGAGED IN SOCALLED PAIROFF BUYING WITH MORTGAGE BANKERS AN INVESTMENTBANK TRADER SAID A PAIROFF TRANSACTION OCCURS WHEN A BANKER CAN'T DELIVER MORTGAGE SECURITIES AS PLANNED AND INSTEAD HAS TO BUY SECURITIES BACK FROM A DEALER ON THE DAY YIELDS OF MOST MORTGAGE SECURITIES TIGHTENED RELATIVE TO YIELDS ON THEIR TREASURY COUNTERPARTS FOLLOWING A WIDENING ON MONDAY OF TWO TO THREE BASIS POINTS MORTGAGE SECURITIES LOSE VALUE WHEN SPREADS WIDEN THE MARKET IS RECOVERING A LITTLE BIT SAID LAKHBIR HAYRE DIRECTOR OF MORTGAGE RESEARCH AT PRUDENTIAL SECURITIES INC WHEN SOMETHING LIKE A RATE TIGHTENING OCCURS THE MARKET TENDS TO OVERREACT AND CORRECT A BIT THE NEXT DAY IN LATE TRADING THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 8S FOR MAY DELIVERY WAS UP 2/32 AT 99 15/32 THE FEDERAL HOME LOAN MORTGAGE CORP GOLD 8S FOR MAY WAS UP 5/32 AT 99 25/32 THE FEDERAL NATIONAL MORTGAGE ASSOCIATION 8S FOR MAY WAS UP 5/32 AT 99 20/32 AND THE TREASURY 5 7/8 10YEAR NOTE A BENCHMARK FOR MORTGAGE SECURITIES WAS UP 9/32 AT 91 14/32 9404200015 940420 TEXAS JOURNAL COURT DEALS ANOTHER SETBACK TO SMALL OIL BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL AS IF SMALL ENERGY PRODUCERS DIDN'T HAVE ENOUGH PROBLEMS FROM LOW CRUDEOIL PRICES TO DECLINING CLOUT IN WASHINGTON NOW COMES A LOSING COURT DECISION ON AN ISSUE THAT HAS BEEN RAGING ON AND OFF FOR SIX DECADES IN A REVERSAL OF ITS OWN AUGUST 1993 DECISION THE THIRD COURT OF APPEALS IN AUSTIN LAST WEEK STRUCK DOWN THE TEXAS RAILROAD COMMISSION'S STRICT PRODUCTION LIMITS FOR THE GIANT EAST TEXAS FIELD THE SECONDLARGEST OIL FIELD IN THE US SMALLER COMPANIES ARE FURIOUS ARGUING THAT THE LARGER OIL COMPANIES WITH THE BEST GEOGRAPHIC POSITIONS ARE SUCKING OUT ALL THE OIL LEAVING LITTLE FOR EVERYBODY ELSE MY LEASE IS DECLINING RAPIDLY SAYS WILLIAM PAYNE OWNER OF PAYNEJOHNSTON OIL CO OF ABILENE WHICH OWNS 13 WELLS IN THE FIELD I'M GETTING MORE WATER AND LESS OIL THE RAILROAD COMMISSION HAS UNTIL A WEEK FROM TOMORROW TO DECIDE WHETHER TO ASK THE COURT FOR A REHEARING IF THE REQUEST IS DENIED THE COMMISSION MAY APPEAL TO THE STATE SUPREME COURT RAILROAD COMMISSION CHAIRMAN JAMES NUGENT SAYS HE BELIEVES THE THREEMEMBER COMMISSION WILL VOTE TO APPEAL WE'RE CHARGED WITH PREVENTING WASTE SAYS MR NUGENT REFERRING TO THE FACT THAT OIL IN THE FIELD IS PUSHED THROUGH THE GROUND BY UNDERLYING WATER WE NEED TO PREVENT RAPID WATER MOVEMENT WHICH WOULD LEAVE OIL TRAPPED AND RESULT IN WASTE THE ISSUE IS A PASSIONATE ONE FOR SMALLER INDEPENDENT OIL COMPANIES WHICH UNABLE TO MAKE ENDS MEET SINCE OIL PRICES HAVE DECLINED FROM A HIGH OF 21 LAST MARCH TO BELOW 17 ARE CUTTING SALARIES LAYING OFF STAFF AND SHUTTING WELLS BEGGING FOR RELIEF THE INDEPENDENTS HAVE BEEN PUSHING IN WASHINGTON FOR TAX BREAKS AND IMPORT FEES ON FOREIGN OILSO FAR WITHOUT SUCCESS MOREOVER MANY OF THEM CONSIDER THE LEGENDARY 7300WELL EAST TEXAS FIELD WHICH RUNS NORTHSOUTH WITH KILGORE AT THE CENTER NOTHING LESS THAN A STATEWIDE NATURAL RESOURCE THE EAST TEXAS OIL FIELD IS REGARDED AS GOD'S ENDOWMENT TO THE AREA SO THERE'S A LOT OF FEAR THAT IT WILL DECLINE SAYS WACO ECONOMIST M RAY PERRYMAN WHO WAS HIRED BY THE LARGER OIL COMPANIES TO STUDY THE ECONOMIC IMPACT OF THE PRODUCTION LIMITS IT'S ALMOST LIKE IF SMALLER OIL COMPANIES HAD THEIR WAY THEY WOULDN'T TAKE ANYTHING OUT OF IT AT ALL NOT SURPRISINGLY EACH SIDE ARGUES THAT THE ACTION IT SUPPORTS WILL RESULT IN LESS WASTE WHILE THE RAILROAD COMMISSION WHICH HAS TAKEN THE SIDE OF THE SMALLER COMPANIES SAYS ELIMINATING THE LIMITS WILL RESULT IN SOME OIL REMAINING NEEDLESSLY TRAPPED IN THE GROUND THE MAJOR COMPANIES SAY PRODUCING THE FIELD TOO SLOWLY WILL LEAVE OIL BEHIND THE COURT RULED IN FAVOR OF THE MAJORS CLAIMING THAT THE COMMISSION NEVER BACKED UP ITS CLAIMS THE DECISION WRITTEN BY JUDGE J WOODFIN JONES ALSO ARGUES THAT IT IS DOUBTFUL THAT THE COMMISSION HAS ANY AUTHORITY TO USE RULES AT ALL TO PROTECT THE UNDERGROUND PROPERTY RIGHTS OF OIL PRODUCERS THE QUESTION OF HOW MUCH OIL CAN BE SUCKED OUT OF THE EAST TEXAS FIELD WITHOUT DAMAGING IT WAS DEBATED NEARLY AS SOON AS IT WAS DISCOVERED IN 1930 PEOPLE BEGAN SETTING UP OIL WELLS EVERYWHERE EVEN KNOCKING DOWN BUILDINGS TO MAKE ROOM TO DRILL BY AUGUST 1931 DRILLING RIGS WERE POPPING UP SO FAST THAT TEXAS GOV ROSS STERLING DECLARED MARTIAL LAW AND SENT THE NATIONAL GUARD TO SHUT DOWN THE FIELD TEMPORARILY THE RAILROAD COMMISSION STEPPED IN TO LIMIT PRODUCTION AND AFTER A LENGTHY COURT BATTLE ITS AUTHORITY TO DO SO WAS UPHELD BY A FEDERAL COURT IN 1934 TODAY'S BATTLES ARE OVER RULES THE COMMISSION MADE YEARS LATER IN 1972 WHICH CAPPED PRODUCTION IN THE EAST TEXAS FIELD AT 17 BARRELS A DAY PER WELL A GROUP OF OIL COMPANIES INCLUDING MOBIL CORP ATLANTIC RICHFIELD CO AND THE OXY USA INC UNIT OF OCCIDENTAL PETROLEUM CORP FILED A LAWSUIT DEMANDING THAT THE LIMIT BE RAISED TO 20 BARRELS A DAY IRONICALLY IN THE 1930S IT WAS THE MAJOR OIL COMPANIES THAT WANTED TO LIMIT PRODUCTION TO KEEP THE PRICE OF OIL FROM FALLING TODAY THE SMALLER COMPANIES WANT THE LIMITS FOR ONE THING THEY WANT TO KEEP THE FIELD ECONOMICALLY VIABLE FOR AS LONG AS POSSIBLE ANOTHER REASON SAY RAILROAD COMMISSION STAFFERS IS THAT THE LARGER COMPANIES OWN THE BETTER LEASES ATOP A HILL ON THE FIELD'S NORTHEAST SIDE WHILE THE SMALLER COMPANIES OWN THE LESSATTRACTIVE PROPERTIES THAT WILL DRY UP FIRST ANOTHER REASON SAYS MICKEY D SMITH PRESIDENT OF THE EAST TEXAS PRODUCERS AND ROYALTY OWNERS ASSOCIATION AND FORMER MAYOR OF KILGORE IS THAT THE MAJOR OIL COMPANIES WANT CASH FLOW TO EXPLORE OPPORTUNITIES ABROAD THE MAJORS WANT TO GET IN AND GET OUT HE SAYS THEY ARE NOT CONCERNED WITH THE LONGEVITY OF THE FIELD THE SMALL PRODUCERS AND THE PEOPLE WHO HAVE LIVED HERE ALL OF OUR LIVES WANT TO PROLONG THE FIELD AS LONG AS POSSIBLE SCHOOL DISTRICTS TOO ARE INVOLVED CLAIMING THAT DEPLETION OF THE FIELD IS ERODING THEIR TAX BASE DESPITE A FINDING BY MR PERRYMAN THAT SCHOOL DISTRICTS WILL GET 167 MILLION A YEAR MORE FROM THE ADDITIONAL THREE BARRELS A WELL AND THAT A TOTAL OF 65 MILLION A YEAR IS PUMPED INTO THE ECONOMY AS A RESULT OF HIGHER PRODUCTION INSTEAD OF IMMEDIATE GAINS WE PREFER A LONGTERM EXTENSION OF THE FIELD'S LIFE SAYS MARC WILLIAMSON SUPERINTENDENT OF THE PINE TREE INDEPENDENT SCHOOL DISTRICT THAT ARGUMENT SAY THE MAJORS AND SEVERAL LARGER INDEPENDENT OIL COMPANIES WHO ARE ALSO AGAINST STRICT LIMITS IS NONSENSE NOWHERE IS IT STATED THAT THE RAILROAD COMMISSION'S JOB IS TO MAKE OIL FIELDS LAST FOREVER SAYS GREG HARDIN OPERATIONS MANAGER AT OXY USA IF THAT WERE THE CASE WE'D PRODUCE ONE BARREL A YEAR DESPITE CLAIMS BY SMALL COMPANIES THAT THE FIELD WILL LAST ONLY ANOTHER DECADE AT MOST OXY AND OTHER LARGER COMPANIES PREDICT IT WILL LAST 30 OR 40 YEARS MR HARDIN CONCEDES THAT PUMPING FASTER WILL CUT A FEW YEARS OFF THE LIFE OF THE FIELD BUT HE SAYS THE EFFECT WILL BE NEGLIGIBLE 9404200013 940420 CORPORATE FOCUS KEMPER IS FAILING TO WIN SUPPORT AGAINST TAKEOVER BID MANY HOLDERS ARE INCLINED TO VOTE FOR GE CAPITAL'S NOMINEES TO BOARD BY GREG STEINMETZ AND STEVEN LIPIN STAFF REPORTERS OF THE WALL STREET JOURNAL KEMPER CORP'S BID TO STAY INDEPENDENT IS GETTING A FROSTY RECEPTION FROM SHAREHOLDERS WITH MANY SAYING THAT THEY ARE INCLINED TO VOTE IN FAVOR OF GE CAPITAL'S NOMINEES FOR KEMPER'S BOARD GIVEN THE SHAREHOLDER MOOD KEMPER'S ONLY HOPE MAY BE TO FIND A WHITE KNIGHT TO SAVE IT FROM GE CAPITAL'S TAKEOVER BID ANALYSTS SAID BUT INTEREST APPEARS SLIGHT ALLIANZ AG HOLDING A GIANT GERMAN INSURANCE COMPANY THAT OWNS FIREMAN'S FUND IS INTERESTED BUT IS BALKING AT THE PRICE SAID A PERSON FAMILIAR WITH ALLIANZ'S PLANS ANOTHER WOULDBE BIDDER AMERICAN INTERNATIONAL GROUP INC HAS DECIDED AGAINST MAKING A BID FOR KEMPER WHOSE OPERATIONS INCLUDE MUTUAL FUNDS LIFE INSURANCE AND BROKERAGE GE CAPITAL THE FINANCIAL SERVICES UNIT OF GENERAL ELECTRIC CO HAS PROPOSED BUYING KEMPER FOR 22 BILLION OR 55 A SHARE KEMPER HAS REJECTED THE OFFER AND HAS REFUSED TO NEGOTIATE GE HAS RESPONDED BY PUTTING UP ITS OWN SLATE OF DIRECTORS FOR KEMPER'S BOARD FOUR OF KEMPER'S 13 BOARD SEATS COME UP FOR ELECTION MAY 11 LAST WEEK KEMPER CHAIRMAN DAVID MATHIS AND PRESIDENT STEPHEN TIMBERS HIT THE CAMPAIGN TRAIL TRYING TO PERSUADE FUND MANAGERS TO VOTE FOR KEMPER'S SLATE OF DIRECTORS INSTEAD OF GE'S ON FRIDAY FOR INSTANCE THE PAIR MET WITH FUND MANAGERS AT THE OFFICES OF NEUBERGER & BERMAN A NEW YORK MONEY MANAGEMENT FIRM AFTER LISTENING TO THE EXECUTIVES' PLANS FOR BOOSTING KEMPER'S PROFITS A NEUBERGER OFFICIAL ASKED WHETHER ANYONE IN ATTENDANCE PLANNED TO VOTE IN FAVOR OF KEMPER NOBODY RAISED THEIR HAND KEMPER STOCKHOLDERS SAID THEY HAVE LITTLE CHOICE BUT TO VOTE FOR GE BECAUSE THEY BELIEVE THAT KEMPER STOCK WILL FALL SHARPLY IF MANAGEMENT WINS THE VOTE MOST FIDUCIARIES WILL BE HARD PRESSED TO VOTE AGAINST GE SAID UDAYAN GHOSE OF OMEGA ADVISORS WHICH OWNS 300000 KEMPER SHARES IF GE LOSES THE STOCK WOULD GO DOWN 10 POINTS IT COMES DOWN TO SOMETHING AS SIMPLE AS THAT YESTERDAY KEMPER SHARES CLOSED AT 56 DOWN 50 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING BRIAN WALTON A SENIOR EQUITY ANALYST AT NATIONSBANK CORP ANOTHER KEMPER SHAREHOLDER SAID HE HASN'T YET DECIDED HOW TO VOTE BUT HE ADDED THAT NOTHING FROM OUR PERSPECTIVE REALLY CHANGED SINCE LAST MONTH WHEN HE SUGGESTED THAT GE AND KEMPER WOULD MAKE A NICE FIT KEMPER IS TELLING SHAREHOLDERS IT CAN SUBSTANTIALLY BOOST PROFITS BY CUTTING COSTS DOUBLING THE PROFIT ON ITS INVESTMENT PORTFOLIO AND BUILDING ITS MUTUALFUND BUSINESS MR MATHIS PREDICTED A 15 RETURN ON EQUITY BY 1996 UP FROM 6 LAST YEAR ANALYSTS SAID THAT IMPLIES A STOCK PRICE OF MORE THAN 70 A SHARE BUT EVEN SHAREHOLDERS WHO BELIEVE KEMPER'S PITCH SAID THEY CANNOT SUPPORT KEMPER GIVEN THEIR OBLIGATION TO ACCELERATE RETURNS ONE OF KEMPER'S LARGEST SHAREHOLDERS WHO DECLINED TO BE QUOTED BY NAME SAID THERE'S NO WAY WE CAN SUPPORT MANAGEMENT'S SLATE SHAREHOLDERS ADDED THAT THEY HAVE NOTHING TO LOSE BY VOTING FOR GE AFTER ALL THEY AREN'T VOTING TO ACCEPT AN OFFER OF 55 A SHARE THEY ARE SIMPLY VOTING ON WHETHER TO GIVE GE NOMINEES FOUR BOARD SEATS GE SAID IT WOULD USE THE SEATS TO PUT PRESSURE ON KEMPER TO PUT ITSELF ON THE AUCTION BLOCK THE BEST THING TO DO IS VOTE FOR GE AND HOPE THAT A HIGHER PRICE WOULD BE NEGOTIATED SAID ANOTHER SHAREHOLDER SUCH PREELECTION TALK COULD INFLUENCE EVENTS TRADERS SAID THAT IF KEMPER LOSES HOPE IT MIGHT GIVE UP THE FIGHT AND NEGOTIATE WITH GE IN ADVANCE OF THE SHAREHOLDERS GATHERING RATHER THAN FACE EMBARRASSMENT ON MEETING DAY TO BE SURE A GE VICTORY ISN'T A CERTAINTY THAT EXPLAINS WHY KEMPER YESTERDAY DIPPED BELOW 56 A SHARE IN INTRADAY TRADING FOR THE FIRST TIME SINCE GE ANNOUNCED ITS OFFER THE STOCK HAS TRADED AS HIGH AS 62 IN THE WEEKS FOLLOWING GE'S OFFER UP SHARPLY FROM THE 41 AT WHICH IT WAS CHANGING HANDS PRIOR TO THE GE OFFER IN THE ABSENCE OF A COMPETING BID GE HAS LITTLE REASON TO RAISE ITS OFFER IF GE IS THE ONLY GAME IN TOWN ITS INCENTIVE TO PAY MORE THAN 55 A SHARE ISN'T THAT GREAT ONE TRADER SAID COMPETING BIDS SEEM LESS LIKELY AS TIME GOES ON INDEED KEMPER ISN'T LOOKING FOR A WHITE KNIGHT OR FRIENDLY RESCUER COURT RULINGS SAY THAT COMPANIES THAT SEEK WHITE KNIGHTS ARE EFFECTIVELY PUTTING THEMSELVES UP FOR SALE THUS OBLIGATING THEMSELVES TO ACCEPT THE HIGHEST OFFER IF KEMPER STARTED TALKING TO POTENTIAL SUITORS IT COULD BE FORCED TO ACCEPT GE'S PROPOSAL IN THE ABSENCE OF ANOTHER BID AS FOR ALLIANZ ITS INTEREST APPEARS SLIGHT ALLIANZ IS STUDYING A BID BUT IS DETERRED BY THE PRICE ACCORDING TO A PERSON FAMILIAR WITH ALLIANZ'S VIEWS AN ALLIANZ SPOKESMAN DECLINED TO COMMENT SAYING WE DON'T DISCUSS RUMORS ALLIANZ BASED IN MUNICH IS ONE OF THE WORLD'S LARGEST INSURERS IN 1992 THE COMPANY REPORTED ASSETS OF 2074 BILLION MARKS 121 BILLION THREE YEARS AGO ALLIANZ BOUGHT FIREMAN'S FUND A US PROPERTY AND CASUALTY INSURER MORE RECENTLY IT HAS PUBLICLY DISCUSSED ITS INTEREST IN BUYING US LIFE INSURERS BUT THEY ARE VERY SELECTIVE ACCORDING TO LARRY MAYEWSKI OF AM BEST CO AN INSURANCE RATING CONCERN LIKE KEMPER GE ALSO HAS BEEN OUT TALKING TO FUND MANAGERS BUT ITS APPROACH HAS LEFT SOME INVESTORS COLD ONE INVESTOR WHO SAID HE IS LEANING TOWARD VOTING FOR GE'S SLATE OF DIRECTORS SAID GE AND ITS INVESTMENT BANKERS AT LAZARD FRERES & CO HAVE BEEN CRITICIZING KEMPER ITSELF RATHER THAN THE COMPANY'S MANAGEMENT WHICH STRUCK HIM AS UNUSUAL CONSIDERING THE FACT THAT GE WANTS TO BUY KEMPER THE INVESTOR SAID GE APPEARS TO BE TRYING TO DEPRESS THE PRICE OF KEMPER STOCK BY SAYING THAT KEMPER'S REALESTATE HOLDINGS ARE OVERVALUED BY 200 MILLION THEY'RE TRYING TO SCARE THE HELL OUT OF US THE INVESTOR SAID KEMPER OFFICIALS SAID THE COMPANY'S REALESTATE HOLDINGS ALREADY HAVE BEEN DRASTICALLY WRITTEN DOWN AND REFLECT THEIR PROPER VALUES THE NEWS HASN'T BEEN ENTIRELY BLEAK FOR KEMPER ON MONDAY BANCO SANTANDER A MAJOR SPANISH BANK SAID IT WOULD VOTE ITS 824000 SHARES OR 25 OF KEMPER STOCK IN FAVOR OF MANAGEMENT IT ARGUED THAT GE'S BID IS TOO LOW BUT TRADERS GAVE THE STATEMENT LITTLE SIGNIFICANCE POINTING OUT THAT THE BANK HAS A BUSINESS RELATIONSHIP WITH KEMPER TOGETHER KEMPER AND BANCO SANTANDER RUN A MUTUAL FUND INVESTING IN SPANISH EQUITIES 9404200012 940420 BUSINESS BRIEF LARGEST 2 THRIFTS POST 1STQUARTER EARNINGS EXCEEDING FORECASTS THE TWO LARGEST SAVINGSANDLOAN INSTITUTIONS IN THE US REPORTED FIRSTQUARTER OPERATING EARNINGS ABOVE ANALYSTS' EXPECTATIONS AS CREDIT QUALITY IN CALIFORNIA CONTINUES TO IMPROVE THOUGH LOAN DEMAND IS UNEVEN HF AHMANSON & CO IRWINDALE SAID NET INCOME ROSE 68 TO 554 MILLION OR 36 CENTS A SHARE COMPARED WITH 329 MILLION OR 23 CENTS A SHARE A YEAR EARLIER THE THRIFT SAID OPERATING RESULTS EXCLUDING A SPECIAL CHARGE OF 30 MILLION OR 14 CENTS A SHARE FOR PROPERTY LOSSES FROM THE LOS ANGELES EARTHQUAKE IN JANUARY EXCEEDED ANALYSTS' CONSENSUS FORECAST OF 46 CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH ITS TOTAL LOANLOSS CHARGE WAS 755 MILLION UP FROM 67 MILLION A YEAR AGO GREAT WESTERN FINANCIAL CORP CHATSWORTH EARNED 495 MILLION OR 32 CENTS A SHARE UP 95 FROM 452 MILLION OR 30 CENTS A SHARE A YEAR AGO ANALYSTS EXPECTED IT TO EARN 29 CENTS A SHARE ACCORDING TO ZACKS GREAT WESTERN'S LOANLOSS CHARGE FELL TO 518 MILLION FROM 625 MILLION THE COMPANY SAID IT EXPECTS NO MATERIAL LOSSES FROM THE EARTHQUAKE BUT NOTED THAT 2000 BORROWERS HAVE REQUESTED ASSISTANCE AHMANSON RECEIVED ABOUT 4800 REQUESTS BOTH FIRMS SAID THEIR PROFIT MARGINS ON LOANS DECLINED FROM A YEAR AGO REFLECTING A RECENT RISE IN INTEREST RATES AHMANSON SAID IT MADE 23 BILLION IN NEW LOANS DURING THE QUARTER UP FROM 21 BILLION A YEAR AGO GREAT WESTERN'S NEW LOANS DECLINED TO 22 BILLION FROM 23 BILLION IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE AHMANSON'S STOCK WAS UNCHANGED AT 18 A SHARE AND GREAT WESTERN'S STOCK WAS 16625 A SHARE DOWN 125 CENTS 9404200011 940420 COUNTY OFFICIAL LISTS SECURITIES DERIVATIVES ATTRACTED CRITICISM SANTA ANA CALIF ORANGE COUNTY TREASURER ROBERT CITRON WHO HAS COME UNDER CRITICISM FOR USING DERIVATIVE INVESTMENTS AND OTHER AGGRESSIVE FINANCIAL STRATEGIES TO BOOST RETURNS RELEASED A LIST OF SECURITIES IN HIS COUNTY INVESTMENT POOL BUT IT PROVIDED INSUFFICIENT INFORMATION FOR DETAILED ANALYSIS THE LISTING GAVE CURSORY DESCRIPTIONS PLUS PURCHASE AND MATURITY DATES PAR VALUE AND COST IT WASN'T POSSIBLE TO DETERMINE EXACTLY WHAT THE INVESTMENTS ARE WHAT THEIR CURRENT VALUE IS OR HOW RISKY THEY ARE THE LISTING IS JUNK SAID JOHN MOORLACH A COSTA MESA CERTIFIED PUBLIC ACCOUNTANT WHO IS CHALLENGING MR CITRON FOR THE TREASURER POST IN A JUNE 6 ELECTION MR CITRON DIDN'T RETURN CALLS YESTERDAY HE MANAGES FUNDS FOR ORANGE COUNTY AND 186 OTHER CALIFORNIA MUNICIPALITIES SCHOOL DISTRICTS AND GOVERNMENTAL UNITS HE HAS SAID THE PORTFOLIO EARNED 85 IN 1993 BUT ITS VALUE HAS BEEN HIT BY RISING INTEREST RATES THIS YEAR MR CITRON HAS ATTRACTED ATTENTION PARTLY BECAUSE OF HIS USE OF REVERSEREPURCHASE AGREEMENTS WHICH HE SAYS ENABLED HIM TO LEVERAGE 75 BILLION OF FUNDS INTO A TOTAL PORTFOLIO OF 195 BILLION IN SUCH AN AGREEMENT A BORROWER DELIVERS SECURITIES TO FINANCIAL INSTITUTIONS IN RETURN FOR CASH WITH THE UNDERSTANDING HE LATER WILL BUY THEM BACK AT A HIGHER PRICE MEANWHILE THE BORROWER INVESTS THE CASH HOPING TO GET A HIGHER RATE THAN HE HAS TO PAY UNDER THE TERMS OF THE AGREEMENT IN ADDITION MR CITRON HAS SAID ABOUT 20 OF THE PORTFOLIO IS INVESTED IN DERIVATIVES FINANCIAL AGREEMENTS WHOSE RETURNS ARE LINKED TO OR DERIVED FROM THE PERFORMANCE OF SOME UNDERLYING ASSET SUCH AS BONDS CURRENCIES OR COMMODITIES 9404200010 940420 TEMPORARY MEASURE FOR AIRPORT FUNDING IS APPROVED BY SENATE WASHINGTON THE SENATE APPROVED A TEMPORARY AIRPORTFUNDING BILL DEFERRING RESOLUTION OF AN ATTEMPT BY EXPRESSDELIVERY COMPANIES TO ESCAPE STATE TRUCKING REGULATIONS AND AN EFFORT BY AIRLINES TO ESCAPE HIGHER LANDING FEES THE BILL PROVIDES 800 MILLION IN AIRPORT GRANTS OR HALF OF THIS YEAR'S EXPECTED AUTHORIZATION SEVERAL INTEREST GROUPS HAD TACKED CONTROVERSIAL PROVISIONS TO THE BILL IN RECENT MONTHS KNOWING THE SENATE HAD TO PASS SOME KIND OF FUNDING MEASURE SOON IN PARTICULAR FEDERAL EXPRESS CORP AND UNITED PARCEL SERVICE OF AMERICA INC HAD WON LANGUAGE TO BAR STATES FROM SETTING RATES AND SERVICES FOR DELIVERY COMPANIES THAT USE AIRPLANES TO CARRY PACKAGES SOME REGIONAL TRUCKING COMPANIES FEARED THE MEASURE WOULD ALLOW MUCH LARGER COMPETITORS SUCH AS UPS TO GRAB MORE FREIGHT TRAFFIC AND DESTROY GOOD JOBS AND WORKING CONDITIONS AS TEAMSTERS PRESIDENT RON CAREY PUT IT THE TEAMSTERS' STRIKE AGAINST 20 TRUCKING COMPANIES MADE THE MEASURE MORE SENSITIVE AND THE SENATORS WHO SPONSORED THE PROVISION AGREED TO WAIT UNTIL LATER THIS YEAR TO RESOLVE THE ISSUE MEANWHILE AIRLINES HAD SOUGHT LANGUAGE TO CURTAIL THE ABILITY OF AIRPORTS TO INCREASE THEIR LANDING FEES WEEKS OF NEGOTIATION PRODUCED ONLY A TEMPORARY COMPROMISE A 60DAY PROVISION THAT GIVES THE TRANSPORTATION SECRETARY THE ABILITY TO BLOCK UNFAIR INCREASES IN THE CHARGES WHICH AIRLINES PAY RECENT LANDINGFEE INCREASES IN LOS ANGELES AND HONOLULU BROUGHT THE ISSUE TO A HEAD IT COULD TAKE SEVERAL WEEKS FOR THE HOUSE AND SENATE TO IRON OUT DIFFERENCES AND PRODUCE A TEMPORARY BILL LATER THEY WILL HAVE TO RETURN TO THE OUTSTANDING ISSUES AND PRODUCE A FINAL BILL 9404200009 940420 TECHNOLOGY & HEALTH NEW STUDY SUPPORTS USE OF LUMPECTOMY ALONG WITH RADIATION FOR BREAST CANCER BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL A NEW STUDY OF NEARLY 6000 PATIENTS CONFIRMED THAT WOMEN WHO UNDERGO A BREASTSAVING TREATMENT FOR BREAST CANCER HAVE SURVIVAL RATES AT LEAST AS GOOD AS THOSE WHO HAVE AN ENTIRE BREAST REMOVED RESEARCHERS SAID THAT FOR WOMEN WHO HAVE HAD THE PROCEDURE CALLED A LUMPECTOMY THE REPORT PROVIDES REASSURANCE IN THE WAKE OF DISCLOSURES OF FRAUDULENT DATA IN A PREVIOUS BREAST CANCER STUDY SUPPORTING ITS USE THE FAVORABLE RESULTS WERE AMONG WOMEN WHOSE TREATMENT ALSO INCLUDED RADIATION THE EARLIER REPORT SERVED AS THE BASIS IN 1990 FOR A RECOMMENDATION BY THE NATIONAL INSTITUTES OF HEALTH PUBLICATION ENCOURAGING GREATER USE OF BREASTCONSERVING OPERATIONS BUT REVELATIONS THAT AT LEAST ONE SCIENTIST IN THE LARGE MULTICENTER STUDY FALSIFIED DATA HAS PROVOKED WIDESPREAD CONCERN AMONG BREASTCANCER PATIENTS THE NEW STUDY OFFERS EVIDENCE THAT THOSE WHO ARE TREATED WITH BREASTCONSERVING SURGERY PLUS RADIATION SHOULDN'T WORRY SAID ANNA LEEFELDSTEIN A BIOSTATISTICIAN AT UNIVERSITY OF CALIFORNIAIRVINE AND LEAD AUTHOR OF THE REPORT INDEED SHE AND HER COAUTHORS CONCLUDED THERE IS AN URGENT NEED TO ENCOURAGE MORE FREQUENT USE BY PHYSICIANS OF SUCH PROCEDURES IN QUALIFIED WOMEN THE STUDY WHICH APPEARS IN TODAY'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION IS BASED ON 5892 NONHISPANIC WHITE WOMEN IN ORANGE COUNTY CALIF DIAGNOSED WITH LOCALIZED OR REGIONAL BREAST CANCER BETWEEN 1984 AND 1990 LOCALIZED CANCER HADN'T SPREAD BEYOND THE BREAST AT DIAGNOSIS REGIONAL TUMORS HAD EXTENDED TO TISSUE OR LYMPH NODES SURROUNDING THE BREAST BUT HADN'T SPREAD TO OTHER PARTS OF THE BODY THE PATIENT DATA CAME FROM A COUNTYBASED TUMOR REGISTRY THE STUDY FOUND THAT AMONG WOMEN WITH LOCALIZED CANCER THOSE TREATED WITH LUMPECTOMY OR SIMILAR PROCEDURE WITHOUT RADIATION WERE MORE THAN TWICE AS LIKELY TO DIE FROM ANY CAUSE AS THOSE WHO UNDERWENT LUMPECTOMY WITH RADIATION WOMEN WHO HAD A MASTECTOMY OR COMPLETE REMOVAL OF THE BREAST RAN A SLIGHTLY HIGHER RISK OF DEATH THAN WOMEN WITH A LUMPECTOMY AND RADIATION BUT FOR SEVERAL REASONS INCLUDING FACTORS THE STUDY WASN'T ABLE TO MEASURE DR LEEFELDSTEIN SAID IT WASN'T CLEAR THAT LUMPECTOMY WITH RADIATION WAS BETTER THAN MASTECTOMY THE RESULTS WERE SIMILAR FOR WOMEN WITH REGIONAL BREAST CANCER AND WERE ADJUSTED FOR AGE TUMOR SIZE AND OTHER VARIABLES THE RESEARCHERS ALSO FOUND THAT WOMEN WHO WERE DIAGNOSED AND TREATED AT A LARGE COMMUNITY HOSPITAL HAD SIGNIFICANTLY BETTER SURVIVAL RATES THAN AT SMALL COMMUNITY HOSPITALS AND HOSPITALS THAT HEALTH MAINTENANCE ORGANIZATIONS USE EXCLUSIVELY FOR THEIR OWN MEMBERS RESULTS AT TEACHING HOSPITALS APPEARED TO BE ABOUT THE SAME AS THOSE AT LARGE COMMUNITY HOSPITALS DR LEEFELDSTEIN SAID BUT THE FINDINGS WERE CONSIDERED STATISTICALLY SIGNIFICANT DR LEEFELDSTEIN SAID THE BETTER RESULTS AT LARGER HOSPITALS AND TEACHING HOSPITALS MAY REFLECT MORE SPECIALIZED CARE FOR BREAST DISEASES AT SUCH INSTITUTIONS OVERALL SHE SAID THE RESULTS SUGGEST THAT DOCTORS PRACTICING IN THE COMMUNITY AND NOT ONLY UNDER THE STRICT SPECIFICATIONS OF A CLINICAL STUDY CAN ACHIEVE FAVORABLE RESULTS WITH BREASTCONSERVING PROCEDURES AND RADIATION BRUCE CHABNER DIRECTOR OF CANCER TREATMENT AT THE NATIONAL CANCER INSTITUTE SAID OTHER EFFORTS ARE UNDER WAY TO CONFIRM THE RELATIVE EFFECTIVENESS OF SUCH PROCEDURES AND THAT INITIAL RESULTS SUPPORT THEIR USE IN ADDITION THE NCI HAS REANALYZED RESULTS FROM THE TAINTED TRIAL WITHOUT THE SUSPECT DATA AND FOUND THE CONCLUSIONS UNAFFECTED BUT THE ANALYSIS HASN'T BEEN PUBLISHED IN A MEDICAL JOURNAL 9404200008 940420 ABREAST OF THE MARKET INDUSTRIALS ZIGZAG TO A SLIM LOSS AFTER TRACKING BONDMARKET RISE BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCKS ZIGZAGGED THROUGH THE DAY YESTERDAY LARGELY TRACKING THE BOND MARKET BUT IN THE END MANAGED JUST A MIXED PERFORMANCE FEARS THAT HIGHER RATES WILL STIFLE THE ECONOMY LEFT THE DOW JONES INDUSTRIAL AVERAGE WITH A SLIM LOSS OF 060 OR 002 AT 361982 EVEN AS LONGTERM TREASURY BONDS JUMPED MORE THAN 1/2 POINT BOTH STOCKS AND BONDS HAD TUMBLED MONDAY AFTER THE FEDERAL RESERVE NUDGED UP SHORTTERM INTEREST RATES FOR A THIRD TIME IN LESS THAN THREE MONTHS THE SNAPBACK IN BONDS PUSHED THE YIELD ON THE 30YEAR TREASURY DOWN TO 737 FROM THE ROUGHLY 15MONTH HIGH SET MONDAY THE EFFECT OF THE SLOWDOWN WILL BE MOST ACUTE IN CYCLICAL STOCKS AND FOR A SECOND STRAIGHT DAY THEY WERE AMONG THE WEAKEST ALUMINUM CO OF AMERICA DROPPED 1 3/8 TO 65 INTERNATIONAL PAPER SKIDDED 1 7/8 TO 62 7/8 AND GENERAL MOTORS LOST 1 5/8 TO 55 1/4 BLUECHIP GROWTH STOCKS WHICH CAN REPORT EARNINGS GROWTH DESPITE THE LEVEL OF ECONOMIC GROWTH WERE STRONG SAID MICHAEL METZ MARKET STRATEGIST AT OPPENHEIMER & CO PHILIP MORRIS JUMPED 1 3/4 TO 51 7/8 AFTER POSTING STRONG EARNINGS PROCTER & GAMBLE ROSE 1 3/8 TO 54 5/8 AND PFIZER ADDED 2 TO 55 3/4 THE STANDARD & POOR'S 500 STOCK INDEX EDGED UP 008 OR 002 TO 44254 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 033 OR 013 TO 24537 THE NASDAQ STOCK MARKET WAS FAR WEAKER THE NASDAQ COMPOSITE INDEX SKIDDED 760 OR 105 TO 71285 ITS LOWEST CLOSING LEVEL SINCE AUG 3 1993 BUFFETED BY WEAKNESS IN TECHNOLOGY AND HEALTHMAINTENANCEORGANIZATIONRELATED ISSUES THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX LOST 290 OR 067 TO 43110 ON THE BIG BOARD DECLINERS LED ADVANCERS 1491 TO 749 WHERE VOLUME WAS 323260000 SHARES COMPARED WITH 271450000 SHARES ON MONDAY THE WORRIES ABOUT FUTURE PROFITS MEANWHILE OVERSHADOWED SEVERAL SOLID REPORTS ON EARNINGS FOR THE JUSTCOMPLETED FIRST QUARTER CHRYSLER JOINED OTHER CYCLICALS IN NEGATIVE TERRITORY EVEN THOUGH IT RELEASED STRONGERTHANEXPECTED FIRSTQUARTER EARNINGS OF 255 A SHARE UP FROM 157 BEFORE A CHARGE A YEAR EARLIER ITS STOCK TUMBLED 2 3/8 TO 48 1/2 ON MARKETLEADING VOLUME OF 64 MILLION SHARES MANY BANKING STOCKS EASED DESPITE A SERIES OF SOLID PROFIT REPORTS CITICORP LOST 1/4 TO 38 3/4 WELLS FARGO DROPPED 1 TO 145 1/4 CHEMICAL BANKING SLIPPED 1/2 TO 37 AND BANC ONE DECLINED 1/2 TO 33 7/8 EACH RELEASED IMPROVED EARNINGS PHILIP MORRIS SHARES ROSE AFTER THE NEW YORK FOOD AND TOBACCO COMPANY POSTED EARNINGS OF 134 A SHARE FOR THE FIRST QUARTER ALTHOUGH THAT WAS DOWN FROM 138 BEFORE A CHARGE LAST YEAR IT TOPPED THE 125 MEAN ESTIMATE OF ANALYSTS SURVEYED BY THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM MICROSOFT SURGED 5 1/8 TO 88 1/8 ON NASDAQ LATE MONDAY THE REDMOND WASH SOFTWARE DEVELOPER SAID ITS EARNINGS JUMPED TO 111 A SHARE EXCLUDING A CHARGE IN THE THIRD QUARTER ENDED LAST MONTH UP FROM 80 CENTS LAST YEAR OPPENHEIMER & CO RAISED ITS RATING ON THE STOCK TODAY TO BUY FROM MARKET PERFORMER BUT MANY COMPUTERRELATED STOCKS WERE LOWER HEWLETTPACKARD LOST 1 3/8 TO 76 3/8 ON NASDAQ APPLIED MATERIALS SKIDDED 2 1/4 TO 37 5/8 ORACLE LOST 1 3/4 TO 27 7/8 AND INTEL WHICH ALSO DISCLOSED IMPROVED EARNINGS LATE MONDAY FELL 1 TO 57 1/2 US HEALTHCARE FELL 3 TO 43 1/4 AND OXFORD HEALTH PLANS DROPPED 4 1/2 TO 54 BOTH ON NASDAQ WHILE UNITED HEALTHCARE SHED 2 7/8 TO 40 ON THE BIG BOARD THE HEALTHMAINTENANCE ORGANIZATION ISSUES WERE SAID TO HAVE BEEN HURT BY COMMENTS ABOUT HEALTHCARE REFORM INITIATIVES MADE BY SEN GEORGE MITCHELL D MAINE AMERICAN DEPOSITARY RECEIPTS OF MEXICAN COMPANIES FELL ALONG WITH THAT COUNTRY'S STOCK MARKET FOR A SECOND STRAIGHT DAY INVESTORS IN THAT COUNTRY WERE ALSO SAID TO BE CONCERNED ABOUT RISING INTEREST RATES TELEFONOS DE MEXICO A TELEPHONESERVICE COMPANY LOST 1 3/8 TO 53 1/2 GRUPO TRIBASA A CONSTRUCTION COMPANY SHED 1 3/4 TO 20 1/4 AND GRUPO TELEVISA A BROADCASTER DROPPED 2 5/8 TO 45 3/8 FIRST INTERSTATE BANCORP CLIMBED 3/8 TO 77 3/8 THE LOS ANGELES BANK REPORTED FIRSTQUARTER EARNINGS OF 221 A SHARE UP FROM 138 FROM OPERATIONS LAST YEAR RAISED ITS QUARTERLY DIVIDEND TO 75 CENTS FROM 50 CENTS AND SAID IT WILL BUY BACK UP TO 65 MILLION COMMON SHARES BEGINNING IN LATE JUNE SPRINT INCREASED 7/8 TO 35 7/8 THE KANSAS CITY COMMUNICATIONS COMPANY HAD A PROFIT OF 65 CENTS A SHARE IN THE FIRST QUARTER COMPARED WITH INCOME FROM CONTINUING OPERATIONS OF ABOUT 42 CENTS LAST YEAR EXCLUDING A CHARGE TIED TO ITS MERGER WITH CENTEL PYXIS LOST 4 11/16 TO 20 1/8 ON NASDAQ THE SAN DIEGO MAKER OF SYSTEMS TO MANAGE DISTRIBUTION OF HOSPITAL SUPPLIES HAD FIRSTQUARTER NET INCOME OF 22 CENTS A SHARE UP FROM 13 CENTS A YEAR AGO AND IN LINE WITH FORECASTS MONTGOMERY SECURITIES ANALYST LEONARD YAFFE WAS UPBEAT ABOUT THE STOCK BUT SAID PYXIS'S REVENUE OF 307 MILLION WAS WEAKER THAN HE HAD EXPECTED PRECIOUSMETALS PRODUCERS WERE LOWER AS THE PRICE OF GOLD DROPPED NEWMONT MINING FELL 3/4 TO 48 1/2 WHILE ON THE AMEX ECHO BAY MINES SLIPPED 1/4 TO 10 1/8 AND PEGASUS GOLD DECLINED 1 1/8 TO 15 5/8 GOLD FOR JUNE DELIVERY FELL 530 TO 37320 AN OUNCE IN NEW YORK THERE IS A GROWING CONSENSUS AMONG ANALYSTS THAT RATES HAVE ALREADY RISEN ENOUGH DURING THE PAST SEVERAL MONTHS TO CRIMP CORPORATE PROFITS LATER THIS YEAR IT'S ONE OF THOSE SCARY TIMES SAID JOHN CHURCH CHIEF INVESTMENT OFFICER OF GLENMEDE TRUST CO IN PHILADELPHIA IT SEEMS LIKE THERE IS GOOD VALUE BUT WHEN YOU GET BEAR MARKETS THEY CAN OVERSHOOT TO THE DOWNSIDE WHAT SEEMS TO BE FAIRLY VALUED LEVELS HE SAID 9404200007 940420 BUSINESS BRIEF SHARES OF CARBIDE ROHM & HAAS JUMP AS EARNINGS BEAT ANALYSTS' ESTIMATES TWO BIG CHEMICAL MAKERS REPORTED STRONGERTHANANTICIPATED FIRSTQUARTER RESULTS OFFERING FURTHER EVIDENCE THAT THE LONGDEPRESSED INDUSTRY'S EARLIER COSTCUTTING EFFORTS ARE BEARING FRUIT THE IMPROVED EARNINGS ALSO REFLECT A GRUDGING UPTURN IN THE CHEMICALS MARKET WHERE VOLUME IS RISING BUT EXCESS CAPACITY CONTINUES TO RESTRAIN PRICES FOR MANY BULK CHEMICALS AND PLASTICS THE ENCOURAGING RESULTS SENT UNION CARBIDE CORP SHARES UP 1125 TO 25 IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY WHERE ROHM & HAAS CO SHARES CLIMBED 1875 TO 5675 UNION CARBIDE DANBURY CONN REPORTED NET INCOME OF 63 MILLION OR 39 CENTS A PRIMARY SHARE IN THE LATEST PERIOD A PERFORMANCE THAT SIGNIFICANTLY TOPPED THE ABOUT 32 CENTS A SHARE THAT WALL STREET HAD BEEN EXPECTING A HOST OF SPECIAL ITEMS COMBINED TO TRIM FIVE CENTS A SHARE FROM THE LATEST QUARTER A YEAR EARLIER CARBIDE HAD EARNINGS OF 42 MILLION OR 28 CENTS A SHARE BEFORE A BIG ACCOUNTING CHANGE LED TO A NET LOSS OF 55 MILLION OR 41 CENTS A SHARE THE IMPROVED EARNINGS CAME DESPITE A DECLINE IN SALES TO 113 BILLION FROM 119 BILLION CARBIDE SAID IT CONTINUED TO BENEFIT FROM PROGRESS IN ITS COSTREDUCTION EFFORTS AND FROM IMPROVED RESULTS OF ITS JOINT VENTURES WHILE VOLUME IMPROVED THE COMPANY SAID THAT INCREASE WAS LARGELY OFFSET BY PRICE DECLINES FOR CERTAIN COMMODITY PRODUCTS ROHM & HAAS BASED IN PHILADELPHIA REPORTED NET OF 67 MILLION OR 96 CENTS A SHARE EXCEEDING THE ABOUT 85 CENTS ANALYSTS HAD BEEN EXPECTING A YEAR EARLIER IT REPORTED EARNINGS OF 58 MILLION OR 83 CENTS A SHARE BEFORE AN ACCOUNTING CHANGE CUT NET TO 39 MILLION OR 55 CENTS A SHARE SALES ROSE TO 856 MILLION FROM 826 MILLION FOR THE COMPANY WHICH HAS AN EXTENSIVE EXPOSURE IN EUROPE THE ECONOMIC RECOVERY IS NOW WELL UNDER WAY IN THE US AND WE'RE BEGINNING TO SEE SIGNS OF A REBOUND IN EUROPE THE COMPANY SAID WHILE IT EXPECTS TO FACE CONTINUED UNFAVORABLE CURRENCY EFFECTS IN EUROPE THROUGH 1994 THE COMPANY SAID IT EXPECTS TO SEE ADDITIONAL RELIEF IN EXTERNAL ECONOMIC CONDITIONS AS THE YEAR PROGRESSES WHILE PRICES WERE SLIGHTLY BELOW THOSE IN PLACE A YEAR AGO ROHM SAID WE DID BEGIN TO DETECT A MORE FAVORABLE ENVIRONMENT FOR PRICE INCREASES DURING THE QUARTER 9404200006 940420 HEARD ON THE STREET PAPER STOCKS MAY BE POISED FOR A RECOVERY PARTLY DUE TO PRICE INCREASES OF LINERBOARD BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL PAPER INVESTORS' HEADS ARE FULL OF CARDBOARD THAT IS TO SAY THEY BELIEVE THIS OUTOFFAVOR GROUP IS ABOUT TO MAKE A COMEBACK PARTLY BECAUSE OF PRICE INCREASES FOR THE RAW MATERIAL OF CORRUGATED BOXESLINERBOARD TO BE PRECISE THE BULLS' CASE IS SIMPLE PRICE BOOSTS MIGHT LEAD TO AN EARNINGS RECOVERY AMONG PAPER COMPANIES IN COMING MONTHS IT MIGHT SEEM AS IF THESE INVESTORS' HEADS ARE FULL OF PULP GIVEN THE GROUP'S FALSE START EARLIER THIS YEAR WHEN PEOPLE ALSO THOUGHT A TURNAROUND WAS UNDER WAY BUT THIS TIME THE BULLS HAVE MORE FODDER TWO PRICE INCREASES UNDER THEIR BELT AND A SCARCITY OF POTENTIALLY PROFITCRIMPING NEW PRODUCTION CAPACITY THE STOCKS ARE CHEAP WITH MANY NEAR LOWS THEY SET LAST OCTOBER WHEN PAPER PRICES AND INVESTORS' HOPES WERE SINKING AND THEY GOT EVEN CHEAPER YESTERDAY TEMPLEINLAND FELL 2 1/8 TO 43 3/4 INTERNATIONAL PAPER LOST 1 7/8 TO 62 7/8 STONE CONTAINER EDGED UP 1/4 TO 12 5/8 WILLAMETTE INDUSTRIES CLOSED ON NASDAQ AT 43 1/4 DOWN 2 1/4 CYCLICAL STOCKS EBB AND FLOW WITH THE ECONOMY LIKE MANY CYCLICALS PAPER STOCKS HAVE BEEN RECENT VICTIMS OF FEAR THAT THE RECENT JUMP IN INTEREST RATES COULD LEAD TO A SLOWDOWN IN THE ECONOMY EARNINGS OF PAPER COMPANIES THE SKEPTICS SAY COULD THEN BE FURTHER STUNTED LARRY MARX COMANAGER OF NEUBERGER & BERMAN'S GUARDIAN FUND SAYS SUCH THINKING ISN'T WORTH ITS WEIGHT IN PAPER I THINK THERE'S A LOT OF MINDLESS SELLING GOING ON HE SAYS MR MARX HAS BEEN ADDING TO HIS HOLDINGS OF WILLAMETTE INDUSTRIES WHICH ISN'T FAR FROM ITS OCTOBER LOW I DEFINITELY BELIEVE THE INDUSTRY IS TURNING HE SAYS IF MR MARX IS RIGHT PAPER COMPANIES COULD BE IN FOR A LONG UPWARD MARCH PAPER STOCKS TEND TO OUTPERFORM UNTIL EARNINGS APPROACH THEIR PEAK LEVELS WHICH ARE CURRENTLY FORECAST TO MATERIALIZE SOMETIME IN 1997 SAYS JOHN CHRYSIKOPOULOS ANALYST AT GOLDMAN SACHS HE BOOSTED HIS RECOMMENDATION ON THE GROUP TO OVERWEIGHT FROM MARKETWEIGHT MEANING TO GIVE THE GROUP A LARGER ROLE IN A PORTFOLIO IN PARTICULAR HE LIKES STONE CONTAINER TEMPLEINLAND AND UNION CAMP THIS WEEK HE GOT EVEN MORE BULLISH ON TEMPLEINLAND ADDING IT TO GOLDMAN'S RECOMMENDED LIST RESULTS OF PAPER COMPANIES HAVE BEEN DISMAL OF LATE AND MANY ANALYSTS DON'T EXPECT IMPROVEMENT UNTIL THE SECOND QUARTER AT THE EARLIEST CA DILLON ANALYST WITH SALOMON BROTHERS ESTIMATES GEORGIAPACIFIC WILL POST FIRSTQUARTER EARNINGS OF 30 CENTS A SHARE TOMORROW WITH SECONDQUARTER PROFIT ESTIMATED AT 50 CENTS A SHARE INTERNATIONAL PAPER EARNED 58 CENTS A SHARE IN THE FIRST QUARTER MR DILLON EXPECTS THE COMPANY WILL REPORT 70 CENTS A SHARE IN THE SECOND QUARTER AS FOR STONE CONTAINER MR DILLON ESTIMATES IT WILL NARROW ITS PERSHARE NET LOSS FROM 95 CENTS IN THE FIRST QUARTER TO 45 CENTS IN THE SECOND QUARTER AND 20 CENTS IN THE THIRD PERIOD STONE STILL HAS A MOUNTAIN OF DEBT BUT STONE HAS MORE RAW UPSIDE POTENTIAL SAYS MR DILLON ITS HEAVY LEVERAGE MEANS THAT PERCENTAGE GAINS IN EARNINGS WILL BE STEEPER THAN AT COMPANIES CARRYING LESS DEBT SOME INVESTORS ALSO SEE AS A PLUS THE LARGE AMOUNT OF BEARISH BETS KNOWN AS SHORTSALES IN STONE CONTAINER SHORTSELLERS BORROW STOCK AND EVENTUALLY HAVE TO BUY IT BACK ALSO A POTENTIAL BRIGHT SPOT AMID EXTENSIVE INSIDER SELLING IN FEBRUARY ONE MEMBER OF STONE CONTAINER'S BOARD BOUGHT 10000 SHARES AT AROUND 16 BRINGING HIS HOLDINGS TO AROUND 15000 SOME INVESTORS JUMPED THE GUN ON THE COMEBACK STORY FOR PAPER COMPANIES EARLY THIS YEAR FOLLOWING A PRICE INCREASE LAST OCTOBER FROM 290 A TON TO 315 THAT SENT PAPER STOCKS GALLOPING UNTIL THEY WERE TRIPPED UP BY THE RISE IN INTEREST RATES THE INTERESTRATE INCREASES AREN'T GOING TO MATTER THAT MUCH ARGUES SALOMON'S MR DILLON BESIDES HE ADDS RATES ARE STILL RELATIVELY LOW PAPER COMPANIES HAVE BEEN KNOWN TO OVEREXPAND IN THE PAST BUT OVERCAPACITY DOESN'T SEEM IMMINENT FOR ONE THING A STONE CONTAINER PLANT HAS JUST HAD AN EXPLOSION THAT WILL CLOSE THE PLANT FOR AT LEAST A FEW WEEKS THE MILL PRODUCED 300000 TONS OF CONTAINERBOARD EQUAL TO 1 OF US INDUSTRY CAPACITY ANNUALLY COMPANIES HEAVILY RELIANT ON WOOD PRODUCTS COULD CONCEIVABLY SEE DEMAND SLOW IF HOUSING STARTS SLACKEN HE CONCEDES BUT HE THINKS WOODPRODUCT PROFITABILITY WILL STAY HIGH THROUGH 1994 SOME INVESTORS ARE ATTRACTED TO COMPANIES WITH EXPOSURE TO THE WOOD BUSINESS LIKE WILLAMETTE WHICH IS IN BOTH WOOD AND LINERBOARD WOOD IS GOOD SAYS NEUBERGER'S MR MARX 9404200005 940420 INTERNATIONAL MANNESMANN SALES ARE UP HANOVER GERMANY DIVERSIFIED INDUSTRIAL GROUP MANNESMANN AG SAID GROUP SALES IN THE FIRST QUARTER WERE JUST BELOW 66 BILLION MARKS 386 BILLION UP 14 FROM A YEAR EARLIER IN THE TEXT OF A SPEECH TO BE DELIVERED AT THE HANOVER INDUSTRIAL FAIR MANNESMANN CHAIRMAN WERNER DIETER ALSO SAID THE GROUP'S ORDER INFLOW ROSE 21 IN THE FIRST QUARTER TO 84 BILLION MARKS MR DIETER REITERATED EARLIER STATEMENTS THAT MANNESMANN HAD A LOSS IN 1993 BUT DIDN'T OFFER ANY FIGURES HE NOTED HOWEVER THAT EARNINGS IMPROVED IN THE SECOND HALF OF 1993 AND THAT THE PARENT COMPANY MADE A PROFIT LAST YEAR 9404200004 940420 BUSINESS BRIEF LAC MINERALS LTD MINING CONCERN HALTS PLANS FOR COPPER PROJECT IN CHILE LAC MINERALS LTD SAID IT CANCELED PLANS TO PARTICIPATE IN A 1 BILLION COPPER PROJECT IN CHILE CITING LOWERTHANEXPECTED COPPER GRADES LAC OF TORONTO AND CYPRUS AMAX MINERALS CO DENVER HAD PLANNED TO PURCHASE A 51 STAKE IN THE EL ABRA PROJECT FROM CORP NACIONAL DEL COBRE DE CHILE KNOWN AS CODELCO THE BID INCLUDED AN OFFER OF 404 MILLION AT CLOSING AND A 151 MILLION EQUITY CONTRIBUTION TO THE PROJECT ON BEHALF OF CODELCO CYPRUS HAS SAID THE PROJECT WOULD PRODUCE ABOUT 225000 TONS OF COPPER A YEAR AND REQUIRE A TOTAL INVESTMENT OF ABOUT 1 BILLION CYPRUS SAID AS A RESULT OF TECHNICAL WORK IN THE LAST FEW WEEKS LAC SAID IT BELIEVES THAT THE ORE DEPOSIT IS DIFFERENT FROM THE DEPOSIT ON WHICH IT BASED ITS BID CODELCO AND CYPRUS AMAX WILL RESUME NEGOTIATIONS NEXT MONTH FOLLOWING FURTHER MINERAL TESTS 9404200003 940420 INTERNATIONAL BRIEF INCHCAPE PLC FIRM WINS EXCLUSIVE RIGHTS ON ROLLSROYCES IN CHINA ROLLSROYCE MOTOR CARS LTD A UNIT OF VICKERS PLC AWARDED INCHCAPE PLC'S INCHCAPE MOTORS INTERNATIONAL EXCLUSIVE RIGHTS TO IMPORT AND DISTRIBUTE ITS LUXURY CARS IN CHINA INCHCAPE PLANS TO ESTABLISH THREE IMPORT CENTERS IN BEIJING SHANGHAI AND GUANGZHOU AND TO APPOINT DEALERS ON HAINAN ISLAND AND IN GUANGZHOU ACCORDING TO IAN SKEGGS THE COMPANY'S DIRECTOR FOR THE ASIAPACIFIC REGION HE SAID INCHCAPE HAS SOLD 51 ROLLSROYCES TO THE MAINLAND THROUGH ITS FRANCHISE IN HONG KONG SINCE 1992 THE FRANCHISE SOLD 30 LUXURY CARS IN 1993 AND 11 IN THE FIRST QUARTER OF THIS YEAR MOSTLY TO CUSTOMERS IN SOUTHERN CHINA JUST ACROSS THE BORDER FROM HONG KONG THE MAINLAND DEAL INCLUDES THE RIGHT TO SELL BENTLEY CARS BUT ROLLSROYCES HAVE SO FAR PROVEN MORE POPULAR SAID MICHAEL DONOVAN MANAGING DIRECTOR COMMERCIAL FOR ROLLSROYCE HE DECLINED TO FORECAST THE POTENTIAL OF THE CHINA MARKET SAYING ONLY THAT HE EXPECTED SALES TO REACH ABOUT 100 A YEAR IN A FEW YEARS 9404200002 940420 FIRM LAUNCHES INDEX FUND FOR EMERGING MARKETS VALLEY FORGE PA VANGUARD GROUP SAID IT LAUNCHED ITS EMERGINGMARKETS INDEX FUND GIVING INDIVIDUALS A RELATIVELY LOWCOST WAY TO INVEST IN STOCK MARKETS OF DEVELOPING COUNTRIES THE NEW EMERGING MARKETS PORTFOLIO WILL INVEST IN ABOUT 300 STOCKS INCLUDED IN THE MORGAN STANLEY CAPITAL INTERNATIONAL SELECT EMERGING MARKETS FREE INDEX THIS BROAD INDEX INCLUDES STOCKS IN SOUTHEAST ASIA LATIN AMERICA AND EUROPE PLANS FOR THE FUND WERE REPORTED IN THE WALL STREET JOURNAL IN FEBRUARY INDEX MUTUAL FUNDS BUY THE STOCKS IN A PARTICULAR INDEX A STRATEGY THAT HOLDS DOWN ANNUAL EXPENSES THE MINIMUM INITIAL INVESTMENT FOR THE EMERGING MARKETS PORTFOLIO WILL BE 3000 THE FUND WILL CHARGE A 2 TRANSACTION FEE ON PURCHASES AND A 1 TRANSACTION FEE ON REDEMPTIONS THE FUND ALSO DEDUCTS A 10 ANNUAL ACCOUNTMAINTENANCE FEE FROM DIVIDEND INCOME VANGUARD GROUP OVERSEES ASSETS TOTALING MORE THAN 127 BILLION THE MUTUALFUND COMPANY MANAGES 82 INVESTMENT PORTFOLIOS 9404200001 940420 BUSINESS BRIEF FREEPORTMCMORAN INC SHAREHOLDERS TO GET STOCK IN NEW ENERGY SUBSIDIARY FREEPORTMCMORAN INC SAID IT PLANS TO DISTRIBUTE SHARES OF A NEW ENERGY SUBSIDIARY TO ITS SHAREHOLDERS THE NEW COMPANY MCMORAN OIL & GAS CO WILL CONDUCT SUBSTANTIALLY ALL THE OIL AND NATURALGAS EXPLORATION ACTIVITIES CURRENTLY DONE BY FREEPORTMCMORAN THE PARENT SAID FREEPORTMCMORAN WILL TRANSFER 35 MILLION ALL OF ITS OIL AND NATURALGAS EXPLORATION RIGHTS ITS OIL AND NATURALGAS PROPERTIES AND ITS OIL AND NATURALGAS DATABASE TO MCMORAN FREEPORTMCMORAN WILL KEEP ITS MAIN PASS SULFUR AND OIL OPERATION OFFSHORE LOUISIANA FREEPORTMCMORAN SAID THE NEW COMPANY LIKE THE PARENT IS TO OPERATE OIL AND NATURALGAS EXPLORATION PROGRAMS WHERE SIGNIFICANT FUNDING IS FROM OTHER INVESTORS THE COMPANY ALSO SAID IT EXPECTS THE INITIAL VALUE OF MCMORAN'S COMMON STOCK TO BE SMALL SEPARATELY AFFILIATE FREEPORTMCMORAN COPPER & GOLD INC SAID A UNIT PLANS TO FURTHER EXPAND A COPPER SMELTER AT HUELVA SPAIN TO 270000 METRIC TONS OF ANNUAL PRODUCTION BY EARLY 1996 THE SMELTER CURRENTLY IS BEING EXPANDED TO 180000 METRIC TONS FROM 150000 9404200074 940330 TEXAS JOURNAL HMOS SEEK CURE FOR TEXAS' RESISTANCE THE TREATMENT CUT COSTS DEBUNK MYTHS AND WOO PHYSICIANS FOR KAISER'S HMO IN DALLAS LAWSUITS LED TO LOSS IN 1993 BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL KAISER FOUNDATION HEALTH PLAN OF TEXAS THE DALLAS AREA'S BIGGEST HEALTHMAINTENANCE ORGANIZATION HAD A 163 MILLION PRETAX LOSS LAST YEAR AFTER BEING HIT WITH AN UNUSUALLY HIGH NUMBER OF MALPRACTICE SUITS KAISER A UNIT OF KAISER FOUNDATION HEALTH PLAN INC OF OAKLAND CALIF SAYS IT TOOK A 28 MILLION CHARGE TO RESERVE MONEY FOR RESOLVING 29 CLAIMS FILED AGAINST IT IN 1993 THE LOSS WAS THE LARGEST OF ANY TEXAS HMO IN AT LEAST THREE YEARS IN 1992 KAISER HAD A PRETAX PROFIT OF 827000 TEXAS IS A VERY LITIGIOUS STATE SAYS HMO SPOKESMAN KEN SMITH IT MAKES IT HARDER TO MAKE A PROFIT STATE DISTRICT COURT RECORDS SHOW MANY OF THE SUITS CHARGE KAISER AND ITS DOCTORS WITH NEGLIGENCE OFTEN FOR FAILING TO AUTHORIZE NEEDED TESTS OR VISITS TO SPECIALISTS ONE SUIT FILED IN STATE DISTRICT COURT IN TARRANT COUNTY ALLEGED KAISER PHYSICIANS DIDN'T GIVE A COUNTY WOMAN ANY OF SEVERAL DIAGNOSTIC TESTS THAT WOULD HAVE DETECTED A BRAIN TUMOR AT LEAST TWO YEARS EARLIER THE FAMILY OF DIANE CAYWOOD WHO WAS 49 YEARS OLD WHEN SHE DIED FROM THE TUMOR LAST YEAR CLAIMED THAT FROM 1988 TO 1990 KAISER PHYSICIANS PASSED OFF HER SEIZURES AND OTHER SYMPTOMS AS ANXIETY ATTACKS THE TUMOR WAS FOUND ONLY WHEN SHE HAD AN EMERGENCYROOM CT SCAN IN 1992 IN MANAGED CARE YOU HAVE BOOKKEEPERS IN CHARGE OF HEALTH CARE SAYS ROBERT M KISSELBURGH THE CAYWOODS' ATTORNEY DOLLARS ARE PUT IN FRONT OF PATIENT LIVES THE SUIT WAS SETTLED LAST WEEK FOR AN UNDISCLOSED AMOUNT HE SAYS ANOTHER SUIT WHICH COURT RECORDS SHOW WAS SETTLED ON MARCH 17 FOR 86 MILLION CLAIMS KAISER PHYSICIANS WERE NEGLIGENT IN THE 1992 DEATH OF 27YEAROLD LISA ANN WILLIAMS FROM PREECLAMPSIA A SERIOUS CONDITION THAT SOMETIMES DEVELOPS LATE IN PREGNANCY THE SUIT FILED IN STATE DISTRICT COURT IN DALLAS CLAIMED KAISER SHOULD HAVE DETECTED THE CONDITION EARLIER AND SENT HER TO A SPECIALIST THE SETTLEMENT MONEY AFTER ATTORNEY FEES WILL GO TO FAMILY MEMBERS INCLUDING THE SON SHE BORE SEVERAL DAYS BEFORE HER DEATH KAISER AS A MATTER OF POLICY DECLINES TO COMMENT ON LAWSUITS BUT THE HMO WHOSE MEMBERSHIP GREW 3 IN DALLAS LAST YEAR REMAINS OPTIMISTIC ABOUT THE MARKET MR SMITH SAYS OF THE LAWSUITS WE JUST VIEW THIS AS THE COST OF DOING BUSINESS SEE RELATED LETTER TEXAS JOURNAL LETTERS TO THE EDITOR HORROR STORIES WSJ APRIL 13 1994 SEE RELATED LETTER TEXAS JOURNAL LETTERS TO THE EDITOR HMOS LESS CARE FOR LESS MONEY WSJ APRIL 20 1994 9404130127 9403300118 YY94 MM04 9404200072 940314 PUBLISHING NEW MAGAZINES FOR NEW CLIQUES OF TEENS BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN TEENAGERS SPEND NEARLY 90 BILLION A YEAR AND MAGAZINE PUBLISHERS HOPE THEY'LL SPEND EVEN MORE ARRIVING ON NEWSSTANDS THIS WEEK IS MOUTH2MOUTH A HIP NEW MAGAZINE FUNDED BY TIME WARNER INC AND AIMED AT THE MTV GENERATION IT FOLLOWS BY JUST A FEW MONTHS THE LAUNCH OF TWO COMPETITORS TELL AND QUAKE THE NEW MAGAZINES ENTER A FIELD THAT ALREADY INCLUDES SEVENTEEN THE LEADER YM SASSY AND TEEN PLUS A HOST OF SPECIALIZED MAGAZINES LIKE YSB YOUNG SISTERS AND BROTHERS AIMED AT BLACK TEENS AND YOUNG SCHOLAR FOR NERDS AS BABY BOOMERS' CHILDREN REACH ADOLESCENCE THE TEEN MARKET IS EXPANDING IN 1992 FOR THE FIRST TIME IN 17 YEARS THE POPULATION OF TEENAGERS INCREASED SAYS PETER ZOLLO PRESIDENT OF TEENAGE RESEARCH UNLIMITED OF NORTHBROOK ILL MR ZOLLO SAYS THERE ARE ABOUT 285 MILLION AMERICANS BETWEEN THE AGES OF 12 AND 19 FOR ADVERTISERS THIS AGE GROUP IS PARTICULARLY ATTRACTIVE BECAUSE AS TEENAGERS EXPLORE THEIR OWN IDENTITIES THEY EXPERIMENT WITH NEW BRANDS OF CONSUMER PRODUCTS TEENAGERS DON'T JUST BUY MORE MAGAZINES EVERY YEAR THEY BUY MORE OF EVERYTHING AND ADVERTISERS HAVE WOKEN UP TO THAT SAYS VALERIE MULLER MEDIA DIRECTOR FOR DEWITT MEDIA INC ATTRACTIVE AS THEY ARE TO ADVERTISERS TEENAGERS ARE SLIPPERY CUSTOMERS OVER THE YEARS TEENS HAVE BECOME A WHOLE LOT MORE SOPHISTICATED SOME WOULD SAY CYNICAL AND ARE PUT OFF BY THE OLD POLLYANNA PLATITUDES BOTH SASSY AND YM HAVE HELPED TURN THE WHOLE GENRE CHEEKIER SASSY'S IDEA OF A SERVICE PIECE IS HOW TO DRINK IN COLLEGE WITHOUT PUKING EVERY NIGHT BUT THERE IS A FINE LINE TO WALK MADEMOISELLE RECENTLY DUMPED AN EDITOR THE MAGAZINE THOUGHT HAD ALIENTED READERS BY GOING TOO KINKY ADVERTISERS GET SKITTISH WHEN MAGAZINES ARE TOO EDGY AND DARK BUT THEY ALSO WANT THEIR ADS IN A CONTEXT CONSIDERED TRENDY BY TEENS IF TRENDINESS IS THE YARDSTICK THEN MOUTH2MOUTH STANDS TALLEST AMONG THE LATEST BATCH OF COMPETITORS DESCRIBED BY ITS FOUNDERS AS A CROSS BETWEEN MAD AND VANITY FAIR THE MAGAZINE IS LOADED WITH POPCULTURE CELEBRITIES AND MARKED BY AN OFFBEAT SENSE OF HUMOR IN THE FIRST ISSUE FOR EXAMPLE AMY FISHER CONVICTED OF SHOOTING HER LOVER'S WIFE GIVES ADVICE ON SEX EACH ISSUE WILL END WITH A PHOTO OF AN ACTUAL TEENAGER'S ROOM A SORT OF DEWAR'S PROFILE FOR THE BEAVIS AND BUTTHEAD SET WE WANT THE MAGAZINE TO BE AS OUTSPOKEN GUTSY AND LOUD AS TEENAGERS ARE SAYS EDITOR IN CHIEF ANGELA JANKLOW HARRINGTON 29 YEARS OLD WHO HAS SPENT MUCH OF HER CAREER WRITING FOR VANITY FAIR I WANT IT TO BE CELEBRITYDRIVEN BUT NOT AN INSULT TO THE READER'S INTELLIGENCE IT'S ABOUT LIFESTYLE NOT 62 DIFFERENT WAYS TO TWIRL YOUR HAIR WHAT SETS M2M APART IS ITS GOAL OF APPEALING TO BOTH MALES AND FEMALES A STRATEGY THAT YSB IS ALSO TRYING BUT THAT HAS RARELY WORKED WITH MAGAZINES FOR THIS AGE GROUP NOBODY HAS EVER SUCCESSFULLY CREATED A DUAL AUDIENCE FOR TEEN MAGAZINES BECAUSE THERE IS A HUGE MATURITY GAP BETWEEN 16YEAROLD BOYS AND GIRLS OF THE SAME AGE SAYS NEW YORK CITYBASED MAGAZINE CONSULTANT MARTIN WALKER MOST OF THE MAGAZINES ARE AIMED AT GIRLS PARTLY BECAUSE THEY ARE SEEN AS THE BIGGER SPENDERS AND THESE MAGAZINES MAKE MOST OF THEIR MONEY ON FASHION AND COSMETICS ADS BUT MS HARRINGTON SAYS SHE BELIEVES THIS GENERATION IS DIFFERENT EVERYBODY IN THIS GENERATION WATCHES MTV AND WEARS THE SAME GRUNGE CLOTHES SHE SAYS I THINK THEY'RE MORE MATURE AND MEDIAINUNDATED THE MEDIA HAS DEMYSTIFIED SEXUAL DIFFERENCES FOR THEM IN ITS FIRST ISSUE LAST SUMMER QUAKE TRIED TO POSITION ITSELF FOR A DUAL AUDIENCE BUT HAS ALREADY REDIRECTED ITSELF MORE TO GIRLS A FASHION SPREAD IN THE PREMIERE ISSUE ON WHAT TO WEAR ON A FIRST DATE FEATURED BOTH SEXES BUT THE SECOND ISSUE OUT LAST MONTH CARRIES A PIECE ON PROM STYLE SHOWING 12 OUTFITS FOR GIRLS AND ONLY TWO FOR BOYS TELL HAS BEEN SQUARELY AIMED AT GIRLS FROM THE START WITH ARTICLES LIKE GIRLS TALK SEX AND WHY CAN'T I BE A MODEL IT'S STILL TOO EARLY TO PREDICT WHETHER BOYS WILL BUY A MAGAZINE HOWEVER HIP THAT CARRIES LIPSTICK AND NAIL POLISH ADS BUT MANY OF THE EARLY REVIEWS FOR MOUTH2MOUTH HAVE BEEN RAVES MOUTH2MOUTH STARTS OUT WITH EXTRA PULL NOT JUST BECAUSE ITS EDITOR MS HARRINGTON HAS HOLLYWOOD CONNECTIONS AND A FAMOUS FATHER LITERARY AGENT MORTON JANKLOW BUT BECAUSE IT IS PUBLISHED BY DEEPPOCKETED TIME WARNER DEVELOPED BY THE COMPANY'S VENTURES DIVISION WHICH ALSO PUBLISHES THE VERY SLICK VIBE AND MARTHA STEWART LIVING M2M HAS ALREADY GOTTEN THE GREEN LIGHT FOR A SECOND ISSUE DUE IN AUGUST BUT MOST OF THE COMPETITORS ALSO HAVE DEEP POCKETS AND A STRONG COMMITMENT FROM THEIR PUBLISHERS QUAKE JOINTLY APUBLISHED BY WELSH PUBLISHING GROUP AND COWLES MAGAZINES HAS DECIDED TO PUBLISH SIX TIMES A YEAR TELL PUBLISHED BY HACHETTE FILIPACCHI IN PARTNERSHIP WITH NBC HAS AGREED TO GO QUARTERLY THIS YEAR AND THEN EVALUATE CIRCULATION BUT NONE OF THESE NEW TITLES WILL HAVE AN EASY TIME GIVEN THE COMPETITIVENESS OF THE ESTABLISHED TEEN MAGAZINES IN FACT THE RIVALRY IS ABOUT TO INTENSIFY BETWEEN THE TWO GIANTS OF THE TEEN GENRE SEVENTEEN AND YM SEVENTEEN OWNED BY KIII COMMUNICATIONS CORP HAS A CIRCULATION OF 185 MILLION BUT THE IRREVERANT YM IS YAPPING AT ITS HEELS AS NEVER BEFORE YM NOW HAS CIRCULATION OF 18 MILLION UP 90 OVER THE PAST THREE YEARS SEVENTEEN HAS A BRAND NEW EDITOR CAROLINE MILLER AND YM WILL APPOINT A NEW ONE IN THE NEXT FEW WEEKS STILL THE NEWCOMERS BELIEVE THERE'S ROOM IN THE EXPANDING TEEN MARKET FOR NEW VOICES THERE HAS BEEN AN IDEA THAT THE ADULT MARKET IS SEGMENTED BUT TEENS ARE ONE BIG MASS MARKET SAYS WEBB HOWELL PUBLISHER OF YOUNG SCHOLAR WE BELIEVE THAT THERE ARE LOTS OF NICHES IN THIS MARKET AND THAT SOME KIDS CARE ABOUT MORE THAN LUKE PERRY AND 90210 SEE RELATED LETTER LETTERS TO THE EDITOR BRANDING ACHIEVERS AS NERDS HOW PASSE WSJ APRIL 20 1994 9403140013 YY94 MM04 9404200027 940321 REVIEW & OUTLOOK EDITORIAL O TEMPORA O MORES I WAS RAISED TO BELIEVE THE AMERICAN DREAM WAS BUILT ON REWARDING HARD WORK BUT WE HAVE SEEN THE FOLKS IN WASHINGTON TURN THE AMERICAN ETHIC ON ITS HEAD FOR TOO LONG THOSE WHO PLAY BY THE RULES AND KEEP THE FAITH HAVE GOTTEN THE SHAFT AND THOSE WHO CUT CORNERS AND CUT DEALS HAVE BEEN REWARDED BILL CLINTON IN HIS ACCEPTANCE SPEECH AT THE DEMOCRATIC NATIONAL CONVENTION AUGUST 16 1992 OH THE TIMES THE MORES THE LATEST ROUND OF WHITEWATER NEWS REPORTS SHOWS TWO THINGS THAT ANYONE TRYING TO COMPREHEND THIS STORY HAS TO UNDERSTAND FIRST IT WASN'T ONLY WHITEWATER THE CLINTONS WERE INVOLVED IN AT LEAST ONE OTHER FASTBUCK DEAL WITH OTHER CORPORATE INTERESTS HEAVILY DEPENDENT ON REGULATION SECOND IT WASN'T ONLY ARKANSAS THE CONFUSING LONGAGO ARCANA FROM ARKANSAS'S POLITICAL BACKWATERS ARE RELEVANT BECAUSE THERE ARE NOW SIGNS THAT THE SAME PRACTICES AND SAME INTERESTS THE SAME MORES ARE SPREADING THROUGH THE WASHINGTON BUREAUCRACY HILLARY CLINTON IT TURNS OUT POCKETED 100000 PLAYING COMMODITY FUTURES BETWEEN OCTOBER 1978 AND OCTOBER 1979 WITH JAMES B BLAIR THE POWERHOUSE ATTORNEY FOR FOOD GIANT TYSON FOODS INC LOOKING OVER HER SHOULDER IN A NEW YORK TIMES TEAM REPORT WRITTEN BY JEFF GERTH MR BLAIR SAID MRS CLINTON DECIDED THE SIZE OF THE TRADE AND WE DISCUSSED WHETHER SHE OUGHT TO BE LONG OR SHORT MRS CLINTON'S ATTORNEY SAYS IT WAS HER OWN MONEY AT RISK AND SOME OF HER ADMINISTRATION DEFENDERS SAID THAT IN PLAYING COMMODITIES SHE STUDIED UP ON FINANCIAL DATA INCLUDING READING THE WALL STREET JOURNAL THANKS FOR THE ENDORSEMENT BUT WE WOULDN'T ADVISE IT TO OTHER COMMODITIES AMATEURS FINANCIAL CYNICS WOULD LIKE TO KNOW MORE ABOUT THE TRADES AND THE MARKET PRICES AT THE TIME AND ABOUT THE ACCOUNTS BOTH HERS AND MR BLAIR'S THEIR PRINCIPAL BROKER WENT BANKRUPT BUT SAYS THAT MR BLAIR LEFT HAPPY WE WOULD ALSO BE CURIOUS ABOUT WHATEVER OTHER MONEY MRS CLINTON MADE IN 1978 AND 1979 YEARS FOR WHICH THE CLINTON TAX RETURNS HAVE NEVER BEEN RELEASED CORRESPONDENTS FOR THE KNIGHTRIDDER NEWSPAPERS ASKED THE PRESIDENT ABOUT THIS IN A MARCH 12 INTERVIEW AND PROVOKED A TIRADE AGAINST THE PRESS MR CLINTON'S FACE REDDENED IN ANGER THEY REPORTED AND HE ABRUPTLY ENDED THE INTERVIEW STRODE PAST HIS VISITORS WITHOUT SHAKING HANDS AND STOOD BEHIND HIS OVAL OFFICE DESK UNTIL THEY WERE ESCORTED OUT TYSON ALSO FIGURES IN A NEW SEC INVESTIGATION REPORTED FRIDAY BY THE JOURNAL'S BRUCE INGERSOLL AND MICHAEL K FRISBY THE AGENCY IS LOOKING INTO SUSPICIOUS 1992 TRADING IN THE STOCK OF ARCTIC ALASKA FISHERIES CORP JUST BEFORE THE ANNOUNCEMENT THAT IT WAS BEING ACQUIRED BY TYSON SEVERAL ARKANSAS INVESTORS ARE UNDER STUDY INCLUDING PHOENIX GROUP INC THE PRESIDENT OF PHOENIX WAS PATSY THOMASSON NOW DIRECTOR OF THE WHITE HOUSE OFFICE OF ADMINISTRATION FORMER ASSOCIATE OF DRUG CONVICT DAN LASATER IN A COMPANY THAT PRECEDED PHOENIX VISITOR TO VINCENT FOSTER'S OFFICE THE NIGHT OF HIS DEATH AND POINTPERSON IN THE CONTROVERSY OVER WHITE HOUSE PASSES AND SECURITY CLEARANCES SHE ISSUED A STATEMENT SAYING SHE HAD NOTHING TO DO WITH TRADES IN ARCTIC A SIMILAR DENIAL WAS ISSUED BY ASSOCIATE WHITE HOUSE COUNSEL WILLIAM KENNEDY III WHO HAS A RELATIVE UNDER INVESTIGATION IN THE ARCTIC DEAL MRS CLINTON'S COMMODITY STREAK STARTED JUST BEFORE BILL CLINTON'S ELECTION AS GOVERNOR OF ARKANSAS AND JUST AS HE COMPLETED HIS TERM AS ATTORNEY GENERAL THE TIMES STORY RECOUNTS A SERIES OF REGULATORY DECISIONS THAT FAVORED THE TYSON OPERATIONS AS WELL AS THE APPOINTMENT OF TYSON EXECUTIVES TO STATE POSTS PLUS SOME ALLEGATIONS OF TYSON BENEFITS UNDER THE CLINTON PRESIDENCY A TYSON SPOKESMAN SAYS IT ONLY TOOK ADVANTAGE OF NORMAL STATE INDUSTRIAL DEVELOPMENT PROGRAMS AND THERE IS ABSOLUTELY NO EVIDENCE THAT JIM BLAIR'S RELATIONSHIP WITH BILL OR HILLARY CLINTON HAD ANY IMPACT ON OUR TREATMENT MR BLAIR AND HIS WIFE OUR MR INGERSOLL REPORTED LAST WEEK SLEPT AT THE WHITE HOUSE THE NIGHT OF THE CLINTON INAUGURAL HE ALSO REPORTED ON A CONTROVERSY ABOUT SANITARY REQUIREMENTS THE DEPARTMENT OF AGRICULTURE HAS IMPOSED ON MEATPACKERS A ZERO TOLERANCE POLICY ON FECAL MATTER AND WAS CONSIDERING A SIMILAR REQUIREMENT FOR POULTRY THIS INITIATIVE WAS STOPPED BY AGRICULTURE SECRETARY MIKE ESPY WHOSE BROTHER HAD RECEIVED TYSON CONTRIBUTIONS IN AN UNSUCCESSFUL CONGRESSIONAL RACE IN MISSISSIPPI THE AP FOLLOWED THIS STORY REPORTING A QUOTE FROM WILSON S HORNE WHO RECENTLY RETIRED AFTER BEING IN CHARGE OF USDA'S MEAT AND POULTRY INSPECTORS FOR SIX YEARS THE MESSAGE WAS VERY VERY LOUD AND CLEAR THAT WE WERE TO STOP THE PROCESS SINCE WE'VE BEEN KNOWN TO EXPRESS DOUBTS ON THE MERITS OF ENVIRONMENTAL AND SANITARY REGULATIONS LET US DETAIL ANOTHER MATTER ONLY BRIEFLY TOUCHED ON IN THE TIMES STORIES THE PACIFIC FISHERY MANAGEMENT COUNCIL A FEDERAL COMMISSION ISSUED AN ORDER LAST SPRING DIVVYING UP THE 100MILLIONAYEAR WHITING CATCH OFF OREGON WASHINGTON AND CALIFORNIA THE BIG ARGUMENT IS ALWAYS OVER HOW MUCH CAN BE TAKEN BY LARGE FACTORYTRAWLER OPERATIONS AND HOW MUCH BY MOMANDPOP SHOREBASED FISHERMEN THE SPRING RULING GAVE 63 OF THE CATCH TO THE ONSHORE OPERATIONS THE COUNCIL'S DECISIONS MUST BE RATIFIED BY THE COMMERCE DEPARTMENT BUT NORMALLY THAT'S JUST A FORMALITY ON THOSE RARE OCCASIONS WHEN COMMERCE HAS DISAGREED WITH A LOCAL DECISION IT HAS SENT THE ISSUE BACK FOR RECONSIDERATION BY THE FISHING COUNCIL NOT THIS TIME WHEN THE FEDERAL REGISTER APPEARED ON APRIL 15 1993 FISHERMEN WERE SHOCKED TO DISCOVER THAT FACTORY TRAWLERS HAD BEEN ALLOCATED 70 OF THE WHITING CATCH THE LARGEST OPERATOR OF FACTORY TRAWLERS IS ARCTIC ALASKA FISHERIES CORP OWNED BY TYSON SEE ABOVE THERE HAVE BEEN THE USUAL DENIALS DOUGLAS HALL HEAD OF THE NATIONAL MARINE FISHERIES SERVICE SAYS THE TRAWLER TAKE WAS IN LINE WITH HISTORICAL NORMS AND SAYS THAT THE DECISION WAS MADE IN HIS OFFICE NOT BY COMMERCE SECRETARY RON BROWN REP ELIZABETH FURSE AN OREGON DEMOCRAT CALLED FOR HEARINGS ON THE ISSUE BUT WAS REBUFFED BY THE CONGRESSIONAL LEADERSHIP TYSON'S LEGAL WORK HAS LONG BEEN HANDLED PREDICTABLY BY THE ROSE LAW FIRM WHICH BRINGS US TO THE FINAL CITATION IN THE NEW CROP THE CURRENT NEW REPUBLIC COVER THE POISONED ROSE LJ DAVIS'S SUPERLATIVE ACCOUNT IS MUST READING ABOVE ALL FOR THOSE WHO ARE CONFUSED BY ALL THE EXCITEMENT ABOUT A TWOBIT LAND DEAL IN THE OZARKS WHAT MR DAVIS UNDERSTANDS IS THAT THE ROSE LAW FIRM FOR ALL ITS COLOR IS FUNDAMENTALLY AN APPENDAGE OF THE STEPHENS INTERESTS WHICH USE ARKANSAS AS HOME BASE FOR A WORLDSPANNING FINANCIAL EMPIRE IT FINANCED TYSON AND OTHER SUCCESSFUL ARKANSAS BUSINESSES IN ADDITION TO HANDLING THE BROKERAGE WHEN FRONT MEN FOR BCCI BOUGHT INTO FIRST AMERICAN BANK AND INSTALLED CLARK CLIFFORD TO RUN IT ARKANSAS MR DAVIS WRITES BEARS A CLOSE RESEMBLANCE TO A THIRD WORLD COUNTRY WITH A RULING OLIGARCHY A SMALL AND RELATIVELY POWERLESS MIDDLE CLASS AND A DISFRANCHISED LEADERLESS POPULACE THIS KIND OF CIVIC CULTURE WE SEE IN MANY ACTUAL THIRD WORLD COUNTRIES IS LIKELY TO PRODUCE A SPOILSTOTHEVICTOR ABOVETHELAW APPROACH TO GOVERNMENT THAT IS TO SAY THE KIND OF CARELESS ARROGANCE WE HAVE SEEN IN THE HANDLING OF WHITEWATER IN THE WHITE HOUSE PASSES IN WEBB HUBBELL'S LAW FIRM BILLINGS IN TRAVELGATE IN INTERVENTION INTO AN ONGOING CORRUPTION TRIAL IN THE HANDLING OF MR FOSTER'S DEATH AND IN THE HANDLING OF VARIOUS INDIVIDUALS INCLUDING ZOE BAIRD KIMBA WOOD LANI GUINIER BOBBY INMAN AND CHRIS EMERY A WHITE HOUSE USHER DISMISSED OVER PHONE CONVERSATIONS WITH BARBARA BUSH WITH NO WARNING AND LESS THAN A WEEK'S NOTICE WHITEWATER IS NOT MERELY ABOUT A LAND DEAL IT IS ABOUT ALL OF THESE THINGS AND ABOUT THE PLACE THEY ARE BIDDING TO ASSUME IN WASHINGTON WHICH GOD KNOWS IS GUILTY OF ENOUGH SINS OF ITS OWN ABOVE ALL IT IS ABOUT HYPOCRISY SAY THAT ONE AFTER ANOTHER THE EXPLANATIONS ARE INNOCENT HILLARY WAS LUCKY IN COMMODITIES AND UNLUCKY IN LAND SPECULATION JIM BLAIR AND PATSY THOMASSON ARE JUST FRIENDS JAMES AND SUSAN MCDOUGAL AND DAVID HALE AND DAN LASATER ARE JUST FORMER FRIENDS LAY ASIDE ALL SUSPICIONS AND ACCEPT EVERY COVER STORY WE ARE NOW SUPPOSED TO BELIEVE BILL CLINTON WAS ELECTED PRESIDENT TO REFORM THE SINS OF THE HIGHFLYING 1980S SEE RELATED LETTER LETTERS TO THE EDITOR WHITING ALLOCATION WSJ APRIL 20 1994 9403210021 YY94 MM04 9404200024 940315 SPREAD OF ILLEGAL HOME SEWING IS FUELED BY IMMIGRANTS BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS IN A DISPERSED VERSION OF THE SWEATSHOPS OF OLD A GROWING NUMBER OF ILLEGAL HOMESEWING OPERATIONS ARE DOING PIECEWORK FOR APPAREL CONTRACTORS THE PRACTICE IS SQUEEZING OUT LEGITIMATE GARMENT WORKERS AND CONTRACTORS ACCORDING TO REGULATORS AND UNION OFFICIALS BUT THE HOME SEWERS MANY OF THEM OTHERWISE UNEMPLOYABLE IMMIGRANTS SAY SEWING AT HOME IS THE ONLY WAY THEY CAN EKE OUT A LIVING WE HAVE MONEY WE HAVE FOOD WE HAVE HOUSING SAYS A MIDDLEAGED VIETNAMESE WOMAN WHO IS A HOME SEWER IN THE DALLAS SUBURB OF GARLAND IN HER TINY APARTMENT'S CRAMPED LIVING ROOM WHOSE FURNISHINGS INCLUDE TWO INDUSTRIAL SEWING MACHINES AND A BUDDHIST SHRINE THE WOMAN STITCHES TOGETHER WOMEN'S GARMENTS FROM PIECES OF CUT FABRIC FOR HER EFFORTS SHE EARNS LESS THAN 7000 A YEAR THE VIETNAMESE WOMAN WON'T GIVE HER NAME BECAUSE SHE KNOWS HER WORK IS ILLEGAL SINCE THE EARLY 1940S FEDERAL LAW HAS BANNED ATHOME PRODUCTION OF CERTAIN TYPES OF APPAREL AND JEWELRY INCLUDING WOMEN'S APPAREL FOR INTERSTATE COMMERCE EXCEPTIONS CAN BE MADE FOR CERTAIN KNITTED OUTERWEAR AND ACCESSORIES AND FOR PEOPLE WHO CAN PROVE THEY ARE CONFINED TO THEIR HOMES THE LAW WAS INTENDED TO PROTECT WORKERS FROM BEING UNDERPAID AND OVERWORKED TO ENSURE SAFE WORKING CONDITIONS AND TO MAKE IT MORE DIFFICULT FOR CONTRACTORS TO USE CHILD LABOR BUT IN RECENT YEARS THE PRACTICE OF USING HOME SEWERS HAS BEEN SPREADING RAPIDLY AGAIN THE PRODUCT OF A GROWING INFLUX OF IMMIGRANT WORKERS AND INCREASING COMPETITION FROM ABROAD THAT HAS FORCED GARMENT MAKERS TO CUT COSTS HOME SEWERS FILL THAT NEED NICELY THEY WORK FOR ROCKBOTTOM WAGES OFTEN LESS THAN THE MINIMUM WAGE AND PAID IN CASH AND SUPPLY THEIR OWN MACHINES THE CONTRACTOR'S RENT IS ALSO REDUCED SINCE HE NEEDS ONLY A SMALL NOFRILLS SHOP TO FINISH THE GARMENTS BEFORE DELIVERING THEM TO MANUFACTURERS REGULATORS SAY THE BIGGEST POCKETS OF HOME SEWING ARE IN THE DALLASFORT WORTH AREA WHERE ESTIMATES OF THE HOMESEWING POPULATION RANGE FROM 20000 TO 80000 AND IN NEW YORK AND CALIFORNIA SMALLER NETWORKS EXIST IN NORTHERN VIRGINIA AND MIAMI AND AROUND LARGE MILITARY BASES REGULATORS SAY MANY HOMESEWN GARMENTS GO ON TO SOME OF THE COUNTRY'S BIGGEST RETAILERS INCLUDING ACCORDING TO LABOR DEPARTMENT DOCUMENTS JC PENNEY CO SEARS ROEBUCK & CO DAYTON HUDSON CORP'S MERVYN'S DEPARTMENT STORES AND THE ARMY AND AIR FORCE EXCHANGE STORES THE RETAILERS ALL SAY THEY AREN'T AWARE OF ANY GARMENTS COMING FROM ILLEGAL SOURCES NOTING THAT THEIR CONTRACTS WITH SUPPLIERS OR COMPANY POLICIES FORBID THE USE OF ILLEGAL LABOR SOME CONTRACTORS ARE FAIRLY BOLD ABOUT THEIR HOMESEWING OPERATIONS FOR EXAMPLE JANEY FASHIONS BASED IN GARLAND AGREED TO COMPLY WITH THE LAW AFTER ADMITTING TO USING HOME SEWERS IN 1992 ACCORDING TO THE LABOR DEPARTMENT REPORT ON THE INVESTIGATION WHICH WAS OBTAINED BY THE INTERNATIONAL LADIES' GARMENT WORKERS' UNION YET IN A RECENT VIETNAMESELANGUAGE PUBLICATION JANEY'S OWNER KYLE TSAI ADVERTISED FOR SEWERS WHO COULD WORK IN HIS SHOP OR AT HOME MR TSAI SAYS THE AD MUST HAVE BEEN IN ERROR THE NEWSPAPER'S OWNER BICHPHUONG PHAM A FORMER HOME SEWER SAYS MR TSAI ASKED HER TO INCLUDE THE LINE ABOUT WORKING AT HOME TO UNION OFFICIALS THIS POINTS TO A LACK OF ENFORCEMENT EFFORT I THINK IT'S ABSOLUTELY BRAZEN THAT THEY TAKE OUT NEWSPAPER ADS SAYS BETTY BOYER ASSISTANT ORGANIZING DIRECTOR OF THE ILGWU IN DALLAS THE UNION MAINTAINS THAT IN THE DALLAS AREA ALONE THE HOMESEWING MOVEMENT HAS DEVASTATED ITS RANKS CLAIMING 30000 OF THE 35000 WOMEN'S GARMENT SEWING JOBS IT ESTIMATES ARE AVAILABLE ENFORCEMENT OFFICIALS SAY THEY ARE INTENSIFYING THEIR INVESTIGATIVE EFFORTS LAST SPRING THE LABOR DEPARTMENT STAGED A SWEEP THROUGH APPAREL CONTRACTORS' SHOPS IN EIGHT CITIES INCLUDING SOME CONTRACTORS WHO USED HOME WORKERS BILL A BELT A LABOR DEPARTMENT OFFICIAL IN DALLAS SAYS HIS OFFICE HAS CONDUCTED 487 HOMESEWING INVESTIGATIONS IN THE PAST THREE YEARS FOUND VIOLATIONS IN 41 OF THE CASES AND OBTAINED 54 INJUNCTIONS AGAINST CONTRACTORS INCLUDING ONE AGAINST DALLAS DRESS DESIGNER VICTOR COSTA INC IN 1992 A SPOKESWOMAN FOR THE DESIGNER SAYS HE HAS SINCE COMPLIED THE GENERAL ACCOUNTING OFFICE CONGRESS'S INVESTIGATIVE ARM HAS BEEN INVESTIGATING THE LINK BETWEEN HOME SEWERS IN THE DALLAS AREA AND BRANDNAME GARMENT MAKERS AND RETAILERS MARIA ECHAVESTE THE LABOR DEPARTMENT'S TOP WAGE AND HOUR ADMINISTRATOR IN WASHINGTON MET LAST MONTH WITH 15 FEDERAL REGULATORS FROM AROUND THE COUNTRY TO FIGURE OUT HOW TO DEAL WITH THE GARMENT INDUSTRY AND HOME SEWERS BUT CONTRACTORS USING HOME WORKERS ARE DIFFICULT TO CORNER IN LOS ANGELES FOR EXAMPLE THEY DELIVER BY NIGHT IN VANS AFTER MANY REGULATORS' SHIFTS END SAYS ROLENE OTERO DISTRICT DIRECTOR OF THE LABOR DEPARTMENT'S WAGE AND HOUR DIVISION AND DETECTION DOESN'T ENSURE ENFORCEMENT LAST YEAR LABOR DEPARTMENT AGENTS PARTICIPATED IN A RAID ON AN ORANGE COUNTY CALIF APARTMENT WHERE TWO WOMEN WERE WORKING ON SEWING MACHINES INCLUDING ONE MACHINE NEXT TO A TOILET BUT THE GARMENTS DIDN'T HAVE LABELS AND THE SEWERS REFUSED TO SPEAK SO REGULATORS COULDN'T PURSUE THE CASE BECAUSE HOME SEWERS FEAR THE GOVERNMENT AND NEED THE MONEY THE LABOR DEPARTMENT'S MS OTERO SAYS THEY'RE VERY UNCOOPERATIVE WITNESSES VIETNAMESE COMMUNITY LEADERS SAY THE PRACTICE SHOULD BE PROTECTED PERHAPS BY ALLOWING THE WORKERS TO BE CLASSIFIED AS INDEPENDENT CONTRACTORS NOT EMPLOYEES THIS IS THE ONLY WAY THEY KNOW HOW TO MAKE A LIVING SAYS TOM HA VICE CHAIRMAN OF THE VIETNAMESE AMERICAN COMMUNITY OF TARRANT COUNTY TEXAS TO THE VIETNAMESE WOMAN IN GARLAND HOME SEWING IS A GODSEND WHEN SHE CAME TO THE US SHE SPOKE LITTLE ENGLISH HAD LIMITED SKILLS AND NO CAR BUT SHE WAS TRAINED TO DESIGN AND SEW IN VIETNAM SO SHE LANDED WORK IN A GARMENT FACTORY IN BOSTON SHE MOVED TO TEXAS LAST YEAR WHEN THE FACTORY CLOSED GOT AN APARTMENT WITH A FRIEND BOUGHT HER SEWING MACHINES FOR 1800 AND WENT DOORTODOOR SEEKING WORK FROM CONTRACTORS HER EMPLOYERS BRING HER PIECES OF WOMEN'S JACKETS BLOUSES AND DRESSES FOR WHICH SHE IS PAID AS LITTLE AS 15 CENTS TO 25 CENTS EACH THE WORK LEAVES HER EXHAUSTED AND LONELY IT'S VERY HARD SHE SAYS NOBODY HELPS ME STILL WHILE HER INCOME PUTS HER WELL BELOW THE POVERTY LINE SHE COVERS LIVING EXPENSES AND SENDS MONEY TO HER SON IN COLLEGE AND FIVE OTHER CHILDREN STILL IN VIETNAM AND AFTER THE HARDSHIPS SHE ENDURED IN HER NATIVE LAND THIS LIFESTYLE IS JUST FINE WITH HER I FEEL BETTER HERE SHE SAYS WE TAKE CARE OF OURSELVES SEE RELATED LETTER LETTERS TO THE EDITOR GARMENTS BAGGED BY STATE AGENCY WSJ APRIL 20 1994 9403150085 YY94 MM04 9404200022 940304 LAW ONCE HURT PEOPLE CAN BE COMPENSATED TWICE UNDER DOUBLERECOVERY RULES BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL IT ALMOST SOUNDS LIKE INSURANCE FRAUD COLLECT TWICE FOR THE SAME INJURY BUT DOUBLE RECOVERY IS PERFECTLY LEGAL IN ABOUT HALF THE STATES WHERE VICTIMS CAN BE REIMBURSED ONCE FROM THEIR OWN INSURANCE AND THEN AGAIN BY SUING THE COMPANY OR PERSON RESPONSIBLE FOR AN ACCIDENT DOUBLE DIPPING IS TURNING INTO AN IRRESISTIBLE TARGET FOR LAWMAKERS LOOKING TO CUT WASTE IN THE MEDICAL AND LEGAL SYSTEMS THE CLINTON HEALTH PLAN AND AT LEAST NINE CONGRESSIONAL PROPOSALS ARE SEEKING TO BAR THE PRACTICE IN MEDICALMALPRACTICE CASES WHERE DOUBLE DIPPING IS COMMON BY REDUCING THE TRIAL AWARD BY THE AMOUNT OF INSURANCE IT'S ALSO UNDER FIRE FROM THE INSURANCE INDUSTRY WHICH ARGUES THAT THE PRACTICE DRIVES UP THE COST OF AUTO AND HEALTH INSURANCE OF THE 100 BILLION PAID IN ANNUAL AUTO PREMIUMS FOR EXAMPLE ABOUT 5 BILLION GOES TO PAY FOR MEDICAL EXPENSES THAT ACCIDENT VICTIMS HAVE RECOUPED THROUGH OTHER SOURCES ESTIMATES DALE NELSON AN ACTUARY WITH STATE FARM INSURANCE COS BLOOMINGTON ILL THE OPPORTUNITY FOR DOUBLE RECOVERY IS A LEGACY FROM A TIME WHEN FEW PEOPLE HAD INSURANCE AND COURTS DIDN'T WANT TO PENALIZE THE INSURED SINCE THE 1970S ABOUT 30 STATES HAVE TAKEN STEPS TO LIMIT DUAL RECOVERIES THOUGH MANY PERMIT THEM IN CERTAIN CASES ALTHOUGH INSURERS CAN AVOID DOUBLE DIPPING BY PROHIBITING IT IN THEIR POLICIES LEGAL VERDICTS FREQUENTLY COME YEARS AFTER MEDICAL EXPENSES HAVE BEEN PAID INSURERS OFTEN ARE RELUCTANT TO GO TO COURT TO RECOUP THE COSTS A RECENT EXAMPLE OF A DOUBLE RECOVERY CAME IN THE CASE OF THE LATE NELENE FOX WHOSE FAMILY WON AN 89 MILLION JURY VERDICT IN A SUIT AGAINST THE HEALTH NET HEALTHMAINTENANCE ORGANIZATION FOR REFUSING TO COVER AN EXPENSIVE BREASTCANCER TREATMENT THE JURY AWARD INCLUDED ABOUT 50000 TO COVER THE COST OF DRUGS EVEN THOUGH THEY HAD BEEN DONATED BY PHARMACEUTICAL FIRMS AS PART OF THE FOXES' FUND RAISING TO PAY FOR THE TREATMENT BEFORE THE TRIAL BEGAN HEALTH NET A WOODLAND HILLS CALIF UNIT OF HN MANAGEMENT HOLDINGS HAD ARGUED THAT EVEN IF THE FOXES WON COMPENSATING THEM FOR THE COST OF DONATED DRUGS WOULD GIVE THEM A WINDFALL BUT HEALTH NET'S LAWYER LYLE SWALLOW CONCEDES THE JUDGE WAS CORRECT IN ALLOWING THE DOUBLE RECOVERY WHICH IS PERMITTED UNDER STATE LAW SUCH RECOVERIES REST ON A PROCEDURAL RULE THAT PREVENTS DEFENDANTS FROM INTRODUCING EVIDENCE THAT A PLAINTIFF HAS INSURANCE OR OTHER OUTSIDE SOURCES OF COMPENSATION IN ADDITION TO REWARDING PLAINTIFFS WHO HAVE INSURANCE THE RULE IS DESIGNED TO PREVENT DEFENDANTS WHO HAVE BEEN NEGLIGENT FROM GETTING OFF THE HOOK CONSUMER GROUPS STRONGLY SUPPORT THE RULE THEY CONTEND DEFENDANTS WILL HAVE LESS INCENTIVE TO PROTECT THEIR PATIENTS CUSTOMERS OR EMPLOYEES IF THEY DON'T HAVE TO PAY THE FULL COST OF INJURIES FOR WHICH THEY'RE RESPONSIBLE PLAINTIFFS' LAWYERS WHO TYPICALLY KEEP A PERCENTAGE OF COURT AWARDS AS THEIR FEE WILL HAVE LESS INCENTIVE TO TAKE CASES WHERE THE AMOUNT OF INSURANCE MAY REDUCE THE AMOUNT OF THE VERDICT CONSUMER ADVOCATES SAY IF YOU DECREASE THE AWARD THE ATTORNEY'S FEE GETS DECREASED AND YOU MAY NOT HAVE LAWSUITS BEING BROUGHT IN CASES WHERE INJURED PEOPLE DESERVE COMPENSATION SAYS PAMELA GILBERT A LOBBYIST WITH PUBLIC CITIZEN THE ADVOCACY GROUP AFFILIATED WITH RALPH NADER MS GILBERT SAID THE MEASURE BANNING DOUBLE RECOVERIES IS ITS BIGGEST COMPLAINT ABOUT THE MEDICALLIABILITY PROVISIONS IN THE CLINTON HEALTH PLAN PUBLIC CITIZEN'S ARGUMENT DOESN'T WASH WITH THOSE WHO WANT THE PRACTICE BANNED THEY SEE MONEY BEING WASTED ON PEOPLE WHO DON'T NEED IT THEY NOTE THAT ALMOST EVERYONE AUTOMATICALLY GETS WORKERS' COMPENSATION OR OTHER DISABILITY BENEFITS BUT ADVOCATES OF CHANGE CONTEND THAT SELFHELP BY INSURERS IS NO SUBSTITUTE FOR LEGISLATION FORCING THE COMPANIES TO FILE LAWSUITS TO GET THEIR MONEY BACK SIMPLY ADDS ANOTHER LAYER OF COMPLICATION AND EXPENSE SAYS MARTIN CONNER PRESIDENT OF THE AMERICAN TORT REFORM ASSOCIATION IN WASHINGTON WHICH SEEKS THE ELIMINATION OF DOUBLE RECOVERIES SCHOOLCHILDREN HAVE A CONSTITUTIONAL RIGHT NOT TO BE SEXUALLY MOLESTED BY THEIR TEACHERS A FEDERAL APPEALS COURT SAID IN A RULING THAT'S EXPECTED TO SPARK NEW LITIGATION THE FIFTH US CIRCUIT COURT OF APPEALS ALSO RULED THAT PRINCIPALS AND SCHOOL SUPERINTENDENTS CAN BE HELD LIABLE FOR MOLESTATION IF THEY SHOWED DELIBERATE INDIFFERENCE THE CASE INVOLVED A TEACHER AT A TAYLOR TEXAS HIGH SCHOOL WHO ADMITTED HAVING A SEXUAL RELATIONSHIP WITH A 15YEAROLD STUDENT FOR SEVERAL MONTHS THE RELATIONSHIP WAS WELL KNOWN BUT THE PRINCIPAL ALLEGEDLY PLAYED IT DOWN AND FAILED TO DISCIPLINE OR ISSUE WARNINGS TO THE TEACHER ABOUT HIS BEHAVIOR THE TEACHER WHO WAS ALSO A SPORTS COACH RESIGNED AND WAS CONVICTED OF CRIMINAL CHARGES RELATED TO MOLESTATION OF THE GIRL IF THE CONSTITUTION PROTECTS A SCHOOLCHILD AGAINST BEING TIED TO A CHAIR OR AGAINST ARBITRARY PADDLINGS THEN SURELY THE CONSTITUTION PROTECTS A SCHOOLCHILD FROM PHYSICAL SEXUAL ABUSE THE COURT SAID THE RULING THAT THE PRINCIPAL COULD BE SUED FOR HIS INACTION WAS ONE OF THE FIRST APPELLATE DECISIONS TO ALLOW SUCH LITIGATION AGAINST A SCHOOL SUPERVISOR THE CASE WAS RETURNED TO THE LOWER COURT FOR TRIAL THIS IS GOING TO MAKE A BIG BIG DIFFERENCE IN WHAT OUR UNDERSTANDING OF WHAT THE LAW IS SAID DAVID M FELDMAN A HOUSTON ATTORNEY WHO REPRESENTED THE SCHOOL DISTRICT AND SUPERVISORS HE SAID HE DIDN'T KNOW WHETHER HE WOULD CHALLENGE THE RULING SEXUALMOLESTATION LAWSUITS AGAINST SCHOOL DISTRICTS ARE PROLIFERATING BECAUSE OF A 1992 SUPREME COURT RULING THAT ALLOWED SCHOOLCHILDREN TO RECOVER DAMAGES IN SUCH CASES MR FELDMAN SAID HE HAS A DOZEN SUCH CASES IN HIS PRACTICE NOTED EDWIN V KARGER A DEFENDANT IN THE INSIDERTRADING SCHEME INVOLVING A FORMER PARALEGAL AT THE NEW YORK LAW FIRM SKADDEN ARPS SLATE MEAGHER & FLOM HAS AGREED TO PAY 326000 TO SETTLE CIVIL CHARGES BY THE SECURITIES AND EXCHANGE COMMISSION MR KARGER 46 YEARS OLD PLEADED GUILTY TO RELATED CRIMINAL CHARGES IN JANUARY AND RECEIVED THREE YEARS' PROBATION AND COMMUNITY SERVICE HE ADMITTED TRADING IN 1990 ON INSIDE INFORMATION PROVIDED TO HIM BY THE FATHER OF A FRIEND OF THE PARALEGAL JUNDA WOO AND MARGARET A JACOBS CONTRIBUTED TO THIS ARTICLE SEE RELATED LETTER LETTERS TO THE EDITOR LIMIT DOUBLE RECOVERY BY NEGLIGENCE VICTIMS WSJ APRIL 20 1994 9403040008 YY94 MM04 9404190177 940419 NATIONSBANK 1STPERIOD NET FELL 13 BUT CHASE PROFIT MORE THAN DOUBLED BY G BRUCE KNECHT STAFF REPORTER OF THE WALL STREET JOURNAL NATIONSBANK'S FIRSTQUARTER EARNINGS FELL 13 AFTER A YEAREARLIER GAIN FROM AN ACCOUNTING CHANGE BUT SHOWED SHARP IMPROVEMENT IN OPERATING EARNINGS CHASE MANHATTAN CORP'S PROFIT MORE THAN DOUBLED MEANWHILE PNC BANK CORP'S NET CLIMBED 23 BUT CONTINENTAL BANK CORP'S PROFIT ALSO AFFECTED BY A 1993 ACCOUNTING CHANGE TUMBLED 55 IN SPITE OF SLIGHTLY BETTER OPERATING RESULTS ALL FOUR BANKS WERE AIDED BY INCREASED FEE REVENUES AND CONTINUED WIDE MARGINS BETWEEN LENDING RATES AND THE BANKS' COST OF FUNDS WHILE THE STOCK MARKET'S REACTION WAS MIXED ANALYSTS NOTED THAT BANK STOCKS OVERALL WERE REACTING TO THE FEDERAL RESERVE'S DECISION YESTERDAY TO RAISE THE FEDERALFUNDS RATE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY NATIONSBANK STOCK ROSE 125 CENTS OR 02 TO CLOSE AT 5225 CHASE'S SHARES ROSE 625 CENTS OR 19 TO 34375 CONTINENTAL'S CLOSED AT 33875 UNCHANGED AND PNC'S STOCK FELL 1125 OR 38 TO 28875 EXCLUDING THE 200 MILLION YEAREARLIER ACCOUNTING CHANGE RELATED TO INCOME TAXES NATIONSBANK EARNINGS JUMPED 48 FROM THE FIRST QUARTER OF 1993 ON SOLID LOAN GROWTH AND FEEINCOME GAINS NONINTEREST INCOME ROSE 11 TO 680 MILLION SINCE THE END OF 1993 TRADING FEES AND REVENUE PARTLY FROM THE BANK'S RECENTLY ACQUIRED CHICAGO RESEARCH & TRADING GROUP LTD UNIT ACCOUNTED FOR 89 MILLION OF THAT FIGURE A 26 MILLION INCREASE FROM THE FOURTH QUARTER THOSE TRADING GAINS EARNED AMID SUBSTANTIAL MARKET FLUCTUATIONS HELPED CALM FEARS ABOUT HOW CHICAGO RESEARCH MIGHT PERFORM IN A VOLATILE ENVIRONMENT THE CHARLOTTE NC BANK'S 916 BILLION IN AVERAGE LOANS AND LEASES REPRESENTED A 25 BILLION OR 3 GAIN FROM THE FOURTH QUARTER OF 1993 THE BIGGEST INCREASES CAME FROM CONSUMER LOANS PARTICULARLY MORTGAGE AND INSTALLMENT LOANS ON THE EXPENSE SIDE NATIONSBANK DEMONSTRATED THAT IT COULD DERIVE EFFICIENCIES FROM RECENT ACQUISITIONS NONINTEREST EXPENSE WAS 122 BILLION ROUGHLY FLAT COMPARED WITH THE FOURTH QUARTER IN SPITE OF INCREASED REVENUE THE BANK SPECIFICALLY CITED A 7 MILLION DROP IN MARKETING EXPENSES AND A 5 MILLION DECREASE IN OCCUPANCY EXPENSES THE QUARTERLY FIGURES EXCEEDED ANALYSTS' PROJECTIONS AND PROMPTED DENNIS F SHEA ANALYST WITH MORGAN STANLEY & CO TO RAISE HIS YEARLY EARNINGS ESTIMATE FOR NATIONSBANK TO 605 A SHARE FROM 575 THE WAY TO REALLY GET OPERATING LEVERAGE OUT OF THIS COMPANY IS GROWING THOSE REVENUES HE SAID THAT'S WHAT I FIND ENCOURAGING IN THIS QUARTER CHASE SAID ITS EARNINGS WERE HELPED BY STRONG INCREASES IN FEE INCOME CONTINUED HIGH TRADING REVENUES CAPITAL GAINS FROM ITS MERCHANTBANKING OPERATIONS AND A REDUCTION OF ITS LOANLOSS PROVISION FEE INCOME WAS UP 22 TO 446 MILLION AND THE IMPROVEMENT WAS BROADLY BASED COMING FROM CREDIT CARDS MORTGAGE BANKING TRUST AND CUSTODY OPERATIONS AND INVESTMENT BANKING TRADING REVENUE TOTALED 179 MILLION SLIGHTLY HIGHER THAN BOTH THE YEAREARLIER PERIOD AND THE LAST QUARTER OF 1993 THE TRADING IS PARTICULARLY IMPRESSIVE BECAUSE OF THE VOLATILE CONDITIONS IN THE QUARTER SAID RAPHAEL SOIFER A BANK ANALYST WITH BROWN BROTHERS HARRIMAN & CO IT WAS A GOOD QUARTER MR SOIFER ADDED BUT IT'S NOT AS GOOD AS THE HEADLINE NUMBER SUGGESTS BECAUSE THERE WERE A NUMBER OF NONRECURRING EVENTS HE REFERRED TO THE LIQUIDATION OF REALESTATE ASSETS WHICH PRODUCED 53 MILLION AND THE SALE OF BRADY BONDS THAT YIELDED 71 MILLION THE NEW YORK BANK'S LOANS OUTSTANDING DECLINED SLIGHTLY TO 613 BILLION IN THE FIRST QUARTER FROM 621 BILLION IN THE YEAREARLIER PERIOD HOWEVER THE PROVISION FOR POSSIBLE CREDIT LOSSES DECLINED FAR MORE SHARPLY TO 160 MILLION FROM 360 MILLION IN THE FIRST QUARTER OF 1993 PITTSBURGHBASED PNC WHICH CITED STRONGERTHANEXPECTED LOAN GROWTH AND HIGHER LEVELS OF FEE INCOME ALSO SAID ITS RECENTLY ACQUIRED SEARS MORTGAGE BANKING GROUP MET EXPECTATIONS IN THE QUARTER EXCLUDING ACQUISITIONS LOANS INCREASED 37 FROM THE 1993 FOURTH QUARTER INCLUDING ACQUISITIONS LOANS GREW 148 OVER THE PREVIOUS QUARTER ON THE FEE SIDE INVESTMENTMANAGEMENT AND TRUST INCOME INCREASED 101 WHILE SERVICE CHARGES FEES AND COMMISSIONS INCREASED 79 EXCLUDING NET SECURITIES GAINS NONINTEREST INCOME AS A PERCENTAGE OF TOTAL REVENUE WAS 311 IN THE FIRST QUARTER COMPARED WITH 274 A YEAR EARLIER PNC'S STOCK HAS BEEN HAMMERED THE PAST FEW MONTHS REFLECTING A GENERAL INVESTOR DISTASTE FOR BANKING STOCKS AS WELL AS CONCERN ABOUT THE BANK'S CHANGING STRUCTURE AS A RESULT OF THE SEARS ACQUISITION WHICH MADE IT A MAJOR MORTGAGE SERVICER AND LOAN ORIGINATOR CONTINENTAL THE CHICAGO BANK THAT WILL BE ACQUIRED BY BANKAMERICA CORP SAID THAT EXCLUDING THE 1993 ACCOUNTING CHARGE PROFIT WOULD HAVE RISEN 33 DESPITE LOWER REVENUE AND INCREASED OPERATING EXPENSES MOSTLY BECAUSE OF A SHARP DECLINE IN CREDIT COSTS THE FIRSTQUARTER PROVISION FOR CREDIT LOSSES WAS 30 MILLION DOWN FROM 56 MILLION A YEAR EARLIER BANKING REVENUE DECLINED TO 128 MILLION DOWN FROM 145 MILLION IN THE YEAREARLIER PERIOD CORPORATEFINANCE AND TRADING REVENUE BOTH DECLINED ALTHOUGH FEE AND COMMISSION INCOME INCREASED BANKAMERICA'S ACQUISITION OF CONTINENTAL IS EXPECTED TO CLOSE IN THE THIRD QUARTER OF THIS YEAR EMORY THOMAS JR AND GABRIELLA STERN CONTRIBUTED TO THIS ARTICLE 9404190176 940419 WHO'S NEWS GENRAD INC GENRAD INC CONCORD MASS ADRIANA STADECKER VICE PRESIDENT EXECUTIVE OPERATIONS AT DIGITAL EQUIPMENT CORP WAS ELECTED A DIRECTOR OF THIS SEMICONDUCTOR TESTING CONCERN THE MOVE EXPANDS THE BOARD TO SEVEN MEMBERS 9404190175 940419 INTERNATIONAL JAPAN'S SURPLUS IN US TRADE INCREASES 21 BUT GAP IS SEEN SHRINKING ON TOKYO IMPORT RISE AND EXPORT DECLINE BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S BILATERAL TRADE SURPLUS WITH THE US WIDENED SHARPLY IN MARCH AS ITS OVERALL MERCHANDISE TRADE SURPLUS HIT A NEW RECORD BUT ECONOMISTS SAID SURGING JAPANESE IMPORTS AND FALLING EXPORTS SHOULD START PULLING DOWN BOTH FIGURES BY MIDYEAR IN MARCH THE NATION'S GLOBAL TRADE SURPLUS WIDENED TO 1395 BILLION UP 42 FROM THE 1340 BILLION SURPLUS POSTED IN THE YEAREARLIER PERIOD JAPAN'S BILATERAL SURPLUS WITH THE US JUMPED 21 TO 496 BILLION IN THE SAME PERIOD WHILE THE US PROBABLY WILL SEIZE ON THE GROWING TRADE IMBALANCE AS EVIDENCE THAT JAPAN NEEDS TO DO MORE TO REDUCE ITS SURPLUS ECONOMISTS NOTE THAT THESE DOLLARDENOMINATED TRADE STATISTICS ARE DISTORTED BY THE YEN'S STRENGTH AGAINST THE DOLLAR OVER THE PAST YEAR THE YEN HAS GAINED NEARLY 12 AGAINST THE DOLLAR CALCULATED IN YEN JAPAN'S OVERALL SURPLUS IN MARCH NARROWED 7 ITS SECOND MONTH OF DECLINE WHILE ITS BILATERAL SURPLUS WITH THE US ROSE AT THE SLOWER RATE OF 82 FOR THE ENTIRE JAPANESE FISCAL YEAR WHICH ENDED MARCH 31 THE NATION'S OVERALL TRADE SURPLUS HIT A RECORD 12199 BILLION UP 10 FROM THE PRIOR YEAR CALCULATED IN YEN HOWEVER THE SURPLUS DECLINED FOR THE FIRST TIME SINCE 1990 FALLING 47 JAPAN'S TRADE SURPLUS WITH ASIA IN MARCH WAS 653 BILLION UP JUST OVER 11 FROM THE PREVIOUS YEAR THE EMPHASIS ON DOLLARDENOMINATED FIGURES HAS ALSO OBSCURED THE EXTENT TO WHICH THE STRONG YEN AND A GROWING EMPHASIS ON OVERSEAS PRODUCTION BY JAPANESE COMPANIES HAVE CUT JAPANESE EXPORTS WHILE BOOSTING IMPORTS IN VOLUME TERMS JAPAN'S EXPORTS FELL 42 IN MARCH AND ITS IMPORTS ROSE 77 FOR THE 11TH STRAIGHT MONTH OF INCREASES THAT IMPORT RISE WAS PACED IN DOLLAR TERMS BY A 41 INCREASE IN OFFICE EQUIPMENT IMPORTS A 40 SURGE IN MEAT PRODUCTS AND A 39 BOOST IN SEMICONDUCTOR IMPORTS ECONOMISTS SAY SUCH STRONG IMPORT PERFORMANCE IS PARTICULARLY INTRIGUING GIVEN THAT THE SLUGGISH JAPANESE ECONOMY IS HOLDING DOWN DOMESTIC DEMAND WHEN JAPAN STARTS RECOVERING I EXPECT TO SEE THE SURPLUS WITH THE US SHRINK IT WON'T GO AWAY BUT THE FIGURE SHOULD ERODE QUITE RAPIDLY SAID CHRIS CALDERWOOD AN ECONOMIST AT BARCLAYS DE ZOETE WEDD IN TOKYO AS A RESULT OF THESE FORCES ECONOMISTS SAID THEY STILL EXPECT THE DOLLARDENOMINATED SURPLUS TO BEGIN FALLING BY MIDYEAR MOST OF THE UNDERLYING TRENDS TELL ME IT SHOULD START DECLINING VERY SOON POSSIBLY FROM APRIL ONWARD SAID MICHAEL HARTNETT OF SCHRODERS SECURITIES IN TOKYO WHO SAID THE STRONG YEN AND INCREASING DOMESTIC DEMAND SHOULD DEAL THE SURPLUS A DOUBLE WHAMMY LATER IN THE YEAR 9404190174 940419 INTERNATIONAL HUSSEIN CRACKS DOWN ON HAMAS GROUP WHICH GIVES TERMS FOR TALKS WITH ISRAEL BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL AMMAN JORDAN IN A TEST OF JORDAN'S FLEDGLING DEMOCRACY KING HUSSEIN IS CRACKING DOWN ON RELIGIOUS EXTREMISTS INCLUDING THE PALESTINIAN GROUP HAMAS IN RESPONSE HAMAS FOR THE FIRST TIME HAS SET FORTH ITS CONDITIONS FOR NEGOTIATING WITH ISRAEL OVER THE WEEKEND THE JORDANIAN MONARCH CONVENED A SPECIAL NEWS CONFERENCE HERE TO DENY ISRAELI AND US CHARGES THAT JORDAN HAS BECOME A HAVEN FOR THE ACTIVITIES OF HAMAS AN ISLAMIC GROUP OPPOSED TO PEACE WITH ISRAEL THE ALLEGATIONS HAD ARISEN LATE LAST WEEK AFTER HAMAS LEADERS IN JORDAN TOOK RESPONSIBILITY FOR A PAIR OF SUICIDE BOMBINGS IN NORTHERN ISRAEL THAT KILLED 12 PEOPLE WE WILL NOT ACCEPT THAT THIS TERRITORY BE TURNED INTO FIGHTING GROUNDS FOR THE SONS OF PALESTINE OR JORDAN THE KING SAID HE STRESSED THAT THE PALESTINE LIBERATION ORGANIZATION NOT HAMAS OR ANY OTHER PALESTINIAN GROUP REMAINS THE ONLY AUTHORIZED REPRESENTATIVE OF PALESTINIANS IN JORDAN PEOPLE CHALLENGING THIS LINE HE SAID WILL HAVE TO ANSWER FOR IT THE KING'S WARNING TO HAMAS WHICH LONG HAS HAD PUBLICRELATIONS AND OTHER ORGANIZATIONAL OFFICES IN JORDAN IS PART OF A BROADER CAMPAIGN HERE TO SUPPRESS ALLEGED EXTREMISTS SINCE THE BEGINNING OF THE YEAR JORDAN HAS ARRESTED 74 SUSPECTED RADICALS MANY OF WHOM ARE BELIEVED TO HAVE RECEIVED MILITARY TRAINING IN WARRING AFGHANISTAN DURING THE 1980S NONE OF THE DETAINEES HAS YET BEEN BROUGHT TO TRIAL BUT SECURITY OFFICIALS CLAIM THEY WERE PART OF A SCHEME TO DESTABILIZE THE KINGDOM AND MAY HAVE COMMITTED A SPATE OF RECENT BOMBINGS OF SOFTPORN MOVIE THEATERS AROUND JORDAN FOR KING HUSSEIN SUPPRESSING EXTREMISTS PARTICULARLY HAMAS IS RISKY BUSINESS THE KING HAS ENJOYED TREMENDOUS POPULARITY SINCE 1990 WHEN HE RESISTED WESTERN PRESSURE TO JOIN THE MILITARY COALITION AGAINST IRAQ JORDAN'S BIGGEST TRADING PARTNER HE IS ALSO ADMIRED FOR INTRODUCING A MEASURE OF FREE SPEECH AND PARLIAMENTARY DEMOCRACY TO JORDAN IN THE PAST FIVE YEARS INCLUDING THE RISE OF A SUBSTANTIAL BLOC OF ISLAMIC OPPOSITION PARTIES THUS MOVING AGAINST ISLAMIC MILITANTS WHOSE OWN APPEAL HAS BEEN SOARING AMONG JORDAN'S ROUGHLY 15 MILLION PALESTINIANS DOESN'T DO THE KING'S HARDEARNED DEMOCRATIC IMAGE MUCH GOOD TO CUSHION THE APPEARANCE OF CAVING IN TO ISRAELI AND US DEMANDS ON HAMAS THE JORDANIAN CABINET LASHED OUT AT ISRAELI PRIME MINISTER YITZHAK RABIN FOR ACCUSING JORDAN LAST WEEK OF SHELTERING THE PALESTINIAN GROUP JORDAN A CABINET STATEMENT SAID WILL NEVER SUCCUMB TO ANY FORMS OF PRESSURE THREAT OR INTIMIDATION MUZZLING HAMAS IN JORDAN WHILE IT MAY SUIT THE EXIGENCIES OF THE MIDEAST PEACE PROCESS RAISES DIFFICULT QUESTIONS FOR THE LIBERALIZING KINGDOM JORDANIAN SECURITY AGENCIES HAVE CLOSELY MONITORED THE GROUP'S ACTIVITIES IN JORDAN FOR MANY YEARS DURING THAT TIME THEY APPARENTLY FOUND NO REASON TO DOUBT THE GROUP'S CLAIM THAT IT DIDN'T INTERFERE IN JORDANIAN POLITICS OR CONDUCT MILITARY PLANNING OR OPERATIONS IN JORDAN RATHER HAMAS LIKE THE EXTREMIST JEWISH GROUPS THAT OPERATE IN THE US HAS ALWAYS CONFINED ITSELF TO PUBLICRELATIONS FUNDRAISING AND OTHER SERVICES IN JORDAN SAID IBRAHIM GHOSHE THE GROUP'S JORDANIAN SPOKESMAN IN AN INTERVIEW LAST WEEK BEFORE KING HUSSEIN'S REMARKS HAMAS HAS SIMILAR CHAPTERS IN THE US SYRIA LEBANON IRAN AND OTHER COUNTRIES MR GHOSHE SAID HAMAS HAS BROADENED ITS TARGETS FROM ISRAELI SOLDIERS AND SETTLERS IN THE OCCUPIED TERRITORIES TO ISRAELI CIVILIANS WITHIN ISRAEL PROPER IN THE WAKE OF THE FEBRUARY MASSACRE OF SOME 30 MUSLIM WORSHIPPERS IN HEBRON SINCE RABIN WAS NOT ABLE TO CONTROL HIS ARMY AND SETTLERS FROM ATTACKING CIVILIANS MR GHOSHE SAID HAMAS UNDER PRESSURE FROM THE PALESTINIAN PEOPLE WAS OBLIGED TO COUNTERATTACK MR GHOSHE AND OTHER HAMAS OFFICIALS IN JORDAN COULDN'T BE REACHED TO COMMENT FOLLOWING THE KING'S COMMENTS THIS WEEKEND BUT THE GROUP RELEASED A STATEMENT SUNDAY IN AMMAN REITERATING THAT IT HAS NEVER ENGAGED IN ANY TYPE OF MILITARY OPERATIONS OR PLANNING IN JORDAN THE STATEMENT ALSO SET FORTH FOR THE FIRST TIME HAMAS'S CONDITIONS FOR NEGOTIATING PEACE WITH ISRAEL IN HIS INTERVIEW LAST WEEK MR GHOSHE PREVIEWED THE HAMAS DEMANDS HAMAS HE SAID ASSUMES THAT ALL OF PALESTINE BOTH ITS 1948 AND 1967 BORDERS IS PALESTINIAN LAND BUT IF RABIN WITHDRAWS COMPLETELY FROM ALL THE LAND HE OCCUPIED IN 1967 INCLUDING EAST JERUSALEM AND IF THE US HELPS PALESTINIANS ESTABLISH A REAL PARLIAMENT THAT REPRESENTS PALESTINIANS INSIDE AND OUTSIDE THE OCCUPIED TERRITORIES THEN HAMAS WILL BE READY TO RESPECT THE DECISON OF THIS PARLIAMENT ABOUT THE FUTURE OF ALL OF PALESTINE 9404190173 940419 WHO'S NEWS AMERITECH CORP AMERITECH CORP CHICAGO JACK E REICH 43 YEARS OLD WAS NAMED PRESIDENT OF THIS TELECOMMUNICATIONS COMPANY'S CUSTOM BUSINESS UNIT A POSITION THAT HAS BEEN VACANT SINCE JANUARY MR REICH WAS FORMERLY PRESIDENT MULTINATIONAL ACCOUNTS AT MCI COMMUNICATIONS CORP 9404190172 940419 INTERNATIONAL CHINESE ECONOMY SHOWS SIGNS OF SLOWING BUT INFLATION IS SOARING BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL CHINA'S SIZZLING ECONOMY IS SHOWING FAINT SIGNS OF COOLING BUT SOME ANALYSTS WARN THAT OFFICIAL FIGURES MAY UNDERSTATE THE COUNTRY'S GREATEST PERIL INFLATION THE STATE STATISTICAL BUREAU MONDAY SAID GROSS DOMESTIC PRODUCT IN WHAT HAS BECOME THE WORLD'S FASTESTGROWING MAJOR ECONOMY ROSE A PRICEADJUSTED 127 IN THE FIRST THREE MONTHS OF THIS CALENDAR YEAR THAT WAS A SLIGHT SLOWING FROM LAST YEAR'S 134 GROWTH RATE IN CONTRAST CONSUMER PRICES IN THE FIRST QUARTER SHOT UP 201 FROM A YEAR EARLIER A SHARP ACCELERATION FROM THE 1993 NATIONAL INFLATION RATE OF 13 IN CHINA'S 35 MAJOR CITIES PRICES ROSE 246 IN MARCH FROM A YEAR EARLIER OFF SLIGHTLY FROM FEBRUARY'S 259 INFLATION RATE CHINA'S STRONG GROWTH IN THE 15 YEARS SINCE IT INTRODUCED SWEEPING ECONOMIC REFORMS HAS DAZZLED MUCH OF THE REST OF THE WORLD FOREIGN INVESTORS ARE POURING BILLIONS OF DOLLARS INTO FACTORIES AND OTHER PROJECTS HOPING TO TAKE ADVANTAGE OF CHINA'S EMERGING MARKETPLACE AND ITS ABUNDANT CHEAP LABOR BUT HOPES FOR CHINA DEPEND ON ITS ECONOMIC STABILITY AND THE INFLATION FIGURES DON'T REASSURE ANALYSTS THEY NOTE THAT THE BIG INCREASE IN CHINA'S NATIONAL INFLATION FIGURES SUGGESTS THAT INFLATION HAS SPREAD FROM CITIES TO THE COUNTRYSIDE WAGES IN CHINA HAVEN'T ALWAYS KEPT UP WITH INFLATION IF PRICES IN THE COUNTRYSIDE WHERE TWOTHIRDS OF CHINA'S 12 BILLION PEOPLE LIVE START TO RISE TOO FAST SOCIAL UNREST COULD RESULT THESE ANALYSTS WORRY IF INFLATION KEEPS RISING THE WHOLE THING COULD EXPLODE JOHN WONG OF SINGAPORE'S INSTITUTE OF EAST ASIAN POLITICAL ECONOMY SAID IN AN INTERVIEW LAST WEEK INFLATION IS THE PARAMOUNT CONCERN OF CHINA'S LEADERS VICE PREMIER LI LANQING LAST MONTH WARNED THE LAWMAKING NATIONAL PEOPLE'S CONGRESS THAT IF PRICES CANNOT BE CONTROLLED POPULAR FEELINGS AND STABILITY WILL BE AFFECTED AND REFORM CANNOT BE CARRIED OUT EVEN THE STATE STATISTICAL BUREAU'S SPOKESMAN YE ZHEN YESTERDAY SAID PRICE RISES WERE TOO HIGH AND HE CAUTIONED THAT SOME PEOPLE ON LOW INCOMES COULDN'T MAKE ENDS MEET THE OFFICIAL BLAMED THE HIGH INFLATION ON POOR IMPLEMENTATION OF PRICE LIBERALIZATIONS AND ON IMPROPER PRICE INCREASES BY BUSINESSES ONE HAS TO BE CONCERNED SAID MIRON MUSHKAT LEHMAN BROTHERS INC'S CHIEF ECONOMIST IN ASIA IT'S A VERY UNCERTAIN SITUATION SOME OF THE UNCERTAINTY HE AND OTHERS SAY STEMS FROM THE FIGURES RELEASED BY CHINA IN THE PAST INFLATION IN MAJOR CITIES HAS DRIVEN NATIONAL PRICE INDEXES THE NUMBERS RELEASED YESTERDAY SUGGEST THAT INFLATION OUTSIDE OF THE CITIES NOW CARRIES THE BULK OF THE NATIONAL INDEX'S WEIGHT THAT MAY BE BECAUSE RURAL AND SUBURBAN PRICE INCREASES HAVE BEEN STEEP ANOTHER POSSIBILITY MR MUSHKAT SAID IS THAT THE EFFECTS OF PRICE CONTROLS IMPOSED ON KEY COMMODITIES AT THE END OF LAST YEAR ARE BEGINNING TO SHOW PARTICULARLY IN THE CITIES WHERE GOVERNMENT CONTROLS ARE STRONGEST MAYBE MAYBE WE'RE BEGINNING TO SEE THE RESULTS OF EFFORTS TO SLOW PRICE INCREASES HE SAID BUT PRICE INCREASES IN SOME CITIES HAVE BEEN REPORTED IN LOCAL NEWSPAPERS TO BE CONSIDERABLY HIGHER THAN THE NATIONAL INDEX FOR MAJOR CITIES AND WAYS OF SKIRTING PRICE CONTROLS PROLIFERATE SHANGHAI FOR INSTANCE RECORDED INFLATION OF 38 IN THE FIRST THREE MONTHS OF THE YEAR IN SOME INSTANCES SHOPKEEPERS TELL CUSTOMERS THEY HAVE NO GOODS AT THE GOVERNMENTMANDATED PRICES BUT THEN OFFER TO COME UP WITH THEM AT A PREMIUM THAT SUGGESTS TO MANY ECONOMISTS THAT INFLATION MAY BE A WORSE PROBLEM THAN THE GOVERNMENT LETS ON INDEED SOME ECONOMISTS WONDER WHETHER THE BASIS FOR COMPILING THE FIGURES MAY HAVE CHANGED IT'S NOT UNKNOWN FOR POLICYMAKERS IN SOME COUNTRIES TO PRESENT FIGURES IN WAYS THAT COULD INFLUENCE EXPECTATIONS ONE HONG KONG ECONOMIST NOTED ANOTHER ECONOMIST GEOFF LEWIS OF SMITH NEW COURT FAR EAST LTD SAID CHINA'S DATA AREN'T PERFECT WHEN HE NOTICED LAST YEAR THAT NOMINAL INCOMES SUDDENLY JUMPED 50 HE TRACKED DOWN THE GOVERNMENT STATISTICIAN RESPONSIBLE FOR THE NUMBERS WHO SAID SHE HAD JUST DECIDED TO ADD ESTIMATED NONWAGE INCOME TO THE NUMBERS CHINA SOUGHT TO UNDERSCORE ITS COMMITMENT TO FIGHTING INFLATION BY TAKING CREDIT FOR CURBING ITS MONEYSUPPLY GROWTH AND REINING IN FIXED INVESTMENT MR YE OF THE STATISTICAL BUREAU SAID THERE HAD BEEN A NET WITHDRAWAL OF CASH FROM CIRCULATION IN THE FIRST QUARTER ALTHOUGH THE COUNTRY'S BASE MEASURE OF MONEY SUPPLY M1 WAS UP 16 AT THE END OF MARCH FROM A YEAR EARLIER STILL THAT WAS DOWN FROM A RATE OF 21 AT THE END OF DECEMBER AND IT CAME AT A TIME WHEN MORE THAN HALF OF ALL STATE FACTORIES LOST MONEY DURING THE FIRST QUARTER MR YE SAID THE GOVERNMENT SHELLED OUT 157 BILLION YUAN 18 BILLION TO KEEP THEM AFLOAT CAPITAL CONSTRUCTION CONTINUED TO RACE GROWING 362 TO 8146 BILLION YUAN BUT IT WAS OFF FROM A YEARONYEAR GROWTH OF 707 IN THE FIRST QUARTER OF 1993 INVESTMENT IN REAL ESTATE WHICH BEIJING HAS TRIED TO CURTAIL SOARED 931 SUCH DATA SUGGEST THAT CHINA'S ECONOMY WILL CONTINUE TO RACE PERHAPS EVEN FASTER THAN THE 115 THAT GOVERNMENT ECONOMISTS NOW EXPECT IT TO GROW THIS YEAR MAYBE CHINA CAN HAVE A CERTAIN AMOUNT OF HIGH INFLATION WITHOUT ACTUALLY SUFFERING SAID MR LEWIS IT'S A NATURAL ACCOMPANIMENT TO DEVELOPMENT 9404190171 940419 NISSAN PRICES TWO MODELS CARSON CALIF NISSAN MOTOR CORP USA THE US SALES ARM OF NISSAN MOTOR CO SAID IT PRICED THE 1995 240SX COUPE BEGINNING AT 16999 AND THE SPORTIER BETTEREQUIPPED 240SX SE COUPE AT 20679 BOTH MODELS GO ON SALE TODAY AT DEALERS NATIONWIDE 9404190170 940419 INTERNATIONAL SOUTH KOREA PLANS SYSTEMS TO FOIL ARTILLERY BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA IS PREPARING TO DEPLOY SOPHISTICATED ARTILLERYTARGETING SYSTEMS IN A MOVE THAT COULD UNDERMINE NORTH KOREA'S KEY TACTICAL ADVANTAGE ON THE HEAVILY FORTIFIED KOREAN PENINSULA ARMS CONTRACTORS AND US DEFENSE OFFICIALS IN SEOUL SAY THE SOUTH KOREAN DEFENSE MINISTRY WILL SOON ANNOUNCE THE INTRODUCTION OF COMPUTERIZED DATAPROCESSING UNITS FOR USE WITH EXISTING ARTILLERY BATTERIES THE USBUILT SYSTEMS CAN REFINE INFORMATION ON ENEMY GUN POSITIONS TRANSMITTED FROM FIREFINDING RADAR AND HELP FRIENDLY ARTILLERY DIRECT A COUNTERATTACK WITH PINPOINT ACCURACY ALTHOUGH SEVERAL TYPES OF THE SYSTEM ARE AVAILABLE US DEFENSE OFFICIALS SAY THE MOST SUITABLE FOR THE SOUTH KOREAN ARMY IS THE SMALLER LESSCOMPLEX LIGHT TACTICAL COMMAND AND CONTROL SYSTEM OR LITACC DEVELOPED BY LITTON INDUSTRIES INC OF BEVERLY HILLS CALIF US FORCES IN KOREA ALREADY DEPLOY A SYSTEM CALLED TACFIRE WITH THEIR ARTILLERY SOUTH KOREA'S DEFENSE MINISTRY DIDN'T ANSWER WRITTEN QUESTIONS ABOUT THE DEPLOYMENT WHICH ACCORDING TO US SOURCES WILL BE DISCUSSED DURING DEFENSE SECRETARY WILLIAM PERRY'S VISIT TO SEOUL THIS WEEK THE TECHNOLOGY BEHIND BOTH TARGETING SYSTEMS WAS USED WITH GREAT SUCCESS IN THE GULF WAR AND COULD GIVE SOUTH KOREA A CRUCIAL DETERRENT AGAINST THE MOST FEARED COMPONENT OF NORTH KOREA'S OFFENSE ITS ESTIMATED 8000 HOWITZERS ARRAYED ALONG THE DEMILITARIZED ZONE ALTHOUGH THE ONEMILLIONMAN NORTH KOREAN ARMY SUFFERS FROM OBSOLETE WEAPONRY AND A LACK OF SPARE PARTS IT MAINTAINS A HUGE ADVANTAGE OVER USSOUTH KOREAN FORCES IN HEAVY GUNS WHICH COULD POUND ALLIED POSITIONS WITH A BARRAGE OF CONVENTIONAL AS WELL AS CHEMICALTIPPED SHELLS DEPLOYMENT OF THE TARGETING SYSTEMS SUGGESTS THE SOUTH KOREAN GOVERNMENT IS SERIOUSLY RECONSIDERING ITS ABILITY TO REPEL AN ALLOUT ASSAULT FROM NORTH KOREA OVER THE PAST TWO DECADES THE DEFENSE MINISTRY HAS ENGINEERED A SWEEPING ARMS BUILDUP GEARED LARGELY AGAINST POTENTIAL REGIONAL THREATS SUCH AS CHINA AND JAPAN BUT HAS ALLOWED ITS PREPAREDNESS AGAINST NORTH KOREA TO LANGUISH TENSIONS ON THE PENINSULA HAVE ESCALATED BECAUSE OF NORTH KOREA'S REFUSAL TO ALLOW INTERNATIONAL INSPECTIONS OF ITS NUCLEAR FACILITIES THE US HAS SUGGESTED IT WOULD PUSH FOR SANCTIONS IF PYONGYANG DOESN'T RELENT WHICH THE STALINIST REGIME HAS SAID WOULD BE AN ACT OF WAR THE DECISION TO DEPLOY PATRIOT ANTIMISSILE BATTERIES AROUND US INSTALLATIONS HAS LED MANY DEFENSE OFFICIALS TO QUESTION WHETHER SOUTH KOREA SHOULD UPGRADE OR REPLACE THE OBSOLETE AIRDEFENSE SYSTEM CURRENTLY GUARDING SEOUL SOUTH KOREA'S FORCE OF COBRA ATTACK HELICOPTERS LACK THE CAPABILITY TO FLY AT NIGHT OR IN POOR WEATHER WHEN NORTH KOREA WOULD MOST LIKELY ATTACK US DEFENSE OFFICIALS SAY ALTHOUGH US DEFENSE OFFICIALS HAVE BEEN URGING SEOUL TO INTRODUCE EITHER TACFIRE OR LITACC FOR SEVERAL YEARS THE DEFENSE MINISTRY HAS RESISTED IN ORDER TO GIVE THE LUCKYGOLDSTAR GROUP A LOCAL CONGLOMERATE TIME TO PRODUCE ITS OWN VERSION DEFENSE MINISTRY OFFICIALS HAVE RECENTLY TOLD THEIR US COUNTERPARTS THAT THE SOUTH KOREAN CONGLOMERATE HAS TESTED A PROTOTYPE SUCCESSFULLY BUT US OFFICIALS SAY THEY ARE DOUBTFUL THAT IT CAN PERFORM ADEQUATELY UNDER BATTLE CONDITIONS AND THEY ARE EVEN LESS CONFIDENT IT WILL BE COMPATIBLE WITH THE US HARDWARE EMPLOYED BY THE SOUTH KOREAN ARMY