SHANGHAI CHINA'S FOREIGNEXCHANGE RESERVES GOT A BIG BOOST THIS YEAR FROM A SERIES OF FINANCIAL REFORMS BUT REMAINED WELL SHY OF THEIR LOFTY LEVELS OF THE EARLY 1990S ZHU XIAOHUA THE TOP FOREIGNEXCHANGE OFFICIAL AT THE PEOPLE'S BANK OF CHINA THE NATION'S CENTRAL BANK SAID THE UNIFICATION OF CHINA'S DUAL CURRENCY SYSTEM AND THE IMPLEMENTATION OF A NEW INTERBANK CURRENCYEXCHANGE MARKET HAD LED TO A RECORD SURGE IN FOREIGN CURRENCY RESERVES BUT HE DIDN'T CITE A FIGURE CHINESE OFFICIALS SAID EARLIER THAT THE RESERVES HAD RISEN TO CLOSE TO 28 BILLION UP ABOUT 28 FROM THE END OF 1993 CHINA HAD 40 BILLION IN RESERVES AT THE END OF 1991 BUT THE HOARD SHRANK AS THE COUNTRY RELAXED IMPORT CONTROLS AND EXPORT GROWTH SLOWED AN INCREASE IN THE NATION'S RESERVES MAKES IT EASIER FOR BEIJING TO MAINTAIN THE VALUE OF THE CHINESE YUAN WHICH CURRENTLY TRADES AT ABOUT 87 TO THE DOLLAR THE GOVERNMENT CONSIDERS A STRONG YUAN CRUCIAL TO THE SUCCESS OF ITS FINANCIALREFORM PROGRAM MR ZHU SPEAKING AT THE FORMAL OPENING OF CHINA'S NEW INTERBANK CURRENCYEXCHANGE CENTER IN SHANGHAI YESTERDAY CITED STRONG GROWTH IN EXPORTS AND A RISE IN REVENUE FROM TOURISM AS FACTORS IN THE SURGE IN FOREIGN EXCHANGE EXPORTS IN THE FIRST QUARTER OF 1994 GREW 19 FROM A YEAR EARLIER TO 191 BILLION WHILE IMPORTS ROSE 18 TO 204 BILLION IT WAS THE FIRST TIME IN MORE THAN A YEAR THAT EXPORT GROWTH OUTPACED IMPORT GROWTH 9404190168 940418 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 9404190167 940419 MARKETING & MEDIA LOEWS THEATRES TO CHANGE ITS NAME TO SONY THEATRES NEW YORK THE NAME OF THE OLDEST THEATER CHAIN IN THE COUNTRY IS ABOUT TO DISAPPEAR LOEWS THEATRES WHICH WAS ACQUIRED BY SONY CORP AS PART OF ITS PURCHASE OF COLUMBIA PICTURES ENTERTAINMENT IN 1989 SAID YESTERDAY IT WILL CHANGE ITS NAME TO SONY THEATRES THE NAME CHANGE COMES IN THE MIDST OF AN AGGRESSIVE EXPANSION PLAN AT LOEWS THE NATION'S SEVENTH LARGEST MOVIE THEATER CHAIN IT PLANS TO BUILD AT LEAST SIX NEW COMPLEXES THIS YEAR INCLUDING SONY LINCOLN SQUARE THEATRE IN MANHATTAN A NINESCREEN COMPLEX THAT WILL BE THE NATION'S FIRST MULTIPLEX TO HOUSE A LARGEFORMAT IMAX THEATER LOEWS EXECUTIVES SAID THE LOEWS NAME WON'T BE ERASED ENTIRELY ONE OF THE NINE AUDITORIUMS AT SONY LINCOLN SQUARE WILL BE NAMED LOEWS THEATER LOEWS THEATRES WHICH OPERATES ABOUT 1000 SCREENS IN 15 STATES WAS FOUNDED IN 1904 LOEWS CORP SOLD THE CHAIN TO A MANAGEMENT GROUP IN 1985 THAT GROUP LATER SOLD IT TO TRISTAR PICTURES PART OF COLUMBIA PICTURES ENTERTAINMENT WHICH HAS SINCE BEEN RENAMED SONY PICTURES ENTERTAINMENT 9404190166 940419 TECHNOLOGY IBM MOTOROLA SAY DEVELOPMENT OF CHIP HAS BEEN COMPLETED ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP AND MOTOROLA INC OF SCHAUMBURG ILL SAID THEY HAVE COMPLETED DEVELOPMENT OF THE POWERPC 604 MICROPROCESSOR THE MOST POWERFUL YET IN A FAMILY OF NEW CHIPS COMPETING AGAINST RIVAL CHIPMAKER INTEL CORP THE FIRSTGENERATION POWERPC 601 CHIP MADE ITS DEBUT ON PERSONAL COMPUTERS LAST MONTH WHEN APPLE COMPUTER INC LAUNCHED ITS NEW LINE OF POWER MACINTOSHES THOSE MACINTOSHES CARRY ROUGHLY THE SAME AMOUNT OF POWER AS COMPUTERS BASED ON INTEL'S POWERFUL NEW PENTIUM CHIPS WITH ABOUT TWICE THE POWER OF THE 601 THE POWERPC 604 WILL POSE AN EVEN GREATER COMPETITIVE THREAT TO INTEL IBM AND MOTOROLA WHICH DEVELOPED POWERPC WITH APPLE SAID THEY EXPECTED TO BEGIN VOLUME PRODUCTION OF THE POWERPC 604 IN THE FOURTH QUARTER IBM HAS SAID IT WOULD INTRODUCE ITS POWERPCBASED PERSONAL COMPUTERS SOMETIME IN THE SECOND HALF 9404190165 940419 WALL STREET'S COMPLIANCE PROBLEM IS SPOTLIGHTED BY KIDDER'S CASE BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AS PART OF ITS 1987 SETTLEMENT OF CIVIL INSIDERTRADING CHARGES KIDDER PEABODY GROUP INC IMPLEMENTED A COMPLIANCE SYSTEM DESIGNED TO HELP THE FIRM DETECT THE MOST COMPLEX TRADING CRIMES BUT KIDDER'S ALLEGATIONS THIS WEEK THAT A TOP TRADER EXECUTED A SERIES OF PHANTOM TRADES THAT CAUSED IT TO POST 350 MILLION IN NONEXISTENT PROFITS RAISES QUESTIONS ABOUT WHETHER EVEN THE MOST SOPHISTICATED COMPLIANCE PROGRAM CAN REALLY WORK AT A WALL STREET SECURITIES FIRM THERE ISN'T A COMPLIANCE SYSTEM DEVISED THAT CAN'T BE BEAT SAID ROBERT MORVILLO A NEW YORK ATTORNEY WHO HAS REPRESENTED BOTH TRADERS AND SECURITIES FIRMS KIDDER A GENERAL ELECTRIC CO UNIT SAID JOSEPH JETT A 36YEAROLD MANAGING DIRECTOR WHO HAS RUN KIDDER'S GOVERNMENTBOND TRADING DESK SINCE 1991 HAD BEAT ITS SYSTEM FOR ABOUT A YEAR PEOPLE CLOSE TO THE FIRM SAID MR JETT EXECUTED THOUSANDS OF ALLEGEDLY PHONY TRADES BEFORE BEING CAUGHT LATE LAST WEEK YESTERDAY MR JETT DECLINED TO COMMENT ON KIDDER'S ALLEGATIONS UNTIL HE HIRED A LAWYER THE KIDDER INCIDENT IS JUST THE LATEST IN A SERIES OF WALL STREET TRADING DEBACLES OTHER FIRMS INCLUDING SALOMON BROTHERS INC AND MERRILL LYNCH & CO HAVE HAD THEIR OWN WELLPUBLICIZED COMPLIANCE PROBLEMS IN RECENT YEARS SALOMON PAID 290 MILLION IN FINES IN 1992 TO SETTLE SEC ALLEGATIONS THAT IT VIOLATED RULES IN NINE TREASURYSECURITIES AUCTIONS PAUL MOZER THE FORMER HEAD OF SALOMON'S GOVERNMENTSECURITIES TRADING DESK WAS SENTENCED TO FOUR MONTHS IN PRISON FOR HIS ROLE IN THE 1991 TREASURYAUCTION BIDDING SCANDAL AND LAST YEAR MERRILL LYNCH SUSPENDED THREE OF ITS TOP EXECUTIVES IN ITS MUNICIPALBOND TRADING DEPARTMENT AFTER IT FOUND ALLEGED TRADING IMPROPRIETIES THE SUSPENSIONS TOUCHED OFF A HUGE GOVERNMENT INVESTIGATION INTO MUNICIPALBOND ACTIVITIES IN NEW JERSEY AND ELSEWHERE KIDDER EXECUTIVES SAID MR JETT'S ALLEGED TRADING SCHEME INVOLVED GOVERNMENT STRIPS SECURITIES THAT ARE CREATED BY PEELING AWAY AND REPACKAGING THE INTEREST PAYMENTS OF 30YEAR GOVERNMENT BONDS MR JETT ALLEGEDLY ENTERED INTO FORWARD CONTRACTS THAT INVOLVED THE EXCHANGE AT A LATER DATE OF STRIPS FOR BONDS BUT INSTEAD OF SETTLING THE CONTRACTS WHEN THEY CAME DUE HE ALLEGEDLY CONTINUED TO ROLL THEM OVER TAKING FICTITIOUS PROFITS KIDDER HAS SAID IT BELIEVES THAT MR JETT WAS TRYING TO IMPROVE THE APPEARANCE OF HIS PERSONAL TRADING PROFITS TO BOOST HIS COMPENSATION LAST YEAR HE MADE 9 MILLION YESTERDAY A KIDDER OFFICIAL SAID THE FIRM HAS COMPLIANCE SUPERVISORS FOR EVERY ONE OF KIDDER'S DEPARTMENTS AND BUSINESS UNITS TRADING POSITIONS AND TRANSACTIONS ARE ANALYZED BY COMPLIANCE OFFICERS AND AUDITORS FOR DIFFERENT TYPES OF RISKS INCLUDING LIQUIDITY AND INTERESTRATE MOVES BUT THE OFFICIAL SAID THAT BECAUSE MR JETT'S TRANSACTIONS WERE RISKFREE THEY WENT UNDETECTED BY THE FIRM'S COMPLIANCE OFFICERS FOR A LONG TIME ATTORNEYS IN CHARGE OF COMPLIANCE AT OTHER WALL STREET FIRMS SYMPATHIZE WITH KIDDER'S PLIGHT IN NOT CATCHING MR JETT SOONER THERE'S A BASIC ASSUMPTION THAT MOST SENIOR PEOPLE ARE HONEST SAID THOMAS RUSSO A MANAGING DIRECTOR OF LEHMAN BROTHERS INC WHO IS IN CHARGE OF THAT FIRM'S COMPLIANCE AND AUDIT DEPARTMENTS UNLESS YOU HAVE REASON TO BELIEVE THAT TRADES ARE BOGUS THE CHANCES OF CATCHING FRAUDULENT TRADES IS OFTEN RANDOM BECAUSE SECURITIES FIRMS EXECUTE THOUSANDS OF TRADES DAILY THE COMPANIES OFTEN CHECK THEM BASED ON SMALL SAMPLINGS AND SOME ATTORNEYS SAID KIDDER MIGHT HAVE HAD LESS REASON TO SUSPECT MR JETT THAN OTHERS BECAUSE OF HIS STATURE WITHIN THE FIRM TRADERS HAVE ENORMOUS DISCRETION IN WHAT THEY BUY AND SELL AND THE MORE SENIOR THEY ARE THE MORE DISCRETION THEY HAVE SAID ALAN COHEN A NEW YORK DEFENSE LAWYER WHO IS A FORMER HEAD OF THE SECURITIES FRAUD UNIT OF THE MANHATTAN US ATTORNEY'S OFFICE BUT TRADING IN SUCH SOPHISTICATED SECURITIES AS GOVERNMENT STRIPS AND DERIVATIVES PRESENTS A WHOLE NEW SET OF PROBLEMS FOR WALL STREET COMPLIANCE DEPARTMENTS THAT WON'T EASILY BE RESOLVED SECURITIES LAWYERS SAY WALL STREET'S BIGGEST HEADACHE IS THAT FINANCIAL INSTRUMENTS ARE EVOLVING SO QUICKLY THAT FEW COMPLIANCE SUPERVISORS AND AUDITORS UNDERSTAND HOW THESE NEW VEHICLES ARE TRADED AND ARE THEREFORE UNEQUIPPED TO DEAL WITH THEM THE ATTORNEYS SAY THAT TRADERS CAN OFTEN OUTSMART LAWYERS AND AUDITORS THE KINDS OF THINGS THESE GUYS ARE TRADING ARE ONES THAT VERY FEW PEOPLE OTHER THAN THEM UNDERSTAND SAID ALAN BROMBERG A PROFESSOR OF SECURITIES LAW AT SOUTHERN METHODIST UNIVERSITY THAT MAKES IT TOUGH TO POLICE WHAT'S MORE SAID MR MORVILLO TRADES ARE OFTEN DONE ON THE BASIS OF ORAL AGREEMENTS THAT ARE ONLY LATER COMMITTED TO WRITING WHICH MAKES THEM EVEN HARDER TO MONITOR TRADERS SAY THAT KIDDER'S BOND GROUP OPERATES AS AN INDEPENDENT FIEFDOM SOME SECURITIES LAWYERS SAID THAT IF MR JETT HAD LESS LATITUDE THE ALLEGED SCHEME MIGHT NOT HAVE WORKED HOW KIDDER PEABODY COULD BE BILKED LIKE THIS IS SHOCKING SAID HARVEY GOLDSCHMID A PROFESSOR AT COLUMBIA UNIVERSITY'S LAW SCHOOL MISSING 350 MILLION OF FALSE GAIN MAY INDICATE THAT INTERNAL AND EXTERNAL AUDITING PROCEDURES AREN'T KEEPING UP WITH THE COMPLEXITY OF WHAT'S GOING ON KIDDER HAS SAID THAT IT BELIEVES MR JETT'S ALLEGED SCHEME WAS AN ISOLATED INCIDENT THAT HAPPENED DESPITE EFFORTS TO MAKE THE FIRM'S COMPLIANCE SYSTEM STATEOFTHEART MR JETT IS BEING INVESTIGATED BY THE NEW YORK AND WASHINGTON OFFICES OF THE SECURITIES AND EXCHANGE COMMISSION AND BY THE MANHATTAN US ATTORNEY'S OFFICE ACCORDING TO INDIVIDUALS WITH KNOWLEDGE OF THE CASE EVEN THOUGH KIDDER SAYS IT WAS A VICTIM IT COULD FACE POSSIBLE SEC CHARGES OF FAILING TO SUPERVISE MR JETT 9404190164 940419 WHO'S NEWS DATA GENERAL CORP DATA GENERAL CORP WESTBORO MASS WILLIAM L WILSON 50 YEARS OLD WAS NAMED TO THE NEW POSITION OF CORPORATE VICE PRESIDENT IN CHARGE OF THE PERSONAL COMPUTER AND CLARIION STORAGE SYSTEMS OPERATIONS OF THIS COMPUTER MAKER MR WILSON PREVIOUSLY WORKED IN MARKETING AT INTERNATIONAL BUSINESS MACHINES CORP 9404190163 940419 TECHNOLOGY NEOPROBE MIGHT SEEK INVESTORS TO PARTICIPATE IN SURGICAL PRODUCTS DUBLIN OHIO NEOPROBE CORP SAID IT MIGHT SEEK INVESTORS FOR ITS RIGS SURGICAL PRODUCTS AND TECHNOLOGY WHICH ARE USED IN DETECTING AND TREATING CANCER AND ANNOUNCED IT WILL SOON POSSESS THE MANUFACTURING CAPABILITY TO SUPPLY RIGS PRODUCTS ONCE FINAL MARKETING APPROVALS ARE GAINED THE COMPANY SAID IT IS EXPLORING OFFBALANCESHEET TRANSACTIONS TO ALLOW INVESTORS TO PARTICIPATE THOUGH NEOPROBE WOULD RETAIN MAJORITY INTEREST AND MANAGERIAL CONTROL ONE ALTERNATIVE THE COMPANY SAID WOULD BE A PARTIAL SPINOFF OF SOME ASSETS INTO A PUBLIC ENTITY IN CONJUNCTION WITH A DEBT FINANCING NEOPROBE SAID THAT CASH RECEIVED IN A TRANSACTION COULD BE USED TO COMPLETE CLINICAL TRIALS AND CONCLUDE STRATEGIC PARTNERSHIP NEGOTIATIONS AS PART OF YESTERDAY'S ANNOUNCEMENT THE COMPANY SAID IT BOUGHT THE REMAINING STAKE IN MONOCARB AB A MAKER OF ANTIBODIES AND GROUPING REAGENTS BASED IN LUND SWEDEN IN DECEMBER NEOPROBE SAID IT HAD BOUGHT A 624 STAKE IN MONOCARB ONE OF THE FACILITIES NEEDED TO SUPPLY THE RIGS PRODUCTS THE COMPANY ALSO SAID YESTERDAY THAT IT AND NEOPROBEISRAEL A 95OWNED ISRAELI SUBSIDIARY PLAN TO SIGN FINAL AGREEMENTS ON THURSDAY WITH ISRAEL'S ROTEM INDUSTRIES TO ESTABLISH A RADIOLABELING FACILITY NEAR BEERSHEBA NEOPROBE SAID IT EXPECTS FINAL APPROVAL TO MARKET RIGS PRODUCTS IN EUROPE IN 1995 AND IN THE US IN 1996 9404190162 940419 WHO'S NEWS HEWLETTPACKARD CO HEWLETTPACKARD CO PALO ALTO CALIF RICHARD C WATTS 46 YEARS OLD WAS NAMED GENERAL MANAGER OF THE COMPUTER COMPANY'S FASTGROWING PERSONALCOMPUTING BUSINESS MR WATTS AN HP VICE PRESIDENT SUCCEEDS ROBERT J FRANKENBERG 46 WHO LEFT HP THIS MONTH TO BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NOVELL INC A PROVO UTAH SOFTWARE CONCERN 9404190161 940419 INTERNATIONAL ITALY'S MONTEDISON SUES PRICE WATERHOUSE SEEKING 610 MILLION MILAN MONTEDISON SPA SAID IT FILED SUIT AGAINST ITS FORMER AUDITOR PRICE WATERHOUSE ITALY SEEKING DAMAGES OF MORE THAN ONE TRILLION LIRE 610 MILLION THE COMPANY ALSO SAID IT HAD ASKED THE MILAN COURT TO FORCE PRICE WATERHOUSE TO PAY AN INITIAL 300 BILLION LIRE IMMEDIATELY AS AN ADVANCE ON ANY FINAL RULING PRICE WATERHOUSE SAID IT WOULD VIGOROUSLY DEFEND ITSELF AGAINST THE LAWSUIT THE CLAIM IS BASED ON THE MISTAKEN ASSUMPTION THAT IT IS THE AUDITORS NOT THE PREVIOUS MANAGEMENT WHO WERE RESPONSIBLE FOR THE DELIBERATE AND SYSTEMATIC FRAUD NOW KNOWN TO HAVE BEEN CONDUCTED AT THE HIGHEST LEVELS OF MANAGEMENT IT SAID MONTEDISON SHAREHOLDERS APPROVED THE LAWSUIT IN NOVEMBER BUT THE CREDITORAPPOINTED NEW MANAGEMENT WAITED TO CALCULATE THE EXTENT OF THE DAMAGES BEFORE FILING THE COMPLAINT A SPOKESMAN SAID UNTIL NOW MONTEDISON HAD SOUGHT COMPENSATION FOR ALLEGED IRREGULARITIES BETWEEN 1988 AND 1992 BUT THE LAWSUIT EXTENDS THE PERIOD OF ALLEGED MISMANAGEMENT AT THE COMPANY TO 1983 LONG BEFORE THE LATE RAUL GARDINI TOOK OVER AS CHAIRMAN MR GARDINI COMMITTED SUICIDE LAST SUMMER JUST AS MILAN MAGISTRATES WERE ABOUT TO ARREST HIM FOR ALLEGED FRAUD IN ITS LAWSUIT MONTEDISON SAID THAT PRICE WATERHOUSE WAS GUILTY OF SERIOUS NEGLIGENCE AND VIOLATED INTERNATIONAL ACCOUNTING PRINCIPLES BY APPROVING BALANCE SHEETS THAT CONTAINED IRREGULAR OFFSHORE CONSULTING FEES 9404190160 940419 HEARD ON THE STREET MODEM MAKERS IN STIFF COMPETITION ON PRICES SPARK DIFFERENT ASSESSMENTS AMONG ANALYSTS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL MODEMS THE DEVICES THAT ALLOW COMPUTERS TO SEND OR RECEIVE DATA BY PHONE LINES ARE GETTING FASTER AND FASTER CHEAPER AND CHEAPER THIS MAKES COMPUTER BUFFS SMILE BUT WHAT'S SAUCE FOR THE GEEKS ISN'T NECESSARILY GOOD FOR THE MODEM MANUFACTURERS STIFF PRICE COMPETITION SOME CALL IT A PRICE WAR IS CRIMPING PROFIT MARGINS MOST VULNERABLE A FEW CRITICS CHARGE IS INDUSTRY LEADER US ROBOTICS INVESTORS WHO BET ON SELECTED STOCKS TO GO DOWN HAVE MADE A LITTLE MONEY BETTING AGAINST US ROBOTICS IN RECENT WEEKS AND THESE SOCALLED SHORT SELLERS HOPE TO MAKE MORE ALSO UNDER PRESSURE ARE OTHER MODEM STOCKS INCLUDING ZOOM TELEPHONICS BOCA RESEARCH MEGAHERTZ AND DATA RACE BUT THOSE STOCKS ARE MORE MODESTLY PRICED SO THEY MAY HAVE LESS FAR TO FALL IF PRICE CUTTING WORSENS HERBERT TINGER ANALYST WITH PAULI & CO IN ST LOUIS SAYS US ROBOTICS USUALLY BEATS COMPETITORS TO MARKET WITH NEW PRODUCTS BUT HE FINDS THE STOCK A LITTLE PRICEY AT 21 TIMES THE PAST FOUR QUARTERS' EARNINGS HE PREFERS ZOOM QUOTED AT 10 1/4 YESTERDAY ON THE NASDAQ STOCK MARKET ZOOM IS ATTRACTIVELY PRICED AT 16 TIMES EARNINGS HE SAYS THE BOSTON COMPANY REALLY SUFFERED IN THE THIRD AND FOURTH QUARTERS LAST YEAR PARTLY BECAUSE OF HASSLES WITH A NEW PARTS SUPPLIER MR TINGER IS HOPING THAT THEY'LL AT LEAST BE ON TRACK IN THE FIRST QUARTER AND WILL ACCELERATE THROUGHOUT THE YEAR THOUGH NOT A TECHNOLOGICAL INNOVATOR LIKE US ROBOTICS ZOOM HAS NEW MANUFACTURING FACILITIES EXCELLENT DISTRIBUTION CHANNELS A BALANCE SHEET FREE OF LONGTERM DEBT AND A STRONG PRESENCE IN THE HOT AREA OF CREDITCARDSIZED MODEMS FOR LAPTOP COMPUTERS MR TINGER SAYS HE ALSO LIKES FASTGROWING SALT LAKE CITYBASED MEGAHERTZ WHICH HE SAYS LIKEWISE IS DOING WELL IN THE LAPTOP ARENA CHARLES BIDERMAN WRITER OF MARKET TRIM TABS A SANTA ROSA CALIF INVESTMENT NEWSLETTER BELIEVES THAT ZOOM HAS LATELY BEEN GAINING MARKET SHARE AGAINST US ROBOTICS ZOOM AND BOCA WERE HURT DURING THE SUMMER BY ROBOTICS' PRICING STRATEGY AND NOW THEY'RE RETURNING THE FAVOR HE SAYS MODEMS MR BIDERMAN SAYS ARE BASICALLY COMMODITY PRODUCTS WHERE PRICES ARE DROPPED 50 A YEAR UNLESS YOU'RE A REAL TECHNONERD A MODEM'S A MODEM MR BIDERMAN WOULDN'T BUY ANY MODEM STOCK AT THE MOMENT AND HE RECOMMENDS A SHORT SALE OF US ROBOTICS THE SKOKIE ILL COMPANY HAS THE PRICIEST STOCK IN THE LOT HE SAYS IT FACES A TOUGH FIGHT FROM ZOOM AND OTHERS HAS HAD INVENTORIES GROWING FASTER THAN SALES LATELY AND HAS SEEN A BUNCH OF INSIDERS SELLING STOCK FIVE US ROBOTICS OFFICERS AND DIRECTORS HAVE SOLD SHARES SINCE NOVEMBER ACCORDING TO FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION CASEY G COWELL CHIEF EXECUTIVE OFFICER SOLD 125000 SHARES JONATHAN N ZAKIN EXECUTIVE VICE PRESIDENT AND JOHN MCCARTNEY SECRETARY EACH PARTED WITH 62500 SHARES JAMES C TYREE A DIRECTOR SOLD 235000 SHARES ROSS W MANIRE CHIEF FINANCIAL OFFICER FOR US ROBOTICS SAYS HIS COMPANY'S STOCK ISN'T PRICEY CONSIDERING THAT SALES IN THE DECEMBER QUARTER WERE MORE THAN DOUBLE THOSE OF A YEAR EARLIER AND THAT WE'RE NOT JUST A MODEM COMPANY US ROBOTICS IS ALSO INVOLVED IN COMPUTER NETWORKING AMONG OTHER THINGS THE INSIDER SELLING WAS JUST TO DIVERSIFY A LITTLE BIT MR MANIRE SAYS MR COWELL STILL HOLDS SOME 700000 SHARES DIRECTLY AND MORE THAN 600000 IN OPTION FORM HE SAYS MESSRS MCCARTNEY AND ZAKIN STILL HOLD SUBSTANTIAL POSITIONS IN THE FORM OF VESTED AND UNVESTED OPTIONS AS FOR PRICE WARS MR MANIRE SAYS THE COMPANY IS USED TO THEM AND AS A LOWCOST PRODUCER CAN WEATHER THEM HE DOUBTS THAT US ROBOTICS HAS LOST MARKET SHARE ALTHOUGH HE SAYS SHARE FIGURES ARE HARD TO GUESS INVENTORIES SHOULD BEGIN TO SHRINK SOON AS A PERCENTAGE OF SALES HE SAYS STEVEN D LEVY ANALYST AT HAMBRECHT & QUIST SAYS US ROBOTICS IS MY TOPRATED STOCK HE PRAISES ITS PROWESS IN BOTH MANUFACTURING AND DISTRIBUTION AND ESTIMATES IT WILL EARN 191 A SHARE THIS FISCAL YEAR AND 255 NEXT FISCAL YEAR JIM OBERWEIS MANAGER OF OBERWEIS EMERGING GROWTH FUND OWNS MEGAHERTZ BUT SOLD HIS STAKE IN ZOOM ON LAST YEAR'S DISAPPOINTMENT HE ALSO DEFENDS US ROBOTICS CITING ITS CONSISTENT AND VERY RAPID GROWTH BUT ONE NEW YORK MONEY MANAGER WHO HAS SOLD SHORT US ROBOTICS STOCK SAYS THE SHARES ARE ON THIN ICE IN HIS VIEW THE POTENTIAL FOR A NEGATIVE EARNINGS SURPRISE IS HIGH ROBOTICS REMAINS THE PRICIEST STOCK IN THE GROUP 9404190159 940419 SMALL STOCK FOCUS PRICES FALL BROADLY ON FED RATE MOVE NASDAQ INDEX HITS LOWEST LEVEL OF 94 BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK ANOTHER MOVE BY THE FEDERAL RESERVE TO TIGHTEN MONETARY POLICY KNOCKED MORE OF THE STUFFING OUT OF SMALLCOMPANY STOCKS BONDS TUMBLED ON NEWS THAT THE FED HAD SIGNALED ITS THIRD MOVE THIS YEAR TO BOOST SHORTTERM INTEREST RATES THE 30YEAR BOND FELL MORE THAN 1 3/8 POINTS DRIVING ITS YIELD UP TO 741 THE HIGHEST SINCE JANUARY 1993 THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION STOCKS FELL 175 OR 070 TO END AT 24840 ON NASDAQ THE COMPOSITE INDEX FINISHED AT ITS LOWEST LEVEL THIS YEAR SLIDING 752 OR 103 TO 72045 BOTH INDEXES STARTED THE DAY SLIGHTLY HIGHER BEFORE THE FED'S ANNOUNCEMENT BUT SMALLSTOCK INDEXES FELL LESS THAN THOSE FOR BIGGER COMPANIES THE DOW JONES INDUSTRIAL AVERAGE SKIDDED 4105 OR 112 TO 362042 TRADERS SAID SMALLCAP ISSUES WERE SO BATTERED OVER THE PAST FEW WEEKS THAT THEY WERE BOUND TO PERFORM BETTER THAN THEIR LARGER BRETHREN NASDAQ DECLINERS BEAT ADVANCERS 1935 TO 1199 ON SLEEPY NASDAQ NATIONAL MARKET VOLUME OF 219869900 SHARES AND TOTAL VOLUME OF 246575000 ON FRIDAY NATIONAL MARKET TURNOVER WAS 248172200 SHARES AND OVERALL VOLUME WAS 278915000 ALTHOUGH INVESTORS FOR THE MOST PART HAVE BEEN GLOSSING OVER EARNINGS REPORTS AND CONCENTRATING ON INTEREST RATES PATRICK DAVICS MANAGER OF NASDAQ TRADING AT SALOMON BROTHERS INC SAID TECHNOLOGY ISSUES WERE WEAK AHEAD OF PROFIT REPORTS FOR INTEL CORP AND MICROSOFT CORP AFTER THE MARKET CLOSE INTEL POSTED FIRSTQUARTER NET INCOME OF 140 A SHARE UP FROM 124 A YEAR EARLIER ITS EARNINGS CAME IN AT THE HIGH END OF ANALYSTS' EXPECTATIONS WHICH RANGED FROM 135 TO 140 A SHARE MICROSOFT REPORTED FISCAL THIRDQUARTER EARNINGS OF 84 CENTS A SHARE AFTER A 26CENTASHARE CHARGE UP FROM 80 CENTS A YEAR EARLIER ELSEWHERE DIODES A WESTLAKE VILLAGE CALIF SEMICONDUCTOR FIRM DROPPED 5/8 TO 7 5/8 ON THE AMERICAN STOCK EXCHANGE POWERSOFT BURLINGTON MASS SLIPPED 3 5/8 TO 53 1/4 DESPITE IMPROVED FIRSTQUARTER EARNINGS AND CATALYST SEMICONDUCTOR SANTA CLARA CALIF FELL 1/4 TO 5 THE DAY'S BIG DECLINER WAS PLATINUM SOFTWARE WHICH PLUMMETED 6 7/16 OR 644 TO 3 9/16 ON NEWS THAT ITS CHIEF EXECUTIVE OFFICER ITS CHIEF FINANCIAL OFFICER AND TWO EXECUTIVE VICE PRESIDENTS HAVE RESIGNED THE IRVINE CALIF COMPANY SAID IT EXPECTS TO REPORT FISCAL THIRDQUARTER REVENUE BELOW ANALYSTS' EXPECTATIONS AS WELL AS A SUBSTANTIAL LOSS FROM OPERATIONS PLATINUM ALSO SAID IT WILL TAKE A ONETIME 7 MILLION TO 10 MILLION RESTRUCTURING CHARGE AND WILL RESTATE QUARTERLY FINANCIAL RESULTS FOR PRECEDING PERIODS XYLOGICS BURLINGTON MASS GAINED 1 1/2 TO 21 1/4 HANCOCK INSTITUTIONAL EQUITY SERVICES PUT AN INITIAL BUY RATING ON THE COMPANY SAYING THAT WHILE ITS TOTAL 1993 REVENUE INCREASED 26 YEAROVERYEAR NETWORKING PRODUCTS REVENUE ROSE 58 IN MERGER NEWS FIBREBOARD A WALNUT CREEK CALIF LUMBER AND PLYWOOD MAKER FELL 1 5/8 TO 36 3/8 ON THE AMEX LATE FRIDAY THE COMPANY SAID ITS BOARD REJECTED A 45ASHARE MERGER OFFER SUBURBAN BANCORP PALATINE ILL ZOOMED 16 1/2 TO 66 SUBURBAN PLANS TO MERGE WITH BANK OF MONTREAL'S HARRIS BANKCORP UNIT IN A 246 MILLION DEAL METROPOLITAN BANCORP GAINED 1 1/4 TO 14 1/4 THE SEATTLE COMPANY SAID IT WILL ACQUIRE PHOENIX MORTGAGE & INVESTMENT INC A MORTGAGE BANKING FIRM SCIENTIFIC TECHNOLOGIES CLIMBED 2 OR 308 TO 8 1/2 OFFICIALS OF THE HAYWARD CALIF ELECTRICAL COMPANY CITED THE RECENT MAILING OF AN INCREASED DIVIDEND AS A POSSIBLE REASON CLASS A SHARES OF FIGGIE INTERNATIONAL DROPPED 1 3/8 TO 8 AFTER FRIDAY'S CLOSE THE WILLOUGHBY OHIO COMPANY SAID ITS OUTSIDE AUDITOR ISSUED A GOINGCONCERN QUALIFICATION ON ITS 1993 FORM 10K ANNUAL REPORT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION THE AUDITOR SAID FIGGIE'S FINANCIAL CONDITIONS RAISE SUBSTANTIAL DOUBT ABOUT THE COMPANY'S ABILITY TO CONTINUE AS A GOING CONCERN TIMBERLAND FELL 2 1/8 TO 36 3/8 ON THE NEW YORK STOCK EXCHANGE AFTER FRIDAY'S CLOSE THE HAMPTON NH FOOTWEAR AND APPAREL DESIGNER SAID IT WILL PHASE OUT ABOUT 150 POSITIONS AT ITS MANUFACTURING PLANTS IN MOUNTAIN CITY TENN AND BOONE NC MEXICAN STOCKS FELL ON CONCERN THAT FIRSTQUARTER CORPORATE RESULTS WILL BE WORSE THAN EXPECTED HURTING AMERICAN DEPOSITARY RECEIPTS OF MEXICAN COMPANIES GRUPO RADIO CENTRO LOST 1 1/2 TO 19 1/8 ALSO CLOSEDEND FUNDS SUCH AS EMERGING MEXICO FUND DIPPED 5/8 TO 16 1/2 AND MEXICO EQUITY FUND GAVE UP 5/8 TO 18 7/8 EARNINGS WERE EXPECTED TO BE ATTRACTING MORE ATTENTION BUT IT'S TOUGH TO ARGUE WITH THE ANXIETY LEVELS THAT HAVE BEEN CREATED BY HIGHER INTEREST RATES AND THE FACT THAT THE FED HAS NOW MADE ITS THIRD MOVE AGAINST INFLATION SAID ALAN ACKERMAN EXECUTIVE VICE PRESIDENT AT REICH & CO PEOPLE ARE FOCUSING ON MOOD MONEY AND MOMENTUM MR ACKERMAN ADDED THE FED IS CALLING THE TUNE FOR WHAT IS NOW A BLACK AND BLUE BOND MARKET AND IT APPEARS THERE'S MORE DAMAGE AHEAD 9404190158 940419 INTERNATIONAL BAA AIRPORT PASSENGERS LONDON BRITISH AIRPORTS GROUP BAA PLC SAID ITS SEVEN AIRPORTS HANDLED 67 MILLION PASSENGERS IN MARCH UP 10 FROM A YEAR EARLIER FOR THE FINANCIAL YEAR ENDED MARCH 31 PASSENGER FIGURES INCREASED 56 TO A NEW HIGH OF 82 MILLION IT ADDED THAT MARCH FIGURES WERE BOOSTED BY AN EARLY EASTER THIS YEAR 9404190157 940419 WHO'S NEWS GREEN TREE FINANCIAL CORP GREEN TREE FINANCIAL CORP ST PAUL MINN ROBERT D POTTS 51 YEARS OLD FORMERLY EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED PRESIDENT OF THIS DIVERSIFIED FINANCIAL SERVICES CONCERN SUCCEEDING LAWRENCE M COSS 55 WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR POTTS CONTINUES AS CHIEF OPERATING OFFICER 9404190156 940419 AUTOINFO BUYS EQUIFAX UNIT FAIR LAWN NJ AUTOINFO INC SAID IT ACQUIRED THE AUTOMOBILE PHOTOINSPECTION BUSINESS OF EQUIFAX SERVICES INC A UNIT OF EQUIFAX INC ATLANTA TERMS WEREN'T DISCLOSED THE AUTOPARTS DATASERVICE COMPANY SAID THE ACQUIRED BUSINESS PROVIDES AUTOMOBILE PHOTOINSPECTION SERVICES IN NEW JERSEY NEW YORK AND CALIFORNIA 9404190155 940419 RETAILING US CATALOGERS TEST INTERNATIONAL WATERS BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL BUOYED BY SUCCESS IN THE HIGHLY COMPETITIVE US MARKET A GROWING NUMBER OF CATALOG CONCERNS ARE TAKING THEIR OFFERINGS ABROAD SPIEGEL INC THE NO 2 US CATALOGER IS INTRODUCING THE YOUTHFUL LEISUREWEAR OF ITS EDDIE BAUER DIVISION TO GERMANY IT IS PLANNING A FALL MAILING TO JAPAN WHERE MAILORDER SALES ARE BOOMING LL BEAN INC THE FREEPORT MAINE SELLER OF OUTDOOR APPAREL ALSO IS TARGETING JAPAN J CREW INC A NEW YORK APPAREL CATALOG CONCERN IS HEADED FOR FRANCE INTERNATIONAL EXPANSION WILL BE A PRIMARY AVENUE OF GROWTH FOR US SAYS WILLIAM J O'NEILL LANDS' END INC VICE PRESIDENT INTERNATIONAL FOR THE DODGEVILLE WIS SELLER OF UPSCALE MERCHANDISE CONDITIONS HAVE RIPENED HE SAYS AS TWOWORKER FAMILIES HAVE INCREASED DELIVERY SERVICE HAS QUICKENED AND SHOPPING BY MAIL HAS BECOME MORE POPULAR LANDS' END LAST YEAR OPENED A DISTRIBUTION CENTER IN BRITAIN AND PLANS A MASS MAILING TO JAPAN LATER THIS YEAR THE MOVE ABROAD COMES AMID CONTINUED GROWTH IN THE US MAILORDER BUSINESS IN 1993 MORE THAN 8000 CATALOG HOUSES ISSUED 12 BILLION BOOKS IN THE US NO COMPANY TOOK MORE THAN A 64 SHARE OF THE 55 BILLION IN TOTAL SALES WHICH ARE EXPECTED TO INCREASE 7 THIS YEAR IN CONTRAST TO THEIR US COUNTERPARTS WHICH GENERALLY ARE SMALLER AND OFFER SPECIALTY MERCHANDISE THE STRONGEST EUROPEAN CATALOGERS ARE HUGE CONCERNS THAT OFFER EVERYTHING FROM CLOTHING AND FURNITURE TO CONSUMER ELECTRONICS AND APPLIANCES THEIR MAINSTAY CATALOGS RUN 700 TO 1300 PAGES AND THEIR SHARES OF HOMEMARKET MAILORDER SALES RANGE FROM 20 TO 35 JAPAN'S SITUATION IS SIMILAR WITH MAILORDER SALES IN 1992 OF ABOUT 17787 BILLION THAT MOST OF THE US CATALOGERS HEADING OVERSEAS SPECIALIZE IN BASIC WORK AND LEISURE APPAREL IS NO ACCIDENT THOSE GOODS HAVE THE WIDEST CROSSCULTURAL APPEAL PEOPLE IN JAPAN WEAR WHITE SHIRTS AND TIES AND THE WOMEN WEAR SKIRTS AND JACKETS AND WE SELL ALL THOSE THINGS SAYS MR O'NEILL EDDIE BAUER WHOSE PARENT IS 90 OWNED BY GIANT GERMAN CATALOGER OTTO VERSAND BELIEVES GROWTH FOR SPECIALTY CATALOG COMPANIES WILL DEPEND ON THEIR SUCCESS AS BRANDS IN THE YEARS TO COME WHAT WILL SEPARATE BRANDS IS THEIR ABILITY TO CROSS A LOT OF COUNTRIES NOT JUST NORTH AMERICA SAYS RAY MCCREADY EDDIE BAUER SENIOR VICE PRESIDENT THE FATE OF US CATALOGERS WILL DEPEND ON HOW WELL THEY CAN REPRODUCE THEIR MARKETING AND DISTRIBUTION SUCCESS SAYS AAD WEENING HEAD OF THE EUROPEAN MAIL ORDER TRADE ASSOCIATION IN BRUSSELS THEY ALSO MUST ADAPT OPERATIONS TO LOCAL CONSTRAINTS AND OUTRUN LOCAL COMPETITION THAT IS GOOD AND GETTING BETTER HE SAYS FOR INSTANCE GIANT FRENCH CATALOGER LA REDOUTE WARY OF JCREW'S IMPENDING ARRIVAL LAST YEAR LAUNCHED A BOOK THAT OFFERS CLOTHING SIMILAR TO JCREW'S LA REDOUTE ALSO GUARANTEES FREE 48HOUR DELIVERY TO SOME 800 POINTS IN FRANCE MOST EUROPEAN CATALOGERS ARE WELLEXPERIENCED IN INTERNATIONAL MARKETS ABOUT ONETHIRD OF LA REDOUTE'S SALES ARE TO CUSTOMERS IN 12 OTHER COUNTRIES OTTO VERSAND WHICH COLLECTS ALMOST HALF ITS CATALOG SALES OUTSIDE GERMANY OWNS THE NO 4 UK CATALOG HOUSE LAST YEAR IT BOUGHT AN ITALIAN MAILORDER COMPANY AND RECENTLY SET UP A SMALL CATALOG OPERATION IN CHINA LL BEAN SAYS IT ALREADY MAILS CATALOGS TO 146 COUNTRIES NEARLY 70 OF ITS FOREIGN SALES ARE FROM JAPAN 20 FROM CANADA AND 6 FROM BRITAIN BUT COMPANY OFFICIALS WON'T SAY WHAT PERCENTAGE OF ITS 745 MILLION IN 1993 SALES WERE FROM ITS INTERNATIONAL OPERATIONS LANDS' END SAYS ONLY THAT OVERSEAS SALES ACCOUNTED FOR LESS THAN 10 OF ITS 870 MILLION OVERALL SALES ACCORDING TO CHICAGOBASED CATALOG PRINTER RR DONNELLY & SONS CO OVERALL MAILORDER SALES IN JAPAN ACCOUNT FOR 13 OF RETAIL SALES COMPARED WITH 48 IN THE US AND GERMANY AND 34 IN THE UK JAPAN'S MAILORDER SALES ARE GROWING 15 TO 20 A YEAR CATALOG SALES IN THE UK GREW 75 LAST YEAR BUT FELL 14 IN RECESSIONPLAGUED GERMANY TO TEST THE WATERS LANDS' END BEGAN MAILING CATALOGS TO THE UK IN 1991 ITS BRITISH DISTRIBUTION CENTER REDUCED DELIVERY TIME TO THREE DAYS FROM TWO WEEKS LANDS' END MAILS 70PAGE VERSIONS OF ITS STANDARD 160PAGE US CATALOG 10 TIMES A YEAR IN THE UK EDDIE BAUER'S JAPANESE CATALOG WILL BE WRITTEN IN JAPANESE LL BEAN'S CATALOG WILL STICK TO ENGLISH ALTHOUGH ITS ORDER FORMS WILL BE IN JAPANESE 9404190153 940419 ECONOMY FED BOOSTS SHORTTERM RATES 1/4 POINT FED FUNDS FEE NOW 3 3/4 PRIME FEES ARE RAISED BY SEVERAL MAJOR BANKS BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL RESERVE RAISED SHORTTERM INTEREST RATES ANOTHER 1/4 PERCENTAGE POINT YESTERDAY AND IS LIKELY TO KEEP BOOSTING RATES IF THE ECONOMY CONTINUES TO SHOW EXUBERANCE THE FED RAISED ITS TARGET FOR THE FEDERAL FUNDS RATE AT WHICH BANKS LEND TO EACH OTHER BY 1/4 PERCENTAGE POINT TO 3 3/4 THE THIRD SUCH INCREASE SINCE THE BEGINNING OF FEBRUARY WALL STREET ANALYSTS QUICKLY CONCLUDED THAT THE FED IS LIKELY TO RAISE RATES ANOTHER 1/4 PERCENTAGE POINT WHEN FED OFFICIALS HOLD A REGULARLY SCHEDULED MEETING MAY 22 AND SEVERAL EXPECT FURTHER INCREASES BEFORE YEAREND BANC ONE CORP'S LEAD BANK RESPONDED PROMPTLY TO THE FED'S LATEST MOVE BY BOOSTING ITS PRIME INTEREST RATE TO 675 FROM 625 CITICORP CHEMICAL BANKING CORP BANK OF NEW YORK CO QUICKLY FOLLOWED THE INTEREST RATES ON MANY HOMEEQUITY LOANS SMALLBUSINESS LOANS AND CREDITCARD BORROWING ARE PEGGED TO THE PRIME RATE WHICH WAS INCREASED FROM 6 LESS THAN A MONTH AGO AFTER THE FED'S MARCH MOVE BY BOOSTING SHORTTERM INTEREST RATES THE FED WILL SLOW THE GROWTH OF THE US ECONOMY IN COMING MONTHS BY RAISING THE COST OF BORROWING HOW MUCH THE ECONOMY IS SLOWED DEPENDS LARGELY ON THE REACTION OF THE BOND MARKET WHERE LONGTERM RATES ARE SET THE BOND MARKET YESTERDAY BOOSTED YIELDS ON 30YEAR TREASURY BONDS TO 741 THE HIGHEST IN 15 MONTHS FROM 728 THE YIELD ON 10YEAR TREASURY NOTES WHICH INFLUENCE MORTGAGE RATES ROSE TO 714 FROM 694 LAST FRIDAY MOREOVER STOCKS DECLINED BROADLY YESTERDAY WITH THE DOW JONES INDUSTRIAL AVERAGE FALLING 4105 POINTS TO 362042 LONGTERM RATES HAVE INCREASED MORE THAN CAN BE JUSTIFIED BY THE STRENGTH OF THE ECONOMY AND ANY POTENTIAL INCREASE OF INFLATION SAID ST LOUIS FORECASTER LAURENCE MEYER HE EXPECTS THE ECONOMY TO EXPAND A HEALTHY 32 THIS YEAR AND A MODERATE 25 NEXT MEASURED FROM FOURTH QUARTER TO FOURTH QUARTER BUT IF LONGTERM INTEREST RATES PERSIST AT CURRENT LEVELS OR RISE FURTHER THINGS COULD SLOW DOWN MORE HE SAID THE HOUSING INDUSTRY PARTICULARLY SENSITIVE TO INTEREST RATES WILL BE AMONG THE FIRST TO FEEL THE PAIN RATES ON 30YEAR FIXEDRATE MORTGAGES WHICH WERE AT 7 BEFORE THE FED BEGAN BOOSTING SHORTTERM RATES IN EARLY FEBRUARY ARE NOW CLOSE TO 85 THE NATIONAL ASSOCIATION OF HOME BUILDERS WHICH HAD PREDICTED THAT BUILDERS WOULD START 1430000 UNITS THIS YEAR IS NOW CONTEMPLATING LOWERING ITS FORECAST ASSOCIATION ECONOMIST MICHAEL CARLINER SAID THE INCREASE IN MORTGAGE RATES HAS ALSO CHOKED OFF THE REFINANCING BOOM WHICH HAD BEEN HELPING TO FUEL CONSUMER SPENDING MOST ECONOMISTS SAY THAT HIGHER RATES WON'T HOWEVER DAMPEN BUSINESS SPENDING ON NEW EQUIPMENT AN IMPORTANT SOURCE OF STRENGTH TO THE ECONOMY RIGHT NOW COMPANIES ARE STILL STRIVING TO IMPROVE THEIR PRODUCTIVITY AND RATES WOULD HAVE TO GO UP A WHOLE LOT MORE TO CURB INVESTMENT SPENDING SIGNIFICANTLY SAID BRUCE STEINBERG A MERRILL LYNCH & CO ECONOMIST BUSINESS INVESTMENT DECISIONS ARE INFLUENCED BY FINANCING COSTS OF COURSE BUT ALSO ON BUSINESSES' EXPECTATIONS FOR SALES WITH THE ECONOMY GROWING FASTER THAN ANTICIPATED SALES FORECASTS REMAIN ROSY IN MOST INDUSTRIES FED CHAIRMAN ALAN GREENSPAN HAS SAID THE FED HAD BEEN HOLDING SHORTTERM INTEREST RATES ADJUSTED FOR INFLATION NEAR ZERO TO STIMULATE A SLUGGISH ECONOMY THAT WAS RESTRAINED BY A WIDESPREAD DETERMINATION TO REDUCE DEBT BUT WITH THE ECONOMY NOW GROWING AT A ROBUST PACE HE HAS SAID THE FED HAS CONCLUDED THAT IT IS TIME TO TAKE THE FOOT OFF THE ACCELERATOR AND PUT MONETARY POLICY INTO A NEUTRAL STANCE SOME FED POLICYMAKERS ARE DETERMINED TO TRY TO PUSH THE INFLATION RATE BELOW CURRENT LEVELS OTHERS LESS ENAMORED WITH THE GOAL OF ELIMINATING INFLATION ALTOGETHER FEAR THAT THE US ECONOMY IS NOW GROWING SO LUSTILY THAT IT WILL OVERHEAT NEXT YEAR AND THE INFLATION RATE WILL RISE UNLESS THE FED ACTS NOW MR GREENSPAN HAS NOTED THAT ADJUSTED FOR INFLATION SHORTTERM INTEREST RATES WERE CLOSE TO ZERO AFTER THE LATEST FED MOVE THE RATES ARE NOW ROUGHLY 3/4 MR GREENSPAN WON'T SAY HOW MUCH FURTHER RATES WILL HAVE TO RISE TO REACH NEUTRAL ROBERT REISCHAUER DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE SAID NEUTRAL PROBABLY MEANS INFLATIONADJUSTED RATES OF SOMEWHERE BETWEEN 3/4 AND 1 1/2 BUT CHIEF WHITE HOUSE ECONOMIST LAURA TYSON HAS SAID THAT EXCLUDING THE ANOMALOUS 1980S INFLATIONADJUSTED INTEREST RATES HAVE ALWAYS BEEN BELOW 1 INTERNAL FED ESTIMATES ARE HIGHER ONE FED POLICYMAKER PUT THE RELEVANT HISTORIC AVERAGE AT BETWEEN 1 AND 1 1/2 THAT SUGGESTS THE FEDERAL FUNDS RATE MAY RISE TO 4 OR 4 1/2 BEFORE THE FED RESTS BUT YALE UNIVERSITY ECONOMIST JAMES TOBIN A NOBEL LAUREATE SAID THERE'S NO FOUNDATION IN ECONOMIC THEORY THAT THERE IS ANY REAL OR INFLATIONADJUSTED INTEREST RATE WHICH IS NEUTRAL INDEPENDENT OF ECONOMIC CIRCUMSTANCES HE CRITICIZED THE LATEST FED MOVE AS AN UNPROVOKED ATTACK ON THE ECONOMY TWO LIBERAL SENATE DEMOCRATS PAUL SARBANES OF MARYLAND AND JAMES SASSER OF TENNESSEE SEE THINGS THE SAME WAY IT SEEMS THAT AS THE ECONOMY COMES UP FOR AIR THE FED SHOVES IT BACK DOWN THEY SAID IN A JOINT STATEMENT THE WHITE HOUSE WAS MUCH MORE CAUTIOUS IN ITS RESPONSE PRESIDENT CLINTON TOLD REPORTERS THAT THE FED'S MOVE SHOULD NOT DO ANYTHING TO HARM THE ECONOMIC RECOVERY AND HIS CHIEF ECONOMIST MS TYSON SAID THE REAL STORY ABOUT THE ECONOMY IS NOT RISING SHORTTERM INTEREST RATES BUT RISING EXPECTATIONS ABOUT REAL GROWTH MOST PRIVATE FORECASTS NOW EXPECT THE COMMERCE DEPARTMENT TO REPORT NEXT WEEK THAT THE ECONOMY GREW AT MORE THAN A 3 ANNUAL RATE IN THE FIRST QUARTER DESPITE THE DAMPING EFFECTS OF THE CALIFORNIA EARTHQUAKE AND UNUSUALLY COLD WEATHER MANY ARE PREDICTING THAT GROWTH COULD EXCEED 4 SPARKING FEARS THAT THE ECONOMY WILL GROW SO FAST THAT INFLATIONARY PRESSURES WILL EMERGE ALTHOUGH MANY PRIVATE FORECASTERS EXPECT THE ECONOMY TO GROW AT BETTER THAN A 35 ANNUAL RATE IN THE FIRST HALF THE BIG QUESTION IS HOW MUCH THE ECONOMY WILL SLOW AFTER THAT AND FORECASTERS ARE DIVIDED ON THAT QUESTION RIGHT NOW THE NUMBERS ON THE ECONOMY LOOK VERY GOOD MS TYSON SAID GROWTH IS SOLID SOMEWHAT STRONGER DURING THE FIRST QUARTER THAN EXPECTED BUT ALL OF THE NUMBERS ON INFLATION REMAIN VERY GOOD THERE'S NO EVIDENCE OF THE ECONOMY OVERHEATING MR CLINTON'S BEST OPPORTUNITY TO INFLUENCE FED POLICY IS TO FILL THE TWO VACANCIES ON THE SEVENMEMBER FEDERAL RESERVE BOARD A PROCESS THAT HAS DRAGGED ON ALTHOUGH HE HASN'T MADE ANY ANNOUNCEMENT AIDES SAY MR CLINTON HAS DECIDED TO NAME WHITE HOUSE ECONOMIST ALAN BLINDER TO BE VICE CHAIRMAN MR CLINTON'S ECONOMIC ADVISERS ARE CLOSE TO A CONSENSUS ON A RECOMMENDATION FOR THE OTHER VACANCY THE SEARCH HAS BEEN COMPLICATED BY A LEGAL REQUIREMENT THAT EACH FED GOVERNOR COME FROM A DIFFERENT REGION OF THE COUNTRY WHITE HOUSE AIDES SAID THAT MARCUS ALEXIS AN ECONOMIST AT NORTHWESTERN UNIVERSITY AND MARCELLE ARAK A FINANCE PROFESSOR AT THE UNIVERSITY OF COLORADO WERE AMONG THE FINAL FOUR CANDIDATES BUT NEITHER IS THE MOST LIKELY CHOICE AS IT DID IN FEBRUARY AND MARCH THE FED ISSUED A STATEMENT ANNOUNCING THE RATE INCREASE IN THE PAST THE FED MOVED THE FEDERAL FUNDS RATE BY BUYING OR SELLING TREASURY SECURITIES AND ALLOWED FINANCIAL MARKET ANALYSTS TO SPREAD THE NEWS ALTHOUGH CHAIRMAN GREENSPAN CONSULTED BY TELEPHONE WITH MEMBERS OF THE FED'S POLICY COMMITTEE BEFORE THE ANNOUNCEMENT A FED SPOKESMAN MADE A POINT OF SAYING THAT MR GREENSPAN ACTED ON THE BASIS OF THE AUTHORITY HE WAS GIVEN AT THE COMMITTEE'S MARCH MEETING AND THAT MR GREENSPAN DIDN'T SEEK A COMMITTEE VOTE RECENT PUBLISHED REPORTS HAVE SUGGESTED THAT FED POLICYMAKERS HAVE LIMITED MR GREENSPAN'S AUTHORITY BY INSISTING THAT DECISIONS TO MOVE RATES BE MADE ONLY AT MEETINGS OF THE COMMITTEE IN THE PAST MR GREENSPAN OFTEN MOVED RATES BETWEEN MEETINGS AS HE DID YESTERDAY 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 9404190152 940419 INTERNATIONAL FILMES LUSOMUNDO US FIRM TO ENTER CABLETV IN PORTUGAL LISBON PORTUGAL FILMES LUSOMUNDO SA HAS REACHED AN AGREEMENT WITH UNITED INTERNATIONAL HOLDINGS INC OF DENVER TO ENTER PORTUGAL'S UNDERDEVELOPED CABLETELEVISION MARKET THE ACCORD BRINGS TOGETHER PORTUGAL'S LARGEST MULTIMEDIA GROUP WITH AN OFFSHOOT OF UNITED CABLE TELEVISION CORP A PIONEER IN THE U S CABLE MARKET UIH WHICH WAS CREATED BY UNITED CABLE EXECUTIVES TO DEVELOP INTERNATIONAL MULTICHANNEL TELEVISION SYSTEMS HAS CABLE INTERESTS IN HUNGARY ISRAEL NORWAY AND MALTA AND RECENTLY AGREED TO MERGE ITS EUROPEAN CABLE OPERATIONS WITH THOSE OF PHILIPS CONSUMER ELECTRONICS THIS IS A LOGICAL STEP IN OUR GLOBAL STRATEGY OF BECOMING A MULTIMEDIA COMPANY SAID FRANQUELIM ALVES LUSOMUNDO'S FINANCIAL DIRECTOR LUSOMUNDO HOWEVER WOULDN'T SAY HOW MUCH IT PLANS TO INVEST IN THE JOINT VENTURE OR HOW FAST IT EXPECTS CABLE TELEVISION TO DEVELOP IN PORTUGAL MR ALVES SAID THE COMPANY HOPES TO BEGIN BROADCASTING IN THE OPORTO AREA IN 1995 WITH AN INITIAL INVESTMENT OF AS MUCH AS NINE BILLION ESCUDOS 514 MILLION FROM THERE THE COMPANY PLANS TO OFFER CABLE SERVICES IN LISBON BEFORE EVENTUALLY BRANCHING OUT TO COVER OTHER AREAS OF PORTUGAL WHERE IT HOPES TO PROVIDE SERVICES TO ABOUT 400000 HOUSEHOLDS IN THE NEXT FIVE YEARS BECAUSE OF THE RESTRICTIVE LEGISLATION REGULATING CABLE TELEVISION THE 5050 JOINT VENTURE WILL INITIALLY ONLY BE ABLE TO REBROADCAST EXISTING CHANNELS AND PROGRAMMING WE'RE NOT ALL THAT CLEAR ON HOW TO APPROACH CABLE YET MR ALVES ACKNOWLEDGED THERE ARE MANY THINGS THAT ARE NOT YET DEFINED IN THE NEW LAW BUT WE ARE POSITIONING OURSELVES TO TAKE ADVANTAGE OF NEW OPPORTUNITIES AS THEY OPEN UP PORTUGAL LAGS BEHIND EUROPE IN EVERYTHING OUR POTENTIAL IS ENORMOUS IN FACT BECAUSE PORTUGAL'S MARKET IS SO SMALL LUSOMUNDO ISN'T SURE WHETHER TO COMPETE OR TO JOIN FORCES WITH PORTUGAL TELECOM THE NEW COMPANY THAT IS EXPECTED TO EMERGE NEXT MONTH FROM THE MERGER OF TWO OF THE STATEOWNED TELECOMMUNICATIONS GROUPS 9404190151 940419 PHH CORP PLANS TO BUY STOCK HUNT VALLEY MD PHH CORP SAID IT WILL REACTIVATE A PLAN TO REPURCHASE AS MANY AS 800000 OF ITS 175 MILLION COMMON SHARES OUTSTANDING THE BOARD OF THIS MANAGEMENT SERVICES COMPANY ORIGINALLY APPROVED THE PLAN IN LATE 1987 BUT NEVER CARRIED IT OUT PHH SAID THE SHARES WOULD BE USED FOR EMPLOYEE BENEFIT PLANS AND POSSIBLE ACQUISITIONS 9404190150 940419 MONDAY'S MARKETS STOCKS SLIDE FOLLOWING BONDS DOWN FEDFUNDS RATE RISE DISHEARTENS INVESTORS DOLLAR ENDS LOWER BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCKS TUMBLED AMID FALLING BOND PRICES AFTER THE FEDERAL RESERVE PUSHED UP SHORTTERM INTEREST RATES FOR THE THIRD TIME THIS YEAR THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE SANK 4105 POINTS OR 11 TO 362042 STANDARD & POOR'S 500STOCK INDEX FELL 372 OR 08 TO 44246 AND THE NASDAQ COMPOSITE INDEX FELL 752 OR 1 TO 72045 STOCKS TRACKED BOND PRICES THROUGHOUT THE DAY FOLLOWING ANOTHER QUARTERPERCENTAGEPOINT BOOST IN THE FEDERALFUNDS RATE TO 375 THE FEDERALFUNDS RATE IS THE RATE FOR OVERNIGHT LOANS BETWEEN BANKS ECONOMICALLY SENSITIVE STOCKS LED THE DECLINE AS INVESTORS WORRIED THAT HIGHER RATES MAY CHOKE OFF ECONOMIC GROWTH THE DOW JONES TRANSPORTATION AVERAGE OFTEN AN INDICATOR OF FUTURE ECONOMIC PERFORMANCE SANK 2494 OR 15 TO 158531 THERE'S SERIOUS CONCERN THAT HIGHER RATES ARE GOING TO WEAKEN THE RECOVERY SO THAT EARNINGS MAY NOT BE AS STRONG AS PREVIOUSLY THOUGHT SAID BERNADETTE MURPHY DIRECTOR OF TECHNICAL ANALYSIS AT MONEY MANGEMENT FIRM M KIMELMAN BUT JOSEPH BATTIPAGLIA CHIEF INVESTMENT STRATEGIST AT GRUNTAL SAID HE WAS ENCOURAGED THAT YESTERDAY'S RATIO OF DECLINING STOCKS TO RISING ONES WASN'T AS POOR AS IN OTHER RECENT PLUNGES THAT SUGGESTS THERE'S A GROWING ACCEPTANCE OF THE NEW INTERESTRATE ENVIRONMENT HE SAID BYRON WIEN INVESTMENT STRATEGIST AT MORGAN STANLEY SAID THE RATE BOOST ADDED NO NEW CLOUDS ON THE STOCK MARKET'S HORIZON HE STILL BELIEVES THE CORRECTION IS IN ITS CONCLUDING STAGES THE MARKET IS PROBING FOR A BOTTOM MR WIEN SAID I'D BE BUYING INTO THIS DOWNTURN BY CONTRAST MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER IS STILL STARKLY BEARISH HE ASSAILED THE FED'S RATE INCREASE AS TOO MODEST HE FEARS THAT BECAUSE THE RATE BOOSTS ARE COMING IN DRIBS AND DRABS WE'LL SEE THE MAXIMUM TIGHTENING JUST AS THE ECONOMY IS GETTING READY TO ROLL OVER AND SLOW DOWN MR METZ STOOD BY HIS TARGET OF 3100 ON THE INDUSTRIAL AVERAGE BY JULY WE'VE SEEN THE FIRST LEG OF THE BEAR MARKET AND NOW WE'RE GETTING READY FOR THE NEXT LEG HE SAID OVERSEAS THE FED'S ACTION RUMBLED THROUGH EUROPEAN STOCK AND BOND MARKETS BEFORE THE FED ANNOUNCEMENT GERMAN STOCKS WERE UP AS MUCH AS 18 FRENCH SHARES 13 HIGHER AND BRITISH STOCKS UP 07 BUT BY THE END OF TRADING THE BRITISH STOCK MARKET HAD FALLEN ALMOST 1 FRENCH STOCKS WERE FLAT AND THE RISE IN GERMANY HAD BEEN SHAVED TO 13 WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX SLIPPED 007 TO 11361 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2715 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1645 ISSUES FELL AND 631 ROSE THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17090 MARKS AND 10318 YEN COMPARED WITH 17135 MARKS AND 10345 YEN FRIDAY 9404190149 940419 WHO'S NEWS BGS SYSTEMS INC BGS SYSTEMS INC WALTHAM MASS JUDITH N GOLDBERG WAS NAMED A DIRECTOR OF THIS SOFTWARE COMPANY FILLING A VACANCY ON THE BOARD CREATED BY THE RECENT DEATH OF HER HUSBAND COMPANY COFOUNDER ROBERT GOLDBERG THE GOLDBERG FAMILY CONTROLS ABOUT 18 OF BGS SHARES MRS GOLDBERG IS CHAIRMAN OF YOUNG AUDIENCES OF MASSACHUSETTS INC A NONPROFIT GROUP 9404190148 940419 TOYOTA'S SALES ARMS IN CALIFORNIA ACCUSED OF INFLATING PRICES A WALL STREET JOURNAL NEWS ROUNDUP A SUIT AGAINST TOYOTA MOTOR SALES USA INC TOYOTA MOTOR DISTRIBUTORS INC AND TWO TOYOTA DEALER ADVERTISING GROUPS IN CALIFORNIA CHARGES THAT THE DEFENDANTS AGREED TO INFLATE INVOICE PRICES OF TOYOTA VEHICLES AND THUS OVERCHARGE CUSTOMERS AS MUCH AS 300 EACH THE SUIT WHICH SEEKS AN UNSPECIFIED AMOUNT OF DAMAGES CHARGES THAT TOYOTA'S US SALES ARM AND THE OTHER DEFENDANTS IMPROPERLY INFLATED THE PRICE OF EVERY TOYOTA VEHICLE SOLD IN CONTRA COSTA COUNTY CALIF BEGINNING IN SEPTEMBER 1991 BY BETWEEN 1 AND 2 THE DEALERS INVOLVED IN THE SUIT FALSELY REPRESENTED THE INCREASE TO CUSTOMERS AS AN ADVERTISING EXPENSE IN VIOLATION OF CALIFORNIA LAWS THE SUIT ALLEGES TOYOTA DECLINED TO COMMENT ON THE SUIT WHICH WAS FILED IN THE SUPERIOR COURT OF THE STATE OF CALIFORNIA THE LAWYERS FOR THE PLAINTIFFS JOSEPH W COTCHETT AND MARIE SETH WEINER OF THE BURLINGAME CALIF FIRM OF COTCHETT ILLSTON & PITRE HAVE ASKED THE COURT TO MAKE THE SUIT A CLASSACTION CASE PLAINTIFFS IN THE CASE ARE ERIC LIVINGSTON AND STEPHEN GROSSE BOTH RESIDENTS OF CONTRA COSTA COUNTY TOYOTA DEALERS IN LOS ANGELES COUNTY BEGAN BOOSTING PRICES ILLEGALLY BY 2 IN MARCH 1993 ALSO UNDER THE GUISE OF HIGHER ADVERTISING EXPENSES THE SUIT ALLEGES THERE ARE A TOTAL OF 104 DEALERS IN THE DEALER ADVERTISING ASSOCIATIONS THAT REPRESENT CONTRA COSTA COUNTY AND LOS ANGELES COUNTY THE SUIT CHARGES THAT OFFICIALS OF TOYOTA MOTOR SALES AND TOYOTA MOTOR DISTRIBUTORS BOTH UNITS OF TOYOTA MOTOR CORP HELD MEETINGS WITH SAN FRANCISCOAREA DEALERS IN THE LATE 1980S TO DISCUSS WAYS THE DEALERS COULD BOOST PROFIT MARGINS IN THE FACE OF THE GROWING POPULARITY OF DISCOUNT CARSELLING OPERATIONS SUCH AS CREDIT UNIONS AND PRICE CLUB WHICH BASED PRICES ON DEALERINVOICE PRICES TOYOTA AND THE DEALERS MEMBERS OF THE NORTHERN CALIFORNIA TOYOTA DEALERS ADVERTISING ASSOCIATION AGREED TO RAISE INVOICE PRICES ON ALL TOYOTA CARS AND TRUCKS BY AN EXTRA 1 BEGINNING IN SEPTEMBER 1991 THE SUIT CHARGES TWO YEARS LATER INVOICE PRICES WERE RAISED AN ADDITIONAL 1 THE SUIT CHARGES THE SUIT CHARGES THAT THE EXTRA MONEY WAS PAID BACK TO DEALERS EACH MONTH NOT USED FOR ADVERTISING 9404190147 940419 WHO'S NEWS SOFTECH INC SOFTECH INC WALTHAM MASS THE COMPANY SAID DOUGLAS T ROSS ITS 64YEAROLD CHAIRMAN AND FOUNDER RESIGNED A SUCCESSOR WASN'T NAMED NORMAN RASMUSSEN REMAINS PRESIDENT AND CHIEF EXECUTIVE OFFICER MR ROSS WAS ONCE CHIEF EXECUTIVE BUT HE GAVE UP THAT ROLE IN 1975 TO CONCENTRATE ON DEVELOPING SOFTWARE FOR THE GOVERNMENT MARKET SOFTECH SOLD ITS GOVERNMENTRELATED SOFTWARE BUSINESS LAST YEAR AND NOW GETS MOST OF ITS REVENUE FROM RESELLING COMPUTER SYSTEMS MADE BY OTHERS ESPECIALLY IN THE COMPUTERAIDED DESIGN MARKET SOFTECH SAID MR ROSS IS TRAVELING AND COULDN'T BE REACHED 9404190146 940419 WHO'S NEWS INTERSTATE GENERAL CO INTERSTATE GENERAL CO ST CHARLES MD GREGORY G KREIZENBECK 47 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATIONS OFFICER AT THIS REAL ESTATE DEVELOPMENT AND HOMEBUILDING CONCERN MR KREIZENBECK SUCCEEDS JAMES J WILSON WHO HELD THOSE POSITIONS SINCE FOUNDING THE COMPANY IN 1957 MR WILSON 60 CONTINUES AS THE COMPANY'S CHIEF EXECUTIVE OFFICER AND CHAIRMAN FOR THE COMPANY'S MANAGING GENERAL PARTNER MR KREIZENBECK WAS PREVIOUSLY FOUNDER AND PRINCIPAL OF THE KREIZENBECK GROUP 9404190145 940419 COASTAL CORP SUBSIDIARY HOUSTON COASTAL CORP'S COASTAL GAS MARKETING CO SUBSIDIARY ANNOUNCED THE ESTABLISHMENT THROUGH AN AFFILIATE OF A CANADIAN GAS SUPPLY AND MARKETING OFFICE IN CALGARY COASTAL CORP SAID COASTAL GAS HAS BEEN ACTIVE IN THE CANADIAN NATURALGAS BUSINESS FOR SEVERAL YEARS PROVIDING NATURALGAS AND STORAGE SERVICES TO EASTERN CANADIAN DISTRIBUTORS IN ADDITION TO BEING A MAJOR GASSUPPLY SOURCE FOR US MARKETS ITS EXPANSION GIVES COASTAL A BROADER POSITION IN THE CANADIAN NATURALGAS SUPPLY INDUSTRY 9404190144 940419 INTERNATIONAL UK MARCH OUTPUT PRICES ROSE LONDON BRITISH PRODUCEROUTPUT PRICES ROSE A PROVISIONAL UNADJUSTED 01 IN MARCH FROM FEBRUARY WHILE PRODUCERINPUT PRICES ROSE A SEASONALLY ADJUSTED 05 THE UNITED KINGDOM CENTRAL STATISTICAL OFFICE SAID YESTERDAY THE RISE IN UNADJUSTEDOUTPUT PRICES IN MARCH MATCHES MARKET ESTIMATES FOR A 01 RISE ON FEBRUARY THE RISE IN ADJUSTEDINPUT PRICES IS ABOVE MARKET ESTIMATES FOR A 03 RISE ON THE MONTH A TREASURY SPOKESMAN SAID THE DATA SHOW THAT INFLATIONARY PRESSURES REMAIN WEAK 9404190143 940419 TECHNOLOGY & HEALTH NINTENDO PLANS NEW VIDEO GAME FOR RELEASE IN '95 BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO NINTENDO CO SAID IT WILL STEP UP ITS RESPONSE TO COMPETITORS BY DEVELOPING A NEW STANDALONE VIDEO GAME MACHINE FOR SALE EARLY NEXT YEAR THE ANNOUNCEMENT MARKS A SURPRISING SHIFT FOR NINTENDO WHICH PREVIOUSLY HAD PLANNED ON GOING WITHOUT NEW PRODUCTS UNTIL LATE NEXT YEAR THAT'S WHEN NINTENDO PLANS TO RELEASE A NEW HOME GAME MACHINE CODE NAMED PROJECT REALITY THAT IT HAS LONG HYPED AS THE CORE OF ITS FUTURE GAMEMACHINE STRATEGY AND THE DAWN OF A NEW AGE IN HOME ENTERTAINMENT EVEN IF THE MOREMODEST NEW GAME MACHINE PLUGS A STRATEGIC HOLE FOR NINTENDO ANALYSTS SAID THEY DOUBTED IT WILL HELP MUCH TO REVERSE THE COMPANY'S DEEPER PROBLEMS SLUMPING EARNINGS AND SHARE PRICE COUPLED WITH A DECLINE IN MARKET SHARE MOST OF THOSE PROBLEMS ARE THE RESULTS OF NINTENDO'S OWN STRATEGIC MISSTEPS INTENSE COMPETITION FROM SEGA ENTERPRISES LTD AND THE EXPECTED ENTRY OF MAJOR CONSUMERELECTRONICS FIRMS INTO THE GAME MARKET NINTENDO ONCE DOMINATED NINTENDO SAID THE NEW COMPUTER WHICH SHOULD RETAIL FOR LESS THAN 200 WILL BE A VIRTUAL REALITY GAME MACHINE THAT WILL GIVE PLAYERS THE SENSE THEY'VE ENTERED THE WORLD OF A VIDEO GAME THE MACHINE WILL HAVE ITS OWN SCREEN AND WON'T MAKE USE OF GOGGLES OR OTHER EYE WEAR FOR THE VIRTUALREALITY EFFECT NINTENDO SAID IF THAT DESCRIPTION OF VIRTUAL REALITY SOUNDS AT ALL CONFUSING NINTENDO ISN'T EAGER TO CLEAR UP THE MYSTERY NOBODY UNDERSTANDS WHAT VIRTUAL REALITY IS JUST LIKE THEY DON'T UNDERSTAND MULTIMEDIA SAID YASUHIRO MINAGAWA AN OFFICIAL IN NINTENDO'S GENERALAFFAIRS OFFICE OUR CREATORS HAVE FOUND A SOLUTION IN TERMS OF MAKING CHALLENGING AND INTERESTING VIRTUALREALITY GAMES NINTENDO'S SHARES CLOSED AT 6700 YEN 6477 IN TOKYO TRADING YESTERDAY DOWN 50 YEN THE NEW MACHINE WILL USE A 32BIT MICROPROCESSOR CHIP SIMILAR TO THOSE IN NEW GAME MACHINES PLANNED BY SEGA AND SONY CORP DURING THE PAST SEVERAL YEARS NINTENDO OFFICIALS HAVE GONE OUT OF THEIR WAY TO BELITTLE COMPETING 32BIT GAMES AS NOT POWERFUL ENOUGH TO INTEREST GAME PLAYERS PROJECT REALITY BY CONTRAST WILL USE A 64BIT MICROPROCESSOR THE BIG SELLERS FOR BOTH NINTENDO AND SEGA ARE STILL 16BIT GAME MACHINES ANALYSTS SAID THE NEW MACHINE SOUNDS LIKE A SUCCESSOR TO NINTENDO'S AGING GAME BOY A HANDHELD GAME MACHINE WITH A MONOCHROME SCREEN IN THE US THE MOST COMPETITIVE VIDEOGAME MARKET GAME BOY HAS RECENTLY BEEN LOSING GROUND TO SEGA'S COLOR HANDHELD PLAYER GAME GEAR ALTHOUGH GAME BOY STILL LEADS IN TOTAL SALES NINTENDO WOULDN'T SAY WHETHER THE NEW MACHINE IS A PORTABLE PRODUCT 9404190142 940419 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN EXPRESSING A NEW BULLISH ATTITUDE ABOUT REFORM EFFORTS THE US SAID RUSSIA WILL GET ITS 15 BILLION CHECK FROM THE INTERNATIONAL MONETARY FUND FOLLOWING IMF APPROVAL OF A PACT TOMORROW NEGOTIATIONS FOR THE SECOND PART OF A TRANSFORMATION FUND WERE COMPLETED IN ST PETERSBURG WHERE IMF AND INDUSTRIAL NATIONS' OFFICIALS ARE ATTENDING THE ANNUAL MEETING OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT IN CONTRAST TO WESTERN GLOOM EARLY THIS YEAR ABOUT RUSSIAN ECONOMIC REFORM EFFORTS A US OFFICIAL SAID THE COUNTRY HAS REDUCED INFLATION TO MONTHLY SINGLE DIGITS AND DRAFTED A 1994 BUDGET WITH A DEFICIT THAT IS 9 OF GROSS DOMESTIC PRODUCT LESS THAN THAT OF ITALY BUT CONTINUED CREDIT CONTROL HAS POLITICAL PITFALLS AS HIGHPROFILE REFORMERS ARE EXCLUDED FROM RUSSIA'S GOVERNMENT MANY WESTERNERS DOUBT THE SINCERITY OF ITS EFFORTS SUCH AS MORE PRIVATIZATIONS THE REFORMERS LAUDED SUCCESSES BUT WERE SKEPTICAL ABOUT WHETHER RUSSIA CAN ACHIEVE GOALS OF CUTTING GOVERNMENT JOBS CLOSING BANKRUPT FIRMS AND ENDING SOME SUBSIDIES GERMANY'S RECESSION THE WORST SINCE WORLD WAR II HAS ENDED THE IFW ECONOMIC RESEARCH INSTITUTE IN HAMBURG SAID AS GERMAN RESEARCH INSTITUTES PREPARE TO PRESENT THEIR SPRING ASSESSMENTS TO THE GOVERNMENT THIS WEEK THE IFW PREDICTED GROSS DOMESTIC PRODUCT THIS YEAR WOULD INCREASE 1 IN WESTERN GERMANY AND SURGE 8 IN THE EASTERN REGION IN 1993 GERMAN GDP SHRANK AN INFLATIONADJUSTED 13 BASED ON A 19 WESTERN DECLINE AND 63 EASTERN INCREASE THE INSTITUTE SAID SUPPORT FOR THE ECONOMIC RECOVERY CAME FROM INTERESTRATE CUTS STINGIER WAGE SETTLEMENTS AND CORPORATE COST REDUCTIONS FRANCE IS PREPARING LEGISLATION TO COMBAT THE DISSEMINATION OF RACIST OR XENOPHOBIC IDEAS AN AIDE TO HARDLINE INTERIOR MINISTER CHARLES PASQUA SAID THE BILL TO BE SENT TO PARLIAMENT IN SEPTEMBER WOULD PROVIDE MAXIMUM PENALTIES OF TWO YEARS IN PRISON AND FINES OF 85000 FOR INCITING RACIAL DISCRIMINATION HATRED OR VIOLENCE AND APPLY TO THEORISTS OF RACIST IDEAS AS WELL AS PUBLISHERS POLICE WOULD BE EMPOWERED TO SEIZE RACIST HANDBILLS RACIST GROUPS WOULD BE DEFINED AS CRIMINAL CONSPIRACIES AND THE STATUTE OF LIMITATIONS WOULD BE AMENDED TO ALLOW PROSECUTIONS AS LONG AS A YEAR AFTER OFFENDING REMARKS THE SOUTH KOREAN GOVERNMENT SAID IT WOULD EXAMINE 102 STATEINVESTED COMPANIES SOON IN A BID TO ELIMINATE WIDESPREAD IRREGULARITIES INCLUDING FAVORITISM IN EMPLOYMENT AND INEFFICIENT MANAGEMENT THESE FIRMS HAVE INVESTMENTS FROM 23 ENTERPRISES MAJORITYOWNED BY THE GOVERNMENT IN 1992 ABOUT 20 STATEINVESTED FIRMS HAD DEFICITS DESPITE GOVERNMENT SUPPORT LABOR ACTIVISTS IN INDONESIA CONTINUED STRIKES FOR HIGHER PAY FREEDOM TO FORM INDEPENDENT UNIONS AND MORE GOVERNMENT ATTENTION TO WORKERS' PROBLEMS THEY ALSO DEMANDED THE RELEASE OF DEMONSTRATORS DETAINED BY POLICE SINCE PROTESTS BEGAN LAST WEEK THOUSANDS OF WORKERS PICKETED AREAS IN NORTH SUMATRA AROUND THE CAPITAL OF MEDAN ROCKED BY ETHNICALLY CHARGED VIOLENT RIOTING BETWEEN THE MILITARY AND WORKERS INDONESIA RECOGNIZES ONLY A GOVERNMENTSPONSORED UNION WHICH PROTESTERS VIEW AS A PAWN OF EMPLOYERS SINGAPORE BEGAN TESTING AN AUTOMATED SYSTEM TO BILL MOTORISTS FOR USING THE CITYSTATE'S ROADS WITHOUT STOPPING TO PAY TOLLS DEVICES ATTACHED TO VEHICLES HOLD DEBIT CARDS DETECTED ELECTRONICALLY BY MACHINES THAT DEDUCT THE TOLLS SINGAPORE IS CONSIDERING CHARGES BASED ON ROAD ENTRY MILES DRIVEN OR TRAFFIC CONGESTION THREE INTERNATIONAL CONSORTIUMS ARE COMPETING FOR THE 170 MILLION CONTRACT FOR THE SYSTEM SCHEDULED TO START OPERATING AFTER 1996 HUNGARY'S FIRST PROGRAM TO ENCOURAGE BROAD INDIVIDUAL PARTICIPATION IN SELLOFFS OF STATEOWNED ENTERPRISES GOT OFF TO A ROUSING START AS LONG LINES FORMED AT APPLICATION CENTERS INVESTORS EAGERLY SIGNED UP FOR THE STOCK PURCHASE PROGRAM WHICH PROVIDES EASY CREDIT TERMS INCLUDING GOVERNMENTGUARANTEED INTERESTFREE LOANS THE CENTERRIGHT GOVERNMENT HAD SAID MARKET FORCES ALONE SHOULD DETERMINE SALES OF STATE ASSETS BUT AFTER FOUR YEARS IT EXPANDED THE EFFORT AMID WANING FOREIGN INTEREST IN THE REMAINING STATE FIRMS GROWING PUBLIC DISENCHANTMENT WITH THE FOREIGNDOMINATED PRIVATIZATION PROCESS AND THE GOVERNMENT'S LOW POPULAR STANDING AHEAD OF NEXT MONTH'S ELECTIONS THE FIRST OFFERING AMONG A PLANNED 70 VALUED AT 116 BILLION OVER THE NEXT FIVE YEARS IS HUNGARY'S 384 STAKE IN SOPRON BREWERY LTD 51OWNED BY BRAU UNION AG OF AUSTRIA THOUGH THE STATEFINANCED PROGRAM WON'T GENERATE FRESH CAPITAL THE SELLOFFS COULD EXPAND STOCK MARKET LIQUIDITY AND THE POPULARITY OF INVESTING AN IRISH FARM RESEARCH AGENCY HEEDING EUROPEAN UNION CALLS TO DIVERSIFY FROM CONVENTIONAL CROPS APPLIED TO GROW MARIJUANA THE EXPERIMENTAL PLOT WOULD PRODUCE HEMP USED TO MAKE TWINE AND HARVESTED BEFORE GAINING POTENCY AS A DRUG A WINE BOTTLE CONTAINING THE ADDRESS OF THE AUSTRALIAN TOURIST WHO TOSSED IT FROM A CRUISE SHIP OFF NORTHERN JAPAN ON SEPT 1 1988 WAS FOUND 4350 MILES AWAY ON SIBU ISLAND OFF MALAYSIA WHERE A RESORT IS OFFERING THE WRITER A FREE HOLIDAY 9404190141 940419 SWISS JUDGE LETS US SEIZE ANTAR'S ACCOUNT IN CRAZY EDDIE CASE NEW YORK IN A HIGHLY UNUSUAL RULING A SWISS JUDGE ALLOWED US AUTHORITIES TO CONFISCATE 40 MILLION FROM A GENEVA BANK ACCOUNT HELD BY CRAZY EDDIE ELECTRONICS CHAIN FOUNDER AND CONVICTED STOCK SWINDLER EDDIE ANTAR THE SECURITIES AND EXCHANGE COMMISSION WHICH SUCCESSFULLY PROSECUTED MR ANTAR ON CIVIL FRAUD CHARGES SAID THE SWISS RULING WAS MADE MARCH 15 BUT NOT DISCLOSED UNTIL LAST WEEK TO MY KNOWLEDGE IT'S THE FIRST TIME A SWISS COURT HAS HANDED DOWN A RULING ENFORCING AN SEC JUDGMENT SAID RICHARD SIMPSON AN SEC LAWYER THIS IS A PRECEDENT ALTHOUGH MR ANTAR SIGNED OVER THE MONEY IN THE ACCOUNT MARCH 23 THE SEC SAID IT MAY USE THE JUDGE'S DECISION TO PURSUE OTHER SWISS ACCOUNTS THE MONEY WILL GO TOWARD PAYING OFF A SMALL PORTION OF THE LOSSES SUFFERED BY INVESTORS IN MR ANTAR'S DEFUNCT CHAIN MR ANTAR FACES SENTENCING IN FEDERAL COURT IN NEWARK NJ APRIL 29 FOR A CRIMINAL FRAUD CONVICTION 9404190140 940419 WHEELINGPITTSBURGH STEEL PITTSBURGH MEMBERS OF THE UNITED STEELWORKERS OF AMERICA WHO WORK FOR WHEELINGPITTSBURGH STEEL CORP APPROVED A NEW 31MONTH CONTRACT BY A VOTE OF 3082 TO 912 TERMS OF THE CONTRACT WHICH RUNS UNTIL OCT 1 1996 WERE SET ON MARCH 3 AFTER A TWODAY STRIKE ITS HIGHLIGHTS INCLUDE TWO ACROSSTHEBOARD WAGE INCREASES OF 50 CENTS AN HOUR THE FIRST EFFECTIVE SEPT 25 AND THE SECOND EFFECTIVE DEC 31 1995 A TOTAL OF 2250 IN GUARANTEED LUMPSUM BONUSES ONE ADDITIONAL HOLIDAY AND IMPROVED HEALTHCARE COVERAGE FOR ACTIVE WORKERS 9404190139 940419 CITICORP REINSTATES QUARTERLY PAYOUT FIRST IN 2 1/2 YEARS BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CITICORP SAID IT WOULD REINSTATE ITS QUARTERLY DIVIDEND AT 15 CENTS A SHARE THE FIRST DIVIDEND ON COMMON STOCK IN 2 1/2 YEARS THE MOVE REFLECTS THE BANKING CONCERN'S RENEWED FINANCIAL STRENGTH AND WAS PRESAGED BY THE ANNOUNCEMENT EARLIER IN THE YEAR THAT REGULATORS WERE TERMINATING THEIR CLOSE REGULATORY SUPERVISION OF THE BANK IN THAT RESPECT THE MOVE WAS WIDELY EXPECTED IN FACT SOME SOME INVESTORS WERE EXPECTING A QUARTERLY DIVIDEND OF AS MUCH AS 20 CENTS A SHARE CITICORP SAID THE DIVIDEND IS PAYABLE JUNE 17 TO STOCK OF RECORD MAY 31 ANALYST SAY IT'S THE BEGINNING OF RISING DIVIDEND LEVELS AT THE NATION'S LARGEST BANKING COMPANY CITICORP MADE THE ANNOUNCEMENT ON THE EVE OF TODAY'S ANNUAL MEETING I WOULD LIKE TO SEE HOW CHAIRMAN JOHN REED IS GOING TALK ABOUT THIS REINSTATEMENT IN TERMS OF THE FUTURE PAYOUT RATIO SAID THOMAS HANLEY BANKING ANALYST AT FIRST BOSTON CORP CITICORP SUSPENDED ITS DIVIDEND AMID HUGE LOSSES IN THE REAL ESTATE MARKETS AND ELSEWHERE BUT SINCE THE END OF 1990 IT HAS INCREASED ITS TOTAL REGULATORY CAPITAL FROM 16 BILLION TO 235 BILLION AND DOUBLED ITS TIER ONE EQUITY CAPITAL RATIO TO 68 OF ASSETS MR REED IN A PREPARED STATEMENT SAID WE ARE PLEASED THAT CITICORP'S EARNINGS PROGRESS AND FINANCIAL CONDITION LED THE BOARD OF DIRECTORS TO DECLARE A QUARTERLY DIVIDEND OF 15 CENTS PER SHARE FOR THE COMMON STOCKHOLDERS IN DECIDING ON A DIVIDEND OF THIS LEVEL THE BOARD CONSIDERED OUR 199495 FOCUS ON FURTHER STRENGTHENING THE BALANCE SHEET AND FUNDING CITIBANK'S GROWTH OPPORTUNITIES CITICORP WILL ANNOUNCE ITS FIRSTQUARTER RESULTS TODAY MOST ANALYSTS EXPECT EARNINGS OF BETWEEN 105 AND 115 A SHARE 9404190138 940419 SOUTHWESTERN BELL ACQUISITION A PURCHASE PRICE WASN'T DISCLOSED AS REPORTED THE TELECOMMUNICATIONS COMPANY LAST NOVEMBER AGREED TO PURCHASE THE PROPERTIES FROM SYRACUSE TELEPHONE CO AND UTICA TELEPHONE CO BOTH OWNED BY KENNETH HOROWITZ A FLORIDA BUSINESSMAN THE PURCHASE OF A THIRD PROPERTY IN ITHACA NY IS EXPECTED TO BE FINALIZED BY MIDYEAR SOUTHWESTERN BELL ALSO SIGNED AN AGREEMENT IN FEBRUARY WITH PITTSBURGHBASED ASSOCIATED COMMUNICATIONS CORP TO PURCHASE FOUR OTHER PROPERTIES IN UPSTATE NEW YORK 9404190137 940419 RAWSTEEL PRODUCTION ROSE 06 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 06 LAST WEEK TO 1910000 TONS FROM 1899000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 57 FROM THE 1807000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 915 OF ITS CAPABILITY LAST WEEK COMPARED WITH 909 THE PREVIOUS WEEK AND 855 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITYUTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9404190136 940419 MARKETING & MEDIA EMI MUSIC MAKES EQUITY INVESTMENT IN DIGITAL CABLE BY JEFFREY A TRACHTENBERG STAFF REPORTER OF THE WALL STREET JOURNAL IN A MOVE THAT REFLECTS THE MUSIC INDUSTRY'S GROWING ENTHUSIASM FOR REACHING CUSTOMERS OUTSIDE OF ORDINARY DISTRIBUTION CHANNELS EMI MUSIC HAS BECOME AN EQUITY INVESTOR IN DIGITAL CABLE RADIO ASSOCIATES LP A 24HOUR CABLEDELIVERED NATIONAL MUSIC SUBSCRIPTION SERVICE THAT DOES BUSINESS AS MUSIC CHOICE EMI MUSIC A UNIT OF THORN EMI PLC OF LONDON IS JOINING TWO OTHER MUSIC COMPANIES THAT HAVE ALREADY INVESTED IN THE 30STATION OPERATION SONY SOFTWARE CORP A UNIT OF SONY CORP AND TIME WARNER INC'S WARNER MUSIC GROUP OTHER PARTNERS INCLUDE SIX MAJOR CABLE COMPANIES THOUGH EMI'S INVESTMENT IS ESTIMATED ONLY AT ABOUT 10 MILLION IT MARKS THE THIRD TIME IN RECENT MONTHS THAT THE COMPANY HAS JOINED HANDS WITH RIVALS IN THE MUSIC INDUSTRY LATE LAST YEAR EMI TOGETHER WITH POLYGRAM 75OWNED BY PHILIPS ELECTRONICS NV WARNER MUSIC GROUP AND SONY MUSIC ENTERTAINMENT HELPED LAUNCH THE VIVA MUSIC VIDEO CHANNEL IN GERMANY AND IN JANUARY 1994 THE FOUR MUSIC COMPANIES TOGETHER WITH TICKETMASTER CORP ANNOUNCED PLANS TO LAUNCH A 24HOUR ADSUPPORTED MUSIC CHANNEL IN THIS COUNTRY DESIGNED TO COMPETE WITH VIACOM INC'S MTV NETWORKS WE'RE INTERESTED IN KEEPING ABREAST OF EMERGING TECHNOLOGIES AND THIS IS A WAY FOR US TO HELP EXPOSE PEOPLE TO MUSIC THAT THEY MIGHT NOT OTHERWISE HEAR ON REGULARLY FORMATTED RADIO SAID JAMES FIFIELD PRESIDENT AND CHIEF EXECUTIVE OF EMI MUSIC MR FIFIELD NOTED THAT AS THE MUSIC INDUSTRY ITSELF CONTINUES TO FRAGMENT INTO EVER MORE NARROW STYLES OF MUSIC SUCH DISTRIBUTION SERVICES AS DIGITAL CABLE RADIO WILL BECOME INCREASINGLY IMPORTANT ALL 30 OF THE MUSIC SERVICE'S STATIONS ARE NARROWLY PROGRAMMED TO SPECIFIC LISTENING INTERESTS RANGING FROM CLASSICAL TO JAZZ BLUES AND HIPHOP A SUBSCRIBER CAN TAP INTO ANY OF THE 30 STATIONS DIGITAL CABLE RADIO LAUNCHED IN MAY 1990 IS BASED IN HORSHAM PA AND SAYS IT HAS IN EXCESS OF 125000 SUBSCRIBERS WHO PAY 6 TO 12 A MONTH FOR THE MUSIC SERVICE THAT SUBSCRIPTION BASE IS EXPECTED TO EXPAND SIGNIFICANTLY LATER THIS YEAR AFTER GENERAL MOTORS CORP'S GM HUGHES ELECTRONICS CORP UNIT LAUNCHES DIRECTV INC A DIRECT BROADCAST SATELLITE SERVICE SERVING NORTH AMERICA DIGITAL CABLE SAYS IT RECENTLY SIGNED AN AGREEMENT THAT WILL MAKE IT PART OF DIRECTV'S BASIC PACKAGE 9404190135 940419 TECHNOLOGY ISG PRODUCT IS CLEARED THE COMPANY SAID THE VIEWING WAND IS AN IMAGEGUIDANCE DEVICE THAT HELPS NEUROSURGEONS AND EAR NOSE AND THROAT SURGEONS DURING SURGERY BY GIVING THEM A CLEAR PICTURE OF THE PATIENT'S ANATOMY AND ALLOWING THEM TO NAVIGATE AROUND CRITICAL STRUCTURES ISG SAID SURGEONS DURING CLINICAL TRIALS REPORTED SHORTER SURGERIES FEWER COMPLICATIONS AND REDUCED HOSPITAL STAYS FOR PATIENTS 9404190134 940419 MCDONNELL'S 1STQUARTER NET FELL 38 ROCKWELL'S PROFIT ROSE IN ITS 2ND PERIOD BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL MCDONNELL DOUGLAS CORP'S FIRSTQUARTER NET INCOME FELL 38 BUT THE AEROSPACE COMPANY TURNED IN STRONG OPERATING RESULTS BUOYED BY ITS DEFENSE BUSINESS AND COMPANYWIDE COSTCUTTING MEASURES NET INCOME WAS 134 MILLION OR 341 A SHARE DOWN FROM 216 MILLION OR 551 A SHARE A YEAR EARLIER BEFORE ACCOUNTING FOR 122 MILLION OF UNUSUAL GAINS IN THE 1993 PERIOD HOWEVER QUARTERLY EARNINGS WERE 94 MILLION OR 241 PER SHARE SEPARATELY ROCKWELL INTERNATIONAL CORP REPORTED THAT NET INCOME IN ITS FISCAL SECOND QUARTER WHICH ENDED MARCH 31 ROSE 13 TO 1547 MILLION OR 70 CENTS A SHARE FROM 1369 MILLION OR 63 CENTS SALES INCREASED 25 TO 276 BILLION FROM 269 BILLION THE SEAL BEACH CALIF CONCERN SAID ITS LARGEST SEGMENT ELECTRONICS HAD THE BIGGEST EARNINGS GAIN BUT THAT AUTOMOTIVE AEROSPACE AND GRAPHICS EARNINGS ALSO OUTPACED LAST YEAR'S RESULTS AT ST LOUISBASED MCDONNELL DOUGLAS REVENUE DROPPED 18 IN THE LATEST QUARTER TO 295 BILLION FROM 362 BILLION REFLECTING A CONTINUED SEVERE WEAKNESS IN MCDONNELL DOUGLAS'S COMMERCIALAIRCRAFT SHIPMENTS AND A SHARP DROP IN SPACESTATION REVENUE DESPITE THAT SHRINKAGE INVESTORS AND EXECUTIVES OF THE ONCETROUBLED COMPANY FOCUSED ON ITS LOWER DEBT HEAVY CASH GENERATION AND THE RISE IN OPERATING EARNINGS WHICH OWED LARGELY TO SUCH MILITARY AIRPLANES AS THE F/A18 ATTACK JET AND THE C17 TRANSPORT IT'S GOOD TO BE TALKING ABOUT THINGS LIKE THIS INSTEAD OF THE NEGATIVE THINGS THAT HAVE PLAGUED US IN THE PAST HERBERT J LANESE THE COMPANY'S CHIEF FINANCIAL OFFICER SAID BUT THE COMPANY STILL FACES TRYING TIMES IN IMPORTANT OPERATIONS REVENUE IN THE MISSILES SPACE AND ELECTRONIC SEGMENT SANK 31 TO 445 MILLION BECAUSE OF SCALEDDOWN SPACESTATION CONTRACTS AND COMMERCIALAIRCRAFT REVENUE PLUMMETED 53 AMID PERSISTENTLY WEAK ORDERS OPERATING EARNINGS FROM THAT BUSINESS WERE 3 MILLION DOWN FROM 12 MILLION IN 1993 THE COMPANY IS LIKELY TO WIN A NOTABLE INFUSION OF NEW ORDERS IN AN IMPENDING SALE TO SAUDI ARABIA AND MR LANESE EXPRESSED OPTIMISM OVER A FLURRY OF ACTIVITY IN QUERIES FROM CARRIERS ABOUT NEW ORDERS AND EXPEDITED DELIVERIES THAT ASSESSMENT DIFFERS SHARPLY FROM A RECENT ASSESSMENT BY PHILIP CONDIT PRESIDENT OF COMMERCIALAIRPLANE MARKET LEADER BOEING CO WHO SAID THAT WHILE THE MARKET CYCLE APPEARS TO HAVE BOTTOMED OUT INTEREST IN QUICKENED DELIVERIES SO FAR IS MINIMAL AND CERTAINLY NOTHING I WOULD RUN OUT AND WAVE MY FLAG ABOUT MCDONNELL DOUGLAS SHARES CLOSED UP 2625 AT 114125 A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ROCKWELL SHARES CLOSED UP 125 CENTS AT 3975 ALSO ON THE BIG BOARD 9404190133 940419 LETTERS TO THE EDITOR CLASSACTION LAWYERS ARE UNFAIRLY SMEARED YOUR MARCH 9 MARKETPLACE ARTICLE SHAREHOLDER SUITS BESET MORE SMALL COMPANIES AND ACCOMPANYING CHART ARE MISLEADING AND BIASED YOU SMEAR AS SELFSERVING AND IRRESPONSIBLE ALL CLASSACTION LAWYERS EVEN FIRMS LIKE OURS THAT HAVE EARNED EXCELLENT REPUTATIONS FOR SKILLFULLY PROSECUTING FLAGRANT FEDERAL SECURITIESLAW VIOLATIONS SUCCESSFULLY ON BEHALF OF BOTH SMALL AND LARGE INVESTORS OUR CLASSACTION CLIENTS ARE NOT PROFESSIONAL PLAINTIFFS IN OUR RJR NABISCO SECURITIES LITIGATION SETTLED FOR 725 MILLION WSJ FEB 26 1992 ONE OF OUR CLIENTS WAS THE CEO OF A PUBLIC COMPANY ONE A PROMINENT BUSINESSWOMAN AND ONE A HOUSEWIFE NONE HAD EVER SUED BEFORE IN OUR UNITED BRANDS LITIGATION OUR CLIENT WAS A 1939 GRADUATE OF MIT WITH A PHD IN MATHEMATICS WHO HAD NEVER BROUGHT A LAWSUIT BEFORE YOUR LITIGATION BONANZA CHART REFERENCES STATISTICS FROM THE SECURITIES CLASS ACTION ALERT OF CLASSACTION LAWSUITS SETTLED IN 1993 WE EXAMINED THE 12 ISSUES FOR 1993 THAT YOU CLAIM WERE THE SOURCE FOR THE CHART LISTED AMONG THE SETTLEMENTS WERE AMRE COMPTRONIX MICRON TECHNOLOGY BANK OF NEW ENGLAND MATTHEWS & WRIGHT ORACLE RJR NABISCO REGINA AMERICAN EXPRESS PRUDENTIAL BACHE REPUBLIC BANK VMS LIMITED PARTNERSHIPS AND CRAZY EDDIE NONE OF THESE LAWSUITS INVOLVED SMALL OR MIDSIZE COMPANIES REPORTING DISAPPOINTING EARNINGS SEVERAL OF THESE COMPANIES WERE THE SUBJECT OF SEPARATE SEC ENFORCEMENT ACTIONS AMRE MATTHEWS & WRIGHT ORACLE AND PRUDENTIAL BACHE AND SOME WERE EVEN THE SUBJECT OF CRIMINAL ACTIONS BROUGHT BY THE JUSTICE DEPARTMENT CRAZY EDDIE COMPTRONIX AND REGINA YOUR ARTICLE ALSO CLAIMS THAT CLASS ACTIONS ARE A MAJOR THREAT TO ENTREPRENEURIAL COMPANIES REFERENCING CERTAIN EXECUTIVES' COMPLAINTS IN FACT CLASS ACTIONS HAVE HAD LITTLE IMPACT ON THE ABILITY OF SMALL COMPANIES TO GROW AND PROSPER IN 1993 AND 1994 THE CAPITAL MARKETS HAVE EXPERIENCED RECORD NUMBERS OF IPOS IF THAT IS TO CONTINUE INVESTOR CONFIDENCE IN THE INTEGRITY OF OUR CAPITAL MARKETS MUST BE MAINTAINED THROUGH MEANINGFUL ENFORCEMENT OF THE SECURITIES LAWS IN THE PAST TWO YEARS WE HAVE WITNESSED MOUNTING AND INCREASINGLY MISLEADING ADVERSE PUBLICITY ABOUT SECURITIES CLASSACTION LAWYERS BEHIND THIS CAMPAIGN IS A LOBBYING ORGANIZATION WHOSE PURPOSE IS TO PUT AN END TO PRIVATE ENFORCEMENT OF THE FEDERAL SECURITIES LAWS ARTICLES AND CHARTS LIKE YOURS PROMOTE AN UNWORTHY CAUSE AND DO A DISSERVICE TO THE INVESTING PUBLIC 9404190132 940419 FOREIGN EXCHANGE DOLLAR FAILS TO SUSTAIN AN EARLY RALLY IN WAKE OF LATEST RATE INCREASE BY FED BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR FAILED TO SUSTAIN AN EARLY RALLY ON A SURPRISE FEDERAL RESERVE RATE INCREASE YESTERDAY AND WAS BADLY MAIMED ON ITS WAY DOWN WHEN US STOCK AND BOND MARKETS REACTED WITH A FORCEFUL BRUSHOFF INITIALLY THE DOLLAR CLIMBED ON A STATEMENT BY FED CHAIRMAN ALAN GREENSPAN DURING MIDMORNING NEW YORK TRADING THAT HE WAS INSTITUTING THE THIRD RATE BOOST SINCE FEB 4 WHEN THE FED BEGAN REVERSING COURSE ON INTEREST RATES THE ANNOUNCEMENT SIGNALED THAT THE FED FUNDS RATE THE OVERNIGHT RATE AT WHICH COMMERCIAL BANKS LEND TO EACH OTHER WAS BEING RATCHETED UP ANOTHER 25 BASIS POINTS TO 3 3/4 TRADERS SAID WHILE THEY WERE SURPRISED BY THE TIMING OF THE FED'S MOVE THE FACT OF A RATE BOOST HAD BEEN HEAVILY FACTORED INTO THE MARKET MAKING THE DOLLAR VULNERABLE ON ITS CLIMB ABOVE THE PSYCHOLOGICAL RESISTANCE LEVEL OF 17200 MARKS THE DOLLAR'S SLIDE WAS THEN GREASED BY LOSSES IN THE US STOCK AND BOND MARKETS WHICH TURNED JITTERY ON PERCEPTIONS THAT THE FED WASN'T REACTING AGGRESSIVELY ENOUGH TO STAVE OFF INFLATION LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17090 MARKS DOWN FROM 17135 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10318 YEN DOWN FROM 10345 YEN STERLING WAS TRADING AT 14765 UP FROM 14720 ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10317 YEN AND AT 17125 MARKS THE MARKET WOULD HAVE LIKED TO SEE A CLEARER SIGN BY THE FED THAT IT WAS SHIFTING TOWARD A MORE NEUTRAL POLICY STANCE SAID BERND BECKER ASSISTANT VICE PRESIDENT AT BANK JULIUS BAER HE ADDED THAT SOME PLAYERS HAD BEEN ON THE LOOKOUT FOR A 50BASISPOINT INCREASE IN THE FED FUNDS RATE ALONG WITH A MOVE HIGHER ON THE BENCHMARK DISCOUNT RATE MR BECKER SAID THAT THERE WAS GOOD DOLLAR BUYING ON THE RATEBOOST ANNOUNCEMENT WHICH PUSHED UP THE DOLLAR TO ITS INTRADAY HIGH OF 17220 MARKS BUT THE ADVANCE FAILED TO CHALLENGE LAST WEEK'S DOLLAR HIGH OF 17237 MARKS TRIGGERING A WAVE OF BEARISH SENTIMENT HE ADDED THEN BOND AND STOCK MARKET NERVOUSNESS SET IN PUSHING THE DOLLAR STILL LOWER PRICES FOR US TREASURYS DROPPED STEADILY THROUGH THE DAY CAUSING ANOTHER SLIDE ON THE STOCK MARKET WHERE THE DOW JONES INDUSTRIAL AVERAGE CLOSED AT 362042 DOWN 4105 IT DROVE HOME THE FACT THAT BONDS ARE WEAK AND THE STOCK MARKET IS WEAK AND THAT CAUSED A LIQUIDATION OF LONGDOLLAR POSITIONS MR BECKER SAID TRADERS SAID THE FED'S INTENT OF REASSURING THE BOND MARKET BY CONDUCTING ANOTHER SOCALLED PREEMPTIVE STRIKE AGAINST INFLATION AGAIN APPEARED TO HAVE BACKFIRED IN THEORY THE FED IS ACTING TO INHIBIT INFLATION DOWN THE LINE BUT THAT HASN'T FLUSHED WELL SAID ANGELO EVANGELISTA VICE PRESIDENT AT BANK OF BOSTON HE ADDED THAT THE MARKET FEARS THE FED MAY HAVE BEEN ACCOMMODATING FOR TOO LONG IN KEEPING INTEREST RATES LOW TO HELP SPUR AN ECONOMIC RECOVERY IN THE US THE FED KEPT THE PEDAL TO THE METAL TOO LONG AND ITS NOW HOPING IT ISN'T TOO LATE TO PUT THE BRAKES ON INFLATION MR EVANGELISTA SAID HE ADDED THAT US EQUITY AND BOND MARKETS ARE LIKELY TO REMAIN UNDER PRESSURE FOR A WHILE AS PARTICIPANTS CONTINUE TO LIQUIDATE DOLLARDENOMINATED ASSETS THE DOLLAR IS EXPECTED TO SUFFER MR EVANGELISTA SAID WE HAVE A LITTLE MORE INDIGESTION TO GO BEFORE WE APPROACH THE END OF THIS LIQUIDATION HE SAID MR EVANGELISTA PREDICTED THERE COULD BE AS MUCH AS A THREEMONTH LAG BEFORE CURRENCY MARKETS BEGIN TO REACT LOGICALLY AND INVEST IN THE US'S HIGHER INTERESTRATE ENVIRONMENT 9404190131 940419 WHO'S NEWS GANDALF TECHNOLOGIES APPOINTS VASSILIADES AS PRESIDENT AND CHIEF OTTAWA GANDALF TECHNOLOGIES INC A COMMUNICATIONSEQUIPMENT CONCERN THAT HAS BEEN REPORTING HEAVY LOSSES SAID THOMAS VASSILIADES HAS BEEN NAMED THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER MR VASSILIADES A FORMER BELL ATLANTIC CORP EXECUTIVE WILL SUCCEED BRIAN HEDGES ON MAY 10 MR HEDGES WHO HAS BEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER SINCE NOVEMBER 1992 WILL REMAIN A GANDALF DIRECTOR MR VASSILIADES 58 YEARS OLD HAS BEEN A GANDALF DIRECTOR SINCE LAST AUGUST AND HAS DONE CONSULTING WORK FOR THE COMPANY IN THE PAST YEAR GANDALF SAID YESTERDAY THAT IT EXPECTS TO REPORT A SIZABLE LOSS FOR THE FISCAL YEAR ENDED MARCH 31 IT WOULD BE THE COMPANY'S FIFTH CONSECUTIVE ANNUAL LOSS IN THE 1993 FISCAL YEAR GANDALF HAD A LOSS OF 195 MILLION ON REVENUE OF 1609 MILLION GANDALF RECENTLY ANNOUNCED ITS INTENTION TO ELIMINATE 300 JOBS OR MORE THAN 20 OF ITS WORK FORCE AS PART OF A RESTRUCTURING TO RESTORE THE COMPANY TO PROFITABILITY GANDALF'S SHARES CLOSED ON THE NASDAQ STOCK MARKET AT 10625 DOWN 125 CENTS OR 11 9404190130 940419 WHO'S NEWS CHAMPION ENTERPRISES INC CHAMPION ENTERPRISES INC AUBURN HILLS MICH A JACQUELINE DOUT WAS NAMED TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS PRODUCER OF MANUFACTURED HOUSING AND MIDSIZE BUSES MS DOUT 39 YEARS OLD WAS FORMERLY VICE PRESIDENT AND TREASURER OF MALLINCKRODT GROUP INC 9404190129 940419 PISTOLWHIPPED AS GUN CRIMES RISE BRITAIN IS CONSIDERING CUTTING LEGAL ARSENAL IT MAY TIGHTEN ITS TRADITION AGAINST FIREARMS TO LEAVE FEWER FOR THIEVES TO STEAL HOPING BAD GUYS PLAY FAIR BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL LONDON WHILE WALKING HIS BEAT LAST OCTOBER OFFICER PATRICK DUNNE CAME ACROSS THREE DRUG DEALERS THEY PRODUCED GUNS THE BOBBY HAD ONLY A WOODEN TRUNCHEON THEY LAUGHED AS THEY KILLED HIM IN A NATION SO RESTRICTIVE OF GUNS THAT MOST POLICE OFFICERS DON'T CARRY THEM MORE AND MORE CRIMINALS DO INCIDENTS OF ARMED ROBBERY HAVE MORE THAN DOUBLED SINCE 1983 GUNS ARE BOUGHT ON THE STREET THESE DAYS AS EASILY AS DRUGS LAST MONTH A MOTORCYCLIST STOPPED FOR A ROUTINE LICENSE CHECK HERE SHOT AND SERIOUSLY WOUNDED TWO POLICE OFFICERS NEITHER OF WHOM WAS ARMED THE ATTEMPTED HOLDUP OF A CANDY STORE LAST MONTH WAS COMMITTED BY A GUNTOTING ASSAILANT DESCRIBED AS EIGHT YEARS OLD A PORTRAIT OF CRIMINALS HOLDING GUNS ON AN UNARMED POPULACE HAUNTS THE HALLS OF EVERY US GUNCONTROL DEBATE AND WITH THE RECENT ENACTMENT OF LEGISLATION REQUIRING A FIVEDAY WAITING PERIOD AND BACKGROUND CHECK FOR HANDGUN PURCHASES THE SOCALLED BRADY BILL THAT PORTRAIT WILL BE USED TO ARGUE AGAINST FURTHER REGULATION BUT IN BRITAIN WHERE CRIMINALS INCREASINGLY ARE BETTER ARMED THAN ANYONE ELSE LAWMAKERS ARE CONSIDERING NEW WAYS OF REDUCING THE COUNTRY'S ALREADY MINIMAL LEGAL ARSENAL SOME MEMBERS OF PARLIAMENT FOR INSTANCE ARE ARGUING THAT HOME STORAGE OF FIREARMS CURRENTLY ILLEGAL WITHOUT A LICENSE OUGHT TO BE BANNED THIS GAMBLE IS BASED ON THE PREMISE THAT EVEN CRIMINALS HAVE A SENSE OF FAIR PLAY AUTHORITIES CONCEDE THAT REGULATION WON'T KEEP GUNS OUT OF THE HANDS OF CRIMINALS BUT CURRENT GUNCONTROL LAWS HAVE WORKED FAIRLY WELL WITH 99 OF CRIMES IN BRITAIN STILL INVOLVING NO FIREARMS BRITISH OFFICIALS SAY THEY WANT TO PRESERVE THE SENSE AMONG MOST CRIMINALS THAT FIREARMS AREN'T NEEDED AS LONG AS HOMEOWNERS SHOPKEEPERS AND MOST POLICE DON'T CARRY GUNS AUTHORITIES HOPE CRIMINALS WON'T FEEL THE NEED TO OWN OR USE THEM AN ARMED CRIMINAL MAY BE LESS LIKELY TO SHOOT IF HE KNOWS THE POLICE AREN'T ARMED SAYS FRAN EDWARDS SPOKESWOMAN FOR THE POLICE FEDERATION A NATIONAL UNION YET DISARMING THE CITIZENRY ISN'T POPULAR WITH EVERYONE ESPECIALLY AT A TIME OF NEARLY HYSTERICAL FEAR ABOUT CRIME BRITAIN'S CRIME RATE MAY BE SMALLER THAN AMERICA'S BUT BY LOCAL STANDARDS THE NUMBERS ARE FRIGHTENING IN THE PAST DECADE REPORTED CRIME HAS DOUBLED AND IT HAS TRIPLED IN CATEGORIES SUCH AS RAPE AND SERIOUS ASSAULT ANY HINT OF AMERICANSTYLE SAVAGERY CAUSES ALARM IN A COUNTRY THAT STILL PRIDES ITSELF ON GOOD BEHAVIOR POLITICIANS HERE FREQUENTLY POINT OUT THAT THE MURDER RATE IS ONEFIFTEENTH OF AMERICA'S BUT A SINGLE ACT OF BRUTALITY CAN OVERSHADOW THAT STATISTIC AS WHEN TWO 11YEAROLD SCHOOLBOYS KIDNAPPED AND MURDERED A TWOYEAROLD BOY LAST YEAR WITH OTHER SLAYINGS AT THE HANDS OF YOUTHS OCCURRING MORE AND MORE FREQUENTLY JUST LAST MONTH POLICE CHARGED A 13YEAROLD WITH THE FATAL STABBING OF AN 85YEAROLD WOMAN BRITAIN'S SENSE OF ITSELF AS MORE CIVILIZED THAN THE US IS BECOMING HARDER TO MAINTAIN SOME NEIGHBORHOODS HERE CAN BE AS ROUGH AS ANY STREET IN AMERICA AS DISCOVERED THIS YEAR BY SOME PENNSYLVANIA STATE UNIVERSITY STUDENTS ENROLLED AT BRITAIN'S MANCHESTER UNIVERSITY AFTER BEING HELD UP AT KNIFEPOINT THEN AT GUNPOINT THEN BEATEN UP AND TWICE BURGLARIZED THEY DECLARED IN THE NATIONAL PRESS THAT THEY FELT MORE VULNERABLE IN MANCHESTER THAN IN NEW YORK COMPARED WITH LONDON NEW YORK IS DOWNRIGHT SAFE IN ONE CATEGORY BURGLARY IN LONDON WHERE MANY HOMES HAVE BEEN BURGLARIZED HALF A DOZEN TIMES AND WHERE PSYCHOLOGISTS SPECIALIZE IN TREATING CHILDREN TRAUMATIZED BY SUCH THEFTS THE RATE IS NEARLY TWICE AS HIGH AS IN THE BIG APPLE AND BURGLARS HERE INCREASINGLY PREFER STRIKING WHEN OCCUPANTS ARE HOME SINCE ALARMS AND LOCKS TEND TO BE DISENGAGED AND INTRUDERS HAVE LITTLE TO FEAR FROM UNARMED RESIDENTS LITTLE WONDER THAT THERE NOW ARE SERIOUS CALLS TO FIGHT CRIME WITH BULLETS UNDER THE HEADLINE WHEN BAD GUYS RULE SHOTGUN IS A POWERFUL ANSWER A RECENT OPINION ARTICLE IN THE TIMES OF LONDON ASKED WOULD IT NOT BE BETTER IF THE KNIFEWIELDING YOBS WHO ARE TAKING OVER OUR STREETS WERE SIMPLY BLOWN AWAY A DAILY TELEGRAPH COLUMN TITLED MORE GUNS MORE SAFETY ARGUED THAT GUNS ARE NEEDED FOR PROTECTION BECAUSE LAW AND ORDER IS BREAKING DOWN LIKE US PROPONENTS OF GUN CONTROL GUN SUPPORTERS IN BRITAIN MUST CONTEND WITH A POWERFUL TRADITION EXCEPT HERE IT'S A TRADITION OF GUN CONTROL ENACTED IN 1920 BRITAIN'S FIRST FIREARMS LAW AROSE FROM GOVERNMENT FEAR OF A COMMUNIST REVOLUTION BUT IT DID A FINE JOB OF CURBING CRIME WHILE AMERICA EXPERIENCED ARMED ROBBERIES BY THE THOUSANDS IN THE 1950S HERE THE NUMBER RARELY TOPPED A DOZEN THE RARITY OF GUN CRIMES MEANT THAT BRITAIN NEVER DEVELOPED ANY TOLERANCE FOR THEM AFTER A FEW ROBBERS BRANDISHED SHOTGUNS IN THE 1960S PARLIAMENT ADDED SHOTGUNS TO THE LIST OF FIREARMS NEEDING LICENSING PREVIOUSLY JUST HANDGUNS AND RIFLES EVEN NOW WITH GUN CRIMES RISING SHOTS HERE SEEM TO RING MORE LOUDLY THAN IN THE US IN ENGLAND ALMOST EVERYONE KNOWS THE NAME MICHAEL RYAN HE SHOT AND KILLED HIS OWN MOTHER AND A POLICEMAN AND 14 OTHERS INCLUDING HIMSELF IN HUNGERFORD IN 1987 MR RYAN'S FIREARMS CERTIFICATE ALLOWED HIM TO OWN THREE PISTOLS AND TWO SEMIAUTOMATIC RIFLES INCLUDING THE RUSSIANMADE KALASHNIKOV AK47 THAT HE USED IN THE SLAUGHTER MARGARET THATCHER'S CONSERVATIVE GOVERNMENT RESPONDED TO THE KILLINGS BY ENACTING THE MOST DRACONIAN FIREARMS ACT EVER ADOPTED IN BRITAIN INCLUDING OUTLAWING SEMIAUTOMATIC WEAPONS ALTOGETHER IN COMPARISON NEITHER THENPRESIDENT BUSH A MEMBER OF THE NATIONAL RIFLE ASSOCIATION NOR THE CONGRESS CONSIDERED ANY REGULATION IN THE WAKE OF THE WORST GUN MASSACRE IN US HISTORY THE KILLING OF 23 AT A LUBY'S RESTAURANT IN KILLEEN TEXAS IN 1991 BECAUSE LOCAL POLICE DEPARTMENTS IN BRITAIN INTERPRET NATIONAL FIREARMS LAWS DIFFERENTLY REQUIREMENTS FOR OBTAINING A LICENSE DIFFER FROM REGION TO REGION BUT GENERALLY A PERSON WANTING A SHOTGUN LICENSE THE EASIEST TO OBTAIN MUST PAY A FEE OF 17 ABOUT 25 AND FILL OUT AN APPLICATION EXPLAINING WHY AND WHERE HE PLANS TO USE THE GUN SPORT IS ACCEPTABLE SELFPROTECTION ISN'T SUBMIT A LETTER FROM A DOCTOR OR OTHER QUALIFIED PROFESSIONAL ATTESTING TO A SOUND STATE OF MIND AND CONSTRUCT A BURGLARPROOF STORAGE CABINET AFTER ALL THAT A LOCAL POLICE SUPERINTENDENT CAN REJECT THE REQUEST THE ONLY RECOURSE AN EXPENSIVE PROPOSITION IS TO GO TO COURT AFTER THE THATCHER GOVERNMENT'S RULES TOOK EFFECT IN 1989 THE NUMBER OF BRITONS HOLDING CERTIFICATES FOR SHOTGUNS HANDGUNS OR RIFLES DROPPED 10 TO ABOUT 900000 COMPARED WITH 50 MILLION GUN OWNERS IN THE US AS FOR TOTAL GUNS IN BRITAIN EVEN THE BLEAKEST ESTIMATES PLACE THE NUMBER WELL BELOW FIVE MILLION MOST OF THEM LEGALLY CERTIFIED COMPARED WITH MORE THAN 220 MILLION GUNS IN AMERICA BRITAIN RECORDED 33 HANDGUN MURDERS IN 1992 COMPARED WITH MORE THAN 13000 IN THE US STILL THE NUMBER OF CRIMES INVOLVING FIREARMS ROSE MORE THAN 50 FROM 1982 THROUGH 1992 AND POLICE EXPECT THE INCREASE TO CONTINUE AS INTERNATIONAL DRUG DEALERS DEEPEN THEIR PENETRATION OF THE BRITISH MARKET IN A RECENT RAID OF A SUSPECTED CRIMINAL DEN IN LIVERPOOL POLICE FOUND A CACHE THAT INCLUDED THREE KALASHNIKOVS AND ONE ISRAELIMADE UZI SUBMACHINE GUN AS WELL AS AMMUNITION CONVINCED THAT THE BEST WAY TO CONTROL ILLEGAL WEAPONS IS TO TIGHTEN RESTRICTIONS ON LEGAL ONES SOME MEMBERS OF PARLIAMENT HAVE PROPOSED PROHIBITING ALL GUN LICENSES TO CITIZENS UNDER 17 WHO CURRENTLY NEED THE APPROVAL OF A GUARDIAN IN A MOVE THAT COULD CLOSE SCORES OF GUN CLUBS AND SHOOTING RANGES THE GOVERNMENT IS ATTEMPTING TO STRIP THEM OF THEIR CHARITABLE STATUS ORIGINALLY BASED ON THE ARGUMENT THAT THE CLUBS HELPED TRAIN THE POPULACE TO DEFEND THE REALM AND FOLLOWING SOME RECENT MURDERS AND SUICIDES INVOLVING LICENSED GUNS THERE IS A PROPOSAL TO CONSIDER BANNING THEM FROM HOMES ESSENTIALLY LIMITING GUNS TO THE SPORT CLUBS GUN ENTHUSIASTS AS MIGHT BE EXPECTED ARE FEELING SOMEWHAT BESIEGED SAYS LORD SWANSEA A MEMBER OF THE HOUSE OF LORDS AND OF BRITAIN'S NATIONAL RIFLE ASSOCIATION A SHOOTING GROUP UNCONNECTED TO AMERICA'S NRA FOR THE FIRST TIME BRITISH GUN GROUPS ARE BANDING TOGETHER TO TRY MUSTERING POLITICAL CLOUT IN PART BY THREATENING TO VOTE AGAINST GUN OPPONENTS IN PARLIAMENT BUT THOUGH THEY ECHO THE FAVORITE ARGUMENT OF AMERICA'S NRA THAT GUN REGULATION DISARMS EVERYONE EXCEPT CRIMINALS THEY DON'T BOAST ITS POLITICAL POWER IN 1988 FOR INSTANCE THE THATCHER GOVERNMENT DIDN'T EVEN CONSULT WITH ANY LEGITIMATE USERS OF GUNS BEFORE TIGHTENING CURBS GRUMBLES CHRISTOPHER BRUNKER SECRETARY OF THE GUN TRADE ASSOCIATION INSTEAD OF THE SHOOTING COMMUNITY FIGHTING BACK THERE HAS BEEN FAR TOO MUCH OF THE GENTLEMANLY OH WE HAVE TO MAKE SOME MORE CONCESSIONS' SAYS COLIN GREENWOOD EDITOR OF GUNS REVIEW MAGAZINE AND A LEADER OF THE EFFORT TO STRENGTHEN THE GUN LOBBY HERE BRITAIN'S GUN INDUSTRY ISN'T THAT STRONG EITHER THE NUMBER OF DEALERS HAS FALLEN 10 IN RECENT YEARS TO 2400 AND WHILE NO ONE WILL ESTIMATE THE VALUE OF THE BRITISH GUN MARKET BY ALL ACCOUNTS IT IS SMALL AND ON A 5 TO 10 DECLINE ANNUALLY SAYS PAUL ROBERTS CHAIRMAN OF JOHN RIGBY & CO ONE OF SEVERAL WORLDRENOWNED SHOTGUN MAKERS IN BRITAIN THE COMPANY PRODUCES ABOUT 50 GUNS A YEAR ABOUT HALF OF THEM FOR OVERSEAS CUSTOMERS THE 6000 PRICE TAG IN PART REFLECTS THE HIGH COST OF COMPLYING WITH REGULATIONS MR ROBERTS SAYS EACH SALE OF A FIREARM HAS TO BE RECORDED IN A CERTAIN WAY HE SAYS AND EVERY ROUND OF AMMUNITION THAT IS BOUGHT AND SOLD HAS TO BE RECORDED MR ROBERTS ESTIMATES THAT SUCH RULES HAVE RAISED HIS COSTS 30 IN RECENT YEARS DESPITE SUCH COMPLAINING NOBODY IN BRITAIN'S GUN INDUSTRY SEEMS TO FAVOR DEREGULATION LORD SWANSEA ONE OF THE STRONGEST ADVOCATES OF GUN RIGHTS SAYS YOU HAVE TO KEEP SOME SORT OF TAB ON OWNERSHIP OF ALL GUNS NOT JUST HANDGUNS IN THE SAME BREATH THAT ANDREW YOUNG MANAGING DIRECTOR OF BROWNING/WINCHESTER UK LTD COMPLAINS ABOUT POOR SALES IN BRITAIN HE SAYS HE WOULDN'T FAVOR ARMING ALL BOBBIES EVEN THOUGH HIS COMPANY HAS A CONTRACT TO SUPPLY GUNS TO THEM CURRENTLY ABOUT ONE IN 16 BRITISH POLICE OFFICERS IS TRAINED TO USE ARMS AND OPERATES IN AN ELITE FORCE THAT RESPONDS TO HIGHLY DANGEROUS SITUATIONS FOLLOWING THE MURDER OF OFFICER DUNNE LAST OCTOBER A POLICE REVIEW MAGAZINE SURVEY FOUND THAT ONLY 26 OF LONDON POLICE OFFICERS FAVORED DEPARTMENTWIDE ARMING BUT SINCE THAT SURVEY ONE OFFICER HAS BEEN KNIFED TO DEATH AND TWO OTHERS SHOT AND WOUNDED NOW EVEN TOP ADMINISTRATORS CONCEDE THAT GUNS EVENTUALLY WILL BECOME A PART OF POLICE EQUIPMENT IN BRITAIN ONE OF THREE COUNTRIES ALONG WITH IRELAND AND NEW ZEALAND WITH A MOSTLY UNARMED POLICE FORCE THE ATTITUDE OF THE COURTS MAY ALSO BE CHANGING AS ILLUSTRATED BY THE CASE OF AHMED MUHSEN ONE NIGHT TWO YEARS AGO THREE BURGLARS KICKED IN THE DOOR OF A GROCERY THAT MR MUHSEN WAS GUARDING IN LIVERPOOL AND DESPITE HIS WARNINGS CAME TOWARD HIM WIELDING CLUBS PRODUCING A BROWNING PISTOL THAT HE HAD BOUGHT ON THE STREET FOR THE EQUIVALENT OF 45 MR MUHSEN FIRED ONCE KILLING ONE INTRUDER AND SCARING OFF THE OTHER TWO AT MR MUHSEN'S TRIAL LAST MONTH ON CHARGES OF MANSLAUGHTER AND OWNING AN UNLICENSED PISTOL THE JUDGE EXPRESSED MORE OUTRAGE AT BRITAIN'S BURGLARS THAN AT MR MUHSEN IN MY VIEW THE JUDGE TOLD THE DEFENDANT YOUR REACTION WAS ONE WHICH MOST PEOPLE IN YOUR POSITION MIGHT WELL HAVE DISPLAYED HE THEN SENTENCED HIM TO A YEAR IN PRISON 9404190128 940419 WHO'S NEWS TWO EXECUTIVES AT APPLE COMPUTER PLAN DEPARTURES BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL CUPERTINO CALIF APPLE COMPUTER INC SAID TWO MORE TOP EXECUTIVES ARE LEAVING THE COMPANY THE PERSONALCOMPUTER MAKER SAID GASTON BASTIAENS GENERAL MANAGER OF APPLE'S PERSONAL INTERACTIVE ELECTRONICS DIVISION IS LEAVING TO SET UP HIS OWN BUSINESS ACTIVITIES MR BASTIAENS SPEARHEADED DEVELOPMENT OF APPLE'S NEWTON A MUCHTRUMPETED HANDHELD PENCONTROLLED COMPUTER THAT HAS RECEIVED MIXED REVIEWS ALTHOUGH COMPANY OFFICIALS DEFEND THE PRODUCT AND INSIST SALES ARE WITHIN EXPECTATIONS EARLY VERSIONS OF NEWTON WERE PLAGUED WITH SOFTWARE PROBLEMS AND WERE PANNED BY THE TRADE PRESS LATER VERSIONS OF THE PRODUCT ARE MORE HIGHLY REGARDED BUT SALES STILL HAVEN'T MATCHED SOME OF APPLE'S EARLY HYPE MOREOVER SUCH HIGHPOWERED COMPETITORS AS MOTOROLA INC ARE INTRODUCING RIVAL PRODUCTS ALSO DEPARTING IS MORRIS TARADALSKY GENERAL MANAGER OF APPLE'S BUSINESSSYSTEMS DIVISION MR TARADALSKY WILL BECOME PRESIDENT AND CHIEF EXECUTIVE OF MICRONET TECHNOLOGY INC AN IRVINE CALIF MAKER OF DATASTORAGE PRODUCTS NEITHER EXECUTIVE COULD BE REACHED TO COMMENT AND APPLE DIDN'T ELABORATE ON THE REASONS FOR THE DEPARTURES BOTH MEN WERE AMONG A SMALL CIRCLE OF TOP EXECUTIVES WITH CLOSE COMMUNICATIONS WITH APPLE'S CHIEF EXECUTIVE MICHAEL SPINDLER APPLE HAS BEEN HURT LATELY BY DECLINING MARKET SHARE IN CERTAIN KEY MARKETS AS WELL AS LACKLUSTER PERFORMANCE OF NEW PRODUCTS INCLUDING NEWTON THE DEPARTURES OF MR BASTIAENS AND MR TARADALSKY ARE LIKELY TO ADD TO PERCEPTIONS THAT APPLE IS STILL STRUGGLING TO REGAIN ITS COMPETITIVE FOOTING THE MOVES COME ON THE HEELS OF SEVERAL OTHER DEPARTURES OF HIGHPROFILE EXECUTIVES INCLUDING ROBERT PUETTE APPLE'S FORMER HEAD OF US MARKETING AND RANDY BATTAT ONE OF APPLE'S TOP PORTABLECOMPUTER EXECUTIVES THE EXODUS SOME ANALYSTS CONTEND IS RELATED IN PART TO THE DEPARTURE OF FORMER APPLE CHIEF EXECUTIVE JOHN SCULLEY WHO LEFT THE COMPANY LAST YEAR APPLE ANNOUNCED THE DEPARTURES LATE LAST NIGHT AFTER THE MARKET CLOSED IN NASDAQ STOCK MARKET TRADING APPLE CLOSED YESTERDAY AT 59625 A SHARE DOWN 625 CENTS 9404190127 940419 WELLSFORD PRIVATE PLACEMENT NEW YORK WELLSFORD RESIDENTIAL PROPERTY TRUST SAID TRUSTEES AUTHORIZED A PRIVATE PLACEMENT TO RAISE AT LEAST 100 MILLION THE REAL ESTATE INVESTMENT TRUST SAID IT INTENDS TO SELL ABOUT FOUR MILLION COMMON SHARES THROUGH THE PLACEMENT ALTHOUGH UNDERWRITERS HAVE THE OPTION TO SELL AS MANY AS SIX MILLION COMMON SHARES IF ALL SHARES ARE SOLD THE COMPANY WOULD RAISE ABOUT 150 MILLION WELLSFORD SAID PROCEEDS WOULD BE USED TO ACQUIRE ADDITIONAL PROPERTIES REDUCE DEBT AND ADD TO WORKING CAPITAL IT HAS 92 MILLION COMMON SHARES OUTSTANDING AS WELL AS PREFERRED SHARES CONVERTIBLE INTO ABOUT 32 MILLION COMMON SHARES 9404190126 940419 TECHNOLOGY & HEALTH AMERITECH PROFIT FELL 85 IN 1ST PERIOD DUE TO CHARGE U S WEST NET ROSE 25 BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERITECH CORP REPORTED SHARPLY LOWER PROFIT FOR THE FIRST QUARTER MAINLY DUE TO A ONETIME CHARGE WHILE ITS BABY BELL SIBLING U S WEST INC POSTED A SMALL INCREASE BOTH TELECOMMUNICATIONS COMPANIES SAID THEIR REVENUES ROSE BOOSTED BY ACCESSLINE GROWTH AND LARGE JUMPS IN CELLULAR SUBSCRIBERS AMERITECH BASED IN CHICAGO SAID ITS FIRSTQUARTER PROFIT DECLINED 85 TO 438 MILLION OR EIGHT CENTS A SHARE FROM 300 MILLION OR 55 CENTS A SHARE THE LATEST FIGURE INCLUDES A CHARGE OF 3328 MILLION OR 61 CENTS A SHARE RELATED TO A PREVIOUSLY REPORTED WORKFORCE REDUCTION OF 6000 POSITIONS BY THE END OF 1995 THE YEAREARLIER FIGURE INCLUDES A CHARGE OF 373 MILLION OR SEVEN CENTS A SHARE RELATED TO RESTRUCTURING AT TELECOM CORP OF NEW ZEALAND IN WHICH AMERITECH HAS A 25 STAKE BEFORE ONETIME CHARGES HOWEVER THE BABY BELL'S PROFIT ROSE 12 TO 3766 MILLION OR 69 CENTS A SHARE FROM 3373 MILLION OR 62 CENTS A SHARE ACCESS LINES A BAROMETER OF PHONE COMPANIES' PERFORMANCE ROSE A MODERATE 33 TO 178 MILLION LINES WHILE THE NUMBER OF CELLULAR SUBSCRIBERS SURGED 47 TO MORE THAN 949000 FROM A YEAR EARLIER AMERITECH SAID ITS COSTS AND EXPENSES BEFORE ONETIME CHARGES ROSE 4 DUE TO HIGHER MARKETING COSTS AND DEPRECIATION CHARGES SEPARATELY U S WEST REPORTED A 25 INCREASE IN FIRSTQUARTER PROFIT REFLECTING GROWTH IN TELEPHONE LINES AND IN CELLULAR SUBSCRIBERS AS WELL AS MORE STRINGENT COST CONTROLS THE COMPANY BASED IN ENGLEWOOD COLO SAID NET INCOME WAS 324 MILLION OR 73 CENTS A SHARE UP FROM 3161 MILLION OR 76 CENTS A SHARE THE COMPANY HAD 4444 MILLION SHARES OUTSTANDING AS OF MARCH 31 UP FROM 415 MILLION A YEAR EARLIER THE YEAREARLIER NET INCOME HAD BEEN BOOSTED BY EARNINGS FROM DISCONTINUED OPERATIONS TOTALING 20 MILLION OR FIVE CENTS A SHARE REVENUE ROSE 52 TO 264 BILLION FROM 251 BILLION U S WEST COMMUNICATIONS THE COMPANY'S MAIN TELECOMMUNICATIONS UNIT REPORTED AN 11 JUMP IN PROFIT TO 297 MILLION FROM 267 MILLION REFLECTING STRONG VOLUME GROWTH AND COST CONTROLS THE NUMBER OF TELEPHONE ACCESS LINES GREW BY 510000 OR 38 EXCLUDING THE EFFECTS OF THE SALE OF 20000 RURAL PHONE LINES U S WEST SAID ITS CELLULAR BUSINESS ADDED 64000 SUBSCRIBERS AN INCREASE OF 53 FROM THE 1993 FIRST QUARTER AND TELEWEST A JOINT VENTURE WITH CABLE GIANT TELECOMMUNICATIONS INC INCREASED ITS CABLETV SUBSCRIBERS BY MORE THAN 50 AND THE NUMBER OF PHONE LINES IT SERVES BY MORE THAN 70 IN THE PAST 12 MONTHS U S WEST SAID DANIEL REINGOLD ANALYST AT MERRILL LYNCH & CO SAID U S WEST'S TELEPHONE BUSINESS REFLECTS A STRONG REGIONAL ECONOMY ESPECIALLY IN THE ROCKY MOUNTAIN AND SUN BELT STATES THE COMPANY IS ALSO BENEFITING FROM LOOSER REGULATIONS IN KEY STATES AND THE LOWER RATES OF ENCROACHMENT FROM FIBEROPTIC PROVIDERS WHO POSE SIGNIFICANT COMPETITION IN OTHER REGIONS ALTHOUGH AMERITECH ALSO HAS GAINED FROM THE IMPROVING MIDWESTERN ECONOMY THE COMPANY HAS BEEN MORE CAUTIOUS THAN THE OTHER BELLS IN DIVERSIFYING BEYOND ITS CORE TELEPHONE BUSINESS AMERITECH IS STICKING TO ITS KNITTING MR REINGOLD SAID BUT THIS CAN BE DANGEROUS BECAUSE THE KNITTING LOCAL TELEPHONE SERVICE IS STILL HEAVILY REGULATED AND IS UNDER INCREASING COMPETITIVE PRESSURE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY AMERITECH CLOSED AT 3875 A SHARE UP 125 CENTS AND U S WEST CLOSED AT 40875 A SHARE UP 375 CENTS 9404190125 940419 POLITICS & POLICY COMPLAINTS THAT SOME INSURERS ARE REDLINING MINORITY HOMEOWNERS GET US STATE ATTENTION BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL KANSAS CITY MO HALFADOZEN INSURERS HAVE REFUSED HOMEOWNERS COVERAGE FOR MARRION HARDING'S BROOKLYN STREET HOUSE HERE SINCE 1986 ONE ALLSTATE INSURANCE CO TOLD HER IT WASN'T INSURABLE BECAUSE IT DIDN'T HAVE BURGLAR BARS NEARBY KATHLEEN WRIGHT HAS BURGLAR BARS BUT THAT DIDN'T STOP HARTFORD FIRE INSURANCE CO FROM CITING THE BARS AS EVIDENCE THAT SHE LIVES IN A HIGHCRIME NEIGHBORHOOD WHEN THE COMPANY CANCELED HER INSURANCE AFTER A BREAKIN THE TWO WOMEN JOIN THOUSANDS OF OTHERS HERE AND IN MINORITY NEIGHBORHOODS THROUGHOUT THE US WHO HAVE FOUND THAT HOME INSURANCE IS EITHER UNAFFORDABLE OR UNAVAILABLE AS A RESULT THEY FACE POTENTIALLY DEVASTATING LOSSES WHEN A FIRE OR THEFT OCCURS MANY CONTEND THEY'VE BEEN REDLINED OUT OF THE INSURANCE SYSTEM AS A RESULT OF PURPOSEFUL DISCRIMINATION OR DUE TO INDUSTRY PRACTICES SUCH AS BANS ON INSURING LOWVALUE HOMES THAT HIT MINORITY PERSONS HARDEST COMPLAINTS ABOUT INSURANCE REDLINING ARE GETTING AN INCREASINGLY SYMPATHETIC HEARING IN WASHINGTON AND IN STATE CAPITALS ACROSS THE NATION CONGRESS IS CURRENTLY CONSIDERING THREE BILLS THAT WOULD REQUIRE INSURERS TO DISCLOSE NEW INFORMATION ON THEIR POLICIES SO FEDERAL AND STATE GOVERNMENTS COULD BETTER DETERMINE WHETHER SYSTEMIC REDLINING IS OCCURRING IN ADDITION THE DEPARTMENTS OF JUSTICE AND HOUSING AND URBAN DEVELOPMENT HAVE BOTH LAUNCHED INVESTIGATIONS INTO POSSIBLE REDLINING BY INSURERS SEVERAL STATE LEGISLATURES HAVE PASSED OR ARE CONSIDERING INSURANCEREDLINING STATUTES AND STATE INSURANCE COMMISSIONERS IN MISSOURI AND CALIFORNIA HAVE LAUNCHED ENFORCEMENT ACTIONS AGAINST ALLEGED INSURANCE REDLINING IN RECENT MONTHS EARLIER THIS MONTH ROBERT WILLIS THE DISTRICT OF COLUMBIA INSURANCE COMMISSIONER SAID HE IS STARTING AN INVESTIGATION OF GEICO CORP FOLLOWING ALLEGATIONS THAT THE BIG INSURER HAS DISCRIMINATED AGAINST LOWERINCOME MINORITY NEIGHBORHOODS GEICO DENIED THAT IT DISCRIMINATES INSURERS INSIST THAT WHAT MAY SEEM LIKE DISCRIMINATION AGAINST LOWINCOME BLACKS IS NO MORE THAN CUTTING LOSS EXPOSURE IN AREAS OF HIGH THEFT VANDALISM OR ARSON FIRE RATES IN THE CASES OF THE TWO KANSAS CITY WOMEN BOTH THE UNIT OF ALLSTATE CORP CONTROLLED BY SEARS ROEBUCK & CO AND HARTFORD A UNIT OF ITT CORP SAY THEY HAD VALID BUSINESS REASONS FOR DECLINING TO COVER HOUSES LIKE THESE TWO HOMES A RELUCTANCE TO WRITE POLICIES IN AN AREA WHERE YOU KNOW YOU'RE GOING TO HAVE LOSSES IS PRUDENT BUSINESS NOT REDLINING SAYS SONJA LARKINTHORNE A VICE PRESIDENT OF ITT HARTFORD BUT ETTA MCKINSEY A STATE FARM FIRE & CASUALTY CO OFFICIAL IN KANSAS CITY SAYS THERE'S A MINDSET THAT SOME OF US IN THE INDUSTRY ARE GUILTY OF THEY AUTOMATICALLY ASSUME THAT IF IT'S INNER CITY THEN IT'S HIGH CRIME PERILS OF UNINSURED WHATEVER THE REASONS CYNTHIA CANADY A KANSAS CITY RESIDENT CAN ATTEST TO THE PERILS OF BEING UNINSURED HER FIVEYEAROLD POLICY WITH FARM BUREAU TOWN & COUNTRY INSURANCE CO OF MISSOURI WAS CANCELED EFFECTIVE NOV 1 1991 THE FIRM NOTED THAT THE HOUSE WAS IN A HIGHRISK AREA OF KANSAS CITY AND THAT FARM BUREAU DIDN'T HAVE A PICTURE OF THE HOUSE ON NOV 5 A FIRE BROKE OUT CAUSING 18000 DAMAGE TO THE INSIDE OF THE HOUSE AND CONTENTS UNCOVERED MRS CANADY HAD TO SCRAPE TOGETHER THE MONEY TO PAY FOR REPAIRS HERSELF ANTHONY YONKMAN THE FIRM'S UNDERWRITING DIRECTOR SAYS THE LETTER WAS WRONG WHEN IT CITED THE HIGHRISK AREA AS A REASON FOR THE CANCELLATION HE EXPLAINS THAT ONE AGENT FAILED TO GET PICTURES OF THE HOUSE AND ANOTHER AGENT WHO TOOK OVER DIDN'T WANT TO INSURE IT BECAUSE HE DIDN'T WANT TO DRIVE 30 MILES TO INSPECT IT MEANWHILE THE MISSOURI INSURANCE DEPARTMENT HAS TAKEN ENFORCEMENT ACTION AGAINST FARM BUREAU CHARGING THAT THE FIRM ILLEGALLY REFUSES TO SELL HOMEOWNER INSURANCE IN ST LOUIS IN THE FACE OF 17 YEARS OF STATE URGINGS THE DEPARTMENT'S EXAMINERS LAST YEAR FOUND A MAP IN A FARM BUREAU UNDERWRITING MANUAL WITH THE ENTIRE CITY OUTLINED IN YELLOW AND LABELED INELEGIBLE SIC PROPERTY FARM BUREAU SEEKS A COURT JUDGMENT THAT EXCLUDING ST LOUIS IS LEGAL BECAUSE IT IS MAINLY A RURAL COMPANY A CLAIM THE STATE COUNTERS WITH EVIDENCE OF GROWING URBAN OPERATIONS HERE IN KANSAS CITY A FIVEYEAR STUDY BY THE INSURANCE DEPARTMENT SHOWED THAT 59 OF THE POLICIES SOLD IN POSTAL ZIP CODE AREAS WITH MOSTLY LOWINCOME MINORITY RESIDENTS OFFER ONLY LIMITED COVERAGE ANNETTE MOORE ANOTHER RESIDENT OF KANSAS CITY FOUND THAT AFTER A SMALL FIRE FIVE YEARS AGO SHE WAS ONLY ABLE TO GET A POLICY THAT EXCLUDES LIABILITY AND DOESN'T COVER PARTIAL FIRE DAMAGE IF MY HOUSE PARTLY BURNS DOWN I GET NOT A DIME AND IF SOMEONE FALLS DOWN THE STEPS HERE OR ANYTHING WE'RE DOOMED SHE SAYS IN LOWINCOME NEIGHBORHOODS MAINLY POPULATED BY WHITES ONLY 42 OF THE POLICIES CARRIED SUCH LIMITS ACCORDING TO THE STATE STUDY INSURERS NOTE THAT PEOPLE WHO DON'T QUALIFY FOR REGULAR POLICIES CAN USUALLY BUY A POLICY IN SOCALLED FAIR PLANS INDUSTRY POOLS FOR HIGHRISK INSURANCE THAT MANY STATES REQUIRE THE COMPANIES TO FUND BUT THESE POLICIES ARE SHARPLY LIMITED IN COVERAGE AND USUALLY COST THREE TO FOUR TIMES MORE THAN ORDINARY POLICIES THE KANSAS CITY STUDY ALSO CASTS DOUBT ON THE INSURANCE INDUSTRY'S EXPLANATION THAT MINORITY AREAS USUALLY CREATE HEAVIER INSURANCE LOSSES ACCORDING TO THE DEPARTMENT STUDY CLAIMS PAID TO MINORITY POLICYHOLDERS AMOUNTED TO 45 OF THE PREMIUMS THOSE POLICYHOLDERS PAID IN COMPARED WITH 72 FOR WHITE POLICYHOLDERS A SIMILAR STUDY OF LIMITED POLICIES IN ST LOUIS SHOWED EVEN WIDER GAPS ANALYSES IN CHICAGO AND MILWAUKEE ALSO SHOW THAT RACE IS A DETERMINING FACTOR IN WHETHER APPLICANTS GET HOME INSURANCE SAYS GREGORY SQUIRES AN URBANSTUDIES EXPERT AT THE UNIVERSITY OF WISCONSIN AT MILWAUKEE MR SQUIRES CITES A 1988 DIRECTIVE BY A SALES MANAGER WITH AMERICAN FAMILY INSURANCE MUTUAL CO TO AGENTS WITH THE FIRM THAT SAID IN PART I THINK YOU WRITE TOO MANY BLACKS YOU GOTTA SELL GOOD SOLID PREMIUMPAYING WHITE PEOPLE A LAWYER WITH AMERICAN FAMILY SAYS THE OFFICIAL WAS REMOVED FROM HIS MANAGEMENT JOB AFTER WRITING THE MEMO BUT KEPT ON AS AN AGENT THE COMPANY ALSO SAYS THE MEMO WAS WRITTEN WITHOUT THE COMPANY'S KNOWLEDGE AND THAT IT INVOLVED LIFE INSURANCE NOT HOMEOWNERS' POLICIES THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE IS SUING AMERICAN FAMILY ALLEGING REDLINING IN MILWAUKEE THE COMPANY SAYS IT DOES NOT DISCRIMINATE ON THE BASIS OF RACE AND INSISTS THAT IT SELLS FAR MORE INSURANCE IN MINORITY NEIGHBORHOODS THAN ANYONE ELSE WITH 25 OF THE MARKET IN THOSE AREAS IN A SURVEY OF MAJOR CITIES BY THE ASSOCIATION OF COMMUNITY ORGANIZATIONS FOR REFORM NOW OR ACORN WHEN PEOPLE FROM LOWINCOME NEIGHBORHOODS TELEPHONED AGENTS THEY WERE MUCH MORE LIKELY TO BE REFUSED QUOTES OVER THE PHONE OR TOLD THAT A HOME INSPECTION WAS REQUIRED THE ACORN SURVEY SHOWED THAT KANSAS CITY POLICYHOLDERS IN LOWINCOME OR MINORITY LOCATIONS HERE PAID TWICE AS MUCH IN PREMIUMS AS THOSE IN WHITE OR UPPERINCOME NEIGHBORHOODS RELATIVE TO HOME VALUES THE AVERAGE RATE QUOTED IN LOWINCOME AREAS WAS 1343 PER 1000 OF COVERAGE IN UPPERINCOME AREAS IT WAS 567 PER 1000 9404190124 940419 TOWARD A FREE MARKET IN TELECOMMUNICATIONS IS THE PACE OF TECHNOLOGY MAKING ALL ATTEMPTS AT REGULATION IRRELEVANT ARE WE BETTER OFF WITH THE REGULATORY STRUCTURE WE HAVE TODAY OR DO WE NEED THE LEGISLATION MOVING THROUGH CONGRESS THAT WOULD SUBSTANTIALLY CHANGE GOVERNMENT'S RELATIONS WITH EVERY SECTOR OF THE TELECOMMUNICATIONS BUSINESS THESE ARE ALL COMPLICATED ISSUES BOTH TECHNICALLY AND POLITICALLY THEY CUT ACROSS PARTY AND IDEOLOGICAL LINES IN AN ATTEMPT TO CLARIFY THE DEBATE THE WALL STREET JOURNAL ASKED A RANGE OF INDUSTRY LEADERS AND OUTSIDE ANALYSTS TO OFFER THEIR PERSPECTIVES ON HOW BEST TO ACHIEVE A FREE MARKET IN TELECOMMUNICATIONS COMPETITION IS CRITICAL TO THE CONSTRUCTION OF THE NATIONAL INFORMATION INFRASTRUCTURE A SEAMLESS WEB OF COMMUNICATIONS NETWORKS COMPUTERS DATABASES AND CONSUMER ELECTRONICS THAT WILL PUT VAST AMOUNTS OF INFORMATION AT USERS' FINGERTIPS AS THE NII DEVELOPS PRESIDENT CLINTON AND I BELIEVE STRONGLY THAT WE MUST CHOOSE COMPETITION AND PROTECT IT AGAINST BOTH SUFFOCATING REGULATION ON THE ONE HAND AND UNFETTERED MONOPOLIES ON THE OTHER FOR EXAMPLE CABLE COMPANIES ELECTRIC UTILITIES AND LONGDISTANCE COMPANIES MUST BE FREE TO OFFER TWOWAY COMMUNICATIONS AND LOCAL TELEPHONE SERVICE LEGISLATION MOVING RAPIDLY THROUGH CONGRESS WILL MEET THE CHALLENGE OF INCREASED COMPETITION IN THE TELECOMMUNICATIONS INDUSTRY IT WILL PROVIDE THE FRAMEWORK FOR THE DEVELOPMENT OF THE NII AND FOR THE TREMENDOUS ECONOMIC GROWTH THAT WILL ACCOMPANY THE COMMUNICATIONS REVOLUTION BECAUSE FULL AND PRODUCTIVE PARTICIPATION IN AMERICAN SOCIETY WILL INCREASINGLY DEPEND ON ACCESS TO INFORMATION PRESIDENT CLINTON AND I ARE COMMITTED TO MAKING THE BENEFITS OF THE COMMUNICATIONS REVOLUTION AVAILABLE TO ALL AMERICANS ACROSS ALL SECTORS OF SOCIETY IT IS A PRIORITY FOR THIS ADMINISTRATION THAT EVERY CLASSROOM LIBRARY HOSPITAL AND CLINIC BE CONNECTED TO THE NII BY THE YEAR 2000 IT IS A CRITICAL GOAL WE MUST MEET OUR FUTURE DEPENDS ON IT TECHNOLOGY AND THE MARKETPLACE DO NOT RESPECT REGULATION THAT'S WHY TODAY'S TELECOMMUNICATIONS INDUSTRY IS IN REGULATORY DISARRAY THE LINCHPIN OF FEDERAL TELEPHONE REGULATION THE 1982 CONSENT DECREE THAT BROKE UP THE BELL SYSTEM IN 1984 IS STRANGLING THE LIVELY COMPETITION IT WAS MEANT TO PROTECT IN THE PROCESS THAT DECREE IS STALLING THE DELIVERY OF NEW PRODUCTS TO CONSUMERS AND PROPPING UP THE ARTIFICIALLY HIGH PRICE OF LONGDISTANCE TELEPHONE SERVICE AT THE SAME TIME THE 1984 CABLE ACT STILL BARS TELEPHONE COMPANIES FROM GOING HEADTOHEAD WITH LOCAL CABLE OPERATORS AND OFFERING CUSTOMERS A REAL CHOICE IN HOME VIDEO PROGRAMMING FRANKLY BOTH THE CABLE ACT AND THE CONSENT DECREE ARE ABOUT AS DATED AS A ROTARY PHONE DOES ANYONE REALLY BELIEVE THAT CONSUMERS WOULD BE HURT BY ADDING MORE COMPETITORS TO THE LONGDISTANCE AND LOCAL CABLE MARKETPLACE IN CALIFORNIA AT&T MCI AND SPRINT CHARGE VIRTUALLY IDENTICAL RATES FOR LONGDISTANCE CALLS FROM MAJOR CITIES IS THAT COMPETITION IN ADDITION THEY SET THEIR SIGHTS ON THE STATE'S LARGEST BUSINESS CUSTOMERS THESE CUSTOMERS HAVE THE HIGHEST CALLING VOLUMES PRODUCE THE BEST PROFIT MARGINS AND ALSO SUPPORT LOW RATES ACROSS THE REST OF THE STATE IT'S TIME TO LET THE REGIONAL BELL COMPANIES BECOME FULLSERVICE PROVIDERS OFFERING LOCAL AND LONGDISTANCE SERVICE AS WELL AS INTERACTIVE VIDEO IT'S TIME TO LET CABLE COMPANIES OFFER TELEPHONE SERVICE AND IT'S TIME TO LET LONGDISTANCE COMPANIES INTO THE LOCAL TELEPHONE MARKET BARRY DILLER CHAIRMAN AND CEO QVC INC WE HAVE A VERY CREAKY COMMUNICATIONS POLICY IN THIS COUNTRY ESSENTIALLY A SYSTEM THAT FOLLOWS THE DESIGN OF THE TURNOFTHECENTURY WHEN RAILROADS HAD TO SEEK APPROVAL FOR LINE EXTENSIONS WHAT GOVERNMENT SHOULD DO IS SET A CERTAIN DATE FOR TELECOMMUNICATIONS AND CABLE COMPANIES TO BEGIN THEIR COMPETITION WITH EACH OTHER PERIOD WITHIN THIS COMPETITION ALL ISSUES CERTAINLY INCLUDING CONSUMER PRICING SHOULD BE NATURALLY RESOLVED THE ONLY OVERRIDING ISSUE IS TO BE SURE WE HAVE AT LEAST TWO WIRES INTO EACH HOME INSTEAD WE HAVE A LOT OF EXCRUCIATINGLY COMPLICATED REGULATION THAT CAN ONLY PRODUCE POOR RESULTS NO ONE HAS A CLUE ABOUT WHAT'S GOING TO HAPPEN IN MANY OF THESE BUSINESSES NOT ME NOT REGULATORS NOT LEGISLATORS SO THE SENSIBLE POLICY FOR THE GOVERNMENT IS TO STOP MICROMANAGING EVERYTHING AND LET THE PARTIES CONCENTRATE ON CREATING FULLSERVICE BROADBAND NETWORKS BRIAN L ROBERTS PRESIDENT COMCAST CORP I ATTENDED THE CLINTON/GORE ECONOMIC SUMMIT IN LITTLE ROCK AND THE VICE PRESIDENT'S SUPERHIGHWAY SUMMIT AT UCLA I HEARD THEM SAY THAT TELECOMMUNICATIONS WILL BE A DRIVING FORCE FOR THE AMERICAN ECONOMY IN THE DECADE AHEAD BUT THE ADMINISTRATION IS NOT ADOPTING POLICIES THAT ARE CONSISTENT WITH CREATING AN ADVANCED COMPETITIVE INFRASTRUCTURE FOR INSTANCE I THINK IT WILL BE PROVED THAT THE FEDERAL COMMUNICATIONS COMMISSION'S MICROMANAGEMENT OF CABLE RATES WILL SAP THE INDUSTRY'S INCENTIVE TO INVEST IN NEW TECHNOLOGIES YOU CAN'T DRAIN OFF ONESIXTH OF AN INDUSTRY'S REVENUES AND EXPECT IT TO KEEP MOVING FORWARD AND CREATING JOBS I HOPE THESE NEW RULES WILL BE RETHOUGHT AND SOON ECONOMIC REGULATION HAS TO BE MORE RATIONAL NO ONE CAN EXPLAIN TO ME WHY THE PENDULUM IS SWINGING TOWARD LESS RATE REGULATION OF PHONE COMPANIES WHICH STILL DON'T FACE COMPETITION AND MORE REGULATION OF CABLE COMPANIES WHICH FACE IMMEDIATE COMPETITION FROM DIRECT BROADCAST SATELLITE WIRELESS CABLE AND IMMINENTLY THE PHONE COMPANIES CONGRESS AND THE FCC MUST DEAL WITH THIS DISPARITY IN 1991 THE BRITISH GOVERNMENT OPENED ALL LEVELS OF THE TELECOMMUNICATIONS MARKET TO COMPETITION BY THE MIDDLE OF 1993 UK CABLE COMPANIES WERE PROVIDING TELEPHONE SERVICE FOR 230000 CONSUMERS THE LINES BETWEEN VOICE VIDEO AND DATA ARE DISAPPEARING BELL ATLANTIC HAS THE CAPABILITY TO TRANSPORT COLOR TELEVISION OVER ITS EXISTING NETWORKS TCI HAS THE TECHNOLOGY NEEDED TO PROVIDE FULL TWOWAY TELEPHONE SERVICE OVER A COMBINATION OF EXISTING CABLE PLANT AND WIRELESS ADDONS AT&T COULD READILY EXTEND ITS NETWORK DOWN INTO THE HEART OF NEW YORK NYNEX COULD EASILY BUILD OUTWARD TOWARD NEW JERSEY THE MAIN OBSTACLES TO SUCH COMPETITION ARE LEGAL BELLSOUTH PACTEL AND THE OTHER REGIONAL PHONE COMPANIES AT&T MCI AND OTHER LONGDISTANCE CARRIERS TIME WARNER COX AND OTHER CABLE COMPANIES HUGHES HUBBARD AND OTHER SATELLITE CONCERNS MCCAW GTE AND OTHER CELLULAR CARRIERS ALL SHOULD BE FREED COMPLETELY INSOFAR AS THEY WISH TO INVADE EACH OTHER'S TERRITORIES AND SERVICE SECTORS SOME OF THE BILLS NOW PENDING IN CONGRESS TAKE MODEST STEPS IN THAT DIRECTION NONE GO FAR ENOUGH VICE PRESIDENT GORE DOESN'T HAVE 300 BILLION TO SPEND ON THE INFORMATION SUPERHIGHWAY THESE GUYS DO SET THEM FREE AND THEY WILL WASHINGTON'S DEBATE SOUNDS LIKE A TELEPHONE OR CABLE DEREGULATION GALA UNDOUBTEDLY LAUDABLE BUT WITHOUT THE BELLE OF THE BALL IN ATTENDANCE LEGISLATION THAT DERIVES FROM A FOCUS ON THE CABLE TV AND TELEPHONE INDUSTRIES BUT OVERLOOKS THE COMPUTER INDUSTRY IS LIKE AN ARMS LIMITATION TREATY WITH PARAGUAY THE REAL ISSUE IS CONVERTING OUR AGING ANALOG COMMUNICATIONS INFRASTRUCTURE INTO A MODERN DIGITAL ONE THAT CAN CONNECT COMPUTERS AT THE CURRENT PACE OF ADVANCE THE AMOUNT OF COMPUTING POWER THAT A DOLLAR WILL PURCHASE WILL INCREASE BY AT LEAST A FACTOR OF 1000 OVER THE NEXT DECADE IT IS THIS UNPRECEDENTED RATE OF PROGRESS IN COMPUTING THAT IS DRIVING THE NEED FOR THE INFORMATION SUPERHIGHWAY JUST AS IT IS RESHAPING THE ECONOMY TO BECOME MORE SERVICEORIENTED FRAGMENTED AND COMPETITIVE IF THE KEY ISSUE IS COMPUTERS WHY NOT EMULATE THE MODEL OF THE COMPUTER INDUSTRY TODAY SILICON VALLEY HAS BEATEN BACK THE BEST OF THE JAPANESE COMPETITORS REPELLED THE WEAKER EUROPEANS AND EVEN SURVIVED THE BEST EFFORTS OF OUR OWN GOVERNMENT TO GAIN GLOBAL MARKET SHARE IN THE MOST COMPETITIVE RACE OF THE CENTURY HAVING UNDERGONE MASSIVE RESTRUCTURING AND GAINED VIGOR FROM THE HORDES OF NEW ENTREPRENEURIAL ENTRANTS IT SPAWNED THE COMPUTER INDUSTRY IS NOW DEVELOPING THE TOOLS TO MAKE THE INFORMATION SUPERHIGHWAY USEFUL AND PRODUCTIVE AND IT IS DOING SO WITHOUT ANY FANFARE AND WITHOUT ANY GUIDANCE FROM WASHINGTON IN TELECOMMUNICATIONS DEREGULATING THE TELEPHONE AND CABLE COMPANIES IS A STEP IN THE RIGHT DIRECTION AFTER ALL UNLIKE COMPUTING THE TELECOMMUNICATIONS INDUSTRY IS HARDLY COMPOSED OF THE SURVIVORS OF COMPETITION MORE LIKE THE OFFSPRING OF REGULATORS MUCH OF THE CONTENT OF THE PROPOSED NEW TELECOMMUNICATIONS LEGISLATION IS CONSISTENT WITH COMPUTERINDUSTRY LESSONS CERTAINLY FOSTERING COMPETITION IS ONE CENTRAL MESSAGE YET SEVERAL ASPECTS OF THE DEBATE IN WASHINGTON REMAIN DISTURBING AND NEED TO BE IRONED OUT ONE IS THE LACK OF ATTENTION BEING PAID TO THE PEOPLE WHO BEST UNDERSTAND HOW WE'LL USE THE INFORMATION HIGHWAY THEY OF COURSE ARE IN SILICON VALLEY AND ESPECIALLY IN THE EMERGING CONSUMERCOMPUTING INDUSTRY ANOTHER DISTURBING ASPECT POTENTIALLY A WOLF IN SHEEP'S CLOTHING IS VICE PRESIDENT GORE'S COMMITMENT TO PRESERVING THE PUBLIC'S RIGHT OF WAY ON THE INFORMATION SUPERHIGHWAY REMEMBER THAT UNIVERSAL ACCESS TO COMPUTING IS OCCURRING NOT BECAUSE OF LEGISLATION BUT BECAUSE THE COST OF COMPUTING IS FALLING SO DRAMATICALLY THAT'S THE WAY TO GO IN TELECOM TOO AND FINALLY ANY LEGISLATION NEEDS TO HOLD THE DOOR OPEN TO THE KIND OF NEW ENTRANTS THAT ALLOWED MICROSOFT AND INTEL TO COMPETE AGAINST IBM AND FUJITSU THAT'S ANOTHER VITAL LESSON FROM SILICON VALLEY THAT LAWMAKERS FORGET AT THEIR PERIL STANLEY S HUBBARD CHAIRMAN AND CEO US SATELLITE BROADCASTING CO THERE'S AN EDITORIAL IN THE APRIL 4 ISSUE OF BROADCASTING MAGAZINE THAT POINTS OUT THAT THE HIGHPOWERED DIRECT BROADCAST SATELLITE OPERATION OUR COMPANY IS INVOLVED IN WILL START AT THE END OF MAY THE EDITORIAL SAYS WE COULD REVOLUTIONIZE ALL OF ELECTRONIC COMMUNICATIONS WITH OUR WIRELESS APPROACH THIS APPROACH COULD SWEEP THE COUNTRY AND MAKE REGULATION KIND OF MEANINGLESS IF THE MARKETPLACE DECIDES THAT PEOPLE WANT TO PICK UP 150 CHANNELS WITH A PIZZAPIE SIZED DISH RATHER THAN PAY A LOT OF MONEY FOR FIBER OPTICS IT COULD HAVE A PROFOUND IMPACT ON WHAT'S GOING ON IN WASHINGTON THE BEST METHOD TO ACHIEVE A FREE MARKET IN TELECOM IS NOT TO GIVE TELEPHONE COMPANIES THE AUTHORITY TO GET INTO THE TV BUSINESS TELEPHONE COMPANIES ENJOY MONOPOLY STATUS IF TELEPHONE COMPANIES ARE ALLOWED TO USE THEIR MONOPOLY STATUS TO GET INTO TV THERE'LL BE NO COMPETITION THEY'LL EAT IT ALL UP HOW IS ANY PRIVATE COMPANY GOING TO COMPETE WITH PHONE COMPANIES IN THE CABLE BUSINESS THEY HAVE CAPTIVE CUSTOMERS AND THE ABILITY TO GET 50 OR 100YEAR LOANS THE CURRENT REGULATORY STRUCTURE IS FOR THE MOST PART ACCEPTABLE THERE'S NO QUESTION THAT REPS EDWARD MARKEY AND JOHN DINGELL AND ALL THE REST IN CONGRESS ARE VERY WELLMEANING AND HAVE THE BEST INTERESTS OF THE COUNTRY AT HEART BUT THERE'S A CHANCE THAT WHAT THEY'RE DOING COULD BACKFIRE IF MONOPOLIES ARE LET LOOSE IT'LL BE PRETTY HARD TO STOP THEM THE INFORMATION SUPERHIGHWAY CONCEPT IS LESS A BLUEPRINT AND MORE AN INKBLOT TEST INTO WHICH EVERY INTEREST GROUP PROJECTS ITS OWN FANTASIES FOR FUNDING AND POLICY SOONER OR LATER ONE MUST DELIVER THE ADMINISTRATION AFTER MORE THAN A YEAR OF TALK HASN'T DELIVERED COMMUNICATION'S 15 MINUTES OF FAME ARE COMING TO AN END AND THE CROWD IS GETTING RESTLESS INSTEAD THE ADMINISTRATION IS DEFERRING TO CONGRESSIONAL BILLS THAT AIM TO MEDIATE BETWEEN CONTENDING INTEREST GROUPS BUT CONGRESS IS NOW ABOUT TO MAKE THINGS WORSE IN RETURN FOR A FEW IMPROVEMENTS IN POLICY WE ARE MORTGAGING THE PROCESS OF REGULATORY CHANGE ITSELF THE BULKY BILLS WILL LEAD TO BUILTIN CONGRESSIONAL MICROMANAGEMENT OF REGULATION IN A DYNAMIC INDUSTRY INSTEAD OF SIMPLIFYING THE ANACHRONISTIC 1934 COMMUINCATIONS ACT CONGRESS SHOULD SET BROAD NATIONAL POLICY GROUND RULES AND LEAVE THE REST TO AN EXPERT AGENCY IT CAN RESPECT LET'S DEAL WITH PROBLEMS AS THEY ARISE CHARLES R LEE CHAIRMAN AND CEO GTE CORP THE ACCELERATING PACE OF TECHNOLOGICAL PROGRESS COUPLED WITH INTENSE MARKETPLACE DEMAND FOR NEW PRODUCTS AND SERVICES HAS OVERWHELMED THE LEGISLATIVE AND REGULATORY FRAMEWORK IN WHICH OUR INDUSTRY OPERATES AS A RESULT A CHASM HAS DEVELOPED BETWEEN ANTIQUATED POLICIES AND EVOLVING BUSINESS REALITY DRIVEN BY TECHNOLOGY THAT CHASM IS WIDENING EVERY DAY THE RELATIVE ABSENCE OF REGULATORY BARRIERS FOR SOME PLAYERS IN THE TELECOMMUNICATIONS INDUSTRY COUPLED WITH THE PRESENCE OF SUCH BARRIERS FOR OTHERS IS CREATING A SITUATION IN WHICH THE GOVERNMENT IS UNINTENTIONALLY CREATING AN UNEVEN PLAYING FIELD THIS PHENOMENON IN EFFECT RESULTS IN THE CREATION OF WINNERS AND LOSERS WITHOUT REGARD TO PERFORMANCE OR CAPABILITY WE IN THE INDUSTRY MUST DO A BETTER JOB OF DEMONSTRATING TO THE REGULATORS AND CONGRESS WHAT IS SO OBVIOUS TO US THAT TECHNOLOGY AND FLEXIBILITY NOT INCUMBENCY ARE DRIVING THE MARKETPLACE POLICY MAKERS SUPPORTING THE BABY BELLS' BID TO ENTER LONG DISTANCE HAVE A SHORT MEMORY FOR THE ANTICOMPETITIVE ABUSES THAT OCCURRED IN THE DARK DAYS OF THE US TELECOMMUNICATIONS MONOPOLY AS HEAD OF MCI THE COMPANY THAT PIONEERED COMPETITION IN LONG DISTANCE I VIVIDLY RECALL HOW THE BELLS BENT TWISTED AND EVEN BROKE THE LAW TO THWART COMPETITION IT'S HARD TO IMAGINE IN THIS DAY AND AGE BUT THE TELEPHONE COMPANIES WENT SO FAR AS TO RIP OUR LINES OUT OF THEIR CENTRAL OFFICES MAKING IT IMPOSSIBLE FOR OUR CUSTOMERS TO COMPLETE CALLS THIS ANTICOMPETITIVE MINDSET STILL PREVAILS THE BELLS CONTROL NEARLY 100 OF THE 90 BILLION LOCAL SERVICE MARKET AND MOST OF THE 12 BILLION MARKET FOR LOCAL TOLL CALLS THEY'RE BUYING UP CELLULAR AND CABLE PROPERTIES NOW THEY WANT TO ENTER LONG DISTANCE A MARKET FROM WHICH THEY'RE BANNED BY THE ANTITRUST AGREEMENT THAT BROKE UP THE BELL SYSTEM WALKS LIKE A MONOPOLY TALKS LIKE A MONOPOLY MUST BE A MONOPOLY WE MUST KEEP THE BELLS OUT OF THE COMPETITIVE LONGDISTANCE MARKET UNTIL THE LOCAL MONOPOLY EXCHANGES ARE FULLY COMPETITIVE PUBLIC POLICY SO FAR HAS ENCOURAGED COMPETITION SINCE THE BREAKUP OF THE OLD BELL SYSTEM 10 YEARS AGO LONGDISTANCE PRICES HAVE DROPPED MORE THAN 60 IN REAL TERMS DRIVEN BY COMPETITION NEW TECHNOLOGY AND SERVICES HAVE COME INTO THE MARKET WITH UNPRECEDENTED SPEED BUT THE TREND TOWARD MORE COMPETITION COULD BE THROWN INTO REVERSE IF CONGRESS PASSES LEGISLATION THAT WOULD BRING THE REGIONAL BELL HOLDING COMPANIES INTO THE LONG DISTANCE MARKET WHILE THEY RETAIN THEIR CONTROL OVER THE LOCAL NETWORKS THAT LONGDISTANCE COMPANIES MUST USE TO REACH THEIR OWN CUSTOMERS TWO ISSUES RELEVANT TO THE CURRENT TELECOMMUNICATIONS LEGISLATION IN CONGRESS ARE CONSISTENTLY DISCUSSED IN TERMS OF FACTOIDS AND HYPERBOLE RATHER THAN SOLID ECONOMIC ANALYSIS THE FIRST IS THE EXTENT OF COMPETITION IN LOCAL TELEPHONY MUCH OF THE REGULATION OF THE REGIONAL BELL OPERATING COMPANIES AND OTHER LOCAL EXCHANGE CARRIERS PRESUMES THAT THESE FIRMS CONTINUE TO BE MONOPOLISTS IN THEIR MARKETS BUT THE QUESTION IS NOT WHAT IS THE PERCENTAGE OF LOCAL CALLS THAT PASS THROUGH THE EXCHANGE OF THE INCUMBENT FIRM RATHER IT IS WHAT PERCENTAGE OF THE INCUMBENT'S CUSTOMERS ARE MAKING A POSITIVE CONTRIBUTION TO THE INCUMBENT'S FINANCIAL SOLVENCY IT IS EASY TO HAVE 99 OF THE MARKET WHEN STATE REGULATORS REQUIRE YOU TO PROVIDE SERVICE BELOW COST HOWEVER IT IS NOT EASY TO REMAIN SOLVENT MUCH LESS ACT LIKE A RAPACIOUS MONOPOLIST IF THE 20 OF YOUR CUSTOMERS WHO PROVIDE 80 OF YOUR PROFIT ARE BEING SKIMMED BY COMPETITORS SECOND HOW COMPETITIVE IS THE LONGDISTANCE MARKET DESPITE THE BARRAGE OF TELEVISION ADS FROM AT&T MCI AND SPRINT SUGGESTING THAT COMPETITION IS FIERCE THE PRICES OF LONGDISTANCE SERVICES HAVE FALLEN MORE SLOWLY THAN THEIR COSTS SINCE THE BREAKUP OF THE BELL SYSTEM MOREOVER THOSE COSTS ARE MAINLY ACCESS CHARGES TO LOCAL TELEPHONE COMPANIES TO COMPLETE CALLS CHARGES WHICH THE FCC FORCES DOWN OVER TIME THE DEBATE OVER WHETHER THE REGIONAL BELL OPERATING COMPANIES SHOULD BE ALLOWED TO ENTER THE LONGDISTANCE MARKET HAS PRESUMED THAT THIS MARKET IS ALREADY FUNCTIONING COMPETITIVELY SO WHY BOTHER LETTING IN MORE FIRMS MUCH CLOSER SCRUTINY OF THIS ASSUMPTION IS WARRANTED THERE IS ALMOST UNIVERSAL AGREEMENT BOTH ON THE IMPORTANCE OF THE REVOLUTION IN TELECOMMUNICATIONS THAT IS NOW UNDER WAY AND ON THE CENTRAL ROLE OF THE PRIVATE SECTOR IN BRINGING IT ABOUT UNFORTUNATELY IN THE CASE OF GOVERNMENT OLD HABITS DIE HARD DESPITE A RHETORICAL COMMITMENT TO FOSTERING INNOVATION AND COMPETITION THE GOVERNMENT HAS PURSUED A COURSE OF HEAVYHANDED REGULATION THAT SUBVERTS THE VERY CHANGES IT CLAIMS TO SUPPORT AT PRESENT CONGRESS IS CONSIDERING A NUMBER OF BILLS THAT BREAK WITH THE OLD REGULATORY HABITS IF APPROVED THESE BILLS COULD BEGIN TO REPLACE THE INEFFICIENT COUNTERPRODUCTIVE MODELS OF BUREAUCRATIC INTERVENTION WITH FREEMARKET FORCES THAT WILL SUPPORT INNOVATION GENERATE NEW JOBS AND SPUR THE DEVELOPMENT AND EXPORT OF AMERICAN TECHNOLOGY THE MONOPOLY ON LOCAL SERVICE HELD TODAY BY THE REGIONAL BELL OPERATING COMPANIES OR RBOCS IS EVERY BIT AS TIGHT AS THE MONOPOLY HELD BY AT&T BEFORE THE BELL BREAKUP LEGISLATING AWAY THE ANTITRUST PROTECTIONS OF THE MODIFIED FINAL JUDGMENT WHICH I NEGOTIATED ON BEHALF OF THE REAGAN ADMINISTRATION WHILE THE RBOCS HOLD THIS MONOPOLY WOULD BE A SETBACK TO COMPETITION IN LONG DISTANCE AND INDEED IN A LARGE NUMBER OF OTHER INFORMATION SERVICES DEPENDENT UPON ACCESS TO THE LOCAL SWITCH RESTORATION OF THE TWOLEVEL MONOPOLY WOULD JEOPARDIZE THE INTRODUCTION OF ADVANCE INFORMATION SERVICES JUST WHEN THEY ARE NEEDED MOST MY WISH THAT ANY NEW LEGISLATION INCORPORATE THE SAFEGUARDS OF THE MODIFIED FINAL JUDGMENT IS NOT BASED ON NOSTALGIA OR PRIDE OF AUTHORSHIP IT IS BASED ON FACTS THE LOCAL TELEPHONE NETWORK MONOPOLY IS THE TOLLGATE THROUGH WHICH 99 OF AMERICA'S LONGDISTANCE TRAFFIC STILL MUST PASS IT'S TRUE THAT NEW TECHNOLOGY EXISTS TODAY THAT ALLOWS BIG BUSINESS CUSTOMERS TO BYPASS THE LOCAL NETWORKS BUT THAT 1 OF THE TOTAL MARKET DOESN'T ADD UP TO COMPETITION MORE THAN 95 OF WIRELESS CALLS ARE DEPENDENT ON AT LEAST ONE LOCAL NETWORK EITHER AT THE CALLING OR THE RECEIVING END THERE ARE NO COST OR TECHNOLOGY CHANGES ON THE HORIZON THAT PROMISE TO ALTER THESE BASIC RELATIONSHIPS OF DEPENDENCE AND MONOPOLY AS LONG AS THE RBOCS CAN HOPE TO ENTER THE LONGDISTANCE MARKET AND STILL RETAIN THEIR RESPECTIVE MONOPOLIES ON LOCAL SERVICE THEY HAVE LITTLE INCENTIVE TO INTRODUCE NEW TECHNOLOGY INTO THE LOCAL NETWORKS THAT WOULD HELP LONGDISTANCE COMPANIES PROVIDE ADVANCED INFORMATION SERVICES TO THEIR CUSTOMERS IN FACT THEY HAVE A POWERFUL INCENTIVE TO DELAY AND AWAIT SOME CLEAR OUTCOME OF THE CURRENT POLITICAL WARS AT THE SAME TIME THE RBOCS' RESIDENTIAL CUSTOMERS MAY BE FORCED TO PAY HIGHER RATES TO SUBSIDIZE THE ADVENTURES OF THE BELLS IN UNREGULATED MARKETS THAT'S A CLEAR AND PRESENT DANGER WHENEVER ONE CORPORATION IS IN BOTH REGULATED AND UNREGULATED BUSINESSES AS I SEE IT CONGRESS HAS BUT ONE COURSE THAT WILL AVOID SUCH ABUSES AND EXPEDITE THE BENEFITS OF ADVANCED INFORMATION TECHNOLOGY IT SHOULD PASS LEGISLATION THAT INCORPORATES THE COMPETITIVE SAFEGUARDS OF THE MODIFIED FINAL JUDGMENT INCLUDING THE PROHIBITION AGAINST RBOCS ENTERING THE LONGDISTANCE MARKET WE SHOULD NOT FALL INTO THE TRAP OF THINKING THAT JUST BECAUSE LOCAL COMPETITION IS IMAGINABLE IT'S ALREADY HERE IT'S NOT 9404190123 940419 LEISURE & ARTS TOP 10 SINGLES / ALBUMS CONSTRUCTED BY BILLBOARD MAGAZINE FROM DATA PROVIDED BY BROADCAST DATA SYSTEMS AND SOUNDSCAN INC AND BASED ON A NATIONAL SAMPLE OF RETAIL REPORTS AND RADIO PLAY LISTS 9404190122 940419 WHO'S NEWS NEW YORK STOCK EXCHANGE NEW YORK STOCK EXCHANGE NEW YORK ROBERT T ZITO A FORMER MANAGING DIRECTOR AT THE BIG BOARD HAS REJOINED THE EXCHANGE AS SENIOR VICE PRESIDENT COMMUNICATIONS EFFECTIVE MAY 2 MR ZITO 40 YEARS OLD SUCCEEDS JOHN LAWRENCE 60 WHO LEFT IN OCTOBER TO TAKE A COMMUNICATIONS POSITION AT CAPITAL GROUP MR ZITO HAS BEEN VICE PRESIDENT COMMUNICATIONS FOR SONY CORP OF AMERICA A UNIT OF JAPAN'S SONY CORP SINCE APRIL 1991 FROM 1988 TO 1990 MR ZITO WAS THE EXCHANGE'S MANAGING DIRECTOR OF ADVERTISING AND COMMUNICATION SERVICES AND LEFT IN 1990 TO JOIN SONY AS DIRECTOR PUBLIC AFFAIRS 9404190121 940419 TECHNOLOGY & HEALTH MCI TO PROVIDE FAX AND OTHER SERVICES TO USERS OF INTERNET NEW YORK MCI COMMUNICATIONS CORP JUMPED ABOARD THE BANDWAGON OF BUSINESSES LOOKING TO PROFIT FROM THE INTERNET SAYING IT WILL PROVIDE SERVICES SUCH AS FAXING TO USERS OF THE WORLDWIDE COMPUTER NETWORK MCI SAID THE INTERNET'S 20 MILLION USERS WILL BE ABLE TO WRITE ELECTRONICMAIL MESSAGES THAT THE COMPANY WILL CONVERT INTO A FAX TELEX OR EVEN A HARD COPY DELIVERED BY US MAIL CALLED SNAIL MAIL IN INTERNET PARLANCE FOR AN ADDITIONAL ANNUAL FEE OF ABOUT 30 INTERNET USERS CAN EVEN HAVE EMAIL PRINTED ON THEIR LETTERHEAD WITH THEIR SIGNATURES AFFIXED THE FAX SERVICE WHICH THE LONGDISTANCE COMPANY HOPES TO BEGIN BY JUNE WILL COST 80 CENTS FOR THE FIRST PAGE AND 30 CENTS FOR EACH ADDITIONAL HALFPAGE SENT IN THE US PRICES VARY WIDELY FOR TELEXES BUT CONVERTING EMAIL TO SNAIL MAIL COSTS A STEEP 2 FOR THE FIRST THREE PAGES AND A DOLLAR FOR EACH ADDITIONAL PAGE FOR THOSE FIXING TO FAX SERVICES HAVE BEEN SPROUTING UP ON THE INTERNET THE INTERNET MULTICASTING SERVICE IN WASHINGTON DC HAS ORGANIZED FREE FAXING OVER THE INTERNET WHICH SERVES MANY REGIONS OF THE WORLD INTERFAX A COMPANY IN SKIPPACK PA CAN SEND THE FIRST FIVE PAGES OF FAXES ANYWHERE FOR 5 A MONTH AND A 25 STARTUP FEE ADDITIONAL PAGES COST 50 CENTS APIECE FAXINET WILL DO THE SAME FOR 75 CENTS A PAGE AND A 20 SIGNUP CHARGE THE BOSTON COMPANY SAYS IT CAN CONVERT FAXES TO EMAIL AS WELL 9404190120 940419 MANNESMANN UNIT GETS CONTRACT DUESSELDORF GERMAN INDUSTRIAL GROUP MANNESMANN AG SAID ITS MANNESMANN DEMAG AG UNIT WON A CONTRACT VALUED AT 360 MILLION TO BUILD A FLATROLLED STEEL MINIMILL IN SASKATCHEWAN CANADA THE CONTRACT WAS AWARDED BY CANADA'S IPSCO INC TO MANNESMANN DEMAG'S USBASED MANNESMANN DEMAG CORP SUBSIDIARY IT INCLUDES PLANNING DELIVERY AND ASSEMBLY OF ALL PLANT BUILDINGS AND PROCESSING COMPONENTS PLUS PLANT STARTUP THE PLANT WILL HAVE A CAPACITY OF 910000 METRIC TONS ANNUALLY AND IS SCHEDULED TO GO ON LINE IN 1996 9404190119 940419 BUSINESS BRIEF UNITED TECHNOLOGIES' EARNINGS JUMPED 66 IN THE FIRST QUARTER UNITED TECHNOLOGIES CORP'S FIRSTQUARTER PROFIT ROSE 66 TO 106 MILLION HELPED BY SIGNIFICANT IMPROVEMENTS IN THE COMPANY'S AIRCRAFTENGINE BUSINESS NET INCOME OF 73 CENTS A SHARE WAS SLIGHTLY ABOVE WALL STREET ANALYSTS' CONSENSUS ESTIMATE OF 70 CENTS A SHARE A NUMBER COMPILED BY ZACKS INVESTMENT RESEARCH IN THE YEARBEFORE PERIOD THE COMPANY EARNED 64 MILLION OR 43 CENTS A SHARE REVENUE WAS 484 BILLION ABOUT THE SAME AS THE YEAREARLIER 486 BILLION UNITED TECHNOLOGIES BASED IN HARTFORD CONN MANUFACTURES JET ENGINES AUTOMOTIVE PARTS AND HEATING AND AIRCONDITIONING SYSTEMS THE COMPANY'S PRATT & WHITNEY JET ENGINE UNIT HAD OPERATING EARNINGS OF 84 MILLION WELL ABOVE THE SEVERELY DEPRESSED 24 MILLION IN THE FIRST QUARTER OF 1993 THE UNIT'S REVENUE SLIPPED TO 136 BILLION FROM 148 BILLION A YEAR EARLIER PRATT & WHITNEY HAS UNDERGONE AN EXTENSIVE RESTRUCTURING OF ITS OPERATIONS IN RECENT YEARS AS PART OF THE COMPANY'S OVERALL EFFORTS TO CUT COSTS THE UNIT'S IMPROVED PERFORMANCE ALSO REFLECTS HIGHER COMMERCIALPARTS SALES AND LOWER RESEARCH AND DEVELOPMENT SPENDING THE COMPANY SAID COMMERCIALSPAREPARTS ORDERS IN THE FIRST QUARTER AVERAGED 140 MILLION A MONTH COMPARED WITH A MONTHLY AVERAGE OF 124 MILLION FOR ALL OF LAST YEAR UNITED TECHNOLOGIES' CARRIER UNIT WHICH MAKES AIRCONDITIONING AND HEATING SYSTEMS HAD FIRSTQUARTER OPERATING PROFIT OF 18 MILLION IN THE SEASONALLY LOW FIRST QUARTER COMPARED WITH 8 MILLION THE PREVIOUS YEAR REVENUE ROSE TO 101 BILLION FROM 938 MILLION IN THE 1993 QUARTER THE COMPANY SAID CARRIER'S IMPROVED PERFORMANCE IN NORTH AMERICA AND IN THE ASIAPACIFIC REGION WAS PARTLY OFFSET BY CONTINUED WEAKNESS IN EUROPE THE OTIS UNIT WHICH MAKES ELEVATORS HAD OPERATING EARNINGS OF 97 MILLION UP FROM 3 MILLION REVENUE OF 105 BILLION WAS ABOUT THE SAME AS LAST YEAR'S THE AUTOMOTIVE BUSINESS HELPED BY INCREASED NORTH AMERICAN VEHICLE PRODUCTION POSTED OPERATING PROFIT OF 44 MILLION UP FROM 37 MILLION A YEAR EARLIER 9404190118 940419 EDUCATION COMPANIES TEACH ALL SORTS OF LESSONS WITH EDUCATIONAL TOOLS THEY GIVE AWAY BY SUZANNE ALEXANDER RYAN STAFF REPORTER OF THE WALL STREET JOURNAL AN EXXON CORP VIDEOTAPE CREATED FOR HIGHSCHOOL SCIENCE CLASSES WANTS TO SET THE RECORD STRAIGHT THE EXXON VALDEZ OIL SPILL DID NOT DECIMATE ALASKAN WILDLIFE FISHERMEN HAD A BUMPER CROP OF PINK SALMON JUST TWO YEARS AFTER THE SPILL AND HAD TO GIVE AWAY FISH TO NEEDY PEOPLE IN THE FORMER SOVIET UNION THE VIDEOTAPE IS PART OF A NEW WAVE OF CORPORATE VIDEOS COMING INTO CLASSROOMS NATIONWIDE SOME COMPANIES LIKE EXXON USE THE VIDEOTAPES TO CLEAN UP THEIR ENVIRONMENTAL IMAGE AMONG YOUTH OTHERS OFFER VIDEOS AND PROMOTIONAL MATERIAL THAT COMBINE ADVERTISING WITH EDUCATIONAL CONTENT DESPITE CRITICS' COMPLAINTS THAT THE VIDEOS AND OTHER SCHOOL MATERIALS ARE ONESIDED SCHOOLS' USE OF THEM IS GROWING PARTLY TO COMPENSATE FOR SHORTAGES OF INSTRUCTIONAL MATERIALS CAMPBELL SOUP CO OF CAMDEN NJ MAILED TO 90000 SCHOOLS LAST FALL THE PREGO SCIENCE CHALLENGE AN INSTRUCTIONAL KIT IN WHICH SCIENCE STUDENTS CAN CONDUCT EXPERIMENTS TO SEE WHETHER PREGO SPAGHETTI SAUCE IS THICKER THAN RAGU OLD STYLE SPAGHETTI SAUCE WE THOUGHT STUDENTS WOULD BE INTERESTED IN CONNECTING SCIENCE TO THE REAL WORLD SAYS A CAMPBELL SPOKESWOMAN TO HELP LAUNCH ITS FRUIT GUSHERS SNACK THREE YEARS AGO GENERAL MILLS INC CREATED GUSHERS WONDERS OF THE EARTH A KIT THAT INCLUDED FREE SAMPLES THE LESSON PLAN ENCOURAGED KIDS TO PLACE THE FRUIT SNACK IN THEIR MOUTH BITE DOWN AND THEN MAKE COMPARISONS BETWEEN THE FRUIT GUSH AND NATURAL ERUPTIONS THE GUSHER ACTIVITY WAS ONLY ONE IN A SIXPAGE LESSON PLAN ON VOLCANOES HOT MINERAL SPRINGS AND OIL GUSHERS SAYS PAM BECKER A GENERAL MILLS SPOKESWOMAN MODERN TALKING PICTURE SERVICE INC A VIDEO DISTRIBUTOR BASED IN ST PETERSBURG FLA SAYS 64000 OF THE 110000 PUBLIC AND PRIVATE SCHOOLS IN THE US HAVE SHOWN AT LEAST ONE OF ITS 3600 TITLES FROM 120 CORPORATIONS TO STUDENTS OVER THE PAST YEAR AND A HALF SOME COMPANIES INCLUDING POTOMAC EDISON CO HAVE PRODUCED MORE THAN 125 SEPARATE TITLES FOR MODERN TEACHERS SAY THEY USE THE FILMS WHEN THEY HAVE LITTLE ELSE LAURIE BJORLYKKE A THIRDGRADE TEACHER AT RACHEL CARSON ELEMENTARY SCHOOL IN GAITHERSBURG MD SAYS SHE HAS NO TEXTBOOKS FOR HER HISTORY AND SCIENCE CLASSES SHE SAYS SHE SHOWS TWO CORPORATE TAPES A MONTH TO SUPPLEMENT HER RESOURCES TEACHERS RECEIVE MODERN TALKING PICTURE CATALOGS AT THEIR SCHOOLS AND CAN ORDER TAPES FREE OF CHARGE BY CALLING AN 800 NUMBER THERE IS A CAVEAT TEACHERS MUST FILL OUT REPORTS ON THE NUMBER OF STUDENTS WHO WATCH THE FILMS THE COMPANIES ARE BUILDING UP A LOYAL BASE OF FUTURE CUSTOMERS SAYS A MODERN SPOKESWOMAN THE VIDEOS PROPONENTS SAY BALANCE WHAT IS PERCEIVED BY SOME EDUCATORS AS A BIASED RENDITION OF THE RELATIONSHIP BETWEEN ENVIRONMENTAL CONCERNS AND ENTERPRISE TYPICAL VIDEOS FEATURE INTERVIEWS WITH SCIENTISTS ACADEMICS AND OTHER EXPERTS AND LOOK AND FEEL LIKE DOCUMENTARIES A MONSANTO CO VIDEO SUGGESTS THE WORLD CAN'T BE FED SAFELY WITHOUT USING PESTICIDES ON FARMLAND AND A UNION CARBIDE CORP TAPE SAYS CHEMICALS ADD COMFORT TO OUR WORLD ENVIRONMENTAL GROUPS HAVE BEEN USING SCHOOLS FOR SOME TIME TO GET THEIR MESSAGES BEFORE YOUNG PEOPLE SAYS DAN HOLMAN A SPOKESMAN FOR MONSANTO BASED IN ST LOUIS WE ALSO HAVE A POINT THAT DESERVES TO BE HEARD INDEED THE NATIONAL WILDLIFE FEDERATION A NONPROFIT GROUP BASED IN WASHINGTON DC HAS MAILED FREE WILDLIFE WEEK KITS TO THOUSANDS OF SCHOOLS SINCE THE 1970S THE KITS WHICH CENTER ON DIFFERENT THEMES EACH YEAR PROVIDE SEVEN DAYS OF LESSON PLANS AND ACTIVITIES SOME ENVIRONMENTALISTS SAY SOME OF THE CORPORATE TAPES MISLEAD STUDENTS BY OMITTING IMPORTANT FACTS WHEN EXXON SAYS THERE WAS A BUMPER CROP OF SALMON YES THAT'S TRUE BUT WHAT THEY DON'T BOTHER TO TELL YOU IS THAT SINCE THAT PARTICULAR YEAR THERE HAS BEEN A STEADY DECLINE OF CATCHES IN PRINCE WILLIAM SOUND SAYS GARY SHIGENAKA A MARINE BIOLOGIST WHO IS MONITORING THE VALDEZ CLEANUP FOR THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION WHEN YOU LOOK AT THESE VIDEOS YOU CAN SEE THEY'RE CLEARLY DONE FOR PUBLIC RELATIONS AND BRANDRECOGNITION REASONS SAYS MARIANNE MANILOV CODIRECTOR OF UNPLUG A NONPROFIT GROUP IN OAKLAND CALIF THAT PROMOTES COMMERCIALFREE EDUCATION IF THEY WANT TO HELP EDUCATION WHY DON'T THEY GIVE MONEY TO BUILD SCHOOLS INSTEAD NOT EVERY CORPORATE TAPE IS BLATANTLY COMMERCIAL AND MANY COMPANIES HAVE OFFERED EDUCATIONAL MATERIALS TO SCHOOLS FOR YEARS BUT SCHOOL ADMINISTRATORS REPORT THAT IN THE PAST FEW YEARS AS EDUCATION BUDGETS HAVE BEEN CUT AND MORE SCHOOLS HAVE NEEDED CORPORATE HELP IN FILLING GAPS MANY COMPANIES HAVE BECOME BOLDER WITH PROMOTIONS AND USE OF BRAND NAMES THE TREND MAY HAVE ALSO BEEN AIDED BY THE SUCCESS OF WHITTLE COMMUNICATIONS LP'S CHANNEL ONE AN ADVERTISINGSUPPORTED NEWS PROGRAM FOR SCHOOLS WHICH STARTED IN 1990 DOW JONES & CO PUBLISHER OF THIS NEWSPAPER REACHES 3000 SCHOOLS WITH ITS WALL STREET JOURNAL CLASSROOM EDITION THE MONTHLY NEWSPAPERS INCLUDE ADVERTISING AND COST 150 A YEAR CORPORATE VIDEO OFFERINGS NOW RANGE FROM PROCTER & GAMBLE CO'S SPARKLES' SPACE ADVENTURE WHICH TEACHES VIEWERS THEIR TEETH CAN SPARKLE IF THEY BRUSH THEM WITH CREST TOOTHPASTE TO SUNMAID RAISINS THE WORLD'S FAVORITE FROM THE SUNMAID GROWERS OF CALIFORNIA WHICH INFORMS KIDS THAT NOTHING TOUCHES THESE RAISINS BUT THE SUN THE AMAZING ORANGE BY TROPICANA PRODUCTS INC TELLS THE INTERESTING STORY OF GETTING FRUIT FROM THE GROVE TO YOUR TABLE SAYS TERRI MCNORTON A TROPICANA SPOKESPERSON WE'RE VERY PROUD OF OUR SUPPORT OF EDUCATION CRITICS DECRY THE MELDING OF MARKETING AND EDUCATION I THINK COMPANIES REALIZE THAT IT'S EASY TO FLOW INTO THE CLASSROOM UNCENSORED SAYS FRED CROUCH A CURRICULUM SPECIALIST AT FORESTVILLE HIGH SCHOOL IN CAPITAL HEIGHTS MD AMERICAN TELEPHONE & TELEGRAPH SENT OUT MATERIALS TO SCHOOLS LAST YEAR THAT INCLUDED SUCH ACTIVITIES AS HAVING STUDENTS ROLEPLAY TELEPHONE CALLS WITH THEIR PARENTS EACH PACKAGE ALSO INCLUDED APPLICATIONS FOR AT&T CALLING CARDS MR CROUCH THREW IT ALL AWAY I'VE NEVER SEEN ANYTHING LIKE IT IT WAS OUTRAGEOUS HE SAYS JON MELLOR AN AT&T SPOKESMAN SAYS THE MATERIAL WASN'T MEANT TO BE EDUCATIONAL IN THE TRADITIONAL SENSE WE THINK WE'RE DOING STUDENTS A FAVOR BECAUSE THEY'RE GOING TO HAVE TO MAKE A DECISION IN SCHOOL ON HOW THEY WILL CALL HOME HE SAYS YOU CAN'T QUIBBLE WITH THE FACT THAT THE AT&T CALLING CARD IS A COSTEFFECTIVE WAY TO KEEP IN TOUCH WITH FAMILY WHY NOT GIVE THEM THE INFORMATION SOME TEACHERS ARE USING THE CORPORATE TAPES TO EDUCATE STUDENTS ABOUT PROPAGANDA ROBERT PAULIS A SCIENCE TEACHER AT GRAND VALLEY HIGH SCHOOL IN PARACHUTE COLO SHOWED HIS STUDENTS EXXON'S TAPE ON THE OIL SPILL THEN HE RAN AN OILSPILL VIDEO BY A WILDLIFE ADVOCACY GROUP BASICALLY BOTH SIDES TOLD YOU WHAT THEY WANTED YOU TO KNOW SAYS JOHN RYBAK AN 11TH GRADER AT GRAND VALLEY HIGH THEY ASSUMED EVERYONE WOULD BE STUPID AND NOT QUESTION WHAT THEY SAID I LEARNED YOU HAVE TO STOP AND QUESTION HOW MUCH OF ANYTHING IS TRUE 9404190117 940419 BUSINESS BRIEFS TAYLOR DEVICES INC RECEIVED A 205 MILLION US ARMY CONTRACT FOR ADAPTIVE SUSPENSION STRUTS TO BE USED ON TRACKED MILITARY VEHICLES SAGE TECHNOLOGIES INC STAMFORD CONN RECEIVED A 40 MILLION CONTRACT TO PROVIDE PERSONAL COMPUTERS TO THE FEDERAL GOVERNMENT WESTINGHOUSE ELECTRIC CORP'S EUROPEAN SUBSIDIARY WESTINGHOUSE ELECTRIC SA IS SELLING ITS WESTINGHOUSE CONTROLMATIC SUBSIDIARY TO SAUNIER DUVAL ELECTRICITE AND SGE DEUTSCHE HOLDING BOTH SUBSIDIARIES OF CAMPAGNIE GENERALE DES EAUX TERMS WEREN'T DISCLOSED MARSH & MCLENNAN COS A WORLDWIDE INSURANCE BROKERAGE COMPANY OPENED A REPRESENTATIVE OFFICE IN BEIJING 9404190116 940419 WHO'S NEWS DEUTSCHE BANK HIRES NINE TRADERS FROM CITIBANK FOREIGNEXCHANGE STAFF BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CITIBANK LOST NINE FOREIGNEXCHANGE TRADERS TO DEUTSCHE BANK NA ON FRIDAY PUTTING A DENT TO THE BANKING GIANT'S DOMINANT FOREIGNEXCHANGE BUSINESS CITIBANK'S HEAD OF NEW YORK FOREIGN EXCHANGE MICHAEL DESA WILL JOIN DEUTSCHE BANK ALONG WITH EIGHT OTHER TRADERS INCLUDING MR DESA'S LIEUTENANT DANIEL ALMEIDA A SPOKESMAN FOR DEUTSCHE BANK CONFIRMED THE NEW YORK BRANCH OF THE GERMAN BANK HIRED NINE PROFESSIONALS AND POINTED TO THE BANK'S PREVIOUSLY ANNOUNCED PLANS TO EXPAND ITS OPERATIONS IN THE US HE DECLINED TO COMMENT FURTHER CITIBANK WOULD ONLY CONFIRM THAT THE BANK LOST SEVERAL TRADERS YESTERDAY CITICORP'S CITIBANK NAMED DAVID BUCHEN TO REPLACE MR DESA AS HEAD OF NEW YORK FOREIGN EXCHANGE MR BUCHEN MOST RECENTLY SERVED AS A VICE PRESIDENT EMERGING MARKETS AND EQUITY DERIVATIVES IT'S UNCLEAR WHY MR DESA A 17YEAR CITIBANK VETERAN WHO JOINED THE BANK FROM THE UNIVERSITY OF BOMBAY LEFT THE BANK BUT IN THE FIRST QUARTER CITIBANK CONSOLIDATED ALL ITS FOREIGN TRADING UNDER ONE EXECUTIVE LONDONBASED JULIAN SIMMONDS MR DESA PREVIOUSLY REPORTED TO THE NEW YORK OFFICE HE WOULD HAVE BEEN REPORTING TO BOTH MR SIMMONDS AND A NEW YORK EXECUTIVE WALL STREET RECRUITERS SAY THE CITIBANK TRADERS WERE PROBABLY ABLE TO FETCH TOP DOLLAR FROM A COMPANY THAT WANTED TO BUILD UP A BUSINESS QUICKLY DEUTSCHE BANK ISN'T A MAJOR PLAYER IN THE GLOBAL FOREIGNEXCHANGE BUSINESS DEUTSCHE BANK OBVIOUSLY ACQUIRED SOME VERY SEASONED PROFESSIONALS AND I'M SURE THEY PAID RATHER DEARLY FOR THAT TALENT SAID STEVEN LAZARUS SENIOR VICE PRESIDENT AT MARIASCHIN & CO AN EXECUTIVE RECRUITER CITIBANK IS THE WORLD'S LEADING DEALER IN FOREIGNEXCHANGE TRADING GENERATING REVENUE OF 995 MILLION LAST YEAR IT HAS 70 DEALING ROOMS AROUND THE WORLD AND TRADES IN 140 CURRENCIES ITS FOREIGNEXCHANGE UNIT HAS WON EUROMONEY MAGAZINE'S ANNUAL SURVEY OF CORPORATE TREASURERS AS THE NO 1 FOREIGN DEALER FOR THE PAST 15 YEARS WORLDWIDE ITS FOREIGNEXCHANGE OPERATION EMPLOYS 700 PROFESSIONALS IT HAS MORE THAN 100 TRADERS IN NEW YORK WE'VE GOT A LOT OF BENCH STRENGTH HERE AND AN INFRASTRUCTURE THAT NO ONE COMES CLOSE TO MATCHING A CITIBANK SPOKESWOMAN SAID OVER THE YEARS OTHER FIRMS HAVE HIRED AWAY CITIBANK EMPLOYEES HOPING TO DUPLICATE OUR SUCCESS OUTSIDERS SUCH AS MR LAZARUS SAY THE DEPARTURES COULD HURT THE BANK AT LEAST IN THE SHORT TERM BUT LONGER TERM PEOPLE ON WALL STREET AGREED THAT CITIBANK PROBABLY HAS A STRONG BACKUP TEAM CITIBANK MIGHT HAVE SOME DISARRAY UNTIL THEY BRING PEOPLE ON BOARD TO MAKE UP FOR THE LOSS MR LAZARUS SAID 9404190115 940419 INTERNATIONAL DEUTSCHE BANK SAYS EXPOSURE ON SCHNEIDER IS ABOUT 700 MILLION FRANKFURT DEUTSCHE BANK AG SAID ITS CREDIT EXPOSURE IN FUGITIVE DEVELOPER JUERGEN SCHNEIDER'S BANKRUPT PROPERTY EMPIRE TOTALS ABOUT 12 BILLION MARKS 700 MILLION IN SECURED LOANS DEUTSCHE BANK MR SCHNEIDER'S BIGGEST UNDERWRITER ALSO DISPUTED CONTENTIONS BY THE FRANKFURT PROSECUTOR'S OFFICE THAT IT WAS TARDY IN INFORMING AUTHORITIES OF HIS FINANCIAL STRAITS DEUTSCHE BANK FILED A FRAUD COMPLAINT ON APRIL 13 AGAINST MR SCHNEIDER WHO DISAPPEARED EARLIER THIS MONTH LEAVING BEHIND BANK DEBTS TOTALING AT LEAST FIVE BILLION MARKS IN KOENIGSTEIN A TOWN NEAR FRANKFURT WHERE HIS JUERGEN SCHNEIDER AG WAS BASED A LOCAL COURT SAID YESTERDAY THAT DEUTSCHE BANK AND BAYERISCHE HYPOTHEKEN & WECHSEL BANK AG OF MUNICH FILED A BANKRUPTCY MOTION AGAINST MR SCHNEIDER AND HIS WIFE CLAUDIA MR SCHNEIDER HELD THE BULK OF HIS 75 HIGHLY LEVERAGED COMMERCIAL PROPERTIES UNDER A LEGAL ENTITY FORMED BY THE COUPLE THE BANKRUPTCY FILING WOULD GIVE BANKS ACCESS TO PROPERTIES THAT MR SCHNEIDER IS SAID TO HAVE USED TO SECURE FRESH FINANCING FOR OTHER PROJECTS THE CASE COMES IN ADDITION TO THE BANKRUPTCY DECLARATION ON FRIDAY BY JUERGEN SCHNEIDER AG THE COMPANY OF WHICH MR SCHNEIDER WAS BOTH OWNER AND CHAIRMAN HAD ASSETS OF ONLY FIVE MILLION MARKS AND ACTED CHIEFLY AS A MANAGEMENT UNIT FOR HIS PERSONALLY HELD PROPERTIES ACROSS GERMANY A SECOND SCHNEIDER COMPANY TECHNOTEAM BAUCONSULT WHICH LED THE GROUP'S BUILDING PROJECTS FILED FOR BANKRUPTCY IN WIESBADEN YESTERDAY 9404190114 940419 WALTER INDUSTRIES IS FOUND NOT LIABLE FOR ASBESTOS CLAIMS AT A FORMER UNIT BY WADE LAMBERT AND GREG STEINMETZ STAFF REPORTERS OF THE WALL STREET JOURNAL WALTER INDUSTRIES INC ISN'T REQUIRED TO COVER A FORMER SUBSIDIARY'S ASBESTOS LIABILITY A BANKRUPTCYCOURT JUDGE RULED THE COMPANY WHICH WAS TAKEN PRIVATE BY KOHLBERG KRAVIS ROBERTS & CO IN 1987 SAID THE RULING IS A BOOST FOR ITS PROPOSED BANKRUPTCYREORGANIZATION PLAN THE WALTER PROPOSAL WOULD SET ASIDE NO FUNDS FOR ASBESTOS PERSONALINJURY CLAIMANTS INJURED BY PRODUCTS MADE BY THE FORMER SUBSIDIARY CELOTEX CORP HOWEVER THE COMPANY'S MAJOR CREDITORS SAID THAT DESPITE THE JUDGE'S RULING THEY WILL CONTINUE TO BACK A RIVAL REORGANIZATION PROPOSAL THAT INCLUDES A 525 MILLION SETTLEMENT FOR ASBESTOS PERSONALINJURY CLAIMANTS THE PROPOSED SETTLEMENT WAS REACHED LATE LAST YEAR BY THE COMPANY'S BONDHOLDERS LED BY LEHMAN BROTHERS INC AND APOLLO ADVISORS RUN BY FINANCIER LEON BLACK AN AMENDED VERSION OF THE BONDHOLDERS' PROPOSAL IS EXPECTED TO BE FILED TOMORROW IN WHICH BANKS AND OTHER CREDITORS JOIN THE BONDHOLDERS THE BONDHOLDERS' COMMITTEE MAINTAINS SETTLING THE ASBESTOS CLAIMS IS THE ONLY WAY TO PUT AN END TO THE ASBESTOS LITIGATION AND GET THE COMPANY OUT OF BANKRUPTCYLAW PROCEEDINGS WALTER INDUSTRIES FILED FOR CHAPTER 11 BANKRUPTCYCOURT PROTECTION IN DECEMBER 1989 PARTLY BECAUSE OF 2 BILLION IN ASBESTOS CLAIMS AGAINST THE FORMER SUBSIDIARY FREDERICK M BARON AN ATTORNEY FOR THE ASBESTOS CLAIMANTS WHO AGREED TO THE SETTLEMENT WITH THE BONDHOLDERS SAID THAT THE BANKRUPTCYCOURT JUDGE'S RULING WOULD BE APPEALED WITHOUT A SETTLEMENT OF THE CLAIMS WE'VE GOT AT LEAST A COUPLE MORE YEARS OF LITIGATION SAID MR BARON OF DALLAS LAW FIRM BARON & BUDD BANKRUPTCY JUDGE ALEXANDER PASKAY SAID THAT FOR THE ASBESTOS CLAIMANTS TO PIERCE THE CORPORATE VEIL AND HOLD THE FORMER PARENT COMPANY LIABLE THEY HAD TO SHOW THAT IT ACTED IMPROPERLY IN OPERATING OR SELLING THE SUBSIDIARY IN THE RULING THE JUDGE SAID THE CLAIMANTS HAD PRESENTED A LOT OF SMOKE BUT NOT SUFFICIENT FIRE GIVEN OUR LONGSTANDING BELIEF THAT THE VEIL SHOULDN'T BE PIERCED WE HAVE NEVER FELT THAT ANY SETTLEMENT TO THE ASBESTOS CLAIMANTS LET ALONE A HALF BILLION DOLLAR SETTLEMENT IS APPROPRIATE SAID JAMES WALTER CHAIRMAN OF THE TAMPA FLABASED HOMEBUILDER THE COMPANY SAID IT PLANS TO FILE AN AMENDED REORGANIZATION PLAN BUT GAVE NO DETAILS ITS CURRENT PLAN PROVIDES MORE FOR SHAREHOLDERS THAN THE CREDITORS HAVE PROPOSED A BANKRUPTCYREORGANIZATION PLAN MUST BE APPROVED BY CREDITORS AND THE BONDHOLDERS' COMMITTEE MAINTAINS THAT IT HAS ENOUGH VOTES FROM OTHER CREDITORS FOR ITS PROPOSAL TO PASS AN ATTORNEY INVOLVED IN THE CASE WHO ASKED NOT TO BE IDENTIFIED SAID THAT EVEN IN LIGHT OF THE RULING BY JUDGE PASKAY IN TAMPA THE AMOUNT SET ASIDE FOR ASBESTOS CLAIMANTS WOULDN'T BE REDUCED ALL THE CREDITORS RECOGNIZE THAT SETTLING THE ASBESTOS CLAIMS IS THE ONLY WAY TO GET THE COMPANY OUT OF BANKRUPTCY PROCEEDINGS HE SAID THE SETTLEMENT WOULD ESTABLISH A 525 MILLION TRUST TO COMPENSATE PEOPLE SUFFERING PERSONAL INJURY OR PROPERTY DAMAGE AS A RESULT OF ASBESTOS IF KKR WALTER'S MAIN SHAREHOLDER AGREES TO THE SETTLEMENT IT WOULD RETAIN 75 MILLION IN EQUITY OF THE REORGANIZED COMPANY AND THE TRUST WOULD BE REDUCED TO 450 MILLION SOME ANALYSTS SAID IT APPEARS THAT THE RULING COULD PUT PRESSURE ON THE ASBESTOS CLAIMANTS TO ACCEPT A SMALLER SETTLEMENT SCOTT SCHARER A SECURITIES ANALYST WITH OPPENHEIMER MANAGEMENT CO SAID THE SETTLEMENT INCREASES KKR'S LEVERAGE THIS MEANS THERE WON'T NECESSARILY BE A BIG PAYOUT HE SAID IF KKR SUCCEEDS IN NEGOTIATING A LOWER PAYOUT IT WILL MEAN MORE MONEY AVAILABLE TO BOTH CREDITORS AND ITSELF WALL STREET REACTED FAVORABLY TO THE DECISION WALTER'S 1375 SUBORDINATED DEBENTURES ROSE MORE THAN THREE CENTS ON THE DOLLAR YESTERDAY TO CLOSE AT 89 CENTS ON THE DOLLAR 9404190113 940419 ABREAST OF THE MARKET STOCKS LOSE 4105 POINTS ON NEWS OF ANOTHER FED CREDIT TIGHTENING BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK AFTER TWO WEEKS OF STABILIZATION STOCKS WERE TOPPLED BY NEWS OF ANOTHER FEDERAL RESERVE CREDIT TIGHTENING A QUIET MORNING OF TRADING YESTERDAY WAS DISRUPTED WHEN THE CENTRAL BANK SAID IT WOULD NUDGE HIGHER SHORTTERM INTEREST RATES STOCKS FOLLOWED BONDS LOWER THE DOW JONES INDUSTRIAL AVERAGE FELL NEARLY 50 POINTS AT ITS WORST LEVEL OF THE DAY BEFORE FINISHING WITH A LOSS OF 4105 OR 112 TO 362042 IT WAS THE INDUSTRIAL AVERAGE'S LOWEST CLOSE SINCE IT HIT A FIVEMONTHLOW OF 359335 ON APRIL 4 AT THE TAILEND OF THE MARKET'S STEEP ENDOFFIRSTQUARTER SELLOFF LONGTERM GOVERNMENT BONDS PLUNGED MORE THAN 1 3/8 POINTS CARRYING THE YIELD ON THE 30YEAR TREASURY TO HIGHS UNSEEN SINCE JANUARY 1993 THE YIELD JUMPED TO 742 THE DOW JONES INDUSTRIALS HAD HELD ABOVE 3650 SINCE SNAPPING BACK FROM ITS LATE MARCH LOSSES AND ANALYSTS YESTERDAY HAD PREDICTED MORE STABILITY THIS WEEK BUT THAT SCENARIO CAME APART EARLY IN THE DAY WHEN THE FED SIGNALED THAT IT HAD RAISED ITS TARGET FOR THE KEY FEDERAL FUNDS RATE BY 025 PERCENTAGE POINT TO 375 THE STANDARD & POOR'S 500 STOCK INDEX DROPPED 372 OR 083 TO 44246 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX DECLINED 196 OR 079 TO 24570 THE NASDAQ COMPOSITE INDEX SLUMPED 752 OR 103 TO 72045 ITS LOWEST LEVEL SINCE AUGUST 1993 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX SHED 429 OR 098 TO 43400 DECLINERS LED ADVANCERS 1645 TO 631 ON THE BIG BOARD WHERE VOLUME WAS 271450000 SHARES COMPARED WITH 308130000 SHARES FRIDAY ECONOMICALLY SENSITIVE STOCKS SUCH AS THOSE OF FACTORY EQUIPMENT STEEL AND AIRLINE COMPANIES WERE AMONG THE WEAKEST THE ECONOMICALLY SENSITIVE DOW JONES TRANSPORTATION AVERAGE SHED 2494 OR 155 TO 158531 GENERAL ELECTRIC FELL 1 7/8 TO 94 7/8 THE FAIRFIELD CONN CONGLOMERATE WILL TAKE A PRETAX CHARGE OF 350 MILLION IN THE FIRST QUARTER ASSOCIATED WITH AN INAPPROPRIATE BOND TRADING SCHEME UNCOVERED AT ITS KIDDER PEABODY & CO SECURITIES BROKERAGE UNIT KIDDER HAS FIRED ITS HEAD GOVERNMENTBOND TRADER AND SUSPENDED SIX OTHERS DIGITAL EQUIPMENT CONTINUED TO SLIDE AFTER POSTING A LARGERTHANEXPECTED THIRDQUARTER LOSS ON FRIDAY SHARES OF THE MAYNARD MASS COMPUTERSYSTEMS MAKER LOST 1 7/8 TO 21 1/8 FOLLOWING A 5 7/8POINT PLUNGE FRIDAY SMITH BARNEY SHEARSON YESTERDAY MORNING CUT A RATING ON THE STOCK TO NEUTRAL FROM BUY ELSEWHERE IN THE TECHNOLOGY GROUP INTEL DROPPED 1 1/4 TO 58 1/2 MICROSOFT FELL 1 7/8 TO 83 AND APPLE COMPUTER FELL 5/8 TO 29 5/8 ALL ON NASDAQ HEWLETTPACKARD DROPPED 3/8 TO 77 3/4 AND CONNER PERIPHERALS SLIPPED 1/2 TO 14 7/8 BUT INTERNATIONAL BUSINESS MACHINES INCREASED 3/8 TO 53 3/8 ENCOURAGING EARNINGS NEWS BUOYED MANY INDIVIDUAL ISSUES BUT WASN'T ENOUGH TO OFFSET THE INTERESTRATE WORRIES MERRILL LYNCH ADVANCED 1 TO 36 1/4 AFTER THE NEW YORK BROKERAGE FIRM REPORTED FIRSTQUARTER EARNINGS OF 168 A SHARE UP FROM 151 A SHARE EXCLUDING A CHARGE LAST YEAR ANALYSTS HAD PREDICTED A PROFIT OF JUST 146 ACCORDING TO THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM STRONGER PROFITS LIFTED CHASE MANHATTAN AND NATIONSBANK BUT OTHER BANKING STOCKS WERE MOSTLY LOWER CHASE ADDED 5/8 TO 34 3/8 AND NATIONSBANK EDGED UP 1/8 TO 52 1/4 WHILE CITICORP FELL 1/4 TO 39 CHEMICAL BANKING SLIPPED 5/8 TO 37 1/2 AND WELLS FARGO LOST 2 1/2 TO 146 1/4 FEDERAL HOME LOAN MORTGAGE OR FREDDIE MAC ROSE 3/8 TO 55 3/8 AFTER THE GOVERNMENTCREATED COMPANY REPORTED FIRSTQUARTER OPERATING INCOME OF 136 A SHARE EXCLUDING A CHARGE OF 16 CENTS A YEARAGO THE MCLEAN VABASED CONCERN EARNED 106 MCDONNELL DOUGLAS JUMPED 2 5/8 TO 114 1/8 AFTER IT REPORTED FIRSTQUARTER EARNINGS OF 341 A SHARE WELL ABOVE THE 272 MEAN ESTIMATE OF ANALYSTS SURVEYED BY IBES A YEAR AGO THE ST LOUIS MO AEROSPACE COMPANY HAD INCOME FROM CONTINUING OPERATIONS OF 241 EXCLUDING A GAIN WHIRLPOOL THOUGH SLUMPED 3/4 TO 57 1/2 ITS FIRSTQUARTER PROFIT JUMPED TO 90 CENTS A SHARE FROM ABOUT 81 CENTS BEFORE CHARGES A YEAR AGO BUT THE RESULTS FELL SHORT OF THE 93 CENTS A SHARE ANALYSTS HAD FORECAST FOR THE BENTON HARBOR MICH HOME APPLIANCE MAKER LATE IN THE DAY INTEL SANTA CLARA CALIF POSTED A FIRSTQUARTER PROFIT OF 140 A SHARE UP FROM 124 A SHARE A YEAR AGO REDMOND WASHBASED MICROSOFT REPORTED EARNINGS OF 111 A SHARE BEFORE A CHARGE FOR THE THIRD QUARTER ENDED MARCH 31 COMPARED WITH A PROFIT OF 80 CENTS LAST YEAR BOTH STOCKS WERE HIGHER AFTERHOURS ON REUTERS HOLDINGS' ELECTRONIC INSTINET SYSTEM INTEL TRADED AT 59 MICROSOFT AT 85 PROMUS ADVANCED 2 1/8 TO 35 5/8 AFTER THE MEMPHIS TENN HOTEL AND CASINO COMPANY REPORTED FIRSTQUARTER EARNINGS OF 27 CENTS A SHARE COMPARED WITH A PROFIT OF 12 CENTS A SHARE BEFORE A CHARGE LAST YEAR ANALYSTS HAD PREDICTED INCOME OF JUST 20 CENTS ACCORDING TO IBES MCGRAWHILL LOST 1 3/8 TO 65 ITS EARNINGS SLIPPED TO 30 CENTS A SHARE IN THE FIRST QUARTER THE NEW YORK PUBLISHER POSTED NET INCOME OF 31 CENTS A YEAR EARLIER TELEFONOS DE MEXICO'S AMERICAN DEPOSITARY RECEIPTS DROPPED 2 1/8 TO 54 7/8 ON BIG BOARDLEADING VOLUME OF 39 MILLION STOCKS WERE LOWER ON THE MEXICAN STOCK MARKET PARTLY ON CONCERNS THAT THE COUNTRY'S CORPORATE PROFITS WILL BE DISAPPOINTING NORSK HYDRO'S ADR'S FELL 1/2 TO 31 5/8 ON HEAVY VOLUME OF 37 MILLION NEIL SMITH A SENIOR VICE PRESIDENT AT SG WARBURG & CO TIED THE ACTIVITY TO TRADING STRATEGIES ASSOCIATED WITH A DIVIDEND THE NORWEGIAN CONCERN WILL PAY IN JUNE THE EXDIVIDEND DATE ASSOCIATED WITH THE PAYOUT IS TODAY MARGARETTEN FINANCIAL ROSE 3/4 TO 13 5/8 AFTER THE AMERICAN BANKER REPORTED THAT ARBOR NATIONAL MORTGAGE HOLDINGS ALSO A MORTGAGE BANK HAD PUT ITSELF ON THE BLOCK FOR 185 MILLION HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY SAID INVESTORS FEAR HIGHER INTEREST RATES WILL DEPRESS THE ECONOMY AND PROFITS LEHMAN BROTHERS ANALYST ELAINE GARZARELLI TOLD CLIENTS YESTERDAY MORNING THAT SHE EXPECTS CORPORATE PROFITS TO DROP 1 TO 2 IN 1995 FROM ESTIMATED 1994 LEVELS BECAUSE OF THE RISE IN INTEREST RATES SHE TRIMMED HER 1994 ESTIMATE A WEEK AGO FIRST ALBANY'S MR JOHNSON SAID THE FEDERAL FUNDS RATE MIGHT HAVE TO RISE TO 45 TO CALM FEARS THAT RECENT SIGNS OF ECONOMIC STRENGTH WILL LEAD TO HIGHER INFLATION THE THREAT OF HIGHER RATES AND INFLATION COULD KNOCK ANOTHER 250 POINTS OFF THE DOW OVER THE NEXT MONTH OR TWO HE SAID 9404190112 940419 TRACKING TRAVEL BY JENNIFER CODY CHANGING SOCIAL TRENDS AND PLUMMETING TRAVEL PRICES ARE BOOSTING JAPANESE OVERSEAS TRAVEL AND GIVING RISE TO A NEW JETSETTING CLASS CHILDREN KIDS COMPRISE THE FASTESTGROWING SECTOR IN JAPAN'S OVERSEAS TRAVEL INDUSTRY WITH SOME TRAVEL COMPANIES POSTING DOUBLEDIGIT ANNUAL GROWTH FOR THEIR 12ANDUNDER CLIENTELE JAPAN TRAVEL BUREAU SAYS ITS SALES TO CHILDREN GREW 15 BETWEEN 1992 AND 1993 RIVAL JETOUR REPORTED UP TO 10 INCREASES FOR THE PERIOD THE AGENCIES EXPECT THE TREND TO CONTINUE IN 1994 A JETTOUR SPOKESMAN CITES PRICE WARS AMONG TICKET AGENCIES AND TRAVEL BUREAUS WHICH ARE RUSHING TO COMPILE PAREDDOWN PACKAGES TRADITIONALLY LINES DEFINING PROPER GLOBETROTTING FOR JAPANESE MOMS WERE RIGID DURING THE 1980S WOMEN AND MEN TRAVELED AFTER GRADUATION FROM COLLEGE BUT WOMEN DROPPED OUT OF THE PICTURE AFTER MARRIAGE UNTIL THEIR NESTS EMPTIED TRAVELING WITH KIDS WAS SEEN AS RISKY AND LEAVING THEM BEHIND NEGLIGENT NOW TRAVELINDUSTRY EXPERTS SAY A MORE TRAVELSAVVY PUBLIC AND THE NEW AFFORDABILITY OF OVERSEAS TRIPS HAS CHANGED THAT TRAVEL IS RISING DESPITE RECESSIONARY PRESSURES 124 MILLION JAPANESE ARE EXPECTED TO GO OVERSEAS THIS YEAR A 42 INCREASE FROM 1993 JTB SAYS AND FAMILIES ARE MAKING UP MORE OF THAT INCREASE BUSINESSES IN TURN ARE RUSHING TO CASH IN FOR EXAMPLE JTB IS OFFERING HALFPRICED CHILDREN'S RATES TO CALIFORNIA AND HAWAII WHILE JETOUR GIVES A 50 BREAK FOR CHILDREN HEADED TO AUSTRALIA HAWAII THE US AND MICRONESIA HOTELS IN POPULAR JAPANESE DESTINATIONS ARE OFFERING NEW SERVICES LIKE BABYSITTING AND SPECIAL ARRANGEMENTS WITH LOCAL ZOOS AND AQUARIUMS RECESSIONARY ANGST MAY NOT HAVE DISCOURAGED OVERSEAS TRAVEL BY JAPANESE TOURISTS BUT IT HAS SIGNIFICANTLY TIGHTENED THEIR AGENDAS TRAVEL COMPANIES SAY THEY ARE CATERING TO THE SEASON'S TWOWORD THEME SHORT AND CHEAP TRAVEL AGENTS SAY SUCH PACKAGES ARE SOMETIMES LESS THAN HALF THE PRICE OF THOSE SOLD DURING THE JETSETTING BUBBLE YEARS AGENCIES HAVE BEEN CHURNING OUT WHIRLWIND TRAVEL OPTIONS MOSTLY AIMED AT GRADUATING STUDENTS AND YOUNG PROFESSIONALS KINKI NIPPON TOURIST FOR EXAMPLE IS PUSHING A NINEDAY EUROPEAN TOUR TO TWO EUROPEAN CAPITALS SIGNIFICANTLY SHORTER THAN THE ONE TO THREEWEEK PACKAGES IN VOGUE TWO YEARS AGO SOME AGENCIES TAKE THAT CONCEPT A BREATHLESS STEP FURTHER WITH A THREESTOP EIGHTDAY VERSION COMPANIES ARE ALSO STRESSING A THIRD THRIFTY THEME CHIKAI OR CLOSE TRAVEL TO NEARBY DESTINATIONS IS RISING JAPANESE VISITORS TO SOUTH KOREA FOR EXAMPLE ROSE 20 IN THE LAST HALF OF 1993 FROM A YEAR EARLIER ACCORDING TO INDUSTRY ESTIMATES PART OF THE GROWTH STEMMED FROM RELAXED TRAVEL REGULATIONS JAPANESE TOURISTS NO LONGER NEED VISAS FOR THE TRIP IF THEY GO FOR 16 DAYS OR LESS BUT INDUSTRY EXPERTS SAY THE POPULARITY OF SUCH LOCATIONS ALSO INDICATES A RETURNING INTEREST IN THINGS ASIAN THE JAPANESE SAYS YOSHIO KOTEDA GENERAL MANAGER OF INTERNATIONAL RELATIONS AT JTB'S OVERSEAS TRAVEL BUREAU ARE MUCH MORE COMFORTABLE IN ASIAN SETTINGS AND ALSO ARE BECOMING MORE INTERESTED IN ASIAN FOODS AND CULTURE TRAVEL COMPANIES ARE FUELING THE TREND WITH INNOVATIVE AND CHEAP TRIPS TO SOUTH KOREA SOME OFFER LOCAL ATTRACTIONS LIKE KOREANSTYLE BARBECUE DINNERS AND ACUPUNCTURE TREATMENTS IN ADDITION TO A NIGHT'S STAY AND AIRFARE AND MANY RING IN AT LESS THAN 30000 YEN 290 PER NIGHT THE DAYTRIP TRADE ALSO IS FLOURISHING EXPERTS SAY PEOPLE ARE STAYING CLOSER TO HOME ON WEEKENDS AND HOLIDAYS TAKING ADVANTAGE OF NEW DAYLONG HOTSPRING PACKAGES AND BYTHEHOUR ROOM RENTALS MORE JAPANESE ARE TAKING THEIR VOWS IN FOREIGN CLIMES PROMPTED BY EXOTIC LOCALES RUSTIC CHURCHES AND PRICES THAT ARE MUCH LOWER THAN JAPAN'S EXPERTS SAY ABOUT 20000 OF 800000 ABOUTTOWED JAPANESE COUPLES IN 1993 TIED THE KNOT OVERSEAS 20 MORE THAN A YEAR EARLIER THE MAIN REASON COST THERE IS REALLY A HUGE DIFFERENCE IN GETTING MARRIED OUTSIDE JAPAN SAYS NORIKO SUZUKI CHIEF MANAGER FOR TOKYO WEDDING SERVICE SAIKEN A TYPICAL WEDDING CAN COST UP TO FOUR MILLION YEN INCLUDING CEREMONY WEDDING SITE PARTY AND WEDDING GOWN IN HAWAII OR AUSTRALIA SHE SAYS ALL OF THAT EXCEPT FOR THE PARTY CAN BE HAD FOR 300000 YEN LESS THAN A TENTH OF THE COST OVERSEAS WEDDINGS ALSO OFFER SOME LESS OBVIOUS ADVANTAGES SHE AND OTHERS NOTE THE COUPLE CAN PARE DOWN THEIR GUEST LIST OBLIGATORY INVITES ARE IMPRACTICAL AND THEY CAN QUICKLY CUT TO THE HONEYMOON PLUS HAWAII AUSTRALIA AND NEW ZEALAND BOAST AN ARRAY OF CHARMING CHAPELS STILL THE NUPTIAL LOCATION OF CHOICE EVEN THOUGH MOST JAPANESE AREN'T CHRISTIAN THE NEW POPULARITY OF SUCH NUPTIAL PLANS HAS EARNED WINDFALL PROFITS FOR THE YOUNG INDUSTRY THAT CATERS TO IT SAIKEN FIRST OPENED SHOP IN HAWAII IN 1992 TO PROVIDE JAPANESESTYLE WEDDING SERVICES TO TRAVELERS THERE THE RESPONSE HAS BEEN OVERWHELMING SAYS MS SUZUKI HER COMPANY SERVICED 1350 COUPLES LAST YEAR THREE TIMES THAT OF THE YEAR BEFORE SIMILARLY TOKYO PRODUCE ANOTHER TOKYOBASED WEDDING CENTER SAYS SALES OF ITS MARRIAGE PACKAGES TO HAWAII AND AUSTRALIA WERE UP BY MORE THAN 25 IN 1993 ANALYSTS SAY THE TREND IS PART OF A SHIFT IN TRAVEL FOCUS JAPAN'S RECESSION HAS COME AT A TIME WHEN JAPANESE TRAVELERS ARE TIRING OF THE BUBBLEECONOMY SHOP TILL YOU DROP MENTALITY THE YOUNG GENERATION IN JAPAN'S WAY OF EVALUATING THINGS INCLUDING TRAVEL IS CHANGING SAYS YASUTAKE TSUKAMOTO MANAGER OF OVERSEAS PROMOTION AT THE JAPAN NATIONAL TOURIST ORGANIZATION THEY ARE TRYING TO FIND SOMETHING NEW SOMETHING OFFTHEBEATEN TRACK OR HAVE A SPECIAL PURPOSE WHEN THEY TRAVEL 9404190111 940419 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED APRIL 15 1994 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER MISSOURI HOUSING DEVELOPMENT COMMISSION WILL REDEEM 11 MILLION PRINCIPAL AMOUNT OF THE FOLLOWING MORTGAGE PURCHASE BONDS SERIES MAY 15 1979 ON MAY 15 1994 66 DUE NOV 15 9496 AND 2010 MERCANTILE BANK OF ST LOUIS IS TRUSTEE 9404190110 940419 WHO'S NEWS JWP INC APPOINTS MACINNES CHAIRMAN PRESIDENT AND CEO RYE BROOK NY JWP INC A MECHANICAL AND ELECTRICAL CONSTRUCTION AND MAINTENANCE SERVICES COMPANY SAID IT NAMED FRANK T MACINNES CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER MR MACINNES 47 YEARS OLD SUCCEEDS EDWARD F KOSNIK 48 WHO ANNOUNCED HIS INTENTION TO RESIGN WHEN THE COMPANY FILED FOR PROTECTION UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY LAW IN FEBRUARY MR MACINNES HAS MORE THAN 20 YEARS OF EXPERIENCE IN THE CONSTRUCTION INDUSTRY FOR THE PAST FIVE YEARS HE HAS BEEN CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF COMSTOCK GROUP INC A NATIONWIDE ELECTRICAL CONTRACTING COMPANY HE ALSO HAD BEEN COMSTOCK'S CHIEF FINANCIAL OFFICER JWP SAID MR MACINNES' EXTENSIVE EXPERIENCE IN THE CONTRACTING BUSINESS WILL BE EXTREMELY VALUABLE AS JWP FOCUSES ON ITS BUSINESS AND COMPLETES A FINANCIAL REORGANIZATION 9404190109 940419 KELLWOOD TO BUY ODYSSEY UNIT ST LOUIS KELLWOOD CO SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE SIERRA DESIGNS A BERKELEY CALIF DIVISION OF ODYSSEY INTERNATIONAL TERMS WEREN'T DISCLOSED KELLWOOD IS AN APPAREL COMPANY SIERRA DESIGNS MARKETS OUTDOORS EQUIPMENT AND APPAREL IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE KELLWOOD CLOSED AT 2325 UP 375 CENTS 9404190108 940419 NEW IRS RULES TAKE AIM AT OVERSEAS TAX HAVENS WASHINGTON THE INTERNAL REVENUE SERVICE SAID IT WILL ISSUE RULES DESIGNED TO DISCOURAGE US CORPORATIONS FROM MOVING OVERSEAS TO AVOID TAXES UNDER THE REGULATIONS A US SHAREHOLDER WHO EXCHANGES STOCK OF A US CORPORATION FOR STOCK OF A FOREIGN CORPORATION IN AN OTHERWISE TAXFREE REORGANIZATION GENERALLY WILL BE SUBJECT TO TAX THE IRS SAID IT WILL MAKE AN EXCEPTION FOR SHAREHOLDERS WHO CAN PROVE THE TRANSACTION WASN'T INTENDED TO AVOID US TAXES THE REGULATIONS WILL APPLY TO TRANSFERS OCCURRING YESTERDAY OR THEREAFTER THE IRS SAID SOME US COMPANIES HAVE REORGANIZED OFFSHORE BECAUSE FOREIGNBASED CORPORATIONS ARE TAXED ONLY ON INCOME EARNED AT US OPERATIONS COMPANIES BASED IN THE US HOWEVER ARE TAXED ON INCOME EARNED IN THE US AND ABROAD A SENIOR TREASURY OFFICIAL SAID THE IRS MOVED AFTER SHAREHOLDERS OF HELEN OF TROY CORP IN EL PASO TEXAS IN FEBRUARY APPROVED A PLAN UNDER WHICH THE COMPANY WILL EXCHANGE ALL ITS COMMON SHARES FOR COMMON SHARES OF A COMPANY RECENTLY FORMED UNDER BERMUDA LAW AT THE TIME THE HAIRCARE COMPANY SAID THE STEP WOULD LET IT TAKE ADVANTAGE OF VARIOUS FINANCING AND TAXPLANNING OPPORTUNITIES UNAVAILABLE TO US AS A DOMESTICALLY ORGANIZED CORPORATION 9404190105 940419 MARKETING & MEDIA MARKETSCAN SOME COLGATE BRANDS ARE LOSING MARKET SHARE TO INNOVATIVE RIVALS BY SUEIN L HWANG COLGATE TOOTHPASTE PALMOLIVE DISH DETERGENT MENNEN SPEED STICK DEODORANT THEY ARE HOUSEHOLD NAMES THAT EVOKE COMFORTING IMAGES OF DEPENDABILITY AND VALUE BUT VERY LITTLE EXCITEMENT GRANTED DISH DETERGENT AND BAR SOAP ARE HARDLY THE STUFF FROM WHICH LEGENDS ARE CREATED BUT COLGATEPALMOLIVE CO HAS LET SOME OF ITS MOST VENERABLE BRANDS GROW STALE CRITICS SAY COLGATE HAS SUCCEEDED IN BUILDING AN INTERNATIONAL BUSINESS THAT STRETCHES FROM AUSTRIA TO ZIMBABWE AND IN CUTTING ITS OPERATING COSTS BUT IT HAS NEGLECTED ITS BRANDS IN THE US IN THE PROCESS LAST YEAR COLGATE'S US BUSINESS WHICH GENERATED A THIRD OF THE COMPANY'S 714 BILLION IN REVENUE LOST MARKET SHARE IN BRAND AFTER BRAND DOLLAR SALES OF COLGATE TOOTHPASTE DECLINED 23 IN SUPERMARKETS DRUGSTORES AND MASSMERCHANDISE OUTLETS ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE SALES OF PALMOLIVE DISH DETERGENT SKIDDED 119 WHILE SALES OF SPEED STICK DEODORANT DECLINED 38 MEANWHILE SUCCESSFUL NEW PRODUCTS FROM RIVALS INCLUDING GILLETTE CO'S SERIES LINE OF MENS' TOILETRIES PROVED THAT INNOVATION CAN BOOST SALES IN EVEN THE MOST HUMDRUM PRODUCT CATEGORIES BRYAN BRADFORD A 20YEAROLD STUDENT AT PRINCETON UNIVERSITY SAYS HE RECENTLY SWITCHED TO THE GILLETTE SERIES DEODORANT WHICH FEATURES A CLEAR BLUE DEODERANT STICK ENCASED IN A SPACEAGE SILVER PLASTIC TUBE I THOUGHT IT WAS EXCITING HE SAYS IT JUST LOOKS COOLER EVEN COLGATE'S FLAGSHIP TOOTHPASTE BRAND HAS STEADILY LOST SHARE TO PROCTER & GAMBLE CO AND OTHER RIVALS OVER THE YEARS THE RECENT SUCCESS OF UNILEVER GROUP'S MENTADENT TOOTHPASTE WHICH COMES IN A PUMP THAT DISPENSES BOTH A PEROXIDE GEL AND BAKINGSODA PASTE AND COSTS ABOUT 40 MORE THAN REGULAR COLGATE CAUGHT THE COMPANY BY SURPRISE COLGATE HAS MANAGED A FEW PACKAGING INNOVATIONS IN RECENT YEARS INCLUDING AN UPSIDEDOWNTUBE THAT RESTS ON ITS CAP BUT HAS FOLLOWED THE LEAD OF P&G AND CHURCH & DWIGHT CO IN SUCH INNOVATIONS AS TARTAR CONTROL AND BAKING SODA FORMULATIONS COLGATE'S IMAGE IS A TRADITIONAL DENTIFRICE THAT DOES THE BASICS AT A REASONABLE PRICE SAYS DAVID EDELMAN A PARTNER AT BOSTON CONSULTING GROUP I DON'T SEE IT AS HAVING A DISTINCTIVE EDGE OR A CONTINUOUS STREAM OF INNOVATION THAT KEEPS ME EXCITED AND INTERESTED IN THE PRODUCT ANALYSTS LINK SOME OF COLGATE'S RECENT MARKETING MISSTEPS TO THE SHARP BOTTOMLINE FOCUS OF ITS CHAIRMAN AND CHIEF EXECUTIVE REUBEN MARK TO REACH ITS AMBITIOUS TARGET OF 15 ANNUAL EARNINGS GROWTH COLGATE HAS SLASHED MARKETING SPENDING LAST YEAR COLGATE SPENT 888 MILLION ON MEDIA ADVERTISING COMPARED WITH 975 MILLION IN 1992 ACCORDING TO COMPETITIVE MEDIA REPORTING WHICH TRACKS AD SPENDING MEANWHILE THE COMPANY HAS TRIMMED ITS DOMESTIC WORK FORCE 18 TO 3274 OVER THE PAST 10 YEARS WALL STREET WHICH HAS CHAMPIONED COLGATE AND MR MARK FOR YEARS IS GROWING SKEPTICAL COLGATE'S 1993 RESULTS MET MR MARK'S FORECAST OF A 15 INCREASE IN PERSHARE EARNINGS AND THE COMPANY IS EXPECTED TO ANNOUNCE A SIMILAR INCREASE FOR FIRST QUARTER EARNINGS TOMORROW BUT SOME ANALYSTS WORRY THAT THE COMPANY MAY BE SACRIFICING LONGTERM GROWTH IN THE US AND COLGATE'S SHARES NOW HOVER JUST ABOVE 57 LESS THAN THEY DID AT THIS TIME LAST YEAR YOU CAN ONLY GET SO MUCH PROFITABILITY WHILE MARKET SHARES FALTER SAYS ANDREW SHORE ANALYST AT PAINEWEBBER INC ADDS LYNNE R HYMAN AN ANALYST WITH FIRST BOSTON CORP ALL THEIR EARNINGS GROWTH IS COMING FROM COST REDUCTIONS MR MARK SHRUGS OFF SUCH CRITICISM THOUGH HE SAYS COLGATE IS CONCERNED ABOUT LOWER MARKET SHARES IN SOME CATEGORIES LAST YEAR HE SAYS THE COMPANY IS CONFIDENT CORPORATE EARNINGS WILL CONTINUE TO GROW A COMPANY SPOKESMAN ADDS THAT MARKET SHARES IN THE MAJORITY OF COLGATE'S CATEGORIES HAVE IMPROVED SINCE THE FOURTH QUARTER OF LAST YEAR COLGATE IS NOW TRYING TO REGAIN MOMENTUM BY JACKING UP ITS TOTAL MARKETING SPENDING THE COMPANY HAS VOWED TO BOOST WORLDWIDE SPENDING 25 AND THE INCREASE IN US MEDIA SPENDING IS EXPECTED TO BE EVEN GREATER THE COMPANY HAS RELAUNCHED ITS VENERABLE IRISH SPRING SOAP ADDING AN ANTIBACTERIAL INGREDIENT AND HAS SPRUCED UP ITS SPEED STICK WITH UPDATED PACKAGING COLGATE SAYS IT HAS ALSO ACCELERATED PLANS FOR PRODUCT LAUNCHES ALTHOUGH COMPANY EXECUTIVES WON'T GIVE SPECIFICS BUT INDUSTRY EXECUTIVES ARE SKEPTICAL THAT THE MOVES WILL SIGNIFICANTLY BOOST MARKET SHARES MR MARK REMAINS UNDAUNTED HE NOTES THAT COLGATE MAINTAINS A STRONG PRESENCE IN THE VALUEADDED LIQUID SOAP MARKET WITH ITS SOFTSOAP BRAND WHAT'S MORE HE SAYS SOME 30 OF COLGATE'S SALES ARE GENERATED BY PRODUCTS THAT HAVE BEEN LAUNCHED IN THE PAST THREE YEARS WE HAVE AGGRESSIVE PLANS FOR ACCELERATED NEW PRODUCT LAUNCHES AROUND THE WORLD HE SAYS AND THAT INCLUDES THE US 9404190104 940419 MICROSOFT POSTS SURPRISING 38 JUMP IN ITS THIRDPERIOD PROFIT BEFORE CHARGE BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL MICROSOFT CORP ONCE AGAIN CONFOUNDING EXPECTATIONS THAT ITS GROWTH WILL BEGIN TO SLOW SHARPLY REPORTED A 38 JUMP IN FISCAL THIRDQUARTER PROFIT BEFORE A SPECIAL CHARGE EARNINGS AFTER THE CHARGE ROSE ONLY 53 THE REDMOND WASH SOFTWARE GIANT BEAT MOST ANALYSTS' EXPECTATIONS AND POSTED NET INCOME IN THE QUARTER ENDED MARCH 31 OF 256 MILLION OR 84 CENTS A SHARE UP FROM 243 MILLION OR 80 CENTS A SHARE IN THE YEAREARLIER QUARTER REVENUE JUMPED 30 THE EARNINGS INCLUDE THE ONETIME PREVIOUSLY ANNOUNCED PRETAX CHARGE OF 120 MILLION WITHOUT THE CHARGE MICROSOFT'S NET WOULD HAVE BEEN 336 MILLION OR 111 A SHARE CONSIDERABLY ABOVE ANALYSTS' MEAN ESTIMATE OF 1 A SHARE FOR THE QUARTER THIRDQUARTER REVENUE WAS A RECORD 124 BILLION UP FROM 958 MILLION IN THE YEAREARLIER QUARTER THE RESULTS ANNOUNCED AFTER THE MARKET CLOSED COULD BRING MICROSOFT'S STOCK OUT OF ITS RECENT DOLDRUMS SAID ANALYST DAVID READERMAN OF LEHMAN BROS IF THE WORLD DOESN'T FALL APART TONIGHT THE STOCK SHOULD OPEN UP STRONG AND WORK ITS WAY UP TO THE HIGH 80S AND LOW 90S HE SAID AFTER TRADING AS HIGH AS 98 LAST YEAR MICROSOFT'S STOCK HAS DRIFTED LOWER CLOSING YESTERDAY AT 83 A SHARE DOWN 1875 OR 22 ON THE NASDAQ STOCK MARKET IN AFTERHOURS TRADING THE STOCK WAS CHANGING HANDS AT 85 A SHARE ACCORDING TO INSTINET REUTERS HOLDINGS PLC'S AFTERHOURS TRADING SYSTEM MICROSOFT ATTRIBUTED ITS RESULTS IN PART TO STRONG SALES OF THE NEW VERSION OF ITS EXCEL SPREADSHEET IT ALSO CITED STRONG SALES OF MICROSOFT OFFICE A SUITE PROGRAM THAT BUNDLES WORD PROCESSING SPREADSHEET GRAPHICS AND OTHER CAPABILITIES BY SELLING SUCH SUITES TO CUSTOMERS MICROSOFT AND ARCHRIVAL LOTUS DEVELOPMENT CORP HAVE IN EFFECT BEGUN CROWDING OUT MAKERS OF INDIVIDUAL PROGRAMS MICROSOFT'S RESULTS ALLAY RECENT FEARS AMONG INVESTORS THAT ITS NEW PRODUCTS MAY NOT BE ABLE TO SUSTAIN THE KIND OF REVENUE GROWTH MICROSOFT HAS SEEN SAID ANALYST PETER ROGERS OF ROBERTSON STEPHENS & CO WHO HAD EXPECTED THE COMPANY TO REPORT NET OF 97 CENTS A SHARE BEFORE THE CHARGE MOREOVER THE RESULTS RECONFIRM THAT THE LEADERSHIP OF THE INDUSTRY IS CONSOLIDATING AROUND MICROSOFT AND LOTUS HE SAID MICROSOFT'S RESULTS BELIE CONSTANT WARNINGS FROM ANALYSTS AND FROM MICROSOFT EXECUTIVES THAT THE COMPANY CAN'T SUSTAIN HISTORIC PROFIT MARGINS AND REVENUEGROWTH LEVELS THE COMPANY'S OPERATING MARGINS IN THE QUARTER ARE AT AN ALLTIME HIGH MR ROGERS SAID ADDING THAT THE FACT THAT MARGINS ARE GOING UP IS A SURPRISE THE PROFIT GROWTH IS A SIGN THAT MICROSOFT'S EFFORTS TO CUT EXPENSE GROWTH ARE WORKING SAID MR READERMAN THE ANALYST YOU'RE STARTING TO SEE GREATER EFFICIENCIES ON THE SALES AND MARKETING SIDE AS PREVIOUSLY ANNOUNCED MICROSOFT TOOK A 120 MILLION CHARGE IN THE QUARTER TO ACCOUNT FOR A FEDERAL JURY VERDICT FOR THAT AMOUNT AGAINST MICROSOFT IN A PATENT FEUD WITH SOFTWARE MAKER STAC ELECTRONICS 9404190103 940419 MARKETING & MEDIA TIME WARNER POSTS 54 MILLION LOSS FOR FIRST QUARTER BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TIME WARNER INC'S FIRSTQUARTER NET LOSS NARROWED TO 54 MILLION FROM 124 MILLION A YEAR EARLIER BUT THE LATEST RESULTS REFLECTED A SHARP DECLINE IN EARNINGS FROM CABLETELEVISION OPERATIONS AS A RESULT OF FEDERALLY MANDATED CABLE RATE CUTBACKS THE YEAREARLIER LOSS CAME AFTER PAYMENT OF PREFERRED STOCK DIVIDENDS WHICH WERE SUBSTANTIALLY ELIMINATED IN THE LATEST QUARTER AS A RESULT OF RESTRUCTURING OF THE TIME WARNDER'S BALANCE SHEET THE PERSHARE LOSS TOTALED 14 CENTS COMPARED WITH THE YEAREARLIER 33 CENTS TOTAL REVENUE CLIMBED 64 TO 349 BILLION FROM 328 BILLION TIME WARNER'S CASH FLOW OR ITS EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION TOTALED 639 MILLION UP 1 FROM THE YEAREARLIER 632 MILLION ANALYSTS OFTEN USE THE CASH FLOW FIGURES AS A MEASURE OF THE COMPANY'S PERFORMANCE BECAUSE ITS HIGH DEBT LOAD AND GOODWILL PREVENT IT FROM POSTING EARNINGS TIME WARNER'S RESULTS REFLECTED THE CONTRIBUTION OF THE COMPANY'S MAJORITYOWNED TIME WARNER ENTERTAINMENT CO WHICH SEPARATELY REPORTED A SHARP DECLINE IN FIRSTQUARTER PROFIT TO 41 MILLION FROM 94 MILLION THE UNIT INCLUDES THE OPERATIONS OF THE HOME BOX OFFICE PAYTV UNIT THE WARNER BROS FILM STUDIO AND TIME WARNER CABLE TIME WARNER ENTERTAINMENT IS 255 OWNED BY U S WEST INC ITOCHU CORP AND TOSHIBA CORP OWN A TOTAL OF 116 COMBINED CASH FLOW FOR THE THREE TIME WARNER ENTERTAINMENT OPERATIONS ROSE 14 TO 422 MILLION FROM THE YEAREARLIER 416 MILLION THE CABLE OPERATION'S CASH FLOW FELL 43 REFLECTING THE CABLE RATE CUTBACK THAT BECAME EFFECTIVE LAST SEPTEMBER THE IMPACT OF ADDITIONAL RATE REGULATIONS IN MARCH HASN'T BEEN CALCULATED THE COMPANY NOTED HBO WARNER BROS AND MAGAZINE PUBLISHING OPERATIONS POSTED DOUBLEDIGIT GAINS IN CASH FLOW CASH FLOW FROM TIME WARNER'S MUSIC OPERATIONS DROPPED 8 REFLECTING A DROP IN US RECORD SALES AND LOSSES FROM STARTUP VENTURES IN CABLE MUSIC PROGRAMMING AND DIRECT MARKETING IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY TIME WARNER SHARES FELL 25 CENTS TO 36875 9404190102 940419 MARKETING & MEDIA ADVERTISING TIME WARNER UNIT REWRITES RULES ON BOOK PROMOTIONS FOR THRILLER BY KEVIN GOLDMAN PUBLISHER LITTLE BROWN HARDLY HESITATED BEFORE PAYING A RECORD 2 MILLION FOR THE INTERNATIONAL THRILLER THE DAY AFTER TOMORROW EVEN THOUGH ITS AUTHOR HAD NEVER WRITTEN A NOVEL BEFORE AND WAS BOMBING AS A SCREENWRITER FOR ONE THING THE MANUSCRIPT HAS AN IRRESISTIBLE PLOT AN AMERICAN SURGEON SITTING AT A PARIS CAFE SPOTS THE MAN WHO KILLED HIS FATHER WHEN THE DOCTOR WAS A BOY OF 10 HE LUNGES AT THE MAN WHO THEN ELUDES HIM IN THE PARIS METRO AND THE CHASE IS ON NOW COMES THE HARD PART FOR LITTLE BROWN THE NEW YORK PUBLISHER MUST CONVINCE THE PUBLIC TO INVEST 2495 TO READ THE 608PAGE TOME BY A TOTAL UNKNOWN 52YEAROLD ALLAN FOLSOM WHOSE PREVIOUS CLAIM TO FAME WAS WINNING A SOCIETY OF CINEMATOLOGISTS AWARD IN 1963 FOR TWO HOURS AT JUAREZ A SCRIPT HE WROTE WHILE ATTENDING BOSTON UNIVERSITY SO LITTLE BROWN IS COUNTING ON AN AGGRESSIVE TELEVISION AND PRINT ADVERTISING CAMPAIGN TO DO THE TRICK AN UNUSUAL MOVE CONSIDERING THAT PUBLISHERS ARE NOTORIOUSLY STINGY WHEN IT COMES TO PROMOTING THEIR BOOKS UNLESS A BOOK IS WRITTEN BY A SURESHOT BESTSELLING AUTHOR SUCH AS STEPHEN KING OR DANIELLE STEEL THE BOOK INDUSTRY PREFERS TO RELY ON REVIEWS AND WORD OF MOUTH TV ADS HAVE BEEN RARE IN PART BECAUSE PUBLISHERS DON'T THINK THEY'RE A COSTEFFECTIVE MEDIUM LITTLE BROWN A UNIT OF TIME WARNER PRODUCED A 15SECOND TELEVISION COMMERCIAL THAT WILL BE SEEN TOMORROW AND THURSDAY IN NEW YORK LOS ANGELES CHICAGO AND WASHINGTON ON NETWORK MORNING NEWS PROGRAMS LOCAL NEWSCASTS AND SHOWS SUCH AS JEOPARDY AND THE TONIGHT SHOW WITH JAY LENO THE AD WAS PRODUCED BY THE PUBLISHER'S NEW YORK AD AGENCY FRANKLIN SPIER LITTLE BROWN ALSO RAN FULLPAGE ADS IN TIME AND ENTERTAINMENT WEEKLY WHICH GAVE DISCOUNT AD RATES TO THEIR SISTER TIME WARNER PUBLISHING SUBSIDIARY AS IS ROUTINE THE STAKES ARE HIGH SAYS AMY RHODES MARKETING DIRECTOR AT LITTLE BROWN NOT ONLY DID THE PUBLISHER PAY A RECORD SUM FOR A FIRST NOVEL THE PREVIOUS RECORD WAS FOR DESTINY FOR WHICH BANTAM BOOKS A UNIT OF BERTELSMANN PAID 125 MILLION IN 1987 BUT IT ALSO ORDERED AN INITIAL PRINTING OF 275000 COPIES AN UNUSUALLY HEFTY NUMBER FOR AN UNKNOWN AUTHOR LITTLE BROWN HOPES TO REPEAT THE SUCCESS IT HAD LAST YEAR WITH ANOTHER TVMARKETED THRILLER ALONG CAME A SPIDER BY JAMES PATTERSON MR PATTERSON WHO HAPPENS TO BE THE CHAIRMAN OF WPP GROUP'S J WALTER THOMPSON NORTH AMERICA OBLIGINGLY PRODUCED THE TV SPOT FOR HIS BOOK NO SUCH LUCK THIS TIME THE FRANKLIN SPIER EFFORT IS A MEDIOCRE COMMERCIAL AT BEST PROMISING THE HOTTEST THRILLER OF THE YEAR A BLAZING DRAMA OF INTERNATIONAL INTRIGUE THE BOOK'S SUCCESS ACCORDING TO MS RHODES HINGES ON THE FIRST CHAPTER SO A TWOPAGE PRINT AD WAS DESIGNED REPRINTING THAT CHAPTER IN ITS ENTIRETY PLANS WERE SET FOR THE AD TO RUN IN PEOPLE MAGAZINE TO PROMOTE THE BOOK'S APPEARANCE IN STORES THE DAY AFTER TOMORROW PEOPLE ARRIVES ON MOST NEWSTANDS ON MONDAYS AND THE BOOK WAS TO BE DISPLAYED BEGINNING ON A WEDNESDAY BUT THE AD WAS TWO PAGES OF SOLID TYPE AND IT LOOKED DEADLY DULL SAYS MS RHODES AN ALTERNATIVE ONEPAGE AD WAS PRODUCED FEATURING THE NOVEL'S FIRST 3 1/2 SENTENCES ON A PAGE DESIGNED TO APPEAR AS IF IT WAS SINGED ALSO INCLUDED WERE FIVE SENTENCES THAT SPAN THE NOVEL'S FARFLUNG LOCALES INCLUDING GENEVA AND NEW MEXICO WE WERE ABLE TO INCLUDE EIGHT INTERWOVEN PLOT LINES MS RHODES SAYS THE BOOK'S TIMING IS FAVORABLE BECAUSE THERE AREN'T ANY MAJOR NOVELS CLAMORING FOR ATTENTION ACCORDING TO MS RHODES HOWEVER RANDOM HOUSE A UNIT OF ADVANCE PUBLICATIONS RECENTLY PUBLISHED CALEB CARR'S FASTSELLING THE ALIENIST ABOUT A SERIAL MURDERER IN 1880S NEW YORK IN ADDITION OTHER NOVELS VYING FOR ATTENTION INCLUDE K IS FOR KILLER BY SUE GRAFTON AND REMEMBER ME BY MARY HIGGINS CLARK THE DAY AFTER TOMORROW HAS RECEIVED MIXED NOTICES THE LOS ANGELES TIMES IN A FRONTPAGE REVIEW IN ITS SUNDAY BOOK SECTION APRIL 10 RAVED TIME MAGAZINE WEIGHED IN WITH A NEGATIVE REVIEW AND ENTERTAINMENT WEEKLY GAVE THE NOVEL A CMINUS BUT THE BUZZ AND WHO KNOWS PERHAPS THE ADS SEEM TO BE WORKING THE DAY AFTER TOMORROW LANDED ON THE WALL STREET JOURNAL'S BESTSELLER LIST AS NO 4 LAST WEDNESDAY AND IS EXPECTED TO SHOW CONTINUED STRONG SALES WHEN THE NEW LIST IS RELEASED TOMORROW AND IT WILL SHOW UP AS NO 3 ON THE NEW YORK TIMES BESTSELLER LIST APRIL 24 I CAN'T TELL HOW MUCH EFFECT THE ADVERTISING IS HAVING SAYS MS RHODES WE'LL HAVE TO WAIT AND SEE IF THE BOOK STORES SELL OUT OF THEIR STOCK AND THEN REEVALUATE WHETHER WE'RE GOING TO CONTINUE TO ADVERTISE MR FOLSOM IS ON AN OVERSEAS TOUR SAYS A LITTLE BROWN SPOKESWOMAN AND COULDN'T BE REACHED FOR COMMENT BUT MS RHODES SAYS THE AUTHOR HAD ONE REACTION TO THE TELEVISION COMMERCIAL HE WONDERED WHY IT WAS SO SHORT NOT THAT HE WASN'T GRATEFUL OR ANYTHING BUT 15 SECONDS DOES GO BY QUICKLY IF THAT IS MR FOLSOM'S MAJOR CONCERN TIMES CERTAINLY HAVE CHANGED FOR THE FORMERLY STRUGGLING SCREENWRITER WHO ONCE BOASTED OF WRITING A HART TO HART EPISODE THE FILM RIGHTS HAVE BEEN SOLD FOR 750000 WITH A PROVISION THAT IF THE FILM IS MADE HE WILL RECEIVE ANOTHER 750000 HE ALSO GETS TO WRITE THE SCRIPT NOW THAT IT IS A BEST SELLER THE BOOK IS UNLIKELY TO RECEIVE FURTHER AD SUPPORT INSTEAD THE PUBLICITY MACHINE CAN ACCOMPLISH MUCH AT A FRACTION OF THE COST IT TAKES TO ADVERTISE THE NEXT STEP WHO KNOWS PERHAPS MR FOLSOM CAN BECOME A CELEBRITY ENDORSER AFTER A TWOMONTH REVIEW NEC TECHNOLOGIES THE NORTH AMERICAN SUBSIDIARY OF JAPAN'S NEC AWARDED ITS 35 MILLION ACCOUNT TO HOUSTON EFFLER & PARTNERS IN BOSTON THE ACCOUNT PREVIOUSLY WAS HELD BY OMNICOM GROUP'S DDB NEEDHAM OTHER FINALISTS WERE HILL HOLLIDAY CONNORS COSMOPULOS BOSTON THE CHICAGO OFFICE OF SAATCHI & SAATCHI'S CAMPBELL MITHUN ESTY AND WPP GROUP'S J WALTER THOMPSON NEW YORK NUTRASWEET CO MOVED ITS ESTIMATED 13 MILLION SPOONFUL ADVERTISING BACK TO THE CHICAGO OFFICE OF WPP GROUP'S OGILVY & MATHER THE PREVIOUS AGENCY WAS CHIAT/DAY OF VENICE CALIF OGILVY WHICH INTRODUCED THE NUTRASWEET BRAND IN THE 1980S WAS SHAKEN IN 1990 TO LOSE THE BIG NUTRASWEET ACCOUNT TO CHIAT BUT NOW OGILVY HAS WOOED THE BUSINESS BACK REPEATING ON A SMALLER SCALE THE FEAT IT PULLED OFF BY WINNING AMERICAN EXPRESS'S CHARGECARD BUSINESS BACK FROM CHIAT IN 1991 OGILVY IS ALSO THE AGENCY FOR NUTRASWEET'S EQUAL BRAND BOB KUPERMAN PRESIDENT OF CHIAT/DAY SAID THE AGENCY WOULD REMAIN A RESOURCE TO NUTRASWEET OFFICIALS AT NUTRASWEET COULDN'T BE REACHED COMPAQ COMPUTER IS YANKING THE LOGO THAT SHOWS IT USES INTEL'S MICROPROCESSORS IN ITS PERSONAL COMPUTERS THAT'S BECAUSE COMPAQ HAS BEEN USING MICROPROCESSORS PRODUCED BY ONE OF INTEL'S COMPETITORS ADVANCED MICRO DEVICES SINCE JANUARY IN ADDITION TO PULLING STICKERS OFF OF COMPUTERS COMPAQ IS PULLING THE INTEL LOGO OUT OF SOME PRINT AND TELEVISION ADS COMPAQ SAYS THE MOVE IS LIMITED TO ONLY A FEW LINES OF COMPUTERS STILL IT IS A BLOW TO INTEL WHICH HAD CREATED A BRAND LOYALTY FOR ITS CHIP BY PERSUADING COMPUTER MAKERS TO ADVERTISE IT ALONG WITH THEIR PRODUCTS 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 9404190101 940419 CORPORATE FOCUS SGSTHOMSON PROSPERS DESPITE IMPROBABLE BEGINNING FRANCOITALIAN SEMICONDUCTOR MAKER CHALLENGES MARKET LEADER INTEL BY RICHARD L HUDSON AND PETER GUMBEL STAFF REPORTERS OF THE WALL STREET JOURNAL LONDON WHEN SGSTHOMSON MICROELECTRONICS NV WAS CREATED IN 1987 IT SOUNDED LIKE A RECIPE FOR INDUSTRIAL DISASTER TAKE TWO MONEYLOSING SEMICONDUCTOR COMPANIES MERGE THEM AND THEN PUT A BUNCH OF POLITICIANS FROM TWO DIFFERENT COUNTRIES IN CHARGE BUT SEVEN YEARS LATER WHAT'S THE IMPROBABLE RESULT THE FRANCOITALIAN VENTURE IS IN THE BLACK AND AIMS TO BECOME THE LATEST CHALLENGER TO INTEL CORP'S GRIP ON THE WORLD MICROPROCESSOR MARKET SGSTHOMSON ANNOUNCED PLANS FRIDAY TO MARKET CLONES WORLDWIDE OF INTEL'S BIGGESTSELLING 486 CHIPS THE SILICON BRAINS INSIDE MOST PERSONAL COMPUTERS SOLD TODAY TO MAKE THE CHIPS IT WILL SPEND HUNDREDS OF MILLIONS OF DOLLARS UPGRADING A PLANT IN PHOENIX A COMPANY SPOKESMAN SAID THE ANNOUNCEMENT WHICH HAD BEEN WIDELY EXPECTED IN THE INDUSTRY CONFIRMS SGSTHOMSON'S PLACE ON A GROWING LIST OF INTEL CHALLENGERS INCLUDING INTERNATIONAL BUSINESS MACHINES CORP WHICH UNVEILED PLANS LAST THURSDAY TO CLONE INTEL'S TOPOFTHELINE PENTIUM CHIP THAT'S WELCOME NEWS TO THE WORLD'S PC MAKERS WHICH TYPICALLY HAND OVER TO INTEL 10 TO 15 OF THE VALUE OF EVERY PC THEY SELL THE MORE COMPETITION THE BETTER WAS THE OFFTHECUFF REACTION OF THEO LIEVEN CHIEF EXECUTIVE OF THE BIGGEST GERMAN PCMAKER VOBIS MICROCOMPUTER AG BUT AT INTEL'S SANTA CLARA CALIF HEADQUARTERS A SPOKESMAN SAID SIMPLY COMPETITION IS NOTHING NEW TO US CERTAINLY GIVEN INTEL'S TECHNOLOGICAL STRENGTH AND MARKET CLOUT SGSTHOMSON'S PLAN IS FRAUGHT WITH RISK BUT THE MERE FACT THAT IT'S CHALLENGING THE ACKNOWLEDGED KING OF MICROPROCESSORS IS EVIDENCE OF HOW FAR THIS UNUSUAL FRANCOITALIAN EXERCISE IN STATE CAPITALISM HAS COME IN SEVEN YEARS THOUGH NO INDUSTRY POWERHOUSE IT RANKS 13TH AMONG WORLD SEMICONDUCTOR MAKERS WITH A 24 MARKET SHARE ACCORDING TO MARKETRESEARCH FIRM DATAQUEST INC SGSTHOMSON HAS CONFOUNDED INDUSTRY CASSANDRAS LATELY AFTER ACCUMULATING LOSSES OF NEARLY 467 MILLION FROM 1987 THROUGH 1991 IN 1992 IT SQUEAKED INTO THE BLACK WITH A 3 MILLION PROFIT ON SALES OF 16 BILLION LAST YEAR ITS PROFIT SOARED TO 160 MILLION ON A 27 SALES GAIN TO 204 BILLION AND SO FAR IN 1994 PROFIT IS AT LEAST AS GOOD AS LAST YEAR THE SGSTHOMSON SPOKESMAN SAYS THROUGH SEVEN HARD YEARS OF REORGANIZATION THEY'VE BUILT UP THEIR STRENGTH CLEANED UP THEIR PRODUCT PORTFOLIO AND BUILT LEADINGEDGE MANUFACTURING FACILITIES IN THE US SINGAPORE AND EUROPE SAYS BIPIN PARMAR A DATAQUEST ANALYST PLENTY STILL COULD GO WRONG THE COMPANY NEEDS TO RAISE MORE CASH FOR INVESTMENT AND ITS CAREFULLY LAID EXPANSION PLANS COULD GET DERAILED NEXT YEAR IF AS SOME ANALYSTS FORECAST WORLD SEMICONDUCTOR SALES SOFTEN BUT RIGHT NOW THEY'RE ON A REAL HIGH MR PARMAR SAYS THAT'S A RARE PIECE OF GOOD NEWS FROM A GENERALLY DEPRESSED EUROPEAN ELECTRONICS SECTOR IN SEMICONDUCTORS AS SGSTHOMSON HAS GROWN THE REST OF THE EUROPEAN INDUSTRY HAS BEEN RETRENCHING OVERALL THE WESTERN EUROPEAN CHIP INDUSTRY SINCE 1982 HAS MANAGED ONLY TO MAINTAIN ITS WEAK GLOBAL POSITION WITH A ROUGHLY 10 SHARE OF THE WORLD SEMICONDUCTOR MARKET SGSTHOMSON'S IMPROVING FORTUNES STEM FROM THREE UNIQUE FACTORS GOOD LUCK IN A BOOMING WORLDWIDE SEMICONDUCTOR MARKET SOME WELLTIMED INVESTMENTS FROM ITS FRENCH AND ITALIAN STATE SHAREHOLDERS AND A STRONG CHIEF EXECUTIVE OFFICER PASQUALE PISTORIO A 17YEAR VETERAN OF SCHAUMBERG ILLBASED MOTOROLA INC MR PISTORIO'S STRATEGY LAID OUT IN A 1987 PLAN TO MERGE ITALY'S SGS MICROELETTRONICA SPA AND THE CHIP BUSINESS OF FRANCE'S THOMSON SA ENTAILED INCREASING THE COMBINED BUSINESSES' LOW PRODUCTIVITY CLOSING DUPLICATIVE FACTORIES AND MOVING PRODUCTION TO LOWWAGE ASIAN COUNTRIES WHERE 50 OF THE COMPANY'S EMPLOYEES ARE BASED NOW HE ALSO STRENGTHENED RELATIONS WITH KEY CUSTOMERS BY FORGING SCORES OF ALLIANCES IN SPECIFIC PRODUCT LINES WITH SUCH BIG CHIPBUYERS AS JAPAN'S SONY CORP THIRD HE MOVED TO END THE COMPANY'S PAROCHIAL FOCUS ON EUROPEAN SALES THE RESULTS SINCE 1987 THE SALES MIX HAS SWUNG TO 52 OUTSIDE EUROPE FROM JUST 38 ABROAD PRODUCTIVITY HAS RISEN AN AVERAGE 15 A YEAR TO 115000 OF SALES PER EMPLOYEE IN SOME PRODUCT LINES SUCH AS HIGHVOLTAGE CHIPS AND SOCALLED ERASABLE PROGRAMMABLE READONLYMEMORY CHIPS SGSTHOMSON IS NOW THE WORLD'S BIGGEST MANUFACTURER TO GET THERE IT GOT LOTS OF GOVERNMENT HELP ITS MANUFACTURING TECHNOLOGY WAS SHARPENED BY PARTICIPATION IN EUROPE'S JESSI PROGRAM A STATESUBSIDIZED ORGANIZATION OF SEMICONDUCTOR MAKERS AND USERS FORMED TO HONE CHIP TECHNOLOGIES AND LAST YEAR ITS FRENCH AND ITALIAN STATE SHAREHOLDERS INJECTED 500 MILLION IN THE FORM OF AN EQUITY INVESTMENT WHICH IT USED TO PAY OFF MUCH OF ITS CRIPPLING BANK DEBT LARGELY BECAUSE THE CASH CAME AFTER THE COMPANY HAD ALREADY BROKEN INTO BLACK INK THE EUROPEAN UNION COMMISSION CLEARED THE REFINANCING AS A LEGAL COMMERCIAL INVESTMENT BY STATE SHAREHOLDERS RATHER THAN AN ILLEGAL STATE SUBSIDY FOR THE SAME REASON NONE OF ITS US OR JAPANESE COMPETITORS HAVE YET RAISED A POLITICAL FUSS ABOUT IT BUT THAT COULD CHANGE THANKS TO THE COMPANY'S HIGHPROFILE PLAN TO CHALLENGE INTEL TO INDUSTRY INSIDERS SGSTHOMSON ALREADY IS KNOWN AS A CLOSET CLONEMAKER LIKE IBM IT HAS BEEN QUIETLY CHURNING OUT INTELCOMPATIBLE CHIPS DESIGNED BY RICHARDSON TEXASBASED CYRIX CORP AN ESTABLISHED INTEL CHALLENGER SGSTHOMSON STAMPS OUT THE CHIPS IN A SOCALLED SILICON FOUNDRY OPERATION AT ITS CARROLLTON TEXAS FACTORY CYRIX PACKAGES AND MARKETS THE CHIPS UNDER ITS OWN NAME BUT FRIDAY'S ANNOUNCEMENT CONFIRMS THAT THE FRANCOITALIAN COMPANY IS ENTERING THE CLONE MARKET IN ITS OWN RIGHT RATHER THAN JUST FILLING ORDERS FROM CYRIX IT WILL EXPAND PRODUCTION AND START MARKETING THE CYRIXDESIGNED CHIPS UNDER ITS OWN NAME THAT'S AN IMPORTANT DIFFERENCE IN THE CHIP BUSINESS IMPLYING BIGGER SALES INTEL SHAREHOLDERS NEEDN'T PANIC YET CYRIX'S ENTIRE SALES LAST YEAR WERE A FRACTION OF INTEL'S AND ALTHOUGH THE CYRIX DESIGNS RUN THE SAME SOFTWARE AS INTEL CHIPS INTEL MAINTAINS THAT THE CLONES LACK SOME OF THE NUMBERCRUNCHING FEATURES OF THE ORIGINALS ON ANY GIVEN PRODUCT COMPARISON WE'LL STAND BY OUR PERFORMANCE THE INTEL SPOKESMAN SAID MOREOVER SGSTHOMSON IS ENTERING AN INCREASINGLY CROWDED MARKET FOR THE 486 CHIP A FIVEYEAROLD DESIGN THAT SOME INTEL RIVALS HAVE BEEN CLONING FOR A YEAR TO STAY IN THE GAME LONGTERM SGSTHOMSON EVENTUALLY WILL HAVE TO SELL A CHIP THAT CAN COMPETE WITH PENTIUM INTEL'S LATESTGENERATION CHIP WHEN ASKED ABOUT ITS PLANS A SPOKESWOMAN SAID SGSTHOMSON CAN MAKE CYRIXDESIGNED PENTIUM CLONES IF IT CHOOSES UNDER ITS EXISTING AGREEMENT TO USE CYRIX DESIGNS BUT SHE SAID THE COMPANY HADN'T YET DECIDED WHETHER TO DO SO 9404190100 940419 BUSINESS BRIEF MALLON RESOURCES CORP PRIVATE PLACEMENT OF STOCK TO FINANCE DEBT RETIREMENT MALLON RESOURCES CORP SAID IT PRIVATELY PLACED 400000 SHARES OF NEWLY CREATED SERIES B PREFERRED STOCK GENERATING GROSS PROCEEDS OF 4 MILLION THE FIRST 2 MILLION OF NET PROCEEDS WILL BE USED TO RETIRE AN OBLIGATION CALLED A NET PROFITS INTEREST HELD BY ENRON RESERVE ACQUISITION CORP MALLON SAID REMAINING NET PROCEEDS WILL BE USED TO DRILL DEVELOPMENT WELLS AND ENGAGE IN OTHER PRODUCTION OPERATIONS ON THE NEW MEXICO PROPERTIES MALLON RECENTLY ACQUIRED THIS FINANCING SHOULD ENABLE THE COMPANY TO SIGNIFICANTLY INCREASE ITS CASH FLOW FROM OPERATIONS SAID GEORGE MALLON CHAIRMAN THE SERIES B PREFERRED STOCK BEARS AN 8 DIVIDEND AND IS CONVERTIBLE INTO SHARES OF MALLON COMMON AT A CONVERSION PRICE OF 425 A SHARE 9404190099 940419 BRIDGESTONE UNIT IS FINED 75 MILLION BY LABOR DEPARTMENT IN WORKER DEATH BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE LABOR DEPARTMENT FINED A BRIDGESTONE/FIRESTONE INC UNIT 75 MILLION IN CONNECTION WITH THE DEATH OF A WORKER CRUSHED IN A MACHINE IN OCTOBER CALLING THE TIRE MAKER'S ALLEGED INATTENTION TO SAFETY OFFENSIVE AND UNJUSTIFIABLE THE CITATION DELIVERED PERSONALLY BY LABOR SECRETARY ROBERT REICH TO OFFICIALS AT DAYTON TIRE IN OKLAHOMA CITY WAS DESIGNED IN PART TO HIGHLIGHT THE CAUSE OF 7 OF ALL DEATHS IN US WORKPLACES WORKERS' BEING KILLED IN MACHINERY UNDER FEDERAL REGULATIONS WORKERS CLEANING OR MAINTAINING MACHINES MUST BE TRAINED TO DISCONNECT MACHINES FROM THEIR POWER SOURCE SO THE EQUIPMENT CANNOT START UP ACCIDENTALLY THE PROCEDURE CALLED LOCKOUT/TAGOUT IS DESIGNED TO PREVENT OTHER WORKERS FROM RESTARTING MACHINES WHILE A WORKER IS INSIDE MR REICH SAID THAT BRIDGESTONE/FIRESTONE A UNIT OF JAPAN'S BRIDGESTONE CORP IS FLOUTING THE LOCKOUT/TAGOUT SAFETY STANDARD THIS COMPANY ABSOLUTELY REFUSED TO OBEY THE LAW HE SAID IN AN INTERVIEW WE'VE HAD A STREAM OF DEATHS AND MAIMINGS IN NASHVILLE A SPOKESMAN FOR THE COMPANY SAID THAT ALTHOUGH THE TIRE MAKER HASN'T YET STUDIED THE CHARGES IT WILL FIGHT THE LABOR DEPARTMENT FINES WE HAVE A SAFETY POLICY THAT IS STRICTLY ENFORCED HE SAID WE'RE VERY DISAPPOINTED THAT THEY'VE TAKEN THIS ACTION YESTERDAY'S FINES STEM FROM THE DEATH OF ROBERT JULIAN A 25YEAR EMPLOYEE WHOSE HEAD AND FACE WERE CRUSHED WHEN A TIREMAKING MACHINE HE WAS SERVICING ACCIDENTALLY RESTARTED WITH HIM INSIDE IT HE SUFFERED SEVERE HEAD INJURIES AND DIED SEVERAL DAYS LATER BEFORE THAT OCTOBER ACCIDENT MR REICH SAID THE IOWA STATE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION FINED THE COMPANY'S DES MOINES PLANT FOR SIMILAR LOCKOUT/TAGOUT VIOLATIONS MOREOVER SINCE THAT INCIDENT MR REICH SAID TWO WORKERS AT THE OKLAHOMA CITY PLANT HAVE SUFFERED INJURIES ONE A MANGLED ARM AND ANOTHER A BROKEN WRIST FROM MACHINES THAT STARTED THIS HAS GOT TO STOP HE SAID WE CAN'T TOLERATE COMPANIES THAT REFUSE TO OBEY THE LAW THE LABOR DEPARTMENT'S OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION FINED THE COMPANY THE MAXIMUM OF 70000 FOR EACH OF WHAT IT CALLED WILLFUL VIOLATIONS OF THE LAW OSHA CHIEF JOSEPH DEAR SAID IT WAS THE LARGEST LOCKOUT/TAGOUT PENALTY IN THE AGENCY'S HISTORY IN ADDITION THE LABOR DEPARTMENT TOOK THE UNUSUAL STEP OF ASKING THE FEDERAL DISTRICT COURT IN OKLAHOMA CITY TO ISSUE AN INJUNCTION ORDERING THE COMPANY TO ADHERE TO TIGHTER STANDARDS TO PROTECT THE 98 WORKERS THE AGENCY SAID ARE DIRECTLY IN DANGER A FEDERALCOURT RULING ON A TEMPORARY RESTRAINING ORDER IS EXPECTED TODAY THE COMPANY HAS 15 WORKING DAYS TO APPEAL THE OSHA CIVIL FINE TO THE INDEPENDENT OCCUPATIONAL SAFETY AND REVIEW COMMISSION THIS IS THE SECOND MAJOR LOCKOUT/TAGOUT CASE OF THE PAST TWO WEEKS RECENTLY GENERAL MOTORS CORP LOST ITS APPEAL OF A NEARLY 2 MILLION OSHA FINE IN CONNECTION WITH THE 1991 DEATH OF A WORKER IN THE AUTO MAKER'S OKLAHOMA CITY PLANT 9404190098 940419 AMERICA WEST DEAL IS FACING OBSTACLE OVER BREAKUP' FEE BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL AN INVESTMENT GROUP THAT APPEARED TO HAVE WON CONTROL OF AMERICA WEST AIRLINES SAID IT MAY NOW WALK AWAY FROM THE CARRIER BECAUSE A BANKRUPTCY JUDGE IN PHOENIX TURNED DOWN ITS REQUEST FOR A 4 MILLION TO 8 MILLION FEE IF THE TRANSACTION FALLS THROUGH A 2449 MILLION PROPOSAL FROM INVESTORS LED BY DAVID BONDERMAN AND JAMES COULTER OF FORT WORTH TEXAS HAD BEEN APPROVED BY AMERICA WEST'S SECURED AND UNSECURED CREDITOR COMMITTEES AND EQUITY COMMITTEE BUT US BANKRUPTCY JUDGE ROBERT MOOREMAN WHO HAS OVERSEEN THE CASE SINCE AMERICA WEST FILED FOR CHAPTER 11 PROTECTION FROM CREDITORS ALMOST THREE YEARS AGO SAID HE WOULDN'T APPROVE THE PROPOSAL BECAUSE IT INCLUDES A BREAKUP FEE THE PAYMENT WOULD HAVE GONE TO THE INVESTMENT GROUP AMWEST PARTNERS LP IF A RIVAL INVESTOR ULTIMATELY WON CONTROL OF THE AIRLINE WITH A HIGHER BID THE THREAT TO WALK AWAY FROM THE BUYOUT PROPOSAL COULD BE A NEGOTIATING PLOY BUT A SPOKESMAN FOR MR BONDERMAN SAID THE INVESTMENT GROUP IS REVIEWING ITS OPTIONS AND WOULD DECIDE TODAY OR TOMORROW ON WHETHER IT WILL CONTINUE TO PURSUE AMERICA WEST YOU PUT A TREMENDOUS AMOUNT OF TIME INTO A TRANSACTION LIKE THIS AND YOU GIVE UP OTHER OPPORTUNITIES THE SPOKESMAN SAID THERE MUST BE SOME COMPENSATION IF A DEAL MOVES AWAY THROUGH NO FAULT OF YOUR OWN BREAKUP FEES AREN'T UNUSUAL IN BANKRUPTCYLAW CASES IN FACT MESSRS BONDERMAN AND COULTER INCLUDED A SIMILAR BREAKUP FEE IN ITS PROPOSAL FOR CONTINENTAL AIRLINES WHEN THE HOUSTON WAS IN BANKRUPTCY COURT CONTINENTAL FLEW OUT OF CHAPTER 11 PROCEEDINGS LAST YEAR WITH MESSRS BONDERMAN AND COULTER ACQUIRING THE LARGEST EQUITY STAKE 28 BUT IN A RULING DISCLOSED YESTERDAY JUDGE MOOREMAN SAID THE FEE UNNECESSARILY CHILLS BIDDING FROM OTHER INVESTORS AND ISN'T IN THE BEST INTEREST OF THE ESTATE CREDITORS OR EQUITY HOLDERS IT WAS UNCLEAR WHETHER JUDGE MOOREMAN WOULD SUPPORT A LOWER FEE AMERICA WEST BASED IN PHOENIX SAID IT WAS DISCUSSING WHETHER IT WOULD APPEAL THE DECISION 9404190097 940419 WHEN MANAGEMENT GETS TOUGH THE TOUGH FORGE INTERNAL MEMOS BY SUZANNE ALEXANDER RYAN STAFF REPORTER OF THE WALL STREET JOURNAL WHEN A COMPANY ANNOUNCES PLANS TO LAY OFF 3000 PEOPLE AND CUT BACK ON PETTY EXPENSES SOME EMPLOYEES GET WORRIED OTHERS GET DEPRESSED OTHERS GET EVEN AFTER FLEET FINANCIAL GROUP INC WITH HEADQUARTERS IN PROVIDENCE RI ANNOUNCED SUCH COSTSAVING MEASURES AN UNKNOWN EMPLOYEE ISSUED A SPECIAL INTEROFFICE MEMORANDUM ON TRAVEL POLICY AND FAXED IT TO SOURCES INSIDE AND OUTSIDE THE BANK THE MEMO WHICH IS A CLEVER FORGERY ON FLEET LETTERHEAD AND BY NO MEANS REFLECTS ANYTHING OFFICIAL SAID NEW BUDGETARY CONSTRAINTS DICTATE THE FOLLOWING CHANGES IN TRAVEL POLICY WHEN ON THE ROAD EMPLOYEES WHO CAN'T IMPOSE ON FRIENDS OR RELATIVES FOR LODGING SHOULD CONSIDER BRIDGES AND OVERPASSES WHICH PROVIDE VERY GOOD PROTECTION FROM THE ELEMENTS AND OPPORTUNITIES TO MEET NEW FRIENDS AND FORM BUSINESS RELATIONSHIPS FOR TRANSPORTATION HITCHHIKING IS A VIABLE CONSIDERATION AND YOU WILL FIND A SIGN BOARD IN YOUR TRAVEL PACKAGE WHEN AIR TRAVEL IS ESSENTIAL PLEASE NOTE THAT DURING LAYOVERS IN THE AIRPORTS THERE IS AN OPPORTUNITY TO MAKE ADDITIONAL MONEY IN YOUR TRAVEL PACKAGE YOU WILL FIND A SKY CAP'S BADGE AND HAT PLEASE KEEP ACCURATE RECORDS ON FUNDS GENERATED AS FOR MEALS SALAD BARS ARE THE MOST EFFECTIVE AS ONE PLATE WILL SERVE FOUR PERSONS IF NO ONE IS WATCHING THE MEMO SAYS MANY GROCERY STORES OFFER FREE SAMPLES AND WITH CREATIVE DISGUISES YOU MAY BE ABLE TO OBTAIN A FULL MEAL PANHANDLING IS PERMITTED BUT NOT ENCOURAGED DUE TO THE POTENTIAL WORKMAN'S COMPENSATION CLAIMS FOR MUGGINGS FOR EMPLOYEES ATTENDING CONVENTIONS IN HOTELS VISITING OTHER NONFLEET MEETINGS AT MEAL TIME IS CERTAINLY ENCOURAGED THE MEMO SAYS A SELECTION OF NAME BADGES IS AVAILABLE IN THE NEW TRAVEL PACKAGE SO THAT YOU WILL BE ABLE TO GET BY ANY SECURITY FINALLY THE MEMO ADVISES NEVER PAY FOR A BUSINESS LUNCH REGARDLESS OF THE EMBARRASSMENT TO YOURSELF OR OTHERS CARRYOUT LUNCHES MAY BE PURCHASED AT FAST FOOD CENTERS SHOULD YOU NEED TO ENTERTAIN LOCALLY FLEET OFFICIALS DECLINED TO COMMENT ON THE MEMO BUT ONE FLEET EMPLOYEE WHO REQUESTED ANONYMITY SAID WITH RUMORS OF A POSSIBLE MERGER WITH BANK OF NEW YORK CO I GUESS FLEET WANTS TO BE AS EFFICIENT AS POSSIBLE 9404190096 940419 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 75 MILLION OF MULTIPLE STEPUP NOTES DUE MAY 3 1999 PRICED AT PAR TO YIELD 635 ACCORDING TO MCM CORPORATEWATCH THE NOTES STEP UP TO 67 MAY 3 1995 AND THEN TO 71 74 AND 76 IN CONSECUTIVE YEARS THE ISSUE IS NONCALLABLE FOR ONE YEAR AND WAS PRICED AT A SPREAD OF 49 BASIS POINTS ABOVE THE FIVEYEAR TREASURY THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP COLE NATIONAL CORP INITIAL PUBLIC OFFERING OF FIVE MILLION CLASS A COMMON SHARES PRICED AT 12 EACH THROUGH MERRILL LYNCH & CO EDUCATIONAL INSIGHTS INC INITIAL OFFERING OF 19 MILLION COMMON SHARES PRICED AT 10 EACH THROUGH UNDERWRITERS LED BY WILLIAM BLAIR & CO AGREE REALTY CORP INITIAL OFFERING OF 25 MILLION COMMON SHARES PRICED AT 1950 EACH THROUGH UNDERWRITERS LED BY RAYMOND JAMES & ASSOCIATES PENNSYLVANIA TURNPIKE COMMISSION 1125 MILLION OF SERIES A 1994 OILFRANCHISE TAX REVENUE BONDS PRICED BY UNDERWRITERS LED BY RRZ PUBLIC MARKETS INC YIELDS RANGE FROM 35 IN 1995 TO 639 IN 2019 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S RATINGS GROUP FEDERAL HOME LOAN MORTGAGE CORP 109 BILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT STRIPPED MORTGAGEBACKED SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING REMIC STRIP GS006 USES GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 30YEAR 75 MORTGAGE SECURITIES AND PORTIONS OF FREDDIE MAC REMIC SERIES G029 WHICH IN TURN IS BACKED BY GINNIE MAE 75S THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 8 AND WEIGHTED AVERAGE MATURITY OF 348 MONTHS PT ASTRA INTERNATIONAL INDONESIA 125 MILLION OF 975 EUROBONDS DUE APRIL 29 2001 AT ISSUE AND FIXED REOFFER PRICE 9990 VIA CHASE INVESTMENT BANK LTD AT FIXED REOFFER PRICE BONDS YIELD A SPREAD 300 BASIS POINTS OVER 8 US TREASURY OF MAY 2001 FEES ONE DAIICHI KANGYO AUSTRALIA LTD JAPANESE PARENT 60 MILLION OF FLOATING AND FIXEDRATE EUROBONDS DUE MAY 12 2004 AT ISSUE AND FIXED REOFFER PRICE 1003 VIA DKB INTERNATIONAL PLC INTEREST PAID SEMIANNUALLY AT 60 BASIS POINTS OVER SIXMONTH LONDON INTERBANK OFFERED RATE UNTIL MAY 12 1996 IF NOT CALLED AT PAR ON THAT DATE BONDS WILL CARRY ANNUAL COUPON 8 UNTIL MATURITY GUARANTOR DAIICHI KANGYO BANK LTD FEES 03 LONGTERM CREDIT BANK OF JAPAN LTD JAPAN 50 MILLION OF FLOATING AND FIXEDRATE EUROBONDS DUE MAY 12 2004 AT ISSUE PRICE 101 VIA LTCB INTERNATIONAL LTD INTEREST PAID SEMIANNUALLY AT 50 BASIS POINTS OVER SIXMONTH LIBOR UNTIL MAY 12 1997 IF BONDS NOT CALLED AT PAR ON THAT DATE BONDS WILL CARRY COUPON OF 83 UNTIL MATURITY THE BORROWER'S SENIOR DEBT OUTSTANDING IS RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P FEES TWO TOYOTA MOTOR CREDIT CORP JAPANESE PARENT 250 BILLION ITALIAN LIRE OF 8375 EUROBONDS DUE MAY 17 1999 AT ISSUE PRICE 101657 VIA DEUTSCHE BANK AG LONDON AND BANCA COMMERCIALE ITALIANA AT COMANAGERS' BREAKEVEN PRICE 99782 BONDS YIELD 843 FEES 1875 UNION EUROPEENE DE CIC FRANCE 200 MILLION OF FLOATINGRATE EURONOTES DUE MAY 6 1997 AT ISSUE AND FIXED REOFFER PRICE 9988 VIA KIDDER PEABODY SECURITIES CO INTEREST PAID QUARTERLY AT 0125 POINT OVER THREEMONTH LIBOR FEES 015 9404190095 940419 COMMODITIES EARLY RALLY BY PRECIOUS METALS FUTURES ENDS AFTER FEDERAL RESERVE'S DECISION TO TIGHTEN RATES BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL VOLATILE STOCK AND BOND MARKETS TOOK A TOLL ON COMMODITY MARKETS HELPING PUSH PRECIOUS METALS PRICES LOWER AFTER A GENERALLY BULLISH START TO THE DAY SILVER FUTURES PRICES SOARED EARLY IN THE DAY WITH THE MAY CONTRACT HITTING A HIGH OF 5355 AN OUNCE ON NEW YORK'S COMMODITY EXCHANGE PRICES FELL BACK TO END THE DAY AT 5267 AN OUNCE BUT THAT STILL WAS 27 CENTS HIGHER ON THE DAY GOLD WHICH SLUGGISHLY FOLLOWED SILVER HIGHER IN THE MORNING ALSO RETREATED WITH GOLD FOR JUNE DELIVERY ENDING AT 37850 AN OUNCE OFF 90 CENTS THE JULY PLATINUM CONTRACT ON THE NEW YORK MERCANTILE EXCHANGE HAD TRADED AS HIGH AS 404 AN OUNCE BUT DROPPED SHARPLY TO FINISH AT 39360 DOWN 510 AN OUNCE MOST ANALYSTS ATTRIBUTED THE SELLOFF TO THE DECISION BY THE US FEDERAL RESERVE TO TIGHTEN INTEREST RATES THE FED'S KEY LENDING RATE THE FED FUNDS RATE WAS NUDGED UP TO 375 FROM 350 MIDWAY THROUGH THE MORNING THAT INCREASE ROILED STOCK AND BOND MARKETS AND SPILLED OVER INTO MANY PARTS OF THE COMMODITIES MARKET WHEN THE FED TIGHTENED THEY TOOK ALL THE STEAM OUT OF THE RALLY IN PRECIOUS METALS PRICES SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH & CO IN NEW YORK SILVER'S RISE WAS FUELED BY THE RELEASE OF A COMMITMENT OF TRADERS REPORT LATE FRIDAY WHICH SHOWED A DECREASE IN THE NUMBER OF SILVER CONTRACTS HELD BY LARGE SPECULATIVE INVESTORS SUCH AS COMMODITY AND HEDGE FUNDS INSTEAD THE BIWEEKLY REPORT COMPILED BY THE COMMODITY FUTURES TRADING COMMISSION SHOWED INCREASED BUYING INTEREST ON THE PART OF INDUSTRIAL USERS OF THE METAL THERE WAS A FEELING THAT THE SPECULATORS HAD PERHAPS OVERSOLD SILVER SAID BERNARD SAVAIKO SENIOR ANALYST AT PAINEWEBBER INC BUT IN THE WAKE OF THE INTERESTRATE INCREASE PROFITTAKERS QUICKLY STEPPED IN TO REALIZE SOME OF THEIR GAINS PUSHING PRICES LOWER GOLD FAILED TO KEEP STEP WITH SILVER AND PLATINUM IN THEIR EARLY UPWARD MOVES A FACT THAT FRED DEMLER METALS ECONOMIST WITH ED&F MAN ATTRIBUTED TO HIGHER INDUSTRIAL DEMAND FOR THE LATTER TWO METALS GOLD WAS ANEMIC ALL DAY WHICH I THINK IS A BAD SIGN FOR METALS MARKETS GENERALLY SAID MR O'NEILL MR SAVAIKO NOTED THAT HIGHER RATES WHILE INFLATION REMAINS RELATIVELY LOW WORKS AGAINST INVESTORS MOVING INTO TANGIBLE ASSETS SUCH AS COMMODITIES WHICH DON'T PAY A RETURN IN THE SHAPE OF INTEREST OR DIVIDENDS THEN THERE'S THE CONCERN BY TRADERS AND MONEY MANAGERS ALREADY LOSING MONEY ON PAPER ASSETS WHO FIGURE THEY SHOULD AVOID THE RISK OF REALLY GETTING KILLED IN A VOLATILE COMMODITIES MARKET HE ADDED THE SHARP DROP IN PLATINUM FUTURES WAS TIED MORE TO NEWS REPORTS FROM SOUTH AFRICA HOWEVER TRADERS NOTED THAT TALKS TAKING PLACE AIMED AT ENDING THE BOYCOTT OF NEXT WEEK'S FIRST COMPLETELY OPEN ELECTIONS IN THAT COUNTRY APPEAR TO BE APPROACHING A SUCCESSFUL CONCLUSION THE VAST MAJORITY OF PLATINUM ALREADY IN TIGHT SUPPLY IS EXTRACTED FROM MINES IN SOUTH AFRICA PLATINUM HAS BROKEN THROUGH A KEY TECHNICAL SUPPORT LEVEL AT 396 AN OUNCE SAID SCOTT MEYER SENIOR TECHNICAL ANALYST AT REDEL TRADING CO IN NEW YORK HE PUT THE NEXT KEY SUPPORT LEVEL FOR THE METAL AT 387 AN OUNCE IN OTHER COMMODITY MARKETS GRAINS WHEAT FUTURES PRICES WERE SUPPORTED BY BIDS BY CHINA TO ACQUIRE 400000 TONS EACH OF HARD RED WINTER WHEAT AND SOFT RED WINTER WHEAT AT THE KANSAS CITY BOARD OF TRADE JULY HARD RED WINTER WHEAT ROSE 25 CENTS TO SETTLE AT 3185 A BUSHEL WHILE SOFT RED WINTER WHEAT FOR JULY DELIVERY GAINED THREE CENTS TO 31875 ON THE CHICAGO BOARD OF TRADE THE CHINESE OFFICIALS WERE HERE ONLY A WEEK OR SO AGO SO THE BUYING INTEREST HAS COME QUICKLY SAID DANIEL BASSE MARKET RESEARCH DIRECTOR OF AGRESOURCE CO OF CHICAGO THE SIZE OF THE PURCHASE WAS SLIGHTLY SMALLER THAN EXPECTED SO THERE'S HOPE THERE WILL BE SOME ADDITIONAL BUYING MR BASSE ADDED THAT WEATHER CONCERNS CONTINUE TO AFFECT WHEAT FUTURES PRICES NOTING THAT DRYNESS STILL LINGERS IN PARTS OF TEXAS AND NEBRASKA THERE'S SOME CONCERN THAT THE GREAT EXTREMES AND GREAT VARIABILITY OF WEATHER WE'VE HAD WILL LIMIT YIELDS THIS YEAR HE SAID SOYBEANS ALSO EDGED HIGHER ON THE POSSIBILITY OF ADDITIONAL SHIPPING DELAYS IN BRAZIL ON THE CBOT THE JULY CONTRACT ENDED AT 65475 A BUSHEL UP FOUR CENTS CORN FUTURES PRICES SETTLED LOWER BECAUSE OF WEATHER CONDITIONS THAT REMAIN GENERALLY FAVORABLE FOR PLANTING THIS YEAR'S CROP COFFEE PRICES OF COFFEE FUTURES REGAINED SOME GROUND IN THE WAKE OF A SELLOFF FRIDAY THAT PUSHED THE JULY CONTRACT DOWN 310 CENTS A POUND TO 8210 CENTS ON NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE JUDITH GANES SENIOR ANALYST AT MERRILL LYNCH & CO SAID THE BRAZILIAN EXPORT SITUATION APPEARS MUCH MORE CONFUSED THAN IT DID FRIDAY WHEN REPORTS THAT BRAZIL WOULD RELEASE ITS STOCKS ONTO THE MARKET RESULTED IN THE STEEP DECLINE OF THE FUTURES PRICES NOW THERE'S SOME UNCERTAINTY AS TO WHETHER THOSE STOCKS WILL BE RELEASED TO WHOM AND HOW SHE SAID ADDING THAT INVESTORS NOW APPEAR TO BE FOCUSING ON THE OVERALL TIGHT SUPPLY SITUATION FOR THE COMMODITY COFFEE FOR JULY DELIVERY ENDED AT 8310 CENTS UP ONE CENT 9404190094 940419 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ANTEC CORP AN OFFERING OF UP TO FOUR MILLION OF ITS COMMON SHARES CRESCENT CAPITAL TRUST INC AN INITIAL OFFERING OF 58 MILLION COMMON SHARES AT AN EXPECTED 18 TO 20 A SHARE WITH AN OVERALLOTMENT OPTION FOR 870000 ADDITIONAL SHARES VIA SMITH BARNEY SHEARSON GOLF ENTERPRISES INC AN INITIAL OFFERING OF 26 MILLION COMMON SHARES AT A PROPOSED 17 A SHARE WITH AN OVERALLOTMENT OPTION FOR 390000 ADDITIONAL SHARES VIA WILLIAM BLAIR & CO AND SMITH BARNEY SHEARSON INC LASTERMASTER TECHNOLOGIES INC A PROPOSED OFFERING OF 17 MILLION COMMON SHARES RIGHTCHOICE MANAGED CARE INC AN INITIAL OFFERING OF UP TO 3737500 CLASS A COMMON SHARES AT A PROPOSED MAXIMUM OF 16 A SHARE VIA MORGAN STANLEY & CO AND SMITH BARNEY SHEARSON 9404190093 940419 YOUR MONEY MATTERS SAFE' BONDS FALL PREY TO CLIMB IN RATES BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL MANY CONSERVATIVE INVESTORS WHO CONFIDENTLY ASSUMED THEY WERE PLAYING IT SAFE IN US TREASURY MUNICIPAL AND OTHER SEEMINGLY GILTEDGED BONDS AND BOND FUNDS HAVE BEEN BURNED BADLY IN THE BOND MARKET'S BIGGEST ROUT IN MORE THAN SIX YEARS INVESTOR GLOOM THICKENED AS THE FEDERAL RESERVE RAISED SHORTTERM INTEREST RATES ANOTHER NOTCH PRICES OF SOME LONGTERM TREASURY BONDS HAVE NOSEDIVED ABOUT 19 SINCE OCTOBER NEARLY TWICE AS BIG A DROP AS THE STOCK MARKET'S RECENT SETBACK MUCH TO THE SURPRISE OF SOME RISKAVERSE INVESTORS GENERAL MUNICIPALBOND FUNDS HAVE BEEN HIT ESPECIALLY HARD THE VALUE OF MANY GENERAL TAXFREE FUNDS TUMBLED 5 OR MORE IN THE FIRST QUARTER AS INTEREST RATES DARTED HIGHER NUMEROUS SINGLESTATE FUNDS WHICH TYPICALLY INVEST IN BONDS ISSUED WITHIN ONE STATE FELL EVEN HARDER NOW SOME STRATEGISTS ARE SAYING THIS IS THE TIME TO JUMP INTO THE LONGTERM BOND MARKET TO LOCK UP TODAY'S HIGH YIELDS THEY ARGUE THAT INFLATION FEARS ARE WILDLY EXAGGERATED AND THAT LONGTERM US GOVERNMENT CORPORATE AND MUNICIPALBOND FUNDS WILL SPARKLE AS INTEREST RATES DRIFT BACK DOWN LATER THIS YEAR MAYBE BUT BEFORE INVESTORS DASH TO FIND THE POT OF GOLD AT THE END OF THE BOND RAINBOW IT MIGHT BE ADVISABLE FIRST TO STEP BACK AND ANALYZE WHY SO MANY INVESTORS' BONDFUND HOLDINGS HAVE BEEN HAMMERED SO HARD IN RECENT WEEKS ALSO FOR CONSERVATIVE INVESTORS WHO CAN'T AFFORD BIG RISKS IT MIGHT BE ADVISABLE TO CONSIDER WAYS TO SOFTEN THE BLOW THE NEXT TIME THE MARKET TAKES AN UNEXPECTED DIVE ABOVE ALL REMEMBER AN OFTENREPEATED BUT MOST WIDELY IGNORED RULE OF BOND INVESTING NEVER EVER BUY A BOND OR BOND FUND SOLELY ON THE BASIS OF YIELD IT'S EASY TO SEE WHY SO MANY PEOPLE ARE SEDUCED BY YIELD COMPARISONS THIRTYYEAR TREASURY BONDS CURRENTLY YIELD 742 NEARLY DOUBLE THE 377 OFFERED BY THREEMONTH TREASURY BILLS SOME LONGTERM TAXFREE BONDS YIELD ABOUT 67 WHILE ONEYEAR MUNIS WITH COMPARABLE RATINGS YIELD ONLY 4 ACCORDING TO AUSTIN TOBIN OF DELPHIS HANOVER CORP IN SOUTHBURY CONN BUT WHEN INTEREST RATES SURGE THE PRICES OF LONGTERM BONDS AND BOND FUNDS DROP MUCH MORE SHARPLY THIS DOESN'T MEAN INVESTORS HAVE TO GIVE UP ON GENEROUS RETURNS ON THE CONTRARY BONDS AND BOND FUNDS CAN PLAY AN IMPORTANT ROLE IN A DIVERSIFIED INVESTMENT PORTFOLIO THE TRICK IS TO KNOW THE RIGHT STRATEGIES AND STICK WITH THEM BUILD A LADDER LADDERING MEANS BUYING BONDS OR BOND FUNDS WITH VARYING MATURITIES RANGING FROM SHORT TERM TO LONG TERM RESEMBLING STEPS ON A LADDER I STRONGLY RECOMMEND LADDERING SAYS JOHN L STEFFENS AN EXECUTIVE VICE PRESIDENT AT MERRILL LYNCH & CO IT'S A GREAT WAY TO REDUCE RISK FOR EXAMPLE INSTEAD OF BUYING A SINGLE LONGTERM BOND CONSIDER INSTEAD BUYING BONDS DUE IN TWO FOUR SIX EIGHT AND 10 YEARS OR TRY A SIMILAR APPROACH WITH MUTUAL FUNDS SEVERAL MAJOR FUND ORGANIZATIONS OFFER NO LOAD FUNDS THOSE WITH NO SALES CHARGES WITH A WIDE RANGE OF MATURITIES FOR EXAMPLE THE SHORTTERM MUNICIPALBOND FUND OFFERED BY VANGUARD GROUP IN VALLEY FORGE PA RANKED NO 1 AMONG NOLOAD FUNDS IN ITS GROUP DURING THE LATEST 12 MONTHS VANGUARD'S INTERMEDIATETERM MUNIBOND FUND RANKED NO 1 AMONG FUNDS IN ITS GROUP OVER THE PAST FIVE YEARS WITH A TOTAL RETURN OF 5428 ACCORDING TO LIPPER ANALYTICAL SERVICES INC TO BE SURE EVEN THE LADDER APPROACH WON'T ALWAYS PROTECT INVESTORS FROM LOSING MONEY BUT AS IN THIS YEAR'S FIRST QUARTER IT CERTAINLY CAN BE BETTER THAN BETTING THE RANCH ON LONGTERM FUNDS DURING THE QUARTER THE AVERAGE GENERAL MUNICIPAL FUND TUMBLED 586 COMPARED WITH DECLINES OF 146 ON SHORTTERM FUNDS AND 395 ON INTERMEDIATETERM FUNDS THINK SHORTERTERM ANOTHER APPROACH IS TO IGNORE LONGTERM BONDS AND INSTEAD BUY SHORT TO INTERMEDIATETERM BONDS OR BOND FUNDS THESE DON'T OFFER YIELDS AS HIGH AS LONGTERM FUNDS BUT THEY ALSO WON'T LOSE THEIR VALUE AS MUCH AS THEIR LONGERTERM COUNTERPARTS IF INTEREST RATES CONTINUE SURGING I WOULD MAKE INVESTMENTS IN BONDS IN A BONDLADDER FORMAT WITH MATURITIES OF ONE TO FOUR YEARS SAYS JEAN M MARTIN PRESIDENT OF MEREDITH MARTIN & KAYE INC A NEW YORK INVESTMENTADVISORY FIRM BUYING LONGERTERM BONDS OR BOND FUNDS IS REALLY A SPECULATION SHE NOTES THAT SHORT AND INTERMEDIATETERM BONDS OFTEN OFFER A YIELD THAT IS APPROXIMATELY 75 OF THE YIELD OF A LONGTERM BONDWITH ONLY ONETHIRD OF THE VOLATILITY FOR NEW CLIENTS OR EXISTING CLIENTS GIVING THE FIRM ADDITIONAL MONEY THE AVERAGE MATURITY OF BONDS THAT MEREDITH MARTIN IS BUYING IS ABOUT 25 YEARS BE SURE TO CHECK THE PROSPECTUS OF ANY BOND FUND YOU MAY BE CONSIDERING AND CALL THE FUND'S CUSTOMERSERVICE PEOPLE TO CONFIRM THE AVERAGE PORTFOLIO MATURITY AND DURATION OF ANY FUND YOU CONSIDER CHECK THE DURATION' EVEN MORE THAN MATURITY DURATION MEASURES A BOND OR BOND FUND'S SENSITIVITY TO INTERESTRATE INCREASES AND DECLINES TO GET A ROUGH IDEA OF THE IMPACT THAT FUTURE INTERESTRATE CHANGES WILL HAVE ON A BOND FUND YOU MERELY MULTIPLY THE FUND'S DURATION BY THE RISE OR FALL IN INTEREST RATES DURATION IS COMPUTED USING A COMPLICATED MATHEMATICAL FORMULA BUT MANY MUTUALFUND FAMILIES WILL TELL YOU THE DURATION OF THEIR BOND FUNDS IF YOU CALL THEIR TOLLFREE NUMBERS AND ASK A FUND REPRESENTATIVE KEEP IN MIND THAT DURATION NUMBERS GIVE A ROUGH ESTIMATE OF WHAT WILL HAPPEN IF RATES RISE OR FALL AS THE NUMBERS FOR EACH FUND CHANGE DAILY MRS MARTIN SAYS THE AVERAGE DURATION OF BONDS THAT MEREDITH MARTIN IS BUYING FOR NEW CLIENTS OR EXISTING CLIENTS GIVING THE FIRM ADDITIONAL MONEY IS 23 YEARS CONSIDER PREMIUM' BONDS MRS MARTIN AND OTHER INVESTMENT ADVISERS ALSO RECOMMEND SHORT TO INTERMEDIATE TERM PREMIUM BONDS THOSE THAT SELL FOR MORE THAN THEIR FACE VALUE PREMIUM BONDS TYPICALLY ARE LESS VOLATILE IN A RISING INTERESTRATE ENVIRONMENT MRS MARTIN SAYS ANOTHER IDEA ADJUSTABLERATE BONDS OR FUNDS DURING THIS YEAR'S FIRST QUARTER ADJUSTABLERATE MORTGAGE FUNDS WERE ONE OF THE VERY FEW TYPES OF BOND FUNDS THAT DIDN'T SHOW A NEGATIVE RETURN THEIR TOTAL RETURN OF 006 MAY NOT WIN ANY MEDALS BUT IT CERTAINLY LOOKS GOOD COMPARED WITH A DECLINE OF 279 ON US MORTGAGE FUNDS DON'T BUY PROBLEMS AVOIDING TAXES TAXEXEMPT MUNICIPAL BONDS AND BOND FUNDS CAN BE A GREAT IDEA FOR MANY INVESTORS BUT FOCUSING TOO MUCH ON TAX AVOIDANCE CAN LEAD TO TROUBLE FOR INSTANCE SINGLE STATE MUNICIPALBOND FUNDS ARE TREMENDOUSLY POPULAR BECAUSE THEY TYPICALLY GENERATE DIVIDENDS THAT ARE FREE FROM FEDERAL STATE AND LOCAL TAXES THAT CAN BE A GREAT INDUCEMENT FOR INVESTORS IN HIGHTAX REGIONS SUCH AS NEW YORK CITY BUT SINGLESTATE FUNDS HAVE ALSO BEEN POPULAR WITH INVESTORS IN FLORIDA AND TEXAS WHICH DON'T EVEN HAVE STATE INCOME TAXES LATELY SINGLESTATE FUNDS GENERALLY HAVE SUFFERED EVEN LARGER DECLINES THAN MOST OTHER TYPES OF MUNICIPAL FUNDS BECAUSE THEIR PORTFOLIOS TYPICALLY CONTAIN A LOT OF LONGTERM MUNICIPAL BONDS THUS BEFORE POURING ALL YOUR MONEY INTO A SINGLESTATE FUND ASK FOR DETAILS OF ITS INVESTMENTS AND SEE WHETHER THE FUND MANAGER ALSO OFFERS AN INTERMEDIATETERM FUND FOR THAT STATE AND CONSIDER WHETHER THE STATE AND LOCAL TAX EXEMPTION REALLY BOOSTS YOUR EFFECTIVE YIELD ENOUGH TO JUSTIFY THE LACK OF NATIONAL DIVERSIFICATION INHERENT IN SINGLESTATE FUNDS HOW SEVERAL MAJOR CATEGORIES OF BOND MUTUAL FUNDS HAVE BEEN CAUGHT IN THE BOND MARKET DEBACLE 9404190092 940419 POCKETPHONE SERVICE PLANNED BY GTE CORP MOVE IS ATTEMPT TO BEAT DELAYED RIVAL SERVICE INTO CONSUMER MARKET BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GTE CORP PLANS TO OFFER A NATIONWIDE POCKETPHONE SERVICE TO CONSUMERS BY YEAR END BECOMING THE FIRST MAJOR CELLULAR CARRIER TO LAUNCH A PREEMPTIVE STRIKE AGAINST FUTURE PERSONAL COMMUNICATIONS SERVICES GTE'S NEW TELEGO SERVICE WOULD BE PRICED SIGNIFICANTLY LOWER THAN REGULAR CELLULARPHONE SERVICE IN MOST CASES BROADENING THE MARKET FOR POCKET PHONES BEYOND HARDCORE BUSINESS USERS THE LIGHTWEIGHT DEVICES HAVE BEEN A MUCHTOUTED FEATURE OF RIVAL PCS WHICH HAVE BEEN DELAYED BY GOVERNMENT REGULATORS PCS PHONES WILL LOOK LIKE SMALL CELLULAR PHONES TO THE CONSUMER BUT WILL OPERATE IN A HIGHER FREQUENCY AND TRANSMIT SIGNALS IN DIGITAL CODE WHICH COULD MAKE IT EASIER TO TRANSMIT DATA AS WELL AS VOICE PCS BACKERS PROMISED PHONES THAT ARE SMALLER AND CHEAPER HOWEVER CONTINUING DELAYS IN LAUNCHING THE SERVICE ARE ALLOWING CELLULAR COMPANIES SUCH AS GTE TO GET A JUMP ON PCS THE NEW GTE SERVICE CALLED TELEGO IS THE CULMINATION OF ALMOST TWO YEARS OF QUIET TESTING IN THE TAMPA FLA MARKET GTE ONE OF THE NATION'S LARGEST CELLULAR CARRIERS WITH SYSTEMS COVERING TERRITORIES WITH 53 MILLION PEOPLE SAMPLED ITS SERVICE WITH 3000 CUSTOMERS IN THE TAMPA MARKETBY FAR THE LARGEST SUCH TEST FOR A WIRELESS SERVICE AIMED AT CONSUMERS INDUSTRY ANALYSTS HAVE LONG EXPECTED THAT CELLULAR OPERATORS SUCH AS GTE WOULD TRY TO BEAT PCS ENTRANTS TO THE PUNCH BY EXPANDING THEIR BASE OF CUSTOMERS BEYOND EXECUTIVES TO COSTCONSCIOUS CONSUMERS CELLULAR CARRIERS HAVE SAID THEY WILL ACCOMPLISH THIS THROUGH DISCOUNT PRICING SCHEMES AND BY MAKING SPECIAL TECHNICAL TWEAKS TO THEIR NETWORK ALLOWING A CONSUMER TO CARRY ONE NUMBER ANYWHERE HE OR SHE GOES THIS IS GOING TO CAUSE PROBLEMS FOR NEW PCS ENTRANTS SAID STEVEN A ZECOLA PRESIDENT OF COLUMBIA PCS INC AN ALEXANDRIA VA COMPANY THAT IS PURSUING PARTNERSHIPS AND LICENSES TO PROVIDE PCS THIS LOOKS JUST LIKE PCS HE NOTED THAT GTE'S NEW SERVICE IS GETTING SOME INADVERTENT HELP FROM THE US GOVERNMENT THE FEDERAL COMMUNICATIONS COMMISSION HAS DELAYED AUCTIONS FOR PCS LICENSES PROBABLY UNTIL EARLY 1995 THE FCC IS NOWHERE TO BE FOUND ONCE WE GET A LICENSE IT TAKES 18 TO 24 MONTHS TO BUILD A NETWORK MR ZECOLA SAID BY THEN GTE WILL HAVE ITS OWN DIGITAL NETWORK BUILT BUT HERSCHEL SHOSTECK AN INDUSTRY CONSULTANT IN SILVER SPRING MD CAUTIONED THAT GTE MAY HURT ITSELF BY OFFERING SUCH A LOWPRICE SERVICE SO EARLY IN THE CONSUMER GAME GTE MAY BE JUMPING THE GUN OFFERING THIS NEW SERVICE SINCE PCS WON'T BE DEBUGGED AND COMMERCIALLY VIABLE UNTIL 1997 HE SAID GTE WILL USE ITS EXISTING CELLULAR NETWORK BASED ON ANALOG TECHNOLOGY AN OLDER APPROACH THAT IS USED MOSTLY FOR VOICE TRANSMISSION AND ISN'T AS ADEPT AT HANDLING DATA WHILE PCS BACKERS EMPHASIZE THE ADVANTAGES OF DIGITAL THE GTE EXECUTIVE IN CHARGE OF THE SERVICE CJ WAYLAN SAID GTE IS BETTING THAT MOST OF ITS CUSTOMERS SIMPLY DON'T CARE ABOUT SUCH ARCANE TECHNICAL MATTERS WE JUST WENT DOORTODOOR AND ASKED OUR CUSTOMERS IF THEY WANTED TO TRY IT OUT SAID MR WAYLAN EXECUTIVE VICE PRESIDENT OF MARKETING AND BUSINESS DEVELOPMENT AT GTE'S PERSONAL COMMUNICATIONS DIVISION IT DOESN'T MATTER MUCH TO ME HOW THE CALL TRAVELS AGREED RICHARD LAVALLEE A TELEGO USER AND OWNER OF LAVALLEE'S PRESSURE CLEANING CO IN TARPON SPRINGS FLA ALL I KNOW IS THAT I'M SITTING AT MY KITCHEN TABLE OVER A PLATE OF COLD SPAGHETTI TALKING TO YOU AND IT'S CRYSTAL CLEAR IT'S BETTER THAN A BEEPER ADDED GARY PFUND A HOTEL MANAGER IN MADEIRA BEACH FLA I DON'T HAVE TO PULL OFF THE ROAD WHEN I'M IN MY CAR TO FIND A PHONE TELEGO USES GTE'S EXISTING CELLULAR PHONE NETWORK WITH A SERVICE TWIST CONSUMERS SUCH AS MR LAVALLEE WILL BE ABLE TO USE THEIR POCKET PHONE AROUND THE HOUSE AS A CORDLESS PHONE OR AT THE MALL OR IN THE CAR EACH USER CAN BE REACHED THROUGH ONE TELEGO NUMBER BUT CUSTOMERS CAN'T ROAM FAR FROM A SERVICE AREA AS REGULAR CELLULAR USERS CAN UNLESS THEY SIGN UP FOR A HIGHERPRICED LEVEL OF SERVICE THE FEE IS 25 A MONTH PLUS A PERMINUTE CHARGE IN TAMPA CUSTOMERS PAY 25 CENTS A MINUTE SIGNIFICANTLY CHEAPER THAN SOME PERMINUTE CELLULAR RATES IN MANY CITIES RATES WILL VARY ACCORDING TO THE AREA OF THE COUNTRY GTE'S MR WAYLAN SAID MR LAVALLEE THE TAMPA USER SAID HE PAYS ABOUT 50 A MONTH GTE PLANS TO OFFER TELEGO IN A DOZEN OF ITS BIGGEST MARKETS BY THE END OF THE YEAR MR WAYLAND SAID HE DECLINED TO IDENTIFY THESE MARKETS BEYOND THE TAMPA TEST AREA BUT GTE'S LARGEST MARKETS ALSO INCLUDE SAN FRANCISCO AND HOUSTON MR WAYLAND NOTED THAT GTE IS ALSO COMMITTED TO PURSUING PCS LICENSES IN AREAS WHERE THE COMPANY STILL LACKS COVERAGE AT THE SAME TIME GTE IS CONVERTING ITS CELLULAR NETWORK TO HANDLE DIGITAL CALLS AND DATA TRANSMISSIONS 9404190091 940419 THE ARSENIO HALL SHOW' IS SET TO BE DISCONTINUED HOLLYWOOD THE ARSENIO HALL SHOW A VICTIM OF POOR RATINGS IN THE HEATED LATENIGHT TALKSHOW WARS WILL HAVE ITS LAST ORIGINAL SHOW AIRED MAY 27 A SPOKESMAN FOR PARAMOUNT TELEVISION GROUP THE SYNDICATOR OF THE TALK SHOW SAID MR HALL TURNED DOWN ITS OFFER OF A NEW CONTRACT HE DENIED REPORTS THAT PARAMOUNT PLANNED TO CANCEL THE PROGRAM SOON ANYWAY HE ADDED THAT MR HALL WILL CONTINUE HIS PRODUCTION DEAL WITH PARAMOUNT'S TV AND MOVIE OPERATIONS THE ARSENIO HALL SHOW WHICH WAS ONCE ENORMOUSLY POPULAR AMONG YOUNG URBAN VIEWERS HAD ITS DEBUT JAN 3 1989 AND FOR A TIME WAS SECOND ONLY TO THE TONIGHT SHOW STARRING JOHNNY CARSON IN THE RATINGS MR HALL KNOWN FOR ROUSING LINES LIKE LET'S GET BUSY COUNTED AMONG HIS MANY GUESTS THENPRESIDENTIAL CANDIDATE BILL CLINTON WHO PLAYED THE SAXOPHONE ON THE SHOW DURING THE CAMPAIGN BUT AMID RISING COMPETITION NOTABLY FROM DAVID LETTERMAN'S NEW LATE SHOW ON CBS MR HALL'S PROGRAM LOST ITS ZING PARAMOUNT TELEVISION GROUP SAID IT WILL AIR BEST OF EPISODES FROM MAY 31 THROUGH SEPTEMBER THE GROUP IS PART OF PARAMOUNT COMMUNICATIONS INC WHICH WAS RECENTLY ACQUIRED BY VIACOM INC 9404190089 940419 SAGA OF KIDDER'S JETT SUDDEN DOWNFALL OF AN AGGRESSIVE WALL STREET TRADER BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL AT A JANUARY MEETING OF SENIOR KIDDER PEABODY GROUP INC EXECUTIVES AT THE BOCA RATON RESORT & CLUB IN FLORIDA JOSEPH JETT RECEIVED THE CHAIRMAN'S AWARD AS KIDDER'S STAR EMPLOYEE OF 1993 MR JETT KIDDER'S 36YEAROLD CHIEF GOVERNMENTBOND TRADER WAS BASKING IN THE GLOW OF SUCCESS HAVING RECEIVED A 9 MILLION PAYCHECK IN 1993 MR JETT PREACHED HIS BONDTRADING MANTRA TO ABOUT 130 KIDDER SENIOR EXECUTIVES AT THE MEETING THIS IS WAR HE SAID ACCORDING TO THOSE IN ATTENDANCE YOU DO ANYTHING TO WIN YOU MAKE MONEY AT ALL COSTS MR JETT SAID HIS GOAL FOR 1994 ACCORDING TO ATTENDEES WAS TO MAKE A BIGGER BONUS THAN MIKE VRANOS REFERRING TO KIDDER'S MORTGAGE CHIEF WHO MADE MORE THAN 10 MILLION IN 1993 MR JETT WON'T GET THE CHANCE OVER THE WEEKEND KIDDER FIRED MR JETT ACCUSING HIM OF CREATING PHANTOM TRADES AND PROFITS IN THE SOCALLED GOVERNMENTSTRIPS MARKET INFLATING KIDDER'S INCOME BY 350 MILLION OVER MORE THAN A YEAR IN A BID TO PROP HIS PERFORMANCEBASED BONUS STRIPS ARE CREATED BY SPLITTING THE INTEREST AND PRINCIPAL PORTIONS OF BONDS INTO TWO SEPARATELY TRADED ISSUES KIDDER ALSO HAS SUSPENDED FOUR OTHER BOND TRADERS AND TWO TRADEPROCESSING EMPLOYEES FROM THEIR POSTS KIDDER ALLEGES THAT MR JETT ENTERED INTO FORWARD CONTRACTS PRIVATELY TRADED FUTURES TRADES THAT ESSENTIALLY INVOLVED THE EXCHANGE AT A LATER DATE OF STRIPS FOR BONDS INSTEAD OF SETTLING THESE FORWARD CONTRACTS WHEN THEY CAME DUE MR JETT ALLEGEDLY CONTINUED TO ROLL OVER THOUSANDS OF TRADES TAKING FICTITIOUS PROFITS PEOPLE FAMILIAR WITH THE MATTER SAID HE ALLEGEDLY TOOK THE BOGUS PROFITS THROUGH AN ACCOUNTING LOOPHOLE THAT ALLOWED HIM TO CAPTURE THE PROFIT ON THE PRICE OF THE STRIP THE INTEREST PORTION OF THE BOND BEFORE IT WAS RECONSTITUTED OR TURNED BACK INTO THE ORIGINAL BOND THE PEOPLE SAID NOW MR JETT IS BEING INVESTIGATED BY THE US ATTORNEY'S OFFICE IN MANHATTAN AS WELL AS BY THE NEW YORK AND WASHINGTON OFFICES OF THE SECURITIES AND EXCHANGE COMMISSION PEOPLE FAMILIAR WITH THE MATTERS SAY MR JETT'S RAPID DESCENT UNDERSCORES THE PITFALLS IN THE SHADOWY WORLD OF DERIVATIVES THESE INSTRUMENTS WHICH INCLUDE FORWARD CONTRACTS ARE FINANCIAL ARRANGEMENTS BETWEEN DEALERS AND INSTITUTIONAL INVESTORS WHOSE VALUES ARE DERIVED FROM FLUCTUATIONS IN THE PRICES OF STOCKS BONDS AND OTHER ASSETS MR JETT REACHED AT HIS HOME IN MANHATTAN SAID HE HAD NO COMMENT UNTIL I HAVE COUNSEL MR JETT WAS AMONG THE MOST AGGRESSIVE TRADERS ON WALL STREET A POWERFULLY BUILT MAN WHO FAVORS DARK CONSERVATIVE SUITS MR JETT HAS PIERCING BROWN EYES THAT LOOK RIGHT THROUGH YOU AN ASSOCIATE SAYS HE HAS BROAD INTERESTS ASIDE FROM WALL STREET RANGING FROM SKIING TO THE PHILOSOPHY OF NIETZSCHE TO THE SYMPHONIES OF MAHLER AND THE POETRY OF LORD BYRON ASSOCIATES SAY ASSOCIATES SAY MR JETT WAS PROPELLED BY AN INTENSE COMPETITIVE DRIVE TO MAKE MORE MONEY THAN ANYONE AT THE FIRM HE HAD A TREMENDOUS DRIVE TO WIN SAID MICHAEL A CARPENTER KIDDER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER BUT MR JETT'S AGGRESSIVE STREAK RUBBED SOME KIDDER ASSOCIATES THE WRONG WAY IN FREQUENT CONVERSATIONS HE WOULD BARK ARE YOU CHALLENGING ME THEY SAY SAYS MR CARPENTER THE POWER OF THE MAN IS HARD TO IGNORE HE FREQUENTLY LET OTHERS KNOW THAT HE WAS A DISCIPLE IN SHAO LIN KUNG FU ASSOCIATES SAY AND THAT AGGRESSIVENESS TRANSLATED INTO THE WAY HE DID BUSINESS TRADERS SAY HE TOOK HUGE RISK POSITIONS OVER THE LAST 18 MONTHS SAYS A TRADER WHO USED TO WORK WITH HIM HE WAS AN EXTREMELY STRONGWILLED EGOTISTICAL PLAYER WHO BELIEVED HE COULD OUTTRADE THE MARKET MR JETT'S WALL STREET RISE WAS SUDDEN HIS RESUME SAYS HE RECEIVED A MASTERS OF BUSINESS ADMINISTRATION DEGREE FROM HARVARD IN 1987 ALTHOUGH ASSOCIATES SAY HE NEVER RECEIVED A DEGREE IT ALSO SAYS HE HAS A MASTERS OF SCIENCE DEGREE FROM MASSACHUSETTS INSTITUTE OF TECHNOLOGY HE STARTED HIS CAREER AT GENERAL ELECTRIC CO AS A SENIOR PROCESS ENGINEER IN THE PLASTICSBUSINESS DIVISION AND ACCORDING TO THE RESUME HE WAS AWARDED A GE TOP PERFORMER DESIGNATION FOR HIS WORK LATER HE WAS AN ADVANCED PRODUCTION ENGINEER AT GE UNTIL 1985 THE RESUME STATES HIS WALL STREET CAREER BEGAN AT MORGAN STANLEY & CO IN 1987 AS A JUNIOR TRADER IN MORTGAGEBACKED SECURITIES HE SOON GRADUATED TO ARBITRAGE TRADER AND FINALLY DEVISED TRADING STRATEGIES IN MORGAN'S STRUCTUREDFINANCE GROUP HE MOVED TO CS FIRST BOSTON INC IN 1989 BUT STILL HELD A JUNIOR ROLE IN MORTGAGEBACKED SECURITIES HE LEFT WHEN HIS POSITION WAS ELIMINATED IN 1991 KIDDER HIRED MR JETT IN 1991 AS A GOVERNMENTBOND TRADER HE BECAME GOVERNMENTTRADING CHIEF A YEAR AGO OVERSEEING 16 TRADERS PLUS SUPPORT STAFF THE FIRM SAYS IT HAD HAD NO PRIOR COMPLAINTS ABOUT HIS PERFORMANCE AND A REGULATORY RECORD DISCLOSED NO MAJOR DISCIPLINARY PROBLEMS TRADERS SAY MR JETT'S ALLEGED RUSE APPARENTLY UNRAVELED AMID THE RECENT DROP IN GOVERNMENTBOND PRICES KIDDER EXECUTIVES SAY THEY BELIEVE MR JETT'S ALLEGED BOGUS TRADES MAY HAVE MASKED LOSSES OF AS MUCH AS 100 MILLION ON OTHER TRADES THOUGH THE ALLEGED RUSE LASTED OVER A YEAR KIDDER SAYS IT UNCOVERED THE EXTENT OF THE PROBLEM ONLY LATE LAST WEEK WHEN THE FIRM TRIED TO RESOLVE WHAT IT THOUGHT WAS A RECONCILIATION ISSUE IN ITS GOVERNMENTSTRIPS TRADING THE AMOUNT OF THE BOGUS PROFITS WAS ENORMOUS JUST AS KIDDER AND PARENT GE WERE PREPARING TO REPORT STRONG EARNINGS FOR THE FIRST QUARTER PEOPLE FAMILIAR WITH THE MATTER SAY ON THURSDAY AFTERNOON SENIOR KIDDER EXECUTIVES INCLUDING MR CARPENTER EDWARD CERULLO KIDDER'S FIXEDINCOME CHIEF AND JOHN LIFTIN KIDDER'S GENERAL COUNSEL CALLED MR JETT INTO THE OFFICE OF A HUMANRESOURCES EXECUTIVE MR JETT DENIED THAT HE DID ANYTHING WRONG THE PEOPLE SAID WHEN THE EXECUTIVES PRESSED HIM ON THE TRADES THEY WERE MET ALTERNATIVELY WITH LONG SILENCES FROM MR JETT OR WHAT SOUNDED LIKE A CANNED SPEECH ACCORDING TO ONE PARTICIPANT MR JETT TOLD THE KIDDER EXECUTIVES THAT HIS STRIPS TRADES WERE MADE ONLY TO OFFSET SOME OTHER TRADES THE PARTICIPANT SAYS AND THAT HE WASN'T TRYING TO DISTORT PROFITS IN ANY WAY THE TRADING FIASCO RAISES QUESTIONS ABOUT THE RISKS IN THE PERFORMANCEBASED SYSTEM WALL STREET FIRMS USE TO PAY TRADERS AND OTHERS IN SOME WAY PAYING SUCH ENORMOUS SUMS OF CASH BASED ON VOLUME OF BUSINESS ENCOURAGES ABUSES ANALYSTS SAY THE KIDDER LOSS IS AMONG THE SINGLE BIGGEST EVER RECORDED BY A WALL STREET TRADER AND THE BIGGEST SCANDAL TO SURFACE IN THE TREASURYBOND MARKET SINCE SALOMON BROTHERS INC'S 1991 AUCTIONBIDDING SCANDAL EVEN KIDDER CHIEF EXECUTIVE MR CARPENTER IN A STATEMENT SAID THIS HAS ALL THE APPEARANCES OF SOMEONE DEVELOPING A TRADING SCHEME TO IMPROVE THE APPEARANCE OF HIS PERFORMANCE IT WORKED FOR HIM THE STATEMENT ADDED KIDDER EXECUTIVES NOW REGRET THE AWARD THEY GAVE MR JETT IN JANUARY INDEED AFTER MR JETT'S SPEECH WHICH CAME AT A MEETING THAT AMONG OTHER THINGS STRESSED TEAMWORK KIDDER EXECUTIVES SAY THEY HAD SECOND THOUGHTS ON THE AWARD THE FEELING WAS UNDER THE CIRCUMSTANCES THAT WE COULDN'T TAKE IT AWAY FROM HIM SAYS MR LIFTIN THE GENERAL COUNSEL THAT COULD BE DEVASTATING TO SOMEONE'S MORALE LAURIE P COHEN CONTRIBUTED TO THIS ARTICLE 9404190088 940419 PIPING UP NATURALGAS INDUSTRY IS REINVENTING ITSELF BY GOING INTERNATIONAL ENRON IS RACING BRITISH GAS IN A GLOBAL EXPANSION AIMED AT BIG OIL'S EMPIRE PITCHING CLEAN AIR IN ASIA BY CALEB SOLOMON AND ROBERT JOHNSON STAFF REPORTERS OF THE WALL STREET JOURNAL HOUSTON BEING A NATURALGAS EXECUTIVE USED TO CARRY A SECONDCLASS STATUS IN THIS CITY'S PRIVATE WATERING HOLES WHILE OIL MEN TALKED TACTICS FOR MEETINGS IN VIENNA OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES THEIR NATURALGAS PEERS PLANNED PIPELINES TO SAY CLEVELAND OIL MEANT CASH AND CLOUT GAS WAS A TABLE NEAR THE KITCHEN THE SHORTAGE OF PRESTIGE RANKLED KENNETH L LAY CHIEF EXECUTIVE OFFICER OF ENRON CORP THE NATION'S LARGEST NATURALGAS COMPANY IT IRKED HIM SO MUCH SAYS DANIEL YERGIN AUTHOR OF THE PRIZE A BESTSELLING BOOK ABOUT THE OIL INDUSTRY THAT MR LAY ONCE CHIDED HIM AT A LUNCHEON HE STOOD UP AND BOLDLY SUGGESTED THAT THE OIL ERA IS GIVING WAY TO GAS RECALLS MR YERGIN AND HE'S PROVING HIMSELF RIGHT BY CREATING A NEW GAS INDUSTRY AS HE GOES ALONG LED BY MR LAY AND BY HIS ARCHRIVAL ACROSS THE ATLANTIC BRITISH GAS PLC CHIEF EXECUTIVE CEDRIC BROWN THE NATURALGAS INDUSTRY IS STARTING TO PLAY OUT A GRAND VISION IN THE SAME LEAGUE WITH JOHN D ROCKEFELLER'S OIL EMPIREBUILDING AT THE TURN OF THE CENTURY ENRON AND BRITISH GAS ARE THE NEW PARADIGM OF THE SURGING 120 BILLIONAYEAR GLOBAL GAS MARKET RACING ACROSS FIVE CONTINENTS TO PLANT THEIR CORPORATE FLAGS IN A FLURRY OF AMBITION THAT HAD BEEN UNHEARD OF IN THEIR STAYATHOME INDUSTRY THEY ARE REINVENTING THEMSELVES AS THE FIRST INTERNATIONAL GAS UTILITIES ABLE TO LEAP IN ALMOST ANYWHERE TO DRILL WELLS BUILD PIPELINES OR POWER PLANTS AND MAKE HOME AND INDUSTRIAL HOOKUPS THAT CREATE MARKETS FOR HUGE FOREIGN FUEL RESERVES THAT HAD BEEN LARGELY IGNORED BY APING THE VERTICAL INTEGRATION OF THE BIG OIL ICONS THAT GAS OFFICIALS LONG ENVIED MESSRS LAY AND BROWN ARE INTRODUCING A NEW POLITICAL SAVVY LEADERSHIP NETWORK AND MARKETING ADROITNESS TO THEIR INDUSTRY NORTH OF LONDON ENRON'S NEW ELECTRICPOWER PLANT AT TEESSIDE THE WORLD'S LARGEST GASBURNING FACILITY OF ITS KIND IS STUDIED BY POTENTIAL CUSTOMERS FROM AS FAR AWAY AS JAPAN AND BY EXECUTIVES FROM OTHER GAS COMPANIES DREAMING OF EXPANSION TOO THE VERY IDEA OF INTERNATIONAL EMPIREBUILDING WAS FOREIGN TO THE GAS INDUSTRY BEFORE MESSRS BROWN AND LAY STARTED UP UNTIL RECENTLY NATURAL GAS WAS THE NEGLECTED HYDROCARBON OFTEN DISCOVERED BY ACCIDENT WHILE DRILLING FOR OIL AND FREQUENTLY BURNED OFF AT THE WELL BECAUSE IT WASN'T VALUABLE ENOUGH TO TRANSPORT THAT IS CHANGING FAST AS ENRON BRITISH GAS AND OTHERS LINK REMOTE GAS FIELDS WITH EMERGING CITIES WHILE MARKETING THE ENVIRONMENTAL CORRECTNESS OF THEIR FUEL THERE ARE ALREADY TERRIBLE POLLUTION PROBLEMS FROM BANGKOK TO CALCUTTA SO THEY ARE LOOKING FOR WAYS TO CLEAN THINGS UP WHILE PUSHING AHEAD WITH ECONOMIC GROWTH AND IMPROVED LIVING STANDARDS SAYS ROBIN WEST PRESIDENT OF CONSULTANTS PETROLEUM FINANCE CO WHOSE CLIENTS ARE NOW PUTTING MORE MONEY INTO GAS THAN OIL COMPARED WITH OIL AND COAL GAS EMITS FAR LESS CARBON DIOXIDE NITROGEN OXIDE AND SULFUR THE GROWTH POTENTIAL IS GREATEST IN AREAS OUTSIDE OF NORTH AMERICA AND WESTERN EUROPE IN PLACES THAT LACK AN INTRICATE NETWORK OF GAS PIPELINES BUT WHERE ECONOMIES ARE STRONG IN ASIA FOR INSTANCE MR WEST PREDICTS NATURALGAS DEMAND WILL DOUBLE BETWEEN 1995 AND 2005 WHILE INDUSTRIALIZED NATIONS IN THE WEST EXPECT INCREASES OF ONLY ABOUT 2 A YEAR WORLDWIDE GAS DEMAND WILL JUMP 31 IN THOSE 10 YEARS HE ESTIMATES THE INTERNATIONAL GAS MARKET HASN'T HAD A CHANCE TO DEVELOP THE OVERSUPPLY THAT HAS CAUSED PRICE VOLATILITY IN THE US BECAUSE COMPANIES SUCH AS ENRON AND BRITISH GAS CANADA'S NOVA CORP OF ALBERTA AND GAZ DE FRANCE IN PARIS ARE ESTABLISHING LONGTERM CONTRACTS AND LOCKING UP ENTIRE COUNTRIES OR REGIONS GASINDUSTRY ANALYSTS PROJECT THE COST OF BUILDING AN INTERNATIONAL MARKET FOR NEW ELECTRIC PLANTS MANY OF THEM GASPOWERED AT 500 BILLION OVER THE NEXT DECADE OR ABOUT SEVEN TIMES THE TOTAL VALUE OF ALL THE NATURAL GAS SOLD IN THE US LAST YEAR THERE IS RISK THE FORECASTS FOR ELECTRICITY USE IN THE THIRD WORLD REMIND ME OF THE OVERCONFIDENT PREDICTIONS BY THE NUCLEARPOWER INDUSTRY IN THIS COUNTRY 25 YEARS AGO SAYS NORMAN HIGBY AN ENERGY CONSULTANT IN MENLO PARK CALIF THESE POWER PLANTS ARE LOADED UP FRONT WITH BIGTIME COSTS BUT BOTH ENRON AND BRITISH GAS ARE FLEXING PLENTY OF FINANCIAL MUSCLE THE COMMON STOCK OF ENRON WHICH HAS 8 BILLION IN ANNUAL REVENUE NOT ONLY HAS OUTPERFORMED ALL OF ITS US GAS COMPETITORS SINCE 1989 BUT HAS BESTED THE TOP SEVEN OIL COMPANIES AS WELL BRITISH GAS A 16 BILLION COMPANY IN RECENT YEARS HAS RECORDED HIGHER NET INCOME EXCEPT FOR 1993 WHEN IT TOOK A 247 BILLION CHARGE TO REORGANIZE ITS DOMESTIC BUSINESS THAN ALL BUT THREE OF THE WORLD'S OIL MAJORS ROYAL DUTCH/SHELL GROUP EXXON CORP AND CHEVRON CORP ANALYSTS FORECAST DOUBLEDIGIT GROWTH IN NET INCOME FOR ENRON AND BRITISH GAS IN 1994 MANY OF THE MAJOR OIL COMPANIES WHICH ALSO OWN MOST OF THE LARGE NATURALGAS FIELDS NOW SEE ENRON AND BRITISH GAS AS POTENTIAL MODELS FOR MAKING THOSE ASSETS MORE USEFUL THEY COULD BE AN EXAMPLE SAYS KEITH RATTIE MANAGER OF CHEVRON'S INTERNATIONAL GAS BUSINESS IN MANY COUNTRIES CHEVRON AND THE LIKE CAN'T SELL THEIR GAS FOR LACK OF PIPELINES AND POWER PLANTS IN NIGERIA FOR INSTANCE CHEVRON IS ONE OF SEVERAL OIL PRODUCERS THAT BURN AS WASTE A TOTAL OF 15 BILLION CUBIC FEET OF THE FUEL A DAYEQUAL TO 3 OF US DEMAND THUS THE OIL CONCERNS MAY SEEK ALLIANCES WITH THE EMERGING GAS SPECIALISTS BUT BRITISH GAS AND ENRON ALREADY HAVE ANGERED SOME INTERNATIONAL OIL COMPANIES BRITISH GAS GAINED A REPUTATION AS A PENNYPINCHING BUYER OF THE NORTH SEA GAS FOUND BY EXXON BRITISH PETROLEUM CO AND ROYAL DUTCH/SHELL AND ENRON IS EMBROILED IN A DISPUTE IN YEMEN WITH EXXON AND A DESCENDANT OF FAMED TEXAS WILDCATTER HL HUNT MR LAY HAS NEGOTIATED AN ACCORD WITH THE YEMENI GOVERNMENT TO DEVELOP THE GAS RESERVES FOUND BY THE OIL COMPANIES WHICH ARE FIGHTING TO HOLD ON TO THEM WARRING CHIEFTAINS MESSRS LAY AND BROWN ARE CLASHING WITH EACH OTHER TOO THE TWO FOES ARE VERY DIFFERENT MEN MR BROWN 58 YEARS OLD IS A TALL AND BUSHYBROWED YORKSHIREMAN WHO STARTED WORKING FOR BRITISH GAS AT AGE 16 HE HAS DUG DITCHES AND LAID PIPE RICHARD NEEDHAM BRITAIN'S MINISTER OF TRADE AND INDUSTRY SAYS A YORKSHIREMAN IS LIKE A TOUGH TEXAN WITHOUT TALKING SO MUCH MR LAY 51 IS A SHORT BALDING MISSOURI NATIVE WITH AN ECONOMICS DOCTORATE AND A FLAIR FOR HYPERBOLE HE CALLS THE US THE SAUDI ARABIA OF NATURAL GAS EVEN THOUGH SEVERAL OTHER COUNTRIES HAVE HEFTIER RESERVES HE HASN'T DIRTIED HIS HANDS IN THE GAS FIELDS DESPITE THEIR DIFFERENCES BOTH MEN HAVE RECENTLY BROUGHT THEIR COMPANIES FORTH FROM RESTRICTIVE DOMESTIC REGULATORY ENVIRONMENTS TO QUEST FOR THE GLOBAL GAS GRAIL BRITISH GAS NOW PROCLAIMS ITSELF THE LEADING INTERNATIONAL GAS COMPANY AND THE AMERICAN UPSTART ALREADY FLAUNTS A WE'RE NO 1 AIR WITH MR LAY SAYING ENRON IS ON TRACK TO BE THE WORLD'S FIRST GAS MAJOR WHILE AN ENRON ENGINEER REFERS TO THE COMPANY'S NEW BRITISH POWER PLANT AS OUR CROWN JEWEL INTERNATIONALLY IT IS A ROYAL PAIN TO BRITISH GAS'S MR BROWN REPRESENTING NOTHING LESS THAN A BEACHHEAD IN HIS TERRITORY TO FIRE BACK BRITISH GAS WHICH IS BASED IN LONDON RECENTLY SWOOPED INTO TENNECO INC'S HOUSTON HOME OFFICE NEAR MR LAY'S HEADQUARTERS AND RECRUITED THE COMPANY AS A PARTNER IN A PROPOSED SOUTH AMERICAN GAS PIPELINE HANDS ACROSS THE WATER AND A THUMB IN ENRON'S EYE CONCLUDES RONALD BARRONE AN ENERGY ANALYST AT KIDDER PEABODY & CO SINCE ENRON BEGAN CONSTRUCTION AT TEESSIDE FOUR YEARS AGO BRITISH GAS HAS QUASHED ENRON'S PROPOSED 100 MILLION BID TO BUY PART OF A NORTH SEA GAS FIELD AND ACQUIRED THE PROPERTY ITSELF MR BROWN ALSO OUTFLANKED ENRON TO WIN A 15 BILLION GASPIPELINE PROJECT FROM ARGENTINA TO CHILE MOREOVER BRITISH GAS ACQUIRED A ONETHIRD INTEREST IN NATURAL GAS CLEARINGHOUSE A CLOSELY HELD HOUSTON COMPANY THAT IS ENRON'S BIGGEST GASMARKETING COMPETITOR IN THE US ALL THIS COMES DESPITE THE HIRING BY ENRON OF FORMER SECRETARY OF STATE JAMES BAKER AND FORMER COMMERCE SECRETARY ROBERT MOSBACHER AS GLOBAL ENVOYS IN ENRON'S PUSH TO BE RECOGNIZED AS THE TOP WORLDWIDE GAS COMPANY MR LAY ORDERED CONSTRUCTION TO START ON THE 12 BILLION BRITISH PLANT SIX MONTHS BEFORE HE COMPLETED ITS FINANCING SIMILAR PROJECTS ARE BEING NEGOTIATED IN INDIA AND INDONESIA ENRON'S FOREIGN BUSINESS HAS SURGED TO 17 OF ITS OVERALL EARNINGS FROM 35 FIVE YEARS AGO BRITISH GAS REAPS 25 OF ITS PROFIT FROM OFFSHORE OPERATIONS A FIVEFOLD INCREASE SINCE 1988 BUT ONE ENRON TACTIC ITS AGGRESSIVE ACCOUNTING IS A BIT TOO FAST FOR SOME IN 1991 ENRON BECAME PERHAPS THE ONLY MAJOR GAS OR OIL COMPANY TO ADOPT ITS METHOD OF BOOKING ALL ESTIMATED PROFIT ON MULTIYEAR GAS CONTRACTS AT THE TIME THEY ARE SIGNED IN OTHER WORDS IF ENRON EXPECTS NET INCOME OF 400000 ANNUALLY FOR FIVE YEARS ON THE FIXEDPRICE SALE OF GAS TO A LOCAL UTILITY OR MANUFACTURER IT BOOKS 2 MILLION IN THE FIRST YEAR SUCH ACCOUNTING BOOSTS SHORTTERM EARNINGS WHILE INCREASING THE POTENTIAL FOR EXPOSURE TO LOSSES ALTHOUGH THE SECURITIES AND EXCHANGE COMMISSION HAS APPROVED ENRON'S ACCOUNTING CRITICS INCLUDING THE US MARKETING AFFILIATE OF BRITISH GASSAY THE PRACTICE INVITES ABRUPT WRITEDOWNS BECAUSE IT WON'T ALLOW THE COMPANY TO SPREAD OUT ITS LOSSES OVER TIME IF CUSTOMERS CANCEL OR IF ACCIDENTS OR BAD WEATHER CUTS OFF SUPPLIES JUST IN CASE ENRON HAS SET ASIDE 100 MILLION IN RESERVES ENRON'S ACCOUNTING IGNORES THE 1980S DEBACLE IN WHICH GAS VENDORS INCLUDING ITSELF WATCHED BILLIONS OF DOLLARS IN CONTRACTS DISAPPEAR BECAUSE CUSTOMERS REFUSED TO KEEP TAKING FIXEDPRICE GAS IN AN ERA OF FALLING MARKET VALUES FOR THE COMMODITY BUT GAS PRICES HAVEN'T FOLLOWED THE RECENTLY WEAK OIL MARKETS SO ENRON CONSIDERS SUCH TACTICS AS AGGRESSIVE ACCOUNTING AS ACCEPTABLE RISKS BOTH ENRON AND BRITISH GAS ARE TRYING TO MAKE UP FOR TIME LOST AFTER STUMBLING ON THEIR HOME TURF DURING THE LATE 1970S WHEN FEARS OF DWINDLING GAS RESERVES LED TO TEMPORARY LAWS LIMITING THE USE OF GAS AS A BOILER FUEL FOR ELECTRIC UTILITIES THEY WATCHED GAS ALMOST GET PUT BACK IN THE DARK HOLE FROM WHENCE IT CAME SAYS JOHN CLARK SENIOR VICE PRESIDENT OF CMS ENERGY CORP A GAS COMPANY BASED IN DEARBORN MICH NOW THEY'RE LAUNCHING ROCKETS SEEING THAT CMS IS TAKING OFF ON ITS OWN TO ARGENTINA AND IS EXPLORING BUSINESS IN THE PHILIPPINES MEANWHILE ENRON'S MR LAY IS OVERSEAS SO OFTEN THAT HE IS RARELY SEEN AT HOUSTON'S TRADITIONAL LUNCH HAVENS FOR ENERGY BRASS HIS OWN VICE PRESIDENTS COULDN'T FIND HIM TO FOLLOW THROUGH ON A PLAN TO GIVE NEW 50 BILLS TO ALL 7800 EMPLOYEES WHEN ENRON'S SHARES REACHED THAT PRICE IN FEBRUARY 1993 MR LAY'S WHEREABOUTS DAVOS SWITZERLAND TALKING UP NATURAL GAS TO AN ECONOMIC GROUP CALLING ITSELF GOVERNORS OF THE WORLD 9404190087 940419 WORLD MARKETS US RATERISE SIGNAL SOCKS EUROPEAN BOURSES TOKYO SHARES RISE ON STRONG FOREIGN BUYING A WALL STREET JOURNAL NEWS ROUNDUP LONDON STOCKS WERE PUSHED DOWN TO FINISH AT YESTERDAY'S LOWS ON NEWS THAT THE US SIGNALED A FURTHER TIGHTENING OF MONETARY POLICY WHICH HELPED SLAM BOURSES THROUGHOUT EUROPE BUT FRANKFURT SHARES SCORED A 13 GAIN LED BY AUTOMOTIVE ISSUES AND THE TOKYO MARKET ROSE MONDAY ON STRONG BUYING BY OVERSEAS INVESTORS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11361 DOWN 007 REFLECTING LOWER AMERICAN AND EUROPEAN MARKETS AND HIGHER ASIA/PACIFIC MARKETS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 21037 UP 1304 OR 66 WITH UNITED PLANTATIONS OF MALAYSIA POSTING A 16 GAIN IN ITS LOCAL CURRENCY PRECIOUS METALS STOCKS TRAILED AT 13840 DOWN 317 OR 22 WITH ECHO BAY MINES OF CANADA SLIDING 81 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 301 POINTS TO 31382 BARELY ABOVE THE SESSION TROUGH OF 31377 AFTER HAVING BEEN UP AS MUCH AS 231 POINTS THE FT 30STOCK INDEX LOST 208 POINTS TO 24863 VOLUME WAS 6801 MILLION SHARES COMPARED WITH 6987 MILLION SHARES IN THE PREVIOUS SESSION WALL STREET WHICH ALSO SANK IN EARLY DEALINGS ON THE SIGNAL BY THE US FEDERAL RESERVE HELPED DRIVE LONDON SHARES LOWER AND SPARKED FEARS IN BRITAIN OF A POSSIBLE LIQUIDATION BY US MUTUALFUND INVESTORS OF BRITISH HOLDINGS ESTIMATED AT 700 BILLION MARKET OBSERVERS ESTIMATED THE US FEDERALFUNDS RATE WOULD RISE TO 375 FROM 35 THIS IS THE FED RATE ON OVERNIGHT LOANS TO BANKS TO MEET RESERVE REQUIREMENTS TO BACK UP DEPOSITS THE LONDON BOURSE DIDN'T EXPECT SUCH A US MOVE FOR AT LEAST ANOTHER MONTH AND IT SPECULATED ABOUT A HIGHER YEAREND TARGET THAN PREVIOUSLY ESTIMATED FOR THE FED RATE THE US NEWS OVERSHADOWED BRITISH ECONOMIC DATA THAT UNDERSCORED EXPECTATIONS OF A CUT SOON IN THE BASE LENDING RATE THE RISE IN PRODUCER OUTPUT PRICES IN MARCH SLOWED FROM FEBRUARY AND FROM A YEAR EARLIER THE US REPORT ALSO SLAMMED THE BRITISH GOVERNMENT BOND MARKET REFLECTED IN LONDON STOCKS' LOSSES IN FRANKFURT THE DAX 30STOCK INDEX GAINED 2836 POINTS TO 222878 LACKING CORPORATE NEWS MANY INVESTORS SWITCHED FROM FINANCIAL TO AUTO ISSUES BECAUSE OF THEIR FAVORABLE OUTLOOKS RELEASED LAST WEEK BUT BANKING SHARES CONTINUED TO FACE PRESSURE AMID QUESTIONS ABOUT THE EFFECT ON LENDERS OF A SCANDAL INVOLVING A GERMAN PROPERTY DEVELOPER IN PARIS STOCKS FINISHED LITTLE CHANGED AFTER A RALLY FIZZLED WHEN THE FRENCH CENTRAL BANK DIDN'T CUT ITS KEY LENDING RATE AND THEN THE US RATE NEWS EMERGED PRICES HAD BEEN UP AS MUCH AS 13 FUELED BY HOPES FOR A FRENCH RATE CUT FOLLOWING GERMAN REDUCTIONS LAST WEEK BUT THE GAINS WERE WIPED OUT ON WORD THAT THE US CENTRAL BANK PLANNED TO NUDGE SHORTTERM RATES HIGHER AGAIN IN AMSTERDAM SHARES FELL AFTER CLIMBING IN EARLY ACTIVITY BECAUSE OF COVERING OF SHORT OR OVERSOLD POSITIONS IN AN OPTIONS EXPIRATION AND THEN TURNING DOWN BECAUSE OF FALLING BOND PRICES THE US RATE SURPRISE AND WEAKNESS IN NEW YORK AND LONDON STOCKS IN MILAN EQUITIES INCLUDING THOSE TRADED ELECTRONICALLY SLUMPED 24 BECAUSE OF PROFITTAKING AFTER A THREEWEEK BULL RUN CONFUSION ABOUT NEW TRADING HOURS AND WORRIES ABOUT PROSPECTS FOR FORMATION OF A NEW ITALIAN GOVERNMENT IN MADRID THE MARKET TUMBLED 25 ON WORRIES ABOUT SPANISH POLITICAL INSTABILITY FOLLOWING ACCUSATIONS OF TAX FRAUD AND FINANCIAL WRONGDOING AGAINST A FORMER GOVERNOR OF THE BANK OF SPAIN DOMESTIC AND FOREIGN INVESTORS UNWOUND POSITIONS AMID PANIC SELLING BECAUSE OF PERCEIVED POLITICAL RISKS AND SELLING INTENSIFIED ON THE US PLANS FOR A RATE INCREASE IN STOCKHOLM PRICES WERE MIXED TO HIGHER AS WORRIES ABOUT RISING SWEDISH INTEREST RATES WIPED OUT EARLY GAINS AND HIGHER BOND YIELDS SPARKED PROFITTAKING IN MEXICO CITY STOCKS PLUMMETED 28 IN REACTION TO THE COMING US RATE RISE ANXIETY THAT MEXICAN RATES ALSO COULD CLIMB AND ESTIMATES OF POOR FIRSTQUARTER MEXICAN CORPORATE RESULTS IN TOKYO THE NIKKEI 225STOCK INDEX WHICH CLIMBED 17743 POINTS FRIDAY ROSE 11273 TO 2027736 IN TRADING TUESDAY THE NIKKEI FELL 13643 POINTS TO CLOSE THE MORNING SESSION AT 2014093 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 400 MILLION SHARES DOWN FROM 4238 MILLION SHARES IN THE PREVIOUS SESSION GAINERS OUTNUMBERED LOSERS 626374 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADVANCED 1164 POINTS FRIDAY ROSE 812 TO 164324 THE NIKKEI SURGED IN MORNING DEALINGS AS OVERSEAS INVESTORS AGGRESSIVELY BOUGHT STEEL ELECTRONICS AND CONSTRUCTION SHARES AMID SOME INDEXLINKED ARBITRAGE BUYING BUT THE BUOYANT MOOD GAVE WAY AMID CONTINUED MOVES TO PICK A NEW JAPANESE PRIME MINISTER AND INDEXLINKED ARBITRAGE SELLING KNOCKED THE MAIN INDEX DOWN IT MOVED BETWEEN A SESSION LOW OF 2022244 AND HIGH OF 2049460 REACHED AFTER FOREIGN INVESTORS BOUGHT MORE ENTHUSIASTICALLY THAN IN RECENT WEEKS JOINED BY JAPANESE DEALERS AND INDIVIDUAL INVESTORS DOMESTIC INSTITUTIONAL AND CORPORATE INVESTORS MOSTLY STAYED ON THE SIDELINES IN SYDNEY SHARES ROSE IN THIN TRADING PARTLY ON DEMAND FOR STOCKINDEX FUTURES AND ON SENTIMENT THAT THE MARKET WAS OVERSOLD LAST FRIDAY BANKING STOCKS FIRMED AHEAD OF CORPORATE EARNINGS NEXT MONTH IN HONG KONG PRICES SLIPPED PARTLY BECAUSE OF SELLING IN PROPERTY STOCKS TRADING WAS DIRECTIONLESS AMID CONCERN ABOUT GOVERNMENT PLANS TO REDUCE HIGH PROPERTY PRICES AND FEARS THAT US INTEREST RATES WERE HEADED UP SOON IN SINGAPORE STOCKS JUMPED 12 BOOSTED BY INSTITUTIONS' BUYING OF BLUE CHIPS IN KUALA LUMPUR THE MARKET RALLIED 16 IN LIGHT DEALINGS ON BARGAINHUNTING AMONG BLUE CHIPS AND THE RETURN OF RETAIL INVESTORS INDIVIDUALS FOCUSED ON SPECULATIVE STOCKS THAT RECENTLY LANGUISHED IN SEOUL EQUITIES SLIPPED ON DECLINING CONFIDENCE IN THE MARKET'S SHORTTERM OUTLOOK PARTLY BECAUSE OF NEWS REPORTS THAT THE LIMIT ON FOREIGN STOCKHOLDINGS WOULDN'T BE EXPANDED AND CONCERNS THAT THE BOURSE COULD LOSE LIQUIDITY AS A RESULT OF A NEW CORPORATE OFFERING IN TAIPEI STOCKS ROSE ON INCREASING INVESTOR CONFIDENCE PARTLY IN RESPONSE TO STOCK DIVIDENDS OF THREE BIG TAIWAN STATERUN BANKS IN MANILA SHARES RALLIED 18 BUOYED BY THE TELEPHONE SECTOR AMID ACTIVE DEALINGS BY FOREIGN INVESTORS IN BANGKOK STOCKS SOARED 24 ON BROADLY POSITIVE SENTIMENT AS FOREIGN AND LOCAL PARTICIPANTS BOUGHT BLUE CHIPS FOR SHORTTERM SPECULATION AMONG CORPORATE DEVELOPMENTS IN PARIS ALCATELALSTHOM ROSE 4 FRENCH FRANCS TO 685 FRANCS 11687 A CONSORTIUM LED BY GECALSTHOM AN ENGINEERING VENTURE BETWEEN THE FRENCH COMPANY AND GENERAL ELECTRIC CO PLC OF BRITAIN UNRELATED TO A SIMILARLY NAMED US CONCERN AND THE SOUTH KOREAN GOVERNMENT SIGNED A LETTER OF INTENT TO EQUIP A KOREAN HIGHSPEED TRAIN PROJECT VALUED AT 21 BILLION 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 9404190086 940419 MANY INVESTORS ARE STILL LEERY ABOUT PUTTING MONEY INTO CDS BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL INTEREST RATES MAY BE ON THE RISE BUT FRANCES CLARKE STILL DOESN'T THINK MUCH OF THE YIELDS ON BANK CERTIFICATES OF DEPOSIT THE RATE IS STILL BELOW A GOOD STOCK DIVIDEND SAYS THE 71YEAROLD INVESTOR IN LEAWOOD KAN I'M STAYING IN THE STOCK MARKET DESPITE THE INTERESTRATE INCREASES SPURRED BY THE FEDERAL RESERVE'S CREDITTIGHTENING MOVES FEW INVESTORS ARE RUSHING HEADLONG INTO CDS FED STATISTICS SHOW THAT WHILE THE STEADY OUTFLOW OF THE PAST FEW YEARS HAS SLOWED TO A TRICKLE AND MAY EVEN BE ENDING THERE ISN'T MUCH NEW CASH COMING IN RATES JUST HAVEN'T GONE UP THAT MUCH SAYS RONALD W ROGE A FINANCIAL PLANNER IN CENTEREACH NY YOU'RE STILL BEHIND THE EIGHT BALL AFTER TAXES AND INFLATION INDEED CD YIELDS ARE STILL BELOW WHERE THEY WERE TWO YEARS AGO ABOUT THE TIME MRS CLARKE TOLD A WALL STREET JOURNAL REPORTER THAT BECAUSE OF LOW INTEREST RATES SHE WAS TAKING HER MONEY OUT OF BONDS AND CDS TO BUY STOCKS THE AVERAGE YIELD ON A ONEYEAR CD FOR INSTANCE WAS 348 LAST WEEK ACCORDING TO BANXQUOTE MONEY MARKETS TWO YEARS AGO THE WILMINGTON DEL INFORMATION SERVICE REPORTED AN AVERAGE OF 394 ON ONEYEAR CDS THE FIVEYEAR AVERAGE IS NOW 491 COMPARED WITH 622 TWO YEARS AGO IN THE SPRING OF 1989 WHEN CD YIELDS PEAKED THE AVERAGES WERE CLOSE TO 10 BANKS GENERALLY SET CD RATES IN RESPONSE TO INTERESTRATE TRENDS COMPETITIVE FACTORS AND THEIR NEED FOR FUNDS AS A RESULT YIELDS ARE HIGHER IN SOME PARTS OF THE COUNTRY THAN OTHERS IN CALIFORNIA WHERE THE ECONOMY IS STILL STAGGERING OUT OF RECESSION YIELDS ARE LOWER THAN AVERAGE IN THE MIDWEST AND SOUTHEAST WHERE THERE'S MORE ECONOMIC ACTIVITY AND DEMAND FOR FUNDS YIELDS ARE HIGHER SOME FINANCIAL INSTITUTIONS OFFER YIELDS FAR ABOVE AVERAGE BANXQUOTE REPORTED LAST WEEK FOR EXAMPLE THAT KEY BANK IN ALBANY NY WAS PAYING 470 ON A ONEYEAR CD THE YIELD ON A FIVEYEAR CD AT FIRST DEPOSIT NATIONAL BANK IN TILTON NH WAS 632 SOME DEPOSITORS ARE RESPONDING AFTER A COUPLE OF YEARS OF CONTINUED OUTFLOWS WE'VE SEEN VERY SLIGHT GROWTH SAYS JOHN PERKNER OF BARNETT BANKS IN JACKSONVILLE FLA HE ADDS THAT MORE CUSTOMERS ARE RENEWING THEIR CDS THAN IN RECENT YEARS APRIL TRADITIONALLY HAS BEEN A BIG MONTH FOR CDS AS PEOPLE FUND INDIVIDUAL RETIREMENT ACCOUNTS AND DECIDE WHAT TO DO WITH INCOMETAX REFUNDS BUT THE MONTH HAS BECOME LESS IMPORTANT FOR BANKERS THAN IT WAS A FEW YEARS AGO STEADY OUTFLOWS HAVE REDUCED THE VOLUME OF CDS COMING DUE THIS MONTH AND MANY BANKS HAVE BEEN OFFERING UNCONVENTIONAL MATURITIES BOTH TO DISTRIBUTE THEIR INFLOWS THROUGHOUT THE YEAR AND TO MEET CUSTOMERS' NEEDS NEW YORK'S APPLE BANK FOR SAVINGS FOR EXAMPLE IS CURRENTLY PROMOTING 20MONTH AND 40MONTH CDS IN MOST PARTS OF THE COUNTRY THERE'S VERY LITTLE ACTION COMPARED WITH PAST APRILS BANKS ARE RELUCTANT TO RAISE RATES ACROSS THE BOARD SAYS DAVID THIBODEAU EXECUTIVE VICE PRESIDENT OF THIRD NATIONAL BANK IN NASHVILLE WE AREN'T IN NEED OF THE MONEY AND IT'S A WAY TO MANAGE YOUR EXPENSES CD YIELDS ARE EXPECTED TO RISE SLOWLY DURING THE COMING MONTHS PICKUP IN LOAN DEMAND JUST HASN'T HAPPENED YET SAYS ROBERT K HEADY PUBLISHER OF BANK RATE MONITOR A NORTH PALM BEACH FLA NEWSLETTER WE'RE ON AN UPWARD ROLLER COASTER BUT WE'RE CARRYING A LOT OF BAGGAGE FROM THE RECESSION HE PREDICTS SHORTTERM CD YIELDS WILL RISE LESS THAN A PERCENTAGE POINT IN THE NEXT SIX MONTHS FINANCIAL PLANNERS GENERALLY DON'T RECOMMEND CDS EVEN FOR THE MOST CONSERVATIVE INVESTORS A ONEYEAR CD AT 4 IS JUST NOT ATTRACTIVE ENOUGH SAYS STEVEN ENRIGHT A PLANNER IN RIVER VALE NJ A GOOD BONDFUND MANAGER WHO'S NOT TAKING A LOT OF RISK SHOULD BE ABLE TO BEAT THAT MR ROGE THE CENTEREACH NY PLANNER NOTES THAT TREASURY SECURITIES GENERALLY OFFER BETTER YIELDS THAN CDS THESE DAYS AND THE INCOME IS EXEMPT FROM STATE AND LOCAL TAXES THE RECENT TURMOIL IN THE STOCK AND BOND MARKETS HAS LED SOME INVESTORS TO PULL MONEY OUT OF STOCK AND BOND MUTUAL FUNDS BUT MUCH OF THAT CASH SEEMS TO BE GOING INTO MONEYMARKET FUNDS THE ASSETS OF MONEY FUNDS OPEN TO INDIVIDUALS SOARED BY NEARLY 12 BILLION DURING THE FIRST TWO WEEKS OF APRIL PEOPLE EXPECT INTEREST RATES TO RISE AND THEY DON'T WANT TO LOCK IN AT LOWER RATES SAYS NEAL LITVACK EXECUTIVE VICE PRESIDENT OF FIDELITY INVESTMENTS IN BOSTON MR LITVACK ADDED THAT AFTER TWO WEEKS OF OUTFLOWS MONEY STARTED FLOWING INTO CONSERVATIVE STOCK FUNDS LAST WEEK AS THE MARKET STABILIZED HE NOTED THAT 99 OF THE INVESTORS IN FIDELITY STOCK FUNDS STAYED PUT DURING THE RECENT MARKET TURMOIL AND MORE THAN HALF THOSE QUESTIONED IN A RECENT SURVEY SAID THEY PLAN TO PUT MONEY IN STOCK FUNDS IN THE NEXT SIX MONTHS MRS CLARKE THE KANSAS INVESTOR BUYS MOSTLY INDIVIDUAL STOCKS FOR SEVERAL FAMILY TRUSTS THAT SHE MANAGES PRICES WOULD HAVE TO FALL A LOT FURTHER SHE SAYS TO OUTWEIGH THE TAX CONSEQUENCES OF SELLING SHARES THAT APPRECIATED GREATLY DURING THE BULL MARKET OF THE LAST FEW YEARS I'M HOPING TO PICK UP SOME MORE OF MY FAVORITE STOCKS IF THEY GET DOWN LOW ENOUGH SAYS MRS CLARKE A UNIVERSITY OF CHICAGO BUSINESS SCHOOL GRADUATE ONE HAS TO HAVE STEEL NERVES BUT IT DOES PAY OFF 9404190085 940419 LEISURE & ARTS BOOKSHELF ACADEMIC LEFT VS SCIENCE BY JONATHAN RAUCH WE LEARN WISDOM FROM OUR FRIENDS BUT CUNNING FROM OUR ENEMIES THE FEMINISTS AND DECONSTRUCTIONISTS AND AFROCENTRISTS AND OTHERS WHO TODAY ARE ATTACKING THE LEGITIMACY OF SCIENCE ADAPTED THEIR ARGUMENTS FROM OF ALL PEOPLE CHRISTIAN CREATIONISTS THE CREATIONISTS WANT GENESIS TAUGHT IN THE SCHOOLS BUT THEY DIDN'T GET ANYWHERE UNTIL THEY STARTED CLAIMING THAT SCIENCE IS OPPRESSIVE SCIENCE THEY CHARGED SETS THE RULES SO THAT ONLY IT CAN WIN AND THEN SHOVES OUT MINORITY VIEWS INCLUDING THEIRS UNFAIR THEY SAID AUTHORITARIAN AND LITTLE BY LITTLE THE SCHOOLS ARE GIVING WAY BUT IT'S NOT CREATIONISTS THEY'RE MAINLY GIVING WAY TO IT'S THE ASSORTED ACTIVISTS AND ACADEMICS WHO HAVE TAKEN UP THE CREATIONISTS' ARGUMENT BUT WITH A DIFFERENT TWIST SCIENCE THESE PEOPLE SAY IS A WHITE MALE EUROPEAN WORLDVIEW THAT SUBORDINATES THE VIEWS OF WOMEN AND MINORITIES SO ACTIVISTS DEMAND THAT AFROCENTRIC VERSIONS OF HISTORY SUCH AS THOSE THAT HOLD THAT THE ANCIENT EGYPTIANS WERE BLACK OR THAT EARLY AFRICANS PIONEERED QUANTUM PHYSICS BE TAUGHT IN SCHOOLS THEY CALL FOR FEMINIST ALGEBRA COMPLETE WITH STORY PROBLEMS PRESENTING FEMALE HEROES AND BREAKING GENDER STEREOTYPES ALL THIS MIND IS TO BE DONE IN AN ALGEBRA CLASS PAUL R GROSS AND NORMAN LEVITT MUSE RUEFULLY IN HIGHER SUPERSTITION THE ACADEMIC LEFT AND ITS QUARRELS WITH SCIENCE JOHNS HOPKINS UNIVERSITY PRESS 314 PAGES 2595 AS FAR AS I KNOW THEIR BOOK IS THE FIRST BY WORKING SCIENTISTS TO PULL UP THE PC ATTACK ON SCIENCE BY ITS ROOTS AND SHAKE IT HARD THE RESULTS ARE REFRESHING MOST OF WHAT HAS BEEN WRITTEN ABOUT PC AND ITS OFFSHOOTS FOCUSES ON THE MOVEMENT'S LEFTWING POLITICS AND AUTHORITARIAN STYLE MESSRS GROSS AND LEVITT LEVEL A DIFFERENT CHARGE THAT AT LEAST WHERE SCIENCE IS CONCERNED THE RADICALS DON'T HAVE ANY IDEA WHAT THEY'RE TALKING ABOUT IN SUM THEY SAY WE ARE ACCUSING A POWERFUL FACTION IN MODERN ACADEMIC LIFE OF INTELLECTUAL DERELICTION MR GROSS IS A BIOLOGIST AND FORMER DIRECTOR OF THE WOODS HOLE MARINE BIOLOGICAL LABORATORY MR LEVITT IS A MATHEMATICIAN AT RUTGERS UNIVERSITY BETWEEN THEM THEY'RE IN A GOOD POSITION TO PULL RANK ON ENGLISH PROFESSORS AND CULTURAL CRITICS WHO DECONSTRUCT SCIENCE WITHOUT ACTUALLY KNOWING ANY SUCH PEOPLE'S WORK SHOWS A GREAT DEAL OF PSYCHOTALK A GOOD DEAL OF LITERARY LANGUAGE AND A GLARING ABSENCE OF KNOWLEDGE OF THE SUPPOSED SUBJECT THE AUTHORS WRITE IT SEEMS CLEAR TO US IN FACT THAT ON THE WHOLE THE ACADEMIC LEFT'S CRITIQUES OF SCIENCE HAVE ENJOYED AN ASTONISHING FREE RIDE IT IS NOT ENOUGH SAY THE AUTHORS TO TREAT SCIENTIFIC THEORIES AS METAPHOR AND DENOUNCE THEM ON THAT BASIS AND IT IS NOT ENOUGH TO INSPECT SCIENTIFIC PAPERS AND DISCOVER SEXIST FIGURES OF SPEECH AS WHEN FEMINISTS COMPLAIN THAT BIOLOGY DEPICTS SPERM AS ACTIVE AND EGGS AS PASSIVE IF YOU WANT TO SAY SCIENCE IS WRONG YOU MUST UNDERSTAND THE RELEVANT IDEAS DEBUNK THEM AND SUGGEST SOMETHING BETTER CREATIONISTS HAVE BEEN NOTORIOUSLY UNSUCCESSFUL AT DOING THAT BUT AT LEAST THEY'VE TRIED THE PC CRITICS CAN'T EVEN SAY THAT MUCH SEARCHING FOR EXAMPLES OF SCIENTIFIC KNOWLEDGE INFORMED REFORMED ENHANCED BY FEMINISM THE AUTHORS FIND NONE INCESSANT LINGUISTIC CRITICISM HAS NOT YET PRODUCED A SINGLE REVISION OF THE BODY OF SERIOUS SCIENCE AS MIGHT BE EXPECTED THE AUTHORS ARE AT THEIR WEAKEST ANALYZING CULTURE AS WHEN THEY TRACE THE ROOTS OF ACADEMIC LEFTISM AND AT THEIR ROLLICKING BEST LOOKING AT WHAT RADICAL ACCOUNTS OF SCIENCE REALLY AMOUNT TO THE PHILOSOPHER STEVEN BEST BUILDS HIS CALLS FOR POSTMODERN SCIENCE PARTLY ON CHAOS THEORY AND QUANTUM PHYSICS UNFORTUNATELY SAY MESSRS GROSS AND LEVITT MR BEST HAS LITTLE GRASP OF EITHER FOR INSTANCE HE CONTRASTS CHAOS THEORY WITH NEWTON'S LINEAR EQUATIONS BUT OOPS THE AUTHORS EXPLAIN NEWTON'S EQUATIONS OF PLANETARY MOTION ARE OF COURSE NONLINEAR THE LITERARY SCHOLAR N KATHERINE HAYLES ALSO SEEMS TO HAVE A SHAKY GRASP OF THE SUBATOMIC REALM HER STATEMENT THAT BY MIDCENTURY SPECIAL RELATIVITY AND QUANTUM MECHANICS WERE PLAYED OUT OR SUBSTANTIALLY MODIFIED WILL COME AS A TERRIBLE SHOCK TO PHYSICISTS MARYANNE CAMPBELL AND RANDALL K CAMPBELLWRIGHT ADVOCATES OF FEMINIST ALGEBRA WRITE THAT METAPHOR PLAYS A CENTRAL ROLE IN THE CONSTRUCTION OF MATHEMATICS NO REPLY THE AUTHORS IT DOES NOT CERTAINLY NOT THE KINDS OF METAPHORS THIS PAPER ALLUDES TO THE TOUGHEST TREATMENT OF ALL IS RESERVED FOR SOCALLED AFROCENTRIC SCIENCE WITH ITS FLAGRANT FALSIFICATION OF SCIENCE AND OF HISTORY AND ETHNOGRAPHY AS WELL IN THE SERVICE OF AFROCENTRIC CHAUVINISM THE AUTHORS ARE DISMAYED BY THE INANE BUT BY NOW INERADICABLE HISTORICAL FALLACY THAT ANYTHING SOUTH OF THE MEDITERRANEAN IS BLACK' AND BY SUCH ASSERTIONS AS THAT A SMALL WOODEN FIGURE OF A BIRD PRESUMABLY MADE IN EGYPT DURING THE HELLENISTIC PERIOD IS AN EXAMPLE OF AFRICAN EXPERIMENTAL AERONAUTICS ONE CAN ACCUSE MESSRS GROSS AND LEVITT OF SLIPPING INTO POMPOSITY ON OCCASION THE STENCH OF HISTORY IS EVER PRESENT IN OUR NOSTRILS BUT NEVER OF MINCING WORDS THEIR BOOK SHOWS THAT THE NEW ATTACK ON SCIENCE IS LESS PROFOUND THAN IT SEEMS THOUGH NOT LESS MISCHIEVOUS MR RAUCH IS AUTHOR OF KINDLY INQUISITORS THE NEW ATTACKS ON FREE THOUGHT UNIVERSITY OF CHICAGO PRESS AND MOST RECENTLY DEMOSCLEROSIS THE SILENT KILLER OF AMERICAN GOVERNMENT TIMES BOOKS 9404190084 940419 KIDDER DEBACLE IS LIKELY TO MEAN GE AGAIN WILL TRY TO SHED UNIT BY WALL STREET JOURNAL REPORTERS WILLIAM M CARLEY ALEXANDRA PEERS AND AMAL KUMAR NAJ IN NEW YORK KIDDER PEABODY GROUP INC'S LATEST BLUNDER INCREASES THE CHANCES THAT PARENT GENERAL ELECTRIC CO WILL ONCE AGAIN SEEK TO SHED THE INVESTMENT BANK WALL STREET ANALYSTS AND INVESTMENT BANKERS SAID IN AN INTERVIEW CHAIRMAN JOHN F WELCH JR STOPPED SHORT OF DENYING THAT GE MIGHT EVENTUALLY SELL ITS KIDDER PEABODY UNIT FOLLOWING THE PHANTOMTRADING SCANDAL OVER THE WEEKEND KIDDER FIRED ITS TOP GOVERNMENTBOND TRADER FOR ALLEGEDLY MAKING FICTITIOUS TRADES AND SAID IT WILL TAKE A 350 MILLION PRETAX CHARGE AGAINST FIRSTQUARTER EARNINGS KIDDER WAS DOING FINE BEFORE THIS AND YOU DON'T CHANGE STRATEGIC DIRECTION OVER A BAD APPLE MR WELCH SAID BUT THE EXECUTIVE DIDN'T DENY THAT GE MIGHT SELL KIDDER AT SOME POINT YOU NEVER SAY NEVER ABOUT ANY BUSINESS ANYWHERE HE SAID WALL STREET ANALYSTS AND INVESTMENT BANKERS ARE BETTING ON A SALE OF THE UNIT THOUGH SELLING ANY INVESTMENT BANK AND ESPECIALLY KIDDER WOULD BE DIFFICULT IN THE CURRENT SOUR CLIMATE GE TRIED UNSUCCESSFULLY TO SELL KIDDER TWO YEARS AGO THE LATEST INCIDENT INCREASES GE'S RESOLVE TO UNLOAD THE UNIT WHEN MARKET CONDITIONS ARE FAVORABLE SAID RUSSELL LEAVITT AN ANALYST AT SALOMON BROTHERS WHO CONVEYED THAT MESSAGE TO HIS FIRM'S SALES FORCE AFTER A GE CONFERENCE CALL MR WELCH IS CLEARLY CHAGRINED THIS IS UGLY AWFUL AND WE'RE ANGRY AS HELL HE SAID BUT HE SAID HE WOULDN'T FIRE MICHAEL A CARPENTER KIDDER'S CHAIRMAN AND CHIEF EXECUTIVE ANY MORE THAN I WOULD FIRE BRIAN ROWE THE HEAD OF GE'S JETENGINE UNIT WHERE A SALESMAN AND AN ISRAELI GENERAL ALLEGEDLY SIPHONED FUNDS FROM A GE JETENGINE PROJECT MR WELCH ADDED THAT IF KIDDER'S MR CARPENTER HAD BEEN COVERING UP HE WOULD ALREADY BE GONE BUT THE MINUTE HE HEARD ABOUT THIS HE JUMPED ALL OVER IT MR WELCH ADDED THAT THE SCHEME COULD HAVE BEEN DISCOVERED EARLIER BUT THAT'S HINDSIGHT MR WELCH ALSO SAID HE CALLED EDWARD CERULLO KIDDER'S HEAD OF FIXEDINCOME OPERATIONS AND EXPRESSED HIS FAITH IN HIM THE CHALLENGE NOW IS HOW THE KIDDER EXECUTIVES HANDLE THIS MR WELCH SAID LET'S NOT KID OURSELVES THIS IS A KICK IN THE TEETH FOR THOSE GUYS GE'S CHAIRMAN CAUTIONED THAT HIS VIEWS REFLECTED ONLY A SHORT INVESTIGATION AND MORE INFORMATION COULD TURN UP AT THIS POINT WE'RE ONLY 72HOUR EXPERTS MR WELCH SAID ADDING WE'VE GOT ARMIES AT KIDDER TRYING TO FIND OUT WHAT WENT WRONG MR WELCH SAID THE SCANDAL CAUGHT HIM COMPLETELY OFF GUARD HE SAID HE GOT THE FIRST INKLING OF TROUBLE A WEEK AGO WHEN MR CARPENTER APPROACHED HIM AT THE COMPANY'S FAIRFIELD CONN HEADQUARTERS MIKE TOLD ME OFFHANDEDLY THEY WERE HAVING A RECONCILIATION PROBLEM BUT HE DIDN'T THINK THERE WOULD BE ANY IMPACT ON THE BOTTOM LINE HE SAID THREE DAYS LATER MR CARPENTER TOLD MR WELCH THERE WOULD BE AN IMPACT RANGING SOMEWHERE BETWEEN ZERO AND 350 MILLION PRETAX MR WELCH ADDED FRIDAY MORNING MR WELCH DISPATCHED DENNIS DAMMERMAN GE SENIOR VICE PRESIDENT FOR FINANCE AND A TEAM OF AUDITORS TO MEET WITH KIDDER EXECUTIVES IN MANHATTAN WE DIDN'T GET THE NUMBER THE AMOUNT OF THE FALSE TRADES UNTIL LATE SATURDAY NIGHT EARLY SUNDAY MR WELCH SAID AND ON SUNDAY MR WELCH SPENT THE DAY AT KIDDER HEADQUARTERS PART OF THE TIME CONFERRING WITH GARY LYNCH THE OUTSIDE ATTORNEY HIRED TO INVESTIGATE THE SCANDAL FOR GE KIDDER HAS ALWAYS BEEN A TROUBLED ACQUISITION GE BOUGHT KIDDER IN 1986 FOR 602 MILLION AS PART OF ITS BID TO CREATE A FINANCIAL SUPERMARKET THAT EFFORT LIKE SIMILAR EFFORTS BY AMERICAN EXPRESS CO AND SEARS ROEBUCK & CO NEVER GELLED MOREOVER THE TWO CORPORATE CULTURES WITH GE EMPHASIZING TEAMWORK AND KIDDER RISKTAKING AND A STAR SYSTEM NEVER MESHED LESS THAN A YEAR AFTER GE BOUGHT ITS STAKE KIDDER BECAME EMBROILED IN A HUGE INSIDERTRADING SCANDAL IN FEBRUARY 1987 TWO OF THE FIRM'S TOP BANKERS WERE HANDCUFFED AND HAULED OUT OF THE BUILDING BY FEDERAL PROSECUTORS WHILE CHARGES AGAINST THOSE TWO MEN WERE LATER DROPPED GE PAID 26 MILLION TO THE SECURITIES AND EXCHANGE COMMISSION TO SETTLE CHARGES RELATING TO THE USE OF INSIDE INFORMATION BY THE FIRM'S THENHEAD OF MERGERS MARTIN SIEGEL THEN THE WALL STREET SLUMP HIT AND KIDDER'S INVESTMENT BANKING INCOME TOOK A DIVE ALL TOLD SINCE THE ACQUISITION GE HAS PUMPED NEARLY 1 BILLION INTO ITS SECURITIES UNIT PEOPLE FAMILIAR WITH THE FIRM SAY YET THE LATEST ALLEGATIONS OF A TRADING SCHEME COME AT A TIME WHEN THE PROFITABILITY OF KIDDER'S CORE BUSINESS OF UNDERWRITING MORTGAGEBACKED SECURITIES WHICH APPARENTLY WASN'T INVOLVED IN THE PHANTOM TRADES IS SOARING KIDDER EARNED 1169 MILLION IN FEES IN THE FIRST QUARTER FROM UNDERWRITING MORTGAGEBACKED SECURITIES STOCKS AND BONDS NEARLY QUADRUPLE THE 299 MILLION IN FEES A YEAR EARLIER ACCORDING TO SECURITIES DATA CO A NEWARK NJ FIRM THAT TRACKS AND RANKS WALL STREET FIRMS THE FIGURES ON FEES ARE APPROXIMATE SINCE THEY CREDIT ALL PROFITS FROM A DEAL TO ITS LEAD MANAGER KIDDER LEAPFROGGED TO THE NO 2 SPOT AMONG ALL WALL STREET SECURITIES FIRMS IN THE FIRST QUARTER FROM NO 6 A YEAR EARLIER CHIEFLY DUE TO ITS DOMINANCE IN THE MORTGAGEBACKED FIELD KIDDER LED IN MORTGAGEBACKED UNDERWRITING WITH A 25 MARKET SHARE AND 55 OFFERINGS TOTALING 254 BILLION MORE THAN DOUBLE THE NUMBER OF ISSUES UNDERWRITTEN BY ANY OF ITS COMPETITORS WALL STREET ANALYSTS MANY OF WHOM HAVE BUY OR STRONG BUY RECOMMENDATIONS ON GE STOCK MINIMIZED THE IMPACT OF KIDDER'S PROBLEMS ON GE CS FIRST BOSTON ANALYST MARTIN A SANKEY SAID THE TRADING SCHEME IS NOT GOING TO IMPERIL THE SAFETY OR VITALITY OF GE THE 210 MILLION AFTERTAX CHARGE WORKS OUT AS A 25CENTASHARE IMPACT ON A COMPANY THAT WILL EARN 650 OR 7 A SHARE THIS YEAR CS FIRST BOSTON IS A UNIT OF CS HOLDINGS INC IN FACT ANALYSTS AND INVESTMENT BANKERS SAY THE BIGGEST IMPACT COULD BE TO STIFFEN GE'S RESOLVE NOT TO FUND KIDDER'S EFFORTS TO BUILD A DERIVATIVESTRADING UNIT GE HAS SO FAR BALKED AT PUTTING UP THE MORE THAN 100 MILLION OF CAPITAL THAT CREDITRATING AGENCIES SAY WOULD BE REQUIRED TO LAUNCH SUCH A UNIT DESPITE REPEATED REQUESTS BY KIDDER EXECUTIVES PEOPLE FAMILIAR WITH THE SITUATION SAY THESE SEPARATELY CAPITALIZED SUBSIDIARIES TRADE SWAPS OPTIONS AND OTHER DERIVATIVE PRODUCTS AND ARE HUGELY PROFITABLE SOURCES OF BUSINESS FOR SECURITIES FIRMS GE WILL NEVER PONY UP THE MONEY NOW AND THAT'LL KEEP KIDDER SECONDTIER SAID ONE INVESTMENT BANKER GENERAL ELECTIC STOCK SLID ON NEWS OF KIDDER'S PROBLEMS FALLING AS LOW AS 94 BEFORE SETTLING AT 94875 DOWN 1875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9404190083 940419 TECHNOLOGY & HEALTH LILLY AND MYLAN TO JOINTLY MARKET GENERIC TAGAMET BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL ELI LILLY & CO AGREED TO JOINTLY MARKET MYLAN LABORATORIES INC'S GENERIC VERSION OF A BIG ULCER DRUG THAT'S ABOUT TO LOSE PATENT PROTECTION REFLECTING THE DRUG MARKET'S SHIFTING DYNAMICS THE PACT ANNOUNCED YESTERDAY CALLS FOR LILLY'S SALES FORCE TO BEGIN MARKETING MYLAN'S LOWERCOST VERSION OF SMITHKLINE BEECHAM PLC'S TAGAMET WHICH HAS COMPETED DIRECTLY WITH LILLY'S OWN AXID LILLY AND PITTSBURGHBASED MYLAN WILL MARKET MYLAN'S VERSION OF THE DRUG CIMETIDINE THE GENERIC NAME FOR TAGAMENT TO MANAGEDCARE CUSTOMERS MYLAN IS THE ONLY COMPANY SO FAR WITH FOOD AND DRUG ADMINISTRATION APPROVAL TO LAUNCH A GENERIC VERSION LILLY'S AXID ULCER DRUG HAS YIELDED HEALTHY PROFITS FOR THE COMPANY AND ITS PATENT PROTECTION WON'T END UNTIL 2002 SALES LAST YEAR WERE NEARLY 400 MILLION BUT THE LOOMING LOSS OF PROFIT PROTECTION FOR TAGAMET HAS CLOUDED THE PROFIT PICTURE FOR BRANDED ULCER DRUGS INCLUDING GLAXO HOLDINGS PLC'S ZANTAC WHICH LAST YEAR WAS THE WORLD'S BIGGESTSELLING DRUG TAGAMET WAS THE FIRST OF A CLASS OF DRUGS THAT HELP HEAL ULCERS BY REDUCING STOMACH ACID THE LILLYMYLAN PROMOTION WILL FOCUS ON CIMETIDINE AS A TREATMENT FOR UNCOMPLICATED GASTROINTESTINAL DISEASES PRIMARILY ULCERS LILLY SAID INDIANAPOLISBASED LILLY INTENDS TO MARKET AXID TO MANAGEDCARE BUYERS FOR TREATING AN AILMENT KNOWN AS GASTROESOPHAGEAL REFLUX DISEASE FOR WHICH CIMETIDINE ISN'T INDICATED AXID WILL ALSO BE PROMOTED FOR THOSE PATIENTS WHO CAN'T TOLERATE OR DON'T RESPOND TO CIMETIDINE LILLY WOULDN'T ELABORATE ON THE FEE IT WILL RECEIVE BASED ON SALES OF MYLAN'S PRODUCT TO MANAGEDCARE CUSTOMERS SEPARATELY LILLY RELEASED FIRSTQUARTER EARNINGS THAT WHILE MARRED BY A SPECIAL CHARGE WERE GENERALLY IN LINE WITH ANALYSTS' EXPECTATIONS NET AFTER A 56 MILLION PRETAX CHARGE LINKED TO A PRODUCT RECALL ANNOUNCED EARLIER WAS 3307 MILLION OR 114 A SHARE IN THE YEARAGO PERIOD NET AFTER A 109 MILLION ACCOUNTING CHARGE WAS 3626 MILLION OR 123 A SHARE SALES ROSE 49 TO 164 BILLION FROM 156 BILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING LILLY SHARES CLIMBED 125 TO 4875 9404190082 940419 CBOT AGREES TO PAY 300000 TO SETTLE CHARGES OVER STOTLER WASHINGTON THE CHICAGO BOARD OF TRADE AGREED TO PAY 300000 TO SETTLE CIVIL CHARGES THAT IT FAILED TO PROPERLY POLICE STOTLER & CO IN THE MONTHS BEFORE THE CHICAGO FUTURES FIRM COLLAPSED IN 1990 THE SETTLEMENT RESOLVES A CIVIL COMPLAINT FILED 11 MONTHS AGO AGAINST THE CBOT BY THE COMMODITY FUTURES TRADING COMMISSION AMONG OTHER THINGS THE CFTC ACCUSED THE CBOT OF FAILING TO ENFORCE ITS OWN CAPITAL RULES AGAINST STOTLER IN 1989 WHEN THE FIRM OVERSTATED ITS CAPITAL BY 85 MILLION STOTLER COLLAPSED AMID FRAUD ALLEGATIONS AFTER FAILING TO MEET FUTURESEXCHANGE CAPITAL REQUIREMENTS THE CFTC ALLEGED THAT THE FIRM'S FINANCIAL RECORDS WERE INADEQUATE AS FAR BACK AS 1987 AND THAT THE CBOT FAILED TO NOTIFY THE AGENCY OF THE DEFICIENCIES THE CBOT NEITHER ADMITTED NOR DENIED THE ALLEGATIONS IN AGREEING TO THE SETTLEMENT BUT IN A STATEMENT YESTERDAY CBOT'S PRESIDENT AND CHIEF EXECUTIVE OFFICER THOMAS DONOVAN DEFENDED THE EXCHANGE'S OVERSIGHT OF STOTLER AS A RESULT OF OUR CAREFUL AND CONTINUOUS SCRUTINY OF STOTLER'S FINANCIAL CONDITION WE INSURE THAT NO FUTURES CUSTOMER OF STOTLER & CO LOST ONE CENT OF CUSTOMER SEGREGATED FUNDS DESPITE STOTLER'S FRAUDULENT EFFORTS MR DONOVAN SAID CBOT CHAIRMAN PATRICK ARBOR SAID THE EXCHANGE CHOSE TO DROP ITS CHALLENGE OF THE CFTC COMPLAINT BECAUSE THE FUNDS AND HUMAN RESOURCES WE WOULD HAVE TO DEVOTE TO FURTHER LITIGATION CAN INSTEAD BE PUT TO A MORE POSITIVE USE FOR OUR MEMBERS AND CUSTOMERS IN ADDITION TO THE FINE THE CBOT AGREED TO BE MORE DILIGENT IN ITS OVERSIGHT OF MEMBER FIRMS AND FOR THE NEXT TWO YEARS REPORT MONTHLY TO THE CFTC ON THE EX CHANGE'S FINANCIALSURVEILLANCE ACTIVITIES THE CBOT ALSO AGREED TO TAKE STEPS TO ELIMINATE ANY CONFLICT OF INTEREST BETWEEN OFFICERS OF MEMBER FIRMS WHO ALSO SERVE ON THE CBOT BOARD 9404190081 940419 LEISURE & ARTS THE GALLERY A PRESIDENT SHARES' THE FRUITS OF 28 YEARS IN POWER BY MARGOT COHEN JAKARTA INDONESIA A GENTLE GUST OF GAMELAN MUSIC GREETS THE VISITOR TO THE PURNA BHAKTI PERTIWI MUSEUM FLOORS OF POLISHED WHITE MARBLE STRETCH AS FAR AS THE EYE CAN SEE SET OFF BY ORNATE CARVINGS OF RICH BROWN WOOD FOR A MOMENT THE VISITOR MAY SENSE THAT HE HAS STUMBLED INTO A CHIC JAVANESE WEDDING AT ONE OF THIS CAPITAL CITY'S FIVESTAR HOTELS THAT IMPRESSION MAY NOT BE FAR OFF THE MARK THE NEW 19 MILLION MUSEUM DOES CELEBRATE THE SACRED UNION OF PRESIDENT SUHARTO AND THE YIELDING MAIDEN STATE OF INDONESIA BUT THERE IS NO SUCH THING AS DEATH DO US PART FOR THIS JAVANESE BRIDEGROOM NOW 72 YEARS OLD WHILE THE SUHARTO FAMILY MAUSOLEUM STANDS READY AND WAITING FOR HIM AT THE TOP OF A HILL IN CENTRAL JAVA THE MUSEUM IN EAST JAKARTA DRIPS IMMORTALITY THE MUSEUM WAS BUILT TO COMMEMORATE MR SUHARTO'S LIFETIME ACHIEVEMENTS AS REFLECTED IN ITS SANSKRITBASED NAME MEANING PERFECT SERVICE GIVEN TO THE MOTHERLAND THE HOMAGE MAY SEEM A TAD PREMATURE IN VIEW OF THE PRESIDENT'S REPORTED GOOD HEALTH AND THE ABSENCE OF ANY CLEAR SUCCESSOR BUT GENERATIONS TO COME ARE CERTAIN TO BE STIRRED BY PAK HARTO'S WISDOM HIS DEDICATION AND HIS WILLINGNESS TO SACRIFICE FOR THE GOOD OF THE NATION PREDICTS A DISEMBODIED VOICE BOOMING FROM THE MULTICOLORED COMPUTER SCREENS INSTALLED IN STRATEGIC LOCATIONS THE FIRST INTIMATION OF SUHARTO IMMORTALITY LIES IN THE MUSEUM'S SLOPING ARCHITECTURE FANS OF WAYANG KULIT INDONESIAN SHADOW PUPPETRY WILL SPOT SCALLOPED INNER DOMES IN THE SHAPE OF THE LEGENDARY WIJAYA KUSUMA THE FLOWER THAT BRINGS THE DEAD BACK TO LIFE FROM THE OUTSIDE THE BUILDING LOOKS LIKE A CLUSTER OF WHITE STYROFOAM CONES FLANKED BY A TORCH MUSEUM OFFICIALS EXPLAIN THAT THE SHAPE DERIVES FROM JAVANESE RICE MOUNDS WHICH SYMBOLIZE GRATITUDE TO GOD BUT WAYANG MAVENS NOTE THE BUILDING'S STRIKING RESEMBLANCE TO MAHKUTHA A REGAL CROWN INVESTED WITH MAGICAL POWER MR SUHARTO'S LIVING LEGEND OCCUPIES FOUR FLOORS LIKE WEDDING GUESTS ON A RECEIVING LINE VISITORS MOVE SINGLEFILE ALONG THE CURVED WALLS OF THE FIRST ROOM PEERING AT THE BUSY BALINESECARVED MURAL THAT TRACES THE INTERTWINING HISTORY OF MR SUHARTO AND THE NATION FROM THE REVOLUTION AGAINST THE DUTCH TO THE EVOLUTION OF THE ECONOMY THE LEADER'S PROFILE DOMINATES EVERY SCENE INDONESIA'S FIRST PRESIDENT SUKARNO ONLY APPEARS ONCE AS HE PREPARES TO STEP DOWN FROM POWER THERE IS ONLY ONE JARRING NOTE TO MAR THE MURAL'S PICTURE OF TOTAL SUHARTO TRIUMPH ENGLISH EXPLANATIONS BELOW REPEATEDLY REFER TO PRESIDENT SUHARTO'S NEW ORDER GOVERNMENT AS THE NEW ORDEAL BUT JUDGING FROM THE MUSEUM'S CONTENTS THE MAIN ORDEAL SEEMS TO HAVE BEEN WHERE TO PUT ALL THE WEDDING PRESENTS ACCUMULATED DURING 28 YEARS IN POWER MR SUHARTO A MAN OF HUMBLE AGRARIAN BEGINNINGS IS KNOWN FOR HIS MODEST LIFESTYLE SO IT MUST HAVE BEEN A RELIEF FOR HIM TO UNLOAD THE DAZZLING QUANTITY OF FINE CRYSTAL PORCELAIN SCULPTURE AND OTHER TOKENS OF APPRECIATION FROM FRIENDS AT HOME AND OVERSEAS ITEMS FROM THE FAMILY'S PERSONAL COLLECTION MAKE UP ABOUT 40 OF THE EXHIBIT THE CAPTIONS ARE MORE INTRIGUING THAN THE GLEAMING OBJECTS BEHIND GLASS NUMBING IN THEIR ABUNDANCE HERE INDONESIA'S SHADOWY WEB OF BUSINESS AND POLITICS SUDDENLY SEEMS CRYSTALCLEAR HANDPAINTED CERAMIC BOXES AND OTHER TASTEFUL GIFTS FROM MITSUBISHI MITSUI AND JAPAN'S TRADE AND INDUSTRY MINISTER ARE PRECIOUS SYMBOLS OF JAPAN'S STATUS AS INDONESIA'S TOP INVESTOR PORCELAIN FROM HENRY KISSINGER AND RICHARD NIXON SUBTLY RECALLS US SUPPORT FOR THE NEW ORDER'S STAUNCH ANTICOMMUNISM A GRACEFUL GLASS VASE COMES FROM CHASE MANHATTAN BANK ONE OF THE CREDITORS FOR INDONESIA'S 80 BILLION FOREIGN DEBT SOME WEDDING GUESTS MAY HAVE FALLEN OUT OF FAVOR BUT THAT DOESN'T MEAN THEIR GIFTS HAVE BEEN RELEGATED TO THE BROOM CLOSET A DISPLAY OF BLUE PORCELAIN CONTAINS A TRAY FROM JP PRONK THE DUTCH MINISTER FOR COOPERATIVES AND DEVELOPMENT NOT LONG AGO MR PRONK INFURIATED THE PRESIDENT AND HIS CABINET WITH STINGING CRITICISM OF HUMANRIGHTS ABUSES ILLEGAL LOGGING AND FAULTY FAMILYPLANNING PROGRAMS THUMBING ITS NOSE AT ITS FORMER COLONIAL MASTER INDONESIA RETALIATED BY REJECTING DUTCH AID LAST YEAR BUT THE TRAY STAYED THE MOST EYEPOPPING ITEMS IN THE COLLECTION COME FROM MR SUHARTO'S RELATIVES WHO DO NOT SHARE THE PRESIDENT'S REPUTATION FOR MODEST LIVING A 13FOOTHIGH SHIP CARVED OUT OF 39 TONS OF JADE RESTS MAJESTICALLY ON A BED OF SAND THAT'S SPRAYPAINTED WITH BLUE AND GREEN WAVES IT'S CALLED THE SHIP OF NINE DRAGONS FASHIONED AFTER THE CHINESE EMPEROR'S VESSEL USED DURING THE QIN SUI TANG AND SONG DYNASTIES THIS TRINKET COMES COURTESY OF SUDWIKATMONO THE PRESIDENT'S FOSTER BROTHER WHO HAS SAILED TO PROSPERITY IN THE CEMENT AND MOVIE INDUSTRIES NOT TO BE OUTDONE THE PRESIDENT'S CHARITABLE HALFBROTHER PROBOSUTEDJO OFFERED A JADE FOURPOSTER BED CARVED ESPECIALLY FOR THE LANGUID CHINESE PRINCESSES OF THE 19TH CENTURY THE WEDDING MARCH CONTINUES ON THE SECOND FLOOR WITH AN ARRAY OF GOLD BRIDAL ACCESSORIES AND BRILLIANTLY COLORED CLOTH SUITABLE FOR THE HAPPY OCCASION ONE BROWNANDWHITE YOGYAKARTA BATIK PATTERN MAY ONLY BE WORN BY THE KING'S FAMILY MUSEUMGOERS ARE TOLD OTHER REFERENCES TO ROYALTY ABOUND ESPECIALLY THE ROYAL HOUSES OF SOLO TO WHICH MRS SUHARTO TRACES HER ROOTS HER AUTHORIZED BIOGRAPHY LINGERS OVER THE LINEAGE OF THIS GIRL OF NOBILITY THE MUSEUM BOASTS PHOTOGRAPHS OF SULTANS PAST AS WELL AS THE 126YEAR OLD GAMELAN SET CRAFTED FOR SOLO'S LATE SULTAN PAKUBUWONO X NEVERTHELESS IT IS THE FOREIGN TREASURES DOWNSTAIRS THE STEUBEN GLASS THE WEDGWOOD PLATES THE VENETIAN PORCELAIN THAT MOST VIVIDLY CONJURE UP THE IMAGE OF THE KRATON THE ROYAL PALACE LIKE THE JEWELED RINGS AND DAGGERS OF CENTURIES PAST THESE POLISHED OBJECTS REPRESENT THE NEW ORDER'S PUSAKA PRECIOUS HEIRLOOMS LADEN WITH SUPERNATURAL POWERS IN JAVA WHOEVER OWNS THE PUSAKA RUNS THE SHOW HEREIN LIES THE KEY TO THE MUSEUM'S APPEAL TO THE CASUAL EYE PURNA BHAKTI PERTIWI MAY APPEAR A MERE MONUMENT TO EXTRAVAGANCE MUCH LIKE THE MALACANANG PALACE MUSEUM IN THE PHILIPPINES INDEED THE MARCOS LEGACY LURKS IN THE JAKARTA MUSEUM'S PHOTO GALLERY OF WORLD LEADERS THE INDISPENSABLE WEDDING ALBUM WHERE FERDINAND AND IMELDA ARE SEEN SMILING AND CHATTING WITH MR SUHARTO AND HIS WIFE BY UNMASKING IMELDA'S POSSESSIONS BEFORE HER IMPOVERISHED COUNTRYMEN CORY AQUINO HOPED TO ENGRAVE AN INDELIBLE MEMORY OF GREED WHY THEN WOULD THE SUHARTO CLAN RUSH TO PUT THEIR OWN RICHES AT LEAST SOME OF THEM ON DISPLAY EVIDENTLY THE JAVANESE CONTEXT STRIPS THESE RICHES OF POTENTIAL EMBARRASSMENT IN TURNING THE PUSAKA OVER TO THE PUBLIC MR SUHARTO PROJECTS THE IMAGE OF SHARING POWER AND AS PRESSURE BUILDS FOR POLITICAL REFORM IN INDONESIA SYMBOLIC GESTURES CAN HELP LET OFF STEAM STILL IT'S ONLY A GESTURE FOR A REMINDER OF WHO'S STILL IN CHARGE TAKE A LOOK AT THE 20 OR SO OIL PORTRAITS HANGING ON THE FIRST AND SECOND FLOORS THE STYLES VARY BUT THE EYES SHARE A SHREWD GLINT AT THIS WEDDING PARTY THE GROOM CUTS THE CAKE MS COHEN IS A JOURNALIST IN JAKARTA 9404190080 940419 BUSINESS BRIEF STATE STREET BOSTON CORP FIRSTQUARTER NET ROSE 20 ON GROWTH OF MUTUAL FUNDS STATE STREET BOSTON CORP BENEFITING FROM THE STRENGTH OF MUTUAL FUNDS REPORTED FIRSTQUARTER PROFIT ROSE 20 TO 513 MILLION OR 66 CENTS A SHARE FROM 427 MILLION OR 55 CENTS A SHARE A YEAR AGO STATE STREET IS A BANK HOLDING COMPANY BASED IN BOSTON THAT GETS ALMOST ALL OF ITS EARNINGS FROM FEES IT RECEIVES AS A CUSTODIAN INVESTMENT MANAGER AND PROVIDER OF SERVICES TO MUTUAL FUNDS PENSION FUNDS AND OTHER MONEY MANAGERS MARSHALL CARTER CHAIRMAN AND CHIEF EXECUTIVE SAID THAT REVENUE GROWTH ACCELERATED DURING THE QUARTER REFLECTING GROWTH OF INTERNATIONAL BUSINESS FEE REVENUE ROSE 28 TO 2487 MILLION THE NUMBER OF MUTUAL FUNDS SERVICED ROSE 300 TO 2209 STATE STREET STOCK ROSE 19375 TO 365625 IN NASDAQ STOCK MARKET TRADING 9404190079 940419 BUSINESS WORLD TAKING CHANCES BEFORE CONGRESS BY TIM W FERGUSON AT A HOUSE BANKING COMMITTEE HEARING LAST WEEK GEORGE SOROS PULLED BACK FROM THE BRINK OF ONE OF HIS RISKIER SPECULATIONS YOU KNOW HE TOLD REP BRUCE VENTO A MINNESOTA DEMOCRAT WHO WANTED HIM TO INVITE A RULEMAKING RESPONSE TO RECENT VOLATILITY IN FINANCIAL MARKETS AS WE WERE PREPARING FOR MY APPEARANCE HERE WE TALKED ABOUT THIS A LITTLE BIT I SAID THAT FRANKLY IT MAY BE THE ISSUING OF DERIVATIVE INSTRUMENTS OUGHT TO BE REGULATED AND THEN MY PARTNER POINTED OUT THAT UNFORTUNATELY REGULATION HAS AN UNINTENDED CONSEQUENCE BECAUSE THE REGULATORS ARE INTERESTED ONLY IN THE DOWNSIDE THEY ARE NOT INTERESTED IN THE UPSIDE IN OTHER WORDS THEY WANT TO AVOID A CATASTROPHE SO THEREFORE IF YOU IMPOSED AN OBLIGATION TO REGISTER DERIVATIVES WITH A COMMISSION LIKE STOCKS IT WOULD REALLY CREATE A BUREAUCRATIC RESISTANCE BECAUSE OF THIS ASYMMETRY BETWEEN THE INTERESTS OF THE REGULATORS AND THE INTERESTS OF THE MARKET AND SO HE DISSUADED ME FROM MAKING THAT RECOMMENDATION WHICH SUGGESTS MR SOROS IS A SHREWD PICKER OF PARTNERS AND INCLINED TO BE MORE VENTURESOME IN ADDRESSING PUBLIC POLICY AS ONE OF THE WORLD'S RICHEST FINANCIERS EVEN AFTER A REPORTED 600 MILLION PLUNGE OF HIS QUANTUM FUND IN THE SECURITIES STORM THAT PROVIDED FANFARE FOR HENRY GONZALEZ'S PANEL MR SOROS IS KNOWN FOR SAVVY IN THE MARKETS HE IS OF THE MIND THAT THEY TEND TO OVERSHOOT AND GET VALUATIONS WRONG WHILE PROFESSING TO MAKE HIS MONEY WHEN THEY DO HE WANTS THESE EXCESSES CHECKED LEST THEY THREATEN SYSTEMWIDE HAVOC THAT'S WHY MR VENTO APPLAUDED HIM FOR THE HERESY THAT YOU MAY HAVE COMMITTED HERE BY ADMITTING THAT ADAM SMITH'S INVISIBLE HAND HAS SOME FINGERPRINTS INDEED MR SOROS WAS EMBRACED FROM THE OUTSET BY COMMITTEE DEMOCRATS EVEN IF THIS WAS A HANGING PARTY FOR SOCALLED HEDGE FUNDS MR SOROS'S QUANTUM IS NO 1 IN THAT LEAGUE THOUGH HE SAYS IT'S DIFFERENT FROM THE DESTABILIZING BREED HIS MAIN PURPOSE LAST WEEK WAS TO REDIRECT ATTENTION TO THE DICIER PLAYERS AND THE BANKS THAT LEND TO THEM HE SOUNDED THE CUSTOMARY ALARM ABOUT THE DERIVATIVES FINANCIAL CONTRACTS DERIVED FROM STOCKS DEBT OR COMMODITIES THAT OTHERS USE THERE ARE SO MANY OF THEM AND SOME OF THEM ARE SO ESOTERIC THAT THE RISK INVOLVED MAY NOT BE PROPERLY UNDERSTOOD EVEN BY THE MOST SOPHISTICATED INVESTOR AND I'M SUPPOSED TO BE ONE SOME OF THOSE INSTRUMENTS APPEAR TO BE SPECIFICALLY DESIGNED TO ENABLE INSTITUTIONAL INVESTORS TO TAKE GAMBLES WHICH THEY WOULD NOT OTHERWISE BE PERMITTED TO TAKE THREE OTHER FUND CHIEFS WERE INVITED BUT DIDN'T APPEAR AMONG THIS BREED ONLY MR SOROS SEEMS TO ENJOY THE SPOTLIGHT AND IS COMFORTABLE WITH POLITICIANS THERE'S BENEFIT IN HAVING A PRACTITIONER TRY TO ENLIGHTEN LAWMAKERS THE HAZARD IS THAT THEY WILL POUNCE ON HIS PERCEPTIONS OF MARKET FAILURE TO DO MUCH LONGERLASTING DAMAGE THAN ANY THAT COMPUTERIZED TRADING MIGHT INFLICT MR SOROS'S SPECIFIC COUNSEL WAS THAT BANKING AND SECURITIES AUTHORITIES BE KEPT BETTER INFORMED OF MARKETPLACE RISK THAT SOUNDS GOOD AND THE REASONABLE TONE THAT FOUR TOP REGULATORS TOOK IN EARLIER TESTIMONY LAST WEEK ENHANCES THE IDEA BUT CHAIRMAN GONZALEZ'S LEGISLATIVE MANIFESTO ISSUED THE PREVIOUS DAY TALKS OF MAKING IMPROPER MANAGEMENT IN THIS FIELD A DIRECT VIOLATION OF THE LAW AND INDICATES A DESIRE TO ENHANCE CONGRESSIONAL OVERSIGHT OF DERIVATIVES ACTIVITIES MR SOROS NOTED THAT DERIVATIVES SPRANG UP IN PART TO GET AROUND BURDENSOME REGULATIONS QUANTUM ITSELF IS AN OFFSHORE OPERATION BUT HE WENT ON TO GIVE EAGER REGULATORS SOME FOOTING HE ANSWERED ONE QUESTION BY SAYING IF YOU LOOK AT THE INSTRUMENTS THAT CAME UNGLUED RECENTLY OR INSTRUMENTS WHERE YOU SEPARATE THE INTEREST FROM THE PRINCIPAL I AM NOT QUITE SURE THAT THEY ARE REALLY NECESSARY WILL A CONGRESSMAN HEARING THIS REALIZE THAT INTERESTONLY AND PRINCIPALONLY STRIPS ARE KEY TO DIVERSIFICATION OF EXPOSURE TO RATE MOVEMENTS GENERALLY AND THUS TO MARKETPLACE STABILITY EVEN IN THE NARROW CONTEXT MR SOROS APPARENTLY HAD IN MIND EXOTIC MORTGAGE DERIVATIVES THE AIM OF THE DESIGNING WHIZZES HAS BEEN TO SHIFT THE RISKS INHERENT IN SUCH LENDING SO THAT THEY WILL NOT HAVE TO BE BORNE BY SECURITIES FIRMS WHICH TOOK THE HIT IN THE 1987 RATE RISE OR THE ORIGINATING INSTITUTIONS REMEMBER THE THRIFT CRISIS OBVIOUSLY THE BUST THIS MONTH OF 600 MILLION ASKIN CAPITAL MANAGEMENT AND PROBABLY SMALLER FUNDS SHOWS THAT POCKETS OF VULNERABILITY REMAIN BUT THAT DOESN'T BEHOOVE AN INVESTMENT LUMINARY TO CAST ASPERSIONS BEFORE CONGRESS ON A TECHNIQUE FOR WHICH HE HAS NO USE THE MAIN TARGET OF SOROS CRITICISM WAS LEVERAGED OR DYNAMIC HEDGING THIS IS WHAT LOST PROCTER & GAMBLE 157 MILLION IN ITS THIRD QUARTER BUT IS THE SORT OF THING A COMPANY WITH A SIGNIFICANT FINANCIALASSET PORTFOLIO MAY DESIRE EVEN IF THE TREASURER ISN'T SEEKING TO BE A PROFIT CENTER USUALLY HOWEVER THESE ARE THE DOMAIN OF DERIVATIVE ISSUERS BANKS SECURITIES FIRMS AND INSURANCE COMPANIES AND THAT WAS ON MR SOROS'S MIND WHEN HE SAID DYNAMIC HEDGING MEANS IN EFFECT THAT IF THE MARKET MOVES AGAINST THE ISSUER THE ISSUER IS FORCED TO MOVE IN THE SAME DIRECTION AS THE MARKET AND THEREBY AMPLIFY THE INITIAL PRICE DISTURBANCE THIS RAISES THE SPECTER OF FINANCIAL DISLOCATION AND OF CONGRESSIONAL ACTION THE PROSPECT OF PRICES SPIRALING DOWNWARD WAS A MORE LEGITIMATE WORRY IN THE PRIMITIVE DAYS OF PORTFOLIO INSURANCE AND THE 1987 STOCKMARKET CRASH WHEN SOME COGS OF THE BANKING SYSTEM INDEED APPEARED TO BE JEOPARDIZED BUT THE SCIENCE OF DYNAMIC FINANCE HAS ADVANCED SINCE THEN TO CONCERN ITSELF WITH THE SPEED AS WELL AS THE SIZE OF POTENTIAL LOSSES AND TO SUBJECT HEDGES TO STRESS TESTS ACROSS A WIDE UNIVERSE OF SCENARIOS THE ABSENCE OF A CRISIS AMONG MAJOR INSTITUTIONS IN THE 1990S IS EVIDENCE OF PROGRESS WHAT ARE DERIVATIVES ANYWAY BUT A MODEL OF THE BEHAVIOR OF THE UNDERLYING ASSETS WITH LESS FRICTION AND LOWER TRANSACTION COSTS AS GEORGE SOROS KNOWS THE REAL ECONOMY IS REPLETE WITH VOLATILITY AT QUANTUM HE PREFERS TO SEIZE ON THOSE SHIFTS WITHOUT USING MULTIPLIER MECHANISMS BUT OTHERS THINK THEY'VE GOT BETTER IDEAS BARRING SYSTEMIC DANGER THE MARKET CAN SORT THIS OUT EVEN IF THAT MEANS A FEW MORE SPECTACULAR FAILURES MOST WOULD AGREE THAT THIS PROCESS SHOULD STOP SHORT OF THE BANKING SYSTEM BUT AN ACTIVE CONGRESSIONAL PANEL IS LIKELY TO DEVELOP SUCH PROTECTION BROADLY AT THE COST OF FINANCIAL INNOVATION MR SOROS WILL GO HIS OWN WAY BUT THERE'S MARKET RISK HERE IN STIRRING THE POLITICAL BARNYARD IN DISCUSSING DERIVATIVES AS WELL AS DEALING THEM IT PAYS TO BE CAUTIOUS ABOUT WHAT YOU'RE PROPOSING AND TO WHOM 9404190078 940419 ASTONISHING VIEWS AND MANY OPINIONS MUST BE THE PRESIDIO PLAN FOR SAN FRANCISCO PARK BRINGS NUDISTS GOLFERS AND SKUNKS INTO THE OPEN BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO EARLY ON IN THE STRUGGLE TO CONVERT THE OLD PRESIDIO ARMY BASE HERE INTO A NATIONAL PARK A LOCAL CARNIVAL FAMILY KNOWN AS THE PICKLES SUGGESTED TURNING PART OF THE SITE INTO A THREERING CIRCUS THE PICKLES LATER SOURED ON THE IDEA SOME SUGGEST THEIR GOAL HAS BEEN ACHIEVED NONETHELESS FOR NEARLY THREE YEARS THE US ARMY THE NATIONAL PARK SERVICE AND HUNDREDS OF BAY AREA ACTIVISTS HAVE BEEN JUMPING THROUGH HOOPS AND OTHERS BREATHING FIRE OVER THE FATE OF THE PRESIDIO THE 18THCENTURY FORTRESS SITS ON 1500 FORESTED ACRES OVERLOOKING THE GOLDEN GATE BRIDGE IT MAY BE THE CHOICEST UNDEVELOPED URBAN REAL ESTATE UP FOR GRABS IN THE COUNTRY THE ARMY ORIGINALLY PLANNED TO TURN IT OVER TO THE PARK SERVICE WHICH ENVISIONED A KIND OF MULTICULTURAL ECOPARK FOR LOCALS TOURISTS AND SCIENTISTS PRIVATE INTERESTS WOULD PICK UP MOST OF THE ESTIMATED 600 MILLION IN BUILDINGREPAIR AND CLEANUP COSTS THE PLAN WAS HAILED AS A MODEL FOR PROGRESSIVE MILITARYBASE CONVERSION NOW JUST A FEW MONTHS BEFORE THE ARMY IS SUPPOSED TO RETREAT FROM THE PRESIDIO THE PLAN IS PINNED DOWN IN A STRANGE CROSSFIRE THE MILITARY ITSELF IS HAVING SECOND THOUGHTS ABOUT GIVING UP CERTAIN STRATEGIC ASSETS NAMELY A GOLF COURSE HORDES OF SPECIAL INTERESTS ARE PILLORYING THE PLAN AND EACH OTHER TURNING THE PROCESS INTO SOMETHING OF A NEW AGE YUGOSLAVIA THE MUWEKMA OHLONE INDIANS OF WHOM THERE REMAIN ROUGHLY 158 HAVE THREATENED TO PRESS ANCESTRAL CLAIMS TO THE BASE INVESTIGATORS OF EXTRATERRESTRIALS WANT SPACE FOR RESEARCH INTO EARTH'S EMERGING INTERACTIVE RELATIONSHIP WITH THE REST OF THE UNIVERSE NUDISTS HAVE DEMANDED MORE ACCESS TO BEACHES A BRAVE STANCE SINCE THOSE BEACHES ARE SWEPT YEARROUND BY BONENUMBING CURRENTS AND TEETHRATTLING FOGS THE PARK SERVICE EXPECTED ITS PRESIDIO PLAN WOULD GENERATE RESPONSES AND IT DID 2353 IN ALL MOSTLY FROM MAINSTREAM ENVIRONMENTAL AND RESEARCH GROUPS STILL PLANNERS WEREN'T PREPARED FOR THE FLAK THEY HAVE TAKEN FROM CERTAIN ADVERSARIES THE BUNGEEJUMP ADVOCATES FOR EXAMPLE ARE PRESSING TO HAVE THE PARK SERVICE APPROVE COMMERCIAL JUMPING OFF THE GOLDEN GATE BRIDGE MAN IT WOULD BE THE PREMIER BUNGEE JUMP IN THE WORLD SAYS PETER KOCKELMAN OWNER OF BUNGEE ADVENTURES HE ALSO THINKS THE PRESIDIO WOULD PROVIDE SPLENDID VIEWS FOR CUSTOMERS TRYING HIS NEW INVENTION THE EJECTOR SEAT A GIANT SLINGSHOT THAT HURLS THE EJECTEE TETHERED TO A BUNGEE CHORD SOME 140 FEET INTO THE AIR MEANWHILE BAY AREA ANIMALRIGHTS GROUPS ARE GOING WILD BECAUSE THE PARK SERVICE WANTS TO LEASE THE PRESIDIO'S RESEARCH HOSPITAL AND LABORATORIES TO UNIVERSITY RESEARCHERS WHO SEEM LIKELY TO CONTINUE THE MILITARY'S LONG TRADITION OF ANIMAL EXPERIMENTS THE PARK SERVICE VIEWS THESE LEASES AS CASH COWS BUT IT'S UNIMAGINABLE THAT TORTURING ANIMALS COULD TAKE PLACE IN A NATIONAL PARK SAYS DR ELLIOT KATZ OF IN DEFENSE OF ANIMALS THEN THERE ARE THE WINDSURFERS THEY ARE STIRRED UP BECAUSE THE PARK SERVICE AMONG OTHER THINGS WANTS WINDSURFERS' CARS CONFINED TO PRESIDIO PARKING SPACES DELINEATED WITH THE USUAL WHITE MARKINGS BOUNDARIES ARE JUST NOT PART OF THE WINDSURFING EXPERIENCE EXPLAINS KELLY WEE A WINDSURFING ACTIVIST THE WINDSURFERS SAY THEY WILL SUE IF CROWDED AND IT ISN'T MERE BLUSTER A LOT OF WINDSURFERS ARE LAWYERS SAYS WILLIAM ROBBERSON HEAD OF THE 2000STRONG SF BOARDSAILING ASSOCIATION ATOP ALL THIS POLITICAL ACTIVISTS ARE PLANNING TO PARADE INTO THE PRESIDIO TO PROTEST THE PARK SERVICE'S REJECTION OF A PLAN TO TURN OLD BARRACKS INTO A HOME FOR THE HOMELESS THE PLAN IS CALLED OIDISERP ODYSSEY OIDISERP BEING PRESIDIO SPELLED BACKWARD WITH ALL THIS CONFLICT THE PRESIDIO COULD USE A PEACEMAKER AND IN FACT IT HAS ONE ON PREMISES THE MIKHAIL GORBACHEV FOUNDATION WHICH MOVED INTO AN OLD COAST GUARD BEACH HOUSE LAST YEAR PLEDGING THE GLOBAL PURSUIT OF DIALOGUE AND PEACE INDEED MEDIATING THE PRESIDIO FRAY MIGHT PROVE A USEFUL PRIMER FOR RESOLVING BIGLEAGUE CONFLICTS OBSERVES SPOKESMAN JOHN BALBACH IT IS QUESTIONABLE HOWEVER WHETHER EVEN FOUNDATION DIPLOMACY CAN RESOLVE THE ARMY'S ABOUTFACE GOLF IS INVOLVED THE PRESIDIO FEATURES A DAZZLING CHAMPIONSHIP COURSE THAT HAS FOR A CENTURY BEEN THE PRESERVE OF ARMY GOLFERS AND AN EXCLUSIVE GROUP OF PRIVATE CLUB MEMBERS THE MOST FAMOUS OF WHOM IS BASEBALL LEGEND JOE DIMAGGIO THE PARK SERVICE PLANS TO OPEN THE COURSE TO EVERYBODY INDEED GREEN FEES FROM THE MASSES WOULD PROVIDE A CRUCIAL SOURCE OF OPERATING FUNDS FOR THE PARK THE MILITARY WENT ALONG UNTIL IT DECIDED TO KEEP ABOUT 460 OF THE SIXTH US ARMY'S HEADQUARTERS STAFF ON THE BASE NOW GLYNN C MALLORY A THREESTAR GENERAL AND 23HANDICAPPER SAYS THE COURSE IS VITAL TO PERFORMING OUR MISSION AND MAINTAINING THE TROOPS' QUALITY OF LIFE THE PRIVATE PRESIDIO GOLFERS HAVE COME OUT SWINGING TOO DAVID HANSELL PRESIDENT OF THE 305MEMBER PRESIDIO GOLF CLUB SAYS HIS GROUP HAS PUT TOGETHER A LITIGATION WAR CHEST AND HAS HIRED A FORMER PARK SERVICE OFFICIAL AS A LOBBYIST OUR MAN WILL TAKE THIS TO THE HIGHEST LEVELS MR HANSELL SAYS INCLUDING HE HINTS THE NATION'S DUFFERINCHIEF BILL CLINTON THE PARK SERVICE MR HANSELL CHARGES JUST DOESN'T UNDERSTAND THE GOLFER MENTALITY BRIAN O'NEILL A TOP PARK SERVICE PLANNER IS UNMOVED THE GOLF COURSE IS AN INTEGRAL PART OF THE FABRIC OF PRESIDIO HISTORY AND IT BELONGS IN THE PARK WITH ACCESS TO ALL HE SAYS THE GOLF FACTIONS HAVE BEEN MEETING AT THE PENTAGON IN RECENT DAYS TO TRY TO RESOLVE DIFFERENCES MEANWHILE THERE IS A NEW WHIFF OF TROUBLE IN THE PRESIDIO SKUNKS IT SEEMS HAVE LONG INHABITED THE BASE'S GROVES OF EUCALYPTUS AND PINE THE ARMY HAS KEPT THEM IN CHECK WITH SOMETIMESLETHAL RAIDS BUT RECENTLY THE GOVERNMENT HAS TAKEN TO LEVELING SKUNK HABITAT THE PANICKED SKUNKS HAVE FLED THE PRESIDIO FOR POSH BORDER NEIGHBORHOODS WHERE US SEN DIANNE FEINSTEIN MR DIMAGGIO AND OTHER PROMINENT SAN FRANCISCANS LIVE ONE SUCH IS WILLIAM KOBLENTZ A HIGHPOWERED LOCAL ATTORNEY HE AND HIS TERRIER FREDDY WERE OUT FOR A STROLL RECENTLY WHEN THEY WERE SET UPON BY A PRESIDIO SKUNK IT WAS A MONTH BEFORE FREDDY STOPPED STINKING MR KOBLENTZ SAYS ANOTHER SKUNK WAS RECENTLY SPOTTED WITH A YOGURT CUP STUCK ON ITS HEAD IN FRONT OF A TRENDY PRESIDIOAREA NIGHTSPOT A LOT OF PRESIDIO NEIGHBORS THINK THE CITY SHOULD JUST WIPE OUT THE SKUNKS IMPOSSIBLE SAYS MICHAEL KNAPP THE CITY'S TOP ANIMALCONTROL MAN EVEN IF WE HUMANELY EUTHANIZED SKUNKS THE ANIMALRIGHTS PEOPLE WOULD BE ALL OVER US HE SAYS BESIDES WE'RE BASICALLY PROSKUNK THEY WERE HERE FIRST MANY SAN FRANCISCANS THINK THE REAL SKUNKS ARE BACK IN CONGRESS JOHN J DUNCAN A TENNESSEE REPUBLICAN HAS LABELED THE PRESIDIO PLAN AN ABSURD BOONDOGGLE AND IS GETTING SOME SUPPORT FOR LEGISLATION HE SAYS WOULD RAISE TENS OF MILLIONS OF DOLLARS FOR THE GOVERNMENT BY SELLING PRIME PRESIDIO ASSETS TO PRIVATE DEVELOPERS VOTES ON HIS PROPOSAL AND ON A PROPARKPLAN BILL SPONSORED BY HOMETOWN REP NANCY PELOSI ARE LIKELY TO DETERMINE THE PRESIDIO'S FATE BOTH ARE EXPECTED THIS SUMMER SOME THINK REP DUNCAN IS ENGAGING IN SKUNKLIKE TACTICS HE'S MAKING US OUT TO BE A BUNCH OF FAROUT BIZARROS SAYS TRACY FORTMANN A PARK SERVICE EMPLOYEE AND BAY AREA RESIDENT IT'S A CHEAP SHOT 9404190077 940419 BUSINESS BRIEF NEXTEL COMMUNICATIONS INC US REQUESTS INFORMATION ABOUT FLEET DISPATCHER PACTS NEXTEL COMMUNICATIONS INC SAID THE JUSTICE DEPARTMENT HAS REQUESTED ADDITIONAL INFORMATION CONCERNING SEVERAL AGREEMENTS ANNOUNCED LAST YEAR SUCH REQUESTS CAN RELATE TO THE INVESTIGATION OF POSSIBLE ANTITRUST VIOLATIONS BUT A SPOKESMAN FOR NEXTEL A RUTHERFORD NJ OPERATOR OF FLEET DISPATCH SERVICES DESCRIBED THE REQUEST AS ROUTINE AND MORE LIKELY RELATED TO THE JUSTICE DEPARTMENT'S ATTEMPT TO EDUCATE ITSELF ABOUT THE WIRELESS COMMUNICATIONS SERVICES THE DEALS INCLUDE NEXTEL'S ACQUISITION AGREEMENTS WITH QUESTAR TELECOM INC A UNIT OF SALT LAKE CITYBASED QUESTAR CORP ADVANCED MOBILECOMM INC A UNIT OF BOSTONBASED FIDELITY INVESTMENTS AND POWERFONE HOLDINGS INC OF RESTON VA AS WELL AS A DEAL TO ISSUE 355 MILLION SHARES IN EXCHANGE FOR FLEET COMMUNICATIONS PROPERTIES HELD BY MOTOROLA INC 9404190076 940419 BUSINESS BRIEF RAX RESTAURANTS INC FIRM TO BECOME FRANCHISEE OF IMASCO'S HARDEE'S UNIT RAX RESTAURANTS INC WHICH EMERGED FROM BANKRUPTCY PROCEEDINGS FIVE MONTHS AGO SAID IT IS SHIFTING ITS STRATEGY TO BECOME THE THIRDBIGGEST HARDEE'S RESTAURANT FRANCHISEE RAX SAID IT HAS AGREED TO CONVERT 52 OF ITS 79 COMPANYOWNED RESTAURANTS TO HARDEE'S AND BUY ANOTHER 164 FASTFOOD OUTLETS FROM HARDEE'S AND ONE OF ITS FRANCHISEES FOR A TOTAL OF 216 RAX WILL OWN ABOUT 5 OF TOTAL HARDEE'S RESTAURANTS SAID WILLIAM R UNDERHILL RAX'S PRESIDENT AND CHIEF EXECUTIVE OFFICER ADDITIONALLY RAX WHICH IS BASED IN DUBLIN OHIO SAID IT WILL DEVELOP MORE THAN 100 OTHER HARDEE'S RESTAURANTS IN OHIO OVER THE NEXT SIX YEARS HARDEE'S FOOD SYSTEMS INC WHICH HAD 1993 SALES OF ABOUT 5 BILLION IS BASED IN ROCKY MOUNT NC IT IS A UNIT OF IMASCO LTD OF MONTREAL CANADA THE AGREEMENT WITH HARDEE'S WILL LEAVE 27 COMPANYOWNED AND 93 FRANCHISED RAX ESTABLISHMENTS IN 15 STATES PRIMARILY OHIO INDIANA AND WEST VIRGINIA 9404190075 940419 MARKETING & MEDIA TIMES MIRROR CO INVESTS IN MAKER OF VIDEO GAMES BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES TIMES MIRROR CO IN AN IMPORTANT STEP FOR ITS WIDENING INTERESTS IN INTERACTIVE MEDIA INVESTED IN CLOSELY HELD VIDEOGAME MAKER DIGITAL PICTURES INC OFFICIALS AT BOTH COMPANIES SAID THE RELATIONSHIP A DIRECT PURCHASE OF EQUITY AS WELL AS JOINT VENTURES IS EXPECTED TO PROVIDE TIMES MIRROR WITH ACCESS TO TECHNOLOGY THAT GREATLY COMPRESSES PICTURES AND SOUND EASING RECORDING AND TRANSMISSION OF THE HUGE AMOUNTS OF COMPUTER DATA REQUIRED FOR ELABORATE INTERACTIVE PROGRAMMING THE JOINT VENTURES FINANCED SEPARATELY FROM THE EQUITY PURCHASE ALSO WILL BRING DIGITAL PICTURES' EXPERIENCE WITH FULL MOTION PRODUCTION IN INTERACTIVE PROGRAMS TO SEVERAL PRODUCT AREAS FOR TIMES MIRROR INCLUDING INTERACTIVE MAGAZINES ADVERTISING AND CABLETELEVISION CONTENT OFFICALS AT THE COMPANIES DISCUSSED THE JOINT VENTURE AGREEMENTS IN BROAD TERMS BUT DECLINED TO DISCLOSE THE AMOUNT OF TIMES MIRROR'S INVESTMENT IN DIGITAL PICTURES OR THE MINORITY STAKE ACQUIRED BY TIMES MIRROR IN ITS SMALL PARTNER WHICH IS BASED IN SAN MATEO CALIF A FORMAL ANNOUNCEMENT OF THE AGREEMENTS IS EXPECTED AS EARLY AS TODAY WE THINK THAT DIGITAL PICTURES HAS BOTH GOOD TECHNOLOGIES AND CREATIVE IMAGINATION SAID CURTIS A HESSLER TIMES MIRROR EXECUTIVE VICE PRESIDENT IN AN INTERVIEW MR HESSLER SAID TIMES MIRROR'S WORK WON'T BE DIRECTED AT DIGITAL PICTURES' VIDEOGAMES BUSINESS TIMES MIRROR WITH INTERESTS IN NEWSPAPER MAGAZINE AND BOOK PUBLISHING AS WELL AS CABLETV SYSTEMS IS LIKE OTHER MAJOR PUBLISHING CONCERNS EXPERIMENTING WITH POTENTIAL SOCALLED INTERACTIVE PRODUCTS AND TECHNOLOGIES INTERACTIVE TECHNOLOGIES LET USERS CONTROL MANY OF THE DETAILS OF WHAT THEY SEE OR READ ON A COMPUTER OR TV SCREEN TIMES MIRROR HAS MADE SMALL ACQUISITIONS THAT GIVE IT PRODUCTION SKILLS IN CERTAIN AREAS CHIEFLY PROFESSIONAL TRAINING AND INFORMATION PROGRAMS THE PUBLISHING CONCERN'S VENTURES WITH DIGITAL PICTURES ON THE OTHER HAND APPEAR AIMED AT THE DESIGN OF CONSUMER PRODUCTS I SEE OUR ROLE AS COMING UP WITH THINGS THAT ARE ATTRACTIVE TO CONSUMERS AND THAT WILL MAKE MONEY SAID TOM ZITO PRESIDENT AND CHIEF EXECUTIVE OFFICER OF DIGITAL PICTURES ONCE PRODUCT FORMATS ARE CREATED MR ZITO SAID PRODUCTION IS LIKELY TO BE DONE BY TIMES MIRROR STAFF IT'S BELIEVED THAT THE JOINT VENTURES WILL INCLUDE WORK ON INTERACTIVE MAGAZINES THAT COULD BE DISTRIBUTED INITIALLY ON CDROMS SILVERY COMPUTER DISKS LIKE THOSE USED FOR DIGITAL MUSIC RECORDINGS AND LATER BY INTERACTIVE CABLETV THESE MAGAZINELIKE PRODUCTS ARE EXPECTED TO BE NARROWLY FOCUSED FOR CERTAIN INTEREST GROUPS AND ARE LIKELY TO HAVE MORE MOTION PICTURES WITHIN THEM THAN MANY CURRENT EXPERIMENTS WITH INTERACTIVE MAGAZINES DIGITAL PICTURES AND TIMES MIRROR EXPECT TO PRODUCE AND TEST A NUMBER OF MAGAZINELIKE INTERACTIVE PRODUCTS BY THE END OF THE YEAR INTERACTIVE ADVERTISING WORK ALSO WILL BE UNDERTAKEN AS A JOINT VENTURE 9404190074 940419 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY APRIL 6 1994 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9404190073 940419 WHO'S NEWS FORD IS EXPECTED TO NAME PRESIDENT OF GLOBAL AUTO OPERATIONS THIS WEEK BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DEARBORN MICH FORD MOTOR CO IS EXPECTED TO NAME A PRESIDENT OF ITS WORLDWIDE AUTOMOTIVE OPERATIONS LATER THIS WEEK AS PART OF A BROADER GLOBAL RESTRUCTURING FORD OFFICIALS SAID THEY EXPECT THE JOB TO GO TO EITHER W WAYNE BOOKER 59 YEARS OLD EXECUTIVE VICE PRESIDENT IN CHARGE OF FORD'S INTERNATIONAL AUTOMOTIVE OPERATIONS OR EDWARD E HAGENLOCKER 55 EXECUTIVE VICE PRESIDENT IN CHARGE OF NORTH AMERICAN AUTOMOTIVE OPERATIONS NEITHER OF THEM WERE AVAILABLE FOR COMMENT ALEXANDER J TROTMAN WHO WAS NAMED CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF FORD IN NOVEMBER WAS THE MOST RECENT HOLDER OF SUCH A POSITION THE PRESIDENT OF WORLDWIDE AUTO OPERATIONS AT FORD WOULD BE RESPONSIBLE FOR ACTIVITIES THAT LAST YEAR GENERATED 9157 BILLION IN REVENUE AND RECORDED PROFIT OF 940 MILLION FORD'S FINANCIALSERVICES GROUP ACCOUNTED FOR 1695 BILLION IN REVENUE AND 159 BILLION IN EARNINGS WHOMEVER MR TROTMAN HAS CHOSEN WILL BE CHARGED WITH IMPLEMENTING MR TROTMAN'S PLANS FOR MAKING FORD A MORE GLOBAL CAR COMPANY MR TROTMAN IS EXPECTED TO OUTLINE A SWEEPING REORGANIZATION OF AUTO OPERATIONS AT A MEETING WITH FORD'S TOP 400 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 AND SALES FORD OFFICIALLY DECLINED TO DISCUSS DETAILS OF THE REORGANIZATION BUT INDUSTRY OFFICIALS SAID THE NEXT PRESIDENT OF FORD'S GLOBAL AUTO OPERATIONS CLEARLY WILL NEED INTERNATIONAL EXPERIENCE AND BOTH MR BOOKER AND MR HAGENLOCKER HAVE THAT BOTH MEN ARE QUIET THOUGHTFUL TOUGHMINDED CAREER FORD EXECUTIVES MR BOOKER WHO IS ALSO CHAIRMAN OF AUTOALLIANCE INTERNATIONAL INC THE FORDMAZDA MANUFACTURING JOINT VENTURE IN THE US HAS A BACKGROUND IN FINANCE AND HAS HELD VARIOUS POSTS AT FORD IN MEXICO BRAZIL LATIN AMERICA JAPAN AND NORTH AMERICA HIS CURRENT RESPONSIBILITIES INCLUDE ALL OF FORD'S AUTO OPERATIONS OUTSIDE NORTH AMERICA MR HAGENLOCKER WHO HOLDS A DOCTORATE IN PHYSICS AND TWO MASTER'S DEGREES HAS AN EXTENSIVE BACKGROUND IN ENGINEERING AND PRODUCT DEVELOPMENT HE WAS IN CHARGE OF FORD'S BRAZILIAN OPERATIONS IN THE MID'80S AND BEFORE TAKING CHARGE OF NORTH AMERICAN OPERATIONS SPENT SIX YEARS RUNNING THE COMPANY'S HIGHLY PROFITABLE TRUCK DIVISION THE REORGANIZATION THAT MR TROTMAN IS DUE TO OUTLINE THIS WEEK WOULD BE A RADICAL DEPARTURE FROM THE STRUCTURE THAT HAS BEEN IN PLACE FORD NORTH AMERICA FORD OF EUROPE AND FORD/ASIA PACIFIC NOW OPERATE AS QUASIINDEPENDENT CAR COMPANIES UNDER THE NEW ORGANIZATION SELECT EXECUTIVES WILL HAVE AUTHORITY TO ACT GLOBALLY THE NEW ORGANIZATION WOULD ALLOW FORD TO AVOID COSTLY DUPLICATION OF EFFORTS IN DIFFERENT PARTS OF THE WORLD THAT WOULD MEAN GREATER EFFICIENCY IN DEVELOPING VEHICLES WHICH WITH MINOR MODIFICATIONS COULD SELL IN SEVERAL PARTS OF THE WORLD AND CERTAIN COMPONENTS FOR EXAMPLE THAT ARE NOW DESIGNED TO FIT VEHICLES BUILT IN SAY EUROPE WOULD BE CONSTRUCTED TO FIT VEHICLES BUILT IN THE US AS WELL 9404190072 940419 TRANSPORTATION TWO TRUCKERS SEE SAME STRIKE VERY DIFFERENTLY BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL YORK PA AS STRIKING TEAMSTERS BLOCK THE GATES OF THE SPRAWLING TRUCK TERMINAL NEAR THIS INDUSTRIAL CITY HUNDREDS OF BIG RIGS SIT IN ROWS QUIET AND MOTIONLESS MEANWHILE ABOUT 20 MILES EAST AT A SMALL TRUCK TERMINAL IN MANHEIM PA DRIVERS ON FORKLIFTS RUSH IN AND OUT OF TRAILERS HANDLING A SURGE OF FREIGHT BOTH TERMINALS ARE OWNED BY TRUCKING SUBSIDIARIES OF CONSOLIDATED FREIGHTWAYS INC OF PALO ALTO CALIF BUT ONE IS UNIONIZED THE OTHER ISN'T AS 70000 TEAMSTERS ACROSS THE COUNTRY CONTINUE THEIR TWOWEEKOLD STRIKE THESE TWO TRUCK TERMINALS WHERE FREIGHT FROM MANY DIFFERENT SHIPPERS IS UNLOADED SORTED AND RELOADED REVEAL THE DEEP FISSURES IN THE TRUCKING INDUSTRY IN RECENT YEARS LONGHAUL UNIONIZED CARRIERS LIKE THE ONE IN YORK HAVE STAGNATED AS BROAD DISTRIBUTION PATTERNS HAVE CHANGED WITH MORE SHIPPERS INSISTING ON DELIVERING THEIR FREIGHT AS CLOSE TO MANUFACTURE OR SALE AS POSSIBLE LARGE LESSTHANTRUCKLOAD COMPANIES HAVE SET UP OR BOUGHT REGIONAL SUBSIDIARIES AND LIKE THE TERMINAL AT MANHEIM MOST OF THESE REGIONAL OPERATIONS ARE NONUNION YESTERDAY NEGOTIATORS FROM THE TRUCKERS' NEGOTIATING ARM TRUCKING MANAGEMENT INC MET FOR THE FIRST TIME IN TWO WEEKS WITH TEAMSTER LEADERS WHILE NO SETTLEMENT WAS REACHED THE SIDES AGREED TO MEET AGAIN TODAY AT THE YORK TERMINAL THE TEAMSTER EMPLOYEES WHO WORK FOR CF MOTORFREIGHT ARE RESISTING EFFORTS BY THE MAJOR TRUCKING COMPANIES TO CUT COSTS BY HIRING MORE PARTTIME WORKERS AT LOWER WAGES AND TO TURN OVER MORE OF THEIR LONGHAUL FREIGHT TO THE RAILROADS IN MANHEIM NONUNION WORKERS AT CONWAY TRANSPORTATION SERVICES ALREADY EXERCISE A GREAT DEAL OF FLEXIBILITY ROAD DRIVERS BACK THEIR TRAILERS TO THE LOADING DOCKS JUMP OUT AND UNLOAD FREIGHT WORK THAT OFTEN REQUIRES THREE DIFFERENT WORKERS IN A TERMINAL MANNED BY TEAMSTERS THE NONUNION REGIONAL CARRIERS HAVE LED THE WAY IN LOWERING COSTS FOR SHIPPERS SAYS BILL HUIE TRANSPORTATION DIRECTOR OF NCH CORP AN IRVING TEXAS MAKER OF INDUSTRIAL CHEMICALS THAT IS FORCING THE UNION CARRIERS TO FIND WAYS TO STAY COMPETITIVE SINCE TRUCKING WAS DEREGULATED IN 1980 SEVERAL DOZEN STRONG NONUNION REGIONAL CARRIERS HAVE EMERGED ONE OF THE LARGEST AMERICAN FREIGHTWAYS CORP A HARRISON ARKBASED COMPANY NOW COVERS 14 STATES IT COSTS US JUST THE SAME TO BUY A TRACTOR AS IT DOES FOR A UNIONIZED CARRIER SAYS SHERIDAN GARRISON THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE THE ADVANTAGE WE HAVE IS THAT WE HAVE A MORE FLEXIBLE WORK FORCE THE REGIONAL CARRIERS ALSO HAVE ESCHEWED THE EXPENSIVE HUBANDSPOKE NETWORKS OF THE LARGE NATIONAL CARRIERS EVERYTIME YOU MOVE FREIGHT INTO ONE OF THOSE BIG TERMINALS YOU ADD A DAY SAYS ROBERT TAYLOR CONTROLLER OF PITTOHIO EXPRESS INC A CLOSELY HELD PITTSBURGH FIRM THAT SPECIALIZES IN OVERNIGHT FREIGHT SERVICE THE BIG LONGHAUL UNIONIZED CARRIERS ARE WHERE THE RAILROADS WERE IN THE 1950S SAYS BERNARD LALONDE PROFESSOR OF TRANSPORTATION AND LOGISTICS AT OHIO STATE UNIVERSITY IN COLUMBUS THEY HAVE OUTDATED WORK RULES AND A LARGE EMBEDDED INFRASTRUCTURE CONSOLIDATED FREIGHTWAYS BEGAN ITS CONWAY TRANSPORTATION SERVICES UNIT IN 1983 AND HAS SINCE EXPANDED IT TO FOUR SEPARATELY OPERATED REGIONAL CARRIERS ROADWAY SERVICES INC AKRON OHIO HAS ACQUIRED FOUR NONUNION REGIONAL CARRIERS THAT TOGETHER SERVE MOST OF THE COUNTRY THE LATEST ENTRY YELLOW CORP OVERLAND PARK KAN LAST YEAR BOUGHT PRESTON CORP WHICH OWNS ONE UNIONIZED AND TWO NONUNION REGIONAL FIRMS SO FAR CONWAY TRANSPORTATION HAS BECOME THE LARGEST MOST PROFITABLE AND MOST VISIBLE OF THE NONUNION TRUCKING SUBSIDIARIES LAST YEAR CONWAY HAD RECORD OPERATING INCOME OF 719 MILLION ON REVENUE OF 8183 MILLION ON THE OTHER HAND UNIONIZED CF MOTORFREIGHT REPORTED OPERATING INCOME OF 317 MILLION ON A REVENUE DECLINE OF 33 TO 21 BILLION CRITICS SAY SUCH CARRIERS HAVE BEEN SET UP NOT SO MUCH TO IMPROVE DISTRIBUTION AS TO GET AROUND UNION WORK RULES THEY HAVE TAKEN FREIGHT WE COULD BE HANDLING AND JOBS WE COULD HAVE SAYS KEVIN CICAK BUSINESS AGENT FOR TEAMSTERS LOCAL 430 WHO IS MANNING THE PICKET LINE IN FRONT OF THE CF MOTORFREIGHT TERMINAL NEAR YORK EVERY DOLLAR THEY PUT INTO CONWAY TO BUY TRACTORS AND TRAILERS IS MONEY THEY COULD PUT INTO CF MOTORFREIGHT TO MAKE US MORE COMPETITIVE OTHERS SAY THE NONUNION SUBSIDIARIES ARE PART OF A STRATEGY TO TAKE ON THE TEAMSTERS THEY CAN GAIN BUSINESS AT THE CONWAYS AND WITHSTAND A LONGER STRIKE SAYS PAUL BOLDIN ASSOCIATE RESEARCH DIRECTOR OF THE TEAMSTERS IN WASHINGTON ADVOCATES OF THE NONUNION SUBSIDIARIES SAY THAT IS NOT THE CASE THE CONWAYS ARE PICKING UP SOME BUSINESS BUT IT WON'T OFFSET THE LOSSES FROM THE STRIKE SAYS A CONSOLIDATED FREIGHTWAYS SPOKESMAN ROBERT T ROBERTSON PRESIDENT CHIEF EXECUTIVE AND FOUNDER OF CONWAY TRANSPORTATION SAYS CONWAY ISN'T DIRECTLY COMPETING WITH CF MOTORFREIGHT WE'RE A REGIONAL NETWORK NOT A LONGHAUL COASTTOCOAST CARRIER HE SAYS WHAT'S MORE MR ROBERTSON SAYS THAT CONWAY PAYS ITS EMPLOYEES SALARIES AND BENEFITS THAT COMPARE FAVORABLY WITH THOSE AT TEAMSTERS FIRMS BUT DOESN'T HAVE THE COSTLY WORK RULES WE AREN'T A GOOD COMPANY BECAUSE WE ARE UNION FREE HE SAYS WE'RE UNION FREE BECAUSE WE ARE A GOOD COMPANY MEANWHILE NONUNION EMPLOYEES AT CONWAY'S MANHEIM TERMINAL STRUGGLE TO KEEP UP WITH FREIGHT VOLUMES WHICH HAVE DOUBLED SINCE THE STRIKE BEGAN MANAGER GREG SCHIMKE SAYS THE TERMINAL IS EXTENDING ITS HOURS ADDING MORE TRUCK RUNS AND INCREASING USE OF RAIL TRANSPORTATION TO KEEP UP WITH DEMAND CAREY MAXWELL AN ACCOUNT MANAGER SAYS SHE RECENTLY PICKED UP A SHIPMENT A 50POUND CAR PART IN HER FORD TAURUS THAT WOULD BE FROWNED ON IN A UNION SHOP LIKE OTHERS AT THE TERMINAL DRIVER SCOTT OLP IS PUTTING IN 14HOUR AND 15HOUR DAYS AFTER LOADING A TRAILER WITH AUTO PARTS PLUMBING PIPES AND NEWSPAPER INSERTS MR OLP BACKS A TRUCK TRACTOR TO HIS RIG AND THEN HOOKS UP THE AIR HOSES WHEN HE WORKED FOR UNIONIZED ST JOHNSBURY TRUCKING CO WHICH CEASED ITS TRUCKING OPERATIONS LAST SUMMER MR OLP READ MAGAZINES OR TALKED TO OTHER DRIVERS WHILE A YARD DRIVER DID THAT JOB I DON'T MIND WAITING AROUND AND GETTING PAID HE SAYS NO ONE IN HIS RIGHT MIND WOULD HAVE A PROBLEM WITH THAT BUT HE SAYS TRUCK COMPANIES CAN'T DO THAT FOREVER OR THEY WON'T BE AROUND MR OLP 26 YEARS OLD SAYS HE EXPECTS TO MAKE ABOUT 45000 THIS YEAR IN WAGES AND INCENTIVE BONUSES WHICH IS COMPARABLE TO HIS WAGES AS A TEAMSTERS DRIVER AT ST JOHNSBURY OTHER DRIVERS ACKNOWLEDGE MIXED FEELINGS ABOUT THE TEAMSTERS STRIKE LEE CAMPBELL WHO WORKED AS A TEAMSTERS DRIVER BEFORE HE JOINED CONWAY EARLIER THIS YEAR SAYS I'M TREATED FAIRLY SO THERE REALLY IS NO NEED FOR A UNION SO FAR NONETHELESS MR CAMPBELL SAYS HE SYMPATHIZES WITH STRIKERS CONCERNED ABOUT A MANAGEMENT PROPOSAL TO USE MORE PARTTIME LABOR AT THE UNION CARRIERS IF THIS COUNTRY STARTS WITH THIS FOURHOUR STUFF WE WON'T BE ABLE TO AFFORD HEALTH CARE AND FEED OUR FAMILIES HE SAYS 9404190071 940419 WHAT'S NEWS WORLDWIDE BOSNIAN SERBS PRESSED THEIR ONSLAUGHT IN THE TOWN OF GORAZDE THE MUSLIM ENCLAVE WAS IN DANGER OF FALLING COMPLETELY TO SERB FORCES AS INTERNATIONAL MEDIATORS AND UN OFFICIALS ACKNOWLEDGED THERE WAS NOTHING THEY COULD DO FOR THE TOWN SERB ARTILLERY POUNDED GORAZDE PROMPTING THE UN COMMANDER IN BOSNIA TO ACCUSE SERBS OF EXPLOITING THE UN TO FURTHER THEIR WAR AIMS HE SAID THE TOWN IS AT THEIR MERCY AND WE ARE ON THE EDGE OF A MAJOR HUMANITARIAN CATASTROPHE RUSSIAN PEACE ENVOY CHURKIN DESCRIBED THE SITUATION AS OUT OF CONTROL CLINTON WILL MEET WITH HIS ADVISERS THIS MORNING TO REVIEW US POLICY UN CHIEF BOUTROSGHALI ASKED NATO TO GIVE HIM THE AUTHORITY TO CALL IN AIR STRIKES TO DEFEND ALL THE UNDESIGNATED SAFE AREAS IN BOSNIA A SECOND HOUSE PANEL WILL BEGIN VOTING ON TWO ALTERNATIVES TO CLINTON'S HEALTH LEGISLATION ONE BILL OFFERS MORE BENEFITS FOR LOWINCOME PEOPLE AND SMALL FIRMS WHILE REJECTING MANDATORY HEALTH ALLIANCES AND ASSESSING A 1 PAYROLL TAX ON LARGER COMPANIES THE PANEL ALSO WILL VOTE ON A SINGLEPAYER SYSTEM SOME ENVIRONMENTAL GROUPS SAID CLINTON'S PLAN TO CUT GREENHOUSEGAS EMISSIONS THROUGH LARGELY VOLUNTARY MEASURES WILL FALL FAR SHORT OF ITS TARGET THE GROUPS CONTEND THAT THE PLAN WOULD ACHIEVE ONLY ONETHIRD THE REDUCTIONS NECESSARY TO LOWER PROJECTED EMISSIONS TO 1990 LEVELS BY THE END OF THE CENTURY A BREAKTHROUGH ACCORD SEEMED IMMINENT TO END SOUTH AFRICA'S POLITICAL CRISIS AS ZULU LEADER BUTHELEZI DROPPED HIS DEMAND FOR A DELAY IN NEXT WEEK'S VOTE BUTHELEZI PRESIDENT DE KLERK AND AFRICAN NATIONAL CONGRESS LEADER MANDELA MAY APPROVE A PROPOSAL TODAY TO BRING BUTHELEZI'S PARTY INTO THE ELECTION AN OFFICIAL SAID THE LABOR DEPARTMENT FINED A BRIDGESTONE/FIRESTONE UNIT 75 MILLION OVER THE DEATH OF A WORKER WHO WAS CRUSHED IN A MACHINE IN OCTOBER CALLING THE TIRE MAKER'S ALLEGED INATTENTION TO SAFETY OFFENSIVE AND UNJUSTIFIABLE THE SUPREME COURT AGREED TO DECIDE HOW MUCH LEGAL PROTECTION SHOULD BE PROVIDED TO INVENTORS OF NEW VARIETIES OF CROPS A LOWERCOURT RULING ALLOWED FARMERS TO RESELL UP TO HALF OF THE NEW CROPS THEY RAISE TO OTHER FARMERS FOR SEED THE SEED INDUSTRY CLAIMS THE RULING WOULD CRIPPLE DEVELOPMENT OF NEW CROP VARIETIES A NEW YORK COURT HAS REINSTATED A PROFESSOR WHO WAS FIRED AFTER ALLEGEDLY KISSING A STUDENT THE OPINION CASTIGATES HOFSTRA UNIVERSITY FOR VIOLATING THE PROFESSOR'S PROCEDURAL RIGHTS AND FOR BASING ITS DECISION NOT ON ANYTHING HE DID BUT ON WHAT WAS ACCEPTABLE IN THE EYES OF THE COMMUNITY SOUTH KOREA IS PREPARING TO DEPLOY SOPHISTICATED USBUILT ARTILLERYTARGETING SYSTEMS IN A MOVE THAT COULD UNDERMINE NORTH KOREA'S TACTICAL ADVANTAGE ON THE KOREAN PENINSULA TENSIONS HAVE ESCALATED BECAUSE OF PYONGYANG'S REFUSAL TO ALLOW NUCLEAR INSPECTIONS A MILITANT ISLAMIC GROUP CLAIMED RESPONSIBILITY FOR AN ATTACK ON AN ISRAELI COMMUTER BUS IN WHICH A PALESTINIAN ARMED WITH AN AX AND TWO FIREBOMBS WOUNDED TWO PEOPLE A SOLDIER SHOT AND WOUNDED THE ASSAILANT WHO WAS DETAINED AND THE BULLETS ALSO STRUCK TWO OTHER PASSENGERS ETHNIC MASSACRES HAVE SPREAD THROUGHOUT RWANDA AND AID OFFICIALS SAID TENS OF THOUSANDS OF PEOPLE HAVE BEEN KILLED AND HUNDREDS OF THOUSANDS FORCED TO FLEE THEIR HOMES THE UN FLEW IN SOME SUPPLIES OVER THE WEEKEND BUT A MAJOR RELIEF AIRLIFT HAS BEEN HELD UP BECAUSE WARRING SIDES WON'T GUARANTEE THE SECURITY OF UN DELIVERIES TWO NEPALESE PEACEKEEPERS WERE KILLED DURING INTERCLAN FIGHTING IN MOGADISHU AND A REFUGEE OFFICIAL WAS SHOT DEAD AS HIS PLANE WAS LANDING IN SOUTHERN SOMALIA THE UN REPORTED THAT 39 MILLION WAS STOLEN FROM ITS HEADQUARTERS IN THE CAPITAL MEXICO'S MAIN OPPOSITION PARTY ISSUED A DEMAND FOR MORE DEMOCRATIC REFORMS AHEAD OF THE AUGUST PRESIDENTIAL ELECTION DECLARING THAT A FAIR VOTE IS STILL NOT ASSURED THE GOVERNMENT HAD NO IMMEDIATE COMMENT COSMAS NDETI OF KENYA WON HIS SECOND BOSTON MARATHON SETTING A COURSE RECORD OF 20715 WHILE GERMANY'S UTA PIPPIG WON THE WOMEN'S RACE ALSO SETTING A RECORD 9404190070 940419 BUSINESS BRIEF NS GROUP INC HOURLY WORKERS BEGIN STRIKE AT NEWPORT STEEL SUBSIDIARY NS GROUP INC SAID HOURLY EMPLOYEES AT ITS WHOLLY OWNED SUBSIDIARY NEWPORT STEEL CORP WENT ON STRIKE AFTER VOTING AGAINST A NEW LABOR CONTRACT SUNDAY WORKERS AT THE MINIMILL WHICH PRODUCES TUBULAR STEEL ARE REPRESENTED BY THE UNITED STEELWORKERS OF AMERICA CLIFFORD R BORLAND NS GROUP'S PRESIDENT AND CHIEF EXECUTIVE SAID THE PLANT HAS ABOUT 439 ACTIVE HOURLY EMPLOYEES NS GROUP BASED IN NEWPORT KY HAS THREE OTHER SUBSIDIARIES INCLUDING KOPPEL STEEL CORP A MAKER OF SEAMLESS TUBULAR STEEL HOTROLLED BAR AND SEMIFINISHED STEEL PRODUCTS BUT SINCE EACH UNIT HAS SEPARATE LABOR AGREEMENTS THE STRIKE AT NEWPORT STEEL IS NOT EXPECTED TO SPREAD 9404190069 940419 MARKETING & MEDIA COCACOLA'S PROFIT FOR 1ST QUARTER INCREASED 18 BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA COCACOLA CO HELPED BY IMPROVED VOLUME GROWTH OVERSEAS SAID FIRSTQUARTER EARNINGS JUMPED 18 THE SOFTDRINK CONCERN REPORTED NET INCOME OF 521 MILLION OR 40 CENTS A SHARE UP FROM 442 MILLION OR 34 CENTS A SHARE THE YEAREARLIER FIGURE INCLUDES AN ADJUSTMENT OF 12 MILLION OR ONE CENT A SHARE FOR AN ACCOUNTING CHANGE RELATED TO POSTRETIREMENT BENEFITS REVENUE ROSE 95 TO 335 BILLION FROM 306 BILLION THE EARNINGS PER SHARE WERE A PENNY LOWER THAN SOME PREDICTIONS ANALYSTS CITED THREE REASONS FOR THE DIFFERENCE THE COMPANY'S CONSOLIDATION OF ITS BELGIAN BOTTLERS PROMOTIONAL COSTS RELATED TO WORLD CUP SOCCER ADVERTISING IN MEXICO AND SLIGHTLY HIGHER SWEETENER COSTS WE WERE SLIGHTLY SURPRISED BECAUSE WE WERE LOOKING FOR EARNINGS OF 41 CENTS SAID MICHAEL J BRANCA AN ANALYST WITH NATWEST SECURITIES CORP NEW YORK BUT ON THE PLUS SIDE VOLUME IS BETTER THAN EXPECTED INDEED ONE CLOSELY WATCHED INDICATOR OF COCACOLA'S PERFORMANCE ITS INTERNATIONAL CASE VOLUME ROSE 6 IN THE QUARTER TOPPING THE 5 WHICH ANALYSTS HAD PREDICTED OPERATING IN MORE THAN 160 NATIONS COKE DERIVES ABOUT 80 OF ITS EARNINGS OVERSEAS IN THE EUROPEAN UNION WHICH ACCOUNTS FOR ABOUT 28 OF COCACOLA'S OPERATING PROFITS VOLUME GREW 2 INCREASES IN SPAIN FRANCE AND GERMANY WERE PARTIALLY OFFSET BY A DECLINE IN BRITAIN THE COMPANY SAID VOLUME IN THE PACIFIC LED BY BIG INCREASES IN CHINA AUSTRALIA AND THE PHILIPPINES GREW 10 BUT JAPAN WHICH ACCOUNTS FOR 23 OF COCACOLA'S WORLDWIDE OPERATING PROFIT WAS HURT BY A SLUGGISH ECONOMY AND SAW VOLUME RISE BY ONLY 1 THE COMPANY SAID THE OVERSEAS RESULTS WERE ENCOURAGING UP TO A POINT SAID MARC COHEN AN ANALYST WITH GOLDMAN SACHS & CO IN NEW YORK WHILE VOLUME GAINS WERE STRONGER THAN EXPECTED THE PERFORMANCE IN THE KEY MARKETS OF EUROPE AND JAPAN HE NOTED ARE STILL NOT ACCEPTABLE TO THE COMPANY OR TO INVESTORS ROBERTO C GOIZUETA CHAIRMAN AND CHIEF EXECUTIVE SAID COKE'S VOLUME GROWTH BOTH OVERSEAS AND IN THE US ACCELERATED AS THE QUARTER PROGRESSED THIS BODES WELL HE SAID FOR THE SECOND QUARTER AND THE REST OF THE YEAR AS OUR STRONG MARKETING INITIATIVES TAKE HOLD IN THE HIGHPROFILE US MARKET COCACOLA'S QUARTERLY VOLUME INCREASED 7 ABOVE THE 5 THAT ANALYSTS WERE EXPECTING THE COMPANY SAID GALLON SHIPMENTS OF CONCENTRATES AND SYRUPS TO BOTTLERS INCREASED 11 AT COCACOLA FOODS THE COMPANY'S JUICE DIVISION UNIT VOLUME INCREASED 3 THAT COMPARED WITH A STRONG GAIN OF 39 IN THE YEAREARLIER PERIOD WHICH WAS HELPED BY LOWER PRICES IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE COCACOLA SHARES CLOSED AT 39375 UNCHANGED 9404190068 940419 BUSINESS BRIEF MCGRAWHILL INC PUBLISHER'S EARNINGS FELL 2 AFTER PURCHASE OF JOINT UNIT MCGRAWHILL INC SAID FIRSTQUARTER NET INCOME SLIPPED SLIGHTLY MAINLY REFLECTING THE SEASONAL IMPACT OF A RECENT ACQUISITION MCGRAWHILL REPORTED EARNINGS OF 15 MILLION OR 30 CENTS A SHARE DOWN ABOUT 2 FROM 153 MILLION OR 31 CENTS A SHARE A YEAR AGO LAST OCTOBER MCGRAWHILL PURCHASED ITS PARTNER'S 50 INTEREST IN THE MACMILLAN/MCGRAWHILL PUBLISHING CO JOINT VENTURE MCGRAWHILL SAID ALTHOUGH THE PURCHASE ADDED TO REVENUE OPERATING PROFIT IN ITS EDUCATIONAL AND PROFESSIONAL PUBLISHING DIVISION FELL 233 MILLION IN THE QUARTER TYPICALLY A TIME WHEN SCHOOL PUBLISHERS POST A SEASONAL LOSS THE NEW YORKBASED PUBLISHING AND INFORMATION SERVICES COMPANY SAID OVERALL REVENUE WAS 5598 MILLION UP NEARLY 20 FROM 4669 MILLION 9404190067 940419 BUSINESS BRIEF UST INC SNUFF MAKER POSTS 6 RISE IN FIRSTQUARTER EARNINGS UST INC'S FIRSTQUARTER PROFITS ROSE 6 BASED ON STRONG SNUFF SHIPMENTS FOR THE FIRST THREE MONTHS OF 1994 THE GREENWICH CONNBASED SNUFF MAKER EARNED 888 MILLION OR 42 CENTS A SHARE COMPARED WITH 837 MILLION OR 38 CENTS A SHARE A YEAR AGO PROFIT WAS SLIGHTLY HIGHER THAN ANALYSTS' EXPECTATIONS SALES INCREASED 6 TO 2804 MILLION FROM 265 MILLION DOMESTIC UNITS VOLUME FOR UST'S SMOKELESS TOBACCO INCREASED 59 IN THE FIRST QUARTER GARY BLACK AN ANALYST AT SANFORD C BERNSTEIN & CO SAID UST'S EARNINGS SHOULD INCREASE BY 15 TO 20 FOR THE NEXT THREE QUARTERS UST'S STOCK ROSE 37 CENTS TO 25 A SHARE IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE 9404190066 940419 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 1/4 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 377 30 TO 59 DAYS 380 60 TO 89 DAYS 390 90 TO 119 DAYS 4 120 TO 149 DAYS 408 150 TO 179 DAYS 422 180 TO 239 DAYS 435 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 388 30 DAYS 397 60 DAYS 407 90 DAYS CERTIFICATES OF DEPOSIT 311 ONE MONTH 327 TWO MONTHS 340 THREE MONTHS 378 SIX MONTHS 428 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 370 ONE MONTH 390 THREE MONTHS 420 SIX MONTHS BANKERS ACCEPTANCES 365 30 DAYS 378 60 DAYS 393 90 DAYS 402 120 DAYS 407 150 DAYS 415 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 15/16 3 11/16 ONE MONTH 4 1/16 3 15/16 TWO MONTHS 4 3/16 4 1/16 THREE MONTHS 4 5/16 4 3/16 FOUR MONTHS 4 7/16 4 5/16 FIVE MONTHS 4 9/16 4 7/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/4 ONE MONTH 4 1/16 THREE MONTHS 4 7/16 SIX MONTHS 5 1/16 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 854 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 842 60 DAYS 851 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 630 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 295 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9404190064 940419 BUSINESS BRIEF ADOBE SYSTEMS INC FTC EXPANDS ITS REVIEW OF ALDUS ACQUISITION PLAN ADOBE SYSTEMS INC SAID THE FEDERAL TRADE COMMISSION HAS EXTENDED ITS EXAMINATION UNDER ANTITRUST LAW OF ADOBE'S PROPOSED ACQUISITION OF ALDUS CORP ADOBE AGREED LAST MONTH TO ACQUIRE SEATTLEBASED ALDUS FOR STOCK NOW VALUED AT ABOUT 380 MILLION THE ACQUISITION WOULD CREATE A COMPANY WITH MORE THAN 500 MILLION IN ANNUAL SALES ADOBE OF MOUNTAIN VIEW CALIF SAID IT HAS RECEIVED A SECOND REQUEST FROM THE FTC FOR INFORMATION ABOUT THE PROPOSED MERGER ADOBE SAID IN A RELEASE THAT IT IS UNDERTAKING TO RESPOND TO THE FTC REQUEST A SPOKESWOMAN DECLINED TO COMMENT FURTHER AN FTC SPOKESWOMAN DECLINED TO COMMENT ADOBE IS THE DOMINANT PLAYER IN SOFTWARE USED TO CREATE TYPEFACES IN COMPUTER AND ON PRINTERS BUT ACQUIRING ALDUS WOULDN'T CONSOLIDATE THAT POSITION ALDUS' PRODUCT LINE IS LARGELY IN MARKETS ADOBE ISN'T IN SUCH AS ELECTRONIC PUBLISHING APPLICATIONS 9404190063 940419 CREDIT RATINGS TIFFANY & CO NEW YORK MOODY'S INVESTORS SERVICE INC LOWERED ITS RATINGS ON ABOUT 50 MILLION OF LONGTERM DEBT OF THIS JEWELRY AND LUXURYGOODS MARKETER REFLECTING LOWER THAN ANTICIPATED FINANCIAL PERFORMANCE EXPOSURE TO THE WEAK JAPANESE AND EUROPEAN ECONOMIES AND CHANGING CONSUMER VALUES ABOUT LUXURY GOODS MOODY'S LOWERED EURODEBENTURE RATINGS TO BAA2 FROM BAA1 TIFFANY DECLINED TO COMMENT ON THE DOWNGRADE 9404190062 940419 BUSINESS BRIEF WENDTBRISTOL HEALTH SERVICES CORP INSURANCE HOLDING CONCERN SEES ACQUISITION EXPANSION WENDTBRISTOL HEALTH SERVICES CORP SAID IT'S NEGOTIATING TO ACQUIRE A CONTROLLING INTEREST IN AUSTIN TEXASBASED LIFE HOLDING INC A PRIVATE INSURANCE HOLDING COMPANY AND IS LOOKING TO EXPAND IN THE HEALTHRELATED INSURANCE BUSINESS WENDTBRISTOL OF COLUMBUS OHIO ALREADY OWNS 3 MILLION OF LIFE HOLDINGS' PREFERRED STOCK SHELDON A GOLD WENDTBRISTOL PRESIDENT SAID FURTHER ACQUISITIONS AREN'T ON THE HORIZON BUT WOULD COME THROUGH LIFE HOLDING AS A UNIT THE COMPANY SAID IT'S EXPLORING OPPORTUNITIES TO EXPAND WENDTBRISTOL HOME HEALTH CARE A HOME HEALTHCARE UNIT THE COMPANY SAID IT WAS DELAYING ITS ANNUAL REPORT FORM 10K UNTIL THE END OF THE MONTH CITING THE ACQUISITION TALKS AS WELL AS MOVES TOWARD SETTLING LITIGATION WITH THE STATE OF OHIO REGARDING AN UNREIMBURSED 890000 IN MEDICAID COSTS 9404190061 940419 INTERNATIONAL BRIEF GENERAL ELECTRIC CO PLC VENTURE WITH ALSTHOM SIGNS PACT ON SOUTH KOREAN TRAIN AFTER MONTHS OF WRANGLING FRANCOBRITISH ENGINEERING GROUP GECALSTHOM AND THE SOUTH KOREAN GOVERNMENT SIGNED A FORMAL LETTER OF INTENT TO EQUIP A SOUTH KOREAN HIGHSPEED TRAIN PROJECT VALUED AT 21 BILLION THE COMPANY SAID GECALSTHOM LEADS A CONSORTIUM THAT INCLUDES KOREAN CONCERNS LIKE HYUNDAI GROUP AND DAEWOO CORP GECALSTHOM IS THE ONLY MANUFACTURER OF HIGHSPEED TRAINS IN THE WORLD TO EXPORT THEM GECALSTHOM A JOINT VENTURE OF GENERAL ELECTRIC CO PLC OF THE UK AND FRANCE'S ALCATELALSTHOM SA WON THE CONTRACT AFTER SEVERAL YEARS OF HARD NEGOTIATIONS AGAINST ITS GERMAN RIVAL SIEMENS AG WHOSE INTERCITY EXPRESS TRAIN OPERATES IN GERMANY BUT HAS YET TO BE EXPORTED 9404190060 940419 BUSINESS BRIEF HART HOLDING CO SETTLEMENT WITH HOLDERS RECEIVES COURT APPROVAL HART HOLDING CO SAID IT RECEIVED COURT APPROVAL FOR A SETTLEMENT OF A SHAREHOLDER SUIT CHALLENGING THE FIRM'S PLANS TO GO PRIVATE THROUGH A REVERSE STOCKSPLIT UNDER TERMS OF THE PREVIOUSLY ANNOUNCED SETTLEMENT HART HOLDING IN DARIEN CONN WILL PAY HOLDERS OF FRACTIONAL SHARES FOLLOWING THE SPLIT 225 AN ORIGINAL SHARE UP FROM A PROPOSED 50 CENTS A SHARE IN ADDITION THE COMPANY CHANGED THE EFFECTIVE REVERSE SPLIT TO ONEFOR600 FROM ONEFOR300 SHAREHOLDERS HAD SUED THE COMPANY IN DELAWARE COURT OF CHANCERY PROTESTING TERMS OF THE ORIGINAL PLAN HART HOLDING WHOSE MAIN BUSINESS IS A 94 STAKE IN REEVES INDUSTRIES INC A MAKER OF APPAREL TEXTILES AND INDUSTRIAL COATED FABRICS SAYS IT WILL SAVE IN PUBLIC REPORTING COSTS BY BECOMING A CLOSELY HELD COMPANY 9404190059 940419 LAW LEGAL BEAT NEW YORK STATE COURT REINSTATES FIRED PROFESSOR IN HARASSMENT CASE BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL IN ONE OF THE FIRST COURT DECISIONS ON UNIVERSITIES' EFFORTS TO COMBAT SEXUAL HARASSMENT A NEW YORK COURT HAS REINSTATED A PROFESSOR WHO WAS FIRED AFTER ALLEGEDLY KISSING A STUDENT THE OPINION BY STATE TRIAL COURT JUDGE ALAN OSHRIN CASTIGATES HOFSTRA UNIVERSITY IN HEMPSTEAD NY FOR VIOLATING THE PROCEDURAL RIGHTS OF THE PROFESSOR AND FOR BASING ITS DECISION NOT ON ANYTHING HE DID BUT ON WHAT WAS ACCEPTABLE IN THE EYES OF THE COMMUNITY THE DECISION COMES AT A TIME WHEN COLLEGES ACROSS THE COUNTRY ARE STRUGGLING WITH HOW TO IMPLEMENT NEW DISCIPLINARY PROCEDURES DESIGNED TO CURTAIL SEXUAL HARASSMENT AND ASSAULTS CRITICS HAVE CHARGED THAT MANY SCHOOLS IN THEIR ZEAL TO ASSUAGE CAMPUS CONCERNS ABOUT SUCH ABUSES ARE VIOLATING THE RIGHTS OF THE ACCUSED THE HOFSTRA CASE SHOWS HOW DIFFICULT IT IS TO DEAL WITH THESE ISSUES PROPERLY AND HOW SCHOOLS THAT AREN'T MALICIOUS IN ANY WAY CAN GET INTO TROUBLE SAYS CAROL BOHMER A LAWYER WHO SPECIALIZES IN CAMPUS SEXUAL ISSUES AT THE UNIVERSITY OF PITTSBURGH HOFSTRA TRIED TO USE THE ALLEGATION AGAINST THE PROFESSOR TO SHOW THEY TAKE SEXUAL HARASSMENT SERIOUSLY AND ENDED UP TRAMPLING OVER THE RIGHTS OF THIS PARTICULAR PERSON THE CASE AROSE IN 1992 WHEN A STUDENT ACCUSED REUBEN STARISHEVSKY DIRECTOR OF THE UNIVERSITY'S COUNSELING CENTER OF KISSING HER ON THE LIPS AT THE END OF A COUNSELING SESSION ALTHOUGH A DISCIPLINARY PANEL DETERMINED THAT NO HARASSMENT HAD OCCURRED IN THIS INSTANCE IT RECOMMENDED FIRING DR STARISHEVSKY ANYWAY IN PART BECAUSE TWO ADMINISTRATORS SUBSEQUENTLY HAD COME FORWARD WITH SIMILAR SEXUAL ALLEGATIONS AGAINST HIM JUDGE OSHRIN CRITICIZED HOFSTRA FOR A VARIETY OF PROCEDURAL ERRORS INCLUDING CONSIDERING THE TWO SEPARATE ALLEGATIONS IN MAKING ITS DECISION ABOUT THE CASE PUBLICLY DISCUSSING THE ALLEGATIONS IN VIOLATION OF THE SCHOOL'S CONFIDENTIALITY POLICY AND INTERVIEWING A WITNESS HOSTILE TO DR STARISHEVSKY WITHOUT THE PROFESSOR'S KNOWLEDGE AND AFTER THE DISCIPLINARY HEARING HAD OFFICIALLY ENDED IT'S A TEXTBOOK CASE ON HOW A COLLEGE OR UNIVERSITY ANYWHERE IN THE COUNTRY SHOULD NOT CONDUCT PROCEEDINGS SAID RICHARD CAHN A LAWYER WITH THE MELVILLE NY FIRM CAHN WISHOD & LAMB WHO REPRESENTED DR STARISHEVSKY IN THE CASE THE DECISION IS LIKELY TO BE CLOSELY STUDIED BY UNIVERSITIES LAWYERS SAID BECAUSE IT IS ONE OF THE FEW WRITTEN OPINIONS ON CAMPUS SEXUALHARRASSMENT PROCEEDINGS AND BECAUSE IT EXPLICITLY REQUIRES COLLEGES TO DESIGN POLICIES THAT ARE FAIR AND REASONABLE AND WHICH LEND THEMSELVES TO A RELIABLE DETERMINATION IN ADDITION JUDGE OSHRIN RULED THAT CAMPUS SEXUALHARASSMENT CASES ARE AN EXCEPTION TO THE GENERAL EMPLOYMENTATWILL DOCTRINE WHICH ALLOWS EMPLOYERS TO FIRE EMPLOYEES FOR ANY REASON OR FOR NO REASON AT ALL ONCE A UNIVERSITY ADOPTS A SEXUALHARASSMENT DISCIPLINARY PROCEDURE THE JUDGE SAID IT IS NO LONGER FREE TO FIRE AN ACCUSED INDIVIDUAL IF HE OR SHE IS FOUND TO BE INNOCENT OF THE CHARGES HOFSTRA IS CONSIDERING AN APPEAL OF THE CASE SAID EMIL CIANCIULLI A LAWYER FOR THE UNIVERSITY STARISHEVSKY VS HOFSTRA SUPREME COURT OF NEW YORK INDEX NO STEVEN J COOK THE FORMER SEMINARIAN WHO ADMITTED THAT HE HAD ERRONEOUSLY ACCUSED CHICAGO'S CARDINAL JOSEPH BERNARDIN OF SEXUAL ABUSE HAS SETTLED AN ABUSERELATED SUIT AGAINST A CATHOLIC PRIEST IN CINCINNATI THE ARCHDIOCESE OF CINCINNATI AND MR COOK REACHED THE AGREEMENT LAST WEEK UNDER ITS TERMS MR COOK WHO IS DYING OF AIDS RECEIVED A CASH SETTLEMENT IN RETURN FOR HIS DROPPING THE CASE THE SUIT FILED LAST NOVEMBER NAMED THE ARCHDIOCESE AND REV ELLIS HARSHAM ACCUSING REV HARSHAM OF ABUSING HIM SEVERAL TIMES BETWEEN 1975 AND 1977 WHEN MR COOK ATTENDED A PROGRAM AT A CINCINNATI SEMINARY AT THE TIME CARDINAL BERNARDIN WAS ARCHBISHOP OF CINCINNATI UNDER THE SETTLEMENT NEITHER SIDE WAS PERMITTED TO DISCUSS ITS TERMS SINCE MR COOK'S SUIT WAS FILED A HALFDOZEN OTHER ALLEGED VICTIMS HAVE LODGED SIMILAR COMPLAINTS AGAINST REV HARSHAM THEY ARE CURRENTLY UNDER INVESTIGATION BY THE ARCHDIOCESE A SPOKESMAN SAID YESTERDAY NOTED A FEDERAL APPEALS COURT UPHELD DETROIT LAWYER TIMOTHY M MUCCIANTE'S FRAUD CONVICTION FOR A SCHEME INVOLVING THE BARTER OF BRITISH CONDOMS FOR RUSSIAN CHICKENS MR MUCCIANTE WHO WAS THE SUBJECT OF A FRONTPAGE ARTICLE IN THIS NEWSPAPER WAS SENTENCED TO NEARLY SIX YEARS IN PRISON AND ORDERED TO PAY 973500 IN RESTITUTION TO DEFRAUDED INVESTORS FOLLOWING A SEVENWEEK JURY TRIAL IN NEW YORK IN 1992 HE IS CURRENTLY INCARCERATED AT THE FEDERAL CORRECTIONAL CAMP IN DULUTH MINN ACCORDING TO HIS ATTORNEY LEONARD J LEVENSON OF NEW YORK WHO SAID HIS CLIENT WILL PROBABLY APPEAL THE COURT'S DECISION MILO GEYELIN CONTRIBUTED TO THIS ARTICLE 9404190058 940419 BUSINESS BRIEF UJB FINANCIAL CORP BANKING CONCERN'S EARNINGS ROSE 35 IN FIRST QUARTER UJB FINANCIAL CORP SAID FIRSTQUARTER EARNINGS ROSE 35 AIDED BY A SMALLER PROVISION FOR LOAN LOSSES LOWER COSTS AND HIGHER NET INTEREST INCOME EARNINGS ROSE TO 274 MILLION OR 52 CENTS A SHARE FROM THE YEAR EARLIER 203 MILLION OR 39 CENTS A SHARE ACCOUNTING CHANGES REDUCED THE LATEST QUARTER'S EARNINGS BY 17 MILLION OR THREE CENTS A SHARE AND INCREASED YEAREARLIER EARNINGS BY 38 MILLION OR SEVEN CENTS A SHARE THE PROVISION FOR LOAN LOSSES DECLINED TO 185 MILLION FROM 25 MILLION A YEAR EARLIER WHILE NET INTEREST INCOME ROSE 41 TO 1423 MILLION NONINTEREST EXPENSES DECLINED BY 144 MILLION IN THE FIRST QUARTER FROM A YEAR EARLIER THE PRINCETON NJ BANK WHICH OPERATES IN NEW JERSEY AND EASTERN PENNSYLVANIA HAS 142 BILLION IN ASSETS 9404190057 940419 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY ROCHELLE SHARPE PAID FAMILY LEAVE POLICY EXPERTS WANT THE NEW LAW EXPANDED A CARNEGIE CORP OF NEW YORK TASK FORCE LAST WEEK CALLED FOR PAYING PARTIAL WAGES TO WORKERS WHO TAKE FAMILY LEAVE MANY PARENTS CANNOT AFFORD TO TAKE LONG UNPAID LEAVES IT SAID ALMOST ONE IN FIVE WOMEN FROM LOWINCOME HOUSEHOLDS TAKE LESS THAN THE MEDICALLY ADVISED MINIMUM OF SIX WEEKS EVEN THOUGH THE FAMILY AND MEDICAL LEAVE ACT ALLOWS WORKERS TO TAKE 12 WEEKS OF UNPAID LEAVE FORMER LABOR SECRETARY RAY MARSHALL A TASKFORCE MEMBER SAYS WORKERS SHOULD RECEIVE AT LEAST HALF THEIR PAY WHILE ON LEAVE PERHAPS AS MUCH AS 70 WITH PAYMENTS FINANCED THROUGH TEMPORARY DISABILITY INSURANCE OR THE UNEMPLOYMENTCOMPENSATION SYSTEM WORKERS COULD CONTRIBUTE TO A FUND AND HAVE THE OPTION OF USING THEIR PAYMENTS FOR FAMILY LEAVE OR RETIREMENT MEANWHILE DAYCARE STILL NEEDS IMPROVEMENT STAFF TURNOVER AT CHILDCARE CENTERS WAS 26 BETWEEN 1991 AND 1992 NEARLY FIVE TIMES THE RATE OF PUBLICSCHOOL TEACHERS THE NATIONAL CENTER FOR THE EARLY CHILDHOOD WORK FORCE SAYS STARTING SALARIES FOR COLLEGE GRADUATES ARE UP IN MOST FIELDS TESTING ENGINEERS SO FAR HAVE HAD THE MOST DRAMATIC RISE IN ENTRYLEVEL SALARIES UP 108 IN THE FIRST QUARTER WHILE PRIVATE ACCOUNTANTS SAW A 48 INCREASE THE COLLEGE PLACEMENT COUNCIL REPORTS BUT STARTING NURSING SALARIES DROPPED 124 PHARMACISTS HAD THE TOP AVERAGE STARTING SALARY THIS WINTER 43360 WHILE THE 18000 FOR PHYSICAL THERAPISTS WAS THE LOWEST MORE COMPANIES ARE HIRING STUDENTS FOR SPECIFIC PROJECTS RATHER THAN FOR PERMANENT JOBS SAYS KAY SCANLAN SPOKESWOMAN FOR THE UNIVERSITY OF MASSACHUSETTS IN AMHERST COLLEGE SENIORS ARE MORE AGGRESSIVE AND REALISTIC THAN BEFORE CAREER COUNSELORS SAY THESE STUDENTS ARE AMONG THE FIRST WHO STARTED AND ENDED COLLEGE IN THE SAME RECESSIONARY CYCLE AND MANY HAVE SEEN THEIR PARENTS LAID OFF AFFIRMATIVE ACTION HELPS FIRMS IN THE STOCK MARKET AND THEIR OWN BACKYARDS EMPLOYEES OFTEN GIVE HIGHER RATINGS TO MANAGERS OF DIFFERENT BACKGROUNDS SHOWS A SURVEY CONDUCTED BY ERIQ A HOUSTON MANAGEMENTCONSULTING FIRM THE SURVEY OF 19347 WORKERS FROM 97 COMPANIES SHOWED MEN RANKED WOMEN HIGHER ON 23 OF 25 MANAGEMENT CRITERIA WHITE WORKERS RATED HISPANIC MANAGERS HIGHER THAN THEIR WHITE COUNTERPARTS AND GAVE BETTER RATINGS TO BLACK MANAGERS THAN BLACK EMPLOYEES DID SEPARATELY COMPANIES THAT WIN LABOR DEPARTMENT AWARDS FOR EXEMPLARY AFFIRMATIVEACTION PROGRAMS SEE AN AVERAGE OF 05 INCREASE IN THEIR STOCK PRICES THE DAY FOLLOWING THE AWARD'S ANNOUNCEMENT A NEW STUDY TO BE PUBLISHED IN THE ACADEMY OF MANAGEMENT JOURNAL SHOWS WHILE COMPANIES THAT LOSE DISCRIMINATION SUITS LOSE ABOUT 05 WHILE MEN PREFER FEMALE MANAGERS FEMALE EMPLOYEES ALSO RATED WOMEN MANAGERS MORE HIGHLY THE ERIQ STUDY SHOWS BASEBALL PLAYERS BAT BETTER WITH VISIONS OF DOLLAR SIGNS RUNNING THROUGH THEIR HEADS PLAYERS HAVE SIGNIFICANTLY HIGHER SLUGGING PERCENTAGES THE YEAR BEFORE THEY BECOME FREE AGENTS A UNIVERSITY OF MICHIGAN STUDY SHOWS THE YEAR AFTER THEY SIGN NEW CONTRACTS PERFORMANCE FALLS BACK TO NORMAL LEVELS SAYS AUTHOR TODD LEBOWITZ IVY LEAGUE EDUCATIONS PAY OFF SENIOR MANAGERS WHO GRADUATED FROM IVY LEAGUE SCHOOLS EARNED 32581 MORE PER YEAR AND HAD SIGNIFICANTLY MORE PROMOTIONS ACCORDING TO TEXASBASED SEARCH FIRM PAUL RAY BERNDTSON AND THE CORNELL UNIVERSITY CENTER FOR ADVANCED HUMAN RESOURCE STUDIES ACCESS TO LARGER NETWORKS MAY TRANSLATE INTO INCREASED OPPORTUNITIES A CORNELL PROFESSOR SAID EEOC'S CASELOAD MAY EXPLODE AGAIN THIS SUMMER WHEN THE AMERICANS WITH DISABILITIES ACT EXPANDS THE ACT NOW COVERS 264000 EMPLOYERS WITH 25 OR MORE WORKERS BUT ON JULY 26 IT WILL COVER 666000 BUSINESSES WITH 15 OR MORE EMPLOYEES THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION SAYS THE EEOC RECEIVED 15274 ADARELATED COMPLAINTS IN FISCAL 1993 OLDER MANAGERS ARE IN DEMAND AS COMPANIES FEEL THE DOWNSIDE OF DOWNSIZING MANY COMPANIES THAT BECAME LEAN THROUGH DOWNSIZING FIND MANAGERS LACKING WHEN BUSINESS EXPANDS THEY SEEK EXECUTIVES WHO HAVE GUIDED FIRMS THROUGH ECONOMIC TURNAROUNDS MORE COMPANIES ARE DEFINITELY LOOKING FOR INDIVIDUALS WITH MORE DEPTH AND BREADTH AND THEY AREN'T HUNG UP ON WHETHER SOMEONE IS CURRENTLY IN OUTPLACEMENT SAID TERRY CIMINO WITH EXECUTIVE SEARCH LTD IN CINCINNATI BANKING AND PACKAGEDGOODS COMPANIES HAVE BEEN REQUESTING OLDER EXECUTIVES FOR THE PAST SIX MONTHS SAYS THE JOHNSON GROUP A NEW YORK EXECUTIVESEARCH FIRM SUN MICROSYSTEMS INC MOUNTAIN VIEW CALIF HEADED BY A 39YEAROLD HIRES A 59YEAROLD TO LEAD ITS CORE COMPUTER BUSINESS OTHERS HIRE UNEMPLOYED WORKERS OVER 50 AS CONSULTANTS FOR THREE TO 12 MONTHS OVERALL DEMAND FOR EXECUTIVES JUMPED 50 IN THE LAST YEAR ACCORDING TO JON CRYSTAL PARTNER AT SPENCER STUART AN EXECUTIVESEARCH FIRM THE CHECKOFF A NEW BOOK BY JEFFREY MAYER ON GETTING ORGANIZED AT WORK IS TITLED WINNING THE FIGHT BETWEEN YOU AND YOUR DESK LOOKONTHEBRIGHTSIDE DEPARTMENT SURE WE'VE GOT A FEW PROBLEMS BUT NONE THAT A FAVORABLE COURT DECISION AND A LITTLE LUCK WON'T SOLVE SAYS A CARTOON IN THE BOOK EXECUTIVE SMART CHARTS BY HERB STANSBURY 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 9404190056 940419 BUSINESS BRIEF GENERAL CABLE CORP OFFER RECEIVED TO ACQUIRE ALL OF COMPANY'S COMMON GENERAL CABLE CORP SAID IT RECEIVED A PROPOSAL FROM A THIRD PARTY WHICH IT DIDN'T NAME TO ACQUIRE ALL THE COMPANY'S COMMON STOCK THE PROPOSAL INVOLVES THE PURCHASE OF ALL SHARES OUTSTANDING FOR A CASH PRICE NOT EXCEEDING 6 A SHARE THAT WOULD INDICATE A TOTAL VALUE FOR THE COMPANY OF AS MUCH AS 779 MILLION GENERAL CABLE EMPHASIZED HOWEVER THAT THERE IS NO ASSURANCE A DEFINITIVE OFFER WILL BE MADE OR IF MADE ACCEPTED THE PROPOSAL WOULD ALSO REQUIRE THE PURCHASE OF APPROXIMATELY 2535 MILLION IN LONGTERM SUBORDINATED DEBT OWED BY GENERAL CABLE TO AMERICAN PREMIER UNDERWRITERS INC AT A SIGNIFICANT DISCOUNT TO FACE VALUE GENERAL CABLE AND AMERICAN PREMIER ARE BOTH PART OF A NETWORK OF BUSINESSES OWNED BY CINCINNATI FINANCIER CARL H LINDNER GENERAL CABLE HIGHLAND HEIGHTS KY MAKES AND MARKETS WIRE AND CABLE FOR THE CONSTRUCTION TELECOMMUNICATIONS AND OTHER INDUSTRIES 9404190055 940419 TWO MAKERS OF WELL PUMPS HALT SALE OF LEAD MODEL LOS ANGELES TWO PUMP MAKERS AGREED TO STOP SELLING SUBMERSIBLE WELL PUMPS CONTAINING LEAD IN CALIFORNIA AMID GROWING PRESSURE FROM ENVIRONMENTALISTS AND MEMBERS OF CONGRESS FOR A NATIONWIDE BAN ON SUCH MODELS THE INDUSTRY MOVES CAME ON THE HEELS OF A PAIR OF LAWSUITS FILED BY THE STATE'S ATTORNEY GENERAL AND TWO ENVIRONMENTAL ORGANIZATIONS ALLEGING THAT METAL ALLOYS USED IN THE SUSPECT PUMPS RELEASE HAZARDOUS AMOUNTS OF LEAD INTO PRIVATE WELLS IN SOME LAB TESTS LEAD LEVELS WERE UP TO 100 TIMES HIGHER THAN ALLOWED UNDER PUBLIC DRINKING WATER STANDARDS ATTORNEYS FOR THE STATE AND THE ENVIRONMENTAL GROUPS TOLD FOUR PUMP MAKERS MONTHS AGO ABOUT THE PROBLEM IN THE LAST FEW DAYS GOULDS PUMPS INC OF SENECA FALLS NY AGREED TO STOP SELLING THE SUSPECT PUMPS IN CALIFORNIA AND SAID IT PLANNED TO COMPLETELY STOP MANUFACTURING THEM AS IT DEVELOPED ALTERNATIVES STAYRITE INDUSTRIES INC A UNIT OF MILWAUKEEBASED WICOR INC SAID IT SUSPENDED FURTHER SHIPMENTS TO CALIFORNIA AND ISSUED A VOLUNTARY RECALL OF THE PUMPS HELD BY DISTRIBUTORS IN THE STATE AS EXPECTED THE ENVIRONMENTAL PROTECTION AGENCY URGED OWNERS OF PRIVATE WELLS TO TEST LEAD LEVELS AND URGED THAT ANYONE WHO HAD A SUBMERSIBLE PUMP INSTALLED IN THE PAST YEAR SWITCH TO BOTTLED WATER AT LEAST FOR A WEEK OR TWO UNTIL THEY RECEIVE TEST RESULTS 9404190054 940419 TECHNOLOGY & HEALTH INTEL'S 1STQUARTER NET ROSE 13 BUT PROFIT MARGINS RAISE CONCERNS BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL INTEL CORP POSTED FIRSTQUARTER EARNINGS AT THE UPPER END OF WALL STREET EXPECTATIONS BUT SOME ANALYSTS EXPRESSED CONCERN ABOUT CONTINUED EROSION OF THE BIG CHIP MAKER'S PROFIT MARGINS THE COMPANY SAID NET INCOME ROSE 13 TO 617 MILLION OR 140 A SHARE FROM 548 MILLION OR 124 A SHARE IN THE YEAREARLIER PERIOD SALES ROSE 31 TO 266 BILLION FROM 202 BILLION ANALYSTS HAD EXPECTED THE COMPANY TO REPORT BETWEEN 115 AND 150 A SHARE WITH AN AVERAGE ESTIMATE OF 135 ACCORDING TO ZACHS INVESTMENT RESEARCH INC THE RESULTS WERE ANNOUNCED AFTER STOCK MARKETS CLOSED YESTERDAY INTEL'S SHARES CLOSED AT 5850 OFF 125 ON THE NASDAQ STOCK MARKET AND WERE HOLDING STEADY AT 5850 IN AFTERHOURS TRADING ACCORDING TO INSTINET REUTERS HOLDINGS PLC'S AFTERHOURS TRADING SYSTEM INTEL FACING NEW COMPETITORS SELLING VERSIONS OF ITS HIGHVOLUME 486 MICROPROCESSOR IS MOVING AGGRESSIVELY TO MAKE ITS POWERFUL PENTIUM CHIP A STANDARD IN MASSMARKET PERSONAL COMPUTERS THE SANTA CLARA CALIF COMPANY DID NOT QUANTIFY PENTIUM SHIPMENTS BUT SAID SALES WERE UP SUBSTANTIALLY IN THE PERIOD DESPITE FEARS THAT RIVALS WILL DRIVE PRICES DOWN INTEL SAID THAT ITS AVERAGE PRICE FOR MICROPROCESSORS ROSE SLIGHTLY BUT A LARGER PERCENTAGE OF THE COMPANY'S SALES CAME FROM LESSPROFITABLE FLASH MEMORY CHIPS AND FROM CIRCUIT BOARDS AND COMPLETE COMPUTER SYSTEMS SOLD TO OTHER COMPUTER MAKERS THE PROFITABILITY OF FLASH CHIPS WHICH HOLD DATA WHEN THEIR ELECTRICAL CURRENT IS TURNED OFF DECLINED AS PRICES FELL ANOTHER PROBLEM WAS A SLOW TAKEOFF FOR HANDHELD COMPUTING DEVICES EXPECTED TO USE THE CHIPS INTEL SAID INTEL CITED THE SHIFTING MIX OF BUSINESS IN A CONTINUED DROP IN PROFIT MARGINS WHICH FELL TO 577 FROM 609 IN THE FOURTH QUARTER AND A PEAK OF 645 IN THE FIRST QUARTER OF 1993 THE RATE OF DECLINE SEEMS TO BE ACCELERATING SAID ELI SAYEGH AN ANALYST AT HANCOCK INSTITUTIONAL EQUITY SERVICES THE CYRIXIBM CHALLENGE INTEL'S LATEST CHALLENGE IS A NEW PARTNERSHIP BETWEEN CYRIX CORP AND INTERNATIONAL BUSINESS MACHINES CORP WHICH IS ALREADY PRODUCING 486 CHIPS AND EXPECTS BY LATE THIS YEAR TO BEGIN BUILDING A PENTIUMCLASS CHIP DESIGNED BY CYRIX THOUGH COMPETITORS HAVEN'T HURT INTEL MUCH YET SOME ANALYSTS PREDICT THE COMPANY WILL STEP UP PRICE CUTS TO MEET THEM AND ENCOURAGE CUSTOMERS TO MOVE TO PENTIUM MORE QUICKLY THEY HAVE TO TURBOCHARGE THIS THING AND THEY ONLY WAY THEY ARE GOING TO DO IT IS BY GIVING PRODUCTS AWAY SAID ERIK JANSEN AN ANALYST AT ALEX BROWN INTEL TRIES TO MANAGE ITS BUSINESS TO BOOST ABSOLUTE DOLLARS OF PROFITS RATHER THAN ARTIFICIALLY BOLSTER PROFIT MARGINS NOTED THOMAS THORNHILL AN ANALYST AT MONTGOMERY SECURITIES HE POINTED OUT THAT ORDERS FOR MICROPROCESSORS SET ANOTHER RECORD SUGGESTING CONTINUED HEALTH IN THE PC BUSINESS IN HIGHEND PCS IN THE SECOND QUARTER AND BEYOND THE LATEST QUARTER INCLUDED 14 WEEKS RATHER THAN THE 13 OF THE YEAREARLIER PERIOD INTEL SAID THE EXTRA WEEK WHICH CAME RIGHT AFTER CHRISTMAS HAD IMMATERIAL IMPACT ON SALES BUT MARK EDELSTONE AN ANALYST AT PRUDENTIAL SECURITIES RESEARCH SAID THE INCLUSION OF EXPENSES FROM THE EXTRA WEEK MAY HAVE BEEN A FACTOR IN INTEL'S REDUCED PROFIT MARGINS 9404190053 940419 TECHNOLOGY BRIEF CYPRESS SEMICONDUCTOR CORP CHIP MAKER SAYS NET SURGED FOURFOLD IN FIRST QUARTER CYPRESS SEMICONDUCTOR CORP'S FIRSTQUARTER PROFIT NEARLY QUADRUPLED A SIGN THAT THE CHIP MAKER IS BACK ON THE OFFENSIVE CHIEF EXECUTIVE TJ RODGERS SAID IN AN INTERVIEW THAT THE SAN JOSE CALIF COMPANY EARNED 95 MILLION OR 24 CENTS A SHARE COMPARED WITH 24 MILLION OR SEVEN CENTS A YEAR EARLIER SALES ROSE 21 TO 91 MILLION FROM 70 MILLION CYPRESS'S RESULTS TO BE RELEASED TODAY ARE AT THE HIGH END OF ANALYSTS' ESTIMATES WHICH RANGED FROM 20 CENTS TO 24 CENTS A SHARE ZACKS INVESTMENT RESEARCH INC SAID CYPRESS SHARES ROSE 75 CENTS OR 5 TO 15875 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING ANALYSTS SAID THE NUMBERS SUGGEST THAT THE COMPANY HAS RESPONDED TO HARSH COSTCUTTING AND A SHARP SHIFT IN BUSINESS STRATEGY ORDERED IN 1992 BY MR RODGERS CYPRESS IS MOVING TO ADD PRODUCT LINES AND BOOST MANUFACTURING CAPACITY 9404190052 940419 BUSINESS BRIEF HEALTH MANAGEMENT ASSOCIATES FIRM SAYS NET JUMPED 50 IN ITS FISCAL SECOND QUARTER HEALTH MANAGEMENT ASSOCIATES AIDED BY INCREASES IN OUTPATIENT REVENUE EXPECTS TO REPORT THAT FISCAL SECONDQUARTER EARNINGS JUMPED NEARLY 50 TO ABOUT 14 MILLION FROM 94 MILLION A YEAR EARLIER WILLIAM J SCHOEN CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY WHICH IS BASED IN NAPLES FLA AND OPERATES 21 ACUTECARE AND PSYCHIATRIC HOSPITALS MAINLY IN THE SOUTH AND SOUTHWEST EXPECTS TO REPORT PERSHARE EARNINGS OF 44 CENTS TO 46 CENTS FOR THE QUARTER ENDED MARCH 31 MR SCHOEN SAID COMPARED WITH 32 CENTS LAST YEAR ADJUSTED FOR A 3FOR2 STOCK SPLIT LAST NOVEMBER SECONDQUARTER REVENUE MR SCHOEN SAID INCREASED 32 TO ABOUT 116 MILLION FROM 88 MILLION A YEAR EARLIER MR SCHOEN SAID REVENUE ON A SAMEHOSPITAL BASIS ROSE ABOUT 13 IN THE QUARTER IN ADDITION HE SAID GROWTH IN OUTPATIENT REVENUE ON A SAMEHOSPITAL BASIS INCREASED 34 9404190051 940419 BUSINESS BRIEF TRIBUNE CO FIRSTPERIOD NET ROSE 35 AS MEDIA BUSINESSES GAINED TRIBUNE CO SAID ITS FIRSTQUARTER EARNINGS INCREASED 35 ON THE STRENGTH OF IMPROVED RESULTS FROM MEDIA BUSINESSES AND LOWER EXPENSES THE BIG CHICAGOBASED MULTIMEDIA CONCERN POSTED NET OF 401 MILLION OR 53 CENTS A SHARE COMPARED WITH NET OF 297 MILLION OR 38 CENTS A SHARE IN THE YEAREARLIER QUARTER REVENUE ROSE 11 TO 4828 MILLION FROM 4345 MILLION TRIBUNE SAID OPERATING PROFIT IN ITS PUBLISHING OPERATIONS INCREASED 27 IN THE QUARTER TO 706 MILLION DUE PRIMARILY TO HIGHER ADVERTISING REVENUE MEANWHILE OPERATING PROFIT IN ITS BROADCAST AND ENTERTAINMENT GROUP MORE THAN DOUBLED TO 204 MILLION A RECORD THOSE GAINS WERE OFFSET SOMEWHAT BY AN OPERATING LOSS FROM ITS INTEREST IN THE QUNO CANADIAN NEWSPRINT OPERATIONS THE LOSS WIDENED TO 155 MILLION FROM 400000 A YEAR EARLIER AND TRIBUNE'S SHARE OF THE LOSS 27 MILLION REDUCED ITS EARNINGS BY FOUR CENTS A SHARE 9404190050 940419 MERRILL LYNCH FIRSTQUARTER PROFIT ROSE 21 EXCEEDING ANALYSTS' EXPECTATIONS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MERRILL LYNCH & CO POSTED RECORD FIRSTQUARTER NET INCOME OF 3718 MILLION CONTINUING ITS THREEYEAR PROFIT STREAK AMID A DIFFICULT ENVIRONMENT FOR STOCKS AND BONDS MERRILL THE NATION'S BIGGEST BROKERAGE FIRM EARNED 168 A SHARE FOR THE QUARTER FAR EXCEEDING THE ANALYSTS' CONSENSUS EXPECTATION OF 148 TRACKED BY ZACKS INVESTMENT RESEARCH PROFIT WAS 21 HIGHER THAN THE 307 MILLION OR 135 A SHARE THE BROKERAGE FIRM EARNED IN 1993'S FIRST QUARTER THE 1993 PROFIT WAS REDUCED BY 16CENTASHARE ACCOUNTING CHARGE BUT THE IMPRESSIVE GAINS AREN'T LIKELY TO BE REPEATED IN THE MONTHS AHEAD SECURITIES ANALYSTS QUICKLY WARNED STOCK AND BOND MARKETS HAVE BEEN SLUMPING LATELY AND INDIVIDUAL INVESTORS ARE HANGING ON THE SIDELINES A LITTLE LESS EAGER TO SNAP UP FINANCIAL ASSETS THAN THEY WERE A YEAR AGO WHAT'S MORE AS MERRILL ITSELF WAS READY TO CONCEDE THE FIRST QUARTER STARTED ON A STRONGER NOTE THAN IT ENDED AND MANY OF THE TRENDS THAT CONTRIBUTED TO MARKET VOLATILITY SUCH AS RISING INTEREST RATES CONTINUE TO JAR INVESTORS I DOUBT WE ARE LOOKING FOR A QUARTER AS GOOD AS THIS ONE FOR THE REST OF THE YEAR SAID JAMES P HANBURY A SECURITIES ANALYST AT WERTHEIM SCHRODER & CO MR HANBURY ATTRIBUTED MERRILL'S RECORD PROFIT TO A VERY GOOD FIRST HALF OF THE QUARTER THE UNPLEASANTNESS IN THE SECOND HALF OF THE QUARTER PARTICULARLY MARCH DIDN'T OFFSET THAT IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE INVESTORS RESPONDED POSITIVELY TO MERRILL'S PROFIT REPORT PUSHING THE STOCK UP 1 TO 3625 EVEN AS OTHER STOCKMARKET BAROMETERS FELL SHARPLY UNLIKE OTHER WALL STREET FIRMS WHICH RELY HEAVILY ON EITHER INVESTMENTBANKING OR TRADING FOR THEIR PROFITS MERRILL LYNCH HAS LONG BEEN THE ENVY OF WALL STREET BECAUSE OF ITS EQUALLY STRONG FRANCHISES IN TRADING INVESTMENT BANKING AND CATERING TO INDIVIDUAL INVESTORS I THINK OUR EARNINGS UNDERSCORE THE BREADTH OF OUR REVENUE BASE SAID JOSEPH WILLETT MERRILL'S CHIEF FINANCIAL OFFICER WE HAD VERY DIFFICULT MARKETS IN THE LAST HALF OF THE QUARTER BUT WE MANAGED TO REPORT RECORD REVENUE MR WILLETT SAID TRADING REVENUE AND TO A LESSER EXTENT INVESTMENTBANKING REVENUE WERE A LOT STRONGER IN THE FIRST HALF OF THE QUARTER THAN THE SECOND ACCORDING TO MERRILL TOTAL REVENUE JUMPED 20 TO A RECORD 474 BILLION REFLECTING GAINS IN COMMISSION REVENUE WHICH ROSE 20 TO A RECORD 868 MILLION AND ASSETMANAGEMENT AND PORTFOLIOSERVICE FEES WHICH CLIMBED 23 TO A RECORD 444 MILLION CLIENTS ASSETS UNDER FEEBASED MANAGEMENT BY MERRILL LYNCH ASSET MANAGEMENT GREW 13 TO 164 BILLION AT THE END OF THE QUARTER LARGELY BECAUSE OF AN INCREASE IN MERRILL'S PROPRIETARY STOCK AND BOND MUTUAL FUNDS WHICH CLIMBED 33 TO 73 BILLION MERRILL ALSO CONTINUED TO PROFIT HANDSOMELY FROM A STEEP YIELD CURVE OR THE GAP BETWEEN ITS SHORTTERM BORROWING COSTS AND THE YIELD ON LONGTERM SECURITIES FOR THE FIRST QUARTER MERRILL'S INCOME FROM NET INTEREST JUMPED 14 TO A RECORD 293 MILLION ANALYSTS SAID THE STRENGTH IN THESE THREE AREAS HELPED MASK A DROP IN PROPRIETARY TRADING REVENUE PRINCIPAL TRANSACTIONS TRADING USING MERRILL'S MONEY DROPPED 12 TO 667 MILLION FROM THE RECORD LEVEL OF A YEAR BEFORE MERRILL BLAMED THE DROP ON RISING INTEREST RATES THAT CONTRIBUTED TO LOWER TRADING REVENUE IN CORPORATE DEBT MUNICIPAL SECURITIES AND MONEYMARKET INSTRUMENTS PART OF THE DROP IN TRADING REVENUE STEMMED FROM A MODEST LOSS THE FIRM TOOK AFTER MARKING DOWN PRICES OF SECURITIES PARTICULARLY EMERGING MARKET DEBT THAT IT HELD MANY BIG INVESTORS WERE BURNED WHEN EMERGING DEBT MARKETS TOOK A DIVE EARLIER THIS YEAR MERRILL DECLINED TO SPECIFY THE SIZE OF THE LOSS BUT IT IS UNDERSTOOD TO BE ABOUT 10 MILLION TO 20 MILLION 9404190049 940419 ENTERPRISE LOOKING FOR A NEW BOOKKEEPER BEWARE OF THIS ONE BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL ONE SMALLBUSINESS OWNER KNEW HIM AS DAVID SHELTON ANOTHER KNEW HIM AS MICHAEL HAMMOND WHILE OTHERS KNEW HIM BY ONE OF HIS DOZEN OR SO OTHER ALIASES ALL WISH THEY HAD NEVER KNOWN HIM AT ALL LAWENFORCEMENT AUTHORITIES SAY THAT'S BECAUSE MR SHELTON HIS REAL NAME ISN'T KNOWN IS A MASTER THIEF THESE AUTHORITIES BELIEVE THAT IN THE PAST SEVEN YEARS HE HAS GOTTEN HIMSELF HIRED AS A BOOKKEEPER AT SEVEN SMALL BUSINESSES AROUND SOUTHERN CALIFORNIA AND EMBEZZLED AT LEAST 600000 LITTLE IS KNOWN ABOUT HIM EXCEPT THAT HE SEEMS TO LOVE GOLD BULLION AND OFTEN LIVES IN FLOPHOUSES LAWENFORCEMENT AND CORPORATESECURITY OFFICIALS SAY BUSINESS OWNERS ARE VULNERABLE TO EMPLOYEE THEFT OF ALL KINDS THE LOSSES ARE USUALLY SUFFERED BY SMALLER COMPANIES THAT DON'T HAVE ADEQUATE PROCEDURES FOR SCREENING JOB APPLICANTS AND AUDITING EMPLOYEE ACTIVITIES SAYS NEAL AMICK A VICE PRESIDENT AT PINKERTON'S INC A SECURITYSERVICES CONCERN IN LOS ANGELES MOST OF THE THIEVES ARE DISGRUNTLED OR FINANCIALLY TROUBLED BUT EXPERTS SAY PROFESSIONAL THIEVES SUCH AS MR SHELTON ARE PARTICULARLY TOUGH TO CATCH BECAUSE THEY TEND TO BE VERY GOOD AT WHAT THEY DO MR SHELTON APPEARS TO HAVE PLANNED HIS JOBS FROM BEGINNING TO END SAYS RICHARD WADE AN ASSISTANT SPECIAL AGENT IN CHARGE OF THE LOS ANGELES OFFICE OF THE FEDERAL BUREAU OF INVESTIGATION ONE OF THE AGENCIES TRYING TO TRACK DOWN MR SHELTON NATHAN J INTERNATIONAL INC A SMALL CLOTHING MAKER IN HUNTINGTON BEACH CALIF KNOWS MR SHELTON'S METHODS WELL WHEN OWNER CELIA IMPERIALE PLACED AN AD FOR A BOOKKEEPER MR SHELTON OPERATING AS MICHAEL HAMMOND RESPONDED MS IMPERIALE AND OTHERS DESCRIBE MR HAMMOND AS BEING IN HIS EARLY 50S WITH THINNING BROWN HAIR A HUMP ON HIS BACK A BULBOUS RED NOSE WITH PROMINENT VEINS AND A WART ABOVE HIS UPPER LIP HE MOVED AND TALKED VERY SLOWLY ALMOST AT A SNAIL'S PACE MS IMPERIALE SAYS BUT HE CLEARLY KNEW HIS WAY AROUND ACCOUNTING AND COMPUTERS HE ALSO TALKED OF HIS WIFE TWO CHILDREN AND SUBURBAN HOME HE SAID HE WAS COVERED BY HIS WIFE'S HEALTH INSURANCE AND THEREFORE WOULDN'T NEED COVERAGE HE SEEMED THE PERFECT EMPLOYEE SAYS MS IMPERIALE HIS RESUME SAID THAT HE HAD BEEN A BOOKKEEPER FOR MORE THAN 20 YEARS WITH TWO COMPANIES THE MOST RECENT A MANUFACTURING CONCERN WHERE HE HAD SUPPOSEDLY WORKED SINCE 1981 WHEN MS IMPERIALE CALLED THE NUMBER OF MR SHELTON'S CURRENT EMPLOYER A WOMAN ANSWERED WITH THE NAME OF THE FIRM SHE THEN PASSED MS IMPERIALE ON TO A MAN THE SUPPOSED OWNER WHO GAVE MR SHELTON A GLOWING RECOMMENDATION MS IMPERIALE SAYS SHE DID TRY TO CALL THE PRIOR EMPLOYER IN FRESNO CALIF A CITY IN WHICH MR SHELTON HAS OFTEN CLAIMED TO HAVE WORKED OR GONE TO COLLEGE SHE DIDN'T FIND A LISTING FOR THE COMPANY BUT THAT DIDN'T BOTHER HER AFTER ALL HE HADN'T BEEN AT THE COMPANY IN 12 YEARS LAWENFORCEMENT OFFICIALS SAY MR SHELTON'S RESUMES ARE CLEVERLY CONSTRUCTED BY SHOWING ONLY TWO EMPLOYERS WITH LONG SERVICE AT EACH HE PROJECTS STABILITY BESIDES THESE OFFICIALS ADD IT IS UNLIKELY THAT MANY EMPLOYERS WOULD EVEN BOTHER TO CHECK THE SECOND REFERENCE AS IT IS INVARIABLY AT LEAST A DECADE OLD MS IMPERIALE'S EXPERIENCE SHARED BY OTHER VICTIMS INDICATES THAT MR SHELTON HAS ACCOMPLICES THE NUMBER THAT MS IMPERIALE CALLED BELONGED TO A PHONE IN A ROOM AT A VERY LOWRENT MOTEL AUTHORITIES SAY MR SHELTON HAS REPEATEDLY USED FLOPHOUSES AS PHONE SITES AND LIVING QUARTERS AFTER HIRING THE BOOKKEEPER MS IMPERIALE SAYS SHE HAD NO CAUSE TO THINK ANYTHING WAS AMISS UNTIL ONE FRIDAY LAST DECEMBER WHEN MR SHELTON LEFT AND NEVER RETURNED THAT WAS THE DAY THAT NATHAN J'S OUTSIDE AUDITOR WAS DUE FOR HIS QUARTERLY CHECK OF THE BOOKS THE AUDITOR AND MS IMPERIALE FOUND THAT 44000 HAD BEEN STOLEN MR SHELTON'S MAIN METHOD WAS TO POCKET CASH RECEIPTS FROM NATHAN J'S THREE RETAIL STORES SAYS MS IMPERIALE SHE SAYS HE MADE OUT A PROPER DEPOSIT SLIP WHICH SHE WOULD CHECK AT THE OFFICE BUT BEFORE HE GOT TO THE BANK SHE SAYS HE MADE OUT A NEW SLIP FOR ABOUT 10 OF THE TOTAL AND THE REST WENT INTO HIS POCKET HE HID THE SHORTFALL BY MANIPULATING THE COMPUTER SYSTEM AND NOT PAYING STATE AND FEDERAL TAXES THAT WERE DUE SHE SAYS AT OTHER COMPANIES MR SHELTON SOMETIMES CREATED FAKE SUPPLIERS WHO BILLED FOR WORK NEVER DONE OWNERS SAY HE THEN SENT CHECKS OFF TO ACCOUNTS HE CONTROLLED UNDER ALIASES SAY VICTIMS AND POLICE HE PUT SOME WORK INTO HIS SCHEME SAYS ELAINE HUTCHISON OWNER OF PARAGON EQUITIES INC A LONG BEACH CALIF PROPERTYMANAGEMENT COMPANY MS HUTCHISON SAYS MR SHELTON OPERATING AS MICHAEL GORDON STOLE 72000 FROM HER CONCERN MR SHELTON LEAVES FEW FOOTPRINTS AUTHORITIES SAY HE DROVE NONDESCRIPT CARS AND WOULD PARK THEM AWAY FROM THE PLACES WHERE HE WORKED AND LIVED REDUCING THE CHANCE ANYONE WOULD GET A GOOD LOOK HE DIDN'T SOCIALIZE WITH COLLEAGUES AND INVARIABLY AVOIDED OFFICE PICTURES EXCEPT FOR ONE WHERE HE HAD HIS BACK TO THE CAMERA WHEN MR SHELTON LEFT NATHAN J SAYS MS IMPERIALE HE TOOK HIS GENERAL PERSONNEL FILE AND THE PRIVATE FILE SHE KEPT IN HER OFFICE HE ALSO TOOK THE CARDS WITH HIS SUPPOSED HOME ADDRESS AND PHONE NUMBER OUT OF EACH ROLODEX IN THE OFFICE ALONG WITH CREDITCARD APPLICATION FORMS THAT HAD BEEN MAILED TO MS IMPERIALE HE LATER OBTAINED THE CARDS AND RAN UP SOME 2000 IN DEBT SHE SAYS BESIDES FEELING LIKE AN IDIOT FOR BEING TAKEN MS IMPERIALE SAYS SHE IS STILL PAYING OFF LOANS SHE TOOK OUT TO MAKE GOOD ON THE TAXES HE NEVER PAID SOME OF MR SHELTON'S VICTIMS NOW HIRE PRIVATE INVESTIGATORS TO DO BACKGROUND CHECKS OF PROSPECTIVE EMPLOYEES SOME HAVE BROKEN UP FINANCIAL TASKS IN THEIR COMPANIES GIVING LESS CONTROL TO ANY ONE PERSON SOME HAVE BOUGHT OR INCREASED THEIR INSURANCE AGAINST EMPLOYEE THEFT AUTHORITIES SAY MR SHELTON'S BANK RECORDS SHOW HE BOUGHT GOLD BULLION IN 10000 LOTS HE HAD THE GOLD SENT TO ONE OF HIS TEMPORARY POST OFFICE BOXES FROM THERE IT DISAPPEARED JEFF NELSON A DETECTIVE WITH THE HUNTINGTON BEACH POLICE HAS BECOME SO FASCINATED WITH MR SHELTON THAT HE DOES SOME INVESTIGATIVE WORK ON HIS OWN TIME NOW THOUGH THE LEADS ARE SPARSE HE TAKES HEART FROM KNOWING THAT A FELLOW OFFICER ONCE TRACKED DOWN A SIMILAR CROOK AFTER FOLLOWING HIM THROUGH 35 ALIASES WITH MR SHELTON THE DETECTIVE IS UP TO 15 MR NELSON CONCEDES HE MAY NEVER FIND OUT HIS TARGET'S TRUE IDENTITY BUT THE POLICE OFFICER SAYS HE IS ALMOST CERTAIN OF ONE THING HE IS DOING IT TO SOME OTHER BUSINESS AS WE SPEAK 9404190048 940419 TISCH MAY BE CONSIDERING MAKING AN OFFER FOR MACY NEW YORK LAURENCE TISCH TOLD OTHER RH MACY & CO BOARD MEMBERS THAT HE WOULD CONSIDER MAKING A BID FOR THE RETAILER IF HE THOUGHT SOMEONE WAS BIDDING TOO LITTLE ACCORDING TO A PERSON FAMILIAR WITH YESTERDAY'S MEETING MR TISCH FLOATED A PLAN TO REORGANIZE MACY IN DECEMBER 1991 A FEW WEEKS BEFORE THE RETAILER FILED FOR CHAPTER 11 BANKRUPTCY COURT PROTECTION HE WAS UNABLE TO COME TO TERMS WITH PRUDENTIAL INSURANCE CO OF AMERICA A CREDITOR MR TISCH COULD NOT BE REACHED FOR COMMENT MACY OFFICIALS WOULD NOT COMMENT ON MR TISCH'S REMARKS COURTAPPOINTED MEDIATOR CYRUS VANCE SO FAR IS ALLOWING ONLY MACY AND FEDERATED DEPARTMENT STORES INC TO DRAW UP PROPOSALS FOR REORGANIZING MACY MR TISCH MUST SEEK MR VANCE'S APPROVAL BEFORE BEING ALLOWED TO OFFER A PLAN OF REORGANIZATION ACCORDING TO FEDERAL BANKRUPTCY JUDGE BURTON LIFLAND'S ORDER MR TISCH HAS NOT YET SOUGHT THAT PERMISSION ACCORDING TO PEOPLE FAMILIAR WITH THE PROCESS THE MACY BOARD WILL MEET ONCE MORE BEFORE APRIL 29 THE DEADLINE SET LAST WEEK BY MR VANCE FOR BOTH FEDERATED AND MACY'S PROPOSALS TO CREDITORS 9404190047 940419 BUSINESS BRIEF KENTUCKY CENTRAL LIFE INSURANCE CO BOARD HOLDERS FILE MOTION TO SET ASIDE BID PROCESS KENTUCKY CENTRAL LIFE INSURANCE CO'S BOARD AND SOME SHAREHOLDERS FILED A MOTION YESTERDAY TO SET ASIDE THE BID PROCESS THAT WOULD AWARD THE FAILED INSURER TO NORTH CAROLINABASED JEFFERSONPILOT CORP THE DIRECTORS AND SHAREHOLDERS ASSERT THAT JEFFERSONPILOT ASSUMES NO INSURANCE RISK IN ACQUIRING THE INSURER'S LIFE AND HEALTH BUSINESSES AND WOULD BENEFIT FROM HUGE UNEARNED WINDFALL PROFITS ACCORDING TO A STATEMENT THE GROUP IS ASKING THE FRANKLIN COUNTY CIRCUIT COURT IN FRANKFORT KY TO DISAPPROVE THE TRANSFER OF KCL TO JEFFERSONPILOT AND TO CONSIDER OUR PLAN FOR SELFREHABILITATION SAID PAUL SULLIVAN A LEXINGTON KY ATTORNEY FOR THE GROUP KENTUCKY INSURANCE COMMISSIONER DON STEPHENS RECOMMENDED IN FEBRUARY THAT THE BID BY JEFFERSONPILOT LIFE INSURANCE CO A UNIT TO ACQUIRE LEXINGTONBASED KENTUCKY CENTRAL BE APPROVED BY THE COURT A JEFFERSONPILOT SPOKESMAN SAID THE INSURER WAS STILL REVIEWING THE COUNTERPROPOSAL AND DIDN'T HAVE ANY IMMEDIATE COMMENT 9404190046 940419 BUSINESS BRIEF PANHANDLE EASTERN CORP PIPELINE COMPANY SIGNS PACT FOR MITCHELL ENERGY ASSETS PANHANDLE EASTERN CORP SAID IT SIGNED A LETTER OF UNDERSTANDING TO ACQUIRE CERTAIN MITCHELL ENERGY & DEVELOPMENT CORP ASSETS FOR 120 MILLION CENTANA ENERGY CORP A SUBSIDIARY OF PANHANDLE EASTERN SAID THE TRANSACTION WOULD INCLUDE MITCHELL ENERGY'S WINNIE PIPELINE CO INTRASTATE PIPELINE SPINDLETOP GAS STORAGE FACILITY AND A LIQUID ENERGY CORP NATURALGAS PROCESSING PLANT THE LETTER OF UNDERSTANDING COVERING THOSE ASSETS WAS SIGNED WITH MITCHELL'S MND ENERGY CORP SUBSIDIARY PANHANDLE EASTERN A HOUSTONBASED NATURALGAS PIPELINE COMPANY SAID THE PURCHASE IS SUBJECT TO BOARD AND REGULATORY APPROVAL MITCHELL ENERGY AN ENERGY AND REALESTATE CONCERN BASED IN THE WOODLANDS TEXAS AND PANHANDLE EASTERN SAID THE COMPANIES EXPECT THE TRANSACTION TO BE COMPLETED IN JUNE 9404190045 940419 ANNOUNCED MERGERS' VALUE DOUBLED IN FIRST QUARTER NEW YORK THE VALUE OF ANNOUNCED MERGERS AND ACQUISITIONS MORE THAN DOUBLED IN THE FIRST QUARTER ACCORDING TO A STUDY BY MERRILL LYNCH & CO'S BUSINESS ADVISORY SERVICES THE COMBINED VALUE OF PROPOSED MERGERS AND ACQUISITIONS IN WHICH A PRICE WAS DISCLOSED ROSE TO 352 BILLION COMPARED WITH 174 BILLION A YEAR AGO THE 1994 QUARTER HAD SIX 1 BILLIONPLUS DEALS ANNOUNCED COMPARED WITH TWO SUCH ANNOUNCEMENTS A YEAR EARLIER THE SCHAUMBURG ILL SPECIALIZED FINANCE CONSULTING UNIT SAID ANNOUNCED TRANSACTIONS NUMBERED 658 UP 23 FROM 534 IN THE YEAREARLIER PERIOD OF THOSE ANNOUNCED IN THE 1993 QUARTER 333 CLOSED IN THE PAST YEAR MERRILL LYNCH REPORTED THAT THE LARGEST TRANSACTION ANNOUNCED IN THE LATEST QUARTER WAS NATIONAL AMUSEMENTS INC'S PROPOSED 84 BILLION ACQUISITION OF BLOCKBUSTER ENTERTAINMENT CORP THE LARGEST DEAL ANNOUNCED IN THE 1993 QUARTER WAS 22 BILLION THE DATA FOR THE SURVEY WERE CULLED FROM NEWS OUTLETS COMPANY NEWS RELEASES ADVERTISEMENTS AND OTHER RESOURCES IT INCLUDED DEALS VALUED AT A MINIMUM OF 1 MILLION AND INVOLVING AT LEAST ONE US COMPANY 9404190044 940419 BUSINESS BRIEF BOSTON INSTITUTIONAL SERVICES INC FIRM BUYS FUNDS DISTRIBUTOR FROM LEHMAN BROTHERS INC BOSTON INSTITUTIONAL SERVICES INC BOSTON SAID IT ACQUIRED FUNDS DISTRIBUTOR INC FROM LEHMAN BROTHERS INC TERMS WEREN'T DISCLOSED FUNDS DISTRIBUTOR INC PROVIDES MUTUALFUND DISTRIBUTION SERVICES TO BANKS FUNDS DISTRIBUTOR'S BANKRELATED MUTUALFUNDS BUSINESS CONSISTS OF 12 REGISTERED INVESTMENT COMPANIES REPRESENTING ABOUT 90 INVESTMENT PORTFOLIOS AND ASSETS OF MORE THAN 17 BILLION BOSTON INSTITUTIONAL FORMERLY A UNIT OF LEHMAN WHICH IS A SUBSIDIARY OF AMERICAN EXPRESS CO NEW YORK PROVIDES SECURITIES RESEARCH EXECUTION AND SETTLEMENT SERVICES THE COMBINATION OF THE TWO COMPANIES WILL CREATE ONE OF THE NATION'S LARGEST THIRDPARTY SPONSORS AND DISTRIBUTORS OF MUTUALFUND PRODUCTS SAID WILLIAM J NUTT CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BOSTON INSTITUTIONAL 9404190043 940419 WHAT'S NEWS BUSINESS AND FINANCE THE FED RAISED SHORTTERM INTEREST RATES ANOTHER 1/4 PERCENTAGE POINT AND IS LIKELY TO KEEP BOOSTING RATES IF THE ECONOMY CONTINUES TO SHOW EXUBERANCE THE FED RAISED ITS TARGET FOR THE FEDERAL FUNDS RATE AT WHICH BANKS LEND TO EACH OTHER TO 3 3/4 THE THIRD SUCH INCREASE SINCE THE BEGINNING OF FEBRUARY CITIBANK BOOSTED ITS PRIME INTEREST RATE TO 675 AND OTHER BIG BANKS FOLLOWED SUIT THE FED'S MOVE DROVE DOWN STOCK AND BOND PRICES THE DOW JONES INDUSTRIAL AVERAGE SANK 4105 POINTS OR 11 TO 362042 THE PRICE OF THE 30YEAR TREASURY BOND FELL MORE THAN 1 3/8 POINTS ITS YIELD JUMPED TO 742 THE HIGHEST RATE SINCE JANUARY 1993 GTE PLANS TO OFFER A NATIONWIDE POCKETPHONE SERVICE BY YEAR END BECOMING THE FIRST MAJOR CELLULAR CARRIER TO LAUNCH A PREEMPTIVE STRIKE AGAINST CONCERNS THAT ARE PLANNING TO PROVIDE PERSONAL COMMUNICATIONS SERVICES GTE'S SERVICE WOULD BE PRICED CHEAPER THAN MOST CELLULARPHONE SERVICES MICROSOFT'S NET JUMPED 38 IN ITS THIRD QUARTER BEFORE A SPECIAL CHARGE NET AFTER THE CHARGE ROSE ONLY 53 THE COMPANY'S REVENUE JUMPED 30 INTEL'S PROFIT ROSE 13 IN THE FIRST QUARTER BUT SOME ANALYSTS EXPRESSED CONCERN ABOUT CONTINUED EROSION OF THE BIG CHIP MAKER'S PROFIT MARGINS KIDDER'S OUSTED CHIEF GOVERNMENT BOND TRADER IS BEING INVESTIGATED BY THE US ATTORNEY'S OFFICE IN MANHATTAN AS WELL AS BY THE SEC FOLLOWING THE INVESTMENT BANK'S ALLEGATIONS THAT HE CREATED PHANTOM PROFITS PEOPLE CLOSE TO THE MATTER SAID GE CHAIRMAN JOHN WELCH STOPPED SHORT OF DENYING THAT GE MIGHT EVENTUALLY SELL ITS KIDDER UNIT IN THE WAKE OF THE PHANTOM TRADING SCANDAL THE PHONY TRADES RAISE QUESTIONS ABOUT WHETHER EVEN THE MOST SOPHISTICATED COMPLIANCE PROGRAM CAN REALLY WORK AT A WALL STREET SECURITIES FIRM FORD IS EXPECTED TO NAME A PRESIDENT OF ITS WORLDWIDE AUTOMOTIVE OPERATIONS LATER THIS WEEK AS PART OF A BROADER GLOBAL RESTRUCTURING CITICORP PLANS TO REINSTATE ITS QUARTERLY DIVIDEND AT 15 CENTS A SHARE THE FIRST DIVIDEND ON COMMON IN 2 1/2 YEARS SEPARATELY CITIBANK LOST NINE FOREIGNEXCHANGE TRADERS TO DEUTSCHE BANK JAPANESE INVESTORS IN US REAL ESTATE ARE INCREASINGLY RESTRUCTURING OR SELLING ASSETS AND TAKING THEIR LOSSES ACCORDING TO A RECENT SURVEY KOHLBERG KRAVIS'S WALTER INDUSTRIES ISN'T REQUIRED TO COVER A FORMER SUBSIDIARY'S ASBESTOS LIABILITY A BANKRUPTCYCOURT JUDGE RULED MERRILL LYNCH POSTED RECORD FIRSTQUARTER PROFIT OF 3718 MILLION CONTINUING ITS THREEYEAR PROFIT STREAK AMID A DIFFICULT TIME FOR STOCKS AND BONDS NATIONSBANK HAD LOWER FIRSTQUARTER PROFIT AFTER A YEARAGO GAIN FROM AN ACCOUNTING CHANGE BUT SHOWED SHARP IMPROVEMENT IN OPERATING EARNINGS COCACOLA SAID FIRSTQUARTER PROFIT JUMPED 18 REFLECTING BETTERTHANEXPECTED VOLUME GROWTH OVERSEAS THE BEVERAGE COMPANY POSTED NET OF 521 MILLION OR 40 CENTS A SHARE CHINA'S GDP ROSE 127 IN THE FIRST QUARTER A SLOWING FROM LAST YEAR'S 134 GROWTH RATE BUT SOME ANALYSTS WARN THAT OFFICIAL FIGURES MAY UNDERSTATE THE PERIL OF INFLATION CONSUMER PRICES SHOT UP 201 FROM A YEAR AGO BONDS LEHMAN BROTHERS TREASURY INDEX 504323 OFF 6591 COMMODITIES OIL 1665 A BARREL UP SEVEN CENTS DOW JONES FUTURES INDEX 13677 OFF 064 SPOT INDEX 13102 UP 028 DOLLAR 10318 YEN OFF 027 17090 MARKS OFF 00045 9404190042 940419 BUSINESS BRIEF POLAROID CORP COMPANY SWINGS TO A PROFIT FROM NET LOSS A YEAR EARLIER POLAROID CORP REPORTED FIRSTQUARTER NET INCOME OF 14 MILLION OR THREE CENTS A SHARE COMPARED WITH A NET LOSS OF 1432 MILLION OR 307 A SHARE IN THE YEAREARLIER QUARTER WHICH INCLUDED ACCOUNTING AND RESTRUCTURING CHARGES THE CAMBRIDGE MASS CAMERA COMPANY SAID SALES FOR THE QUARTER ENDED APRIL 3 FELL 13 TO 4626 MILLION FROM 4685 MILLION THE DROP REFLECTED THE END OF AN IDENTIFICATION PROGRAM IN MEXICO IN WHICH POLAROID CAMERAS AND FILM WERE USED TO REGISTER VOTERS POLAROID SAID IT EXPERIENCED SUBSTANTIAL INCREASES IN SALES OF INSTANT CAMERAS AND FILM IN OTHER INTERNATIONAL MARKETS DOMESTICALLY SALES FELL SLIGHTLY BECAUSE OF DROPS IN SALES OF VIDEOTAPE AND CONVENTIONAL CAMERAS AND FILM IT SAID PROFITS WERE HURT BY STARTUP COSTS RELATED TO A COATING FACILITY AND MARKETING COSTS ASSOCIATED WITH THE NEW HELIOS LASER MEDICALIMAGING SYSTEM YEAREARLIER RESULTS WERE AFFECTED BY ACCOUNTING CHANGES AND A RESTRUCTURING CHARGE POLAROID SAID THAT ON AN OPERATING BASIS YEAREARLIER PROFIT WAS EQUAL TO 24 MILLION OR FIVE CENTS A SHARE 9404190041 940419 REVIEW & OUTLOOK EDITORIAL ENRAGING SPECIES ACT THE THIRD AMENDMENT TO THE BILL OF RIGHTS STATES THAT NO SOLDIER CAN BE QUARTERED IN ANY HOME WITHOUT THE CONSENT OF THE OWNER SOMEHOW THOUGH IT APPARENTLY NEVER OCCURRED TO THE FOUNDING FATHERS THAT WE MIGHT SOMEDAY NEED AN AMENDMENT AGAINST THE ARBITRARY QUARTERING OF ENDANGERED SPECIES ON PRIVATE LAND GOOD THING THE FOUNDERS DIDN'T LIVE TO SEE THE DAY OURS WHEN PROPERTY OWNERS ALL OVER AMERICA WOULD BE TOLD TO IDLE THEIR LAND AND EFFECTIVELY USE IT ONLY AS A WILDLIFE REFUGE AMBITIOUS GOVERNMENT ECOSYSTEM MANAGEMENT PLANS ARE LOCKING UP MILLIONS OF ACRES OF PRIVATE LAND WITHOUT COMPENSATION TAKE THE SPOTTED OWL WHICH HAS EFFECTIVELY HALTED MOST TIMBER PRODUCTION IN THE PACIFIC NORTHWEST THE ANDERSON & MIDDLETON LOGGING CO HAS BEEN ENJOINED FROM HARVESTING ANY TIMBER ON 72 ACRES OF ITS LAND IN WASHINGTON STATE NO SPOTTED OWLS LIVE ON ITS LAND BUT TWO HAVE BEEN SEEN NESTING ON GOVERNMENT LAND 16 MILES AWAY RESIDENTIAL OWNERS ARE ALSO AFFECTED MARJ AND ROGER KRUEGER SPENT 53000 ON A LOT FOR THEIR DREAM HOUSE IN THE TEXAS HILL COUNTRY BUT THEY AND OTHER OWNERS HAVE BEEN BARRED FROM BUILDING BECAUSE THE GOLDENCHEEKED WARBLER HAS BEEN FOUND IN THE CANYONS ADJACENT TO THEIR LAND THE GOVERNMENT JUSTIFIES THESE RESTRICTIONS BY NOTING THAT THE ENDANGERED SPECIES ACT BARS ACTIONS THAT HARM CRITTERS PROTECTED UNDER IT THE US FISH AND WILDLIFE SERVICE INTERPRETS THAT TO INCLUDE ANY ACTION THAT RESULTS IN SIGNIFICANT HABITAT MODIFICATION THAT COULD AFFECT THE BREEDING FEEDING OR SHELTERING PATTERNS OF A SPECIES IT HAS ISSUED COUNTLESS EDICTS BARRING EVEN SUCH ORDINARY USES OF PROPERTY AS CLEARING BRUSH OR HARVESTING TREES BECAUSE THEY MIGHT MODIFY NEARBY HABITAT EVEN SOME ENVIRONMENTALISTS HAVE QUESTIONED IF CONGRESS INTENDED SUCH RESTRICTIONS MICHAEL BEAN CHAIRMAN OF THE ENVIRONMENTAL DEFENSE FUND'S WILDLIFE PROGRAM HAS NOTED THERE ARE FORCEFUL ARGUMENTS THAT SUCH A BROAD INTERPRATION IS IMPROPER LAST MONTH THE US COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA AGREED IT INVALIDATED THE US FISH AND WILDLIFE REGULATION THAT PREVENTED HABITAT MODIFICATION ON PRIVATE LAND THE COURT RULED THAT THE REGULATION WAS NEITHER CLEARLY AUTHORIZED BY CONGRESS NOR A REASONABLE INTERPRETATION' OF THE STATUTE THE COURT'S DECISION ENRAGED RADICAL ENVIRONMENTALISTS THEY SUPPORT A PROVISION TO THE MARINE MAMMAL PROTECTION ACT NOW BEFORE CONGRESS THAT WOULD EXPLICITLY ALLOW THE REGULATION OF PRIVATE LAND USE AND WOULD BOLSTER THE CLINTON ADMINISTRATION IN ITS ATTEMPT WHICH IT ANNOUNCED YESTERDAY TO OVERTURN THE DC COURT OF APPEALS DECISION THE SENATE REFUSED TO INCLUDE SUCH LANGUAGE IN ITS VERSION OF THE BILL BUT IT MAY WIND UP ADDING IT IN CONFERENCE IF THE HOUSE INSISTS TODAY REP GERRY STUDDS WILL DEMAND A HOUSE VOTE TO INSIST THE REGULATORY LANGUAGE BE RETAINED ENVIRONMENTAL GROUPS AGITATED BY RECENT PROPERTY RIGHTS VICTORIES IN CONGRESS ARE DETERMINED TO PREVAIL THIS TIME THE DISPUTE OVER ENDANGERED SPECIES ISN'T OVER WHETHER OR NOT SOCIETY SHOULD PROTECT THEM IT'S BETWEEN A POLICY THAT REFUSES TO SET PRIORITIES AND INSISTS ON PRESERVATION NO MATTER WHAT THE COSTS TO THE HUMAN SPECIES OR ALTERNATIVELY A MORE BALANCED APPROACH WE ARE HARD PUT TO SEE HOW THE SPECIES ACT CAN ITSELF SURVIVE POLITICALLY OPERATING AS AN ENVIRONMENTALIST LAND GRAB OF OTHER PEOPLE'S PROPERTY THE SERIOUSNESS OF THE CLAIMS FOR THESE VARIOUS SPECIES MIGHT BE BETTER TESTED IF THE GOVERNMENT HAD TO COMPENSATE LANDOWNERS FOR THEIR LOSSES THAT APPROACH ISN'T JUST OUR IDEA IT IS THE TAKINGS CLAUSE OF THE FIFTH AMENDMENT TO THE BILL OF RIGHTS 9404190040 940419 INTERNATIONAL BRIEF KIRIN BREWERY CO JAPANESE BEER MAKER TO SHIFT MORE PRODUCTION OVERSEAS KIRIN BREWERY CO A LEADING BEER MAKER IN JAPAN IS LOOKING TO EXPAND THE AMOUNT OF BEER IT HAS OVERSEAS PRODUCERS MAKE FOR IT UNDER CONSIGNMENT TO LESSEN THE DEBILITATING IMPACT OF THE YEN'S APPRECIATION A COMPANY SPOKESWOMAN SAID THE SPOKESWOMAN SAID THE PROPORTION OF PRODUCTION BY CONSIGNMENT IN KIRIN'S TOTAL OVERSEAS BEER SALES WILL BE RAISED TO 85 IN 1994 FROM 75 IN 1993 KIRIN CONSIGNS BEER PRODUCTION TO CANADA'S MOLSON COS UK'S CHARLES WELLS LTD AND HONG KONG'S SAN MIGUEL BREWERY LTD KIRIN WOULDN'T DISCLOSE ITS TOTAL VOLUME OF OVERSEAS BEER SALES FOR 1993 BUT THE SPOKESWOMAN SAID THE AMOUNT WAS LESS THAN 1 OF KIRIN'S BEER SALES IN THE DOMESTIC MARKET 9404190039 940419 BUSINESS BRIEF DERLAN INDUSTRIES LTD CANADIAN AEROSPACE DIVISION TO SUPPLY UPGRADE CONTRACT DERLAN INDUSTRIES LTD SAID ITS DERLAN AEROSPACE CANADA LTD UNIT HAS BEEN AWARDED A 51 MILLION CANADIAN DOLLAR US367 MILLION CONTRACT TO SUPPLY COMPONENT UPGRADE KITS TO BOEING HELICOPTER A UNIT OF BOEING CO DERLAN A TORONTOBASED SPECIALTY MANUFACTURING AND AEROSPACE CONCERN SAID IT WILL RETROFIT GEARS HOUSINGS AND ROTOR SHAFTS OF THE CH46 HELICOPTER AS PART OF THE ONGOING UPGRADING PROGRAM BY THE US NAVY AND MARINE CORPS THE 264 KITS ARE TO BE SUPPLIED DURING A 2 1/2YEAR PERIOD BEGINNING IN 1995 THE COMPANY SAID IT SEES THE POTENTIAL FOR SIGNIFICANT FOLLOWUP ORDERS 9404190038 940419 BUSINESS BRIEF OWENS & MINOR INC FIRSTPERIOD NET ROSE 49 AS SALES INCREASED BY 23 OWENS & MINOR INC SAID FIRSTQUARTER NET INCOME ROSE 49 ON A BIG JUMP IN SALES THE RICHMOND VA COMPANY IS A DISTRIBUTOR OF MEDICAL AND SURGICAL SUPPLIES AND OTHER PRODUCTS TO HOSPITALS IN THE LATEST PERIOD NET WAS 48 MILLION OR 23 CENTS A SHARE COMPARED WITH 45 MILLION OR 22 CENTS A SHARE A YEAR EARLIER SALES ROSE 23 TO 3908 MILLION FROM 3178 MILLION THE YEAREARLIER EARNINGS INCLUDED A ONETIME GAIN OF 706000 OR THREE CENTS A SHARE THE COMPANY SAID IT IS OFF TO A GOOD START IN 1994 DURING THE QUARTER IT ANNOUNCED THE SIGNING OF A MAJOR PRIMEVENDOR CONTRACT WITH COLUMBIA/HCA HEALTHCARE CORP LOUISVILLE KY WHICH IS SET TO BEGIN MAY 1 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE OWENS & MINOR CLOSED AT 21875 DOWN 125 CENTS 9404190036 940419 BUSINESS BRIEF CINCINNATI BELL INC PROFIT FELL 39 IN QUARTER UNIT GETS DUTCH CONTRACT CINCINNATI BELL INC SAID A SUBSIDIARY SIGNED A 47 MILLION CONTRACT WITH PTT ROYAL NEDERLAND NV'S PTT TELECOM NETHERLANDS TO PROVIDE AN INFORMATIONMANAGEMENT SYSTEM FOR A DIGITAL LEASEDLINE NETWORK THE TELECOMMUNICATIONS COMPANY ALSO ANNOUNCED LOWER FIRSTQUARTER EARNINGS NET INCOME WAS 127 MILLION OR 20 CENTS A SHARE DOWN 39 FROM 208 MILLION OR 32 CENTS A SHARE A YEAR EARLIER THE RECENT QUARTER INCLUDED A 29 MILLION CHARGE FOR POSTEMPLOYMENT BENEFITS THE YEAREARLIER QUARTER INCLUDED A 65 MILLION GAIN FROM THE SALE OF THE COMPANY'S RESIDENTIAL EQUIPMENT BUSINESS REVENUE FOR THE LATEST QUARTER WAS 292 MILLION UP 11 FROM 2625 MILLION CINCINNATI BELL'S STOCK ROSE 1 TO 17125 YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9404190035 940419 MARKETING BRIEF NOTED MAGAZINES INTERNATIONAL DATA GROUP'S PC WORLD MAGAZINE WILL COPUBLISH WITH CHILD MAGAZINE A QUARTERLY SUPPLEMENT TO BOTH MAGAZINES CALLED SMART COMPUTING FOR KIDS THE FIRST SECTION TOTALING 32 PAGES WILL APPEAR IN THE MAGAZINES' SEPTEMBER ISSUES CHILD PUBLISHED BY NEW YORK TIMES CO SAID THE SUPPLEMENT ULTIMATELY MAY BECOME AN INDEPENDENT MAGAZINE 9404190034 940419 INTERNATIONAL BRIEF CIBAGEIGY AG FIRSTQUARTER SALES DROPPED 2 STRONG CURRENCY CITED CIBAGEIGY AG SAID FIRSTQUARTER SALES FELL 2 TO 56 BILLION SWISS FRANCS 387 BILLION NEGATIVELY AFFECTED BY A STRONG SWISS FRANC SWITZERLAND'S LARGEST CHEMICALDRUGS COMPANY SAID THAT IN LOCAL CURRENCIES SALES WERE UP 3 BUT DOWN WHEN TRANSLATED INTO SWISS FRANCS BECAUSE OF THE WEAKENING OF THE US DOLLAR AND VARIOUS IMPORTANT EUROPEAN CURRENCIES THE HEALTHCARE SECTOR WAS THE BEST PERFORMER WITH A 4 INCREASE IN LOCALCURRENCY SALES AND A 1 DROP IN SWISSFRANC TERMS CIBA SAID PRESCRIPTIONDRUG SALES WERE FLAT SALES IN THE AGRICULTURAL SECTOR WERE DOWN 2 IN SWISS FRANCS AND UP 3 IN LOCAL CURRENCIES CIBA SAID GOOD PERFORMANCE IN THE US AND WESTERN EUROPEAN MARKETS COMPENSATED FOR SLUGGISH BUSINESS IN EASTERN EUROPE AND OTHER REGIONS 9404190033 940419 BUSINESS BRIEF ALEXANDER & ALEXANDER SERVICES INC FIRSTQUARTER LOSS IS SEEN AMID OVERHAUL OF BUSINESS ALEXANDER & ALEXANDER SERVICES INC SAID IT EXPECTS TO REPORT A LOSS OF 35 MILLION TO 4 MILLION OR ABOUT 15 CENTS A SHARE FOR THE FIRST QUARTER AS IT CONTINUES TO OVERHAUL OPERATIONS A SPOKESMAN SAID FIRSTQUARTER REVENUE WOULD BE LOWER THAN EXPECTED IN ITS NORTH AMERICAN RISKMANAGEMENT AND INSURANCESERVICES UNIT BECAUSE OF DISRUPTION CAUSED BY PERSONNEL REASSIGNMENTS AND CHANGES IN BUSINESS FOCUS THE NEW YORK INSURANCE BROKER ANTICIPATES A PROFIT FROM CONTINUING OPERATIONS FOR THE YEAR THE EXPECTED LOSS ALSO INCLUDES A CHARGE OF ABOUT SIX CENTS A SHARE RELATED TO A NEW ACCOUNTING STANDARD FOR RETIREE BENEFITS FOR THE YEARAGO PERIOD THE COMPANY HAD PROFIT OF 132 MILLION OR 30 CENTS A SHARE ON REVENUE OF 3248 MILLION 9404190032 940419 PEPPERAND SALT YET STILL HAVEN'T GOTTEN ANYWHERE JUST GETS BETTER PRESS TO MAKE YOUR WALLET THICKER PEN A BOOK CALLED GET RICH QUICKER 9404190031 940419 INTERNATIONAL BRIEF SUMITOMO METAL INDUSTRIES LTD CAPITAL SPENDING TO BE CUT 12 TO 111 BILLION FOR YEAR SUMITOMO METAL INDUSTRIES LTD ONE OF JAPAN'S LARGEST STEELMAKERS SAID IT INTENDS TO CUT CAPITAL INVESTMENT 12 IN THE FISCAL YEAR STARTED APRIL 1 TO 115 BILLION YEN 111 BILLION THE LARGEST PART OF THAT SPENDING IS 15 BILLION YEN TO BUILD A FACTORY IN THE WAKAYAMA PREFECTURE THAT WILL BEGIN PRODUCTION OF SEAMLESS PIPE BY MID1995 THE SPOKESMAN SAID IT IS TOO EARLY TO SAY WHEN THE COMPANY CAN RETURN TO PROFITABILITY BUT THE COMPANY SEES A RESTRUCTURING PLAN ANNOUNCED IN MARCH CONTRIBUTING 40 BILLION YEN TO PRETAX PROFIT IN FISCAL 1996 SUMITOMO METAL ESTIMATED IT HAD A PRETAX LOSS OF 34 BILLION YEN IN THE YEAR ENDED MARCH 31 9404190030 940419 REVIEW & OUTLOOK EDITORIAL ASIDES PROJECTS' HOPE PRESIDENT CLINTON THIS WEEKEND ANNOUNCED A PLAN TO ALLOW WARRANTLESS SEARCHES IN DRUG AND VIOLENCESATURATED PUBLIC HOUSING PROJECTS AS TO RIGHTS THE PRESIDENT SPOKE ELOQUENTLY TO THAT THEY INCLUDE THE RIGHT TO GO OUT TO THE PLAYGROUND THE RIGHT TO GO TO SCHOOL SAFELY IN THE MORNING AND THE RIGHT TO CELEBRATE YOUR 10TH BIRTHDAY WITHOUT COMING HOME TO BLOODSHED AND TERROR IT MAY BE HOPED THAT THE PRESIDENT'S JUDICIAL NOMINEES WILL SHARE THAT UNDERSTANDING OF RIGHTS IN A CIVIL SOCIETY 9404190029 940419 BUSINESS BRIEF FEDERAL HOME LOAN MORTGAGE CORP FIRSTQUARTER NET ROSE 15 ON REVENUE INCREASE OF 22 FEDERAL HOME LOAN MORTGAGE CORP OR FREDDIE MAC SAID FIRSTQUARTER NET INCOME JUMPED 15 TO 233 MILLION OR 120 A SHARE COMPARED WITH NET OF 202 MILLION OR 106 A SHARE A YEAR EARLIER THE GOVERNMENTSPONSORED CONCERN SAID REVENUE ROSE 22 TO 582 MILLION FROM 477 MILLION A YEAR EARLIER THE COMPANY TOOK A 28 MILLION CHARGE FOR AN ACCOUNTING CHANGE THE COMPANY'S PROFIT COMES PRIMARILY FROM FEES EARNED FROM BUYING MORTGAGES AND PACKAGING THEM AS SECURITIES AND INTEREST COLLECTED ON THE LOANS IT KEEPS AS INVESTMENT IN THE QUARTER FREDDIE MAC'S RETURN ON ITS RETAINED MORTGAGE PORTFOLIO INCREASED 49 TO 297 MILLION COMPARED WITH 200 MILLION A YEAR EARLIER YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FREDDIE MAC SHARES CLOSED AT 8325 DOWN 875 CENTS 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 9404190028 940405 REVIEW & OUTLOOK EDITORIAL FINANCIAL FOREBODING FINANCIAL MARKETS WENT ON ANOTHER WILD RIDE YESTERDAY IGNORING EASTER WEEKEND ASSURANCES BY WHITE HOUSE AIDES THAT INVESTORS HAD NOTHING TO FEAR BUT FEAR ITSELF MAYBE INVESTORS KNOW SOMETHING THAT THE PRESIDENT'S MEN STILL FEAR TO ADMIT MR CLINTON'S ADVISERS ARE RIGHT OF COURSE THAT THE ECONOMY REMAINS FUNDAMENTALLY SOUND AT LEAST FOR NOW AND THAT FINANCIAL MARKETS SOMETIMES OVERREACT MOREOVER IT'S NO SMALL ACHIEVEMENT THAT THE ECONOMY HAS BORNE UP WELL SO FAR UNDER THE CLINTON TAX INCREASE THE UNCERTAINTY OF NEW TAXES NEARLY STALLED THINGS IN EARLY 1993 BUT MR CLINTON WAS LUCKIER THAN GEORGE BUSH IN TIMING HIS TAX HIKE IN THE EARLY STAGES OF A RECOVERY THIS IS THE GOOD NEWS THE BAD NEWS IS THAT MARKETS TYPICALLY IMPLY MORE ABOUT THE FUTURE THAN THE PRESENT AND THUS A 10 MARKET PLUNGE IN A MATTER OF WEEKS IS SURELY A WARNING ESPECIALLY WHEN THE SELLOFF INCLUDES STOCKS OF ALL KINDS BONDS IN ALL YIELDS AND THE DOLLAR BESIDES OUR OWN VIEW IS THAT THESE MARKETS ARE SIGNALING THE LIMITS OF AN EXPANSION POWERED BY THE SINGLE ENGINE OF MONETARY POLICY THE FEDERAL RESERVE IN SHORT CAN'T RUN AN EASYMONEY POLICY FOREVER USUALLY AN ECONOMY HAS TWO POLICY LEVERS TO PULL MONETARY AND FISCAL BUT LIKE MR BUSH BEFORE HIM MR CLINTON HAS LOCKED IN THE FISCAL DRAG OF A TAX INCREASE THAT LEAVES MONETARY POLICY WHICH IS LIKE TRYING TO STEER A BOAT WITH A SINGLE OAR IT ALSO SETS THE STAGE FOR A NEARCERTAIN CONFRONTATION BETWEEN A WHITE HOUSE THAT WANTS EASY MONEY TO SPUR GROWTH FOR A 1996 ELECTION AND A FED THAT ALSO WORRIES ABOUT INFLATION MR BUSH SPENT THE TWO YEARS AFTER HIS TAX HIKE BEGGING THE FED TO CUT RATES FASTER WHILE MR CLINTON IS NOW SET UP TO SPEND THE REST OF HIS TERM BEGGING THE FED TO RAISE RATES MORE SLOWLY YESTERDAY HE REHEARSED FOR THIS KING CANUTE ROLE BY SAYING RATES ARE TOO HIGH SO FAR MR CLINTON HASN'T BROWBEAT THE FED MUCH OF COURSE BUT THIS MAY BE BECAUSE THE FED ITSELF HAS BEEN SLOW TO ACT BEFORE IT TIGHTENED EARLIER THIS YEAR THE FED HAD KEPT SHORTTERM INTEREST RATES AT 3 FOR TWO YEARS THIS EASYMONEY POLICY STIMULATED GROWTH DESPITE THE DOUBLE FISCAL CRUNCH OF THE BUSH AND THEN CLINTON TAX INCREASES BUT WITH THE APPEARANCE ALREADY OF SUCH INFLATION HARBINGERS AS A RISING PRICE OF GOLD AND A WEAK DOLLAR WE SUGGESTED LAST SPRING THAT THE FED SIGNAL ITS INFLATIONFIGHTING RESOLVE BY SNUGGING RATES UP INSTEAD ALAN GREENSPAN WAITED ANOTHER NINE MONTHS AND THE MARKETS MAY NOW BE SAYING HE AND THE FED MOVED TOO LITTLE TOO LATE CERTAINLY INVESTORS IN LONGTERM BONDS SEEM TO THINK SO THEY'VE BID UP THE PRICES ON 30YEAR BONDS THE INSTRUMENTS MOST SENSITIVE TO INFLATIONARY EXPECTATIONS BY MORE THAN 150 BASIS POINTS SINCE JUST LAST OCTOBER YESTERDAY THE LONG BOND CLOSED AT 742 WHICH IS ABOVE WHERE IT WAS AT MR CLINTON'S INAUGURATION WHEN BOND RATES WERE FALLING LAST YEAR WHITE HOUSE OFFICIALS TOOK CREDIT AND POINTED TO THEIR DEFICIT REDUCTION AKA TAX INCREASE PLAN NOW THAT RATES ARE GOING BACK UP THE SAME OFFICIALS ARE SCRATCHING THEIR HEADS OR SAYING IT DOESN'T MATTER PERHAPS THIS IS BECAUSE THEIR DEFICIT REDUCTION HAS SLOWED TO NOTHING NOW THAT IT REQUIRES SPENDING CUTS AND NOT MAINLY TAXES A NEW CENSUS BUREAU STUDY REPORTS THAT FEDERAL SPENDING LAST YEAR ROSE TO 4599 OR BY 200 FOR EVERY MAN WOMAN AND CHILD IN THE US AND WHEN THE SENATE REPUBLICANS AND DEMOCRATS BOTH RECENTLY VOTED TO ADD ANOTHER 26 BILLION IN SPENDING CUTS TO THE FISCAL YEAR 1995 BUDGET THE WHITE HOUSE OPPOSED IT MARKETS SURELY UNDERSTAND THAT FEDERAL SPENDING IS GOING UP NOT DOWN THEY ALSO UNDERSTAND US TRADE POLICY ESPECIALLY THE CLINTON TREASURY'S NOTSOSECRET STRONG YEN POLICY IF FOREIGN INVESTORS EXPECT THE DOLLAR TO FALL THEY AREN'T LIKELY TO BUY DOLLARS OR INVEST IN DOLLARDENOMINATED BONDS THIS KEEPS INTEREST RATES HIGHER THAN THEY OTHERWISE WOULD BE SO PERHAPS HOMEBUYERS AND OTHERS SHOULD REFER TO THE MICKEY KANTOR PREMIUM IT ALSO PUNISHES JAPAN'S EXPORT INDUSTRIES WHICH SEEMS TO BE THE IDEA BUT HAS THE NASTY SIDE EFFECT OF KEEPING JAPAN'S ECONOMY FROM RECOVERING ITSELF THE BOTTOM LINE IS THAT THERE IS PLENTY FOR MARKETS TO WORRY ABOUT CONCERNING THE FUTURE DESPITE THE ECONOMY'S STRONG PERFORMANCE IN LATE 1993 AND EARLY 1994 THE TEST OF ANY POLICY ISN'T A SINGLE YEAR BUT HOW IT FARES IN THE LONG RUN IN EARLY 1978 EVEN JIMMY CARTER'S ECONOMIC POLICY HAD THE LOOK OF A SUCCESS SEE RELATED LETTER LETTERS TO THE EDITOR IT'S SINKING IN WSJ APRIL 19 1994 9404050107 YY94 MM04 9404190027 940419 US AND UN WEIGH STRATEGY AGAINST SERBS MUCH TOUGHER ULTIMATUMS ARE POSSIBLE IN EFFORT TO DEFEND SAFE AREAS BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON STUNG BY CHARGES THAT THEY ABANDONED GORAZDE TO BESIEGING SERB FORCES US AND UNITED NATIONS OFFICIALS AGAIN RAISED THE PROSPECT OF MOREFORCEFUL MILITARY ACTION TO DEFEND THE FEW REMAINING MUSLIM SAFE AREAS IN BOSNIA PRESIDENT CLINTON WILL MEET WITH HIS TOP FOREIGNPOLICY ADVISERS THIS MORNING TO DISCUSS THIS MOST RECENT ITERATION OF US STRATEGY IN BOSNIA BUT SENIOR OFFICIALS SAID THEIR IDEA IS TO ISSUE AN ULTIMATUM TO BOSNIAN SERBS TO AT LEAST CEASE THEIR ATTACKS ON THE FIVE UNPROTECTED ENCLAVES OR FACE AIR STRIKES FROM THE NORTH ATLANTIC TREATY ORGANIZATION DEFENSE SECRETARY WILLIAM PERRY SAID LAST NIGHT THAT THE ADMINISTRATION IS RECONSIDERING ITS ENTIRE APPROACH TO THE BOSNIAN WAR AND AMONG OTHER THINGS IS CONTEMPLATING BROADER MILITARY ACTION VIGOROUS ACTION WILL COME OUT OF THIS HE TOLD REPORTERS ACCOMPANYING HIM ABOARD HIS AIRCRAFT ON A BRIEF TRIP TO SOUTH KOREA AND JAPAN THERE WILL BE A SET OF NEW ACTIONS NO QUESTION ABOUT THAT IN RESPONSE TO WHAT HE CALLED VERY GRIM BEHAVIOR BY THE SERBS MR PERRY SAID A VERY WIDE RANGE OF DIPLOMATIC AND MILITARY OPTIONS IS BEING CONSIDERED SPECIFICALLY INCLUDING LIFTING THE ARMS EMBARGO ON THE BOSNIAN MUSLIMS LAST NIGHT UN SECRETARY GENERAL BOUTROS BOUTROSGHALI SIGNALED HIS SUPPORT FOR SUCH A POLICY CHANGE SAYING HE HAD ASKED NATO TO GIVE HIM THE AUTHORITY TO CALL IN AIR STRIKES TO DEFEND ALL THE UN SAFE AREAS BUT WHETHER ANYTHING CAN RESCUE GORAZDE WHERE THE SERBS HAVE SEIZED ALL BUT THE CENTER OF TOWN IS FAR FROM CLEAR IT ALSO ISN'T CLEAR HOW AMBITIOUS THE NATO ULTIMATUM WILL BE DEMANDING THAT THE SERBS SIMPLY HALT THEIR ATTACKS OR GO FURTHER AND GIVE UP WEAPONS OR TERRITORY THE BOSNIAN SERBS GAVE IN TO A JOINT UNNATO ULTIMATUM FOR SARAJEVO IN FEBRUARY WITHOUT THE LAUNCHING OF ANY AIR STRIKES NATO'S SHOW OF RESOLVE AROUND SARAJEVO ALSO JUMPSTARTED PEACE NEGOTIATIONS WHICH LATER DIED AFTER THE ATTACKS ON GORAZDE US OFFICIALS ARE CLEARLY HOPING THAT A NEW ROUND OF ULTIMATUMS WILL RESURRECT PEACE TALKS AS WELL AS DETER THE SERBS FROM BUILDING ON THEIR SUCCESS IN GORAZDE AND TURNING THEIR GUNS ON OTHER ENCLAVES BUT IT MAY NOT BE SO EASY NEXT TIME WHAT LITTLE CREDIBILITY THE WEST HAD WITH THE SERBS HAS BEEN BADLY DAMAGED BY ITS FLACCID AND ULTIMATELY FAILED ATTEMPTS TO DEFEND GORAZDE DURING THE PAST WEEK US OFFICIALS HOWEVER INSISTED THAT GORAZDE WHERE NATO EFFORTS WERE FORMALLY LIMITED TO PROTECTING UN PEACEKEEPERS AND NOT THE ENCLAVE OR ITS RESIDENTS WOULD BE THE EXCEPTION AND NOT THE RULE AND WHILE NO ONE IS TALKING ABOUT LAUNCHING UNILATERAL AIR STRIKES ON BOSNIAN SERB HEADQUARTERS OR ON SERBIA ITSELF THE ULTIMATUMS WOULD GIVE A BROADER RANGE OF TARGETS THAN IN GORAZDE TO BACK UP THEIR THREAT THE US WILL FIRST HAVE TO PERSUADE OTHER NATO ALLIES TO ACCEPT THAT MUCH BROADER TASK US OFFICIALS ARE HOPING THAT THE EUROPEANS ARE FEELING THE SAME POLITICAL HEAT IN THE WAKE OF THE DEBACLE IN GORAZDE WHERE PINPRICK AIR STRIKES FAILED TO HALT THE SERBIAN ONSLAUGHT BUT WITH THE SERBS STILL HOLDING 150 UN PEACEKEEPERS HOSTAGE EUROPEAN LEADERS WILL HAVE TO WEIGH CAREFULLY THE COST OF ANGERING THE SERBS FURTHER US OFFICIALS WERE CLEARLY PLEASED BY MR BOUTROSGHALI'S ENDORSEMENT AND THEY WERE PARTICULARLY HEARTENED BY TOUGH WORDS COMING OUT OF MOSCOW EARLY YESTERDAY WHERE RUSSIAN BOSNIA NEGOTIATOR VITALY CHURKIN BLISTERED THE SERBS FOR LYING TO HIM REPEATEDLY AND SAID THAT RUSSIA COULDN'T AFFORD TO SUPPORT A GROUP OF BOSNIAN SERB EXTREMISTS WHO HAVE FALLEN ILL WITH THE MADNESS OF WAR LAST NIGHT HOWEVER YULI VORONTSOV RUSSIA'S UN REPRESENTATIVE WARNED THAT MORE AIR STRIKES COULD LEAD TO DISASTER THE BREADTH OF THE NATO ULTIMATUM ALSO COULD BE THE SUBJECT OF CONSIDERABLE DEBATE AMONG THE ALLIES IN SARAJEVO FOR EXAMPLE NATO DEMANDED THAT THE SERBS NOT ONLY CEASE THEIR SHELLING BUT ALSO WITHDRAW OR ABANDON ALL THEIR HEAVY WEAPONS WITHIN A 12MILE EXCLUSION ZONE A FAR LESS AMBITIOUS ULTIMATUM WOULD SIMPLY DEMAND THAT THE SERBS CEASE SHELLING THE ENCLAVES WHILE GIVING UP NEITHER TERRITORY NOR WEAPONRY ONE US OFFICIAL SAID LAST NIGHT THAT THE ULTIMATUMS COULD VARY CONSIDERABLY FROM SAFE AREA TO SAFE AREA DEPENDING ON THE SITUATION ON THE GROUND SERB MOTIVATION GEOGRAPHY AND NATO'S WILL FOR THE THREATS TO WORK THE UN WILL ALSO HAVE TO COME UP WITH MORE PEACEKEEPERS TO MONITOR COMPLIANCE THE LACK OF MORE TROOPS HAS BEEN REPEATEDLY CITED BY THE CLINTON ADMINISTRATION AS THE PRIMARY REASON FOR NOT EXTENDING THE SARAJEVO ULTIMATUM TO OTHER AREAS AND DESPITE EUROPEAN CALLS FOR US PEACEKEEPERS PRESIDENT CLINTON HAS SAID THAT NO US TROOPS WOULD BE SENT UNTIL A PEACE AGREEMENT HAS BEEN SIGNED WHILE ACKNOWLEDGING THESE DIFFICULTIES A SENIOR US OFFICIAL SAID THAT THE SERBS BLATANT DEFIANCE OF THE UN AND NATO IN GORAZDE HAD CHANGED THE DYNAMICS CONSIDERABLY IN EUROPE IN RUSSIA AND MOST OF ALL IN WASHINGTON ANOTHER TOP US OFFICIAL URGED A REPORTER NOT TO COUNT THE US OUT OF BOSNIA WE'RE READY TO DO WHAT'S NECESSARY TO GET THE NEGOTIATIONS STARTED AGAIN WHETHER THOSE NEGOTIATIONS CAN NOW BE REVIVED AND WHETHER THEY ULTIMATELY PRODUCE A WORKABLE PEACE MAY WELL DEPEND ON WHETHER THE WEST WILL NOW BACK UP ITS THREATS WITH REAL FORCE THOMAS E RICKS CONTRIBUTED TO THIS ARTICLE 9404190026 940419 BUSINESS BRIEF AUR RESOURCES INC STOCK FALLS 29 AS FIRM CUTS ESTIMATE OF MINERAL RESERVES AUR RESOURCES INC REDUCED ITS ESTIMATE OF MINERAL RESERVES AT THE LOUVICOURT DEPOSIT NEAR VAL D'OR QUEBEC SENDING THE COMPANY'S STOCK FALLING 29 AUR SAID IT NOW ESTIMATES PRELIMINARY GEOLOGICAL RESERVES OF 157 MILLION METRIC TONS COMPARED WITH AN EARLIER ESTIMATE OF 265 MILLION TONS THE DEPOSIT CONTAINS LARGE AMOUNTS OF COPPER AND ZINC AND SOME GOLD AND SILVER THE TORONTO COMPANY SAID THE LATEST ESTIMATE IS THE RESULT OF MORE DETAILED DRILLING WHICH ALSO DISCOVERED AN UNFAVORABLE GEOLOGICAL STRUCTURE IN PART OF THE DEPOSIT PRODUCTION AT THE MINE IS STILL SCHEDULED TO BEGIN IN OCTOBER BUT THE NEW ESTIMATE HAS REDUCED THE MINE'S EXPECTED LIFE TO 12 YEARS FROM 17 YEARS SAID HOWARD STOCKFORD EXECUTIVE VICE PRESIDENT SHARES OF AUR YESTERDAY SANK 175 CANADIAN DOLLARS US126 TO C425 ON THE TORONTO STOCK EXCHANGE AUR OWNS 30 OF THE LOUVICOURT DEPOSIT TECK CORP OF VANCOUVER OWNS 25 AND A TORONTOBASED UNIT OF NORANDA INC OWNS 45 9404190025 940419 LETTERS TO THE EDITOR IT'S SINKING IN YOUR APRIL 5 EDITORIAL FINANCIAL FOREBODING AND PAUL GIGOT'S APRIL 8 POTOMAC WATCH REMINDED ME OF A HARD LESSON LEARNED DURING MY SEVEN YEARS IN THE WHITE HOUSE ANY ORIGINAL THOUGHT HAS TO BE REPEATED AT LEAST TWICE AS MANY TIMES AS THE ORIGINATOR CAN STOMACH IT BEFORE IT PENETRATES THE PUBLIC CONSCIOUSNESS WITH THE PERSPECTIVE THAT SOME DISTANCE FROM THE NEW YORKWASHINGTON AXIS PROVIDES I THINK THE MARKET PLAYERS ARE JUST BEGINNING TO UNDERSTAND IN LARGE NUMBERS THAT THERE IS NO CLINTON DEFICITREDUCTION PROGRAM IT HAS TAKEN THEM A LONG TIME TO APPRECIATE THE IMPLICATIONS OF TWO POINTS YOUR EDITORIAL PAGE HAS MADE CLEAR FOR MONTHS THAT FEDERAL REVENUES CANNOT BE INCREASED ON A SUSTAINABLE BASIS BY RAISING THE MARGINAL TAX RATE AND THAT NONE OF THE CLINTON NONDEFENSE SPENDING CUTS TAKE EFFECT UNTIL AFTER THE 1996 ELECTIONS 9404190024 940419 LETTERS TO THE EDITOR NO DOUBT ABOUT IT AIR BAGS SAVE LIVES IN YOUR MARCH 17 ARTICLE SAFETY QUIZ INSURANCE CLAIMS DATA DON'T SHOW ADVANTAGE OF SOME AUTO DEVICES YOU SUBSTANTIALLY MISINTERPRET THE FINDING FROM TWO STUDIES FROM THE HIGHWAY LOSS DATA INSTITUTE ON AIR BAGS AND ANTILOCK BRAKES YOU STATE BUT SO FAR THERE IS NO DEMONSTRABLE PAYOFF IN TERMS OF FEWER ACCIDENTS AND INJURIES AND LOWER REPAIR BILLS THE STATISTICS AREN'T THERE AND NO ONE IS SURE WHY IN DIRECT CONTRADICTION IS THE NEXT SENTENCE THAT AIR BAGS SAVE LIVES IN COLLISIONS IS UNDISPUTED HOW YOU CAN JUXTAPOSE THESE TWO STATEMENTS IS A PUZZLE YOU SAY WHAT IS UNCLEAR IS HOW MUCH PROTECTION AIR BAGS OFFER FROM INJURIES SHORT OF DEATH YET WE HAVE PROVIDED YOU WITH STUDIES THAT ANSWER THIS QUESTION AIR BAGS ARE REDUCING THE SEVERITY OF INJURIES REPORTED TO INSURERS THEY ARE ALSO REDUCING THE FREQUENCY WITH WHICH PEOPLE NEED TO BE HOSPITALIZED IN ADDITION THE US DEPARTMENT OF TRANSPORTATION'S STUDY OF AIRBAG EFFECTIVENESS CONCLUDED THAT AIR BAGS ALONE ARE ESTIMATED TO BE 42 EFFECTIVE IN REDUCING MODERATETOCRITICAL INJURY AIR BAGS PLUS MANUAL LAP/SHOULDER BELTS ARE ESTIMATED TO REDUCE THIS RISK BY 68 WHY DID YOU IGNORE THESE STATISTICS SHOWING A DEMONSTRABLE PAYOFF FOR AIR BAGS INSTEAD OF CITING THESE FINDINGS YOU CHOSE TO FOCUS ONLY ON RESULTS MEASURING THE FREQUENCY OF ALL INJURY CLAIMS IN CARS WITH AND WITHOUT AIR BAGS EVEN THOUGH THESE AIR BAGS DEPLOY ONLY IN RELATIVELY SERIOUS COLLISIONS AIR BAGS ARE NOT DESIGNED TO PREVENT MINOR INJURIES THEY ARE DESIGNED TO PREVENT SERIOUS INJURIES AND DEATHS AND THE EVIDENCE IS NOW CLEAR THAT THEY ARE DOING JUST THAT UNFORTUNATELY SOME ECONOMISTS APPARENTLY ARE INTENT ON REVIVING THE TOTALLY DISCREDITED NOTION THAT PEOPLE TAKE MORE RISKS WHEN CARS ARE MADE SAFER IGNORING THE OVERWHELMING EVIDENCE THAT SAFETY FEATURES SUCH AS AIR BAGS WHICH ARE MANDATED BY FEDERAL STANDARDS ARE SAVING THOUSANDS OF LIVES EACH YEAR YOU CITE AN INCOMPETENT STUDY BY PETERSON AND HOFFER TWO ECONOMISTS AT VIRGINIA COMMONWEALTH UNIVERSITY THE PURPORTED FINDINGS OF THEIR STUDY ARE WRONG BECAUSE THEY WERE DERIVED USING INVALID ARITHMETIC THE STUDY CLAIMS TO HAVE FOUND THAT THE RELATIVE FREQUENCY OF PERSONAL INJURY CLAIMS INCREASED IN CARS AFTER AIR BAGS BECAME STANDARD EQUIPMENT BUT THIS SOCALLED FINDING IS WRONG A CORRECT ANALYSIS OF THE DATA SHOWS THERE WAS NO SUCH INCREASE SO THERE'S NO BASIS AT ALL FOR THE SPECULATIVE HYPOTHESIS THAT A PURPORTED INCREASE IS DUE TO HIGHRISK INDIVIDUALS CHOOSING TO BUY AIRBAGEQUIPPED CARS TURNING TO THE EVALUATION OF THE INSURANCECLAIMS EXPERIENCE OF CARS WITH AND WITHOUT ANTILOCK BRAKES THE STUDY YOU ADDRESSED INCLUDED RESULTS FROM 19 PAIRS OF VEHICLE TYPES EACH WITH AND WITHOUT ANTILOCK BRAKES THE STUDY FOUND NO CHANGE IN THE FREQUENCY OF INSURANCE CLAIMS FOR DAMAGE TO CARS EQUIPPED WITH ANTILOCK BRAKES COMPARED WITH OTHERWISE SIMILAR CARS WITHOUT SUCH BRAKES WHILE THESE RESULTS MAY BE DISAPPOINTING THEY SHOULD NOT BE TOTALLY SURPRISING TO ANYONE FAMILIAR WITH ANTILOCK TECHNOLOGY ANTILOCK BRAKES CAN BE VERY EFFECTIVE IN HELPING DRIVERS MAINTAIN CONTROL IN EMERGENCY BRAKING SITUATIONS ON VERY SLIPPERY SURFACES IN CIRCUMSTANCES IN WHICH A VEHICLE WITH REGULAR BRAKES MAY SKID OUT OF CONTROL ANTILOCKS CAN HELP PREVENT THE SKID AND ALSO ALLOW THE DRIVER TO STEER TO AVOID A POSSIBLE COLLISION THESE CIRCUMSTANCES HOWEVER ARE RELATIVELY RARE FOR THE AVERAGE MOTORIST READERS SHOULD ASK THEMSELVES WHEN WAS THE LAST TIME THEY WERE IN AN OUTOFCONTROL SKID BECAUSE THIS IS THE CIRCUMSTANCE IN WHICH ANTILOCK BRAKES MAY HELP PREVENT CRASHES DESPITE MUCH PROMOTION AND ADVERTISING THAT LEADS THE PUBLIC TO BELIEVE OTHERWISE ANTILOCK BRAKES DO NOT OFFER SUBSTANTIALLY IMPROVED STOPPING DISTANCES ON MOST ROAD SURFACES ONLY ON VERY SLIPPERY SURFACES ARE THERE PRONOUNCED IMPROVEMENTS IN STOPPING DISTANCES FOR CARS WITH ANTILOCK BRAKES AND ON SOME SURFACES SUCH AS GRAVEL OR LOOSELY PACKED SNOW ANTILOCKS CAN ACTUALLY INCREASE STOPPING DISTANCES BECAUSE ANTILOCK BRAKES HAVE BEEN PROMOTED AS SOME KIND OF WONDER BRAKE THAT WILL ENABLE MOTORISTS TO STOP ON A DIME AND THUS AVOID COLLISIONS EXPECTATIONS FOR THEM HAVE BEEN UNREALISTIC THE ARTICLE RESURRECTS THE DISCREDITED THEORY THAT IF YOU MAKE CARS SAFER PEOPLE WILL ADJUST THEIR BEHAVIOR TO OFFSET THE INCREASED SAFETY YOU REFER TO A 1975 STUDY BY PELTZMAN AND REPORT HIS CLAIM THAT RISKTAKING BEHAVIOR COMPLETELY OFFSET THE LIFESAVING EFFECTS OF MANDATED SAFETY EQUIPMENT THAT CONCLUSION HAS BEEN SHOWN OVER AND OVER AGAIN TO BE WRONG THERE IS OVERWHELMING EVIDENCE IN THE SCIENTIFIC LITERATURE THAT SAFETY FEATURES MANDATED BY FEDERAL MOTOR VEHICLE SAFETY STANDARDS AND FEATURES NOW INCREASINGLY BEING OFFERED IN RESPONSE TO MARKET PRESSURE HAVE SUBSTANTIALLY REDUCED THE NUMBERS OF DEATHS AND SERIOUS INJURIES OCCURRING IN MOTORVEHICLE CRASHES WHILE IT MAY INDEED BE THE CASE THAT IF YOU PROVIDE A DRIVER WITH DIFFERENT ACCELERATION CAPABILITIES BETTER LIGHTING OR BETTER BRAKES BEHAVIOR MAY CHANGE BECAUSE OF THE DIRECT AND IMMEDIATE FEEDBACK PROVIDED BY THE VEHICLE BUT THE NOTION THAT DRIVERS CHOOSE TO TAKE MORE RISKS BECAUSE OF ENERGYABSORBING STEERING COLUMNS HIGHPENETRATIONRESISTANT LAMINATED WINDSHIELDS AIR BAGS OR OTHER INJURYREDUCING FEATURES MANDATED BY THE FEDERAL STANDARDS IS PREPOSTEROUS 9404190023 940408 POTOMAC WATCH SUPREME ECHO WHEN HARRY MET GEORGE BY PAUL A GIGOT TO UNDERSTAND WHY PRESIDENT CLINTON LIKES THE IDEA OF PUTTING GEORGE MITCHELL ON THE SUPREME COURT IT HELPS TO TALK TO BOTH SIDES OF THE REPUBLICAN SENATE THAT IS TO BOTH SENATORS AND STAFF THE MEMBERS WHO PRIZE SENATORIAL COURTESY EXPECT THAT THE DEMOCRATIC LEADER WOULD FLY THROUGH SENATE CONFIRMATION EVEN ORRIN HATCH THE UTAH CONSERVATIVE PREDICTS A BREEZY PATH WHICH MAKES THE STAFF MORE ALERT TO PHILOSOPHY THAN COURTESY DECIDEDLY GLUM A DISASTER SAYS ONE RANKING GOP AIDE HE'S A RESULTSORIENTED LIBERAL POLITICIAN WHO IS USED TO GETTING HIS WAY ADDS ANOTHER IN FRUSTRATION WE COULDN'T LAY A GLOVE ON HIM MR MITCHELL THESE STAFFERS ASSUME IS PROBABLY THE MOST LIBERAL CHOICE MR CLINTON COULD MAKE WITHOUT PICKING A BLOODY CONFIRMATION FIGHT HE'S THUS A LOGICAL CHOICE FOR A PRESIDENT WHO WANTS BOTH TO MOLLIFY HIS PARTY'S CONSTITUENCIES AND AVOID TOO MUCH CONTROVERSY THAT'S WHY I SUSPECT MR MITCHELL ALREADY KNEW HE WAS AT THE TOP OF MR CLINTON'S SUPREME COURT LIST WHEN HE ANNOUNCED HIS SURPRISING SENATE RETIREMENT LAST MONTH JUSTICE HARRY BLACKMUN TOLD MR CLINTON OF HIS DESIRE TO RETIRE LAST JANUARY PROBABLY ON RENAISSANCE WEEKEND SO WE KNOW MR CLINTON WAS ARMED WITH THAT KNOWLEDGE WHEN HE HAD DINNER WITH MR MITCHELL THE NIGHT BEFORE HE ANNOUNCED HIS RETIREMENT THE SENATOR AND FORMER TRIAL JUDGE SAID SHORTLY THEREAFTER THAT HE'D LIKE THE COURT JOB AND THIS WEEK WE LEARNED THAT LLOYD CUTLER THE WHITE HOUSE COUNSEL HAS BEEN MULLING A MITCHELL NOMINATION LONG ENOUGH TO HAVE FARMED OUT RESEARCH ON THE CONSTITUTION'S EMOLUMENTS CLAUSE THAT'S NOT A WHITEWATER DETAIL IT'S THE CLAUSE HONORED TYPICALLY IN THE BREACH THAT BARS SOMEONE FROM TAKING A JOB FOR WHICH HE HAS VOTED A RAISE IN PAY MR CLINTON MUST WANT MR MITCHELL BADLY EVEN IF HIS NOMINATION WOULD LIFT HIM OUT OF THE SENATE'S HEALTH CARE MUD WRANGLING WHICH IT PROBABLY WOULDN'T IN ANY CASE MR MITCHELL IS ALREADY A LAME DUCK OF SORTS AND HE HAS SAID HIMSELF HE COULD DELAY HIS SENATE DEPARTURE UNTIL OCTOBER BEYOND SUCH TACTICS A MITCHELL CHOICE WOULD CERTAINLY HELP REVEAL MR CLINTON'S JUDICIAL PHILOSOPHY IN RECENT YEARS THE ARGUMENT OVER JUDGES HAS POLARIZED BETWEEN LIBERAL ACTIVISM AND CONSERVATIVE RESTRAINT BUT NOT TOO LONG AGO THERE WAS A THIRD SCHOOL LIBERALS WHO BELIEVED IN JUDICIAL RESTRAINT FELIX FRANKFURTER STOOD FOR THIS PRINCIPLE ON THE SUPREME COURT WHILE ALEXANDER BICKEL KEPT THE FLAME AT YALE LAW AS ARCHIBALD COX DID AT HARVARD OPTIMISTS THOUGHT MR CLINTON MIGHT TRY TO RESURRECT THAT THIRD SCHOOL AS A NEW DEMOCRAT AND THERE ARE SOME GOOD CANDIDATES AROUND TO HELP DO IT APPELLATE JUDGE STEPHEN BREYER IS PROBABLY THE MOST DISTINGUISHED LEGAL CHOICE WITH FRANKFURTER INCLINATIONS JUDGE JOSE CABRANES WHO SEEMS TO GET MENTIONED ONLY FOR THE COLOR OF HIS SURNAME WOULD PLEASE CENTRISTS TOO WHILE BOTH ARE LIBERALS THEY ARE ALSO RESTRAINED ENOUGH AS JUDGES TO SHRINK FROM PURSUING A WARREN COURTSTYLE POLITICAL AGENDA ON THE BENCH YET MR CLINTON SEEMS TO WANT MR MITCHELL PRECISELY BECAUSE HE IS IN THE EARL WARREN MOLD A POLITICIAN INSTEAD OF A JUDGE THAT SAME IMPULSE DREW HIM TO MERCURIAL MARIO CUOMO LAST YEAR UNTIL THE NEW YORK GOVERNOR TOOK HIMSELF OUT OF THE RUNNING AND MR CLINTON SHOWED THE SAME YEARNING THIS WEEK IN HIS REMARKABLE PAEAN TO JUSTICE BLACKMUN THE MOST POLITICALLY POLARIZING JUSTICE OF THIS CENTURY IT'S NATURAL TO PRAISE A RETIRING JUSTICE BUT MR CLINTON WENT ON AND ON CITING NOT JUST HIS SERVICE BUT A LAUNDRY LIST OF HIS CASE OUTCOMES HIS RESULTS NOT HIS REASONING HE EVEN CITED MR BLACKMUN'S SELFIMPORTANT CRY THAT WHAT IS REQUIRED OF US IS MORAL AMBITION BUT MORAL AMBITION IN A JUDGE CAN EASILY BECOME MORAL EXHIBITIONISM AND LEGISLATING FROM THE BENCH SEE ARCHIBALD COX'S THE COURT AND THE CONSTITUTION FOR A LIBERAL DISSECTION OF MR BLACKMUN'S ROE V WADE LOGIC IN GEORGE MITCHELL MR CLINTON MUST ASSUME HE'D GET ANOTHER HARRY BLACKMUN BUT WITH A MORE CONGENIAL PERSONALITY AND A HIGHER IQ CERTAINLY HE'D GET AS LOYAL A LIBERAL IN 1993 MR MITCHELL HAD A HIGHER PRESIDENTIAL SUPPORT SCORE 94 THAN ANY OF THE SENATORS WHO MIGHT RUN TO SUCCEED HIM AS DEMOCRATIC LEADER IN 1992 THE NATIONAL JOURNAL REPORTS HE VOTED LIBERAL 89 OF THE TIME ON SOCIAL ISSUES HE HAD ZERO CONSERVATIVE VOTES AND THE ACLU HOME OF THE RIGHTS LIBERALISM THAT NEW DEMOCRATS AREN'T SUPPOSED TO FAVOR GAVE HIM A RATING OF 95 MR MITCHELL MIGHT BE LESS RIGID ON THE BENCH ALTHOUGH IN THE SENATE HE WAS NOT SO FORGIVING OF CONSERVATIVE SUPREME COURT NOMINEES HE VOTED AGAINST BOTH CLARENCE THOMAS AND ROBERT BORK AS NEARLY ALL DEMOCRATS DID BUT HE EVEN OPPOSED WILLIAM REHNQUIST'S ELEVATION TO CHIEF JUSTICE IN 1986 IN THE REHNQUIST ERA SOME CONSERVATIVES HAVE ASSUMED THAT THE SUPREME COURT IS LESS CRITICAL THAN CONGRESS BUT MANY LIBERALS WHO WORK FOR BILL CLINTON ARE NOSTALGIC FOR THE WARREN ERA WHEN COURTS HELPED THEM ACCOMPLISH WHAT CONGRESS WOULDN'T MR CLINTON THE CHILD OF THE WARREN '60S MAY WANT HIS OWN LEGACY TO INCLUDE A SUCCESSOR TO THE REHNQUIST COURT MR REHNQUIST TURNS 70 IN OCTOBER CALLED THE MITCHELL COURT SEE RELATED LETTER LETTERS TO THE EDITOR IT'S SINKING IN WSJ APRIL 19 1994 9404080085 YY94 MM04 9404190022 940419 CACI RECEIVES NAVY CONTRACT ARLINGTON VA CACI INTERNATIONAL INC SAID IT RECEIVED A ONEYEAR CONTRACT INCLUDING FOUR ONEYEAR OPTIONS WITH A TOTAL VALUE OF 479 MILLION TO SUPPORT A US DEPARTMENT OF DEFENSE LOGISTICS PROGRAM CACI AN INFORMATION TECHNOLOGY AND SERVICES CONCERN SAID IT WOULD HELP THE US NAVY IMPLEMENT SPAREPART SUPPLY AND OTHER LOGISTICS PROGRAMS A CACI SPOKESMAN SAID THE NEW AGREEMENT FOLLOWS A PREVIOUS FIVEYEAR 40MILLION CONTRACT FOR LOGISTICS SUPPORT WITH THE NAVY THAT EXPIRES IN MAY 9404190021 940419 INTERNATIONAL THREE BANKS ENTER BIDDING COMPETITION FOR SPAIN'S BANESTO MADRID THREE SPANISH BANKS OFFICIALLY ENTERED THE BIDDING CONTEST FOR BANCO ESPANOL DE CREDITO THE COMMERCIAL BANK SEIZED BY REGULATORS IN DECEMBER ALL THREE BANCO BILBAO VIZCAYA SA BANCO SANTANDER SA AND ARGENTARIACORP BANCARIA DE ESPANA HAD BEEN EXPECTED TO BE CONTENDERS BUT TWO OTHERS THAT HAD INDICATED AN INTEREST BANCO CENTRAL HISPANO AND BANCO POPULAR ESPANOL STAYED OUT OF THE RACE FOR BANESTO AS THE BANK IS KNOWN WITH 2300 BRANCHES ACROSS SPAIN BANESTO IS POTENTIALLY A VALUABLE PRIZE IT WAS PUT UP FOR SALE EARLIER THIS YEAR AFTER THE DISCOVERY OF A 600 BILLIONPESETA 43 BILLION FINANCIAL SHORTFALL PROMPTED THE BANK OF SPAIN TO DISMISS ITS FORMER CHAIRMAN MARIO CONDE AND HIS ENTIRE BOARD UNTIL RECENTLY ARGENTARIA THE STATECONTROLLED CONGLOMERATE THAT ALREADY OWNS A MORTGAGE BANK AND A SPECIALIZED CORPORATE BANK WAS EXPECTED TO PULL OUT ALL STOPS TO GAIN BANESTO AS PART OF A STRATEGY TO EXPAND IN RETAIL BANKING BUT WITH ALLEGATIONS OF IMPROPER FINANCIAL DEALINGS BY THE FORMER GOVERNOR OF THE BANK OF SPAIN NOW DOGGING PRIME MINISTER FELIPE GONZALEZ'S GOVERNMENT DOUBTS ARE BEING VOICED AS TO HOW MUCH ARGENTARIA WILL BE IN A POSITION TO OFFER THE OTHER TWO SUITORS BBV AND SANTANDER BOTH REGARD OWNERSHIP OF BANESTO AS AN ATTRACTIVE OPPORTUNITY TO ENHANCE THEIR POSITIONS IN SPAIN'S DOMESTIC MARKET BUT THEY ARE HAMPERED BY PLEDGES TO SHAREHOLDERS NOT TO PAY TOO MUCH IN CAREFULLY WORDED COMMUNIQUES ALL THREE MADE CLEAR THEIR INTENTION OF BIDDING FOR BANESTO ON THEIR OWN RATHER THAN IN COLLABORATION WITH PARTNERS ALSO BOTH SANTANDER AND ARGENTARIA LEFT OPEN THE POSSIBILITY THAT THEY MIGHT DECIDE AGAINST MAKING A BID AT ALL BANESTO HAS A CURRENT STOCKMARKET VALUATION OF AROUND 490 BILLION PESETAS BUT ANALYSTS PREDICT THAT BIDS WILL BE MORE IN LINE WITH THE BANK'S BOOK VALUE OF 246 BILLION PESETAS LAST MONTH BANESTO SHAREHOLDERS APPROVED A PLAN TO BAIL OUT THE BANK AND VOTED TO BRING A CIVIL LIABILITY SUIT AGAINST ITS FORMER CHAIRMAN AND DIRECTORS ITS LARGEST SHAREHOLDER WITH A 79 STAKE IS CORSAIR PARTNERSHIP A 1 BILLION INVESTMENT FUND LED BY JP MORGAN & CO 9404190020 940419 DAKA PURCHASES 7 RESTAURANTS DANVERS MASS DAKA INTERNATIONAL INC SAID ITS FUDDRUCKERS INC UNIT AGREED TO PURCHASE SEVEN MIDWEST FUDDRUCKERS RESTAURANTS FROM DISCUS CORP A FRANCHISEE FOR 55 MILLION IT HAS AN OPTION TO BUY TWO MORE RESTAURANTS FOR 500000 IN A SEPARATE TRANSACTION DAKA SAID IT BOUGHT A 50 INTEREST IN CHAMPPS DEVELOPMENT CORP FOR 28 MILLION CHAMPPS IS DEVELOPING A CHAIN OF CASUAL DINING RESTUARANTS 9404190019 940419 LAW HIGH COURT TO CONSIDER FARMERS' RIGHTS TO SELL NOVEL VARIETIES OF CROPS FOR SEED BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT AGREED TO STEP INTO A FIGHT BETWEEN FARMERS AND SEED COMPANIES OVER THE RIGHT TO SELL NOVEL VARIETIES OF SEED AT ISSUE IS HOW MUCH LEGAL PROTECTION SHOULD BE PROVIDED TO INVENTORS OF NEW VARIETIES OF SUCH ECONOMICALLY IMPORTANT CROPS AS COTTON SOYBEANS AND WHEAT A LOWERCOURT RULING ALLOWED FARMERS TO RESELL UP TO HALF OF THE NEW CROPS THEY RAISE TO OTHER FARMERS FOR SEED THE SEED INDUSTRY CLAIMING THE RULING WOULD CRIPPLE DEVELOPMENT OF NEW CROP VARIETIES SUCCESSFULLY PERSUADED THE HIGH COURT TO REVIEW THAT ACTION THE SUPREME COURT'S DECISION WHICH ISN'T EXPECTED UNTIL NEXT WINTER AT THE EARLIEST WILL TURN ON THE JUSTICES' INTERPRETATION OF A 1970 FEDERAL LAW THAT WITH SOME EXCEPTIONS GIVES SEED DEVELOPERS EXCLUSIVE RIGHTS TO SELL THEIR INVENTIONS THESE RIGHTS ARE ANALOGOUS TO THOSE OF PATENT HOLDERS IN THE CASE BEFORE THE COURT ASGROW SEED CO AN UPJOHN CO UNIT SUED AN IOWA FARM FAMILY ALLEGING THAT IT ILLEGALLY SOLD A LARGE SHARE OF ITS CROP OF ASGROW'S PROTECTED SOYBEAN VARIETY AS SEED RULING AGAINST ASGROW LAST YEAR THE US COURT OF APPEALS FOR THE FEDERAL CIRCUIT IN WASHINGTON SAID THE FARMERS WERE PROTECTED BY AN EXCEPTION TO THE 1970 LAW FARMERS' ADVOCATES APPLAUDED THE DECISION CLAIMING IT WAS CONSISTENT WITH A TRADITIONAL PRACTICE OF SHARING SEED BUT THE INDUSTRY ARGUED THAT UNDER THE FEDERAL CIRCUIT'S INTERPRETATION A FARMER WHO BUYS ONLY ONE BATCH OF A NOVEL SEED TYPE EFFECTIVELY CAN BECOME A DEALER IN THAT SEED WITHOUT HAVING HAD TO INVEST IN RESEARCH AND DEVELOPMENT THE SEED INDUSTRY CONTENDS THAT THE PROPER INTERPRETATION OF THE FARMER EXCEPTION ALLOWS FARMERS TO KEEP ONLY ENOUGH CROPS GROWN FROM A PROTECTED SEED VARIETY TO PLANT THEIR NEXT BATCH OF CROPS IF THEY DECIDE NOT TO PLANT THEN THEY MAY SELL ONLY THAT LIMITED AMOUNT OF THE SEED THE INDUSTRY ASSERTS IN A SEPARATE BRIEF FILED AT THE HIGH COURT'S REQUEST THE CLINTON ADMINISTRATION SIDED WITH ASGROW IN ADDITION TO SEEKING THE SUPREME COURT'S HELP THE SEED INDUSTRY HAS BEEN PUSHING LEGISLATION IN CONGRESS THAT WOULD CLARIFY THE LAW AS FAVORING THE INDUSTRY IF LAWMAKERS AMEND THE STATUTE THE SUPREME COURT CASE WOULD LOSE MOST OF ITS SIGNIFICANCE IN OTHER ACTIONS YESTERDAY THE SUPREME COURT 9404190018 940419 JAPANESE INVESTORS IN US REAL ESTATE FINALLY TAKE BIG LOSSES ON SOURED ASSETS BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL AFTER SEVERAL YEARS OF POSTPONING THE INEVITABLE JAPANESE INVESTORS IN US REAL ESTATE ARE FINALLY ROLLING UP THEIR SLEEVES RESTRUCTURING OR SELLING THEIR ASSETS AND TAKING THEIR LOSSES NEARLY 25 OF THE 773 BILLION IN US REAL ESTATE ACQUIRED BY JAPANESE INVESTORS BETWEEN 1985 AND 1993 WAS BEING RESTRUCTURED OR SOLD AT THE END OF 1993 ACCORDING TO A STUDY BY LOS ANGELESBASED KENNETH LEVENTHAL & CO AND ANOTHER 20 IS LIKELY TO BE THIS YEAR THE STUDY BY THE REALESTATE ACCOUNTING AND CONSULTING FIRM CONFIRMS MOUNTING ANECDOTAL EVIDENCE THAT JAPANESE LENDERS HAVE DECIDED TO TAKE ACTION ON THEIR SOURED US PROPERTY INVESTMENTS IN THE PAST YEAR JAPANESE INVESTORS AND LENDERS HAVE SOLD AT A LOSS SUCH TROPHY PROPERTIES AS THE HYATT REGENCY WAIKOLOA IN HAWAII THE GALLERIA IN SCOTTSDALE ARIZ AND THE DORAL TELLURIDE SKI RESORT IN COLORADO THE LEVENTHAL REPORT DOESN'T ESTIMATE THE MAGNITUDE OF THE LOSSES LIKELY TO BE TAKEN BY OWNERS AND LENDERS THE VALUE OF COMMERCIAL REAL ESTATE FELL ROUGHLY 30 NATIONWIDE DURING THE RECENT SLUMP MANY EXPERTS MAINTAIN BECAUSE THE JAPANESE INVESTED HEAVILY AT THE PEAK OF THE MARKET IN CALIFORNIAN AND HAWAIIAN HOTELS AND RESORTS WHICH WERE HIT BADLY THEIR LOSSES WILL PROBABLY BE CLOSER TO 50 ACCORDING TO JACK RODMAN THE LEVENTHAL PARTNER WHO COMPILED THE REPORT THEY GOT INTO THE GAME LATE AND WERE THE LAST TO DISENGAGE FROM LENDING AND INVESTING NOTED WILLIAM BRUEGGEMAN A REALESTATE RESEARCH CONSULTANT TO GOLDMAN SACHS & CO WHO ALSO PREDICTS THAT JAPANESE LOSSES WILL EXCEED 40 UNLIKE THEIR AMERICAN COUNTERPARTS HOWEVER JAPANESE LENDERS HAVE SHOWN LITTLE INTEREST IN SELLING THEIR REAL ESTATE IN BULK AT STEEP DISCOUNTS ACCORDING TO VETERAN REALESTATE BOTTOM FISHERS I THINK THERE WILL BE A GENERAL INCREASE IN THE AMOUNT OF PROPERTY COMING ON THE MARKET FROM JAPAN SAID JOSEPH ROBERT JR OF JE ROBERT COS ALEXANDRIA VA A LONGTIME BUYER OF DISTRESSED REAL ESTATE WHO IS CURRENTLY NEGOTIATING WITH JAPANESE LENDERS ABOUT SEVERAL PROPERTIES BUT I DON'T THINK YOU'LL SEE THE KIND OF BULK SALE ACTIVITIES WE'VE SEEN IN THE US IN FACT ONLY 20 OF THE TRANSACTIONS TRACED BY LEVENTHAL REPRESENTED SALES WHILE 72 WERE RESTRUCTURINGS AND 8 FORECLOSURES THE FIGURES ATTEST TO THE PREFERENCE OF JAPANESE BANKS TO QUIETLY WORK OUT SOLUTIONS WITH BORROWERS EVEN WHEN ASSETS ARE SOLD IT IS USUALLY DONE BY MUTUAL CONSENT WITHOUT RESORTING TO FORECLOSURE IN JAPAN IT'S SEEN AS SHAMEFUL THAT BANKS HAVE THESE NONPERFORMING LOANS ON THEIR BOOKS AND THAT PEOPLE AREN'T PAYING THEIR DEBTS EXPLAINED MICHAEL MULLEN EXECUTIVE DIRECTOR OF THE JAPAN AMERICAN SOCIETY OF SOUTHERN CALIFORNIA IT WAS THE MINISTRY OF FINANCE THE ARM OF THE JAPANESE GOVERNMENT THAT REGULATES FINANCIAL INSTITUTIONS THAT PROMPTED THE INCREASE IN RESTRUCTURING ACTIVITY THE OWNERS JUST GOT THE WORD FROM THE BANKS THAT THEY HAD TO SELL CERTAIN ASSETS SAID MR RODMAN THEY'RE RESPONDING TO THE BANKS AND THE BANKS ARE RESPONDING TO THE MINISTRY OF FINANCE IN RESPONSE TO NEW REGULATIONS FROM THE MINISTRY JAPANESE BANKS REPORTED 130 BILLION IN NONPERFORMING REALESTATE LOANS AS OF LAST SEPTEMBER BUT MR RODMAN SAID THAT MANY OBSERVERS BELIEVE THE ACTUAL TOTAL TO BE TWO OR THREE TIMES AS MUCH AND THAT THE MINISTRY HAD DISCOURAGED A MORE THOROUGH REVALUATION PROCESS SO THAT BANK EARNINGS WOULD NOT BE COMPLETELY ERASED THE REPORT ALSO SAID THAT NEW JAPANESE INVESTMENT IN US REAL ESTATE FELL TO 705 MILLION IN 1993 MOST OF IT FOR COMPLETION OF CONTINUING PROJECTS FROM A PEAK OF 165 BILLION IN 1988 9404190017 940419 WHO'S NEWS LIMITED PAID WEXNER 3 LESS LAST YEAR AS BONUS DECLINED NEW YORK SPECIALTY RETAILER LIMITED INC WHOSE NET INCOME FELL 14 FOR THE YEAR ENDED JAN 29 PAID CHAIRMAN AND PRESIDENT LESLIE H WEXNER 3 LESS IN 1993 THAN IT DID IN 1992 ACCORDING TO THE PROXY STATEMENT FROM THE COLUMBUS OHIOBASED CLOTHING RETAILER MR WEXNER'S SALARY FOR FISCAL 1993 REMAINED UNCHANGED FROM FISCAL 1992 AT 115 MILLION BUT HIS BONUS SLIPPED TO 660100 FOR FISCAL 1993 FROM 710240 LIMITED PAYS BONUSES BASED ON AN INCENTIVE PLAN TIED TO THE COMPANY'S PERFORMANCE DURING THE CRUCIAL SPRING AND FALL SELLING SEASONS THE PROXY ALSO INDICATED THAT IN 1993 LIMITED PAID MICHAEL WEISS COMPANY VICE CHAIRMAN AND LIMITED'S NO 2 MERCHANT A SALARY OF 773996 AND A BONUS OF 497208 LAST YEAR WAS MR WEISS'S FIRST AS AN EXECUTIVE OFFICER OF THE COMPANY MR WEXNER WHO FOUNDED THE RETAILING COMPANY IN 1963 HAS BEEN TRYING TO TURN AROUND TWO OF LIMITED'S LARGEST DIVISIONS LIMITED STORES AND LERNER NEW YORK THOSE UNITS HAVE BEEN HURT BY AN INDUSTRYWIDE DOWNTURN IN SALES AT A TIME WHEN THE COMPANY IS CLOSING AND REMODELING STORES LIMITED OPERATES 4623 SPECIALTYRETAILING STORES INCLUDING BATH & BODY WORKS AND VICTORIA'S SECRET SHOULD LIMITED'S STOCK PERFORMANCE IMPROVE MR WEXNER WILL MAKE OUT NICELY UNDER THE COMPANY'S FIRST RESTRICTED STOCK PLAN HE WAS AWARDED 22 MILLION IN RESTRICTED STOCK IN FISCAL 1993 BUT MR WEXNER CAN ONLY RECEIVE THE SHARES IN STEPS 25 WHEN THE SHARES REACH 30 AN ADDITIONAL 25 AT 35 AND THE REMAINING 50 WHEN THE SHARES REACH 40 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE LIMITED SHARES FELL 625 CENTS TO 19125 9404190016 940419 UNIVERSAL FOODS TO SELL FROZEN POTATO LINE ACQUISITION EXPECTED MILWAUKEE UNIVERSAL FOODS CORP AGREED TO SELL ITS BIGGEST BUSINESS FROZEN POTATOES TO CONAGRA INC TO FINANCE AN EXPECTED ACQUISITION IN THE FOODINGREDIENTS MARKET TERMS WEREN'T DISCLOSED THE MOVE REPRESENTS A FURTHER CONSOLIDATION IN THE CYCLICAL COMMODITYBASED FRENCH FRY BUSINESS ALREADY DOMINATED BY CONAGRA AND SEVERAL OTHER LARGE PLAYERS WITH ANNUAL SALES LAST YEAR OF ABOUT 267 MILLION UNIVERSAL WAS AMONG THE SMALLEST PROCESSORS IN A 42 BILLION GLOBAL BUSINESS ALTHOUGH IT LED IN SALES OF SUCH SPECIALTY PRODUCTS AS SPIRAL POTATOES UNIVERSAL WAS FIFTH IN NORTH AMERICA IN SALES OF MORE POPULAR STRAIGHT OR STICK FRIES UNIVERSAL INDICATED IT WOULD USE THE PROCEEDS TO EXPAND ITS FOOD INGREDIENTS AND FLAVORING BUSINESS WHICH LAST YEAR CONTRIBUTED 27 OF ITS REVENUE COMPARED WITH 30 FROM FROZEN POTATO PRODUCTS KIMBERLY STULO ANALYST AT ROBERT W BAIRD IN MILWAUKEE SAID THE SALE HAD BEEN ANTICIPATED AS PART OF UNIVERSAL'S REFOCUSING ON THE HIGHERMARGIN INGREDIENTS BUSINESS AS FOR ACQUISITION TARGETS SHE SAID SHE BELIEVES THAT UNIVERSAL HAS SOMETHING SIGNIFICANT IN MIND THE DIVISION'S DIVESTITURE SCHEDULED TO CLOSE ABOUT JUNE 1 WOULD GIVE CONAGRA'S LAMBWESTON FROZENPOTATO PRODUCTS UNIT A HEFTY SALES INCREASE IN FISCAL 1993 THE UNIT REPORTED SALES OF ABOUT 500 MILLION BASED IN BOISE IDAHO UNIVERSAL'S FROZEN FOODS DIVISION INCLUDES THREE PROCESSING PLANTS WHICH EMPLOY ABOUT 2000 PEOPLE CONAGRA IS BASED IN OMAHA NEB IN REPORTING FISCAL SECONDQUARTER EARNINGS YESTERDAY MILWAUKEEBASED UNIVERSAL SAID THAT FROZEN FOODS REVENUE AND VOLUME HAD IMPROVED SHARPLY AFTER A WEAK FIRST QUARTER BUT IT SAID OPERATING PROFITS CONTINUED TO BE DEPRESSED BY RAWMATERIAL QUALITY AND PRODUCT MIX AS WELL AS BY ADVERSE WEATHER FROZEN FOODS CONTRIBUTED AN ESTIMATED 28 OF UNIVERSAL'S OPERATING EARNINGS IN FISCAL 1993 UNIVERSAL SHARES CLOSED YESTERDAY AT 32 DOWN 375 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING CONAGRA CLOSED AT 2725 DOWN 75 CENTS 9404190015 940419 AMERICAN FINANCIAL DEBENTURES CINCINNATI AMERICAN FINANCIAL CORP SAID IT ISSUED ABOUT 2035 MILLION IN NEW 975 DEBENTURES IN EXCHANGE FOR DEBENTURES OUTSTANDING UNDER AN EXCHANGE OFFER THAT EXPIRED APRIL 15 AMERICAN FINANCIAL WHICH HAS INTERESTS IN PROPERTY AND CASUALTY INSURANCE ANNUITY PROGRAMS AND PORTFOLIO INVESTING SAID ALL OLD DEBENTURES TENDERED FOR EXCHANGE WERE ACCEPTED 9404190014 940419 TECHNOLOGY & HEALTH CHIP MAKERS ZILOG XICOR NOVELLUS POST STRONG 1STPERIOD NET A WALL STREET JOURNAL NEWS ROUNDUP STRONG SEMICONDUCTOR DEMAND CONTINUED TO BOOST EARNINGS OF CHIP CONCERNS IN THE FIRST QUARTER WITH ZILOG INC XICOR INC AND NOVELLUS SYSTEMS INC REPORTING STRONG NETINCOME GROWTH ZILOG REPORTED FIRSTQUARTER NET INCOME ROSE 37 TO 8 MILLION OR 41 CENTS A SHARE COMPARED WITH 58 MILLION OR 32 CENTS A SHARE IN THE YEARAGO QUARTER THE CAMPBELL CALIF CHIP MAKER SAID REVENUE ROSE 9 TO 525 MILLION FROM 48 MILLION A YEAR EARLIER WITH SALES GROWTH ACROSS ITS PRODUCT LINE AND PARTICULARLY STRONG SALES TO MAKERS OF CONSUMER GOODS LIKE TELEVISIONS AND TELEPHONE ANSWERING MACHINES XICOR EMERGED FROM A FOURYEAR STRING OF QUARTERLY NET LOSSES REPORTING FIRSTQUARTER NET INCOME OF 511000 OR THREE CENTS A SHARE COMPARED WITH A NET LOSS OF 23 MILLION OR 13 CENTS A SHARE IN THE YEARAGO QUARTER INCREASED INTERNATIONAL SALES HELPED BOOST REVENUE 8 TO 248 MILLION FROM 23 MILLION A YEAR AGO THE MILPITAS CALIF CHIP MAKER SAID IT SAID EARNINGS WERE ALSO HELPED BY INCREASED MANUFACTURING EFFICIENCIES AND A DROP IN THE COST OF SALES WHICH FELL TO 69 OF SALES FROM 79 LAST YEAR NOVELLUS SYSTEMS REPORTED RECORD NET INCOME OF 72 MILLION OR 47 CENTS A SHARE UP 24 FROM 21 MILLION OR 15 CENTS A SHARE IN THE YEARAGO QUARTER THE SAN JOSE CALIF COMPANY MAKES CHIPMANUFACTURING EQUIPMENT AND CONTINUES TO BENEFIT AS CHIP MAKERS PLAGUED BY A WORLDWIDE SHORTAGE OF CHIPMAKING CAPACITY EXPAND THEIR FACTORIES AND BUILD NEW ONES NOVELLUS'S SALES FOR THE QUARTER MORE THAN DOUBLED TO 424 MILLION COMPARED WITH FIRSTQUARTER 1993 SALES OF 21 MILLION 9404190013 940419 WHO'S NEWS TWO FLUOR CORP EXECUTIVES SHIFTED THIRD OFFICIAL QUITS IRVINE CALIF FLUOR CORP SAID ITS PRESIDENT AND CHIEF OPERATING OFFICER AND A TOP EXECUTIVE OF ITS MAIN OPERATING UNIT FLUOR DANIEL HAVE BEEN REASSIGNED AS VICE CHAIRMEN WHILE ANOTHER TOP FLUOR DANIEL EXECUTIVE HAS RESIGNED VINCENT L KONTNY 56 YEARS OLD WHO HAD BEEN PRESIDENT AND CHIEF OPERATING OFFICER AND HUGH K COBLE 58 WHO WAS GROUP PRESIDENT OF FLUOR DANIEL IN CHARGE OF OPERATIONS WERE BOTH NAMED VICE CHAIRMAN GERALD M GLENN 51 FLUOR DANIEL GROUP PRESIDENT IN CHARGE OF MARKETING RESIGNED TO PURSUE PERSONAL INTERESTS FLUOR SAID THE EXECUTIVE CHANGES AT THE ENGINEERING AND CONSTRUCTION FIRM WERE DESIGNED TO DO AWAY WITH BUREAUCRACY ELIMINATING LAYERS OF MANAGEMENT BETWEEN FLUOR'S CHAIRMAN AND CHIEF EXECUTIVE LESLIE G MCCRAW AND THE COMPANY'S OPERATIONS A FLUOR SPOKESWOMAN SAID THE CHANGES ARE PART OF A BROADER REENGINEERING OF RESPONSIBILITIES AT THE COMPANY THAT FLUOR ANNOUNCED EARLIER THIS YEAR DUTIES OF KEY EXECUTIVES NOW REPORTING DIRECTLY TO MR MCCRAW ARE CURRENTLY BEING REDEFINED AND NEW SENIOR EXECUTIVE ASSIGNMENTS ARE EXPECTED TO BE ANNOUNCED NEXT MONTH THE COMPANY SAID ONE OF THE THINGS I WAS INTERESTED IN WAS FLATTENING THE ORGANIZATION AND GETTING CLOSER TO SOME OF THE YOUNGER MANAGEMENT THAT ARE POTENTIALS IN A LONGERRANGE SUCCESSION PLAN MR MCCRAW SAID IN THEIR NEW POSTS AS VICE CHAIRMEN MR KONTNY AND MR COBLE WILL FOCUS ON BROAD STRATEGIC ISSUES AND KEY CLIENT RELATIONSHIPS WITH EMPHASIS ON FLUOR'S EXPANSION IN GROWING MARKETS LIKE VIETNAM CHINA AND AFRICA MR MCCRAW SAID THE NEWS CAME AFTER THE STOCK MARKET CLOSE YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FLUOR FELL 1125 TO 5175 9404190012 940419 TECHNOLOGY PLATINUM SOFTWARE SHARES PLUNGE 644 ON FORECAST OF LOSSES IRVINE CALIF PLATINUM SOFTWARE CORP LOST NEARLY TWOTHIRDS OF ITS MARKET VALUE YESTERDAY AS INVESTORS DUMPED THEIR HOLDINGS ON NEWS OF EXPECTED HEAVY OPERATING LOSSES AND THE SURPRISE RESIGNATIONS OF FOUR TOP EXECUTIVES THE ANNOUNCEMENT SENT SHARES OF THIS MAKER OF FINANCIAL AND BUSINESSINFORMATION SOFTWARE TUMBLING 64375 OR 644 TO CLOSE AT 35625 A SHARE IN NASDAQ STOCK MARKET TRADING A TOTAL OF 42 MILLION SHARES A THIRD OF THE 124 MILLION OUTSTANDING CHANGED HANDS YESTERDAY PLATINUM SAID IT ANTICIPATES A SUBSTANTIAL LOSS FROM OPERATIONS ON REVENUE OF BETWEEN 13 MILLION AND 15 MILLION FOR ITS THIRD QUARTER ENDED MARCH 31 THE COMPANY ALSO SAID IT PLANS TO TAKE A ONETIME RESTRUCTURING CHARGE OF BETWEEN 7 MILLION AND 10 MILLION AND WILL RESTATE ITS FINANCIAL RESULTS AS FAR BACK AS SEPTEMBER 1991 RESULTING IN A CORRESPONDING DECREASE TO STOCKHOLDERS EQUITY WHICH STOOD AT 569 MILLION ON DEC 31 OF ABOUT 13 MILLION TO 20 MILLION PLATINUM ALSO ANNOUNCED THE RESIGNATIONS OF CHIEF EXECUTIVE OFFICER GERALD R BLACKIE 40 YEARS OLD CHIEF FINANCIAL OFFICER JON R ERICKSON 37 AND EXECUTIVE VICE PRESIDENTS KEVIN P RIEGELSBERGER 36 AND TIMOTHY J MCMULLEN 36 ALL OF WHOM HAVE ALSO LEFT THE BOARD CARMELO J SANTORO 53 WILL ACT AS INTERIM CHIEF EXECUTIVE AND BRUCE C EDWARDS 40 WILL SERVE AS INTERIM CHIEF FINANCIAL OFFICER THEY ARE THE ONLY DIRECTORS REMAINING MR SANTORO SAID THE EXECUTIVES RESIGNED THEIR POSTS VOLUNTARILY AFTER WEIGHING THE PROBABLE FALLOUT FROM THE RESTATEMENT OF EARNINGS 9404190011 940419 BUSINESS BRIEF ENTERRA CORP FIRM TO BUY TOTAL ENERGY GIVING FUNDS 41 OF STOCK ENTERRA CORP HOUSTON SAID IT AGREED IN PRINCIPLE TO ACQUIRE HOUSTONBASED TOTAL ENERGY SERVICES CO A PRIVATELY HELD OILFIELD SERVICE CONCERN FOR 113 MILLION ENTERRA COMMON SHARES AND CERTAIN OTHER FINANCIAL CONSIDERATIONS ENTERRA'S SHARES CLOSED AT 1975 DOWN 125 CENTS ON THE NEW YORK STOCK EXCHANGE GIVING STOCK PORTION OF THE PACT AN INDICATED VALUE OF 2232 MILLION IN ADDITION THE ENERGYSERVICES CONCERN SAID IT AGREED TO BUY OUT MINORITY INTERESTS IN TWO TOTAL ENERGY SUBSIDIARIES FROM OTHER PARTIES FOR 23 MILLION CASH AND ASSUME 68 MILLION OF TOTAL ENERGY DEBT ENTERRA SAID 99 OF TOTAL ENERGY'S COMMON STOCK IS OWNED BY A GROUP OF PRIVATE ENERGY INVESTMENT FUNDS MANAGED BY FIRST RESERVE CORP OF GREENWICH CONN AFTER THE TRANSACTION THOSE FUNDS WILL OWN ABOUT 41 OF ENTERRA'S COMMON STOCK ENTERRA HAD ABOUT 163 MILLION COMMON SHARES OUTSTANDING AT DEC 31 ENTERRA SAID THE FUNDS AGREED TO ENTER A STOCKHOLDER AGREEMENT THAT CALLS FOR REPRESENTATION ON ENTERRA'S BOARD AND CERTAIN RESTRICTIONS ON ACCUMULATING OR DISPOSING OF COMMON STOCK 9404190010 940419 BUSINESS BRIEF PANHANDLE EASTERN CORP GAS PIPELINE OPERATOR'S UNIT SIGNS MITCHELL ENERGY PACT PANHANDLE EASTERN CORP OF HOUSTON SAID ONE OF ITS UNITS SIGNED A LETTER OF INTENT TO PURCHASE CERTAIN MITCHELL ENERGY & DEVELOPMENT CORP NATURALGAS PIPELINE ASSETS FOR 120 MILLION THE PANHANDLE EASTERN SUBSIDIARY CENTANA ENERGY CORP AGREED TO BUY MITCHELL'S WINNIE PIPELINE CO INTRASTATE PIPELINE SPINDLETOP GAS STORAGE FACILITY AND A LIQUID ENERGY CORP NATURALGAS PROCESSING PLANT THE LETTER OF INTENT AGREEMENT IS WITH MITCHELL'S MND ENERGY CORP SUBSIDIARY THE SALE IS CONTINGENT UPON APPROVAL BY THE BOARDS OF BOTH COMPANIES THE EXECUTION OF DEFINITIVE AGREEMENTS AND REGULATORY APPROVAL SUBJECT TO REGULATORY APPROVALS THE COMPANIES INTEND TO CLOSE ON THE TRANSACTION IN JUNE 9404190009 940419 TECHNOLOGY & HEALTH TWO ALTERNATIVES TO CLINTON HEALTH BILL ARE SET FOR VOTE IN A SECOND HOUSE PANEL BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A SECOND HOUSE SUBCOMMITTEE IS SET TO BEGIN VOTING ON TWO ALTERNATIVES TO PRESIDENT CLINTON'S HEALTHCARE BILL THE LABORMANAGEMENT RELATIONS SUBCOMMITTEE OF THE HOUSE EDUCATION AND LABOR COMMITTEE THURSDAY WILL BEGIN CONSIDERING A BILL THAT RESEMBLES THE WHITE HOUSE PROPOSAL BUT WOULD OFFER RICHER BENEFITS AND MORE GENEROUS SUBSIDIES FOR LOWINCOME PEOPLE AND SMALL BUSINESSES THE BILL DRAFTED PRIMARILY BY SUBCOMMITTEE CHAIRMAN PAT WILLIAMS D MONT WOULD REJECT THE PRESIDENT'S PROPOSED SYSTEM OF MANDATORY HEALTH ALLIANCES AND ASSESS A 1 PAYROLL TAX ON ALL COMPANIES WITH MORE THAN 5000 WORKERS THE PANEL ALSO PLANS TO VOTE ON LEGISLATION THAT WOULD ESTABLISH A GOVERNMENTRUN TAXPAYERFINANCED SINGLEPAYER HEALTH SYSTEM SIMILAR TO CANADA'S AT A NEWS CONFERENCE YESTERDAY MR WILLIAMS SAID BOTH BILLS PROBABLY HAVE ENOUGH VOTES TO PASS THE PANEL THE LABORMANAGEMENT SUBCOMMITTEE IS THE SECOND CONGRESSIONAL PANEL TO ACT ON HEALTHCARE REFORM LEGISLATION THIS SPRING THE EDUCATION AND LABOR COMMITTEE AND ITS LABORMANAGEMENT SUBCOMMITTEE ARE WIDELY CONSIDERED THE MOST LIBERAL OF THE MAJOR CONGRESSIONAL PANELS THAT WILL REVIEW HEALTH LEGISLATION THE SUBCOMMITTEE'S MOVE TO ENRICH THE PRESIDENT'S HEALTH BILL COMES AS OTHER COMMITTEES AND THE SENATE DEMOCRATIC LEADERSHIP ARE LOOKING FOR WAYS TO PARE IT BACK AND REDUCE ITS COST SENATE MAJORITY LEADER GEORGE MITCHELL D MAINE TOLD DEMOCRATIC SENATORS AT A RETREAT LAST WEEKEND THAT IT IS CRITICAL TO MAKE UP THE MONEY THAT THE CONGRESSIONAL BUDGET OFFICE SAYS THE CLINTON PLAN WOULD ADD TO THE DEFICIT DURING ITS FIRST DECADE IN PLACE MR MITCHELL OUTLINED SEVERAL CHEAPER WAYS TO ACHIEVE THE PRESIDENT'S GOAL OF UNIVERSAL HEALTH COVERAGE THE OPTIONS INCLUDE REDUCING THE REQUIRED EMPLOYER CONTRIBUTION TO 50 FROM 80 OF THE COST OF THE STANDARD BENEFITS PACKAGE TARGETING SUBSIDIES TO LOWWAGE WORKERS INSTEAD OF ENTIRE BUSINESSES AND LETTING FIRMS WITH MORE THAN 1000 WORKERS OPT OUT OF THE NEW SYSTEM PEOPLE ATTENDING THE SESSION SAID MR MITCHELL WAS MERELY OUTLINING AN ARRAY OF IDEAS AS A MEANS OF GENERATING DISCUSSION AND WASN'T ADVOCATING ANY ONE OF THEM THE WILLIAMS BILL WOULD RETAIN THE PRESIDENT'S REQUIREMENT THAT ALL EMPLOYERS PAY ON BEHALF OF EACH FULLTIME WORKER AT LEAST 80 OF THE PRICE OF THE NATIONAL STANDARD HEALTH BENEFITS PACKAGE IT WOULD ALSO KEEP THE PRESIDENT'S PROPOSED CAPS ON PRIVATE HEALTHINSURANCE PREMIUMS BUT IT WOULD LEAVE IT TO STATES TO DECIDE WHETHER TO REQUIRE FIRMS TO JOIN BIG INSURANCEPURCHASING ALLIANCES AND WHILE THE PRESIDENT'S PLAN WOULD ALLOW FIRMS WITH MORE THAN 5000 WORKERS TO OPT OUT OF THE NEW HEALTH SYSTEM THE WILLIAMS PLAN WOULD REQUIRE THEM TO DO SO AND ASSESS THEM A 1 PAYROLL LEVY TO HELP PAY FOR SUBSIDIES TO LOWINCOME PEOPLE WHILE THE PRESIDENT WOULD OFFER SUBSIDIES TO PEOPLE WITH ANNUAL INCOMES BELOW 150 OF THE FEDERAL POVERTY LINE MR WILLIAMS'S PLAN WOULD RAISE THAT CEILING TO 200 AND WHILE THE PRESIDENT'S PLAN WOULD LIMIT THE PREMIUM CONTRIBUTION OF VERY SMALL BUSINESSES TO 35 OF PAYROLL THE WILLIAMS BILL WOULD CAP THEM AT 2 MR WILLIAMS SAID HE HADN'T FINISHED ESTIMATING THE COST OF HIS PLAN BUT HE DEFENDED HIS DECISION TO PUSH FOR A MORE EXPENSIVE PLAN IF WE MAKE THE MISTAKE OF NICKLING AND DIMING A TWOBIT BENEFITS PACKAGE TOGETHER WE WILL RUE THE DAY HE SAID WE OUGHT TO GET IT RIGHT FROM THE START THE MONTANA LAWMAKER ALSO SAID HE HADN'T DECIDED HOW TO PAY FOR ALL THE ADDITIONAL EXPENSES IN HIS BILL MEANWHILE THE HOUSE ENERGY AND COMMERCE COMMITTEE CHAIRED BY REP JOHN DINGELL D MICH IS PLANNING TO BEGIN DRAFTING ITS HEALTHCARE BILL NEXT TUESDAY 9404190008 940419 FIRMS SEEK QUICK DERIVATIVES EDUCATION BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL ALL THE BAD NEWS ABOUT DERIVATIVES IN THE PAST WEEK IS GOOD NEWS FOR SOME A BURGEONING COTTAGE INDUSTRY OF EXPERTS IS SPRINGING UP TO OFFER ADVICE TO HARRIED TREASURERS AND PUZZLED DIRECTORS ON HOW TO HANDLE THESE INCREASINGLY POPULAR AND COMPLEX FINANCIAL PRODUCTS WHICH HELP COMPANIES MANAGE OR TAKE RISKS FOLLOWING LAST WEEK'S ANNOUNCEMENT BY PROCTER & GAMBLE CO THAT IT WILL TAKE A 157 MILLION PRETAX CHARGE BECAUSE OF DERIVATIVES DEALS GONE AMOK BUSINESS FOR THE DERIVATIVES COUNSELORS IS TAKING OFF THE PHONE KEEPS RINGING OFF THE HOOK SAYS LESLIE RAHL A FORMER BANKER WHO HAS BECOME A DERIVATIVES ADVISER P&G'S ANNOUNCEMENT OF THE LOSSES IT HAD SUSTAINED USING A PARTICULARLY LETHAL FORM OF DERIVATIVE SHOCKED BOTH WALL STREET AND CORPORATE AMERICA DERIVATIVES ARE FINANCIAL AGREEMENTS BETWEEN TWO PARTIES THE VALUES OF WHICH ARE LINKED TO THE PRICE OF AN UNDERLYING ASSET SUCH AS A STOCK BOND OR CURRENCY COMPANIES USE DERIVATIVES TO MANAGE THE RISKS OF SUCH THINGS AS FLUCTUATING INTEREST RATES CURRENCY VALUES OR COMMODITIES PRICES BUT SUDDEN CHANGES IN MARKETS CAN WHIPSAW THE VALUE OF DERIVATIVES AS P&G FOUND OUT LAST WEEK TO ITS DISMAY AFTER THAT DEBACLE EVERYONE SITTING IN THE TREASURER'S CHAIR LIKE I AM GOT A LOT OF QUESTIONS FROM THEIR BOSSES SAYS JAMES JOHNSON TREASURER OF PRECISION CASTPARTS CORP OF PORTLAND ORE AND THEY'RE PASSING A LOT OF THOSE QUESTIONS ON TO EXPERT OUTSIDERS WE'RE BEING ASKED BY CLIENTS TO DO MORE COMPREHENSIVE REVIEWS OF THEIR ENTIRE TREASURY OPERATIONS WITH A VERY SPECIFIC FOCUS ON RISK MANAGEMENT SAYS FRED L COHEN DIRECTOR OF CORPORATE TREASURY CONSULTING FOR PRICE WATERHOUSE WHILE IT'S EASY ENOUGH TO PREDICT THE EFFECT OF CHANGING INTEREST RATES ON THE SIMPLEST OF DERIVATIVES TRANSACTIONS SOME OF THE MORE ARCANE FINANCIAL INSTRUMENTS ARE ANOTHER MATTER ENTIRELY THEY REQUIRE SOPHISTICATED COMPUTER MODELING SOMETHING FEW COMPANIES OTHER THAN BANKS AND BROKERAGES HAVE AVAILABLE WE BELIEVE ANY ENDUSER SHOULD HAVE THE ABILITY TO MODEL THE INSTRUMENT THAT THEY'RE BUYING SAYS MR COHEN BUT MANY COMPANIES HE ADDS NEED TO INCREASE THE SOPHISTICATION OF THEIR MODELS FOR A FEE COMPANIES RANGING FROM PRICE WATERHOUSE AND COOPERS & LYBRAND TO TINY OPERATIONS RUN BY EXBANKERS AND ACADEMICS LIKE MS RAHL AND MARK GARMAN OF THE UNIVERSITY OF CALIFORNIA AT BERKELEY WILL HELP FIGURE OUT WHAT A COMPANY'S RISK EXPOSURE IS UNDER VARIOUS MARKET CONDITIONS TOP MANAGEMENTS DON'T HAVE TO UNDERSTAND ALL THE GREEK LETTERS BUT THEY HAVE TO HAVE POLICIES AND PROCEDURES ARGUES MR GARMAN WHOSE FIRM FINANCIAL ENGINEERING ASSOCIATES SELLS LOWCOST SOFTWARE TO TRACK DERIVATIVE POSITIONS OPTIONS HAVE TO BE MANAGED AND NOT JUST ON A ONCEAMONTH BASIS THREE YEARS AGO MS RAHL LEFT CITIBANK AS COHEAD OF DERIVATIVES TO HAVE A BABY AND DO SOME PARTTIME CONSULTING SHE ORIGINALLY PLANNED TO WORK ABOUT THREE DAYS A WEEK FOR COMPANIES THAT WERE INTERESTED IN THE BOOMING NEW BUSINESS NOW SHE NEEDS A BABY SITTER AND IS WORKING FIVE SIX SEVEN DAYS A WEEK BECAUSE OF THE INCREASED CLAMOR FOR ADVICE AND COUNSEL HER SIXPERSON FIRM RECENTLY TAUGHT AUDITORS AT A LARGE FINANCIAL CONCERN THAT USES DERIVATIVES WHAT QUESTIONS TO ASK AND HOW TO EVALUATE THE APPROPRIATENESS OF DERIVATIVES POLICIES AND PROCEDURES OTHER FIRMS SUCH AS FINANCIAL MARKETS INTERNATIONAL INC CONCENTRATE ON TRAINING AND EDUCATION THE ONEYEAROLD FIRM FOUNDED BY A MIXTURE OF ACADEMICS BANKERS AND EXCHANGE PROFESSIONALS HOPES TO PROVIDE TECHNICAL ASSISTANCE TO FINANCIAL INSTITUTIONS AND CORPORATIONS SAYS CHARLES SEEGER PRESIDENT AND FOUNDER THERE'S A PEJORATIVE ATMOSPHERE THAT SURROUNDS THESE MARKETS BUT MISUNDERSTANDING MEANS OPPORTUNITY FOR HIS FIRM FINANCIAL INSTITUTIONS THAT DO A LOT OF DERIVATIVES BUSINESS HAVE LONG RELIED ON SYSTEMS THAT HELP THEM MANAGE THEIR RISKS HIGHEND SOFTWARE COMPANIES SUCH AS SUNGARD CAPITAL MARKETS BASED IN LONDON INFINITY FINANCIAL TECHNOLOGY INC MOUNTAINVIEW CALIF AND CATS SOFTWARE A PALO ALTO CALIF COMPANY BUILT THEIR BUSINESSES SELLING HIGHLY SOPHISTICATED SOFTWARE TO BIG FINANCIAL INSTITUTIONS THAT NEED TO MONITOR HUGE DERIVATIVES POSITIONS NOW THEY'RE FINDING MANUFACTURING AND SERVICE COMPANIES ARE BECOMING INTERESTED IN THE SOFTWARE AS WELL BUYING A SYSTEM IS REALLY AN INSURANCE POLICY SAYS ROD BECKSTROM CHIEF EXECUTIVE OF CATS WHO SAID 10 TO 15 OF ITS BUSINESS COMES FROM MAJOR NONFINANCIAL CORPORATIONS THE MORE COMPLEX THINGS BECOME THE MORE COMPLICATED ARE THE TOOLS YOU NEED WHILE A CATS SYSTEM TO MONITOR 50000 DERIVATIVES TRANSACTIONS AT ONCE CAN COST A BIG FINANCIAL INSTITUTION MILLIONS OF DOLLARS SCALEDDOWN VERSIONS ARE AVAILABLE TO RUN 500 OR FEWER FOR 80000 TO 100000 GENERAL MOTORS CORP WHICH IS A BIG USER OF DERIVATIVES FOR FOREIGNCURRENCY AND INTERESTRATE HEDGING RECENTLY DECIDED TO TIGHTEN ITS CONTROL OF THOSE TRANSACTIONS GM SHOPPING AMONG SOFTWARE PRODUCERS LIKE INFINITY AND SUNGARD PLANS TO ORDER 500000 TO 1 MILLION OF SOFTWARE TO IMPROVE ITS ABILITY TO TRACK AND PREDICT THE VALUE OF ITS DERIVATIVE INSTRUMENTS GM BEGAN A REVIEW OF ITS MANAGEMENT OF DERIVATIVES LAST YEAR AFTER THE GROUP OF 30 A GROUP OF FORMER CENTRAL BANKERS INDUSTRY EXECUTIVES AND ACADEMICS RECOMMENDED THAT COMPANIES THAT USE DERIVATIVES NOT ONLY TIGHTEN POLICIES AND PROCEDURES BUT ALSO MARK THEIR DERIVATIVES POSITIONS TO MARKET RATHER THAN CARRY THEM AT FACE VALUE IF YOU'RE GOING TO BE AN ACTIVE USER IT'S A BIG INVESTMENT IN PEOPLE AND SYSTEMS SAYS AN OFFICIAL IN GM'S TREASURER'S OFFICE JOSEPH B WHITE AND LESLIE SCISM CONTRIBUTED TO THIS ARTICLE 9404190007 940419 CREDIT MARKETS BOND PRICES SINK ON FED'S LATEST RATE BOOST BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE THIRD INTERESTRATE BOOST BY THE FEDERAL RESERVE IN AS MANY MONTHS SENT BOND PRICES TUMBLING AS TRADERS WORRIED THAT THINGS COULD GET WORSE THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND FELL MORE THAN 1 3/8 POINTS TO 86 SHAVING MORE THAN 1375 FROM THE MARKET VALUE OF EACH 1000 FACE AMOUNT OF BONDS THE YIELD JUMPED TO 742 THE HIGHEST SINCE JANUARY OF LAST YEAR THE TREASURY BOND SELLOFF SPILLED OVER INTO OTHER FIXEDINCOME MARKETS NOTABLY MUNICIPAL BONDS CORPORATES MORTGAGEBACKED SECURITIES AND FOREIGN BONDS THERE'S A FEAR FACTOR RUNNING THROUGH THE TREASURY MARKET SAYS JOHN COSTAS HEAD OF GOVERNMENTBOND TRADING AT CS FIRST BOSTON WE'VE HAD THIS SEQUENTIAL REACTION FROM TREASURYS TO MORTGAGES TO DERIVATIVES THE MARKET IS BRACING ITSELF FOR WHAT THAT MIGHT MEAN BOND INVESTORS FEEL LIKE THEY ARE IN A 15ROUND FIGHT SAID JERRY FINNERAN WHO RUNS TCW AMERICAS FUND FOR TRUST CO OF THE WEST IN LOS ANGELES YOU GO IN HOPING YOU'RE GOING TO KNOCK SOMEONE OUT INSTEAD TIME AFTER TIME YOU GET KNOCKED DOWN THEN THEY PICK YOU UP AND SAY KEEP FIGHTING MANY TRADERS FEAR THE PRICE DECLINES WILL ACCELERATE AS MORE BOND MUTUAL FUND INVESTORS SEE HOW THE VALUE OF THEIR SHARES HAVE PLUNGED AND DECIDE TO SELL FORCING FUND MANAGERS TO LIQUIDATE MORE BONDHOLDINGS TO MEET DEMANDS FOR CASH FROM DEPARTING FUND HOLDERS SOME BOND MUTUAL FUNDS ALREADY ARE SEEING OUTFLOWS IN THE WAKE OF THE FED'S DECISION TO RAISE THE FEDERALFUNDS RATE WHICH IS WHAT BANKS CHARGE ON OVERNIGHT LOANS TO EACH OTHER THE FED BOOSTED THE FUNDS RATE FOR THE FIRST TIME IN FIVE YEARS ON FEB 4 AND A SECOND INCREASE CAME ON MARCH 22 YESTERDAY MORNING THE FED ISSUED A STATEMENT SAYING THAT IT WILL INCREASE SLIGHTLY THE DEGREE OF PRESSURE ON RESERVE POSITIONS AND THAT THE ACTION IS EXPECTED TO BE ASSOCIATED WITH A SMALL INCREASE IN SHORTTERM MONEY INTEREST RATES LATER AT MIDMORNING THE FED SIGNALED THAT IT NOW IS TARGETING THE FEDERALFUNDS RATE AT 375 UP FROM 35 THE FED'S GOAL IS TO CURB INFLATIONARY PRESSURES IN THE NATION'S ECONOMY WHICH HAS GROWN FASTER THAN EXPECTED IN RECENT MONTHS BOND INVESTORS DREAD INFLATION BECAUSE IT REDUCES THE BUYING POWER OF A FIXED INCOME THE TUMBLE IN THE TREASURY MARKET CONTRIBUTED TO YESTERDAY'S POSTPONEMENT OF AN INITIAL PUBLIC OFFERING OF A CLOSEDEND BOND FUND FROM VAN KAMPEN MERRITT OF CHICAGO COMPANY OFFICIALS SAID THE OFFERING WAS POSTPONED FOR LACK OF DEMAND IN THEORY IF THE FED IS MAKING A PREEMPTIVE STRIKE AGAINST INFLATION THAT'S GOOD NEWS FOR BOND INVESTORS BUT MANY INVESTORS HAVEN'T INTERPRETED THE FED'S THREE INTERESTRATE BOOSTS THAT WAY THEY FEAR THAT THE FED HAS FALLEN BEHIND IN ITS FIGHT AGAINST INFLATION AND NOW IS TRYING TO CATCH UP MOST ECONOMISTS SAY THEY BELIEVE INFLATIONARY PRESSURES REMAIN SUBDUED BUT MANY INVESTORS HAVE CONCLUDED THAT BECAUSE THE FED IS ACTING THIS AGGRESSIVELY INFLATION MUST BE CLOSER THAN WE THOUGHT IT WAS ACCORDING TO JOHN CANAVAN AN ANALYST AT STONE & MCCARTHY RESEARCH ASSOCIATES AN ECONOMIC ANALYSIS FIRM IN PRINCETON NJ THE OVERRIDING FACT REMAINS THAT THIS IS A BEAR MARKET AND INVESTORS WILL LOOK FOR REASONS TO SELL SAID MR CANAVAN YESTERDAY'S RATE RISE WAS A GOOD REASON TO SELL THERE IS LITTLE GOOD IN POINTING TO PAST AND PRESENT INFLATION NUMBERS AND SECONDGUESSING THE FED'S RATE INCREASES ANYWAY SAID MR CANAVAN THE FED CANNOT CONTROL INFLATION TODAY OR YESTERDAY HE SAID WHAT THEY CAN DO IS CONTROL INFLATION FOR TOMORROW AND THE FUTURE HE EXPLAINED THEY ARE JUST TRYING TO GET AHEAD OF THE CURVE UNTIL YESTERDAY MANY MARKET ANALYSTS HAD EXPECTED THAT ONCE THE FED GOT THE FUNDS RATE TO 4 BOND INVESTORS MIGHT BREATHE A LITTLE EASIER BELIEVING THAT INFLATION HAD BEEN VANQUISHED BUT THE DECISION OF THE FED TO RAISE RATES YESTERDAY HAS CAUSED MANY OF THEM TO REVISE THEIR OUTLOOK MANY ON WALL STREET HADN'T EXPECTED THE FED TO MOVE UNTIL THE MAY 17 MEETING OF THE FEDERAL OPEN MARKET COMMITTEE ITS POLICYMAKING ARM NOW MANY OF THESE ANALYSTS BELIEVE THE FED WILL BOOST RATES YET AGAIN ON MAY 17 TO 4 AND CONTINUE INCHING HIGHER IN THE FOLLOWING MONTHS PEOPLE ARE STARTING TO PRICE A FUNDS RATE OF 45 OR WORSE BY YEAR END SAID MR COSTAS OF CS FIRST BOSTON WHAT WILL THAT MEAN FOR LONGTERM RATES MR COSTAS SAYS THAT THE NEXT PSYCHOLOGICAL WATERSHED WOULD BE A 30YEAR BOND YIELD OF 8 BUT THAT DOESN'T LOOK LIKE IT'S GOING TO HAPPEN QUITE YET WHAT BOND TRADERS DO FEAR HOWEVER IS A DOMINO EFFECT IN OTHER BOND MARKETS WHEN MONEY MANAGERS IN LESSLIQUID BOND MARKETS SUCH AS THOSE FOR DEVELOPINGNATION DEBT HAVE PROBLEMS SELLING THEIR HOLDINGS BECAUSE OF A SELLOFF THEY OFTEN ATTEMPT TO HEDGE THEIR LOSSES BY SELLING THEIR EASIESTTOSHED HOLDINGS NOTABLY US TREASURYS AFTER THE FIRST TWO RATE BOOSTS THIS WAS THE REACTION OF FUND MANAGERS STRUGGLING WITH SINKING PORTFOLIOS IN OTHER BOND MARKETS AND THE DEMISE OF HEAVILY LEVERAGED HEDGE FUNDS AND MONEY MANAGERS HOLDING EXOTIC BUT HARDTOSELL SECURITIES IN THE MORTGAGEBACKED AND DEVELOPINGNATION BOND MARKETS ACCELERATED THIS PROCESS IN THE MARKET FOR DEVELOPINGNATION DEBT THE LOSSES HAVE BEEN MASSIVE SINCE THE BEGINNING OF THE YEAR CERTAIN BRAZILIAN BONDS HAVE SWOONED ON FRIDAY BRAZIL COMPLETED A DEBT RESTRUCTURING PACKAGE THAT INVOLVED THE ISSUANCE OF CAPITALIZATION BONDS BUT THESE BONDS HAD BEEN TRADING IN THE WHENISSUED MARKET FOR SOME TIME ACCORDING TO MR FINNERAN OF TCW THE PRICE OF THESE BONDS HAS DROPPED MORE THAN 32 POINTS OR MORE THAN 320 FOR A 1000 BOND SINCE THE END OF JANUARY THERE ARE A NUMBER OF ECONOMIC REPORTS COMING UP THIS MONTH THAT BOND INVESTORS WILL BE WATCHING CLOSELY ONE OF THE MOST IMPORTANT NO DOUBT WILL BE THE PRELIMINARY FIGURES ON THE GROSS DOMESTIC PRODUCT WHICH ARE DUE APRIL 28 FOURTHQUARTER GDP WAS MUCH STRONGER THAN ANYONE EXPECTED SPARKING FEARS THAT A JUMP IN INFLATION COULD BE JUST AROUND THE CORNER MANY ECONOMISTS BELIEVE THE GROWTH IN GDP IN THE FIRST QUARTER WAS STRONG BUT NOT NEARLY AS STRONG AS THE FOURTH QUARTER'S 7 ANNUALIZED RATE STONE & MCCARTHY IS PREDICTING AN INCREASE OF 42 IN THE GDP FOR THE QUARTER BUT EVEN THAT MIGHT BE ENOUGH TO SPOOK INVESTORS SAYS MR CANAVAN IF YOU SEE A STRONG FIRSTQUARTER GDP EVEN JUST OVER 4 THAT COULD GET TRADERS REALLY NERVOUS AGAIN HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED APRIL 21 THE 13WEEK BILLS MATURE JULY 21 1994 AND THE 26WEEK BILLS MATURE OCT 20 1994 A WINDOW OF OPPORTUNITY FOR CORPORATE BORROWERS ABRUPTLY CLOSED AS BOND PRICES TUMBLED IN REACTION TO ANOTHER TIGHTENING OF US MONETARY POLICY NO NEW ISSUES WERE SOLD DURING THE SESSION LAST WEEK 327 BILLION OF CORPORATE DEBT WAS SOLD AS THE CORPORATEBOND MARKET SEEMED FINALLY TO BE RECOVERING AFTER THE FED'S LAST TIGHTENING IN LATE MARCH AS PRICES BEGAN WEAKENING YESTERDAY MARKET PARTICIPANTS FLOODED THE JUNKBOND MARKET WITH OFFERS TO SELL SECURITIES AS HAS BEEN THE CASE RECENTLY OFFERS TO BUY WERE HARD TO COME BY TRADERS SAID TRADERS ALSO SAID JUNKBOND MUTUAL FUNDS WERE SELLING TO FUND REDEMPTIONS SOME OF MY BUYERS THAT I HAD LAST WEEK ARE WILLING TO SELL THAT SAME MERCHANDISE THIS WEEK AT A LITTLE LOSS THAT TELLS ME THERE ARE SOME REDEMPTIONS GOING ON A TRADER SAID THE PRICES OF MANY JUNK BONDS ENDED DOWN ABOUT ONE POINT FOR THE DAY ACCORDING TO TRADERS MEANWHILE INVESTMENTGRADEBOND TRADING WAS VERY LIGHT WITH SPREADS UNCHANGED FROM FRIDAY BONDS OF DIGITAL EQUIPMENT CORP FELL IN REACTION TO A MOVE FRIDAY BY STANDARD & POOR'S TO DOWNGRADE THE SENIOR DEBT AND PLACE IT ON CREDITWATCH WITH NEGATIVE IMPLICATIONS THE PRICE OF DIGITAL'S 775 COUPON DEBENTURES MATURING IN 2023 SANK ABOUT 4 1/2 POINTS TO 82 3/4 TO YIELD 95 S&P DOWNGRADED ITS RATING ON DIGITAL'S SENIOR DEBT TO TRIPLEB FROM TRIPLEBPLUS IN A SEPARATE ACTION FRIDAY MOODY'S INVESTORS SERVICE INC PUT DIGITAL'S DEBT UNDER REVIEW FOR A POSSIBLE DOWNGRADE MARKET PARTICIPANTS SAID YIELDS OF SOME NEWER CORPORATE ISSUES DIDN'T RISE SIGNIFICANTLY DESPITE THE BROAD RISE IN GOVERNMENT SECURITIES YIELDS HUNTSMAN CORP'S FIRST MORTGAGE NOTES DUE 2004 FOR EXAMPLE WERE SOLD LAST WEEK AT PAR TO YIELD 11 THE NOTES WERE QUOTED YESTERDAY AT 99 TO YIELD 1116 TRADERS SAID SUCH NEW ISSUES WEREN'T DROPPING SHARPLY BECAUSE THEY WERE GETTING SPECIAL SUPPORT FROM DEALERS AND BECAUSE THEY CAME TO THE MARKET AT RELATIVELY CHEAP PRICES NEW ISSUE ACTIVITY IS EXPECTED TO BE SLOW FOR THE REST OF THIS WEEK MUNICIPAL BONDS WERE UNDERMINED BY THE FEDERAL RESERVE'S SURPRISE CREDIT TIGHTENING AND SOME MUNI SPECIALISTS SAY THE MARKET MAY SPIRAL DOWNWARD AGAIN LATE IN THE SESSION THE FLORIDA BOARD OF EDUCATION'S 5125 BONDS DUE 2022 WERE QUOTED ABOUT 5/8 LOWER ON THE DAY AT 83 1/4 YIELDING 636 THE FED'S TIGHTENING MODE HAS CAUSED TROUBLE FOR MUNIS AND THE OTHER US BOND MARKETS FOR MONTHS THE PREVIOUS TWO TIGHTENING MOVES IN FEBRUARY AND MARCH CAUSED MANY MUNI ISSUES TO REGISTER LOSSES OF MORE THAN 10 POINTS DURING THOSE TWO MONTHS THERE WAS A REBOUND RECENTLY THAT CAUSED BEARISH SENTIMENT TO DIMINISH SLIGHTLY IN THE HEAVILY OVERSOLD MARKET BUT NOW THAT THE FED HAS ANNOUNCED ANOTHER CREDIT TIGHTENINGAND SIGNALED A 25 BASISPOINT RISE IN THE TARGET FOR FEDERAL FUNDS TO 375 SELLERS ARE ATTACKING MUNIS AGAIN MORTGAGE SECURITIES WERE KNOCKED DOWN TOO THE TRADING STARTED UNREMARKABLY BUT WHEN THE FED ANNOUNCED IT WAS RAISING ITS KEY TARGET FOR SHORTTERM RATES PRICES HELD LOWER LEVELS BRIEFLY THEN FELL OUT WHEN BOND YIELDS RISE RAPIDLY MORTGAGES USUALLY GET HIT WORSE THAN TREASURYS AS INVESTORS TEND TO SHY AWAY FROM DEBT INSTRUMENTS WHOSE MATURITY CHANGES WITH RATES BUT AS WAS THE CASE WITH OTHER RECENT SELLOFFS THE PAIN CAME FROM A LACK OF BUYERS RATHER THAN ACTIVE SELLING YOU JUST DON'T HAVE ANY BUYERS IN DOWN MARKETS SAYS A PASSTHROUGH TRADER AT A PRIMARY DEALER HERE OTHER DEBT SECTORS MAY ENJOY A REPRIEVE FROM BARGAIN HUNTERS BUT MORTGAGES RARELY GET THAT BENEFIT HE SAYS BUT MORTGAGE BANKERS HAVE WATCHED RATES RISE TOO AND THEY CHANGED THEIR PATTERN OF SELLING BECAUSE THEY DON'T HAVE THAT MANY BONDS ANYMORE THE TRADER CONTINUES THEY CAN'T ALWAYS BE EXPECTED TO UNLOAD BONDS WHEN TREASURYS TANK IN OTHER WORDS MEANWHILE GINNIE MAE 8S FOR MAY DELIVERY WERE DOWN 29/32 AT 99 16/32 FREDDIE MAC GOLD 8S FOR MAY WERE DOWN 30/32 AT 99 20/32 AND FANNIE MAE 8S FOR MAY WERE DOWN 30/32 AT 99 16/32 SARAH BOWEN CONTRIBUTED TO THIS ARTICLE 9404190006 940419 LEISURE & ARTS THEATER A BIT OF DISNEYLAND COMES TO BROADWAY BY EDWIN WILSON NEW YORK A TEACUP THAT SINGS A CARPET THAT TURNS SOMERSAULTS A CANDELABRUM THAT DANCES A SOFT SHOE A WOODEN CABINET THAT SINGS OPERA KNIVES AND FORKS THAT PERFORM THE CANCAN YOU GUESSED IT WALT DISNEY HAS COME TO BROADWAY THE ARRIVAL OF THE STAGE VERSION OF BEAUTY AND THE BEAST AT THE PALACE THEATRE LAST NIGHT WAS MORE THAN THE OPENING OF ANOTHER SPLASHY MUSICAL IT WAS THE MOMENT WHEN THEMEPARK GLITZ AND EXPERTISE INTERSECTED WITH TRADITIONAL SHOW BUSINESS IN RETROSPECT THE WEDDING OF THE TWO WAS INEVITABLE BROADWAY HAD BEEN MOVING INEXORABLY TOWARD THE FANTASTIC AND THE SPECTACULAR IT BEGAN WITH CATS WHICH HAS AN UNMISTAKABLE AFFINITY WITH ANIMAL CHARACTERS IN ANIMATED CARTOONS AND MOVED TO MUSICALS WITH FALLING CHANDELIERS THE PHANTOM OF THE OPERA AND HELICOPTERS DESCENDING FROM THE SKIES MISS SAIGON PHANTOM IN FACT HAS THE SAME STORY AS BEAUTY AND THE BEAST AN UGLY OR MISSHAPEN MAN SEEKING LOVE PURSUES AN INNOCENT MAIDEN WHO IS AT FIRST REPULSED BY HIM BUT THEN SUCCUMBS TO HIS STRANGE APPEAL MEANWHILE WALT DISNEY CO HAS BEEN ENGAGED IN ALMOST EVERY FORM OF ENTERTAINMENT BUT THE THEATER AND ITS THEME PARKS HAVE EVEN VENTURED INTO THAT WITH ROBERT JESS ROTH THE DIRECTOR OF BEAUTY AND THE BEAST MOUNTING MINIMUSICALS SUCH AS A CHRISTMAS SHOW CALLED MICKEY'S NUTCRACKER WHEN THE DECISION CAME TO INVADE BROADWAY BEAUTY AND THE BEAST SEEMED THE OBVIOUS CHOICE THE ANIMATED FEATURE FILM HAS GROSSED 340 MILLION IN THREE YEARS AND HAS SPUN OFF SOUVENIRS A COMPACT DISK AND AN ICE SHOW IF EVER AN ENTERTAINMENT WAS PRESOLD THIS WAS IT BUT THE DISNEY PEOPLE DID NOT LEAVE MUCH TO CHANCE AT 12 MILLION BEAUTY AND THE BEAST IS THE MOST EXPENSIVE BROADWAY SHOW OF ALL TIME THE COMPANY'S CHIEF EXECUTIVE OFFICER MICHAEL EISNER AND DISNEY STUDIOS CHAIRMAN JEFFREY KATZENBERG HAVE BEEN DEEPLY INVOLVED IN THE SUPERVISION OF THE STAGE VERSION OF BEAUTY SO IF YOU COUNT A PORTION OF THEIR SALARIES IN THE COST THE FIGURE WOULD RUN CONSIDERABLY HIGHER THE END PRODUCT IS AN ODD AMALGAM OF SHOWY TECHNOLOGY A SOLID MUSICAL SCORE AND SIMPLISTIC STORYTELLING WHEN A PRINCE TERRENCE MANN FAILED TO TAKE AN OLD WOMAN IN FROM A STORM SHE TURNED HIM INTO A BEAST AND HIS SERVANTS INTO CLOCKS AND TEACUPS THE SPELL WOULD REMAIN IN FORCE UNTIL A YOUNG WOMAN TOLD HIM SHE LOVED HIM THE GIRL BELLE SUSAN EGAN FINDS HERSELF TRAPPED IN HIS CASTLE DISGUSTED BY HIS APPEARANCE AND HIS MANNERS BUT GRADUALLY SHE COMES TO ACCEPT AND EVEN TO LOVE HIM MEANWHILE GASTON BURKE MOSES HER VAINGLORIOUS ADMIRER FROM THE VILLAGE ALMOST KILLS THE BEAST BEFORE SHE REDEEMS HIM WITH A KISS THE STORY HAS ALL THE ELEMENTS OF THE CLASSIC FABLE INCLUDING ACCOMPANYING PRECEPTS SUCH AS DON'T JUDGE A BOOK BY ITS COVER AND LOVE CONQUERS ALL FOR THE MOST PART THE PERFORMERS HAVE BEEN DIRECTED BY MR ROTH TO MOVE NOT LIKE HUMAN BEINGS BUT LIKE LIFESIZE VERSIONS OF ANIMATEDCARTOON CHARACTERS THOUGH SEVERAL PERFORMERS RISE ABOVE THIS MECHANIZATION PARTICULARLY MR MOSES AS A HUMOROUS HEAVY AND MS EGAN WHO REMAINS REMARKABLY INGENUOUS IN THE FACE OF EVERYTHING THE SCENERY DESIGNED BY STAN MEYER COULD HARDLY BE CALLED TASTEFUL OR IMAGINATIVE BELLE'S HOME FOR INSTANCE A THATCHED COTTAGE WITH A WISHING WELL TO ONE SIDE LOOKS LIKE SOMETHING OUT OF A STOCKCOMPANY PRODUCTION OF HANSEL AND GRETEL OTHER VISUAL EFFECTS ARE EQUALLY UNCONVINCING WHEN THE BEAST VENTURES INTO THE WOODS TO RESCUE BELLE HE ENCOUNTERS FEARSOME WOLVES THE ONLY PROBLEM IS THAT THE WOLVES APPEAR TO BE SACKS FILLED WITH STRAW RATHER THAN FRIGHTENING ANIMALS AND EVEN THE YOUNGEST MEMBERS OF THE AUDIENCE DIDN'T BUY THAT ONE STILL THERE ARE PLENTY OF SCENIC WONDERS TOWARD THE END OF ACT ONE THE ANIMATED OBJECTS IN THE CASTLE WELCOME BELLE AS THEY PREPARE A FEAST FOR HER WITH THE SONG BE OUR GUEST THIS HOMAGE TO BUSBY BERKELEY PULLS OUT ALL THE STOPS IT OFFERS FAROUT COSTUMES BY ANN HOULDWARD A CASCADE OF STEPS DOWN WHICH DANCERS PARADE LIGHTS FLASHING TO BEAT THE BAND AND HUGE CHAMPAGNE BOTTLES SPOUTING SPARKS IT'S A CALCULATED SHOWSTOPPER USING EVERY TIMEHONORED TRICK IN THE BOOK TOWARD THE END WHEN THE BEAST IS ABOUT TO EXPIRE HE IS KISSED BY BELLE SUDDENLY HIS BODY LEVITATES REVOLVES A NUMBER OF TIMES IN MIDAIR AND FINALLY AMONG PUFFS OF SMOKE AND EXPLODING LIGHTS HE IS TRANSFORMED INTO THE PRINCE AS WITH THE MOVIE THE STRONGEST ELEMENT OF THE PRODUCTION IS THE SCORE ALAN MENKEN WROTE THE FILM MUSIC AND HOWARD ASHMAN CONTRIBUTED THE LYRICS UNFORTUNATELY ASHMAN DIED BEFORE THE STAGE VERSION WAS DEVELOPED AND SO MR MENKEN AND TIM RICE HAVE WRITTEN SEVEN NEW SONGS FOR THE SHOW THE MUSIC IS NEVERTHELESS ALWAYS SERVICEABLE AND IN SOME CASES GENUINELY ORIGINAL ONE SONG HUMAN AGAIN WAS WRITTEN FOR THE FILM BUT NOT USED THERE INCLUDED HERE IT GIVES THE SERVANTS IN THE CASTLE AN OPPORTUNITY TO EXPRESS THEIR LONGING TO BE HUMANS ONCE MORE IT'S A REFRESHING AS WELL AS MELODIC NUMBER IN ONE SENSE HOWEVER AESTHETIC CONSIDERATIONS ARE BESIDE THE POINT IT MATTERS NOT HOW SUCCESSFUL THE MUSIC THE PERFORMANCES THE SETS THE SPECIAL EFFECTS ARE IN THE EYES OF CRITICS THIS IS THEMEPARK ENTERTAINMENT ON BROADWAY AND AUDIENCES WILL NO DOUBT FLOCK TO IT AT THE PREVIEW PERFORMANCE I SAW THE AUDIENCE WHICH NATURALLY INCLUDED A FAIR NUMBER OF CHILDREN WERE PROPERLY DAZZLED BY THE PYROTECHNICS AND APPLAUDED WILDLY WHEN THE GOOD PEOPLE TRIUMPHED AND THE EVIL WERE VANQUISHED IT WAS MY IMPRESSION THAT THEY FELT THEY HAD GOTTEN THEIR 65 WORTH THE DISNEY ORGANIZATION MUST HAVE THIS IMPRESSION TOO AND IS SEEMINGLY CONFIDENT ABOUT A LONGTERM COMMITMENT TO BROADWAY IT RECENTLY PURCHASED THE NEW AMSTERDAM THEATRE THE BESTKNOWN OF SEVERAL LEGITIMATE HOUSES ON 42ND STREET THAT HAVE LONG STOOD EMPTY WITH A LOWINTEREST LOAN OF 21 MILLION FROM VARIOUS GOVERNMENT AGENCIES AND A PLEDGE TO SPEND 8 MILLION ITSELF DISNEY HAS PROMISED TO RESTORE THE THEATER TO ITS ORIGINAL GRANDEUR WHEN IT IS COMPLETED IN 1996 OR 1997 IT WILL BECOME THE HOME OF FUTURE DISNEY STAGE PRODUCTIONS BROADWAY HAS A LOT OF SINGING TEACUPS AND DANCING CANDELABRA TO LOOK FORWARD TO AS THE MILLENNIUM APPROACHES 9404190005 940419 BUSINESS BRIEF CONSECO INC INSURANCE HOLDING COMPANY TO BUY FIRM FOR 120 MILLION CONSECO INC SAID IT AGREED TO PAY ABOUT 120 MILLION TO ACQUIRE ZENITH NATIONAL INSURANCE CORP'S CALFARM LIFE INSURANCE UNIT THE INSURANCE HOLDING CONCERN SAID THE TENTATIVE PACT WITH WOODLAND HILLS CALIFBASED ZENITH IS SUBJECT TO SIGNING OF A DEFINITIVE AGREEMENT AND REGULATORY CLEARANCE THE PACT CALLS FOR ZENITH A SPECIALTY PROPERTYCASUALTY INSURER FOCUSED IN THE CALIFORNIA WORKERS' COMPENSATION BUSINESS TO RETAIN CALFARM LIFE'S GROUP HEALTH BUSINESS CALFARM HAD ABOUT 25 BILLION OF LIFE INSURANCE IN FORCE AT YEAR END SAID CONSECO OF CARMEL IND 9404190004 940419 WHO'S NEWS EIGHT EXECUTIVES WILL LEAVE SAFECARD IN SHAKEUP AT FIRM CHEYENNE WYO SAFECARD SERVICES INC SAID ITS PRESIDENT CHIEF OPERATING OFFICER AND SIX OTHER TOP EXECUTIVES ARE LEAVING THE COMPANY UNDER A SHAKEUP BY SAFECARD'S NEW CHAIRMAN PAUL G KAHN NAMED TO SAFECARD'S TOP JOB IN DECEMBER SAID THE REVAMPING WILL REPLACE A LEVEL OF MANAGEMENT AT THE CREDITCARD SERVICES CONCERN A ONETIME CHARGE OF ABOUT 35 MILLION IN THE COMPANY'S FISCAL SECOND QUARTER WILL COVER SEVERANCE COSTS AND THE CLOSING OF SAFECARD'S OFFICE IN FORT LAUDERDALE FLA IN LAST YEAR'S SECOND QUARTER ENDED APRIL 30 SAFECARD REPORTED EARNINGS OF 85 MILLION OR 29 CENTS A SHARE THE COMPANY'S OPERATING EARNINGS SLIPPED DURING THE MOST RECENT QUARTER IN PART BECAUSE OF THE COSTS OF A CONTINUING LEGAL BATTLE WITH PETER HALMOS A SAFECARD COFOUNDER AND ITS FORMER CHAIRMAN MR HALMOS HAS SUED THE COMPANY FOR BREACH OF CONTRACT WHILE SAFECARD HAS ACCUSED MR HALMOS OF REAPING TENS OF MILLIONS OF DOLLARS IN INSIDERTRADING PROFITS IN A STATEMENT MR HALMOS DISMISSED THE REORGANIZATION PLAN SAFECARD DECLINED TO RESPOND TO MR HALMOS'S STATEMENT GONE UNDER MR KAHN'S NEW PLAN ARE WM STALCUP JR SAFECARD'S PRESIDENT GERALD R CAHILL CHIEF OPERATING OFFICER AND JOHN BOCHAK SENIOR EXECUTIVE VICE PRESIDENT OF OPERATIONS NONE COULD BE REACHED FOR COMMENT RICHARD M INTERDONATO 45 YEARS OLD FORMERLY A SENIOR VICE PRESIDENT OF AMERICAN EXPRESS TRAVEL RELATED SERVICES WAS NAMED SAFECARD'S EXECUTIVE VICE PRESIDENT OPERATIONS G THOMAS FRANKLAND 47 FORMERLY A PARTNER IN THE NEW YORK OFFICE OF PRICE WATERHOUSE WAS NAMED VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER 9404190003 940419 POLITICS & POLICY ENVIRONMENTALISTS FAULT CLINTON PLAN ON EMISSIONS TIED TO GLOBAL WARMING BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION'S PLAN TO REDUCE GREENHOUSEGAS EMISSIONS THROUGH LARGELY VOLUNTARY MEASURES WILL FALL FAR SHORT OF ITS TARGET ACCORDING TO SEVERAL ENVIRONMENTAL GROUPS THE GROUPS ECHOING WORRIES VOICED PRIVATELY BY MANY IN INDUSTRY ISSUED A REPORT ANALYZING NEWLY AVAILABLE DATA ABOUT THE ASSUMPTIONS BEHIND THE ADMINISTRATION'S PLAN TO COMBAT EMISSIONS BELIEVED TO CAUSE GLOBAL WARMING PRESIDENT CLINTON PLEDGED A YEAR AGO THIS WEEK TO REDUCE US GREENHOUSEGAS EMISSIONS TO 1990 LEVELS BY THE YEAR 2000 AND LAST FALL HE ISSUED A GROUP OF PROPOSALS TO FULFILL THAT PLEDGE TO CELEBRATE EARTH DAY THIS WEEK THE ADMINISTRATION WILL PUBLICIZE VARIOUS PROGRAMS THAT UTILITIES VOLUNTARILY HAVE INITIATED TO MEET THE GREENHOUSE PLEDGE THE ENVIRONMENTALISTS' NEW REPORT WRITTEN BY SENIOR NATURAL RESOURCES DEFENSE COUNCIL SCIENTIST DANIEL LASHOFF CONTENDS THAT THE CLINTON PLAN WOULD ACHIEVE ONLY ONETHIRD THE REDUCTIONS NECESSARY TO REDUCE PROJECTED GREENHOUSEGAS EMISSIONS TO 1990 LEVELS BY THE END OF THE CENTURY THE REPORT WAS ISSUED BY THE COUNCIL THE ENVIRONMENTAL DEFENSE FUND THE SIERRA CLUB AND THE UNION OF CONCERNED SCIENTISTS AMONG OTHER GROUPS THE REPORT SAYS THE ADMINISTRATION ASSUMED THAT OIL PRICES WOULD RISE HELPING TO STEM CONSUMPTION BUT IN FACT THEY HAVE FALLEN IT ALSO SAYS THE ADMINISTRATION ARBITRARILY ASSUMED SUBSTANTIAL INCREASES IN AUTOMOBILEFUEL EFFICIENCY EVEN THOUGH THE FEDERAL GOVERNMENT HASN'T REQUIRED THEM MOREOVER THE REPORT ARGUES QUICK CONGRESSIONAL APPROVAL AND IMPLEMENTATION OF CERTAIN ENERGYEFFICIENCY PROGRAMS INCLUDED IN THE CLIMATE PLAN IS EXTREMELY UNLIKELY INDUSTRY REPRESENTATIVES ARE RELUCTANT TO QUESTION WHETHER THE GREENHOUSE PLEDGE CAN BE MET FOR FEAR OF INVITING HARSHER ADMINISTRATION MEASURES BUT PRIVATELY MANY SAY THEY HAVE SERIOUS DOUBTS WHILE ENVIRONMENTALISTS SAY THE PROJECTED SHORTFALL DEMONSTRATES A NEED FOR TOUGHER MEASURES SUCH AS RAISING FUELEFFICIENCY STANDARDS INDUSTRY'S DISSENT IS BASED ON THE PREMISE THAT THE PLEDGE WAS IMPRACTICAL IN THE FIRST PLACE ONE INDUSTRY SPOKESMAN WHO DECLINED TO BE IDENTIFIED SAID IF THE ECONOMY DOES WELL IT'S GOING TO BE HARDER TO MEET THE TARGETS BECAUSE DEMAND FOR ELECTRIC GENERATION WILL INCREASE MANY UTILITY EXECUTIVES HAVE SAID THAT THE PLEDGE WOULD BE MUCH EASIER TO MEET IF THEY COULD COUNT REDUCTIONS ACHIEVED IN PLANTS OVERSEAS AN OPTION THAT WAS CONSIDERED BUT REJECTED BY THE CLINTON ADMINISTRATION EMISSIONS WOULD BE EASIER TO REDUCE OUTSIDE THE US BECAUSE OVERSEAS PLANTS ARE DIRTIER REFLECTING LOWER ENVIRONMENTAL STANDARDS ABROAD THEY DO DISAGREE WITH OUR FORECASTS BRUCE HUMPHREY A SPOKESMAN FOR THE EDISON ELECTRIC INSTITUTE SAID OF THE CLINTON PLAN'S PROJECTIONS FOR ELECTRICITY CONSUMPTION ALTHOUGH THE PLAN PREDICTS ANNUAL INCREASES OF 05 HE SAID HIS GROUP PUTS THAT FIGURE AT 19 BUT MR HUMPHREY ADDED THAT HIS GROUP HAS DONE NO ANALYSIS OF THE PLAN AS A WHOLE WHICH HE TERMED A POSITIVE STEP KATHLEEN MCGINTY DIRECTOR OF THE WHITE HOUSE OFFICE ON ENVIRONMENTAL POLICY SAID YESTERDAY WE ARE VIGOROUSLY IMPLEMENTING THE PROVISIONS THAT WE CALLED FOR IN THE PLAN AND WILL CONTINUE TO REVIEW PROGRESS THAT WE'RE MAKING SHE ADDED IT'S NOT CLEAR WE NEED TO DO MORE TO MEET THE 2000 GOAL POINTING OUT THAT MANY VARIABLES AFFECTING THE CLIMATE PLAN COULD CHANGE OF THE OILPRICE RISE FOR EXAMPLE IT'S TOO EARLY FOR US TO KNOW IF THIS IS A BLIP ON THE RADAR SCREEN OR A TREND SHE SAID 9404190002 940419 CREDIT RATINGS KMART CORP DEBT TOTALING 37 BILLION DOWNGRADED BY S&P NEW YORK STANDARD & POOR'S CORP LOWERED ITS RATINGS ON 37 BILLION OF KMART CORP DEBT CITING CONCERNS ABOUT THE PROFITABILITY OF THE CORE DISCOUNT STORES S&P NOTED THAT KMART'S FINANCIAL MEASURES HAVE BEEN SLOWLY DETERIORATING SINCE 1988 THE YEAR JOSEPH E ANTONINI TOOK OVER AS CHAIRMAN FOR EXAMPLE RETURN ON PERMANENT CAPITAL A KEY MEASURE OF PROFITABILITY IS EXPECTED TO DROP TO ABOUT 10 FROM ITS 1988 LEVEL OF 17 S&P SAID S&P LOWERED ITS RATINGS ON KMART'S SENIOR DEBT TO TRIPLEBPLUS FROM SINGLEA SENIOR RULE 415 SHELF REGISTERED DEBT TO PRELIMINARY TRIPLEBPLUS FROM PRELIMINARY SINGLEA PERCS TO TRIPLEBPLUS FROM SINGLEA AND COMMERCIAL PAPER TO A2 FROM A1 MR ANTONINI IS SLIGHTLY MORE THAN HALF FINISHED WITH HIS FIVEYEAR 35 BILLION PROGRAM TO REDO THE DISCOUNT STORES WHILE SALES INDEED ARE HIGHER AT THE NEWMODEL STORES WITH WIDER AISLES AND UPGRADED MERCHANDISE S&P SAID IT IS CONCERNED ABOUT THE ULTIMATE DEGREE OF IMPROVEMENT IN PROFITABILITY GIVEN THE EXTREMELY COMPETITIVE NATURE OF THE DISCOUNTING BUSINESS MOODY'S INVESTORS SERVICE INC ALSO LOWERED KMART'S DEBT RATINGS LAST MONTH SAYING COMPETITION IS HAMPERING THE COMPANY'S RENOVATION EFFORTS LAST MONTH SEARS ROEBUCK & CO UNSEATED KMART FOR THE FIRST TIME IN TWO YEARS TO RECLAIM ITS SPOT AS THE NATION'S SECONDLARGEST RETAILER BEHIND WALMART STORES INC S&P ALSO SAID IT IS CONCERNED ABOUT KMART'S ABILITY TO SUCCESSFULLY EXECUTE ITS MERCHANDISING STRATEGY WHICH FOCUSES ON APPAREL MR ANTONINI WHO ROSE UP THROUGH THE RANKS ON THE APPAREL SIDE OF THE BUSINESS HAS MADE A BIG PUSH TO SHED THE ACKNOWLEDGED POLYESTER PALACE IMAGE AND SELL CLOTHES TO WORKING WOMEN 9404190001 940419 CORRECTIONS & AMPLIFICATIONS ALEXANDER BLANTON IS AN ANALYST AT INGALLS & SNYDER HIS NAME WAS GIVEN INCORRECTLY IN YESTERDAY'S ABREAST OF THE MARKET COLUMN RICHARD C LEONE WAS APPOINTED TO THE BOARD OF THE PORT AUTHORITY OF NEW YORK & NEW JERSEY BY NEW JERSEY GOV THOMAS KEAN IN 1988 AN ITEM IN FRIDAY'S WHO'S NEWS COLUMN INCORRECTLY SAID THAT MR LEONE WAS APPOINTED BY GOV JIM FLORIO 9404190154 940309 SHAREHOLDER SUITS BESET MORE SMALL COMPANIES BY BRENT BOWERS AND UDAYAN GUPTA STAFF REPORTERS OF THE WALL STREET JOURNAL WHEN A SMALL OR MIDSIZE COMPANY REPORTS DISAPPOINTING EARNINGS THESE DAYS A CLASSACTION SHAREHOLDER LAWSUIT MAY NOT BE FAR BEHIND SCOURING THE MEDIA FOR LOWERTHANPROJECTED EARNINGS A SMALL NUMBER OF LAW FIRMS AND THEIR PROFESSIONAL PLAINTIFFS WHO OWN SHARES IN MANY COMPANIES FILE COMPLAINTS THAT TYPICALLY ALLEGE THE DEFENDANT COMPANY FRAUDULENTLY WITHHELD OR MISREPRESENTED IMPORTANT INFORMATION THEY OFTEN TARGET SMALL OR FASTGROWING COMPANIES EXACTLY THE ONES THAT CAN LEAST AFFORD THE PAIN IN THE 1980S AND EARLY 1990S MANY SHAREHOLDER SUITS TOOK AIM AT LARGE COMPANIES INVOLVED IN SPECTACULAR TAKEOVERS AND MERGERS AS WELL AS THOSE AFFECTED BY THE COLLAPSE OF THE JUNKBOND MARKET NOW LAWYERS ARE FOCUSING ON SMALLER COMPANIES BECAUSE THEY'RE MORE LIKELY TO SHOW BIG SWINGS IN THEIR STOCK PRICES SAYS JAMES NEWMAN EDITOR AND PUBLISHER OF SECURITIES CLASS ACTION ALERT A NEWSLETTER BASED IN CRESSKILL NJ IN ADDITION LAW FIRMS SHY AWAY FROM HUGE CORPORATIONS BECAUSE SHAREHOLDERNOTIFICATION REQUIREMENTS NOW CAN COST MORE THAN 1 MILLION IN MAILINGS ALONE HE ADDS IN A SURVEY OF 212 COMPANIES RELEASED LAST WEEK BY THE NATIONAL VENTURE CAPITAL ASSOCIATION MORE THAN ONE IN SIX YOUNG PUBLICLY TRADED COMPANIES SAID THEY HAD BEEN DEFENDANTS IN SUCH SUITS SOME MORE THAN ONCE THE SUITS MOST OF WHICH ARE STILL PENDING HAVE ALREADY EATEN UP AN AVERAGE OF 1055 HOURS OF MANAGEMENT TIME EACH AND 692000 IN LEGAL FEES THE CLASSACTION NEWSLETTER ESTIMATES THAT TOTAL CASH SETTLEMENTS OF SHAREHOLDER CLASSACTION LAWSUITS AGAINST COMPANIES OF ALL SIZES NEARLY QUINTUPLED TO 155 BILLION IN 1992 FROM 324 MILLION IN 1988 IN THE SAME PERIOD THE NUMBER OF SUITS SETTLED JUMPED TO 144 FROM 53 AND THE AVERAGE CASH SETTLEMENT INCREASED TO 108 MILLION FROM 61 MILLION THESE SUITS ARE A MAJOR THREAT TO ENTREPRENEURIAL COMPANIES SAYS PETER BEHRENDT CHIEF EXECUTIVE OFFICER OF EXABYTE CORP A LONGMONT COLO MAKER OF COMPUTERDATA STORAGE DEVICES IN 1992 EXABYTE WAS SUED AFTER IT REPORTED THAT ITS THIRDQUARTER EARNINGS WOULD BE LOWER THAN ANALYSTS' PROJECTIONS BECAUSE OF THE INTRODUCTION OF A NEW PRODUCT IT SAYS AND ITS SHARE PRICE DROPPED TO 14 FROM 23 OVER THE NEXT TWO WEEKS EIGHT SUITS WERE FILED AGAINST THE COMPANY AND ITS OFFICERS AND CONSOLIDATED INTO ONE WITH CHARGES RANGING FROM SECURITIES VIOLATIONS TO INSIDER SELLING AND ALTHOUGH THE CASE WAS DISMISSED BY A JUDGE IN JUNE 1993 THE REPERCUSSIONS HAVE BEEN WIDESPREAD MR BEHRENDT SAYS THE COMPANY HAS SPENT MORE THAN 100000 IN LEGAL COSTS ITS 1994 LIABILITY INSURANCE PREMIUMS HAVE MORE THAN DOUBLED OVER 1992 RATES AND IT HAS HAD A DIFFICULT TIME RECRUITING NEW BOARD MEMBERS AND SENIOR EXECUTIVES WE'RE AFRAID TO TALK ABOUT THE UPSIDE SAYS MR BEHRENDT ABOUT THE COMPANY'S PROSPECTS IN THE COMPANY'S UPCOMING ANNUAL REPORT FOR 1993 HE SAYS THERE ISN'T A SINGLE LINE THAT SAYS WHAT WE'RE AIMING FOR WE'RE NOT MAKING ANY PROJECTIONS BECAUSE BY THEIR VERY NATURE WE COULD BE WRONG TO BE SURE SOME COMPANIES DO GIVE FALSE INFORMATION TO THEIR SHAREHOLDERS AND THERE IS NO WAY THE SECURITIES AND EXCHANGE COMMISSION CAN GO AFTER EVERYBODY THEY NEED THE HELP OF THE PRIVATE BAR SAYS BORIS FELDMAN A PARTNER WITH WILSON SONSINI GOODRICH & ROSATI IN PALO ALTO CAL WHICH HAS REPRESENTED THE DEFENSE IN ABOUT 75 CLASSACTION SHAREHOLDER SUITS THE DIFFICULTY COMES IN SEPARATING LEGITIMATE FROM MERITLESS CASES HE SAYS BUT THE IMPACT OF THESE SHAREHOLDER CLASS ACTIONS GOES BEYOND THOSE BUSINESSES THAT TAKE DIRECT HITS FULLY 71 OF THOSE POLLED IN THE VENTURE CAPITAL SURVEY SAID THEY WERE MORE RELUCTANT TO DISCUSS COMPANY PERFORMANCE WITH ANALYSTS 61 REPORTED INCREASED LIABILITYINSURANCE COSTS AND 30 SAID THEY HAD DIFFICULTY RETAINING OUTSIDE DIRECTORS SOME SMALLCOMPANY EXECUTIVES ARE FIGHTING BACK AT THE ADVICE OF THEIR LAWYERS ENTREPRENEURS AND DIRECTORS ARE DISCUSSING POTENTIAL PROBLEMS IN THEIR PUBLIC DOCUMENTS MORE FULLY WHILE TONING DOWN THE HYPE IN THEIR DISCUSSIONS WITH ANALYSTS AND THEY'RE BRINGING IN OUTSIDE AUDITORS MORE FREQUENTLY THE LEGAL SYSTEM IS ALSO GIVING THEM SOME HELP JUDGES ARE CRACKING DOWN ON FRIVOLOUS SHAREHOLDER LAWSUITS THROWING OUT AS MANY AS 40 ACCORDING TO BOB MEDNICK A PARTNER AT ARTHUR ANDERSEN IN CHICAGO BUT ONCE A LAWSUIT GOES TO COURT THE VAST MAJORITY OF DEFENDANTS END UP PAYING MILLIONS IN SETTLEMENTS TO ESCAPE YEARS OF COSTLY LITIGATION AND TO SHIELD THEMSELVES FROM LIABILITY EXPOSURE OF CASES SETTLED IN THE VENTURE CAPITAL SURVEY FOR EXAMPLE DEFENDANTS SAID THEY PAID AN AVERAGE OF 45 MILLION WITH 39 OF THAT GOING TO THE PLAINTIFFS' LAW FIRMS THE SHAREHOLDERS CRITICS SAY RECEIVE JUST PENNIES ON THE DOLLAR FROM THESE HUGE SETTLEMENTS IF YOU TALK TO ANYBODY IN SILICON VALLEY YOU'LL SEE THAT THIS IS AN ENORMOUS ISSUE PERHAPS THE NO 1 PUBLICPOLICY ISSUE SAYS JOHN ENDEAN VICE PRESIDENT FOR POLICY AT THE AMERICAN BUSINESS CONFERENCE WHICH REPRESENTS THE CHIEF EXECUTIVES OF 100 OF THE COUNTRY'S FASTESTGROWING COMPANIES IN JANUARY ARTHUR LEVITT CHAIRMAN OF THE SECURITIES AND EXCHANGE COMMISSION ANNOUNCED THAT THE SEC WOULD BECOME MORE ACTIVE IN TRYING TO CURB UNNECESSARY SHAREHOLDER LAWSUITS THIS RUNTOTHECOURTHOUSE PHENOMENON NEEDS TO BE EXAMINED MR LEVITT SAID IN A SPEECH IN SAN DIEGO AND SOMETIME NEXT WEEK SENS CHRISTOPHER DODD D CONN AND PETE DOMENICI R NM PLAN TO INTRODUCE LEGISLATION TO CURTAIL CLASSACTION LITIGATION ABUSES ONE CORPORATION LOBBYING HARD FOR REFORM IS ADAPTEC CORP OF MILPITAS CALIF WHICH AGREED TO PAY 43 MILLION IN 1993 TO SETTLE A SUIT BROUGHT BY THE SAN DIEGO FIRM OF MILBERG WEISS BERSHAD HYNES & LERACH MILBERG WEISS IS KNOWN AS THE KING OF CLASSACTION SECURITIES LAWSUITS SECURITIES CLASS ACTION ALERT SAYS THAT LAST YEAR THE FIRM INITIATED 40 SUCH COMPLAINTS MORE THAN ANY OTHER FIRM FORBES MAGAZINE ESTIMATED RECENTLY THAT THE FIRM'S SAN DIEGO OFFICE HAD GENERATED MORE THAN 90 MILLION IN FEES FROM SHAREHOLDER CLASSACTION SUITS OVER THE PAST FIVE YEARS IT'S EXTORTION FUMES ADAPTEC'S CHAIRMAN JOHN ADLER HIS COMPANY WHICH MAKES COMPUTER HARDWARE AND SOFTWARE HAS BEEN PROFITABLE EVERY QUARTER SINCE IT WENT PUBLIC IN 1986 HE SAYS AND FOR SEVERAL YEARS IT MET EVERY EARNINGS PROJECTION IT MADE BUT IN THE QUARTER ENDED DECEMBER 1990 PROFIT FELL SHORT OF EXPECTATIONS AND ADAPTEC WAS SUED THE SUIT WAS A BLANKET FISHING EXPEDITION THEY ACCUSED US OF FRAUD AND LYING AND CHEATING SAYS MR ADLER TO COMPLY WITH ALL THE REQUESTS FOR INFORMATION HE SAYS ADAPTEC PRODUCED 1500 BOXES OF DOCUMENTS FINALLY AFTER SPENDING MORE THAN 1 MILLION IN LEGAL FEES IT SETTLED WHILE ADAPTEC RECOVERED FROM ITS LEGAL SKIRMISHES PROVIDENTIAL CORP A SAN FRANCISCO FINANCIAL SERVICES COMPANY HASN'T THE COMPANY WHICH SELLS REVERSE MORTGAGES TO MOSTLY ELDERLY HOMEOWNERS WENT PUBLIC IN 1992 AND ITS STOCK SOON WAS AN IMPRESSIVE PERFORMER REACHING A HIGH OF 27 A SHARE BUT AN ANNOUNCEMENT BY THE SEC THAT IT WAS LOOKING INTO PROVIDENTIAL CORP'S ACCOUNTING METHODS SENT THE STOCK PLUMMETING AN AVALANCHE OF SHAREHOLDER SUITS FOLLOWED WE GOT SUED SIX TIMES IN 24 HOURS SAYS WILLIAM TEXIDO ITS CHIEF EXECUTIVE OFFICER THE COMPANY TRIED TO PERSUADE THE SEC THAT IT HAD MISINTERPRETED PROVIDENTIAL'S BUSINESS AND ASKED IT TO RECONSIDER BUT THE LAWSUITS WENT ON PROVIDENTIAL SAYS ITS BUSINESS WAS AT A STANDSTILL PROVIDENTIAL'S OFFER TO SETTLE WAS REJECTED BY THE PLAINTIFFS WHEN THE SEC EVENTUALLY REVERSED ITS DECISION THE SUITS WERE DROPPED BUT THE COMPANY HASN'T RECOVERED A NEW SET OF INVESTORS HAS TAKEN CONTROL OF THE COMPANY AND SAYS MR TEXIDO THEY'RE TRYING TO FIGURE OUT WHAT TO DO LEGENT COMPUTER A VIENNA VA SOFTWARE FIRM ALSO GOT SUED WITHIN HOURS OF ACKNOWLEDGING LAST JULY THAT IT WOULD HAVE QUARTERLY EARNINGS LOWER THAN EXPECTED AND A 60 DROP IN ITS STOCK PRICE OVER THE EIGHT TO 10 WEEKS FOLLOWING THE ANNOUNCEMENT LEGENT FOUND ITSELF PROVIDING 290000 PAGES OF DOCUMENTS TO RESPOND TO PLAINTIFFS' SUBPOENAS THEN 20 EMPLOYEES EACH SPENT A DAY ANSWERING QUESTIONS FROM THE PLAINTIFFS' LAWYERS AS THE DIRECTION OF THE CASE BECAME CLEARER WE BEGAN TO SPEND MORE MONEY ON OUTSIDE COUNSEL RECALLS JOHN BURTON LEGENT'S PRESIDENT AND MORE SENIOR EXECUTIVES BEGAN TO FOCUS ON THE SUIT LEGENT'S CHIEF FINANCIAL OFFICER MR BURTON SAYS WAS SPENDING NEARLY 90 OF HIS TIME TO PREPARE A DEFENSE THE COMPANY EVEN STAGED A MOCK TRIAL TO PREPARE AS THE TRIAL DATE CAME CLOSER LEGENT SAYS IT TRIED TO SETTLE BUT THE PLAINTIFFS' LAWYERS WANTED AN EGREGIOUS AMOUNT FOR SOMETHING WE DIDN'T DO SAYS MR BURTON IN COURT A FEDERAL JUDGE DISMISSED THE CHARGES AGAINST LEGENT BUT THE SUIT TOOK ITS TOLL SAYS MR BURTON IT COST LEGENT NEARLY 2 MILLION IN LEGAL FEES AND SEVERAL MILLIONS IN SOCALLED SOFT DOLLARS WILLIAM LERACH WHO RUNS THE MILBERG WEISS SAN DIEGO OFFICE SAYS HE IS PROTECTING THE RIGHTS OF SHAREHOLDERS WHO GET BLINDSIDED BY UNEXPECTED BAD NEWS HE REJECTS MR ADLER'S ACCUSATIONS SAYING THE ADAPTEC CEO DOESN'T WANT TO BE CALLED TO ACCOUNT HE DECLINES TO SAY HOW MUCH HIS FIRM MAKES IN FEES FROM SHAREHOLDER SUITS AND VOWS TO FIGHT THE DODDDOMENICI BILL TO HIS DYING BREATH THE BILL WOULD GRANT GOVERNMENT IMMUNITY TO ACCOUNTANTS A SHOCKING DEPARTURE FROM THEIR HISTORIC RESPONSIBILITIES HE SAYS AND IT WOULD SO ENCUMBER AND COMPLICATE CLASSACTION PROCEDURES THAT THERE WOULD NO LONGER BE AN EFFECTIVE REMEDY FOR DEFRAUDED INVESTORS ACCOUNTANTS PERHAPS UNDERSTANDABLY DISPUTE THAT VIEW SAYS MR MEDNICK OF ARTHUR ANDERSEN THESE SUITS AREN'T BROUGHT BY INVESTORS THEY'RE BROUGHT BY LAWYERS SEE RELATED LETTER LETTERS TO THE EDITOR CLASSACTION LAWYERS ARE UNFAIRLY SMEARED WSJ APRIL 19 1994 SEE RELATED LETTERS LETTERS TO THE EDITOR SHAREHOLDER SUITS ARE GETTING RESULTS WSJ APRIL 22 1994 9403090142 YY94 MM04 9404190037 940317 SAFETY QUIZ INSURANCECLAIMS DATA DON'T SHOW ADVANTAGE OF SOME AUTO DEVICES AIR BAGS AND ANTILOCK BRAKES WERE EXPECTED TO PAY OFF IN FEWER INJURIES REPAIRS TWO STUDIES RAISE QUESTIONS BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT IN THE PURSUIT OF A SAFER CAR CONSUMERS WILL FORK OVER AN EXTRA SEVERAL HUNDRED DOLLARS FOR AIR BAGS AND ANTILOCK BRAKES INSURERS EGG THEM ON BY OFFERING DISCOUNTS AUTO COMPANIES MEANWHILE HAVE POURED BILLIONS INTO DEVELOPING MAKING AND HEAVILY PROMOTING THE NEW SAFETY SYSTEMS BUT SO FAR THERE'S NO DEMONSTRABLE PAYOFF IN TERMS OF FEWER ACCIDENTS AND INJURIES AND LOWER REPAIR BILLS THE STATISTICS AREN'T THERE AND NO ONE IS SURE WHY THAT AIR BAGS SAVE LIVES IN COLLISIONS IS UNDISPUTED FEDERAL REGULATIONS REQUIRE ALL NEW CARS TO BE EQUIPPED WITH DUAL AIR BAGS BY 1997 TO PROTECT THE DRIVER AND THE FRONTSEAT PASSENGER THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION HAD CONCLUDED THAT THE CHANCE OF A SEATBELTED DRIVER'S DEATH IN AN ACCIDENT WAS REDUCED BY 50 IN A CAR EQUIPPED WITH A DRIVER'SSIDE AIR BAG COMPARED WITH 45 FOR A SEATBELTED DRIVER WITH NO AIR BAG WHAT IS UNCLEAR IS HOW MUCH PROTECTION AIR BAGS OFFER FROM INJURIES SHORT OF DEATH BY ANALYZING INSURANCE DATA TWO VIRGINIA COMMONWEALTH UNIVERSITY PROFESSORS HAVE FOUND THAT OWNERS OF 31 MODELS OF CARS EQUIPPED WITH AIR BAGS FILED MORE PERSONALINJURY CLAIMS THAN OWNERS OF LIKE CARS WITHOUT AIR BAGS AS FOR ESTIMATING THE SAFETY BENEFITS OF ANTILOCK BRAKES THE FEDERAL HIGHWAY TRAFFIC SAFETY AGENCY SAYS IT HAS INSUFFICIENT DATA THE HIGHWAY LOSS DATA INSTITUTE WHICH REPRESENTS INSURANCE COMPANIES ESTIMATES THAT 10 MILLION CARS ON THE ROAD IN THE US ARE EQUIPPED WITH THE COMPUTERASSISTED BRAKES THAT HELP DRIVERS KEEP CONTROL DURING SKIDS BUT IN JANUARY THAT GROUP RELEASED A STUDY CONCLUDING THAT THE COMPUTERASSISTED BRAKING SYSTEMS AREN'T REDUCING EITHER THE FREQUENCY OR THE COST OF CRASHES THAT RESULT IN INSURANCE CLAIMS FOR VEHICLE DAMAGE NEITHER STUDY IS COMPREHENSIVE NOR CONCLUSIVE ON ITS OWN THE STUDY OF ANTILOCK BRAKES FOR EXAMPLE DOESN'T TAKE INTO ACCOUNT THE FREQUENCY OR SEVERITY OF INJURIES THE AIRBAG STUDY DOESN'T MEASURE THE SERIOUSNESS OR CAUSE OF INJURIES INDEED THE AIR BAGS THEMSELVES MAY HAVE CAUSED SOME BUT IT COMES AS UNWELCOME NEWS THAT NEITHER STUDY SHOWS A DRAMATIC DROP IN THE FREQUENCY OF THE MEASURED CLAIMS ON VEHICLES OUTFITTED WITH THE SAFETY EQUIPMENT WE TOOK THE ANTILOCKBRAKING SYSTEM STUDY VERY SERIOUSLY SAYS THOMAS CARR MANAGER OF REGULATORY LIAISON FOR THE AMERICAN AUTOMOBILE MANUFACTURERS ASSOCIATION WHICH REPRESENTS DETROIT'S BIG THREE IT WAS AN ASTOUNDING STATEMENT TO MAKE SOME INSURANCEINDUSTRY SPOKESMEN SAY THEY AREN'T SURPRISED AT THE STUDIES EVEN THOUGH MANY INSURERS DISCOUNT PORTIONS OF MEDICAL AND PERSONALINJURY PREMIUMS BY AS MUCH AS 40 ON CARS EQUIPPED WITH BOTH AIR BAGS AND ANTILOCK BRAKES SOME STATES REQUIRE INSURANCE DISCOUNTS FOR VEHICLES WITH AIR BAGS AND FLORIDA AND NEW YORK REQUIRE DISCOUNTS FOR ANTILOCK BRAKES IT MAKES SENSE THAT AIR BAGS WOULD GENERATE LOWER LOSSES AND THEREFORE SUPPORT LOWER PREMIUMS SAYS MICHAEL CRONIN PRODUCTDEVELOPMENT MANAGER FOR BANKERS INSURANCE CO IN ST PETERSBURG FLA BUT THERE'S LITTLE FACT TO BACK THAT INTUITION AND AS FOR ANTILOCK BRAKES WE NEVER FELT THERE WAS ANY STRONG EVIDENCE THAT SHOWED IT REDUCES THE NUMBER OF ACCIDENTS SAYS DAVID HURST A SPOKESMAN FOR STATE FARM MUTUAL AUTOMOBILE INSURANCE CO WE OFFER DISCOUNTS ONLY BECAUSE WE'RE SUPPOSED TO NOT BECAUSE WE FEEL THEY'RE JUSTIFIED WE STILL THINK THE ANTILOCKBRAKE TECHNOLOGY IS GREAT SAYS DAVID VAN SICKLE DIRECTOR OF AUTOMOTIVE ENGINEERING AT AMERICAN AUTOMOBILE ASSOCIATION ONE OF THE NATION'S BIGGEST AUTO INSURERS BUT HE ADDS A LOT HAS TO DO WITH WHETHER DRIVERS ARE APPROPRIATELY TRAINED TO OPERATE THEM THE INSURERS MAY HAVE A POINT CAR MAKERS SAY DRIVERS ACCUSTOMED TO REGULAR BRAKES TYPICALLY PUMP THE BRAKE PEDAL TO REGAIN CONTROL IF THE CAR GOES INTO A SKID THAT'S THE WRONG THING TO DO WITH ANTILOCK BRAKES IN A SKID THE DRIVER SHOULD APPLY STEADY PRESSURE TO THE BRAKE PEDAL AND LET THE ANTILOCK SYSTEM TAKE OVER PUMPING THE PEDAL CONFUSES ANTILOCK BRAKES ALL AUTO MAKERS PUT INSTRUCTIONS ON ANTILOCK BRAKES IN THEIR OWNER'S MANUALS BUT FORD MOTOR CO SAYS IT IS CONSIDERING SPECIAL TRAINING PROGRAMS TO TEACH CUSTOMERS HOW TO USE THE BRAKES PROPERLY CHRYSLER CORP CURRENTLY PROVIDES CUSTOMERS WITH VIDEOTAPES AND PAMPHLETS BUT IS SERIOUSLY REEVALUATING OUR PRODUCT TRAINING LITERATURE SAYS CHRIS PREUSS A SPOKESMAN THIS SUMMER GENERAL MOTORS CORP WILL COSPONSOR WITH THE AMERICAN AUTOMOBILE ASSOCIATION SEVERAL NATIONAL TEST DRIVES TO ILLUSTRATE THE PROPER WAY TO USE ANTILOCK BRAKES GETTING A HANDLE ON DRIVER ERROR COULD BE KEY TO ASSESSING THE BENEFITS OF ANTILOCK BRAKES KIM HAZELBAKER SENIOR VICE PRESIDENT OF THE HIGHWAY LOSS DATA INSTITUTE SAYS THAT STRICTLY SPEAKING THE ANTILOCKBRAKE STUDY RESULTS DON'T SHOW A STATISTICAL DIFFERENCE BETWEEN CARS WITH AND WITHOUT THE SYSTEMS THE STUDY MEASURED DATA BASED ON THE FREQUENCY OF ACCIDENTS INVOLVING CERTAIN USMODEL CARS WITH AND WITHOUT ANTILOCK BRAKES AND THE DOLLAR AMOUNT OF INSURANCE PAYMENTS MADE TO THOSE IN ACCIDENTS THE STUDY DIDN'T ADDRESS INJURIES OR MEDICAL COSTS THE STUDY EXAMINED THE 1991 AND 1992 CHEVROLET CAVALIER CORSICA BERETTA AND LUMINA THE PONTIAC SUNBIRD AND TRANSPORT AND THE OLDSMOBILE SILHOUETTE THE DATA INCLUDED 55 OF THE TOTAL NUMBER OF CARS PRIVATELY INSURED IN THE INSTITUTE'S FILES THE INSTITUTE SAID THOSE GM VEHICLES WERE STUDIED BECAUSE THEY HAD NO SIGNIFICANT DESIGN CHANGES OTHER THAN THE ADDITION OF ANTILOCK BRAKES THE INSTITUTE FOUND THAT OVERALL INSURANCE LOSSES FOR 1992 CHEVY CAVALIERS EQUIPPED WITH ANTILOCK BRAKES WERE HIGHER THAN OVERALL LOSSES FOR THE SAME 1991 MODELS WITH REGULAR BRAKES ON A SCALE IN WHICH A SCORE OF 100 REPRESENTS AVERAGE INSURANCE LOSSES AND ZERO REPRESENTS NO LOSSES THE 1991 CAVALIERS WITHOUT ANTILOCK BRAKES SCORED 95 THE 1992 CAVALIERS WITH ANTILOCK BRAKES SCORED 96 MORE SURPRISINGLY ANTILOCKBRAKEEQUIPPED 1992 CAVALIERS HAD A 96 SCORE FOR ACCIDENT LOSSES DURING WINTER MONTHS IN NORTHERN STATES WHILE 1991 CAVALIERS WITHOUT ANTILOCK BRAKES SCORED 90 THAT IS FEWER LOSSES UNDER THE SAME CONDITIONS DESPITE THE STUDY GM ARGUES THAT THE PERFORMANCE CAPABILITIES OF ANTILOCKBRAKEEQUIPPED VEHICLES ON REDUCEDTRACTION SURFACES ARE IRREFUTABLE AS GM SPOKESMAN GREG PIERCE PUTS IT ADDS MR CARR OF THE US AUTO MAKERS' TRADE ASSOCIATION WE THINK IT'S A LITTLE EARLY FOR HLDI TO DRAW CONCLUSIONS OVERALL THE HIGHWAY LOSS DATA INSTITUTE REPORTED THAT AVERAGE CLAIM COSTS FOR 1992 CARS EQUIPPED WITH ANTILOCK BRAKES TOTALED 2293 COMPARED WITH 2215 FOR LIKE 1991 MODELS WITHOUT ANTILOCK BRAKES MR HAZELBAKER ACKNOWLEDGES THAT INFLATION ACCOUNTS FOR PART OF THE HIGHER COSTS FOR THE LATERMODEL VEHICLES NEVERTHELESS WE WERE SOMEWHAT SHOCKED THAT THE DATA DIDN'T INDICATE MUCH MORE BENEFIT SAYS MR VAN SICKLE OF THE AMERICAN AUTOMOBILE ASSOCIATION IT'S ONE OF THE BEST INVENTIONS THAT HAS COME AROUND IN A LONG TIME BUT PEOPLE DON'T KNOW HOW TO USE IT THE AIRBAG STUDY MADE FOR SIMILARLY MYSTIFYING FINDINGS THE STUDY WAS CONDUCTED BY GEORGE E HOFFER A VIRGINIA COMMONWEALTH UNIVERSITY PROFESSOR OF ECONOMICS AND STEVEN P PETERSON AN ASSISTANT PROFESSOR OF ECONOMICS AT THE SAME UNIVERSITY THEIR STUDY IS TO BE PUBLISHED THIS WEEK IN THE JOURNAL OF CONSUMER RESEARCH THEY CONDUCTED THE STUDY BECAUSE THEY WERE INTERESTED IN THE EFFECTS OF AIR BAGS ON DRIVER BEHAVIOR THE RESEARCHERS COMPARED LIKE MODELS OF CARS TO ELIMINATE DIFFERENCES IN BEHAVIOR BETWEEN TYPICAL BUYERS OF SAY VOLVO STATION WAGONS AND FORD MUSTANGS THEY ANALYZED INSURANCE DATA COLLECTED BETWEEN 1989 AND 1991 ON 20 CAR MODELS EQUIPPED WITH AIR BAGS FOR 12 MODELS THE RELATIVE FREQUENCY OF PERSONALINJURY CLAIMS INCREASED AFTER AIR BAGS BECAME STANDARD EQUIPMENT AFTER THE STUDY WAS COMPLETED THE RESEARCHERS GATHERED DATA FOR 1992 MODELS EQUIPPED WITH AIR BAGS THAT DATA SHOWS THAT SIX OUT OF 11 VEHICLES EQUIPPED WITH AIR BAGS REPORTED A HIGHER FREQUENCY OF PERSONALINJURY CLAIMS IN TOTAL 18 OF 31 MODELS FROM 1989 TO 1992 SAW THE RELATIVE NUMBER OF PERSONALINJURY CLAIMS RISE PERSONALINJURY CLAIMS REPRESENT THE MEDICAL EXPENSES AND LOSS OF INCOME IF ANY INCURRED BY DRIVERS AND PASSENGERS INVOLVED IN ACCIDENTS THE STUDY MEASURED THE NUMBER OF INJURY CLAIMS FILED NOT THE EXTENT OF THE INJURIES SUFFERED OR THE DOLLAR AMOUNT PAID TO THE INSURED IN THE STUDY A 1990 HONDA ACCORD SCORED A 91 FOR PERSONALINJURY CLAIMS ON THE SAME SCALE IN WHICH 100 REPRESENTS AVERAGE CLAIMS AND ZERO REPRESENTS NO CLAIMS BUT 1992 ACCORDS IN WHICH AIR BAGS WERE STANDARD HAD MORE CLAIMS AND SCORED 98 THE RESEARCHERS ALSO FOUND THAT BY THE END OF THE 1990 MODEL YEAR EVERY CHRYSLER CAR THAT HAD BEEN EQUIPPED WITH AIR BAGS REPORTED A HIGHER FREQUENCY OF INSURANCE CLAIMS FOR PERSONAL INJURIES THAN THE LIKE MODELS HAD BEFORE GETTING AIR BAGS CHRYSLER SAYS IT IS NOT WORRIED ABOUT THE DATA BECAUSE AIR BAGS ARE WORKING AS INTENDED YOU MIGHT HAVE INCREASES IN SUPERFICIAL INJURIES LIKE BRUISES AND CUTS SAYS MR PREUSS OF CHRYSLER BUT THE INJURIES COULD HAVE BEEN MUCH MORE SEVERE WITHOUT THE AIR BAG CLEARLY THE FINDINGS RAISE MORE QUESTIONS THAN THEY ANSWER THE RELATIVE NUMBER OF PERSONALINJURY CLAIMS RISES BUT NOT THE OVERALL INSURANCE LOSSES THE RESEARCHERS AREN'T SURE IF THE TREND HAS ANYTHING TO DO WITH THE EQUIPMENT BRIAN O'NEILL PRESIDENT OF THE HIGHWAY LOSS DATA INSTITUTE CALLS THE AIRBAG FINDINGS MISLEADING HE SAYS THAT IN SOME INSTANCES THE INJURY CLAIM FREQUENCIES RISE BUT THE COMPARISONS OF CARS WITH AND WITHOUT AIR BAGS ARE COMPLICATED BY OTHER DESIGN ISSUES THOUGH PROF HOFFER SAYS THE DATA WERE ADJUSTED FOR SUCH VARIABLES STILL MR O'NEILL MAINTAINS THERE IS NO CLEAR PATTERN ON WHETHER CARS WITH AIR BAGS REPORT A HIGHER NUMBER OF PERSONALINJURY CLAIMS THAN THOSE WITHOUT SOMETIMES THEY DO AND SOMETIMES THEY DON'T HE SAYS PROF HOFFER CAUTIONS THAT NONE OF THIS MEANS THAT AIR BAGS ARE BAD I'D MUCH RATHER HAVE THEM THAN NOT WHETHER CARS WITH THEM SHOULD HAVE INSURANCE DISCOUNTS MAY BE ANOTHER QUESTION THOUGH IF AS THE HOFFER STUDY INDICATES PERSONALINJURY CLAIMS RISE WITH AIR BAGS AN ADDITIONAL EXPENSE IS THAT IT COSTS ABOUT 1200 TO REPLACE AN AIR BAG THAT HAS DEPLOYED IN A CRASH INDEED THE PAUCITY OF FACTS TO EXPLAIN THE SURPRISING STATISTICAL FINDINGS HAS SOME RESEARCHERS REEXAMINING CERTAIN ELEMENTS OF HUMAN BEHAVIOR IF YOU BUILD A SAFER LADDER PEOPLE WILL CLIMB HIGHER SUGGESTS PROF HOFFER HE ARGUES THAT JUST AS PEOPLE DRIVE AT HIGHER SPEEDS AND FOLLOW MORE CLOSELY ON DRY SMOOTH ROADS THAN ON WET SLIPPERY ONES IT MAKES SENSE THAT PEOPLE WOULD DRIVE MORE AGGRESSIVELY WHEN THEIR CARS WERE EQUIPPED WITH MORE SAFETY TECHNOLOGY BACK IN 1975 SAM PELTZMAN A UNIVERSITY OF CHICAGO ECONOMIST CONDUCTED A STUDY PREDICTING THAT GOVERNMENTMANDATED SAFETY MEASURES SUCH AS SEAT BELTS AND LOWER SPEED LIMITS WOULD HAVE LITTLE OR NO IMPACT ON THE FINANCIAL LOSSES FROM AUTO ACCIDENTS HE MAINTAINED THAT DEMAND FOR SAFETY ALREADY WAS BEING ADDRESSED BY THE MARKET AND THAT MANDATED SAFETY DEVICES COULD ENCOURAGE DRIVER CARELESSNESS I FOUND THAT RISKTAKING BEHAVIOR COMPLETELY OFFSET THE LIFESAVING EFFECTS OF MANDATED SAFETY EQUIPMENT MR PELTZMAN SAYS THE BOTTOM LINE HE SAYS IS THAT SAFETY EQUIPMENT LOWERS THE PRICE OF DRIVING MORE AGGRESSIVELY SUCH ARGUMENTS ARE LEADING RESEARCHERS LIKE ROBERT S CHIRINKO AN ASSISTANT PROFESSOR OF PUBLIC POLICY AT THE UNIVERSITY OF ILLINOIS TO CONCLUDE THAT THE PEACE OF MIND THAT COMES WITH THE NEW SAFETY TECHNOLOGY MAY ACTUALLY BE DANGEROUS IF YOU HAVE A SAFER CAR THE PROBABILITY OF BEING IN AN ACCIDENT IS HIGHER HE MAINTAINS OFFSETTING BEHAVIOR COULD DAMPEN OR REVERSE THE INTENT OF SAFETY REGULATIONS AS TIME PASSES THE BENEFITS OF ANTILOCK BRAKES AND AIR BAGS WILL BECOME CLEARER AUTO MAKERS AND INSURANCE COMPANIES SAY WHEN DRIVERS CATCH UP TO THE TECHNOLOGY YOU'RE GOING TO SEE A CHANGE SAYS JERRY BASCH COMMUNITYSAFETY SERVICES MANAGER OF THE MICHIGAN BRANCH OF AMERICAN AUTOMOBILE ASSOCIATION WE'RE GOING TO WATCH WHAT HAPPENS DOWN THE ROAD THERE HAVE TO BE MORE THOROUGH STUDIES SEE RELATED LETTER LETTERS TO THE EDITOR NO DOUBT ABOUT IT AIR BAGS SAVE LIVES WSJ APRIL 19 1994 9403170046 YY94 MM04 9404180165 940418 ECONOMY FIRST UNION GETS APPROVAL TO BUY FUND COMPANY REGULATORY NOD BODES WELL FOR MELLON BANK'S PLANS TO PURCHASE DREYFUS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE COMPTROLLER OF THE CURRENCY APPROVED THE APPLICATION BY A FIRST UNION CORP UNIT TO BUY A MUTUALFUND COMPANY SIGNALING THAT THE AGENCY MAY BLESS OTHER BANK PURCHASES OF MUTUALFUND COMPANIES THE COMPTROLLER WHICH REGULATES NATIONAL BANKS ALSO IS CONSIDERING AN APPLICATION BY A UNIT OF MELLON BANK CORP TO PURCHASE DREYFUS CORP FOR 17 BILLION DREYFUS PROVIDES INVESTMENT ADVICE AND SERVICES TO MORE THAN 130 MUTUAL FUNDS WITH ABOUT 80 BILLION IN ASSETS BECAUSE OF ITS SIZE THE MELLON PROPOSAL HAS ATTRACTED CONSIDERABLE ATTENTION IN CONGRESS BUT THE LEGAL ISSUES ARE SIMILAR TO THOSE RAISED BY THE BID BY FIRST UNION NATIONAL BANK OF CHARLOTTE NC TO PURCHASE LIEBER & CO WHICH IS BASED IN PURCHASE NY LIEBER ADVISES AND SERVICES 15 MUTUAL FUNDS IN THE EVERGREEN GROUP WITH ASSETS OF ABOUT 32 BILLION SOME LAWMAKERS HAVE WARNED THAT THE MELLON TRANSACTION RAISES SIGNIFCANT ISSUES INVOLVING BANK SAFETY AND REGULATION AND THE PROTECTION OF BANK CUSTOMERS WHO PURCHASE MUTUAL FUNDS THE COMPTROLLER SAID THAT FIRST UNION'S PROPOSAL TO ESTABLISH SUBSIDIARIES THAT WILL ENGAGE IN INVESTMENT ADVISORY BROKERAGE AND ADMINISTRATION SERVICES TO VARIOUS CLIENTS INCLUDING THE EVERGREEN FAMILY OF MUTUAL FUNDS IS PERMITTED BY FEDERAL BANKING LAW BOTH THE FIRST UNION AND MELLON APPLICATIONS COME AT A TIME WHEN BANKS ACCOUNT FOR AN INCREASING SHARE OF THE NATION'S MUTUALFUND SALES IN THEIR EFFORTS TO GENERATE A HIGHER PROPORTION OF THEIR INCOME FROM FEES FOR SERVICES RATHER THAN MOREVOLATILE INTERESTRATE INCOME MORE BANKS ARE CONSIDERING PURCHASING MUTUALFUND ADVISORY AND SERVICING COMPANIES BUT CONGRESS IS INCREASINGLY WORRIED BY SURVEYS SHOWING THAT MANY PEOPLE THINK THAT FUNDS PURCHASED FROM BANKS ARE COVERED BY FEDERAL DEPOSIT INSURANCE UNLIKE BANK DEPOSITS MUTUAL FUNDS AREN'T FEDERALLY INSURED IN ADDITION REP JOHN DINGELL D MICH CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE WORRIES THAT THE COMPTROLLER ISN'T PROPERLY EQUIPPED TO REGULATE MUTUAL FUNDS A JOB LARGELY PERFORMED BY THE SECURITIES AND EXCHANGE COMMISSION THE FIRST UNION AND MELLON PROPOSALS PROVIDE FOR CONTINUED SEC SUPERVISION 9404180164 940418 SARDINE AND SHRIMP ETIQUETTE BY MICHAEL J MCCARTHY WITH MORE CLOSE ENCOUNTERS IN COACH WHAT IS THE ETIQUETTE OF RECLINING WHO OWNS THE ARMRESTS AND DOES THE SPACE UNDER YOUR SEAT BELONG TO YOU OR TO THE PERSON BEHIND YOU AIRLINE CABINS TEST MANNERS FOR SURE SAYS JUDITH MARTIN ALSO KNOWN AS MISS MANNERS THE SYNDICATED COLUMNIST ONE OF THE MOST GALLING ISSUES IS RECLINING SEATS AND WHAT SOME SEASONED TRAVELERS CALL THE DOMINO EFFECT SOMEONE IN ROW FOUR RECLINES HIS SEAT SO THE PASSENGER IN ROW FIVE HAS TO AND SO ON AND SO ON SWEPT BACK IN THIS WAVE SOME TRAVELERS NONETHELESS FEEL GUILTY I GO BACK JUST A LITTLE SAYS JANET MCGRATH AN AVERTISING EXECUTIVE IN MINNEAPOLIS I ALWAYS FEEL IT'S SO RUDE TO RECLINE MY SEAT SHOULD SHE FEEL THAT WAY SAYS MISS MANNERS I WOULDN'T REGARD AUTOMATICALLY AS BOORS PEOPLE WHO MAKE THE REASONABLE ASSUMPTION THAT RECLINING SEATS ARE DESIGNED TO BE RECLINED NONETHELESS SHE ADDS THE POLITE PASSENGER WILL INQUIRE AND NOT LEAN BACK IF ASKED NOT TO PEOPLE SHOULD CURTAIL THEIR OWN COMFORT SO AS NOT TO MAKE EXTREME DISCOMFORT FOR SOMEONE ELSE SHE SAYS A LITTLE DECORUM MIGHT HAVE KEPT THE UNITED AIRLINES FLIGHT ON SCHEDULE A YEAR AND A HALF AGO AT NEW YORK'S LA GUARDIA AIRPORT THE JAMPACKED JET HAD TO TAXI ALL THE WAY BACK TO THE GATE BECAUSE FLIGHT ATTENDANTS COULDN'T CONTROL TWO PASSENGERS WHO CAME TO BLOWS OVER STORAGE SPACE UNDER A SEAT TECHNICALLY UNITED AIRLINES SAYS THE SPACE UNDER THE SEAT IN FRONT OF YOU IS YOURS IN A ROW OF THREE SEATS THERE ARE SIX ARMS AND FOUR ARMRESTS SO WHO OWNS THEM IS THERE A POLITE WAY FOR EXAMPLE FOR A MIDDLE SEAT PASSENGER TO ASSERT OWNERSHIP OF BOTH ARMRESTS I PUT THIS IN THE CATEGORY OF THE SHRIMPTAIL QUESTION SAYS MISS MANNERS PEOPLE OFTEN ASK AFTER EATING THE MAIN PART OF THE SHRIMP WHAT IS THE POLITE WAY TO GET AT THE LITTLE PIECE LEFT ON THE TAIL' THE ANSWER WHICH SHE SAYS PERTAINS TO MANY QUESTIONS ABOUT CABIN PROPRIETY THERE IS NO POLITE WAY 9404180163 940418 TISCH'S DUAL ROLE MACY BOARD MEMBER AND BONDHOLDER IGNITES WAR OF WORDS BY LAURA JERESKI AND PATRICK M REILLY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK AN EXCHANGE OF ACERBIC LETTERS BETWEEN LAWYERS FOR RH MACY & CO BONDHOLDERS AND FOR THE COMPANY HIGHLIGHTS THE UNUSUAL ROLE OF MACY BOARD MEMBER LAURENCE A TISCH ALSO A BONDHOLDER IN A LETTER HARVEY MILLER THE WEIL GOTSCHAL & MANGES ATTORNEY REPRESENTING MACY COMPLAINED THAT THE BONDHOLDERS' COUNSEL ROBERT MILLER OF BERLACK ISRAELS & LIBERMAN IMPROPERLY HELD FREQUENT CONVERSATIONS WITH MR TISCH THE MACY ATTORNEY CONTENDED THAT MR TISCH AS A MACY DIRECTOR IS HIS CLIENT AND THAT HIS PERMISSION SHOULD HAVE BEEN SOUGHT FOR EACH CONTACT THE DISCLOSURE IS PART OF AN UNUSUALLY MEANSPIRITED CORRESPONDENCE BETWEEN THE TWO LAWYERS WHO ARE NOT RELATED THE LETTERS ARE CONTAINED IN AN AFFIDAVIT FILED LAST WEEK BY HARVEY MILLER IN RESPONSE TO ROBERT MILLER'S CHARGE THAT WEIL GOTSCHAL COULD NOT REPRESENT MACY AT THE SAME TIME THAT IT REPRESENTS FIDELITY INVESTMENTS A MACY CREDITOR IN AN UNRELATED BANKRUPTCYCOURT PROCEEDING THE DISCLOSURES COULD FURTHER MUDDY MACY'S CONTENTIOUS BANKRUPTCYCOURT PROCEEDING WHICH A FEDERAL JUDGE HAS BEEN UNSUCCESSFUL IN KEEPING CONFIDENTIAL MR TISCH CAUSED A RIFT ON MACY'S BOARD LAST MONTH OVER THE RETAILER'S PROPOSAL FOR A REORGANIZATION PLAN LAST WEEK ROBERT MILLER ASKED THE US TRUSTEE TO LOOK INTO WEIL GOTSCHAL'S POTENTIAL CONFLICT OF INTEREST ROBERT MILLER FIRST DISCUSSED MACY WITH REPRESENTATIVES OF LOEWS CORP THE COMPANY THROUGH WHICH MR TISCH CONTROLS 52 MILLION OF MACY BONDS ON FEB 27 1992 SCARCELY A MONTH AFTER THE RETAILER'S BANKRUPTCYCOURT FILING OVER THE NEXT TWO YEARS ROBERT MILLER COMMUNICATED NEARLY 30 TIMES WITH LOEWS REPRESENTATIVES INCLUDING MR TISCH'S SON JIMMY AND HILLEL WEINBERGER MR WEINBERGER RUNS THE BOND PORTFOLIO OF INSURER CNA THE LOEWS SUBSIDIARY THAT HOLDS THE MACY BONDS MR WEINBERGER AND MR MILLER WORKED TOGETHER ON NUMEROUS BANKRUPTCY PROCEEDINGS INCLUDING THE REORGANIZATION OF TRUMP TAJ MAHAL SOME OF THE CONTACTS OCCURRED AT CRUCIAL TIMES IN THE MACY CHAPTER 11 CASE LAST SUMMER ACCORDING TO INFORMATION FROM ROBERT MILLER'S TIMESHEETS CITED IN THE CORRESPONDENCE HE SPOKE WITH JIMMY TISCH ABOUT RUMORS RELATING TO THE RUNUP IN BOND PRICES IN THE TWO DAYS FOLLOWING FEDERATED DEPARTMENT STORES INC'S ANNOUNCEMENT ON JAN 3 THAT IT WANTED TO MERGE WITH MACY ROBERT MILLER SPENT AN INDETERMINATE AMOUNT OF TIME ON NUMEROUS TELEPHONE CALLS WITH MR WEINBERGER THESE OCCASIONAL DISCUSSIONS WITH TISCH HAVE BEEN OPEN AND DISCLOSED ROBERT MILLER SAID IN AN INTERVIEW YESTERDAY HARVEY MILLER KNEW ABOUT VIRTUALLY ALL OF THEM AND ENCOURAGED MOST OF THEM IN THE CORRESPONDENCE ROBERT MILLER DEFENDED THESE DISCUSSIONS AS COMMUNICATIONS WITH MEMBERS OF OUR COMMITTEE'S CONSTITUENCY HE FURTHER INSISTED THAT MR TISCH TOLD HIM THAT HARVEY MILLER DOESN'T REPRESENT MACY'S DIRECTORS EVEN THOUGH BANKRUPTCY CASE LAW SUGGESTS OTHERWISE MR TISCH SAID IN AN INTERVIEW YESTERDAY THAT HIS BONDHOLDINGS HAVE BEEN FULLY DISCLOSED AND THAT NO BONDS WERE BOUGHT OR SOLD BASED ON CONVERSATIONS WITH ROBERT MILLER I THINK THE MOST IMPORTANT THING IS COMPLETE DISCLOSURE SAID MR TISCH HOW CAN I BE ON THE WRONG SIDE AS LONG AS I AM SEEKING THE GREATEST BENEFIT FOR ALL CONSTITUENTS MR WEINBERGER SAID THAT ROBERT MILLER CALLED HIM ONLY TO LOCATE MR TISCH THE COURT FILING ALSO REVEALS THAT ROBERT MILLER BILLED MACY FOR 293 HOURS SPENT TALKING WITH REPORTERS INCLUDING THE WALL STREET JOURNAL AND THE NEW YORK TIMES TOTALLING 13185 ACCORDING TO BANKRUPTCY PRACTICE REPRESENTATIVES OF OFFICIAL COMMITTEES ARE PAID BY THE DEBTOR'S ESTATE IT IS HARDLY APPROPRIATE FOR THE DEBTORS' ESTATES TO BE SADDLED WITH THE COSTS OF YOUR INSATIABLE DESIRE TO SEE YOUR NAME IN PRINT HARVEY MILLER WROTE IN A LETTER REFERRING TO ROBERT MILLER WHICH WAS INCLUDED WITH HARVEY MILLER'S AFFIDAVIT 9404180162 940418 INTERNATIONAL WASHINGTON INSIGHT RIGHTS ACTIVISTS URGE US BUSINESSES IN CHINA TO ADOPT CODE OF STANDARDS BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IF HUMANRIGHTS PROPONENTS HAVE THEIR WAY US BUSINESSES MAY START FEELING PRESSURE TO ADOPT A CODE OF STANDARDS FOR THEIR OPERATIONS IN CHINA ONE IDEA WOULD BE TO REQUIRE THEM TO TAKE SUCH STEPS AS PROHIBITING ANY CHINESE MILITARY PRESENCE ON THEIR PREMISES AND PRESSING THE BEIJING GOVERNMENT TO END DETENTION AND TORTURE OF POLITICAL PRISONERS IN ADDITION HUMAN RIGHTS WATCH/ASIA A PRIVATE GROUP IS CONDUCTING A QUIET CAMPAIGN TO CONVINCE US COMPANIES THAT SUCH STANDARDS WOULD BE IN THEIR LONGTERM INTEREST WHILE LEGISLATION HAS BEEN DRAFTED TO IMPOSE SUCH STANDARDS THE HUMANRIGHTS GROUP HAS HELPED SOME US FIRMS SUCH AS REEBOK INTERNATIONAL LTD DRAFT VOLUNTARY CODES THE PUSH FOR A CORPORATE CODE FOR CHINA COULD GAIN STEAM AS PRESIDENT CLINTON HEADS TOWARD THE JUNE 3 DEADLINE FOR DECIDING WHETHER BEIJING HAS MET HUMANRIGHTS TESTS SUFFICIENTLY TO WIN RENEWAL OF ITS FAVORABLE TRADE RELATIONS WITH THE US MR CLINTON IS CAUGHT BETWEEN A CAMPAIGN PROMISE TO HOLD CHINA TO A TOUGH HUMANRIGHTS STANDARD AND A DESIRE NOT TO DERAIL A BUDDING COMMERCIAL RELATIONSHIP WITH ONE OF THE WORLD'S FASTESTGROWING ECONOMIES THE ADMINISTRATION IS CONSIDERING A NUMBER OF MEASURES THAT WOULD HELP IT MAINTAIN ITS CREDIBILITY WHILE PRESERVING TRADE TIES WITH CHINA A SENIOR US OFFICIAL CALLS THE NOTION OF A CORPORATE CODE OF STANDARDS SOMETHING WORTH EXPLORING THOUGH HE SAYS THE ADMINISTRATION WOULD PREFER A VOLUNTARY CODE BUT SOME BUSINESS LEADERS HARBOR SERIOUS CONCERNS CLINTON IS CASTING ABOUT FOR ALTERNATIVES WITH SUFFICIENT BITE TO PLEASE THE HUMANRIGHTS COMMUNITY BUT IN THAT SEARCH A NUMBER OF FAIRLY HOLLOW GESTURES ARE BEING CONSIDERED TO SUPPLY THE NECESSARY POLITICAL COVER COMPLAINS RICHARD BRECHER AN OFFICIAL AT THE USCHINA BUSINESS COUNCIL WHICH REPRESENTS ABOUT 250 US COMPANIES WITH BUSINESS INTERESTS IN CHINA MOST US COMPANIES DOING BUSINESS IN CHINA HAVEN'T YET FELT THE KIND OF WIDESPREAD PUBLIC PRESSURE THAT THEIR BRETHREN ENCOUNTERED FOR DOING BUSINESS IN SOUTH AFRICA A DECADE AGO SO FAR THE DEBATE OVER CHINA HAS BEEN A NARROWER POLITICAL ONE INVOLVING CONGRESS AND THE WHITE HOUSE INDEED DURING SECRETARY OF STATE WARREN CHRISTOPHER'S TRIP LAST MONTH TO CHINA MEMBERS OF THE AMERICAN CHAMBER OF COMMERCE IN BEIJING EAGERLY SOUGHT OUT REPORTERS TO MAKE THEIR CASE THAT LINKING TRADE WITH HUMAN RIGHTS IS A DISASTROUS POLICY BUT THE PUBLIC QUIESCENCE COULD CHANGE CHINA MAY BE HEADED FOR SOME TURBULENT TIMES WHEN ITS AGING SENIOR LEADER DENG XIAOPING PASSES FROM THE SCENE INFLATION AND WIDESPREAD CORRUPTION ALREADY ARE PRODUCING DISCONTENT AND CHINA'S LEADERS WON'T BE IN THE MOOD TO BROOK DISSENT IN THE MIDST OF A SUCCESSION FIGHT IF THERE IS A NEW CRACKDOWN IN CHINA WHO KNOWS WHAT MIGHT HAPPEN AND WHAT KIND OF BACKLASH AMERICAN COMPANIES MAY FACE SAYS MIKE JENDRZEJCZYK WASHINGTON DIRECTOR OF HUMAN RIGHTS WATCH/ASIA HE NOTES THAT SOME MUNICIPAL PENSION FUNDS ALREADY ARE TALKING ABOUT SHUNNING COMPANIES THAT DO BUSINESS IN CHINA A TACTIC USED IN THE BATTLE AGAINST APARTHEID IN SOUTH AFRICA AS A RESULT OF PAST PUBLIC PROTESTS OVER INVOLVEMENT IN SOUTH AFRICA AND ANGOLA US CORPORATIONS ARE KEENLY AWARE OF THE POTENTIAL THAT SUCH PRESSURES COULD ARISE AGAIN INCREASINGLY CONSUMERS ARE BUYING A COMPANY'S VALUES AS WELL AS ITS PRODUCTS SAYS DOUG CAHN DIRECTOR OF HUMANRIGHTS PROGRAMS FOR REEBOK MR BRECHER OF THE USCHINA BUSINESS COUNCIL ARGUES THAT MANDATORY STANDARDS MAKE PRIVATE ENTERPRISE AN EXPLICIT AGENT FOR THE US GOVERNMENT AND ITS FOREIGN POLICY HE SAYS A CODE WOULD UNDERCUT HUMANRIGHTS IMPROVEMENTS THAT CORPORATIONS NOW ACHIEVE QUIETLY IN CHINA HE ALSO SAYS THAT A UNILATERAL APPROACH WOULD MAKE US COMPANIES LESS COMPETITIVE THAN FOREIGN FIRMS BUT WILLIAM MOSES A SENIOR ANALYST AT THE INVESTOR RESPONSIBILITY RESEARCH CENTER INC A PRIVATE RESEARCH GROUP CONTENDS THAT THE CODE OF STANDARDS IN SOUTH AFRICA PROMPTED WORKPLACE IMPROVEMENTS AND TRAINING PROGRAMS THAT DEVELOPED A GENERATION OF WORKERS FOR US COMPANIES GIVING THE FIRMS A COMPETITIVE ADVANTAGE IT ALSO IMPROVED THE LIVES OF THOUSANDS OF SOUTH AFRICAN BLACKS HE ARGUES BUSINESS KEEPS MAKING THE ARGUMENT THAT ITS PRESENCE IN CHINA WILL IMPROVE THINGS SAYS MR JENDRZEJCZYK LET THEM PUT THEIR MONEY WHERE THEIR MOUTH IS AND SUPPORT SUCH CODES 9404180161 940418 ECONOMY BENTSEN EXPECTS FED TO INCREASE RATES FURTHER REVISED TREASURY FORECAST SEES SHORTTERM YIELDS AT 4 BY END OF YEAR BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TREASURY SECRETARY LLOYD BENTSEN SAID HE IS PREPARED FOR THE FEDERAL RESERVE TO RAISE SHORTTERM INTEREST RATES ANOTHER HALF PERCENTAGE POINT THIS YEAR IN OUR OWN PROJECTIONS WE WERE FORECASTING APPROXIMATELY A 4 RATE BY THE END OF THE YEAR INSOFAR AS SHORTTERM MONEY MR BENTSEN SAID OVER THE WEEKEND ON CNN'S EVANS & NOVAK SHOW IN FACT THE CLINTON ADMINISTRATION'S LATEST PUBLIC ECONOMIC FORECAST RELEASED IN FEBRUARY HAS SHORTTERM RATES AVERAGING 34 THIS YEAR AND 38 NEXT BUT MR BENTSEN'S SPOKESWOMAN JOAN LOGUE KINDER SAID YESTERDAY THAT A REVISED TREASURY FORECAST PROJECTS THAT THE YIELD ON THREEMONTH TREASURY BILLS WILL BE AT 4 AT THE END OF THE YEAR SHORTTERM INTEREST RATES WHICH ARE ESSENTIALLY CONTROLLED BY THE FED ARE NOW SLIGHTLY ABOVE 35 THE FED IS WIDELY EXPECTED TO CONTINUE TO INCREASE RATES IN VIEW OF THE STRENGTHENING US ECONOMY BUT OFFICIALS HAVE SAID LITTLE ABOUT HOW FAR AND HOW FAST THEY INTEND TO RAISE THEM MOST WALL STREET ANALYSTS EXPECT THE FED TO RAISE RATES AT LEAST TO 4 AND MANY EXPECT THE FED TO GO FURTHER THE TREASURY SECRETARY WHO MEETS WEEKLY WITH FED CHAIRMAN ALAN GREENSPAN SAID HE WASN'T TRYING TO PREDICT WHAT THE FED WOULD DO PRESIDENT CLINTON HAS COMPLAINED PUBLICLY THAT THE BOND MARKET HAS PUSHED UP LONGTERM INTEREST RATES TOO MUCH BUT HE AND HIS ECONOMIC ADVISERS HAVE BEEN CAREFUL NOT TO CRITICIZE THE FED ASKED ON THE CNN PROGRAM IF HE WAS UNHAPPY THAT THE FED HAS ALREADY RAISED SHORTTERM INTEREST RATES BY A HALF POINT THIS YEAR MR BENTSEN SAID SIMPLY NO I'M NOT LIKE MR CLINTON AND WHITE HOUSE ECONOMIST LAURA TYSON MR BENTSEN HAS BEEN ARGUING THAT THERE ISN'T ANY SIGN OF INFLATIONARY PRESSURES BUILDING IN THE ECONOMY HE ALSO SAID THE CLINTON ADMINISTRATION AND THE FED SHARE THE OBJECTIVE OF SUSTAINED ECONOMIC GROWTH AT A LOW INFLATION RATE 9404180160 940418 WHO'S NEWS BELDEN & BLAKE CORP BELDEN & BLAKE CORP NORTH CANTON OHIO PAUL R BISHOP 50 YEARS OLD WAS NAMED A DIRECTOR OF THIS OIL AND GASEXPLORATION AND PRODUCTION CONCERN MR BISHOP IS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PRIVATELY HELD HP PRODUCTS INC LOUISVILLE OHIO HE FILLS A VACANCY ON THE COMPANY'S 10MEMBER BOARD CREATED BY THE JUNE 1993 DEATH OF MONROE E SPAGHT 9404180159 940418 FINANCING BUSINESS THERMO ELECTRON COMPLETES SALE WALTHAM MASS THERMO ELECTRON CORP SAID IT COMPLETED THE SALE OF 345 MILLION OF 5 SENIOR CONVERTIBLE DEBENTURES DUE 2001 INCLUDING THE 45 MILLION OVERALLOTMENT OPTION EXERCISED BY THE MANAGERS OF THE OFFERING THE COMPANY SAID THAT THE DEBENTURES WILL BE CONVERTIBLE INTO COMMON SHARES AT 4725 EACH 9404180158 940418 TECHNOLOGY & ENVIRONMENT EPA SEES LEAD RISK IN PRIVATE WELLS AND PLANS TO URGE USE OF BOTTLED WATER BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL CONCERNED ABOUT POTENTIALLY HAZARDOUS CONCENTRATIONS OF LEAD IN WELL WATER USED BY MILLIONS OF PEOPLE NATIONWIDE THE ENVIRONMENTAL PROTECTION AGENCY WILL URGE MANY OF THEM TO TEMPORARILY SWITCH TO BOTTLED WATER IMMEDIATELY THE UNUSUAL ANNOUNCEMENT EXPECTED TO BE MADE BY THE EPA AS EARLY AS TODAY AMOUNTS TO A PUBLIC HEALTH WARNING ABOUT THE POSSIBLE DANGERS OF LEAD CONTAMINATION FROM CERTAIN TYPES OF UNDERGROUND PUMPS WIDELY USED IN PRIVATE WELLS LAST FRIDAY AGENCY OFFICIALS WERE HURRIEDLY PREPARING A STATEMENT URGING OWNERS OF PRIVATE WELLS TO HAVE THEIR WATER TESTED FOR LEAD FOR PEOPLE USING WELLS WITH A RECENTLY INSTALLED SUBMERSIBLE PUMP THE EPA WILL RECOMMEND SWITCHING TO BOTTLED WATER AT LEAST FOR A WEEK OR TWO UNTIL THEY RECEIVE THE TEST RESULTS WHILE SOME ESTIMATES PEG THE NUMBER OF HOMES RELYING ON DOMESTIC WELL WATER WELL ABOVE 10 MILLION NATIONWIDE IT ISN'T CLEAR HOW MANY OF THEM RELY ON THE SUSPECT PUMPS OR MAY HAVE UNSAFE LEVELS OF LEAD THE ANSWERS COULD TAKE MONTHS TO BECOME EVIDENT NEVERTHELESS THE EPA'S ANTICIPATED MOVE INDICATES THAT SCIENTISTS HAVE UNCOVERED AN IMPORTANT THOUGH PREVIOUSLY UNDETECTED AND UNPUBLICIZED SOURCE OF POTENTIAL LEAD CONTAMINATION AFFECTING THE GENERAL POPULATION FEDERAL CONCERN WAS PROMPTED BY STUDIES AND LABORATORY ANALYSES CONDUCTED BY TWO PROMINENT NATIONAL ENVIRONMENTAL ORGANIZATIONS THE ENVIRONMENTAL DEFENSE FUND AND THE NATURAL RESOURCES DEFENSE COUNCIL THOSE TESTS INDICATED THAT UNDER SOME CIRCUMSTANCES THE AMOUNT OF LEAD LEACHING OUT OF PUMPS INSTALLED IN DEEPER WELLS FAR EXCEEDS FEDERAL DRINKING WATER STANDARDS NEWER PUMPS POSE THE GREATEST HAZARD BECAUSE THEIR BRASS PARTS TEND TO RELEASE LARGER AMOUNTS OF LEAD INTO THE WATER DURING THE FIRST YEAR OR TWO OF USE THE ENVIRONMENTAL GROUPS HAVE SCHEDULED A NEWS CONFERENCE TODAY IN LOS ANGELES TO RELEASE THE DATA AND TO ANNOUNCE THE FILING OF A LAWSUIT CHALLENGING THE USE OF MANY OF THE PUMPS UNDER CALIFORNIA'S STRICT TOXIC CONTROL LAWS THE EPA RARELY TAKES ACTION BASED ON TEST RESULTS SUBMITTED BY OUTSIDE GROUPS IN THE PAST THE AGENCY ALSO SHIED AWAY FROM URGING HOMEOWNERS AND OTHERS TO SWITCH TO BOTTLED WATER UNLESS THERE WAS AN IMMINENT AND CLEARLY DEFINED HEALTH HAZARD BUT IN THIS CASE FEDERAL ENVIRONMENTAL OFFICIALS SEEM EAGER TO TRY TO DEFUSE THE CONTROVERSY BY SHOWING THEY ARE TAKING THE WARNINGS FROM CRITICS SERIOUSLY ENVIRONMENTAL GROUPS HAVE LONG COMPLAINED ABOUT THE OVERALL HEALTH HAZARD POSED BY PRIVATE WELLS WHICH BASICALLY FALL OUTSIDE FEDERAL REGULATION BECAUSE THEY ARE ON PRIVATE LAND AND AREN'T COVERED BY THE FEDERAL SAFE DRINKING WATER ACT MORE BROADLY THE LATEST FLURRY OF ACTIVITY COMES AT A TIME WHEN THE FEDERAL DRINKING WATER LAW ITSELF IS TURNING INTO A POLITICAL LITMUS TEST OF RELATIONS BETWEEN THE CLINTON ADMINISTRATION AND THE COUNTRY'S MOST INFLUENTIAL ENVIRONMENTAL GROUPS PETER COOK DEPUTY DIRECTOR OF THE EPA'S OFFICE OF GROUNDWATER AND DRINKING WATER SAID IN AN INTERVIEW THAT THE AGENCY WILL BE ERRING ON THE SIDE OF CONSERVATISM BY ISSUING THE WARNINGS IT'S ESPECIALLY IMPORTANT FOR PEOPLE TO BE CONSERVATIVE WHEN SMALL CHILDREN ARE INVOLVED HE SAID HEIGHTENED EXPOSURE TO LEAD CAN CAUSE SUBTLE BUT SERIOUS NEUROLOGICAL DAMAGE IN THE YOUNG A DRAFT OF THE EPA'S STATEMENT URGES THE TEMPORARY USE OF BOTTLED WATER BY ANYONE WHO HAD A SUBMERSIBLE WELL PUMP INSTALLED IN THE LAST YEAR LEAD CONTAMINATION IN A WELL DEPENDS AMONG OTHER THINGS ON THE TYPE OF PUMP AND THE DEPTH AT WHICH IT IS INSTALLED THE CHEMICAL PROPERTIES OF THE UNDERGROUND WATER SUPPLY AND THE AMOUNT OF WATER PUMPED OVER A GIVEN PERIOD OF TIME TIMOTHY NOAH CONTRIBUTED TO THIS ARTICLE 9404180157 940418 SONG IDEA FOR THE PROPELLERHEADS MY BABY DOS THE HANKYPANKY' BY RICHARD S TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL AT THE RECENT UNIFORUM COMPUTER TRADE SHOW IN SAN FRANCISCO THE VISITING TECHIES ROCKED TO THE SOUNDS OF TWO BANDS THE BEACH BOYS AND THE TALKING PROPELLERHEADS WHILE THE BEACH BOYS MIGHT BE A BETTERKNOWN BAND THE TALKING PROPELLERHEADS WERE PROBABLY BETTER AT INTERFACING WITH THE CROWD THAT'S BECAUSE THEY PLAY SONGS LIKE UNIX ON THE DESKTOP SUNG TO THE TUNE OF MESSAGE IN A BOTTLE BY THE POLICE JUST AN OLD OS ISOLATING ME OH AND I MUST CONFESS BETTER THAN NT OH MORE WINDOWS HYPE THAN ANYONE CAN BEAR BUY MY CODE BEFORE I FALL INTO DESPAIR OH OS STANDS FOR OPERATING SYSTEM AND NT REFERS TO WINDOWS NT MICROSOFT'S NEW OPERATING SYSTEM THE TALKING PROPELLERHEADS WERE BORN 13 YEARS AGO WHEN SIX SALESMEN AT WESTBORO MASSBASED DATA GENERAL SHOWED UP FOR THE ANNUAL SALES MEETING WITH PENCILS TABLES CHARTS AND GUITARS KEYBOARDS AND DRUMS THEY PERFORMED HITECH CLASSIC ROCK PARODIES SUCH AS PSYCHO SALESREP TO THE TUNE OF PSYCHO KILLER BY THE TALKING HEADS AND SALES MAN A SPOOF OF SOUL MAN LAST POPULARIZED BY THE BLUES BROTHERS THEIR FELLOW EMPLOYEES AND MANAGEMENT CALLED FOR ENCORES THE SEXTET MOST OF THEM FORMER SYSTEMS ENGINEERS TOOK ITS NAME FROM THE SLANG FOR TECH NERDS PROPELLERHEADS LAST YEAR IN BOSTON THE TALKING PROPELLERHEADS WON THE LOTUS WORLD BATTLE OF THE BANDS FUNDRAISER BY OUTPERFORMING GROUPS FROM LOTUS DEVELOPMENT DIGITAL EQUIPMENT AND COMPUTERVISION ACCORDING TO DAN FENNELLY KEYBOARDIST AND BASS GUITARIST THEIR SONGS POKE FUN AT THEMSELVES THEIR COMPETITORS AND THE COMPUTER INDUSTRY THEY NOW PRODUCE THEIR OWN ROCK TRAINING VIDEOS AND SONGS TO INTRODUCE NEW EMPLOYEES TO THE DATA GENERAL CORPORATE CULTURE IN COBOL WIZARD TO THE MUSIC OF PINBALL WIZARD FROM THE WHO'S ROCK OPERA TOMMY THEY PROCLAIM EVER SINCE I WAS A YOUNG BOY I USED TO WRITE COBOL FROM MAINFRAMES DOWN TO MICROS I MUST HAVE DONE THEM ALL BUT I AIN'T SEEN NOTHING LIKE HIM IN ANY SALES OFFICE STALL THAT DEAF DUMB AND BLIND KID SURE WRITES A MEAN COBOL WE REPRESENT THE HEART AND SOUL OF THE COMPUTER INDUSTRY SAYS MR FENNELLY SPOOFING CLASSIC ROCKANDROLL SONGS TO INSPIRE OUR SALES FORCE AND OUR NATIONAL CUSTOMERS 9404180156 940418 BUSINESS BRIEF TRW WILL PAY 29 MILLION TO SETTLE FEDERAL CASE INVOLVING MILITARY JOBS CLEVELAND TRW INC AGREED TO PAY THE GOVERNMENT 29 MILLION TO SETTLE CLAIMS THAT EMPLOYEES OVERCHARGED THE US ON MILITARY SUBCONTRACTS TRW SAID IT PREVIOUSLY PAID A DEPOSIT OF 164 MILLION TOWARD CIVIL RESTITUTION AND WILL NOW PAY ANOTHER 126 MILLION TO RESOLVE THE MATTER IT SAID THE SETTLEMENT WITH THE JUSTICE DEPARTMENT WILL NOT HAVE A MATERIAL EFFECT ON ITS EARNINGS THE CASE STEMS FROM A TRW INVESTIGATION IN 1984 WHICH FOUND THAT EMPLOYEES IN TWO UNITS IN EUCLID OHIO OVERCHARGED THE GOVERNMENT FOR ABOUT SIX YEARS BY PADDING LABOR HOUR ESTIMATES IN THE PRODUCTION OF AIRCRAFT AND TANK ENGINE COMPONENTS TRW DISCLOSED ITS FINDINGS TO THE GOVERNMENT WHICH BEGAN INVESTIGATING THE COMPANY SOLD THE UNITS IN 1986 AS PART OF A CORPORATE RESTRUCTURING THE GOVERNMENT'S CRIMINAL INVESTIGATION ENDED IN 1988 AND TRW PLEADED GUILTY TO THREE COUNTS OF CONSPIRACY AND PAID 3 MILLION IN FINES AND PENALTIES FIVE EMPLOYEES WERE CONVICTED OF FEDERAL CRIMES IN CONNECTION WITH THE CASE ACCORDING TO THE JUSTICE DEPARTMENT ON THE CIVIL SIDE THREE TRW EMPLOYEES WHO HAD BEEN FIRED FOR OVERCHARGING THE GOVERNMENT FILED A LAWSUIT AGAINST THE COMPANY IN APRIL 1986 UNDER THE FALSE CLAIMS ACT THE JUSTICE DEPARTMENT SUBSEQUENTLY TOOK OVER THE SUIT WHICH CLAIMED TRW OVERCHARGED THE GOVERNMENT ON DEFENSE SUBCONTRACTS FOR AIRCRAFT PARTS AND EQUIPMENT THE THREE FORMER EMPLOYEES WERE EVENTUALLY DISMISSED FROM THE ACTION FRIDAY'S AGREEMENT SETTLES THE JUSTICE DEPARTMENT'S SUIT US ATTORNEY EMILY M SWEENY SAID THE SETTLEMENT AND THE EARLIER GUILTY PLEAS OF TRW AND FIVE HIGHRANKING EMPLOYEES BRINGS TO A CONCLUSION THE GOVERNMENT'S 10YEAR EFFORT TO MAKE TRW ACCOUNTABLE FOR ITS FRAUDULENT ACTIVITIES TRW BASED IN CLEVELAND PROVIDES ADVANCED TECHNOLOGY PRODUCTS AND SERVICES FOR THE AUTOMOTIVE SPACE AND DEFENSE AND INFORMATION MARKETS C THOMAS HARVIE VICE PRESIDENT AND ASSOCIATE GENERAL COUNSEL SAID TRW DEEPLY REGRETS THAT THE INCIDENTS EVER OCCURRED AND WE ARE HAPPY TO PUT THIS MATTER BEHIND US THE COMPANY FIRMLY BELIEVES THAT THE PROBLEM RESULTED FROM THE ACTIONS OF A HANDFUL OF EMPLOYEES WHO WERE TERMINATED FROM THE COMPANY AT THE TIME 9404180155 940418 DIGITAL EQUIPMENT PROMISES OVERHAUL AFTER REPORTING WIDER 3RDPERIOD LOSS BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL DIGITAL EQUIPMENT CORP EXECUTIVES ACKNOWLEDGING SURPRISE AT THE SIZE OF THE COMPANY'S LOSS IN ITS FISCAL THIRD QUARTER PROMISED A SIGNIFICANT RESTRUCTURING ANALYSTS PREDICTED THAT DIGITAL WHICH IS BASED IN MAYNARD MASS WILL BE FORCED TO SHED 10000 TO 20000 MORE WORKERS AT A COST OF 500 MILLION TO 1 BILLION IN CHARGES THOSE LAYOFFS AND CHARGES WOULD COME AFTER DIGITAL SHEDS SOME 7000 MOSTLY TEMPORARY WORKERS DURING THE CURRENT QUARTER TO REACH A GOAL OF A TOTAL WORK FORCE OF 85000 BY THE END OF ITS FISCAL YEAR JUNE 30 THE PROBABLE LAYOFFS ARE ANOTHER POTHOLE ON NEW ENGLAND'S BUMPY ROAD TO ECONOMIC RECOVERY ON FRIDAY DIGITAL REPORTED THAT ITS LOSS IN THE QUARTER ENDED APRIL 2 WIDENED TO 1833 MILLION OR 134 A SHARE FROM 301 MILLION OR 23 CENTS A SHARE A YEAR EARLIER REVENUE FELL AN UNEXPECTEDLY LARGE 6 TO 326 BILLION FROM 345 BILLION MOSTLY DUE TO AN 11 DROP IN SERVICE REVENUE STUNNED INVESTORS RUSHED TO UNLOAD DIGITAL STOCK DRIVING ITS PRICE DOWN 5875 OR 20 TO 23 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FRIDAY LEADING A SELLOFF IN COMPUTER ISSUES DIGITAL'S CLOSE WAS ITS LOWEST SINCE 1978 ITS RECORD HIGH WAS 199 IN 1987 IN A CONFERENCE CALL WITH ANALYSTS ROBERT PALMER PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID MAJOR RESTRUCTURING IS NEEDED BECAUSE I KNOW WE'RE NOT COSTCOMPETITIVE AND WE'RE MOVING TO CORRECT THAT AS RAPIDLY AS WE CAN HE SAID HE WAS PARTICULARLY DISAPPOINTED BECAUSE IN EACH OF THE FIVE PREVIOUS QUARTERS SINCE HE SUCCEEDED DIGITAL'S FOUNDER KENNETH OLSEN AS CHIEF EXECUTIVE THE COMPANY HAD REPORTED IMPROVEMENT OVER YEAREARLIER RESULTS INCLUDING ONE PROFITABLE QUARTER HE DECLINED TO PREDICT WHEN DIGITAL WILL RETURN TO PROFITABILITY THE LATEST RESULTS RENEWED SPECULATION ABOUT HOW LONG DIGITAL'S BOARD WILL GIVE MR PALMER TO SOLVE THE COMPANY'S PROBLEMS JUST LAST SUMMER ANALYSTS WERE SAYING HE HAD STABILIZED DIGITAL BUT IN RECENT MONTHS COST CUTTING 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 CONTINUED INABILITY TO GENERATE REVENUE FAST ENOUGH FROM ITS NEW ALPHACHIP COMPUTERS OR TO SLASH COSTS FAST ENOUGH TO MAKE UP FOR LOST REVENUE FROM ITS OLDER MORE PROFITABLE VAX COMPUTER LINES SERVICE REVENUE A MAINSTAY IN THE PAST ALSO FELL IN THE LATEST QUARTER GROSS PROFIT MARGINS DROPPED 10 PERCENTAGE POINTS ON A YEAR TO YEAR 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 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 1 A SHARE LOSS NEXT YEAR INSTEAD OF A 50 CENT PROFIT AFTER THE EARNINGS ANNOUNCEMENT STANDARD & POOR'S DOWNGRADED ITS RATING ON DIGITAL'S SENIOR DEBT TO TRIPLEB FROM TRIPLEBPLUS AND PUT THE RATINGS ON CREDITWATCH WITH NEGATIVE IMPLICATIONS MOODY'S INVESTORS SERVICE PUT THE DEBT UNDER REVIEW FOR POSSIBLE DOWNGRADE ANALYSTS WERE SURPRISED THAT DIGITAL HADN'T TIGHTENED ITS BELT MUCH DURING THE PAST QUARTER AN ADVERTISING AND MARKETING CAMPAIGN BOOSTED SALES COSTS THE ENDOFQUARTER PAYROLL OF 92000 WAS DOWN JUST 200 FROM THE PREVIOUS QUARTER THE NUMBER INCLUDES 6300 TEMPORARY WORKERS DIGITAL SAID SALES OF ITS PERSONAL COMPUTERS ALPHA WORKSTATIONS DISK DRIVES AND NETWORKING PRODUCTS ROSE STRONGLY IN THE QUARTER BUT DIDN'T OFFSET DECLINING SALES OF ITS OLDER VAX COMPUTERS AND WORKSTATIONS PROFIT MARGINS ON VAX ARE ABOUT SEVEN PERCENTAGE POINTS HIGHER THAN MARGINS ON ALPHA SAID WILLIAM STEUL CHIEF FINANCIAL OFFICER SOME ALPHA SALES WERE HELD BACK BECAUSE DIGITAL HADN'T ORDERED ENOUGH COMPONENTS TO MEET DEMAND THE ALPHA IS A HIGHPERFORMANCE MICROPROCESSOR THE DROP IN SERVICE REVENUE WHICH HAS LONG BEEN A BULWARK FOR DIGITAL ALSO SURPRISED SOME OBSERVERS MR PALMER SAID THAT ONE REASON IS THAT VAX CUSTOMERS ARE REPLACING THEIR OLD DISK DRIVES WHICH ACCOUNTED FOR 40 OF SERVICE COSTS WITH NEW ONES THAT DON'T BREAK DOWN AS MUCH STEVEN MILUNOVICH AN ANALYST WITH MORGAN STANLEY & CO SAID THEY'RE IN A CATCH22 SITUATION THE BETTER ALPHA DOES THE WORSE VAX DOES AND THE WORSE SERVICE DOES NAVIGATING THE CHANGE MR PALMER SAID DIGITAL HAS MADE SEVERANCE PAYMENTS TO 40000 PEOPLE IN THE PAST TWO YEARS HE SAID FURTHER CUTS ARE INCREASINGLY DIFFICULT RELATIVE TO COMPETITORS DIGITAL IS OVERSTAFFED WITH DIRECT SALESPEOPLE MR PALMER SAID BUT DIGITAL HAS LESSDEVELOPED AVENUES OF INDIRECT SALES COMPETITORS CREATE UP TO HALF THEIR SALES THROUGH RETAILERS AND OTHER COMPUTER RESELLERS WHILE DIGITAL GETS ONLY 25 OF SALES THROUGH SUCH THIRD PARTIES ANALYSTS ESTIMATED MR PALMER SAID THE PROBLEM IS IF WE TAKE OUT SALES FORCE FASTER THAN WE BRING IN INDIRECT CHANNELS REVENUES WILL DECLINE FASTER THAN COSTS HE ADDED WE KNOW WHAT TO DO BUT THERE'S A QUESTION OF HOW TO NAVIGATE HE ALSO SAID THAT TO PRESERVE ITS INSTALLED BASE DIGITAL HAS TO CONTINUE TO INVEST IN IMPROVING VAX COMPUTERS AND SOFTWARE EVEN THOUGH THAT MARKET IS DECLINING HE SAID THAT DIGITAL HAS DONE A GOOD JOB OF DEFENDING ITS INSTALLED BASE BY KEEPING VAX CUSTOMERS OR MOVING THEM TO ALPHA HE PREDICTED THAT ALPHA WILL START WINNING NEW BUSINESS FROM COMPETITORS NOW THAT NEW SOFTWARE FOR COMMERCIAL MARKETS UNVEILED LAST WEEK IS FINALLY AVAILABLE 9404180154 940418 CREDIT MARKETS TOUGH TIMES PLAGUE MORTGAGEBACKED SECURITIES BY BARBARA DONNELLY GRANITO AND LAURA JERESKI STAFF REPORTERS OF THE WALL STREET JOURNAL YOU DON'T HAVE TO BE A HIGHROLLING HEDGEFUND MANAGER TO BE A LOSER IN MORTGAGEBACKED SECURITIES YOU CAN JUST BE A PLAIN OLD INVESTOR MORTGAGEBACKED SECURITIES LARGELY MISSED OUT ON THE BOND MARKET'S RALLY OF THE PAST FEW YEARS THEN JUST WHEN THE WORST SEEMED TO BE OVER RATES SHOT UP BONDS TUMBLED AND THESE SECURITIES GOT SLAMMED WORSE THAN MOST WHAT GIVES BLAME IT ON AMERICAN HOMEOWNERS WHOSE MORTGAGES ARE USED TO BACK THESE BONDS AND WHOSE INCREASED FINANCIAL SHREWDNESS HAS BEEN MAKING A HASH OF THE MORTGAGEBACKED MARKET AFTER GORGING ON THE LOWEST MORTGAGE RATES IN ABOUT TWO DECADES HOMEOWNERS' APPETITES FOR REFINANCING ABRUPTLY WITHERED AS RATES TURNED UP AND AS HOMEOWNERS DECIDED TO HANG ONTO THEIR MORTGAGES LONGER PREPAYMENT ASSUMPTIONS FELL AS A RESULT EXPECTED MATURITIES OF MORTGAGEBACKED BONDS STRETCHED OUT LIKE SILLY PUTTY THAT TRAPPED MORTGAGEBACKED INVESTORS IN A CRUEL TWIST OF FATE KNOWN AS EXTENSION IN THE MIDDLE OF THE BOND MARKET'S WORST PLUNGE SINCE 1987 THEIR SUPPOSEDLY HIGHYIELDING SHORTTERM BONDS SUDDENLY TURNED INTO RELATIVELY LOWYIELDING LONGTERM BONDS THE WORST OF BOTH WORLDS CERTAIN MORTGAGE DERIVATIVES OR COLLATERALIZED MORTGAGE OBLIGATIONS HAVE BEEN MOST VIOLENTLY TORPEDOED BY EXTENSION BUT EVEN PLAIN VANILLA MORTGAGEBACKED SECURITIES LIKE THE ONES PACKED INTO US GOVERNMENT SECURITIES FUNDS HAVE BEEN HIT MORTGAGEBACKED SECURITIES WITH COUPONS OF 75 OR LESS HAVE BEEN PARTICULARLY VULNERABLE TO SLOWER PREPAYMENTS AS HOMEOWNERS ARE LOATH TO GIVE UP MORTGAGES WITH SUCH CHEAP RATES MORTGAGE RATES NOW TOP 8 THEIR HIGHEST POINT IN MORE THAN A YEAR NO ONE EXPECTED PREPAYMENTS TO GRIND TO A HALT LIKE THIS SAYS GUY CECALA PUBLISHER OF INSIDE MORTGAGE SECURITIES AN INDUSTRY NEWSLETTER THE REPERCUSSIONS CAN BE SEEN IN THE SALOMON BROTHERS MORTGAGE SECURITIES INDEX WHOSE AVERAGE MATURITY NOW IS SLIGHTLY LONGER THAN A SEVENYEAR BOND IN THE FOURTH QUARTER OF LAST YEAR THAT SAME INDEX HAD THE PROFILE OF A 46YEAR BOND IN PRACTICAL TERMS THAT MEANS THAT MORTGAGE SECURITIES ARE ALMOST TWICE AS SENSITIVE TO INTEREST RATE SWINGS AS THEY WERE JUST A FEW MONTHS AGO FOR INSTANCE IF RATES ROSE ANOTHER ONE PERCENTAGE POINT FROM TODAY'S LEVELS THE AVERAGE MORTGAGEBACKED BOND WOULD FALL ABOUT 43 IN PRICE IN LATE 1993 A ONEPERCENTAGEPOINT RISE IN RATES WOULD HAVE CAUSED SUCH A BOND TO FALL ONLY ABOUT 25 IN PRICE THAT'S THE OPPOSITE OF WHAT HAPPENS TO NORMAL BONDS SUCH AS US TREASURY BONDS WHICH TEND TO GET SLIGHTLY LESS PRONE TO LOSSES AS RATES HEAD HIGHER MAKING THINGS WORSE FOR MORTGAGEBACKED INVESTORS IS THAT THEIR YIELDS REMAIN FROZEN AT SHORTTERM LEVELS EVEN AS THEIR BONDS GET LONGER AND LONGER SO FOR INSTANCE WHAT SEEMED LIKE A JUICY YIELD ON A 46YEAR BOND LOOKS A LOT STINGIER ON A SEVENYEAR BOND THE MARKET NOT BEING FOOLISH FACTORS THIS INTO THE PRICES OF MORTGAGEBACKED BONDS AS THEY EXTEND FOR INSTANCE EVEN IF INTEREST RATES DIDN'T BUDGE A BIT THE RECENT 25YEAR EXTENSION OF THE AVERAGE MORTGAGEBACKED BOND WOULD COST INVESTORS AS MUCH AS FIVE POINTS OR 50 ON EVERY 1000 WORTH OF BONDS SAYS WILLIAM POWERS A PORTFOLIO MANAGER OF MORTGAGEBACKED SECURITIES AT PACIFIC INVESTMENT MANAGEMENT CO AND THE HIGHER INTEREST RATES GO THE MORE MORTGAGEBACKED BONDS WILL EXTEND THAT MEANS YOUR PORTFOLIO IS ALWAYS CHANGING IN A WAY THAT SHORTCHANGES INVESTORS NO MATTER WHAT RATES DO SAYS MR POWERS TO BE A PASSIVE INVESTOR IN MORTGAGES AS MANY INDIVIDUAL INVESTORS ARE IS A RECIPE FOR UNDERPERFORMANCE HE SAYS THE RAVAGES OF EXTENSION ARE EVEN MORE OBVIOUS IN CERTAIN TYPES OF CMOS THESE BONDS ARE CREATED BY CARVING UP THE INTEREST AND PRINCIPAL CASH FLOWS FROM TRADITIONAL MORTGAGEBACKED SECURITIES INTO NEW SECURITIES EACH WITH ITS OWN IDIOSYNCRATIC YIELD MATURITY AND OTHER CHARACTERISTICS SOME CMOS ARE SPECIALLY DESIGNED TO BE DEVOID OF EXTENSION RISK WHILE OTHERS ARE LOADED UP WITH MORE THAN THEIR FAIR SHARE TAKE THE CASE OF THE FOLLOWING CMO ISSUED BY THE FEDERAL HOME LOAN MORTGAGE CORP WHICH GOES BY THE CATCHY NAME OF FHR 1579 PQ THIS IS WHAT'S KNOWN AS A TIERTWO PLANNED AMORTIZATION CLASS BOND WHICH IN SIMPLE TERMS MEANS IT'S SUPPOSED TO BE SOMEWHAT INSULATED FROM EXTENSION RISK AT MORTGAGE PREPAYMENT ASSUMPTIONS THAT PREVAILED IN EARLY MARCH THESE BONDS HAD THE SAFELOOKING MATURITIES OF TWOYEAR NOTES AND FABULOUS YIELDS OF MORE THAN TWO PERCENTAGE POINTS MORE THAN COMPARABLE TREASURY BONDS THAT MIGHT HAVE LOOKED TEMPTING BUT INVESTORS SHOULD BE GLAD THEY DIDN'T TAKE THE BAIT IN JUST FIVE WEEKS AS PREPAYMENT ASSUMPTIONS SLOWED AVERAGE MATURITIES OF THESE BONDS HAVE ROUGHLY SEPTUPLED TO ABOUT 15 YEARS AND THEIR PRICES PLUMMETED ONE TRADER ESTIMATES THAT AS MUCH AS 30 OF THE 323 BILLION OF NEW CMOS ISSUED LAST YEAR HAVE SUCH HYPERSENSITIVITY TO EXTENSION RISK MUCH MORE THAN IN PRIOR YEARS WHY SO MUCH LAST YEAR WHEN INTEREST RATES WERE LOW INVESTORS WERE AFRAID MORTGAGE PREPAYMENTS WOULD ACCELERATE AS HOMEOWNERS RUSHED TO REFINANCE AND HOME SALES PICKED UP WHEN RATES ARE FALLING PREPAYMENTS HURT MORTGAGEBACKED INVESTORS BECAUSE IT MEANS THEIR BONDS RETIRE FASTER THAN EXPECTED LEAVING THEM TO REINVEST THEIR MONEY AT UNAPPETIZING YIELDS UNDERWRITERS WERE HAPPY TO OBLIGE INVESTORS BY STRUCTURING CMOS WITH IMPROVED PROTECTION FROM PREPAYMENTS BUT THE RISK THAT WAS EXTRACTED FROM THOSE CMOS LIKE TOXIC WASTE DIDN'T JUST GO AWAY IT HAD TO BE PUT SOMEWHERE SO IT WAS DUMPED INTO OTHER CMOS MAKING THEM ALL THE MORE VOLATILE INSTEAD OF STRETCHING OUT JUST A LITTLE AS RATES BACKED UP THESE BONDS HAVE EXTENDED WILDLY BECAUSE OF THE COMPLEX WAYS THAT THE CASH FLOWS FROM THE UNDERLYING MORTGAGES WERE DESIGNED TO BE DISTRIBUTED TRADERS TELL STORIES OF TWOYEAR BONDS EXPLODING INTO 20YEAR BONDS IN THE BLINK OF AN EYE MANY OF THESE SUPPOSEDLY SHORT TERM CMOS WERE FAVORED BY BANKS AND INSURANCE COMPANIES SAY WALL STREET RESEARCH ANALYSTS EXTENSION RISK IS ESPECIALLY PRONOUNCED IN PRINCIPAL ONLY BONDS THESE CMOS AS THEIR NAME SUGGESTS RECEIVE ONLY PRINCIPAL PAYMENTS FROM THE UNDERLYING MORTGAGES THEY'RE SOLD AT DEEP DISCOUNTS FROM FACE VALUE LIKE ZEROCOUPON BONDS AND INVESTORS GET NO CASH EXCEPT FROM PRINCIPAL REPAYMENT BUT AS RATES RISE AND PREPAYMENTS SLOW POS' AVERAGE LIVES CAN EASILY EXTEND TO 22 YEARS FROM FIVE YEARS SAYS PIMCO'S MR POWERS PRICES OF POS HAVE PLUNGED IN RECENT WEEKS FOR EXAMPLE POS BACKED BY 85 MORTGAGES LOST 10 OF THEIR VALUE BY THE TIME RATES BACKED UP JUST 05 PERCENTAGE POINT TRADERS SAY MEANWHILE POS WITH 65 COUPONS WHOSE PREPAYMENTS HAVE JUST ABOUT DRIED UP WERE RECENTLY QUOTED AT A PRICE OF 58 CENTS ON THE DOLLAR DOWN A STUNNING 27 FROM JUST A FEW WEEKS AGO THE SESSION BEGAN UNDER THE CLOUD OF A FRONTPAGE STORY IN THE NEW YORK TIMES DESCRIBING THE FEDERAL RESERVE'S INTENTIONS TO RAISE INTEREST RATES THE STORY WAS WIDELY BELIEVED TO HAVE LITTLE INFORMATION THAT WAS NEW TO THE MARKET BUT IT CONFIRMED THE PREVAILING BEARISH SENTIMENT ITS PLACEMENT ON THE FRONT PAGE LED MANY TO SPECULATE THAT THE FED MAY HAVE BEEN TRYING TO SEND A MESSAGE MOST OF THESE VIEWS WERE GENERATED IN OVERSEAS TRADING LATE THURSDAY NIGHT AND EARLY FRIDAY THE LOWER PRICES CARRIED THROUGH INTO THE EARLY MORNING HOURS OF NEW YORK TRADING WITH THE BENCHMARK 30YEAR BOND DOWN 3/8 OF A POINT WHEN THE INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION FIGURES WERE RELEASED HOWEVER THE MARKET PICKED UP ERASING MOST OF THE LOSSES PRICES THEN BOUNCED AROUND MOST OF THE SESSION TO END MOSTLY HIGHER THE FEDERAL RESERVE REPORTED EARLY IN THE SESSION THAT US INDUSTRIAL PRODUCTION ROSE 05 IN MARCH COMPARED WITH A 06 RISE IN FEBRUARY ECONOMISTS HAD EXPECTED AN INCREASE OF 06 IN MARCH ALSO CAPACITY UTILIZATION REACHED 836 IN MARCH UP FROM 834 IN FEBRUARY BUT NOT ENOUGH TO SPARK WORRIES THAT THE ECONOMY IS GROWING AT A GANGBUSTER PACE STILL THE FIGURES MARKED A CONTINUATION OF THE TREND THAT HAS DRIVEN FED POLICY THIS YEAR BOND INVESTORS FEAR ROBUST ECONOMIC GROWTH BECAUSE IT CAN LEAD TO INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN ON FRIDAY THE PRICE OF THE BENCHMARK 30YEAR BOND ROSE JUST 1/32 TO 87 14/32 TO YIELD 728 VIRTUALLY UNCHANGED FROM THURSDAY JAMES KENNEY HEAD TRADER AT PRUDENTIAL SECURITIES INC SAID HE FINDS IT DIFFICULT TO MAKE TOO MUCH OUT OF ANY ECONOMIC FIGURES PARTICULARLY ONES THAT CONFIRM WHAT HAS BEEN OBVIOUS MARKET PARTICIPANTS HAVE REACTED POSITIVELY TO NUMBERS IN THE PAST ONLY TO HAVE THE MARKET SUDDENLY RETREAT THAT'LL BE THE SCENARIO WE'LL WATCH FOR A WHILE HERE MR KENNEY SAID THE FED HAS CHOSEN THE DIRECTION OF RATES NOW THE QUESTION IS HOW HIGH WILL THEY GO THAT WILL DEPEND ON HOW MUCH THE FED RAISES RATES AND HOW ROBUST THE ECONOMY DEVELOPS AS THE YEAR GOES ON THOSE ARE THE QUESTIONS THAT ARE UNANSWERED MR KENNEY SAID DEBATE ABOUT WHEN THE FED WILL RAISE SHORTTERM RATES AGAIN HAS BEEN SPLIT BETWEEN THOSE WHO BELIEVE IT WILL RAISE RATES BEFORE THE NEXT FEDERAL OPEN MARKET COMMITTEE MEETING ON MAY 17 AND THOSE WHO BELIEVE THE FED WILL MOVE EARLIER 9404180153 940418 NORTHWEST AIRLINES TO OFFER SUMMER FARE DISCOUNTS MINNEAPOLIS NORTHWEST AIRLINES SAID IT WOULD OFFER BEGINNING TODAY AND THROUGH APRIL 27 PRICE CUTS OF AS MUCH AS 40 ON A LIMITED NUMBER OF SEATS FOR SUMMER TRAVEL SUCH 10DAY SALES HAVE BECOME ROUTINE IN THE AIRLINE BUSINESS AND OTHER MAJOR CARRIERS ARE EXPECTED TO MATCH THE MOVE BECAUSE OF RESTRICTIONS AND THE LIMITED NUMBER OF SEATS THE SALES ARE NOT EXPECTED TO AFFECT AIRLINE PROFITABILITY MUCH NORTHWEST SAID THE LOWER PRICES ARE GOOD ON FLIGHTS FROM MAY 18 THROUGH SEPT 12 MUST BE PURCHASED 30 DAYS IN ADVANCE AND IN MOST CASES REQUIRE STAYING OVER A SATURDAY NIGHT THERE ARE OTHER RESTRICTIONS NORTHWEST ANNOUNCED THE SALE LATE YESTERDAY IN HOPES THAT OTHER CARRIERS WOULDN'T BE ABLE TO MATCH THE FARES FOR A FULL DAY OF BUSINESS A SPOKESMAN SAID TRAVEL WITHIN THE US AND SOME OTHER DESTINATIONS IS COVERED 9404180152 940418 FOREIGN EXCHANGE DOLLAR IS EXPECTED TO CONTINUE TRADING IN A NARROW RANGE UNTIL NEWS CHANGES BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK IT WILL TAKE ANOTHER US INTEREST RATE INCREASE CALMER US FINANCIAL MARKETS OR A CLEAR NEW POLICY ON THE USJAPAN TRADE FRONT TO DRIVE THE DOLLAR FROM ITS RECENT TIGHT RANGES CURRENCY PLAYERS SAID WITHOUT THOSE FACTORS THEY SAID FOREIGN EXCHANGE MARKETS ARE DOOMED TO MORE OF THE QUIET TRADING THAT EVOKED ADJECTIVES LIKE FRUITLESS AND PITIFUL LAST WEEK FROM TRADERS AND BROKERS FOR WHOM STEADY EXCHANGE RATES MEAN LITTLE OPPORTUNITY TO MAKE MONEY SINCE APRIL 4 THE DOLLAR HAS BEEN MIRED IN RANGES OF THREEANDAHALF PFENNIGS AND THREEANDAHALF YEN WITH RALLIES AND SELLOFFS QUICKLY RUNNING OUT OF STEAM LATE FRIDAY IN NEW YORK THE DOLLAR TRADED AT 17135 MARKS AND 10345 YEN COMPARED WITH 16965 MARKS AND 10360 YEN AT THE END OF THE PREVIOUS WEEK ABOUT NOON MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 10330 YEN AND AT 17132 MARKS A SHIFT IN THE YEN IS MORE LIKELY THAN IN THE MARK DEALERS SAID THAT EXPECTATION IS REFLECTED IN OPTIONS TRADING WHERE THE PRICES HAVE FALLEN MORE SHARPLY FOR MARK OPTIONS THAN FOR YEN OPTIONS IN RECENT SESSIONS ECONOMIC FUNDAMENTALS DICTATE A STRONGER DOLLAR AGAINST THE YEN ANALYSTS SAID IF THE FEDERAL RESERVE BANK OF NEW YORK SUPPORTS THE DOLLAR THEY SAID DEALERS WILL ASSUME THAT THE US WON'T BLOCK ITS RISE THAT WOULD SEND A SIGNAL SAID ROBERT BRICHKOWSKI CURRENCY OPTIONS TRADER AT DAI ICHI KANGYO BANK THAT WOULD BE A DEFINITE CAUSE FOR THE DOLLAR TO GO HIGHER GAINS AGAINST THE YEN WOULD PROBABLY HELP LIFT THE DOLLAR ACROSS THE BOARD HE ADDS AND IF THE FED DOESN'T INTERVENE SOME CURRENCY PARTICIPANTS SAID THE DOLLAR WILL SINK TO 100 YEN IF THE GOVERNMENT REPLACING THAT OF PRIME MINISTER MORIHIRO HOSOKAWA WHO RESIGNED APRIL 8 PROVES UNCOMPROMISING ON TRADE ISSUES THE MOVE COULD COME QUICKLY THEY SAY THE ONLY THING PREVENTING US FROM DROPPING THROUGH 100 IS INTERVENTION SAID JOHN WARTMAN CURRENCY STRATEGIST AT PRUDENTIAL SECURITIES INC AT THE PHILADELPHIA STOCK EXCHANGE WHERE CURRENCY OPTIONS ARE TRADED HE NOTES THAT FOREIGN MINISTER TSUTOMU HATA CONSIDERED A LIKELY PRIME MINISTERIAL PROSPECT WAS INDIRECTLY CRITICAL OF THE US AT LAST WEEK'S MEETING OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE MR HATA CRITICIZED ABUSE OF ANTIDUMPING MEASURES UNILATERAL TRADE MEASURES AND REGIONALISM IF RHETORIC LIKE THAT CONTINUES THE DOLLAR WILL TRADE LOWER MR WARTMAN SAID MR HATA HAS A HAWKISH HISTORY ACCORDING TO DAVID DE ROSA FOREIGN EXCHANGE DIRECTOR AT SWISS BANK CORP HE RECALLED THAT MR HATA WAS AMONG JAPANESE OFFICIALS WHO FIERCELY OPPOSED THE USE OF INDEX ARBITRAGE OR TAKING ADVANTAGE OF THE DIFFERENCE BETWEEN PRICES OF JAPANESE SHARES AND STOCKINDEX FUTURES BY US SECURITIES FIRMS SEVERAL YEARS AGO HE IS VERY MUCH IN THE PROTECTIONIST MODE IN JAPAN MR DE ROSA SAID THE US IS NOT GOING TO GET CONCESSIONS OUT OF THAT GUY IN A HOSTILE ENVIRONMENT THE TREASURY DEPARTMENT WHICH GUIDES THE FED ON FOREIGN EXCHANGE INTERVENTION WILL BE DISINCLINED TO SUPPORT THE DOLLAR HE SAID A DOLLARMARK MOVE MAY HAVE TO WAIT FOR THE NEXT US RATE INCREASE TRADERS SAID AND EVEN THAT MIGHT NOT PROMPT A LASTING RALLY GERMAN RATES WILL REMAIN HIGHER MAKING IT COSTLY TO HOLD DOLLARS AGAINST MARKS SAID MR BRICHKOWSKI OF DAI ICHI EVEN THOUGH THE RATE GAP IS BECOMING TIGHTER IT'S STILL IN FAVOR OF MARKS HE SAID I WOULD LOOK FOR THE DOLLAR NOT TO GO ANYWHERE OTHERS ARGUE THAT THE NEXT RATE BOOST STILL ISN'T PRICED IN THE DOLLAR FAILED TO RALLY FRIDAY IN THE WAKE OF RESPECTABLE DATA ON US INDUSTRIAL PRODUCTION BECAUSE CURRENCY DEALERS DIDN'T READ THE NEWS AS A SIGNAL FOR FED TIGHTENING SAID MR DE ROSA OF SWISS BANK THE MARKET SOLD OFF ON THE IDEA THAT IT WAS NOT ENOUGH TO ENTICE THE FED TO MOVE HE SAID A DOLLAR RALLY MAY ALSO BE IMPOSSIBLE UNTIL THE DOUBTS SURROUNDING OTHER US FINANCIAL MARKETS ARE RESOLVED A CHEERIER OUTLOOK FOR US SECURITIES COULD ENCOURAGE DEALERS TO FOCUS ON STRONG ECONOMIC DATA SAID MR DE ROSA THERE'S A GOOD EXPANSION GOING ON HERE HE SAID YET THERE'S THIS FEELING OF UNCERTAINTY OF EDGINESS ABOUT MARKETS MR WARTMAN OF PRUDENTIAL SAID FURTHER MARKET TURMOIL IS LIKELY BUT HE EXPECTS IT TO LIMIT THE DOLLAR'S GAINS RATHER THAN DRIVE IT SHARPLY LOWER 9404180150 940418 ECONOMY INDUSTRIAL OUTPUT ROSE 05 IN MARCH INDICATING ECONOMY ISN'T OVERHEATING BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE LATEST ECONOMIC NEWS SUGGESTS THE ECONOMY IS STILL IMPROVING WITHOUT MUCH IN THE WAY OF GROWING PAINS INDUSTRIAL PRODUCTION ROSE 05 IN MARCH ACCORDING TO THE FEDERAL RESERVE THE INCREASE WAS BROADBASED THE 10TH IN A ROW AND COMES ON TOP OF AN UPWARDREVISED 06 RISE IN FEBRUARY THE FED SAID THE GROWTH WAS ACCOMPANIED BY ONLY A SLIGHT RISE IN CAPACITY UTILIZATION A LEADING INDICATOR OF INFLATION PRODUCTION RAN AT 836 OF CAPACITY LAST MONTH UP FROM 834 IN FEBRUARY ECONOMISTS SAID THE REPORT SUGGESTED THAT THE ECONOMY IS GROWING AT A FASTER PACE BUT NOT OVERHEATING THAT ANALYSIS SHOULD HELP TO CALM THE FINANCIAL MARKETS AT LEAST FOR NOW BEFORE THE FIGURES WERE RELEASED THE MARKETS WERE FEARFUL WE WERE ON A BORDERLINE BOOM THEY ARE RELIEVED BY THE DATA SAID PAUL MCCULLEY CHIEF ECONOMIST OF UBS SECURITIES INC IN NEW YORK BOTH THE STOCK AND BOND MARKETS HELD GENERALLY STEADY ON FRIDAY SEPARATELY ANOTHER REPORT ISSUED FRIDAY SHOWED CONSUMERS IN A BETTER MOOD IN THE EARLY PART OF APRIL THAN THEY HAD BEEN IN MARCH THE UNIVERSITY OF MICHIGAN CONSUMER SENTIMENT INDEX ROSE TO 942 FROM 915 ATTITUDES ABOUT CURRENT CONDITIONS ROSE WHILE EXPECTATIONS ABOUT THE FUTURE DROPPED A BIT BUSINESS EQUIPMENT CONTINUED TO BE THE REALLY BRIGHT SPOT IN MANUFACTURING WITH OUTPUT GROWING 07 IN MARCH AFTER A 11 GAIN IN FEBRUARY INFORMATIONPROCESSING EQUIPMENT IN PARTICULAR WAS STRONG OVERALL PRODUCTION OF BOTH DURABLE AND NONDURABLE GOODS WAS UP THE ONLY WEAK SPOTS IN THE LATEST REPORT WERE IN AUTOS AND UTILITIES ANALYSTS SAID AUTO OUTPUT COULDN'T HAVE SUSTAINED ITS QUICK PACE OF RECENT MONTHS AND SO FELL OFF TO AN ANNUAL RATE OF 13 MILLION CARS FROM 139 MILLION IN FEBRUARY THESE ANALYSTS EXPECT AUTO PRODUCTION TO PICK UP AGAIN THIS MONTH UTILITY OUTPUT FELL MAINLY BECAUSE OF MORE TEMPERATE WEATHER AFTER A FRIGID WINTER OVERALL ECONOMISTS SAID THE MANUFACTURING SECTOR IS GETTING STRONGER WE ARE SETTING OUR STAGE FOR COMPETITION SAID TOM RUNIEWICZ INDUSTRIAL ANALYST FOR THE WEFA GROUP IN SUBURBAN PHILADELPHIA HE SAID THAT WHEN DEMAND FINALLY PICKS UP IN EUROPE AND JAPAN AMERICAN COMPANIES WILL BE READY TO EXPORT IN LARGE QUANTITIES MORE EFFICIENTLY THAN THEY HAVE IN THE PAST NO ONE EXPECTS THE BIG INCREASES IN FACTORY OUTPUT TO LEAD TO MUCH ADDITIONAL EMPLOYMENT GROWTH IN THE MANUFACTURING SECTOR IS PRODUCTIVITYLED SAID EDWARD YARDENI CHIEF ECONOMIST OF CJ LAWRENCE WHILE MOST ANALYSTS WEREN'T CONCERNED ABOUT THE LEVEL OF CAPACITY THAT INDUSTRIES ARE USING TO MEET DEMAND SEVERAL INDUSTRIES ARE OPERATING ABOVE THE 90 MARK INCLUDING LUMBER IRON AND STEEL COMPUTER AND OFFICE EQUIPMENT CARS AND PAPER WHETHER OR NOT WE ARE AT A THRESHOLD FOR INFLATION WE'RE A WHOLE HELL OF A LOT CLOSER THAN WE WERE SIX MONTHS AGO SAID MR MCCULLEY OF UBS FEDERAL RESERVE GOV SUSAN PHILLIPS SPEAKING WITH REPORTERS IN NEW YORK FRIDAY ALSO SAID THAT WHILE THE ECONOMY HAS USED UP SOME OF ITS AVAILABLE SLACK THERE ARE NO SPECIFIC TRIGGER POINTS AT WHICH RISING CAPACITY UTILIZATION CREATES INFLATIONPRODUCING BOTTLENECKS THERE ARE SOME PRESSURES IN SOME MARKETS MS PHILLIPS TOLD REPORTERS THOSE PRESSURES APPEAR TO BE LIMITED TO AREAS OF STRONG DEMAND IN THE ECONOMY SUCH AS LUMBER FOR HOUSING AND STEEL FOR AUTO PRODUCTION SHE SAID HERE IS A SUMMARY OF THE FEDERAL RESERVE BOARD'S REPORT ON INDUSTRIAL PRODUCTION IN MARCH THE FIGURES ARE SEASONALLY ADJUSTED THE INDUSTRIAL PRODUCTION INDEX FOR MARCH STOOD AT 1156 OF THE 1987 AVERAGE 9404180149 940418 WHO'S NEWS CONCORD HOLDING CORP CONCORD HOLDING CORP NEW YORK GARY N KOCHER WAS NAMED TO THE NEW POSITION OF SENIOR EXECUTIVE VICE PRESIDENT OF THIS ADMINISTRATOR OF BANKRELATED MUTUAL FUNDS MR KOCHER 46 YEARS OLD WILL BE RESPONSIBLE FOR MANAGING CONCORD'S BUSINESS DEVELOPMENT AS WELL AS OVERSEEING ITS RETAIL DISTRIBUTION STRATEGY MR KOCHER IS A FORMER EXECUTIVE VICE PRESIDENT AT STAR BANC CORP IN CINCINNATI 9404180148 940418 TESTING OF RADIO SYSTEM ON TRAFFIC DATA PLANNED SEATTLE A GROUP OF ELECTRONICS COMPANIES AND STATE AGENCIES TODAY WILL ANNOUNCE PLANS TO TEST AN ELABORATE RADIO SYSTEM FOR LETTING CONSUMERS DODGE TRAFFIC JAMS THE TWOYEAR TEST HERE WILL BEAM INFORMATION ABOUT ACCIDENTS AND OTHER PROBLEMS TO WRISTWATCH PAGING DEVICES PERSONAL COMPUTERS AND A NEW TYPE OF DASHBOARD RADIO THAT CAN DISPLAY DATA A UNIT OF JAPAN'S SEIKO CORP WILL PROVIDE THE UNDERLYING TRANSMISSION SYSTEM WHICH USES SOCALLED SUBCARRIER SIGNALS THAT ARE INCLUDED IN FM RADIO CHANNELS SEIKO IS ALSO PROVIDING WRISTWATCH PAGERS WHICH CAN DISPLAY TWO LINES OF TEXT MESSAGES AT A TIME INTERNATIONAL BUSINESS MACHINES CORP WILL SUPPLY LAPTOP COMPUTERS EQUIPPED WITH A RECEIVING DEVICE ALLOWING INFORMATION ABOUT ROAD CONDITIONS TO BE INTEGRATED WITH MAPS SHOWING THE VEHICLE'S LOCATION AND PROPOSED ROUTES AROUND TRAFFIC TIEUPS DELCO ELECTRONICS CORP A UNIT OF GENERAL MOTORS CORP IS DEVELOPING CAR RADIOS THAT CAN DISPLAY TRAFFIC WARNINGS AND PAGING MESSAGES THE TEST IS SUPPORTED BY 55 MILLION FROM FEDERAL AND WASHINGTON STATE AGENCIES WHICH WILL HELP GATHER AND DISTRIBUTE TRAFFIC INFORMATION THE US DEPARTMENT OF TRANSPORTATION IS PROMOTING INTELLIGENT VEHICLE HIGHWAY SYSTEMS AS SUCH TECHNOLOGIES ARE CALLED TO MAKE BETTER USE OF THE EXISTING TRANSPORTATION INFRASTRUCTURE 9404180147 940418 LUKENS TO INCREASE STEEL PRICES COATESVILLE PA LUKENS INC SAID ITS LUKENS STEEL CO UNIT WILL RAISE PRICES ON MOST TYPES OF STEEL PLATE PRODUCTS BY 2 TO 4 FOR SHIPMENTS BEGINNING JULY 4 LUKENS'S MOVE FOLLOWS A SIMILAR INCREASE THURSDAY BY BETHLEHEM STEEL CORP STEEL PLATE IS USED IN BRIDGES POLLUTIONCONTROL SYSTEMS PRESSURE VESSELS SHIPS AND CONSTRUCTION EQUIPMENT 9404180146 940418 NETHERLANDS CONSUMER PRICES AMSTERDAM CONSUMER PRICES IN THE NETHERLANDS ROSE 06 IN MARCH FROM THE PREVIOUS MONTH AND WERE UP 29 FROM A YEAR EARLIER THE CENTRAL BUREAU FOR STATISTICS REPORTED THE HAGUEBASED BUREAU SAID THAT EXCLUDING CERTAIN INDIRECT AND CONSUMERRELATED TAXES THE MARCH CONSUMER PRICE INDEX WAS UP 06 FROM FEBRUARY AND 25 FROM A YEAR EARLIER 9404180145 940418 ALEXANDER & ALEXANDER SERVICES NEW YORK ALEXANDER & ALEXANDER SERVICES INC A RISK MANAGEMENT AND INSURANCE SERVICES COMPANY SAID IT FORMED GLOBAL BUSINESS UNITS IN HONG KONG SOUTH KOREA AND THAILAND THE COMPANY CURRENTLY OPERATES 40 OF THESE UNITS WHICH COORDINATE SERVICE TO RISK MANAGEMENT ACCOUNTS 9404180144 940418 INDUSTRY FOCUS AS ECONOMY GROWS CYCLICALS KEEP WARY EYE ON COSTS BY POLICING OVERHEAD THEY AIM FOR STEADIER PERFORMANCE IN NEXT DOWNTURN BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL LEO MCKERNAN CHAIRMAN OF CLARK EQUIPMENT CO IS A HAPPY MAN THESE DAYS PROFIT IS RISING AND HE EXPECTS BUSINESS TO REMAIN STRONG THROUGH 1996 NEVERTHELESS MR MCKERNAN IS BUSY PREPARING FOR THE NEXT ECONOMIC DOWNTURN AT ITS SOUTH BEND IND HEADQUARTERS CLARK EQUIPMENT IS HIRING OUTSIDE CONTRACTORS TO HANDLE LEGAL WORK MARKET RESEARCH AND SEVERAL OTHER PROFESSIONAL TASKS ONCE PERFORMED INHOUSE AND SPENDING ON CAPITAL EQUIPMENT AND RESEARCH FACES A RIGOROUS REVIEW TO SEE HOW IT MIGHT AFFECT THE COMPANY DURING ANY FUTURE RECESSION WE DO NOT WANT TO PUT ANYTHING IN THAT WE HAVE TO TAKE OUT MR MCKERNAN SAYS EVEN THOUGH CLARK EQUIPMENT HAS BEEN PROFITABLE IN BOOM TIMES THE FACT THAT IT REPEATEDLY HAD LOSSES DURING DOWNTURNS HE SAYS WAS DESTROYING OUR SHAREHOLDER VALUE WEARY OF THE BOOMANDBUST ROUTINES THAT ALTERNATELY ENERGIZE AND THEN DEMORALIZE THEIR COMPANIES MANY US MANUFACTURERS ARE TAKING AN UNUSUALLY DEFENSIVE APPROACH TO THE CURRENT ECONOMIC RECOVERY EVEN AS THEY REPORT HIGHER EARNINGS AND EXPECTATIONS OF MORE TO COME THEY HAVE BEEN SLOW TO HIRE ADDITIONAL WORKERS INSTEAD THEY CONTINUE TO EMBRACE COSTCUTTING MEASURES BY DOING SO THEY HOPE TO AT LEAST BREAK EVEN RATHER THAN LOSE MONEY DURING THE NEXT RECESSION MITCHELL FROMSTEIN CHAIRMAN OF MANPOWER INC A TEMPORARYHELP PROVIDER SAYS THE STAFF CUTS THAT HAVE SWEPT US COMPANIES COMBINED WITH CURRENT CAUTIOUS HIRING PRACTICES SHOULD MEAN FEWER LAYOFFS IN THE NEXT DOWNTURN I WOULD ALMOST GUARANTEE IT HE SAYS BUT ELIMINATING LOSSES IN A SLOWDOWN MIGHT PROVE DIFFICULT AND PERHAPS IMPOSSIBLE FOR MANUFACTURERS IN HIGHLY CYCLICAL BUSINESSES EXECUTIVES SAY MUCH WILL DEPEND ON THE EXTENT OF ANY DOWNTURN AND ITS EFFECT ON SALES IN INDUSTRIES ACCUSTOMED TO WIDE SWINGS IN BUSINESS STILL HEAVYEQUIPMENT MAKERS SUCH AS CATERPILLAR INC AND NAVISTAR INTERNATIONAL CORP WHICH HAD LOSSES IN PAST RECESSIONS HOPE TO MAKE CYCLICAL LOSSES A THING OF THE PAST ONE STRATEGY IS TO SHARPLY LOWER BREAKEVEN LEVELS DONALD FITES CHAIRMAN OF CATERPILLAR PEORIA ILL SAYS HIS COMPANY HAS LEARNED THAT THE COST STRUCTURE YOU PUT IN PLACE IN GOOD TIMES IS THE COST STRUCTURE YOU HAVE TO LIVE WITH IN HARD TIMES ALTHOUGH CATERPILLAR IS HIRING FACTORY WORKERS THIS SPRING IT STILL HAS A FREEZE ON WHITECOLLAR EMPLOYMENT AND ITS OVERALL WORLDWIDE EMPLOYMENT IS DOWN 15 SINCE 1989 TO 51417 THE NEW DISCIPLINE STEMS PARTLY FROM A REALIZATION THAT WITH GLOBAL COMPETITION US MANUFACTURERS CAN'T AFFORD TO GET FAT AND IF COMPANIES CONTINUE TO FOLLOW A TIGHTFISTED APPROACH SHAREHOLDERS AS WELL MIGHT SUFFER LESS IN THE NEXT RECESSION THERE SHOULD BE LESSVIOLENT SWINGS SAYS MITCHELL QUAIN INDUSTRIALEQUIPMENT ANALYST AT WERTHEIM SCHRODER & CO WHICH HELD AN INVESTMENT CONFERENCE RECENTLY ON INDUSTRIAL MANUFACTURING BUT GORDON RICHARDS ECONOMIST FOR THE NATIONAL ASSOCIATION OF MANUFACTURERS A TRADE GROUP THINKS MUCH WILL DEPEND ON MANUFACTURERS' ABILITY TO RESTORE PROFIT MARGINS WHICH HE SAYS HAVE FALLEN FROM AN AVERAGE OF 84 ON A PRETAX BASIS IN THE 1970S TO 68 IN THE 1980S AND 44 IN THE PAST FIVE YEARS MR RICHARDS SAYS THAT IF PROFIT MARGINS RETURN TO THE HEALTHIER LEVELS OF THE 1970S THERE COULD WELL BE FEWER JOB LOSSES IN THE NEXT RECESSION BUT IF MARGINS REMAIN LOW HE'D EXPECT MASSIVE NEW JOB REDUCTIONS IN THE NEXT DOWNTURN BY CUTTING COSTS NOW MANUFACTURERS ARE WORKING HARD TO AVOID THAT COMPANIES ARE BOOSTING REVENUE WITHOUT EXPANDING OVERHEAD SAYS WERTHEIM'S MR QUAIN FOR EXAMPLE EVEN AS COMPANIES MAKE ACQUISITIONS TO EXPAND MARKET SHARE THEY ARE ATTEMPTING TO KEEP EMPLOYMENT LEVELS AS LOW AS POSSIBLE THREE WEEKS AFTER ADDING 12500 WORKERS WITH THE ACQUISITION OF WESTINGHOUSE ELECTRIC CORP'S CONTROLS BUSINESS EATON CORP ANNOUNCED PLANS TO CUT 1200 EMPLOYEES AS IT MERGES THE UNIT INTO ITS OWN ELECTRICALEQUIPMENT BUSINESS AND STEPHEN HARDIS VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER SAYS EATON PLANS TO ADD JUST 50 WORKERS AT ITS CLEVELAND HEADQUARTERS TO SERVICE THE NEW EMPLOYEES MEANWHILE FRED BUTLER CHIEF EXECUTIVE OF MANITOWOC CO TOLD THE RECENT WERTHEIM CONFERENCE THAT HE PLANS TO CUT THE SIZE OF A UNIT THAT MAKES LARGE CRANES TO WHAT WE THINK THE MINIMUM MARKET IS AMONG OTHER THINGS THAT MEANS MOVING OUT OF TWO FACILITIES AND CUTTING EMPLOYMENT AT THE MANITOWOC WIS COMPANY AT CLARK EQUIPMENT CUTBACKS AND EFFORTS TO DECENTRALIZE HAVE PARED HEADQUARTERS EMPLOYMENT TO 62 FROM ABOUT 650 IN THE EARLY 1980S IN THE LONG RUN CLARK WILL BE LESS CYCLICAL BECAUSE OF WHAT WE'RE DOING SAYS ITS CHAIRMAN MR MCKERNAN 9404180143 940418 PEPPERAND SALT TO INCREASE THEIR PRIVATE SAVING IN AN OFFSHORE BANK WHICH PROMPTS THIS DELICATE QUERY GENERIC ILLEGAL OR PROPRIETARY 9404180142 940418 WHO'S NEWS SEAGRAM CO SEAGRAM CO MONTREAL ROBERT S BERGER 39 YEARS OLD WAS NAMED VICE PRESIDENT MARKET RESEARCH AND INFORMATION OF NEW YORKBASED JOSEPH E SEAGRAM & SONS INC THE US UNIT OF THIS PRODUCER AND MARKETER OF DISTILLED SPIRITS WINES FRUIT JUICES COOLERS AND MIXERS MR BERGER WHOSE APPOINTMENT FILLS A VACANCY WILL BE RESPONSIBLE FOR CORPORATE RESEARCH HE PREVIOUSLY WAS VICE PRESIDENT/GENERAL MANAGER BEVERAGES AT TROPICANA A DIVISION OF SEAGRAM BEVERAGE GROUP IN BRADENTON FLA 9404180141 940418 WHO'S NEWS KASLER HOLDING CO KASLER HOLDING CO HIGHLAND CALIF DARROL N GROVEN 50 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS DIVERSIFIED CONSTRUCTION COMPANY MR GROVEN WHO IS PRESIDENT OF KASLER'S WASHINGTON CONTRACTORS GROUP INC SUBSIDIARY ASSUMES THE CHIEF OPERATING OFFICER POST FROM DORN PARKINSON 47 WHO REMAINS PRESIDENT OF KASLER EXECUTIVE VICE PRESIDENT LEROY WILKES 51 WILL RESUME HIS PREVIOUS DUTIES AT WASHINGTON CORP AN AFFILIATED HOLDING COMPANY 9404180140 940418 EXECUTONE COMPLETES ASSET SALE DARIEN CONN EXECUTONE INFORMATION SYSTEMS INC COMPLETED THE SALE OF THE PRINCIPAL ASSETS OF ITS VODAVI COMMUNICATIONS SYSTEMS DIVISION TO V TECHNOLOGY ACQUISITION CORP EXECUTONE SAID THE SALE PRICE WAS ABOUT 10 MILLION WITH 12 MILLION IN THE FORM OF A SECURED NOTE PAYABLE WITHIN 18 MONTHS AND THE BALANCE PAID IN CASH EXECUTONE MAKES VOICEPROCESSING SYSTEMS FOR BUSINESSES AND HOSPITAL COMMUNICATIONS SYSTEMS ON THE NASDAQ STOCK EXCHANGE FRIDAY EXECUTONE CLOSED AT 250 DOWN 3125 CENTS OR 11 9404180139 940418 UKRAINIAN AIDE DEFENDS LINK WITH RUSSIA FINANCE MINISTER DENIES CLOSER ECONOMIC TIE IS THREAT TO AUTONOMY BY MARK M NELSON STAFF REPORTER OF THE WALL STREET JOURNAL ST PETERSBURG UKRAINE'S FINANCE MINISTER MOUNTED A VIGOROUS DEFENSE OF HIS COUNTRY'S DECISION TO DEVELOP CLOSER TIES TO RUSSIA AND SAID THE AGREEMENT DID NOT THREATEN UKRAINIAN INDEPENDENCE IN AN INTERVIEW DURING THE ANNUAL MEETING HERE OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT OR EBRD FINANCE MINISTER GRIGORY O PYATACHENKO TRIED TO PUT THE BEST FACE POSSIBLE ON HIS COUNTRY'S DECISION FRIDAY TO REESTABLISH ECONOMIC TIES THROUGH THE RUSSIADOMINATED COMMONWEALTH OF INDEPENDENT STATES HE SAID UKRAINE WOULD NOT GIVE UP ITS OWN CURRENCY OR ITS CENTRAL BANK BUT WOULD AGREE TO WORK THROUGH A CIS CENTRAL BANK TO COORDINATE ITS ECONOMIC AND MONETARY POLICES THE ECONOMIES OF UKRAINE AND RUSSIA ARE INTEGRATED AND THERE IS MUTUAL INTEREST TO DEVELOP ECONOMIC TIES BETWEEN OUR TWO NATIONS HE SAID AND IF OUR ECONOMIC POLICIES ARE VERY CLOSE OUR MONETARY POLICIES MUST BE ALIGNED AS WELL TRYING TO PLAY DOWN THE CONTROVERSY THAT THE AGREEMENT HAS CAUSED AT HOME MR PYATACHENKO ARGUED THAT THE DECISION WAS BASED ON PURELY PRACTICAL CONSIDERATIONS BUT UKRAINIAN NATIONALISTS CRITICIZED THE AGREEMENT SAYING IT WOULD LIMIT UKRAINE'S ABILITY TO DECIDE ITS INDEPENDENT FUTURE WE WILL STILL HAVE ECONOMIC INDEPENDENCE HE SAID SPEAKING IN A MAKESHIFT OFFICE SET UP FOR UKRAINE'S EBRD DELEGATION THIS IS CERTAIN BUT UKRAINE NEEDS MARKETS AND TECHNOLOGIES THAT ARE IN RUSSIA AND RUSSIA NEEDS TECHNOLOGIES AND MARKETS IN UKRAINE ANALYSTS AND BANKERS HERE SAID THE AGREEMENT SIGNALS NOT ONLY UKRAINE'S ECONOMIC AND POLITICAL WEAKNESS BUT THE GROWING ASSERTIVENESS OF MOSCOW IN THE AFFAIRS OF ITS NEIGHBORS UKRAINE THE SECONDLARGEST FORMER SOVIET REPUBLIC AFTER RUSSIA IS STILL TRYING TO FORM A GOVERNMENT AFTER THE INCONCLUSIVE NATIONAL ELECTIONS THAT WERE COMPLETED LAST WEEK RESULTS OF THAT POLL INDICATE A SPLIT BETWEEN FIERCELY NATIONALIST VOTERS IN THE WESTERN PART OF THE COUNTRY AND THE PRORUSSIAN POPULATION IN THE EASTERN INDUSTRIAL REGIONS AND CRIMEA LEADERS FROM OTHER FORMER SOVIET REPUBLICS ALSO AGREED TO GIVE MOSCOW A STRONGER ROLE IN THEIR ECONOMIC AND POLITICAL AFFAIRS UKRAINE WILL JOIN THE CIS ECONOMIC UNION A STEP THAT IT HAD RESISTED SINCE THE COUNTRY'S 1991 DECLARATION OF INDEPENDENCE THE CENTRAL ASIAN STATES AS WELL AS ARMENIA AND GEORGIA AGREED TO ALLOW RUSSIAN TROOPS TO JOIN THEIR OWN ARMIES IN PATROLLING THEIR BORDERS AND TO PERFORM CERTAIN PEACEKEEPING ROLES WITHIN THE FORMER SOVIET TERRITORY MR PYATACHENKO SAID UKRAINE'S TILT BACK IN THE DIRECTION OF MOSCOW WAS A MUTUALLY BENEFICIAL ARRANGEMENT ADDING THAT WESTERN REPORTS ABOUT THE TENSIONS INSIDE HIS COUNTRY HAD BEEN EXAGGERATED NO SPLIT IN UKRAINE WAS CONCEIVABLE HE SAID AND MOST UKRAINIANS ACCEPTED THE NEED TO COOPERATE MORE FULLY WITH RUSSIA THERE ARE MANY LIES THAT ARE BEING WRITTEN ABOUT UKRAINE IN THE WESTERN PRESS HE SAID MR PYATACHENKO WHO DESCRIBES HIMSELF AS CENTRIST SAID EVEN THOUGH UKRAINE'S POLITICAL DIRECTION IS STILL UP IN THE AIR THE COMMITMENT TO ECONOMIC REFORM WAS NOT IN QUESTION NO PARTY CAMPAIGNED AGAINST ECONOMIC REFORM NO ONE IN THE COUNTRY WANTS TO GO BACKWARDS HE SAID THE NEW PARLIAMENT WILL TRY TO SPEED UP ECONOMIC REFORM AND NOW WE BELIEVE THAT RUSSIA WILL WORK WITH US UKRAINIAN OFFICIALS HAVE COMPLAINED BITTERLY THAT THEY HAVE BEEN VIRTUALLY IGNORED BY WESTERN FINANCIAL INSTITUTIONS AND THE ANNUAL REPORT OF THE EBRD BEING GIVEN OUT HERE WAS FURTHER EVIDENCE OF THIS UKRAINE HAS DONE LITTLE SO FAR TO PRIVATIZE STATEOWNED PROPERTY OR TO SLOW DOWN ITS RAMPANT INFLATION RATE AND CRITICS ARGUE THAT STRONGER AND EARLIER INVOLVEMENT OF WESTERN INSTITUTIONS IN THE COUNTRY COULD HAVE HELPED STEER THE COUNTRY TOWARDS REFORM UKRAINE WITH A POPULATION OF ALMOST 52 MILLION IS SECOND TO THE BOTTOM OF THE LIST OF COUNTRIES RECEIVING EBRD ASSISTANCE THROUGH LAST YEAR BY THE END OF DECEMBER THE EBRD HAD APPROVED PROJECTS WORTH A TOTAL OF ONLY 83 MILLION EUROPEAN CURRENCY UNITS 94 MILLION THREE TIMES THAT AMOUNT HAD BEEN SPENT IN THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA WHICH HAS A POPULATION OF TWO MILLION BUT MR PYATACHENKO SAID UKRAINE EXPECTED A NEW SERIES OF INFRASTRUCTURE PROJECTS TO RECEIVE EBRD BACKING AND THAT STEPS TOWARDS ECONOMIC REFORM WOULD MAKE PRIVATE INVESTORS MORE INTERESTED IN HIS COUNTRY THOSE WHO INVEST EARLY WILL BE MAKE GREAT PROFITS HE SAID BUT THE TIME IN NOW NOT LATER HE COMPARED UKRAINE'S ACCORD WITH THE RUSSIA AND THE CIS TO AGREEMENTS AMONG MEMBERS OF THE EUROPEAN UNION HE SAID WESTERN EUROPEAN COUNTRIES WERE ALSO TRYING TO COORDINATE THEIR EXCHANGE RATES AN MONETARY POLICIES WE NEED CLOSE CONTACTS TO ALL CIS COUNTRIES AND TO THE REST OF THE WORLD HE SAID BUT SOME RUSSIAN OFFICIALS WERE OPENLY SKEPTICAL HERE ABOUT THE GROWING PROMISES RUSSIA IS MAKING TO ITS NEIGHBORS BORIS FYODOROV ONE OF RUSSIA'S LEADING REFORMERS ESTIMATED THAT ANOTHER AGREEMENT ON MONETARY UNION BETWEEN BELARUS AND RUSSIA WOULD COST EACH RUSSIAN 67 AND WOULD COMPLICATE RUSSIA'S EFFORTS AT FINANCIAL STABILIZATION AND RUSSIA'S DEPUTY FINANCE MINISTER ANDREI KAZMIN WARNED THAT THE AGREEMENT WITH BELARUS WOULD LIKELY FORCE THE COUNTRY INTO A SHOCK ADJUSTMENT DEFICIT SPENDING WOULD HAVE TO BE CUT AND THE COUNTRY WOULD HAVE TO COME DOWN QUICKLY TO RUSSIA'S MUCH LOWER LEVEL OF INFLATION HE SAID BELARUSSIAN BUSINESSMEN HAD EXAGGERATED EXPECTATIONS THAT THE MONETARY UNION AGREEMENT WOULD LEAD TO GREATER HELP FROM RUSSIA THIS ADJUSTMENT COULD BE A REAL SHOCK TO THE BELARUS ECONOMY THEY WILL HAVE TO ACCEPT RULES AND DISCIPLINES ALREADY ACCEPTED IN RUSSIA HE INDICATED THAT ANY ECONOMIC UNION AGREEMENT WITH UKRAINE WITHIN THE CIS WOULD BE LESS AMBITIOUS THAN THAT REACHED WITH BELARUS WE HAVE NOT PLANS TO PURSUE ANYTHING SIMILAR WITH UKRAINE HE SAID 9404180138 940418 TECHNOLOGY & ENVIRONMENT WARNERLAMBERT CO EXPECTS TO REPORT PERSHARE NET ROSE 5 IN FIRST QUARTER BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WARNERLAMBERT CO SAID IT EXPECTS TO REPORT TOMORROW A 5 INCREASE IN FIRSTQUARTER PERSHARE EARNINGS AND AN 11 RISE IN SALES CHAIRMAN MELVIN R GOODES TOLD ANALYSTS FRIDAY THAT THE EXPECTED FIRSTQUARTER EARNINGS OF 142 A SHARE ARE SOMEWHAT AHEAD OF ANALYSTS' CONSENSUS ESTIMATE OF 138 A SHARE IN THE 1993 FIRST QUARTER WARNERLAMBERT EARNED 1821 MILLION OR 135 A SHARE ON SALES OF 133 BILLION FOR THE FULL YEAR MR GOODES SAID THE COMPANY EXPECTS A DOUBLEDIGIT SALES INCREASE AND AN 8 TO 10 RISE IN EARNINGS EXCLUDING A RESTRUCTURING CHARGE AND ACCOUNTING CHANGE LAST YEAR IN 1993 THE CONSUMER PRODUCTS AND PHARMACEUTICAL COMPANY EARNED 331 MILLION OR 245 A SHARE ON SALES OF 579 BILLION THE COMPANY ALSO SAID IT IS CONSIDERING ASKING ITS BOARD FOR PERMISSION TO BUY BACK SOME ADDITIONAL COMMON SHARES IT SAID IT HAS REPURCHASED TWO MILLION SHARES DURING THE PAST EIGHT MONTHS WARNERLAMBERT SHARES SLIPPED 25 CENTS TO 62875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY COMPANY OFFICIALS EMPHASIZED TO ANALYSTS THAT TWOTHIRDS OF ITS BUSINESS COMES FROM THE CONSUMER SECTOR AND PREDICTED THAT ANNUAL SALES IN THAT SECTOR WOULD DOUBLE WITHIN FIVE YEARS FROM THE CURRENT 37 BILLION GEORGE L FOTIADES WARNERLAMBERT VICE PRESIDENT AND PRESIDENT OF WARNER WELLCOME CONSUMER HEALTH PRODUCTS SAID SALES OF THE COMPANY'S JOINT VENTURE WITH WELLCOME PLC ARE EXPECTED TO HIT 16 BILLION THIS YEAR WARNERLAMBERT SAID A FOOD AND DRUG ADMINISTRATION ADVISORY COMMITTEE MEETING NEXT MONTH WILL CONSIDER SWITCHING THE PRESCRIPTION ANTIVIRAL DRUG ZOVIRAX FOR RECURRENT GENITAL HERPES TO THE OVERTHECOUNTER MARKET ZOVIRAX IS A WELLCOME DRUG THAT WILL BE MARKETED THROUGH A JOINT VENTURE BETWEEN WELLCOME AND WARNERLAMBERT IF IT IS APPROVED FOR OVERTHECOUNTER MARKETING WARNERLAMBERT ALSO SAID AN APPLICATION TO SWITCH GLAXO HOLDINGS PLC'S ANTIULCER DRUG ZANTAC TO THE OVERTHECOUNTER MARKET IS EXPECTED TO BE SUBMITTED TO THE FDA BY YEAR END AN OVERTHECOUNTER ZANTAC WOULD BE MARKETED THROUGH THE WARNER/WELLCOME JOINT VENTURE WARNERLAMBERT'S PHARMACEUTICAL SECTOR WAS HIT HARD LAST YEAR BY THE PATENT EXPIRATION OF HEART DRUG LOPID THAT RESULTED IN A 55 MILLION SALES DECLINE LAST YEAR FROM 556 MILLION AND IS EXPECTED TO LEAD TO A FURTHER SALES DROP THIS YEAR OF 150 MILLION TO 200 MILLION ACCORDING TO LODEWIJK DE VINK WARNERLAMBERT PRESIDENT MOREOVER HE SAID THE COMPANY SAW THE NICOTINEPATCH MARKET VIRTUALLY DISAPPEAR PHARMACEUTICAL SALES IN THE US THIS YEAR ARE EXPECTED TO BE FLAT SAID HARRY OBERKFELL PRESIDENT OF WARNER'S PARKEDAVIS NORTH AMERICA UNIT MR OBERKFELL SAID PRESCRIPTIONS FOR THE NEW COGNEX DRUG FOR ALZHEIMER'S DISEASE PATIENTS ROSE TO 50000 IN MARCH FROM 19000 IN OCTOBER OBVIOUSLY WE WOULD HAVE PREFERRED TO SEE A FASTER BUILD IN SALES BUT IT'S CLEAR THAT PHYSICIANS ARE BEING CONSERVATIVE HE SAID ADDING THAT MARKET RESEARCH INDICATES A HIGH INTENT TO USE THE DRUG OVER THE NEXT SEVERAL YEARS THE COMPANY IS COUNTING ON COGNEX ITS NEW EPILEPSY DRUG NEURONTIN AND HEART DRUG ACCUPRIL TO GENERATE ABOUT HALF OF THE DOMESTIC PHARMACEUTICAL GROWTH IN ITS RESEARCH PIPELINE WARNERLAMBERT SAID IT HAS A DIABETES TREATMENT A CHOLESTEROLREDUCING DRUG ANTIBIOTICS A PROSTATE CANCER TREATMENT HORMONE REPLACEMENT THERAPY FOR MENOPAUSE AND OSTEOPOROSIS AND A GASTROINTESTINAL DRUG 9404180137 940418 HITACHI FACES HURDLE MAKING KEY SOFTWARE FOR NEW SH3 CHIP TOKYO HITACHI LTD IS HAVING A TOUGH TIME DEVELOPING OPERATINGSYSTEM SOFTWARE NEEDED TO ENSURE STRONG SALES OF A NEW MICROPROCESSOR IT PLANS TO RELEASE NEXT YEAR THE NEW CHIP CALLED SH3 WILL BE HITACHI'S ENTRY INTO THE NASCENT MARKET FOR PERSONAL COMMUNICATORS HANDHELD COMPUTERS THAT COMBINE FUNCTIONS SUCH AS ELECTRONIC DATE BOOKS FAX MACHINES AND ORGANIZERS NORIO SOBAJIMA AN ASSISTANT GENERAL MANAGER AT HITACHI SAID THE NEW CHIP WILL BE AMONG THE MOST POWERFUL OF ITS KIND ON THE MARKET AND ALSO WILL BE COMPETITIVE IN TERMS OF HOW LITTLE POWER IT CONSUMES YET HITACHI STILL FACES A DIFFICULT TIME DEVELOPING A SOFTWARE OPERATING SYSTEM THAT WILL RUN WITH THE SH3 MR SOBAJIMA SAID OPERATINGSYSTEM SOFTWARE PROVIDES THE FOUNDATION THAT ALLOWS OTHER COMPUTER PROGRAMS TO OPERATE ON A CHIP AND IT IS CRUCIAL TO ENSURING THAT SUCH A PRODUCT IS WIDELY ACCEPTED WHILE HITACHI HAS OPERATING SOFTWARE THAT IS USED IN INDUSTRIALCONTROL APPLICATIONS OF SUCH CHIPS THAT SOFTWARE IS AIMED SPECIFICALLY AT THE JAPANESE MARKET AND WOULD BE DIFFICULT TO ADAPT FOR USE ELSEWHERE MEANWHILE DEVELOPING NEW OPERATING SOFTWARE EITHER ALONE OR WITH A US PARTNER WOULD REQUIRE A GREAT DEAL OF TIME AND MONEY AND THERE IS NO GUARANTEE OF SUCCESS HE SAID ONCE THE COMPANY WORKS OUT ITS SOFTWARE PROBLEM THE CHIP WILL MAKE HITACHI THE FIRST JAPANESE COMPANY IN YEARS TO MARKET A STANDALONE MICROPROCESSOR OTHER MAJOR JAPANESE CHIP MAKERS GENERALLY MANUFACTURE MICROPROCESSORS TO THE DESIGNS OF US COMPANIES SUCH AS SILICON GRAPHICS INC THE MICROPROCESSOR MARKET IS DOMINATED BY US FIRMS INCLUDING INTEL CORP AND MOTOROLA INC WHILE MR SOBAJIMA WOULDN'T REVEAL THE EXACT DATE OF THE NEW CHIP'S DEBUT HE SAID IT WILL BE READY WHILE THE MARKET FOR PERSONALCOMMUNICATOR MICROPROCESSORS IS STILL EVOLVING MEANWHILE SEGA ENTERPRISES IS USING AN EARLIER VERSION OF THE SH3 IN ITS NEXT GENERATION OF GAME MACHINES WHICH IS TO HIT THE MARKET LATER THIS YEAR 9404180136 940418 INTERNATIONAL QUEBEC'S PREMIER OFFERS CLEAR CHOICE FOR CANADIAN UNITY BUT TRAILS IN POLLS BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE WALL STREET JOURNAL MONTREAL DANIEL JOHNSON QUEBEC'S NEW PREMIER HAS GONE TO SOME LENGTHS TO DISPEL HIS REPUTATION AS A BEANCOUNTER HE HAS PLAYFULLY DOUSED A TELEVISION INTERVIEWER WITH WATER AND TALKED ABOUT HOW MUCH HE LIKES JOHN LENNON'S MUSIC BUT MR JOHNSON REALLY RAISED EYEBROWS WHEN HE TOLD REPORTERS LATE LAST YEAR THAT HE CONSIDERS HIMSELF A CANADIAN FIRST AND FOREMOST AS THE PROVINCE HEADS TOWARD A PIVOTAL ELECTION IN THE COMING MONTHS MR JOHNSON AND HIS OPPONENT PARTI QUEBECOIS LEADER JACQUES PARIZEAU ARE OFFERING THE MOST CLEARCUT CHOICE IN MANY YEARS ON THE NAGGING QUESTION OF QUEBEC'S RELATIONSHIP TO THE REST OF CANADA MR JOHNSON'S PREDECESSOR ROBERT BOURASSA WOOED QUEBEC NATIONALISTS WITH MUSINGS ABOUT GREATER AUTONOMY FOR THE MAINLY FRENCHSPEAKING PROVINCE AND THE SLOGAN OF MR JOHNSON'S FATHER AND NAMESAKE A PREMIER DURING THE 1960S WAS EQUALITY OR INDEPENDENCE A CATCH PHRASE THAT INVOKED DEMANDS FOR POLITICAL EQUALITY BETWEEN CANADA'S ENGLISH AND FRENCH FOUNDING PEOPLES MUCH HAS CHANGED HERE SINCE THE 1960S BUT THE FUTURE OF QUEBEC'S DISTINCT SOCIETY IN CANADA HAS REMAINED UNSETTLED NOW THE PARTI QUEBECOIS IS PUSHING OPENLY FOR INDEPENDENCE AFTER SOFTPEDALING ITS SEPARATIST AGENDA IN PREVIOUS ELECTIONS MR PARIZEAU PLEDGES TO STAGE A REFERENDUM WITHIN A YEAR OF WINNING POWER TO ASK VOTERS WHETHER THEY WANT QUEBEC TO BECOME A SOVEREIGN COUNTRY MR JOHNSON SAYS QUEBEC'S INTERESTS ARE BEST SERVED WITHIN THE FEDERAL SYSTEM AND MAKES CLEAR THAT SOVEREIGNTY BACKERS DON'T BELONG IN HIS QUEBEC LIBERAL PARTY THE 49YEAROLD PREMIER MUST HOLD A GENERAL ELECTION BY THIS FALL AFTER NINE YEARS IN POWER THE LIBERALS TRAIL THE PARTI QUEBECOIS IN OPINION POLLS AND ANALYSTS SAY MR JOHNSON FACES AN UPHILL FIGHT THIS DOESN'T MEAN MOST QUEBEC VOTERS ARE PREPARED TO PULL OUT OF CANADA HOWEVER MANY POLITICAL OBSERVERS EXPECT THE PARTI QUEBECOIS TO WIN POWER AS IT DID IN 1976 BUT LOSE THE SOVEREIGNTY PLEBISCITE AS IT DID IN 1980 VOTERS MAY OPT FOR A CHANGE IN GOVERNMENT FIGURING THEY CAN SAY NO TO SEPARATION LATER THE FUTURE OF QUEBEC IN CANADA HAS NEVER BEEN THE KEY ISSUE OF AN ELECTION IN THE PROVINCE SAYS STEPHANE DION A POLITICAL SCIENCE PROFESSOR AT THE UNIVERSITY OF MONTREAL EVEN SO JITTERS OVER QUEBEC HAVE CREPT INTO CANADIAN FINANCIAL MARKETS LATELY AND MARKET OBSERVERS SAY VOLATILITY COULD INTENSIFY AS THE ELECTION APPROACHES MR JOHNSON WILL SEEK TO REASSURE US INVESTORS DURING A TRIP TO NEW YORK AND WASHINGTON TODAY AND TOMORROW MR PARIZEAU LIKENS THE PROVINCIAL ELECTION TO THE SECOND PERIOD OF A HOCKEY GAME IN THE OPENING PERIOD SEPARATISTS WON MOST OF QUEBEC'S SEATS IN NATIONAL PARLIAMENTARY ELECTIONS AND A PARTI QUEBECOIS VICTORY IN THE PROVINCIAL CONTEST WOULD SET UP THE CRUCIAL THIRD PERIOD THE REFERENDUM SUPPORTERS OF A UNITED CANADA HOPE MR JOHNSON CAN OUTSKATE THE 63YEAROLD MR PARIZEAU AND WIN FOR THE LIBERALS A THIRD STRAIGHT TERM THAT WOULD NULLIFY MR PARIZEAU'S GAME PLAN MR JOHNSON MADE SOME HEADWAY AFTER TAKING OFFICE THREE MONTHS AGO IN CONTRAST TO THE EVERVACILLATING MR BOURASSA WHO RETIRED IN JANUARY FOR HEALTH REASONS MR JOHNSON MOVED DECISIVELY ON SEVERAL ISSUES FOR EXAMPLE HE QUICKLY PERSUADED OTTAWA TO SNUFF OUT A LONGSMOLDERING PROBLEM WITH CONTRABAND CIGARETTES BY SLASHING TOBACCO TAXES HIS MOMENTUM HAS WANED LATELY HOWEVER LAST WEEK HE SQUABBLED WITH THE FEDERAL GOVERNMENT OVER A LONGSTANDING QUEBEC DEMAND FOR CONTROL OVER MANPOWERTRAINING PROGRAMS MEANWHILE HE IS HOLDING OUT THE HOPE TO VOTERS OF RELIEF FROM THEIR ECONOMIC PAIN MOVING TO RELAX THE GOVERNMENT'S DEFICITCUTTING PROGRAM AND VOWING TO SLASH THE PROVINCE'S UNEMPLOYMENT RATE TO AROUND 8 OF THE WORK FORCE IN A FEW YEARS FROM 117 LAST MONTH A FACTOR IN MR JOHNSON'S FAVOR WHILE THE PARTI QUEBECOIS LEADS IN OPINION SURVEYS MR PARIZEAU'S PERSONAL POPULARITY IS TRAILING SOME LONGTIME PARTIQUEBECOIS VOTERS COMPLAIN THAT MR PARIZEAU'S HIGHFLOWN MANNER IS MORE SUITED TO HIS FORMER ROLE AS FINANCE MINISTER MR PARIZEAU CONCEDES HE NEVER WILL HAVE THE POPULIST TOUCH OF THE LATE RENE LEVESQUE WHO LED THE PARTY TO POWER IN THE 1970S MR JOHNSON DOESN'T EXACTLY CUT A BLUECOLLAR FIGURE EITHER HE HAS A LAW DEGREE FROM THE UNIVERSITY OF MONTREAL AND GRADUATE DEGREES FROM THE UNIVERSITY OF LONDON AND HARVARD BUSINESS SCHOOL BEFORE ENTERING POLITICS HE WORKED FOR POWER CORP OF CANADA A HOLDING COMPANY KNOWN FOR SAVVY INVESTMENT TIMING AND EXTENSIVE POLITICAL CONNECTIONS HIS FAMILY CONNECTIONS ARE ALSO BROAD HIS BROTHER PIERREMARC WAS HEAD OF THE PARTI QUEBECOIS IN THE MID1980S AND SERVED AS PREMIER BRIEFLY IN 1985 WHEN THE PARTY HAD SHELVED ITS SOVEREIGNTY PLANS 9404180135 940418 POLITICS & POLICY WHITE HOUSE PROPOSAL ALLOWS SEARCHES WITHOUT WARRANTS IN PUBLIC HOUSING BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IN A BID TO HELP CONTROL VIOLENCE IN PUBLIC HOUSING PROPOSED LETTING POLICE WITHOUT WARRANTS RAID MORE APARTMENTS AND DO MORE SEARCHES IN THOSE COMPLEXES IN ADDITION THE WHITE HOUSE PLAN WOULD URGE LOCAL PUBLICHOUSING AUTHORITIES TO ASK TENANTS SIGNING LEASES TO ALLOW A CLAUSE IN THOSE LEASES AUTHORIZING SEARCHES OF THEIR APARTMENTS THE PLAN UNVEILED BY PRESIDENT CLINTON IN HIS SATURDAY RADIO ADDRESS COMES LESS THAN TWO WEEKS AFTER A FEDERAL JUDGE IN CHICAGO BLOCKED EFFORTS BY THAT CITY'S HOUSING AUTHORITY TO CONDUCT SIMILAR SEARCHES WITHOUT WARRANTS BUT THE WHITE HOUSE SAID THAT ITS NEW PLAN WILL ADEQUATELY PROTECT INDIVIDUALS' CONSTITUTIONAL RIGHTS THERE ARE MANY RIGHTS THAT OUR LAWS AND OUR CONSTITUTION GUARANTEE TO EVERY CITIZEN BUT VICTIMS HAVE CERTAIN RIGHTS THAT WE ARE LETTING SLIP AWAY MR CLINTON SAID THEY INCLUDE THE RIGHT TO GO OUT TO THE PLAYGROUND AND THE RIGHT TO SIT BY AN OPEN WINDOW THE RIGHT TO WALK TO THE CORNER WITHOUT FEAR OF GUNFIRE THE RIGHT TO GO TO SCHOOL SAFELY IN THE MORNING AND THE RIGHT TO CELEBRATE YOUR 10TH BIRTHDAY WITHOUT COMING HOME TO BLOODSHED AND TERROR UNDER THE PROPOSAL LOCAL POLICE WOULD BE ENCOURAGED TO USE MORE BROADLY THEIR CURRENT POWER TO ENTER AND SEARCH PUBLICHOUSING APARTMENTS IF EXIGENT OR EMERGENCY SITUATIONS EXIST SUSPICION OF ILLEGAL GUNS OR NARCOTICS WOULD CONSTITUTE SUCH AN EMERGENCY THE LEASE AGREEMENTS WOULD BE SIMILAR TO THOSE NOW USED IN EMERGENCY CIRCUMSTANCES AS WELL CURRENTLY MAINTENANCE AND EMERGENCYSERVICE WORKERS CAN HAVE ACCESS TO APARTMENTS WITHOUT WARRANTS ACTING ASSOCIATE ATTORNEY GENERAL BILL BRYSON SAID I THINK THAT THERE CERTAINLY ARE CIRCUMSTANCES IN WHICH IT IS LEGITIMATE TO HAVE IN THE LEASE A PROVISION WHICH WOULD ALLOW FOR ADMINISTRATIVE INSPECTION FOR FIREARMS ANY SPECIFIC PLANS WOULD HAVE TO BE PROPOSED BY LOCAL HOUSING OFFICIALS BY PUTTING FORWARD THIS PROPOSAL THE ADMINISTRATION IS TRYING TO BOLSTER HOUSING AUTHORITIES WHILE AT THE SAME TIME WALKING THE FINE LINE OF NOT VIOLATING INDIVIDUAL CIVIL LIBERTIES CIVIL RIGHTS GROUPS LED BY THE AMERICAN CIVIL LIBERTIES UNION SUCCESSFULLY FOUGHT THE CHICAGO HOUSING AUTHORITY PROPOSAL SAYING THAT IT VIOLATED FOURTH AMENDMENT RIGHTS IT'S PROBABLE THEY WOULD TAKE A SIMILAR LINE AGAINST THE CLINTON PROPOSAL YESTERDAY IN AN INTERVIEW ON NBC'S MEET THE PRESS SEN JOSEPH BIDEN D DEL SAID HE IS SKEPTICAL BUT OPENMINDED ABOUT THE PLAN HE ADDED I THINK WE OUGHT TO HAVE A CONSTITUTIONAL TEST OF IT 9404180134 940418 WHO'S NEWS CYTOGEN CORP CYTOGEN CORP PRINCETON NJ RICHARD MURAWSKI 45 YEARS OLD WAS NAMED VICE PRESIDENT OPERATIONS AT THIS BIOPHARMACEUTICAL CONCERN SUCCEEDING MICHAEL PAULIK 55 WHO RESIGNED TO PURSUE OTHER BUSINESS OPPORTUNITIES AND WHO WILL REMAIN A CONSULTANT THROUGH JUNE MR MURAWSKI WILL BE RESPONSIBLE FOR ALL CYTOGEN'S OPERATIONAL FUNCTIONS INCLUDING MANUFACTURING AND TECHNICAL OPERATIONS AND ANALYTICAL SERVICES MR MURAWSKI WAS MOST RECENTLY VICE PRESIDENT OPERATIONS AT IMMUNOMEDICS INC A BIOPHARMACEUTICAL COMPANY HE ALSO WORKED 19 YEARS AT PHARMACEUTICAL COMPANY SCHERINGPLOUGH CORP 9404180133 940418 GENERAL COMPUTER RESTATES SOME RESULTS TO POST NET LOSSES SHARES PLUNGE 35 BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL GENERAL COMPUTER CORP RESTATED ITS RESULTS FOR THE FIRST TWO QUARTERS OF FISCAL 1994 POSTING LOSSES INSTEAD OF PROFITS TO REFLECT INCORRECT ACCOUNTING IN ITS MANAGEDCARE DRUGFORMULARY PROGRAM THE COMPANY BASED IN TWINSBURG OHIO SAID IT HAD A RESTATED NET LOSS OF 682000 OR 35 CENTS A SHARE IN THE FISCAL FIRST QUARTER ENDED AUG 31 ON RESTATED SALES OF 37 MILLION PREVIOUSLY THE COMPANY REPORTED NET INCOME OF 147306 EIGHT CENTS A SHARE FOR THE PERIOD ON SALES OF 48 MILLION FOR THE FISCAL SECOND QUARTER ENDED NOV 30 GENERAL COMPUTER SAID IT HAD A RESTATED NET LOSS OF 672000 OR 35 CENTS A SHARE ON RESTATED SALES OF 39 MILLION PREVIOUSLY IT HAD REPORTED NET INCOME FOR THE PERIOD OF 202489 OR 10 CENTS A SHARE ON SALES OF 45 MILLION IN TRADING ON THE NASDAQ STOCK MARKET FRIDAY GENERAL COMPUTER STOCK CLOSED AT 650 OFF 350 OR 35 THE STOCK'S 52WEEK HIGH IS 2275 ITS 52WEEK LOW IS 575 A SHARE FOR THE FISCAL THIRD QUARTER ENDED FEB 28 GENERAL COMPUTER REPORTED A NET LOSS OF 526000 OR 27 CENTS A SHARE ON SALES OF 41 MILLION GENERAL COMPUTER PROVIDES ELECTRONIC SYSTEMS AND SERVICES FOR PHARMACIES PHYSICIANS AND THE HEALTHCARE INDUSTRY THE COMPANY SAID THE RESTATEMENT WAS NEEDED BECAUSE SOME REVENUE HAD BEEN ACCRUED FOR ITS MANAGEDCARE DRUGFORMULARY CONTRACTS THAT HADN'T BEEN COMPLETED IT SAID IT EXPECTS TO RECOGNIZE THE REVENUE THROUGH FISCAL 1994 ENDING MAY 31 AS CONTRACTS ARE COMPLETED THROUGH ITS FORMULARY PROGRAM THE COMPANY SAID IT ACTS AS A THIRD PARTY TO ALLOW HEALTHCARE PROVIDERS TO SUPPLY DRUGUSE TREND INFORMATION TO DRUG MANUFACTURERS WHO PAY A FEE TO GENERAL COMPUTER THE COMPANY HAS SAID IT IS SUPPOSED TO RETURN A PORTION OF THAT FEE TO THE HEALTH PROVIDERS BUT THE COMPANY HAS SAID THAT THE PROGRAM WAS INADEQUATELY PRESENTED TO SOME PROVIDERS AND WASN'T PRESENTED AT ALL TO OTHERS EARLIER THIS MONTH THE COMPANY WROTE A LETTER TO PROVIDERS SAYING IT DIDN'T INTEND TO SHARE FEES WITH THEM UNTIL AFTER IT HAD RECOVERED SUBSTANTIAL DEVELOPMENT COSTS THE COMPANY SAID IT WAS DETERMINING ITS DEVELOPMENT COSTS AND WOULD SHARE WITH CUSTOMERS A PORTION OF THE FEES FOLLOWING FRIDAY'S RESTATEMENT A SPOKESMAN SAID THE REVENUE FROM DRUG MANUFACTURERS CAN'T BE RECOGNIZED UNTIL THE COMPANY DETERMINES HOW MUCH BELONGS TO THE COMPANY AND HOW MUCH BELONGS TO THE HEALTHCARE PROVIDERS GENERAL COMPUTER WAS SUED IN CUYAHOGA COUNTY COURT OF COMMON PLEAS IN OHIO IN FEBRUARY BY JAMES J MINDALA A FORMER EXECUTIVE WHO ALLEGES GENERAL COMPUTER IMPROPERLY CALCULATED ITS INCOME AND OVERSTATED THE AMOUNT OF ITS REVENUES THE COMPANY HAS FILED A COUNTERSUIT DENYING MR MINDALA'S ALLEGATIONS AND CONTENDING THAT THE FORMER EXECUTIVE FAILED TO REIMBURSE THE COMPANY FOR ABOUT 4000 IN CREDITCARD BILLS AND 15000 IN LOANS AND FALSIFIED EXPENSE ACCOUNTS AND SOLICITED GENERAL COMPUTER'S CUSTOMERS FOR HIS OWN BENEFIT MR MINDALA HAS DENIED ANY WRONGDOING FOR THE YEAR ENDED MAY 31 1993 GENERAL COMPUTER POSTED NET OF 800000 OR 43 CENTS A SHARE ON SALES OF 15 MILLION 9404180132 940418 MARKETING & MEDIA ALL THREE NETWORKS HOLD THEIR GROUND AS THE 199394 TELEVISION SEASON ENDS BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN FINAL FIGURES FOR THE 199394 TELEVISION SEASON ARE RELEASED THIS WEEK THE THREE MAJOR BROADCAST NETWORKS WILL ALL HAVE AT LEAST ONE THING TO CHEER ABOUT BY CBS'S CALCULATIONS FOR THE FIRST TIME EVER NO NETWORK WILL HAVE DROPPED IN RATINGS FROM THE PREVIOUS SEASON THE TRADITIONAL 30WEEK SEASON WHICH BEGAN SEPT 20 AND ENDED LAST NIGHT HAS BEEN GOOD OVERALL FOR NETWORK TELEVISION BECAUSE THE THREE NETWORKS MAINTAINED THEIR TOTAL AUDIENCE FROM A YEAR EARLIER AS WELL AS THEIR SHARE OF ALL TELEVISION VIEWING AND UNLIKE LAST SEASON WHERE FEW HITS EMERGED THIS SEASON HAS SEEN THE LAUNCH OF SEVERAL HIT PROGRAMS SPREAD ACROSS ALL THE NETWORKS CBS INC WILL HAVE THE MOST TO CELEBRATE FROM THE END OF THE SEASON HAVING CINCHED AN EASY FIRSTPLACE FINISH BACK IN FEBRUARY WHEN ITS COVERAGE OF THE WINTER OLYMPICS FROM LILLEHAMMER NORWAY DREW RECORD AUDIENCES BUT ABC A UNIT OF CAPITAL CITIES/ABC INC IS PLEASED WITH ITS PERFORMANCE AS WELL THE NETWORK HAS THE MOST NEW HIT SHOWS THIS SEASON ITS HOME IMPROVEMENT WILL FINISH AS THE TOPRANKED SHOW IT WINS IN THE ADVERTISERFRIENDLY DEMOGRAPHICS OF THE 18TO49 AGE GROUP ALTHOUGH IT DROPPED SLIGHTLY FROM A YEAR EARLIER AND IT HAS WON 13 OF THE 30 WEEKS ITS BEST PERFORMANCE BY THAT MEASURE SINCE THE 197879 SEASON WITH OR WITHOUT THE OLYMPICS CBS IS THE CLEAR WINNER FOR THE THIRD CONSECUTIVE SEASON WITH ABC SECOND AND GENERAL ELECTRIC CO'S NBC UNIT A DISTANT THIRD NEWS CORP'S FOX NETWORK WHICH AIRS 15 HOURS OF PRIMETIME SHOWS WEEKLY TO THE OTHER NETWORKS' 22 HOURS IS FOURTH WHEN REGULARLY SCHEDULED PROGRAMS ALONE ARE MEASURED CBS IS EXPECTED TO WIN BY A SLIGHT MARGIN AND BY THAT MEASURE CBS WILL FINISH ON A PAR WITH LAST YEAR WITH ABC AND NBC UP MARGINALLY ABC MEASURED IT A DIFFERENT WAY MERELY SUBTRACTING THE TWO WEEKS OF OLYMPICS COVERAGE AND CBS STILL WINS ALTHOUGH BY SUCH A NARROW MARGIN THAT ABC SAYS THE TWO ARE AT PARITY UNLIKE LAST YEAR WHERE CBS'S DR QUINN MEDICINE WOMAN WAS THE ONLY HIT AMONG THE THREE NETWORKS EACH NETWORK CAN POINT TO AT LEAST ONE GENUINE BREATHROUGH HIT THIS SEASON IN WHICH A RECORD NUMBER OF NEW FALL SHOWS WERE LAUNCHED ABC'S TOP NEW SHOWS ARE GRACE UNDER FIRE AND NYPD BLUE NBC HAS FRASIER AND CBS HAS DAVE'S WORLD ABC HAS ALSO HAD PARTICULAR SUCCESS WITH MIDSEASON REPLACEMENT SHOWS SUCH AS THESE FRIENDS OF MINE AND TURNING POINT FOX MEANWHILE HAS A SUCCESS WITH MELROSE PLACE AMONG YOUNG ADULTS HEADING INTO NEXT YEAR ABC IS EXPECTED TO MAKE A HISTORICALLY LOW NUMBER OF CHANGES TO ITS SCHEDULE SAYS ABC ENTERTAINMENT PRESIDENT TED HARBERT IN THIS TIME OF CHANNEL SURFING AND SO MANY VIEWER CHOICES WE ARE A BIG BELIEVER IN STABILITY 9404180131 940418 LAW FUGITIVE EXECUTIVE WHO HID IN GEORGIA IS INDICTED BY US BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL MALCOLM CHEEK THE FUGITIVE ST LOUIS EXECUTIVE WHO HID OUT IN THE NORTHERN GEORGIA HILLS FOR THREE YEARS WAS CHARGED WITH VARIOUS CRIMES LATE LAST WEEK INCLUDING MANIPULATING THE SHARE PRICE OF HIS ONETIME COMPANY NOWDEFUNCT Y&A GROUP INC MR CHEEK 44 YEARS OLD WAS CHIEF EXECUTIVE OFFICER OF Y&A A CREVE COEUR MO ENGINEERING CONCERN UNTIL HE SUDDENLY DISAPPEARED ON MARCH 4 1991 WHILE ON A NEW YORK BUSINESS TRIP HE THEN SURFACED UNDER AN ASSUMED NAME IN EAST ELLIJAY GA AND LIVED THERE UNTIL A FEW WEEKS AGO WHEN FEDERAL BUREAU OF INVESTIGATION AGENTS ARRESTED HIM IN GEORGETOWN SC IN AN INDICTMENT LATE THURSDAY A FEDERAL GRAND JURY IN ST LOUIS DISCLOSED FURTHER DETAILS OF MR CHEEK'S ALLEGED CRIMES IN MISSOURI ALSO INDICTED WAS HIS WIFE STEPHANIE CHEEK FOR ALLEGEDLY CONSPIRING TO CONCEAL PROPERTY FROM A BANKRUPTCY COURT AND LYING TO THE FBI MR CHEEK WHO USED THE NAME PAUL FENWICK DURING HIS TIME IN GEORGIA WAS CHARGED WITH PROVIDING FALSE INFORMATION TO SHAREHOLDERS OF Y&A WHICH ONCE HIT A HIGH MARK OF 42 A SHARE IN OVERTHECOUNTER TRADING BUT ENDED UP WORTHLESS Y&A WENT OUT OF BUSINESS AFTER MR CHEEK'S DISAPPEARANCE THE INDICTMENT CHARGED HIM WITH CREATING FALSE RECEIVABLES ON THE COMPANY RECORDS THESE IN TURN RESULTED IN FALSE FINANCIAL RECORDS BEING PREPARED INCLUDING QUARTERLY REPORTS SUBMITTED TO THE SECURITIES AND EXCHANGE COMMISSION THAT OVERSTATED Y&A'S REVENUE AND NET INCOME THE GRAND JURY CHARGED HE ALSO ALLEGEDLY SUBMITTED FALSE FINANCIAL STATEMENTS ON BEHALF OF Y&A IN 1989 THE INDICTMENT SAID THE BANKRUPTCY CHARGES RELATE TO THOUSANDS OF DOLLARS IN ANTIQUE FURNITURE AND OTHER GOODS ALLEGEDLY FRAUDULENTLY TAKEN BY MR AND MRS CHEEK TO THE DETRIMENT OF BANKRUPTCY CREDITORS MR CHEEK ALSO DEFRAUDED BROKERAGE FIRM COWEN & CO BY OPENING A MARGIN ACCOUNT AND GETTING 230000 WIRETRANSFERRED TO HIS AND HIS WIFE'S CHECKING ACCOUNT SHORTLY BEFORE HE VANISHED ACCORDING TO THE INDICTMENT HE HAD DEPOSITED 50000 Y&A SHARES INTO THE COWEN MARGIN ACCOUNT AS COLLATERAL STOCK THAT COWEN BELIEVED HAD A VALUE OF 650000 THE INDICTMENT ALLEGES THE FBI STILL IS INVESTIGATING MR CHEEK'S ACTIVITIES IN GEORGIA WHERE ONETIME BUSINESS PARTNERS AND OTHERS CLAIM HE ABSCONDED WITH THOUSANDS OF DOLLARS IN PERSONAL LOANS AND ASSETS OF TWO LOGHOME CONSTRUCTION COMPANIES THERE HAVEN'T BEEN ANY CHARGES IN CONNECTION WITH THE GEORGIA ACTIVITIES MR AND MRS CHEEK WHO ARE IN FEDERAL CUSTODY COULDN'T BE REACHED FOR COMMENT THEY ARE EXPECTED TO BE ARRAIGNED THIS WEEK 9404180130 940418 INTERNATIONAL BRAZIL AGREES TO RESTRUCTURE FOREIGN LOANS DEAL ON 52 BILLION IN DEBT LACKS SUPPORT OF IMF DARTS AREN'T INCLUDED A WALL STREET JOURNAL NEWS ROUNDUP AFTER OVERCOMING SOME SIGNIFICANT OBSTACLES BRAZIL CLOSED A CHAPTER IN THE HISTORY OF DEVELOPINGNATION DEBT CRISES LATE FRIDAY BY COMPLETING A DEAL TO RESTRUCTURE 52 BILLION OF ITS FOREIGN LOANS BUT THE DRAMA OVER BRAZIL'S FOREIGN DEBT MAY NOT BE OVER THE DEAL HASN'T YET RECEIVED IMPORTANT BACKING FROM THE INTERNATIONAL MONETARY FUND WHAT'S MORE THE DART FAMILY ONE OF THE US'S BIGGEST MAKERS OF FOAM CUPS AND OWNERS OF MORE THAN 1 BILLION IN BRAZILIAN DEBT PAPER DID NOT JOIN THE DEAL ACCORDING TO BANKERS WHO WERE INVOLVED REPRESENTATIVES FOR THE FAMILY WOULDN'T COMMENT ON THE SITUATION LAST WEEK THE ACCORD WAS REACHED IN NEW YORK LATE FRIDAY WITH SOME 750 BANKS IT IS SUPPOSED TO BE ONE OF THE LAST CHAPTERS IN THE CLEANUP OF THE DEVELOPINGNATION DEBT MESS OF THE EARLY 1980S THE CRISIS LED TO A DECADE OF ECONOMIC STAGNATION IN LATIN AMERICA AND BIG LOSSES BY BANKS IN THE US AND OTHER DEVELOPED COUNTRIES WILLIAM R RHODES VICE CHAIRMAN OF CITICORP'S CITIBANK UNIT AND A KEY NEGOTIATOR IN THE PROCESS THAT LED TO THE AGREEMENT CALLED IT A HISTORIC DAY FOR BRAZIL IN ALLOWING IT TO NORMALIZE RELATIONS WITH ITS EXTERNAL CREDITORS AND GIVING FURTHER MOMENTUM TO ITS PROGRAM OF ECONOMIC OPENING AND REFORM UNDER GUIDELINES SET UP BY FORMER US TREASURY SECRETARY NICHOLAS BRADY MUCH OF BRAZIL'S FOREIGN COMMERCIAL DEBT WILL BE CONVERTED INTO SPECIAL LONGTERM BONDS MANY OF WHICH ARE COLLATERALIZED BY 30YEAR ZEROCOUPON US TREASURY BONDS THE BRADY PROGRAM HAS BEEN USED BY A NUMBER OF OTHER DEVELOPING NATIONS TO REDUCE FOREIGN DEBT BURDENS AND PROVIDE A PATH BACK TO THE INTERNATIONAL DEBT MARKETS AFTER YEARS AS INTERNATIONAL PARIAHS THE SOCALLED BRADY BONDS ARE PARTLY RESPONSIBLE FOR THE ECONOMIC RESURGENCE OF MEXICO AND ARGENTINA BRAZIL OWES FOREIGN CREDITORS ABOUT 120 BILLION THE HIGHEST FOREIGN DEBT IN THE DEVELOPING WORLD NEGOTIATORS HAD TO OVERCOME A LASTMINUTE SNAG IN THE DEBT DEAL WHEN THE INTERNATIONAL MONETARY FUND SAID BRAZIL WAS UNLIKELY TO GET A STANDBY LOAN UNTIL IT IMPLEMENTED A PROPOSED NEW ANTIINFLATION PROGRAM WHICH WOULD GO INTO PLACE BY JUNE AT THE EARLIEST THAT LOAN WAS NEEDED TO HELP FINANCE THE PURCHASE OF THE US TREASURYS NEEDED TO COLLATERALIZE THE BRADY BONDS THE SITUATION FORCED BRAZIL AND ITS BANK ADVISORY COMMITTEE TO ASK HUNDREDS OF CREDITORS TO WAIVE A CLAUSE IN THEIR CONTRACTS THAT MADE THE DEAL CONDITIONAL ON THE IMF LOAN CREDITORS HOLDING MORE THAN TWOTHIRDS OF THE DEBT INCLUDED IN THE DEAL QUICKLY AGREED TO THE UNUSUAL WAIVER IN LATE MARCH FORGING AHEAD WITH THE RESTRUCTURING WITHOUT THE IMF SUPPORT COULD MAKE THE DEAL MORE RISKY AND EXPENSIVE FOR BRAZIL TO COMPLETE BECAUSE BRAZIL NOW HAS TO BUY THE TREASURYS NEEDED AS COLLATERAL IN THE OPEN MARKET INSTEAD OF DIRECTLY FROM THE US TREASURY THE US TREASURY HAD SAID IT WOULD SELL THE BONDS DIRECTLY TO BRAZIL IN A SPECIAL SALE ONLY WITH THE IMF STANDBY AGREEMENT IN PLACE OTHER INVESTORS IN BRAZILIAN DEBT SEEMED UNWORRIED ABOUT THE APPARENT RELUCTANCE OF THE DART FAMILY TO JOIN THE DEAL LAST FALL COMMERCIAL BANKERS AND BRAZILIAN DEBT OFFICIALS TRIED HARD TO PERSUADE THE DARTS TO JOIN THE DEAL AS NEGOTIATED BUT THE FAMILY BALKED BECAUSE IT DID NOT LIKE CERTAIN CONDITIONS WHICH REQUIRED THAT ALL DEBTORS ACCEPT A MINIMUM DISCOUNT IN THE VALUE OF THE DEBT PAPER IT IS WIDELY BELIEVED THAT THE FAMILY WILL TAKE LEGAL ACTION AS A RESULT THOUGH A FAMILY REPRESENTATIVE WOULDN'T COMMENT ON WHAT WOULD HAPPEN NEXT BANKS HAVE BEEN EAGER TO FINALIZE THE PACT WITH BRAZIL PRIOR TO THE OCT 3 PRESIDENTIAL ELECTIONS THERE HAS BEEN SOME FEAR THAT THE LEADING CANDIDATE LUIS INACIO LULA DA SILVA OF THE WORKERS PARTY WOULD SEEK TO RENEGOTIATE IT FORMER FINANCE MINISTER FERNANDO HENRIQUE CARDOSO WHO LOBBIED HARD FOR THE NEW ACCORD RESIGNED LAST MONTH TO RUN FOR PRESIDENT HE'S RUNNING SECOND IN THE LATEST POLLS 9404180128 940418 INTERNATIONAL MEXICO KILLING MAY BE WORK OF 2 ASSASSINS POLICE REPORT CITES SEARCH FOR A SECOND WEAPON WOUNDS RAISE SUSPICION BY DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL TIJUANA MEXICO AS THE GOVERNMENT INVESTIGATION DRAGS ON IN THE ASSASSINATION OF RULINGPARTY PRESIDENTIAL CANDIDATE LUIS DONALDO COLOSIO ONE TROUBLING POSSIBILITY KEEPS SURFACING THERE MAY HAVE BEEN TWO GUNMEN A NEW REPORT FROM THE TIJUANA CITY POLICE SHOWS THAT AUTHORITIES MAY HAVE THOUGHT AT LEAST AT THE TIME OF THE MARCH 23 KILLING THAT TWO GUNS WERE USED THE REPORT SAYS AUTHORITIES WENT LOOKING FOR A WEAPON AT THE ASSASSINATION SITE THAT FIRST EVENING AT ALMOST THE SAME TIME THAT ACROSS TOWN THE CONFESSED KILLER WAS IDENTIFYING A GUN AS THE ONE HE USED THE POLICE REPORT FURTHER SAYS THE PRESIDENTIAL GUARD MADE A REPORT LATER TWO HOURS AFTER THE START OF THE INTERROGATION OF THE CONFESSED ASSASSIN MARIO ABURTO MARTINEZ THE GUARD'S REPORT SAID A GUN HAD BEEN FOUND IN THE HILLSIDE SLUM WHERE MR COLOSIO WAS KILLED AND THAT THE GUARD PLANNED TO TURN IT OVER TO THE FEDERAL ATTORNEY GENERAL'S OFFICE ON THE ASSUMPTION THAT IT WAS USED IN THE ASSASSINATION FEDERAL GOVERNMENT OFFICIALS WEREN'T AVAILABLE TO DISCUSS THE REPORTS ALSO TROUBLING IS THE PATH OF THE BULLETS THE FIRST BULLET WHICH ENTERED MR COLOSIO'S HEAD CAME FROM HIS RIGHT SIDE YET THE ONE THAT HIT HIM IN THE ABDOMEN CAME FROM HIS LEFT SIDE FOR BOTH BULLETS TO HAVE COME FROM THE SAME GUN MR COLOSIO WOULD HAVE HAD TO DO AN AWKWARD TURN EXPOSING HIS LEFT SIDE TO THE GUNMAN WHILE FALLING AFTER THE FIRST SHOT THAT MAY HAVE BEEN HOW THINGS HAPPENED BUT POLICE SOURCES AND PHYSICIANS SAID THEY CAN'T RULE OUT THE POSSIBILITY OF A SECOND GUNMAN AND THE GOVERNMENT HAS DONE LITTLE TO DISSUADE THOSE HOLDING SUCH A THEORY THE GOVERNMENT HAS YET TO PRODUCE A BALLISTICS REPORT ABOUT THE TWO BULLETS THE AUTOPSY REPORT OBTAINED BY THE WALL STREET JOURNAL DOESN'T LIST THE CALIBERS OF THE TWO BULLETS THAT STRUCK THE 44YEAROLD MR COLOSIO SERGIO MASCARENO ONE OF THE SURGEONS WHO OPERATED ON MR COLOSIO SAID IT'S VERY DIFFICULT TO SAY IF IT WAS TWO GUNS I DON'T KNOW HONESTLY I CAN'T SAY TIJUANA POLICE CHIEF FEDERICO BENITEZ HASN'T RULED OUT THE TWOGUNMAN THEORY EITHER BUT SAID THE WOUNDS ARE IN SUCH VASTLY DIFFERENT PLACES THAT IT WOULD TAKE AN EXPERT TO MAKE THE CALL A VIDEOTAPE FILMED BY THE FEDERAL ATTORNEY GENERAL'S OFFICE DURING THE CRIME ENDS WITH THE FIRING OF A GUN FROM AN ARM EXTENDED TOWARD MR COLOSIO'S BRAIN THE ASSASSIN'S HEAD CAN'T BE SEEN IN THE VIDEO WHICH HAS BEEN SHOWN TO MILLIONS OF MEXICANS OVER THE PAST THREE WEEKS BY THE TELEVISION MEDIA HERE AND VIEWERS NEVER SEE THE SECOND SHOT FIRED IN ADDITION THE PRESIDENTIAL GUARD CONFISCATED THE MEDICAL PHOTOS THAT DOCTORS MADE DURING THEIR FORENSIC PROCEDURES THE PRESIDENTIAL GUARD SAID THEY TOOK THE PHOTOS AWAY FOR NATIONAL SECURITY REASONS ONE PHYSICIAN SAID ONE SET OF PHOTOS NOW IN GOVERNMENT HANDS DOES EXIST THOUGH RUMORS PERSIST ABOUT A GOVERNMENT INTELLIGENCE AGENT NAMED JORGE ANTONIO SANCHEZ ORTEGA WHO WAS SUSPENDED FROM HIS POST IN TIJUANA TWO WEEKS AGO MR SANCHEZ WAS DETAINED SHORTLY AFTER THE ASSASSINATION BECAUSE HE HAD BLOODSTAINS ON HIS CLOTHES AND HE TESTED PARTLY POSITIVE IN A PARAFFIN TEST USED TO SEE IF A SUSPECT HAS FIRED A GUN HE WAS RELEASED BUT HAS AGAIN COME UNDER SUSPICION 9404180127 940418 WHO'S NEWS BRISTOLMYERS SQUIBB CO BRISTOLMYERS SQUIBB CO NEW YORK STEPHEN CHESNOFF 54 YEARS OLD ASSOCIATE GENERAL COUNSEL SINCE 1993 WAS NAMED CORPORATE VICE PRESIDENT TRADEMARKS AND COPYRIGHTS CONTINUING HIS RESPONSIBILITY FOR PROTECTING THE COMPANY'S TRADEMARK AND COPYRIGHT PORTFOLIO DOMINIC M MEZZAPELLE 62 MOST RECENTLY ASSOCIATE GENERAL COUNSEL WAS NAMED CORPORATE VICE PRESIDENT PATENTS RICHARD L STERN 54 ALSO ASSOCIATE GENERAL COUNSEL WAS NAMED CORPORATE VICE PRESIDENT LITIGATION EACH OF THE THREE POSITIONS IS NEW BRISTOLMYERS IS A PHARMACEUTICAL AND CONSUMERPRODUCTS CONCERN 9404180126 940418 CLOSED END FUNDS FRIDAY APRIL 15 1994 PROCEEDS IN SECURITIES UNLIKE OPENEND FUNDS CLOSEDENDS GENERALLY DO NOT BUY THEIR SHARES BACK FROM INVESTORS WHO WISH TO CASH IN THEIR HOLDINGS INSTEAD FUND SHARES TRADE ON A STOCK EXCHANGE THE FOLLOWING LIST PROVIDED BY LIPPER ANALYTICAL SERVICES SHOWS THE EXCHANGE WHERE EACH FUND TRADES A AMERICAN C CHICAGO N NYSE O NASDAQ T TORONTO Z DOES NOT TRADE ON AN EXCHANGE THE DATA ALSO INCLUDE THE FUND'S MOST RECENT NET ASSET VALUE ITS CLOSING SHARE PRICE ON THE DAY NAV WAS CALCULATED AND THE PERCENTAGE DIFFERENCE BETWEEN THE MARKET PRICE AND THE NAV OFTEN CALLED THE PREMIUM OR DISCOUNT FOR EQUITY FUNDS THE FINAL COLUMN PROVIDES 52WEEK RETURNS BASED ON MARKET PRICES PLUS DIVIDENDS FOR BOND FUNDS THE FINAL COLUMN SHOWS THE PAST 12 MONTHS' INCOME DISTRIBUTIONS AS A PERCENTAGE OF THE CURRENT MARKET PRICE FOOTNOTES APPEAR AFTER A FUND'S NAME A THE NAV AND MARKET PRICE ARE EX DIVIDEND B THE NAV IS FULLY DILUTED C NAV MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF THURSDAY'S CLOSE D NAV MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF WEDNESDAY'S CLOSE E NAV ASSUMES RIGHTS OFFERING IS FULLY SUBSCRIBED V NAV IS CONVERTED AT THE COMMERCIAL RAND RATE Y NAV AND MARKET PRICE ARE IN CANADIAN DOLLARS ALL OTHER FOOTNOTES REFER TO UNUSUAL CIRCUMSTANCES EXPLANATIONS FOR THOSE THAT APPEAR CAN BE FOUND AT THE BOTTOM OF THIS LIST N/A SIGNIFIES THAT THE INFORMATION IS NOT AVAILABLE OR NOT APPLICABLE 9404180124 940418 BOND FUND SETS DISCLOSURE PACT ON DERIVATIVES BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL A MUNICIPALBOND FUND AGREED TO SETTLE WITH NEW YORK'S ATTORNEY GENERAL FOR ALLEGEDLY FAILING TO DISCLOSE THE RISKS IT TOOK BY INVESTING 40 OF ITS MONEY IN EXOTIC DERIVATIVE SECURITIES THE CIVIL PROCEEDING IS IMPORTANT EVEN THOUGH NEW YORK MUNI FUND WHICH SETTLED WITHOUT ADMITTING OR DENYING ANY LAPSES IS RELATIVELY SMALL WITH 211 MILLION IN ASSETS NEW YORK ATTORNEY GENERAL OLIVER KOPPELL SAYS THIS IS THE FIRST TIME A BOND FUND HAS SETTLED WITH REGULATORS FOR FAILING TO TELL INVESTORS ENOUGH ABOUT ITS USE OF FIXEDINCOME DERIVATIVES MOREOVER MR KOPPELL SAYS NEW YORK IS INVESTIGATING OTHER FUNDS' DISCLOSURE OF RISKS DUE TO FIXEDINCOME DERIVATIVES ESPECIALLY SOCALLED INVERSE FLOATERS ALTHOUGH DERIVATIVES DIDN'T HURT THE FUND DURING THE PERIOD REGULATORS SCRUTINIZED THROUGH 1993 THE FUND TOOK A FIRSTQUARTER DIVE OF 713 GETTING HURT WORSE THAN ITS RIVALS THE SETTLEMENT COMES AS REGULATORS ELSEWHERE GRAPPLE WITH A RELATED QUESTION DOES THE HEAVY USE OF DERIVATIVES WHOSE PRICES REFLECT ZIGZAGS IN OTHER SECURITIES PUT IMPROPER LEVERAGE ON MUTUAL FUNDS FEDERAL LAW LIMITS THE AMOUNT OF LEVERAGE OR BORROWING A FUND CAN USE BUT DOESN'T DIRECTLY ADDRESS THE LEVERAGE INHERENT IN MANY DERIVATIVES THE SECURITIES AND EXCHANGE COMMISSION HAS INCREASED ITS SCRUTINY OF DERIVATIVE HOLDINGS AND OF DISCLOSURES ABOUT THEM BY FUNDS THE SEC STAFF IS ALSO CONSIDERING NEW REQUIREMENTS ON WHAT IS DISCLOSED TO FUND HOLDERS ABOUT DERIVATIVES BUT SOME REGULATORS REMAIN CONCERNED ARGUABLY TOO MUCH ROOM FOR PLAY REMAINS SAYS SEC COMMISSIONER RICHARD ROBERTS IN RESPONSE TO THE ATTORNEY GENERAL'S INQUIRY NEW YORK MUNI HAS CHANGED ITS SALES MATERIAL TO EXPLAIN THAT IT DOES EMPLOY AN AGGRESSIVE OR RISKIERTHANAVERAGE INVESTMENT STRATEGY IT ALSO NOW GIVES MORE DETAILS ON ITS HOLDINGS OF DERIVATIVES INCLUDING A DISCUSSION OF THEIR ROLE IN THE FUND AND A PIE CHART OF HOLDINGS MOREOVER AS PART OF ITS SETTLEMENT THE FUND AGREED TO SUBMIT NEW SALES MATERIAL TO THE DEPARTMENT OF LAW OF THE STATE OF NEW YORK FOR PRIOR REVIEW FOR THE NEXT THREE YEARS THE FUND ALSO AGREED IN THE PROCEEDING FORMALLY CALLED AN ASSURANCE OF DISCONTINUANCE TO SET UP A COMMITTEE OF THREE OUTSIDE DIRECTORS TO REVIEW THE FUND'S INVESTMENT POLICIES AND SHAREHOLDER COMMUNICATIONS ALSO THE FUND WILL PAY THE STATE 37500 TO COVER THE COST OF THE PROCEEDING OUR ADVERTISING HAS ALWAYS CONFORMED WITH INDUSTRY STANDARDS SAYS VINCENT MALANGA PRESIDENT OF NEW YORK MUNI FUND WHICH IS PART OF THE FUNDAMENTAL FAMILY OF FUNDS IN NEW YORK THE NEW YORK ATTORNEY GENERAL SEEMS TO BE SEEKING GREATER DISCLOSURE THAN HAS BEEN THE CASE IN THE PAST MR MALANGA SAYS WE DON'T DISAGREE WITH THAT AS LONG AS OTHER FUNDS ARE ALSO REQUIRED TO DISCLOSE MORE ABOUT RISKS FROM DERIVATIVES NEW YORK STATE SAYS AND MR MALANGA CONFIRMS THAT AT THE END OF 1994 THE FUND HAD INVESTED NEARLY 40 OF ITS ASSETS IN A TYPE OF DERIVATIVE SECURITY CALLED AN INVERSE FLOATER INVERSE FLOATERS AS THEIR NAME SUGGESTS ARE FLOATINGRATE BONDS WHOSE YIELDS MOVE INVERSELY TO CHANGES IN INTEREST RATES THAT IS IF INTEREST RATES WENT DOWN ONE PERCENTAGE POINT THESE BONDS' YIELDS WOULD GO UP SOMETIMES BY SEVERAL PERCENTAGE POINTS AND THEIR PRICES WOULD DIVE THIS INVERSE FEATURE MEANS THESE BONDS WORK GREAT WHEN INTEREST RATES FALL BUT ARE SEVERELY HURT WHEN RATES RISE MR MALANGA SAYS THAT MOST OF THE INVERSE FLOATERS OWNED BY THE FUND ARE SHORT IN DURATION MEANING THAT THEY DON'T SWING IN PRICE AS SHARPLY AS LONGDURATION INVERSE FLOATERS CURRENTLY THE FUND HAS ABOUT 30 OF ITS ASSETS IN THESE DERIVATIVES MR MALANGA SAYS THE FUND HAD THE BEST RECORD AMONG NEW YORK MUNICIPALBOND FUNDS FOR THE THREE YEARS THROUGH THE END OF 1993 A STATEMENT CONFIRMED BY LIPPER ANALYTICAL SERVICES INC BUT THIS YEAR THE FUND HAS PERFORMED WORSE THAN MOST MUNI FUNDS INVESTING IN NEW YORK LOSING 713 IN THE THREE MONTHS THROUGH THE END OF MARCH COMPARED WITH A LOSS OF 593 FOR COMPARABLE NEW YORK FUNDS ON AVERAGE GIVEN THE RISE IN INTEREST RATES THIS YEAR THE FUND'S PERFORMANCE SUGGESTS IT WAS MORE HEAVILY EXPOSED TO INTERESTRATE RISK THROUGH SUCH DERIVATIVES AS INVERSE FLOATERS MR MALANGA SAYS THAT THE FUND DIDN'T EXPECT THE INTERESTRATE RISE AND THAT IT PREFERS TO BE JUDGED BY LONGTERM RESULTS NEW YORK ALSO SAYS IT WAS CONCERNED ABOUT COMPARISONS BETWEEN BANK CERTIFICATE OF DEPOSIT YIELDS AND THE FUND'S YIELD IN SALES LITERATURE IT'S IMPORTANT FOR INVESTORS TO REALIZE THE DIFFERENCE BETWEEN BANK DEPOSITS AND BOND FUNDS BUT YOU CAN NEVER SAY THAT ENOUGH SAYS DAVID WIEDER A VICE PRESIDENT AT NEW YORK MUNI NEW YORK MUNI FUND TANGLED WITH NEW YORK'S ATTORNEY GENERAL IN THE MID1980S OVER USE OF THE TERM NOLOAD FUND THE FUND'S CURRENT MANAGER LANCE M BROFMAN WAS ALSO THE MANAGER THEN BUT THE COMPANY HE NOW WORKS FOR FUNDAMENTAL PORTFOLIO ADVISORS INC IS DIFFERENT FROM THE FIRM THAT ADVISED THE FUND EARLIER THE SETTLEMENT BY NEW YORK MUNI IS THE SECOND TIME IN LESS THAN A YEAR THAT NEW YORK OFFICIALS HAVE ASKED MUTUAL FUNDS TO CHANGE THEIR ADVERTISING IN JULY THE NEW YORK CITY DEPARTMENT OF CONSUMER AFFAIRS COMPLAINED THAT DREYFUS CORP FRANKLIN RESOURCES INC AND CHARLES SCHWAB ENGAGED IN DECEPTIVE ADVERTISING ALL THREE FIRMS EVENTUALLY SETTLED THE CHARGES 9404180123 940418 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT AND DOW JONES NEWS SERVICE ALIAS RESEARCH INC TWO MILLION SHARES VIA ROBERTSON STEPHENS & CO ANDRX CORP INITIAL 2750000 VIA KIDDER PEABODY & CO OPPENHEIMER & CO AND GRUNTAL & CO ARM MORTGAGE INVESTMENT CORP INITIAL 55 MILLION SHARES VIA PAINEWEBBER INC CCUBE MICROSYSTEMS INITIAL 24 MILLION SHARES VIA LEHMAN BROTHERS INC CAMPO ELECTRONICS APPLIANCES & COMPUTERS INC 15 MILLION SHARES VIA KEMPER SECURITIES INC CELERITEK INC INITIAL 1550000 SHARES VIA HAMBRECHT & QUIST INC CONAGRA CAPITAL LC 200 MILLION OF CUMULATIVE PREFERRED SECURITIES VIA SMITH BARNEY SHEARSON INC DT INDUSTRIES INITIAL 45 MILLION SHARES VIA CS FIRST BOSTON INC INHALE THERAPEUTIC SYSTEMS INITIAL 25 MILLION SHARES VIA LEHMAN BROTHERS INC JPS AUTOMOTIVE PRODUCTS CORP INITIAL 65 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP JPS AUTOMOTIVE PRODUCTS CORP 150 MILLION OF SENIOR NOTES VIA DONALDSON LUFKIN & JENRETTE KEMPER STRATEGIC INCOME FUND INITIAL FOUR MILLION SHARES VIA KEMPER SECURITIES MEDAREX INC 25 MILLION SHARES VIA KEMPER SECURITIES AND JOSEPHTHAL LYON & ROSS INC MESA INC 23 MILLION SHARES VIA MERRILL LYNCH & CO PAINEWEBBER INC AND SALOMON BROTHERS INC MICRO WAREHOUSE INC 44 MILLION SHARES VIA MONTGOMERY SECURITIES PROFESSIONAL BANCORP INC 250000 SHARES VIA VAN KASPER & CO PROJECT SOFTWARE & DEVELOPMENT INC INITIAL 2050000 SHARES VIA PIPER JAFFRAY INC SELECTIVE INSURANCE GROUP INC 17 MILLION SHARES VIA MERRILL LYNCH TRANSACTION NETWORK SERVICES INC INITIAL 18 MILION SHARES VIA HAMBRECHT & QUIST SAN FRANCISCO CITY & COUNTY AIRPORTS COMMISSION 90 MILLION OF REVENUE BONDS WHICH ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX VIA COMPETITIVE BID TEXAS PUBLIC FINANCE AUTHORITY 3172 MILLION OF IMPROVEMENT BONDS VIA COMPETITIVE BID ARIZONA STUDENT LOAN ACQUISITION AUTHORITY 1176 MILLION OF SERIES 1994 A B AND C STUDENTLOAN REVENUE BONDS VIA AN AG EDWARDS & SONS INC GROUP PENNSYLVANIA TURNPIKE COMMISSION 110 MILLION OF OILFRANCHISE TAX REVENUE BONDS VIA AN RRZ PUBLIC MARKETS INC GROUP PUERTO RICO ELECTRIC POWER AUTHORITY 525 MILLION OF REFUNDING BONDS VIA A BEAR STEARNS & CO GROUP 9404180122 940418 REAL ESTATE FLASHY VS FLASHIER DEVELOPERS DEBATE TIMES SQUARE'S FUTURE BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL IF CITY AND STATE PLANNERS HAVE THEIR WAY THE REDEVELOPMENT OF NEW YORK'S SQUALID TIMES SQUARE WILL BE HIGHLIGHTED BY HUGE NEW SIGNS DESIGNED TO DAZZLE THE EYE BUT IF PRUDENTIAL INSURANCE HAS ITS WAY THE EYE WILL BE A BIT LESS DAZZLED THE EFFORT BY URBAN PLANNERS TO PUT THE RAZZMATAZZ BACK INTO TIMES SQUARE HAS BEEN GATHERING STEAM WALT DISNEY CO PLANS TO OPEN A THEATER IN THE AREA AND TIME WARNER INC'S MUSIC DIVISION IS CONSIDERING THE SAME IDEA BUT PRUDENTIAL INSURANCE CO OF AMERICA TOGETHER WITH PARK TOWER REALTY A PROMINENT MANHATTAN DEVELOPER HAVE ALREADY INVESTED MORE THAN 300 MILLION IN A PLAN TO BUILD FOUR OFFICE TOWERS AROUND TIMES SQUARE AND THEY WANT TO PROTECT THAT INVESTMENT SO THEY ARE BICKERING WITH CITY AND STATE OFFICIALS OVER THE DETAILS OF AN AGREEMENT THAT REQUIRES THEM TO ERECT FLASHY NEW SIGNS DRAW POPULAR RETAILERS AND HELP FINANCE THE RENOVATION OF NINE HISTORIC THEATERS THERE IS A CULTURAL DIFFERENCE BETWEEN PRUDENTIAL'S VISION OF THE PROJECT WHAT I WOULD CHARACTERIZE AS ANOTHER ROCKEFELLER CENTER AND OUR VISION WHICH IS 42ND STREET AND TIMES SQUARE SAYS ARCHITECT ROBERT AM STERN WHO JUMPSTARTED THE TIMES SQUARE DEVELOPMENT PROJECT LAST YEAR WITH A PLAN THAT HEWED TO THE AREA'S ENTERTAINMENT ROOTS BRIAN MURPHY A SENIOR VICE PRESIDENT OF PRUDENTIAL REALTY GROUP BRISTLES AT SUCH A COMPARISON HE STRIDES OVER TO A SCALE MODEL OF ONE OF THE PLANNED OFFICE BUILDINGS A PHILIP JOHNSON DESIGN THAT INCORPORATES HIGHTECH SIGNS INTO THE WINDOWS ON THE LOWER FLOORS AND DEMANDS TESTILY DOES THAT LOOK LIKE ROCKEFELLER CENTER MORE TO THE POINT MR MURPHY SAYS THAT SIGN EXPERTS HIRED BY PRUDENTIAL DETERMINED THAT THE HUGE HIGHTECH SIGNS ENVISIONED BY MR STERN WOULD COST PRUDENTIAL FAR MORE THAN THE STATE HAS ESTIMATED THE SEEDS OF THE DISPUTE GO BACK TO 1988 WHEN PRUDENTIAL AND PARK TOWER IN EXCHANGE FOR THE DEVELOPMENT RIGHTS TO FOUR SITES IMMEDIATELY SURROUNDING TIMES SQUARE AGREED TO POST A 241 MILLION LETTER OF CREDIT FROM WHICH THE STATE OF NEW YORK WOULD DRAW MONEY TO BUY FROM CURRENT OWNERS A NUMBER OF BUILDINGS IT PLANNED TO CONDEMN THE DEVELOPERS INTENDED TO RECOUP THEIR INVESTMENT THROUGH FUTURE TAX BREAKS ON OFFICES THEY AGREED TO BUILD WITHIN A YEAR OF RECEIVING THE LAND BUT BY 1990 IT WAS CLEAR THAT NEW YORK CITY'S FALTERING OFFICE MARKET HAD NO NEED FOR THE SPACE IN MID1992 THE CITY AND STATE SIGNED A MEMORANDUM OF UNDERSTANDING THAT ALLOWED PRUDENTIAL TO POSTPONE CONSTRUCTION OF THE OFFICE BUILDINGS FOR UP TO 10 YEARS AND RELEASED IT FROM ITS OBLIGATION TO FINANCE 91 MILLION OF SUBWAY IMPROVEMENTS IN RETURN THE DEVELOPERS TENTATIVELY AGREED TO MEET THE DESIGN REQUIREMENTS OF MR STERN UNDER THE TERMS OF THAT AGREEMENT THE DEVELOPERS WOULD FIX UP THE AGING BUILDINGS ALREADY OCCUPYING THE OFFICE SITES OUTFIT THEM WITH SHOWY SIGNS AND OFFER LEASES TO APPROPRIATE RETAILERS RESTAURANTS OR ENTERTAINMENT FACILITIES THE AGREEMENT ALSO CALLS FOR PRUDENTIAL TO PROVIDE 182 MILLION FOR THE RENOVATION OF NEARBY THEATERS BUT NOW PRUDENTIAL AND PARK TOWER ARE COMPLAINING THAT THE HUGE SIGNS THE STATE WANTS ARE TOO FLASHY AND EXPENSIVE THEY HAVE ALSO TURNED DOWN THE STATE'S REQUEST TO HELP FINANCE A THEATER RENOVATION FOR DISNEY AND HAVE REBUFFED EFFORTS BY MADAME TUSSAUD'S WAX MUSEUM TO OPEN A MUSEUM ON ONE OF THEIR SITES THE DEVELOPER HAS ALWAYS ATTEMPTED TO REDUCE THE ENTERTAINMENT AND SIGNAGE ASPECTS ON HIS SITES AND ON ADJACENT SITES WE'D HAVE NO DISNEY RIGHT NOW IF IT WERE UP TO THE DEVELOPER SAYS VINCENT TESE CHAIRMAN OF THE NEW YORK STATE URBAN DEVELOPMENT CORP WHICH IS SPEARHEADING THE PROJECT IN A MEETING WITH DISNEY OFFICIALS HE SAYS THE DEVELOPERS SAID THEY THOUGHT DISNEY DIDN'T BRING ANYTHING TO THE PROJECT GEORGE KLEIN HEAD OF PARK TOWER SAYS THAT REMARK WAS TAKEN OUT OF CONTEXT AND THAT THE DEVELOPMENT TEAM IS ENTHUSIASTIC ABOUT DISNEY'S PLANS WE AGREE IN PRINCIPLE THAT THE PROJECT NEEDS TO BE BRIGHT LIVELY AND REFLECT WHAT TIMES SQUARE SHOULD BE MR KLEIN SAYS IT'S JUST A QUESTION OF INTERPRETATION OF MR STERN'S PLAN REBECCA ROBERTSON PRESIDENT OF 42ND STREET DEVELOPMENT PROJECT INC A SUBSIDIARY OF THE URBAN DEVELOPMENT CORP INSISTS THAT THE STATE IS SYMPATHETIC TO THE DEVELOPERS' CONCERNS ABOUT THE COST OF THE SIGNS NOTING THAT THE SUBSTANTIAL SUM ALREADY INVESTED BY PRUDENTIAL IS THE REASON THEY HAVE TO BE DEALT WITH FAIRLY IF THE DEVELOPERS' RELUCTANCE TO ACCEDE TO THE PLAN IS A MATTER OF MONEY SHE SAYS WE'LL SHARE THE RISK PUBLIC OFFICIALS PRIVATELY EXPRESS FRUSTRATION THAT PRUDENTIAL HAS NOT MADE A DEAL WITH MADAME TUSSAUD'S WHICH HAS PRESENTED THE DEVELOPER WITH SEVERAL PROPOSALS FOR LOCATING A MUSEUM ON ONE OF ITS OFFICE SITES MR KLEIN SAYS HE HAS NO OBJECTION IN PRINCIPLE TO LEASING SPACE TO TUSSAUD'S BUT THAT THE MUSEUM HASN'T PRESENTED AN ECONOMIC PROPOSAL BUT SEVERAL PEOPLE INVOLVED IN HIS NEGOTIATIONS WITH PUBLIC OFFICIALS CONTEND THAT MR KLEIN'S UNSPOKEN CONCERN ABOUT BOTH MADAME TUSSAUD'S AND THE NEW SIGNS IS THE POSSIBILITY THEY WOULD REPEL POTENTIAL OFFICE CLIENTS THERE IS A FEAR THAT IF YOU HAVE MADAME TUSSAUD'S IN THE BASEMENT OF YOUR OFFICE BUILDING IT'S NOT AN IBMTYPE STRUCTURE SAYS ONE NEGOTIATOR INDEED LAST YEAR MORGAN STANLEY & CO BOUGHT AN OFFICE TOWER JUST NORTH OF TIMES SQUARE FOR ITS NEW HEADQUARTERS WHEN YOU HAVE MORGAN STANLEY WILLING TO BUY 1585 BROADWAY WHICH ISN'T FAR FROM THE HONKYTONK YOU'RE NOT GOING TO HAVE PROBLEMS FINDING TENANTS FOR AN OFFICE TOWER IN AN ENTERTAINMENT DISTRICT ARGUES STEPHEN SIEGEL PRESIDENT OF THE EDWARD S GORDON CO BROKERAGE FIRM BOTH MR KLEIN AND STATE OFFICIALS EXPRESS CONFIDENCE THAT THE TWO SIDES WILL RESOLVE THEIR DIFFERENCES BY THIS SUMMER UNDER THE CURRENT AGREEMENT IF PRUDENTIAL DOESN'T SIGN A NEW ONE BY AUG 1 THE CITY CAN FORCE IT TO BEGIN CONSTRUCTION OF AN OFFICE BUILDING OR DEFAULT ON THEIR DEVELOPMENT RIGHTS IN THE MEANTIME WITH MORE AND MORE RETAILERS EXPRESSING INTEREST IN THE AREA PRUDENTIAL AND PARK TOWER ARE LIKELY TO COME UNDER INCREASING PRESSURE BY PROJECT BOOSTERS THEY ARE BEHAVING LIKE THE HEAVIES IN A MELODRAMA COMPLAINS MR STERN AND SOON THEY'RE GOING TO HAVE THE CROWDS HISSING 9404180121 940418 INTERNATIONAL ITALY'S NONEU TRADE SURPLUS ROME ITALY'S FOREIGN TRADE SURPLUS WITH NONEUROPEAN UNION COUNTRIES ROSE TO 2073 TRILLION LIRE 127 BILLION IN FEBRUARY FROM A YEAREARLIER SURPLUS OF 248 BILLION LIRE 1519 MILLION ACCORDING TO THE STATE STATISTICAL OFFICE ISTAT ISTAT SAID THE RISE COULD BE ATTRIBUTED TO INCREASED PENETRATION OF FOREIGN MARKETS BY TRADITIONALLY STRONG TEXTILES CLOTHING METALLURGY AND OTHER INDUSTRIAL MANUFACTURING INDUSTRIES ISTAT SAID THE STATISTICS ARE PROVISIONAL AND AREN'T SEASONALLY ADJUSTED 9404180120 940418 BUSINESS BRIEF DELUXE CORP COMPANY BUYS CAPITAL STOCK OF NRC HOLDINGS UNIT DELUXE CORP ACQUIRED ALL THE CAPITAL STOCK OF NRC HOLDING CORP AND ITS NATIONAL REVENUE UNIT A COLLECTIONSERVICES FIRM IN COLUMBUS OHIO TERMS WEREN'T DISCLOSED DELUXE IN ST PAUL MINN SAID NATIONAL REVENUE PROVIDES ACCOUNTSRECEIVABLE MANAGEMENT AND COLLECTION SERVICES FOR ABOUT 25000 RETAIL COMMERCIAL MEDICAL AND FINANCIALCREDIT COMPANIES IT HAD 1993 REVENUE OF ABOUT 25 MILLION 9404180119 940418 REVIEW & OUTLOOK EDITORIAL ASIDES LEAVING INDICATOR THE ULTIMATE ESCAPE FROM INCREASING US TAXES IS TO RENOUNCE ONE'S CITIZENSHIP IN 1993 ACCORDING TO THE STATE DEPARTMENT 306 AMERICANS TOOK THIS STEP DOUBLE THE NUMBER IN 1992 AN EARLIER BLIP TO 240 WAS SEEN IN 1991 WITH GEORGE BUSH'S TAX INCREASE IN THE LATE 1980S THE NUMBER AVERAGED IN THE LOW 100S AND FROM 198285 THE HEYDAY OF REAGANOMICS ONLY 19 TOTAL RENUNCIATIONS WERE RECORDED 9404180118 940418 WHO'S NEWS CALIFORNIA REAL ESTATE INVESTMENT TRUST CALIFORNIA REAL ESTATE INVESTMENT TRUST SACRAMENTO CALIF THE REAL ESTATE INVESTMENT TRUST SAID ITS MAJORITY SHAREHOLDER COMMONWEALTH EQUITY TRUST ELECTED A NEW BOARD OF TRUSTEES THE NEW BOARD CONSISTS OF FRANK MORROW HOWARD COHN AND MARK BENNETT WHO ARE MANAGERS OF COMMONWEALTH EQUITY WHICH OWNS 77 OF CAL REIT THE NEW TRUSTEES WILL ALSO SERVE AS INTERIM OFFICERS OF CAL REIT THE COMPANY DIDN'T IMMEDIATELY RETURN PHONE CALLS TO EXPLAIN THE CHANGE IN A STATEMENT CAL REIT SAID IT DOESN'T EXPECT THE CHANGES WILL CAUSE ANY DISRUPTION IN THE OPERATION OF THE TRUST 9404180117 940418 MARKETING & MEDIA ADVERTISING KETCHUM COMMUNICATIONS PLANS TO TIE THE KNOT WITH JERRY INC BY KEVIN GOLDMAN IN AN UNLIKELY AND SURPRISE MARRIAGE KETCHUM COMMUNICATIONS A PITTSBURGH ADVERTISING AGENCY CONCLUDED ITS TWOYEAR QUEST FOR A LARGER NEW YORK PRESENCE BY AGREEING TO MERGE WITH JERRY INC AN UPSTART 17MONTHOLD MICROAGENCY FOUNDED BY JERRY DELLA FEMINA THE FLAMBOYANT BULLETHEADED EXECUTIVE WHO CRAVES THE SPOTLIGHT THE MERGER INITIATED BY MR DELLA FEMINA AND QUIETLY PUT TOGETHER IN LESS THAN THREE MONTHS WILL CREATE A SMALL AGENCY JERRY & KETCHUM WITH BILLINGS OF 70 MILLION TO 80 MILLION AND 50 EMPLOYEES 30 OF WHOM HAD BEEN AT KETCHUM KETCHUM WITH CLIENTS INCLUDING COTY THE FRENCH GOVERNMENT TOURIST OFFICE AND THE TRAVEL TRADE ADVERTISING OF AMERICAN EXPRESS BILLED 55 MILLION TO 60 MILLION JERRY INC'S CLIENT ROSTER INCLUDES THE NEW YORK METS NEWSWEEK EMPIRE KOSHER POULTRY AND PUDGIE'S CHICKEN IN ESSENCE KETCHUM IS MERGING LESS WITH MR DELLA FEMINA'S AGENCY THAN WITH THE 57YEAROLD'S PERSONA WHEN CLIENTS HIRE JERRY INC THEY ARE BUYING INTO THE ZANY PERSONALITY OF THE HIGHPROFILE EXECUTIVE WHO OWNS TWO WELLREVIEWED RESTAURANTS AND A GOURMET FOOD MARKET IN EAST HAMPTON NY THE ODD MATCH IS KETCHUM'S LATEST ATTEMPT TO JUMPSTART ITS LACKLUSTER NEW YORK OPERATION IN MID1992 ITS CHAIRMAN AND CHIEF EXECUTIVE PAUL H ALVAREZ ENTERED INTO PROLONGED AND SOME WOULD SAY ARDUOUS NEGOTIATIONS WITH AYER THE NATION'S OLDEST INDEPENDENT AGENCY BUT THE TALKS ULTIMATELY COLLAPSED WITH BOTH SIDES CITING PHILOSOPHICAL DIFFERENCES ABOUT HOW THE COMBINED AGENCIES WOULD OPERATE KETCHUM IS STRONG ON THE WEST COAST WHERE IT HANDLES THE ADS FOR HONDA'S ACURA DIVISION BUT ITS ATTEMPTS TO MAKE A DENT IN THE NEW YORK MARKET HAVE BEEN WOEFULLY STALLED IN THE LAST THREE YEARS THREE TOP EXECUTIVES AT KETCHUM/NEW YORK HAVE DEPARTED AND NOT ALL VOLUNTARILY THE NEW ALLIANCE RESULTED IN AT LEAST ONE CASUALTY STEVEN PENCHINA 48 YEARS OLD WHO WAS NAMED KETCHUM/NEW YORK'S CHAIRMAN AND EXECUTIVE CREATIVE DIRECTOR EXACTLY TWO YEARS AGO LAST FRIDAY IS LEAVING I DECIDED I DIDN'T WANT TO BE PART OF THE MERGER HE SAID IN AN INTERVIEW FROM HIS CAR PHONE IT BECAME ABUNDANTLY CLEAR THAT TWO CREATIVE STARS LIKE ME AND JERRY COULDN'T SHARE THE SPOTLIGHT I'M LOOKING AT THIS AS A NEW BEGINNING MR PENCHINA SAYING HIS CONTRACT RUNS FOR MANY MONTHS SAYS HE IS EXPLORING SEVERAL OPTIONS INCLUDING STARTING HIS OWN AGENCY WORKING FOR A MAJOR AGENCY OR JOINING A MIDSIZE SHOP AS A PARTNER A SPOKESMAN FOR THE NEW AGENCY SAID IT EXPECTS FEW IF ANY ADDITIONAL LAYOFFS JOINING JERRY & KETCHUM THE NAME WAS SUGGESTED BY MR ALVAREZ IS AN AFFABLE AND SAVVY MADISON AVENUE VETERAN JACK TAYLOR WHO HAD BEEN SERVING AS A CONSULTANT TO JERRY INC MR TAYLOR 59 WILL JOIN FORMALLY AS CHIEF OPERATING OFFICER PRESIDENT AND DIRECTOR OF ACCOUNT SERVICES HE SPENT 14 YEARS AS VICE CHAIRMAN OF JORDON MCGRATH CASE & TAYLOR LEAVING LAST YEAR IN AN INTERVIEW AT JERRY INC'S MIDTOWN MANHATTAN OFFICES ONE OF THE FEW AGENCIES ACTUALLY REMAINING ON MADISON AVENUE MR DELLA FEMINA SAID HE CALLED MR ALVAREZ IN LATE JANUARY BECAUSE HIS AGENCY GREW FASTER THAN HE HAD ANTICIPATED IF WE DIDN'T GET INVOLVED WITH SOMEONE WITH NATIONAL ENERGY AND RESOURCES IT WOULD HAVE TAKEN US ANOTHER TWO TO THREE YEARS TO GET TO THE NEXT STEP FOR THIS AGENCY TO GROW SAID MR DELLA FEMINA BECAUSE OF THE MERGER THE AGENCY CAN NOW PITCH ITSELF TO CLIENTS WITH BILLINGS OF 30 MILLION OR MORE MR ALVAREZ WHO HAD NEVER MET MR DELLA FEMINA PRIOR TO THEIR FIRST CLANDESTINE MEETING AT MANHATTAN'S MICHAELANGELO HOTEL SAID IN AN INTERVIEW THAT HE RECOGNIZED THE POSSIBILITIES OF THE JOINT VENTURE WITHIN MINUTES MR ALVAREZ SAID HE LOVES THE FACT THAT I CAN SHAKE UP THE ORGANIZATION AND ALTER THE PERCEPTION THAT KETCHUM IS SO BUSINESSMINDED THE TWO EXECUTIVES SAY THERE AREN'T ANY CLIENT CONFLICTS THE CLOSEST IS JERRY INC'S HANDLING OF THE METS' ADVERTISING WHILE KETCHUM IN PITTSBURGH HAS THE PIRATES AS A CLIENT KETCHUM WILL MOVE FROM ITS PRESENT HEADQUARTERS IN THE NEW YORK DAILY NEWS BUILDING TO JERRY INC'S OFFICES MR DELLA FEMINA CONDUCTED THE TALKS IN HIS USUAL AUDACIOUS STYLE ONCE EVEN INVITING MR ALVAREZ TO LUNCH AT THE TONY FOUR SEASONS RESTAURANT AN ESTABLISHMENT FREQUENTED BY ADVERTISING EXECUTIVES HE PROFESSED NOT TO CARE WHETHER THE TWO WERE SEEN IN DEEP CONVERSATION I WAS THE NERVOUS ONE MR ALVAREZ SAYS PRIOR TO LINKING UP WITH KETCHUM MR DELLA FEMINA SAYS HE WAS APPROACHED BY SOMEONE REPRESENTING AN UNNAMED BRITISH CONGLOMERATE THAT WAS INTERESTED IN HAVING HIM RUN AN AGENCY HE ASKED WHAT WOULD HAPPEN TO HIS AGENCY AND WAS TOLD IT WOULD BE FOLDED INTO THE LARGER AGENCY THAT DIDN'T SOUND LIKE FUN HE SAYS BY MERGING WITH KETCHUM MR DELLA FEMINA IS BEING TRUE TO THE PROCLAMATION HE MADE WHEN JERRY INC WAS CREATED IN NOVEMBER 1992 HE SAID HE WASN'T INTERESTED IN FINANCIAL PARTNERS ONLY WORKING PARTNERS INDEED THE AGENCY WILL BE OPERATED AS A JOINT VENTURE MR DELLA FEMINA REMAINS PROHIBITED FROM USING HIS MARQUEE SURNAME AS A RESULT OF A BITTER DEPARTURE FROM HIS LAST AGENCY DELLA FEMINA MCNAMEE IN JUNE 1992 HIS FORMER AGENCY'S PARENT EURO RSCG AGREED TO BUY OUT MR DELLA FEMINA'S CONTRACT WHICH WAS TO EXPIRE IN 1996 FOR AN UNDETERMINED SEVENFIGURE SUM AS PART OF THE TERMINATION AGREEMENT HE WAS PERMITTED TO RETURN TO THE AD BUSINESS PROVIDING HE DIDN'T NAME ANY NEW AGENCY AFTER HIMSELF MR DELLA FEMINA WON'T BUSY HIMSELF WITH KETCHUM OPERATIONS OUTSIDE NEW YORK WE'RE A NEW YORK AGENCY HE SAYS MR DELLA FEMINA WILL BECOME A MEMBER OF THE KETCHUM US ADVERTISING EXECUTIVE COMMITTEE THE MERGER WITH KETCHUM SAID MR DELLA FEMINA IS A WAY NOT TO BREAK UP THE FUN THE FAMILY IS HAVING NOW THE FUN AND THE FAMILY WILL BE EXTENDED HARVEY HOFFENBERG CHAIRMAN AND CHIEF EXECUTIVE OF SAATCHI & SAATCHI ADVERTISING'S NEW YORK OFFICE WAS RELIEVED OF THE CHIEF'S POST JUST SIX MONTHS AFTER TAKING IT ON BILL MUIRHEAD HEAD OF THE AGENCY'S NORTH AMERICAN OPERATIONS HAS ASSUMED THE ROLE THE AGENCY SAID MR HOFFENBERG RETAINS THE TITLES OF CHAIRMAN AND CHIEF CREATIVE OFFICER THE MOVE SIGNALS THAT MR MUIRHEAD IS TAKING OVER SO HE CAN PUT HIS IMPRINT ON THE NEW YORK OFFICE SAID DICK O'BRIEN SAATCHI VICE CHAIRMAN SAATCHI & SAATCHI ADVERTISING IS A UNIT OF SAATCHI & SAATCHI CO MR HOFFENBERG COULDN'T BE REACHED FOR COMMENT MR MUIRHEAD CAME IN FROM SAATCHI'S LONDON OFFICE IN FEBRUARY TO HELP TURN AROUND THE AGENCY'S NORTH AMERICAN OPERATIONS AFTER THE LOSS OF SEVERAL BIG ACCOUNTS ACCOUNT GREY ADVERTISING WAS AWARDED CON EDISON'S ACCOUNT FOR ECONOMIC DEVELOPMENT ADVERTISING PREVIOUSLY HELD BY SAATCHI & SAATCHI CO'S SAATCHI & SAATCHI ADVERTISING 9404180116 940418 SIMTEK IS CONSIDERING ALTERNATIVE STRATEGIES INCLUDING POSSIBLE SALE COLORADO SPRINGS COLO SIMTEK CORP SAID ITS BOARD IS CONSIDERING ALTERNATIVE STRATEGIES INCLUDING POSSIBLY SELLING THE COMPANY AS A RESULT OF PLUMMETING SALES PRODUCTION DELAYS AND MOUNTING LOSSES THE MAKER OF SEMICONDUCTOR MEMORIES SAID IT FILLED ALL OPEN ORDERS FOR ITS TWO BIGGEST CUSTOMERS BY THE END OF THE YEAR AND FIRSTQUARTER SALES TOTALED ONLY 194000 BASED ON PRELIMINARY RESULTS LOSSES FOR THE FIRST QUARTER ARE EXPECTED TO REACH 16 MILLION SIMTEK SAID IN THE FIRST QUARTER LAST YEAR SIMTEK POSTED SALES OF 261000 AND A LOSS OF 26 MILLION THE COMPANY ALSO SAID IT EXPECTS DELAYS IN FILLING SOME CUSTOMER ORDERS THROUGH THE END OF THE SECOND QUARTER SIMTEK SAID THAT AS A RESULT OF A PUBLIC OFFERING IN FEBRUARY THE COMPANY HAS ENOUGH CASH TO MAINTAIN OPERATIONS THROUGH JANUARY IN ADDITION SIMTEK SAID IT HAS DELAYED FILING ITS 1993 10K REPORT DUE MARCH 31 WHILE THE BOARD ASSESSES THE COMPANY'S FUTURE 9404180115 940418 INTERNATIONAL LEGACY OF DUBIOUS DEALINGS BY STRAUSS DENTS POWER OF CSU PARTY IN BAVARIA BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL MUNICH GERMANY BECAUSE OF ITS LIGHTHEARTED ATMOSPHERE AND LOVE OF THE GOOD LIFE MUNICH'S FANS HAVE CALLED IT THE NORTHERNMOST CITY IN ITALY THESE DAYS AS ONE SCANDAL AFTER ANOTHER ROLLS OVER BAVARIA'S POLITICAL ESTABLISHMENT THE DESCRIPTION IS TAKING ON NEW MEANING THE FOCUS IS A DEAD MAN FRANZ JOSEF STRAUSS ONE OF THE GIANTS OF POSTWAR GERMAN POLITICS BUT THE SCANDALS ARE DENTING THE POWER OF THE PARTY HE LEFT BEHIND WHICH HAS CONTROLLED BAVARIA FOR 32 YEARS MR STRAUSS THE CORPULENT BLUSTERY ARCHCONSERVATIVE WHO SERVED AS DEFENSE AND FINANCE MINISTER IN BONN BEFORE RULING AS PREMIER OF BAVARIA FOR 12 YEARS HAS BECOME A STATE ICON IN THE SIX YEARS SINCE HIS DEATH MUNICH'S NEW AIRPORT WAS NAMED FOR HIM AS WAS THE STREET ON WHICH THE STATE CHANCELLERY SITS HIS FACE ADORNS GERMANY'S TWOMARK COIN BUT HE ALSO LEFT BEHIND A LEGACY OF DUBIOUS DEALINGS WITH LOCAL BUSINESSMEN THAT IS BEING UNEARTHED WITH GROWING DISMAY REVELATIONS ABOUT FAVORS HE AND HIS UNDERLINGS GAVE AND TOOK ARE UNDERMINING THE CHRISTIAN SOCIAL UNION THE PARTY BUILT BY MR STRAUSS THE CSU HAS TURNED BAVARIA INTO ITS FIEFDOM A RARE CORNER OF ONEPARTY RULE IN WESTERN EUROPE INDEED IN A YEAR IN WHICH GERMANS' TRUST IN THEIR POLITICIANS HAS PLUMMETED BECAUSE OF MYRIAD SCANDALS BAVARIA HAS HAD SO MANY OF THEM THAT SOME CALL IT AMIGOLAND A REFERENCE TO THE AMIGO AFFAIR THE FIRST OF THE SCANDALS THAT CONTROVERSY LAST YEAR FORCED THE RESIGNATION OF MR STRAUSS'S SUCCESSOR MAX STREIBL WHO HAD ACCEPTED FREE SOUTH AMERICAN VACATIONS FROM BAVARIAN BUSINESSMEN SINCE THEN AMIGO HAS BEEN SHORTHAND FOR THE POLITICIANS AND BUSINESSMEN WHO FLOURISHED IN A CULTURE OF MUTUAL COZINESS UNDER MR STRAUSS CAUSING THE MOST TURMOIL IS THE HELP THAT MR STRAUSS GAVE TO EDUARD ZWICK A TAXFUGITIVE WHO AMASSED A FORTUNE AT A THERMALBATH SPA DR ZWICK WHO NOW LIVES IN SWITZERLAND MANAGED TO RACK UP A BILL FOR 43 MILLION IN TAXES AND FINES HE DID THAT WHILE LENDING MR STRAUSS HIS AIRPLANE FETING HIM OFTEN IN FRANCE HELPING HIM SET UP SWISS BANK ACCOUNTS AND CONTRIBUTING SUBSTANTIALLY TO THE CSU ONCE EVEN SLIPPING A BUNDESTAG MEMBER THOUSANDS OF DOLLARS IN THE FORM OF POSTAGE STAMPS STATES COLLECT TAXES IN GERMANY AND MR STRAUSS APPEARS TO HAVE INTERVENED REPEATEDLY PRESSING BUREAUCRATS TO SETTLE THE TAX CASE HE EVEN ADVISED DR ZWICK A DIABETIC TO HAVE A DOCTOR CERTIFY HE WAS SERIOUSLY ILL SO THAT A WARRANT FOR HIS ARREST WOULD BE DROPPED THE SCANDAL HAS BEEN DRIVEN PARTLY BY CHARGES MADE BY DR ZWICK FROM SWITZERLAND OUT OF ANGER THAT HIS SON IS BEING HELD IN INVESTIGATIVE CUSTODY AS A POSSIBLE ACCOMPLICE FAMOUSLY ANTICOMMUNIST MR STRAUSS WAS IMPLICATED AS WELL IN QUESTIONABLE IMPORT DEALINGS WITH EASTERN GERMANY OFFICIALS AND WAS REVEALED TO HAVE RECEIVED INCOME FROM A PRIVATE BAVARIAN FOUNDATION THAT RIVALED HIS STATE SALARY THE ZWICK AFFAIR HOWEVER HAS BEEN THE SHOWSTOPPER FORCING ONE TOP CSU OFFICIAL TO RESIGN AND PUTTING BOTH THE STATE PREMIER EDMUND STOIBER AND HIS FINANCE MINISTER UNDER HEAVY PRESSURE MR STOIBER FOR MANY YEARS MR STRAUSS'S TOP AIDE HAS INSISTED HE HAD NOTHING TO DO WITH THE ZWICK MATTER LAST WEEK HOWEVER HE ADMITTED TO HAVING READ DOCUMENTS SHOWING MR STRAUSS'S INVOLVEMENT IN THE CASE BUT DEFENDED HIMSELF BY SAYING HE HAD SEEN ONLY FIVE OUT OF 168 PAGES HE THEN BLAMED HIS OPPONENTS AND THE MEDIA FOR A PUNCH BELOW THE BELT AND DECLARED THEY WON'T SUCCEED IN DEFAMING THIS GOVERNMENT OUT OF OFFICE THE TANGLED REVELATIONS COME AT AN INOPPORTUNE TIME FOR CHANCELLOR HELMUT KOHL MR KOHL'S BID FOR REELECTION IN OCTOBER DEPENDS ON A STRONG SHOWING FOR THE CSU WHICH IS THE BAVARIAN SISTER PARTY OF THE CHANCELLOR'S CHRISTIAN DEMOCRATS A NATIONAL MAJORITY FOR THIS GOVERNMENT REQUIRES A BETTERTHANAVERAGE PERFORMANCE IN BAVARIA SAYS HELMUT JUNG OF BASISRESEARCH WHOSE SURVEYS SHOW THAT THE CSU POPULARITY HAS FALLEN FIVE PERCENTAGE POINTS IN A MONTH AND NEARLY 14 POINTS SINCE THE LAST STATE ELECTION THE SLIPPAGE COMES AS MR KOHL'S POPULARITY RATINGS ARE INCHING UP AGAINST THE SOCIAL DEMOCRATIC CHALLENGER RUDOLF SCHARPING WHO HAS BEEN LEADING FOR MONTHS SOME LIKE DR JUNG BELIEVE THAT BAVARIANS ARE SO ATTACHED TO A PARTY THAT HAS STOOD FOR AN EXCLUSIVELY BAVARIAN IDENTITY AND INTERESTS THAT THE CSU COULD BOUNCE BACK BEYOND LEDERHOSEN AND FEATHERED HATS THAT IDENTITY HAS LARGELY MEANT PROPOUNDING ARGUMENTS SHUNNED BY MANY IN THE REST OF GERMANY MR STOIBER FOR EXAMPLE HAS RUN AFOUL OF MR KOHL BY REPUDIATING THE CHANCELLOR'S VISION OF EUROPEAN INTEGRATION IN FAVOR OF A MORE NATIONALIST POLICY HE STIRRED CONTROVERSY AS WELL BY WARNING AGAINST A RACIALLY MIXED PEOPLE IN GERMANY AND DENOUNCING A GOVERNMENTSPONSORED DEMONSTRATION AGAINST XENOPHOBIA SO FAR THOUGH THE CSU SHOWS LITTLE INCLINATION TO CHANGE TACK OR DIMINISH ITS CULT OF PERSONALITY FRANZ JOSEF STRAUSS LEFT HIS MARK NOT JUST IN POSTWAR HISTORY BUT IN THE HEARTS AND MINDS OF THE BAVARIAN PEOPLE SAYS ERWIN HUBER GENERAL SECRETARY OF THE CSU A FEW SUSPICIONS ARE NOT GOING TO BRING HIM INTO DOUBT EVEN THE OPPOSITION SOCIAL DEMOCRATS AREN'T EXPECTING BAVARIANS TO TOSS THE CSU OUT OF POWER IN THE FALL ELECTIONS THERE IS REAL HOPE THOUGH SAYS SPD SPOKESMAN JULIAN GYGER FOR AN END TO SOLO GOVERNMENT 9404180114 940418 UPJOHN SAYS EARNINGS SHOWED A SMALL RISE DURING FIRST QUARTER KALAMAZOO MICH UPJOHN CO SAID FIRSTQUARTER EARNINGS EDGED UP 1 TO 135 MILLION OR 76 CENTS A SHARE FROM 133 MILLION OR 75 CENTS A SHARE A YEAR EARLIER RESULTS IN THE 1993 QUARTER INCLUDED A GAIN OF 13 MILLION OR SEVEN CENTS A SHARE ON THE SALE OF ORTOXICOL A COUGH/COLD MEDICINE TRADEMARK AND A CHARGE OF 19 MILLION OR 11 CENTS A SHARE RELATED TO THE CUMULATIVE EFFECT OF ACCOUNTING CHANGES UPJOHN'S PROFIT IN THE LATEST FIRST QUARTER WAS TOWARD THE HIGH END OF ANALYSTS' EXPECTATIONS THE PHARMACEUTICAL COMPANY IS STRUGGLING TO OFFSET LOWER EARNINGS STEMMING FROM PATENT EXPIRATIONS LAST OCTOBER ON TWO KEY PRODUCTS UPJOHN HAS NOTHING ON THE MARKET TO MAKE UP FOR THE DECLINING SALES OF THOSE PRODUCTS FIRSTQUARTER US SALES OF XANAX AN ANTIANXIETY AGENT PLUNGED 56 TO 55 MILLION FROM A YEAR EARLIER SALES IN THE US OF HALCION A CONTROVERSIAL SLEEP MEDICATION DROPPED 20 TO 8 MILLION DESPITE THE SHARP DROP IN XANAX SALES UPJOHN SAID ITS TOTAL WORLDWIDE SALES DIPPED LESS THAN 1 TO 906 MILLION FROM 912 MILLION IN THE 1993 QUARTER US SALES OF DEPOPROVERA AN INJECTABLE CONTRACEPTIVE INTRODUCED IN THE 1993 FIRST QUARTER WERE UP 185 US SALES OF ROGAINE A TREATMENT FOR HAIR LOSS CLIMBED 56 WHILE US SALES OF MOTRIN IB A NONPRESCRIPTION INTERNAL ANALGESIC ROSE 40 UPJOHN SHARES CLOSED FRIDAY AT 26875 UP 125 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9404180113 940418 EUROPE TEST DRIVES SMART CARD' AS FARE FOR INFO HIGHWAY SEVERAL BANKS ARE EXPLORING A PLASTIC FUTURE GOVERNED BY AN ELECTRONIC PURSE' BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON ONCE YOU'RE CRUISING DOWN THE INFORMATION SUPERHIGHWAY OF THE FUTURE HOW WILL YOU PAY THE TOLL THAT'S A PROBLEM GETTING CLOSE STUDY BY MANY BANKERS AND CREDITCARD COMPANIES ESPECIALLY IN EUROPE NEVER MIND THAT NONE OF THE MUCHTOUTED NEW ELECTRONIC SERVICES VIDEOONDEMAND ONLINE ELECTRONIC GAMES INTERACTIVE HOMESHOPPING HAVE YET TO PASS THE TESTMARKETING STAGE BANKERS IN BRITAIN DENMARK BELGIUM SPAIN AND ELSEWHERE ARE ALREADY EXAMINING WHERE THEY COULD FIT INTO SUCH A WIREDUP WORLD THEIR TENTATIVE ANSWER IS THE ELECTRONIC PURSE A NEW KIND OF PLASTIC PAYMENT CARD EMBEDDED WITH A COMPUTER CHIP THAT MAY PROVE ESPECIALLY USEFUL IN THE ELECTRONIC MARKETPLACE I CAN SEE IN MY CRYSTAL BALL THAT THIS CARD COULD BE USED FOR PAYPERVIEW VIDEOGAMING AND OTHER ELECTRONIC SERVICES SAID JENS LINDBOE LARSEN VICE PRESIDENT FOR SYSTEMS DEVELOPMENT OF DANMONT A DANISH VENTURE BETWEEN BANKERS AND TELECOMS OPERATORS WHICH IS PROMOTING SUCH A CARD THE CHIP CARD IS A KEY TO THE FUTURE IN THIS AREA HE SAID IT'S NEITHER A CREDIT NOR DEBIT CARD BUT IT CARRIES A RUNNING CASH BALANCE IN ITS SILICON MEMORIES SWIPE THEM THROUGH A CARDREADER AT A SHOP BANK OR PAY TELEPHONE AND THE AMOUNT OF ANY PURCHASE IS AUTOMATICALLY DEDUCTED FROM THE CARD AND CREDITED TO THE MERCHANT NO CREDIT CHECKS OR TELEPHONE AUTHORIZATIONS ARE NEEDED THE MONEY'S EITHER IN THE CARD OR IT ISN'T WHAT HAPPENS NEXT DIFFERS WITH THE CARD DESIGNER WITH THE DANISH CARD IT'S THROWN AWAY AFTER THE INITIAL BALANCE OF 100KRONER OR ABOUT 15 IS DEPLETED UNDER A BRITISH SYSTEM MONDEX THE BALANCE IS REPLENISHED BY A VISIT OR CALL TO THE BANK OF COURSE SUCH CARDS BASED ON FRENCHDESIGNED SMART CARD TECHNOLOGY HAVE BEEN UNDER STUDY IN THE BANKING INDUSTRY FOR YEARS AS A REPLACEMENT FOR FOLDINGMONEY BUT THEY MAY HAVE STUMBLED ON A PARTICULARLY APT USE IN INTERACTIVE MULTIMEDIA SERVICES THE MOST PROMISING OF THESE SERVICES IS VIDEOONDEMAND IN WHICH VIEWERS CALL THEIR TELEPHONE OR CABLETV COMPANY TO GET INSTANT ELECTRONIC TRANSMISSION OF ANY ARCHIVED FILM OR SITCOM BUT THE COMPANIES STUDYING THIS INCLUDING IN EUROPE BRITISH TELECOMMUNICATIONS PLC AND ITALY'S STET SPA ARE PLANNING BEYOND VIDEOONDEMAND AND ENVISION AN ELECTRONIC BAZAAR OF VIDEOS MUSIC AND INFORMATION INSTANTLY ACCESSIBLE BY TV TELEPHONE OR COMPUTER CONVENTIONAL PAYMENT METHODS AREN'T IDEAL FOR THIS VIRTUAL MALL SAID TIM JONES CHIEF EXECUTIVE OF A NATIONAL WESTMINSTER BANK PLC UNIT PROMOTING THE MONDEX CARD SURE HE SAID PEOPLE CAN SUBSCRIBE TO INDIVIDUAL ELECTRONIC SERVICES AND GET BILLS IN THE MAIL BUT THAT WON'T HANDLE THE ANTICIPATED MILLIONS OF FLEETING TRANSACTIONS SUCH AS ORDERING A VIDEO HERE OR CHECKING A STOCK QUOTE THERE ALTHOUGH INDIVIDUALS CAN QUOTE A CREDITOR DEBITCARD NUMBER IT WILL COST THE MERCHANT AND BANK TIME AND MONEY TO VERIFY CREDITWORTHINESS AND PROCESS EACH TRANSACTION WORSE CREDIT CARDS GENERALLY AREN'T AVAILABLE TO ONE OF THE BIGGEST POTENTIAL GROUPS OF ELECTRONIC CONSUMERS BORED TEENAGERS WHO JUST WANT TO PLAY A FEW INTERACTIVE VIDEO GAMES ENTER THE ELECTRONIC PURSE AND OF ALL THE PROTOTYPES BEARING THAT LABEL THE NAT WESTMONDEX SYSTEM FITS IT BEST LIKE A PURSE MONDEX'S RECORDED BALANCE RISES OR FALLS AS MONEY IS STUFFED INTO IT OR TAKEN OUT TO INCREASE THE BALANCE THE USER INSERTS THE CARD INTO BANKTELLER MACHINES PAY PHONES OR HOME TELEPHONES EQUIPPED WITH SPECIAL CARDREADERS AND ELECTRONICALLY WITHDRAWS FUNDS FROM HIS BANK ACCOUNT TO SPEND THE MONEY ON THE ELECTRONIC HIGHWAY THE USER'S CARDREADING TELEPHONE WOULD ELECTRONICALLY DEBIT THE COST OF EACH SERVICE FROM THE CARD BALANCE AT THE SAME TIME THE SERVICECOMPANY'S COMPUTER WOULD ELECTRONICALLY CREDIT ITS OWN MONDEX ACCOUNT TRANSACTION COMPLETE NO CREDIT CHECKS NO BANK CLEARING OF COURSE SUCH CARDS MAY BE AS MUCH A PIPEDREAM AS INDUSTRY CRITICS CLAIM COMMERCIAL MULTIMEDIA SERVICES THEMSELVES WILL PROVE TO BE THE MONDEX SYSTEM WILL BE TESTMARKETED NEXT YEAR IN SWINDON ENGLAND IN A BROAD RANGE OF USES NOT JUST ELECTRONIC SERVICES TO HELP BRITISH TELECOMMUNICATIONS HAS DESIGNED MONDEX CARDREADING TELEPHONES AND HITACHI LTD IS SUPPLYING ONCARD CHIPS 9404180112 940418 EUROPA CRUISES TO POST A FIRSTQUARTER PROFIT REVENUE TO SET RECORD MADEIRA BEACH FLA EUROPA CRUISES CORP EXPECTS TO REPORT FIRSTQUARTER EARNINGS OF THREE CENTS TO FOUR CENTS A SHARE ON RECORD REVENUE CHARLES H REDDIEN CHAIRMAN AND CHIEF EXECUTIVE SAID REVENUE AT THE DAYCRUISE CONCERN WILL TOTAL ABOUT 48 MILLION MR REDDIEN SAID IN AN INTERVIEW IN THE 1993 FIRST QUARTER EUROPA POSTED A LOSS OF 146000 OR ONE CENT A SHARE ON REVENUE OF 32 MILLION THE LATEST QUARTER REPRESENTS A TURNAROUND FOR EUROPA WHICH RECENTLY TERMINATED AN UNPROFITABLE CHARTER AGREEMENT AND HAS STRUGGLED THROUGH A COSTLY PROXY BATTLE THE COMPANY OWNS AND OPERATES THREE ENTERTAINMENT SHIPS AND ALSO HAS A SUBSIDIARY CASINO WORLD INC THAT IS DEVELOPING DOCKSIDE CASINOS FOR ALL OF 1993 EUROPA EXPECTS TO REPORT A LOSS OF 43 MILLION OR 33 CENTS A SHARE ON REVENUE OF 124 MILLION THE COMPANY PLANS TO RELEASE FIGURES FOR 1993 NEXT WEEK MR REDDIEN SAID SEVERAL EVENTS LATE LAST YEAR INCLUDING NEGOTIATIONS INVOLVING LAND DEVELOPMENT AND THE PREVIOUSLY ANNOUNCED SPINOFF OF CASINO WORLD LED EUROPA TO SEEK AN EXTENSION FOR REPORTING 1993 RESULTS IN 1992 EUROPA POSTED A LOSS OF 12 MILLION OR 10 CENTS A SHARE ON REVENUE OF 142 MILLION MR REDDIEN ATTRIBUTED THE EXPECTED 1993 LOSS TO 45 MILLION IN NONRECURRING CHARGES THE LARGEST OF WHICH RELATED TO THE TERMINATION OF AN UNPROFITABLE CHARTER AGREEMENT ON A VESSEL CALLED THE EUROPAJET IN ADDITION TO ITS EXPENSIVE CHARTER THE EUROPAJET PROVED TOO LARGE FOR EUROPA TO RUN EFFICIENTLY IN ITS PORTS HE SAID 9404180111 940418 BUSINESS BRIEF BANK OF MONTREAL UNIT AGREES TO PURCHASE SUBURBAN BANCORP BANK OF MONTREAL SAID ITS HARRIS BANKCORP SUBSIDIARY IN CHICAGO REACHED A DEFINITIVE AGREEMENT TO ACQUIRE SUBURBAN BANCORP INC IN A STOCK TRANSACTION VALUED AT 3415 MILLION CANADIAN DOLLARS US2475 MILLION THE MOVE REFLECTS BANK OF MONTREAL'S STRATEGY TO TRIPLE HARRIS'S SIZE BY THE END OF THE DECADE THE ACQUISITION OF SUBURBAN BASED IN PALATINE ILL ADDS 30 RETAIL BANK BRANCHES TO HARRIS'S 40 OUTLETS BANK OF MONTREAL HAS ASSETS OF 116 BILLION CANADIAN DOLLARS UNDER THE AGREEMENT EACH OF SUBURBAN BANCORP'S 337 MILLION COMMON SHARES WILL BE EXCHANGED FOR 39352 SHARES OF BANK OF MONTREAL COMMON STOCK SUBJECT TO ADJUSTMENT THE CANADIAN DOLLAR VALUE OF THE TRANSACTION WOULD BE 10133 A SHARE US7343 SUBURBAN BANCORP HAD ASSETS OF 135 BILLION AT MARCH 31 HARRIS HAD 135 BILLION IN ASSETS AT DEC 31 1993 THE AGREEMENT IS SUBJECT TO CERTAIN CONDITIONS INCLUDING APPROVAL BY REGULATORS AND SHAREHOLDERS OF SUBURBAN BANCORP MEMBERS OF THE GERALD F FITZGERALD FAMILY WHO OWN SHARES REPRESENTING MORE THAN A MAJORITY OF THE VOTING POWER OF SUBURBAN BANCORP HAVE AGREED TO VOTE THEIR SHARES IN FAVOR OF THE TRANSACTION THE COMPANY SAID IN NASDAQ STOCK MARKET TRADING FRIDAY SUBURBAN BANCORP'S SHARES CLOSED AT 4950 UP 1 9404180110 940418 BRITISH RETAIL PRICE INDEX RISES LONDON BRITAIN'S RETAIL PRICE INDEX ROSE 03 IN MARCH AND WAS UP 23 FROM THE YEAR BEFORE THE CENTRAL STATISTICAL OFFICE SAID THE UNDERLYING INDEX WHICH EXCLUDES MORTGAGE INTEREST PAYMENTS ROSE 03 ON THE MONTH AND WAS UP 24 ON THE YEAR THE MARCH RESULT IS BELOW EXPECTATIONS FOR A YEARONYEAR RATE OF INFLATION OF 24 AND AN UNDERLYING RATE OF 25 THE ANNUAL UK INFLATION RATE IS ALSO BELOW THE EUROPEAN UNION AVERAGE WHICH STOOD AT 33 IN FEBRUARY THE CSO SAID BETWEEN FEBRUARY AND MARCH THERE WERE FURTHER INCREASES IN THE PRICES OF CLOTHING FOOD AND HOUSEHOLD GOODS AFTER DISCOUNTING IN THE JANUARY SALES THE CSO SAID THE YEARONYEAR RATE OF UNDERLYING INFLATION WAS THE LOWEST SINCE THE SERIES BEGAN IN 1975 9404180109 940418 TELEVISION CABLE CONCERNS EXPLORE EXPORT OF PROGRAMS BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL CANNES FRANCE MANY OF THE BIGGEST NAMES IN US CABLE TELEVISION HAVE GATHERED AT THIS RESORT TO SELL THEIR PROGRAMMING BUT THEY KNOW IT WON'T BE A PICNIC THE CABLE EXECUTIVES ARE HERE FOR THE MARCHE INTERNATIONAL DES PROGRAMMES DE TELEVISION OR MIPTV ONE OF SEVERAL MEETINGS EACH YEAR AT WHICH BUYERS AND SELLERS OF TELEVISION SHOWS MEET TO DO DEALS WORLDWIDE US COMPANIES ALREADY DOMINATE THE SALE OF INDIVIDUAL SHOWS TO LOCAL BROADCASTERS IN EUROPE NOW RAPID CHANGES IN TECHNOLOGY THE ARRIVAL OF CABLE SYSTEMS AND DIRECT SATELLITETOHOME BROADCASTING HAVE LED MANY US CABLE PROGRAMMERS TO EXPAND THEIR SIGHTS TO THE EXPORT OF ENTIRE NETWORKS VIACOM INC WOULD LIKE TO LAUNCH ITS CHILDREN'S NETWORK NICKELODEON IN PARTS OF EUROPE AND ASIA IT ALREADY AIRS IN BRITAIN USA NETWORKS WHICH IS OWNED BY PARAMOUNT COMMUNICATIONS INC AND MATSUSHITA ELECTRIC INDUSTRIAL CO WANTS TO INTRODUCE ITS SCIFI CHANNEL IN EUROPE BY THE END OF THE YEAR AND DISCOVERY COMMUNICATIONS INC'S DISCOVERY CHANNEL WHICH HAS AIRED IN PARTS OF EUROPE SINCE 1989 WAS INTRODUCED IN ASIA AND LATIN AMERICA AT THE BEGINNING OF THE YEAR IT PLANS TO LAUNCH IN THE MIDDLE EAST NEXT MONTH SEVERAL SUCCESS STORIES ARE SPURRING THE PROGRAMMERS ON TURNER BROADCASTING SYSTEM INC'S CNN INTERNATIONAL IS CARRIED EXTENSIVELY WORLDWIDE AND VIACOM'S MTV WHOSE MUSIC VIDEOS EASILY TRANSCEND BORDERS IS SEEN IN EUROPE LATIN AMERICA AND ASIA BUT WHILE MANY US PLAYERS ARE EAGER TO GET INTO THE BUSINESS NOT EVERYONE IS EAGER TO SEE THEM SUCCEED FEARING THAT AN ONSLAUGHT OF NEW US CHANNELS WILL MAKE IT HARDER FOR LOCAL PROGRAMMING TO SURVIVE THE EUROPEAN UNION HAS RECOMMENDED THAT MEMBER COUNTRIES IMPOSE PROGRAM QUOTAS UNDER THE QUOTAS EUROPEANDISTRIBUTED NETWORKS WOULD CONSIST OF AT LEAST 50 EUROPEANPRODUCED PROGRAMMING WHERE APPLICABLE NEWS FOR EXAMPLE IS EXCLUDED PACO RODRIGUEZ MANAGING DIRECTOR OF MADRIDBASED INDEPENDENT PRODUCER MM MULTIMEDIA SAYS HE FAVORS THE QUOTAS WHICH HE SAYS ARE RESPONSIBLE FOR A DEAL HE HOPES TO CONCLUDE HERE TO SELL AN ANIMATED SHOW TO NICKELODEON'S UK CHANNEL WITHOUT LIMITS HE SAYS US NETWORKS EXPANDING ABROAD WOULD SIMPLY USE ALLUS PROGRAMMING TO KEEP COSTS DOWN MANY US PROGRAMMERS DISAGREE QUOTAS ONE EXECUTIVE SAYS WILL ENCOURAGE A LOT OF REALLY BAD PROGRAMMING BECAUSE EUROPE DOESN'T HAVE ENOUGH LOCAL PRODUCTION TO SUSTAIN ALL THE NEW SERVICES IT'S BAD BUSINESS JEFFREY DUNN EXECUTIVE VICE PRESIDENT OF NICKELODEON SAYS THE QUOTAS MAY ALSO DEPRIVE EUROPEAN VIEWERS OF QUALITY SHOWS BY MAKING IT UNECONOMICAL TO DEVELOP REGIONAL SERVICES MANY NEWCOMERS ALREADY USE LOCALLY PRODUCED SHOWS ANYWAY ABOUT 50 OF NICKELODEON'S UK SERVICE IS LOCALLY PRODUCED BECAUSE IT WANTED TO BE AS BRITISH AS POSSIBLE TO APPEAL TO BRITISH KIDS SAYS JON MILLER THE SERVICE'S CHIEF EXECUTIVE DISCOVERY BUYS EUROPEAN PRODUCTIONS BOTH BECAUSE IT CAN'T FIND ENOUGH U S PROGRAMMING AND BECAUSE IT DOESN'T OWN EUROPEAN RIGHTS TO ALL THE SHOWS IT AIRS ON ITS US CHANNEL TURNER'S TNT & CARTOON NETWORK WHICH STARTED IN EUROPE IN SEPTEMBER HAS BORNE THE BRUNT OF EUROPEAN CRITICISM BECAUSE ITS PROGRAMMING LINEUP DRAWN FROM THE TURNER LIBRARIES IS ALMOST ENTIRELY AMERICAN FROM THE FLINTSTONES TO CLASSIC HOLLYWOOD MOVIES THE NETWORK HAS BEEN THROWN OFF SOME EUROPEAN CABLE SYSTEMS FOR NOT MEETING THE QUOTAS WHILE IT IS FIGHTING THE BANS LEGALLY TURNER HAS ALSO HOOKED UP WITH SOME INTERNATIONAL PARTNERS TO COPRODUCE SOME OF ITS SHOWS SOME OF THE PARTNERS MAKE STRANGE BEDFELLOWS THOUGH TURNER ANNOUNCED YESTERDAY THAT THE FRENCH PAYTV COMPANY CANAL PLUS HAS COME IN AS A PARTNER ON TURNER'S SIXHOUR NATIVE AMERICAN HISTORY DOCUMENTARY PROJECT PROVIDING BETWEEN 25 AND 35 OF THE PROJECT'S BUDGET TURNER EXECUTIVES ACKNOWLEDGE THAT THERE IS LITTLE THE FRENCH CAN OFFER ON THE CONTENT OF THE NATIVE AMERICAN PROGRAMS THOUGH THEY SAY FUTURE COPRODUCTIONS WILL INCLUDE MATERIAL SHOT IN FRANCE TURNER'S EXPERIENCE HAS MADE A NUMBER OF COMPETITORS WARY ABOUT GOING IN WITHOUT HOOKING UP WITH LOCAL PARTNERS ONE COMPANY THAT HAS DONE SO SUCCESSFULLY IS WORLDVISION ENTERPRISES A DIVISION OF BLOCKBUSTER ENTERTAINMENT INC A YEAR AGO THE COMPANY WHICH HAS A LIBRARY OF 12000 HOURS OF PROGRAMMING JOINED WITH MEXICAN PARTNER MULTIVISION SA TO LAUNCH TELEUNO A CABLE AND SATELLITEDELIVERED SERVICE NOW SEEN IN TWO MILLION LATIN AMERICAN HOMES THE NETWORK CARRIES SUCH WORLDVISION STAPLES AS THE STREETS OF SAN FRANCISCO AND LITTLE HOUSE ON THE PRAIRIE THE PARTNERS WHO ARE JUST STARTING TO GET ADVERTISING REVENUE FROM THE VENTURE ARE NOW CONSIDERING OFFERING THE SERVICE TO SPAIN QUOTAS MAY TURN OUT TO BE THE LEAST OF THE NETWORKS' WORRIES AN EVEN BIGGER HURDLE SOME EXECUTIVES SAY IS OVERCOMING CULTURAL DIFFERENCES MANY EUROPEAN VIEWERS STILL HAVEN'T ACQUIRED THE US HABIT OF TURNING ON THE TV SET FIRST THING IN THE MORNING IN NORWAY CABLE SUBSCRIBERS VOTE EACH YEAR ON WHICH CHANNELS THEY WANT SO A NETWORK CAN FIND ITSELF BOUNCED OVERNIGHT AND IN COUNTRIES WHERE HOMES HAVE ONLY ONE TV SET NARROWLY TARGETED CHANNELS THAT DON'T APPEAL TO THE ENTIRE FAMILY ARE A HARD SELL IN ASIA WHERE MANY CABLE NETWORKS ARE IN A FRENZY TO FIND A WAY IN THE HURDLES COULD BE EVEN GREATER EXECUTIVES SAY BECAUSE OF THE LANGUAGE BARRIERS THE LACK OF A DEVELOPED ADVERTISING MARKET AND A FRAGMENTED DISTRIBUTION SERVICE COMPANIES WANT TO GET THERE FIRST BECAUSE OF THE VAST NUMBER OF VIEWERS BUT THEY MUST BE SURE THEY FIGURE OUT HOW NOT TO GO BROKE SAYS NICKELODEON'S MR DUNN 9404180108 940418 WHO'S NEWS OCEANEERING INTERNATIONAL INC OCEANEERING INTERNATIONAL INC HOUSTON ROBERT P MINGOIA 42 YEARS OLD WAS NAMED TREASURER OF THIS OIL AND GAS TECHNOLOGY COMPANY SUCCEEDING T JAY COLLINS 47 WHO REMAINS CHIEF FINANCIAL OFFICER AND SENIOR VICE PRESIDENT FINANCE MR MINGOIA FORMERLY ASSISTANT TREASURER AND MANAGER FINANCIAL SERVICES WILL REMAIN MANAGER FINANCIAL SERVICES 9404180107 940418 WHO'S NEWS PWA'S EYTON RESIGNS AS PRESIDENT AND CHIEF CALGARY ALBERTA PWA CORP SAID ITS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE RHYS EYTON RETIRED FROM ALL EXECUTIVE POSITIONS WITH PWA IT SAID MR EYTON 58 YEARS OLD WILL REMAIN CHAIRMAN OF THE AIRLINE HOLDING COMPANY HE WAS SUCCEEDED AS PRESIDENT AND CHIEF EXECUTIVE FRIDAY BY KEVIN JENKINS 37 YEARS OLD WHO HAS BEEN PRESIDENT OF PWA'S OPERATING SUBSIDIARY CANADIAN AIRLINES INTERNATIONAL FOR THE PAST THREE YEARS PWA SAID MR JENKINS WAS ALSO APPOINTED CHIEF EXECUTIVE OF CANADIAN AND WILL CONTINUE AS THE AIRLINE'S PRESIDENT PWA SAID MR EYTON ANNOUNCED HIS INTENTION TO RETIRE A YEAR AGO HE CHOSE TO DO SO NOW FOR PERSONAL REASONS AND BECAUSE THE COMPANY IS CLOSE TO COMPLETING AN EQUITY TRANSACTION WITH AMR CORP DALLAS THAT HE CONSIDERED VITAL TO CANADIAN'S LONGTERM SURVIVAL A PWA SPOKESWOMAN SAID SHE ADDED THAT SHE EXPECTS THE TRANSACTION TO CLOSE WITHIN TWO WEEKS AMR HAS AGREED TO BUY A ONETHIRD INTEREST IN THE CANADIAN CARRIER FOR 246 MILLION CANADIAN DOLLARS US1775 MILLION PROVIDED THAT THE AIRLINE TRANSFERS ITS DATAPROCESSING BUSINESS TO AMR'S NETWORK 9404180106 940418 WHO'S NEWS PHYSICIANS HEALTH SERVICES INC PHYSICIANS HEALTH SERVICES INC TRUMBULL CONN ROBERT L NATT WAS NAMED TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT CHIEF OPERATING OFFICER MR NATT 45 YEARS OLD WILL BE RESPONSIBLE FOR MANAGING THE MANAGEDCARE COMPANY'S OPERATIONAL AND STRATEGIC GROWTH PLANS HE WAS PREVIOUSLY SENIOR VICE PRESIDENT AT THE COMPANY 9404180105 940418 FAMILY LEAVE LAW SHOULD BE BROADER STUDY GROUP SAYS BY ROCHELLE SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON POLICY EXPERTS ARE EXPLORING WAYS TO EXPAND THE FAMILY AND MEDICAL LEAVE ACT WHICH TOOK EFFECT JUST LAST AUGUST THEIR IDEA LET WORKERS TAKE AS MUCH AS SIX MONTHS OFF WITH PARTIAL PAY TO CARE FOR NEWBORN CHILDREN OR SICK FAMILY MEMBERS FORMER LABOR SECRETARY RAY MARSHALL A MEMBER OF A TASK FORCE THAT LAST WEEK CALLED FOR THE EXPANSION SAID IN AN INTERVIEW THAT WORKERS SHOULD RECEIVE AT LEAST HALF THEIR PAY WHILE ON LEAVE AND PERHAPS AS MUCH AS 70 THE WAGE REPLACEMENT IS NECESSARY SO WORKERS CAN AFFORD TO TAKE THE TIME OFF THE TASK FORCE BELIEVES THE NEW LAW ALLOWS WORKERS IN COMPANIES WITH MORE THAN 50 EMPLOYEES TO TAKE UP TO 12 WEEKS UNPAID FAMILY LEAVE THE TASK FORCE ASSEMBLED BY CARNEGIE CORP OF NEW YORK CONCLUDED IN A STUDY ISSUED LAST WEEK THAT THE ACT SHOULD BE EXPANDED TO COVER ALL COMPANIES THAT LEAVE SHOULD LAST FOUR TO SIX MONTHS AND THAT THERE SHOULD BE PARTIAL WAGE REPLACEMENT MR MARSHALL SAID THE EXPANSION COULD BE FINANCED THROUGH THE UNEMPLOYMENTCOMPENSATION OR PENSION SYSTEMS AN ARRANGEMENT COULD BE MODELED AFTER SOCIAL SECURITY HE SAID WHERE WORKERS WOULD CONTRIBUTE TO A FUND AND THEN HAVE THE OPTION OF USING THE MONEY FOR FAMILY LEAVE OR ROLLING IT OVER INTO THEIR PENSION FUND AN ALTERNATIVE WOULD BE TO REQUIRE EMPLOYERS TO OFFER PARTIALLY PAID FAMILY LEAVE AS A STANDARD BENEFIT OR CONTRIBUTE TO A SPECIAL FUND THERE'S NO ONE BEST WAY TO DO IT HE SAID WE WOULD WANT TO ARRANGE IT SO IT COULD BE FLEXIBLE MR MARSHALL SAID UNEMPLOYMENTCOMPENSATION FUNDS HAVE BEEN SUCCESSFULLY USED IN OTHER COUNTRIES FOR PARTIAL WAGE REPLACEMENT GERMANY HAS USED THE FUNDS TO HELP REDUCE THE NUMBER OF LAYOFFS INSTEAD OF TEMPORARILY DISMISSING WORKERS MANY GERMAN COMPANIES SHORTEN THEIR EMPLOYEES' HOURS AND THEN SUBSIDIZE THEIR WAGES WITH MONEY FROM UNEMPLOYMENTCOMPENSATION FUNDS HE SAID ALTHOUGH THE PROPOSED EXPANSION WOULD PROVE CONTROVERSIAL MR MARSHALL SAID IT WOULD BENEFIT EMPLOYERS AS WELL AS WORKERS MEDICAL AND FAMILY LEAVE COULD GREATLY IMPROVE PRODUCTIVITY 9404180104 940418 WHO'S NEWS FEDERAL RESERVE BANK OF NEW YORK FEDERAL RESERVE BANK OF NEW YORK NEW YORK FREDERIC S MISHKIN 43 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND DIRECTOR OF RESEARCH EFFECTIVE SEPTEMBER HE WILL SUCCEED RICHARD DAVIS 61 WHO IS RETIRING MR MISHKIN IS A PROFESSOR OF ECONOMICS AT COLUMBIA UNIVERSITY'S GRADUATE SCHOOL OF BUSINESS 9404180103 940418 SMALL INVESTORS CONTINUE HEAVY BUYING ON MARGIN DESPITE TURMOIL IN MARKETS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SMALL INVESTORS SHRUGGING OFF THIS YEAR'S MARKET MAYHEM CONTINUE TO BORROW PILES OF MONEY TO BUY STOCKS AND BONDS MARGIN LOANS OUTSTANDING TO ALL INVESTORS SOARED TO A RECORD 62 BILLION AT THE END OF FEBRUARY THE NEW YORK STOCK EXCHANGE SAYS THAT'S UP 3 SINCE YEAR END AND UP 40 FROM A YEAR EARLIER SINCE FEBRUARY MARGINLOAN ACTIVITY HASN'T SLACKENED BROKERAGE FIRM EXECUTIVES SAY WHY THE RATES STILL ARE DIRTCHEAP AT LEAST COMPARED WITH CREDIT CARDS AND OTHER CONSUMER LOANS WITH A MARGIN LOAN INVESTORS BORROW CASH AGAINST THE VALUE OF STOCKS OR BONDS IN THEIR PORTFOLIO TYPICALLY TO BUY MORE SECURITIES INDIVIDUALS CAN BORROW AS MUCH AS 50 OF THE VALUE OF THEIR PORTFOLIO OF STOCKS HELD AT THEIR BROKERAGE FIRM AND AS MUCH AS 90 OF THEIR BOND PORTFOLIO DESPITE THIS YEAR'S MARKET BUMPS THE DOW JONES INDUSTRIAL AVERAGE HAS SLIPPED 8 SINCE JAN 31 WHILE THE 30YEAR TREASURY BOND'S YIELD HAS SURGED TO 728 FROM 642 AT YEAR END MANY INVESTORS CONTINUE TO OPT FOR MARGIN LOANS ATTRACTED BY LOW INTEREST RATES FOR EVEN THE SMALLEST STOCKMARKET PLAYERS MOST INVESTORS USE MARGIN LOANS TO BUY STOCKS AND OTHER SECURITIES BUT MORE PEOPLE ARE USING MARGIN LOANS TO AMONG OTHER THINGS PAY OFF THEIR HIGHCOST CREDIT CARDS AND OTHER DEBT DESPITE THE DROP IN INTEREST RATES IN THE PAST FEW YEARS MANY CREDIT CARDS STILL CHARGE CUSTOMERS SKYHIGH RATES ABOVE 15 BUT ALONG WITH LOWER MARGIN RATES COMES RISK IN STEEP MARKET PLUNGES INVESTORS CAN BE HIT WITH MARGIN CALLS WHICH REQUIRE THEM TO PUT UP MORE CASH IMMEDIATELY TO OFFSET THE DECLINE IN THE VALUE OF THEIR STOCK PORTFOLIOS WHEN AN INVESTOR CAN'T PUT UP ADDITIONAL CASH THE BROKERAGE FIRM TYPICALLY SELLS PART OR ALL OF THE INVESTOR'S PORTFOLIO TO MEET THE MARGIN CALL SO FAR BROKERAGE FIRMS SAY THIS YEAR'S MARKET LOSSES HAVEN'T TRIGGERED A HEAVY WAVE OF MARGIN CALLS TO SMALL INVESTORS THE BULK OF THE MARGINCALL ACTIVITY HAS BEEN AMONG INSTITUTIONAL HEDGE FUNDS SUCH AS ASKIN CAPITAL MANAGEMENT LP WHICH WAS FORCED TO LIQUIDATE RECENTLY AMID THE PLUNGE IN MORTGAGEBACKED DERIVATIVE SECURITIES OTHER CASUALTIES OF THE MORTGAGE MARKET INCLUDE WASHINGTON GROUP LTD AN INVESTMENT FUND THAT COULDN'T QUICKLY MEET A 3 MILLION MARGIN CALL BY BEAR STEARNS COS THIS MONTH BEAR STEARNS LIQUIDATED WASHINGTON'S PORTFOLIO AND THE MATTER IS BEING THRASHED OUT IN A NEW YORK FEDERAL COURT THERE MIGHT BE A COUPLE OF OTHER ASKINTYPE HEDGE FUNDS OUT THERE BUT I DON'T GET THE SENSE THAT IT'S REALLY BAD SAYS ALISON DEANS AN ANALYST AT SMITH BARNEY SHEARSON INC MERRILL LYNCH CONSIDERED A GAUGE OF SMALLINVESTOR ACTIVITY SAYS IT HAS MADE MARGIN CALLS TO JUST 101 INVESTOR ACCOUNTS IN THE PAST FIVE WEEKS THAT'S UP FROM THE FIVEWEEK PERIOD ENDING DEC 31 1993 BUT A TINY FRACTION OF ITS 15 MILLION BROKERAGE ACCOUNTS ELIGIBLE FOR MARGIN LOANS IS IT HIGHER YES IS IT STATISTICALLY MEANINGFUL ABSOLUTELY NOT SAYS NASSOS MICHAS CHAIRMAN OF MERRILL'S PRIVATEBANKING GROUP AT THIS STAGE WE HAVE ABSOLUTELY NO PHENOMENON OF LIQUIDATION OF MARGIN OR CONCERN ABOUT COLLATERAL OR LOST MONEY IN ANY AGGREGATE SENSE MR MICHAS SAYS MERRILL HAS A RECORD 58 BILLION OF MARGIN LOANS OUTSTANDING IN THE US UP ABOUT 2 FROM YEAR END AND 23 HIGHER THAN A YEAR AGO BEAR STEARNS WALL STREET'S BIGGEST MARGIN LENDER AND ONE MOST VULNERABLE TO INSTITUTIONALINVESTOR MARGIN CALLS HAD A RECORD 15 BILLION IN MARGIN DEBT OUTSTANDING AS OF MARCH 25 UP 8 FROM YEAR END AND MORE THAN DOUBLE THE 71 BILLION A YEAR EARLIER BEAR STEARNS REFUSES TO DISCLOSE DATA ON ITS MARGINCALL ACTIVITY MUCH OF WHICH IS GENERATED BY ITS BIG TRADECLEARING OPERATIONS SAYS A SPOKESWOMAN THERE'S NO TROUBLE THERE BUT MARGIN CALLS MAY HAVE TRIGGERED SOME RECENT LOSSES AT BEAR STEARNS AND OTHER WALL STREET FIRMS SOME ANALYSTS SAY LAST WEEK BEAR STEARNS DISCLOSED THAT RECENT ZIGZAGS IN THE STOCK AND BOND MARKETS HAVE IMPACTED THE FIRM RESULTING IN MODERATE MARKTOMARKET LOSSES BEAR STEARNS DECLINED TO ELABORATE BUT TRADERS SAY THE FIRM HAD LOSSES OF MORE THAN 25 MILLION SOME ANALYSTS SAY THE BULK OF THE LOSSES WEREN'T FROM TRADING THE FIRM'S OWN BOND AND STOCK INVENTORY RATHER SAYS SMITH BARNEY'S MS DEANS SOME OF BEAR STEARNS'S LOSSES PROBABLY STEMMED FROM SELLING SECURITIES THAT THEY WOUND UP INHERITING FROM MARGIN CALLS SOME OF THE RECENT MARKET CARNAGE WON'T AFFECT MARGIN CALLS MUCH HOWEVER THE SHARP DROP IN SECURITIES OF SOCALLED EMERGING MARKETS FOR INSTANCE PROBABLY DIDN'T PROMPT A WAVE OF MARGIN CALLS ANALYSTS SAY THAT'S BECAUSE RATHER THAN BORROWING TO BUY INDIVIDUAL STOCKS MANY INVESTORS BOUGHT THESE INVESTMENTS THROUGH MUTUAL FUNDS WHICH HAVE STRICT LIMITATIONS ON BORROWING 9404180102 940418 COMMODITIES CBOT PLANS TO WITHDRAW FROM GLOBEX AGREES TO DEVELOP TRADING SYSTEM WITH BLOOMBERG BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL THE CHICAGO BOARD OF TRADE PLANS TO WITHDRAW FROM GLOBEX THE AROUNDTHEWORLD ELECTRONIC FUTURESTRADING NETWORK IT HELPED LAUNCH TWO YEARS AGO AND DEVELOP AN ALTERNATIVE AFTERHOURS TRADING SYSTEM IN COOPERATION WITH BLOOMBERG LP'S BLOOMBERG FINANCIAL MARKETS REJECTING A PROPOSED RESTRUCTURING OF GLOBEX CBOT SAID IT WILL FORGE AHEAD WITH A PREVIOUSLY ANNOUNCED PLAN TO DEVELOP A LOCAL ELECTRONICTRADING SYSTEM CALLED PROJECT A IN ADDITION EXCHANGE CHAIRMAN PATRICK ARBOR ANNOUNCED AN AGREEMENT IN PRINCIPLE THAT WOULD ALLOW USERS OF BLOOMBERG'S 37000 TERMINALS TO TRADE CBOTLISTED FUTURES CONTRACTS DURING HOURS WHEN THE EXCHANGE FLOOR IS CLOSED CBOT THE WORLD'S LARGEST FUTURES EXCHANGE HAS CLASHED REPEATEDLY WITH ITS TWO MAIN PARTNERS IN GLOBEX REUTERS PLC AND THE CHICAGO MERCANTILE EXCHANGE AND DIDN'T PARTICIPATE IN MEETINGS WITH THEM TO DISCUSS THE PROPOSED RESTRUCTURING THUS ITS WITHDRAWAL EXPECTED BY THE END OF THE MONTH CAME AS LITTLE SURPRISE BUT THE AGREEMENT TO EXTEND THE EXCHANGE'S CURRENT TIES WITH BLOOMBERG TO COVER FUTURESCONTRACTS TRADING SETS UP A NEW SOURCE OF CONFLICT IN THE CONTINUING BATTLE BETWEEN BLOOMBERG AND LONDONBASED REUTERS WHICH ARE NOW SLUGGING IT OUT OVER SALES OF THEIR NEWS DATA AND TRADING TERMINALS ACROSS NORTH AMERICA FOR THE TIME BEING MR ARBOR SAID ONLY CBOT CONTRACTS WILL TRADE ON THE PROJECT A SYSTEM WHICH HE HOPES TO BEGIN IN NEW YORK AND CHICAGO THIS SUMMER BUT CBOT OFFICIALS SAID THEY COULD ADD PRODUCTS LISTED ON OTHER EXCHANGES LATER AND DIDN'T RULE OUT DEVELOPING THE LOCAL NETWORK INTO A COMPETITOR TO GLOBEX WE DON'T LOOK AT THIS AS SOMETHING WHICH IS DESIGNED TO REPLACE GLOBEX BUT MAYBE AS A SUPPLEMENTARY SERVICE SAID MICHAEL BLOOMBERG PRESIDENT OF BLOOMBERG FINANCIAL IT'S STILL A LITTLE EARLY TO TELL HOW THE PROJECT WILL EVOLVE BUT WE FEEL THAT IT CERTAINLY GIVES PEOPLE MORE OF A REASON TO BUY OUR TERMINALS MR BLOOMBERG SAID HE WON'T CHARGE USERS OF HIS TERMINALS FOR ACCESS TO THE CBOT TRADING THE EXCHANGE ITSELF SAYS IT WILL LEVY A TRANSACTION FEE ROSALYN WILTON MANAGING DIRECTOR OF TRANSACTIONAL PRODUCTS FOR REUTERS SAID SHE BELIEVES IT IS UNLIKELY THAT THERE WILL BE ROOM FOR MORE THAN ONE GLOBAL FUTURESTRADING SYSTEM AND NOTES THAT GLOBEX HAS A SIGNIFICANT HEAD START ON ANY COMPETITOR JAMES DOUGHERTY AN ANALYST WITH DEAN WITTER REYNOLDS INC IN NEW YORK DESCRIBED THE IDEA OF LAUNCHING A RIVAL SERVICE TO GLOBEX AS HUMOROUS IN VIEW OF THE DIFFICULTY GLOBEX HAS HAD IN ATTRACTING ENOUGH TRADING TO COVER OPERATING EXPENSES BLOOMBERG MAY HAVE AS MUCH INTEREST IN TWEAKING REUTERS'S NOSE AS IT DOES IN THE VENTURE ITSELF HE ADDED THE PROPOSALS BY THE CHICAGO MERCANTILE EXCHANGE AND REUTERS TO RESTRUCTURE GLOBEX ARE AIMED AT BOOSTING THE SYSTEM'S DISAPPOINTINGLY LOW TRADING VOLUMES AND ENCOURAGING OTHER FUTURES EXCHANGES TO JOIN THE SYSTEM TRADING HAS REMAINED WELL BELOW 50000 FUTURES CONTRACTS DAILY WITHOUT A SATISFACTORY RESTRUCTURING ARRANGEMENT IN PLACE REUTERS WAS PREPARED TO EXERCISE ITS OPTION TO PULL THE PLUG ON GLOBEX THIS MONTH THE RESTRUCTURING PLAN DEVELOPED BY JOHN SANDNER CHAIRMAN OF BOTH THE CHICAGO MERCANTILE EXCHANGE AND OF GLOBEX WOULD GIVE NEW MEMBERS AN EQUAL VOICE IN GOVERNING THE GLOBEX PARTNERSHIP SO FAR ONLY ONE EXCHANGE BESIDES THE CME AND THE CBOT FRANCE'S MARCHE A TERME INTERNATIONAL DE FRANCE HAS JOINED THE GLOBEX SYSTEM MR SANDNER SAID GLOBEX IS TALKING WITH FUTURES EXCHANGES IN LONDON AND FRANKFURT ABOUT JOINING THE RESTRUCTURED GLOBEX HE ADDED HE IS OPTIMISTIC THAT ONE OR BOTH OF THESE EXCHANGES WILL DECIDE TO JOIN GLOBEX AND THAT SOME POSITIVE MOVEMENTS COULD BE SEEN IN 30 TO 45 DAYS CBOT OFFICIALS SAID CONDITIONS LAID DOWN BY THE CME AND REUTERS FOR PARTICIPATING IN TALKS ABOUT THE RESTRUCTURING WERE UNACCEPTABLE IN THE END THE CME AND REUTERS DEMANDED TOO GREAT A PRICE FOR CBOT PARTICIPATION MR ARBOR SAID IN A LETTER TO MEMBERS OF THE EXCHANGE WHEN SOME OF CHICAGO'S LARGEST FUTURES DEALERS FAILED IN A LASTMINUTE BID TO HEAL THE RIFT BETWEEN THE CBOT AND GLOBEX MR ARBOR AND MR BLOOMBERG STRUCK THEIR AGREEMENT IN A FIVEMINUTE PHONE CONVERSATION FRIDAY MORNING LAURENCE MOLLNER EXECUTIVE VICE PRESIDENT OF THE FUTURES DIVISION OF DEAN WITTER REYNOLDS EXPRESSED IRRITATION AT CBOT'S DECISION AFTER PUSHING TO HAVE THE TWO EXCHANGES COME TOGETHER TO GIVE US ACCESS TO THE PRODUCTS AT A REASONABLE COST LIQUIDITY ALL OF THESE THINGS WHICH WOULD BENEFIT OUR CUSTOMERS HE SAID IT'S HARD FOR ME NOT TO GET MAD BUT SMALLER MEMBER FIRMS POINT TO THE COST SAVINGS INVOLVED IN QUITTING GLOBEX AND SHIFTING TO PROJECT A WHICH THE CBOT ESTIMATES AT 600000 ANNUALLY IT'S FINE TO BE ON THE CUTTING EDGE BUT SOMETIMES THAT ONLY CUTS A HOLE IN YOUR POCKETS SAID GLENN HOLLANDER OF HOLLANDER & FEUERHAKEN A CHICAGO GRAINFUTURES TRADING CONCERN 9404180101 940418 WHO'S NEWS USG CHAIRMAN'S 1993 PAY ROSE 13FOLD AS STOCK SOARS ON HOMEBUILDING BOOM BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO USG CORP CHAIRMAN EUGENE B CONNOLLY'S 1993 COMPENSATION INCREASED 13FOLD TO ABOUT 73 MILLION AS THE LARGE WALLBOARD MAKER EMERGED FROM CHAPTER 11 BANKRUPTCYLAW PROTECTION INTO A BOOMING MARKET FOR CYCLICAL STOCKS ROUGHLY TWOTHIRDS OF THE CURRENT VALUE OF MR CONNOLLY'S PAY PACKAGE CAME FROM STOCK OPTIONS ISSUED LAST JUNE AFTER USG EMERGED FROM A BRIEF STAY UNDER BANKRUPTCYCOURT PROTECTION THE COMPANY'S STOCK HAS TRIPLED IN PRICE SINCE THEN AS THE SURGING ECONOMY BOOSTS HOME BUILDING AND OTHER CONSTRUCTION ACTIVITY A COMPANY SPOKESMAN NOTED THAT MR CONNOLLY WHO IS ALSO CHIEF EXECUTIVE RECEIVED NO BONUSES DURING 1991 AND 1992 AS USG SOUGHT TO RESTRUCTURE A CRUSHING 27 BILLION DEBT LOAD THE COMPANY TOOK ON THOSE OBLIGATIONS IN 1988 TO FINANCE A STOCK BUYBACK THAT THWARTED A HOSTILE TAKEOVER THREAT ONLY TO SEE AN ECONOMIC SLOWDOWN SAP ITS ABILITY TO REPAY MR CONNOLLY WASN'T CHIEF EXECUTIVE AT THE TIME OF THE RECAPITALIZATION FOR 1993 HIS SALARY WAS BOOSTED 10 TO 612500 HE WAS ALSO PAID A 717614 BONUS 1164005 UNDER AN OLD PAY PLAN AND A COMBINED 95378 IN PERQUISITES AND MATCHING PAYMENTS FOR A SAVINGS PLAN OPTIONS MR CONNOLLY RECEIVED TO BUY 250000 USG SHARES FOR 103125 EACH MEANWHILE HAVE A VALUE OF ABOUT 47 MILLION BASED ON FRIDAY'S CLOSING PRICE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FRIDAY USG STOCK FELL 50 CENTS TO 2925 AFTER TRADING AS LOW AS 9625 LAST YEAR MR CONNOLLY CAN EXERCISE ONETHIRD OF THE OPTIONS JUNE 1 AND THE REMAINING TWO ONETHIRD PORTIONS SEPARATELY ON JUNE 1 1995 AND JUNE 1 1996 IN ALL 45 COMPANY OFFICIALS RECEIVED OPTIONS TO BUY 1673000 USG SHARES AT 103125 EACH LAST JUNE 1 AND THOSE OPTIONS HAVE AN INDICATED VALUE AT FRIDAY'S CLOSE OF ABOUT 315 MILLION THEY VEST ONETHIRD ANNUALLY ALSO IN RECENT MONTHS AS HOUSING STARTS HAVE SURGED DEMAND FOR WALLBOARD HAS BEEN EXTREMELY STRONG AND PRICES HAVE MOVED UP WHICH COULD TRANSLATE INTO FURTHER GAINS FOR USG SHARES A MERE 1 INCREASE IN THE PRICE OF 1000 SQUARE FEET OF WALLBOARD THE COMPANY NOTES ADDS ABOUT 7 MILLION TO ITS ANNUAL OPERATING PROFIT FOR THE PERIOD MAY 7 1993 THROUGH DEC 31 1993 USG REPORTED A NET LOSS OF 129 MILLION OR 346 A SHARE ON REVENUE OF 133 BILLION THE LOSS INCLUDED PRETAX AMORTIZATION COSTS OF 113 MILLION RELATED TO THE FINANCIAL REORGANIZATION AND A LOSS OF 21 MILLION RELATED TO EXPECTED DEBT RETIREMENT THERE AREN'T COMPARABLE FIGURES FOR THE PERIOD BEFORE THE FIRM EMERGED FROM BANKRUPTCYCOURT PROTECTION 9404180100 940418 ECONOMY RISING SHORTTERM RATES SEEM LIKELY TO HINDER PROFITS OVER THE NEXT YEAR BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RISING SHORTTERM INTEREST RATES ARE LIKELY TO EAT INTO CORPORATE PROFITS OVER THE NEXT YEAR REVERSING A TREND THAT HELPED JUMPSTART THE ECONOMY THERE'S A LOT AT STAKE OF THE 24 TRILLION IN CORPORATE DEBT AND LOANS CURRENTLY OUTSTANDING AT LEAST 1 TRILLION IS BELIEVED TO BE HIGHLY SENSITIVE TO CHANGES IN SHORTTERM INTEREST RATES AND UNLIKE LONGERTERM RATES WHICH MANY ECONOMISTS ARE FORECASTING TO LEVEL OFF OR EVEN DECLINE IN THE MONTHS AHEAD SHORTTERM RATES ARE EXPECTED TO MOVE SHARPLY HIGHER A TREND THAT WILL COST COMPANIES BILLIONS OF DOLLARS IN ADDITIONAL INTEREST PAYMENTS TO TRACK SHORTTERM INTEREST RATES ECONOMISTS FOLLOW THE FEDERALFUNDS RATE WHICH IS USED AS A BENCHMARK FOR OTHER SHORTTERM RATES AND IS INFLUENCED BY FEDERAL RESERVE MONETARY POLICY AFTER DECLINING STEADILY FOR MORE THAN FOUR YEARS THE WIDELY WATCHED FEDERALFUNDS RATE WHICH IS THE RATE THAT BANKS CHARGE EACH OTHER FOR OVERNIGHT LOANS HAS RISEN ONEHALF PERCENTAGE POINT SO FAR THIS YEAR TO STAND AT 35 NANCY LAZAR AN ECONOMIST AT ISI GROUP INC IN NEW YORK EXPECTS THE FEDERALFUNDS RATE TO HIT 4 BY YEAR END ECONOMISTS AT OTHER FORECASTING FIRMS INCLUDING THOSE AT DRI/MCGRAW HILL IN LEXINGTON MASS AND WEFA GROUP IN BALA CYNWYD PA EXPECT A 45 FEDERALFUNDS RATE BY YEAR END A RISE IN INTEREST RATES THAT SIZE WOULD COST US COMPANIES ABOUT 15 BILLION A YEAR ON A PRETAX BASIS COMPARED TO WHAT THE FINANCING COSTS WOULD HAVE BEEN IF INTEREST RATES REMAINED AT 3 AND THAT 15 BILLION AMOUNTS TO ABOUT 5 OF THE 330 BILLION IN CORPORATE PROFITS THAT ECONOMISTS AT DRI FORECAST FOR 1994 KURT KARL AN ECONOMIST WITH WEFA GROUP SAYS THE EXTRA EXPENSE WILL AFFECT PROFITS MUCH MORE THAN NORMALLY BECAUSE MANY COMPANIES CAN'T AFFORD TO PASS THE HIGHER COSTS ON TO CONSUMERS IN THE FORM OF HIGHER PRICES HE SAYS THAT ONLY 10 TO 20 OF AMERICAN COMPANIES HAVE THE MARKET STRENGTH TO RAISE PRICES IN THE CASE OF THE REST HE SAYS HIGHER INTEREST COSTS WILL HAVE TO BE EATEN TAKE SEALY CORP IT'S IN A TOUGH PRICING MARKET SAYS JOHN BARTIK TREASURER WHICH MEANS EXTRA INTEREST EXPENSE WILL COME OUT OF PROFITS THE RECENT RISE IN RATES WILL ADD ABOUT 1 MILLION BEFORE TAXES 600000 AFTER TAXES TO ANNUAL INTEREST EXPENSES ON THE COMPANY'S 200 MILLION IN FLOATINGRATE DEBT LAST YEAR THE CLEVELAND MATTRESS COMPANY EARNED 257 MILLION SEALY WHICH WENT PRIVATE IN A LEVERAGED BUYOUT IN 1989 LAST YEAR REFINANCED A BOND COSTING IT 114 A YEAR IN INTEREST WITH A NEW ONE BEARING A RATE NEARLY TWO PERCENTAGE POINTS LOWER PLENTY OF OTHER COMPANIES HAVE BEEN DOING THE SAME THING LAST YEAR 40 BILLION OF THE RECORD 55 BILLION RAISED IN THE JUNKBOND MARKET WAS IN THE FORM OF REFINANCING SAYS MAX HOLMES A STRATEGIST WITH SALOMON BROTHERS INC JUNK BONDS ARE CORPORATE BONDS WITH SPECULATIVEGRADE CREDIT RATINGS SEALY AND MANY OF THOSE OTHER COMPANIES THEN TURNED AROUND AND LOWERED FINANCING COSTS EVEN MORE BY ENTERING INTO INTERESTRATE SWAP CONTRACTS IN ESSENCE EXCHANGING HIGHINTEREST DEBT FOR LOWERINTEREST SHORTTERM DEBT INDEED MANY MORE COMPANIES THESE DAYS ARE EXPOSED TO RISING SHORTTERM RATES THAN IN THE PAST BECAUSE THE BURGEONING SWAPS MARKET IS SO ACCESSIBLE SAYS MR HOLMES CORPORATIONS WITH HIGHER INVESTMENTGRADE CREDIT RATINGS THOSE RATED TRIPLEB OR HIGHER BY STANDARD & POOR'S RATING GROUP OR BAA AND HIGHER FROM MOODY'S INVESTORS SERVICE INC HAVE ENJOYED THE BENEFITS OF LOWER INTEREST RATES AS WELL ALL TOLD INTEREST EXPENSE FOR NONFINANCIAL US CORPORATIONS LAST YEAR WAS 23 BILLION LESS THAN IN 1989 WITHOUT THOSE SAVINGS THE 111 BILLION IMPROVEMENT IN CORPORATE PROFITS REGISTERED LAST YEAR COMPARED TO 1989 WOULD HAVE BEEN 88 BILLION SAYS MS LAZAR IF INTEREST RATES GO MUCH HIGHER SOME COMPANIES SUCH AS KAMAN CORP AN INDUSTRIALPARTS DISTRIBUTOR WILL BECOME MORE PROACTIVE IN BRINGING CASH IN QUICKER AND LETTING IT GO OUT SLOWER TO REDUCE BORROWINGS SAYS WILLIAM DESAUTELLE TREASURER OTHER FIRMS INCLUDING OIL COMPANY CHEVRON CORP ARE WEIGHING WHEN TO SWITCH MORE BORROWING TO FIXED RATES FROM FLOATING RATES WE THINK SHORTTERM RATES ARE GOING HIGHER SAYS HOWARD SHEPPARD ASSISTANT TREASURER OF CHEVRON BUT NOT ENOUGH TO OFFSET THE VERY HEAVY EXTRA COST OF MOVING TO LONGER MATURITIES ABOUT 5 BILLION OF CHEVRON'S TOTAL DEBT OF MORE THAN 7 BILLION IS ON A FLOATINGRATE BASIS MR SHEPPARD ESTIMATES THAT AT CURRENT INTEREST RATES IT WOULD COST CHEVRON AN EXTRA 25 MILLION A YEAR AFTER TAXES TO SHIFT 1 BILLION OF ITS SHORTTERM BORROWINGS TO FIVEYEAR FIXED RATES HE AND MANY OTHER TREASURERS ARE GAMBLING THEY WILL NOT MISS THE CHANCE TO LOCK IN FIXED RATES AT WHAT ARE STILL HISTORICALLY ATTRACTIVE LEVELS THERE IS A SCENARIO THAT AS RISING SHORTTERM RATES COOL THE ECONOMY AND LESSEN INFLATION FEARS LONGER RATES COULD FALL BACK SAYS BRADLEY JACK BONDSYNDICATE MANAGER AT LEHMAN BROTHERS INC ADDS WALID CHAMMAH A MANAGING DIRECTOR OF MORGAN STANLEY & CO CORPORATE AMERICA DOES NOT SEE ENOUGH RECOVERY IN THE ECONOMY TO CONVINCE THEM THAT LONGTERM RATES ARE HEADED HIGHER AMERICAN TELEPHONE & TELEGRAPH CO HOWEVER ISN'T WAITING THIS SPRING THE COMPANY IS SCHEDULED TO ACQUIRE MCCAW CELLULAR COMMUNICATIONS CORP AND WITH IT THE COMPANY'S 4 BILLION IN FLOATINGRATE DEBT AT&T IS WORRIED THAT RATES MAY GO HIGHER SO AS SOON AS POSSIBLE IT PLANS TO SUPPLANT A BIG CHUNK OF THAT FLOATINGRATE DEBT WITH FIXEDRATE FINANCING WHICH IT ALREADY HAS ARRANGED 9404180099 940418 FIRST OF AMERICA BANK IS MAKING ACQUISITIONS KALAMAZOO MICH FIRST OF AMERICA BANK CORP SAID IT ACQUIRED A FLORIDA BANK AND WILL ACQUIRE AN ILLINOIS BANKHOLDING COMPANY MOVES FIRST OF AMERICA VALUED TOGETHER AT 138 MILLION FIRST OF AMERICA ACQUIRED FROM THE RESOLUTION TRUST CORP FLORIDABASED GOLDOME FEDERAL SAVINGS BANK'S 36 OFFICES AND NEARLY 400 MILLION IN DEPOSITS SEPARATELY THE MICHIGANBASED BANK HOLDING COMPANY ANNOUNCED WHAT IT SAID WAS A DEFINITIVE AGREEMENT TO ACQUIRE FIRST PARK RIDGE CORP A BANKHOLDING COMPANY BASED IN PARK RIDGE ILL WITH 323 MILLION IN ASSETS THE FLORIDA MOVE WILL GIVE THE BANK ACCESS TO ONE OF THE MOST RAPIDLY GROWING AREAS OF THE COUNTRY THE MICHIGAN BANK SAID AND THE ILLINOIS MOVE WILL SOLIDIFY FIRST OF AMERICA'S POISITION IN NORTHERN ILLINOIS THE GOLDOME BANK WAS PURCHASED FOR 58 MILLION IT HAD BEEN MANAGED BY THE RESOLUTION TRUST SINCE 1991 FIRST OF AMERICA SAID THE FIRST PARK RIDGE ACQUISITION WAS VALUED AT 80 MILLION BY FIRST OF AMERICA THE PURCHASE WILL BE MADE BY SWAPPING FIRST OF AMERICA STOCK FOR FIRST PARK RIDGE'S 65139 COMMON SHARES FIRST OF AMERICA SAID THE ACQUISITION IS EXPECTED TO BE COMPLETED BY THE END OF 1994 THE MICHIGAN BANK SAID 9404180098 940418 LEISURE & ARTS TELEVISION HERE'S TO MOTHER WAR AND PARRICIDE BY DOROTHY RABINOWITZ PRIOR TO ITS AIRING ON APRIL 10 A CBS MOVIE CALLED DAVID'S MOTHER EXCITED MORE CRITICAL ACCLAIM THAN ANY MADEFORTV FILM HAS ENGENDERED IN A LONG TIME AND FOR GOOD REASON TRUE THE DIALOGUE WAS JUST TOO SMART AND CRACKLY FOR THIS WORLD AND IT'S TRUE TOO THAT NO ONE WOULD MISTAKE IT FOR A GREAT WORK NEVERTHELESS DAVID'S MOTHER WAS SO MUCH BETTER THAN THE USUAL RUN OF TV MOVIES THAT ITS QUALITY CAME AS A SMALL SHOCK ESPECIALLY SINCE ITS STORY ABOUT A MOTHER'S DEVOTION TO HER AUTISTIC SON SEEMED TO PROMISE JUST THE KIND OF INFIRMITY HEROICS SERVED UP ON NETWORK MOVIES WITH SUCH NONSENSICAL REGULARITY WHAT WAS SO MUCH BETTER ABOUT THIS TV FILM ORIGINALLY A PLAY OF A BRASSY NEUROTIC KIRSTIE ALLEY MAKING HER SLUGGISH WAY THROUGH LIFE WITH A WICKED TONGUE AND A DEPENDENT SON THE SHORT ANSWER IS THE SCRIPT WHICH OFFERS A LEAD CHARACTER OF SOME COMPLEXITY AND A CERTAIN RANCID WIT IT HELPED TOO THAT THIS WAS A SCRIPT WHOSE EVERY REVELATION AND TWIST OF PLOT WAS NOT THUNDERINGLY OBVIOUS FROM THE OUTSET BUT THERE WAS SOMETHING ADDITIONAL ABOUT THIS FILM THAT ANNOUNCED ITS QUALITY NAMELY LARGE AMBITION ALWAYS UNMISTAKABLE AND A RARE COMMODITY ON TELEVISION FOR AT LEAST TWO NIGHTS THIS WEEK THOUGH AUDIENCES HAVE ANOTHER OPPORTUNITY TO SEE WHAT THE MEDIUM CAN DO WITH AMBITION THIS TIME ON A GRAND SCALE TUESDAY 810 PM AND WEDNESDAY 910 PM NBC PRESENTS A TWOPART SERIES BY WRITERPRODUCER DAVID RINTELS TITLED WORLD WAR II WHEN LIONS ROARED IT ATTEMPTS NOTHING LESS THAN A HISTORY OF THE GRAND ALLIANCE THAT WON THE WAR AGAINST GERMANY WE HAVE HERE THAT IS A FOURHOUR DRAMA SPUN OUT OF THE RELATIONSHIP FORGED BETWEEN THE BIG THREE ROOSEVELT CHURCHILL AND STALIN FROM 1941 WHEN ENGLAND STOOD ALONE UNTIL THE TRIUMPHANT END NOW THIS IS A TALL ORDER FOR FOUR HOURS WHICH SHOULD IDEALLY HAVE BEEN AT LEAST SIX BUT MR RINTELS WHO HAS BEEN WORKING ON THIS PROJECT ON AND OFF FOR 20 YEARS HAS BROUGHT IT OFF AND WITH REMARKABLE SKILL WHAT IS ALMOST AS REMARKABLE IS THAT A NETWORK AGREED TO PUT THIS ON THE AIR NBC'S WEST COAST PRESIDENT DON OHLMEYER DESERVES CREDIT FOR THROWING HIS WEIGHT BEHIND SO UNMISTAKABLY RISKY AND COMPLICATED A PROJECT THE BULK OF THE DRAMATIC ACTION HERE AFTER ALL TAKES PLACE BEHIND DESKS AT THE WHITE HOUSE IN CHURCHILL'S WAR ROOM INSIDE THE KREMLIN AND AT THE CONFERENCE TABLES OF TEHERAN AND YALTA MR RINTELS AND COMPANY HAVE NATURALLY FOUND WAYS TO LIVEN MATTERS UP USING SPLIT SCREENS MUSIC AND SIDE EXCURSIONS INTO PSYCHOLOGICAL DETAIL THEY ALSO HAVE OF COURSE THE UNPARALLELED DRAMA OF THE WAR ITSELF FOOTAGE USED TO PARTICULARLY GREAT EFFECT IN PART ONE THE INVASION OF POLAND ENGLAND AT WAR THE ROUT AT DUNKIRK THIS IS THE EASY PART THE DIFFICULTY COMES AS THE FILM RUNS ON WITH FACTS PILING ON FACTS AT TOP SPEED THIS IS IN SHORT A PRODUCTION THAT ASKS MUCH OF ITS AUDIENCE PERHAPS MORE THAN ANY OTHER SERIES EVER VENTURED ON NETWORK TV IT ISN'T EVERY DAY AFTER ALL THAT PRIME TIME OFFERS DRAMATIC RECITATIONS OF THE MINUTES OF THE TEHERAN AND YALTA CONFERENCES THE SERIES OF COURSE ACCOMPLISHES MUCH MORE THAN THE VERBATIM REENACTMENT OF CONFERENCES MR RINTELS IS AFTER BIG GAME NAMELY SHOWING HOW THE INTERPLAY OF PERSONALITY AND CHARACTER AMONG THE BIG THREE AFFECTED THE ALLIANCE AND THE FUTURE OF THE WORLD AFTER 1945 THAT HE SUCCEEDS IN DOING THIS OWES MUCH TO THREE STARS JOHN LITHGOW FDR BOB HOSKINS CHURCHILL AND MICHAEL CAINE STALIN IT MAY TAKE A WHILE TO GET USED TO MICHAEL CAINE AS STALIN POSSIBLY BECAUSE OF HIS STRANGE ACCENT ADVERTISED AS GEORGIAN THOUGH BEARING A CLOSER RESEMBLANCE TO ACCENTS THAT USED TO BE HEARD ON NEW YORK'S LOWER EAST SIDE CALLED ON TO EXPLAIN HOW HE CAME TO PLAY THE SOVIET LEADER THE WHIMSICAL MR CAINE TOLD A TV HOST THAT JOSEPH STALIN WAS FIVEFOOTTWO INCHES AND HAD BLACK HAIR AND EYES WHEREAS HE HIMSELF WAS SIXFOOTSOMETHING HAD BLOND HAIR BLUE EYES AND WAS ENGLISH SO IT WAS CLEAR ENOUGH WHY THE PRODUCERS HAD SOUGHT HIM OUT MR CAINE IS NOT A BAD STALIN ON THE WHOLE JOHN LITHGOW HAS CAUGHT ROOSEVELT'S GESTURES AND LOOK MUCH THANKS TO THE MAKEUP ARTIST EVEN IF HE DOES MANAGE TO MAKE FDR SOUND A TRIFLE PRISSY UNDOUBTEDLY THIS HAS SOMETHING TO DO WITH CONTEMPORARY NOTIONS OF WHAT AN AMERICAN UPPER CLASS ACCENT OF WHICH THERE ARE FEW LEFT SOUNDS LIKE THEN THERE IS MR HOSKINS WHO HAS EVIDENTLY SAT UP NIGHTS LEARNING THE CADENCES OF CHURCHILL'S GREAT WARTIME SPEECHES THERE ARE IN THE REST OF THE FILM NO SCENES QUITE EQUAL TO THOSE IN WHICH HOSKINS DELIVERS THOSE ADDRESSES CATCH HIM AS THE NEW PRIME MINISTER DECLAIMING YOU ASK WHAT IS OUR POLICY TO WAGE WAR THAT IS OUR POLICY MR HOSKINS INDEED MAY QUITE POSSIBLY BE THE BEST CHURCHILL TO HIT THE SCREEN AS ALWAYS THERE ARE EVENTS ONE WISHES SUCH A FILM HAD INCLUDED FOR EXAMPLE HARRY HOPKINS'S ROOSEVELT'S ADVISER VISIT TO AN ENGLAND FIGHTING ALONE AND IN PERIL HOPKINS WHO KNEW THAT CHURCHILL WAS WAITING TO HEAR WORD OF FORTHCOMING HELP SAID BEFORE LEAVING YOU WISH TO KNOW WHAT I AM GOING TO SAY TO PRESIDENT ROOSEVELT ON MY RETURN WELL I AM GOING TO QUOTE FROM THAT BOOK OF BOOKS WHITHER THOU GOEST I WILL GO AND WHERE THOU LODGEST I WILL LODGE THY PEOPLE SHALL BE MY PEOPLE THEN REPORTS THE CHRONICLER OF THIS SCENE HOPKINS VERY QUIETLY ADDED EVEN TO THE END THE PRIME MINISTER'S EYES FILLED WITH TEARS THE REPORT NOTED IN A PRODUCTION THAT REQUIRED SO MUCH CUTTING THAT EVEN HIROSHIMA HAD TO BE LEFT OUT ONE CAN'T NEEDLESS TO SAY ASK FOR EVERYTHING STILL MR RINTELS HAS BROUGHT FORTH A WORK THAT IS IN ITS WEIGHT AND GRAND AMBITION A CLOSE ENOUGH APPROXIMATION OF EVERYTHING EVERYTHING THAT IS THAT TELEVISION NEEDS MORE OF IF ON THE OTHER HAND YOU WERE ONE OF THOSE PEOPLE THERE ARE A LOT OF US WHO COULDN'T BEAR A MOMENT OF THE MENENDEZ BROTHERS AND THEIR TRIAL ON COURT TV OR ELSEWHERE FOX'S MOVIE HONOR THY FATHER AND MOTHER AIRING 810 PM TONIGHT IS THE FILM FOR YOU IT DEPICTS THE MENENDEZ BOYS AS AMORAL BRUTES AND THUGS THE JURORS' DECISION AS THE WORK OF IDIOTS IN SHORT IT SUMS THE MENENDEZ SAGA UP NICELY IN TWO FAST MOVING HOURS 9404180097 940418 LEGAL BEAT LATE TAX FILERS OFFER NEW PLEA MENTAL MALADY BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL SO YOU DIDN'T FILE YOUR INCOME TAXES NOW WHAT INSTEAD OF PAYING UP SOME LATE FILERS ARE TAKING THEIR PSYCHIATRISTS ALONG WITH THEIR LAWYERS TO EXPLAIN A NEW MALADY TO THE IRS THE FAILURETOFILE SYNDROME THE PURPORTED SYNDROME HAS EMERGED AS A LEGAL DEFENSE IN SOME CASES IN NEW YORK CITY WHERE AS IT HAPPENS A NUMBER OF THOSE WHO EXHIBIT THE ILLNESS ARE HIGHLY RESPECTED COMPETENT ATTORNEYS AT THE TOP OF THEIR PROFESSION SAYS ELLIOT SILVERMAN A TAX LAWYER AT THE NEW YORK FIRM OF GOLD & WACHTEL MR SILVERMAN AND STEPHEN J COLEMAN A NEW YORK UNIVERSITY PSYCHIATRY PROFESSOR RECENTLY WROTE AN ARTICLE ON THE SYNDROME IN THE NEW YORK LAW JOURNAL IN IT THEY ARGUED THAT FAILING TO FILE INCOME TAXES CAN BE THE RESULT OF AN OVERALL INABILITY TO ACT IN ONE'S OWN INTEREST ALL WHILE ONE IS ACTIVELY ANXIOUS ABOUT A CLEAR AND PRESENT DANGER FOR LAWYERS THAT CLEAR AND PRESENT DANGER TOOK THE FORM LAST YEAR OF A NATIONWIDE COMPUTER SWEEP BY THE INTERNAL REVENUE SERVICE TO PICK UP NONFILERS WITH SPECIAL EMPHASIS ON LAWYERS IN NEW YORK ILLINOIS AND PENNSYLVANIA LAST SEPTEMBER 50 NEW YORK LAW PARTNERS INCLUDING SOME AT THE CITY'S LEADING FIRMS FOUND THEMSELVES UNDER CRIMINAL INVESTIGATION FOR FAILURE TO FILE INCOME TAXES THE GOVERNMENT'S ENFORCEMENT PUSH CAME ON THE HEELS OF NEW FEDERAL SENTENCING GUIDELINES THAT STIFFEN PENALTIES FOR FAILING TO FILE THE MINIMUM SENTENCE USED TO BE PROBATION SAYS NEW YORK LAWYER BRYAN SKARLATOS AT THE LAW FIRM OF SKARLATOS & RING NOW IT'S FOUR TO NINE MONTHS IN PRISON HE SAYS SO FAR THE FAILURETOFILE SYNDROME HAS NOT BEEN TRIED AS A DEFENSE IN A CRIMINAL TAX CASE BUT TAX ATTORNEYS IN NEW YORK SAY THEY HAVE SUCCESSFULLY INVOKED THE MALADY IN THE EARLY STAGES OF SOME IRS INVESTIGATIONS TO FEND OFF POTENTIAL CRIMINAL CHARGES AND STEER VIOLATIONS TOWARD CIVIL SETTLEMENTS AND ITS USE THEY SAY HAS NOT BEEN EXCLUSIVELY IN DEFENSE OF LAWYERS NEW YORK ATTORNEY ROBERT FINK SAYS HE DEFENDED A THROAT SURGEON RECENTLY WHO HADN'T FILED FEDERAL INCOME TAXES IN 10 YEARS BECAUSE OF AN AVERSION TO FILLING OUT FORMS THE DOCTOR'S OFFICE AND PERSONAL RECORDS WERE ALSO IN GENERAL DISARRAY SAYS MR FINK BUTTRESSING THE ARGUMENT THAT THE DOCTOR HAD A PROBLEM AT FIRST MR FINK SAYS THE IRS WOULDN'T BUY IT BUT THAT CHANGED WHEN MR FINK WAS ABLE TO PRODUCE A PILE OF CLAIM FORMS FOR SURGERY THAT HIS CLIENT HAD ALSO FAILED TO FILL OUT THUS FORFEITING SEVERAL HUNDRED THOUSAND DOLLARS IN INSURANCE REIMBURSEMENTS THE IRS DROPPED THE CRIMINAL CASE THE ONLY TIME THIS DEFENSE HAS A POSSIBILITY OF BEING SUCCESSFUL IS WHERE THE FAILURE TO FILE PERMEATES A LIFESTYLE IN ALL FUNCTIONS EVEN IN AREAS WHERE THE PERSON IS FINANCIALLY HURT SAYS MR FINK DR COLEMAN THE NYU PSYCHIATRY PROFESSOR SAYS HE HAS TREATED SIX OR SEVEN LAWYERS IN HIS PRIVATE PRACTICE WHO FAILED TO FILE THEIR TAXES AND THEY ALL FIT SIMILAR PROFILES WHEN YOU TALK WITH THEM YOU REALLY SEE THAT SOMETHING IS GOING ON HE SAYS EXPIRED DRIVER'S LICENSES LAPSED INSURANCE POLICIES FAILURE TO JOIN THE STATE BAR AFTER PASSING THE EXAM NOT KEEPING RECORDS OF BILLABLE HOURS ALL THESE MIGHT BE INDICATIONS OF PARALLEL DIFFICULTIES RELATED TO THE FAILURETOFILE SYNDROME SAYS DR COLEMAN HE AND MR SILVERMAN DESCRIBE TYPICAL PATIENTS AS HIGHLY AMBITIOUS COMPETITIVE HARDWORKING PERFECTIONISTIC HYPERCRITICAL DETAILORIENTED PEOPLE SUCH PEOPLE CAN'T RELAX DON'T KNOW HOW TO DELEGATE TEND TO PROCRASTINATE AND BECOME SECRETIVE THEY ALSO TEND TO LIVE FOR THEIR WORK SUFFER FROM FAMILY PROBLEMS AND MAY HAVE HAD TRAUMATIC LIFE EXPERIENCES ROUNDING OUT THE PICTURE IS THE PRESENCE OF SOME OTHER DISORDER USUALLY DEPRESSION A TENDENCY TOWARD SELFDESTRUCTION PASSIVE AGGRESSION OR OBSESSIVE COMPULSION ACCORDING TO DR COLEMAN ALL THAT COULD DESCRIBE A LOT OF LAWYERS BUT NOT EVERYONE BUYS INTO THE DIAGNOSIS YEAH IT'S A SICKNESS SCOFFS ANNE D FAHY AN IRS CRIMINAL INVESTIGATIONS BRANCH CHIEF IN NEW YORK WE CALL IT THE VIOLATION OF SECTION 3203 SHE SAYS REFERRING TO THE FEDERAL CRIMINAL CODE SOME PSYCHIATRIC EXPERTS BELIEVE THAT CONTINUALLY FAILING TO PAY INCOME TAXES EXHIBITS A DIFFERENT KIND OF PATHOLOGY NONFILERS ARE OFTEN ANTISOCIAL AND NARCISSISTIC INDIVIDUALS WHO BELIEVE THEY CAN GET AWAY WITH THEIR DEVIANT BEHAVIOR SAYS SCOTT WETZLER CHIEF OF THE DIVISION OF PSYCHOLOGY AT ALBERT EINSTEIN COLLEGE OF MEDICINE IN NEW YORK THESE ARE NOT OBSESSIVE PERFECTIONISTS ADDS DR WETZLER WHOSE BROTHER JAMES IS STATE TAX COMMISSIONER IN NEW YORK THESE ARE PEOPLE WHO ARE TRYING TO GET AWAY WITH ALL SORTS OF THINGS IN THEIR LIVES THE FAILURETOFILE SYNDROME ADDS DOUGLAS FIZEL SPOKESMAN FOR THE AMERICAN PSYCHOLOGICAL ASSOCIATION ISN'T RECOGNIZED IN ANY PROFESSIONAL DIAGNOSTIC MANUAL IT SOUNDS MORE LIKE THIS IS COMING OUT OF THE LEGAL ARENA THAN THE PSYCHOLOGICAL HE SAYS THE CONFESSED KILLER OF THE REV MARTIN LUTHER KING JR HAS WON A CHANCE TO PRESENT NEW EVIDENCE THAT HE IS INNOCENT JAMES EARL RAY WHO PLEADED GUILTY TO THE 1968 ASSASSINATION HAS BEEN TRYING FOR TWO DECADES TO RETRACT HIS CONFESSION ARGUING THAT HE WAS UNWITTINGLY SET UP AS PART OF A BROADER CONSPIRACY IN A HEARING FRIDAY IN STATE COURT IN MEMPHIS JUDGE JOSEPH BROWN SAID HE WOULD ALLOW MR RAY AND HIS LAWYER WILLIAM PEPPER TO CALL WITNESSES TO BACK UP HIS CLAIM OF INNOCENCE ALTHOUGH JUDGE BROWN REJECTED MR RAY'S REQUEST FOR A NEW TRIAL HE SAID HE WOULD ALLOW HIM TO PRESENT EVIDENCE SUPPORTING THE REQUEST THE DECISION REJECTING A RETRIAL THEN COULD BE APPEALED NO ONE IN OUR OFFICE HAS EVER SEEN ANYTHING LIKE THIS HAPPEN SAID JOHN CAMPBELL AN ASSISTANT DISTRICT ATTORNEY IN MEMPHIS THE JUDGE AGREES THAT THE LAW IS PRETTY CLEAR THAT MR RAY'S TIME LIMIT FOR SEEKING A NEW TRIAL HAS EXPIRED BUT THE JUDGE INDICATED THAT HE WAS ALLOWING THE EVIDENCE TO BE PRESENTED IN COURT BECAUSE OF LINGERING DOUBTS ABOUT THE CASE MR CAMPBELL SAID JUDGE BROWN COULDN'T BE REACHED FOR COMMENT IN DECEMBER LLOYD JOWERS A FORMER TAVERN OWNER SAID IN A TELEVISED INTERVIEW THAT AT THE REQUEST OF A GROCER WITH REPUTED MOB CONNECTIONS HE HAD HIRED A HIT MAN SOMEONE OTHER THAN MR RAY TO KILL DR KING THE INTERVIEW WAS BROADCAST ON THE ABC NEWSMAGAZINE PRIMETIME LIVE MR RAY IS SERVING A 99YEAR SENTENCE AT THE RIVERBEND MAXIMUM SECURITY INSTITUTE IN NASHVILLE WHO'S NEWS ELIZABETH HOLTZMAN FORMER NEW YORK CITY COMPTROLLER AND US CONGRESSWOMAN HAS JOINED HERRICK FEINSTEIN A 60LAWYER FIRM IN NEW YORK HOSPITAL MERGER THE FEDERAL TRADE COMMISSION HAS DROPPED A LAWSUIT IT BROUGHT CHALLENGING THE ACQUISITION OF UKIAH GENERAL HOSPITAL BY ADVENTIST HEALTH SYSTEM/WEST INC IN UKIAH CALIF THE DECISION AFFIRMS AN ADMINISTRATIVE LAW JUDGE'S EARLIER RULING THAT THREW OUT THE CASE THE FTC STAFF ORIGINALLY ARGUED THAT THE 1988 ACQUISITION VIOLATED FEDERAL ANTITRUST LAWS BY GIVING ADVENTIST HEALTH CONTROL OF THREE OF THE FIVE UKIAHAREA HOSPITALS EDWARD FELSENTHAL CONTRIBUTED TO THIS ARTICLE 9404180096 940418 CHARTER ONE HAD STRONG 1ST QUARTER FOR EARNINGS AND LOAN GENERATION BY RALPH E WINTER SPECIAL TO THE WALL STREET JOURNAL CLEVELAND CHARTER ONE FINANCIAL INC HAD A STRONG FIRST QUARTER FOR EARNINGS AND LOAN GENERATION SAID CHARLES JOHN KOCH PRESIDENT AND CHIEF EXECUTIVE OFFICER CURRENT TRENDS INDICATE CONTINUED EARNINGS GAINS FOR THE REMAINDER OF THE YEAR EVEN THOUGH 1993 WAS A VERY FAVORABLE YEAR FOR THE THRIFT INDUSTRY MR KOCH SAID FIRSTQUARTER RESULTS WON'T BE AVAILABLE UNTIL WEDNESDAY BUT MR KOCH SAID THE OHIO THRIFT PROBABLY WILL REPORT NET INCOME IN THE 68 CENTS TO 70 CENTS A SHARE RANGE THAT WOULD BE ABOUT A 20 INCREASE FROM OPERATING PROFIT OF 128 MILLION OR 57 CENTS A SHARE A YEAR EARLIER IN THE 1993 FIRST QUARTER CHARTER ONE HAD A NONRECURRING GAIN OF 7 MILLION FROM A CHANGE IN ACCOUNTING FOR INCOME TAXES MAKING NET INCOME 198 MILLION OR 88 CENTS A SHARE THE 1993 SHARE EARNINGS FIGURES ARE ADJUSTED FOR A 3FOR2 STOCK SPLIT IN OCTOBER DIRECTORS ARE LIKELY TO CONSIDER A DIVIDEND INCREASE AT A BOARD MEETING NEXT WEEK MR KOCH SAID THE BOARD BOOSTED THE DIVIDEND TWICE DURING 1993 THE LATEST MOVE IN OCTOBER ESTABLISHED A QUARTERLY RATE OF 12 CENTS A SHARE CHARTER ONE ORIGINATED A RECORD 365 MILLION TO 375 MILLION OF LOANS IN THE LATEST QUARTER NEARLY DOUBLE THE YEAREARLIER QUARTER'S 190 MILLION MR KOCH SAID THE PREVIOUS HIGH WAS 331 MILLION IN THE 1993 FOURTH QUARTER MR KOCH SAID IT IS HARD TO PREDICT PROFIT FOR THE FULL YEAR BECAUSE INTEREST RATES AND ECONOMIC CONDITIONS CAN CHANGE QUICKLY HOWEVER ANALYST ESTIMATES IN THE 280 TO 290 A SHARE RANGE SEEM TO BE REASONABLE HE SAID IN 1993 CHARTER EARNED 614 MILLION OR 267 A SHARE FROM OPERATIONS INCLUDING THE NONRECURRING GAIN NET INCOME WAS 685 MILLION OR 298 A SHARE THE RECENT RISE IN LONGTERM INTEREST RATES PRACTICALLY KILLED MORTGAGE REFINANCING MR KOCH SAID THAT'S A PLUS FOR CHARTER ONE BECAUSE REFINANCINGS REMOVE HIGHINTERESTRATE MORTGAGES FROM THE THRIFT'S LOAN PORTFOLIO ALSO EARNINGS IN THE FINAL THREE QUARTERS OF 1994 WILL BENEFIT FROM CHARTER ONE'S RECENT PURCHASE OF ABOUT 400 MILLION OF MORTGAGEBACKED SECURITIES MR KOCH SAID THEY HAD LITTLE IMPACT ON THE FIRST QUARTER HE SAID BECAUSE MOST OF THE SECURITIES WERE PURCHASED IN LATE MARCH INTEREST RATES ON BOTH THE PURCHASED SECURITIES AND THE LOAN FROM THE FEDERAL HOME LOAN BANK THAT FINANCED THE PURCHASE ARE ADJUSTABLE BASED ON THE LONDON INTERBANK OFFERED RATE OR LIBOR HE SAID PRACTICALLY ELIMINATING RISK CHARTER ONE ENDED THE QUARTER WITH ASSETS OF ABOUT 56 BILLION MR KOCH SAID UP FROM 52 BILLION AT THE START OF THE YEAR CHARTER ONE DIRECTORS MAY CONSIDER A MODEST STOCK BUYBACK PROGRAM LATER THIS YEAR MR KOCH SAID THE THRIFT HAS BEEN HUSBANDING ITS CAPITAL TO MAKE ACQUISITIONS PARTICULARLY TO BUY ASSETS OF FAILED THRIFTS FROM THE RESOLUTION TRUST CORP THE RTC REQUIRES THAT PROSPECTIVE BUYERS HAVE THE MONEY IN HAND BEFORE THEY BID MR KOCH SAID HE CONTINUES TO EXPLORE ACQUISITION POSSIBILITIES IN OHIO AND NEIGHBORING STATES HOWEVER THE RTC HAS FEW ASSETS LEFT THAT INTRIGUE CHARTER ONE'S MANAGEMENT ONE POSSIBILITY IS TRANSOHIO SAVINGS WHICH THE RTC IS EXPECTED TO OFFER FOR SALE IN THE NEXT MONTH OR TWO MR KOCH SAID HE WON'T DECIDE WHETHER TO BID UNTIL HE HAS EXAMINED TRANSOHIO'S BOOKS TRANSOHIO'S VALUE DECLINED AFTER THE RTC SOLD OFF THE THRIFT'S LOANS HE SAID AND THE DEPOSIT BASE HAS ERODED CHARTER ONE EXPECTS TO COMPLETE THE PURCHASE OF FOUR THRIFT BRANCHES IN THE CANTON OHIO AREA NEXT MONTH MR KOCH SAID THE BRANCHES HAVE 112 MILLION OF DEPOSITS AND WILL STRENGTHEN CHARTER ONE'S ALREADY STRONG POSITION IN THAT MARKET HE SAID THE CURRENT INTERESTRATE ENVIRONMENT IS FAVORABLE FOR CHARTER ONE BOTH FOR 1994 AND FOR BUILDING A BASE FOR FUTURE EARNINGS MR KOCH SAID BECAUSE OF THE DROPOFF IN MORTGAGE REFINANCING THE INTERESTRATE SPREAD ON THE ASSET PORTFOLIO CHARTER ONE HELD AT THE START OF THE YEAR APPEARS TO BE FLATTENING OUT AFTER A DECLINE IN THE 1993 SECOND HALF MR KOCH SAID SHORTTERM RATES HAVE RISEN LESS THAN LONGTERM RATES HE SAID AND SO FAR THERE HAS BEEN LITTLE IMPACT ON CHARTER ONE'S COST OF DEPOSITS 9404180095 940418 BUSINESS BRIEFS ALLIEDSIGNAL INC MORRISTOWN NJ SAID IT COMPLETED THE PURCHASE OF THE FLUOROCHEMICALS BUSINESS OF AKZO CHEMICALS BV OF THE NETHERLANDS ALLIEDSIGNAL HAS AEROSPACE AUTOMOTIVEPRODUCTS AND ENGINEEREDMATERIALS INTERESTS TERMS WEREN'T DISCLOSED FEDERAL PAPER BOARD CO MONTVALE NJ SIGNED A JOINT VENTURE AGREEMENT WITH INDIA'S MODI GROUP TO OPEN A CUP MANUFACTURING FACILITY IN BOMBAY IN EARLY 1995 MODIFEDERAL WILL PRODUCE AND MARKET PAPER CUPS AND LIDS FOR INDIA'S FOODSERVICE INDUSTRY WHILE A FEDERAL PAPER UNIT WILL PROVIDE EQUIPMENT TECHNOLOGY AND MANUFACTURING EXPERTISE TO THE ENTERPRISE PERKINELMER CORP NORWALK CONN A MAKER OF ANALYTICAL INSTRUMENTS SAID ITS PARTNERSHIP WITH SCIEX INSTRUMENTS OF TORONTO WILL UNDERWRITE RESEARCH OF SOURCES FOR NEW DRUGS AT THE DRUG DESIGN AND DEVELOPMENT CENTER AT AUSTRALIA'S UNIVERSITY OF QUEENSLAND TERMS WEREN'T DISCLOSED ABAXIS INC SUNNYVALE CALIF RECEIVED CLEARANCE FROM THE FOOD AND DRUG ADMINISTRATION TO MARKET A PORTABLE BLOOD ANALYZER THAT WILL GIVE TEST RESULTS IN 12 MINUTES THE UNIT WILL SELL FOR ABOUT 8000 ABAXIS SAID NORTHERN TRUST CORP CHICAGO BOUGHT HAZLEHURST & ASSOCIATES AN ATLANTABASED RETIREMENT SERVICES FIRM FOR 225 MILLION IN STOCK 9404180094 940418 STONE CONTAINER SAYS FLORIDA BLAST KILLED 3 HALTED OPERATIONS CHICAGO STONE CONTAINER CORP SAID AN EXPLOSION AT ITS PANAMA CITY FLA PULP AND PAPER MILL LAST WEEK KILLED THREE EMPLOYEES INJURED SEVEN AND KNOCKED THE PLANT OUT OF OPERATION THE BLAST WEDNESDAY AFTERNOON OCCURRED IN ONE OF THE PLANT'S 22 BATCH DIGESTERS VESSELS IN WHICH STEAM PRESSURE IS USED TO PRODUCE PULP THE DIGESTER WAS DESTROYED AND OTHER EQUIPMENT WAS SERIOUSLY DAMAGED THE COMPANY SAID THE CAUSE OF THE BLAST HASN'T BEEN DETERMINED ARNOLD F BROOKSTONE EXECUTIVE VICE PRESIDENT SAID YESTERDAY THAT STONE HAS TALKED SINCE THE ACCIDENT WITH OTHER PAPER COMPANIES THAT OWN SIMILAR EQUIPMENT AND SO FAR HASN'T IDENTIFIED ANY MAINTENANCE OR PRODUCTION METHODS THAT MIGHT HAVE LED TO THE EXPLOSION WHILE DIGESTERS USE STEAM PRESSURE SUCH EXPLOSIONS ARE VERY UNUSUAL STONE SAID THE COMPANY AND THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION ARE INVESTIGATING THE ACCIDENT STONE SAID IT COULD TAKES MONTHS TO RESUME OPERATION THE COMPANY SAID THE PLANT EMPLOYS 585 PEOPLE WITH A DAILY CAPACITY OF 860 TONS OF LINER BOARD AND 852 TONS OF BLEACHED MARKET PULP DEMAND FOR BOTH PRODUCTS IS VERY STRONG CURRENTLY MR BROOKSTONE SAID AND STONE AND ITS COMPETITORS ARE PRODUCING AT FULL CAPACITY THE COMPANY SAID INSURANCE POLICIES COVER ALL LOSSES ASSOCIATED WITH THE INCIDENT INCLUDING PROPERTY DAMAGE AND BUSINESS INTERRUPTION MR BROOKSTONE WOULDN'T ESTIMATE THE POTENTIAL LOSSES FROM THE EXPLOSION SUCH PLANTS COST HUNDREDS OF MILLIONS OF DOLLARS TO BUILD NEW HE SAID 9404180093 940418 POLITICS & POLICY PRESIDENT MRS CLINTON TO GET REFUND ON 1993 TAXES INCOME PUT AT 293757 BY VIVECA NOVAK STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT AND HILLARY RODHAM CLINTON WILL RECEIVE A TAX REFUND FOR 1993 OF 7982 THE FIRST COUPLE'S ADJUSTED GROSS INCOME FOR 1993 WAS 293757 INCLUDING THE PRESIDENT'S 189167 SALARY THEY PAID FEDERAL INCOME TAXES OF 62670 THE REMAINING INCOME CAME FROM INTEREST DIVIDENDS CAPITAL GAINS INCLUDING 40553 FROM HOLDINGS IN THE COUPLE'S BLIND TRUST WHICH WAS SET UP AT MIDYEAR AND A REFUND OF 1992 ARKANSAS STATE TAXES ALSO INCLUDED 3 IN ROYALTIES FROM MIDLIFE INVESTMENTS A PARTNERSHIP MRS CLINTON BEGAN SEVERAL YEARS AGO WITH COLLEAGUES FROM THE ROSE LAW FIRM THE COMPANY PURCHASED PART OF A FIRM THAT INVESTS IN MOVIE DEALS THE CLINTONS' 71482 IN ITEMIZED DEDUCTIONS INCLUDED 38683 IN MOVING EXPENSES 15815 IN STATE AND LOCAL TAX PAYMENTS 5543 IN INTEREST DEDUCTIONS AND 17000 IN CHARITABLE CONTRIBUTIONS THOSE DONATIONS TO CHARITY WERE ALL IN CHECK FORM NO MORE DEDUCTIONS FOR CASTOFF UNDERWEAR AND OTHER CLOTHING A MUCHNOTED FEATURE OF LAST YEAR'S RETURN THE COUPLE PROVIDED A LIST OF RECIPIENTS OF THE DONATIONS INCLUDING A VINCENT FOSTER SCHOLARSHIP FUND YALE LAW SCHOOL SEVERAL CHURCHES SIDWELL FRIENDS SCHOOL AND OTHERS BUT UNLIKE LAST YEAR DIDN'T SPECIFY HOW MUCH WENT TO EACH ONE THE MOVING EXPENSES WERE REIMBURSED BY THE PRESIDENTIAL TRANSITION PLANNING FOUNDATION THE CLINTONS COUNTED THE REIMBURSEMENT AS INCOME AND THEN TOOK A DEDUCTION FOR THE SUM A NEW WRINKLE IN PRESIDENTIAL INCOME WAS ALSO ANNOUNCED THE FIRST LADY WHOEVER SHE MAY BE WILL GET AN EXTRA 12000 ANNUALLY THANKS TO THE WILL OF ONE HENRY G FREEMAN JR A WEALTHY PHILADELPHIAN WHO DIED IN 1929 THE MONEY WAS TO START FLOWING AFTER ALL THE NAMED BENEFACTORS IN HIS WILL DIED THE LAST HEIR DIED IN 1989 BUT IT WAS UNCLEAR WHETHER FORMER FIRST LADY BARBARA BUSH HAD RECEIVED ANY OF THE PROCEEDS MR FREEMAN DID THIS HE WROTE IN HIS WILL BECAUSE I FEEL THE PRESIDENT OF THE UNITED STATES RECEIVES SUCH A MISERABLE PITTANCE FOR A MAN HOLDING THE GREATEST POSITION ON EARTH ACCORDING TO WHITE HOUSE SPOKESMAN MARK GEARAN THE CLINTONS DONATED THE MONEY TO CHARITY THE CLINTONS CHECKED THE BOX SENDING 3 OF THEIR TAXES TO THE PRESIDENTIAL ELECTION CAMPAIGN FUND FOR THE THIRD YEAR IN A ROW IN 1990 THEY MARKED THE BOX NO AND FROM 198089 THEY LEFT IT BLANK THENCANDIDATE CLINTON BENEFITED FROM 552 MILLION IN PUBLIC FINANCING IN THE 1992 GENERAL ELECTION A CLINTON PRESS AIDE SAID THE COUPLE WILL APPLY THEIR NEARLY 8000 REFUND TO NEXT YEAR'S TAXES RATHER THAN GETTING A CHECK 9404180092 940418 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN SYRIA'S LOOSENING OF ITS CENTRALIZED ECONOMY HAS LET PRIVATE ENTERPRISE FLOWER AND FOREIGN INVESTMENT GLIMMER THE BUREAUCRACY WHICH LONG SHACKLED ENTREPRENEURS IN A COUNTRY HISTORICALLY KNOWN FOR COMMERCE BEGAN EASING RULES AND LOOKING WEST AFTER THE DEMISE OF ITS LONGTIME PATRON THE SOVIET UNION WHILE INDUSTRIES SUCH AS OIL STEEL AND CHEMICALS ARE STILL RUN BY THE STATE A MEASURE KNOWN AS LAW 10 ENABLED HUNDREDS OF BUSINESSES TO IMPORT MACHINERY AND RAW MATERIALS TO IMPROVE THEIR PRODUCTS THOUGH SYRIA STILL LACKS MASSPRODUCTION KNOWHOW AND SKILLED LABOR MARKETS ARE CRAMMED WITH SYRIANMADE PRODUCTS SELLING FOR A THIRD THE PRICE OF IMPORTS MORE THAN 300 ENTERPRISES HAVE BEEN SET UP AND 3 BILLION INVESTED UNDER LAW 10 WITH ITS TAX AND TARIFF INCENTIVES BUT MONEY FROM ABROAD IS ONLY TRICKLING IN AS INVESTORS WANT GUARANTEES FOR REPATRIATING HARDCURRENCY EARNINGS SYRIA MEANWHILE HAS BOOSTED FARM AND OIL OUTPUT TO SPUR THE ECONOMY WHICH HAS GROWN BETWEEN 7 AND 9 A YEAR SINCE 1990 THE FRENCH SENATE PASSED AND SENT TO THE NATIONAL ASSEMBLY A BILL TO PROTECT THE NATION'S LANGUAGE BY MAKING IT ILLEGAL TO USE FOREIGN WORDS IN MANY INSTANCES THE LEGISLATION HAS BEEN RIDICULED IN FRANCE AND ABROAD AS A FUTILE ATTEMPT TO STEM THE FRENCH LANGUAGE'S EVOLUTION AND THE GLOBAL SWEEP OF ENGLISH PROPONENTS WANT TO MAINTAIN THE RIGHT OF THE FRENCH TO BE ADDRESSED IN THEIR OWN TONGUE THE MEASURE BANS FOREIGN WORDS IN SEMINARS WORK CONTRACTS PUBLIC ANNOUNCEMENTS ADS AND MOST RADIO AND TELEVISION BUT EXEMPTS ANYONE SELLING FRENCH GOODS ABROAD TWO EXECUTIVES OF THE ROMANIAN FOREIGN TRADE BANK THE COUNTRY'S BESTCAPITALIZED BANK WERE ARRESTED ON BRIBERY CHARGES POLICE SAID THE OFFICIALS WERE ACCUSED OF TAKING PAYMENTS TO FAVOR COMPANIES' LOANS AND OTHER BANKING NEEDS A FORMER PRESIDENT OF THE BANK SAID IMPORTERS HAD TRIED TO PRESSURE THE BANK TO APPROVE HUNDREDS OF MILLIONS OF DOLLARS OF LOANS TO IMPORT WHEAT AND OIL THE VALUES OF HONG KONG OFFICES AND LUXURY RESIDENCES CONTINUE TO RISE RAPIDLY PROPERTY CONSULTANTS JAMES LANG WOOTTON CITED TIGHT SUPPLY AND STRONG DEMAND LOW INTEREST RATES AND EXPECTATIONS OF HIGHER INFLATION AND RENTAL GROWTH OFFICE PRICES AVERAGE 1740 A SQUARE FOOT IN THE CENTRAL DISTRICT WHERE RENTS HAVE JUMPED 23 THIS YEAR AND THE VACANCY RATE SHRANK THIS MONTH TO 3 FROM 6 IN DECEMBER RESIDENTIAL PRICES HAVE SOARED 95 IN 12 MONTHS WITH APARTMENTS AVERAGING 1295 A SQUARE FOOT AND HOUSES 1550 RENTS FOR LUXURY UNITS AVERAGE 5 A SQUARE FOOT VIETNAM INAUGURATED THE LAST OF EIGHT TURBINES AT ITS LARGEST HYDROELECTRIC POWER PLANT COMPLETING 15 YEARS OF WORK ON THE HOA BINH OR PEACE DAM ON THE BLACK RIVER 37 MILES SOUTHWEST OF HANOI BUILT WITH AID FROM THE FORMER SOVIET UNION AND FROM RUSSIA THE 1920MEGAWATT PLANT BEGAN OPERATING IN 1988 AND GENERATES AT LEAST 45 OF THE NATION'S ELECTRICITY SUPPLYING THE NORTH AND SOME CENTRAL PROVINCES A POWER LINE NOW BEING TESTED WILL SEND ELECTRICITY TO THE SOUTH INCLUDING THE ECONOMIC CENTER OF HO CHI MINH CITY SATELLITE DISHES TO CAPTURE TELEVISION SIGNALS ARE SPROUTING LIKE MUSHROOMS IN TIRANA CAPITAL OF ALBANIA EUROPE'S POOREST COUNTRY IN A MARKET THAT DIDN'T EXIST LESS THAN TWO YEARS AGO AN ESTIMATED 25000 DISHES HAVE BEEN SOLD EVEN THOUGH THE EQUIPMENT IS PRICED BETWEEN 180 AND 210 OR MORE THAN THREE TIMES THE AVERAGE MONTHLY WAGE TO GET HIS DISH HOME ONE CUSTOMER STRAPPED IT TO THE BACK OF HIS DONKEY ANALYSTS SAID THE PROLIFERATION OF THE GEAR DOESN'T INDICATE A HEALTHIER ECONOMY RATHER IT ILLUSTRATES ALBANIA'S DIRE LACK OF OTHER LEISURE SERVICES TWO USFUNDED STATIONS RADIO FREE EUROPE AND RADIO LIBERTY ACCEPTED AN OFFER FROM THE CZECH REPUBLIC TO MOVE TO PRAGUE FROM MUNICH GERMANY WHERE THEY WERE SET UP IN THE 1950S TO BROADCAST TO THE FORMER SOVIET BLOC WITH THEIR BUDGETS SLASHED SINCE THE END OF THE COLD WAR THE RADIOS HAVE ALREADY SHUT THEIR HUNGARIAN BROADCASTING SECTION THEY PLAN TO TURN THEIR CZECH AND POLISH SECTIONS INTO INDEPENDENT SERVICES IN PRAGUE AND WARSAW TALKS WILL BEGIN SOON ON A CZECH PROPOSAL TO HOUSE RADIO FREE EUROPE AND RADIO LIBERTY WHICH HAVE 1500 EMPLOYEES IN THE FORMER CZECHOSLOVAK FEDERAL PARLIAMENT BUILDING UNUSED SINCE THE FEDERATION SPLIT INTO THE CZECH AND SLOVAK REPUBLICS 16 MONTHS AGO CHINESE GOVERNMENT ECONOMISTS PREDICTED THE ECONOMY WILL GROW A FASTERTHANPREFERRED 115 THIS YEAR GOOD NEWS FOR ATTRACTING FOREIGN INVESTMENT BUT BAD NEWS FOR CONTROLLING INFLATION A JUDGE IN CORTONA ITALY UPHELD A 1993 RULING THAT A MAN WHO ASKED A YOUNG TOURIST FOR A KISS IN 1991 HADN'T COMMITTED AN OFFENSE THE RULING ON THE PROSECUTION'S APPEAL STATED IF WE HAD TO JUDGE EVERYBODY WHO PAID SOMEONE AN UNWANTED COMPLIMENT JUSTICE WOULD GRIND TO A HALT 9404180090 940418 ABREAST OF THE MARKET MANAGERS SIFT THROUGH DEBRIS THINK THEY HAVE FOUND BARGAINS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL ROOTING AROUND FOR BEATUP STOCKS IN THE MARKET RUBBLE CAN TURN UP SOME REAL GEMS THESE DAYS THAT'S WHAT MONEY MANAGERS ARE FINDING AS THEY SURVEY THE LANDSCAPE LEFT BY THE MARKET'S RECENT DOWNTURN AS OFTEN HAPPENS IN PUNISHING SLUMPS SOME STOCKS AND ENTIRE SECTORS ARE KNOCKED FAR BELOW REASONABLE LEVELS BASED ON THE UNDERLYING FUNDAMENTALS ONCE THESE VALUES ARE RECOGNIZED BY INVESTORS RENEWED BUYING ENSUES SOME ANALYSTS THINK THAT THE BUYING OF EXCESSIVELY BATTERED STOCKS WILL PROVIDE A SAFETY NET FOR THE OVERALL MARKET RESTRAINING ANY FURTHER STEEP DECLINES AND EVEN POSSIBLY CONTRIBUTING TO A RALLY YOU HAVE TO STEP BACK AND SAY SURE THE MARKETS HAVE BEEN VOLATILE BUT THE UNDERLYING FUNDAMENTALS HAVEN'T CHANGED MUCH SAYS ROBERT A VON PENTZ CHIEF INVESTMENT OFFICER AT RIGGS INVESTMENT MANAGEMENT IN WASHINGTON STOCKS THAT ARE SENSITIVE TO THE IMPROVING ECONOMY HAVE SUFFERED THE MOST IN THE PAST TWO MONTHS OF SLIDING PRICES THAT'S BECAUSE THOSE ISSUES HAD ALREADY POSTED STRONG GAINS BEFORE THE STOCK MARKET CORRECTION BEGAN NERVOUS INVESTORS SOLD THEM FIRST AS THE SLUMP DEVELOPED TO LOCK IN THEIR PROFITS BUT MANY ANALYSTS BELIEVE THAT WHAT MADE THOSE STOCKS ATTRACTIVE BEFORE STILL MAKES THEM ATTRACTIVE NOW THE ECONOMY IS ON TRACK FOR STEADY GROWTH EVEN WITH THE RECENT RISE IN INTEREST RATES MR VON PENTZ EXPECTS THE IMPROVING ECONOMY TO BOOST THE EARNINGS OF SUCH DEPRESSED STOCKS AS AUTOS AND FOREST PRODUCTS AFTER CLIMBING 215 AND 148 RESPECTIVELY IN THE FOURTH QUARTER OF 1993 AUTOS AND FOREST PRODUCTS HAVE SLUMPED 126 AND 192 SINCE STOCKS BEGAN THEIR SLIDE AFTER THE FIRST FEDERAL RESERVE INTERESTRATE BOOST ON FEB 4 I WOULD STEP UP AND BUY A FOREST PRODUCTS COMPANY LIKE WEYERHAEUSER HERE MR VON PENTZ SAID WEYERHAEUSER HAS PLUNGED 153 SINCE THE FED ACTION BUT MR VON PENTZ POINTS OUT THAT INVESTORS REMAIN SO JITTERY IN THE RISING INTERESTRATE ENVIRONMENT THAT EVEN VERY GOOD EARNINGS CAN PRODUCE DISAPPOINTMENTS IN STOCK PRICE PERFORMANCE WITNESS THE 154 DECLINE IN MOTOROLA LAST WEEK AFTER THE COMPANY'S STRONG EARNINGS FELL SHORT OF ANALYSTS' FORECASTS EVEN MEETING OR SURPASSING ANALYSTS' EARNINGS EXPECTATIONS CAN KNOCK A STOCK LOWER MAYBELLINE SCHWAB AND CLAYTON HOMES ALL FELL LAST WEEK ON THE DAY THEY REPORTED ONTARGET OR BETTERTHANEXPECTED EARNINGS INVESTORS ARE FOCUSING MORE AND MORE INTENTLY ON THE STRENGTH OF EARNINGS MR VON PENTZ SAYS DESPITE THE CONCERNS ABOUT EARNINGS PERFORMANCE ANALYSTS STILL BELIEVE MANY ECONOMICALLY SENSITIVE STOCKS WILL PRODUCE PROFITS VIGOROUS ENOUGH TO BOOST PRICES JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ THINKS THAT STOCKS LINKED TO HOME BUILDING WILL POST A SHARP RECOVERY HE CONTENDS THAT THE FEARS ARE OVERBLOWN THAT A SLUMP IN HOME CONSTRUCTION WILL RESULT FROM HIGHER INTEREST RATES HISTORICALLY IT USUALLY TURNS OUT THAT HIGHER RATES CHOKE OFF NEW RESIDENTIAL ACTIVITY BUT I DON'T THINK IT'LL HAPPEN THIS TIME MR MCALINDEN SAYS IN FACT THE FEAR THAT RATES WILL GO HIGHER WILL BE A STIMULATIVE FACTOR IN THE SHORT TERM HE PREDICTS THAT BUYING OF HOME BUILDERS BUILDING MATERIALS HOUSEHOLD PRODUCTS AND FOREST PRODUCTS WILL HELP UNDERPIN A STOCK MARKET RALLY IN THE SUMMER THAT RALLY WILL FOLLOW ANOTHER DOWNTURN THIS MONTH AND NEXT MR MCALINDEN PREDICTS ECONOMICALLY SENSITIVE STOCKS WILL CONTRIBUTE DISPROPORTIONATELY TO THE UPSWING HE SAYS FOR THAT REASON THE DOW INDUSTRIALS COULD RALLY MUCH MORE STRONGLY THAN THE STANDARD & POOR'S 500 THE HOUSING THEME OFFERS A FEW ATTRACTIVE INDIVIDUAL STOCKS SAYS DAVID MCHUGH PORTFOLIO MANAGER AT NORTHERN INVESTMENT COUNSELORS A DIVISION OF NORTHERN TRUST OF CHICAGO HE LIKES THE CARPET MAKER SHAW INDUSTRIES AND ENGINEERING AND CONSTRUCTION FIRM FLUOR MR MCHUGH IS INTERESTED IN THESE ECONOMICALLY SENSITIVE STOCKS EVEN THOUGH HE IS A TRADITIONAL GROWTHSTOCK MANAGER WHO TENDS TO LOOK FOR STEADY EARNINGS GROWTH IN ALL ECONOMIC CLIMATES HOWEVER CURRENT CONDITIONS REQUIRE A CERTAIN FLEXIBILITY AMONG GROWTHSTOCK MANAGERS WE'RE TRYING TO CONCENTRATE MORE ON INDUSTRIALLY ORIENTED GROWTH STOCKS GOING FORWARD HE SAYS FREDRIC E RUSSELL A TULSA OKLA MONEY MANAGER WITH A COMPANY BEARING HIS NAME IS LOOKING FOR BEATENDOWN STOCKS THAT WILL BENEFIT NOT ONLY FROM US ECONOMIC GROWTH BUT FROM THE WORLDWIDE RECOVERY HE'S TARGETING INTERPUBLIC THE WORLD'S SECOND LARGEST ORGANIZATION OF ADVERTISING AGENCIES MR RUSSELL CONTENDS THAT THE COMPANY'S STRONG EXPOSURE OVERSEAS COUPLED WITH IMPROVING WORLD ECONOMIES WILL LIFT INTERPUBLIC'S EARNINGS THE GROUP'S GROWING PRESENCE IN DEVELOPING COUNTRIES RAISES THE PROSPECT OF FURTHER GROWTH AS THOSE ADVERTISING MARKETS EXPAND HE ADDS WITH INTERPUBLIC TRADING 176 BELOW ITS HIGH THIS YEAR YOU HAVE THE OPPORTUNITY TO BUY THE SAME COMPANY BUT AT A SHARP DISCOUNT MR RUSSELL SAYS ANOTHER STOCK MR RUSSELL THINKS WILL GAIN FROM OVERSEAS DEVELOPMENTS IS STATE STREET BOSTON HE ARGUES THAT THE COMPANY WILL BENEFIT FROM THE GROWTH OF RETIREMENT FUNDS THROUGHOUT THE WORLD STATE STREET SERVES AS CUSTODIAN AND RECORD KEEPER FOR MUTUAL FUNDS PUBLIC AND CORPORATE RETIREMENT FUNDS BANKS AND INSURANCE COMPANIES IT HAS MORE THAN A DOZEN FOREIGN OFFICES TO CAPITALIZE ON FINANCIAL MARKETS' EXPANSION OVERSEAS MR RUSSELL SAYS AFTER ITS 9 DECLINE SINCE EARLY FEBRUARY THE STOCK LOOKS QUITE ATTRACTIVE HE ADDS BEYOND STATE STREET MR RUSSELL IS UPBEAT ABOUT FINANCIALS AS A WHOLE WALL STREET IS CASTING AN UNWARRANTED CLOUD OVER THE FINANCIALS ARGUING THAT THE BULL MARKET FOR THIS GROUP IS OVER AND THE SHARES OF THESE COMPANIES WILL REMAIN DEPRESSED FOR A LONG PERIOD THE DOW JONES INDUSTRIAL AVERAGE SLIPPED INTO NEGATIVE TERRITORY AT THE CLOSE AMID SELLING LINKED TO OPTIONS EXPIRATIONS VOLUME ON THE BIG BOARD CLIMBED TO 3081 MILLION SHARES FROM 2746 MILLION THURSDAY DECLINING ISSUES OUTNUMBERED ADVANCERS 1108 TO 1029 FOR THE WEEK THE INDUSTRIAL AVERAGE LOST 1279 OR 035 THE S&P 500 SLIPPED 092 OR 021 THE BIG BOARD COMPOSITE FELL 063 OR 025 AND THE NASDAQ COMPOSITE TUMBLED 2074 OR 277 MOSTLY BECAUSE OF WEAK TECHNOLOGY STOCKS WORLDWIDE STOCK PRICES ROSE FRIDAY IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 052 TO 11368 BOTH THE STOCK AND BOND MARKETS RESPONDED ONLY MODESTLY TO A FEDERAL RESERVE REPORT ON FACTORY OPERATING RATES THE FED SAID UTILIZATION OF THE NATION'S FACTORIES ROSE 02 PERCENTAGE POINT TO 836 OF CAPACITY LAST MONTH MOSTLY IN LINE WITH EXPECTATIONS INVESTORS HAD FEARED A BIG GAIN IN THE NUMBER AS A PRECURSOR TO A PICKUP IN INFLATION TECHNOLOGY STOCKS WERE MIXED BUT SOME COMPUTER ISSUES TUMBLED AFTER A DISAPPOINTING EARNINGS REPORT FROM DIGITAL EQUIPMENT WHICH SLID 5 TO 23 7/8 THE COMPANY POSTED A FISCAL THIRDQUARTER LOSS OF 134 A SHARE MUCH GREATER THAN THE 23 CENTS A SHARE LOST A YEAR AGO ANALYSTS HAD FORECAST A 31CENT LOSS OTHER TECHNOLOGY STOCKS FELL MOTOROLA LOST 1 3/4 TO 89 7/8 APPLE COMPUTER DECLINED 1 1/4 TO 30 1/4 ON NASDAQ AND HEWLETTPACKARD SLIPPED 3/4 TO 78 1/8 WELLFLEET COMMUNICATIONS JUMPED 5 TO 70 ON NASDAQ THE COMPANY SAID ITS THIRDQUARTER EARNINGS ROSE TO 51 CENTS A SHARE FROM 24 CENTS THE INTERNETWORKING PRODUCTS COMPANY ALSO DECLARED A 2FOR1 STOCK SPLIT AMONG BLUE CHIPS JP MORGAN JUMPED 1 1/8 TO 63 5/8 NATWEST SECURITIES RAISED ITS RATING ON THE STOCK TO ACCUMULATE FROM HOLD THE BROKERAGE FIRM SAID ITS UPGRADE WAS AIMED AT INVESTORS BUILDING HOLDINGS FOR NEXT YEAR OIL STOCKS WERE THE STRONGEST ISSUES FOR A SECOND CONSECUTIVE DAY CRUDE OIL FOR MAY DELIVERY ROSE 35 CENTS TO 1658 A BARREL CHEVRON JUMPED 2 1/4 TO 90 5/8 TRITON ENERGY SURGED 3 1/4 TO 28 3/4 SEAGULL ENERGY WAS UP 2 3/8 TO 27 1/2 LASMO 3/8 TO 5 7/8 NOBLE AFFILIATES 1 3/4 TO 26 3/8 AND IMPERIAL OIL 5/8 TO 34 ON THE AMERICAN STOCK EXCHANGE CASINO STOCKS ROSE AFTER SALOMON BROTHERS INITIATED COVERAGE ON SOME WITH BUY RATINGS CAESARS WORLD ADDED 2 1/4 TO 45 1/2 MIRAGE RESORTS 1 1/2 TO 20 5/8 AND STATION CASINOS 2 TO 14 3/4 PHILLIPS PETROLEUM ROSE 2 TO 31 3/4 INVESTMENT BANK GAINES BERLAND SAID THE COMPANY IS IN TALKS WITH SEVERAL FOREIGN STATEOWNED OIL COMPANIES TO SELL PART OF ITS DOMESTIC REFINING AND MARKETING OPERATIONS PARKER HANNIFIN SURGED 3 1/8 TO 42 INGALLS & SNYDER ANALYST ALEXANDER BURTON UPGRADED THE STOCK TO ATTRACTIVE FROM NEUTRAL AND RAISED HIS FISCAL 1994 AND 1995 EARNINGS ESTIMATES ARMSTRONG WORLD INDUSTRIES CLIMBED 2 TO 54 1/8 THE FURNISHINGS COMPANY SAID IT EXPECTS FIRSTQUARTER OPERATING EARNINGS OF 85 CENTS A DILUTED SHARE COMPARED WITH 21 CENTS A YEAR EARLIER ALUMAX DROPPED 1 1/4 TO 22 1/2 GOLDMAN SACHS ANALYST AMY GASSMAN CUT THE STOCK'S RATING TO MARKET PERFORMER FROM MARKET OUTPERFORMER BASED ON EXPECTATIONS OF WEAK ALUMINUM PRICES IN THE SHORT TERM PRECIOUS METALS TURNED IN THE WORST PERFORMANCE ON WEAKER GOLD PRICES NEWMONT MINING LOST 1 3/4 TO 50 1/8 HOMESTAKE MINING 7/8 TO 18 7/8 AND ASA 3/4 TO 39 ALEXANDER BLANTON IS AN ANALYST AT INGALLS & SNYDER HIS NAME WAS GIVEN INCORRECTLY IN YESTERDAY'S ABREAST OF THE MARKET COLUMN 9404180089 940418 DENMARK CONSUMER CONFIDENCE COPENHAGEN DENMARK'S MARCH CONSUMER CONFIDENCE INDEX FELL SLIGHTLY TO PLUS FIVE INDEX POINTS COMPARED WITH PLUS SIX INDEX POINTS FOR FEBRUARY ACCORDING TO DANMARKS STATISTIK THE DANISH NATIONAL STATISTICS AGENCY MARCH'S LOWER FIGURE INDICATES A SLIGHTLY LESS OPTIMISTIC ATTITUDE IN THE POPULATION COMPARED WITH THE PREVIOUS MONTH THE AGENCY SAID HOWEVER COMPARED WITH JANUARY'S INDEX CONSUMERS ARE STILL SIGNIFICANTLY MORE OPTIMISTIC BOTH ABOUT THEIR OWN SITUATION AND THE NATION IN GENERAL THAN AT THE START OF THE YEAR POSITIVE FIGURES IN THE INDEX INDICATE OPTIMISM WHILE NEGATIVE FIGURES INDICATE PESSIMISM 9404180088 940418 WORLD MARKETS RENEWED OPTIMISM ABOUT LOWER RATES BOOSTS EUROPEAN BOURSES LONDON SHARES RALLY 12 A WALL STREET JOURNAL NEWS ROUNDUP WITH RENEWED OPTIMISM ABOUT THE OUTLOOK FOR LOWER INTEREST RATES EUROPEAN BOURSES POSTED GAINS FRIDAY LONDON STOCKS RALLIED 12 FOLLOWING GERMANY'S CUTS THE PREVIOUS DAY IN TWO KEY RATES FRANKFURT SHARES WERE MIXED TO HIGHER THOUGH THEY ENDED OFF HIGHS BECAUSE OF SOFT GOVERNMENTBOND FUTURES PARIS STOCKS CLIMBED 1 TOKYO SHARES PUT IN A STRONG PERFORMANCE AS MARKET SENTIMENT IMPROVED ON A COMBINATION OF POSITIVE FACTORS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11368 UP 052 REFLECTING INCREASES IN MARKETS IN EUROPEAN AND ASIA/PACIFIC MARKETS AND A DROP IN MARKETS IN THE AMERICAS OILDRILLING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10831 UP 442 OR 426 WITH GLOBAL MARINE OF THE US POSTING A 69 GAIN IN ITS LOCAL CURRENCY NONDURABLEHOUSEHOLDPRODUCTS STOCKS TRAILED AT 11056 DOWN 182 OR 162 WITH KIMBERLYCLARK OF THE US SLIDING 252 IN ITS LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX JUMPED 366 POINTS TO 31683 JUST A FRACTION BELOW THE INTRADAY HIGH 82 ISSUES ADVANCED AND 15 RETREATED THE FT 30STOCK INDEX ADVANCED 294 POINTS ALSO 12 TO 25071 VOLUME WAS 6987 MILLION SHARES COMPARED WITH 6297 MILLION SHARES A DAY EARLIER STOCKS WERE BOOSTED BY NEWS THAT BRITISH INFLATION WAS WEAKER THAN EXPECTED IN MARCH AND WITH ECONOMIC ACTIVITY SLOWING A BIT THIS INDICATED THE BASE LENDING RATE COULD BE REDUCED FURTHER OPTIMISM GREW FOLLOWING THURSDAY'S REDUCTIONS IN TWO IMPORTANT INTEREST RATES BY THE GERMAN BUNDESBANK WHICH LED TO EASINGS BY OTHER EUROPEAN CENTRAL BANKS UNDERSCORING THE EXTENT TO WHICH THEIR SHORTTERM RATES ARE DECOUPLING FROM UPWARD RATE PRESSURE IN THE US STILL THE LONDON STOCK MARKET ALSO GOT A LATE BOOST FROM DATA SHOWING THAT US INDUSTRIAL PRODUCTION AND CAPACITY USE FOR MARCH WERE WEAKER THAN EXPECTED VIEWED IN EUROPE AS SIGNS THAT US INFLATION IS UNDER CONTROL PERHAPS REINING IN ANY RUSH TO TIGHTEN CREDIT FURTHER IN FRANKFURT THE DAX 30STOCK INDEX ROSE 171 POINTS TO 220042 WITH 19 ISSUES HIGHER AND 9 LOWER THE SESSION OPENED OPTIMISTICALLY IN THE WAKE OF THE BUNDESBANK RATE REDUCTIONS BUT BUYING DRIED UP AND LEFT THE MARKET VULNERABLE TO SOFT GERMAN BUND FUTURES THE BOND MARKET HAS LED THE STOCK MARKET FOR WEEKS INVESTORS ALSO WORRIED ABOUT INTERESTRATE FANTASY OR EXPECTATIONS OF EASIER GERMAN CREDIT FOLLOWING THE BENCHMARKRATE CUTS AS ADDITIONAL REDUCTIONS PROBABLY WON'T COME FOR WEEKS OR MONTHS BANKING SHARES SOFTENED BECAUSE OF EXPOSURE IN THE FAILURE OF A BIG GERMAN PROPERTY DEVELOPMENT FIRM IN PARIS A LATE RALLY HELPED SHARES TO SCORE A 1 GAIN AMID GROWING EXPECTATIONS THAT FRANCE WILL EASE CREDIT POLICY TODAY IN THE WAKE OF OTHER EUROPEAN RATE CUTS IN AMSTERDAM PRICES ENDED MIXED TO HIGHER AFTER AN OPTIONSEXCHANGE EXPIRATION BOOSTED TURNOVER ON THE STOCK EXCHANGE PROFESSIONAL INVESTORS BOUGHT TO COVER SHORT OR OVERSOLD POSITIONS IN MOST BLUE CHIPS IN MILAN SHARES ROSE IN HEAVY TRADING BUT ENDED SIGNIFICANTLY OFF HIGHS AS ITALIAN POLITICAL UNCERTAINTY CHILLED ENTHUSIASM FOR EQUITIES A BIT REPORTS OF PROBLEMS IN FORMING A NEW GOVERNMENT ERODED STOCKS' GAINS AND PROVIDED AN EXCUSE TO TAKE SOME PROFITS AFTER THREE WEEKS OF IMPRESSIVE GAINS BUT IN MADRID STOCKS FELL ON POSSIBLE SPANISH POLITICAL INSTABILITY STEMMING FROM A CORRUPTION SCANDAL SPECULATION ABOUT GOVERNMENT OFFICIALS' RESIGNATIONS WAS UNLEASHED BY ACCUSATIONS OF TAX FRAUD AND INSIDER TRADING AGAINST A FORMER BANK OF SPAIN GOVERNOR IN STOCKHOLM SHARES FELL BECAUSE OF CONCERNS ABOUT HIGHER SWEDISH INTEREST RATES THURSDAY'S GERMAN RATE CUTS RAISED HOPES THE SWEDISH CENTRAL BANK WOULD FOLLOW SUIT BUT IT DIDN'T IN ZURICH THOUGH STOCKS ROSE IN A DELAYED REACTION TO A SWISS RATE CUT THURSDAY AS WELL AS TO THE US ECONOMIC DATA THAT HELPED EASE ANXIETY ABOUT US RATE BOOSTS THE MARKET WAS SPURRED VARIOUSLY BY FRESH BUYING BY PUBLIC PENSION FUNDS AND FOREIGN INVESTORS THE JAPANESE YEN'S MOVEMENTS IN CURRENCY MARKETS A STABLETOHIGHER JAPANESE DEBT MARKET AND A POSITIVE RESPONSE TO THE POLITICAL SITUATION IN EFFORTS TO FORM A NEW JAPANESE GOVERNMENT NEW PUBLIC FUNDS WERE RELEASED TO TRUST BANKS FRIDAY AS PART OF THE GOVERNMENT'S FISCAL INVESTMENT AND LOAN PROGRAM WHICH TAKES PUBLIC POSTAL SAVINGS AND INSURANCE ASSETS AND INVESTS THEM IN STOCKS IN SYDNEY SHARES FELL AFTER WEAKENING STEADILY IN QUIET TRADING BEFORE BOUNCING BACK A LITTLE NEAR THE CLOSE BANKING AND TRANSPORTATION ISSUES LOST GROUND PRICES WERE PRESSURED BY WEAK STOCKINDEX FUTURES AND NERVOUSNESS AHEAD OF THE RELEASE OF THE US ECONOMIC DATA IN HONG KONG STOCKS DROPPED IN EXTREMELY SLOW TRADING WITH EXPECTATIONS OF HIGHER US INTEREST RATES HELPING TO DAMP SENTIMENT ABOUT PROPERTY COMPANIES HEAVILY WEIGHTED IN THE MAIN INDEX THESE ISSUES ALSO WERE DEPRESSED BECAUSE OF FEARS INVESTMENT COULD BE DRIVEN AWAY BY THE HONG KONG GOVERNMENT'S GOAL TO REDUCE PROPERTY PRICES IN SINGAPORE PRICES FINISHED LOWER IN THIN DEALINGS AMID PROFITTAKING AND WARINESS BECAUSE OF A REPORT THAT THE US WAS CONSIDERING RAISING INTEREST RATES BUT IN KUALA LUMPUR SHARES CLIMBED 12 ON LIGHT VOLUME WITH PRICES BUOYED BY A LATE BUYING WAVE AND SOME BARGAINHUNTING RUMORS THAT THE MALAYSIAN GOVERNMENT WOULD SOON ANNOUNCE GENERAL ELECTIONS HELPED SPUR SOME SPECULATIVE BUYING IN TAIPEI THE MARKET RALLIED 24 ON FRIDAY IN HEAVY TRADING WITH GAINS ACROSS THE BOARD AS INVESTORS WERE HEARTENED BY A STOCK DIVIDEND BY THREE BIG TAIWAN STATERUN BANKS BUYERS ALSO SHOWED RENEWED INTEREST IN BLUECHIP TEXTILE ISSUES ON SATURDAY TAIPEI STOCKS RETREATED SLIGHTLY ON PROFITTAKING IN SEOUL ON FRIDAY SHARES ROSE ON CORPORATE NEWS OF AN EXPECTED EQUITY BUYBACK AND IMPROVED EARNINGS IN BANGKOK EQUITIES RALLIED 35 AS THAI MUTUAL FUNDS AND LONGTERM INVESTORS BOUGHT LARGECAPITALIZATION STOCKS ESPECIALLY IN COMMUNICATIONS FINANCE AND BANKING 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 9404180087 940418 LETTERS TO THE EDITOR IMMIGRATION ASK THE NATIVES IF IT HURTS RICHARD VEDDER'S MARCH 28 EDITORIALPAGE OFFERING IMMIGRATION DOESN'T DISPLACE NATIVES EXAMINED ONLY A SUPERFICIAL ASPECT OF A DEEP AND COMPLEX ISSUE BY LIMITING THE SCOPE OF HIS COMMENTS TO UNEMPLOYMENT THE AUTHOR EFFECTIVELY DODGED THE MORE SERIOUS QUESTIONS THAT SOME OF MY FELLOW GOVERNORS AND I HAVE ASKED THE FEDERAL GOVERNMENT RECENTLY IN FLORIDA WE ARE VERY PROUD OF OUR IMMIGRANT HERITAGE AND WE COUNT THE DIVERSITY OF OUR PEOPLE AMONG OUR GREATEST STRENGTHS FOREIGNBORN RESIDENTS HAVE MADE SIGNIFICANT CONTRIBUTIONS TO EVERY ASPECT OF OUR LIVES FROM BUSINESS TO POLITICS TO THE ARTS THE GREAT MAJORITY ARE HERE LEGALLY BUT MORE THAN 345000 ARE HERE IN DIRECT VIOLATION OF FEDERAL LAW WHILE THESE FOLKS MAY OR MAY NOT DISPLACE NATIVES IN THE WORKPLACE THEY CERTAINLY COMPETE FOR CRITICAL STATE SERVICES SUCH AS HEALTH CARE AND EDUCATION IN ADDITION CRIMINAL ALIENS NOW OCCUPY MORE THAN 4100 SPACES IN OUR STATEPRISON SYSTEM THE RESULTING COST OF ILLEGAL IMMIGRATION TO FLORIDA'S TAXPAYERS WAS MORE THAN 884 MILLION IN 1993 THE ISSUE HERE IS NOT WHETHER WE WILL PROVIDE SERVICES FOR THESE PEOPLE WE WILL CONTINUE TO FEED OUR CHILDREN CARE FOR OUR SICK AND LOCK UP CRIMINALS REGARDLESS OF THEIR CITIZENSHIP OR NATIONALITY WE WILL DO THAT BECAUSE IT'S THE RIGHT THING TO DO HOWEVER IMMIGRATION POLICY IS THE EXCLUSIVE DOMAIN OF THE FEDERAL GOVERNMENT THE STAGGERING COSTS BROUGHT ON BY THAT POLICY OR THE FAILURE TO ENFORCE IT ALSO SHOULD BE THE RESPONSIBILITY OF THE FEDERAL GOVERNMENT WE SIMPLY DON'T WANT TO PAY WASHINGTON'S BILLS ANY LONGER THE FEDERAL GOVERNMENT MUST ADOPT REASONABLE AND ENFORCEABLE IMMIGRATION LAWS PROVIDE THE NECESSARY RESOURCES TO UPHOLD THOSE LAWS AND REIMBURSE THE STATES WHEN ENFORCEMENT FALLS SHORT IMMIGRATION DOESN'T DISPLACE NATIVES SURELY YOU JEST SELDOM HAVE I SEEN SUCH A CONVOLUTED ANALYSIS WHY DON'T WE SIMPLY ASK HOW MANY JOBS THE US LABOR DEPARTMENT EXPECTS TO CREATE IN THE 1990S ANSWER 18 MILLION THEN WHY DON'T WE ASK IN A SOCIETY THAT HAS 35 MILLION YOUNG PEOPLE WHO WILL TURN 18 IN THE 1990S THREEQUARTERS OF WHOM WILL ENTER THE LABOR MARKET AND THAT EXPECTS TO CREATE 18 MILLION JOBS DOES IT MAKE SENSE TO BRING IN 13 MILLION IMMIGRANTS IN MY 12 YEARS AS GOVERNOR OF COLORADO I FELT IMMIGRATION MADE OUR UNEMPLOYMENT WORSE PARTICULARLY UNEMPLOYMENT IN THE UNSKILLED WORK FORCE NOT HAVING SOLVED THE PROBLEM OF OUR OWN UNDERCLASS IMMIGRATION IS GIVING US A SECOND UNDERCLASS AND A MORE BALKANIZED DIVIDED SOCIETY IN THE PAST IMMIGRATION HAS BEEN GOOD FOR AMERICA BUT I SUGGEST IT IS NOW MAKING OUR PROBLEMS WORSE NOT BETTER THINGS ARE HARD TO PROVE IN SCIENCE AND MORE SO IN SOCIAL POLICY ONE OF THE MOST COMMON RESULTS OF A STUDY IS TO SHOW THAT NO STATISTICALLY SIGNIFICANT RELATIONSHIP WAS FOUND AND THEN TO ASSUME THAT NO SIGNIFICANT RELATIONSHIP EXISTS EXAMPLES ABOUND BECAUSE FIRST STUDIES OF A QUESTION FREQUENTLY LACK ADEQUATE DATA POOL TOO MANY VARIABLES OR MAKE BIASED DECISIONS DOES SMOKING CAUSE LUNG CANCER DOES BURNING PVC PRODUCE DIOXINS PROPER ANALYSIS USUALLY COMES LATER AND OFTEN IS TOO LATE FOR SETTING POLICY CAREFUL THOUGHT AND RATIONAL DISCUSSION FREQUENTLY DO A BETTER JOB UNTIL THE FINAL NUMBERS ARE IN MY GRANDFATHER CAME TO THE US FROM THE UKRAINE IN THE EARLY PART OF THIS CENTURY HE FOUND EMPLOYMENT LAYING BRICKS WHEN THERE WERE DOZENS OF APPLICANTS FOR EACH JOB HE CLAIMED EXPERIENCE WHEN HE HAD LITTLE HE WORKED EXTRA TIME FOR NO PAY HE ACCEPTED A VERY LOWPAYING DIFFICULT JOB BECAUSE HE NEEDED IT BADLY TO BUY FOOD HE TOOK A JOB THAT A NATIVE COULD HAVE DONE AND MANY HAD APPLIED FOR NATURALLY SUCH IMMIGRANTS TRAVELED TO WHERE THE DEMAND WAS THE HIGHEST MY GRANDFATHER TRAVELED FROM NEWARK NJ TO GARY IND AND BECAME A STEELWORKER I AM SURE THAT A POWERFUL REGRESSION MODEL WOULD FIND THAT UNEMPLOYMENT WAS LOW IN THE PLACES TO WHERE IMMIGRANTS MIGRATED IS THIS A SURPRISE MOST IMMIGRANTS DO NOT HAVE A CHOICE BETWEEN WORKING AND WELFARE OR UNEMPLOYMENT COMPENSATION GO TO A NONNATIVE RESTAURANT IN A COLLEGE TOWN AND SEE HOW MANY STUDENT VISA EMPLOYEES ARE WORKING FOR SUBMINIMUM WAGE THE STUDIES THAT MR VEDDER REPORTS ON ARE INTERESTING AND WORTH PURSUING BUT DRAWING CONCLUSIONS AND PROPOSING POLICY CHANGES WILL TAKE MORE TIME AND EFFORT WELFARE REFORM AND MAINTAINING A MIDDLE CLASS ARE ALSO IMPORTANT AS IS PROVIDING OTHERS THE OPPORTUNITIES OUR FOREFATHERS HAD IN COMING TO THIS COUNTRY 9404180086 940418 FORM + FUNCTION BY JOHN PIERSON FOR PEOPLE WHO HAVE FINISHED CLEANING OUT THEIR CLOSETS HERE'S ANOTHER CHALLENGE THE MAILBOX MAILBOX CLUTTER AND DISARRAY IS SERIOUS BUSINESS TO THOMAS WORDEN OF KNOXVILLE TENN NEWSPAPERS LOOK MESSY HANGING OFF MAILBOXES IN PLASTIC BAGS SAYS MR WORDEN A RECENTLY RETIRED ARCHITECT AT THE TENNESSEE VALLEY AUTHORITY AND TIME IS WASTED WHEN DELIVERY PEOPLE HAVE TO LEAVE PARCELS ON THE FRONT PORCH RATHER THAN AT CURBSIDE MR WORDEN HAS DESIGNED A DEVICE CALLED THE ONESTOP CURBSIDE DELIVERY SYSTEM WHICH LOOKS LIKE A MINIATURE BUCKINGHAM PALACE GUARDHOUSE ONESTOP BREAKS GROUND BY COMBINING THREE FUNCTIONS UNDER ONE ROOF US MAIL ON TOP NEWSPAPERS AND OTHER DIRECT MAIL IN THE MIDDLE AND PACKAGES ON THE BOTTOM OTHER SYSTEMS COMBINE ONLY MAIL AND PAPERS THE THREEINONE DEVICE WHICH HAS YET TO BE MANUFACTURED WOULD BE MADE OF HIGHIMPACT VANDALRESISTANT PLASTIC AND MEASURE 54 INCHES TALL 24 INCHES DEEP AND 12 INCHES WIDE IT WOULD INITIALLY BE AVAILABLE IN DARK GREEN OR WHITE AND IS DESIGNED TO BE BOLTED TO A CONCRETE SLAB A FLAP FOR INSERTING MAIL WITHOUT OPENING THE MAILBOX DOOR SAVES 12 SECONDS PER STOP SAYS MR WORDEN A CARRIER WITH A TYPICAL SUBURBAN MAIL ROUTE WOULD SAVE 8800 OF TIME A YEAR HE ADDS ONESTOP HAS TWO OPTIONAL FEATURES A RADIO SIGNAL THAT ALERTS THE HOMEOWNER WHEN THE MAIL DOOR IS OPENED AND THREE LOCKABLE DOORS FOR MAIL PACKAGES AND PAPERS THE RADIOSIGNAL DEVICE COULD BE USED IN ANY MAILBOX THE DESIGNER HOPES HIS ONESTOP WILL REPLACE MANY OF THE BEEHIVE BRICK STRUCTURES THAT SOME SUBDIVISIONS SAY MUST ENCLOSE MAILBOXES AND PAPER TUBES THE ONESTOP'S PRICE 300 TO 350 THAT'S LESS THAN THE 500 THAT JAMES LABORDE A NASHVILLE BUILDER SAYS HE CHARGES TO CONSTRUCT A BRICK ENCLOSURE MR LABORDE CALLS THE ONESTOP PRETTY SLICK DESIGNERS HAVE DESIGNS ON THE WHITE HOUSE ALMOST EVERYONE WISHES THEM LUCK BEING DRAFTED AT THE NATIONAL ENDOWMENT FOR THE ARTS IS A PROPOSAL TO HAVE PRESIDENT CLINTON CREATE A WHITE HOUSE COUNCIL ON DESIGN IT WOULD BE HEADED BY VICE PRESIDENT AL GORE AND INCLUDE VOLUNTEERS FROM BUSINESS GOVERNMENT EDUCATION AND DESIGN THE GROUP WOULD BE RESPONSIBLE FOR PREPARING A YEARLY REPORT ON THE STATE OF DESIGN IN THE US PROMOTING COOPERATION BETWEEN GOVERNMENT AND THE PRIVATE SECTOR AND HELPING THE PRESIDENT CHOOSE THE RECIPIENTS OF ANNUAL AWARDS FOR DESIGN INNOVATION ITS CREATORS SAY THE COUNCIL COULD BE RUN WITH LITTLE OR NO NEW FUNDING DESIGNERS SEEM TO FAVOR THE WHITE HOUSE COUNCIL YOU NEED SOMEONE ROAMING THE HALLS MAKING SURE DESIGN IS ON PEOPLE'S MINDS SAYS BOSTON DESIGNER TOM HARDY KATHERINE MCCOY COCHAIRWOMAN OF THE DESIGN DEPARTMENT AT CRANBROOK ACADEMY OF ART BLOOMFIELD HILLS MICH SAYS THAT GIVEN THE COUNTRY'S TRADITION OF GOVERNMENT KEEPING ITS HANDS OFF BUSINESS SHE'S VERY GRATEFUL TO GET THE ATTENTION OF THE EXECUTIVE BRANCH FOR DESIGN THAT WORRIES BILL HANNON ANOTHER BOSTON DESIGNER AND PROFESSOR OF DESIGN AT MASSACHUSETTS COLLEGE OF ART AT BEST SAYS MR HANNON A WHITE HOUSE COUNCIL WOULD BE A WASTE OF TIME AND MONEY WHAT'S NEEDED INSTEAD HE ADDS IS A GRASSROOTS EFFORT LIKE THE DEPARTMENT OF AGRICULTURE'S AGRICULTURAL EXTENSION PROGRAM TO TEACH SMALL COMPANIES THE IMPORTANCE OF DESIGN IN COMPETING IN GLOBAL MARKETS CALL IT THE EGGHEAD'S EGG BOX PRODUCED BY THE MILLIONS EGG CARTONS AND FASTFOOD TRAYS ARE PLAIN AND SIMPLE NOW COMES MOULDED FIBRE TECHNOLOGY OF WESTBROOK MAINE WITH A PROCESS FOR TURNING THE EGG CARTON'S RAW MATERIAL NEWSPAPER INTO A STRONGER CONTAINER THAT PROVIDES MORE COMPLICATED INTERIORS AND STEEPER WALLS THE RESULT A PACKAGE THAT IS MORE PRECISE THAN AN EGG CARTON AND LESS EXPENSIVE FOR CERTAIN APPLICATIONS THAN PLASTIC FOAM OR CORRUGATED FIBERBOARD MADE FROM WASTE PAPER MOLDED FIBER HAS IN THE PUBLIC'S MIND AN ENVIRONMENTAL LEG UP ON PLASTIC PACKAGING BUT IT IS MONEY THAT DRIVES SHIPPERS TO SWITCH TO HIGHTECH EGG CARTONS THE GREENEST THING YOU CAN SAVE IS CASH SAYS LESLIE LINDSAY A PACKAGING ENGINEER AT APPLE COMPUTER APPLE SHIFTED FROM A TWOPIECE CORRUGATED PACKAGE TO A MOLDED FIBER TRAY TO HOLD PLUGS CORDS A POWER ADAPTER AND OTHER ACCESSORIES THAT GO INSIDE THE SHIPPING CARTON CONTAINING THE POWERBOOK DUO COMPUTER MS LINDSAY SAYS RIGID FOAM IS TOO THICK AND EVERY MILLIMETER OF SPACE IS PRECIOUS TO ME AND COMPARED WITH THE CORRUGATED VARIETY SHE SAYS MOLDED FIBER SAVES AS MUCH AS 294 PER CARTON US ROBOTICS REDUCED THE COST OF ITS MODEM PACKAGE BY 75 WHEN IT REPLACED CORRUGATED WITH MOLDED FIBER AND JOHNSON & JOHNSON SWITCHED TO A MOLDEDFIBER CARTON FOR ITS BLOODGLUCOSE MONITOR TO MAKE THE REQUIRED SMOOTH WHITE PACKAGE MOULDED FIBRE TECHNOLOGY MOLDS SURPLUS PULP AND BAKES IT THE CORRUGATED INDUSTRY IS TIPPING ITS HAT TO MOLDED FIBER BOB STAFFEN A SALESMAN FOR COLORADO CONTAINER THE COMPANY THAT ONCE MADE THE ACCESSORY BOX FOR THE POWERBOOK DUO SAYS FIBER IS PUT TO A GOOD USE FOR CERTAIN INNER PACKAGES BUT CORRUGATED FIBERBOARD IS SUPERIOR FOR OUTER SHIPPING BOXES AND FOR INNER BOXES THAT REQUIRE FINE PRINTING MR STAFFEN SAYS 9404180085 940418 DRUG MAKERS SEEN POSTING WEAK GROWTH FIRST QUARTER'S PROFIT ILLS SOFT SALES WORLDWIDE PRICING WOES AND TAXES BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL PHARMACEUTICAL COMPANIES' FIRSTQUARTER EARNINGS ARE EXPECTED TO SHOW ANEMIC GROWTH OF 2 TO 3 REFLECTING PRICING PRESSURES FROM MANAGED CARE A REDUCTION IN AN IMPORTANT TAX BREAK AND WEAK SALES IN SOME INTERNATIONAL MARKETS BUT MORE IMPORTANT THAN THE SHORTTERM RESULTS THE RESULTS MAY YIELD KEY CLUES ABOUT THE INDUSTRY'S PERFORMANCE FOR THE YEAR THE DEGREE OF PRICE DISCOUNTING IN 1994 CONTRACTS WITH MANAGEDCARE BUYERS WILL BEGIN TO SHOW UP IN FIRSTQUARTER RESULTS SAID KRISTINE BRYAN AN ANALYST AT SG WARBURG & CO A REDUCTION IN THE TAX BREAK FOR DRUG COMPANIES WITH MANUFACTURING FACILITIES IN PUERTO RICO IS EXPECTED TO HAVE REDUCED EARNINGS GROWTH BY ABOUT FOUR PERCENTAGE POINTS SAID KENNETH R NOVER AN ANALYST AT AG EDWARDS & SON IN ST LOUIS ALSO AFFECTING RESULTS WAS A SALES SLOWDOWN IN JAPAN AS BUYERS AWAITED THE GOVERNMENTIMPOSED PRICE CUT IN APRIL PHARMACEUTICAL PRICES IN JAPAN FELL 75 ON AVERAGE BUT CERTAIN CATEGORIES SUCH AS ANTIBIOTICS ANTIULCER DRUGS AND ANTIINFLAMMATORIES WERE HIT HARDER MS BRYAN SAID WEAKNESS IN THE ITALIAN MARKET AND NEGATIVE CURRENCY EFFECTS ALSO HURT EARNINGS ESTIMATES FOR PHARMACEUTICAL COMPANIES' EARNINGS VARY WIDELY AMONG ANALYSTS INDICATING THE UNCERTAINTY WROUGHT BY THE VAST MARKET CHANGES OF RECENT YEARS ANALYSTS SAID THE DEGREE OF DISCOUNTING TO MANAGEDCARE BUYERS ISN'T WIDELY KNOWN ANALYSTS SAID AND MERGERS AND ALLIANCES BETWEEN COMPANIES LAST YEAR FURTHER MUDDY FORECASTING AMONG THE MOST DIFFICULT TO PREDICT RESULTS FOR IS MERCK & CO OF WHITEHOUSE STATION NJ ANALYSTS AREN'T CERTAIN WHAT EFFECT MEDCO CONTAINMENT SERVICES INC ACQUIRED LATE LAST YEAR WILL HAVE ON THE COMPANY'S SALES AND PROFIT MS BRYAN IS PREDICTING FLAT EARNINGS AND MR NOVER SAID HE SEES A 2 DECLINE PFIZER INC OF NEW YORK IS EXPECTED TO POST A 6 TO 7 EARNINGS INCREASE WELL BELOW 20PLUS INCREASES OF THE PAST FEW YEARS I DON'T THINK THIS WILL BE A YEAR OF GROWTH MR BRYAN SAID BECAUSE THE COMPANY HAS COMPLETED MOST OF ITS MAJOR BUSINESS DIVESTITURES AND PRODUCT INTRODUCTIONS MOREOVER THE COMPANY HAS A HIGH EXPOSURE TO THE JAPANESE MARKET WHERE PRICES WILL BE CUT SHE SAID STEVEN B GERBER AN ANALYST AT OPPENHEIMER & CO SAID MUCH OF PFIZER'S PERFORMANCE DEPENDS ON SALES OF ITS HEART DRUG PROCARDIA XL RETAIL PRESCRIPTIONS OF THE DRUG WERE DOWN SLIGHTLY IN THE FIRST TWO MONTHS OF THE QUARTER ONE COMPANY THAT WILL POST STRONG GAINS IS MARION MERRELL DOW INC MR NOVER SAID BECAUSE IT HAD A LACKLUSTER FIRST QUARTER LAST YEAR THE COMPANY'S EARNINGS ROSE 19 HE ESTIMATED THE ONE BRIGHT SPOT IN THE INDUSTRY WILL BE SCHERINGPLOUGH CORP SAID MS BRYAN WHO ESTIMATED THE COMPANY'S EARNINGS ROSE 12 THE COMPANY'S ANTIHISTAMINE CLARITIN CONTINUES TO DO WELL SHE SAID BECAUSE IT IS A SUPERIOR PRODUCT THE COMPANY ALSO BENEFITED FROM THE MARKET WITHDRAWAL OF GENERIC COMPETITION TO ITS ASTHMA DRUG PROVENTIL 9404180084 940418 NORTHROP SAYS IT RECEIVED 934 OF GRUMMAN SHARES LOS ANGELES NORTHROP CORP SAID IT RECEIVED 934 OF GRUMMAN CORP'S TOTAL SHARES OUTSTANDING IN ITS 62ASHARE TENDER OFFER FOR THE BETHPAGE NY AEROSPACE COMPANY A TOTAL OF 328 MILLION GRUMMAN SHARES HAD BEEN TENDERED AS OF MIDNIGHT FRIDAY WHEN NORTHROP'S OFFER EXPIRED ACCORDING TO THE DEPOSITORY CHEMICAL BANK NORTHROP SAID IT WILL MOVE IMMEDIATELY TO COMPLETE THE 217 BILLION MERGER WHICH WILL COMBINE THE NATION'S SECONDLARGEST AND 12THLARGEST DEFENSE CONTRACTORS IN A COMPANY CALLED NORTHROP GRUMMAN CORP THE COMPANY'S CORE BUSINESS WILL BE SOCALLED RECONNAISSANCE STRIKE AND BATTLEMANAGEMENT SYSTEMS INVOLVING THE INTEGRATION OF WEAPONS LIKE NORTHROP'S B2 STEALTH BOMBER GRUMMAN'S AIRBORNE BATTLEFIELDSURVEILLANCE SYSTEMS AND ELECTRONICS AND NORTHROP'S PRECISION MUNITIONS NORTHROP OFFER BEAT OUT A RIVAL BID BY MARTIN MARIETTA CORP THAT WAS 7 A SHARE LESS ENDING A MONTHLONG BATTLE BETWEEN THE RIVAL SUITORS BETHESDA MDBASED MARTIN MARIETTA MADE ITS 55ASHARE OR 193 BILLION OFFER IN A NEGOTIATED AGREEMENT WITH GRUMMAN ON MARCH 7 WHICH NORTHROP TOPPED THREE DAYS LATER WITH A 60ASHARE OR 204 BILLION HOSTILE BID NORTHROP SWEETENED ITS OFFER TO 62 A SHARE EARLIER THIS MONTH MARTIN MARIETTA RECEIVED A 50 MILLION BREAKUP FEE FROM GRUMMAN UNDER TERMS OF ITS PRIOR AGREEMENT 9404180083 940418 BUSINESS BRIEF FIBREBOARD CORP POHLAD'S SWEETENED OFFER OF 45 A SHARE IS REJECTED FIBREBOARD CORP SAID IT REJECTED A SWEETENED OFFER OF 45 A SHARE FROM MINNESOTA FINANCIER CARL POHLAD SAYING THE COMPANY IS NOT FOR SALE THE COMPANY IN WALNUT CREEK CALIF WHICH MAKES BUILDING PRODUCTS AND OWNS SKI RESORTS HAS 42 MILLION SHARES OUTSTANDING GIVING THE BID AN INDICATED VALUE OF 189 MILLION THIS IS THE SECOND TIME FIBREBOARD HAS REBUFFED AN OFFER FROM MR POHLAD WHO HOLDS A 68 STAKE IN THE COMPANY IN MARCH FIBREBOARD REJECTED HIS BID OF 4250 A SHARE FIBREBOARD SAID ITS STRATEGY OF EXPANDING OUR CORE BUSINESS CONTINUES TO SHOW SUCCESS AND THAT A SALE AT THIS TIME ISN'T IN THE BEST INTERESTS OF SHAREHOLDERS IN THE FIRST QUARTER NET INCOME ROSE 17 TO 75 MILLION OR 166 A SHARE FROM YEAREARLIER NET OF 64 MILLION OR 149 A SHARE SALES GREW 15 TO 863 MILLION FROM 749 MILLION 9404180082 940418 MARKETING & MEDIA SINGAPORE EASES RESTRAINTS ON SALE OF US PUBLICATION SINGAPORE THE SINGAPORE GOVERNMENT SAID IT WILL ALLOW THE FAR EASTERN ECONOMIC REVIEW TO SELL UP TO 2000 COPIES AN ISSUE HERE EFFECTIVE MAY 1 THE DECISION PARTLY RELAXES RESTRICTIONS IMPOSED AT THE END OF 1987 ON THE WEEKLY MAGAZINE WHICH IS OWNED BY DOW JONES & CO IN 1987 THE GOVERNMENT CUT THE REVIEW'S CIRCULATION IN SINGAPORE TO 500 COPIES AN ISSUE FAR BELOW THE APPROXIMATELY 9000 COPIES IT HAD BEEN SELLING HERE THE GOVERNMENT ALSO HAS BARRED THE REVIEW FROM BASING A REPORTER IN SINGAPORE FOR THE PAST SEVERAL YEARS THE CAP ON THE REVIEW'S CIRCULATION WAS ONE OF SEVERAL SIMILAR RESTRICTIONS SINGAPORE APPLIED TO FOREIGN PUBLICATIONS IN 1986 AND 1987 AFTER ACCUSING THEM OF INTERFERING IN DOMESTIC POLITICS RESTRICTIONS ON TIME MAGAZINE WERE LATER REMOVED AND THOSE ON ASIAWEEK MAGAZINE AND THE ASIAN WALL STREET JOURNAL HAVE BEEN PARTLY RELAXED DOW JONES IS MAJORITY OWNER OF THE ASIAN WALL STREET JOURNAL WHICH IS CURRENTLY ALLOWED TO SELL UP TO 5000 COPIES AN ISSUE IN SINGAPORE TIME AND ASIAWEEK ARE BOTH OWNED BY TIME WARNER INC 9404180081 940418 BUSINESS BRIEF CFI PROSERVICES INC EARNINGS FOR 1ST QUARTER SEEN TO MEET ANALYSTS' ESTIMATES CFI PROSERVICES INC SAID IT EXPECTS TO REPORT FIRSTQUARTER EARNINGS OF BETWEEN 14 CENTS AND 16 CENTS A SHARE ON REVENUE OF SLIGHTLY OVER 6 MILLION MATTHEW CHAPMAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE BANKING SOFTWARE COMPANY IN PORTLAND ORE SAID THE COMPANY ANTICIPATES ITS 1994 EARNINGS WILL BE IN THE LOW 70CENT RANGE COMPARED WITH 1993 EARNINGS OF 56 CENTS A SHARE BOTH PROJECTIONS ARE WITHIN ANALYSTS' ESTIMATES FOR THE COMPANY'S QUARTERLY AND ANNUAL EARNINGS IN THE YEARAGO FIRST QUARTER CFI HAD EARNINGS OF 254000 OR NINE CENTS A SHARE ON REVENUE OF 51 MILLION THE COMPANY WENT PUBLIC LAST AUGUST MR CHAPMAN SAID REVENUE FOR ALL OF 1994 WILL BE SLIGHTLY MORE THAN 30 MILLION UP FROM 26 MILLION IN 1993 SALES FOR THE COMPANY'S LENDING AND NEWACCOUNT SOFTWARE SHOULD CONTINUE TO GROW AT BETWEEN 20 AND 30 THIS YEAR 9404180080 940418 RISING RENTS TURN HONG KONG RETAILERS INTO WORKAHOLICS SHOPKEEPERS PUT IN LONG DAYS STRUGGLING TO KEEP PRICEY ROOFS OVER THEIR HEADS BY CRAIG S SMITH STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG CHEN LONGKANG WORKS FROM 2 PM UNTIL 2 AM SEVEN DAYS A WEEK SLAMMING FRUIT AND ICE INTO BLENDERS AT HIS CORNER JUICE STORE HE HAS TO WORK QUICKLY TO COVER THE MONTHLY RENT OF 38000 HONG KONG DOLLARS US4918 FOR THE 30 SQUARE FEET HE LEASES ON A BUSTLING CORNER IN HONG KONG'S CAUSEWAY BAY DISTRICT THE STRIP IS JUST BIG ENOUGH FOR A STICKY WALKWAY BEHIND A REFRIGERATED CASE FILLED WITH PAPAYAS AND ORANGES BUT AT HK1267 A SQUARE FOOT IT'S AMONG THE MOST EXPENSIVE RETAIL SPACE IN THE WORLD ON AVERAGE MR CHEN HAS TO SELL ONE CUP OF JUICE EVERY MINUTE TO MAKE ENDS MEET IN THE SUMMER IT'S EASY TO GET ANGRY HE SAYS BREAKING MOMENTARILY FROM HIS HABITUAL SCOWL HONG KONG'S RETAIL RENTS ALREADY DOUBLE THOSE IN TOKYO AND NEW YORK ARE STRAINING MORE THAN NERVES THESE DAYS PROFIT MARGINS TOO ARE THINNING AS THE TERRITORY'S PROPERTY MARKET INFLATES BEYOND AFFORDABILITY SOME SHOPS ARE CLOSING OTHERS STRUGGLE TO STAY OPEN AS RENTS CONTINUE TO RISE LAST MONTH'S INCREASE IN INTEREST RATES THE FIRST IN THE TERRITORY SINCE 1991 ADDS TO THE PRESSURE ON BUSINESS OWNERS THE STRAIN IN RETAIL RENTS IS JUST ONE RESULT OF THE TERRITORY'S OVERALL PROPERTY BOOM WHICH HAS PUSHED RESIDENTIAL REAL ESTATE OUT OF REACH OF MOST WOULDBE BUYERS AND HAS GIVEN SOME COMPANIES SECOND THOUGHTS ABOUT OPENING OR EXPANDING OPERATIONS IN HONG KONG BUT STREETLEVEL STORES WHICH PAY THE HIGHEST RENTS OF ALL ARE THE MOST VISIBLE BAROMETER OF PROPERTYMARKET EXCESSES ANY SERIOUS SLOWDOWN IN CONSUMER SPENDING WOULD DIP MANY OF THE TERRITORY'S SHOP OWNERS INTO THE RED AND PROBABLY PRECIPITATE A SHAKEOUT PROPERTY WATCHERS SAY IF YOU'RE ON A VERY THIN MARGIN IT DOESN'T TAKE MUCH TO PUSH YOU OVER THE EDGE SAYS NICK BROOKE SENIOR PARTNER OF PROPERTY CONSULTANTS BROOKE HILLIER PARKER SOME OBSERVERS SEE THE EXORBITANT RENTS AS THE SIGN OF A PROPERTY BUBBLE ABOUT TO BURST BUT OTHERS ARGUE THE RISING RENTS SIMPLY REFLECT A SURGE IN CONSUMER SPENDING AS HONG KONG'S SUCCESS AS A GATEWAY TO CHINA FILLS LOCAL POCKETBOOKS RETAIL SALES IN THE TERRITORY ROSE 13 LAST YEAR FOLLOWING AN 18 RISE IN 1992 AS CONSUMER SPENDING RISES MORE RETAILERS ARE VYING FOR PRIME LOCATIONS FROM WHICH TO HAWK THEIR WARES THE HIGH RENTS IN TURN HELP FUEL THE SURGE IN HONG KONG REALESTATE VALUES RENTS INCREASE BECAUSE LANDLORDS REALIZE THEY CAN GET AN INCREASED RETURN ON THE PROPERTY NOTES MICHAEL GREEN AN ANALYST AT SG WARBURG SECURITIES FAR EAST LTD THAT'S THE ONLY REASON LANDLORDS ARE PAYING MORE FOR THE LAND NOT FAR FROM MR CHEN'S JUICE STAND LOCAL CLOTHING RETAILER BOSSINI MARKETING LTD IS PAYING HK1 MILLION A MONTH FOR A CORNER CLOTHING STORE WITH AN OPENAIR DESIGN THAT ATTRACTS SHOPPERS COURSING THROUGH AN ADJACENT ENTRANCE TO THE CAUSEWAY BAY SUBWAY STATION BOSSINI WON'T SAY WHETHER THE STORE IS PROFITABLE BUT IT MAY NOT MATTER DEMAND FOR SPACE IN SUCH HIGHRENT DISTRICTS IS DRIVEN IN PART BY PRESTIGE FOR SOME OF THESE HEADY RENTS THERE ARE ULTERIOR MOTIVES SUCH AS RAISING THE PROFILE OF THE COMPANY NAME SAYS DAVID FAULKNER HEAD OF RESEARCH FOR BROOKE HILLIER PARKER NEW RETAILERS IN PARTICULAR ARE WILLING TO PAY WHATEVER IT TAKES TO GET INTO THE MARKET WHICH OFTEN MEANS OPENING A SHOP IN CAUSEWAY BAY OR TSIM SHA TSUI TWO TRADITIONAL SHOPPING AREAS EASILY ACCESSIBLE BY SUBWAY CAUSEWAY BAY A CROWDED PATCH OF LAND RECLAIMED FROM A COVE WHERE FISHING JUNKS ONCE GATHERED HAS BECOME THE TERRITORY'S HOTTEST SHOPPING DISTRICT PARTICULARLY SINCE LAST YEAR'S OPENING OF WHARF HOLDINGS LTD'S TIMES SQUARE SHOPPING COMPLEX AND THE RENOVATION OF SOGO A JAPANESE STORE ALTHOUGH RETAILERS COMPLAIN THAT RISING RENTS ARE SHRINKING THEIR MARGINS INCREASED COMPETITION AMONG RETAILERS IS EQUALLY TO BLAME THE GROWING NUMBER OF RETAILERS VYING FOR A SHARE OF THE MARKET IS PUSHING RENTS HIGHER WHILE KEEPING PRICES OF CONSUMER ITEMS RELATIVELY LOW THE BARRIERS TO ENTRY FOR THE RETAIL BUSINESS ARE LOWER THAN THE BARRIERS TO MOST BUSINESSES NOTES SG WARBURG'S MR GREEN BECAUSE OF THAT THERE ARE LOTS OF PEOPLE DOING THE SAME THING AND MARGINS ARE SQUEEZED SOME BUSINESSES MAY BE SQUEEZED OUT ALTOGETHER TWO DOORS DOWN FROM MR CHEN LAU WINGLUEN'S HANDS ARE A BLUR AS HE STRIPS LEAVES FROM ROSES WHEN A CUSTOMER STOPS TO ADMIRE POTS OF FLOWERS DISPLAYED ON THE SIDEWALK OUTSIDE THE FLOWERSHOP OWNER DROPS THE ROSES AND SPRINGS FROM HIS OFFICE WHICH DOUBLES AS HIS SHOWROOM STOREROOM AND WORK SPACE MR LAU'S PERCH JUST ENOUGH FOR A TABLE AND CHAIR IS SQUEEZED IN A DOORWAY UNDER A FLIGHT OF STAIRS THE RENT HK13000 A MONTH HE MUST SELL 240 FLOWERS A DAY JUST TO BREAK EVEN THERE'S A LOT OF PRESSURE HE SAYS WITH A BLEAK SMILE MR LAU'S RENT JUMPED 30 IN MARCH SO HE IS OPENING EARLIER AND CLOSING LATER TO TRY TO COVER THE HIGHER RENT HE RECENTLY RAISED HIS PRICES ABOUT 5 BUT CAN'T RAISE THEM FURTHER WITHOUT LOSING BUSINESS AS IT IS HE'S NERVOUS ABOUT THE SUMMER MONTHS WHEN THE HEAT WILTS HIS ROSES BY NOON AND HE'S LUCKY TO SELL 100 FLOWERS IN A DAY MR LAU SAYS HE'LL TOUGH IT OUT FOR NOW BUT IF HE CAN'T MAKE IT OR RENTS RISE AGAIN HE'LL MOVE BACK TO CHINA MANY RETAILERS CAN'T RAISE PRICES TO KEEP UP WITH THE INCREASES THEY FACE IN RENT AND OTHER COSTS CLOTHING RETAILER GIORDANO LTD FOR EXAMPLE HAS UNIFORM PRICING IN THE TERRITORY AND MUST FIND OTHER WAYS TO ABSORB THE MAMMOTH RENT RISES FACING SOME OF ITS STORES EIGHT OF THE COMPANY'S 44 HONG KONG SHOPS ARE SQUEEZED INTO CAUSEWAY BAY'S TWO SQUARE KILOMETERS OR 08 SQUARE MILES BUT AT LEAST TWO WILL CLOSE BY JUNE BECAUSE LANDLORDS WANT TOO MUCH MONEY TO RENEW THE LEASES WE'LL CONSOLIDATE AS MUCH AS POSSIBLE AND WE'LL TRY TO IMPROVE EFFICIENCY BUT STILL OUR MARGINS WILL SUFFER SAYS GIORDANO GENERAL MANAGER WILSON CHU HE SAYS SOME LANDLORDS HAVE ASKED FOR RENT INCREASES OF AS MUCH AS 50 GIORDANO WON'T RENT A STORE FOR MORE THAN 20 OF WHAT IT EXPECTS IN GROSS SALES FROM THE LOCATION BECAUSE OF THE LOW MARGIN MOST RETAILERS HAVE VERY LIMITED ROOM FOR ERROR MR CHU SAYS THE COMPANY RECENTLY OPENED A SHOP BETWEEN THE TWO STORES THAT ARE BEING CLOSED PAYING HK850000 A MONTH FOR TWO FLOORS OF 700 SQUARE FEET EACH MR CHU SAYS THE SMALL SHOP HAS TO SELL 1200 GARMENTS A DAY TO BREAK EVEN NOT ALL RENTS ARE RISING HOWEVER JONES LANG WOOTTON LTD DIRECTOR PETER LEE SAYS NEGOTIATIONS ARE BECOMING TOUGHER BETWEEN RETAILERS AND LANDLORDS THERE ARE SOME AREAS WHERE RENTS ARE ACTUALLY GOING DOWN MR LEE SAYS HE NOTES THAT EVEN AS RENTS CONTINUE TO RISE IN TSIM SHA TSUI THEY'RE FALLING IN ADJACENT TSIM SHA TSUI EAST WHICH IS POORLY SERVED BY PUBLIC TRANSPORTATION IN OTHER AREAS LANDLORDS HAVE HAD TO MAKE RENT CONCESSIONS TO KEEP TENANTS IN PLACE THE THIRD LEVEL OF PACIFIC PLACE HAS FELT THE DRAFT SAYS BROOKE HILLIER PARKER'S MR BROOKE OF SWIRE PACIFIC LTD'S MALL NEAR THE DOWNTOWN CENTRAL DISTRICT SUCH CONCESSIONS ARE OFTEN GRANTED AS LANDLORDS TEST THE UPPER REACHES OF TENANT ENDURANCE WHEN RETAILERS CAN'T MEET THE HIGHER RENT LANDLORDS WILL EITHER FIND SOMEONE WHO CAN OR BACK DOWN TO KEEP THE EXISTING TENANT HOWEVER WHILE IT DOESN'T HURT OFFICE TOWERS TO HAVE VACANT FLOORS BOARDED UP SHOPS CAN KILL A SHOPPER'S MOOD JUST A FEW EMPTY SHOPS CAN CUT INTO SALES AT SHOPS NEARBY LANDLORDS UNDERSTAND THIS AND PICK UP SIGNALS FROM THEIR TENANTS VERY QUICKLY BECAUSE THE MARGIN OF ERROR ISN'T AS MUCH AS PEOPLE BELIEVE MR GREEN SAYS NO ONE CAN CHARGE ANYTHING MORE THAN THE MARKET CAN BEAR BUT CONCESSIONS ARE RARELY AVAILABLE TO SMALL PROPRIETORS LIKE MR CHEN WHO HAS DECAMPED FOUR TIMES IN THE PAST 12 YEARS BECAUSE OF RISING RENTS THE VOLUME OF TRAFFIC PAST MR CHEN'S JUICE STAND HAS RISEN STEADILY IN THE PAST FEW YEARS AND HIS GROSS SALES HAVE JUMPED BY MORE THAN 50 SINCE 1992 BUT HIS RENT HAS NEARLY DOUBLED SINCE THEN HE'S STILL MAKING MONEY BUT HIS INCOME HASN'T KEPT UP WITH HONG KONG'S NEAR 10 INFLATION HE AND HIS WIFE WHO ARRIVES EACH NIGHT TO WORK FROM MIDNIGHT UNTIL 2 AM AFTER PUTTING THEIR CHILDREN TO BED CLEAR ABOUT HK20000 A MONTH IN PROFIT THAT'S NOT MUCH MORE THAN THEY WERE MAKING TWO YEARS AGO WHEN THE RENT WAS ALMOST HALF OF WHAT IT IS TODAY MR CHEN IS HOPING NEW VARIETIES OF JUICE WILL BOOST HIS SALES ENOUGH TO SURVIVE FOR A WHILE 9404180079 940418 EXCHANGE RATES THE NEW YORK FOREIGN EXCHANGE SELLING RATES BELOW APPLY TO TRADING AMONG BANKS IN AMOUNTS OF 1 MILLION AND MORE AS QUOTED AT 3 PM EASTERN TIME BY BANKERS TRUST CO DOW JONES TELERATE INC AND OTHER SOURCES RETAIL TRANSACTIONS PROVIDE FEWER UNITS OF FOREIGN CURRENCY PER DOLLAR SPECIAL DRAWING RIGHTS SDR ARE BASED ON EXCHANGE RATES FOR THE US GERMAN BRITISH FRENCH AND JAPANESE CURRENCIES SOURCE INTERNATIONAL MONETARY FUND EUROPEAN CURRENCY UNIT ECU IS BASED ON A BASKET OF COMMUNITY CURRENCIES 9404180078 940418 MARKETING BRIEF NOTED RADIO CBS INC'S CBS HISPANIC RADIO NETWORK IS EXPECTED TO ANNOUNCE TODAY THAT IT IS CHANGING ITS NAME TO CBS AMERICAS TO TAKE NOTE OF THE WIDE RANGE OF SPANISHLANGUAGE LISTENERS IN THE US CENTRAL AND SOUTH AMERICA THE SPANISHLANGUAGE RADIO NETWORK ALSO WILL ANNOUNCE THAT IT IS JOINING WITH UNITED PRESS INTERNATIONAL TO PROVIDE HOURLY NEWSCASTS IN SPANISH BEGINNING JUNE 27 WHO'S NEWS WHITTLE COMMUNICATIONS LP NAMED DOUGLAS GREENLAW CHAIRMAN AND CHIEF EXECUTIVE OF WHITTLE VENTURES A UNIT THAT OPERATES DIVERSE MEDIA AND ENTERTAINMENT PROPERTIES MR GREENLAW PRESIDENT OF MARKETING AT WHITTLE SUCCEEDS WILLIAM B CONNELL WHO IS RESIGNING TO PURSUE PERSONAL BUSINESS INTERESTS HILL & KNOWLTON INC NEW YORK NAMED DONNA COLE PETERMAN AN EXECUTIVE VICE PRESIDENT OF THE PUBLICRELATIONS FIRM'S HILL & KNOWLTON USA UNIT AND DIRECTOR OF CORPORATE SERVICES ACTIVITIES SINCE 1991 SHE HAS BEEN A SENIOR VICE PRESIDENT IN THE NEW YORK OFFICE RESPONSIBLE FOR MANAGING BANKING PROFESSIONAL SERVICES AND FINANCIAL ADVISORY COMPANIES 9404180077 940418 THE OUTLOOK NEW ENGLAND ECONOMY SEARCHES FOR RENEWAL BY JOHN R WILKE BOSTON IN NEW ENGLAND AS IN THE REST OF THE NATION EMPLOYMENT IS UP SO TOO ARE HOME PRICES CONSTRUCTION AND CONSUMER CONFIDENCE BUT DON'T LET THAT FOOL YOU THE ECONOMIC OUTLOOK HERE FOR THE NEXT FEW YEARS IS HARDLY ROSY THE INDUSTRIES THAT FUELED EARLIER RECOVERIES IN NEW ENGLAND ARE STILL IN DECLINE DOWNSIZING CONTINUES IN MANUFACTURING COMPUTERS AND DEFENSE EVEN HEALTH CARE WHICH ROARED THROUGH PAST RECESSIONS VIRTUALLY UNRUFFLED IS LOOKING A LITTLE SICK SURELY PEOPLE SAY SOMETHING WILL COME ALONG THEY LOOK TO THE REGION'S GREAT UNIVERSITIES HARVARD YALE MASSACHUSETTS INSTITUTE OF TECHNOLOGY TO AGAIN SPIN OFF INNOVATIVE TECHNOLOGY AND SPARK GROWTH RECALL THE MASSACHUSETTS MIRACLE STOKED BY UNIVERSITY COMPUTER RESEARCH AND STUDENTS WHO CAME AND STAYED AND YET HERE TOO IS A WORRISOME TREND NEW ENGLAND'S SHARE OF TOTAL UNIVERSITYRESEARCH FUNDING LONG THE HIGHEST PER CAPITA IN THE NATION IS SHRINKING IT FELL 14 BETWEEN 1987 AND 1991 THE LAST YEAR FOR WHICH COMPLETE DATA ARE AVAILABLE AND THERE ARE INDICATIONS THAT THE SLIDE HAS CONTINUED SAYS JOHN HOY PRESIDENT OF THE NONPROFIT NEW ENGLAND BOARD OF HIGHER EDUCATION IN SOME AREAS THE FUNDING DECLINE HAS BEEN EVEN GREATER 25 IN PHYSICAL SCIENCES 21 IN MATH AND COMPUTER SCIENCES AND 19 IN ENGINEERING RESEARCH DESPITE THE SPECIAL ROLE OF EDUCATION AND RESEARCH IN THE NEW ENGLAND ECONOMY THE REGION RANKS SURPRISINGLY LOW IN PUBLIC SUPPORT FOR EDUCATION AND LAST AMONG THE NINE US CENSUS REGIONS IN STATE FUNDS ALLOCATED TO UNIVERSITY RESEARCH THE 1990 LOSS OF A HUGE FEDERAL MAGNETRESEARCH LAB HAS BECOME SYMBOLIC OF THE IMPORTANCE OF STATE FUNDING DESPITE ITS GOOD REPUTATION AND THE FACT THAT IT HAD A LARGE MAGNET LAB ALREADY IN PLACE MIT LOST THE PROJECT TO FLORIDA STATE UNIVERSITY WHICH PUT UP 77 MILLION IF NEW ENGLAND LOSES ITS CUTTINGEDGE CAPABILITIES IN BASIC AND APPLIED RESEARCH WHAT TAKES THE PLACE OF THAT MR HOY ASKS CERTAINLY NEW ENGLAND UNIVERSITIES HAVE CONTINUED TO ATTRACT TALENT NURTURE ENTREPRENEURS AND SPIN OFF NEW BUSINESSES MASSACHUSETTS' FERTILE BIOTECHNOLOGY INDUSTRY IS THE LATEST WITH STARTUPS SPROUTING ALMOST WEEKLY IN THE REDBRICK BUILDINGS IN CAMBRIDGE THAT ONCE HOUSED WOOLEN MILLS AND MOLASSES FACTORIES THE REGION HAS ALSO SEEN STRONG GROWTH IN SOFTWARE COMPUTER NETWORKING AND DATASTORAGE JOBS BUT THAT ISN'T THE CASE IN THE MAINSTAY PART OF THE TECHNOLOGY INDUSTRY THAT BUILDS THINGS SUCH AS COMPUTERS THERE EMPLOYMENT IS IN FREEFALL DOWN 33 FROM 1988 AND MOST OF THESE JOBS AREN'T COMING BACK SAYS LYNN BROWNE CHIEF ECONOMIST OF THE FEDERAL RESERVE BANK OF BOSTON THAT IS BECAUSE AMERICA IS NO LONGER BUYING AS MANY OF THE BIG COMPUTERS MADE BY DIGITAL EQUIPMENT DATA GENERAL WANG AND THE REGION'S OTHER FADED STARS EVEN IF THESE COMPANIES RECOVER FROM THEIR TROUBLES THEY ARE LIKELY TO EMPLOY FEWER PEOPLE A COMPUTER THAT MIGHT HAVE TAKEN 100 TO DESIGN AND BUILD HAS BEEN REDUCED TO A MICROCHIP PROBABLY MADE IN CALIFORNIA AS FOR BIOTECHNOLOGY WE'RE STILL WAITING FOR IT TO BEAR FRUIT MS BROWNE SAYS THE REGION'S VAST UNIVERSITYRESEARCH COMPLEX ALSO HAD A KEY ROLE IN THE EXTRAORDINARY GROWTH OF HOSPITALS AND THE HEALTHCARE INDUSTRY IN NEW ENGLAND ESPECIALLY IN BOSTON ARGUABLY THE MEDICALRESEARCH CAPITAL OF THE WORLD HERE TOO SIGNS OF STRAIN ARE EVIDENT AS CONSOLIDATION AND COSTCUTTING SWEEP THE INDUSTRY IF HEALTH CARE GETS SQUEEZED NEW ENGLAND IS GOING TO GET CLOBBERED SAYS LAWRENCE B LINDSEY A FEDERAL RESERVE BOARD GOVERNOR ONE ECONOMIC SECTOR THAT IS GROWING IS CONSTRUCTION THE BIG CLEANUP OF BOSTON HARBOR AND THREE LARGE HIGHWAY PROJECTS HAVE BROUGHT IN PLENTY OF CONSTRUCTION WORK THE SERVICE SECTOR TOO IS EXPANDING EVERYTHING FROM FLIPPING HAMBURGERS TO MANAGING MONEY SERVICE JOBS AS A PERCENTAGE OF MASSACHUSETTS EMPLOYMENT SOARED TO 33 IN 1992 FROM 21 IN 1972 WHILE MANUFACTURING SLUMPED TO 15 FROM 25 STILL CONSTRUCTION EMPLOYMENT REMAINS WELL OFF ITS PEAK IN THE 1980S AND IT IS LARGELY DEPENDENT ON PUBLICWORKS PROJECTS WHICH WON'T LAST FOREVER AS FOR SERVICE JOBS THERE IS THE COMMON COMPLAINT THEY DON'T PAY ANYWHERE NEAR WHAT THE LOST FACTORY JOBS DID IN HARDHIT CONNECTICUT CASINO GAMBLING IS PERHAPS THE FASTESTGROWING SERVICES SEGMENT FOR BETTER OR WORSE OTHERS ARE JUMPING ON THE BANDWAGON GAMBLING PROPOSALS ARE PENDING IN MASSACHUSETTS AND MAINE THERE'S A PARALLEL BETWEEN WHAT'S ABOUT TO HAPPEN WITH CASINOS IN NEW ENGLAND AND THE CONDO DISASTER HERE IN THE 1980S WARNS NICHOLAS S PERNA A SHAWMUT BANK ECONOMIST IF EVEN HALF OF THOSE PROPOSED GET BUILT WE'RE GOING TO BE UP TO OUR EYEBALLS IN EXCESS CAPACITY AT THE VERY LEAST NEW ENGLAND WILL STILL BE LEFT LOOKING FOR LONGERTERM SOLUTIONS BUT WHAT IT NEEDS ARE SOURCES OF RENEWAL 9404180076 940418 ENTERPRISE FINANCING SMALL BUSINESS FACTORING AND VENTURE FIRMS' ROLES IN FINANCING GROW BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL FACTORING FIRMS GAIN AS AN IMPORTANT SOURCE OF SMALLBUSINESS CAPITAL AS THE SUPPLY OF BANK CREDIT HAS TIGHTENED MORE FACTORING COMPANIES HAVE FORMED TO FILL SMALL BUSINESSES' CAPITAL NEEDS BY PURCHASING THEIR ACCOUNTS RECEIVABLES FACTORING FIRMS FINANCED AT LEAST 62 BILLION IN RECEIVABLES IN 1993 UP FROM 46 BILLION IN 1987 SAYS MACE EDWARDS PUBLISHER OF THE EDWARDS DIRECTORY OF AMERICAN FACTORS IN NEWTON MASS MUCH OF THAT CAPITAL WENT TO SMALL BUSINESSES HE ADDS MOST OF MY CLIENTS ARE SMALL BUSINESSES WITH ANNUAL SALES BETWEEN 1 MILLION AND 5 MILLION SAYS JOHN DANIS A PARTNER IN RIVIERA FINANCE A FACTORING CONCERN IN REDONDO BEACH CALIF RIVIERA'S SMALLBUSINESS CLIENTS INCLUDE CONCERNS INVOLVED IN TEMPORARY HELP TRUCKING COMPUTER HARDWARE AND SOFTWARE SMALL BUSINESSES THAT SELL TO OTHER BUSINESSES OR TO GOVERNMENT AGENCIES USE FACTORING FIRMS BECAUSE THEY OFTEN EXPERIENCE BIG DELAYS IN PAYMENT HE SAYS OFTEN SUCH BUSINESSES LACK THE ASSETS OR COLLATERAL TO ATTRACT BANK FINANCING THE FACTORING BUSINESS ITSELF ALSO IS QUITE ENTREPRENEURIAL ALTHOUGH A FEW BIG CONCERNS SUCH AS BARCLAY'S COMMERCIAL CORP CIT GROUP AND HELLER FINANCIAL INC DOMINATE THE MARKET MOST OF THE 240 OR SO FACTORING FIRMS ARE SMALL AND HAVE OPERATED FOR LESS THAN 10 YEARS ACCORDING TO MR EDWARDS BANKS ALSO LEND AGAINST RECEIVABLES BUT THE BURDEN OF COLLECTION REMAINS WITH THE SMALL BUSINESS BY CONTRAST FACTORS BUY THE RECEIVABLES OUTRIGHT AND CHARGE AS MUCH AS 5 OF THEIR VALUE AS THEIR FEE VENTURE CAPITALISTS INVESTED RECORD SUMS IN '93 BUT NOT ADVENTUROUSLY THE RECORD 42 BILLION INVESTED BY VENTURECAPITAL FUNDS LAST YEAR REPRESENTED A 20 INCREASE FROM 35 BILLION IN 1992 BUT MOST OF THE EXTRA DOLLARS WENT TO LEVERAGED BUYOUTS AND WELLESTABLISHED COMPANIES REPORTS VENTUREONE A SAN FRANCISCO RESEARCH FIRM THE MOST NOTABLE TREND LAST YEAR WAS THE INCREASE IN LBO ACTIVITY VENTUREONE SAYS IN ITS ANNUAL ENTREPRENEURIAL INVESTMENT REPORT VENTURE INVESTORS POURED 505 MILLION INTO 30 LBOS UP SHARPLY FROM THE 118 MILLION INVESTED IN 17 TRANSACTIONS THE YEAR BEFORE ESTABLISHED COMPANIES WHICH ALREADY SELL PRODUCTS AND USUALLY ARE PROFITABLE ALSO BENEFITTED FROM THE VENTURECAPITAL LARGESS FINANCING OF SUCH COMPANIES JUMPED 21 TO 161 BILLION FROM 132 BILLION IN 1992 THE NUMBER OF THESE DEALS ALSO ROSE IN 1993 TO 302 FROM 291 BUT THE TREND DOESN'T MEAN THAT VENTURECAPITAL FIRMS NOW ARE AVOIDING RISK ARGUES ROBERT PAVEY A GENERAL PARTNER OF MORGENTHALER VENTURES IN CLEVELAND INSTEAD OF ALL CHASING THE SAME DEALS AS IN THE 1980S THE VENTURE CAPITALIST SAYS WE ARE GOING WHERE THE OPPORTUNITIES ARE THE NUMBER OF EARLYROUND INVESTMENTS IN COMPANIES WITH NO PRODUCTS OR SALES DECLINED IN VENTUREONE'S FINANCING TALLY BUT THE DOLLARS INVESTED WENT UP A BIT TO 106 BILLION OR 25 OF THE TOTAL IN 1992 SIMILAR COMPANIES RECEIVED 101 BILLION OR 28 OF ALL VENTURE INVESTMENTS COMPANIES BASED IN CALIFORNIA AND MASSACHUSETTS RECEIVED 47 OF ALL FUNDS INVESTED DOWN FROM 52 OF THE TOTAL IN 1992 CONCERNS IN VIRGINIA TEXAS MINNESOTA AND MARYLAND THAT GOT SIZABLE INVESTMENTS PICKED UP SOME OF THE SLACK FOREIGN INVESTORS REMAIN INTERESTED IN SMALL BIOTECHNOLOGY COMPANIES EVEN THOUGH DOMESTIC INVESTORS HAVE BECOME BEARISH SAYS BURRILL & CRAVES A SAN FRANCISCO LIFESCIENCES INVESTMENT GROUP IN THE FIRST SUCH DEALS THREE SMALL BIOTECH FIRMS RAISED 135 MILLION THROUGH STOCK OFFERINGS TARGETED TO FOREIGN INVESTORS DURING THIS YEAR'S FIRST QUARTER THE FIRMS ARE CYTOGEN CORP BIORELEASE CORP AND IMCLONE SYSTEMS INC ALSO FOREIGN PHARMACEUTICAL COMPANIES ARE STEPPING UP THEIR INVESTMENTS IN SMALL US BIOTECH CONCERNS SAYS STEVEN BURRILL A BURRILL & CRAVES PARTNER SMALL US FIRMS FIND IT TOUGH TO FINANCE THEIR DEALS IN EASTERN EUROPE THE POLISHAMERICAN ENTERPRISE FUND A PRIVATE CORPORATION CREATED BY THE US GOVERNMENT TO ENCOURAGE PRIVATESECTOR DEVELOPMENT IN POLAND SAYS IT DIDN'T HAVE ANY SMALL US COMPANIES INCLUDED IN THE 11 DEALS FINANCED DURING THE YEAR ENDED LAST SEPT 30 IN OCTOBER 1993 IT PARTICIPATED IN A 22 MILLION FINANCING FOR MIDWEST TRADERS INTERNATIONAL A CHICAGO BUILDER AND DISTRIBUTOR OF CONSTRUCTION PRODUCTS MIDWEST IS SELLING DRYVIT A STUCCOLIKE EXTERIOR INSULATION MATERIAL THROUGH POLISH DISTRIBUTORS THE CZECH & SLOVAK AMERICAN ENTERPRISE FUND ANOTHER SUCH FUND SAYS THAT JUST ONE OF THE 12 NEW DEALS BACKED IN THE YEAR ENDED LAST SEPT 30 INCLUDED A US ENTREPRENEURIAL PARTNER BUT THE WASHINGTON FUND SAYS IT HOPES TO INVEST SOON IN TWO JOINT VENTURES IN SLOVAKIA AND TO CLOSE ON ANOTHER VENTURE THERE ALL WITH US PARTNERS LAST NOVEMBER THE FUND COMMITTED 600000 TO A JOINT VENTURE BETWEEN HELAS A BRATISLAVA MAKER OF CRUTCHES AND OTHER MOBILITY AIDS AND WHEELSPORT INTERNATIONAL A FRESNO CALIF MAKER OF WHEELCHAIRS THE VENTURE WILL MANUFACTURE AND MARKET WHEELCHAIRS IN EUROPE BUREAUCRATIC BOTTLENECKS AND LENGTHY NEGOTIATIONS ARE AMONG THE MAJOR OBSTACLES CONFRONTING JOINT VENTURES IN EASTERN EUROPE FUND MANAGERS SAY THE MARKETS ALSO HAVEN'T EXPANDED AS RAPIDLY AS HOPED SMALLER COMPANIES HAVE DIFFICULTY IN MARSHALLING THE RESOURCES FOR A NEW BUSINESS IN EASTERN EUROPE SAYS FRANCIS SKROBISZEWSKI VICE PRESIDENT OF THE POLISHAMERICAN ENTERPRISE FUND BUT HE NOTES BIGGER US COMPANIES SUCH AS RR DONNELLEY & SONS CO NYNEX CORP AND OWENSILLINOIS INC HAVE MADE SIGNIFICANT INROADS IN EASTERN EUROPE AND ARE CREATING A MARKET FOR SMALLER SUPPLIERS JOINT VENTURES BETWEEN SMALL US COMPANIES AND EASTERN EUROPEAN COUNTERPARTS ARE HARDER TO GET CLOSED SAYS RICHARD DINE SENIOR INVESTMENT OFFICER OF THE CZECH & SLOVAK AMERICAN ENTERPRISE FUND EVEN WHEN LOCAL PARTNERS HAVE A STRONG MARKET PRESENCE THEY OFTEN LACK FINANCIAL MANAGEMENT AND BROAD MARKETING KNOWHOW HE EXPLAINS JOINT VENTURES FINANCED BY THE CZECH & SLOVAK AMERICAN ENTERPRISE FUND HAVE BEEN BEEN IN THE WORKS FOR SOME TIME MR DINE NOTES BUT IT HAS TAKEN SOME TIME FOR THE PARTNERS TO GET TO KNOW EACH OTHER 9404180075 940418 SERBS SEIZE GORAZDE AGREE TO WITHDRAW BUT CEASEFIRE IN BOSNIA ISN'T EXPECTED TO HOLD US HAS LITTLE CLOUT BY CARLA ANNE ROBBINS AND THOMAS E RICKS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON HAVING SEIZED ALL BUT THE CENTER OF THE MUSLIM ENCLAVE OF GORAZDE BOSNIAN SERB POLITICAL LEADERS AGREED TO HALT THEIR ATTACKS ON THE UNDECLARED SAFE HAVEN UNITED NATIONS ENVOY YASUSHI AKASHI WHO NEGOTIATED THE DEAL YESTERDAY SAID THAT THE BOSNIAN SERBS HAD AGREED TO WITHDRAW AS FAR AS POSSIBLE AND AS SOON AS POSSIBLE BUT SOME REPORTS HAD SERBIAN MILITARY FORCES ENTERING THE CENTER OF GORAZDE AND UN OFFICIALS IN NEW YORK AND IN SARAJEVO SAID THAT WITH THE COLLAPSE OF MUSLIM DEFENSES THERE WAS NOW NOTHING TO STOP THE SERBS FROM OVERRUNNING THE TOWN EVEN IF THE CEASEFIRE HOLDS THE AGREEMENT STILL FALLS FAR SHORT OF THE FULL WITHDRAWAL DEMANDED BY THE US AND THE UN EARLY LAST WEEK WHEN NORTH ATLANTIC TREATY ORGANIZATION PLANES ACTING ON UN INSTRUCTIONS FIRST LAUNCHED AIR STRIKES AGAINST SERB FORCES AROUND GORAZDE IT'S ALSO UNLIKELY TO RELIEVE THE SUFFERING OF THE 65000 RESIDENTS AND REFUGEES CRAMMED INTO THE CITY THE SERBS ALSO REJECTED MR AKASHI'S PROPOSAL THAT HUNDREDS OF UKRAINIAN PEACEKEEPERS BE DEPLOYED INSIDE GORAZDE TO PROTECT THE CITY YESTERDAY SERBS RELEASED 19 CANADIAN PEACEKEEPERS BUT CONTINUED TO HOLD 150 OR MORE UN PERSONNEL BUT HAVING DECIDED OVER THE WEEKEND AGAINST MORE FORCEFUL MILITARY ACTION TO CONTAIN THE SERBIAN ONSLAUGHT THE US AND ITS ALLIES HAD VERY LITTLE WITH WHICH TO BARGAIN US OFFICIALS WARNED LATE YESTERDAY THAT THE DEAL WAS AT BEST MINIMAL AND PROVISIONAL THE SERBS ALREADY CONTROL ALL THE STRATEGIC POINTS AROUND THE CITY AT BEST WHAT YOU'LL HAVE IS 65000 PEOPLE BEING HELD HOSTAGE IN DOWNTOWN GORAZDE SAID A SENIOR US OFFICIAL THE US AND ITS WESTERN ALLIES HAD HIGH HOPES THAT LAST WEEK'S EXTREMELY LIMITED AIR STRIKES WOULD PERSUADE THE BOSNIAN SERBS TO HALT THEIR ATTACK ON THE UNDESIGNATED SAFE HAVEN IN SOUTHEASTERN BOSNIA AND RETURN TO THE NEGOTIATING TABLE BUT THE STRIKES HAD ONLY LIMITED EFFECTIVENESS HAMPERED BY TECHNICAL FAILINGS AND POOR WEATHER ON SATURDAY A BRITISH HARRIER JET STALKING A SERB TANK ON THE OUTSKIRTS OF GORAZDE WAS DOWNED BY A SURFACETOAIR MISSILE THE PILOT EJECTED AND WAS RESCUED BY BOSNIAN FORCES YESTERDAY ANOTHER AIR STRIKE WAS DISCUSSED BUT A FORMAL UN REQUEST FOR ONE WASN'T SENT TO NATO BECAUSE POOR WEATHER IMPAIRED ACCURATE TARGETING NATO OFFICIALS SAID EVEN AS NATO LOST AN AIRCRAFT US OFFICIALS MET AND DECIDED AGAINST ESCALATING MILITARY ACTION AMONG THEIR REASONS FOR REJECTING TOUGHER MEASURES SUCH AS WIDER BOMBING RAIDS US OFFICIALS PRIVATELY CITED OBJECTIONS FROM RUSSIA AND WESTERN ALLIES CONCERNS ABOUT WAVERING DOMESTIC SUPPORT AND A FUNDAMENTAL FEAR THAT TOUGHER ACTION WOULD DESTROY ANY HOPES FOR REVIVING PEACE NEGOTIATIONS YESTERDAY PRESIDENT CLINTON SUGGESTED THAT FURTHER LIMITED AIR STRIKES WERE UNLIKELY SAYING THAT THE UN COMMANDER IN BOSNIA HAD DECIDED THAT THEY WOULDN'T HAVE THE DESIRED MILITARY EFFECT HE EMPHASIZED THAT THE US GOAL IS TO GET USBROKERED PEACE NEGOTIATIONS BACK ON TRACK SENATE MINORITY LEADER ROBERT DOLE EXPRESSED DISMAY THAT NATO HADN'T RETALIATED WHEN A NATO PLANE IS SHOT DOWN THERE SHOULD HAVE BEEN SOME REACTION HE SAID SPEAKING ON CABLE NETWORK NEWS THE WEST'S REFUSAL TO USE FORCE TO ROLL BACK SERBIAN MILITARY GAINS AROUND GORAZDE COULD NOW MAKE IT TOUGHER TO WORK OUT A BROADER POLITICAL SETTLEMENT THE US AND ITS ALLIES HAVE SAID REPEATEDLY THAT THE SERBS WOULD HAVE TO GIVE UP ABOUT ONETHIRD OF THE TERRITORY THEY NOW CONTROL IN BOSNIA AS A MINIMAL CONDITION FOR A LASTING PEACE BUT WITHOUT ANY MILITARY THREAT TO BACK UP THAT DEMAND THE SERBS APPEAR TO HAVE LITTLE REASON TO COMPLY THE CLINTON ADMINISTRATION'S WAVERING STANCE ON BOSNIA DREW FIRE FROM ALL SIDES YESTERDAY FORMER SECRETARY OF STATE LAWRENCE EAGLEBURGER WHO OPPOSED ANY US MILITARY ACTION IN BOSNIA DURING HIS OWN TENURE SAID THAT HAVING CROSSED THE RUBICON WITH AIR STRIKES THE ONLY ANSWER NOW IS A VERY HEAVY USE OF AIR POWER BOTH AGAINST BOSNIAN SERBS AND THEIR PATRONS IN SERBIA HE WAS INTERVIEWED ON CBSTV'S FACE THE NATION PROGRAM THE ADMINISTRATION ALSO WAS BLASTED FOR ANOTHER IDEA FLOATED BY US OFFICIALS IN RECENT DAYS HOPING TO ENTICE THE BOSNIAN SERBS BACK TO THE BARGAINING TABLE OFFICIALS HAVE SUGGESTED THAT THE US MIGHT BE WILLING TO DISCUSS A FRENCHRUSSIAN PROPOSAL FOR A PHASED LIFTING OF ECONOMIC SANCTIONS ON SERBIA ON SATURDAY RUSSIAN FOREIGN MINISTER ANDREI KOZYREV FLEW TO BELGRADE WHERE HE MET WITH SERBIAN PRESIDENT SLOBODAN MILOSEVIC IN AN EFFORT TO BROKER A CEASEFIRE BOTH RUSSIA AND FRANCE ALSO HAVE BEEN PRESSING FOR AN INTERNATIONAL CONFERENCE ON BOSNIA TO REPLACE USLED NEGOTIATIONS PERHAPS AS EARLY AS THIS WEEK US SECRETARY OF STATE WARREN CHRISTOPHER SPOKE YESTERDAY WITH MR KOZYREV BY TELEPHONE AND TOLD HIM THAT THERE WEREN'T ANY GROUNDS ON WHICH TO HAVE A DISCUSSION ACCORDING TO A SENIOR US OFFICIAL ELISABETH RUBINFIEN IN MOSCOW CONTRIBUTED TO THIS ARTICLE 9404180074 940418 LEISURE & ARTS ON SPORTS RUNS FOR THE RUN FOR THE ROSES BY FREDERICK C KLEIN LEXINGTON KY THEY RUN AROUND OVALS SO RACING HORSES USUALLY ARE CONSIDERED TO BE THE BEASTLY COUNTERPARTS OF TRACK ATHLETES BUT THEY ALSO CAN BE COMPARED TO BOXERS THE PUGILISTS NOT THE CANINES THAT'S BECAUSE THEY OR RATHER THEIR HUMAN HANDLERS LIKE NOTHING BETTER THAN GRABBING OFF PURSES AGAINST THE WEAKEST POSSIBLE COMPETITION IF THERE ARE FIVE GOOD HORSES IN A DIVISION YOU CAN BE FAIRLY SURE THEY'LL BE IN FIVE DIFFERENT PLACES AT ANY GIVEN TIME EVERY SO OFTEN THOUGH CIRCUMSTANCES DICTATE THAT THE ANIMALS DO SOMETHING DIFFICULT AND SATURDAY WAS AMONG THOSE OCCASIONS IT WAS NOT ONE OF THE DAYS IN RACING LIKE THE KENTUCKY DERBY THAT'LL BE THREE WEEKS HENCE BUT IT WOULD DO AS A WARMUP AT AQUEDUCT IN NEW YORK THEY RAN THE WOOD MEMORIAL THE MAJOR EAST COAST DERBY PREP FOR THREEYEAROLDS AND TWO GENYOUWINE DERBY CONTENDERS SHOWED UP ABOUT A HALFHOUR LATER AND SOME 500 MILES TO THE WEST AT GREEN AUSTERE KEENELAND IN LEXINGTON THE MAIN EVENT WAS THE BLUE GRASS STAKES AND IT ATTRACTED THREE COLTS WITH DERBY BONA FIDES A VERITABLE BONANZA THROUGH THE MIRACLES OF TELEVISION AND COMPUTERS YOU COULD SIT AT EITHER TRACK AND QUITE A FEW OTHER PLACES AND WATCH AND BET ON BOTH RACES BUT THE ALWAYSHOPEDFOR COMPETITIVE BONANZA DIDN'T MATERIALIZE IRGUN WON THE 1 1/8MILE WOOD BY 1 1/2 LENGTHS WIRETOWIRE OVER TOPRIVAL GO FOR GIN ON A TRACK THAT WAS ABOUT EQUAL PARTS DIRT AND WATER AND HOLY BULL DID THE SAME TO VALIANT NATURE BY THREEANDAHALF LENGTHS IN THE BLUE GRASS AT THE SAME DISTANCE UNDER PLEASANTER CONDITIONS KANDALY WHO ALSO CAME IN HIGHLY TOUTED WAS A FAROFF FOURTH HERE BOTH WINNERS ARE SCHEDULED TO GO TO LOUISVILLE FOR THE MAY 7 RUN FOR THE ROSES AT 1 1/4 MILES WITH SANTA ANITA DERBY WINNER BROCCO WHO TOOK THE DAY OFF THEY'RE EXPECTED TO DOMINATE THE BETTING ACTION OFF SATURDAY'S TRIUMPH OVER A STRONGER FIELD HOLY BULL EMERGED AS THE LIKELY PEOPLE'S CHOICE BUT IT ALSO WAS APPARENT THAT THE LONGSTRIDING GRAY COLT WILL CARRY A PROBLEM ALONG WITH THE FAVORITE'S MANTLE THAT'S BECAUSE HORSES WHO LIKE TO RUN ON THE LEAD AS BOTH HE AND IRGUN DO USUALLY DON'T RELISH COMPANY THERE WA JIMMY CROLL HOLY BULL'S 74YEAROLD OWNER AND TRAINER ACKNOWLEDGED AS MUCH POSTWIN WHAT DID HE THINK OF IRGUN'S RACE HE WAS ASKED THAT HORSE RUNS LIKE MY HORSE DOES HE REPLIED WITH A SHAKE OF THE HEAD THERE IS HOWEVER REASON TO DOUBT WHETHER IRGUN OR ANY THOROUGHBRED IN THE LAND RUNS LIKE HOLY BULL HIS ONLY DEFEAT IN AN EIGHTRACE CAREER CAME FEB 19 AT GULFSTREAM PARK IN FLORIDA WHERE AFTER LEADING HE INEXPLICABLY SLOWED TO SIXTH PLACE IN THE FOUNTAIN OF YOUTH STAKES BUT OTHERWISE HE'S NEVER BEEN HEADED MORE THAN MOMENTARILY EARLY ON THE SON OF GREAT ABOVE IF HE'D BEEN A FILLY HE'D HAVE BEEN NAMED HOLY COW HAS INCREASED HIS WINNING MARGIN IN THE LATE GOING IN ALL BUT ONE OF HIS VICTORIES INCLUDING SATURDAY'S INDICATING THE PRESENCE OF UNTAPPED RESOURCES THAT IMPRESSION IS UNDERLINED BY THE FACT HE'S NEVER BEEN RIDDEN HARD THERE WAS NO NEED FOR STERNER MEASURES ON SATURDAY IN WHAT TRADITIONALLY HAS BEEN THE FOREMOST KENTUCKY DERBY PRELIM THE BLUE GRASS WORTH 500000 HAS BEEN RUN 70 TIMES NOW AND THREE OF THE LAST FOUR WINNERS IN LOUISVILLE STOPPED HERE EN ROUTE IT HELPS THAT THE RACE IS IN KENTUCKY JUST A SHORT TRAILER HAUL FROM CHURCHILL DOWNS HORSEMEN ESPECIALLY OLDER ONES ALSO LIKE KEENELAND FOR ITS OLDTIMEY FEATURES SUCH AS THE LACK OF A NOISY PA SYSTEM HOLY BULL WENT OFF AT 3TO5 WHICH WAS REMARKABLE BECAUSE OF THE PRESENCE IN THE FIELD OF CALIFORNIABASED VALIANT NATURE AND KANDALY THE LOUISIANA DERBY CHAMP THE FORMER WAS A FRONTRUNNING WINNER OF THREE OF FOUR PREVIOUS OUTINGS WHOSE VICTIMS INCLUDED THE ABOVEMENTIONED BROCCO CURRENT PRIDE OF THE LEFT COAST VALIANT NATURE LATER WAS BEATEN BY BROCCO THE LATTER IS A STRETCH RUNNER WHOSE TRAINER AND PART OWNER LOUIE ROUSSEL III HAD VERBALLY LICKED HIS CHOPS AT THE PROSPECT OF HIS STEED ZIPPING PAST THE TUCKEREDOUT PACEMAKERS THAT IS NOT WHAT HAPPENED STARTING FROM THE INSIDE HOLY BULL GAINED THE LEAD IN THE RACE'S OPENING STRIDES AND KEPT IT THROUGHOUT VALIANT NATURE HAD TAKEN SECOND PLACE BY THE ONEQUARTERMILE MARK JUST OUTSIDE OF HOLY BULL AND SEEMED READY TO CHALLENGE ON THE LAST TURN BUT NEVER GOT CLOSE AS HOLY BULL DREW AWAY KANDALY WAS SO FAR BEHIND BY THE HALFMILE MARK THAT IT DIDN'T MATTER WHAT HE DID THEREAFTER EVEN LATE RUNNERS HAVE TO STAY WITHIN SIGHT OF THE LEADERS HOLY BULL'S KENTUCKY DERBY PROSPECTS ARE ENHANCED BY HIS HUMAN RETINUE JOCKEY SMITH WAS THE NATION'S LEADING RIDER IN 1993 IN TERMS OF THE MONEY HIS HORSES WON 14024815 AND SET A RECORD FOR MOST STAKES WON WITH 62 MODESTY IS ONE OF HIS ATTRIBUTES ASKED WHAT HE HAD DONE TO COMPLEMENT HOLY BULL ON SATURDAY HE ANSWERED STAY OUT OF HIS WAY TRAINER CROLL IS A VETERAN HORSEMAN WHO'S NOT EASILY CARRIED AWAY HE'S HAD NUMEROUS STAKES WINNERS IN A 54YEAR CAREER BUT THINKS THE DERBY IS TOO MUCH TOO SOON FOR EVEN VERY GOOD THREEYEAROLDS AND HAD SEEN FIT TO TAKE BUT TWO TO THE RACE PREVIOUSLY ONE WAS BET TWICE WHO FINISHED SECOND IN THE 1987 EVENT AND THE PREAKNESS AND WON THE BELMONT CROLL BECAME HOLY BULL'S OWNER WHEN MRS RACHEL CARPENTER FOR WHOM HE'D TRAINED FOR MANY YEARS DIED LAST SUMMER AND LEFT HER HORSES TO HIM HE ADMITTED TO BEING AS CURIOUS AS THE NEXT PERSON ABOUT WHAT'LL HAPPEN MAY 7 BUT NOTED HE FOUND VALIANT NATURE'S CALIFORNIA HISTORY ENCOURAGING VALIANT NATURE AND BROCCO TOOK TURNS BEATING ONE ANOTHER AND I DIDN'T KNOW IF THE WEST COAST HORSES WERE ALL CHAMPS OR JUST ALL ABOUT THE SAME SAID HE NOW I'M HOPING THEY'RE ALL ABOUT THE SAME 9404180073 940418 REVIEW & OUTLOOK EDITORIAL ASIDES A DIRGE FOR KURT WHILE MTV'S DIRGES FOR DEAD GRUNGER KURT COBAIN PLAY ON SOME SAD SONGS DON'T CHANGE SOME 25 YEARS AND COUNTLESS ANTIDRUG CAMPAIGNS LATER THE POET OF THE YOUTH IS STILL A MESSEDUP FREAK WHO KILLS HIMSELF GENERATIONS CHANGE THE COUNTERCULTURE ENDURES THUS RIVER PHOENIX AND HIS SPEEDBALL THUS DARRYL STRAWBERRY'S TIME OUT MOURNING IT SEEMS DOES NOT BEGET UNDERSTANDING 9404180072 940418 LETTERS TO THE EDITOR PLEASE NOT AGAIN RESPONDING TO YOUR MARCH 18 PAGEONE ARTICLE A FARAWAY WAR ON AMERICANS' INACTION ON BOSNIA THE TWO WORLD WARS WERE STARTED IN THAT SAME AREA TO SAY NOTHING OF THE ETHNIC FIGHTING THAT HAS GONE ON FOR HUNDREDS OF YEARS IF THESE FACTIONS CANNOT LEARN BY THEMSELVES TO LIVE TOGETHER WE AS A NATION CANNOT HELP THEM MANY AMERICANS FEEL AS I DO I HAD TWO UNCLES IN WORLD WAR I A HUSBAND IN WORLD WAR II MY BROTHERINLAW SERVED IN KOREA AND MY SON IN VIETNAM NOW YOU WANT ME TO HAVE GRANDSONS IN BOSNIA NO THANKS MATERIAL HELP SUCH AS ARMS AND FOOD SHOULD BE PROVIDED BUT BEYOND THAT THE NATIONS OF THE FORMER YUGOSLAVIA MUST SOLVE THIS THEMSELVES 9404180071 940418 SMALL STOCK FOCUS TECHNOLOGIES FACE PRESSURE FROM INVESTORS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL ON THE HEELS OF THE PUMMELING THAT TECHNOLOGY STOCKS TOOK FOLLOWING DISAPPOINTING FIRSTQUARTER EARNINGS AT MOTOROLA AND AN UNEXPECTEDLY LARGE LOSS AT DIGITAL EQUIPMENT IT LOOKS AS IF INVESTORS WILL BE DEMANDING IMPRESSIVE PROFITS FROM SMALLCAPITALIZATION TECHNOLOGY ISSUES THE MARKET IS NOT TAKING BAD NEWS WELL SAYS GARY ANDERSON A TECHNICAL ANALYST AND PARTNER IN ANDERSON & LOE A EUGENE OREBASED CONSULTANCY FOR MONEY MANAGERS THERE'S NO WAY THAT STOCKS LIKE MOTOROLA AND INTEL CAN MOVE DOWN WITHOUT SIGNALING A GENERAL DECLINE IN TECHNOLOGY STOCKS MOTOROLA'S SHARES HAVE DROPPED A STEEP 154 SINCE MONDAY WHEN THE COMPANY REPORTED SLIGHTLY WEAKERTHANEXPECTED RESULTS THE COMMUNICATIONS AND CHIPMAKING COMPANY MISSED EXPECTATIONS BY JUST A PENNY INTEL'S SHARES WERE POUNDED THURSDAY ON NEWS THAT INTERNATIONAL BUSINESS MACHINES HAD SIGNED A PRODUCTION PACT WITH UPSTART CHIP MAKER CYRIX TAKING AIM AT INTEL'S PENTIUM CHIP MARKET EARLIER THIS YEAR INTEL HAD SENT TREMORS THROUGH THE TECHNOLOGY ARENA WHEN IT REPORTED IN LATE JANUARY WEAKERTHANEXPECTED FOURTHQUARTER EARNINGS MISSING ANALYSTS' ESTIMATES BY FOUR CENTS A SHARE THE SMALLSTOCK TECHNOLOGY SECTOR LARGELY SHOOK OFF INTEL'S BLUES POSTING A MARGINAL 07 FIRSTQUARTER DECLINE AMID THE GENERAL MARKET SLIDE BUT SMALLCAP TECHNOLOGY ISSUES HAVE BEEN FLAGGING SINCE LATE MARCH THE RUSSELL 2000 INDEX OF SMALL STOCKS HAS BACKED OFF 77 FROM ITS PEAK SET MARCH 18 WHILE THE TECHNOLOGY SECTOR WITHIN THE INDEX IS OFF 13 FROM ITS MARCH 18 LEVELS AND THE SLIDE COULD INTENSIFY SHOULD THE BROADER MARKET MOVE LOWER IN THE WEEKS AHEAD PERENNIALLY VOLATILE TECHNOLOGY STOCKS WILL BE SOME OF THE POORER PERFORMERS IN THAT DOWN MOVE MR ANDERSON PREDICTS THAT WOULD MEAN THE RUSSELL 2000 SOME 14 OF WHICH IS MADE UP OF TECH STOCKS WOULD SURRENDER ITS YEARTODATE RELATIVE STRENGTH ADVANTAGE OVER THE BROADER STANDARD & POOR'S 500STOCK INDEX THE RUSSELL 2000 IS DOWN 33 YEARTODATE THE S&P IS OFF 43 AND THE DOW JONES INDUSTRIAL AVERAGE IS DOWN A SMALLER 25 OTHER ANALYSTS ARE LESS CONCERNED ABOUT TECH SHARES AND LOOK FOR A REBOUND PARTICULARLY IF INTEREST RATES STABILIZE BEN ZACKS EXECUTIVE VICE PRESIDENT OF ZACKS INVESTMENT RESEARCH IN CHICAGO SAYS HE HASN'T SEEN ANY SIGNIFICANT DOWNWARD REVISIONS OF TECHNOLOGY EARNINGS ESTIMATES WITH THE EXCEPTION OF DIGITAL EQUIPMENT WHOSE FIRSTQUARTER LOSS WAS FOUR TIMES LARGER THAN ANALYSTS HAD EXPECTED AND OF SYNOPTICS A LOCALAREA NETWORK MANUFACTURER WHOSE EARNINGS FELL SIX CENTS A SHARE BELOW FIRSTQUARTER ESTIMATES TECHNOLOGY COMPANIES HAVE BEEN EXCEEDING ESTIMATES FOR THE FIRST QUARTER MR ZACKS SAYS HE CITES A HOST OF UPSIDE EARNINGS SURPRISES REPORTED LAST WEEK INCLUDING THOSE FROM WELLFLEET COMMUNICATIONS TELLABS AND GENERAL INSTRUMENT AMONG SMALLCAPS ASPECT TELECOMMUNICATIONS AND ELECTRONICS FOR IMAGING ALSO OUTPACED ESTIMATES I THINK EARNINGS ARE GOING TO CONTINUE TO COME IN ON THE UPSIDE FOR THE TECHNOLOGY GROUP AS A WHOLE HE ADDS REBOUNDING DISKDRIVE MANUFACTURERS HE SAYS HAVE BEEN PARTICULARLY STRONG WITH SEAGATE TECHNOLOGY EXCEEDING CONSENSUS ESTIMATES BY 35 AND CONNER PERIPHERALS BY 90 AND WHILE MOTOROLA MAY HAVE DISAPPOINTED INVESTORS OTHER CHIP MAKERS HAVE BEATEN ESTIMATES ADVANCED MICRO DEVICES FOR EXAMPLE BESTED WALL STREET'S ESTIMATES BY 30 DESPITE SOME CONCERNS ABOUT A FLAT BOOKTOBILL RATIO A GAUGE OF DEMAND TRENDS FOR THE THREEMONTH PERIOD ENDING IN MARCH MANY ANALYSTS THINK SMALLCAP SEMICONDUCTOR SHARES ARE POSITIONED TO SNAP BACK FROM THEIR RECENT SLUMP THE CHIP ORDER FLOW IS DEFINITELY STRONG SAYS TOM THORNHILL OF MONTGOMERY SECURITIES IN SAN FRANCISCO REPORTED ORDERS ARE UP 25 YEAROVERYEAR AND FOR THE FIRST QUARTER THEY WERE UP 17 OVER THE FOURTH QUARTER REPORTED ORDERS ESPECIALLY FOR MEMORY CHIPS UNDERSTATE TRUE DEMAND CLAUDIA MOTT SENIOR SMALLSTOCK STRATEGIST FOR PRUDENTIAL SECURITIES IN NEW YORK THINKS SEMICONDUCTOR STOCKS WILL BE BUOYED IN THE WEEKS AHEAD BY STRONG FIRSTQUARTER EARNINGS ROBUST FOURTHQUARTER PERFORMANCE SHOULD HAVE CARRIED OVER INTO THE SUBSEQUENT THREEMONTH PERIOD SHE SAYS OF THE 30 COMPANIES WE FOLLOW AMONG SMALLCAP SEMICONDUCTORS AROUND 26 BEAT EXPECTATIONS IN THE FOURTH QUARTER AND ONLY 9 CAME IN BELOW ESTIMATES THOSE ARE VERY GOOD PERCENTAGES MS MOTT SAYS AND THERE'S A STRONG LIKELIHOOD THAT MANY OF THOSE COMPANIES THAT HAD GOOD NUMBERS WILL REPEAT THE PRUDENTIAL STRATEGIST EMPHASIZES THAT WALL STREET ANALYSTS HAVE KEPT THEIR EXPECTATIONS FOR SMALLCAP SEMICONDUCTORS' EARNINGS MOMENTUM IN CHECK SMALLCAP CHIP MAKERS POSTED AN EXTRAORDINARY 120 GROWTH RATE IN LAST YEAR'S FINAL QUARTER SOME 10 AHEAD OF ANALYSTS' ESTIMATES AT THE TIME THE STREET'S ESTIMATE FOR FIRSTQUARTER EARNINGS GROWTH IS AROUND 50 THAT'S STILL VERY STRONG GROWTH OFF THE HIGH BASE OF THE EARLIER QUARTER BUT IT SEEMS A REASONABLE NUMBER SHE SAYS MS MOTT IS ALSO LOOKING FOR SOLID EARNINGS RESULTS IN THE COMPUTER SOFTWARE AND COMPUTERSERVICE GROUPS THESE ARE AREAS WHERE EARNINGS WERE GOOD IN THE LAST QUARTER AND WHERE EXPECTATIONS ARE PRETTY REASONABLE SHE SAYS PRUDENTIAL SECURITIES ANALYSTS PARTICULARLY LIKE CHICAGOBASED SYSTEM SOFTWARE ASSOCIATES WHICH DEVELOPS MANUFACTURING APPLICATION SOFTWARE AND DALLASBASED RECOGNITION INTERNATIONAL WHICH MAKES SOFTWARE FOR PROCESSING BUSINESS TRANSACTIONS ACROSS A NETWORK MIKE SCHMIDT SENIOR ANALYST FOR SMALLCAP TECHNOLOGY STOCKS AT THE BROKERAGE FIRM PRUDENTIAL SAYS THE BEATENUP TECH SECTOR MIGHT NOW BE RIPE FOR BARGAINHUNTING AND SOME SUPPORTIVE SECTOR ROTATION MOVES AMONG INVESTORS SMALLCAP TECH STOCKS USED TO BE AT LOFTY LEVELS AT YEAR END BUT NOW MANY ARE TRADING NEAR THEIR 52WEEK LOWS HE POINTS OUT IF THE CYCLICAL STOCKS ARE PERCEIVED AS PEAKING THE TECH STOCKS MAY COME MORE INTO FAVOR HE SAYS FOR NOW AS THE MARKET CONTINUES TO MOVE SIDEWAYS MANY INVESTORS SEEM TO BE STAYING ON THE SIDELINES LOOKING FOR OPPORTUNE PICKS SAYS RALPH WANGER PRESIDENT OF WANGER ASSET MANAGEMENT IN CHICAGO THE TECH STOCKS ARE SLIDING IN A VERY SLOPPY MARKET AND SOME ARE GETTING PUNCHED OUT PRETTY WELL MR WANGER PORTFOLIO MANAGER OF THE SUCCESSFUL ACORN FUND SAYS THAT ALTHOUGH STOCK PRICES ARE GETTING TO THE POINT OF BEING SENSIBLE THEY'RE STILL NOT CHEAP WE WOULDN'T HURRY AND GO OUT AND BUY UNLESS THE STORY IS VERY GOOD HE'S KEEPING A CLOSE EYE ON SOLECTRON A MILPITAS CALIF COMPANY WHOSE SHARES FIND A PLACE IN HIS 4 BILLION PORTFOLIO IT'S A TERRIFIC COMPANY I MIGHT BUY MORE IF I CAN BUY AT THE RIGHT PRICE HE SAYS SOLECTRON IS A CONTRACT MANUFACTURER OF COMPUTER CIRCUIT BOARDS AND ELECTRIC SUBSYSTEMS WITH A BROAD RANGE OF INTERNATIONAL COMPUTER INDUSTRY CUSTOMERS THE SMALLCOMPANY STOCK MARKET USED THE BOND MARKET'S STEADINESS AS A SPRINGBOARD FOR A MODEST RALLY ALTHOUGH TWO KEY SMALLSTOCK INDEXES ENDED THE DAY WITH ONLY MARGINAL GAINS AND DECLINING ISSUES SLIGHTLY OUTPACED ADVANCERS TRADERS SAID THERE IS AN IMPROVING TONE TO THE SMALLCAPITALIZATION MARKET THE RUSSELL 2000 INDEX OF SMALLCAP STOCKS ENDED THE DAY UP 007 OR 003 AT 25015 AND THE NASDAQ COMPOSITE INDEX AT 72797 WAS UP 066 OR 009 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 010 OR 004 TO 24766 AND THE DOW JONES INDUSTRIAL AVERAGE ENDED AN UPANDDOWN DAY LOWER BY 178 OR 005 AT 366147 ON THE NASDAQ DECLINERS LED ADVANCING ISSUES 1550 TO 1481 ON VOLUME OF 279 MILLION SHARES DOWN FROM 313 MILLION THURSDAY NATIONAL MARKET VOLUME WAS A THIN 245 MILLION SHARES COMPARED WITH 281 MILLION THURSDAY TRADERS SAID THERE WERE NO REAL POCKETS OF STRENGTH OR WEAKNESS FRIDAY IN THE SMALLCOMPANY MARKET BUT THEY DID NOTE THAT SOME OF THE RECENTLY HARDHIT TECHNOLOGY ISSUES WERE MANAGING TO POST GAINS HUTCHINSON TECHNOLOGY FOR EXAMPLE A MAKER OF COMPUTER RIGID DISKDRIVE COMPONENTS WAS UP 2 1/4 OR 64 AT 37 1/4 AS HAD BEEN WIDELY EXPECTED COMPANIES THAT REPORT STRONG EARNINGS AND AN UPBEAT OUTLOOK HAVE BEEN AMONG THE TOP PERFORMERS ASPECT TELECOMMUNICATIONS ROSE IN RESPONSE TO THURSDAY'S NEWS THAT THE SAN JOSE CALIF CALLTRANSACTION SYSTEMS DEVELOPER SAID IT EARNED 37 CENTS A SHARE IN THE FIRST QUARTER WHICH COMPARES WITH 18 CENTS IN LAST YEAR'S FIRST QUARTER AND WITH EXPECTATIONS OF 32 CENTS THE STOCK WAS UP 3 1/2 OR 116 AT 33 5/8 ELECTRONICS FOR IMAGING A SAN MATEO CALIF IMAGING COMPANY ALSO WAS UP ON EARNINGS NEWS IT ROSE 1/8 OR 08 TO 16 3/8 TRADING AS HIGH AS 17 3/4 FOLLOWING THURSDAY'S LATE NEWS THAT IT EARNED 33 CENTS A SHARE IN THE FIRST QUARTER COMPARED WITH 23 CENTS IN THE YEAREARLIER PERIOD AND ANALYSTS' EXPECTATIONS OF 28 CENTS PLATINUM TECHNOLOGY WAS UP 1 1/4 OR 98 AT 14 AFTER PRUDENTIAL RAISED ITS RATING ON THE SOFTWARE COMPANY TO BUY FROM HOLD MTC ELECTRONIC TECHNOLOGIES DROPPED 1 1/8 OR 32 TO 2 3/8 AFTER IT SAID IT EXPECTS TO REPORT A SUBSTANTIAL LOSS FOR THE FISCAL YEAR ENDED JAN 31 1994 THE ELECTRONIC EQUIPMENT IMPORTER AND MARKETER SAID ITS FISCAL YEAR STATEMENTS WILL REFLECT SUBSTANTIAL WRITEOFFS AND CHARGES RESULTING FROM RECENT OPERATING CONDITIONS THAT ITS EXECUTIVE COMMITTEE NAMED A NONEXECUTIVE CHAIRMAN AND HAS INITIATED A RESTRUCTURING PROGRAM TO DEAL WITH RECENT CONDITIONS LARRY BAUMAN CONTRIBUTED TO THIS ARTICLE 9404180070 940418 LETTERS TO THE EDITOR RESCUE IN SARAJEVO I READ WITH FASCINATION GERALDINE BROOKS'S MARCH 17 PAGEONE ARTICLE REGARDING VOLUNTEERS FROM VIENNA ASSISTING SARAJEVAN JEWS I WOULD LIKE TO ADD THAT IT IS THE AMERICAN JEWISH JOINT DISTRIBUTION COMMITTEE JDC A US RESCUE AND RELIEF ORGANIZATION THAT SPONSORS THE SOUP KITCHENS AND PHARMACIES IN SARAJEVO JDC ALSO ESTABLISHED A RADIO LINK WHICH IS OPEN TO ALL GROUPS AND IS ONE OF THE ONLY WAYS FOR EXILED SARAJEVANS TO KEEP IN TOUCH WITH RELATIVES IN THE CITY JDC ALSO SPONSORED AND CARRIED OUT 11 NONSECTARIAN EVACUATIONS IN THE PAST TWO YEARS BRINGING 2104 PEOPLE TO SAFETY 9404180069 940418 LETTERS TO THE EDITOR WELFARE MONSTER CAROL WEAVER'S APRIL 6 EDITORIALPAGE ARTICLE WELFARE REFORM IS LIKELY TO LEAVE THIS MONSTER INTACT AND A SWELLING CHORUS OF OTHER OPINIONS MAKE IT AMPLY CLEAR THAT OUR SYSTEM HAS EVOLVED FROM A WELLINTENTIONED PLAN TO HELP THE NEEDY INTO A HYDRAHEADED MONSTER KILLING THIS MONSTER WILL REQUIRE A COMPREHENSIVE APPROACH I WOULD LIKE TO SHARE A COUPLE OF IDEAS WITH YOUR READERS FIRST WE SHOULD REQUIRE THAT EVERY ABLEBODIED WELFARE RECIPIENT EARN BENEFITS BY EITHER WORKING FOR LOCAL GOVERNMENT OR GETTING AN EDUCATION SECOND WE SHOULD BEGIN THINKING ABOUT INNOVATIVE WAYS TO MAKE USE OF PRIVATE INDUSTRY CREATING INCENTIVES FOR COMPANIES WILLING TO HIRE AND TRAIN SOMEONE NOW ON WELFARE THIS SHOULD HELP MAKE IT POSSIBLE FOR PEOPLE TO GET INTO THE PRIVATE SECTOR WITH REAL JOB SKILLS 9404180068 940418 GLOBAL VIEW WHY EUROPEANS ARE BEING SHORTED ON MIRACLE DRUGS BY GEORGE MELLOAN DR JUERGEN DREWS IS PRESIDENT OF INTERNATIONAL RESEARCH & DEVELOPMENT AT HOFFMANNLA ROCHE INC A PHARMACEUTICAL COMPANY WITH ONE FOOT IN EUROPE AND THE OTHER IN THE US HE AND OTHER RESEARCHERS ARE EMPLOYING ONE OF THE MOST EXCITING NEW FIELDS OF SCIENCE BIOTECHNOLOGY IN THE DEVELOPMENT OF NEW WONDER DRUGS BY MANIPULATING GENETIC MATERIAL SCIENTISTS HAVE OPENED UP NEW HOPES FOR FUTURE TREATMENTS OF SUCH DISEASES AS AIDS ALZHEIMER'S CYSTIC FIBROSIS AND CANCER BIOTECHNOLOGY ALREADY HAS PRODUCED IMPORTANT NEW DRUGS SUCH AS CHIRON CORP'S BETASERON FOR TREATING MULTIPLE SCLEROSIS BUT AS WITH ALMOST EVERYTHING ELSE THESE DAYS POLITICS WILL DETERMINE HOW QUICKLY THE GREAT POTENTIAL OF THIS NEW SCIENCE WILL BE REALIZED AND HOW SOON MORE DISCOVERIES WILL FIND THEIR WAYS TO PEOPLE WHO HAVE LIFETHREATENING ILLNESSES AT THE MOMENT THE BIOTECHNOLOGY INDUSTRY IS GOING THROUGH A ROUGH PATCH AS INVESTORS AWAIT NEWS OF WHETHER THE CLINTON HEALTH CARE PROGRAM AND AL GORE'S ENVIRONMENTAL POLICIES WILL CLAMP STIFLING PRICE CONTROLS ON BIOTECH AND INFLICT NEW COSTS AT THE SAME TIME THE EQUATION IS SIMPLE BIOTECH RESEARCH IS A HIGHRISK ENTERPRISE MOST OF IT IS DONE BY SCIENTISTENTREPRENEURS WHO DEPEND HEAVILY ON RISK CAPITAL RISK CAPITAL INVESTORS WILL ONLY CHANCE LOSING ALL THEIR MONEY IF THERE IS ALSO THE POSSIBILITY OF A BIG JACKPOT IF THAT CHANCE IS DIMINISHED BY GOVERNMENT PRICE CONTROLS ON THE END PRODUCT OR LONG AND COSTLY DELAYS IN APPROVALS THERE WILL BE LESS RISK CAPITAL LESS RESEARCH AND FEWER NEW DISCOVERIES WHICH BRINGS US BACK TO DR DREWS AND HIS TWOCONTINENT PERSPECTIVE AT THE INTERNATIONAL BIOINDUSTRY FORUM IN WASHINGTON LAST WEEK HE REPORTED THAT THE US BIOTECH INDUSTRY ATTRACTED 365 MILLION IN VENTURE CAPITAL IN 1992 BIOTECH FIRMS IN EUROPE COULD GET ONLY A MEASLY 67 MILLION 18 OF WHAT US FIRMS ATTRACTED WHY THERE IS NO SHORTAGE OF VENTURE CAPITAL GENERALLY IN EUROPE THE TOTAL AMOUNT INVESTED IS ACTUALLY CONSIDERABLY HIGHER THAN IN THE US BUT ONLY A MINUTE AMOUNT 14 WENT INTO BIOTECH DESPITE THE ENORMOUS POTENTIAL IN THIS INDUSTRY FOR BREAKTHROUGH DISCOVERIES EUROPE HAS NO SHORTAGE OF SCIENTIFIC TALENT OR RESEARCH INSTITUTES EITHER BY THE WAY FOR WHAT IT'S WORTH GOVERNMENTS DOLE OUT SIZABLE RESEARCH SUBSIDIES TO FAVORED INSTITUTIONS A LOOK AT GERMANY EUROPE'S LARGEST INDUSTRIAL POWER AND ONCE A MAJOR CENTER FOR SCIENCE OFFERS SOME CLUE AS TO WHAT IS GOING WRONG A PHARMACEUTICAL TRADE GROUP REPORTS THAT GERMANY'S SHARE OF THE WORLD'S NEW DRUG PATENTS DROPPED PRECIPITOUSLY TO 8 OF THE WORLD TOTAL IN THE YEARS 19861990 FROM 16 IN THE FIVE YEARS PRECEDING DURING THOSE SAME PERIODS THE US SHARE ROSE TO 26 FROM 25 AND THE JAPANESE SHARE TO 25 FROM 21 TWO BIG DRUG AND CHEMICAL COMPANIES HOECHST AG AND BASF AG HAVE BEEN STEADILY MOVING RESEARCH AND PRODUCTION OUT OF GERMANY THERE ARE TWO EXPLANATIONS FOR THIS SHARP DECLINE IN GERMAN PHARMACEUTICAL RESEARCH UNDER PRESSURES FROM THE GREENS PARTY GERMANY HAS IMPOSED STRINGENT ENVIRONMENTAL REGULATIONS ON CHEMICAL CONCERNS MORE TO THE POINT SO FAR AS BIOTECH RESEARCH IS CONCERNED GERMANY HAS ADOPTED ESPECIALLY PERVERSE CONTROLS ON THE COST OF DRUGS PAID FOR BY ITS NATIONAL HEALTH SYSTEM THESE METHODS HAVE GOTTEN MORE HEAVYHANDED IN RECENT YEARS AS GERMANY HAS MADE THE DRUG INDUSTRY A SPECIAL TARGET OF ITS EFFORTS TO RESTRAIN A BALLOONING FEDERAL GOVERNMENT DEFICIT THROUGHOUT EUROPE INDEED THE PRIVATE DRUG INDUSTRY IS A FAVORITE PLAYGROUND FOR GOVERNMENT COSTCUTTERS BECAUSE IT EXISTS OUTSIDE THE NATIONAL HEALTH BUREAUCRACIES USUALLY MAKES MONEY AND IS EASILY DEMAGOGUED OF COURSE DRUGS ALSO HAPPEN TO BE AN AREA WHERE PRICE CONTROLS CAN DO GREAT HARM TO THE QUALITY OF HEALTH CARE AVAILABLE TO A COUNTRY'S RESIDENTS BUT THE VOTERS AREN'T SUPPOSED TO KNOW THAT IN GERMANY'S CASE SOME 90 OF THE POPULATION IS COVERED BY GOVERNMENTSPONSORED HEALTH CARE PLANS A SYSTEM MUCH ADMIRED BY THE CLINTONS LAST YEAR THE GOVERNMENT SLASHED ITS DRUG COST REIMBURSEMENTS TO PUBLIC HEALTH INSURERS 11 FROM THE YEAR BEFORE WITH THE RESULT THAT DOCTORS BEGAN PRESCRIBING THE CHEAPEST DRUGS POSSIBLE SALES OF THE MORE EXPENSIVE WONDER DRUGS TUMBLED AND THEY HAVE BECOME INCREASINGLY HARD FOR ORDINARY GERMANS TO GET GERMANS IN PRIVATE HEALTH INSURANCE PLANS STILL CAN OBTAIN THEM BUT THEY ARE ONLY 10 OF THE POPULATION IT IS NOT CLEAR THAT THE GERMAN GOVERNMENT SAVED MUCH MONEY BECAUSE THE CAP ON PRESCRIPTIONS LED TO AN INCREASE IN HOSPITAL ADMISSIONS AS DOCTORS AND PATIENTS TRIED TO ESCAPE THE PRESCRIPTION LIMITS OTHER EUROPEAN NATIONAL HEALTH PLANS AREN'T FARING MUCH BETTER IN ITALY AND THE UNITED KINGDOM STRICTER AND STRICTER LIMITS ON THE DRUGS ELIGIBLE FOR GOVERNMENT REIMBURSEMENTS HAVE MEANT THAT THE MOST ADVANCED DRUGS ARE MAINLY AVAILABLE ONLY TO THOSE WHO CAN AFFORD TO PAY FOR THEM OUT OF POCKET SO HEALTH SYSTEMS THAT WERE SUPPOSED TO BE EGALITARIAN NOW ARE LESS SO THEM THAT HAS GETS AS THE OLD SAYING GOES IF THE CLINTON HEALTH CARE PROGRAM SHOULD PASS IN ITS PRESENT FORM IT IS REASONABLE TO EXPECT SIMILAR ADVERSE CONSEQUENCES IN THE US THE PROPOSED BILL WOULD SET UP AN ADVISORY COUNCIL ON BREAKTHROUGH DRUGS TO DETERMINE THE REASONABLENESS OF PRICES OR IN OTHER WORDS TO CONTROL THEM IF DRUG COMPANIES FAILED TO AGREE TO THE PRICES PRESCRIBED BY THE BUREAUCRATS THEIR DRUGS COULD BE BANNED FROM THE REIMBURSEMENT LIST JUST AS MANY SUCH DRUGS ARE EXCLUDED FROM REIMBURSEMENT LISTS IN EUROPE IT DIDN'T TAKE LONG FOR THE NEWS OF THIS PLAN TO KNOCK THE BLOCKS OUT FROM UNDER THE SHARE PRICES OF BIOTECH FIRMS DAMPING THEIR ACCESS TO RISK CAPITAL AS THE JOURNAL'S RHONDA L RUNDLE REPORTED EARLIER THIS MONTH THE INDUSTRY'S ABILITY TO RAISE CAPITAL THIS YEAR IS LIKELY TO BE WELL BELOW THE ESTIMATED 6 BILLION NEEDED TO AVOID A REDUCTION IN RESEARCH AND TESTING WITH THEIR COMPLEX PRICE CONTROL BUREAUCRACIES MANY EUROPEANS PARADOXICALLY GET BOTH LOWER DRUG QUALITY AND HIGHER PRICES THAN DO AMERICANS PATRICIA M DANZON A MEDICAL RESEARCHER AT THE UNIVERSITY OF PENNSYLVANIA'S WHARTON SCHOOL WROTE ON THESE PAGES IN FEBRUARY THAT US DRUG PRICES PER COMPARABLE DOSE ARE ON AVERAGE CHEAPER THAN IN CANADA GERMANY SWITZERLAND AND SWEDEN THAT'S NOT SURPRISING COMPARATIVELY THE US HAS BEEN A FOUNTAIN OF BIOTECH INNOVATION VOLUME CUTS UNIT COSTS AND GREATER EFFECTIVENESS OF MODERN DRUGS CAN LOWER TREATMENT COSTS AS EUROPE HAS DEMONSTRATED HOWEVER ALL THAT CAN BE DESTROYED WITH A MERE STROKE OF A REGULATOR'S PEN 9404180067 940418 CANADA'S LOW INFLATION FAILS TO BOOST COUNTRY'S CURRENCY OR ITS BOND PRICES BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADA'S INFLATION RATE HAS DROPPED TO ITS LOWEST LEVEL IN MORE THAN 30 YEARS BUT THE IMPRESSIVE PRICE PERFORMANCE IS DOING LITTLE TO BOOST CANADIAN BONDS OR THE BELEAGUERED CANADIAN DOLLAR STATISTICS CANADA A GOVERNMENT AGENCY REPORTED FRIDAY THAT FOR THE SECOND CONSECUTIVE MONTH CONSUMER PRICES IN MARCH WERE UP ONLY 02 FROM A YEAR EARLIER CANADA'S INFLATION RATE IS ONE OF THE LOWEST AMONG INDUSTRIAL COUNTRIES AND IT IS EXPECTED TO REMAIN LOW MAINLY BECAUSE THE ECONOMY IS OPERATING WELL BELOW CAPACITY LATELY THE RISK HAS BEEN DEFLATION NOT INFLATION SAID WILLIAM ROBSON SENIOR POLICY ANALYST AT CD HOWE INSTITUTE A TORONTOBASED ECONOMIC RESEARCH ORGANIZATION THE DROP IN INFLATION HAS FAILED TO REVERSE A TWOYEAR SLIDE IN THE CANADIAN DOLLAR IT FELL FRIDAY TO 7213 US CENTS FROM 7247 CENTS THURSDAY DESPITE BUYING SUPPORT FROM THE BANK OF CANADA CANADIAN BOND PRICES ALSO BRUSHED OFF THE LATEST CONSUMER PRICE REPORT CLOSING NARROWLY MIXED FRIDAY WITH INFLATION SO LOW INVESTORS ARE GETTING A HIGH REAL RETURN FROM CANADIAN BONDS ALTHOUGH CANADA'S INFLATION RATE IS SUBSTANTIALLY LOWER THAN THE FIRSTQUARTER US INFLATION RATE OF 25 THE YIELD ON 30YEAR CANADIAN GOVERNMENT BONDS FRIDAY WAS 115 PERCENTAGE POINTS HIGHER THAN ON COMPARABLE US BONDS CANADIAN BORROWERS HAVE TO PAY A STEEP PRICE FOR CANADIAN FUNDS PARTLY BECAUSE OF INVESTOR CONCERNS OVER THE BIG DEBT OF THE FEDERAL AND PROVINCIAL GOVERNMENTS THIS DEBT ABOUT EQUALS CANADA'S GROSS DOMESTIC PRODUCT OR THE TOTAL MARKET VALUE OF THE COUNTRY'S OUTPUT OF GOODS AND SERVICES INVESTORS ALSO ARE CONCERNED THAT THE SEPARATIST PARTI QUEBECOIS WILL WIN QUEBEC'S PROVINCIAL ELECTION LATER THIS YEAR AND LAUNCH A CAMPAIGN TO PULL QUEBEC OUT OF CANADA CANADA'S DEBT PROBLEM IS COMPOUNDED BY THE BIG FOREIGN HOLDING OF CANADIAN DEBT SECURITIES FOREIGN INVESTORS HOLD MORE THAN 42 OF CANADIAN GOVERNMENT BONDS MOODY'S INVESTORS SERVICE INC HAS PUT THE CANADIAN GOVERNMENT'S TRIPLEA FOREIGN CURRENCY DEBT RATING UNDER REVIEW FOR A POSSIBLE DOWNGRADE THE NEW YORKBASED CREDIT RATING AGENCY INDICATED THAT IT WAS CONCERNED OVER THE POTENTIAL CONSEQUENCES OF A FOREIGN SELLOFF OF CANADIAN BONDS KARIM BASTA A SENIOR ECONOMIST AT NEW YORKBASED MERRILL LYNCH & CO SAID FOREIGN INVESTORS WOULD HAVE LITTLE REASON TO ENTER THE CANADIAN BOND MARKET IF CANADIAN INFLATION WEREN'T LOW CRITICS OF THE BANK OF CANADA'S INFLATIONREDUCTION STRATEGY TEND TO FORGET THAT HE SAID THE BANK OF CANADA IS COMMITTED TO KEEPING INFLATION WITHIN A TARGET BAND OF 1 TO 3 UNTIL THE END OF 1998 AFTER 1998 THE COUNTRY IS TO MOVE TO PRICE STABILITY WHICH HASN'T YET BEEN DEFINED CANADA'S EXCEPTIONALLY LOW INFLATION RATE IN FEBRUARY AND MARCH RESULTED PARTLY FROM A CUT IN CIGARETTE TAXES TO CURB SMUGGLING IF CIGARETTE TAXES HADN'T BEEN CUT MARCH CONSUMER PRICES WOULD HAVE BEEN UP 15 FROM A YEAR EARLIER STATISTICS CANADA SAID 9404180066 940418 ECONOMY TRACKING THE ECONOMY KEY STATISTICS SCHEDULED TO BE RELEASED THIS WEEK 9404180065 940418 DAMMED YANGTZE DESPITE VAST OBSTACLES CHINESE MOVE TO TAP POWER OF HISTORIC RIVER GIANT HYDROELECTRIC PROJECT WOULD DISPLACE A MILLION AND CREATE AN INLAND SEA RAISING MONEY IS DIFFICULT BY JOSEPH KAHN STAFF REPORTER OF THE WALL STREET JOURNAL SANDOUPING CHINA FOR THE CENTRAL PLANNERS OF CHINA THE THREE GORGES DAM IS A DREAM COME TRUE CHINA HASN'T ATTEMPTED A PROJECT OF THIS SCALE SINCE THE GREAT WALL AND THE GRAND CANAL NAMED FOR THE SCENIC STRETCH OF THE YANGTZE RIVER IT WILL IRREVOCABLY ALTER THE DAM HAS TAKEN ON NEARLY SACRED IMPORTANCE FOR CHINESE LEADERS A MONUMENT TO THE GREATNESS OF MODERN CHINA IT WOULD BE THE LARGEST HYDROELECTRIC DAM IN THE WORLD A 12MILE STRETCH OF CONCRETE CREATING A NARROW INLAND SEA 370 MILES LONG AS A RESERVOIR THE DAUNTING FEAT OF ENGINEERING WOULD DISPLACE 12 MILLION PEOPLE AND COST MORE THAN VIRTUALLY ANY OTHER SINGLE CONSTRUCTION PROJECT IN HISTORY ALL OF WHICH SEEMS TO ADD TO ITS ALLURE WE WILL SURPRISE THE WORLD SAYS LU YOUMEI PRESIDENT OF THE STATEOWNED THREE GORGES CORP VERY FEW COUNTRIES COULD BUILD A DAM OF THIS SIZE CHINA HAS THE ABILITY SUCH SELFASSURANCE COULD BE THE DAM'S DOWNFALL SO DETERMINED ARE CHINA'S LEADERS TO BUILD THIS VAST PROJECT THAT CRITICS SAY THEY MAY HAVE NEGLECTED AN EQUALLY MONUMENTAL QUESTION WILL IT BE ECONOMICALLY VIABLE WITH EARLY CONSTRUCTION UNDER WAY THE PRICE TAG CONTINUES TO SOAR ONE CRITIC CONTENDS THE REAL COST COULD TOTAL 77 BILLION A SUM SO GREAT THE EXTRAVAGANCE COULD DAMAGE INSTEAD OF SHOWCASE CHINA'S RECENT ECONOMIC MIRACLE OTHER OBSTACLES LOOM THE THREE GORGES CHINA'S EQUIVALENT OF THE GRAND CANYON IS ONE OF THE CRADLES OF CHINESE CIVILIZATION GENERATIONS OF ARTISTS HAVE DEPICTED ON SCROLLS THE SIMPLE LIFE OF PEASANTS IN THE REGION THEIR RIVERSIDE FIELDS OF YELLOW RAPESEED AND GRAIN MADE TINY AGAINST THE CLOUDSHROUDED PEAKS AND THE SHEER BARREN GORGES ENVIRONMENTALISTS WORLDWIDE HAVE LED A PROTRACTED CAMPAIGN AGAINST THE DAM THEY SAY THAT THE RESERVOIR WOULD SUBMERGE SEVERAL THOUSAND YEARS OF HUMAN HISTORY AND DESTROY THE ECOSYSTEM OF THE SWIFTFLOWING YANGTZE THREATENING THE HABITAT OF SUBSISTENCE FARMERS AND A NUMBER OF ENDANGERED ANIMAL SPECIES SUCH AS THE RIVER DOLPHIN AND THE SIBERIAN WHITE CRANE AND TECHNICAL PROBLEMS ABOUND RIVERBORNE SILT THE NATURAL ENEMY OF ALL DAMS MAY PROVE MORE TROUBLESOME AND COSTLY THAN PLANNERS INITIALLY ACKNOWLEDGED RESETTLING A HUGE AND POOR POPULATION HAS PROVED MORE EXPENSIVE AND POLITICALLY SENSITIVE THAN EXPECTED AND SOME ANALYSTS INCLUDING ONETIME SUPPORTERS BELIEVE INFLATED COSTS HAVE ALREADY MADE THE PROJECT A MONEYLOSING PROPOSITION THAT SUCH CONCERNS HAVE BEEN SUBMERGED IN THE HOOPLA OVER THE DAM UNDERSCORES THAT THESE ARE HEADY DAYS FOR CHINA DENG XIAOPING'S MARKETORIENTED REFORMS REPUDIATED SOME OF THE MOST DISASTROUS CAMPAIGNS OF MAO TSETUNG BUT NOT THE IDEA OF GRANDIOSE CAMPAIGNS TODAY GOVERNMENT OFFICIALS AND NEWSPAPERS BOAST OF BUILDING THE NEXT MANHATTAN COMPLETE WITH ASIA'S TALLEST SKYSCRAPER IN SHANGHAI OF CREATING THE WORLD'S NEXT SONY BY SUBSIDIZING A GROUP OF ELECTRONIC FIRMS AND OF MAKING CHINA THE WORLD'S LARGEST MARKET FOR AUTOMOBILES IN A FEW YEARS FOR SWEEPING VISION AND SHEER AUDACITY THE THREE GORGES DAM TOPS THE LIST SUN YATSEN THE CHINESE NATIONALIST HERO FIRST PROPOSED THE THREE GORGES PROJECT 70 YEARS AGO THE KUOMINTANG GOVERNMENT OF CHIANG KAISHEK EXPLORED THE IDEA MAO ADDED HIS SUPPORT WRITING A POEM AFTER TOURING THE YANGTZE IN THE LATE 1950S SUPPORTERS SAY THE DAM WOULD HELP SOLVE TWO OF CHINA'S MORE VEXING PROBLEMS IN A NATION WHERE MANY FACTORIES CAN'T OPERATE LONG SHIFTS BECAUSE OF ENERGY SHORTAGES THE TURBINES WOULD GENERATE 18000 MEGAWATTS OF ELECTRICITY AS MUCH AS 10 AVERAGESIZE NUCLEAR POWER PLANTS AND THE DAM WOULD PROTECT THE DENSELY POPULATED DOWNSTREAM REACHES OF THE YANGTZE FROM HEAVY FLOODING IF ALL GOES ACCORDING TO SCHEDULE CONSTRUCTION OF THE 550FOOTHIGH DAM WILL TAKE TWO DECADES IT WILL PRODUCE A RESERVOIR STRETCHING FROM SANDOUPING A VILLAGE IN HUBEI PROVINCE TO THE CITY OF CHONGQING IN SICHUAN PROVINCE ABOUT AS LONG AS LAKE SUPERIOR BUT NARROWER THE RESERVOIR WILL FLOOD PARTS OF 20 CITIES AND COUNTIES AND REQUIRE THE RESETTLEMENT OF ONE IN EVERY 1000 CHINESE EARLY CONSTRUCTION CLEARING AWAY HILLS AND VILLAGES FOR THE DAM STRUCTURE BEGAN A YEAR AGO OFFICIALS HOPE TO POUR THE FIRST CONCRETE IN 1995 PUBLICLY BEIJING OFFERS A CONSERVATIVE COST ESTIMATE IN STATIC 1993 DOLLARS OF 115 BILLION ALREADY A SIXFOLD INCREASE FROM THE FIRST THREE GORGES BUDGET PREPARED IN THE MID1980S BUT INTERNAL ESTIMATES PREPARED FOR THE STATE COUNCIL LAST SPRING AND UPDATED TO REFLECT CURRENT DOLLARS INDICATE A LONGTERM BUDGET OF 344 BILLION FACTORING IN LOWBALL PREDICTIONS FOR BOTH INFLATION AND INTEREST RATES A CHINESE BANKER FAMILIAR WITH THE PROJECT ESTIMATES THAT HIGHER INFLATION INTEREST RATES AND HIDDEN COSTS ASSOCIATED WITH CONSTRUCTION COULD PUSH THE TOTAL TO 77 BILLION A FIGURE 13 TIMES LARGER THAN CHINA'S 1994 DEFENSE BUDGET EVEN IF THE TAB ISN'T THAT HIGH SOME CRITICS BELIEVE THAT THE DAM WILL NEVER MAKE ECONOMIC SENSE VIJAY PARAJPYE A PROFESSOR OF ECONOMICS AND DAM EXPERT AT NESS WADIA COLLEGE IN INDIA SAYS HIS OWN REVIEW OF THE CURRENT DESIGN AND FINANCING PLAN SUGGESTS A BENEFITCOST RATIO OF 08 ANYTHING LESS THAN 10 WOULD MEAN CHINA COULD NEVER RECOUP ITS INVESTMENT THROUGH FLOOD CONTROL OR ELECTRICITY BENEFITS MUCH LESS MAKE THE PROJECT A COMMERCIAL CONTRIBUTOR THE US RECENTLY VOICED SKEPTICISM THOUGH THE US CONSULTED WITH CHINA ON THE PROJECT FOR YEARS IT WITHDREW FINANCIAL AND TECHNICAL SUPPORT AFTER CONSTRUCTION BEGAN DAN BEARD COMMISSIONER OF THE BUREAU OF RECLAMATION PLANS A TRIP TO CHINA IN MAY TO EXPLAIN WHY LARGE DAMS ARE TREMENDOUSLY EXPENSIVE THEY ALWAYS COST MORE THAN YOU THOUGHT AND TIE UP HUGE SUMS OF CAPITAL FOR MANY YEARS HE SAYS ADDING THAT THE TREND IS TOWARD SMALLER DAMS AND ENVIRONMENTALLY FRIENDLY FLOOD CONTROL THERE'S NO MORE VISIBLE SYMBOL IN THE WORLD OF WHAT WE ARE TRYING TO MOVE AWAY FROM THAN THE THREE GORGES DAM THE DAM'S BIGGEST ECONOMIC OBSTACLES ARE INTERTWINED WITH SOCIAL CONCERNS AND THE RISK OF UNREST ABOUT 40 OF THE PEOPLE THE RESERVOIR WOULD DISPLACE ARE PEASANTS WHOSE INCOMES AVERAGE A LITTLE ABOVE 100 A YEAR A GROWING NUMBER OF THE 1700 FACTORIES TO BE INUNDATED LOSE MONEY THE GOVERNMENT ACUTELY SENSITIVE TO REPORTS OF UNREST IN THE REGION HAS EFFECTIVELY TOSSED OUT ITS 1993 RESETTLEMENT BUDGET OF 35 BILLION AND OPENED THE FUNDING SPIGOTS SUCH LARGESS BROUGHT CHEN LIANDE AN OFFICIAL OF THE DECREPIT INDUSTRIAL TOWN OF WANXIAN ON BOARD WANXIAN A SPRAWLING HILLSIDE COUNTY IN SICHUAN PROVINCE WILL LOSE MORE LAND AND BUILDINGS THAN ANY OTHER LOCAL OFFICIALS INCREASINGLY VIEW THAT AS A BLESSING MR CHEN SPEAKS RAPIDLY AND ENTHUSIASTICALLY WHEN HE RECITES A LONG LIST OF BENEFITS WANXIAN HAS RECEIVED FROM THE DAM PROJECT GOVERNMENT AID AND INVESTMENT AND LOANS FROM STATE CONTROLLED BANKS FOR BUSINESSES TO RENOVATE AND ABSORB DISPLACED LABORERS THE COUNTY HAS ALSO BEGUN BUILDING A MAJOR HIGHWAY AND A LONG EXPANSION BRIDGE ACROSS THE RESERVOIR AREA FOR WHICH IT EXPECTS THE CENTRAL GOVERNMENT TO PAY MR CHEN EXPECTS THE RESETTLEMENT BILL TO REACH 29 BILLION BY EARLY NEXT CENTURY FARTHER UPSTREAM ANOTHER SICHUAN CITY CHONGQING ALSO HAS AMBITIOUS PLANS THE CITY SEES THE DAM AS A THREAT TO ITS ALLIMPORTANT HARBOR FEARING IT WILL FILL WITH SILT AND BECOME USELESS SO THE CITY'S SUPPORT DIDN'T COME CHEAP ON CHONGQING'S DAMRELATED PROJECT LIST A NEW NORTHSOUTH RAILWAY LINE TELECOMMUNICATIONS FACILITIES AN EXPRESSWAY PORT UPGRADES AND A LARGER AIRPORT TO ACCOMMODATE JUMBO JETS QING CHANGDIAN THE DEPUTY MAYOR SAYS LOCAL RESETTLEMENT COSTS ARE LIKELY TO TOP 115 BILLION BESIDES RESETTLEMENT EXPENSES HIDDEN COSTS IGNORED IN THE CENTRAL GOVERNMENT'S BUDGET ARE MOUNTING THE MURKY BROWN WATERS OF THE YANGTZE CARRY SOME 500 BILLION CUBIC METERS OF SILT AND SEDIMENT EACH YEAR ENOUGH TO TURN THE DAM INTO A GIANT MUD PIE IN A MATTER OF MONTHS NEW STUDIES COMPLETED AFTER WORK ON THE DAM COMMENCED REVEALED THAT MEASURES TO CONTROL SILT WOULD FALL SHORT SAYS LIN BINGNAN THE PROJECT'S LEADING SEDIMENTATION ANALYST ENGINEERS NOW ACKNOWLEDGE THAT THEY WILL HAVE TO LOWER THE WATER LEVEL IN THE DAM'S RESERVOIR FROM MAY THROUGH SEPTEMBER EACH YEAR TO ALLOW MORE SILT TO FLOW THROUGH LESS WATER PRESSURE MEANS LESS ELECTRICITY A REDUCTION MR LIN PUTS AT ABOUT 11 FOR THOSE FIVE MONTHS LESS ELECTRICITY MEANS LESS REVENUE STILL SUCH STEPS WOULDN'T SOLVE THE PROBLEM THREE GORGES OFFICIALS SAY THEY WILL BUILD A SERIES OF OTHER DAMS INCLUDING AT LEAST ONE LARGE MULTIBILLIONDOLLAR ONE ACROSS THE YANGTZE RIVER ITSELF TO DIVERT THE FLOW OF SILT FROM UPSTREAM AREAS SURGING COSTS HAVE MADE IT DIFFICULT FOR CHINA TO RAISE MONEY FOR THE PROJECT BEIJING ONCE COUNTED ON LOWINTEREST LOANS FROM THE WORLD BANK THE BIGGEST INTERNATIONAL SUPPORTER OF CHINESE INFRASTRUCTURE DEVELOPMENT BUT THE BANK HAS REFUSED TO PARTAKE ACCORDING TO MR LU THE THREE GORGES CORP PRESIDENT A REPORT BY THE WORLD BANK WHOSE OFFICIALS DECLINE TO COMMENT SAYS THE PROJECT'S CURRENT DESIGN IS NOT AN ECONOMICALLY VIABLE PROPOSITION CHINA HAS ALSO FAILED TO ATTRACT AID OR LOWINTEREST LOANS FROM CANADA THE US JAPAN OR GERMANY THOUGH SOME CREDITS TO IMPORT DAM EQUIPMENT FROM CANADA AND JAPAN REMAIN POSSIBLE INSTEAD MOST FUNDS MUST COME DIRECTLY FROM GOVERNMENT REVENUE ESPECIALLY STATECONTROLLED ELECTRICITY SALES BEIJING HAS SLAPPED A 2 TAX ON ELECTRICITY USE NATIONWIDE PROCEEDS OF WHICH WILL GO TO DAM CONSTRUCTION THREE GORGES CORP ALSO HAS TAKEN OVER ANOTHER LARGE YANGTZE DAM THE GEZHOUBA AND WILL USE ITS PROFITS TO SUPPORT THE NEW PROJECT THE LINK WITH GOVERNMENT REVENUE MAY WELL EXACERBATE CHINA'S INFLATION NOW RUNNING AT ABOUT 20 A YEAR AND COMPLICATE EFFORTS TO REDUCE THE BUDGET DEFICIT EXPECTED TO SWELL TO 15 BILLION IN 1994 DESPITE RAPID ECONOMIC GROWTH CHINESE OFFICIALS REALIZE THE THREAT IN MARCH DURING A MEETING OF THE NATIONAL LEGISLATURE PREMIER LI PENG SAID THE COUNTRY HAD FALLEN INTO FINANCIAL DIRE STRAITS FOR THAT REASON CHINA IS DOING WHAT IT CAN TO MINIMIZE RELIANCE ON ITS OWN REVENUE IN THE PAST MONTH MR LI PERSONALLY RECEIVED THE HEADS OF MERRILL LYNCH & CO AND MORGAN STANLEY GROUP INC CONSIDERED AMONG THE TOP CONTENDERS TO HELP CHINA FINANCE A PART OF THE DEAL ON HIS BEIJING VISIT JOHN MACK MORGAN STANLEY'S PRESIDENT WAS CHAUFFEURED IN A LIMOUSINE AND ESCORTED BY A POLICE CONVOY TO CUT THROUGH THE CAPITAL'S TRAFFIC A PARTICIPANT AT ONE RECENT MEETING WITH GOVERNMENT OFFICIALS SAYS BANKERS WANTED TO DISCUSS AN ARRAY OF DEALS ISSUING STOCK FOR PROFITABLE CHINESE COMPANIES OVERSEAS OR HELPING ARRANGE FUNDING FOR ROAD ENERGY AND PORT PROJECTS MR LI WANTED TO DISCUSS THE THREE GORGES YOU GET THE IDEA HE'S EAGER MAYBE EVEN A LITTLE DESPERATE THE PARTICIPANT SAID THE IMPLICATION IS HELP US WITH THIS IF YOU WANT TO DO BUSINESS IN CHINA A BANKER WHO PARTICIPATED AT ANOTHER SUCH SESSION CONTRADICTS THAT VIEW SAYING THE INVESTMENT BANKS ARE AT LEAST AS EAGER AS THE CHINESE AFTER HIS MEETING WITH MR LI MR MACK TOLD REPORTERS HE WAS CONFIDENT MORGAN WOULD PLAY A ROLE IN ARRANGING FINANCING FOR THE DAM MERRILL LYNCH HAS SAID THE SAME NEARER THE DAM SITE FEW SEEM TO CARE HOW CHINA GETS THE MONEY THEY ARE BUSY SPENDING IT SICHUAN CHEMICAL FACTORY A SMALLTIME SOAP MAKER IN WANXIAN THAT UNTIL RECENTLY HAD FACED TOUGH TIMES HAS RESETTLED ITS FACTORY FROM ITS GRAY SPARSE HEADQUARTERS IN THE CITY'S ANCIENT COMMERCIAL CENTER ON THE RIVER TO A 23ACRE LANDSCAPED CAMPUS IN THE HILLS A MULTILANE ENTRANCE BISECTED BY AN ELEGANT GARDEN OF TULIPS LEADS TO THE EIGHTSTORY HEADQUARTERS IT IS MOSTLY EMPTY NOW BUT MANAGER HUANG JIAXING EXPLAINS WE'RE EXPECTING TO GROW THE SPENDING SPREE CAME TO ABOUT 37 MILLION HE SENT THE BILL TO THE GOVERNMENT 9404180064 940418 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED SIX NEW LISTINGS WHILE THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ADDED NINE LISTINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED FOUR NEW SECURITIES FOLLOWING ARE THE BIG BOARD LISTINGS INCLUDING FIVE INITIAL PUBLIC OFFERINGS AGREE REALTY CORP FARMINGTON HILLS MICH UNDER ADC A REAL ESTATE INVESTMENT TRUST CENTEX CONSTRUCTION PRODUCTS INC DALLAS CXP A CONSTRUCTION PRODUCTS MANUFACTURER COLE NATIONAL CORP MAYFIELD HEIGHTS OHIO CNJ A SPECIALTY SERVICE RETAILER DEBARTOLO REALTY CORP YOUNGSTOWN OHIO EJD A REAL ESTATE INVESTMENT TRUST MCWHORTER TECHNOLOGIES INC CARPENTERSVILLE ILL MWT A RESIN MANUFACTURER AND A SPINOFF FROM VALSPAR CORP AND MILLS CORP WASHINGTON DC MLS A REAL ESTATE INVESTMENT TRUST THE NASDAQ NATIONAL MARKET ADDED WANDEL & GOLTERMANN TECHNOLOGIES INC RESEARCH TRIANGLE PARK NC WGTI A MAKER OF PRODUCTS FOR LOCAL AND WIDE AREA NETWORKS CERPLEX GROUP INC ANAHEIM CALIF CPLX A REPAIR SERVICE FOR ELECTRONIC EQUIPMENT DIALOGIC CORP PARSIPPANY NJ DLGC A MAKER OF HARDWARE AND SOFTWARE SIGNAL COMPUTING COMPONENTS SOUTHERN MISSOURI BANCORP INC POPLAR BLUFF MO SMBC A SAVING BANK HOLDING COMPANY AND AMERICAN EAGLE OUTFITTERS INC WARRENDALE PA AEOS A SPECIALTY RETAILER OF CASUAL APPAREL AND FOOTWEAR LONG ISLAND BANCORP INC MELVILLE NY LISB A BANKING COMPANY CAMBRIDGE SOUNDWORKS INC NEWTON MASS HIFI A MAKER OF STEREO AND HOME THEATER SPEAKERS NUMAR CORP MALVERN PA NUMR WHICH MAKES MAGNETIC RESONANCE IMAGING LOGGING TOOLS TO EVALUATE OIL AND GAS FORMATIONS AND XCELLENET INC ATLANTA XNET A DEVELOPER AND MARKETER OF CLIENT/SERVER SYSTEM TOOLS THE AMEX BEGAN TRADING LEHMAN BROTHERS HOLDINGS INC GLOBAL TELECOMMUNICATIONS STOCK UPSIDE NOTE SECURITIES SUNS UNDER SXT THE SECURITIES WILL PAY INTEREST AT A RATE DETERMINED BY A PERCENTAGE CHANGE IN THE PRICE OF SECURITIES OF A GROUP OF 24 TELECOMMUNICATIONS COMPANIES IN 17 COUNTRIES IT ALSO LISTED THE CLASS A COMMON SHARES OF CITIZENS INC AUSTIN TEXAS AN INSURANCE HOLDING COMPANY CIAA PREVIOUSLY TRADED OVER THE COUNTER ALSO LISTED INTERNATIONAL LOTTERY INC CINCINNATI ILI A MAKER OF INSTANT LOTTERY TICKET VENDING MACHINES AND AZCO MINING INC SOLOMON ARIZ AZC A COPPER MINING COMPANY THAT TRADED ON THE TORONTO STOCK EXCHANGE AS WELL THE CHICAGO BOARD OPTIONS EXCHANGE SAID IT WILL BEGIN TRADING OPTIONS TODAY ON SAPIENS INTERNATIONAL CORP NV THE AMEX AND THE CBOE SAID THEY WILL BEGIN TRADING OPTIONS APRIL 20 ON RESOUND CORP 9404180062 940418 INTERNATIONAL BRAZIL MAY COPY NASDAQ SAO PAULO BRAZIL THE SECURITIES COMMISSION PROPOSED THAT BRAZIL CREATE A NEW INVESTMENTTRADING VEHICLE PATTERNED AFTER THE NASDAQ SYSTEM IN THE US BRAZILIANS WILL BE VISITING NASDAQ IN NEW YORK NEXT WEEK TO STUDY HOW IT WORKS SAID CLAVER PAULISTANO THE COMMISSION'S CHIEF SPOKESMAN IT WILL BE THE MODEL ALTHOUGH MR PAULISTANO SAID NO CRITERIA HAVE BEEN ESTABLISHED FOR THE NEW MARKET INVESTMENT ANALYSTS SAY THAT AN OVERTHECOUNTER MECHANISM IS NEEDED TO STREAMLINE BRAZIL'S MAJOR STOCK EXCHANGES WITH 570 LISTINGS ON THE SAO PAULO STOCK EXCHANGE BRAZIL'S LARGEST MANY SMALLER COMPANIES MIGHT BE BETTER SUITED FOR A DIFFERENT TYPE OF EXCHANGE A HANDFUL OF MAJOR COMPANIES ACCOUNT FOR THE BULK OF VOLUME ON THE SAO PAULO EXCHANGE 9404180061 940418 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT BERRY PLASTICS CORP 100 MILLION OF UNITS CONSISTING OF SENIOR SUBORDINATED NOTES AND WARRANTS ACCORDING TO MCM CORPORATEWATCH THE NOTES DUE APRIL 15 2004 WERE PRICED AT PAR TO YIELD 1225 THE WARRANTS ARE FOR FOR 5 OF THE EQUITY IN BPC HOLDING CORP THE PARENT COMPANY THE NOTES NONCALLABLE FOR THREE YEARS ARE RATED CAA BY MOODY'S INVESTORS SERVICE INC AND SINGLEBMINUS BY STANDARD & POOR'S RATINGS GROUP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP DIAL CALL COMMUNICATIONS INC 300 MILLION PROCEEDS OF UNITS CONSISTING OF SENIOR REDEEMABLE DISCOUNT NOTES AND WARRANTS ACCORDING TO MCM CORPORATEWATCH THE NOTES WERE PRICED AS 55366S TO YIELD 1225 AND WILL PAY NO INTEREST FOR FIVE YEARS THE NOTES ARE NONALLABLE FOR FIVE YEARS THE WARRANTS CAN BUY 12 MILLION COMMON SHARES OF PARENT COMPANY DIAL PAGE INC THE WARRANTS ARE EXERCISABLE AT 3465 A SHARE RATED CAA BY MOODY'S AND TRIPLEC BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF FLOATINGRATE NOTES DUE APRIL 25 1995 PRICED THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE FLOATS AND PAYS QUARTERLY AT 55 BASIS POINTS ABOVE THE THREEMONTH TREASURY FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF DEBENTURES DUE APRIL 25 1996 PRICED AT PAR TO YIELD 572 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR ONE YEAR AND WAS PRICED AT A SPREAD OF 21 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF MEDIUMTERM NOTES DUE APRIL 23 1999 PRICED AT PAR TO YIELD 681 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 30 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO PNC BANK NA 1 BILLION OF FLOATINGRATE BANK NOTES PRICED INITIALLY AT PAR THROUGH LEAD MANAGER GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE NOTES DUE APRIL 21 1995 WILL FLOAT WEEKLY AND PAY QUARTERLY AT 10 BASIS POINTS ABOVE THREEMONTH TREASURYS THE NOTES ARE RATED DOUBLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P PNC BANK IS A UNIT OF PNC BANK CORP TNT TRANSPORT EUROPE PLC AND TNT USA INC 100 MILLION OF SENIOR NOTES DUE APRIL 15 2004 PRICED AT PAR TO YIELD 115 THE ISSUE IS NONCALLABLE FOR FIVE YEARS RATED SINGLEB1 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO GAME FINANCIAL CORP INITIAL PUBLIC OFFERING OF 977500 COMMON SHARES PRICED AT 5 EACH THROUGH EQUITY SECURITIES TRADING CO ACCORDING TO THE COMPANY FEDERAL HOME LOAN MORTGAGE CORP 350 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MORGAN STANLEY & CO THE OFFERING SERIES 1729 IS BACKED BY THE AGENCY'S 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 81 AND WEIGHTED AVERAGE MATURITY OF 350 MONTHS COUNCIL OF EUROPE RESETTLEMENT FUND SUPRANATIONAL 300 MILLION EUROPEAN CURRENCY UNITS OF 675 EUROBONDS DUE MAY 11 2004 AT ISSUE PRICE 10003 VIA SWISS BANK CORP REOFFERED AT 98355 TO YIELD 6984 A SPREAD OF 4 BASIS POINTS ABOVE COMPARABLE ECU FRENCH TREASURY FEES TWO ELECTRICITE DE FRANCE FRANCE 300 BILLION ITALIAN LIRE OF 8 EUROBONDS DUE MAY 12 1997 AT ISSUE PRICE 1013 VIA JP MORGAN SIM BONDS YIELD 803 AFTER FEES OF 1375 GENERAL ELECTRIC CAPITAL CORP US PARENT 150 BILLION ITALIAN LIRE OF 925 EUROBONDS DUE MAY 18 2004 AT ISSUE PRICE 10115 VIA BANCA NAZIONALE DEL LAVORO AND CREDITO ITALIANO BONDS YIELD 938 AFTER DEDUCTING FEES OF TWO CALLABLE MAY 1996 AT PAR AND ANNUALLY THEREAFTER 9404180060 940418 KIDDER DISCLOSES SCAM IN BONDS FIRES TOP TRADER IT SETS 350 MILLION CHARGE SAYS SCHEME INVOLVED GOVERNMENTSTRIP DEALS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK KIDDER PEABODY GROUP INC SAID IT FIRED ITS HEAD GOVERNMENTBOND TRADER AFTER UNCOVERING A PHANTOM TRADING SCHEME THAT WILL RESULT IN A 350 MILLION PRETAX CHARGE AGAINST FIRSTQUARTER PROFIT THE GENERAL ELECTRIC CO UNIT SAID THE SUDDEN DISMISSAL OF JOSEPH JETT A 36YEAROLD MANAGING DIRECTOR WHO HAS RUN THE GOVERNMENTTRADING DESK SINCE 1991 AND MADE 9 MILLION IN PAY LAST YEAR STEMMED FROM A SCHEME IN THE GOVERNMENTSTRIPS AREA THAT CREATED PHANTOM TRADES AND PROFITS AND THAT LASTED FOR ABOUT A YEAR IN A CONTINUING INVESTIGATION OF THE MATTER WHICH KIDDER SAYS IT UNCOVERED LATE LAST WEEK THE FIRM SUSPENDED SIX OTHER BOND TRADERS AND TRADEPROCESSING EMPLOYEES AND HAS NOTIFIED THE SECURITIES AND EXCHANGE COMMISSION AND THE NEW YORK STOCK EXCHANGE THE CHARGE 210 MILLION AFTER TAXES WILL RESULT IN A FIRSTQUARTER LOSS FOR KIDDER OF AS MUCH AS 140 MILLION PEOPLE FAMILIAR WITH THE MATTER SAY THE CHARGE DERAILS A STRING OF RECORD PROFITS FOR THE 128YEAROLD INVESTMENT BANK INDEED BEFORE THE TRADE SCHEME KIDDER WAS ON TRACK TO POST RECORD QUARTERLY EARNINGS OF MORE THAN 200 MILLION BEFORE BONUSES AND TAXES THE PEOPLE SAY KIDDER WOULDN'T ELABORATE ON THE TRADING SCHEME WHICH INVOLVED GOVERNMENT STRIPS THAT IS INSTRUMENTS THAT REPRESENTED THE BONDS' INTEREST PAYMENTS SUCH STRIPS ARE WIDELY TRADED PEOPLE FAMILIAR WITH THE MATTER SAY MR JETT ALLEGEDLY ENTERED INTO FORWARD CONTRACTS THAT ESSENTIALLY INVOLVED THE EXCHANGE AT A LATER DATE OF STRIPS FOR BONDS INSTEAD OF SETTLING THESE FORWARD CONTRACTS WHEN THEY CAME DUE MR JETT ALLEGEDLY CONTINUED TO ROLL THEM FORWARD TAKING FICTITIOUS PROFITS THE PEOPLE SAID THE PHONY TRADING SCHEME IS THE SECOND BONDRELATED BLOW TO HIT KIDDER THIS YEAR AS REPORTED KIDDER ALSO HAS HAD RECENT MORTGAGEBACKED SECURITIES LOSSES OF ABOUT 25 MILLION STEMMING FROM THE LIQUIDATION OF SEVERAL HEDGE FUNDS RUN BY ASKIN CAPITAL MANAGEMENT LP KIDDER ALONG WITH OTHER WALL STREET FIRMS FINANCED ASKIN'S MORTGAGEDERIVATIVES TRADES BEFORE DRASTIC DROPS IN THE MORTGAGE MARKET FORCED ASKIN TO FILE FOR BANKRUPTCYLAW PROTECTION THE TRADING SCHEME RAISES QUESTIONS ABOUT THE RISKCONTROL SYSTEMS AT KIDDER AND IS A PARTICULARLY BIG BLOW TO THE FIRM BECAUSE IT INVOLVES ITS HIGHLY PROFITABLE BONDTRADING GROUP THE MIXUP REPRESENTS THE BIGGEST GOVERNMENTBOND TUMULT ON WALL STREET SINCE THE 1991 TREASURYAUCTION SCANDAL AT SALOMON INC AND THE PROBLEM IS SURE TO HEIGHTEN THE ALREADY STRONG CONTROL GENERAL ELECTRIC HAS DEMANDED IN OVERSEEING KIDDER ANALYSTS SAY THE TRADING TANGLE CLEARLY IS AN EMBARRASSMENT FOR PARENT GE THE STAMFORD CONNBASED CONGLOMERATE ONLY RECENTLY HAD BEGUN TO SEE SOME RETURN ON ITS INVESTMENT IN KIDDER WHICH IT BOUGHT IN 1986 FOR 602 MILLION SINCE THE ACQUISITION GE HAS PUMPED NEARLY 1 BILLION INTO ITS SECURITIES UNIT KIDDER ONLY STARTED MAKING SOLID PROFIT IN 1991 AND LAST YEAR EARNED RECORD NET INCOME OF 439 MILLION THE BASIC UNDERLYING PERFORMANCE AND EARNINGS POWER OF THE ORGANIZATION IS STILL VERY STRONG MICHAEL A CARPENTER KIDDER'S CHIEF EXECUTIVE SAID IN AN INTERVIEW MR CARPENTER STRESSED THAT THE TRADES DIDN'T INVOLVE THE MORTGAGE OR DERIVATIVES MARKETS AND INVOLVED NO CUSTOMERS GE WHICH HAS TRIED TO SELL KIDDER IN THE PAST REITERATED ITS STRONG SUPPORT FOR THE UNIT MR CARPENTER SAID BUT GE CHAIRMAN JACK WELCH DIDN'T MINCE WORDS IN A RELEASE ISSUED LAST NIGHT MR WELCH ONE OF THE MOST RESPECTED MANAGERS IN CORPORATE AMERICA WHO PRIDES HIMSELF ON GE'S AVOIDANCE OF SURPRISES SAID IN A STATEMENT THAT THE SCHEME VIOLATES EVERYTHING WE BELIEVE IN AND STAND FOR HE ADDED TO BREAK A MORE THAN DECADE STRING OF NO SURPRISES' HAS ALL OF US DAMN MAD BOTH AT THE VIOLATION AND ITS IMPACT GE WHICH WILL REPORT FIRSTQUARTER RESULTS THIS WEEK SAID IT WILL POST NET INCOME OF 109 BILLION AFTER TAKING WHAT IT CALLED A ONETIME NONCASH CHARGE WE ARE COMMITTED TO DELIVERING RECORD EARNINGS FOR THE YEAR 1994 MR WELCH SAID KIDDER SAID IT RETAINED GARY LYNCH A FORMER SEC ENFORCEMENT CHIEF NOW AT DAVIS POLK & WARDWELL TO LEAD A COMPREHENSIVE INVESTIGATION INTO WHAT WENT WRONG AND TO RECOMMEND STEPS TO PREVENT A RECURRENCE TO WEIGH IN FROM THE PARENT JAMES R BUNT GE CAPITAL CORP TREASURER WILL ALSO WORK ON THE INVESTIGATION KIDDER SAID MR JETT WHO HAS A NONPUBLISHED NUMBER IN NEW YORK COULDN'T BE REACHED FOR COMMENT BUT KIDDER BECAME SUSPICIOUS WHEN MR JETT INCREASED THE SIZE AND FREQUENCY OF THE GOVERNMENTSTRIPS TRADES THE PEOPLE SAID OVER THE PAST YEAR MR JETT TRADED MANY THOUSANDS OF SUCH STRIPS SAID A PERSON FAMILIAR WITH THE MATTER ABOUT TWO WEEKS AGO THE PEOPLE SAID KIDDER TOLD MR JETT TO PARE HIS GOVERNMENTSTRIP TRADING POSITIONS SENIOR KIDDER EXECUTIVES CONFRONTED MR JETT LATE LAST WEEK ON THE MATTER THE PEOPLE SAID MR JETT DENIED THAT HE DID ANYTHING WRONG AND TOLD THE EXECUTIVES HE WASN'T TRYING TO DISTORT PROFITS IN ANY WAY ONE OF THE PEOPLE SAID INSTEAD THE PERSON SAID MR JETT TRIED TO BLAME KIDDER FOR THE PROBLEM CONTENDING THAT THE MIXUP WAS TRIGGERED BY THE FORCED REDUCTIONS OF HIS TRADING POSITIONS MR JETT WAS A RISING STAR AT KIDDER A FAVORITE OF EDWARD CERULLO KIDDER'S FIXEDINCOME CHIEF MR JETT PREACHED PROFIT AT ALL COSTS ASSOCIATES SAY THIS GUY WAS HELD UP TO BE THE HUMAN PIRANHA' SAID A KIDDER ASSOCIATE THE ARTICULATE MR JETT SPOKE AT AN ANNUAL KIDDER RETREAT IN BOCA RATON FLA IN JANUARY AMONG OTHER THINGS MR JETT TALKED ABOUT HOW IMPORTANT IT WAS TO MAKE MONEY THOSE WHO HEARD THE TALK SAY IT WAS ONE OF THOSE NEW YORK KNICKS COACH PAT RILEY TALKS ABOUT TAKING NO PRISONERS ACCORDING TO ONE KIDDER ATTENDEE THE PERSISTENT TRADING PLOY THAT KIDDER ALLEGES RAISES QUESTIONS ABOUT WHY KIDDER DIDN'T DISCOVER IT MORE QUICKLY SOME TRADERS SUGGEST THAT WALL STREET FIRMS TEND TO IGNORE POTENTIAL PROBLEMS INVOLVING THEIR BIGGEST PRODUCERS AND THE PROBLEM COULD HAVE FESTERED BECAUSE KIDDER'S BOND GROUP OPERATES AS A MAJOR FIEFDOM TRADERS SAY BUT KIDDER DENIES THIS MR JETT KEPT WRITING THESE STRIPS FARTHER OUT AND FOR LARGER AMOUNTS AND KEPT FOOLING THE SYSTEM THE PERSON FAMILIAR WITH THE MATTER SAID MR JETT WAS DISMISSED OVER THE WEEKEND IN A STATEMENT KIDDER'S MR CARPENTER CALLED THE ALLEGED SCHEME AN ISOLATED INCIDENT THAT HAPPENED DESPITE THE DILIGENT EFFORTS TO MAKE KIDDER'S COMPLIANCE CONTROLS AND RISKMANAGEMENT SYSTEM STATE OF THE ART MR CARPENTER ADDED THAT THE PROBLEM ONLY STRENGTHENS OUR RESOLVE TO DO EVEN MORE TO PREVENT A RECURRENCE KIDDER EXECUTIVES SAY THEY BELIEVE THE PROBLEM WON'T SPREAD TO OTHER AREAS OF THE FIRM THE EXECUTIVES SAY THE MIXUP WAS DISCOVERED LAST WEEK AND QUANTIFIED OVER THE WEEKEND IN AN UNUSUAL STEP KIDDER PUBLICLY DISCLOSED MR JETT'S 1993 PAY OF 9 MILLION CALLING THE COMPENSATION PACKAGE ONE OF THE HIGHEST AT THE FIRM KIDDER ALSO STRONGLY SUGGESTED THAT IT WOULD TAKE LEGAL ACTION AGAINST MR JETT MOST LIKELY IN ARBITRATION MR CARPENTER SAID IN THE INTERVIEW THAT THE FIRM WON'T TAKE BACK THE BONUSES KIDDER ALLOCATED TO TRADERS AND INVESTMENT BANKERS IN THE FIRST QUARTER DESPITE THE FICTITIOUS PROFITS AND STEEP CHARGE WE CAN'T PENALIZE ALL THE EMPLOYEES OF THE FIRM FOR ONE INDIVIDUAL THAT GOT OFF THE RESERVATION MR CARPENTER SAID 9404180059 940418 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 1/4 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 9/16 HIGH 3 1/4 LOW 3 3/8 NEAR CLOSING BID 3 7/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 1/4 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 360 30 TO 44 DAYS 363 45 TO 59 DAYS 375 60 TO 89 DAYS 387 90 TO 119 DAYS 4 120 TO 149 DAYS 408 150 TO 179 DAYS 420 180 TO 239 DAYS 435 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 372 30 DAYS 385 60 DAYS 399 90 DAYS CERTIFICATES OF DEPOSIT 311 ONE MONTH 328 TWO MONTHS 341 THREE MONTHS 378 SIX MONTHS 429 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 368 ONE MONTH 392 THREE MONTHS 425 SIX MONTHS BANKERS ACCEPTANCES 364 30 DAYS 372 60 DAYS 385 90 DAYS 393 120 DAYS 410 150 DAYS 415 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/4 3 5/8 ONE MONTH 3 15/16 3 13/16 TWO MONTHS 4 1/16 3 15/16 THREE MONTHS 4 3/16 4 1/16 FOUR MONTHS 4 5/16 4 3/16 FIVE MONTHS 4 7/16 4 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/4 ONE MONTH 4 1/16 THREE MONTHS 4 7/16 SIX MONTHS 5 1/16 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 11 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 363 13 WEEKS 403 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 825 60 DAYS 832 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 827 60 DAYS 836 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 615 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 294 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9404180058 940418 INTERNATIONAL JAPAN'S INDUSTRIAL OUTPUT TOKYO JAPAN'S TRADE MINISTRY ON FRIDAY REVISED INDUSTRIALOUTPUT DATA FOR FEBRUARY TO SHOW A WORSE PERFORMANCE IN PRODUCTION AND SHIPMENTS THAN IT HAD REPORTED INITIALLY MORE THAN TWO WEEKS AGO AFTER ADJUSTMENT FOR SEASONAL FACTORS PRODUCTION FELL 01 FROM JANUARY AND SHIPMENTS ROSE 11 THE PRELIMINARY REPORT BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY HAD SHOWED PRODUCTION UP 02 AND SHIPMENTS UP 12 FRIDAY'S REPORT ALSO SHOWED THE CAPACITYUTILIZATION RATE FOR FEBRUARY AFTER ADJUSTMENT FOR SEASONAL FACTORS ROSE 15 FROM JANUARY 9404180057 940418 BUSINESS BRIEF ORACLE SYSTEMS CORP SOFTWARE MAKER TO INTRODUCE NEW APPLICATIONS PROGRAMS ORACLE CORP PLANS TO INTRODUCE TODAY SOFTWARE TO MANAGE MANUFACTURING FINANCIAL AND HUMAN RESOURCES DATA SOFTWARE OF THIS TYPE SOMETIMES CALLED APPLICATIONS SOFTWARE ACCOUNTS FOR LESS THAN 10 OF ORACLE'S BUSINESS SAID PRESIDENT AND CHIEF EXECUTIVE OFFICER LAWRENCE ELLISON BUT IT HAS THE POTENTIAL TO BECOME THE FASTESTGROWING SEGMENT OF OUR BUSINESS HE EXPECTS SUCH PRODUCTS WILL ACCOUNT FOR ABOUT 35 OF THE COMPANY'S REVENUE BY 1997 THE BULK OF ORACLE'S SALES COME FROM DATABASE SOFTWARE ORACLE REDWOOD CITY CALIF SAID ITS NEW PRODUCTS WILL BE ABLE TO RETRIEVE INFORMATION IN MORE THAN 20 LANGUAGES AND CURRENCIES IN ADDITION ORACLE SAID ABOUT 40 OTHER COMPANIES PLAN TO MAKE PRODUCTS THAT WILL WORK WITH THE SOFTWARE 9404180056 940406 WELFARE REFORM IS LIKELY TO LEAVE THIS MONSTER INTACT BY CAROLYN L WEAVER WHILE PRESIDENT CLINTON'S PLAN FOR ENDING WELFARE AS WE KNOW IT IS LONG ON RHETORIC AND SHORT ON DETAIL THERE IS EVERY INDICATION THAT IT WILL NOT TACKLE THE FEDERAL GOVERNMENT'S LARGEST CASH WELFARE PROGRAM SUPPLEMENTAL SECURITY INCOME WHEN SSI WAS CREATED IN 1974 FEDERALIZING THE OLDAGE ASSISTANCE AID TO THE DISABLED AND AID TO THE BLIND PROGRAMS AROUND THE COUNTRY MOST SSI RECIPIENTS WERE ELDERLY PEOPLE WHO WERE INELIGIBLE FOR SOCIAL SECURITY OR WHOSE PENSIONS LEFT THEM IN POVERTY AS THE ECONOMIC WELLBEING OF THE ELDERLY HAS IMPROVED HOWEVER GENERALLY REDUCING THE NUMBER OF ELDERLY PEOPLE ON THE SSI ROLLS THE NUMBER OF DISABLED RECIPIENTS HAS SOARED DOUBLING BETWEEN 1974 AND 1990 AND INCREASING BY OVER ONE MILLION IN THE PAST THREE YEARS ALONE TODAY THREE OUT OF FOUR SSI RECIPIENTS ARE PEOPLE WITH DISABILITIES AND EXPANDED ELIGIBILITY GUIDELINES HAVE SENT THE NUMBERS SOARING SSI IS MORE COSTLY AND GROWING MUCH MORE RAPIDLY THAN AID TO FAMILIES WITH DEPENDENT CHILDREN THE FOCUS OF THE WELFARE REFORM DEBATE SINCE SSI IS A TICKET TO FOOD STAMPS AND TO GOVERNMENTFUNDED HEALTH CARE MOREOVER THE FISCAL CONSEQUENCES OF ITS GROWTH ARE FELT THROUGHOUT THE US WELFARE AND HEALTH CARE SYSTEMS IN 1993 AN ESTIMATED SIX MILLION PEOPLE RECEIVED SSI UP NEARLY ONEHALF SINCE 1980 AND ONEQUARTER SINCE 1990 FEDERAL SSI SPENDING STOOD AT 23 BILLION DOUBLE ITS LEVEL IN REAL DOLLARS IN 1980 FEDERAL SPENDING ON AFDC BY CONTRAST WAS 16 BILLION UP 23 IN REAL TERMS SINCE 1980 OVER THE NEXT THREE YEARS THE CLINTON BUDGET PROJECTS THAT THE SSI BENEFIT ROLLS WILL GROW BY A WHOPPING 7 TO 8 ANNUALLY OR BY 15 MILLION PEOPLE OVER THE PERIOD COMPARED WITH 2 ANNUAL GROWTH FOR AFDC TAKING INTO ACCOUNT STATE SPENDING WHICH IN THE CASE OF AFDC IS SUBSTANTIAL AFDC COSTS MORE THAN SSI 29 BILLION AS COMPARED WITH 26 BILLION AS IT HAS THROUGHOUT HISTORY BUT THIS IS NOT EXPECTED TO LAST THE CLINTON BUDGET PROJECTS THAT BY THE END OF THE DECADE THE COST OF SSI WILL SURPASS THE COST OF AFDC AS WELL AS FOOD STAMPS SUBSIDIZED HOUSING THE GREATLY EXPANDED EARNED INCOME TAX CREDIT AND ALL OTHER MAJOR PUBLIC ASSISTANCE PROGRAMS EXCEPT MEDICAID HOW LIKELY IS IT THAT SSI WILL BE DRAWN INTO THE WELFARE REFORM DEBATE TRADITIONALLY SSI HAS ENJOYED UNUSUAL SUPPORT ON CAPITOL HILL AND A REMARKABLE DEGREE OF INSULARITY AT BUDGET TIME IN CONTRAST TO AFDC SSI PROVIDES A NATIONWIDE MINIMUM INCOME GUARANTEE 5352 ANNUALLY FOR INDIVIDUALS AND 8028 FOR COUPLES THAT IS COSTOFLIVING ADJUSTED ANNUALLY AND FINANCED ENTIRELY BY THE FEDERAL GOVERNMENT ANY SERIOUS DISCUSSION OF SSI REFORM OR SOCIAL SECURITY REFORM FOR THAT MATTER ALMOST INEVITABLY BRINGS FORTH PROPOSALS FOR EXPANDING ELIGIBILITY AND INCREASING PAYMENT LEVELS THE RECOMMENDATIONS OF A 1992 STUDY PANEL HAD A FIVEYEAR PRICE TAG OF 100 BILLION WHAT DO WE KNOW ABOUT SSIDISABILITY RECIPIENTS THE TYPICAL RECIPIENT IS IN HIS OR HER 30S HAS A HIGHSCHOOL EDUCATION OR LESS AND IN CONTRAST TO THE FAMILIAR IMAGE OF SOMEONE WHO IS BLIND OR IN A WHEELCHAIR WAS GRANTED BENEFITS BASED ON A MENTAL DISORDER FULLY ONETHIRD OF ADULTS ON SSI DISABILITY HAVE MENTAL ILLNESSES AND ANOTHER ONEFOURTH HAVE MENTAL RETARDATION YOUNG PEOPLE WITH MENTAL DISORDERS ARE THE FASTESTGROWING SEGMENT OF THE ADULT SSI POPULATION THANKS TO A 1990 COURT ORDER THAT LOOSENED ELIGIBILITY FOR CHILDREN YOUNGSTERS WITH DISABILITIES ARE THE FASTESTGROWING SEGMENT OF THE OVERALL SSI POPULATION STRETCHING SSI IN WAYS NEVER CONTEMPLATED IN 1974 225000 CHILDREN WITH DISABILITIES MAINLY MENTAL DISORDERS INCLUDING THE MUCHDEBATED ATTENTION DEFICIT DISORDER AND MENTAL RETARDATION WERE ADDED TO THE ROLLS LAST YEAR TRIPLE THE NUMBER IN 1989 THE TOTAL NUMBER OF CHILDREN ON THE ROLLS NOW APPROACHES ONE MILLION AS SOME ON CAPITOL HILL AND IN THE PRESS HAVE NOTED EVEN ALCOHOLICS AND DRUG ADDICTS ARE FINDING THEIR WAY ONTO SSI IN GROWING NUMBERS ACCORDING TO THE GENERAL ACCOUNTING OFFICE THE NUMBER OF SSI ALCOHOLICS AND DRUG ADDICTS WITH DISABLING COMPLICATIONS SUCH AS CHRONIC DEPRESSION OR ORGAN DAMAGE TRIPLED BETWEEN 1990 AND MID1993 RISING TO 69000 FROM 23000 WHILE SSI DOES NOT PRESENT THE PROBLEMS IN THE FOREFRONT OF THE WELFARE REFORM DEBATE TEEN PREGNANCY OUTOFWEDLOCK BIRTHS AND THE CYCLE OF DEPENDENCY IT NEVERTHELESS PRESENTS PROBLEMS THAT DEMAND PUBLIC ATTENTION WHILE FEW WOULD DENY ASSISTANCE TO PEOPLE WITH DISABILITIES THAT IS WELLTARGETED AND DESIGNED TO HELP THOSE WHO CAN WORK DO SO SSI FALLS SHORT OF THESE AIMS FOR ADULTS AT THE POINT OF ENTRY TO THE PROGRAM SSI CREATES STRONG DISINCENTIVES TO WORK DISINCENTIVES THAT ARE NO LESS POTENT THAN IN AFDC ONCE ON THE SSI ROLLS PEOPLE RECEIVE CASH ASSISTANCE BUT NO REHABILITATION JOB TRAINING OR EMPLOYMENT SERVICES SERVICES THAT ARE NO LESS CRITICAL TO PROMOTING WORK AMONG PEOPLE WITH DISABILITIES THAN AMONG MOTHERS ON AFDC AND IN PROVIDING CASH SUPPORT WITH BASICALLY NO STRINGS ATTACHED SSI TENDS TO PERPETUATE THE VERY CONDITIONS ALCOHOLISM DRUG ADDICTION OR CERTAIN FORMS OF MENTAL ILLNESS FOR EXAMPLE THAT PRECLUDE WORK AND PROMOTE DEPENDENCY FURTHER WHETHER IN ASSESSING AN ADULT'S ABILITY TO ENGAGE IN SUBSTANTIAL GAINFUL ACTIVITY OR A CHILD'S ABILITY TO ENGAGE IN AGEAPPROPRIATE ACTIVITIES OF DAILY LIVING THE GOVERNMENT'S DECISIONS ABOUT WHO IS DISABLED AND TO WHAT EXTENT ARE COSTLY COMPLEX INHERENTLY SUBJECTIVE AND FREQUENTLY DISPUTED FOR THESE REASONS AND MORE CONGRESS WOULD DO WELL TO PUT SSI ON THE TABLE WHEN IT TAKES UP WELFARE REFORM LATER THIS SPRING SSI IS A CRITICAL IF NEGLECTED ASPECT OF THE WELFARE CRISIS IN AMERICA MS WEAVER IS RESIDENT SCHOLAR AND DIRECTOR SOCIAL SECURITY AND PENSION STUDIES OF THE AMERICAN ENTERPRISE INSTITUTE SEE RELATED LETTER LETTERS TO THE EDITOR WELFARE MONSTER WSJ APRIL 18 1994 9404060168 YY94 MM04 9404180055 940418 MANAGER'S JOURNAL CUSTOMERS DON'T WANT CHOICE BY JOE PINE IF YOU ARE RESPONDING TO INCREASED MARKET TURBULENCE WITH MORE OPTIONS AND MORE CUSTOMIZATION THAN YOUR CUSTOMERS HAVE EVER HAD BEFORE IT IS CRUCIAL TO REMEMBER THE SIMPLE RULE GE FANUC DISCOVERED THE HARD WAY CUSTOMERS DON'T WANT MORE CHOICES THEY JUST WANT EXACTLY WHAT THEY WANT PROFITABLE PRODUCTLINE EXPANSION REQUIRES THAT YOU NOT OVERLOAD YOUR CUSTOMERS WITH TOO MUCH INFORMATION AND TOO MANY CHOICES FORCING THEM TO SPEND TOO MUCH TIME FIGURING OUT IF YOU HAVE WHAT THEY NEED OVER THE PAST FEW YEARS GE FANUC HAS VASTLY EXPANDED ITS PRODUCT LINE WHILE THE CHARLOTTESVILLE VABASED COMPANY WAS THE INDUSTRY LEADER IN COMPUTER NUMERICALLY CONTROLLED CNC MACHINE TOOLS ITS EXPANSION STRATEGY EXPOSED ITS CUSTOMERS TO A GREAT DEAL OF COMPLEXITY WITH TENS OF THOUSANDS OF PART NUMBERS TO CHOOSE FROM CUSTOMERS HAD TO PORE OVER SEVERAL FOURINCHTHICK BINDERS JUST TO CONFIGURE A PRODUCT IN SPITE OF OUR PRODUCT LEADERSHIP ORDERING FROM US JUST BECAME TOO DIFFICULT AND TIMECONSUMING PARTICULARLY FOR OUR SMALLER CUSTOMERS REMEMBERS GE FANUC MANAGER GARY HENRY IN RESPONSE THE COMPANY CREATED THE CNC EXPRESS INITIATIVE UNDER MR HENRY'S DIRECTION FIRST IT FOUND THAT MORE THAN 90 OF THE ORDERS COULD BE MET WITH ONLY 300 PART NUMBERS THEN IT PUT TOGETHER PRODUCT PACKAGES AND RELATED PROCESSES THAT GREATLY SIMPLIFIED ITS QUOTING CONFIGURING AND ORDER PROCESSING TODAY DELIVERY TIME FOR THE PACKAGED PRODUCTS HAS BEEN SLASHED TO FOUR WEEKS FROM 16 BALLPARK QUOTES TO A FEW MINUTES FROM OVER AN HOUR AND FULL CONFIGURATION AND ORDER TIME TO 10 MINUTES FROM MOST OF A DAY PRODUCTLINE EXPANSION HAS CONTINUED UNABATED BUT HOW CUSTOMIZATION OPTIONS ARE PRESENTED HAS BEEN GREATLY SIMPLIFIED MUSICWRITER OF LOS GATOS CALIF RESOLVED ITS PROBLEM IN THIS AREA BY DIGITIZING MUSIC NOTATIONS AND THEREBY EMBEDDING SONGS INTO AN ELECTRONIC TOUCHSCREEN KIOSK SO RATHER THAN HAVING TO BROWSE THROUGH HUNDREDS OF DIFFERENT CHOICES BY HAND SEVERAL THOUSAND IN LARGER STORES CUSTOMERS SIMPLY WALK UP TO THE KIOSK AND START TYPING IN THE TITLE OR COMPOSER THE SYSTEM AUTOMATICALLY PRESENTS AND NARROWS THEIR CHOICES AS THEY TYPE UNTIL EXACTLY THE RIGHT PIECE IS FOUND IT CAN THEN PLAY BACK AND DISPLAY THE AVAILABLE VERSIONS AND IMMEDIATELY PRINT EACH CUSTOMER'S EXACT CHOICE OF COURSE NOT EVERY PRODUCT CAN BE DIGITIZED BUT THE INFORMATION ABOUT EVERY PRODUCT CAN BE WINDOW MANUFACTURER ANDERSEN CORP OF BAYPORT MINN HAS SUCCESSFULLY CAPITALIZED ON THIS POINT WHILE TREBLING ITS REVENUE OVER THE PAST DECADE TO MORE THAN 1 BILLION ANDERSEN GREATLY INCREASED THE NUMBER OF MADETOORDER PRODUCTS IT OFFERS AS A RESULT ITS CATALOGS BECAME LARGER ITS PRICE QUOTES TOOK LONGER AND THE NUMBER OF ORDERING MISTAKES BECAME GREATER IN RESPONSE ANDERSEN DEVELOPED ITS OWN MULTIMEDIA KIOSK WHICH IT DUBBED THE WINDOW OF KNOWLEDGE CUSTOMERS CAN NOW COLLABORATE WITH SOFTWARETRAINED SALESPEOPLE IN DESIGNING THEIR OWN WINDOWS ACCORDING TO ANDERSEN EXECUTIVE MIKE TREMBLAY THE REAL BEAUTY OF IT IS HOW THE SYSTEM AUTOMATICALLY GENERATES QUOTES AND MANUFACTURING SPECIFICATIONS DIRECTLY FROM THE CUSTOMER'S DESIRES THOSE RETAILERS THAT HAVE BECOME PROFICIENT WITH THE SYSTEM HAVE SEEN SALES GO UP AN AVERAGE OF 20 WHILE ORDERING MISTAKES HAVE PLUMMETED LIKE ANDERSEN TRILOGY DEVELOPMENT GROUP A SOFTWARE COMPANY BASED IN AUSTIN TEXAS IS ALSO CREATING TOOLS THAT MAKE IT EASY FOR CUSTOMERS OF CLIENT COMPANIES TO DECIDE WHAT'S RIGHT FOR THEM TRILOGY'S SALESBUILDER IS BASED ON OBJECTORIENTED SOFTWARE TECHNOLOGY WHERE APPLICATIONS ARE CREATED FROM MODULAR AND REUSABLE PROGRAMS IT TREATS PRODUCT SPECIFICATIONS IN THE SAME MANNER MAKING IT EASY TO BUILD EXACTING CONFIGURATIONS FROM NUMEROUS COMPONENTS IN THE SAME WAY THAT LEGO BUILDING BLOCKS CAN BE USED TO CONSTRUCT A MODEL OF MOST ANYTHING SINCE CUSTOMERS SO OFTEN DON'T KNOW OR CAN'T ARTICULATE WHAT IT IS THEY NEED THE BEST WAY TO HELP THEM FIGURE IT OUT IS AS WITH LEGOS TO SIMPLY LET THEM PLAY WITH THE POSSIBILITIES INTELLIGENT ELECTRONICS THE LARGEST RESELLER IN THE COMPUTER INDUSTRY IS ROLLING OUT SALESBUILDER TO SUPPORT ITS INDIVIDUALLY CUSTOMIZED ORDERS WITH ITS MORE SOPHISTICATED BUSINESS CUSTOMERS HAVING DIRECT ACCESS ONLY THOSE CUSTOMERS THAT CAN AND WANT TO HANDLE THE FULL BREADTH OF CHOICES ARE EXPOSED TO THEM AND THEN ONLY WITH A TOOL THAT MAKES THE PROCESS EFFICIENT AND EFFECTIVE AND MAYBE EVEN A LITTLE FUN EVEN RELATIVELY SIMPLE PRODUCTS AND SERVICES CAN MAKE LESS SOPHISTICATED CUSTOMERS TURN GLASSYEYED WHEN THOSE PRODUCTS COME WITH A PLETHORA OF OPTIONS FOR EXAMPLE AT&T COUNTERED MCI'S VERY SUCCESSFUL FRIENDS & FAMILY PROGRAM WITH THE IPLAN ITS ATTEMPT TO ALLOW ITS CUSTOMERS TO DESIGN THEIR OWN INDIVIDUALIZED SERVICES WHILE AT&T'S PLAN SEEMED TO BE A GREAT MARKETING TOOL IT NEVER REALLY PRESENTED CUSTOMERS WITH EASILY EXPLAINED OPTIONS THAT COULD BE EFFECTIVELY EXECUTED MEANWHILE MCI'S APPROACH IS TO PRESENT CUSTOMERS WITH JUST A FEW CHOICES AT A TIME AND TO USE THOSE OCCASIONS WHEN CUSTOMERS CALL THE COMPANY FOR WHATEVER REASON TO REVIEW EACH ACCOUNT ANALYZE IT FOR POTENTIAL SAVINGS AND PRESENT ONE OR TWO MORE CHOICES FOR CUSTOMERS IN A FURTHER DEPARTURE FROM CHINESEMENU MARKETING MCI DEVELOPED A SOFTWARE APPLICATION THAT WOULD PERFORM THE ANALYSIS AUTOMATICALLY SO ITS TELEMARKETERS COULD CALL UP CUSTOMERS WITH THE NEWS OF HOW THEY COULD SAVE MORE MONEY THE IDEAL IS TO PRESENT EACH CUSTOMER WITH ONLY ONE CHOICE NOT OF COURSE THE ONESIZEFITSALL PRODUCT OF THE PAST BUT THE ONE GOOD OR SERVICE TAILORED TO FIT HIS INDIVIDUAL WANTS AND NEEDS THIS APPROACH CAN ONLY BE DONE WITH INDEPTH KNOWLEDGE OF CUSTOMER REQUIREMENTS WHICH IN TURN CAN ONLY BE GAINED THROUGH A LONGSTANDING RELATIONSHIP QUANTIC COMMUNICATIONS OF ANDOVER MASS LETS COMPANIES CAPITALIZE ON THEIR CUSTOMER RELATIONSHIPS BY MASSCUSTOMIZING MARKETING AND SALES MATERIALS SUCH AS BROCHURES VIDEOTAPES AND PRESENTATIONS THUS THE CUSTOMER IS SAVED FROM DEALING WITH OPTIONS THAT HE DOESN'T NEED AND THE COMPANY IS SEEN AS PROVIDING THE CUSTOMER WITH PRECISELY WHAT HE WANTS ED GUSTAFSON THE CREATOR OF QUANTIC'S APPROACH TO MASS CUSTOMIZATION ASKS WHY EVEN SHOW YOUR CUSTOMERS YOUR STANDARD PRODUCT CATALOG OR GIVE THEM THE SAME PRESENTATION EVERYONE ELSE GETS DEMONSTRATE THAT YOU HAVE WHAT THEY REQUIRE AND SHOW THEM ONLY WHAT THEY NEED TO KNOW TO MAKE THE DECISION WHAT COULD BE SIMPLER MR PINE IS PRESIDENT OF A RIDGEFIELD CONNBASED CONSULTING FIRM AND AUTHOR OF MASS CUSTOMIZATION THE NEW FRONTIER IN BUSINESS COMPETITION HARVARD BUSINESS SCHOOL PRESS 1993 9404180053 940418 INTERNATIONAL JUERGEN SCHNEIDER SEEKS BANKRUPTCY PROTECTION KOENIGSTEIN GERMANY THE COMPANY OF JUERGEN SCHNEIDER ONE OF GERMANY'S BIGGEST PROPERTY DEVELOPERS FILED FOR BANKRUPTCY PROTECTION FRIDAY AMID CONFLICTING REPORTS OF THE TOTAL FINANCIAL DAMAGE THE BANKRUPTCY PROCEEDINGS WERE FILED BEFORE A COURT HERE WHERE JUERGEN SCHNEIDER AG IS BASED THE STEP WAS WIDELY EXPECTED BUT ON ITS OWN ISN'T LIKELY TO UNTANGLE THE FINANCIAL CONFUSION THAT FOLLOWED MR SCHNEIDER'S SUDDEN DISAPPEARANCE EARLIER THIS MONTH BANKERS SAID THE CASE AFFECTS A SMALL FRACTION OF MR SCHNEIDER'S DEBT ON PROPERTY HOLDINGS BECAUSE HIS COMPANY WAS MERELY AN ADMINISTRATIVE FRAMEWORK FOR HIS PERSONAL HOLDINGS ITS OWN ASSETS WERE PUT AT ONLY FIVE MILLION MARKS 29 MILLION AT THE HEART OF MR SCHNEIDER'S PROPERTY EMPIRE ARE THE 75 DEVELOPMENT PROPERTIES FOR WHICH BANKS GAVE MR SCHNEIDER MORTGAGEBACKED FINANCING THESE ARE OWNED BY THE DEVELOPER HIMSELF BANKERS EXPLAIN AFTER A BANK CREDITORS' MEETING THURSDAY BANKERS ANNOUNCED THAT MR SCHNEIDER'S TOTAL BANK DEBT TOTALED ABOUT 5 BILLION MARKS MUCH OF WHICH WAS SECURED AGAINST SCHNEIDER PROPERTIES 9404180052 940418 AMONG SERBS FACTS CLASH WITH FANCY IN ATTACK ON GORAZDE THROUGH THE GLASS DARKLY YUGOSLAVS SEE ONLY THINGS THEY WISH TO BELIEVE BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL BELGRADE YUGOSLAVIA SERBIA ISN'T SOMALIA WE SERBS HAVE SHOES WE HAVE BOOTS THE SOMALIS DON'T EVEN HAVE SHOES THE MAN ACCUSED BY THE US OF BEING ONE OF THE TOP WAR CRIMINALS IN SERBIA PUTS THE PHONE CONVERSATION ON HOLD AND MUSIC FROM THE MOVIE THE STING REPLACES HIS VOICE AFTER A FEW SECONDS ZELJKO RAZNJATOVIC A PARAMILITARY LEADER KNOWN BY HIS NOM DE GUERRE ARKAN IS BACK ANYONE WHO KNOWS ANYTHING ABOUT THE MILITARY KNOWS THAT YOU CAN'T DESTROY AN ARMY IN BOSNIA FROM THE AIR HE SAYS GLOATING OVER THE SERBS' LATEST STING ON THE UNITED NATIONS DEFYING TWO UNORDERED AIRSTRIKES LAST WEEK THE SERBS HAVE OVERRUN THE MUSLIM SAFE HAVEN OF GORAZDE AND EVEN SHOT DOWN A BRITISH FIGHTER JET ALONG THE WAY HAVING HUMILIATED THEIR OPPONENTS ARKAN SAYS THE SERBS WILL NOW TURN TO NEGOTIATIONS AND BEHAVE AS CHRIST INSTRUCTED HIS DISCIPLES TO ACT AS WISE AS SERPENTS AND AS HARMLESS AS DOVES IT'S IN THE BIBLE HE SAYS ONE OF THE GOSPELS INDEED SERBIA ISN'T SOMALIA SITE OF A SOMEWHAT MORE SUCCESSFUL UN PEACEKEEPING MISSION SERBIA IS MORE LIKE ALICE'S WONDERLAND INSTEAD OF BEING HUMBLED BY THE AIRSTRIKES CARRIED OUT BY NORTH ATLANTIC TREATY ORGANIZATION PLANES THE SERBS HAVE THE SWAGGER OF A PRIZEFIGHTER STICKING OUT HIS JAW AND ASKING TO BE HIT AGAIN INSTEAD OF ACQUIESCING TO UN CONDITIONS THEY ARE MAKING THEIR OWN DEMANDS AND INSTEAD OF LOOKING LIKE LOSERS IMPOVERISHED BY INTERNATIONAL ECONOMIC SANCTIONS AND SHUNNED BY MOST OF THE PLANET THEY DISPLAY THE COCKINESS OF WORLD BEATERS THE REAL AND THE SURREAL CLASH ACROSS THIS LAND AT THE BELGRADE HYATT FRANTIC DIPLOMATS TRYING TO TALK THE SERBS INTO MAKING PEACE RUSH TO AND FRO AS STRAUSS WALTZES WAFT FROM THE TEA ROOM AFTER A NIGHT OF GRUELING NEGOTIATIONS LORD OWEN OF THE EUROPEAN UNION AND THE UN'S THORVALD STOLTENBERG FIND THEIR LOBBY NEWS CONFERENCE COLLIDING WITH A FASHION SHOW IN THE BORDER TOWN OF MOKRA GORA 35 MILES FROM GORAZDE FIVE MEN AT AN OUTDOOR CAFE SLEEPILY DRINK FRESHLY PRESSED LEMONADE AND 20YEAROLD PLUM SLIVOVITZ AT THE SAME TIME A NATO JET IS TAKING SERBIAN ANTIAIRCRAFT FLAK OVER GORAZDE CLINTON CAN BOMB AS LONG AS HE WANTS AND WHEREVER HE WANTS BUT IT WON'T MATTER SAYS MARKO MALIC THE GRAYBEARDED PRINCIPAL OF THE LOCAL SCHOOL BOMBS DON'T SCARE THE SERBS UNDER A BLOSSOMING PEAR TREE IN THE HILLS ABOVE THE CENTRAL SERBIAN CITY OF UZICE GORAZDE REFUGEE RELJA ANDRIC DISPLAYS HIS WAR INJURIES I CAN TAKE OUT MY GLASS EYE IF YOU DON'T BELIEVE ME HE OFFERS HE POINTS TO THE SCARS ON HIS LEGS AND FACE PROOF HE INSISTS THAT THE SERBS ARE NOT THE AGGRESSORS BUT RATHER THE AGGRIEVED I WAS IN FRONT OF MY HOUSE WHEN I GOT SHOT SAYS THE 58YEAROLD MECHANIC ONE THOUSAND YEARS AGO GORAZDE WAS ALL SERBIAN THEN THE MUSLIMS CAME AND STARTED HAVING CHILDREN AND THEY TOOK OVER MUSLIMS HAVE A LOT OF KIDS LIKE PIGS IN SERBIA ANY JUSTIFICATION OF THE SERBIAN OFFENSIVE AND RATIONALE FOR THE NATO BOMBING WILL DO THE DAY AFTER NATO'S INITIAL APRIL 10 BOMBING BY AMERICAN JETS A SOMBER GROUP OF POLITICIANS ACADEMICS AND ARTISTS APPEARED ON SERBIAN TELEVISION TO SPIN A WEB OF CONSPIRACY THEORIES POET MOMO KAPOR ARGUES THAT THE BOMBING WAS TIMED TO COINCIDE WITH THE 50TH ANNIVERSARY OF THE US BOMBING OF BELGRADE IN 1944 IT WAS EASTER MIDAPRIL I REMEMBER BECAUSE ONE OF MY RED EASTER EGGS BROKE HE SAYS SADLY IT WAS FROM MY GRANDMOTHER APRIL 10 HE CLAIMS ALSO MARKS THE FOUNDING OF THE CROATIAN FASCIST STATE IN WORLD WAR II THE PARALLEL WASN'T LOST ON THE VIEWERS IN 1991 THE SERBS BATTLED CROATS WHEN CROATIA BROKE FREE OF MODERNDAY YUGOSLAVIA TO CREATE ITS OWN STATE NATO DID IT TO KEEP THE WAR GOING INSISTS MIHAJLO MARKOVIC A CLOSE ASSOCIATE OF SERBIAN PRESIDENT SLOBODAN MILOSEVIC IT'S BECAUSE THE MUSLIMS HAVE THE OIL THAT'S WHY THEY DID IT SAYS NOTED SLAVIC LINGUIST PAVLE IVIC THE US IS DEPENDENT ON MUSLIM OIL THE US IS BOTH DESPISED AND ADMIRED WE LEARNED OUR MORALS FROM SPAGHETTI WESTERNS NOTES MR KAPOR REFERRING TO THE FILMS THAT GAVE YOUNG YUGOSLAVS OF THE TIME A NEW WAY OF LOOKING AT THE WORLD OTHER THAN THROUGH COMMUNIST IDEOLOGY I'VE TRAVELED IN THE US IN TEXAS AND NORTH CAROLINA HE SAYS THERE IS A RULE OF PRIVATE PROPERTY YOU CAN KILL ANYONE WHO TRESPASSES HERE WE HAVE BOOKS THAT SHOW WHO OWNED PROPERTY IN BOSNIA BACK TO AUSTROHUNGARIAN TIMES THIS IS WHY HE SAYS SERBS FEEL JUSTIFIED IN FIGHTING FOR WHAT THEY BELIEVE IS THEIRS INVOKING ANOTHER SPAGHETTI WESTERN LESSON HE LASHES OUT AT THOSE SERBS WHO CRITICIZE THE WAR IF AMERICANS HATE ANYONE HE SAYS THEY HATE TRAITORS SCENES OF HATE PRECEDED THE TVPANEL DISCUSSION FOOTAGE OF BOMBEDOUT HOUSES AND BURNING VILLAGES FROM WHAT WAS DESCRIBED AS A MUSLIM RAMPAGE AROUND GORAZDE A REPORTER TELLS OF A SERB SOLDIER WHO WAS CAPTURED BY THE MUSLIMS SKEWERED ON A SPEAR AND EXHIBITED IN FRONT OF A HOTEL HE STAYED ALIVE FOR A FEW DAYS SAYS THE SERBIAN JOURNALIST SUCH COVERAGE HAS SET OFF WILD RUMORS THROUGHOUT SERBHELD TERRITORIES MY WAITRESS READ IN THE NEWSPAPER THAT THE AMERICANS HAVE DEVELOPED A BOMB THAT BLINDS PEOPLE DOESN'T KILL THEM JUST BLINDS THEM SAYS DARKO KOVACEVIC A CAFE OWNER IN VUKOVAR A CROATIAN CITY CONTROLLED BY THE SERBS WHAT KIND OF COUNTRY COULD DO SOMETHING LIKE THAT WE'LL HAVE 50000 BLIND PEOPLE STUMBLING AROUND TOLD THAT NATO HAD LAUNCHED AIRSTRIKES AGAINST THE SERBS AROUND GORAZDE PETRA OBRADOVIC FROM THE SERBIAN CITY OF NOVI SAD SHAKES HER HEAD FURIOUSLY IMPOSSIBLE THERE AREN'T ANY SERBS LEFT IN BOSNIA SHE SAYS DRAWING A FINGER ACROSS HER THROAT MUSLIMS KILLED THEM ALL SERBIAN PARAMILITARY LEADERS REPORT A FLOOD OF NEW VOLUNTEERS VOJISLAV SESELJ LEADER OF THE SERBIAN RADICAL PARTY VISITED SERB TROOPS AROUND GORAZDE AND WARNED THAT THEY WOULD NEXT ATTACK COUNTRIES LIKE AUSTRIA AND ITALY MR SESELJ WHO ENVISIONS A GREATER SERBIA THAT STRETCHES INTO CENTRAL EUROPE CHARGES 500 FOR AN INTERVIEW HIS SECRETARY PROVIDES A FREE QUOTE WE'RE NOT SITTING STILL WITH OUR ARMS CROSSED BEHAVING OURSELVES BUT ARKAN WHO ONCE HONEYMOONED IN THE US AND FONDLY TALKS OF HIS AUNT IN CLEVELAND SAYS HE IS TELLING HIS VOLUNTEERS THAT IT IS TIME FOR RAPPROCHEMENT WITH THE WEST AND WITH THE US IN PARTICULAR WE DON'T WANT TO DESTROY ALL OUR BRIDGES THE PARAMILITARY COMMANDER SAYS IT'S FUNNY THAT WE NOW ARE SAID TO BE LIKE IRAQIS AND LIBYANS ALL SERBS ARE TERRORISTS NOW WHEN WE READ IN NEWSPAPERS AND HEAR ON TV SOMETHING ABOUT THE IRAQIS AND LIBYANS I DON'T BELIEVE IT ANYMORE BECAUSE NOW THEY SAY THE SAME THINGS AGAINST US THEY SAY WE ARE BAD BUT I KNOW WE ARE NOT HE MOANS WE DON'T DESERVE THIS WE ARE CHRISTIANS THE SELFPITY DOESN'T LAST THE BRAVADO RETURNS THEY BOMBED US ARKAN SAYS NOW WHAT MORE CAN THEY DO 9404180051 940415 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 9404180050 940418 TECHNOLOGY MOTOROLA PLANS TO UNVEIL NEW MICROPROCESSOR TODAY SCHAUMBURG ILL MOTOROLA INC PLANS TO UNVEIL TODAY THE LAST HEIR TO A GENERATION OF MICROCHIPS THAT HAVE POWERED PERSONAL COMPUTERS FOR 15 YEARS THE COMPANY SAID ITS NEW 68060 MICROPROCESSOR IS ABOUT THREE TIMES FASTER THAN THE 68040 CHIP USED IN APPLE COMPUTER INC'S MACINTOSH AND OTHER COMPUTERS THAT PUTS IT IN THE SPEED CLASS OF INTEL CORP'S PENTIUM PROCESSOR AND AT LESS THAN HALF THE PRICE BUT APPLE HAS CAST ITS LOT WITH A NEWER CHIP CALLED POWERPC THAT HAS BEGUN APPEARING IN NEW MACINTOSH SYSTEMS MOTOROLA AND INTERNATIONAL BUSINESS MACHINES CORP ARE MANUFACTURING THAT CHIP IN AN ALLIANCE WITH APPLE SO THE 68060 IS MAINLY BEING MARKETED FOR USE OUTSIDE COMPUTERS IN CONTROL APPLICATIONS SUCH AS TELECOMMUNICATIONS AND NETWORKING SYSTEMS IN FOLLOWON MODELS MOTOROLA PLANS TO STRIP OUT COMPUTERRELATED FUNCTIONS TO MAKE THE PRODUCT EVEN MORE ATTRACTIVE AS A CONTROLLER ACCORDING TO JIM REINHART A MOTOROLA MARKETING MANAGER FOR MICROPROCESSORS THE 68060 WILL SHIP IN SAMPLE QUANTITIES IN THE THIRD QUARTER THE CHIP IS LISTED AT 263 EACH IN QUANTITIES OF AT LEAST 10000 FOR A VERSION RUNNING AT 50 MEGAHERTZ 9404180049 940418 BUSINESS BRIEF ARMSTRONG WORLD INDUSTRIES INC SHARES RISE AFTER ESTIMATE OF 1STPERIOD PROFIT GROWTH SHARES OF ARMSTRONG WORLD INDUSTRIES INC ROSE ALMOST 4 AFTER THE COMPANY SAID IT EXPECTS TO REPORT HIGHERTHANEXPECTED FIRSTQUARTER PROFIT THE LANCASTER PA PRODUCER AND MARKETER OF INTERIOR FURNISHINGS ESTIMATED ITS FIRSTQUARTER OPERATING EARNINGS AT MORE THAN 37 MILLION OR 85 CENTS A SHARE ON A FULLY DILUTED BASIS A YEAR AGO ARMSTRONG EARNED 113 MILLION OR 21 CENTS A SHARE ON A FULLY DILUTED BASIS IN NEW YORK STOCK EXCHANGE TRADING ARMSTRONG'S SHARES CLOSED AT 5412 UP 2 THE COMPANY SAID FIRSTQUARTER SALES INCREASED ABOUT 5 FROM A YEAR AGO REFLECTING DOUBLEDIGIT GROWTH IN THE FURNITURE SEGMENT AND INCREASES IN ITS FLOOR COVERING AND BUILDING PRODUCTS UNITS THE YEARAGO SALES WERE 612 MILLION INCLUDING ONETIME GAINS ARMSTRONG EXPECTS TO REPORT ITS FIRSTQUARTER NET INCOME INCREASED TO 46 MILLION OR 106 A SHARE 9404180048 940418 BUSINESS BRIEF DELTA QUEEN STEAMBOAT CO RIVER CRUISE LINE TO REPORT 1STPERIOD LOSS FLOODS CITED DELTA QUEEN STEAMBOAT CO EXPECTS TO REPORT A FIRSTQUARTER NET LOSS OF 10 CENTS TO 20 CENTS A SHARE AS THE COMPANY STRUGGLES TO REGAIN BUSINESS AFTER LAST YEAR'S MISSISSIPPI RIVER FLOODING S CODY ENGLE CHIEF EXECUTIVE OFFICER SAID THE LOSS WOULD BE WIDER THAN ESTIMATES OF SIX CENTS TO 10 CENTS A SHARE FOR ALL 1994 MR ENGLE SAID THAT ANALYSTS' ESTIMATES THE COMPANY WILL RECORD EARNINGS OF 40 CENTS TO 50 CENTS A SHARE SHOULD HOLD WHILE PASSENGER BOOKINGS ARE STILL 87 BEHIND A YEAR AGO YEARTOYEAR COMPARISONS WERE OFF 33 LAST SEPTEMBER MR ENGLE SAID EARNINGS SHOULD IMPROVE IN THE SECOND AND THIRD QUARTERS WHICH ARE TRADITIONALLY PROSPEROUS FOR THE 1993 CALENDAR YEAR DELTA HAD EARNINGS OF 42 MILLION OR 36 CENTS A SHARE ON REVENUE OF 1217 MILLION 9404180047 940418 BUSINESS BRIEF MORRISON KNUDSEN CORP CONSTRUCTION FIRM TO REPORT IMPROVED FIRSTQUARTER NET MORRISON KNUDSEN CORP SAID IT EXPECTS TO REPORT FIRSTQUARTER NET INCOME HIGHER THAN THE YEAREARLIER PERIOD'S 79 MILLION OR 26 CENTS A SHARE THE BOISE IDAHO CONSTRUCTION AND ENGINEERING CONCERN SAID IT PLANS TO RELEASE ITS FORMAL RESULTS ON FRIDAY MORRISON KNUDSEN CLOSED LAST FRIDAY AT 27375 UNCHANGED IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9404180046 940418 WHAT'S NEWS BUSINESS AND FINANCE KIDDER PEABODY FIRED ITS HEAD GOVERNMENTBOND TRADER AFTER UNCOVERING A PHANTOM TRADING SCHEME THAT WILL RESULT IN A 350 MILLION PRETAX CHARGE AGAINST FIRSTQUARTER PROFIT AT ITS PARENT GENERAL ELECTRIC THE DISMISSAL ALONG WITH THE SUSPENSION OF SIX OTHERS STEMMED FROM A SCHEME IN THE GOVERNMENTSTRIPS AREA THAT CREATED PHANTOM TRADES AND PROFITS THAT LASTED FOR ABOUT A YEAR DIGITAL EQUIPMENT PROMISED A SIGNIFICANT RESTRUCTURING AFTER REPORTING THAT ITS THIRDQUARTER LOSS WIDENED TO 1833 MILLION FROM 301 MILLION ANALYSTS SAID THE COMPUTER FIRM WILL HAVE TO CUT UP TO 20000 MORE WORKERS TREASURY SECRETARY BENTSEN SAID HE IS PREPARED FOR THE FEDERAL RESERVE TO RAISE SHORTTERM INTEREST RATES ANOTHER HALF PERCENTAGE POINT THIS YEAR RISING SHORTTERM INTEREST RATES ARE LIKELY TO EAT INTO CORPORATE PROFITS OVER THE NEXT YEAR REVERSING A TREND THAT HELPED JUMPSTART THE ECONOMY FIRST UNION GOT APPROVAL TO BUY A MUTUALFUND COMPANY SIGNALING THAT US REGULATORS MAY ALSO CLEAR OTHER BANK PURCHASES OF MUTUALFUND FIRMS A MUNICIPALBOND FUND AGREED TO A SETTLEMENT AFTER ALLEGEDLY FAILING TO DISCLOSE THE RISKS IT TOOK BY INVESTING 40 OF ITS MONEY IN DERIVATIVES REGULATORS ARE PROBING OTHER FUNDS' DISCLOSURE OF RISKS FROM FIXEDINCOME DERIVATIVES ESPECIALLY INVERSE FLOATERS BRAZIL COMPLETED A DEAL TO RESTRUCTURE 52 BILLION OF ITS FOREIGN LOANS BUT THE ACCORD HASN'T YET RECEIVED BACKING FROM THE IMF AND THE DART FAMILY INDUSTRIAL PRODUCTION ROSE 05 LAST MONTH FOLLOWING A REVISED INCREASE OF 06 IN FEBRUARY OLYMPIA & YORK'S US UNIT IS BEING LOOKED AT BY INVESTORS SUCH AS MORTIMER ZUCKERMAN KOHLBERG KRAVIS GE CAPITAL AND GM'S PENSION FUND REFLECTING EXPECTATIONS THAT ITS OFFICETOWER PORTFOLIO HAS LONGTERM VALUE THE CHICAGO BOARD OF TRADE PLANS TO WITHDRAW FROM GLOBEX THE GLOBAL ELECTRONIC FUTURESTRADING NETWORK AND DEVELOP AN ALTERNATIVE AFTERHOURS TRADING SYSTEM WITH BLOOMBERG INVESTORS ARE BORROWING HEAVILY TO BUY STOCKS AND BONDS DESPITE THIS YEAR'S MARKET MAYHEM AS RATES HAVE REMAINED LOW FOR MARGIN LOANS FIGGIE INTERNATIONAL'S OUTSIDE AUDITOR SAID ITS 1993 FINANCIAL STATEMENTS RAISE SUBSTANTIAL DOUBT ABOUT ITS ABILITY TO CONTINUE AS A GOING CONCERN WARNERLAMBERT EXPECTS TO REPORT AN INCREASE OF 5 IN PERSHARE PROFIT AND 11 IN SALES FOR THE FIRST QUARTER GENERAL COMPUTER RESTATED ITS RESULTS FOR THE FIRST TWO QUARTERS OF FISCAL 1994 POSTING LOSSES INSTEAD OF PROFITS CANADA'S INFLATION RATE HAS DROPPED TO ITS LOWEST LEVEL IN OVER 30 YEARS BUT IT HAS FAILED TO BOOST CANADIAN BONDS OR THE CANADIAN DOLLAR CANADIAN CONSUMER PRICES IN MARCH WERE UP 02 FROM A YEAR EARLIER USG'S CHAIRMAN RECEIVED A 13FOLD RAISE IN PAY FOR 1993 TO ABOUT 73 MILLION AS THE WALLBOARD MAKER EMERGED FROM BANKRUPTCYLAW PROTECTION INTO A BOOMING MARKET FOR CYCLICAL STOCKS TRW AGREED TO PAY 29 MILLION TO SETTLE CLAIMS THAT EMPLOYEES OVERCHARGED ON MILITARY SUBCONTRACTS TRW SAID THE SETTLEMENT WITH THE JUSTICE DEPARTMENT WILL NOT HAVE A MATERIAL EFFECT ON ITS EARNINGS BONDS LEHMAN BROTHERS TREASURY INDEX 510914 UP 153 COMMODITIES OIL 1658 A BARREL UP 35 CENTS DOW JONES FUTURES INDEX 13741 OFF 015 SPOT INDEX 13074 OFF 045 DOLLAR 10345 YEN OFF 070 17135 MARKS UP 00040 9404180045 940418 BUSINESS BRIEF TIMBERLAND CO PLAN IS SET TO CUT 150 JOBS PLANTS' EFFICIENCY IS CITED TIMBERLAND CO SAID IT WILL PHASE OUT ABOUT 150 POSITIONS AT ITS MANUFACTURING PLANTS IN MOUNTAIN CITY TENN AND BOONE NC OVER THE NEXT SIX WEEKS THE HAMPTON NH MAKER OF OUTDOOR APPAREL AND FOOTWEAR SAID THE TWO PLANTS WILL EMPLOY MORE THAN 800 FOLLOWING THE REDUCTION TIMBERLAND HAS A WORLDWIDE STAFF OF 7000 THE CUTS REDUCE THE NUMBER OF EMPLOYEES TO THE LEVEL OF SIX MONTHS AGO BEFORE THE COMPANY ADDED STAFF TO HANDLE AN INCREASE IN DEMAND FOR FOOTWEAR DEMAND HASN'T DIMINISHED BUT EFFICIENCIES AT THE PLANTS HAVE IMPROVED A COMPANY SPOKESWOMAN SAID THE SPOKESWOMAN SAID SHE DIDN'T KNOW IF PRICES ON SOME OF ITS SHOES WOULD BE REDUCED AS A RESULT BUT SHE ADDED THAT THE REDUCTIONS ARE PART OF TIMBERLAND'S EFFORT TO IMPROVE THE COMPETITIVENESS OF ITS OWNED MANUFACTURING FACILITIES 9404180044 940418 NEW COMPAQ FLAGSHIP PC LINE HOUSTON COMPAQ COMPUTER CORP IS REPLACING ITS FLAGSHIP DESKPRO M LINE OF PERSONAL COMPUTERS WITH A NEW HIGHEND FAMILY THE COMPUTER MAKER IS EXPECTED TODAY TO UNVEIL ITS DESKPRO XL SERIES AIMED AT CORPORATE COMPUTER USERS WHO REQUIRE HIGHPERFORMANCE FULLY LOADED PCS THE NEW MACHINES WILL BE PRICED FROM 2599 LESS THAN AN ENTRYLEVEL DESKPRO M AND INCLUDE FEATURES SUCH AS A SPEAKER AND MICROPHONE BUILT INTO THE KEYBOARD AND A REDESIGNED INTERNAL FAN THAT REDUCES THE NOISE MADE BY THE MACHINE THE NEW COMPUTERS ARE EXPECTED TO BEGIN SHIPPING THIS WEEK 9404180043 940418 WHAT'S NEWS WORLDWIDE SERBS SEIZED MUCH OF GORAZDE AND THEN AGREED TO HALT THEIR ATTACKS UN ENVOY AKASHI WHO NEGOTIATED THE TRUCE ACCORD SAID THAT THE BOSNIAN SERBS AGREED TO WITHDRAW FROM THE MUSLIM ENCLAVE AS FAR AS POSSIBLE AND AS SOON AS POSSIBLE BUT SOME REPORTS HAD SERBIAN MILITARY FORCES INCLUDING A TANK ENTERING THE CENTER OF GORAZDE SNIPER FIRE WAS ALSO REPORTED AND SARAJEVO RADIO SAID THERE WERE A NUMBER OF CASUALTIES UN OFFICIALS IN NEW YORK AND SARAJEVO SAID THAT WITH THE COLLAPSE OF MUSLIM DEFENSES AROUND GORAZDE THERE WAS NOTHING TO PREVENT SERB FORCES FROM OVERRUNNING THE ENCLAVE HAVING DECIDED OVER THE WEEKEND AGAINST MORE FORCEFUL MILITARY ACTION TO STOP THE ONSLAUGHT THE US AND ITS ALLIES WERE LIMITED IN THEIR ABILITY TO RESPOND THE EPA WILL ISSUE A WARNING AS EARLY AS TODAY ABOUT THE POSSIBLE DANGERS OF LEAD IN WELL WATER WITH OFFICIALS ADVISING MANY PEOPLE TO TEMPORARILY SWITCH TO BOTTLED WATER CONCERNED ABOUT POTENTIAL CONTAMINATION FROM SOME UNDERGROUND PUMPS THE AGENCY PLANS TO URGE WELL OWNERS TO HAVE THE WATER TESTED FOR LEAD VIOLENCE IN PUBLIC HOUSING HAS PROMPTED THE CLINTON ADMINISTRATION TO PROPOSE LETTING POLICE WITHOUT WARRANTS RAID MORE APARTMENTS AND DO MORE SEARCHES IN HOUSING COMPLEXES THE PLAN WOULD URGE LOCAL HOUSING AUTHORITIES TO ASK TENANTS TO PERMIT A CLAUSE IN THEIR LEASES AUTHORIZING THE SEARCHES RWANDAN SOLDIERS RAPED AND SLAUGHTERED CIVILIANS IN KIGALI WHILE BATTLES WITH REBELS RAGED FOR AN 11TH DAY IN THE CAPITAL WITNESSES SAID ABOUT 3600 TUTSI REBELS HAVE INFILTRATED THE CITY CLASHING WITH ARMY UNITS AND THE PRESIDENTIAL GUARD CEASEFIRE TALKS HAD STALLED OVER THE WEEKEND THREE PEOPLE WERE CRUSHED TO DEATH AND 21 OTHERS INJURED IN A STAMPEDE DURING A SOUTH AFRICAN CAMPAIGN RALLY ADDRESSED BY AFRICAN NATIONAL CONGRESS LEADER MANDELA MEANWHILE THE ZULUDOMINATED INKATHA PARTY WHICH IS BOYCOTTING THIS MONTH'S VOTE POSTPONED TODAY'S PLANNED PROTEST MARCH IN AN ATTEMPT TO AVOID VIOLENCE THE CLINTONS WILL RECEIVE A TAX REFUND FOR 1993 OF 7982 THEIR ADJUSTED GROSS INCOME FOR LAST YEAR WAS 293757 INCLUDING THE PRESIDENT'S SALARY OF 189167 THEY PAID FEDERAL INCOME TAXES TOTALING 62670 JAPAN'S POLITICAL SYSTEM FRACTURED FURTHER OVER THE WEEKEND AS LAWMAKERS ATTEMPTED TO AGREE ON A NEW PRIME MINISTER A FORMER DEPUTY PRIME MINISTER WATANABE SAID HE WOULD LEAVE THE OPPOSITION LDP TO FORM HIS OWN BLOC PARLIAMENT MAY VOTE ON A SUCCESSOR TO HOSOKAWA AS EARLY AS TOMORROW ISRAELI NEWSPAPERS PUBLISHED DETAILS OF A DRAFT PEACE PROPOSAL THAT THE RABIN GOVERNMENT WILL ASK SECRETARY OF STATE CHRISTOPHER TO DELIVER TO SYRIA LATER THIS MONTH THE PROPOSAL REPORTEDLY INCLUDES A DECLARATION OF ISRAEL'S COMMITMENT TO THE IDEA OF WITHDRAWING FROM THE GOLAN HEIGHTS BUT DOESN'T SAY WHETHER THIS MEANS A COMPLETE PULLOUT THE PLO AND ISRAEL BEGAN A NEW ROUND OF CAIRO TALKS ON LIMITED PALESTINIAN SELFRULE AND THE PLO SAID IT WAS EAGER TO REACH AN AGREEMENT THIS WEEK THE NEGOTIATIONS HAVE BEEN DRAGGING ON FOR MORE THAN FOUR MONTHS CAUSING A DELAY IN THE ISRAELI PULLOUT FROM THE GAZA STRIP AND JERICHO THE IMF IS LIKELY TO APPROVE A 15 BILLION LOAN TO RUSSIA THIS WEEK THAT COULD OPEN THE WAY FOR BILLIONS OF DOLLARS OF POSTPONED WESTERN AID TO BEGIN MOVING TO THE YELTSIN GOVERNMENT IMF OFFICIALS SAID THE LOAN PROPOSAL IS TO BE CONSIDERED WEDNESDAY MEXICAN GUERRILLAS ARE READY TO RESUME THE PEACE TALKS THEY SUSPENDED LAST MONTH BUT A DATE FOR THE DISCUSSIONS HASN'T BEEN SET A ROMAN CATHOLIC MEDIATOR ANNOUNCED THE REBEL ARMY SUSPENDED THE PEACE PROCESS SHORTLY AFTER THE MARCH 23 SLAYING OF THE RULING PARTY'S PRESIDENTIAL CANDIDATE COLOSIO TURKISH ARMY COMMANDOS KILLED 57 KURDS IN FIVE DAYS OF MILITARY OPERATIONS IN NORTHERN IRAQ ACCORDING TO REPORTS FROM ISTANBUL SEPARATELY TWO TEAMS OF UN WEAPONS INSPECTORS WERE SCHEDULED TO FLY TO BAGHDAD TODAY TO RESUME GATHERING DATA DIED RALPH ELLISON 80 AUTHOR OF THE NOVEL INVISIBLE MAN WHICH DESCRIBED HUMILIATIONS EXPERIENCED BY AN IDEALISTIC YOUNG BLACK MAN IN AMERICA SATURDAY IN NEW YORK OF PANCREATIC CANCER 9404180042 940418 UNITED WASTE BUYS COMPANY GREENWICH CONN UNITED WASTE SYSTEMS INC ACQUIRED ORLANDO TRUCKING INC A WASTECOLLECTION FIRM IN WORCESTER MASS FINANCIAL TERMS WERE NOT DISCLOSED IN A NEWS RELEASE THE COMPANY SAID ORLANDO HAD REVENUE OF ABOUT 45 MILLION IN 1993 UNITED WASTE ALSO SAID IT WILL ANNOUNCE ITS FIRSTQUARTER RESULTS APRIL 27 9404180041 940418 THE INEVITABLE OUTCOME OF OUTCOMES' BY IRVING KRISTOL SOME OF MY BEST FRIENDS EXPERTS IN THE FIELD OF EDUCATION THOUGHT IT WAS A GOOD IDEA I WAS SKEPTICAL OF THE ABILITY OF THE FEDERAL GOVERNMENT TO ENACT ANY KIND OF SERIOUS EDUCATIONAL REFORM BUT I DEFERRED TO THEIR SUPERIOR KNOWLEDGE AND JUDGMENT WELL NOW THAT THE GOALS 2000 EDUCATE AMERICA ACT HAS BECOME LAW I FIND MY SKEPTICISM VINDICATED IT WILL BE AN EXPENSIVE DISASTER THIS EXPERIENCE HAS ONLY CONFIRMED KRISTOL'S FIRST LAW OF EDUCATIONAL REFORM IT IS THIS ANY REFORM THAT IS ACCEPTABLE TO THE EDUCATIONAL ESTABLISHMENT AND THAT CAN GAIN A MAJORITY IN A LEGISLATURE FEDERAL OR STATE IS BOUND TO BE WORSE THAN NOTHING THE REASON IS SO SIMPLE AS TO BE ALMOST INCREDIBLE PROFESSIONAL EDUCATORS AND PROFESSIONAL POLITICIANS ARE THE MOST POWERFUL ENEMIES OF AMERICAN EDUCATION THEIR ENMITY DERIVES FROM BOTH INTEREST AND IDEOLOGY IT IS INERADICABLE IMMUNE TO REASON ARGUMENT OR EXPERIENCE THE LAW ITSELF IS SOME 400 PAGES LONG THE DEFINING REGULATIONS WILL BE 10 TIMES AS LONG AND ONCE LITIGIOUS LAWYERS AND THE COURTS GET INVOLVED THE ORIGINAL TEXT WILL BE BUT A BLUR IN THE END THE EDUCATIONAL ESTABLISHMENT WILL GET MORE MONEY TO CONTINUE DOING WHAT IT IS DOING THE POLITICIANS WILL GET A FEW FAVORITE IDEAS OF THEIR OWN INVARIABLY FOOLISH INCORPORATED INTO THE EDUCATIONAL SYSTEM AND THERE WILL BE NO REAL IMPROVEMENT IN THE EDUCATION OF AMERICAN YOUNGSTERS AND YET IT SEEMED IN THE BEGINNING UNDER PRESIDENT BUSH TO BE SUCH A SENSIBLE PROJECT THE IDEA WAS TO FOCUS LESS ON THE INPUT IE DOLLARS INTO AMERICAN EDUCATION AND MORE ON OUTCOMES IE WHAT CHILDREN ACTUALLY LEARN AFTER ALL FOR SEVERAL DECADES NOW WE HAVE BEEN SPENDING EVER MORE PER STUDENT ON EDUCATION AND YET THE READING LEVELS WRITING LEVELS MATH LEVELS AND STUDENT BEHAVIOR IN GENERAL HAVE SHOWN NO IMPROVEMENT TO UNDERSTATE THE CASE SO WHY NOT INSIST ON BETTER OUTCOMES BETTER PERFORMANCE BY OUR YOUNG PEOPLE AND SPEND MONEY TO ENSURE THIS RESULT IT SOUNDED SO OBVIOUS SO EASY FRUSTRATED PARENTS AND TAXPAYERS WOULD BE DELIGHTED BY THIS SHIFT IN FOCUS AND THE MEDIA IN THEIR MINDLESS WAY COULD BE COUNTED ON FOR THEIR BLAND APPROVAL AH BUT WHAT'S AN OUTCOME THAT'S A LOT LESS OBVIOUS THAN ONE USED TO THINK IS IT MERELY TEST SCORES SURELY THERE IS MORE TO EDUCATION THAN THAT SO DEFINING OUTCOMES HAS BECOME THE NEW EDUCATIONAL GAME IN THE 1990S IT IS A GAME THAT OUR PROFESSIONAL EDUCATORS AND PROFESSIONAL POLITICIANS ARE VERY SKILLED AT SO SKILLED SO SOPHISTICATED AND SO ARTICULATE THAT IN SHORT ORDER PARENTS ARE LEFT WITH NOTHING TO SAY WHY IS THE EDUCATIONAL SYSTEM ONE HUGE POWERFUL ANTIBODY WHEN IT COMES TO REFORM MOST INDIVIDUAL TEACHERS CONSCIENTIOUSLY AND SINCERELY WANT THEIR STUDENTS TO BE BETTER EDUCATED THERE IS NO REASON TO DOUBT THAT YET AS A COLLECTIVITY THEY ARE PRESIDING OVER A DISASTER WHILE RESISTANT TO ANY FUNDAMENTAL CHANGES THE EXPLANATION I WOULD SUGGEST IS TWOFOLD INTEREST AND IDEOLOGY AT THE HEART OF THE EDUCATIONAL ESTABLISHMENT ARE THE TEACHERS' UNIONS WHICH BEHAVE WELL LIKE UNIONS NO REFORM IS ACCEPTABLE TO THEM THAT DIMINISHES IN ANY WAY THEIR CONTROL OVER CERTIFICATION JOB SECURITY REMUNERATION AND WHAT WE MIGHT CALL WORK RULES THEIR IDEA OF REFORM IS MORE PUBLIC EXPENDITURE SO THAT THERE WILL BE MORE TEACHERS WORKING FEWER HOURS RECEIVING BETTER PAY AND HAVING IRONCLAD SECURITY OF TENURE JUST TRY REFORMING ANY INSTITUTION PUBLIC OR PRIVATE WITH SUCH LIMITATIONS AN ABSURD IDEA BUT TEACHERS' UNIONS ARE SO POLITICALLY POWERFUL THAT EVERYONE PRETENDS THESE LIMITATIONS ARE NOT SO IMPORTANT AFTER ALL IDEOLOGY IS NO LESS IMPORTANT THAN INTEREST AGAIN MOST INDIVIDUAL TEACHERS ARE NOT IDEOLOGICAL CREATURES BUT AS A COLLECTIVITY THEY ARE REQUIRED TO THINK ALONG LINES SET DOWN BY THE SCHOOLS OF EDUCATION WHERE THEY GET THEIR CERTIFYING DEGREES AND BY THE ADMINISTRATORS OF SCHOOL SYSTEMS WHO ALMOST ALWAYS HAVE DONE POSTGRADUATE WORK IN THOSE SCHOOLS THE IDEOLOGY OF THESE SCHOOLS IS WHAT USED TO BE CALLED PROGRESSIVE BUT IS NOW SIMPLY AN UNCHALLENGEABLE ORTHODOXY THE KEY TO THIS ORTHODOXY IS THE DISTINCTION RARELY MADE EXPLICITLY FOR REASONS OF PRUDENCE BETWEEN SCHOOLING AND EDUCATION SCHOOLING WAS WHEN STUDENTS WERE REQUIRED TO SIT QUIETLY IN CLASS WHILE LEARNING TO READ WRITE AND RECKON AS BEST THEIR NATIVE ABILITIES PERMITTED THEY WERE ALSO REQUIRED TO MEMORIZE SUCH THINGS AS THE DECLARATION OF INDEPENDENCE THE GETTYSBURG ADDRESS AND A FEW POEMS IN MY DAY JOYCE KILMER'S TREES WAS EVERYWHERE THE FAVORITE SUCH ROTELEARNING AND MEMORIZATION ARE NOW SCORNED EDUCATION AS DISTINCT FROM SCHOOLING AIMS TO DEVELOP THE CREATIVE POTENTIAL OF THE WHOLE PERSON THERE IS A LOT OF METAPHYSICS BEHIND THIS NOTION INVOLVING HUMAN PERFECTIBILITY HUMAN MALLEABILITY AND NATURAL HUMAN SOCIABILITY THERE IS ALSO SOME POLITICAL PHILOSOPHY AS WELL SINCE IT IS ASSUMED THAT EVERY YOUNGSTER HAS A CREATIVE POTENTIAL WHICH MUST NOT BE DISCOURAGED BY GRADING TRACKING STRICT DISCIPLINE A DRESS CODE OR INTELLECTUAL DISCRIMINATION OF ANY KIND EGALITARIANISM AND A KIND OF BLAND POLITICAL CORRECTNESS RULE THE DAY INTELLECTUAL EXCELLENCE MAY BE ACKNOWLEDGED BUT NOT REWARDED SOCIAL COOPERATION A WARM AND FRIENDLY ATTITUDE TOWARD ONE'S FELLOWS A CAPACITY FOR ENTHUSIASM ABOUT ANYTHING FROM TURTLES TO RAP MUSIC ARE ALL SIGNS OF EQUAL WORTH THAT A YOUNGSTER IS BEING PREPARED TO BE A GOOD CITIZEN IN OUR DEMOCRACY AS WITH EDUCATORS SO WITH POLITICIANS ASIDE FROM THE FACT THAT THEY HAVE LITTLE STOMACH FOR CONFRONTING THE TEACHERS' UNIONS POLITICIANS FIND IT CONVENIENT TO MOVE TRADITIONAL SCHOOLING TO AN EXPANDED VERSION OF EDUCATION THERE IS NO METAPHYSICS HERE NOT EVEN ANY POLITICAL PHILOSOPHY JUST POLITICAL OPPORTUNISM POLITICIANS ARE ALWAYS EAGER TO DUMP AN INTRACTABLE SOCIAL PROBLEM ON THE SCHOOLS TO DEAL WITH WHETHER IT BE TEENAGE ILLEGITIMACY JUVENILE DELINQUENCY DRUG ADDICTION ALCOHOLISM OR RECKLESS DRIVING THIS EXPRESSES THEIR SINCERE CONCERN FOR THE WELLBEING OF OUR YOUTH THE EDUCATIONAL ESTABLISHMENT IN ITS TURN IS HAPPY TO TAKE OVER SUCH JURISDICTION IF IT IS ACCOMPANIED BY A LARGER BUDGET AND A TACIT AGREEMENT THAT THE EDUCATORS CONTINUE TO CONTROL THE SCHOOLS IN ALL OTHER RESPECTS WHEN IT TURNS OUT AS IT HAS THAT THE SCHOOLS CANNOT DEAL WITH THESE PROBLEMS THE POLITICIANS CAN AT LEAST CLAIM CREDIT FOR DOING SOMETHING THE EDUCATORS FOR THEIR PART WILL EXPLAIN THAT THESE PROBLEMS ARE SO DEEPROOTED THAT THEY NEED EVEN LARGER BUDGETS TO MAKE ANY KIND OF IMPRESSION ON THEM THE GOALS 2000 BILL DODGES ALL SUCH ISSUES INSTEAD IT TURNED OVER THE TASK OF EDUCATIONAL REFORM TO EXPERTS WITHIN THE EDUCATIONAL ESTABLISHMENT THESE EXPERTS WERE SUPPOSED TO COME UP WITH NEW AND IMPROVED CURRICULA THAT WOULD MAKE TEACHERS HAPPIER TO TEACH AND STUDENTS MORE EAGER TO LEARN INEVITABLY AND NATURALLY THEY ALL WORKED WITHIN THE INTELLECTUAL FRAMEWORK OF EDUCATION RATHER THAN THE OLDER DISCREDITED AND MUCH SIMPLER FRAMEWORK OF SCHOOLING SIMPLICITY IS THE DEADLIEST ENEMY OF THE EDUCATIONAL ESTABLISHMENT SINCE IT THREATENS THE ESTABLISHMENT'S SOVEREIGNTY OVER THE INFINITELY COMPLEX MISSION OF EDUCATION THE SUGGESTED REFORMS OF COURSE ONLY ADD TO THIS COMPLEXITY SOMETIMES TO A LUDICROUS DEGREE THE ARTS EXPERTS AS WOULD BE EXPECTED CAME UP WITH THE CRAZIEST IDEAS EVEN THE ESTABLISHMENT ITSELF COULD NOT SWALLOW THE IDEA THAT A HIGHSCHOOL STUDENT SHOULD ACHIEVE SUCH MASTERY OF MUSIC AS TO PERFORM IN FIVE DISTINCT STYLES OF WESTERN ART OR POPULAR MUSIC AND AT LEAST THREE STYLES NOT DERIVED FROM THE WESTERN MUSIC TRADITION ONE SUSPECTS THAT MANUFACTURERS OF MUSICAL INSTRUMENTS MIGHT HAVE A MORE BENIGN VIEW OF SUCH AN ENTERPRISE IN OTHER FIELDS TOO AN ENORMOUS ACADEMIC PRETENTIOUSNESS IS COMBINED WITH A CASUAL DISMISSAL OF MERE SCHOOLING HISTORIANS WOULD HAVE OUR STUDENTS LEARN THE CAUSES OF JUST ABOUT EVERY HISTORICAL EVENT BUT THE DATES OF NONE OF THEM MATHEMATICIANS WOULD HAVE OUR STUDENTS LEARN TO THINK MATHEMATICALLY WITHOUT BOTHERING TO LEARN THE MULTIPLICATION TABLE OUR EXPERTS IN LITERATURE WOULD LIKE TO SEE OUR STUDENTS LEARN TO THINK CRITICALLY ABOUT TEXTS OF ANY KIND BUT NOT TO BOTHER LEARNING GRAMMAR OR SPELLING AND SO ON NOR CAN ONE TAKE SERIOUSLY THE PROSPECT THAT THERE WILL BE ANY KIND OF GENUINE FOCUS ON EDUCATIONAL OUTCOMES TESTS WILL END UP BEING NORMED SO THAT NO STUDENT WILL SUFFER THE TRAUMA OF DISCOVERING THAT HE OR SHE HAS LITTLE ACADEMIC APTITUDE AS IF THE STUDENTS DIDN'T KNOW IT ALREADY BESIDES HOW DOES ONE TEST FOR CURIOSITY OPENMINDEDNESS SKEPTICISM AND COMPASSION WHICH THE EDUCATIONAL ESTABLISHMENT THINKS ARE THE TRUE GOALS OF EDUCATION IS IT ANY WONDER THAT AMERICA'S PARENTS TRYING TO EVADE THIS ESTABLISHMENT AND ITS POLITICAL ALLIES ARE SHOWING AN EVER KEENER INTEREST IN HOME SCHOOLING AS WELL AS IN PRIVATE SCHOOLS AND RELIGIOUS SCHOOLS SCHOOLS WHERE SCHOOLING TAKES PLACE THAT'S WHAT PARENTS WANT THE GOALS 2000 LEGISLATION IS THE WAVE OF YESTERYEAR'S FUTURE IN THE 21ST CENTURY AUTHENTIC EDUCATIONAL REFORM WILL HAVE AS ITS GOAL THE REDISCOVERY OF THE SCHOOL MR KRISTOL AN AMERICAN ENTERPRISE INSTITUTE FELLOW COEDITS THE PUBLIC INTEREST AND PUBLISHES THE NATIONAL INTEREST 9404180040 940418 ROGERS'S MACLEAN HUNTER OFFER THE OFFER AT 1750 CANADIAN DOLLARS US1268 A SHARE WAS DUE TO EXPIRE APRIL 15 ROGERS DESCRIBED THE EXTENSION AS FINAL ROGERS IS A TELECOMMUNICATIONS CONCERN AND MACLEAN IS A PRINTING AND PUBLISHING COMPANY BOTH ARE BASED IN TORONTO 9404180039 940418 BUSINESS BRIEF HALLWOOD REALTY PARTNERS LP DALLAS REAL ESTATE VENTURE AGREES TO SETTLE ROLLUP SUIT HALLWOOD REALTY PARTNERS LP AGREED TO PAY NEARLY 10 MILLION TO SETTLE A CLASSACTION LAWSUIT ON BEHALF OF INVESTORS WHO RECEIVED HALLWOOD STOCK AS PART OF A CONSOLIDATION OF REALESTATE PARTNERSHIPS IN 1990 THE ROLLUP CONSOLIDATION OF PARTNERSHIPS SPONSORED BY NOWDEFUNCT EQUITEC FINANCIAL GROUP INTO PUBLICLY TRADED HALLWOOD A DALLAS REAL ESTATE MANAGER LEFT THE INVESTORS WITH STOCK VALUED AT LESS THAN 10 OF THEIR INITIAL INVESTMENT THEIR SUIT FILED IN FEDERAL COURT IN CALIFORNIA ALLEGED THEY WERE CHEATED IN THE CONSOLIDATION UNDER THE PROPOSED SETTLEMENT WHICH REQUIRES COURT APPROVAL HALLWOOD WOULD PAY 4 MILLION IN CASH AND 575 MILLION IN NOTES HALLWOOD SAID IT AGREED TO SETTLE TO SAVE LITIGATION COSTS 9404180038 940418 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AMERICAN EAGLE OUTFITTERS INC AN INITIAL OFFERING OF 23 MILLION COMMON SHARES AT 16 A SHARE WITH AN OVERALLOTMENT OPTION FOR AN ADDITIONAL 345000 SHARES VIA DEAN WITTER REYNOLDS INC AMERICAN LASER GAMES INC A PROPOSED INITIAL OFFERING OF 21 MILLION COMMON SHARES AT AN EXPECTED 10 TO 12 A SHARE VIA COWEN & CO AND NEEDHAM & CO LAZERTRON CORP A PROPOSED INITIAL OFFERING OF 13 MILLION SHARES AT AN ANTICIPATED 850 TO 1050 A SHARE VIA VAN KASPER & CO PARAGON GROUP INC AN INITIAL OFFERING OF 12355000 COMMON SHARES AT AN EXPECTED 24 A SHARE WITH AN OVERALLOTMENT OPTION FOR 1853249 ADDITIONAL SHARES VIA MERRILL LYNCH & CO CS FIRST BOSTON INC DEAN WITTER REYNOLDS INC AG EDWARDS & SONS INC AND SMITH BARNEY SHEARSON INC SANTA FE PACIFIC GOLD CORP A UNIT OF SANTA FE PACIFIC CORP AN INITIAL OFFERING OF 18 MILLION COMMON SHARES AT 1350 TO 1550 A SHARE VIA GOLDMAN SACHS & CO MERRILL LYNCH & CO AND SG WARBURG & CO 9404180037 940418 DANISH NEW CAR REGISTRATIONS COPENHAGEN DANISH NEW CAR REGISTRATIONS ROSE 82 IN MARCH TO 14191 UNITS FROM 7814 UNITS A YEAR EARLIER SAID DANMARKS STATISTIK THE DANISH STATISTICAL AGENCY NEW BUS REGISTRATIONS ALSO INCREASED 21 TO 187 UNITS FROM 146 UNITS 9404180036 940418 BUSINESS BRIEF WAXMAN INDUSTRIES INC HOME SYSTEMS MAKER ALTERS ITS DEBT REFINANCING AGENDA WAXMAN INDUSTRIES INC SAID IT MODIFIED ITS DEBT REFINANCING PLANS IN RESPONSE TO THE CONTINUING UNFAVORABLE MARKET CONDITIONS THE BEDFORD HEIGHTS OHIOBASED HOME ELECTRICAL AND PLUMBING MANUFACTURER WILL REFINANCE A PORTION OF ITS OUTSTANDING 1375 SENIOR SUBORDINATED NOTES DUE 1999 AND ALL BORROWINGS OUTSTANDING UNDER ITS DOMESTIC BANK CREDIT FACILITIES IT ALSO WILL SOLICIT CERTAIN CONSENTS FROM THE HOLDERS OF ITS SENIOR SUBORDINATED AND SECURED NOTES DUE 1998 WAXMAN SAID IT HAS ENDED AN OFFER TO PURCHASE FOR CASH ALL BUT NOT LESS THAN 66 MILLION AGGREGATE PRINCIPAL AMOUNT OF ITS 1375 SENIOR SUBORDINATED NOTES DUE JUNE 1 1999 BASED ON PRELIMINARY DISCUSSIONS WAXMAN SAID THE REFINANCING WILL BE FULLY SUBSCRIBED AND THE REQUISITE CONSENTS WILL BE OBTAINED IN THE NEXT FEW WEEKS 9404180035 940418 BUSINESS BRIEF GENENTECH INC FIRSTPERIOD PROFIT DOUBLED FOR BIOTECHNOLOGY CONCERN GENENTECH INC SAID ITS FIRSTQUARTER EARNINGS MORE THAN DOUBLED CITING STRONG SALES OF ITS CLOTBUSTING DRUG AND PRODUCT APPROVALS THE SAN FRANCISCOBASED BIOTECHNOLOGY CONCERN SAID ITS FIRSTQUARTER NET WAS 389 MILLION OR 33 CENTS A SHARE COMPARED WITH 143 MILLION OR 12 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 30 TO 1989 MILLION FROM 153 MILLION GENENTECH SAID SALES OF ITS CLOTBUSTING DRUG ACTIVASE USED TO TREAT HEART ATTACK PATIENTS ROSE 43 IN THE QUARTER TO 70 MILLION FROM 49 MILLION DURING THE QUARTER GENENTECH LAUNCHED TWO NEW PRODUCTS A HUMAN GROWTH HORMONE FOR TREATING GROWTH FAILURE AND ONE TO TREAT CYSTIC FIBROSIS 9404180034 940418 SIGNATURE BRANDS ACQUISITION TORONTO SIGNATURE BRANDS LTD SAID IT REACHED AN AGREEMENT TO ACQUIRE SAVOURY PROCESSED FOODS INC AND ITS ROSITA'S FINE FOODS 1985 LTD AFFILIATE TERMS WEREN'T DISCLOSED SIGNATURE BRANDS SAID THE ACQUISITION WILL SIGNIFICANTLY INCREASE THE COMPANY'S NATIONAL REVENUE BASE AND ENHANCE THE EFFICIENCY OF ITS DISTRIBUTION SYSTEM IT SAID CLOSING IS EXPECTED IN MAY SUBJECT TO REGULATORY APPROVAL 9404180033 940418 FINNISH CONSUMER PRICES HELSINKI FINLAND'S CONSUMER PRICE INDEX ROSE 02 IN MARCH FROM FEBRUARY THE FINNISH CENTRAL STATISTICAL OFFICE SAID THE MARCH FIGURES BROUGHT THE YEARTOYEAR INFLATION RATE TO 04 UP FROM 03 IN FEBRUARY AND DOWN FROM 27 IN MARCH A YEAR EARLIER THE CURBING OF INFLATION WAS DUE MAINLY TO INTEREST CUTS FOLLOWING A SUSTAINED FALL IN INTEREST RATES SINCE NOVEMBER 1992 HOUSING LOAN RATES FELL NEARLY THREE PERCENTAGE POINTS FROM A YEAR EARLIER AND CONSUMER CREDIT RATES DROPPED NEARLY FOUR PERCENTAGE POINTS FROM FEBRUARY TO MARCH THE INFLATION RATE WAS FUELED BY A 35 INCREASE IN DWELLING PRICES FOOD PRICES ROSE 08 THE BIGGEST YEARTOYEAR INCREASE 41 OCCURRED IN HEALTH AND MEDICAL CARE THE CENTRAL STATISTICAL OFFICE SAID 9404180032 940418 BUSINESS BRIEF NUMAC ENERGY INC COMPANY'S BID IS EXTENDED WITH POSSIBLE PENNZOIL ROLE NUMAC ENERGY INC EXTENDED THE EXPIRY TIME OF ITS OFFER TO ACQUIRE COENERCO RESOURCES LTD UNTIL APRIL 28 IN RESPONSE TO PENNZOIL CO'S PROPOSAL TO MAKE A BID NUMAC PRESIDENT AND CHIEF EXECUTIVE IRVINE KOOP SAID THE OFFER WHICH WAS DUE TO EXPIRE LAST WEEK IS BEING HELD OPEN TO ALLOW COENERCO'S SECURITY HOLDERS TO ASSESS IT AGAINST OTHER OFFERS NUMAC RECENTLY VALUED ITS OFFER FOR ALL OF COENERCO'S SHARES AND CONVERTIBLE DEBENTURES HELD IN CANADA AT ABOUT 2782 MILLION CANADIAN DOLLARS US2009 MILLION PENNZOIL'S PROPOSED OFFER FOR ALL COENERCO'S SHARES AND CONVERTIBLE DEBENTURES IS VALUED AT ABOUT 306 MILLION CANADIAN DOLLARS 221 MILLION PENNZOIL SAID IT PLANS TO TABLE ITS BID IN ABOUT TWO WEEKS NUMAC AND COENERCO ARE CALGARY OIL AND GAS PRODUCERS PENNZOIL IS A HOUSTON PETROLEUM COMPANY 9404180031 940418 PITTENCRIEFF COMMUNICATIONS ABILENE TEXAS PITTENCRIEFF COMMUNICATIONS INC SAID IT REACHED AGREEMENTS TO ACQUIRE 592 MOBILE RADIO CHANNELS IN METROPOLITAN AREAS OF ARIZONA UTAH AND NEVADA FOR A TOTAL OF 518 MILLION IN CASH AND STOCK THE CHANNELS CURRENTLY SERVE A TOTAL OF 42000 SUBSCRIBER UNITS 9404180030 940418 REVIEW & OUTLOOK EDITORIAL HOW TEACHERS ERASE BOARDS THOUGH MOST PEOPLE THINK OF THE LOCAL SCHOOLS AS A VITAL PART OF THEIR COMMUNITY IT IS AN ODD FACT THAT VERY FEW PEOPLE EVER SHOW UP TO VOTE FOR THEIR LOCAL SCHOOL BOARDS WHICH SET SCHOOL POLICIES AFTER FEDERAL AND STATE MANDATES ARE MET HOWEVER AT LEAST ONE INTERESTED PARTY TO THE SCHOOLS DEBATE HAS FOUND A WAY TO EXPLOIT THESE LOW CITIZEN TURNOUTS TEACHER UNIONS GROWN IN POWER OFTEN FIND THAT THESE LOWTURNOUT ELECTIONS ARE A BETTER WAY TO ACHIEVE THEIR GOALS THAN STRIKING THEY'VE MANAGED TO GET SYMPATHIZERS ONTO THE GOVERNING BODIES OF LOCAL DISTRICTS AIMING TO CONTROL BOTH THE MANAGEMENT AND LABOR SIDES OF THE BARGAINING TABLE BUT SOMETIMES EVEN THE NEXT ELECTION CYCLE IS TOO LONG TO WAIT TO SATISFY TEACHER EXPECTATIONS THEY'VE NOW DISCOVERED THAT WAGING RECALL CAMPAIGNS AGAINST SCHOOL BOARDS IS A QUICKER WAY TO CRACK THE WHIP ON MEMBERS WHO DON'T ACCEDE TO THE UNION'S DEMANDS LAST WEEK THREE TRUSTEES OF THE UNION ELEMENTARY SCHOOL DISTRICT IN THE SAN JOSE CALIF AREA WERE REMOVED TWO OF THEM ONLY SIX MONTHS BEFORE THEIR TERMS WERE UP A FOURTH BOARD MEMBER SURVIVED BY 200 VOTES WITH EXTRAORDINARY EFFORT THE RECALL CAMPAIGN WAS GREATLY FUNDED AND MANNED BY THE LOCAL TEACHER UNION WITH A CONSULTANT AND MONEY FROM THE CALIFORNIA TEACHERS ASSOCIATION OPPONENTS OF THE RECALL HAVE FILED A COMPLAINT WITH ELECTION AUTHORITIES ALLEGING THAT THE TEACHERS SOUGHT TO HIDE THE EXTENT OF THEIR INVOLVEMENT THE DISTRICT BOARD ANGERED THE UNION IN TWO BASIC WAYS BY NOT AGREEING TO USE 114 MILLION IN PROCEEDS FROM SALE OF A SURPLUS SCHOOL SITE TO GIVE RAISES AND BY RETAINING A SUPERINTENDENT WHO SOUGHT TO SHAKE UP ESTABLISHED ROUTINES AMONG PERSONNEL IT HAPPENS THAT AFTER A SICKOUT AND WORK TO RULE TACTICS BY THE TEACHERS BROUGHT ON NEW TENSIONS A MAJORITY OF THE TRUSTEES SUBSEQUENTLY AGREED TO THE ONGOING RAISE FROM ONETIME REVENUES AND A BUYOUT OF THE SUPERINTENDENT'S CONTRACT BUT TO SHOW WHO'S BOSS THE RECALL EFFORT PROCEEDED ANYWAY AGAINST THE MAJORITY AND MINORITY ALIKE SIMILAR ISSUES WERE BEHIND A 1992 RECALL OF THREE BOARD MEMBERS IN THE NEARBY SANTA CLARA UNIFIED SCHOOL DISTRICT THEY WERE TURNED OUT ALONG WITH THE REMAINING TRUSTEES WHO WERE UP FOR ELECTION AT THAT TIME INTERESTINGLY IN BOTH OF THESE DISTRICTS THE SALARY SQUABBLE FOCUSED HEAVILY ON THE PAY OF OLDER TEACHERS WHO TEND TO BE THE MOST INFLUENTIAL IN UNION AFFAIRS THE TWO DISTRICTS HAVE MATURE STAFFS AND WERE ACCUSED OF SHORTCHANGING THESE INSTRUCTORS WHICH IS ANOTHER WAY OF SAYING THAT THE DISTRICTS WANTED INSTEAD TO EMPHASIZE THE INCENTIVES FOR ATTRACTING NEW TALENT TO THE RANKS THE UNION DISTRICT WHICH COMPRISES A SUBURBAN IDYLL AROUND THE FORMER ALMADEN VINEYARDS ALSO UPSET ITS ORGANIZED TEACHERS WITH AN INTRADISTRICT SCHOOL CHOICE POLICY WHICH OCCASIONALLY REQUIRES STAFF TO BE SHIFTED AROUND AS PARENTS OPT FOR SOME SCHOOLS OVER OTHERS PUBLICSECTOR UNIONS ARE NOT KNOWN FOR THEIR CUSTOMER ORIENTATION AS YET THE UNIONS' RECALL WEAPON HAS BEEN EMPLOYED SPARINGLY IN SUCH BATTLES NATIONWIDE BUT NEWS OF SUCCESS WILL TRAVEL POLITICIZED TEACHERS KNOW THEY CAN RELY ON SUPPORT FROM A FRACTION OF THE POPULACE WHILE MOST CITIZENS DON'T BOTHER TO VOTE IN THESE ELECTIONS WHICH TYPICALLY ARE POORLY COVERED BY SUBURBAN NEWSPAPERS THE BALANCE OF THE ELECTORATE WHOSE TAXES PAY THE COST OF THIS HEAVY FREIGHT MIGHT WANT TO PAY CLOSER ATTENTION TO THE LESSON 9404180029 940418 BUSINESS BRIEF WEATHERFORD INTERNATIONAL INC OILFIELD RENTAL OPERATIONS ARE ACQUIRED FROM ODFJELL HOUSTON WEATHERFORD INTERNATIONAL INC SAID IT ACQUIRED OILFIELD RENTALTOOL OPERATIONS FROM AFFILIATES OF A NORWEGIAN COMPANY FOR 552 MILLION THE CASH TRANSACTION COVERS THE ASSETS AND BUSINESSES OF VARIOUS RENTAL COMPANIES AFFILIATED WITH ODFJELL DRILLING & CONSULTING CO KNOWN COLLECTIVELY AS ODFJELL RENTAL ODFJELL RENTAL HAS OPERATIONS IN NORWAY THE UNITED KINGDOM THE NETHERLANDS AND SOUTHEAST ASIA WEATHERFORD AN ENERGYSERVICE CONCERN SAID THE ACQUISITION BOLSTERS ITS WORLDWIDE POSITION IN OILFIELD RENTAL TOOLS PARTICULARLY IN THE NORTH SEA AND IN SOUTHEAST ASIA FOR 1993 ODFJELL RENTAL HAD REVENUE OF MORE THAN 23 MILLION AND OPERATING EARNINGS OF MORE THAN 11 MILLION WEATHERFORD REPORTED 1993 NET INCOME OF 204 MILLION OR 41 CENTS A SHARE INCLUDING A 4 MILLION CHARGE ON REVENUE OF 3147 MILLION 9404180028 940418 MARKETING & MEDIA WALL STREET JOURNAL PLANS AN EXPANSION IN REGIONAL COVERAGE NEW YORK THE WALL STREET JOURNAL ANNOUNCED PLANS TO EXPAND ITS REGIONAL BUSINESS COVERAGE BY PRODUCING ADDITIONAL NEWS PAGES FOR READERS IN THE SOUTHEAST AND FLORIDA EVERY WEDNESDAY BEGINNING OCT THE FORMAT OF THE FOUR ADDITIONAL PAGES WILL FOLLOW THAT OF TEXAS JOURNAL WHICH WAS INTRODUCED TO THE JOURNAL'S TEXAS READERS LAST SEPTEMBER BRINGING WALL STREET JOURNALQUALITY COVERAGE TO REGIONAL BUSINESS JOURNALISM SOUTHEAST JOURNAL WILL APPEAR IN THE APPROXIMATELY 122000 JOURNALS THAT CIRCULATE IN GEORGIA ALABAMA NORTH CAROLINA SOUTH CAROLINA AND PORTIONS OF TENNESSEE FLORIDA JOURNAL WILL BE DISTRIBUTED THROUGHOUT THAT STATE WHERE JOURNAL DAILY CIRCULATION EXCEEDS 106000 DURING THE PEAK TOURIST SEASON BOTH FLORIDA JOURNAL AND SOUTHEAST JOURNAL WILL HAVE THEIR OWN NEWS AND ADVERTISING STAFFS BASED IN THE REGIONS DYNAMIC RAPIDLY EVOLVING BUSINESS COMMUNICATIONS AND GROWING ECONOMIES CHARACTERIZE THE REGIONS WE WANT TO SERVE WITH SOUTHEAST JOURNAL AND FLORIDA JOURNAL SAID PAUL E STEIGER MANAGING EDITOR OF THE WALL STREET JOURNAL WE KNOW FROM OUR SUCCESS WITH TEXAS JOURNAL THAT READERS APPRECIATE COVERAGE THAT LOOKS AT HOW AN ISSUE OR EVENT AFFECTS BUSINESS WITHIN A STATE OF REGION AND WE PLAN TO BRING THAT PERSPECTIVE TO BOTH FLORIDA AND THE SOUTHEAST THE WALL STREET JOURNAL IS PUBLISHED BY DOW JONES & CO WHICH ALSO PUBLISHES BARRON'S MAGAZINE AND OTHER PERIODICALS ELECTRONIC BUSINESS INFORMATION SERVICES INCLUDING DOW JONES TELERATE AND COMMUNITY NEWSPAPERS 9404180027 940418 INTERNATIONAL POLITICALPARTY SYSTEM IN JAPAN CRACKS FURTHER BY MICHAEL WILLIAMS STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S POLITICALPARTY SYSTEM FRACTURED FURTHER OVER THE WEEKEND CLOUDING THE PICTURE FOR THE SELECTION OF A PRIME MINISTER AND UNDERSCORING THAT THE NATION IS PROBABLY IN FOR AN EXTENDED BOUT OF LEGISLATIVE TUMULT LAWMAKERS MOVED TO DEFECT FROM BOTH THE RULING COALITION AND ITS MAJOR FOE MICHIO WATANABE A BLUNTSPEAKING POWER BROKER AND FORMER DEPUTY PRIME MINISTER SAID YESTERDAY HE WILL LEAVE THE OPPOSITION LIBERAL DEMOCRATIC PARTY TO FORM HIS OWN BLOC A DOZEN OR MORE LEGISLATORS WERE EXPECTED TO JOIN MR WATANABE MEANTIME FIVE OTHER LEGISLATORS BOLTED FROM THE LDP FRIDAY TO FORM THEIR OWN INDEPENDENT GROUP ALSO SAKIGAKE A SMALL BUT INFLUENTIAL LIBERAL PARTY IN THE GOVERNING COALITION SAID FRIDAY IT WOULDN'T PARTICIPATE IN A NEW COALITION CABINET PARTY HEAD MASAYOSHI TAKEMURA SAID YESTERDAY THE GROUP WOULD BACK THE COALITION FROM OUTSIDE THE CABINET THE IMMEDIATE CAUSE OF THIS JOCKEYING IS THE COMING SELECTION BY PARLIAMENT OF A SUCCESSOR TO PRIME MINISTER MORIHIRO HOSOKAWA WHO SAID APRIL 8 THAT HE WILL STEP DOWN PARLIAMENT MAY VOTE ON A NEW PRIME MINISTER AS EARLY AS TOMORROW SUPPORT HAS BEEN SOLIDIFYING FOR FOREIGN MINISTER TSUTOMU HATA AS THE NEXT PREMIER THOUGH MR WATANABE'S DECISION TO LEAVE THE LDP MIGHT CHANGE THAT CALCULUS INDEED MR WATANABE'S SECESSION COULD POTENTIALLY LEAD TO THE FORMATION OF A NEW COALITION AROUND HIM IN WHICH HIS GROUP REPLACES LIBERAL ELEMENTS IN THE PRESENT ALLIANCE WHOEVER WINS IT IS BECOMING INCREASINGLY CLEAR THAT JAPAN'S NEXT PRIME MINISTER WILL PRESIDE OVER A FRACTIOUS POLITICAL LANDSCAPE THE UNCERTAINTY MAY MAKE IT DIFFICULT TO LEGISLATE A PERMANENT INCOMETAX CUT AND ASSEMBLE MARKETOPENING MEASURES DIVISIVE ISSUES THAT ARE HIGH ON WASHINGTON'S AGENDA MR HATA A FORMER BUSCOMPANY EMPLOYEE AND A REFORMIST WITH A DOWNTOEARTH IMAGE ENJOYS WIDE SUPPORT AMONG VOTERS AND BUSINESS PEOPLE MR WATANABE ALSO HAS BUSINESS BACKING IN A PUBLICOPINION POLL BROADCAST SUNDAY BY TV ASAHI MR HATA WAS NAMED AS THE TOP CHOICE FOR PREMIER BY 54 OF RESPONDENTS VS 20 FOR RUNNERUP MR WATANABE BEYOND LIKING MR HATA HOWEVER THE ELECTORATE SEEMS DEEPLY SKEPTICAL ABOUT ITS POLITICAL LEADERSHIP IN THE SAME POLL THE LDP TOPPED ALL PARTIES WITH A SCANT 18 OF RESPONDENTS BUT THE LEADING CHOICE WAS NO PARTY SELECTED BY NEARLY HALF OF THOSE SURVEYED 9404180026 940418 REVIEW & OUTLOOK EDITORIAL NUCLEAR WAKEUP CALL NORTH KOREA'S NUCLEAR THREAT WOKE UP A LOT OF FOLKS WHO THOUGHT THEY'D BEEN RELIEVED OF THINKING ABOUT SUCH WORRIES WHEN THE COLD WAR ENDED DON'T THINK ABOUT TAKING ANY NUCLEAR NAPS FOR A LONG TIME EITHER CONSIDER THE CASE OF INDIA AND PAKISTAN WASHINGTON LATELY HAS GIVEN ITSELF THE MISSION OF STOPPING THE NUCLEAR ARMS RACE BETWEEN INDIA AND PAKISTAN AS IF SUCH A THING WERE A PLAGUE FROM MARS IT DOESN'T COME FROM MARS BUT RATHER FROM THE STRATEGIC DILEMMA CONFRONTING THESE TWO RIVALS IN SOUTH ASIA WASHINGTON NOW SEEMS TO ACCEPT THAT IT ONLY MADE THINGS WORSE WITH THE PRESSLER AMENDMENT WHICH CUT OFF MILITARY AID TO PAKISTAN FOUR YEARS AGO THE EROSION OF THE FIGHTING READINESS OF PAKISTAN'S INVENTORY OF USSUPPLIED AIRCRAFT TANKS AND COMBAT VEHICLES LEFT ISLAMABAD FEELING MORE NAKED THAN BEFORE WITHOUT A CREDIBLE NUCLEAR DETERRENT THE CLINTON ADMINISTRATION HAS BEEN ANGLING FOR A WAIVER TO RESUME DELIVERY OF F16 FIGHTERS THAT PAKISTAN HAS ALREADY PAID FOR THE ADMINISTRATION IN RETURN WANTS A PAKISTANI PROMISE TO STOP MESSING AROUND WITH FISSILE MATERIALS THE LINKAGE BETWEEN CONVENTIONAL AND NUCLEAR DEFENSES MAY BE A GOOD ONE IN THEORY BUT PUTS THE CART BEFORE THE HORSE THE PRINCIPLE THE ADMINISTRATION SHOULD OBSERVE IF NOT ADVERTISE IS THAT PAKISTAN OUGHT TO BE SUFFICIENTLY WELLARMED THAT IT CAN DEFEND ITSELF WITHOUT REACHING FOR THE NUCLEAR TRIGGER AS THINGS ARE SET UP NOW THE PAKISTANI BOMB IS EXPECTED NOT ONLY TO KEEP INDIA'S OWN NUCLEAR SWORD IN THE SCABBARD ISLAMABAD RELIES ON NUCLEAR THREATS TO DETER CONVENTIONAL ATTACK THIS HEIGHTENS THE FEAR THAT ANY OF THE TWO COUNTRIES' VARIOUS FLASHPOINTS COULD ESCALATE INTO A NUCLEAR SHOWDOWN THAT DOESN'T EXACTLY REPRESENT AN IMPROVEMENT IN THE REGION'S COMFORT LEVEL PAKISTAN REPORTEDLY MADE EXPLICIT THREATS TO BOMB INDIAN NUCLEAR POWER PLANTS AFTER PAKISTANI INTELLIGENCE GOT WIND OF INDIAN PLANS IN 1984 TO BOMB PAKISTAN'S NUCLEAR RESEARCH LAB AT KAHUTA BARELY VEILED NUCLEAR THREATS WERE AIRED FOUR YEARS AGO AS THE KASHMIR PROBLEM HEATED UP AND OF COURSE THE TWO COUNTRIES HAVE FOUGHT THREE CONVENTIONAL WARS SINCE 1947 THE IRONY IS THAT INDIA'S NUCLEAR PROGRAM IS ULTIMATELY AIMED AT CHECKING CHINA AND AT INDULGING INDIA'S IMAGE OF ITSELF AS AN INCIPIENT GREAT POWER NEW DELHI HAS INVESTED DECADES AND BILLIONS OF DOLLARS IN ITS NUCLEAR AND MISSILE RESEARCH COMPLEX ITS ARMY OF TECHNOLOGISTS IS NOW WELL ALONG IN DEVELOPING BALLISTIC MISSILES AND INTERNAL GUIDANCE SYSTEMS ADEQUATE TO DELIVER ATOMIC WARHEADS TO TARGETS AS FAR AWAY AS BEIJING THE INDIANS ARE ALREADY SCOUTING THE NEXT PHASE THE DEVELOPMENT OF INTERCONTINENTAL MISSILES WITH THERMONUCLEAR WARHEADS PAKISTAN MAY NOT BE THE PRIMARY REASON FOR THIS ARSENAL'S EXISTENCE BUT IT LIVES IN THE SHADOW OF INDIA'S NUCLEAR AMBITIONS WITH A MUCH SMALLER POPULATION AND ECONOMY PAKISTAN MIGHT HAVE OPTED FOR THE FINLANDIZATION ROUTE BUT INSTEAD ISLAMABAD HAS CHOSEN MILITANTLY TO DEFEND ITS INDEPENDENCE FROM INDIA PRIMARILY BY DEMONSTRATING ITS ABILITY TO MAKE THINGS UNCOMFORTABLE FOR THE INDIANS IT DOES THIS BY SUPPORTING A SEPARATIST REVOLT IN THE INDIAN STATE OF KASHMIR WHICH TIES UP ABOUT 40 OF THE INDIAN MILITARY ON INTERNAL SECURITY DUTIES AND BY ARMING ITSELF TO FIGHT THE INDIAN ARMED FORCES HEADON IF NECESSARY THIS APPROACH TO ASSURING ITS SECURITY MAY ANNOY WASHINGTON WHICH PROBABLY CARES MORE THESE DAYS ABOUT CULTIVATING ECONOMIC TIES WITH INDIA AND MAY EVEN HOPE SOMEDAY TO FASHION A STRATEGIC PARTNERSHIP WITH INDIA BUT IT DOESN'T MAKE PAKISTAN A ROGUE NATION AMERICAN INTELLIGENCE OFFICIALS HAVE NOTED WITH APPROVAL THAT ISLAMABAD HAS STEADFASTLY REBUFFED IRANIAN APPROACHES ON SHARING NUCLEAR TECHNOLOGY WE HOPE THAT THE CLINTON ADMINISTRATION DOESN'T COME TO FANCY ITSELF THE BEARER OF SOLUTIONS TO THE KASHMIR PROBLEM WHICH IS ROOTED IN ETHNORELIGIOUS COMPULSIONS AS WELL AS REGIONAL POWER JOCKEYING ON THE OTHER HAND ANYTHING THAT RATCHETS DOWN THE STRESS LEVEL GENERALLY WOULD TEND TO LESSEN PAKISTAN'S INCENTIVE TO INVEST IN THIS PROXY WAR TO DATE THOUGH THE ADMINISTRATION HASN'T MADE THINGS BETTER WITH ITS MALADROIT EARLY DIPLOMACY A COMEDY OF WITLESS ERRORS THAT OFFENDED THE AMOURPROPRE OF NEW DELHI BUT AT LEAST THE ADMINISTRATION CAN REMIND BOTH COUNTRIES THAT THEY HAVE NO INTEREST IN HAVING THEIR CITIES INCINERATED FOR THE SAKE OF THE KASHMIRIS AND IN THE PROCESS IT CAN REMIND THE REST OF US THAT THE NUCLEAR ISSUE STILL DESERVES ATTENTION 9404180025 940418 MARKETING & MEDIA REEBOK TRADEMARK CASE ENDS NEW YORK A FEDERAL JUDGE HAS DETERMINED THAT KMART CORP TROY MICH AND MELVILLE CORP RYE NY DIDN'T ILLEGALLY COPY A STRIPE USED ON SEVERAL OF REEBOK INTERNATIONAL LTD'S ATHLETIC SHOES THE DECISION CAME AFTER A FOURDAY BENCH TRIAL AND EFFECTIVELY CONCLUDES A TRADEMARKINFRINGEMENT ACTION BY REEBOK IN LATE 1992 AGAINST THE TWO RETAILERS A SPOKESMAN FOR STOUGHTON MASSBASED REEBOK COULDN'T BE REACHED FOR COMMENT ON WHETHER IT WILL APPEAL 9404180024 940418 INDONESIAN BUSINESSMAN SETS OWN COURSE ABURIZAL BAKRIE TREADS GOLDEN PATH TO TRADE POST BY RICHARD BORSUK STAFF REPORTER OF THE WALL STREET JOURNAL JAKARTA IN A COUNTRY WHERE BUSINESS USUALLY IS CONDUCTED THROUGH SUBTLETIES AND THE HARD SELL IS SHUNNED ABURIZAL BAKRIE MAKES WAVES AND MONEY BY CHARGING STRAIGHT FOR WHAT HE WANTS ON A MISSISSIPPI RIVER CRUISE IN 1990 MR ABURIZAL CHAIRMAN OF INDONESIA'S BAKRIE GROUP TOLD HIS HOSTS HE WANTED TO BUY A SHARE IN THEIR INDONESIAN COPPERANDGOLD MINE IT WASN'T FOR SALE BUT MR ABURIZAL WAS UNDETERRED HE TOLD THEM THEY'D NEED AN INDONESIAN PARTNER AND HE WAS THEIR MAN SIX MONTHS LATER FREEPORT MCMORAN COPPER & GOLD INC OF THE US ASKED IF HE STILL WAS INTERESTED IN JANUARY 1992 MR ABURIZAL'S FAMILY PAID 213 MILLION FOR 10 OF PT FREEPORT INDONESIA THE FREEPORT UNIT THAT OPERATES THE MINE IN INDONESIA'S RUGGED IRIAN JAYA PROVINCE LATER THAT YEAR FREEPORT ANNOUNCED ORE DISCOVERIES AT WHAT HAS BECOME THE WORLD'S LARGEST GOLD RESERVE ONLY 10 MONTHS AFTER BUYING IN MR ABURIZAL SOLD HALF HIS STAKE BACK TO FREEPORT FOR 212 MILLION THAT SUM JUST ABOUT COVERED HIS ORIGINAL INVESTMENT LEAVING HIM WITH 5 ACQUIRED VIRTUALLY FOR FREE NOW THE 47YEAROLD HAS TAKEN HIS BLUNT STYLE BEYOND FAMILY BUSINESS HE RECENTLY SET HIS SIGHTS ON BECOMING CHAIRMAN OF THE INDONESIAN CHAMBER OF COMMERCE AND INDUSTRY AFTER LOBBYING INTENSIVELY AND BEING ELECTED TO THE FIVEMEMBER TEAM RESPONSIBLE FOR NAMING THE CHAIRMAN THE TEAM NAMED HIM THE CHAMBER CHAIRMANSHIP HAS BEEN LARGELY CEREMONIAL BUT MR ABURIZAL AIMS TO BREAK THAT TRADITION USING IT TO LOBBY FOR BANK AND GOVERNMENT SUPPORT TO HELP PRIBUMIS OR INDIGENOUS INDONESIANS SUCCEED IN BUSINESS BUT IF HE CAMPAIGNS TOO STRONGLY FOR PRIBUMIS MR ABURIZAL COULD OPEN HIMSELF TO CHARGES HE IS ANTICHINESE AND TANGLE WITH CHINESE BUSINESSMEN WHO DOMINATE INDONESIAN COMMERCE MR ABURIZAL IS ONE OF A HANDFUL OF PROMINENT PRIBUMI BUSINESS PEOPLE IN INDONESIA NOT RELATED TO PRESIDENT SUHARTO THIS GIVES HIM AN ADVANTAGE FOREIGN INVESTORS NEED PARTNERS AND MANY PARTICULARLY SEEK A PRIBUMI AN AMERICAN BUSINESSMAN SAYS BUT MANY FOREIGNERS HE ADDS DON'T WANT TO JOIN UP WITH MR SUHARTO'S KIDS BECAUSE OF UNCERTAINTY OVER WHETHER THEIR BUSINESSES WILL SUFFER AFTER MR SUHARTO IS GONE MR ABURIZAL COMBINES ADVANTAGE WITH AMBITION WHEN ENVISIONING THE FUTURE OF HIS BAKRIE GROUP A COMPLICATED MIX OF PRIVATE AND LISTED COMPANIES FOR WHICH TOTAL SALES OR ASSETS AREN'T DIVULGED THE CHAIRMAN PLANS TO MORE THAN TRIPLE THE GROUP'S WORK FORCE BY THE END OF THE DECADE TO 50000 FROM 14000 HE SEES IT HITTING 100000 BY 2010 AS A BUSINESSMAN MR ABURIZAL EARNS PRAISE FROM PEERS FOR BRINGING IN PROFESSIONAL MANAGERS IN 1989 HE RECRUITED TANRI ABENG PRESIDENT OF PT MULTI BINTANG INDONESIA TO LEAD BAKRIE'S LISTED FLAGSHIP HOLDING COMPANY PT BAKRIE & BROTHERS BOTH INDONESIAN AND FOREIGN EXECUTIVES CONSIDER MR TANRI WHO RAN THE COMPANY THAT MAKES BINTANG BEER ONE OF THE COUNTRY'S BEST MANAGERS THE GROUP'S MAIN BUSINESSES ARE MAKING PIPES OTHER MANUFACTURING PLANTATIONS TRADE FINANCE AND TELECOMMUNICATIONS IT ALSO HAS INTERESTS IN TELEVISION AND PETROCHEMICALS THE GROUP'S FREEPORT DEAL BEGAN WITH AN INVITATION FROM JAMES R MOFFETT THE FREEPORT MCMORAN COPPER & GOLD CHAIRMAN FOR MR ABURIZAL TO TOUR THE MINE ON THAT VISIT MR ABURIZAL SUGGESTED THE TWO MEN SUPPORT A COMMUNITYDEVELOPMENT PROJECT THE BAKRIE CHAIRMAN SAYS HE TOLD MR MOFFETT JIM BOB YOU HAVE YOUR OWN PLANE I HAVE MY OWN PLANE LOOK AT THEM PEOPLE LIVING NEAR THE MINE SITE THEY DON'T HAVE HOUSES MR ABURIZAL SAYS HE PROPOSED THEY EACH DONATE 50000 TO BUILD SOME BASIC HOUSES AND WAS IMPRESSED TO LEARN FREEPORT PUT MILLIONS OF DOLLARS INTO THAT AND OTHER COMMUNITY PROJECTS THAT VISIT ALSO SPARKED A RELATIONSHIP THAT RESULTED IN THE MISSISSIPPI RIVER RIDE AND BAKRIE'S PARTNERSHIP IN THE MINE MR MOFFETT SAYS THE BAKRIE CHAIRMAN EASILY WAS THE BEST CANDIDATE OF SEVERAL INDONESIANS WHO WANTED TO TEAM UP WITH FREEPORT HE COULD RAISE THE MORE THAN 200 MILLION NEEDED AND AS AN ELECTRICAL ENGINEER HE COULD UNDERSTAND MINING'S COMPLEXITIES PLUS HE WAS A GOOD RISKTAKER BUT BAKRIE'S RISK WAS MINIMAL SOME BUSINESSMEN CONTEND FREEPORT WAS EXPECTING SIGNIFICANT ORE DISCOVERIES AND THE US COMPANY HELPED MR ABURIZAL GET A 173 MILLION LOAN TO BUY THE PT FREEPORT SHARES BUT MR ABURIZAL SAYS THERE WAS A BIG POSSIBILITY HE WOULD LOSE HEAVILY IF THE SHARE PRICE OF FREEPORT MCMORAN COPPER & GOLD LISTED IN NEW YORK DROPPED SHARPLY INSTEAD THE FREEPORT UNIT'S SHARES SOARED ALLOWING MR ABURIZAL TO DOUBLE HIS MONEY NOW THE FAMILY PLANS TO PUT ITS REMAINING 5 STAKE INTO THE GROUP'S BAKRIE & BROTHERS HOLDING COMPANY WHICH PLANS A RIGHTS OFFERING OF AS MUCH AS 550 TO ACQUIRE THE STAKE AND OTHER FAMILY ASSETS WITH THE PLANNED RIGHTS ISSUE MR ABURIZAL AGAIN IS THINKING BIG WITH ONE STROKE HE PLANS TO MAKE RARELY TRADED BAKRIE & BROTHERS INTO ONE OF THE TOP 10 COMPANIES ON THE JAKARTA STOCK EXCHANGE IN TERMS OF CAPITALIZATION FACING A SLIDING MARKET THE PLANNED ISSUE LEAVES MANY JAKARTA STOCK ANALYSTS UNENTHUSIASTIC THEY FIND BAKRIE'S STRUCTURE TOO COMPLICATED AND ITS STRATEGY UNCLEAR IN ADDITION TO BAKRIE & BROTHERS THE GROUP HAS TWO HOLDING COMPANIES FAMILYHELD BAKRIE INVESTINDO AND BAKRIE NUSANTARA BUT MR TANRI SAYS HE'S MAKING SIGNIFICANT PROGRESS TOWARD GROUPING ALL MANUFACTURING UNDER BAKRIE & BROTHERS AND LEAVING NUSANTARA TO WORK ONLY IN FINANCE QUESTIONS ABOUT THE BAKRIE GROUP'S FINANCIAL HEALTH AROSE IN MID1993 WHEN IT WAS ONE OF 26 COMPANIES ON A LIST CIRCULATED WIDELY IN JAKARTA NAMING GROUPS THAT PURPORTEDLY HAD BAD DEBTS AT STATE BANKS BAKRIE HOWEVER SAYS THE ALLEGATION CONCERNING IT WAS WRONG THE LIST PUT ITS LOANS AT MORE THAN 400 MILLION BUT MR TANRI ESTIMATES THE GROUP'S STATE BORROWINGS AT JUST 200 BILLION RUPIAH 927 MILLION WITH MR TANRI MANAGING THE PUBLIC COMPANY AND HIS TWO BROTHERS RUNNING MANY FAMILY BUSINESSES MR ABURIZAL CAN PUT TIME INTO THE CHAMBER OF COMMERCE KNOWN AS KADIN HE SAYS HE'S OBSESSED WITH HELPING PRIBUMIS IN BUSINESS BUT HE MUST TREAD A THIN LINE IF HE PUSHES TOO HARD FOR PROPRIBUMI POLICY HE'LL SCARE AWAY ETHNIC CHINESE BUSINESSMEN SOME OF WHO BELIEVE MR ABURIZAL IS AGAINST THEM BUT HE MAINTAINS HE ISN'T AGAINST THEM MR ABURIZAL HAS COURTED CHINESELED CONGLOMERATES TO EASE THEIR FEARS AND INVOLVE THEM MORE IN THE CHAMBER SOFYAN WANANDI HEAD OF THE GEMALA GROUP AND UNOFFICIAL SPOKESMAN FOR A GROUP OF CHINESE BUSINESSMEN WHO OWN A MANAGEMENT SCHOOL CREDITS MR ABURIZAL WITH STRIKING THE RIGHT TONE HE'S BEEN MODERATE MR WANANDI SAYS HE KNOWS EVERYBODY HAS TO WORK TOGETHER MR TANRI SAYS MR ABURIZAL CAN BE VERY PERSUASIVE ADDING IF ANYBODY CAN PULL CHINESE HELP TO NONCHINESE HE CAN 9404180023 940418 POLITICS & POLICY SWING DEMOCRATIC VOTERS ON HEALTHCARE PLAN JUST CAN'T STAY OFF THE WHITE HOUSE ITINERARY BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON EVERY TIME REP JIM SLATTERY TURNS AROUND IN HIS KANSAS CONGRESSIONAL DISTRICT ANOTHER CLINTON ADMINISTRATION OFFICIAL OR ALLY IS THERE EXTOLLING THE PRESIDENT'S HEALTHCARE PLAN IN RECENT WEEKS THE TOPEKAAREA DISTRICT HAS NOT ONLY RECEIVED VISITS FROM PRESIDENT CLINTON HIMSELF FOR A ROUND TABLE DISCUSSION WITH SMALLBUSINESS OWNERS BUT ALSO FROM HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA AND THE DAY AFTER THE PRESIDENT'S APPEARANCE FROM CLINTON FRIEND MARION WRIGHT EDELMAN PRESIDENT OF THE CHILDREN'S DEFENSE FUND REP SLATTERY WHO OPPOSES THE PRESIDENT'S PROPOSAL TO REQUIRE BUSINESSES TO PROVIDE HEALTH COVERAGE FOR THEIR EMPLOYEES KNOWS THAT ALL THE ATTENTION IS A WELLORCHESTRATED ATTEMPT TO ENCOURAGE ME TO VOTE FOR THE PRESIDENT'S PLAN NONETHELESS HE SAYS I WELCOME THEM ALL I'M DELIGHTED THEY ALL CAME THE ATTENTION ISN'T BY HAPPENSTANCE THE DEMOCRATIC CONGRESSMAN IS AMONG A SMALL BUT EXTREMELY IMPORTANT GROUP OF LAWMAKERS WHOSE VOTES ARE UNCOMMITTED BUT DEEMED WINNABLE BY THE WHITE HOUSE AND THEY'RE ABSOLUTELY ESSENTIAL IF ANYTHING RESEMBLING THE PRESIDENT'S PROPOSAL IS TO SUCCEED AS A RESULT THE ENTIRE CLINTON ADMINISTRATION HAS BEEN PUT ON ALERT AND ON THE ROAD TO WIN THESE SWING VOTERS OVER THE PRINCIPAL FOCUS OF THE WHITE HOUSE'S HEALTHCARE MARKETING CENTER DUBBED THE DELIVERY ROOM IS THE MEMBERSHIP OF THE COMMITTEES WITH MAJOR HEALTHCARE RESPONSIBILITIES THE HOUSE'S ENERGY AND COMMERCE AND ITS WAYS AND MEANS COMMITTEES AND THE SENATE FINANCE COMMITTEE SOMETIMES THE PLEAS COME STRAIGHT FROM MR CLINTON BUT MORE OFTEN THE PRESSURE IS MORE SUBTLE EMANATING FROM PRESIDENTIAL SURROGATES SINCE MIDMARCH CABINET MEMBERS AND SENIOR WHITE HOUSE OFFICIALS HAVE BEEN DISPATCHED ON MORE THAN 40 TRIPS TO 25 STATES TO PARTICIPATE IN MORE THAN 80 EVENTS ALL WITH AN EYE TOWARD BOLSTERING THE HEALTH PLAN MOST OF THESE HAVE BEEN IN THE STATES AND DISTRICTS REPRESENTED BY THIS KEY GROUP OF UNDECIDED LAWMAKERS SO FAR REP SLATTERY CONTINUES TO BE SKEPTICAL OF THE PRESIDENT'S PROPOSAL SO DO MANY OF THE OTHERS ON THE WHITE HOUSE'S SHORT LIST BUT THE BARGAINING HAS JUST BEGUN AND MORE TRIPS ARE BEING PLANNED THE CAMPAIGN SAYS WHITE HOUSE LOBBYIST STEVE RICCHETTI IS MUCH MORE EXTENSIVE AND WIDESPREAD AND IT COVERS A MUCH LARGER TERRITORY THAN THE CASUAL OBSERVER MIGHT BE ABLE TO PICK UP THE SCHEDULING OF EVENTS AND VISITATIONS IS DIRECTED FROM THE HIGHEST LEVELS OF THE WHITE HOUSE DEPUTY CHIEF OF STAFF HAROLD ICKES OVERSEES THE OPERATION HIS AIDES STAY IN CONSTANT CONTACT WITH CABINET OFFICIALS AND TOP WHITE HOUSE STAFFERS TO HELP COORDINATE THEIR SCHEDULES PLANNING MEETINGS ALSO ARE HELD WITH THE DEMOCRATIC NATIONAL COMMITTEE THE DEMOCRATIC POLICY PANELS IN THE HOUSE AND SENATE AND GROUPS OUTSIDE GOVERNMENT THAT ARE SYMPATHETIC TO THE CLINTON PLAN INCLUDING FAMILIES USA A PRIVATE FOUNDATION AND THE HEALTH CARE REFORM PROJECT A COALITION OF UNIONS CONSUMER GROUPS AND A FEW LARGE CORPORATIONS THAT STAND TO BENEFIT FROM THE PLAN IN JUST THE PAST FEW WEEKS IN REP LYNN SCHENK'S SAN DIEGOAREA DISTRICT INTERIOR SECRETARY BRUCE BABBITT AND VETERANS AFFAIRS SECRETARY JESSE BROWN DROPPED IN TIPPER GORE AIRED A RADIO INTERVIEW AND TWO OF THE WHITE HOUSE'S HEALTHCARE FORUMS WERE TELEVISED THERE ALL OF THIS IS IN ADDITION TO THE WEEKLONG VACATION THE ENTIRE FIRST FAMILY TOOK THERE LAST MONTH IT IS NO LONGER GOING TO BE AN OBSCURE POINT ON THE MAP REP SCHENK A FIRSTTERM DEMOCRAT AND ENERGY AND COMMERCE COMMITTEE MEMBER SAYS PROUDLY CLINTONITES HAVE BEEN COMING TO TOWN SHE EXPLAINS WITH SATISFYING FREQUENCY NOT ALL THE WHITE HOUSE'S EFFORTS FOR WAVERING LAWMAKERS INVOLVE TRAVEL LAST MONTH FOR EXAMPLE OKLAHOMA DEMOCRATIC REP BILL BREWSTER A SWING VOTE ON WAYS AND MEANS RECEIVED SEPARATE INVITATIONS TO MEET PRIVATELY WITH BOTH THE PRESIDENT AND WITH HILLARY RODHAM CLINTON AT THE WHITE HOUSE IN ADDITION THE OKLAHOMA PRESS CORPS THAT COVERS REP BREWSTER WAS TREATED TO A DAY OF SPECIAL BRIEFINGS BY SENIOR WHITE HOUSE OFFICIALS SUCH BLANKET EFFORTS HAVE A BENEFICIAL EFFECT MR RICCHETTI SAYS IT HAS HELPED MEMBERS WORK THROUGH ISSUES BUT NOT EVERYONE IS THRILLED BY THE ATTENTION DEMOCRATIC REP RICK BOUCHER OF ENERGY AND COMMERCE FOR ONE HAS ASKED OFFICIALS TO STAY AWAY FROM HIS VIRGINIA DISTRICT IT WAS MADE CLEAR THAT IF THE APPEARANCE OF CABINET MEMBERS WOULD BE BENEFICIAL THEY'D BE MADE AVAILABLE THE VIRGINIA DEMOCRAT SAYS I SAID THANK YOU WHEN WE NEED YOU WE'LL LET YOU KNOW' IN THE MEANTIME REP BOUCHER IS HOLDING A SERIES OF TOWN MEETINGS TO DISCUSS HEALTH CARE TO ME LISTENING AT THOSE THINGS IS MUCH BETTER THAN SIMPLY HAVING A PROGRAM SOLD IN MY DISTRICT HE SAYS AND THERE IS ALWAYS THE DANGER OF A BACKLASH AT LEAST ONE LAWMAKER TEXAS DEMOCRATIC REP MICHAEL ANDREWS COMPLAINS OF OVERKILL THE WAYS AND MEANS COMMITTEE MEMBER IS CONVINCED THAT THE WHITE HOUSE AND A SENIOR CITIZENS' GROUP CONSPIRED TO HOLD A NEWS CONFERENCE EARLIER THIS YEAR TO BASH HIM FOR NOT SUPPORTING THE CLINTON PLAN HE PICKED UP THE PHONE AND ACCUSED PATRICK GRIFFIN THE WHITE HOUSE'S TOP LOBBYIST OF TRYING TO COERCE HIM INTO SUPPORT BY USING THE GROUP AS A SURROGATE WHY WOULD YOU ATTACK ME REP ANDREWS RECALLS ASKING I'M SOMEBODY WHOSE VOTE YOU WANT ARE YOU GOING TO BEAT ME INTO SUBMISSION THE EVENT DIDN'T COME OFF AND MR GRIFFIN HAS DENIED THAT THERE WAS ANY COLLUSION BUT MOST OF THE SWING LAWMAKERS SEEM TO BASK IN ALL THE ATTENTION FROM THE WHITE HOUSE AND SUGGEST IT MAY YET DO SOME GOOD REP SLATTERY SAYS THE SMALLBUSINESS EXECUTIVES WHO PARTICIPATED IN THE TOPEKA ROUND TABLE WITH THE PRESIDENT CAME AWAY SAYING THE CLINTON PLAN SOUNDED A LOT BETTER THAN IT DID BEFORE BESIDES HE ADDS THE PRESIDENT LISTENED TO THEIR CONCERNS WHAT MORE CAN I ASK THE WHITE HOUSE'S LIST OF SWING VOTES ON THE HOUSE ENERGY AND COMMERCE AND WAYS AND MEANS COMMITTEE'S